More than 50 public sector power projects in India are delayed, some by up to 20 years, running up a massive $6.6 billion cost escalation and holding up the commissioning of an estimated 17 GWe of capacity.
A study carried out by the Associated Chambers of Commerce and Industry (ACCI) concludes that completion costs on up to 54 power plant construction projects have soared by more than 87 per cent from an initial estimate of $7.5 billion to $14.1 billion, while some projects are running as late as 20 years. The ACCI says the slippages are thwarting the country’s industrial growth as all but some eastern areas are suffering from severe power shortages. The business leaders’ forum has called on the Indian government to set up a ministerial committee to seize control of the individual “taskforces” charged with monitoring progress on the country’s projects to ensure remedial measures are taken to bring them to completion.
According to a report in the Economic Times of India, more than 10 state projects are lagging over 10 years, including Ranjit Sagar project in Punjab, Ghatgar in Maharashtra, Sharavati in Karnataka, Pykara in Tamil Nadu and Sardar Saraovar in Gujarat.
The news coincides with an announcement by the Central Electricity Regulatory Commission that PricewaterhouseCoopers, the global consultancy firm, has been appointed to suggest guidelines for inviting bids through the international competitive bidding (ICB) process for power plants.
