India Energy Infrastructure

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[5/5]Total Votes [ 6 ]  
Rate this page:
India Energy Infrastructure: India is certainly among the fastest growing countries in the world and its energy needs have increased exponentially over the past few years. This has put immense pressure on the existing power infrastructure (India Energy Infrastructure). In recent times the Indian government has realized the gravity of the situation and has shifted its focus to the power transmission and distribution sector.

A key part of the overall power reform strategy is to relay power effectively and efficiently from regions of surplus to deficit areas and load centers. The government is pushing ahead aggressively with its plans to build a national power grid. This is expected to ease peak-time shortages and make better use of available generating capacity.

Under this plan, ABB recently won a prestigious order valued at $48 million from Power Grid Corporation of India Limited (PGCIL) to design, build and install a new power transmission system at Vishakapatnam, in the state of Andhra Pradesh, located on India's southeast coast. The Vizag II high voltage direct current (HVDC) back-to-back East-South Inter connector III system will increase the capacity for high voltage power exchange between the two power grids by 500 MW. The system will operate alongside an existing HVDC station and feeds power to millions of consumers in India.

Power is a critical India Energy Infrastructure for the economic development of the country. To meet the projected power requirement by 2012, an additional capacity addition of 100000 MW is required in the next two five year plans. A capacity of nearly 41000 MW would be set up in the 10th plan and the remaining in the 11th plan with a stronger focus on hydro power. The central sector would contribute 22,5000 MW, the state sector 11400 MW and Private Sector 7,100 MW in the 10th Plan. Projects of above 19000 MW are already under construction and projects of 8900 MW aggregate capacity have the requisite approvals.

Creating an enabling infrastructure for Energy Sector growth:
For the growth in the India Energy Infrastructure, investments in ports, railways, pipelines and power transmission are urgently needed to attract energy sector investments in the first place and to enable efficient energy choices. Today, the capacities of these infrastructures are fully stressed and there is much inefficiency. Recognizing this, the Government has announced policies to involve private participation and India is witnessing private investment in ports, pipelines and power transmission. Even in case of railways, the Government has recently announced a policy decision to open container transportation to private sector on a common-carrier principle using the existing railroads.

The basic requirements for the development of Tourism Infrastructure are -

Accommodation -
  • Forest lodges.
  • Tented accommodation.
  • Tourist complexes / tourist lodges.
  • Wayside amenities.
  • Restaurants.
  • Tourist reception centers.
  • Pilgrim sheds / dormitories, etc. at pilgrimage centers.
Tourist transport -
  • Mini-buses, jeeps, elephants, etc. for wild life viewing.
  • Cruise boats, ferry launchers, etc. for water transport.
  • Tourist coaches in selected circuits.
  • Special tourist trains.
The Central Department of Tourism meets almost the entire expenditure, except the cost of land and interior decoration in the case of construction projects. The Central Government provides 28% cost of the project and 12% is provided by the State Governments. The remaining 60% has to be raised as a loan from financial institutions or banks. It is expected that the State Governments would be able to mobilize more resources from financial institutions for investment in Tourism Infrastructure

Last updated On: 1/3/2012

>> More about India Budget