With growing economy, power sector needs to grow at 8.5 per cent: RK Singh

Power Sector growth: If the economy is to grow at 7.5 per cent, our power sector needs to grow at 8.5 per cent, the Minister of Power and Renewable Energy,  RK Singh said while laying the foundation stone for the residential complex in Gurugram on Friday. 

Singh, talking about the road ahead for the power sector, said, "If the system remains viable, investments will come. Investments are required since if the economy is to grow at 7.5 per cent, our power sector needs to grow at 8.5 per cent. Every industry wants to have resources that are slightly more than the current demand. If the peak demand today is 243 GW, then the contract demand will be more than 340 GW.If the economy is to grow at 7.5 per cent, our power sector needs to grow at 8.5 per cent, Minister of Power and Renewable Energy  RK Singh said while laying the foundation stone for the Residential Complex in Gurugram on Friday. 

Singh, talking about the road ahead for the power sector, said, “If the system remains viable, investments will come. Investments are required since if the economy is to grow at 7.5 per cent, our power sector needs to grow at 8.5 per cent. Every industry wants to have resources that are slightly more than the current demand. If the peak demand today is 243 GW, then the contract demand will be more than 340 GW.”

Singh, throwing light on the improvement in the power sector added, "IN 2017, the power sector was in doldrums. Outstanding dues of gencos were more than Rs 1.4 lakh crores. Most discoms were heavily indebted and did not have money even to buy power or maintain the systems. You and I have turned it around, we have made the system viable.”

He also informed that the present growth in terms of peak demand is almost around 10.5 per cent to 11 per cent and it will continue at this rate. 

On the renewable energy front, he said that India’s 161 GW of electricity capacity under construction will go up to 239 GW. “We have around 27,000 MW of thermal capacity under construction. We are increasing that to 80,000 MW. The funding for this will have to come,” the minister stated.