India faces overall shortage of power in terms of energy and peaking power

Electricity is a concurrent subject. Supply and distribution of electricity to various consumers in a State/UT is within the purview of the respective State Government/State Power Utility. The Government of India supplements the efforts of the State Governments by establishing power plants and transmission system in Central Sector through Central Power Sector Undertakings (CPSUs). 

There is overall shortage of power in the country both in terms of energy and peaking power. The energy and peaking shortage in the country during the current year (April to June, 2014) was 4.0% and 3.7% respectively. 

The Government is taking the following steps to mitigate the shortcomings in supply of power to the consumers : 

1. Acceleration in generation capacity addition during 12th Plan with a proposed target of 88,537 MW from conventional sources and 30,000 MW from renewable energy sources. 
2. Undertaking a massive programme for strengthening of inter-state and inter-regional transmission capacity for evacuation of power. 
3. A new scheme has been announced in this year’s Budget for strengthening of sub-transmission and distribution networks and for segregation of agricultural feeders. 
4. Expeditiously resolving issues relating to environmental and forest clearances for power projects under implementation. 
5. Bridging the gap of indigenous coal availability through coal imports for increased generation by thermal plants. 
6. Promoting energy conservation, energy efficiency and demand side management measures. 
7. Government of India is providing financial assistance to States under Restructured Accelerated Power Development and Reforms Programme (R-APDRP) and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). 
8. In order to enable turnaround of State Discoms, the Central Government has approved and notified in October 2012, a Financial Restructuring Plan (FRP) of State owned Discoms. 
9. Renovation & Modernization (R&M) works are carried out by the concerned State and Central Power Utilities for improving the Plant Load Factor of power stations.