Haryana Plans $5.2 Billion Investment for 5,000-Megawatt Capacity Addition

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Researched by Industrial Info Resources (Sugar Land, Texas)--The northern Indian state of Haryana plans to add 5,000 megawatts (MW) of conventional power generation capacity by 2012 to combat the current power deficit in the state that surges to 15% to 17% during peak hours. The ambitious plan is estimated to require an investment of $5.2 billion at the rate of $1.03 million per MW. Haryana currently has an installed power generation capacity of 4,600 MW. Demand for power in the state is increasing at an annual rate of 10% to 15%.

The state is also planning to simultaneously increase the contribution of power generation from renewable energy sources to 10% of the total installed capacity. The Haryana Renewable Energy Development Agency has entered into six memoranda of understanding with several players for setting up renewable energy projects with an aggregate capacity of 714.8 MW. These include a 3-MW solar photovoltaic power project by RS India Wind Energy (New Delhi) and another 3-MW power project by Astonfield Renewable Resources (Kolkata, West Bengal). Epuron Renewable Energy (New Delhi) and Azure Power India (New Delhi) will set up power projects of 2 MW each. Omax Autos Limited (BSE:520021) (Dharuhera, Haryana) and Selecto Systems will develop power projects of 1 MW each. The projects are expected to bring in investments to the tune of $50 million and are scheduled to be commissioned by December 2009.

At present, 37 power projects worth $730 million are under way in the state. These are scheduled to be commissioned within the next two years. The projects include 24 biomass power projects with an aggregate capacity of 258 MW, entailing a total investment of $220 million, four wind power projects with a total capacity of 440 MW and investment of $455 million, and three hydropower projects with an aggregate capacity of 4.8 MW. Other projects under construction include the 1,200-MW Rajiv Gandhi thermal power project in the Hissar district and the 1,500-MW Indira Gandhi thermal power project in the Jhajjar district.

In August of this year, the state government of Haryana entered into power-purchase agreements and power-sharing agreements with several public sector and private players to procure 3,044 MW of power for a period of 25 years. Dakshin Haryana Bijlee Vitaran Nigam Limited and Uttar Haryana Bijlee Vitaran Nigam Limited entered into a power-purchase agreement with PTC Limited (BSE:532524) (New Delhi) and the Adani Group (BSE:512599) (Ahmedabad, Gujarat) to procure 1,724 MW of power for a period of 25 years. The Haryana Power Generation Corporation Limited (Chandigarh, Haryana) entered into a similar agreement with CLP Power Hong Kong Limited (Kowloon, Hong Kong) to procure 1,320 MW of power for 25 years.

In addition to boosting power generation capacity, Haryana is also focusing on augmenting the capacity of its power transmission and distribution network. The state government has firmed up plans to invest $405 million over the next two years to develop 70 new substations and augment the capacity of 68 existing substations in the state. Over the past three years, the state government has developed 87 new substations and enhanced the capacity of 196 existing substations.

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