Privatisation of Electricity Production

Government is encouraging development of power sector through combined efforts of public and private sector. The Electricity Act, 2003 promotes competition and creates a conducive environment for investment in all segments of the electricity industry, both for public and private sector.  Out of the total installed generation capacity of 243030 MW as on 31.3.2014, 82715 MW is in the private sector. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Lok Sabha.

The Minister further stated that to meet the increasing demand of electricity and to reduce the emission of greenhouse gases, Government is laying emphasis on the development of hydel, nuclear, solar and wind energy for power generation. However, for meeting the total demand for power in the country electricity generation is encouraged from all sources such as hydel, nuclear, solar and wind energy as well as coal based stations (including imported coal based at coastal locations).  The share of power generation from various sources as on 31.3.2014 is as follows:


  1. Thermal                                               :                       69.23%
  2. Hydel (Renewables)                           :                       16.68%
  3. Other Renewables Energy Sources     :                       12.12%
  4. Nuclear                                                :                         1.97%