Private sector accounts for over half of India’s total power generation capacity: Minister Naik

Most renewable energy projects in India are being developed by private sector companies selected through a transparent bidding process.

The private sector controls over 52 per cent of the country’s total installed power generation capacity of 446 GW, playing a significant role in the industry, Minister of State (MoS) for Power Shripad Yesso Naik informed the Lok Sabha on Thursday in a written reply. He noted that “the private sector is playing a crucial role in India’s power generation. Generation is a de-licensed activity under the Electricity Act, 2003, and 100 percent Foreign Direct Investment (FDI) in the power sector is allowed for all sources of generation (excluding atomic energy).”

The minister added that most renewable energy projects in India are being developed by private sector companies selected through a transparent bidding process. Informing in the Lok Sabha he updated that, As of 30 June 2024, the total installed capacity in the country is 446,190 MW, with the private sector owning approximately 234,065 MW or 52.5 per cent. 

In a separate response to another question in the Lok Sabha, the minister mentioned that India’s plan to add 80 GW of thermal power capacity by 2031-32 will require an investment of ₹ 6.67 lakh crore. The government focuses on making the power sector financially viable to attract further investment.