Power is one of the essential requirements in the modern world. Power sector in India has been playing an important role in the robust industrial, agricultural and overall economic development of the country. The growth of the economy depends on the availability of reliable and quality power at competitive rates. The demand for power in India is enormous and is growing steadily. The budget 2010-11 has given special emphasis to the energy sector and accorded the highest priority to capacity addition in power sector. The government has also been putting extra efforts to set up a new and renewable energy sector with the intent to establish India as a global leader. The availability of affordable and quality power is essential to achieve the targeted Gross Domestic Product (GDP) of 5-9% per annum.
The installed capacity generation in India increased from 1,362 MW to 147,965 MW in 2009, registering a compounded annual growth of at least 8%. However, the growth is not commensurate with the increasing demand, i.e., 830,554 MW.
As per the Indian Constitution, the power sector is the subject and joint responsibility of the State and Central governments. Of the total power generation capacity, the State and Central governments account for 58% and 32% respectively, and the private sector accounts for about 10%. The private sector had a small, but growing presence in power distribution and made its entry into the Transmission Power Sector, which was mainly funded by the private sector in 1991. The 17th electric power survey conducted by the Central Electricity Authority has estimated the energy requirement as 975.222 MW during the peak seasons and 157.107 MW by the end of 11th Plan (i.e., 2012) in India. As far as the State of Andhra Pradesh is concerned, it is presently facing energy shortage of about 44%, which is estimated to reach a peak demand of 14,721 MW by the end of the 11th Plan. In this scenario, there is a need to increase the performance of the power sector in India as a whole, and Andhra Pradesh (AP) in particular. For an in-depth examination of the performance of the power sector, the Andhra Pradesh Power Generation Corporation (APGENCO) Ltd., which is one of the biggest Power Generation Corporations of AP, has been chosen for an empirical analysis. An attempt is made in this study to evaluate the performance of the APGENCO Ltd., focusing on the key areas of demand and supply of power both at the state and the national levels. It also highlights the sector-wise power consumption in AP, installed capacity and power generation and its cost of the selected sample of APGENCO for the period of study.
The paper first presents a review of literature of the power sector, the database and methodology used in the study and presents the genesis of a sample company. The paper then concentrates on the performance of APGENCO and gives its major findings and results before finally concluding.
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