Amidst stable economic growth,
rising consumerism, and rapid
urbanization and industrialization, there is a strong demand
for electricity in the country. In fact, power is one of the most critical components
of infrastructure affecting the economic development and wellbeing of
nations. Power stations are a symbol of how rapidly the economy is expanding.
Although there has been progress in power generation, the growth in demand
for electricity has overtaken the generation capacity, and shortage of power
continues to exist. As the economy would soon enter the double-digit growth path,
the power sector is particularly important to achieve high economic growth.
India's power sector has the fifth largest electricity generation in
the world and third largest transmission and distribution network, with an
installed capacity of 1,64,508 magawatt (MW), which is about 4% of
global power generation. The top four energy consumption countries, the US,
Japan, China and Russia, together consume about 49% of the total power
generated globally. Over the last five decades,
the sector has made significant progress, and the overall electricity
generation has increased phenomenally. However, the ever-growing demand from
increased manufacturing activities and a rapidly growing consumer base has
led to a condition where the supply of energy falls short of the demand.
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