Power generation industry in the country is over a century old. Merely twenty years after the first commercial launch of the light bulb and just fifteen years after the first country in the world, United States of America started generating power in New York, India’s Calcutta Electric Supply Corporation (now CESC Ltd) pioneered the generation of electricity in the country. In 1899, it commenced power generation and distribution in Kolkata.
Today, with a population of 1.2 billion, around one sixth of the world lives in India. Basic infrastructure facilities are the determinants of the quality of life of this vast community. Not only does infrastructure impact their living conditions, it also determines their earning capacity and economic opportunity. It is in this context the power sector has been viewed as a bottleneck for the inclusive growth of India. Adequate and quality power has not been available all across its vast geography. Where available, it is not consistently assured.
About 35% of the households in the country do not have access to electricity. Even while accounting for 17 per cent of the global population, India constitutes only 4 per cent of the global energy consumption. India's per capita electricity consumption of around 733 kWh is far lower than the world average of 2429 kWh. Even within the country there are wide variations in electricity consumption per capita, ranging from Gujarat's 1615 kWh to Bihar's 122 kWh. It is clear that we are far behind the ideals envisioned in the National Electricity Policy (2005), namely complete removal of electricity demand deficit by 2012 and a per capita electricity consumption of 1000 units by 2012.
India's GDP elasticity of electricity consumption is around 0.9, which means that to achieve a 9% increase in GDP in the 12th Plan period and beyond, the electricity consumption has to increase at over 8%. Considering the above disparities, India faces an enormous challenge to meet its long term energy requirement and support the planned growth rate of the economy.
In line with the Integrated Energy Policy (Planning Commission, 2006), APP believes the challenge can be met through a coherent approach, which develops all available energy resources. Affordable and uninterrupted power to all is the need of the hour and APP sees in its role a crucial responsibility to partner with the Government to achieve the national priority of "Power to All".