The Indian power sector has grown significantly since 1947 and India today is the third largest producer of power in Asia. The power generating capacity has increased from 1,362 MW in 1947 to over 160,000 MW by mid of 2010. Despite significant growth in electricity generation over the years, the shortage of power continues to exist primarily on account of growth in demand for power outstripping the growth in generation and capacity additions in power generation.
Historically, India has experienced shortages in energy and peak power requirements. The average energy deficit was 9.1 percent and the average peak power deficit was 12.8 percent between 2003 and 2010. The gap between demand and supply has not decreased in the last few years, leading to persistent power shortages.
Source: CEA, Power Scenario at a Glance, July 2010