New Delhi: Faster land procurement and increase in coal production will help India achieve the 88,000 MW capacity addition target in the next five years, Power Minister Sushilkumar Shinde said on Tuesday.

"With the target of about 88,000 MW, which includes 5,300 MW from the nuclear power proposed during the current plan period (2012-17)...we will have to address the issue of fuel availability and equally important is the issue of finding adequate land for setting up new power stations," Shinde said at a meeting of power ministers of the states with the Planning Commission.

He said, "More projects would move faster if the state governments play a proactive role in identifying and facilitating the procurement of land."

Besides, the focus in the 12th Plan period ( 2012-17) has to be on increasing domestic coal production, he added.

The problem of land is no less in the setting up of the transmission infrastructure, given the fact that in the current plan period we have a target of erecting some 37,800 MW of inter-regional transmission capacity, Shinde said.

He demanded a greater and effective role from the state government in dealing with issues connected with the development of hydro energy.

Shinde said that the financial health of distribution companies is a matter of grave concern.

"The single biggest challenge to the viability and sustainability of the power sector is the deteriorating financial health of the distribution utilities in most states," he added.


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