The central government s set itself a target of adding 88,000 MW power capacity by the year 2017, in order to address the acute shortage go power supply in several states in the country.

Nuclear power is set to contribute about 5,300 MW to the total capacity addition in the country in the next five years. The country currently has a power generation capacity of 200,000 MW. Estimates show that shortfall reach 10 per cent in peak times.

India union power minister Sushilkumar Shinde said in a conference of state power ministers in the capital that the authorities will have to work to address the issue of fuel supply for power generation. He said that the banks in the country have agreed to covert SEB loans into equity and the National Electricity Fund will offer interest subsidy to discoms for two years.

"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.

Some of the power distribution companies (discoms) are facing difficult financial conditions in states including Uttar Pradesh, Tamil Nadu, Rajasthan, and Punjab and others. Deputy chairman of the Planning Commission Montek Singh Ahluwalia said that weak financial health of discoms is a majo concern for the government.