India is the world’s fifth largest electricity generator with total installed capacity of 2,28,722 MW. Out of this, 90,062 MW is from state owned utilities, 72,927 MW is from privately owned utilities and 65,733 MW is from central owned utilities. The pace of investment from private players is considerable which shows an encouraging environment for the electricity sector. India’s energy demand has been growing rapidly in the last two decades. This demand has been boosted by industrial growth as well as a rise in household consumption. On the other hand, supply of energy too has grown but has been outstripped by demand. India derives most of its electricity from fossil fuels; primarily from coal (India has 20,381 MW of capacity on coal which is 59% of total capacity). India also derives considerable amount of electricity from hydro power sources.
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