Madhya Pradesh has emerged as a model state in the energy sector. Works worth Rs 60,000 crore have been done in the state under power sector reforms. Madhya Pradesh has become self-reliant in the power sector and is prominent among the states regarded as power-surplus. Due to increase in power generation in the past few years, Madhya Pradesh has carved its identity as a power-surplus state. A number of power sector reforms have been done to ensure supply of quality power to consumers. A number of important decisions have also been taken in the power sector to bring relief to drought-hit farmers. The state government has paid special attention to better maintenance of power plants, distribution and power management.

Intensive efforts have been made to bridge the gap between increasing power demand and availability. Now, the state’s total power capacity has increased to 15,400 MW. This year, 9,832 MW power was supplied to meet peak hour demand on 20 October 2015. As per existing power purchase agreements, Madhya Pradesh will continue to be self-reliant in power sector till 2022. This year, there are arrangements for supplying over 10,000 MW power.

During 2014-15, lines measuring 1,187 km were laid and ultra high tension sub-stations of 4,294 MVA capacity were set up. In all the 51 districts, 24X7 power is being supplied and farmers are getting uninterrupted power for 10 hours daily under the Atal Jyoti Abhiyan.

Madhya Pradesh has turned into a major manufacturing hub in the country.

Alternative energy sector booming

Madhya Pradesh has accelerated efforts in the field of alternative power generation. These efforts have yielded encouraging results. This is the reason that Madhya Pradesh is among the three top states in the solar energy sector after Gujarat and Rajasthan. The state has immense potential of alternative sources of energy. According to a recent survey, the state has potential to install 19,000 MW wind energy projects, 1,500 MW biomass energy, 750 minor hydel projects and over 8,000 MW solar energy projects. From new and renewable sources, Madhya Pradesh generated only 30 MW till 2004, which has increased to 1,660 MW in 2015. As many as 279 renewable energy projects are under construction in the state. These include 148 wind energy projects of 6,400 MW, 51 solar power plants of 1,500 MW, 16 biomass projects of 165 MW and 49 hydel power plants of 272 MW capacity. The country’s biggest and world’s third largest 130 MW solar energy project had commenced at Diken village in Neemuch district from February 2014. It was completed eight months before schedule.

The world’s largest solar power project is being set up at Gurh in Rewa district. Under the Solar Energy Park Policy, the 750 MW ultra mega solar power plant will be completed by March 2017 and will cost Rs 4,500 crore.

Incentive to investors

A number of decisions have been taken to motivate investors to invest in the renewable energy sector in the state. Investors are given concessions in VAT and entry tax, status of industry to units set up in the alternative energy sector, exemption from stamp duty on purchase of private land and making available government land for 25 years. As a result of these policies, Madhya Pradesh has received proposals to set up 10,000 MW projects.


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