Indian power minister Sushilkumar Shinde made a strong pitch for US investment in the growing power sector in India on Tuesday, asserting that lucrative opportunities were available to investors.

He was speaking at the US-India Economic Opportunities and Synergies Summit in Chicago organised by FICCI in association with The Executive Club Of Chicago at the Fairmont Hotel here.

Shinde said the average plant load factor (PLF) of Indian generation units improved to 77.5 per cent during 2009-10 from 73.6 per cent in 2006.

The contribution of the private sector to India's electricity output has grown from 11.6 per cent in 2006 and further to 30 per cent as of date and is likely to go up by about 60 per cent in the 12th plan (2012-2017), he said.

Shinde told reporters at a press conference that during 2010-11, 15,795 MW of power got synchronized and 12,161 MW commissioned, which was the highest-ever capacity addition achieved in a single year since Independence.

"80,000 MW is under construction as of now -- such a huge amount," Shinde said.

"Per capita consumption of electricity has grown from 600 kwh to 785 kwh in a span of five years," FICCI senior vice-president R V Kanoria told reporters.

However, while "Infrastructure has not grown, India has grown," Kanoria added.

Shinde said while the present installed generation capacity in India is more than 1,81,000 MW, over 80,000 MW of new power capacity is under construction.

He added that during the forthcoming 12th Five-Year Plan (2012-2017), the funding requirement of the Indian power sector has been estimated at USD 230 billion.

He said that international majors like Mitsubishi, Toshiba, Hitachi, Alstom and Ansaldo have already started the process of partnering with Indian manufacturers to set up super critical manufacturing facilities.

On the renewable energy front, Shinde said that India has launched the Jawaharlal Nehru National Solar Mission and is committed to adding 20,000 MW of solar power by 2022.

He said State Electricity Regulatory Commissions (SERCs) are mandating minimum Renewable Purchase Obligations (RPOs) for Discoms and a mechanism for trading renewable energy certificates (RECs) through power exchanges has been operationalised in India.

Addressing the concerns of investors on the financial health of distribution companies, the minister said an "Accelerated Power Distribution and Reforms Programme (APDRP)" has been launched in urban areas, the main objective of which is to bring down the aggregate technical and commercial (AT&C) losses by around 15 per cent.

He said the budget for the R-APDRP programme during 2007-2012 is about USD 11 billion.

With regard to energy efficiency, Shinde said the Indian government has given due emphasis on this issue.

Stating that 37 energy service companies (ESCOs) have been accredited by the Bureau of Energy Efficiency (BEE), he said tremendous opportunities exist for Foreign ESCOs operating either independently or in JVs for taking up energy efficiency projects.

He said it is estimated that an investment of USD 15 billion is required on energy efficiency initiatives in India.

Shinde said that in order to improve confidence among the financial institutions, a robust energy audit system has been created.

He added that a Partial Risk Guarantee Fund and Venture Capital Fund are being created for boosting investments in the area of energy efficiency and a National Mission on Enhanced Energy Efficiency has been approved.

Shinde is on a five-day visit to the USA, which aims at enhancing cooperation between the two countries in the power sector.

He will also go to New York, where besides addressing the press conference organised by the Counsel General of India, he will meet chief executive officers of various organisations, organised by the United States-India Business Council (USIBC).

He will also deliver the keynote closing address at the 8th Annual India Investment Forum.