India has asked power companies to buy equipment worth USD 33 billion this year to add more coal-fired power in the years ahead. This move is meant to help the country meet its growing electricity demand. The government wants to speed up the process by encouraging major power companies to order the necessary equipment.

These companies include state-run NTPC, SJVN, and private companies Adani Power and Essar Power.

The plan is to add 31 gigawatts (GW) of power in the next 5-6 years, which is a big increase compared to previous years. Normally, power companies decide when to order equipment, but the government wants to change that this year.

The Power Minister, Manohar Lal, discussed this plan at a meeting last month, right after Prime Minister Narendra Modi’s federal cabinet was formed. The country’s power demand has increased due to rapid economic growth and heat waves. In June, India faced its biggest power shortage in 14 years. To deal with this, the country delayed plant maintenance and required companies to run plants using imported coal and power.

State-run Bharat Heavy Electricals Ltd (BHEL) is expected to get most of the contracts for the new equipment, as it won all the power equipment contracts in auctions last year. Larsen & Toubro, the only other power equipment producer, did not participate in most of last year’s bids.