New Delhi: At a time, when the Indian power sector is facing a funding shortage of over $104 billion, the government has said that saving of power through the energy-efficiency methods could save investments of up to $25 billion in the sector.

"An improvement of 20 percent energy efficiency can help avoid capacity addition of around 30,000 megawatts (MW). This, in turn, can save investments worth $25 billion," said Power Minister, Sushil Kumar Shinde. Lower energy efficiency has put a pressure on realization of power capacity in India. The Minister also added that while only half of the capacity addition targets were met in the Eighth, Ninth and Tenth Plan periods, his Ministry would ensure that the current Plan's target of 78,700 MW was met. He had earlier said that only 60,000 MW of this target would be met.

Shinde also said that the Ministry would soon float a separate energy efficiency company - Energy Efficiency Services (EESL), which would have an equity base of Rs. 190 crore. The new company's equity would consist of equal participation from four power public sector undertakings (PSUs) - NTPC, PowerGrid Corporation, Power Finance Corporation and Rural Electrification Corporation.