A combination of population growth, continual improvement in living standards and increased industrial activities has drastically broadened the gap between demand and supply in the energy sector. Although the total generation capacity of our country has registered about 75 fold growth in generation since independence, the country needs to add another 1,00,000 MW to fulfill the target of “ Power on demand by 2012 ”. It is well excepted that to meet the requirement, we need to install new power generating units. Moreover, augmentation of power generation capacity of the old power plants by judicial renovation and modernization can significantly contribute to achieve the target. Renovation and modernization of existing power plants is economical as compared to setting up a greenfield project and is a more viable option. This involves less gestation period and low cost.