On the other hand the Planning Commission wanted the target to be 1,00,000 MW, as the power demand is very high.
"It is likely (target) to be at 90,000 MW, both sides have agreed, it would be finalised soon," a Power Ministry official told PTI.
India added nearly 55,000 MW of power during the 11th Plan period ended in March 2012, much lower than the revised target of 62,000 MW. Initially, the additional power generation capacity was projected at 78,577 MW.
Power Ministry had earlier this year said it would not be able to meet its target for the 11th Plan due to environmental issues and coal and gas shortages.
Power projects being executed by state-owned hydro-power generation company NHPC, which were scheduled for commissioning during the current Plan, would now start electricity generation in the 12th Plan.
NHPC's 2,000-MW Subansiri project in Assam and 3,000-MW Dibang project in Arunachal Pradesh are still awaiting environment clearances.
Thermal projects are expected to account for more than 50,000 MW of capacity addition during 2012-17.
NTPC, country's largest power generation utility, has also said it may fall short of its target of becoming a 75,000 MW company by 2017.
The company has said that if the current coal crisis prolongs for a couple of more months, it may not be able to add 12,500 MW of thermal power to its installed capacity during the current XIIth plan period.
NTPC currently has an installed capacity of over 38,000 MW from all sources of energy.
Meanwhile, the Working Group on Power for formulation of the 12th Plan has estimated the total fund requirement for the power sector during the period at Rs 13.72 lakh crore.
Of the total amount, power generation would need around Rs 6.38 lakh crore, while the requirement for electricity distribution has been pegged at Rs 3.06 lakh crore.