Power: India, 1

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[[Category: Economy-Industry-Resources|P]]
 
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==The main source of this article==
 
''' INDIA 2012 '''
 
 
A REFERENCE ANNUAL
 
 
'' Compiled by ''
 
 
RESEARCH, REFERENCE AND TRAINING DIVISION
 
 
PUBLICATIONS DIVISION
 
 
MINISTRY OF INFORMATION AND BROADCASTING
 
 
GOVERNMENT OF INDIA
 
 
=POWER=
 
 
Power development in India commenced at the end of the 19th century with the
 
commissioning of electricity supply in Darjeeling during 1897, followed by the
 
commissioning of a hydropower station at Sivasamudram in Karnataka during 1902.
 
In the pre-Independence era, the power supply was mainly in the private sector,
 
that too restricted to the urban areas. With the formation of State Electricity Boards
 
during Five-Year Plans, a significant step was taken in bringing about a systematic
 
growth of power supply industry all over the country. A number of multi-purpose
 
projects came into being, and with the setting up of thermal, hydro and nuclear
 
power stations, power generation started increasing significantly.
 
 
The Ministry of Power is primarily responsible for the development of electrical
 
energy in the country. The Ministry is concerned with perspective planning, policy
 
formulation, processing of projects for investment decisions, monitoring of the
 
implementation of power projects, training and man-power development and the
 
administration and enactment of legislation with regard to thermal and hydro power
 
generation, transmission and distribution. In all technical matters, the Ministry of
 
Power is assisted by the Central Electricity Authority (CEA).
 
 
The construction and operation of generation and transmission projects in the
 
Central sector are entrusted to Central Sector Power Corporations, viz.,
 
 
the National
 
Thermal Power Corporation (NTPC),
 
 
the National Hydroelectric Power Corporation
 
(NHPC),
 
 
the North-Eastern Electric Power Corporation (NEEPCO), and
 
 
the Power
 
Grid Corporation of India Limited (PGCIL).
 
 
The Power Grid is responsible for all
 
the existing and future transmission projects in the Central Sector and also for the
 
formation of the National Power Grid.
 
 
Two joint-venture power corporations,
 
namely, Satluj Jal Vidyut Nigam (SJVN) (formerly known as NJPC) and Tehri Hydro
 
Development Corporation (THDC) are responsible for the execution of the Nathpa
 
Jhakri Power Project in Himachal Pradesh and Projects of Tehri Hydro Power
 
Complex in Uttarakhand respectively.
 
 
Three ''' statutory bodies,'''  i.e., the Damodar
 
Valley Corporation (DVC), the Bhakra-Beas Management Board (BBMB) and Bureau
 
of Energy Efficiency (BEE), are also under the administrative control of the Ministry
 
of Power.
 
 
Programmes of ''' rural electrification ''' are provided financial assistance by
 
the Rural Electrification Corporation (REC).
 
 
The Power Finance Corporation (PFC)
 
provides term-finance to projects in the power sector.
 
 
The ''' autonomous bodies '''
 
(societies), namely, Central Power Research Institute (CPRI) and the National Power
 
Training Institute (NPTI) are also under the administrative control of the Ministry
 
of Power.
 
 
A Power Trading Corporation has also been incorporated primarily to
 
support the Mega Power Projects in private sector by acting as a single entity to
 
enter into Power Purchase Agreements (PPAs).
 
 
==Capacity Addition==
 
Based on the 10th Plan actual capacity addition of 21,180 MW and preparedness of
 
projects, the Planning Commission had initially fixed a capacity addition target of
 
78,700 MW during the 11th Plan to meet the power requirement of the country. This
 
comprised hydro, thermal and nuclear capacity of 15,627 MW, 59,693 MW and
 
3,380 MW respectively. The Central Sector was to contribute 36,874 MW (Thermal
 
24,840 MW), the State Sector 26,783 MW (Thermal 23,301 MW) and Private Sector
 
15,043 MW (Thermal 11, 552 MW) in the 11th Plan. Keeping in view the stage and
 
pace of construction of power generation projects and their likelihood of
 
commissioning during the remaining period of the 11th Plan, this has been revised
 
to 62,374 MW by the Planning Commission at the time of Mid-Term Appraisal
 
comprising 8, 237 MW Hydro, 50,757 MW Thermal and 3,380 MW Nuclear projects
 
with 21,222 MW in Central Sector, 21,355 MW in State Sector and 19,797 MW in
 
Private Sector.
 
 
Up to 31st May, 2011, 35,747 MW of capacity has been added in the 11th Plan
 
comprising 10,450 MW in Central Sector, 12,971 MW in State Sector and 12,326
 
MW in Private Sector. This is 169% of the total capacity added during the 10th Five
 
Year Plan.
 
 
The installed power generation capacity has increased from about 1,400 MW
 
in 1947 to 1,74,361 MW as on 30.04.2011 comprising 37,567 MW hydro, 1,13,559
 
MW thermal including gas and diesel, 4780 MW Neclear based power plants and
 
18,455 MW from renewable energy sources including wind.
 
 
==Power Generation==
 
Power generation during 2010-11 was 811.14 BU comprising 665.01 BU Thermal,
 
114.26 BU from Hydro, 26.27 BU from Nuclear and 5.61 BU import from Bhutan.
 
The target of power generation for the year 2010-11 was fixed at 855 BU. The Plant
 
Load Factor (PLF) has shown a steady improvement over the years and has improved
 
from 52.8 per cent in 1990-91 to 77.53 per cent in 2009-10 and reduced to 75.08% in
 
2010-11.
 
 
==50,000 MW Hydro Electric Initiative==
 
Under the 50,000 MW Initiative launched by the Government in 2003-04, 162 hydroelectric
 
projects spread in 16 states for the purpose of preparation of Preliminary
 
Feasibility Reports (PFRs) were taken up by CEA as nodal agency. The PFRs were
 
completed in September 2004 for all these projects with an installation of 47,930
 
MW.
 
 
As a follow up of preparation of PFRs, preparation of DPRs for these schemes
 
had been taken up, thereby providing a shelf of projects for execution in the near
 
future.
 
 
Out of 162 schemes (47930 MW), DPRs for 28 schemes (10093 MW/Revised
 
capacity 9594 MW) have already been prepared (upto April,2011). The work of
 
Survey & Investigation is under progress for another 31 schemes (17093 MW).
 
 
==Hydro Capacity Addition during 12th Plan==
 
To meet the requirement of additional capacity during the 12th Plan (2012-17), a
 
shelf of 87 candid hydro projects having aggregate capacity of 20334 MW (excluding
 
slippages from 11th Plan) was prepared. The no. of projects have been reduced due
 
to merger and deletion of some projects and change in installed capacity during
 
S&I and preparation of DPR. With the incorporation of the above changes, 83 projects
 
(22011 MW, excluding slippages from 11th Plan) have been identified as candidate
 
projects for benefits during 12th Plan.
 
 
==Setting up of Ultra Mega Power Project==
 
Ultra Mega Power Projects (UMPPs) are being promoted with a view to providing
 
power to all at a reasonable rate and ensuring fast capacity addition by the Central
 
Government as an initiative facilitating the development of Ultra Mega Power
 
Projects (UMPP) of 4000 MW capacity each under tariff based international
 
competitive bidding route. Project specific Shell Companies (Special Purpose
 
Vehicles) as 100% subsidiries of Power Finance Corporation Limited have been
 
created for carrying out developmental work consisting of the tie up of inputs/
 
clearances and the bidding process for selection of developers for the UMPPs.
 
 
So far, four UMPPs, namely, Sasan in M.P., Mundra in Gujarat, Krishnapatnam
 
in Andhra Pradesh and Tilaiya in Jharkhand have been awarded and transferred to
 
the developers selected through tariff based competitive bidding. Two units of 800
 
MW each of Mundra UMPP are expected to be commissioned in 11th Plan.
 
The request for Qualification (RFQ) bids have been issued for the UMPPs
 
proposed in Chhattisgarh and Odisha. In regard to UMPP in Tamil Nadu and second
 
UMPP of Andhra Pradesh, the sites have been finalized and the project development
 
work is in advanced stage.
 
 
==CENTRAL ELECTRICITYAUTHORITY==
 
Central Electricity Authority (CEA), a statutory organisation constituted under
 
Section 3(1) of the Electricity Supply Act, 1948 which has been superseded by Section
 
70 (1) of Electricity Act, 2003, plays an important role in formulating policies and
 
programmes for power development in the country and in planning and
 
coordinating various development activities in the Power Sector. The CEA advises
 
the Central Government on matters relating to the National Electricity Policy,
 
formulates short-term and perspective plans for development of the electricity
 
system and coordinates the activities of the planning agencies for optimal utilisation
 
of resources to subserve the interests of national economy and to provide reliable
 
and affordable electricity for all consumers.
 
 
Under the Electricity Act, 2003, the CEA makes regulations/standards on
 
matters such as construction of electrical plants, electric lines and connectivity to
 
the grid, installation and operation of meters, concurrence of hydro-electric schemes,
 
safety and grid standards. It also specifies measures relating to safety with respect
 
to electricity supply. This will inculcate higher efficiency in all fields of the power
 
sector.
 
 
The CEA is responsible for the concurrence of hydro power development
 
schemes of the Central, State and Private sectors taking into consideration the best
 
ultimate development of the river or its tributaries for power generation, consistent
 
with the requirement of drinking water, irrigation, navigation, flood control or for
 
other public purposes. It also makes studies for the optimum location of dams and
 
other river works keeping in view the norms regarding dam design and safety.
 
 
It promotes and assists in the timely completion of schemes and projects for
 
improving and augmenting the electricity system by carrying out a close monitoring
 
of the construction of generation and transmission projects to ensure their timely
 
completion by identifying bottlenecks and problem areas and initiating remedial
 
measures/actions. It lays stress on improving the performance of existing power
 
stations through better O&M practices, renovation and modernisation and life
 
extension programmes. It is also charged with the responsibility of monitoring
 
schemes/projects for their timely completion.
 
 
Collection and recording the data concerning the generation, transmission,
 
trading, distribution and utilisation of electricity and carrying out studies relating
 
to cost, efficiency, competitiveness, etc., are important functions of the CEA. It makes
 
public from time to time information secured under the Electricity Act, 2003 and
 
provides for the publication of reports and investigations.
 
 
The CEA advises Central Government, State governments and Regulatory
 
Commissions on all technical matters relating to generation, transmission and
 
distribution of electricity. It also advises State Governments, licensees or generating
 
companies on such matters which shall enable them to operate and maintain the
 
electricity system under their ownership or control in an improved manner and
 
where necessary, in coordination with any other Government, licensee or the
 
generating company owning or controlling another electricity system.
 
 
The CEA plays a lead role in promoting an integrated operation of Regional
 
Grid systems and the evolution of a National Grid. The Eastern, North-Eastern and
 
Western regions have been integrated and are operating in a synchronous mode.
 
The Eastern Region is connected with the Northern as well as the Southern Region
 
through HVDC back-to-back links. Similarly, the Western Region is also connected
 
with the Northern and the Southern Regions through the same arrangements. The
 
CEA facilitates exchange of power within the country from surplus to deficit regions
 
and with neighbouring countries for mutual benefits.
 
 
It promotes research in matters affecting the generation, transmission,
 
distribution and trading of electricity; carries out, or causes to be carried out, any
 
investigation for the purposes of generating or transmitting or distributing electricity
 
and promotes measures for advancing the skills of persons engaged in the electricity
 
industry. It actively participates in power supply restoration process in case of
 
occurrence of unfortunate incidents of destruction caused due to drought/cyclone/
 
floods/tsunami, etc., in various parts of the country.
 
 
The CEA makes a significant contribution to a number of professional fora in
 
India as well as abroad like the Conference International Des Grands Research
 
Electriques (CIGRE), the Bureau of Indian Standards (BIS), the Central Board of
 
Irrigation and Power (CBI&P), etc. The CEA renders consultancy services in the
 
planning and design of hydro, thermal and transmission projects.
 
 
==THE ELECTRICITY ACT, 2003==
 
The provisions of this Act have been brought into force with effect from 10 June
 
2003 (with this, the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948
 
and the Electricity Regulatory Commissions Act, 1998 stand repealed). The main
 
features of the Act are as follows:
 
 
(i) Generation has been delicensed and captive generation freely permitted.
 
Hydro projects would, however, need concurrence from the Central Electricity
 
Authority.
 
 
(ii) No licence required for generation and distribution in rural areas.
 
 
(iii) Transmission Utility at the Central as well as State level, to be a government
 
company – with responsibility for planned and coordinated development of
 
the transmission network. Provision for private licensees in transmission.
 
 
(iv) Open access in transmission with provision for surcharge for taking care of
 
current level of cross subsidy with the surcharge being gradually phased out.
 
 
(v) Distributing licensees would be free to undertake generation, and generating
 
companies would be free to take up distribution.
 
 
(vi) The State Governments are required to unbundle the SEBs. However, they
 
may continue with them as distribution licensees and State Transmission
 
Utilities.
 
 
(vii) Setting up of the State Electricity Regulatory Commissions (SERCs) made
 
mandatory.
 
 
(viii) An Appellate Tribunal to hear appeals against the decision of the CERC and
 
SERCs.
 
 
(ix) The SERCs are required to permit open access in distribution in phases with
 
surcharge for current level of cross subsidy to be gradually phased out along
 
with cross subsidies and obligation to supply.
 
 
(x) Metering of electricity supplied made mandatory.
 
 
(xi) Provisions relating to theft of electricity made more stringent.
 
 
(xii) Trading as a distinct activity recognised with the safeguard of the Regulatory
 
Commissions being authorised to fix ceilings on trading margins, if necessary.
 
 
(xiii) For rural and remote areas, stand-alone systems for generation and
 
distribution permitted.
 
 
(xiv) Thrust to complete rural electrification and provide for management of rural
 
distribution by panchayats, cooperative societies, non-government
 
organizations, franchisees, etc.
 
 
(xv) The Central Government to prepare a National Electricity Policy and Tariff
 
Policy.
 
 
(xvi) The Central Electricity Authority to prepare a National Electricity Plan.
 
Appellate Tribunal for Electricity
 
 
The Central Government established Appellate Tribunal for Electricity under the
 
Section, 110 of the Electricity Act, 2003 on 7 April 2004. The headquarters of the
 
Appellate Tribunal is at Delhi. The Appellate Tribunal will hear appeals against
 
orders of the Regulatory Commissions/ Adjudicating Officers.
 
==National Electricity Policy==
 
The National Electricity Policy has been notified by the Government under the Act.
 
Competitive bidding guidelines have been issued by the Government. The Tariff
 
Policy has been notified.
 
==Anti-Theft Legislation==
 
The States of Andhra Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh, West
 
Bengal, Maharashtra, Kerala, Gujarat, Bihar, and Punjab have passed/drafted antitheft
 
laws.
 
 
As per the provisions of Section 153 of the Electricity Act, 2003, special courts
 
dealing with power theft have been set up in the States of Assam, Andhra Pradesh,
 
Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka,
 
Madhya Pradesh, Maharashtra, Meghalaya, Manipur, Nagaland, Odisha, Punjab,
 
Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand,West Bengal
 
and Delhi.
 
 
==Redressal of Grievances of Consumers and Appointment of an Ombudsman==
 
As per the provisions of the Electricity Act, 2003, every distribution licensee shall
 
have to establish a forum for redressal of grievances of the Consumers in accordance
 
with the guidelines as specified by the State Electricity Regulatory Commission.
 
Consumer Grievances Redressal Forums have been established in 24 States by the
 
 
Distribution Companies as per Section 42 (5) of the Act. Every State Electricity
 
Regulatory Commission shall appoint or designate an Ombudsman as per Section
 
42(6) of the Act. Any consumer who is aggrieved by the non-redressal of his
 
grievances may make a representation for the redressal of his grievances to the
 
Ombudsman. So far, 24 State Electricity Regulatory Commissions have appointed
 
or designated an Ombudsman.
 
==ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME==
 
In order to improve sub-transmission and distribution system including reduction
 
of Transmission & Distribution losses, Central Government had given support in
 
the 10th plan in the form of APDRP scheme. There were two components of the
 
scheme—investment component to support capital investment and an incentive
 
component for actual cash loss reduction. Upto November 2009, total investment
 
component of Rs 7675.51 crore and total incentive component of Rs 2879.73 crore has
 
been released under APDRP.
 
 
The present status of restructured APDRP for 11th Plan is as follows:
 
 
===Re-structured APDRP for 11th Plan===
 
 
Cabinet Committee on Economic Affairs (CCEA) approved the 'Restructured
 
APDRP' for11th Plan as a Central Sector Scheme in its meeting held on 31 July 2008.
 
 
The focus of the programme is on actual, demonstrable performance in terms of
 
AT&C loss reduction. The aim of the scheme is to reduce the AT&C losses up to 15
 
per cent in project areas.
 
 
Projects under the scheme to be taken up in two parts.
 
 
Part-A is the projects
 
for establishment of baseline data and IT applications for energy accounting/
 
Auditing & IT based consumer service centres and
 
 
Part-B is regular distribution
 
strengthening projects.
 
 
The programme size is Rs51,577 crore. Expected investment in Part-A (Baseline
 
System) would be Rs10,000 crore and that in Part-B would be Rs 40,000 crore.
 
Power Finance Corporation (PFC) is the nodal agency for operationalising
 
the programme.
 
 
To facilitate the state utilities for expediting the implementation of R-APDRP,
 
Ministry finalized the model DPRs, empanelled the IT Consultants, IT implementing
 
Agencies, finalized the model Request of Proposal (RFP) for appointment of above
 
consultants and agencies.
 
 
===Present Status of R-APDRP===
 
Under Part-A of R-APDRP, 1403 projects at an Est cost of Rs 5167.87 crore have been
 
approved for 29-States/UTs and Rs. 1450.11 Crore have been disbursed till date.
 
Part-A SCADA projects for 28 towns of 6 states have also been sanctioned at
 
an Est. Cost of Rs. 669.10 crore and Rs. 154.52 crore have been disbursed.
 
 
Under Part-B of R-APDRP, 832 projects at the cost of Rs. 15974.56 crore have
 
been approved for 14 States and Rs. 2236 crores have been disbursed.
 
(Source : RAPDRP web site)
 
 
===Selection of Sites for Thermal Power Projects===
 
In the context of the need to set up additional thermal power stations to meet the
 
power requirements of the country up to the year 2012, and beyond, the CEA had,
 
in September 2001, constituted a committee under the Chairmanship of Member
 
(Thermal) and consisting of members from different Ministries/Deptts./SEBs, etc.,
 
for selection of sites for large coastal/Pithead and other Thermal Power Stations.
 
As the process of selection of sites is of continuous nature, the above mentioned
 
Committee has been converted into a Standing Committee.
 
 
Teams consisting of the
 
members of the Committee from the CEA, Planning Commission, MoE&F, CMPDI,
 
Railways, etc., are being constituted for visiting from time to time the sites tentatively
 
identified by the State agencies. These teams also interact with various State/Central
 
departments for assessing the availability of various inputs like land, water,
 
fuel, etc.
 
 
Based on the site visits of the Site Selection Committee and also reports obtained
 
by CEA with assistance of CMPDI/NRSA through satellite mapping, a large shelf
 
of potential sites has been created. Many sites from this shelf have been identified
 
for benefits during the 11th Plan.
 
 
=Cross-border power trade=
 
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Daily-spark-missing-in-Indias-intl-power-trade-23072015018021 ''The Times of India''], Jul 23 2015
 
 
Sanjay Dutta
 
[[File: cross-border power trade.jpg|India’s current electricity trade; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Daily-spark-missing-in-Indias-intl-power-trade-23072015018021 ''The Times of India''], Jul 23 2015|frame|500px]]
 
 
''' Neighbours still can't buy from spot market '''
 
 
'' Daily spark missing in India's int'l power trade ''
 
 
India has emerged as a hub of South Asian transmission network but the daily spark of dayahead trading is missing in its cross-border power trade due to regulatory hurdles.
 
Indian power exchanges have petitioned the Central Electricity Regulatory Commission to open the doors to spot buyers from neighbouring countries as millions of units go waste at home due to busy transmission lines or poor appetite of financially stressed state utilities.
 
 
Tata Power has petitioned the regulator for permission to import power from its 126 MW Dagachhu hydel project in Bhutan through the Indian exchanges for sale in India till bilateral contracts are signed. Industry sources say there are consumers in Nepal and Bangladesh, countries with large unmet demand, willing to buy power from the Indian spot market.
 
 
But for the regulator, it is a grey area as the existing policy does not reflect the chang ing reality of expanding interlinks with neighbouring countries and power projects coming up in Bhutan and Bangladesh with Indian private investments. The government is examining the new reality and at least Tata Power's case is awaiting the foreign ministry's approval. The Indian grid is connected with Bhutan, Bangladesh and Nepal. Plans for establishing interlinks with Pakistan and Sri Lanka have remained enmeshed in the complexities of bilateral politics. Trade through the existing interlinks is guided by bilateral arrangements between governments. There is no third-party transit through the Indian network. In dia imports power from hydel projects it has set up in Bhutan and supplies electricity from a central pool to Nepal and Bangladesh.
 
 
The Dagachhu hydel project is the first of several private projects being built on foreign soil for supplying to local market, India or a third country. Reliance Power and Adani group recently inked deals for large power plants in Bangladesh. The petitions by power exchanges point out that the ground is ready for cross-border trading because of financial and regulatory similarities in electricity markets of the interlinked countries.
 
 
Initially, the volumes are expected to be small due to limited interlink capacity.But, with plans for their expansion, a full-on regional power market is just round the corner, much in line with the scenario in Europe.
 
 
India, with a rapidly expanding generation capacity -estimated at 2.72 GW (giga watt) at last count -and surrounded by deficit countries, can be in the driver's seat only if it moves fast.
 
 
=PRIVATE SECTOR PARTICIPATION IN POWER SECTOR=
 
Hydro Power Policy, 2008 lays emphasis on increasing private investment in power
 
development. The State Governments have offered a number of hydro-electric
 
schemes for development in private sector. The present status (as on 30.04.2011) of
 
participation of private sector in hydro power development (H.E. Projects having
 
installed capacity above 25 MW) is as under:
 
 
[[File:  powerindia.PNG||frame|500px]]
 
 
 
==THERMAL GENERATION PROJECTS==
 
 
With the enactment of Electricity Act, 2003, a whole new system was evolved where
 
private players were invited to be an active participant in the power sector. The
 
Electricity Act, 2003 has created a legal framework for development of electricity
 
supply industry through liberalized generation, market development and providing
 
non-discriminatory open access to the generators and consumers. In order to achieve
 
these objectives, the Government has issued National Electricity Policy and Tariff
 
Policy. In order to facilitate procurement of power through competitive bidding,
 
the Government has issued guidelines for tariff based competitive bidding.
 
 
The
 
Standard Bid Documents for procurement of power under long term and medium
 
term PPAs have been notified for Case I and Case II bidding. The Government has
 
also set up Special Purpose Vehicle under Power Finance Corporation (PFC) for
 
collective procurement of power on behalf of the distribution utilities by inviting
 
tariff based bids for supplying power from ultra mega power projects. Procurement
 
of power through tariff based bidding does not require any upfront capital
 
investment by the Government and the responsibility of mobilizing financial
 
resources and technical resources for operating generating facilities rests with the
 
projects developer/independent power producer.
 
 
The private sector has responded enthusiastically to the opening up of the
 
power market and a substantial amount of generating capacity is coming up through
 
IPPs in coal, lignite, gas and hydro power projects. Government of India is making
 
its best efforts to facilitate this process to help the independent power producers to
 
overcome various challenges in the way of project implementation. The private
 
sector contributed 2,670 MW to generation capacity during period 2002-07. Since
 
then, capacity of 11041 MW has been commissioned till 31.3.11 and another about
 
9253 MW capacity is under construction and likely to be commissioned by 2012.
 
 
The private sector is likely to contribute substantial generating capacity during 12th
 
Plan period (2012-17).
 
 
==Transmission Sector==
 
Efforts are being made to bring competition in development of inter-State
 
transmission system through private sector participation. In this direction, two
 
schemes namely - 'Western Region System Strengthening-II-B' and 'Western Region
 
System Strengthening II-C' were taken up for implementation through 100 per cent
 
private participation. The process of selection of the private sector company was
 
coordinated by PGCIL under directions of CERC. The Transmission Service
 
Agreement (TSA) for the schemes have been signed and the schemes are being
 
implemented by Reliance Power Transmission Limited.
 
 
For encouraging and streamlining the process of private sector participation,
 
Government of India brought out 'Guidelines for encouraging competition in
 
development of Transmission projects', 'Guidelines for Tariff based Competitive
 
bidding for Transmission services', Standard Request for Qualification (RFQ)
 
document for selection of transmission Service provider, and TSA. An Empowered
 
Committee for selection of projects and monitoring their implementation was also
 
constituted.
 
 
Power Finance Corporation (PFC) and Rural Electrification Corporation (REC)
 
have been nominated as nodal agencies to act as Bid Process Coordinators (BPC)
 
for the selection of Transmission Service Providers.
 
 
LoIs have been issued to the successful bidders for :
 
 
l Transmission system enabling import of NER/ER Surplus power by NR.
 
 
l North Karanpura Transmission System.
 
 
l Talchar-II Transmission scheme.
 
 
RFQs have been issued for three transmission projects, namely :
 
 
l System Strengthening for WR.
 
 
l System Strengthening Commission for WR & NR, and
 
 
l Transmission system associated with Krishnapattanam - UMPP -
 
 
Synchronous inter connection between SR & WR.
 
 
==Revised Mega Power Policy==
 
Mega Power Policy was introduced in November 1995 for providing impetus to
 
development of large size (mega) power projects in the country and derive benefit
 
from economies of scale. These guidelines were modified in 1998 and 2002 and
 
were last amended in April 2006 to encourage power development in Jammu &
 
Kashmir and the North-Eastern region.
 
 
However, in the wake of several important statutory and policy level changes
 
in the power sector, Ministry of Power revisited some of the provisions of the Mega
 
Power policy in December 2009.
 
 
The modified policy seeks to rationalize the procedure for grant of mega
 
certificate and facilitate quicker capacity addition. The mega power policy would
 
have positive impact in the form of lower generation cost and resultant cost of power
 
purchased by distribution utilities and has liberalized many provisions including
 
aligning the requirements of PPA as per National Electricity Policy and National
 
Tariff Policy.
 
 
==Automatic approval for FDI==
 
Automatic approval (RBI route) for 100 per cent foreign equity is permitted in
 
generation, transmission, and distribution and trading in power sector without any
 
upper ceiling on the quantum of investment.
 
 
As per information received from Central Electricity Authority (CEA), power
 
projects totalling to 15043 MW (Thermal: 11552 MW and Hydro : 3491 MW) in
 
private sector have been targeted for commissioning during the 11th Plan. Out of
 
the above, a thermal capacity addition of about 5920 MW has been achieved till 1
 
April, 2010.
 
 
=PUBLIC SECTOR UNDERTAKINGS AND OTHER ORGANISATIONS=
 
===National Hydroelectric Power Corporation Ltd.===
 
NHPC Limited (earlier known as National Hydroelectric Power Corporation Ltd.)
 
is a Schedule "A" Mini Ratna enterprise of the Government of India with an
 
authorised share capital of Rs 15,000 crore and an investment base of more than Rs
 
36,250 crore. NHPC was set up in 1975 and has now become the largest organization
 
for hydro power development in India, with capabilities to undertake all the activities
 
from conceptualization to commissioning of Hydro Projects.
 
 
The main objects of
 
NHPC include, to plan, promote and organize an integrated and efficient
 
development of power in all its aspects through conventional and non-conventional
 
Sources in India and abroad and transmission, distribution, trading and sale of
 
power generated at stations. The Company is also listed with the Bombay Stock
 
Exchange and National Stock Exchange. NHPC has signed an MoU with Rural
 
Electrification Corporation Ltd. (REC) for accelerated electrification of one lakh
 
villages and provide connection to one crore households and with the Ministry of
 
Rural Development for development and maintenance of rural access roads in six
 
districts of Bihar. Works are in progress on these schemes.
 
 
NHPC has so far commissioned 13 hydroelectric projects with an aggregate
 
installed capacity of 5,175 MW which includes 2 projects with total installed capacity
 
of 1,520 MW in Joint Ventue with Govt. of Madhya Pradesh. In addition to above,
 
NHPC has commissioned 3 projects namely Kalpong (5.25 MW) in Andaman &
 
Nicobar Islands, Sippi (4 MW) and Kambang (6 MW) in Arunachal Pradesh on
 
turnkey deposit basis. NHPC has also commissioned 2 projects, viz. Devighat in
 
Nepal with a capacity of 14.1 MW and Kurichu in Bhutan with a capacity of 60 MW
 
the aggregate capacity of 74.1 MW on deposit / turnkey basis.
 
 
==NATIONAL THERMAL POWER CORPORATION LIMITED==
 
The NTPC Ltd. (formerly National Thermal Power Corporation Ltd.) was
 
incorporated in November 1975 with the objective of planning, promoting and
 
organising an integrated development of thermal power in the country. The company
 
has now been renamed as NTPC Ltd. In line with the changes taking place in the
 
business portfolio of the company that transformed the company into an integrated
 
Power Company, it has now a presence across the entire energy value chain.
 
NTPC Limited, a schedule 'A' Navratna company of the Government of India,
 
is the single largest power generator in India with comprehensive in-house
 
capabilities in building and operating power projects.
 
 
NTPC generation capacity
 
was 18.82 per cent of country's installed capacity as on 31 March 2009. NTPC
 
accounted for 28.60 per cent of the entire electricity generated in the country during
 
the year 2008-09. Current operating capacity of NTPC is 30644 MW comprising
 
25209 MW coal based stations and 5,435 MW gas based stations. This capacity also
 
includes 2,294 MW under joint ventures. Another 17930 MW generating capacity
 
is under construction, including 3 hydro projects. During the year 2009-10 (up to 30
 
November 2009), a record generation of 1,40,831 million units was achieved,
 
registering an increase of 7.25 per cent over generation of 1,31,312 million units
 
during same period in 2008-09.
 
 
During the year 2009-10 (up to 30 November 2009) thirteen NTPC coal stations
 
achieved more than 85 per cent PLF, including eight above 90 per cent and two
 
above 95 per cent; Dadri (Coal) (98.91 per cent), Korba (95.89 per cent), Unchahar
 
(94.61 per cent), Simhadri (94.34 per cent), Vindhyachal (94.14 per cent), Tanda (92.24
 
per cent), Rihand (92.05 per cent), Ramagundam (91.67 per cent), Sipat (89.92 per
 
cent), Singrauli (88.58 per cent), Badarpur (87.51 per cent), Talcher (Kaniha) (85.67
 
per cent) and Talcher (Thermal) (85.92 per cent).
 
 
During the year 2009-10 (April to September 2009), NTPC recorded a total
 
income of Rs 24302.75 crore(audited), and net profit after tax of Rs 4,345.57 crore
 
(audited), registering an increase of 17.62 per cent and 13.25 per cent respectively
 
over the same period last year. During the year 2009-10 (till November 2009), 500
 
MW generation capacity was commissioned comprising one unit of 500 MW (unit
 
No. 7) at Kahalgaon-II. The company is at present implementing eighteen power
 
projects with a capacity of 17930 MW.
 
 
An MOU has been signed amongst NTPC and the Govt. of Chattisgarh for
 
setting up 4000 MW Lara Power Project in the State of Chattisgarh as a regional
 
power project of NTPC. An MoU has been signed amongst NTPC Ltd., Govt. of
 
Madhya Pradesh and Madhya Pradesh Power Trading Co. Ltd. for setting up 2,640
 
MW Gadarwara Power Project in Narsinghpur District of MP as a Regional Power
 
Project of NTPC. Mining Plan for Dulanga (7 MTPA) coal blocks has been approved
 
by MOC whereas for Talaipalli coal block (18 MTPA), the same has been submitted
 
to MOC for approval.
 
 
Twenty Year Fuel Supply Agreements (FSAs) have been signed with subsidiary
 
coal companies of Coal India Limited (CIL) for long term coal supply to NTPC coal
 
based power stations. Joint venture Agreement (JVA) has been signed between
 
NTPC and CIL for promotion of one or more JV(s) for jointly undertaking the
 
Development, Operation & Maintanance of Coal Blocks (Brahmini and Chichro-
 
Patsimal in Jharkhand) and integrated Power Projects.
 
 
Government of India has allotted 4.46 MMSCMD of KG D6 gas for its existing
 
gas-based power plants in NCR. NTPC has also sought allocation of 35.5 MMSCMD
 
of KG D6 gas for setting up 7000 MW of expansion/new gas based power stations.
 
This is in addition to 12 MMSCMD of gas at USD 2.34/ MMBTU sought by NTPC
 
for taking up expansion of Kawas and Gandhar projects. As per provisional results
 
of NELP-VIII bidding of GOI declared by DGH, NTPC along with ONGC and other
 
consortium partners have won 3 petroleum blocks.
 
 
NTPC has also won a Block in the Cambay basin with 100 per cent participating
 
interest as Operator. During the year 2009-10 (till November 2009), NVHN has traded
 
3201 MUs of power and has transacted business with more than 30 State/
 
Distribution Utilities.
 
 
Joint Venture Company National High Power Test Laboratory Ltd. (NHPTL),
 
with PGCIL, NHPC and DVC, has been formed for setting up a High Power Test
 
Laboratory for short circuit testing. Joint venture company Energy Efficiency Services
 
Limited (EESL), with PFC, PGCIL and REC, has been formed to carry on and promote
 
the business of energy efficiency and climate change including manufacture and
 
supply of energy efficiency services and products.
 
 
==RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA==
 
"RGGVY - scheme of Rural Electricity Infrastructure and Household Electrification"
 
was launched in March 2005 with approved capital subsidy of Rs. 5000 cr during the
 
10th plan for implementation of Phase I of the scheme. The scheme was further
 
continued in 11th Plan for attaining the goal of providing access to electricity to all
 
households, electrification of about 1.15 lakh un-electrified and electricity
 
connections to 2.34 cr BPL households, with approved capital subsidy of Rs. 28000 cr.
 
 
The scheme merges erstwhile "Accelerated Electrification of one lakh Villages and
 
One Crore Households" and "Minimum Needs Programme" for rural electrification.
 
 
''' Highlights of the Scheme '''
 
 
• Ninety per cent capital subsidy is provided for overall cost of the projects
 
under the scheme.
 
 
• The States will finalize their Rural Electrification Plans in consultation with
 
Ministry of Power and notify the same within six months. Rural Electrification
 
Plan will be a road map for Generation, Transmission, Sub-Transmission and
 
Distribution of electricity in the State which will ensure the achievement of
 
objective of the scheme.
 
 
• The scheme would be implemented through the Rural Electrification
 
Corporation (REC).
 
 
• For projects to be eligible for capital subsidy under the scheme, prior
 
commitment of the States would also be obtained before sanction of projects
 
under the scheme for:
 
 
• Deployment of franchisees for the management of rural distribution in
 
projects financed under the scheme, and
 
 
• Guarantee by State Govt. for a minimum daily supply of 6-8 hours of
 
electricity in the RGGVY network with the assurance of meeting any
 
deficit in this context by supplying electricity at subsidized tariff as
 
required under the Electricity Act, 2003.
 
 
''' Scope of the Scheme '''
 
 
Under the scheme, projects could be financed with capital subsidy for provision
 
of:-
 
 
• Rural Electricity Distribution Backbone (REDB)
 
Provision of 33/11 KV (or 66/11 KV) sub-stations of adequate capacity and
 
lines in blocks where these do not exist.
 
 
• Creation of Village Electrification Infrastructure (VEI)
 
 
- Electrification of un-electrified villages.
 
 
- Electrification of un-electrified habitations with a population of
 
above 100.
 
 
- Provision of distribution transformers of appropriate capacity in
 
electrified villages/habitation(s).
 
 
• Decentralized Distributed Generation (DDG) and Supply
 
 
Decentralized distribution-cum-generation from conventional or renewable
 
or non-conventional sources for villages where grid connectivity is either not
 
feasible or not cost effective.
 
 
• Remote villages covered for financing under MNRE not included.
 
 
• Rural Household Electrification of Below Poverty Line Households:
 
 
- Electrification of un-electrified Below Poverty Line (BPL) households
 
would be financed with 100% capital subsidy as per norms of Kutir Jyoti
 
Programme in all rural habitations.
 
 
- Households above poverty line would be paying for their connections
 
at prescribed connection charges and no subsidy would be available for
 
this purpose.
 
 
===Franchisees===
 
In order to maintain the infrastructure being created and to provide uninterrupted
 
quality power, deployment of franchisee system has been made mandatory in the
 
scheme.
 
 
Management of rural distribution will be through franchisee, who can be Non-
 
Governmental Organizations (NGOs), user associations, cooperatives or individual
 
entrepreneurs. The Panchayats will be associated. Panchayati Raj institutions will
 
have an important role of overseeing in advisory capacity, the delivery of services
 
by the franchisees according to their identified responsibilities. The state
 
governments can also consider giving the responsibility of franchisees to the
 
Panchayati Raj institutions.
 
 
All the states have been asked to have input based franchisee system. In case
 
of the input based franchisee, the input energy into the area covered by the franchisee
 
is measured by the utility and the target for revenue collection are set based on the
 
collections made as a percentage of the input energy supplied to the consumers
 
beyond the point of metering by the utility. Input based franchisee will make
 
franchisee accountable for loss reduction and will therefore try to reduce theft in
 
the system. A major achievement of the scheme is that for the first time, commercial
 
aspect is being considered and fully addressed.
 
 
===Revenue Sustainability===
 
Based on the consumer mix and the prevailing consumer tariff and likely load, the
 
Bulk Supply Tariff (BST) for the franchisee would be determined after ensuring
 
commercial viability of the franchisee. Wherever feasible, bidding may be attempted
 
for determining the BST. This BST will be fully factored into the submissions of the
 
state Utilities to the State Electricity Regulatory Commissions (SERCs) for their
 
revenue requirements and tariff determination.
 
 
The State Government under the Electricity Act is required to provide the
 
requisite revenue subsidies to the State Utilities if it would like tariff for any category
 
of consumers to be lower that the tariff determined by thee SERC.
 
 
While administering the scheme, prior commitments may be taken from the
 
State Government regarding-
 
 
- Determination of bulk supply tariff for franchisees in a manner that
 
ensures their commercial viability.
 
 
- Provision of requisite revenue subsidy by the State Government to the
 
State Utilities as required under the Electricity Act.
 
 
===Release of Capital Subsidy===
 
The capital subsidy for eligible projects under the scheme would be given through
 
REC and projects shall be implemented fulfilling the conditionality. In the event
 
projects are not implemented satisfactorily in accordance with the conditionalities
 
of RGGVY, the capital subsidy could be converted into interest bearing loans.
 
CPSU's Services
 
 
With a view to augment the implementation capacities for the programme,
 
REC has entered into MOUs with NTPC, POWERGRID, NHPC and DVC to make
 
available CPSUs' project management expertise and capabilities to states wishing
 
to use their services.
 
==TECHNOLOGY DEVELOPMENT, CAPACITY BUILDING, MIS ETC.==
 
Upto 1 per cent of the total subsidy under the scheme would be used for associated
 
works/efforts of the programme.
 
 
===Project approved===
 
Based on the DPRs received from States, the Monitoring Committee on RGGVY in
 
the MOP has accorded approval to 235 projects for execution during 10th plan and
 
338 projects for execution during Phase-I of 11th plan.
 
[[File:  powerindia1.PNG||frame|500px]]
 
 
 
i) Three tier quality control mechanism under RGGVY
 
 
The Project under RGGVY scheme is subjected to a three-tier quality control
 
mechanism.
 
 
The first tier of quality assurance is achieved by Project Implementing Agency
 
(PIA). The PIA will engage a third party inspection agency who will ensure
 
that all the materials to be utilized and the workmanship conform to the
 
proscribed specification. The inspection will cover approximately 50% villages
 
on random sample basis for each project.
 
 
The 2nd tier of quality control is ensured by REC, the nodal agency of RGGVY
 
scheme by appointing the REC quality monitors (RQM) who will conduct
 
quality check at pre-shipment stage at the vendors' outlets of major material
 
and 10% villages on random sample basis.
 
 
The final tier of quality control will be assured by engagement of independent
 
evaluators by MOP for evaluation, at random, of supply erection under the
 
programme. These independent evaluators, designated as National Quality
 
Monitor (NQM) will cover 1% of the villages.
 
 
ii) Target for the year 2011-12
 
 
The target for electrification of villages is 14,500 un-electrified villages and
 
release of connections to 52 lakh BPL households during the year 2011-12. The
 
targets for electrification of 2010-11 was 17,500 un-electrified villages and
 
release of connections to 47 lakh BPL households and against these targets,
 
the achievement was electrification of 18,306 un-electrified villages and release
 
of connections to 58.83 lakh BPL households.
 
 
ii) Electrification Progress achieved
 
 
As a result of regular review and follow up, village electrification programme
 
has gained momentum in the country. During the year, as on 31.5.2011, 1016
 
un-electrified villages have been electrified and connections to 4.24 lakh BPL
 
households have been released.
 
 
Cumulatively, under RGGVY, electrification works in 97578 un-electrified
 
villages have been completed and free electricity connections to 164.04 lakhs
 
BPL households have been released as on 31.5.2011..
 
 
iv) Disbursement of funds
 
 
As on 31.5.2011, Rs. 25448.7 crore which include 10% loan component of REC,
 
have been released to the States/Implementing Agencies.
 
 
==RURAL ELECTRIFICATION CORPORATION LIMITED==
 
Rural Electrification Corporation Limited (REC) was incorporated as a company
 
under Companies Act, 1956 in 1969 with the main objective of financing rural
 
electrification schemes in the country. The expanded mandate of REC includes
 
financing of all projects including transmission and generation without any
 
restriction on population, geographical location or size. REC is a public financial
 
institution under Section 4A of the Companies Act, 1956. REC is also registered as a
 
Non-Banking Financial Company (NBFC) under Section 45 IA of the RBI Act, 1934.
 
REC is a "Navratna" company.
 
 
REC has grown over the years to be a leading financial institution in power
 
sector. Besides attending to its core objectives of financing schemes for extending
 
and improving the rural electricity infrastructure, REC is presently funding large/
 
mega generation projects, and transmission and distribution projects, which are
 
critical to the projected addition of installed capacity during the Tenth and Eleventh
 
Plans. REC is also the Nodal Agency for implementation of Rajiv Gandhi Grameen
 
Vidyutikaran Yojana—a scheme of Rural Electricity infrastructure and Household
 
Electrification launched by the Government of India in April 2005, for attainment
 
of the National Common Minimum Programme (NCMP) goal of providing access
 
to electricity to all households in five years.
 
 
In the Annual MOU signed with Ministry of Power, REC has been consistently
 
rated as "Excellent" in performance from the fiscal 1994 to 2008.
 
 
The Authorised and Paid-up Share Capital of the Company are Rs 1200 crore
 
and Rs 858.66 crore respectively as on 31 March 2009. The amount mobilized from
 
the market during the year 2008-09 was Rs 14894.89 crore. The domestic debt
 
instruments of REC continued to enjoy "AAA" rating—the highest rating assigned
 
by CRISIL, CARE ICRA, and FITCH. REC also enjoys International Credit rating
 
equivalent to sovereign rating of India from International Credit Rating Agency
 
Moody's and FITCH which is "Baa3" and "BBB" respectively.
 
==POWER GRID CORPORATION OF INDIA LIMITED==
 
The Power Grid Corporation of India Limited (POWERGRID) was incorporated as
 
a Government enterprise on 23 October, 1989 for establishment of operation of
 
regional and national power grids to facilitate transfer of power within and across
 
the regions with reliability, security and economy and on sound commercial
 
principles. POWERGRID was notified as the Central Transmission Utility (CTU) of
 
the country w.e.f. 1998. Further, Government of India conferred the status of
 
'Navratna" on POWERGRID w.e.f. 1 May 2008.
 
  [[File:  powerindia2.PNG||frame|500px]]
 
 
==Progress of Rural Electrification==
 
 
Villages Electrified
 
 
(Cumulata ive)
 
 
The year 2008-09 has been year of impressive financial performance. Gross
 
Turnover for the year grew by about 38 per cent to Rs 7,029 crore. Similarly, Profit
 
after Tax during the year increased to Rs 1,691 crore from Rs 1,448 crore in FY 2007-08,
 
thereby registering a growth of about 17 per cent. The company's gross asset base at
 
the end of the financial year 2008-09 stood at Rs 40,319 crore as against Rs 35,417 crore
 
at the end of last financial year, an increase of about 14 per cent. At the end of FY
 
2008-09, the company has a net worth of Rs 14,618 crore and capital employed of Rs
 
28,430 crore. There has been an impressive growth in the earning potential of the
 
company, which is reflected by the steady growth of return on Net Worth from the
 
level of 5.63 per cent in 1992-93 to 11.57 per cent in 2008-09. During FY 2009-10 till
 
September 2009, POWERGRID achieved a turnover of about Rs 3, 646 crore
 
(provisional) and Net Profit of Rs 1,007 crore (Provisional). Total fixed assets of the
 
company have grown to Rs 41,036 crore (Provisional) till September 2009.
 
 
==DEVELOPMENT OF NATIONAL GRID==
 
A national power grid in the country is being developed in a phased manner. All
 
the regional grids have already been inter-connected and total transmission capacity
 
of inter-regional transmission system, as on 31-03-2011 was 20750 MW. At present,
 
except Southern Region, all the other four regions are inter-connected in synchronous
 
mode and are operating in parallel.
 
 
Total inter-regional transmission capacity by the end of 9th Plan was 5750
 
MW. During 10th Plan, i.e., 2002-07, a total of 8300 MW of inter-regional capacities
 
were added. Thus, total inter-regional transmission capacity by the end of 10th
 
Plan was 14050 MW.
 
 
During 11th Plan, i.e., 2007-12, inter-regional transmission systems of 17600
 
MW capacity have been planned and it is expected that, by end of 11th Plan, total
 
inter-regional transmission capacity of the National Power grid would be increased
 
to 31650 MW. Out of the programme for 11th Plan, 2400 MW capacity was added
 
during 2007-08, 3300 MW during 2008-09 and 1000 MW during 2009-10. Barh-Balia
 
400 kv D/C line of 1600 MW capacity has been completed during 2010-11, but is yet
 
to be commissioned.
 
==POWER FINANCE CORPORATION LIMITED (PFC)==
 
The Power Finance Corporation Limited (PFC) is a leading Power Sector Financial
 
Institution and a Non-Banking Financial Company, providing fund and non-fund
 
based support for the development of the Indian Power Sector. Occupying a key
 
position in the Government of India's plan for the power sector, PFC performs a
 
major role in channelizing investment into the power sector and functions as a
 
dedicated agency for its development.
 
 
PFC is a Schedule-A, Navratna CPSE in the
 
Financial Services Sector, under the administrative control of the Ministry of Power,
 
with 89.78 per cent shareholding of the Government of India. Its registered and
 
corporate offices are at New Delhi. PFC was incorporated on 16 July 1986, under
 
the Companies Act, 1956, as part of Government of India's initiative to enhance
 
funding of power projects in India, with an objective to provide financial resources
 
and encourage flow of investments to the power and associated sectors, to work as
 
a catalyst to bring about institutional improvements in streamlining the functions
 
of its borrowers in financial, technical and managerial areas to ensure optimum
 
utilization of available resources, to mobilize various resources from domestic and
 
international sources at competitive rates, to strive for upgradation of skills for
 
effective and efficient growth of the sector, and to maximize the rate of return through
 
efficient operations and introduction of innovative financial instruments and services
 
for the power sector.
 
 
PFC draws upon its vast knowledge of the power sector and its financing
 
expertise to provide tailor-made products and services to its clients. In addition,
 
PFC provides technical, management advisory and consultancy services related
 
activities through its subsidiary company, namely, PFC Consulting Limited. PFC's
 
clients include the Power Utilities of State, Central and Private Sector. These clients
 
are involved in various aspects of the Power Sector in India, including generation,
 
transmission and distribution, and other related activities.
 
 
PFC's priorities include not only accelerating the pace of existing business of
 
funding generation, transmission and distribution projects, but also to explore the
 
new opportunities available in the sector. With this philosophy, PFC has around
 
half-a-dozen strategic business units, focusing on different business segments—
 
conventional lending to generation, transmission and distribution projects;
 
consortium lending to generation, transmission and distribution projects; lending
 
to power equipment manufacturers and fuel producers and suppliers, renewable
 
energy and CDM, equity funding through Power Equity Capital Advisor Pvt Ltd.
 
(PECAP).
 
 
PFC's long term borrowings programme has been rated at 'Baa3' by Moody's,
 
'BBB' by Standard & Poor's and 'BBB-' by FITCH which is at par with India's
 
Sovereign Rating. Further, CRISIL and ICRA have assigned 'AAA' and LAAA' rating
 
respectively to PFC.
 
 
====Performance Highlights====
 
PFC issued sanctions for Rs 37,065 crore of loans and grants during the financial
 
year 2009-10 up to 30 November 2009, as compared to Rs 28,660 crore sanctioned
 
during similar period of the last year (2008-09). An amount of Rs 12,672 crore was
 
disbursed during the same period to State, Central and Private Sector entities,
 
compared to Rs 12,062 crore disbursed during similar period last year (2008-09).
 
With this, cumulative sanction of Rs 2,56,613 crore and Disbursement of Rs 1,25,792
 
crore of loans and grants have been made by the Company as on 30 November
 
2009.
 
 
==Nodal Agency for Government Schemes==
 
PFC is a key agency in various Government of India Power Sector schemes and
 
programmes and has implemented and/or is implementing schemes like
 
Restructured Accelerated Power Development & Reform Program (R-APDRP),
 
Accelerated Generation & Supply Programme (AG&SP), Distribution Reform,
 
Upgrades and Management (DRUM) and Delivery through decentralized
 
Management (DDM).
 
 
In addition, Government of India has designated PFC as the
 
nodal agency to develop Ultra Mega Power Projects (UMPPs) based on tariff based
 
competitive bidding process, each project having a capacity of around 4000 MW
 
and requiring an investment of about Rs 20,000 crore. In this regard, PFC has
 
successfully awarded 4 UMPPs through tariff based competitive bidding process.
 
PFC has also been designated as the nodal agency for development of
 
Independent Transmission Project (ITP) based on tariff based competitive bidding
 
process and is presently handling ITP.
 
 
==Power Lenders' Club==
 
PFC has also established the 'Power Lenders' Club' which consists of 18 banks and
 
includes major financial institutions like HUDCO and LIC.
 
==Power Exchange==
 
In 2008-09, PFC had participated in the equity of Power Exchange India Limited
 
(PXI), a company promoted by NSE and NCDEX. PFC has became Professional
 
Clearing Member (PCM) of Power Exchange to support the activities of trading
 
members. PFC, NTPC, NHPC and TCS have promoted "National Power Exchange
 
Limited", a company incorporated under The Companies Act, 1956, with an
 
authorized capital of Rs 50 crore.
 
 
==SATLUJ JAL VIDYUT NIGAM LTD.==
 
The Satluj Jal Vidyut Nigam Limited-SJVN (formerly NJPC) was established on 24
 
May 1988 as a joint venture of the Government of India (GOI) and the Government
 
of Himachal Pradesh (GOHP) with equity participation in the ratio of 75:25
 
respectively, to plan, investigate, organize, execute, operate and maintain Hydroelectric
 
power projects. SJVN is a "Schedule-A" Mini Ratna company. The present
 
authorized share capital of SJVN is Rs 4500 crore.
 
 
SJVN is committed for generating reliable and eco-friendly power by means
 
of state -of-the-art technology, excellence in engineering and continued improvement
 
in quality management. SJVN, an IT savvy corporation, has established and is
 
following sound business, financial and regulatory policies.
 
 
SJVN having commissioned the 1500 MW Nathpa Jhakri HE Project, is
 
endowed not only with the state-of-the-art technology and know-how to tackle the
 
Himalayan Geology but has also developed the requisite knowledge and capability
 
to conceptualize, optimize and develop the power potential of hydro-power
 
development schemes of all sizes.
 
 
In pursuit to expansion of the Corporation by acquiring new projects for
 
development, the Corporation expanded its base from a single project to a multi
 
project and thereafter from presence in a single state to a pan-Indian Corporation
 
and established its footprint in the neighbouring countries of Nepal and Bhutan.
 
 
The Nathpa Jhakri Hydro Power Station - NJHPS (1500 MW) was the first
 
project undertaken by SJVN for execution, and all its six units of 250 MW each were
 
commissioned and are under commercial operation since 18 May 2004. Since its
 
commissioning, NJHEPS has generated total of 35432.37 MUs (Gross Energy
 
Generation) up to 31 December 2009 and SJVN has paid a total dividend of Rs 1181.59
 
crore.
 
 
The corporation proposes to develop Rampur HE Project as CDM Project for
 
obtaining Carbon Finance. The preliminary estimates show that the execution of
 
this Project shall result into Emission Reductions (ERs) of 1.4 million per annum
 
resulting in saving of 1.4 million tonnes of CO2 per year.
 
 
SJVN has been fully aware of the importance of both environmental,
 
resettlement and rehabilitation issues. SJVN has adopted an environment,
 
resettlement and rehabilitation policy which reiterates the company's commitment
 
to sustainable development which is within the carrying capacity of the eco-system
 
and which also promotes the improvement of the quality of life.
 
 
For its outstanding contribution to environment protection SJVN has been
 
awarded with Green Tech Award, Golden Peacock Eco Innovation Award, etc.
 
Consultancy Services
 
 
SJVN has experience of corporate and project planning, design, engineering,
 
construction management, erection and commissioning, contracts management,
 
project management, human resource management, financial management and
 
commercial management of India's largest hydro-electric project. To effectively utilize
 
the in-house expertise and the experience gained, a dedicated consultancy division
 
has been established for providing consultancy services to national and international
 
organizations.
 
 
==NATIONAL POWER TRAINING INSTITUTE==
 
National Power Training Institute (NPTI), a registered society under Ministry of
 
Power, Government of India is committed to the development of Human Resources
 
in power sector for the past four decades.
 
 
NPTI with its corporate centre at Faridabad operates eight institutes all over
 
the country. It has five regional institutes located at Neyveli (Tamil Nadu), Durgapur
 
(West Bengal), Badarpur (New Delhi), Nagpur (Maharashtra) and Guwahati (Assam)
 
and two specialized centres viz., Power Systems Training Institute (PSTI) & Hot
 
Line Training Centre (HLTC) at Bengaluru, Centre for Advanced Management and
 
Power Studies (CAMPS) at Faridabad (Haryana). NPTI (NE-R) is at present
 
operating from temporary site at Narangi complex of ASEB, Guwahati, and the
 
full-fledged training institute, as sanctioned by the Government of India at a cost of
 
Rs 18.29 crore, is in the advanced stage of completion at Kahilipara, Guwahati. The
 
Government of India has also sanctioned a scheme for setting up of Hydro Power
 
Training Centre at Nangal at an estimated cost of Rs 14.75 crore which is under
 
implementation.
 
 
The Institutes of NPTI are will equipped with Hi-Tech infrastructural facilities
 
for conducting different courses on technical as well as management subjects
 
covering the needs of thermal, hydro and nuclear power plants, Transmission &
 
Distribution Systems, and Energy related fields of the Indian Power and allied energy
 
sectors. It has high fidelity, real-time full scope 500 MW & 210 MW Fossil Fuel Fired
 
Power Plant Training Simulators at its various institutes imparting off-job specialized
 
skills to operation personnel across the country. Also a 430 MW CCGT Replica
 
Simulator has been commissioned at NPTI Corporate Office, Faridabad.
 
 
A Geographical Information System (GIS) Resource Centre for training and
 
consultancy in the areas of GIS based electricity Distribution Network Planning
 
and Management has been set up at NPTI Corporate Office, Faridabad.
 
A facility has been created at NPTI's Hot Line Training Centre, Bengaluru for
 
Live Line Maintenance of Transmission Lines upto 400 KV (first of its kind in Asia)
 
which enables trained personnel to attend to maintenance requirements without
 
power interruptions.
 
 
Several long-term and short-term training programs in the areas of thermal,
 
hydro, transmission & distribution and management etc. are being conducted in
 
the various institutes of NPTL. Besides conducting refresher training for working
 
engineers/supervisors, NPTI conducts a large number of job-oriented educational
 
programmes also such as MBA in Power Management, B.Tech (Power) and Post
 
Graduate Diploma in Thermal Power Plant Engineering.
 
 
==CENTRAL POWER RESEARCH INSTITUTE==
 
The Central Power Research Institute (CPRI), a Society registered under the
 
Societies Registration Act under the Ministry of Power, serves as National
 
Laboratory to carry out applied research in Electrical Power Engineering. It also
 
functions as an independent National Testing and Certification Authority for
 
Electrical Equipment for ensuring their reliability.
 
 
The Institute, with its existence of over four decades has built sophisticated
 
facilities, both in the areas of research and testing. The important facilities include
 
2500 MVA Short Circuit Testing with Synthetic Testing Facility at Bengaluru, Ultra
 
High Voltage Research Laboratory at Hyderabad, Short Circuit Testing Facility at
 
Bhopal, Thermal Research Centre at Koradi, Nagpur and Regional Testing
 
Laboratory at Noida, Kolkata and Guwahati.
 
 
Over the years, CPRI has built up expertise in the areas of transmission and
 
distribution systems, power quality, energy metering, energy auditing, transmission
 
line, tower design, conductor vibration studies, power systems studies, energy
 
conservation studies, transformer oil reclamation and testing, diagnostic and
 
condition monitoring and estimation of remaining life of equipment, new material
 
for power system application, Ultra High Voltage testing, short circuit testing, High
 
Voltage testing and other related fields. The Institute has set up and commissioned
 
the state- of-the-art seismic testing facility and a Real Time Digital Simulation facility.
 
CPRI offers consultancy services in these areas.
 
 
The CPRI’s laboratories are accredited under the National Accreditation Board
 
for Testing and Calibration of Laboratories (NABL), which is the national body for
 
accreditation of laboratories. CPRI has been given the membership status in the
 
group of Short Circuit Testing Liaison (STL) of Europe. CPRI laboratories are
 
approved for certain products like communication cables, LT capacitors etc., by
 
Underwriters Laboratories and Canadian Standard Association. The Institute has
 
been accredited by INTERTEKASTA, UK for testing of Low Voltage and Medium
 
Voltage equipment, Power Transformers and Power Cables.
 
 
The Research and Consultancy activities have been certified for ISO-9001-
 
2000 by NVT, KEMA. CPRI Laboratories have been recognized as Approved Test
 
House by Electrical Directorate, Kingdom of Bahrain and Saudi Arabia. The
 
certification is widely accepted in the countries of Middle-East, South-East, Far-
 
East Asia and countries of Africa.
 
 
The Institute works as a nodal agency for national level power system research.
 
Among the new ventures of the CPRI, the Centre for Collaborative and Advanced
 
Research (CCAR) has been established for creating infrastructure for the visiting
 
Scientists/Technologists to carry out research in the areas related to power sector. A
 
centre has been set up for utilization of industrial solid wastes to useful valueadded
 
products for the benefit of industry.
 
 
The Institute has established Regional Testing Laboratories at Kolkata and
 
Guwahati to cater to testing requirements in the Eastern and North-Eastern States
 
of the country. The Institute has also established the Refrigerator & Air Conditioners
 
testing laboratory under the Standards & Labelling Programme.
 
 
CPRI has served as Advisor-cum-Consultant under APDRP-I for three southern
 
states viz., Karnataka, Kerala and Andhra Pradesh. Pioneering work has been done
 
for total of 9 distribution circles and 256 towns in three states. CPRI is now
 
empanelled as IT consultant for R - APDRP and is also Third Party Inspection Agency
 
for Karnataka and Kerala under the Rajiv Gandhi Grameen Vidyutikaran Yojana
 
Scheme (RGGVY).
 
 
The Institute also offers Third Party Inspection Services and customized
 
Training Programmes to utilities and Industry.
 
==NORTH-EASTERN ELECTRIC POWER CORPORATION LIMITED==
 
With a need to develop the huge power potential, the North Eastern Electric Power
 
Corporation (NEEPCO) was incorporated on 2 April 1976 as a wholly owned
 
Government Enterprise under the Ministry of Power to plan, promote, investigate,
 
survey, design, construct, generate, operate and maintain power stations in the N.E.
 
region. The authorised share capital of the Corporation presently stands at
 
Rs 3,500 crore. The installed capacity of the NEEPCO is 1,130 MW comprising 755
 
MW of hydro power and 375 MW of gas based power. The Corporation currently
 
meets more than 60 per cent of the energy requirement of the North Eastern Region.
 
It is an ISO:9001:2000(Quality) ISO 14001:1996(Environment) and OHSAS-
 
18001:1999 (Safety) Company with its Corporate Office at Shillong.
 
 
The Corporation plans to add power of 107.50 MW during 11th Five Year Plan.
 
Presently, two hydro projects of 710 MW (Kameng 600 MW and Pare 110 MW) and
 
one gas based project (Tripura gas based power project, 100 MW nominal 20 per
 
cent) are under execution by NEEPCO.
 
==BHAKRA BEAS MANAGEMENT BOARD==
 
Bhakra-Nangal Project was taken up as a joint venture of the states of erstwhile
 
Punjab and Rajasthan. On re-organisation of erstwhile Punjab State in 1966 'Bhakra
 
Management Board' was constituted on 1st October, 1967 under Section 79 of Punjab
 
Re-Organisation Act, 1966 for the administration, maintenance and operation of
 
Bhakra Nangal Project. Beas Construction Board was constituted under the Punjab
 
Re-Organisation Act, 1966 for construction of Beas Project. 'Bhakra Management
 
Board' was renamed as 'Bhakra Beas Management Board' (BBMB) w.e.f. 15 May
 
1976 after transfer of Beas Project on its completion by Beas Construction Board.
 
Main functions of BBMB are as under:-
 
 
i) The regulation of the supply of water for irrigation from Bhakra Nangal and
 
Beas Projects to the States of Punjab, Haryana and Rajasthan and also drinking
 
water supply to Delhi and Chandigarh.
 
 
ii) The regulation of the supply of power generated at BBMB Power Houses to
 
Punjab, Haryana, Rajasthan, HP, Chandigarh and some Common Pool
 
consumers like old HP, National Fertilizers Limited, Nangal, etc.
 
 
iii) In the year 1999, BBMB has been entrusted with additional function of
 
providing and performing engineering and related technical and consultancy
 
services to states and other utilities.
 
 
The installed capacity of BBMB power plants is 2864.73 MW. The power
 
generation of BBMB Power Houses is being evacuated through BBMB power
 
evacuation system running into 3706 km length of 400 KV, 220 KV, 132 KV
 
transmission lines and 24 EHV sub-stations.
 
 
Bureau of Energy Efficiency (BEE) was set up in March 2002 within the overall
 
framework of the Energy Conservation Act, 2001 with the objective to spearhead
 
the improvement of energy efficiency in the economy through various regulatory
 
and promotional instruments.
 
 
BEE is therefore engaged in institutionalizing energy efficiency services,
 
promote energy efficiency delivery mechanisms, and provide leadership for
 
improvement of energy efficiency in all sectors of the economy.
 
 
The current programmes of the Bureau of Energy Efficiency focuses on
 
achieving energy savings that will result in avoided power generation capacity of
 
10,000 MW during the 11th Plan period.
 
 
With the success of mandatory labeling on the four products under the
 
Standards and Labeling scheme, BEE's several other initiatives such as the Energy
 
Conservation Building Code, Bachat Lamp Yojana. Agriculture and Municipal DSM
 
programmes, Designated Consumers and SME's, India is estimated to have saved
 
5,000 MW in the first three years of the 11th Five Year Plan period, between 2007
 
and 2010.
 
 
It is estimated that the avoided generation capacity will go beyond 10,000
 
MW by the end of 11th Plan, which is the target for the plan period.
 
Through implementation of its various schemes, the verified savings achieved
 
by BEE during the year 2009-10 is 2868.01 MW of avoided generation and 8720.83
 
MU of electricity saved.
 
 
The Ministry of Power and Bureau of Energy Efficiency (BEE) have prepared
 
the implementation framework for the National Mission for Enhanced Energy
 
Efficiency (NMEEE) as one of the eight national missions under the National Action
 
Plan of Climate Change (NAPCC) with the aim that this mission upscales the efforts
 
to create and sustain market for energy efficiency to unlock investment of around Rs.
 
74,000 crores.
 
 
The mission by 2014-15, is likely to achieve about 23 million tonnes oilequivalent
 
of fuel savings-in coal, gas, and petroleum products, along with an
 
expected avoided capacity addition of over 19,000 MW. The carbon dioxide emission
 
reduction is estimated to be 98.55 million tons annually. Eight energy intensive
 
industrial sectors having about 462 designated consumers would be covered under
 
innovative scheme called Perform, Achieve & Trade (PAT). Targets to reduce specific
 
energy consumption (SEC) from the baseline value would be assigned to each
 
designated consumer which is to be achieved by March 2014.
 
  
This scheme, alone would result in a saving of about 8.97 million tons of oil
 
equivalent by 2013-14. Apart from this, demand side management (DSM),
 
development of Super Efficient Equipment Program, Promotion of ESCOs and
 
creation of Partial Risk Guarantee fund and venture capital fund would be made
 
operational under various components of NMEEE.
 
  
 
=Transmission lines and the law=
 
=Transmission lines and the law=

Revision as of 07:42, 29 March 2017


Power transmission and distribution, state-wise, best and worst; Graphic courtesy: The Times of India

What Is the Difference Between Power and Energy? The Staff of QUEST explains:


The word “energy” is used to describe many different things—how we heat and cool our homes, how we fuel cars. Energy isn’t something that can be seen or felt, but you can see and feel the effects when energy is transferred from one place to another.

Energy is what makes change happen and can be transferred form one object to another. Energy can also be transformed from one form to another.

Power is the rate at which energy is transferred. It is not energy but is often confused with energy. The watt is the most commonly used unit of measure for power. It measures the rate of energy transfer.

A watt equals a joule per second. If a smart phone uses five joules of energy every second, then the power of the phone is five joules per second, or five watts.


Indpaedia has separate pages on

Energy: India and

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Power: India, 2 (ministry data

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After the formal launch of their online archival encyclopædia,
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Contents

Transmission lines and the law

SC: No need for landowner's nod to lay power line

Dhananjay Mahapatra, Dec 30, 2016: The Times of India


Removing roadblocks in reaching electricity to every village, the Supreme Court has ruled that no prior consent of landowners was required to lay overhead power transmission lines and erect towers to support these lines.

Through the judgment, the SC settled the issue which gave rise to conflicting judgments from various HCs. The SC's top priority was to enable the go vernment and its agencies to get electricity to the last household in the remotest areas.

A bench of Justices A K Sikri and R Banumathi said, “It is well known that India is an energy deficient country.There are many households where lighting even an electric bulb is a dream.“

The issue was filed by a cement manufacturer from Chhattisgarh and Power Grid Corporation. The cement manufacturer challenged Power Grid's decision to erect towers for transmission lines on its limestone mine lease area without its consent. The bench said, “As per the provisions of the Indian Telegraph Act, unobstructed access to lay down telegraph andor electricity transmission lines is an imperative in the larger public interest.“

Indian coal-based plants and pollution

The Times of India

Indian coal-based plants and pollution

Feb 23 2015

CSE's study rates 47 coal-based plants

A first-ever environmental rating of coalbased power plants has found that India's thermal power generating units figure among the world's “most inefficient“ in terms of compliance to pollution norms, use of resources and overall operation efficiency . Though private sector thermal plants in the country perform better than governmentowned ones, there is “immense scope for improvement“ in almost all units so that they can pollute less and generate more electricity with efficient use of available resources.

The study behind the ratings, done by experts at the Centre for Science and Environment (CSE), also noted that Delhi is home to one of the most polluting power plants in the country­ NTPC's Badarpur Thermal Power Plant­ which has contributed in turn ing the capital into the most polluted city in the world.

The study , done under CSE's Green Rating Project (GRP), analysed and rated 47 coal-based thermal power plants from across the country on a variety of environmental and energy parameters. About half of all plants operating in 2011-12 were selected for the rating.

“The objective of the study was to give a clear picture of the environmental performance of the sector. Our finding is that in India, where demand for power is increasing, power plants are performing way below the global benchmarks“, said Sunita Narain ahead of the study's release on Saturday.

She said, “Given the rapid increase in coal-based power projected by the government, stress on precious resources like water and land will increase and air and water pollution will worsen unless corrective measures are taken by the industry and policy-makers“.

The study was released jointly by M S Swaminathan, environment secretary Ashok Lavasa and chief economic advisor Arvind Subramanian in a function here, organized to award the greenest power plants.

Three top power plants (CSESBudge Budge, JSWELToranagallu and Tata-Trombay) were awarded for their overall environmental performance, while two others received awards for their efficient use of resources such as energy and water.

The study found that the country's thermal power plants are estimated to draw around 22 billion cubic meter of water, which is over half of India's domestic water need.It also noted that 55% of the units were violating air pollution standards which are already extremely lax.

Electricity consumption (2015 study)

The Times of India Jan 11 2016

Electricity/ energy consumption in four major cities of India in winter and autumn

Chittaranjan Tembhekar

Mumbai

The Indian winter appears to be the warmest in Mumbai if we go by the pattern of electricity consumption of air conditioners and refrigerators across India's four major metros. It's high time Mumbaikars' fight against global warming is intensified as even during colder days their refrigerators and ACs are guzzling power much more than those living in other metros such as Kolkata and Bengaluru, whose temperature patterns are more or less similar to the maximum city .

A study by The Energy and Resources Institute (TERI) conducted in 2015 on behalf of the Bureau of Energy Efficiency, finds Mumbai's consumption of power for refrigerators and air-conditioners (as percentage of power consumed by a household) is the highest among the households surveyed in Mumbai, Delhi, Kolkata and Bengaluru in both autumn and winter seasons respectively . Over 800 households were surveyed in each of these cities as part of the study .

Experts agree Mumbai obviously will spend more than Delhi, where winters are cold and autumns pleasant, but criticise Mumbaikars for spending so much more on air-conditioners than Calcutta and Bangalore.

While in autumn Mumbai showed 26.4% power consumption by a refrigerator in an average household, in winter it showed 45%, much high er among the four metros. For air conditioners a city household showed an average of 19.3 % power consumption in autumn while in winter it stood at 7.9% which is again much higher than remaining three cities surveyed during the study .

Power expert Ashok Pendse said air-conditioners were the killer for Mumbai as against 3200 MW consumption during summer, winter consumption of the city stood at just 1500 MW. “Keeping AC temperature between 24 and 26, servicing it regularly , avoiding its excess use, going for LED and star-rated gadgets, and strengthening greenery and avoiding vehicle pollution were the steps needed to be taken by Mumbaikars to counter the global warming which is indicative with the growing use of ACs,“ he said.

It may be recalled that a similar study made by BEE through TERI in 2009 had suggested that Mumbaikars' consumption on refrigerators, air conditioners and geysers was more than those living in Delhi, Bengaluru and Kolkata.

The survey had revealed that Mumbai's consumption was all time high across all four seasons summer, winter, spring and autumn. Among these three gadgets, as per 2009 study , Mumbai had consumed the most on refrigerators and air conditioners whereas Delhi consumed highest power on geyser during prolonged winter months followed by Kolkata.

2016: E-bidding helps cut power tariff

The Times of India, May 24 2016

The power ministry's move to channel procurement of short-term power by states through reverse auction on its e-bidding platform appears to be paying off. The first round of bidding on the DEEP (Discovery of Efficient Electricity Price) portal has seen tariffs go down by more than a third from a year-ago period.

Uttarakhand, Kerala, Bihar and private discom Torrent Power kicked off the DEEP bidding process, with Kerala discovering a price of Rs 3.14 per unit, the lowest for May in the slot of the day , against Rs 4.70 per unit paid for roundthe-clock supplies in 2015.

Uttarakhand discovered a price of Rs 2.59 per unit, the lowest for July on round-theclock basis. The state discoms had procured short-term power at Rs 3.41 per unit last year in the same period. Bihar received the lowest rate for July at Rs 3.08 per unit, while Torrent Power received the lowest price of Rs 2.95 per unit for May-June in slot of the day . While the state did not procure power through bidding before this, Torrent did not procure short-term power in 2014-15 and 2015-16. Bidding for Uttarakhand and Kerala concluded on April 29, for Torrent Power Ltd on May 3 and for Bihar on May 9, the power ministry said on Sunday .

Lower prices are expected to reduce the overall cost of procurement of power for dis coms and ultimately benefit consumers. Power minister Piyush Goyal had inaugurated the portal, making it mandatory for discoms to procure short-term power through reverse e-bidding.

Inter-region transfer

The Times of India, Jul 05 2015

Wastage of electricity, due to congestion, year-wise:2009-14; Graphic courtesy: The Times of India, Jul 05 2015

Sanjay Dutta

Supply from surplus to deficit regions blocked

It is the height of paradox for a country where blackouts are more a norm than exception. Over 3 billion units of electricity , or a day's national consumption, were wasted in 2014-15 as congestion in the transmission highways blocked trading between surplus and deficit regions. Data from various power exchanges show a higher wastage in 2013-14 at 5.3 billion units, or Delhi's consumption for roughly 56-60 days.

Inter-region transfer through short-term open access stood at 78.38 billion units during this period. No doubt, such wastage ­ both in terms of actual power fed into the grid but not used and generation capacity that was not `scheduled' due to grid bottlenecks ­ comes at a cost to the economy in terms of lost opportunities and idling power stations.

But even consumers, especially in deficit southern region, end up paying more as transmission gridlock not only affects volumes traded but also the price of electricity .

Power is traded on bourses through a mechanism called `market splitting' in industry parlance. In this system, tariff on surplus and deficit regions are adjusted in a way that the power flow equals the network capacity available for trading.As a result, the price in surplus area declines and rises in deficit regions, which either go dark or have to look for costlier alternatives.

The southern region is one of the worst sufferers in this regard. Some industry estimates say network congestion cost the region at least Rs 5,000 crore in the last three years during which time 19 billion units could not flow to it due to congestion. The opportunity cost alone of the unserved power is estimated at Rs 1,862 crore, assuming utilities earn Re 1 per unit extra revenue after meeting operating expenditure. Besides, in the absence of access to surplus power, cost of supplies were higher than what it would have been if there was no congestion. Utilities had to buy tap costlier options or shed load. The price differential works out to Rs 2,996 crore. This came from consumers' pockets.

Industry watchers say the problem lies in the way capaci ty of transmission highways are planned with singular focus on wheeling power under long-term supply agreements.This leaves only marginal capacity for trading, considered an ingredient for real competition and ensuring the government's promise of 24X7 supply .

Reserving some transmission capacity transmission networks, thus, is cited as need of the hour for growth of a healthy power market. This is important since distribution utilities are unable to forecast demand until very close to the delivery day due to factors such as seasonal variations, unscheduled generation outages, social events, political factors and business cycle etc.

See also

Power: India, 1

Power: India, 2 (ministry data

Energy: India

Drinking water and its availability: India

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