c. SWOT Analysis
a. Overview Strength
• India has total power generation capacity of • Policy framework in place:
157.2 GW as of February 28, 2010
Electricity Act 2003 and National Electricity
Coal and hydro plants dominate the
Policy 2005, the Tariff Policy 2006, Tariff
generation
Based Bidding Guidelines 2005 and the
Generation Capacity by fuel National Hydro Policy 2008
Hydro • 100% FDI permitted in Generation,
23% Gas Transmission & Distribution
11%
• Income tax holiday for a block of 10
RES years in the first 15 years of operation; waiver
10%
of capital goods import duties on mega power
Nuclear projects
3% • Independent Regulators: Central
Oil
1% Electricity Regulatory Commission for
Coal
52%
Central PSUs and inter-State issues. Each
State has its own Electricity Regulatory
Source: CEA website, as of 28/02/10 Commission
• T&D is a three-tier structure comprised of Weakness
regional grids, state grids and distribution • Very high AT&C losses
networks. The distribution networks and the The AT&C losses are presently in the
state grids are owned and operated by range of 18% to 62% in various states
distribution licensees, SEBs or state
The average AT&C loss in the country is
governments through SEBs
about 40%
• Most of the inter-state transmission links are
owned and operated by PGCIL Opportunities
• Inter-regional power transmission capacity is • Generation: Hydel power potential of
approximately 17,000 MW 150,000 MW is untapped
• Renovation, modernisation, up-rating
• The power industry in India faces severe and life extension of old thermal and hydro
energy shortages
power plants
in fiscal 2009, there was a shortage of
11.1% in terms of total energy • Transmission: additional 60,000
requirements and 11.9% in terms of peak circuit km of transmission network expected
demand requirements by 2012
• As per the 11th plan, investment to the tune of • Distribution: Bidding for the
US$167bn is planned for electricity privatisation of distribution in thirteen states
infrastructure development that have unbundled/corporatised their State
• capacity addition of 78.7 GW has been Electricity Boards – expected to take place
proposed for the 11th Plan (2007-12) with
over the next 2-3 years
a tentative plan of 100.0 GW for the 12th
plan (2012-17) • Total investment opportunity of
• new inter-regional capacities of 20,700 about US$200bn over a 7 year horizon
MW at 220 kV and above to be added. Threats
This would increase the total inter- • Delays in project execution : will
regional transmission capacity of national lead to increased costs
power grid at 220 kV and above from to
37,750 MW • Equipment availability: timely
availability of BTG and BOP is becoming a
b. Challenges major hurdle in the plants under development
• Project execution • Manpower availability: if the
• Fuel availability shortage of skilled labour may lead to further
• Equipment availability execution delays
• Manpower availability
References:
MoP Annual Report 2008-09
Transmission and Distribution (T&D)
Losses/AT&C Losses : Planning commission
Projections of Investment in Infrastructure during
the Eleventh Plan - 14 August 2008
http://infrastructure.gov.in/power.htm