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 Indian Power Sector
D Power in Concurrent list :

‡ Both Central and State Governments have jurisdiction

D Power Sector in States

‡ Vertically integrated State Electricity Boards

(being restructured)

D Central Public Sector Undertakings

‡ Own 30% of the capacity

º
 Growth of the Indian Power Sector

D Generating capacity has grown manifold from 1712 MW in

1950 to more than 108,000 MW today.

D The growth in the transmission lines has been from 2708

ckm in 1950 to more than 200,000 ckm today.

D About 84% of 587,000 villages have been electrified,

balance to be electrified by 2007.

D 55% households have access to Electricity, balance to be

covered by 2012.

Ñ
 Present scenario - the challenge

‡ Financial health of SEBs

40000
Business as usual continues
Results targeted
30000

20000

Losses
(Rs. Cr.) 10000

0
1992 1994 1996 1998 2000 2002 2004 2006 2007

Years †

 Present scenario - the challenge 

‡ Power : removing shortages and improving Reliability & Quality

15

Results targeted
10

Peaking 5
Shortage %

0
2003 2005 2007 2010 2012
Installed
Capacity 108,000 MW 146,000 MW 212,000 MW X
 POWER SECTOR DEVELOPMENT

OBJECTIVES STRATEGY ACTION

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 Power Generation

l STRATEGY
D Low cost generation
D Optimum utilization of capacity
D Control Input cost
D Better fuel mix
Hydro improvement
D Technology upgradation
D Non conventional energy sources

*
l ACTION
D Strengthened monitoring effort
D Advance Action plan for projects identified / under
approval stage
D Expansion of existing stations
D Pit head stations
D Coastal stations
D Generation delicensing
D Captive capacity utilization
D Select IPPs to be assisted
D R&M of old plants (AG&SP)
o
 Transmission

l STRATEGY

D National Grid

D Interstate connections

D Technology upgradation

D Optimization of Transmission cost

A
l ACTION
D Development of National Grid
: 8000 MW today to 30,000 MW of inter regional
transfer capability by year 2012
D Technology upgradation
D RLDCs modernization
D Close monitoring on reliability
D Private participation
Independent Power Transmission Co.
Joint Venture with Powergrid
c
 Distribution
l STRATEGY
Distribution Reforms aimed at
D System upgradation
D Loss reduction (Aggregate Technical & Commercial
losses)
D Theft control
D Consumer orientation
D Commercialization
D Decentralized distributed generation and supply for
rural areas
D Introducing competition
D I.T. to replace human interfaces
cc
l ACTION
D Energy accounting
D Metering
D Organization restructuring
D Franchisees
D Technology input
D Anti theft laws
D Accelerated Power Development & Reform Programme
(APDRP)
‡ Incentive linked development package
‡ Five years Business plan
‡ Reliability index
‡ Rating of utilities
D Rural Elect. Supply Technology Mission (REST)
D Accelerated Rural Electrification Programme (AREP) cº
 Regulation
l STRATEGY
D Commercial viability
D Consumer services & satisfaction
l ACTION
D Tariff policy
D Multi year tariff approach
D To bring about commercial viability : Planning &
monitoring by Regulatory Commissions
D Grid discipline
D Development of competitive energy market
D Consumer services
D Quality, reliability & safety
D Growth of power industries
‡ Collaborative efforts of Government and Regulatory
Commissions cÑ
 Financing
D Performing Central Undertakings on their own
D One time settlement of outstanding dues of CPSUs
D Central Govt. Plan allocation for Xth Plan up by 270%.
D NTPC, Powergrid, PFC, REC, the major Central
Undertakings to access equity market.
D All Central undertakings to access debt market up to
debt leveraging scope
D External assistance from JBIC, ADB, World Bank etc.
D Other Investors/ Lenders to finance based on progress
on reforms.
D Discussions on with major Business groups to invest
in the Sector.
c†
 Conservation

l STRATEGY

D Demand Side management

D Load management

D Technology upgradation to provide energy

efficient equipment / gadgets.

cX
l ACTION
D Bureau of Energy Efficiency.
D Notified industries.
D Interface with IEEMA & other Industry Bodies.
D Awareness.
D Demand Side Management
D Specifications / Labelling / Norms
D Certification agency.
D Energy audit.
D 25,000 MW saving potential to be achieved by 2012.

c´
 Communication

D Political consensus.

D Public Awareness

D Media support

c*
 Legislative
D Electricity Act, 2003 - notified on 10th June µ03 :
U Creates liberal framework for power development
U Facilitates private investment
U Delicenses generation : Captive further liberalised
U Multiple licencess in Distribution
U Creates competitive environment
U Stringent provisions for controlling theft of
electricity
U Empowers States to restructure Electricity Boards
U Mandates creation of Regulatory Commissions
U Open access on Transmission & Distribution
U Power marketing / trading
co
 The way forward
‡ Reforms leading to commercialization of Distribution sector
‡ Sector viability in medium / long term to support investments
‡ Decentralized distribution / generation for electrification of
rural areas
‡ Streamlined / exemption in clearance procedures along with
delegation to States
‡ Amicable project specific R&R packages
‡ Public sector investments have been stepped up during
transition period
‡ Funding for Generation (Hydro & Thermal), Transmission and
Rural Electrification
‡ The Sectoral development should now get the boost with
confidence and cooperation of Promotors, Investors and
Financial Institutions
cA
Thank You
Ministry of Power
Website
http://powermin.nic.in