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Report of
The Working Group on Power
for Eleventh Plan (2007-12)
Volume - II
Main Report

Government of India
Ministry of Power
New Delhi
February 2007
Working Group
on Power
for
Eleventh Plan (2007-12)

Volume – II
Main Report
Contents Working Group on Power for 11th Plan

CONTENTS

CHAPTER DESCRIPTION PAGE NO.


PREFACE
INTRODUCTION
EXECUTIVE SUMMARY 1 - 69
DEMAND FOR POWER AND GENERATION 1 - 93
Chapter 1
PLANNING
1.1 10th Plan Review
1.2 Target Capacity Addition during Tenth Plan
1.3 Actual Capacity Addition and Power Supply
Position during 10th Plan (Till date)
1.4 Actual/ Likely Capacity Addition during Tenth
Plan
1.5 Likely Installed Capacity at the end of 10th
Plan i.e. as on 31.03.2007
1.6 Demand for Power
1.7 Approach to Selection of Projects for 11th Plan
1.8 Generation Planning Norms
1.9 Generation Expansion Planning
1.10 Twelfth Plan Perspective (2012-2017)
1.11 Medium Term Plan: 11th Plan (2007-12)
1.12 Long Term Plan: 12th Plan (2012-17)
1.13 New Initiatives
1.14 Captive Power Plants
1.15 Maximising Generation from Existing Plants
and AGS&P
1.16 Energy Efficiency Improvement through
Energy Audit
1.17 Accelerated Generation & Supply Programme
(AGS&P) Scheme
1.18 Non Conventional Energy Sources
1.19 Issues to be Addressed and Strategy to be
adopted for 11th Plan
1.20 Recommendation of the Group
Appendix-1.1: Summary of Capacity Addition
Target of 41,110 MW during 10th Plan
(Region Wise, Sector Wise and Status Wise)
Appendix-1.2 List of Projects Commissioned
th
during 10 Plan upto 31.12.2006
Appendix-1.3 List of Units dropped from 10th Plan
(41110 MW)
Appendix-1.4 List of the Thermal Projects slipping
from 10th Plan (41,110 MW) and included in 11th
Plan (As per 30,641 MW)

Page 1 of Contents
Contents Working Group on Power for 11th Plan

CHAPTER DESCRIPTION PAGE NO.


Appendix-1.5 List of the Hydro Projects slipping
from 10th Plan (41,110 MW) and included in 11th
Plan (As per 30,641 MW)
Appendix-1.6 Details of Best Effort Projects
Appendix-1.7 List of Projects Likely to slip to 11th
Plan
Appendix-1.8 Capacity Addition programme for
11th Plan
Appendix-1.9 Year wise coal requirement for 11th
Plan
Appendix-1.10 Shelf of 12th Plan projects
Appendix 1.11 Comparative Performance of
Partnership in Excellence (PIE) Stations with
NTPC as PIE Partner
Appendix 1.12 State Wise List of Hydro RM&U
Projects Completed in the 10th Plan
Appendix 1.13 State Wise List of ongoing Hydro
RM&U Projects Programmed For Completion In
the 10th Plan
Appendix 1.14 State Wise List of ongoing Hydro
RM&U Projects Programmed for Completion in the
11th Plan
Appendix 1.15 State Wise List of Hydro RM&U
Projects Programmed for Completion in the 11th
Plan but works of which are yet to be taken up for
Implementation

TRANSMISSION PLANNING AND NATIONAL 1 - 66


Chapter 2
GRID
2.1 Review of Transmission System during 10th
Plan
2.2 National Grid
2.3 Eleventh Plan Programme
2.4 Technology Development
2.5 Transmission Requirements for Open Access
and Trading
2.6 Power Exchange with Neighbouring Countries
2.7 Reliability Issues and Grid Operation
2.8 Fund Requirement during 11th Plan for
Transmission System Development and
Related Schemes
Appendix-2.1: HVDC Transmission Bipole, Back-
to-back and Monopole lines and terminal station –
Existing at the end of 9th Plan and programme for
10th Plan 2002-07
Appendix-2.2: Transmission lines and sub-station
at 765kV – Existing at the end of 9th Plan and
programme for 10th Plan 2002-07

Page 2 of Contents
Contents Working Group on Power for 11th Plan

CHAPTER DESCRIPTION PAGE NO.


Appendix 2.3 List of major transmission schemes
completed and programmed under the
development plan of the Regional Grids and
National Grid during the 10th Plan-Northern Region
Appendix 2.4 List of major transmission schemes
completed and programmed under the
development plan of the Regional Grids and
National Grid during the 10th Plan-Western Region
Appendix 2.5 List of major transmission schemes
completed and programmed under the
development plan of the Regional Grids and
National Grid during the 10th Plan-Southern Region
Appendix 2.6 List of major transmission schemes
completed and programmed under the
development plan of the Regional Grids and
National Grid during the 10th Plan-Eastern Region
Appendix 2.7 List of major transmission schemes
completed and programmed under the
development plan of the Regional Grids and
National Grid during the 10th Plan-Inter-Regional
Appendix-2.8: Inter-State Transmission Schemes
For The 11th Plan
Appendix- 2.9: States’ Transmission Schemes for
the 11th Plan Evacuation System for Generation
Projects
Appendix-2.10 State-Wise Details of Normative
Assessment

DISTRIBUTION INCLUDING VILLAGE AND 1 - 57


Chapter 3
HOUSHOLD ELECTRIFICATION
3.0 Overview
3.1 Key Issues in Electricity Distribution Sector
3.2 Distribution Reforms
3.3 New Legal and Policy Framework
3.4 Policy Initiatives
3.5 Distribution of Power in Urban Areas
3.6 Achievements Under APDRP
3.7 Distribution of Power in Rural Areas -
Initiatives in 10th Plan
3.8 Development of Revenue Sustainability -
Franchisees
3.9 Role of Panchayati Raj in Franchisee
Development
3.10 Power Distribution in Rural Areas Through
DDG
3.11 Short Term Strategies for DDG Schemes
3.12 Medium Term and Long Term Strategies
3.13 Cost to Serve/ Delivered Cost

Page 3 of Contents
Contents Working Group on Power for 11th Plan

CHAPTER DESCRIPTION PAGE NO.


3.14 Role of Stakeholders
3.15 Role of REC
3.16 Institutional and Financial Models
3.17 Special Focus Areas for 11th Plan
3.18 New Programmes/Schemes for 11th Plan
3.19 Agriculture Sector - Subsidies and Cross
Subsidies
3.20 Water Energy Nexus
3.21 Open Access in Distribution
3.22 Multi-Year Tariff
3.23 Public Private Partnership
3.24 Impact of Power Sector Reforms – Success
Stories
3.25 Best Practices
3.26 Requirement of Funds
3.27 Recommendations
DEMAND SIDE MANAGEMENT AND ENERGY 1 - 14
Chapter 4
EFFICIENCY
4.0 Introduction
4.1 The Energy Conservation Act
4.2 Energy Saving –Target and Achievement of
10th Plan
4.3 Energy Conservation Strategy in the 11th Five-
Year Plan
4.4 Policy Research for Accelerating Adoption of
Energy Efficiency and DSM Programs
4.5 Budget Outlay for the 11th Plan
4.6 Recommendations
Chapter 5 RESEARCH & DEVELOPMENT 1 - 21
5.0 Introduction
5.1 Overview of R&D
5.2 Technology Development in Power Sector
5.3 Identified Projects for 11th Plan by Central
Utilities
5.4 R&D Project Provisions and Test Facilities for
CPRI
5.5 Major Project Proposals for 11th Five Year
Plan
5.6 Short Listed Short Term & Long Term
Projects
5.7 R&D Funding
5.8 Intellectual Property Rights
5.9 Human Resource Development and
Technical Competence Building
DEVELOPMENT OF POWER SECTOR IN 1 - 11
Chapter 6
NORTH-EASTERN REGION
6.0 Introduction

Page 4 of Contents
Contents Working Group on Power for 11th Plan

CHAPTER DESCRIPTION PAGE NO.


6.1 Status at the beginning of 10th Plan
6.2 Review of Generation Capacity Addition
Programme during 10th Plan
6.3 Reasons for Slow Pace of Project Execution
6.4 Power Demand & Supply Analysis of the
Region
6.5 Generating Capacity Addition Programme in
North Eastern Region/ Sikkim during 11th
Plan
6.6 Development of Transmission System in
North Eastern Region
6.7 Evacuation of Power from Major Generation
Projects in the North-Eastern Region along
with Power from Projects coming up in
Sikkim and Bhutan during the 11th Plan and
early 12th Plan Period
6.8 Special Attention for Distribution in NE
Region
6.9 Fund Requirement
6.10 Policy Initiatives and Recommendations

Chapter 7 HUMAN RESOURCE DEVELOPMENT 1 - 25


7.0 Back Ground
7.1 Elements of HRD Planning
7.2 Assessment of Manpower
7.3 Training
7.4 Funding & Capital Outlay
Appendix 7.1: Training Load during 11th Plan for
Technical Manpower (Includes Infrastructure) in
Thousand-Man-Months (TMM)
Appendix 7.2: Training Load during 11th Plan for
Non-Technical Manpower (Includes Infrastructure)
in Thousand-Man-Months
Appendix 7.3: Training Load (Induction) during
12th Plan for Technical Manpower (Includes
Infrastructure) in Thousand-Man-Months
Appendix 7.4: Training Load (Induction) during
12th Plan for Non-Technical Manpower (Includes
Infrastructure) in Thousand-man-months
Chapter 8 LEGISLATIVE AND POLICY ISSUES 1 - 41
8.0 Back Ground
8.1 Implementation of Provisions of Act and
Policies
8.2 Status of Implementation and Deviations of
Integrated Energy Policy
8.3 National Electricity Policy - Deviations and
Status of Implementation
8.4 Major Issues and Recommendations

Page 5 of Contents
Contents Working Group on Power for 11th Plan

CHAPTER DESCRIPTION PAGE NO.


8.5 Summary of Recommendations
Appendix 8.1: Fund Requirement for Training of
Electricity Regulators and Staff
Appendix 8.2: Comments of Prayas Energy Group
Appendix 8.3: Comments of IIT Kanpur
Chapter 9 KEY INPUTS 1 - 49
9.1 Introduction
9.2 Coal & Lignite
9.3 Transportation of Coal: Available Infrastructure
9.4 Natural Gas
9.5 Key Input Materials
9.6 Generation Expansion Plan
9.7 Material Requirements for Generating Stations
9.8 Material Requirement for Power Transmission
System Network
9.9 Material Requirement for Distribution System
Network
9.10 Material Requirement for Power and
Distribution Transformers
9.11 Other Materials for 11th & 12th Plan Projects
9.12 Total Requirement of Various Materials for
Capacity Addition Planned during 11th & 12th
Plans
9.13 Availability / Supply of Key Materials
9.14 Constraints / Policy Support Required
9.15 Availability / Capability of Manufacturers
9.16 Construction Capability
9.17 Availability/Capability of Construction
Agencies
9.18 Availability of Construction Equipment
9.19 Special Measures for Thermal Projects
9.20 Recommendations
Appendix 9.1: Port wise Projected Traffic and
Capacity Estimation (2013-14)
Appendix 9.2: List of Construction Equipments to
be Augmented for Hydro Projects
Appendix 9.3: Construction Equipment
Availability vis a vis Augmentation required for
adding 14000 MW / per yr.
FINANCIAL ISSUES AND POWER SECTOR 1 - 46
Chapter 10
FINANCING
10.1 Financial Performance of Power Sector
during 10th Plan
10.2 Fund Requirement for 11th Plan
10.3 Renovation and Modernization of Power
Plants
10.4 Transmission Network

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Contents Working Group on Power for 11th Plan

CHAPTER DESCRIPTION PAGE NO.


10.5 Distribution and Rural Electrification
10.6 Human Resource Development
10.7 Research and Technology Development
10.8 Demand Side Management
10.9 11th Plan Estimated Fund Requirement
10.10 Year Wise Fund Requirement
10.11 Sources of Funds
10.12 Estimated Funds Mobilization
10.13 Lenders’ Issues
10.14 Developers’ Concerns
10.15 Recommendations & Implementation
Strategy
10.16 Implementation Mechanisms
Appendix 10.1: Detailed Outlay and Achievement
for Funding 10th Plan - State Sector
Appendix 10.2: Approved Tenth Plan Outlay
Internal and Extra Budgetary Resources Gross
Budgetary Support
Appendix 10.3: Assumptions for Estimation of
Cost of Generation Projects
Appendix 10.4: Projects Under Construction
Appendix 10.5: Committed Projects
Appendix 10.6: Projects to be taken up in 11th
Plan for Likely Benefit in 12th Plan
ACRONYMS

Page 7 of Contents
INTRODUCTION

The Working Group on Power was constituted by the Planning Commission vide
its Office Order No.I-15/1/2005-P&E dated 20th April 2006 (copy enclosed at Appendix-
A) to formulate the power programme for 11th Plan. Secretary (Power) was the
Chairman of the Working Group and Member (Planning), CEA was the Member
Secretary of the Working Group. The Composition and Terms of Reference of the
Working Group for Eleventh Plan are given in Appendix-A.

The first meeting of the Working Group was held on 19th May 2006 under the
Chairmanship of Secretary (Power). It was decided to constitute 8 specialized Sub-
Groups to go into the specific areas to cover comprehensively all the Terms of
Reference of the Working Group. Subsequently, review meetings of the Working Group
were held in MoP on a regular basis to assess the progress of the Sub-Groups from time
to time. During the discussions, it emerged that it was essential to have a separate Sub-
Group on “Human Resource Development” and accordingly Sub Group 9 was
constituted. Details of the various Sub Groups are enclosed in Appendix- B

The Sub-Groups discussed various issues regarding Demand, Generation,


Transmission & Distribution Expansion Planning, Households & Rural Electrification,
Demand Side Management & Energy Efficiency Issues, Research & Development,
Manpower Planning & Training and Fund Requirement. A separate chapter has also
been included on development of North Eastern Region as well as Policy Issues. A
review of and measures for implementation of National Electricity Policy and Integrated
Energy Policy have also been included in the Report.

The report is based on 10th Plan likely capacity addition of 30,641 MW


corresponding to which the 11th Plan capacity addition is 68,869 MW and 12th Plan
capacity addition is 82,000 MW. Subsequent to the finalization of the Report, CEA had
reviewed the likely capacity addition during the 10th Plan. This is now expected to be
around 23,250 MW. The balance 10th Plan capacity would slip to 11th Plan in addition to
68,869 MW planned for 11th Plan. These changes have, however not been effected in
the body of the Report.

Various Sub-Groups submitted their Reports to the main Working Group. Based
on the recommendations of these Sub-Groups the Report of the Working Group for 11th
Plan has been formulated. It is in 2 Volumes- Volume I containing the Executive
Summary of the Report and Volume II containing the main Chapters of the Report. The
Executive Summary has also been made part of Volume II for the sake of completeness
& ease of reference.

New Delhi (V. S. VERMA)


15th Feb. 2007 Member (Planning) CEA and
Member Secretary of the
Working Group on Power
Appendix-A
No.I-15/1/2005-P&E
GOVERNMENT OF INDIA
PLANNING COMMISSION
(POWER & ENERGY DIVISION)
******
Yojana Bhawan
Sansad Marg
New Delhi— 110001.

Dated: 20th April, 2006

ORDER

Subject: Constitution of a Working Group on Power for formulation of Eleventh Five Year Plan
(2007-2012.

It has been decided to constitute a Working Group on Power in the context of preparation
of Eleventh Five Year Plan (2007-2012). The Composition and Terms of Reference of the Group
will be as follows:

A. Composition

Secretary, Ministry of Power - Chairman

Members

1. Adviser (Energy), Planning Commission


2. Chairperson, Central Electricity Authority
3. Representative of Ministry of Non-Conventional Energy Sources
4. Representative of Department of Atomic Energy
5. Representative of Ministry of Coal
6. Representative of Ministry of Petroleum & Natural Gas
7. Representative of Ministry of Environment & Forests
8. Representative of Department of Science & Technology
9. Member (Planning), Central Electricity Authority— Member Secretary

PSUs

1. CMDs, NTPC/NHPC/PGCIL/PFC/REC
2. Chairmen, GRIDCO/APTRANSCO/MSEB/MPEB/TNEB/PSEB

Private Sector Representatives

1. Representative of Reliance Energy Company


2. Representative of Tata Electric Company
3. Representative of Torrent Electric Company
OTHERS

1. Shri Girish Sant, PRAYAS


2. Shri Navroj Dubash, NIPFP
3. Prof. Anoop Singh, lIT Kanpur

B. Terms of Reference

i) To review the Integrated Energy Policy Report and suggest measures to


operationalise its recommendations during the Eleventh Plan Period.
ii) To review the status of various policies notified under the provisions of
Electricity Act, 2003 and identify steps needed to realize the objectives of the
Electricity Act, 2003.
iii) To recommend an industry structure that would enhance the number of players,
promote competition, provide a consistent & transparent pricing regime and raise
conversion, transmission, distribution & end use efficiency.
iv) To review the likely achievement during the Tenth Plan period in meeting targets
set for Generation, Transmission, Distribution and Renovation & Modernisation
R&M). An analysis of the reasons for shortfalls, if any, may be highlighted.
v) To review the current status of captive generation in the country, highlight issues
facing this sub sector and make recommendations for enhancing/reducing
captive generation during the Eleventh Plan period.
vi) To review the effectiveness of Eleventh Plan Schemes such as Accelerated
Generation & Supply Programme (AG&SP), Accelerated Power Development &
Reforms Programme (APDRP) and Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY). To suggest modifications and/or give recommendations for scrapping
these schemes or replacing them with alternative schemes to better address the
desired objectives.
vii) To assess the State-wise/region-wise demand for power in terms of both peak and
energy requirements.
viii) To recommend the optimal mix of additional generating capacity to be created
during the Eleventh Plan period in terms of hydro, thermal (coal, gas, lignite and
liquid fuel) and nuclear generation on the basis of relative economics of different
fuels at different locations. The executing agency of the project i.e. State Sector,
Central Sector or Private Sector should also be identified. A possible listing of the
projects and their phasing for benefits during Eleventh Plan must be prepared.
Advance action to be taken in the Eleventh Plan period for the Twelfth Plan
projects may also be identified.
ix) To assess the potential for improving availability of power from existing power
stations through Renovation & Modernisation/life extension.
x) To maximise benefit from the existing plants by improving their operational
efficiency and capacity utilization, improvement and augmentation of
Transmission and Distribution network and dealing effectively with the problem
of Aggregate Technical & Commercial (AT&C) losses and theft of power.
xi) To review the on-going reform process undertaken by States in the power sector.
xii) To assess if privatisation is an answer to address the ills of the Power Sector.
xiii) To suggest energy conservation measures through Demand Side Management
(DSM) such as staggering of load, time of the day metering and pricing,
reduction in the energy intensity of the large consumers etc.
xiv) To recommend the operational norms for thermal including Gas, Liquid fuel and
nuclear generations.
xv) To develop a work plan to tackle problems in ash disposal, pollution and other
environmental issues.
xvi) To make recommendations regarding S&T programme to be implemented in the
Eleventh Plan period and the institutional arrangements necessary therefore.
xvii) To explore avenues for purchase of power from neighbouring countries through
joint venture schemes.
xviii) To assess the investment requirement for the Eleventh Plan in the Power Sector.
xix) To assess the infra-structural support such as transportation, port facilities,
construction and manufacturing capabilities, roads etc. that would be required for
implementation of the Eleventh and Twelfth five year Plans.

2. In order to assist the Working Group in its task, separate Sub-Groups on specific aspects
may be formed by the Working Group. These Sub-Groups will furnish their reports to the
Working Group
3. The Chairman of the Working Group may co-opt experts as may be considered
necessary.
4. The Working Group will submit its report to the Planning Commission latest by
30th September, 2006
5. Non-official members shall be entitled to payment of TA/DA by the Planning
Commission as per SR 190(a). Official members will be entitled to payment of TAJDA
by their respective Departments/Organizations, as per the rules of entitlement applicable
to them.
6. The name(s) of the Representative(s) of various organizations, as per the above
composition may be communicated to the Member-Secretary of the Working Group
under intimation to Shri Surya P. Sethi, Adviser (Energy), Planning Commission.
7. Shri R.K. Kaul, Joint Adviser, Planning Commission, Room No.503, Yojana Bhavan,
New Delhi-i 10 001 (Telephone No. 2309 6718), shall be the Nodal Officer for this
Working Group and for any further query/correspondence may be made with him.

(K.K. Chhabra)
Under Secretary to the Government of India

Chairman and Members (including Member-Secretary) of the Working Group.

Copy for information to:

1. PSs to Deputy Chainman/ MOS(Planning)/ Members/ Member-Secretary, Planning


Commission.
2. All Principal Advisers/ Advisers/JS(SP&Admn.)
3. Prime Minister’s Office, South Block, New Delhi.
4. Information Officer, Yojana Bhavan.
5. For general information in Yojana Bhavan through e-mail.

(K.K. Chhabra)
Under Secretary to the Government of India
Appendix-B

WORKING GROUP ON POWER FOR 11TH FIVE


YEAR PLAN (2007-2012) – Details of Sub-Groups

SUB-GROUP 1- DEMAND PROJECTION AND GENERATION PLANNING.

Shri Rakesh Nath-Chairperson, CEA- Chairman of Sub-Group


Shri A.S. Bakshi-Chief Engineer (IRP) CEA - Member Secretary of Sub-Group

SUB-GROUP 2- TRANSMISSION PLANNING INCLUDING NATIONAL GRID

Shri V. Ramakrishna - Member (PS) CEA - Chairman of Sub-Group

Shri A.K. Asthana, Chief Engineer (SP&PA), CEA - Member Secretary of Sub-Group
Shri Jiwesh Nandan,Director (PTC & Trans), Ministry of Power - Member Secretary of Sub-
Group

SUB-GROUP 3- DISTRIBUTION INCLUDING VILLAGE & HOUSEHOLD


ELECTRIFICATION

Shri Anil Kr. Lakhina - Chairman , REC - Chairman of Sub-Group


Ms Dharitri Panda, Director (RE), Min. of Power , Member Secretary of Sub-Group

SUB-GROUP 4 - LEGISLATIVE AND POLICY ISSUES – FORMULATION,


IMPLEMENTATION & FEEDBACK

Shri Ajay Shankar Additional Secretary, Ministry of Power - Chairman of Sub-Group


Shri Alok Kumar, Director (R&R), Ministry of Power - Member Secretary of Sub-Group

SUB-GROUP 5 - DEMAND SIDE MANAGEMENT, ENERGY EFFICIENCY & ENERGY


CONSERVATION

Dr. Ajay Mathur- Director General, BEE - Chairman of Sub-Group


Shri K.K.Chakarvarti Energy Economist BEE - Member Secretary of Sub-Group

SUB-GROUP 6 - TECHNOLOGICAL ADVANCEMENT AND RESEARCH &


DEVELOPMENT

Shri A.K.Tripathi - Director General CPRI - Chairman of Sub-Group


Dr. R.R. Sonde, Executive Director (R&D) NTPC- Member Secretary of Sub-Group

SUB-GROUP 7 - ISSUES CONCERNING KEY INPUTS

Shri T. Sankarlingam - CMD NTPC - Chairman of Sub-Group


Shri S.Sheshadri-Chief Engineer (TPIA)CEA - Member Secretary of Sub-Group
SUB-GROUP 8 - FINANCIAL ISSUES

Dr. V.K.Garg - CMD, PFC - Chairman of Sub-Group


Sh. Mukul Modi,Asstt Vice President,SBI Capital Markets Limited- Member Secretary of Sub-
Group

SUB-GROUP 9 - HUMAN RESOURCE DEVELOPMENT AND CAPACITY BUILDING

Shri U.N. Panjiar, Additional Secretary, Ministry of Power - Chairman of Sub-Group,


Shri C.S.Malik , Principal Director, NPTI - Member Secretary of Sub-Group
Chief Coordinator from MoP – Shri Sudhakar Shukla, Director, MoP
th
Executive Summary Working Group on Power-11 Plan (2007-12)

EXECUTIVE SUMMARY

1.0 DEMAND PROJECTION AND GENERATION PLANNING

1.1 TENTH PLAN REVIEW

The capacity addition target of 41,110 MW comprising 14,393 MW hydro, 25,417


MW thermal and 1,300 MW nuclear was fixed for the 10th Plan. The sector wise,
type wise summary of this capacity addition target is given in Table below.

10TH PLAN CAPACITY ADDITION TARGET-SECTOR WISE


(Figures in MW)
SECTOR Hydro Thermal Nuclear Total (%)
CENTRAL 8,742 12,790 1,300 22,832 (55.5%)
STATE 4,481 6,676 0 11,157 (27.2%)
PRIVATE 1,170 5,951 0 7,121 (17.3%)
TOTAL 14,393 25,417 1,300 41,110 (100%)

A moderate target was set for state and private sectors keeping in view the
preparedness of various state power utilities and IPPs.

1.1.2 Actual Capacity Addition (till 31.12.2006)

A capacity addition of 17,995 MW has been achieved during 10th Plan till
31/12/06. The total installed capacity as on 31/12/2006 was 1,27,753 MW
comprising 33,642 MW hydro, 84,020 MW thermal including gas & diesel, 3,900
MW nuclear power plants and 6,191 MW from renewable energy sources
including wind.
(The sector– wise details of installed capacity are given in Table 1.4 in Chapter-1.)

1.1.3 Power supply position in 10th plan

The year-wise actual power supply position during 2002-03, 2003-04, 2004-05
,2005-06 and 2006-07(till Dec-06) of 10th plan is given in Table below

1
th
Executive Summary Working Group on Power-11 Plan (2007-12)

ACTUAL POWER SUPPLY POSITION (ALL INDIA BASIS)

Year Peak Energy


Requir Availab Shortage Require Availability Shortage
ement ility MW (%) ment (MU) MU (%)
(MW) (MW) (MU)
2002-03 81492 71547 9945 (12.2%) 545983 497690 48093 (8.8%)
2003-04 84574 75066 9508 (11.2%) 559264 519398 39866 (7.1%)
2004-05 87906 77652 10254 (11.7%) 591373 548115 43258 (7.3%)
2005-06 93255 81792 11463 (12.3%) 631757 578819 52938 (8.4%)
2006-07 100466 86425 14041 (14.0%) 510223 465149 45074 (8.8%)
(upto
Dec,06)

The likely achievement of capacity addition during the 10th Plan is expected to be
30,641 MW which includes 2,578 MW capacity of projects which have been
included on best effort basis. Any slippage of these best efforts projects from
10th plan would be reckoned as additional capacity in 11th plan over and above
being proposed in this document. In 8th & 9th plan, capacity addition of 16,423
MW and 19,119 MW respectively was achieved. Even though the capacity
addition target of 10th plan could not be achieved, the actual capacity addition is
expected to be much higher than the earlier five year plans. The reasons for the
slippages during the 10th plan have been analysed to learn lessons for capacity
addition planning for future plans.

During the first year of 10th plan itself it became clear that a number of projects
totalling to 3,009 MW in public and private sectors could not be taken up due to
various reasons which included non availability of escrow cover by State
Government to IPP projects and fund constraints. There was also delay in super
critical technology tie-up by BHEL for six units of 660 MW to be taken up by
NTPC which resulted in delay in tendering. Additional projects totalling to 5,008
MW capacity were identified for execution during 10th plan to make up for the
projects which could not take off. However, a total capacity of 12,516 MW
(excluding 3,009 MW projects which could not be taken up) is expected to slip to
11th Plan due to reasons mentioned against each, in the following table:

2
th
Executive Summary Working Group on Power-11 Plan (2007-12)

Sl. No Major Reasons of slippage Capacity slipped (MW)


Thermal Hydro
1. Delay in super critical technology tie up by 3960 -
BHEL
2. Geological Surprises - 510
3. Natural Calamities 450
4. Delay in award of works 998 823
5. Delay in MoE&F clearance - 400
6. Investment decision/ Funds tie up 1500 1400
constraints/ delay in financial closure
7. Delay in Preparation of DPR & signing of - 400
MOU with state govt.
8. ESCROW cover (Private Sector) 500 -
9. R&R issues - 400
10. Court Cases - 675
11. Law & Order problem 500
Total 7458 5058
(The details are given in Para 1.5 of Main Working Group Report)

It is pertinent to point out that a number of projects of 10th plan ordered on BHEL
were delayed due to delayed and non-sequential supply of equipment and
materials and inadequate manpower in commissioning teams. Some of the
projects expected to be commissioned during the last quarter of 2006-07 are also
running behind schedule due to the above reasons.

1.2 GROWTH IN ENERGY GENERATION

1.2.1 Growth in Generation During 10th Plan

The growth in generation has been 3.2%, 5.1%, 5.2% and 5.2% during 2002-03,
03-04, 04-05 and 05-06 respectively. In the year 2006-07(upto Dec-2006) a
growth rate of 7.5 % has been recorded. The Compounded Annual Growth
Rate(CAGR)of generation during the 10th Plan period is expected to be about
5.1%. However, higher growth could have been achieved if adequate gas would
have been available for the existing and new gas based plants commissioned
during 10th plan.

1.2.2 Growth in Generation during 11th Plan

As per the Integrated Energy Policy (IEP), issued by the Planning Commission,
GDP growth rates of 8%-9% have been projected during the 11th Plan. Assuming
a higher growth rate of 9% and assuming the higher elasticity projected by the
IEP of around 1.0, electrical energy generation would be required to grow at 9%
p.a. during the 11th plan period. Also generation has to be collectively met by
utilities, captive plants and Non-conventional energy sources. No reliable plans

3
th
Executive Summary Working Group on Power-11 Plan (2007-12)

about captive power capacity expansion are available but based on indications
available from the manufacturers for addition in captive capacity and present
utilization of available capacity, the generation from captive plants is expected to
increase from 78 BU to 131 BU per annum. Since the load factor of non-
conventional energy sources is very low (about 20% on an average), even
though the capacity projected by MNRE from these sources is about 23,500 MW
by the end of 11th Plan, the expected generation would be only around 41 BU.
The generation from these renewables however has not been taken into account
for planning purposes. Based on these assumptions following scenario emerges:

(i) Likely energy Generation by utilities in 2006-07 663 BU


(ii) Likely Energy Generation by captive plants in 2006-07 78 BU
(iii) Total Likely Generation in 2006-07 741 BU
(iv) Compounded Annual Growth Rate 9%
(v) Required Energy Generation by 2011-12 @ 9% growth rate over 741 BU1140 BU
(vi) Less Estimated Energy Generation by captive plants in 2011-12 131 BU
(vii) Total Estimated Generation Requirement from Utilities by 2011-12 1008 BU

However to meet the objectives of NEP to increase the per capita consumption to
1000 units by the year 2011-12, the requirement of generation works out to 1210
BU, assuming a population of 121 crores in 2011-12 as per projections of
Census 2001. After excluding the generation from captive plants (131 BU) and
that from renewables (41 BU), the requirement of generation from utilities works
out to 1038 BU. This would require a generation growth rate of 9.5% p.a
(CAGR)for utilities.

1.2.3 Growth in generation During 12th Plan

During the 12th Plan period, assuming a GDP growth rate of 9% per annum and
elasticity 0.8 as compared to 1.0 during 11th plan mainly due to adoption of
energy efficient technologies & other Energy Conservation and Demand Side
Management measures being taken up during 11th Plan, electricity demand is
likely to grow @ 7.2% p.a. Keeping this in view, the energy generation should
increase to a level of 1470 BU by 2016-17 from a level of 1038 BU in 2011-12.
However sensitivity analysis have been carried out assuming 8,9 & 10 % GDP
growth rates & GDP-electricity elasticity of 0.9 & 0.8 respectively and the same is
given in table below:

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Executive Summary Working Group on Power-11 Plan (2007-12)

Generation Requirement for 2016-17


( As Per 8,9,10 % GDP Growth)

GDP GDP/ Electricity


Growth Electricity Generation
Elasticity Required
(BU)
8% 0.8 1415
0.9 1470
9% 0.8 1470
0.9 1532
10 % 0.8 1525
0.9 1597

1.3 APPROACH TO SELECTION OF PROJECTS FOR 11TH PLAN

Keeping in view the lessons learnt from 10th plan while planning for capacity
addition during 11th Plan, cautious approach have been adopted while choosing
projects for commissioning in the 11th plan. It has been the endeavour to include
only such projects as have high degree of certainty of implementation during 11th
Plan.

The approach adopted for selection of Hydro, Thermal and Nuclear projects have
been as follows:

1.3.1 Hydro

India is duly concerned about climate change and efforts are on to promote
benign sources of energy. Hydro Power is one such source and is to be
accorded priority also from the consideration of energy security. Irrespective of
size and nature of hydro projects, whether ROR or Storage projects, these are all
renewable technologies. However, execution of hydro projects requires thorough
Survey and Investigation, preparation of DPR, development of infrastructure, EIA
and other preparatory works, which are time consuming and require two to three
years for their preparation. It would take about 5 years to execute a hydro project
after the work is awarded for construction. Thus in order to achieve completion of
a hydro project during 11th plan, the project should either be already under
construction or execution should start at the beginning of the plan. The broad
criteria adopted for selection of hydro projects for 11th plan are as under:

• Those hydro projects whose concurrence has been issued by CEA and
order for main civil works is likely to be placed by March 2007.

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Executive Summary Working Group on Power-11 Plan (2007-12)

• Apart from the above, a few hydro projects of smaller capacity which are
ROR type having surface power houses and where gestation period is
expected to be less than 5 years have also been included. These projects
would need to be rigorously followed up for completion during the 11th
Plan.

Keeping in view the preparedness of various hydro projects, a capacity addition


of 15, 585 MW is envisaged for 11th Plan.

(The details of projects are given in Appendix 1.8- in Chapter-1 of main Working Group Report.)

1.3.2 Nuclear

Nuclear is environmentally benign source of energy and over a period of time,


its proportion in total capacity should increase. Keeping in view the availability
of fuel, a moderate capacity addition of 3,160 MW nuclear plants has been
programmed during the 11th Plan by the Nuclear Power Corporation. All
projects are presently under construction. However, in view of the recent
developments in the Nuclear Sector, capacity addition in nuclear plants during
12th Plan is expected to be much higher.

(The details of projects are given in Appendix 1.8- in Chapter-1 of main Working Group Report.)

1.3.3 Thermal

Gas
Although gas is relatively a clean fuel, at present there is uncertainty about
the availability, period of availability and price of gas. Only 2,114 MW gas
based capacity has been planned for 11th Plan where gas supply has already
been tied up. This does not include NTPC’s gas based projects at Kawas and
Gandhar, totalling to 2,600 MW, for which NTPC says that it has the gas
supply contract but the matter is sub-judice. However more gas based
projects could be taken up for construction as and when there is more clarity
about availability and price of gas.

(The details of projects are given in Appendix 1.8- in Chapter-1 of main Working Group Report.)

Coal & Lignite based Thermal plants

Coal is expected to be main stay of power generation in the years to come.


The following criteria have been adopted for identifying the coal and lignite
based projects for inclusion in the 11th plan.

• Such projects as have already been taken up for execution in the 10th
Plan period itself and are due for commissioning in the 11th Plan period.
• Those thermal projects whose LOA has already been placed by the State
and Central Public Sector Corporations, other inputs also being in place.

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Executive Summary Working Group on Power-11 Plan (2007-12)

• Those thermal projects whose LOA has already been placed and the
financial closure achieved by private developers.
• Those thermal projects whose LOA is expected to be placed by 30th Sept,
2008 and commissioning is expected during the 11th Plan keeping in view
the normal gestation period, the size of the plant & the type(green
field/expansion).

After discussion with the various State Government and Central Generating
Companies, thermal projects with total capacity of 46,635 MW of coal based and
1375 MW lignite based capacity have been identified for capacity addition during
11th plan.

(The details of projects are given in Appendix 1.8- in Chapter-1 of main Working Group Report.)

1.4 CAPACITY ADDITION DURING 11TH PLAN (2007-12)

Based on the preparedness of the projects, it was envisaged that a capacity of


about 68,869 MW is feasible for addition during 11th plan period. The sector wise
break-up of feasible capacity addition during 11th plan is given in Table below:

SECTOR HYDRO TOTAL THERMAL BREAKUP NUCLEAR TOTAL


THERMAL (%)
COAL LIGNITE GAS/LNG
CENTRAL 9685 23810 22060 1000 750 3160 36655
(53.2%)
STATE 2637 20352 19365 375 612 - 22989
(33.4%)
PRIVATE 3263 5962 5210 0 752 - 9225
(13.4%)
ALL-INDIA 15585 50124 46635 1375 2114 3160 68869
(100%)

In addition to above, thermal projects totalling to 11,545 MW have been identified


as best effort projects. These projects would normally be commissioned in the
beginning of 12th Plan but in case of any constraints in taking up of any of the
projects included in 11th plan, some of these projects would be tried for
commissioning during 11th Plan.

Further, a capacity of 13,500 MW has been planned under renewable as per


information given by MNRE.

As can be seen from the above profile of capacity addition plan, central sector
will play a lead role with capacity addition of more than half of the capacity
addition target. There has been a good response from states on the need for

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Executive Summary Working Group on Power-11 Plan (2007-12)

capacity addition to meet their growing demand and the states with IPPs, have
been given target for achieving the balance capacity. The State owned capacity
projected for the 11th Plan is 33.4 % of the total plan as compared to 27% likely
during 10th Plan.

Out of feasible capacity addition of 68,869 MW, projects totalling to 31,345 MW


are already under construction and the balance projects totalling to 37,524 MW
have been committed for implementation by the concerned generating
companies during the 11th Plan. Details are furnished in the Table below:

THERMAL
TOTAL BREAKUP
SECTOR HYDRO NUCLEAR TOTAL
THERMAL
COAL LIGNITE GAS/LNG
Projects Under
11931 16254 14115 1125 1014 3160 31345
Construction
Committed
3654 33870 32520 250 1100 - 37524 *
Projects
Total 15585 50124 46635 1375 2114 3160 68869

(The details of projects are given in Appendix 1.8- in Chapter-1 of main Working Group Report.)

* Note: Out of the projects totalling to 37,524 MW under committed category as given above,
orders for Dadri Unit-6 (490 MW) & Mezia Ph-II (1000 MW) has been recently placed.

The thermal capacity addition comprises of1 unit of 800 MW, 11 units of 660
MW, 53 units of 500/600 MW class, 49 units of 210/250/300 MW class, 7 units of
110/125 MW class.

With the above capacity addition it would be possible to meet the projected
energy requirement of 1038 BU (considering peak demand of 1,51,500 MW) for
meeting per capita consumption of 1000 units at the end of 11th plan. With this
capacity addition it would be feasible to achieve a generation growth rate of 9.5%
p.a. (CAGR)

1.5 FUEL REQUIREMENT

The requirement of various fuels for the thermal plants during the terminal year of
the 11th Plan (2011-12) at normative generation parameters (PLFs and specific
fuel consumption is summarised in the table below. This is based on a thermal
capacity addition of 20,387MW and 50,124MW during the 10th and 11th Plan
respectively.

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Executive Summary Working Group on Power-11 Plan (2007-12)

Fuel Requirement (Tentative) during 2011-12

Fuel Requirement (2011-12)


Coal* 545 MT
Lignite 33 MT
Gas/LNG** 89 MMSCMD

(The details of projects are given in Appendix 1.9- in Chapter-1 of main Working Group Report.)

* From domestic sources, total coal availability is expected to be 482 MT per


annum by 2011-12. Accordingly, imported coal of the order of 40MT,
equivalent to 63 MT of Indian coal, may have to be organised. This quantity
may reduce provided production of domestic coal is increased.

** 89 MMSCMD of gas requirement at 90% PLF has been projected in 2011-


12. At present, the availability of gas is of the order of 40 MMSCMD and
therefore not sufficient to meet the requirement of even existing plants.

1.6 INITIATIVES DURING 11TH PLAN

1.6.1 High Hydro Development

50,000 MW Hydro Initiative was launched in 2003 and Preliminary Feasibility


Report (PFRS) of 162 projects totalling to 48,000 MW were prepared. Out of this
77 projects with total capacity of about 37000 MW for which first year tariff is
expected to be less than Rs.2.50/unit were selected for execution. Hydro
projects have longer gestation period and therefore there is a need to formulate a
10 year plan for hydro projects. In 11th plan a capacity addition of over 15,500
MW has been targeted keeping in view the present preparedness of these
projects. Projects totalling to a capacity of 30,000 MW have been identified for
12th Plan on which necessary preparations have to be made from now onwards
to ensure their commissioning during 12th Plan. Thus the effect of 50,000 MW
initiative would be visible in 12th Plan period. Preparation of DPR and various
clearances and approval etc for these projects are to be obtained during the first
two years of 11th Plan. It is recommended that CEA should closely monitor the
progress of preparedness of DPR of these projects and their further execution.

1.6.2 Initiatives in Thermal Power Development:

Efforts were made to bring in highly efficient super critical technology in the
country for thermal power plants and execution of six super critical units of 660
MW capacity each was taken up during the 10th Plan period. The first unit of 660
MW based on super critical technology is likely to be commissioned during the

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Executive Summary Working Group on Power-11 Plan (2007-12)

first year of 11th Plan i.e. 2007-08. The 11th Plan feasible capacity addition of
coal based plants includes 12 units based on super critical technology with a
capacity of 8060 MW which is about 18% of total coal capacity planned for 11th
Plan. More and more power projects based on super critical technology are
under planning stage and they would yield benefit during the 12th Plan period.
It is envisaged that more than 50-60% of capacity addition of thermal plants
during 12th plan period would be based on super critical units. This would also
help in reducing the Carbon dioxide emission from new coal fired capacity.

1.6.3 Ultra Mega Power Projects (UMPP):

Ministry of Power in the year 2006 has launched an initiative of development of


coal based ultra mega projects with a capacity of 4,000 MW each on tariff based
competitive bidding. Ultra Mega Power projects are either pit head based
projects having captive mine block or coastal projects based on imported coal.
Sasan UMPP, a pithead plant in Chattisgarh based on domestic fuel and Mundra
UMPP in Gujrat based on imported coal have already been awarded for
execution to the respective developers. According to the bids submitted by these
developers only one unit of 660 MW is expected to be commissioned during the
11th Plan and the remaining unit during 12th Plan. Other projects where
considerable progress has been made are coastal projects in Andhra Pradesh
and Tamil Nadu and a pit head based project in Jharkhand. Further the projects
under consideration include pit head projects in Orissa and Chatisgarh and
coastal projects in Maharashtra and Karnataka.

1.6.4 Nuclear Power Development:

11th Plan power programme includes 3160 MW of nuclear power plants all of
which are under construction. Recently, agreement has been signed with USA in
respect of nuclear co-operation which is expected to improve the supply of
nuclear fuel for nuclear power plants. It is also expected that execution of
nuclear projects will also be opened up to enable participation by other PSUs and
private sector. The effect of this is likely to be visible in 12th Plan period. Nuclear
Power Corporation of India has indicated a capacity addition of about 11,000 MW
during 12th plan. In addition, NTPC have also expressed their intention to enter
into the nuclear power arena and have proposed an addition of 2,000 MW during
12th plan period.

1.6.5 Merchant Power Plants:

A merchant power plant does not have long term PPA for sale of its power and is
generally developed on the balance sheet of developers. Government of India
has reserved coal block with reserves of 3.2 Billion Tons of coal for allotment by
Screening Committee of Ministry of coal for merchant and captive plants. About
10,000 MW capacity is expected to be developed through this initiative. This
capacity has not been taken into account while working out the capacity required

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Executive Summary Working Group on Power-11 Plan (2007-12)

in the 9.5% growth in generation scenario. Capacity addition through this route
would further contribute to better economic growth, better reliability of power,
more spinning reserve and above all would promote creation of competition in
the electricity market.

1.6.6 Decentralised Distributed Generation (DDG):

In some of the remote areas, it is not techno-economically feasible to extend the


grid supply. For meeting the demand of such remote areas, it is proposed to set
up some power plants based on local energy sources available. These are small
hydro and non-conventional sources such as Bio-Mass, Wind, DG sets etc
wherein other sources are not available. During the XI plan period a capacity
addition of about 5,000 MW of capacity under DDG is envisaged.
(Refer Para 3.1 of the Report)

1.7 CAPTIVE POWER PLANTS

The generation from captive power plants at the end of X plan (2006-07) is likely
to be about 78 billion units. It is envisaged that during the XI plan period about
12,000 MW capacity power plants would be added to the system which will take
care of the demand of the industry and also supply surplus power to the grid
under Open Access arrangements which has been allowed as per the Electricity
Supply Act, 2003.

It is envisaged that the generation from non utility captive power plants by the
year 2011-12 may be of the order of 131 billion units which results into a CAGR
of 10.5% p.a in captive generation.

1.8 12TH PLAN SCENARIO

The requirement of installed capacity and capacity addition to meet the


generation requirement during the 12th Plan period as discussed in Para 1.2.2 of
this Report are given in Table below:

Capacity addition required during 12th plan (2012-17)

GDP GDP Electricity Peak Installed Capacity Addition


Growth /Electricity Generation Demand Capacity Required During 12th
Elasticity Required (BU) (MW) (MW) PLAN (MW)
8% 0.8 1415 215700 280300 70800
0.9 1470 224600 291700 82200
9% 0.8 1470 224600 291700 82200
0.9 1532 233300 303800 94300
10 % 0.8 1525 232300 302300 92800
0.9 1597 244000 317000 107500

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Executive Summary Working Group on Power-11 Plan (2007-12)

It would be seen from the above table that under various growth scenarios, the
capacity addition required during 12th plan would be in the range of 71,000 -
1,07,500 MW, based on normative parameters.

The Working Group recommends a capacity addition of 82,200 MW for the 12th
Plan based on Scenario of 9% GDP growth rate and an elasticity of 0.8%.

During 12th plan about 30,000 MW capacity addition is likely to be based on


hydro and about 11,000-13,000 MW will be nuclear based. The balance capacity
addition of about 50,000 MW will be from thermal projects. A shelf of projects
totalling over 1,50,000 MW has been identified & listed in main report.

1.9 RENOVATION & MODERNIZATION, LIFE EXTENSION AND PIE


PROGRAMME

A Renovation and Modernisation (R&M) Programme for Thermal Power Stations


was launched by the Government of India all over the country way back in
September 1984 for completion during the Seventh Plan Period. This
programme was successfully completed and intended benefits were achieved. In
the subsequent 8th and 9th Plans, Renovation and Modernisation and Life
Extension (LE) works were carried out on a number of older generating units
which resulted in improvement in their performance and extension of their useful
life.

In the 10th plan life extension of 106 Nos of thermal units totalling to 10,413 MW
was envisaged. However progress was not satisfactory due to high execution
time & cost involved in LE works. The cost of LE was also not economically
feasible considering the age of plants and there was reluctance from power
plants to shut down their units for longer periods due to prevailing power
shortages.

In view of above a new initiatives called Partnership of Excellence was taken up.
Under this programme generating companies who were performing well provide
assistance in improving performance of non-performing units by following
measures;

Phase-I: Toning up of O&M Practices


Phase-II: Comprehensive Overhaul
Phase-III: LE for those units were found techno-economically feasible.

Towards this initiative, CEA identified 22 power stations of 11 utilities, with a


capacity of 7930.5 MW across the country. Out of these, 17 stations with an
operating capacity of 5050 MW were entrusted to NTPC and one stations (280
MW) to TATA power. On remaining 4 stations the respective utilities are taking
their own course of action. The plants entrusted to NTPC recorded an additional
generation of power-3690 MUs- corresponding to an equivalent capacity addition

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Executive Summary Working Group on Power-11 Plan (2007-12)

of 720 MW, considering national average PLF. Capacity addition of this order
requires an investment of around Rs.3,000 crore at a Greenfield project. The
phase-II of the programme, therefore, needs to be continued. Some additional
units have also been identified for R&M and life extension. The decision for
investment for R&M/LE will be based on cost benefit analysis. If not economically
viable installation of new plants at existing sites, may be considered.

(The details of R&M, LE & PIE programme and their status are given in Chapter-1,Para 1.15 of
main Working Group Report)

1.10 NEW AND RENEWABLE ENERGY SOURCES

The Ministry of New and Renewable Energy Sources (MNRE) have chalked out
plan of adding 13,500 MW of renewable power in the country during 11th Plan
period. This would make total installed capacity of these plants at 23,500 MW by
the year 2011-12 which is detailed as below:

Wind - 17000 MW
Bio Mass - 3200 MW
Small Hydro- 3300 MW

Although installed capacity of the plants is high but on an average plant load
factor of wind turbine plants is only of the order of 15-20% and as such this
capacity can generate about 41 billion units at the maximum.

1.11 RECOMMENDATIONS

1. The Working Group recommends generation planning based on growth of


energy generation requirement of 9.5%. Keeping in view the above
objectives and preparedness of various projects the Working Group
recommends capacity addition of 68,869 MW during 11th Plan as per
details given below:

SECTOR HYDRO TOTAL THERMAL BREAKUP NUCLEAR TOTAL


THERMAL (%)
COAL LIGNITE GAS/LNG
CENTRAL 9685 23810 22060 1000 750 3160 36655
(53.2%)
STATE 2637 20352 19365 375 612 - 22989
(33.4%)
PRIVATE 3263 5962 5210 0 752 - 9225
(13.4%)
ALL-INDIA 15585 50124 46635 1375 2114 3160 68869
(100%)
(Detail list is in Appendix-1.8 of main Working Group Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

2. States are required to take an active role in the capacity addition


programme by their own agencies & by private sector participation through
tariff based competitive bidding route on the lines of developments of
Ultra Mega Power Project. In the 11th plan addition of less than 50% of
total capacity is targeted in states and private sector. It is recommended
that in 12th Plan more than 50% capacity should come through initiative of
the states.
3. Some of the states do not have resources for capacity addition in their
states. Such states should tie up long term PPAs with surplus
states/generation companies.
4. Manufacturing capacity of BHEL needs to be enhanced to meet the
capacity addition programme envisaged in 11th & 12th Plans.
5. A 10 year plan for hydro development is to be pursued in view of higher
gestation period. A hydro capacity of 30,000 MW has been identified for
commissioning during 12th Plan. The survey and investigation, preparation
of DPR, statutory clearances should be vigorously followed up right from
now to enable their commission during 12th Plan. The CEA should closely
monitor progress on these projects. .
6. The Working Group recommends continuation of PIE programme during
11th Plan also.
7. In addition to capacity addition programme, concerted efforts to continue
in regard to:

- Development of captive power plants.


- Maximising Generation from existing plants.
- Energy Efficiency improvement through Energy Audit.
- Better O & M practices.
- RM&U/Partnership in Excellence (PIE) Programme.
- Development of Non-Conventional Energy Sources.

8. Major recommendations for facilitating open access in distribution and


harnessing surplus captive generation in the country are as under:

¾ Reasonable cross subsidy surcharge and other charges to provide


some economic incentive to the generators to avail open access.
¾ The SERCs should allow recovery of some portion of fixed cost in
addition to the variable cost of captive generation. The captive
generators may offer their surplus power on the basis of a firm
schedule. Infirm power from CPP should also be considered for
purchase.
¾ There should be no penalty for reduction of contract demand by any
industry having captive plant.

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Executive Summary Working Group on Power-11 Plan (2007-12)

2.0 TRANSMISSION PLANNING INCLUDING NATIONAL GRID


The transmission system facilities had earlier been planned on regional basis
with provision of inter-regional link to transfer regional surplus power arising out
of diversity in demand. The generation resources in the country are unevenly
located, the hydro in the northern and north-eastern states and coal being mainly
in the eastern part of the country. Development of strong National Grid has
become necessity to ensure reliable supply of power to all. The planning &
operation of the transmission system has thus shifted from regional to national
level. Formation of a strong National Power Grid has been recognized as a
flagship endeavour to steer the development of Power System on planned path
leading to cost effective fulfilment of the objective of ‘Electricity to All’ at
affordable prices. A strong All India Grid would enable exploitation of unevenly
distributed generation resources in the country to their optimum potential by
providing enhanced margins in inter-regional transmission system. These
margins, together with open access in transmission, would facilitate increased
trading in electricity leading to market determined generation dispatches thereby
resulting in supply at reduced prices to the distribution utilities and ultimately to
consumers benefit.

2.1 PROGRAMME OF DEVELOPMENT OF NATIONAL GRID

As on today, the inter-regional transmission capacity of 11,450 MW is existing


and inter-regional energy exchanges of more than 12 billion kWh in a year are
taking place contributing to optimum utilization of generation capacity. The
program is to achieve inter-regional capacity of 15750 MW by the end of 10th
Plan and about 37,150 MW by the end of 11th Plan. Transmission systems
within the regions to support the above inter-regional transmission capacity has
been also planned. The plan for National Power Grid and the schemes have
been identified. (Ref 2.2 of Main Working group Report)

2.2 North Eastern region, Sikkim and Bhutan have vast untapped hydro potential
which is planned for development during 11th plan and beyond. A major
component of this power will be utilised by deficit states in the northern and
western region and for which reliable evacuation system is planned to be
developed. The requirement of transmission system for evacuation of NER hydro
power has been estimated corresponding to the capacity of hydro projects which
may be feasible to develop say in the next about 20 years. This generation is
estimated to be about 35000 MW in NER, about 8000 MW in Sikkim and about
15000 MW in Bhutan. Taking local development at accelerated pace resulting in
demand within the NER, Sikkim and Bhutan to be in the range of 10000 – 12000
MW (presently it is about 1500 MW), the transmission requirement through the
chicken neck works out to be of the order of 45000 MW. The total requirement
including additional circuits for meeting the contingencies and reliability needs,

15
th
Executive Summary Working Group on Power-11 Plan (2007-12)

would work out to 7 or 8 numbers of 800 KV HVDC bi-pole lines and 4 or 5


numbers of 400kV double circuit lines – a total of 12 numbers of high capacity
transmission corridors passing through the chicken neck. For this, RoW
requirement would be about 1.5 Km in width considering minimum distance
between adjacent towers to be such that fall of any tower does not affect the
adjoining line. The first 800kV HVDC bi-pole line has been planned from a
pooling substation at Biswanath Chariyali in North-eastern Region to Agra in
Northern region. This is being programmed for commissioning matching with
Subansiri Lower HEP in 2011-12.

2.3 ASSESSMENT OF TRANSMISSION CAPACITY REQUIREMENT

The focus of transmission system development programme for the XI Plan is to


provide adequate inter-regional and intra-regional transmission capacity so as to
consolidate and strengthen the National Grid network towards a strong All India
Grid. The inter-regional power exchange requirement has been assessed from
possible scenarios of regional surpluses and deficit for the peak and off-peak
conditions of winter, summer and monsoon months. Projections of deficit/surplus
based on which transmission requirement has been assessed are given in
Chapter-8 of this report. The projection based on programme of generation and
anticipated demand aims at estimating the transmission requirement at the inter-
regional level. Grid expansion plan evolved based on this projection would be
able to cater to the needs of various feasible operating scenarios and also
provide required margins to support market oriented power exchanges.

(Ref Para 2.3 of main Working Group Report)

2.4 TRANSMISSION CAPACITY FOR TRADING

The above method adopted for evolving the transmission system expansion plan
provides sufficient transmission capacities which would have inherent margins for
trading transactions. Transmission system implemented on the basis of the
expansion plan evolved in this manner would enable trading across the regional
boundaries towards optimal utilization of generation resources in the country for
ultimate benefit of the consumer. As the system is evolved based on extreme
dispatches, it would facilitate trading most of the time without congestion.
Currently, trading is taking place through short-term bilateral contracts. With
introduction of Power Exchange at National level, which is being envisaged to be
in place in near future, trading would also take place through Power Exchange
which would be day ahead contracts. All the short term as well as Power
exchange transaction would need transmission capacity which would come out of
the spare capacity inbuilt in the transmission system. The reliability and
operational margins in the planned and implemented transmission system
corresponding to the committed long-term transmission needs would provide the
transmission capacity for trading of power.

(Ref Para 2.5 of main Working Group Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

2.5 TRANSMISSION CAPACITY MARGINS

Transmission capacity through creation of additional transmission system could


be provided based on long-term commitment for the transmission charges. It has
been estimated that reliability and operation margins would be generally of the
order of 25-30% of the transmission capacities required for meeting the firm
transmission needs of the long-term open access. This level of redundancy
would generally provided sufficient margins for trading needs. However, it should
be noted that short-term open access (STOA) transactions operating on these
margins, even if curtailable, cause reduction in the security level. Therefore,
unless margins are increased by design, the system operator would have
tendency to keep cushions by underestimating the operational margins. As such,
and as the system security is of paramount importance, creation of increased
margins by design becomes essential for accommodating STOA.
(Ref para 2.5 of main Working Group Report)

2.6 TRANSMISSION PLANNING CRITERIA

The network expansion has been planned to provide a reliable power system
with sufficient redundancies for secure operation maintaining adequate margins
at all times to maintain system parameters with in such limits that contingencies
do not lead to loss of system integrity. The contingency criteria is based on ‘N-1’
in general and ‘N-2’ for large generating complexes and multi-line corridors.

2.7 TRANSMISSION SYSTEM FOR MERCHANT PLANTS

Merchant plants would sell their power to customers who are not predetermined
through Power exchange contracts. However, they are long term-user of the
transmission system. The transmission system for the connectivity of the
merchant plant as well as for meeting their transmission needs is required to be
planned and built matching with the implementation of the merchant generation
plant. Also, some of the generation plants have only a part of their generation
capacity tied-up in long-term bi-lateral PPAs. When such plants seek long-term
open access only for a part of their full generation capacity, they inherently also
seek connectivity for the remaining capacity which would be available with them
as a merchant plant capacity. As the transmission system in both the cases
would be required to be planned and implemented corresponding to the full
requirement, they are long-term beneficiary of the transmission system. For
proper planning and implementation of transmission system, the merchant
generators need to inform about region(s) in which they would generally sell their
power, so that transmission system requirement for evacuation of their power
and transmitting it to identified load centres could be assessed and any additional
capacity required could be planned. As building the identified transmission
schemes including obtaining necessary approvals by the identified transmission

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Executive Summary Working Group on Power-11 Plan (2007-12)

company /companies would generally require almost same time as that for
implementation generation projects, firming up of sellers and assessment of
transmission requirement should be started at the earliest.

(Ref para 2.5 of main Working Group Report)

2.8 TRANSMISSION SYSTEM UNDER STATE SECTOR

A well planned and reliable transmission system at the National and Regional
level would need to be complemented with development of matching
transmission system at 220kV and 132kV and also the sub-transmission and
distribution system so as to cater to the load growth and ensure proper utilisation
of development in generation and transmission facilities for the ultimate goal of
delivery of the services up to the end consumers in the country.

Inadequate development of sub-transmission and distribution system facilities in


the States of NER has been adversely affecting the reliability of power supply to
the consumers and also hampering the load growth in the region. The
transmission, sub-transmission and distribution systems of states require major
strengthening/up-gradation. Transmission lines that are under outage require
speedy restoration for bringing them into operation so that the states could avail
their central sector shares as well as utilize their own generation without any
constraint.

Inadequacies in the transmission and distribution system had been on account of


slow implementation of schemes due to various factors such as time consumed
in E&F clearances, land acquisition, RoW constraints, fund limitation,
organizational difficulties of state utilities, lack of vendor response due to
locational factors, law and order, terrain specific difficulties, etc. Due to limited
funding capabilities of state utilities, most of the required transmission projects
are generally funded by NEC or by NLCPR under DONER and
investment/funding approval of scheme so funded also takes additional time. All
these issues need to be addressed to achieve the accelerated demand growth in
NER.

2.9 ELEVENTH PLAN PROGRAMME

2.9.1 Evolving the Perspective Transmission System for XI Plan

In transmission system development in the country, the focus of XI Plan


programme is formation of the National Power Grid. A strong All India Grid would
enable exploitation of unevenly distributed generation resources in the country to
their optimum potential. The transmission capacity together with the margins
provided for required redundancies as per planning criteria would provide a
reliable transmission system. This would meet the firm transmission needs and
with open access in transmission, would facilitate increased real time trading in
electricity leading to market determined generation dispatches thereby resulting

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Executive Summary Working Group on Power-11 Plan (2007-12)

in supply at reduced prices to the distribution utilities and ultimately to the


consumers. Development of National Grid has been necessitated by the large
thermal generation potential in eastern part of the country and equally large
hydro generation potential in north-eastern part. It has also been spurred by the
opportunity provided by open access, variation in hydrology / hydro potential and
diversity of load across the country.

It is envisaged to add during the XI plan period new inter-regional capacities of


20700 MW at 220kV and above. This would increase the total inter-regional
transmission capacity of National Power Grid at 220kV and above from 16450
MW of XI Plan beginning to 37150 MW by 2011-12.

(Ref Para 2.3 of main Working Group Report)

2.9.2 Fund Requirement for Transmission System Development and


Related Schemes

Total Fund requirement for transmission system development and related


schemes has been estimated as following:

Rs Crores
Inter State system 75000
Intra State system 65000
TOTAL 140000

(For details please refer to Para 2.8 of main Working Group Report)

2.10 TECHNOLOGY DEVELOPMENT

2.10.1 Adopting New Technologies In Transmission System

New technologies would need to be adopted and implemented in a proactive


manner to achieve the objective of optimum utilization of the available
transmission assets as well as conservation of Right-of-Way, reducing
transmission costs, reduction of losses etc. Some of the new technologies
adopted/being adopted in its transmission system include:

• High capacity 6000MW +800kV HVDC system


• 765kV AC Transmission System
• Ultra High Voltage AC Transmission System(1000kV)
• Application of Series Compensation
• Flexible AC Transmission System (FACTS)
• Upgradation/Uprating of transmission line
• High temperature endurance conductor
• Tall/Multi-circuit & Compact tower
• High Surge Impedance Loading Line (HSIL)

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Executive Summary Working Group on Power-11 Plan (2007-12)

• Remote operation of substation, substation automation and Gas Insulated


substation (GIS)
• All Aluminum Alloy Conductors (AAAC) and Polymer/Composite
Insulators.
• Development of disc insulators of 320kN & 420kN indigenously for both
AC & HVDC applications, as import substitution.
• Indigenous development of semi-conducting glazed insulators (Offering
better pollution performance)
• Introduced source/process inspection of equipment to ensure zero defect
• Airborne Laser Terrain Mapping (ALTM) for detailed route survey
• Thermo-vision scanning of the lines and sub-stations
• Conditional monitoring of equipment
• Preventive maintenance of Transformers using State-of-art Oil testing
laboratories set up by the company
• Emergency Restoration System (ERS)

For modernization of transmission system through latest technology integration,


two pronged strategies have been envisaged as under:

• Enhance capacity and reliability of existing systems.


• Suitable technology for new systems keeping in view the long term
perspective

3.0 DISTRIBUTION INCLUDING VILLAGE & HOUSEHOLD


ELECTRIFICATION

3.1 OVERVIEW OF DISTRIBUTION SECTOR

The electricity distribution section is the most daunting sector due to its interface
with the public at large with different needs and expectations and varying
degrees of capacity to pay. The distribution sector is the cutting edge and as the
need to improve this sector was realized, in the 10th plan the emphasis was on
steps to reduce the huge aggregate technical and commercial losses, control the
theft & pilferage and rationalise the tariff structures. Investment was also made in
the distribution sector and across the states reforms were taken up. Major
schemes like Accelerated Power Development & Reform Program for urban
areas and the Rajiv Gandhi Grameen Vidyutikaran Yojana was also initiated in
the 10th plan which aimed at bringing in investment in urban areas and creating
an electricity infrastructure in rural areas. There is however a pressing need to
continue these efforts in the 11th plan so as to reduce the AT&C losses and to
continue with the reforms in the distribution sector to provide an affordable,
good quality and reliable power supply to the citizen of India, be it in urban or
rural areas.

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Executive Summary Working Group on Power-11 Plan (2007-12)

The distribution of power can be studied in two distinct components viz. ,


(i) Distribution of power in urban areas, and
(ii) Distribution of power in rural areas.

(Refer Para 3.0 of main Working Group Report)

3.2 QUALITATIVE APPROACH

3.2.1 Distribution of power in urban areas

The Accelerated Power Development & Reform Program (ARDRP) was aimed at
bringing about improvement in the urban distribution sector by funding
investment in the distribution network, and by incentivising the states who
performed well in reducing losses. The Ministry of Power constituted a task force
in 2006 under Shri P. Abraham which has recommended that APDRP may be
continued with investment and incentive component beyond the 10th plan.
However the conditions may be made more stringent and reform oriented. While
broadly agreeing with recommendations of the Abraham Committee report, it is
felt that APDRP needs to be continued in 11th plan with revised terms and
conditions. The focus of the programme should be on establishment of base line
data, which shall enable reduction of AT&C losses in major towns of the country
through strengthening , upgradation of sub-transmission and distribution network
and adoption of Information Technology in the areas of energy accounting &
auditing and improvement in consumer services through establishment of Bijlee
Sewa Kendras. The programme may focus on the town and cities covering all
district headquarters and town with population of more than 50,000 and town with
lesser population in special category sates . The investment and incentive
components may be merged and funding may be in form of loan assistance with
the provision of conversion of loan to incentives to the distribution companies on
achieving specified milestones with regard of reforms and reduction of AT&C
losses. There also needs to be a provision of incentive to the employees of the
utilities. The loan assistance may be converted to grant (50 % for general
category states and 90 % for special category states) and the loan should be
from Central Sector with a moratorium of three years on interest and on
repayment. The rate of interest may be as determined by Ministry of Finance
from time to time. ADDRP assistance should be also available to private
distribution companies as the ultimate beneficiary was the consumer. The loan /
grant needs to be funded under Central sector through REC / PFC.

3.2.2 Distribution of power to rural areas

RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojna) aims to achieve power for
all by 2009 and in the long run accelerate rural development, adequate
employment and eliminate poverty through irrigation, development of small scale
industries, provision of health care and promotion of education and information

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technology. RGGVY also aims at bridging the urban rural gap and provide
reliable quality power supplies to rural areas.

However, in order to bring about access to electricity to all rural households,


there would be need to widen the electricity coverage to hamlets / habitations of
the country. In case the funding of RGGVY becomes a constraint it is proposed
that in the first phase all un-electrified villages and hamlets with more than 300
population are covered. Those hamlets with less then 300 populations may be
excluded except those in hilly, forest, desert and tribal areas. The total cost of
phase 1 is estimated at Rs. 24,000 crore. Phase 1 would be completed by 2009
and would reach electricity to all the un-electrified villages and about 3 lakh
hamlets. The second phase would start from 2009 onwards and would reach
electricity to the balance un-electrified hamlets and complete the task of
providing access to all rural households by 2012 . Second phase is estimated
around Rs. 16,000 crores. The two phases is estimated around at Rs. 40,000
crores .

(Refer Para 3.7 of main Working Group Report)

3.2.3 Prioritization of RGGVY

Maximum number of un-electrified villages exist in the under developed States.


RGGVY programme should give top priority in the allocation of funds for these
States. Second priority should be given for intensive electrification of such States
where the household electrification is below the national average. Third priority
should be on the intensive electrification for the remaining States.
(Refer Para 3.7.2 of main Working Group Report)

3.2.4 Public Private Partnership through rural franchisees

Management of rural infrastructure has to be based upon all inclusive growth


model that involves rural set ups and provides the local Panchayat Raj
institutions a supervisory function to ensure the durability and sustainability of
electricity infrastructure.

Franchisee system for management of rural distribution has been made


mandatory under RGGVY to make the revenue model sustainable. RGGVY
allows enterprising individuals, NGOs, private entrepreneurs, co-operatives,
Panchayat Raj institutions to become franchisees. The franchisees system needs
major push in 11th plan with initiatives for capacity building and financial support.

(Refer Para 3.23 of main Working Group Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

3.2.5 Financial support to Franchisees

Not many people are coming forward for franchiseeship especially from remote
rural areas where loads are small and sustainability difficult. As franchisees will
be mainly rural entrepreneurs, they will have difficulties in raising small funds for
their micro level projects to guarantee their performance or meet working capital
requirements. No funds have been allocated under RGGVY for development of
franchisees. It is necessary to develop institutions that extend micro credit to
meet the franchise level financing needs.

3.2.6 Distribution of power in Rural Areas through Decentralized


Distributed Generation (DDG)

Electricity Act, 2003 provides the requisite framework for accelerating


electrification in rural areas with necessary empowerment. It permits operation of
stand alone systems independent of the regulatory regime. Integrated Energy
Policy 2006 has estimated the requirement of power at 8,00,000 MW by 2031. It
implies that India must add 25000 MW or more every year for a quarter century.
It is a colossal task and would require exploitation of all renewable and fossil
resources. Secondly, the creation of huge rural village and block level electricity
infrastructure will require immediate supply of power. Village level energy
resources like biomass, hydro and solar energy will help to reduce the
dependence on grid based thermal, gas nuclear and hydro power. India has a
potential to generate 10-15000 MW of power from the available biomass. DDG
based on this resource will meet the critical needs of parched villages asking for
timely power. Cost of electricity should be based on cost to serve basis and DDG
to be taken up on a mission mode. Viability gap funding may be adopted in case
of grid interconnected schemes. Bio mass cultivation may be encouraged to
support DDG and bio-fuel cultivation to be funded by Financial Institutions (FIs) /
Banks. However, multifuel technologies may be encouraged.

(Refer Para 3.10 of main Working Group Report)

3.2.7 Pilot Programmes on DDG

The problem of providing power to rural areas would be critical when the
infrastructure under RGGVY becomes ready but remains without the supply of
power. To attract the entrepreneurs, REC may be encouraged to put up pilot
projects in the selective rural areas to have a demonstrative effect. Such
projects could be linked to the neighboring substations and incorporated as the
long-term lease infrastructure under RGGVY on cheaper finance. DDG will go a
long way to ameliorate the shortages of power in rural areas.

Nationwide survey of available resources in each villages to be undertaken in


fixed time frame through a nodal agency like REC.

(Refer Para 3.10 of main Working Group Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

3.2.8 One Megawatt Power Plants in Rural Areas

To meet the power supply requirements of rural areas stand alone / grid
connected power plants of optimum one megawatt capacity power plants should
be encouraged. REC should act as nodal agency for providing technical and
financial support under the scheme.

(Refer Para 3.18 of main Working Group Report)

3.2.9 Akshay Prakash Yojana

Maharashtra has launched a new programme called Akshay Prakash Yojana


aimed at demand side management. This programme has shown good results in
ensuring quality and reliable supply of power to the villages. Both consumers
and utilities are benefiting under this programme. It is recommended that this
programme should be popularized among other utilities.

3.2.10 Centres for Excellence for Distribution of Power

The Electricity Act has opened new avenues for variety of players to take up
distribution of power. In the changed environment and to seize the new
opportunities REC should set up centres of excellence for distribution of power in
all the states to take up rural distribution by setting up a subsidiary company.

(Refer Para 3.18 of main Working Group Report)

3.2.11 Non Discriminatory Supply Option

RGGVY scheme provides for making adequate arrangements for supply of


electricity and there should be no discrimination in the hours of supply between
rural and urban areas. To achieve this, there should be a clear allocation of
Power Supply for the rural areas.

3.2.12 Agricultural Sector

Agricultural consumption comprises of approx 20% to 40% of the total


consumption of the utility in the states. There is a fear with regard to depletion of
water table due to unrestricted exploitation of the ground water. The adoption of
flat rate pricing for agricultural power is cause for this perverse state of affairs.
Under this system, a farmer pays a fixed price per horsepower per month for
electricity. Therefore, the marginal cost of pumping water is zero. This leads to
energy wastage, over-pumping and inefficient selection of crops. Flat rate
pumping also masks the true cost of power to farmers. Agriculture consumption
is mostly un-metered and this allows manipulation of the loss by the utilities in the
name of Agriculture Consumption therefore, during the 11th plan all agriculture
connections need to be compulsorily metered

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Executive Summary Working Group on Power-11 Plan (2007-12)

3.2.13 Energization of Pumpsets in Eastern Region

Eastern sectors’ irrigation potential should be fully exploited during 11th Plan by
launching a special scheme for energization of pumpsets. It is estimated that
Eastern region has only 10% agricultural consumers. A targeted programme will
not only provide livelihood to the poor farmers but also provide food security to
the nation. Out of 35 lakh pumpsets energisation targeted for 11th Plan, 20 lakh
should be taken up in the Eastern region and other states where huge potential
exists

3.2.14 North-East and Backward Regions

In all the backward and north-eastern States the programme of electricity


distribution projects need to be supported with low cost funds along with
substantial portion of subsidy or grants. Rural Infrastructure Development Funds
(RIDF) available with NABARD should be utilized for the development of
electricity distribution in the North-eastern and other backward regions of the
country. For the System Improvement Schemes in these regions RIDF funds
may be allowed to be utilized for making available cheaper credit for an
accelerated development of these regions.

3.2.15 Tariffs

Performance based regulation through Multi Year Tariff (MYT) framework, is an


important incentive to minimize risks for utilities and consumers, promote
efficiency and rapid reduction of system losses. It would also bring greater
predictability to consumer tariffs by restricting tariff adjustments to known
indicators. Benchmarking should be properly adopted after adequate studies to
establish the desired performance standards. Regular review of the performance
levels also need to be suitably undertaken.

As regards Agricultural tariff it should be in consonance with the sustainable


water management requirements. A higher level of subsidies could be
considered to support poorer farmers of the region where adverse ground water
table condition requires larger quantity of electricity for irrigation purposes but
restricted suitably for maintaining ground water levels for a sustainable usage.
Even a combined tariff in such cases for electricity and water may be an option to
consider.

Differential tariffs for usage during different time of the day i.e. distribution based
on peaking or off peak hours etc. needs to be introduced expeditiously by
introducing Time of the day Metering to flatten the demand curve to more
manageable levels

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Executive Summary Working Group on Power-11 Plan (2007-12)

3.2.16 Open Access

Access to transmission and distribution network is one of the most important


elements of Electricity Act 2003 and National Electricity Policy 2005. At the retail
level the consumers with a minimum requirement of 1 MW are to be granted the
right to avail open access by 2009 in a phased manner. A consumer allowed
open access under the regulations is therefore free to choose any electricity
supplier other than the distribution licensee of its area.

The major issue in making open access operational is the level of cross-subsidy
and other charges applicable to open access consumers.

Most states have released open access regulations with the open access
phasing plan time frame.

The incumbent licensee may not like migration of creamy customers and put
barriers to prevent it. The open access customers may also fear discrimination
on availing supply from alternative source to the current retail supplies. In this
context the regulators have an important role to play in encouraging open
access. The 11th plan should focus on creating awareness, providing
communication, customer protection and promoting open access to the
consumers as envisaged in the Electricity Act 2003. Open access in distribution
should be in place including phasing out of cross subsidy surcharge by end of
11th plan.

3.2.17 Other issues

• Newly created distribution companies (consequent to reorganization of SEBs)


need to be given full autonomy. This should be a condition for release of
central assistance to the states.
• Huge investment is required for distribution network up gradation. The central
govt. should provide resources to the State Utilities with the condition that
large part would be treated as grant if targeted reduction in T&D losses is
achieved. There is a need to popularize TOD tariff.
• Separate distribution companies could be carved out for rural areas so that
subsidy could be targeted to only needy and poor consumers. Forum of
Regulators should come out with a model agreement for distribution of
electricity by distribution licensees through a franchisee in urban area.
• The licensee should have discretion to give rebate to a category of
consumers in the tariff determined by ERCs, if he considers it necessary, for
effectively facing the competition caused by open access in distribution.
• Where applicable , carbon credits should be obtained.
• A business model including simplified tariff determination for generation- cum-
distribution projects in rural areas should be developed to facilitate these
projects.

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3.3 QUANTITATIVE ASSESSMENT OF 11TH PLAN PROGRAMME

The expected outcomes from the 11th plan programme is given at Para 3.25 of
the report.

3.4 ISSUES OF INSTITUTIONAL NATURE LIKE CENTRAL , STATE &


PRIVATE SECTOR

3.4.1 Enlarging Role of central Government

Central Government should consider enlarging its role in the area of rural
distribution and generating station to give power to consumers in the vicinity.

Financial Institutions should support bio-diesel plantations, consultancy, R&D,


DPR preparation etc.

The priority sector status available to REC for the energisation of Agricultural
pumpsets etc was recently withdrawn which should be restored in order to
enhance the pumpset energisation programme during the 11th plan to at least 35
lakh pumpsets.

REC/PFC may finance the power equipment manufacturers in their


modernization and expansion plans.
REC/PFC may float Venture Capital Funds to encourage manufacture of critical
quality components used for power infrastructure and promote ready market for
such products at competitive rates.

3.4.2 State

All concessions extended by States for Industrial development may be given for
DDG projects.

A separate Rural Electricity Agency (REA) may be considered for each state to
look into needs of rural areas.

The State Govts., State Utilities/ Discoms and Local administration should create
proper enabling atmosphere to encourage DDG projects.

3.4.3 District Committees/ Local Management

The District Committees should be suitably strengthened, made fully functional


and active during the 11th Plan. This should cover all the districts in the country.
Specific funds should be allotted to the District Committees. Local institutions like

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Executive Summary Working Group on Power-11 Plan (2007-12)

Panchayat, cooperatives, NGOs, SHGs should be encouraged to take up local


management.

3.4.4 Private

The APDRP assistance, both investment and incentive component, may be


extended to the Private Distribution Utilities also. The incentive for loss reduction
by the private utilities may be given to the State instead of the utility.

3.5 TECHNOLOGY ASSESSMENT AND NEEDS

3.5.1 Pre-paid Meters

Pre-paid meters, should be promoted in the 11th Plan. This will enable efficient
use of power for agricultural use and will also eliminate adverse impact on water
table due to excessive exploitation of ground water. Though it involves huge
capital cost the gains from the system would offset such costs in the long run. It
is also expected that large scale use would bring down the cost of the
technologies.

3.5.2 HVDS System

The advantages of HVDS system are well known particularly in containing theft
of electricity. Besides, it improves the quality of power significantly and thereby
customer satisfaction. HVDS system needs to be given a special focus in the
11th Plan to get immediate results in loss reduction. Efforts should be made to
bring down HT/LT ratio during the 11th Plan.
(Refer Para 3.17 of main Working Group Report)

3.5.3 Priority to IT applications

It is well established that IT application can play a major role in AT&C loss
reduction and provide management of distribution utilities. The IT task force
clearly laid out a plan for introduction of IT on a large scale in the power
distribution sector. The task force recommendation should be implemented. It is
also suggested that the incentive fund under APDRP should be re-deployed for
promoting cost effective IT in the entire distribution sector.

3.5.4 Customer Indexing & GIS based Database

Customer indexing is absent in most of the utilities. This is a major impediment


for any reform in the sector. Consumer indexing has been done by some utilities
but incomplete. Consumer indexing based on GIS application needs to be given
priority in the 11th Plan.

3.5.5 Load Management

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In the scenario of energy and peak shortages, load management plays a very
important role for efficient use of energy. Feeder separation programme needs
to be given a major push in those states where agricultural consumption is more
than 20%. In addition SCADA/DA should be introduced in all the million plus
towns by the end of 11th Plan.

3.5.6 Demand Side Management & Energy Efficiency

Using of energy efficient devices should be incentivised. The focus should be on


use of efficient pumpsets in the agricultural sector. Use of CFL lighting etc.
should be encouraged. An awareness campaign should be launched to educate
stakeholders at all levels and quantifiable targets should be fixed to improve
energy efficiency gains.

3.5.7 Reliability Monitoring of Power Distribution System

Present reliability of power is carried out by CEA in terms of outages of 11 kV


feeders on monthly basis in respect of State capitals and major urban
conglomeration. There are number of reliability indices which are in practice
internationally. The international practices should be adopted for proper
monitoring of reliability. The reliability monitoring is to be gradually brought in line
with the world practice i.e. to measure the outage in terms of consumer hours
and number of consumer interruptions. The reliability monitoring will become
more fruitful once “Consumer Indexing” i.e. linking of every consumer to the
feeder is completed by all the Discoms /SEBs and will provide a direct index for
customer satisfaction.

3.5.8 Distribution Network Planning

Inadequate network planning is one of the reasons for hap-hazard and un-
scientific development of the distribution system. The utility should move to
proper distribution network planning both for demand forecasting on medium and
long term basis and for determining need for system expansion and improvement
to meet the load growth. Utility should prepare perspective network plan for 10
year period and this should become part of the conditionalities for sanction of
grants under various programmes.

3.5.9 Energy Accounting & Auditing

Energy Accounting & Auditing is done in many utilities but not comprehensive. In
absence of complete energy accounting and auditing, the system losses can not
be measured accurately and also identification of areas of losses becomes
difficult. 11th Plan should make efforts to standardize energy accounting and
auditing practices and incentivize utilities undertakings complete accounting and
auditing exercise.

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3.6 ASSESSMENT OF FINANCIAL REQUIREMENTS

The detailed table of quantities and financial requirements for 11th plan are given
at Para 3.25 of report. However, the final summary of the estimated cost is given
below:

1. Sub Transmission & Distribution for Urban & Rural areas: Rs. 1, 97,000 crore
RGGVY Rs. 40,000 crore
Rs. 2, 37,000 crore
2. APDRP & Other Schemes (pumpsets etc.) Rs. 40,000 crore
3. Decentralised Distributed Generation Rs. 20, 000 crore
4. Others Rs. 10,000 crore
TOTAL Rs. 3,07,000 crore

3.7 RECOMMENDATIONS

1. ARPDP to be continued in 11th plan with focus on auditing and accounting


and reducing AT&C losses in major town and cities It
interventions,technological upgradation, control of theft and pilferage, GIS
and consumer indexing and establishment of Bijlee Sewa Kendra.

2. RGGVY needs to be continued with more focus and with regular flow of
funds so that the envisaged benefits reach the rural masses.

3. Franchisees need to be developed in both urban and rural areas. A


scheme of public private partnership for franchisees development may be
encouraged .and adequate financial support through liberal micro credit
schemes needs to be given for encouraging franchisee development.

4. Decentralised distributed generation needs to be taken up in a mission


mode. Pilot projects needs to be set up initially to gain experience. DDG
proposals may be offered capital subsidies under the public private
partnership scheme for viability gap funding nation wide survey may be
undertaken to analyse resources for DDG.

5. One megawatt power plants in rural areas to be encouraged.

6. Centre for excellence in distribution to be set up.

7. Capacity building programmes of franchisees to be vigorously followed.

8. Special programme of energisation of pump sets in eastern region to be


implemented.

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9. Open access in distribution section to be encouraged.

10. Multi year tariffs and rationalization of tariff to be implemented.

11. IT applications to be given priority.

12. Prepaid meters, HVDC systems, consumer indexing, GIS based


database, reliability indexing, energy efficiency, demand side
management and energy accounting and auditing to be implemented.

4.0 DEMAND SIDE MANAGEMENT, ENERGY EFFICIENCY &


ENERGY CONSERVATION

4.1 THE ENERGY CONSERVATION ACT AND INTEGRATED ENERGY


POLICY

The 10thplan period (2002-07) marked the enactment of the Energy Conservation
Act, 2001 and setting up of the Bureau of Energy Efficiency (BEE) at the national
level. The Act has given the mandate to BEE to implement the provisions of the
Act, and spearhead the improvement in energy efficiency of the economy
through various regulatory and promotional measures.

The Planning Commission in its recent report on an Integrated Energy Policy


(IEP) laid out a vision of providing energy security to all citizens. IEP emphasizes
energy efficiency & demand side management as essential components of the
natural energy strategy. The Sub-Group report focuses on operationalizing and
implementing the recommendations of the integrated energy policy.

(Refer Para 4.2 of main Working Group Report)

4.2 ENERGY CONSERVATION STRATEGY IN THE 11TH FIVE-YEAR PLAN

The basic aim of the energy conservation strategy in the 11th Five Year Plan is to
create and strengthen institutions at the centre and in the states to carry out the
provisions of the EC Act 2001, in line with the recommendations of the Integrated
Energy Policy. The strategy will strengthen the existing institutional linkages,
pursue the task of consolidating energy conservation information, trends and
achievements, and create a market for energy conservation and for energy
efficient goods and services.

(Refer Para 4.3 of main Working Group Report)

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4.2.1 Strengthening of BEE and SDAs

In the 11th Five Year Plan, BEE will be strengthened as a nodal organization at
the national level, and will be empowered to provide direction to the energy
conservation programmes in the States. An ‘Energy Conservation Information
Centre’ (ECIC) will be set up within BEE to collate energy use data, and analyze
energy consumption trends and monitor energy conservation achievements in
the country. Supporting organizational set-up will also be strengthened in the
state designated agencies (SDAs) in various States and Union Territories (UTs).
For this, a matching grant support from Central Government restricted to the
contribution made by the respective States/UTs Governments will be extended to
establish State Energy Conservation Fund as mandated under EC Act.

(Refer Para 4.3.2 of main Working Group Report)

4.2.2. Energy Conservation Programmes in the Targeted Sectors

In the 11th Five Year Plan, BEE will focus energy conservation programmes in
the following targeted sectors:

Targeted sectors

(i) Industrial Sector (Energy Intensive Industries).


BEE will develop 15 industry specific energy efficiency manuals/guides for the
following sectors: Aluminium, Fertilizers, Iron &Steel, Cement, Pulp & Paper,
Chlor Alkali, sugar, textile, chemicals, Railways, Port trust, Transport Sector
(industries and services), Petrochemical &Petroleum Refineries, Thermal Power
Stations & Hydel power stations , electricity transmission companies &
distribution companies. The manuals will cover Specific energy consumption
norms as required to be established under the EC Act, energy efficient processes
and technologies, best practices, case studies etc. Follow up activities will be
undertaken in the States by SDAs and manuals will be disseminated to all the
concerned units in the industries.

(Refer Para 4.3.5 of main Working Group Report)

(ii) Small and Medium Enterprises (SMEs)

SDAs in consultation with BEE will initiate diagnostic studies in 25 number of


SMEs clusters in the country, including 4-5 priority clusters in North East Region,
and develop cluster specific energy efficiency manuals/booklets, and other
documents to enhance energy conservation in SMEs.

(Refer Para 4.3.5 of main Working Group Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

(iii) Commercial Buildings and Establishments

BEE will prepare building specific energy efficiency manuals covering Specific
energy consumption norms, energy efficient technologies, best practices etc. As
a follow up, SDAs would initiate energy audits and their implementation in 10
Government buildings in each state and 1-2 buildings at UT level. BEE will also
assist SDAs in the establishment and promulgation of energy conservation
building codes (ECBC) in the States, and facilitate SDAs to adapt ECBC.

(Refer Para 4.3.5 of main Working Group Report)

(iv) Residential/Domestic sector

BEE will enhance its on-going energy labeling programme to include 10 other -
appliances - Air conditioners , Ceiling Fans , Agricultural pump-sets , Electric
motors ( general purpose) , CFLs, FTL – 61cm, Television sets , Microwave
ovens, Set top boxes , DVD players and Desk top monitors. To facilitate this
consumer awareness will also be enhanced nation wide.

(Refer Para 4.3.5 of main report)

(v) Street Lighting & Municipal Water Pumping

To promote energy efficiency in municipal areas in various states, SDAs in


association with State utilities will initiate pilot energy conservation projects in
selected municipal water pumping systems and street lighting to provide basis for
designing state level programmes.

(Refer Para 4.3.5 of main Working Group Report)

(vi) Agriculture Sector

In the 11th Plan, SDAs will collect document and disseminate information on
successful projects implemented in some states, launch awareness campaigns in
all regional languages in print and electronic media, and initiate development of
state level programmes along with utilities.

(Refer Para 4.3.5 of main Working Group Report)

(vii) Transport Sector


SDAs with assistance of concerned institutions/agencies will conduct diagnostic
studies to establish the status of energy consumption and conservation in the
sector. BEE will also set up labeling and/or norms for specific fuel consumption
for a few automobile and Transport categories (Services/ Public transport).

(Refer Para 4.3.5 of main Working Group Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

4.2.3 Demand Side Management Programmes

BEE in association with SDAs will facilitate State Utilities to pursue DSM options
by focusing on orientation workshops for awareness building, setting up of DSM
cells in utilities to conceive and implement DSM programs, support load
research and studies to rationalize the tariff structures, and initiation of DSM
programmes, especially in the residential, agricultural pumping and municipal
water works & street lighting sectors

(Refer Para 4.3.6 of main Working Group Report)

4.2.4 Human Resource Development Programmes

There is a vast potential for energy savings through human intervention. BEE
and SDAs have a major responsibility for stimulating a major change in the
energy efficiency ethos and practices (energy modesty) by directing the national
energy conservation campaign as a mass movement and seeking wide support.
In the 11th Plan, BEE will continue with their campaigns. The initiatives like
capacity building of energy professionals, establishment of Demonstration
centers in 2 industrial estates, and Nationwide campaigns through media and
other modes will be undertaken.

(Refer Para 4.3.7 of main Working Group Report)

4.3. POLICY RESEARCH FOR ACCELERATING ADOPTION OF ENERGY


EFFICIENCY AND DSM PROGRAMS

Policy research on legislative amendments, policy interventions including fiscal


and non- fiscal measures are planned to be undertaken in 11th Plan.

(Refer Para 4.4 of main Working Group Report)

4.4 RECOMMENDATIONS

The target of additional electricity savings which may accrue to the national
economy at the end of 11th Five year plan as a consequence of intensive energy
conservation and DSM drive is expected to be about 5% of the anticipated
energy consumption level in the beginning of 11th Plan. BEE will device a suitable
mechanism for assessing these savings. The outlay for various strategies and
programs as proposed is Rs. 652 Crores. Out of this proposed allocation, Rs
350.5 crs is the estimated requirement for BEE at the centre and the balance Rs.
301.6 crs as the assistance for strengthening the institutional structure at the
State level for effective implementation of EC Act. These initiatives will also seek
funding support from state governments, other complementary programs, user
industry, financial institutions, and other donor agencies besides innovative
financing options.

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Executive Summary Working Group on Power-11 Plan (2007-12)

5.0 TECHNOLOGY ADVANCEMENT AND R&D


There is a need to introduce advanced technology in generation, transmission
and distribution and encourage Research & Development to meet the ambitious
plan of power sector growth during the 11th Plan.

A review of utilization of R&D fund during the 10th Plan period by major players in
the power sector shows that it was less than RS.150 crores against a provision of
Rs.500 crores. This is considered unsatisfactory and needs to be substantially
improved in the 11th plan.

Considering International technology trend and India’s power sector requirement


following broad areas were identified for selecting R&D projects during the 11th
Plan.

a) Introduction of larger size energy efficient thermal generation for Indian


coal with a good mix of fossil and renewable source of energy.

b) Efficient operation of a large grid with 800 kV AC &DC transmission with


high reliability, flexibility and open access in transmission

c) Technology development and demonstration of distributed generation


covering bio mass, bio diesel, solar, wind and focus on microgrids.

d) Reduction of distribution system losses, energy conservation methods and


introduction of large scale automation in distribution sector.

e) Clean technology development

5.1 OVERVIEW OF R&D IN THE PAST

In the generation sector commendable work has been done by NTPC and BHEL
in the areas of stabilization of 210 and 500 MW units, development of pulverized
coal fired boiler for coal with high ash content, efficiency improvement of Thermal
Power Plants, control, instrumentation and loss minimization. Similarly in the
hydro generation, BHEL, NHPC and other hydro utilities have contributed in
uprating of old units, improving turbine design etc. In transmission, Powergrid
and BHEL have introduced many new technologies like Series Compensation,
Thyristor Controlled Series Capacitor, Controlled Shunt Reactor, etc. Powergrid
have contributed to the development of high temperature conductors,
development of insulators, introduction of 800kV AC and planning for ± 800 kV
DC first time in the country.

Many of the development by Powergrid and NTPC have come through project
route in the county and although their R&D units have not shown substantial
expenditure on R&D, the organizations have encouraged new technology.

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Executive Summary Working Group on Power-11 Plan (2007-12)

It is felt that where as some of the available technology abroad are being
introduced in the country, commensurate R&D efforts to get it improved and
sustained through available inhouse resources, has not been pursued. Further,
an institutional mechanism to conduct and monitor National Level R&D Projects
has not been in place to make the indigenous R&D encouraged and its impact
assessed. As a result, there is no technology breakthrough that has actually
taken place in power sector through indigenous route.

5.2 TECHNOLOGY DEVELOPMENT IN POWER SECTOR

Major utilities like NTPC, NHPC and PGCIL have their inhouse R&D setup which
addresses introduction and absorption of new technology primarily through
project routes. Major manufacturers like BHEL, Crompton Greaves have their
own R&D set up, focusing on product development. Central Power Research
Institute (CPRI) is provided with capital funds from the Ministry of Power for
inhouse research as well as disbursement of research funds to utilities, industries
and academic institution. Central Electricity Authority has a role in identification of
appropriate new technology for the country. Recently a few projects under
National Perspective Plan on R&D have been taken up by CPRI which are
collaborative research projects involving more than one organisation. The R&D
policy of the Government recommends R&D projects that help the nation to
become self reliant in technology.

5.3 IDENTIFIED PROJECTS FOR 11TH PLAN BY CENTRAL UTILITIES

NTPC has identified a few good projects for inhouse research where they would
involve other research institutes like BARC, CPRI, CSIR and other consulting
houses. The list of projects identified by NTPC is as follows:

1. Flue gas heat recovery system for a 200 MW Unit.


2. IGCC technology demonstration project.
3. Automated boiler tube inspection system (robotics application).
4. On line condition monitoring of power transformers.
5. Modeling & design of natural draft cooling tower assisted flue gas
dispersion.
6. Technology demonstration for suitable capacity solar (Thermal).
7. 10 KW sterling engine based TDP suitable for distributed generation.

Powergrid has similarly identified a number of inhouse projects a list of which is


as follows:

1. Technology Development for +/- 800 kV HVDC system for transfer of


6000 MW power from NER to NR
2. Aerial route survey using Air borne laser terrain (ALTM) along with
National Remote Sensing Agency (NRSAR)

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Executive Summary Working Group on Power-11 Plan (2007-12)

3. Development of High surge impedance loading line (HSIL) – 400 kV


Purnea – Biharshariff D/C
4. Fault current limiter at 400 kV level
5. Indigenization of polymer insulator
6. Specification of suitable oil for transformer
7. Indigenized development of MOV
R&D in infrastructure development
8. Intelligent grid
9. Converter transformer design
10. Converter transformer less HVDC system
11. 1000 / 1200 kV EHVAC development
12. Residual life assessment of transmission system
13. Indigenous development of GIS
14. Real time digital simulator and studies
15. Indigenous development of high strength insulators like 320 / 420 kN
AC & HVDC
16. 400 kV compact line
17. Lightning mapping

BHEL has identified a few broad based projects in generation, transmission and
distribution which are given as under:

1. Clean coal technologies.


2. Super critical boilers.
3. Ultra High Voltage Equipment.
4. IGBT based drives and controls.

The laboratories of CSIR who also carry out basic and applied research have
following inhouse research programmes identified for the 11th plan:

1. R&D on Photovoltaics and other solar energy applications (NPL, New


Delhi)
2. Energy for cleaner and greener environment (CECRI, Karaikudi).
3. Bio energy technology: Strategy designing of Jatropha curcas for bio
diesel (NBRI).
4. Development of gas to liquid (GTL) processes for DNE & Fischer –
Tropsch fuels (NCL).
5. Hydrogen economy initiative (NCL, Pune).
6. Development of coal to liquid (CTL) technology for synthesis of liquid
from hydrocarbons (CFRI, Dhanabad).
7. Development of a composite approach suitable for clean coal initiatives
(CMRI, Dhanabad).
8. Development of Underground coal gasification and IGCC Technology
in India (CMRI, Dhanabad).

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Executive Summary Working Group on Power-11 Plan (2007-12)

CPRI has identified few areas of research and investment in infrastructure


building which are given below:

a) Development of new ceramic and polymer composites for power sector


application particularly for power capacitors.

b) Research on new material development for turbine blades for hydro


stations and new coating material along with other CSIR Laboratories and
NHPC.

c) Study of thermal mapping of power stations and heat rate improvements.

d) Diagnostic techniques and mulit criteria approach for RLA of EHV


substations.

e) Simulator studies for large AC/DC grids.

Other than the projects listed, a few projects of National interest which are
necessary to be taken up were identified for the following reasons:

a) They are collaborative research projects where more than one agency
have to be involved.

b) Some of them are demonstration projects involving best practices that


would help further research

c) Some of them are new application areas of available technology

A list of projects have been proposed for Generation, Transmission, Distribution


& Environment areas. Details of the same are furnished in Para 5.6 of Working
Group Report.

Estimated cost of R&D projects recommended for 11th plan by the Working group
have been discussed with the PSUs of MOP, BHEL and also shared with CSIR.
Details of the funds are as follows:

Total for Generation : Rs.333.50 crores


Total for Transmission : Rs. 70.00 crores
Total for Distribution : Rs. 25.00 crores
New Projects : Rs. 24.00 crores

(Project wise details of funds are furnished in Para 5.6 of the main Report)

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Executive Summary Working Group on Power-11 Plan (2007-12)

5.4 CPRI’S ROLE AND A NEED FOR RESTRUCTURING

CPRI was established to work as a nodal agency for power sector research but
had a larger role assigned to work as a neutral testing laboratory. Although the
organisation has contributed to encourage R&D in utilities, academic institutions
and in its own laboratories, it has not been able to build up resources to work as
a driver of R&D in the power sector.

It is recommended that a restructuring of CPRI is necessary if it has to play a


proactive role in collaborative research in the country. For this the following are
suggested:

a) Testing and Research have to be separate functions within CPRI.

b) Testing has to sustain on its own and as far as possible government grant
should not be utilized for meeting test facility requirements. The
beneficiaries of test facility, i.e., the manufacturing units and utilities
should largely bear this burden.

c) CPRI should be corporatised to reduce its dependence on Government


funding and have better operational flexibility. This would help CPRI to be
competitive and self reliant. The major utilities like NTPC, PGCIL, NHPC
and PFC should come forward to make it happen.

d) CPRI is to develop its ability to enhance industrial & system related


consultancy work and get more sponsored projects for improving its
financial health.

5.4.1 Assessment of CPRI’s requirements of fund

CPRI gets planned funds for expenditure of capital nature on replacement of old
test facility, addition of new test facility and for research under three heads, viz.
(a) for its own internal research projects, (b) for research projects on Power
(RSOP) to encourage research at utility centers and (c) National Perspective
Plan projects. The 10th Plan utilization of fund by CPRI is Rs.67.0 crores.

For the 11th plan period, CPRI has asked for a major investment under the
following heads

For Test facility - Rs.638.00 crores


For research projects & facilities - Rs.123.0 crores

(Details are furnished in Para 5.4 of the main Working Group Report.)

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Executive Summary Working Group on Power-11 Plan (2007-12)

5.5 FUNDING OF R&D

R&D expenditure of a few world class utilities and industries are given below:

Company 2003 2004 2005


% of
% of R&D % of R&D
R & D Exp Net sales R&D R & D Exp Net sales R & D Exp Net sales
Exp Exp
Exp
GE
2.7 149.7 1.80 3.091 154.481 2.00 3.425 122.886 2.79
(billion Dollar)
Siemens
4.73 69.77 6.78 4.65 70.23 6.62 5.155 75.455 6.83
(Billion Euro)

2003-04 2004-05 2005-2006


Company
% of R&D % of R&D % of R&D
R & D Exp Net sales R & D Exp Net sales R & D Exp Net sales
Exp Exp Exp
Alstom
473 16688 2.834 405 12920 3.13 365 13413 2.72
(million Euro)
Hitachi
371.8 8632.4 4.307 388.6 9027 4.305 405 9464.8 4.279
( billion Yen)
Mitsubishi Electric
136518 3309651 4.125 130548 3410685 3.828 130629 3604185 3.624
(million Yen)
BHEL
1041 103364 1.007 1252 103364 1.211 1517 145255 1.044
(million Rupee)

It may be observed that most of the organizations spend between 1.8 to 6% on


R&D depending on the nature of their business.

Technology advancements and research & development have so far not been
properly addressed. Major organizations like NTPC, NHPC, POWERGRID, on
the generation side and BHEL, ABB, SIEMENS on the manufacturing side must
enhance substantially their budget allocations for research and development.
The utilities should aim at least about 1% of their profit to be utilized for research
and development activities and the manufacturing organizations should consider
3-4% to be provided for technology development.

Networking of R&D resources and expertise would be an important strategy


aimed at getting effective results. CPRI, apart from testing, must reorient its
strategy and activities towards research.

5.6 RECOMMENDATIONS AND POLICY ISSUES.

1. Technology advancements and research & development have so far not


been properly addressed. Major organizations like NTPC, NHPC,
POWERGRID, on the generation side and BHEL , ABB, SIEMENS on the
manufacturing side must enhance substantially their budget allocations for

40
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Executive Summary Working Group on Power-11 Plan (2007-12)

research and development. The utilities should aim at least about 1% of


their profit to be utilized for research and development activities and the
manufacturing organizations should consider 3-4% to be provided for
technology development.
2. Networking of R&D resources and expertise would be an important
strategy aimed at getting effective results. CPRI, apart from testing, must
reorient its strategy and activities towards research.

3. Ultra Super Critical boiler technology, IGCC technology and oxy-fuel


technology are well researched abroad but have to be developed for
Indian coal. NTPC, the major Indian Central Sector utility should have its
R&D centre strengthened to expedite the work started during 10th plan on
IGCC. It is recommended that this project may be given top priority and
completed with the help of BHEL or with a private party if necessary.

4. There is a need to work with specialized S&T laboratories under CSIR &
other space and nuclear establishments to develop material technology for
advanced boilers, fuel cells, solar power, battery & super conducting
material application in power sector.

5. For the projects of National interest to be taken upon collaborative


research route the estimated R&D expenditure of 452 crores is
recommended. It is also recommended that in future capital fund support
for R&D should be reduced and utilities and industries should collaborate
to fund R&D projects.

6. An institutional change in handling R&D is required. A suggestion is to


have generation, transmission & distribution R&D units to be established
as separate entities in the central sector undertakings or to set up a
corporate technology centre for R&D activities in various areas of power
sector

7. R&D import should be exempted from custom duty to encourage


indigenous R&D

8. Power sector should seriously consider attracting young talents by offering


them challenging opportunities. This will be possible by encouraging R&D
and offering a good package, like many MNCs are offering at present.

9. A High Power Committee in R&D should monitor R&D projects and


regulate funds. This will avoid duplication & ensure competitive R&D.

10. Organisations like CPRI and NPTI should be spared from manpower
optimization rules where vacant positions are surrendered. This is in view
of the depleting cadre of scientists and specialists in these organizations.

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Executive Summary Working Group on Power-11 Plan (2007-12)

6.0 NORTH-EASTERN DEVELOPMENT

The details of Development of Power Sector in North-Eastern Region


have been covered in the respective areas.

7.0 HUMAN RESOURCE DEVELOPMENT AND CAPACITY


BUIDING’

7.1 MANPOWER

The manpower at the end of the 10th Plan will be of the order of 9.50 lakhs, out of
which the technical manpower is 7.16 lakhs and non-technical 2.34 lakhs.

The total manpower by the end of 11th Plan shall be of the order of 11.76 lakhs,
out of which 8.89 lakhs will be technical and 2.86 lakhs, non-technical.

The total manpower by the end of 12th Plan shall be 13.22 lakhs, out of which
10.04 lakhs will be technical and 3.18 lakhs will be non-technical.

(Ref Tables 1 to 22- of Chapter 7 of the main Working Group Report)

7.2 TRAINING LOAD

Overall training load expected during the 11th Plan is 4.65 lakh man-months per
year against the available training infrastructure of only 0.77 lakh man-months
per year.

For the 12th Plan, the expected training load is 4.78 lakh man-months per year.

(Ref Para 7.3.2 of the main Working Group Report)

7.3 MAN-MW RATIO

The Man-MW ratio is expected to gradually decline from 9.42 per MW in the 9th
Plan to about 7 in the 10th Plan and subsequently to 5.82 and 4.93 in the 11th and
12th plans respectively.

(Ref Table 23 of Chapter 7 of the main Working Group Report)

7.4 MAJOR OBSERVATIONS / RECOMMENDATIONS

7.4.1 Training for All

Every employee should be provided refresher training of minimum one-week per


year as mandated in the National Training Policy. Provisions for Refresher
training for O & M personnel has been made in the Indian Electricity Rules.

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Executive Summary Working Group on Power-11 Plan (2007-12)

However provisions for Refresher training for all power sector personnel as per
their requirements may be included.

7.4.2 Induction Level Training

Induction level training should be made compulsory for personnel getting


inducted in all areas viz., Thermal, Hydro, Transmission and Distribution etc.
Statutory provisions for Induction level Distribution Training in the Indian
Electricity Rules is under active consideration and would be notified shortly.
Simulator training should also be necessarily included as one of the modules for
the O & M personnel.

The Induction level training for Thermal, Hydro and Transmission is presently a
Statutory obligation as per the I.E. Rules. This may be made mandatory and in
particular enforced for the personnel working in the State Utilities and Boards.

Formal Induction level training should also be imparted to all non-technical


personnel in power sector. The duration could be three (3) months for executives
and one (1) month for non-executives.

7.4.3 Reporting Training activities to CEA

As many as 51 Training Institutes are recognized by CEA and it is recommended


that all training activities including expenditure incurred on training and personnel
trained should be reported to CEA. Every Utility/Organisation should display the
manpower and the training infrastructure available category-wise on their web-
site.

7.4.4 Strengthening of Existing Training Institutes

Capacity of existing Institutes to be strengthened. Provisions should be made in


the plan budgets for augmenting Training Centres from time to time. Upgradation
of the Training Institute’s Lab facilities may also be reviewed on a regular basis
and funds should be accordingly allocated.

7.4.5 New Training Institutes

All Power Utilities should set up Training facilities encompassing training


infrastructure for Induction level, Linemen and for Distribution Franchisees where
the Govt. of India could provide part funding.

A National Level Training Institute for Transmission with necessary infrastructure


with Central support at HLTC, Bangalore and Power Grid may be created.

A National level training centre for Distribution should be created with Central
Support at PSTI, Bangalore and CIRE, Hyderabad.

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Executive Summary Working Group on Power-11 Plan (2007-12)

Emphasis should be given to Linemen Training. It should be ensured that the


Linemen recruited should be at least 8th class pass with an ITI qualification.

New Linemen Training Centres should be established within the proposed


institutes in the Utilities in line with the recommended requirements of Distribution
training.

Need for training on Hotline LT Distribution lines may also be actively considered
for interruption free maintenance to the consumers.

7.4.6 Capacity Building in Training for Franchisees (RGGVY)

A national program for training and capacity building to be initiated targeting at


enhancing the skill of franchisees and trainers so as to enable them to play the
desired role in improving rural electricity access.

Every major state should have one (1) Training institute for Franchisee training.
Commercial and Legal issues should also be necessarily included in these
training programs.

Training Centres should also be set up in the districts, which are covered under
Rajiv Gandhi Grameen Vidyutikaran Yojna along with Linemen Training Centres

Capacity Building in Training for Franchisees may also be taken up by the


Institutes conducting DRUM training.

7.4.7 Networking

The Sub Group also stressed on Networking and tie-ups with the
Training/Academic institutions like NPTI, IIMs, ASCI, PMI etc., and other reputed
institutions for providing training to power sector personnel and other
stakeholders.

7.4.8 Training for Contract Labour

Adequate training should be made a pre-requisite for the contractor’s labour to


qualify for supply of Labour in power plants. Contract documents should
accordingly be modified.

7.4.9 Training on Attitudinal Changes/ Behavioral Sciences

Apart from the stress put on acquisition of knowledge and upgradation of skill
emphasis should be given on attitudinal changes/behavioural sciences, in order
to develop a sense of belongingness amongst the employees.

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Executive Summary Working Group on Power-11 Plan (2007-12)

7.4.10 Areas of Concern

Inspite of lack of availability of required infrastructure, the available infrastructure


of various Training Institutes remain under utilized

Statutory Induction Level Training is not being taken seriously by the Power
Utilities

Inadequacy of Trainers and insufficient Career Development Opportunities

ITIs and other vocational training institutions have to be substantially expanded in


terms of the number of persons they train and in the number of different skills
and trades they teach. The quality and range of their training will have to keep
pace with the changing needs of the economy and opportunities.

7.4.11 Recurring Investment on Training

As recommended in the National Training Policy, Organizations should allocate


some portion of their salary budget towards training and development.

All the Organizations, which are provided with Grants either from Central or State
Sector, should separately allocate Funds in particular for Training, which should
not be spent for other purposes.

7.5 FUNDING

The Total Plan period outlay is about Rs. 462 Crores. This does not include the
plan fund outlay proposed by other Sub-Groups, which includes setting up of new
training institutes, infrastructure upgradation, provision of incentives for
sponsoring organizations, Technology upgradation, procurement of Simulators
and GIS based training packages etc.

(Ref. Para 7.4 of the main Working Group Report)

8.0 LEGISLATIVE AND POLICY ISSUES – FORMULATION,


IMPLEMENTATION & FEEDBACK

1. Situation is not ripe for procurement through Case-I route since both coal
and gas are not yet freely available in the market. All efforts should be
made to develop new capacity under Case-II procurement.

2. SPV is necessary to develop new generation capacities quickly.

3. There is need to streamline and standardize the procedure to shorten time


cycle for obtaining environmental/forest clearance with greater emphasis
on compliance with laid down standards and conditions.

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Executive Summary Working Group on Power-11 Plan (2007-12)

4. Exploration capacity of CMPDIL may be augmented and also it may be


given more autonomy so that it can discharge its responsibility in fair and
neutral manner. Number of agencies having authorization to undertake
exploration of coal blocks should be increased.

5. Coal blocks to be used for captive coal mining by power projects should
be explored fully at the earliest and GRs should be readily made available
to power project developers on actual cost basis.

6. Appropriate cut-off of gross station heat rate, say 3000 kilo calorie per
unit, can be considered for identifying inefficient old power plants of more
than 25 years age and the sites could be released for setting-up plants of
more efficient and large sized units depending on the scope of expansion
available and with due cost benefit analysis. Coal linkages of the old
power plants should be transferred to new generating units.

7. Till the long-term coal supply contracts emerge in international coal


markets, the option of competitive bids for net heat rate may be explored
for imported coal based stations.

8. In the interests of larger competition aimed at consumer benefits,


procurement from non-conventional energy sources should not be
restricted to within the State but suppliers from outside State should also
be allowed to compete.

9. Procurement from non conventional sources should, unless there are


compelling reasons, be done through competitive bidding process as this
would add to transparency and lower procurement costs.

10. After assessing the stage of development of various non conventional


energy technologies, definite timeframe should be laid down for doing
away with preferential tariff for power generated from such sources.

11. Tariff Policy advises States to rationalize taxes and duties on captive
power consumption. This may be reviewed periodically with States and
made a condition for Central assistance to State power sector.

12. In competitive procurement of power, bidding by CPSUs should be


ensured in initial few projects to encourage competition.

13. CERC could set up benchmarks for capital expenditure to facilitate


accelerated R&M of old power plants.

14. To make available adequate power for open access consumers, there is
need for enabling policy framework for merchant power plants. Size of
MPPs could be up to 1000 MW which may be appropriate considering
greater possibility of financial closure without long-term PPAs for
comparatively smaller sized projects and also of making available

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Executive Summary Working Group on Power-11 Plan (2007-12)

transmission corridors for such MPPs. We could target MPP capacity of


about 10,000 to 12,000 MW by end of 11th Plan. Such merchant capacity
would be without the basis of long term PPAs.

15. Coal linkages should be freely available for power project developers who
come forward to set up such MPPs. In case captive coal blocks are given
to MPPs, there should be a mandatory condition that such the project
developer would not compete in competitive bidding for long-term PPA
based power procurement in order to avoid unequal competition since
only few developers would have such coal blocks. For allocation of linkage
or coal blocks for MPPs, an additional condition should be that captive
mining must begin within a period of 3 to 4 years failing which the
allocation should be cancelled.

16. For providing transmission corridors for such MPPs, adequate redundancy
should be built at the stage of transmission planning. Presently, also there
is a redundancy of about 20-25% in the transmission planning. There is
need to identify the major load centres who would draw power from such
MPP. These load centres would be most likely situated in northern and
western region where many States are deficit in power supply. Therefore,
the required redundancies could be planned from the likely location of the
MPP (which would be in eastern region) to such load centres. The cost of
providing such redundancy should be absorbed in the transmission tariff
by the concerned beneficiaries. This would be in the long-term interests of
consumers who will gain from efficiency arising out of competition among
the generators.

17. Tariff Policy envisages a National Transmission Tariff Framework


sensitive to distance and direction and related to quantum of power
offered. CERC is in the process of developing such a Framework which
needs to be done expedited. This would be a necessary pre-requisite for
promoting open access and power trading.

18. There is urgent need for regulations for providing grid connectivity to
MPPs. The National Electricity Policy already provides that prior
agreements would not be a pre-condition for network expansion and the
transmission utilities should undertake network expansion after identifying
the requirements in consonance with the National Electricity Plan and in
consultation with the stakeholder, and taking up the execution after due
regulatory approvals.

19. The reduction in cost of production of coal on account of higher efficiency


in captive coal mining should be passed on to the consumers through
reduced cost of bulk power. The coal blocks should be offered on the
basis of competitive bidding as part of the integrated coal mine-cum-
power project to achieve this objective. Any other method of allocating

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coal blocks for power projects is not likely to pass on the efficiencies of
captive coal mining to the consumers.

20. As long as there is shortage of natural gas and the two major users of gas
fertilizer and power work in a regulated cost plus environment, price of
domestic gas and its allocation should be independently regulated on cost
plus basis including reasonable returns.

21. Like crude oil and coal, natural gas and LNG may also be included in the
category of declared goods so that central sales tax of 4% is levied on
them and exemption from any state sales tax is extended.

22. Import duty on coal has been lowered to 5%. This position needs to be
continued as we would be depending on imported coal for generation.

23. Exemption of import duties available to generation projects under Mega


Policy should be available to all important transmission projects where
imported components form large part of the project cost.

24. Nuclear power stations are likely to be segregated from other strategic
nuclear installations in future. In that case, tariff determination from
nuclear power stations should be done through regulatory mechanism in a
transparent manner adopting two part tariff structure and efficient
operating norms.

25. There is a need to levy cess on the basis of consumptive use of water.
This would encourage closed cooling system which is the need of the hour
considering decreasing availability of water at project sites.

26. Service conditions of staff of the Regulatory Commissions and BEE


should be made attractive. Such staff should be eligible for housing
accommodation, medical facilities etc. on the lines of Government
employees.

27. State Governments should be asked to establish the Regulatory


Commission Funds at the earliest. This could be one of the follow up
points while releasing central assistance to the States.

28. There is a need to put in place a mechanism for periodical training/


reorientation for staff of the Commissions and for newly appointed
regulators. A corpus could be made available to the Forum of Regulators
(FOR) for this purpose income from which could be used for the training
programmes. The training programme and the training institutions should
be settled by FOR after taking into account guidelines issued by the
Central Government in this regard.

29. FOR has been entrusted with number of responsibilities in the Tariff Policy
with a view to ensure consistency in the regulatory approach. For

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discharging this role, the FOR would require consultancy for availing
relevant expertise including international experience on various matters.
Central Government should provide funds for this purpose.

30. FOR should also compile periodically various progressive orders of the
SERCs for sharing the best practices. The compilation may also include
important judgments of the Appellate Tribunal for Electricity.

31. To bring in appropriate accountability of the regulatory process, proposed


regulations of the Regulatory Commissions should be examined indepth at
draft stage itself. Further, there is a need for scrutinizing the regulations
for ensuring consistency with the letter and spirit of the law before they are
laid in the Parliament/ State Assembly. This is important since regulations,
once published in the gazette, become sub-ordinate legislation.

32. FOR should also undertake periodical review of implementation of the


National Electricity Policy and Tariff Policy since the law requires the
Commissions to be guided by these policies.

33. High loss making feeders may be franchised by distribution companies.


Towns having ATC losses higher than 35% may be franchised on input
energy basis immediately. Towns having losses between 25-30% should
be observed for improvement for 6 months and if there is no improvement,
these towns should also be franchised.

34. Through appropriate metering and energy audit, feeders incurring high
level of losses (may be more than 20% for urban feeders and more than
35% for rural feeders, this would depend on the stage in which distribution
reforms are in a particular state) should be identified. Performance of the
staff should be then assessed on the basis of Key Performance
Indicators(KPI) which would be primarily loss reduction. ATC loss
reduction of 3% every year in next five years should be targeted. The
Tariff Policy emphasizes on the need of putting in place local area based
incentive/disincentive scheme for the staff linked to distribution losses.
This should be immediately implemented by the SERCs.

35. The robust legal framework contained in the Act for control of theft is being
further strengthened. Annual conferences of power utilities should be
organized at national level for highlighting success stories and
achievement made in different States in controlling theft.

36. To enlist public support for rapid reduction of commercial losses, the list of
high losses feeders should be publicized periodically.

37. To realize the objective of Tariff Policy of supplying uninterruptible


electricity to those consumers who are ready to pay efficient cost, the
distribution tariff should move to distribution margin model which is also
provided in the Tariff Policy. Such distribution margin could be based on

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loss reduction trajectory in a MYT framework and the actual power


purchase costs should be paid by the consumers over and above the
distribution margin. Consumers of a particular area should be given option
to collectively choose either uninterruptible supply or otherwise and the
tariff could be determined accordingly.

38. Setting up of peaking power stations should be encouraged to overcome


peaking shortages as the additional power costs of supply from such a
station could be then passed on to the consumers who opt for
uninterruptible supply.

39. Use of electronic meters and spot billing should be expanded rapidly and
State should be emphasized upon to do so.

40. FOR should develop a model agreement for distribution of electricity by


distribution licensee through a franchisee in urban areas outlining the
responsibilities and duties of various parties clearly.

41. There have been some experimental efforts, with good success, for
outsourcing distribution of electricity for an identified feeder by the
licensee to a private entrepreneur selected competitively. This model
needs to be supported fully and replicated in high loss areas.

42. Necessary financial assistance may be provided to consumer groups


having proven track record for facilitating effective representation before
the Regulatory Commission. In addition, Central Government should also
arrange orientation programmes to educate these groups about various
provisions of the law and rules. Such scheme(s) should be administered
by the Department of Consumer Affairs.

43. The Rural Policy provides that standalone systems of upto one MW would
have automatic approval for

a. Land use change for area as per norms

b. Pollution clearance if technology is proven within laid down norms


and

c. Safety clearance on the basis of self certification.

These policy measures need to be implemented by the concerned


authorities at the earliest.

44. Schemes for separation of agricultural feeders in rural areas need to be


promoted. Agricultural consumers could be supplied electricity as per
seasonal demand for agricultural purpose and the tariff could be fixed
taking into view off-peak pricing and uninterruptible supply.

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Executive Summary Working Group on Power-11 Plan (2007-12)

45. Schemes for transferring subsidies directly to consumers may be


encouraged.

46. State Government should set up a dedicated planning cell for developing
electricity plan at the State level including specific projects which could be
posed for investment to the power sector. Such a plan could be on the
lines of National Electricity Plan.

47. With the objective of promoting more efficient use of electricity and also to
provide another payment option to the consumers, use of pre-paid meters
needs to be promoted.

48. In order to assess the progress made in achieving higher energy


efficiency, suitable mechanism should be put in place indicating the clear
cut methodology for computing various parameters in this regard.

49. Statutory rules may provide for periodical refresher training for all the O&M
personnel in different segments i.e. generation, transmission and
distribution. In addition, refresher training may also be provided to all other
personnel in power sector as per the requirement of their work areas.

50. A national programme needs to be launched for training and capacity


building for upgrading and enhancing the skills of franchisee who are
proposed to be deployed on a large scale for rural as well as urban areas.

9.0 ISSUES CONCERNING KEY INPUTS


9.1 FUEL

9.1.1 Coal Requirement / Availability for 11th Plan

Coal Demand – Supply Projection for Power Sector


(11th Plan Period)
(As Projected By CEA)

DESCRIPTION 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12


Installed Capacity 63490 72440 75870 81095 90675 101597.5
Additions 8950 3430 5225 9580 11450 16950
Retirements 0 0 0 0 527.5 259
Total Installed Capacity (MW) 72440 75870 81095 90675 101597.5 118816
Normative Coal Reqmnt 362.20 379.35 405.48 453.38 507.98 594.08
(Linkage) (MT) @

(Details are given in Table 9.7 of main Working Group Report)

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@ For calculation of linked coal requirement for the above installed capacity,
average 5 MTPA per 1000 MW of capacity, has been considered. This coal
requirement projection does not include coal requirement for captive power
plants (CPPs).

However, all the units envisaged for capacity addition, as shown above – year-
wise, may not be in full commercial operation for the whole periods of those
particular years, in which these units shall be commissioned. So, considering
that aspect, the following generation level – year-wise has been targeted by
CEA and corresponding coal requirement are worked out as under.

DESCRIPTION 2007-08 2008-09 2009-10 2010-11 2011-12


Total Generation (BU) (^) 499.5 536.0 587.9 660.8 764.5
Total Coal Requirement 354.9 380.4 417.6 470.0 544.5
(MT) including Transit Loss
@1%
Coal Availability
- From CIL (MT) # 287.27 311.55 343.80 376.74 405.79
- From SCCL (MT) $ 27.01 27.19 27.69 28.40 28.97
- From Captive Mines 9.75 23.60 36.47 41.50 47.30
Total Availability (MT) 324.03 362.34 407.96 446.64 482.06
Gap between Supply & -30.87 -18.06 -9.64 -23.36 -62.44
Demand (MT)

(^) Generation is projected (as projected by CEA), assuming PLF of 76% in 2006-07 & 2007-
08 and 77% in subsequent years existing units and 85% for new capacity additions, with
due consideration of initial commissioning period for new units.
# CIL’s projection of Coal Production including their emergency production plan, considered
here, is provided by Working Gr. member from CIL. Distribution of around 72% of CIL coal
to Power Sector (except CPPs) considered here based on historical supply figures and as
considered by CEA for their computation & analysis purpose.
$ SCCL’s projection of Coal Production, considered here, is provided by SCCL. Distribution
of around 71% of SCCL coal to Power Sector (except CPPs) considered here based on
historical supply figures and as considered by CEA for their computation & analysis
purpose.
(X) Coal Production from Captive Mines in the terminal year of 11th. Plan, as projected by CEA. However,
as per projections made in the Draft Report by the Working Group on Coal & Lignite, under the
Chairmanship of Secretary (Coal), out of 127 captive blocks allotted so far, about 60 have already
submitted mine plan to Coal Controller’s organization, indicating production projection of about 104
MT by 2011-12. Remaining block-holders are also expected to submit mine plan shortly. Out of 104
MT of coal production, as projected, around 65.95 MT will be available for Power Sector (Utilities) in
2011-12. However, achievement of this production level or even enhanced level from Captive Mining
are possible subject to expeditious approval of Mining Plan, various notifications for Land
Acquisitions, Environment Clearances & other clearances / approvals, as elaborated in this report,
later on.

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9.1.2 Capacity Addition in 11th Plan vis-à-vis Coal Tie-Up (As projected by
CEA)

Description Capacity Normative


(MW) Requirement
(MT)
Coal Linkage Available 32455 162.28
Block Allocated 5830 29.15
Imported Coal tied up 0 0
TOTAL AVAILABLE 38285 191.43
Linkage required to be accorded 4500 22.50
Block required to be Allocated $ 2500 12.50
Imported Coal to be tied up 1350 4.05
TOTAL TO BE TIED UP 8350 39.05
TOTAL COAL BASED CAPACITY ADDITION (MW) 46635 230.475
IN 11th PLAN

$ Projects totaling to 1750 MW have applied / applying for coal blocks, however, during 11th. Plan
it would require tapering coal linkages.

9.1.3 Gas scenario

At present 2114 MW Gas Based Power Project have been included in the 11th
Plan against the target of 50124 MW by thermal capacity. The additional power
could be planned / generated based on the following factors which would
however largely influence the ultimate gas demand in the power sector.

• Assured supply of gas and its time frame


• Price of gas and stability for 15 years
• Expanding the scope of regulator for regulating the price of gas.

9.2 TRANSPORT

9.2.1 Railways: Present Scenario

Important modes of transport of coal in India are Railways, Road, Merry-go-


Round Systems, Conveyor Belts and the Rail-cum-Sea Route. Railways
constitute the major system of coal transportation in India and coal is the largest
single commodity transported by the Railways. The dispatch of coal by rail is
governed by the Preferential Traffic Schedule of the Indian Railways, under
which the program of movement is to be sponsored by the various sponsoring
authorities and accepted by the coal companies. In case of deregulated coal,
Railways have allowed coal companies to sponsor the movement of coal.

Coal requirement of some consumers in Southern India, which include power


stations and cement plants, are met by moving coal by Rail-cum-Sea Route. This

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Executive Summary Working Group on Power-11 Plan (2007-12)

is done in view of the difficulties experienced in moving coal via all Rail Routes
from Bengal-Bihar and Main Line-Talcher Coalfields. The requirement of power
stations of Tamil Nadu Electricity Board (TNEB) is met by Rail-cum-Sea Route.
Haldia, Paradip and Vizag Ports handle the shipments.

¾ Some load center projects have been identified for expeditious


implementation to meet the increased power requirements for the
forthcoming Commonwealth Games-2010 to be held in Delhi. Such
projects of NTPC are Badarpur Expansion (1000 MW), Dadri (Coal)
Expansion (980 MW) and Jhajjar JV Project (1500 MW).

¾ At present 26 rake per day are being moved through over crowded
Railways section between Mughalsarai & Delhi which caters to existing
plants at Badarpur and Dadri (Coal). The number of rakes will increase to
34 rake / day when both of the expansion projects at Dadri and Badarpur
are commissioned. Railways need to gear up to tackle this increased
movement of coal in this section.

¾ In the case of proposed Jhajjar project to be implemented by NTPC in


Joint Venture with Delhi and Haryana, Problem exists in transportation of
coal beyond Mathura up to the plant i.e. the section from Mathura to
Jharli (station nearest to Jhajjar: Total distance is 240 Kms.) is single-
lined. Power project at Hissar in Haryana is also being implemented
during the same time frame which will also be using the same Railways
line. Considering the above and also considering the proposed
requirements of the power stations in the adjoining region this section
needs to be made double-lined.

9.3 PORT FACILITIES

9.3.1 Ports: Present Scenario

Ports form a critical part of transportation infrastructure of our country. India has
about 6000 km. of natural peninsular coastline. There are 12 major and 185
minor ports in India. Major ports handle about 75% of the country’s port traffic.

Present capacity for coal in Indian Ports account for about 65 Million Tonnes (as
on 31.03.2005) and it will be enhanced to about 142.87 Million Tonnes by 2013-
14, as projected by National Maritime Policy on Port & Shipping Sector.

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9.3.1.1 Present & Proposed Capacity Additions by Indian Ports


(Commodity-wise)

(In Million Tonnes)


Commodity Existing Capacity requirement Additional Capacity
Capacity as on by 2013-14 Estimated by 2013-14
31-3-2005

POL 157.35 248.56 91.21


Iron Ore 51.00 126.75 75.75
Coal (including 65.00 142.87 77.87
coking coal)
Container Tonnage 49.55 235.56 186.01

Container TEUs 4.13 19.63 15.50


General Cargo 77.10 163.85 86.75
TOTAL: 400.00 917.59 517.59

9.4 CONSTRUCTION AND MANUFACTURING CAPABILITIES

9.4.1 Manpower requirement for Hydro Projects (Supervisory Staff)

Category Estimated Available Augmentation


requirement required
Senior level Executives 550 330 220
Middle level Executives 2000 1200 800
Junior level Executives 4300 2600 1700
Non executives 1700 1000 700
Total 8550 5130 3420

9.4.1.1 Manpower requirement for Hydro Projects (Workers)

Sl No Type of Worker Estimated Available Augmentation


requirement required
01 Skilled 33000 20000 13000
02 Un skilled 50000 30000 20000
Total 83000 50000 33000

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9.4.2 Manpower requirement for Thermal Projects (Supervisory Staff)

Category Estimated Available Augmentation


requirement Required
Senior Level Executive 1014 660 354
Middle Level Executive 3702 2400 1302
Junior Level Executive 7308 5040 2268
Supervisors/ Non- 12780 8280 4500
executive
Total 24804 16380 8424

9.4.2.1 Manpower requirement for Thermal Projects (Workers)

Category Estimated Available Augmentation


requirement Required
Mechanics 1770 1200 570
Electricians 1062 720 342
Crane operators 3540 2400 1140
Drivers 8820 5760 3060
LP welders 7080 4800 2280
HP welders 1062 720 342
Aluminium welders 177 120 57
Fitters 10620 7200 3420
Riggers 9570 6020 3550
Insulation 354 240 114
applicators
Cable jointers 885 600 285
Carpenters 3312 2196 1116
Masons 7080 4800 2280
Bar benders 2478 1680 798
Total 55090 37736 17354

9.4.3 Requirement of construction equipment

9.4.3.1 Hydro Projects (Main Equipments)

Main Equipment required to be procured during 11th plan could be summarized


as below:

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Sl. Particulars of Estimated Available Augmentation


No equipment Requirement Required
1 Hydraulic Drill Jumbos (1 210 85 125
to 3 boom)
2 Hydraulic Excavators (0.2 520 210 310
to 5.2 cum)
3 Loaders 540 220 320
4 Dozers 420 165 255
5 Dumpers (12T to 35 T) 730 290 440
6 Road Rollers 55 20 35
7 Raise Borer/Climber 45 20 25
8 Concrete Batching plant 210 85 125
(30 to 360 cum/hr)
9 Aggregate Processing 110 40 70
Plant (50 to 600 TPH)
10 Tower Crane (6.5 to 10 120 45 75
T)
11 Shutter with travellers 470 190 280
12 Dry Shotcrete machines 440 180 260
13 Wet Shotcrete machines 130 50 80
14 Cranes (5 T to 60T) 405 160 245
15 EOT/ Gantry Cranes (10T 175 70 105
to 20T)

9.4.3.2 Thermal Projects (Main Equipments)

The major equipment required to be deployed for simultaneous construction of


24 projects of less than 500 MW and 21 projects of more than 500MW is
summarized below.

S.No. Particular of equipment Estimated Available Augmentation


Requirement required
1) 325 T Fm Crane Or Equivalent 47 12 30
2) Sumitomo crane or equivalent 150 t 177 120 57
3) Crawler mounted crane 100 t 90 72 18
4) Crawler mounted crane 75 t 444 312 132
5) Mobile crane - 20 mt / 8 mt 1206 732 474
6) Mobile crane – 40 mt 156 98 58
7) Heavy duty trailer 20-50 mt 1206 732 474
8) Dumpers 3540 3540 --
9) Dozers ( heavy duty d-6 & d-8) 132 68 64
(hydraulic)
10) Vibro compactors 444 312 132
11) Concrete pump 444 312 132
12) Truck mounted concrete pumps 177 100 77

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Executive Summary Working Group on Power-11 Plan (2007-12)

S.No. Particular of equipment Estimated Available Augmentation


Requirement required
with placing boom
13) Transit mixer (min. 5 cum. 884 528 356
Capacity)
14) Batching plant (more than 30 cum. / 288 166 122
hr. Capacity)
15) Rotaritory hydraulic piling rig 177 100 77
16) Compressors 177 100 77
17) DG sets 354 200 154
18) Boring equipment for trench less 45 31 14
construction
19) Welding machines 12060 12060 ---
20) Slip form equipment 45 31 14
21) Strand and jack arrangement for 21 1 20
boiler
22) ETDA cleaning arrangement for 21 1 20
boiler
23) Passenger cum goods lifts for boiler 156 98 58
24) Induction heating machines 156 98 58
25) Gantry Crane 156 98 58
26) Pock lain 444 312 132
27) Tipper 3120 1960 1160

9.5 REQUIREMENT OF KEY INPUT MATERIALS

Total requirement of various materials for Capacity Addition planned during 11th
& 12th Plans
Lakh Tonnes

Material 11th Plan 12th Plan


68,869 MW 82,200MW
Cement 306.3 470.0
Structural Steel 80.4 94.4
Reinforcement Steel 51.3 70.1
CRGO Steel 10.7 13.5
Castings 0.4 0.5
Forgings for TG sets 0.4 0.5
Special Steel for Sub-Stations 3.3 3.3
Steel for Conductors in Transmission 2.7 2.7
system Lines
Steel for Conductors in distribution system 4.5 5.7
Lines
Aluminium 16.0 18.6

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Material 11th Plan 12th Plan


68,869 MW 82,200MW
Copper 8.1 8.1
Zinc 1.45 1.51
Thermal Insulation 2.5 3.1
Static Meters with downloading facility 12.44Crores 4.96Crores
(Nos.)

9.6 RECOMMENDATIONS

9.6.1 Coal and Lignite

Domestic coal would continue to be the main stay for thermal power generation
in India. In order to make available the coal and lignite for power generation
following are recommended:

9.6.1.1 Coal Mining

1. Coal Sector may be given “Infrastructure Status” with ‘Tax Holiday’ & Duty
exemptions as at present the total duty incidence on mining
equipment/spares is about 50-55 % after including the countervailing and
other additional duties.
2. Alternatively, the concept of Mega Project may be introduced in the coal
sector also by according Mega Status to Coal Mines of production level of
5 MTPA or above and providing benefits of tax / duty concessions.

3. Deployment of state-of-the-art technology in the Indian mines for


enhancing the productivity and exploitable quantity of coal needs to be
encouraged by liberalization of import policy.
4. All coal blocks with firm Geological Report (GR) may be earmarked with
no reservation / blocking.
5. Mobilization of the investment in coal mining requires inducting and
encouraging more players from both public and private sectors.
6. Reputed International Coal Companies may be encouraged to come to
India which will facilitate introduction of latest mining technologies and
mine safety measures.
7. There is an urgent need to encourage more exploratory agencies and for
relaxation of mandatory supervision by CMPDIL alone.
8. The pace of regional surveys and drilling needs to be accelerated to
complete the comprehensive coal resource assessment exercise at the
earliest.
9. The list of agencies authorized to supervise may be expanded and the
Govt. agencies which are otherwise permitted to under take exploration
without seeking project specific exploration license could also be
authorized to supervise the exploration by other players. Further, new
Public Sector agencies including their joint venture such as JV of NTPC &

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SCCL may also be entrusted with the task of new exploration and
accorded exemption from obtaining exploration license.
10. Expeditious environmental clearance needs to be accorded by MOEF on
priority for 11th Plan coal mining projects.
11. Formulation of unified R&R policy and simplification of issuance of
notification and clearances shall help in expeditious development of coal
mining projects.
12. In case of more than one nearby coal mine projects, centralized/
combined forestation at a suitable location needs to be accepted.

9.6.1.2Lignite

1. At present only a small percentage of the total reserves of lignite have


been exploited. This needs to be enhanced to make use of this proven
source of energy. Allocation of Lignite blocks to interested developers
could facilitate faster growth of Lignite Production. If generation target is
enhanced to around 80% PLF, there will likely be shortfall in tune of 2
MTPA.

9.6.2 Railways

1. Railways need to expedite sectoral studies, development of suitable plans


and ensure adequate rail network for coal movement. Dedicated trunk-
routes for coal transport to the power project need to be developed.
Interim measures to be taken if dedicated freight corridor does not come
up in 11th Plan period.
2. Development of new rail links is required to be expedited along with the
Railways connectivity with Ports.
3. Timely establishment of rail links with allotted coal mining blocks.
4. Rail freight rates for coal transport may be rationalized.
5. The Railways, Coal and Power Ministry may work together to draw up a
well conceived model of Fuel Supply & Transport Agreement (FSTA).

9.6.3 Ports

1. Port capacity needs to be augmented to meet the increased infrastructure


requirement.
2. To expeditiously complete the existing projects like captive coal jetty at
New Mangalore Port, Coal Berth at Ennore port, Deepening Channel at
Paradeep port.
3. The major ports of the country may be developed as mega ports with
satellite ports dedicated to cargo like coal.
4. Port connectivity through seamless hinterland road and rail development
needs to be enhanced to meet the requirement of imported coal.

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9.6.4 Natural Gas

Natural gas is the fastest growing primary energy source amongst fossil fuel. Gas
supply to the existing gas based power stations has been inadequate and the
plants have been operating at around 58-60% PLF. The gas based stations
comparatively have shorter gestation period and are easier to operate. Following
are recommended in this regard:

1. The Government Quota of Gas from fields allotted / to be allotted under


NELP as per the respective Production Sharing Agreement should first be
utilized to meet the shortfall in supply from the linkage of existing
customers before allocation to others
2. There is need to ensure that assets like Gas Based Power Plants which
have been set up with substantial investment are not stranded / idle or
inadequately utilized on account of constraints of Gas / Infrastructure
availability and should get priority over new units . Therefore, while
granting Open Access for transportation of gas to sectoral players,
preference should be given to existing customers of gas.
3. Planning Commission, Govt. of India should facilitate the allocation of gas
to new gas based projects as well as in setting the reasonable pricing of
gas for power generation.

9.6.5 Key Input Materials

With a view to help industries to plan/ allocate build up their capacities over a
longer time frame, assessment of material requirement for 11th and for 12th Plan
period on a broad basis have been made and on prima facie considerations,
availability of various materials required for capacity addition planned for 11th &
12th Plan may not be a constraint unless requirements get bunched up in any
particular year. Following are recommended in this regard:

1. CRGO being the critical input for transformers and imported item, needs to
be exempt from Customs Duty to bring down the cost of transformers.
This is particularly important in view of the massive distribution system
augmentation planned in the 11th plan.
2. Simultaneously. Domestic producers may be encouraged for production of
CRGO as in the past non-availability of CRGO has led to delay in project
implementation.
3. Detailed analysis of the key materials availability for power sector needs to
be done by Planning Commission considering requirement of other
sectors of the economy.
4. The number of static meters required for 11th Plan is of the order of 12.44
crores. The manufacturers of static meters need to be geared up to meet
such huge requirements.

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9.6.6 Capability for manufacture of main plant equipment by indigenous


manufacturers, m/s BHEL for coal based power plants

1. M/s BHEL is the only major manufacturer of main power plant equipment
for thermal and hydro power projects in India. In the 10th Plan , the main
plant equipments for 65% of the thermal capacity addition, are being
supplied by BHEL. In the year 2003-04 BHEL received major orders
totalling to 5125 MW to be commissioned by 2006-07. Some of the units
out of this capacity are found to be slipping from 10th Plan target . This
matter was taken up with BHEL and a study was carried out by CEA for
the reasons leading to the delay. It has been found that it was mainly
due to inadequate manufacturing capacities of its various manufacturing
units , delay in finalization of orders for Balance of Plant (BoP) for EPC
contracts and shortage of construction /commissioning machinery, and
manpower. With the present capacity existing in BHEL manufacturing
plants, BHEL can deliver equipment only up to 3000 MW per year for coal
based projects . This was taken up with BHEL and they are proposing to
increase this capacity to 4675 MW by Dec. 2007 and further to 6475 MW
by the year 2010-11 for coal based power projects. Similarly the
manufacturing capacity for Hydro projects would also need augmentation
to cater to the increased requirements for 11th & 12th plan.

2. Based on the capacity additions planned for coal fired thermal power
projects, the following position emerges:

Sl Year of 2007-08 2008-09 2009-10 2010-11 2011-12 Grand


No. Commissioning/ Total
Details
i) BHEL’s Capabilities 3000 4675 4675 6475 6475 25300
(MW)
ii) (a) Orders received by 2170 2945 5730 6475 6475 23795
BHEL/ likely orders (likely)* (likely)
(MW)
(b) Orders by other 1260 2280 3850 4975 10475 22840
manufacturer (MW)
Total (MW) 3430 5225 9580 11450 16950 46635
* assuming that the full capacity of BHEL would be utilised

1. From the above it is evident that BHEL would be finding it difficult to


meet the commissioning targets for the year 2009-10. Further, for
the years 2010-11 and 2011-12, equipment for huge capacity has
to be supplied by other manufacturers to meet the capacity addition
targets.
2. Accordingly, it is informed that the country needs to develop
additional manufacturers of main plant equipment to meet the
projected capacity addition targets and also to induce competition

62
th
Executive Summary Working Group on Power-11 Plan (2007-12)

in the market for achieving a lower price/tariff. This has also been
emphasised by the Honble Minister of Power in the past, while
finalising the capacity addition programs. BHEL needs a substantial
expansion in the manufacturing capacity for thermal and Hydro
plants.

9.6.7 Construction Capability

Capability of construction agencies, availability of construction equipment,


appropriate construction technology and manpower are vital for implementation
of the capacity addition programme. Construction industry in India has grown
significantly and has acquired adequate experience in the field of construction
and infrastructure projects. Following are recommended in this regard:

1. Construction agencies are available in India (Domestic as well as


International) for taking up hydro as well as thermal power projects in 11th
Five Year Plan. Augmentation of manpower and construction equipment
would be required by the construction agencies to meet the targets.
2. Serious efforts need to be made by the major power companies to
develop vendors for supply and erection of equipment and for taking up
civil construction.
3. Power Projects should be granted infrastructure status for qualifying for
exemption of taxes and duties.
4. Government should consider taking up construction of approach road to
feasible project sites through a common fund to be recovered from the
developers subsequently.
5. Single window clearance should be encouraged with time frame for all the
statutory clearances required by the developers.
6. Immediate action need to be taken to create at least 10 Accredited
Training Institutions at different geographical locations for skill building in
specific areas like HP Welder, Aluminum Welders, Crane Operators,
Cable Jointer etc. vocational training wing of Ministry of Education,
NICMAR and CIDC could play the part of nodal agencies for such
institutions.
7. Cooperation of State Govt. must be ensured to facilitate smooth land
acquisition and implementation of R&R Plan.
8. New technologies like RCC Dam, jet grouting and use of Geotextile/
geosynthetics in place of filter materials should be adopted in Hydro
Projects.
9. Use of latest construction equipment like Tunnel Boring Machine (TBM),
Road Headers, Raise Borers, Forepoling machines, Jet grouting
Equipment, Hydro fraise equipment etc should be encouraged to achieve
fast progress.
10. Low bed wagons for transportation of transformers/generators/stator/boiler
drum need to be augmented at least by 14 Nos.

63
th
Executive Summary Working Group on Power-11 Plan (2007-12)

9.6.8 Integrated Energy Policy

Integrated Energy Policy – Report of the Expert Group under the Chairmanship
of Shri Kirit S. Parikh, Member, Planning Commission, Govt. of India has
addressed wide ranging issues and has suggested policy initiatives to provide
energy availability and security for sustainable economic development. A few of
the important issues delineated in the policy and impacting the power sector
needs to be implemented. Following are recommended in this regard:

1. Standardization of Main Plant equipment in bands of different unit sizes is


desirable particularly from the point of view of faster capacity addition;
however there is a need for an Empowered Committee for centralized
procurement and to bench mark the price for different unit sizes.
2. The rate of return on the investment in power sector has to be adequate to
attract investment and to compete with the opportunities of investment in
other sectors.
3. To ensure capacity addition through tariff based completive bidding there
is a need to create an enabling framework by both State and Central
governments in the areas of allocation of site, water & fuel linkage,
environmental clearance, R&R etc.
4. Coal price for supply of coal under long term agreement should not be
linked with e-auction coal price as it will only push up the coal price.
Further, linking of coal price with the imported coal price would also not be
appropriate. There is an urgent need of Regulator in Coal Sector.
5. The captive coal mining blocks should be fully explored with ready
Geological Report (GR), so as start the production from captive coal
blocks in a timely manner.
6. Opening up of coal sector to promote competition.
7. Allocation of coal mining blocks for generation sector based on least cost
generation.
8. Open access to the Gas network should be ensured to promote
competition in gas sourcing. Role of Regulator in Oil & Gas sector needs
to be expanded to include gas pricing.

64
th
Executive Summary Working Group on Power-11 Plan (2007-12)

10.0 FINANCIAL ISSUES AND POWER SECTOR FINANCING

10.1 During 11th Plan period, the overall generation capacity addition of 68,869
MW is envisaged. (Refer Para 10.2.3 of main Working Group Report)
(MW)
SECTOR HYDRO THERMAL NUCLEAR TOTAL

Projects Under Construction 11,931 16,254 3,160 31,345


Committed Projects 3,654 33,870 0 37,524
Total capacity 15,585 50,124 3,160 68,869

10.2 The overall requirement of funds in 11th Plan has been estimated as Rs.
1,031,600 crore with details as follows: (Refer Para 10.9 main Working Group
Report)
( Rs. Crore)
Particulars State Central Private Total
Generation including Nuclear 1,23,792 2,02,067 85,037 4,10,896
DDG 20,000 20,000
R&M 15,875 15,875
Transmission 65,000 75,000 1,40,000
Distribution including Rural electrification 2,87,000 2,87,000
HRD 462 462
R&D Outlay 1,214 1,214
DSM 653 653
Total Power Sector 4,91,667 2,99,396 85,037 8,76,100
NCES and Captive 22,500 93,000 1,15,500
Merchant Plants 40,000 40,000
Total Funds Requirement 5,14,167 2,99,396 2,18,037 10,31,600

Year wise Funding Requirement for 11th Plan

(Rs. Crore)
2007-08 2008-09 2009-10 2010-11 2011-12 Total
1,32,264 1,74,003 2,24,754 2,52,707 2,47,872 10,31,600

10.3 The details of major sources and estimated mobilization, funding


gap and possible sources of bridging the gap is given below in following
Tables (Refer Para 10.11 of main Working Group Report)

65
th
Executive Summary Working Group on Power-11 Plan (2007-12)

(Rs. Crore)
Description State Central Private Total
Funds required 5,14,167 2,99,396 2,18,037 10,31,600
A) Equity Required (D/E - 70:30) 1,54,250 89,819 65,411 3,09,480
B) Equity Available
1 -Promoters including FDI for IPPs 0 0 25,511 25,511

-Promoters including FDI for NCES & Captive 0 0 27,900 27,900


-Merchant Power Plant 12,000 12,000
2 Internal Resources 0 62,922 0 62,922
3 Govt. Support
3.1 State Govt. 0 0 0 0
3.2 Central Govt. 0 0 0 0
C) Total Equity Available 0 62,922 65,411 1,28,333
D) Additional Equity to be arranged (A-C) 1,54,250 26,897 0 1,81,147
E) Debt Required (D/E - 70:30) 3,59,917 2,09,577 1,52,626 7,22,120
F) Debt Available
1.1 Direct Market Borrowing 10,000 15,000 0 25,000
1.2 Banks and AIFIs 37,173 58,415 10,621 106,210
1.3 PFC 64,960 8,120 8,120 81,200
1.4 REC 47,320 5,915 5,915 59,150
1.5 IIFCL 0 6,000 9,000 15,000
2.1 Multilateral/Bilateral Credits 5,520 19,320 2,760 27,600
2.2 ECA/ECB/Syndicated Loan etc. 0 46,000 11,500 57,500
G) Total Debt Available 1,64,973 1,58,770 47,916 3,71,660
H) Additional Debt to be arranged (E-G) 1,94,943 50,807 1,04,710 3,50,460
I) Additional Equity & Debt required (D+H) 3,49,193 77,704 1,04,710 5,31,607
J) Total Availablity of Debt and Equity 1,64,973 2,21,692 1,13,327 4,99,993
K) Funding by Special Schemes
1 APDRP 40,000 0 0 40,000
2 RGGVY 40,000 0 0 40,000
L) Total shortfall to be arranged (I-K) 2,69,193 77,704 1,04,710 4,51,607

66
th
Executive Summary Working Group on Power-11 Plan (2007-12)

Summary of Funds Requirement and Mobilization for


Different Debt: Equity Scenario
( Rs. Crore)
Description D/E D/E
70:30 80:20
Funds required 10,31,600 10,31,600
Equity Required 3,09,480 2,06,320
Total Equity Available 1,28,333 1,28,333
Additional Equity to be arranged 1,81,147 77,987
Debt Required 7,22,120 8,25,280
Total Debt Available 3,71,660 3,71,660
Additional Debt to be arranged 3,50,460 4,53,620
Additional Equity & Debt required 5,31,607 5,31,607
Less: Funding by Special Schemes 80,000 80,000
Total shortfall to be arranged 4,51,607 4,51,607
Equity required after funding from special schemes 1,21,147 17,987
Debt required after funding from special Schemes 3,30,460 4,33,620

10.4 PROPOSED MEASURES FOR REDUCING FUNDING GAP

1. Modification of ECBs guidelines permitting infrastructure borrowers


including intermediaries PFC, REC, IDFC etc to borrow funds from
overseas market under automatic approval route and Debt Servicing to be
eligible for exemption under Section 10 (15) (iv) of Income Tax Act. (Refer
Para 10.16.1.1 of main Working Group Report)

2. Introduce Power Bonds or Vidyut Vikas Patra, as transferable bearer


instrument for wider retail participation (Refer Para 10.16.1.2 of main Working
Group Report)

3. Additional investment limit of Rs. 50,000 per year for infrastructure bonds
under Section 80C of the Income Tax Act, 1961 over and above existing
limit of Rs. 1,00,000 with a lock in period of at least 5 years. Expected
mobilization over 5 years is estimated at Rs. 1,50,000 crore. (Refer Para
10.16.1.3 of main Working Group Report)

4. Long term Capital Gains Bonds: Allow Section 54EC benefit under Income
Tax Act for bond issuances by PFC & IIFCL in line with REC & NHAI.
(Refer Para 10.16.1.4 of main Working Group Report)

5. Possible Sources of Bridging the Gap

67
th
Executive Summary Working Group on Power-11 Plan (2007-12)

(Rs. Crore)
S. No. Particulars Estimated Amount
Debt
1 Power Bonds 50,000
2 Tax incentive under Section 80 C 1,50,000
3 Bonds under Section 54EC 50,000
4 Insurance 20,000
Sub Total 2,70,000
Equity
5 IPO/FPO 15,000
Grand Total 2,85,000
Net Gap 1,66,607

6. Reinstatement of 10(23) G benefit (tax exemption on interest income from


infrastructure projects) to be reintroduced. (Refer Para 10.16.1.5 of main
Working Group Report)

7. 5% of PF, Gratuity, Pension and Insurance funds must be regulated for


investments in Power Bonds. (Refer Para 10.16.1.7 of main Working Group Report)

10.5 FISCAL AND OTHER MEASURES TO ENABLE CHEAPER POWER:


(REFER PARA 10.16.3)

1. Excise Duty/ CVD on power Generation, Transmission & Distribution


equipment (which is currently at 16%) should be abolished for Projects
with 1,000 MW dispatch on the lines of concession provided to the Mega
Power project.

2. Existing Income Tax exemption for Power Sector projects under section
80IA expiring in March 2010 to be extended till March 2017.

3. Additional depreciation of 20% (WDV) under IT Act available for


investments in plant and machinery in industries other than power to be
made available to power industry also.

10.6 MAJOR RECOMMENDATIONS & POLICY MEASURES

1. IPO by Power companies: Profit making Central/ State Utilities in


generation, transmission & distribution to be encouraged for supply of
PSUs stock in the market by way of IPOs/ FPOs (Follow-on Public Offer)/
Offer for sale. (Refer Para 10.15.1 of main Working Group Report)

2. Public Private Participation models: PPP on the lines of UMPP where


Govt. undertakes to get the various clearances before the bidding

68
th
Executive Summary Working Group on Power-11 Plan (2007-12)

facilitates quicker financial closure. (Refer Para 10.15.2 of main Working Group
Report)

3. Relaxation in Companies (Issue of Share Capital with Differential Voting


Rights) Rules, 2001, for issuing Equity Shares with Differential Voting
Rights: Waive requirement of having distributable profit for three financial
years. (Refer Para 10.15.3 of main Working Group Report)

4. Equity support by State Governments through Budget Allocation: State


Government should allocate funds through its budget for providing equity
support to State Utilities in Power Sector (Refer Para 10.15.4 of main Working
Group Report)

5. Specialized debt funds for infrastructure financing (Refer Para 10.15.5.2 of


main Working Group Report)

6. Development of a Venture Capital / PE fund to invest in equity of power


projects. (Refer Para 10.15.6 of main Working Group Report)

7. Development of Primary Markets for Bonds and Corporate Debt by


enhancing issuer base and investor base (Refer Para 10.15.7 of main Working
Group Report)

8. Development of Hydro Power Viability Fund which finances the deferred


component of the power tariff of the first five years and recovers its money
during 11th to 15th year of the operation. (Refer Para 10.15.8 of main Working
Group Report)

9. Viability Gap Fund (for Remote areas) which finances the deferred
component of the power tariff of the first five years and recovers its money
during 11th to 15th year of the operation. (Refer Para 10.15.9 of main Working
Group Report)

**********

69
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Chapter 1
DEMAND FOR POWER AND GENERATION PLANNING

1.0 TENTH PLAN REVIEW

The total installed capacity at the beginning of the 10th Plan i.e. 1.4.2002 was 1,05,046
MW comprising 26,269 MW hydro, 74,429 MW thermal (including gas and diesel), 2,720
MW nuclear and 1,628 MW wind-based power plants. The region-wise details of installed
capacity as on 1.4.2002 are given in Table 1.1

Table 1.1
Summary of Installed Capacity at the Beginning of 10th Plan (1.4.2002)
(Figures in MW)
Thermal Renewable
Sector Hydro Nuclear Energy Total
Coal Gas Diesel Total
Sources
State 22,639 36,722 2,662 558 39,941 0 61 62,642
Private 581 3,991 4,082 577 8,651 0 1,567 10,799
Central 3,049 21,418 4,419 0 25,837 2,720 0 31,605
ALL INDIA 26,269 62,131 11,163 1,135 74,429 2,720 1,628 1,05,046

At the beginning of 10th Plan the country was facing peak shortages of 12.6% and energy
shortage of 7.5%, with lowest of 3.7% in Eastern Region and highest at 16.9% in Western
Region in terms of peak and 1% to 10.4% in terms of Energy.

1.1 TARGET CAPACITY ADDITION DURING TENTH PLAN

Taking into account the preparedness of the projects and resources available, a feasible
capacity addition target of 41,110 MW comprising 14,393 MW hydro, 25,417 MW thermal
and 1,300 MW nuclear was fixed for the 10th Plan as detailed below.

Table 1.2
10th Plan Capacity Addition Target-Sector Wise
(Figures in MW)
SECTOR Hydro Thermal Nuclear Total
CENTRAL 8,742 12,790 1,300 22,832
STATE 4,481 6,676 0 11,157
PRIVATE 1,170 5,951 0 7,121
TOTAL 14,393 25,417 1,300 41,110

Page 1 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

10th PLAN CAPACITY ADDITION TARGET


(41,110 MW) - BY SECTORS

7,121 MW
PRIVATE
SCTOR
17%

STATE SECTOR
27%

11,157 MW 22,832 MW

CENTRAL
SECTOR
56%

Region wise/ Status wise Summary of this capacity addition target is furnished in
Appendix 1.1.

1.2 STRATEGY FOR ACHIEVING 10TH PLAN TARGET

The capacity addition achieved during the 9th Five Year Plan was below 20,000 MW and
the best performance during any plan in the past was 21,400 MW added during the 7th
plan period. The goal of capacity addition of 41,110 MW during 10th Plan was a great
challenge to the central, state and private sector generating companies. MOP and CEA
formulated a strategy for achieving the planned target of capacity addition during the 10th
Plan by carrying out rigorous monitoring of the progress of construction of the projects.
The efforts of CEA and MOP have yielded good results. Critical projects not making
satisfactory progress have been identified and focused efforts have been made to remove
constraints in their implementation. However, in spite of best efforts by project authorities,
CEA and MOP, a few projects in hydro and thermal are still likely to slip from the 10th Plan.

At the same time, action has also been taken to add new additional capacity which was
initially not included in the target for the 10th plan. This was done to supplement the effort
as some of the plants included in the target were likely to slip.

1.3 ACTUAL CAPACITY ADDITION AND POWER SUPPLY POSITION DURING 10TH
PLAN (TILL DATE)

1.3.1 Actual Capacity Addition

A capacity addition of 17,995 MW has been achieved during 10th Plan till 31-12-
06.Yearwise details of the target and actual capacity addition during 10th Plan up to
31.12.06 is given in Table 1.3

Page 2 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.3

Year wise Capacity Addition During 10th Plan up to 31.12.2006 ( All India)

(Figures in MW)
Actual
Year (MW) Type Target
Achievements
Hydro 607 649***
Thermal 3502 2,223
Coal 710 1210
2002-03 Lignite 795 460
Gas 1977 515
Oil 20 38
Nuclear 0 0
Total 4,109 2,872
Hydro 3,765 2,590
Thermal 1,437 1,362
Coal 735 945
2003-04 Lignite 420 210
Gas 259 207
Oil 23 0
Nuclear 0 50*
Total 5,202 4002
Hydro 2,585 1,015
Thermal 2,661 2,934
Coal 2000 2710
Lignite 460 125
2004-05
Gas 173 70
Oil 28 29
Nuclear 0 0
Total 5,246 3,949
Hydro 2886 1340
Thermal 3436 1589
Coal 1790 830
Lignite 250 125
2005-06
Gas 1396 634
Diesel 0 0
Nuclear 590 590**
Total 6912 3519
Hydro 3884 1316
2006-07
Thermal (Coal, Lig, 13123 1811
Up to 31st
December, 2006
Gas & Diesel)
Nuclear 760 540
Total 17767 3667
Grand Total 17995
(Up to 31st December 2006)
* and **Additional capacity 50 MW each due to uprating of MAPS-1 &2 (Nuclear)
***- Includes projects of 12 MW capacity not included in the target viz. Potteru
(6 MW) & Likimiro (8 MW).

Page 3 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

The Year-wise details of projects already commissioned during 10th Plan are given in
Appendix 1.2

1.3.2 Installed Capacity as on 31.12.2006

The total Installed Capacity as on 31.12.2006 was 1,27,753 MW comprising 33,642 MW


hydro, 84,020 MW thermal including gas & diesel, 3,900 MW nuclear based power plants
and 6,190 MW from renewable energy sources including wind. The sector– wise details of
installed capacity is given in Table 1.4

Table 1.4
Summary of Installed Capacity as on 31.12.2006

(Figures in MW)
Thermal
Sector Hydro Nucl. R.E.S.@ Total
Coal Lig Gas$ Oil© Total
CENTRAL 6,672 24,020 2,490 5,899 0 32,409 3,900 0 42,981
STATE 25,664 37,386 465 3,500 1,239 42,589 0 2,568 70,821
PRIVATE 1,306 2,831 500 4,183 1,507 9,022 0 3,523 13,951
TOTAL 33,642* 64,237** 3,455 13,582 2,746 84,020 3,900 6,191 1,27,753
Source: DMLF Division, CEA
@ R.E.S. = Renewable Energy Sources includes Small Hydro Project(SHP), Biomass Gas (BG),
Biomass Power (BP) Urban and Industrial waste power (U&I) & Wind Energy
* Includes ROR- 15,143 MW, PSS- 664 MW, Storage- 17,835 MW
** 21,759 MW Pithead & 42,478 MW Load Center/ Non Pit Head
$ Includes Liquid Fuel based Kayamkulam Project-350 MW
© 1544 MW Dual firing stations included in oil.

1.3.3 Power supply position in 10th plan

The year-wise actual power supply position during 2002-03, 2003-04, 2004-05 ,2005-06
and 2006-07(till Dec-06) of 10th plan is given in Table 1.5

Table 1.5
Actual Power Supply Position ( All India Basis )

Year Peak Energy


Require- Availabi- Surplus Shortage/ Requirem Availability Surplus Shortage
ment lity (+)/Short- Surplus ent (MU) (MU) (+)/Shortage /Surplus
(MW) (MW) age (-) % (-) %
(MW) (MU)
2002-03 81,492 71,547 - 9,945 -12.2 5,45,983 4,97,690 -48,093 -8.8
2003-04 84,574 75,066 -9,508 -11.2 5,59,264 5,19,398 -39,866 -7.1
2004-05 87,906 77,652 -10,254 -11.7 5,91,373 5,48,115 -43,258 -7.3
2005-06 93,255 81,792 -11,463 -12.3 6,31,757 5,78,819 -52,938 -8.4
April–Dec
1,00,466 86,425 -14,041 -14.0 5,10,223 4,65,149 -45,074 -8.8
2006

Page 4 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

1.4 ACTUAL/ LIKELY CAPACITY ADDITION DURING TENTH PLAN

A capacity of 17,995 MW has been commissioned till date(31.12.2006) during the 10th
Plan and a capacity of 12,646 MW is expected to be commissioned during the balance
period (Jan.07-March07) of 10th Plan. Year wise capacity addition is given in Table 1.6.

Table 1.6
Year wise Capacity Addition During 10th Plan (All India Basis)
(Figures in MW)
Type 2002-03* 2003-04* 2004-05* 2005-06* 2006-07@ Total
Hydro 635 2,590 1,015 1,340 3,274 8,854
Thermal 2,223 1,362 2,934 1,588 12,280 20,387
Nuclear 0 50 0 590 760 1,400
Total 2,858 4,002 3,949 3,518 16,314 30,641
*Actual, @ likely, (Excluding wind & Res.)

The target set for capacity addition during the 10th Plan was 41,110 MW. Even though
stringent monitoring of projects has been done, the likely capacity addition during 10th Plan
has been assessed to be about 30,641 MW out of which about 17,995MW has already
been commissioned as on 31-12-06. The details of projects included in original 10th plan
target and their present status are given in Appendix 1.3

As per latest indication, out of 30,641 MW a capacity of 5,727 MW may further slip to 11th
Plan because of various reasons including delay in supply and execution by BHEL. Any
slippage of the projects from 10th plan would be reckoned as additional capacity in 11th plan
over and above being proposed in this document. The details of 5,727 MW capacity
expected to slip to 11th Plan is given in Appendix 1.4.

During the first year of 10th plan itself it became clear that a number of projects totalling to
3,009 MW in public and private sectors could not be taken up due to various reasons which
included non availability of escrow cover by State Government to IPP projects and fund
constraints. Certain projects totalling to a capacity of 12,516 MW comprising 7,458 MW
thermal and 5,058 MW hydro as included in the 10th Plan target of 41,110 MW are slipping
to 11th Plan. Further 5,056 MW capacity additional projects comprising of 4,956 MW
thermal and 100 MW nuclear (uprating) originally not included in the 10th Plan target have
been additionally identified for benefits during 10th Plan by expediting the process of
project implementation and compression of the construction schedule to make up for the
projects which could not take off. This has been possible through extraordinary efforts
made by CEA & Ministry of Power in pursuing the developers and other Stake holders A
summary of the slippages and additional projects identified is given in Table 1.7.

Page 5 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.7
Summary of Likely Capacity Addition during 10th Plan
(Figures in MW)
Thermal Hydro Nuclear Total
Original programme 25,417 14,393 1,300 41,110
Dropped 2,528 481 0 (-)3,009
Capacity slipping to 11th plan 7,458 5,058 0 (-)1,25,16
Back up capacity likely to be 4,956 - 100 5,056
added
Total 20,387 8,854 1,400 30,641**

**This includes a capacity of 2578 MW which were the best efforts projects. This also
includes a further capacity of 2445 MW which would need extra ordinary efforts for
completion during 10th plan mainly due to constraints on the side of BHEL.

1.5 LIKELY INSTALLED CAPACITY AT THE END OF 10TH PLAN I.E. AS ON


31.03.2007

The likely Installed Capacity at the end of 10th Plan i.e. as on 31.03.2007 is 1,40,571 MW
comprising 35,600 MW hydro, 94,660 MW thermal including gas & diesel, 4,121 MW
nuclear based power plants and 6,191 MW from renewable energy sources including wind.
The sector– wise details of this is given in Table 1.8.

Table 1.8
Summary of Likely Installed Capacity as on 31.03.2007

(Figures in MW)
Sector Hydro Thermal Nucl. Wind/RES Total
Coal Lignite Gas Oil Total
CENTRAL 75,62 27,728 2,490 4,419 0.0 34,637 4,120 0.0 46,319
STATE 26,745 41,631 665 3,760 1,239 47,294 0 2,568 76,607
PRIVATE 1,293 3,081 500 7,641 1,507 12,730 0 3,623 17,645
TOTAL 35,600 72,440 3,655 15,820 2,746 94,660 4,120 6,191 1,40,571

1.5.1 Analysis of reasons for 10th plan slippages

The causes for slippages and delays in implementation of 10th plan power projects is
discussed below:

It has emerged that out of 41,110 MW capacity addition target during 10th plan over 12,500
MW was not feasible within 10th Plan because of inadequate preparedness. Some of the
major groups in this category are as follows:

(a) About 3960 MW (660 MW unit size ) projects of NTPC based on super critical
technology were not found feasible to be commissioned during 10th plan as originally,
NTPC was of the view that indigenous manufacturer BHEL would tie up collaboration
agreement and participate in tender for development of these projects, which BHEL
had not done even till middle of 2003.

Page 6 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

(b) 10th plan target included over 3,300 MW hydro projects in case of which
preparedness in terms of crucial inputs like Techno-economic clearance, PIB,
Environmental clearances, etc were not in place.

(c) In case of private sector projects , the reasons of slippages are due to escrow cover
not being given by State Government and financial closure not achieved by the
developers. Such projects add up to 900 MW.

(d) In case of thermal projects under execution during 10th Plan, the main reason of
slippage is delay in placement of main plant order by the utilities. The other reason of
delay is non-sequential supply of material by the manufacturers.

(e) Some of the Hydro projects slipped from original 10th Plan mainly due to delay in
award of works, delay in investment decisions, forest clearance. Some of the Hydro
projects in state sector are delayed due to funds constraints as well.

(f) Two gas based project of NTPC namely Kawas and Gandhar were also included as
additional projects but are not likely to take off on account of bleak gas availability
scenario.

Table 1.9 indicates the major reasons of slippage and the capacity slipped due to each of
these reasons:

Table-1.9

Sl. Major Reasons of slippage Capacity slipped (MW)


No Thermal Hydro
1. Delay in super critical technology tie up 3,960 -
by BHEL
2. Geological Surprises - 510
3. Natural Calamity - 450
4. Delay in award of works 998 823
5. Delay in MoE&F clearance - 400
6. Delay in clearance/ Investment decision / 1,500 1,400
Funds tie up constraints/delay in financial
closure
7. Delay in Preparation of DPR & sign up of - 400
MOU between HP&SJVNL
8. ESCROW cover (Private Sector) 500 -
9. R&R issues - 400
10. Court Cases - 675
11. Law & Order problem 500
Total 7,458* 5,058*
* This does not include 3009 MW projects dropped from 10th Plan

It is pertinent to point out that a number of projects of 10th plan ordered on BHEL were
delayed due to delayed and non-sequential supply of equipment and materials and
inadequate manpower in commissioning teams. Some of the projects expected to be
commissioned during the last quarter of 2006-07 are also running behind schedule due to
the above reasons.

Page 7 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

An analysis was carried out of the projects slipping from 10th Plan. Detail of the thermal
and hydro projects which are expected to slip from the original target are given in the
following Appendices:

Appendix-1.5 List of projects dropped from original 10th Plan target (41,110 MW).

Appendix -1.6 List of the thermal projects slipping from 10th plan target (41,110 mw)

Appendix -1.7 List of the hydro projects slipping from 10th plan target (41110 mw)

1.6 DEMAND FOR POWER

1.6.1 Growth in Generation During 10th Plan


The growth in generation has been 3.2%, 5.1%, 5.2% and 5.2% during 2002-03, 03-04, 04-
05 and 05-06 respectively. In the year 2006-07(upto Dec-2006) a growth rate of 7.5 % has
been recorded. The Compounded Annual Growth Rate(CAGR)of generation during the 10th
Plan period is expected to be about 5.1%. However, higher growth could have been
achieved if adequate gas would have been available for the existing and new gas based
plants commissioned during 10th plan.

1.6.2 Growth in Generation During 11th Plan

Assessment of generation requirement during the 11th Plan is important to work out the
generation capacity requirement to be planned for the 11th Plan. Demand projections of
various utilities are done by the Electric Power Survey (EPS) Committee. The last power
demand projections were made by 16th EPS in 2000 and the 17th EPS Report is under
finalization by the Committee. Besides the EPS, Integrated Energy Policy stipulates
generation to grow at 9% p.a. during 11th Plan. Also, as per National Electricity Policy
(NEP), the per capita electricity consumption is to increase to 1000 units by the year 2011-
12. The Working Group has assessed the generation requirement according to the above
Committee Report/ Policies. Since the requirement worked out to meet the objectives of
National Electricity Policy is higher, the same has been adopted for planning purposes.
Details of the above three assessments are given below:-

(i) 16th EPS Report

The energy requirement by Utilities in 2011-12 is 975 BU at the busbar. Considering about
6.5% - 7% auxiliary consumption, the gross energy requirement is about 1040 BU.

(ii) Integrated Energy Policy (IEP)

As per the Integrated Energy Policy (IEP), issued by the Planning Commission, GDP
growth rates of 8%-9% have been projected during the 11th Plan. Assuming a higher
growth rate of 9% and assuming the higher elasticity projected by the IEP of around 1.0,
electrical energy generation would be required to grow at 9% p.a. during the 11th plan
period. Also generation has to be collectively met by utilities, captive plants and Non-
conventional energy sources. No reliable plans about captive power capacity expansion
are available but based on indications available from the manufacturers for addition in

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

captive capacity and present utilization of available capacity, the generation from captive
plants is expected to increase from 78 BU to 131 BU per annum. Since the load factor of
non-conventional energy sources is very low (about 20% on an average), even though the
capacity projected by MNRE from these sources is about 23,500 MW by the end of 11th
Plan, the expected generation would be only around 41 BU. The generation from these
renewables however has not been taken into account for planning purposes. Based on
these assumptions following scenario emerges:

(i) Likely energy Generation by utilities in 2006-07 663 BU


(ii) Likely Energy Generation by captive plants in 2006-07 78 BU
(iii) Total Likely Generation in 2006-07 741 BU
(iv) Compounded Annual Growth Rate 9%
(v) Required Energy Generation by 2011-12 @ 9% growth rate 1140 BU
over 741 BU
(vi) Less Estimated Energy Generation by captive plants in 2011-12 131 BU
(vii) Total Estimated Generation Requirement from Utilities by 2011- 1008 BU
12

(iii) National Electricity Policy (NEP)

(i) Likely Population by 2011-12 (Census 2001) 121 Crores


(ii) Generation Required if Per Capita Consumption is to be 1210 BU
1000 kwh/yr
(iii) Likely Generation from Captive Plants in 2011-12 131 BU
(iv) Likely Generation from Renewable Plants in 2011-12 41 BU
(v) Requirement of Generation from Utilities (ii-iii-iv) 1038 BU

Requirement of Generation from Utilities by 2011-12 from various methods has been
summarized as below:-

16th EPS Report About 1040 BU


Integrated Energy Policy Report 1008 BU
National Electricity Policy 1038 BU

The requirement of generation as per 16th EPS & National Electricity Policy(NEP) are more
or less same and greater than the requirement as per Integrated Energy Policy. Since the
NEP is the guiding document for the power sector, requirement of generation (from utilities)
for planning purpose adopted is 1038 BU. This would require a generation growth rate of
9.5 % p.a. (CAGR) for utilities. The 16th EPS report stipulates peak demand of 1,57,000
MW by 2011-12 and 1,51,000 MW considering interregional diversity. This has been
considered while assessing the 11th Plan capacity addition.

1.6.3 Growth in generation During 12th Plan


During the 12th Plan period, assuming a GDP growth rate of 9% per annum and elasticity
0.8 as compared to 1.0 during 11th Plan mainly due to adoption of energy efficient
technologies & other Energy Conservation and Demand Side Management measures
being taken up during 11th Plan, electricity demand is likely to grow @ 7.2% p.a. Keeping
Page 9 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

this in view, the energy generation should increase to a level of 1470 BU by 2016-17 from
a level of 1038 BU in 2011-12. However sensitivity analysis have been carried out
assuming 8,9 & 10 % GDP growth rates & GDP-electricity elasticity of 0.9 & 0.8
respectively and the same is given in table below:

Table 1.10

Generation Requirement for 2016-17


( As Per 8,9,10 % GDP Growth)

GDP GDP/ Electricity


Growth Electricity Generation
Elasticity Required
(BU)
8% 0.8 1415
0.9 1470
9% 0.8 1470
0.9 1532
10 % 0.8 1525
0.9 1597

1.7 APPROACH TO SELECTION OF PROJECTS FOR 11TH PLAN:

An analysis of the reasons for slippages of projects from the 10th Plan target has been
carried out above. In order to avoid such slippages while planning for capacity addition
during 11th Plan, efforts have been made to set 11th Plan targets realistically.

The approach adopted for selection of Hydro, Thermal and Nuclear projects have been as
follows:-

1.7.1 Hydro
India is duly concerned about climate change and efforts are on to promote benign sources
of energy. Hydro Power is one such source and is to be accorded priority also from the
consideration of energy security. Irrespective of size and nature of hydro projects, whether
ROR or Storage projects, these are all renewable technologies. However, execution of
hydro projects requires thorough Survey and Investigation, preparation of DPR,
development of infrastructure, EIA and other preparatory works, which are time consuming
and require two to three years for their preparation. It would take about 5 years to execute
a hydro project after the work is awarded for construction. Thus in order to achieve
completion of a hydro project during 11th plan, the project should either be already under
construction or execution should start at the beginning of the plan. The broad criteria
adopted for selection of hydro projects for 11th plan are as under:

• Those hydro projects whose concurrence has been issued by CEA and order for
main civil works is likely to be placed by March 2007.
• Apart from the above, a few hydro projects of smaller capacity which are ROR type
having surface power houses and where gestation period is expected to be less

Page 10 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

than 5 years have also been included. These projects would need to be rigorously
followed up for completion during the 11th Plan.

Keeping in view the preparedness of various hydro projects, a capacity addition of 15, 585
MW is envisaged for 11th Plan.

1.7.2 Nuclear
Nuclear is environmentally benign source of energy and over a period of time, its
proportion in total capacity should increase. Keeping in view the availability of fuel, a
moderate capacity addition of 3,160 MW nuclear plants has been programmed during
the 11th Plan by the Nuclear Power Corporation. All projects are presently under
construction. However, in view of the recent developments in the Nuclear Sector,
capacity addition in nuclear plants during 12th Plan is expected to be much higher.

1.7.3 Thermal

Gas

Although gas is relatively a clean fuel, at present there is uncertainty about the
availability, period of availability and price of gas. Only 2,114 MW gas based capacity
has been planned for 11th Plan where gas supply has already been tied up. This does
not include NTPC’s gas based projects at Kawas and Gandhar, totalling to 2,600 MW,
for which NTPC says that it has the gas supply contract but the matter is sub-judice.
However more gas based projects could be taken up for construction as and when
there is more clarity about availability and price of gas.

Coal & Lignite based Thermal plants

Coal is expected to be main stay of power generation in the years to come. The
following criteria have been adopted for identifying the coal and lignite based projects
for inclusion in the 11th plan.

• Such projects as have already been taken up for execution in the 10th Plan period
itself and are due for commissioning in the 11th Plan period.
• Those thermal projects whose LOA has already been placed by the State and
Central Public Sector Corporations, other inputs also being in place.
• Those thermal projects whose LOA has already been placed and the financial
closure achieved by private developers.
• Those thermal projects whose LOA is expected to be placed by 30th Sept, 2008 and
commissioning is expected during the 11th Plan keeping in view the normal gestation
period, the size of the plant & the type(green field/expansion).

After discussion with the various State Government and Central Generating Companies,
thermal projects with total capacity of 46,635 MW of coal based and 1375 MW lignite
based capacity have been identified for capacity addition during 11th plan.

Page 11 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

1.8 GENERATION PLANNING NORMS

The Indian Power Sector comprises of units of different type of power plants i.e. hydro,
coal, lignite, gas based, DG Sets and nuclear power plants. The unit size of coal based
plants has also been steadily increasing over the years from 30 to 50 to 67.5 MW during
the 70’s to 500 MW at present. During the 11th & 12th Plan periods supercritical units of
660 MW and 800 MW have also been planned. In respect of nuclear plants, 200-220 MW
unit size plants are in operation and 540 MWe reactors have recently been put in operation
during the 10th Plan. 1000 MW units are also under construction by the Nuclear Power
Corporation. In this Chapter Planning Norms have been evolved for different type of plants
with varying unit sizes.

1.8.1 Objective of evolving Norms

In the Planning exercise, generation norms are used as representative performance


parameters of various types of generation sources to estimate the availability of peaking
power and energy from each generating unit. These norms are then used to assess the
availability of energy from each source of generation and thus assess generation capacity
addition required to meet the stipulated demand.

The planning studies require accurate performance parameters of various type of


generating units to assess their availability and energy generation capabilities. Availability
and generation capacity are important parameters for meeting the projected demand in the
country and also in various regions. Availability and PLF are key performance factors
required for the planning studies. Other features used for planning studies are the Auxiliary
Power Consumption and Heat Rate of the generating units, etc. Different types of
generating units have varied operational performance and accordingly different norms have
been used for thermal (coal), gas, hydro and Nuclear projects to make a fare assessment
of the generation capacity requirement.

The impact of size, age and design of plant has been considered while arriving at the
norms. The actual operating data for past 5 years has been collected for all individual units
operating in the country and their average performance worked out. The norms have been
arrived at only after very detailed exercise and analysis of a large data on performance of
various units.

1.8.2 Parameters covered by Norms

Norms for thermal, hydro and nuclear stations have been evolved as all India average
figures. The parameters covered under Norms are as follows:

(a) Availability
(b) Auxiliary Power Consumption
(c) Unit Heat Rate
(d) Plant Load Factor

(a) Availability

The Availability (gross) of the various types of generating units is given in Table 1.11

Page 12 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.11
Availability

Availability (%)
Unit Size
Existing Units Future Units
Thermal 800/660 MW
- 85
(Coal/ lignite)
500/250/210/200 MW 85 85
Below 200 MW 75 85
Below 200 MW operating
below 20 % PLF at 50 -
present
Gas Based OCGT all sizes 90 90
CCGT all sizes 88 88
DG Sets All sizes 75 75
Nuclear All sizes 85 85
Hydro All sizes 87.5 87.5

(b) Auxiliary Power Consumption (APC)

After deliberations, it was concluded that the auxiliary power consumption for 800 MW and
660 MW supercritical units is expected to be in the same range as for other coal based
units of 200 MW class and above. These would be different for units adopting turbine
driven feed pump, motor driven feed pump and for units with or without cooling towers. The
values indicated in the Table 1.12 for coal based units are for units with Turbine driven
Boiler Feed Pumps (BFPs) and using cooling tower for Cooling Water system. Values will
be lower by 0.5% for units without cooling tower. However, values will be higher by 1.5%
for units with Motor driven BFPsThe auxiliary consumption of the various types of
generating units considered is given in Table 1.12

Table 1.12
Auxilliary Power Consumption

Type Unit size A.P.C (%)


Coal-based power 800/660 MW supercritical 7.5%
stations: 500/ 200/210/250 MW 7.5%
Less than 200 MW 12%
Gas-based power Combined Cycle GT 3%
stations Stations
Open Cycle GT Stations 1%
Hydro Stations 0.5%

c) Unit Heat Rate

The Unit heat rates (Gross) used for planning studies for thermal units of various capacities
as arrived at by the past average data are given in Table 1.13

Page 13 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.13
Unit Heat Rates

Unit Size (MW) Heat Rate kcal/kwh


Coal based plants 800(247 kg/cm2, 565C 2325
/592 C)
800(247 kg/cm2,535 C/565 2400
C)
660 2400
500 2425
200/210/250 (KWU) 2460
200/210 (LMZ) 2500
100 MW class 2750
50 MW class 3000
30 MW class 3300
Lignite 200 MW class 2750
Gas Turbine Units Combined Cycle 2000
Open Cycle 2900

(d) Plant Load Factor

The Plant Load Factor (PLF) to be adopted for thermal units of various capacities are
furnished in Table 1.14

Table 1.14
Plant Load Factor

Units PLF
Type Remarks
(%)
800/660 MW 80 Future Units
Coal Based 500/250/210/200 MW 80 Existing and Future Units
Below 100/110 MW 60 80% for future units
Units in ER and NER
40 operating Below 20%
PLF.
125/ 200/250 MW
Lignite Based 75
CCGT 80
Gas Based
OCGT 33
All units Normative capacity
Nuclear Units 68.5
factor

For hydro units it was agreed that the energy generation shall be taken as the designed
energy generation in a 90 % dependable year.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

1.9 GENERATION EXPANSION PLANNING

1.9.1 Eleventh Plan Programme (2007-2012)

To meet the energy requirement of 1038 BU and a peak load of 1, 51,648 MW with
diversity & 5% spinning reserve, a capacity addition of about 72,000 MW is required.
However, based on the preparedness of the projects, it was envisaged that a capacity of
about 68,869 MW is feasible for addition during 11th plan period. These projects have been
categorized as Projects under construction and Committed Projects and summarized in
Table 1. 15 . Details are given at Appendix -1.8

Table 1.15
THERMAL
TOTAL BREAKUP
SECTOR HYDRO NUCLEAR TOTAL
THERMAL
GAS/
COAL LIGNITE
LNG
Projects Under
11,931 16,254 14,115 1,125 1,014 3,160 31,345
Construction
Committed
3,654 33,870 32,520 250 1,100 - 37,524
Projects
Total 15,585 50,124 46,635 1,375 2,114 3,160 68,869

(The above does not include Merchant Power Plants which may additionally come during 11th plan period.)

* Note: Out of the projects totalling to 37,524 MW under committed category as given above, orders for Dadri
Unit-6 (490 MW) & Mezia Ph-II (1000 MW) has been recently placed.

The sector wise break-up of feasible capacity addition during 11th plan is given in Table
1.16.

Table 1.16
SECTOR HYDRO TOTAL THERMAL BREAKUP NUCLEAR TOTAL
THERMAL (%)
COAL LIGNITE GAS/LNG
CENTRAL 9,685 23,810 22,060 1,000 750 3,160 36,655
(53.2%)
STATE 2,637 20,352 19,365 375 612 - 22,989
(33.4%)
PRIVATE 3,263 5,962 5,210 0 752 - 9,225
(13.4%)
ALL-INDIA 15,585 50,124 46,635 1,375 2,114 3,160 68,869
(100%)

In addition to above, thermal projects totalling to 11,545 MW have been identified as best
effort projects. These projects would normally be commissioned in the beginning of 12th
Plan but in case of any constraints in taking up of any of the projects included in 11th plan,
some of these projects would be tried for commissioning during 11th Plan itself.

Page 15 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

A capacity of 13,500 MW has been planned under renewable as per information obtained
from MNRE.

It can be seen from the above profile of capacity addition plan that central sector will play a
lead role with capacity addition of more than half of the capacity addition target. There has
been a good response from states on the need for capacity addition to meet their growing
demand and the states with IPPs, have been earmarked the balance capacity for
execution.. The State owned capacity projected for the 11th Plan is 33.4 % of the total plan
as compared to 27% likely during 10th Plan.

The thermal capacity addition comprises 1 unit of 800 MW, 11 units of 660 MW, 53 units of
500 MW class, 49 units of 210/250/300 MW class, 7 units of 110/125 MW class.

1.9.2 Projects under Construction:

Projects totalling to 31,345 MW are already under construction for likely benefits during
11th plan. The type wise, sector wise details are given in Table 1.17

Table 1.17
Projects under Construction as on 01.01 2007

TOTAL THERMAL BREAKUP


SECTOR HYDRO NUCLEAR TOTAL
THERMAL COAL LIGNITE GAS/LNG
CENTRAL 7,633 7,200 6,450 750 0 3,160 17,993
STATE 2,107 5,852 5,215 375 262 - 7,959
PRIVATE 2,191 3,202 2,450 0 752 - 5,393
ALL-INDIA 11,931 16,254 14,115 1,125 1,014 3,160 31,345

The details are given in Appendix-1.8

1.9.3 Committed Projects:


In addition to projects under construction, a number of projects are under various stages of
development for which necessary inputs are being arranged by the implementing agencies.
Various clearances required for setting up these projects are being obtained which include
environment and forest clearance, cooling water availability, land acquisition, DPR
preparation, concurrence of CEA/ State Government (wherever required), financial tie ups/
CCEA clearance from government, fuel linkages etc. Important milestones towards
obtaining these clearances are being closely monitored and therefore there is reasonable
certainty of these projects materializing during 11th plan. There is commitment from the
Power Companies/ states to implement the projects during 11th Plan. Based on present
status, it emerges that a total capacity of 37,524 MW could be considered as committed
capacity for benefits during 11th plan comprising of 3,654 MW hydro and 33,870 MW
thermal. The details are given in Table 1.18

Page 16 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.18
Committed Capacity
(Orders yet to be placed)

TOTAL THERMAL BREAKUP


SECTOR HYDRO NUCLEAR TOTAL
THERMAL
COAL LIGNITE GAS/LNG
CENTRAL 2,052 16,610 15,610 250 750 0 18,662
STATE 530 14,500 14,150 0 350 - 15,030
PRIVATE 1,072 2,760 2,760 0 0 - 3,832
ALL-INDIA 3,654 33,870 32,520 250 1,100 0 37,524
** Order for 1490 MW namely Mezia Ph-II (1000 MW) & Dadri U-6 (490 MW) have recently been placed.

The details are given in Appendix-1.8

All the hydro projects included under Committed category have been accorded
concurrence by CEA/State Government except four number projects totalling to 485 MW
viz. Vyasi, 120 MW in Uttaranchal (HRT fully excavated, Power House and Dam area
partially excavated), UBDC III, 75 MW in Punjab (DPR prepared earlier being revised,
alloted to Malana Power Company on BOO basis, Tendring in Process), Lower Jurala, 240
MW in Andhra Pradesh (Tendering in process, commissioning period around 4 years, DPR
ready) and Tangu Romai HEP, 50 MW in Himachal Pradesh.

Taking into account the uncertainty in the availability of Gas and prevailing high price of
petroleum products, the thermal capacity addition is predominantly coal based. If gas
becomes available at reasonable price more gas based projects may materialize during
later half of 11th plan.

1.9.4 Projects with Additional Efforts:

In addition to 68,869 MW capacity addition feasible during 11th plan, a capacity of 11,545
MW Thermal can come up during 11th plan with additional efforts. The details are given in
Table 1.19. These projects also form part of shelf of 12th plan projects.

Table1.19
Thermal Projects with Additional Efforts

TOTAL THERMAL BREAKUP


SECTOR NUCLEAR TOTAL
THERMAL
COAL LIGNITE GAS/LNG
CENTRAL 4,190 4,190 0 0 0 4,190
STATE 3,300 2,300 1,000 0 - 3,300
PRIVATE 4,055 4,055 0 0 - 4,055
ALL-INDIA 11,545 10,545 1,000 0 0 11,545

Page 17 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

1.9.5 Decentralised Distributed Generation (DDG)

In some of the areas, it is not possible to extend the grid connected supply of electricity for
meeting the demand of such remote areas, it is proposed to set up some power plants
based on local energy sources available which may be small hydro, non-conventional
sources such as Bio-Mass, Wind, etc and DG sets wherein other sources are not available.
During the XI plan period, it is proposed to add about 5,000 MW of capacity under DDG.

1.9.6 Fuel Requirement

Fuel Requirement during terminal year of 11th Plan (2011-12), considering 68,869 MW
capacity addition during 11th plan and normative PLFs is summarized in Table 1.20. This
is based on a thermal capacity addition of 20,387MW and 50,124MW during the 10th and
11th Plan respectively.

Details regarding coal requirement calculation are given in Appendix-1.9 The actual gas
supplied to power sector at present is of the order of 40 MMSCMD as against requirement
of 61 MMSCMD during current year (2006-07). The requirement of Gas at 90% PLF would
worke out to about 89 MMSCMD.

Table 1.20
Fuel Requirement Estimated during 2011-12

Fuel Requirement (2011-12)


Domestic Coal* 545 MT
Lignite 33 MT
Gas/LNG ** 89 MMSCMD

* The total coal availability from domestic sources is expected to be 482 MT per annum
by 2011-12. Accordingly, imported coal of the order of 40MT, equivalent to 63 MT of
Indian coal, may have to be organised. This quantity may reduce provided production of
domestic coal is increased.

** 89 MMSCMD of gas requirement at 90% PLF has been projected in 2011-12. At


present, the availability of gas is of the order of 40 MMSCMD and therefore not
sufficient to meet the requirement of even existing plants.

1.9.7 Thermal Projects

The capacity of thermal power projects totalling to 50,124 MW (projects under construction
and committed) in terms of their location i.e. pithead, load centre and coastal and also in
terms of unit sizes regionwise is given in Table 1.21 and 1.22.

Page 18 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.21
Details of Thermal Power Projects-By Type

PIT HEAD * LOAD COASTAL TOTAL LIGNITE GAS TOTAL


COAL CENTRE COAL COAL /LNG
COAL
NORTHERN 2,500 9,105 11,605 625 110 12,340
WESTERN 6,430 6,620 500 13,550 250 1,102 14,902
SOUTHERN 500 3,850 3,800 8,150 500 92 8,742
EASTERN 10,870 1,710 12,580 12,580
NORTH
EASTERN 750 750 810 1,560
ALL-INDIA 20,300 22,035 4,300 46,635 1,375 2,114 50,124

* Pit Head stations are those plants having their own dedicated coal transportation system
(MGR/Rope way) and are not dependent upon Railways for coal movement.

Table 1.22
Details of Thermal Power Projects-By Unit Size

800/660 MW 500 MW 210/250 110/125 MW TOTAL GAS/LNG TOTAL


UNITS UNITS 300 MW UNITS MODULE
UNITS
NORTHERN 16 14 5 35 1 36
WESTERN 4 13 17 2 36 3 39
SOUTHERN 1 13 5 19 1 20
EASTERN 7 11 10 28 28
NORTH
EASTERN 3 3 4 7
ALL-INDIA
(NOS.) 12 53 49 7 121 9 130
ALL-INDIA
(MW) 8060 26460 12615 875 48010 2114 50124

1.9.8 Status of Fuel Linkage

Coal
Out of the total likely coal based capacity addition of 46,635 MW,

¾ 32,455 MW have been allocated linkage;


¾ 5,830 MW have been allocated captive coal blocks ;
¾ 4,500 MW linkages are yet to be allocated and 2,500 MW Coal Blocks to be
allocated
¾ 1350 MW are likely to be on imported coal for which formal fuel supply
arrangements are yet to be made.
¾ 20,300 MW capacity is pithead based ;
Page 19 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

¾ 22,035 MW is load centre based and


¾ 4,300 MW coastal power plants.

In the present day scenario, the transmission of electricity from pithead power plants to
load centre works out to be a cheaper option compared to load centre power plant for a
distance of 300 kms onwards at current price level of coal and railway transportation tariffs.
However, following considerations warrant setting up of load centre thermal power plants
as well.

¾ System stability/Security
¾ Security of state grid and emergency supplies to various critical systems in the
state e.g. Railway, Hospital, Airports etc.
¾ To take care of emergencies in case of transmission systems failure
¾ Dispersion of environmental degradation
¾ Problems of right-of-way in case of construction of new transmission lines

Consequently, in the 11th Plan about 42 % coal based capacity is likely to be set up at load
centres.

1.9.9 Gas Scenario:

Due to uncertainty in availability of gas and its high price only about 2,114 MW gas based
projects have been included for benefits during 11th Plan. These projects have already tied
up the gas supply.

At present domestic production of natural gas is around 32-33 BCM. On rough indications
in 2007-08, the target of natural gas production by public sector companies of ONGC and
OIL limited will be 25.23 BCM which might increase to 26.12 BCM in 2011-12. The likely
natural gas production in private sector and through joint ventures is estimated at around
8.60 BCM in 2007-08 which might increase to 23 BCM in 2011-12, if the newly discovered
fields get into commercial production on schedule. Therefore, in the terminal year of the
11th Plan in the Base-Case Scenario in the indigenous production of gas would be of the
order of 49 BCM per annum.

The India Hydro Carbon forum 2025 estimated that by 2011-12 demand for gas would be
313 MMSCMD (equivalent to 114 BCM p.a). Therefore, it is reasonable to expect that
sizeable quantity of Natural Gas would need to be imported to meet the demand in future,
either as LNG or through Trans-national pipelines. Going by the progress of present
negotiations with the natural gas suppliers (Qatar, Iran, Australia), it is expected that about
54 MMSCMD of natural gas (about 19 BCM p.a.) could become available by 2011-12.
However, the investment plans for improvement of LNG infrastructure in future include:

Dahej : 7.5 MMTPA


Dabhol : 5.0 MMPTA
Cochin : 2.5 MMPTA
Hajira : 2.5 MMPTA

and additional 2.5 MMPTA capacity each for Dahej, Cochin and Hazira.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Pricing of Gas

1) Gas Pricing in the APM: Due to dominance of National Oil Companies, namely,
ONGC and OIL, the pricing in India has been administered on cost plus basis. The
gas price payable to ONGC and OIL for its nomination fields is much below the
market price. There will be no further gas available under APM mechanism.

2) Pre NELP Contract: The prices were negotiated between sellers and buyers and
generally linked to fuel oil prices.

3) Gas Pricing in NELP: Contractors including ONGC and Oil have the freedom to sell
the gas at market rated prices. Government approval is required in the gas prices
formally to be used for evaluation of gas for calculating the various non tax dues to the
Government.

4) Pricing of LNG: Pricing of LNG is done at market rates. In future also, the same
principle will be made applicable.

5) Status of development of gas discoveries: The normal process after a discovery


decision on commerciability and submission and approval of development plan of the
commercial discovery. The commercialization of discovery is monitored by DGH
(Director General, Hydrocarbons) and Ministry of Petroleum and Natural Gas with
respect to time frame stipulated in respective PSCs (Production Sharing Contracts).

(i) Reliance (RIL) Fields: The initial development plan of Dhirubhai 1 and 3
discoveries has been approved by the management committee. The DGH
approved original gas in place (OGIP) at 5.5 TCF. The envisaged rate of
production is 40 MMSCMD for a 10 year period. The date of availability of
indigenous gas has been indicated as June, 2008 and no delay has been
reported by DGH based on current work progress.

(ii) Gujarat State Petroleum Corporation (GSPC) field: The block is located in
Krishna Godavari shallow water offshore. The contractor is yet to submit the
appraisal programme for the discovery. No reserve or production can be
realistically estimated until the completion of appraisal of discovery.

(iii) ONGC:ONGC is currently developing G1 and G15 discoveries in Central Gujarat


basin. The production of gas is expected in March, 2007 and the estimated gas
production from the above two fields is about 2.1 MMSCMD for the period of 7
years.

1.9.10 Hydro Projects:

Out of the total hydro capacity of 15,585 MW included in the 11th Plan,

¾ 11,931 MW are under construction.


¾ 3,169 MW have been accorded concurrence by CEA/State Government and
are awaiting investment decision/work award.
¾ 485 MW the DPR is ready and concurrence of CEA/State Government is
awaited.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

The details of hydro projects in terms of storage/run-of-river (ROR)/pumped storage (PSS)


is given in Table 1.23.

Table 1.23
Details of Hydro Power Projects

ROR STORAGE PSS TOTAL


NORTHERN 6,145 1,320 1,000 8,465
WESTERN 520 400 0 920
SOUTHERN 653 525 0 1,178
EASTERN 1,623 0 675 2,298
NORTH EASTERN 40 2,684 0 2,724
ALL-INDIA 8,981 4,929 1,675 15,585

1.10 TWELFTH PLAN PERSPECTIVE (2012-2017)

The requirement of installed capacity and capacity addition to meet the generation
requirement during the 12th Plan period as discussed in Para 1.6.3 of this Report are given
in Table below:

Table 1.24

Capacity addition required during 12th plan (2012-17)

GDP GDP Electricity Peak Installed Capacity


Growth /Electricity Generation Demand Capacity Addition
Elasticity Required (BU) (MW) (MW) Required
During 12th
PLAN
(MW)
8% 0.8 1,415 2,15,700 2,80,300 70,800
0.9 1,470 2,24,600 2,917,00 82,200
9% 0.8 1,470 2,24,600 2,917,00 82,200
0.9 1,532 2,33,300 3,03,800 94,300
10 % 0.8 1,525 2,32,300 3,02,300 92,800
0.9 1,597 2,44,000 3,17,000 1,07,500

It would be seen from the above table that under various growth scenarios, the capacity
addition required during 12th plan would be in the range of 70,000 - 1,07,500 MW, based
on normative parameters.

The Working Group recommends a capacity addition of 82,200 MW for the 12th Plan
based on Scenario of 9% GDP growth rate and an elasticity of 0.8%.

This is very close to the projection of draft 17th EPS report based on requirement of about
86,000 MW during 12th Plan.

During 12th plan about 30,000 MW capacity addition is likely to be based on hydro and
about 11,000-13,000 MW will be nuclear based. The balance capacity addition of about
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Demand for Power and Generation Planning Working Group on Power for 11th Plan

50,000 MW will be from thermal projects. Shelf of projects identified for likely benefits
during 12th plan is given at Appendix 1.10. The projects indicated in Appendix 1.8 as
projects with best efforts will also form part of 12th plan shelf of projects. Shelf of projects
for likely benefits during 12th plan is summarized in Table 1.25.

Table 1.25
Shelf of Projects for 12th Plan

TYPE MW Capacity likely in 11th


plan with best efforts
(MW)
Hydro 40,658 0
Thermal 1,14,018 11,545
Coal 94,185 10,545
Lignite 4,250 1,000
Gas/LNG 15,583 -
Nuclear 12,800 -
Total 1,67,476 11,545

The Working Group recommends the following for 11th and 12th plan capacity additions.

1.11 MEDIUM TERM PLAN: 11TH PLAN (2007-12)

It has been estimated that depending upon the preparedness of various projects about
68,869 MW capacity addition is feasible during 11th plan (15,585 MW hydro, 50,124 MW
thermal and 3,160 MW nuclear). This comprises 46,635 MW coal based plants, 2,114 MW
gas/LNG based plants and 1,375 MW lignite based plants. In addition renewable energy
sources (MNRE has projected a grid connected renewable capacity addition of 13,500 MW
during 11th plan) would also contribute towards augmenting the power generation.
Demand side management and energy efficiency measures would also help in this
direction. Efforts shall also be made to realize benefits from 12th plan projects which can
be brought with additional efforts during 11th plan (Projects indicated as Best Efforts in
Appendix 1.8). Efforts are also underway to tap surplus power from new captive power
plants of about 12000 MW into the grid. A 5% spinning reserve would give a comfortable
margin since normally during an emergency situation, capacity equivalent to the highest
size unit and the next highest size unit in the system would suffice as reserve. Total coal
requirement during 2011-12 would be about 545 million tones per annum.

1.12 LONG TERM PLAN: 12TH PLAN (2012-17)

Under various growth scenarios, the capacity addition required during 12th plan would be in
the range of 71,000 - 1,07,500 MW, based on normative parameters.

The Working Group recommends a capacity addition of 82,200 MW for the 12th Plan based
on Scenario of 9% GDP growth rate and an elasticity of 0.8%.

During 12th plan about 30,000 MW capacity addition is likely to be based on hydro and
about 11,000-13,000 MW will be nuclear based. The balance capacity addition of about

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

50,000 MW will be from thermal projects. A shelf of projects totalling over 1,50,000 MW
has been identified and given in Appendix 1.10

All necessary inputs for projects need to be tied up well in advance, which may pose
very big challenge for power sector as a whole.

1.13 NEW INITIATIVES

1.13.1 Initiatives in Thermal Power Development

Efforts were made to bring in highly efficient super critical technology in the country for
thermal power plants and execution of six super critical units of 660 MW capacity each was
taken up during the 10th Plan period. The first unit of 660 MW based on super critical
technology is likely to be commissioned during the first year of 11th Plan i.e. 2007-08. The
11th Plan feasible capacity addition of coal based plants includes 12 units based on super
critical technology with a capacity of 8060 MW which is about 18% of total coal capacity
planned for 11th Plan. More and more power projects based on super critical technology
are under planning stage and they would yield benefit during the 12th Plan period. It is
envisaged that more than 50-60% of capacity addition of thermal plants during 12th plan
period would be based on super critical units. This would also help in reducing the Carbon
dioxide emission from new coal fired capacity.

1.13.2 Ultra Mega Power Projects

Ministry of Power in the year 2006 has launched an initiative of development of coal based
ultra mega projects with a capacity of 4,000 MW each on tariff based competitive bidding.
Ultra Mega Power projects are either pit head based projects having captive mine block or
coastal projects based on imported coal. Sasan UMPP, a pithead plant in Chattisgarh
based on domestic fuel and Mundra UMPP in Gujrat based on imported coal have already
been awarded for execution to the respective developers. According to the bids submitted
by these developers only one unit of 660 MW is expected to be commissioned during the
XIth plan and the remaining unit during 12th Plan. Other projects where considerable
progress has been made are coastal projects in Andhra Pradesh and Tamil Nadu and a pit
head based project in Jharkhand. Further the projects under consideration include pit head
projects in Orissa and Chatisgarh and coastal projects in Maharashtra and Karnataka.

To facilitate tie-ups of inputs and clearances project specific Shell companies are set up/to
be set up as wholly owned subsidiaries of the Power Finance Corporation Ltd. These
companies will undertake preliminary studies and obtain necessary clearances including
water, land, fuel, power selling tie-up etc. prior to award of the Project to the successful
bidder.

Initially five sites were identified by CEA in different states for the proposed Ultra Mega
Power Projects. These include two pithead sites one each in Madhya Pradesh and
Chhattisgarh and three coastal sites in Gujarat, Karnataka & Maharashtra. On the request
of the State Govts of Orissa & Andhra Pradesh, two more locations have been identified for
Ultra Mega Projects consisting of a pithead location in Ib-Valley coalfield in Orissa and a
coastal site at Krishnapatnam in Andhra Pradesh. It is proposed to set up pithead projects

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

as integrated proposals with corresponding captive coal mines. For the coastal projects
imported coal shall be used.

The projects are to be developed with a view to result in minimum cost of power to the
consumers. Because of bigger capacity, the cost of the project would be lower due to
economy of scale, these projects would be environmental friendly as supercritical
technology is proposed to be adopted to reduce emissions. Further, a time bound action
plan for preparation of project report, tie-up of various inputs/clearances, appointment of
consultants, preparation of RFQ/RFP is being followed. Once the developer is selected, the
ownership of the Shell companies shall be transferred to the successful bidder.

Following six shell companies as 100% subsidiaries of Power Finance Corporation have
already been formed:

a) Sasan Power Limited (Madhya Pradesh)- Pithead


b) Coastal Gujarat Power Limited (Gujarat)
c) Coastal Maharashtra Mega Power Limited (Maharashtra)
d) Coastal Karnataka Power Limited (Karnataka)
e) Akaltatra Power Limited (Chhattisgarh)-Pithead specific.
f) Coastal Andhra Power Ltd.

The name of seven ultra mega power projects proposed in various states is as follows:

i) Sasan Ultra Mega Project (Madhya Pradesh)


ii) Mundra Ultra Mega Project (Gujarat)
iii) Akaltara Ultra Mega Project (Chhattisgarh)-
iv) Tadri Ultra mega project (Karnataka)
v) Girye Ultra Mega project (Maharashtra)
vi) Krishnapatnam Ultra Mega Power Project (Andhra Pradesh)
vii) Orissa Ultra Mega Power Project (Orissa)

The inputs of above projects are tied up by Shell companies. As soon as developers/
bidders are selected, the ownership shall be transferred to them. The likely commissioning
period Ultra Mega projects is 69 months from the signing of agreement, which is expected
in February, 2007.

1.13.3 High Hydro Development

50,000 MW Hydro Initiative was launched in 2003 and Preliminary Feasibility Report
(PFRS) of 162 projects totalling to 48,000 MW were prepared. Out of this 77 projects with
total capacity of about 37000 MW for which first year tariff is expected to be less than
Rs.2.50/unit were selected for execution. Hydro projects have longer gestation period and
therefore there is a need to formulate a 10 year plan for hydro projects. In 11th plan a
capacity addition of over 15,500 MW has been earmarked keeping in view the present
preparedness of these projects. Projects totalling to a capacity of 30,000 MW have been
identified for 12th Plan on which necessary preparations have to be made from now
onwards to ensure their commissioning during 12th Plan. Thus the effect of 50,000 MW
initiative would be visible in 12th Plan period. Preparation of DPR and various clearances
and approval etc for these projects are to be obtained during the first two years of 11th

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Plan. It is recommended that CEA should closely monitor the progress of preparedness of
DPR of these projects and their further execution.

1.13.4 Decentralised Distributed Generation (DDG)

In some of the remote areas, it is not techno-economically feasible to extend the grid
supply. For meeting the demand of such remote areas, it is proposed to set up some power
plants based on local energy sources available. These are small hydro and non-
conventional sources such as Bio-Mass, Wind, DG sets etc wherein other sources are not
available. During the XI plan period a capacity addition of about 5,000 MW of capacity
under DDG is envisaged.

1.13.5 Merchant Power Plants

A merchant power plant does not have long term PPA for sale of its power and is generally
developed on the balance sheet of developers. Government of India has reserved coal
block with reserves of 3.2 Billion Tons of coal for allotment by Screening Committee of
Ministry of coal for merchant and captive plants. About 10,000 -12000 MW capacity is
expected to be developed through this initiative. This capacity has not been taken into
account while working out the capacity required in the 9.5% growth in generation scenario.
Capacity addition through this route would further contribute to better economic growth,
better reliability of power, more spinning reserve and above all would promote creation of
competition in the electricity market.

1.13.6 Coal Bed Methane

The Directorate General of Hydrocarbons has estimated the country’s resource base or
Coal Bed Methane (CBM) to be between 1400 BCM (1260 Mtoe) and 2500 BCM (2340
Million Tonnes Oil Equivalent). To give impetus to exploration and production, the
government has formulated the CBM policy. Based on two rounds of bidding under this
policy, contracts have been signed with PSUs/private companies for the exploration and
production of CBM in 13 blocks. An additional three blocks have been taken up for
development on the basis of nomination. The estimated investment in these blocks is
about Rs.560 crore and the likely CBM resources generated is estimated as 850 BCM (765
Mt). ONGC maintains that commercial production of CBM from some of these blocks will
start in 2007. Thus at the very low current rate of production, the proven gas and CBM
reserves, together, can last for some 50 years.

1.13.7 Coal Gasification

In-situ coal gasification can significantly increase the extractable energy from India’s vast
in-place coal reserves. This is so because in-situ coal gasification can tap energy from
coal reserves that cannot be extracted economically based on available open
cast/underground extraction technologies. However, in-situ gasification has not yet been
deployed commercially anywhere in the world. ONGC is engaged in trials to establish the
feasibility and economics of this technology for Indian coal and lignite in collaboration with
Russia. Neyveli Lignite Corporation has tied up with an Australian group to pursue in-situ
gasification of lignite. In-situ gasification has many environmental advantages. The
problems of overburden removal and ash disposal faced by conventional coal mining and
use are eliminated. Gasification is the first step towards a clean coal technology since

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

carbon can be captured from the syn-gas produced and sequestered in the mine or
pumped back in oil or gas fields to enhance oil or gas recovery. In-situ coal gasification,
with or without carbon sequestration could be eligible for carbon credits. Finally, using this
process at abandoned coalmines might provide an economically attractive option for full
extraction of energy from in-place reserves. Clearly, the potential for domestic energy
supply based on in-situ coal gasification can be large but it has not yet been assessed.

1.14 CAPTIVE POWER PLANTS

Large number of captive plants including co-generation power plants of varied type and
sizes exist in the country which are either utilized in process industry or used for in-house
power consumption. A number of industries have set up their own captive plants so as to
get reliable and quality power. Some Captive plants are also installed as stand-by units for
operation only during emergencies when the grid supply is not available. The installed
capacity of CPPs has increased from 588 MW in 1950 to 19,103 MW in March 2005.
Captive plants including co-generation power plants could, therefore, play a supplementary
role in meeting the country’s power demand.

After the enactment of Electricity Act 2003, there is a renewed interest in captive
generation. Surplus power, if any, from captive power plants could be fed into the grid as
the new act (Electricity Act 2003) provides for open access, in non-discriminatory way.

It is envisaged that the generation from non utility captive power plants by the year 2011-12
may be of the order of 131 billion units which results into a CAGR of 10.5% p.a in captive
generation.

1.14.1 Provisions of Electricity Act and National Electricity Policy

Electricity Act, 2003 defines “Captive Generating Plant” as a power plant set up by any
person to generate electricity primarily for his own use and includes a power plant set up
by any co-operative society or association of persons for generating electricity primarily for
use of members of such co-operative society or association.

The captive power plant can be set up as stipulated under Section 9 of the Act. Provision of
which are as below:

(1) Notwithstanding anything contained in this Act, a person may construct, maintain
or operate a captive generating plant and dedicated transmission lines:

Provided that the supply of electricity from the captive generating plant through the
grid shall be regulated in the same manner as the generating station of a generating
company.

(2) Every person, who has constructed a captive generating plant and maintains and
operates such plant, shall have the right to open access for the purposes of
carrying electricity from his captive generating plant to the destination of his use:

Provided that such open access shall be subject to availability of adequate transmission
facility and such availability of transmission facility shall be determined by the Central
Transmission Utility or the State Transmission Utility, as the case may be:

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Provided further that any dispute regarding the availability of transmission facility shall be
adjudicated upon by the Appropriate Commission.

The Electricity Rules issued by MoP notification dated 8.6.2005 prescribes that
No power plant shall qualify as a 'captive generating plant' under Section 9 read with
clause (8) of section 2 of the Act unless:

a. In case of power plant –

(i) not less than twenty six percent of the ownership is held by the captive
user(s), and

(ii) not less than fifty one percent of the aggregate electricity generated in such
plant, determined on an annual basis, is consumed for the captive use:

Provided that in case of power plant set up by registered cooperative


society, the conditions mentioned under paragraphs at (i) and (ii) above
shall be satisfied collectively by the members of the co-operative society;
Provided further that in case of association of persons, the captive user(s) shall
hold not less than twenty six percent of the ownership of the plant in aggregate
and such captive user(s) shall consume not less than fifty one percent of the
electricity generated, determined on annual basis, in proportion to their shares in
ownership of the power plant within a variation not exceeding ten percent;

b. In case of a generating station owned by a company formed as special purpose vehicle


for such generating station, a unit or units of such generating station identified for
captive use and not the entire generating station satisfy(s) the conditions contained in
paragraphs (i) and (ii) of sub-clause (a) above including -

Explanation:-
1. The electricity required to be consumed by captive users shall be determined with
reference to such generating unit or units in aggregate identified for captive use
and not with reference to generating station as a whole; and
2. The equity shares to be held by the captive user(s) in the generating station shall
not be less than twenty six per cent of the proportionate of the equity of the
company related to the generating unit or units identified as the captive generating
plant.
3. It shall be the obligation of the captive users to ensure that the consumption by the
captive users at the percentages mentioned in sub-clauses (a) and (b) of sub-rule
(1) above is maintained and in case the minimum percentage of captive use is not
complied with in any year, the entire electricity generated shall be treated as if it is
a supply of electricity by a generating company.

On the captive power generation the National Electricity Policy stipulates as under:-

Para 5.2.24: The liberal provision in the Electricity Act, 2003 with respect to
setting up of captive power plant has been made with a view to not only securing
reliable, quality and cost effective power but also to facilitate creation of
employment opportunities through speedy and efficient growth of industry.

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Para 5.2.25: The provision relating to captive power plants to be set up by group
of consumers is primarily aimed at enabling small and medium industries or
other consumers that may not individually be in a position to set up plant of
optimal size in a cost effective manner. It needs to be noted that efficient
expansion of small and medium industries across the country would lead to
creation of enormous employment opportunities.

Para 5.2.26: A large number of captive and standby generating stations in India
have surplus capacity that could be supplied to the grid continuously or during
certain time periods. These plants offer a sizeable and potentially competitive
capacity that could be harnessed for meeting demand for power. Under the Act,
captive generators have access to licensees and would get access to consumers
who are, allowed open access. Grid inter-connections for captive generators
shall be facilitated as per section 30 of the Act. This should be done on priority
basis to enable captive generation to become available as distributed generation
along the grid. Towards this end, non-conventional energy sources including co-
generation could also play a role. Appropriate commercial arrangements would
need to be instituted between licensees and the captive generators for
harnessing of spare capacity energy from captive power plants. The appropriate
Regulatory Commission shall exercise regulatory oversight on such commercial
arrangements between captive generators and licensees and determine tariffs
when a licensee is the off-taker of power from captive plant.

1.14.2 Captive Generation

At present, the Installed Capacity of Captive Power Plants (1MW and above) is about
19,000 MW. The energy generation from captive power plants (1MW and above) during the
year 2004-05 has been about 72 billion units. The growth of captive plant capacity during
the period 2001-02 to 2004-05 and the growth of energy generation from captive plants
during this period has been 3.67% and 5.01% respectively. During the year 2004-05
surplus power of 4.2 BU from captive was fed into the grid. Further, a capacity addition of
about 12,000 MW from Captive plants is expected during the 11th Plan based on
information/details received from captive power plant manufacturers and about 20% of
12,000 MW is expected to be surplus and available to be fed into the grid. However, to
harness surplus capacity from captive power plants it is essential that various bottlenecks
being faced are addressed and technical and commercial issues are resolved to make the
export arrangements attractive and commercially viable.

It is envisaged that the generation from non utility captive power plants by the year 2011-12
may be of the order of 131 billion units which results into a CAGR of 10.5% p.a.

1.14.3 Discussions with Forum of Regulator (FOR)

The issue of various charges levied by SERCs was taken up by Ministry of Power with
Forum of regulators (FOR). During the meeting of FOR, it was decided to constitute a Sub-
group consisting of CERC, State Regulators of Gujarat, Karnataka, Chhattisgarh, Andhra
Pradesh, Delhi, Orissa, Rajasthan, Haryana, MoP and CEA. A meeting of the Sub-group
was held on 16th-17th November, 2005 and these issues were discussed and various
measures were recommended for facilitating open access in distribution and harnessing

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

surplus captive generation in the country. Major recommendations of the Sub-group are as
under:

¾ Reasonable cross subsidy surcharge and other charges to provide some


economic incentive to the consumers to avail open access.

¾ The procedure for grant of open access should be simple enough to encourage
the consumer to exercise his choice.

¾ All future Captive generation capacity need not be fully locked in long term
PPAs. 15-20% of the future capacity could be kept out of long term PPAs so that
it is available to open access consumers or in the market.

¾ The SERCs should allow recovery of some portion of fixed cost in addition to the
variable cost of captive generation. The captive generators may offer their
surplus power on the basis of a firm schedule. Infirm power from CPP should
also be considered for purchase.

¾ Benchmark tariff for generators using different fuels may be indicated by the
Appropriate Commission for purchase of power from CPP of up to 15 MW plant
size.

¾ There should be no penalty for reduction of contract demand by any captive


plant

¾ For computation of wheeling charges and losses, the Sub-Group recommended


the following methodology:

The transmission charges should be specified on the basis of voltage level of


transmission.
Only technical losses should be taken into account while specifying
transmission losses
Losses should be applied in kind, i.e., the drawal schedule of the Open
Access Consumer shall be the injection schedule adjusted for losses.

¾ The Group felt that reactive energy charges from the open access consumers or
captive power plant owners may be levied by the licensee of the area at par with
other users.

1.14.4 Status of Various issues Identified

Various Regulatory/Technical/Commercial issues raised during regional level meetings as


well as meetings in CEA held with CPPs/Industry Associations etc. along with the status of
action taken is given as under.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Sl. Issues Action/Status


No.
1. Open Access, which is the key provision to attract investment in new Most of the SERCs have already
generation/ transmission/distribution projects, should be made issued regulations.
effective as per the provisions of Electricity Act, 2003 and National
Electricity Policy,
2. Surcharge/ Cross Subsidy Surcharge in some States is very high Tariff policy notified by GoI on 6th
January, 2006
3. Very high, discriminate electricity duty imposed on captive power Sub group recommends that
generation and imposition of cess on captive power generation by electricity duty should not be imposed
some State Govts. on generation of power from captive
power plant. This may be considered
by State Govts.
4. Reduction in contract demand by CPP not allowed by state DISCOM Recommended by Sub group
resulting in higher demand charges
5. Demand charges levied on connected load irrespective of actual Recommended by Sub group
drawal from DISCOM.
6. Exorbitant wheeling charges for intra-state transmission system for Recommended by Sub group
transfer of surplus power from captive plant.
7. Other charges levied on CPPs by Regulatory Commissions. Recommended by Sub group
– Additional surcharge
– Parallel operation charge
– Contract Demand Charge/ Annual Minimum Guarantee
Charge
– Transmission Charge
– Fixed Charge for electricity connection
– SLDC charge
– Reactive energy charge
– Banking charge

1.14.5 Recommendations for

The Working Group discussed various recommendations of the Regional level meetings
held with CPPs/ Industry Associations etc. and workshop held by MoP & CEA and feels
that Captive/group captive generation should be encouraged as envisaged in the National
Electricity Policy and Integrated Energy Policy. To further address the problems faced by
the captive generators and harnessing surplus power from the CPPs, following
recommendations are made by the Sub-group.

(A) General- Captive & Renewable/ Cogeneration Plants

i) To initiate action through Energy Departments of all the States to identify the surplus
capacity available from the captive power plants and approach State
Utilities/Discoms to buy the surplus power available from the captive power plants.

ii) As one of the option, CPP may be given tariff at frequency based UI rates under
ABT mechanism.

At present the UI rates are as under:


Frequency UI Rate (Rs.)
49.0 Hz 5.70
49.5 Hz 3.45
50.0 Hz 1.50
50.5 Hz. 0.00

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

iii) Single Window at State level to handle all issues relating to installation of Captive
plants i.e. environment clearance, open access etc):

(As per amended Electricity Act CPPs have been freed from licensing. However,
permission needs to be obtained in respect of environmental clearance as well as
third party sale of power (Open Access). The single window to handle all such
issues will greatly facilitate in obtaining the required clearance within a stipulated
period).

iv) Electricity duty plus cess to be reduced as it is high in certain States i.e. AP–
25p/unit; Chattisgarh- 10p/unit; West Bengal- 20p/unit.

v) Electricity duty to be imposed on consumption and not on generation

vi) Custom duty on import of all fuels (coal, gas and Furnace oil) to be fixed at
reasonable rates.

vii) Open access to be allowed in phases by SECRs who have issued regulations

Connected demand 10 MW and above – June 2005/April 2006


Connected demand 1 MW and above – April 2007/ December 2008

viii) Monitoring of capacity addition and generation from captive/co-generation plants is


required to be strengthened. In this exercise a methodology is required to be
worked out in association with Ministry of Non-Conventional Energy Sources as
there is an apprehension that the co-generation plants and renewable energy
sources plants which are captive also are included in the Installed Capacity of Utility
as well as in Captive Plants Capacity.

(B) Renewable/Co-generation Plants

i) SERCs to encourage and specify minimum percentage for purchase of power from
renewable and co-generation plants.

ii) Mandating the distribution utilities in the State to purchase renewable energy to
reach at least a target of 5% of total energy consumption in the area of each
DISCOM/licensee by the year 2012.

iii) Co-generation power is to be given “Must Run” status. Co-generation power should
be treated at par with non-conventional energy sources such as wind energy.
Therefore, no backing down of the co-generation power be resorted to by the off
taking distribution utilities except in events of force majeure.

iv) Provision of banking facility may be considered and withdrawal of banked energy
may not be linked with grid frequency and time of day in respect of renewable
energy sources captive/co-generation plants.

iv) There should be no cross-subsidy surcharge on surplus power to be supplied by a


renewable source based captive/Co-generation plant.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

1.15 MAXMISING GENERATIOM FROM EXISTING PLANTS AND AGS&P

Optimization of generation from the existing generation capacity is of utmost importance in


the resource crunch environment. The installation of new power projects involves large
investment and long gestation period. Among various options considered by the Working-
Group, following options are recommended:

1. Renovation & Modernization and Life Extension of Power Plants


2. Energy Audits
3. Better O & M practices

1.15.1 Renovation & Modernization and Life Extension of Power Plants

The main objective of Renovation & Modernization (R & M) of power generating units is to
make the old operating units well equipped/ modified/ augmented with a view to improve
their performance in terms of efficiency, output, reliability, safety and availability as
compared to the original values. It involves replacement and modification of various
systems/equipment and overcoming design deficiencies, if any, & obsolescence. It also
involves activities relating to viable technological up gradation.

1.15.2 R&M and LE of Thermal Power Plants

A Renovation and Modernisation (R&M) Programme for Thermal Power Stations was
launched by the Government of India all over the country way back in September 1984 for
completion during the Seventh Plan Period. This programme was successfully completed
and intended benefits were achieved. In the subsequent 8th and 9th Plans, Renovation and
Modernisation and Life Extension (LE) works were carried out on a number of older
generating units which resulted in improvement in their performance and extension of their
useful life by about 15 to 20 years. This is evident from the fact that the average plant load
factor (PLF) of these thermal power stations increased from 53.9% in the year 1990-91 to
74% during the year 2006-07 (upto Nov. ).

At the beginning of the 10th plan, 106 old thermal units aggregated to a capacity of about
10413 MW were identified for Life Extension works at an estimated cost of Rs.9200 crores
for completion during 10th Plan. However progress was not satisfactory due to high
execution time & cost involved in LE works. The cost of LE was also not economically
feasible considering the age of plants and there was reluctance from power plants to shut
down their units for longer periods due to prevailing power shortages.

In view of above a new initiatives called Partnership of Excellence was taken up the details
of which is given in following paragraphs.

1.15.3 PARTNERSHIP IN EXCELLANCE (PIE) PROGRAMME

Under this programme generating companies who were performing well provide assistance
in improving performance of non-performing companies. Towards this initiative, CEA
identified 22 power stations of 11 utilities, with a capacity of 7930.5 MW across the country.
Out of these, 17 stations with an operating capacity of 5050 MW were entrusted to NTPC
and one stations (280 MW) to TATA power. On remaining 4 stations the respective utilities

Page 33 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

are taking their own course of action. The plants entrusted to NTPC recorded an additional
generation of power-3690 MUs corresponding to an equivalent capacity addition of 720
MW, considering national average PLF. Capacity addition of this order requires an
investment of around Rs.3,000 crore at a Greenfield project. Some additional units have
also been identified for R&M and life extension. The decision for investment for R&M/LE
will be based on cost benefit analysis. If not economically viable installation of new plants
at existing sites, may be considered.

Steps involved in implementation of PIE Programme

‘PIE’ programme is envisaged to be implemented in 3 phases as under:

Phase-I : Toning up of O&M practices and training of operating personnel

Phase-II: Procuring essential spares from Original Equipment Manufacturers (OEM),


carrying out comprehensive Capital Overhauling and doing essential R&M works
to improve PLF above 60 % .

Phase-III : Residual Life Assessment ( RLA) studies and major Renovation &
Modernisation / Life Extension ( R&M / LE ) works based on techno-economic
viability.

Present status of progress

The following steps have been taken / are being taken on identified stations:

• Agreements with concerned power utilities have been signed by better performing
Partners viz. NTPC and Tata Power between October 2005 to December 2005.

• NTPC has already deputed 136 executives at 13 stations and has also set up head
office at Patna for implementation and monitoring of ‘PIE’ programme. On remaining
2 PIE stations of NTPC namely Bandel and Santaldih, PIE activities could not be
undertaken due to lack of interest from WBPDCL as reported by NTPC. As informed
by NTPC, WBPDCL has planned to phase out Bandel TPS (unit 1 to 4) due to
ageing of these units. Santaldih TPS has been operating at low PLF due to
inadequate capacity of Coal Hahdling Plant.

• Tata Power has deputed its executives at Dhuvran station (units-1 & 2) of GSECL
for effective implementation and monitoring of ‘PIE’ programme.

• Phase-I activities of improved O&M practices and minimum overhauling have been
mostly completed on 13 PIE stations by NTPC and 1(one) PIE station by Tata
Power.

• Implementation of management practices as per NTPC’s O&M system Manual is in


progress.

• Phase-II activity of Comprehensive overhauling has been initiated on 13 PIE


stations by NTPC. In order to accelerate the pace of supply of spares and obviate
the need for signing of MOUs with the concerned power utilities, a system of
placement of Open Order on BHEL by power utilities has been introduced. Most of
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Demand for Power and Generation Planning Working Group on Power for 11th Plan

the power utilities have placed open order for supply of spares on BHEL in Oct- Nov
2006.

• The details of PLF and Generation in December 2006 and during April to December
2006 on various stations covered under PIE programme as well as same during the
corresponding period last year are given in Annexure-1.11 . It can be seen that 10
stations under PIE programme with partnership with NTPC and Tata Power have
shown marked improvement in Generation and PLF during the period April to
December 2006 as compared to corresponding period last year.

Achievements

The programme has started showing results in the form of improvement in PLF. In
December 2006, 8 (eight) stations achieved PLF above 65% as shown below:

Sl Utility Power Capacity under Plant Load Factor ( % )


no. Station PIE (MW) during
Dec, 05 Dec, 06
1. JSEB Patratu units 80 MW 38.00 83.15
1&2
2. DVC Durgapur 350 MW 42.23 81.29
units-3 &4
3. IPGCL Rajghat 135 MW 84.31 81.17
units-1 &2
4. DVC Chandrapura 390MW 70.98 78.04
units-1,2 &3
5. TNEB Ennore units 280 MW 21.37 73.49
2,3 &5
6. TVNL Tenughat 420 MW 45.73 72.33
TPS units-
1&2
7. UPRVUNL Parichha 220 MW 26.49 71.28
Units-1,2 of
8. DVC Bokaro ‘B’ 630MW 65.03 68.58
units-1,2 &3

Most of other stations also showed improvement in their PLF. This improvement in
performance has been achieved through implementation of phase-I activities of PIE
programme. Further, improvement in PLF is expected on completion of phase-II activities.
The phase-II of the programme, therefore, needs to be continued and new stations which
are perpetually running at PLF below 60% and have sufficient remaining lifetime (Details
given in table 1.26) can be considered for inclusion under PIE programme.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.26
Stations running at PLF lower that 60% to be considered for
Inclusion under PIE

Name of the Cap. (MW) PLF( %) up to


Station Dec
05-06 06-07
Faridabad Extn. 3x60 =180 50.3 40.9
(HPGC)
Chandrapur 4x210+3x500=2340 68.4 58.0
(MSEB)
Neyveli Lig. St. II 7x210 = 1470 74.7 58.3
( NLC )

1.15.4 R&M and Uprating of Hydro Plants:

The normal life expectancy of a hydroelectric power plant is 30 to 35 years after which it
needs life extension. Many of the existing hydro power stations could be modernized to
generate reliable and higher yield by minor modifications. By adopting modern equipment
like static excitation, micro-processor based controls, electronic-micro processor based
governors, high speed static/Numerical relays, data logger, optical instruments for
monitoring vibrations, air gaps, silt content in water etc. availability of hydro power stations
could be improved and outages minimized.

In situations like run-of-the river schemes in Himalayan and Sub-Himalayan region,


excessive silt contained in the inflows causes enormous damage to the under water
parts of turbines, requiring rehabilitation almost every year.

Upgrading of hydro plants calls for a systematic approach in view of a number of


influencing parameters pertaining to the prime mover besides its repercussions on the total
hydro electric development which itself may be a sub system of an integrated power
development. A number of hydraulic, mechanical, electrical and above all economic factors
play a vital role in deciding the course of action and the modalities of an upgrading /
uprating programme. Uprating of hydro power plant cannot thus be considered in isolation.
It has to be strategically planned, may be in certain steps, keeping in view all the techno-
economic considerations.

(a) Review of 10th Plan Programme of R&M and LE – Hydro

The Group reviewed the Hydro R&M & Uprating Programme as well as the achievements
during the 10th Plan. A Summary of the projects planned, completed and on which work is
ongoing in the 10th Plan is as furnished in Table 1.27

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.27
Summary of R&M and Life Extension Programme and Achievements for 10th Plan –
Hydro

Description R&M LE
No. of Projects Covered 37 16
Capacity (MW) 5257.85 642.25
Estimated Cost (Rs. Crores) 1116.11
Expenditure incurred (Rs. Crores) till
1032.83
5/06
Targeted Benefits (MW ) 137.83 636.25
Actual Benefits achieved 114.4 498.75

Project-wise details of projects completed during 10th Plan is furnished at Appendix 1.12
and of ongoing projects programmed for completion during 10th are furnished in Appendix
1.13.

(b) Programme for 11th Plan – Hydro

The Group deliberated on the 11th Plan programme for hydro R&M & Uprating Schemes
and a Summary of 11th Plan programme as well as ongoing projects and those projects on
which work is yet to commence is furnished in Table 1.28.

Table 1.28
Summary of R&M and Life Extension Programme and Achievements for 11th Plan -
Hydro

Description R&M LE
No. of projects Covered 60 41
Capacity (MW) 11278.15 4025.2
Estimated Cost (Rs. Crores) 3478.5.5
Expenditure incurred (Rs. Crores) till
232.827
5/06
Targeted Benefits (MW) 302.25 4025.21
Actual Benefits achieved

Project-wise details of ongoing hydro RM&U projects for completion in 11th Plan are
furnished in Appendix 1.14. Project-wise details of hydro RM&U projects for completion in
11th Plan but works on which are yet to be taken up for implementation are furnished in
Appendix 1.15.

1.15.5 R&M and Plant Life Extension of Nuclear Plants

During the course of the operating life of a Nuclear Power Plant, it goes through a series of
routine and several safety reviews, based on which periodic improvement/safety upgrades
are implemented. The coolant channel of older units (which commenced commercial
operation in 1993) Pressurized Heavy Water Reactors need replacement. After about 10
years of operation at full power, these coolant channels are replaced during a long shut
down. Advantage of this shut down is taken for safety upgrades and plant life extension, as
required.
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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Such R&M activities have been completed for Rajasthan Atomic Power Station Unit-2 and
Madras Atomic Power Station Unit-1&2.

R&M activities as above have been taken up on NAPS-1 and are expected to be
completed during 2006-07. Similar work is planned for NAPS-2 and KAPS-1 in the 11th
Plan. Details of financial outlay in respect of these projects are given in Table 1.28.

Table 1.28
Summary of R&M and Life Extension Programme and Achievements for 11th Plan –
Nuclear
(Figs in Rs cr.)
Name of Estd. Anticipated 2007-08 2008-09 2009-10 2010-11 2011-12 Total 11th
project Completion exp. by Plan
cost 10th Plan
end
NAPS - 247 171 105 105
1&2
KAPS-1 133 5 66 54 119

1.16 ENERGY EFFICIENCY IMPROVEMENT THROUGH ENERGY AUDIT

As per Energy Conservation Act 2001, Energy audit means the verification, monitoring and
analysis of use of energy including submission of technical report containing
recommendations for improving energy efficiency with cost benefit analysis and an action
plan to reduce energy consumption. Also under the provision of Energy Conservation Act
2001, all designated consumers declared by the Government would have to undertake
mandatory Energy Audit studies by accredited Energy Auditors.

Energy Audit studies aim at determining the present level of performance of main power
plant equipment and selected sub-systems and comparing them with design figures.
Reasons for deterioration are analysed. The studies may also involve review of design of
various equipment to see if these are over-designed. Techno-economic viability of
introducing new efficient technologies is also included in the energy audit studies. In fact
the basic objective is to reduce the consumption of various inputs (coal, oil, power, water)
per unit of power generation.

Areas normally covered in a power plant are:

ƒ Boiler efficiency
ƒ Air heater performance
ƒ Mills performance
ƒ Furnace radiation losses
ƒ Turbine heat rate
ƒ Regenerative system performance
ƒ HP/IP cylinder efficiency
ƒ Condenser performance
ƒ Auxiliary power consumption
ƒ Lighting systems
ƒ DM water consumption
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Demand for Power and Generation Planning Working Group on Power for 11th Plan

ƒ Secondary fuel oil consumption


ƒ Any other sub-system i.e. air compressor, air conditioning etc.

In view of the foregoing, it is suggested that “Energy Efficiency Cell” shall be created at all
thermal power stations. This cell shall be responsible for the following:

¾ Internal Energy Audit groups shall be set up in each power plant. Capacity
building of the efficiency group must be done to enable them to carry out
Energy Audit tests on their own.

¾ Regular audits shall also be got conducted from accredited Energy Auditors.

¾ All recommendations that emerge from these audits must be implemented if


these are techno-economically feasible. Short term measures can be made
part of the annual plan/annual overhaul of the unit whereas long term
measures can be taken up under the R&M schemes of these stations.

¾ Energy Efficiency Awareness campaign shall be taken up among staff of the


power plant.

Better O&M practices

Better O&M practice is also an effective tool to improve the performance of existing plants
major ones being as follows:

1. Run the machines at parameters near to design parameters.


2. Keep proper fuel/air mixture to reduce high carbon loss in ash .
3. Replacement of air heater seal to avoid air ingress in Air preheaters.
4. Maintain the recommended fineness of Pulverized coal.
5. Reduce the excessive R/H spray & enforce burner tilt mechanism to control
reheat temperature.
6. Instrumentation needs to be checked and calibrated regularly. Wide variation
in readings may be observed and corrected.
7. Control CW flow to check under cooling of condensate.
8. Attend air ingress into condenser.
9. Keep the condenser tubes clean.

1.17 ACCELERATED GENERATION & SUPPLY PROGRAMME (AGS&P) SCHEME

Under the AGS&P Scheme, MOP is providing interest subsidy through financial institution
(PFC & REC) with an objective to reduce the rate of interest on the term loans for R&M of
State Sector thermal power grants.

1.17.1 Scope of the scheme

The Scope of the AGS&P Scheme is as follows:

• The Scheme covers all States/UTs.


• The financial support, to be provided for the renovation/modernization and uprating
works undertaken by the Utilities in Government /Public Sector.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

• The Scheme is applicable to thermal power stations of station capacity

Note: Release of AG & SP funds under new loans sanctioned at Stage II and Stage III
shall take place only after appointed consultant/ partner confirms that the O&M practices
have reached satisfactory level.

1.17.2 Salient features of the scheme

The salient features of the scheme extension of Accelerated Generation & Supply
Programme to Tenth Five Year Plan period and Govt. directions/Guidelines thereto are as
under:-

a) The assistance under the AG&SP scheme shall be limited to only state sector R&M
generation projects including those based on non-conventional energy sources.
Interest subsidy under AG&SP schemes will be admissible for D.V.C.’s R&M
projects also.

b) Only those States, which perform satisfactorily with respect to the agreed milestones
of the reform MoUs entered into with the Ministry of Power and of the Action Plans
to achieve commercial viability in accordance with the Reform programme, would be
eligible for funding under AG&SP. The better performing states would be given
preference. The milestones of Action Plans would be stringent and will aim at
progressively reducing the gap between the cost per unit and the revenue collected
per unit of electricity.

c) The total assistance under the Scheme will be limited to the budget provision in the
Tenth Five Year Plan.

d) Interest subsidy under the scheme has been reduced from 4% in Ninth Plan to 3%
in Tenth Plan i.e. 1.4.2002 to 31.3.2007. The subsidy for projects in North-Eastern
Region would be 4%. Interest Subsidy would be restricted to difference of lending
rate and benchmark rate subject to a maximum of 3% and 4% respectively.. The
benchmark rate would be rate of interest on 12 years’ Government security for that
financial year.

e) Grants under the AG&SP scheme will be provided to State Electricity Boards
(SEBs), State Generating Corporations (SGCs) and state Power Departments
(SPDs) for carrying out studies which help to achieve policy objectives of the
Government relating to Power sector. These include Power sector Reform and
Restructuring Studies, System Studies, Renovation & Modernisation (R&M) Studies,
Life Extension (LE) Studies, retainer consultancy for R&M and Environment/social
studies. Distribution studies which are covered under the proposed APDRP
Scheme will not be eligible for grant of assistance under AG&SP Scheme. some
minimum expenses relating to overall power sector reforms and restructuring
studies on a need based approach would be considered for funding under the
AG&SP Programme. To this extent guidelines issued in OM No. 32024/23/2001-
PFC dated 24.12.2002 and 7th March, 2003 and supplemented for the sanction of
appropriate level of funds within the overall allocation of the 10th Plan as budgeted
from year to year.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

f) Interest subsidy in respect of generation project covered under AG&SP will be


reduced in proportion to the delay in commissioning of the project in following
manner:

Reduction %Delay(D/X) Reduction


0% - 10% Nil >55% - 70% 2%
>10%-25% 0.5% >70% - 85% 2.5%
> 25% - 40% 1.0%
>40% - 55% 1,5% Above 85% 3.0%

D is delay (in days) = Actual Commissioning date- agreed Commissioning Date


X (in days) = Agreed Commissioning Date – Date of sanction of loan.

The reduction in interest subsidy will be applicable from the actual date of
commissioning or the date of 85% delay, whichever event occurs earlier. Wherever
the interest subsidy is less than 3%, the same would be spread over seven slabs
proportionately as per formula laid down above and the concerned lending institution
will account for it to the Ministry of Power as interest subsidy is front ended.

(g) All generation projects which are estimated to be commissioned in Tenth Plan
period would be eligible for assistance under AG&SP

1.17.3 Eligibility criteria for the scheme

(a) The project authority are to ensure that there has been annual overhaul of the plant
on regular basis. In case, this has not been done so, the same have to be done by
the project authority In case, if it is found that improvement can be affected by
making a change in the management of the plant, that should be resorted to by the
project authority without any delay.

(b) Emphasis will be on the rehabilitation of core and essential equipments of the plant.
However, while accepting replacement of major items, clear evidence of failure or
frequent operational trouble will form the main criteria.

(c) The replacement of minor items which could otherwise be covered under the routine
and preventive maintenance of power stations, shall not be covered under this
scheme.

(d) The R&M Report should contain brief history of the project, technical details, unit-
wise annual generation data since commissioning, details of forced outages,
modifications/replacement works undertaken earlier, problem now encountered and
the reasons for poor performance. The report should also indicate the nature &
scope of the R&M works involved, cost estimates and the cost benefits analysis etc,

(e) The proposals shall be considered subject to their merits, techno-economic viability
and availability of funds

1.17.4 Procedure for availing interest subsidy

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

i) If the project is found suitable for renovation/modernization work, leading to optimum


generation of power. The State Government/ SEBs will then be firm up the cost
estimates of the identified works so as to fix the financial requirements for the R&M
activities to be undertaken. A firm time schedule will be worked out to complete the
work. The project authority/State 0Government must furnish a certificate that loans
for R&M absolutely necessary .

ii) The PFC and R.E.C. shall have to include a clause in their Term Loan Agreement
with the Project authorities to recover the subsidy amount along with the penal
interest of 3% more alongwith the recovery of Term Loan for cases of default where
the interest subsidy is cancelled by MOP for violation of terms of conditions of this
circular. Loan can be recalled by the FIs before project completion or where project
is not completed for whatever reason. They shall create a ‘pari-passu’ charge for the
recoveries to be made by them for refund of subsidy amount to MOP. The un -
disbursed amount of interest subsidy released by MOP to the FIs along with the
penal interest as above will, be returned immediately in all such cases.

iii) MOP will examine the proposal received from the financial institution and approve
interest subsidy on the basis of overall viability of the proposal, fulfilment of general
terms and conditions, availability of funds and general policies of MOP.

iv) All expenses towards the cost of the project, over and above the Ministry’s support
agreed to, including escalations in the cost, if any, will have to be met by the
Executing Agencies.

It is recommended that R&M schemes shall be continued during 11th and 12th Plan also.
However it must be ensured that routine maintenance activities are not included in these
schemes. Only activities which aim at increasing the efficiency of the unit or improve the
availability or are required to meet environmental norms or are aimed at renovating
obsolete equipment- Controls and Instrumentation are included in R & M schemes. Further
for Life Extension schemes, a cost benefit analysis should be carried out vis-à-vis
installation of new unit at the same site.

The Group recommends that the AGS&P Scheme shall continue.

1.18 NON CONVENTIONAL ENERGY SOURCES

Our country has significant potential for generation of power from Non Conventional
Energy Sources such as Wind, Small Hydro, Bio mass and Solar Energy. Limited
availability of fossil fuel like coal and gas has further highlighted the importance of power
from these sources. In addition, these sources provide a particularly attractive solution for
meeting requirement of power at remote locations, in case of which it is not feasible to
extend the grid. All efforts are therefore being made to tap these resources for generation
of power to supplement power from Conventional Sources.

1.18.1 Development of Non-Conventional Energy Resources

The total estimated medium-term potential (2032) for power generation from renewable
energy sources such as wind, small hydro, solar, waste to energy and biomass in the
country is about 1,83,000 MW. The grid interactive installed capacity from renewable is

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

likely to increase from about 3,500 MW at end of 9th Plan to 23,500 MW at the end of 11th
Plan. The grid interactive Installed Capacity as on 30.09.2006 is 8996 MW. Source wise
details of Potential and Installed Capacity as on 30.09.2006 are furnished in Table 1.29

Table 1.29
Potential and Installed Capacity of Renewable Power
(AS ON 30.09.06)
(Figures in MW)
Sources / Systems Estimated mid- Cumulative
Term (2032) Installed Capacity
Potential (As on 30.09.2006)
Wind Power 45,000 6070.20
Bio- Power(Agro residues & 61,000 466.50
Plantations)
Co-generation Baggasse 5,000 571.83
Small Hydro (up to 25 MW) 15,000 1849.78
Waste to Energy 7,000 34.95
Solar Photovoltaic 50,000 2.74
TOTAL 1,83,000 8996.00
Source MNRE

Sector-wise details of renewable energy sources are as follows:

1.18.2 Tenth Plan – Target and Achievement

A target of 3075 MW was set for the 10th Plan in respect of grid interactive renewable
power against which an achievement of 4635 MW has been made during the 1st four years
of the 10th Plan and a target of 1888 MW has been set for 2006-07 i.e. last year of the 10th
Plan. Source wise details are furnished in Table 1.30.

Table-1.30
10th Plan Targets and Achievements for Grid Interactive Renewable Power

(Figures in MW)
Sources / Systems Achievement Target
Target (2002-03 to 2005- 2006-07
06)
As on 31.03.2006
Wind Power 1500 3665 1515
Biomass Power Baggasse Co- 700 532 228
generation Biomass Gasifiers
Small Hydro (up to 25 MW) 600 388 132
Waste to Energy -MSW 80 28 13
-Industrial Waste
Solar Power 145 0.73 0.00
TOTAL 3075 4614 1888
Source MNRE

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

11th Plan Target

Details of 11th Plan target of Grid Interactive renewable power are furnished in Table 1.31.
Table 1.31
11th Plan Tentative Targets for Grid Interactive Renewable Power

(Figures in MW)

Sources / Systems Target for 11th plan

Wind Power 10,000


Biomass Power 2,100
Baggasse Co-generation
Biomass Gasifiers
Small Hydro 1,400
(up to 25 MW)
TOTAL 13,500
Source MNES

The above target of 13,500 MW for grid interactive renewable power does not include 1000
MW from Distributed Renewable Power System (DRPS).

The programme is based on the draft report of the Working group on Non- Conventional
Energy Sources for 11th Plan

1.18.3 Summary of Installed Capacity

Considering the 10th Plan and tentative 11th Plan capacity addition as detailed above,
Summary of Installed Capacity is furnished below:

Installed capacity by the end of 9th Plan (As on 31.3.2002) 3,475 MW


Installed capacity by the end of 2005-06 (As on 31.3.2006) 8,088 MW

Programme for 2006-07 1,888 MW


th
11 Plan programme for 2007-12 13,500 MW
Total Installed Capacity by the end of 11th plan 23,476 MW

Say 23,500 MW
Reliable figures for generation from these projects are not available but assuming average
PLF of 20%, this will generate about 131 BU by 2011-12.

1.19 ISSUES TO BE ADDRESSED AND STRATEGY TO BE ADOPTED FOR 11th


PLAN

Transition of the Indian Power Sector from the era of SEBs to separate generation,
transmission and distribution utilities, independent regulatory bodies and entry of private
and foreign players is expected to fundamentally transform the power scenario. However,
since this restructuring is still under the process of evolution, a number of crucial issues

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

need to be addressed and sorted out. A conducive environment needs to be created to


fructify the benefits expected from the Acts and the Policies of the Government.

With a view to achieve the above as also learning from experiences during the past Plans,
it is essential to identify Issues, both direct and indirect involving infrastructural constraints.
These Issues need to be addressed to facilitate the planned capacity of about 68,869 MW
during the 11th Plan. Some of the Issues pertaining to Capacity addition and maximizing
generation from existing plants are as follows:

1.19.1 Analysis and Close monitoring of 11th Plan projects

In order to fulfill the Government’s Mission of providing power to all by the end of 11th Plan
i.e.2012, a detailed analysis of the status of 11th Plan projects has been carried out with a
view to tie up all requisite inputs and to remove all bottlenecks in their implementation.
Details of the analysis given in Table 1.32.

Table 1.32
Status of 11th Plan Projects
Figures in MW
Under Construction 31,345
Hydro 11,931
Thermal 16,254
Nuclear 3,160
Committed projects 37,524
Feasible for benefit during 11th Plan 68,869

In so far as projects under construction are concerned, no difficulty is foreseen in


implementation of these projects

1.19.2 Status of Committed Capacity in 11th Plan on which construction is yet to


start are given in Table-1.33
Table-1.33
Figures in MW
Hydro 3,654
Thermal 33,870
Coal 32,520
Lignite 250
Gas 1,100
Total 37,524

1.19.2 Preparedness of Projects on which Construction is yet to start are given in


Table-1.34 & Table 1.35.

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table-1.34
Hydro
Status MW
Projects awaiting investment 3,169
decisions/work award
Concurrence to be accorded by 485
CEA/State Government
Total 3,654

Table-1.35
Thermal
Status MW
Coal blocks/linkages yet to be 7,000
allocated
Total 7,000

In case of above projects, for each project a milestone time-schedule has been created
which would ensure timely completion of each activity. This should be adhered to avoid
bunching of projects in the last two year of 11th plan and to ensure that plan targets are
met.

1.19.3 Augmentation of Infrastructural facilities

Implementation of this large capacity would call for augmentation of manufacturing


capabilities in the various input sectors namely,

¾ Main Plant and equipments - BHEL has drawn up a Plan for capacity augmentation
from 6,000 MW to 10,000 MW with an investment of Rs 1600 crs. This programme
is in an advanced stage of implementation and is expected to be completed by
2007. BHEL plans to further enhance its capacity as deemed necessary, on receipt
of sustained capacity addition programme along with the mix in the 11th & 12th Plan
periods.

¾ Key inputs - This would call for augmentation in manufacturing capacities of steel,
cement, aluminum and also in the manufacturing capabilities of various associated
equipment like, large motors, coal handling plants, water treatment plant, ash
handling and ash utilizing facilities, etc.

¾ Construction agencies – This area also needs large augmentation as at present


there is lack of qualified contractors for taking up construction of large hydro and
thermal power plants.

1.19.4 Arrangement for fuel requirement

Coal based capacity of about 46,635 MW has been identified for commissioning during
11th Plan period and the requirement of coal during 2011-12 has been assessed as 545
Million tons per annum. Details of total requirement of coal viz-a-viz indigenous production
plans are given in Table 1.36 & Appendix 1.9

Page 46 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Table 1.36
Fuel Requirement (Tentative) during 2011-12

Fuel Requirement (2011-12)


Coal* 545 MT
Lignite 33 MT
Gas/LNG** 89 MMSCMD

* From domestic sources, total coal availability is expected to be 482 MT per annum by
2011-12. Accordingly, imported coal of the order of 40MT, equivalent to 63 MT of Indian
coal, may have to be organised. This quantity may reduce provided production of
domestic coal is increased.

** 89 MMSCMD of gas requirement at 90% PLF has been projected in 2011-12. At


present, the availability of gas is of the order of 40 MMSCMD and therefore not
sufficient to meet the requirement of even existing plants.

¾ On an average, power sector is being supplied 70-75% of the coal produced by Coal
India Ltd. The above requirement of coal also includes the coal produced by
individual organizations from captive blocks allotted to them.

¾ Tie up of coal requirement as per the above schedule shall be ensured

As regarding requirement of gas 2114 MW gas based projects have been planned during
11th Plan and these projects have firm tie up of gas.

1.19.5 Summary of Fund Requirement for Generation Projects

The details of the overall capacity addition programme of 68,869 MW during 11th Plan and
fund requirement of Rs 4,10,897 crore including start-up projects for capacity addition in
12th Plan are tabulated in Table 1.37.

Table 1.37
th
11 Plan Capacity addition & Fund Requirement (including advance action funds for
12th plan projects)
Sector Fuel Type Likely capacity Fund Requirement
addition (MW) (Rs. crore)
Central Hydro 9,685 27,231
Thermal 22,310 74,782
Nuclear 3,160 8,970
Total 35,155 1,10,982
State Hydro 2,637 4,349
Thermal 21,852 75,278
Total 24,489 79,627
Private Hydro 3,263 13,234

Page 47 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Sector Fuel Type Likely capacity Fund Requirement


addition (MW) (Rs. crore)
Thermal 5,962 17,858
Total 9,225 31,092
All India Hydro 15,585 44,814
Thermal 50,124 1,67,918
Nuclear 3,160 8,970
Funds for projects
Total 68,869 2,21701
benefiting in 11th Plan
Funds for projects Hydro 31,734 86,291
benefiting in 12th Thermal 47,225 81,877
Plan Nuclear 12,800 21,208
Total 91,759 1,89,195
Grand Total 1,52,963 4,10,896

The overall requirement of funds in 11th Plan has been estimated as Rs. 10,31,600 crore
including NCES, Captive and Merchant Power Plants. The details along-with sources of
funds are given in Chapter 10 of the report.

1.19.6 Manpower Requirement

In order to facilitate a capacity addition of 68,869 MW during the 11th Plan, trained and
qualified manpower is the most essential requirement. Recruitment of proper personnel
and necessary training facilities and programmes need to be made available. However
quantification of the same is given in Chapter-7 on Manpower Requirement.

1.20 RECOMMENDATION OF THE GROUP

1. The Working Group recommends generation planning based on growth of energy


generation requirement of 9.5%. Keeping in view the above objectives and
preparedness of various projects the Working Group recommends capacity addition
of 68,869 MW during 11th Plan as per details given below:
Table 1.38

TOTAL THERMAL BREAKUP TOTAL


SECTOR HYDRO NUCLEAR
THERMAL COAL LIGNITE (%)
GAS/LNG
36655
CENTRAL 9685 23810 22060 1000 750 3160
(53.2%)
22989
STATE 2637 20352 19365 375 612 -
(33.4%)
9225
PRIVATE 3263 5962 5210 0 752 -
(13.4%)
68869
ALL-INDIA 15585 50124 46635 1375 2114 3160
(100%)

Page 48 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

2. States are required to take an active role in the capacity addition programme by
their own agencies & by private sector participation through tariff based competitive
bidding route on the lines of developments of Ultra Mega Power Project. In the 11th
plan addition of less than 50% of total capacity is targeted in states and private
sector. It is recommended that in 12th Plan more than 50% capacity should come
through initiative of the states.
3. Some of the states do not have resources for capacity addition in their states. Such
states should tie up long term PPAs with surplus states/generation companies.
4. Manufacturing capacity of BHEL needs to be enhanced to meet the capacity
addition programme envisaged in 11th & 12th Plans.
5. A 10 year plan for hydro development is to be pursued in view of higher gestation
period. A hydro capacity of 30,000 MW has been identified for commissioning during
12th Plan. The survey and investigation, preparation of DPR, statutory clearances
should be vigorously followed up right from now to enable their commission during
12th Plan. The CEA should closely monitor progress on these projects. .
6. The Working Group recommends continuation of PIE programme during 11th Plan
also.
7. In addition to capacity addition programme, concerted efforts to continue in regard
to:

- Development of captive power plants.


- Maximising Generation from existing plants.
- Energy Efficiency improvement through Energy Audit.
- Better O & M practices.
- RM&U/Partnership in Excellence (PIE) Programme.
- Development of Non-Conventional Energy Sources.

8. Major recommendations for facilitating open access in distribution and harnessing


surplus captive generation in the country are as under:

¾ Reasonable cross subsidy surcharge and other charges to provide some


economic incentive to the generators to avail open access.
¾ The SERCs should allow recovery of some portion of fixed cost in addition to the
variable cost of captive generation. The captive generators may offer their
surplus power on the basis of a firm schedule. Infirm power from CPP should
also be considered for purchase.
¾ There should be no penalty for reduction of contract demand by any industry
having captive plant.

********

Page 49 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix –1.1

SUMMARY OF CAPACITY ADDITION TARGET OF 41,110 MW DURING 10th PLAN


(REGION WISE, SECTOR WISE AND STATUS WISE)

(Figures in MW)
HYDRO THERMAL NUCLEAR TOTAL
A SECTOR WISE

CENTRAL 8,742 12,790 1,300 22,832


STATE 4,481 6,676 0 11,157
PRIVATE 1,170 5,951 0 7,121
TOTAL 14,393 25,417 1,300 41,110
B REGION WISE

NORTHERN 7,274 5,046 0 12,320


WESTERN 3,752 6,604 1,080 11,436
SOUTHERN 1,158 5,998 220 7,376
EASTERN 1,860 7,075 0 8,935
NORTH EASTERN 349 669 0 1,018
A & N Islands 0 25 0 25
TOTAL 14,393 25,417 1,300 41,110

C STATUS WISE

SANCTIONED ON
GOING 8088 7,634 1,300 17,022
CEA CLEARED 3504 9,327 0 12,831
STATE CLEARED 130 648 0 778
NEW SCHEMES 2671 7,808 0 10,479
TOTAL 14393 25,417 1,300 41,110

Page 50 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix 1.2

LIST OF PROJECTS COMMISSIONED DURING 10TH PLAN UPTO 31.12.2006

(2002-03)

Capacity
Name of the Project Sector/State Type
(MW)
THERMAL
Pragati CCPP S.S/Delhi Gas 121.2
Pragati CCPP S.S/Delhi Gas 104.6
Ramgarh CCGT-2 S.S/Rajasthan Gas 75.3
Simhadri TPS C.S./A P Coal 500
Neyveli FST Ext. C.S/Tamilnadu Lignite 210
Peddapuram CCGT P.S/ A P Gas 78
Raichur U-7&8 SS/Karnataka Coal 210
NLC-II Ext U-0 PS/ Tamilnadu Lignite 250
Valuthur CCGT SS/ Tamilnadu Gas 94
Talcher-II CS/Orissa Coal 500
Rokhia II U- SS/Tripura Gas 21
Baramura GT Ext. SS/ Tripura Gas 21
Likakhong DG SS/Manipur Diesel 18
Bamboo flat DG PS/A&N Diesel 20
Sub-Total (Thermal) 2223.1
HYDRO
Baspa-II PS/HP Hydro 200
Sardar Sarovar SS/Guaratj Hydro 100
Bansagar Tons-III SS/MP Hydro 20
Bansagar Tons-II SS/MP Hydro 15
Srisailam LBPH SS/AP Hydro 300
Sub-Total (Hydro) 635
Total (Thermal + Hydro) (2002-03) 2858.1
(2003-04)
Thermal
Kota TPS St-IV SS/Rajasthan Coal 195
Suratgarh III SS/ Rajasthan Coal 250
Dhuvaran CCGT SS/Gujarat Gas 106.6
Neyveli FST Ext. CS/Tamilnadu Lignite 210
Kutralam CCPP SS/Tamilnadu Gas 100
Talcher – II CS/Orissa Coal 500
Sub-total (Thermal) 1361.6
Hydro
Nathpa Jhakri CS/HP Hydro 1500
Chamera-II CS/HP Hydro 300
Baspa-II PS/HP Hydro 100
Indira Sagar JV CS/MP Hydro 500
Srisailam LBPH SS/AP Hydro 150
Almattti Dam SS/Karnataka Hydro 15
Page 51 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Kopili ST-II CS/Assam Hydro 25


Sub-Total (Hydro) 2590

NUCLEAR
MAPS-2 Uprating CS/Tamilnadu Nuclear 50
Sub-Total (Nuclear) 50

Total(Thermal + Hydro+Nucl.) (2003-04) 4001.6

(2004-05)
Thermal
Rihand-II CS/UP Coal 500
Panipat U-7&8 SS/Haryana Coal 500
Akrimota TPP SS/Gujarat Coal 125
Ramagundam CS/AP Coal 500
Karuppur CCPP PS/Tamilnadu Gas 70
Mezia U-4 CS/DVC Coal 210
Talcher-II CS/Orissa Coal 1000
Bairabi HFO SS/Mizoram Diesel 22.9
Rangat Bay SS/A&N Diesel 6.0
Sub-Total (Thermal) 2933.9

HYDRO
Indira Sagar JV CS/MP Hydro 500
Sardar Sarovar SS/Gujarat Hydro 350
Almatti Dam PH SS/Karnataka Hydro 165
Sub Total (Hydro) 1015.0
Grand Total (T+H) 2004-05 3948.9

(2005-06)
Thermal
Rihand-II CS/UP Coal 500
Akrimota TPP SS/Gujarat Coal 125
Karuppur CCPP PS/Tamilnadu Gas 49.8
Jojobera PS/Jharkhand Coal 120
Valentharvi PS/Tamilnadu. Gas 38
Jagrupadu CCPP PS/AP Gas 220
Paricha Extn. SS/UP Coal 210
Dhuvaran SS/Gujarat Gas 72
Vemagiri-I PS/AP Gas 233
Rokhia GT SS/Tripura Gas 21
Sub-Total (Thermal) 1588.8

NUCLEAR
TAPP Unit 3&4 CS/Maharashtra Nuclear 540
MAPS-1 Uprating CS/TN Nuclear 50
Sub-Total (Nuclear) 590

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

HYDRO
Dhauliganga SS/Uttranchal Hydro 280
Sardar Sarovar Ss/Gujarat Hydro 800
Almatti Dam PH SS/Karnataka Hydro 110
Pykara Ultimate ST SS/Tamilnadu Hydro 150
Sub-total (Hydro) 1340

Grand Total (T+N+H) 2005-06 3518.8

2006-07 Upto 31.12.06


Thermal
Valentharvi PS/Tam Gas 14.8
Vemagiri-I CCGT PS/AP Gas 137
Ratnagiri Gas (JV) JV/Maha Gas 740
Vindhyachal NTPC Thermal 500
Unchahar III NTPC Thermal 210
Paricha Extn. SS/UP Coal 210
Sub-Total (Thermal) 1811.8
Nuclear
Tarapur 3 & 4 CS/Maha Nuclear 540
Sub-Total (Nuclear) 540
Hydro
Vishnuprayag PS/Uttranchal Hydro 400
Tehri I THDC Hydro 500
Larji SS/HP Hydro 126
Bhawani Kathalai Tam Hydro 30
Sardar Sarovar SS/Guj. Hydro 200
Bansagar-IV MP/SS Hydro 20
Marikheda MP/SS Hydro 40
Sub-Total (Hydro) 1316
Grand Total (T+N+H) 3667.8
ALL INDIA -10TH PLAN CAPACITY
ADDITION TILL DATE
Thermal (Coal+Gas+Diesel) 9919
(Hydro) 6896
(Nuclear) 1180
GRAND TOTAL MW UP TO 31.12.06 17995

Page 53 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.3

LIST OF POWER PROJECTS FOR BENEFITS DURING 10TH PLAN


(Central, State & Private Sector)
SUMMARY

Plant Name ORIGINAL TARGET PRESENT STATUS

HYDRO 14393 8854


CENTRE 8742 4495
STATE 4481 3659
PRIVATE 1170 700

THERMAL 25417 20387


CENTRE 12790 10284
STATE 6676 7348
PRIVATE 5951 2755

NUCLEAR 1300 1400

TOTAL-ALL-INDIA 41110 30641


CENTRE 22832 16179
STATE 11157 11007
PRIVATE 7121 3455

NOTE:
1. PROJECTS AND FIGURES IN RED COLOR ARE THOSE SLIPPING FROM ORIGINAL TARGET
OF 41,110 MW

2. PROJECTS AND FIGURES IN GREEN CLOUR ARE ADDITIONAL PROJECTS AND BENEFITS AS
PER MID TERM REVIEW

3. FIGURES IN BLUE ARE AS PER PRESENT STATUS IN NOVEMBER 2005

SOG-Sanctioned on Going C-Central Sector


CEA- Cleared by CEA S-State Sector
SC-State Cleared P-Private Sector
NEW- Yet to be cleared JV-Joint Venture

Page 54 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

LIST OF POWER PROJECTS FOR BENEFITS DURING 10TH PLAN


(Central, State & Private Sector)
Plant Name Fuel Type Sector Capacity MW ORIGINAL PRESENT Likely date of
TARGET STATUS commissioning

NORTHERN REGION

CENTRAL SECTOR

NHPC
CHAMERA II HYDRO C 300 300 300 Commissioned
DULHASTI HYDRO C 390 390 390 U 2-Feb 07,
U 1&3-Mar 07
DHAULI GANGA HYDRO C 280 280 280 Commissioned
SEWA II HYDRO C 120 120
SUB-TOTAL (NHPC) 1090 1090 970

NJPC
NATHPA JHAKRI HYDRO C 1500 1500 1500 Commissioned
RAMPUR HYDRO C 400 400
SUB-TOTAL (NJPC) 1900 1900 1500

NTPC
RIHAND II COAL C 1000 1000 1000 Commissioned
UNCHAHAR III COAL C 210 210 210 Commissioned
DADRI II COAL C 490 490
SUB-TOTAL (NTPC) 1700 1700 1210
NPC
RAPP U-5 NUCLEAR C 220 0
SUB-TOTAL (NPC) 220 0 0

THDC
TEHRI I HYDRO C 1000 1000 1000 U 2,3&4-
Commissioned
U 1 -Mar 07
KOTESHWAR HYDRO C 400 400 0
TEHRI PSS PSTOR C 1000 1000 0
SUB-TOTAL (THDC) 2400 2400 1000

NLC
BARSINGSAR LIGNITE C 500 250

TOTAL NR (CENTRAL 7590 7340 4680


SECTOR)

STATE SECTOR
DELHI
PRAGATI (GT2 +ST) GAS S 225.78 225.78 225.78 Commissioned
SUB TOTAL (DELHI) 225.78 225.78 225.78

HARYANA
YAMUNANAGAR COAL S 600 0
PANIPAT U 7&8 COAL S 500 500 500 Commissioned
SUB TOTAL (HARYANA) 1100 500 500

Page 55 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

HP
LARGI HYDRO S 126 126 126 Commissioned
KASHANG -I HYDRO S 66 66
SUB TOTAL (HP) 192 192 126

J&K
BAGHALIHAR HYDRO S 450 450 0
SUB TOTAL (J & K) 450 450 0

PUNJAB
GHTPP-II COAL S 500 500 500 U 1-Mar 07
U 2- May 07*
SHAHPURKANDI HYDRO S 168 168
SUB TOTAL (PUNJAB) 668 668 500

RAJASTHAN
RAMGARH-2 GAS S 75.32 75.32 75.32 Commissioned
DHOLPUR CCGT GAS S 330 220 GT 1&2-Mar 07
ST - Aug 07*
GIRAL LIG U-1 LIGNITE S 125 125 February-07
MATAHANIA CCPP LNG S 140 140
KOTA TPS ST IV COAL S 195 195 195 Commissioned
SURATGARH III COAL S 250 250 250 Commissioned
SUB TOTAL (RAJASTHAN) 1115.3 660.32 865.32
UP
PARICHHA EXTN COAL S 420 210 420 Commissioned
ANPARA C COAL S 1000 500 0
SUB TOTAL (UP) 1420 710 420
UTTARANCHAL
MANERIBHALI II HYDRO S 304 304 304 U 1 - Sep 07*
U 2 - Oct 07*
U 3 - Nov 07*
U 4 - Dec 07*
SUB TOTAL(UTTARANCHAL) 304 304 304
TOTAL NR (STATE SECTOR) 5475.1 3710.1 2941.1

PRIVATE SECTOR
PUNJAB
GOINDWAL SAHIB COAL P 500 500 0
SUB TOTAL (PUNJAB) 500 500 0

HP
BASPA HYDRO P 300 300 300 Commissioned
DHAMVARI SUNDA HYDRO P 70 70
SUB TOTAL (HP) P 370 370 300

UTTARANCHAL
VISHNU PRAYAG HYDRO P 400 400 400 Commissioned
SUB TOTAL (UTTARANCHAL) P 400 400 400
TOTAL NR PRIVATE SECTOR 1270 1270 700
TOTAL (NORTHERN REGION) 14335 12320.1 8321.1

* On best efforts being included in X Plan Capacity Addition

Page 56 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

WESTERN REGION

CENTRAL SECTOR
NPC
TARAPUR U3&4 NUCLEAR C 1080 1080 1080 Commissioned

NTPC
SIPAT I COAL C 1980 1320 0
SIPAT II COAL C 660 660 0
SIPAT ST II U-4,5 COAL C 660 . 1000 U 4 - Mar 07
U 5 - May 07
VINDHYACHAL III COAL C 1000 500 1000 U 9 - Comm.
U 10 - Feb 07
GANDHAR CCGT GAS C 1300 March-07
KAWAS CCGT GAS C 1300
RATNAGIRI GAS (JV) LNG C 1444 1444 1444 740 MW-Comm.
704 MW-Mar 07
SUB TOTAL (NTPC) 4300 2480 3444

NHPC
BAV-II HYDRO C 37 37 0

SUB TOTAL (NHPC) 37 37 0

NHDC
OMKARESHWAR HYDRO JV 520 520 0
INDIRA SAGAR HYDRO JV 1000 1000 1000 Commissioned

SUB TOTAL (NHDC) 1520 1520 1000


SUB TOTAL WR (CENTRAL SECTOR) 6937 5117 5524

STATE SECTOR

GUJARAT
SAR.SAROVAR-2 HYDRO S 1450 1450 1450 Commissioned
AKRIMOTA LIGNITE S 250 250 250 Commissioned
KLTPS EXTN(Panan) LIGNITE S 75 75 75 U 4 - July 07*
DHUVRAN GAS S 112 112 GT-Comm.
ST- Feb 07
DHUVRAN GAS S 106.62 106.62 106.62 Commissioned
SUB TOTAL (GUJARAT) 1993.6 1881.62 1993.62

MAHARASTRA
GHATGHAR PSTOR S 250 250 250 U 1-May 07
U2-July 07*
PARAS TPS EXT. U-I COAL S 250 250
PARLI TPP EX. ST-I COAL S 250 250 250 March-07
SUB TOTAL (MAHARASHTRA) 750 500 750

* On best efforts being included in X Plan Capacity Addition


MP
BIRSINGPUR EXT COAL S 500 500 500 U 5 - Feb 07
AMARKANTAK U-5 COAL S 210 0
BANSAGAR II HYDRO S 30 15 15 Commissioned
BANSAGAR III HYDRO S 20 20 20 Commissioned
MARIKHEDA HYDRO S 40 40 40 Commissioned

Page 57 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

BANSAGAR IV HYDRO S 20 20 20 Commissioned


SUB TOTAL (MP) 820 595 595

CHHATTISGARH
KORBA EAST EXT. COAL S 420 420 500 U 1 - Mar 07
U 2 - May 07
SUB TOTAL(CHHATTIS) 420 420 500
SUB TOTAL WR (STATE SECTOR) 3983.6 3396.62 3838.62

PRIVATE SECTOR

CHHATTISGARH
RAIGARH TPP U-1 COAL P 1000 250 June 07*
SUB TOTAL 1000 0 250
(CHHATISGARH) P

GUJARAT
JAMNAGAR REFRES P 500 500
AKHAKHOL CCPP BLK-I GAS P 365 365
SUB TOTAL (GUJARAT) P 865 500 365

MP
MAHESHWAR HYDRO P 400 400 0
BINA COAL P 578 578 0
SUB TOTAL (MP) P 978 978 0

SUB TOTAL WR (PRIVATE SECTOR) 2843 1478 615


TOTAL (WESTERN REGION) 13764 9991.62 9977.62

SOUTHERN REGION

CENTRAL SECTOR

NLC
NEYVELI EXT LIGNITE C 420 420 420 Commissioned
NEYVELI II EXP LIGNITE C 500 500
SUB TOTAL (NLC) 920 920 420

NPC
KUDANKULAM U-1 NUCLEAR C 1000 0
KAIGA U3 NUCLEAR C 220 220 220 March-07
MAPP UPGRADING NUCLEAR C 100 Commissioned
SUB TOTAL (NPC) 220 220 320

NTPC
SIMHADRI COAL C 1000 500 500 Commissioned
RAMAGUNDAM III COAL C 500 500 500 Commissioned

SUB TOTAL (NTPC) 1500 1000 1000


SUB TOTAL SR (CENTRAL SECTOR) 2640 2140 1740

STATE SECTOR
AP
RAYALSEMA-II COAL S 420 420 420 Commissioned
U 4 - Mar 07
SRISAILAM LBPH HYDRO S 450 450 450 Commissioned

Page 58 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

JURALA PRIYA HYDRO S 235 78.2 39 June 07*


SUB TOTAL (AP) 1105 948.2 909

KARNATAKA
RAICHUR U7 COAL S 210 210 210 Commissioned
ALMATI DAM HYDRO S 290 290 290 Commissioned
BELLARY COAL S 500 500 500 March-07
SUB TOTAL (KARNATAKA) 1000 1000 1000

KERALA
KUTTIYADI AUG. HYDRO S 100 100 0
SUB TOTAL (KERALA) 100 100 0

TAMILNADU
PYKARA ULTIMATE HYDRO S 150 150 150 Commissioned
PERUNGULAM GAS S 94 94 94 Commissioned
(VALUTHUR)
BHAWANI KATHALAI 1&2 HYDRO S 90 90 30
KUTRALAM GAS GAS S 100 100 100 Commissioned
SUB TOTAL (TAMILNADU) 434 434 374

* On best efforts being included in X Plan Capacity Addition


PONDICHERRY
KARAIKAL CCGT GAS S 100 100

SUB TOTAL SR (STATE 2739 2582.2 2283


SECTOR)

PRIVATE SECTOR

AP
PEDDAPURAM CCGT GAS P 220 78 78 Commissioned
VEMAGIRI-I GAS P 370 370 370 Commissioned
GAUTAMI GAS P 464 464 464 GTs- Feb 07
ST - Mar 07
RAMGUNDAM BPL COAL P 520 520
JEGRUPADU-EXT 1 GAS P 230 230 220 Commissioned
KONASEEMA GAS P 445 445 445 GT 1&2- Feb 07
ST - Mar 07
SUB TOTAL (AP) P 2249 2107 1577

KARNATAKA
HASSAN LNG P 189 189 0
KANIMINKE CCPP NAPHTHA P 108 108 0
SUB TOTAL (KARNATAKA) P 297 297 0

TAMILNADU
KURUPPUR GAS P 119.8 119.8 Commissioned
VALENTHARAVAI GAS P 52.8 52.8 Commissioned
NEYVELI ZERO LIGNITE P 250 250 250 Commissioned
SUB TOTAL (TAMILNADU) P 422.6 250 422.6

SUB TOTAL SR (PRIVATE SECTOR) 2968.6 2654 1999.6

TOTAL (SOUTHERN REGION) 8347.6 7376.2 6022.6

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Demand for Power and Generation Planning Working Group on Power for 11th Plan

EASTERN REGION

CENTRAL SECTOR

DVC
MEZIA-U4 COAL C 210 210 210 Commissioned
MEZIA-U5 COAL C 250 250 250 March-07
MEZIA-U6 COAL C 250 250 May 07*
MAITHON-RBC COAL JV 1000 1000
CHANDRAPURA U7&8 COAL C 500 500 0
SUB TOTAL (DVC) 2210 1960 710

NHPC
TEESTA V HYDRO C 510 510 0
PURLIA PSS PSTOR JV 900 900 225 March-07
TEESTA LOW DAM III HYDRO C 132 132
TEESTA LOW DAM IV HYDRO C 168 168
SUB TOTAL (NHPC) 1710 1710 225

NTPC
TALCHER-II COAL C 2000 2000 2000 Commissioned
NORTH K PURA COAL C 1980 660
KAHALGAON U-5,6&7 COAL C 1500 1500 U5 - Feb 07
U6 - Mar 07
U7 - Jun 07*
KAHALGAON II COAL C 1320 660
BARH COAL C 1980 660
SUB TOTAL (NTPC) 8780 3980 3500

SUB TOTAL ER (CENTRAL SECTOR) 12700 7650 4435

STATE SECTOR

JHARKHAND
TENUGHAT EXT COAL S 630 210 0
SUB TOTAL (JHAR) 630 210 0

ORISSA
BALIMELA II HYDRO S 150 150 150 March-07
SUB TOTAL (ORISSA) 150 150 150

WEST BENGAL
SAGARDIGHI-I COAL S 500 250 600 U 1 - Mar 07
U 2 - Apr 07
DPL EXTENSION COAL S 300 300 U 7 - Mar 07
SANTALDIH COAL S 250 250 June 07*
BAKRESHWAR 4,5 COAL S 420 420 210 U 4 - Jul 07
SUB TOTAL (WB) 1470 670 1360

SUB TOTAL ER (STATE SECTOR) 2250 1030 1510

* On best efforts being included in X Plan Capacity Addition

Page 60 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

PRIVATE SECTOR

BIHAR
BIHTA TPS COAL P 135 135 0
SUB TOTAL (BIHAR) P 135 135 0

JHARKHAND
JOJOBERA COAL P 120 120 120 Commissioned
SUB TOTAL (JHAR) P 120 120 120

SUB TOTAL ER (PRIVATE SECTOR) 255 255 120

TOTAL (EASTERN REGION) 15205 8935 6065

NORTH EASTERN REGION

NEEPCO
TUIRIAL HYDRO C 60 60
KOPILI II HYDRO C 25 25 25 Commissioned
TRIPURA GAS GAS C 500 500 0
SUB TOTAL (NEEPCO) 585 585 25

SUB TOTAL NER (CENTRAL SECTOR) 585 585 25

STATE SECTOR
ASSAM
KARBI LANGPI HYDRO S 100 100 100 Commissioned U2
- Feb 07
LAKWA WH GAS S 38 38
SUB TOTAL (ASSAM) 138 138 100

MEGHALAYA
MYNTDU(LISKA) HYDRO S 84 84
BYRNIHAT HFO S 24 24
MENDIPATHAR HFO S 24 24
SUB TOTAL (MEGHALAYA) 132 132 0

MIZORAM
BAIRABI (THERMAL) HFO S 22.92 22.92 22.92 Commissioned
BAIRABI HYDRO HYDRO S 80 80
SUB TOTAL (MIZORAM) 102.92 102.92 22.92

NAGALAND
DIMAPUR DGPP HFO S 22.9 0
SUB TOTAL (NAGALAND) 22.9 0 0
TRIPURA
BARMURA GT GAS S 21 21 21 Commissioned
ROKHIAU7 GAS S 21 21 42 Commissioned
SUB TOTAL(TRIPURA) 42 42 63

MANIPUR
MANIPUR DG DIESEL S 18 18 18 Commissioned

SUB TOTAL NER (STATE SECTOR) 432.92 432.92 203.92

TOTAL (NORTH EASTERN REGION) 1017.9 1017.92 228.92

Page 61 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

A&N ISLAND
BAMBOO FLAT DIESEL P 20 20 20 Commissioned
RANGIT BAY DIESEL S 5 5 6 Commissioned
SUB TOTAL(A&N) 25 25 26

TOTAL (ALL INDIA) 52694 39665.84 30641.24

Page 62 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.4
LIST OF PROJECTS LIKELY TO SLIP TO 11th
(Due to constrains on BHEL side)

Project Name Total Likely Slipping Likely date of


Capacity during to 11th Commissioning
10th
Hydro
Maneri Bhal-II 304 0 304 Sept.07-Dec.07
Ghatghar PSS 250 125 125 July-07
Jurala Priya 39 0 39 June 07
Balimela 150 0 150 May-07
Sub-total (Hy) 618
Thermal
GHTPP-II 500 250 250 May ,07
Sipat II 1000 500 500 May-07
Kahalgaon-II 1500 500 500 June-07
Korba East Ext. 500 250 250 May-07
Raigarh 250 0 250 May-07
Bakreshwer U 4&5 210 0 210 July-07
Mejia U-5&6 500 250 250 May2007
Rayalseema 420 210 210 May2007
Bellary 500 0 500 April2007
Sagardighi 600 300 300 April2007
Santaldih 250 0 250 June2007
Kutch Lignite TPS 75 0 75 July 2007
Dholpur 220 110 110 August2007
GH TPP –II 250 0 250 May 2007
Kahalgaon 1500 500 500 June 2007
Dabhol-II 704 704 704 June 2007
Sub-total (Th) 5109
Total (Hy+Th.) 5727

Page 63 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix 1.5

LIST OF UNITS DROPPED FROM 10th PLAN (41,110 MW)

THERMAL PROJECTS

Name of the Agency Name of the Project MW


Rajasthan (RRECL) Mathania ISCC GTs+ST 140
Jharkand Tenughat TPP II Unit 3 210
Pondicherry Karaikal CCPP GT+ST 100

Meghalaya Byrnihat DGPP 24


Meghalaya Mendipathar DGPP 24
Bihta TPPU-1 135
Bihar
Gujarat Jamnagar TPP U-!&2 2x250 500
Karnataka Hassan CCPP GT+ST 189
Karnataka Kaniminike CCPP GT+ST 107.6
M.P Bina TPP U-!&2 2x289 578
A.P Ramagundam TPP BPL U-!&2 520
SUB TOTAL THERMAL 2527.6

HYDRO PROJECTS

Name of the Agency NAME OF THE PROJECT MW


NHPC Bav II Maharashtra 37
NEEPCO Tuirial Mizoram 60
PIW/PSEB Shahpurkandi,Punjab 168
HPSEB Kashang – I 66
Dhamwari Power Dhamwari Sunda HEP 70
P&E Dept. Mizoram Bairabi Dam, Mizoram 80

SUB TOTAL HYDRO 481.0

GRAND TOTAL 3008.6

Page 64 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix 1.6

LIST OF THE THERMAL PROJECTS SLIPPING FROM 10th PLAN


(41,110 MW) AND INCLUDED IN 11TH PLAN (As per 30,641 MW)

THERMAL PROJECTS:-

Name of the Name of the Project IC (MW)


Agency
NTPC Barh STPP 660
Kahalgaon STPS Stage II Ph-I U-5 160

North Karanpura TPP U-1 660

Sipat STPP-I 2x660 U-1&2 1320

Dadri TPS 1x490 490

Sipat STPS II U-4 160

NLC Neyveli TPS II Exp 2*500 U-1&2 500

NLC Barsingsar lignite TPP U-1 250

DVC Maithon RBC TPP 4x250 U-1 to 4 1000

DVC Chandrapura TPS Extn. U-7&8 500

NEEPCO Monarchak CCPP GT+ST 500

UP. Anpara ( c ) TPS U-1 500


Assam ( Lakwa WH ST 38
ASEB)
West Bengal Bakreshwer TPS-II U-5 210
Punjab Goindwal TPP U-I&2 500
A.P. Jegurupadu CCPP EXT. GT 10
TOTAL 7458

Page 65 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix 1.7

LIST OF HYDRO PROJECTS SLIPPING FROM 10th PLAN (41,110 MW)


AND INCLUDED IN 11TH PLAN (As per 30,641 MW)

Name of the Agency NAME OF THE PROJECT IC(MW)


NHPC Sewa –II J&K 120
NJPC Rampur (J.V.) 400
THDC Tehri St-.II (PSS) 1000
NHPC WB Teesta Low Dam -IV 168 *
NHPC/ WBPDCL Purlia PSS 675
NHDC Omkaresswer MP 390
Meghalaya Myntdu (Leiska) – I 84
SMHPC Maheshwar 400
A.P. Jurala Priya 39
Tamil Nadu Bhawani Kathalai 60
THDC Koteshwer THDC 400
TVL Teesta Low Dam III (IPP) 132
J&K Baglihar 450
Kerala Kuutiyadi Aug. 100
Sikkim Teesta -V 510
NHDC Omkareshwar 130
TOTAL HYDRO 5058

* capacity changed to 160 MW

Page 66 of Chapter1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix 1.8
SUMMARY OF CAPACITY ADDITION PROPOSED DURING 11TH PLAN

TOTAL THERMAL BREAKUP


HYDRO NUCLEAR TOTAL
THERMAL
COAL LIGNITE GAS

A. PROJECTS UNDER CONSTRUCTION


CENTRAL SECTOR 7633 7200 6450 750 0 3160 17993
STATE SECTOR 2107 5852 5215 375 262 0 7959
PRIVATE SECTOR 2191 3202 2450 0 752 0 5393
ALL-INDIA 11931 16254 14115 1125 1014 3160 31345
B. PROJECTS WHERE LOA IS YET TO BE PLACED (COMMITTED PROJECTS)
CENTRAL SECTOR 2052 16610 15610 250 750 0 18662
STATE SECTOR 530 14500 14150 0 350 0 15030
PRIVATE SECTOR 1072 2760 2760 0 0 0 3832
ALL-INDIA 3654 33870 32520 250 1100 0 37524
TOTAL FEASIBLE AT PRESENT
CENTRAL SECTOR 9685 23810 22060 1000 750 3160 36655
STATE SECTOR 2637 20352 19365 375 612 0 22989
PRIVATE SECTOR 3263 5962 5210 0 752 0 9225
ALL-INDIA 15585 50124 46635 1375 2114 3160 68869
C. PROJECTS WITH BEST EFFORTS
CENTRAL SECTOR 0 4190 4190 0 0 0 4190
STATE SECTOR 0 3300 2300 1000 0 0 3300
PRIVATE SECTOR 0 4055 4055 0 0 0 4055
ALL-INDIA 0 11545 10545 1000 0 0 11545
TOTAL SHELF OF PROJECTS
CENTRAL SECTOR 9685 28000 26250 1000 750 3160 40845
STATE SECTOR 2637 23652 21665 1375 612 0 26289
PRIVATE SECTOR 3263 10017 9265 0 752 0 13280
ALL-INDIA 15585 61669 57180 2375 2114 3160 80414

Page 67 of Chapter 1
Appendix 1.8 (contd.)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN --HYDRO
ULTIMAT EQUIPMENT
BENEFITS ORDER
SECT E 2007- 2008- 2009- 2010- 2011-
Sl.No. PLANT NAME STATE AGENCY TYPE IN 11TH LOA DATE AGENCY
OR CAPACIT 08 09 10 11 12
PLAN
Y (MW)

PROJECTS UNDER CONSTRUCTION


1 PARBATI - II HP NHPC C 800 ROR 800 400 400 SEPT,02 DEC,02 BHEL
2 CHAMERA-III HP NHPC C 231 ROR 231 231 SEP, 05 JAN,07 ALSTOM
3 PARBATI - III HP NHPC C 520 ROR 520 520 SEP,05 DEC,06 BHEL
4 SEWA-II J&K NHPC C 120 ROR 120 120 SEPT, 03 JUNE,06 BHEL
5 URI-II J&K NHPC C 240 ROR 240 240 SEPT,05 DEC,06 ALSTOM
6 OMKARESHWAR MP NHDC C 520 ROR 520 520 JUNE, 03 JUNE,03 SIEMENS
7 TEESTA V SIK NHPC C 510 ROR 510 510 DONE NOV,01 MITSUI
8 TEESTA LOW DAM-III WB NHPC C 132 ROR 132 132 OCT,03 JULY,04 VA TECH
9 TEESTA LOW DAM-IV WB NHPC C 160 ROR 160 160 DEC 05. MAR, 07
10 SUBANSIRI LOWER AR.PR. NHPC C 2000 STO 2000 2000 DEC,03 FEB,05 ALSTOM
11 KOTESHWAR UKND THDC C 400 STO 400 400 AUG,02 MAR,03 BHEL
12 KAMENG AR.PR. NEEPCO C 600 STO 600 600 DEC,04 DEC,04 BHEL
13 KOL DAM HP NTPC C 800 STO 800 600 200 JUNE, 03 JULY,04 BHEL
14 LOHARI NAGPALA UKND NTPC C 600 ROR 600 600 JULY,06 SEP.07
15 UHL - III HP HPJVVNL S 100 ROR 100 100 SEPT.05 FEB,07
16 BAGLIHAR-I J&K JKPDC S 450 ROR 450 450 DONE JULY,99 SIEMENS
17 JURALA PRIYADARSHNI AP APGENCO S 234 STO 195 195 April, 04 MAR,04 CEMC, CHINA
18 NAGARJUNA SAGAR TR AP APGENCO S 50 STO 50 50 MAY, 05 MAY,06 BHEL
19 VARAHI EXTN. KAR KPCL S 230 ROR 230 230 NOV, 05 MAY,06 VA TECH
20 ATHIRAPALLI KERL KSEB S 163 ROR 163 163 MAY,05/ DEC,06 MAY,05 BHEL
21 KUTAYADI EXT. KERL KSEB S 100 ROR 100 100 AWARDED OCT,03 BHEL
22 BHAWANI BARRAGE II & III TN TNEB S 60 ROR 60 60 AWARDED NOV,06
23 PURLIA PSS WB WBSEB S 900 PSS 675 675 JUNE, 01 JULY,2000 MITSUI
24 MYNTDU St-I MEGH MeSEB S 84 STO 84 84 MAR,04 NOV,05 VA TECH
25 BUDHIL HP LANCO IPP P 70 ROR 70 70 AWARDED JULY,06 DONGFANF ELC.

26 ALLAIN DUHANGAN HP RSWML P 192 ROR 192 192 NOV, 05 NOV,05 BHEL
27 MALANA II HP EVREST PC P 100 ROR 100 100 JAN, 06 MAR,07
28 KARCHAM WANGTOO HP JPKHCL P 1000 ROR 1000 1000 AWARDED MAR,07
29 SRINAGAR UKND GVK P 330 ROR 330 330 MAR, 07 2007-08
30 MAHESHWAR MP IPP P 400 STO 400 400 AWARDED 2007-08
31 CHUJACHEN SIKKIM GATI P 99 ROR 99 99 AWARDED DEC,06 ALSTOM
SUB-TOTAL ( UNDER CONSTRUCTION) 12195 11931 2450 2328 1909 3314 1930
C: Central Sector; S: State Sector; P: Private Sector; ROR : Run of River; STO: Storage; PSS: Pumped Storage

Page 68 of Chapter 1
Appendix 1.8 (contd.)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN --HYDRO
ULTIMAT EQUIPMENT
BENEFITS ORDER
SECT E 2007- 2008- 2009- 2010- 2011-
Sl.No. PLANT NAME STATE AGENCY TYPE IN 11TH LOA DATE AGENCY
OR CAPACIT 08 09 10 11 12
PLAN
Y (MW)

PROJECTS WHERE LOA IS YET TO BE PLACED


1 RAMPUR HP SJVNL C 412 ROR 412 412 FEB, 07
2 TEHRI PSS UKND THDC C 1000 PSS 1000 500 500 JULY, 07 AUG,07
3 TAPOVAN VISHNUGARH UKND NTPC C 520 ROR 520 520 DEC,06 2007-08
4 VYASI UKND NHPC C 120 STO 120 120 JUNE,07 2008-09
5 SAWARA KUDDU HP PVC S 110 ROR 110 110 JUNE, 07 2007-08
6 PALLIVASAL KERL KSEB S 60 ROR 60 60 MAR, 07 2007-08
7 MANKULAM KERL KSEB S 40 STO 40 40 MAR, 07 2007-08
8 THOTTIAR KERL KSEB S 40 ROR 40 40 MAR, 07 2007-08
9 LOWER JURALA AP APGENCO S 240 STO 240 240 MAY, 07 2008-09
10 NEW UMTRU MEGH MeSEB S 40 ROR 40 40 MAR,07 2007-08
11 LAMBADUG HP IPP P 25 ROR 25 25 MAR, 07 2008-09
12 SORANG HP SORAND PC P 100 ROR 100 100 MAR, 07 2008-09
13 TIDONG-I HP PCP/IPP P 100 ROR 100 100 JULY, 07 2007-08
14 TANGU ROMAI HP PCP/IPP P 50 ROR 50 50 JULY, 07 2008-09
15 UBDC- III PUN MALANA POWER P 75 ROR 75 75 JUNE,07 2007-08
16 SADAMANDER SIK GATI P 71 ROR 71 71 JUNE, 07 2007-08
17 BHASMEY SIK GATI P 51 ROR 51 51 SEP, 07 2007-08
18 TEESTA III SIK TEESTA URJA P 1200 ROR 600 600 MAR, 07 FEB,07
SUB-TOTAL ( COMMITTED) 4254 3654 0 0 146 1016 2492
TOTAL FEASIBLE HYDRO PROJECTS 16449 15585 2450 2328 2055 4330 4422
C: Central Sector; S: State Sector; P: Private Sector; ROR : Run of River; STO: Storage; PSS: Pumped Storage
Note: Orders in respect of Rampur HEP, 412 MW & Tapovan Vishnugarh HEP, 520 MW has been recently placed
11931 2450 2328 1909 3314 1930
STATUS WISE
3654 0 0 146 1016 2492
DETAILS
15585 2450 2328 2055 4330 4422

SUMMARY
8981 1580 1244 1205 1390 3562
4929 195 1084 850 2440 360
TYPE WISE DETAILS
1675 675 0 0 500 500
15585 2450 2328 2055 4330 4422

Page 69 of Chapter 1
Appendix 1.8 (contd)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN --THERMAL
ULTIMATE BENEFITS COAL COAL LOA DATE
SECTO
Sl.No PLANT NAME STATE AGENCY CAPACITY TYPE IN 11TH 2007-08 2008-09 2009-10 2010-11 2011-12 LINKAGE COMPA (E&M AGENCY
R (MW) EQPT.)
PLAN STATUS NY

PROJECTS UNDER CONSTRUCTION


1 DADRI EXT(U-5) UP NTPC C 490 LC 490 490 LINKAGE CCL JUL,06 BHEL
2 SIPAT I CHG NTPC C 1980 PH 1980 660 1320 LINKAGE SECL APR,04 KOREA+ RUSSIA
3 BHILAI JV CHG NTPC C 500 PH 500 500 LINKAGE SECL MAR, 05 BHEL
4 KORBA III CHG NTPC C 500 PH 500 500 BLOCK MAR, 06 BHEL
5 BARH-I BIH NTPC C 1980 PH 1980 660 660 660 LINKAGE CCL MAR, 05 RUSSIA
6 FARAKKA STAGE-III WB NTPC C 500 PH 500 500 LINKAGE ECL OCT,06 BHEL
7 CHANDRAPUR JHAR DVC C 500 PH 500 500 LINKAGE BCCL JUN,06 BHEL
8 BARSINGSAR LIG RAJ NLC C 250 PH-LIG 250 250 LIGNITE DEC,05 BHEL
9 NEYVELI - II LIG TN NLC C 500 PH-LIG 500 500 LIGNITE AUG,05 BHEL
10 YAMUNA NAGAR HAR HPGCL S 600 LC 600 600 LINKAGE CCL AUG,05 CHINA
11 GIRAL U-2 RAJ RRVUNL S 125 PH-LIG 125 125 LIGNITE NOV,05 BHEL
12 CHABRA TPS RAJ RRVUNL S 500 LC 500 500 LINKAGE SECL MAR,06 BHEL
13 KOTA U7 RAJ RRVUNL S 195 LC 195 195 LINKAGE SECL JUN, 06 BHEL
14 SURATGARH EXT RAJ RRVUNL S 250 LC 250 250 LINKAGE SECL AUG,06 BHEL
15 DHOLPUR RAJ RRVUNL S 330 GAS/LNG 110 110 JUN,04 BHEL
16 PARICHHA EXT UP UPRVUNL S 500 LC 500 500 LINKAGE BCCL JUN,06 BHEL
17 HARDUAGANJ UP UPRVUNL S 500 LC 500 500 LINKAGE CCL JUN,06 BHEL
18 SURAT LIGNITE EXT GUJ GIPCL S 250 PH-LIG 250 250 LIGNITE MAR,06 BHEL
19 AMARKANTAK MP MPGENCO S 210 LC 210 210 LINKAGE SECL JUN, 04 BHEL
20 PARLI EXT U-2 MAH MAHA GEN S 250 LC 250 250 LINKAGE MCL AUG, 06 BHEL
21 PARAS EXT U-2 MAH MAHA GEN S 250 LC 250 250 LINKAGE MCL AUG, 06 BHEL
22 KAKTIYA AP APGENCO S 500 LC 500 500 LINKAGE SECL JUL, 05 BHEL
23 VIJAYWADA TPP AP APGENCO S 500 LC 500 500 LINKAGE MCL JUL, 05 BHEL
24 BELLARY TPS U-2 KAR KPCL S 500 LC 500 500 LINKAGE REQUIRED AUG, 06 BHEL
25 RAICHUR U 8 KAR KPCL S 250 LC 250 250 LINKAGE MCL SEP, 06 BHEL
26 VALUTHUR EXT TN TNEB S 92 GAS/LNG 92 92.2 MAY, 06 GEA ENERGY

27 BAKRESHWAR U-5 WB WBPDCL S 210 LC 210 210 LINKAGE ECL NOV.04 BHEL+JAPAN
28 LAKWA WH ASM ASGENCO S 37.2 GAS/LNG 37.2 37.2 MAR, 06 BHEL
29 DIMAPUR DG NAG ELECT.DEPT. S 23 GAS/LNG 23 23 JUL, 03 BHEL
30 RAIGARH PH II CHG JIN. POWER P 750 PH 750 750 BLOCK JUN, 04 BHEL
31 PATHADI (LANCO) U1 CHG LANCO-IPP P 300 PH 300 300 LINKAGE SECL JUL, 05 CHINA
32 PATHADI (LANCO) U2 CHG LANCO-IPP P 300 PH 300 300 LINKAGE SECL JUL, 05 CHINA
33 SUGEN TORRENT GUJ TORRENT P 1128 GAS/LNG 752 752 JUN, 05 SIEMENS
34 TROMBAY TPS MAH TATAPOWER P 250 LC 250 250 IMPORTED COAL JUL, 06 BHEL
35 TORANGALLU KAR JINDAL P 600 LC 600 300 300 IMPORTED COAL JUN,06 CHINA
36 BUDGE-BUDGE EXT WB CESC P 250 LC 250 250 BLOCK REQUIREDSEP, 06 BHEL
SUB-TOTAL ( UNDER CONSTRUCTION) 16850 16254 4407 6387 4500 960 0
C: Central Sector; S: State Sector; P: Private Sector; LC: Load Center; PH: Pit Head; PH-LIG: Lignite based

Page 70 of Chapter 1
Appendix 1.8 (contd)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN --THERMAL
ULTIMATE BENEFITS COAL COAL LOA DATE
SECTO
Sl.No PLANT NAME STATE AGENCY CAPACITY TYPE IN 11TH 2007-08 2008-09 2009-10 2010-11 2011-12 LINKAGE COMPA (E&M AGENCY
R (MW) EQPT.)
PLAN STATUS NY

PROJECTS WHERE LOA IS YET TO BE PLACED


1 BADARPUR-X DELHI NTPC C 980 LC 980 490 490 LINKAGE MCL FEB,07
2 DADRI EXT(U-6) UP NTPC C 490 LC 490 490 LINKAGE CCL DEC, 06 BHEL
3 TPS for DELHI/JHAJJAR HAR NTPC C 1500 LC 1500 500 1000 LINKAGE MCL FEB,07
4 MAUDA MAH NTPC C 1000 PH 1000 1000 LINKAGE MCL NOV,07
5 SIMHADRI-EXT AP NTPC C 1000 COASTAL 1000 500 500 LINKAGE MCL JUN,07
6 ENNORE-JV TN NTPC C 1000 COASTAL 1000 500 500 LINKAGE MCL JUN,07
7 BARH II BIH NTPC C 1320 PH 1320 1320 BLOCK MAY,07
8 NABINAGAR BIH NTPC C 1000 PH 750 250 500 LINKAGE CCL JAN,08
9 NORTH K PURA JHAR NTPC C 1320 PH 1320 1320 LINKAGE CCL OCT,07
10 BONGAIGAON ASM NTPC C 750 LC 750 500 250 LINKAGE NEC/ECL AUG,07
11 MEJIA PH II (DELHI) WB DVC C 1000 PH 1000 500 500 BLOCK DEC, 06. BHEL
BOKARO REPLACEMENT
12 JHAR DVC C 500 PH 500 500 LINKAGE CCL FEB,07
(DELHI)
13 KODERMA U1&2 (DELHI) JHAR DVC C 1000 PH 1000 1000 LINKAGE MCL FEB,07
14 DURGAPUR STEEL WB DVC C 1000 PH 1000 500 500 LINKAGE ECL AUG,07
15 MAITHAN RBC JHAR DVC C 1000 PH 1000 500 500 LINKAGE BCCL FEB,07
16 BARSINGSAR EXT RAJ NLC C 250 PH-LIG 250 250 LIGNITE JUL,08
17 TUTICORIN JV TN NLC C 1000 COASTAL 1000 500 500 LINKAGE MCL DEC,07
18 TRIPURA GAS ILFS TRI ONGC C 750 GAS/LNG 750 750 JUN,07
19 HISSAR TPS I HAR HPGCL S 500 LC 500 250 250 LINKAGE MCL MAR,07
20 HISSAR TPS II HAR HPGCL S 500 LC 500 500 LINKAGE MCL JUN,08
21 TALWANDI SABO PUN PSEB S 1500 LC 500 500 LINKAGE REQUIRED JAN,08
22 KALISINDH TPS RAJ RRVUNL S 1000 LC 500 500 BLOCK REQUIRED JAN,08
23 ANPARA-D UP UPRVUNL S 1000 PH 1000 1000 LINKAGE REQUIRED JAN,08
24 OBRA REP UP UPRVUNL S 1000 PH 500 500 LINKAGE REQUIRED JAN,08
25 KORBA WEST EXT CHG CSEB S 600 PH 600 600 LINKAGE SECL FEB,07
26 UTRAN GUJ GSECL S 350 GAS/LNG 350 350 FEB,07
27 SIKKA EXT GUJ GSECL S 500 COASTAL 500 500 IMPORTED COAL OCT,07
28 UKAI EXT GUJ GSECL S 500 LC 500 500 LINKAGE REQUIRED JAN,08
29 KHAPER KHEDA EX MAH MAHA GEN S 500 LC 500 500 LINKAGE MCL FEB,07
30 BHUSAWAL MAH MAHA GEN S 1000 LC 1000 1000 LINKAGE MCL JUN,07
31 KORADI REP& OTHERS MAH MAHA GEN S 585 LC 500 500 LINKAGE JUN,07
32 KORADI EXT MAH MAHA GEN S 1000 LC 1000 1000 LINKAGE REQUIRED JAN,08
33 CHANDRAPUR MAH MAHA GEN S 500 PH 500 500 BLOCK FEB,07
34 MALWA MP MPGENCO S 1000 LC 1000 1000 LINKAGE SECL JUN,07
35 SATPURA EXT MP MPGENCO S 500 LC 500 500 LINKAGE REQUIRED JAN,08
36 KOTHAGUDEM ST-V AP APGENCO S 500 PH 500 500 LINKAGE MCL FEB,07

Page 71 of Chapter 1
Appendix 1.8 (contd)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN --THERMAL
ULTIMATE BENEFITS COAL COAL LOA DATE
SECTO
Sl.No PLANT NAME STATE AGENCY CAPACITY TYPE IN 11TH 2007-08 2008-09 2009-10 2010-11 2011-12 LINKAGE COMPA (E&M AGENCY
R (MW) EQPT.)
PLAN STATUS NY

37 KRISHNAPATNAM AP APGENCO S 1600 COASTAL 800 800 LINKAGE MCL DEC,07


38 KAKATIYA EXT AP APGENCO S 500 LC 500 500 BLOCK JAN,08
39 NORTH CHENNAI EXT TN TNEB S 500 LC 500 500 LINKAGE MCL AUG,07
40 METTUR EXT TN TNEB S 500 LC 500 500 LINKAGE MCL MAR,07
41 SAGARDIGHI EXT WB WBPDCL S 1000 LC 1000 500 500 BLOCK REQUIRED DEC,07
42 SANTHALDIH EXT (U 6) WB WBPDCL S 250 LC 250 250 BLOCK REQUIRED FEB,07
43 GOINDWAL SAHIB PUN GVK P 600 LC 600 600 BLOCK JAN,08
44 ANPARA-C UP LANCO P 1000 PH 1000 500 500 LINKAGE NCL NOV,07
45 BARA UP IPP P 1000 LC 500 500 BLOCK REQUIRED JAN,08
46 ULTRA MEGA SASAN MP LANCO P 3960 LC 660 660 BLOCK JAN,08
SUB-TOTAL ( COMMITTED) 40805 33870 0 350 5830 10740 16950
TOTAL FEASIBLE THERMAL PROJECTS 57655 50124 4407 6737 10330 11700 16950
C: Central Sector; S: State Sector; P: Private Sector; LC: Load Center; PH: Pit Head; PH-LIG: Lignite based; COASTAL : Coastal Stations
Note: Orders in respect of Dadri Ext (U 6), Mezia PH II ,Bhusawal,Khaperkheda Ext,Kothagudem and Hissar has been recently placed
UNDER
CONSTRUCTION
16254 4407 6387 4500 960 0
STATUS WISE LOA TO BE PLACED
33870 0 350 5830 10740 16950
DETAILS
TOTAL FEASIBLE 50124 4407 6737 10330 11700 16950
660/800 8060 660 1980 660 660 4100
500 26460 0 1000 5470 8990 11000
300 3000 600 300 1200 300 600
UNIT SIZE GROUP 210/250 9615 2170 2445 2250 1500 1250
WISE DETAILS 110/125 875 0 625 0 250 0
Gas 2114 977 387 750 0 0
TOTAL FEASIBLE 50124 4407 6737 10330 11700 16950
SUMMARY OF THERMAL
PH 20300 2410 2280 4560 4410 6640
CAPACITY ADDITION TYPE WISE LC 22035 1020 2945 5020 5040 8010
DETAILS OF COAL COASTAL 4300 0 0 0 2000 2300
PLANTS
TOTAL COAL 46635 3430 5225 9580 11450 16950
LINKAGE AVAILABLE 32455 2680 4975 7280 9150 8370
LINKAGE REQUIRED 4500 0 0 500 0 4000
BLOCK ALLOTED 5830 750 0 1000 1000 3080
STATUS OF COAL
AVAILABILITY BLOCK REQUIRED 2500 0 0 500 500 1500

IMPORTED COAL 1350 0 250 300 800 0

TOTAL COAL 46635 3430 5225 9580 11450 16950

Page 72 of Chapter 1
Appendix 1.8 (contd)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN --THERMAL
ULTIMATE BENEFITS COAL COAL LOA DATE
SECTO
Sl.No PLANT NAME STATE AGENCY CAPACITY TYPE IN 11TH 2007-08 2008-09 2009-10 2010-11 2011-12 LINKAGE COMPA (E&M AGENCY
R (MW) EQPT.)
PLAN STATUS NY

PROJECTS UNDER BEST EFFORTS


1 RIHAND-X UP NTPC C 500 PH 500 500 LINKAGE REQUIRED DEC,07
2 NORTH K PURA JHAR NTPC C 660 PH 660 660 LINKAGE CCL AUG,07
3 INTEGRATED PROJECT DARIPALI ORS NTPC C 3200 PH 800 800 BLOCK SEP,07
4 NABINAGAR BIH NTPC C 1000 PH 250 250 LINKAGE CCLJAN,08
5 BOKARO STEEL JHAR DVC C 500 PH 500 500 LINKAGE REQUIRED JUN,07
6 RAGHUNATH PUR WB DVC C 1000 PH 1000 1000 BLOCK REQUIREDDEC,07
7 MARGHERITA ASSAM NEEPCO C 480 PH 480 480 LINKAGE REQUIRED JAN, 08
8 CHHABRA II RAJ RRVUNL S 500 LC 500 500 BLOCK REQUIREDJAN, 08
9 GUJARAT LIGNITE GUJARAT NLC JV S 1000 PH-LIG 1000 1000 LIGNITE JAN, 08
10 DPL TPS U7A WB WBPDCL S 300 LC 300 300 BLOCK REQUIREDAUG,07
11 DPL TPS U8 WB WBPDCL S 500 LC 500 500 BLOCK REQUIREDOCT,07
12 BAKRESHWAR EXT WB WBPDCL S 500 LC 500 500 BLOCK REQUIREDJAN,09
13 MUZAFFARPUR EXT BIHAR SHALI POW S 500 LC 500 500 LINKAGE REQUIRED JAN, 08
14 ROSA UP OSA POWE P 600 PH 600 600 LINKAGE REQUIRED JAN, 08
15 BHAIYATHAN CHG IPP P 1600 PH 800 800 BLOCK JUN,07
16 LANCO NAGARJUNA KAR NPCL-IPP P 1015 COASTAL 1015 1015 IMPORTED COAL FEB, 07
17 HALDIA PH I WB CESC P 600 LC 600 600 LINKAGE REQUIRED SEP, 08
NAVABH
18 MALAXMI ORISSA P 1040 PH 1040 1040 LINKAGE (2.404 MT); JAN,08
ARAT
SUB-TOTAL ( BEST EFFORTS) 15495 11545 0 0 0 0 11545
ADDITIONAL PROJECT IDENTIFIED BY STATES
1 Yamuna Nagar EXT HAR S 300 300 Linkage Required JUN,07
2 Jhajjar TPS (Case 2) HAR P 1200 1200 Linkage Required
3 Shankargarh UP P 1000 1000 Block Required
4 Dopaha UP P 1000 1000 Block Required
5 Chhabra III RAJ P 500 500 Block Required
6 Kawai RAJ P 1000 1000 Block Required
7 Dopawe MAH P 1600 1600 Imported Coal
8 Marwa TPS CHG S 1500 1500 Block Available SEP,07
9 Korba South CHG S 1000 1000 Linkage Required
10 Godhna CHG S 2000 2000 Linkage Required
11 Ennore EXP TN S 500 500 Linkage Required
12 Tuticorin Ext TN S 1000 1000 Linkage Required DEC,07
13 Cuddalore TN P 2000 1000 Imported Coal
14 Kudgi KAR S 1000 1000 Block Requitred DEC,07
15 Barauni TPS BIH S 500 500 Linkage Required
SUB-TOTAL ( ADDITIONAL IDENTIFIED) 16100 15100 0 0 0 0 0
C: Central Sector; S: State Sector; P: Private Sector; LC: Load Center; PH: Pit Head; PH-LIG: Lignite based; COASTAL : Coastal Stations

Page 73 of Chapter 1
Appendix 1.8 (contd.)
LIST OF PROJECTS PROPOSED FOR LIKELY BENEFITS DURING 11TH PLAN -NUCLEAR

ULTIMATE BENEFITS IN
NO.OF UNIT
Sl.No. PLANT NAME STATE AGENCY SECTOR CAPACITY TYPE 11th PLAN 2007-08 2008-09 2009-10 2010-11 2011-12
UNITS SIZE
(MW) (2007-12)

PROJECTS UNDER CONSTRUCTION


1 RAPP U5&6 RAJ NPC C 2 220 440 PHWR 440 220 220
2 KUDANKULAM U 1,2 TN NPC C 2 1000 2000 LWR 2000 1000 1000
3 PFBR(Kalapakkam) TN NPC C 1 500 500 FBR 500 500
4 KAIGA U-4 KAR NPC C 2 220 440 PHWR 220 220
TOTAL NUCLEAR(UNDER CONSTRUCTION) 7 3380 3160 1440 1220 0 500 0
C: Central Sector
UNDER CONSTRUCTION 11931 2450 2328 1909 3314 1930
HYDRO LOA TO BE PLACED 3654 0 0 146 1016 2492
FEASIBLE 15585 2450 2328 2055 4330 4422

UNDER CONSTRUCTION 16254 4407 6387 4500 960 0


THERMAL LOA TO BE PLACED 33870 0 350 5830 10740 16950
TYPE WISE STATUS WISE FEASIBLE 50124 4407 6737 10330 11700 16950
SUMMARY
NUCLEAR UNDER CONSTRUCTION 3160 1440 1220 0 500 0

UNDER CONSTRUCTION 31345 8297 9935 6409 4774 1930


TOTAL LOA TO BE PLACED 37524 0 350 5976 11756 19442
TOTAL FEASIBLE 68869 8297 10285 12385 16530 21372

Page 74 of Chapter 1
Appendix 1.9

YEAR-WISE COAL REQUIREMENT FOR 11th PLAN (tentative)-Utilities


2006-07 11th Plan details
INSTALLED CAPACITY(MW) Programme 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
EXISTING CAPACITY 63490 63490 63490 63490 63490 63490 63490
PLF(%) 76.0 76.0 77.0 77.0 77.0 77.0 77.0
GENERATION 422.7 422.7 428.3 428.3 428.3 428.3 428.3
ADDITIONS 8950 3430 5225 9580 11450 16950 0
RETIREMENTS 0 0 0 0 527.5 259
PLF(%) 85 85 85 85 85 85 85
GENERATION 26.7 76.9 107.7 159.6 232.6 336.2 413.9
TOTAL INSTALLED CAPACITY 72440 75870 81095 90675 101597.5 118816 118816
TOTAL GENERATION(BU) 449.3 499.5 536.0 587.9 660.8 764.5 842.1
COAL REQUIREMENT (Million Tons) 319.0 349.7 375.2 411.5 462.6 535.1 589.5

TRANSIT LOSS @ 1% 3.2 3.5 3.8 4.1 4.6 5.4 5.9


CUMULATIVE STOCK 17.7 19.4 20.8 22.8 25.6 29.6 32.6
ADDITIONAL STOCK 7.2 1.7 1.4 2.0 2.8 4.0 3.0

TOTAL COAL REQUIREMENT 329.4 354.9 380.4 417.6 470.0 544.5 598.4
Note:
1.Total installed capacity of coal fired stations at the end of 2011-12 = 1,18,816 MW
2. Requirement of coal in the year 2011-12 for the coal fired capacity indicated above = 545 MT
3.The above assumes only 40% generation from the new capacity addition during the year .
4.The requirement of coal for the total installed capacity of 1,18,816 MW at the end of 11th plan ,in the year first year of 12th plan i.e.2012-
13 would be about 600 MT
5. Any new capacity addition during the year 2012-13 shall need additional coal

Page 75 of Chapter 1
Appendix 1.10

Shelf of Projects for Likely benefits during 12th plan

Best Effort 12th Plan


Total Shelf of
Type Projects of Projects
Projects (MW)
11th plan (MW)
Hydro 0 40658 40658
Thermal 11545 102473 114018
Coal 10545 83640 94185
Lignite 1000 3250 4250
Gas/LNG 15583 15583
Nuclear 12800 12800
Total 11545 155931 167476

Page 76 of Chapter 1
Appendix 1.10 (contd)

SHELF OF HYDRO PROJECTS FOR LIKELY BENEFITS DURING 12 th PLAN

Likely
Benefit in
Sl. No Name of scheme State Agency Sector Type IC (MW)
12th Plan
(MW)
1 Bharmour HP IPP P ROR 45 45
2 Bajoli Holi HP IPP P ROR 180 180
3 Chirgaon (Majhgaon) HP HPSEB S ROR 46 46
4 Dhaula Sidh HP IPP P ROR 40 40
5 Dhamvari Sunda HP HPSEB S ROR 70 70
6 Harsar HP IPP P ROR 60 60
7 Jhangi Thopan HP IPP P ROR 480 480
8 Kutehr HP IPP P ROR 260 260
9 Kashang-II HP HPSEB S ROR 60 60
10 Luhri HP SJVNL C ROR 770 770
11 Pudital Lassa HP IPP P STO 36 36
12 Renuka Dam HP HPSEB S STO 40 40
13 Sainj HP HPSEB S ROR 100 100
14 Tidong-II HP IPP P ROR 70 70
15 Thopan Powari HP IPP P ROR 480 480
16 Kashang - I & III HP HPJVVNL S ROR 195 195
17 Shongtong Karcham HP HPSEB S ROR 402 402
18 Nimoo Bazgo J&K NHPC C ROR 45 45
19 Chutak J&K NHPC C ROR 44 44
20 Baglihar-II J&K PDC S ROR 450 450
21 Kiru J&K To be decided To be decided ROR 600 600
22 Kishan Ganga J&K NHPC C STO 330 330
23 Kawar J&K To be decided To be decided ROR 320 320
24 Parnai J&K PDC S ROR 37.5 37.5
25 Pakhal Dul J&K NHPC C STO 1000 1000
26 Ratle J&K To be decided To be decided ROR 560 560
27 Sawalkot J&K PDC S ROR 1200 1200
28 Kotli Bhel I A UKND NHPC C ROR 195 195
29 Kotli Bhel I B UKND NHPC C ROR 320 320
30 Kotli Bhel II UKND NHPC C ROR 530 530
31 Lata Tapovan UKND NTPC C ROR 171 171
32 Vishnugad Pipalkoti UKND THDC C ROR 444 444
33 Arkot Tiuni UKND UJVNL S ROR 70 70
34 Alaknanda (Badrinath) UKND IPP P ROR 140 140
35 Bogadiyar Sirkari Bhyal UKND IPP P ROR 170 170
36 Mapang Bogudiyar UKND IPP P ROR 200 200
37 Bowala Nand Prayag UKND UJVNL S ROR 132 132
38 Devsari Dam UKND SJVNL C STO 690 690
39 Hanol Tiuni UKND IPP P ROR 42 42
40 Jakhol Sankari UKND SJVNL C ROR 33 33
41 Jelam Tamak UKND THDC C ROR 60 60
42 Lakhwar UKND NHPC C STO 300 300
43 Maleri Jhelam UKND THDC C ROR 55 55
44 Mori Hanol UKND IPP P ROR 60 60
45 Nand Prayag Lingasu UKND UJVNL S ROR 141 141
46 Naitwar Mori (Dewra Mori) UKND SJVNL C ROR 33 33
47 Pala Maneri UKND UJVNL S ROR 480 480
48 Rupsiyabagar Khasiyabara UKND NTPC C ROR 260 260
49 Sirkari Bhyal Rupsiabagar UKND UJVNL S ROR 210 210
50 Singoli Bhatwari UKND IPP P ROR 60 60

Page 77 of Chapter 1
Appendix 1.10 (contd)

SHELF OF HYDRO PROJECTS FOR LIKELY BENEFITS DURING 12 th PLAN

Likely
Benefit in
Sl. No Name of scheme State Agency Sector Type IC (MW)
12th Plan
(MW)
51 Tamak Lata UKND UJVNL S ROR 280 280
52 Taluka Sankri UKND UJVNL S ROR 140 140
53 Tuini Plasu UKND UJVNL S ROR 42 42
54 Dhauli Ganga Intermediate UKND NHPC C ROR 210 210
55 Gauri Ganga St III-A UKND NHPC C ROR 120 120
56 Shahpur Kandi PUN PSEB S STO 168 168
57 Hoshangabad MP NHDC C ROR 60 60
58 Handia MP NHDC C ROR 51 51
59 Borus MP NHDC C ROR 55 55
60 Matnar CHG CSEB S ROR 60 60
61 Dummugudem AP APID S STO 320 320
62 Pollavaram MPP AP APID S STO 960 960
63 Chinnar KERL KSEB S ROR 28 28
64 Achenkovil KERL KSEB S STO 30 30
65 Kundah PSS TN TNEB S PSS 500 500
66 Gundia KAR KPCL S ROR 400 400
67 Ramam St-III WB NTPC C ROR 120 120
68 Ramam St-I WB WBSEB S ROR 36 36
69 Panan SIK IPP P ROR 280 280
70 Dikchu SIK IPP P ROR 96 96
71 Rolep SIK IPP P ROR 60 60
72 Rangit-II SIK IPP P ROR 60 60
73 Rangit-IV SIK IPP P ROR 120 120
74 Lachen SIK NHPC C ROR 210 210
75 Rangyong SIK IPP P ROR 80 80
76 Rukel SIK IPP P ROR 33 33
77 Rongnichu SIK IPP P STO 96 96
78 Teesta St.-I SIK IPP P ROR 280 280
79 Teesta St.-II SIK IPP P ROR 480 480
80 Teesta St.-IV SIK NHPC C ROR 495 495
81 Teesta-VI SIK IPP P ROR 500 500
82 Teesta-III SIK Teesta Urja P ROR 1200 600
83 Pare Ar Pr NEEPCO C STO 110 110
84 Siang Middle (Siyom) Ar Pr IPP P STO 1000 1000
85 Dibbin Ar Pr To be decided To be decided ROR 100 100
86 Badao Ar Pr To be decided To be decided ROR 60 60
87 Kapak Leyak Ar Pr To be decided To be decided ROR 160 160
88 Talong Ar Pr To be decided To be decided STO 160 160
89 Etalin Ar Pr NTPC C STO 4000 4000
90 Attunli Ar Pr NTPC C ROR 500 500
91 Siang Lower Ar Pr IPP P STO 1600 1600
92 Nyamjunchhu St-I Ar Pr IPP P ROR 98 98
93 Nyamjunchhu St-II Ar Pr IPP P ROR 97 97
94 Nyamjunchhu St-III Ar Pr IPP P ROR 95 95
95 Dibang (Joint venture) Ar Pr NHPC C STO 3000 3000
96 Tawang-II Ar Pr NHPC C STO 750 750
97 Tawang-I Ar Pr NHPC C STO 750 750
98 Lohit Ar Pr To be decided To be decided STO 3000 3000
99 Subansiri Upper Ar Pr NHPC C STO 2000 2000
100 Subansiri Middle Ar Pr NHPC C STO 1600 1600

Page 78 of Chapter 1
Appendix 1.10 (contd)

SHELF OF HYDRO PROJECTS FOR LIKELY BENEFITS DURING 12 th PLAN

Likely
Benefit in
Sl. No Name of scheme State Agency Sector Type IC (MW)
12th Plan
(MW)
101 Lower Kopili ASM AGENCO S ROR 150 150
102 Upper Borpani ASM AGENCO S ROR 60 60
103 Tipaimukh MANI NEEPCO C STO 1500 1500
104 Umiam Umtru-V MEGH MeSEB S ROR 36 36
105 Ganol MEGH MeSEB S ROR 25 25
106 Mawhu MEGH NEEPCO C ROR 120 120

TOTAL 40657.50
Note: C: Central Sector; S: State Sector; P: Private Sector; ROR: Run of River; STO: Storage

Page 79 of Chapter 1
Appendix 1.10 (contd)
SHELF OF COAL AND LIGNITE BASED PROJECTS FOR LIKELY BENEFITS DURING
12th PLAN
ULTIMATE
LIKELY BENEFITS
S.NO NAME STATE AGENCY CAPACITY
IN 12th PLAN (MW)
(MW)
1 YAMUNANAGAR EXT HAR HRVUNL 300 300
2 JHAJJAR HAR IPP 1200 1200
3 TALWANDI SABO PUN PSEB 1500 1000
4 NABHA PUN PSEB 1000 1000
5 LEHRA GHAGGAR PUN PSEB 1000 1000
6 CHHABRA II @ RAJ RRVUNL 500 500
7 CHHABRA III RAJ IPP 500 500
8 KALISINDH TPS RAJ RRVUNL 1000 500
9 KAWAI RAJ IPP 1000 1000
10 JALIPA/ KAPURDI- LIGNITE RAJ IPP 1000 1000
11 RIHAND EXT@ UP NTPC 500 500
12 MAYURPUR (SONEBHADRA) UP UPRVUNL 2000 2000
13 ROSA @ UP ROSA P.C. 600 600
14 BARA TPS UP UPRVUNL 1000 500
15 OBRA REPLACEMENT UP UPRVUNL 1000 500
16 SHANKARGARH UP IPP 1000 1000
17 DOPAHA UP IPP 1000 1000
18 ULTRA MEGA AKALTARA CHG IPP 4000 4000
19 INTEGRATED PROJECT LARA CHG NTPC 4000 4000
20 BHAIYATHAN @ CHG IPP 1600 1600
21 MARWA CHG CSEB 1500 1500
22 KORBA SOUTH CHG CSEB 1000 1000
23 GODHANA CHG CSEB 2000 2000
24 ULTRA MEGA MUNDRA GUJ IPP 4000 4000
25 BHAVNAGAR LIGNITE GUJ NIRMA 250 250
26 GUJARAT LIGNITE @ GUJ NLC 1000 1000
27 PIPAVAV POWER PROJECT GUJ GPCL JV 900 900
28 ULTRA MEGA GIRYE MAH IPP 4000 4000
29 DOPAWE MAH IPP 1600 1600
30 ULTRA MEGA SASAN MP LANCO 3960 3300
31 SHAHPUR BHITONI MP MPGEN 1000 1000
32 ULTRA MEGA KRISHNAPATNAMA P IPP 4000 4000
33 KRISHNAPATNAM AP APGENCO 1600 800
34 LANCO NAGARJUNA @ KAR IPP 1015 1015
35 ULTRA MEGA TADRI KAR IPP 4000 4000

Page 80 of Chapter 1
Appendix 1.10 (contd)
SHELF OF COAL AND LIGNITE BASED PROJECTS FOR LIKELY BENEFITS DURING
12th PLAN
ULTIMATE
LIKELY BENEFITS
S.NO NAME STATE AGENCY CAPACITY
IN 12th PLAN (MW)
(MW)
36 RAICHUR NEW KAR KPCL 1000 1000
37 KOWSHIKA TPP KAR KPCL 1000 1000
38 KUDGI TPP KAR KPCL 1000 1000
39 NANDUR TPP KAR KPCL 1000 1000
40 NEYVELI III LIGNITE TN NLC 1000 1000
41 JAYANKONDAM LIGNITE TN NLC 1000 1000
42 ENNORE EXT TN TNEB 500 500
43 TUTICORIN EXT TN TNEB 1000 1000
44 CUDDALORE TN IPP 2000 2000
45 ULTRA MEGA CHEYYUR TN IPP 4000 4000
46 NABINAGAR JV @ BIHAR NTPC 1000 250
47 MUZAFFARPUR EXT JV @ BIHAR VAISHALI POWER 500 500
48 BARAUNI EXT BIHAR BSEB 500 500
49 KATIHAR BIHAR BSEB 1000 1000
50 NABINAGAR BIHAR BSEB 2000 2000
51 PIRPIANTI BIHAR BSEB 2000 2000
52 ULTRA MEGA JHARKHAND BIHAR IPP 4000 4000
53 NORTH KARAN PURA @ JHAR NTPC 1980 660
54 BOKARO STEEL @ JHAR DVC 500 500
55 TENUGHAT EXT JHAR TVNL 630 630
56 COAL BASED TPP PHASE I JHAR CESC 500 500
57 COAL BASED TPP PHASE II JHAR CESC 500 500
58 ULTRA MEGA ORISSA ORI IPP 4000 4000
INTEGRATED PROJECT
59 ORI NTPC 3200 3200
DARIPALLI @
60 NUELPOI ORI CESC 1320 1320
61 RENGALI ORI NLC 1000 1000
62 OPGCL JV ORI OPGCL 1200 1200
63 MALAXMI @ ORI NAVBHARAT 1040 1040
64 HALDIA I @ WB CESC 600 600
65 KATWA WB WBPDCL 1200 1200
66 RAGHUNATH PUR @ WB DVC 1000 1000
67 DPL U7A @ WB WBPDCL 300 300
68 DPL U8 @ WB WBPDCL 500 500
69 BAKRESHWAR EXT @ WB WBPDCL 500 500

Page 81 of Chapter 1
Appendix 1.10 (contd)
SHELF OF COAL AND LIGNITE BASED PROJECTS FOR LIKELY BENEFITS DURING
12th PLAN
ULTIMATE
LIKELY BENEFITS
S.NO NAME STATE AGENCY CAPACITY
IN 12th PLAN (MW)
(MW)
70 BARGOLOI TPS ASM ASEB 250 250
71 BADARPUR JV ASM ASEB 180 180
72 CHANDRAPUR JV ASM ASEB 100 100
73 MARGHERITA TPP @ ASM NEEPCO 480 480
74 GARO HILL MEGH NEEPCO 720 720
75 WEST KHASI HILLS TPP MEGH NEEPCO 240 240
TOTAL 98435
@ BEST EFFORT PROJECTS DURING 11TH PLAN
NOTE: THE LIST INCLUDES 11545 MW PROJECTS INCLUDED AS PROJECTS WITH BEST EFFORTS
IN 11TH PLAN

Page 82 of Chapter 1
Appendix 1.10 (contd)

IDENTIFIED GAS BASED PROJECTS FOR LIKELY BENEFITS DURING 12th PLAN

ULTIMATE LIKELY
SECTO
Sl.No. PLANT NAME STATE AGENCY CAPACITY BENEFITS IN
R
(MW) 12th PLAN (MW)

1 KAYAMKULAM KERL NTPC C 1950 1950

2 KAWAS II GUJ NTPC C 1300 1300

3 GANDHAR II GUJ NTPC C 1300 1300

4 PRAGATI II DELHI PRAGATI POWER S 330 330

5 PRAGATI III (BAWANA) DELHI PRAGATI POWER S 1000 1000

6 URAN MAH MAHAGENCO S 1040 1040

7 RELIANCE-DADRI UP RELIANCE ENERGY P 5600 5600

8 PYGUTHAN GUJ GPECL P 1050 1050

9 ESSAR HAZIRA GUJ ESSAR POWER P 1500 1500


KANNUR POWER
10 KANNUR KERL PVT LTD
P 513 513

TOTAL 15583
Note: If Gas/LNG becomes available at reasonable price, some of the above mentioned gas based projects may
yield benefits during 11th plan

Page 83 of Chapter 1
Appendix 1.10 (contd)

SHELF OF NUCLEAR PROJECTS FOR LIKELY BENEFITS


DURING 12th PLAN
LIKELY
BENEFITS IN
S.NO. NAME STATE AGENCY
12th PLAN
(MW)
1 KUDANKULAM U3,4 TN NPC 2000
2 KUDANKULAM U5,6 TN NPC 2000
3 JAITAPUR 1,2 GUJ NPC 2000
4 RAPP EXT RAJ NPC 1400
5 KAPP 3&4 KAR NPC 1400
6 LWR 3,4 NPC 2000
Sub total (NPCIL) 10800
7 NEW NUCLEAR NTPC 2000
Sub total (NTPC)
TOTAL 12800

Page 84 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan
Appendix 1.11
COMPARATIVE PERFORMANCE OF PARTERNERSHIP IN EXCELLENCE (PIE) STATIONS NTPC AS PIE PARTNER

Sl Station Unit No. Capacit Generat Dec'05 Dec'06 Apr-Dec'05 Apr-Dec'06 Change in 'Apr-Dec' period
No. y under ing
PIE MW Cap. Act Gen Act PLF Act Gen Act PLF Act Gen Act PLF Act Gen Act PLF Generation change PLF change
(MW)
MU % Net %
1 Tenughat 1,2 420 420 142.89 45.73 226.01 72.33 960.61 34.65 1957.52 70.62 996.91 103.78 35.96 103.78
2 Ennore 2,3,5 280 280 44.51 21.37 153.10 73.49 485.93 26.29 1059.71 57.34 573.78 118.08 31.05 118.08
3 Bokaro 'B' 1,2,3 630 630 304.79 65.03 321.43 68.58 1987.44 47.80 2470.6 59.42 483.16 24.31 11.62 24.31
4 Parichha 1,2 220 220 43.36 26.49 116.67 71.28 557.91 38.42 874.53 60.23 316.62 56.75 21.81 56.75

5 Durgapur DVC 3,4 350 350 109.96 42.23 211.67 81.29 1256.54 54.40 1536.91 66.53 280.37 22.31 12.14 22.31

6 Harduaganj 3,7 (4)* 215 160 34.76 21.73 64.06 53.81 335.39 23.64 573.82 54.34 238.43 71.09 30.70 129.90

7 RPH 1,2 135 135 84.68 84.31 81.53 81.17 386.63 43.39 564.44 63.35 177.81 45.99 19.96 45.99

8 Chandrapura 1,2,3 390 380 205.95 70.98 220.64 78.04 1464.83 56.91 1487.5 59.31 22.67 1.55 2.40 4.22
9 IP 2,3,4,5 247.5 247.5 94.94 51.56 80.55 43.74 716.10 43.84 671.27 41.09 -44.83 -6.26 -2.74 -6.26
10 Panki 3,4 210 210 77.29 49.47 66.52 42.58 738.39 53.27 664.92 47.97 -73.47 -9.95 -5.30 -9.95
11 Obra 7 to 13 1188 1188 506.43 57.30 423.72 47.94 3990.37 50.89 3926.18 50.07 -64.19 -1.61 -0.82 -1.61
12 Patratu 1,2 (9,10)* 350 80 22.62 38.00 49.49 83.15 182.59 34.58 254.38 48.18 71.79 39.32 13.60 39.32
13 Durgapur DPL 1 to 6 390 390 204.00 70.31 117.00 40.32 1609.05 62.51 1408.89 54.74 -200.16 -12.44 -7.78 -12.44
Total 5026 4690.5 1876.18 50.18 2132.39 61.10 14671.78 44.23 17450.67 56.37 2778.89 18.94 12.14 27.44

* Units are under long shut down.

Page 85 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.12
(Page 1 of 2)
STATE WISE LIST OF HYDRO RM&U PROJECTS COMPLETED IN THE 10TH PLAN
(PHASE I PROJECTS* & PHASE II PROJECTS)
As on 31.7.2006
S. Project, Inst. Cap. Cost (Rs. in Crs.) Benefits Category Year of
No Agency (MW) (MW) completion
Estima- Actual
ted
Himachal Pradesh
1. Pong, BBMB 6x60 17.70 17.79 36.00 RM&U 2003-04
(U)
Punjab
2. Shanan Ph.A, 4x15+ 1x50 11.35 10.93 - R&M 2003-04
PSEB
Karnataka
3. Nagjhari, U- 2x135 26.12 22.29 30.00 RM&U 2002-03
1&3, KPCL (U)
4. Supa PH, 2x50 2.64 2.47 - R&M 2002-03
KPCL
5. Mahatma 4x12+4x18 44.66 43.13 19.20 RMU&LE 2002-03
Gandhi*, (U) +
VVNL 120.00
(LE)
6. Munirabad, 2x9+1x10.3 3.64 3.53 28.30 RM&LE 2002-03
VVNL (LE)
7. Mani Dam, 2x4.5 1.00 1.00 - R&M 2002-03
KPCL
8. Shivasamudr 6x3+4x6 68.38 73.17 42.00 RM&LE 2004-05
am, VVNL (LE)
9. Bhadra, 1x2 3.30 1.96 2.00 (LE) RM&LE 2005-06
Ph.II, KPCL
Kerala
10. Pallivasal, 3x5+3x7.5 94.00 37.50 RM&LE 2002-03
KSEB (LE)
11. Sengulam, 4x12 114.00 371.71 48.00 RM&LE 2002-03
KSEB (LE)
12. Panniar, 2x15 62.00 30.00 RM&LE 2002-03
KSEB (LE)
Tamilnadu
13. Pykara*, 3x6.65+1x11+ 26.06 20.147 58.95 RM&LE 2004-05
TNEB 2x14 (LE)
14. Papanasam* 4x7 27.05 22.55 4.00 (U) RMU&LE 2005-06
, TNEB + 28.00
(LE)

Page 86 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.12
(Page 2 of 2)

S. Project, Inst. Cap. Cost (Rs. in Crs.) Benefits Category Year of


No Agency (MW) (MW) completion
Estima- Actual
ted
Orissa
15. Hirakud-I, U- 2x24 126.13 111.18 16.00(U)+ RMU&LE 2005-06
3&4*, OHPC 48.00(LE)
West Bengal
16. Maithon, U- 1x20 42.08 35.9828 20.00(LE) RMU& 2004-05
2*, DVC +3.20(U) LE
Maharashtra
17. Bhira Tail 2x40 1.60 0.70 - R&M 2003-04
Race,
MSPGCL
18. Tillari, 1x60 4.50 4.24 6.0 (U) RM&U 2004-05
MSPGCL
19. Koyna Gen. 4x70+4x80+ 12.00 11.50 - R&M 2004-05
Complex, 4x80
MSPGCL
Meghalaya
20. Umium St.I* 4x9 81.88 84.21 36.00(LE) RM&LE 2002-03
MeSEB
21. Khandong, 2x25 4.00 3.3499 - R&M 2003-04
NEEPCO
Total 2457.75 774.09 841.8397 613.15
[114.40 (U)
+ 498.75
(LE)]

Abbreviations: R&M – Renovation & Modernisation;


RM&U – Renovation, Modernisation & Uprating,
RM&LE – Renovation, Modernisation & Life Extension
RMU&LE – Renovation, Modernisation, Uprating & Life Extension;
R&M+Res.-Renovation & Modernisation + Restoration;
RM&LE+Res.- Renovation, Modernisation & Life Extension + Restoration;
RM&U+Res. – Renovation, Modernisation & Uprating + Restoration.
MW – Mega Watt; Res – Restoration; U – Uprating; LE – Life Extension
Phase I Projects started in 1987; Phase II Projects started in 1998

Page 87 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.13
(Page 1 of 2)

STATE WISE LIST OF ONGOING HYDRO RM&U PROJECTS PROGRAMMED FOR COMPLETION IN
THE 10TH PLAN (PHASE I PROJECTS* & PHASE II PROJECTS)
As on 31.7.2006
S. Project, Inst. Cap. Cost (Rs. in Crs.) Benefits Category Completion
No Agency (MW) (MW) Schedule
Estima- Expend.
ted cost Incurred
Jammu & Kashmir
1. Sumbal 2x11.3 22.32 0.654 - R&M 2006-07
Sindh*, (as on
J&KPDC 30.4.06)
Punjab
2. Ganguwal,U- 1x29.25 51.28 25.89 RM&LE+R 2006-07
1, BBMB (incl. (LE) es.
IDC +2.10
58.98
6.28) (Res)
(as on
3. Kotla, U-1, 1x29.25 51.28 26.61 RM&LE+R 2006-07
30.6.06)
BBMB (incl. (LE) es.
IDC +2.33
6.28) (Res)
4. Anandpur 4x33.5 3.68 0.1157 - R&M 2006-07
Sahib, PSEB (as on
30.6.06)
Rajasthan
5. Jawahar 3x33 16.55 N.A - R&M 2006-07
Sagar,
RRVUNL
6. Rana Pratap 4x43 20.70 N.A - R&M 2006-07
Sagar,
RRVUNL
Uttaranchal
7. Chibro, 4x60 12.00 9.09 - R&M 2006-07
UJVNL (as on
30.6.06)

8. Khodri, 4x30 8.00 2.845 - R&M 2006-07


UJVNL (as on
30.6.06)
9. Chilla, 4x36 25.00 18.196 - R&M 2006-07
UJVNL (as on
30.6.06)
Andhra Pradesh
10. Lower Sileru, 4x115 8.75 N.A - R&M 2006-07
APGENCO
Karnataka
11. Varahi, 2x115 2.57 3.62 (as - R&M 2006-07
KPCL on
12.7.06)

Page 88 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.13
(Page 2 of 2)

S. Project, Inst. Cap. Cost (Rs. in Crs.) Benefits Category Completion


No Agency (MW) (MW) Schedule
Estima- Expend.
ted Incurred
12. Sharavathy, 10x103.5 5.22 3.24 - R&M 2006-07
Ph.A, KPCL (31-5-05)
Kerala
13. Neriamanga- 3x15 58.00 49.96 45.00 RMU&LE 2006-07
lam* KSEB (as on (LE) +9.00
30.3.06) (U)
Tamil Nadu
14. Mettur Dam*, 4x10 30.17 24.16 (as 10.00(U)+ RMU& 2006-07
TNEB on 40.00(LE) LE
31.5.06)
Orissa
15. Hirakud-I - 9.85 15.88 - R&M 2006-07
(Sw.yard)*, (as on
OHPC 24.5.06
Maharashtra
16. Koyna St.III, 4x80@ 16.65 4.25 - R&M 2006-07
MSPGCL (tentativ (as on
e) 31.3.06)
Total 2800.10@ 342.02 190.9907 160.93
[19.00(U) +
137.5(LE) +
4.43 (Res.)]

@- Installed Capacity Koyna St. III at Sl. No. 16 not included in the total, as the
same has already been accounted for at Sl. No. 19 of Appendix 6.4 under Koyna
Gen. Complex.

Page 89 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.14
(Page 1 of 2)
State wise List of Ongoing Hydro RM&U Projects programmed for completion in
the 11th Plan (Phase I Projects* & Phase II Projects)
As on 31.7.2006
S. Project, Inst. Cap. Cost (Rs. in Crs.) Benefits Category Completion
No Agency (MW) (MW) Schedule
Estima- Expend.
ted Incurred
Himachal Pradesh
1. Bhakra LB, 5x108 488.00 - 540.00 RMU&LE 2011-12
BBMB (LE) +
90.00
(U)
2. Bassi, HPSEB 4x15 28.60 Nil 6.0(U)+ RMU&LE 2008-09
60 (LE)
Jammu & Kashmir
3. Lower 3x35 101.3 12.57 15.00 R&M+ 2008-09
Jhelum*, (as on (Res.) Res.
J&KPDC 30.4.06
4. Chenani, 5x4.66 34.90 - 23.30 RM&LE 2009-10
J&KPDC (LE)
5. Salal Ph. II, 3x115 + 91.46 - - R&M 2009-10
NHPC 3x115
Punjab
6. Shanan, Ph.B, 4x15 + 35.95 10.867 60.00 RM&LE 2007-08
PSEB 1x50 (as on (LE) (LE for 15
30.6.06) MW units +
R&M for 50
MW unit )
7. UBDC I&II, 3x15 + 7.89 0.87 45.00 RM&LE (LE 2007-08
PSEB 3x15.45 (as on (LE) for 3x15 MW
30.6.06) & R&M for
3x15.45 MW
8. Mukerian St.I, 3x15 6.04 4.29 - R&M XIth Plan
PSEB (as on
30.6.06)
Uttar Pradesh
9. Matatila, 3x10.2 92.35 1.00 15(U) + RMU&LE 2008-09
UPJVNL (as on 30.6 (LE)
30.4. 06)
10. Obra, UPJVNL 3x33 14.50 4.56 99.00 RM&LE 2008-09
(LE)
11. Rihand, 6x50 136.27 11.58 300.00 RM&LE 2009-10
UPJVNL (LE)

Page 90 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.14
(Page 2 of 2)
S. Project, Agency Inst. Cap. Cost (Rs. in Crs.) Benefits Category Completion
No (MW) (MW) Schedule
Estima-ted Expend.
Incurred (Till
date)
Andhra Pradesh
12. Nagarjuna Sagar, 1x110+ 33.35 - - R&M & 2007-08
(Ph.I) APGENCO 7x100.8 # Refurbishm-
ent of Units
1, 2, 4 & 5
13. Upper Sileru, APGENCO 4x60 4.20 - - R&M XIth Plan
14. Srisailam RB, 7x110 16.70 - - R&M 2007-08
APGENCO
Karnataka
15. Nagjhari, 3x135 $ 41.16 5.96 45.00 RM&U 2008-09
U-4to6, KPCL (U)
16. Sharavathy 10x103.5 15.73 - - R&M 2009-10
Ph.B, KPCL
17. Supa, KPCL 2x50 1.55 3.73 - R&M 2009-10
18. Nagjhari, U1 to 6, KPCL 3x150 + 17.23 1.15 - R&M 2008-09
3x135 $ (as on
12.7.06)
19. Lingnamakki, KPCL 2X27.5 5.26 0.14 - R&M 2008-09
(as on 12.7.06)
Kerala
20. Sabirigiri*, KSEB 6x50 98.56 57.00 300.00 RMU&LE 2008-09
(as on 31.3.06) (LE) +
35.00 (U)
Tamil Nadu
21. Sholayar-I, TNEB 2x35 40.68 - 14.00(U) RMU&LE 2008-09
+70.00
(LE)
Orissa
22. Hirakud-II*, OHPC 3x24 125.52 54.46 72.00 (LE) RM&LE 2008-09
(as on 24.5.06)
West Bengal
23. Jaldhaka St.I*, WBSEB 3x9 52.17 4.31 27.00(LE) RM&LE 2008-09
(as on 6/2006)
Maharashtra
24. Koyna St.I & II, MSPGCL - 75.50 60.34(for P.H.) - R&M 2007-08
(Incl. & 0.34 (for Sw.
12.50 for yd.) (as on
Sw. Yd.) 31.3.06)
Manipur
25. Loktak*, NHPC 3x35 19.755 - 15.00 R&M + Res. 2008-09
(Res)
Total 7138.85 $ 584.625 232.827 1861.90
[205.0 (U) +
1626.9 (LE) +
30.0(Res.)]
$ - Installed Capacity of Nagjhari (U-4 to 6) at Sl. No. 15 not included in the total, as the
same has already been accounted for at Sl. No. 18.

Page 91 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.15
(Page 1 of 2)

State wise List of Hydro RM&U Projects programmed for completion in the 11th Plan
but works of which are yet to be taken up for implementation
(Phase I Projects* & Phase II Projects)
As on 31.7.2006
S.No. Project, Inst. Cap. Estimated Benefits Category Completion
Agency (MW) Cost (MW) Schedule
(Rs. in Crs)
Himachal Pradesh
1. Dehar,(Ph-A) 6x165 11.00 - R&M 2008-09
BBMB
2. Giri, HPSEB 2x33 8.28 66.00 (LE) RM&LE XI th Plan
Jammu & Kashmir
3. Ganderbal, 2x3+2x4.5 34.20 15.00 (LE) RM&LE 2008-09
J&KPDC
Uttaranchal
4. Dhakrani, 3x11.25 55.00 33.75 (LE) RM&LE 2010-11
UJVNL
5. Dhalipur, 3x17 80.00 51.00 (LE) RM&LE 2010-11
UJVNL
6. Tiloth, UJVNL 3x30 130.00 90 (LE) RM&LE 2010-11
7. Khatima, 3x13.8 100.00 41.40 (LE) RM&LE 2009-10
UJVNL
8. Pathri, UJVNL 3x6.8 60.00 20.40 (LE) RM&LE 2009-10
9. Kulhal, UJVNL 3x10 30.00 30(LE) RM&LE 2010-11
10. Ramganga, 3x66 40.00 18.00(Res) R&M+Res. 2009-10
UJVNL
Andhra Pradesh
11. Hampi, 2x9(St.I) & 25.00 36.00 (LE) RM&LE XI th Plan
APGENCO 2x9(St.II)
12. Machkund *, 3x17(St.I) 124.45 15.25(U) RMU&LE XI th Plan
APGENCO & 3x21.25 +114.75(LE)
(St.II)
13. Tungabhadra, 4x9 25.00 36(LE) RM&LE XI th Plan
APGENCO
14. Nagarjuna 1x110 + 15.00 - R&M & XI th Plan
Sagar, Ph.II 7x100.8 # Refurbishm-
APGENCO ent of Units
3,6,7 & 8
15. Upper Sileru, 4x60 10.00 - R&M XI th Plan
Ph.II
APGENCO

Page 92 of Chapter 1
Demand for Power and Generation Planning Working Group on Power for 11th Plan

Appendix-1.15
(Page 2 of 2)

S.No. Project, Agency Inst. Estimated Benefits Category Completion


Cap. Cost (MW) Schedule
(MW) (Rs. in Crs)
Karnataka
16. Bhadra, KPCL 2x12 4.75 24(LE) RM&LE 2008-09

Kerala
17. Sholayar, KSEB 3x18 54.00 54.00 (LE) RM&LE XI th Plan
18. Poringal-kuthu*,KSEB 4x8 9.55 32.00 (LE) RM&LE XI th Plan
Tamil Nadu
19. Periyar,TNEB 4x35 73.8 140.00 RMU&LE 2009-10
(LE) +
28.00(U)
20. Moyar, TNEB 3x12 18.00 36.00 (LE) RM&LE XI th Plan
21. Kundah St.I, TNEB 3x20 50.00 60.00 (LE) RM&LE XI th Plan
22. Kundah St.II, TNEB 5x35 75.00 175.00 (LE) RM&LE XI th Plan
23. Kundah St.III, TNEB 3x60 70.00 180.00 (LE) RM&LE XI th Plan
24. Kundah St.IV, TNEB 2x50 35.00 100.00 (LE) RM&LE XI th Plan
25. Kundah St.V, TNEB 2x20 13.00 20.00 (LE) RM&LE of XIth Plan
Unit-1 & R&M
of U-2
26. Kodayar Ph.I, TNEB 1x60 30.00 60.00 (LE) RM&LE XIth Plan
Jharkhand
27. Subernrekha, JSEB 2x65 65.00 130.00 (LE) RM&LE XI th Plan
(Being
Revised)
28. Panchet, 1x40 44.96 40.00(LE) RM&LE 2008-09
U-1*, DVC
Orissa
29. Balimela, OHPC 6x60 160.00 360.00 (LE) RM&LE XI th Plan
30. Hirakud-I* U5&6, 2x37.5 92.37 75.00 (LE) RM&LE 2009-10
OHPC
West Bengal
31. Maithon U1&3, DVC 2x20 49.05 40.00 (LE) RM&LE XI th Plan
Maharashtra
32. Koyna-III, MSPGCL 4x80 150.00 320.00 (LE) RM&LE XIth Plan
Assam
33. Kopili, NEEPCO 2x50 + 36.01 (Likely - R&M & XI th Plan
2x50 to be Rev.) Refurbishm-en
of Units
1&2
Meghalaya
34. UmiumSt.II*, MeSEB 2x9 90.46 18.00 (LE) RM&LE 2008-09
35. Kyrdemkulai*, MeSEB 2x30 25.00 6.00 (U) RM&U XI th Plan
Total 4139.30 # 1893.88 2465.55
[49.25 (U) +
2398.3 (LE)
+18.0 (Res.)]

Page 93 of Chapter 1
Transmission Planning & National Grid Working Group on Power for 11th Plan

Chapter-2
TRANSMISSION PLANNING AND NATIONAL GRID

2.0 INTRODUCTION

The transmission system facilities had earlier been planned on regional basis with
provision of inter-regional link to transfer regional surplus power arising out of
diversity in demand. The generation resources in the country are unevenly located,
the hydro in the northern and north-eastern states and coal being mainly in the
eastern part of the country. Development of strong National Grid has become
necessity to ensure reliable supply of power to all. The planning & operation of the
transmission system has thus shifted from regional to national level. Formation of a
strong National Power Grid has been recognized as a flagship endeavour to steer the
development of Power System on planned path leading to cost effective fulfilment of
the objective of ‘Electricity to All’ at affordable prices. A strong All India Grid would
enable exploitation of unevenly distributed generation resources in the country to
their optimum potential by providing enhanced margins in inter-regional transmission
system. These margins, together with open access in transmission, would facilitate
increased trading in electricity leading to market determined generation dispatches
thereby resulting in supply at reduced prices to the distribution utilities and ultimately
to consumers benefit.

2.1 REVIEW OF TRANSMISSION SYSTEM DURING 10TH PLAN

The development of transmission system requirement during the 10th Plan was taken
up along with the development of the generation programme for 10th Plan. The
transmission system required for evacuation of power from each of the generation
project, as per the planning criteria adopted, had been identified as well as the
system required for strengthening of the network for delivery of power to the load
centres had also been identified. The identified transmission programme has been
reviewed from time to time to take into account any revision in the generation
programme and variations in development of load at various load centres in the State
systems. Generally, there had been no constraint in intra-regional transmission
systems. However, need of more capacities in the inter-regional systems was
increasingly felt. Transmission schemes for providing more inter-regional capacities
had already been initiated in the 9th Plan and the programme was accelerated during
10th Plan. This has resulted in consolidating the National Grid. The inter-regional
transmission capacity at 200kV and above increased from 5050 MW at the beginning
of 10th Plan i.e. by March 2002, to 11,450 MW by August 2006, and against revised
target of 16,450MW it is likely to reach 15,450 MW by the end of 10th Plan (i.e. by
March 2007).

Based on the list of generation projects corresponding to the programme of 41,110 k


transmission requirements at 132 kV level and above including the power evacuation
system as well as network strengthening were identified. This transmission
programme became the basis for taking up detailed planning exercise and finalizing

Page 1 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

of their transmission development programme by the Central Transmission Utility and


the State Transmission Utilities corresponding to the actual pace of 10th Plan
development happening in generation and the actual area-wise load growths.
Accordingly, the 10th Plan transmission programme had to be reviewed and targets
reworked to match the generation programme. Apart from changes in associated
transmission system corresponding to deferred/slipped/changed generation,
transmission strengthening in power delivery networks had also to be reviewed to
take care of variation in projected demand growth and the actual/updated projections
of demand growth. Accordingly, the transmission programme taken-up for execution
was revised as per the actual needs matching with generation projects.

2.1.1 Achievements in Transmission during First Four Years of 10th Plan

At the end of 9th five year Plan, corresponding to the total installed generation
capacity of 105 GW as on 31st March 2002 and peak demand of 73 GW, the
transmission system in the country at 765/HVDC/400/230/220/132/110 kV stood at
257 thousand circuit kilometres (Tckm) of transmission lines and 292 GVA of
substation capacity. The corresponding sub-transmission system and distribution
system stood at 302 Tckm and 115 GVA at 66/33/22kV, 1758 Tckm at
15/11/6.6/3.3/2.2kV, 176 GVA of distribution transformers and 3680 Tckm of LT lines.
[Ref: General Review 2002, CEA]

Summary of updated 10th Plan transmission programme targeted based on actual


progress during the first four years and the updated targets for the remaining year, is
tabulated below:
Table 2.1

As at the end Added Achieved To be Target for


of 9 Plan
th during as at the added the End of
Transmission System 2002-06 during
Unit i.e. March end of 10th Plan
Type / Voltage Class
2002 (four years) 2005-06 i.e. 2006-07 i.e.
* March 2006 March 2007
TRANSMISSION LINES
(a) 765 kV ckm 971 186 1157 996 2153
(b) HVDC ± 500kV ckm 3138 2738 5876 0 5876
(c) 400 kV ckm 49378 13773 63151 14403 77554
(d) 230/220kV ckm 96994 10593 107587 12017 119604
(e) HVDC 200kV ckm 162 0 162 0 162
Total of (a), (b), (c),(d) & (e) ckm 150643 27290 177933 27416 205349
SUBSTATIONS
(a) 765 kV MVA 0 0 0 3000 3000
(b) 400 kV MVA 60380 20540 80920 12120 93040
(c) 230/220 kV MVA 116363 28758 145121 12348 157469
Total of (a), (b) & (c) 176743 49298 226041 27468 253509
HVDC
(a) Bi-pole link capacity MW 3000 2000 5000 500 5500
(b) Back-to back capacity MW 2000 1000 3000 0 3000
(c) Mono-pole link capacity MW 200 0 200 0 200
Total of (a), (b) & (c) MW 5200 3000 8200 500 8700

[* General Review 2002, CEA]

Page 2 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

2.1.2 Programme of Inter-Regional Transmission Capacity in 10th Plan

At the end of the 9th Plan, the inter-regional transmission capacity at 200kV and
above was 5050 MW. The original programme corresponding to X Plan generation
programme of 41,000 MW was to add 18600 MW during 10th Plan. The revised target
programme for 10th plan is to add 11400 MW out of which 4400 MW has been added
during the first four years that is 2002-06 MW and 7000 MW is the target for 2006-07
so as to achieve 16450 MW in the end of 10th plan. Out of this target of 7000 MW,
Muzaffarpur-Gorakhpur 400kV D/C quad line with TCSC of 2000 MW was added in
August 2006. However, as per the progress, likely achievement is expected to be
1000 MW less due to slipping of Ranchi-Sipat 400kV D/C line. With this, the inter-
regional transmission capacity by the end of 10th Plan is anticipated to increase to
15450 MW by 2006-07.

The Inter-Regional transmission capacities programmed for the 10th Plan are:

¾ HVDC Back to-back stations at Gazuwaka (500 MW),


¾ HVDC Back to-back station at Sasaram (500MW),
¾ Talcher-Kolar HVDC Bipole (2000 MW), and
¾ Rourkela-Raipur 400kV D/C line with TCSC (1400 MW)
¾ Muzaffarpur-Gorakhpur 400kV D/C quad line with TCSC (2000 MW)
(* This line was charged on 26-08-2006, thereby establishing synchronous
connections between NER-ER-WR-NR.)
¾ Biharshariff-Balia 400kV quad line (1200 MW),
¾ Patna-Balia 400kV quad line (1200 MW),
¾ Agra-Gwalior 765kV line operated at 400kV, and
¾ Ranchi-Sipat 400kV D/C line with 40% series compensation (1000 MW)

2.1.3 Development of HVDC Systems during 10th Plan:

Talcher – Kolar HVDC + 500kV Bipole of 2000 MW capacity, Sasaram HVDC back-
to-back of 500 MW capacity and Gazuwaka HVDC back-to-back second module of
500 MW capacity were added during the X Plan. A summary of development of
HVDC systems in India during first four years and also programme for the last year
i.e. 2006-07 is given at Appendix-2.1

2.1.4 Development of 765kV Systems during 10th Plan:

Currently all of the 765 kV systems in the country are operated at 400kV, the
transmission system for Sipat that would be completed in 2006-07, would be
operated at 765kV, thus setting a new milestone in development of transmission
system in the country. A summary of development of 765kV transmission system in
India during first four years and also programme for the last year i.e. 2006-07 of 10th
Plan is given at Appendix --2.2

2.1.5 Development of Regional Grids during 10th Plan

List of major transmission schemes completed and programmed under the


development plan of the Regional Grids and National Grid during the 10th Plan are
given at Appendix --2.3 to Appendix --2.7.

Page 3 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

2.1.6 Fund Requirement and Utilization during 10th Plan

Initially, based on the 41 GW generation addition programme for 10th Plan, a total of
Rs 74400 crore was estimated for transmission schemes in 10th Plan. Out of this, a
sum of about Rs 40300 crore was to be spent for development of Regional grids and
Nation grid by Powergrid on its own and also through joint venture schemes.
However, because of slippage/deferment of generation programme over the span of
10th plan and consequent reduction in the transmission programme, only about Rs
20780 Crore (Rs 19168 crore by PGCIL alone and Rs 1912 crore through joint
venture) would be spent during X plan. Under state sector, the estimate was to spend
Rs 34100 crore for 66kV and above schemes (this estimate does not include the
schemes in J&K, Sikkim, Goa, Mizoram and Uttaranchal). Based on current estimate,
about Rs 28900 crore would be spent by the state utilities. (These estimates are for
220kV above schemes and do not include states of J&K and Sikkim). Thus with the
updated generation addition estimate of about 31 GW in five years of X Plan, an
amount of Rs 49680 crore would be spent.

2.1.7 Difficulties and constraints in implementation of Transmission Schemes

It may mentioned that due to sustained efforts by Central PSUs and States, and
close coordination by Ministry of Power/CEA with CPSUs and States the
transmission Schemes meant for evacuation of power from Generating stations,
strengthening schemes and sub-transmission schemes etc for absorption of power
from Generating Stations by the states had been commissioned well in time. Hence
by and large there was no bottling up, as such, of power from Generating stations
and the States were capable of absorbing the additional power capacity added during
these years. Not withstanding the above, transmission utilities faced some difficulties
in implementation and completion of their schemes. A case-wise analysis of
difficulties and constraints experienced by them is detailed in following paragraphs.

The CPSUs and States had experienced difficulties during construction of


transmission schemes. Noticeably, in case of Dhauliganga- Bareilly 400 kV D/C line,
Dadri- Panipat, 400kV S/C line, LILO of 400 kV Dadri-Ballabgarh D/C line at Noida,
Tehri –Meerut 765kV S/C line, Pykara-Arasur 230 kV D/C line some difficulties were
experienced.

¾ In case of Dhauliganga(NHPC)- Bareilly (initially to be charged at 220 kV),


progress in Ascot wild life area adversely affected since October, 2003 due to
refusal of permission for working in Ascot Wild Life Sanctuary.

¾ In case of Dadri-Panipat 400 kV S/C line, there were severe Right of Way
constraints and law & order problems. The problems were resolved through
the intervention of Senior Govt. Officials of Uttar Pradesh and the line was
commissioned in March 06.

¾ In case of LILO of 400 kV Dadri-Ballabgarh at Noida, work was held as


clearance was not received from NOIDA Authority in NOIDA. Matter pursued

Page 4 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

with NOIDA Authority /State Administrator to resolve the issue. Line is being
re-routed and work has re-commenced..

¾ Tehri-Meerut 765kV Ckt.-I was completed in August 2004 ahead of generation


project i.e. Tehri Stage-I HEP(4x250 MW). But, the Tehri-Meerut 765kV S/C
Ckt.-II, was completed in March 2006. Work in Rajaji National Park was not
allowed by forest authorities until clarification was received from Hon’ble
Supreme Court,

¾ In case of Pykara-Arasur 230 kV D/C, the proposal for transmission line falling
in forest area the clearance from Hon’ble Supreme Court received on 30th
Jan. 2004. There was further delay due to large scale tree cutting under the
direct supervision of Regional Conservator of Forests.

2.2 NATIONAL GRID

2.2.1 Introduction

Formation of a strong National Power Grid has been recognized as a flagship


endeavour to steer the development of Power System on planned path leading to
cost effective fulfilment of the objective of ‘Electricity to All’ at affordable prices. A
strong All India Grid would enable exploitation of unevenly distributed generation
resources in the country to their optimum potential by providing enhanced margins in
inter-regional transmission system. These margins, together with open access in
transmission, would facilitate increased real time trading in electricity leading to
market determined generation dispatches thereby resulting in supply at reduced
prices to the distribution utilities and ultimately to consumers benefit.

2.2.2 Emergence of Inter-Regional Systems

During the 1980s, the regional grids developed with construction of power evacuation
lines planned and implemented as associated transmission system of central sector
generation schemes for benefits within the regions. The initial set of inter-regional
links developed under the Centrally sponsored programme for building inter-state
infrastructure of State utilities, was utilized to facilitate exchange of operational
surpluses among the various Regions in a limited manner because the Regional
Grids operated independently and had different operational frequencies and the
power exchanges on these inter-regional links could take place only in radial mode.

In 1989, transmission wings of Central generating companies were separated to set


up Power Grid Corporation of India (POWERGRID) to give thrust to implementation
of transmission system associated with Central generating stations and inter-
Regional transmission programme based on perspective planning done by CEA.
Considering the prevailing operational regime at that time, it was decided to establish
initially asynchronous connection between the Regional Grids to enable exchange of
regulated quantum of power and asynchronous HVDC back-to-back links of 500MW
between the Northern Region and the Western Region at Vindhyachal, 1000MW
between Western Region and Southern Region at Bhardawati, 1000MW between

Page 5 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Eastern Region and Southern Region and 500MW between Eastern Region and
Northern Region at Sasaram were provided during 90s and early 2000s.

2.2.3 Formation of National Grid

The Eastern Region and the North-Eastern Region have been operating in parallel
since 1992 being connected by a 220 kV double circuit transmission line and more
recently by a 400 kV D/C transmission line. Western Region was interconnected to
ER-NER system synchronously through 400kV Rourkela-Raipur D/C line in 2003,
operationalising the Central India system consisting of ER-NER-WR. With
installation of TCSC, the transmission capacity of Rourkela-Raipur 400kV D/C line
was increased to 1400MW.

The Northern region, which till August 2006 had asynchronous radial mode and
HVDC back-to-back inter-regional transmission connectivity of 600 MW with the
Eastern region, and 1000 MW with the Western region, was also synchronously
integrated with the ER/NER/WR system with commissioning of the 400kV
Muzaffarpur-Gorakhpur line on 26th August 2006. The Muzaffarpur – Gorakhpur
400kV D/C quad line with fixed series capacitor and TCSC has added 2000 MW to
the ER-NR inter-regional transmission capacity.

Towards the Southern region, asynchronous interconnections of 1700 MW between


SR and WR and 600 MW between SR and ER providing a total of 2300 MW of inter-
regional transmission capacity was existing at the beginning of the X plan. With 2000
MW Talcher-Kolar HVDC Bipole line, and second 500 MW HVDC back-to back
module at Gazuwaka, both between SR and ER, the total inter-regional capacity
connecting to SR has increased to 4800 MW. As of now all inter-regional
transmission links of the Southern region are either asynchronous radial mode lines
or HVDC inter-connections. Synchronous integration of the Southern region with rest
of Indian grid would be firmed up after having experience of synchronous operation
of NR+ER+NER+WR system. One point AC interconnection through Parli – Raichur
400kv link supplemented with HVDC links has been proposed for this. The target is to
firm up this scheme in the first year of 11th Plan so that synchronous interconnection
of All India system could be realized with in the 11th Plan period.

2.2.4 Programme of Development of National Grid

As on today, the inter-regional transmission capacity of 11,450 MW is existing and


inter-regional energy exchanges of more than 12 billion kWh in a year thus
contributing to greater utilization of generation capacity. The program is to achieve
inter-regional capacity of 15750 MW by the end of 10th Plan and about 37,150 MW by
the end of 11th Plan. Additional 3000 MW through creation of Siliguri HVDC terminal
on Bishwanath Chariyali – Agra 800kV HVDC bi-pole line is also being considered
during 11th Plan itself. This would increase the target of inter-regional capacity by
2011-12 from 37150 MW to 40150 MW.

The table given below gives the programme of Inter-regional Transmission Capacity
up to 2011-12.

Page 6 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Details of inter-regional transmission –

Existing, under construction and Planned:


Table 2.2

Power Transfer Capacity (MW)

Name of system At the end Additions At the end Additions At the


of 9th Plan during of 10th during end of
i.e. end of 10th Plan Plan i.e. 11th Plan 11th
2001-02 2002-07 end of 2007-12 Plan i.e.
2006-07 end of
2011-12
ER – SR :
Gazuwaka HVDC back to 500 500 1000 1000
back
Balimela-Upper Sileru 220kV 100 100 100
S/C
Talcher-Kolar HVDC Bipole 2000 2000 2000
Upgradation of Talcher– 500 500
Kolar HVDC bipole
ER-SR 600 2500 3100 500 3600
total
ER –NR :
Muzaffarpur - Gorakhpur 2000 2000 2000
400kV D/C
(Quad Moose) with series
comp
Dehri-Sahupuri 220kV S/C 100 100 100
Sasaram HVDC back to 500 500 500
back
Biharshariff-Balia 400kV D/C 1600 1600 1600
quad increased loadability
with series capacitor in
associated lines in NR sys
Patna-Balia 400kV D/C quad 1600 1600 1600
increased loadability with
series capacitor in
associated lines in NR
system
Barh-Balia 400kV D/C quad 1600 1600
increased loadability with
series capacitor in
associated lines in NR
system
Sasaram–Fatehpur 765kV 2300 2300
S/C (40% SC)

Page 7 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Name of system At the end Additions At the end Additions At the


of 9th Plan during of 10th during end of
i.e. end of 10th Plan Plan i.e. 11th Plan 11th
2001-02 2002-07 end of 2007-12 Plan i.e.
2006-07 end of
2011-12
Sasaram-Balia 400kV D/C 1600 1600
quad increased loadability
with series capacitor in
associated lines in NR sys
ER-NR total 100 5700 5800 6700 11300
ER - WR :
Rourkela-Raipur 400kV D/C 1000 1000 1000
(without SC)
TCSC on Rourkla-Raipur 400 400 400
400kV DC
Budhipara-Korba220kV 400 400 400
D/C+S/C
Ranchi-Sipat 400kV D/C 1000 1000
(40% SC)
Ranchi-Rourkela-Raipur 1400 1400
400kV D/C
North Karanpura-Sipat 2300
765kV S/C
ER-WR 400 1400 1800 4700 6500
total
ER - NER :
Birpara-Salakati 220kV D/C 250 250 250
Malda-Bongaigaon 400kV 1000 1000 1000
D/C
Bongaigaon-Siliguri 400kV 1000 1200
D/C Quad

ER-NER 1250 1250 1000 2250


total
NR - WR :
Vindhychal HVDC back to 500 500 500
back
Auria-Malanpur 220kV D/C 250 250 250
Kota-Ujjain 220kV D/C 250 250 250
Agra-Gwalior 765kV S/C 1100 1100 1100
line-1 400kV op.
Agra-Gwalior 765kV line-1 1200 1200
765kV op
Agra-Gwalior 765kV line-2 2300 2300
Kankroli-Zerda 400kV D/C 1000 1000
RAPP-Nagda 400kV D/C 1000 1000
NR-WR 1000 1100 2100 5500 7600
total

Page 8 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Name of system At the end Additions At the end Additions At the


of 9th Plan during of 10th during end of
i.e. end of 10th Plan Plan i.e. 11th Plan 11th
2001-02 2002-07 end of 2007-12 Plan i.e.
2006-07 end of
2011-12
WR-SR :
Chandrapur HVDC back to 1000 1000 1000
back
Barsur–L.Sileru 200kV 200 200 200
HVDC mono pole
Kolhapur-Belgaum 220kV 250 250 250
D/C
Ponda – Nagajhari 220kV 250 250 250
D/C
Parli-Raichur 400kV D/C 1000 1000
WR-SR total 1700 1700 1000 2700
NER-NR/WR :
Bishwanath Chariyali–Agra 3000 3000
HVDC bi-pole 800kV
NER-NR/WR total 3000 3000
TOTAL ALL INDIA 5050 10700 15750 21400 37150

Additional 3000 MW through creation of Siliguri HVDC terminal on NER-NR/WR


inter-connector, which would increase the target of inter-regional capacity by 2011-12
from 37150 MW to 40150 MW.

2.2.5 Transmission System for Evacuation of Power from Hydro Projects in


NER, Sikkim & Bhutan

North Eastern Region, Sikkim and Bhutan have vast untapped hydro potential which
is planned for development during 11th plan and beyond. A major component of this
power will be utilised by deficit states in the northern and western region and for
which reliable evacuation system is planned to be developed. The requirement of
transmission system for evacuation of NER hydro power has been estimated
corresponding to the capacity of hydro projects which may be feasible to develop say
in the next about 20 years. This generation is estimated to be about 35000 MW in
NER, about 8000 MW in Sikkim and about 15000 MW in Bhutan. Taking local
development at accelerated pace resulting in demand within the NER, Sikkim and
Bhutan to be in the range of 10000 – 12000 MW (presently it is about 1500 MW), the
transmission requirement through the chicken neck works out to be of the order of
45000 MW. The total requirement including additional circuits for meeting the
contingencies and reliability needs, would work out to 7 or 8 numbers of 800 kV
HVDC bi-pole lines and 4 or 5 numbers of 400kV double circuit lines – a total of 12
numbers of high capacity transmission corridors passing through the chicken neck.
For this, RoW requirement would be about 1.5 Km in width considering minimum
distance between adjacent towers to be such that fall of any tower does not affect the
adjoining line. The first 800kV HVDC bi-pole line has been planned from a pooling
substation at Biswanath Chariyali in North-eastern Region to Agra in Northern region.

Page 9 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

This is being programmed for commissioning matching with Subansiri Lower HEP in
2011-12.

2.2.6 Regional system matching with inter-regional transmission system

Transmission systems within the regions to support the above inter-regional


transmission capacity is also planned. For example, together with Muzaffarpur-
Gorakhpur 400kV D/C line, Siliguri-Purnia-Muzaffarpur 400kV D/C in the Eastern
region and Gorakhpur-Lucknow 400kV D/C and Bareilly-Mandola 400kV D/C lines in
Northern region have also been provided. Similarly, together with inter-regional
transmission lines that would bring power from Kahalgaon and Barh in Eastern region
to Balia in Northern region, transmission system from Balia onwards towards western
part of Northern region has been planned. In the Western region, major system
strengthening scheme has been programmed for onwards transmission of power to
be received through ER-WR inter-regional links. Similarly, transmission system has
also been planned on both sides of inter-regional links between NR and WR and
between ER and SR.

2.2.7 Implementation of National Power Grid – Financing and Tariff Issues

The plan for National Power Grid and the schemes have been identified.
Implementation of these schemes would require, apart from investment decisions
and arranging finances, urgent needs for addressing transmission tariff related
issues. The total transmission charges payable to the Central Transmission Utility are
worked out on cost plus basis. In case of transmission system through private
participation on competitive basis, this would be as per bid-based tariff. The present
method of apportionment of the total transmission charges among the beneficiaries is
to allocate the regional pooled transmission charges in proportion to their shares in
Central Sector generation. This mechanism was evolved during the late seventies
when major Central initiatives were taken in generation and associated regional
transmission system. The formula has, by and large, worked satisfactorily. With each
addition in generation resources and associated transmission system in Central
Sector, the States had been getting their shares in more or less same ratio as the
allocations that existed prior to the incremental additions. However, with shift towards
market determined allocations, new dimensions have been added on account of - (a)
surpluses in Eastern region, (b) higher deficit in Northern region and Western region;
and (c) coming up of generation projects for cross-regional benefit and (d) merchant
generation plants without long-term power allocations or PPAs and intending to sell
on short-term basis to different customers utilizing open access in transmission.
Consequently, allocation of Central sector generation is no more taking place as per
earlier practice/formula. In this changed scenario, the existing methodology of
apportionment of Central Transmission Charges among the beneficiaries on regional
pool basis is causing distortion. As the cost of incremental facilities is generally
substantially higher than that of existing facilities, beneficiaries seeking lower or no
allocation from new Central generation see this transmission charge pooling and
apportionment arrangement to be disadvantageous to them, while the beneficiaries
seeking higher shares in new generation capacities find it advantageous to them.
Consequently, the States getting lower share in new Central generation are reluctant
to commit transmission charges for the incremental transmission system. This
difficulty is severe for those elements of transmission network which go towards

Page 10 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

improved system reliability and margins for open access and for supporting non-
committed transaction such as utilization of operational surpluses and incremental
cost merit based dispatch optimization. This gets further complicated in case of
projects with cross-regional or multi-regional benefits.

It is also important that the finances for the Transmission Schemes of the National
Grid are arranged at low cost. With focus on system reliability and building margins
for open access in the transmission system, the per unit investment in transmission
system at Regional and National level is set to increase considerably. This would
further increase on account of harnessing remotely located Hydro resources in the
Northern Region and North-Eastern Region. The impact of harnessing North-Eastern
Region Hydro resources would be much more as the power would have to be
transmitted across the North-Eastern and Eastern Regions to bring it to
Northern/Western/Southern Regions where it can be actually absorbed. As such, the
transmission charges may go up considerably.

2.2.8 Synchronous Inter-Connection of Southern Region with rest of Indian


Grid

Integration of the Southern region with rest of Indian grid was considered to be
programmed during 11th Plan period. The proposal is to connect SR and WR
synchronously through one 400kV D/C quad line between Parli and Raichur. Fixed
Series Capacitor as well as TCSC would also be provided on this link. The link would
have transmission capacity of the order of 2000 MW per quad D/C line under system
contingency with normal transmission capacity limited to 1000 MW, due to this being
only synchronous inter-connection between Southern region and rest of Indian grid.
The balance inter-regional transmission capacity for SR would come from existing
and future HVDC links.

POWERGRID is of opinion that further 11th Plan links to Southern Region should be
through HVDC and synchronous interconnection of Southern Region with rest of the
Indian grid should be considered after having a few years of experience of operating
the NR-WR-ER-NER system synchronously.

Synchronous inter-connection of Southern region with rest of Indian grid would be of


advantage to all as it would enable widening of real time power market allowing
optimization of generation resources on all India level. For realizing this at the
earliest, the proposal is being discussed so as to firm-up the scheme and achieve
synchronous interconnection of Southern grid within 11th Plan.

2.3 ELEVENTH PLAN PROGRAMME

2.3.1 Assessment of Transmission Capacity Requirement

The focus of transmission system development programme for the XI Plan is to


provide adequate inter-regional and intra-regional transmission capacity so as to
consolidate and strengthen the National Grid network towards a strong All India Grid.
The inter-regional power exchange requirement has been assessed from possible
scenarios of regional surpluses and deficits for the peak and off-peak conditions of
winter, summer and monsoon months. The surplus/deficit projections based on

Page 11 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

programme of generation and anticipated demand aims at estimating the


transmission requirement at the inter-regional level. Grid expansion plan evolved
based on this projection would be able to cater to the needs of various feasible
operating scenarios and also provide required margins to support market oriented
power exchanges. Transmission system programme for 11th Plan have been worked
out based on this methodology.

2.3.2 Transmission System Programmes for 11th Plan

For the development of transmission system in the country, the following


programmes have been identified to be taken-up during the 11th Plan:

Central Sector Schemes:


➢ Transmission schemes for inter-state transmission system
➢ Load dispatch schemes for National and Regional dispatch centres
➢ National level Power Exchange
➢ Comprehensive upgrading of protection system for total integrated
system for security of National and Regional grids
th
➢ Evolving perspective transmission plan for the 12 Plan period
➢ Augmentation of test facilities

State Sector Schemes:


➢ Transmission schemes for intra-state transmission system
➢ Load dispatch schemes for State and Area dispatch centres
➢ Schemes for upgrading of protection systems for security of State grids

2.3.3 Evolving the Perspective Transmission System for 11th Plan

In transmission system development in the country, the focus of 11th plan programme
is formation of the national power grid. A strong all India grid would enable
exploitation of unevenly distributed generation resources in the country to their
optimum potential. The transmission capacity together with the margins provided for
required redundancies as per planning criteria would provide a reliable transmission
system. this would meet the firm transmission needs and with open access in
transmission, would facilitate increased real time trading in electricity leading to
market determined generation dispatches thereby resulting in supply at reduced
prices to the distribution utilities and ultimately to the consumers. Development of
national grid has been necessitated by the large thermal generation potential in
eastern part of the country and equally large hydro generation potential in north-
eastern part. It has also been spurred by the opportunity provided by open access,
variation in hydrology / hydro potential and diversity of load across the country.

2.3.4 Assessment of National and Regional Transmission Requirements

For assessing the inter-regional power exchange requirements, possible scenarios of


regional surpluses and deficit corresponding to each year upto the end of 11th plan
(i.e. Each year upto 2011-12) has been projected for the peak and off-peak
conditions of winter, summer and monsoon months. The projection based on

Page 12 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

programme of generation and anticipated demand aims at estimating the


transmission requirement at the inter-regional level. The national grid system evolved
on this projection would be able to cater to the needs of various feasible operating
scenarios and also provide required margins to support market oriented power
exchanges.

Region-wise assessment of import(-)/export(+) need based on projection of


availability and demand corresponding to various seasonal scenarios of 2011-12,
which forms the basis for assessing the transmission requirement and evolving of the
national grid network is summarized in the following table:

Table 2.3
Assessment of Regional Exchange of Power

(All Figures in MW)


Winter
Winter Off Peak Winter Peak
Regions Availability Surplus(+) Availability Surplus(+)
Demand Demand
Deficit (-) Deficit (-)
Northern 30336 34468 -4132 39555 49240 -9685
Western 39368 36624 2744 42993 52320 -9327
Southern 28091 26922 1169 33493 38460 -4967
Eastern 30576 11844 18732 32675 16920 15755
North-Eastern 2638 1862 776 4218 2660 1558
Total 131010 111720 19290 152935 159600 -6665

Monsoon
Monsoon Off Peak Monsoon Peak
Regions Availability Surplus(+) Availability Surplus(+)
Demand Demand
Deficit (-) Deficit (-)
Northern 45477 34468 11009 47782 44316 3466
Western 39665 36624 3041 41277 47088 -5811
Southern 31530 26922 4608 33931 34614 -683
Eastern 30189 11844 18345 31239 15228 16011
North-Eastern 5658 1862 3796 6053 2394 3659
Total 152519 111720 40799 160281 143640 16641

Summer
Summer Off Peak Summer Peak
Regions Availability Surplus(+) Availability Surplus(+)
Demand Demand
Deficit (-) Deficit (-)
Northern 41364 44316 -2952 44821 49240 -4419
Western 39516 36624 2892 41934 52320 -10387
Southern 30111 26922 3189 33712 38460 -4748
Eastern 30383 11844 18539 31957 16920 15037
North-Eastern 4613 1862 2751 5403 2660 2743
Total 145987 121568 24419 157827 159600 -1773

Page 13 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

2.3.5 Identification of Transmission Systems for 11th Plan

Identification of transmission expansion plan was done based on power system


studies corresponding to the scenario at the end of 11th plan. The implementation
programme was subsequently worked out matching the evacuation and
strengthening schemes with associated generation and load growth. Most of the 11th
plan schemes have been discussed and firmed-up in the regional standing
committees on transmission planning. Investment approvals for some of the schemes
have also been obtained and construction started. Some of the schemes are in
investment approval stage. Some of the schemes are under final stages of firming-
up.

2.3.6 Inter-Regional System

It is envisaged to add during the XI Plan period new inter-regional capacities of


20700 MW at 220kV and above. This would increase the total inter-regional
transmission capacity of national power grid at 220kV and above from 16450 MW of
XI Plan beginning to 37150 MW by 2011-12.

Additional inter-regional transmission capacity of 1200 MW by enhancing


transmission capacity of each of the Barh-Balia, Patna-Balia and Biharsharif-Balia
400kV quad D/C lines from 1200MW to 1600MW by provision of series compensation
and SVC in Northern region and Eastern regional system has also been planned.

2.3.7 765kV Transmission System

Existing 765kv transmission system at the beginning of 11th plan would be:
Table 2.4

765kV Transmission Lines


Anpara-Unnao (UPPCL) S/C ckm 409
Kishenpur-Moga L-1(W) S/C ckm 275
Kishenpur-Moga L-2(E) S/C ckm 287
Tehri-Meerut Line-1 S/C ckm 186
Tehri-Meerut Line-2 S/C ckm 184
Sipat-Seoni Line-1 S/C ckm 336
Sipat-Seoni Line-2 S/C ckm 336
Agra-Gwalior Line-1 S/C ckm 140
TOTAL ckm 2153
765kV Sub-stations 765/400kV
Sipat Generation 2x1000 MVA 2000
Seoni 2x1500 MVA 3000
TOTAL MVA 5000

Page 14 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

765kV transmission line and substation programme for the 11th Plan period is:

Table 2.5

765kV Transmission Lines ckm / MVA


Sasaram-Fatehpur S/C ckm 400
Fatehpur-Agra S/C ckm 330
Agra-Gwalior Line-2 S/C ckm 140
SipatPP-Seoni Line-3 S/C ckm 340
SipatPP-Sipat S/C ckm 30
Seoni-Bina S/C ckm 330
Seoni-Wardha Line-1 S/C ckm 210
Seoni-Wardha Line-2 S/C ckm 210
Gwalior-Bina Line-1 S/C ckm 300
Gwalior-Bina Line-2 S/C ckm 300
Sasaram-North K. Pura S/C ckm 180
North K. Pura-SipatPP S/C ckm 350
TOTAL 5273
765kV Sub-stations 765/400kV
Unnao (UPPCL) MVA 2000
Agra MVA 3000
Meerut MVA 3500
Fatehpur MVA 3000
Gwalior MVA 3000
Bina MVA 2000
Seoni 3rd transformer MVA 1500
Wardha MVA 4500
Sasaram MVA 2000
TOTAL 24500
* In State Sector (UPPCL)

2.3.8 HVDC Transmission System

HVDC Bi-Pole, Mono-Pole and Back-to-Back transmission at the beginning of 11th


Plan:
Table 2.6

ckm (2xroute MW
HVDC Bi-pole System km) Capacity
Chandrapur-Padghe(MSTCL) ± 500kV 1504 1500
Rihand-Dadri ± 500kV 1634 1500
Talcher-Kolar ± 500kV 2738 2500
TOTAL HVDC bi-pole 5876 5500
HVDC Monopole
Barsur-Lower Sileru 200kV 162 200
HVDC Back-to-back
Vindhachal 500

Page 15 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Chandrapur 1000
Gazuwaka 1000
Sasaram 500
TOTAL back-to-back 3000

HVDC transmission system programme for the 11th Plan period is:

11th Plan Programme


ckm (2xroute MW
HVDC Bi-pole System km) Capacity
Balia-Bhiwadi ± 500kV 1800 2500
Biswanath-Siliguri-Agra ± 800kV 3600 6000
TOTAL 5400 8500

2.3.9 Inter-State Transmission Schemes – Status

All of the 11th plan inter-state transmission schemes to be commissioned by 2009


have already been firmed-up and are under execution. Most of schemes required by
2009-11 have also been evolved, discussed in the regional standing committees on
power system planning, firmed-up and are to be taken-up for execution so as to
complete and commission as per the target. However, a few transmission schemes,
particularly those required for evacuation system and regional system strengthening
schemes corresponding to those newly identified/uncertain generation projects where
execution/beneficiaries are yet be firmed-up are yet to be firmed-up. Process to firm-
up these remaining 11th plan transmission schemes which may be required for
completion towards the last years of the 11th plan is under way.

List of 11th Plan Inter-State Transmission Scheme is given at Appendix-2.8

2.3.10 Other Related Important Schemes in the Central Sector

¾ Load dispatch schemes for National and Regional dispatch centres


With integrated operation of all-India system, state of art load dispatch system
at the national level would need to be established. The regional level load
dispatch would also require up-gradation, both qualitative as well as
quantitative, to meet the requirement of growing size of the system and
emerging complexities of power system operation.

¾ Comprehensive upgrading of protection system for total integrated


system for security of National and Regional grids
A unified scheme covering comprehensive upgrading of protection system for
total integrated system is proposed under the 11th Plan programme. This
scheme to be taken-up in the Central sector for implementation by Power Grid
Corporation of India would provide for overhaul and upgrading of protection
system and equipment covering all the system elements including those in the
States' system, which have direct bearing on the security of the National and
Regional grids.

Page 16 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

¾ National Power Exchange System


For facilitation trading through double-sided bidding on a national platform
towards optimum utilization of generation resources, establishment of a Power
Exchange at National level is envisaged to be implemented during the early
years of 11th Plan.
th
¾ Evolving perspective transmission plan for the 12 Plan
With freer market system and number of merchant generation plants
increasing, transmission planning for the 12th Plan period would pose new
challenges. Transmission system would have to be evolved with much higher
uncertainty in projected generation-demand match-up scenario. Towards
meeting this challenge, it is proposed to take-up the transmission planning for
12th Plan as a planned scheme in which the system evolved by the in-house
expertise with in the country would be discussed with utilities of other
developed and fast developing countries and international experts before
firming-up the development program. In this scheme, software for Power
System Planning would also be upgraded to the state of art software.

¾ Augmentation of test facilities


Augmentation of facilities for testing of transmission equipment within the
country is needed for enabling timely procurement of reliable equipment in
transmission based on improved and tested designs.

2.3.11 Transmission System under State Sector

A well planned and reliable transmission system at the National and Regional level
would need to be complemented with development of matching transmission system
at 220kV and 132kV and also the sub-transmission and distribution system so as to
cater to the load growth and ensure proper utilisation of development in generation
and transmission facilities for the ultimate goal of delivery of the services up to the
end consumers in the country.

Inadequate development of sub-transmission and distribution system facilities in the


States of NER has been adversely affecting the reliability of power supply to the
consumers and also hampering the load growth in the region. The transmission, sub-
transmission and distribution systems of states require major strengthening/up-
gradation. Transmission lines that are under outage require speedy restoration for
bringing them into operation so that the states could avail their central sector shares
as well as utilize their own generation without any constraint.

Inadequacies in the transmission and distribution system had been on account of


slow implementation of schemes due to various factors such as time consumed in
E&F clearances, land acquisition, RoW constraints, fund limitation, organizational
difficulties of state utilities, lack of vendor response due to locational factors, law and
order, terrain specific difficulties, etc. Due to limited funding capabilities of state
utilities, most of the required transmission projects are generally funded by NEC or by
NLCPR under DONER and investment/funding approval of scheme so funded also
takes additional time. All these issues need to be addressed to achieve the
accelerated demand growth in NER.

Page 17 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Transmission schemes for intra-state transmission system, load dispatch schemes


for state and area dispatch centres and schemes for upgrading of protection systems
for security of state grids are also required to be firmed-up by the state transmission
utilities.

Intra-state transmission schemes for evacuation of power from generation schemes


in the state sector are given at Appendix 2.9.

2.4 TECHNOLOGY DEVELOPMENT

2.4.1 Needs for Technology Development

Indian Power System is growing at a rapid pace with the mission to achieve “Power
to all by 2012”. For transfer of power from the generation resources to unevenly
distributed major load centres, Regional grids have been developed and integration
of all the five (5) Regional Grids to form a strong National Grid is also going on with
increasing pace. Today, National Grid of 11,500 MW inter-regional capacity is under
operation, which shall be enhanced to about 37150 MW by end of XI Plan i.e. 2011-
12. Except Southern Region, all the other four regions are now connected
synchronously, thus forming a 88 GW synchronous grid. To ensure secure and
reliable operation of the large integrated grid on a real time basis use of latest
technology and search and development of new technologies to inevitable. Five
regional load dispatch centres equipped with modern State-of-the-Art technology
along with dedicated communication facilities are in operation and work on a National
Load Dispatch centre is in progress.

Establishment and real time operation of large T&D infrastructure of present day
technology poses challenges for conservation of eco-sensitive Right of Way,
environment & forest, implementation time, automation of substation, project cost and
grid management. Therefore, it is necessary to modernize the power transmission
network by integrating latest technologies suitably into the development plan to
ensure maximum utilization of existing transmission infrastructure, provision of open
access, phase-wise generation development and implementation in a time bound
and cost effective manner.

2.4.2 Adopting New Technologies in Transmission System

New technologies should be adopted and implemented in a proactive manner to


achieve the objective of optimum utilization of the available transmission assets as
well as conservation of Right-of-Way, reducing transmission costs, reduction of
losses etc. Some of the new technologies adopted/being adopted in its transmission
system include:

• High capacity 6000MW +800kV HVDC system


• 765kV AC Transmission System
• Ultra High Voltage AC Transmission System(1000kV)
• Application of Series Compensation
• Flexible AC Transmission System (FACTS)
• Upgradation/Uprating of transmission line

Page 18 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

• High temperature endurance conductor


• Tall/Multi-circuit & Compact tower
• High Surge Impedance Loading Line (HSIL)
• Remote operation of substation, substation automation and Gas Insulated
substation (GIS)
• All Aluminium Alloy Conductors (AAAC) and Polymer/Composite Insulators.
• Development of disc insulators of 320kN & 420kN indigenously for both AC &
HVDC applications, as import substitution.
• Indigenous development of semi-conducting glazed insulators (Offering better
pollution performance)
• Introduced source/process inspection of equipment to ensure zero defect
• Airborne Laser Terrain Mapping (ALTM) for detailed route survey
• Thermo-vision scanning of the lines and sub-stations
• Conditional monitoring of equipment
• Preventive maintenance of Transformers using State-of-art Oil testing
laboratories set up by the company
• Emergency Restoration System (ERS)

For modernization of transmission system through latest technology integration, two


pronged strategies have been envisaged as under:

ƒ Enhance capacity and reliability of existing systems through:


ƒ Suitable technology for new systems keeping the long term perspective

2.4.3 Modernisation of Existing Transmission Infrastructure

To ensure maximum utilization of existing infrastructure, a number of technologies


have been implemented.

¾ Series compensation and facts


¾ Upgradation of lower voltage to higher voltage line
¾ Re-conductoring of transmission line
¾ Technology adoption for new transmission system
¾ Enhancement of conductor maximum temperature limits
¾ High capacity 400kV multi-conductor and 765kV system
¾ Compact towers
¾ High capacity HVDC system
¾ Ultra high voltage (1000kV) AC transmission system
¾ Modern line route survey technique
¾ Substation compaction, GIS, automation and remote operation
¾ High surge impedance loading line(HSIL)
¾ Fault current limiting reactor
¾ Grid operation and management
¾ Intelligent Grid
¾ Wide Area Monitoring System(WAMS)

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Transmission Planning & National Grid Working Group on Power for 11th Plan

2.4.4 Search for New Technologies

New technologies are also needed to find solution to some the problems being faced
in the transmission system. Currently important issues are stability enhancement,
engineering and design for the next higher voltage, and reduction of right of way
requirement for transmission lines. FACTS and PSS tunings should be considered in
this context. The failure of extra high voltage transformers is also a matter of concern.
Power transformers and converter transformers have failed in large numbers in the
country and through appropriate research and development input, this is required to
be corrected.

2.4.5 Open Access

It is also important that the finances for the Transmission Schemes of the National
Grid are arranged at low cost so that required reliability and margins for open access
could be provided in the transmission system with in acceptable costs.

The evolved transmission system expansion plan provides sufficient transmission


capacities with inherent margins for trading transactions. This also meets the intra-
regional transmission needs. Taking-up the execution of the transmission schemes
for timely completion would depend on timely tie-up of pre-construction activities and
thereafter construction being ensured within specified time period. Agreement on the
proposal together with commercial tie-up for payment of transmission charges based
on long-term open access application becomes a critical issue in this context.

As the Merchant plants would basically be long term-user of the transmission system,
the transmission system for their connectivity and meeting their primary transmission
needs can be planned and taken-up for construction based on commitment for the
transmission charges by the developers of the Merchant plants. The process for long-
term open access application and tying-up the transmission schemes should be done
at the earliest as building the transmission system including obtaining necessary
approvals, pre-construction and construction/commissioning activities for the
transmission schemes require almost same time, if not more, as that for
implementation generation projects.

2.5 TRANSMISSION REQUIREMENTS FOR OPEN ACCESS AND TRADING

2.5.1 Assessment of Transmission Capacity Requirement

The focus of transmission system development programme for the XI Plan is to


provide adequate inter-regional and intra-regional transmission capacity so as to
consolidate and strengthen the National Grid network towards a strong All India Grid.
The inter-regional power exchange requirement has been assessed from possible
scenarios of regional surpluses and deficits for the peak and off-peak conditions of
winter, summer and monsoon months, and projections assessed. The projection
based on programme of generation and anticipated demand aims at estimating the
transmission requirement at the inter-regional level. Grid expansion plan evolved
based on this projection would be able to cater to the needs of various feasible

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operating scenarios and also provide required margins to support market oriented
power exchanges.

2.5.2 Transmission Capacity for Trading

The above method adopted for evolving the transmission system expansion plan
provides sufficient transmission capacities which would have inherent margins for
trading transactions. Transmission system implemented on the basis of the
expansion plan evolved in this manner would enable trading across the regional
boundaries towards optimal utilization of generation resources in the country for
ultimate benefit of the consumer. As the system is evolved based on extreme
dispatches, it would facilitate trading most of the time without congestion, and
occasionally, under outage contingencies or severe loading condition with some
degree of congestion which should be acceptable. Currently, trading is taking place
through short-term bilateral contracts. With introduction of Power Exchange at
National level, which is being envisaged to be in place in near future, trading would
also take place through Power Exchange which would be day ahead contracts. All
the short term as well as Power exchange transaction would need transmission
capacity which would come out of the spare capacity inbuilt in the transmission
system. The reliability and operational margins in the planned and implemented
transmission system corresponding to the committed long-term transmission needs
would provide the transmission capacity for trading of power.

2.5.3 Pre-construction tie-ups are Critical

The comprehensive transmission system evolved on national basis and also meeting
the intra-regional transmission needs, has been assigned under various schemes –
power evacuation schemes matching with generational capacity addition programme
and system strengthening schemes matching with anticipated growth in demand in
the various areas. Agreement on the proposal together with commercial tie-up for
payment of transmission charges based on long-term open access application
becomes a critical issue in this context.

Generation capacity used for trading transactions should have commitment for
long-term transmission charges

The short-term or Power exchange transactions may take place out of generation
capacities for which transmission system have been provided based on commitment
of long-term transmission charges to be paid either by the generator or by the
identified beneficiary having long-term PPAs from such generation. The short-term or
Power exchange transactions may also take place out of generation capacities for
which there is no commitment of long-term transmission charges. The transactions of
the second kind would reduce the reliability margins of the transmission system
provided based on long-term commitments. Inter-regional trading transactions out of
generation capacities for which transmission system is provided only in the region
where the generation is located and not in the region where the transacted power is
sold are also akin to the second kind for the importing region as well for the inter-
regional transmission. In a developing system, depletion or reduction of reliability of
the transmission system by generators intending to sell through short-term trading
without tying-up and committing for the transmission charges corresponding to their

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full requirement would be harmful. As such, it would be necessary that all generation
capacities intended to be utilization through trading transactions should provide
commitment for long-term transmission charges.

2.5.4 Transmission Charges for Short-Term Open Access

Levy of open access transmission charges at reduced rates would be justified for
short-term or Power exchange transactions of the first kind that is those taking place
out of such generation capacity for which long-term transmission charges have also
to be paid. However, levy of open access transmission charges at reduced rates may
not be justified for short-term or Power exchange transactions of the second kind,
that is those taking place out of such generation capacity which are created without
commitment for long-term transmission charges.

2.5.5 Transmission Capacity Margins

Transmission capacity through creation of additional transmission system could be


provided based on long-term commitment for the transmission charges. It has been
estimated that reliability and operation margins would be generally of the order of 25-
30% of the transmission capacities required for meeting the firm transmission needs
of the long-term committees. This level of redundancy would generally provide
sufficient margins for trading needs. However, it should be noted that short-term open
access (STOA) transactions operating on these margins, even if curtailable, cause
reduction in the security level. Therefore, unless margins are increased by design,
the system operator would have tendency to keep cushions by underestimating the
operational margins. As the system security is of paramount importance, creation of
increased margins by design becomes essential for accommodating STOA. This
involves costs which are in addition to the cost of incremental losses caused by
STOA. Both these costs should be recovered from STOA customers. Lesser
charges for STOA would dissuade long-term commitments for transmission
charges leading to retarded growth in transmission system.

2.5.6 Transmission System for Merchant Plants

Merchant plants would sell their power to customers who are not predetermined
through Power exchange contracts. However, they are long term-user of the
transmission system. The transmission system for the connectivity of the merchant
plant as well as for meeting their transmission needs is required to be planned and
built matching with the implementation of the merchant generation plant. Also, some
of the generation plants have only a part of their generation capacity tied-up in long-
term bi-lateral PPAs. When such plants seek long-term open access only for a part of
their full generation capacity, they inherently also seek connectivity for the remaining
capacity which would be available with them as a merchant plant capacity. As the
transmission system in both the cases would be required to be planned and
implemented corresponding to the full requirement, they are long-term beneficiary of
the transmission system. For proper planning and implementation of transmission
system, the merchant generators need to inform about region(s) in which they would
generally sell their power, so that transmission system requirement for evacuation of
their power and transmitting it to identified load centres could be assessed and any
additional capacity required could be planned. As building the identified transmission

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Transmission Planning & National Grid Working Group on Power for 11th Plan

schemes including obtaining necessary approvals by the identified transmission


company /companies would generally require almost same time as that for
implementation generation projects, firming up of sellers and assessment of
transmission requirement should be started at the earliest.

2.5.7 Need for Revising Transmission Tariff Design

As, the merchant plants would not have long-term commitments for selling of their
power, a transmission tariff design is needed in which such generators could share
the transmission charges proportionate to their generation capacity. Also, there
is an urgent need for National concept in transmission tariff so as to address the
issue of high transmission charges in the North-eastern region as well enabling
expeditious development of long-haul inter-regional transmission corridors. However,
National pooled transmission tariff should not be on flat postage stamp method.

We know that the flat postage stamp method applied in the regional pooled
transmission tariff puts the load centric generation at a disadvantage, but is
acceptable in the regional system on account of its simplicity and generation
resources within the region being fairly dispersed and thus moderating the effect of
distortion. However, application of flat postage stamp method in National pool
tariff would totally distort the economics of load centric generation as the
physical disposition of generation resources in the country is quite uneven and the
transmission distances quite large. Also, the techno-economic considerations
highlight the need of directional sensitivity in transmission tariff design. A pragmatic
change in the transmission tariff design is needed so as to capture the sensitivity of
locating and dispatching the generation resources and give proper tariff signals
towards optimizing the choices. Zonal Matrix Transmission Tariff design suggested
by CEA should be considered in this context. Regulations for connectivity of
merchant generation capacity, transmission capacity of Power exchange and need
for new transmission tariff design are all related issues which seek a comprehensive
solution towards facilitation trading coupled with optimal choices in locating and
dispatching generation and also attracting investments in strengthening transmission
network that would be needed to top-up the system reliability effected by market
determined transactions.

2.6 POWER EXCHANGE WITH NEIGHBORING COUNTRIES

India has bilateral cooperation for power exchange with Nepal and Bhutan. The
terms of co-operations with Bhutan also includes development of hydro power
projects and power system in Bhutan which has fructified in accelerated
development of the projects in Bhutan. With other South Asian Nations, namely
Bangladesh, Pakistan, Myanmar, Thailand and Sri Lanka, discussions have been
held from time to time on possible road map for co-operation between the South
Asian Nations in the forum of SAARC and BIMSTEC initiatives. The discussions
have covered many areas including power. However, as yet, there is no agreed co-
operation for exchange of power with any other Nation except Bhutan and Nepal.

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2.6.1 India-Bhutan

India and Bhutan have terms of cooperation for development of hydro generation and
power system in Bhutan and power supply to India for mutual benefit of both the
countries. Hydro Projects at Chukha (336 MW), Kurichu (60 MW) and Tala
(1020MW) in Bhutan have been implemented with technical and financial assistance
of India. Transmission system for export from Bhutan to India has also been
developed with these hydro generation projects. The transmission system developed
with these projects is: 220 kV Chukha (Bhutan)-Birpara (India) (3 circuits) and 132 kV
Kurichu-Gelphu (Bhutan) – Bongaigaon/Salakati (India) (single circuit) lines.

Tala HEP (6x170 = 1020 MW) is also being implemented with Indian technical and
financial assistance. As the internal demand in Bhutan is much less as compared to
capacity of the generation projects, most of power from Tala HEP would also be
exported to India. Two nos. of 400 kV double circuit lines from Tala HEP (Bhutan) to
Siliguri (India) have been provided along with the generation project. The first unit of
170 MW at Tala HEP has been commissioned on 29.7.2006 and the other units are
being commissioned progressively and it is expected that all units at Tala HEP will
be commissioned by the end of this year.

Phunatsanchhu-I (1000MW), Phunatsanchhu-II (1000MW) and Mangdechhu


(600MW) hydro electric projects in Bhutan have also been envisaged to be
developed with Indian cooperation and investigation/DPR activities have been taken-
up. Comprehensive transmission system for power evacuation from these projects
have been tentatively evolved and would be firmed-up and developed in a phased
manner matching with phased development of the generation projects.
Commissioning of these projects is being tentatively programmed during 2011-14.
Power imported from these projects would be pooled at Siliguri and further
transmission to the stated of Northern region and Western region is planned through
HVDC system.

India also exports power to Bhutan during winter period when there is reduced hydro
generation in Bhutan.

Power import from Bhutan in the last 3-years is as under:

Year Total power import by India from


Bhutan (MU)
2003 1748
2004 1735
2005 1764

Following transmission lines are existing between India and Bhutan:

• 400kV 2xD/C Tala(Bhutan) – Siliguri(West Bengal, India)


• 220 kV,1xD/C, Chukha(Bhutan)-Birpara ( West Bengal, India)
• 220 kV,1xS/C, Chukha(Bhutan) -Birpara( West Bengal, India)
• 132 kV,1xS/C, Kurichu(Bhutan) -Gelephu(Bhutan)-Salakati
(Assam,India)

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Transmission Planning & National Grid Working Group on Power for 11th Plan

• 33kV(operated at 11kV),1xS/C,Tamulpur(Bhutan)-Rangia(Assam, India)


• 11 kV, 1xS/C,Udalguri(Bhutan) -Daifam(Assam, India)
• 11 kV, 1xS/C,Banarhat(Bhutan) -Samtse(West Bengal, India)
• 11 kV, 1xS/C,Jaldhaka(Bhutan) - Sibsoo(West Bengal,India)

2.6.2 India-Nepal

India has terms of co-operation for exchange of power with Nepal. The inter-border
exchange of power between India and Nepal has been taking place for mutual
assistance in supplying to border areas of the two countries. Bilateral exchange of
power between India and Nepal is taking place since 1971, between contiguous
areas on the border of India and Nepal. These bilateral exchanges between India
and Nepal take place through various interconnecting lines at 11 kV, 33 kV and 132
kV between Nepal and the bordering States of India viz. Bihar, Uttaranchal and U.P.
The exchange of power between the two countries is taking place between Nepal
Electricity Authority (NEA) and U.P. Power Corporation Ltd (UPPCL), Uttaranchal
Power Corporation Ltd (UPCL), Bihar State Electricity Board (BSEB). Only Bihar has
bi-directional exchanges with Nepal. While UP and Uttaranchal only export power to
Nepal.

Quantum of power exchange between the bordering States of India and Nepal
during the last three years is the following:-

BSEB (Bihar)-NEA (Nepal)

Year Import from Nepal Export to Nepal


(MU) (MU)
2003 166 82
2004 102 131
2005 114 204

UPPCL (Uttar Pradesh, India NEA (Nepal)

Year Export to Nepal


(MU)
2002 15.5
2003 13.3
2004 6.1

Transmission lines between Nepal and Bordering States of India

BSEB(Bihar)- Nepal:

132kV Gandak- Ramnagar


132kV Bhantabri – Duhabi
132kV Gandak east – Gandak
33kV Bhadrapur – Thakurganj
33kV Birganj – Raxaul
33kV Kataiya – Biratnagar

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Transmission Planning & National Grid Working Group on Power for 11th Plan

33kV Kataiya – Rajbiraj


33kV Sitamarhi – Jaleshwer
11kV Biratnagar – Jogbani
11kV Jainagar – Siraha
11kV Birgania – Gaur

UPPCL(UP)- Nepal:

33kV Pallia-Dhangarhi
33kV Itwa-Krishnanagar
33kV Anandnagar-Bhairwan
33kV Nanpara-Nepalganj
11kV Tulsipur-Koilabasa

UPCL(Uttaranchal)- Nepal:

33kV Lohiahead – Mahendranagar


11kV Pithoragarh – Baitadi
11kV Dharchula – Jaljibe
11kV Dharchula – Pipale

2.6.3 India-Pakistan

No transmission link is existing between India and Pakistan. During 1998-1999,


Government of India considered a proposal from Pakistan for export of power from
Pakistan to India. However, no progress was made as the talks got bogged down on
issues relating to tariff for power to be purchased from Pakistan.

2.6.4 India-Bangladesh

No transmission link is existing between India and Bangladesh. During 1997-98


proposal for exchange of power between India and Bangladesh was considered
under the aegis of ADB. Though couple of meetings was held in the past between
the two governments no progress/agreement has since then taken place.

2.6.5 India-Sri Lanka

No proposals have been formally discussed between the two countries. A study on
viability of inter-connection with Sri Lanka was carried out in 2002 by M/s Nexant
under USAID, SARI/E program. Recently, Nuclear Power Corporation of India
Limited has mooted a proposal for supply 400 MW to Sri Lanka for which HVDC
inter-connection has been proposed. However, there has been no discussion with Sri
Lanka on these proposals.

2.6.6 India-Myanmar

Talk of co-operation had been in reference to Tamanthi HEP (tentative 1200 MW) in
Myanmar from which power was also proposed to come to India.

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Transmission Planning & National Grid Working Group on Power for 11th Plan

2.6.7 Formation of SAARC Grid

SAARC has number of technical committees to implement, coordinate and monitor


the programmes in their respective areas of co-operation. There is a technical
committee for co-operation on energy. First meeting of SAARC technical committee
was held in Dhaka on 17-18 Nov. 2002 in which various issues including possibility of
creation of regional power grid between India, Bhutan, Nepal and Bangladesh was
discussed. The Indian position in this regard was that creation and growth of cross
border transmission links depended on identification of commercially viable electricity
flows from generating stations to load centres. The flows through the Indian grid
could take place through displacement. The meeting recommended that the matter
might be discussed further between the countries of India, Nepal, Bhutan and
Bangladesh with a view to evolving suitable arrangements in that regard. No
progress/agreement has since then taken place.

2.6.8 BIMSTEC

BIMSTEC (Bay of Bengal Initiative for multi-sectoral technical & economic co-
operation) has members from Bangladesh, Bhutan, Nepal, Myanmar, India, Sri
Lanka, and Thailand. The first BIMSTEC Energy Ministers Conference was held in
New Delhi on 4th October 2005. Subsequently, a workshop on BIMSTEC Energy
Centre was held in New Delhi on 25-27 January, 2006 as per the agreed Plan of
Action for energy co-operation in BIMSTEC. The concept note on BIMSTEC Energy
Centre is under consideration. It is proposed that the India would be the host country
for the BIMSTEC Energy Centre. Draft MoU for the BIMSTEC grid interconnection
circulated during the task force meeting for BIMSTEC Power Exchange and
development Project held on 28-29th March’06 in Bangkok inter-alia included
principles and objectives, institutional arrangements which would form a framework
for the member countries to cooperate works towards the implementation of grid
interconnection for the trade in electricity in the BIMSTEC region. The next (second)
BIMSTEC Summit is likely to be held in February 2008.

2.7 RELIABILITY ISSUES AND GRID OPERATION

2.7.1 Planning for a Reliable Power System


The key to a reliable power system is made up of the following levers:

➢ Adequacy of the provisions with planned level of redundancies sufficient to


deliver the desired reliability
➢ Secured operation maintaining sufficient margins at all times so as to
maintain system loading within such limits that contingencies do not lead to
loss of system integrity
➢ Best practices in maintenance – both preventive as well as restorative

To facilitate orderly growth and development of the power sector and also for
secure and reliable operation of the grid, adequate margins in transmission
system should be created. A Reliable power system can be planned through
centralised planning of Regional and National grid systems coupled with
matching development in the State grid systems. This would require adequate

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Transmission Planning & National Grid Working Group on Power for 11th Plan

and timely investments with coordinated action for implementing the schemes.
The needs are:
• Augmenting transmission capacity matching with generation additions
• Adequate redundancies as per specified criteria to provide the desired
reliability margins
• Development of transmission system for power evacuation as well as
system strengthening

11th Plan transmission plan/programme has been evolved meeting the above
requirement. Transmission capacities have been planned to cater to the
specified redundancy levels as per the planning criteria adopted in line with
international standards and practices.

The major highlights of transmission planning criteria in are:


➢ The transmission system planned in an integrated manner optimizing the
total network including that under the CTU as well as that for the STU(s).
➢ Criteria for mesh/loop network:
• 'N-1' adopted in general. 'N-2' adopted for transmission system from
large generating complex (3000 MW or above) and multi line
corridors (3 D/C lines or more), on case to case basis.
• In 'N-1' system adequacy without necessitating load shedding or
rescheduling of generation during steady state operation.
• In 'N-2' system adequacy without necessitating load shedding but
could be with rescheduling of generation during steady state
operation.
• 'N-1' withstand without necessitating load shedding or rescheduling
of generation during steady state operation –
• Outage of a 132kV D/C line, or
• Outage of a 220kV D/C line, or
• Outage of a 400kV S/C line, or
• Outage of single Interconnecting Transformer, or
• Outage of one pole of HVDC Bipole line, or
• Outage of a 765kV S/C line without series compensation.
• 'N-2' withstand without necessitating load shedding but could be with
rescheduling of generation during steady state operation -
• Outage of a 400kV S/C line with TCSC, or
• Outage of a 400kV D/C line, or
• Outage of both poles of HVDC Bipole line, or
• Outage of a 765kV S/C line.
• The above contingencies considered with a pre-contingency system
depletion (Planned Outage) of another 220kV D/C line or 400kV S/C
line in another corridor and not emanating from the same substation.
Operation of all the Generating Units within their reactive capability
curves and the network voltage profile within voltage limits specified.
➢ For requirement of reliability, planning criteria for evacuation system for
Nuclear power station is to consider outage of one circuit assuming pre-
contingency depletion of another circuit from the same station. This is
effectively N-2 without rescheduling but with no other pre-contingency.
➢ 'N-2' also for large cities with a power demand of 2000 MW or above

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Transmission Planning & National Grid Working Group on Power for 11th Plan

➢ Inter-regional transmission capacity based on requirement arising on


account of regional variation in surpluses and deficits during the peak
and off-peak hours of different seasons viz.: Summer Peak Load;
Summer Off-peak Load; Winter Peak Load; Winter Off-peak Load;
Monsoon Peak Load; Monsoon Off-peak Load; Dispatch scenarios for
maximizing transfer in specific inter-regional corridors considered to
determine the adequacy of transmission system to take care of
requirement of regional diversity in inter-regional export / import.
Sensitivity in respect of generation dispatch or load demand causing
increased burden on transmission system considered.

2.7.2 Growth Objectives


A well planned and reliable transmission system will ensure not only optimal
utilization of transmission capacities but also of generation facilities and would
facilitate achieving ultimate objective of cost effective delivery of power.
Development of the transmission system thus planned would meet the
following objectives:

‹ Similar level of development of transmission system across the country


‹ Transmission system for optimally utilizing the hydro-thermal mix of
generation resources taking into account the concentration of coal in the
eastern part of the country and hydro power sources in the north - eastern
and northern parts of the country.
‹ Obtaining the advantages of diversity based exchanges of power; that is,
exchanges on account of regional variations in generation and demand
pattern arising due to geographical, seasonal, time of day and operational
diversities.
‹ Formation of National Power Grid that would enable exploitation of
unevenly distributed generation resources in the country to their optimum
potential. For the full utilization of the generating capacity in the eastern part
of the country, an adequate transmission system has been planned linking
the North-eastern and Eastern part of the country with the Northern,
Western Southern regions aiming that no generating capacity is rendered
idle due to transmission constraints.
‹ Continued development of Regional Grids so as to meet the transmission
needs within each of the regions catering to the power evacuation from
generation capacity additions and strengthening in the regional grids
addressing requirements of specific areas.
‹ Transmission system strengthening schemes to overcome the deficiencies
and provide a reliable transmission grid that has margins for open access
and also provides to cater to changes in the pattern of power flows for inter-
state transmission arising on account of capacity additions for intra-state
benefits.

2.7.3 Development Needed in State sector


A well planned and reliable transmission system at the National and Regional
level would need to be complemented with development of matching
transmission system at 220kV and 132kV and also the sub-transmission and
distribution system so as to cater to the load growth and ensure proper
utilisation of development in generation and transmission facilities for the

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Transmission Planning & National Grid Working Group on Power for 11th Plan

ultimate goal of delivery of the services up to the end consumers in the


country.

2.7.4 Timely Implementation to Ensure Delivery of a Reliable Power System to


the System Operators
If the desired reliability is to be achieved, all the utilities, both in the Central
sector as well as State sector would need to ensure timely implementation of
the schemes. A task force under the chairmanship of Member (Power
Systems), CEA constituted by Ministry of Power, in its report of August 2005
has recommended the following:

(1) Parallel Processing of Activities


A transmission project involves various activities from concept to
commissioning. The Task Force observed that major reduction in project
implementation schedule is possible by undertaking various preparatory
activities (viz. surveys, design & testing, processing for forest & other
statutory clearances, tendering activities etc.) in advance/parallel to
project appraisal & approval phase and go ahead with construction
activities once Transmission Line Project sanction/approval is received.

(2) Packaging Concept


Total transmission project should be broken down to clearly defined
packages such that the packages could be procured & implemented
requiring least co-ordination & interfacing and at same time it attracts
competition facilitating cost effective procurement. The size & scope of
the different packages will therefore depend on magnitude & location of
project. However, the packages should be few and supply-cum-erection
type contracts should be preferred to avoid co-ordination problems. The
Task Force suggested typical packages for procurement / construction of
Transmission system.

(3) Standardization of Designs


To avoid repetitive work and uncertainties during testing, the tower
designs should be standardized. It is desirable that the designs are
standardized and development by Utilities prior to floating of tenders for
tower fabrication and construction so that 6-12 months or more time can
be saved in project execution. Standardization of designs/drawings for
other transmission line materials & substation structures, equipments,
control room building etc. also should be standardized to the extent
possible.

(4) Qualifying requirements for Vendors/Bidders


In order to select contractors of appropriate capability & capacity it is
required that Qualifying requirements in respect of technical resources,
financial capability, production capacity, tools & plants etc are stipulated
in bidding documents and contractors are selected accordingly.

(5) Bidding Document & Bidding Philosophy


The bidding documents should furnish all information necessary for a
prospective bidder to prepare a bid for the goods and works/services to

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Transmission Planning & National Grid Working Group on Power for 11th Plan

be provided. The technical specifications and conditions of contract need


to be unambiguous. Considering volatility of the input cost, it is desirable
that contracts are invited with suitable price variation provisions such that
contract price is adjusted based on published indices of raw materials &
labour. Single stage bidding may be practiced for transmission line &
substation works with appropriate packaging and qualification
requirement.

(6) Route Alignment, Detailed Survey & Soil Investigations


It is desirable that the project is defined to finer details to the extent
possible at the FR / Notice Inviting Tender (NIT) stage for effective
planning and scheduling of project(s) besides optimization of resources.
New technology/ techniques such as use of satellite imagery, GPS, total
stations, computer-aided tower spotting etc. for getting realistic
information/details leading to selection of optimum route alignment and
facilitating realistic estimation of bill of quantities have been suggested.
To avoid large quantity variations during execution stage, which can be a
cause of dispute/delay, it would be desirable to carryout detailed survey
before NIT.

(7) Mechanization in Construction, Quality Management System etc.


Thrust is to be given towards use of new technologies & mechanized
means for construction of transmission projects to reduce time. Besides
implementation of standardized Manufacturing & Field Quality Plans,
utilities should also adopt prompt and transparent Inspection
Management System for smooth implementation of the project.

(8) Environment, Forest Clearance and Rehabilitation & Resettlement


(R&R)
Advance action should be taken for processing forest clearances. With
adoption of modern survey t9chniques, it is possible to minimize the
infringement with forest as various alternatives can be analyzed. It is also
helpful in convincing the concerned Authorities for expediting clearances,
as better evaluation of forest involvement is possible. It is also desirable
that Environment & Social Policy & Procedures (ESPP) are required to
be framed by utilities through consultative process. Such initiatives would
assist in settlement of R&R and environmental issues expeditiously and
avoid delays on this account.

(9) Vendor Development


A large number of projects would be taken up by many utilities
concurrently for construction due to the large transmission programme to
be implemented in limited time frame. It is, therefore, recommended that
active vendor development initiatives are to be taken by all utilities so that
indigenous capabilities are effectively developed and adequate supplier/
vendor base is created to have competitive prices and timely completion
of projects.

Page 31 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

(10) Project Monitoring


A master network for the entire project from concept to commissioning
need to be prepared and monitored regularly with reference to the target
and required actions are taken. Similar detailed network is also to be
prepared for each package for monitoring activities at micro level.
Regular reviews should be done at Project Manager level and quarterly
review at Chief Executive level also is recommended.

(11) Various aspects as brought out above were deliberated in depth by the
Task Force, however, project authorities need to review and adopt
depending upon the size nature, location and complexities of the project
on case-to-case basis. A reasonable time schedule for a specific project
is required to be tailor-made for each project element like transmission
line, substations, HVDC terminals etc. depending on its size, nature &
complexity. Further, in case of large projects where many such project
elements are involved, suitable time periods need to be provided for each
element and the overall project completion schedule is to be accordingly
decided.

2.7.5 Load Dispatch and Communication Facilities


The availability of adequate load dispatch and communication facilities is
necessary for the smooth interconnected operation of the power system. The
would require a full fledged National Load Dispatch Center apart from
upgrading the existing Regional Load Dispatch Centers and State Load
Dispatch Centers. For enabling him to operate the system in a secured and
reliable manner, the load dispatcher should be provided with state of art tools
equipped with required telemetry, communication, computerized real-time data
acquisition systems and necessary supervisory control facilities for efficient
operation of the power system. At the National level, practically all the system
starting from the functional specification, is to be developed picking the
telemetry from Regional systems and building all the application functions
needed for the National Load Dispatch Center. At the regional level though
considerable data acquisition and communication facilities have been created,
these are not yet sufficient for implementation of state of art functions such as
state-estimation/data validation, contingency evaluation, optimal load flow,
security margin estimation, etc. For improving the operational reliability while
utilising the system to its fullest potential, it is necessary to upgrade the
Regional load dispatch system to the state of art. At the state level there are
deficiencies in many cases which require to be quickly removed so as to
facilitate smooth integrated operation of the power system.

System reliability also depends on quick restoration following any


contingencies. In case there is partial or total system collapse, re-energisation
and restoration of the system would be possible in a short time only if
adequate load dispatch and communication facilities were available.

As there would be a large number of organizations whose power systems


would be connected in parallel efficient voice communication facilities would
also be needed between the load dispatch centers and the control rooms of
the various utilities. When Power exchange is put in place, necessary

Page 32 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

communication facilities linking the Power exchange and the National Load
Dispatch Center as well as Regional Load dispatch centers would also be
needed.

2.7.6 Protection System


Power systems operating in synchronism should be provided with adequate
defence measures such as islanding schemes and automatic load shedding
schemes, so that following major incidents in the system, the system could
continue to operate without cascade failure leading to black out in large areas.
The protection schemes for the transmission lines, transformers, bus bars,
generators and other important power equipments should be of the highest
quality and should be properly coordinated. In order to cater to contingencies
of loss of generation, under - frequency relays for load shedding (both flat
frequency relays and rate of change of frequency relays) should be provided
for shedding load automatically. Inter-regional flows should also be used for
triggering appropriate protective action. This would prevent distress in the
system from spreading. In case a part of the power system is under acute
distress, it should be isolated out automatically from the remaining healthy part
of the system in such a way that as much a part of the system as possible
continued to operate. With such schemes, procedures for reconnecting the
power systems in actual operation would also have to be devised. In this
regard, the international experience of operating vast power systems in
synchronism should also be drawn upon.

It has been noted that there would be heavy power flow from the north -
eastern and eastern parts of the country and the hydro-electric projects in the
northern part of the country to other parts of the country. With integration of
systems in synchronous mode creating combined system of large power
number, the parameters determining level of grid security have changed. The
variation in grid frequency has reduced and therefore, in integrated
NR/ER/NER/WR system the frequency of 49.5 is like the frequency of 49.0 of
the NR or WR system. Therefore under-frequency relays need to be reset at
higher frequency cut-offs and the system should be considered in Alert state at
those frequencies which were not so critical in earlier regional system
operation. Also, the inter-regional and inter-area tie-line flows have become
critical parameters for monitoring the security of the grid and the grid security
is now to be judged more by the power flows rather than frequency. The
system operators should therefore realign their strategies accordingly.

The synchronous interconnection has also thrown open a vast horizon of


operational opportunities for dispatch optimization utilizing inter-regional
diversities. There is paradigm shift in system operation requiring a new set of
practices and procedures for operational planning, scheduling, monitoring and
grid security etc. which have to evolve with consolidation of experience of
operating the large synchronously interconnected system.

2.7.7 Grid Operation and Management


In view the growing complexities and change in market mechanism, it is
necessary to continuously upgrade and modernize the Grid operation &
control and communication facilities to operate large grid on real-time basis

Page 33 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

dynamically with safety, security and reliability. Towards this, it is envisaged to


develop Intelligent Grid with State-of-the-art features like wide area
measurement, adoptive islanding, probabilistic assessment, Dynamic Stability
Assessment (DSA) & Voltage Stability Assessment (VSA) technique, self
healing grids etc. on a pilot scale.

2. 7.8 Best practices in Maintenance


The transmission utilities should maintain a high level of system availability
and at the base level of system availability by adopting best practices.
Emphasis should be given on both preventive as well as restorative
maintenance. Emphasis should also be give to R&M programme, Residual
Life Assessment and restoration efficiencies in Transmission.

2.8 FUND REQUIREMENT DURING 11TH PLAN FOR TRANSMISSION SYSTEM


DEVELOPMENT AND RELATED SCHEMES

2.8.1 Total Fund requirement for transmission system development and related
schemes has been estimated as following:

Rs Crore

Central Sector (Inter State Transmission System) 75000


State Sector (State Transmission System) 65000

TOTAL 140000

2.8.2 Fund Requirement during 11th Plan – Central sector schemes

Development of National and Regional grids and related systems would require
the following types of schemes:

¾ XI Plan Transmission Schemes for power evacuation and system


strengthening for Central sector generation capacity requiring inter-state
transmission

¾ Transmission schemes for IPP Generation Capacity seeking open access


from CTU for inter-state transmission

¾ Spill over expenditure of X Plan transmission schemes and advance action


for XII Plan transmission schemes

¾ Other related important schemes in Central sector

Fund requirement for above types of schemes during XI plan is estimated to be


as following:

Page 34 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Rs Crores
Estimated Requirement
XI Plan Transmission Schemes for 44000 MW of Central 59200
sector generation capacity requiring inter-state
transmission
Transmission schemes for IPP Generation Capacity of 8000
6000MW seeking open access from CTU for inter-state
transmission
Spill over expenditure of X Plan transmission scheme And 7000
advance action for XII Plan transmission schemes
Total Central Sector Transmission Schemes 74200

Other related important schemes in the Central Sector

¾ Load dispatch schemes for National and Regional dispatch centres 500
¾ Comprehensive upgrading of protection system for total integrated 200
system for security of National and Regional grids
¾ National Power Exchange System 50
th
¾ Evolving perspective transmission plan for the 12 Plan 10
¾ Augmentation of test facilities 40
¾ Total other related important schemes in Central Sector 800

¾ Total Central Sector 75000

2.8.3 Fund Requirement during XI Plan – State Sector Schemes

Development of State grids and related systems would require the following types of
schemes:

¾ XI Plan Transmission Schemes of STUs for evacuation of state sector


generation including intra-state open access to IPP Generation in state sector
¾ STUs transmission schemes at 220kV, 132kV and 66kV to meet the
transmission needs of growth in demand
¾ Spill over expenditure of X Plan transmission scheme and advance action for
XII Plan transmission schemes
¾ Other related important schemes in the State sector for Renovation and
modernization of aging transmission system, State/Area load dispatch system,
Protection system up-gradation, and Software for planning and management
information system.

Fund requirement for above types of schemes during XI plan is estimated to be as


following:

Page 35 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Rs Crore
Estimated Requirement
XI Plan Transmission Schemes for 16000 MW of State 14400
sector and IPP generation capacity requiring intra-state
transmission.
STU transmission schemes at 220kV, 132kV and 66kV to 28800
meet the transmission needs of growth in demand.
(State-wise details of normative assessment is given at
Appendix 2.10)
Transmission schemes for 220kV, 132kV and 66kV 6000
system in states of Assam, Nagaland, Bihar, Jharkhand,
Goa and Uttar Pradesh for strengthening of transmission
system in these states so that these states may cater to a
demand level of at least 50% of National average.
(Details of this assessment is also given in Appendix 2.10)
Spill over expenditure of X Plan transmission scheme and 7800
advance expenditure on XII Plan transmission scheme
Other related important schemes in the State sector for 8000
Renovation and modernization of aging transmission
system, State/Area load dispatch system, Protection
system up-gradation, and Software for planning and
management information
Total State Sector Transmission Schemes 65000
Total 1,40,000

**********

Page 36 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.1

HVDC Transmission Bipole, Back-to-back and Monopole lines and terminal


station – Existing at the end of 9th Plan and programme for 10th Plan 2002-07

As at the
As at the end of
end of 9th 10th Plan
Plan i.e. 2002- 2003- 2004- 2005- 2006- i.e.
3/2002 03 04 05 06 07 3/2007
HVDC Bipole Line
Chnadrapur-Padghe ± 500kV MSEB ckm 1504 1504
Rihand-Dadri ± 500kV PGCIL ckm 1634 1634
Talcher-Kolar ± 500kV PGCIL ckm 2738 2738
TOTAL 3138 2738 0 0 0 0 5876

HVDC Bi-pole
Transmission Capacity
Chnadrapur-Padghe bipole MSEB MW 1500 1500
Rihand-Dadri bipole PGCIL MW 1500 1500
Talcher-Kolar bipole PGCIL MW 1000 1000 500 2500
TOTAL 3000 1000 1000 0 0 500 5500

HVDC Back-to-back
Transmission Capacity
Vindhachal b-t-b PGCIL MW 500 500
Chandrapur b-t-b PGCIL MW 1000 1000
Gazuwaka b-t-b PGCIL MW 500 500 1000
Sasaram b-t-b PGCIL MW 500 500
TOTAL 2000 500 0 500 0 0 3000

HVDC Monopole Line


CSEB/
APTRAN
Barsur-Lower Sileru 200kV SCO ckm 162 162
TOTAL 162 0 0 0 0 0 162

HVDC Mono-pole
Transmission Capacity
CSEB/
Mono- APTRAN
Barsur-Lower Sileru pole SCO MW 200 200
TOTAL 200 0 0 0 0 0 200

Page 37 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.2

Transmission lines and sub-station at 765kV – Existing at the end of 9th Plan
and programme for 10th Plan 2002-07

As at the As at the
end of end of
9th Plan 10th Plan
i.e. 2002- 2003- 2004- 2005- 2006- i.e.
3/2002 03 04 05 06 07 3/2007
765kV Transmission Lines
Anpara-Unnao S/C UPPCL ckm 409 409
Kishenpur-Moga L-1(W) S/C PGCIL ckm 275 275
Kishenpur-Moga L-2(E) S/C PGCIL ckm 287 287
Tehri-Meerut Line-1 S/C PGCIL ckm 186 186
Tehri-Meerut Line-2 S/C PGCIL ckm 184 184
Agra-Gwalior Line-1 S/C PGCIL ckm 140 140
Sipat-Seoni Line-1 S/C PGCIL ckm 336 336
Sipat-Seoni Line-2 S/C PGCIL ckm 336 336
TOTAL 971 0 0 0 186 996 2153

765kV Sub-stations
(765/400kV)
Seoni PGCIL MVA 3000 3000
Sipat PGCIL MVA 2000 2000
TOTAL 5000 5000

Page 38 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.3

Northern Region

In Northern Region following inter-state transmission schemes have been planned


and are under execution for benefit during X plan.

S. Name of Scheme Scheme Description


N.
1. Series Comp + TCSC on In this scheme 40 % fixed series compensation and 15 %
Kanpur-Ballabhgarh 400kV S/C variable compensation is proposed on Kanpur-Ballabhgarh
400 kV S/C line. This would increase the power transfer
capability from Eastern to Western part of Northern Grid
and improve stability of Northern Grid.
2. System Strengthening in a) Opening of existing 400 kV line between
Singrauli-Vindhyachal corridor Vindhyachal-Kanpur at Vindhyachal end and
connecting it to Singrauli end so as to form Singrauli-
Kanpur 400 kV S/C (3rd ckt)
b) Singrauli-Vindhyachal 400 kV S/C (2nd ckt) to utilize
the vacant bay as created above
3. Transmission system a) Dhauli Ganga- Bareilly 400 kV D/C (initially operated
associated with Dhauli Ganga at 220 kV)
4. Northern Region System a) Kanpur-Auraiya 400 D/C
strengthening scheme-I b) Bareilly Switching station of PG, 400kV
c) LILO of Lucknow-Moradabad 400 kV S/C at Bareilly
(PG)
d) LILO of Bareilly-Mandola 400kV D/C at Bareilly (PG)
2xD/C
e) Bareilly (PG)-Moradabad 400kV S/C
f) LILO of Sultanpur-Lucknow 400kV S/C at Lucknow
PG
5. Northern Region System a) Fixed series compensation of 40% on Allahabad-
strengthening scheme-II Mainpuri 400 kV D/C line designed for 95oC
b) Agra-Jaipur 400 kV DC
c) Wagoora 400/220 kV, 3rd transformer
6. Transmission system a) Dulhasti-Kishenpur 400 kV S/C
associated with Dulhasti b) Kishenpur-Wagoora 400 kV D/C
c) Kishenpur 315 MVA 400/220 kV S/S

Page 39 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

S. Name of Scheme Scheme Description


N.
7. Transmission system a) Rihand-Allahabad 400 kV D/C
associated with Rihand-II b) Dadri - Panipat 400 kV S/C - 2nd ckt
c) Patiala- Malerkotla 400 kV S/C
d) LILO of 400 kV Nalagarh -Hissar one Ckt at Kaithal
S/S
e) LILO of 400 kV Nalagarh -Hissar one Ckt at Patiala
S/S
f) Rihand- Mainpuri-Ballabgarh 400 kV D/C
g) Kaithal 630 MVA 400/220 kV S/S
h) Patiala 630 MVA 400/220 kV S/S
i) Mainpuri 315 MVA 400/220 kV S/S (Aug.)
j) Abdullapur 315 MVA 400/220 kV S/S 3rd ICT (Aug.)
8. Northern Region System a) Malerkotla – Ludhiana-Jullundhar 400kV S/C
strengthening scheme-III b) LILO of one ckt Moga-Hissar 400kV D/C
c) Ludhiana 400/220kV S/, 2x315 MVA
d) Fatehabad 400/220kV S/, 2x315 MVA

9. Transmission system a) Sewa -Hiranagar 132 kV D/C


associated with Sewa-II b) Sewa - Khatua 132 kV via Mahanpur
10. Transmission system a) Parbati-Nalagarh 400 kV 2xS/C (Quad)
associated with Parbati-II
11. Transmission system
a) Koteshwar-Tehri PoolingPoint 400 kV D/C line
associated with Koteshwar b) LILO of Tehri-Meerut at Tehri PP
c) Series comp. of 50% on TehriPP-Meerut 2xS/C
d) Tehri GIS Pooling Station
12. Northern Region System a) Provision of SVC support in NR system. (Total
strengthening scheme-IV quantum of compensation, their size and location
would be identified after further studies.)
13. Transmission system a) RAPP-Kankroli 400 kV D/C
associated with RAPP-5&6 b) RAPP-Kota 400 kV S/C
c) Kota 400/220 kV 3x250 MVA S/S
d) Kankroli 400/220 kV 3x315 MVA S/S
14. Northern Region System a) LILO of 400 kV Hissar-Jaipur at Bhiwadi
strengthening scheme-V b) Bhiwadi-Agra 400kV D/C
c) Bhiwadi-Moga 400kV D/C
15. System strengthening in a) Establishment of Roorkee 1x315 MVA 400/220 kV
Roorkee S/S by LILO of Rishikesh- Muzaffarpur S/C line at
Roorkee S/S
16. Additional transformers at Moga a) Moga 400/220 kV 1x250 MVA (Aug) 3rd transformer
and Amritsar b) Amritsar 400/220 kV 1x315 MVA (Aug) 3rd
transformer

Page 40 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

S. Name of Scheme Scheme Description


N.
17. Tala Transmission System for a) Gorakhpur-Lucknow (new) 400 kV D/C
NR b) Lucknow (New)-Unnao 400 kV D/C
c) Bareilly- Mandola 400 kV D/C
d) LILO of 400 kV Dadri-Samaypur D/C line at Maharani
Bagh-2xD/C
e) Gorakhpur (new)-Gorakhpur (UP) interconnection
400 kV D/C
f) Gorakhpur 1x315 MVA 400/220 kV S/S (new) with
2x63 MVAR L/R
g) New Lucknow 1x315 MVA 400/220 kV S/S(new)
h) Maharani Bagh 2x315 MVA 400/220 kV S/S (new)
18. Tala Supplementary a) Jullandhar-Amritsar 400kV S/C line and 400/220kV
Transmission System in NR 1x315 MVA s/s at Amritsar
b) Bahadurgarh 400/220kV 1x315 MVA s/s by LILO of
Bawana-Bhiwani 400kV line
c) 2nd 315 MVA 400/220kV transfrmr at Gorakhpur
19. Supplementary Transmission a) Kota-Merta 400 kV D/C
system associated with RAPP- b) Kankroli-Jodhpur 400 kV S/C
5&6
20. Associated Tr. System of a) Balia-Mau 400 kV D/C
Kahalgaon-II Phase-I(2x500 b) Balia-Lucknow (PG) 400 kV D/C with ser cap
MW) and Phase-II (1x500 MW) c) Lucknow (PG)-Bareilly (PG) 400 kV D/C.
in NR

Page 41 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.4

Western Region

In Western Region following inter-state transmission schemes have been planned


and are under execution for benefit during X plan.

S. N. Name of Scheme Description


1. Associated Transmission a) Tarapur-Boisar 400kV D/C
System of TAPP 3&4 b) TAPP(Extn.)-Boisar 220kV S/C (For start up power)
c) Tarapur-Padghe 400kV D/C
d) LILO of Gandhar-Padghe 400 kV S/C at Vapi (PG)
e) LILO of Gandhar-Padghe 400 kV S/C at Boisar (PG)
f) Vapi (PG) 2x315 MVA 400/220 kV S/S
g) Boisar (PG) 2x315 MVA 400/220 kV S/S
2. Raipur-Bhadrawati 400kV D/C a) Raipur-Bhadrawati 400 kV D/C
3. Bhadrawati-Chandrapur 400kV a) Bhadrawati-Chandrapur 400kV D/C
D/C
4. Associated Tr. System of a) Vindhyachal-Satna-Bina 400 kV D/C
Vindhyachal-III (2x500 MW) b) LILO of both ckts of Rourkela-Raipur 400 kV D/C line
at Raigarh
c) LILO of both ckts of Satna-Bina (MPSEB) 400 kV
D/C line at Bina (PG)
d) Raigarh 2x315 MVA 400/220 kV S/S
e) Bina (PG) 400/220kV Switching sub-station
5. Vindhyachal-Korba 400 kV S/C a) Vindhyachal-Korba 400 kV S/C line (2nd ckt.)
line (2nd ckt.)
6. Bina-Nagda 400 kV D/C line a) Bina-Nagda 400 kV D/C line
7. Associated Tr. System of Sipat-I a) Sipat-Seoni 765 kV 2X S/C
(3x660 MW) b) Seoni-Khandwa 400 kV D/C (Quad AAAC)
c) Nagda-Dehgam 400 kV D/C
d) LILO of Korba-Raipur at Sipat 400 kV D/C
e) LILO of Satpura-Bhilai at Seoni 400 kV D/C
f) LILO of both ckts of S. Sarover-Nagda 400 kV D/C
line at Rajgarh
g) Seoni 7x500 MVA 765/400 kV and 2x315 MVA
400/220 kV S/S
h) Rajgarh 2x315 MVA 400/220 kV S/S
8. Associated Tr. System of Sipat- a) Khandwa-Rajgarh 400 kV D/C
II (2x500 MW) b) Bina-Gwalior 765 kV S/C (initially op. at 400 kV)
c) Seoni 765/400 kV 3x500 MVA (Aug.)
d) LILO of 400 kV Korba-Raipur 400 kV line at
Bhatapara.
e) Bhatapara 2x315 MVA 400/220 kV S/S
9. Sipat-Raipur 400 kV D/C line a) Sipat-Raipur 400 kV D/C

Page 42 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

S. N. Name of Scheme Description


10. Transmission System a) Gandhar (NTPC)-Rajkot (GEB) 400 kV D/C
associated with Gandhar-II b) Gandhar (NTPC)-Kawas 400 kV D/C
(1350 MW) c) LILO of both circuits of Bina-Nagda 400 kV D/C line
at Shujalpur
d) Establishment of 2x315 MVA 400/220 kV substation
at Shujalpur
11. Transmission System a) Kawas-II-Vapi (PG) 400 kV D/C Quad
associated with Kawas-II (1350 b) Vapi (PG)- Navi Mumbai 400 kV D/C
MW) c) LILO of Lonikhand – Kalwa 400 kV S/C line at Navi
Mumbai,
d) Vapi (PG)-Khadoli (DNH) 220 kV D/C
e) Establishment of 400/220 kV 2x315 MVA S/S at Navi
Mumbai (GIS in case adequate land is not available).
f) LILO of Apta-Kalwa and Kharghar-Kandalgaon 220
kV D/C lines at Navi Mumbai. (LILO works under
preview of MSEB, 220 kV bay provision at Navi
Mumbai by PGCIL)
g) Installation of 400/220 kV 1x315 MVA 3rd transformer
at Vapi
12. To provide direct linkage to DNH Construction of multi circuit 2xD/C line between Vapi (PG)
and Daman & Diu from regional and line alignment of the 220 kV lines from Bhilad-
Vapi 400/220 kV s/s. Kharadpada & Bhilad-Magarwada thereby creating Vapi
(PG)–Magarwada 220 kV D/C and Vapi (PG)–
Kharadpada 220 kV D/C line by bypassing both the lines
at Bhilad.
13. Sipat-II Supplementary a) Seoni-Wardha, 765kV S/C line (initially op. at 400kV)
Transmission Scheme b) Wardha-Akola, 400kV D/C line
c) Akola-Aurangabad, 400kV D/C

Page 43 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.5

Southern Region

In Southern Region following inter-state transmission schemes have been planned


and are under execution during X plan.

S. N. Name of Scheme Description


1. Talcher-II evacuation System in a) Kolar-Hoody 400kV D/C
SR that is 40okV System for b) Kolar-Chennai(SPBudur) 400kV S/C
power dispersal from Kolar c) Kolar-Hosur-Salem 400kV S/C
d) Salem-Udumalpet 400kV S/C
e) LILO of Cuddapah-Somanhalli at Kolar
f) 400kV s/s at Hosur 2x315 MVA
g) 400kV Kolar s/s 2x315MVA
2. Series Comp on Nagarjuna a) 50% series compensation on both the circuits of
Sagar-Cuddapah and Gooty- Gooty-Bangalore 400 kV 2xS/C and Nagarjuna
Neelnamangla 400 kV lines Sagar-Cuddapah 400 kV D/C
3. Kaiga-Narendra 400 kV D/C a) Kaiga-Narendra 400 kV D/C
4. Establishment of Narendra a) Establishment of 2x315 MVA 400/220 kV S/S at
400/220 kV S/S Narendra
5. Southern Region System a) LILO of Nagarjunasagar-Raichur 400 kV S/C line at
strengthening scheme-IV Mehboobnagar
b) LILO of both the circuits of Nellore-Sriprumbudur 400
kV D/C line at Alamatti 400kV S/S
6. Neelamangla-Mysore a) Neelamangala-Mysore 400 kV D/C line
transmission system b) Mysore 2x315MVA 400/220 kV S/S
7. Madurai-Thiruvananthapuram a) Madurai-Thiruvananthapuram 400 kV D/C line
b) Thiruvananthapuram 400/220kV 2x315MVA
substation
8. Transmission system a) Ramagundam-Hyderabad 400kV D/C line
associated with Ramagundam- b) Hyderabad-Kurnool-Gooty 400kV S/C line
III c) Khammam-Nagarjunasagar 400kV S/C line
d) Gooty-Neelamangala 400kV S/C line
9. Southern Region System a) Augmentation of Transformer capacity by 1x315
strengthening scheme-V MVA at Munirabad, Cuddapah, Gooty, Khammam,
Gazuwaka and 3x167 MVA at Kolar 400 kV
Substations
b) 1x80 MVAR Bus reactor at Nellore 400kV S/S
10. Southern Region System a) Raichur-Gooty 400 kV D/C (Quad) line
strengthening scheme-III b) Neelamangala- Somanahaly 400 kV D/C
11. Southern Region System a) LILO of both the circuits of Gazuwaka-Vijayawada
strengthening scheme-VI 400kV D/C line at Vemagiri 400 kV S/S
b) 2nd 1x315 MVA 400/220kV Transformer at
Vijayawada

Page 44 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.6

Eastern Region

In Eastern Region following inter-state transmission schemes have been planned and
are under execution during X plan.

S. N. Name of Scheme Description


1. LILO of Silliguri-Gangtok 132 kV a) LILO of one ckt of Silliguri-Gangtok 132 kV D/C line at
line at Melli Melli
2. Installation of 2nd ICT at a) Indravati 1x315 MVA 400/220 kV 2nd Trf. (Aug.)
Indravati OHPC
3. LILO of Rangit-Silliguri at a) LILO of one ckt of 132 kV Rangit-Silliguri at Gangtok
Gangtok
4. Tala Transmission System (ER) a) Bhutan border to Siliguri 400kV 2xD/C
b) Siliguri-Purnia 400kV quad D/C
c) Purnia-Muzzafpur 400kV quad D/C
d) Muzaffarpur 400kV s/s with inter-connection to 220kV
s/s
5. Transmission system associated e) Teesta-Silliguri 400 kV D/C
with Teesta-V
6. Tala Supplementary Scheme for a) Biharsharif – Muzaffarpur 400kV D/C-129km
ER b) 2x315 MVA, 400/220kV S/S at Subhasgram
c) 2nd 315 MVA, 400/220kV ICT at Siliguri
7. Associated Tr. System of a) Kahalgaon-Patna 400 kV D/C quad
Kahalgaon-II Phase-I(2x500 b) Maithon (PG)-Ranchi 400 kV D/C
MW) and Phase-II (1x500 MW) c) 2x315 MVA 400/220 kV Patna s/s
in ER d) 2x315 MVA 400/220 kV Ranchi s/s

Page 45 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.7
Inter-Regional Schemes

The following inter-regional transmission schemes have been planned and have
been commissioned and/or are under execution during X plan.

S. Name of Scheme Description Status


N.
1. ER-WR a) Rourkela-Raipur 400kV D/C completed
interconnection b) TCSC on Rourkela-Raipur 400kV D/C
2. ER-NR a) Sasaram HVDC back-to back 500MW completed
interconnection b) Biharsharif-Sasaram 400kV D/C
c) Sasaram-Allahabad 400kV D/C
3. Talcher-II a) Talcher-Kolar 2000 MW HVDC bi-pole line completed
evacuation System b) Increasing capacity of Talcher-Kolar HVDc bi-
pole line from 2000MW to 2500MW
4. ER-SR link a) Second 500MW HVDC back-to back at completed
strengthening Gazuwaka
b) b) Series Capacitors on 400kV lines in ER for
increasing transmission capacity to
Gazuwaka
5. ER-NR inter- a) Muzaffarpur-Gorakhpur 400kV quad D/C with completed
connector with Tala TCSC
Transmission
System
6. Associated Tr. a) Patna-Balia 400kV D/C quad Under
System of b) Biharsharif-Balia 400kV D/C quad construction
Kahalgaon-II c) Ranchi-Sipat 400 kV D/C with 40 % series
Phase-I(2x500 MW) compensation
and Phase-II (1x500 d) Agra-Gwalior 765 kV S/C (initially op. at 400
MW) kV)

Page 46 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.8

INTER-STATE TRANSMISSION SCHEMES FOR THE XI PLAN

Region Scheme/ scheme group Transmission system


NR EVACUATION SYSTEM FOR TRANSMISSION SYSTEM FOR KOLDAM
KOLDAM (800 MW), PARBATI- 1. Koldam-Nalagarh 400 kV D/C Quad.
II (800 MW) AND PARBATI-III 2. Koldam-Ludhiana 400 kV D/C line
(520 MW)
TRANSMISSION SYSTEM FOR PARBATI II
1. Parbati II - Koldam 400 kV S/C (quad) 1st ckt
2. Parbati II to Koldam 400 kV S/C (quad) 2nd ckt
3. Opening of one ckt Koldam-Nalagarh 400 kV D/C
line at Koldam and joining with Parbati II-Koldam 2nd
ckt so as to form i) Parbati II-Nalagarh 400 kV S/C
line ii) Parbati II-Koldam 400 kV S/C line

TRANSMISSION SYSTEM FOR PARBATI III


1. LILO of Parbati II-Koldam 400 kV S/C line at Parbati
III
2. Establishment of switching station at Panarsa by
LILO of Parbati II – Nalagarh 400 kV line and by
LILO of Parbati III-Koldam 400 kV S/C line at
Panarsa
3. Panarsa-Amritsar 400 kV D/C line
NR Evacuation System for 1. CREATION OF 400/220 KV POOLING STATION
Chamera- III (231 MW) NEAR HAMIRPUR
2. Chamera III-Chamera Pooling Station 220 kV D/C
line
3. Chamera Pooling Station-Jullundur 400 kV D/C line
NR Evacuation System for Uri-II 1. URI-I- URI-II 400 KV S/C
HEP (240 MW) 2. Uri-II-Wagoora 400 kV S/C line
NR Evacuation System for Rampur 1. LILO of Nathpa Jhakri - Nalagarh 400 kV D/C at
HEP (434 MW) Rampur HEP
2. Ludhiana - Patiala 400 kV D/C
3. LILO of Patiala -Hissar 400 kV line at Kaithal
4. LILO of Nalagarh - Kaithal 400 kV line at Patiiala

Page 47 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

NR Evacuation System for Tehri With Koteshwar


PSS (1000 MW) & Koteshwar 1. Establishment of 400kV GIS Tehri Pooling Station
(400 MW), Lohari Nagpala HEP 2. LILO of Tehri – Meerut 765kV at Tehri Pooling Point
(600 MW) 3. Koteshwar – Tehri Pooling Point , 400kV D/C line
4. Series Compensation 50 % on the Tehri – Meerut
765kV 2xS/C lines (charged at 400kV)

WITH TEHRI PSS


1. TEHRI – TEHRI POOLING STATION, 400KV S/C
(QUAD) LINE
2. LILO OF BAREILLY – MANDAULA 400KV D/C LINE
AT 400KV MEERUT S/S
3. Charging Tehri Pooling Stn – Meerut line at 765kV
4. Tehri Pooliong Station (GIS) 765/400kV ,
3x1500MVA
5. Meerut S/S (GIS) 765/400kV, 3x1500MVA
6. Modification of Series capacitors on the Tehri-Meerut
lines for 765kV operation

With Lohari Nagpala


1. Lohari Nagpala HEP – Tehri/Koteshwar Pooling Point
400kV D/C line (triple moose)
2. Meerut – Agra 765kV S/C line
3. Second 765/400kV transformer at Agra 765kV S/S
NR Evacuation System for Tapovan 1. Tapovan Vishnugad – Roorkee 400kv D/C line (the
Vishnugad HEP (520 MW) line to be routed via Kuwari Pass where a 400/132kV
pooling station is proposed)
NR Evacuation System for RAPP U 1. Rapp – kankroli 400kv d/c line
5&6 APP (440 MW) 2. Rapp – kota 400kv s/c line
3. Kota 400/220kv s/s 2x315 mva
4. Kankroli 400/220kv s/s, 3x315 mva
Supplementary regional schemes to match with RAPP
5&6
1. Kota – Merta 400kV D/C line
2. Kankroli – Jodhpur 400kV S/C line
NR Evacuation System for Sewa-II 1. Sewa-Hira Nagar 132 kV D/C
(120 MW) 2. Sewa-Khatua 132 kV D/C one ckt via Mahanpur
NR Evacuation System for Nimboo 1. Nimboo Bazgo-Leh 33 KV 2XD/C
Bazgo (45 MW)
NR Evacuation System for Chutak 1. Chutak-Kargil 33 KV 2XD/C
(44 MW)
NR Evacuation System for Lakhwar 1. Lakhwar Vyasi-Dehradun 220 KV D/C
Vyasi (420 MW)

Page 48 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

NR Evacuation System for Kotlibhel With Kotlibhel ST-IA


st-IA (195 MW), Kotlibhel st-IB 1. LILO Kotlibhel-ST1B-Roorkee 1st CKT at Kotlibhel-
(320 MW), Kotlibhel st-II (440 ST1A 400 KV D/C
MW),
With Kotlibhel ST-IB
1. Kotlibhel-ST1B-Roorkee 400 KV D/C

With Kotlibhel ST-II


1. LILO Kotlibhel-st1B-Roorkee 2nd ckt at Kotlibhel-st
II 400 kV D/C

NR Evacuation System for 1. LILO one ckt Kuwari Pass-Pithoragarh line at


Vishnugarh Pipalkoti (400 MW) Vishnugarh Pipalkoti 400 kV D/C

NR Evacuation System for Lata 1. LILO of one ckt of Vishnuprayag-Muzzaffar Nagar


Tapovan (162 MW) D/C line at Kunwari Pass 400 kV D/C
2. Lata Tapovan-Kunwari Pass 220 kV D/C
NR Evacuation System for 1. Barsingsar-Nagaur 220 kV 2xS/C
Barsinghsar (250 MW) & 2. Barsingsar-Phalodi 220 kV S/C
Barsinghsar Extn. 250 MW 3. Barsingsar-Bikaner 220 kV S/C
NR Northern Region System 1. Establishment of 400/220 kV 2x315 MVA GIS at
Strengthening -VI Gurgaon by LILO of Samaypur-Bhiwadi 400 kV S/C
line
NR Northern Region System 1. Augmentation of Ludhiana S/S by 3rd 315 MVA
Strengthening -VII transformer
2. Augmentation of Wagoora S/S by 4th 315 MVA
transformer
NR Northern Region System 1. Establishment of 400/220 kV 2x315 MVA S/S at
Strengthening -VIII Bhinmal by LILO of both ckts of Kankorli-Zerdai 400
kV D/C line
2. Augmentation of Hissar S/S by 3rd 315 MVA
transformer
NR Northern Region System 1. Establishment of 400/220 kV S/S at Roorkee by
Strengthening -IX LILO of Rishikesh-Muradnagar 400 kV S/C
2. Opening of Roorkee-Muzzaffarnagar portion of
Roorkee-Muradnagar line from location near
Muzzaffarnagar and extending it to Meerut so as to
form Roorkee-Meerut 400 kV S/C line and Meerut-
Muzzaffarnagar S/C line (under Tehri stage-I)
NR Northern Region System 1. Kankroli-Jodhpur 400 kV S/C
Strengthening -X 2. Kota-Merta 400 kV D/C

NR Northern Region System 1. 400/220 kV 315 MVA 3rd Trf. at Amritsar (Aug.)
Strengthening -XI 2. 400/220 kV 315 MVA 3rd Trf. at Moga (Aug.)

Page 49 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

NR NR system Strengthening 1. Jullundhar-Amritsar 400 kV S/C-65 km


Scheem (formerly part of Tala 2. LILO of Bawana-Bhiwani 400 kV S/C at
Supplementary Scheme) Bahadurgarh-9 km
3. Establishment of 1x315 MVA 400/220 kV S/S at
Amritsar
4. Establishment of 1x315 MVA 400/220 kV S/S at
Bahadurgarh
5. Augmentation of Gorakhpur 400/220 kV S/S by
1x315 MVA trf.
NR System Strengthening Scheme 1. LILO of one ckt of Dhauliganga-Bareilly 400 kV D/C
in Uttaranchal (charged at 220 kV) at Pithoragarh
2. LILO of one ckt of Tanakpur-Bareilly 220 kV D/C
line at Sitarganj
3. Establishment of 6x33.3 MVA 220/132 kV S/S at
Pithoragarh
4. Establishment of 2x100 MVA 220/132 kV S/S at
Sitarganj
NR System Strengthening Scheme 1. Singrauli-suitable LILO point near existing
in Singrauli-Vindhyachal corridor Vindhyachal-Kanpur 400 kV S/C line 400 kV D/C.
The existing Vindhyachal-Kanpur 400 kV S/C line
would be opened up at LILO point and one end be
connected to one ckt going towards Kanpur and
other toward Vindhyachal
2. Diversion of existing Vindhyachal-Singrauli 132 kV
S/C line
NR NR- Strengthening (For 1. Gorakhpur-Lucknow (new) 400 kV D/C
increased import due to Tala 2. Lucknow (New)-Unnao 400 kV D/C
HEP) JV of PGCIL with TATA 3. Bareilly-Mandola 400 kV D/C
Power 4. LILO of Dadri-Samaypur 400 kV D/C line at
Maharani Bagh-2xD/C
5. Gorakhpur (new)-Gorakhpur (UP) interconnection
400 kV -D/C
6. Gorakhpur (new) 400/220 kV 315 MVA S/S with
2x63 MVAR L/R
7. Lucknow (New) 400/220 kV 315 MVA S/S
8. Maharani Bagh 400/220 kV 630 MVA S/S
9. Bareilly (new) 400/220 kV 315 MVA S/S with 2x50
MVAR L/R

Page 50 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Region Scheme/ Scheme Group Transmission System


WR Evacuation System for Sipat- ATS with Sipat-I (3x660 MW)
II+I (1000 + 1980 MW) 1. Sipat-Seoni 765 kV 2X S/C
2. Seoni-Khandwa 400 kV D/C (Quad AAAC)
3. Nagda-Dehgam 400 kV D/C
4. LILO of Korba-Raipur at Sipat 400 kV D/C
5. LILO of Bhilai-Satpura at Seoni 400 kV D/C
6. Seoni 765/400 kV 7x500 MVA and 400/220 kV 2x315
MVA s/s
7. Rajgarh 400/220 kV 2x315 MVA s/s by LILO of
both ckts of Sardar Sarovar-Dhule D/C line

ATS with Sipat-II (2x500 MW)


1. Khandwa-Rajgarh 400 kV D/C
2. Bina-Gwalior 765 kV S/C (initially op. at 400 kV)
3. Seoni 765/400 kV 3x500 MVA (Aug.)
4. Bhatapara 400/220 kV 2x315 MVA s/s by LILO of
Korba-Raipur line

Sipat-II Supplementary Tr. System


1. Seoni-Wardha 765 kV S/C (initially op. at 400 kV)
2. Wardha-Akola 400 kV D/C
3. Akola-Aurangabad 400 kV D/C
4. Wardha 400/220 kV 2x315 MVA s/s
WR Evacuation System for ATS with Gandhar-II
Kawas-II (725 + 575 MW) 1. Gandhar (NTPC)-Rajkot (GEB) 400 kV D/C
and Gandhar-II (725 + 575 2. Gandhar (NTPC)-Kawas 400 kV D/C
MW) 3. LILO of both circuits of Bina -Nagda 400 kV D/C line
at Shujalpur
4. Establishment of 2x315 MVA 400/220 kV substation
at Shujalpur

ATS with Kawas-II


1. Kawas-II-Vapi (PG) 400 kV D/C Quad
2. Vapi (PG)- Navi Mumbai 400 kV D/C
3. LILO of Kalwa-Pune (PG) 400 kV S/C line at Navi
Mumbai,
4. Vapi (PG)-Khadoli (DNH) 220 kV D/C
5. Establishment of 400/220 kV 2x315 MVA S/S at Navi
Mumbai (GIS in case adequate land is not available).
6. LILO of Apta-Kalwa and Kharghar-Kandalgaon 220
kV D/C lines at Navi Mumbai. (LILO works under
preview of MSEB, 220 kV bay provision at Navi
Mumbai by PGCIL)
7. Installation of 400/220 kV 1x315 MVA 3rd transformer
at Vapi

Page 51 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

WR Western Region For absorbing import in eastern and central part of WR


System Strengthening grid
Scheme -II 1. Seoni-Wardha 765 kV S/C (2nd ckt 400 kV
operation).
2. Raipur-Wardha 400 kV D/C with series compensation
of 25% fixed.
3. Bhadrawati-Parli (PG) 400 kV D/C
4. Wardha-Parli (PG) 400 kV D/C Quad
5. Parli (PG)-Parli (MSEB) 400 kV D/C.
6. Parli (PG)-Pune (PG) 400 kV D/C
7. LILO of Lonikhand-Kalwa 400 kV line at Pune (PG)
near Chinchwad)
8. Pune (PG)-Aurangabad 400 kV D/C
9. Powergrid 400/220 kV 2x315 MVA substation at
Pune.

For regional strengthening in southern Maharashtra


1. LILO of Sholapur-Karad at Sholapur (PG) 400 kV D/C
2. Sholapur (PG) 400/220 kV 2x315 MVA s/s.
3. Parli (PG)- Sholapur (PG) 400 kV D/C
4. Sholapur (PG)-Kolhapur 400 kV D/C

For regional strengthening in Gujarat


1. Rajgarh-Karamsad 400 kV D/C line with 25%
fixed series compensation
2. Limbdi-Ranchhodpura-Zerda 400 kV D/C.

For regional strengthening in northern Madhya Pradesh


1. Korba-Damoh-Bhopal 400 kV D/C.

WR Western Region 1. Powergrid 400/220 kV, 2x315 MVA substation at


System Strengthening Damoh.
Scheme -IV
WR Evacuation System for 1. LILO of Barwaha-Khandwa D/C at Omkareshwar
Omkareshwar (520 MW) 220 kV 2xD/C
2. Omkareshwar-Sanawad 220 kV D/C

Page 52 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Region Scheme/ Scheme Transmission System


Group
SR Evacuation System for 1. Kudankulam (NPC) – Tirunelveli (PG)
Kudankulam U1&2 400kv 2XD/C line-I & II (quad)
(2000 MW) 2. tirunelveli (pg) – udumalpet 400kv d/c line
3. Tirunelveli (PG) – Edamon (KSEB) 400kV
D/C line, (multi circuit line)
4. Edamon – Muvattupuzha(PG) 400kV quad
D/C line
5. Muvattupuzha – North Tricur (PG) 400kV
quad D/C line
6. LILO of both circuits of Madurai (PG) –
Trivendram (PG) 400kV D/C line at
Tirunelveli
7. 400/220kV S/S at Tirunveli, 2x315 MVA
8. 400/220kV S/S at Muvattupuzha, 2x315
MVA
9. Trivendram 400/220kV S/S Extn. – 3rd
1x315 MVA transformer
10. Udumalpet 400/220kV S/S Extn. – 3rd
1x315 MVA transformer
11. 2x63 MVAR bus reactor at Tirunveli and
1x63 MVAR bus reactor at Muvattupuzha
400 kV S/Ss
12. 1x63 MVAR line reactor at each end of
each circuit of Tirnuveli – Muvattupuzha
400kV D/C line
13. 1x63 MVAR switchable line reactor at
each end of each circuit of Tirnuveli –
Udumalpet 400kV D/C line
SR Evacuation System for 1. KPFBR – Kancheepuram 230kV D/C line
Kalpakkam PFBR (500 2. KPFBR – Arni 230kv D/C line
MW) 3. KPFBR – Sirucheri 230kV D/C line
4. KPFBR – MAPS 230kV S/C (with one
spare phase) Cable link

Page 53 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

SR Evacuation system for 1. Narendra (PG) – Davanagere (KPTCL)


Kaiga U3&4 (220 + 220 400kv D/C line
MW) 2. Mysore (PG) – Kozhikode (PG) 400kV D/C
line
3. Lilo of Kolar – Sriperumbudur (PG)
400kvVs/c at melakottaiyur (PG)
4. Melakottaiyur 400/220kV s/s 2x315 mva
5. Kozhikode 400/220kV S/S 2x315 mva
6. Hiriyur 400/220kv S/S extn- 1x315 mva
7. Narendra 400/220kV S/S bay extn.
8. Mysore 400/220kV S/S bay extn.
9. Davanagere 400/220kV S/S bay extn.
10. 1x50 mvar switchable line reactor at
melakottaiyur end of kolar –
sriperumbudur 400kV S/C line to be
LILOed at melakottaiyur

SR Evacuation System for 1. neyveli ts-ii expansion (nlc) – neyveli ts-ii


Neyveli TPS II (500 existing (nlc) 400kv 2xs/c line
MW) 2. neyveli ts-ii(nlc) – pugalur (pg) 400kv d/c
line
3. Pugalur (PG) – Madurai (PG) 400kV D/C
line
4. Udumalpet – Arasur (PG) 400kV D/C line
5. LILO of Neyveli – Sriperumbudur 400kV
S/C line
6. LILO of Ramagundam – Khammam 400kV
S/C line at Warangal (PG)
7. Pugalur 400/220kV S/S 2x315 MVA
8. Warangal 400/220kV S/S 2x315 MVA
9. Arasur 400/220kV S/S 2x315 MVA
10. Pondicherry 400/220kV S/S 2x315 MVA
11. Madurai 400/220kV S/S bay Extn.
12. Udumalpet 400/220kV S/S bay Extn.
13. 1x50 MVAR switchable line reactor for
each circuit, at Pugalur end of Neyveli –
Pugalur 400kV D/C line.

SR Evacuation System for 1. LILO of Tirunelveli-Muvathapuzha (Quad)


Kayamkulam II LNG at Kayamkulam 400 kV 2xD/C
(1950 MW) 2. Kozhikode-Trissur 400 kV D/C
3. Kayamkulam TPS 400/220 kV 2x315 MVA
S/S
4. Kayamkulam TPS-Kayamkulam 220 kV
D/C
SR For Talcher-II back-up TENTATIVE
in ER 1. Talcher-II – Rourkela 400 kVD/C
2. Baripada-Berhampur-Gazuwaka 400 kV
D/C

Page 54 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

SR Southern Region 1. LILO of Nagarjunasagar (AP)-Raichur 400


System Strengthening kV S/C line at Mehboobnagar (AP)
Scheme–IV 2. LILO of both the circuits of Nellore (AP)-
Sriprumbudur (TN) 400kV D/C line at
Alamatti 400 kV S/S (TN)
SR Southern Region 1. Augmentation of Transformer capacity by
System Strengthening 1x315 MVA at Munirabad, Cuddapah (AP),
Scheme–V Gooty(AP), Khammam (AP),
Gazuwaka(AP) and 3x167 MVA at Kolar
400 kV Substations
2. 1x80 MVAr Bus reactor at Nellore (AP)
400kV S/S
SR Southern Region 1. (LILO of both the circuits of Gazuwaka
System Strengthening (AP)-Vijayawada (AP) 400 kV D/C line at
Scheme–VI Vemagiri 400 kV S/S (AP)
2. 2nd 1x315 MVA 400/220kV Transformer at
Vijayawada (AP)
SR Southern Region 1. LILO of one circuit of Talaguppa-
System Strengthening Neelamangala 400kV D/C line at Hassan
Scheme–VII 2. Hassan 400/220 kV 2x315 MVA substation
3. LILO of one circuit of Madurai (TN)-Trichy
(TN) D/C line at Karaikudi (TN)
4. Karaikudi 400/220 kV 2x315 MVA
substation
SR Neelamangala-Mysore 1. Neelamangala-Mysore 400 kV D/C line
Transmission scheme 2. 400/220 kV 2x315 MVA S/S at Mysore

Page 55 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Region Scheme/ Scheme Transmission System


Group
ER Evacuation System for With North Karanpura:
North Karanpura (1980 1. North Karanpura – Sasaram 765kV S/C
MW) and Maithon RB line with 2x1500MVA, 765/400kV s/s at
(1000 MW) Sasaram
2. North Karanpura – Ranchi 400kV D/C line
3. North Karanpura – WR pooling Station
near Sipat 765kV S/C line with
2x1500MVA, 765/400kV s/s at WR pooling
station near Sipat
4. WR pooling station near Sipat – Sipat
765kV S/C line
5. WR pooling station near Sipat – Seoni
765kV S/C line

With Maithon RB:


1. Maithon RB-Maithon PG 400kV D/C line
2. Maithon RB – Ranchi 400kV D/C line
3. Biharsharif – Sasaram 400kV D/C line

With North Karanpura or Maithon RB for the


Northern Region:
1. Sasaram-Fatehpur 765kV S/C line
2. Fatehpur-Agra 765kV S/C line
3. 765kV Agra s/s, 2x1500 MVA 765/400kV
4. 765kV Fatehpur s/s, 2x1500 MVA
765/400kV & 2x315 MVA 400/220 kV
5. LILOs of Singrauli/Allahabad –
Kanpur/Mainpuri 400kv lines at Fatehpur.
6. Sasaram – Balia 400kV quad D/C

ER Evacuation System for 1. LILO of Kahalgaon – Patna 400kV D/C


Barh (1980 MW) quad line at Barh
2. Barh – Balia 400kV D/C quad line
3. Balia – Bhiwadi 2500 MW + 500kV HVDC
Bipole line
4. Seoni – Bina 765kV S/c line (to be initially
operated at 400kV)
5. Balia 400kV S/S extn
6. Bhiwadi 400kV S/S extn
7. Seoni 400kV S/s extn
8. Bina 400kV Sw. Stn. Extn.
9. Balia and Bhiwadi HVDC Converter
Stations

Page 56 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

ER Evacuation System for 1. Teesta Stage III – New Jalpaiguri, 220kV


Teesta Low Dam III &IV S/C line with Twin-Moose conductor.
(292 MW) 2. Teesta Stage III – Teesta Stage IV S/S,
220kV S/C line with Moose conductor.
3. Teesta Stage IV – New Jalpaiguri, 220kV
D/C line.
(These lines would be constructed by
WBSEB, as the whole of the power would
be absorbed by West Bengal.)
ER Evacuation System for 1. LILO of one ckt of Mangan-Melli 400 kV
Teesta IV (495 MW) D/C at Teesta IV
ER Evacuation System for 1. Existing system adequate
Farakka III (500 MW)
ER System Strengthening-I 1. Higher capacity conductr on Siliguri-Purnia
ER System Strengthening-II 1. Purlia-Jamshedpur 400kV D/C
2. Jamshedpur-Baripada 400kV D/C
3. Baripada –Mendhalsal (Bhuwanashwar)
400kV D/C
ER For Talcher-II back-up TENTATIVE
in ER 1. Talcher-II – Rourkela 400 kVD/C
2. Baripada-Berhampur-Gazuwaka 400 kV
D/C
ER Evacuation System for TENTATIVE
Bokaro (500 MW) 1. Bakaro-North Karanpura 400 kV D/C Quad
ER Evacuation System for TENTATIVE
Kodarma (500 MW) 1. Kodarma-Sasaram D/C 400 kV D/C Quad
ER Evacuation System for TENTATIVE
Hirma-II (2000 MW) 1. Hirma II-Raipur 400 kV 2xD/C (Quad)
2. Hirma-Sipat PP 2xD/C (Quad)

Page 57 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Region Scheme/ Scheme Transmission System


Group
NER Evacuation System for 1. LILO Ranganadi-Balipara at Biswanath
Kameng HEP (600 MW) Chariyali 400 kV 2xD/C
2. Kameng HEP-Biswanath Chariyali 400 kV
D/C
3. Biswanath Chariyali -Bongaigaon 400 kV
D/C
NER Evacuation System for 1. Ranganadi HEP I-Ranganadi HEP II 132
Ranganadi II (130 MW) kV S/C
2. LILO of Ranganadi HEP I-Ziro at
Ranganadi HEP II 132 kV D/C
NER Evacuation System for 1. Dikrong-Ranganadi HEP-I 132 kV D/C
Dikrong (110 MW)
NER Evacuation System for 1. Biswanath Chariyali to be developed as a
Subnasiri Lower HEP pooling station in NER
(2000 MW) 2. Subansiri – Biswanath Chariyali 400kV
2xD/C Quad lines.
3. Biswanath Chariyali – Agra, HVDC Bipole,
+/- 600kV, 4000 MW.
NER System Strengthening 1. 220kV and 132kV works for Aizwal,
Sch-I Dimapur, Kopili, Khandong

Page 58 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix- 2.9

STATES’ TRANSMISSION SCHEMES FOR THE XI PLAN EVACUATION SYSTEM


FOR GENERATION PROJECTS

States of Northern Region

Gen. Project State sector generation projects


Transmission scheme/proposal
HP
UHL-III • UHL-Bassi 132 kV D/C
(100MW) • UHL-Hamirpur D/C
KASHANG I & • LILO of Bhabha-Kunihar S/C at Kashang 220 kV D/C
II
(126MW)
SAINJ • Through Parbati Transmission system
(100 MW)
SHONGTONG • Shongtong Karcham-Karcham Pooling Station 400 kV D/C
KARCHAM • Karcham Pooling Station-NR load centers to be decided
(402 MW) after firming up of generation in the complex
HARYANA
YAMUNA • Yamuna Nagar TPS-Yamuna Nagar 220 kV 2xD/C
NAGAR U1&2 • Yammuna Nagar TPS-Tepla 220 kV D/C
(500 MW) • Yammuna Nagar -Ladwa 220 kV D/C
• Ladwa-Nissing 220 kV D/C
• Ladwa 220/132 kV 100 MVA S/S
UP
ANPARA C • Charging of Anpara-Unnao 765 kV S/C line at 765 kV
(1000 MW) • Anpara 765/400 kV 2x630 MVA S/S
• Unnao 765/400 kV 3x630 MVA S/S
ROSA • Rosa-Shahjahanpur 220 kV 2xS/C
(600 MW) • Rosa-Hardoi 220 kV D/C
• Rosa-Badaun 220 kV S/C
• Hardoi 220/132 kV 2x100 MVA S/S
RAJASTHAN
GIRAL U-1&2 • Giral-Barmer 220 kV D/C
(250 MW) • LILO Barmer-Amar Sagar at Giral 220 kV D/C
CHHBRA TPS • Chabra TPS-Swaimadhopur 400 kV D/C
(500 MW) • Swaimadhopur 400/220 kV 2x315 MVA S/S
KOTA U-7 • Step up generation voltage at 220 kV
(195 MW) • Split existing KTPS bus with U 6&7 on one section and rest
on other section
• KTPS 6&7 section-Kota (PG) 220 kV D/C with twin moose
UTTARANCH
AL

Page 59 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

TUINIPALASU • LILO one ckt Arakot Tuni-Mori at Tuinipalasu 220 kV D/C


(42 MW)
BAWALA • Bawala Nand Prayag – Karanpryag 132 kV D/C line
NAND
PRAYAG
(132MW)
PALAMANERI • LILO one ckt Lohari Nagpala-Tehri Poling Point at
(480 MW) Palamaneri 400 kV D/C

Gen. Project Private sector generation projects


Transmission scheme/proposal
HP
ALLAN • ALLAIN DHUANGAN – NALAGARH 220 KV D/C
DHUNGAN
(192MW)
KARCHAM • LILO OF BASPA – NATHPA JHAKRI D/C LINE AT
WANGTOO KARCHEM WANGTOO
(1000MW) • KARCHEM WANGTOO – ABDULLAPUR 400 KV D/C
• BEYONG ABDULLAPUR TR. SYSTEM HAS TO BE
EVOLVED
DHAMVARI • DHAMWARI SUNDA - MALIANA 2XS/C+D/C
SONDA
(70MW)
SAWARA NOT YET IDENTIFIED
KUDDU
(110 MW)
Punjab
GOVINDWAL • GOINDWAL-TATHASAHIB 220 KV D/C
SAHEB • GOINDWAL-TARNTARAN 220 KV D/C
(500 MW) • LILO OF JAMSHER-VERPAL D/C AT
GOINDWALSAHIB-220 KV 2XD/C
• GOINDWAL 220/132 KV 100 MVA S/S
UTTRANCHAL

VISHNU NOT YET IDENTIFIED


PRAYAG (400
MW)

Page 60 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

States of Western Region

Gen. Project State sector generation projects


Transmission scheme/proposal
GUJARAT
UTRAN CCGT • UTRAN-KOSAMABA 220 KV 2XD/C
(350MW)
PAGUTHAN •
PAGUTHAN-KASOR 400 KV D/C
(350+700 MW) •
PAGUTHAN-FEDRA 400 KV D/C

SYSTEM STRENGTHENING BELOW FEDRA 400 KV S/S
YET TO BE IDENTIFIED BY GETCO
Sikka Repl. Ext. TRANSMISSION SYSTEM YET TO BE IDENTIFIED
(500MW)
Surat Lignite TRANSMISSION SYSTEM YET TO BE IDENTIFIED
Ext. (250MW)
MP & GUJ.
MALWA TRANSMISSION SYSTEM YET TO BE IDENTIFIED
(1000 MW)
MAHARASHTRA
PARLI EXT. • LILO OF BOTH CKTS OF PARLI-BEED D/C LINE AT
STAGE-II PARLI EXTN. 220 KV 2XD/C
(250 MW) • LILO OF NANDED-GIRWALI LINE AT PARLI EXTN. 220
KV D/C
PARAS EXT. U- • LILO OF BOTH CKTS OF AKOLA-CHIKLI D/C LINE AT
II PARAS EXTN. 220 KV 2XD/C
(250 MW) • PARAS EXTN.-AKOLA 220 KV D/C
KHAPER • LILO OF CHANDRAPUR-KORADI S/C LINE AT
KHEDA KHAPERKHEDA 400 KV D/C
EXT (500MW) • KHAPERKHEDA 400/220 KV 1X315 MVA S/S
• KHAPERKHEDA II- KHAPERKHEDA 220 KV D/C
CHHATISGARH
KORBA WEST • KORBA (W)-BHILAI (KHEDAMARA) D/C KORBA (W)-
EXT (600MW) BHILAI (KHEDAMARA) 400 KV D/C
• BHILAI (KHEDAMARA)-RAJNANDGARH 220 KV D/C
• BHILAI (KHEDAMARA)-BEMATARA 220 KV D/C
• RAJNANDGAON 220/132 KV 1X160 MVA S/S

Page 61 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

MARWA • MARWA-RAIPUR (NEW) 400 KV D/C


(1000 MW) • LILO OF KORBA-KHEDAMARA S/C AT MARWA 400 KV
D/C
• MARWA 400/220 KV 1X315 MVA S/S
• RAIPUR (NEW) 400/220 KV 1X315 MVA S/S
• MAHASAMUND-GURUR 220 KV D/C
• RAIPUR (NEW)-DOMA 220 KV D/C
• RAIPUR (NEW)-SILTARA 220 KV D/C
• RAIPUR (NEW)-URLA 220 KV D/C
• RAIPUR (NEW)-MAHASAMUND 220 KV D/C
• MARWA-MOPKA 220 KV D/C
• DOMA 220/132 KV 1X160 MVA S/S
• DOMA (220 KV)-KACHNA 132 KV D/C
• DOMA (220 KV)-KURUD 132 KV D/C
MATNAR • EVACUATION AT 132 KV LEVEL
(60 MW)
BODHGHAT • BODHGHAT (BARSOOR)-KHEDAMARA 400 KV D/C
(500 MW)
IGTPP • BHAIYATHAN-BILASPUR 400 KV D/C
BHAYTHAN • BILASPUR-RAIPUR 400 KV D/C
(1320 MW) • BHAIYATHAN-BISHRAMPUR 220 KV D/C
• BILASPUR-MOPKA 220 KV D/C
• BHAIYATHAN-PENDRAROAD-BAIKUNTHPUR 220 KV
D/C
• MOPKA-MUNGELI 220 KV D/C
• BHAIYATHAN 400/220 KV 1X315 MVA S/S
• BILASPUR 400/220 KV 1X315 MVA S/S
• MUNGELI 220/132 KV 1X160 MVA S/S
• BAIKUNTHPUR 220/132 KV 1X160 MVA S/S
• MUNGELI (220 KV)-MUNGELI 132 KV D/C
• BAIKUNTHPUR (220 KV)-BAIKUNTHPUR 132 KV D/C
PRIVATE SECTOR GENERATION PROJECTS
GUJARAT
AKHAKHOL- • LILO OF KAWAS-GANDHAR 400 KV D/C AT AKHAKHOL
PAGUTHAN • AKHAKHOL-DEHGAM 400 KV D/C
(730MW)
ESSAR-HAZIRA TRANSMISSION SYSTEM YET TO BE IDENTIFIED
EXT. (1460MW)
BHAVNAGAR TRANSMISSION SYSTEM YET TO BE IDENTIFIED
(NIRMA JV)
(250 MW)
MAHARASHTRA
VILE-TATA TRANSMISSION SYSTEM YET TO BE IDENTIFIED
(1000 MW)

Page 62 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

CHHATISGARH
RAIGARH TRANSMISSION SYSTEM YET TO BE IDENTIFIED
(750MW)
PATHDI TPS- TRANSMISSION SYSTEM YET TO BE IDENTIFIED
LANCO
(1200MW)
MP

MAHESHWAR • Maheshwar-Pithampura 220 kV D/C


(400MW) • Maheshwar-Rajgarh 220 kV D/C
• Maheshwar-Julwania 220 kV D/C

States of Southern Region

Gen. Project State sector generation projects


Transmission scheme/proposal
AP
VIJYAWADA • VTPS - Yeddumailaram 400kV D/C
TPP • VTPS - Narasaraopeta 400kV D/C
(660MW) • Tadikonda - Narasaraopeta 400kV S/C
• 1x315 MVA, 400/220 kV Transf at VTPS switchyard
JAURALA • Jurala HEP- Mehboobnagar 220kV D/C
PRIYA
(195MW)
N. SAGAR TP • Existing system
DAM (50MW)
KARNATAKA
BIDADI YET TO BE IDENTIFIED
(1400MW)
NAGARJUNA • Nagarjuna TPP-Hassan 400 kV D/C
TPP • Hassan-Bidadi 400 kV D/C
(1015 MW) • LILO 2nd ckt Talaguppa-Neelamangla at Hassan 400 kV
D/C
RAICHUR U-8 • Existing system adequate
(210 MW)
BELLARY YET TO BE IDENTIFIED
EXT.
(500 MW)
GUNDIA EXT. YET TO BE IDENTIFIED
(300 MW)
KERALA
ADIRAPALLI YET TO BE IDENTIFIED
(163MW)

Page 63 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

TAMIL NADU
BHAWANI • Existing system adequate
KATHLAI U2
(60MW)

Gen. Project Private sector generation projects


Transmission scheme/proposal
AP
BHOPALPALLI YET TO BE IDENTIFIED
(500MW)

States of Eastern Region


Gen. Project State sector generation projects
Transmission scheme/proposal
WEST BENGAL

PURULIA PSS • Purulia-Bidhannagar 400 kV D/C


(225+675 MW) • Purulia-Arambag 400 kV D/C
SAGARDIGHI-II • LILO of Farakka-Jeerat-Subhashgram 400 kV S/C at
(1000MW) Sagardighi TPS.
• Sagardighi TPS-Durgapur 400 kV S/C

BAKRESHWAR • Existing 400kV and 220kV transmission system will be


U5 (210MW) adequate.
DPL TPS • DPL-Durgapur 400 kV D/C
(500 MW)
BAKRESHWAR • Bakreshwar-Jagatballavpur 400 kV S/C
U6 • Jagatballavpur 400/220 kV 2x315 MVA S/S
(210MW) • Jagatballavpur-Domjur 220 kV D/C
Katwa TPP • Katwa-Maithon 400 kV D/C
(1000 MW)
JHARKHAND
TENUGHAT • Tenughat TPS-Ranchi 400kV D/C-200ckms.
EXT • Existing TenughatTPS-Biharsariff 400kV S/C line will
(630MW) be charge at 400 kV.

Page 64 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Gen. Project Private Sector Generation Projects

ORISSA
IB STAGE-II • IB TPS-Meramundali 400 kV D/C – 400kV operation.
U5&6 (THE LINE IS TO BE INITIALLY OPERATED AT
(2X250MW) 220KV UNDER STAGE-I. THE LINE IS UNDER
CONSTRUCTION)
JORDA • Jorada Nuelpoi-Ib TPS 400 kV D/C
NUELPOI, CESC
(500 MW)
AURANGA TPP, • Auranga TPP-Maithon (PG) 400 kV D/C
TATA POWER
(1000 MW)
WEST BENGAL
BUDGE BUDGE • Existing system adequate
EXTN.
WB+CESC JV
(250 MW)

States of North-Eastern Region


Gen. Project State sector generation projects
Transmission scheme/proposal
ASSAM
LAKWA W. H. • EXISTING SYSTEM ADEQUATE
(38 MW)
MEGHALYA
MYNTDU • MYNTDU-KHLIEHRIAT 132KV D/C LINE.
STAGE-I
(84MW)

Gen. Project Private Sector Generation Projects


TRIPURA
TRIPURA GAS • TRIPURA GAS-SILCHAR 400 KV D/C QUAD
ONGC • SILCHAR-BONGAIGAON 400 KV D/C QUAD
(1050MW) • BONGAIGAON-SILLIGURI 400 KV D/C QUAD
• PURNEA-BIHARSHARIF 400 KV D/C QUAD
• TRIPURA GAS 400/132 KV SWITCHYARD AND 132 KV
LINES TO GRID
• SILCHER 400/132 KV S/S AND 132 KV LINES TO GRID

Page 65 of Chapter 2
Transmission Planning & National Grid Working Group on Power for 11th Plan

Appendix-2.10

STATE-WISE DETAILS OF NORMATIVE ASSESSMENT

REGION
STATE
Peak Peak Increase Projected Additional Normative Investment Total
Demand Demand in peak population in demand Investment needed in States' investment
level 2006- 2011-12 at demand 2012 growth to needed in 220,132,66kV needed in
07 at start end of XI during the come up to States' System for States'
of XI Plan Plan XI Plan atleast 50% 220,132,66kV accelerated 220,132,66kV
period of National System for growth to come System
average trend growth up to 50% of
National average

Number in
MW MW MW MW Rs Crores Rs Crores Rs Crores
crores

0.50 0.60 0.60


Northern
Delhi 3900 5665 1765 1.90 0 1059 0 1059
Haryana 4200 6101 1901 2.59 0 1140 0 1140
Himachal Pradesh 800 1162 362 0.68 0 217 0 217
Jammu and Kashmir 1600 2324 724 1.19 0 434 0 434
Punjab 7700 11184 3484 2.80 0 2091 0 2091
Rajasthan 5000 7263 2263 6.89 0 1358 0 1358
Uttar Pradesh 7800 11330 3530 20.43 1909 2118 1146 3263
Uttranchal 1000 1453 453 1.01 0 272 0 272
Chandigarh 220 320 100 0.15 0 60 0 60

Northern Region 32220 46800 14580 38 8748 1146 9894


NR Peak With Diversity 30981 45000 14019

Western
Chhattisgarh 1900 2805 905 2.46 0 543 0 543
Goa 70 103 33 0.18 13 20 13 33
Gujarat 11000 16242 5242 5.98 0 3145 0 3145
Madhya Pradesh 7000 10336 3336 7.33 0 2001 0 2001
Maharastra 16500 24362 7862 11.42 0 4717 0 4717
Dadar & Nagar Haveli 400 591 191 0.04 0 114 0 114
Daman & Diu 250 369 119 0.03 0 71 0 71

Western Region 37120 54808 17688 27 10613 13 10626


WR Peak With Diversity 35692 52700 17008

Southern
Andhra Pradesh 9500 13317 3817 8.55 0 2290 0 2290
Karnataka 6800 9532 2732 6.00 0 1639 0 1639
Kerala 2900 4065 1165 3.48 0 699 0 699
Tamil Nadu 8000 11215 3215 6.79 0 1929 0 1929
Pondicherry 250 350 100 0.15 0 60 0 60

Southern Region 27450 38480 11030 25 6618 0 6618


SR Peak With Diversity 26394 37000 10606

Eastern
Bihar 1200 2224 1024 9.90 4191 615 4191 4806
DVC 1800 3337 1537 2.00 0 922 0 922
Jharkhand 700 1298 598 2.19 122 359 122 480
Orissa 2600 4820 2220 4.11 0 1332 0 1332
Sikkim 60 111 51 0.06 0 31 0 31
West Bengal 4300 7971 3671 8.03 0 2202 0 2202

Eastern Region 10660 19760 9100 26 5460 4313 9773


ER Peak With Diversity 10250 19000 8750

Page 66 of Chapter 2
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Chapter- 3

DISTRIBUTION INCLUDING VILLAGE AND HOUSHOLD


ELECTRIFICATION

3.0 OVERVIEW

Distribution is the key segment of electricity supply chain. The distribution sector
caters to rural and urban areas. Rural distribution segment is characterized by wide
dispersal of net work in large areas with long lines, high cost of supply, low paying
capacity of the people, large number of subsidized customers, un-metered flat rate
supply to farmers, non metering due to high cost and practical difficulties, low load
and low rate of load growth. Urban distribution is characterized by high consumer
density, and higher rate of growth of load. The consumer mix in urban areas is
mostly commercial, residential, and industrial, whereas consumer mix in rural areas
is mainly agriculture and residential. Both segments are distinct with different
problems and issues. Electricity Act 2003 has recognized Rural Electrification as a
separate entity.

The biggest challenge of the power sector is the high T&D losses. A combination of
technical and non-technical factors is contributing to high Transmission and
Distribution losses. Lack of consumer education, political interference, and inefficient
use of electricity is further aggravating the problem. As T&D loss figures did not
capture the gap between the billing and the collection, the concept of Aggregate
Technical & Commercial (AT&C) loss was introduced in 2001-2002 to capture total
performance of the utility.

The AT&C losses are presently in the range of 18% to 62% in various states. The
average AT&C loss in the country is at 34%. There is wide variation of losses among
the states and variation among the Discoms within the states. The major portion of
losses are due to theft and pilferage, which is estimated at about Rs.20, 000 crore
annually. Apart from rampant theft, the distribution sector is beset with poor billing
(only 55%) and collection (only 41%) efficiency in almost in all States. More than 75-
80% of the total technical loss and almost the entire commercial loss occur at the
distribution stage. It is estimated that 1% reduction in T&D losses would generate
savings of over Rs.700 to Rs.800 crores. Reduction of T&D loss to around 10% will
release energy equivalent to an additional capacity of 10,000-12,000 MW.

Page 1 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Table 3.1
State-wise AT&C Losses
Less than 20% Between 20-30% Between 30-40% Above 40%
Goa Andhra Pradesh Karnataka Delhi
Tamil Nadu Gujarat Kerala Uttar Pradesh
West Bengal Assam Bihar
Himachal Pradesh Rajasthan Jharkhand
Maharashtra Haryana Madhya Pradesh
Tripura Meghalaya Arunachal Pradesh
Punjab Chhattisgarh Manipur
Uttaranchal Mizoram Nagaland

The Sub-transmission and Distribution systems have been the thrust areas during
10th Plan. The reduction of AT&C losses with improvement of quality and reliability
were given special attention during the 10th Plan. In line with this, Accelerated Power
Development and Reform Programme was launched with thrust on AT&C loss
reduction through techno-commercial interventions to achieve commercial viability.
For rural areas Rajiv Gandhi Grameen Vidyutikaran Yojna has been launched in April
2005 with 90% grant to achieve 100% electrification of villages.

3.1 KEY ISSUES IN ELECTRICITY DISTRIBUTION SECTOR

The problems in Distribution sector have accumulated over the years mainly due to
lack of investment, commercial orientation, excessive T&D losses, distorted tariff
policies etc. Following are the key issues / key factors effecting overall performance
of the distribution sector:

3.1.1 State Government related

Uncertain commitment of State Governments is key impediment to the ongoing


reform process. This includes delay in unbundling and restructuring of State
Electricity Boards, minimal/no financial support to unbundled utilities during transition
period, inadequate financial support for providing subsidised power to domestic and
agricultural consumers, inadequate administrative support in curbing theft of power
etc. Frequently changing policies of the State Governments in regard to
subsidies/free power to farmers adversely affecting the revenue recovery and cost
coverage of utilities.

3.1.2 Regulatory process related issues

SERCs are inadequately staffed with poor infrastructure. Due to lack of competency
and resources in Discoms, tariff filings are often delayed. In several cases, SERC
asks Discoms to revise their filings on account of data gaps or improper information.

There is no central repository of data in electronic form which leads to delay in filing
petitions and responding to queries from the regulator. The distribution licensees
have not been able to fully implement regulations and directives due to various
reasons like lack of skilled human resources, resource constraints or inadequate
training/awareness.

Page 2 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.1.3 Corporate governance and institutional issues

Most of the distribution companies formed as a result of unbundling of SEB are still
not fully autonomous. In many cases, unbundling is limited to operational and
technical segregation. Segregation of accounts, cash flow, human resources is not
complete. Successor companies are highly dependent on their parent company (i.e.
residual SEB or single buyer/trade co or Transco) for financials/cash flow, human
resources, investment decisions and other administrative matters and therefore, the
focus on efficiency improvement from respective entities is lacking.
Due to in-adequate network expansion commensurate with load growth, many power
transformers, distribution transformers, 33kV lines and 11kV feeders are overloaded.
Reinforcement of existing network in the form of new transformers, new lines and
augmentation of existing transformers and lines is poor. Most of the distribution
networks in India are quite old which results in to reduced reliability, increased R&M
expenses and poor quality of supply. The system also suffers low HT/LT ratio.
The consumer awareness about Demand Side Management (DSM) is limited which
results in to higher consumption and increased losses. DSM initiatives such as local
reactive power compensation, use of energy efficient devices, Time of Day tariff, use
of renewable sources etc. are lacking.

3.1.4 Commercial issues

Commercial losses are primarily due to improper energy accounting and billing
processes, faulty metering, under-billing, theft and pilferage of energy and lack of
accountability within the organization. Commercial losses are estimated at about Rs.
26,000 crore during 2000-01 and theft of electricity is estimated to cost the country at
about Rs. 20,000 crore per year (Source: MoP). The chart shows overall T&D losses
in India.
40
35
30
% Losses

25
20
15
10
5
0
FY 92 FY 94 FY 96 FY 98 FY 00 FY 02 FY 04
Source: MoP Presentation July 19, 2005

Only 87% of the total consumers in India are metered (Source: Mop, 2004-05). Many
states have undertaken 100% metering programs, but not yet completed. The chart
below indicates consumer metering level in some of the states. This does not include
defective meters.

Page 3 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Consumer metering till FY 05


100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
AP MP Raj. UP Mah Kar
States All India
High AT&C losses are due to high T&D losses coupled with low collection efficiency.
Low level of collection is attributable to lack of employees accountability, inadequate
collection facilities, limited usage of advanced systems and technology (e.g. payment
through ECS, credit/debit cards, special centres like e-Seva centres), billing errors,
political/administrative interference etc. The chart below shows level of collection
efficiency in select Discoms.

Collection Efficiency (%) (2004-05)


99.7% 99.5% 96.7% 97.0%
100% 90.0% 91.3% 92.4% 94.8%

78.5%
80%
62.3% 60.3%
60%

40%

20%

0%
CPDCL

EPDCL

NPDCL
BRPL

BYPL

NDPL

SPDCL
Agra

Varanasi
Meerut
Lucknow

Delhi Uttar Pradesh Andhra Pradesh

Source: PFC Report on Performance of the State


Power Utilities for the Years 2002-03 to 2004-05

3.1.5 Operational issues

Due to inadequate metering and data collection system in place, utilities have not
been able to conduct energy audit, which is crucial for any energy business.
Discoms do not have proper load monitoring and control mechanisms (e.g. SCADA,
Distribution Control Centre, telecommunications etc.), which results in to haphazard
control of the demand and often leads to loss of revenue and inconvenience to the
consumers.

3.1.6 Human resources and training issues

In many of the state owned utilities, recruitment has been either stopped or restricted
since last 15 years. Average age of employee in most SEBs is more than 50 years.
Lack of fresh talent and domain expertise (e.g. in area of IT, communication, SCADA)
impedes development of the sector and efficiency improvement. Induction of new
technology in the field and office level also needs proper training for staff for efficient

Page 4 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

handling. Discoms need to undertake training need analysis and roll out training
programmes for employees working in different areas. In a typical SEB, ratio of field
staff to support/office staff is 54:46. However, customer facing staff is inadequate.
Also, ratio of meter readers to consumers on the other hand ranges from 1:3000 to
1:7000.

No. of Distribution Em ployees per lakh


consum ers
400

300

200
100

Rajasthan
AP

UP

MP

Orissa

Assam
Source: Companies Annual
Report for FY'05

Productivity of the employees: The chart below shows some of the key parameters
of select entities / state to assess productivity of the employees in distribution sector.
(Note: Pink bar indicates private player, blue bar indicates government owned
Distribution Company) (Source: Websites/Tariff Orders of respective utilities)

Private players Versus State owned


300 1.200

250 1.000
Rs./Unit and MU/Employee
Rs Thousands

200 0.800

150 0.600

100 0.400

50 0.200

0 0.000
Orissa
NDPL

AP

UP

MP
Yamuna

Rajdhani
BSES

BSES

Expense per employee Expense per unit sold


MU sold per employee

3.1.7 Technological issues

Many of the distribution utilities in India are still lacking most basic requirements –
consumer database and asset database which can be addressed through IT and
communication solutions. Utilities do not have complete record of all consumers,
which results in to direct revenue loss. Most utilities maintain manual records of
consumers (in the form of register) especially in rural areas. Electromechanical
meters, manual reading of meters, manual bill preparation and delivery and
inadequate bill collection facilities result in to overall delay in revenue collection and
revenue leakage. Conventional complaint handling process results in delayed
redressal and increased dissatisfaction among customers.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Regular monitoring and testing of critical assets such as 11kV feeders, 11/0.4kV
distribution transformers and 415V feeders etc. are very important in ensuring reliable
supply. Monitoring of consumer energy metering systems is critical to overall
revenue. Asset database is crucial in efficient management of assets and claiming
depreciation under annual revenue requirement.
Almost all distribution companies do not have real-time monitoring system and
typically use phone or radio communication for demand management. Most Discoms
do not have distribution control centre which can manage load shedding and
instructions from SLDC. Discoms need to plan implementation of SCADA in long
term keeping in view capital cost and benefits.

3.2 DISTRIBUTION REFORMS

3.2.1 In the power sector reform process, the significant initiatives during 10th Plan
are enactment of Electricity Act 2003, notification of National Electricity Policy, Tariff
Policy and Rural Electrification Policy. Distribution segment was identified as the key
area for reform for putting the sector on the right track. Distribution Reforms involve
System up-gradation, Loss reduction, Theft control, Consumer orientation,
Commercialization and adoption of I T.

3.2.2 Six Level Intervention Strategy

In order to achieve commercial viability, Ministry of Power has formulated a six level
intervention strategy that encompasses initiatives at national level, state level, SEB/
utility level, distribution circle level, feeder level and consumer level as part of
distribution reforms. These are:

i) National level intervention-Relates to policy, legislation frame work, uniform


standards, energy conservation, accounting etc.
ii) State level intervention-Formation of SERCs, issuance of regular tariff order,
providing legislative support, removal of Tariff anomalies, subsidies and
budgetary support.
iii) SEB level intervention-Restructuring, accountability, commercial accounting,
integrated MIS, benchmarking of parameters, Grid discipline and TOD
metering.
iv) Distribution Circle level intervention-in the billing, reducing energy handling
cost, circle to function as independent business unit
v) Feeder level intervention-100% metering at 11 kV feeder, total accounting of
energy & quality power supply
vi) Consumer level intervention-Mandatory metering including billing, consumer
satisfaction & energy conservation.

3.3 NEW LEGAL AND POLICY FRAMEWORK

3.3.1 Electricity Act 2003

Electricity Act-2003 was notified in June 2003 with Competition, Protection of


Consumers interests & Power for all Areas, as objectives. The Act provides liberal
framework for power development and creates competitive environment to facilitate
private investment. It has de-licensed generation and in rural areas, stand alone

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

generation and distribution has been de-licensed. It provides for multiple licensing in
Distribution and stringent provisions for controlling theft of electricity. It obliges states
to restructure Electricity Boards. The Regulatory Commissions will determine tariffs.
It provides for open access in Transmission from outset and open access in
Distribution to be allowed by State Electricity Regularity Commissions (SERCs) in
phases. The cross subsidies will have to be gradually phased out. Trading has
become a distinct licensed activity to promote development of electricity market.
Electricity Act-2003 provides for notification of National Electricity Plan by Central
Electricity Authority for short-term framework of 5 years while also projecting a 15-
year perspective.

3.3.2 Energy Conservation Act, 2001

Energy Conservation Act was enacted on October 1, 2001. The Act lays down
concrete measures to ensure efficient use of energy and its conservation. The Act
came into effect on March 1, 2002. The Bureau of Energy Efficiency (BEE) has been
set up to make wide ranging regulations to further the objectives of the Act. The
Central and State Governments have been empowered to facilitate and enforce
efficient use of energy and its conservation.

3.4 POLICY INITIATIVES

In compliance with provisions of the Electricity Act 2003, National Electricity Policy,
National Tariff Policy and National Rural Electrification Policy as have been notified
by the Ministry of Power.

3.4.1 National Electricity Policy (2005)

The National Electricity Policy aims at laying guidelines for accelerated development
of the power sector, providing supply of electricity to all areas and protecting interests
of consumers and other stakeholders. The policy envisages multi-year tariff; private
sector participation in distribution, open access in distribution, segregation of
technical and commercial losses through energy audits, standards for reliability and
quality of supply in line with an international practice by year 2012, implementation of
modern information technologies system on priority basis with special emphasis on
consumer indexing and GIS mapping, promotion of HVDS system, sub-station
automation and effective implementation of anti theft provisions of Electricity Act
2003.

3.4.2 The National Tariff Policy (2006)

The National Tariff Policy has been notified in January 2006. As per the policy all
future requirement of power needs to be procured competitively by distribution
licensees except in cases of expansion of existing projects or where there is a State
controlled/owned company developer. It provides framework for performance based
cost of service regulation in respect of aspects common to generation, transmission
as well as distribution. Multi-year tariff framework is to be adopted for tariff to be
determined from April 1, 2006. The policy envisages suitable performance norms of
operations with incentives and dis-incentives along with appropriate arrangement for
sharing the gains of efficient operations with the consumers. Electricity is to be made
available for 24 hours particularly for those consumers who are willing to pay tariff

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

which reflects efficient costs. The policy emphasizes giving subsidy in transparent
and targeted manner and the cross subsidies for different consumers should be
brought within the range of +20% of average of the supply by the end of the year
2010-2011. The tariff fixation should ensure sustainable use of ground water
resources. The cross subsidy surcharge to be computed in a way so that open
access becomes a reality.

3.4.3 Rural Electrification Policy (2006)

The Rural Electrification Policy envisages provision of access to electricity to all


households by the year 2009 and minimum lifeline consumption of 1 unit per
household per day as merit good by year 2012, promotion of decentralized
distribution generation, rural electrification plan by State Governments to achieve the
goal of providing access to all households, setting up of the District Committees,
implementation of Franchisee system as mandated by RGGVY for distribution
management, If state Government / SERC decides to permit licensee to use assets
created with subsidy the benefit of capital subsidy to be passed on to consumers.
Government of India to evolve model schemes in consultation with NABARD and RBI
to encourage widespread participation by lending community in RE initiatives, Energy
efficiency to be promoted as mass campaign in rural areas. Government of India
should evolve programmes for encouraging use of economically viable energy
efficient farm equipment – irrigation pumpsets and use of IT for supply of electricity
should be encouraged.

3.4.4 Integrated Energy Policy (IEP)

Some of the important recommendations relate to the following areas:

• Transparent and targeted subsidies;


• Improved efficiencies.
• On the power sector the key high priority recommendations of the energy policy
relate to power sector reforms to focus on controlling aggregate technical and
commercial losses of the transmission and distribution utilities. In order to
reduce AT&C losses the Committee recommended APDRP to be restructured
to ensure energy flow auditing at the distribution transformer level through
• Automated meter reading, Geographical Information System (GIS) mapping of
the network & consumers and separation of feeders for agricultural pumps.

• Investment in developing a Management Information System (MIS) that can


support a full energy audit for each distribution transformer is essential for
reduction in AT&C losses. This will also fix accountability and provide a
baseline which is an essential prerequisite to management reform and/or
privatization.

• Introduce time-of-day pricing with shift to electronic meters.

• For all loads above say 50 kWh, introduce intelligent meters that permit real
time and remote recording of data and allow remote control over the power

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

supplied by each meter. This would help effective management of connected


load and the reported pilferage by large consumers.

• The improvements listed above and the base line data generated as a result
would bring greater transparency in the process of privatization (if pursued) and
provide a better estimate of the transition funding needs under outcome driven
privatization models that seek to restore the viability of distribution.

• All central assistance to state governments for the power sector must be
linked exclusively to loss reduction and improved viability.

• The restructured APDRP can, in the very least, help create an authentic base
line. The revised APDRP will provide incentives to State Electricity Boards
(SEBs) that are linked to performance outcomes and will also include incentives
to staff for reduction in AT&C losses.

• The Committee also recommended that liberal captive and new captive regime
foreseen under the Electricity Act 2003 be realized to derive economic benefits
from availability of distributed generation. It will also set competitive wheeling
charges to supply power group to captive consumers. This will pave the way for
open access to distribution networks. To achieve these objectives, the
Committee feels that it is essential to separate the cost of pure wire business
carriage to energy business content in both transmission and distribution at
different voltages. The wires business within the distribution segment is also a
natural monopoly and must be regulated.

• The Committee recommended introduction of availability based tariffs (ABT) for


intra-state sales and upgradation of state load dispatch centres to the technical
level of regional load dispatch centres.

• Committee recommended that gross subsidy surcharge; wheeling charge and


back-up charges are set properly to make the utilities viable after high value
paying customers migrated to new suppliers due to Open Access. These
charges need to be periodically revised and independently regulated.

• Committee recommended that the regulators should set Multi Year Tariff.

• To make RGGVY sustainable the committee recommended that, a business


plan with a viable revenue model needs to be elaborated. A clear pricing and
subsidy policy and the mission’s target to be announced soon and the
franchisees should run the local network.

• The Committee suggested generation of electricity through wood gasifier or by


burning surplus bio-gas from the community bio-gas plants. Such distribution
generators may be able to take electricity to villages sooner than the grid and
tariff should be formulated for such distributed generation for both household
and productive uses including agriculture.

• The Committee has emphasized energy efficiency and demand side


management. The Committee feels that with an aggressive pursuit of energy
efficiency and conservation, it is possible to reduce India’s energy intensity up

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

to 25% from the current level. Some of the recommended initiates of the
Committee for quick yield returns are as follows:

¾ Regulatory commissions can allow utilities to factor EE/DSM expenditure


into the tariff.
¾ Each energy supply company/utility should set up an EE/DSM cell.
¾ All utilities should introduce TOD tariffs for large industrial and
commercial consumers to flatten the load curve. Utilities should support
load research to understand the nature of different sectoral load profiles
and the price elasticities of these loads between different time periods to
correctly assess the impact of differential tariffs during the day.
¾ Enforce mandatory purchase of electricity at fixed prices from co
generators (at declared avoided costs of the utility) by the grid to
encourage cogeneration.
¾ Improving efficiency of industrial, municipal and agricultural water
pumping.
¾ Instituting an efficient motors programme. This initiative should focus on
manufacturers/rewinding shops and target market transformation, by
providing incentives to supply energy efficient motors.
¾ Instituting an efficient boiler programme.
¾ Promoting Solar Hot Water Systems. This programme should aim at
both industrial and household needs of hot water.
¾ Undertaking efficient lighting initiative.
¾ Making energy audits compulsory for all loads above 1 MW
The Group agrees with recommendations of the IEP and some of the implementation
strategies are contained in this report.

3.5 DISTRIBUTION OF POWER IN URBAN AREAS

3.5.1 Accelerated Power Development and Reforms Programme (APDRP)

Accelerated Power Development Programme (APDP) programme is part of the six


level intervention strategies for accelerating distribution reforms. In 2001, the
Government of India introduced the Accelerated power development programme
(APDP), with the objective of initiating a financial turnaround in the performance of
the State owned power sector. The Programme was formulated to finance specific
projects for up-gradation of sub-transmission and distribution (ST&D) network and
Renovation and Modernization R&M) of power projects (Thermal & Hydro). During
the year 2000-01 and 2001-02, the Government has provided budgetary allocation of
Rs.1000 crore and Rs.1500 crore respectively to the State Governments as
Additional Central Assistance under APDP. In 2000-01 project costing Rs.1456.78
crore were sanctioned and the Government released Rs.786.29 crore in one
installment. The utilities have utilized Rs. 1306.57 Crore.

In the year 2002-03 the programme was rechristened as Accelerated Power


Development and Reforms Programme (APDRP) and the assistance was linked to

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

reforms. Initially the programme covered 63 distribution circles including 3 circles in


Delhi out of the 400 distribution circles in the country. Later the focus has shifted to
densely electrified zones i.e. urban and industrial areas. The programme aims at
strengthening and up-gradation of the Sub-transmission and Distribution system in
the country with the objective of reducing Aggregate Technical and Commercial
(AT&C) losses, improving quality of supply of power, increasing revenue collection
and improving consumer satisfaction. The strategy envisages technical, commercial,
financial and IT intervention, organization and restructuring measures and incentive
mechanism for reducing T&D and cash loss reduction.

3.5.2 The expected benefits from the programme are as follows:

i) Reduction of AT&C losses from the existing around 60% to around 15% in five
years to begin with in the urban areas and high density/ consumption areas.
ii) Significant improvement in revenue realization by reduction of commercial
losses leading to realization of an additional Rs.20, 000 Crore approximately
over a period of 4-5 years.
iii) Reduction of technical losses would result in additional energy equivalent to
nearly 6,000 – 7,000 MW to the system, avoiding the need of 9,000 to 11,000
MW of fresh capacity addition besides avoiding investments to the tune of
Rs.40,000 to Rs.60,000 Crore;
iv) Quality of supply and reliable, interruption- free power will encourage usage of
energy efficient equipments / appliances, which will further lead to improvement
in availability of energy.
v) Reduction in cash losses on a permanent basis to the tune of Rs.15, 000 Crore.
vi) Distribution reform as envisaged above will help States to avoid heavy
subsidies, which are given to SEBs / State Utilities by State Governments.

3.5.3 Financial Progress

The total fund planned under APDRP in the 10th Plan is around Rs. 40,000 crores
with investment component estimated to be around Rs 20,000 Crores and incentive
for cash loss reduction at Rs.20, 000 crores.. Under investment component 583
projects were sanctioned with cost of Rs.19180.46 Crore against this Rs.6131.70
crores were released. The Counter-Part funds tied up were Rs. 7044.34 Crore and
funds drawn were Rs. 4087.04 Crore and Funds utilized were Rs. 9518.13 Crore.
Incentive for reduction of cash loss amounting to Rs.1536.64 Crore has been paid to
Andhra Pradesh, Gujarat, Haryana, Kerala, Maharashtra, Rajasthan, West Bengal
and Punjab for showing cash loss reduction of Rs. 3446.60 crore.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Table 3.2
Allocation of Funds Under APDP

(Rs. in Crore)
Year BE RE Actual Expenditure
2002-03 3500.00 1089.00 Investment – 1755.52
Incentive – 379.28
Total - 2134.80
2003-04 3500.00 3300.00 Investment – 2356.51
Incentive – 503.30
Total – 2859.81
2004-05 3500.00 1700.00 Investment- 1428.73
Incentive – 73.00
Total – 1501.73
2005-06 1172.00 - Investment – 331.56
(Grant only) Incentive – 515.78
Total – 847.34

The details of the cash loss reduction and incentives released to various states under APDP
are given in Table 3.3 (As on 31st March 2006) :

Table 3.3
Cash Loss Reduction & Incentives REleased
(Rs. in Crore)
Sl. State Year Cash loss Incentive
No. reduction released
1 Gujarat 2001-02 472.74 236.37
2002-03 296.16 148.08
2 Maharashtra 2001-02 275.78 137.89

3 Haryana 2001-02 210.98 105.49


4 Rajasthan 2001-02 275.78 137.71

5 Andhra 2002-03 530.22 265.11


Pradesh
6 West 2002-03 146 73
Bengal 2003-04 605.52 302.76
7 Kerala 2002-03 129.88 64.94
8 Punjab 2003-04 503.88 65.28
Total 3446.6 1536.64

3.6 ACHIEVEMENTS UNDER APDRP

3.6.1 Reduction in AT&C losses:

The AT&C losses which were about 36.81% in the year 2001-02 have reduced to
33.82 % in the year 2004-05. Power Utilities in the states of Andhra Pradesh,
Arunachal Pradesh, Delhi, Goa, Haryana, Himachal Pradesh, Karnataka,

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Maharashtra, Mizoram, Nagaland, Orissa, Punjab, Sikkim, Tripura, Uttar Pradesh


and West Bengal have shown reduction in their AT&C loss. 313 towns covered
under APDRP have shown reduction in the AT&C loss. 212 APDRP towns have
brought down AT&C losses below 20 percent. 169 towns have shown loss below
15% and 38 towns have achieved AT&C loss between 15 & 20% (AP-96, TN-36,
Karnataka-31, Punjab-11, Gujarat-11, Chattisgarh-2, HP-6, Maharashtra-8, Kerala-4,
Rajasthan-3, Goa-1, Tripura-1).

The overall commercial loss (without subsidy) of the utilities reduced from Rs. 29,331
Crore during 2001-02 to Rs. 19,722 Crore during 2003-04. However, the same
increased to Rs. 22,126 Crore during 2004-05. Cash loss reduction of Rs.3447
crores was achieved by states of AP, Gujarat, Kerala, Maharashtra, Punjab,
Rajasthan and West Bengal. The states which are still incurring high losses are
Assam, Bihar, Haryana, Jharkhand, J&K, Karnataka, Punjab, Rajasthan, Tamilnadu
and Uttar Pradesh.

3.6.2 Progress of Metering

(a) 11 kV feeders metering:

At national level 96% feeders have been metered as of now, as against 81% metered
during 2001-02. 100% feeder metering has been achieved in 18 states namely in
Assam, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Meghalaya, Punjab, Rajasthan, Sikkim, Tamilnadu, Tripura, Uttar
Pradesh, Uttaranchal & West Bengal. Union Territories of Chandigarh, Daman &
Diu and Pondicherry have also achieved 100% feeder metering.

(b) Distribution Transformer Metering:

The distribution transformer metering is a prerequisite for carrying out energy audits
and identifies the high loss area in the LT system. The overall DT metering in the
country is still low in most of the states. The maximum extent of DTR metering is
around 25% for the states of Karnataka and Maharashtra.

(c) Consumer metering:

During 2001-02 the consumer metering was at 78%. It has now increased to 92%
during 2005-06, 100% consumer metering has been achieved in the states of Delhi,
Himachal Pradesh and Kerala. Union Territories of Chandigarh and Daman & Diu
have also completed 100% consumer metering. Andhra Pradesh, Assam, Goa,
Gujarat, Haryana, Mizoram, Rajasthan, Sikkim, Uttar Pradesh, West Bengal and
Pondicherry have achieved more than 90%. Majority of the un-metered consumers
belong to agriculture and flat rate categories.

3.6.3 Control of theft and pilferage

Anti theft provisions were introduced in Electricity Act 2003. 13 states have set up
special courts and five states have set up special police stations to deal with theft.
AP, Assam, Delhi, Gujarat, HP, Karnataka, MP, Maharashtra, Orissa, Rajasthan, UP,
Utrtaranchal, WB have set up special courts. Gujarat, Karnataka, Orissa, Rajasthan,

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

WB have set up special police stations. Around 12 lakh cases were detected, and in
about 10,000 cases conviction and about Rs.600 crores were realized.

3.6.4 Other initiatives and improvements

• 24 states have constituted Electricity Regulatory Commission and 20 have


also issued tariff order (AP, Assam, Chhattisgarh, Delhi, Gujarat, Haryana,
HP, Jharkhand, Karnataka, Kerala, MP, Maharashtra, Orissa, Punjab,
Rajasthan, TN, Tripura, UP, Uttaranchal, WB).
• 13 states have unbundled, restructured and corporatized SEBs (AP, Assam,
Delhi, Gujarat, Haryana, Karnataka, MP, Maharashtra, Orissa, Rajasthan,
Tripura, UP, Uttaranchal).
• Computerized billing was introduced in most of the states; Spot billing
machines for issuing bill at the time of meter reading were introduced in
several states (AP, Assam, Bihar, Delhi, Goa, Gujarat, Haryana, HP,
Karnataka, Kerala, Maharashtra, Orissa, Punjab, TN, UP, Uttaranchal).
• Customer information about metering billing and collection on websites
introduced in AP, Delhi, Maharashtra, Karnataka, Tamil Nadu.
• Customer care centres opened in several states (AP, Assam, Delhi, Goa,
Gujarat, Haryana, HP, Jharkhand, Karnataka, Kerala, Maharashtra, MP,
Orissa, Punjab, Rajasthan, TN, Tripura, Uttaranchal, UP, WB).
• A number of Distribution utilities mobile repair vans have been launched in AP
and Delhi.
• In number of states headquarters, SCADA has been introduced (Hyderabad in
AP, NDPL in Delhi, Vadodara in Gujarat, BEST & REL in Maharashtra,
Chennai in TN, Jaipur in Rajasthan, Trivandrum in Kerala).
• Introduction of consumer index linking along with geographical information
system has started in some of the states.
• Local communities like self help groups, gram vidyut pratinidhi, franchisees,
and local entrepreneurs are involved in distribution of electricity.

3.6.5 Capacity Building

Capacity building of utilities personnel at all levels has been taken up to train them in
latest technologies and methods of operation and maintenance, project formulation,
project management etc. PMI (NTPC) & NPTI have trained more than 1800
personnel from various utilities. Training of around 25,000 utility personnel has been
taken up under Distribution Reform Up-grade Management (DRUM) in association
with USAID. The training themes include AT&C loss reduction, O&M practices,
demand side management, Safety aspects, performance benchmarking, quality
management, financial management, project development etc. An MBA course for
the distribution managers was introduced under the DRUM training programme at
MDI, Gurgaon.

3.6.6 Addition to sub-transmission and distribution network during 10th Plan

The extent of Sub transmission and Distribution systems at the beginning of 10th plan
on an all India basis was 5769739 km of lines and 176026 MVA of distribution
transformer capacity. This has increased to 6570823 Km of 33 kV, 11 kV and LT
lines and 236070 MVA of Distribution transformation capacity by 31st March 2005.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

This is an increase of 801084 Km of lines and 60044 MVA Distribution transformer


capacities. It will further increase by the end of 10th plan with completion of ongoing
schemes. The addition envisaged by the Working Group on 10th Plan was 828863 km
of 33 KV, 11 kV and LT lines and 65505MVA of Distribution transformer capacity.

3.6.7 Independent evaluation of APDRP Schemes

The Ministry of Power got the evaluation of APDRP carried out through independent
agencies namely TERI (The Energy Resource Institute), SBI Capitals, Tata
Consultancy Services, Indian Institute of Management Ahmedabad (IIMA) and ASCI
(Administrative Staff College of India), Hyderabad to assess the benefits accrued
from APDRP projects vis a vis- expected benefits from the APDRP programme. In
the first phase, evaluation has been carried out for 66 projects, where more than 50%
work has been completed.

The evaluating agencies suggested that information technology should be used


effectively to enhance the benefits, funds should be released directly to the Utility /
SEB concerned, to cut down approval & disbursement time, funding from the Govt.
must be linked to achievement of specific benchmark parameters, rather than based
on the incurred expenditure, project plan with time schedule for different activities
should be pre-defined at DPR stage only, project implementation should be done on
turnkey basis and measures for increasing accountability and measuring
performance should be the main focus areas for attaining commercial turnaround.

In accordance with the above recommendation emphasis is given to GIS based


consumer indexing and distribution transformer based energy auditing for increased
accountability, adoption of information technology for efficiency improvement,
focused monitoring on key performance parameters, to cover all district headquarters
under the programme on priority and establishment of consumer care centers/ Bijlee
Seva Kendras.

3.6.8 Task Force on APDRP

The ministry of power has constituted a Task Force under the Chairmanship of Shri
P. Abraham, Chairman, Maharashtra State Power Generation Co. Ltd comprising of
Members from utilities from different zones and other eminent persons with the
following terms of reference:
i) To assess the current efforts under APDRP;

ii) Analyze the current reforms initiatives that are being pursued by the
states with reference to the objectives of APDRP;

iii) To assess the need for modifications in the light of independent


evaluations and other feed back;

iv) Suggest measures to achieve the objectives of APDRP

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.6.9 The observations of Task Force

The Task Force observed that some of the utilities adopted feeder approach to make
field officers accountable and measuring their performance achieved very good
results in the form of improvement in all the key performance indicators. The
monitoring of achievements has improved expenditure in many utilities. The Task
Force observed that increase in commercial loss of utilities has not only been
arrested but there is downward trend at the national level. Though reduction in AT&C
losses and DT failure rate has been reported in most of the towns where APDRP
work has been considerably completed the significant reduction was only in few
states. In the feeders where augmentation has been done and the energy
accounting has started outages have reduced and significant improvement has been
achieved in respect of AT&C losses and DT failure rate. The Task Force observed
that AT&C losses of 5.06% was reduced at national level during 3 years i.e. 1.68%
reduction per year as against a target of 9% per year and this achievement can not
be considered as small, as actual implementation after the programme started quite
late. The Task Force observed that improvement in billing and collection efficiency
has taken place in most of the utilities. The Task Force felt that APDRP is still at
initial stage and the full benefits of the programme can not be expected at this stage.
The assessment of benefits from the programme should be made after covering all
the district headquarters at least and when sufficient work has been completed.

3.6.10 Summary of Recommendations of the Task Force

The recommendations of the Task Force are:


a. ARPDP to be continued in XI th plan with focus on auditing and accounting
and reducing AT&C losses in major town and cities It interventions,
technological up gradation, control of theft and pilferage, GIS and consumer
indexing and establishment of Bijlee Sewa Kendra.
b. The conditions for availing assistance under the programme may be made
more stringent with an objective to make States/Utilities to adopt reforms. The
primary conditions as mentioned in the report will have to be fulfilled by the
states for becoming eligible for the APDRP. The states will also have to
commit achievement targets for secondary conditions as approved by the
Ministry, which will be based on the present performance level of the Utilities.
c. The APDRP assistance, both investment and incentive component, may be
extended to the Private Distribution Utilities also. The incentive for loss
reduction by the private utilities may be given to the State instead of the utility.
d. The Task Force recommends following targets for reduction in AT&C losses
by the Utilities:
i) Utilities having AT&C losses above 40%: Reduction by 4% per year;
ii) Utilities having AT&C losses between 30 & 40%: Reduction by 3% per
year;
iii) Utilities having AT&C losses between 20 & 30%: Reduction by 2% per
year;
iv) Utilities having AT&C losses below 20%: Reduction by 1% per year.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

e. The projects taken up under the programme should be aimed at reducing


AT&C losses, improvement in quality and reliability of power and improvement
in consumer services.
f. Utilities should prepare a roadmap with priorities for works to be taken up
under the investment component and execute the work by adopting best
practices.
g. Each Distribution Company may be considered for calculation of incentive
against cash loss reduction. Ministry may devise additional methods also for
incentivizing Utility and Utility employees for improvement in performance.
h. Under the investment component of the programme, the grant may be
increased to 50% of the project cost for the general category states.
i. In order to keep the focus of the states and Utilities towards reforms and the
improvement in the sector, Government should commit sufficient non-lapsable
fund for the programme.
j. The programme may be converted into a Central scheme for speedy
implementation.
k. The assistance under the programme should focus mainly on such activities,
which will help in quick reduction of AT&C loss and improvement in customer
services,
l. The programme should have a provision of 5% for training the Utility
personnel, hiring consultants, undertaking studies, project evaluation etc.
m. The DPRs for the new projects should be made more realistic. The tender
documents and specifications should be standardized by the AcCs in
consultation with the Utilities. It should contain a quality plan and also
provisions for price variations during execution. A variation of plus or minus
10% to 15% may be allowed in quantity or value of items within overall
sanctioned cost of the scheme.
n. Execution of all the schemes should be on turnkey system only by adopting
standard specifications, except in cases where approval of the Ministry is
taken in advance.
o. Utilities, AcCs and Ministry of Power should closely monitor the
implementation of APDRP projects and progress of the Utilities towards
achievement of the set targets.

3.7 DISTRIBUTION OF POWER IN RURAL AREAS - INITIATIVES IN 10th PLAN

During the first four years of the 10th Plan, the PFC has sanctioned financial
assistance of Rs. 8383.83 crore to various States under various schemes for rural
electrification.

A number of initiatives were taken during the X plan period, successively for
household and village electrification viz

(i) Kutir Jyoti Yojana, 2002-04,


(ii) Pradhan Mantri Gramin Yojana 2002-05,
(iii) Minimum Needs Programme 2002-04,
(iv) Accelerated Rural Electrification Programme 2003-04,

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

(v) Accelerated Electrification of One Lakh Village and One Crore Households
2004-2005.
(vi) Rajiv Gandhi Grameen Vidyutikaran Yojna was launched from April 2005 and
all the above mentioned schemes were merged in it.

Definition of Village Electrification

At the advent of this scheme, the definition of village electrification was changed.

A brief history of these definitions of village electrification is as follows:

Prior to October 1997

A village should be classified as electrified if electricity is being used within its


revenue area for any purpose whatsoever.

In 1997, the definition of village electrification was modified to provide for the use of
electricity to village habitations. Accordingly, the new definition said:

After October 1997

A village will be deemed to be electrified if the electricity is used in the


inhabited locality, within the revenue boundary of the village, for any purpose
whatsoever.

In Feb. 2004, the definition was made even more encompassing as also target
specific.

New Definition (2004-05)

A village would be declared as electrified if:

(i) Basic infrastructure such as distribution transformer and distribution lines are
provided in the inhabited locality as well as the dalit basti/hamlet where it
exists. (For electrification through Non-Conventional Energy Sources a
distribution transformer may not be necessary)
(ii) Electricity is provided to public places like schools, panchayat offices, health
centres, dispensaries, community centres etc. and
(iii) The number of households electrified should be at least 10% of the total
number of households in the village.

With each change of definition, the number of electrified and unelectrified villages
was set to change.

3.7.1 Progress of rural electrification during X Plan

Out of a total of 593732 inhabited villages as per 2001 Census in the country,
439165 villages have been electrified by February 2006. Similarly, against the
potential of 196 Lakhs irrigation electric pumpsets, 148 lakhs pumpsets have been
electrified as on 31.03.2006.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

In the X Plan document it was proposed to electrify all the balance unelectrified
villages i.e. 97,559 during the Plan. However, in the first four years of the Plan only
19,460 villages have been electrified. Year wise achievement of villages electrified
and pumps sets energized during first four year of X Plan are given in Table 3.4:

Table 3.4
Village Electrified & Pump sets Energised

Years Villages electrified Pump sets energized


2002-03 2626 651095
2003-04 2781 322968
2004-05 3884 329573
2005-06 10169 357995
Total 19460 1661631

3.7.2 Implementation of RGGVY :

RGGVY had originally envisaged electrification of 125000 (based on 1991


consensus) unelectrified villages 7.8 crore in unelectrified households (including 2.34
crore BPL households) in the country. The estimated cost of RGGVY was to be Rs.
16,000 crore, of which Rs. 14750 crore (90%) was expected to be subsidy
component. Out of the total of 29 States in the country, 27 States agreed to
participate in RGGVY (except State of Goa and Delhi). The participating States have
concluded the necessary arrangements amongst REC, State Governments, State
Power Utilities and CPSUs.

3.7.3 Achievements

Under the scheme, works for the electrification of 9819 unelectrified villages in the
States of Bihar, UP, West Bengal, Rajasthan, Uttranchal and Karnataka and 350
electrified villages (intensive electrification) in the States of Karnataka have been
completed during 2005-06 and 9151 unelectrified villages have been electrified
during 2006-07 as on September 30, 2006.

Table 3.5
Achievements under RGGVY

(As on 16.10.2006)
DPRs Sanctioned for 218 districts in 24 States covering 219 Projects
• Un-electrified villages 59441
• Electrified villages 97391
• Households 9910686
• BPL Households 6407226
• Total Project Cost Rs. 8383.83 cr.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

Quantum of major works covered under sanctioned projects


• New 33/11 kV Sub-stations 352
• Aug. of existing 33/11 kV S/Stns. 527
• New 33 kV Lines (km) 6171
• New 11 kV Lines (km) 209735
• New Distribution Transformers 243896
• New LT Lines 87725.13
• Metered Connections (BPL HH) 6407235

Turnkey contracts awarded


• Un-electrified Villages 50706
• Electrified villages 47279
• Households 4978683
• Total Project Cost Rs. 5248.13 cr.
• Total Awarded Cost Rs. 7283.80 cr.

3.7.4 Need for continuation of RGGVY

RGGVY has truly become the engine of rural electrification programme in all States
of India., DPRs from all States are going to be available by 2007. Works have been
started in 153 districts. RGGVY should be continued in the XI plan to achieve the
objective of ‘Power to all by 2012

3.8 DEVELOPMENT OF REVENUE SUSTAINABILITY - FRANCHISEES

RGGVY scheme envisages management of rural distribution through franchisees


who could be NGOs, User Associations, and individual entrepreneurs, cooperatives
or Panchayats. As per the Electricity Act, a Franchisee means a person authorized
by a distribution licensee to distribute electricity on its behalf in a particular area
within its area of supply. Deployment of input based Franchisees is a requirement
under RGGVY scheme to receive funds under the scheme.

Fifteen State Governments have taken action for deployment of franchisees. About
thirty eight thousand villages are covered under franchisee arrangement till October
2006. The majority of these franchisees are in Karnataka, West Bengal, Assam,
Uttaranchal, Uttar Pradesh, and Nagaland. Other states including Bihar, Rajasthan,
Chhattisgarh, Haryana etc. are at various stages of deployment of Franchisees.
Uttar Pradesh has engaged consultants for 6 pilot projects and 15 transaction
projects to develop Input Based Franchisees. These franchisees are mostly revenue
based where the activities are limited to meter reading, billing, bill distribution,
revenue collection, attending to complaints, maintenance of records, minor repairs
etc. The states have committed to convert revenue based franchisees to input based
franchisee.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.8.1 Franchisee Experience in the states

¾ The institutional design and structure of Franchisee models vary from state to
state. In Nagaland, the traditional structure of Village Council has been used to
form a sub-committee called Village Electricity Management Board (VEMB) to
function as a Franchisee. Electricity is billed to VEMB on Single Point Metering
(SPM) basis. The objective of SPM is to reduce Technical and Commercial
losses and to involve village community to work as business partner with Power
Department. The VEMB gets 20% financial benefit on the every unit of energy
they sold. The tariff fixed by Govt. for VEMB is Rs. 1.60 per unit and VEMB in
turn sell @ Rs. 2.00 per unit to village consumers. To get full financial benefit
VEMB has to ensure that whatever is the energy supplied through SPM is billed
from consumers in the village, this has resulted in reduction of theft and other
commercial losses in the supply area of VEMB. At present VEMBs are in place
in 452 villages.

¾ In Karnataka, Gram Panchayats have been involved to identify Grameen Vidyut


Pratinidhi (GVP) to function as Franchisee. The GVP is a local unemployed
youth from the same Panchayat. They are working as revenue franchisee and
there is a provision of commission on amount realized above baseline targets
apart from retainer ship fee for achieving the baseline targets. At present 3425
GVPs are already working in 5605 Panchayats falling under all the five
ESCOMs covering 17125 villages.

¾ In Assam, the utility initiated the Single Point Supply Scheme (SPSS) and
appointed input based franchisees and collection franchisees at distribution
transformers. The Single Point Power Supply (SPPS) through franchisee was
first introduced in Digboi division in upper Assam and looking to the success of
the programme it was extended in the entire State. Initially 22 villages with
distribution transformers ranging from 16 KVA to 100 KVA were taken-up for the
programme where 80% of the connected load is in domestic category, now the
programme is in place for 816 villages and efforts are being made to engage
franchisees for another 816 villages. The franchisee can be NGO, user’s
association, a village body or an individual. The mechanism of payment to
franchisee is very simple 10% distribution losses and 15% commission is
allowed.

¾ In West Bengal and Uttaranchal, women Self-Help Groups (SHGs) have been
engaged to function as Franchisee. These are at present revenue franchisees.
The franchisee and people working with franchisee are mostly resident of the
same locality. In Uttaranchal 5321 villages are under franchisee arrangement
and in West Bengal this number has reached to 1169 villages.

¾ Deployment of franchisee is in progress in other states like Uttar Pradesh, Bihar,


Haryana, Rajasthan, Madhya Pradesh etc.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.8.2 Impact of Franchisees

While there is a variation in the institutional design of Franchisees across the states,
most of the operational Franchisees at present are either Collection Franchisee or
Input Based Franchisees. Since the formation of the Franchisees in the states, no
systematic evaluation has been undertaken to assess the impact of these on
improvement in management of rural electrification. It is therefore critical to undertake
an Independent Verification and Evaluation study. However, there has been to some
extent documentation of the experiences and internal review of the Franchisee
experience in the state these are summarized below:

(i) Improvement in Collection Efficiency – Experience from all the states shows
that the collection efficiency in these states where Franchisee either as Collection or
as IBF has been implemented has improved.

(ii) Improvement in customer services – Customer services in the rural areas have
improved since the formation of Franchisees. The improvements pertain to billing and
collection and services of minor repair and maintenance. Since the franchisee and
the people working with the Franchisee are mostly residents of the same locality,
there is saving in time and money for the customer.

(iii) Employment Generation – Deployment of Franchisees has also resulted in


employment generation in the local areas.

The key lessons identified from Franchisee experience which are important for
developing future course of replication and up-scaling Franchisee implementation in
the states are:

(i) Simple Arrangement Works - One of the key reason for rapid expansion in
implementation of SPSS scheme in Assam was ease of implementation
arrangement, it was easy to understand (the calculation of commission, standardized
loss levels) and standardized across franchisees. The simplicity of the arrangement
made it easier for the Franchisees to comprehend that irrespective of the distribution
transformer they adopt, the allowed loss would be 10% and the commission would be
15%. This helped in quick implementation.

(ii) Pre-implementation Financial viability of Franchisee Essential - There is a


need for pre-project studies to evaluate the financial viability of the franchisee.
Review of the Franchisees in Assam shows that there are disputes on "Permissible
Loss Levels" and some of the franchisees have started surrendering their areas. The
key reason for the dispute in loss levels is that, initially when they signed the
agreement, only a few were involved in any kind of activity related to the electricity
business. It is only after taking over of the transformers that the Franchisees realized
the actual condition of the distribution system. Also some of the franchisees have
reportedly suffered losses due to following reasons:

ƒ The franchisees that are not technically sound, find it difficult to identify issues
such as meter bypass and unauthorized hooking.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

ƒ In few Franchisee areas, Franchisees are not powerful enough to take action
against those whom they know are getting unauthorized power. Similar
lessons have also been drawn from review of GVPs in Karnataka.

(iii) Franchisee Management Information System (FMIS) is required -


Development of a FMIS to track franchisee performance, learn from experience, their
adherence to contractual requirements and to take early corrective actions is
required. None of the states which have set-up Franchisees have such MIS system.
A similar FMIS is also required to be developed for REC to monitor the performance
of Franchisees across the country.

(iv) Up scaling from Collection Franchisee to Input Based Franchisee (IBF)


necessary – Review of Franchisee implementation by most of the states show that
they have opted for Collection Franchisee. While the choice of Franchisee model is
left open, it has been emphasized that eventually the most effective model would be
an IBF model.

3.8.3 Capacity Building of franchisee

REC has circulated guidelines for formulating the franchisee system and has
prepared a comprehensive document on the possible franchisee models, field
experience shows that in the absence of any formal training, existing franchisees are
facing technical and managerial problems during actual operation. Apart from the
technical aspects of electricity distribution, it is imperative for prospective franchisees
to understand the business opportunities in the system, its management and keep it
profitable. In order to ensure that the franchisee model is sustainable in the long run,
it becomes critical to build capacities of these franchisees. A national programme for
training and capacity building targeted at enhancing the skill set of existing and
potential franchisees and trainers to enable them to play a proactive role in improving
rural electricity access in the country may, therefore, be launched during XI plan
period. Capacity building should go in tandem with electrification of villages so that
adequate numbers of trained people are available to take up franchisees in the newly
electrified and other electrified villages. Capacity building should precede awareness
campaign to educate people about franchisee system for management of rural
distribution and its potential.

3.9 ROLE OF PANCHAYATI RAJ IN FRANCHISEE DEVELOPMENT

The Franchisee Guidelines issued by REC envisage that the Panchayati Raj
Institutions (PRIs) would have a supervisory / advisory role in management of rural
distribution through franchisees. The state Government could also encourage the
Panchayati Raj Institutions to take on responsibility of franchisee as and when such
institutions have developed to the extent that they can undertake contractual
obligations, raise resources from market and can discharge associated legal
responsibilities. PRIs may also be closely associated with the franchisee
arrangement as link between the franchisee and the villagers / consumers as well as
concerned state authorities.

As the PRIs are going to play the key role in development of franchisees for
management of rural distribution, participation of Ministry of Panchayati Raj in

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

capacity building at all levels is imperative. Keeping this in view, the committee
recommends that:

¾ The Ministry of Power in collaboration with Ministry of Panchayati Raj may


formulate an integrated capacity building plan including franchisee
development with the scope of wide application across the country to meet the
national goal consistent with the RGGVY scheme.

¾ The capacity building plan may include all aspects of energy/power sector
covering primary education on electricity / energy, energy efficiency, repair
and maintenance of rural electricity infrastructure, metering arrangement,
social engineering, legal and regulatory aspects, MIS for effective monitoring &
control, commercial operations of utility viz. meter reading, billing, revenue
collection, book keeping, disconnections, theft control etc.

¾ For taking up the programme at the country level, establishment of institutions


in each state with regional headquarters and branches at district level may be
considered. For 11th Plan, target should for creation of such institutions in at
least 20 states in different regions and 115 district centers in collaboration with
Ministry of Panchayati Raj and Ministry of Rural Development.

¾ For kick start, established institutions in the area of providing technical


education like ITI, Polytechnic etc. at regional level may also be involved. In
association with established institutions, Certificate courses on such subjects
may also be formulated so as to provide this education on continual basis.

¾ Appointment of a specialized agency / consultant like TERI, Productivity


Council, CBIP, PWC, E & Y, etc. for preparation of course modules / training
capsules on above mentioned aspects with proper documentation of course
material may also be considered. Special attention may be paid to the desired
operational skills for franchisee. The course material should be more
illustrative, inter-active and computer friendly. These materials should be
available for use in any part of the country. A comparative analysis of the
various franchisees in different states be included in the course module.

¾ Initially, the core groups at state level may be trained as ‘trainers’ through a
specialized agency / consultant which in turn may provide training to trainees
in identified institutes in various states / districts.

¾ Association of power utilities should also be encouraged to make this


programme a success and necessary training should also be provided to the
field officers/staff of utilities associated with franchisee management for
effective implementation of franchisee system.

¾ Once the franchisee is appointed, they may be provided on the job operational
training by the field officers of the utilities

Page 24 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.10 POWER DISTRIBUTION IN RURAL AREAS THROUGH DDG

3.10.1 Definition of DDG

Decentralized Distributed Generation (DDG) is defined as installation and operation


of small modular power generating technologies that can be combined with energy
management and storage systems, and used to improve the operations of the
electricity delivery systems at or near the end user. These technologies can be
utilized for off-grid as well as grid based.

DDG programme is relevant for India to cover cent percent village and household
electrification in order to meet peak load shortages and to supply quality power at
more economical rate on cost to serve basis. For meeting the rural developmental
needs various types of DDG schemes are required. Each type of DDG caters to a
specific need of an area for which technological solutions may be different and they
call for different institutional arrangements and financing policies.

3.10.2 Potential for DDG

There is a potential to add 10,000 to 15,000 MW capacity through decentralized


distributed generation in 11th and 12th plan. The DDG projects would help both in
electrifying the villages and households and also in generating local employment.
Approximately 2000 substations can be linked with 2 -5 MW DDG projects, adding a
capacity of 4000- 5000 MW during 11th plan. The total cost involved will be Rs. 25000
crore approximately.

3.10.3 Challenges for DDG Projects

DDG is yet to be tried on a large scale in rural electrification projects. There are still
many barriers—technical, financial, regulatory, and institutional—that need to be
addressed adequately. In other words, a clear and well-established framework is
required to design, implement, and encourage DDGs as these are expected to be
aligned to the following policy/programme guidelines:

- Universal access to electricity in India.


- All BPL families to be provided single point free connection.
- Revenue sustainability through SEBs /franchisees.
- Affordable power to remote areas through cost effective DG projects.
- Utilization of locally available, environmentally benign renewable energy
- Sources for providing power either to the grid nearer the load or on stand-
alone basis.
- Gainful utilization of the infrastructure created under RGGVY.
- 24 Hour power supply through reliable quality power.
- Facilitate development of rural load at an accelerated pace.
- Creation of viable and sustainable franchisee development.
- Availability of low cost funds and International acceptance of REC
standards.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.11 SHORT TERM STRATEGIES FOR DDG SCHEMES

a. Stand Alone

i) These projects to be implemented by MNER/REC through NTPC, IREDA or


other agencies by setting up Joint Ventures or by any other agency
independently or any other acceptable mode.
ii) The funds available under RGGVY be utilized for the same for village
electrification and / or household electrification etc.
iii) All available technologies of bio diesel/ SPV/ biomass/ mini-micro hydel/ micro
turbines etc. could be considered to provide affordable power to rural areas.
iv) Involvement of local bodies like panchayat, NGOs, SHG or VECs etc in
managing the DDG projects in rural areas.
v) Selection of Rural Electricity Supply providers/ franchisees.
vi) Cost of electricity to be based on cost to serve or avoided cost basis and
affordability.
vii) Capital Subsidy for DDG projects.
viii) Manufacturers of equipment may install and operate the plants for a fixed
duration.

b. Grid Interconnected

Central and State level Government Agencies may participate in the equity of the
grid-connected projects, along with established Private Agencies to form a Public
Private Partnership in setting up various projects in the country. Independent power
producers may also set up such projects. The ownership of the DDG Projects will rest
with the project promoters/ equity holders. The following method may be adopted for
construction:
1. BOT
2. BOOT
3. BOLT

At least 100 “Pilot Projects“ in various states of the country should be commissioned
during the first 2 years of the 11th plan to give large scale impetus to DDG
programme. These “Pilot Projects” should be driven by “Public Private Partnership”
programme.

DDG project owners should be offered the distribution activity in the vicinity by the
leasing of the distribution network to achieve efficiency, cutting losses and adding to
project viability

All projects be selected from the predetermined areas and offer for PPP on
competitive, transparent basis with any or all of attributes:

1. These schemes may range up to 5 MW in order to meet the supplementary


power demand in rural and semi- urban areas.
2. Corporate agencies be encouraged to undertake such projects
3. Suitable standardized size packs may be used in order to reduce production
costs.

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

4. All available commercialized technologies whether conventional or non-


conventional may be utilized.
5. Cost of electricity to be on Cost to Serve/ Delivered Cost or Avoided cost basis
for working out viability. Life Cycle Costs Approach can also be considered.
6. Multifuel technologies may be adopted for sustainability.
7. Exemption to be given for income tax, customs and excise duties etc.
8. All concessions extended by states for industrial development also to be
extended for DDG projects.
9. Viability gap funding may be appropriate methodology.
10. Financial Institutions support for energy plantations. Which would meet the
feedstock needs of biomass power/ bio fuels/ bio- diesel plants. For the pilot
projects, support also needs to be extended for R&D efforts and preparation of
DPRs

3.12 MEDIUM TERM AND LONG TERM STRATEGIES

1. R&D on fuel Cell technology to considerably bring down the costs.


2. R&D on all existing technologies to improve the product quality as well as
efficiency levels of the systems to make them more durable and affordable
cost of power.
3. Training of local youth in maintenance of the DDG equipment locally.
4. Improvement in the quality and life of batteries.
5. Biomass cultivation and development of short duration (cycle) high yield
varieties of biomass suitable for bio- methanation / gasification / direct
combustion/ bio-fuels production”

3.13 COST TO SERVE/ DELIVERED COST

The shortage of electricity leads to larger power cuts in rural areas due to more than
double the quantity required to be fed in the grid for a particular delivered quantity
and quality of Power in far off rural areas due to heavy transmission, distribution and
collection losses. In order to bridge the gap between rural and urban areas,
extension of grid through RGGVY is under implementation which only takes care of
the infrastructure issues but does not address the issue of quality and quantity of
power supply. One of the options in this regard is the supply of electricity through
Decentralized Distributed generation method whether off grid or through the grid
nearer the load centres.

3.14 ROLE OF STAKEHOLDERS

i. State Government

• Provide an enabling framework for streamlined implementation and operation of


the DDG scheme.
• Publicize and make aware the stakeholders about potential sites/ locations for
implementing the DDG schemes.
• Target for and incentivise for taking up the DDG schemes in potential areas
including development of supply providers. Make necessary provisions in the
State Budget suitably.
• To provide land on nominal lease.

Page 27 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

• Maintain system of constant checks and controls through local administration


with involvement of the beneficiaries for more participative interaction.

ii. State Utility/Discom

• Assist the Supply provider during identification and execution of the scheme.
• Support the supply provider during the initial operations and ‘stabilization’
period.
• Lease/sell the substation infrastructure to DDG operators

iii. Local Administration

• Act as trustee of beneficiaries interest w.r.t the investments made, security of


assets, continuity of the system and stakeholders.
• Provide for quality of service measures and controls ensuring streamlined
operation of the system without any undue interference.

iv. Supply Provider

a) Technical

• Operation and Maintenance of the main plant and equipment.


• Breakdown maintenance and repairs of HT & LT lines.
• Maintenance of Transformers and other equipments.
• Maintaining the reasonable stock of line and sub-station materials required for
repairs.
• Replacement of failed transformers and equipments.
• Install meters to all unmetered installations.
• Attend to consumer’s complaints and grievances.
• Prevent pilferage and thefts of energy
• Receive application for new connect ions.
• Prepare feasibility report and estimate for new connections.
• Sanction estimates for new connections as per norms and approved
policies/procedures.
• Prepare estimates and drawings for extension and improvement works to bring
down energy losses to acceptable levels, check theft and energy accounting.
• Servicing of new installation with meters.
• Execution of improvement works.
• Identify inefficient pumpsets and arrange for replacement with efficient
pumpsets by bringing in necessary investments.
• Submission of prescribed reports to the Distcom/Government.
• Identifying unauthorized installations and take suitable action.
• To follow the provisions relating to safety and electricity supply.

b) Revenue

• Meter Reading
• Billing
• Collection

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

• Maintenance of records
• Submission of monthly accounts and statistics to respective Discom/
Government.
• Reply to audit queries.
• Use necessary hardware/software for issuing computerized billing and
generating reports.
• Collecting government charges/ levies and paying the same to the Government.

c) General

• To educate consumers in its jurisdiction on the efficient use of equipments such


as lighting, pump sets etc. for conserving energy.

EDUCATE COMMUNITY ON SAFE USE OF ENERGY

3.15 ROLE OF REC

REC may be declared the nodal agency for DDG schemes to provide single window
support during project formulation, seeking clearances, appraisal, approval and even
ensuring financial closure. It will assist in selection of rural electricity supply provider,
training of village youth and vendor development for providing reliable services.

Commercially viable projects in DDG sector will be either directly financed by REC or
through the route of refinance facility to banks, state Corporations, RRBs, State
Cooperative Banks, SIDBI etc

REC may also take up nation wide survey of various sources of energy available in
the villages & towns in a time bound manner by engaging State/ private agencies in
different zones. REC may accordingly select suitable sites, setup pilot projects at its
own cost and subsequently transfer them on BOT, BOOT or BOLT basis. REC may
also engage itself in Public Private Partnership to setup such projects. REC may
suitably engage various consultants and construction agencies

3.16 INSTITUTIONAL AND FINANCIAL MODELS

The programme should provide medium and long-term financing to private project
developers, non-governmental organizations (NGOs), micro financing institutions
(MFIs) and community cooperatives etc. for decentralized distributed electrification
schemes. The funds are to be made available to private enterprises, NGOs, MFIs
and community cooperatives for projects up to about 5 MW. The different financial
models may be based on:

• Capital subsidy/ Viability Gap funding


• Revenue subsidy
• Bundling of services
• Linkages with existing programme

Page 29 of Chapter 3
Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

3.17 SPECIAL FOCUS AREAS FOR 11TH PLAN

3.17.1 Separation of Agriculture Feeders

It involves installing a separate feeder to supply to the agricultural load as distinct


from the feeder supplying the non-agricultural loads in rural areas. This facilitates
proper accounting and removes distortions in loss measurement due to un-metered
agricultural loads and load management during peak hours. Andhra Pradesh,
Gujarat and Punjab have initiated steps to separate agriculture feeders.
The working group recommends that a programme should be launched for
separation of feeders in those states where the percentage of agriculture
consumption is more than 20% of power. In other states single phasing of rural
mixed load feeders may be taken up which involves use of change-over switches at
sub-stations. The approach envisages supplying single phase rural lighting load
through three nos. of single phase transformers. During the normal operation, the
agricultural load continues to be supplied from the three phase transformers. On
operation of the changeover switch, there will be no supply to the 3-phase load on
the 11 KV distribution network whereas single phase supply is available to the
lighting and fan load. On revising changeover switch, normal 3-phase supply shall be
restored. Cost and time go in favor of this approach. Integrated energy Policy also
recommends bifurcation of agriculture pumping load from the non-pumping load in all
rural feeders. It further recommends using of available technological options to limit
and measure the amount of agriculture pumping energy provided.

There is also an urgent need to improve the efficiency of the pumpsets by way of
changing over to high quality BIS certified pumpsets. Farmers have to be educated
on the benefits of efficient pumps. They should be provided necessary finance for
replacement of pumpsets.

3.17.2 Metering of Agricultural Consumers

The system of un-metered supply at flat rates for agricultural consumers is a major
stumbling block in the way of accountability and improvement in efficiency of
distribution system. This system makes it difficult to have estimates and actual
consumption and precise estimate of losses. This effects two sectors, power and
water resources. Un-metered supply leads to unrestricted exploitation of the ground
water and rapid depletion of the water table.

In most of the states it is difficult to segregate rural electricity consumption on the


basis of its use in agricultural, commercial, domestic and industrial segment in the
absence of appropriate metering system. Although agricultural consumption is the
most significant one, reliable data on agricultural consumption is not available.
There are 1,44,45,014 pumpsets/tubewells in the country as on 31st March 2005.
The average capacity and electricity consumption per pump set was 3.91 KW and
6131 KWh per annum respectively. The electricity consumption during 2004-05 in
agriculture sector is third highest being 22.93% of total consumption of electricity in
the country. Whatever is not billed in domestic, commercial and industrial categories
is often treated as consumption under agriculture. Power theft is hidden under
agricultural consumption. Utilities may also deliberately overestimate the un-metered

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

agricultural consumption to get higher subsidy from the State Govt. and also project
reduction in losses.

One study has found that owners of electric tube-wells paying flat rate tariff operated
their pumps for 40% – 250% greater hours per year as compared to diesel tube-well
owners which proves the fact that flat rate leads to wastage of electricity with adverse
impact on the water table. Metering of agricultural consumption allows quantifiable
supply to agriculture which is a necessary condition for transparent subsidy
mechanism.

Though new legal framework provides for compulsory metering of electricity supply,
most of the agricultural consumers are supplied un-metered power on flat rate basis
(Rupees/HP/Month). Unmetered supply on flat rate basis has adverse implications
for accounting and auditing of energy besides inefficient use of power and over
exploitation of ground water resources. Section 55 of the Electricity Act provide that

“No licensee shall supply electricity, after the expiry of two years from the appointed
date, except through installation of a correct meter in accordance with regulations to
be made in this behalf by the Authority:
Provided further that the State Commission may, by notification extend the said
period of two years for a class or classes of persons or for such area as may be
specified in that notification.”

Despite all these provisions, power supply to agriculture continues to be un-metered


on flat rate basis in most of the states. Besides, resistance for installation of meters,
the cost and practical difficulties in regular billing and collection are the stated
reasons for not providing meters for agricultural consumers. In this context there is a
need for alternative approaches for metering agricultural consumers. It also requires
full support from the Government/ Political establishments.

The working group recommends that power supply for agricultural purposes should
be hundred percent metered in phased manner to remove distortion in the data
regarding consumption, losses, and subsidies.

3.17.3 Conversion to HVDS System

Over the years, large scale expansion of urban system and rural electrification
program in the country, has resulted in considerable expansion of Low Tension
distribution network. To meet the increasing demand due to load growth, size of the
DTR’s has been constantly increasing. As a result the lengthy of LT lines/circuits is
also increasing resulting in high load losses in LT lines, excessive voltage drops and
frequent faults on LT network and higher rate of failure of distribution transformers. It
is estimated that for the same power demand or load , the current in LT system is 28
times in the 11 KV system. Thus, with switchover to 11 KV systems, load losses are
scaled down 800 times and voltage drops are reduced to a negligible level. High
Voltage Distribution System (HVDS) envisages running 11 KV lines right up to the
loads and setting up small sized distribution transformers and extend supply with
least LT lines. Many states are introducing HVDS system. The benefits of HVDS
system are, theft control, sharp reduction in system losses, effective utilization of
transformer capacity as it would free the transformation capacity from feeding the

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

power losses in the downstream LT lines, reduction in voltage drops, reduction in


failure rate of DTR due to large transformers, long lines and weak load monitoring.
Reduction in DTR failure rate results in enormous savings in cost and time for
repairs, replacement and outages. Since HVDS caters to 5-6 consumers it gives a
sense of ownership to the consumers and the system is well secured. Several
studies revealed that distribution losses can be brought down considerably by this
system.

Though, large scale implementation of HVDS would entail huge investment, the
benefits from it are huge, immediate and sustainable and they offset the investment
burden given the high level of losses and the potential of HVDS to reduce losses.
This system is best suited to meet the problems associated with scattered loads and
to effectively deal with theft of energy by hooking directly from LT lines which is very
common in rural and urban areas. Already states of AP, Delhi, Gujarat, Maharashtra,
UP, WB and Karnataka are implementing HVDS. The 11th plan should focus on
switching over to HVDS system through a suitable investment strategy in a phased
manner in order to bring down the HT: LT ratio to 1: 1 from the present estimate level
of 1:2.5. Attempts should be made to avail CDM benefits from the scheme.

3.17.4 Priority to IT Applications

There is a need for widespread application of IT in the power sector with a focus on
distribution. Ministry of Power has set up IT Task Force with a view to use IT as a
strategy to improve commercial and operational performance of distribution and for
its effective implementation. Today, a number of utilities are using IT applications to
improve their commercial and operational performance. However, adoption of IT as
a tool for automation and efficiency improvement is sporadic and lacks focus. There
is a wide variation in the states in application of IT tools.
The Task Force recommended creation of comprehensive IT blue print for the Indian
power sector that incorporate the global best practices. The task force suggested a
3-5 years IT implementation road map with both short term and long term IT
initiatives. In short term, priority should be use of IT in commercial process and in
improving the quality of supply in selected areas. The long term area should cover
the business process. Asset and work management, outage management and
distribution automotive should be implemented in parallel. Material management and
support process such as human resource, finance, accounts, should be IT enabled in
the phase. The task force also felt that SEBs should also have an effective
management information system for decision, support, improved decision making.
The committee suggested that implementation should be done by accredited
agencies. No concerted effort has been made to implement the recommendations of
the Task Force. The Task Force recommendation should be implemented in the 11th
Plan.

The electricity Act, 2003 ,National Electricity Policy and Tariff policy envisage
development of Open Access, ABT and Energy Accounting at the state level. These
involve emergence of new market mechanisms having complex commercial
arrangements. IT application will facilitate implementation of such complex
commercial arrangements. Therefore priority should be given to set up IT
infrastructure at various levels in the distribution business in the 11th Plan. The blue
print for IT of the utilities should take into account the future market structure, the

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Distribution Including Village & Household Electrification Working Group on Power for 11th Plan

operational requirement and have IT as a key component of business strategies in


the long term business plans. There is need for complete mapping of IT usage in the
Distribution Segment of the country. The working group recommends that a
comprehensive IT blue print should be prepared and the focus should be on
integrated approach to get the best results from the IT applications.

Under APDRP, utilities should spend the incentive grant on cost effective IT related
solutions in the distribution sector. The states/ utilities that have made significant
advance in IT applications should move towards complete integration of various sub-
systems and for adopting the best international practices.
Implementation of IT based billing and collection systems should be introduced to
obtain immediate results in commercial loss reduction. A comprehensive Business
Process Re-engineering (BPR) of all commercial processes needs to be done to
ensure tapping of all revenue leakages and systematic implementation of IT based
tools. Many states have employed these tools and gained significant improvements.

From customer point of view, customer information is very important which usually
includes billing and accounting functions. Priority should be given to improve
customer care through IT solutions. Andhra Pradesh has set up 336 customer
service centres which handle services such as new service connection, additional
loads, name change, category change, line shift, DTR shift, billing complaints, meter
problems, broken poles etc. The cost of one CSC to serve 2 lakh customers is 15
lakh one time and Rs.84,000 recurring cost per month. The working group
recommends all utilities should set up customer service centres in all the towns on
priority. The total urban population of the country as per 2001 census is 28.37
crores. If we assume that household has five persons, there are 5.67 crore urban
households. To cover entire urban population with customer service centres on the
lines of Andhra Pradesh, the cost would be around Rs. 42 crores.

3.17.5 Consumer Indexing and GIS Based Database

Geospatial database developed through GIS based Consumer Indexing and asset
codification integrated with business processes of utility provides the utility a
wherewithal to reengineer business process for transparent and quick decision
making process. It helps in addressing metering and billing issues, new connection
release, fuse off call etc. under the aegis of customer care centre. Surveyed and
validated Feeder overlaid on satellite imagery with landmarks would enable
preparation of correct estimated works and consequently faster implementation
without contractual litigations.

Many utilities have used GIS for improvement in performance. What is required is
integrated solutions. In the 11th Plan integrated GIS mapping and Consumer
Indexing should be given priority in all the towns.

3.17.6 Reliability Monitoring of P