Power Sector � The Way Forward by FFB6Vf

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									               INDIA


Power Development Strategy
   Presentation in World Bank, Washington DC


                 R.V. SHAHI
                 SECRETARY
             MINISTRY OF POWER
            GOVERNMENT OF INDIA                June 23, 2003 1
           Indian Power Sector
   Power in Concurrent list :

    • Both Central and State Governments have jurisdiction

   Power Sector in States

    • Vertically integrated State Electricity Boards

                                 (being restructured)

   Central Public Sector Undertakings

    • Own 30% of the capacity


                                                             2
    Growth of the Indian Power Sector

 Generating capacity has grown manifold from 1712 MW in
  1950 to more than 108,000 MW today.

 The growth in the transmission lines has been from 2708
  ckm in 1950 to more than 200,000 ckm today.

 About 84% of 587,000 villages have been electrified,
  balance to be electrified by 2007.

 55% households have access to Electricity, balance to be
  covered by 2012.



                                                             3
            Present scenario - the challenge

 •   Financial health of SEBs

             40000
                          Business as usual continues
                          Results targeted
             30000


             20000

 Losses
(Rs. Cr.)    10000


                0
                     1992 1994 1996 1998 2000 2002 2004 2006 2007

                           Years                                            4
                                                                Contd. ..
    Present scenario - the challenge                               Contd. …..



•    Power : removing shortages and improving Reliability & Quality

                 15

                                            Results targeted
                 10



    Peaking      5
    Shortage %


                 0
                          2003     2005     2007        2010     2012
     Installed
     Capacity         108,000 MW          146,000 MW           212,000 MW       5
        POWER SECTOR DEVELOPMENT

OBJECTIVES           STRATEGY                 ACTION


• Sufficient power        Generation                
  for 8% growth           Transmission              
• Reliable power          Distribution              
• Quality power           Regulation                
• Inexpensive
  power                   Financing                 

• Commercial              Conservation              
  viability               Communication             
• Power to All            Legislative initiatives   


                                                         6
              Power Generation

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

                                    7
# ACTION
 Strengthened monitoring effort
 Advance Action plan for projects identified / under
  approval stage
 Expansion of existing stations
 Pit head stations
 Coastal stations
 Generation delicensing
 Captive capacity utilization
 Select IPPs to be assisted
 R&M of old plants (AG&SP)
                                                        8
              Transmission

# STRATEGY

 National Grid

 Interstate connections

 Technology upgradation

 Optimization of Transmission cost




                                      9
# ACTION
 Development of National Grid
     : 8000 MW today to 30,000 MW of inter regional
       transfer capability by year 2012
 Technology upgradation
 RLDCs modernization
 Close monitoring on reliability
 Private participation
    Independent Power Transmission Co.
    Joint Venture with Powergrid
                                                      10
                    Distribution
# STRATEGY
Distribution Reforms aimed at
 System upgradation
 Loss reduction (Aggregate Technical & Commercial
                                           losses)
 Theft control
 Consumer orientation
 Commercialization
 Decentralized distributed generation and supply for
  rural areas
 Introducing competition
 I.T. to replace human interfaces
                                                        11
# ACTION
 Energy accounting
 Metering
 Organization restructuring
 Franchisees
 Technology input
 Anti theft laws
 Accelerated Power Development & Reform Programme
                                            (APDRP)
  • Incentive linked development package
  • Five years Business plan
  • Reliability index
  • Rating of utilities
 Rural Elect. Supply Technology Mission (REST)
 Accelerated Rural Electrification Programme (AREP)   12
                     Regulation
# STRATEGY
 Commercial viability
 Consumer services & satisfaction
# ACTION
 Tariff policy
 Multi year tariff approach
 To bring about commercial viability : Planning &
  monitoring by Regulatory Commissions
 Grid discipline
 Development of competitive energy market
 Consumer services
 Quality, reliability & safety
 Growth of power industries
   •   Collaborative efforts of Government and Regulatory
       Commissions                                          13
                      Financing
 Performing Central Undertakings on their own
 One time settlement of outstanding dues of CPSUs
 Central Govt. Plan allocation for Xth Plan up by 270%.
 NTPC, Powergrid, PFC, REC, the           major   Central
  Undertakings to access equity market.
 All Central undertakings to access debt market up to
  debt leveraging scope
 External assistance from JBIC, ADB, World Bank etc.
 Other Investors/ Lenders to finance based on progress
  on reforms.
 Discussions on with major Business groups to invest
  in the Sector.
                                                             14
                Conservation

# STRATEGY

 Demand Side management

 Load management

 Technology upgradation to provide energy
  efficient equipment / gadgets.




                                             15
# ACTION
 Bureau of Energy Efficiency.
 Notified industries.
 Interface with IEEMA & other Industry Bodies.
 Awareness.
 Demand Side Management
 Specifications / Labelling / Norms
 Certification agency.
 Energy audit.
 25,000 MW saving potential to be achieved by 2012.

                                                       16
            Communication


 Political consensus.

 Public Awareness

 Media support




                            17
                        Legislative
 Electricity Act, 2003 - notified on 10th June ‘03 :
       Creates liberal framework for power development
       Facilitates private investment
       Delicenses generation : Captive further liberalised
       Multiple licencess in Distribution
       Creates competitive environment
       Stringent provisions      for    controlling    theft   of
        electricity
       Empowers States to restructure Electricity Boards
       Mandates creation of Regulatory Commissions
       Open access on Transmission & Distribution
       Power marketing / trading
                                                                     18
                     The way forward
•   Reforms leading to commercialization of Distribution sector
•   Sector viability in medium / long term to support investments
•   Decentralized distribution / generation for electrification of
    rural areas
•   Streamlined / exemption in clearance procedures along with
    delegation to States
•   Amicable project specific R&R packages
•   Public sector investments have been stepped up during
    transition period
•   Funding for Generation (Hydro & Thermal), Transmission and
    Rural Electrification
•   The Sectoral development should now get the boost with
    confidence and cooperation of Promotors, Investors and
    Financial Institutions
                                                                  19
Thank You
    Ministry of Power
         Website
  http://powermin.nic.in

                           20

								
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