India_Energy_Handbook by VishalThakkar2

VIEWS: 371 PAGES: 32

									                                 2011
                                 INDIA
                                 Energy
                                 Handbook




Demand Driven, Supply Chained

 Contents

  4 Overview of primary energy

  7 Energy policy

 11 Electricity sector

 23 Oil & Gas sector

 26 Coal sector

 29 Information resources        PSI Media Inc • August 2010
                                                                           2011 India Energy


                                          I
                                                 ndia, home to 1.2 billion people and over 17% of the world’s
       India Energy                              population, has a seemingly unquenchable thirst for energy.
        Handbook                                 One harsh result of its meteoric growth is the widening gap
         Editorial Staff                         between required energy and that which is produced. Herein
         Scott G Schwieger                lies the problem. India is unable to keep up with demand and faces
            Editorial Director            growing pressure from the international community for climate
          scott@psimedia.info             change mitigation. A concerted effort by the central and state
       Thomas F Armistead                 governments, and the growing importance of private sector access
           Senior Editor                  and investment, will drive India into the future.
        Sridhar Samudrala
      Dr Usha Ramachandra                 Foreign direct investment into India ranked third globally at over $35
         Consulting Editors               billion for FY 2009. This number is expected to increase greatly in
           Kiyo Komoda                    the coming years because of a policy roadmap by the Government
           Creative Director              of India that is increasing the liberalization of the nation’s economy,
         Clark G Schwieger                especially in the energy sector. Initiatives include ambitious five-
       Special Projects Manager           year plans for increasing installed electricity infrastructure, the New
          Giorgio Dodero                  Exploration and Licensing Policy for increasing the production of oil
         Technical Consultant             and gas, and the nuclear sector’s recent embrace of international
      Robert G Schwieger Sr               companies to provide equipment and related services.
             Publisher
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    Brazil Energy Handbook                opportunities for investment in the Indian Energy
     India Energy Handbook                sector. Headed by Sridhar Samudrala, IECC offers a          Samudrala
      Central Europe Energy               great deal of insight into Indian affairs.
             Handbook
                                          Regarding the current business climate in India, Samudrala says it
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                                                        3
                          Overview of
                         primary energy


                                                               Hydro takes a back seat. Hydropower now accounts for about 25% of India’s
                                                               generation capacity, down from 40% in 1980. The favorable economics of developing
                                                               thermal generation coupled with difficulty in securing long-term financing presents a
                                                               substantial roadblock for large-scale hydro development.

                                                                                                                                                     Jaiprakash Associates




 W
                  ith 15% of the world’s                        The Government of India’s (GoI)                 the country off from cooperation and
                 population and an economic                 Planning Commission predicts dramatic               assistance in civil nuclear technology.
                 growth rate that increases the             demand increases for coal and oil over the              In 2008, India and the Nuclear Suppliers’
                 aspiration of its people to better         next 20 years. Fig 1-1 and Table 1-2 shows          Group agreed on a waiver to the embargo
 quality of life, India has a voracious appetite            projections of India’s energy requirements          on trade in nuclear technology. The waiver
 for energy. But the country lacks sufficient               in its Integrated Energy Policy (IEP) report        has removed most of the obstacles, and
 domestic energy resources, particularly                    published in August 2006.                           India now is planning to have 63,000 MW
 of petroleum and natural gas, and must                         Nuclear energy now contributes                  of nuclear generating capacity by 2032.
 import much of its growing requirements.                   more than 4,000 MW of power using a                     India’s long-range plans, however,
 Currently, about 35% of India’s commercial                 largely indigenous technology, but the              foresee coal as the sector with the most
 energy needs are imported. Table 1-1                       nuclear industry’s development has been             growth potential, fueled mostly by demand
 indicates the primary commercial energy                    hamstrung by India’s refusal to sign the            for power generation (Fig 1-2).
 consumption in India.                                      Nuclear Non-Proliferation Treaty, cutting               Coal reserves are mainly in the eastern
                                                                                     600
   1800      Fig 1-1. Total Energy Requirements                                             Fig 1-2. Total Primary Energy                                          les
                                                                                                                                                       ne    wab
             Source: IEP Report, Page 28, Table 2.10                                        by Source, 1980-2030                                  w re
                                                                                                                                                Ne
   1600                                                                              500    Source: USAID, From Ideas to Action: Clean Energy            ro
                                                                                            Solutions for Asia to Address Climate Change,            Hyd
                                                                                            India Country Report
                                                                                                                                                         lear
   1400                                      Hydro                                                                                                   Nuc
                                                                                                                                                                as
                                                                                                                                                          ral g
                                             Nuclear                                 400                                                             Natu
   1200
                                                          as                                                                                           Oil
   1000                                              ralg
                                                                                  MTOE




                                                 atu
MTOE




                                               N                                     300
       800
                                                Oil
       600                                                                           200                                                               Coal

       400
                                                                                     100
       200                                      Coal
                                                                                                                                                      Biomass
         0                                                                               0
          2011-12       2016-17         2021-22             2026-27       2031-32        1980      1990           2000            2010          2020             2030

                                                                                 4
                                                                                                        2011 India Energy
                              Fig 1-3. India Energy
                              Resource Map                                   300
                                                                                     Fig 1-4. Industrial Energy Demand
                                                                                              by Fuel, 2005-2030
                 Delhi                                                       250
            Jaipur
                                                  Guwahati
         RAPP
                                      Kolkata                                200

                   Bhopal
                                                                                                                    Biomass




                                                                      MTOE
                              Talcher &
                              IB Valley                                      150
           Tarapur
 Mumbai                                     Legend                                                                  Electricity
                 Hyderabad                       Load centre                                                          Gas
                                                                             100
             Kaiga                               Coal
                                                                                                                       Oil
             Bangalore
                                                 Hydro
                                                                              50
                          Chennai
                                                 Lignite                                                              Coal
                                                 Coastal
                     Kudankulam                                                0
                                                 Nuclear                           2005      2010           2015             2020           2025           2030
                                             Source: Powergrid                                                          Source: IEA, World Energy Outlook (2007)


region while the load centers are growing
rapidly in the southern, western and
                                                     Impact of                                              n UN Framework Convention on Climate
                                                                                                                Change – ratified in 1993
northern part of the country. But coal’s             environmental                                          n Kyoto Protocol – ratified in 2002
appeal lies in the facts that coal-fuelled           regulations                                            n Establishment of National Clean
power plants are less costly per installed                                                                      Development Mechanism Authority
megawatt than most other designs.                    Total carbon-dioxide emissions in the                      (CDM) in 2003
Mining of India’s large coal deposits can            country have been gradually increasing                 n 337 CDM projects are currently
be expanded relatively cheaply, with the             and are expected to increase sharply in                    registered with the UNFCCC with
product shipped by rail to the power                 the next 20 years as India enters a period                 estimated annual emission reduction
plant.                                               of sustained economic growth and higher                    of 31.62 million tonnes of CO2 per
     The bulk of India’s hydro potential, in         consumption of energy.                                     year
contrast, is in the northeastern region                  Over 50% of the total CO2 emissions are                Still, India is facing enormous
and the northern part of the country in              from the power sector. Cement, shipping,               international pressure to reduce its
the Himalayas. The distribution of energy            and iron and steel are other industries that           greenhouse-gas emissions under a
resources and load centers is consequently           have experienced annual growth rates                   successor agreement to the Kyoto
much skewed. The medium and long-                    above 4% between 1985 and 2005. In                     Protocol that is now in development. In
term plan is to promote pithead stations             fact many industries have great potential              June 2008, the National Action Plan on
using domestic coal and coastal stations             for improving energy efficiency through                Climate Change (NAPCC) was announced
using imported coal and to strengthen                use of combined heat and power (CHP).                  as a major move toward reducing carbon
the inter-regional transmission systems. Fig         The primary driver for CHP is economic,                intensity, but its real effect is still unclear
1-3 illustrates the distributions of energy          but it is also an effective means of reducing          (see p. 10).
resources across India.                              CO2 emissions.                                             What is obvious is that India will have
     Coal is expected to continue to meet                Over the past two decades, the GoI                 to choose between increasing its fossil-fuel
India’s energy needs in a significant                has been very active in participating in               use and reducing its emissions; it cannot do
way for power generation and other                   international efforts for climate change               both. Investors should keep this uncertainty
industrial purposes. Fig 1-4 illustrates the         mitigation:                                            in mind and closely watch developments in
industrial energy demand by fuel in India            n Vienna Convention – ratified in 1991                 Indian climate-change policy to make the
till 2030.                                           n Montreal Protocol – ratified in 1992                 wisest use of their investment capital.


  Table 1-1. Commercial Energy Consumption                                           Table 1-2. Total Energy Requirements (MTOE)
  Source                    Unit            2007-08              2008-09*                                                              Natural
  Petroleum Products        MMT              140.7                145.3              Year       Hydro Nuclear       Coal       Oil      Gas           Total

  Natural Gas (net)         BCM               31.5                 31.8              2011-12      12       17       283        186         48           546
  Coal                      MMT              457.1                493.3              2016-17      18       31       375        241         64           729
  Lignite                   MMT               34.0                 NA                2021-22      23       45       521        311         97           997
  Electricity               Billion kWh      813.1                842.8              2026-27      29       71       706        410       135         1,351
  Source: Basic Statistics on Indian Petroleum and Natural Gas, 2008-09,             2031-32      35       98       937        548       197         1,815
  Ministry of Petroleum & Natural Gas, New Delhi
  * Estimate                                                                         Source: IEP Report, Page 28, Table 2.10


                                                                               5
Opportunities for foreign investment in India’s energy infrastructure
In the first decade of the 21st century,              Electric generation. Plans now are          amount of distribution cable that if placed
cumulative foreign direct investment (FDI)        being developed for the augmentation            end to end would circle the equator more
in India totaled more than $160 billion.          of the power sector’s capacity required         than 40 times.
Beginning with a modest $4 billion                in the XII Plan period, 2012-2017. The               The 250,000 circuit breakers required
between April 2000 and March 2001, FDI            goal is to add a total of 100,000 MW of         (50,000 annually) nearly consumes
rose to $9 billion in 2005-2006, then shot        capacity--76.5% powered by coal and             India’s current production capability of
up dramatically. For the 2009-2010 period,        lignite; 20% by hydroelectric resources.        59,000 breakers, the 14 million meters
total FDI flow into India is expected to          Required investment needed to develop           required annually is well above the 12.5
surpass $34 billion, roughly on a par with        this generation infrastructure is estimated     million that the country could produce in
the two previous years.                           at nearly $100 billion.                         2009 (according to the Indian Electrical
     The power sector ranked sixth among              A presentation in August 2009 by            & Electronics Manufacturers Assn.), and
the leading sectors of the Indian economy,        the Central Electricity Authority at the        the total requirement of 190,000 MVA in
attracting $4.6 billion in FDI since 2000,        “International Conclave on Key Inputs for       distribution-transformer capacity exceeds
according to the Ministry of Commerce             Accelerated Development of the Indian           current annual production capacity by
and Industry’s Department of Industrial           Power Sector for the XII Plan and Beyond”       more than 3,000 MVA.
Policy & Promotion. Adding in the electrical      suggested that the aggregate capacity of             Gas value chain. Investments in
equipment sector, the total rises to $6.8         supercritical generating units would total      LNG terminals and gas transmission and
billion. FDI in petroleum and natural gas         43,600 MW of the coal/lignite component.        distribution pipelines, although significant,
totaled $2.7 billion for the period, ranking      More specifically, 27 projects would be         pale in comparison to those required by the
that sector ninth in foreign investment.          built with a total of 64 units in the 660-800   electric sector. While data for the XII Plan
Restrictions on FDI in coal production            MW range. Another 18 projects having 34         were not readily available at press time,
caused that sector to rank 54th, with just        subcritical units in the 500-600-MW range       a look at spending to achieve the XI Plan
$15.6 million for the decade.                     also would burn coal or lignite. Smaller        offers some insights.
     Space is lacking for a detailed breakdown    subcritical units would make up the balance          In round numbers, $2 billion for LNG
of all the energy sectors eligible for FDI, but   of the 76,500 MW.                               terminals, $4.5 billion for transmission
a sampling of data for the largest sector             With coal playing a very significant        pipelines, and nearly $2 billion for
in that group--power--suggests the scope          role in India’s energy future substantial       distribution infrastructure in cities.
of opportunities that are available. Up           investments will be required to boost                Of course, upstream activities in the gas
to 100% foreign direct investment, with           annual production of the fuel to the 900        sector (exploration and production) are in
amounts unlimited, is allowed for most            million tonnes required. Current thinking is    addition to the investments required for
projects relating to electricity generation,      that domestic sources would supply 845          terminals and pipelines. Planned upstream
transmission, and distribution, but not for       million tonnes, imports the balance.            outlay to achieve the XI Plan was more
nuclear power plants. In the renewable-               Electric distribution. Required             than $30 billion, but internal resources
energy sector, too, 100% FDI is allowed           investment in the distribution sector is        fell short by about 30%--thereby creating
and a generation-based incentive scheme           estimated at $86.4 billion for the XII Plan.    opportunities for foreign investment.
has been put in place for wind power              The infrastructure that must be installed            Looking ahead, supply options to meet
projects especially for the foreign investors     to meet the five-year plan is staggering:       growing demand include the following:
who cannot take advantage of the benefits         2.5 million poles for 33-kV overhead lines,     n New domestic sources. Attention
of accelerated depreciation, as domestic          another 9.4 million poles for other lines            currently focuses on the East Coast,
investors can.                                    rated above 11 kV, and 20 million poles              offshore.
     Some financial institutions owned by the     for low-tension lines. More than 50 million     n Transnational pipeline imports. Routes
Government exist specifically to meet the         service connections would be added.                  include Iran-Pakistan-India; Turkmenistan-
needs of the energy sector. For example,              The 33-kV lines planned total 180,000            Afghanistan-Pakistan-India; Myanmar-
the Power Finance Corporation (PFC) and           circuit kilometers, 11-kV lines 750,000 ckm,         India.
the Rural Electrification Corporation (REC)       and low-tension lines 800,000 ckm. To           n New LNG imports on the West Coast
serve the financing needs of the power            put these numbers in perspective, India is           via Dabhol, Kochi, Dahej (expansion),
sector across the electricity value chain.        planning to install in only 60 months an             and Mangalore.

Major trade organizations
Indian Electrical and Electronics                 organizations from the private as well as       industry. Through its 400 professionals,
Manufacturing Association (IEEMA)                 public sectors and an indirect membership       FICCI is active in 39 sectors of the economy.
Founded in 1948, IEEMA represents                 of over 90,000 companies from around 396        FICCI’s stand on policy issues is sought out
the entire Indian electrical and industrial       national and regional sectoral associations.    by think tanks, governments and academia.
electronics industry. IEEMA promotes and          CII has a strong energy sector presence         Its publications are widely read for their
protects interests of the Indian companies        and advocates the industry viewpoint            in-depth research and policy prescriptions.
active in the industry and is invited to          with government and policy makers.              FICCI has joint business councils with
represent the sector on many councils and         http://www.cii.in                               79 countries around the world. A non-
committees constituted by the governments.                                                        government, not-for-profit organization,
http://www.ieema.org                              Federation of Indian Chambers of                FICCI has direct membership from the private
                                                  Commerce and Industry (FICCI)                   as well as public sectors and an indirect
Confederation of Indian Industry (CII)            Established in 1927, FICCI is one of the        membership of over 83,000 companies
CII is India’s premier industrial association,    largest and oldest business associations in     from regional chambers of commerce.
with a direct membership of over 7,800            India and the voice of India’s business and     http://www.ficci.com


                                                                       6
                                                                                            2011 India Energy
                                                     The August 2006 Report of the              electricity and downstream petroleum and
                                                 Expert Committee on Integrated Energy          natural-gas sectors. The Central Electricity


Energy                                           Policy (IEP) for the first time analyzed the
                                                 resource options for India’s energy needs.
                                                 It comprehensively examined all sources
                                                 of energy, including renewables. The IEP
                                                                                                Regulatory Commission (CERC) regulates
                                                                                                interstate transactions and business, and
                                                                                                each state has a State Electricity Regulatory
                                                                                                Commission (SERC) for intrastate transactions.


policy                                           forecasted energy demand up to 2031-32
                                                 and made broad recommendations to
                                                 optimally meet the surging demand.
                                                     It concluded that coal, particularly
                                                 domestic coal, would continue to fuel
                                                                                                Much of the regulation covering electricity
                                                                                                generation and transmission stems from
                                                                                                the CERC (and is by and large followed
                                                                                                by the SERCs), while SERCs have exclusive
                                                                                                jurisdiction on electricity distribution in the
Planning and policy                              the power sector in the country. Since         respective states.
                                                 then, the possibilities of exploring nuclear       The Petroleum and Natural Gas
India’s four-decade-long experiment with         energy as well as the discoveries of natural   Regulatory Board (PNGRB) regulates
a state-owned economy has evolved                gas have somewhat tilted the balance. The      downstream activities in the petroleum and
since a 1991 crisis forced the country to        energy sector is overseen by the following     natural gas sectors. The upstream activities
liberalize its economy. It now allows greater    GoI ministries:                                continue to be regulated by the central
individual initiative and, importantly,          n Ministry of Power                            government through the Directorate
foreign direct investment. Federal- and              (http://powermin.nic.in/)                  General of Hydrocarbons.
state-owned companies still dominate the         n Ministry of Petroleum and Natural Gas
energy industry, but the private sector is           (http://petroleum.nic.in/)                 Power sector
actively capturing market share and even         n Ministry of New and Renewable Energy
investing in the state-owned companies.              (http://mnre.gov.in/)                      India’s power sector continues to be a
    Energy policy and planning are largely       n Ministry of Coal                             stumbling block for its infrastructure growth
controlled by the central government                 (http://coal.nic.in/welcome.html)          and overall development. Energy and
in India’s federal political setup. While        n Department of Atomic Energy                  peak shortages abound and transmission
the central government alone controls                (http://www.dae.gov.in/)                   and distribution losses continue to be
planning and policy related to fossil fuels          The Planning Commission is in overall      unreasonably high.
such as coal, natural gas, and petroleum,        charge of developing India’s five-year            The Government of India began
the constitution outlines both the state         plans across the ministries and sectors.       liberalizing the power sector in India
and central government’s responsibility for      Since the public sector continues to play a    in 1991 by opening up the sector to
electricity policy and planning. The Planning    dominant role in the energy sector in India,   private investments in generation. The
Commission of the GoI is responsible for         the ministries wield enormous power and        key legislative and policy interventions in
planning for power, energy, energy policy,       influence in the way the sector develops       India have been:
and rural energy within the framework of a       and is managed.                                n The Electricity Act 2003 (http://
succession of national five-year plans. States       The framework for independent                 www.cea.nic.in/home_page_links/
take responsibility for power delivery.          regulation has been established for the           ElectricityAct2003.pdf)




                                                                                                                                                  Jindal Steel and Power




OP Jindal coal plant. Already the largest coal-fired IPP in India (1000 MW), a brownfield expansion consisting of 4 x 600-MW units supplied
by BHEL is underway. The site is also home to the largest private coal mine, coal washery, and covered coal conveyor belt in India.

                                                                     7
n National Action Plan on Climate Change
   (http://pmindia.nic.in/Pg01-52.pdf)
n National Electricity Policy 2005 (http://
    www.cea.nic.in/planning/national_
    Electricity_policy.htm)
n National Tariff Policy 2006 (http://
    www.powermin.nic.in/whats_new/
    pdf/Tariff_Policy.pdf)
n Rural Electrification Policy 2006 (http://
    www.powermin.nic.in/whats_new/
    pdf/RE%20Policy.pdf)
    The basic aim of the Electricity Act
2003, which consolidated the provisions
of all previous legislation, was to take
measures conducive to the growth of the
electricity sector in the country, to promote
competition, to protect consumers’ interest,
to rationalize tariffs, and to promote efficient
and environment-friendly policies. Its main
features are:
n Delicensing electricity generation
n Mandating restructuring of state
    electricity boards to separate transmission
    (wires business) and trade
n Allowing for open access on transmission




                                                                                                                                                    KSK Energy Ventures
    and distribution networks
n Facilitating electricity trading
n Mandating the establishment of SERCs
    in each state.
n Liberalizing captive or self-generation
n Setting up the Appellate Tribunal for
    Electricity (ATE)                              Sai Regency combined-cycle plant. This 58-MW CHP plant in Tamil Nadu supplies
                                                   steam and electricity to multiple industrial customers. The addition of 2000 MW of CHP
    In addition, the focus was widened to          generation is included in the XII Plan to increase the reliability of steam and electricity supply
upgrade and improve the financial and              for industry and hospitals.
operational efficiency of the distribution
companies. A massive funding scheme
of the GoI called the Accelerated Power             Table 2-1. Structure of the Indian Power Sector
Development and Reform Program (APDRP)
was initiated to provide funds to State             Policy Making          Central Government
                                                                           State Governments
Electricity Boards and distribution companies
to improve system efficiency and provide            Planning               Central Electricity Authority (Planning Commission under
incentives for better performance.                                           Central Government)
    The National Electricity Policy 2005,                                  State Planning Departments
which introduced the concept of universal           Regulation             Central Electricity Regulatory Commission (Appellate Tribunal
service, mandated that all villages should be                                for Electricity)
electrified by 2007-2008 and all households                                State Electricity Regulatory Commissions (Ombudsman in
by 2011-2012. Table 2-1 outlines the                                         each SERC)
structure of the Power sector in India.             System Operators       National Load Despatch Centre
    The GoI’s Ministry of Power (MoP) is                                   Five Regional Load Despatch Centres
responsible for planning, formulating                                      State Load Despatch Centres
policies, processing of projects for                Generation             Central Generating Stations (e.g. NTPC, NHPC)
investment decision, and monitoring of                                     Joint Ventures – Centre & State (NEEPCO, THDC, DVC)
the implementation of power projects.                                      State Generating Stations (e.g. APGENCO, Mahagenco)
The Central Electricity Authority (CEA) is a                               Independent Private Producers (e.g. GVK, Spectrum, etc)
statutory body constituted by the central           Transmission           Central Transmission Utility (PGCIL)
government that functions under the                                        State Transmission Utilities (e.g. APTransco, KPTCL)
Electricity Act 2003. The CEA is responsible                               Private entities (e.g Lanco, Reliance, Tata )
for formulating the National Electricity Plan       Traders                Traders designated to trade across borders (PTC)
in accordance with the National Electricity                                Inter-state traders (e.g. LANCO, NTPC etc.)
Policy, once in five years.                                                Intra-state traders
    The CEA is the main technical adviser           Distribution           Distribution arm of State Electricity Boards (e.g. TNEB, PSEB etc.)
to the government and regulatory                                           Distribution Companies (e.g. Reliance, Tata, Bescom, etc.)
commissions. It is also required to                                        Private Companies (e.g. Reliance Infra, NDPL, CESC, etc.)
specify technical standards and safety                                     Franchises (e.g. Torrent)
requirements for the construction,                  Financial Institutions Power Finance Corporation (PFC)
operation, and maintenance of electrical                                   Rural Electrification Corporation (REC)
lines and setting up of electrical standards.       Energy Conservation Bureau of Energy Efficiency (BEE)
Any generating company intending to set

                                                                         8
                                                                                                    2011 India Energy




                                                                                                                                                         Nuclear Power Corp of India
Cairn




        The Mangala Development Pipeline is the world’s longest continuously Big plans for nuclear. While there is currently a prohibition
        heated and insulated pipeline and has an access to 75% of India’s refining   on FDI for nuclear power plants, installed capacity is expected
        capacity. It originates from Mangala Processing Terminal and runs 670 km     to increase tenfold by 2020 to 44,000 MW. By 2050, the
        through Rajasthan and Gujarat before it reaches its end near Jamnagar        GoI expects nuclear energy to supply 25% of the country’s
        on the western coast line of India.                                          power.

        up a hydropower generating station also changes in the structure of the Indian oil               All 10 oil discoveries in 2007-08 were
        requires the concurrence of the CEA.            industry as well as increased the rate of made by private oil companies like Reliance
             The Electricity Act 2003 and the exploration of the sedimentary basin area of Industries Ltd. (RIL), Cairn and Essar Oil
        subsequent policies of the government, the country from 11% to more than 44%.                 Ltd. (EOL). The GoI is examining the
        especially the Ultra Mega Power Projects           The NELP opened India’s oil and gas possibility of introducing the Open Acreage
        (UMPPs) under the competitive bidding sector to private-sector participation through Licensing Policy (OALP) to allow year-round
        route, are expected to add substantial international competitive bidding for blocks bidding for blocks to explore rather than
        thermal capacity. In 2008, the GoI under a production-sharing contract with waiting for the government to identify
        promulgated the Hydro Power Policy the GoI. National Oil Companies (NOCs) blocks for exploration. Recently, there has
        to encourage private investments, continue to account for a major share of been a thrust towards NOCs acquiring
        improve resettlement and rehabilitation crude oil and natural gas production, but hydrocarbon assets abroad to meet the
        and enhance the financial viability of there has been a significant increase in country’s need for energy security and
        hydropower development. Earlier in private participation.                                     accelerating demand.
        2007, the MoP had issued the                                                                                With the increasing presence
        approach and guidelines for the       Table 2-2. Structure of the Indian                                of private players and the move
        development of merchant power         Petroleum and Natural Gas Sector                                  towards increasing the extent of
        plants (MPPs).                                                                                          gas distribution in the country,
             Two main programs of the GoI     Policy Making Ministry of Petroleum and Natural Gas               the Petroleum and Natural Gas
        are aimed at improving electricity    Planning         Ministry of Petroleum and Natural Gas            Regulatory Board (PNGRB) was
        distribution. The APDRP provides                       Planning Commission                              set up under the PNGRB Act
        loans and grants to augment                            Petroleum Planning and Analysis Cell (PPAC)      2006. The PNGRB regulates the
        investments in distribution system                     ATE with a separate bench to hear petroleum      refining, processing, storage,
        upgrades. The Rajiv Gandhi                                and natural gas cases                         transportation, distribution,
        Grameen Vidyutikiran Yojana           Regulation       Directorate of Hydrocarbons under the GoI        marketing, and sale of crude oil,
        (RGGVY), launched in 2005,                               (upstream)                                     petroleum products, and natural
        aims at electrifying all villages and                  Petroleum and Natural Gas Regulatory Board       gas. It also protects the interests of
        providing access to electricity to                       (downstream)                                   consumers and entities engaged
        all rural households over a period                             Public Sector        Private Sector      in specified activities in these areas
        of four years.                        Upstream (Exploration        ONGC                 Cairn           and is responsible to ensure
                                                & Production)              OIL                  Hardy           uninterrupted and adequate
                                                                           OVL                                  supply of crude oil, petroleum
        Petroleum and                                                      GSPC (State Sector)                  products, and natural gas to
        natural gas                           Refineries                   CPCL                 RPL             all parts of the country and to
                                                                           BRPL                 Essar           promote competitive markets.
        India’s petroleum and natural-                                     NRL                                      The PNGRB issued guidelines
        gas sector relies heavily on                                       MRPL                                 relating to city gas distribution
        government-run oil companies          Marketing Companies          GAIL                                 network and natural gas
        as seen in Table 2-2.                                              IGL                                  pipelines in 2007-08 and 2008-
             India conducted nine rounds                                   MGL                                  09. However the upstream oil
        of exploration bidding between        Integrated Oil                IOCL                RIL             and gas business continues to
        1979 and 1995, but they were not        Companies                  HPCL                 EOL             be regulated by the Directorate
        successful. The New Exploration                                    BPCL                 Shell           of Hydrocarbons (DGH). The
        and Licensing Policy (NELP)           Financial Institution        OIDB                                 DGH operates under the
        introduced by the government                                                                            Ministry of Petroleum & Natural
        in 1997-98 brought about major        Source: IECC                                                      Gas (MOP&NG) as a regulator

                                                                             9
                                                                                               renewable-energy-based power projects
  Table 2-3. Structure of Renewable Energy in India                                            on a Build-Own-Operate (BOO) or a
  Policy Making          Central Government, Ministry of New and Renewable Energy              Build-Own-Transfer (BOT) basis. Investors
  Planning               Planning Commission, Ministry of New and Renewable Energy             are allowed to bring in funds directly,
  Regulation             CERC at the Centre                                                    incorporate an Indian company, or allot
                         SERCs at the State                                                    shares to foreign investors.
                         ATE Orders where applicable                                              With the announcement of the
                                                                                               National Action Plan on Climate Change
                         Public Sector      Private Sector
                                                                                               (NAPCC), there is a marked shift in policy to
  Equipment                                 Suzlon                                             diversifying the energy mix to lower carbon
   Manufacturing                            Enercon                                            intensity. The NAPCC calls for boosting
   and Generation                           Tata BP Solar                                      renewable energy’s share of the national
   Companies                                NEG-Micon                                          generation from 2% to 5%, with specific
                                            Vestas-RRB
                                                                                               emphasis on significantly increasing solar
  Financial Institution IREDA                                                                  energy’s share of the total energy mix. It
                                                                                               envisions increased use of distributed solar
  Table 2-4. Structure of the Indian Coal Sector                                               photovoltaic cells, but also, as technology
                                                                                               permits, commercial-scale solar-reflector
  Policy Making    Central Government                                                          generating stations.
                   State Governments
  Planning         Office of the Coal Controller under the Central Government                  Coal
  Regulation       Office of the Coal Controller under the Ministry of Coal
                                                                                               The Ministry of Coal is the apex organization
  Mining Companies Coal India Ltd. and its Subsidiaries (94% market share)                     responsible for the development of coal
                   Neyveli Lignite Ltd. (CPSUs)                                                and lignite in the country. It has the overall
                   Singareni Collieries Ltd.; captive mining for state government
                    companies                                                                  responsibility for determining policies and
                   Private coal blocks for captive mining                                      strategies for exploring and developing coal
                                                                                               and lignite reserves, sanctioning important
  Mining Equipment Bharat Earth Moving Equipment Ltd. (CPSU)                                   projects of high value and deciding all
  Source: IECC                                                                                 related issues. The coal sector continues
                                                                                               to be dominated by government-owned
                                                                                               companies with no significant private-sector
 Table 2-5. Structure of the Nuclear Sector in India                                           presence, and foreign direct investment is
 Policy Making            Central Government / Department of Atomic Energy                     restricted (see p. 6). Table 2-4 outlines the
   & Planning                                                                                  framework of India’s coal industry.
 Regulation               Atomic Energy Regulatory Board / Atomic Energy Commission                In December 2000, the GoI loosened
 Generation               Nuclear Power Corporation of India Ltd. (NPCIL)                      the restrictions on state government
   Companies              BHAVINI                                                              companies to allow them to mine coal and
                                                                                               lignite reserves anywhere in the country,
 Input Providers          Heavy Water Board (HWB)                                              subject to certain conditions. Since 2004,
                          Nuclear Fuel Complex (NFC)
                          Indian Rare Earth Ltd (IREL)                                         the GoI has engaged in allocating large
                          Uranium Corporation of India Ltd. (UCIL)                             areas/blocks to government companies
                                                                                               (both central and state). Preference is being
 Financial Institution    Board of Research in Nuclear Sciences (BRNS)                         given to government power utilities.
 Source: IECC

to advise the MOP&NG on exploration                which in 2008 generated 113.85 billion
                                                                                               Nuclear energy
strategies and production policies.                kWh. Wind energy was a distant second,      The Department of Atomic Energy is
    Oil and natural gas exploration and            with 14.8 billion kWh. Comparatively,       mandated to increase the share of nuclear
production, refining, and distribution,            energy from other renewable sources         power using both indigenous and other
as well as the marketing, import, export,          was negligible or non-existent. Table 2-3   proven technologies, and also developing
and conservation of petroleum products             summarizes the structure of the renewable   fast breeder reactors and thorium reactors
and liquefied natural gas fall under the           sector in India.                            with associated fuel-cycle facilities. Table
responsibility of the MOP&NG.                          The Electricity Act 2003 provides the   2-5 illustrates the central government’s
    The government continues to regulate           legislative impetus for the development     influence over the nuclear sector.
prices for both petroleum and natural gas          of renewable energy in part by directing        The signing of the Indo-U.S. nuclear
through the Petroleum Planning & Analysis          the CERC and SERCs to fix renewable         deal in October 2008 has opened up
Cell (PPAC), attached to the MOP&NG.               power purchase obligations (RPPOs) for      opportunities for the growth of nuclear
                                                   all distribution companies under their      power in the country. The Nuclear Power
Renewable energy                                   jurisdiction. The regulatory commissions    Corporation of India Ltd.( NPCIL), the only
The renewable-energy sector is administered        can also determine preferential tariffs     nuclear power generating company in
by a separate line ministry, but it is regulated   for renewable power to make it more         the country, aims to increase its installed
by the CERC and SERCs along with the               competitive with conventional sources on    capacity from 4,120 MW to 21,000 MW in
power sector. The Ministry of New and              cost of electricity.                        the next five years, but GoI policy prohibits
Renewable Energy (MNRE) plans and                      Foreign direct investment up to 100%    foreign direct investment in nuclear power
promotes the development of all sources            is allowed under the automatic route and    plants (see p. 6) .
of renewable energy. By far the largest            can set up a wholly-owned subsidiary.           In summary, India’s power, petroleum,
renewable-energy source is hydropower,             Foreign investors are allowed to set up     and natural gas sectors have mostly opened

                                                                     10
                                                                                                                        2011 India Energy
                                                                                                                              Private power growth. Lanco Amarkantak
                                                                                                                              Power Ltd. is adding 2 × 660-MW units
                                                                                                                              to its coal-based generating station in
                                                                                                                              Chhattisgarh to increase plant output to
                                                                                                                              1920 MW. Project financing was secured
                                                                                                                              through the state-run Project Finance Corp.
                                                                                                                              under XI Plan.




                                                                        Electricity sector
V A Chakrarthy




                                                                        P
                 up to the private sector and market-based                      ell-mell load growth driven by the                Spikes in power demand from the
                 interventions even while government-                           fast-expanding economy has left               agricultural sector are forcing state
                 owned entities continue to dominate                            India scrambling to catch up with             governments to increase load shedding
                 the sectors. Private-sector participation              electricity demand as power outages bedevil           in the summer months. For example, the
                 is much more limited in the coal sector,               the country. The Electric Power Survey 17             power deficit in state of Punjab is so severe
                 with captive mining for industries as well             forecasts a peak demand growth of 9% for              that it has mandated a one-day-per-week
                 as state government-owned organizations                the period up to the end of the XI Plan (2011-        power cut for the steel manufacturing
                 being the main exception. The nuclear                  12) against actual achievement of 5.3% (Fig           industry, which could be extended to two
                 sector has only recently been opened to                3-1). In 2009, CRISIL research estimated that         days if the situation remains unchanged.
                 other government-owned entities and                    roughly $160 billion would likely be invested         Plans for increased capacity and power
                 most likely will proceed in the form of joint          in the power sector by 2014. About $100               management initiatives are being explored
                 ventures with the incumbent corporation                billion would be in generation, with nearly           to reduce the cost and increase the reliability
                 NPCIL.                                                 half of that from private investors.                  of electricity to customers.

                 2000000                                                                             Fig 3-2. Demand/Supply Forecasts
                            Fig 3-1. Projection of Actual                                           1500                                                                         220
                            Power Requirement                                                       1400            Energy Requirements (TWh)              1392      218
                            Source: Demand Projections from
                                                                                                                                                                                 200
                                                                                                    1300            Energy Availability (TWh)
                            17th Electric Power Survey (EPS) of India
                 1500000                                                                            1200            Peak Load (GW)                                               180
                                                                                                                                                              1098
                                                                                                    1100            Peak Served (GW)*          153                         154   160
                                                                                                                                   969
           GWh




                                                                                                    1000
                                                                                                                                                                                 140
                                                                                                     900                                 821
                                                                                                  TWh




                                                                                                                                                     115                         120
                                                                                                                                                                                       GW




                 1000000                                                                             800
                                                                                                     700      690       100 96
                                                                                                                    624                                                          100
                                                                                                     600
                                                                                                                                                                                 80
                                                                                                     500
                                                                                                     400                                                                         60
                  500000
                                                                                                     300                                                                         40
                                                                                                     200
                                                                                                     100                                                                         20
                                                                                                       0                                                                         0
                         0                                                                                         X Plan                 XI Plan             XII Plan
                        2004 2005 2006 2007 2008 2009 2010 2011 2016 2020                                         2006-07                2011-12              2016-17
                         -05  -06 -07 -08 -09 -10 -11       -12 -17 -21                                    *Extrapolated by PXIL                                  Source: CEA

                                                                                            11
    Table 3-1. Status of Awarded UMPPs
                             Project
    UMPP                    Developer State                 Fuel Linkage                            EPC                                  Schedule
    Mundra                         TPC   Gujarat        26% stake in Indonesia’s             Doosan Heavy Industries .                   Two 800 MW units
                                                         Bumi Resources’ two coal mines & Construction Co.
    Sasan                          RPL   Madhya Pradesh Moher, Moher-Amlohri Extension Reliance Infrastructure Limited              Two units by
                                                         coal blocks at Singrauli Coalfields                                         Dec 2011, all six
                                                                                                                                     units by Apr 2013
    Krishnapatnam RPL                    Andhra Pradesh Acquisition of three Indonesian             RPL in talks with Doosan Heavy September 2013—
                                                         coal mines                                  Industries & Construction Co., October 2015
                                                                                                    Toshiba Corp., and L&T
    Tilaiya                        RPL   Jharkhand          Kirandhari B and C blocks of            Reliance Infrastructure Limited 2015
                                                             North Karanpura Coalfields
    Source: India Infrastructure

    A variety of initiatives are in the works to               in most of the states and the pace of                 The national Power Grid Corp. of
boost additional capacity from public and                      restructuring is slow largely because there       India (POWERGRID) has always been a
private players, including UMPPs, MPPs,                        is no transparency on transmission capacity       wires company and is unaffected by the
and group captive generation. Despite                          and because of restrictive conditions of          separation of the trading and transmission
these ambitious targets, power demand                          cross-subsidy surcharge. In fact, the only        sectors. But at the state level, vertically
will likely outstrip supply well into the XII                  open-access activity is by captive generators     integrated state electricity boards and
Plan period (Fig 3-2).                                         to transmit power to their load center. Most      transmission companies (which also
    In January 2010, KPMG released a                           of the power in the country continues to          traded under the single-buyer model in
report that offers insightful perspectives                     be procured through long-term power-              operation) in restructured states had to
on the future of the power generation,                         purchase agreements (PPAs).                       further separate the wires business from
entitled Power Sector in India: White                              Since January 2004, the CERC has              the trading business. Implementation of
Paper on Implementation Challenges                             granted 43 trading licenses, of which the         the mandated separation differs among
and Opportunities. With such large-scale                       Power Trading Corporation (PTC ) has the          the states.
development taking place in the power                          largest share. PTC is the designated trader           Andhra Pradesh and Karnataka chose
sector and the associated challenges, the                      for international electricity transactions,       to allocate the long-term PPAs to the
importance of comprehensive project                            particularly from Bhutan and Nepal.
management organization is paramount                           Capacities of MPPs, UMPPs, and captive                  Fig 3-4. Fuel Breakdown
to ensure that projects are completed in                       plants are expected to increase the share
a thorough and timely manner.                                  of power traded in the country either
                                                                                                                        of Thermal Generation
                                                               through bilateral, short-term trades or the               Diesel
                                                                                                                         1%
Power trading                                                  power exchanges.
                                                                   Traders can use either of two power
The Electricity Act 2003 laid the legal                        exchanges, the Indian Energy Exchange
foundation for the development of a                            (IEX) or the Power Exchange India Ltd.
national power market by mandating the                         (PXIL). They were initially given permission                  Gas                Coal
                                                                                                                             17%                82%
unbundling of the wires business from                          for day-ahead trading, but the CERC is
electricity trading and permitting open                        considering whether to allow longer-term
access on transmission and distribution                        contracts, including week-ahead, month-
networks.                                                      ahead, and year-ahead as well as seasonal
   However, a single-buyer model prevails                      contracts.                                                             Source: CEA


              800
                     Fig 3-3. Electricity                                                 Fig 3-5. Electricity Generation Mix, 2005-2030
              700    Generation                       Renewables
                                                                                          1200
                                                                                                          Coal
                                                                                                                             Source: IEA, World Energy Outlook (2007)
                     Growth by Type,
                                                                                                          Oil
              600    1985-2008                         Nuclear                            1000
                     Source: EIA
                                                                                                          Gas
                                                                                                          Nuclear
                                                                                              800
              500
                                                                ctric                                     Hydro
                                                            ele                                           Biomass
                                                         dro
Billion KWh




              400                                      Hy                                     600
                                                                                                          Other renewables
                                                                                        TWh




              300                                                                             400

                                                     Conventional Thermal
              200                                                                             200

              100                                                                               0

                0                                                                         –200
                    1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008                            2005-2015                         2015-2030

                                                                                  12
                                                                                             2011 India Energy
distribution companies of their states. Orissa    3-1 outlines four UMPPs that have already        North Eastern Electric Power Corporation
retained Gridco as a trading company and          been awarded.                                    Ltd. (NEEPCO) estimates of potential
formed a separate transmission company.               One 660-MW unit at Sasan and two             hydropower in the region at about
Still other states, like Gujarat, entrusted       800-MW units at Mundra each are expected         60,000 MW. Because of the stagnation in
the holding company in the state with             to be commissioned in the current Eleventh       hydro development, NEEPCO advocates
the responsibility of power purchase and          Five-Year Plan. The status of the other          a uniform power policy for the region to
trading.                                          UMPPs is as follows:                             exploit its power potential.
     Domestic customers make up about             n UMPP at Sarguja District, Chhattisgarh:
75% of total customers in India, but                  All the pre-Request for Qualification        Natural gas
they consume less than 65% of the                     (RfQ) activities have been
power. Industrial customers account for               completed.                                   Natural gas fuels about 10% of the
more than 35% of total electricity sales          n UMPP at Sundergarh District, Orissa:           total installed generation capacity. The
despite substantial captive generation,               Most of the requisites for issuing           XI Plan calls for 7,313 MW of gas-based
which is conservatively estimated at                  the RfQ are in place except the              capacity addition, of which 2,984 MW was
about 25,000 MW.                                      Section 4 notification regarding land        commissioned by the end of June 2009.
Generation                                            acqusition.                                  The capacity addition for the XII Plan will
                                                  n UMPP in Tamil Nadu: Site has been              depend on the availability of gas, which is
The Indian power generation market is the             finalized at Cheyyur along with              also used for fertilizer and transportation.
fourth-largest in Asia and the sixth-largest in       the captive port, which is under             In recent years the shortage of gas led to
the world. Coal fuels about 55% of India’s            finalization.                                substantial loss of generation and stranded
power generation, and if current projections      n UMPP in Andhra Pradesh (second one):           gas-based capacity.
are accurate, that proportion will grow               Site has been identified at Nayunipalli,         The natural gas now being produced
substantially in the next 20 years. To this           Prakasam District, and finalized by          in India’s Krishna-Godavari Basin (KG
point, India has met its burgeoning demand            CEA/PFC in consultation with the state       Basin) is expected to boost gas-based
for electricity primarily with the development        government.                                  generation, particularly the plants that
of conventional thermal power generation              The requisite inputs regarding land          have stranded capacity because of the
with coal representing the lion’s share of        availability and water linkage are being         previous nonavailability of gas. But under
generating fuel (Fig 3-3, 3-4).                   examined for the UMPPs to be located in          the government’s gas-allocation policy,
    The central and state governments             Maharashtra, the second UMPP in Gujarat,         new power projects would get the lowest
control 83% of India’s generation capacity        and two additional UMPPs in Orissa.              priority. Thus, planners are being cautious
of 153,694 MW; the National Thermal                                                                about increasing the capacities of gas-
Power Corporation Ltd. (NTPC), owned              Hydropower                                       based generation. All the UMPPs are fueled
by the central government, has almost                                                              by coal.
20% of the country’s capacity, and the            Hydropower’s share of the country’s                  Gas availability improved in 2009-10
private sector accounts for only 17%. But         generation capacity is expected to remain        with allocation of 18 million standard
the figures for total generation capacity         around 25% in the long run. Even if the          cubic meters per day (MMSCMD) to
exclude self- or captive generation, which        potential of 150,000 MW is fully exploited       existing power plants from Reliance
is estimated to be 19,500 MW. The per             by 2030-31, the share of hydro would in          Industries production in the KG Basin.
capita consumption was 704.2 kWh in               fact be less than 25%. However, the XI           But the need to reduce the power sector’s
2007-08 against the world average of              Plan has seen slippages of 5,200 MW of           CO2 emissions and to compensate for
2595.7 kWh.                                       hydro projects, including 1,100 MW by            threatened coal shortages is making
    Energy availability is 689 TWh but the        NTPC and 2,000 MW by NHPC. Land-                 construction of gas-based capacity more
requirement is 774 TWh, so shortages are          acquisition, resettlement and rehabilitation     urgent.
chronic. India’s peak deficit is 12.1%, and its   issues have caused significant delays in             Plans for the XII Plan call for a target
energy deficit 9.4%. A July 2009 pan-Indian       hydro projects.                                  of 12,000 MW of gas-based capacity,
study commissioned by Wärtsilä India,                 The northeastern region holds the            2,000 MW of combined heating and
entitled The Real Cost of Power, estimates        greatest potential for hydropower. The           power units (CHP) at large hospitals, malls,
that Indians spend about $6.2 billion every
year to fuel and maintain power back-up
equipment to secure themselves against                        NTPC
frequent outages.
                                                       Adani Power
    The XI Plan (2007-2012) aims to
address this problem by adding 78,700                         Lanco
MW of generation. Of that, 76% is                        Tata Power
expected to be coal-based and 20% from                                                    Fig 3-6. Capacity Commissioning
hydroelectric sources. India’s increasing                      JSW                        in XI Plan, by Company
dependence on coal generation to                             Sterlite
meet electricity needs will continue well
                                                              NHPC
into the future, with some projections
increasing to over 70% of electricity                Reliance Power
generation by 2030 (Fig 3-5).                                Torrent
    Nine UMPPs of 4,000 MW each have
been identified for development under the         Jaiprakash Power
international competitive bidding route.                        GVK
The Ministry of Power defines a UMPP as
a coal-fueled, supercritical power plant                      CESC                                                                 Source: CEA

of about 4,000 MW each involving an                                     0       3000             6000         9000         12000        15000
investment of about $3.5 billion. Table                                                                 MW

                                                                        13
                                                                                                                  venture with NPCIL to enter the
 Table 3-2. Nuclear Power Generation by Central Sector during 2008-09                                             nuclear sector (Table 3-2). Several
                Monitored                                Achievement Generation                                   private players have also shown
 Power           Capacity Generation Actual   Generation in 2007-08     in 2007-08                  Plant Load
 Station          (MW)      Target Generation in 2007-08 (% of Target) (% of Target)                Factor (%)    interest in the sector. Mumbai-
                                                                                                                  based Larsen and Toubro, for
 Kaiga           660          3,964          2,688       2,495            68            108             NA        example, have entered into
 Kakrapara       440          1,013          1,213       2,036           120             60             31        agreements with international
 MAPP            440          2,026          1,518       1,752            75             87             39        companies like Westinghouse,
                                                                                                                  Atomic Energy of Canada Ltd.,
 NAPS            440          1,013            740         674            73            110             19
                                                                                                                  and AtomStroyExport for nuclear
 RAPS            740          3,731          2,255       2,480            60             91             35        equipment and other related
 Tarapur       1,400          7,253          6,298       7,339            87             86             51        services. But no foreign direct
 Total Nuclear 4,120         19,000         14,713      16,777            77             88             41        investment in nuclear power
                                                                                                                  plants is permitted.
 Source: Central Electricity Authority


 Table 3-3.
 Renewable
 Power Purchase
 Obligations (RPPO)
 Fixed by SERCs in
 Different States
 State           Annual RPPO
 Andhra Pradesh          5%
 Gujarat                 2%
 Haryana             3-10%
 Karnataka        Min 10%
 Kerala                  5%
 Madhya Pradesh        10%
 Maharashtra             3%
                    (annual
                increase of
                 1% point)
 Orissa            450 MU
 Rajasthan             7.5%
 Tamil Nadu            10%




                                                                                                                                                        Suzlon
 Uttar Pradesh         7.5%
 West Bengal          3.8%               Suzlon in Rajahstan. India’s largest manufacturer of wind turbines received an order from Hindustan
                                         Petroleum Corporation Limited (HPCL) for a 25.5 MW wind turbine project with 17 units of Suzlon’s S82 1.5
 Source: http://mnes.nic.
 in/press-releases/press-                MW wind turbines. When the project is commissioned in Q3 FY 2010-11, HPCL will have a wind turbine
 release-28042008-2.pdf                  portfolio exceeding 50 MW.
                                                                                                         Table 3-4. Wind Power
IT parks, and commercial buildings and
                                                                                                         Installed Capacity In India
2,000 MW more through reciprocating
                                                     Nuclear                                             by State (MW)
engines located near large cities where              The signing of the Indo-U.S. nuclear deal in                           Gross      Installed
                                                                                                         State             Potential   Capacity
gas pipelines are available for peaking              October 2006, following a waiver from the
and emergency generation. The gas                    Nuclear Suppliers Group, has opened up              Andhra Pradesh 8,968             123
requirement for this capacity is estimated           opportunities for India in the field of civilian    Gujarat        10,645          1,567
at 50 MMSCMD.                                        nuclear trade. The Indian nuclear market
                                                                                                         Karnataka      11,531          1,327
                                                     is estimated to be worth $100 billion, and
                                                     planners hope to build 40,000 MW of nuclear         Kerala          1,171             27
Key Electric Power                                   capacity by 2020. The GoI wants the share           Madhya Pradesh 1,019             213
Producers                                            of nuclear in the overall fuel mix to increase      Maharashtra     4,584          1,939
The XI Plan has seen a remarkable                    from around 3% to 25% by 2050.
turnaround for private power producers                   The Nuclear Power Corporation of                Orissa            255              —
(Fig 3-6). Of the planned capacity addition          India Ltd. (NPCIL) is the country’s only            Rajasthan       4,858            738
of 26,000 MW, Adani Power is likely to add           nuclear generator. It has set itself a target       Tamil Nadu      5,530          4,305
6,600 MW, followed by Lanco Infratech                of increasing its installed capacity from the
(3,200 MW), Tata Power (2,900 MW) and                current 4,120 MW to 20,000 in the next five         West Bengal                        1
JSW Energy (2,900 MW).                               years. NPCIL has entered into agreements            Others                             3
    This growth in private power has been            with various international companies to             Total          48,561         10,242
attributed to better project management.             import fuel and equipment.
                                                                                                         Source: Indian Wind Energy Association
The capacity addition mix is slowly                      The leading thermal generator in the            2009 report (as of 3/31/09)
changing in favor of the private sector.             country, the state-owned NTPC, is in joint

                                                                          14
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Renewables                                              The Electricity Act 2003, the policies         with CERC will have the option either to
                                                     framed under the Act, and the National            sell power at a preferential tariff set by
India is promoting renewable energy to               Action Plan of Climate Change (NAPCC)             their SERC or to sell the power and its
augment the total power supply and to                together provide a roadmap for increasing         associated environmental benefits in the
meet rural needs either by augmenting grid           the share of renewables in the total              form of renewable-energy certificates. The
supply or by off-grid supply. Its contribution       generation mix.                                   certificates can be sold in CERC-approved
to the total electricity matrix is only about           However, renewable-energy resources are        exchanges to entities needing them to
8% currently, but it is making the                   not evenly spread across the country and the      meet their RPPO, thus creating a national
case for renewable energy as                             high cost of RE generation discourages        market for such generators to recover
a necessary component of                                  local distribution companies from            their costs.
sustainable development. Over                                                                              As of March 31, 2010, 16,817 MW
15% of the incremental capacity                                                                        of grid-connected renewable power
addition in the current XI Plan is                  Fig 3-7. Regional Load                             was in place, according to the MNRE.
expected to be from renewable                       Despatch Centres                                   Of that, 11,807 MW was from wind
sources.                                                                                               energy. Small hydropower, up to 25
     The primary vehicles for             NRLDC                                                        MW, supplied 2,735 MW, and bagasse-
development, RPPOs, are                                                    NERLDC                      fueled cogeneration 1,334 MW. Just
regulatory mechanisms                                                                                  10.28 MW of solar energy generation
designed to increase                                                                                   capacity was installed. Off-grid and
t h e p ro p o r t i o n o f                                 ERLDC                                     distributed renewable-energy generation
renewables in the                                                                                      supplied an additional 404.56 MW
power market, where                          WRLDC                                                     electricity equivalent, boosting the total
                                                                     Source: Powergrid
f o s s i l e n e rg y n o w                                                                           to 17,221.86 MW.
dominates. An RPPO                                                                                         In terms of installed capacity of wind-
specifies the minimum                                               purchasing more                    based generation, India ranks 5th in the
quantity of renewable energy                                     than their obligatory                 world. Indian wind-turbine manufacturing
required in each state. Under the                              amount of renewable                     giant Suzlon is the largest in Asia in terms
Electricity Act 2003, the National             SRLDC         generation. To address the                of market share and has installed more
Power Policy 2005, and the Tariff                        imbalances and encourage RE-                  than half of India’s capacity. Great potential
Policy 2006, each SERC must set                          capacity addition in states with              exists to develop wind energy and can be
a distribution licensee’s obligation                     untapped RE potential, the CERC               sustained for decades to come. Table 3-4
for power purchases from renewable                       promulgated a regulation creating             offers a glimpse at potential and installed
energy resources. Regulators in several                 renewable-energy certificates in               capacity by state.
states have issued orders for RPPOs                    January 2010.                                       In December 2009, the GoI unveiled
varying from 1 % to 10% (Table 3-3).                      RE generators who register                                        Continued on page18

                                                                            15
Sponsored Statement


Making waste gas a business opportunity
Background                                                                                           The new gas turbine features the
Gas turbine technology has enabled                                                               following:
natural-gas- and fuel-oil-fired combined-                                                        n New compressor vane-carrier casings
cycle plants to achieve efficiencies up to                                                           with minor changes on compressor
56-57%. Only in the last 15 years has a                                                              vanes.
different requirement become important to                                                        n Compressor bearing casing changed in
the gas turbine market. A new business area                                                          the interface towards the compressor
is quickly growing requiring gas turbines                                                            vane-carrier casing.
to be able to offer good performance also                                                        n Rotor unchanged, except for the
by using low-Btu fuels.                                                                              removal of the first stage, but with the
    This new requirement is strictly related                                                         addition of two final stages with the
to the commercial success of IGCC                                                                    same total length.
technology, which allows production of                                                           n No modification of hot components-
                                                 Fig 1: New AE94.2K2 compressor
electric power from low-quality/low-cost                                                             -that is, the turbine and combustors
fuels (as refinery residual oils or low rank                                                         remain unchanged.
coals) with an efficiency higher than boiler-                                                    n External casings are unchanged.
based power plants.                                                                              n Burners with flow channels for gas
    Furthermore, gasification technology                                                             of low heating value are designed in
is coupled to very effective gas cleaning                                                            relation to Wobbe index and optimized
technologies which, in addition to the good                                                          in relation to the fuel used.
performance of the gas turbine concerning                                                        n Plant layout and foundations remain
the emissions problem, overcomes all the                                                             unchanged.
environmental problems related to the
combustion of such fuels.                                                                        Compressor redesign
    This requirement is also met when                                                            Depending on the LHV of low-Btu gas, and
dealing with recovery gases from steel-          Fig 2: Fuel feed system                         therefore the fuel flow rate input, a suitable
mill processes that also can be burned in                                                        version of the V94.2 can be adopted in
a gas turbine instead of a traditional boiler                                                    order to optimize fuel consumption and
with higher performance and efficiency.          be gasified or the available by-product         energy production.
All the fuels coming from these processes        gas, the chosen gasification technology,            As mentioned above, the key factor to
are mainly constituted by a mixture of           and the available added diluents (nitrogen      cover the lower fuel range is compressor
carbon monoxide, hydrogen, methane,              and/or steam).                                  redesign to reduce air flow capability. Main
and nitrogen.                                        Looking at the table, note that the         changes have been performed to the
    An example of the fuel opportunities         typical low-Btu fuel range is covered by        compressor stages, by removing the first
mentioned above is given by the                  Ansaldo Energia technology. In order to         compressor stage and by redesigning the
experiences in this business area gained by      maintain the leadership position in this        compressor inlet duct to take into account
Ansaldo Energia (Table 1). All plants listed     niche market, a continuous development          the reduced IGV cross-sectional area.
are equipped with AE94.2K gas turbines           process has been implemented to allow               The compressor inlet duct performance
manufactured and directly supplied by            the existing fleet to burn fuel with a lower    also in the new design condition has been
Ansaldo Energia.                                 heating value (LHV) below 5.0 MJ/kg.            checked by accurate 3D study. In addition
    All the AE94.2K machines are equipped            In this fuel range, the standard AE94.2K    to the modification to the compressor
with silo-type combustors and with a             cannot be profitably employed due to            first stage, to ensure proper operation
proper low-Btu burner to accommodate             the excessive partialization which would        in all working conditions, two additional
fuel features and plant requirements. Thus,      be necessary to operate on compressor           compression stages were also added at
for each application it has been necessary       inlet guide vanes. To maintain the proven       the delivery side, in order to restore the
to introduce some optimization of the            design of the K series, Ansaldo Energia         previous surge margins.
burner design.                                   has released the AE94.2K2, featuring                This simple design concept allowed to
    Table 2 provides an overview of the fuel     reduced air compressor capability. This         limit the number of components involved
characteristics in order to highlight the wide   model accommodates the much more                in the change as much as possible and
range of compositions of these mixtures,         stringent requirements of users of steel-mill   to use components of proven geometry
depending on the different feedstock to          by-product fuel.                                (the last stages added are identical to the

Table 1: Ansaldo Energia’s low-Btu fuel project                Table 2: Fuel properties                                 Table 3: Typical low-Btu




                                                                    16
                                                                                                              Sponsored Statement


in the power generation industry
                                                        www.ansaldoenergia.com

     previous ones). Due to this solution, the        to finalize the proper burner design. As         technology for a wide fuel flexibility in
     external machine layout is unchanged             already mentioned, the fuel system for           power generation.
     (Fig 1).                                         the low-Btu engine has to supply much                This model will benefit by all the
                                                      higher flow rates to the burners than for        experience gained in low-Btu fuel market
     Combustion system                                the standard engine.                             by Ansaldo Energia with the V94.2K. The
     The two combustion chambers are arranged             The fuel system (Fig 2) consists of large-   model was officially released in 2008.
     vertically on either side of the turbine and     diameter pipe and control and stop valves,       Ansaldo Energia is in negotiation with a
     connected to lateral flanges on the turbine      and must include additional mixing in order      few customers for a new project relevant
     casing. This design allows concentric            to get the final blend of recovery gas,          to the utilization of different blends of blast
     gas and air paths form the compressor            natural gas, and, occasionally, steam. The       furnace gas, coke oven gas, and oxygen.
     to the combustion chambers and from              presence of toxic and explosive components
     the combustion chambers to the turbine,          demands that the fuel system meet very high      Ansaldo Thomassen Gulf:
     involving relatively low flow velocities and     safety standards. Thus all flanges and joints    A new high-tech repair
     thus minimum pressure drop.                      between the burners and the connection
         The combustion chamber is provided           point to the skids are welded.                   center in the Middle East
     with a refractory lining. Each combustion            According to the gas turbine working         With a major new investment, Ansaldo
     chamber has eight separate burners               conditions, engine loading is performed          Energia has significantly increased its
     equipped for burning low-Btu fuel as main        by using the back-up fuel, mainly for safety     service sector dedicated to all customers
     fuel and natural gas as a backup fuel. The       reasons. Thus, a procedure for switch            in the Middle East, one of the fastest
     burner design is based on Ansaldo Energia’s      over from back-up fuel to the main fuel          developing areas in the world. Through
     previous experience on other low-Btu fuel        is accomplished under full automatic             its subsidiary Ansaldo Thomassen Gulf,
     projects (Isab Energy Priolo, Elettra Servola,   control.                                         Ansaldo Energia has built a futuristic new
     Enipower), redesigned, and tested in two             The procedure is performed so that           operations facility which was officially
     different test campaigns at Ansaldo Caldaie      before the low-Btu fuel enters the combustor     opened at the end of April 2010. The
     Combustion Centre and ENEL laboratories          at the change over, its characteristics are      inauguration ceremony was organized
     in Italy in order to take into account the       monitored and analyzed online. The fuel is       with the backing of sheik Hamad bin
     different boundary conditions which occur        flared until the its properties and the design   Zayed Al Nayan. Guests included Ansaldo
     for very low-Btu gases.                          specifications match. Once that happens,         Energia CEO Giuseppe Zampini, Ansaldo
         Table 3 presents several compositions        the changeover procedure can start.              Thomassen Gulf CEO Fausto Nepote,
     of low-Btu gases as blends of blast furnace          Finally, a purging procedure before          ZonesCorp CEO Mohammed Hassan
     gas, coke oven gas, and oxygen. All are          any syngas partial or full-load working          Al Qamzi, and Paolo Dionisi, the Italian
     suitable for use in the AE94.2K2.                condition must be done with nitrogen or          ambassador to the Arab Emirates.
         For some blends, natural-gas integration     steam in order to avoid possible risks of            The new facility, which has 3,200 sq m
     is necessary to reach a suitable LHV.            explosion due to the reactivity of the fuel      of workshop floor and 880 sq m of offices,
     Basically the engine is expected to be           when exposed to mixing with air.                 will play a fundamental role in satisfying
     ignited and loaded at 40% of base load                                                            the needs of the local market in terms of
     fueled by natural gas; after the change          Performance                                      quality and time.
     over to syngas, the engine can run on            Table 4 shows the performance that                   Ansaldo Thomassen Gulf draws on the
     syngas with the natural-gas integration          can be expected on V94.2 models when             latest technology and the best human
     necessary to get to base load.                   operating on singular fuels, in particular       resources to provide an international
         The critical point for the burner design     the different types of low-Btu gases.            centre of excellence in gas turbine repair
     process is facing different fuel compositions                                                     and maintenance, while eliminating high
     as the gas turbine is loaded. Therefore          Conclusions                                      costs of international transport for its
     a detailed analysis has been performed           The growing demand to supply gas                 customers. This represents a decisive step
     taking into account the different cases          turbines with very-low-Btu gases derived         towards Ansaldo Thomassen Gulf’s goal of
     shown in the mentioned table.                    from steel-mill processes has driven the         becoming a point of reference in the service
         This means that for each kind of fuel,       introduction of Ansaldo Energia’s AE94.2K2,      and repair market for all technologies of
     optimization of the standard low-Btu burner      an engine developed for this specific niche      turbine, offering an innovative service for
     must be performed, including a numerical         market based on the relevant experience          the first time in this area, with a structure
     analysis (CFD with chemical routines) and        achieved on AE94.2 (Table 5). Thus the           that is rapid, professional, highly efficient,
     a experimental test campaign in order            AE94.2 has proved to be the leading              and easily accessible.

fuel composition             Table 4: AE94.2 family performance                       Table 5: AE94.2 family features




                                                                          17
                                                                                              Continued from page15
Central Power Research Institute (CPRI)                                                       plans to achieve 20,000 MW of installed
                                                                                              solar power capacity by 2022 under the
CPRI was established in Bangalore by the Government of India to serve as a national           Jawarharlal Nehru National Solar Mission.
laboratory for applied research in electric power engineering while functioning as an         The plan aims to electrify thousands of
independent national testing and certification authority for electrical equipment and         villages, create jobs, help combat climate
components. CPRI also offers expert consultancy services in the areas of transmission         change and also achieve grid parity pricing
and distribution, power quality, energy auditing, conductor vibration, power system           by 2022. The target is set to be achieved
instrumentation, transformer oil reclamation, power system application, high and              in three phases:
extra-high voltage, and related fields.                                                       n Phase I: A three-year phase from 2009-
http://www.cpri.in/                                                                               2012 to primarily focus on solar heating
                                                                                                  systems, which use proven technology
                                                                                                  and are commercially viable. The capacity
National Hydroelectric Power Corporation                                                          additions are mainly going to be off-grid
(NHPC)                                                                                            in the rural areas that do not have grid
                                                                                                  connections at present. The target is to
NHPC is wholly owned by the Government of India. It plans, promotes, and organizes                add 1,000 MW of off-grid capacity by
integrated development of hydroelectric power in the country. With its present                    the end of Phase I.
capabilities, NHPC can undertake all activities of hydroelectric projects, from conception    n Phase II: Four years from 2013-2017
to commissioning. The company has executed 13 projects with an installed capacity of              to use the experience gained in Phase
5,175 MW on ownership basis. It has also executed five projects on turnkey basis, with            I to ramp up off-grid capacity as well as
an installed capacity of 89.35 MW. Two of these projects have been commissioned in                grid-connected supply. The target is to
Nepal and Bhutan. NHPC also exploits other sources of renewable energy, including                 add 3,000 MW of renewable capacity
geothermal, tidal, and wind.                                                                      to the grid by 2017. The MNRE is
http://www.nhpcindia.com/index.aspx                                                               planning to make solar water heaters
                                                                                                  mandatory through building bylaws
                                                                                                  and a new building code, effective
National Thermal Power Corporation Ltd.                                                           mechanisms for certification and rating
(NTPC)                                                                                            of manufacturers, measurement and
                                                                                                  promotion of these devices, and
A wholly-owned company of the Government of India, NTPC is the largest thermal-power              support for upgrading of technologies
generating company in India. NTPC’s core business is concerned with engineering,                  and manufacturing capacities through
construction, and operation of power-generating plants. It also provides consultancy              soft loans.
services to power utilities in India and abroad. NTPC’s installed capacity is 29,394 MW,              The RPPOs, which would include
including 15 coal-based power stations (23,395 MW), seven gas-based power stations                a specific solar component for power
(3,955 MW), and four joint-venture power stations (1,794 MW) among others.                        utilities, would be a key component.
https://www.ntpc.co.in/                                                                           The obligation for this is expected to
                                                                                                  gradually increase, while the tariff fixed
                                                                                                  for solar-power purchase is expected to
North Eastern Electric Power Corporation                                                          decline over time.
Ltd. (NEEPCO)                                                                                 n Phase III: Five years from 2017-2022.
                                                                                                  The plan will also provide for the solar
NEEPCO was incorporated to develop the power generation capability of India’s North           lighting systems in 10,000 villages under
East, which possesses about 40% of the country’s hydroelectric potential as well as a         the on-going remote village electrification
high potential for power from natural gas and coal. The Central Electricity Authority         program and will also provide for setting
estimates this region’s hydropower potential at approximately 58,971 MW. The region           up solar power plants in Lakshadweep,
also has natural-gas reserves of about 152 billion cubic meters, which can generate           Andaman & Nicobar Islands and the
about 7,500 MW of power for 10 years. Its 865 million tonnes of coal reserves could           Ladakh regions. However, there is no
produce 240 MW power per day for 100 years. NEEPCO’s installed capacity of 1,130              clear program for funding the project,
MW includes both hydroelectric and thermal projects.                                          which would require incentives and/or
http://www.neepco.gov.in/                                                                     subsidies.

                                                                                              Combined heat and
Power Grid Corporation of India Ltd.                                                          power
(POWERGRID)                                                                                       The policy foundation for combined
One of the largest transmission utilities in the world, POWERGRID operates the regional       heat and power (CHP) centers around
and national electrical power grids. Its areas of operation include (1) the development       bagasse-based cogeneration largely in
of interstate transmission systems, including planning and design, construction,              the sugar industry and supported as a
quality assurance and inspection, and operations and maintenance; and (2) grid                renewable-energy source. But CHP is
management, including establishment of modern load dispatch centers, real-time grid           conceptually much larger; it encompasses
operation, scheduling and dispatch, and energy accounting, together with financial/           the idea of improving energy efficiency
commercial settlements. POWERGRID has also diversified into the areas of broadband            whether the primary fuel is renewable or
telecom services, sub-transmission, distribution, and rural electrification. Each state has   not. Industrial CHP has been of interest in
its transmission network; some of the larger ones are Andhra Pradesh Transco, Karnataka       India for over a decade, both to augment
Power Transmission Corporation Ltd., and MAHA Transco.                                        industrial energy supplies in the face of
http://www.powergridindia.com/PGCIL_NEW/home.aspx                                             endemic shortages and to use fuels of
                                                                                              all kinds more effectively. The additional

                                                                   18
                                                                                                2011 India Energy
benefits of carbon mitigation also are being
gradually recognized.
    Estimates of CHP in India have been
scanty and based on differing definitions
        .
of CHP The GoI estimate is restricted to
bagasse-based cogeneration, whose
current installed capacity of 719.83 MW
is found predominantly in the states of
Andhra Pradesh, Karnataka, Maharashtra,
Tamil Nadu, and Uttar Pradesh.
    A study by The Energy and Resources
Institute (TERI), covering 300 industrial
units across 10 different sectors, estimates
India’s CHP potential at 7,574 MW. More
than two-thirds of that, 5,131 MW, is in the
sugar industry alone. The CHP estimates
are based on the internal heat-to-power
ratios, which would meet the plant’s
energy requirements, and on the existing
production capacities of the various
industry categories. The estimates do not
cover the power-maximization options,




                                                                                                                                               Powergrid
which would significantly increase the
CHP potential.
    CHP potential is expected to grow with
the country’s expanding industrial base.        Powergrid’s Sipat-Seoni line. India’s first of many planned 765-kV UHV lines runs over
The IEA estimates that CHP potential will       350 km, connecting the states of Chhattisgarh and Madhya Pradesh, transmits 1500 MVA
reach 27,800 MW in 2015 and 84,800              power from generation sources to load centres with greatly reduced transmission losses.
MW in 2030.
                                                capacity, adding that the planned increase        coordinate, supervise and control the
Future prospects                                in generation in the coming decade will           interstate transmission network. As of July
                                                require corresponding investments in              2009, POWERGRID owned and operated
India has abundant renewable resources in       transmission.                                     about 71,500 circuit kilometers (ckm) of
solar, hydro, biomass, and wind potential,         POWERGRID, owned by the government                                             ,      ,
                                                                                                  transmission lines at 800/765 kV 400 kV 220
and the legal, policy, and regulatory           of India, is the Central Transmission             kV, 132 kV AC, and ±500 kV high-voltage
environment is becoming more hospitable         Utility (CTU) with the mandate to plan,           DC, plus 122 substations with transformer
to the increase of renewables in the energy
sector. Along with SERC regulations on the
RPPOs, the renewable energy certificates,        Table 3-5. Transmission Sector
and attractive rates for renewable power
                                                                                                Central       State    Inter-state
offered by CERC have moved renewables            Transmission Lines (ckm)                       Sector       Sector     Network        Total
from the fringes of the energy basket to
the mainstream.                                  765 kV                                          2,863          409           -        3,272
    The MNRE has set aggressive targets          400 kV                                         61,491       27,970      3,243        92,704
for renewable energy, with projections           220 kV                                         10,119      115,172        151       125,442
approaching 25,000 MW by 2012. This
                                                 ±500 kV HVDC Lines                              5,848        1,504          —         7,352
would require an estimated investment
of about $257 million. The MNRE has              Sub-Stations (MVA)
also made provision for subsidies of up to       765 kV                              4,500                        —            —       4,500
$650 million.                                    400 kV                             57,965                   56,072            —     114,037
    The National Solar Mission, established
under the NAPCC, has set a goal of               220 kV                              4,776                  178,609          800     184,185
generating at least 10% of India’s power         ±500 kV BTB HVDC Converter Terminal 7,000                    1,700            —       8,700
from solar energy. It envisages increasing       Source: CEA (as of Oct. 31, 2009)
the production of solar photovoltaic panels
to 1,000 MW per year from the current 235
MW per year and generating 1,000 MW              Table 3-6. Distribution Line Length (km)
of grid-connected solar power, up from
the current 10 MW, by 2017.                      Region                33kV          22/20 kV    15/11 kV    6.6 kV   3.3/2.2 kV Up to 500 v
                                                 Northern             71,381          5,579      598,408         —      46           917,056
Electricity delivery                             Western              74,962         29,830      612,157     1,852       —         1,202,137
                                                 Southern             50,465         37,112      541,299         —      19         1,671,796
The Ministry of Power’s ambitious goal of
“Power for All by 2012” looks truly daunting     Eastern              32,668             50      223,362     4,452      62         3,616,731
in light of the power sector’s current state.    North Eastern         8,486              —       67,332         —       —            85,795
The KPMG white paper cites the MoP’s             Total (All India)   237,962         72,571 2,042,558        6,304    127          7,493,515
own statistics that installed transmission
                                                 Source: CEA General Review 2008 (as on 31 March, 2007)
capacity is only 13% of installed generation

                                                                     19
capacity of about 81,200 MVA. This grid is          Each state has a separate intrastate            the transmission infrastructure in the
maintained at an availability of 99%, and        transmission grid that is connected to the         country.
about 45% of the total power generated in        interstate transmission network owned                 Fig 3-7 illustrates the five interconnected
the country is wheeled through it.               by POWERGRID. Table 3-5 provides                   electrical regions across the country.


                                                                                                     Satluj Jal Vidyut Nigam Ltd. (SJVN)
 More electricity sector entities                                                                    This organization was incorporated as a joint
                                                                                                     venture between the Government of India
 Power trading and ex-                            capacity of 500 MW in Ahmedabad. Another
                                                                                                     and the Government of Himachal Pradesh
 change                                           1,145.75-MW combined-cycle power plant
                                                                                                     to plan, promote, organize and execute
                                                  is under construction. Torrent Power is also
 Power Trading Corporation of India                                                                  hydroelectric power projects in the Satluj
                                                  engaged in the transmission and distribution
 Ltd. (PTC)                                                                                          River Basin in Himachal Pradesh.
                                                  of electricity.
 PTC India was incorporated in 1999                                                                  http://sjvn.nic.in
                                                  http://www.torrentpower.com
 to develop a full-fledged, efficient, and                                                           Narmada Hydroelectric Development
 competitive power market, attract private        Calcutta Electric Supply Corporation
                                                                                                     Corporation Ltd. (NHDC)
 investment in the Indian power sector, and       Ltd. (CESC)
                                                                                                     A joint venture of the NHPC and the
 encourage power trade with neighboring           CESC has a total generation capacity of 975
                                                                                                     Government of Madhya Pradesh, NHDC has
 countries.                                       MW at four thermal power stations in West
                                                                                                     been entrusted with the construction of Indira
 http://www.ptcindia.com                          Bengal. CESC also has a presence in the
                                                                                                     Sagar Project (1,000 MW) and Omkareshwar
                                                  fields of establishing transmission network
 Indian Energy Exchange (IEX)                                                                        Project (520 MW). It is the largest organization
                                                  and cable manufacturing, and provides
 IEX is a nationwide, automated, and online                                                          for hydropower development in the state of
                                                  consultancy services in the operation and
 electricity trading platform. It has been                                                           Madhya Pradesh.
                                                  maintenance of power plants.
 conceived to catalyze the modernization of                                                          http://www.nhdcindia.com
                                                  http://www.cescltd.com/cesc/menu.
 electricity trade in the country by ushering     html#
 in a transparent and neutral market through                                                         Nuclear sector entities
 a technology-enabled electronic trading          Jindal Power Ltd. (JPL)
                                                  JPL, a subsidiary of Jindal Steel and Power        Nuclear Power Corporation of India
 platform.                                                                                           Ltd. (NPCIL)
 http://www.iexindia.com                          Ltd., has a coal-based 1,000-MW thermal
                                                  power plant in Chhattisgarh and has signed         NPCIL has been set up to operate nuclear
 Power Exchange India Ltd. (PXIL)                 memoranda of understanding with the                power stations and implement nuclear power
 Operating since late October 2008, PXIL          governments of Jharkhand and Chhattisgarh          projects for the generation of electricity. Its
 is the exchange for electricity contracts        to increase power generation capacity.             17 nuclear power units have a combined
 on a day-ahead basis with voluntary              http://www.jindalpower.com                         capacity of 4,120 MW.
 participation. Since then, PXIL has received                                                        http://www.npcil.nic.in
 further approval from the Central Energy         Damodar Valley Corporation (DVC)
                                                  Apart from being involved in the general           Bharatiya Nabhikiya Vidyut Nigam
 Regulatory Commission to introduce longer-                                                          Ltd. (BHAVINI)
 tenure physical delivery products in the form    social and economic upliftment of the
                                                  Damodar Valley in northeastern India, DVC is       BHAVINI has been incorporated to
 of weekly and day-ahead contingency                                                                 construct and commission the first 500-
 products. PXIL is promoted by the National       engaged in the generation and transmission
                                                  of electricity in the area. It generates 144 MW    MW fast breeder reactor and to pursue
 Stock Exchange of India Ltd. (NSE), and the                                                         construction, commissioning, operation,
 National Commodity & Derivatives Exchange        of hydroelectric power and 2,652.5 MW of
                                                  thermal power. The DVC transmission system         and maintenance of subsequent FBRs for
 Ltd. (NCDEX).                                                                                       power generation.
 http://www.powerexindia.com                      is spread across Jharkhand, West Bengal,
                                                  and Orissa.                                        http://www.bhavini.nic.in/main.asp
 Power generation                                 http://www.dvcindia.org/index.htm                  Bhabha Atomic Research Centre
                                                  Bhakra Beas Management Board                       (BARC)
 Reliance Energy Ltd. (REL)                       (BBMB)                                             BARC is a multidisciplinary nuclear research
 REL generates 941 MW of electricity and has      BBMB administers, operates and maintains           centre having infrastructure for advanced
 several gas-, coal-, wind-, and hydro-based      irrigation and hydroelectric power projects        research and development, with expertise
 power generation projects at various stages      with 2,906 MW total capacity. It is also           covering the entire spectrum of nuclear
 of development, with an aggregate capacity       currently constructing three hydropower            science and engineering and related
 of over 13,510 MW. Reliance Energy is also       projects with an aggregate capacity of 19          areas.
 engaged in the transmission and distribution     MW.                                                http://www.barc.ernet.in
 of electricity.                                  http://bbmb.gov.in/english/index.asp
 http://www.rinfra.com                                                                               Indira Gandhi Centre for Atomic
                                                  Tehri Hydro Development Corporation                Research (IGCAR)
 The Tata Power Company Ltd.                      Ltd. (THDC)                                        IGCAR has been set up with the main
 Tata Power has an installed thermal,             THDC is a joint venture between the                objective of conducting broad-based
 hydroelectric and wind generation capacity       Government of India and the Government             multidisciplinary programs on scientific
 of more than 2,300 MW. Tata Power                of Uttar Pradesh to plan, promote and carry        research and advanced engineering, directed
 has a joint venture with the Power Grid          out integrated and efficient development of        towards the development of sodium-cooled
 Corporation of India for its 1,200-km Tala       hydro resources of Bhagirathi River and its        fast breeder reactor technology in India.
 Transmission Project.                            tributaries at Tehri, along with complementary     http://www.igcar.ernet.in
 http://www.tatapower.com                         downstream development for power                   Atomic Minerals Directorate for
 Torrent Power Ltd.                               generation and other services.                     Exploration and Research (AMD)
 Torrent Power has an installed generation        http://thdc.gov.in                                 AMD is entrusted with the survey of atomic

                                                                     20
                                                                                                    2011 India Energy
    These inter-regional connections              generation potential is greater in the             southern, northern, and western parts
 are very important to India as power             east and northeast. As new plants                  of the country. Future generation will
 supply and power demand are not                  are built, their power will need to                necessarily be concentrated where coal
 matched across the regions. Power-               flow to power-deficit states in the                resources are abundant in the states
                                                                                                     of Bihar, Jharkhand, West Bengal, and
                                                                                                     Chhattisgarh in the eastern region as
minerals in India, with exclusive rights to     RE manufacturing                                     well as the northeastern states where
explore for uranium and other minerals                                                               the hydropower potential exists.
required for the nuclear industry. It also      Suzlon                                                   A further strengthening of the national
conducts geological/geotechnical studies        Suzlon is a leading India-based wind-turbine         power grid is envisaged through high-
related to site selection for nuclear power     maker with over 14,000 people in 21                  capacity alternating-current extra-high-
plants and repositories for the disposal of     countries and operations across the Americas,        voltage lines, 765-kV AC lines, and high-
radioactive waste generated from nuclear        Asia, Australia and Europe. It has a fully           voltage direct-current lines. This phase
power plants.                                   integrated supply chain with manufacturing           should be implemented by 2012 when
http://www.amd.gov.in                                                                                inter-regional power transfer capacity
                                                facilities in three continents, sophisticated R&D
                                                                                                     will be enhanced to about 37,700 MW
                                                capabilities in Denmark, Germany, India and
Renewable-energy sector                                                                              by the end of the XI Plan, depending on
                                                The Netherlands and is the third-largest wind        the growth of the generation capacity.
Research and development
                                                turbine manufacturer in the world.                   But current inter-regional transfer capacity
Sardar Swaran Singh National Institute          http://www.suzlon.com                                is just 20,750 MW, according to the
of Renewable Energy (SSS-NIRE)                                                                            ,
                                                                                                     MoP making the goal an extraordinary
SSS-NIRE is an autonomous institution           Tata BP Solar India Ltd.                             challenge.
that serves as a technical focal point for      Tata BP Solar is a Joint Venture between                 Grid management is carried out using
the development of bio-energy, including        Tata Power Company and BP Solar, one of              Supervisory Control and Data Acquisition
biofuels and synthetic fuels.                   the largest solar companies in the world.            (SCADA) with the National Load Dispatch
http://mnre.gov.in/nire-rdd.htm                 Tata BP Solar has a fully integrated solar           Center (NLDC) at Delhi and five Regional
                                                manufacturing plant in Bangalore, which              Load Dispatch Centers. Each state has a
Alternate Hydro Energy Centre
                                                                                                     state load dispatch center (SLDC) which
(AHEC)                                          in April 2010 completed a project to add
                                                                                                     operates the grid.
AHEC is an academic center of the Indian        32 MW of photovoltaic-cell production to its
Institute of Technology, Roorkee, with the      existing 52-MW line. By early next year, the
mission to promote power generation             company plans to achieve 180 MW of cell
                                                                                                     Distribution
through the development of small                                                                     Electricity distribution is a state government
                                                capacity, and ultimately 300 MW by 2012.
hydropower projects in hilly as well as plain                                                        responsibility in India. State Electricity
areas. It also promotes development of          Tata BP Solar’s talent pool comprises over 600
                                                employees spread over four manufacturing             Boards (SEBs) were set up as vertically
decentralized integrated energy systems in                                                           integrated monopolies in each state after
conjunction with other renewable-energy         units and eight offices.
                                                                                                     Independence, but some private-sector
sources such as biomass, solar, and wind.       http://www.tatabpsolar.com                           companies continued to exist. The Bombay
http://ahec.org.in                                                                                   Suburban Electricity Supply Co. (BSES) in
Centre for Wind Energy Technology               Power distribution                                   Mumbai (taken over by Reliance Energy in
(C-WET)                                         Electricity distribution is in the public and        2003), Ahmedabad Electricity Company
C-WET is an autonomous research and             private sector. In the public sector, electricity    (AEC), and Surat Electricity Co. (SEC), taken
development institution working in the field    distribution is either an unbundled distribution     over by the Torrent Group in 1998, and
of wind energy. C-WET’s services include                                                             Calcutta Electricity Supply Company (CESC),
                                                business or part of the vertically integrated        which continues to be owned by the RPG
developing components and sub-systems           State Electricity Board.
for wind turbines, identifying resource-rich                                                         group.
regions in the country, testing complete        Bangalore Electricity Supply Company                     With power-sector reforms in the 1990s,
wind turbine generator systems according                                                             several states unbundled and restructured
                                                Ltd. (Bescom)
to international standards, preparing                                                                their electricity sectors and created two
                                                BESCOM has responsibility for distribution of        to five small distribution companies.
standards suitable for Indian conditions,       electricity in eight districts covering 41,092 sq
and collecting, collating, and analyzing                                                             Table 3-6 is a summary of the distribution
                                                km with a population of nearly 14 million and        infrastructure in the country.
the related information to serve as an
information center in the field of wind         a consumer base of 6,363,764. Its system                 High distribution-line losses are among
energy.                                         includes 112,745 distribution transformers,          the most vexing problems in the Indian
                                                62,941 circuit-km of high-tension lines, and         power sector. India’s aggregate technical
http://www.cwet.tn.nic.in
                                                140,067 circuit-km of low-tension lines.             and commercial losses average about 32%
Solar Energy Centre (SEC)                                                                            of electricity. The Restructured Accelerated
SEC acts as a national test and                 North Delhi Power Ltd. (NDPL)                        Power Development and Reform Program
standardization center for solar energy         NDPL is a joint venture between Tata Power           (R-APDRP) of the Ministry of Power aims
materials, components, and systems;             Company and the Government of the                    to reduce these losses to below 15%.
collaborates with other research institutions                                                        Many urban areas have shown a decline
                                                National Capital Territory of Delhi, with the
and industry on research projects; provides                                                          in losses, but the rural areas continue to
                                                majority stake being held by Tata Power. It          be mismanaged. Latest estimates indicate
advisory and consultancy services to the
industry and users; and evaluates new           distributes electricity to 1 million customers       that line losses average 27.2% and in some
technologies, products, and systems for         in north and northwest parts of Delhi with           states exceed 60%. Table 3-7 indicates
their adaptability to Indian conditions.        a peak load of around 1,180 MW.                      the distribution of line losses in India by
http://mnre.gov.in/sec/sec-objective.htm        http://www.ndpl.com                                  state.
                                                                                                         Losses average almost 30% in the

                                                                        21
                                                                                                       Grid operators
                                                                                                       The state transmission utilities, such as AP
                                                                                                       Transco, Delhi Transco, Karnataka Power
                                                                                                       Transmission Corporation Ltd., and the
                                                                                                       central transmission utility, POWERGRID,
                                                                                                       are responsible for the intrastate and
                                                                                                       interstate transmission networks.
                                                                                                           The SLDCs under the state transmission
                                                                                                       utilities and the RLDCs and NLDC under
                                                                                                       POWERGRID are responsible for grid
                                                                                                       management. In the emerging scenario,
                                                                                                       policy makers have suggested that grid
                                                                                                       operation functions need to be “ring
                                                                                                       fenced” if not hived into a separate entity.
                                                                                                       This is yet to happen.
                                                                                                           The NLDC is the apex body in the
                                                                                                       hierarchy of the national grid system. The
Powergrid




                                                                                                       launch of the NLDC in September 2009 has
                                                                                                       set the stage for synchronous operation of
       Smart Grid technology. The NRLDC instituted a pilot program in May 2010 to install four         the national grid on a real-time basis and for
       Phasor Measurement Units (PMUs) with GPS at substations near Delhi to assist grid operators     smooth power transfers across regions.
       with real-time data, visualization software for situational awareness, and data archiving for
       predictive analytics.
                                                                                                       Distribution operations
                                                                                                       India’s distribution network starts at
            Table 3-7. T&D Losses by State (2007-08)                                                   the 33-kV substation and ends at the
            0-15%        15-25%              25-35%         35-45%          45-55% Above 55%           customer’s meter, or doorstep in the case
                                                                                                       of unmetered rural domestic customers.
            Puduchery Himachal             Delhi             Uttarkhand       Bihar    Jammu &         Each state has its own distribution network,
                       Pradesh                                                           Kashmir
                                                                                                       and the old vertically integrated SEBs have
                      Punjab               Haryana           Madhya Pradesh            Arunachal       been unbundled into smaller distribution
                                                                                         Pradesh       companies in many states.
                        Chandigarh         Rajasthan         Orissa                    Manipur             In Delhi and Orissa, distribution
                        Goa                Uttar Pradesh     Sikkim                    Nagaland        companies have been privatized as joint
                                                                                                       ventures with entities owned by the state
                        Daman & Diu        Gujarat           Assam                                     government. There are also several private
                        Dadra &            Chhattishgarh     Meghalaya                                 distribution companies that have operated
                         Nagar Haveli                                                                  for several decades, as described above.
                        Andhra Pradesh     Maharsthra        Mizoram                                   Some states like Tamil Nadu and Punjab
                        Karnataka          Andaman           Tripura                                   continue to have a single distribution entity
                                            & Nicobar                                                  for the entire state.
                                                                                                           Recently, attempts have been made to
                        Kerala                                                                         franchise out segments of the distribution
                        Tamil Nadu                                                                     business to private entities to bring in
                        Lakshadweep                                                                    improvements. Torrent Power, for
                                                                                                       example, took over the Bhiwandi area
                        Jharkhand
                                                                                                       (near Mumbai) under an input-based
                        West Bengal                                                                    franchisee model.
            Source: Compiled from Data in General Review 2009, CEA                                         India’s distribution system included more
                                                                                                       than 6.76 million ckm of lines and over
                                                                                                       282,000 MVA of distribution transformer
        Eastern and Western Regions and even             In addition, rural areas with significant     capacity as of March 2008. This is assumed
        higher—43.4%—in the northeastern                 loads, works of separation of agricultural    to be growing at an annual average rate
        region. The southern region fares the            and domestic feeders and of high-voltage      of around 3% and 7.5%, respectively.
        best with T&D losses of 19.77%. The              distribution system (11 kV) would also be         The Rajiv Gandhi Grameen Vidyuthikaran
        GoI’s R-APDRP focuses on demonstrated,           taken up.                                     Yojana (RGGVY), aimed at rural electrification,
        sustained loss reduction. The Central                Funding for this project consists of a    is an initiative to provide focus and funds to
        Power Research Institute (CPRI) is the           100% loan for all projects selected. As       rural distribution. As of 15 February 2010,
        epicenter of research and development            the project nears completion and the          a total of 567 projects were sanctioned, at
        for transmission and distribution systems        required targets are met, the loan will be    a cost of $5.5 billion, electrifying 418,499
        in India. Under the XI Plan, their role          progressively converted to a grant. For       un/de-electrified villages.
        as Information Technology consultants            utilities having Aggregate Technical and          The estimated electricity customer base
        assists state utilities to develop baseline      Commercial (AT&C) losses of above 30%,        of 160 million is growing at an annual
        studies and to monitor T&D projects.             the expected reduction would be 3% per        rate of about 4.5%. The average per-
            All urban areas with a population of         year. For utilities with AT&C losses below    capita consumption of 704 kWh in 2007-
        more than 30,000 (10,000 in the case of          30%, the expected reduction would be          08 is expected to surpass 1,000 kWh by
        special-category states) would be covered.       1.5% per year.                                2011-12.

                                                                           22
                                                                                                       2011 India Energy
                                                                                                        Offshore exploration. NELP IX, expected


           Oil & Gas sector
                                                                                                        to launch by the end of 2010, will offer up
                                                                                                        about 45 new oil and gas blocks for auction.
                                                                                                        After a disappointing NELP VIII where less
                                                                                                        than half of the blocks were awarded, the
                                                                                                        GoI remains optimistic for the upcoming
                                                                                                        auction as crude prices have stabilized at
                                                                                                        around $80 bbl.


                                                                                                        were drilled in onshore and offshore areas.
                                                                                                        The onshore regions are predominantly in
                                                                                                        the states of Assam and Gujarat while the
                                                                                                        offshore regions are near Mumbai.
                                                                                                            In 1999, the NELP took effect. Since
                                                                                                        then, the Ministry of Petroleum and Natural
                                                                                                        Gas has signed 203 production-sharing
                                                                                                        contracts under seven rounds of bidding.
                                                                                                        In the seventh round of bidding under
                                                                                                        NELP VII, 181 bids were received from 95
 Cairn




                                                                                                        companies including 21 foreign companies
                                                                                                        (Table 4-3).
          Exploration and                                than the previous year. However, gross             The NELP has facilitated 68 oil and gas
                                                         production of natural gas in the country       discoveries made by private and joint-
          Recovery                                       stood at 32.85 BCM in the same period          venture companies in 19 blocks, adding
          Despite increased exploration and              and 1.33% higher than the previous year        more than 600 MTOE hydrocarbon
          production activities in the country by both   (Table 4-2).                                   reserves. As of April 1, 2009, investment
          national oil companies and private players,       During 2008-09, 381 exploratory and         commitment on exploration under NELP
          India depends on imported crude to meet        development wells totaling 888,000 meters      was about $10 billion, against which
          75% of domestic demand. As shown in
          Table 4-1, as of April 1, 2009, India had
          total reserves of 775 million tonnes of         Table 4-1. Oil and Gas                         Table 4-2. Petroleum
          crude oil and 1,074 billion cubic meters        Reserves                                       Industry Production for
          of natural gas.                                 Crude Oil (MMT)    2005               2009     2008-09
             Production of crude oil has stagnated,                                                      Reserves (Balance Recoverable)
          but there have been a number of natural-        Onshore             376                405
          gas discoveries in India. With the discovery    Offshore            410                369     Crude Oil (MT)               770
          of gas in the Krishna-Godavari Basin (KG        Total               786                775     Natural Gas (BCM)          1,090
          Basin), there has been a perceptible                                                           Production (MT)
                                                          Natural Gas (BCM)
          change in the estimates of natural-gas
          reserves in India’s sedimentary basin.          Onshore             340                287     Crude Oil                  33.51
          Most of the new gas discoveries have            Offshore            761                787     Petroleum Products        152.68
          been made by private players who have           Total             1,101              1,074     Consumption (MT)
          bid for the exploration blocks under the
                                                          Sources: ONGC, OIL, DGH                        Crude Oil                 160.77
          GoI’s New Exploration Licensing Policy
                                                          Note: The oil and natural gas reserves         Petroleum Products        124.17
          (NELP).                                         (proved and indicated) data relate to 1st
             Crude oil production during 2008-            April of each year                             Source: Ministry of Petroleum and Naural Gas
          09 at 33.51 MMT was 1.79% lower
Bechtel




          Reliance Industries’ Jamnagar Refinery. Already the largest greenfield refinery in the world, the expansion completed by Bechtel in
          2008 nearly doubled the output of Jamnagar to 1.24 million barrels per day of nominal crude processing capacity, representing one-third
          of India’s capacity.

                                                                             23
                                                                                                     actual expenditure so far is about $4.7
Table 4-3. Progress Under the New Exploration License Policy                                         billion. In addition, $5.2 billion has
                    NELP I    NELP II    NELP III       NELP IV    NELP V     NELP VI NELP VII       been invested on the development of
                                                                                                     discoveries.
Blocks awarded          25         23            23          21        20         52         44
                                                                                                         The NELP effort opened up deepwater
PSCs signed             24         23            23          20        20         52         41      offshore areas of the country for
                                                                                                     exploration, and seven rounds of NELP
Signed in            2000       2001          2003        2004      2005        2007      2008
                                                                                                     increased the area under exploration to
Area awarded                                                                                         48% of the Indian sedimentary basin area
  (km2)           194,735 263,050 204,588 192,810 115,180 306,200 121,000
                                                                                                     from 11% before the implementation of
Source: Ministry of Petroleum & Natural Gas                                                                .
                                                                                                     NELP Hydrocarbon reserves accretion had
                                                                                                     been more than 600 million tonnes of oil


Oil & Gas sector entities
Integrated oil companies                              development, and production of crude oil       naphtha, motor spirit, aviation turbine
                                                      and natural gas, and transportation of         fuel, kerosene, raw as well as calcinated
Hindustan Petroleum Corporation                       crude oil and production of LPG.               petroleum coke, and sulfur.
Ltd. (HPCL)                                           http://www.oil-india.com                       http://www.nrl.co.in
HPCL is an integrated oil refining and                                                               http://www.bharatpetroleum.com
marketing company with 16% of the market              Gujarat State Petroleum Corporation
share and 10.3% of the nation’s refining              Ltd. (GSPC)                                    Mangalore Refinery and
capacity. Its two coastal refineries in Mumbai        GSPC is India’s only state-government-         Petrochemicals Ltd. (MRPL)
and Visakhapatnam have a combined                     owned company in the oil and gas               A subsidiary of the ONGC, the MRPL is
capacity of 13 MTPA. HPCL also owns and               E&P business. From a small oil and gas         a grass-roots refinery with a capacity of
operates the country’s largest lube refinery,         producing company in Gujarat, it has           9.69 MTPA. It has a versatile design, which
which has a capacity of 335,000 tonnes.               become a vertically integrated large-scale     gives high flexibility for processing crude
http://www.hindustanpetroleum.com/En/                 energy organization in India, excelling in a   oils of various API weights, providing a
UI/Home.aspx                                          wide gamut of hydrocarbon activities.          high degree of automation. This refinery’s
                                                      http://www.gspcgroup.com/gspc.html             petroleum products include LPG, naphtha,
Bharat Petroleum Corporation Ltd.                                                                    motor gasoline, diesel, gas oil, kerosene,
(BPCL)                                                Cairn India Ltd.
                                                                                                     aviation fuel, furnace oil, low sulfur heavy
BPCL is engaged in both refining and retail           Cairn is engaged in the E&P of crude oil and
                                                                                                     stock, bitumen, reformate, feedstock, and
business. It has refineries in Mumbai and             natural gas. Cairn India operates offshore
                                                                                                     sulfur.
Kochi, with a combined capacity of 19.5               platforms, approximately 200 km of subsea
                                                                                                     http://www.mrpl.co.in
MTPA for refining crude oil. BPCL is also             pipelines, and two processing plants.
                                                                                                     http://www.ongcindia.com/english.asp
engaged in the retailing of gasoline, diesel,         http://www.cairnindia.com
kerosene, jet fuel, LPG, a range of oils and
greases, and various non-fuel products.               Refineries                                     Marketing Companies
http://www.bharatpetroleum.com                        Chennai Petroleum Corporation Ltd.             Gas Authority of India Ltd. (GAIL)
Reliance Industries Ltd. (RIL)                        (CPCL)                                         GAIL is India’s principal gas transmission and
RIL has been realizing value across the entire        CPCL, a subsidiary of the Indian Oil           marketing company, and has expanded
energy chain. It has been involved in the             Corporation Ltd., has two refineries with      into gas processing, petrochemicals, LPG
exploration and production of oil and gas as          a combined refining capacity of 10.5           transmission, and telecommunications,
well as refining and marketing of petroleum.          MTPA, mainly producing LPG, motor spirit,      as well as into power, LNG regasification,
The company has 34 domestic exploration               superior kerosene, aviation turbine fuel,      city gas distribution, exploration, and
blocks covering an area of about 331,000              high-speed diesel, naphtha, bitumen, lube      production through equity and joint
km2, one exploration block each in Yemen              base stocks, paraffin wax, fuel oil, hexane,   venture participation.
and Oman, and five coal-bed methane                   and petrochemical feedstocks.                  http://www.gailonline.com/gailnewsite/
blocks. Reliance’s 60-MTPA refinery at                http://www.cpcl.co.in                          index.html
Jamnagar, Gujarat, is the world’s largest.            Bongaigaon Refinery and                        Indraprastha Gas Ltd. (IGL)
http://www.ril.com                                    Petrochemicals Ltd. (BRPL)                     A joint venture of GAIL, the BPCL, and
Essar Oil Ltd. (EOL)                                  BRPL, also a subsidiary of the IOCL, is the    the Government of NCT (National Capital
An integrated oil and gas company, the                first indigenous grass-roots refinery in the   Territory), Delhi, the IGL has established a
EOL has E&P rights in several blocks in               country, integrated with a petrochemical       network for the distribution of natural gas to
the country. Its 10.5-MTPA refinery at                complex at a single location. BRPL has a       consumers in the domestic, transport, and
Vadinar, Gujarat, started production in               total refining capacity of 2.35 MTPA and       commercial sectors in the NCT of Delhi.
2008. It has been built with the state-of-            produces LPG, naphtha, kerosene, gas oil,      http://www.iglonline.net
the-art technology and has the capability             and reduced crude oil.                         Mahanagar Gas Ltd. (MGL)
to produce gasoline and diesel for India as           Numaligarh Refinery Ltd. (NRL)                 A joint venture of GAIL, the BG Group
well as advanced international markets.               NRL, a subsidiary of the Bharat Petroleum      (formerly British Gas), and the Government
http://www.essar.com                                  Corporation Ltd, is a petroleum refining       of Maharashtra, the MGL provides piped
                                                      company designed to process 3 MTPA of          natural gas to households and compressed
E&P companies                                         indigenous crude oil with state-of-the-art     natural gas for transportation across
Oil India Ltd. (OIL)                                  technology. This refinery mainly produces      Mumbai.
OIL is engaged in the business of exploration,        high-speed diesel. It also produces LPG,       http://www.mahanagargas.com


                                                                         24
                                                                                               2011 India Energy
 Table 4-4. Existing and Proposed Liquefied Natural Gas Terminals
 Project and Developer             Location (State)         Capacity (MTPA) Supplier                      Status
 Dahej LNG Terminal                Dahej (Gujarat)          6.5 (to be      Rasgas (Qatar-based Commissioned in February
  (Petronet)                                                expanded to 10) LNG supply company) 2004 and commercial sales
                                                                            and spot cargoes    began in April 2004
 Hazira LNG (Shell and Total)      Hazira (Gujarat)         2.5 (phase I)        Spot cargoes             Commissioned in April 2005
 Dabhol Terminal (owned by    Dabhol (Maharashtra) 5                             Not finalized            75% complete (commissioning
  Ratnagiri Gas and Power Co)                                                                             delayed due to no firm supply
                                                                                                          contracts)
 Kochi LNG (Petronet LNG)          Kochi (Kerala)           2.5                  Not finalized            Project expected to be
                                                                                                          completed by 2011
 Ennore LNG (IOCL, CPCL)           Ennore (Tamil Nadu)      2.5                  Not finalized            Planned
 Mangalore (ONGC and MRPL) Mangalore (Karnataka) 2.5                             Not finalized            Planned
 Source: TERI



equivalent. Under the NELP program,                                                              annum capacity. IOCL operates three
68 oil and gas discoveries have been                                                             crude oil pipelines:
made in 19 exploration blocks. A total of       Indian Oil                                       n Salaya-Mathura-Panipat pipeline, 1,870
149 blocks are under operation under            Corporation Ltd.                                     km, 21 MTPA capacity
production-sharing contracts.                                                                    n Paradip-Haldia-Barauni pipeline, 1,302
    NELP VIII in 2009 offered 70 exploration
                                                (IOCL)                                               km, 7.50 MTPA capacity
blocks comprising 24 deepwater blocks,          IOCL is currently India’s largest integrated     n Mundra-Panipat pipeline, 1,174 km, 6
28 shallow-water blocks, and 18 onshore         oil company. Along with its subsidiaries,            MTPA capacity
blocks. These 70 blocks cover a sedimentary     it accounts for 49% of market share of               In 2008-09, product pipelines including
area of about 164,000 km 2, or about            petroleum products among public-sector           for LPG totaled 12,017 km with a capacity
5.2% of the Indian sedimentary basin            oil companies, 40.4% of national refining        of 68.19 MTPA. Capacity utilization was
area. The 18 onshore blocks fall in the         capacity, and 69% of downstream                  about 77%.
states of Assam (2), Gujarat (8), Haryana       product pipeline capacity. The Indian                Natural-gas pipelines are currently
(1), Madhya Pradesh (3), Manipur (2) and        Oil Group of Companies owns and                  limited but are expected to become
West Bengal (2). In the western, eastern,       operates 10 of India’s 19 refineries, with       more extensive with the increase in the
and Andaman Offshore regions, there             a combined refining capacity of 60.2             availability of gas. All of India’s principal
are 28 shallow-water and 24 deepwater           million tonnes per annum. These include          gas pipelines move gas from the Gujarat
blocks.                                         two refineries of its subsidiary Chennai         coast northeastward to destinations in
                                                Petroleum Corporation Ltd. (CPCL) and            Uttar Pradesh and Haryana.
Refining                                        one refinery of Bongaigaon Refinery                  The most important pipeline in the
                                                and Petro Chemicals Ltd. (BRPL) The              country is the 2,800-km-long HBJ pipeline
The refining capacity in the country stood      company has a crude-oil and product              (Hazira-Bijapur-Jagdishpur), with a capacity
at 177.97 million tonnes per year on April      pipeline network spanning nearly 9,300           of 60 million standard cubic meters per
1, 2009, an increase of more than 19%           km across the country, with a capacity           day. This pipeline supplies gas mainly to
over the previous year. Consequently, total     of 61.72 MTPA.                                   the power and fertilizer plants in northern
refinery throughput in 2008-09 of 160.77        http://www.iocl.com/home.aspx                    and western India.
million tonnes was up 3% over the previous      http://www.cpcl.co.in/                               In addition to the HBJ pipeline, there
year, with a pro-rata capacity utilization                                                       are regional gas pipelines of varying
of 107.9%.                                                                                       sizes in the north Gujarat region (142
    Consequently, the country is a net                                                           km), South Gujarat region (257 km), and
importer of crude oil (128.155 million                                                           Andhra Pradesh’s KG Basin (728 km)
tonnes valued at $72.8 billion) while
                                                Oil and Natural Gas                              among others. Many of these pipelines
being a net exporter of petroleum products      Corporation Ltd.                                 were initially built by the Oil and Natural
(18.647 million tonnes valued at $12
billion). India is emerging as a refinery
                                                (ONGC)                                           Gas Corporation Ltd. and OIL, but were
                                                                                                 subsequently taken over by the Gas
hub as more capacity is added and Indian        ONGC is the largest company engaged              Authority of India Ltd. in 1992.
companies are venturing abroad to set           in the exploration and production of
up refineries.                                  oil and natural gas in the country. It           Liquefied natural gas
                                                is the only fully integrated petroleum
                                                company in India, operating along the            (LNG)
Oil & Gas pipelines                             entire hydrocarbon value chain. ONGC             Importing LNG is one of the ways India
As of March 31, 2009, the total length of       Videsh Ltd. (OVL), a wholly owned                is bridging the demand-supply gap of
crude oil pipelines crossing the country        subsidiary of the ONGC, manages                  energy sources. Two LNG terminals, both
stood at 5,559 km owned by Oil India            the international E&P business for the           in Gujarat, currently are operating: the
Ltd. (OIL) and Indian Oil Corporation           acquisition of overseas reserves.                6.5-MTPA Dahej terminal and the 2.5-
Ltd. (IOCL). OIL owns the 1,405-km-long         www.ongcindia.com/english.asp                    MTPA Hazira terminal. Table 4-4 outlines
Duliajan-Digboi-Bongaigaon-Barauni              www.ongcvidesh.com                               four more terminals at various stages of
pipeline, with 7.68 million tonnes per                                                           development.

                                                                   25
                                                                                                                   Coal is king. Growing demand for coal will
                                                                                                                   eventually overburden the current railway
                                                                                                                   system resulting in fuel shortages for power
                                                                                                                   generation stations. Improvements to the
                                                                                                                   current infrastructure and new means of
                                                                                                                   coal transport, such as ferry and coal-slurry
                                                                                                                   pipelines, are being explored to ensure energy
                                                                                                                   security for India.


                                                                                                                       The public sector still dominates the
                                                                                                                   mining and production of coal in India.
                                                                                                                   CIL, along with its subsidiaries, has a market
                                                                                                                   share of over 83%. The next-largest—the
                                                                                                                   joint state and central government SCCL—
                                                                                                                   has an 8.6% share. But opportunities for
                                                                                                                   foreign and private investment can also


                            Coal sector
                                                                                                                   be found.
                                                                                                                       In June 2010, South Africa-based Sasol
                                                                                                                   Ltd. announced plans to spend $10 billion
                                                                                                                   in a 50-50 joint venture with Tata Group
Coal India




                                                                                                                   on a coal-to-fuel project in Orissa, with the
                                                                                                                   goal of producing 80,000 barrels-per-day
                                                                                                                   of motor fuel by 2018. And CIL scheduled
                                                                                                                   a $2.8-billion initial public offering for late


             C
                      oal provides more than one-quarter        Commission’s Integrated Energy Policy              July 2010, although it was subsequently
                      of the world’s primary energy and         anticipates a steep rise in demand for coal,       postponed to September.
                      is used to generate nearly 40%            particularly to meet the country’s power
             of its electricity. India’s coal consumption       needs (Table 5-2).                                 Exploration and
             ranks third in the world, and the country’s           The Ministry of Coal determines
             demand for coal continues to grow much             policies and strategies for exploration            recovery
             faster than the world average. Table 5-1           and development of coal and lignite                The Geological Survey of India, Central
             estimates its recoverable reserves at 101.9        reserves as well as all matters relating to        Mine Planning & Design Institute Ltd., and
             billion tonnes, about 10% of the total world       coal production, supply, distribution, and         Mineral Exploration Corporation Ltd. have
             reserves of both lignite and coal.                 pricing. Its public-sector undertakings            estimated total coal reserves at 267.21
                  Coal and lignite meet about 50% of            include Coal India Ltd.(CIL), Neyveli              billion tonnes as a result of exploration
             India’s commercial energy requirements.            Lignite Corporation Ltd., and the Singareni        activities carried out at depths up to 1,200
             More than 75% of the coal and lignite is           Collieries Company Ltd. (SCCL), which is           meters. Table 5-3 breaks down these
             consumed by the country’s power sector.            a 51-49 joint sector undertaking between           reserve estimates to the state level.
             Cement and steel (coking coal) are the             the Government of Andhra Pradesh and                   Many coal resources are available in
             other significant consumers. The Planning          the GoI.                                           sedimentary rocks of older Gondwana


              Table 5-1. World Recoverable Coal                                  Table 5-3. Distribution of Coal Resources
                         Reserves (billion tonnes)                                          (million tonnes)
              Region/Country         Coal          Lignite         Total
                                                                                 State                  Proved          Indicated       Inferred          Total
              World Total           827.4          173.4        1,000.8
                                                                                 Andhra Pradesh     9,194                  6,748          2,985        18,927
              United States         234.7           36            270.7
                                                                                 Arunachal Pradesh     31                     40             19            90
              Russia                161.6           11.5          173.1
                                                                                 Assam                348                     36              3           387
              China                  89.1           20.5          109.6
                                                                                 Bihar                  —                      —            160           160
              India                  99.3*           2.6          101.9
                                                                                 Chhattisgarh      10,910                 29,192          4,381        44,483
              Source: Expert Committee on Coal Reforms
              * Total proved “in place” reserves instead of recoverable          Jharkhand         39,480                 30,894          6,338        76,712
              reserves relevant for other countries                              Madhya Pradesh     8,041                 10,295          2,645        20,981
                                                                                 Maharashtra        5,255                  2,907          1,992        10,154
              Table 5-2. Coal Demand Projections                                 Meghalaya             89                     17            471           577
                         (million tonnes)
                                                                                 Nagaland               9                      —             13            22
              Plan      Period          Power      Non-Power          Total
                                                                                 Orissa            19,944                 31,484         13,799        65,227
              XI       2011/12            436          164             627
                                                                                 Sikkim                 —                     58             43           101
              XII      2016/17            603          221             824
                                                                                 Uttar Pradesh        866                    196              —         1,062
              XIII     2021/22            832          299           1,131
                                                                                 West Bengal       11,653                 11,603          5,071        28,327
              XIV      2026/27          1,109          408           1,517
                                                                                 Total            105,820                123,470         37,920       267,210
              XV       2031/32          1,475          562           2,037
                                                                                 Source: Ministry of Coal (as of April 1, 2009)
              Source: Integrated Energy Policy, Planning Commission

                                                                                   26
                                                                                                 2011 India Energy
                                                                                                  recommended by the Standing Linkage
 Table 5-4. Coal Resources in Sedimentary Rock                                                    Committee.
            (million tonnes)
 Formation                    Proved          Indicated           Inferred            Total
                                                                                                  Coal-bed methane
 Gondwana Coals             105,343            123,380            37,414             266,137
                                                                                                  Investor response was lukewarm in 2001
 Tertiary Coals                 477                 90               506 *             1,073
                                                                                                  to the first round of bidding for blocks
 Total                      105,820            123,470            37,920 *           267,210      to develop coal-bed methane. But by
 *Includes 456 million tonnes of Inferred resources established through mapping in                2006, both national and international
 Northeastern region.                                                                             players were seeing a change in the
                                                                                                  commercial viability of CBM, and the
                                                                                                  third round that year was marked by a
                                                                                                  perceptible rush to grab a share of the
 Table 5-5. Allocation of                           Table 5-6. Coal Letters of                    action. Now, after three rounds of CBM
 Coal Blocks to Private                             Assurance (LOA)                               bidding, 26 blocks have been offered
                                                                                 Quantity
 Companies                                                              Number Approved           and 23 CBM exploration blocks have
                               Geological           Name of Sector      Approved (MTPA)           been signed.
                                Reserves                                                              More than 6 trillion cubic feet (TCF) of
 Sector/End Use Blocks            (MT)              Power Utilities     15               57
                                                                                                  reserves have already been established
 Power             20             2,702             Captive Power                                 in four CBM blocks. First commercial
                                                      Plants including 224               42       production of CBM commenced in the
 Iron and Steel    47             6,703               Cement CPPs                                 country in July 2007 at the rate of about
 Small and Isolated 2                 9             Independent Power                             72,000 cubic meters per day. Table 5-7
 Cement             3               232               Producers         12               24       displays the details of the CBM blocks
 Ultra Mega                                         Cement Plants       72               21       awarded so far.
                    7            2,607                                                                  The fourth round of CBM Policy offers
   Power Project                                    Sponge Iron Units 236                17
                                                                                                  10 blocks covering an area of about 5,000
 Total             79           12,254              Total                    559        161       km2 falling in the states of Assam (1), part
 Source: Annual Report 2007-08, Ministry of                                                       Chhattisgarh and part Madhya Pradesh
 Coal, GoI                                          Source: Annual Report 2007-08, Ministry of
                                                    Coal, GoI                                     (1), Jharkhand (2), Madhya Pradesh (2),
                                                                                                  Maharashtra (2), Orissa (2) and Tamil Nadu
                                                                                                  (1). The total exploration period has been
formations of peninsular India and younger        allocated to Public Sector Undertakings.        reduced from eight years to five.
Tertiary formations of northeastern/              Private companies have been allocated
northern hilly region. Based on the results       100 blocks with geographical reserves of        Shale oil
of regional/promotional exploration,              17.93 billion tonnes and production has
where the boreholes are normally placed           begun in 23 blocks.                             A preliminary assessment of the sedimentary
1-2 km apart, the resources are classified            During 2007-08, 45 coal blocks with         rocks in India suggests that there could be
as “indicated” or “inferred.” Subsequent          total geological reserves of 11.386 billion     around 137 billion tonnes of oil available
detailed exploration in selected blocks,          tonnes were allocated to public and private     in shale in Assam and Arunachal Pradesh
where boreholes are less than 400m apart,         companies, of which 21 blocks with total        alone. The Cambay basin, off the Gujarat
upgrades the resources into the more-             geological reserves of 8.64 billion tonnes      Coast, also has shale gas deposits. Of this,
reliable “proved” category. Table 5-4 reports     were allocated to public and private            around 10% is estimated to be recoverable
the results as of April 1, 2009.                  companies in the power sector. Table 5-6        reserves.
    Thus, of the estimated reserves of            shows the commitment of coal supply                 The Directorate General of
267 billion tonnes, 105 billion tonnes            through the letter of assurance (LOA)           Hydrocarbons (DGH) plans to come up
are Proved. Even on the conservative                                                              with an exploration and licensing policy,
assumption of 60% recoverability for the                                                          on the lines of the New Exploration and
Proved resources, about 64 billion tonnes           Table 5-7. Status of CBM                      Licensing Policy (NELP), for shale oil and
could be recovered. This could sustain              Blocks                                        gas in India once the initial studies are done
a production level of over 1,800 million                                                          and deposits are established.
tonnes per year for the next 30 years.              Blocks Awarded                     3              The DGH has formed a consortium with
    Up to December 2007, the Ministry of            Under Round I                      5          state-run Indian Oil Corporation (Indian
Coal had allocated 172 Coal Blocks with             Under Round II                     8          Oil), Mineral Exploration Corporation
reserves of coal of 38.05 billion tonnes                                                          Ltd. (MECL) and the French Institution
to eligible companies. The private sector           Under Round III                   10          of Research in Earth Sciences, BRGM,
was allocated 79 blocks with geological             Total                             26          to establish the potential of shale-oil
reserves of 12,254 MT (Table 5-5).                  Area Awarded (sq km)          13,600          exploration in India.
    Private-sector participation in the coal
sector is restricted to joint ventures and          Total CBM Resources (BCM)      1,374
companies that can use coal for captive             CBM Wells drilled                210
                                                                                                  Planned coal projects
purposes. If the production is greater              Expected Production Potential                 At March 31, 2009, out of a total of
than what is required for internal use, the          (MMSCMD)                         38          701 mining projects costing more than
balance must be sold to Coal India Ltd. As          Approved Gas Sale Price                       $450,000, 411 projects stood completed
of 31 March 2009, 201 coal blocks with                                              6.79          (including projects which are merged,
                                                     ($/MMBTU)
reserves of 45.89 billion tonnes had been                                                         completed and merged, and where coal
allocated to eligible companies.                    Source: India - Petroleum Exploration and     reserves have since been exhausted) and
                                                    Production Activities, 2007-08
    Of the 201 blocks, 97 have been                                                               160 projects were in various stages of

                                                                       27
                                                                                              Coal India Ltd. (CIL)
                                                                                              Headquartered at Kolkata (formerly
                                                                                              Calcutta), CIL is the apex body in the
                                                                                              coal industry and is responsible for laying
                                                                                              down policy guidelines and coordinating
                                                                                              work of its nine subsidiaries. The eight
                                                                                              subsidiaries responsible for coal mining
                                                                                              activity are:
                                                                                              n Bharat Coking Coal Ltd., Dhanbad
                                                                                              n Central Coalfields Ltd., Ranchi
                                                                                              n Mahanadi Coalfields Ltd.,
                                                                                                   Sambalpur
                                                                                              n Western Coalfields Ltd., Nagpur
                                                                                              n South Eastern Coalfields Ltd.,
                                                                                                   Bilaspur
                                                                                              n Northern Coalfields Ltd., Singrauli
                                                                                              n Eastern Coalfields Ltd., Asansol
                                                                                              n North Eastern Coalfields, Guwahati
                                                                                                   The ninth subsidiary, Central Mine
                                                                                              Planning and Design Institute Ltd., Ranchi,
                                                                                              supports the planning and design needs of
                                                                                              new coal projects and is responsible for the
                                                                                              reorganization of existing mines for optimal
                                                                                              production of coal. CIL, on behalf of all
                                                                                              its subsidiaries, is engaged in investment
                                                                                              planning, manpower management,
                                                                                              purchase of heavy machinery and financial
                                                                                              budgeting.
                                                                                              http://www.coalindia.in



                                                                                             Coal sector entities
                                                                                             Neyveli Lignite Corpora-
                                                                                             tion (NLC)
                                                                                             NLC is engaged in the exploitation and
                                                                                             excavation of lignite, generation of
                                                                                             2,490 MW of thermal power, and sale
                                                                                             of raw lignite. It has the biggest open-
                                                                                             cast mechanized lignite mines in India. It
                                                                                             mined 21.58 million tonnes of lignite in
                                                                                             2007-08. NLC also provides consultancy
                                                                                             in mine planning and renovation of
                                                                                             power plants.
                                                                                             http://www.nlcindia.co.in
                                                                                             Singareni Collieries Com-
                                                                                             pany Ltd. (SCCL)
                                                                                             SCCL is a joint sector undertaking of the
                                                                                             Government of Andhra Pradesh and the
                                                                                             Government of India, with equity capital
implementation. Out of 160 ongoing            an increasingly large share of India’s         in the ratio of 51:49. Headquartered at
projects, 125 were on schedule and 35         energy. Associated ports, railways and         Kothagudem in Andhra Pradesh, SCCL
were delayed. Reasons include delay in        transportation infrastructure will need to     produced 41 million tonnes of coal in
environmental and forestry clearances,        be developed accordingly. In the current       2007-08.
delay in acquisition of land and associated   scenario (2009-10), 404 million tonnes         http://scclmines.com
problems of rehabilitation, adverse geo-      of coal are required for the power sector.
mining conditions and problems with           The government-owned companies CIL
law and order. Some areas of India have       and SCCL are able to supply 343 mt            power projects, their development has
experienced extended periods of rebellion     and the captive mines 20 mt. This still       been slow, resulting in the coal shortage.
or insurgency.                                leaves a shortfall of 41 mt and the power     Among the obstacles to coal development
    If the power sector is required to        companies have been advised to import         have been coordinated development of
grow at 10% per year, coal availability       28.7 mt of coal. This shortfall is expected   the rail network and a lack of other models
from domestic sources should also             to persevere into the XII Plan.               for coal exploration and mining, such
grow at 10%, and possibly even faster,           Though a number of coal blocks have        as private-sector participation through a
since projections show coal supplying         been allocated by the Ministry of Coal for    public-private partnership.

                                                                 28
                                                                                                  2011 India Energy
Appendix 1: Idiosyncratic India
Numeric system                                       person, on the other hand, would refer           in metric units. A handful of industries, such
                                                     to one crore rupees or INR 1 crore, not “a       as construction and real estate, still use both
This handbook presents numeric data and              million rupees.” One billion rupees would        the metric and Imperial systems, probably
weights and measures in terms that are               be “INR 1 arab.”                                 because of their continued reliance on
familiar to the Western tradition. But investors                                                      designs originating in the U.S. These will
reading Indian business and government                  A word of warning is in order here. If
                                                                                                      probably complete their conversion to metric
documents will be plunged into a language            in Mumbai, India’s commercial capital, you
                                                                                                      when the U.S. does.
that requires some explanation.                      are doing business with someone who uses
                                                     khokha instead of crore and peti instead of          Temperature is almost always in degrees
     The traditional Indian numeric system           lakh, you’ve fallen in with bad company.         Celsius and rainfall is measured in centimeters
is still used in the subcontinent of India,          These are slang terms used in the Mumbai         and millimeters. However body temperature
Bangladesh, Nepal and Pakistan (Table A-1).          underworld’s parallel economy.                   is still sometimes measured in degrees
It is based on a unique grouping of two                                                               Fahrenheit.
decimal places instead of three as is common             The Indian numeric system is very
in the West. Thus, while Indians write 1,000         ingrained. Many expatriates in India recognize       While body weight is always measured in
for “one thousand,” their concession to the          the need to speak in lakhs and crores.           kilograms, body height is often measured in
Western tradition ends there. Where a                Although, as mentioned, there are many           feet and inches, although many documents
                                                     other terms for higher numbers, in practice it   increasingly use centimeters.
Westerner writes 100,000 and says “one
hundred-thousand” for 105, Indian business           is more common to repeat lakh and crore or          Current status of Imperial units:
English writes 1,00,000, and expresses it            to combine them to designate those higher        n Imperial units that are long forgotten:
as “1 lakh” (or lac). The next step up in            numbers. One lakh crore, for example, would         Ounces, gallons, miles, pounds, pints,
the Indian numeric system is 107, written            refer to 1012, or one trillion. However, with       and quarts (only metric equivalents are
1,00,00,000 and expressed as “1 crore.”              international companies now participating in        used, and it is likely that people born after
                                                     government tenders, by and large the U.S.           1980 might not even have heard of the
    “Crores,” “Lakhs,” and the practice of           dollar is currency to be quoted.                    old measures)
grouping decimal places by twos instead
of threes in numbers larger than 1,000               Weights and measures                             n Imperial units used along with metric
are widespread in Indian banking, stock              India was one of the first countries in the         equivalents: Inches, feet, yards (square
exchanges, government data, journalism               developing world to metricate its economy           yards for area), degrees Fahrenheit (Both
and business. The place value system is              progressively. Metric weights have been             metric and Imperial units are popular)
derived from Sanskrit, India’s classical             compulsory in trade since 1962, although         n Imperial units more popular: Acres
language, in which lakh, crore and a whole           Imperial measures are still common in               (hectares are generally used only in
array of other terms serve as counterparts           some other applications. Fuel efficiency            government documents)
to the West’s million, billion, trillion, etc. But   is measured in kilometers per liter. Tire
instead of naming groups of 103, Sanskrit,           pressure is measured in kilograms per                Indian abbreviations also may confuse
and now Indian business English, names               square centimeter (pounds per square             the newcomer. “Cumec,” for example,
groups of 102.                                       inch only in some very old gauges) and           is a unit of volume flow rate equal to
                                                     tread sizes are in millimeters, while tire-rim   1 cubic meter per second, common
   Indians shift smoothly between their                                                               in the hydropower industry. We have
traditional numeric nomenclature and the             diameters are still measured in inches, as is
                                                                                                      included translations for some common
                                                     common throughout the world.
Western standard. They speak in dollars in                                                            abbreviations in the Acronyms pages, others
banking, for example, and a professional                While road distances are in kilometers,       in the text. The reader is advised to ask an
would never say “one lakh dollars.” He               road widths are popularly measured in feet,      Indian acquaintance when encountering
would say “one hundred-thousand dollars,”            but official documents use meters. Almost all    unfamiliar terms.
and would write $100,000. The same                   types of industry in India operate exclusively                             Neelam Mathews




                                Table A-1. India’s Unique Number System
                                                                                        No. of
                                Term                                     Figure         Zeroes        In Words
                                lakh (lac)                        1,00,000                5           Hundred thousand
                                crore                          1,00,00,000                7           10 million
                                arab                        1,00,00,00,000                9           1 billion
                                kharab                   1,00,00,00,00,000               11           100 billion
                                neel                  1,00,00,00,00,00,000               13           10 trillion
                                padam              1,00,00,00,00,00,00,000               15           1 quadrillion
                                shank           1,00,00,00,00,00,00,00,000               17           100 quadrillion




                                                                         29
                                                 Appendix 2: Acronyms
AEC   Atomic Energy Commission .......................... www.aec.gov.in                       MNRE Ministry of New and Renewable Energy .............. mnre.gov.in
AERB  Atomic Energy Regulatory Board .................www.aerb.gov.in                          MoC Ministry of Coal ...............................coal.nic.in/welcome.html
AHEC  Alternate Hydro Energy Centre ............................. ahec.org.in                  MoP Ministry of Power ......................................... powermin.nic.in
AMD   Atomic Minerals Directorate for                                                          MoPNG Ministry of Petroleum and Natural Gas .........petroleum.nic.in
        Exploration and Research ..........................www.amd.gov.in                      MPP Merchant power plant
ATE   Appellate Tribunal for Electricity                                                       MRPL Mangalore Refinery and Petrochemicals Ltd. ........ www.mrpl.co.in
BARC Bhabha Atomic Research Centre................www.barc.ernet.in                            MTPA Million tonnes per annum
BBMB Bhakra Beas Management Board                                                              MW Megawatts
       .............................................bbmb.gov.in/english/index.asp
                                                                                               MWeq Megawatt Equivalent
BCM Billion cubic meters
                                                                                               NEEPCO North Eastern Electric Power Corporation Ltd.
BEE   Bureau of Energy Efficiency ...................www.bee-india.nic.in                               ............................................................. www.neepco.gov.in
BHAVINI Bharatiya Nabhikiya Vidyut Nigam Ltd.                                                  NELP New Exploration Licensing Policy
       ............................................... www.bhavini.nic.in/main.asp
                                                                                               NFC Nuclear Fuel Complex................ www.nfc.gov.in/default.htm
BPCL Bharat Petroleum Corporation Ltd. www.bharatpetroleum.com
                                                                                               NHDC Narmada Hydroelectric Development Corporation Ltd.
BRNS Board of Research in Nuclear Sciences                                                              ............................................................www.nhdcindia.com
       .................... www.barc.ernet.in/webpages/brns/brns1.html
                                                                                               NHPC National Hydroelectric Power Corporation Ltd.
BRPL Bongaigaon Refinery and Petro Chemicals Ltd.                                                       ...........................................www.nhpcindia.com/index.aspx
CBM Coal Bed Methane                                                                           NLC Neyveli Lignite Corporation Ltd. ...............www.nlcindia.co.in
CCO Office of the Coal Controller’s Organization                                               NLDC National Load Despatch Centre..........................www.nldc.in
CEA   Central Electricity Authority ............................ www.cea.nic.in                NPCIL Nuclear Power Corporation of India Ltd. ......www.npcil.nic.in
CERC Central Electricity Regulatory Commission ......... cercind.gov.in                        NPTI National Power Training Institute
CESC CESC Ltd........................www.cescltd.com/cesc/menu.html#                                    .....www.powermin.nic.in/training/national_power_training.htm
CHT Centre for High Technology ................................ www.cht.in                     NRL     Numaligarh Refinery Ltd.................................. www.nrl.co.in
CIL   Coal India Ltd. ............................................www.coalindia.in             NTPC National Thermal Power Corporation Ltd.
CMPDI Central Mine Planning & Design Institute Ltd. .......www.cmpdi.co.in                              ........................................................ https://www.ntpc.co.in
CPCL Chennai Petroleum Corporation Ltd. ............. www.cpcl.co.in                           OIDB Oil Industry Development Board .................www.oidb.gov.in
CPRI Central Power Research Institute..........................www.cpri.in                     OIL     Oil India Ltd. .............................................www.oil-india.com
CPSU Central Public Sector Undertaking                                                         OISD Oil Industry Safety Directorate
CTU Central Transmission Utility                                                               ONGC Oil and Natural Gas Corporation Ltd.
C-WET Centre for Wind Energy Technology ........ www.cwet.tn.nic.in                                     ......................................... www.ongcindia.com/english.asp
DAE Department of Atomic Energy .................... www.dae.gov.in/                           OVL ONGC Videsh Ltd. ..............................www.ongcvidesh.com
DGH Directorate General of Hydrocarbons ....... www.dghindia.org                               PCRA Petroleum Conservation Research Association .........www.pcra.org
DISCOM Distribution company                                                                    PFC     Power Finance Corporation Ltd................ www.pfcindia.com
DVC Damodar Valley Corporation .... www.dvcindia.org/index.htm                                 POWERGRID Power Grid Corporation of India Ltd.
E&P   Exploration and production                                                                        ............. www.powergridindia.com/PGCIL_NEW/home.aspx
ECIL Electronics Corporation of India Ltd. ................www.ecil.co.in                      PPAC Petroleum Planning & Analysis Cell ............. www.ppac.org.in
EIL   Engineers India Ltd. ........................... engineersindia.eil.co.in                PSU     Public Sector Undertaking
EOL   Essar Oil Ltd. ................................................. www.essar.com           PTC     PTC India Ltd............................................ www.ptcindia.com
GAIL GAIL (India) Ltd......... www.gailonline.com/gailnewsite/index.html                       R-APDRP Restructured Accelerated Power Development and
                                                                                                       Reform Programme........www.pfc.gov.in/apdrp/apdrp2.html
GoI   Government of India............................................india.gov.in
                                                                                               REC     Rural Electrification Corporation Ltd. ................. recindia.nic.in
GSI   Geological Survey of India....................www.portal.gsi.gov.in
                                                                                               REL     Reliance Energy Ltd...................................... www.rinfra.com
GSPC Gujarat State Petroleum Corporation Ltd.
       .......................................... www.gspcgroup.com/gspc.html                  RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana
                                                                                                        ............................rggvy.gov.in/rggvy/rggvyportal/index.html
HPCL Hindustan Petroleum Corporation Ltd.
       ................www.hindustanpetroleum.com/En/UI/Home.aspx                              RIL     Reliance Industries Ltd. .......................................www.ril.com
HWB Heavy Water Board .....................www.heavywaterboard.org                             RLDC Regional Load Despatch Center
IEEMA Indian Electrical and Electronics Manufacturers Association                              RPPO Renewable Power Purchase Obligation
       ................................................................... www.ieema.org       SCCL Singareni Collieries Company Ltd..................... scclmines.com
IEX   Indian Energy Exchange ...........................www.iexindia.com                       SEB     State Electricity Board
IGCAR Indira Gandhi Centre for Atomic Research......www.igcar.ernet.in                         SEC     Solar Energy Centre .......... mnre.gov.in/sec/sec-objective.htm
IGL   Indraprastha Gas Ltd. ................................ www.iglonline.net                 SERC State Electricity Regulatory Commission
IOCL Indian Oil Corporation Ltd.............www.iocl.com/home.aspx                             SJVN SJVN...................................................................... sjvn.nic.in
IREDA Indian Renewable Energy Development Agency Ltd.                                          SLDC State Load Despatch Centre
       ........................................................................www.ireda.in    SSS-NIRE Sardar Swaran Singh National Institute of
IREL  Indian Rare Earths Ltd. .................................. www.irel.gov.in                           Renewable Energy ......................mnre.gov.in/nire-rdd.htm
kW    Kilowatts                                                                                STU     State Transmission Utility
MECL Mineral Exploration Corporation Ltd. .......... www.mecl.gov.in                           TCF     Trillion cubic feet
MGL Mahanagar Gas Ltd. ..................... www.mahanagargas.com                              TERI    The Energy and Resources Institute ..........................teriin.org
MMT Million tonnes                                                                             THDC Tehri Hydro Development Corporation Ltd. .......... thdc.gov.in
MMTOE (or MTOE) Million tonnes of oil equivalent                                               TRANSCO Transmission company
MNES Ministry of Non Conventional Energy Sources                                               UMPP Ultra Mega Power Plant
                                                                                              30
                     Appendix 3:
     Energy reports and planning and policy links
Atomic Energy Regulatory Board ............................................................................................................................ www.aerb.gov.in/
Central Electricity Regulatory Commission .................................................................................................................... cercind.gov.in/
Directorate General of Hydrocarbons .................................................................................................................. www.dghindia.org/
EIA India Country Analysis Brief ..................................................................................................www.eia.doe.gov/cabs/India/pdf.pdf
Electric Power Survey 17 ................................................................................www.cea.nic.in/planning/17TH%20EPSR-Highlights.pdf
The Electricity Act 2003 ................................................................................www.cea.nic.in/home_page_links/ElectricityAct2003.pdf
Expert Committee on Road Map for Coal Sector Reforms, Part I ..................................................................coal.nic.in/expertreport.pdf
Expert Committee on Road Map for Coal Sector Reforms, Part II ................ www.indiaenvironmentportal.org.in/files/expertreport2.pdf
Integrated Energy Policy, Report of the Expert Committee, August 2006................... planningcommission.nic.in/reports/genrep/rep_intengy.pdf
National Action Plan on Climate Change .................................................................................................. pmindia.nic.in/Pg01-52.pdf
National Electricity Policy 2005 ..................................................................... www.cea.nic.in/planning/national_Electricity_policy.htm
National Tariff Policy 2006 ............................................................................. www.powermin.nic.in/whats_new/pdf/Tariff_Policy.pdf
Petroleum & Natural Gas Regulatory Board .......................................................................................................... www.pngrb.gov.in/
Planning Commission of the Government of India .................................................................................... planningcommission.nic.in/
Power Sector in India: White Paper on Implementation Challenges and Opportunities
....................................................................... www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/PowerSector_2010.pdf
Renewable Energy Certificate Regulation 2010 .................................................................... cercind.gov.in/regulation/REC_2010.html
Report of the Expert Committee on Integrated Energy Policy ................................www.indiaenvironmentportal.org.in/files/energy.pdf
Rural Electrification Policy 2006 ..................................................................... www.powermin.nic.in/whats_new/pdf/RE%20Policy.pdf
USAID India Country Report
...........................usaid.eco-asia.org/programs/cdcp/reports/Ideas-to-Action/From%20Ideas%20to%20Action_Complete%20Report.pdf
World Energy Outlook 2007, IEA ...................................................................www.iea.org/textbase/nppdf/free/2007/weo_2007.pdf


                                                                                    31
IPG—Industrial Project Group Srl

          Principal Activities
     n	   Feasibility	studies	for	large	fossil-fired,	waste-to-energy,	
          and	nuclear	power	plants

     n	   Retrofit	of	existing	subcritical	coal-fired	boilers	to	
          ultrasupercritical operation

     n    Independent-engineer services for banks and other
          financial	institutions,	private	investors,	and	power	plant	
          owners	worldwide

     n	   Help	determine	R&D	needs	of	plant	owner/operators	
          and developers

     n    Feasibility studies of advanced carbon capture and
          storage	systems	and	advanced	gasification	processes




                       Please contact:
                  Giorgio	Dodero,	chairman	
                    g.dodero@ipgsrl.com

								
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