Energising India 2010 by vyas sivanand

Sushilkumar Shinde, Minister of Power, Government of India

Message I am delighted to note that the Indian Express Limited is bringing out a special edition on the power sector in the country. The Indian Power sector is indeed worth telling considering its immense potential, its geographic vastness and the wide demand. As the development of India’s Power Sector is vital for the country’s sustained and inclusive growth, the Government of India has embarked on an ambitious program to provide power to all by 2012. It plans to increase generation capacity from the present 155 GW to over 200 GW by the end of XI Plan, including through mobilization of private sector investment to the maximum extent possible. Cleaner energy sources – hydro, nuclear, solar, wind and biomass – are also being developed. Understanding the immense potential of power and its criticality in the coming years for the country, I am glad to note that The Indian Express Limited initiated the annual handbook titled “Energising India”, three years back. It is indeed heartening that the newspaper is trying to create awareness about the sector, the Government’s initiatives and plans as well as analyzing the ambition set by the Government. It is indeed a commendable endeavour by the Group, which is known for its path breaking initiatives. I wish the Group all the best in its efforts and future endeavours.

Sushilkumar Shinde

March 2010

POWER ‘FAR’ FROM ALL? The Ministry of Power has set a goal - Mission 2012: Power for All. A comprehensive Blueprint for Power Sector development has been prepared encompassing

Biju Mathews General Manager The Indian Express Limited

an integrated strategy for the sector development with objectives of sufficient power to achieve GDP growth rate of over 8%, quality power, optimum power cost, commercial viability of power industry and Power for all. But the all India installed capacity of power stations located in the regions of mainland and islands as on 31st December 2009 is only 1,56,092.23 MW, which in itself is way below the demand. According to the government’s ‘safe’ mission of Power for all, the target is to achieve an installed generation capacity of at least 2, 00,000 MW by 2012. But then in literal terms it does not even come close to “Power for all”. India does not have even one state which is currently power surplus. There is a lot more to be done. To have an installed capacity that meets the requirement in every nook and cranny of the country is the first challenge. The other challenge is to be able to supply this power to the entire country which needs an expansion of the regional transmission network and inter regional capacity to transmit power. The latter is required because resources are unevenly distributed in the country and power needs to be carried great distances to areas where load centers exist. In the future, on a broader scale, the entire gamut of energy will be a global industry, vital to economic development having strong political and social implications. The strong correlation between economic growth, welfare and energy use means that future demand levels, security of supply, energy mixes, production levels and general market dynamics will increasingly move to the fore as key issues. In this edition of Energising India, we present a report on the ‘Power for all’ agenda of the government and the country’s preparedness to meet the same. We have also covered the critical aspect of Rural electrification as well and the way it is facing huge hurdles but is still flickering with hope of better times. We have also presented “Generation Giants” of the country in terms of installed capacity where we have featured top states, region-wise. The statistics from the Central Electricity Authority clearly indicate the situation of power in the country. We hope that with this edition of Energising India, in its third year; will again give you a better understanding of the power situation of the country and the challenges which it faces in the near future.

March 2010

Power for All by 2012. Are We Prepared?.....................6

Meeting the Vision of ‘Power for All’ by 2012............................12

PowerGrid..........................22

JSW...................................28

Websol......................................34

WinWind..................................38

Sujana.....................................44

HPCL

Generation Giants of India.....................................64

Transco..........................37

NEEPCO..................................52

......................................56

Rural Electrification: Challenges Galore, Hope Lives...................18

Chairman of the Board : Viveck Goenka, Vice President & Head, B P D : Sandeep Khosla, General Manager : Biju Mathews, Chief Managers : Anthony Daniel, Y. S. Venkat Swamy, Managers : L. Francis Farias, A.K. Shukla, Dy. Manager : Vijay Kulkarni, Editorial: Chief of Bureau : Vyas Sivanand, Reporters : Amguth Raju, Amal Tewari, Design & Layout : N. Prasad, Production & Circulation : M.E.A. Mujahid, Photographer : M. Vidya Sagar Rao, Support & Co-ordination : M. Narender, B. Naresh, IT Support : M. Hemant Kumar, R. Suman Kumar Copyright : The Indian Express Limited. All rights reserved. Reproduction in any manner, electronic or otherwise, in whole or in part, without prior written permission, is prohibited. Articles by contributors are solely the author’s views. They do not reflect the publication’s views. All correspondence should be sent to : The Indian Express Limited, Business Publications Division, 6-3-885/7/B, Ground Floor, V.V. Mansion, Somajiguda, Hyderabad-82 Tel: 23418672, 23418673/674, 679 to 680, 66631457 Tele Fax : 23418675 / 681 E-mail : bpd.hyd@expressindia.com Website : www.expressindia.com

POWER FOR ALL BY 2012 ARE WE PREPARED? Over the decades, the ‘Five Year Plan’ of the Indian Government has been the blueprint of growth and development across all sectors of the Indian economy. But no other sector has received as much importance and investment as the power sector has. Now with the implementation of the 11th Five Year Plan (2007-2012), the government’s power ministry has proposed a highly ambitious agenda of ‘Power for All by 2012’. Many schemes, programmes and projects have been introduced and implemented to make this dream a reality, but with just two more years to go in the 11th Plan, just how prepared is the power ministry in achieving this daunting task? We analyse the progress made thus far.

March 2010

conomic development and improvement in the quality of living of any country require Power supply as one of the foundations. With the ambitious agenda of Power for All – 2012 set by the Indian Power Ministry, the nation is expecting the power sector to provide the citizens with uninterrupted quality power supply and offer basic electricity services to all. To live up to these expectations, the power sector needs to incorporate optimal utilisation

from less than 2,000 MW capacity added in the private sector in the 10th Plan, more than 20,000 MW of capacity addition in the private sector is under execution in the 11th Plan. The Power Ministry has also taken up the task of setting up many Ultra Mega Power Projects (UMPPs) of 4,000 MW each. Programmes have been implemented to augment inter-regional transfer capacity from 18650 MW to over

The Power for All Agenda Unfortunately, that is all that can really be said about the Power Ministry’s endeavours to provide ‘Power for All by 2012’. This agenda set by the ministry was meant to be a comprehensive blueprint for Power Sector development, prepared encompassing an integrated strategy for the sector development. The government was aiming to generate sufficient power to achieve GDP growth

Though there has been improvement, the growth in demand for electricity has surpassed the generation of electricity, resulting in the continued shortage of power. In the 11th Plan a capacity addition target of 78,700 MW has been proposed to meet the present shortages and the growing demand in the country. of energy resources by implementing efficient technologies in generating, transmitting and distributing power.

38000 MW by the end of 2011-12; though it is required to step up the transfer of

rate of 8%, while supplying reliable and quality power at optimum costs, to make the power industry commercially viable and provide ‘Power for All’.

Though there has been improvement in the power sector, the growth in demand for electricity has surpassed the generation of electricity, resulting in the continued shortage of power. In the 11th

power from surplus to deficit regions. The Government also formulated schemes for the renovation and modernisation of existing Power Plants for efficient power generation and transmission - a restructured Acceler-

Five Year Plan (2007-2012) a capacity addition target of 78,700 MW has been proposed to meet the present shortages and the growing demand in the country. Capacity addition projects of around 12,000 MW have already been commissioned and projects totalling 66,000 MW

ated Power Development and Reforms Programme had been undertaken for bringing down the aggregate technical and commercial losses of transmission and distribution utilities below 15 percent. In addition, various energy efficiency and conservation measures

♦ Power Generation Strategy with focus

are under different stages of execution. This Five Year Plan is also seeing growth in the involvement of the private sector;

have been initiated such as the Energy Conservation Building Code and Bachat Lamp Yojana.

♦ Transmission Strategy with focus on

To achieve these aforementioned objectives, the Power Ministry had planned the following strategically layered approach:

on low cost generation, optimisation of capacity utilisation, controlling the input cost, optimisation of fuel mix, technology up-gradation and utilisation of non conventional energy sources

development of National Grid including Interstate connections, Technology up-

March 2010

the Power Ministry has now set a target of adding 13,000 MW of electricity annually for the next three years, it appears to be a tall order given the slow movement of the new projects.

Private Sector Support Though the government has managed to award four 4,000 MW Ultra Mega Power Projects to private developers, none of these are actually part of the 11th Five-Year Plan (2007-12). Ironically, work on these UMPPs is progressing well enough to actually get completed ahead of schedule; and fortunately for the

gradation & optimisation of transmission cost

♦ Distribution Strategy to achieve Distribution Reforms with focus on System up-gradation, loss reduction, theft control, consumer service orientation, quality power supply commercialisation, decentralized distributed generation and supply for rural areas

♦ Regulation Strategy aimed at protecting Consumer interests and making the sector commercially viable

♦ Financing Strategy to generate resources for required growth of the power sector

♦ Conservation Strategy to optimise the utilisation of electricity with focus on Demand Side management, Load management and Technology upgradation to provide energy efficient equipment

♦ Communication Strategy for political consensus with media support to enhance the general public awareness

The hope was that over the 11th Plan (ending 2011-12), India would be

Power Sector, these UMPPs might be able to provide some needed capacity addition for the 11th Plan. The construction work on two of the

successful in adding 78,000 MW of capacity and the 12th Plan (2012-17) was targeting capacity additions of another 100,000 MW. Although the country hopes to achieve 78,000 MW in new generation capacity in the five years

UMPPs so far awarded has begun. Reliance Power which won three of the projects has commenced work on Sasan UMPP in Madhya Pradesh and Tata Power is executing the Mundra project in Gujarat - this project is likely to be

ending 2012, the speed with which things are moving now make this target look unattainable.

completed in 2012, two years ahead of its deadline. Tata Power’s 4,000 MW ultra mega

The country was producing an estimated 1,55,900 MW of power by the end of 2009, but the real picture of lagging capacity addition comes into play when the performance of the previous year is highlighted; the power sector was to add around 11,000 MW in the fiscal year 2009, but it managed to add only 3,500 MW. The government has time and again said it would be able to add about 68,000-70,000 MW during the current plan period and has also tried reassuring that with some effort, the goal of 78,000 MW can be achieved. And even though

power project coming up at Mundra is hopeful of starting generation by 2012, two years ahead of schedule. According to the bidding requirements, the project’s first unit was to go on-stream in 2014. For the first 800 MW unit, 83 per cent of the work for raising the structure for boiler and turbine as well as the deck for turbines and generators has been completed. In case of the second unit, 78 per cent of the work for boilers is complete and work on three other units is progressing. A new coal jetty, 400 KV evacuation lines and construction works for coal and ash handling are also progressing. March 2010

Apart from Mundra - the Rs.17,000 crore project that will supply Gujarat 1,805 MW, Maharashtra 760 MW, Punjab 475 MW, Haryana 380 MW and Rajasthan 380 MW of power, Tata Power is also developing 5,170 MW thermal

government admitted that the country’s power sector is suffering from a shortfall in investment of more than Rs.5 lakh crore. In the current scenario, when India requires a multi-fold increase in electricity generation capacity to sustain

projects and 98 MW wind energy projects. Currently, Tata Power has 2,786 MW installed capacity.

the hoped 8 per cent Gross Domestic Product (GDP) annual growth rate over the next two decades, the insufficiency in investments becomes a major roadblock in the power sector’s path to ‘Power for All’.

The 4,000 MW Sasan UMPP, developed by Reliance Power, is also set to be commissioned ahead of schedule. The commissioning of its first unit was advanced by 16 months to December 2011, as against the original date of May

At the recently held annual power sector conference - ‘India Electricity 2009’, Bharat Singh Solanki – Union

The minister also suggested bringing the external commercial borrowing by financial institutions like Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) under the automatic route. To add to the disappointments, the government also made it clear that only 78 per cent of the 11th Plan period’s capacity addition target of 78,700 MW will be possible. “We are optimistic that we will be adding 62,000 MW in this plan,” said Union Power Secretary Hari Shankar Brahma, also present at India Electricity

Though the government has managed to award four 4,000 MW Ultra Mega Power Projects to private developers, none of these are actually part of the 11th Plan. Ironically, work on these UMPPs is progressing well enough to actually get completed ahead of schedule enabling some added relief to capacity.

2013. The second unit will come after three months in March 2012. Main plant construction activities are in full swing and significant progress has been made

Minister for Power had revealed this major financial deficit. “As per latest estimates, this is the gap in financing of capacity addition projects,” he said.

on coal mine development. The government plans to award eight or nine UMPPs in all, of which Reliance Power is executing Sasan, Krishnapatanam and Tilaya projects.

Solanki added that timely achievement of financial closure for projects requires increasing the exposure limit of banks, Foreign Institutional Investors

Government’s Financial Predicament To add on to the already existing burden of slack capacity additions, the

and Non-Banking Finance Companies and said, “The limit should be increased from 20 per cent to 30 per cent for individual borrowers and from 50 per cent to 70 per cent for group borrowers.”

2009. So far, only around 17,000 MW of the target has been met in the current Plan period, which ends in March 2012.

Challenges to Meet The challenges being faced by the power sector are huge both in terms of numbers and magnitude. By 2012, the ‘Power for All’ agenda of the government envisages an installed capacity of nearly 200,000 MW, which still seems like a Herculean task judging by the pace of infrastructure development and second generation reforms.

March 2010

Slack capacity addition continues to be a serious worry as it results in jeopardising infrastructure development as well as economic growth. Thermal energy being the mainstay of the power sector, the biggest drawback against achieving targeted capacity additions is the lack of availability of coal for large thermal power plants. Given the existing deficit in coal, public sector companies such as NTPC Ltd are importing it through high expenses. Other obstacles include defaults by customers, the electricity boards and the mounting pressure on thermal power projects due to carbon emissions. For increasing the availability of electricity, India has adopted a blend of thermal, hydro and nuclear power sources.

♦ Inadequate inter-regional transmission links

♦ Defective and ageing sub-transmission and distribution network

Out of these, coal based thermal power plants and in some regions, hydropower plants, have been the mainstay of electricity generation.

♦ Transmission & Distribution losses ♦ Large scale electricity theft and distorted tariff structure

Oil, natural gas and nuclear power account for a small proportion. In recent times, the emphasis is also being laid on non-conventional energy sources - solar,

♦ Lagging pace of rural electrification

wind and tidal; but the progress on nonconventional sources of energy is very small.

S.S. Rao, Joint MD & CEO of JSW Energy Ltd, opined “The Government’s target of Power for All by the year 2012 can be achieved provided following are adequately planned and ensured availability of fuel specially coal and gas;

Overall, the country faces many challenges, which have existed over decades, in setting up a reliable and efficient power network. The main challenges for the power sector in meeting its promise are:

♦ Insufficient power generation capacity ♦ Lack of optimum utilisation of existing generation capacity

♦ Inefficient use of electricity by the end consumer

implementation of all provisions of Electricity Act 2003; open access for uninterrupted sale of power from surplus states to deficit states; upfront implementation of national grid matching with the generation capacity; and

Dr. Ajay Mathur, Director General of the Bureau of Energy Efficiency stated, “The primary challenges being faced by India’s energy sector are coal depletion and pollution; oil consumption and rising oil imports; demands for natural gas and foreign dependency; very limited access to nuclear energy; and inefficient electric systems resulting in at least 30 percent loss of power.” Due to these existing challenges there has been continuous underachieving of targets through the previous Five Year Plans and capacity addition has not been able to keep pace with the growing demand. This is the reason why the country faces such a severe power shortage today. The Eleventh and Twelfth Plans seem to try to make up the shortfall to a certain extent, but the country is still far from becoming an energy surplus nation.

privatisation of distribution.”

March 2010

MEETING THE VISION OF ‘POWER FOR ALL’ BY 2012 Enabling Speedy Capacity Addition in Power Sector . A report by KPMG in India and CII. Power is a critical infrastructure in today’s time and over the past few years, the Government of India has strived hard to meet the demand for this basic requirement of its people. Post the Electricity Act, 2003, which provided an enabling framework for accelerated and more efficient development of the sector – significant reforms have been witnessed till date. Section 3(1) of the Electricity Act, 2003, required the Central Government to formulate the National Electricity Policy (NEP), in consultation with other stakeholders. Accordingly, the NEP was released in February 2005, and aimed at providing ‘power for all by 2012’ – an ambitious target given the state of the sector and the utilities operating at that time. Today, after years of reforms in the power sector the country is still far behind its ambitious goals – with over 1 lakh villages (Progress report on Village Electrification as on 30-06-2009, Ministry of Power website) still not having electricity connection and the peak load deficit at 13,124 MW (on an all India basis for FY 2008-09 – CEA Report, Power Scenario at a Glance, July 2009). Thus, this is the time to analyse the key issues and the measures and steps required so as to achieve the vision of ‘Power for All by 2012’. 12

March 2010

ey current and potential future issues/ bottlenecks of the various segments of the sector have been identified and analysed below.

Generation Peak load capacity deficit The energy and peak power deficit in the country has been estimated at close to eleven percent and fourteen percent respectively, with Northern and Western Regions witnessing even higher deficits. Inability to meet peak-load demand has led to prolonged hours of loadshedding faced by the consumers and procurement of power from short-term markets at very high rates (nearly INR 7 [As per CERC, weighted average price of short-term transaction of electricity was 7.31 in FY 2008-09] per Kwh) by the utilities during these periods. The government focus on additional generation capacity development has resulted in many private players setting up base power plants indicating essentially the persistence of peak load deficit going forward. As per KPMG in India’s analysis related to projection of generation capacity addition under various scenarios and considering 16th EPS figures for energy and peak demand, it is anticipated that while the off-peak deficit situation is expected to ease to a fair extent and could potentially even become supply adequate; peak deficits may continue going forward. This analysis essentially highlights the need for adequate focus on peaking capacity creation and promotion of optimal mix of generation capacity between base-load and peaking plants including a favorable hydro-thermal plant mix.

♦ State and Central Government need

Some of the key areas requiring focus for promotion of hydropower generation are:

♦ Different states follow different criteria (Various parameters such as upfront equity, share of free power, cash-less equity stake in the project, competitive bidding are key criteria for award of hydro power) to award hydro projects adding to confusion and delay in hydro capacity development. Hence, a transparent national level guideline/ policy is required for uniformity in awarding of hydro power generation projects.

♦ Land acquisition has been one of the key bottlenecks in the development of power projects. State Governments need to develop equitable Rehabilitation & Resettlement (R&R) policy and provide support for transparent implementation of the R&R package.

♦ Normally it takes 1 – 1.5 years to secure the environment and forest clearance for the project, hence definite time-lines need to be specified for providing different clearances from State and Central Government departments.

Region

to focus on development of integrated organized database of geological information of different prospective hydro power generation sites. It should help reduce the chances of geological surprises and time period for project development.

♦ As hydro power generation projects usually have large development period and take 4-7 years of construction period, there is a need for development of debt market enabling lending for long-term generation projects. It should promote more investments into hydro power generation. Equipment supply According to the CEA data (CEA website; www.cea.nic.in; Project Monitoring section), against the target of 78,700 MW, only 12,717 MW has been commissioned in the XIth plan period (FY 2008-12 - Thermal: 8105 MW; Hydro: 3393 MW and Nuclear: 220 MW; Source: CEA) so far. One of the key reasons for delay is due to longer delivery time of plant equipments by the suppliers. As per CEA (CEA website; www.cea.nic.in; Project Monitoring section), of the 67, 293 MW generation capacity under

Energy (MU)

Deficit (%)

Peak

Deficit (%)

Requirement

Demand (MW)

Northern

24,369

-13.6

35,932

-15.7

Western

20,990

-12.6

35,503

-19.6

Southern

18,465

-6.4

28,387

-8.4

Eastern

8,091

-6.5

12,829

-7.0

844

-12.9

1,760

-22.2

72,759

-10.7

114,412

-14.2

North Eastern

Source: CEA Generation Monthly Report, Aug 2009

March 2010

construction; EPC and BoP related factors accounted for majority of delay in project implementation. BHEL, key supplier of power equipments in the domestic market, has capacity to produce only 10,000 MW each year (Though it is

suitability of these equipments in the Indian environment. Generation project developers need to identify the equipment supplier considering not only the competitiveness of the price offered but also the reliability of delivery and quality

planning to ramp its capacity to 15,000 MW by end of 2009 – BHEL financial statement for FY 08-09). The company order-book to turnover ratio of greater than 4 for FY 2008-09 indicates long time period for delivery of generation plant equipment by this supplier.

assurance of the equipments supplied.

Many private players have also entered into equipment manufacturing space in joint ventures with foreign players for technology inputs. Such capacity addition needs to be encouraged through favorable policies to meet the growing demand from the power sector. Apart from costs (As per KPMG in India’s analysis Chinese equipment supplies are 10-20 percent cheaper than Indian Manufacturers), the time-frame for additional manufacturing capacity commissioning and impending huge order book size are some of the key reasons for various project developers to look at import of equipments from countries such as China, Korea etc. Of forty-three supercritical units bought by Indian companies so far, orders for only four have been placed with Indian companies. Chinese companies have bagged orders for twenty six boiler–turbine– generation sets (BTG). Koreans managed eight, while three went to Russian companies and two to Italian firms (Internet search from financial chronicle news article). However, there have been some concerns raised relating to

However, the framework for such fuel allocation is yet to be notified and this uncertainty is causing delays in plans for new capacities. Improvement in mining efficiency The demand for coal has been increasing at the rate of 8-9 percent per

Maximum Inter Regional Transmission Requirement (2014-15) Region

Requirement

Scenario

Northern

13500 Import

Winter peak

Western

11000 Import

Summer peak

Southern

4000 Import

Winter/Summer peak

Eastern

25000 Export

Winter peak

(23000 MW - Own Gen. + 2000 from NER North-eastern

4000 Export

Monsoon peak

Source: CEA website Additionally, developers need to setup formal teams for identifying in advance any likely delays in the supply of the main and BoP plant equipments from the equipment supplier(s) and initiating appropriate mitigation mechanisms for the same.

Issues in fuel supply Transparent and speedy process for coal allocation The Ministry of Power (MoP) in order to facilitate capacity addition through Merchant Power Plants (MPPs), has been coordinating with the Ministry of Coal to identify coal linkages (for 1000 MW plant) and coal blocks (for 500 - 1000 MW plant) for allotment to such plants (Ministry of Power website; R.V. Shahi paper on “India’s strategy toward energy development and energy security”).

year (Infrastructure Today magazine, August 2009) while Coal India limited production has grown at the CAGR of 5.7 percent over the last 5 years (Coal India Limited website). In order to increase its production, Coal India should need to invest in new technologies (for both under-ground and open cast mining), process improvements for planning and execution of projects, and institutionalize a comprehensive risk management framework with a plan to match international productivity levels. As a step in that direction CIL should look at technology transfer arrangements through mechanisms such as joint ventures with technically advanced mining players for coal mining. The organization should also encourage competition among its various subsidiaries for efficient production and provide

March 2010

them support for introduction of newer technologies. Fuel transportation The failure of transportation infrastructure to keep pace with growth in coal production has been causing problems in timely supply of coal to generating stations. According to the internal assessment by Coal India Limited, lack of freight corridors and feeder routes has hindered transport logistics (Business Standard article “Coal India blames infrastructure for supply problems” January 2008). Delays are created because freight trains get a lower priority than passenger trains. Additionally, supply of coal during the fair-weather period of November to March to power stations has been a problem as railway wagons during this period were mostly used to ship fertiliser for Kharif and Rabi crops. Since last couple of years, substantial generation capacity has been planned based on imported coal hence transportation infrastructure for the same needs to be developed in a timely manner. In order to increase freight capacity from the coal-producing regions (central and eastern India) to the demand centers in the northern and central parts of the country, it is necessary that Indian Railways augment capacity. Special freight corridors are required to enhance speeds, cut costs, and increase the system’s reliability. In order to cater to prospective increasing supply of imported coal, State and Central Governments need to work together to identify potential projects for green-field and brown field port capacity development including the evacuation infrastructure at key locations along the eastern and western coasts.

Transmission

selected to execute WRSS project. Source: Ministry of Power website)

Uncertainties in availability of transmission system capacities had been a concern for some of the Merchant Power Plants who are not sure of their customers. Significant portion of new capacity is coming in the coal belt states

Government of India needs to continue to take steps to speed up the process of augmenting the transmission network in India. The MoP has now

while the demand centers are in the Northern and Western regions of the country. According to the PGCIL, planned incremental inter-regional power transfer capacity will be 19,000 MW by 2012 (Total inter-regional power transfer capacity of the PGCIL has gone up to 18,700 MW as on Dec2008 and PGCIL plans to increase the national grid capacity to 37,000 MW by end of 11th plan (Source:www.projectsmonitor.com). Building this out in a timely manner is critical for the power market to function effectively. Till date only two projects have been awarded to the private developers (Tala transmission project was awarded to Tata Power and REL was

issued draft Standard Bid Documents for selection of Transmission Service Provider. The MoP has also notified Power Finance Corporation and Rural Electrification Corporation to act as the Bid Process Coordinators to undertake bidding for few identified projects. Project implementation delays Key milestones like statutory State Cross-subsidy Surcharge Maharashtra

Rs.0.00/kWh

Delhi *

Rs.0.00/kWh

Gujarat

Rs.0.37/kWh

Source: Open-access orders of State ERC’s. * - Only for Domestic category consumers

March 2010

clearances, land acquisition/”Right of Way”, EPC selection & order and project commissioning of integrated projects need to be monitored closely at the centralized level and any bottleneck should be resolved with active assistance from central monitoring authority. Recent reports suggesting Ministry of Power (MoP) has constituted a group of ex-Power secretaries to monitor progress of power projects, is a step in the right direction. Use of better technology for efficient project implementation Securing “Right of way” has been a key issue in transmission project implementation. Use of better technologies such as third generation technologies (FACTS–Flexible AC Transmission Systems) and new conductor technologies can help in achieving higher power transfer capabilities across the same Rights of Way (RoW). These technologies should be seriously explored by Indian power Transmission companies.

Distribution Open-access as an enabler for capacity creation Open Access implies that a buyer can choose his own supplier and vice versa and the buyers and suppliers would be entitled to the non-discriminatory use of transmission lines or distribution system for transferring power from generation to consumption points. Freedom and ease of getting open access down to the retail consumer level is a significant step towards moving to a fully competitive power market and this is expected to ultimately facilitate generation capacity addition. Today, merchant power developers have to depend largely on tenders issued by state utilities through

the Case 1 route to tie up capacities through long-term contracts. This is essential for them to get comfort of minimum off-take and achieve financial closure.

sooner. Generators and power players may do well through active planning to develop their capabilities and strengthening their presence in this area as the retail supply segment begins to open up.

However, if the retail segment were to open up, then access to large customers would have provided an alternate option for tie-up on medium to long-term basis.

Once we overcome the supply deficit and retail competition establishes in its true sense; i.e. freedom of choice, availability of products and information symmetry among consumers; the

Merchant developers could then be proactive in identifying buyers to make their projects viable rather than wait for tenders to be floated and procurement processes to be completed for setting up power projects. This may speed up capacity addition. Most of the SERCs had fixed a timeline of end 2008 for opening up the distribution open access for consumers with connected load of less than 1 MW. Further, taking cues from the National Tariff Policy, a few state regulators have passed orders for reduction of crosssubsidy surcharge in the recent past. This is expected to promote open access as reduction in cross-subsidies will help maintain the attractiveness of a cheaper power source. Few regulators like the Maharashtra State Electricity Regulatory Commission have kept a zero level of cross-subsidy surcharge (Maharashtra Electricity Regulatory Commission website; OpenAccess Tariff Order) so as to promote competition. While the retail market represents a miniscule proportion of the power market currently, this is expected to increase going forward. As the demand-supply gap begins to narrow down, competitive advantage may begin to shift towards access to customers. In some states, this is likely to happen

inflection point is expected to be reached. A well functioning power market can also go a long way in helping ensure that the prolonged history of power deficit in the country will not repeat itself in future. Progress in open-access implementation is expected to boost investment in generation, transmission and distribution capacity development. Following initiatives/ focus areas may assist de-bottleneck open-access progress: Implementation level initiatives:

♦ Delay in decision with respect to open-access application: There have been numerous instances of STU/ Distribution utilities taking inordinate time in according approval or rejection to the applications received for openaccess. Absence of accountability being fixed by the regulator and strict compliance of the same allows concerned authorities to delay openaccess implementation.

♦ Notification of Intra-state ABT by state regulators: Intra-state ABT helps ensure efficient energy balancing and settlement mechanism necessary to facilitate open access transactions. As per the compilation made by the Forum of Regulators (FoR), only 8 states have notified intra-state ABT March 2010

(Forum of Regulators’ Status Report on “Issues Pertaining To Tariff Policy”, 2007-08). Lack of credible balancing and settlement mechanism at the state level acts as a bottleneck for implementation of open-access.

♦ Availability of sufficient transmission capacity: The peak demand (in MW) is expected to reach a level of 1,52,746 MW by 2011-12 (www.cea.nic.in; Demand as per 17th EPS) from the

♦ The optimal phasing and roll-out of the infrastructure plan and

♦ Choice of the right execution methods Unfortunately, there seems to be a serious lack of focus on this area among the utilities, if one goes by the extent and level of resources assigned to this important task. Clearly, the need of the hour is to give this activity the highest focus. It would be worthwhile to remember that over 80 percent of the

Such an agency will also look at how the projects could be executed in the most efficient manner whether through private participation route or state utility route. This would mean building significant capability within the designated agency to carry out this task. Adequate resourcing, imparting the right skills and setting up the planning processes for such an agency are necessary. The role

A well functioning power market can also go a long way in helping ensure that the prolonged history of power deficit in the country will not repeat itself in future. Progress in open-access implementation is expected to boost investment in generation, transmission and distribution capacity development.

current level of 1,09,809 MW at the end of FY 2008-09. Given that open access is critically dependent on the availability of transmission capacity both inter-region and within region, Central and State Governments need to plan and implement required transmission capacity addition in a timely manner. Enhance planning and contracting efficiencies Efficiency in planning is at the core of a successful timely and cost-effective infrastructure build-out. Planning has various elements to it:

♦ Designing of the right technical solution

power infrastructure that will exist twenty years hence is yet to be built and efficient planning today will help us achieve that in an efficient way (KPMG in India’s Power Summit 2009: Meeting the Goal of Power for All) State utilities will do well to have a state level agency dedicated with the task of holistic planning at the state level. This should include planning related to fuel mix, generation location, transmission system and even choice of technology related to these areas. Also, important is to bring the element of environmental sustainability as an integral part of the planning process.

of STU may be enhanced to play this important role. The other significant bottleneck is the time taken to tender and award contracts. This applies both for projects to be executed through the PPP route or self developed projects by the utilities. A clear strategy to improve efficiency of the tendering and contracting process is urgently required. Utilities will do well to apply their attention to this important area and look at innovations and procedures to expedite this.

March 2010

Rural Electrification

CHALLENGES GALORE, BUT HOPE LIVES ON

Rural electrification is an integral component of poverty alleviation and rural growth of a nation. A developing nation like India has 72.2 percent people living in rural areas. Still, electricity has not played an effective role in the socioeconomic growth of villages. Worldwide more than 3.6 billion people do not have access to electricity, of which 83 % live in rural areas. In India, over 63 percent of rural households in the country are still lurking in darkness having no access to basic electric power. There is a shortfall of about 15-20,000 MW of electricity in the country and we require about 140,000 MW of additional capacity by the end of 2010 with an estimated outlay of Rs. 5,50,000 crores.

March 2010

o sustain the rise in the economic graph of India, the best suitable option left with the country is to energize its rural base. Considering the future and the present energy circumstances the need of the hour is to revamp and build a comprehensive rural electrification structure that will last for a longer period. Realizing the importance of rural electrification, the Government of India had taken various steps towards this end. Among these, the recently launched RGGVY (Rajiv Gandhi Gramin Vidyutikaran Yojana) is one such significant programme which is intended to provide ‘Power for all by 2012’. According to P. Umashankar, CMD of Rural Electrification Corporation Limited, the vastness of the country is a major hurdle in providing power to all villages. “But it is not an impossible task. If the difficulties are differentiated in a systematic manner and if each problem is solved independently and integrated together over a larger scale, very soon the dream of electrifying the entire rural gamut will be realized with triumphant success,“ he said.

At the time of independence there were 15,000 villages of which only 0.3 percent was electrified. Today, the number of villages have risen to approximately 6,40,000 till 200809, of which more than 60 percent are un-electrified. Some states had achieved 100% electrification in 1987 while others were at the 30%-44% level. Rural electrification programmes suffered from various shortcomings: large farmers are the main beneficiaries; there is slow progress in domestic and street lighting programmes; small farmers are constrained in their lack of access to credit. “Rural Electrification brings electric power to farms, thereby raising the standard of rural living and slows down the migration of farm workers to cities. The imminent need is efficient power supply round-the-clock to agriculture, industrial and housing sectors. Feeder bifurcation programme will improve the efficient distribution of power with uniformity. The feeders bifurcation system would definitely enable 24 hour power supply in the future, and we have already taken up this

It is then understood that the obvious requirement is the need of staunch will power on the part of people, the authorities and bureaucrats along with the availability of gigantic magnitude of resources in terms of funds,

program on pilot basis in Andhra Pradesh and based on its success we shall gradually extend it to the other parts of the state“ said, Ajay Jain, CMD APTransco.

infrastructure, equipment and human resources that are needed for planning, construction, manufacturing and installation of power generation and power transmission projects in the country.

Government Plans

The Government of India had set an ambitious target of providing electricity to all villages by 2010 and all rural households by 2012.

Under this National Electricity policy (NEP), the government is aiming to achieve a per capita consumption of 1,000 Kwh by the end of 11th plan, by adding a capacity of over 1,00,000 MW. Steps have already been initiated with Rural Electric Corporation, Power Finance Corporation, Rural Electricity Supply Technology Mission; State Electricity Boards led reforms, Reforms in Power Sector, Electricity Act 2003, etc. Umashakar says, “As on September 30, 2009, under RGGVY the Ministry of Power has sanctioned 567 projects involving electrification of 118,499 unelectrified villages, intensive electrification of 354,669 already electrified villages and providing electricity connections to 246 lakh eligible ‘below poverty line’ (BPL) households. Cumulatively, works in 165,206 villages (67,607 un-electrified and 97,599 electrified villages) have been completed under RGGVY up to December 31, 2009. Connections to 83.87 lakh ‘below poverty line’ households have been released under the scheme up to December 31, 2009.”

Finance Another giant corporation, PFCL (Power Finance Corporation Limited) had contributed its valuable financial services to enhance the power sector in the country. It has provided finance to a number of power generation and transmission projects in the country. “We are all aware that the demand for power has consistently outstripped

March 2010

the supply. In order to bridge this demand – supply gap, we require a massive investment of over Rs.10, 00000 crore during the 11th plan period including establishment of requisite transmission and distribution system,” said V.K.Garg, CMD PFCL. During the financial year 2008-09, Government of India had announced setting up of a ‘National Fund as an investment thrust for Transmission and Distribution Reform’ in the Budget. “The proposed fund is expected to facilitate higher inflow of investment for strengthening and augmenting the T&D network commensurate with the capacity addition programme and also targets T&D loss reduction by providing grants on achievement of loss reduction, thus benefiting the ultimate consumer in terms of reliable and quality power” cited Garg.

Initiatives The initiatives of the Government of India for adding the requisite capacity have already started yielding the desired results. A testimony to this is the commissioning of over 9,250 MW capacity during the 1st year of the XIth Plan period, compared to about 21,000 MW commissioned during all the 5 years of Xth plan.

USAID & GE’s Role Rural electrification project is not only the concern of Government agencies. It has also been shared by the Private Partners, Agencies and NGOs. Earlier in 2009, USAID and GE announced a partnership to increase access to cleaner and more affordable energy services in rural India. USAID plans to contribute $600,000 to this program, while GE and its worldwide network of experts, technology centers and partners will invest up to $2.7 million in direct and indirect funding. In addition to the joint program with USAID, GE has pledged to support the “Power to All by 2012” and “Rural Electrification/Rural Business Hub” initiatives that have been launched by the Indian government. The GE Rural Electrification Program for India will incorporate a number of renewable energy natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. These technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. Through the GE Rural Electrification Program, GE Energy has signed a contract with Malavalli Power Plant Private Limited (MPPL) to provide 30 Jenbacher JMS320 engines, which will be used to generate combined heat and power to meet electrical, refrigeration and heating needs within rural communities.

In addition, over 66,000 MW is already under construction and will be supplemented by about 28,000MW from renewable energy sources and captive power plants. The above capacity addition programme excludes capacity addition of 12,000 MW through UMPPs which has already been awarded and necessary work is under progress for their commissioning in a phased manner in the initial years of XII Plan. 20

GE Energy will deploy a variety of power generation technologies to support the India rural electrification effort. While GE’s primary focus in India in the past has been on gas turbines and gas engines, the company also believes there is tremendous potential within this program for furthering energy independence of communities through the use of solar and wind power. For the Rural Electrification Program, the GE Global Research Center in Bangalore has developed an integrated hybrid technology model, which combines various forms of renewable energy and provides customized power solutions based on availability of local fuel resources.

March 2010

“DURING HALF YEARLY PERIOD OF CURRENT FY 200910, POWERGRID ACHIEVED A TURNOVER & NET PROFIT OF RS. 3,646 CRORE AND RS. 1,007 CRORE” Powergrid has always exceeded the targets set under Memorandum of Understanding (MoU) with ministry of power since signing of its first MoU in 1993-94 and has consistently achieved “excellent” rating. The company has been conferred with the prestigious ‘MoU Excellence Award’ consecutively for 2006-07 & 2007-08, by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises for being the top performer in the energy sector. In fact, Powergrid has received this prestigious ‘MoU excellence award’ on total eight occasions, and continuously for last five years in a row, which is an outstanding achievement.

March 2010

ower Grid Corporation of India Ltd. (POWERGRID) was incorpo rated as a Government of India enterprise on 23 October, 1989 under the Companies Act, 1956 with the mission of the corporation as “Establish-

various transmission projects and enhanced its network to about 73,950 Circuit Kms, 124 sub-stations and transformation capacity of about 82,100 MVA (as on December 31, 2009), which was only 22,220 circuit kms and 42

ment and Operation of Regional and National Power Grids to facilitate transfer of electric power within and across the regions with reliability, security and economy on sound commercial principles”. POWERGRID is

substations with transformation capacity of 12,200 MVA in 1992-93. The Company has been able to display its capability by consistently maintaining the availability of this gigantic transmission network over 99%, comparable with the best

revenue realization has been 100% of payable dues. “In fact, during FY 2008-09 also, POWERGRID displayed an outstanding financial performance with a turnover of about Rs. 7,029 Crore and Net Profit of Rs. 1,691 Crore as compared to Rs. 5,082 Crore and Rs. 1,448 Crore respectively during FY 2007-08, an increase of 38% and 17% respectively. Looking at the wonderful financial numbers, all I can say here is that our performance is exceed-

“As the head of the organization, my job is to ensure that POWERGRID not only achieves the annual targets committed to Government of India and maintain its growth momentum but also contribute for overall development of Indian power sector. Accordingly, I am making all out efforts towards ensuring availability of resources to our employees for achieving the goals.” - S. K. Chaturvedi, CMD, POWERGRID

certified with Integrated Management System (IMS) as per Publicly Available Specification, PAS 99:2006 integrating requirement of ISO 9001:2000 (Quality),

international standards. POWERGRID wheels about 45% of total power generated in the country through its transmission network,“ said S. K.

ISO 14001:2004 (Environment) and OHSAS 18001:2007 (Occupational Health & Safety Management System). POWERGRID has also been audited for Social Accountability System, SA 8000:2008 for all its establishments.

Chaturvedi, CMD, POWERGRID.

During FY 2008-09, with accreditation of ISO 9001:2000 for all Regional Load Dispatch Centres (RLDCs), the Quality Management System (QMS) certification for all establishments of POWERGRID is now complete. “POWERGRID has implemented

Financials The Company displayed spectacular performance during half yearly period of current FY 2009-10, beating all the expectations, achieving a Turnover & Net Profit of Rs. 3,646 Crore and Rs. 1,007 Crore, increase of 16% and 43% respectively as compared to same period of last year. Gross Asset base of the company has also been enhanced to Rs. 41,040 Crore at the end of Sep’09. The

ing the expectations and is in line with the strategy for achieving our objectives,“ said Chaturvedi. Keeping in view envisaged capacity addition during XI & XII Plan and projected 8-9% growth in Indian economy, the growth prospects in the transmission business are enormous for the next 10 years and POWERGRID is envisaging a steady growth for the company. “As the head of the organization, my job is to ensure that POWERGRID not only achieves the annual targets committed to Government of India and maintain its growth momentum but also contribute for overall development of

March 2010

38,000 ckm of transmission lines, 44 new sub-stations and transformation capacity of 67,000 MVA are under various stages of implementation. Besides, POWERGRID has commissioned National Load Despatch Centre (NLDC) at Delhi in February, 2009 for overall co-ordination of grid management at national level. NLDC is the apex body to ensure integrated operation of the national power system. Further, our consultancy assignment of construction of Transmission line from Pul-e-Khumri to Kabul in Afghanistan has been completed in Jan., 2009, within the schedule despite hostile working conditions

Indian power sector. Accordingly, I am making all out efforts for ensuring availability of resources to our employees for achieving the goals. Recognising the fact that employees are vital asset for achieving Company’s objectives, my priority is to ensure all round development of our dedicated workforce and prepare them for taking up enhanced responsibilities,“ said Chaturvedi.

Projects POWERGRID displayed excellent performance on project implementation front during FY 2008-09 commissioning about 4,642 ckm of transmission lines, 09 nos of new sub-stations and added transformation capacity of about 6,400 MVA. Transmission projects worth about Rs. 3,734 Crore were commissioned during the year. Major projects commissioned during FY 2008-09 include Transmission System associated with Kahalgaon-II (Phase-II), Sipat-I Transmission System, System Strengthening in South-West part of Northern

Grid, RAPP 5&6 Transmission System, Western Region System Strengthening Scheme–I and Western Region System Strengthening Scheme–III etc. During the year 2008-09, 26 new projects with an estimated cost of more than Rs. 40,000 Crore involving about 21,180 ckm of transmission lines and 19 no. sub-stations with transformation capacity of about 52,565 MVA and HVDC terminals of 6,000 MW were approved and taken up for implementation. Major projects include Transmission System associated with DVC and Maithon RB generation projects, Transmission System associated with Sasan & Mundra Ultra Mega Power Projects, North East– Northern/ Western Region Interconnector–I, etc. The Company is making all out efforts for completing the transmission elements identified to facilitate transfer of more power to Delhi on priority as a part of preparedness for Commonwealth Games 2010. At the end of March, 2009, transmission projects at a cost of about Rs. 62,000 Crore involving

(passing over Hindu Kush region at a height of 4000 mtrs above sea level, which is covered with snow for 9 months in a year).

Reach POWERGRID, at present, is operating about 74,000 ckt. kms of transmission lines and 124 Sub-stations, spread over the length and breadth of the country, while maintaining a system availability of over 99 % consistently. “Presently, the transmission company wheels about 4550 per cent of total power generated in the country through its vast transmission network. The Company has been contributing significantly towards development of power sector in India through continuous innovations in technical & managerial fields and by undertaking coordinated development of inter-State power transmission network along with effective and transparent operation of Regional and National Load Despatch Centers, despite working in tough terrains, hostile weather conditions etc. In a short span of only 17 years of commercial operations, the Company

March 2010

has grown by leaps and bounds and has carved a niche for itself amongst the largest transmission utilities in the world,“ said Chaturvedi.

Diversification India has now become the fastest growing telecom market in the world, and recently overtook China in terms of net subscriber additions in the last 18 months (10 million subscribers per

such as domestic leased lines, Internet Services, Multiprotocol Label Switching (MPLS) - Virtual Private Networks (VPNs) services (in association with partners). “Today all major telecom companies are our customers in addition to various other customers from the Govt. and private sector. In telecom business, the Company has earned revenue of about Rs. 150 Crore during FY 2008-09, growth of about 20% as compared to FY 2007-

Technology “Our goal is to be the world’s premier transmission utility and thus we are aiming for operational excellence surpassing efficiency benchmarks and regulatory targets. I am giving major thrust to our Research & Development activities for keeping abreast with the latest technology in the sector for efficient operation of its system and introducing new technologies for

During the year 2008-09, 26 new projects with an estimated cost of more than Rs. 40,000 Crore involving about 21,180 ckm of transmission lines and 19 no. sub-stations with transformation capacity of about 52,565 MVA and HVDC terminals of 6,000 MW were approved and taken up for implementation.

month vs. 8 million subscribers per month of China). POWERGRID could

08. Income from telecom business is expected to grow substantially in the

foresee the telecom potential way back in 1996-97 and diversified into Telecom business for setting up of a country wide high speed state-of-the-art optical fiber network. Telecom business started in 2003 in right earnest after Govt. approval

coming years,“ said Chaturvedi. POWERGRID has lined up major expansion plans for its telecom network, which include further diversification into value added services such as MPLS-VPN, NLD Switched Voice, Data Centres and

and today POWERGRID’s telecom network spans almost 21,000 kms and covers more than 100 cities across the country and is still growing.

the Tower Infra business. With the focus now shifting from urban to rural connectivity, POWERGRID’s role in telecom becomes even more significant as it has presence in all rural/remote areas of the country by way of its Power Transmission network which can be

POWERGRID holds National Long Distance (NLD), Infrastructure Provider Category-I (IP-I) and Internet Service Provider (ISP) Category “A” licenses. POWERTEL (the telecom arm of POWERGRID) presently offers services

leveraged to provide telecom services in such areas by co-locating Wireless Antennas on Power Towers.

effectively meeting the challenges of power transmission in India. With its strong technical expertise, POWERGRID is today rated as the 3rd largest transmission utility in the world as per The World Bank,“ said Chaturvedi.

New Initiatives POWERGRID has always given priority to new initiatives, which are mainly for optimization of cost of power transmission and for conservation of Right-of-Way (RoW). Towards this, various new technologies have been adopted suiting Indian power system such as Up-gradation of transmission lines on case to case basis, use of Thyristor Controlled Series Compensation, high temperature endurance

March 2010

POWERGRID has also formed a joint venture partner among NTPC, NHPC, POWERGRID and DVC for setting up “Online High Power Test Laboratory“ for various testing facilities including short circuit testing facility.

Investments planned & Future Plans To meet the increasing power demand, Government of India has planned generation capacity addition of 78,700 MW in XI Plan (2007-12) and envisages a generation addition of more

conductors, development of pole type tower structure for 400KV transmission lines, GPS/GIS based survey techniques, etc. Having established the ±500 kV HVDC and 765 kV UHV AC transmission technologies, POWERGRID is now working on next higher transmission voltages of 1200 kV UHVAC System and ±800 kV HVDC in the country to achieve efficient utilization of existing RoW and increased power transfer capability for transfer of bulk power over long

design of transmission line and substation equipment, Optimization of RoW & cost and ease in O&M etc. Implementation of ±800kV, 6000 Megawatt HVDC Bi-pole line from North Eastern Region to Northern Region (Agra) has already commenced. These technological initiatives are pioneering efforts even globally. “Apart from construction of transmission lines, their operation and maintenance also assumes significance when it comes to

distances etc.. In this direction, 1200 kV UHVAC Test Station along with a 1200kV test line is being established at Bina in Madhya Pradesh by POWERGRID, as a collaborative effort with equipment manufacturers, who will be able to field

providing reliable and secured power supply to consumers. We are deploying modern and state of the art technologies, at par with best international standards, for achieving high availability of our transmission network. Live line

test their indigenously developed 1200KV equipment on long term basis.

washing of insulators using helicopter was carried out during the last year for the first time in India on 12 critical lines in Northern Region. This contributed significantly in achieving safe, secure & reliable operation of Northern Grid during winter foggy weather conditions

Presently, designs and proto type testing of 1200 kV towers and most of the sub-station equipment have already been completed. Tower foundations & erection works are under progress. 1200 kV UHV AC shall lead to optimisation of

than 1,00,000 MW for XII Plan (2012-17). This capacity addition has to be coupled with matching expansion & strengthening of transmission and distribution systems to make available reliable & quality electric power. “For XI Plan, an investment of about Rs. 55,000 Crore is envisaged to be made by POWERGRID based on envisaged generation capacity addition in Central sector and other generation projects including Ultra Mega Power Projects (UMPPs) for which transmission system is required to be built by POWERGRID. Working towards this investment plan, POWERGRID Board of Directors have approved transmission projects costing about Rs. 40,000 Crore during FY 200809, which were taken up for implementation. During initial two years’ period of XI Plan, we have already made an investment of about Rs.15,000 Crore, achievement of about 27% of total plan size. For the current FY, a target of Rs. 10,500 Crore has been kept for POWERGRID. Balance we are planning in the next two years’ period of the XI plan,” said Chaturvedi.

last year,” said Chaturvedi. In addition,

March 2010

“JSW ENERGY HAS 995 MW OF OPERATIONAL POWER PLANT AND HAS EXECUTED PROJECTS OF 1225 MW” JSW Energy is one of the early entrants into the power trading business; it has been engaged in power trading since June 2006 and has the highest category of licence ‘F’ category. Today, JSW Energy has 995 MW of operational power plant and has executed projects of 1225 MW (including 230 MW group captive).

March 2010

SW Energy Ltd. (JSWEL) is a group company of Jindal South West (JSW) group headed by Sajjan Jindal. Other companies in JSW are JSW Steel Limited, Jindal South West Mining Limited, JSW Port, Jindal Praxair Oxygen

to Karnataka SEB under a PPA. This plant is able to generate substantial amount of carbon credits by use of Corex gas as a fuel. The 2x130 MW plant is in operation since 2000, since then we are a continuously profit making company. Our PAT

JSW Energy’s 260 MW Power Plant at Karnataka has received the National Award for Meritorious Performance for the fiscals 2007 and 2008 from Ministry of Power Government of India and the National Award for excellence in Thermal

Company Limited (JPOCL), and investment companies.

has grown from Rs 60.25 Crs in fiscal 2005 to Rs 276.69 Crs for fiscal 2009, at a CAGR of 46.39%. JSW Energy has realized its growth because it is an established Power Company with a track record, operational efficiency, industry experience and a deep understanding of

Generation by IEEMA and various other awards at state level.

JSWEL is the first Independent Power Producer (IPP) to be set up in the state of Karnataka. The company has set up 2 units of 130 MW each and both units are generating power using Corex

New initiatives ♦ JSW Energy has established State of Art Training Centre with 300 MW simulator

“Today, JSW Energy has 995 MW of operational power plant and has executed projects of 1225 MW (Including 230 MW group captive). JSW Energy is one of the early entrants into the Power Trading business, it has been engaged in Power Trading since June 2006 and has the highest category of licence ‘F’ category.”

- SS Rao, Joint Managing Director & CEO, JSW Energy

gas and coal. JSW Energy Limited was incorporated in 1994 with the objective to develop, construct and operate power plants. JSW Steel was setting up a mega steel plant at Toranagallu, district Bellary in Karnataka. Since steel is high energy intensive industry and requires uninterrupted supply, JSW decided to set-up their own power plant. At that time JSW Group did not have experience of setting up Independent power plants, hence it formed a Joint Venture with Tractebel of Belgium. “First, we took up 2x130 MW dual fuel fired (Coal and Corex gas) power plant for part supply of power to our steel plant and to sell the balance power

the power industry in India. Today, JSW Energy has 995 MW of operational power plant and has executed projects of 1225 MW (Including 230 MW group captive). JSW Energy is one of the early entrants into the Power Trading business, it has been engaged in Power Trading since June 2006 and has the highest category of licence ‘F’ category,” said SS Rao, Joint Managing Director & CEO. The average plant availability factor since year 2000 has been 96.62%. PLF in year 2009 was 97.88%. It has achieved continuous improvement in heat rate to 2321 K Cal/ Kwh and auxiliary consumption to 6.97%.

♦ JSW Energy has started Post Graduate Diploma Courses in Power Plant Engineering in academic collaboration with M.S. Ramaiah Institute of Technology – Bangalore.

♦ To part finance their ongoing ventures they had come out with IPO last year that has become successfully over subscribed and listed with premium.

Contribution JSW Energy’s contributions for India’s Power Sector are: Generation JSW Energy already has 995 MW of Operational Power Plant and it will be March 2010

Electrostatic precipitators which capture the particulate emissions from the effluent gases, high chimneys for wide dispersion of particulates as per environment regulations, JSW Energy is setting up most efficient power generation equipment to contain the Environmental Pollution. We also continuously monitor emissions and take timely corrective measures at our operating power plants,” said Rao. JSW Energy is using CFBC Technology Boilers for its Barmer Power Projects which is very efficient and environmental friendly technology to burn very low calorific value, high sulphur and high 3140 MW by April 2011 and 11,390 MW by September 2015. Transmission JSW Energy has formed a Joint Venture with Maharashtra State Electricity, Transmission Co. Ltd. It is the First Public Private Partnership in Transmission Sector in Maharashtra and it is installing two 400 KV double circuit (Quad conductor) transmission lines. Equipment manufacturing JSW Energy had formed a Joint Venture with world renowned Toshiba Corporation of Japan for manufacturing of Supercritical Steam Turbine Generator sets in India. The plant is being set up at Chennai near Ennore Port. Mining JSW Energy along with Mahanadi Coalfields Limited and two other companies have been allocated Utkal A – Gopal Prasad (West) West Coal Block in Orissa. Also, JSW Energy’s subsidiary Raj West Power Ltd. along with Rajasthan State Minerals and Mining Limited has been allocated Kapurdi and

Jallipa Lignite mines at Barmer in Rajasthan for captive supply of fuel to JSWEL’s 8x135 MW Power Plant at Barmer. Mining operations at both these mines will be undertaken by the Joint Ventures (JVs), JSW Energy is part of both these JVs. Trading JSW Energy through its hundred percent subsidiary JSW Power Trading Company is one of the top Power Traders in India since June 2006 and has traded more than 7 billion units so far. Training JSW Energy’s Centre of Excellence has been recognized by Central Electricity Authority (Government of India) for imparting Power Plant Training to their employees as well as for fresh engineers. Proximity of JSW Energy’s Centre of Excellence to their Power Plants enables it to train the engineers on different fuel, unit size and technologies. Technology “Besides, using highly efficient

moisture lignite. Location of its Power Plants is judiciously selected in coastal areas enabling use of imported coal which offers advantage of lesser emission and reduced ash generation. “For all our new power projects which are under development stage, JSW Energy will be introducing most efficient super critical technology for power generation which will further reduce the emissions to atmosphere. Our quality & environmental systems are certified to be in compliance under ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:2007,” said Rao. JSW Energy is also setting up an environment friendly Hydro Power Plant of 240 MW capacity at Himachal Pradesh. Besides, JSW Energy has been allocated 5 MW capacity for development of pollution free Solar Power Project by Government of Gujarat

Financials From 2006 to 2009 JSW Energy’s revenue has grown at a CAGR of 50%, EBITDA has been growing at CAGR of

March 2010

(Rs. Million) 2006

2007

2008

2009

H1 - FY

2010

Revenue

5,489

8,115

13,261

18,522

8,754

EBITDA

2,489

4,623

9,094

5,490

5,038

PAT

1,324

2,721

3,238

2,790

2,695

30% and PAT at a CAGR of 28%. JSW Energy has successfully put on commercial operation 995 MW of Power Plants ahead of the target dates. “We have set a target of 3140 MW of generation capacity by April 2011 and a target of 11,390 MW by September 2015. JSWEL is working towards becoming the top three full service integrated private power company in the country within the next three years with the presence across entire value chain,” said Rao.

efficient power equipment to JSW Energy at a reasonable price.

♦ JSW Energy has formed a joint venture with Maharashtra State Electricity Transmission Co. Ltd. for establishing two 400 KV double circuit (Quad conductor) transmission lines. This will enable JSW Energy to evacuate Power from its 4x300 MW Phase I and 4x800 MW Phase II Power Projects at Ratnagiri in Maharashtra.

♦ JSWEL has entered into a MoU with a large Japanese Power utility for joint development of Thermal and Hydro Power Projects in India and neighbouring countries. This will enable JSW Energy to introduce state-of-the-art technologies such as ultra supercritical power generation, dry type desulphurization, NOx reduction & development of pumped storage Hydro Power Plants.

♦ JSW Energy’s subsidiary Raj West Power Limited has formed a Joint Venture with Rajasthan State Mines and Minerals Limited to develop and operate the mines for supply of lignite to its 1080 MW power projects under construction at Barmer. JSW Energy has also formed a Joint

“For all our new power projects which are under development stage, JSW Energy will be introducing most efficient super critical technology for power generation which will further reduce the emissions to atmosphere. Our quality & environmental systems are certified to be in compliance under ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:2007”

MoUs & JVs ♦ JSW Energy has formed a Joint Venture with world renowned Toshiba Corporation of Japan for manufacturing of Super-Critical Steam Turbine Generator sets in India. As per this JV agreement, the JV Company will give preferred customer treatment to JSW Energy both for price and delivery. This will ensure timely supply of most

♦ The company has entered into a MoU with a European MNC for providing Engineering & Training Services in India for Nuclear Power Plants. This will enable JSW Energy to have exposure to Nuclear Power business and be ready to participate in Nuclear Power utility business as and when the law is amended to allow private sector participation in Nuclear Power.

Venture -MJSJ Limited with Mahanadi Coal Limited and two other private players for development of Utkal ‘A’ Gopala Prasad (West) Coal Block in Orissa for capacity of 15 MTPA open cast mining.

♦ MoM has been signed with a US MNC for exploring joint development of 100 MW Solar Power Projects. “With such joint ventures and

March 2010

strategic collaborations, JSWEL will get a firm foothold in other related areas of power generation and would emerge as full service integrated power company in the country,” said Rao.

Overseas Presence JSW Energy has signed a long term coal supply agreement with an Indonesian Company for supply of coal for its power plants. JSW Energy has also entered into a long term Fuel Supply Agreement with JSW Natural Resources Mozambique, a subsidiary of sister company JSW Steel Limited for supply of Coal for its Power Plants in India.

♦ Successful commissioning and commercial operation of first 135 MW unit at Barmer in Rajasthan. The first synchronization was done within a short span of 28 months for this Greenfield project which is located in very adverse climatic conditions. All the eight units of 135 MW at Barmer are expected to be commissioned by October 2010. The above achievements have given full confidence to JSW Energy to develop power generation capacity of 3140 MW by April 2011 and 11,390 MW by September 2015 besides becoming an end to end Power business company.

♦ 2 units of 135 MW at Barmer in Rajasthan in Phase II which will be commissioned by January 2013.

♦ At Kutehr in Himachal Pradesh, JSW Energy is setting up a 240 MW Hydro Project which will be commissioned by December 2015.

♦ 2x660 MW Super-Critical units at Chhattisgarh which will be commissioned by August 2014.

♦ At West Bengal, JSW Energy is setting up 2 units of 800 MW SuperCritical domestic coal based Thermal Power Plant which will be commissioned by February 2015.

♦ 2 units of 660 MW supercritical and 1

Besides, JSW Energy is exploring opportunities for setting up Hydro Power Projects in neighbouring countries like Bhutan, Nepal and Georgia.

Significant achievements ♦ Successful Commissioning and Commercial operation of 2x300 MW units at Karnataka. Full Load Operation was achieved within two to three months of first synchronization.

Following are the projects under pipeline to achieve targets:

♦ 4x300 MW imported Coal based power plant at Ratnagiri in Maharashtra, first unit of which will be commissioned by March 2010. All the 4 units are expected to be commissioned by Oct. 2010. At Ratnagiri, the company will be setting up 4x800 MW Super-Critical units in Phase II which will be commissioned by April 2015.

unit of 300 MW Sub-Critical domestic coal based power plant at Jharkhand which will be commissioned by August 2015. Thus by the year 2015, JSW Energy would become an integrated Power Player with a generation capacity of 11,390 MW.

March 2010

"THE PRESENT CAPACITY OF WEBSOL IS 40 MW WHICH WILL BE RAMPED UP TO 120MW BY 2011" Armed with strengths of customer focussed approach, speed and innovation, transparency in organisation, environment friendly approach in operations and regular investment in talent building, Websol Energy Systems Ltd is a success story in its specialisation of manufacturing Solar PV cells and modules.

March 2010

ormerly known as Webel SL energy Systems, Websol Energy Systems Ltd. was incorporated in 1990 and has been engaged in manufacturing Solar PV cells and Modules since 1994.

The Company was established as a 100% export enterprise through joint venture between SL Industries Pvt Ltd, Helios Technology SPA Italy and West Bengal Electronic Industry Development Corporation (WEBEL) with the vision: “To

Solar PV technology the country can generate enough electricity to address the growing domestic needs to achieve 8-9% growth rate in GDP,” he says. Solar Power is the Key for rural development since availability of electricity in rural and remote areas is very low. With installation off grid and decentralized systems in rural areas, the

Achievement Websol has picked up many awards and accolades in addition to international certifications making it one of the few technologically independent manufacturers of solar cells and modules in India. Webel Solar monocrystalline PV modules are manufactured to the strictest engineering guidelines to meet

“Presently we are manufacturing monocrystalline cells with 17% plus efficiency. We made number of improvements in manufacturing as per the technology advancement in industry and offered the best to our customers, and we believe that is one of the mantras of our success“ - S L Agarwal, founder and Managing Director, Websol

provide clean and dependable solar energy that will sustain the environment and improve global living standards.” The company started its operation with recycled wafers with 1 MW which was ramped up to 40 MW in 2009 with fresh wafers. According to S L Agarwal, founder and Managing Director, Websol, currently, India has about 700 MW solar modules manufacturing and about 500 MW solar cells manufacturing capacity. “Major share of this production is exported to Europe and USA. The total installation in India is about 3.1 MW grid connected systems and the estimated potential of solar PV is about 50 MW per Sq Kilometer. With proper utilization of

country can achieve the social and economic environment. Speaking about Websol and its significance in segment, Agarwal states that Solar PV industry is driven by technological development in terms of improvement in cell efficiency and automation in manufacturing, so when he started, the company attained 10% Solar cell efficiency in 1994. “Presently we are manufacturing monocrystalline cells with 17% plus efficiency. We made number of improvements in manufacturing as per the technology advancement in industry and offered the best to our customers, and we believe that is one of the mantras of our success,”says Agarwal.

the most stringent International quality standards requirement. Websol was awarded the prestigious PV GAP mark in 2005. Webel Solar modules are approved as per IEC 61215, IEC 61730 and UL 1703 standards as well as FM requirements by various reputed institutes like Underwriters laboratories Inc, TUV Rhienland Germany, EuroTest Laboratori S.R.l Italy and CSA International Canada. Websol is also ISO 9001.2000 certified by Underwriters Laboratories Inc for Quality management Systems. “One major achievement in 2009 was to start our new manufacturing facility at SEZ Falta, West Bengal where we started trial production in May 2009 for

March 2010

distant dream, since 80000 villages are still unelectrified and in some areas grid is not possible. The only solution available to achieve this objective is through renewable energy. By standalone solar PV power plants, we could achieve Power for all by 2012.”

Major Milestones ♦ In 1994-99, the company manufactured modules up to 90Wp for type W900. It also received quality certification from JRC-ISPRA IEC 61215.

♦ In 2000-02, the manufacturing Solar PV cells and Modules. Our new plant land area is 7.06 acres and capacity planned is 120 MW. We have installed the best equipments from leading global manufacturers in Cells and Modules line,” said Agarwal.

Future Plans “Solar PV chain starts from polysilicon manufacturing and is extended to Solar PV power installation, operation and maintenance. In solar PV, power plants require Balance of system (BOS) in addition to Solar PV modules. We are seeing growing opportunities in Megawatt Solar PV Power Plant and BOS. We have a strong project management team and we will further develop competency in EPC megawatt solar PV plants. We are in the process of setting up of 10 MW Solar PV power plants in West Bengal and planning to set up about 200 MW by 2013,“ said Agarwal. To enhance its competitive edge, the

company had undertaken 120 MW expansion program in 2006. The present capacity of Websol is 40MW which will be ramped up to 60 MW by May 2011 and to 120MW by 2011. Solar PV market was growing 40% upto 2008, due to global recession and collapse of the financial market in 2009 market has slowed down. In 2010 market is expected to grow by 43% to reach almost 6.3 GW as per Pike Research. In domestic under Jawaharlal National Solar Mission 20000 MW has been planned by 2022. To address the growing need, the company has planned this expansion program to offer cost effective and technically advanced products to its customers. With these expansions the company plans to build economies of scale in manufacturing and reduce delivery time in execution of solar power plants. Commenting on the Power for All vision by 2012, Agarwal says, “It is still a

capacity of the company increased from 1MW to 3MW and the product range expanded to 120Wp. It also received quality certification from JRC –ISPRA, IEC 61215 for all W1000 modules. The company even obtained UL 1703 listing for W900 type modules.

♦ In 2003-05, the manufacturing capacity increased from 3MW to 5MW. It also commenced production of 160 to 190 Wp modules.

♦ In 2006-08, the manufacturing capacity increased from 5 MW to 12 MW. The company received JRC – ISPRA IEC 61215 standard certification and UL 1703 certification for all products. Its industrial site was finalized in SEZ Falta West Bengal for 120 MW expansion and the company introduced new modules from 175Wp to 225 Wp. Its cell efficiency reached 16.5% plus.

♦ In 2009, SPV Cells and Modules trial production started in May 2009 at its new plant.

March 2010

“AS ON 31ST DECEMBER 2009, WE HAVE ELECTRIFIED ABOUT 13,215 UN-ELECTRIFIED HABITATIONS” Drop by drop added together makes an ocean. Similarly, Energising India doesn’t happen as a whole at once. Step by step programmes, initiatives and every effort from all concerned state electricity boards added together makes it to the final goal of Energising India, 100 percent. Moving its foot steps right in this direction, the role of Andhra Pradesh Transmission Corporation Limited stands vital contributing its part towards the success of this great mission in India.

he role of Transco in electrify ing rural India—especially in the state of Andhra Pradesh is commendable. Under the Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) programme launched in Andhra Pradesh, it was proposed to electrify 14,334 unelectrified habitations and 38 lakh rural households including 25 lakhs BPL Rural Households at a cost of Rs. 810 crores.

Giving a brief elaboration on the statistical achievements of rural electrification programme of Transco, Ajay Jain, CMD, AP Transco said, “As on 31st December 2009, we have electrified about 13,215 un-electrified habitations and 26.70 lakhs rural households including 21.50 BPL Rural Households at a cost of Rs.671 crores.” Out of 1.73 lakh applications registered under INDIRAMMA urban household electrification programme, Transco has electrified 1.71 lakh urban households. The balance households which are left un-electrified are slated to be completed by the end of March 2010. Initiating further reforms, Transco has grounded the plan of feeder bifurcation programme on the pilot basis. The feeders will be distinguished clearly for agriculture, industries and household purposes. “As the agriculture sector is suffering severely with the present supply system, the feeder bifurcation system would definitely enable 24 hour power supply in the future, if the pilot program is successful we shall gradually extend it to the other parts of the state,” said the CMD.

During the year 2008-09 Transco has supplied 67,387 million units with a minimum transmission loss of 18.5 percent which is the lowest in the country. Transco had 99.7 percent available supply capacity which is equal to available capacity of PGCIL. Transco has been adding 14,086 MW of power to T&D network every year. As the government of Andhra Pradesh has taken up lot of lift irrigation projects, Transco has played a vital role in providing power supply to all these projects. Under the JBIC funding, Transco had spent 940 crores and constructed 8 JIS substations and built 2*400kV substations and laid under ground cable in Hyderabad as a part of modernization drive in the city.

Challenges Every year the demand power is growing 10-12 percent in the state. At present the main challenge faced by Transco is to meet this ever increasing demand. To compensate this, TRANSCO has made appropriate collaborations with AP GENCO and other smaller power generation units in the state which are adding regular power to the state grid.

“A significant challenge for AP Transco is to improve its revenue base, so the corporation is looking at other businesses. Recently, we devised a plan to rent our existing transmission system to Telecom industry to lay communication cables and in turn earn good amount of revenue. At present AP Transco has a strong customer base of 2.33 crore in the state.” - Ajay Jain, CMD, AP Transco

March 2010

WINWIND HAS DEVELOPED AN INNOVATIVE WIND TURBINE FOR THE MARKET WITH ITS WWD-1 CONCEPT Winwind Power Energy Pvt. Ltd. (WPEPL) is the subsidiary of Winwind Oy (Winwind), a Finland based company (headquartered in Helsinki) engaged in the design, development, assembly and delivery as well as service and maintenance (O&M) of wind turbines. Winwind globally offers 1 MW and 3 MW wind turbines, which are known for their operational efficiency in low wind speed.

March 2010

inWinD has established operations in Northern Europe and India and is expanding gradually to other parts of the globe, including France, Portugal, Italy and the Czech Republic. WinwinD design

decades, Sterling Group has grown rapidly in size and stature into a professionally managed Group. The Group through Siva Ventures Limited acquired a controlling stake (90%) in Finland based WinWinD Oy, manufac-

commercialization of innovative technologies in renewable, alternative and sustainable energies as well as sustainable design. Masdar is driven by the Abu Dhabi Future Energy Company (ADFEC), a wholly owned company of the

is based on highly reliable variable speed technology with modern advanced Single Stage Planetary Gear solution and variable speed Permanent Magnet Synchronous Generator. WinWinD’s superior technology combines the

turer of highly reliable and technologically advanced megawatt and multimegawatt class wind turbine generators.

government of Abu Dhabi through the Mubadala Development Company. Abu Dhabi has invested $15 billion in Masdar, the largest single government investment of its kind.

Under the ownership of SIG, the Company focused on strengthening its

“WPEPL offers 1 MW (WWD1) wind turbine in the Indian market. WWD is a modern and innovative wind turbine, which has been designed by international group of top professionals. Winwind’s wind turbines are based on state-of-the-art technology with an integrated power unit, which comprises a reliable planetary gear and a low speed synchronous generator.” - Narayan Kumar, Chief Executive Officer, WinWinD Power Energy reliability of a direct drive and the compactness of traditional high speed gear system thereby offering high availability and greater energy efficiency even in lower wind speed conditions

Promoters Siva Group Siva Ventures Limited is a 100% subsidiary of Sterling InfoTech Limited which is the holding company of the Sterling InfoTech Group (Sterling Group). Sterling Group, promoted by C.Sivasankaran, is a more than USD 3 Bn Group with diversified business interests in high growth sectors including communication, media, renewable energy, realty, agriculture and food & wellness. Over the past two and a half 39

management and operations in preparation for increased production and further

Masdar Energy Limited has invested • 90 Mn on Convertible Subordinated

international expansion. The company has set very high standards for itself and takes every measure for achieving its goal of becoming a trusted global project organization. SIG provides exceptional expertise and technical knowledge

Notes in WinWinD Oy till date. On fully diluted basis of • 90 Mn, the stake of Masdar Energy Limited and Avis Ventures Ltd in WinWinD Oy will be 34.09% and 58.48%respectively.

across every phase of a project. It develops, executes and maintains capital projects on schedule, within budget, and with operational excellence.

Products

Masdar Energy Limited Masdar Energy Limited has made a substantial investment in the Company. The Masdar Initiative is Abu Dhabi’s multi-faceted, multi-billion dollar investment in the development and

WinWinD has developed an innovative wind turbine for the market with its WWD-1 concept. WinWinD’s basic values include customer satisfaction and the operational reliability of the products, as well as the win-win co-operation achieved between clients and WinWinD. “On the basis of thorough technical and economic research work the WWD March 2010

synchronous generator. This solution combines the reliability of a modern direct drive and the compactness of the traditional high-speed gear system. Low rotational speed, together with proper dimensioning, ensures reliability and high availability, while full power frequency converters and a sophisticated pitch control system ensure grid-friendly electricity. Excellent blade design and pitch control together with a permanent magnet generator enables very high efficiency of the wind turbine, even with low wind speeds,” said Kumar.

concept, which allows electricity to be produced with a new innovative integrated power unit, was created. The basis for design was efficiency, reliability and ease of maintenance, with the maintenance designed so that production stops are minimized,” said Narayan Kumar, Chief Executive Officer, WinWinD Power Energy private Limited. The drive train of the WWD-1 wind turbine consists of a single-stage planetary gear and a low speed synchronous generator. This Multibrid concept combines the reliability of a direct drive and the compactness of a gear system. The solution is suitable for a weak grid and also enables operation in a standalone mode.

and they are committed to deliver the best services to our customers as per its unique business model. WinWinD has already identified and secured wind potential sites for its proposed projects. The projects will be primarily located in the states of Tamil Nadu, Maharashtra, Karnataka and Gujarat. In addition, WPEPL has built up land bank of high wind potential sites to meet requirements in coming years. WPEPL is also planning to introduce higher capacity wind turbines (3 MW) in India. The plans are underway and after the due diligence and certification formalities are completed, the product will be launched in Indian market.

Technology Future Plans WPEPL has planned to develop large scale wind farms totaling capacity of above 250 MW during the year 2010. In addition, the Company plans to export wind turbines to various markets, having high wind potential. The manufacturing facility in India has the capability to cater to India as well as global investors

WWD1 is ideal WTG for areas with low and medium wind speed and weak grid conditions. Winwind products are based on highly reliable technology with modern advanced planetary gear solution and variable speed synchronous permanent magnet generator. “WinWind’s superior technology combines the reliability of a direct drive and the compactness of traditionally high speed gear system and offers high availability and energy efficiency even in lower wind speed conditions,” said Kumar. Permanent Magnet Synchronous Generator: The Winwind technology is based on multi-pole permanent magnet synchronous generator that is integrated with the planetary gear system into one compact power unit. Compared to traditional machines, Winwind integrated power unit is virtually free of wear, increasing the efficiency and energy production. Synchronous permanent magnet generator avoids the use of slip rings, hence simpler maintenance and it does not extract power from grid for excitation like induction generator.

March 2010

Single stage planetary gear: Single stage planetary gear with reduced gear ratio of 1:6 (as compared to three/four stage gear box with gear ratio of 1:70) ensures higher reliability due to lower operating speed. Lesser moving components lead to lower wear & tear and minimum mechanical losses. Main Bearing: The WWD has 2-RR main bearing (Two row taper roller bearing) which is specially designed for heavy & complex loads with the approximate weight of 1100 Kg. The main

turbines since 7 years have never failed while in operation In WWD-1 blade the Epoxy resin reinforced glass-fiber based transparent gel coat is being used. The primer and the PU top coats are being applied. On top of it a PU based leading edge protection foil is being applied, with this above coating methodology The shear web configuration looks like a box. So the surface area of the web is high compared to other blades. High

Advantages of Winwind WTGâ&#x20AC;&#x2122;s Reliable Wind Turbine An advanced planetary gear solution and low speed synchronous generator form the heart of the concept, which combines the reliability of a direct drive and the compactness of the traditional high speed gear system. Low rotational speed together with the proper dimensioning and sophisticated management of mechanical loads ensure reliability and high availability.

WinWinD has already identified and secured wind potential sites for its proposed projects. The projects will be primarily located in the states of Tamil Nadu, Maharashtra, Karnataka and Gujarat. In addition, WPEPL has built up land bank of high wind potential sites to meet requirements in coming years. bearing is integrated to the hub and the supporting power unit. The bearing is lubricated with oil and protected against weather. The double lip seal is filled with grease. Bearing functioning as a self retaining moment, Bearing is exposed to extreme dynamic loads. It does not require a rotor shaft and enables a low profile and light construction of the nacelle. Blade Design: The design of the rotor blades used in WinWinD machines has been conceived with a lot of reliability factors built into it. This is the principal reason why the 1 MW blades of Euros design that are performing in the 41

Grid-friendly electricity density PVC foam is used to have a high strength web, in order to transfer shear load properly. As well the connectivity area between web and shell is more. Blade surface is ensured for better performance and guaranteed for blade life for 20 years. The variety of glass reinforcements have been carefully selected for the infusion process to avoid the occurrence of wrinkles during their lay up. The gluing lip bonding methodology is unique in the market. Due to this blade is bonded in a perfect way in order to ensure 20 years life time.

Electricity production is controlled by a two-way IGBT AC inverter that feeds through a transformer to a medium voltage level of 11/22 or 33 kV. Above the rated wind speed, the turbine produces a constant output. Even with partial power, fluctuations are low. The solution is suitable for a weak grid and also enables operation in a stand-alone mode. Optimal Energy Production WWD-1 is equipped with an automatic control system that controls the generator and network as well as optimizes energy production of the wind turbine in accordance with the prevailing

March 2010

transportation and logistics of heavy engineering equipments and goods/ activities. The above mentioned facilities are using the latest manufacturing technologies and practices and have the required tools and machinery to allow full testing of the wind turbines. When the full capacity is in place, WPEPL expects to service global market over and above local requirements and shall also exploit capacity to cater to third party sale of WTG rotor blades. Blade Manufacturing Unit weather conditions. Excellent blade design and pitch control together with a permanent magnet generator enables very high efficiency of the wind turbine, even with low wind speeds. With the help of a remote control system it is possible to control the turbine and receive useful information through the internet. Maintenance Friendly Low maintenance costs are also a benefit of the WWD-concept. The maintenance is designed so that the production downtime is minimized and all the maintenance is done on-site without expensive equipment. The components used have an exceptionally long maintenance cycle, which also reduces maintenance costs.

statement of compliance & certificate reports for 60m rotor diameter & are successfully operating across Europe even in difficult terrains & adverse climatic conditions.

The major production that takes place in the manufacturing unit is the Blade Manufacturing. Over the period of operations, WinwinD has developed advanced mould / tooling technology and mould manufacturing processes.

In India, approval from CWET (Centre for Wind Energy Technology) is mandatory for the manufacturing & assembling of wind turbine generators. Winwind

WinWinD has the infrastructural ability to build the rotor blade tooling to the highest level of quality and precision. The Moulds are built by using Vacuum infusion method, utilizing the best materials available in the composite industry to match the international

(WWD-1) has successfully obtained CWET certification for product WWD-1 and is eligible to establish wind farm across India.

WPEPL - Manufacturing Facility WPEPL has established a state-ofthe-art WTG assembly facility for the production of highly reliable nacelles and hubs. It is located in 26 acres of land near Chennai, Tamil Nadu. The Company also has blade manufacturing facility in

standards. WPEPL also produces rotor blades in an optimum manner. The basic requirement to produce Rotor Blades is extensive knowledge of design, materials, and production technology. WinwinD owns a technologically advanced Rotor

about 40 acres of land adjacent to the assembly unit.

blade production facility to ensure the highest quality level in each blade by maintaining strict quality norms. To excel in the blade production technology and to ensure the Product Quality, it is necessary to focus the product to severe

Certification

The facilities are advantageously located in the vicinity of Chennai, Tamil

test conditions. For such a specialized task WinwinD has created static test bed for rotor blades.

WinWinD turbines designs are certified by Germanischer Llyod (GL) with

Nadu with strategic access to sea ports and well developed highways facilitating

Designed for extreme conditions WinWinDâ&#x20AC;&#x2122;s wind turbine has been designed with all the necessary technology in order to withstand operation in the most demanding conditions.

Nacelle Assembly Unit The above facilities have a producMarch 2010

tion capacity of 4 nacelles/hubs per day (which can be augmented to 8 with minimal investment) and capacity of 4 sets of blades (12 blades) per day. WPEPL has executed technology transfer agreement with Euros GmbH, a supplier

enter directly in megawatt market. WWD 1 is categorized into class III turbine, as per its efficiency in operating in low winds. Most of the terrains of Indian lands are low wind sites and class III turbines prove to be most efficient in

of highly efficient and superior quality blades in megawatt and multi megawatt segments, for manufacture, serial

such sites. None of the existing top players in Indian markets offers class III turbine. Indian wind industry has been

well poised to become a prominent player in Indian wind industry, with its state-of-the-art facilities and highly skilled and motivated team. “The strategic plan is to supply 200 plus MW of power using Wind Turbines in the year 2010. Besides establishing operational infrastructure for efficient and timely deliveries, the Company plans

WPEPL has established a stateof-the-art WTG assembly facility for the production of highly reliable nacelles and hubs. It is located in 26 acres of land near Chennai, Tamil Nadu. The Company also has blade manufacturing facility in about 40 acres of land adjacent to the assembly unit. production, sales, assembly of hubs

evolving rapidly and over the last few

nacelles and with Winwind Oy maintenance of blades in India.

years average size of turbines has been going up (which is 850KW at present). WPEPL is well positioned to cater the upcoming segment of Indian Wind Industry with its 1 MW WTG,“said Kumar.

Business Model And Market Positioning In the establishment of large scale reliable wind farms in India, WPEPL offers end-to-end solutions and is playing turn key developer role by offering comprehensive services encompassing acquisition of land in high wind potential zones across the country, manufacture & supply of WTGs, its installation & commissioning, grid creation/enhance-

Multibrid technology and no failure record in installed machine so far make WinWind to stand ahead from all competitors in Megawatt turbine market segment. WWD turbines have a successful track record of machines’ performance globally and have become preferred choice of existing customers.

ment, efficient lifetime operation & maintenance, facilitating project finance and carbon credit services.

WPEPL – Well Positioned For Indian Market

“In India, WPEPL is one of the few megawatt players and the only one to

technology, highly reliable product and support from Sterling Group, WPEPL is

With the backdrop of strong

to support its customers in all related areas including financing of the project. This includes tie-up with financial institutions and / or banks to ensure funding for customers at preferred terms and conditions. We look forward for a long term relationship with the Banks and Financial Institution, which will help to develop their comfort level with the projects of WPEPL. A 20 year Power Purchase Agreement, backed by complete operation and maintenance services, provides the foundation of a very secure lending from the institutions. With backdrop of superior technology and proven product, it also extends an opportunity to expand presence into green energy projects with attractive financial returns,” said Kumar.

March 2010

“THE THE VOLUME OF REPEAT ORDERS SPEAKS OF THE INDELIBLE TRUST PLACED BY OUR CUSTOMERS ON THE RELIABILITY OF SUJANA SUJANA” Sujana is the youngest of the Transmission and Telecom Infrastructure Providers. It occupies one of the top 5 positions in the country. The major factor which has contributed to attaining this high pedestal is the evolution of Sujana Towers from a simple tower manufacturer to a total solutions provider for both Transmission and Telecom Sectors. Being at the right place at the right time has also contributed to its success today.

March 2010

oday, Sujana’s kitty consists of the entire supply chain requirements for the Transmission Industry - right from the design of a transmission line till commissioning and handing over of the line to the client. Likewise, in telecom sector, Sujana is a pioneer in providing passive infrastructure to the clients and now Sujana is

comparatively advantageous companies,” said Y S Chowdary, Chairman, Sujana Towers Limited.

Latest Activities Sujana, as on date, is spread well across the country. Sujana today meets the requirements of exacting customers like PGCIL, NTPC, BHEL, Totalcomm, GTL,

achieved revenues of about US$ 14 Mn in Telecom sector. “This region is going to be a target area for us that we would be exploring. Apart from these, the GCC countries and North Africa are also actively being cultivated in view of the upcoming Gulf Grid and the huge investments planned for grid modernisation in this power

“One of the inherent advantages of having a broad spectrum of products and services is that your clientele is large and its footprint is spread all over the country. Sujana treats the entire country as a single unit and prefers to operate on this canvass and to emerge as a pan Indian Transmission Line and Telecom Service Provider. However, the focus area for the next couple of years is going to be North East & Western India,” - Y S Chowdary, Chairman, Sujana Towers Limited

actively contemplating tower augmentation in order to save upon the precious national resources. Having started as a single product, single facility, Sujana Towers today boasts of Seven Profit Centres and more than nine world class plants and its range spreads over entire gamut of the Transmission and Telecom requirements. “The volume of repeat orders speaks of the indelible trust placed by our customers on the reliability of Sujana. However, this was all not achieved in few days – the total commitment of its staff and penchant of the ownership to provide world class infrastructure coupled with superb marketing skills – over a period of three years have made Sujana one of the most competitive and

Huawei & various Transcos in the Country. “One of the inherent advantages of having a broad spectrum of products and services is that your clientele is large and its footprint is spread all over the country. Sujana treats the entire country as a single unit and prefers to operate on this canvass and to emerge as a pan Indian Transmission Line and Telecom Service Provider. However, the focus area for the next couple of years is going to be North East & Western India,” said

hungry region. Sujana, with all its path finder spirit is keeping its options open to explore any country which has the need of its products and offers peaceful working atmosphere,” said Chowdary.

Main achievements ♦Emergence as Industry leader in

providing total solutions for Transmission Lines. ♦Commencement of its Plant at

Khanapur, which is of world standard.

Chowdary.

Future Plans

International Foray

Sujana is planning to establish a full fledged testing laboratory for towers at its Khanapur site. Plans are on the drawing board to commence the manufacture of EHV Cables at its plants.

The company through its subsidiary has made successful foray into East & Central Africa during last one year and

March 2010

Growth opportunities Sujana aims to be the total solution provider in its chosen fields, viz., Transmission Lines and Passive Telecom Infrastructure. Apart from this, Sujana has already taken baby steps in its TSF division which caters to the infrastructural requirements of the Country’s mega thermal plants. Having achieved the distinction in this division in the first year of operations itself, Sujana is busy in finalising plans to expand these activities to

POWER SEGMENT ENJOYS GREAT “POWER POTENTIAL FOR GROWTH IN INDIA INDIA” Power for All India is one of the fastest growing economies in the world. For any such fast growing economy, energy requirement and supply are the key factors. Energy plays a vital role not only in industrial production but also in every day life of the citizens. Therefore, power segment enjoys great potential for growth in India. Power is a crucial

number of villages are yet to have access to electricity. Even in those parts of the country with access to electricity, industries, commercial establishments, households and farmers are experiencing frequent power cuts and aberrant voltage supply. All these are problems that should be addressed and addressed immediately. A couple of good and right things the Government has done so far is allowing private enterprises to play a larger role in this sector in the New Policy in 1991. And then this

With this, Sujana would be having its presence in power, Telecom and O&G, all of which are critical to the nation.

ingredient for economic growth and also for the improvement in the standard of life of the citizens. From communications to transport; food supplies to amenities of homes, offices and factories greatly depend on a

Growing step by step and with foresight, the group is all set to take its specialisation to new heights not only with in the country but also across the globe. “Sujana feels proud for its participation and contribution for the

reliable supply of electrical power. Therefore, the initiative taken by the Government of India to provide “Power for All by 2012” is something that has come at the right time. This vision, if achieved, shall also support a very

growth of the country,” said Chowdary.

healthy growth rate GDP.

We must admit that there are many challenges facing us. Our power

Is India Prepared?

generation capacity is inadequate. We are not able to utilize the existing generation capacity properly. Interregional transmission links too are very ill-equipped. There is no grid discipline. Our sub-transmission and

Country’s Oil & Gas Sector too.

Sujana has already taken baby steps in its TSF division which caters to the infrastructural requirements of the Country’s mega thermal plants. Having achieved the distinction in this division in the first year of operations itself, Sujana is busy in finalising plans to expand these activities to Country’s Oil & Gas Sector too.

The Government of India does not have any options there. It should be prepared to meet the target of Power for All By 2012. The achievement of installed power capacity from 1362 MW to over 100,000 MW since independence and electrification of more than 500,000 villages is quite impressive. What has been achieved is good, but what is remained to be achieved yet is of more importance here. It may be noted that the annual per capita consumption of electricity in India is at about 350 kWh, which is among the lowest in the world. A large

Power for All by 2012 initiative taken up by the Union Ministry of power at a time, when such ambitions & visions have become a dire need of the day. Now it is time for concreting the vision into a reality.

Energy saving

distribution networks are not equipped properly and hence, are often resulting in frequent power cuts. Power pilferage is at a dangerously high level. And most importantly there is lack of co-ordination among the states. If all these are addressed, we are sure to see an India, more developed. We are also eagerly waiting for effective implementation of strategies that government is chalking out. March 2010

“THE FOCUS FOR NEXT FEW YEARS WILL BE ON NORTH EAST AND WESTERN INDIA, WHERE SUJANA FORESEES LARGER DEMAND” SUJANA HAS BEEN A FORMIDABLE NAME IN SECONDARY AND LONG STEEL INDUSTRY FOR OVER TWO DECADES. WITH FORESIGHT AND STRONG COMMITMENT, IT HAS HARNESSED A CORPORATE, MANUFACTURING CAPABILITY AND BRAND PLATFORM TO BUILD ONE OF THE YOUNGEST EMERGING LEADERS IN THE POWER TRANSMISSION AND TELECOM TOWERS MARKET THROUGH ITS

SUJANA TOWERS

LIMITED (STL) WITHIN 1,000 DAYS! AN ACHIEVEMENT SUJANA HAS SCRIPTED WITH LITTLE FUSS.

ittle doubt, Yalmarty Kamesh,

Managing Director, STL, is a busy man; ineracting with his nine key operational general managers and clients ranging from PGCIL, NTPC, BHEL, GTL and Huawei, besides Transmission Companies from almost all the

ments and rising to be one among the top 5 positions in the country today. Un-stinted commitment to customer

States in the Country. Playing a key role in backing the flagship Steel Companies in scripting the success story of Sujana emerging as one of the largest and fast growing diversified business groups in South India, Sujana Towers has worked on an aggressive vision since its inception three years ago as a forward integration move.

No wonder, this young Transmission and Telecom Infrastructure provider in the country is rife with busy buzz in all divisions, making large-scale invest-

delight and quality, able to meet exacting quality parameters, price and timelines of clients in creating next generation power and telecom infrastructure has been a reason for this success. A major factor which has contributed to achieve this high pedestal is the evolution of Sujana Towers from a simple tower manufacturer to a total solution provider for both Transmission

and Telecom Sectors, sunrise sectors in India. Kamesh knows that he was lucky at having been at the right place at the right time, but he is already transforming the company to ensure future success has lesser role for luck or positioning, even as he realizes after achieving minimum threshold of the leviathan opportunity ahead of him. “I wonder of those days in bygone times when the steam engine and railway train were invented and the world saw a new era dawning. Or the first age of the telecom when the telephone was invented and a whole new

“I wonder of the days when steam engine and railway train were invented and the world saw a new era. Or when telephone was invented and a whole network was laid. Today, across developing economies, I see a new world being envisioned and built – of taking electric and mobile waves” - Yalmarty Kamesh, MD, STL

March 2010

Similarly, in the Telecom sector, Sujana Towers is a pioneer in providing passive infrastructure to clients and is working on further augmenting tower capability in order to save upon precious national resources. Having started as a single-product, single-facility, Sujana Towers today boasts of seven Profit Centres and nine world-class plants and a range spread over the entire gamut of Transmission and Telecom requirements. “We did not achieve all this in a few days; total commitment of our staff and management passion and penchant to provide world-class infrastructure, coupled with superb marketing skills over a period of three years have made Sujana Towers one of the most competi-

network was laid across the world. Today, across developing economies in Asia and Africa, I see a new world being envisioned and built – of taking electric and mobile waves,” said Kamesh.

turing and delivery platform to meet the end-to-end needs of the industry.

One of the strong foundations for the success of Sujana Towers and its even more ambitious plans for the next three

design of a transmission line to commissioning and handing over of completed lines to clients.

years was based on creating a manufac-

Today, STL has capabilities to cater to the supply chain requirements for the Transmission Industry, starting from

tive and comparatively advantageous companies. The volume of repeat orders speaks of the indelible trust placed by our customers on our reliability,” says Kamesh in a rare interview. Sujana Towers, through its overseas subsidiary Telesuprecon, has made successful foray into east and central Africa during the last one year and achieved revenues of about US$ 14 million in Telecom sector alone.

Today, STL has capabilities to cater to the supply chain requirements for the Transmission Industry, starting from design of a transmission line to commissioning and handing over of completed lines to clients.

March 2010

“Today, we have a footprint across India in both Power and Telecom sectors. One of the inherent advantages of having a broad spectrum of products and services is that your clientele is large and its footprint is spread all over the country.”

“These zones in Africa are going to be our target area we would be exploring. We are also actively cultivating markers in GCC countries and North Africa in view of the upcoming Gulf Grid and huge investments planned for grid modernisation in this power hungry region,” he said. Sujana, with all its path finder spirit and a larger corporate promise and hallmark of Entrepreneurship Unleashed is keeping options open to explore other countries which are in need of its products and services.

laboratory for towers at this site in Khanapur. Plans are on the drawing board to commence manufacturing of EHV Cables at its various plants spread across south India. Sujana Towers aims to be a total solution provider in Transmission Lines and Passive Telecom Infrastructure.

STL has also already taken baby steps in its Technological Structures Fabrication (TSF) division, which caters to infrastructural requirements of mega thermal plants. The TSF division achieved a rare distinction in its first year of operations of being awarded the Best and Chosen Supplier award by the PSU EPC global

“Though we aspire to emerge as a pre-eminent young leader in the Power and Telecom Infrastructure industry internationally, our emergence as an industry leader in total Transmission Line provider in India has been our major achievement. The commencement of a new mega-plant at Khanapur, near Hyderabad , a world-class facility with capabilities in customized galvanized steel and epoxy-coated galvanized steel, will further our supply prowess to the next level,” he hopes. Sujana Towers is planning to establish a full-fledged type testing

March 2010

supply holds the key to success. Energy plays a vital role not only in industrial production but in every day life of citizens. Therefore, power segment enjoys great potential for growth in India.” Sharing details of a white paper created by STL, he explains that Power is a crucial ingredient for economic growth, a key national infrastructure and economic lifeline, on which depends the social possibility of improving standard of life. “From communications to transport; food supplies to domestic amenities, offices and factories; everything depends on a reliable supply of electrical power. Therefore, initiatives taken by our Central Government to provide ‘Power for

behemoth BHEL. STL is currently busy finalising plans to expand these activities to India’s Oil & Gas sector. “With this, Sujana would be having presence in Power, Telecom and O&G sectors, all of which are critical to national development. We at Sujana are proud about participating and contributing to the growth of the country, a core

value of the corporate of aligning its businesses to national needs and macro economic development plans,” reveals Kamesh. Speaking about the Power sector and the potential for growth in India, Kamesh said, “India is one of the fastest growing economies in the world. For any such fast growing economy, energy generation and

All’ by 2012 have come at the right time. This vision, if achieved, shall support a very healthy growth rate GDP,” he says. When asked of his views on if India is prepared to meet the target of Power for All by 2012, he said, “The Government of India does not have many options here. It has to prepare to meet the target of Power for All by 2012. The achievement of installed power capacity from 1362

Sujana Towers, through its overseas subsidiary Telesuprecon, has made successful foray into east and central Africa during the last one year and achieved revenues of about US$ 14 million in Telecom sector alone.

March 2010

MW to over 100,000 MW since Independence and electrification of more than 500,000 villages are great achievements. But while what has been achieved is good, what remains to be achieved is daunting.” Annual per capita consumption of electricity in India is at about 350 kWh, among the lowest in the world. A large number of villages are yet to have access to electricity. Even in places with access electricity, industries, commercial establishments, households and farmers are experiencing frequent power cuts and aberrant voltage supply. All these are problems that should be addressed and addressed immediately, he feels. A couple of good and right things the government has done so far is allowing private enterprises to play a larger role in this sector in the New Policy in 1991.

and making lifestyles more natural are larger changes our society must get passionate about.” “Economic needs also impel such a change,” he argues. “Our power generation capacity is inadequate. We are not able to utilize existing generation capacity properly. Inter-regional transmission links too are very illequipped. There is no grid discipline. Our sub-transmission and distribution networks are not equipped properly, often resulting in frequent power cuts. Power pilferage is at a dangerously high level in many parts of the country, and characterised by lack of co-operation and co-ordination among the states. We have to make more power, utilize it better and save it too. Only then will we be able to become an empowered society and economy.”

“If all these are properly addressed, we are sure to see an India which is more developed and happier. We are eagerly waiting for active and effective implementation of strategies our government is chalking out even as we sense a huge opportunity for companies like us,” he adds.

The ‘Power for All’ initiative taken up by the Union Ministry of Power can become a reality from vision only with larger private participation. India is prepared to meet the target, if only it deals with all problems and empowers to welcome private sector to participate as partners and long-term stakeholders. Discussing energy saving and environment, two key missions that personally surcharge Kamesh are the basis of STL’s Corporate Social Responsibility, he says, “Saving power is a national cause; it should go beyond individual discretion or planning to script a larger cultural behavioural revolution. Organizations and NGOs must join in, as must R&D and manufacturing of generation-next LEDs and appliances. Building designs in harmony with nature

March 2010

“NEEPCO IS MAINTAINING PROFIT OF RS. 200 PLUS CRORES SINCE 2003-04” For a Corporation which started with a modest beginning by executing 150 MW Kopili Hydro Electric Project in North Cachar Hills, Assam, today NEEPCO has gained sufficient experience to plan, promote, design, execute, operate & maintain power generation projects of any magnitude both in hydro & thermal sector.

March 2010

orth Eastern Electric Power Corporation (NEEPCO) Limited, after its inception in 1976, has grown into one of the premier power sector companies operating in the North Eastern part of the country. The authorised share capital of NEEPCO has increased from Rs.2,500.00 Crs during 1998-99 to Rs.5,000 Crs during 2008-09. NEEPCO has been granted the coveted Schedule A status by the Govt. of India on 15th July, 2008. NEEPCO is likely to receive Mini Ratna Status shortly. The corporation started with the execution of 150 MW Kopili Hydro Electric Project in North Cachar Hills, Assam. The first unit of this project was commissioned in 1983-84, heralding a new era in the power sector horizon of the Region. The Corporation has been steadily achieving capacity addition in a phased manner and, today, the Corporation has an installed capacity of 1130 MW of power, 375 MW from Hydro and 755 MW from Gas Based Thermal Plant. Capacity addition of NEEPCO during 8th Plan (1992 to 1997) was 201 MW. Capacity addition of NEEPCO during 9th Plan (97-98 to 2001-02) was 754 MW. Capacity addition of NEEPCO during the

Name of Station

Generation Capacity (MW)

The Addl. Transmission Line Project including tie line of total length 465 CKM had also been completed which consists of the following segments:

A. HYDRO Kopili

4X50=200

Khandong

2X25=50

Kopili Stage-II

1X25=25

Doyang

3X25=75

Ranganadi

3X135=405

Sub Total (A)

755

B. THERMAL

♦ 132 KV S/C Khandong-Haflong section

(64 KM) completed in 1984. ♦ 132 KV S/C Haflong-Jiribam section

(100 KM) completed in Dec’85. ♦ 132 KV S/C Jiribam-Aizawl section

(170 KM) completed in May’88. ♦ 132 KV S/C Aizawl-Kumarghat section

(131 KM) completed in May,88. ♦ LILO of 132 KV S/C Dharmanagar-

AGBPP

6X33.5+3X30=291

AGTPP

4X21=84

Sub Total (B)

375

Total (A+B)

1130

10th Plan period (02-03 to 06-07) is 25 MW. NEEPCO has also completed the following transmission line successfully: The 132 KV S/C Kopili-KhandongKhleriat Transmission line (64 CKM) and the 220 KV D/C Kopili-Samaguri Transmission line (110 CKM) were completed in 1981.

Agartala line in Kumarghat sub-station completed. Subsequently, in compliance with the national policy of centralizing power transmission activities, all transmission projects of NEEPCO were handed over to erstwhile NPTC (presently Powergrid Corporation of India) with effect from 14.11.1991 on Management Contract basis and de-jure transfer has been affected from 01.04.1992. “NEEPCO is maintaining profit of Rs. 200 plus Crores since 2003-04. In the year 2007-08, NEEPCO has recorded Gross Sale of Rs.860.31 Crs. with posting

“NEEPCO is maintaining profit of Rs. 200 plus Crores since 2003-04. In the year 2007-08, NEEPCO has recorded Gross Sale of Rs.860.31 Crs. with posting of a net profit of Rs. 258.31 Crs. During 2008-09, the Corporation has posted Gross Sale of Rs.857.83 Crs. with posting of a net profit of Rs. 296.97 Crs. recording a growth of 14.97 % on year to year basis. - I.P Barooah, CMD, NEEPCO

March 2010

tion and subsequent preparation of FR/ DPR etc. ♦ Kameng-I (Bhareli-I) H.E Project(1120

MW) ,Arunachal Pradesh : S & I stage ♦ Mawphu HEP (85 MW), Meghalaya:

S&I Stage. Signing of MOA with State Govt. to be concluded shortly. ♦ Ranganadi HEP Stage-

II(130MW),Arunachal Pradesh: Review of DPR under hold. Signing of MOA with State Govt. waited. ♦ Garo Hills Thermal Power Project

(500MW): Signing of MOA with State of a net profit of Rs. 258.31 Crs. During 2008-09, the Corporation has posted

of the total Installed Capacity of 2284.82 MW in the region (as on 30.11.2009.

Gross Sale of Rs.857.83 Crs. with posting of a net profit of Rs. 296.97 Crs. recording a growth of 14.97 % on year to year basis. In spite of various constraints which are not predominantly prevalent in other parts of the country, this success

Source: CEA website).

was made possible only due to sustained and collective and dedicated efforts of all its employees. This was possible due to excellence in achieving machine availability, thereby making substantial growth in terms of sale of energy and receipt,” said I.P Barooah, CMD, NEEPCO. NEEPCO has an Installed Capacity of 1130 MW, which is currently almost 50%

Govt. to be concluded shortly. ♦ West Khasi Hills Thermal Power

Project (240 MW) in Meghalaya: S & I stage.

Ongoing status of projects

♦ Agartala Gas Based Project-Extension

NEEPCO has a total of 870 MW ongoing projects and 2115 MW future projects in the pipeline. (See Box)

(40 MW): Preparation of FR/DPR is under process. NEEPCO is looking for capacity addition to the tune of 2985 MW by end of XII Five Year Plan.

Future Projects With a view to expand more and future capacity addition, NEEPCO is pursuing various State Governments of N.E. Region for New projects. Following

Latest activities “Apart from Operation & Mainte-

are the few projects NEEPCO made some progress in regard to Survey & Investiga-

nance of various commissioned projects as mentioned above (including Modernization & Renovation of Kopili HEP –

Ongoing Projects Project

State

Installed Capacity (MW)

Remarks

Kameng HEP

ArunachalPradesh

600

Revised Commissioning Schedule is May, 2013

Tuirial HEP

Mizoram

Works on hold. Revised PIB clearance expected shortly. Balance work will be completed within 3(three) years from the date of restart.

Pare H.E Project

ArunachalPradesh

110

Commissioning Schedule is Aug, 2012

Tripura Gas Based Project

Tripura

100

Revised PIB and CCEA clearance expected shortly

TOTAL

870

March 2010

Phase-wise), latest activities of NEEPCO hinges on implementation of Kameng HEP(600MW),Pare HEP (110 MW ) in Arunachal Pradesh.

I.P Barooah, CMD, NEEPCO shares his views on the power scenario in North-East and the ambitious ‘Power for All’ agenda of the Government of India

NEEPCO is also constantly pursuing concerned authority for early reviable of Tuirial HEP(60 MW ) in Mizoram. NEEPCO is constantly pursuing various State Government’s in N.E. Region for few more Hydro & Thermal Projects.Govt. of

Your views on the power segment in the North-East and the potential it holds for growth

is projected to go up from 1219 MW and 6288 MU in 2003-04 to 2537 MW and 13329 MU in 2011-12 indicating a

in the country?

growth of 13.95% and 13.20% respectively.

Mizoram is considering the allotment of few Hydro Projects for investigation & preparation of DPR,” said Barooah.

and gas reserves which, if harnessed to their full capacity can, will not only make this region power sufficient but also can supply considerable amounts of power to the rest of the country.

Main achievements in last one year NEEPCO was conferred with ‘Schedule A’ status by the Government of India in August, 2008. NEEPCO continues in its quest for continual improvement and has submitted a proposal for conferring ‘Mini Ratna’ status. NEEPCO earned gross revenue of Rs.971.89 Crores and highest ever pretax profit of Rs.326.88 Crores during the year 2008-09 as compared to the previous year’s figure of Rs.282.24 Crores. NEEPCO’s highest ever Dividend payment was Rs. 89.10crs for the year 2008-09. The Authorised Capital of the Company has grown from Rs.3500 Crores to Rs.5000 Crores.

North East India harbours vast power reserves in terms of hydro, coal

The total hydro potential of the North East has been assessed as 58971 MW, out of which only 1202 MW (2.04%) has been developed so far. Similarly, this region has 945.03 million tones of coal reserves which can produce 6000 MW of power for 25 years, and 152 billion cum of gas reserves which is capable of generating 10000 MW of power for 10 years.

Your views on ‘Power for All by 2012’. ‘Power for All’ mission would require that our installed generation capacity should be at least 2,00,000 MW by 2012 from the Generation level of 1,32,330 MW (31ST March,2007). Growth in demand has exceeded the supply and power shortage has continually been experienced. From the records of capacity addition planned and achieved in 8th, 9th and 10th plan it is seen that in the 8th plan capacity addition target was 30,538

With proper planning and implementation of power projects by experienced and technically competent power companies, it is hoped that the

MW against which achievement was 16,428MW (53.8%), in 9th Plan achievement was 19,119MW (47.5)% against capacity addition target of 40,245 MW and in the 10th Plan the achievement was 21,180MW (51.5%)

power potential of NER can be fully tapped and this region can become the power house of the country in future.

against target of 41,110MW. In the 11th Plan a target of capacity addition for 78,530MW has been set by CEA.

As per the Indian scenario up to

But from the records of past

NEEPCO as a Corporate Citizen is well aware of its Corporate Social Responsibility (CSR) and has framed comprehensive policy guidelines for taking up developmental works in areas near their projects. During the year 2008-09, the

the end of March 2009 net shortfall in meeting the peak demand was 12.0% against energy deficiency of 11.00%. The North Eastern Region is facing deficit in meeting its peak demand. As per CEA’s report regional shortage for

achievements it is revealed that only about 50% of the targets could be achieved in the last three five year plans. Therefore, it will not be easy enough to meet the requirement of capacity addition to the tune of

Company generated 5405 MU against a target of 5407 MU.

the year 2008-09 was around 1273 MU and peak shortage was around 462 MW. As per the 17th EPS report the peak and energy requirement for NER

68,800MW by 2012 for electrification of all villages i.e. to provide power for all by 2012 only from generation point of view.

March 2010

HINDUSTAN PETROLEUM CORPORATION LIMITED ACHIEVED HIGHEST EVER TURNOVER OF RS.1,16,428 CRORES DURING 2008-09 Hindustan Petroleum Corporation Limited (HPCL) is a fortune 500 Company engaged in refining and marketing of petroleum products in India with a turnover exceeding Rs 1,16,428 Crores (US$ 25,618 Millions) during FY 2008-09, having about 18% marketing share in India and a strong market infrastructure. It is a Mega Public Sector Schedule ‘A’ Company with Navaratna status. It is under the administrative control of Ministry of Petroleum and Natural Gas with 51.11% shareholding by the Government of India. 56

March 2010

industan Petroleum Corporation Limited (HPCL) is a fortune 500 Company engaged in refining and marketing of petroleum products in India with a turnover exceeding Rs 1,16,428 Crores (US$ 25,618 Millions) during FY 2008-09, having about 18% marketing share in India and a strong market infrastructure. It is a Mega Public Sector Schedule ‘A’ Company with Navaratna status. It is under the administrative control of Ministry of Petroleum and Natural Gas with 51.11% shareholding by the Government of India. HPCL, a Fortune 500 company with a turnover of Rs.1,16,428 crores during 2008-09 against Rs.1,03,837 crores in 2007-08, is one of the major integrated oil refining and marketing companies in India. It is a Mega Public Sector Undertaking (PSU) with Navaratna status. HPCL owns the country’s largest Lube Refinery with a capacity of 335,000 Metric Tonnes which amounts to 40% of the national capacity of Lube Oil production. HPCL has given India a firm ground in this sector with its world class standard of Lube Base Oils. Presently

HPCL produces over 300+ grades of Lubes, Specialities and Greases.

Performance During last one year HPCL has been constantly focusing to achieve high growth in the States where HPCL has presence of large infrastructure. The retail value proposition is to provide absolute customer delight at the point of interface through quality and quantity of product and services with a smile. The marketing vision 2015 of the Oil Industry has been developed for consumer satisfaction and beyond jointly by Ministry & Oil Industry. HPCL has been concentrating to realize these visions. Constant endeavours have also been made to minimize the operational expenditure and improve reliability of refineries. HPCL has already commissioned green fuel projects at MR and VR to provide EURO IV MS conforming to auto fuel norm which would be effective 1st April 2010. “The Corporation is also focusing on setting up a 9 MMTPA capacity Green Field Refinery project being promoted by HMEL at Bathinda in Punjab. The project is progressing as scheduled and

expected to be completed by first quarter 2011. HPCL is also concentrating on accelerating entry in alternate energy business. HPCL is setting up 60 KL per day capacity Ethanol manufacturing plants at Sugauli and Lauriya in Northern Bihar. The projects are progressing as scheduled and are expected to be completed by December 2010. HPCL has also made entry in Wind Energy business. 25 MW capacity Wind Energy Generators (WEG) have already been commissioned at Dhule in Maharashtra and Jaisalmer in Rajasthan. The project for setting up additional 25 MW capacity at appropriate locations is under implementation,” said Arun Balakrishnan, CMD, HPCL. The Corporation has also made entry in Upstream business. It has already been awarded equity in 22 blocks in India and 4 blocks overseas (1 Australia, 1 Oman and 2 Egypt) in consortium with partners. These blocks are in exploratory stage and seismic study/interpretation as well as drilling of well is under progress. Performance during 2008-09 Hindustan Petroleum Corporation Limited achieved highest ever turnover of

HPCL is also concentrating on accelerating entry in alternate energy business. HPCL is setting up 60 KL per day capacity Ethanol manufacturing plants at Sugauli and Lauriya in Northern Bihar. The projects are progressing as scheduled and are expected to be completed by December 2010. HPCL has also made entry in Wind Energy business. - Arun Balakrishnan, CMD, HPCL

March 2010

period largely due to the decline in the international prices of products. The Refineries at Mumbai and Visakh processed 11.85 million tonnes of crude during April – December, 2009 as against 11.64 million tonnes during April – December, 2008. The combined GRM recorded for April – December, 2009 was US $ 2.51/bbl.

Rs.1,16,428 crores during 2008-09 against Rs.1,03,837 crores in 2007-08. The profit after tax for the year 2008-09 was Rs.575 crores. The Refineries at Mumbai & Visakh achieved a combined thruput of 15.81 Million tonnes. Average Gross refining margin of both the Refineries was $ 3.97 per barrel. Market sales (including exports) were 25.39 Million tonnes compared with 24.46 Million tonnes in 2007-08. The product pipelines achieved the highest ever thruput of 10.58 Million tonnes as compared to 7.83 Million tonnes in the previous year. Performance during 2009-10 upto Q3 The sales of petroleum products (including exports) have increased to 19.76 million tonnes during April – December 2009 registering a growth of above 6.5% over the corresponding period of the previous year. The growth in domestic sales was 5.1% which is the highest among oil marketing PSUs. The Company has registered a turnover of Rs. 79,169 crores for the period April – December, 2009 as against Rs. 91,553 crores in the corresponding previous 58

On the financial front, HPCL reported a profit after tax of Rs.544 crores during April – December 2009 as against a loss of Rs.4529 crores during corresponding period last year. The interest cost during the period April – December 2009 was lower at Rs.740 crores, as compared to Rs.1705 crores during the same period of previous year. The decrease in interest cost was due to lower levels of borrowings as also lower rates of interest. The net under recovery on sale of sensitive petroleum products during April – December 2009 also came down to Rs.2,526 crores from Rs.2,746 crores during corresponding previous period. Foreign exchange gain during April – December 2009 was Rs.392 crores. The facilities for Euro IV MS production at Mumbai Refinery and at Visakh Refinery have been commissioned during this year. The new JV Refinery at Bathinda, viz. HPCL – Mittal Energy Ltd. (HMEL) is progressing as per schedule and mechanical completion is expected by March, 2011.

JVs & MoUs Forming a joint venture with major MNCs provides an opportunity to share the cost and the risk associated with that line of business. The JV partners also leverage their strengths to pursue with the progress of project and handle it in an efficient manner. The strategic alliance with the MNCs can also be leveraged to globalise the operation. Synergy between the JV partners accelerates the growth of the Companies. “HMEL a joint venture company promoted by HPCL and Mittal Energy Investments Pte Ltd is setting up a 9 MMTPA capacity Refinery at Bathinda in Punjab. The Refinery has state of the art environment and safety features with world class technology. Refinery is designed with high complexity factor and flexibility to process heavy, high sulphur and other opportunity crude. This project is progressing as scheduled and more than 60 % physical progress has been achieved. It is expected to be completed by first quarter of 2011. The JV approach has not only contributed in sharing the financial investment but also helped in accelerating the project progress of setting up a world class Green Field Refinery at Bathinda in Punjab. Subsequent to commissioning of this Refinery, accessibility of products would help HPCL in meeting the POL product demand in the Northern Market,” said Balakrishnan. For HPCL, the joint venture mode of approach has been instrumental to jointly set up LPG Cavern Storage project in collaboration with a major Oil MNC, M/s. Total S.A. France and bitumen emulsion plants in collaboration of Colas of France.

March 2010

The various MoUs signed by HPCL/ Joint Ventures promoted in the recent past are as under: Bio-fuels A joint venture, CREDA-HPCL Bio Fuel Ltd., has been entered into with Chhattisgarh State Renewable Energy Development Agency, to acquire land on lease from the Govt. of Chhattisgarh for cultivation of Jatropha which would yield Bio-diesel. This is in line with Corporationâ&#x20AC;&#x2122;s pursuit for promoting alternate fuels. HPCL would have exclusive rights on the entire produce of Jatropha seeds and would facilitate production and marketing of Bio-diesel across the State of Chhattisgarh. South Asia LPG Co. Pvt. Ltd (SALPG) HPCL in collaboration with TOTAL SA of France has set up a cavern at Visakhapatnam for storage of 60,000 MT LPG. The project was commissioned in December 2007. During first full year of operation in 2008-09, volume of 578,853 MT of LPG was discharged into the Cavern. The turnover during the year 2008-09 was Rs. 83.75 crores and net profit (PAT) was Rs.29.78 crores.

emulsions. HINCOL currently operates seven manufacturing plants across India, manufacturing international quality value -added bituminous products such as bitumen emulsions & cutbacks and modified bitumen. HINCOL achieved a volume growth of 17% and profitability growth of 43% during 2008-09. The turnover of the company crossed Rs.350 crores for the year 2008-09. The products of HINCOL are widely used by agencies associated with road construction. Prize Petroleum Company Limited (PPCL) HPCL, in partnership with ICICI and HDFC, had formed this Joint Venture E&P Company for participating in exploration and production of hydrocarbons. PPCL has signed a Service Contract with ONGC Ltd for development of marginal fields in Cambay basin (Hirapur, Khambel and West Bechraji field) with 50 % holding in the consortium. During the year, Hirapur field produced 46,926 barrels of oil. PPCL has also entered into a Production Sharing Contract (PSC) with 50 % stake in an onland marginal field at Sanganpur. During the year, there was a production of 1,167 barrels of oil from this field. Bhagyanagar Gas Ltd. (BGL) Bhagyanagar Gas Ltd. (BGL) is a

dispensing station in Rajahmundry. During the year, BGL participated in the bidding process for Kakinada CGD project and was successful in obtaining Authorisation from Petroleum & Natural Gas Regulatory Board (PNGRB). Further, MOP&NG has also confirmed that BGL is the authorized agency to carry on the CGD business in the cities of Hyderabad and Vijayawada. BGL is also operating 4 Auto LPG Outlets â&#x20AC;&#x201C; 3 in Hyderabad and 1 in Tirupati. BGL achieved 6.61% higher sales at Rs.35.31 crores and higher profits (PAT of Rs. 3.04 crores) during 2008-09 as compared to previous year. Aavantika Gas Ltd. (AGL) Aavantika Gas Limited (AGL) is a Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz., CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the State of Madhya Pradesh. During the year 2008-09, AGL commenced commercial operations from its Mother station (at Indore) and 5 Daughter stations (4 in Indore and 1 in Ujjain). AGL has initiated action for laying 40 km long Steel Pipeline grid and for commencing 10 CNG stations in Indore. AGL has also taken steps to establish Mother Station at Gwalior and Ujjain.

Being largest LPG storage capacity in the country, SALPG Cavern has eased storage constraints on east coast and ensured smooth availability of LPG in the supply zone.

Joint Venture Company by GAIL and HPCL for distribution and marketing of environmental friendly fuels (green fuels) viz., CNG and Auto LPG for use in the transportation, domestic, commercial and industrial sectors, in the State of

Hindustan Colas Ltd. (HINCOL)

Andhra Pradesh.

HINCOLAS, a joint venture Company jointly promoted with M/s COLAS SA, France for manufacturing bitumen

BGL is operating 6 CNG dispensing stations in Vijayawada, 3 CNG dispensing

HPCL has undertaken various major projects to improve the profitability / meet the auto fuel norms. In order to monitor progress of these projects, a

stations in Hyderabad and 1 CNG

world class consultant has been

Ongoing Projects

March 2010

engaged. This has helped in closely reviewing the progress of the projects and taking corrective measures so as to ensure completion of the projects within stipulated cost and time. Following major projects are under various stages of implementation: Lube Oil Base Stock at MR At present, Mumbai refinery produces various grades of LOBS with sulphur above 300 ppm and saturation below 90%, which fall under API Gr-I category. Customer requirement and market demand is for LOBS quality with sulphur below 300 ppm and saturation above 90%, which falls under API Gr-II category. Hence, in order to retain/ increase market share of LOBS, this project has been undertaken to improve LOBS specifications to API Gr-II category with a capability to produce API Gr-III. The overall physical progress on LOBS project is 90.5%. The project is progressing as scheduled and is expected to be completed by May 2010.

HPCL, in partnership with ICICI and HDFC, had formed a Joint Venture E&P Company, Prize Petroleum Company Limited (PPCL), for participating in exploration and production of hydrocarbons. PPCL has signed a Service Contract with ONGC Ltd for development of marginal fields in Cambay basin with 50 % holding in the consortium. Diesel Hydro Treater (DHT) at MR The Diesel Hydrotreater at MR will enable the production of diesel with Euro-IV specifications, as per the Auto Fuel Policy. The overall physical progress on DHT project at MR is 14.5%. The project is progressing as scheduled and is expected to be completed by September 2011.

New FCCU at MR HPCL had planned to increase its crude processing capacity of Mumbai refinery from its existing capacity of 6.5 MMTPA to an overall capacity of 7.9 MMTPA by de-bottlenecking of the existing units. HPCL is setting up a grass root FCCU with a capacity of 1.45 MMTPA at MR. The new FCCU project will enhance the secondary processing capacity of MR, thereby enabling full utilization of the increased crude processing capacity at MR and maximizing the profitability of operation. The overall physical progress on FCCU project is 81.3% (as of Decâ&#x20AC;&#x2122;09). The project is progressing as scheduled and is expected to be completed by May 2010.

Diesel Hydro Treater (DHT) at VR The Diesel Hydrotreater at VR will enable the production of diesel with Euro-IV specifications, as per the Auto Fuel Policy. The overall physical progress on DHT project at VR is 16.0%. The project is progressing as scheduled and is expected to be completed by Sep 2011. Single Point Mooring (SPM) Project at VR SPM is a crude receipt facility proposed to be put up offshore to facilitate receipt of large crude parcels of the size of around 300,000 Metric Tonnes from Very Large Crude Carriers (VLCCs).

The VLCCs cannot be berthed in the regular crude receiving jetties due to draught restrictions. The installation of SPM will reduce the freight cost and wharfage charges and thus will improve the economics of the refinery. The overall physical progress on SPM project at VR is 62.3%. The project is progressing as scheduled and is expected to be completed by May 2010. Resitement of Visakh Marketing Installations In order to provide additional ground area to Visakh Refinery for setting up facilities to produce green fuels, this project was undertaken to shift the adjacently located marketing facilities consisting of POL terminals and LPG Plant. The scope of the green field project consists of setting up of new Black oil, White oil and LPG facilities in the plots acquired from VPT. The total project cost is about Rs.750 Crs. Black Oil facilities include setting up of about 94,000 KL storage tanks and two tank truck gantries of 8 bays each to handle Bitumen, Furnace oil (FO), Low Sulphur Heavy Stock (LSHS), Light Diesel Oil (LDO) Jute Batching Oil (JBO) and High Flash HSD (HF HSD). White Oil facilities include storage of about 1,68,000 KL Motor Spirit (MS), High Speed Diesel (HSD), Naphtha & Aviation Turbine Fuel (ATF), two tank truck loading gantries of 8 bays each and a single spur T/W gantry to load 46 BTPN tank wagons. LPG facilities include setting up of mounded storage of about 4,400 MT store LPG, Auto LPG and Propylene, a single spur tank wagon gantry to load 32 BTPN TG wagons and bottling facilities of capacity 88,000 MTPA.

March 2010

About 33% of the physical work of Black Oil Terminal is completed. In case of White Oil Terminal, about 18% of the work is completed. About 35% of LPG Facilities are completed. The projects are progressing as scheduled.

energy security. In order to respond to global climate change and sustainability, HPCL has also started focusing on increasing investments on renewable energy sources viz., wind power, biofuels and solar,” said Balakrishnan.

Resitement of Chennai Terminal

♦HPCL has already commissioned 3.75

Construction of a Greenfield Oil Terminal at Ennore located in Northern outskirts of Chennai city is in progress. Ennore is approx. 30 kms. away from Chennai city and falls under Tiruvalur district of Tamil Nadu. Under this project, it is planned to provide tankages of capacity 1,40,000 KL at the Ennore Terminal for storage and dispatch of products of Motor Spirit (MS), High Speed Diesel (HSD), Superior Kerosene Oil (SKO) and Aviation Turbine Fuel (ATF). The Terminal has been designed to conform to the highest safety standards stipulated by OISD and PESO. The tank farm and TTL operations will be fully automated. Project includes setting up of fully automated facilities including tankages, Tank Truck loading facility, Tank Wagon loading/ receipt facility along with product receipt facilities from

MW capacity Wind Energy Generators (WEG) at Dhule in Maharashtra and 21.25 MW capacity WEGs in Jaisalmer, Rajasthan. The project for setting up additional 25 MW capacity at appropriate locations is under implementation. ♦HPCL intends to enter into manufacture

of Ethanol. In order to achieve this objective, HPCL has already acquired two closed sugar mills at Suguali & Lauria in Bihar. ♦A Subsidiary Company, ‘CREDA-HPCL

Biofuel Ltd’, a joint venture with Chhattisgarh State Renewable Energy Development Agency, has been constituted. CREDA is acquiring land on lease from the Govt. of Chhattisgarh for cultivation of Jatropha which would yield Biodiesel. HPCL would have exclusive rights on the entire produce of Jatropha seeds & would facilitate

production and marketing of Biodiesel across the State of Chhattisgarh. At Pantnagar, in the State of Uttranchal, 5.8 lakhs Jatropha plants have been planted in the first phase. ♦To harness the readily available solar

energy and aid in efforts to develop alternative sources of energy, HPCL has pioneered installation of Solar PV Systems at the Retail Outlets.

Aviation “Primary focus of HPCL in its Aviation business is to continue rendering world class service to the domestic and international airlines and expanding the infrastructure. Approval was obtained from Directorate General of Civil Aviation (DGCA) for setting on wheel facility at 15 airports. Various infrastructure projects for cost effective logistic support were continued and the older equipment were replaced with new ones. Five new Aviation Service Facilities were commissioned during 2008-09 thereby increasing the total network to 21 airports and 2 Defence bases. It is also proposed to set up low-cost mobile refueling facility at

the Ennore Port and Chennai Petroleum Corporation Ltd (CPCL). The total project cost is about Rs.224 Crores. About 27% of the work has been completedand is expected to be completed by Feb 2011.

Renewable Energy “The development of bio-fuels such as ethanol and bio-diesel has been one of the major phenomena of the energy shift so far, marking the first time that alternatives to petroleum have become viable as transportation fuels. Bio-fuels use renewable resources and promote

March 2010

in the near future too. HPCL will pursue its retail strategy of positioning its retail outlets at strategic locations, format and differentiated customer offerings in Urban, Highway and Rural markets across the country. However, expansion of retail network will be carried out judiciously in future to ensure viable operation and avoid cannibalization of the existing network. Our vision for retailing business is to become the most preferred brand in the country leading to sustained growth and improving market share,” said Balakrishnan. Bio-fuel Production few more airports in Tier II cities,” said Balakrishnan.

HPCL’s next Five Year Plan HPCL’s gross sale during 2008-09 was 23.85 MMT. The industry growth during 2008-09 was 3.9%. Taking into account the present economic conditions, HPCL envisages to achieve at least an annual average growth rate of 5% during the next 5 years. Hence it is expected that the market sales volume would reach about 31 MMT by the year 2013-14. “Currently our crude processing capacity is about 17 MMT while the sale is 23.85 MMT. The gap is being bridged by sourcing products from other Indian Refineries and through imports,” said Balakrishnan. HPCL is setting up a 9 MMTPA capacity Refinery at Bathinda in Punjab in collaboration with Mittal Investments Pte. Ltd. The Refinery has been designed to process high sulphur & heavy crudes and also produce value added products viz. Polypropylene. The project is progressing as scheduled and the

Refinery is expected to be commissioned by the first quarter of 2011. Subsequent to commissioning of aforesaid Greenfield project, HPCL will be able to bridge the gap between supply and demand of POL products. HPCL is also setting up a FCCU project of 1.45 MMTPA capacity at MR. In addition, a LOBS project is also currently under implementation to produce 210 TMT lube base stocks conforming to Group II/ Group III. These projects are expected to be completed by mid 2010. This would help in further enhancing the refinery margins by providing value added products. Green fuels project at MR and VR have already been commissioned. This has enabled both the Refineries to produce MS conforming to EURO IV. HPCL is also exploring the possibility for setting up 15-20 MMTPA capacity Green Field Refinery Project to meet the future product demand and be competitive with

HPCL intends to enter into manufacture of Ethanol. In order to achieve this objective, HPCL has already acquired two closed sugar mills at Suguali & Lauriya in Bihar. The projects for manufacturing 60 KL/day Ethanol is under implementation at Sugauli & Lauriya. Necessary approvals for the projects have been obtained and most of the purchase orders have already been placed for both the locations. The projects are expected to be completed by end 2010. This initiative would ensure availability of Ethanol for blending with Petrol and also make the product eco-friendly. Upstream HPCL has forayed into E&P business and has taken initiatives to secure equity oil and gas. HPCL has already been awarded equity in 26 blocks in consortium with other partners which encompasses 4 overseas blocks, one each in Australia & Oman and 2 in Egypt. HPCL is

World Class Refineries.

focusing on acquiring equity in prospective E&P blocks in India & Overseas.

“Retailing is the core business of HPCL and will continue to play a

Gas

dominant role in our domestic marketing

HPCL intends to get into city and

March 2010

commercial gas distribution. HPCL has already set up 1 Mother Station and 15 daughter stations for marketing and distribution of natural gas in Gujarat. HPCL along with GAIL (India) Ltd has also set up JVCs for city gas and commercial gas distribution in the State of Andhra Pradesh and Madhya Pradesh.

HPCL market share Exploration & Production initiatives HPCL has forayed into Exploration and Production (E&P) upstream sector and has taken initiatives to secure equity crude oil and gas by participating in the NELP rounds for E&P blocks offered by Govt. of India, in consortium with E&P Companies. HPCL has been awarded a total of twenty E&P blocks since its participation in NELP-IV round till NELPVI round. In the NELP-VII round, HMEL (a joint venture company viz. HPCL-Mittal Energy Ltd) has been awarded equity in 3 blocks in consortium with other E&P companies. Two blocks i.e. one each in Oman & Australia has been awarded in consortium with other partners. HPCL has also been awarded equity in two blocks in Egypt and PSC is yet to be signed. 2D/ 3D Seismic study and interpretation of the data is under progress. In certain blocks drilling of the wells is also under progress. HPCL intends to acquire equity in prospective overseas E&P blocks which are in exploratory / producing stage in consortium with partners.

AWARDS IN 2009 Few Awards won by HPCL in the last one year: ♦ HPCL has been ranked at 311th

position in the prestigious list of Fortune Global 500 in the year 2008-09. ♦ HPCL has been conferred with the

Award for the Best HR Practices in People Management by the Amity International Business School at recently held Amity Annual Global HR Summit. ♦ HPCL has been adjudged as winner

of the prestigious NIPM (National Institute of Personnel Management) National Award for Best HR practices. ♦ HPCL has been ranked 111th in the

list of the “World’s Most Reputable Companies” in 2009, according to Reputation Institute [RI] in recognition of Corporation’s initiatives taken in various fields such as Corporate Governance, Integrity Pact, Transparency, Customer Delight etc. ♦ HPCL’s Mumbai Refinery, Loni LPG

TOP and Chakan LPG Plant have

Management Award – 2009”, respectively. ♦ Greentech Safety Award: HPCL

Mangalore LPG Import Facility [MLIF] and Raipur LPG Plant have bagged the Greentech Safety Gold Award, while Patna LPG Plant has received the Greentech Safety Silver Award 2009 in Petroleum Marketing Sector for outstanding achievement in Safety Management. ♦ HR Awards: HPCL Director – HR, Shri.

V. Vizia Saradhi has been conferred with ‘Indira Super Achiever Award 2009’ by Indira Group of Institutes. He was also conferred with “Pride of HR Profession” award by Asia Pacific HRM Congress at Global HR Excellence Awards function at Bangalore. At the same forum, HPCL has also been conferred with best “Organization with innovative HR Practices” award for its impact interventions like Samavesh 2008, Competency Development, e-HRM initiatives etc. ♦ Enterprise Connect Award: HPCL has

received the Enterprise Connect Award 2009 which recognizes and rewards Excellence among CIOs.

bagged the Golden Peacock Award – 2009. Mumbai Refinery has bagged the “Golden Peacock Environmental Management Award – 2009” among the Oil Refining Sector and Loni LPG TOP & Chakan LPG Plant have

♦ Greentech Environment Excellence

bagged the “Golden Peacock Occupational Health and Safety Award (GPOHSA) – 2009” and “Golden Peacock Environment

♦ Mysore LPG Plant has won the

Gold Award 2009: Mumbai Refinery has bagged the Greentech Environment Excellence Gold Award 2009 in the Petroleum Refining Sector.

“Greentech Gold Award 2009” in LPG Bottling Sector.

March 2010

This year, the top ten installed power generation capacity states clearly indicates that while the top two states in December 2008 have retained their position with a slight increase in capacity, there are few states which have jumped out. States which have lagged behind in growing or retaining last yearâ&#x20AC;&#x2122;s rating include Andhra Pradesh, Uttar Pradesh and Rajasthan. Here we present a comparison sourced from December 2009 and December 2008.

The Top Ten Installed Capacity (In MW) of Power Utilities in the States as on December 2009

Status Last year (December 2008)

Maharashtra

20858.92

Maharashtra

20289.5

Tamil Nadu

14390.58

Tamil Nadu

14136.3

Gujarat

13564.59

Andhra Pradesh

12088.6

Andhra Pradesh

13396.60

Gujarat

11335.9

Karnataka

10360.39

Uttar Pradesh

9318.4

Uttar Pradesh

9402.93

Karnataka

9135.2

Madhya Pradesh

8323.99

Madhya Pradesh

8274.2

West Bengal

8149.69

West Bengal

7979.4

Rajasthan

7516.26

Punjab

6823.0

Punjab

6857.51

Rajasthan

6423.1

March 2010

We have broken the country in terms of their installed capacity (in MW) of power utilities. Here you will find the Western Indian regions according to their rating, which has been sourced from Central Electricity Authority. The rating is as on December 2009. The rating is the grand total capacity generated from State, Private and Central utilities. Maharashtra Gujarat Madhya Pradesh Chhattisgarh Goa Dadra & Nager Haveli Daman & Diu Grand Total of Western Region

20858.92 13564.59 8323.99 4435.47 380.88 57.60 30.62 49027.47 Source: Central Electricity Authority

March 2010

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

20858.92 MW

Maharashtra

Ownership Sector State

Modewise breakup Thermal Coal Gas Diesel 6800.00 912.00 0.00

Private

1900.00

180.00

0.00

2080.00

0.00

447.00

2204.23

4731.23

Central

2003.05

2623.93

0.00

4626.98

690.14

0.00

5317.12

10703.05

3715.93

0.00

14418.98

690.14

3331.84

2417.96

20858.92

Sub-Total

Total Thermal 7712.00

Nuclear

RES** (MNRE) 213.73

Gr.Total

0.00

Hydro (Renewable) 2884.84

10810.57

March 2010

Maharashtra State Power Generation Company Ltd. (MAHAGENCO) has the highest overall generation capacity and the highest thermal installed capacity amongst all the State Power Generation Utilities in India. In terms of installed capacity, it is the second highest generation company in the country after NTPC. The existing Generation capacity of 9996 MW comprising 6800 MW Thermal, 2344 MW Hydel & 852 MW Gas turbine shows its balanced portfolio. Further, this capacity is expected to reach upto 10496 MW after successful coal firing very soon at our Parli & Paras Project, each of 250 MW before 31st March 2010. Subrat Ratho, MD, MAHAGENCO shares his views on the latest development in the power generation capacities of Maharshtra, it future and the reasons for the success that MAHAGENCO has been able to achieve.

“

The erstwhile MSEB & now MAHAGENCO have contributed a lot for overall industrial, commercial & agricultural development of Maharashtra. We generate Power for more than 1,30,000,00 end consumers in Maharashtra at economical & affordable rates, in-line with the vision and mission of our company. With improved management and operational-maintenance 69

practices; we are trying hard to achieve “best-in-class” performance. At the time of formation of the company by unbundling MSEB, it was necessary to plan at two levels in order to fulfill our mission, considering the probable competition of the private and other companies in the field of power generation and the needs of Maharashtra. At the first level, a short term plan was formulated to generate maximum power at minimum costs from available installed capacity. At the second level, a medium term plan was formulated to increase generation capacity by commissioning brown-field expansion projects. Considering the ever increasing demand for electricity in Maharashtra, a rapid action was initiated for project planning and related work. As is known, the minimum gestation period for a power generation project is 4 to 5 years. So rapid action was initiated in all the necessary activities like land acquisition for projects, provision of water, machinery, transport, procurement of fuel linkages and environment clearances etc. MAHAGENCO has also introduced latest technologies at its existing power projects. Thus, on the one hand we are actually implementing our ambitious capacity addition programme. On the

the last 2 years. Even our old thermal units are performing well. As we had already tapped most of the hydro potential in this state, we realized that here onwards, we have to concentrate on enhancing our thermal strength. Several changes were implemented in the traditional operational practices of power generating stations and the sets therein. Annual maintenance work of the sets was streamlined. The average completion period of annual maintenance work was reduced to 25 days instead of 30 days without any compromise with quality. Similarly, capital overhauling is now done within a period of 35 days instead of earlier period of 45 days. A special task force was set up to minimize boiler tube leakage problem. Many remedies were implemented as per the expert guidance of BHEL Co. As a result proportion of tube leakage came down from 3.89% to 2.96% (07-08) and this year it is further reduced to 2.41% (08-09). Subsequently, availability of sets, which was 82.11% in the year 2006-07, improved to 87.58% in 2007-08 has now improved to 88.4% (08-09). Further, percentage of forced outages reduced to 4.08% in (2008-09) in comparison with 4.36% in (07-08). Our main hurdle was getting quality

other hand, we are trying to generate maximum possible power from our existing Gen-sets by utilizing available quality and quantity of coal. It is pertinent to note that even though most of our units are very old, we have

coal in required quantity and hence, we have concentrated our focus on the same. MAHAGENCO signed agreements with various coal producing companies to ensure the quantity and quality of the coal for its power stations. Earlier, M/s.

increased generation through them in

Western Coal Fields Company was the

March 2010

main supplier and the quality of coal supplied by it is relatively poor. Continuous efforts were made to get coal of better quality from other companies also viz., South-eastern Coal Field, Mahanadi Coal Fields and Singarani Coal Co. etc.

Completion of the Panvel-Uran spur gas pipeline helped us to procure gasfuel from new sources. As a result generation from this gas-based powerstations has improved now. For our existing Gas Power Plant at Uran, we

We have tried and are trying to minimize power consumption at power stations. Auxiliary power consumed by the generating sets has also been considerably reduced so that more power is now available in the grid in compari-

Simultaneously, use of washed and imported coal was also launched in many power stations, to increase the loadability of it’s sets. All these efforts led to improvements in power generation despite the large number of vintage power stations of MAHAGENCO.

have tried our best to obtain adequate gas-linkage for maximum possible generation. Last year we have signed up long term contract with M/s. Reliance for supply of 1 MMSCMD Gas for next 5 years for Uran GTPS. As a result, our Uran GTPS achieved a record generation since

son with the past. MAHAGENCO has successfully set up a ‘Generation Control Room’ at the Head Office using latest technology. All major power stations of MAHAGENCO are now connected with this GCR, which will help us to monitor on the basis of real time generation.

last 10 years recently. MAHAGENCO INSTALLED/DE-RATED CAPACITY AS ON 31.12.2009 Power Station

Units & Size

Installed Cap.

De-rated Cap.

Proposed De-rated Cap.

+ 2*210

1100

1040

960

NASIK 1 TO 5

2*140 + 3*210

910

880

840

BHUSAWAL 1 TO 3

1*62.5 + 2*210

482.5

475

470

PARAS 2 & 3

1*62.5+ 1*250

312.5

305

PARLI 1 TO 6

2*30 + 3*210 + 1*250

940

920

4*210

840

4*210 + 3*500

2340

2300

6925

6800

6635

3*60 + 4*108

612

2*120

240

852

7777

7652

HYDRO CAPACITY

2344

MAHAGENCO TOTAL(A+B+C)

10121

9996

9831

THERMAL P.S. KORADI 1 TO 7

K'KHEDA 1 to 4 CHANDRAPUR 1 TO 7 MAHAGENCO THERMAL

4*120 + 1*200

GAS TURBINE P.S. URAN G.T. W.H.R. 1&2 MAHAGENCO GAS MAHAGENCO TOTAL (Th. + Gas)

March 2010

Latest Activities As mentioned earlier, our main concentration is on the target of completion of our ongoing projects as per schedule or even before schedule. By vigorous follow-up from our side, we are interacting continuously with M/ s. BHEL for getting supply of main plant equipments from them in scheduled time. This has been a challenging task and our projects at Parli & Paras have got delayed because of failure of BHEL to supply equipment in time. We are also speeding up various activities in concern with our other planned projects i.e. Getting Various Clearances, Tendering Process, Issue of L.O.A. etc. Supply of adequate fuel for power plant is one of our major constraints. In fact, as far as our main fuel supply (obviously coal) is concerned, we are suffering a lot both in terms of quality & quantity. Anticipating our future requirements and coal crisis, we have already established a joint venture company namely ‘MAHAGUJ Collieries

RE Source

Potential

Ltd’ with Gujarat State Power Co. Ltd. for captive coal mining. In future, we are expecting our own captive fuel supply for some of our plants from these coalfields allotted to us at Machhakatta & Chendipada in Orissa and at ‘Bhivkund’ in Maharashtra State. MAHAGENCO is one of the few state utility Companies which has implemented the concept of ‘Captive Mining’, to ensure long term coal availability to our Power Stations and for partial self reliance in terms of fuel availability. Further, to meet with present challenges, we are using washed coal & imported coal to improve loadability of our units & to minimize breakdowns in our power plants. In line with our huge capacity addition programme, MAHAGENCO is giving due importance to HR component of the organization. We are going in for a massive recruitment drive for skilled Engineers & Technicians. In parallel, we are trying our best to enhance technical and managerial skills of our existing employees by implementing an improved training programme.

Potential in

Achievements

in the Country Maharashtraas on 31/01/2010 (MW)

(MW)

Wind Power Projects

45000

4584

1997.335

Small Hydro Projects

10324

600

211.325

Biomass Power Projects

16000

781

87.00

Bagasse Co-generation Projects

5000

1250

140.00

MSW & Liquid Waste

1700

287

0.000

Industrial Waste

1700

350

6.125

79424

7852

2441.785

Current power plants MAHAGENCO’s existing Generation capacity is 9996 MW comprising 6800 MW Thermal, 2344 MW Hydel & 852 MW Gas turbine. Most of our thermal units are more than 25 years old. To enhance their efficiency we have taken R&M Programme. Accordingly, Renovation and Modernization (R & M) of sets of 210 MW capacity, at Koradi, Nashik, Parli, Bhusawal and Chandrapur power stations will be undertaken in the 11th Plan. World Bank and KFW Germany have agreed in principle to finance this R & M Scheme. Accordingly, Koradi U-6 and Nashik U-3 (Each 210 MW) are expected to be completed by December 2012 and July 2013 respectively. Similarly, R&M Work for 210 MW units at Chandrapur, Parli, Bhusawal is expected to be completed by 3-4 years. After completion of R&M, we can enhance present derated Generation rating (about 180-185 MW) to 215 MW per unit i.e. increase of 35 MW per unit and subsequently we can increase in Plant Load Factor (PLF) from existing value of 70-75 % to minimum 85 %. ♦Renovation & Modernization and Life

extension of old units below 210 MW has been dropped by MAHAGENCO on techno-economic grounds due to overageing of units. It is not cost effective, requires very long shutdown and goes without single point guarantee. ♦PPMS and ERP are under implementa-

Total

tion. MAHAGENCO is continuously taking

March 2010

started power generation through each one set of 250 MW at Parli and Paras Expansion. Recently, trial synchronization and subsequent coal firing at 250 MW at Parli was successfully completed. Similarly, coal firing at 250 MW at Paras project is scheduled in this week. We expect these two sets to run on full load each of 250 MW within next few days.

efforts to cut down the maintenance period of break down units by adopting innovative ideas. Similarly, under the ‘Replacement Project Planning’ our vintage sets will be replaced by new sets of more capacity and latest technology. A phase-wise scheme of installation, using available resources has been prepared. There are two major issues when we attempt a revamping and modernization programme. One, most of the plants are very old and the second is; taking into consideration the demand of power, whether we should take them out for maintenance or replace them for better generation. Recently, a detailed study had been conducted by CPRI for our old vintage units and according to their recommended optimum performance parameters, we are trying our best to achieve it.

Further, as far as our other on-going ambitious power projects are concerned, MAHAGENCO is also working hard to complete its prestigious power projects of 500 MW each at Bhusawal (2 sets of 500 MW), Khaperkheda (1 set of 500 MW) and Chandrapur (2 sets of 500 MW), Parli (1 set of 250 MW as replacement Unit) and replacement unit at Bhusawal of the capacity of 660 MW unit. If things go smoothly as per the schedule decided, we will be able to complete these projects within the coming 2-3 years. Actually, 500 MW projects at Bhusawal and Khaperkheda are expected to generate power in 2010 – 2011 itself. It is to be noted that in line with the ambitious plan of our capacity addition, we are making intensive efforts for our other projects also. We have issued L.O.A. to M/s. L&T, Vadodara for main plant packages for 3 super critical units of 660 MW at Koradi out of which 1 unit

In the first phase of our capacity addition programme, we have already

Thus MAHAGENCO has a historic plan for capacity addition by investing about. Rs. 70,000 Cr. in the next 11th & 12th five year plans. A total of 5230 MW projects are under implementation by MAHAGENCO. Further, other projects totaling to around 6780 MW capacity are also planned by MAHAGENCO, where preliminary project activities like feasibility reports, clearances etc. are going on. At DHOPAVE, we have planned to set-up a coal based coastal project of 1600 MW (2 Units of 800 MW) with super critical technology. We have also planned for coal unloading jetty for this plant. 50% imported coal and 50% Indian coal will fulfill the fuel needs of this plant. The estimated cost of this project including IDC is Rs. 10,400/- Crores. As far as, various clearances for this project are concerned, MAHAGENCO has obtained N.O.C. from Forest Department, Mining Department, and State Pollution Control Board. Environmental clearance for main plant and jetty is expected by March 2010 and July 2010 respectively. Dondaicha (5x660 MW), Bhusawal Replacement Unit (660 MW) are the

At present, there is severe shortage of Gas fuel for power plants all over the

other major thermal projects we have planned. It also includes 1220 MW from Uran Gas Expansion Project (subject to availability of adequate gas at affordable rates). MAHAGENCO has a total Capacity Addition Programme of 12010 MW by

country. However, in future, if we will be

2017-18.

will be the replacement unit.

Future plans

able to ensure adequate fuel gas linkage at affordable rates, we are going to expand our existing gas power station at Uran where Unit 9 will add 814 MW and Unit 10 will add 406 MW.

March 2010

It is noticeable that, abreast of the rapidly deteriorating fossil fuel conditions and taking into consideration the consequences of fossil fuel based electricity generation in terms of Climate Change, Mahagenco has accorded high priority for Renewable Energy and towards this, had decided to establish a 1MW Grid Connected Solar PV Power Plant at Chandrapur. Last year, Mahagenco has placed the Letter of Award to M/s. Moserbaer India Ltd., one of the leading manufacturers of Solar Photovoltaic Modules and Systems in the Country. The plant is expected to be completely commissioned in the next 1-2 months period and estimated to generate about 1.5 million units per annum. This is the first step by MSPGCL in its objective to bring in a substantial share of Renewables in its energy portfolio in line with the objectives set for the Nation through “National Action Plan on Climate Change”. Initially, this step towards nonconventional will be on experimental basis. However, we are seriously thinking to multiply this activity.

Renewable energy sources The renewable energy potential in the state has been estimated by MNRE. The potential and the status of achievement in the state may increase with the advancement in renewable energy technologies. Maharashtra Energy Development Authority (MEDA) is the nodal agency in the state for achieving this goal. MEDA’s Vision for future is as follows ♦ Endeavor to achieve Renewable

energy generation to the extent of 10% of the gross energy generation in the State by 2015, in consonance with the guidelines contained in the National Action Plan to Climate Change (NAPCC). ♦ To achieve this, Suitable improvement

in policies and incentives to encourage Renewable Energy Projects, especially Solar Energy to be put in place. ♦ Exploration of the potential of Geo-

thermal energy in the State by 2015.

“State Level Energy Conservation Committee” is being re-constituted. To enable the activities of energy conservation, a separate Energy Conservation Fund is being established. Innovative demo projects on energy conservation with the help of Bureau of Energy Efficiency, Govt. of India are being implemented in the State.”

The renewable energy potential in the state has been estimated by MNRE. The potential and the status of Wind Power projects in the country is 45000 MW, while the potential of wind power in Maharashtra is 4584 MW. The achievement as on 31/01/2010 is 1997.335 MW. With the advancement in renewable energy technologies the potential in the state will definitely increase.

♦ With a view to create and propagate

the culture of energy conservation,

In all, it will be seen that from the year 2005 onwards, the State has successfully planned to enhance generation capacity in next 4-5 years in such proportion which is equivalent or even more than the generation capacity installed in last 50 years. These projects are not only on paper but are being rapidly taking shape at various sites.

March 2010

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

13564.59 MW

Gujarat

Ownership Sector

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 4190.00

Gas 892.72

Diesel 17.28

Thermal 5100.00

0.00

(Renewable) 772.00

(MNRE) 24.30

5896.30

Private

980.00

2577.50

0.20

3557.70

0.00

1618.11

5175.81

Central

1508.89

424.27

0.00

1933.16

559.32

0.00

2492.48

6678.89

3894.49

17.48

10590.86

559.32

772.00

1642.41

13564.59

State

Sub-Total

Modewise breakup Thermal

March 2010

Gujarat has had a unique identity of its own. Despite of all its controversies of the past, the state has been surprisingly ahead in terms of development and economic growth, which is otherwise contrary to the people’s imagination. Thanks for its power sector, whose generation capacity has increased to 13564.59MW, which was crucial for its economic sustenance. In addition to its existing capacity the Gujarat Government has taken steps to add 10752MW of power through four more new projects during the 11th five year plan.

hough incorporated in the

year 1993, GSECL had originally began its activities long before under Gujarat Electricity Board which was registered under the Companies Act, 1956. Today, GSECL’s main focus is to initiate the process of restructuring Power Sector and to

Government of Gujarat (GoG) had bestowed a free hand to GSECL by giving the status of Independent Power Producer (IPP). This status enabled the corporation to make its own approvals to undertake new power projects in the

subsidiaries of a holding company, Gujarat Urja Vikas Nigam Limited (GUVNL). GUVNL is also the single bulk buyer in the state as well as the bulk supplier to distribution companies.

Not until March 2005 GSECL had fully got hold of GEB’s activities before it was completely unbundled. Assets of the

In just a span of decade’s time after the country’s economic liberalization the Industrial sector in the stat has seen a rapid growth. The need for Power has become one of the basic infrastructures

Board were disaggregated into six companies – One each in Generation and Transmission and Four in Distribution. As a part of the above exercise, all the generation plants of GEB have been transferred to GSECL.

necessities for the Industries and socio economic development in the State. The installed capacity of the State had increased from 315MW in 1960-61 to 9561 MW in 2006-2007. Per capita consumption of power in the State in

state.

Today, GSECL has taken up the complete responsibility of electricity generation in the state. Electricity

2005-06 was 1313 Units (as per CEA revised formula). As it is, Gujarat has been remained

Transmission has been entrusted to the already existing company - GETCO. Distribution network in the state has been split up among four distribution companies, which cater to the northern, central, southern, and western parts of

as leading power generating state in India and always leapt forward along with development in power sector. During the year 2008, Gujarat had total installed capacity of 10185 MW constituting 7.11% of all India Generating

the state respectively. All these companies have been structured as

capacity.

mobilize resources from the market to add up to the existing generating capacity of the State and improving the quality and cost of power generation. In a step forward to restructure the electricity infrastructure in Gujarat, GSECL had envisaged a wide spectrum of activities under the Memorandum and Articles of Association. GSECL has initiated its activities focusing more in the field of Power Generation. Further catalyzing the restructuring process the

March 2010

Existing Power Plants (as on 2008) Name of Power Stations Thermal Power Stations Gandhinagar Thermal Power Station Ukai Thermal Power Station

Wanakbori Thermal Power Station Sikka Thermal Power Station Dhuvaran Thermal Power Station Gas Based Power Stations Dhuvaran GBCCPP Unt-I Dhuvaran GBCCPP Unt-II Utran Gas Based Power Station (STG)

No. of Units

Total MW/ Station

2x120 3x 210 2x120 2x200 1x210 7x210

870

850 1470

2x120 2x110

240 220

1x67.85 1x38.77 1x72.51

107

1x39.94 3x30 1x45

112.45

The hydro and renewable sources contributed 772 MW to the total capacity. In pursuit of fresh capacity addition, Lignite Based 75 MW unit No. IV at KLTPS, Panandhro, was expected for commissioning in July, 2008. While 112.45 MW Dhuvaran CCPPII is under Commercial Operation since November 2007. The 370 MW Utran Gas Based CCPP-II is under execution and

135

more than 57% project work is completed.

215

Performance of GSECL

Ukai Hydro Power Station 4x75 Kadana Hydro Power Station 4x60 Ukai left Bank Canal Hydro Power Station 2x2.5 Panam Canal Mini Hydro Power Station 2x1 Total 4766.45 Power Projects under Implementation (as on 2009)

300 240 5 2

The total revenue for the year as on March 2009 was Rs. 7323.51 Crores, while total operating expenditure for the year was Rs. 6629.79 Crores. The profit before interest and tax is Rs. 693.72

Kutch Lignite Thermal Power Station Utran Gas Based Power Station Sikka Coal based Power Station Ukai Coal based Power Station Total

75 370 500 500

Lignite Power Station Kutch Lignite Thermal Power Station

2x70 1x75

Hydro Power Stations

There has been significant improvement in the growth in actual generation over few years. As compared to annual growth rate about 3.1% at the end of 9th Plan / initial years of 10th plan, the growth of generation during 2007-08 was of the order of 6.3%. The per capita consumption of electricity is increased from 613 Kwh per year during 2004-05 to 672 kwh during 2006-07 and it is

Sector generating stations. The power added from Thermal power stations was10590.86 MW and about 559.32 MW were added from the Nuclear power stations in the state.

1 x 75 1 x 370 2 x 250 1 x 500 1445

Crores.

targeted to achieve per capita consumption of 1000 kwh per year by 2011-12. The total generating capacity available for the state as on 31st December 2009 was 13564.59 Mega Watts. This comprises of 5896.30 MW of power from GSECL’s own generating stations, while 5175.81 MW are added from the Private Sector Power Plants and 2492.48 MW as Share from Central

Depreciation and interest are Rs. 333.71 Crores and Rs.278.59 Crores respectively. The profit was Rs. 82.01 Crores. The year 2007-08 was another excellent year of performance for the Company. Total generation from Company’s Power stations during 200708 had increased to 28241 MUs against 27425 MUs the previous year. The projects taken up by GSECL as a part of capacity addition of 10752 MW during 11th Five Year Plan envisaged by Government of Gujarat. ♦ 2X250 MW Imported Coal Based Exten Unit 3 & 4 at Sikka TPS.

March 2010

♦ Capacity : 500 MW ♦ Fuel : Coal ♦ Environment clearance : Application submitted to MOEF & DoEF. ♦ EPC contractor: BHEL has submitted offer and under scrutiny. ♦ Commissioning Schedule : Expected by end of 2010 370 MW Gas based CCPP at Utran, Dist. Surat ♦ Capacity : 370 MW ♦ Fuel : Natural gas (base fuel) / LNG ♦ Environment clearance : All statutory clearances received ♦ 370 MW Gas Based CCPP at Utran Stage-II.

All major Balance of Plant (BOP) orders placed.

♦ 395 MW Gas Based CCPP at Dhuvaran Stage-III.

♦ 500 MW Coal Based TPS Extn Unit 6 at Ukai.

• Boiler drum lifting – 16.11.05

Status of the GSECL’s Projects

• Condenser placed on foundation– 9.10.06

• en.Stator placed on foundation-

75MW Lignite based KLTPS Project (Unit IV) in Kutch ♦ Capacity MW : 75 MW ♦ Fuel : Lignite ♦ Environment clearance : received ♦ Awarding contract: Order placed for the main plant equipment., Advance payment made to BHEL and Zero data achieved on 28.3.04. ♦ Commissioning Schedule : Present Schedule of commissioning - by December 2008 ♦ Present Status of Project :

Order for supply and erection of main plant is placed on to BHEL.

Following important activities completed.

29.10.06 ♦ Test Synchronization is successfully completed on 22/10/2008 2 X 250MW Imported Coal based Power Project at Sikka ♦ Capacity : 500MW (2 x 250MW each) ♦ Fuel : Imported Coal ♦ Environment clearance : Received from MoEF, New since 24.5.05. ♦ Commissioning Schedule :

1st Unit by January 2010

2nd Unit by May 2010

500MW Coal based TPS Extn Unit 6 at Ukai

♦ Commissioning Schedule : August 2009.

The total generating capacity available for the state as on 31st December 2009 was 13564.59 Mega Watts. This comprises of 5896.30 MW of power from GSECL’s own generating stations, while 5175.81 MW are added from the Private Sector Power Plants and 2492.48 MW as Share from Central Sector generating stations. The power added from Thermal power stations was10590.86 MW and about 559.32 MW were added from the Nuclear power stations in the state.

March 2010

8323.99 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Madhya Pradesh

Ownership Sector

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 2807.50

Gas 0.00

Diesel 0.00

Thermal 2807.50

0.00

(Renewable) 1703.66

(MNRE) 71.76

4582.92

Private

0.00

216.05

Central

1474.60

257.18

0.00

1731.78

273.24

1520.00

0.00

3525.02

4282.10

257.18

0.00

4539.28

273.24

3223.66

287.81

8323.99

State

Sub-Total

Modewise breakup Thermal

March 2010

Madhya Pradesh’s installed generation capacity is 8323.99 MW for the month of December 2009 with the state sector contributing 4582.92 MW, Private sector contributing 216.05 and Central sector contributing 3525.02 MW.

verage evening unrestricted

demand for the month of May 08 was 5125 MW and shortages were around 1122 MW. During May 08, 24 hours supply provided to the industries, average 22.45 hours supply provide to the Commissionery, 19.45 hrs to district and 16.35hrs to tehsil headquarters whereas about 12.40 hrs supply extended to rural areas. For the year 2007-08 the provisional sales to Industry, Agriculture and Domestic segments were 5278.20, 6472.92 & 4271.93 MU respectively.

MW has been proposed to retire and approval of the 800 has been conveyed to Govt. of M.P. for their final approval which is awaited. An extension unit of 210 MW is to be synchronized in the month of June, 08 ♦STPS, Sami – This thermal power

Co.Ltd(MPPGCL) was 14612.34 MU and that of State Joint Venture – Indira Sagar Omekareshwar & Sardar Sarovar was 5888.04 MU.

Thermal power stations ♦SGTPS, Birsinghpur – This thermal

power station has 4 units of 210 MW each. Of late a unit of 500 MW was synchronized in the month of June 07. The COD of the said unit is yet to be declared. ♦ATPS, Chachai – This thermal power

station has 4 units of 30 MW, 20 MW & 2×120 MW. The first ‘2 units of 30/20

♦First Unit – May, 2013 ♦Second Unit – December, 2013 ♦Third Unit – July, 2014 ♦Fourth Unit – February, 2015

station has 9 units which consists of

Sector-wise power bought during FY 08 is as follows (provisional) Sector MPPGCL State Joint Venture (NHDC) & Sardar Sarovar Central Sector Share (ER+WR) Others (DVC, Bilateral, Captive, Wind, UI, Short Term ets.) Total

Energy in MU 14612.34

Rs.(In Cr.) 2280.26

Rs. Per Unit 1.56

5888.04

938.18

1.59

13669.3

2930.82

2.14

962.98

427.67

4.44

35132.66

6576.93

1.87

5×62.5 MW, 200 MW and 3×210 MW. A further extension of unit No. 10 & 11 of 250 MW capacity is envisaged to be commissioned in the year 2011-12.

Transmission losses Power generated during FY 08 by MP State Sectors - MP Power Generating

The phase wise CoD of each unit is given below :-

Transmission losses for FY 08 were 4.09%.

Power Purchase Agreements (PPAs) The agreement with M/s PTC (for Lanco – Amarkantak Pvt. Power limited at Pathadi in Korba) for 300 MW was executed on 30th May 2005 as per terms of the agreement, date of commercial operation of the above power plant was 36 months from the date of financial closure i.e. Septemeber, 2008 and the agreement with Sasan Power limited for 1500 MW was executed on th August, 2007.

♦Fifth Unit – September, 2015 ♦Sixth Unit – April, 2016

The state receives a total of 2102 MUs each year (considering 80% PLF) from PTC Lanco – Amarkantak Private limited and 10512 MUs each year (considering 80% PLF) from Reliance’s Sasan Power limited. The levelized tariff for PTC’s Lanco – Amarkantak Pvt. Limited is Rs.2.20 per unit (capped) and the levelized tariff for Reliance Sasan Power limited is Rs. 1.1.96 per unit.

Generation Achievements ♦During the last 4 years capacity

addition in the State was 2937 MW. This increase was about 100% over the capacity available in December 2003. Capacity addition since December 2003 is as follows:

March 2010

Sources, Non-Conventional Energy Policy has been issued by the State Government giving lucrative incentives to the developers. Tariffs have also been notified by MPERC for wind and biomass project. 20 paise cess on captive power generation is completely waived off to encourage captive generation.

Way forward ♦ Capacity addition of 5740 MW has

been planned during the 11th Plan.

Transmission Achievementss ♦ Capacity addition in transmission

Indira sagar Hydel Project - 1000 MW

Sardar Sarovar Hydel Project (MP Share) - 826.5 MW

Omkareshwar Hydel Project - 520 MW Sanjay Gandhi Thermal Power House - 500 MW

Banasagar Hydel Project - 20 MW

Marhikheda Hydel Project - 60 MW

Bergi Left Canal Hydel Project-10 MW Total capacity available for the State

M.P. Genco Thermal: 2647.5 MW

M.P. Genco Hydel: 922.62 MW

State Joint Venture – Narmada Project: 2358.7 MW

Central Sector Share: 2035.13

Coal linkage & Environment clearance pending with Gol. State is facilitating the ultra mega power project at Sasan being executed by M/s Reliance Power. Water has already been allocated and for allocation of land, actions are in advanced stage. Advance possession of

2×250 MW Satpura Thermal Power extension units are planned for

commissioning in 11th Plan. Order for main BTG package has been placed on M/s BHEL and initial advance released.

608 Ckt Kms 400 KV lines

1444 Ckt. Kms 220 KV lines

1523 Ckt Kms 132 KV lines

290.16 hectare of land already given to the company.

and to provide assistance to the private developers, GoMP has entered into MoU with 23 companies for 26800 MW capacity merchant power plants. Major companies are M/s Jaypee Power Venture, M/s Esser, M/s Reliance, M/s SJK, etc.

Way forward ♦Transmission expansion plan during

the 11th Plan period – Rs. 3948 crore.

Sub-transmission & Distribution Achievements ♦Physical progress during the 10th Plan

To harness hydel potential and to encourage green power, a Policy for

development of small hydro projects for the state has been- notified by the State Government. To encourage capacity addition through Non-conventional Energy

In order to improve the voltage profile and to compensate the lagging power factor, shunt capacitor of 350 MVAR on 132 KV and shunt capacitors of 380 MVAR have been installed on 33 KV systems.

In order to facilitate private investment in power generation projects

MW Brief Status of ongoing projects

during the last 4 years

Period.

Erection of 33KV lines – 4349 kms.

Addition of 11 KV lines – 5994 kms.

Installation of power transformers – 610 Nos.

March 2010

Installation of distribution transformers -18038 Nos. 24 hours supply provided to the

industrial consumers during the last 3 years.

Average three phase supply in rural areas during rabi season was 10 to 13 hrs. per day.

AT&C losses have been reduced by 12% since the power sector reforms initiated in the state in the 2000-01 (AT&C losses at present 47% and target for 201 1-12 – 30.20%)

With the better management and proper maintenance, failure rate of distribution transformers reduced by about 10% during last 5 years.

Tariff subsidy provided to the agricultural consumers ♦The State Government provided

tariff subsidy for agriculture consumers in the following manner to isolate the agricultural consumers from the impact of the tariff hike by the Commission: State Government has decided to further reduce the cost of subsidized agriculture power from 1st April 2008 from 120 paise per unit up to 300 units per month and 170 paise per unit above 300 units to 75 paise per unit up to 500 units consumption and 110 paise per unit above 500 units per month consumption. Estimated subsidy for the year 2008-09 is Rs. 1234 crore. Schemes for the benefits of the consumers ♦State Government has implemented a

scheme to give relief to the agricultural pump consumers in clearing their old dues. As per the scheme, 50% of the old arrears have to be paid by the consumers and for the balance 50% ,

Year 2004-05 2005-06 2006-07 2007-08

Agricultural Subsidy (Rs. in Crs. 811 473 514 633

the State Government would compensate the Discom. Apart from the 50% relief on the principle amount, the surcharge on the consumers would also be waived off by the Discoms. A provision of Rs. 700 crares has been kept in state budget for the year 200809 towards above 50% relief on energy charges. ♦Agricultural consumers have been

allowed to pay energy bill in advance twice, on six monthly basis.

Ongoing Projects Satpura Extn. Units 10 & 11 (2X250 MW) ♦ Estimated Project Cost (Revised)

Rs 3032.34 Cr ♦ Funding- Equity 20% & Debt 80% ♦ Equity Rs 527 Cr provided by GoMP ♦ Debt Rs 1878.2 Cr tied up with PFC.

For balance Rs 548 Cr, matter taken up with PFC & is under active consideration. ♦ Expenditure till 31/01/10 Rs.207.05

Crore Shree Singaji TPP Units 1&2 (2X600 MW) ♦ Estimated Project Cost (Revised)

Rs 6750 Crore

♦For the feeder bifurcation works in the

♦ Funding- Equity 20% & Debt 80%

rural areas the State Government has provided Rs. 100 crore in the year 2008-09 Budget. This will facilitate better power supply to rural households.

♦ Equity Rs 1350 provided by GoMP

♦In order to provide new permanent

pump connections, scheme has been launched by the State Government for which Rs. 50 crore have been allocated in the budget for the year 2008-09. For the small farmers, the State Government will pay 75% of the amount of the work while for the other farmers; provision of 60% payment has been made in the scheme for line extension works, etc. Rural Electrification ♦Under the Rajiv Gandhi Grameen Vidutikarn Yojana, Schemes for all 48 districts have been submitted to REC. Out of which, 30 schemes have been

sanctioned and funds released only against 8 schemes.

♦ Debt Rs 3242 tied up with PFC. For

balance Rs 2158, matter taken up with PFC & is under active conbsideration. ♦ Expenditure till 31/01/10 Rs.397 Cr.

Status of Proposed Projects ♦ Khandwa Super Thermal Power Project

(2x800 MW), Distt. Khandwa ♦ Shree Singaji Thermal Power Project-

Stage II (2 X 660 MW or 2 X 600 MW), Purni, Dist. Khandwa. ♦ Bansagar Super Thermal Power

Project (2x800MW), Tikuratola, Distt. Shahdol ♦ Sanjay Gandhi Thermal Power Station

(Phase II- 2X 500 MW or 1 X 500 MW or 2 X250 MW), Birsingpur, Umaria. ♦ Chandia (2 x 600 MW or 2 X 800 MW)

Super Thermal Power Station Distt: Katni. March 2010

March 2010

The Southern region is by far the most contributing sector in the country with three States in the top 10 and generating a total of 38147.57 MW. The rating is as on December 2009. The rating is the grand total capacity generated from State, Private and Central utilities.

Tamil Nadu

14390.58

Andhra Pradesh Karnataka Kerala Puducherry Grand Total of Western Region Source: Central Electricity Authority

13396.60 10360.39 3553.78 255.81 41957.16

March 2010

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

14390.58 MW

Tamil Nadu

Ownership Sector

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 2970.00

Gas 523.20

Diesel 0.00

Thermal 3493.20

0.00

(Renewable) 2108.20

(MNRE) 85.55

5686.95

Private

250.00

503.10

411.66

1164.76

0.00

4760.56

5925.32

Central

2299.81

0.00

2299.81

478.50

0.00

2778.31

5519.81

1026.30

411.66

6957.77

478.50

2108.20

4846.11

14390.58

State

Sub-Total

Modewise breakup Thermal

March 2010

Tamil Nadu the southern most state of India is bestowed with bounty of natural resources. More so to say it is blessed with perennial rivers like Kaveri, bhavani and Palar which all are helping the state to usher the Hydro power potential. The thermal power generation capacity of the state too is the highest which is further supplemented through nuclear and renewable sources like solar and wind energy systems. The installed capacity of the state has increased to 15409.55MW as on Feb. 2010 from 14390.58 MW in just 3 months. In comparison to other States in India, Tamil Nadu ranks first in the highest capacity of 4599.55 MW of Wing Energy Generating Station.

eeting the energy needs triggered by economic

development is a formidable challenge. Tamil Nadu has accordingly focused on demand management and addressing supply constraints to provide energy of desired quality to users in a sustainable manner and at reasonable costs. Further, to sustain the aspiration growth rate of 8-10 per cent, the quantity and quality of energy requirement would tend to increase over the 11th Plan Period. Of all the available energy sources, electricity is considered as the prime source and the same has to be supplied at a reasonable rate in an 85

uninterrupted manner by ensuring the quality, availability of electricity is directly linked to the growth process of the economy. Hence, the State and Central Governments allocate a considerable portion of the plan outlay for

Ltd and two subsidiary companies, namely Tamil Nadu Transmission Corporation Ltd (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) with the stipulation that the aforementioned

strengthening the base of this sector. The plan allocation for power sector in the State at Rs.30.28 crores during the First five year plan period had increased to Rs.8029.65 crores during the Tenth Plan period. The elasticity of demand for energy in the State with respect to GSDP

companies shall be fully owned by Government.

between 1993-94 and 2004-05 was 0.57 and that of per capita power consumption and per capita income was 0.76. Giving the latest insights in to the present power generation scenario of the state, Thiru C.P. Singh, Chairman, TNEB says, “The installed capacity of power

Sector State

Conventional Source Hydro Thermal 2096.30 3486.00

Central 0.00 Private 0.00 Total 2096.30

3130.00 1394.00 8010.00

Flagship Programmes of GOI TNEB is in the process of implementation of IT based distribution reforms in 110 towns with a population of over 30,000 with an investment of RS.417 crores under RAPDRP Scheme. TNEB is in the process of effecting free service connections to below poverty line house holds of 5.24 lakh families with an investment of Rs. 447.41 crores under RGGVY Scheme.

Renewable Energy Source Grand Total SHEP WEGS Co-Gen Bio Mass 89.70 17.55 0.00 0.00 5689.55 0.00 0.00 89.70

utilities in Tamil Nadu as on February2010 is 15409.55 MW. The contribution towards TNEB is 5689.55MW. The main attributes that has helped the Board achieve exceptional capacities are Wind Energy Generating Stations. In comparison to other States in India, Tamil Nadu ranks first in the highest capacity of 4599.55 MW of Wing Energy Generating Station.”

Latest activities of TNEB Currently the state of Tamil Nadu is in the process of unbundling of TNEB. It is being reorganized by establishment of one holding company, by the name TNEB

0.00 4582.00 4599.55

0.00 487.00 487.00

0.00 127.00 127.00

3130.00 6590.00 15409.55

Existing Thermal Power Stations Of the total 2970 MW from four thermal stations namely, Ennore TPS (450), Tuticorin TPS (1050MW), Mettur TPS (840 MW) and North Chennai (630 MW) are located in the State. TNEB’s oldest thermal unit is the Ennore thermal power stations. This plant has four units with capacity 2 units of 60 MW and 3 units of 110 MW, commissioned in 197073. In recent years, renovation and modernization projects have helped in improving the plant performance. After completion of R&M works, yearly

March 2010

generation of 2032.41 MU has been achieved in the year 2007-08 with a PLF of 51.42%which is the highest in the last 12 years and surpassing the previous record of 48.8% achieved in the year 1997-98. The Mettur Thermal power Station, with 4 units of 210 MW each, aggregating to 840 MW, was established between 1987 and 1990. This plant has bagged Bronze shield from CEA for outstanding performance in 2005-06. The Tuticorin Thermal Power Station, with 5 units of 210 Mega Watts each, aggregating to 1050 Mega Watts, was established between 1979 and 1991. This plant has

Hydro Power Stations The first hydro plant at pykara was commissioned in 1932 with the assistance of British Engineer Sir.Howard in the Nilgiris District. TNEB’s 36 hydro power stations are located along the Cauvery, Pykara, Bhavani, Periyar, Vaigai rivers. Of the 36, 17 hydro stations of capacity 1325 MW are Non irrigation based and 19 stations of capacity 861 MW are irrigation based hydro stations. In order to harness the energy from flowing or falling water from rivers or canal drops, 14 small hydro powers with

the total installed capacity, 515 MW from four Gas stations, namely Basin Bridge (120 MW), Kovilkalapal (107 MW), Valuthur (187 MW) and Kuttalam (101). In 2008-09, TNEB generated 2564 MUs of electricity from Gas, the highest ever since its inception. This marks a 44.65% per cent increase from the 1419 MUs generated in the previous year.

Immediate future plans The immediate future plan of the state is to bridge the demand supply gap. For which TNEB is planning to append its future generation capacity

Performance Indices for 2009-10 (Nov-09) of TNEB’s Thermal Power Stations Station Name

Ennore TPS Tuticorin TPS Mettur TPS North Chennai TPS

Units Generated

Auxillary consumption

Plant Load

Coal consumption

Oil per Unit consumption

Rate. Rs per

MU 980.82 4849.65 4338.648 3257.054

in % 14.96 8.13 8.29 9.03

Factor 37.22 78.871 0.745 88.201 0.717 88.284 0.7

Kg per Unit 1.013 4.25 0.32 0.77

mL per Unit 7.89 2.99 2.34 2.64

Unit 4.35

bagged numerous awards for outstanding performance in 2004-05, 2006-0 and 2008-09. The North Chennai Thermal Power Station, with 3 units of 210 Mega Watts capacity each, aggregating to 630

aggregate capacity of 89.7 MW have been commissioned so far. If the monsoon is good in catchment areas, the small HEPs will be able to meet the peak hour demand. Four Barrage type power

Mega Watts was established between1994 and 1996. This plant has bagged Gold medal from MoP for meritorious productivity awards in 200102 and 2002-03. In 2007-08, TNEB generated 21355 Million units of

house of each (2x15MW) were developed and commissioned during the year 1987 to 1989 across Cauvery River between Mettur and Bhavani. Since Tamil Nadu State had exhausted most of its viable Hydel Power potential for power

electricity from thermal power station, the highest ever since its inception. TNEB’s thermal plants achieved a PLF of 80.80% in 2008-09, as against the national average of 77.2 percent.

development at the beginning of the Sixth plan itself, considering the hydro power as ideal source of power, the pumped storage HEP has been developed at Kadamparai of 400 MW during 198788. In 2007-08, TNEB generated 6455 Million units of electricity from hydro, the highest ever since its inception. Gas: Of

through additional projects. In continuation to its plans, recently additional Units in the existing thermal generating stations are proposed by TNEB. Namely, North Chennai TPS Stage-2 of 1200 MW and Mettur TPS Stage-3 of 600 MW are under execution and expected to be commissioned before November-2011. Besides, Ennore Annexe (600 MW) and Kattupali TPS (1200 MW) are in pipe line. TNEB is also executing joint venture projects with NTPC of 1500 MW at Vallur, NLC of 1000 MW at Tuticorin and BHEL of 1600 MW at Udangudi. Hydel generating stations namely Bhavani Kattali Barriage Power house (60MW), Bhavani Barrage Power house (30 MW) and Periyar vaigai Power house (13MW) are under execution and expected to be commissioned before June 2011. March 2010

March 2010

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

13396.60 MW

Andhra Pradesh

Ownership Sector

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 3882.50

Gas 0.00

Diesel 0.00

Thermal 3882.50

0.00

(Renewable) 3617.53

(MNRE) 182.43

7682.46

Private

0.00

2580.40

36.80

2617.20

0.00

505.28

3122.48

Central

2377.38

0.00

2377.38

214.28

0.00

2591.66

6259.88

2580.40

36.80

8877.08

214.28

3617.53

687.71

13396.60

State

Sub-Total

Modewise breakup Thermal

March 2010

Unleashing its highest potential (Andhra Pradesh Power Generation Corporation Limited) APGENCO, the power generation company of Andhra Pradesh has embarked upon to construct 21 new power projects with an installed capacity of 15,900 MW at an investment of Rs 80,000 crores which is remarkable feat in the country.

he year 1959 had seen the establishment of Andhra Pradesh State Electricity Board under the state government which was entitled to carry on all the activities of power sector in the state. APSEB started functioning with the objectives of maintaining the power sector efficiently and economically simultaneously ensuring demand meets the supply. During the last decade inadequate capacity addition and low system frequency operation of less than 48.5 Hz for more than half a decade considerably reduced the power supply reliability. Over the period, the imbalance of the revenues against the cost of production, no significant reduction in technical losses and energy thefts, high cost purchases from IPP’s, other SEB’s gradually worsened the financial position of APSEB. Government of Andhra Pradesh

APGENCO is one of the pivotal organizations of Andhra Pradesh, engaged in the business of Power generation. Apart from operation & Maintenance of power plants it has undertaken the execution of the ongoing & new power projects scheduled under capacity addition programme and is taking up renovation & modernization works of the old power stations.

During the past five years APGenco, has been making profits and has accumulated Rs 1,000 crore through internal resources. The corporation is

The installed capacity of APGENCO as on 25th June 2009 was 7587.9 MW comprising 3882.50 MW Thermal, 3703.4 MW Hydro and 2 MW Wind power stations, and contributes about half the total Energy Requirement of Andhra

planning to invest this profit as an equity investment in some of the new projects. The power situation in AP is stated to be easing up with the start of supply of gas from the Krishna-Godavari basin by Reliance Industries Limited. Around

Pradesh. APGENCO is third largest power generating utility in the Country next to NTPC and Maharashtra. It’s installed Hydro capacity of 3703.4 MW is the highest among the Country.

2,000 MW of capacity, which has been lying idle for want of gas, is now being utilised. On its part, APGenco has also added 1,126 MW to its existing installed capacity of 7,588 MW. Following this, the total installed power generating capacity

APGENCO had an equity base of Rs.2117 crores with 11,000 dedicated employees as on 30th June 2009. The company has an asset base of approximately Rs.17344 crores. In an attempt to unleash its complete potential APGENCO has embarked upon an ambitious plan of setting up 21 power plants with a combined capacity of 15, 900 MW and an investment of Rs 80,000 crores over the period of next five years. As on date, of the 21 power projects, 11 are in various stages of execution. The ongoing projects, estimated to cost

realizing the declining tendency of the financial position of APSEB and considering the Government of India’s Liberalized policy for attracting private investment into power sector and today these reforms have yielded good fruits to the

Rs 25,000 crore, will have a total generating capacity of 4,363 MW. These include the Krishnapatnam power plant with an installed capacity of 1,600 MW costing Rs 8,500-crore and 1,100 MW Kakatiya thermal power plant. Even

sector.

before the completion of the ongoing projects, APGenco is taking up 10 new projects, estimated to cost Rs 55,000

crore. The new projects include the Rs 6,000-crore 2100 MW gas-based power plant in Karimnagar, Rs 16,500-crore 4,000 MW ultra mega power project at Vodarevu and Rs 4,500 crore 900 MW hydel power plant at Polavaram.

in the state had gone up to 13,186 MW.

Performance of APGENCO 2008-09 ♦New Capacity added from the second

unit of Priyadarshini Jurala Hydro electricity station is set at 39 MW. ♦Total Generation - 33502 MU, highest

since inception. ♦ Thermal Generation - 25678 MU,

highest since inception. ♦Hydro Generation - 8024 MU. ♦APGENCO record daily generation -

132.6 MU on 26.09.2008, highest since inception. In a significant development, the Chief Minister of Andhra Pradesh, K Rosiah, laid the foundation stone for Karimnagar Gas Power Project Stage-I (1x700 MW). March 2010

10360.39 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Karnataka

Ownership Sector

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 1970.00

Gas 0.00

Diesel 127.92

Thermal 2097.92

0.00

(Renewable) 3599.80

(MNRE) 527.15

6224.87

Private

860.00

220.00

106.50

1186.50

0.00

1680.99

2867.49

Central

1072.67

0.00

1072.67

195.36

0.00

1268.03

3902.67

220.00

234.42

4357.09

195.36

3599.80

2208.14

10360.39

State

Sub-Total

Modewise breakup Thermal

March 2010

Learning from the hardships of the past, Karnataka Power Corporation Limited in coordination with the State government has embarked up on to build new power projects to boost the generation capacity to 5, 000 MW. This will definitely enable the state to effectively tackle ever growing power needs of the people.

or over three decades, the

Karnataka Power Corporation has been a prime mover and catalyst behind key power sector reforms in the state. The measures taken in the power sector have spiraled steady growth both industrial and economic areas. Right from the year of inception, in 1970, KPCL has been striving hard to bring out the best to meet the growing power needs of the people. For Karnataka to achieve its targeted annual GDP (Gross Domestic Product) of 8 percent, it is very much essential that the state avails reliable power at a reasonable price. As per the Indian situation in terms of the electricity, the GDP elasticity ratio is 1.5. This means that the power requirement should grow at the rate of 12 percent per annum. Despite taking many measures the demand for power in the state has increased exponentially during the past decade. Keeping in view the inadequate power infrastructure facilities, the state government had brought in Karnataka Electricity Reform Act (KERA) in 1999 with an intent to revamp the overall power sector in terms of enhancing generation capacity, bringing down T&D

losses, improve the quality of supply and rendering good service to the consumers. To meet the additional capacity requirement of Karnataka, the state owned power generating company M/S KPCL and central sector establishments M/S NTPC/ NLC have already drawn up plans for establishing new generating units. With the liberalization and opening up the power sector for private sector participation through policy initiatives by the Government of India and Government of Karnataka, the IPPs have also come up with proposals for establishing new generating plants in the state. Currently, KPCL has an installed capacity of 5509.82 MW of hydel, thermal and wind energy, with 4000 MW in the pipeline. The 1470 MW Raichur Thermal Power Station located in Raichur district is accredited with ISO 14001-2004 certification for its environment protection measures. From an industry point of view, KPCL has raised the bar on the quality of deliverables and is constantly working at lowering the cost per megawatt. The leverage point of KPCL initiatives are its resource management strengths—right across planning, financing and project engineering. KPCL also has a high rating in terms of project completion and commissioning within the scheduled time. The Karnataka Power Corporation Ltd. (KPCL) hopes to boost the State’s generation capacity by 5,000 MW over the next four years. While celebrating the 40th year anniversary in June 2009, KPCL had taken up nine new power projects during the year.

“Several projects on which work had not been taken up have received clearance from the Centre. The 270-MW project at Shivanasamudram to which the Tamil Nadu Government had earlier objected, has been cleared by the Centre. Similarly, the Gundia power project, which faced stiff opposition from environmentalists, has received preliminary clearance from the Ministry of Environment and Forests,” said S.M. Jaamdar, Managing Director KPCL. During the year 2009 KPCL had made a profit of Rs. 376 crore, and invested around Rs. 1,238 crore to build new power projects and maintain the existing once. Also, the state Government had contributed Rs. 500 crore towards the share capital. As on today, KPCL is the only corporation in the country to have maximum coal stock. The corporation has adequate coal stocked at the Raichur Thermal Power Station, and at the Bellary Thermal Power Station. The Plant Load Factor or efficiency of these thermal plants is also the highest in the country.

Ongoing Power Projects Raichur Thermal Power Station: KPCL has taken up the new unit of 250 MW capacity plant for implementation by utilizing the infrastructure facilities available in RTPS at a project cost of Rs. 1046 crores. The annual energy generation would be 1752 MU. Contract agreement has been executed with M/s BHEL for BTG package and for other BoP works with different agencies. All the works are in brisk progress and it is programmed to commission the unit by March 2010. Bellary Thermal Power Station Unit – II: In addition to the existing,

March 2010

government has entrusted KPCL to establish “Pit-head Thermal plant at Chhattisgarh” in 2 phases of 1200 MW capacity each with the co-operation of the Government of Chhattisgarh. Memorandum of Understanding has

KPCL is adding another unit at BPTS with an installed capacity of 500 MW in the state. The project is estimated to cost of Rs. 2261 crores. The gross energy generation would be 3504 MU per year. Contract agreement has been executed with M/s. BHEL for EPC package of Rs. 1680 crores. All the works are in progress. It is programmed to commission the unit during November 2010. Renovation, Modernisation & Upgradation Works: Up gradation works of Nagjhari power house units 5 & 6 from 135 MW to 150 MW has been entrusted to M/s. VATECH Hydro India Ltd. It is programmed to Re-commission the units in a phased manner by the end of 2010. Grid Connected Solar Photo Voltaic Power Plants : KPCL is establishing Grid connected Solar Photo Voltaic power plants in three districts viz. Kolar, Belgaum and Raichur each of 3 MW capacity. 3 MW capacity Solar PV plants each at Kolar & Belgaum districts (total 6 MW) are already commissioned. M/s. BHEL has executed contract agreement for installation of 3 MW capacity Solar PV plant at Yapaldinni in Raichur district.

New Power Projects Yeramarus & Edlapur Thermal Power Stations: For development of

Yeramarus TPS (2 X 660 / 800 MW) &Edlapur TPS (1 x 660 / 800 MW), the Karnataka government has formed a Joint venture with M/s BHEL and an MOU has also been signed on 12th January 2009. Both the projects have already been cleared by the department of Fisheries, Airport authority of India, Archaeological Survey of India and the department of Health & Family Welfare. In another significant break through, MoEF has cleared the Yeramarus TPS project and works are slated to be taken up this year. The same is awaited for Edlapur TPS. Negotiations are on at the Sub Committee of KPCL to look in to the offer proposal sent by M/s BHEL with Bench mark data for consideration. Works on Yermarus power project are slated this year 2010. Bellary Thermal Power Station, Unit-3: GoK has accorded approval to take up Bellary Thermal Power Station, Unit-3 (1 x 500 MW) during 11th Plan. All clearances for the project have been received from all the concerned departments. The Board in its 218th meeting held on 05th January 2010, resolved to go in for sourcing of BTG and other components through International Competitive Bidding (ICB) for a capacity of 600 MW. Thermal plant at Chhattisgarh: In a significant move the Karnataka

already been signed between GoK and Government of Chhattisgarh on 08th September 2008. Further, GoK has accorded approval for the revised capacity of 2 x 800 MW (1600 MW) in the first phase & 1 x 800 MW in the second phase. Tadadi Combined Cycle Power Plant: During the year 2009, the state of Karnataka had accorded approval for 2100MW Gas based “Tadadi Combined Cycle Power Plant”. The Pre Feasibility Report has been prepared and action is being taken for obtaining statutory clearances from the concerned departments. Gundia Hydel Scheme: It is another important project at Hassan located in the Dakshin Kannada district of the state. The proposed installed capacity of the project is 400 MW. It is expected that the project would generate 1002 MU of energy per annum. The Techno-Economic clearance for phase-I works have already been obtained in 2008, while the clearance from MoEF is awaited. The project is estimated Rs.1333.00 crores. Shivanasamudra Seasonal Scheme: For very long, the Shivasamudra project was disputed between Tamil Nadu and Karnataka. Recently, the dispute has been solved and the Tamil Nadu government has given its consent to go ahead with the project. The estimated cost of the project is set at Rs.750.00 crores and it

March 2010

would generate 1290 MUs of energy per annum.

Details of KPCL power generating stations Name of the Project

Munirabad Hydro Power Station and Ghataprabha: In addition to the existing hydropower project another unit is being built at Munirabad power station to enhance the generation capacity. The project which has an installed capacity of 10 MW is estimated to cost Rs.40.00 crores, which would generate 11 MUs of energy per annum. Similarly the proposed Ghataprabha power project with an installed capacity of 20MW is estimated to cost Rs.75.00 crores. The project would generate 40MUs of energy per annum. Wind energy project: In a step forward to enhance the renewable energy sector, the Government of Karnataka has approved the development of 500 MW “Wind energy project” in the state. The project is carried out by KPCL and M/s.NTPC as a Joint venture. In 2009 an MOU was signed between the two. Further, GoK has given green signal for Kappatagudda (39.75 MW) & Guledagudda (100 MW) Wind Energy Projects. Layout plan for both the projects have been prepared and draft DPRs are under finalization. Bidadi Combined Cycle Power Plant: The 1400 MW Bidadi Combined Cycle Power Plant has been revived by the state government. Recently, the KPCL Board has approved for negotiation with GAIL to obtain gas from Dabhol to the plant. All clearances have been obtained and a subsidiary company has also been set up for this purpose. Works on the project are slated to commence from May 2010.

HYDEL Kali Hydro Electric Project Supa - 2 x 50 Nagjhari - 2 x 135 + 4x150 Kadra -3 x 50 Kodasalli - 3 x 40 Sharavathi Hydro Electric Project Linganamakki - 2 x 27.50 Sharavathy -10 x 103.50 Gerusoppa - 4 x 60 MGHE – 4 x 13.20 + 4 x 21.60 Varahi Hydro Electric Project Varahi - 4 x 115 Mani Dam - 2 x 4.50 Bhadra River Basin Project Bhadra (2 stations) Ghataprabha River Basin Project Ghataprabha - 2 x 16 Krishna River Basin Project Almatti – 1 x 15 + 5 x 55 Cauvery River Basin Project Shiva samudram – 6 x 3 + 4 x 6 Shimsha – 2 x 8.60 Tungabhadra River Basin Project Munirabad – 2 x 9 + 1 x 10 Mini Hydro Electric Projects – 4 Nos. Total Hydro THERMAL Raichur Thermal Power Station – 7 X 210 Bellary Thermal Power Station – 1 X 500 Total Thermal WIND Kappatagudda Wind Energy Farm DIESEL Yelahanka Diesel Plant – 6 x 21.32 SOLAR Yelasandra Solar PV Plant, Kolar Dist. Itnal Solar PV Plant, Belgaum Dist. Total Solar GRAND TOTAL

Installed Capacity (MW)

100.00 870.00 150.00 120.00 55.00 1035.00 240.00 139.20 460.00 9.00 39.20 32.00 290.00 42.00 17.20 28.00 10.75 3637.35 1470.00 500.00 1970.00 4.555 127.92 3.00 3.00 6.00 5745.825

March 2010

Uttar Pradesh, Rajasthan and Punjab figure in the top 10 generating states with a total of 23776.7 MW. While Uttar Pradesh was pushed to the 6th position by Karnataka, Rajasthan pushed Punjab to the 10 position. The total installed power generation capacity of Northern states was at 40369.81 MW in December 2009. The below rating is as on December 2009. The rating is the grand total capacity generated from State, Private and Central utilities. Maharashtra Uttar Pradesh Rajasthan Punjab Haryana Delhi Uttrakhand Jammu & Kashmir Himachal Pradesh Chandigarh Grand Total of Northern Region Source: Central Electricity Authority

20858.92 9402.93 7516.26 6857.51 4553.24 3783.67 2399.04 2254.64 1975.24 93.99 40369.81

March 2010

9402.93 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Uttar Pradesh

Ownership Sector

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 4072.00

Gas 0.00

Diesel 0.00

Thermal 4072.00

0.00

(Renewable) 524.10

(MNRE) 25.10

4621.20

Private

0.00

462.88

Central

2491.84

549.97

0.00

3041.81

203.72

1073.32

0.00

4318.85

6563.84

549.97

0.00

7113.81

203.72

1597.42

487.98

9402.93

State

Sub-Total

Modewise breakup Thermal

March 2010

State of the Power Sector Uttar Pradesh, with mainly thermal power stations at its disposal, has a total installed capacity of 9402.93 MW which includes state utilities generating 4072 MW of thermal, 524.10 MW of hydro power and 25.10 of Renewable Energy Sources. The Central utilities generate 3041.81 MW of thermal, 203.72 MW of nuclear, and 1073.32 MW of hydro. But the state still faces plenty of changes further to which the state government has designed a new Energy Policy in 2009. Here is a look at the policy.

ower is the engine of growth of any developing economy. Consumption of electrical energy is a universally accepted indicator of progress in the agricultural, industrial and commercial sectors, as also of the well being of the people of the State. No major economic activity can be sustained without adequate and reliable supply of power. It plays a critical role in employment generation, regional development and poverty eradication. The economic development of Uttar Pradesh is hampered due to inadequate availability of power. The demand supply gap has been widening year after year and not much has been done to create additional capacities in all the segments of the sector. The gravity of the situation is proved by the fact that the State’s annual per capita consumption is 340 units as against the national average of 672 units. 97

To appreciate the magnitude of problem and decide a right course of action the Government has reviewed the current state of power sector in UP and it can be briefly summed up as follows. ♦ U.P.has a current peak deficit of power

to the extent of 3000 MW. This is because no new plant came up after 1994. ♦ The power infrastructure including

transmission and distribution has also become overloaded due to increase in demand and inadequate investment in the sector in the past 10 years. ♦ The State has a distribution network of

34081 circuit kilometers of line network with the transformation capacity of 20000 MVA. State has planned an investment of Rs.15341 Crore in the next 2-3 years in the distribution segment. ♦ The transmission network of the State

consists of 12849 CKT of lines of different capacities and the transformation capacity of 18495 MVA. The State has plans to invest Rs. 19945 Crore during the next 2-3 years out of which Rs. 10000 Crore is proposed under the PPP model. ♦ Household electrification levels in UP

are 32% as against the national average of 56%. The Govt. of U.P. has kept a target of 100% rural electrification to bring the per capita consumption to the level of national average by 2012 and to improve the house hold electrification level to 100% by 2014. The State has also planned for 24 hours supply to rural areas by 2014.

♦ To achieve the average of per capita

consumption of the country, the State would require over 32000 MW of new capacity with an investment requirement of over Rs. 200000 cr.

New Power Policy The present Government has appreciated the problems being faced by the power sector. GoUP is aware of the fact that in the present era of globalization the sector cannot grow without participation of all the stakeholders. The Government also accepts the fact that it’s intent should be clearly defined so that long term planning could be done and investment opportunities could be clear to the business world. The Government of Uttar Pradesh had earlier issued the Power Policy 2003 and later in 2008 a policy regarding generation was also issued but now the Government feels the need of a comprehensive and composite Power Policy which could serve as a beacon for the growth of power sector and the overall development of the State. The objectives of the power policy are to sub-serve the overall goals of the State in economic development. Basically, the goals that the State strives to achieve in economic sphere are the rapid development of productive activities in order to create sustainable employment opportunities and thereby reduce the level of poverty, particularly prevailing in rural areas and among the people belonging to Scheduled Castes and Scheduled Tribes and Other Backward Classes. It is well recognized now that economic growth is a must in order to share the fruits of development more equitably.

March 2010

tion measures including demand side management. ♦ To aim at building up a sophisticated

and skilled trading entity with a view to utilizing the significant opportunities offered by the new Act. ♦ To facilitate consumers benefiting

from competition & towards this end encourage private sector participation in all areas viz. generation, transmission, distribution, trading and R&M. ♦ To strive towards expeditious

UP Power policy 2009 is structured with consumers as the focal point & aims at fulfillment of the overall need for universal access and for providing reliable, quality & affordable power. The following are the principle objectives in this direction: ♦ Access to electricity to all households

in next five years ♦ Power Demand to be fully met by

2014. Energy and peaking shortages to be overcome and adequate spinning reserve to be available. ♦ Supply of Reliable and Quality Power

of specified standards in an efficient manner and at reasonable rates. ♦ Per capita availability of electricity to

be increased to over 1000 units by 2017 ♦ Financial Turnaround and Commercial

Viability of Electricity Sector thereby reducing the financing burden on the State over a period of time while recognizing the fact that during the initial transition period, state support would be a key determinant for the success of entire exercise Protection of consumers’ interests

♦ To increase the availability of power

by (a) encouraging augmentation of environment friendly generating capacity b) sourcing competitive and reliable bulk power from sources both within and outside the state c) Encouraging developers to enter into MOU for generation and supply of power to the State in cases where the developer has tied up or has taken steps to tie up coal, water and has arranged land on his own or with the help of the State Government. ♦ Optimization of generation of existing

plants by putting up additional units, through renovation and modernization or by changing configuration of machines in case of plants under commissioning or by allowing alternative fuel for seasonal generating units particularly those based on bagasse or bio mass. ♦ To augment the transmission and

distribution capacity and refurbish the existing capacity with a view to improving efficiencies, reliability & quality of supply and reducing losses.

electrification and supply of electricity to all villages and households in the state. ♦ To support the UP Electricity Regula-

tory Commission with all policy and other administrative measures with a view to ushering in a rationalized tariff framework with efficient distribution of subsidies.

Issues Addressed The policy seeks to address the following issues: ♦ Generation ♦ Renovation and Modernization &

Management of Existing plants ♦ Cogeneration and Captive Power ♦ Transmission and Trading ♦ Distribution ♦ Rural Electrification ♦ Generation through Renewable energy

sources ♦ Energy Conservation and Demand Side

Management

♦ To encourage efficient usage of

electricity & facilitate energy conserva-

March 2010

Generation The State is grappling with the serious power shortages. In order to reach the national level of per capita consumption approx. 32000 MW additional capacities is required. The State Government has approved the power procurement plan during the remaining period of 11th Plan and the ensuing 12th Plan.

New Capacity Addition GOUP’s efforts have resulted into huge participation by private sector in U.P. Power Sector. Three important projects viz Anpara ‘C’ (1200 MW), Bara (1980 MW), Karchana (1320 MW) have already been awarded on competitive bidding basis. Others projects planned under Case II include Jawaharpur (1320 MW), Dopaha (1980 MW), Lalitpur (2000 MW) and NCR project (2000 MW). 5000 MW of energy is planned to be procured through Case I. In the State Sector, three projects viz., Parichha Extn Stage 2 (500 MW), Harduaganj Extn (500 MW) and Anpara D (1000 MW) is planned for the 11th Plan. In the 12th Plan two projects viz., Anpara E (1320 MW) and Obra C (1320 MW) have been approved. In the joint sector two plants viz., Meja NTPC (1320 MW) and Fatehpur Neyvile Lignite (2000 MW) have been approved. Though the GOUP will endeavor to create additional capacity through state owned utilities but it is evident that substantial investment has to be brought in by the private sector as well. The State still needs substantial additional capacity to provide adequate power in all sectors. To meet this

objective the GoUP envisages private participation in the generation sector by having a policy commensurate to attract investment by private power developers in the State. The Govt. of India has formulated policy guidelines for procure-

approved. Standard bidding documents have also been issued . GoUp will continue to procure power through competitive bidding route under case I and case II. Under case I procurement , the seller will be responsible to arrange

ment of power through competitive bidding route under case I and Case II methods. The State would continue to follow this route and power would also be procured through MOU route. Generating projects of minimum size of 250 MW and above through MoU route

land, water, fuel and all the statutory clearances . But in case of procurement under second option the State Govt. will arrange land, provide water, arrange fuel linkage and obtain all the statutory clearances for the project.

shall be eligible to get the benefits under the policy. Generation projects through MoU route shall be set up by IPP on its own or jointly with central or stateowned utilities or its successors anywhere in the State of Uttar Pradesh.

In case of projects being set up under the MOU route the following policy would be applicable: ♦ Fuel

The tariff for such projects would be determined by the UPERC. Policy Details Govt. of India has formulated detailed guidelines for procurement of power through competitive bidding route. Under this mechanism two models, case I and case II , have been

The State is grappling with the serious power shortages. In order to reach the national level of per capita consumption approx. 32000 MW additional capacities is required. The State Government has approved the power procurement plan during the remaining period of 11th Plan and the ensuing 12th Plan.

When developer has arranged its own fuel without recommendation of GoUP, State Government through its nominated agency shall have right and not obligation to purchase power from the power project, up to 50% of the Installed Capacity at price to be decided by UPERC.

When developer has arranged its fuel, on recommendation of GoUP, either in the form of fuel allocation/ linkage or in the form of mining block, the State government through its nominated agency shall have first right and not obligation to purchase power from the power project, up to 90% of the Installed capacity at price to be decided by UPERC.

The right of refusal will be exercised by the Government each time the Developer is in the process of finalizing its Power Purchase Agreement (PPA). However, the Government would provide its concurrence or otherwise to the PPA to the Developer within three months of the receipt of the same. The

March 2010

the Developer. The Energy Department, Government of Uttar Pradesh will facilitate the Project development activities by extending all possible support to the Company.

Other Incentives

All new projects will be treated as “Industry“ in terms of Industrial Policy of the State and all the incentives available to new projects will be applicable as per Industrial Policy of the state.

State Government. State Government shall facilitate land assembly as per the policy of the State Govt. However, the land cost would be fully borne by

term of PPA shall be twenty-five years. The PPA shall be approved by the Uttar Pradesh Electricity Regulatory Commission.

The balance power or the total power, as the case may be, may be sold to third party consumers, other licensees, traders, etc. Such sale to third party shall be guided by the applicable regulations such as Open Access Regulations, surcharge or OA charges etc issued by Uttar Pradesh Electricity Regulatory Commission. The developers will also have to make their

♦ Water and Other Clearances

The Government of Uttar Pradesh shall facilitate needed water linkages expeditiously and will assist in obtaining clearances from Centre ♦ Administrative Support

The Government of Uttar Pradesh will facilitate expeditious grant of permissions, approvals, no-objection certificates, recommendations, etc. under the purview of the State Government. The Developer shall be responsible to obtain all the statutory clearances/approvals including approvals relating to Foreign Direct Investment, if any, as per law

♦ Land

100

The selection of developer for projects under the MOU route will be made on the basis of guidelines framed by the Government and notified separately. However the broad guidelines would be based on the guidelines for bidders qualifications under case II bidding notified by the Govt. of India.

the developer

own arrangement for entering into a wheeling agreement with State distribution/State transmission utilities, as may be applicable, as may be mutually agreed upon between the Developer and Licensee(s).

The land requirements for the power plant under this policy may be identified by the developer or by the

Selection Of Developer

The primary responsibility of development of the Project shall be of

Optimatisation of Capacity

The State would also vigorously follow up with the existing plants to optimize their capacity for increased availability of power by providing the incentive to sell part of increased capacity to third party. In such cases of optimization of capacity of an existing plant or the plant under commissioning 50% of the additional power will be allowed for third party sale. The rate of additional power which will be supplied to the State nominated agency would be decided with the approval of UPERC.

Renovation, Modernisation and Management of Existing Power Plants An important area which has not received sufficient attention is the

March 2010

upkeep of the existing plants. Some of the state power plants have outlived their useful life. In the absence of surplus generation capacities, due attention has not been paid to scheduled maintenance, renovation and modernization of the existing plants. This has resulted in unplanned outages and frequent breakdowns. As a result, availability factor and the Plant Load Factor of a number of plants are below satisfactory level. It is proposed to increase the operating efficiency of the existing plants through introduction of professional management and renovation and modernization & refurbishment programmes. The process of refurbishment, renovation and modernization involves substantial investment. The State proposes to throw open the refurbishment & renovation and modernization of the existing plants to private sector, joint sector participation which can help in bringing in more efficient management practices leading to greater availability of power. Private Sector and Government undertakings may be allowed to operate/manage the plants wherever necessary. Such participation by the private sector/ Joint sector may follow the following routes: ♦Lease, Rehabilitate, Operate and

Transfer (LROT) ♦Joint Asset Management with state

utilities; ♦Sale of existing plants to private sector

or to any joint sector venture for new capacity installation at old site.

Cogeneration and Captive Power The Electricity Act 2003 mandates

State Governments prepare and notify a national policy for stand-alone systems for rural areas based on renewable and non-conventional sources of energy. UP’s rural population is 79.9% of the total population. 20% of the cropped area is under sugarcane cultivation and UP with a sugar production of 120 million MT is the largest producer of sugar in the country. Bagasse based generation

UPERC. In addition, as an incentive all existing or future co gen plants based on baggasse or bio mass will be allowed to sell 10% of their total generation under open access to third party for next 10 years. ♦ Underutilized captive capacity/ any

additional captive capacity would be supported by way of purchase of power at appropriate tariff with the approval

would improve the marketability of the “waste product” from sugarcane while supplying power to the local areas either in a stand-alone mode or with grid connectivity. UP also has a captive power capacity of about 2000 MW, most of

of the Commission. All captive power plants not covered by the above such as diesel generating plants will be allowed to sell 10% power to third party under open access system for next 10 years; State would also permit

which is under-utilized and therefore lying idle leading to significant loss of opportunity cost for the captive plant owners. Cogeneration helps captive generation and also augments the state grid. They also create employment both

local third party sales by such units within a radius of 50 kms.

direct and indirect to the rural people.

GOUP would encourage a policy that allows the banking and absorption of surplus capacity. ♦ Captive Power Plant can be installed

by any of the following: Policy Details ♦ The State will encourage setting up of

cogeneration plants based on baggasse / bio mass or any other non conventional fuel. The State’s nominated agency will enter into PPA with the generator as per policy guidelines issued by UPERC. ♦ To improve availability of power in the

State, the State will also encourage the cogen plants to use conventional fuel such as coal or gas to generate power during the off season. The State will allow as an incentive 50% of the additional generation in off season to sell anywhere under open access system. The power purchase price for power generated through conventional fuel will also be determined by the

A consumer of electricity

A group comprising more than one consumer as joint venture

An actual user of power but not a consumer

A group of actual users of power,

but not consumer as joint venture A group comprising of both consumers and users of power as joint venture

Statutory & Other Permission: The State will facilitate the cogeneration and Captive power plant owner /

Consumer to obtain all statutory / non-statutory permission for installation of cogeneration and captive power plant

that GOI after consultation with the

101

March 2010

Policy Details GOUP would encourage private participation in Transmission so as to attract the necessary investments for strengthening and expansion of the Transmission system. Considering the constraints imposed by the Act and also the significant opportunities offered by Trading, GOUP would form a trading company for Intra State and inter State trading of power. Trading being a highly knowledge and skill intensive activity, the trading

Evacuation Facility for all New Generation Projects The cost of the dedicated transmission line, if required, from all the Generating Plant (case I, case II and MOU) to the designated grid sub-station of the State utility/or inter State grid substation and the cost of interfacing at both ends (the Generating Plant and grid substation) including work at the grid Sub-Station, cost of bay, tie- line, if any, and replacement/ up gradation of existing equipment, if any, shall be borne by the Developer. The developer will also be responsible for erection testing and commissioning of required transmission inter connection .The State Government through the State transmission utility or other assignees will facilitate the clearances and approvals for connecting the power plant to the grid sub-station. However, the responsibility of application, clearances and approvals for the same would lie with the developer.

Transmission and Trading The Electricity Act 2003 requires separation of the Transmission and Trading functions. Transmission is to 102

provide open access. Transmission is a licensed business and a Transmission licensee is barred from Trading. State/Central Transmission Utility shall be deemed to be Transmission Licensee. There is provision for private Transmission Licensee. STU/CTU or Transmission licensee is not to engage in the business of Trading. A Government Company or any Authority or Corporation to be notified by State Government shall operate SLDC. SLDC may be operated by STU till the Government notifies a Government company or any authority or corporation. SLDC is not to engage in the business of trading in electricity. In addition to the industry structure implications of the above regulations, there are network congestion issues. Additional generation investments due to the liberal policies of GOUP are expected to increase and that would require concomitant investments in transmission. In addition to the above, GOUP would examine all possible options to enhance the value addition of the existing transmission assets in the state.

company would require considerable professional skills and for this purpose GOUP would encourage private sector participation in the trading company in view of specialized skill required for the trading business. With the advent of Open Access, the investments and competence required in the SLDC for scheduling and imbalance settlement and the Transmission system to avoid congestion would be substantial. Additional generation capacity due to the liberal policies would require commensurate expansion of the transmission network. GOUP would encourage transmission licensees in the private sector and grant right of way on conditions similar to being granted for state owned Transmission Company

Distribution Policy Details The State Government recognizes that the operational efficiencies (T&D loss and collection efficiency, quality & reliability of supply) need to improve significantly to address the various issues that plague the sector at present. March 2010

The state government also recognizes that the operational efficiencies are inextricably linked to the governance of the sector. Industry structure and competition, which ensure commercial pressure on the utility and private ownership sensitive to commercial pressures, are the most powerful tools to improve efficiencies on a sustainable basis and ensure sector viability. In addition to reduction in system losses and improvement in profitability of the distribution business, the objective of the quality & reliable supply and also expansion of supply network especially in the rural areas has also to be achieved in an expeditious manner. GOUP recognizes that the case for competition and private sector participation is as strong and relevant in the urban areas as in the rural for improving customer satisfaction and efficiency. GOUP would accordingly involve Private Sector participation for as large a consumer base as possible in the rural and urban areas. GOUP accordingly would pursue private sector participation in the distribution business on a priority basis. Private Sector Participation in the distribution business would be through a transparent and open process of competitive bidding. Private sector participation in distribution business may be through franchisee model or in any other form. While reduction of the burden on Government finances is one of the most important long-term objectives of the distribution privatization exercise, GoUP recognizes the need for continued support to the sector at least during the transition period till the distribution

103

entities turn around and become financially viable & self sustaining. GOUP is prepared to commit the necessary transition period support to ensure a successful turnaround of the state power sector. GoUP would involve multilateral agencies, central sector financial institutions and Ministry Of Power, GoI in funding of transitional finance requirement.

Renewable Energy / Green Energy Options The Renewable Energy options are as follows:

such as open access and multiple licensees through creation of own distribution network. GOUP recognizes that such mechanisms would introduce competitive pressure on various players in the sector to improve quality of supply and service at competitive prices as well as enhance consumer choice. GOUP is committed to facilitating the grant of open access on the existing state owned transmission network and would grant rights of way for creation of new distribution network by additional licensees.

Rural Electrification The key development objective of the power sector is supply of electricity to all areas including rural areas as mandated in Section 6 of the Electricity Act. The GoUP would endeavor to achieve this objective at the earliest. Determined efforts shall be made to ensure that the task of rural electrification for securing electricity access to all households and also ensuring that electricity reaches to poor and marginal sections of the society at reasonable rates.

Mini, Micro and Small Hydropower projects (up to 25 MW).

The Electricity Act 2003 facilitates introduction of competition in the distribution sector through mechanisms

Biomass projects by utilizing agriculture residues and animal waste.

Solar energy based power projects. Energy power projects based on municipal sewage , solid waste and Industrial Waste

â&#x2122;Ś Policy Guideline

The State will encourage above renewable energy projects wherever feasible. The power will be purchased at the tariff approved by UPERC. â&#x2122;Ś Infrastructure Facilitation

When the sale of power is only to the State utility, necessary transmission lines and substations would be created by the State utility or the generating company would be allowed to create the same & necessary administrative support for it would be extended by GOUP. GOUP may set up the entire connected infrastructure like roads, bridges and water resources for the project at the cost of the developer. In case lining of canals is required for water availability for any project, cost of lining would be borne by the developer. GOUP would encourage and facilitate private sector investment in setting up new small hydro projects. GOUP would also purchase power generated from small hydro projects at an approved tariff.

March 2010

7516.26 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Rajasthan

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 3240.00

Gas 443.80

Diesel 0.00

Thermal 3683.80

0.00

(Renewable) 987.96

(MNRE) 30.25

4702.01

Private

135.00

0.00

135.00

0.00

872.70

1007.70

Central

649.48

221.23

0.00

870.71

469.00

466.84

0.00

1806.55

4024.48

665.03

0.00

4689.51

469.00

1454.80

902.95

7516.26

State

Sub-Total

104

March 2010

THE RAJASTHAN GOVERNMENT HAD STARTED MAKING PREPARATIONS IN ADVANCE TO MEET THE DEMAND FOR POWER PROJECTED

5,000 MW DURING THE 12TH FIVE YEAR PLAN PERIOD AND EVEN INVITED THE COUNTRY’S LEADING POWER TO GO UP BY ABOUT

Item

Unit

2009-10

2010-11

2011-12

Requirement

53362

57921

63072

Peak Demand

8474

9197

10012

11298

12262

13349

Annual Energy

Installed Capacity Required

SECTOR COMPANIES FOR SALE OF

2,000 MW ELECTRICITY TO RAJASTHAN LAST YEAR. A LOOK AT THE STATE’S CURRENT SITUATION.

ursuant to the Power Sector Reforms Act, 1999, the

erstwhile RSEB was unbundled on 19.7.2000 through Govt. notification in the form of Transfer Scheme into five successor entities engaged in Generation, Transmission and Distribution. In Distribution, instead of one company, three independent distribution companies, namely, JVVNL, AVVNL and JDVVNL were formed. All the Companies are registered under the Companies Act, 1956. Govt. had carved out a one time restructured balance sheet (Asset–Liability) for each company after adjusting Govt. Loans, Subvention Receivable, Reserves & Surplus, etc.

high as 1267 LU/day during the Rabi season. The highest consumption recorded this year is 1401.48 LU/day on 25.12.09. Meeting deficit in availability ♦ Overdrawal / unscheduled interchange

(UI) is resorted to subject to system conditions. ♦ Firm power is being purchased from

Captive Power Plants (CPP) at Rs. 6/per kWh as per the GoR guidelines issued for purchase of power from CPPs. ♦ Bilateral power is being purchased

♦ Banking arrangements have been

made with neighbouring power utilities of neighbouring states.

Power Requirement of XI Plan As per latest assessment of demand for Rajasthan, the energy requirement, peak demand and installed capacity required to meet the demand during the remaining XI Plan (FY 10-FY 12) are as below:As per projections, capacity addition of 6516 MW is required upto the end of 2011–12.

through traders and Energy Exchange.

Particulars

Installed capacity as on 31.12.09

Own Generation

Power Scenario Installed Capacity The total installed generation capacity in the State is 7716.63 MW as on 31.12.2009.

a) State Sector Projects (RVUN) b) Partnership Projects

4820.30 MW

Central Sector Projects

1878.18 MW

Non Conventional Sources

The peak demand as recorded during December 2009 was 6573 MW. During the year 2008-09, record supply of 38157 MU was made to the consumers of the

a) Wind

105

972.95 MW

Total Own Generation (a+b)

Peak Demand

state with a daily average of 1045 LU/ day for the whole financial year and as

3847.35 MW

b) Biomass

851.84 MW 31.30 MW

Total Non Conventional Sources (a+b)

883.145 MW

Total (1+2+3)

7716.63 MW

March 2010

Capacity Addition in remaining XI Plan(FY 10-FY 12) the remaining XI Plan is given below:

So far, wind generating plants of total installed capacity of 851.84 MW and 3 Biomass based power plants of total capacity of 31.3 MW have been commissioned up to Dec. 09. About 328 MW of wind power plants are scheduled

State for which they will provide generation subsidy upto Rs. 12 per unit against estimated generation cost of Rs. 15 per unit. RERC has fixed a tariff of Rs.15.78 per unit for solar power plants to be set up under above promotional

Out of above, 695 MW in State sector & 135 MW in Private sector has already been commissioned during the year

to be commissioned in current financial year out of which 117 MW has already been commissioned.

scheme. They have further set a target of 50 MW of solar power plants for which tariff is to be determined by RERC on cost plus basis.

The year wise capacity addition in

2009-10 (up to Dec-09. 759 MW capacity (excluding NES) is likely to be commis-

However, power from Wind sources is infirm power and cannot be scheduled

Meeting Power Requirement of XII Plan-Advance Action

(In MW) Name of Sector

2009-10

2010-11

2011-12

As per latest assessment, the peak

Total

demand for Rajasthan will be about 16000 MW by the end of 12th plan (March-2017). Advance action has been taken to meet this demand. The proposed capacity addition planned through various projects is given below.

RVUN & SHARED A. RVUN

945.00

0.00

1860.00

2805.00

0.00

13.65

0.00

13.65

945.00

13.65

1860.00

2818.65

B. SHARED TOTAL (A+B)

â&#x2122;ŚNew projects of capacity 2x660 MW

Central sector project & allocation

374.40

110.43

96.00

580.83

Private sector projects

270.00

810.00

0.00

1080.00

1589.40

934.08

1956.00

4479.80

each at Chhabra & Suratgarh and 2x125 MW at Giral are sanctioned in State Sector for which initial activities like allotment of water & land and appointment of Technical Consultant has been completed. RVUN has also initiated activities for obtaining various statutory clearances, etc. In

TOTAL (1+2+3) (Excluding NES)

sioned in the remaining period of year 2009-10. Additional capacity of 211 MW is expected from NES Projects in the year 2009-10. Around 1000 MW is also likely to be added from NES Projects during FY11 and FY-12.

Non Conventional Energy Sources The State Government has issued various policies for promoting the establishment of power plants based on Non Conventional Energy Sources.

106

due to its unpredictable nature. Further, most of the wind potential is in the western region of the state which itself is far from the load centre. Therefore, a long transmission system is required to evacuate this large installed capacity. As per direction of RERC, 400 kV transmission system with two 400 kV GSSs at Barmer and Jaisalmer have been taken up. These projects are presently under execution and are likely to be completed by March, 2010. The State has vast potential for solar power generation in Western part of the State. MNES has allocated 10 MW capacity of solar plant capacity for each

addition to above, looking to the rapid increase in power demand, in-principal approval has been accorded by state government for additional generation capacity of 4780 MW for the following projects:

STPS unit-9 &10 2x660 MW

Ramgarh Ex. Stage IV 160 MW

Kalisind unit-3 & 4 2x660 MW

Dholpur Ex. Stage-II 330 MW

Keshoraipatan GTPP 330 MW (Private Sector)

March 2010

Banswara TPP 2x660 MW

♦RERC has approved procurement of

2390 MW power round the year and additional 1000 MW during peak months (i.e. Oct. to Mar.) from private sector projects through competitive bidding process ♦Agreements have already been signed

for purchase of 1950 MW power from Ultra Mega Power Projects being set up in the Country. Allocation of another 550 MW is expected to be finalized in the near future. ♦In addition to that 1175 MW allocation

is likely to be added through Central Sector Projects in XII plan. ♦The State Government is also vigor-

ously pursuing the establishment of a Nuclear Power Station in Banswara where the site has already been selected by the Site Selection Committee of NPCIL.

Transmission, SubTransmission & Distribution Network

transmission, sub-transmission and distribution network with 356 Nos. EHV sub-stations, 3082 nos. 33 kV substations and 600879 nos. of 11/.4 kV sub-stations to cater to the load demand in the different areas of the State. To meet the annual growth, adequate strengthening of the transmission and distribution system is being done annually on a regular basis for which sufficient plan funds have been allocated. It is also proposed to construct 180 nos. 33 kV Sub-stations during each financial year. With proper extension and augmentation, the transmission system shall be able to easily evacuate new generating capacities & meet the projected peak demand by the end of 2011–12. As a step towards introducing new technology, four Gas Insulated Sub

The State Government has issued various policies for promoting the establishment of power plants based on Non Conventional Energy Sources. So far, wind generating plants of total installed capacity of 851.84 MW and 3 Biomass based power plants of total capacity of 31.3 MW have been commissioned up to Dec. 09. About 328 MW of wind power plants are scheduled to be commissioned in current financial year out of which 117 MW has already been commissioned.

Stations (GIS) are being constructed in Jaipur. EHV Sub Stations are being computerized. Supervisory Control and Data Acquisition (SCADA) and automation are also being introduced at a number of EHV Sub Stations.

The State has developed sufficient

107

March 2010

6857.51 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Punjab

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 2630.00

Gas 0.00

Diesel 0.00

Thermal 2630.00

0.00

(Renewable) 2230.23

(MNRE) 213.90

5074.13

Private

0.00

57.57

Central

578.19

263.92

0.00

842.11

151.04

732.66

0.00

1725.81

3208.19

263.92

0.00

3472.11

151.04

2962.89

271.47

6857.51

State

Sub-Total

108

March 2010

Punjab stands Tenth in the top ten 10 installed capacity among states, a position which is one step down from the corresponding year. Last year, the state’s installed capacity was 6823 MW in December, while this year it has been overtaken by Rajasthan as the state could increase the figure by only 34.51 MW!

unjab’s installed capacity at the end of the 10th plan was 6088 MW including own generation, share from Bhakra Beas Management Board (BBMB) and various central sector projects. During 11th plan two thermal generation projects namely 500 MW Lehra Mohabat Stage-II and 600 MW Goindwal Sahib Thermal Power Project were commissioned. In addition to this 263 MW Hydel Generation projects are also expected to be commissioned during the 11th Plan. Therefore the total generation is expected to be about 7451 MW at the end of 11th plan against the expected peak demand of 11000 MW during the year 2011-12. The current installed capacity of the state is 6857.51 MW. Therefore it has been planned to develop two Thermal Power Plants at Nabha and Talwandi Sabo having capacity of 1200 MW each on BOO basis. In addition to this long term Power Purchase Agreements are being done for purchase of power. In spite of this there will be shortage of power to the tune of about 1500 MW ending the 11th Plan. Section 63 of the Electricity Act, 2003 provides that Regulatory Commission shall adopt the tariff determined through

109

transparent process of bidding in accordance with the guidelines issued by Central Government. This aims at moving away from cost- plus support for tariff determination and it is expected to further encourage private sector

erstwhile State of Punjab was reorganized under Punjab Re-organization Act, 1966 and the Board in its present form came into existence with effect from the first day of May, 1967. Accordingly the Board is charged with the general

investment. Guidelines for competitive bidding for determination of tariff for procurement of power by distribution licensees were issued on 19th January 2005. The policy stipulates that all future power needs to be procured competitively by distribution licensees

duty of promoting the coordinated development of generation, supply and distribution of electricity within the State in most efficient and economical manner.

except in cases of expansion of existing projects and where Regulators will need to resort to tariff determination based norms.

For development of Talwandi Sabo and Nabha power projects, in order to enhance investors’ confidence, reduce risk perception and good response through competitive bidding, two Special Purpose Vehicles (SPVs) have been setup

Recognizing the above facts that cheaper power can be procured by development of power plants through tariff based competitive bidding, Government of Punjab and PSEB have

as wholly owned companies of PSEB to facilitate tie up of inputs, linkages and clearances for these projects. These companies will undertake preliminary studies and obtain necessary clearances and tie ups including for coal, water,

identified sites for two coal based Thermal Power Projects at Talwandi Sabo and Nabha to be developed on Build, Own and Operate (BOO) basis. These TPPs will meet power needs of Punjab to a great extent. The land for the

acquiring of land, power selling arrangements with PSEB, the sole procurer from these projects, before award of the projects to successful bidders by way of selection of developers through tariff based Competitive Bidding. The SPVs

Project shall be acquired by two SPVs namely Nabha Power Ltd. (NPL) and Talwandi Sabo Power Ltd (TSPL) wholly owned companies of PSEB registered under companies Act 1956. The land shall be handed over to the selected

shall also obtain necessary environmental clearances.

developers after issue of Letter of Intent (LOI) and before the award of the Project.

Punjab State Electricity Board Punjab State Electricity Board was constituted on the 1st February, 1959 under section (5) (1) of the Electricity (Supply) Act, 1948. Subsequently, the

Initiatives PSEB has signed an agreement with Green Planet Energy Private Ltd to purchase 14 mw of power. The move will encourage private entrepreneurs to set up power plants using new and renewable sources of energy in the state. Chairman of PSEB, Harinder Singh Brar said the plant would be set up in Talwandi Rai village near Raikot in Ludhiana and would be completed in 13 months.

March 2010

110

March 2010

With 21091.61 MW, the Eastern Region is at the lowest (above the NorthEastern region) in terms of installed power generation capacity. Among the six states, only West Bengal figures in the Top 10 states with 8149.69 MW and is placed 8th, a position it has retained from December 2008. Damodar Valley Corporation (DVC), a Central Utility has generation capacity more than that of Jharkhand, Bihar and Sikkim. The below rating is as on December 2009. The rating is the grand total capacity generated from State, Private and Central West Bengal 8149.69 utilities. Orissa 4081.33 Damodar Valley Corp 3596.36 Jharkhand 1942.86 Bihar Sikkim Grand Total of Eastern Region Source: Central Electricity Authority

111

1845.73 195.48 21091.61

March 2010

8149.69 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

West Bengal

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

State

Coal 4780.00

Gas 100.00

Diesel 12.06

Thermal 4892.06

0.00

(Renewable) 977.00

(MNRE) 144.50

6013.56

Private

1341.38

0.00

0.14

1341.52

0.00

20.35

1361.87

Central

634.96

0.00

634.96

0.00

139.30

0.00

774.26

6756.34

100.00

12.20

6868.54

0.00

1116.30

164.85

8149.69

Sub-Total

112

March 2010

The power scenario in West Bengal is reasonably satisfactory. The state, whose power deficit is far lower than the national average, is tapping new avenues such as renewable energy to bridge the gap between demand and supply of electricity. The state currently has close to 4,000 mw of power projects in various stages of development and these are likely to be commissioned in the 12th Five-Year plan.

ccording to Debashis Sen, I.A.S, Managing Director, WBPDCL, amazing advances are taking place in the field of power generation today. “The technology adopted in the latest generators commissioned in WBPDCL is unbelievably complex and this is interfaced with equally complex state-of-the-art computerized equipment. Alongside, there are also working units that are twenty five years old or more. The challenge is to operate all the plants 365x24x7, irrespective of technology or age, at optimum levels. This is possible only with the combined efforts of the finest team of experts including power engineers and managers, administrators and cost /

itself with its special issues, calling for the ablest managers to handle,” he said.

WBPDCL To facilitate and meet the fast emerging needs of the state’s evergrowing industrial and domestic requirement, The West Bengal Power Development Corporation Limited, or WBPDCL, a fully state owned company, was incorporated in1985. The primary objective of the Company has always been to promote the business of electric power generation and evacuation for subsequent supply in the state. In fact, presently the total installed capacity of the state is 7501 MW, of which, with a capacity of 4170 MW, this premier state owned Power Utility generates bulk of the State’s power supply. WBPDCL today is capable of generating 3,800 MW of power and this constitutes a major portion of the state’s demand. More additions in its capacity are in the anvil. Its vision is to produce clean power at such volumes and costs that all citizens of the state, however poor, can afford electrical power. Plants ♦ Kolaghat Thermal Power Station ♦ Bakreswar Thermal Power Station ♦ Bandel Thermal Power Station ♦ Santaldih Thermal Power Station ♦ Sagardighi Thermal Power Projects

chartered accountants, technicians and operators, security and fire-brigade personnel.

Future Projects

Indeed, each of its five sites at Kolaghat, Bandel, Bakreswar, Santaldihi and Sagardighi is a unique civilization in

additional programme:

In 11th 5-year Plan, WBPDCL proposed to make the following capacity

♦Katwa (2x660 MW)- Financial closure

Awaited ♦Bakreswar (1x660 MW)- Financial

closure Awaited. ♦Sagardighi (2x660 MW)- Financial

closure Awaited. Plants Kolaghat Thermal Power Station (KTPS) – 6 X 210 MW Located near Mecheda at East Midnapore district along the Main Line of South Eastern Railways that connects Howrah and Nagpur on the banks of Rupnarayan River, the Kolaghat Thermal Power Station has the highest capacity among the State Sector Utilities of West Bengal. In its first phase, three units were commissioned between 1984 and 1990. In the next phase, another three units were commissioned between 1991 and 1993. Today, with six units, all operational, the total installed capacity of the Station stands at 1260 MW. Milestones ♦1 times Meritorious Award winner from

CEA since inception on account of PLF, Peak Generation, Low Specific Oil Consumption, along with Performance… ♦Highest Generation Achieved during

the year 2004-2005 is 7385 MU at a PLF of 66.19%, since inception. ♦Kolaghat Thermal Power Station

received ISO 9001 – 2000 certification from the Bureau of Indian Standard. Till date it remains to be only ISO certified Power Station in West Bengal.

♦Santaldih 6th Unit (1 x 250 MW) -

Financial closure completed 113

March 2010

4081.33 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Orissa

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 420.00

Gas 0.00

Diesel 0.00

Thermal 420.00

0.00

(Renewable) 2083.92

(MNRE) 64.30

2568.22

Private

0.00

Central

1408.10

0.00

1408.10

0.00

105.01

0.00

1513.11

Sub-Total

1828.10

0.00

1828.10

0.00

2188.93

64.30

4081.33

State

114

March 2010

Orissa has been a pioneer among States in India in embarking on a comprehensive reform of the electricity industry of the State. The aim of the reform is to address the fundamental issues underlying poor performance of the Orissa State Electricity Board and restructure the power sector. The objective to make power supply more efficient, meet the needs of a growing economy and develop an economically viable power industry which will enable Orissa to attract private capital while safeguarding the interests of the consumers.

ike in power tariff has become essential in Orissa, a power surplus state barely

a year ago, which is now passing through a phase of severe crisis. In order to meet the power requirement, the state has to purchase electricity from other states at a higher price and the tariff would be hiked under such circumstances. The state is presently facing shortage of about 500 MW to 600 MW daily. While the requirement was about 3,000 MW, the state could arrange only 2400 MW from various sources. Orissa government has also chalked out a contingency plan to revamp the power transmission scenario by infusing Rs 3,000 crore for infrastructural development within next three years in the state.

115

Major changes would be made in the Grid sub-stations, KV lines to cut the transmission losses and provide quality service to the people in the state. Orissa Power Transmission Limited (OPTCL) would invest Rs 2,000 crore in the transmission sector while the rest amount would be provided to GRIDCO to provide quality service to the consumers. The mega investment plan is likely to solve the low-voltage problem apart from cutting the transportation and transmission ratio to the benefit of the people. Similarly, the issue of grid collapse would be checked completely. The government has also asked the power transmission companies to submit a report on the problems faced by them in electricity transmission. As per the officials, KV lines in 62,000 kms out of total 86,000 kms needs to be changed at the earliest and hence such kind of investment was much needed. Apart from this, the government has also placed a demand of Rs 5000 crore before the finance commission for the development of infrastructure in the power sector in the state.

the State of Orissa. These Units have become operational since 1994 (1st Unit) and 1996 (2nd Unit) respectively. The entire generation from these units are committed to Gridco – the state owned Power Transmission & Trading Company on the basis of a longterm power purchase agreement. As a part of the reform in the energy sector of the state, 49% of the equity was divested in favour of a Private investor ( American Company) i.e. AES Corporation, USA in early 1999. OPGC with its present ownership structure is unique of its kind in the country and has excellent track record of plant performance and earnings. The Company has owned many state as well as national level awards and recognition Today OPGC has firmly established its credentials as a successful power generating company both technically & commercially by providing safe, clean & reliable power. Strengths ♦This is a Pithead Power plant with coal

OPGC Orissa Power Generation Corporation Limited (OPGC) was incorporated on November 14, 1984. OPGC started as a wholly owned Government Company of the State of Orissa with the main objective of establishing, operating & maintaining Thermal power generating stations. In the pursuit of its objective, OPGC established IB Thermal Power Station having two units of 210 MW each in the

field located nearby & a Merry go round system for Coal transportation. ♦There is adequate water availability

from the nearby Hirakud Reservoir with an Intake Channel connected to Reservoir. ♦Long term PPA with the State Power

Transmission utility i.e. GRIDCO for 100% off-take. ♦Payment security mechanism compris-

ing Escrow Account and revolving Letter of Credit with Gridco.

Ib valley area of Jharsuguda District in

March 2010

♦IBTPS received State Safety Award for

“Best Environment Management” Year 2002-03 from Director of Factories & Boilers, Orissa on 27th Nov’2004. ♦IBTPS celebrated 21st foundation Day

of OPGC on 14th Nov. ♦OPGC received prestigious Greentech

Environment Excellence Gold Award 2003-04. ♦OPGC has launched the official website

(www.opgc.co.in) on 16th October 2004. ♦“IBTPS has received the prestigious ♦Infrastructure like land and common

facilities are already available for expansion of two more units. ♦A Dedicated workforce of Young

Engineers & support staff. Achievements ♦Received the CII award (1st) in Best

Practices on SHE on 20th Nov 2009 ♦OPGC received the “Greentech

Environment Excellence Gold Award” for the year 2008 in the 9th Greentech Environment Award function in Goa on 5th September 08. ♦OPGC Received the Greentech Safety

Award - 2008 Gold for outstanding achievement in Safety Management. ♦OPGC received First Prize in Lowest

weighted frequency rate of Accident. ♦OPGC received Greentech Safety GOLD

Award-2007 ♦OPGC received Greentech Environment

Excellence Gold Award-2006 ♦OPGC received GREENTECH Safety

GOLD Award 2006 in Coal based Power sector for Outstanding achievement in

116

safety management from Greentech foundation. ♦OPGC received Safety Award from

Directorate of Factories & Boilers, Orissa for “ 1st Prize in Longest Accident Free Period category for the yr.2004”. ♦OPGC Declares interim dividend for

ISO 14001 Certification from BVQI on 14th October”. ♦IB Thermal Power Station has been

awarded ‘Silver Shield’ on 24th August 2004. ♦Bhumi Puja for expansion of Units 3 & 4

(2 X 250MW) of IB Thermal Power Station was held on 23rd Aug 2004.

2005-06. ♦OPGC (ITPS) received “CII-Orissa

Award for Best Practices in Environment , Safety & Health (ESH)-Runner”. ♦OPGC (ITPS) has been selected for the

prestigious “Greentech Environment Excellence Gold Award in Thermal Power Sector for the year 2004-2005”. ♦OPGC nominates Public Information

Officers under the ‘Right to Information Act,2005’. ♦OPGC declares second interim dividend

for the year 2004-05. ♦IBTPS has received OHSAS 18000

certification from BVQI from 05th May 2005.

Orissa government has also chalked out a contingency plan to revamp the power transmission scenario by infusing Rs 3,000 crore for infrastructural development within next three years in the state. Major changes would be made in the Grid sub-stations, KV lines to cut the transmission losses and provide quality service to the people in the state.

♦OPGC received “Greentech Safety Gold

Award (2004-05) in Power Sector”.

March 2010

117

March 2010

1492.86 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Jharkhand

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 1190.00

Gas 0.00

Diesel 0.00

Thermal 1190.00

0.00

(Renewable) 130.00

(MNRE) 4.05

1324.05

Private

360.00

0.00

360.00

0.00

360.00

Central

187.88

0.00

187.88

0.00

70.93

0.00

258.81

1737.88

0.00

1737.88

0.00

200.93

4.05

1942.86

State

Sub-Total

118

March 2010

Jharkhand State is rich in mineral but still it is a poor state reason being absence of viable industries in good number. It is basically due to shortage in power generation and old in-sufficient distribution system. But the potential is huge and the scope enormous.

he availability of Coal in abundance makes Jharkhand an ideal state for setting up Thermal Power Plants at the Coal Pits. With the abolition of freight-equalization, there is tremendous cost advantage in setting up thermal power plants at the Coal pit itself. The Present total installed power capacity is 2590 MW. In view of future requirements NTPC, DVC and State PSUs setting up different plants with total capacity of 4736 MW. Due to several new investments in manufacturing setups coming up, the demand for Power both within the state and the nearby states will increase manifold. There is also scope for setting up Hydel power plants. 67 Hydel Power generation sites have been identified for this purpose. The development of electric power generation and supply some how could not receive due attention and priorities in the erstwhile Integrated State of Blhar. In spite of being the second most populous and being endowed with all natural resources, the State had the distinction of having the least capacity of power generation. The State had paltry 1900 MW Installed capacity i.e. a meager 20 watts per capita as against

119

National average of 100 watts per capita. However, after reorganization of the State into two smaller States, Bihar and Jharkhand -the Land of Forests, the Government of Jharkhand has decided and is determined to take quantum jumps in generating capacity addition from its present figure of about 1400 MW - its inheritance from the integrated state. The state of Jharkhand has taken up this as a challenging opportunity and scope to develop.

The Aim and Objective Presently, India’s power generating Installed capacity is little above 100,000 MW with a Thermal-Hydel Mix in the ratio of 76:24. The present generation level is such that it provides an average per capita electric energy consumption of around 450 kWh for a population of 1000 million people. The state of Jharkhand has also aimed to raise its present level of per capita energy consumption of about 200 kWh to very near to national average by 10th Plan i.e. the year 2007 and thereafter Improve further in consonance and compatibility with best of states like Punjab, Haryana, Tamil Nadu, Gujarat, etc. To fall in line with the planning and proposals of Government of India for power development, the State aspires to enhance its generating capacity by more than double by 11th Plan i.e. 2012, the year by which poweron-demand to the people is committed. Currently, the objective od the state’s power sector is to enhance prospective power projects, which nave been sanctioned and cleared from the respective agencies and also other potential areas where private entrepreneurs could consider investment.

Initiatives Taken In a short span of about 2½ years after coming to existence, the Government of Jharkhand has taken the following initiatives in the direction of power development: ♦State’s industrial policy was formulated

to promote and enhance the industrial base and thus increase in demand for electric power. ♦Jharkhand State Electricity Board was

established. The Board’s organizational set up was planned to be on profit center concept with due accountability & authority to downthe-rung units. ♦The State Government has signed

Memorandum of Understanding with Government of India as a token of Its commit to the reforms in the power sector as formulated by the Union Government, Department of power, on 30.04.2001 ♦Decision was taken to open the state

power sector for private Investment and extend all due facilitation and incentive to the investors. ♦Rural electrification has been accorded

top priority. ♦The work on renovation & moderniza-

tion of existing power generating station as well as transmission and distribution system is in progress.

The Strategy The strategy, in essence, of the Government of the state and Jharkhand State Electricity Board is not to leave any stone unturned, to develop the power sector of the State i.e.

March 2010

♦To go all out for power sector reforms.

♦Compatible development of power

transmission and distribution network in the state, co-concurrent with the thrust on generating capacity. ♦Harnessing renewable energy source

i.e. Biomass power generation

Solar power for rural and also strategy location in urban areas

The Prospective Projects Thermal

Solid waste utilization & management

♦ In conventional power generating

The new identified investigated and techno-economically effective, power projects in the state which could be

sector, install pit - head power stations to reduced menace of coal

taken up for Implementation, during 10th & 11th Plan are indicated in Table X.

ash, etc. of Its own as well as welcome entrepreneurs to invest in the sector.

Hydel

Micro / Mini / Small hydro power schemes

The new, identified, investigated and techno economically effective and

Prospective Coal Based Power Projects (Table X) Description

Capacity

Communication

Status

Chandil Thermal Power station

4x500 MW

Rail/Road

DPR/ ELA

Tenughat Thermal Power Station

3x210 MW

Rail/Road

DPR Prepared

North KaranpuraPower Station

4x500 MW

Rail/Road

DPR/EW^MP

Lalmatia Power Station

2x210 MW

Rail/Road

To be

Chitra Power Station

2x210 MW

Rail/Road

To be

Barhi Power Station

2x310 MW

Rail/Road

To be

PTPS Extension

2x210 MW

Rail/Road

Extension

Rajmahal Power Station, Godda

4x210 MW

Rail/Road

To be

Auranga Power -Station, Daltonganj

2x210 MW

Rail/Road

To be

Ramgarh Power Station, Hazaribagh

3x210 MW

Rail/Road

To be

West-Bokaro Power Station, Hazaribagh3x210 MW

Rail/Road

To be

Type Green Field reports made earlier are under updatlon Coal, Water Identified Sanctioned Extension of existing 2 x 210 MW Green Field prepared taken up for development by NIPC as 3 x 660 MW New green field Investigated New green field Investigated New green field Investigated New green field New green field Investigated New green field Investigated New green field investigated New green field investigated

120

March 2010

sanctioned Hydel power projects are indicated in Table Y.

already in the process of extracting out the gas. The gas can be used for electric power generation - through small/

Power Generation from Non - Conventional Sources

medium size stations. The total availability of Coal Bed Methane in Jharkhand is assessed about 3 to 5 million cubic meters per day.

In addition to hydel sites, there are about 70 sites of small / mini / micro hydro power schemes, all put together

Geothermal

can generate 100 MW power, station capacities ranging up to 3 MW. The sites are mostly investigated, under investigation and can be taken up for development. The Government of India, Ministry of Non - Conventional Energy Sources (MNES) UNDP, extends lot of facilitation and incentives for this type of projects and also other non -conventional sources, biomass, etc.

As per the recent assessments and investigations carried out, India has large potential of Geothermal Energy, which can be gainfully utilized for power generation, Jharkhand possess a good share of these. Of the total recorded site of 340 in India (by Geothermal Education office - US), 60 sites could be in Jharkhand.

Small / Mini / Micro Power Projects in Jharkhand

The State of Jharkhand has large scope for power generating from biomass and solar specially for rural areas.

Coal Bed Methane State is endowed with lot of coal resources. Recently, large reserves of coal-associated gas - coal bed methane have been identified. ONGC - India is

Installed Capacity The total installed capacity of Small/ Mini/Micro hydel power in Jharkhand Is 4050 kW, out of which 4000 kW of Tilaiya SHP is owned by DVC and 50 kW (5x10 kW of Portable Micro Hydel Sets) is owned by Blhar State Hydro-Electric Power Corporation (BHPC).

Present Generation The 5x10 KW of Portable Micro Hydel Sets are isolated project and supply the power to nearby villages of Jalimghagh, Nindighagh and Goutamghagh who require electricity for domestic lighting only. However, these sites have potential of generating such capacity of power round the clock over the year. Besides this 2 nos. of new projects of 200 KV each one at Jonhaghagh and one at Nindighagh are being constructed under UNDP.

The Present total installed power capacity is 2590 MW. In view of future requirements NTPC, DVC and State PSUs setting up different plants with total capacity of 4736 MW. Due to several new investments in manufacturing setups coming up, the demand for Power both within the state and the nearby states will increase manifold.

Prospective Hydel Power Projects - Table Y Description Sankh - II Hydel Power Station Kanhar Hydel Power Station Tilaiya Dhadhar

Capacity MW

Status

Type

2 x 3 + 2 x 90 MW

DPR/FR made Sanctioned

Green Field

3 x 100 MW

DPR/FR made Sanctioned

Green Held Pump Storage

2 x 25 MW

DPR/FR made Sanctioned

Existing Site

DPR/FR made Sanctioned

Existing Dam toe and

Sikidiri â&#x20AC;&#x201C; Small Hydro

tail race of existing station Dassam

40 MW

Jonha Mohane

121

120 MW

Investigated Proven

Green Field Pump Storage

Investigated Proven

Green Field Pump Storage

Investigated Proven

Green Field Pump Storage

March 2010

122

March 2010

At the bottom, with a low figure of 2284.82, the North-Eastern regionâ&#x20AC;&#x2122;s installed power generation capacity is 2284.82 with none of the Seven states have been able to touch the 4-digit mark. This figure just reasserts the immense state of isolation that the seven sisters of the country are living in, primarily because it is not just in the power generation arena, but in their entirety itself, they have been living in seclusion. The below rating is as on December 2009. The rating is the grand total capacity generated from State, Private and Central utilities. Assam Meghalaya Tripura Arunachal Pradesh Manipur Mizoram Nagaland Grand Total of Northern Region Source: Central Electricity Authority

123

978.84 289.62 244.07 201.84 157.80 126.92 103.18 2284.82

March 2010

978.84 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Assam

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 60.00

Gas 239.00

Diesel 20.69

Thermal 319.69

0.00

(Renewable) 100.00

(MNRE) 27.11

446.80

Private

0.00

24.50

0.00

24.50

0.00

24.50

Central

0.00

177.82

0.00

177.82

0.00

329.72

0.00

507.54

60.00

441.32

20.69

522.01

0.00

429.72

27.11

978.84

State

Sub-Total

124

March 2010

Electricity consumption per capita in Assam is one of the lowest in the country. The per capita electricity supplied is a mere 116 kwhr/person/year. This is only one fourth of the all India per capita generation of 479 kwhr and one hundredth of per capita consumption in the United States which exceeds 12000 kwhr. The gap is large and is so in spite of large resources in Assam and the North-East. The abysmally low per capita consumption of electricity reflects both poor quality of life and low level of economic activities.

he power scenario is uncer tain. Today, Assam State Electricity Board’s (ASEB) installed capacity is about 507.54 MW and with the state share of about 446.80 Mw in central generating stations of North-East region, the total capacity works out to about 954.34 MW. Assam also has 24.50 MW installed capacity in Hydro. With the commissioning of 405 MW Ranganadi Hydro Electric Power Project in the near future and its share of about 105 MW in this, Assam’s capacity is expected to touch about 1050 MW. Assam’s unrestricted peak demand of about 650-700 MW should logically give zero energy and peaking shortage. However, unless pilferage is arrested and the liquidity, solvency and escrow-ability of ASEB improves to buy power from UEEPCO, NTPC, MSEB, etc. and improvements are made in the very poor quality

125

of T&D system, inadequate transformation capacity, insufficient capacitor banks and high density of low tension (LT) lines vis-a-vis high tension (HT) lines it may not be possible to supply quality power at competitive rates to the consumers. If

Central Pool Resources. ASEB had floated global tenders for implementation of the 30 MW x 3 Amguri Gas Based Power Project and 60 MW x 2 Borgolai Coal Fired Thermal Power Project through the Independent Power Producer

all the projects that were under implementation in March 1996 were to be completed, the NE would have a total installed generating capacity of 3396 MW, enough to meet its demand for some years.

(IPP) route. While no bid was offered for the Borgolai Project, one bid was received for the Amguri Project that is being processed by ASEB. The 20 MW Dhansiri HEP is stuck up because the concomitant irrigation project has not been completed. The 150 MW Lower

Assam’s power sector is riddled with a hydel thermal imbalance as 100 per cent of the state’s power generation capacity is thermal; plant load factor (PLF) is 18 per cent (as the 60MW Chandrapur Thermal Power Station has been closed down due to high price of fuels; the 240 MW Bongaigaon Thermal Power Station hardly generates due to poor coal linkage and abinito structural problems in turbo-generators and the Lakowa TPS suffers from inadequate quantity and pressure of gas. This is further compounded by the steep load curve of Assam where the peaking load is twice the non-peaking load due to high domestic demand; T&D loss is a staggering 50 per cent; peaking shortage is 12.5 per cent; energy shortage is 4.5 per cent and the gap between the average cost of supply and the average tariff is a figure of Rs 4.00 per unit. With the assistance of a loan of Rs125 crore from Power Finance Corporation (PFC), Delhi, ASEB is committed to complete the long languishing run of the river (ROR) 100 MW Karbi Longpi Hydro Electric Power Project. The ASEB also proposes to pose the 38 MW Waste Heat Power Project at Lakowa to JBIC, ADB and the Planning Commission under the non-lapsable

Kopili HEP was to be handed over to NEEPCO for implementation but could not be done due to some issues raised by the North Cachar and Karbi Anglong District Councils which could not be resolved. One may note that many of the projects under implementation are hydel projects. The NE has a phenomenal hydel potential, so in the long run NE including Assam, should not be short of power. The problem has been poor implementation of projects. Power sector reforms have become critical to improve the financial position of ASEB. Power sector reforms are under way. But the persistent power shortages and poor quality of power make consumers dissatisfied. The cost of power charged to industries has gone up to levels, which induce them to go for captive power. Also, it makes power intensive industries uncompetitive. The poor quality and interruptions in supply affect the competitiveness of other industries as well. Their financial sickness reflected in their inability to pay their suppliers, inability to arrest theft and pilferage, and inability to generate surplus let alone adequate return on investment all call for reforms of SEBs.

March 2010

289.62 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Meghalaya

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 0.00

Gas 0.00

Diesel 2.05

Thermal 2.05

0.00

(Renewable) 156.00

(MNRE) 31.03

189.08

Private

0.00

Central

0.00

25.96

0.00

25.96

0.00

74.58

0.00

100.54

Sub-Total

0.00

25.96

2.05

28.01

0.00

230.58

31.03

289.62

State

126

March 2010

At present, Meghalaya has only hydro generation. During non-monsoon period, availability of power becomes low and even the restricted load demand of the State has to be met through import of power from the NE grid. This is mainly due to the new liberalized industrial policy of Meghalaya that has triggered an unprecedented load growth in the industrial sector of Meghalaya, coupled with identical growth in other sectors due to accelerated power development and reform process

he Me.S.E.B.â&#x20AC;&#x2122;s own Hydel power generation capacity is only 185.2 MW and central power share is approximately 132 MW. This capacity is unable to cater the present requirement of power and increase in demand. Moreover, the average annual energy generation from State own Power Stations are around 450 MU only. The energy availability, in all probabilities shall remain at 450 MU for years to come till commissioning of the 84 MW, Myntdu Leshka Hydro Electric Project of 2 x 42 MW capacity in 2007-08. With the phenomenal increase in power demand owing to growth of industries the unrestricted peak load demand for the year 2007-08 was projected at 610 MW. It is expected that with the present trend of increase in peak load, the anticipated unrestricted peak demand of Meghalaya at the end of 11th Plan, would be of the order of 800 MW.

127

To meet the demand, Meghalaya has to import power but this too has a limitation due to transmission and transformation constraints, where MeSEB can draw only 120-140 MW and 60-80 MW during off peak and peak hours respectively. It would still be difficult to cope with the actual peak load demand of the State even with the commissioning of 84 MW in 2007-08 and another 40 MW of New Umtru by 2009-10. Therefore, to meet this critical situation, Meghalaya has to explore an immediate remedy in capacity addition and improvement of inter state transmission networks. The existing transmission network such as the 132 KV Guwahati line - I & II also need immediate renovation and changing of conductors. A transmission network master plan which is urgently required is being prepared for the state, so that power evacuation from the various potential sites could be put in place. This would also serve as a mean for easy drawal of power by industrial consumers of different districts under open access as envisaged in the IE Act, 2003. To meet the immediate shortage of power and to protect the State from probable collapse of power supply due to failure of monsoon, it is of utmost importance to immediately develop thermal power stations in the State. In Meghalaya there is not a single thermal power station and hence the prescribed thermal - hydro mix is not available at all. This over-dependence on nature is a very critical and dangerous position in view of vagaries of monsoon and in the event of drought in this part of the region. A thermal project of suitable capacity to provide base load is neces-

sary. This would also provide an ideal thermal - hydro mix at 60 : 40 ratio which will provide better stability and security in the power system of Meghalaya throughout the year. Side by side, the development of hydro power in the State shall take place at a pace to meet the need as per the power surveys and every district of the state shall have a H.E. plant for their overall development. The development of mini, micro and small hydel projects have not taken off appreciably and therefore the State of Meghalaya shall take up the task of developing the enormous potential of the mini, micro and small hydel project to produce and supplement cheap, reliable, unpolluted and non-wasting source of electric energy of the state to supply power to the isolated and remote areas of the State. Although 100% System metering was completed in November 2004, Energy auditing is still in its infancy stage due to lack of infrastructure for a fully computerized system of auditing and also due to lack of DT metering, absence of proper consumer indexing, and inadequate consumer metering and billing. The reforms and restructuring of the State Electricity Board is likely to be completed shortly. Due to the liberalized Industrial policy of the Government, the growth in the industrial sector is expected to grow exponentially. Thus exponential growth in generation capacity addition appears to be the need of the day. The growth in the domestic / commercial front is still manageable even till the end of the 11th Plan and further.

March 2010

244.07 MW

TOTAL INSTALLED CAPACITY (AS ON DECEMBER 2009)

Tripura

Ownership Sector

Modewise breakup Thermal

Total

Nuclear

Hydro

RES**

Gr.Total

Coal 0.00

Gas 127.50

Diesel 4.85

Thermal 132.35

0.00

(Renewable) 0.00

(MNRE) 16.01

148.36

Private

0.00

Central

0.00

33.34

0.00

33.34

0.00

62.37

0.00

95.71

0.00

160.84

4.85

165.69

0.00

62.37

16.01

244.07

State

Sub-Total

128

March 2010

Though Tripura is small in size, the state is always big and bold in catching up the latest on the reforms front in the country. The state has set up its own TREC under the Indian Companies Act-56 with an authorised equity share of Rs. 10 Crores. Currently the state has an installed capacity of 244.07MW which includes 165.69 MW from thermal and 16.01MW from the Hydel.

he Power sector scenario in Tripura has had a complete revamp during the past 5 years. Until 2004, Generation, Transmission and Distribution of electricity in the State were directly taken care by the Department of Power, under the government. As a significant step towards reform in the Stateâ&#x20AC;&#x2122;s power sector, the Government of Tripura created the Tripura State Electricity Corporation Limited as a wholly State owned company to look after the entire business of Generation, Transmission and Distribution of electricity in the State. Thus was born TSECL (Tripura State Electricity Corporation Limited which was

operationalised since 1st January 2005. In line with the provision of the MOU between Ministry of Power, Government of India and Government of Tripura, the State Government decided to introduce reforms in the power sector in the state

The important power projects that had contributed their share to the installed capacity of the state in 2007-08 were Gumti Hydro Electricity project with 15.00MW, Baramura Gas Thermal Projects with 21.00MW and Rokhia Gas

and restructure the sector with objectives of creating the conditions for the sustainable development of the power sector in the state and improving the efficiency of services to the people of Tripura.

Thermal Project with an installed capacity of 74 MW.

So, in 2002, the Government of Tripura entrusted the Administrative Staff College of India (ASCI), Hyderabad to provide consultancy services to assess restructuring options and recommend suitable organisation structure for the power sector. The assignment also included interalia the financial restructuring plan and formulation of implementation programme. As per the ASCI recommendations, Tripura Electricity Regulatory Commission (TERC) was set up on 31st May 2004 and subsequently, Tripura State Electricity Corporation Limited (TSECL), Agartala was incorporated under the Indian Companies Act-56 on 9th June 2004 as a State owned Company with authorised equity share capital of Rs.10 crores.

Gumti H.E Project Baramura Gas Thermal Project Rokhia Gas Thermal Project Total

129

also operational since pre-independence. Out of these stations, first three units of Baramura gas station (French Make) and first two unit (Phase-I) of Rokhia Project are not working because of obsolesce. Therefore effective Installed Capacity was set at 110.00 MW. The state power systems in the North Eastern Region are integrated with 400/220 kV network of Power Grid Corporation of India Ltd. The other important projects which are proposed to add to the generation capacity of power sector in the state include 105 MW CCGT project at Chakmaghat, 104 MW TGBPP at Manarchwak by NEEPCO and 740 MW CCGT at Plaatana by OTPC. Of late, after a six-year uncertainty, the Oil and Natural Gas Corp (ONGC) has finally agreed to provide natural gas for the 104 MW capacity Monarchak thermal power plant in Tripura. The deal has revived the Rs 30.6 billion combined cycle power plant project, which is now expected to be

As on (2007-08) Name of Project

In addition to this, it has diesel based generating units of 5.85MW, which

Installed Capacity

Effective Capacity

5x3=15.00 MW

8.5 MW

21x1=21.00 MW

21.00 MW

8x4+21x2=74.00 MW

50.00 MW

110.00 MW

79.50 MW

commissioned by October 2010. Meanwhile it is also proposed that ONGC would commission a 750 MW capacity mega power project in south Tripuraâ&#x20AC;&#x2122;s Palatana, which is expected to be operational by 2012.

March 2010

“SOON GPIL WILL BE VENTURING INTO ENVIRONMENTAL FRIENDLY PROJECTS LIKE CARBON TRADING” Gupta Power Infrastructure Limited (GPIL) is an ISO 9001:2008 certified company manufacturing all types & sizes of Cables, Conductors & PSC Poles. With a turnover exceeding Rs.700 Crores, product profile of GPIL includes all types of Overhead Conductors, LT/HT Power Cables, Control Cables, Instrumentation Cables, Mining Cables, Special Cables, PSC Poles and Rural Electrification Work.

130

March 2010

n the year 1961, the Company was set up under the name & style of Gupta Cables (P) Ltd. for manufacturing of PVC Wires & Cables. Subsequently during the year 1970 the company took over the management and manufacturing of bare 7 strands aluminum conductor. With the passage of time the company has grown in stature and graduated with many distinctions to be known as Gupta Power Infrastructure Ltd. (GPIL); a more than Rs. 700 Crores annual turnover manufacturing Power House of all types of Conductors & Cables including EHV having daily production in excess of 300 MT backed up with own Aluminium Re-rolling Properzi Plant. “We have been constantly updating ourselves with the changing needs by expanding & diversifying our activities to areas of interest such as having own EPC Divn., PSC Pole Divn., Real Estate, Hospitality sectors, Power generation & distribution, thereby withstanding completion from various sources, ensuring market sustainability & making our business recession proof. Power sector boom has encouraged us to go for massive expansion of our existing units

as well as establishment of new units at strategic areas of the country. Our EPC Division is actively engaged in massive rural electrification programmes of Central & State Govt. and we have penetrated into every nook & corner of

company has become a single window solution to provide generation-next products at affordable price with shortest delivery schedule and render 24/7 trouble shooting services to the complete satisfaction of its customers

the country, reaching out to ensuring a better living standard for the common man very much in line with our theme ‘Making life better on earth’. All through this long journey we have kept our basics simple and stuck to the principles & philosophy of our founder Late Jagdish

while strengthening its intellectual assets and creating an organization confident of its abilities and talent. The company has been committed to:

Rai Gupta – ‘Truthfulness, Honesty, Commitment, Desire for happiness and Welfare of mankind’,” said Mahendra Kumar Gupta, Managing Director, Gupta Power Infrastructure Limited. GPIL with its experienced and committed workforce has created its own EPC division executing village electrification work under Biju Gram Jyoti Yojana (BGJY) and Rajiv Gandhi Gramin Vidyuti Karan Yojana (RGGVY) in remote areas of Orissa thereby adding to the infrastructure development of the State.

USP Being the leading manufacturer of Power Conductor, Cables, Poles, etc. the

♦Develop a culture that creates trust. ♦Maintain both transactional as well as

relationship based sales – Once a buyer is always a customer. ♦Maintain Corporate Social Responsibil-

ity in the following areas: Rendering

marketing assistance to local tiny MSMEs by utilizing their products in the village electrification works thereby contributing to generation of direct & indirect employment and growth of industrialization as a whole.

Plantation

of trees in barren lands to support environmental and green peace norms.

Adopting

schools in tribal areas.

Reaching

out to the distressed and

“We are exploring the possibility of strategic alliance with sound foreign collaborator for upgrading to highest level of cables manufacturing and Joint Venture alliances for our EPC division for construction of Substation as well as EHV Line construction works on turnkey basis”

- Mahendra Kumar Gupta, MD, GPIL

131

March 2010

& Alloy wire Rods is one of the best plants in Orissa. Product range: ♦EC/Alloy Wire Rods in all sizes. ♦Aluminium Alloy Wire Rods (in line

solutionised). ♦Deoxidisation Aluminium Coils

(Flipping coils) Conductor Division: The company is an ISO 9001:2008 certified leading

providing relief to them at the time of natural calamities & crisis.

Achievements “It is not important where we stand, but in what direction we are moving. Recession couldn’t cast its shadow on us. We achieved more than 30% growth in turnover compared to previous year .GPIL not only maintained the profit level but also invested on high technology machineries for better quality and productivity . We have established our GPower brand of cables in the market with customers’ satisfaction. Our EPC Division has successfully illuminated near about 1000 villages in Orissa with the vision of social transformation of rural India. Among other accolades we received the Outstanding Company award in 2008-09 by the Chief Minister of Orissa, Naveen Patnaik,” said Gupta. Some of the awards bestowed on GPIL are: ♦“Best Entrepreneur Award” from Chief

Minister of Orissa, Naveen Patnaik. ♦“National Award 2008 for Outstanding

Entrepreneurship“ from the Prime 132

Minister of India. ♦“Think Odisha Leadership Award for

Business Leader 2009 “organized by Times of India.

R&D Infrastructure GPIL has been maintaining a successful track record since last four decades. GPIL as a BVQI certified ISO 9000:2008 company has a fully equipped sophisticated ultramodern Laboratory inside its factory premises with separate R&D and quality control wing constantly monitoring the process. In view of the unprecedented boom in power sector, the company has set up fully integrated plants in Kashipur (Utaranchal) , Khurda (Orissa) and in Gummidipoondi (Tamil Nadu).

Products Properzi Division (Continuous casting & rolling mill): The company has gone a step towards backward integration for its conductor and cable division. The company’s state of the art Properzi plants (Continuous casting & rolling mill) for production of Aluminium

manufacturer of all types & sizes of Aluminium & Alloy bare electrical transmission line conductor. During its long 50 years existence the company has developed a pool of satisfied customers consisting of major power players like POWERGRID, NTPC & NHPC, State Electricity Boards, other power utilities and big turnkey contractors. The company has the distinction of being one of the few mainstream manufacturers of extra high voltage power conductor in India and is striving hard to develop new generation energy saving high temperature endurance conductors through utilization of super conductor technology. Product range: ♦All Aluminium Conductor (AAC) ♦All Aluminium Alloy Conductor (AAAC) ♦Aluminium Conductor Steel Reinforced

(ACSR) ♦Aluminium Conductor Steel Reinforced

(ACSR) (Extra High Voltage conductors) ♦Aluminium Alloy Conductor Steel

Reinforced(AACSR) Cable Division: While the

March 2010

company is more renowned for its bare conductor business, keeping an eye on the changing scenario and to safeguard power theft, of late, the company has diversified its activities to manufacture of energy conserving power cables with the

Poles within minimum time.

most advanced technology. Its comprehensive “G-Power” range of cables are guaranteed for sturdy use & weather resistance; have excellent energy transmission with minimum losses which speaks for the stringent quality standards; and are backed by technical

Project Division

expertise maintained by the company. GPIL strives to have a significant presence of its “G Power” Brand of Cables in different environmental conditions in Steel Plants, power Generation, Infrastructure Projects, Cement Plants, Oil & Refinery, Gas Processing and other areas. Product range: ♦HT Power Cables upto 33 KV ♦LT/XLPE/PVC Power Cables 1.1 KV ♦Control Cables ♦Instrumentation / Signal Cables ♦Thermocouple Extension/Compensat-

ing cables ♦Aerial Bunched Cables ♦House Wire/Flexible Wire ♦Fire Survival Cables ♦Mining Cables ♦Special Cables

PSC Pole Division: The company has added another feather to its cap by installing a PSC Pole manufacturing unit with the latest steam curing technology for quick setting so as to ensure maximum production of best quality PSC

133

Product range: ♦8 Mtr./200 Kg PSC Poles ♦9 Mtr /300 Kg PSC Poles

♦Turnkey Electrification works especially

Rural Electrification Works.

Govt. of India. “As a Star Export House we are exploring export possibilities in many countries. Our export Turnover graph shows a stiff rise in our export activities. But you cannot ignore the fact that there is a boom in Indian Power Sector, therefore, we are maintaining a balance of both domestic & foreign markets,” said Gupta. GPIL is a recognized Export House

Diversification plans “Acute power crisis has become most challenging task before everybody. It is therefore prudent that all concerned should rise to the occasion for accomplishing this task. We are already into Solar Power Project for which land acquisition as well as DPR is complete. Very soon we will be venturing into environmental friendly projects like Carbon trading. These are besides generalized diversification of our activities to other key manufacturing areas like Tower manufacturing, Transmission Line & Substation Projects. We are exploring the possibility of strategic alliance with sound foreign collaborator for upgrading to highest level of cables manufacturing and Joint Venture alliances for our EPC division for construction of Substation as well as EHV Line construction works on turnkey basis,” said Gupta. The company is also coming out with public issues and listing which is under process. The company is a regular supplier to almost all the major power utilities in India including POWERGRID, NTPC & NHPC. Besides it has widened its overseas marketing network from Afghanistan to the Middle East. Standing testimony to its increased export activities is the certification of Star

status holder under Ministry of Commerce, Govt. of India. GPIL is a regular supplier of Conductors to various Deemed Export projects in India. The company has started physical exports on regular basis. Within a very short period the company has successfully executed exports of conductors to different countries. Further export orders for conductors and cables are in pipeline. However, this does not stop the company from achieving growth and higher targets. The Export department is fully equipped with latest tools of communication and skilled manpower, committed to provide best possible services to customers at any stage of order / enquiry process and ensure timely delivery. Imports are generally made from confirmed and reputed sources like Pechiney Inc. USA, VAW Aluminium, Australia and other LME registered sources.

In view of the unprecedented boom in power sector, the company has set up fully integrated plants in Kashipur (Uttaranchal), Khurda (Orissa) and in Gummidipoondi (Tamil Nadu).

Export House, by Ministry of Commerce, March 2010

“THE GROUP’S VISION IS TO CREATE AN ENTREPRENEURIAL ORGANISATION THAT MAKES A DIFFERENCE TO SOCIETY” Established in 1978, GMR Group is one of India’s leading and fastest growing private sector organisations, which has interests in the areas of Infrastructure, Sports as well as Agri-business. Over the last decade or so, the Group has made a conscious effort to restructure its diversified portfolio to focus on infrastructure as the core business. This has enabled the Group to position itself as an India-based global infrastructure major and the “preferred partner” of governments the world over in the task of “Creating Tomorrow Today”. The GMR Group, today, enjoys a geographical footprint spanning four continents and a presence across key industry sectors such as Energy, Highways, Airports and Urban Infrastructure (UI)

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he GMR Group is a prominent contributor to the Indian power sector through various projects across various fuel types (hydro, thermal and natural gas). The Group capitalized on the private investment policy of the Government in constructing, developing and managing power plants. “The Group has established three operational power plants and is currently developing nine power projects. The Group has plans to enhance its installed power generation capacity from the current 808 MW to more than 6500 MW over the next 3-4 years,” said B V N Rao, Chairman, GMR Energy.

Energy GMR Power Corporation Private Limited, Tamil Nadu: Commissioned in 1998, the 200 MW Chennai plant is the first Independent Power Project in Tamil Nadu. The plant has India’s first and only sophisticated sewage treatment unit, treating 7200 cubic meters of sewage per day to produce 4200 cubic meters of fresh water for plant usage. The power

plant has received the renowned Dr. M. S. Swaminathan Foundation Award for Environment Protection. GMR Energy Limited, Karnataka: Commissioned in 2001, the plant is India’s first barge mounted combined cycle power plant. The 220 MW plant achieves maximum thermal efficiency with virtually no sludge. Work is currently on in full-swing to relocate the plant from Mangalore to Kakinada where it will be operated on gas. The plant is currently being relocated to Kakinada where it will be run on gas. Vemagiri Power Generation Limited, Andhra Pradesh: The Group’s third power generation project with a capacity of 388.5 MW is located at Vemagiri in Andhra Pradesh. The plant uses natural gas as fuel and operates on a combined cycle technology. The capacity of the plant is being expanded to include an additional 750 MW. GMR (Badrinath) Hydro Power Generation Private Limited, Uttarakhand: This 140 MW Hydro Electric power

project is the Group’s maiden venture into Hydro Power generation and is expected to be operational by 20112012. Kamalanga Thermal Power Project, Orissa: The 1050 MW coal based thermal power plant, in Kamalanga, is expected to achieve commercial operation by 2010. Talong Hydro Power Project, Arunachal Pradesh: The 160 MW hydro power project is located in the East Kemeng district and is expected to be commissioned by end 2011. Thermal Power Project in Chhattisgarh: GMR Energy signed a Memorandum of Understanding (MoU) with the Government of Chhattisgarh for implementation, operation and maintenance of a 1000 MW Coal based, Thermal Power Plant in the state. Holi Bajoli Hydro Power Project, Himachal Pradesh: The 180 MW hydro power project is a ‘Run of the River’ project on River Ravi in the Chamba district of Himachal Pradesh. EMCO Energy Ltd., Maharashtra: The Group through its ownership of EMCO Energy Ltd. is developing a 600 MW coal

“The Group has established three operational power plants and is currently developing nine power projects. The Group has plans to enhance its installed power generation capacity from the current 808 MW to more than 6500 MW over the next 3-4 years.”

- B V N Rao, Chairman, GMR Energy

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In addition, it is also developing three other highway projects two toll and one annuity, together totaling approximately 310 kms. The Group’s projects in the Urban Infrastructure sector include SEZ development (in Tamil Nadu as well as Hyderabad) and the sites adjoining its Hyderabad and Delhi airports. Winning the concession to modernise and operate the Sabiha Gokcen Airport in Istanbul, Turkey led the Group’s foray into International. The SGIA airport was inaugurated on 31st October, 2009, a year ahead of schedule. This has been further strengthened with the 50% acquisition of InterGen NV, a global energy major with a combined capacity of 8086 MW. The acquisition gives the Group a presence across 5 nations and positions it as India’s largest private-sector energy

based power plant in Warora, Maharashtra. Upper Karnali Hydro Power Project, Nepal: The 300 MW hydro power project is being developed by GMR Group on a Build, Operate, Own and Transfer basis (BOOT) in Nepal. Upper Marsyangdi Hydro Power Project, Nepal: GMR has acquired 80% stake in Himtal Hydro Power Company Pvt. Ltd. who are developing the 250 MW Hydro power project on the Marsyangdi river in Nepal.

The Group “The Group’s strategy of being a power generation-focused, integrated player in the Energy space has resulted

in a diversified fuel as well as tariff-mix and its recent successful forays in the areas of power trading both within the country and outside it. The Group has a current capacity of 808 MW and has plans to increase it to more than 6500 MW over the next 3-4 years,” said Rao. With a portfolio comprising the Delhi and Hyderabad (together handling almost 1/3rd of India’s total air traffic) airports, the Group is the premier developer / operator of Airports in the country. The Group also has a portfolio of nine Highway projects to-date totaling approximately 730 kms, which provides a balanced mix of five toll-based and four

player. Further the Group has acquired Intergen’s 100% ownership stake in Island Power, a Singapore based private electric power utility. “The Group is driven by the vision – ‘to create an entrepreneurial organisation that makes a difference to society through creation of value.’ This inclusive growth paradigm has been applied across geographies using the Group’s corporate social responsibility arm the GMR Varalakshmi Foundation (GMRVF). The Foundation devotes its time, energy and resources in evolving innovative projects that span the areas of Education, Health, Hygiene and Sanitation, Empowerment and Livelihoods with Community-Welfare programmes,” said Rao.

annuity based projects.

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