National Electricity Policy

The National Electricity Policy was notified on February 12, 2005.  It aims at accelerated development of the power sector, providing supply of electricity to all areas with reliability and quality, protecting interests of consumers and other stakeholders and at financial turnaround and commercial viability of the sector.

 

The Electricity Act, 2003

National Tariff Policy under the provisions of Electricity Act, 2003 notified on January 6, 2006.  Joint Electricity Regulatory Commission (JERC) has been notified for Union Territories (except for Delhi) on May 2, 2005. The Central Government made the Appellate Tribunal for Electricity operational with effect from July 21, 2005. The Tribunal has started hearing appeals against orders of the Regulatory Commissions/Adjudicating Officers.

 

            In pursuance of provisions of the National Common Minimum Programme (NCMP), the Electricity (Amendment) Bill, 2005 has been introduced in the Lok Sabha on December 23, 2005.  The provisions of the Electricity Act, 2003, which are proposed to be amended are:

 

Ø                   To delete the provisions for ‘elimination’ of cross subsidies since elimination of cross subsidies is not intended in the near future. The provision for reduction of cross subsidies would continue.

Ø                   To clarify that police can investigate the cognizable offences under the Act and that no prosecution shall be instituted for any offence under the Act except at the instance of the appropriate Government or appropriate Commission or authorised persons.

Ø                   To provide that both the State Government and the Central Government would jointly endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households.

 

Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

Rajiv Gandhi Grameen Vidyutikaran Yojana was launched in April 2005 towards realizing the goal of providing access to electricity to all households in five years, which, inter-alia, provides for 90 per cent capital subsidy from the Central Government for projects sanctioned under the scheme. During the first year, 9,819 villages have been electrified. Further, 350 villages of Karnataka have been covered for intensive electrification. Electrification of over 10,000 villages in a single financial year is a record.

 

Rural Electrification Policy

Draft Rural Electrification Policy prepared after detailed consultation with the States and other stakeholders was finalised in the Committee of Secretaries in March 2006.

 

Generation

 

Ø                   Generation during the year 2005-06 was 617.39 BU (99.3% of target)

Ø                   Growth rate of 5.1% was recorded over previous year generation of 587.3 BU

 

Sectoral Performance

 

Ø                   Total generating capacity installed in the country during the year increased from 1,18,419 MW to 1,24,310 MW. A capacity of 3,970.80 MW was added during the year.

Ø                   As on March 10, 2006, at present 88 generation projects totaling 41,559 MW with a total estimated cost of Rs.1,95,973 crore are under construction in the country.

Ø                   The Dabhol Power Project, which was shut down from June, 2001 following disputes, has been revived in 2005. The entire power plant is expected to be commissioned by November, 2006.

Ø                   Recognising the fact that economies of scale leading to cheaper power can be secured through development of large size power projects, Ministry of Power, CEA and Power Finance Corporation are working together for development of five Ultra Mega Power Projects under tariff based competitive bidding route. The Ultra Mega Power Projects, each with the capacity of 4000 MW, would also have scope for further expansion. The size of these projects being large, they will meet the power needs of a number of States through transmission of power on regional and national basis.

 

National Power Monitoring Centre

State-of-the-art National Power Monitoring Centre has been set up in Ministry of Power to facilitate availability of real time operational data of generation and transmission system, a single point of information source for all power related activities, quick and timely information exchange, improve coordination with all power utilities, comprehensive monitoring resulting in expeditious completion of projects and to facilitate immediate action for disaster management.

 

Transmission National Grid

Part of the National Grid, comprising HVDC bipole and HVDC back-to-back links as well as 400 KC EHVAC lines interconnecting different regions, has already been completed and inter-regional power transfer capacity of 400 kv EHVAC, 765 kV EHVAC lines and HVDC system are under various stages of implementation/planning, which shall enhance the inter-regional power transfer capacity of National Grid to about 37, 150 MW progressively by 2011-12. 

 

Under Accelerated Power Development & Reforms Programme (APDRP)

 

Ø                   An investment component of overall Rs. 6, 132 crore have been released for 583 projects costing Rs. 19, 180 crore. Cumulative Rs. 9, 518 crore utilized including the counterpart funds.

Ø                   Under incentive component, total of Rs. 1, 537 crore have been released to eight States – Andhra Pradesh, Gujarat, Haryana, Maharashtra, Rajasthan, West Bengal, Kerala and Punjab.

 

Energy Conservation

At present, certified Energy Managers and 820 certified Energy Auditors are in place.  Draft Energy Performance Codes have been prepared for seven segments.

 

Financial Performance

 

Ø                   The budget utilisation has been increased during the previous year from Rs. 10, 741.30 crore in 2003-04, to Rs. 12, 947.57 crore in 2004-05, and Rs. 16, 356 crore in 2005-06.

Ø                   Net profit has increased from Rs. 7, 035 crore to Rs. 10, 638.10 crore during 2005-06.

 

Undertakings

Power Finance Corporation till March 31, 2006, the Corporation has sanctioned an amount of Rs. 94, 069 crore and disbursed Rs. 61, 795 crore for various schemes.  Corporation figures among the ‘Top 10’ PSUs of the country and received ‘MoU Award of Excellence’ for the year 2003-04 from the Hon’ble Prime Minister on January 10, 2006.

            Over the last 37 years, Rural Electricity Corporation (REC) cumulatively sanctioned projects for Rs. 98, 543 crore and disbursed Rs. 52, 557 crore upto March 31, 2006, as financial assistance on relatively softer terms to the SEBs, Electricity Departments of State Government and other Power Utilities.

            National Thermal Power Corporation (NTPC) has added a capacity of 500 MW during the year.  National Hydro Electricity Power Corporation (NHPC) has recorded generation of Rs. 12, 567 MU upto the end of March 2006, against the target of 11, 286 MU.

            The 260.5 M high Tehri dam, one of the highest earth-and-rockfill dam in the Asian region has been completed.  A mammoth quantity of 27.82 M.Cum. of fill material has been placed to complete the Tehri Dam in December, 2005.

            A MoU has been signed between National Power Training Institute (NPTI) and Power Grid Corporation of India (PGCIL) on March 1, 2005, for establishing the Training Institute in the North Eastern Region at Guwahati on turnkey basis.  Civil works are in progress.

            The scheme for establishing of Hydro Power Training Institute at Nangal under NPTI was sanctioned on February 7, 2006 by the Ministry, and MoU was signed between NPTI and BBMB for execution of the project on turnkey basis on April 5, 2006, which are in progress.

 

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