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POWER SECTOR:
INDIAN AND INTERNATIONAL OVERVIEW
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Contents
Contents..................................................................................................................... 3
Indo-EU Cooperation:..........................................................................................29
Indo-German Cooperation..................................................................................30
Indo-Japan Energy Dialogue...............................................................................30
D: BILATERAL COOPERATION.................................................................................31
Cooperation with Neighbouring Countries:.........................................................31
LIST OF ON-GOING EXTERNALLY AIDED POWER PROJECTS...................................31
World Bank......................................................................................................... 31
ADB....................................................................................................................31
KfW (Germany)...................................................................................................32
JBIC (Japan).........................................................................................................32
Overseas Business Initiative by NTPC:...................................................................32
Sri Lanka :..........................................................................................................33
Nigeria :..............................................................................................................33
INTERNATIONAL COOPERATION AND DEVELOPMENT (IC & D) by Rural Electric
Cooperation (REC).................................................................................................34
Japan Bank for International Cooperation (JBIC)- 2nd Line of Credit...................34
Indo German Bilateral Cooperation (KfW) - 2nd Line of Credit...........................34
Asian Development Bank (ADB).........................................................................34
Clean Development Mechanism (CDM)..............................................................35
Japan Bank for International Cooperation (JBIC) assistance for Rural Electricity
Distribution Backbone Project:...........................................................................35
Indo German Bilateral Cooperation for HVDS project of APSPDCL......................35
REC- RUS Cooperation under Distribution Reforms, Upgrade and Management
(DRUM) Project...................................................................................................36
POWER SECTOR IMPACTS ON THE ENVIRONMENT....................................................36
LOCAL IMPACTS:....................................................................................................37
REGIONAL IMPACTS:..............................................................................................37
GLOBAL IMPACTS...................................................................................................37
NATIONAL ENVIRONMENTAL LEGISLATION AFFECTING THE ELECTRICITY SECTOR...37
COMPARITIVE STUDY OF SOME OF THE MAJOR PLAYER IN INDIAN POWER SECTOR
.............................................................................................................................. 38
NTPC Ltd............................................................................................................. 38
RELIANCE INFRASTRUCTURE LTD.......................................................................38
TATA POWER COMPANY LTD..............................................................................38
POWER GRID CORPORATION OF INDIA LTD........................................................39
Existing generation suffers from several recurrent problems. The efficiency and the
availability of the coal power plants are low by international standards. A majority of the plants
use low-heat-content and high-ash unwashed coal. This leads to a high number of airborne
pollutants per unit of power produced. Moreover, past investments have skewed generation
toward coal-fired power plants at the expense of peak-load capacity. In the context of fast-
growing demand, large T&D losses and poor pooling of loads at the national level exacerbate the
lack of generating capacity.
India is one of the main manufacturers and users of energy. Globally, India is presently
positioned as the 11th largest manufacturers of energy. It is also the worlds’ 6th largest energy
users. In spite of its extensive yearly energy output, Indian power sector is a regular importer of
energy because of huge disparity.
Global and Indian economy have decelerated, but power is one of the few commodities in
short supply in India. So, despite the sluggishness in production and demand for manufactured
products, India remains power hungry, both in terms of normal and peak power demand. Power
is derived from various sources in India. These include thermal power, hydropower or
hydroelectricity, solar power, biogas energy, wind power etc. The distribution of the power
generated is undertaken by Rural Electrification Corporation for electricity power supply.
GLOBAL OVERVIEW
The energy required to support our economies and lifestyles provides tremendous
convenience and benefits. Energy consumption is reportedly higher in countries where less than
5 % of the population lives below the poverty line than it is in countries where most people live
in poverty -- four times higher. For example, Americans make up less than 5 % of the world’s
population yet consume 26 % of the world’s energy. World electricity generation rose at an
average annual rate of 3.7% from 1971 to 2004, greater than the 2.1% growth in total primary
energy supply. This increase was largely due to more electrical appliances, development of
electrical heating in several developed countries and rural electrification programmes in
developing countries.
De-regulation in areas of the global energy markets has led to fierce competition. Now
more than ever electricity has to be produced at a lower cost with many countries imposing ever
tightening environmental legislation to reduce the impact power generation has on the
environment. The enormous challenges are recognised in providing electricity as efficiently as
possible and strive to develop technology to meet your needs. Collectively, developing countries
use 30% of the world's energy, but with projected population and economic growth in those
markets, energy demands are expected to rise 95 %. Overall global consumption is expected to
rise 50 % from 2005 to 2030.
World energy consumption is projected to expand by 50% from 2005 to 2030 in the
IEO2008 reference case projection. Although high prices for oil and natural gas, which are
expected to continue throughout the period, are likely to slow the growth of energy demand in
the long term, world energy consumption is projected to continue increasing strongly as a result
of robust economic growth and expanding populations in the world’s developing countries.
Energy demand in the OECD economies is expected to grow slowly over the projection period,
at an average annual rate of 0.7%, whereas energy consumption in the emerging economies of
non-OECD countries is expected to expand by an average of 2.5 % per year.
Oil for power generation has been displaced in particular by dramatic growth in nuclear
electricity generation, which rose from 2.1% in 1971 to 15.7% in 2004. The share of coal
remained stable, at 40% while that of natural gas increased from 13.3% to 19.6%. The share of
hydro-electricity decreased from 23.0% to 16.1%. Due to large programmes to develop wind and
solar energy in several OECD countries, the share of new and renewable energies, such as solar,
wind, geothermal, biomass and waste increased. However, these energy forms remain limited: in
2004, they accounted for only 2.1% of total electricity production. The share of electricity
production from fossil fuels has gradually fallen, from just under 75% in 1971 to 66% in 2004.
This decrease was due to a progressive move away from oil, which fell from 20.9% to 6.7%.
As per the recent survery, the global electrical & electronics market is worth $1,038.8
billion, which is forecasted to grow to $ 1,216.8 billion at the end of the year 2008. If electrical
& electronics production statistics are considered, the industry accounted for $1,025.8 billion in
2006, which is forcasted to reach $1,051.5 billion in future.
The per capita consumption is seen to be far behind from the world average and very less when
compared to other countries. So there is a need to improve it.
Though India has achieved many milestones in generation still the there is a wide gap between
demand and supply of power. This is the most important issue to be concerned.
Fig.2: Comparative
Per Capita
Consumption Of
Electricity (Kwh)
Legal provisions to support and regulate the sector were put in place through the Indian
Electricity Act, 1910. Shortly after independence, a second Act - The Electricity (Supply) Act,
1948 was formulated, paving the way for establishing Electricity Boards in the states of the
Union.
In 1960s and 70s, enormous impetus was given for the expansion of distribution of
electricity in rural areas. It was thought by policy makers that as the private players were small
and did not have required resources for the massive expansion drive, the production of power
was reserved for the public sector in the Industrial Policy Resolution of 1956. Since then, almost
all new investment in power generation, transmission and distribution has been made in the
public sector. Most of the private players were bought out by state electricity boards.
From the installed capacity of only 1,362mw in 1947, has increased to 97000 MW as on
March 2000 which has since crossed 100,000 MW mark India has become sixth largest
producer and consumer of electricity in the world equaling the capacities of UK and France
combined. The number of consumers connected to the Indian power grid exceeds is 75 million.
India's power system today with its extensive regional grids maturing in to an integrated national
grid, has millions of kilometers of T & D lines criss-crossing diverse topography of the country.
However, the achievements of India's power sector growth looks phony on the face of
huge gaps in supply and demand on one side and antediluvian generation and distribution system
on the verge of collapse having plagued by inefficiencies, mismanagement, political interference
and corruption for decades, on the other. Indian power sector is at the cross road today. A
paradigm shift is in escapable- for better or may be for worse.
GENERATION
India has installed power generation capacity of 1,41,079.84 MW as on January 31, 2008, which
is about 100 times the installed capacity of 1362 MW in the year 1947. Power generation has
showcased a robust growth rate which is steadily improving year after year.
There has been significant improvement in the growth in actual generation over the last few
years. As compared to annual growth rate of about 3.1% at the end of 9th Plan and initial years
of 10th Plan, the growth in generation during 2006-07 and 2007-08 was of the order of 7.3% and
6.33% respectively. The electricity generation target for the year 2008-09 has been fixed at
744.344 BU comprising of 631.270 BU thermal; 118.450 BU hydro; 19.000 BU nuclear; and
5.624 BU import from Bhutan.
STRATEGIES
The various strategies followed to achieve the goal in power sector are,
Power Generation Strategy with focus on low cost generation, optimization of capacity
utilization, controlling the input cost, optimization of fuel mix, Technology up gradation and
utilization of Nonconventional energy sources
Transmission Strategy with focus on development of National Grid including Interstate
connections, Technology up gradation & optimization of transmission cost.
1 Northern Region
J&K - 300 687 - 1260
HP - 572 192 - -
2 Western Region
MP - 5791 - - 945
3 Southern Region
AP - 2762 - - 3150
4 Eastern Region
Bihar - 1057 82 - 1860
5 N.E.Region
Maghalaya - - - 67 -
Mizoram - - - 178 -
Tripura - - - 147 5
According to this table about 2.5% of Indian villages still remain unelectrified. In addition to
state boards Power Grid Corporation of India Limited has a major role in transmission
Distribution strategy to achieve Distribution Reforms with focus on System up gradation, loss
reduction, theft control, consumer service orientation, quality power supply commercialization,
Decentralized distributed generation and supply for rural areas.
Regulation Strategy aimed at protecting Consumer interests and making the sector
commercially viable.
Financing Strategy is to generate resources for required growth of the power sector.
Conservation Strategy to optimize the utilization of electricity with focus on Demand Side
management, Load management and Technology up gradation to provide energy efficient
equipment gadgets.
Communication Strategy for political consensus with media support to enhance the general
public awareness.
To achieve the above objectives National Electric Policy has been designed. To fulfill the
objectives of the NEP, a capacity addition of 78,577 MW has been proposed for the 11th plan.
This capacity addition is expected to provide a growth of 9.5 % to the power sector.
The Tenth Plan for fiscal years 2002 to 2007 targeted a capacity addition of 41,110 MW,
which was subsequently revised to 30,641 MW; however at the end of the Tenth Plan period,
only 21,180 MW of capacity was added. This shows that India is not upto the mark in achieving
the targets of generation. Our planning is perfect but our path to achieve the target is not perfect.
INVESTMENTS IN GENERATION
The total fund requirement for generation projects, during the Eleventh Plan period is
estimated at Rs. 4,108,960 million, with Rs. 2,020,670 million being required for the central
sector, Rs. 1,237,920 million being required for the state sector and Rs. 850,370 million being
required for the private sector. The total fund requirement includes the fund requirement
estimated at Rs. 1,891,950 million for start-up generation projects benefiting in the Twelfth Plan.
The exploitable energy resources in our country are unevenly distributed, like Coal resources are
abundant in Bihar/Jharkhand, Orissa, West Bengal and Hydro Resources are mainly concentrated
in Northern and North-Eastern Regions. As a result, some regions do not have adequate natural
resources for setting power plants to meet their future requirements whereas others have
abundant natural resources. Demand for power continues to grow unabated. This calls for
optimal utilization of generating resources for sustainable development. Thus, formation of
National Power Grid is an effective tool to achieve this as various countries have adopted the
model of interconnecting power grid not only at national level but also at international level.
Further, acquiring Right of Way (ROW) for constructing transmission lines is getting
increasingly difficult, especially in eco-sensitive areas like North-Eastern Region, Chicken neck
area, hilly areas in Jammu & Kashmir and Himachal Pradesh. At the same time, these areas are
also endowed with major hydro potential of the country. This necessitates creation of
“Transmission Super Highways”, so that in future, constraints in ROW do not cause bottleneck
in harnessing generating resources. Inter-connection of these highways from different part of the
country would ultimately lead to formation of a high capacity “National Power Grid”.
RECENT DEVELOPMENT
The Central Electricity Regulatory Committee (CERC) has issued a new notification that deals
with the tariff computation for the years 2009-10 to 2013-14
NORMS RATIONALISED
The finance minister Mr. P Chidambaram urged in powering the country's power sector
while reading out its second union budget in the parliament. The 'populist' union budget evoked
somehow positive response from both consumer and industrial point of view. The power industry
in the India has to witness the peak power shortages, where demand of the electricity is far more
exceeding than the supply. The difference between the two is estimated to be nearly 7% and 12%
in terms of total and peak requirements. For bridging the gap between demand and supply, the
government is envisaged in setting up of around 78,000 MW of power generating capacity
during the 11th five year plan, which covers the time period of 2007 to 2012.
The finance minister announced the total allocation of Rs. 5500 Crore for the Rajiv
Gandhi Grameen Vidyutikaran Yojana, which will be continued in the eleventh five year plan
also with a capital subsidy of Rs. 28,000 Crore. The budget 2008-09 is proposed to spend Rs.
5500 Crore in lightning up 5000 villages across the country. The scheme aims in providing free
electricity benefits to those villagers which are below the poverty line. The new fund outlay will
clearly help in the setting and development of power infrastructure in villages.
India is one of the largest consuming countries of coal. For bringing uniformity in the
process of coal production and pricing, coal distribution policy has been announced. Coal
regulator has to be appointed. The proposal of a coal regulator shall benefit the generating
companies, which are badly hit by rising fuel prices.
The finance minister has announced the withdrawal of exemption from 4% additional
duty of customs levied under section 3(5) of customs act, 1975 on transmission, power
generation projects, sub transmission, distribution projects and specified goods for high voltage
transmission projects. Rs. 8000 Crore has been set aside in 2008-09 for accelerated power
development and reforms project. The custom duty on project imports has been reduced from
7.5% to 5%. At Tilaiya, fourth UMPP (Ultra Mega Power Projects) has to be awarded shortly.
Besides this Chhattisgarh, Tamil Nadu, Maharashtra & Karnataka are coming up with five more
UMPPs with the available govt. support. Power generation companies like Tata Power and
NTPC are more likely to be befitted with the allocation of UMPPs. 4% countervailing duty on
imports is levied on power plants less than 1000 MW. The finance minister has decided to set up
a 'National Transmission and Distribution Fund' for proper transmission and distribution reform
and for addressing the higher losses in the power sector.
Subsequent to the Indo-US nuclear deal and India getting clearance from the Nuclear Suppliers
Group (NSG), nuclear power generation is likely to provide an opportunity of US$ 10 billion in
the next five years, according to a JP Morgan estimate. India will now also be partnering several
countries for nuclear fuel technology projects.
3. Myanmar,
4. Tajikistan, and
5. Uzbekistan
The details of cooperation with neighbouring countries are described below:
NEPAL
India has been assisting Nepal in the development of its hydro power potential and four
HE schemes viz. Pokhra (1 MW), Trisuli (21 MW) Western Gandak (15 MW) and Devighat
(14.1 MW) have been implemented in the past with financial and technical assistance from Govt.
of India. Three major multipurpose projects in Nepal viz. Pancheshwar, Saptakosi and Karnali
are presently under discussion at various levels as mutual benefits projects. A Joint Committee
on Water Resources (JCWR) headed by Water Resources Secretaries of India and Nepal has
been constituted to act as an umbrella Committee to ensure implementation of existing
agreements, understanding and also to oversee work of all technical and expert level Committees
related with Water Resources. The Joint Ministerial Commission on Water Resources that is
headed by the Minister of Water Resources of the two countries addresses bilateral co-operation
between the two countries on Water Resources. In the 3rd meeting of the JCWR it was agreed to
constitute Joint Standing Technical Committee (JSTC) to coordinate all existing committees and
sub- committees. During 3rd Meeting of JCWR held on 29.9.2008, Pancheshwar was identified
as a Priority Project and both sides agreed to set up Pancheshwar Development Authority (PDA)
for development, execution and operation of Pancheshwar Multipurpose Project. The Term of
Reference of the PDA is being finalized. Investigations have been carried out in respect of
Pancheshwar Multi-purpose Project (5600 MW) by the two countries in their respective
territories. Draft DPR has been prepared by Indian side which is to be mutually agreed by the
two countries. India has offered financial and technical assistance for investigation and
preparation of DPR of Saptakosi High Dam Multipurpose project and Sun Kosi Storage cum
Diversion Scheme. A Joint Project Office has been established on 17.08.2004 in Biratnagar,
Nepal for taking up field investigations and studies for preparation of Joint DPR. In addition,
India has offered assistance for carrying out field investigations and studies for preparation of
DPR for Naumure Multi-purpose Project and a team of officers from MOWR/ CEA/ CWC &
U.P. Irrigation Deptt. visited Nepal in this regard. Joint Technical Expert Groups have been
constituted for the above projects for guidance for carrying out investigations and preparation of
Detailed Project Reports (DPRs). Government of Nepal has through a process of competitive
bidding awarded Arun-III Hydropower Project (400 MW) to Sutlej Jal Vidyut Nigam Ltd.
(SJVNL) on build-ownoperate- transfer basis for a period of 30 years and a Memorandum of
Understanding (MoU), in this regard, have been signed between Government of Nepal and
SJVNL on 2.3.2008. Project office has since been opened by SJVNL at Kathmandu and a G&D
site has also been established w.e.f Nov., 2008. Government of Nepal has also awarded Upper
Karnali Hydropower Project to a consortium consisting of GMR Group companies on build-
own-operate-transfer basis and a Memorandum of Understanding (MoU) has been signed in this
regard in Kathmandu on January 24, 2008.
MYANMAR
As per the MoU signed on 16.9.2008 between Department of Hydropower Implementation
(DHPI), Govt. of Union of Myanmar (GoUM) & NHPC Limited, NHPC carried out the study
and appraisal of the Detailed Feasibility Reports of 1200 MW Tamanthi HE Project (report
prepared by M/s Colenco Power Engineering Ltd; Switzerland) & 642 MW
Shwezaye HE Project (report prepared by M/s Kansai Electric Co. Japan) vis-a-vis master plan
of Chindwin River Basin. Accordingly, NHPC has submitted ‘Project Review Reports’
suggesting need for carrying out additional studies/ investigations for preparation of DPRs for
these projects to MEA/MoP and the GoUM on 19.12.2008.
BHUTAN
In Bhutan, Chukha HE Project (336 MW) implemented with Indian Financial and
technical assistance and operating in an excellent manner is a shining example of cooperation
between the two countries for mutual benefits. Kurichhu HE Project (60 MW) in Eastern Bhutan
has also been implemented with Indian financial and technical assistance. Another project viz.
Tala HE Project (1020 MW) has also been commissioned in 2006-07 by Tala Hydro-Electric
Project Authority (THPA) comprising of Indian and Bhutanese Officers and Engineers. Design
& Engineering consultancy for the project in respect of electro-mechanical and civil works had
been rendered by Central Electricity Authority (CEA), Central Water Commission (CWC) and
Water & Power Consultancy Services (WAPCOS). The project had been funded by India
through grant and loan. PTC has been designated as nodal agency for transfer of Power from
Tala Project to India. Surplus power from these projects is being imported by India. An
agreement has been signed between GoI and RGoB in July’07 for execution of the
Punatsangchhu-I (1200 MW) project with Indian financial and technical assistance. The project
is presently under execution. An umbrella agreement for long-term cooperation for developing
hydro electric projects and associated transmission system was signed. The agreement envisaged
the development and import by India of not less than 5000 MW by 2020. A protocol to 2006
Agreement has been signed in 2009 which envisages import of 10000 MW of power from
Bhutan by the year 2020. Accordingly, DPRs of 9 projects (10426 MW) in Bhutan are under
formulation by CPSUs.
TAJIKISTAN
NHPC has undertaken the work of Renovation, modernization and Uprating of Verzob
Hydro Power Plant– I (2x3.67 MW) in Tajikistan. In this regard, a tripartite agreement has been
signed between Ministry of External Affairs (MEA), NHPC Ltd. and Bharat Heavy Electrical
Ltd (BHEL) on 12.08.2008 in MEA. The total cost of the assignment is Rs. 73.20 Crore, wherein
NHPC has to execute the Civil & HM works for an amount of Rs. 23.95 Crore.
MYANMAR
India had extended assistance for Design & Engg. Of Sedawyagi HE Project (25 MW). In
addition, Tamanthi HE Project (1200 MW) has been identified as a mutual benefit project. Three
nos. G&D sites have been established by India on Chindwin River. In pursuance to an agreement
signed on 13.04.06 between Ministry of External Affairs (MEA) and NHPC Ltd., NHPC has
prepared and submitted Pre- Feasibility Report (PFR) of the Tamanthi HE Project (1200 MW)
has been prepared by NHPC and submitted in April, 2005. DPR for the project is being got
prepared by Govt. of Myanmar through foreign consultants and is scheduled to be ready by Jan.
2008 after which decision regarding India’s involvement in the project relating to the level of
investment, participation in construction and +purpose of power etc. would be taken.
B: MULTILATERAL COOPERATION
Following are the multilateral cooperation done with other nations:
1. Carbon Sequestration Leadership Forum (CSLF)
2. India-Brazil South Africa Dialogue (IBSA)
3. Asia Pacific Partnership on Clean Development and Climate (APP)
represented on the Policy Group of CSLF by Secretary (power) and Secretary, Department of
Science and Technology. Ministry of Power has been coordinating all the activities relating to
CSLF in India. A meeting of the Task Force of Policy Group of CSLF Group on Financial Issues
was held on 2nd and 3rd December, 2008 at New Delhi. The Task Force deliberated on the
Issues of Innovative financing mechanism for R&D activities in CCS in India. India has taken a
stand in the CSLF that developed countries need to finance the CSLF related R&D activities in
developing countries
FutureGen Project
The US Government had invited Government of India to join in the collaborative funding
for the FutureGen Project, a US $ 950 million public-private initiative to design, build and
operate the first coal-fired emission-free power plant of 275 MW. US$ 250 million is expected
from private industry coalition and the balance US $ 700 million is to be provided by the US
Federal Government in partnership with foreign governments. India has agreed to contribute US
$ 10 million over a 5 year period. A Framework Protocol was signed between US and India on
3.4.2006 on cooperation on the FutureGen Project in New Delhi. The Framework Protocol
recognizes that the objective of the FutureGen Project is to demonstrate a technological solution
applicable to a variety of coal types. India has become a full charter member in the FutureGen
Government Steering Committee (GSC) which is the mechanism to provide guidance, input and
recommendations on the direction of the FutureGen Project. India will also have opportunity of
joining the Technical Sub Committees of the Steering Committee in focus areas like plant
design, sequestration sub-system, technology inclusion, test planning, risk analysis and
assessment. First meeting of the GSC was held in USA in September 2006. Ministry of Power
represented India in this meeting. The US Department of Energy has entered into a cooperative
agreement with a Consortium (FutureGen Alliance) led by the coal fired electric power industry
and the coal production industry to execute this project. This Consortium is responsible for the
design, construction and operation of the FutureGen plant and also for monitoring and
verification of sequestrated carbon dioxide. The Consortium is selecting a site for the project
using the criteria developed jointly with the US Department of Energy. It will follow a
competitive selection process for selecting equipment supplier and service vendors.
C: REGIONAL COOPERATION
SAARC Secretariat and finalized the same. A meeting to evolve the common template on
commercial and technical aspects of electricity grid interconnections among the SAARC
Member Countries was held on 4/12/ 2008 in New Delhi. A detailed questionnaire was circulated
in the Member countries seeking further information to finalize the common template. The
Governing Body Meeting of SAARC Energy Centre was held on 13-14 November, 2008 at
Islamabad. The meeting was attended by the representative of Ministry of Power. As decided in
the meeting a Workshop on Energy Efficiency shall be organized by India in 2009. 3rd Meeting
of SAARC Energy Ministers was held on 28- 29 January, 2009 in Colombo. The Indian
delegation was led by Hon’ble Minister of Power. The meeting reviewed the status of
implementation of decisions of second meeting of the SAARC Energy Ministers.
Indo-US Cooperation:
India and US have agreed to begin an Indo-US Energy Dialogue. The Energy Dialogue is
chaired by Deputy Chairman, Planning Commission and US Energy Secretary. Following 5
working groups under the Energy Dialogue have been constituted :
(i) Oil and Gas
(ii) Power and Energy Efficiency
(iii) Coal
Indo-EU Cooperation:
At the 5th India-EU Summit held in November, 04 India and EU agreed to set up a Joint
Energy Panel with a view to coordinate their actions in the field of energy and all related fuel
chains. The Panel is co-chaired by the Foreign Secretary from India side. The energy panel met
for the first time in Brussels. The panel had decided to set up 3 Working Groups.
(i) Clean and Clean Coal conversion Technologies
(ii) Energy efficiency and renewable energies
(iii) Fusion energy including India’s participation in ITER
The last meeting of working Group on Energy Efficiency and Renewable Energy was
held in January, 2007 at Brussels. During the meeting participating experts made presentations
on energy efficiency of end use appliances, Co-generation and Bio-fuels. The following areas of
mutual interest were identified for further enhanced work: Energy efficiency, notably labeling;
co-generation also in view of district cooling; bio-fuels first generation. Nodal persons have been
identified for this purpose. Enhanced EU-India cooperation including industry cooperation was
envisaged by both the Chairs. At the request of Ministry of Coal, Ministry of Power is dealing
with Working Group on Clean Coal Technology. The first meeting of Indo-EU Working Group
on Clean Technology was held in January, 2008 at New Delhi. The Working Group agreed to
take up further cooperation activities in following two areas:
i) A joint study on feasibility of introducing advanced supercritical technology in India.
ii) Participation by India in ZEP demonstration plant.
The 2nd Meeting of Indo-EU Working Group on Clean Coal Technology (CCT) was held on
20/6/2008 at Brussels. An Indian delegation led by Member Planning, CEA participated in the
meeting from the Indian side. The 3rd meeting of Indo-EU Working Group was held on
26/11/2008 at New Delhi. The meeting was followed by a Workshop on CCT on 27-28
November, 2008. Delegation from EU attendedthe meeting along with representatives of
Government of India, academic institutions, industries.
Indo-German Cooperation
India and Germany launched energy dialogue in April, 2006. The year has seen an
increasing interest on both sides to enhance cooperation. Two batches of engineers from CEA/
State utilities have been deputed to Germany for training in power plant efficiency improvement.
The second meeting of the Indo-German Energy Forum was held in New Delhi in December,
2007. A number of issues for bilateral cooperation were identified and three ad-hoc sub groups,
namely on, power plant efficiency, CDM projects in Energy and Renewables have been set up.
D: BILATERAL COOPERATION
World Bank
• Power System Development Project – III (PSDP-III) /PGCIL (USD 400 million)
• 4th PSDP / PGCIL (USD 1000 million)
• Rampur HEP / SJVNL (USD 400 million)
ADB
• Assam Power Sector Development Project / ASEB (USD 100 million)
• Powergrid Transmission (Sector) Project – III (USD 400 million)
• National Powergrid Development Investment Programme – IV (USD 600 million)
• M.P. Power Sector Investment Programme / MPPTCL and E.W.C. Discoms (USD 600 million)
• Uttarakhand Power Investment Programme / UVNL and PTCL (USD 300 million)
• Himachal Pradesh Clean Energy Development Programme / HPPCL (USD 800 million)
KfW (Germany)
• 2*800 MW Krishnapatnam TPP / APPDCL (Euro 281 million)
• PFC Energy Investment Programme / PFC / UJVNL (Euro 103.59 million)
• High Voltage Distribution System (HVDS) in A.P. / REC (Euro 70 million)
• High Voltage Distribution System (HVDS) in Haryana/ REC (Euro 70 million)
• Pare HEP / NEEPCO (Euro 80 million)
JBIC (Japan)
• North Karanpura TPP (IDP-160)/NTPC
• Rural Electrification Programme (IDP-169)/REC
• Renovation & Modernisation of Umiam-II HEP(IDP-156)/MeSEB
• Purulia Pump Storage Project (IDP- 98, 152, 167)/ WBSEB
• West Bengal Power Transmission Project (IDP-117,143)/WBSEB
• Bakreshwar TPP (IDP-147)/WBPDCL
General Trading and Contracting Co. (AIGT), Kuwait for providing experts supervision
services for operation of 800 MW Az Zour open cycle gas based power plant in Kuwait. The
representative office of NTPC in Dubai has been functioning since November 2006 for
marketing of its services in Middle East region.
Sri Lanka :
Memorandum of Agreement between NTPC, Govt. of Sri Lanka (GOSL) and Ceylon
Electricity Board (CEB) was signed in December’06 for setting up a 2x250 MW coal based
power plant in Trincomalee region of Sri Lanka through a 50:50 Joint Venture Company (JVC)
to be established between CEB and NTPC. Muttur-East (Site no. 5) was identified as a suitable
site for setting up the power project subject to techno-economic feasibility. NTPC has been
appointed as the consultant for preparation of Feasibility Report for the proposed power plant.
For the purpose of preparation of FR, activities for award of Site specific studies as well as EIA
studies are under progress. The Joint Venture Agreement (JVA) and the Definitive agreements
are under finalization between NTPC & CEB.
Nigeria :
MOU for Energy Cooperation was signed between NTPC and Ministry of Energy,
Federal Govt. of Nigeria (FGN) in May, 2007. As per the MOU, NTPC shall setup one 500 MW
coal based and one 700 MW gas based power projects in Nigeria in lieu of long term supply of 3
MTPA of LNG to NTPC for its use in NTPC’s Indian Power Stations. Pre-feasibility Report
(Pre-FR) for setting up the proposed 500 MW coal based and 700 MW gas based power plants in
Nigeria was submitted to Director (Power), Ministry of Energy (Power), Federal Government of
Nigeria (FGN) on 11.06.2008. NTPC is following up with FGN and is in constant touch with
Indian high commission at Nigeria on the matter. NTPC has also started benchmarking with
leading international power utilities in association with North American Electricity Reliability
Council (NERC), GADS, USA. Membership of NERC, GADS, USA has been renewed to
facilitate International benchmarking. Data of NTPC stations on parameters like availability
factor, PLF, planned & forced outage etc. was compared with NERC-GADS international
database. The performance of NTPC stations is at par with and even better than the international
Japan Bank for International Cooperation (JBIC) assistance for Rural Electricity
Distribution Backbone Project:
JBIC has sanctioned a loan assistance of 21 billion yen (Rs. 835 crore) under the ODA loan
package for the Rural Electricity Distribution Backbone Project (REDB) of REC envisaging
erection of 785 no. of new 33/11 KV sub stations and 510 no. of augmentation of sub stations in
the States of AP, MP & Maharashtra. This loan assistance shall be available from December,
2006 onwards.
The objectives of the project are to improve the sub transmission system by relieving the existing
overloaded system and reducing the T&D losses and to expand access to electricity for un
electrified households and other rural loads for different economic activities, by constructing and
augmenting the sub stations and associated distribution lines, thereby improving living standard
of local residents and promoting economic and social development in the concerned areas.
Depending upon the success of the programme, Kfw has also agreed to consider further
allocation of 50 million Euro for the HVDS Project of Discoms of Uttar Pradesh, and
negotiations between India & Germany are expected to conclude by March, 2007.
The project aims at reduction in distribution losses, failure rate of distribution transformer and
avoidance of theft in agriculture sector and will ultimately help in improving the financial
sustainability of the respective Discoms.
LOCAL IMPACTS:
Large power sources can affect their surroundings through impacts such as air pollution,
submergence of land and waste accumulation, excessive resource use and disruption of human
activity. The impacts of coal-based thermal plants are particularly important in a study of India,
as these plants currently provide the largest generating capacity in India, and about 80% of the
actual generation. Electricity generation consumed 67% of India’s coal use, in 2002; further,
India’s coal consumption is projected to grow 2.2% annually between 2002 and 2025 (EIA,
2005).
REGIONAL IMPACTS:
Regional pollution issues, for example the issue of acid rain and sulphur deposition, have
received attention in Northeast Asia. While the magnitude of coal-fired power plants'
contribution may be disputed, particularly during winter and spring, when dominant high-
pressure systems sweep accumulated pollutants off the landmass toward the eastern ocean mass.
GLOBAL IMPACTS
The Indian power sectors contribute about 52% of the carbon emissions in the country. Due
to the magnitude of its electricity generation, China’s total carbon emissions are over three times
those from India and even on a per capita basis are over 2½ times.
The Water (Prevention and Control of Pollution) Act, 1974, amended 1988 42nd Amendment,
1976, to the Indian Constitution (1949)
To study and analyze the power sector better, the comparative and analytical study of the
Top 5 firms of power sector in India are done. The firms are chosen based on their sales
turnover. The below are the firms selected by us for the study.
NTPC Ltd.
NTPC Limited is the largest power generating and Navratna status company of India; it was
incorporated in the year 1975 as National Thermal Power Corporation Private Limited to
accelerate power development in the country. As a wholly owned company of the Government of
India, NTPC has emerged as a truly national power company, with power generating facilities in
all the major regions of the country. It has a Production Capacity of 29,394 MW
Conclusion:
Power is one of the prime movers of economic development. The basic responsibility of
power supply industry is to provide adequate electricity at economic cost, while ensuring
reliability and quality of supply. Significant impetus by successive Governments has resulted in
increase in capacity from 1,300 MW during independence to more than 100,000 MW today.
Along with the growth in installed generation capacity, there has also been a phenomenal
increase in the transmission and distribution capacity. However, despite the significant progress
in capacity addition, the demand for electricity continues to outstrip supply with the result that
energy and peaking shortages continue to plaque the economy. The per capita consumption is
among the lowest in the World at 408 kwh/year
The Government proposes to enhance public funding for the sector as well as encourage
the public sector undertakings to take up projects in joint ventures with private investors and
state governments in the 10th and 11th Plan period. There is also a focus on initiating suitable
policy measures to accelerate the pace of hydro power development as well as to make nuclear
power generation as competitive as power generation from other fuels. Significant reforms are
being undertaken in power sector management and financing at the state level. Indian power
sector has been witnessing a wide demand – supply gap. Although electricity generation has
increased substantially, it has not been able to meet the demand.
India possesses a vast opportunity to grow in the field of power generation, transmission,
and distribution. The target of over 150,000 MW of hydro power germination is yet to be
achieved. By the year 2012, India requires an additional 100,000 MW of generation capacity. A
huge capital investment is required to meet this target. This has welcomed numerous power
generation, transmission, and distribution companies across the globe to establish their
operations in the country under the famous PPP (public-private partnership) programmes. The
power sector is still experiencing a large demand-supply gap. This has called for an effective
consideration of some of strategic initiatives. There are strong opportunities in transmission
network ventures - additional 60,000 circuit kilometers of transmission network is expected by
2012 with a total investment opportunity of about US$ 200 billion.
"Of course, the development of the power sector will not be possible without private sector
participation,"