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CHAPTER - 1 PERFORMANCE HIGHLIGHTS The Electricity Act, 2003 Section 3(i) of Electricity Act 2003 mandates the Central Government to prepare the National Electricity Policy Tariff Policy in consultation with State Governments and the Central Electricity Authority (CEA). The National Electricity Policy aims at accelerated development of the power sector, providing supply of electricity to all areas and protecting interests of consumers and other stakeholders keeping in view availability of energy re- sources technology available to exploit these. resources, economics of generation using different resources and energy security issues. Salient features of the Policy are as under : - • Access to Electricity : Available for all households in next five years. • Availability of Power : Demand to be fully met by 2012. Energy and peeking shortages to be overcome and 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 2012. • Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012. • Financial Turnaround and Commercial Viability of Electricity Sector. • Protection of consumers' interests. REFORM STATUS The Tariff Policy was amended on 31st March, 2008 to provide for: (i) A developer of a hydroelectric project, not being a State controlled/owned company to have the option of getting tariff determined by the Appropriate Commission on the basis of performance based cost of service regulations. (ii) One percent free power towards local area development fund (thus total free power 13%). (iii) Every project affected family to get 100 unit of electricity free of cost for a period of ten years. Amendment to the Resolution on establishment of Regional Power Committee The Central Government vide resolution dated 9th May, 2008 establishment of Regional Power Committee under the has issued second amendment to the Resolution on provisions of the Electricity Act, 2003. Hon’ble President Smt. Pratibha Devisingh Patil at the prize distribution for Meritorious Performance in Power Sector alongwith Sh. Sushilkumar Shinde, Minister of Power, Sh. Jairam Ramesh, Minister of State, Sh. V.S. Sampath, Secretary (Power) and Sh. Rakesh Nath, Chairperson CEA 1 Notificatioin of Salaries Allowances and other conditions designed capacity corresponding to prevailing reservoir of service of Chairperson and Members, Officers and level in case of storage power stations. Staff of Appellate Tribunal for Electricity (APTEL) Thermal projects : Commissioning of the plant can be The Government has notified the Appellate Tribunal for related to actual output in the form of generation that is Electricity (Salaries Allowance and other conditions of emerging from plant for auxiliary consumption and input to service of Chairperson and Members) (Amendment) Rules, the grid based on its designated fuel and completion of all 2008 on 29th September, 2008. plants and equipments require for fuel handling and safe The Government has also notified the Appellate Tribunal operation of the plant. for Electricity Salary, Allowances and other conditions of Monitoring : The Ministry of Power has adopted a robust service of the officers and employees (Second Amendment) monitoring system for the capacity addition programme so Rules, 2008 on 22nd July, 2008. as to see that the cleared projects are executed in time. CERC issued regulations on terms and condition of The monitoring mechanism comprises of 3 broad levels at tariff for generation and Transmission which monitoring of power projects are carried by the Ministry viz. by the Central Electricity Authority(CEA); by the Ministry CERC on 20.1.2009 has issued the Tariff Regulations for of Power; and through the Power Project Monitoring generation and transmission projects for the period 2009- Panel(PPMP). 14. These regulations have been finalized after detailed consultation with the stakeholders and would also be the ULTRA MEGA POWER PROJECTS(UMPP) guiding principles for the State Electricity Regulatory STATUS OF ULTRA MEGA POWER PROJECTS Commissions. The regulations aim at attracting much Mundra in Gujarat : The project was handed over to the desired investment in power infrastructure in the country Successful Bidder i.e., Tata Power Company Ltd., on while ensuring that the consumers get electricity at 23.04.2007 at the evaluated levelised tariff of Rs. 2.26367/ reasonable cost. kWh As per available information, two units of 800 MW each Staff Paper on measures for restraining the prices of are expected to be commissioned in the XI Plan. Orders for Electricity in short term sale / trading turbine and steam generator have been placed by the In view of the concerns being expressed regarding the developer. Piling work of all boilers, turbines & chimney has increase in prices of electricity being sold/traded in short- been completed and structural erection work for boilers is term, the staff of the Commission circulated a discussion in progress. paper titled "Measures for restiaining the prices of electricity Sasan in Madhya Pradesh : The project was handed over in short-term sale/trading". CERC has passed an order on to the Successful Bidder i.e., M/s Reliance Power Ltd., on 17.12.2008 in which no price cap has been envisaged. 07.08.2007 at the evaluated levelised tariff of Rs. 1.19616/ Capacity Addition kWh. Financial closure has been achieved and order for main plant equipment has been placed by developer. The all India installed power generation capacity as on 31.3.2009 was 147965 MW comprising of 93725 MW Krishnapatnam in Andhra Pradesh : The project was thermal, 36878 MW hydro, 4120 MW nuclear and 13242 handed over to Reliance Power Ltd., on 29.01.2008 at the MW R.E.S. levelised tariff of Rs. 2.33/kWh. The development work is being undertaken by the developer. Capacity addition programme and achievement during 2008-09 Tilaiya in Jharkhand : The financial bids of the project were opened on 28.01.2009. M/s. Reliance Power Ltd. was the The capacity addition target for the year 2008-09 was successful bidder with an evaluated levelised tariff of Rs. 11061.2 MW which has been revised to 7530 MW because 1.770 per kWh. Lol was handed over to the successful bidder of the revised definition of commissioning of power projects on 12.2.2009. and the achievement as on 31.3.2009 was 3454 MW. With respect to UMPP in Tamil Nadu, the site at Cheyyur is Revised definition of Commissioning finalised, along with captive port which is under finalisation. Earlier “rotation of the machine” in case of hydro projects and Consultants have been appointed by the SPV of PFC for “oil synchronization” in case of thermal projects were treated carrying out various studies. as commissioning for declaring capacity addition. However, As far as the other UMPPs to be located in the States of the definitions have since been changed as follows : Chhattisgarh, Karnataka, Maharashtra and Orissa are Hydro projects : Capacity addition in respect of hydro projects concerned, requisite inputs regarding land availability and would be the date when following conditions are met : water linkage are being examined in consultation with the (i) The trial run operation has started. concerned State Governments. The further progress of these (ii) The unit had achieved full rated capacity in case of four UMPPs is therefore dependent on early finalization of purely run of river station and run of river stations with the site and water availability. pondage. Some States have also requested for additional UMPPs; (iii) The unit has achieved full rated capacity or the for this, suitable sites are being identified. 2 Accelerated Power Development and Reforms (b) This subsidiary company will be gradually made Programme (APDRP) independent from the PGCIL at the appropriate time, Guidelines for the Re-structured Accelerated Power say after five years. Development and Reforms Programme (APDRP) during (c) Clear Rules and Guidelines shall be prepared XI Plan has been issued vide OM No. 14/04/2008-APDRP immediately for the consultative and decision making dated 22nd December 2008. process as being followed by TRAI. At National Level 98% feeders and 88% of the consumers RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA have been metered so far. 100% feeder metering have been (RGGVY) achieved in 23 states. A scheme “Rajiv Gandhi Grameen Vidyutikaran Yojana” for Grant of Navratna status to Power Grid Corporation of Rural Electricity Infrastructure and Household Electrification India Ltd. (PGCIL) was launched for the attainment of the National Common D/o Public Enterprises vide their O.M. No. 26(3)/2005-GM-GL- Minimum Programme of providing access to electricity to 92 dated 1st May, 2008 has conferred Navratna status to PGCIL. all Rural Households by 2009. Rural Electrification Corporation (REC) is the nodal agency for the scheme. On Creation of an Independent System Operator 3rd January, 2008, the Government has given the approval The arrangement of the operation of national and regional for continuation of RGGVY in XI Plan with a provision of Rs. load dispatch centres has been reviewed by the Government 28,000 crore. of India and it has been decided with the approval of the Website for RGGVY (both in Hindi & English) was launched Competent Authority to advise the Power Grid Corporation on 28th May, 2008 and is available at http://rggvy.gov.in. of India Ltd. (PGCIL) as under : - New Hydro Policy (a) To set up a wholly owned subsidiary company of Power Grid Corporation of India Limited (PGCIL) responsible New Hydro Policy has been notified on 31/03/2008. for independent system operation with separate Power Generation accounting and Board structure. Stake holders will be The electricity generation target for the year 2008-09 was appropriately represented on the Board of the subsidiary fixed as 774.344 Billion Units (BU) i.e. growth around 9.0 % company and eventually may have shareholding in the over generation target of 710 BU for the previous year ISO company.
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