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Data Collection Survey on Power Sector in India Final Report

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Data Collection Survey on Power Sector in India Final Report Data Collection Survey on Power Sector in India Final Report January 2017 Japan International Cooperation Agency (JICA) Electric Power Development Co., Ltd. ID JR 17-004 Data Collection Survey on Power Sector in India Final Report PART I PUMPED STORAGE PROJECTS TABLE OF CONTENTS CHAPTER 1 INTRODUCTION 1.1 INTRODUCTION ............................................................................................................ 1-1 1.1.1 Purpose of Study .................................................................................................. 1-1 1.1.2 Scope of Study ..................................................................................................... 1-2 1.2 STUDY SCHEDULE AND STUDY ITEMS ................................................................... 1-3 1.2.1 Study Schedule .................................................................................................... 1-3 1.2.2 Scope of Studies in Each Stage ........................................................................... 1-7 1.2.3 Study Details in Each Stage ................................................................................. 1-8 1.2.4 Study Details in Each Stage of Coal Thermal Power fired projects Study .......... 1-27 1.3 JICA SURVEY TEAM MEMBER AND WORK DESCRIPTION ................................. 1-29 1.4 RECORD ON DISPATCH OF STUDY TEAM ............................................................... 1-32 CHAPTER 2 CURRENT SITUATION AND FUTURE TREND IN POWER SECTOR IN INDIA 2.1 POLITICAL AND ECONOMIC SITUATION ................................................................ 2-1 2.1.1 Political and Economic Situation ......................................................................... 2-1 2.1.2 Energy Policy in India ......................................................................................... 2-9 2.1.3 Policy for External Finance ................................................................................. 2-14 2.1.4 Financial condition of State Power Utilities ........................................................ 2-18 2.2 ELECTRICITY INDUSTRY AND ELECTRICITY REGULATION IN INDIA ............ 2-20 2.2.1 Outline of electricity sector in India .................................................................... 2-20 2.2.2 Regulations of India’s Electricity Sector ............................................................. 2-40 2.2.3 Function of Electricity Regulatory Commission ................................................. 2-46 2.2.4 POWERS OF STATE GOVERNMENTS TO MAKE RULES ........................... 2-48 2.2.5 Electricity Policy: National Electricity Policy ..................................................... 2-48 2.2.6 Electricity Policy: Tariff Policy ........................................................................... 2-52 2.2.7 Electricity Policy: Land Acquisition .................................................................... 2-63 2.2.8 ELECTRICITY POLICY: SHORT-TERM POWER MARKET ......................... 2-66 2.3 CURRENT SITUATION AND CHALLENGES OF ELECTRICITY SECTOR IN INDIA ............................................................................................................................... 2-74 2.3.1 Electricity Deficit................................................................................................. 2-74 2.3.2 Key Issues and Government Response ................................................................ 2-76 2.3.3 Financial Liabilities of DISCOMs: UDAY .......................................................... 2-90 2.3.4 Integrated Power Development Scheme (IPDS) ................................................. 2-92 2.3.5 Rural Electrification: DDUGJY .......................................................................... 2-94 2.3.6 Global Warming Prevention Measures ................................................................ 2-94 Electric Power Development Co., Ltd. i Data Collection Survey on Power Sector in India Final Report 2.4 POLICY AND CURRENT SITUATION OF PSP ........................................................... 2-97 2.4.1 Renewable Energy Policy .................................................................................... 2-97 2.4.2 Challenge for Introduction of Large Scale Variable Energy ................................ 2-101 2.4.3 Necessity of Spinning Reserve and Electricity Storage ....................................... 2-105 2.4.4 PSP for Superior Spinning Reserve Capability and Electricity Storage .............. 2-105 2.4.5 Future Power System: Flexibility Requirement ................................................... 2-106 2.4.6 PSP relevant CERC regulation ............................................................................ 2-107 CHAPTER 3 ENVIRONMENTAL AND SOCIAL CONSIDERATIONS 3.1 LEGISTATIONS AND RELEVANT AUTHORITIES .................................................... 3-1 3.1.1 Environmental legislations .................................................................................. 3-1 3.1.2 Environmental procedures of PSP ....................................................................... 3-2 3.2 ENVIRONMENTAL CONDITION IN INDIA ............................................................... 3-9 3.2.1 Population ............................................................................................................ 3-9 3.2.2 Greenhouse gas emission ..................................................................................... 3-9 3.2.3 Land use ............................................................................................................... 3-9 3.2.4 Forest ................................................................................................................... 3-9 3.2.5 Protected Area ...................................................................................................... 3-9 3.2.6 Protected species .................................................................................................. 3-12 3.2.7 Tribes ................................................................................................................... 3-12 3.2.8 Security ................................................................................................................ 3-12 3.3 ENVIRONMENTAL CONDITIONS BY STATES ......................................................... 3-15 3.3.1 Maharashtra State (MS) ....................................................................................... 3-15 3.3.2 Odisha State (OD)................................................................................................ 3-23 3.3.3 Telangana State (TS) ............................................................................................ 3-32 3.3.4 Karnataka State (KN) .......................................................................................... 3-40 3.3.5 Kerala State (KR) ................................................................................................ 3-52 3.3.6 Tamil Nadu State (TN) ........................................................................................ 3-60 3.3.7 West Bengal State (WB) ...................................................................................... 3-70 CHAPTER 4 POWER SECTOR STATUS IN STATE 4.1 MAHARASHTRA STATE (MS) ..................................................................................... 4-1 4.1.1 Political Situation ................................................................................................ 4-1 4.1.2 Economic Situation .............................................................................................. 4-2 4.1.3 State Budget and Financial Situation of Executing Agency ................................ 4-5 4.1.4 Power Sector Overview ....................................................................................... 4-7 4.1.5 Power Supply Structure ....................................................................................... 4-8 4.1.6 Power Supply/Demand Scenario ......................................................................... 4-9 4.1.7 Generation ........................................................................................................... 4-17 4.1.8 Transmission ........................................................................................................ 4-31 Electric Power Development Co., Ltd. ii Data Collection Survey on Power Sector in India Final Report 4.1.9 Distribution .......................................................................................................... 4-32 4.2 ODISHA STATE (OD) ..................................................................................................... 4-39 4.2.1 Political Situation ................................................................................................ 4-39 4.2.2 Economic Situation .............................................................................................. 4-40 4.2.3 State Budget and Financial Situation of Executing Agency ................................ 4-43 4.2.4 Power Sector Overview ....................................................................................... 4-45 4.2.5 Power Supply Structure ....................................................................................... 4-46 4.2.6 Power Supply / Demand Scenario ....................................................................... 4-48 4.2.7 Power Generation ................................................................................................ 4-55 4.2.8 Transmission .......................................................................................................
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