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 .......................................................................................................