icra internship report
TRANSCRIPT
SUMMER INTERNSHIP REPORT
A Study of
Indian Power Sector-Enthralling Private investors?
done at
ICRA Limited by
Manish Kumar Urele
0911033
Under the guidance of
Namita Menon
Senior Analyst, ICRA ltd.
2
Contents
1.INDIAN POWER SECTOR: AN OVERVIEW ........................................................................................................ 5
1.1.Widening Gap between Demand & Supply ......................................................................................................... 6
1.2.Change in ownership structure: .......................................................................................................................... 6
1. 3 Trends in power generation through five year plan periods ............................................................................. 7
1. 4 Capacity addition programme-target & Achievements .................................................................................. 10
1. 5 Demand Forecast ............................................................................................................................................ 11
1. 6 Coal Availabilty likely to be a bottleneck: ......................................................................................................... 12
1. 7 Transmission: ................................................................................................................................................... 13
1. 8 Distribution:...................................................................................................................................................... 14
1. 9 Private Participation ......................................................................................................................................... 15
1. 10 Investment opportunity: ................................................................................................................................. 16
2. BOTTLENECKS IN INDIAN POWER SECTOR ................................................................................................... 18
2.1 Power Sector Policy Issue ................................................................................................................................ 18
2.2. Transportation and Handling facilities for fuel ............................................................................................... 19
2.3Power equipment supplies ................................................................................................................................. 20
2.4. Regulatory & political risk .............................................................................................................................. 20
2.5. Access to fuel, land and water ....................................................................................................................... 21
2.6 GAP IN DEMAND & SUPPLY OF REQUIRED HUMAN CAPITAL ............................................................................................. 21
2.7.Law and Order................................................................................................................................................... 22
2.8 Preferential treatment with government owned/regulated companies .......................................................... 22
2.9. Non-establishment of long-term debt market ................................................................................................ 23
4.10 Meagre investment in R&D ............................................................................................................................. 23
4.12Vicious circle of various clearances .................................................................................................................. 23
3. FUELING GROWTH ...................................................................................................................................... 24
3.1Coal Reserves in India ........................................................................................................................................ 25
3.2Coal Production .................................................................................................................................................. 25
3.3Supply & Demand of coal for power sector ........................................................................................................ 26
3.4Bridging the gap ................................................................................................................................................. 27
3.4.1.Coal import ........................................................................................................................................... 27
3.4.2. Diversify the portfolio of coal importing nations ................................................................................ 29
3.4.3. Overseas Mining .................................................................................................................................. 30
3.4.4. Captive Mining .................................................................................................................................... 30
3.4.5.Private Mining ...................................................................................................................................... 30
3.4.6. Increasing the thermal efficiency of power plants .............................................................................. 31
3.4.7. Law and Order ..................................................................................................................................... 31
3.5Key Challenges facing the coal industry ............................................................................................................. 31
3.6Key Reform Measures required .......................................................................................................................... 32
3.6.1. Policy and Regulatory Framework ..................................................................................................... 32
3.6.2. Deregulation of the coal sector .......................................................................................................... 33
3.6.3. Independent Regulatory body ............................................................................................................. 33
3.6.4. Improvement in operational efficiency of the coal companies .......................................................... 33
3.6.5. Strengthening of logistics in coal distribution .................................................................................... 34
3
3.6.6. Investment in R & D ............................................................................................................................. 34
3.6.7. Focusing on technology for future ...................................................................................................... 34
3.6.8. Information Technology for the Mining Industry ............................................................................... 34
3.7 World coal Reserve and Trends in Global production and consumption .......................................................... 36
4.TRANSMISSION ........................................................................................................................................... 38
4.1Growth in Transmission Segment ...................................................................................................................... 38
4.2.Development of National Grid .......................................................................................................................... 40
4.311TH PLAN TARGETS AND ACHIEVEMENTS Funds Requirement in Transmission Segment ........................................... 40
4.4Funds Requirement in Transmission Segment .................................................................................................... 42
4.5.Sources of Funds ............................................................................................................................................... 42
4.6.Funds Available and Sources of Funds For PGCIL .............................................................................................. 43
4.7.Private Players in the League ............................................................................................................................ 43
4.7.1. Powerlink Transmission Limited .......................................................................................................... 43
4.7.2. Reliance Power Transmission Limited ................................................................................................. 43
4.7.3. Infrastructure Leasing and Financial Services (IL&FS) ......................................................................... 44
4.74. Tata Power Limited .............................................................................................................................. 44
4.7.5. Adani Power Limited ........................................................................................................................... 44
4.7.6. Torrent Power Limited ......................................................................................................................... 45
4.7.7. Gammon Infrastructure Projects limited ............................................................................................. 45
4.7.8. Kalpataru Power Transmission Limited ............................................................................................... 45
4.8. Status of Transmission projects to be executed by Private Players in 11th
plan .............................................. 45
4.9Outlook............................................................................................................................................................... 46
5. A STUDY ON ADANI POWER LIMITED .......................................................................................................... 48
5.1Background ........................................................................................................................................................ 48
5.2.Company profile ............................................................................................................................................... 49
5.3Power Projects under construction .................................................................................................................... 50
5.4.Future projects ................................................................................................................................................. 52
5.5.Recent developmentNon-establishment of long-term debt market ................................................................ 52
5.6SWOT analysis of Adani Power Limited ............................................................................................................. 52
APPENDIX A ................................................................................................................................................... 56
A.1. Raw coal production (in million tonnes) .......................................................................................................... 56
A.2. Regression analysis to determine the linear estimate of coal production ...................................................... 56
A.3. Normative requirement of coal & status of coal linkage ................................................................................. 57
A.4. Indonesian Coal Mining Industry Projections .................................................................................................. 57
A.5. World coal reserve (Country wise data) ........................................................................................................... 58
A.6.Worldwide coal production and Consumption trend ........................................................................................ 59
A.7.Existing/Proposed Inter-Regional Power Transfer Capacity ............................................................................. 61
A.8. Proposed Transmission Line with Private Participation .................................................................................. 62
APPENDIX B ................................................................................................................................................... 63
B.1. Existing Policy framework in coal industry: A Bird Eye view ............................................................................ 63
APPENDIX C ................................................................................................................................................... 65
4
C.1. State wise status of IPPs .................................................................................................................................. 65
5
1. Indian Power Sector: An Overview
The Indian power sector has registered significant progress since the process of planned
development of the economy began in 1950. Hydro-power and coal based thermal power
have been the main sources of generating electricity. Nuclear power development, which
was introduced in late sixties, is remained on slower track. Decades of economic
planning in India following independence placed significant emphasis on the
development of the power sector. Electricity generation capacity with utilities in India
had grown from 1713 MW in December 1950 to about 157229.48 MW1 (as on 28 Feb
2010). Despite the fact that present generation capacity is being 100 times than that of
the early 1950s, the per capita consumption of electricity is still not even comparable in
any standard with per capita consumption of world average of 2,595.7 Kwh.2 Per capita
electricity consumption is even lower than some of the developing Asian economies
(Table 1.0)
Table 1.0
S. No. Country Per Capita Electricity Consumption (kWh)
1 China 1780.5 2 Thailand 1950.1 3 Korea 7803.9 4 Kazakhstan 4071.7 5 Malaysia 3301 6 India 480.5
7 USA 13635.7 8 World 2,595.7
During 2005-06 The energy is a prime mover for growth of an economy. The reason for low per capita
electricity consumption could be many such as
• Non availability of electricity in rural areas
• Wide gap between demand and supply
• Lower level of industrialization, high cost of electricity etc.
1 http://www.powermin.nic.in/indian_electricity_scenario/introduction.htm
2 http://earthtrends.wri.org/text/energy-resources/variable-574.html
International Energy Agency (IEA) Statistics Division. 2007. Energy Balances of OECD Countries (2008 edition)--Economic
Indicators and Energy Balances of Non-OECD Countries (2007 edition)--Economic Indicators. Paris: IEA. Available at
http://data.iea.org/ieastore/default.asp.
6
These reasons are evident in Indian context. The govt. has put enormous effort for rural
electrification but still there is long way to go to accomplish the mission of “Electricity
for all”. Total inhabited village according to 2001 census are 593732, So far 497709
(83.8% of total) villages are being electrified and 96023 more villages are to be electrified.
Out of these 1344 villages are being electrified in period 01-Apr-09 to 31-Jan-103.
1.1. Widening Gap between Demand & Supply: The Indian Power industry has since
independence faced the demand and supply gap4 (Table 1.1.1). The said gap is still
prevalent even after government initiated the reform process in early nineties.
Table 1.1.1
Year Energy Requirement
(MU)
Energy Availability
(MU)
Energy Shortage
(MU)
Energy Shortage %
2002-03 545983 497890 48093 8.8 2003-04 559264 519398 39866 7.1 2004-05 591373 548115 43258 7.3 2005-06 631554 578819 52735 8.4 2006-07 690587 624495 66092 9.6 2007-08 737052 664660 72392 9.8 2008-09 777039 691038 86001 11.1
It is evident from the statistics that the demand-supply gap is widening over the period
of time. In the year 2008-09, the electricity generation grew by 2.71% from 704.45
Billion Units (BU) to 723.56 BU, whereas during the same period the requirement grew
from 739.35 BU to 774.32 BU. The annual energy shortage increased to 11% from 9.8%
in the previous year. The peak shortage however declined to 11.9% in the year 2008-09
from 16.6% in the previous year. The gross electricity requirement by the end of the
Eleventh Plan as projected by the Working Group on Power is 1038 BU and peak
demand estimation is 151000 MW5.
1.2. Change in ownership structure: A natural-monopoly of government was used to justify
the argument that since power sector is a public-utility and hence better to be operating
through government. The lack of competition, accompanied by political influence and
operational inefficiency, has steered the sector towards the abyss of financial distress.
Policymakers recognized this in the early 1990s and opened up the sector for private
participation. Encouraged by favorable policy developments and the advent of
3 http://www.powermin.nic.in/rural_electrification/village_electrification.htm
4 Ministry of power Annual report 2008-2009; http://www.powermin.nic.in/reports/pdf/Annual_Report_2008-09_English.pdf
5 http://recindia.nic.in/download/ar2008-09.pdf
independent regulation, greater private participation is becoming visible in the sector,
though not to the extent desirable.
The existing ownership structure of the generating
and state utilities (Table 1.2.1
owned by the private sector6.
The fuel wise break-up of the installed generation
1.2.2, which is clearly depicting the dominance of thermal power plant
portfolio with almost two-third share.
Generation Installed Capacity (MW) of Power Utilities
Ownership
Thermal
Coal Gas
State 44002 4046.12
Private 7426.38 6307.5
Central 30915 6702.23
Total 82343.38 17055.85
Source: Infraline
1.3. Trends in power generation through five year plan periods:
growth rates since 1947 are given below (As on February 2
6 http://www.powermin.nic.in/indian_electricity_scenario/introduction.htm
7
independent regulation, greater private participation is becoming visible in the sector,
though not to the extent desirable.
The existing ownership structure of the generating capacity is still
1.2.1) and only 18% of the generating capacity in the country is
Table 1.2.1
up of the installed generation capacity in India ha
s clearly depicting the dominance of thermal power plant
third share.
Table 1.2.2
Generation Installed Capacity (MW) of Power Utilities (Up to February 28, 2010)
Mode-wise breakup
Thermal Nuclear Hydro (Renewable)Diesel Total
602.61 48650.73 0 27065
597.14 14331.02 0 1233
0 37617.23 4340 8565
17055.85 1199.75 100598.98 4340 36863.4
ion through five year plan periods: The installed capacity and its
growth rates since 1947 are given below (As on February 28, 2010
http://www.powermin.nic.in/indian_electricity_scenario/introduction.htm
50%
32%
18%
Ownership Structure
State
Central
Private
independent regulation, greater private participation is becoming visible in the sector,
still dominated by CPSUs
of the generating capacity in the country is
capacity in India has shown in table
s clearly depicting the dominance of thermal power plants in generation
February 28, 2010)
Grand Total Hydro
(Renewable) RES**
(MNRE)
27065 2662.41 78378.14
1233 12764.69 28328.71
8565.4 0 50522.63
36863.4 15427.1 157229.48
The installed capacity and its
8, 2010)
8
Table 1.3.1
Plan/Year Hydro Thermal Renewable Energy Sources
Nuclear Total CAGR
March 1985 (End of 6th Plan) 14460 27030 1095 42585 -
March 1990 (End of 7th Plan) 18308 43763 1565 63636 9.89%
March 1992 (End of 2 Annual Plans)
19194 48086 1785 69065 4.27%
March 1997 (End of 8th Plan) 21658 61912 2225 85795 4.84%
March 2002 (End of 9th Plan) 26269 74549.54 1507.46 2720 105046 4.49%
March 2007 (End of 10th Plan) 34653.77 86014.84 7760.6 3900 132329.2 5.19%
Mar-08 35908.76 91906.84 11125.41 4120 143061
Mar-09 36877.76 93725.24 13242.41 4120 147965.4
Feb-10 36863.4 100599 15427.1 4340 157229.5 6.27%
It is evident from the table that after seventh plan period we have not seen a healthy
growth in terms of capacity addition. The decline in the proportion of Hydro capacity,
which started in the early seventies, has, continued. The share of Hydro-power projects
in the total installed capacity which stood at 51% during 1962-63 slipped to 34% at the
end of 6th plan and further to 26 percent at the end of 10th plan, against an optimal
share of 40%.
The Plan wise capacity addition performance shows that the Central Sector
organizations have realized better capacity addition as compared to the State sector
utilities. As a result, the share of Central Sector in the total installed capacity, which
was 16 percent at the end of the 7th Plan, rose to around 32 percent in February, 2010.
Private companies own about 18 percent of the total installed generation capacity. Their
share, however, has expected to increase in the future with the opening up of the power
sector for private participation.
The Plant Load Factor, which is an important indicator of the performance of the
thermal power generating units, has shown steady improvement at all India level and
has increased from 64.4% at the end of eighth plan period to 77.03% at the end of
February 2010. However, there remains considerable scope for further improvement,
particularly in respect of the State Sector thermal plants. The plant load factor at
various plan periods has shown in table 1.3.2
The losses on account of transmission and distribution have declined marginally but
remain much higher than the technically acceptable levels. Partly, this is attributable to
9
Table 1.3.2 Plant load Factor
five year plans Target Actual Sector-wise (Actual)
(%) (%) Central State Private
at the end of 8th plan 63.6 64.4 71 60.3 71.2
at the end of 9th plan 69.9 69,9 74.3 67 74.7
at the end of 10th plan 76.3 76.8 84.8 70.6 86.3
2009-10 (Up to Feb 2010) 77.02 77.03 85.05 70.45 82.02
Source: Infraline
inadequate investment in the T & D system.
Though we have seen a significant growth in electricity generation over the years, the
shortage of power continues to exist primarily because of growth in demand for power,
outpacing the growth in generation and generating capacity addition. The power supply
position at the end of various plan periods has shown in table 1.3.3
Table 1.3.2
Energy
Plans Requirement Availability Shortage MU % Growth MU % Growth MU %
At the end of 7th plan 2,88,974 2,66,432 22,542 7.8 At the end of 8th plan 4,13,490 6 3,65,900 3.3 47,590 11.5 At the end of 9th plan 5,22,537 3 4,83,350 3.4 39,187 7.5 At the end of 10 th plan 6,90,587 9.3 6,24,495 7.9 66,092 9.6 2009-10* 6,88,213 - 620,074 - - -
* April 2009 to January 2010
The peak demand shortage was also remained a challenge for the Indian power sector.
However, we were able to maintain the steady growth in supplying peak load vis-à-vis
increase in demand, but we had not outwent the growth so that to meet a steady deficit
of peak load. The trends in peak deficits is shown in table 1.3.4
The main reasons for shortage of power are-
• Growth in demand for power outstripping the growth in generation and capacity
addition,
• Shortage of peaking power in the grid.
• Low Plant Load Factor of some of the thermal generating units, mostly in the State
Sector
10
Table 1.3.3(Peak Deficit trends)
Demand Met Shortage
(MW) % Growth (MW) % Growth (MW) %
At the end of 7th plan 48,055 39027 9,028 18.79%
At the end of 8th plan 63,853 32.87% 52,376 34.20% 11,477 17.97%
At the end of 9th plan 78,441 22.85% 69,189 32.10% 9252 11.79%
At the end of 10th pl an 100,715 28.40% 86,818 25.48% 13,897 13.80%
2009-10* 116,281 15.46% 101,609 17.04% 14,672 12.62%
* April 2009 to January 2010 ; CAGR = Compounded Annual Growth Rate
• High Transmission & Distribution losses
• Inadequate sub-transmission and distribution network in some States.
• Inadequate inter regional transmission capacity, for supplying power from surplus
regions to deficit regions.
• Poor financial position of State Utilities rendering it difficult for them to raise the
resources necessary for making required investments to create adequate
generation, transmission and distribution system.
1.4 Capacity addition programme-target & Achievements: The planning commission and Ministry
of Power had set the target of 41,110 MW to be added in the system to meet the growing
power requirement. Out of this, the share of Central Sector was 22832 MW and that of
the Private Sector was 7121 MW. The State Sector had a share of 11157 MW. However,
once again the actual capacity addition in the power sector has been far below the target
set by the Ministry of Power. Capacity addition during this plan period was only 21180.2
MW an achievement of trifling 51.6% of the target. The summary of actual achievement
has shown in table 1.4.1
Table 1.4.1 (Capacity Addition-10th Plan achievement)
Sector Hydro Thermal Nuclear Total % achievement
Central 4495 7330 1180 13005 56.9
State 2691 3553.6 0 6244.6 55.9
Private 700 1230.6 0 1930.6 27.1
Total 7886 12114.2 1180 21180.2 51.6
% Achievement 54.8 47.6 90.8 51.6
• However, shortfalls in all the three segments i.e. Central, State and Private Sector
has reported, the shortfalls in achieving the Private sector targets of capacity
addition are notable with only 27% achievement.
11
• In terms of fuel mix comparison, nuclear sector was able to achieve 90.8% of the
modest target set for it.
• In Hydro segment 54.8% of the target was achieved and X Plan is notable in the
context of clearing the backlog. There were number of hydro projects which were
originally due for commissioning in the Eight Plan or even before. But these
projects due to associated problems were brought into the Tenth Plan with a long
history of time and cost over run. These projects included Naptha Jhakhri HEP
(1500 MW), Tehri HEP (1000 MW), Dulhasti HEP (390 MW) and Sardar Sarovar
(1450 MW). In the Tenth Plan we have the satisfaction of bringing these projects
on track and all of them have been commissioned in the X Plan.
• The dismal performance of Thermal segment at 47.6% of the target is mainly due to
most of the coal based backup projects could not set due to supply constraint on
part of BTG equipment manufacturers especially BHEL.
The planned capacity addition in 11th plan was 78577 MW, which has further revised to
62,374MW in the 11th plan Mid-Term Appraisal. The year wise capacity addition target
and the actual achievement has shown in table 1.4.2
Table 1.4.2 (Target & Achievement of capacity Addition in 11th Plan)
1.5 Demand Forecast: According to the 17th Electrical Power Survey report the demand
projections on all India basis for the year 2011-12, 2016-17 and 2021-22 has given
below in table 1.5.1
Year Total
Hydro Thermal Nuclear Hydro Thermal Nuclear Hydro Thermal Nuclear
Target 690 3490 660 1682 4767 0 0 750 0 12039
Achievement 1030 1990 220 1393 3880 0 0 750 0 9263
Target 0 1750 660 1097 1262.2 0 0 2761 0 7530.2
Achievement 0 750 0 969 852.2 0 0 882.5 0 3453.7
Target 252 2490 660 301 4679 0 292 5833 0 14507
Achievement 0 1740 440 39 3079 0 0 4287 0 9585
Target 529 5890 1220 597.5 6012 0 219.5 5891 0 20359
Achievement - - - - - - - - - -
Private
2007-08
2008-09
2009-10
2010-11
Central State
12
Table 1.4.1
Year Electrical Energy Requirement at Power Station Bus Bars (MU)
Annual Peak Electric Load at Power Station Bus Bars (MW)
2011-12 968659 1,52,746
2016-17 1392066 2,18,209
2021-22 1914508 2,98,253
1.6 Coal availability likely to be a bottleneck: There are mainly three sources of energy for power
generation on which India is relying, namely, Thermal, Hydro and Nuclear. Power
generation through nuclear energy is although at nascent stage but nuclear deal with
US and other technological advance countries will, in long run, certainly supercharge
the power generation through this untapped source. The availability of fuel is the major
concern for the policy maker especially for Thermal segment. Coal and gas supply is
likely to become bottleneck in achieving the planned capacity addition target of current
and forthcoming five-year plans. Renewable energy is so far remained untapped, but it
seems to be the promising source of energy in near future provided we could develop the
required infrastructure and technology to reap the vast unexploited renewable energy
resource. The break-up of total generating capacity in India according to the fuel used is
given in table 1.6.1.
As per table 1.3.1, it is evident that our energy requirement is largely dependent on coal.
53.3% of our energy requirement is fulfilled through coal and hence it can be easily
inferred that in the long-run, availability of coal is going to play a substantial role in
meeting the energy requirement of the nation. The coal reserves of India up to the depth
of 1200 meters have been estimated by the Geological Survey of India at 257.38 billion
tonnes as on 01.04.2007. Coal deposits are mainly located in Jharkhand, Orissa,
Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and Maharashtra.
Table 1.6.1
Fuel MW %age
Total Thermal 100598.98 64.6 Coal 82,343.38 53.3 Gas 17,055.85 10.5 Oil 1,199.75 0.9
Hydro (Renewable) 36,863.40 24.7 Nuclear 4,340.00 2.9 Renewable Sources 15,427.10 7.7 Total 1,57,229.48
As on 28 Feb 2010
13
Hydropower is currently accounting for about 25% of nation’s energy requirement. The
hydro potential is by and large untapped because of the several issue associated with it
such as very long gestation period, relocation and rehabilitation of the affected mass
population, submergence of forest and its adverse effects on flora and fauna etc.
1.7 Transmission: Transmission of electricity is defined as bulk transfer of power over a
long distance at high voltage, generally of 132 kV. In India bulk transmission has
increased from 3708 ckm (Circuits Kilometers) in1950 to more than 265,000 ckm today. The nation is divided into five regions for transmission system, namely, Northern region,
North-Eastern region, Southern region, Eastern region and western region. The
Government of India has an ambitious mission of ‘POWER FOR ALL BY 2012’. This
mission would require that country’s installed generation capacity should be at least 2,
00,000 MW by 2012 from the present level of 1,57,229.48 MW. To be able to transmit this
power to the entire country an expansion of the regional transmission network and inter
regional capacity to transmit power would be essential. The power needs to be carried
great distances to areas where load centers exist. Table 1.7.1 shows the existing
transmission capacity in India.
As part of its ambitious mission to provide electricity to the entire nation by 2012, the
Indian government is looking to strengthen the national power grid by adding more than
60,000 circuit kilometers (37,200 miles) of new transmission at a cost of about 7.5
billion rupees (R) ($146 million).
That integrated grid is expected to carry as much as 60% of the power generated in the
country. The government is also carrying out a Rs 6.5 billion ($126 million) expansion of
the five regional systems as well as the interregional grid to boost transmission capacity
from 17,000 MW to 37,000 MW7. This project will primarily connect load centers to
generation resources that are unevenly distributed around the country.
While the predominant technology for electricity transmission and distribution has been
Alternating Current (AC) technology, High Voltage Direct Current (HVDC) technology has
also been used for interconnection of all regional grids across the country and for bulk
transmission of power over long distances. A lot of emphasis is being given to increase
the inter-regional power transmission capacity. The proposed target is to achieve
cumulative capacity (all five regional grids) of 38,650 MW8 by the end of 11th planning
year period.
7 http://www.powermag.com/nuclear/Powering-the-People-Indias-Capacity-Expansion-Plans_1858.html
8 Ministry of power annual report 2008-09
14
Table 1.7.1 (All figures in ckm)9
At the end of 10th plan 11th plan Upto March 2009
+500 kV HVDC
Central 4368 5668 State 1504 1504 Total 5872 7172
765 kV
Central 1775 2709 State 409 409 Total 2184 3118
400 kV
Central 50992 61800 State 24730 27696 Total 75722 89496
220 kV
Central 9444 10066 State 105185 112894 Total 114629 122960
1.8 Distribution: Distribution is the vital component of the entire electricity supply chain,
despite being of its crucial importance it remained as neglected element and thus,
resulting in huge Aggregate Technical and Commercial (AT&C) losses. Most of the ills of
the Indian power sector find their origin in the distribution segment. The distribution
segment has lagged both in terms of operational efficiency as well as financial
performance. The slow pace of investment generation as well as distribution segment
can be attributed to the severe cash flow problem associated with the under-recovery of
costs and poor collection efficiency. Poor operational efficiency further aggravates the
situation. Table 1.8.1 shows the All India AT&C loss10 which reveals that almost 1/3rd of
the generated power is drained away as losses. This is a great matter of concern for a
developing nation like ours. With a vision to achieve overall growth of GDP at the rate of
8-9% our planning committee estimated the installed capacity necessary to achieve the
said target. With the losses in the system of such a mammoth magnitude will land us to
nowhere near the target. Proper investment and planning is required to minimize these
losses to acceptable limits.
9 http://www.indiainbusiness.nic.in/industry-infrastructure/infrastructure/power.htm
10 http://www.cea.nic.in/power_sec_reports/Executive_Summary/2010_01/1-2.pdf
15
Table 1.8.1 (All figures in percentage)
Year AT & C losses*
2002-03 32.54 2003-04 34.78 2004-05 34.33 2005-06 34.54 2006-07 32.07
*PFC figures
PFC: Power Finance Corporation Ltd.
Recognizing the urgent need of reforms in the distribution sector the Government of
India introduces, the Accelerated Power Development Programme (APDP) in 2001, for the
strengthening of Sub Transmission and Distribution network and reduction in AT&C
losses. The main objectives of the programme include improving the financial viability of
state utilities, reducing of aggregate technical and commercial (AT & C) losses,
improving customer satisfaction, and increasing the reliability and quality of the power
supply.
1.9 Private Participation: Long after the independence, Indian government realized need of
private players to ramp up the growth of power sector. To enable the private companies
to enter in the sector, Indian government has introduced many policies/ regulation (eg.
Electricity Act 2003, National Electricity Policy) so that private players will ready to
channel their money in power sector. At present, private players share 18% of total
installed capacity in power portfolio.
The government realized that unless comprehensive reforms are undertaken it would be
difficult to attract private sector to invest in the power sector. By enactment of Electricity
act 2003, formation of central electricity regulatory commission are the steps in this
regard. The government also implemented various policies to encourage participation of
private sector. Some of these policies were liquid fuel policy, Hydro power policy, Mega
Power Policy etc. However, the outcome of these policies was not as expected. The
contribution of private sector in capacity addition during 10th plan was only 1970.6 MW
which was about 16% of the total achievement in the period.
The various issues involved in the low level of private participation are discussed below:
Most of the project are financed through Project Financing route. The main
difference between corporate financing an project financing is that primary source
of loan repayment is sponsoring company backed by entire balance sheet not the
16
project alone. If project fails, the investor can expect significant losses even if it is
sponsored by AAA- rated company. This risk is the major concern for the potential
investor and hence deterring them to invest in private power projects.
Large scale capital intensive projects usually requires huge investment up front
and only start to generate revenues after a significantly long construction period.
Therefore, matching debt repayment obligation with project revenue cash flow
implies that, on average, project finance is characterized by much longer
maturities compared to other form of financing. With the change in
macroeconomic condition the lender will prone to suffer significant losses by
investing in these projects.
There are numerous operational agreement to be executed before a development of
power project which includes EPC contract, fuel supply agreement, power
purchase agreement, Govt. clearances etc. Even if the project is being prosed by
private players there are too many hurdles which private players have to cross to
commence financially viable project. Many projects are delayed due to these
agreement and later suspended by the private players with bitter experience in the
power sector.
The source of financing for independent power project are scarce, because the risk
of development are high. Until the project reaches financial closing for
construction, ther are a multitude of risk that could reduce the value of the
project to zero. This risk include:
� Political opposition of project
� Permitting risk
� Regulatory disapproval and change in law
� Inability to obtain PPA, either because the power price is too low or the term
are not acceptable
� Inability to secure fuel and fuel transportation under long term contract
Dealing with SEBs risk: The weak financial health of the SEBs is the major
concern for private players because the ability to repay the loan by private players
is directly link with the revenue generated from SEBs. In case SEBs are not in
position to pay to the private players, this will be poses a great risk on private
players in terms of economical operation of plant and the credit worthiness
associated with the name of the private company.
However, govt is timely identifying the issues and preparing the ground so that private
players can afford to enter in the power sector. It is estimated that about 23100 MW of
thermal project for which main plans order have been placed, 21040 MW of UMPP, 8380
17
MW for which linkages/ part linkages are identified and is likely to be commissioned by
private sector in 12th plan.
For 11th plan most of the project announced are either not able to have the financial
closure or having in one or other phase of clearances seeking. The state wise detail of
the projects are shown in Appendix C.1
1.10 Investment opportunity11: The Sixteenth Electric Power Survey projects a capacity
requirement of about 100,000 MW for the period 2002–12. Apart from generation
capacity addition and associated network strengthening, additional investment is
required to extend the transmission and distribution network to meet the requirement of
the un-served population.
Government of India estimates for investments in the Power Sector, in order to meet the
required targets for Eleventh Plan, stand at Rs.10316 Billion which comprises of funds
required for adding power generation capacity, R&M of existing power plants, expansion
and up-gradation of transmission and distribution infrastructure, decentralized
distributed generation etc.
The three key components which drive the Power Sector are Generation, Transmission
and Distribution. The total requirement of funds for generation projects, during the
Eleventh Plan period is estimated at Rs.4,108,960 million, with Rs.2,020,670 million for
the central sector, Rs.1,237,920 million for the state sector and Rs.850,370 million for
the private sector. Investments for transmission system development and related
schemes during the Eleventh Plan period is estimated at Rs.1,400,000 million, with
Rs.750,000 million for the central sector and Rs.650,000 million for the state sector. The
total fund requirement for sub-transmission and distribution systems development for
urban as well as rural areas during the Eleventh Plan period is estimated at
Rs.2,870,000 million inclusive of APDRP and RGGVY schemes.
11
http://recindia.nic.in/download/ar2008-09.pdf
18
2. Bottlenecks in Indian Power Sector
There is an immense opportunity for growth in Indian Power sector, but it could be
hindered or more appropriate to say, it is being outpacing because of the below
mentioned factors:
2.1 Power Sector Policy Issue:
The Indian power sector has largely dominated by political influences. Though policy
formulation may happen at the central level, its implementation lies with states. Unlike
the telecom sector, in power, the success or failure of implementation depends largely on
the will of the ruling government at the state level. To bring about reforms, like
implementation of unbundling of SEBs, privatization of transmission and distribution
are some of the responsibilities which lies with state government and the benefits from
these reforms and policies are bearing the direct relationship with efficiency with which
state govt. are implementing them. Power is a highly politicized subject and often guided
by the possible outcome of near elections. More often than not, reforms take a backseat,
given the political nature of the sector. Most importantly, in most cases state utilities
control distribution assets along with access to end customers. Tariff for different
consumer categories, is determined by the respective state electricity regulator based on
fixed RoE norms. Since the hike in tariff has not kept pace with the cost of supplying
power, losses have been rising for distribution utilities. The table 2.1.1 below shows the
skewed nature of tariff and its consequences in terms of huge losses to the SEB’s and
table 2.1.2 shows the cumulative losses in Rs. Crore to SEBs Table 2.1.1
Year Cost of supply (Paise/kwh)
Realisation (Paise/kwh)
Only Agri (Paise/kwh)
Loss (Paise/kwh)
FY02 246 181 59 65 FY03 238 195 77 43 FY04 239 203 72 36 FY05 254 209 76 45 FY06 258 221 79 37 FY07 276 227 71 49 FY08 290 232 71 58
Source: CEA, Edelweiss research
One of the main reasons why state governments have been hesitant in hiking the
agriculture/domestic tariff is that this segment forms the largest part of their vote
banks. Consequently, tariffs are far higher for industrial users, forcing them to set-up
captive power plants. If this trend continues, it could damage state financials further as
industrial customers, who bear the burden of high tariff, are going away (captive),
19
Table 2.1.2 State wise Commercial Loss (w/o Subsidy) of Power Utilities (Rs. Crore)
Region 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Eastern Region
-3,128 -3,316 -1,114 -1,460 -2,461 -5,173
N-E Region -1,136 -1,238 -1,081 -1,543 -806 -946
Northern Region
-8,586 -8,223 -8,031 -14,361 -10,391 -13,722
Southern Region
-11,289 -5,833 -5,132 -4,578 -4,894 -5,996
Western Region
-5,192 -2,583 -3,748 -2,053 -1,577 -1,609
Grand Total -29,331 -21,193 -19,106 -23,995 -20,129 -27,446
Source: Infraline
leading to higher subsidy funding by state governments. Further, this type of skewed
tariff structure will work as repellent for private players to invest in this sector. Since
this tariff structure will lead to the bad financial health of SEBs, which may, in turn
default in payment to these private players. Moreover, Indian transmission and
distribution system is not efficient; we have almost 33% of AT & C losses. The theft of
electricity is also a major concern. SEB’s are carrying this burden for years and resulted
into unhealthy financial condition. Whatever power is transmitted, only two-third of its
get metered and billed. This resulted in huge losses. Unlike SEBs, private player will not
be interested in power production until they ensured that every single unit that is
produced and transferred is billed.
2.2 Transportation and Handling facilities for fuel
Manifold increase in the demand for coal in coming years, particularly to meet the
energy requirement of the country, has put an onerous responsibility on the coal sector.
Although extra efforts are being made to meet this demand, the related infrastructure
appears to be stagnating, which is creating new problems for transport of coal to various
power plants across the country. This situation will worsen if infrastructure like rail,
road and port for the import of coal has not developed apace with the capacity addition
programme. Rail infrastructure will have to be strengthened to handle this demand.
Given that the coal import figures are also likely to go up to 500 Million TPA, the ports
must also gear up and invest in infrastructure development. At present, the ports on an
average cannot handle more than 30,000-35,000 tonnes of coal. Furthermore, a well
thought-out rail-cum-sea route to the southern and western ports should be given
consideration in the 11th and 12th Plans. The government must also consider coal
20
slurry pipelines. This mode of transport has discussed several times, but unavailability
of water and high implementation costs have rendered the proposition unviable.
However, no study has made to update the earlier studies after 1992. The earlier studies
must be reviewed in light of international experience
2.3 Power Equipment Supplies
The equipment used in power plant, if not supplied on time, could cause the delay in the
execution of project. In recent times, quite a few projects have got delayed due to delayed
equipment delivery across BTG (Boiler, turbine & Generator) and BoP (Balance of Plant)
segments. Selected equipment suppliers like transformers manufacturers have
increased capacity, but most of the other equipment suppliers (BTG and BoP) are yet to
increase their manufacturing capacity.
BHEL and Thermax have been key boiler manufacturers in India; BHEL, along with
Siemens, has been a key player in turbine generators. BHEL, the largest equipment
vendor in the country, has 10 GW annual BTG capacity. However, according to the
Eleventh Plan capacity addition targets, the BTG industry is required to have an annual
capacity of ~15 GW. BHEL, the major power plant equipment manufacturer, is having
its books overbooked and to accommodate the growth in power sector we need a strong
backup of these suppliers. While in the interim, developers are resorting to imports,
equipment supply has expected to be a cause for concern for developers across the
vertical. Most of the private players are inclined to import Chinese BTG equipment
because of shorter lead-time. Given the poor performance and quality record of
accomplishment of Chinese power plant equipment in the country, the efficient and
smooth operation of the power plant could be a cause for concern. In addition, power
plants with Chinese equipment work better with imported coal compared to domestic
coal. However, the TPP is based on domestic coal. Hence, its operating and maintenance
could turn out to be a cause for worry.
2.4 Regulatory & political risk
CERC is the regulatory body that sets benchmark norms, which various states could
adopt with minor changes post approval. Since most of the existing power projects are
regulated and we expect T&D utilities to continue to be regulated over the near future,
any change in norms that would affect returns could influence earnings if the same is
not offset through scope for efficiency gains. Moreover, political risk is also played as
anti-catalyst in power sector growth.
21
2.5 Access to fuel, land and water:
Most projects, going forward, are likely to be on competitive basis. Access to fuel, land
and water are critical to complete projects on time, remaining competitive at the same
time. The requirement is likely to be significantly increase in the Twelfth Plan period.
Sourcing them at reasonable prices could be a key hurdle. Any delay in execution may
not only result in higher project costs, but could also risk penalty payments; since tariffs
are predetermined, returns could be significantly hit. Table 2.5.1 indicates the
requirement of these three essential elements per MW of electricity produced based on
coal/gas as fuel input.
Table 2.5.1
Land Water Fuel Coal 0.8-1.4 acres 29 mn ltrs p.a. 3000-5000 tonnes p.a. Gas ~0.1 acres 10 mn ltrs p.a. 0.05 mmscmd p.a.
Source: CEA, Edelweiss research
The supplies from Coal India Limited is likely to increase from ~350 MT (End of 10th
Plan period) to ~ 500 MT by FY12E (End of 11th plan period), resulting in a shortfall of
~62 MT for coal-fired power plants; the deficit is expected to be met through imports.
Looking at the potential shortfall of coal in the coming years, many companies have
started looking for coal in countries like Indonesia to meet their requirements. Even
companies like NTPC have started importing coal (imports in FY09 – 2.5 mn tonnes;
FY10E – 12.5 mn tonnes) to meet coal requirement at their existing plants. GoI, taking
cognizance of the gravity of the situation, has started allotting coal mines to the private
sector so that mining of the crucial mineral can happen at a faster pace.
The other fuel like gas, nuclear fuel etc. is also going to be act as roadblock in the
growth path of Indian power sector, because of large demand and supply gap of these
resources.
2.6 Gap in Demand & Supply of required Human Capital: The total work force in the power
sector at the end of 10th plan was approximately 9.5 lakhs as per the Planning
Commission’s Working Group on Power for 11th Plan. The following are the
requirements for additional work force for the 11th plan assuming addition of 68,869
MW of generation capacity, 100,000 ckt. Kms of HV, EHV and UHV transmission lines
and 16 crore-distribution consumers.
22
Table 2.6.1 (Figure in thousands)
Area Technical (Work Force required)
Non Tech (Work Force required)
Total (Work Force required)
Thermal 31.4 12.3 43.7 Hydro 25.3 7.1 32.5
Nuclear 3.9 1.6 5.5 T & D 202.1 60.6 262.7 Total 262.7 81.7 344.4
Source: Planning Commission Working Group on Power for 11th Plan
It is evident from the table 2.6.1., that to achieve the target for 11th plan an additional
2.5 lakhs technical and 1 lakh non-technical staff is required. While large-scale
investments have been planned and numerous projects are underway, the lack of
competent work force to execute these projects, subsequently operate, and maintain
them is already being felt. The scarcity is increasing by the day and unless the
Government, industry and all other stakeholders invest in attracting and training the
available talent on an urgent basis, it has the potential to become a major bottleneck
and derail the rapid growth in the sector that has just begun.
2.7 Law and Order: India’s major coal reserves lie in the ‘red’ belt or the Naxal-affected
regions of the country. Power plants fuelled by coal blocks in these regions face issues
like irregular supply. Coal India Ltd (CIL), officials had earlier admitted to transportation
problems from coalmines in the Naxal-affected regions of Jharkhand, Orissa,
Maharashtra, Madhya Pradesh and Chhattisgarh. Although, at superficial level, Law and
order problem is not seems to bear any relation with the coal supply but on the ground
of reality, it is. The supply from these regions could boost if government pays proper
attention to maintaining law and order in these areas and the sense of safety to the
person associated with the coal mining.
2.8 Preferential treatment with government owned/regulated companies: Building a power
utility is a capital-intensive task. To raise the money for the power project, private as
well as public company are chasing to market. As an investor, one is always interested
to invest in public bodies and prefer public company over private company since one feel
investment in public (Govt. backed) company is safer. In this regard, although the
government has opened its door for private players, but where the question of fund
raising comes, they are still competitor. Regulation and reform will be effective only
when one can have fund to enter into that domain. The first thing is money so policies
must be designed to enable private players to raise easy-funds.
Further, in India, BTG packages (major power equipments) are being manufactured by
few public companies like BHEL, private companies have to depend on them to fulfill
23
their requirement. Here also private companies are subject to less preference than govt
owned bodies in case of fulfilling order backlog. This will hamper the project execution
and made companies to bear monetary losses associated with that.
2.9 Non-establishment of long-term debt market: In India, we do not have long-term debt
market. We can see its effect in the skewed preferences of power project development.
The private companies are inclined to build the thermal power project instead of hydro,
because of longer gestation period of hydro projects. Leaving aside the fact that, more
number of clearances required for hydro than compared with thermal, the non-
availability of long-term debt is the other explanation for the said skewed tendency. The
use of insurance and pension fund for infrastructure development will boost the private
share in power sector. The corporate bond market (If allowed) could also make private
player to enter in the power business.
2.10 Meagre Investment in R & D: We have put much less attention toward R&D, due to
which, our power system is not efficient. Whether it be, generation, transmission or
distribution, we are inefficient. We know that we are going to have a huge deficit of coal
supply in near future, through R & D we could come up with new technology which can
produce more energy from per unit of coal (Fuel) consumed. Presently, we are mixing the
imported coal with domestic coal to improve the overall efficiency of power plant,
pulverized coal based firing, coal firing in-tandem with oil firing are similar technologies
which we are implemented to improve the performance of power plant. There is
significant scope through R & D to come out with technologies, which enable us to
improve the efficiency of power plant. Similar story is for transmission and distribution,
we are having so much loss in t&d (though major is accounted by theft) but we are not
emphasizing the need of R & D in this field to make the system efficient.
2.11 Vicious Circle of various clearances: There are numerous clearance required to set up a
power plant. With the project financing, for most of the power projects it become very
crucial to complete the project on-time otherwise it will poses penalties as well as
monetary loss to the developer. There is long list of clearances which must have to
sought before commencing the project like forest, environment, aviation clearance,
techno-economic clearance, fuel linkage clearance, there are hundred procedures to
make to acquire land etc. this vicious circle of clearance make it very unlikely to the
project to complete on time. Government must have to redesign the list of mandatory
clearances or assure to provide clearance at faster pace.
24
Now we will discuss the various issues concerning growth of Indian power sector in
detail:
3. Fueling Growth: Coal dominates India’s 1,57,229.48 MW power generation portfolio
with mammoth share of about 53%. According to Planning Commission scenarios, by
2030, coal-fired capacity will likely be in the range of 200 GW to 400 GW, up from the
82 GW today12.
The Indian coal industry was nationalized in the early 1970s. The production of coal
increased from 70 MT (million tonnes) at the time of nationalization to 492.95 million
tonnes in 2008-09. Coal India limited and its subsidiaries are the major producers of
coal. 403.73 Million Tonnes of coal was produced by Coal India Ltd. and its subsidiaries
during 2008-09 as against the production of 379.459 million tonnes in the year 2007-
08 showing a growth of 6.4%. Singareni Collieries Company Limited (SCCL) is the main
source for supply of coal to the southern region. The company produced 44.54 million
tonnes of coal during 2008-09 as against 40.604 million tonnes during the last year.
Small quantities of coal are also been produced by TISCO, IISCO, DVC and others.
3.1 Coal Reserves in India: India is having a huge reserve of coal (coking & non-coking), India
has endowed with 267.2 Billion Tonnes of coal reserves (table 3.1.1). The proven reserve
stands at about 105.8 Billion Tonnes corresponding to approximately 8 % of world’s
total proven reserves. Coal production is being comes from open cast mines as well as
from underground mines; about 84% of the country’s coal production is from Open Cast
Mines. Power sector is the major consumer of the domestic coal production with nearly
75% share, other being steel and cement industry. Table 3.1.1 (Figures in billion tonnes)
Total Reserve
Proven Reserve
Indicated Reserve
Inferred Reserve
Coking 33.4 17.5 13.8 2.1 Non-Coking 233.8 88.3 109.7 35.8
Total 267.2 105.8 123.5 37.9 As on 01.04.2009As on 01.04.2009As on 01.04.2009As on 01.04.2009
Source: Coal India limited
12
Source: Central Electricity Authority, “Power at a Glance”; Ministry of New and Renewable Energy
25
However, we have huge reserve of coal but it is misnomer to state them as “Huge”,
because of its poor quality. Our coal is having high ash content of the magnitude of as
high as 30-40 %, compared with ash in coal in other countries of about 15-20%.
Moreover, the calorific value is also not very high.
3.2 Coal Production: The Coal India Limited (CIL) and its subsidiaries is the major producer
of coal 431.27 million tonnes of coal was been produced by Coal India Ltd. and its
subsidiaries during 2009-10 as against the production of 403.73 million tonnes in the
year 2008-09 showing a growth of 6.82%. The raw coal production and its growth have
shown in appendix A.1. If we do the regression analysis on the growth of the total coal
production from year 1998-99 to 2009-10, we find that on an average there is an
increment of about 18 Million tonnes of coal production during the time span (Appendix
A.2).
Figure 3.2.1 Figure 3.2.2
Source of input data: Coal India Limited
Figure 3.2.1: Regression analysis of total increment in the coal production during 10th plan period
Figure 3.2.2: Regression analysis of total increment in the coal production during 11th plan (First 3 years only of the plan period)
The installed capacity addition of thermal power plants, proposed in the 11th planning
commission report, is based on the “Report of the Working Group on Coal & Lignite”. Let
us compare and contrast projection of the report and its ground reality. The report says
that
• The coal production is envisaged to reach 680 mt in the terminal year 2011-12 of
the XI Plan from the anticipated production of 432.50 mt in 2006-07 implying a
CAGR of 9.47%. The incremental production in the XI Plan is envisaged to be
247.50 mt as against 104.71 mt likely to be in the X Plan.
y = 17.74x + 271.78R² = 0.9985
0
100
200
300
400
0 2 4 6
Pro
du
ctio
n
Time span
10th plan period
y = 25.9x + 353.03R² = 0.9986
370
380
390
400
410
420
430
440
0 1 2 3 4
Pro
du
ctio
n
Time span
11th plan period
26
• The incremental production envisaged in the XI Plan from CIL is 156.70 mt, SCCL
3.30 mt, and captive blocks 86.53 mt.
To supply the fuel (coal), to the capacity added, it was projected that cumulative
increment of 247.50 Mt of coal production must be done. Figure 3.2.1 and 3.2.2 are the
regression analysis of the increment in the coal production during 10th and 11th (first
three years of the plan period only) plan respectively. It is evident from the regression
that during 10th plan period there was an average annual increment of about 18 Million
tonnes of coal. During the 11th plan period the pace is although high, of about 26 million
tonnes per year, but is far way behind the required one. With this rate we can add at
most 130 Million tonnes which is only 80% of the production required from the CIL in
the working paper. The story is similar for other coal producing agency.
It is having clear implication that even though if we could able to achieve the target of
capacity addition there must be shortage of fuel because of non-availability of coal.
3.3 Supply and demand of coal for Power Sector: The overall requirement of coal for all sectors is
projected to be 916.818 Million tonnes by Coal India Limited (cumulative for all sectors)
at the end of 2016-17. The gap between the projected demand of 916.818 Million Tonnes
and the projected domestic availability of 647.5 Million Tonnes works out to 269.32
Million Tonnes in 2016-17. This requirement would need to be met from imports.
Further increasing production from captive blocks to bridge the gap also remains as a
distinct possibility.
In 11th plan upto 2011-12 the projected demand of coal is estimated to be 731.10 Million
Tonnes, the demand of power sector utilities is 483 Million Tonnes, which is about 66%.
Including the demand for captive power plant of 57.06 Million Tonnes, the share of
power sector in the projected demand, works out to about 74%. The demand of steel
sector at 68.5 Million Tonnes forms 9.4% of the projected demand. The share of cement
sector is 4.4% and that of sponge iron sector is about 4%. The balance 8.2% is for bricks
and others sectors.
As per the projection by Central Electricity Authority (CEA), capacity addition in 11th
Plan in Coal-based projects and normative requirement of coal & status of coal linkage
has given in appendix A.3.
The Detailed coal requirement vis-à-vis capacity addition during coming years, as
projected by CEA/CIL, and Demand-Supply Gap Analysis, has shown in Table 3.3.1.
27
Table 3.3.1 (Gap between Demand & Supply of Coal )
CIL Projection (In Million Tonnes)
Particular 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Production 460.002 486.65 514.75 542.75 575.25 609 647.5
Supply Through E-auction
46 48.665 51.475 54.275 57.525 60.9 64.75
Committed Demand on CIL sources excluding E-Auction and requirement a/c TPP coming up beyond 1.4.2009
457.544 457.544 457.544 457.544 457.544 457.544 457.544
Availability from CIL sources for TPPs coming up after 1.4.2009
-43.542 -19.559 5.731 30.931 60.181 90.556 125.206
Commitment a/c TPP coming after 1.4.2009
81.788 298.483 394.524 394.524 394.524 394.524 394.524
Net coal balance/availability for further issuance of LoA
-125.33 -318.042 -388.793 -363.593 -334.34 303.968 -269.32
Source: Coal India limited Published on 06 April 2010
3.4 Bridging the gap: Coal based thermal power plant, accounts for more than 50% of the
total installed power generation capacity, while coal based power plants account for
about 80% of domestic consumption of coal. Thus, it remains a dominant fuel for the
Indian power sector and is expected to remain so in the near future. Growth of an
economy is a function of power consumed. To meet our power requirement we are very
much dependent on the availability of coal. It is evident from the projections that
domestic coal production is not sufficient to meet our requirement. Therefore, we have to
look at the options through which we can bridge this wide gap; some of the options and
issues involved have discussed below:
3.4.1 Coal import: We could meet our requirement through import; we are mainly importing
the coal from Indonesia, Australia and South Africa. However, this option is not as
simple as it seems, there are many issues associated with it, which have discussed
below in detail:
We are importing coal largely from Indonesia, and any local regulation or coal
policy is going to affect us. Indonesian government is planning to put a cap on the
28
total export; they are planning to have a maximum export up-to 150 Million
tonnes. In a speech on “Coal supply outlook in Indonesia”, Dr. Ir. Sukma Saleh
Hasibuan (Director, Ministry of Energy and Mineral Resources (MEMR), Indonesia)
expressed this concern. The coal production and supply projection shown by him
in the speech has shown in Appendix A.4. This will create shortage in global coal
market and put pressure on international coal prices. This is having severe
consequences in Indian context, Independent Power Producers (IPPs) who are
planning to rely on imported coal in long term, will look it as highly volatile
business which confront them with high price volatility and political risk. On
December 16, 2008, the Indonesian Parliament adopted a law on mineral and coal
mining (“New Mining Law”). The New Mining Law provides that existing contracts
will continue to be valid until their expiry, but that the terms of the existing
contracts must be modified within one year to make them comply with the New
Mining Law. However, the New Mining Law is unclear as to which of its provisions
will require amendments to the terms of existing contracts to bring those
contracts into compliance with the New Mining Law. The existing holders of
contracts may be given five years to comply with such obligation. However, the
New Mining Law does not provide any details on when these government
regulations will be issued or what specific obligations will be imposed. The legal
uncertainty raised by the adoption and implementation of the New Mining Law
has increased the risks, and may increase the costs, involved in our sourcing
Indonesian coal. We cannot rely on importing of coal because of such unseen able
events and unpredictable global political environment.
Global Pressure on acquiring coal resource: Asian countries like China, Japan,
Kazakhstan, etc are also boosting their power generation capacity and the
problem of fuel is same for them. This will create a competition in acquiring the
major portion of world coal export or they might try to acquire the coalmines in
coal exporting country by going into long-term contracts. China recently signed a
MOU of $60 billion, with an Australian Coal major Resource House for a 30
million tonne coal supply deal. Thus, China is finalizing a 20-year contract to
receive high quality Australian Coal from a newly developed mining base called
First China, which is located in Western Australia State of Queensland. China is
now searching coal resources in the entire world. While Asia Pacific countries
such as Indonesia, Australia, Vietnam and Mongolia are its traditional coal import
sources, footprints of Chinese coal hunters are now left in almost all the
continentals. Russia, Canada, the US and South Africa have become China's
important coal trade partners. China is now consuming near 45 percent of the
global coal, and has accounted for over 20 percent of the world coal trade. The
said trend will further aggravate the pressure on coal prices.
29
Infrastructure: Although theoretically, coal could have imported in large quantities
to meet any domestic shortfall, problems with coal imports arise primarily because
of the inadequacy of handling facilities at ports and the lack of inland
transportation infrastructure (particularly railways) in India. To handle the large
quantity of the imported coal we have to think about the development of our other
related infrastructure like ports, transportation etc.
3.4.2 Diversify the portfolio of coal importing nations: We are importing coal from very few nations
and mainly from Indonesia. This will lead to the risk of high price volatility and political
risk. The risk could be reduced if we could diversify our portfolio of coal exporting
countries. For example, we are almost neglecting the Australia as a source of importing
coal. Figure shown below depict the decline in Australia’s share in coal import.
In these circumstances, we have to develop our relations with some other countries.
Australia can be the option. An Australian trade commission delegation, which recently
came to India, presented a paper to the coal ministry saying reducing the import duty of
thermal coal and keeping the zero import duty on coking coal intact would not only
strengthen bilateral ties but would also enhance the availability of affordable inputs for
two Indian infrastructure industry-power and steel. The trade commission pointed out
that coking coal import, which was 12 million tonne in 2006-07 from Australia, would
touch 18-20 mt in 2010-2011 and 25 mt by 2012, taking into account India’s steel
capacity addition. While Australia has its share only in India’s coking coal space,
Indonesia commands the thermal coal space. Australia wants to make an entry into the
thermal coal space, since imports of thermal coal are likely to go up13. However, political
(policy wise) uncertainty will always be there for example recently Australian govt has
put Henry Tax on the exported coal, making the coal prices sourer for the importing
nations. The similar uncertainty/risk is associated with every coal-exporting nation
because of their internal policies. Hence, it will be wise to have tie-up with as many as
13
http://www.coalspot.com/news-detail.php?nid=908
China’s coal import is
growing and export is
decreasing. Similarly,
Indonesian govt. is
planning to put cap of
150 Million Tonnes on
the net export.
Source: Barlow Jonker
30
coal exporting countries as possible to diversify the risk. The main point to be made is
that, we should not concentrate on any one or two nation for our coal requirement but
to include more countries in our portfolio from where we could tie up long-term linkages.
3.4.3 Overseas mining: Coal supply to meet our energy requirement can be fulfilled by
acquiring mines other countries. CIL has formed a subsidiary, Coal Videsh Limited
(CVL), to acquire coal blocks in a number of countries including Indonesia, South Africa
and Australia. Coal produced by CVL will be channelled into India to meet domestic
demand in future. Private companies like Tata, Adani Power limited and GVK have
acquired the coalmines mainly in Indonesia and some in Australia. IPPs are reluctant to
acquire overseas mining right because of the volatility of business and risk associated
with country specific policies, which are keep changes with time, such as imposition of
Henry Tax by Australian govt. and introduction of New Mining law, by Indonesian govt.
3.4.4 Captive Mining: The issue of demand supply gap could be resolve through encouraging
captive mining. A major constraint in ramping up production is the failure of companies
to develop captive coal blocks allotted to them by the coal ministry. Power sector has, so
far been allotted over 100 captive coalmines. Except 5-6 of them, none has come up so
far14. For Indian coal companies, project planning, approval and commissioning make
for a protracted process, involving a multiplicity of clearances at various levels: the
Boards of the companies concerned, various Ministries, the Planning Commission, and
other Government bodies. Estimates suggest that there are over 30 separate clearances,
including environmental clearances, required before Government approves a coal-mining
project. This leads to enormous delays, at times years, at the approval stage itself. If
captive mining will supercharge its pace, the net production of the coal in the country
will certainly increase and this will reduce the burden of CIL to meet the coal
requirement.
We have abundant coal reserve, according to an estimate our coal reserve will last for
more 150 years, but the problem is in mining. For this government have to encourage
the captive mining and have to look for collaboration with technologically advanced
countries for technology transfer in mining.
3.4.5 Private mining: As the captive mining projects of private sector players have not yielded
the desired results, CIL has recently proposed that these players be allowed to produce
coal even before their main projects are commissioned. Further, CIL has offered to buy
coal from private players at prices to be decided by a committee formed by CIL and the
MoC. To overcome the problem of finance or availability of requisite skills outside the
domain of the existing Indian coal companies, the GoI has allowed an associate
14
Business Standard
31
company of an end-user company to undertake captive coal mining if the end user
company holds at least 26% equity in the associate company. The GoI has also allowed
private mining in cases where a holding company has an equity stake of at least 26% in
both the end-user company and the coal mining company. Additionally, the GoI has
permitted consortium mining for captive purposes, where a number of end-users can
come together for mining coal.
3.4.6 Increasing the thermal efficiency of power plants: The possible option to curb the widening
gap between demand & supply is, to increase the thermal efficiency of the thermal power
plants. Currently, we are in practice of mixing our low quality coal with high quality
imported coal to increase the overall thermal efficiency. There is scope to invest in R & D
to come with the technology to produce more unit of electricity from per unit of the coal
consumed. The government must have to seek collaboration with developed nations for
technology transfer in thermal power generation. This will help us to meet our energy
requirement from the domestically available coal in long run.
3.4.7 Law and order: India’s major coal reserves lie in the ‘red’ belt or the Naxal-affected
regions of the country. Power plants fuelled by coal blocks in these regions face issues
like irregular supply. Coal India Ltd (CIL), officials had earlier admitted to transportation
problems from coal mines in the Naxal-affected regions of Jharkhand, Orissa,
Maharashtra, Madhya Pradesh and Chhattisgarh. Although, at the first sight, Law and
order problem is not at all seems to be linked with the coal supply but really it is. The
supply from these regions could boost if government pays proper attention to
maintaining law and order in these area and the sense of safety to the person associated
with the coal mining.
3.5 Key Challenges facing the coal industry: The critical issues facing the coal industry are
highlighted below:
Lack of Investments in Mining: In spite of the economic liberalization of 1991 the
mining sector has not seen major investments. This is possibly due to the problems
such as government policy, land acquisition, development of infrastructure,
transportation system, social engineering and community development involved in
major green field site projects. There is a need to re-look at the total management
solution for attracting investment in new mines. The solution has to lead to the
creation of joint venture institutions with central government, state government and
private sector as partners.
The facilitation for the project through provision of land, infrastructural development,
community development etc, can be done by the government agencies whereas the
investment in the mine and the associated technological inputs can come from the
private sector. In addition, the private sector must have the freedom to run the mine
32
in a cost effective manner. This may be a long term solution for future mines in India
and it will have unique opportunities for both the government and private sector to
work together for India's development.
Historically, opencast mining has been favored over underground mining. This has
led to land degradation, environmental pollution and reduced quality of coal as it
tends to get mixed with other matter.
Further, coal mining in India is associated with poor employee productivity. The
output per miner per annum in India varies from 150 to 2,650 tonnes compared to
an average of around 12,000 tonnes in the USA and Australia.
India has still not been able to develop a comprehensive solution to deal with the fly
ash generated at coal power stations through use of Indian coal.
Clean coal technologies, such as Integrated Gasification Combined Cycle, where the
coal is converted to gas, are available, but these are expensive and need modification
to suit Indian coal specifications.
Challenges in Jharia: Jharia Coal field in Jharkhand is the richest coal bearing area
in India, which contains large quantities of high-grade coking coal. However, this
area also contains a large number of mine fires, which have been burning for several
decades. A major challenge to the mining community is that of tackling fires that
have engulfed large and densely populated coal bearing areas. A technological, cost
effective, safe and minimum disturbance solution to this problem has to be found.
3.6 Key Reforms Measures Required15: The vision for coal mining industry should be to come
out with an innovative and comprehensive action plan for providing effective solutions
and their progressive implementation. This will involve innovation and research in
satellite based remote sensing, robotics, mining equipment, mining operation,
extraction, beneficiation, processing and transportation.
The task of transformation of the coal sector is formidable given the size of investment
requirement and the level of political interference that is expected during such process.
The following efforts can become the cornerstones of reform in the sector:
3.6.1 Policy and Regulatory Framework: The coal industry in India has traditionally been
characterized by state monopoly, lack of independent regulation and lack of
transparency in tariff determination. The Government has now realized that a high
growth rate in domestic production of coal could not been sustained without carrying
15 http://www.indiacore.com/coal.html
33
out structural reform and introduction of competition through participation of the
private sector.
In this regard, the Government has taken the following measures:
• Distancing of the Government from price determination of all grades of coal
• Opening of captive coal mining for power, iron and steel, and cement to private
investment
• Foreign investment in Indian companies taking up coal mining for captive use has
been permitted.
• The allocation of coal blocks are to be done on the basis of competitive bidding
(Proposal stage)
• Allowing State Government companies or undertakings to carry out mining of coal (or
lignite) reserves (either by opencast or underground method) anywhere in the country
• Reduction in customs duty on coal imports to 5 percent (currently planning to remove
the custom duty at all)
•Downsizing of the budgetary support to the national coal industry
3.6.2 Deregulation of the coal sector: Deregulation and opening of the sector to private
participation will spur state owned Coal India Limited (CIL) to improve performance, and
help attract investments to upgrade existing mines and open new ones in the next five to
seven years. Recognizing this, Government has now decided to offer access to state-
owned mining blocks to investors. Simultaneously, Coal India is being encouraged to
further identify coal blocks wherefrom coal extraction will be commercially viable.
3.6.3 Independent Regulatory body: An independent Regulatory body to govern investment and
operation in the sector is required. Such a body will help create a level playing field and
will allow the Government to distance itself from activities like allocation of blocks,
approval for mines, etc. The body can also be expected to introduce competitive price
regulation.
3.6.4 Improvement in operational efficiency of the coal companies: Coal India is in need of an
organizational transformation to gradually align its operating costs to international
standards. Mining costs of CIL are at least 35 percent higher than that of the leading
coal exporting countries such as, Australia, Indonesia, and South Africa. The
productivity should increase from 0.5 tonnes per man-year to 5 tonnes per man-year in
underground coal mines using long wall mining and from 15 tonnes per man-year to 30
tonnes per man-year in open cast mines. To improve productivity, Coal India will need to
invest in new technologies, improve processes in planning and execution of projects, and
34
institutionalize a comprehensive risk management framework. State of the art
equipment for open cast mines and long wall mining system are required. More thrust
should be given to safety for evolving accident free mining.
3.6.5 Strengthening of logistics in coal distribution: In India, the logistics infrastructure such as
ports and railways are overburdened and costly and act as bottlenecks in development
of free market. Privatization of ports may bring the needed efficiencies and capacities. In
addition, capacity addition by the Indian Railways is necessary to increase freight
capacity from the coal producing regions to demand centers in the northern and central
parts of the country. On the Indian rail network, freight trains get a lower priority than
passenger trains, a problem that promotes delays and inefficiency. Special freight
corridors would raise speeds, cut costs, and increase the system’s reliability.
3.6.6 Investment in R & D: Work is required on clean coal technology to prevent the global
warming and environmental pollution effects. For a long time there has been a talk
about integrated gasification and combined cycle technology. Organizations like NTPC,
BHEL and CSIR laboratories should work on this project. Coal India and other
producers should help in this project by contributing in beneficiation and washing of the
coal input. There should be a time bound programme for getting the results from this
project. These results will have far reaching implications on the choice of technology for
all future mining applications.
3.6.7 Focusing on technology for future: India’s numerous technology research institutions, are
working on energy related R&D. However, there is a possibility that they are operating in
a fragmented fashion. The Government may get improved recoveries on its investment
by concentrating on few important technology areas. To start with, focus may be applied
for tighter emission standards and development of technologies for extraction of
methane from coal deposits.
All mining operations today involve continuous use of explosives, thereby generating
high noise level, vibrations and shocks and very high level of dust pollution. This also
takes away very large area as explosive safety zone and environment safety zone.
Alternative technologies for using high power laser system for safe, pollution free and
precision mining need to be evolved.
3.6.8 Information Technology for the Mining Industry: India has a unique blend of small and large-
scale mining operations. There is a need for assimilating the advances in Information &
Communication technologies into mining operations for technological up gradation.
Experiences from the oil & gas exploration where most advanced ICT have been
successfully used will be useful in the mining industry as well. Many times the oil & gas
industry has given the thrust to ICT out of necessity– 3D imaging & visualization and
35
networking of large scale super computers. Indian mining industry could further
modernize by using software for an integrated data management, analysis & 3D
geological modeling, 3D plant design and advanced real time control & monitoring
systems. Application of Information Technology should lead to robotic mining for
improving the precision, safety and overall yield from mining.
In addition to the above, the following measures, which have accepted in principle, are
awaiting implementation:
• Freeing the sector from controls on distribution
• Establishment of a regulatory authority to resolve price disputes between producer and
consumers of coal
• Granting of infrastructure status to coal sector
• Allowing public sector enterprises for joint venture projects with private sector.
3.7 World coal Reserve and Trends in Global production and consumption
The proven reserve of the coal worldw
the end of 2008, in the latest report of
Appendix A.5 is depicting the country wise proven coal reserve at the end of 2008.
Although coal deposits are widely distributed, 80 percent of the world’s recoverable
reserves are located in five regions: the United States (28.9 %), Russia (19 %), China
(13.9 %), Australia/New Zealand (9.3
taken together, produced 5090.2 Million tons of coal, representing 75.1 % of total world
coal production. By rank basis Anthracite and Bituminous coal accounts for 49%
total world reserve on tonnage basis
The coal consumption and production
2008 has shown in figure 3.7.2 and
Appendix A.6.
The trend shows that there is the spurt in the
Asia pacific region with coal production in the region is nearly double in the given period
while the consumption shoots
production in Asia Pacific is coming fr
consumption, India and China are in the head of the list, China alone had
share of 42% in the total world consumption
The reserve to production ratio
China’s reserves are going to deplete very soon. In that condition, to satisfy it domestic
requirement China will heavily rely on import of the coal and with the normal demand
36
.7 World coal Reserve and Trends in Global production and consumption
proven reserve of the coal worldwide has estimated to be 826001 Million Tones
in the latest report of “BP statistical review of world energy 2009”
Appendix A.5 is depicting the country wise proven coal reserve at the end of 2008.
Although coal deposits are widely distributed, 80 percent of the world’s recoverable
reserves are located in five regions: the United States (28.9 %), Russia (19 %), China
(13.9 %), Australia/New Zealand (9.3 %) and India (7.1 %). In 200
taken together, produced 5090.2 Million tons of coal, representing 75.1 % of total world
coal production. By rank basis Anthracite and Bituminous coal accounts for 49%
on tonnage basis and Sub-bituminous & lign
production trend over the period of ten years from 1998 to
.7.2 and 3.7.3 and the detail year wise trend
shows that there is the spurt in the coal production and coal consumption in
Asia pacific region with coal production in the region is nearly double in the given period
shoots up to more than double in the same period.
production in Asia Pacific is coming from China and Australia and India. In terms of
consumption, India and China are in the head of the list, China alone had
the total world consumption for year 2008.
The reserve to production ratio (R/P ratio) for china is only 41,
China’s reserves are going to deplete very soon. In that condition, to satisfy it domestic
requirement China will heavily rely on import of the coal and with the normal demand
Total
North
America
30%Total S. &
Cent.
America
2%
Total
Europe
33%
Total
Middle
East &
Africa
4%
Total Asia
Pacific
31%
Proven Coal Reserve
Source: BP statistical review of world energy 2009
.7 World coal Reserve and Trends in Global production and consumption
s estimated to be 826001 Million Tones at
“BP statistical review of world energy 2009”.
Appendix A.5 is depicting the country wise proven coal reserve at the end of 2008.
Although coal deposits are widely distributed, 80 percent of the world’s recoverable
reserves are located in five regions: the United States (28.9 %), Russia (19 %), China
%) and India (7.1 %). In 2008, those five regions,
taken together, produced 5090.2 Million tons of coal, representing 75.1 % of total world
coal production. By rank basis Anthracite and Bituminous coal accounts for 49% of
bituminous & lignite coal for other 51%.
of ten years from 1998 to
and the detail year wise trend has shown in
coal production and coal consumption in
Asia pacific region with coal production in the region is nearly double in the given period
up to more than double in the same period. Most of the
om China and Australia and India. In terms of
consumption, India and China are in the head of the list, China alone had a whopping
for china is only 41, which indicates that
China’s reserves are going to deplete very soon. In that condition, to satisfy it domestic
requirement China will heavily rely on import of the coal and with the normal demand-
Total S. &
America
Figure: 3.7.1
supply equation, it is evident that this will lead to
coal prices.
Figure 3.7.2(Coal Production)
Source: BP statistical review of world energy 2009
Currently, India is importing coal mainly from Indonesia, which is having only 0.5% of
the world proven coal reserve and it is having R/P ratio of 19, which is the big reason to
worry for India. India has to look for other coal
requirement. In these setting Australia is seems to be a promising solution. Australia is
having almost 10% of the world proven coal reserve and it has a potential to supply for a
longer horizon (R/P ratio for Australia is 190).
United States and Russian Federation constitute almost 50% of the total proven world
coal reserve. Production and con
domestic demand has not increased in the region, in fact, the consumption in North
America is declined during the period with Russian consumption increased marginally.
The production trend is more or less
reserve to production ratio is very high in
countries.
Implication of this could be, in long
these regions in terms of coal export, and Asian countries have to heavily dependent on
them for satisfying their coal demand.
major portion of the coal cost in near future since importing bulk coal from USA or from
Russia will not going to be
constraints.
582.3
19.7
529.5
6.8 91.6
606.9
23.3522.7
9.4
Total
North
America
Total S.
& Cent.
America
Total
Europe &
Eurasia
Total
Middle
East
1998 2008
37
it is evident that this will lead to abnormal hike in the international
Figure 3.7.3(Coal Consumption)
BP statistical review of world energy 2009
Currently, India is importing coal mainly from Indonesia, which is having only 0.5% of
ld proven coal reserve and it is having R/P ratio of 19, which is the big reason to
worry for India. India has to look for other coal-exporting nation to satisfy its
requirement. In these setting Australia is seems to be a promising solution. Australia is
having almost 10% of the world proven coal reserve and it has a potential to supply for a
longer horizon (R/P ratio for Australia is 190).
United States and Russian Federation constitute almost 50% of the total proven world
Production and consumption trends in these regions pointing that the
domestic demand has not increased in the region, in fact, the consumption in North
America is declined during the period with Russian consumption increased marginally.
The production trend is more or less remains replica of consumption.
reserve to production ratio is very high in these regions when compared with other
Implication of this could be, in long run, Asian countries will become a big market for
oal export, and Asian countries have to heavily dependent on
them for satisfying their coal demand. For India, Coal transportation cost will be the
major portion of the coal cost in near future since importing bulk coal from USA or from
ng to be an easy task for India because of the transportation cost
91.6
1031.8
110.3
2031.2
Total
Africa
Total
Asia
Pacific
648.8
29.5
437.0638.4
55.5
456.4
Total
North
America
Total S.
& Cent.
America
Total
Europe &
Eurasia
1998
hike in the international
(Coal Consumption)
Currently, India is importing coal mainly from Indonesia, which is having only 0.5% of
ld proven coal reserve and it is having R/P ratio of 19, which is the big reason to
exporting nation to satisfy its
requirement. In these setting Australia is seems to be a promising solution. Australia is
having almost 10% of the world proven coal reserve and it has a potential to supply for a
United States and Russian Federation constitute almost 50% of the total proven world
sumption trends in these regions pointing that the
domestic demand has not increased in the region, in fact, the consumption in North
America is declined during the period with Russian consumption increased marginally.
remains replica of consumption. Moreover, the
when compared with other
Asian countries will become a big market for
oal export, and Asian countries have to heavily dependent on
For India, Coal transportation cost will be the
major portion of the coal cost in near future since importing bulk coal from USA or from
easy task for India because of the transportation cost
0.6 132.0
978.9
456.4
0.5
143.4
2030.7
Total
Europe &
Eurasia
Total
Middle
East
Total
Africa
Total
Asia
Pacific
1998 2008
38
4. Transmission
India has endowed with abundant natural energy resources to generate electric power.
These resources, however, are largely concentrated in certain pockets. About 90% of coal
reserves are to be found mainly in five States of Eastern & Central India, viz. Orissa,
Jharkhand, West Bengal, Chhattisgarh & Madhya Pradesh. Renewable hydro-power
potential of about 150,000 MW is available mainly in the hilly belt of the Northern and
North-Eastern regions of India. Further, a number of nuclear power plants and coastal
location coal based power plants with large generation capacities are coming-up at
diverse places. This uneven geographical distribution of exploitable energy resources
(coal and hydro potential in the country) necessitated large scale transportation of coal
across the State boundaries. A decision was taken in the early sixties to create regional
electricity grids as basic units for power planning and operations of the electric power
system. In the seventies, the regional grids were in position and advantages of sharing
generating capacity between the States, and the inter-connected operation was being
obtained. In the eighties, with the commissioning of the Regional power stations by
Central sector Generating Companies (NTPC, NHPC) and construction of EHV
transmission lines by them transcending state boundaries, the development of regional
grids was further accelerated.
4.1. Growth in transmission segment16: By the end of 10th Plan the total length of transmission
lines in the country comprised about 1.98 lakh ckt kms. During the first two fiscal years
of the 11th plan a total of about 23239 ckt km of lines have already been commissioned.
Similarly the substation transformation capacity has gone up from about 2.62 lakh MVA
at the end of the 10th Plan to 3.06 lakh MVA at the end of fiscal 2009. Figure 4.1.1(a)
and Figure 4.1.1(b) are showing the growth in the transmission segment over the five-
year plan periods.
The focus of transmission system development is to provide adequate inter-regional and
intra-regional transmission capacity so as to consolidate and strengthen the national
grid network towards a strong all-India grid. The Government of India’s (GoI’s)
transmission perspective plans focus on the creation of a national grid in a phased
manner by adding over 60,000 ckm of transmission network by 2012. It is intended that
integrated grid will evacuate an additional 100,000 MW by the year 2012 and carry 60%
of the power generated in the country. The existing inter-regional power transfer
capacity is to be enhanced to 30,000 MW by fiscal 2012 through creation of
“Transmission Super Highways”.
16
http://recindia.nic.in/download/ar2008-09.pdf
Figure 4.1.1(a)
Figure 4.1.1(a): Growth of 400kV Transmission line (in CKM) and substation (in MVA)
Figure 4.1.1(b): Growth of 200kV Transmission line (in CKM) and substation (in MVA)
Apart from the 400 kV and 200 kV transmission line and substations, new
have been taken to introduce Extr
(HVDC) system into the transmission sector. As on Jan’10 we have
transmission line with substation of capacity 4500 MVA. For HVDC we have 7443
of 500kV DC link with substation capacity of 8700 MVA.
With the support of Asian Development Bank (ADB), Power Grid Corporation of India
Ltd. (PGCIL) is implementing
Region to Northern Region (Agra). This shall be the first
having the largest power carrying
than 2000 Kms.
765kV Extra High Voltage level has already been
In order to further meet the long
environmental considerations, development
1200kV UHVAC system has envisaged.
available for 1200kV AC system
available commercially worldwide. POWERGRID has taken
out R&D in this area to develop the 1200kV system indigenously. A 1200kV
Station along with a 1200kV test line is being
Pradesh (Western Region) of POWERGRID, as a collaborative effort with
manufacturers, for indigenous development of
0
50000
100000
150000
200000
250000
*11th plan upto Jan'10
39
Figure 4.1.1(b)
: Growth of 400kV Transmission line (in CKM) and substation (in MVA)
Growth of 200kV Transmission line (in CKM) and substation (in MVA)
Apart from the 400 kV and 200 kV transmission line and substations, new
introduce Extra-high voltage (EHV) and High Voltage Direct Current
C) system into the transmission sector. As on Jan’10 we have
transmission line with substation of capacity 4500 MVA. For HVDC we have 7443
ubstation capacity of 8700 MVA.
With the support of Asian Development Bank (ADB), Power Grid Corporation of India
Ltd. (PGCIL) is implementing +/-800kV, 6000 MW HVDC Bi-pole Line from North Eastern
Northern Region (Agra). This shall be the first of its kind
having the largest power carrying capacity and transmitting power over distance more
765kV Extra High Voltage level has already been introduced in the country in Oct’2007.
meet the long-term power transfer requirement
environmental considerations, development of an overlaying Super Grid comprising
s envisaged. At present, there are no standardized parameters
available for 1200kV AC system and equipment at this voltage level are also not
commercially worldwide. POWERGRID has taken leadership initiative to carry
develop the 1200kV system indigenously. A 1200kV
Station along with a 1200kV test line is being established at Bina substation in Madhya
Region) of POWERGRID, as a collaborative effort with
manufacturers, for indigenous development of 1200kV equipment in India.
MVA
CKM
0
50000
100000
150000
200000
250000
300000
350000
(b)
Apart from the 400 kV and 200 kV transmission line and substations, new initiatives
high voltage (EHV) and High Voltage Direct Current
C) system into the transmission sector. As on Jan’10 we have 3372 ckm of 765 kV
transmission line with substation of capacity 4500 MVA. For HVDC we have 7443 ckm
With the support of Asian Development Bank (ADB), Power Grid Corporation of India
pole Line from North Eastern
of its kind (+/-800kV HVDC line)
capacity and transmitting power over distance more
introduced in the country in Oct’2007.
erm power transfer requirement, and to take care of
of an overlaying Super Grid comprising
standardized parameters
pment at this voltage level are also not
leadership initiative to carry
develop the 1200kV system indigenously. A 1200kV UHVAC Test
stablished at Bina substation in Madhya
Region) of POWERGRID, as a collaborative effort with equipment
1200kV equipment in India.
MVA
CKM
40
4.2 Development of National Grid: The primary energy resources in India are concentrated in
certain geographical locations. This lead to asymmetry of power generation in all
territory in India and hence resulted in the problem of load balancing, some parts
having excess supply and others are in deficit. This has necessitated the formation of a
National Power Grid to fulfill the following objectives:
• Enable transfer of power from power surplus regions to deficit regions.
• Enable optimal development and utilization of coal and hydro resources, in the overall
interest of the nation.
• Improve economy, reliability and quality of power supply.
At present, the country is having five regional grids, namely, Northern region, North-
Eastern region, Southern region, Eastern region and western region. The intra-state
power transfer capability is shown in Appendix A.1
PGCIL is playing an important role for development of National Grid. In line with this
plan, various inter-regional transmission schemes have been implemented/ are under
implementation/ planned in the country to enhance the interregional power transfer
capacity of National Grid to more than 37,000 MW by the year 2012. Establishment of
National Grid is also facilitating transfer of short term surplus power from anywhere to
anywhere in the country from generation under State and Private sector as well.
4.3 11th Plan targets and achievements: To evacuate the additional power generated planned
during 11th plan, and to strengthen the transmission network, the planning commission
has targeted to have nearly 80000 ckm of transmission lines. Table 4.3.1 is showing the
year wise transmission line addition programme.
Table 4.3.1
Planned Transmission Line addition in 11th plan (all figures in ckm)
Particular 2007-08 2008-09 2009-10 2010-11 2011-12
765 kV line 160 653 632 501 1345
+/- 500kV HVDC line 0 1250 280 0 0
400 kV line 6907 8025 9548 14750 12948
200 kV line 5448 6493 7303 7548 2280.5
Total 12515 16421 17763 22799 16573.5
Source: CEA
But, the actual work done durin
April 2010, only 39285 ckm of transmission line have strung, which is
total target. Table 4.3.2 is showing the actual work done during the last three years of
11th plan and Figure 4.3.3 is showing the comparision of target and actual work done
during the last three years.
Actual Transmission Line addition in 11
Particular
765 kV line
+/- 500kV HVDC line
400 kV line
200 kV line
Total
Source: Infraline
Plan
765 kV line 160
+/- 500kV HVDC line 0
400 kV line 6907
200 kV line 5448
0
2000
4000
6000
8000
10000
12000
41
But, the actual work done during the years is not in line with the planned target. Up to
April 2010, only 39285 ckm of transmission line have strung, which is
.3.2 is showing the actual work done during the last three years of
.3.3 is showing the comparision of target and actual work done
Table 4.3.2
Transmission Line addition in 11th plan (all figures in ckm)
2007-08 2008-09 2009-10
370 564 445
120 1180 280
6947 6827 7857
4160 4171 5139
11597 12742 13721
Figure 4.3.3
Actual Plan Actual
2007-08 2008-09
370 653 564
120 1250 1180
6947 8025 6827
4160 6493 4171
g the years is not in line with the planned target. Up to
April 2010, only 39285 ckm of transmission line have strung, which is only 45% of the
.3.2 is showing the actual work done during the last three years of
.3.3 is showing the comparision of target and actual work done
plan (all figures in ckm)
10 2010-11 (up to 30 April 2010)
97
122
455
551
1225
Plan Actual
2009-10
632 445
280 280
9548 7857
7303 5139
42
The growth plan for inter-regional power transfer capacity is shown in table 4.3.4, which
depicts that by the end of 11th plan we are planning to have the total inter-regional
capacity of 37150 MW. At present, we have established the level of 20800 MW of transfer
capacity, which is only 56% of the target capacity.
Table 4.3.4
Inter Regional Transmission Capacity growth plan
Year 2002 2005 2007 2010 2012
765 kV 0 0 1100 2200 9200
400 1000 2400 7800 11400 16400
HVDC bi-pole 0 2000 2500 2500 6500
HVDC b-t-b 2000 3000 3000 3000 3000
HVDC mono-pole 200 200 200 200 200
220 kV 1850 1850 1850 1850 1850
Total 5050 9450 16450 21150 37150
Source: http://www.cea.nic.in/power_systems/National_Electricity_Plan/Chapter_1_Introduction.pdf
4.4 Funds requirement in Transmission Segment: In order to meet the projected requirement for
additional power generation capacity of 100,000 MW by 2012, the Ministry of Power
estimates that the investment requirement for the inter-state transmission network will
be Rs. 710 Billion. A significant proportion of this (Rs.500 Billion) is expected to be
undertaken by the Power Grid Corporation of India Ltd. (POWERGRID), the Central
Transmission Utility (CTU). The remainder (Rs.210 Billion) is expected to come from by
private investors.
4.5 Sources of fund: The following are the major sources of fund:
• Asian Development Bank (ADB)
• World Bank
� International Finance Corporation (IFC)
� International Bank for Reconstruction & Development (IBRD)
� Multilateral Investment Guarantee Agency (MIGA)
• India Infrastructure Finance Corporation Ltd. (IIFCL)
• Power Finance Corporation
� Consortium Lending Group
� Business Development Associates
� Equity financing
• Commercial Banks
43
• Private Equity funds
• Private Investor
• Domestic Bond market
• Domestic term lending institutes
4.6 Funding available and sources of fund for PGCIL: Towards achieving the targeted investment
programme of Rs. 55,000 Crore for XI Plan for providing matching transmission system
for generation capacity addition in Central sector and other generation projects for
which transmission system is required to be built by POWERGRID, significant progress
has been made during FY 2008-09. Out of this, investment of about Rs. 15,000 Crore
has already been made during the initial 2 years period of the Plan, an achievement of
about 27% of plan outlay. For the year 2009- 10, an outlay of about Rs. 11,500 Crore
has been kept for POWERGRID and balance about Rs. 28,500 Crore shall be utilized in
the last 2 years period of XI Plan. Loan agreement for USD 400 Million from The World
Bank has been signed in Jan’09 and loan became effective from 30th March’09. Further,
loan agreement for USD 200 Million from ADB has been signed in March’09. In addition,
The World Bank has also agreed for another loan of USD 1 Billion to POWERGRID, for
which preparatory and appraisal missions were deputed by the Bank in Feb.’09 and
May’09 respectively. Loan negotiation was been expected to take place in 2nd quarter of
FY 2009-10. Thus, till date, around 70% of total loan requirement for XI Plan has
already been tied-up or identified and balance shall be raised on year-to-year basis as
per requirement. Besides, a proposal for loan assistance of USD 1 Billion from ADB17
had been submit to Ministry of Finance in Feb.’09. ADB has agreed to consider this
assistance under ADB lending programme for 2010-11. 4.7 Private Player in the league
4.7.1 Powerlink Transmission Limited: Powerlink Transmission Ltd. is the pioneering example
of the Public Private Partnership. It is a joint venture between Tata power and PGCIL
with 51:49 stakes resp. Powerlinks transmits power from the 1,020 MW Tala Hydro
Electric Power Project in Bhutan and surplus power from the Eastern/north-eastern
region of India through its transmission lines between Siliguri (West Bengal) and
Mandola (Uttar Pradesh), spanning a distance of 1,166 kms. With a total investment of
Rs. 1,545 crores, the project, consisting of 440 kV double-circuit transmission lines, was
completed within the scheduled time frame and cost estimates.
4.7.2 Reliance Power Transmission Limited: Reliance Power Transmission Limited (RPTL), a
wholly owned subsidiary of Reliance Infrastructure Limited (RInfra), has been qualified
for 3 transmission projects- North Karanpur, Talcher-II and East-North interconnection.
The three projects are worth Rs56.5bn out of which North Karanpur is for Rs35bn,
17
Power-grid Corporation India Ltd. Annual report 2008-09
44
Talcher II for Rs12bn and East-North Interconnection for Rs9.5 billion18. The qualifying
for three transmission projects being undertaken for the first time through the
competitive bidding guidelines issued by Govt. of India.
Earlier, RPTL has bags the WRSSS II transmission project initiated by the nodal agency
POWERGRID and awarded the project of construction of 1500 kilometers transmission
line. This has envisaged the Company as the first ever private transmission utility to
build these first ever 100% privately owned inter-state transmission projects in the
country, which would, on completion facilitate the smooth flow of surplus power in
Eastern and Northern Regions of the Country to Western Region by the end of year
2010.
4.7.3 Infrastructure Leasing and Financial Services (IL&FS): On January 2009, The Public Sector
Power Grid Corporation has announced that it has tied up with Infrastructure Leasing
and Financial Services to set up a joint venture company for taking up intra-
transmission and sub-transmission projects within India and abroad. Both the company
and IL&FS are having 50 per cent stake each in the company. The JV Company,
Powergrid IL&FS Transmission, will carry out these works for state power utilities taking
the public private partnership (PPP) route in India and with neighbouring countries
subject to bilateral agreement between the countries.
4.7.4 Tata Power Limited: The Company has about 1,100 Circuit Kms. of Transmission
Network in Mumbai Licensed Area, comprising 973 Circuit Kms. of 220 kV/110 kV
overhead lines and 124 Circuit Kms of 220 kV/110 kV underground cables. The
Company’s transmission system connects Trombay and the hydro generating stations to
17 receiving stations spread across the Mumbai Licensed Area, with major ones being
Carnac, Parel, Dharavi, Salsette and Borivali receiving stations. As per the Tata Power,
annual report 2008-09, Tata power is going to expand is transmission link through PPP
route in India. Power Transmission Limited, JV of PGCIL & Tata Power, is the pioneering
step toward this.
4.7.5 Adani Power Limited: Adani Power Ltd. announces to set up the longest private HVDC
link in India. This system will provide efficient transmission of power over a distance of
approximately 1000 kilometers from Mundra power plant in Gujarat to Mohindergarh in
Haryana. Adani Power Ltd awarded Siemens a contract to install a bipolar 500-kilovolt
High-Voltage Direct Current (HVDC) transmission system of 2500 MW capacity. The first
phase of the project is scheduled to be commissioned in February, 2011 and the second
phase in July, 2011. The investment estimate for the project is about Rs. 3000 crore.
The company had issued IPO to fund its ongoing and upcoming projects.
18
http://www.kseboa.org/news/736-reliance-power-transmission-limited-qualifies-for-3-transmission-projects.html
45
4.7.6 Torrent Power Limited: The subsidiary of the company, Torrent power Grid Limited
(TPGL) – a joint venture with PGCIL is constructing the 400 kV double circuit
transmission line from SUGEN to Pirana (Ahmadabad). The company also has installed
transmission line to connect SUGEN plant with substation of GETCO. Three 220 kV
double circuit lines from SUGEN to Surat and two 220 kV receiving substation are
completed by the TPGL to take of transmission of power to meet Surat requirement.
4.7.7 Gammon Infrastructure Projects limited: Gammon Infra is keen to undertake projects in
power sector. They have already bid for two transmission projects under the Rural
Electrification Corporation (REC) and two other transmission contracts to be awarded by
the Power Finance Corporation (PFC). Though they have not achieved any success in
getting those but still they are eyeing to grab the opportunity whenever it comes.
4.7.8 Kalpataru Power Transmission Ltd: Kalpataru Power Transmission Ltd, one of the leading
global EPC players in power T&D sector has secured an order worth over Rs. 319 Crores
from Chhattisgarh State Power Transmission Co. Limited.
4.8 Status of Transmission projects to be executed by Private Players in 11th plan
Target for transmission capacity addition in 11th plan is about 80000 ckm. Out of
which as of now only 7637 ckm of transmission line has being propose or executed by
the private sector, which is a meager portion of about 10% of the total planned target.
Sl No.
Project Company Length(ckm)
Target date
Remark
1 (+/-)500 KV Mundra - Mohindergarh Bipole
Adani Power Limited
1938 Apr'11
2 Mundra-Dehgam Adani Power Limited
868 jan'09 Commissioned on July'09
3 Mohindergarh HVDC - Mohindergarh HVPNL
Adani Power Limited
20 Apr'11
4 Mohindergarh HVDC – Bhiwani
Adani Power Limited
160 Apr'11
5 Kondapalli – Nunna Lanco 44 Aug'09 Commisssioned on Oct'09
6 LILO of RTPS- Guttur at Thorangallu JSW S/S
Jindal TPC 16 Nov'08 Commissioned on Aug'09
7 Jaigad - New Koyna JSW Energy 110 Jun'10 8 Jaigad - New Karad JSW Energy 220 Jun'10 Revised to
Dec'10 9 LILO of Rourkela- Raigarh at
Sterlite TPP Sterlite 25 Apr'10
10 Tiroda TPP- Warora Adani Power 400 Mar'11
46
Limited 11 Parli(PG)-Pune(PG) Reliance 646 Jul'10 12 Pune(PG)-Aurangabad(MSEB) Reliance 472 Jul'10 13 Parli(PG)-Solapur (PG) Reliance 272 Jul'10 14 Solapur(PG)-Kolhapur(MSEB) Reliance 438 Jul'10 15 LILO of Lonikhand(MSEB)-
Kalwa(MSEB) at Pune (PG) Reliance 3 Jul'10
16 LILO of Solapur(MSEB)- Karad(MSEB)at Solapur(PG)
Reliance 232 Jul'10
17 Rajgarh(PG)-Karamsad(GEB) Reliance 468 Jul'10 18 Limbdi(Chorania((GEB)-
Ramchodpura(Vadavi)(GEB) Reliance 206 Jul'10
19 Ranchodpura(Vadavi)(GEB)- Zerda(Kansari(GEB)
Reliance 280 Jul'10
20 Akhakol-Puna torrent Power 72 Apr'07 Commissioned on May'09
21 Akhakol-Bhatar torrent Power 136 Apr'07 Commissioned on May'09
22 Akhakol-Ved(Dabholi) torrent Power 52 Apr'07 Commissioned on Jun'09
23 Allain Duhangan-Panarsa- Nalagarh D/C
Malana Power Company Ltd
349 Jun'09 Revised to May'10
24 LILO of Allain Duhangan-Nalagarh at Chhaur
Malana Power Company Ltd
1 Sep'09 Revised to Apr'10
25 Budge Budge -Kosba CESC ltd 170 Aug'09 Commissioned on Feb'10
26 Sterlite TPP - Sterlite captive plant D/C
Sterlite 9 Jan'10 Commissioned on Mar'10
27 Budhil-Chamera-III Lanco 30 Mar'10 Source: Infraline
4.9 Outlook:
In late 2006, the power ministry decided to set up around 14 mega transmission
projects through private participation, on the lines of the ultra mega power project series
(See appendix A.2 for details of project announced). The plan involves development of
independent transmission lines on BOO basis where the bidder would be selected
through the tariff-based competitive bidding route. The transmission lines mainly
included evacuation systems associated with large power generation projects of NTPC
and Damodar Valley Corporation, apart from setting up transfer systems from power-
surplus to power-deficient regions. India's experience with private participation in power
transmission projects so far is limited. The only project yet awarded on 100 per cent
47
private equity basis is the Western Region System Strengthening Scheme-II that is being
developed by Anil Ambani’s Reliance Power Transmission Ltd. In terms of private equity
in a power transmission project, the very first project is the Tala power transmission
lines bring power to India from the 1,020-Mw Tala hydropower project in that country.
This 400 kV D/C line being operated on BOO basis is India's first instance of PPP in
power transmission. Clearly, in the coming years, the private sector will need to
contribute to the power transmission network, much like it has been doing to the
generation segment. By themselves, PGCIL and state transmission utilities would not be
able to fill up the infrastructure deficit. Going by the current evolution, private
participation could be in various forms—fully independent power transmission lines,
infrastructure developed in joint venture with PGCIL and that developed in joint venture
with state utilities. There is immense scope for private participation, offering scope for
all types of risk profiles of private transmission developers. It is also clear that the power
transmission sector in future will be a breeding ground for entrepreneurship, where
long-standing EPC contractors—KEC International, Larsen & Toubro, Kalpataru Power
Transmission, to name a few—could groom themselves into independent power
transmission companies. It is also imminent that modern-day entrepreneurs that have
taken on power generation in a big way—GMR Group, Lanco, GVK Group, Sterlite
Energy, Essar, JSW, etc—and existing private power utilities like Tata Power and
Reliance Infrastructure, will make a mark on the power transmission sector. Apart from
the 14-odd transmission projects that the Centre plans to build on BOO basis, it is also
learnt that private developers will be sought for setting up evacuation systems for the
ultra mega power project series. So far, four projects—Sasan, Mundra, Krishnapatnam
and Tilaiya—have been awarded and there are at least eight more on the anvil. The
Centre has proposed that while PGCIL would set up transmission infrastructure for the
first three projects—and it has already begun work—private participation will be sought
beginning from the fourth onwards. This gives a huge window of opportunity to private
developers. Just like the UMPP series brought in efficient technology (supercritical
parameters), one could look forward to similar efficiencies in the concomitant
transmission systems. Developing power generation projects along with transmission
infrastructure also makes private entrepreneurship more holistic. Besides, competition
amongst private players might also bring down wheeling charges, eventually bringing
down end-consumer power tariffs. Although private participation in power transmission
would materialize only in degrees, it is encouraging to see that a beginning has been
made, the delay notwithstanding. The Centre could do well by using the remaining years
of the XI Plan to fine-tune guidelines and bidding procedures, so that a fertile ground is
created for private power transmission systems to bear fruit from the XII Plan onwards.
48
5. A Study on Adani Power Limited
5.1 Background
The Adani Group was been founded in 1988 as a trading house and since its inception; the company has start setting its feet into many sectors, the main ones being Power, SEZ development, Ports, Oil and Gas exploration, etc. Adani power limited is a part of Adani group. Adani Enterprise Limited (“AEL”), is the flagship company of the Adani Group, with total revenues of Rs. 11,587.89 Crores for the fiscal year 2009. AEL was one of the largest traders of coal in India for the three years period ended March 31, 2008, with coal mining rights both in the international and domestic markets, and according to Central Electricity Regulatory Commission, for the three years period ended March 31, 2008, AEL was one of the largest power traders, by volume, in India. With the commissioning of power projects, the Adani Group will have vertically integrated in power sector value-chain through presence in related activities such as coal mining, coal trading, shipping, power generation, power transmission and power trading. Another Adani Group company, Mundra Port and Special Economic Zone Limited (“MPSEZL”), owns and operates one of the largest private sector commercial ports in India, a Special Economic Zone (“SEZ”) at Mundra and a railway line between Mundra and Adipur leading to strong synergies with their projects being set up in close vicinity. In addition, the Adani Group also has operations in other industries, including commodities trading, real estate development, agro processing and logistics.
The Company has successfully forayed into power generation business through its subsidiaries, Adani Power Ltd., Adani Power Maharashtra Ltd., Adani Power Rajasthan Ltd., Adani Power Dahej Ltd., Adani Power (Overseas) Ltd. and Mundra Power SEZ Ltd. in the states of Gujarat, Maharashtra and Rajasthan.
Adani Power Ltd was been incorporated in the year 1996. The Company became a private limited company on June 3, 2002. Thereafter, it was been converted into a public limited company on April 12, 2007. It is a part of the Adani Group, a leading business group in India. The Company was been promoted by Gautam S. Adani and Rajesh S. Adani, together with their relatives. In 2004, pursuant to internal restructuring amongst the promoters, the entire shareholding of the company was been transferred to Mundra Port and Special Economic Zone Ltd ('MPSEZL'). Subsequently, on May 29, 2006. MPSEZL transferred its entire shareholding in the company to Adani Enterprises Ltd (AEL). The Company is mainly involved in power-project development activity, which is developing, and will operate and maintain, power projects in India. It has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW. In addition, the company is also planning to develop two power projects with a combined installed capacity of 3,300 MW. The company intends to sell the power generated from these projects under a combination of long-term power purchase agreements to industrial and state-owned consumers and on merchant basis.
49
5.2 Company Profile
Promoter’s holding (As on 31 march 2010)19
• Foreign (Promoter & Group) - 3.2513%
• Indian (Promoter & Group)- 70.2484%
• Non Promoters (Institution)- 10.7239%
• Non Promoters (Non-Institution)-- 15.7764%
Subsidiaries
• Adani Power Ltd (100%)
• Adani Power Maharashtra Ltd (76.64%)
• Adani Power Dahej Ltd (100%)
• Adani Power Rajasthan Ltd (100%)
• Adani Power Overseas Ltd
• PT Adani Global, Indonesia – for coal mining in Indonesia
(Subsidiary of Adani Global Pte. Ltd., Singapore)
• PT Kapuas Coal Mining, Indonesia – for coal mining in Indonesia
(Subsidiary of Adani Global Pte. Ltd., Singapore)
• Adani Global Pte. Ltd., Singapore.
(Subsidiary of Adani Global Ltd., Mauritius)
• Parsa Kente Collieries Ltd.
• Adani Mining Pvt. Ltd.
Key persons
• Gautam S. Adani, Chairman
• Rajesh S. Adani, Managing Director
Key Company Highlights
• The company came out with an IPO in July 2009 to raise Rs. 3000 crores, which
was heavily subscribed 21 times.
• In the power sector, apart from generation the company has further ventured into
power trading, coal trading, Indonesian and Indian coal mining.
• It has made itself into a vertically integrated company with the above verticals
along with shipping.
• APL is executing 400 KV D/C transmission line of about 431 KM distance from
Mundra to Dehgam.
• It is also executing ±500 KV Bi-Pole HVDC transmission line of about 800 KM
distance from Mundra to Haryana for transmitting 2500 MW.
19
http://www.capitaline.com/user/framepage.asp?id=1
50
5.3 Power Projects Under Construction:
The Company is currently developing four thermal power projects through its said
subsidiaries, which are under various stages of development, with a combined installed
capacity of 6,600 MW. In addition, the group is also planning to develop two power
projects with a combined installed capacity of 3,300 MW at Dahej and Kawai. The group
has intended to sell the power generated from these projects under a combination of
long-term power purchase agreements to industrial and state-owned consumers and on
merchant basis. Details of the various power projects undertaken by the Company have
shown in table 5.2.1:
Mundra Phase I & II Power Project are having four sub-critical generation units of
330 MW each, with combined capacity of 1,320 MW. The boiler, turbine and
generator (“BTG”) package for Mundra I and II was been awarded to Sichuan
Machinery and Equipment Import & Export Company Limited and Kowa Company
Limited, respectively. The first 330 MW unit of Mundra Phase I and II Power
Project is already commissioned in Jan’10, and the second unit of Phase I on
Mar’10. The actual target commissioning date of these units, however, was Aug
2009 and Sept 2009 resp.
Mundra Phase III Power Project will have two super-critical generation units of
660 MW each, with combined capacity of 1,320 MW. The engineering,
procurement and construction (“EPC”) contract for Mundra III was been awarded
to SEPCO-III Electric Power Construction Corporation and Shandong Tiejun Electric
Power Engineering Company Limited. The first 660 MW unit of Mundra Phase III
Power Project has expected to commission by April 2011, and that the power
project will have fully commissioned by September 2011.
Mundra Phase IV Power Project will have three super-critical generation units of
660 MW each, with combined capacity of 1,980 MW. The EPC contract for Mundra
IV was been awarded to SEPCO-III Electric Power Construction Corporation and
Shandong Tiejun Electric Power Engineering Company Limited. The first 660 MW
unit of Mundra Phase IV Power Project has expected to commission by July 2011,
and that the power project will have fully commissioned by March 2012.
51
Table 5.2.1
Project Location Installed capacity
(MW)
Fuel Supply status
Estimated cost (Rs. Crore)
Expected commissioning
date
Off take arrangement
Mundra Phase 1
(Unit 1&2)
Gujarat 2X330 Coal supply agreement with
AEL
2280 Commissioned Long term PPA for 1000 MW entered with GUVNL
Mundra Phase 2
(Unit 3&4)
Gujarat 2X330 Coal supply agreement with AEL
2070 Unit 3: Feb’10 Unit 4: May’10
Mundra Phase 3
Gujarat 2X660 Coal supply agreement with AEL
5796 Unit 1: Apr’11 Unit 2: Sep’11
PPA for 1000 MW with
GUVNL for 25 yrs,
agreement to sell 221 MW as merchant power with
AEL Mundra Phase 4
Gujarat 3X660 Coal supply agreement with AEL; Coal linkages of 1366 MW recommended
8960 Unit 1: Jul’11 Unit 2: Nov’11 Unit 3: Mar’12
Long term PPA for 1424 MW entered
with UHBVNL and DHBVNL
Tiroda Power Project
(phase I)
Maharashtra 2X660 Captive mines allocated by
MoC for generating up to 1000 MW of
power; coal linkage of 1180
MW recommended
6560 Unit 1: May’11 Unit 2: Aug’11
Long term PPA for 1320 MA entered
with MSEDCL
Tiroda Power Project (phase
II)
Maharashtra 1X660 2730 Apr’12 -
Tiroda Power Project will have three super-critical generation units of 660 MW
each, with combined capacity of 1,980 MW. The BTG package for Tiroda was been
awarded to Sichuan Machinery and Equipment Import and Export Company
Limited. The first 660 MW unit of Tiroda Power Project has expected to
commission by May 2011, and that the power project will have fully commissioned
by April 2012. The Adani Power Maharashtra Limited (“APML”) will develop the
Tiroda Power Project, APML is 77.38% owned subsidiary of Adani Power limited.
The expected cost of the project has estimated to Rs 6560 and Rs. 2730 crores, for
Phase I and Phase II respectively.
52
5.4 Future Projects
1980 MW Thermal Coal based power project - Dahej, Gujarat- The project is been developed by the subsidiary Company, Adani Power Dahej Ltd. (APDL). The Dahej power project will utilize imported coal as primary fuel for its operations. The Company has also entered into long-term coal supply arrangements for importing coal for its Dahej power project. It is expected to have three super-critical generation units of 660 MW each, with combined capacity of 1,980 MW. The project has expected to have fully commission by June 2012. The total cost of the project is Rs 8881 crores with an expected debt equity ratio of 80:20.
1320 MW Thermal Coal based power project - Kawai, Rajasthan- The subsidiary Company, Adani Power Rajasthan Ltd. (APRL) is developing this project. The company has entered into a memorandum of understanding with the State Government of Rajasthan to use its best efforts to facilitate the provision of coal for such power project from the Government of India or other sources. The said power project shall have two super-critical generation units of 660 MW each, with combined capacity of 1,320 MW. The power project has expected to have fully commission by January 2012. The cost for the project has expected to be Rs 5889 crores that shall be financed in a debt equity ratio of 80:20.
5.5 Recent Developments
Feb 23, 2010: Adani to develop 1,320MW power project in Madhya Pradesh, India
Feb 15, 2010: Adani Power Receives LOI from Government of Madhya Pradesh on
Development Of 1,320MW Coal-Fired Power Plant
5.6 SWOT analysis of Adani Power Limited
STRENGTH:
1. Secured Fuel Supply: The Adani power is having secured fuel linkage for its on-going
projects. With India having the demand-supply gap in coal requirement, having fuel
linkages is one of the biggest advantages for Adani power ltd. Moreover, Adani group’s
past experience in coal trading will be having cutting-edge advantage over other
companies in the field. The Adani Group has coal mining rights in both the international
and domestic markets. PT Adani Global, a wholly owned subsidiary of AEL, has entered
into agreements with holders of long-term exploitation licenses to exclusively mine, coal
in Bunyu Island, Indonesia. In addition, they have also allocated two coal blocks in India
to mine coal for our Tiroda Power Project. Adani Shipping Pte Limited, Singapore, a
wholly owned subsidiary of AEL, has entered into a contract for the purchase of two
newly built capsize vessels with expected delivery by December 2010 for transportation
of coal from the Indonesian coalmines operated by AEL.
53
2. IPO Listing: The Company was come out with an IPO on July 2009 to raise Rs. 3000
crores, which was been subscribed heavily. With the IPO, company has ascertained to
meet its long-term financial requirement. An IPO, therefore, allows a company to tap a
wide pool of stock market investors to provide it with large volumes of capital for future
growth.
3. Long term Power off take arrangement: The Company has entered into power off-take
agreements with Gujarat Urja Vikas Nigam Limited (“GUVNL”), Uttar Haryana Bijli
Vitran Nigam Limited (“UHBVNL”), Dakshin Haryana Bijli Vitran Nigam Limited
(“DHBVNL”) and MSEDCL for its Mundra Power Projects and Tiroda Power Projects. Off-
take agreements generally provide that the consumer purchases power in pre-
determined quantities at fixed rates and surplus power, if any, may then be sold to other
consumers in the unregulated market. The power produced in excess of what is sold
under our Mundra Phase I and II Power Project, Mundra Phase IV Power Project, and
Tiroda Power Project off-take agreements will be sold on merchant basis. These
arrangements will allow the company to mitigate their off-take risk, while enabling them
to sell the residual power at market-determined rates.
4. Integrating power generation business with the installation of transmission lines: The Company is
vertically integrating itself in power business, with acquiring coalmines, erecting
transmission line for evacuating power, from their power station to the load center. The
first of such transmission lines from Mundra to Dahegham, Gandhinagar has already
been constructed. Having complete portfolio for power generation business, the company
has significantly diversified its risk and dependence on other utilities.
WEAKNESS:
1. No Operating History: The APL is having no significant history of operating the power
projects. Therefore, it is difficult to evaluate its future performance. If it will fail on any
ground, internal or external factor, it will not only hamper the growth of company but
also the confidence of investor in investing for the power projects being executed by the
private player.
2. High Leveraging risk: The company’s debt to equity ratio is almost tripled during the
period March ’08 to march’ 09. Moreover, for its Tiroda project, the project specific debt
to equity is planned to be 80:20. With such a high level of debt, the company is exposing
itself to a high risk of market fluctuation.
3. Nature of debt: The majority of company’s borrowings are subject to floating interest
rates, which exposes them to interest rate risk. Further, they do not currently enter into
any swap or interest rate hedging transactions in connection with their loan agreements
54
or other material agreements. Any increase in interest expense may have an adverse
effect on business prospects, financial condition and results of operations.
4. Dependency on thermal fuel sources: The Company is only focusing on coal based thermal
power projects may be because of its confidence in getting fuel supply from AEL.
However, if external environment changes, national political or foreign political, because
of any reason then the company find it difficult to take out required return on equity
and pay out the interest on the mammoth debts.
OPPORTUNITIES:
1. Power deficit in India: The India is having huge power deficit and is remained to continue
as per 11th plan. The government is looking for significant private participation to bridge
this gap. This created an immense opportunity for APL to establish itself in Indian power
business. The main thrust of capacity addition is put on through private participation;
therefore, government is willing to attract private players through subsidy, relaxation on
import duties on certain power equipment, tax holiday etc. It is a great time to reap out
all the benefits.
2. Ultra Mega Power Projects: The government has identified nine power projects as ultra
mega power projects (UMPP), which are been planned to be executed through private
participation.
3. Private Coal Mining: Although, Amendment 2000 bill is pending in parliament pertaining
to private coal mining, given the group’s exposure in coal mining ( AEL experience) there
are great opportunity for the company to establish itself as major private coal producer,
once the bill is passed. The government is also planning to go for captive mining through
private company; this further provides added opportunity to the company to set its feet
in this segment.
THREATS:
1. Global regulations: To meet the coal requirements for Mundra, AEL proposes to procure
coal from the mines in Bunyu Island, Indonesia. On December 16, 2008, the Indonesian
Parliament adopted a law on mineral and coal mining (“New Mining Law”). The New
Mining Law provides that existing contracts will continue to be valid until their expiry,
but that the terms of the existing contracts must be modified within one year to make
them comply with the New Mining Law. However, the New Mining Law is unclear as to
which of its provisions will require amendments to the terms of existing contracts to
bring those contracts into compliance with the New Mining Law. The existing holders of
contracts may be given five years to comply with such obligation. However, the New
Mining Law does not provide any details on when these government regulations will be
issued or what specific obligations will be imposed. The legal uncertainty raised by the
55
adoption and implementation of the New Mining Law has increased the risks, and may
increase the costs, involved in our sourcing Indonesian coal.
2. Long term Power Purchase Agreements: The profitability of company is largely a function of
their ability to manage costs during the terms of our PPAs and to operate power projects
at optimal levels. Failing which, under the PPAs obligation, the company is liable to
penalties and in certain specified cases, customers may also terminate such PPAs.
Moreover, if there is an industry wide increase in tariffs, the company will not be able to
renegotiate the terms of the PPAs to take advantage of the increased tariffs. In addition,
in the event of increase in operational costs, they not have the ability to reflect a
corresponding increase in tariffs. Therefore, the prices at which they supply power may
have little or no relationship with the costs incurred in generating power, which means
that company’s margins will fluctuate significantly.
3. Chinese made BTG equipments: Core equipment of all power plants under execution is of
Chinese origin, except MPP phase II, for which the core Boiler, Turbine and Generator
(BTG) order, has been placed with Kowa Company of Japan. Given the poor performance
record of accomplishment of Chinese power plant equipment in the country, the efficient
and smooth operation of the power plant could be a cause for concern. If the power
plant’s availability falls below 75%, penalty has been paid under PPA. In addition, power
plants with Chinese equipment work better with imported coal compared to domestic
coal. However, the TPP is based on domestic coal. Hence, its operating and maintenance
could turn out to be a cause for worry.
4. Depreciation of rupees against foreign currencies: A substantial portion of company’s revenues will
be denominated in Rupees, while the company is expected to incur substantial
indebtedness denominated in foreign currencies to finance the development of power
projects. Moreover, they have certain EPC contracts with foreign players, the payments
under these contracts are denominated in foreign currencies and secured by a letter of
credit. Therefore, there is a exchange rate risk for payments made pursuant to the letter
of credit until the conservation of liability from foreign currency to Rupees. In addition,
coal supply agreements with AEL are denominated in US dollars. Accordingly, any
depreciation of the Rupee against these currencies will significantly increase the Rupee
cost to them of servicing and repaying their foreign currency payables.
56
Appendix A:
A.1 Raw coal production (in million tonnes)
Source: Coal India LimitedSource: Coal India LimitedSource: Coal India LimitedSource: Coal India Limited
A.2 Regression analysis to determine the linear estimate of coal production
Source of
input data: Coal India Limited
y = 18.071x + 202.35R² = 0.9906
0
50
100
150
200
250
300
350
400
450
500
0 2 4 6 8 10 12 14
Pro
du
ctio
n
Time span
Linear Estimate of Coal Production Period 98-99 to 09-10
A.3 Normative requirement of coal & status of
Description
Coal Linkage Available Block Allocated Imported coal tied up
Total available
Linkage required to be accorded Block required to be accorded Imported coal to be tied up
Total
Total Coal based capacity addition (MW) in 11th plan
Source: Central Electricity Authority (CEA)
A.4
Source: Speech given by Dr. Ir. Sukma Saleh Hasibuan (DirectorSupply Outlook in Indonesia on 16 October 2007
0
50
100
150
200
250
300
350
400
2006 2007 2008
45 49 53
148134
193183
Indonesian Coal Mining Industry ProjectionsIndonesian Coal Mining Industry ProjectionsIndonesian Coal Mining Industry ProjectionsIndonesian Coal Mining Industry Projections
57
ormative requirement of coal & status of coal linkage
Capacity (MW) Normative requirement (MT)
32455 162.285830 29.15
0
38285 191.43
be 4500 22.5
2500 12.5
Imported coal to be tied up 1350 4.05
8350 39.05
Total Coal based capacity addition (MW) in 11th plan
46635 230.475
Source: Central Electricity Authority (CEA)
Dr. Ir. Sukma Saleh Hasibuan (Director Ministry of Energy and Mineral Resources (MEMR), Indonesia) on on 16 October 2007
2008 2009 2010 2015 2020
53
7590
130
170
145 150 150 150
198
225240
280
Domestic Export Production
Indonesian Coal Mining Industry ProjectionsIndonesian Coal Mining Industry ProjectionsIndonesian Coal Mining Industry ProjectionsIndonesian Coal Mining Industry Projections
Normative requirement (MT)
162.28 29.15
0
191.43
22.5
12.5
4.05
39.05
230.475
Ministry of Energy and Mineral Resources (MEMR), Indonesia) on Coal
2020 2025
170
220
150 150
320
370
58
A.5 World coal reserve (Country wise data)
Coal: Proved Reserves at end 2008Anthracite Sub-bituminous
Million tonnes and bituminus and lignite Total Share of Total R/P ratio
US 108950 129358 238308 28.9% 224Canada 3471 3107 6578 0.8% 97Mexico 860 351 1211 0.1% 106Total North America 113281 132816 246097 29.8% 216
Brazil - 7059 7059 0.9% *Colombia 6434 380 6814 0.8% 93Venezuela 479 - 479 0.1% 74Other S. & Cent. America 51 603 654 0.1% *Total S. & Cent. America 6964 8042 15006 1.8% 172
Bulgaria 5 1991 1996 0.2% 70Czech Republic 1673 2828 4501 0.5% 75Germany 152 6556 6708 0.8% 35Greece - 3900 3900 0.5% 58Hungary 199 3103 3302 0.4% 351Kazakhstan 28170 3130 31300 3.8% 273Poland 6012 1490 7502 0.9% 52Romania 12 410 422 0.1% 12Russian Federation 49088 107922 157010 19.0% 481Spain 200 330 530 0.1% 32Turkey - 1814 1814 0.2% 21Ukraine 15351 18522 33873 4.1% 438United Kingdom 155 - 155 � 9Other Europe & Eurasia 1025 18208 19233 2.3% 268Total Europe & Eurasia 102042 170204 272246 33.0% 218
South Africa 30408 - 30408 3.7% 121Zimbabw e 502 - 502 0.1% 287Other Africa 929 174 1103 0.1% *Middle East 1386 - 1386 0.2% *Total Middle East & Africa 33225 174 33399 4.0% 131
Australia 36800 39400 76200 9.2% 190China 62200 52300 114500 13.9% 41India 54000 4600 58600 7.1% 114Indonesia 1721 2607 4328 0.5% 19Japan 355 - 355 � 289New Zealand 33 538 571 0.1% 111North Korea 300 300 600 0.1% 17Pakistan 1 2069 2070 0.3% 496South Korea 133 - 133 � 48Thailand - 1354 1354 0.2% 75Vietnam 150 - 150 � 4Other Asia Pacific 115 276 391 � 26Total Asia Pacific 155809 103444 259253 31.4% 64
Total World 411321 414680 826001 100.0% 122
59
A.6 Worldwide coal production and Consumption trend
Source: http://www.bp.com/sectiongenericarticle.do?categoryId=9023784&contentId=7044480
Coal: Production *
Million tonnes oil equivalent 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
US 603.2 584.3 570.1 590.3 570.1 553.6 572.4 580.2 595.1 587.7 596.9Canada 40.8 39.2 37.1 37.6 34.9 32.2 34.7 35.6 34.5 36.9 36.0Mexico 4.8 4.9 5.4 5.3 5.3 4.6 4.7 5.2 5.5 6.0 5.5Total North America 648.8 628.3 612.6 633.2 610.2 590.4 61 1.8 620.9 635.2 630.6 638.4
Brazil 2.0 2.1 2.9 2.1 1.9 1.8 2.0 2.4 2.2 2.3 2.4Colombia 21.9 21.3 24.9 28.5 25.7 32.5 34.9 38.4 42.6 45.4 47.8Venezuela 4.7 4.8 5.8 5.6 5.9 5.1 5.9 5.3 5.4 5.9 4.7Other S. & Cent. America 0.8 0.5 0.4 0.5 0.4 0.5 0.2 0.3 0.6 0.5 0.6Total S. & Cent. America 29.5 28.7 33.9 36.8 33.9 39.9 43. 0 46.3 50.9 54.0 55.5
Bulgaria 5.0 4.2 4.4 4.4 4.4 4.6 4.5 4.1 4.2 4.7 4.8Czech Republic 26.0 23.1 25.0 25.4 24.3 24.2 23.5 23.5 23.7 23.4 22.8France 3.6 3.3 2.3 1.5 1.1 1.3 0.4 0.2 0.2 0.2 0.1Germany 61.3 59.4 56.5 54.1 55.0 54.1 54.7 53.2 50.3 51.5 47.7Greece 8.1 8.0 8.2 8.5 9.1 9.5 9.6 9.4 8.6 9.0 9.1Hungary 3.0 3.1 2.9 2.9 2.7 2.8 2.4 2.0 2.1 2.0 1.9Kazakhstan 36.0 30.0 38.5 40.7 37.8 43.3 44.4 44.2 49.1 50.0 58.8Poland 79.6 77.0 71.3 71.7 71.3 71.4 70.5 68.7 67.0 62.3 60.5Romania 5.7 5.1 6.4 7.1 6.6 7.0 6.7 6.6 6.5 6.7 6.5Russian Federation 103.9 112.1 116.0 122.6 117.3 127.1 131.7 139.2 145.1 148.2 152.8Spain 9.3 8.6 8.0 7.6 7.2 6.8 6.7 6.4 6.2 6.0 5.5Turkey 13.9 13.3 13.9 14.2 11.5 10.5 10.5 12.8 13.4 15.8 17.8Ukraine 39.9 42.3 42.0 43.5 42.8 41.7 42.2 40.9 41.8 39.9 40.2United Kingdom 25.0 22.5 19.0 19.4 18.2 17.2 15.3 12.5 11.3 10.3 10.9Other Europe & Eurasia 16.7 13.4 14.0 14.4 15.3 15.8 15.6 14.7 15.7 16.7 17.1Total Europe & Eurasia 437.0 425.3 428.6 438.2 424.6 437. 2 438.7 438.4 445.3 447.0 456.4
Total Middle East 0.6 0.7 0.6 0.5 0.4 0.6 0.6 0.6 0.5 0.5 0.5
South Africa 127.1 125.6 126.6 126.1 124.1 134.1 137.2 137.7 138.0 139.6 141.1Zimbabw e 3.5 3.2 2.8 2.9 2.5 1.8 2.4 1.9 1.4 1.4 1.1Other Africa 1.4 1.3 1.2 1.2 1.3 1.6 1.3 1.2 1.2 1.1 1.1Total Africa 132.0 130.1 130.7 130.2 128.0 137.5 140.9 140. 7 140.5 142.1 143.4
Australia 149.8 160.8 166.3 179.9 184.5 190.1 198.8 206.5 211.0 218.5 219.9China 628.7 645.9 656.7 697.6 733.7 868.4 1012.1 1120.0 1205.1 1282.4 1414.5India 126.5 124.4 132.2 133.6 138.5 144.4 155.7 162.1 170.2 181.0 194.3Indonesia 38.3 45.3 47.4 56.5 63.6 70.3 81.4 93.9 119.2 133.7 141.1Japan 2.0 2.2 1.7 1.8 0.8 0.7 0.7 0.6 0.7 0.8 0.7New Zealand 2.0 2.1 2.2 2.4 2.7 3.2 3.2 3.2 3.5 3.0 3.1Pakistan 1.5 1.5 1.4 1.5 1.6 1.5 1.5 1.6 1.7 1.6 1.9South Korea 2.0 1.9 1.9 1.7 1.5 1.5 1.4 1.3 1.3 1.3 1.3Thailand 6.1 5.7 5.1 5.6 5.7 5.3 5.6 5.8 5.3 5.1 5.1Vietnam 6.4 4.9 6.5 7.5 9.2 10.8 14.7 18.3 21.8 23.1 23.6Other Asia Pacif ic 15.7 18.0 19.3 19.7 19.3 20.0 21.7 23.8 24.1 24.9 25.3Total Asia Pacific 978.9 1012.8 1040.8 1107.8 1161.0 1316 .2 1496.9 1637.1 1764.0 1875.4 2030.7
Total World 2226.8 2225.9 2247.1 2346.7 2358.1 2521.8 2732 .0 2884.2 3036.3 3149.5 3324.9
60
Coal: Consumption *
Million tonnes oil equivalent 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
US 545.7 544.9 569.0 552.2 552.0 562.5 566.1 574.2 565.7 573.2 565.0Canada 30.8 30.5 31.8 34.0 31.6 33.4 29.9 31.7 31.0 32.3 33.0Mexico 5.9 6.0 6.2 6.8 7.6 8.6 7.0 9.1 9.4 9.1 9.0Total North America 582.3 581.4 606.9 593.0 591.1 604.5 60 3.0 614.9 606.1 614.6 606.9
Argentina 0.8 0.9 0.8 0.6 0.5 0.7 0.8 0.9 0.3 0.4 0.4Brazil 11.4 11.9 12.5 12.2 11.5 11.8 12.8 12.7 12.5 13.4 14.6Chile 3.7 3.9 3.0 2.3 2.4 2.3 2.6 2.6 3.2 3.3 3.2Colombia 2.8 2.4 2.7 2.7 2.5 2.4 2.0 2.3 2.4 2.7 2.3Ecuador - - - - - - - - - - -Peru 0.4 0.5 0.5 0.4 0.4 0.4 0.5 0.5 0.4 0.5 0.5Venezuela ^ 0.1 ^ ^ ^ ^ - ^ 0.1 0.1 ^Other S. & Cent. America 0.5 0.6 0.6 0.7 1.0 2.1 1.9 1.8 2.1 2.2 2.2Total S. & Cent. America 19.7 20.1 20.1 19.0 18.3 19.6 20. 5 20.8 20.9 22.5 23.3
Austria 3.0 3.2 3.2 2.9 3.0 2.9 2.9 2.8 2.8 3.1 3.1Azerbaijan - - - ^ ^ ^ ^ ^ ^ ^ ^Belarus 0.4 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 ^Belgium & Luxembourg 7.9 6.9 7.6 7.6 6.7 6.5 6.4 6.1 6.1 5.5 4.6Bulgaria 8.2 6.6 6.3 6.9 6.5 7.1 6.9 6.9 7.1 7.8 7.5Czech Republic 20.5 19.0 21.0 21.2 20.6 20.8 20.5 19.8 19.4 20.0 19.1Denmark 5.6 4.7 4.0 4.2 4.2 5.7 4.6 3.7 5.6 4.7 4.1Finland 3.4 3.6 3.5 4.0 4.4 5.8 5.3 3.1 5.2 4.6 3.4France 16.1 14.3 13.9 12.1 12.4 13.3 12.8 13.3 12.1 12.3 11.9Germany 84.8 80.2 84.9 85.0 84.6 87.2 85.4 82.1 83.5 85.7 80.9Greece 8.8 9.1 9.2 9.3 9.8 9.4 9.0 8.8 8.1 8.5 8.6Hungary 3.4 3.4 3.2 3.4 3.1 3.4 3.1 2.7 2.9 2.9 2.8Iceland 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1Republic of Ireland 1.9 1.6 1.8 1.9 1.8 1.7 1.8 1.8 1.6 1.5 1.4Italy 11.6 11.6 13.0 13.7 14.2 15.3 17.1 17.0 17.2 17.2 17.0Kazakhstan 22.9 19.8 23.2 22.5 22.8 25.2 26.5 27.2 28.1 30.8 33.6Lithuania 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2Netherlands 9.4 7.7 8.6 8.5 8.9 9.1 9.1 8.7 8.5 9.0 9.2Norw ay 0.7 0.7 0.7 0.6 0.5 0.5 0.6 0.5 0.4 0.4 0.5Poland 63.8 61.0 57.6 58.0 56.7 57.7 57.3 55.7 58.0 57.9 59.4Portugal 3.6 3.6 4.5 3.7 4.1 3.8 3.7 3.8 3.8 3.3 3.2Romania 7.0 6.7 7.0 7.2 7.6 7.8 7.4 7.6 8.5 7.4 7.7Russian Federation 100.7 101.0 105.2 102.4 103.0 104.0 99.5 94.2 96.7 93.5 101.3Slovakia 4.5 4.3 4.0 4.1 4.0 4.2 4.1 3.9 3.8 3.8 3.9Spain 17.7 20.5 21.6 19.5 21.9 20.5 21.0 21.2 18.5 20.2 14.6Sw eden 2.0 2.0 1.9 2.0 2.2 2.2 2.3 2.2 2.3 2.2 2.0Sw itzerland 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1Turkey 24.0 22.6 25.5 21.8 21.2 21.8 23.0 26.1 28.8 31.0 30.4Turkmenistan - - - - - - - - - - -Ukraine 36.9 38.5 38.8 39.4 38.3 39.0 39.1 37.5 39.8 39.7 39.3United Kingdom 38.6 34.3 36.7 38.9 35.7 38.1 36.6 37.4 40.8 38.2 35.4Uzbekistan 1.2 0.9 1.0 1.1 1.0 1.0 1.2 1.1 1.1 1.4 1.4Other Europe & Eurasia 20.9 16.4 17.3 16.5 18.7 19.6 20.1 18.4 15.5 15.7 16.1Total Europe & Eurasia 529.5 504.5 525.6 518.7 518.6 533. 9 527.8 514.1 526.6 528.9 522.7
Iran 1.0 1.0 1.1 1.1 1.1 1.1 1.0 1.2 1.3 1.3 1.3Kuw ait - - - - - - - - - - -Qatar - - - - - - - - - - -Saudi Arabia - - - - - - - - - - -United Arab Emirates - - - - - - - - - - -Other Middle East 5.8 5.7 6.2 7.2 7.6 7.9 8.0 7.9 7.8 8.1 8.1Total Middle East 6.8 6.7 7.3 8.3 8.7 9.0 9.0 9.1 9.1 9.3 9.4
Algeria 0.5 0.5 0.5 0.6 0.9 0.8 0.8 0.6 0.7 0.7 0.7Egypt 0.8 0.6 0.6 0.7 0.7 0.9 0.9 1.0 0.9 1.0 1.0South Africa 83.4 82.3 81.9 80.6 83.5 89.3 94.5 91.9 93.8 97.7 102.8Other Africa 7.0 6.5 6.4 7.3 7.2 6.4 7.2 7.3 6.8 6.2 5.7Total Africa 91.6 89.9 89.4 89.3 92.4 97.4 103.4 100.8 102.3 105.7 110.3
Australia 45.8 46.2 46.5 47.9 51.3 50.5 53.1 54.9 56.9 55.8 51.3Bangladesh 0.1 ^ 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4China 651.9 656.2 667.4 681.3 713.8 853.1 983.0 1100.5 1215.0 1313.6 1406.3China Hong Kong SAR 4.4 3.9 3.7 4.9 5.4 6.6 6.6 6.7 7.0 7.5 7.0India 136.1 135.8 144.2 145.2 151.8 156.8 172.3 184.4 195.4 212.9 231.4Indonesia 9.3 11.6 13.7 16.7 18.0 17.9 20.2 26.1 24.2 28.4 30.2Japan 88.4 91.5 98.9 103.0 106.6 112.2 120.8 121.3 119.1 125.3 128.7Malaysia 1.6 1.8 1.9 2.6 3.6 4.2 5.7 6.3 7.3 7.1 5.0New Zealand 1.1 1.2 1.1 1.3 1.3 1.9 2.0 2.2 2.2 1.6 2.1Pakistan 2.1 2.1 2.0 2.1 2.4 2.9 3.8 4.1 4.2 5.1 6.7Philippines 2.7 2.9 4.3 4.5 4.7 4.7 5.0 5.7 5.5 5.9 6.2Singapore - - - - - - - - - - -South Korea 36.1 38.2 43.0 45.7 49.1 51.1 53.1 54.8 54.8 59.7 66.1Taiw an 23.6 24.8 28.7 30.6 32.7 35.1 36.6 38.1 39.6 41.8 40.2Thailand 7.3 7.9 7.8 8.8 9.2 9.4 10.4 11.2 12.4 14.1 15.4Other Asia Pacif ic 21.3 24.0 25.5 26.4 25.9 26.5 29.6 30.9 33.2 34.2 34.6Total Asia Pacific 1031.8 1048.0 1089.0 1121.5 1176.1 133 3.2 1502.5 1647.6 1777.2 1913.5 2031.2
Total World 2261.7 2250.7 2338.4 2349.7 2405.2 2597.6 2766 .2 2907.4 3042.3 3194.5 3303.7
61
A.7
Existing/Proposed Inter-Regional Power Transfer Capacity
(By the End of XI Plan i.e. 2012) in India (Figures in MW)
Region Existing Under Phase-I X Plan & XI Plan Total
East-North Dehri-Sahupuri 220 kV S/c 200 Sasaram HVDC back-to-back 500 Muzaffarpur-Gorakhpur 400 kV D/c (Tala Transmission System) 2500 Barh/Kak/N.K' pura 765 kV 3x S/c 5000 Pooling Station-West of Delhi 2000 MW HVDC Bipole Line 2500 Hirma-Jaipur HVDC bipole 2500 Sub-Total 700 12500 13200 East-West Bodhipadar-Korba 220 kV 3 circuits 450 Rourkela-Raipur 400 kV D/c 1000 Hirma-Raipur 400 kV D/c 1000 Hirma-Seepat 400 kV D/c 1000 Sub-Total 450 3000 3450 West-North Vindhyachal HVDC back-to-back 500 Existing 220 kV AC lines 350 Malanpur-Bhiwadi 765 kV S/c 2500 Zerda-Sirohi 400 kV D/c 1000 Sub-Total 850 3500 4350 East-South Gazuwaka HVDC back-to-back 500 500 Existing 220 kV AC lines 200 Talcher-Kolar HVDC bipole 2000 2nd HVDC bipole 2500 Sub-Total 700 5000 5700 West-South Chandrapur HVDC back-to-back 1000 Karnataka-Maharashtra 500 Existing 220 kV AC lines 300 Sub-Total 1300 500 1800 East-North East Bongaigaon-Malda 400 kV D/c 800 Bipara-Salakati 220 kV D/c 200 Sub-Total 1000 1000 Total 5000 24500 29500
Source: http://www.indiastat.com/table/power/26/transmissionanddistribution/284/33358/data.aspx
62
A.8
Proposed Transmission Line with Private Participation Sl. No. Project Sl. No. Project
1 1980 MW North Karanpura Project 8 1320 MW Barh-II Project 2 Talcher Augmentation Scheme 9 1000 MW Nabinagar Project 3 1000 MW Maithon Project 10 3200 MW Daripally project 4 Import of NER/ER surplus by NR 11 500 MW Kodarma Project 5 SR-WR Synchronous interconnector 12 1000 MW Mejia Ext. Project 6 Kawas-Navsari 400 kV DC 13 4000 MW Lara Project 7 Navsari-Mumbai 400 kV DC 14 1000 MW Simhadri Ext. project
63
Appendix B:
B.1 Existing Policy framework in coal industry: A Bird Eye view:
Eligibility to do Coal Mining: Under the provisions in Section 3 (3) of Coal Mines
(Nationalisation) Act, 1973, Coal mining was mostly reserved for the public sector.
Amendments to Coal Mines (Nationalisation) Act, 1973 have been done to facilitate
captive mining in approved end-use industries. The parties eligible to do coal mining in
India without the restriction of captive consumption are:
i. The Central Government, a Government company (including a State Government
company), a Corporation owned, managed and controlled by the Central Government.
ii. A person to whom a sub-lease has been granted by the above mentioned Government
company or corporation having a coal mining lease, subject to the conditions that the
coal reserves covered by the sub-lease are in isolated small pockets or are not sufficient
for scientific and economic development in a coordinated manner and that the coal
produced by the sub-lessee will not be required to be transported by rail.
Coal Mining Lease under the Mines and Minerals (Regulation & Development) Act, 1957:
Under the provisions of Section 5 (2) of the Coal Mines (Nationalisation) Act, 1973, the
Coal India Limited enjoys the status of becoming the deemed lessee of the concerned
State Governments in relation to all the nationalised coal mines. Under the provisions of
Section 11 (2) of the Coal Bearing Areas (Acquisition & Development) Act, 1957 also, the
Coal India Limited acquires the same status of becoming deemed lessee of the concerned
State Governments in relation to the lands over the coal bearing areas acquired under
this Act. The deemed leases being in the nature of statutory leases, the Coal India
Limited does not have to obtain separate leases under the MMRD Act, 1957 from the
concerned State Government in respect of the nationalised mines and the coal bearing
lands acquired under the CBA Act.
However, in case any of the companies eligible to do coal mining in India including CIL
and the other Government and private coal companies want to acquire coal bearing
lands under the Land Acquisition Act, 1894, they will be required to obtain coal mining
leases from the concerned State Governments under the MMRD Act, 1957. Coal being a
mineral listed in the First Schedule of the MMRD Act, 1957, the State Governments can
grant coal mining leases only with the previous approval of the Central Government
accorded under the proviso to Section 5 (1) of MMRD Act.
64
Before the previous approval of the Central Government is accorded, the coal mining
company is required to get the mining plan for the proposed coal mining area approved
from the Central Government. The coal mining leases under the MMRD Act are now
granted for 20-30 years initially and can be renewed for a further period of 20 years with
the previous approval of the Central Government. The coal mining leases under the
MMRD Act, 1957 are ordinarily subject to a ceiling of 10 sq. kms area.
65
Appendix C
C.1 State wise status of IPPs
1. Andhra Pradesh
Proposed Projects:
Promoter Company Name of the
Project Location Capacity
(MW) Fuel Type Status
GVK Group
400 MW Natural Gas
Based Merchant
Power Plant
Jegurupadu Village, Kadiyam Mandal, East
Godavari District, Andhra Pradesh 400 MW Natural Gas
Expected to come up in Twelfth Plan
GMR Group CCPP Vemagiri, Rajahmundry,
Andhra Pradesh 800 MW Natural Gas
Expected to come up in Twelfth Plan
Thermal Powertech
Corporation (India)
Limited (TPCIL) 1980 MW TPP
Painampuram village, Muthukur (M), Nellore
district, Andhra Pradesh 1980 MW
Blended Coal (30%-Imported +
70% -domestic)
Expected to come up in Twelfth Plan
Alfa Infraprop (P)
Limited 2640 MW
Project
Near Komarada village & Mandal, Vizianagaram
District, Andhra Pradesh 2640 MW Coal
Expected to come up in Twelfth Plan
Kineta Power
Private Limited Kineta Thermal Power Project
Tamminapatnam village, Chillakur Mandal, Nellore District, Andhra Pradesh 1980 MW Coal
Expected to come up in Twelfth Plan
Krishnapatnam
Power Corporation
Limited, an SPV of
Navayuga Group
Company Krishnapatnam TPP
Tamminapatnam and Momidi Villages,
Chillakur Mandal, SPS Nellore District, Andhra
Pradesh 1980 MW
Blended Coal (70% Indigenous Coal + 30%
Imported Coal)
Expected to come up in Twelfth Plan
Nagarjuna
Construction
Company
NCC Vamsadhara Power Project
Sompeta Mandal, Srikakulam Dist, Andhra Pradesh 2640 MW
Blended Coal- Indian Coal (70%): Imported Coal (30%)
Expected to come up in Twelfth Plan
Under Construction
Promoter Company
Name of the Project
Location Capacity (MW)
Fuel Type
Status
BPL Power Projects
(AP) Pvt. Ltd.
Ramagundam TPS
Ramagundam Town, Karimnagar District,
Andhra Pradesh
2 x 300 Coal Unit-I COD: March 2011 Unit-II COD:May 2011
East Coast Energy
Private Limited
Bhavanapadu Thermal Power Plant Project
Profile
Bhavanapadu Village, Srikakulam
District, Andhra Pradesh, India
2640 MW (Stage I:
2x660 MW Stage II:
2x660 MW)
Coal Synchronization of 1st unit - September 2011 COD of 1st unit - Dec 2011 Synchronization of 2nd unit-Feb 2012
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Konaseema Gas
Power Ltd
Konaseema CCPP
Konaseema GT1 140 + Gas FC achieved in February 27, 2004. Construction completed.
GT2 140 + ST 165
Gas
Expected COD: GT-1 (140MW): July 2009; GT-2 (140MW): July 2009; ST (165MW): July 2009
Gautami Power Ltd
(Subsidiary of
GVKIPL)
Gautami CCPP Peddapuram GT1 145 Gas FC achieved on 29.03.2004. Construction completed.
GT2 145
Gas
Expected COD: GT-1 (140MW): May 2009; GT-2 (140MW): May 2009; ST (165MW): May 2009
GVK Power Krisnapatnam 'A'
Krisnapatnam A 2 x 260 Coal The Project is ready for testing and commissioning depending on when the natural gas is made available by GAIL.
Hinduja-National
Power
Vizag Power Project
Vizag 2 x 520 Coal Pending issue of coal linkage
Kineta Power
Private Limited
Kineta Power Private Limited
Nellore Distt, Andhra Pradesh
1980 MW Coal Under Proposal
Lanco Kondapalli
Power Pvt Ltd.
Lanco Kondapalli
CCPP Expn. Stage-II
Kondapalli, District Krishna
GT-1: 233 MW + ST: 133 MW
Gas Expected to be commissioned by November 2009
Simhapuri Power
Pvt Ltd.
Simhapuri Thermal Power
Plant
Krishnapatnam South, District Nellore
640 MW (Phase I-270 MW Phase II-370 MW)
Coal Madhucon Projects bagged EPC contract worth Rs 989.5 crore on July 14, 2008.
Vikas Power
Private Limited
Coastal Thermal Power
Project
Pynampuram, Muthukur in Nellore District of Andhra
Pradesh
2x135 MW Coal Unit-1: 24 months from the date of financial closure. Unit-2: 30 months from the date of financial closure.
Krishnaveni Sugars
Limited
Krishnaveni Sugars Limited
Mahaboob Nagar Dist, Andhra Pradesh
28 MW Coal Expected Commissioning July 2009
BBI Power Krishnapatnam 'B' TPP
Krishnapatnam (Distt. Nellore)
2 x 260 Coal Uncertain. In its load forecast till 2006-07, submitted to the AP Electricity Regulation Commission, APTransco did not mention the project.
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Operational Projects
KVK Energy RVK energy Andhra Pradesh 16 MW Gas Operations Started on 28.01.2000
Lanco Kondapalli
Power
Kondapalli CCPP
Kondapalli 350 Gas Commissioned on 22.06.2000
Spectrum Power
Generation Limited
Godavari CCGT
Subbampeta (Distt. Kakinada)
208 Gas Commissioned on 31.03.98
BSES Andhra Power
Limited
Peddapuram CCGT
Peddapuram 2x110 Naptha/LNG Commissioned on 12.09.02
Vemagiri Power
Generation Ltd
Vemagiri CCPP
Vemagiri 370 Gas Commissioned January 13, 2006.
GVK Industries Jegurupadu CCPP
Jegurupadu Ph-I: 235 ; Ph-II: 220
Gas/Naptha Phase -I: Commissioned in July 1997 Phase-II (Ext Project ): April 2009
2. Karnataka
Proposed Projects
Company Name of the
Project Location Fuel Capacity
(MW) Status Ind-Barath
Power
(Karwar Ltd) 3x150 MW Ind-Barath TPP
Hankon village, Uttara Kannada district, Karnataka Coal 450 MW
Expected to come up in Twelfth Plan
Reliance
Industries
Limited
2x400 MW Gas Based CCPP Proposed by RIL
Village Dhumansur near Humnabad, District Bidar, Karnataka
Natural Gas 800 MW
Expected to come up in Twelfth Plan
NTPC Kudgi STPP, Stage-I
Kudgi village, Bijapur district, Karnataka Coal 2400 MW
Expected to come up in Twelfth Plan
Under Construction
Company Name of the
Project Location Capacity
(MW) Status Udipi Power
Corporation Limited
(Formerly Nagarjuna
Power Corporation)
Udupi TPP Udupi 2x507.5 Expected commissioning Unit 1: May 2010 Unit 2: September 2010
Siruguppa Sugars &
Chemicals Limited
Siruguppa Sugars & Chemicals
Limited
Mahaboob Nagar Dist,
Andhra Pradesh
40 MW Expected commissioning October 2009
JSW Energy
Limited(Vijaynagar)
Torangallu Extension
Project
Bellary 600 MW Under Execution
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Jindal Power Co. Ltd Toranagallu Expansion
Toranagallu near Bellary
500 The Project was cleared and MoU was signed with the State Govt in 2000. Financial closure awaited and there is dispute over water availability for the project. Other pending issues pertain to allocation of additional land for ash dyke, MoEF clearance and PPA with KPTCL.
Operational Projects
Company Name of the Project
Location Capacity (MW)
Status
Bhoruka Power
Corporation
Chayadevi Plant
Near Narayanpur, Shorapur Taluk
24 MW (2 x 12 MW)
Commissioned on July 2006
KVK Energy &
MVK Energy
Paschim HEP Sakaleshapura, Hassan District
Karnataka
2 x 4.5 MW
Commissioned in 2007
Bhoruka Power
Corporation
Mandagere HEP
Mandya 2 x 1.75 Commissioned in September 2004.
Bhoruka Power
Corporation
Rajankollur HEP
Gulbarga 2 x 1 Commissioned in August 1999.
Bhoruka Power
Corporation
Shahapur HEP Shahapur 6 x 5.5 Commissioned between April 97 to November 98.
Bhoruka Power
Corporation
Madhavamantri HEP
Madhavamantri Anicut at Hemmige
Village
3 x 1 Commissioned in July 2001.
Bhoruka Power
Corporation
Shivpur HEP Shivpur 2 x 9 Commissioned in November 1992.
Bhoruka Power
Corporation
D9 Shahapur HEP
Banathihal village, Shahapur taluk
1 MW Commissioned in August 2003
Bhoruka Power
Corporation
Neria HEP Near Dharmasthala, Belthangady Taluk
9 MW (2 x 4.5 MW)
Commissioned in March 2006
Bhoruka Power
Corporation
Chitradurga Plant
Bettadanagenahalli. 2000 KW Commissioned in March 2005
Bhoruka Power
Corporation
Sri Rama Devara Katte
HEP
Near Kattebelaguli village,
Holenarasipur Taluk
1.5 MW Commissioned in September 2001
GMR Energy GMR Energy Mangalore 220 MW Commissioned in November 2001
Jindal Power
Company
Toranagallu TPS
Bellary 2 x 130 Financial closure achieved on 27.3.99; Commissioned in May , 1999.
Tata Electric
Companies
Belgaum Power Project
Belgaum 81.3 Financial closure achieved ; Commissioned on 31.3.2001.
Tannirbhavi
Power Company
Tanir Bavi Barge Mounted
Power Plant
Tannirbhavi 220 Financial closure achieved in September, 2000 ; Commissioned on November,2000.
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3. Kerala
Under Construction
Promoter Company Name of the Project
Loc ation Capacity
(MW)
Status
Kerala State Industrial
Development
Corporation (KSIDC) Kasargode Power
Generation Limited Kasargode 2 x 800 Under Proposal
Kannur Power Projects Kannur CCGT Kannur 513
Financial closure yet to be achieved; Under approval. Gas linkage awaited. KPPL are negotiating with Reliance Industries for long term supply of natural gas. 176 acres of land acquired for this project.
Siasin Energy Vypeen CCGT Vypeen 1200 Financial closure yet to be achieved. Kerala State Industrial
Development
Corporation (KSIDC) Kasargode Power Generation Limited Kasargode
2 x 800 Under Proposal
Kannur Power Projects Kannur CCGT Kannur 513
Financial closure yet to be achieved; Under approval. Gas linkage awaited. KPPL are negotiating with Reliance Industries for long term supply of natural gas. 176 acres of land acquired for this project.
4. Tamilnadu
Proposed Projects
Promoter Company Project Name Location
Capacity (MW) Fuel Type Status
Chennai Power
Generation Ltd 1030 MW TPP Tiruvallur District,
Tamil Nadu 1030 MW Imported Coal Expected to come up in Twelfth Plan
North Chennai
Power Company
Limited, a SPV
promoted by ABAN
Group 1200 MW TPP Tiruvallur District,
Tamilnadu 1200 MW Imported Coal Expected to come up in Twelfth Plan
Tridem Port &
Power Company
Limited (TPPCL) 2140 MW TPP Nagapattinam
district, Tamil Nadu 2140 MW
Blended Coal (Indigenous + Imported)
Expected to come up in Twelfth Plan
Patel Engineering
(PEL) Group PEL Thermal Power Project
Tarangambadi, Nagapattinam
district, Tamil Nadu 1000 MW Imported Coal (Indonesia)
Expected to come up in Twelfth Plan
IL&FS Tamil Nadu
Power Co Ltd 4000 MW Cuddalore TPP
Cuddalore district, Tamil Nadu 3600 MW
Imported Coal (Indonesia)
Expected to come up in Twelfth Plan
Costal Energen's
Costal Energen's 1600 MW TPP
Tuticorin District, Tamil Nadu 1600 MW
Blended Coal (Indigenous + Imported)
Expected to come up in Twelfth Plan
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Under Construction
Promoter Company Project Name Location Capacity (MW)
Fuel Type Status
Unnicornn Powergen
Private Ltd
Unnicorn Mega Power Plant
Tuticorin, Tamil Nadu
2x600 MW Coal Expected Commissioning:2010
Chennai Power
Generation
Kattupalli CCPP
Kattupalli 1000 Liquefied Natural Gas
Financial closure not yet achieved. No updates available.
Tri-Sakthi Energy North Madras TPP–III
North Madras
525 Imported Coal No updates available
Videocon Power North Madras TPP – II
North Madras
2 x 525 Imported Coal Ist unit - 42 months, IInd Unit - 46 months from Financial Closure
Indian Power
Projects
Vember CCGT Vembar near
Tuticorin
1,873 LNG Likely Commissioning: 2009 [uncertain]
Cuddalore Power
Corporation
Cuddalore TPP
Cuddalore 2 x 660 Imported Coal Unlikely to come up
SPIC Electric Power
Corporation
Tuticorin TPP St. IV
Tuticorin 525 Imported Coal 12th plan
Dakshin Bharat
Energy
DBEC Ennore Power Project
Ennore 5 x 370 LNG Unlikely to come up
Operational Projects
Promoter Company Project Name Location Capacity (MW)
Fuel Type
Status
GMR Vasavi Power Basin Bridge DGPP
Basin Bridge near Chennai
4 x 50 LSHS Commissioned on: December 31, 1998
Samalpatti Power Company Samalpatti DGPP Pochkanapalli; Distt. Dharampuri
105.66 LSHS Commissioned in: March 2001
PPN Power Generating
Company
Pillaiperumalnallur CCGT
Pillaiperumalnallur; Distt. Thanjavur
330.5 Gas/ Naphtha
Commissioned on: April 5, 2001
Balaji Power Corporation Samayanallur DGPP
Samayanallur, District Madurai
106 LSHS, FO, LSWR
Commissioning: September 22, 2001.
ST-CMS Electric Company Neyveli TPS - Zero Unit
Neyveli 250 Lignite Commissioned on: October 11, 2002
Aban Power Co. Ltd. Karuppur CCPP Karuppur Village Near Kuttalam,
Thanjavur District.
120 Natural Gas
Commissioned on : August 11, 2005
Arkay Energy Valantharavai GTPP
Valantharavai Unit I: 52.8
Unit II: 67.11
Liquid Fuel (Petroleum)
Commissioned on: Unit I - October 29, 2005.
Regency Power
Corporation
Ramanathapuram CCGT
Ramanathapuram 60 Natural Gas
Commissioning : 2005-06
Arkay Energy Valantharavai GTPP
Valantharavai Unit I: 52.8
Liquid Fuel
Commissioned t I - October 29, 2005.
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5. Delhi
Proposed Project
Promoter Company
Name of the
Project
Location Capacity (MW)
Fuel Type
Status
NDPL Rithala CCPP
Rohini, District North-West in
Delhi
108 MW Natural Gas
MoEF clearance awaited
Apollo Energy New Delhi TPS
Narela 2 x 175 Coal DPR returned by CEA on 27.2.01 due to pending inputs.
KLT Power Bawana - II
Bawana - II 650 Gas On 30 January 2001, Delhi government decided to shelve the project indefinitely.
Reliance
Power
Bawana - I
Bawana - I 421 Gas Scheme returned on 19.12.97 due to pending inputs and clearances; On 30 January 2001, Delhi government decided to shelve the project indefinitely.
6. Haryana
Promoter Company Name of the Project
Location Capacity (MW)
Fuel Type
Status
Magnum Power
Generation Limited
Gurgaon CCGT Gurgaon 4 x 6.3 LSHS/HFO
Commissioned in 1998.
Phoenix Power
Development
Corporation
Phoenix Power Project
Gurgaon, Panchkula,
Ambala, Panipat
3 x 50 + 1 x 25 HFO The project has most likely been shelved.
Indian Oil Corporation Panipat Power Project
Panipat 300 Refinery Residue
The project has most likely been shelved.
Yamuna Nagar TPP Yamuna Nagar Power Project
Yamuna Nagar 500 Coal Project declared dead.
India Power Partners Bahadurgarh Power Project
Bahadurgarh 2 x 25 -- The project has most likely been shelved.
7. Himachal Pradesh
Proposed Projects
Promoter Company Name of the Project
Location Capacity (MW)
Status
Lanco Green Power Pvt Ltd Budhil HEP Chamba 2 x 35 Expected Commissioning June 2011-12
Himachal Sorang Power
Corporation Pvt Ltd
Sorang HEP Kinnaur 2 x 50 Expected Commissioning June 2010
Jaypee Karcham Hydro Corp.
Ltd
Karcham Wangtoo HEP
Kinnaur 4 x 250 Financial closure achieved on March 2006; Sch commissioning: March 2012.
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LNJ Bhilwara Group Allain Duhangan HEP
Manali 2 x 96 Financial closure in April 2005. Infrastructure activities in progress.
Everest Power Company Malana II HEP Malana 2 x 50 Expected Commissioning: Unit I : December 2009, Unit II : January 2010
Malana Power Company
(RFQ)
Bara-Bangahal HEP
Bara-Bangahal
200 MW Under RFQ Stage
Operational Projects
Promoter Company
Name of the Project
Location Capacity (MW)
Status
Jaiprakash Hydro
Power
Baspa HEP Kinnaur 3 X 100 Financial closure achieved on January 21, 1998 ; Commissioned on May 27, 2003.
Malana Hydro
Project
Malana HEP
Malana 2 x 43 Financial closure achieved in July, 2000; Commissioned in October, 2001.
8. Bihar
Promoter Company
Name of the Project Location Capacity
Fuel Type Status
Tata Power
Company
Limited Jojobera
TPS Jamshedpur 360 Coal
Stage I (240 MW) : Financial closure achieved on December 7,1998 ; Commissioned on August 27, 2001. Stage II : Commissioned on Sept 23, 2005
9. Jharkhand
Proposed Projects
Name of the Project Location Capaci ty Fuel Type Status 2000 MW TPP
Proposed by EPJL Chandwa Tehsil, Latehar District, Jharkhand State 2000 MW Coal
Expected to come up in Twelfth Plan
HDIL Chakulia TPP Near Chakulia, district Purbi Singhbhum, Jharkhand 1320 MW Coal
Expected to come up in Twelfth Plan
Under Construction
Name of the Project Location Capacity Fuel Type Status
Ramgarh TPS-I Ramgarh in Hazaribagh
100 MW Thermal Power Plant Coal
Expected Commissioning: September 2009
KVK Nilanchal Power
Private Limited Near Torpa, District Khunti, Jharkhand 2 x 600 MW Coal
Expected Commissioning: Unit I : December 2011, Unit II : March 2012
SKS Ispat & Power Ltd.
Ramgarh District in the state of Jharkhand 1200 MW Coal
Expected Commissioning: Unit I: September 2011, Last unit by
March 2012
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Operational Projects
Name of the Project Location Capacity Fuel Type Status
Jojobera TPP Singhbhum Unit I - 67.5 MW, Unit II: 120 MW, Unit III: 120 MW, Unit IV: 120 MW Coal
All Units Commissioned
10. Madhya Pradesh
Proposed Projects
Promoter Company Name of the Project Location
Capacity (MW)
Fuel Type Status
Aryan Coal
Beneficiations Pvt
Ltd
1200 MW TPP proposed by Aryan Coal Beneficiations Pvt Ltd
Bhumka-Musamudi village, Majhauli Tehsil, Sidhi district, Madhya Pradesh 1200 MW Coal
Expected to come up in Twelfth Plan
Bhaskar Group
1320 MW TPP Proposed By DB Power Ltd
District Sinarauli, Madhya Pradesh 1320 MW Coal
Expected to come up in Twelfth Plan
Moser Baer Power
& Infrastructure Ltd Anuppur Thermal Power Project
Anuppur district, Madhya Pradesh 2000 MW Coal
Expected to come up in Twelfth Plan
Jaiprakash Power
Ventures Limited, a
subsidiary of
Jaiprakash
Associates Limited Jaypee Nigri STPP
Nigri village, Tehsil Singrauli, Sidhi district, 1320 MW Coal
Expected to come up in Twelfth Plan
Under Construction
Promoter Company Name of the Project Location
Capacity (MW)
Fuel Type Status
Bina Power Supply
Company Bina TPS Bina 2x500 MW (Planned) Coal
Escrow cover granted; Financial closure not yet achieved.
Moser Baer Power &
Infrastructures Limited Annupur TPP
Anuppur district, Madhya
Pradesh 2000 MW Coal
Expected COD: Phase-I: March 2012, Phase-II: March 2013
Shree Maheshwar Hydel
Power Corporation Maheshwar
HEP Mandaleshwar 10 x 40 Hydel Expected Commissioning: 2011-12
Pench Power Pench TPS Pench
(Chindwara) 2 X 250 Coal Expected Commissioning: 2012-13
SJK Powergen SJK Powergen
Limited Shadol 2 x 500 Coal Expected Commissioning: December 2010
Today Homes and
Infrastructure Pvt. Ltd.
(THIPL)
Today Homes and
Infrastructure Pvt. Ltd. (THIPL)
Narsimhapur, Madhya Pradesh
2 x 600 MW Coal
Expected Commissioning: 2012-13
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11. Chhattisgarh
Proposed Projects
Promoter Company Name of the Project Location Capacity
(MW) Fuel Type Status
Bhilai Engineering
Corporation Limited 2x250 MW BEC Power Project
Champa District, Chhattisgarh 500 MW Coal
Expected to come up in Twelfth Plan
Jain Energy Limited 4x300 MW TPP Korba District, Chhattisgarh 1200 MW Coal
Expected to come up in Twelfth Plan
Jindal Power Limited
(JPL) 4x600 MW TPP Raigarh district, Chhattisgarh 2400 MW Coal
Expected to come up in Twelfth Plan
Akaltara Power Limited -
a subsidiary of PFC 5 x 800 MW Chhattisgarh UMPP
Surguja district, Chhattisgarh 4000 MW Coal
Expected to come up in Twelfth Plan
Essar Power Chhattisgarh
Limited 2 x 600 MW Mahanadi TPP
Champa District, Chhattisgarh 1200 MW Coal
Expected to come up in Twelfth Plan
JSPL (Jindal Steel &
Power Limited)
2x150 MW Meddling and Coal Fine based TPP, Phase-II
Raigarh district, Chhattisgarh 300 MW
Washery middling & coal
fine Expected to come up in Twelfth Plan
RKM Powergen Private
Limited (PPL) 4x360 MW Uchpinda Power Project
Champa, Chhattisgarh 1440 MW Coal
Expected to come up in Twelfth Plan
Vandana Vidhyut Limited Vandana Vidhyut TPP
District- Korba, Chhattisgarh 540 MW Coal
Expected to come up in Twelfth Plan
Under Construction
Promoter Company
Name of the Project
Location Capacity (MW)
Fuel Type
Status
Wardha Power
Company Pvt.
Limited
Wardha Power Company Pvt. Limited
Wardha, Chhattisgarh
2 x 1800 Coal Expected to be commissioned by April 2012
Chhattisgarh Steel &
Power Limited
Chhattisgarh Steel & Power
Limited
Amjhar, Champa-Janjgir, Chhattisgarh 112.5 Coal Under Development
Jindal Power
Limited
4x660 MW Additional Power
Plant
Tamnar, Raigarh (Chhattisgarh)
4x660 (IPP) Coal Under Development
Jain Energy Limited 4x300 MW Jain Energy Limited
Korba, Chhattisgarh 4x300 Coal Under Process
Athena Projects
Private Ltd
Athena Chhattisgarh Power Private Ltd
Raigarh District, Chhattisgarh
1200 (2x600M
W) Coal Under Development Bhilai Power Supply
Company Bhilai TPP Bhillai (Durg) 2 x 287 Coal Financial closure not yet achieved.
Dheeru Power
Private Limited DPPL Korba 500 Coal Expected Commissioning: 2009-10
GMR Energy Limited Proposed by GMR Raipur 1200 Coal
Expected Commissioning: Twelfth Plan
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Iffco Chhattisgarh
Power Limited ICPL Sarguja 1000 Coal Exp Commissioning: 2009-10
Lanco Amarkantak
Power
Lanco Amarkantak Mega TPS (Pathadi) - Phase I
Pithadi village, district Korba 2x300 Coal
Expected Commissioning: Unit- I: May 2009 Unit- II: Dec 2009
Lanco Amarkantak
Power
Lanco Amarkantak Mega TPS (Pathadi) Unit 3 & 4
Pithadi village, district Korba 2x600 Coal
Expected Commissioning: March 2012 (Unit IV)
KVK Power &
Infrastructure
KVK Power & Infrastructure Pvt. Ltd. Akaltara
2 x 600 MW Coal
Expected Commissioning: March 2012
KVK Energy S V Power Pvt. Ltd. Korba
2 x 63 MW Coal COD ( 1st Phase) : 2009
Patni Project Private
Limited Gorra Thermal Power Project Fatehpur
4x135 MW Coal
COD of Unit 1 & 2 is January 2011
RKM Power Project RKM Power Project -
4x350 MW Coal
Financial Closure achieved in April, 2007
Vandana Vidhyut
Limited Vandana Vidhyut Limited Korba 540 MW Coal
COD: Unit I- June : 2010, Unit II- June : 2011, Unit III-IV December : 2012
Korba West Power
Company Ltd.
Korba West Power Company Ltd. Korba 2 x 300 Coal Expected COD: 2011
Visa Power Visa Chhattisgarh Power Project
Raipur, Chhattisgarh 1200 MW Coal Under Proposal
RPG Group Korba (West) TPP (T) Korba West 2 X 260 Coal
Scheme returned on 21.5.97due to pending inputs/clearances.
Operational Projects
Promoter Company
Name of the Project
Locat ion Capacity (MW)
Fuel Type
Status
OP Jindal Thermal
Power Station Raigarh
TPP Raigarh 4 x 250
MW Coal Commissioned Unit I- May 2007; Complete project: 2007- 2008
KVK Energy -- Akaltara 15 MW Biomass Operations Started On December 2005
12. Gujarat
Proposed Projects
Promoter Company Name of Project Location Capacity (MW)
Fuel type
Status
Shapoornji Pallonji
Energy (Gujarat) Pvt Ltd
2x660 MW (Phase-I) Coal Based Super Critical TPP
Junagadh, Gujarat
2x660 MW Imported Coal
Expected to come up in Twelfth Plan
ESSAR Group Limited, Proposed by Vadinar Power Company Limited
Jamnagar, Gujarat
500 / 483 MW
Imported Coal
Expected to come up in Twelfth Plan
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Under Construction
Promoter Company
Name of Project
Location Capacity (MW)
Fuel type Status
Torrent Power
Generation
Limited
Sugen CCPP Akhakhol, District Surat
1147.5 Gas Expected Commissioning: Block I: March 2009 Block II: March 2009 Block III: April 2009
Adani Power Mundra TPP Phase I (Unit 1&2)
Kutch 2x330 Coal Expected Commissioning Unit-1: August 2009 Unit-2: September 2009
Adani Power Mundra TPP Phase I (Unit 3 & 4)
Kutch 2x660 Coal Expected Commissioning Unit 3: February 2010 Unit 4: May 2010
Adani Power Mundra TPP Phase II
Kutch 2x660 Coal Expected Commissioning Unit 1: April 2011 Unit 2: September 2011
Adani Power Mundra TPP Phase III
Kutch 3x660 Coal Expected Commissioning Unit 1: July 2011 Unit 2: November 2011 Unit 3: March 2012
Essar Power Hazira CCGT Hazira 515 + 1500
Naphtha [Phase I] : Financial closure achieved; Commissioned on May 26, 1997 Scheduled Commissioning [Phase II] : Stage I (750 MW) : 27 months from financial closure ; Stage II (750 MW) 36 months from financial closure.
Nirma Chemical
Works Ltd.
Ghogha TPP Ghogha 250 Lignite Foundation stone to be laid after general elections (April-May 2004). No progress reported since 2004.
Essar Energy Vadinar GBPP Vadinar 1200 Refinery Residue
Financial closure yet to be achieved.
Indian Oil
Corporation
Savli Power Project
Savli 500 Refinery Residue
No Progress Reported.
KRIBHCO Pipavav TPP Pipavav 615 Gas Financial closure yet to be achieved.
Reliance Power Jamnagar Petcoke TPP
Jamnagar 2 x 250 Petroleum Coke
The power project has been shelved.
Patni Projects
Private Limited
Bharuch TPP Bharuch 230 Gas Expected Commissioning: October 2008
Pipavav Power
Development
Company
Pipavav Power Project
Pipavav, Gujarat
1000 Coal Expected Commissioning: March 2012
Visa Power Visa Pipav Power Project
Pipav, Gujrat 1000 MW Coal Under Proposal
Operational Projects
Promoter Company Name of Project
Loc ation Capacity (MW)
Fuel type
Status
Gujarat State Energy
Generation Limited
Hazira CCPP Mora near Hazira
156 Gas Commissioned in June 2002
Gujarat Industries Power Com. Baroda CCGT and Surat TPP
Baroda and Surat
160 + 2 x 125
Gas Commissioned on November 18, 1997 and January 16, 2000
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Gujarat Paguthan Energy
Corporation
Paguthan Power Project
Bharuch 654.726 Naphtha
Commissioned on October 13, 1998
13. Maharashtra
Proposed Projects
Promoter Company Name of
the Project Location Capacity (MW) Fuel Type Status
Finolex Infrastructure
Limited, SPV of
Finolex 1000 / 1050
MW TPP
Ranpur, Pawas Bay, Ratnagiri district, Maharashtra
1x1050 MW (Super Critical) OR 2x500 MW (Sub Critical) Coal
Expected to come up in Twelfth Plan
Dhopave Coastal
Power Company
Limited (DCPCL) 1600 MW
TPP
Near Dhopave, Ratnagiri district, Maharashtra 1600 MW Imported Coal
Expected to come up in Twelfth Plan
Maharashtra Airport
Development
Company Ltd &
Abhijeet Group Mihan
Power Plant
Khairi Khurd village, Nagpur district, Maharashtra 123 MW Coal
Expected to come up in Twelfth Plan
Jinbhuvish Power
Generations (P) Ltd 2x270 MW
TPP
Dhanmukh (Bijora) village, Mahagaon Tahsil, Yavatmal District, Maharashtra 540 MW Coal
Expected to come up in Twelfth Plan
Tata Power 1600 MW
TPP
Dehrand/Shahapur, Raigad District, Maharashtra 1600 MW Imported Coal
Expected to come up in Twelfth Plan
Vidarbha Industries
Power Ltd, SPV of
Reliance Power
Limited
300 MW Captive TPP
(Phase-II)
Butibori MIDC, district Nagpur, Maharashtra
300 MW (Phase-II) Coal
Expected to come up in Twelfth Plan
Ind-Barath Power
(Konkan) Limited
Ind-Barath Group
Captive TPP
Dhakur / Ajgaon, Sawanthwadi Tehsil, Sindhudurg district, Maharashtra 1050 MW
Import/Domestic Coal
Expected to come up in Twelfth Plan
Patni Energy Pvt Ltd
(PEPL) Patni Power
Project
Medhekhar village, Taluka Alibag, Raigad district, Maharashtra 405 MW Imported Coal
Expected to come up in Twelfth Plan
Indiabulls Realtech
Limited 5x270 MW
TPP Sinnar SEZ, district Nasik, Maharashtra 1350 MW Coal -
1320 MW Astrac
Power's Supercritical
TPP
2x660 MW Super
critical TPP District - Nagpur, Maharashtra. 1320 MW Coal -
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Under Construction
Promoter Company
Name of the Project
Location Capacity (MW)
Fuel Type
Status
Amravati
Thermal Power
Pvt. Ltd.
Amravati Thermal Power Project
Amravati 2x660MW Coal Financial closure is yet to be Achieved, Likely to be commissioned in XI Plan,
Adani Power Tirora Phase I Tirora, District Gondia
2x660 MW Coal Expected commissioning August 2011
Adani Power Tirora Phase II Tirora, District Gondia
1x660 MW Coal Financial closure not yet achieved. Applied for LT coal linkage for 1200-1250 MW capacity
JSW Energy JSW Energy Ratnagiri TPS
Ratnagiri,Mumbai
4 x 300 MW
Imported Coal
Expected Commissioning: Unit - 1 April 2010 Unit - 2 June 2010 Unit - 3 August 2010 Unit - 4 October 2010
Shalivahana
Constructions
(India) Private
Limited
Shalivahana Constructions (India) Private
Limited
Chandrapur 1 x 270MW Coal Expected Commissioning: 2013
Ideal Projects Private Limited
Ideal Projects Private Limited
Nagpur 2x135MW Coal Expected to commissioning: Phase-I: October 2010 Phase-II: March 2011
Dhariwal
Infrastructure
(P) Limited
Dhariwal Infrastructure Chandrapur
TPP
Chandrapur 2 x 300 MW
Coal Expected Commissioning: Unit-I - June 2011 Unit-2 - March 2012
Operational Projects
Promoter Company
Name of the Project
Location Capacity (MW) Fuel Type Status
Tata Power
Company
Trombay TPS Extension [Unit 8]
Trombay, Mumbai
Unit 8: 250 MW [The site already has a
Total Installed Capacity of 1480
MW]
Imported Coal
Syncronisation: January 14, 2009 CoD: March 29, 2009
Ratnagiri Gas
and Power
Private Limited
(Formerly,
Dabhol Power
Company)
Ratnagiri CCPP Ratnagiri 1480 RLNG / Naphtha
Block II CoD: 1 September, 2007 Block III CoD: 21 November, 2007
79
14. Rajasthan
Proposed Projects
Promoter Company
Name of the Project
Location Capacity (MW) Fuel Type Status
Adani Power
Rajasthan Limited 1320 MW
Project Kawai, district
Baran, Rajasthan 1320 MW Coal Expected to come up in Twelfth Plan
Under Construction
Promoter Company
Name of the Proje ct Location Capacity (MW)
Fuel Type
Status
Neyveli Lignite
Corporation Barsingsar Lignite TPP Barsingar (Bikaner) 2 X 125 Lignite
Expected Commissioning: January 2010
Raj West Power Jallipa Kapurdi TPP Barmer 8 x 135 =
1080 Lignite Expected commissioning October 2010
Raj West Power Jallipa Kapurdi TPP Barmer 2 x 135 = 270 Lignite Expected commissioning January 2013
RPG Dholpur Power Company Dholpur CCGT Dholpur 702.7 Gas
Projects development stands closed.
LNJ Bhilwara Group
Coal based Thermal Power Plant
Mordi, District Banswara 23 MW Coal Status Unavailable
Bhagat Power Kershorai Patan Power
Project Kershorai
Patan 100 Status Unavailable Bhiwadi Generation Company Alwar Power Project Alwar 100 Status Unavailable
British Power Industries
Chittorgarh Power Project
Chittorgarh, Bhilwara, Udaipur,
Rajsamand, Banswara 5 x 100 Status Unavailable
Chambal Power Kershorai Patan Power
Project Kershorai
Patan 166 Status Unavailable DLF Power Barmer Power Project Barmer 2 x 125 Status Unavailable
Euro Power Consortium India
Chittorgarh Power Project
Chittorgarh, Hanumangarh,
Bhilwara 5 x 100 Status Unavailable Indo Cal Power Ventures Jodhpur Power Project Jodhpur 100 Status Unavailable Jalipa TPP Jalipa Power Project Jalipa 900 Status Unavailable Jodhpur Electric Power Jodhpur Power Project
Jodhpur, Banswara 2 x 75 Status Unavailable
Kapurdi TPP Kapurdi Power Project Kapurdi 600 Status Unavailable Peeraj Power Generation
Sriganganagar Power Project Sriganganagar 150 Status Unavailable
Poysha Power Projects Alwar Power Project Alwar 50 Status Unavailable Vardhan Infrastructure Ltd Abu Power Project Abu 100 Status Unavailable
80
15. Orissa
Proposed Projects
Promoter Company Name of the
Project Location Capacity
(MW) Fuel Type Status
Visaka Thermal
Power Pvt Ltd 3 x 350 MW TPP
Near Ampor village, Banta Tehsil, Bhadrak District, Orissa 1050 MW Coal
Expected to come up in Twelfth Plan
FACOR Power Ltd 1x45 MW TPP Randia, district Bhadrak, Orissa 45 MW Coal
Expected to come up in Twelfth Plan
Bhushan Energy Ltd 2000 MW TPP Ghantigadia / Nuahata village, Angul district, Orissa 2000 MW Coal
Expected to come up in Twelfth Plan
Under Construction
Promoter Company Name of the
Project Location Capacity
(MW) Fuel Type Status
Bhushan Energy Ltd Bhushan Angul TPP
Ghantigadia district Angul
2000 Coal Financial closure not yet achieved
CESC Ltd CESC Dhenkanal TPP
Neulapoi , Dhenkanal
1000 Coal Financial closure not yet achieved.
Essar Power Ltd Essar Talcher TPP Talcher, Angul 1000 Coal Financial closure not yet achieved.
GMR Orissa GMR Orissa TPP Dhenkal District in Orissa
1050 Coal Expected Commissioning in February 2012
Kalinga Power
Corporation
Dubri TPP Duburi 2 x 250 Coal Financial closure not yet achieved.
KVK Nilachal Power
Private Ltd
KVK Nilanchal TPP Kandarei, Cuttack 4x350 MW Coal Expected Commissioning: December 2011
Jindal India Thermal
Power Limited
Jindal Angul TPP District Angul, Orissa
2 x 600 MW
Coal Unit-I: Sept. 2011 Unit-II: March 2012
Lanco Babandh
Power Private Ltd
Babandh TPP Babandh, District Dhenkanal, Orissa
Phase I : 2 x 660 MW
Phase II : 2 x 660 MW
Coal Unit-I COD in Quarter Fourth of 2011, within 11th Plan (Anicipated)
Lanco Group Lanco Dhenkal TPP
Kurunti & Kharagprasad
village, Dhenkanal district, Orrisa
2x660 Coal Mar-12
Navabharat Power
Private Limited
Malaxmi Mega Thermal Power
Project - Phase I
Nua-Hata in Angul district
Phase I :1040
Phase II : 1200
Coal Yet to achieve financial closure
Mahanadhi Aban
Power Company Ltd
Mahanadhi Aban Power Project
Talcher village of Angul District in
Orissa
1030 Coal Yet to achieve financial closure
Monnet Power Co.
Ltd
Monnet Angul TPP Malibrahmani, District Angul,
Orissa
3x335 MW Coal Expected commissioning by September 2011
81
Reliance Energy
Limited
Hirma Power Project
Hirma 6 x 660 Coal Financial closure not yet achieved.
Sterlite Energy
Private Limited
Sterlite TPP Jharsuguda 2400 Coal Financial Closure Achieved in July 2006. Commissioning expected within XI plan
Tata power
Company Ltd
Naraj TPP Naraj Marthapur, Cuttack
2000 MW Coal Financial closure yet to be achieved.
Visa Power Visa Power Cuttack TPP
Cuttack, Orissa 1000 MW Coal Financial closure yet to be achieved.
16. Uttar Pradesh
Under Construction
Promoter Company Name of the Project
Location Capacity (MW)
Fuel Type
Status
Reliance Energy Ltd Rosa TPP Phase I Shahjahanpur 600 Coal Expected Commissioning: June 2010
Reliance Energy Ltd Rosa TPP Phase II Shahjahanpur 600 Coal Expected Commissioning: July 2011
Reliance Energy Ltd Dadri CCPP Dadri 7480 Gas Expected Commissioning: 2011-12
Lanco Anpara Power
Pvt Ltd
Anpara ‘C’ TPP Anpara 2 x 600 Coal Expected Commissioning: Unit-I: June, 2011 Unit-II: August, 2011
Jawaharpur Power Etah TPP Etah 2 x 400 Coal Scheme returned on August 31, 2001. No progress reported.
Modi Mirrless
Blackstone
Ghaziabad Power Project
Ghaziabad 100 Naphtha No Progress Reported.
Indian Power
Partners
Chandausi Power Project
Chandausi 100 Naphtha No Progress reported.
Wasan Power Kosi Kalan Power Project
Kosi Kalan 355 Naphtha No Progress Reported
Indian Oil Corporation Kosi Kalan Power Project
Kosi Kalan, Mathura
110 -- Project has been scrapped.
17. Uttaranchal
Under Construction
Name of the Project
Promoter Location Capacity (MW)
Fuel Type
Status
Alaknanda
Project
GMR Chamoli district of Uttaranchal
140 MW Hydel Exp commissioning: 2011-12
Jaiprakash
Vishnuprayag TPP
Jaiprakash Vishnuprayag 4 x 100 MW
Hydel CoD Ut I: Apr’06 Ut II: Jun’06 Ut III: Aug’06 Ut IV: Oct’06
82
Shrinagar
Hydroelectric
Project
GVK Uttrakhand 330 MW Hydel Expected Commissioning Schedule: Unit I: July 2011 Unit II: August 2011 Unit III: September 2011 Unit IV: October 2011
Duncan's
Alakhnanda HEP
Duncans North Hydro Power Company
Paun Garhwal 5 x 66 Hydel Financial closure not yet achieved;
18. West Bengal
Under Construction
Promoter Company Name of the Project
Location Capacity (MW)
Fuel Type
Status
CESC Ltd Budge Budge TPS Stage III
South Parganas
250 Coal Expected to be commissioned by Sept ‘09
Balagarh Power Company
Ltd
Balagarh TPS Balagarh (Hoogly)
500 Coal Financial closure yet to be achieved.
Indian Oil Corporation Haldia Power Project
Haldia 700 Refinery Residue
Most likely Shelved
Gouripore Power Company Gouripore TPP Gouripore 150 Coal Shelved.
19. Arunachal Pradesh
Under Construction
Name of the Project
Location Capacity (MW)
Fuel Type
Status
Demwe Lower Lohit District 1630 MW Hydel Invited EOI for executing project
Talong Seppa district on River Kemeng 160 MW Hydel Expected commissioning: 2011
20. Assam
Project Prom oter Location Fuel Type Status Adamtilla Gas Based Power Plant
DLF Power Cachar Naptha Commissioned
Banskandi Gas Based Power Plant Cachar Naptha Commissioned
21. Punjab
Promoter Company
Name of the Project Location Capacity (MW)
Fuel Type
Status
GVK Power and
Infrastructure Ltd
Goindwal Sahib Thermal Power Project
Gowindwal Sahib, Taran Taran district
2 x 270 Coal Financial closure not yet achieved;
83
22. Goa
Under Construction
Promoter Company
Name of the Project
Location Capacity (MW)
Fuel Type
Status
Reliance
Energy Goa Power Station Sancoale,
Zuarinagar, Goa 52 Gas / Naptha
Expected to come up in Twelfth Plan
Reliance Reliance Energy's Goa Power Station
Zuarinagar 48 Naptha Financial closure achieved; Commissioned on 06.07.1999.
Goa Energy
Pvt. Ltd.
WHR Power Plant Amona, Navelim 30 Gas Orders for all the BOPs have been placed except Aux. Cooling Water Heat Exchanger, Compres sed Air System, & DG Set