india has the world view on power

8/13/2019 India Has the World View on Power

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Govt needs to work on power sector:ChandrabhanTNNDec 8, 2012, 02.53AM IST

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Vasundhara Raje government| Vasundhara Raje| Gehlot government| Congress| Ashok Gehlot government| Ashok Gehlot

JAIPUR: The Ashok Gehlot government has been unable to meet the power sectordemands in the past four years, stated Congress state president Chandrabhan on Friday.The ruling party chief, a former power minister, said the government needs to takemeasures to bridge the electricity demand-supply gap in the state, especially in the ruralareas.

The Congress president was speaking to reporters on the party's preparations oncompleting four years in Rajasthan on December 13. The organisation has planned talksand discussions on December 12 at its district-level units to highlight the government'sdevelopmental works.

"It is right that there has been a difference between demand and supply in the powersector. The government needs to take measures to fill this gap," Chandrabhan said inresponse to reporters' query. He held both the Centre and the state governmentsresponsible for the failure in generating adequate power in Rajasthan. "Once thebidding process got delayed and the other time coal supply was affected due to Centre'spolicies," Chandrabhan reasoned. "But the Chhabra power plant will soon be functional

which will be a big relief for the people," he added.

Soon after coming into power in December 2008, the Gehlot government accordedhighest priority to the energy sector in the state's annual plans to make Rajasthan self-reliant. It even announced some ambitious projects, especially the three Super CriticalPower Projects in government and private sectors. However, not a single project out ofthe three has been commissioned in past four years.

The previousVasundhara Raje government's five power plants - Suratgarh's sixth unit,Giral, Kota and two units of Chhabra power plant - were commissioned during the ruleof Gehlot government.Eom

Jaipur: TheAshok Gehlot government has been unable to meet the power sectordemands in the past four years, Congress state president Chandrabhan said on Friday.The ruling party chief, who is also a former power minister, said the government neededto take measures to fill the electricity demand-supply gap in the state, especially in therural areas.The Congress president was speaking to reporters on the party's preparations formarking the Gehlot-government's completion of four years in power in Rajasthan on
http://timesofindia.indiatimes.com/topic/Vasundhara-Raje-governmenthttp://timesofindia.indiatimes.com/topic/Vasundhara-Raje-governmenthttp://timesofindia.indiatimes.com/topic/Vasundhara-Rajehttp://timesofindia.indiatimes.com/topic/Vasundhara-Rajehttp://timesofindia.indiatimes.com/topic/Gehlot-governmenthttp://timesofindia.indiatimes.com/topic/Gehlot-governmenthttp://timesofindia.indiatimes.com/topic/Congresshttp://timesofindia.indiatimes.com/topic/Congresshttp://timesofindia.indiatimes.com/topic/Ashok-Gehlot-governmenthttp://timesofindia.indiatimes.com/topic/Ashok-Gehlot-governmenthttp://timesofindia.indiatimes.com/topic/Ashok-Gehlothttp://timesofindia.indiatimes.com/topic/Ashok-Gehlothttp://timesofindia.indiatimes.com/topic/Vasundhara-Rajehttp://timesofindia.indiatimes.com/topic/Ashok-Gehlothttp://timesofindia.indiatimes.com/topic/Ashok-Gehlothttp://timesofindia.indiatimes.com/topic/Vasundhara-Rajehttp://timesofindia.indiatimes.com/topic/Ashok-Gehlothttp://timesofindia.indiatimes.com/topic/Ashok-Gehlot-governmenthttp://timesofindia.indiatimes.com/topic/Congresshttp://timesofindia.indiatimes.com/topic/Gehlot-governmenthttp://timesofindia.indiatimes.com/topic/Vasundhara-Rajehttp://timesofindia.indiatimes.com/topic/Vasundhara-Raje-government


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December 13. The organisation has planned talks and discussions at its district-levelunits to highlight the government's development works on December 12.

"It is right that there has been a difference between demand and supply in the powersector. The government needs to take measures in filling this gap," Chandrabhan said inresponse to reporters' query. He held the Centre and the state governments, both,

responsible for the failure in generating adequate power in Rajasthan. "Sometimes thebidding processes got delayed and at times the coal supply got affected due to Centre'spolicies," Chandrabhan reasoned. "But the Chhabra power plant will soon be functionaland it will be a big relief for the people," he added.

Soon after coming to power in December 2008, the Gehlot government accordedhighest priority to the energy sector in the state's annual plans to make Rajasthan self-reliant. It even announced some ambitious projects, specially the three Super CriticalPower Projects in government and private sectors. However, not a single of the three hasbeen commissioned in past four years.

The previous Vasundhara Raje government's five power plants-Suratgarh's 6th unit,

Giral, Kota and two units of Chhabra-got commissioned during the present Gehlotgovernment's tenure.


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Ills of India's power sector in spotlight afterblackout (2012 in Retrospect)New Delhi, Dec 28 (IANS) The ills of India's power sector came under sharper focus in

2012 due to the worst electricity blackouts for hours on end in July-August, which haltedtrain and Metro services, forced temporary closure of factories, disrupted life in 20 out ofIndia's 28 states and affected some 600 million people.

The outage, which made global headlines and became a matter of embarrassment foran emerging economy, focussed attention on issues such as fuel shortage, caused byfaulty policies on coal mining, the problems on transmission and distribution and themanner in which some states were overdrawing their quota of electricity with impunity tocreate extreme overloading on the transmission infrastructure.

The inquiries on the blackout provoked suggestions that Regional Load DespatchCentres (there are five of them in India which carry electricity from producers to the

users on what are called grids) be given legal powers to be able to protect theirinfrastructure.

The outage also drew attention to India's power distribution firms having accumulatedlosses worth a whopping $40 billion, and needing staggered hikes in tariff to ensuretheir sustainability. Such large losses arose mainly from what distribution companiesterm as aggregate technical and commercial losses, which is more of a euphemism fortheft. Currently cumulative distribution losses amount to Rs.200,000 crore ($36 billion).

"This was a telling commentary on the situation of the power sector in the country," saidChandrajit Banerjee, director general of the Confederation of Indian Industry (CII).

"Losses to business have been in thousands of crores, which pale into insignificancewhen compared to the difficulty that the people of the country have had to face."

As relief to the power sector, the government in September approved the proposal torestructure state electricity companies' (Discoms) debt worth nearly Rs.200,000 crore($36 billion). As part of a scheme for the financial turnaround of Discoms, stategovernments were to take over 50 percent of Discoms' short-term liabilities by way ofspecial securities, repayment and interest payments. The balance 50 percent short-termloans were to be restructured with a moratorium on principal at the best possible termsof interest.

India has a total installed capacity of 209,276 megawatt, with states contributing 41

percent, the central power utilities having a share of 30 percent and the remaining 29percent accounted for by the private sector.

In terms of fuel used, the total thermal capacity is 140,206 megawatt, of which coalaccounts for 120,103 megawatt, gas for 18,903 megawatt, and oil for 1,199 megawatt.This apart, hydro power contributes 39,291 megawatt, nuclear around 4,780 megawattand reneable energy 24,998 megawatt.


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The supply shortfall varies across the country, which becomes acute in states like UttarPradesh, while some others like Gujarat enjoy a surplus and export to other states. Thegovernment estimates the fund requirement of $256.14 billion in the power sector overthe next five years to bridge the existing gap and to meet the growing demand.

According to experts, the basic problem for the power sector is acute fuel (read coal)shortage, affecting electricity generation in the country. It was also the year when stateminer Coal India came under intense scrutiny for its production and off-take.

"Availability of coal and gas is a pre-requisite for spurring investments in the powersector. Reforms that would help make coal and gas available as per the nation'srequirements must no longer be held back," said the Federation of Indian Chambers ofCommerce and Industry.

The state-run Coal India declared it cannot meet the complete coal demand fromindigenous sources till the 13th Five Year Plan beginning 2017. During the 11th Plan,there was a production gap of 140 mt.

The coal sector provoked major political controversy following the national auditor'sreport on how allocation of captive coal blocks to private companies had led to the lattermaking windfall profits.

The Comptroller and Auditor General (CAG) estimated a notional loss of Rs.186,000crore ($33.67 billion) to the exchequer on account of not auctioning coal blocksallocated to private allottees. Tabled in parliament, the report named 25 companiesincluding Essar Power, Hindalco, Tata Power and Jindal Steel and Power, which gotblocks in various states.

In July, the government formed an inter-ministerial group (IMG) to review progress ofcoal blocks allocated to firms for captive use, but which had failed to develop mineswithin the stipulated timeframe. The IMG, after its scrutiny, recommended de-allocationof 11 mines to public sector units, 13 blocks to private firms, and deduction of bankguarantees of 14 allottees.

A total of 58 mines were issued show-cause notices for their failure to develop blockswithin the stipulated timeline.

Coal India agreed to pay a penalty of 1.5 percent to 40 percent on failing to supply thecommitted quantity of coal to power utilities, following protests from major companiesover its decision to go for a paltry penalty of 0.01 percent. The state miner has to meet

80 percent of contracted supply to avoid triggering off penalty.

The new year awaits a pooling formula on prices by combining rates of imported anddomestic coal to offset high import costs. Also awaited are reforms that can improve thesupply of coal for thermal power plants, rationalise tariffs and improve the financials ofstate distribution utilities.

(Biswajit Choudhury can be contacted at [email protected])


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Ills of India's power sector in spotlight

after blackout (2012 in Retrospect)

New Delhi, Dec 28 (IANS) The ills of India's power sector came under sharper focusin 2012 due to the worst electricity blackouts for hours on end in July-August, whichhalted train and Metro services, forced temporary closure of factories, disrupted life in20 out of India's 28 states and affected some 600 million people.The outage, which made global headlines and became a matter of embarrassment foran emerging economy, focussed attention on issues such as fuel shortage, caused byfaulty policies oncoalmining,the problems on transmission and distribution and themanner in which some states were overdrawing their quota of electricity with impunityto create extreme overloading on the transmission infrastructure.The inquiries on the blackout provoked suggestions that Regional Load DespatchCentres (there are five of them in India which carry electricity from producers to the

users on what are called grids) be given legal powers to be able to protect theirinfrastructure.The outage also drew attention to India's power distribution firms having accumulatedlosses worth a whopping $40 billion, and needing staggered hikes in tariff to ensuretheir sustainability. Such large losses arose mainly from what distribution companiesterm as aggregate technical and commercial losses, which is more of a euphemismfor theft. Currently cumulative distributionlossesamountto Rs.200,000 crore ($36billion)."This was a telling commentary on the situation of the power sector in the country,"said Chandrajit Banerjee, director general of the Confederation of Indian Industry(CII). "Losses to business have been in thousands of crores, which pale into

insignificance when compared to the difficulty that the people of the country have hadto face."

As relief to the power sector, the government in September approved the proposal torestructure state electricity companies' (Discoms) debt worth nearly Rs.200,000 crore($36 billion). As part of a scheme for the financial turnaround of Discoms, stategovernments were to take over 50 percent of Discoms' short-term liabilities by way ofspecial securities, repayment andinterestpayments.The balance 50 percent short-term loans were to be restructured with a moratorium on principal at the best possibleterms of interest.India has a total installed capacity of 209,276 megawatt, with states contributing 41percent, the central power utilities having a share of 30 percent and the remaining 29

percent accounted for by the private sector.In terms of fuel used, the total thermal capacity is 140,206 megawatt, of which coalaccounts for 120,103 megawatt, gas for 18,903 megawatt, and oil for 1,199megawatt. This apart, hydro power contributes 39,291 megawatt, nuclear around4,780 megawatt and reneable energy 24,998 megawatt.Thesupplyshortfallvaries across the country, which becomes acute in states likeUttar Pradesh, while some others like Gujarat enjoy a surplus and export to otherstates. The government estimates the fund requirement of $256.14 billion in the
http://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.html


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power sector over the next five years to bridge the existing gap and to meet thegrowing demand.

According to experts, the basic problem for the power sector is acute fuel (read coal)shortage, affecting electricity generation in the country. It was also the year whenstate miner Coal India came under intense scrutiny for its production and off-take.

"Availability of coal and gas is a pre-requisite for spurring investments in the powersector. Reforms that would help make coal and gas available as per the nation'srequirements must no longer be held back," said the Federation of Indian Chambersof Commerce and Industry.The state-run Coal India declared it cannot meet the completecoaldemandfromindigenous sources till the 13th Five Year Plan beginning 2017. During the 11th Plan,there was a production gap of 140 mt.Thecoalsectorprovoked major political controversy following the national auditor'sreport on how allocation of captive coal blocks toprivatecompanieshad led to thelatter making windfall profits.The Comptroller and Auditor General (CAG) estimated a notional loss of Rs.186,000

crore ($33.67 billion) to the exchequer on account of not auctioning coal blocksallocated to private allottees. Tabled in parliament, the report named 25 companiesincluding Essar Power, Hindalco, Tata Power andJindalSteeland Power, which gotblocks in various states.In July, the government formed an inter-ministerial group (IMG) to review progress ofcoal blocks allocated to firms for captive use, but which had failed to develop mineswithin the stipulated timeframe. The IMG, after its scrutiny, recommended de-allocation of 11 mines to public sector units, 13 blocks to private firms, and deductionof bank guarantees of 14 allottees.

A total of 58 mines were issued show-cause notices for their failure to develop blockswithin the stipulated timeline.Coal India agreed to pay a penalty of 1.5 percent to 40 percent on failing to supply thecommitted quantity of coal to power utilities, following protests from major companiesover its decision to go for a paltry penalty of 0.01 percent. The state miner has tomeet 80 percent of contracted supply to avoid triggering off penalty.The new year awaits a pooling formula on prices by combining rates of imported anddomestic coal to offset high import costs. Also awaited are reforms that can improvethe supply of coal for thermal power plants, rationalise tariffs and improve thefinancials of state distribution utilities.(Biswajit Choudhury can be contacted at [email protected])
http://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.htmlhttp://www.newstrackindia.com/newsdetails/2012/12/28/159--Ills-of-India-s-power-sector-in-spotlight-after-blackout-2012-in-Retrospect-.html


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India has the world's best, largest

power grid

The new power minister, M Veerappa Moily in an interview withKavitaChowdhury, talks about the challenges before him and how he intends toaddress those. Edited excerpts:

You have taken charge of the power ministry at a time when thecountry has seen the worst power crises in recent times. Whatare the immediate challenges before you?

Power is a very crucial sector, as it fuels growth; one per cent increase in

power generation leads to one per cent increase in gross domestic product.

For an inclusive economy like India, the power sector needs to keep pacewith the industry's growing demand.

What happened yesterday was the first such case since 2001. As soon I tookover, I promised power supply would be restored at the earliest.

And, now the power situation has stabilised 100 per cent. After all, we theworld's best and largest power grid.

A committee has been constituted to probe the breakdown, and it wouldgive its report in 15 days.

Today, I held a meeting with this committee; it is looking into the causesand remedies. It would also ensure the stabilisation is sustained. Withcomplete confidence, I state such things will not recur.

The secretary in the power ministry would also hold a meeting with powersecretaries of respective states on the same date.

The purpose of the meetings would be to ensure this type of a crisis doesn'trecur.

The state governments and the Centre have to take steps to ensure this. Thesystem has to work complementarily; this kind of debate - state versus stateor Centre versus state - should not be encouraged.


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India Power Awards 2012 confers Anil Sardana,managing director, Tata Power with Leading EnergyPersonality award

Company also conferred Best Fast Track Completed PowerTransmission Projects award

Delhi/Mumbai: Anil Sardana, managing director, Tata Power wasawarded the Leading Energy Personality award in the powergeneration category in the fifth India Power Awards 2012ceremony held at India Habitat Centre, New Delhi.

The annual India Power Awards are envisaged as a systematicand methodical approach to recognise excellence in various

activities for power and energy development. Given the ever-changing and challenging situation that the energy sector facestoday, it becomes imperative to honour those who have excelledin their own capacities.

The Council of Power Utilities (CPU) instituted the India PowerAwards in 2008 for the purpose of identifying and recognising thevery best in the energy Sector. This is the fifth year in successionthat CPU has identified the very best. Every year, CPU and a six-member jury confer these awards to individuals and organisationsfor their exemplary contribution to the energy sector. The jurycomprised the following renowned dignitaries from the power and

energy sector:

Harbans Lal Bajaj, member, Appellate Tribunal forElectricity

P Abraham, former secretary, ministry of power V Raghuraman, former senior advisor- energy,

Confederation of Indian Industry CR Prasad, former CMD, GAIL

HR Sharma, chief technical principal at Hydro TasmaniaConsulting India Pvt. Ltd.

CVJ Varma, President, Council of Power Utilities

This year, the jury unanimously decided to confer the LeadingEnergy Personality (power generation) award to Mr Sardana forhis outstanding contribution to the sector. He was presented theaward by the chief guest, Prof MR Srinivasan, member, AtomicEnergy Commission. The award consists of a certificate, citation,memento and a shawl.

Tata Power also won the Best Fast Track Completed Power


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Transmission Projects award (timely completion of twotransmission projects). The award was in recognition of installationand commissioning of the 250MVA transformer at Dharavi and the90 MVA transformer at Borivali.

- See more at: http://www.tata.com/article.aspx?artid=xUKaNbrpfPY=#sthash.7f6t2Zce.dpuf


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Investments in Indian power sector rising

Private firms invest US$61 billion over four fiscal years.Private sector investments in the power sector have not narrowed down inthe past few years, said Power Minister Jyotiraditya Scindia.

"The projected investments by the private sector during the current fiscalstand at Rs 85,578 crore (US$16 billion)," he said.

Government data show private sector investments of US$10 billion duringfiscal 2009-10, US$16 billion in while in fiscal 2010-11; US$19 billion in

2011-12 and US$16 billion in 2012-13.

India allows up to 100% foreign direct investments in the power sectorunder the automatic route for generation, transmission and distribution.

It also permits the issue of tax-free bonds to finance infrastructure projects.External commercial borrowings (ECBs) to partly finance rupee debt ofexisting power projects are also allowed.

The government has reduced the withholding tax on interest payments on

ECBs from 20% to 5% for three years to provide low cost funds toinfrastructure sectors, including power.

- See more at: http://asian-power.com/power-utility/news/investments-in-

indian-power-sector-rising#sthash.PS0M7RG0.dpuf


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Large thermo-power plants told to use localequipmentVietNamNet BridgeTen local mechanical companies will design and manufacturesupplementary equipment for three large-scale thermal power plants namely Quang

Trach 1, Song Hau 1 and Quynh Lap 1 under the Governments policy.

The Government on November 29 issued the mechanism for pilot of design andproduction of thermoelectric equipment at home in the period from 2012 to 2025. Underthe policy, locally-manufactured equipment for Quang Trach 1 and Song Hau 1 plantswill make up over half of the total value of the supplementary equipment supplied bymechanical engineering companies, while the percentage will be more than 70% forQuynh Lap 1.

Apart from major equipment such as boilers, turbines and generators, supplementaryequipment such as the coal and oil feeding systems, ash and smoke elimination,desulphurization, wastewater treatment and fire control equipment will be produced athome.

Equipment producers include the National Research Institute of MechanicalEngineering, Vietnam Machine Installation Corporation, Machines and IndustrialEquipment Corporation, Vietnam Industrial Construction Corporation, ConstructionMachinery Corporation, and Dong Anh Electrical Equipment Manufacturing Joint StockCompany.

Others in the list of equipment suppliers also include Agriculture and IrrigationMechanization Electrification Construction Corporation, PetroVietnam ConstructionJoint Stock Corporation, PetroVietnam Technical Services Corporation, and Doosan


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Heavy Industry Vietnam.

In addition, enterprises in cooperation with technology universities in Hanoi, Danangand HCMC and the universities with appropriate specialties are encouraged to designand manufacture supplementary equipment for the aforesaid thermal power plants.

The pilot of domestic design and production of thermoelectric equipment is aimed tohelp mechanical manufacturing firms improve their capacity, moving towardstechnological independence, and promote development of the local mechanicalengineering industry.

Speaking to the Daily, Do Huu Hao, chairman of the Vietnam Federation of MechanicalEngineering Associations, said local mechanical enterprises so far had been playing therole of a subcontractor, processing equipment for thermal power projects at home.

If they joined forces, they could produce 60% of the supplementary equipment that local

thermal power plants needed, reducing the dependence on imported equipment, hesaid.

Equipment cost makes up around 70% of the total investment in a thermal powerproject. Raising the localization rate of equipment will offer chances for domesticmechanical manufacturers as Vietnam will have 60 more thermal power plants worthnearly US$100 billion from now to 2030.

Quang Trach 1 thermal power plant with a capacity of 1,200MW is developed byVietnam National Oil and Gas Group (PVN). It will start generating electricity in June2015.

Song Hau 1 thermal power plant is also a project of PVN. It has a capacity of 5,200MWand is now under construction.

Meanwhile, Quynh Lap 1 thermal power plant is designed with a capacity of 600MW. Itsowner is Vietnam National Coal and Mineral Industries Group.

Source: SGT


14/26

Monsoon 30% below: What

government should doLast updated on: July 4, 2012 11:50 IST

Amassive 30 per cent deficiency in the monsoon rainfall in June, coupled with ananticipated low precipitation in September, may add to the government's difficulties inachieving its growth and fiscal deficit targets.

Agriculture may not be the only victim of poor rainfall.

Its contribution to gross domestic product may have dipped to mere 15 per cent but itstill sustains the livelihood of over half of India's population.

Rural income has, in recent years, been seen to impact the demand for two-wheelersand numerous other white goods, which contribute revenue to the exchequer.

On top of that, if the government has to increase its spending on job creation and otherdrought-relief measures, which seems quite likely, the fiscal deficit will further worsen.

Equally worrisome are the prospects of further food inflation, which is already in doubledigits.

Of course, it is perhaps premature to view the first month's dismal performance of themonsoon as a harbinger of a full-blown drought -- for which July rainfall would really bea deciding factor -- but its possibility in some areas cannot be ruled out.

Most weather prediction models used by global weather-watch agencies foresee normal

rainfall only in north-eastern India and, to some extent, in parts of southern India,especially along the western coast.

The rest of the country, including northern, central and western India, is projected toreceive below-normal rainfall, the likely worst affected being Rajasthan and Gujarat.

Predictably, the India Meteorological Department does not fully endorse this prognosis.

Nevertheless, it concedes that September rainfall could be hit because of the likelyemergence of the east Pacific Ocean temperature anomaly, popularly called El Nino, andthat the north-western region may get below-par rainfall.

Crop output there might not suffer much, as the grain belt is heavily irrigated.

But the increased use of diesel to run pump sets in the absence of regular power supplyin this region and elsewhere in the country is bound to swell the overall diesel subsidybill.

Worse, it will further lower the already rapidly receding water table in most states.


15/26

Equally worrisome is the likelihood of inadequate refilling of the country's 80-oddmajor water reservoirs, where the current water stock is reckoned at just 16 per cent ofthe capacity against 27 per cent at this time last year.

This can adversely hit the production of hydropower and water flows in irrigationcanals.

This apart, the anticipated water stress in central and western India is likely tojeopardise the production of coarse cereals, such as maize, bajra and jowar; oilseeds likesoybean and groundnut; and pulses, notably tur or arhar; and cotton.

Most of these commodities are key contributors to high food inflation.

Thus, the government can ill-afford to be complacent and hope that the IMD'sprojection of overall normal rainfall (96 per cent of the long-term average) would turn

out to be true, normalising the situation.

Though the agriculture ministry claims to have put in place elaborate contingency plans

for saving crops, action on this front alone may not suffice.

Prior planning is also necessary to ward off the impact of low rainfall on other sectors.

Otherwise, India's much-needed economic rebound may remain elusive.

Image:A man holds his umbrella as he crosses a road during rains in New Delhi. A filephoto.Photographs: Mukesh Gupta/ReutersRelated News:IMD,India
http://www.rediff.com/tags/imdhttp://www.rediff.com/tags/imdhttp://www.rediff.com/tags/imdhttp://www.rediff.com/tags/indiahttp://www.rediff.com/tags/indiahttp://www.rediff.com/tags/indiahttp://www.rediff.com/tags/indiahttp://www.rediff.com/tags/imd


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MP sets new milestones in the power sectorTNNDec 28, 2012, 05.49PM IST

BHOPAL: A number of successes have been achieved in the power sector ofthe state during the last 9 years, a government spokesman said here onThursday.

A new record of power supply has also been created. Besides increase intransmission system capacity, losses have also been brought down to alarge extent. A number of schemes have been launched to facilitate farmers.SMS-based service has been started for replacing burnt- up or defectivetransformers.

The spokesman said that call centers have been set up in cities of the statefor registering complaints round-the-clock for the convenience of theresidents. Online bill payment facility and Any Time Payment Machineshave also been introduced.

A new record of power generation was created on December 20, 2012 in thehistory ofMadhya Pradeshwhen 1,813.12 lakh units of power was supplied.Earlier, 1,755.57 lakh units were supplied during Diwali on November 13,2012 which was 16% more than the 1,519 lakh units supplied last year and28% more than the 1,371 lakh units supplied in 2010-11 during the samefestival.The installed power generation capacity of the state has increased to 6069

megawatts. It is 104% more than the 2991 MW installed capacity of the year2003. Installed capacity including the central sector and other sources was4884 MW in the year 2003-04, which has increased to 9548 MW as onMarch 2012. This increase is about 96%.
http://timesofindia.indiatimes.com/topic/Madhya-Pradeshhttp://timesofindia.indiatimes.com/topic/Madhya-Pradeshhttp://timesofindia.indiatimes.com/topic/Madhya-Pradeshhttp://timesofindia.indiatimes.com/topic/Madhya-Pradesh


17/26

Power loans worth over Rs 1,40,000 cr to see debt recast: ICRA

The total exposure to power sector, including discoms, was about of Rs3,80,000 cr

Power Generators

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A deal to restructure loans to financially-troubled power distribution companies(discoms) brought some relief, albeit temporary, to banks in India. But, with delays inexecution and high interest burden, lenders may bear more burden ofdebt recastforpower projects.

Vibha Batra, co-head financial sector rating atICRA,said 40-50% of banking sectorexposure to the power sector may need to be restructured. The total exposure to powersector, including discoms, was about of Rs 3,60,000- 3,80,000 crore. The estimates ofpower recast of over Rs 1,40,000 crore includes loans to discoms.The loans to discoms will have loans lions share in debt recast, power generationprojects facing delays and high interest burden will have substantial share in it.

ICRA said a sizeable chunk of the banking credit to the infrastructure sector (includingpower) is vulnerable due to factors like delays in and sometimes even cancellationsregulatory clearances and licences.

The structurally weak contracts, fuel unavailability concerns, weak counterparties or

stretched payments from state governments and government-owned entities alsocontributed to problems leading to restructuring of loans. Some of the highly leveragedbusiness groups are under stress and could approach banks for loan restructuring.

In the current uncertain economic and business environment, the risks of restructuringloans becoming bad loans were high. ICRA said gross non-performing assets (NPAs) forindustry segment were only 2%. However, share of industry in restructured advancesare 8%. Some of these restructured accounts could slip into the NPA category.

Credit profile of borrowers (power units) may

weaken in FY13* Project implementation related delays

* Reduced profitability of new projects

* Higher interest rates

* Structurally weak contracts and concerns over fuel

linkages

* Lacklustre capital markets may constrain access to
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The NPA percentage in the infrastructure sector (accounts for around 14% of domesticcredit as of June 2012) is only 0.6% as of March 31, 2012.

The tally of standard restructured advances (of system) could move up to Rs 3,70,0004,20,000 crore (6.5-7.5% of advances) by March 31, 2013 from Rs 2,30,000 crore as onMarch 31, 2012.

equity

* Moderation/slowdown in demand conditions


19/26

power sector's shineAgencies| New Delhi | Updated: Dec 21 2011, 13:54 IST

Discoms presented a dismal picture, withprojected losses of Rs 70,000 crore last fiscal. (Reuters)SUMMARY

Fuel scarcity, regulatory inefficiency and fundspaucity hurt discoms and sector at large.

Saddled with shortages, the power sector lost its promised sheenthis year as fuel scarcity, regulatory inefficiency and funds paucityushered in developmental gloom. With a forgettable 12 monthscoming to a close, what remains are hopes of "reforms andrestructuring" in the power sector in 2012.From delays in the flagship Mundra UMPP and other projects to

bleeding power distribution companies (discoms) hurting lenders,a persisting uncertainty has also hurt investment flows into thesector.Besides fuel shortages, political and business sensitivity on theissue of tariff hikes as well as the proposal to impose duty onimported power equipment, especially from China, contributed tothe uncertainty.Nevertheless, 2011 began on a relatively positive note, with PowerFinance Corp's stake sale mopping up over Rs 1,145 crore. Butthen, a raft of negative news began to trickle in, including priceyfuel posing the proposition of a Rs 500 crore annual loss for theMundra UMPP in the first year of operations.Discoms presented a dismal picture, with projected losses of Rs70,000 crore last fiscal. The high-level Shunglu Committee has
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20/26

come out with a slew of suggestions to absorb their losses, such ascreation of a Special Purpose Vehicle (SPV).All these factors have hurt overall investment flows into the powersector, especially in the second half of 2011, according to experts.

"This was the year when all the risks, mainly coal shortages,surfaced, affecting many projects. There were regulatory, policyand investment hurdles, among others. The power sector seems tohave almost hit the bottom in 2011," said Salil Garg, the Directorof ratings agency Fitch's Asia-Pacific Utilities team."Next year, we expect to see restructuring and reforms happeningin the power sector," he added.Eyeing 9 per cent economic growth, the country is well short of

meeting its power capacity addition plans. The target of 17,601MW for the current fiscal, ending March next year, is unlikely tobe achieved, thanks to slippages and shortages.Depending mostly on thermal plants for energy, inadequateavailability of coal has been a recurring theme in the Indian powersector. The problem has been accentuated by environmentalhurdles


21/26

Pvt investment in power sectorestimated at Rs85,578cr in FY13

Agencies: New Delhi, Thu Dec 13 2012, 18:31 hrs

Private sector investment in the power sector is estimated at Rs 85,578 crore in this fiscal,Power Minister Jyotiraditya Scindia has said.

As per official figures, Rs 56,476 crore worth of funds were pumped in by the private sectorduring 2009-10, while in 2010-11, Rs 86,646 crore were invested by private companies.

The investment was Rs 1,06,975 crore in 2011-12.

"Private sector investment in the power sector has not narrowed down in the last few years,"Scindia said in a written reply to the Lok Sabha today.

"The projected investments by the private sector during the current fiscal stand at Rs 85,578crore," he said.

Up to 100 per cent foreign direct investment (FDI) is permitted in the power sector under theautomatic route for generation, transmission and distribution, he added.

"The government has allowed issue of tax-free bonds for Rs 60,000 crore to financeinfrastructure projects, which include Rs 10,000 crore for Indian Railway Finance Corporation,India Infrastructure Company and power sector," he added.

External commercial borrowings to part finance rupee debt of existing power projects is alsoallowed.

The government has reduced the rate of withholding tax on interest payments on ECBs from 20per cent to 5 per cent for three years to provide low cost funds to infrastructure sectors includingpower.
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22/26

Scarcities dim power sector's shineAgencies| New Delhi | Updated: Dec 21 2011, 13:54 IST

Discoms presented a dismal picture, withprojected losses of Rs 70,000 crore last fiscal. (Reuters)SUMMARY

Fuel scarcity, regulatory inefficiency and fundspaucity hurt discoms and sector at large.

Saddled with shortages, the power sector lost its promised sheenthis year as fuel scarcity, regulatory inefficiency and funds paucityushered in developmental gloom. With a forgettable 12 monthscoming to a close, what remains are hopes of "reforms andrestructuring" in the power sector in 2012.From delays in the flagship Mundra UMPP and other projects to

bleeding power distribution companies (discoms) hurting lenders,a persisting uncertainty has also hurt investment flows into thesector.Besides fuel shortages, political and business sensitivity on theissue of tariff hikes as well as the proposal to impose duty onimported power equipment, especially from China, contributed tothe uncertainty.Nevertheless, 2011 began on a relatively positive note, with PowerFinance Corp's stake sale mopping up over Rs 1,145 crore. Butthen, a raft of negative news began to trickle in, including priceyfuel posing the proposition of a Rs 500 crore annual loss for theMundra UMPP in the first year of operations.Discoms presented a dismal picture, with projected losses of Rs70,000 crore last fiscal. The high-level Shunglu Committee has
http://www.financialexpress.com/columnist/agencies/1http://www.financialexpress.com/columnist/agencies/1http://www.financialexpress.com/columnist/agencies/1


23/26

come out with a slew of suggestions to absorb their losses, such ascreation of a Special Purpose Vehicle (SPV).All these factors have hurt overall investment flows into the powersector, especially in the second half of 2011, according to experts.

"This was the year when all the risks, mainly coal shortages,surfaced, affecting many projects. There were regulatory, policyand investment hurdles, among others. The power sector seems tohave almost hit the bottom in 2011," said Salil Garg, the Directorof ratings agency Fitch's Asia-Pacific Utilities team."Next year, we expect to see restructuring and reforms happeningin the power sector," he added.Eyeing 9 per cent economic growth, the country is well short of

meeting its power capacity addition plans. The target of 17,601MW for the current fiscal, ending March next year, is unlikely tobe achieved, thanks to slippages and shortages.Depending mostly on thermal plants for energy, inadequateavailability of coal has been a recurring theme in the Indian powersector. The problem has been accentuated by environmentalhurdlesand soaring international fuel prices.A combination of inclement weather and the Telangana agitation

in the latter part of this year resulted in a steep fall in coalproduction that even snapped power supply to some states. Goingby Central Electricity Authority data till December 11, as many as46 thermal power stations nationwide have only seven days ofcoal supply stocks.Despite multiple ministerial panels and high-level panels lookinginto various issue concerning the sector, the regulatory regimevirtually hampered progress, as visible in the inordinate delay in

the launch of the second round of bidding for the 4,000-MWBedabahal Ultra Mega Power Project (UMPP) in Orissa.The standard document for bids is being reworked, mainly to havebetter clarity on tariffs against the backdrop of soaring coal prices.In addition, two of the already awarded UMPPs -- Mundra, inGujarat, and Krishnapatnam, in Andhra Pradesh -- are faced with


24/26

the prospect of higher fuel prices making them commerciallyunviable at the moment.Even though, private power producers including Reliance andthe Tatas -- are pitching for higher electricity tariffs for their

upcoming projects to balance pricier fuel, an immediate solutionis not in sight.In addition, the UMPPs also came under the scrutiny of the CAG,which found certain discrepancies in the award of these projects,especially the Sasan project in Madhya Pradesh. The project drewflak from the CAG over diversion of surplus coal from the plant'scaptive mine to another same-size plant in the state.An Empowered Group of Ministers suggested seeking the

Attorney General's opinion on the issue. Power FinanceCorporation, which is the nodal agency for UMPPs, had preparedthe bid documents for this project, which was awarded in 2007.The CAG reportedly said the excess coal from the mines allotted tothe Sasan project cannot be used for another project.Adding to the woes, many discoms were short of cash to pay forpower purchased from entities such as state-run NTPC. At leasttwice this year, the country's largest power producer NTPC hadserved notices to Delhi discoms -- BSES Rajdhani and BSES

Yamuna -- for non-payment of dues.of the discoms stood at a staggering Rs 1,79,000 crore beforesubsidy during the 2006-10 period.The poor financial health of the discoms also set off alarm bells inthe banking sector, with reports suggesting that many financialinstitutions have become extremely cautious in lending to thepower sector. Official data revealed that public sector banks hadextended loans of more than Rs 2.97 lakh crore to the power

sector at the end of September quarter.Estimates showed that the losses of power entities in the states ofRajasthan, Tamil Nadu, Madhya Pradesh, Uttar Pradesh andBihar alone accounted for over 70 per cent of the overall lossincurred by state power utilities in the 2010 financial year.


25/26

While the delays and financial headaches play out, a tussle isintensifying between the government and private powerproducers over the proposal to slap 14 per cent duty on importedequipment.

As the 14-member Association of Power Producers put it, "Thepower sector in the country is passing through a very challengingphase with significant headwinds..."Entering 2012, there are hopes that the sector sees less turbulenttimes.


26/26

States pvt cos beat CPSUs on powergenerationNoor Mohammad|New Delhi | Updated: Jan 04 2011, 04:21 IST

SUMMARYThe central sector, conventionally the leader in Indias powergeneration drive, has been outdone by the states and the private sector bya wide margin in the 11th Five Year Plan so far, an analysis by FE shows.The central sector, conventionally the leader in Indias power generation drive, has beenoutdone by the states and the private sector by a wide margin in the 11th Five Year Planso far, an analysis by FE shows.While central utilities like NTPC, DamodarValley Corporation and NHPC haveperformed badly on capacity addition in thecurrent five year plan, state and privatesector have not only commissioned a large

number of projects but have also announceda series of new projects aimed at rapidlyadding capacity to make the most of presentdeficit situation in the Indian power market.As of November 15, the central sector hadadded just 7,905 MW capacity or 26% of itsinitial target of 36,874 MW.During the same period, state utilitiescommissioned 12,511 MW capacity (46%)against the plan target of 26,783 MW set for them by the Planning Commission. Theprivate sector added 8,945 MW (59%) capacity against its plan target of 15,043 MW.In the 10th Plan, the central sector had added 13,005 MW capacity against the target of22,832 MW (57%). In comparison, state utilities commissioned 6,244 MW against the11,157 MW target while private players added 1,930 MW only against the plan target of7,121 MW. Going forward, the private sector will become a dominant player in the Indian powersector, said Kuljit Singh, partner in global consulting firm Ernst & Young.The largest central power generator NTPC, which was once known for its excellentproject management skills, has been forced to revise its plan target from 22,000 MW to9,920 MW. The PSU capacity addition programme went haywire because of differentfactors.For example, the central sector generator could not start implementation work at 2,600MW capacity expansion projects at Kawas and Gandhar in Gujarat because of non-

availability of natural gas, while 1,980 MW North Karanpura and 600 MW LoahrinagPala projects were scrapped.Commercial dispute with a Russian contractor led to slippage in commissioning of the1,980 MW Barh-1 project in Bihar, which in turn impacted commissioning schedule ofthe 1,320
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