Many don’t have power in ‘power-surplus India’
In India, 300 million people don’t have access to electricity, power cuts are rampant and per capita power consumption is significantly lower than the world average. In sharp contrast to this, the Power Ministry says India is power-surplus. “India is likely to experience the energy surplus of 1.1 per cent in 2016-17,” says the Load Generation and Balance Report (LGBR) 2016-17 of the Central Electricity Authority (CEA), which functions under the Power Ministry. Surplus or deficit is determined by calculating the difference between the demand for power and availability. It is the definition of “demand” that lies at the base of this paradox. ‘Real demand’ “While calculating power demand, only people who are connected to the grid and have access to electricity at present are taken into consideration,” S.D. Dubey, Chairperson of the CEA, told The Hindu. The “real demand” that encompasses all citizens would be known only when India achieves the goal of ‘Power for All’, towards which the government is actively working, he says. Taking this definition into consideration, there has been a significant improvement. The deficit has gradually reduced from 11 per cent in 2008-09 to 2.9 in 2015-16 and for the first time, there will be a surplus in 2016-17. But if there is surplus power, why do we have power cuts? “State discoms are unable to buy electricity due to poor financial health. There is unused power lying in the grid,” Mr. Dubey said. Transmission and distribution constraints are also responsible for power cuts. To solve this problem, the government launched the Ujjawal Discom Assurance Yojana (UDAY) in November 2015. By operational and financial turnaround of discoms, UDAY is expected to facilitate reliable, adequate and sufficient power supply to consumers, among other things. The state of power in the country is best captured by looking at the per capita power consumption. On an average, in 2015-16, the per capita consumption in India was 1,070 kWh, less than the world average of 3,026 kWh, as per data from the International Energy Agency. It is also the lowest among BRICS nations. The low per capita consumption is mainly due to a large population, a low per capita income and a huge population not having access to electricity. Note that six States — Madhya Pradesh, Kerala, Odisha, Sikkim, Mizoram, Tripura — will be power-surplus in 2016-17 but the per capita availability in the States is lower than the national average. Overall, as per LGBR, 17 States will have power-surplus in 2016-17. Power demand for India grew by 6.6 per cent in 2014-15 and 4.2 per cent in 2015-16. In the last two years, Bihar — which has the lowest per capita power availability, witnessed the highest percentage growth, with demand increasing by around 25 per cent in both years. This is indicative of more people getting connected to the grid, the official said. To meet the growing demand for electricity, the government is increasing the installed generation capacity as well. “We hope to be power-surplus even when all Indians will have access to electricity,” Mr. Dubey said. Dennis Maruk Jersey
Power generation target for SJVN 8,700 mn units for 2016-17
Power generationtarget of 8,700 million units has been fixed for Sutlej Jal Vidyut Nigam (SJVN) forFY 2016-17. As per the Memorandum of Understanding (MoU) signed between Union Power ministry and SJVN, the expected revenue from operations has been pegged at Rs 2,300 crore while the profit before taxhas been assessed at Rs 1,050 crore from its 1500 MW Nathpa Jhakri Hydro Power Station, 412 MW Rampur Hydro Power Station in Himachal Pradesh and 47.6 MW Khirvire Wind Power Project in Maharashtra. TheMoU was signed betweenPradeep Kumar Pujari, Secretary (Power), Government of India and R N Misra, CMD, SJVN. Ozzie Newsome Authentic Jersey
‘Cancel power plant contracts’
The YSRC has criticised the government for “breaching” the set norms in allowing power plant contracts to favour a few. The government was adopting a tailor-made system by paying exorbitant rates and opting for power generation though there was no immediate need for additional power. “This could well be a major scandal. We demand that the government terminate the contracts and order an inquiry into the award of power plant contracts,” YSRC MLA and PAC chairman B. Rajendranath Reddy said. The scope for corruption was evident from the clearances given to two power plants with an estimated Rs. 6 crore per megawatt. Authentic Jersey
Bangladesh and India sign agreement for joint coal fired power plant
Bangladesh and India today signed a landmark deal for the construction of a 1,320 megawatt coal fired power plant, the biggest project under bilateral cooperation that would mark the transition from electricity export to generation level. Bangladesh-India Friendship Power Company (Pvt) Limited (BIFPCL), the joint venture enterprise inked the deal with Bharat Heavy Electricals Limited (BHEL), which was selected under an open international tender for constructing the super thermal plant at Bangladesh’s southwestern Rampal near the Sundarbans. India’s Exim Bank will provide $1.49 billion for the project, scheduled to start generating power in 2019. “This ceremony marks the beginning of the biggest project under Bangladesh-India cooperation,” state minister for energy and power Nasrul Hamid said. The deal came amid concerns by environmental groups that the the plant could affect the delicate ecosystem of the world’s largest mangrove forest, spreading over both Bangladesh and India. Speakers, including Prime Minister Sheikh Hasina’s energy affairs adviser Toufiq-e-Elahi Chowdhury and her principal secretary Abul Kalam Azad negated the environmentalists concerns saying the world’s most efficient and environment- friendly technology was being used to set up the plant. “We have a coal-powered plant at (northwestern) Barapukuria in a crowded location which is not affecting the environment while the technology being used for the Rampal plant is far more modern and most environment friendly (than that of Barapukuria),” Azad said. BIFPCL managing director Ujjwal Kanti Bhattacharya said, “We respect the concern of the people of Bangladesh, we are set to maintain the maximum environmental standards for the plant”. Indian High Commissioner Harsh Vardhan Shringla, Bangladesh’s power secretary Monowar Islam and his Indian counterpart Pradeep Kumar Pujari, Bangladesh Power Development Board (BPDB) chairman M Shamsul Hasan Miah and BHEL’s general manager Prem Pal Yadav also addressed the ceremony. Bangladesh earlier earmarked Maitree Super Thermal Power Project as one of its fast-track projects, which was started under a bilateral agreement signed during Prime Minister Hasina’s India visit in 2010. Willie Roaf Womens Jersey
Adani to supply 1600-Mw power to Bangladesh from Jharkhand project
Adani Power (Jharkhand) would supply 1600-Mw power to Bangladesh from the proposed plant coming up in Godda district. The company had inked an agreement with government of Jharkhand in February for setting up the power plant. As per the state’s policy any company setting up power project has to supply 25 per cent power to the state, a part of it at a rate fixed by the regulatory body and another at variable cost. Adani Power requested the state government to amend the norms of the agreement and allow the company to supply 25 per cent power to the state from sources other than the project. The company cited the agreement it had reached with the Bangladesh authorities for supplying power. A Memorandum of Understanding (MoU) was signed by Adani Power and Bangladesh Power Development Board (BPDB) in August 2015 after a joint declaration was issued during Prime Minister Narendra Modi’s visit to Dhaka in June 2015. As per the MoU, the entire production from the 2×800-Mw project would be supplied to Bangladesh The supply would be through a dedicated transmission line. The controversial over easing norms for the Adani Group cast shadow on the project. The Opposition had contested that the state government should not ease the norms and allow the company to provide 25 per cent of the installed capacity of power to the state from alternative sources and not from the proposed plant. The company official refused to comment on the issue. The state government had agreed to the company’s request to supply 25 per cent of the installed capacity to Jharkhand from alternate sources at a tariff determined by Jharkhand State Electricity Regulatory Commission (JSERC). The state would be getting 400-Mw power from the alternate source. “The state government had allowed Adani power to supply 25 per cent power from alternate source,” state’s Industry Secretary Sunil Barnwal said. The state would be getting its share no matter what the source would be, he added. The decision of the state government had paved way for the company to supply the entire power generated from the Jharkhand project to Bangladesh. The project is in the initial stage as the land acquisition has been in progress. Brendan Smith Authentic Jersey
Major power outages expected as gencos default on payments
There is a possibility of major power cuts in the Capital, especially in posh Central Delhi as well as areas in the north, after generation in three gas-based power stations is on the brink of being shut as GAIL (India) Limited has threatened to stop supplying gas over non-payment of dues. Instead of the discoms, the city’s two generation companies (gencos) — entities of the Delhi government — have been found to be repeatedly defaulting in payments. Rs. 700 crore in dues In a stern letter to the city’s two gencos — Pragati Power Corporation Limited (PPCL) and Indraprastha Power Generation Company Limited (IPGCL) — GAIL (India) Limited has asked them to pay their dues that run up to nearly Rs. 700 crore. “Despite our various communications, PPCL/IPGCL has failed to submit LC (letter of credit) of requisite value in terms of the provisions of the GSAs/GSTCs (Gas Sale Agreements/Gas Sales and Transportation Contract),” read the letter sent to the general manager (technical) of PPCL. The letter dated July 6 further gave the two gencos a week’s time to make the complete payments “failing which GAIL will be compelled to stop gas supply,” it stated. Blame game However, the two gencos and the government blamed the non-payment of dues on the discoms. “How can the gencos pay to the gas supplier if they do not receive the money from the discoms? Yet, the issue will be sorted out within three-four days. We are diverting the subsidy money to the gencos to make further payments to GAIL. Other options like taking a loan from Power Finance Corporation (PFC) is also being considered,” said Sukesh Jain, principal secretary (power). The Tata Power Delhi Distribution Limited (TPDDL) is supposed to pay about Rs. 230 crore to PPCL and the matter is also being heard by power regulator (DERC). The BSES Rajdhani and Yamuna (BRPL and BYPL) together owe about Rs. 400 crore. “We have no due left on PPCL and have already sent a letter of reconciliation to them. We are yet to hear back. We had made extra payments to them and have asked to adjust the same in accordance with the tariffs set by DERC,” said Praveer Sinha, Managing Director of TPDDL. The BSES discoms said that compared to its regulatory assets of over Rs. 16,000 crore, the company owes only around Rs. 1,700 crore to the Delhi gencos. “The payment of dues to power utilities by BSES discoms is subjudice in the Supreme Court,” said a BSES spokesperson. Bradley Chubb Authentic Jersey
Delhi Government Approves Proposal to Continue 50% Subsidy on Power Bills
Delhi government on Monday approved a proposal to continue 50% subsidy on electricity bills in the national capital. The government’s move came after the Finance Department advised it to approve the subsidy proposal in the Cabinet following which it would “legally” be able to release the amount to be incurred on subsidy to the discoms in the current financial year. The decision was taken in a Cabinet meeting chaired by Chief Minister Arvind Kejriwal at Delhi Secretariat. Sources said the Cabinet approved the proposal to shell out about Rs 1,600 crore on the power subsidy to be given to discoms in the current financial year. In the Budget in March, Delhi Deputy Chief Minister and Finance Minister Manish Sisodia had announced that the AAP government would continue to give 50% subsidy scheme on electricity bills in the 2016-17 financial year as well. In February, the Delhi Cabinet had also decided to extend the power subsidy scheme to domestic consumers using up to 400 units per month to the New Delhi Municipal Council (NDMC) area. As per the scheme, all the consumers whose monthly power consumption do not exceed 400 units get 50% subsidy in tariff and the scheme benefits around 36 lakh or 90% of the consumers in the national capital. During its 49-day stint too, the AAP government had also announced 50% subsidy on power bills following which electricity bills were slashed by 50%. D.J. Augustin Jersey
Centre tells Karnataka to clear land hurdles for Central power projects
The reliability of power supply in Bengaluru and surrounding areas is set to improve in the months to come through reduction in interruptions, as the Union government on Tuesday took the initiative of convincing the State to clear the hurdles for four central transmission projects languishing for years. The State, especially Bengaluru, will get additional power from the Centre after the completion of these Central transmission projects which are struck due to the land-related issues such as want of right-of-way. Union Minister of State for Power, Coal and Mines Piyush Goyal led the initiative by holding day-long consultations with the State government authorities in Bengaluru on Tuesday in a bid to clear the bottlenecks for transmission projects. “The Centre is concerned that people of Karnataka, particularly Bengaluru and neighbouring areas, are still facing frequent interruptions in power supply, when the country has surplus power. This is because the city is unable to get additional power since the process of setting up of five of the new transmission lines connecting it with the grid are pending,” Mr. Goyal later told reporters. Citing an example, he noted that the 400-KV Yelahanka transmission line that got the approval in 2011 was yet to be completed due the lack of right of way for a stretch of just 4.5 km. “The state will get about 600 MW of power after the completion of this project,” he said. Similarly other transmission projects for which the State has committed to remove obstacles include the 400-kv Dharmapuri and Summanahalli transmission line that facilitates flow of power from northern grid to the southern grid; 400-KV Madhugiri-Yelahanka line; and 765-MW Madhugiri-Dharmapuri line. He also announced setting up of Renewable Energy Management Centre in Bengaluru for strengthening the load management and grid connectivity of green energy projects. The minister also assured the state of providing coal linkage to the state’s long-pending project of pit-head power plant to be set up in Chhattisgarh. Pointing out that Karnataka had only partially accepted the Centre’s flagship programme of UDAY (Ujwal Discom Assurance Yojana) — which aims at the comprehensive reforms of the power sector— he said the State would have got benefits to the tune of Rs. 400 to 500 crore if it had accepted the scheme’s financial aspects. Brandon Fusco Authentic Jersey
Jharkhand to hike power tariffs
Jharkhand Urja Vikash Nigam Limited (JUVNL) Chairman-cum-Managing Director RK Srivastava today said electricity tariffs will be hiked to meet required resources for maintaining power supply in the State. During his maiden visit to Dhanbad, Srivastava said the power system was reeling under a pool of problems. “To remove the hurdles and to ensure 24×7 power supply in the State, there is need of resources to improve infrastructure, which can be generated only through enhancing power tariff,” he said. Srivastava said JUVNL purchases power at ?5 per unit and supplies it at ?2.20. Quinton Jefferson Womens Jersey
Reliance Power’s Rs 14,500-crore loan: It’s Goyal vs Goyal on mortgage of coal blocks
Can Reliance Power be allowed to mortgage its coal blocks as collateral for a Rs 14,500-crore loan? The Coal Ministry under Piyush Goyal said no, underlining this would “vitiate the bid document and bidding process”. A week later, the Power Ministry, also under Goyal, said it didn’t share the Coal Ministry’s view. With Coal and Power sticking to their positions, Goyal widened the debate to consider if all captive power projects, not just Reliance, could be allowed to use coal mines as collateral — last Tuesday, the Mines portfolio was also handed to him in the reshuffle of the Council of Ministers. In the first week of June, Goyal directed “whether UMPP (ultra mega power project) or otherwise, the mortgage of mines/ mining lease and whether bidding condition permit, it may be put up to an IMC (inter-ministerial committee) of Power, Coal, Banking and Law under the chairmanship of Power and give its recommendations within 30 days.”