ENERGY

POWER

MoP is responsible for the development of electrical energy in the country. It is

concerned with
o Perspective planning, policy formulation, processing of projects for
investment decisions, monitoring of the implementation of power
projects, training and manpower development and the administration
and enactment of legislation with regard to thermal and hydro
generation, transmission and distribution
o In all technical matter, MoP is assisted by the Central Electricity
Authority (CEA)
The National Electricity Policy (NEP) had stipulated power for all and annual per
captia consumption of electricity upto 1000 units by 2012. Electricity in
Concurrent list.

ULTRA MEGA POWER PROJECTS

Coal based UMPP with each capacity of 4000 MW.

Objective is to ensure cheaper tariffs utilizing economies of scale, catering to the
need of a number of States and to mitigate the risk relating to tie up of land fuel,
water and other statutory clearance etc.
Projects given on basis on competitive bidding route employing super critical
technology.
To tie-up for necessary inputs and clearances such as provisions of site, fuel
through captive mining blocks, water and in-principle environment and forest
clearances, project-specific shell companies (SPVs) are set up as wholly owned
subsidiaries of the Power Finance Corporation Ltd. (PFC)- nodal agency for these
projects.
4 UMPPs
o Sasan in MP
o Mundra in Gujarat
o Krishnapatnam in AP
o Tilaiya in Jharkhand
Bidding Stages- Bedabahal in Sundergarh District, Orissa; Cheyyur in
Kanchipuram district, TN; District Sarguja, Chattisgarh

BY- KAUSHAL KISHORE SHARMA

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DEVELOPMENT OF NATIONAL GRID

Creation of high capacity Transmission Highways so that constraints in Rightof-Way (RoW) do not become bottleneck in harnessing natural resources.
Power Grid is strengthening its transmission network to establish inter-stae and
inter-regional links for enhancing the capacity of National Grid in a time bound
manner to ensure optimal utilization of uneven distribution of energy resources.

RURAL ELECTRIFICATION (RE)

RE under
o
o
o

Minimum Needs Programme (MNP)

Started in 5th FYP with RE as one of the components.
Funds were provided to states in form of partly grants and partly loans.
Areas were remote, far flung and difficult villages with low load
potential.
o Now discontinued and replace by RGGVY.
Pradhan Mantri Gramodaya Yojana (PMGY)
o Implemented by State Electricity Boards/ Electricity Developments/
Power/ Utilities as implementing agencies.
o Discontinued
Kutir Jyoti Scheme
o Provide single point connections to households of rural families below
the poverty line including harijans and adivasi families.
o Allocation based on rural population below the poverty line and level of
village electrification in the state, with higher weightage given to
states having larger population of rural poor and low electrification
levels.
o Merged with RGGVY
Accelerated Rural Electrification Programme (AREP)
o Interest subsidy of 4% was to be provided on loans availed by State
Govt./Power Utilities from Financial Institutions for carrying out rural
electrification programme.
o It was limited to electrification of un-electrified villages, electrification
of hamlets/dalit bastis/ tribal village and electrification of households in
villages through conventional and non-conventional sources of energy
Accelerated Electrification of One Lakh villages and One Crore households
o AREP and Kutir was merged to form this
o Provision for providing 40% capital subsidy for rural electrification
projects and the balance as loan assistance on soft terms from REC
(Rural Electrification Corporation).
o Merged with RGGVY
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

BY- KAUSHAL KISHORE SHARMA

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Achieving National Common Minimum Programme objective of

providing access to electricity to all rural households over a period of
four years. REC is the nodal agency.
Capital subsidy will be provided for rural electrification infra. By Creation of Rural Electricity Distribution Backbone (REDB)
Creation of Village Electricity Infrastructure (VEI)
Decentralized Distribution Generation (DDG) and Supply System
from conventional sources for Villages/Habitations where grids
supply not effective and MoNon-Conventional would provide
electricity.
All states except Delhi and Goa have signed RGGVY.

Major Policies Initiatives to Streamline the Process of Project Development

Policies which have boosted private sector players areo National Electricity Policy; UMPP
o Mega Power Project Policy; Mega Power Policy
o New Hydro Policy 2008

Automatic approval for FDI

Automatic approval for 100% foreign equity is permitted in generation,

transmission and distribution and trading in power sector without any upper
ceiling on the quantum of investment.
Revised FDI cap for Power exchanges registered under CERC Regulations, 2010
as 40 through Automatic route.

Central Electricity Authority (CEA)

Statutory organization constituted under Section 70 of the Electricity Act 2003.

PUBLIC SECTOR UNDERTAKING

NTPC Limited
o Maharatna company, Largest power generator in India with
comprehensive in-house capabilities in building and operating power
projects.
o Core values are business ethics, economical and environment
sustainable, customer focus, mutual respect and trust within org. ,
motivating self and innovation , total quality excellence, transparent
and respected organization.
NHPC Limited
o Schedule A- Miniratna; Largest org. for hydro power development
o Main objects include to plan, promote and organize as integrated and
efficient development of power via conventional and non-conventional
sources in India and abroad plus transmission, distribution, trading and
sale of power generated at stations.

BY- KAUSHAL KISHORE SHARMA

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Power Grid Corporation

o Notified Central Transmission Utility, 1998; Navratna since 2008
o Responsible for establishment of Regional & National Power Grids and
operates through POSOCO, fully owned subsidiary of POWERGRID to
facilate power within and across the regions with realiablity, security
and economy.

Power Finance Corporation

o Enhance funding to power projects in India with objective to provide
financial resources and encourage flow of investments to the power
and associated sectors.
o It is Power Sector Public Financial Institution and NBFC providing funds
and non-fund based support for the development of Indian Power
Sector; Navratna CPSE;
Rural Electrification Corporation
o Financing rural electrification schemes in the country; Navratna
o Include financing of all power projects including Generation,
Transmission and Distribution without any restriction.
o Public Financial Institution and NBFC and RBI categorized as Infra.
Finance Compy (IFC)
Satluj Vidyut Nigam Ltd.
o Joint Venture with GoI and GoHP to plan, investigate, organize, execute,
operate and maintain Hydro Electric Power Projects in Satluj Basin.
o Schedule A Miniratna Category-I PSU under the administrative control
of MoP.
Bhakra Management Board
o Section 79 of the Punjab Re-Organisation Act 1966 for the
administration, maintenance and operation of Bhakra Nangal Project.
o It is responsible for the administration, operation and maintenance of
Bhakra Nangal Project, Beas Satluj Link Project and Pong Dam including
Power Houses and a network of transmission lines and grid
substations.
Beas Management Board
o Involved in Administration, Operation & Maintenance of Bhakra-Beas
Projects.
o Supply of water to Punjab, Haryana and Rajasthan.
National Power Training Institute
o Registered society under MoP
o To development of human resources in the power sector for 4 decades.
o A Geographical Information System (GIS) Resources Centre for Training
and consultancy in the areas of GIS based electricity distribution
network planning and management has been set up at NPTI
Central Power Research Institute

BY- KAUSHAL KISHORE SHARMA

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Registered under Societies Registration Act under MoP, serves as a

national laboratory to carry out applied research in electrical power
engineering.
o Function as an independent national testing and certification authority
for electrical equipment for ensuring their reliability.
North Eastern Electric Power Corporation Ltd.
o Wholly owned Govt. Enterprises under MoP to plan, promote,
investigate, survey, design, construct, generate, operate and maintain
power stations in the north-eastern region.
o

CRUDE OIL AND NATURAL GAS PRODUCTION

Major crude oil production is from ageing field except new fields viz.
Rajasthan and KG deep water blocks.
Production of crude oil was affected due to environmental factors and bandhs
in Assam, delay in production from wells in AnPr, and lesser production from
development/side-track wells in Mumbai, poor influx, underperformance of
producing wells and less base potential of major fields that affected
production of Ahmedabad and Ankleshwar
Lower in Natural Gas dur to less production from KG basins and bandhs and
underperformance of new wells development.

Energy Security

As rise of demand with development and growth, demand management and

increasing production and transportation efficiency are two important
measures to increase energy security.
Domestic resources must be expanded, instead of choosing, try to explore all
available domestic energy resources to the maximum as long as they are
competitive. The most critical elements of our energy security
Remain the measures to increase efficiency, reduce requirements and
augment the domestic energy resource base.

Non-Conventional Energy

Ethanol Blended Petrol (2003)

o Except J&K, NE states, A&NI and Lakshadweep it is done.
o 5% percent mandatory ethanol blending with Petrol is to be
implemented across the country
o Procurement of ethanol pre-decided by Oil Marketing Companies
(OMCs) and Suppliers of Ethanol.
Bio-diesel Purchase Policy (2006)
o MoP&NG launched

BY- KAUSHAL KISHORE SHARMA

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OMCs would purchase bio-diesel, meeting the prescribed BIS standard,

at a uniform price as may be decided by OMCs from time to time, for
blending with High Speed Diesel (HSD) to the extent of 5% at identified
20 purchase centres across the country.

Oil and Natural Gas Corporation Limited (ONGC)

Maharatna Company
Engaged in exploration and production of crude oil, natural gas and valu added
products was incorporated

ONGC Videsh Limited

Engaged in exploration and production of oil and gas outside India.

OVL oil and gas production from 10 projects in 8 countries
o Russia (Sakhalin-1 and Imperial Energy)
o Syria (Al-Furat Petroleum Co.)
o Vietnam (Block 06.1)
o Columbia (MECL)
o Sudan (Greater Nile Petroleum Operating Company)
o South Sudan (Greater Pioneer Operating Company and Sudd Petroleum
Operating Company)
o Venezuela (San Cristobal)
o Brazil (BC-10)

Oil India Limited (OIL)

Govt of India enterprise, engaged in business of exploration, production and

transportation of crude oil and natural gas; Navratna company
OIL own and operate a trunk crude oil pipeline in north east region of the country
for transportation of crude oil to feed Numaligarh, Guwahati and Bongaigon
refineries. It owns and operates a branch line to feed Digboi refinery.

Gas Authority of India (GAIL)

Maharatna company
Natural Gas value chain with global footprints.
Setup LNG import infra. And will be focusing on area like city gas distribution,
petrochemicals business, diversifying into high margin business.

Implementation of BS-III/IV Fuels

Upgrading quality of auto fuels to Bharat Stage (BS) IV/III grades

A BS-IV fuel is based on pollution level and vehicular pollution in the city (1 cr
population +)

BY- KAUSHAL KISHORE SHARMA

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Pricing of Petroleum Products

In June 2006, based on recommendations of the Rangrajan Committee, the Govt.

changed the pricing mechanism for petrol and diesel from import parity to trade
parity (trade parity being the weighted avg. of import and export parity prices in
the ratio of 80:20) while pricing of PDS kerosene and domestic LPG continues on
import parity basis
Govt. took a decision in-principle on June 25,2010 to make the price of diesel
market determined , both at refinery gate and at retail level. RSP of diesel is
blow the required market price, resulting in incurrence of under-recovery to the
OMCs.

Indian Oil Corporation Limited

Flagship National oil company with business interest encompassing the entire
hydrocarbon value chain- from refining, pipeline transportation and marketing of
petroleum products to exploration and production of crude oil and gas,
marketing of natural gas, petrochemicals , renewable energy and now into
nuclear energy.

Hindustan Petroleum Corporation Limited

Mega PSU with Navratna status.

2 refineries in Mumbai and Visakhapatnam, producing petroleum products-fuel,
lubricants and specialty products.
HPCL owns and operate the largest Lube Refinery in the country producing Lube
Base Oils

Bharat Petroleum Corporation Limited

Engaged in refining of crude oil and marketing of petroleum products. It has also
diversified into production and marketing of petrochemical feedstock.
Refinaries in Mumbai and Kochi certified under Integrated Management System
(IMS) which aims for unified approach in processes, interfaces, structures and
documentation system by combining he individual management systems under
ISO 9001, ISO 14001 and OHSAS 18001 reflecting commitment towards quality,
environment, health and safety.

Coal

MoCoal has overall responsibility of determining policies and strategies in

respect og exploration and development of coal and lignite reserves, sanctioning
of important projects of high value and for deciding all related issues.
Coal reserves mainly located in Jharkhand, Odisha, Chhattisgarh, WB, MP, AP and
Maharastra.

BY- KAUSHAL KISHORE SHARMA

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Major deposit of lignite is in TN, other states are Rajasthan, Gujarat, Kerala, J&K
and Puducherry
Coal India limited has 8 subsidiaries; CIL has foreign subsidiary in Mozambique
naming CI Africana Limitada
Neyveli Lignite Corporation Limited (NLC), a Navratna operated 4 open cast
lignite mines.

Power from Renewables

5th in world with wind power installed capacity of 21. The Ministry has taken up a
new inititative for implementation of wind resources assessment in uncovered/
new areas with an aim to assess the realistic potential at 100m level in 500 new
stations across the country under the National Clean Energy Fund (NCEF).
Prospects of offshore wind energy along coastline of AP, Goa, Gujarat, Kerala,
Karnataka, Maharashtra and TN. It is being the fastest growing programme with
the investment almost by the private sector.
Biomass power projects included bagasse cogenerations with an aggregate
surplus power generation capacity of about 412.5 MW have been successfully
commissioned.
Solar power projects using solar photovoltaic and solar thermal technologies.
The NAPCC mandates increasing share of renewable power in the electricity mix
to 15% by 2020.

Policy and Regulatory Framework

Electricity Act 2003, recognize the role of renewable energy technologies for
supplying power to utility grid as well as stand-alone systems.
The Act empowers SERCs to specify a percentage of total consumption of
electricity from renewable energy sources, known as Renewable Purchase
Obligation (RPO).
Preferential tariff for grid interactive renewable power is being given in most
potential states. In addition, Renewable Energy Certificates (RECs) seek to
address the mismatch between availability of renewable sources and
requirement of the obligated entities to meet their RPO.

Incentives

For promoting private investment, govt is providing capital/interest subsidy,

accreted depreciation and nil/concessional excise and customs duties.
Encouraging foreign investors to setup renewable power projects on a BuildOwn and operate basis with 100 % FDI.

Jawaharlal Nehru National Solar Mission (JNNSM)

Mission aims to install 20GW grid-connected and 2 GW off-grid solar power,

20 million sqm of solar thermal collector areas

BY- KAUSHAL KISHORE SHARMA

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20 million rural households to have solar home lighting by year.

To be done in 3 phases , 2013, 2017 and 2022
Reverse bidding process adopted under the mission has led to a significant
reduction n solar power tariff within one and half year of its implementation.

Heat Energy- Cooking Purpose

Family size biogas plants and improved cook-stoves are both used at level of
individual households or the community.
Leading to reduction in drudgery among the rural women and girls engaged in
collection of fuel wood and reduction in the rate of deforestation and getting
many health benefits apart from providing organic fertilizer.
In cook-stoves, the biggest problem relates to inefficient combustion of biomass
and the inability of large number of people to spend money on processed fuels
for improved cook-stoves because traditionally available biomass is generally
free of cost.
Under the National Biomass Cookstoves initiative, a pilot scale project for
deployment for 5500 biomass community cookstoves in Anganwadis, Mid-day
meal scheme, Tribal hostel etc. and demonstration for 15000 of family portable
cookstoves has been taken up.

BY- KAUSHAL KISHORE SHARMA

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