1.

INTRODUCTION

Power is one of the most critical components of infrastructure crucial for
the economic growth and welfare of nations. The existence and
development of adequate infrastructure is essential for sustained growth
of the Indian economy.

India’s power sector is one of the most diversified in the world. Sources of
power generation range from conventional sources such as coal, lignite,
natural gas, oil, hydro and nuclear power to viable non-conventional
sources such as wind, solar, and agricultural and domestic waste.
Electricity demand in the country has increased rapidly and is expected to
rise further in the years to come. In order to meet the increasing demand
for electricity in the country, massive addition to the installed generating
capacity is required.

India ranks third among 40 countries in EY’s Renewable Energy Country
Attractiveness Index, on back of strong focus by the government on
promoting renewable energy and implementation of projects in a time
bound manner.

2.HISTORY

The power sector in India has undergone significant progress after
Independence. When India became independent in 1947, the country had
a power generating capacity of 1,362 MW. Hydro power and coal based
thermal power have been the main sources of generating electricity.
Generation and distribution of electrical power was carried out primarily
by private utility companies. Notable amongst them and still in existence
is Calcutta Electric. Power was available only in a few urban centers; rural
areas and villages did not have electricity.After 1947, all new power

generation, transmission and distribution in the rural sector and the urban
centers (which was not served by private utilities) came under the
purview of State and Central government agencies. State Electricity
Boards (SEBs) were formed in all the states. Nuclear power development
is at slower pace, which was introduced, in late sixties. The concept of
operating power systems on a regional basis crossing the political
boundaries of states was introduced in the early sixties. In spite of the
overall development that has taken place, the power supply industry has
been under constant pressure to bridge the gap between supply and
demand.

GROWTH SCENORIO IN INDIAN POWER SECTOR

Development of Power Sector is the key to the economic development.
The power Sector has been receiving adequate priority ever since the
process of planned development began in 1950. The Power Sector has
been getting 18-20% of the total Public Sector outlay in initial plan
periods. Remarkable growth and progress have led to extensive use of
electricity in all the sectors of economy in the successive five years plans.
Over the years (since 1950) the installed capacity of Power Plants
(Utilities) has increased to 89090 MW (31.3.98) from meagre 1713 MW in
1950, registering a 52d fold increase in 48 years. Similarly, the electricity
generation increased from about 5.1 billion units to 420 Billion units – 82
fold increase. The per capita consumption of electricity in the country also
increased from 15 kWh in 1950 to about 338 kWh in 1997-98, which is
about 23 times. In the field of Rural Electrification and pump set
energisation, country has made a tremendous progress. About 85% of the
villages have been electrified except far-flung areas in North Eastern
states, where it is difficult to extend the grid supply.

STUCTURAL DEVELOPMENT OF POWER SECTOR

Till December 1950 about 37% of the installed capacity in the Utilities was
in the public sector and about 63% was in the private sector. The
Industrial Policy Resolution of 1956 envisaged the generation,
transmission and distribution of power almost exclusively in the public
sector. As a result of this Resolution and facilitated by the Electricity
(Supply) Act, 1948, the electricity industry developed rapidly in the State
Sector.

In the Constitution of India “Electricity” is a subject that falls within the
concurrent jurisdiction of the Centre and the States. The Electricity
(Supply) Act, 1948, provides an elaborate institutional frame work and
financing norms of the performance of the electricity industry in the
country. The Act envisaged creation of State Electricity Boards (SEBs) for
planning and implementing the power development programmes in their
respective States. The Act also provided for creation of central generation
companies for setting up and operating generating facilities in the Central
Sector. The Central Electricity Authority constituted under the Act is
responsible for power planning at the national level. In addition the
Electricity (Supply) Act also allowed from the beginning the private
licensees to distribute and/or generate electricity in the specified areas
designated by the concerned State Government/SEB.

During the post independence period, the various States played a
predominant role in the power development. Most of the States have
established State Electricity Boards. In some of these States separate
corporations have also been established to install and operate generation
facilities. In the rest of the smaller States and UTs the power systems are
managed and operated by the respective electricity departments. In a few
States private licences are also operating in certain urban areas.

From, the Fifth Plan onwards i.e. 1974-79, the Government of India got
itself involved in a big way in the generation and bulk transmission of
power to supplement the efforts at the State level and took upon itself the
responsibility of setting up large power projects to develop the coal and
hydroelectric resources in the country as a supplementary effort in
meeting the country’s power requirements. The National thermal Power
Corporation (NTPC) and National Hydro-electric Power Corporation (NHPC)
were set up for these purposes in 1975. North-Eastern Electric Power
Corporation (NEEPCO) was set up in 1976 to implement the regional
power projects in the North-East. Subsequently two more power
generation corporations were set up in 1988 viz. Tehri Hydro Development
Corporation (THDC) and Nathpa Jhakri Power Corporation (NJPC). To
construct, operate and maintain the inter-State and interregional
transmission systems the National Power Transmission Corporation (NPTC)
was set up in 1989. The corporation was renamed as POWER GRID in
1992.

The policy of liberalisation the Government of India announced in 1991
and consequent amendments in Electricity (Supply) Act have opened new
vistas to involve private efforts and investments in electricity industry.
Considerable emphasis has been placed on attracting private investment

and the major policy changes have been announced by the Government in
this regard which are enumerated below:

 The Electricity (Supply) Act, 1948 was amended in 1991 to provide
for creation of private generating companies for setting up power
generating facilities and selling the power in bulk to the grid or
other persons.

 Financial Environment for private sector units modified to allow
liberal capital structuring and an attractive return on investment. Up
to hundred percent (100%) foreign equity participation can be
permitted for projects set up by foreign private investors in the
Indian Electricity Sector.

 Administrative & Legal environment modified to simplify the
procedures for clearances of the projects.

 Policy guidelines for private sector participation in the renovation &
modernisation of power plants issued in 1995.

 In 1995, the policy for Mega power projects of capacity 1000 MW or
more and supplying power to more than one state introduced. The
Mega projects to be set up in the regions having coal and hydel
potential or in the coastal regions based on imported fuel. The Mega
policy has since been refined and Power Trading Corporation (PTC)
incorporated recently to promote and monitor the Mega Power
Projects. PTC would purchase power from the Mega Private Projects
and sell it to the identified SEBs.

 In 1995 GOI came out with liquid fuel policy permitting liquid fuel
based power plants to achieve the quick capacity addition so as to
avert a severe power crisis. Liquid fuel linkages (Naphtha) were
approved for about 12000 MW Power plant capacity. The non-
traditional fuels like condensate and orimulsion have also been
permitted for power generation.

 GOI has promulgated Electricity Regulatory Commission Act, 1998
for setting up of Independent Regulatory bodies both at the Central
level and at the State level viz. The Central Electricity Regulatory
Commission (CERC) and the State Electricity Regulatory Commission
(SERCs) at the Central and the State levels respectively. The main
function of the CERC are to regulate the tariff of generating
companies owned or controlled by the Central Government, to
regulate the tariff of generating companies, other than those owned
or controlled by the Central Government, if such generating
companies enter into or otherwise have a composite scheme for
generation and sale of electricity in more than one State to regulate

Power Grid Corporation of India Limited will be Central Transmission Utility.  The main functions of the SERC would be to determine the tariff for electricity wholesale bulk. The participation by private sector in the area of transmission is proposed to be limited to construction and maintenance of transmission lines for operation under the supervision and control of Central Transmission Utility (CTU)/State Transmission Utility (STU). efficiency and economy in the activities of the electricity industries etc. as and when each State Government notifies. the inter-state transmission of energy including tariff of the transmission utilities. 1998 provides for creation of Central and State Transmission utilities. The share is likely to decline even further unless suitable corrective measures are initiated immediately. State Governments.5 per cent at the end of Eighth Plan. grid or retail. On selection of the private company. ELECTRICITY RESOURCE GENERATION SHARE The share of hydel generation in the total generating capacity of the country has declined from 34 per cent at the end of the Sixth Plan to 29 per cent at the end of the Seventh Plan and further to 25. The function of the Central Transmission Utility shall be to undertake transmission of energy through inter-state transmission system and discharge all functions of planning and coordination relating to inter-state transmission system with State Transmission Utilities. to regulate inter-state bulk sale of power and to aid & advise the Central Government in formulation of tariff policy.  The Electricity Laws (Amendment) Act. generating companies etc. generating companies etc. to determine the tariff payable for use by the transmission facilities to regulate power purchase and procurement process of transmission utilities and distribution utilities. 1998 passed with a view to make transmission as a separate activity for inviting greater participation in investment from public and private sectors. Hydel power . The CERC has been constituted on 24. other regulatory functions would also be assigned to SERCs.1998. State Governments. to promote competition. the CTU/STU would recommend to the CERC/SERC for issue of transmission licence to the private company. Central Government.7. Subsequently.  The function of the State Transmission Utility shall be to undertake transmission of energy through intra-state transmission system and discharge all functions of planning and coordination relating to intra- state transmission system with Central Transmission Utility.  The Electricity Laws (Amendment) Act.

e. As a result of these technical and managerial problems. have been exhausted and progressively lower grades of coal are being made available for electricity generation in the power stations. which have higher calorific value.projects. the PLF touched 55. Inadequate hydel support in some of the regions is adversely affecting the performance of the thermal power plants. During one year in the seventies i. Presently. peaking power is being provided by thermal plants. strong integrated grids exist in all the five regions of the country and the energy resources developed are widely utilized within the regional grids. With the proposed inter-regional links being developed it is envisaged that it would be possible for power to flow anywhere in the country with the concept of National Grid becoming a reality during 12th Plan Period. the Eastern & North- Eastern Regions are operating in parallel. certain difficulties arose in their efficient operation and maintenance. some of which have to back down during off peak hours. with storage facilities. during 1976-77. REGIONAL POWER SYSTEMS EMERGENCE In order to optimally utilize the dispersed sources for power generation it was decided right at the beginning of the 1960’s that the country would be divided into 5 regions and the planning process would aim at achieving regional self sufficiency. With the introduction of new design of generating units. The availability of coal in the country is such that the higher grades of coal. The all India Thermal PLF which was as low as 27% at the beginning of First Plan progressively increased to 47. Today. Several . the utilisation level of coal based power stations in the country declined in the late 1970s and early 1980s. provide peak time support to the power system. In Western and Eastern regions. INSTALLED GENERATION CAPACITY UTILIZATION The size of the generating unit that has been used in the country in coal based power stations has progressively increased from about 15 MW prior to the era of planned development to 500 MW at present. This had resulted into operational problems with the boilers designed for higher grades of coal and also put more pressure on coal handling plants etc.%% by the year 1963-64 and than declined to around 42% by early seventies.4% but this could not be sustained during subsequent years. The planning was so far based on a Region as a unit for planning and accordingly the power systems have been developed and operated on regional basis.

Concerted efforts were made by Ministry of Coal to monitor quality of coal supplies to power plants. The most important is that lenders are not willing to finance large independent power projects. guarantees and counter- guarantees.5% by the end of the 7 th Plan. The performance of 200/210 MW units also begin to stabilize. selling power to a monopoly buyer such as SEB. However. matching transmission networks and legally enforceable contracts for fuel supplies. During the 6th Plan. many projects have encountered unforeseen delays. The shortfall in the private sector was due to the emergence of a number of constraints. which is not financially sound because of the payment risk involved if SEBs do not pay for electricity generated by the IPP. It is important to resolve these difficulties and evolve a framework of policy which can ensure a reasonable distribution of risks which make power sector projects financially attractive. which was only 44. The all India Average PLF of the Thermal Power Plants has further increased to 64. The plant load factor of thermal power stations in the country. As a result of all these measures the PLF of thermal plants registered a gradual improvement during the 7th plan period. PRIVATE SECTOR PARTICIPATION The initial response of the domestic and foreign investors to the policy of private participation in power sector has been extremely encouraging. environmental clearances.4% by the end of eighth plan. which were not anticipated at the time the policy was formulated. Department of Power and Central Electricity Authority undertook a comprehensive programme to renovate and modernize old units located in different States.factors such as inadequate maintenance of generating units. which concern penalties for non- performance. There have been delays relating to finalization of power purchase agreements. increased to 56. . is another area of potential difficulty. the teething troubles faced in the operation of the newly introduced 200/210 MW units and the deterioration in the quality of coal supplied to power stations led to a gradual erosion in the PLF of the thermal power plants during 5th plan period. Uncertainties about fuel supply arrangements and the difficulty in negotiating arrangements with public sector fuel suppliers.2% in 1980-81.

This can be best achieved by unbunding single entity (SEBs) and corporatising the same for the above activities. Regulatory bodies The Government of India has promulgated Electricity Regulatory Commission Act. Viability of SEBs The financial health of the SEBs will be improved through rationalization of tariff. Speedy environmental clearance: The Ministry of Environment and Forests has agreed to delegate the powers to States for environmental clearance of :  all co-generation plants and captive plants up to 250 MW.  Coal based plants up to 500 MW using fluidized technology subject to sensitive areas restrictions.  Gas/Naphtha based stations up to 500 MW. In this context. restructuring and reforms to make them economically viable and their projects bankable to generate energy on economic rate.  Power stations up to 250 MW on conventional technology.588 MW to be added by private generating companies. In order to achieve the targeted private sector capacity addition during the Ninth Plan.The capacity addition programme for the 9 th Plan envisaged around 17. to provide quality services to the consumers and to ensure a fair return to the investors. 1998 for setting up of Independent regulatory bodies . some of the States have taken initiative by unbundling their respective SEBs into separate companies for Generation & Transmission & Distribution. Most of these have been accepted while some of them are under the consideration of the Government. the following additional facilitating measures have recently been suggested by the promoters.

. being of the order of Rs. The SEBs. the Haryana Government has also initiated reform programme by unbundling the State Electricity Board into separate companies and Haryana Electricity Regulatory Commission has already been constituted. have been incurring heavy losses. Governments of Uttar Pradesh.000 crore. CURRENT PROBLEM OF POWER SECTOR The most important cause of the problems being faced in the power sector is the irrational and unremunerative tariff structure. 1995. With a view to improve the functioning of State Electricity Boards. 1998 more and more States are coming up with an action plan to undertake the reform programmes. Although the tariff is fixed and realized by SEBs. their internal resources generation during the next ten years will be negative.both at the Central level and at the State level viz. This highlights the importance of initiating power sector reforms at the earliest and the need for tariff rationalization. These regulatory bodies would primarily look into all aspects of tariff fixation and matters incidental thereto. especially agriculture. Goa. the Government promulgated the State Electricity Regulatory Commission Act for establishment of Central Electricity Regulatory Commission at the national level and State Electricity Regulatory Commission in the States for rationalisation of tariff and the matters related thereto. The Central Electricity Regulatory Commission (CERC) and the State Electricity Regulatory Commissions (SERCs) at the Central and the State Levels respectively. The Orissa Government was the first to introduce major reforms in power sector through enactment of Orissa Reforms Act. the State Governments have constantly interfered in tariff setting without subsidizing SEBs for the losses arising out of State Governments desire to provide power at concessional rates to certain sectors. Power Supply to agriculture and domestic consumers is heavily subsidized. In this respect. Under this Act. Orissa Grid Company and Orissa Electricity Regulatory Commission have been formed. If the SEBs were to continue to operate on the same lines. Orissa Generating Company. Subsequent to the enactment of ERC Act. Rajasthan.(-) 77. This raises serious doubts about the ability of the States to contribute their share to capacity addition during the Ninth Plan and thereafter. Madhya Pradesh. in the process. Only a part of this subsidy is recovered by SEBs through cross subsidization of tariff from commercial and industrial consumers. Karnataka and Maharashtra have referred their proposals for setting up independent regulatory mechanism in their States. Similarly.

The total installed capacity at the beginning of 9 th Plan i. the CTU/STU would recommend to the CERC/SERC for issue of transmission license to the private company. the Government of Karnataka is the first to invite private sector participation in transmission by setting up joint- venture company. Ninth plan capacity addition programme The Working Group on Power. With these efforts.795 MW comprising 21.e. In this regard. 2. constituted by Planning Commission. The entry of private investors will be encouraged wherever feasible and it is proposed to carry out these reforms in a phased manner. in its report of December 1996 had formulated.658 MW Hydro.012 MW Thermal including gas and diesel. To meet the growing demand and shortages encountered.735 MW is .590 MU (11. it is expected that the performance of power sector will improve because of rationalization of tariff structures of SEBs and adequate investment for transmission and distribution sector. On selection of the private company.225 MW Nuclear and 900 MW Wind based power plants. The participation by private sector in the area of transmission is proposed to be limited to construction and maintenance of transmission lines for operation under the supervision and control of Central Transmission Utility (CTU)/State Transmission Utility (STU). a need based capacity addition programme of 57.4. 1.735 MW for the Ninth Plan which would by and large meet the power requirements projected in 15 th Electric Power Survey Report. Capacity addition during 9th plan Power supply position at the beginning of 9th plan . Other States are also in the process of introducing the reforms in the transmission sector. In view of the urgent need to reduce transmission and distribution losses and to ensure availability of reliable power supply to the consumers reforms in the distribution sectors are also been considered by establishing distribution companies in different regions of the State. The Governments of Orissa and Haryana have already initiated reforms in the distribution sector by setting up distribution companies for each zone within their States. However.POWER SECTOR REFORMS The Electricity (Amendment) Act 1998 was passed with a view to make transmission as a separate activity for inviting greater participation in investment from public and private sectors.97 was 85. sufficient capacity would need to be added in subsequent plan periods. 61. it was felt that this capacity addition of 57. The actual power supply position at the beginning of the 9 th Plan indicates peak shortage of 11.477 MW (18%) and energy shortage of 47.5%) on All India basis.

the demand for energy has grown at an average of 3.. Other than PSUs and state level corporations. The Ministry of Power is the apex body responsible for the development of electrical energy in India. accounting for 3. As far as generation is concerned it is mainly divided into three sectors these are Central Sector. At the end of December 2012. Transmission.2 7 3. Kerala State Electricity Board (KSEB). UGVCL four distribution Companies and one controlling body GUVNL.63MW) of total installed capacity i. constitute 29. Central Sector or Public Sector Undertakings (PSUs). The PowerGrid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.0 17038. The Union Minister of Power at present is Sushilkumar Shinde and Minister of State for Power is K.not feasible and a target for capacity addition of 40245 MW was fixed for Ninth Five-year plan..e. NTPC Ltd. and one generation company GSEC). several state-level corporations are there which accounts for about 41. such as Jharkhand State Electricity Board (JSEB).7 4933.72 MW (as on 31/12/2012) in India. Maharashtra State Electricity Board (MSEB). The Sector-wise/type-wise details are given below: Sector-wise / type-wise capacity addition programme during ninth plan (Figures in MW) Sector Hydro Thermal Nuclear Total Central 3455. 210951. and Distribution.5 880.6% per annum over the past 30 years.78% (62826. PGVCL.C Venugopal.7 Private 550.0 40245. There are three major pillars of power sector these are Generation. and Nuclear Power Corporation of India (NPCIL). the installed power generation capacity of India stood at . earlier. DGVCL.0 7574. 29545.OBJECTIVES OF POWER INDUSTRY The power sector in India is mainly governed by the Ministry of Power. likely gestation period for completion of the projects and likely availability of funds.4% of global energy consumption. are also involved in the generation and intra-state distribution of electricity. Major PSUs involved in the generation of electricity include NHPC Ltd.0 — 10747. transmission and distribution.10% of overall generation . Besides PSUs.0 880 11909 State 5814.5 — 17588.11%(61409. new projects in pipeline. The above target was finalised after considering the status of Sanctioned/ongoing schemes. with Maharashtra as the leading electricity generator among Indian states. India is world’s 6th largest energy consumer. in Gujarat (MGVCL.. it was known as the Ministry of Energy.5 TOTAL 9819. This ministry started functioning independently from 2 July 1992. State Sector. private sector enterprises also play a major role in generation.24MW) of total installed capacity is generated by private sector. and Private Sector. about 29. Due to India’s economic rise.

136 crore which is expected to to rise to Rs 1. About 65% of the electricity consumed in India is generated by thermal power plants.54 KWh(2008-09).000 MW by 2030. wind. common in most parts of urban India..000 MW of installed generation capacity by 2012. cumulative loss of 110 power utilities are estimated as Rs 86. The Indian government has set an ambitious target to add approximately 78. The condition of utilities are not good either. India has committed massive amount of funds for the construction of various nuclear reactors which would generate at least 30. Theft of electricity. about 28.089 crore by 2014-15. The per capita power consumption in India is 733.54KWh/yr. just 46 percent of rural households have access to electricity. Despite an ambitious rural electrification program.000 MW of solar power by 2020 under National Solar Mission.72 MW. 3% by nuclear power plants and rest by 10% from other alternate sources like solar.000 MW. as on 31/12/2012) Grand Total Installed Capacity is 210951. As of March 2011. while the per capita energy consumption stood at 733.16. ELECTRICITY GENERATION (Data Source CEA. India’s installed wind power generation capacity stood at about 12000 MW. India needs to tide over a peak power shortfall of 13% between 5pm and 11pm by reducing losses due to theft and pilferage. Additionally.5% of India’s GDP. The country has also invested heavily in recent years on renewable sources of energy such as wind energy.44%(2008-09). In July 2009. India unveiled a $19 billion plan to produce 20. which is very minimal as compared to global average of 2340KWh/yr. While 84.7% of India’s commercial energy demand is met through the country’s vast coal reserves. 53.210951. biomass etc. amounts to 1. some 400 million Indians lose electricity access during blackouts.9% of Indian villages have at least an electricity line. power cuts are common throughout India and this has adversely effected the country’s economic growth. Electricity losses in India during transmission and distribution are extremely high. India is the sixth largest in terms of power generation. The total demand for electricity in India is expected to cross 950. The data below are in MW DIESE NUCLE HYDR PERCENTAG COAL GAS L AR O RES TOTAL E(%) . 22% by hydroelectric power plants.72MW. Due to shortage of electricity.

10% CENTRAL 41995.57 18.  R.G. The entire country has been divided into five regions for transmission systems. INCLUDES :.74 MW  (SHP – SMALL HYDRO POWER.- BIOMASS GASIFIER. However.11% 120873 18903 1199.29% % % 2. The power plant at Darjeeling and Shimsha(Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. India Transmission of electricity is defined as bulk transfer of power over a long distance at high voltage.0 9349.1 2595.9 86715.0 39339 25856 210951 TOTAL . Southern Region and Western Region.33 MW. North Eastern Region.2 4780.708 ckm in 1950 to more than 166000ckm.65 12.3 602. SECTOR 8 0 4 0.00 63 29.27% % % 100.  India was one of the pioneering countries in establishing hydro- electric power plants.STATE 49933. 3569. 4780. in the past.0 6702.P. Northern Region. – BIOMASS POWER.05 75 0 . due to various reasons such as spatial .00 00 2 85 41. 2010 ).B. The transmission system planning in the country.78% PRIVATE 28945.40 . 61409.00 0 22 24 29. had traditionally been linked to generation projects as part of the evacuation system.14 .SHP – 2900 MW .26 E(%) 57. namely. generally of 132kV and above. SECTOR 0 3 0. U&I – URBAN & INDUSTRIAL WASTE) ELECTRICITY TRANSMISSION FIG A power transmission cable operated by BEST in Mumbai.0 5215. out of which 75556ckm is transmitted by Power Grid Corporation of India (as on 30 Sep.38 . In India bulk transmission has increased from 3.6 27395.0 22286. SECTOR 0 2 1 0.00 0 0 0.E. – 2313. B. Ability of the power system to safely withstand a contingency without generation rescheduling or load-shedding was the main criteria for planning the transmission system. & B. WIND – 12000 MW.00%  Captive Genrating capacity connected to the Grid (MW) = 34444.5 597.3 6985.4 62826. The Interconnected transmission system within each region is also called the regional grid.12  The state of Maharashtra is the largest producer of thermal power in the country. Eastern Region.72 PERCENTAG 08.96 0.P.G. U&I & SOLAR – 114. B.S.

development of load in the network. Certain provisions in the Electricity Act 2003 such as open access to the transmission and distribution network. Electricity Distribution The total installed generating capacity in the country is 210951. This had necessitated backing down of generation and operating at a lower load generation balance in the past. non-commissioning of load center generating units originally planned and deficit in reactive compensation. While the predominant technology for electricity transmission and distribution has been Alternating Current (AC) technology.and the total number of consumers is over 146 million. However. AT&C loss captures technical as well as commercial losses in the network and is a true indicator of total losses in the system. As the T&D loss was not able to capture all the losses in the net work. 220kV. . and reached to the level of 28. certain pockets in the power system could not safely operate even under normal conditions. transmission and distribution front would result in formation of a robust electricity grid in the country.44% in the year 2008-09. It is expected that all the above measures on the generation. a vast network of sub transmission in distribution system has also come up for utilisation of the power by the ultimate consumers. and lack of adequate reactive power support. 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. the liberal definition of a captive generating plant and provision for supply in rural areas are expected to introduce and encourage competition in the electricity sector. the T&D losses have been consistently on higher side. which has resulted in unplanned extensions of the distribution lines. High technical losses in the system are primarily due to inadequate investments over the years for system improvement works. due to lack of adequate investment on transmission and distribution (T&D) works. 132kV and 66kV which has developed to transmit the power from generating station to the grid substations. concept of Aggregate Technical and Commercial (AT&C) loss was introduced. Transmission planning has therefore moved away from the earlier generation evacuation system planning to integrate system planning.The reduction of these losses was essential to bring economic viability to the State Utilities. 400kV.72MW. overloading of the system elements like transformers and conductors. recognition of power trading as a distinct activity. Apart from an extensive transmission system network at 500kV HVDC.

has led to reduction in the overall AT&C loss from 38. The main objective of the programme was to bring Aggregate Technical & Commercial (AT&C) losses below 15% in five years in urban and in high- density areas.44% in 2008-09.(estimated plan cost – Rs50000 crore). The APDRP programme is being restructured by the Government of India. along with other initiatives of the Government of India and of the States.000 MW. so that the desired level of 15% AT&C loss could be achieved by the end of 11th plan. controlling the input cost. The government had earlier planned to add 78. RGGVY. which the Planning Commission had scaled down to 62. APDRP meant to upgrade the distribution system. improve metering and assign responsibility for the realization of user charges —has not been able to bring down losses to 15% by the end of 2007.The commercial losses are mainly due to low metering efficiency. theft & pilferages. The programme. This may be eliminated by improving metering efficiency. optimization of capacity utilization. the Accelerated Power Development & Reform Programme (APDRP) was launched in 2001. . Fixing of accountability of the personnel / feeder managers may help considerably in reduction of AT&C loss. optimisation of fuel mix.000 villages and connecting 23 million below-poverty-line households across the country by 31 March.000 MW of power capacity by the end of the 11th Plan. has also been faltering. This may now be further curtailed to 58. as originally targeted in 2000-01. minimize transmission and distribution losses.86% in 2001-02 to 28. Objectives  Sufficient power to achieve GDP growth rate of 8%  Reliable power  Quality power  Optimum power cost  Commercial viability of power industry  Power for all Strategies Power Generation Strategy with focus on low cost generation.000 MW (as on Dec’ 2010). which had a target of providing electricity to 125. With the initiative of the Government of India and of the States. proper energy accounting & auditing and improved billing & collection efficiency.

Financing Strategy to generate resources for required growth of the power sector. Number of Villages (1991 Census) – 593. Bihar. Uttar Pradesh. This includes for use in agriculture and for consumption by backward classes. Load management and Technology upgradation to provide energy efficient equipment / gadgets. Technology upgradation & optimization of transmission cost.924 Village level Electrification % – 84.732 Villages Electrified (31/08/2010) – 503. Communication Strategy for political consensus with media support to enhance the general public awareness. quality power supply commercialization.9% Subsidies Several state governments in India provide electricity at subsidised rates or even free to some sections. Rural electrification Jharkhand. Distribution strategy to achieve Distribution Reforms with focus on System upgradation. Madhya Pradesh etc are some of the states where significant number (more than 10%) of villages are yet to be electrified. loss reduction. consumer service orientation.Technology upgradation and utilization of Non Conventional energy sources Transmission Strategy with focus on development of National Grid including Interstate connections. Decentralized distributed generation and supply for rural areas. theft control. with the other users such as industries and private consumers paying the deficit caused by the subsidised charges collected. Conservation Strategy to optimise the utilization of electricity with focus on Demand Side management. Such measures have resulted in many of the state electricity boards becoming financially weak.. The subsidies are mainly as cross- subsidisation. Orissa. Regulation Strategy aimed at protecting Consumer interests and making the sector commercially viable. Uttranchal. .

5 per cent in FY15.reaching 1075 KWh by FY16 .FINANCIAL INFORMATION Multiple drivers (industrial expansion. Government of India planned for capacity addition of 1. which includes 88. during FY06-FY16.reaching 1010 KWh  During the 12th Plan. GDP growth is likely to average 7.4. future investments will benefit from strong demand fundamentals.905 TWh by FY22  98 GW of generation capacity was added during FY11-16. by 2016-17  Per capita electricity consumption in the country grew at a CAGR of 9. policy support & increasing government focus on infrastructure  Per capita consumption has grown at a CAGR of 10 per cent between FY06 and FY15  Per capita consumption grew 4.63 per cent.537 MW through conventional sources & 30. this is set to continue in the coming years  During FY15-16.6 per cent  India is set to become a global manufacturing hub with investments across the value chain  India’s power demand is expected to rise up to 1.18.537 MW. growing per-capita incomes) are leading to growth in power demand.7 per cent in FY14 but tapered to 5.000 MW through renewable sources.

48 billion  100 per cent FDI in power sector has boosted FDI inflows in this sector.15 million in FY16  Power sector accounted for 3.INCREASING INVESTMENTS: FDI INFLOWS AND KEY DEALS  Power is one of the key sectors attracting FDI inflows into India  FDI inflows into the sector increased from USD4627 million in FY07 to USD10.476. .63 per cent of total inflows till March 2016  Cumulative FDI inflows into the sector in April’00–March’16 were USD10.

 The Ministry of New & Renewable Energy (MNRE) signed an agreement with Germany-based KfW Development Bank. at an estimated cost of USD44. plans to continue its focus on ‘Make in India’ initiative by further reducing the cost of renewable energy and developing over 15 gigawatts (GW) of wind & solar projects in the country by 2022 Jera Co. CLP India.  Private equity investments in the sector have surged since 2010  Asian Development Bank (ADB).77 billion in non-conventional energy sector.. the country witnessed growth of around 5.  Installed capacity increased steadily over the years.  SunEdison.7 per cent in FY09–16* . 2016. posting a CAGR of 8. 2014  EIG Global Energy Partners made an investment of USD125 million in Greenko Group. & Chubu Electric Power Co. since 2014.107..47 million in June 2016. which is planning to develop its wind  farms & hydropower assets in India by means of Greenfield projects & acquisitions  GE Energy Financial Services plans to invest USD24 million in a solar power project by Welspun Renewables Energy Pvt Ltd. New and renewable energy sector witnessed maximum power generation capacity addition.21 per cent.22 BU. India recorded FDI of US$ 1. total domestic energy production would reach 669. Goldman Sachs & Global Environmental Fund have together invested USD140 million in ReNew Wind Power Pvt Ltd on July 03.6 million tonnes of oil equivalent (MTOE) and would further increase to 844 MTOE by 2021–22. by 2016–17.  On 20 June. world’s largest renewable energy company.  During April-September 2016. Both the plants are expected to generate over 310 GW of green energy. acquired a 10 per cent stake in ReNEW Power Ventures Ltd. in February 2017.  Over FY10–16.  From April 2014 to September 2016. electricity production in India reached 584. to fund floating solar projects in Maharashtra & Kerala.  The 12th Five Year Plan projects that. a joint venture between Tokyo Electric Power Company Holdings Inc. acquired 49 per cent stake in Suzlon’s 100 mw-solar power project in Telangana.64 per cent over the previous fiscal year. which is among the largest foreign investors in India’s power sector.8 BU in India in FY16. FINANCIAL GROWTH IN POWER INDUSTRY  With electricity production of 1. electricity production expanded at a CAGR of 6..

solar. Sources of power generation range from conventional sources such as coal.Power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations. At the same time. oil. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. Sustained economic growth continues to drive electricity demand in India.44 BU during April 2016-August 2016. installed in 2016. India’s power sector is one of the most diversified in the world.554.69 per cent year-on-year to 486. and manpower). India ranks third among 40 countries in EY’s Renewable Energy Country Attractiveness Index. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy. finances. and agricultural and domestic waste. Electricity generation rose 5. massive addition to the installed generating capacity is required. natural gas. hydro and nuclear power to viable non-conventional sources such as wind. is estimated to increase 20 per cent over last year to . logistics. The Planning Commission’s 12th Five-Year Plan estimates total domestic energy production to reach 669. the competitive intensity is increasing at both the market and supply sides (fuel.25 Megawatt (MW) as of August 31. Market Size Indian power sector is undergoing a significant change that has redefined the industry outlook. on back of strong focus by the government on promoting renewable energy and implementation of projects in a time bound manner. The Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. lignite.6 Million Tonnes of Oil Equivalent (MTOE) by 2016–17 and 844 MTOE by 2021–22. 2016. India’s wind power capacity. In order to meet the increasing demand for electricity in the country. Total installed capacity of power stations in India stood at 305.

the industry attracted US$ 10.  The State Bank of India (SBI) has signed an agreement with The World Bank for Rs 4. the investment arm of the World Bank.  Power Finance Corporation Limited (PFC) has provided a financial assistance of Rs 13 crore (US$ 1. Some major investments and developments in the Indian power sector are as follows:  French power major EDF Energies.9 million) and collaborated with National Green Highways Mission (NGHM) under National Highways Authority of India (NHAI) for plantations work on NH7 in Nagpur region under their ‘Adopt a Green Highways’ Program. India’s wind energy market is expected to attract investments totaling Rs 1.  GAIL India Limited plans to enter into a partnership with California- based Bloom Energy Corporation to pursue natural gas-based fuel cell power generation. has announced that EDF plans to invest US$ 2 billion in renewable energy projects in India. Investment Scenario Around 293 global and domestic companies have committed to generate 266 GW of solar. The initiative would entail an investment of about US$ 310–350 billion.000 MW per annum in the next five years. and wind power capacity is estimated to almost double by 2020 from over 23.2. Between April 2000 and March 2016. nearly twice the addition of 2. plans to invest Rs 840 crore (US$ 125. with an addition of about 4.000 crore (US$ 14.800 MW@.  The World Bank Group has committed to provide US$ 1 billion for India’s solar energy projects and plans to work with other multilateral development banks and financial institutions to develop . aimed at financing Grid Connected Rooftop Solar Photovoltaic (GRPV) projects in India. led by favorable policy support that has encouraged both independent power producers (IPP) and non-IPPs. mini-hydel and biomass-based power in India over the next 5–10 years.91 billion) by 2020. India is expected to add nearly 4.00.3 million) credit facility.000 MW# of solar power in 2016. wind.  International Finance Corporation (IFC).48 billion in Foreign Direct Investment (FDI).3 million) in Hero Future Energies Limited.133 MW in 2015.200 crore (US$ 626. which is expected to help the country move away from relying on capital intensive fixed power infrastructure to capital light and soft infrastructure. which will be used to fund the construction of solar and wind power plants. the renewable energy arm of the Hero Group.000 MW in June 2015.

a Special Purpose Vehicle (SPV) set-up by Suzlon Group for building a 100 MW solar energy plant at Veltoor in Telangana. a leading investor in global growth markets. Caisse de depot et placement du Quebec (CDPQ).7 million) floating solar project in Maharashtra and Kerala. which would be used to protect renewable energy producers from payment delays by power . has set up its office in India and committed to invest US$ 150 million in the Indian renewable energy sector over the next three to four years. has acquired a 49 per cent stake in SE Solar. aimed at enhancing the use of bio-fuels like ethanol and biogas and reducing consumption of fossil fuels. plans to continue its focus on ‘Make in India’ by further reducing the cost of renewable energy and developing over 15 gigawatts (GW) of wind and solar projects in the country by 2022.5 billion) from FY 2017-18 to FY 2021-22.  The Ministry of New and Renewable Energy (MNRE) plans to launch an integrated bio energy mission with an investment of Rs 10. India’s largest private operator of transmission systems is joining hands with US major — Burn & McDonnell for its Rs 3.  Sembcorp Industries have launched a 2. Andhra Pradesh which is the largest Foreign Direct Investment (FDI)– driven project on a single site in the thermal power industry in India. world’s largest renewable energy company. sourced from The World Bank.  Canada's second largest pension fund.000 crore (US$ 1. Some initiatives by the Government of India to boost the Indian power sector:  The Government of India plans to set up a US$ 400 million fund.  Sterlite Grid. one of the largest foreign investors in India’s power sector.  The Ministry of New and Renewable Energy (MNRE) has signed an agreement with Germany-based KfW Development Bank to fund the Rs 300 crore (US$ 44. for Rs 73.96 million).5 crore (US$ 10. Government Initiatives The Government of India has identified power sector as a key sector of focus so as to promote sustained industrial growth. to build a large- scale renewable energy platform that will develop utility-scale solar power plants in India.  Aditya Birla Group has announced a partnership with the Abraaj Group.  SunEdison. which is expected to generate over 310 GW of green energy.640 Mega Watt (MW) Sembcorp Gayatri power complex worth US$ 3 billion in Nellore. financing instruments to support future solar energy development in the country.72 million) power transmission project in the Kashmir valley.000 crore (US$ 444.  CLP India.

64 MW of solar and wind based power systems at all the major ports across the country by 2017. accountability. and boost investor confidence in power transmission sector. thereby promoting the use of renewable energy sources and giving a fillip to government's Green Port Initiative. Coal. caused by wider adoption of roof-top solar power generation. has further extended its subsidy scheme to solar-powered refrigeration units with a view to boost the use of solar-powered cold storages. distribution firms.  The Ministry of Petroleum and Natural Gas is seeking to enhance India's crude oil refining capacity through 2040 by setting up a high- level panel. Minister of State with Independent Charge for Power. which is expected to yield high quality and high impact research outputs having industrial relevance. New and Renewable Energy and Mines. which would give investment support for stressed power assets and renewable energy projects in the country.  The Ministry of Shipping plans to install 160. launched an online portal for star rating of mines. targeted towards addressing societal needs.  The Ministry of New and Renewable Energy (MNRE). which will work towards aligning India's energy portfolio with changing trends and transition towards cleaner sources of energy generation. transparency. .  The Government of India and the Government of the United Kingdom have signed an agreement to work together in the fields of Solar Energy and Nano Material Research. and thereby ensure compliance of environmental protection and social responsibility by the mining sector.  The Ministry of Power plans to set up two funds of US$ 1 billion each. while at the same time protecting the distribution firms from the shrinking market for conventional grid-connected power.  Mr Piyush Goyal.  Mr Piyush Goyal. Coal. Minister of State with Independent Charge for Power. New and Renewable Energy and Mines. which will bring all mines to adopt sustainable practices. which is expected to enhance ease. inaugurated the Tarang (Transmission App for Real Time Monitoring & Growth) mobile app and web portal for electronic bidding for transmission projects. which provides 30 per cent subsidy to most solar powered items such as solar lamps and solar heating systems.

000 MW from solar power. and equipment.  Mr Piyush Goyal. according to Union Minister Mr Piyush Goyal. commercial and agriculture use. thereby providing immense opportunities in power generation. distribution.000 MW from biomass. etc. Press Information Bureau (PIB) . The Government of India is taking a number of steps and initiatives like 10-year tax exemption for solar energy projects. This means doubling the current production capacity to provide 24x7 electricity for residential. and 5. 60.  The Government of India plans to start as many as 10. Coal and New & Renewable Energy outlined Government of India’s goal to provide electricity to every home in India by 2020. 2016 References: Media Reports.  The Government of India announced a massive renewable power production target of 175. 10. with an average capacity of 50 kilowatt per project. this comprises generation of 100. The government has also sought to restart the stalled hydro power projects and increase the wind energy production target to 60 GW by 2022 from the current 20 GW. Exchange Rate Used: INR 1 = US$ 0.  Government of India has asked states to prepare action plans with year-wise targets to introduce renewable energy technologies and install solar rooftop panels so that the states complement government's works to achieve 175 GW of renewable power by 2022. The Indian power sector has an investment potential of Rs 15 trillion (US$ 223.000 solar. wind and biomass power projects in next five years.000 MW from wind energy.0149 as on September 21. transmission. by the year 2022. Press Releases. Minister of State (Independent Charge) for Power. industrial. while also focussing on ensuring the cost of power is affordable to everyone.000 MW by 2022. including addition of 100 GW of solar power.. thereby adding 500 megawatt to the total installed capacity.67 billion) in the next 4–5 years. in order to achieve India's ambitious renewable energy targets of adding 175 GW of renewable energy. The government’s immediate goal is to generate two trillion units (kilowatt hours) of energy by 2019.000 MW from small hydro power projects.

89%) in 2015-16 among all countries. This situation has changed due to glut in petroleum products globally. If the power distribution companies. electricity transmission companies and distribution companies would be facing severe competition to cut down the prices and improve their operating efficiency in a final consumer dictated market. etc. electricity generators. fuel transporters (railways. Electric energy consumption in agriculture was recorded highest (17. the gross electricity generated by utilities in India was 1.352 TWh or 1. they would be opting for solar/wind power plants or take over an existing power plant to meet their captive consumption. diesel oil. Due to tepid growth in electricity consumption. Many of the stranded gas and liquid fuel based power stations would be competing with indigenous coal based power stations in an electricity market where demand growth is not encouraging. India is the world's third largest producer and fourth largest consumer of electricity.84 TWh and the total electricity generation (utilities and non utilities) in the country was 1.64 kWh per capita.116. keep on charging exorbitant tariffs to bulk consumers.075. GoI has launched a scheme called . Earlier many of the power stations which are using fuels other than coal are unable to operate due to high cost of LNG and petro products. The calendar year 2016 started with steep fall in the international price of energy commodities such as coal.according to data from Bridge to India 5.as per data from Central Electricity Authority | ^. bunker fuel and LNG which are used in electricity generation in India. The prices are falling to such an extent that these fuels have become cheaper to give competition for pit head coal based power generators.GROWTH OF POWER INDUSTRY The utility electricity sector in India had an installed capacity of 315. All the segments of the electricity sector such as fuel suppliers.).[3] The per capita electricity consumption is low compared to many countries despite cheaper electricity tariff in India. By the end of calendar year 2015. pipelines. During the fiscal year 2015-16. Renewable power plants constituted 30% of total installed capacity. despite poor hydro electricity generation. India had become a power surplus nation with huge electric power generation capacity idling for want of power demand.as per global clean energy communications and research firm Mercom Capital Group | $. coal stocks are continuously building up at power stations as well as coal mines. In order to address the lack of adequate electricity availability to all the people in the country by March 2019.42 GW as on 28 February 2017. harbours. naphtha.Note: # .

025 MW coal based power plants under construction and additional 100. Draft National Electricity Plan.This scheme will ensure continuous and uninterrupted electricity supply to all households.000 MW renewable power capacity . industries and commercial establishments by creating and improving necessary infrastructure. 2016 prepared by GoI states that India does not need additional non-renewable power plants till 2027 with the commissioning of 50. Its a joint collaboration of GoI with states to share funding and create overall economic growth."Power for All".

2015-16) Services Share of private sector in generation 42% (December 2016) Institutions Responsibility for policy-setting Ministry of Power Responsibility for renewable energy Ministry of New and Renewable Energy Responsibility for the environment Ministry of Environment.20% (% of total.77% Residential consumption 22. 2015-16) Commercial consumption 8.42 GW Share of fossil energy 68.0% GHG emissions from electricity generation (2014) 2019. Forest and Climate Change Electricity sector law Electricity Act. ELECTRIC SECTOR IN INDIA Electricity coverage 81% (2013) Installed capacity (28 Feb. 2015-16) Industrial consumption 44. 2003 .05% (% of total.97% (% of total.77% Transmission losses (2014-15) 22.67 MtCO2 Average electricity use (2015-16) 1.075 kWh per capita Distribution losses (2014-15) 22.2% Share of renewable energy 30. 2017) 315.

INSTALLED CAPACITY The total installed power generation capacity is sum of utility capacity. captive power capacity and other non-utilities .

200 100.870 MW during the 12th five-year plan which would end on 31 March 2017.000 MW capacity diesel power generation sets (excluding sets of size above 1 MW and below 100 kVA) are also installed in the country.00% .Another 75. In addition. there are innumerable DG sets of capacity less than 100 kVA to cater to emergency power needs during the power outages in all sectors such as industrial.415 MW against the target of 155. commercial.57% Renewable energy source Included in 'Oil' Total 47. domestic and agriculture.200 MW as on 31 March 2016. Captive Power Generation Source Captive Power Capacity (MW) Share Coal 27. the achieved thermal power generation capacity addition excluding renewable power is 82.26% Hydroelectricity 67 0.958 29. Captive Power The installed captive power generation capacity (above 1 MW capacity) in the industries is 47.677 12.498 58.03% Oil 13.Utility Power FIG Growth of Installed Capacity in India The total installed capacity is after deducting the retired capacity (if any) which are very old and obsolete.14% Natural Gas 5. As of 31 June 2016.

30 69.12 44.06 8.83 0.38 81.490.6 554.20 0.0 101. Thermal (MW) Renewable (MW) Nuclea Total Sector r Other Sub-Total Diese Sub-Total (MW) Coal Gas (MW) Hydro Renewab Renewab l Thermal le le 5.8 212.81 3 0 3 10.312.554.296.1 918.00 7.568.0 Private 70.00 11.56 1.992.83 0.The total installed utility power generation capacity as on 31 August 2016 with sector wise & type wise break up is as given below.35 8 3 9 0 0 3 5 Percenta 61.0 11.120.4 305.47 28.236.00 58.902.968.592.9 28.210.355.94 0.54 100 ge .651.785.0 42.9 5.780.70 71.880.780.89 14.055.13 0.197.26 0 3 363.00 3.43 76.00 1.273.057.945.651.50 7.8 25.205.236.06 14.92 0 6 6 186.9 State 64.390.9 127.00 42.963.80 30.2 All India 44.4 Central 51.210.92 87.

91 4. 7.97 7.82 52.383.88 .23% Telangana 5.75 0.390. 40. 0.166.643. 80.722.816.62 .58 234.30 2.40 0.Unallocated 1. 10.17 .55 6. 6.18 13.271.00 718. 62. .00 1. 28.07 .91 0. . 48.80 754.11 463.66 12.91 .14 . .83 .78119.57 273.65 9.075.10 .05 40.441.001.516.145. 374.9 Southern Region 4.62 2012.95% Jammu & Kashmir 329.70% Delhi 5.126.36 124.4 36.513. 127.05 34.98 36.86 3.Unallocated 977.663.398.1510.962.962.145.64 202.27 1.04% Meghalaya 17.69 533. 754.02% Dadra & Nagar 44.80 .688. 48.28 2.70 67.52 120.429.38 318.79 1.10 11.04% Central .274.05 .15 269.74% Central .87 2.72 3.10 51.55 10. 129.93 .18 447.06 .662. 22.316.02 5.01 83.05 40.40 5.245.721.81% 0 8 6 0 3 1 4 0 Sikkim 92. .48 9.456.50 69.68 .04 .16 1.35 10.523. .50 6.05400.30 .759.137.09 0.50 204.806.37 27.31 36.183.792.6 73.14 .707.35 43.523.4 28.572.453.815.02 1. .574.12% Odisha 6.547. 57.37 21.1 100.32 304.30 411.00 327.331.43 114.00% 88 5 3 56 2 4 6 62 DEMAND Demand trends .75 9.0 10.60 1881.05 2.50 .32 772.42 0.84 6.02 0.19% Gujarat 16.685.63 0.005.6 78.50 36.35 23.398.7 2.20 0.96% Chandigarh 32.32 .805.80 4552.03 0.03 387.823.0 17.605.53 1.550.38 640. . 193.00% Kerala 1.71 856.1 65.62 0. 1.08% 7 7 3 DVC 7.844. 11.036. 97.12% Rajasthan 9. .92 335.04 .83 138.08 300.05 0.03 334.38 3.113.00 .283.47 70.32 32. . .00 262.20 690.84% Puducherry 249.35 50. 7.99 2.443.00 .27 52.819.8 17.038.710.223.802.65 3.42 4.50% Arunachal Pradesh 12.24 . 0.67 82.42 6. 7.733. 10.82 . 6.55 2.54 129.03% Haveli Chhattisgarh 13.97% Himachal Pradesh 152.91% Madhya Pradesh 11.10 .95 549.590.05 220.369.83 7.943.91 8.1 26.99140.36 559.379.30 131.94 .5 Eastern Region 190.54 15.367.66 .48 8.18 .8 28. .228. 41. 4.516.911.595.27 3.46 .104.511.29 .53% Jharkhand 2. 1.121.00 . 429.16 1.160.47 1. .05% Mizoram 10.0 275.49 47.182.59% Haryana 6.29% 1 1 2 0 2 2 54 West Bengal 8.Unallocated 37.620.468.83 1.193.40 0.26 228. 200.75 0.52 3.60 1. Total 5. 100.93 0.753.320.17 .08 10.76 8.30 4. 141.60 1.10 1026.66 1. 2.84 .90 0.32 5.99 7.26 7.80 208. 0.38 .54 4.40 1.008.35 . 100.27% Region Nagaland 10.05 148.7 1.39 257.05 .49 38.41 .41 3.21 1.52 .563.24 3. . 281.20 .772.5 191. .168.29 0.03 .56 0.50 104.92 2.227.07 .02% Islands .152.400.5 46.83 100.42 3.0 13. 22.504.04 67.470. 7.78 .177.8 33.92 .08 3.19 4. 71. 34.15 0.14 . Western Region .20 8.82 244.537.242.12 434.62 .04% Bihar 2. 2. 13.00% Lakshadweep .14% 28.151.70 36.70 105. 1. .28% 40. 53. .894.32 2.28 15.372.539.4 1. .00 .15% Uttar Pradesh 11.43206. .84 62.17 48.86 8.55 4.54 62.78% Central .46 77.83 13.26 12.72 34.30 989.Unallocated 1.98 2.70 46.87 228.842.158.49% Goa 326.74 2. 92.6 20.840.58 31.11 226. 1.14 3.642.98 5.65 16. 1.08 822.780 100.64 .15 .7 25. 468.002.97 .308.13% Andaman & Nicobar .50 2. 905.582.35 .08 1.622.19% Manipur 15.950.721.4 77.19 290. 127.997.64 0.1 993.81 6.29 . 12. 8.48 0.00 1.Unallocated 1.93 .93 116.00 2.93 20. .35 .16 15.72 2.86 3.087.0 15.10% Central .12 243.513.64 11.250.04 0.447.05 . 55.66 11.4 Northern Region 5.70 538. .57 104.444.267. .91 7.93 .961.083.02% 167.45 1.38 3.75 573. .46 .21 156.07% Maharashtra 24.753.48 .17 0.64 4. 47.88 122.45 0. 40.09% Andhra Pradesh 5.70% Tripura 18.45 0.527.35 38.00% Assam 187.45 86.49 .572.NLC 100. 174.00 119.34 4.697.71 4.82 109.13 503.225.88 288.193. .320.00 1. 1.21 257.849.85 22.53 560.43 8. 213.01 .53% 0 6 0 7 6 2 North-Eastern 310.26 .57% Central .669.03% Daman & Diu 36.724. .44 .686.47% Uttarakhand 399.150.599.029.5 917.32 29.00 16.00 4.346. 2. . 234. 557.806.366. 356.04 3.796.02 61.70 . . .14 3.205.421.24% Punjab 6.38 1.29 9.27 6.672.78 23. 122.75 0.89 26.648. .06 0.0 11. 2.80 5.08 .37% 30. 193.408.404.49% Karnataka 6.35 196.598. .085.46% Tamil Nadu 10.538.4 36.331.423.075. 633.24 .66 90. .475. 1.719.670. . .83 127.203.625.72 825.09 .06 986.672.677. 1. State-wise All India installed capacity as of July 2015 (including allocated shares in joint and central sector utilities) Nuclear Total % of Thermal (in MW) Renewable (in MW) (in MW) (in MW) Total State/Union Territory Other Sub-Total Sub-Total Coal Gas Diesel Hydro Renewabl Renewabl Thermal e e 67.47 8.572. 79.61510.51 728.07 0.75 19.96 3.010.17 25. 11.11 0.404.90 34.047.75 2. 40.84 3.10 .66% Central .88 475.55 2.248.

unless electricity or clean burning fuel . the electricity generated in utility sector is 1.9% North- 16. By the end of calendar year 2015.370 +6.801 2.1% Eastern 151. between 5 and 15 times higher than industrial combustion of coal.6% Western 379.200 GW of additional new power generation capacity before 2050.459 351.1%) against the 2.557 billion KWh (-2.387 22.000 to 400. All India (Anticipated) Power Supply Position in FY 2016-17 Energy Peak Power Region Requirement Availability Surplus(+)/Defi Demand Supply Surplus(+)/Defic (MU) (MU) cit(-) (MW) (MW) it(-) Northern 357. This added new capacity is equivalent to the 740 GW of total power generation capacity of European Union (EU-27) in 2005.336 135.087 405. India accounts for over 300 million.3% Southern 310.1% and 2. carbon monoxide and other air pollutants. SOX.944 +3. including one by the World Health Organisation.3% 2. The International Energy Agency estimates India will add between 600 GW to 1.1% 164.3%) against the 2.715 +10. agricultural waste and biomass cakes – for cooking and general heating needs. a base load energy surplus and peaking surplus to be 1. thereby affecting outdoor air quality.800 54. polyaromatics. its burning releases high levels of smoke. Some 819 million Indians (63%) use traditional fuels – fuelwood. India's Central Electricity Authority anticipated for the 2016–17 fiscal year.900 -1.6% respectively.214.463 MW with a short fall of requirement by 4.377 169. claim 300. damage to forests.8% 55.895 +1.858 -8. Though few regions are expected to face energy shortage. known as chulah or chulha in some parts of India.7% deficit anticipated.197 14. may make significant impact to global resource usage and environmental issues.227.3 % 21.000 people in India die of indoor air pollution and carbon monoxide poisoning every year because of biomass burning and use of chullahs. chronic health problems.9% 51.3% 40. PAHs.436 56. NOX. power would be made available adequately from the surplus regions with the higher capacity inter regional transmission links. haze and smog.440 +4. India has become power surplus country despite lower power tariffs.Traditional fuel burning in conventional cook stoves releases unnecessarily large amounts of pollutants.695 -3. as it adds this electricity generation capacity. In LGBR 2016 report.564 320.851 billion KWh with a short fall of requirement by 23.2% deficit anticipated.8% Eastern All India 1.642 1. Traditional fuel is inefficient source of energy.145 44.713 -10.903 MW (-3.009 -1. The peak load met was 148.6% Of the 1. These traditional fuels are burnt in cook stoves. PM10 particulate matter.090. these reports claim.604 +11.4 billion people in the world who have no access to electricity. Some reports.403 +2.During the fiscal year 2015-16. Burning of biomass and firewood will not stop. formaldehyde. ecosystems and global climate. The technologies and fuel sources India adopts.

03% 3.15% 64.49% 2.88% 5.7 31-Mar-1990 195.16% 4.89% 51.21% 2.29% 30.9 .89% 4.569 12.44% 42.32% 4.09% 22.16% 21.56% 44.2 31-Mar-1979 84.38% 74.17% 2.182 10. release heavy metals and pollutants that leaches to surface and groundwater.11% 4.67% 2.96% 3.2 31-Mar-1997 315.75% 671.32% 5.02% 5.19% 3.81% 2.150 9.73% 5. The growth of electricity sector in India may help find a sustainable alternative to traditional fuel burning. The problem is not only that India lacks sufficient treatment capacity but also that the sewage treatment plants that exist do not operate and are not maintained.62% 2.57% 2.45% 2.and combustion technologies become reliably available and widely adopted in rural and urban India. rising exports.99% 3. In addition to air pollution problems.670 21.97% 73. wetland and ocean life.01% 464.610 9.20% 5.80% 5.9 31-Mar-1966 30.51% 72.58% 3.76% 11.11% 4.9 31-Mar-1974 55.9 31-Mar-1961 16.57% 59.557 8. The wastewater generated in these areas normally percolates in the soil or evaporates.2 31-Mar-1956 10.098 15. Other drivers for India's electricity sector are its rapidly growing economy. There is a large gap between generation and treatment of domestic wastewater in India.26% 70.455 7. Growth of Electricity Consumption in India Per-Capita % of Total Consumption Consumption (in kWh) Fiscal year (GWh) ending on Agricultur Domestic Commercial Industrial Traction Misc e 31-Dec-1947 4. Reliable generation and supply of electricity is essential for addressing India's water pollution and associated environmental issues. Majority of the government-owned sewage treatment plants remain closed most of the time in part because of the lack of reliable electricity supply to operate the plants.78% 6.36% 5.47% 6.27% 6.60% 14.83% 228.6 31-Mar-1985 124.6 31-Mar-2002 374.83% 329.804 8. The uncollected wastes accumulate in the urban areas cause unhygienic conditions.36% 4.02% 2.65% 4.294 17.3 31-Dec-1950 5.02% 2.10% 171.24% 16.005 9.38% 68.83% 3.99% 5.70% 4.09% 26.42% 74.36% 5.45% 5. lakes and water bodies are severely polluted in India. improving infrastructure and increasing household incomes.75% 45.53% 5. a 2007 study finds that discharge of untreated sewage is single most important cause for pollution of surface and ground water in India.13% 126. Water pollution also adversely impacts river. Almost all rivers.44% 18.31% 16.05% 74.

Karnataka (99.97% 1074.17% 4.14%.17% 1. 258).99% Manipur (91.97% 8. 107). the supply was intermittent and unreliable.600 kWh and 6. Rural electrification As of 31 December 2016.00-99. Madhya Pradesh (99.00% 45.31%.05% 18.83% 44.52%.75% 18. Uttarakhand (99.3%.194 22.95% 8.89% 4. Rural electrificatio State/UT (Electrification rate.98%.00-98.03%. 201). Nagaland (94. 341) Below 80% Arunachal Pradesh (73.80% 43.63% 18. 993). 42).84% 4.46%.65 The per capita annual domestic electricity consumption in India during the year 2009 was 96 kWh in rural areas and 288 kWh in urban areas for those with access to electricity in contrast to the worldwide per capita annual average of 2.672 21.464 villages in India are electrified.301 22.00% 5. Of those who did have access to electricity in rural India. 82) Meghalaya (85. Tripura (98.71% 17. Unelectrified villages) n rate 100% 21 states and 6 union territories Uttar Pradesh (99. 99.53% 8.45% 5.45% 559.99% Bihar (97.05% 44. Odisha (95.11%. West Bengal (99.97% of 597.96%.00% 18.031.562 22.65% 45. 675).00% 883. Andaman & Nicobar Islands 80.29% 8. 1404) India's Ministry of Power launched Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) as one of its flagship programme in July 2015 with the objective of providing round the clock power to the rural areas .89% 2. 95.37% 1010.33%.55%.Growth of Electricity Consumption in India Per-Capita % of Total Consumption Consumption (in kWh) Fiscal year (GWh) ending on Agricultur Domestic Commercial Industrial Traction Misc e 31-Mar-2007 525.9%.77% 42.0 31-March-2016 1.86%.00% 2.10% 1. 39). 90.99% Rajasthan (99. 42).79% 18.2 31-March-2012 785.823 23.12% 7.00-94.4 31-March-2014 881. 2210) Jharkhand (93. 224).55%. 1950).00-89. It focuses on reforms in rural power sector by separation of feeder lines (rural .26%. 332).77%.19% 5. 98. Mizoram (94.88% 914.99% (86.14% 957 31-March-2015 938.40% 1. 1775).200 kWh in the European Union.51%. Chhattisgarh (96.642 22. 14) Jammu & Kashmir (98. 17).31%. Assam (92.20% 1.03%.00% 8.6 31-March-2013 824. 76).

040 Telangana Southern 1.The earlier scheme for rural electrification viz.719 Maharashtra Western 1.419 Sikkim Eastern 685 Jharkhand Eastern 835 West Bengal Eastern 647 Andaman & Nicobar Islands Eastern 361 Bihar Eastern 203 Arunachal Pradesh North Eastern 525 Meghalaya North Eastern 704 Mizoram North Eastern 449 Nagaland North Eastern 311 Tripura North Eastern 303 Assam North Eastern 314 Manipur North Eastern 295 National 1.211 Kerala Southern 672 Lakshadweep Southern 657 Punjab Northern 1.households & agricultural) and strengthening of transmission and distribution infrastructure.655 Tamil Nadu Southern 1. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) has been subsumed in the new scheme as its rural electrification component.169 Rajasthan Northern 1.257 Madhya Pradesh Western 813 Puducherry Southern 1.358 Chandigarh Northern 1.105 Chhattisgarh Western 1.010 .803 Gujarat Western 2.960 Goa Western 1.616 Andhra Pradesh[57] Southern 1.052 Jammu & Kashmir Northern 1.123 Uttar Pradesh Northern 502 Odisha Eastern 1.769 Daman & Diu Western 6.561 Himachal Pradesh Northern 1. Per-Capita consumption Per-Capita Electricity consumption (kWh) (in 2014–15 provisional) Per-Capita Electricity consumption (kWh)[56] (in 2014–15 provisional) Per-Capita Consumption State/Union Territory Region (kWh) Dadra & Nagar Haveli Western 13.858 Haryana Northern 1.356 Karnataka Southern 1.336 Uttarakhand Northern 1.909 Delhi Northern 1.

India has recorded faster growth in electricity generation.Note: Per Capita Consumption=(Gross Electricity Generation + Net Import) / Mid Year Population ELECTRICITY GENERATION India's electricity generation from 1950 to 1985 were very low when compared to developed nations. India's electricity generation has increased from 179 TW-hr in 1985 to 1. Since 1990.057 TW-hr in 2012. Power .

108. oil and hydro plants has decreased in last four years (2012-2016).489 144.446 166.105.552 na 3.226 922.449 66.177. Electricity generation till 2012 Yearly gross electricity generation .413 121.643 na 1.497 2.102 billion Kwh during the year 2015-16 with 6.664 32.260 406 47.214 na na 61.85 GW non- .341 2.451 134.780 1. India had grid connected installed capacity of about 42.649 93.666 na 4.511 871.377 1.167 156.087 1.228 134.075 36.350 na na na 59.449 964.286 130.351.009 na 1.244 1.271.838 1.043. na → data not available.720 907.847 961.604 na na 65.021.224 na na na na na 51.generation by coal fired plants and non conventional renewal energy sources (RES) has mainly contributed to the growth in the total electricity generation whereas the contribution from natural gas.173 billion kWh during the year 2016-17 against the corresponding actual generation of 1.810 14 2012- 691. The CEA generation data is nearly 5% more than the NLDC data which is based on prompt data on daily basis.450 28.866 113.102.426 na 1. especially solar and wind electricity generation. The gross utility electricity generation target (excluding RES and imports from Bhutan) is 1.040 na na na na na 57.781 1.056.838 12 Notes: Coal includes lignite also.872 15 2013- 746.102 129. production and import of coal [66] (in million tonnes) RENEWABLE ENERGY India's renewable energy sector is amongst the world's most active players in renewable energy utilization.387 na 1. As of June 2016.mode wise (GWh) Fossil Fuel RES Utility and Captive Power Sub Year Nuclear Hydro Mini Bio Sub Coal Oil Gas total Solar Wind Other Utility Captive Misc Total hydro mass total 2015- 896.970 16 2014- 835.407 41.359 183.615 1.122 37.578 na 7.611 na 1.600 28.41% annual growth target. India's electricity sector consumes about 72% of the coal produced in the country Demand. The total generation from all renewable energy sources is nearly 15% of the total electricity generation (utility and captive) in India.168.522 34.498 13 2011- 612.868 44.281 32.

[60] New solar installations in India is expected to be 4.3 Off-Grid/Captive Power Biomass (non-bagasse) Cogeneration 651 SPV Systems (>1 kW) 313 Waste to Power 160 Biomass Gasifiers 182 Water Mills/Micro Hydro 18 Aerogenerator/Hybrid Systems 2 Total . 1.831 Waste to Power 115 Total .15% of its total. Renewable energy installed capacity in India (as of 31 March 2016) Capacit Type (in MW Grid Connected Power Wind 26.4 million family biogas plants.[98] As of 31 January 2017.849. ELECTRICITY TRANSMISSION AND DISTRIBUTION Installed transmission (circuit km) and distribution capacity (MVA) up to end of March 2015 Substations [129] Transmission lines [130] Capacity c. India is endowed with vast solar energy. India had deployed renewable energy to provide electricity in 8.7 million square metres of solar water heating capacity. Price history of silicon PV cells (not modules) since 1977. The solar radiation of about 5.762 Small Hydro Power Projects 4.Off-Grid/Captive Power 1.km / MVA ratio[131] (MVA) (c.74 As of August 2011.273 Biomass Power & Gasification and Bagasse Cogeneration 4.800 microhydroelectric units and 4.000 trillion kWh per year is incident over its land mass with average daily solar power potential of 0. about 14. exceeding the capacity of major hydroelectric power for the first time in history.866 Solar 6.conventional renewable technologies-based electricity capacity.Grid Connected Power 42.329. India plans to add about 30 GW of installed electricity generation capacity based on renewable energy technologies by 2017. the installed capacity was 9 GW meeting 1% of the utility electricity generation. installed 4.km) .25 kWh per m 2 of used land area with the available commercially proven technologies.8 GW in 2016-17 with nearly 21 GW development in pipeline.846 remote villages.

The maximum achieved demand factor of substations is not exceeding 60% at 200 kV level.1% by 2017 & to . The length of transmission lines (400 V and above and excluding 220 V lines) is 10.699 765 kV 121.8 km2 (i.644 0.[137][138] Detailed forensic engineering studies are to be undertaken and system inadequacies rectified to evolve into smart grid for maximising utility of the existing transmission infrastructure with optimum future capital investments. on average.547 mi) as on 31 March 2015 in the country. The Government has pegged the national ATC losses at around 24% for the year 2011 & has set a target of reducing them to 17.422 135.000 km (200.43% out of the 4.2 km distance/vicinity) in entire area of the country.432 0.707 200 kV 268.e. However. The all-time maximum peak load is not exceeding 158. The July 2012 blackout.556 As of 2013. The length of high- voltage transmission lines is nearly equal to that of the United States (322.000 mi) (i.e. The spread of total transmission lines (≥400 V) is such that it can form a square matrix of area 36. The introduction of Availability Based Tariff (ABT) has brought about stability to a great extent in the Indian transmission grids.5 km distance). affecting the north of the country.113 billion kWh electricity supplied in USA during the year 2013. was the largest power grid failure in history by number of people affected. at least one ≥13 kV transmission line within 4.678 149. ± 500 kV HVDC 13.558.412 0.058 MW on 9 September 2016. The operational performance of the huge capacity substations and the vast network of high voltage transmission lines with low demand factor is not satisfactory in meeting the peak electricity load. at least one transmission line within 3 km distance) in entire area of the country.500 18. at least one HV line within 10.153 400 kV 192.949 0. Whereas the total ATC loss was only 9.000 mi) of 230 kV and above) but transmits far less electricity.500 9. on average.e. on average.000 km (430.177 km (6.713 MW in the unified grid whereas the all-time peak load met is 156. The HV transmission lines (132 kV and above) installed in the country is nearly 700. India has a single wide area synchronous grid that covers the country The spread of high voltage transmission lines is such that it can form a square matrix of area 416 km2 (i. presently it is becoming outdated in a power surplus grid. India's Aggregate Transmission and Commercial (ATC) losses is 27% in 2011-12.560.

monitoring project implementation.1% by 2022. Multi Commodity Exchange has sought permission to offer electricity future markets in India. Regulation and administration The Ministry of Power is India's apex central government body regulating the electrical energy sector in India. The electricity prices transacted under reverse e-auction facility are far less than the prices agreed under bilateral agreements. in conformity with the Indian government's policy objectives. and faulty electric meters that underestimate actual consumption also contribute to reduced payment collection. It is also responsible for the administration of India's Electricity Act (2003). training and manpower development. Electricity is a concurrent list subject at Entry 38 in List III of the seventh Schedule of the Constitution of India. National Hydroelectric Power Corporation and Nuclear Power Corporation of India. A case study in Kerala estimated that replacing faulty meters could reduce distribution losses from 34% to 29%. This ministry was created on 2 July 1992. policy formulation. hydro power generation. as and when necessary. transmission and distribution. It is responsible for planning. the Energy Conservation Act (2001) and to undertake such amendments to these Acts. and the administration and enactment of legislation in regard to thermal. In India's federal governance structure. The Power Grid Corporation of India is also administered by the . Trading Bulk power purchasers can buy electricity on daily basis for short. Government-owned power companies India's Ministry of Power administers central government owned companies involved in the generation of electricity in India. Damodar Valley Corporation. processing of projects for investment decisions. A high proportion of non-technical losses are caused by illegal tapping of lines.14. These include National Thermal Power Corporation. this means that both the central government and India's state governments are involved in establishing policy and laws for its electricity sector. medium and long term duration from reverse e-auction facility. This principle motivates central government of India and individual state governments to enter into memorandum of understanding to help expedite projects and reform electricity sector in respective state.

Nepal imported 224. Myanmar and Pakistan have proven reserves of 184 billion cubic metres (bcm). Despite low electricity per capita consumption in India. In 2015. Bangladesh.Ministry. and Gujarat Urja Vikas Nigam Limited. it is responsible for the inter-state transmission of electricity and the development of national grid. and Bangladesh imported 500 MW. Bangladesh. the country is going to achieve surplus electricity generation during the 12th plan (2012 to 2017) period provided its coal production and transport infrastructure is developed adequately. Myanmar and Pakistan are producing substantial natural gas and using for electricity generation purpose. and an undersea interconnection to Sri Lanka (India–Sri Lanka HVDC Interconnection) has also been proposed. Kerala State Electricity Board. Bangladesh. Funding of power infrastructure India's Ministry of Power administers Rural Electrification Corporation Limited and Power Finance Corporation Limited.4 mcmd and 34 mcmd are consumed for electricity generation respectively. and asynchronously linked with Bangladesh and Nepal. Maharashtra State Electricity Board. The Ministry works with various state governments in matters related to state government owned corporations in India's electricity sector. An interconnection with Myanmar. Myanmar and Pakistan produce 55 million cubic metres per day (mcmd). India has been exporting electricity to Bangladesh and Nepal and importing excess electricity from Bhutan. There is ample . 1.21 MW of electric power from India. Andhra Pradesh Power Generation Corporation Limited. Tamil Nadu Electricity Board. Examples of state corporations include Telangana Power Generation Corporation. Assam Power Generation Corporation Limited. Foreign electricity trade India's National Grid is synchronously interconnected to Bhutan. 9 mcmd and 118 mcmd out of which 20 mcmd. These central government owned public sector enterprises provide loans and guarantees for public and private electricity sector infrastructure projects in India. Whereas the natural gas production in India is not even adequate to meet its non-electricity requirements. 283 bcm and 754 bcm respectively.

India can also enter into long term power purchase agreements with China for developing the hydro power potential in Brahmaputra river basin of Tibet region.opportunity for mutually beneficial trading in energy resources with these countries. India can supply its surplus electricity to Pakistan and Bangladesh in return for the natural gas imports by gas pipe lines. Similarly India can develop on BOOT basis hydro power projects in Bhutan. India can also supply its surplus electricity to Sri Lanka by undersea cable link. There is ample trading synergy for India with its neighbouring countries in securing its energy requirements. . Nepal and Myanmar.