PPP Status: THERMAL POWER

Objective: To Study the Current Status of PPP in Thermal Power Sector and Identify the Challenges involved.

By- Abhishek Agarwal (2012E01)

Contents Key Statistics  Why Privatization  Current Scenario  Legal & Regulatory Environment  Government Initiatives  Challenges  Project Experiences  Conclusion and Way Forward  .

Sector  In 12th Plan: 80% of addition to be done by Thermal Power and 58% by Pvt.207.66 %  44% of 11th Plan Generation by Pvt. 12.006 MW  Thermal Power Contribution. Sector  Funds Allocated: Rs. 6386 billion  Lowest per Capita Consumption.Key Statistics Fifth Largest Generation capacity  Generation as on Aug.600  .

Why Privatization High Cost of Electricity Services  Unreliable Supply  Poor Maintenance  Lack of Investment and Inadequate Expansion  Poor Technological Advancements  Rising Subsidy Burdens  Budgetary Constraints  .

Tata Power. Reliance Power . Tata Power.Current Scenario Generation Private Participation Allowed (1991) Transmission Privatization Allowed Recently Distribution Private Participation Allowed (2003) • Single Buyer Model • Wholesale Competition • Captive Generation Players: Reliance Power . Tata Power Players: Torrent Power. Usually PPP model through Concession Agreement is used License Required Players: Torrent Power. Lanco Power. GVK Power No Model Available.

 Electricity Act Amendments.setup regulatory commissions for  fair & just tariff setting  transparent policy formulations  .Legal & Regulatory Environment (I) Power Sector is in Concurrent List.to attract IPPs to produce and sell only to SEBs. 1998.  Electricity Regulatory Commission Act.1991.

2003 De-licensing of Generation ̶ ̶ ̶ Open Access Captive Power Generation Bulk Purchasing .Legal & Regulatory Environment (II)  ̶ Electricity Act.

Legal & Regulatory Environment (III)  ̶ Electricity Act.contd Distribution licenses ̶ ̶ ̶ Power Trading Formation of SERC mandatory Theft Minimization. Tariff . 2003….

Government Initiatives 100% FDI Allowed  Customs & CVD Exemptions  Tax Holidays for 10 years  FSAs and PPAs  APDRP & National Electric Policy for increased attractiveness  UMPPs  .

Challenges Empowerment of Regulators  Obtaining Clearances  Overlapping Central & State Responsibilities  Reduction of Subsidy  Fuel Supply & Transportation  Poor FSAs and PPAs  T&D Losses  .

1992.33:1 ̶ Equity: GVK. CMS. AP. Asian Infrastructure . ̶ FSA signed with GAIL ̶ PPA signed with AP Transco for 28 years ̶ Financing: D/E Ratio: 2.Project Experiences (I) GVK Plant at Jegurupadu. Germany & India ̶ O&M by Jegurupadu O&M Co. 235 MW ̶ Owned by GVK ̶ Constructed by ABB.

Project Experiences (II) Dabhol Power Plant .

Water. PPA. (CGPL) ̶ Tariff: Rs. 800x5 MW ̶ SPV: Coastal Gujarat Power Ltd. Equipments. 2.Project Experiences (III) UMPP by Tata Power. Clearances ̶ TP Role: Funds. Role: Provide Land. Mundra. FSA. ̶ Govt. 2006. Execution & Operations ̶ FSA with Indonesian Government . Technology.26/KW ̶ Estimated Investments: 16000-20000 Cr.

Conclusion & Way Forward Overcoming Challenges  Increased Competition  Open Access for consumers  PPP in Transmission  Reduce Demand-Supply Gap  .

Thank You .

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