Q.

2
Gross domestic product (GDP) is the monetary value of all the finished goods and services
produced within a country's borders in a specific time period. Nominal GDP estimates are
commonly used to determine the economic performance of a whole country or region, and to make
international comparisons. Energy alone is not sufficient for creating the conditions for economic
growth, but it is certainly necessary. It is impossible to operate a factory, run a shop, grow crops
or deliver goods to consumers without using some form of energy.
Both energy and GDP are related to work. GDP is the goods the average person can
purchase on an average income. Energy is the work done by a unit of energy, which at one time
was the average work by a person. GDP is earnings from the work done by the average person.
Energy is a prerequisite to economic development. The prosperity that economic
development brings, in turn, stimulates demand for more and better-quality energy services. Many
countries have established a virtuous circle of improvements in energy infrastructure and economic
growth. But in the worlds poorest countries, the process has barely got off the ground.
From point of view of economic development Energy has very deep roots in economic,
social and environmental aspects. Energy services provide an essential input to economic activity.
They contribute to social development through education and public health, and help meet the
basic human need for food and shelter. Modern energy services can improve the environment, for
example by reducing the pollution caused by inefficient equipment and processes and by slowing
deforestation. But rising energy use can also worsen pollution, and mismanagement of energy
resources can harm ecosystems.
The United Nations Development Programme defines human development as the creation
of an environment in which people can realize their full potential and lead productive, creative
lives in line with their needs and interests (UNDP, 2004). In this view, economic growth only
means extending the range of human choices.
From Indias perspective, it is the fourth-largest energy consumer in the world, trailing
only the United States, China, and Russia. In 2012 India had the tenth-largest economy in the
world as measured in 2012 U.S. dollars (converted at official exchange rates), and the third largest
economy in the world when GDP is adjusted for inflation and purchasing power. This inflationadjusted GDP has grown at over 7% per year since 2000, although it slowed to just over 5% in
2012 according to the Indian Central Statistical Organization.
India's oil reserves meet 25% of the country's domestic oil demand. As of April 2015,
India's total proven crude oil reserves is 763.476 million metric tons, while gas reserves stood at
1,490 billion cubic metres (53 trillion cubic feet). Oil and natural gas fields are located offshore at
Bombay High, Krishna Godavari Basin and the Cauvery Delta, and onshore mainly in the states
of Assam, Gujarat and Rajasthan. India is the fourth largest consumer of oil in the world and net
oil imports are nearly 820,000 crore (US$120 billion) worth of oil in 2014-15, which had an
adverse effect on its current account deficit.
Thus one can say that Economic growth almost always leads to increased energy use, at
least in the early stages of economic development.

Q.3
The electric power industry is the generation, transmission, distribution and sale of electric
power to the general public. The electrical industry started with introduction of electric lighting in
1882. Since the 1990s, many regions have opened up the generation and distribution of electric

power to provide a more competitive electricity market. While such markets can be abusively
manipulated with consequent adverse price and reliability impact to consumers, generally
competitive production of electrical energy leads to worthwhile improvements in efficiency.
However, transmission and distribution are harder problems since returns on investment are not as
easy to find.
The largest electric power production countries in the world that deal with all aspects of
production and sales of electric power are China (5,810,500GWh), USA (4,297,300GWh) and in
the third position is India with an annual production of around 1,208,400GWh.
The People's Republic of China's electric power industry is the world's largest electricity
consumer, passing the United States in 2011 after rapid growth since the early 1990s. China has
abundant energy with the world's third-largest coal reserves and massive hydroelectric resources.
In 2014, it had the largest installed electricity generation capacity in the world with 1505 GW and
generated 5583 TWh. China also has the largest thermal power capacity, the largest hydropower
capacity, the largest wind power capacity and the largest solar capacity in the world.
The electricity sector in India had an installed capacity of 303 GW as of 30 June 2016.
Renewable Power plants constituted 28% of total installed capacity and Non-Renewable Power
Plants constituted the remaining 72%. The gross electricity generated by utilities is 1,106 TWh
(1,106,000 GWh) and 166 TWh by captive power plants during the 201415 fiscal. The gross
electricity generation includes auxiliary power consumption of power generation plants. India
became the world's third largest producer of electricity in the year 2013 with 4.8% global share in
electricity generation surpassing Japan and Russia.
AT&C losses are Aggregate Technical and Commercial losses. These have two
components: (i) Technical loss and (ii) Commercial loss. Technical and Commercial losses bears
effect on the operational performance of BESCOM and Revenue. Besides this it also indicates
healthiness of distribution system, billing and vigilance systems. As such AT&C losses are one of
the important aspects needs to be kept at minimum possible level to ensure technical and financial
sustainability of the Company.
In India we use the term AT&C losses but in developed countries T&D losses are
calculated because commercial losses are practically non-exist. Power Cuts is one of the most
important issues in the power industry of the country. Governments are on the overdrive to increase
the generation capacity in a bid to reduce the power deficit. But data shows that the Aggregate
Technical and Commercial (AT & C) losses in the country are almost three times the power deficit.
In almost all the states, the power losses are 2-3 times the amount of power deficit.
In India, power distribution to the last mile is done by the Distribution Companies,
popularly known as Discoms. Every state has one or more Discoms in charge of power distribution.
Some states like Uttar Pradesh have five Discoms while some other states like Maharashtra has a
single Discom.
Traditionally, losses in the power sector are accounted as Transmission & Distribution
losses (T&D). These losses are accounted as a percentage of output. T&D losses, as a measure of
grid losses, have been replaced by Aggregate Technical and Commercial (AT&C) Losses for better
clarity. T&D losses together with loss in revenue collection give AT&C losses. As per information
available with the government, the following are the major factors responsible for AT&C losses.
1. Technical Losses
1. Overloading of existing lines and substation
2. Low HT: LT lines ratio- Higher amount of current flow in the system results in
higher losses.
3. Poor repair and maintenance of equipment
4. Non-installation of sufficient capacitors/reactive power equipment

2. Commercial Losses
1. Low metering/billing/collection efficiency
2. Theft, pilferage of electricity and tampering of meters
3. Low accountability of employees
4. Absence of Energy Accounting and Auditing
It is startling to note that AT&C losses are almost three times the amount of power deficit
at an all India level. In 2011-12, the losses were 26.6% of the output while this came down to
25.4% in 2012-13, only a marginal improvement. In most developed countries, the losses are less
than 10% and in Israel, the losses are just about 3%. Our neighbor China has successfully reduced
their AT & C losses to just around 6% since 2010. The following is a small comparison between
the Indian and the Chinese Energy Sector.
INDIA

CHINA

62 million kWh (2011 est.)

5.7 billion KWh (2011 est.)
990,200 bbl/day (2012 est.)

18.67 billion kWh (2013)

7.438 billion kWh (2013)
4.197 million bbl/day (2013 est.)

Natural gas - production

40.38 billion cu m (2012 est.)

117.1 billion cu m (2013 est.)

Electricity - installed
generating capacity
Carbon dioxide emissions
from consumption of energy

303GW as of 30 June 2016

2381GW (approx.)

1.726 billion Mt (2011 est.)

10 billion Mt (2013 est.)

Electricity - exports
Electricity - imports
Oil - production

Q.4
A clear understanding of the strengths, weaknesses, opportunities and threats (SWOT) of
the power industry is a pre-requisite to develop an effective strategic blueprint. Strengths represent
the assets that can be leveraged to act upon the opportunity set. Weaknesses pose constraints on
the extent of actions that the Ministry can take. Threats are key factors that must be actively
addressed to ensure success of overall plan.
Strengths
1. Robust legal, regulatory and policy
framework
2. Power market infrastructure to match
suppliers and buyers
3. Conducive environment to attract private
investments
4. Strong influence through national
champions and deep expertise built across the
power value chain

Weaknesses
1. Competing set of objectives
2. Multiple stakeholders
3. Constitutional limitations to accelerate
distribution reforms
4. Poor track record of delivery projects
against plans

Opportunities
1. Transform the power landscape in India;
change sellers market into a buyers market
2. Improve distribution infrastructure through
central schemes
3. Define agenda to leapfrog to the latest
technology
4. Reduce demand through improved energy
efficiency

Threats
1. Deterioration of financial health of
DISCOMs
2. Lack of fuel security
3. Risk of delayed projects
4. Delays in equipment availability
5. Shortage of manpower in specialized skill
group

Strengths
Robust legal, regulatory and policy framework
Over the last 20 years of power sector reforms we have developed a strong foundation of legal,
regulatory and policy framework necessary for growth of Power sector in India. The earliest phase,
which began in the early 1990s, was aimed to improve the policy climate for private investment.
Later on, the emphasis was placed on regulatory reforms leading to the establishment of
independent regulatory commissions. The enactment of the Electricity Act 2003 led to a deepening
up the reform process through the introduction of a competitive regime in the Indian power sector.
The Act also provided framework for franchisee based participation of private sector in
Distribution. National Electricity Policy together with Tariff Policy Ministry of Power to ensure
that power is made available at reasonable price.
Power market infrastructure to match suppliers and buyers
Policies of the power sector have been successful in creating a power market in India.
Introduction of open access (in inter-state and to some extent in intra-state), rapid expansion of
transmission infrastructure, creation of trading licensees and requisite market infrastructure,
setting up of a power exchange and addition of merchant capacity have created a strong base for
the power trading market.
Conducive environment to attract private investments
Our Policy reforms have successfully been able to attract the private sector into power
generation. Private sector players contribute almost ~32% of total generating capacity addition in
11th Plan and are set to go beyond 60% during 12th Plan. Financial Institutions are forthcoming in
supporting funding requirements of the Power sector today. As a result, there are multiple players
active in the generation and transmission space of the India power sector. Specifically in
generation, large India corporate houses have entered the sector encouraged by the robust
framework. This has since been further cemented by the launch of the competitive bidding process,
which has been successfully utilized in awarding all UMPPs, as well as many smaller projects.
The sector has also attracted investments from global and domestic private equity players. Going
forward, private sector player will make increasing investments in transmission sector as well. The
commercial viability of distribution sector has so far limited participation from private sector
players in Distribution. The Electricity Act already provides framework for private sector
participation in Distribution. States may consider privatization as in Delhi or promote input based
franchisee model as in the case of Bhiwandi of Maharashtra.
Strong influence through national champions and deep expertise built across the power
value chain
We can strongly influence capacity building in generation and transmission sectors through
national corporations like NTPC, NHPC, PGCIL, etc. Our control also provides numerous winwin opportunities, such as knowledge sharing of best practices from NTPC/NHPC/PGCIL to SEB

GenCos and TransCos. Further, PGCIL as CTU is responsible for planning and co-ordination of
the Inter-State transmission system under overall guidance of CEA. The CTU is also the nodal
agency for providing non-discriminatory long and medium term open access as well as
connectivity in ISTS. These companies also help us provide adequate checks and balances on the
private sector. In turn, competition and benchmarking with the private sectors has led to several
performance improvements. Additionally, a large group of committed and experienced managers,
engineers/scientists and bureaucrats have been created though our central agencies. We also have
dedicated institutes for research & development and training to continue building on this strength,
such as Central Power Research Institute (CPRI) for applied research in the field of power
engineering and the National Power Training Institute under the Ministry of Power.
Weaknesses
Competing set of objectives
MOP is often faced with the challenges of managing competing objectives. While there are
many competing sets of objectives, some of them create bigger challenges. For example, while
hydroelectricity is a clean source of power generation, it also creates displacement issues.
Likewise, though we are heavily dependent on coal for generation, many coal blocks have been
designated as no-go areas. Inclusive growth versus market based pricing is another conflict. On
one hand there is a need for inclusive growth to ensure that all segments of the population have
adequate power at reasonable prices. On the other hand, Power utilities must receive fair market
based prices in order to ensure good overall financial health of the Power sector particularly of the
Distribution Companies. There is a need to strike a harmonious balance giving due consideration
to all issues.
Multiple stakeholders
There are a number of critical issues pertinent to power generation that do not fall under our
purview, such as fuel linkages and land approvals. Across the power value chain there are several
ministries, state governments, public and private enterprises that are required to work with each
other while the necessary cross functional linkages are not strong. The need for transparency and
checks and balances creates multiple approval layers which increases the complications faced in
implementing initiatives.
Constitutional limitations to accelerate distribution reforms
The MOP does not have direct influence over end-to-end power landscape. The constitutional
constraint puts limitations on MOPs ability to directly improve intra-state transmission, subtransmission and distribution infrastructure. This particularly impacts rural electrification schemes
(e.g. RGGVY) where final delivery of electricity to households depends upon sub-transmission
infrastructure which is weak in many pockets e.g. in the states of Bihar, Jharkhand, Orissa, Madhya
Pradesh and Chhattisgarh. Similarly the states need to develop projects to avail IT enabled
infrastructure, upgraded funding provided under R-APDRP. While MOP can influence state level
initiatives through provisions in central schemes, MOP is dependent upon states for final execution
and success.
Poor track record of delivery projects against plans
Across our power segments, historically we have been unable to meet our targets. For instance,
in the Tenth Plan the actual capacity addition for generation was only 51% of the actual target.
This not only impacts our credibility but also leads to a large power deficit to the end user, as
capacity targets are established on the forecasted power demand in the country. While the targets
are monitored closely, we are unable to strongly influence the execution due to issues including
contracts, vendor availability, unclear roles and presence of multiple stakeholders, etc.

Opportunities
Transform the power landscape in India by introducing competition across value chain
and market driven pricing of bulk power
There is a strong opportunity to transform the power landscape of India, especially given the
size of the opportunity. The situation is quite similar to that of the telecom and airline industry a
few years ago. This presents a unique opportunity across generation, transmission and distribution
to bring a significant change through involvement of both public and private sectors and provide
Power for all. Private participation in power generation is further set to increase drastically in
the years to come. High capacity transmission corridors are being developed for the IPPs. This
facilitates the development of a conducive environment for the DISCOMs and consumers to access
power at competitive prices in open electricity market. This provides a lifetime opportunity to
bring down the cost of procurement of bulk power by introducing competition and market driven
price discovery mechanism across the value chain.
Improve distribution infrastructure through central schemes
MOP has no direct influence over intra-state transmission, sub-transmission and distribution
infrastructure. However, MOP can use central schemes to assist states in improving infrastructure
within the state. RGGVY and R-APDRP are examples of such schemes in the Distribution sector.
While RGGVY focuses on rural electrification under Power to All, R-APDRP assists states in
reducing AT&C losses through a support for mix of IT enablement and infrastructure upgrade
projects. It also provides for capacity development at state level and financial incentives for the
employees of state utilities.
Define agenda to leapfrog to the latest technology
We are in a unique position as we build power infrastructure in the country. While, more
developed economies are faced with challenges of replacing old infrastructure, in India, with
limited legacy infrastructure. We also have the opportunity to pursue low carbon and energy
efficient technologies for both demand and supply management. Smart grids and smart metering
using two way communication can enable advance metering infrastructure, time-of-day metering
including consumer home energy management systems. Other technologies include Voltage
Source Converter based transmission and controls, High and Ultra High Voltage AC and DC
systems and GIS to reduce land requirements. R&D institutions in the country are adopting the
advanced technological route and professional networking in this respect, and will facilitate
assured scientific return in building up the capability and competency towards leapfrogging
programme.
Reduce demand through improved energy efficiency
With growing concerns about the global environment and Indias own energy security, energy
efficiency is attracting greater attention. Energy efficiency measures can reduce the demand for
new capacity at a fraction of the cost of adding power plants. Furthermore, energy efficiency
measures do not have harmful effects on the local and global environment; nor do they bring about
displacement and other social problems associated with land acquisition and resettlement.
Threats
Deterioration of financial health of DISCOMs
Strengthening of Distribution sector is one of the most critical challenges for the progress of
Power sector in India. Electricity Distribution Companies (DISCOMs) at present are in poor
financial health and have low economic viability. This alarming situation poses a serious risk not
only to the future of the power sector as a whole, but also to the overall growth of the Indian
economy. It is apprehended that financial health of the power sector will be severely impacted and
discourage private participation in generation and transmission as well.

 Lack of fuel security

For generation, there is a need to ensure fuel security both at the macro level and at the plant
level in order to ensure that the capacity is fully utilized. In terms of fuel security, both availability
and price concerns need to be addressed. In terms of availability, we need to ensure adequate
supply of both gas and coal. While there is already a deficit in the country today for coal supply,
this problem will further exacerbate in the future. The supply for coal may be further be hampered
after the introduction of new CEPI guidelines and the fact that many coal blocks fall under the
No-Go areas, as designated by the Mo E&F. Further some of these areas also pose the treat of
local unrest including problems in law and order. In addition to availability, price of imported coal
also poses a threat to fuel security. The price volatility of imported coal coupled with the foreign
exchange uncertainty creates a threat to the overall pricing of coal, especially given the high price
of imported coal compared to domestic. Additionally, the uncertainty of gas pricing will be also
threat to the gas based power plants.
Risk of delayed projects
Delay and cancellation of projects can lead to large power infrastructure deficits that can
potentially deter the growth across all sectors in the economy. Potential delays in land acquisition,
environment/forest clearances, right of way issues, shortage of talent, fuel linkage issues and
limited availability of low-cost finance and equipment are the major factors leading to the delay
of generation and transmission projects. While steps have been taken to overcome these
challenges, more needs to be done.
Delays in equipment availability
Equipment availability will be a major concern going forward for generation and transmission
projects. During the Eleventh plan, several generation projects were delayed due to delay in
availability of major equipments and systems. These deliveries mainly pertained to Balance of
Plant (BOP) equipment and auxiliaries for the plant. Going forward, appropriate vendor
development will be needed to widen the vendor base and other EPC contractors in developing
power plants. Besides, adequate spare inventory will have to be built, until indigenous vendors are
developed for imported equipment spares. In transmission sector there is significant reliance on
imports for specific equipment e.g. sub-station transformers, HVDC, and GIS etc. Going forward
we should aim to develop domestic supply for these equipments.
Shortage of manpower in specialized skill groups
Given the considerably higher capacity-addition target envisaged in the future, the shortage of
skilled manpower such as engineers, supervisors and technicians is bound to become more
pronounced. Shortages exist both at the supervisory and the worker levels. There is an urgent need
to augment availability of skilled and specialized labor. Skills for labor including high pressure
welders, erection and commissioning teams plants need to be developed.
Q.5
Over the past 60 years or so, India has taken rapid strides in the development of the
electricity sector both in terms of enhancing power generation as well as in making power available
to widely distributed geographical boundaries. In order to meet the increasing demand for
electricity, to fuel the economic growth of the country, large additions to the installed generating
capacity and development of associated transmission and distribution network are required.
However, during the past, the power sector was perceived to be riddled with some fundamental
weaknesses, which necessitated initiation of the reform process in the Sector. Even though a
number of policy initiatives have been put in place, the task of transforming the power sector is
yet to be achieved.

India has historically failed to meet its power sector targets by a significant margin and
with tremendous opportunities ahead, the power sector continues to be affected by the shortfall
both on generation as well as transmission side. For example, for the current installed capacity of
around 152 GW, the inter-regional transmission capacity is only about 20 GW (13 percent of the
installed capacity). The various proposals in generation and transmission are currently under
different implementation stages. For the 11th Five year plan various reasons have been identified
for slippage. The target of 78,700 MW capacity additions during 11th Plan was revised to 62,374
MW as per the Mid Term Appraisal (MTA) of Planning Commission. The major reasons for
slippage of power projects from the capacity addition target of 78,700 MW are slippage of power
are Slow progress of Civil works, Poor Geology, Flash Flood, Local agitation, Law and Order
problem, Shortage of Manpower and difficult site Conditions.
To fight with the above challenges is not easy and the Government has taken steps to deal
with them e.g. The Govt. in January 2016 approved several changes to the tariff policy for the
power sector, with the broad objectives of promoting renewable energy, incentivizing exchangebased power trading and shielding the producers from fluctuations in fuel and tax costs due to
government decisions. Also, the Cabinet Committee on Economic Affairs (CCEA) approved Rs.
5,050 crore to be used as viability gap funding for setting up of 5,000 megawatt of grid connected
solar capacity by Solar Energy Corporation of India.
Deen Dayal Upadhyaya Gram Jyoti Yojana, a Government of India scheme was designed
to provide continuous power supply to rural India. The full scheme entails an investment of
43,033 crore, but for 2014-15 the Government has allocated 500 crore. The programme
requires budgetary support of 33,453 crore from the Government over the entire implementation
period.
The Integrated Power Development Scheme is for the urban areas and entails an investment
of 32,612 crore. The programme requires a budgetary support of 25,354 crore for the entire
duration. The earlier scheme Restructured Accelerated Power Development and Reforms for 12th
and 13th Plans will get subsumed in this new scheme.
The CCEA has already approved the 39,275 crore for the scheme, which includes
budgetary support of 35,447 crore under the earlier scheme Rajiv Gandhi Gram Vidyutikaran
Yojana. This outlay will be carried forward to the new scheme in addition to the outlay of 43,033
crore.
The Union Cabinet chaired by the Honble Prime Minister Shri Narendra Modi, approved
a new scheme moved by the Ministry of Power - Ujjwal DISCOM Assurance Yojana or UDAY.
UDAY provides for the financial turnaround and revival of Power Distribution companies
(DISCOMs), and importantly also ensures a sustainable permanent solution to the problem.

Q.6
Central institutions like NTPC and the State Electricity Boards (SEBs) continue to
dominate the power sector in India. India has adopted a blend of thermal, Hydel and nuclear
sources with a view to increasing the availability of electricity. Thermal plants at account for about
60% of the total power generation capacity in India, followed by hydro-electricity (15% share).
The rest comes from nuclear and other renewable energy sources (RES).
Average transmission and distribution losses (T&D) exceed 25% of total power generation
compared. India's T&D losses are almost 2.5 times the world average. The T&D losses are due to
variety of reasons viz., substantial energy sold at low voltage, sparsely distributed loads over large
rural areas, inadequate investment in distribution system, improper billing and high pilferage.

Lack of coal supply was a major hurdle in the power sector till some time back. Majority
of power generation takes place through thermal power plants which uses coal as its raw material.
However, with e-coal auctions coming in the picture, this problem seems to have been resolved
considerably. Major players in the generation space were sitting on sufficient inventories of coal
as at the end of the previous fiscal year. Further, big bang efforts are underway to shift to renewable
source of energy in order to reduce the carbon emission. The government has laid down an
ambitious plan to generate 100 GW of solar power capacity by 2022 from the 3.3GW at present.
This will be a mammoth task to achieve given that land acquisition remains cumbersome.
Presently, major concern for the power generators is the off-take of electricity. Power
generators sell power to SEBs or DISCOMs. SEBs are facing financial crisis and are minting losses
to the extent of Rs 700 billion annually. The SEBs do not have enough resources to purchase power
from the generators. Hence a situation has risen wherein there is excess of power but no takers for
the same.
Land acquisition is also a challenge that is faced by the power sector. Further, obtaining
environmental approvals is also difficult as a large number of government bodies need to be
contacted for clearances, including the Ministry of Environment and Forests, Ministry of Aviation,
Department of Forests, and other government institutions. There is no transparent route and a
number of government bodies need to be contacted for the clearances. These challenges primarily
arise due to concerns over environmental pollution, issues regarding rehabilitation, deforestation
etc.
Barriers to entry for investments are high, especially in the transmission and distribution
segments, which are largely state monopolies. Also, entering the power generation business
requires heavy investment initially. The other barriers are fuel linkages, payment guarantees from
state governments that buy power and retail distribution license.
Tata Power Chief Executive Officer Anil Sardana, in an interview with The Economic
Times said that several power companies are desperate to sell assets as they have equity locked in
projects. While Tata Power recently called off a deal to acquire a power company, Sardana said
more than valuation mismatch, lack of approvals from different stakeholders and government
agencies are major hindrances to M&A activity in the sector.
Even though the competition is getting intense, but despite there being enough room for
many players, shortage of inputs such as natural gas and regulatory hurdles has dissuaded new
entrants.

Q.7
The Electricity Act, 2003 is an Act of the Parliament of India enacted to transform the
power sector in India. The act covers major issues involving generation, distribution, transmission
and trading in power. While some of the sections have already been enacted and are yielding
benefits, there are a few other sections that are yet to be fully enforced till date. The erstwhile Acts
that regulated the electricity sector:

The Indian Electricity Act, 1910

The Electricity (Supply) Act, 1948
The Electricity Regulatory Commissions Act, 1998

The Indian Electricity Act, 1910

Provided basic framework for electric supply industry in India.
Growth of the sector through private licensees. License by State Govt.
Provision for license for supply of electricity in a specified area.
Legal framework for laying down of wires and other works.
Provisions laying down relationship between licensee and consumer.
The Electricity (Supply) Act, 1948
Mandated creation of SEBs.
Need for the State to step in (through SEBs) to extend electrification (so far limited
to cities) all across the country.
Main amendments to the existing Acts
Amendment in 1975 to enable generation in Central sector
Amendment to bring in commercial viability in the functioning of SEBs
Section 59 amended to make the earning of a minimum return of 3% on
fixed assets a statutory requirement (w.e.f 1.4.1985)
Amendment in 1991 to open generation to private sector and establishment of
RLDCs
Amendment in 1998 to provide for private sector participation in transmission, and
also provision relating to Transmission Utilities.
The Electricity Regulatory Commissions Act, 1998
Provision for setting up of Central / State Electricity Regulatory Commission to
with powers to determine tariffs.
Constitution of SERC optional for States. .
Distancing of Govt. from tariff determination.
State Reform Acts:
Orissa (1995)
Haryana (1997)
Andhra Pradesh (1998)
Uttar Pradesh (1999)
Karnataka (1999)
Rajasthan (1999)
Delhi (2000)
Madhya Pradesh (2000)
Gujarat (2003)
Common features of State Acts:
1. Independent Regulatory Mechanism
Constitution of SERC
Powers of tariff fixation, licensing, regulation or working of licensees,
performance standards etc. to SERC
2. Reorganization of SEB
TRANSCO as successor entity
Single buyer model
Separation of generation, transmission & distribution
3. Powers of State Governments to give policy directions to SERCs.
Policy directions also on subsidy

State Governments to compensate licensee affected by direction regarding subsidy.

The salient features of the Electricity Act are as follows:

1. No license is required for Generation and captive generation has been freely permitted.
Hydro projects exceeding the capital cost notified by Central Government however, need
concurrence of the Central Electricity Authority.
2. No license required for generation and distribution in notified rural areas.
3. Transmission Utility at the Central as well as State level, to be a Government company
with responsibility for planned and coordinated development of transmission network.
Provision for private licensees in transmission.
4. Trading, a distinct activity recognized with the safeguard of the Regulatory Commissions
being authorized to fix ceilings on trading margins, if necessary.
5. Open access in distribution with provision for surcharge for taking care of current level of
cross subsidy with the surcharge being gradually phased out.
6. Distribution licensees would be free to undertake generation and trading.
7. The State Governments are required to re-organize the SEBs. However, they may continue
the SEB as State Transmission Utilities and licensees for such time the State and Central
Government agree.
8. Setting up of the State Electricity Regulatory Commission made mandatory.
9. An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. x)
Metering of all electricity supplied made mandatory.
10. Provisions relating to theft of electricity made more stringent.
11. For rural and remote areas standalone systems for generation and distribution permitted.
12. Thrust to complete rural electrification and provide for management of rural distribution
by panchayats, cooperative societies, non-government organizations, franchises, etc.
Q.8
Achievements and Initiatives during the last 2 years by the Ministries for Power, Coal and New
& Renewable Energy.
Reforms:

Ujjwal DISCOM Assurance Yojana (UDAY), the most comprehensive power sector
reform ever, to turnaround DISCOMs through efficiency improvements. UDAY bonds
worth Rs. 1 lakh cr. issued in 2015-16.
Landmark amendments in the Tariff Policy to promote electricity for all, efficiency to
ensure affordable tariffs, environment for a sustainable future and ease of doing business
to attract investments.
State specific Action Plans for 24 X 7 Power for All signed for 18 states and union
territories, and finalized for another 15 states and union territories.
Rationalized movement of 23 million tons of coal leading to potential annual savings of
Rs. 1,371 crore
Mobile applications and websites to ensure accountability and transparency.
1. Grameen Vidyutikaran (GARV) app to help citizens track rural electrification under Deen
Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) (http://garv.gov.in/)
2. Vidyut PRAVAH app created to provide real time information of electricity price and
availability (http://www.vidyutpravah.in/)

3. Unnat Jyoti by Affordable LEDs for All (UJALA) app to keep track of LED distribution
under the Domestic Efficient Lighting Programme (DELP)(http://www.delp.in/)
4. Coal Allocation Monitoring System (CAMS) to give information regarding coal price,
availability and utilization. (http://coalapps.gov.in/cas/)
Power Generation
Highest ever conventional power capacity addition of 24,172 MW in 2015-16.
Revived stranded gas based power generation plants of capacity 11,717 MW with supply
of RLNG in 2015-2016.
Power Transmission
Power Grid commissioned transmission projects worth Rs. 30,300 crore in 2015-16
which is an annual growth of 39%
Transmission bids of around Rs. 1 lakh crore initiated in 2015-16
Highest ever increase in transmission lines by 28,114 km in 2015-16 exceeding target by
19%
71% increase in transmission capacity to South India
Power Distribution
Lowest ever energy deficit of 2.1% in 2015-16 as reported by the States
7,108 villages electrified in one year against the initial target of 2,800 under the Deen
Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
Rs. 1.4 lakh crore outlay for sub-transmission and distribution infrastructure
improvement in urban and rural areas through Integrated Power Development Scheme
and Deen Dayal Upadhyaya Gram Jyoti Yojana respectively
Energy Efficiency
LED distribution more than 9 crore LED bulbs distributed in 2015-16 registering a 150
times growth against 6 lakhs in 2013-14
Procurement price of LED bulbs reduced from Rs. 310 for a 7W bulb in January 2014 to
Rs. 54.90 for a 9W bulb
Energy efficient LED fans and agricultural pumps launched
Coal
Transparently auctioned 31 coal blocks and allocated 43 coal blocks from the 204 coal
licenses that were cancelled by the Supreme Court in 2014
Coal bearing States to get potential revenue of Rs. 3.4 lakh crore over the lifetime of the
mines, from auction and allocation of these coal blocks
Highest ever growth in coal production by Coal India of 74 million tons during a two
year period. Production increase was 32 million tons in 2014-15 (6.9% growth) and 42
million tons in 2015-16 (8.6% growth)
Eliminated coal shortage in thermal power plants with plants having critical coal stock
level (less than 7 days) from two-thirds to none
Reduced import bill by more than Rs. 24,000 crore as a consequence of increased
domestic production of coal
100% crushed coal supply by Coal India to all power plants achieved in 2015-16
15 new washeries with capacity of 113 metric tons to be completed by 2017-18
Third party sampling of coal to resolve disputes between coal companies and power
utilities
New & Renewable Energy
Increasing overall renewable capacity by more than 5 times to 175 GW by 2022

Largest ever wind power capacity addition of 3,300 MW in 2015-16 exceeding target by
38%
Biggest ever solar power capacity addition of 3,019 MW in 2015-16 exceeding target by
116%
Solar projects of capacity 20,904 MW were tendered in 2015-16. Of these 11,209 MW
are already awarded and 9,695 MW are in process
International Solar Alliance of 121 tropical countries to develop and promote solar
energy, to be headquartered in India
First Renewable Energy Global Investors Meet (Re-Invest) held. Received total
commitments of 266 GW by Power Producers in the solar, wind, small hydro and bio
energy sectors and 41 GW by Manufacturers in the solar and wind energy sectors
Sanctioned 32 Solar Parks of capacity 19,400 MW in 20 states
Rs. 38,000 crore Green energy corridor being set up to ensure evacuation of renewable
energy
Clean Environment cess increased 8 times from Rs. 50 to Rs. 400 per ton to finance
Clean Energy Projects and Ganga Rejuvenation
31,472 Solar Pumps installed in 2015-16, higher than total number of pumps installed
during last 24 years i.e. since beginning of the programme in 1991
Corporate Social Responsibility
1.28 lakh toilets constructed for school boys and girls under Swachh Bharat Abhiyan.
Q.9
a. DDUGVY
In rural areas of the country, the agricultural and non-agricultural load (domestic and nondomestic) are typically catered through common distribution network. The availability of power
supply in rural areas is inadequate and unreliable in many parts of the country which results in
frequent load shedding in rural areas to mitigate the gap between supply and demand, which affects
power supply to agricultural consumers as well as non-agricultural consumers owing to common
distribution network.
The demand of electricity in rural areas is increasing day by day due to increase in customer
base, changes in lifestyle and consumption pattern which requires continual strengthening and
augmentation of distribution network. However, the poor financial health of the distribution
utilities has resulted in under-investment in the distribution network leading to poor upkeep and
maintenance of assets, particularly in rural areas. Therefore, strengthening and augmentation of
sub-transmission & distribution infrastructure is also considered necessary to ensure reliable and
quality power supply in rural areas. In order to facilitate sustainable commercial operations of
electricity distribution, it is also important to focus on metering at consumer end for all categories
of consumers.
Apart from metering at consumer end, the metering arrangement at distribution
transformers and feeders would facilitate building up a mechanism for proper energy accounting.
This will help in identifying high loss pockets and initiating remedial measures towards reduction
of losses.
There is also a way of supply of electricity to agricultural consumers and to nonagricultural consumers (domestic and non-domestic) separately through dedicated feeders. This
arrangement allows the distribution company to regulate power supply to agricultural consumers
as and when needed for effective Demand Side Management (DSM) called Feeder Separation. The

core objective of separation of feeders is to provide regulated supply to agricultural consumers and
continuous power supply to non-agricultural consumers in rural areas. For the very purposeDeen
Dayal Upadhyaya Gram Jyoti Yojana one of the key initiatives is launched by the Modi
Government in 2015 for rural electrification which replaces the Rajiv Gandhi Grameen
Vidyutikaran Yojana and is named after the Indian political philosopher Deen Dayal Upadhyaya.
The key people involved are:
1. Shri Piyush Goyal (Minister of State with Independent Charge for Power, Coal and New
& Renewable Energy)
2. Shri. Pradeep K. Pujari (IAS)
Secretary, Ministry of Power,Govt. in India
3. Shri Rajeev Sharma
Chairman & Managing Director, REC India Ltd.
4. Dr. Dinesh Arora (IAS)
Executive Director, REC India Ltd.
Chief Executive Officer,REC PDCL
5. Shri Sunil Kumar
Executive Director, REC India Ltd.
6. Shri T. S. C. Bosh
General Manager, REC India Ltd.
7. Shri G. S. Bhati
General Manager, REC India Ltd.
8. Shri R. K. Gupta
Additional General Manager, REC India Ltd.
The Scheme has the following components:
1. Separation of agriculture and non-agriculture feeders facilitating judicious
rostering of supply to agricultural & non- agricultural consumers in the rural areas;
2. Strengthening and augmentation of sub-transmission & distribution (ST&D)
infrastructure in rural areas, including metering at distribution transformers, feeders
and consumers end;
3. Rural electrification, as per CCEA approval dated 01.08.2013 for completion of the
targets laid down under RGGVY for 12th and 13th Plans by subsuming RGGVY in
DDUGJY and carrying forward the approved outlay for RGGVY to DDUGJY
The existing programme of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) as
approved by CCEA for continuation in 12th and 13th Plans will get subsumed in this scheme as a
separate rural electrification component for which CCEA has already approved the scheme cost of
Rs.39275cr. including a budgetary support of Rs.35447cr. The existing operational Guidelines/
Standard documents/ procedures of RGGVY shall continue to prevail for implementation of
already sanctioned RE projects.
The project formulation under the scheme has a two stage process:
Stage 1:
The 1st stage involves identification of the need of feeder separation and prepare a Need
Assessment Document (NAD), containing all relevant information such as consumer mix,
consumption pattern, voltage regulation, AT&C loss level, HT & LT ratio, optimum loading of
transformers & feeders / lines, reactive power management, power factor improvement, standard

of performance etc. along with justifications (preferably by way of load flow studies) to
substantiate the proposed scope of work and cost estimates. The NAD will then be examined by a
nodal agency to arrive at broad scope of work to be covered under the scheme and the total cost in
consultation with the concerned utilities.
Stage 2:
Based on the broad scope of work validated by nodal agency at 1st Stage, the utilities/ state
will formulate district/circle/zone wise bankable Detailed Project Reports (DPRs) based on
detailed field survey and latest approved schedule of rates for various items of work. The Nodal
Agency then will separately provide comparable costs through Central Public Sector Undertaking
for major equipment for reference of the utility.
The Rural Electrification Corporation Limited (REC) is the Nodal Agency for
operationalization and implementation of the scheme under the overall guidance of MoP. The role
of the Nodal agency is to Notify all the guidelines and formats required for implementation of the
project from time to time, Assess the value and quality of the Detailed Project Reports before
putting up to the Monitoring Committee, Administer the Grant Component and Develop a
dedicated web portal for submission of DPRs and for maintaining the MIS of the projects.
Monitoring the physical and financial progress of the projects including quality of works is also
done by the Nodal agency and in certain cases it can also deploy Third Party services of outside
agencies/manpower for concurrent evaluation of project implementation.
The State Government also plays a very important role which involves providing support
on policy issues on distribution of power in the state, provide required land for sub stations and
facilitate in obtaining other statutory clearances (ROW, forest etc.), to extend the role of the
existing SLSC for RGGVY projects to empower the committee for recommendation of projects
under DDUGJY and support for various other issues.

b. Jawaharlal Nehru National Solar Mission

The Jawaharlal Nehru National Solar Mission (JNNSM) was launched on 11 th January,
2010 by the then Prime Minister Dr. Manmohan Singh. It was a major initiative by the Central &
State Govt. to promote ecologically sustainable growth while addressing Indias energy security
challenge. The mission has a target of 20GW installed capacity by 2022 which was later increased
to 100 GW in 2015 Union budget of India. The project currently is headed by Shri Tarun Kapoor,
Joint Secretary, Ministry of New and Renewable Energy.
According to the National Action Plan on Climate Change India is a tropical country,
where sunshine is available for longer hours per day and in great intensity. Solar energy, therefore,
has great potential as future energy source. It also has the advantage of permitting the decentralized
distribution of energy, thereby empowering people at the grassroots level. Based on this vision a
very ambitious National Solar Mission was launched under the brand name Solar India.
From the point of view of scalability India has a huge solar energy potential (about 5,000
trillion kilowatt-hours (kWh) per year). The solar energy available in a year exceeds the possible
energy output of all fossil fuel energy reserves in India. The daily average solar power plant
generation capacity over India is 0.20 kWh per m2 of used land area, which is equivalent to about
1,4001,800 peak (rated) capacity operating hours in a year with the available commerciallyproven technologies.
From an energy security perspective, solar is the most secure of all sources, since it is
abundantly available. Theoretically, a small fraction of the total incident solar energy (if captured
effectively) can meet the entire countrys power requirements. Today Coal based power generation

is widely used in India and is the cheapest source of power, future scenarios suggest that this could
well change as the country moves towards imported coal to meet its energy demand. The price of
power will thus will increase substantially thus paving the way to look for alternate sources of
energy to meet the long term energy demands.
The objective of the National Solar Mission is to establish India as a global leader in solar
energy, by creating the policy conditions for its diffusion across the country as quickly as possible.
The Mission will adopt a 3-phase approach, spanning the remaining period of the 11 th plan and
first year of the 12th plan (up to 2012-13) as Phase 1, the remaining 4 years of the 12th plan (201317) as Phase 2 and the 13th plan (2017-22) as Phase 3. At the end of each plan, and mid-term during
the 12th and 13th Plans, there will be an evaluation of progress, review of capacity and targets for
subsequent phases, based on emerging cost and technology trends, both domestic and global. The
aim would be to protect Government from subsidy exposure in case expected cost reduction does
not materialize or is more rapid than expected.
The first phase of NSM focused on capturing the low hanging options in solar: on
promoting off-grid systems to serve rural populations and a modest capacity addition in grid-based
systems. This was partly envisaged as a learning experience for the further, ambitious goals. Now,
in the second phase, an aggressive capacity ramp-up is targeted. The aim is to create favorable
conditions for up-scaled and competitive solar energy penetration in both at the centralized and
decentralized levels.
The targets of JNNSM are briefly captured below:
Cumulative Target
S.No.
Segment
Target for Phase1
Target for Phase 3
for Phase2
Utility Grid
1.
Power including 1,000-2,000 MW
4,000-10,000 MW
20,000 MW
rooftop
Off-grid Solar
2.
200 MW
1000 MW
2000 MW
applications
20 million sq.
3.
Solar collectors
7 million sq. metres 15 million sq. metres
metres
The fund requirements for the Mission would be met from the following sources or
Combinations:
i) Budgetary support for the activities under the National Solar Mission established under the
MNRE;
ii) International Funds under the UNFCCC framework, which would enable up scaling of Mission
targets.
The funding requirements and arrangements for Phase II will be determined after a review
of progress achieved at the end of the 11th Plan and an analysis of the efficacy of the model adopted
for capacity building of utility scale solar power.

Q.10
a. PFC
PFC was set up on 16th July 1986 as a Financial Institution (FI) dedicated to Power
Sector financing and committed to the integrated development of the power and associated
sectors. The Corporation was notified as a Public Financial Institution in 1990 under

Companies Act, 1956. The Corporation is registered as a Non-Banking Financial Company

with the Reserve Bank of India (RBI). PFC, which has entered its Silver Jubilee Year in
2010, is a Schedule-A, Nav-Ratna CPSE (conferred by Govt. of India on 22nd June, 2007)
in the Financial Service Sector, under the administrative control of the Ministry of Power.
Its Registered and Corporate Offices are at New Delhi.
The corporation is run by a Board of Directors which the highest decision is making
body. It works through a hierarchy of whole time executives and employees. The objects
and functions of the corporation in relation its customer and clients include providing a
range of services and products in the area of:a) Financial and fund based services;
b) Institutional Development services; and
c) Others include fee based consultancy services.
The Corporation is headed by the Chairman and Managing Director; who at present
is Sh. M K Goel. The company has three wings, each headed by a Functional Director
namely, Commercial Division, Projects Division and Finance & Financial Operations
division. The Commercial Division looks after the credit appraisal and categorization of
borrower entities, power sector reforms, review & analysis. The Projects Division controls
the operation in various states and project appraisal. Finance & Financial Operations
Division looks after the Fund Mobilization and Disbursement. Since its inception, PFC has
been providing financial assistance to power projects across India including generation,
transmission, distribution and RM&U projects. Recently, it has forayed into financing of
other infrastructure projects which have backward linkages to the power sector like coal
mine development, fuel transportation, oil & gas pipelines etc. The borrower profile
includes State Electricity Boards, State sector power utilities, Central sector power utilities
and Private sector companies. PFC is also the nodal agency for the implementation of the
ambitious Ultra Mega Power Plants (UMPPs) and the R-APDRP programme of Govt. of
India. The company also has the mechanism of rating different state Power Utilities on its
performance.

b. REC
Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public
Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969 under the
Companies Act 1956. REC is a listed Public Sector Enterprise Government of India with a
net worth of Rs. 24,857.03cr. as on 31.03.15. Its main objective is to finance and promote
rural electrification projects all over the country. It provides financial assistance to State
Electricity Boards, State Government Departments and Rural Electric Cooperatives for
rural electrification projects as are sponsored by them. REC provides loan assistance to
SEBs/State Power Utilities for investments in rural electrification schemes through its
Corporate Office located at New Delhi and 20 field units, which are located in most of the
States. The Project Offices in the States coordinate the programmes of RECs financing
with the concerned SEBs/State Power Utilities and facilitate in formulation of schemes,
loan sanction and disbursement and implementation of schemes by the concerned
SEBs/State Power Utilities.
To focus attention on human resources development, Corporation has been
sponsoring its Executives and Non-Executives to specialized Training programme
conducted by various agencies and overseas organizations of repute. As on 31.03.2016, it

has on its roll 601 employees, (462 Executives from different disciplines viz. Engineering,
Finance, Economic and specialized cadres and 139 Non-Executives).
REC finances all types of Power Generation projects including Thermal, Hydel,
Renewable Energy, etc. without limit on size or location. The company aims to increase
presence in emerging areas like de-centralized distributed generation (DDG) projects, and
new and renewable energy sources to reach remote and difficult terrains not connected by
power grid network.
In Transmission & Distribution (T&D), REC is primarily engaged in ascertaining
financial requirements of power utilities in the country in the T&D sector along with
appraising T&D schemes for financing. REC has financed T&D schemes for system
improvement, intensive electrification, pump-set energisation and APDRP Programme.
The company is also actively involved in physical as well as financial monitoring of T&D
schemes.
REC also offers loan products for financing Renewable Energy projects. The
company has tied up a line of credit for 100M (approximately 6000M) with KfW under
Indo-German Development Cooperation for financing renewable energy power projects at
concessional rates of interest. Eligible projects include Solar, Wind, Small Hydro, Biomass
Power, and Cogeneration Power & Hybrid Projects.
Since 2005, REC has been appointed nodal agency by Ministry of Power [1] for
Government of India scheme Rajiv Gandhi Grameen Vidyutikaran Yojana aimed at
building rural electricity infrastructure and household electrification towards the National
Common Minimum Programme goal of access to electricity for all. Under the scheme,
90% capital subsidy is provided by Government of India for overall cost of projects which
now has been subsumed under the Deen Dayal Upadhyaya Gram Jyoti Yojana since 2015
by the Modi Government.
REC has set up wholly owned subsidiaries viz. REC Transmission Projects
Company Limited (RECTPCL) and REC Power Distribution Company Limited
(RECPDCL) with a view to pursue new opportunities and challenges in the field of
Transmission & Distribution, including consultancy and monitoring.
c. NTPC
NTPC was set up in the year 1975, as a thermal power generating company, with a
view to augmenting power generated by the State Electricity Boards (SEBs) in order to
bridge the wide gap between the demand and supply of power in the country. At this time,
the total ownership of NTPC rested with the Government of India. In the 1980s, the
company established thermal power stations across the country. In 1987-88, NTPC was
among the first public sector enterprises to start a Memorandum of Understanding (MOU)
system11 with the Government of India. NTPC Limited (also known as National Thermal
Power Corporation Limited) is an Indian Central Public Sector Undertaking (CPSU) under
the Ministry of Power, Government of India, engaged in the business of generation of
electricity and allied activities. It is a company incorporated under the Companies Act 1956
and a "Government Company" within the meaning of the act. The headquarters of the
company is situated at New Delhi. NTPC's core business is generation and sale of
electricity to state-owned power distribution companies and State Electricity Boards in
India. The company also undertakes consultancy and turnkey project contracts that involve
engineering, project management, construction management and operation and
management of power plants. The company has also ventured into oil and gas exploration
and coal mining activities. NTPC became a Maharatna company in May 2010, one of the

only four companies to be awarded this status. NTPC was ranked 400 th in the 2016, Forbes
Global 2000 ranking of the Worlds biggest companies.
The total installed capacity of the company is 47,178 MW (including JVs) with 18
coal based, 7 gas based stations and 1 Hydro based station. 9 Joint Venture stations are coal
based and 9 renewable energy projects. The capacity will have a diversified fuel mix and
by 2032, non-fossil fuel based generation capacity shall make up nearly 28% of NTPCs
portfolio. NTPC is not only the foremost power generator; it is also among the great places
to work. The company is guided by the People before Plant Load Factor mantra which
is the template for all its human resource related policies. NTPC has been ranked as 6th
Best Company to work for in India among the Public Sector Undertakings and Large
Enterprises for the year 2014, by the Great Places to Work Institute, India Chapter in
collaboration with The Economic Times.
NTPC has subsidiaries viz.
1. NTPC Electric Supply Company Ltd. (NESCL)
2. NTPC Vidyut Vyapar Nigam Ltd. (NVVN)
3. Kanti Bijlee Utpadan Nigam Limited, (formerly known as Vaishali Power
Generating Company Limited)
4. Bharatiya Rail Bijlee Company Limited (BRBCL).
NTPC has formulated a long term Corporate Plan to become a 128,000MW
company upto 2032. In line with the Corporate Plan, the capacity addition under
implementation presently is 20,359MW with further 4,050MW in JVs & Sub Companies.

d. NHPC
NHPC Limited, a Govt. of India Enterprise, was incorporated in the year 1975 with
an authorized share capital of Rs. 2,000 million and with an objective to plan, promote and
organize an integrated and efficient development of hydroelectric power in all aspects.
Later on NHPC expanded its objects to include development of power in all its aspects
through conventional and non-conventional sources in India and abroad.
At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with
an authorized share capital of Rs. 1,50,000 Million. NHPC is ranked as a premier
organization in the country for development of hydropower.
Initially, on incorporation, NHPC took over the execution of Salal Stage-I,
Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Project
Construction and Control Board. Since then, it has executed 20 projects with an installed
capacity of 6507 MW on ownership basis including projects executed by NHDC Limited,
a Subsidiary Company of NHPC Limited. NHPC has also executed 5 projects with an
installed capacity of 89.25 MW on turnkey basis. Two of these projects have been
commissioned in neighboring countries i.e. Nepal and Bhutan. During the financial year
2015-2016, NHPC Power Stations achieved the generation of 23404 MU.
Presently NHPC is engaged in the construction of 5 projects aggregating to a total
installed capacity of 4290 MW including 1000 MW (Pakal Dul HE Project) being executed
through JV Company. 10 projects of 7151 MW are awaiting clearances/Govt. approval for
their implementation including 3 Projects of 1186 MW to be executed through
Subsidiary/Joint Venture Companies.

e. PGCIL
PGCIL or Power Grid Corporation Of India Limited is one of the largest power
transmission companies in the world whose primary business is bulk transmission of Power
through its EHV AC (765/400/220 /132kV) and HVDC (500kV) transmission network.
PGCIL has a Global vision to consolidate its presence as a significant player in emerging
markets of South Asia, Middle-East Asia, C.I.S and African countries. PGCIL has made
huge contribution in Govt. of Indias nation building schemes:
a. Accelerated Power Development and Reforms Programme (APDRP).
b. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).
POWERGRID, as Central Transmission Utility (CTU), is the nodal agency for
processing & grant of Connectivity, Long Term Open Access/ Long Term Access
(LTOA/LTA) and Medium Term Open Access (MTOA).POWERGRID has developed a
comprehensive master plan for integration of renewable generation capacity of about
33GW coming up in 8 RE rich States in XII plan through Green Energy Corridors.
i. Implementation of Inter-state transmission system for integration of
Renewable power into the Grid has been taken up by POWERGRID.
ii. The financing of the above projects are envisaged through internal
resources, bilateral (KfW)/multilateral financing, Domestic loans/bonds
etc.
POWERGRID also looks after the Grid Management and Operation in the country
through its 100% wholly owned subsidiary Power System Operation Corporation Limited
(POSOCO). It is the First Power Utility and Second Company in the world to get certified
with Integrated Management System (IMS) as per Publicly Available Specification, PAS
99:2006 integrating requirement of:
i.
ii.
iii.
iv.

ISO 9001:2008 (Quality)

ISO 14001:2004 (Environment) &
OHSAS 18001:2007 (Occupational Health & Safety Management System)
In addition, the company also stands audited for Social Accountability
Standard, SA 8000:2008.