International Conclave on Key Inputs for Accelerated Development of Indian Power Sector for 12th Plan and Beyond

Capacity Building for Transmission system - Supply & Execution

18TH August 2009

Presented By: Rajeev Dalela KEC International Limited

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Contents..
Indian Economy Present Status Indian Power Scenario An Update The 11th Five year plan & beyond Industry capacity Challenges

Indian Economy Present Status

Indian Economy on revival path? Economy estimated to grow at 6 % in 2009-10 according to RBI, weakest GDP growth projection in seven years due to weak monsoon & impact of global downturn. Indian business has started showing signs of recovery driven by strong domestic demand after the dismal performance during last year. Fiscal & monetary stimulus measures initiated in 2008-09 coupled with lower commodity prices has catalyzed domestic demand. Encouraging IIP data rekindles revival hope, Industrial output jumped by 7.8% and power by 8% in June 09. Constrained private investment in Infrastructure projects due to inadequate shelf of bankable projects and shortage of long term finance for projects
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Indian Power Scenario An Update

11TH Plan Power Sector Update

Power deficit has increased over the year to 11.1% in FY09 with peak deficit at 11.9%. Regional situation is chronic with western region having peak deficit of 19% in FY09. T&D losses continue to be on the higher side. (approx 27%) Under Investment in T&D Sector . The present investment in Generation and T &D Sector is 1:0.5 as against the desired ratio of 1:1.

11TH Plan Power Sector Update

Against target Generation capacity addition of 78,700 MW generating capacity of 80,610 MW is under execution
15,036 MW 19% already been commissioned (Aug09) -

65,574 MW Projects are under construction - 83.32%

Inter-regional transmission capacity addition to reach 37,700 MW by March 2012, as of now 20,700 MW has already been reached.

CAPACITY UNDER EXECUTION 80,610 MW

Hydro Central State Private TOTAL 8654 3362 3491 15507 Thermal 21496 22001 18226 61723 Nuclear 3380 0 0 3380 Total 33530 25363 21717 80610

STATUS OF COMMISSIONING OF TRANSMISSION PROJECTS

Transmission Lines

Unit

Target upto 11th plan March 2012

Existing March 2009

765 kV HVDC +/- 500 kV 400 k V 230/220 kV Total Transmission Line

CKm CKm CKm CKm CKm

7850 7432 125000 150000 290282

3118 7172 89496 122960 222746

The 11th Five year plan & beyond

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The 11th Five year plan & beyond

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11TH Plan & Beyond : Generation

YEAR 2006-07- 10th Plan 2011-12- 11th Plan 2016-17 12th Plan 2121-22 13th Plan

Capacity Addition (MW) 21,180 78,700 96,129 151,893

Total Installed capacity (MW) 132,330 210,907 307,036 458,929

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Transmission: BOO Projects

Private sector participation in Transmission Sector BOO basis by IPTCs is under progress. projects on

Bidders selected through Competitive Tariff based bidding. WRSS-II B & C are the 1st projects in India to be implemented by IPTC selected through Tariff based bidding at an estimated cost of Rs.1500 Cr. RFQ invited for 3 new project in Dec08. Nodal Agencies to Co-ordinate the bidding Process : REC and PFC. Projects Comprising of 765KV & 400KV Lines & Sub Stations. Post RFQ the selected Bidders to submit RFP for : North Karanpura Talcher II Transmission System NER/ER Surplus power to NR Rs. 2,700Cr. Rs. 1,400Cr. Rs. 1,700 Cr.

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Transmission: BOO Projects

8 Future projects identified ( Apart from 3 in process) Total Value Rs.12000 Crores approx. Kawas Navsari. Navsari Mumbai. Evacuation System for Barh-II.

Evacuation System for Nabinagar.

Evacuation system for Daripally Integrated Project. Evacuation system for Lara Integrated Project. Evacuation system for Simhadri Extension. SR-WR Synchronous Inter-Connector.

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Transmission Industry

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11TH PLAN INTERSTATE TRANSMISSION LINE ADDITION

Interregional Transmission Capacity (MW) December 2008 Achievement 1100 9300 2500 3000 200 1800 17900

Type 765 400 HVDC bipole HVDC back to back HVDC monopole 220 Total

2012 (Target) 9800 16400 5500 4000 200 1800 37700

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Present Inter-regional Capacity 20,800 MW

11th & 12th Plan : Transmission lines targets

RATINGS
765 KV 500HVDC 400KV 220KV TOTAL cKm cKm cKm cKm cKm

XI Plan
5,428 5,206 49,278 35,371 95,283

XII Plan
8,000 4,500 51,000 50,000 113,500

1200 KV UHVAC Super Grid Planned in 12th Plan

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Power Grid : Business Environment

The 11th five year plan envisaged an investment of Rs. 55000 Crores by Power Grid. Interregional power transfer capacity to be increased to 37,700 MW by 2012 under Phase-III of National Grid Programme. Majority of the schemes associated with UMPP and Regional system strengthening finalized now. Plans to Increase total Transmission lines by over 45% between FY08-12 (by adding 29,907 cKm). Doubling transformation Capacity by adding 74,720 MVA between 2008-09 and 2011-12. Field test for 1200 KV UHVAC in collaborative effort with equipment manufacturers is under progress at Bina in Madhya Pradesh.

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State Utilities: Business Scenario

The transmission systems in most of the states is being

upgraded/revamped after years of neglect and lack of investments

by the state utilities. With rapid industrialization and growing power requirements, many states decided to set up high capacity intra-state power

transmission systems. The majority of the new projects are 400 KV voltage ratings with twin, triple and Quad bundle configurations. Different utilities follow different specifications and in many cases the specifications have not been updated for last several years. PPP (Public Private Partnership) model is being adopted by many utilities to attract private investment in transmission sector
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Private Sector : Initiatives

18,177 MW is expected to be added by IPPs/MPPs being developed by Private Sector during the 11th plan. Non availability of capacity in the existing transmission systems has necessitated setting up of dedicated transmission lines by these developers. Some developers have tied up with state/Central Utilities to set up the transmission lines either on JV or on consultancy basis. Private developers like ESSAR,JAYPEE & Adani are setting up interstate transmission lines by directly inviting bids. Many projects of similar nature are expected to be floated as transmission capacities are not expected to be available in near future as well.

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11TH Plan & Beyond Capacity Requirement ( 2009-2012) Expected : CKT Kms - 181,050 Kms

Tower Requirement 4,962,000 MT

Stringing 181,050 Kms

Annual requirement for next 8 years Tower Supply 620,000 MT Stringing 22,650 Kms

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Annualized Requirements Supply & Execution

A) STRUCTURES.. Requirement Per Annum
Tower (PGCIL) Tower (SEBs/ IPTCs) Swt Yrd Structures Total REQUIREMENT ~ ~ ~ 345,000 MT 175,000 MT 100,000 MT 620,000 MT

B) STRINGING
PGCIL SEBs/ IPTC Total ~ ~ ~ 16,000 KMS 6,650 KMS 22,650 KMS
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Tower Manufacturing Trend

700000 600000

Tonnage in MT

500000 400000 300000 200000 100000 0

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Capacity Build-up

THE INDUSTRY HAS ADEQUATE CAPACITIES TO MEET THE DEMAND

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Tower Manufacturing - Capability vs. Production

INCREASING CAPACITY vs. UTILIZATION GAP

CAPACITY UNDER UTILIZATION REMAINS MAJOR CONCERN

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Stringing Capabilities

2003-04 No of TSE MACHINES % INCREASE 60

2004-05 75 25%

2005-06 88 17%

2006-07 102 16%

2007-08 118 14%

2008-09 132 14%

Stringing execution capacity increased by over 30% from 2007. TSE machines added after 2005-06 are suitable for Quad conductor stringing 400/765 KV. Recently new TSE M/c additions are being done for Hexagonal conductor stringing for 800 kV HVDC lines.

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Challenges

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Challenges
Timely Placement of Orders for capacity planning & utilization. Long gestation period between NIT and Award of Contract. Delays in Right of way and Forest clearances. Technology up gradation in construction. Acute skilled Manpower Crunch both Managerial and supervisory. Non - Standardization of Specification among Utilities in many cases not updated for many years. Commercial conditions such as terms of payment, Price Variation clauses are often not rational and lead to unrealistic price levels. Fast resolution of Contractual Issues and early closure of contract.
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