PROJECT PLANNING AND INTERFACE WITH GOVT.

AGENCIES

S.D.MATHUR AGM (Systems)

5th April, 2011
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PROJECT FORMULATION AND APPROVAL

Need for New Capacities Site Selection Preparation of Feasibility Report Thermal Projects Tie-ups / Clearances Hydro Projects Tie-ups / Clearances Investment Approval
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Need for New Capacities

Growth of Installed Capacity

End of 6th Plan-31.03.1985 End of 7th Plan-31.03.1990 End of 2nd Annual Plan31.03.1992 End of 8th Plan-31.03.1997 End of 9th Plan-31.03.2002 End of 10th Plan-31.03.2007 During11th Plan-Upto 31.03.2010 42584.72 MW 63636.34 MW 69065.19 MW

85795.37 MW
105045.96 143061.01MW 159398.49MW

High potential for Growth

Per-Capita Energy Consumption in Kwh2003 704 Kwh in
India Brazil Russia China UK Australia USA World Average -1800 200

594 2246

2007

India targets to have per capita availability of 1000 KWh by 2012

6303 1440 6755 11446 14057 2490

2200 4200 6200 8200 10200 12200 14200

Source-UNDP Human Dev. Indicators 2006

Large Capacity addition is required to meet the demand

778 GW

425 GW 220 GW 132 GW

Mar-07

2012

2022

2032

Demand considering 8% GDP growth

Source: Integrated Energy Policy GOI
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Site Selection

Siting Criteria of Thermal Power Plant

Broad factors influencing selection of project site (s) a) Availability of suitable and adequate land b) Reliable Source of Water c) Type and Source of fuel d) Distance from Source of fuel e) Port, rail and road access f) Availability of infrastructure facilities g) Siting Criteria of MOEF h) Environmental aspects
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Siting Criteria of Thermal Power Plant

Should be avoided within 25 kms of the outer peripheries of Metropolitan cities National Park and Wildlife sanctuaries Ecologically sensitive areas like tropical forests, biosphere reserves, National Parks & Sanctuaries, important lakes and coastal areas rich in coral formations. 500 m of HTL, a buffer zone of 500 mts should be kept free 9

Siting Criteria of Thermal Power Plant

Chimney should not fall within the approach funnel of the runway. 500 mts. Away from National Highway, Railway and Flood Plains of the Riverine Systems 10 kms away from archaeological, historical, cultural, religious or tourist importance and defence installations No forest or prime agricultural land should be utilized for setting up of TPS, or for ash disposal. Should not be on coal bearing area. 10

Indicative Requirement of Basic Inputs for Coal based Projects

Capacity Range LAND (acres) Main Plant Ash Disposal Township WATER Makeup water (cusecs) Sweetwater for coastal Projects (cusecs) FUEL (Milion Tonne/Annum) Indigenous raw coal 1000 MW 2000MW

650 500 150

40 6

800 1000 250

80 12

5.5

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Indicative Requirement of Basic Inputs for Gas Projects

Capacity range LAND (acres) Main Plant Township
WATER Cooling water (Cusecs) FUEL (MCMD)

650 MW 200 75

1300 MW 300 80

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35

2.9 (33 Tri.BTU)

5.8 (66 Tri. BTU)

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Preparation of Feasibility Report

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PREPARATION OF FEASIBILITY REPORT

Site Specific Studies & Investigations
Topographical Survey Soil Investigation Environmental Impact Assessment (EIA) Study Make-up Water Study Seismic Study Area Drainage Study Geological Mapping Study Coal Transportation / Railway Siding Study Socio-Economic Study Feasibility Report 14

Site Specific Studies/Investigations required for a New Project Site

Preliminary Topographical Survey Broad scope of services includes Development of contours Land use plan Ownership details Preliminary Geo-technical Investigation Field as well as laboratory investigation, analysis and interpretation of data collected and preparation of a Geo-technical report.
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Site Specific Studies/Investigations

Environmental Impact Assessment (EIA) Study - Broad scope includes: Field studies Impact assessment Preparation of the EIA document covering Land Use, Water Use, Soils, Geology, Hydrology, Sediments, Water Quality, Meteorology, Air Quality, Terrestrial Ecology, Aquatic Ecology, Noise, Risk Assessment, Ash Utilization and Occupational Health and Safety. Services (based on 12 months data). EIA report covers the existing environmental baseline conditions, impacts due to operation of the power plant, Environmental Management Plan, post study-monitoring programme, Occupation Safety & Health and Risk 16 Assessment.

Site Specific Studies/Investigations

Seismic Study Broad Scope includes Geological and seismotechtonic set-up of the site covering an area of not less than 150Km radius around the project site. Determination and presentation of design earthquake parameters Area Drainage Study Review and analysis of rainfall information to arrive at design storm scenarios Preparation of digital elevation model for the study area Estimation of flood hydrographs considering historical as well as design rainfall for different return periods.
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Site Specific Studies/Investigations

Socio-economic Study
Assessing

the number of Project Affected Persons (PAPs), overall impact due to land acquisition and establishment of the project on the affected villages and its populace in general and the PAPs , whose livelihood is affected (directly or indirectly) in particular. To establish base line condition, assess the social-economic impacts and to what extent, analyse the impoverishment risk to find out the most vulnerable section of the society and to suggest the initiatives to address these issues. To establish social inventory of affected villages covering the social, cultural, economic, historical, political and environmental aspects. To identify indicators for monitoring the standards of living of PAPs in future. 18

Site Specific Studies/Investigations

Railway Siding Study To examine the feasibility of alternative alignments Identification of serving station on Indian Railways and the requirement of traffic facilities at these stations with reference to facilities already existing. Survey of the selected alignment Assessment of land requirement Hydrological Study Specific information about the river water levels, bed profile (river across-section), velocity of water (magnitude and direction) silt load and gradation etc. during various periods of the year To locate and design rationally, intake-well and other associated structures required for 19 the drawal of water.

CONTENTS OF FR

Need and Justification of the Scheme. Preliminary Analysis of Alternatives Linkage/Availability of Various Inputs Availability of Various Clearances. Energy Absorption Plan Energy Evacuation Plan Financial and Executing Capabilities Plant Technical Features incl. Bill of Quantities Environmental Aspects Project Execution and Mgt. incl Implementation Schedule Cost Estimates Financial Package Tariff Calculations. Establishment Project Viability
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Thermal Projects Tie ups / Clearances

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INPUTS / LINKAGES TO BE TIED UP

Input
Land Availability Water Availability Coal Linkage Gas/Liquid Fuel Availability Fuel Transportation

Agency
State Government State Irrigation Dep't. CWC / MOWR Dept. of Coal (SLC) Ministry of Petroleum & Natural Gas Railways /

GAIL/Oil Companies
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CLEARANCES REQUIRED
Clearance
Clearance for Chimney height Defence Clearance Public Hearing Environment Clearance Forest Clearance R&R of displaced family

Agency
Airports Authority of India Ministry of Defence SPCB MOEF State Forest Department / MOEF Concerned State Govts
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OTHER REQUIREMENTS
Item
Power Evacuation Power Purchase Agreement Financing ICB Clearance Mega Certificate, wherever applicable

Agency
Powergrid/CEA Beneficiaries MOP/DEA MOP MOP

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MEGA POWER PROJECTS: REVISED POLICY GUIDELINES (Dec 2009)

The power projects with the following threshold capacity shall be eligible for the benefit of mega power policy:
(i) The power projects with the following threshold capacity shall be eligible for the benefit of mega power policy:
(a) A thermal power plant of capacity 1000 MW or more; or (b) A thermal power plant of capacity of 700 MW or more located in the States of J&K, Sikkim, Arunachal Pradesh, Assam, Meghalaya,Manipur, Mizoram, Nagaland and Tripura or (c) A hydel power plant of capacity of 500 MW or more (d) A hydel power plant of a capacity of 350 MW or more, located in the States of J&K, Sikkim, Arunachal Pradesh, Assam, Meghalaya,Manipur, Mizoram, Nagaland and Tripura; (e) Government has decided to extend mega policy benefits to brownfield (expansion) projects also. In case of brownfield (expansion) phase of the existing mega project, size of the expansion unit(s) would not be not less than that provided in the earlier phase of the project granted mega power project certificate.

(ii) Mandatory condition of Inter-State sale of power for getting mega 25 power status has been removed.

MEGA POWER PROJECTS: REVISED POLICY GUIDELINES (Dec 2009)

(iii) Goods required for setting up a mega power project, would qualify for the fiscal benefits after it is certified by an officer not below the rank of a Joint Secretary to the Govt. of India in the Ministry of Power that (i) the power purchasing States have constituted the Regulatory Commissions with full powers to fix tariffs and (ii) power purchasing states shall undertake to carry out distribution reforms as laid down by Ministry of Power. (iv) Mega Power Projects would be required to tie up power supply to the distribution companies/utilities through long term PPA(s) in accordance with the National Electricity Policy 2005 and Tariff Policy 2006, as amended from time to time, of Government of India. (v) There shall be no further requirement of ICB for procurement of equipment for mega projects if the requisite quantum of power has been tied up or the project has been awarded through tariff based competitive bidding as the requirements of ICB for the purpose of availing deemed export benefits under Chapter 8 of the Foreign Trade Policy would be presumed to have been satisfied. In all other cases, ICB for equipments shall be mandatory. (vi) The present dispensation of 15% price preference available to the domestic bidders in case of cost plus projects of PSUs would continue. However, the price preference will not apply to tariff based 26 competitively bid project/s of PSUs.

MEGA POWER PROJECTS: REVISED POLICY GUIDELINES

Fiscal concessions/benefits available :
Zero Customs Duty : In terms of the notification
of the Government of India in the Ministry of Finance (Department of Revenue) No.21/2002-Customs dated 1st March, 2002 read together with No.49/2006Customs dated 26th May, 2006, the import of capital equipment would be free of customs duty for these projects. Deemed Export Benefits: Under Chapter 8(f) of the Foreign Trade Policy, Deemed Export Benefits is available to domestic bidders for projects both under public and private sector on following the stipulations prescribed therein.

Price preference to domestic PSUs bidders:

Price preference of 15% may be given for the projects under public sector to domestic bidders who are allowed to quote in US Dollars or any other foreign currency of their choice. 27

Mega Benefits- Typical 1000 MW TPP

S. Description No
1 2 3 Civil Works Equipment Contingency Taxes & Duties Customs duty Excise Duty CST IDC, Proj. Mgt. Total Project Cost

Cost Mega
770 3200 98 78 1 77 846 4992

Cost Non-mega
770 3200 110 503 133 # 302 # 68 926 5509
28 Rs. in Crs.

# Considering 30% Imported component of BTG

Hydro Projects Tieups / Clearances

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Site Selection for Hydro Projects

Broad factors influencing site selection
a) b) c) d)

e)

f)

Installed capacity and dependable energy Project cost and cost of energy Accessibility and existing infrastructure Type of development i.e. storage or Run of River (ROR) Type of structures i.e. dam height, length of water conductor, type of power house etc. Environmental considerations and R&R
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STUDIES FOR HYDRO POWER PROJECTS

Topographical Study Geological & Geotech Study Hydrological Study Meteorological Study Seismic Study Socio-Economic Study EIA Study Construction Material Survey Transportation Study Disaster Management Studies

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CLEARANCES REQUIRED FOR HYDRO PROJECT

Land

confirmation from State Government Water clearance from State Government Clearance from MOWR & CWC regarding water availability from Inter-State / International Treaty angle. Defence clearance, if applicable
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CLEARANCES REQUIRED FOR HYDRO PROJECT

Clearance from Ministry of Social Justice and Tribal Affairs, if tribal population is involved. Environment Clearance from Ministry of Environment & Forests Forest Clearance from MOE&F TEC from CEA

For Projects costing more than Rs 500Crs (Allotted through MOU route) For Projects costing more than Rs 2500 Crs (Allotted through competitive bidding 33 route)

CEAs TECHNO-ECONOMIC CLEARANCE

Appraisal is based on
Technical Feasibility Comprehensiveness Tie-up of Inputs Availability of Clearances Consent from GSI on Geological aspect Consent from CWC on Hydrology Cost Estimates Comparison with other Similar Projects (Least Cost Solution) Power Evacuation Arrangement

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Investment Approval

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Projects approved through Navratna Powers

Under Navratna Powers NTPC Board has approved approval for 17 projects with estimated cost of about Rs 70000 Crs
Project Talcher-II Ramagundam-III Capacity in MW 2000 500

Rihand-II Vindhyachal-III Unchahar-III Kahalgaon-II Phase-I Kahalgaon-II Phase-II F.G. Unchahar-III

1000 1000 210 1000 500 210

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Projects approved through Navratna Powers

Project Sipat-I Sipat-II Barh Korba-III Farakka-III NCTPP-II Simhadri-II Koldam Capacity in MW 1980 1000 1980 500 500 980 1000 800

Loharinag Pala 600 Tapovan Vishnugad 520 Further investment in 3 JV Projects of 3000 MW capacity approved 37

JBIC Role in NTPC Projects

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Japans Official Development Assistance

Outline of Japanese ODA Loan Procedure:

Project Preparation Rolling Plan & Loan Request Examination / appraisal and Ex-ante Project Evaluation Fact finding mission Exchange of Notes and Loan Agreements Implementation (Procurement & Disbursement) Post Evaluation
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JBIC Loan to NTPC Projects

Simhadri STPP Loan Agreement in Year 2002 Amount 5684 Million Yen
North Karanpura STPP Loan Agreement in Year 2004 Amount 15916 Million Yen

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THANK YOU ALL for your kind attention

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