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to a presentation on

POWER DISTRIBUTION SECTOR and NTPC IN POWER DISTRIBUTION

VIVEK JHA
1

Presentation overview:

Introduction and Power Scenario In The Country The Distribution sector : Status and need for reforms Key issues and challenges What is being Done : Reform Initiatives in Distribution NTPCs foray in Distribution sector (NESCL)

Introduction and Indian Power Sector

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Introduction
There is no substitute for energy. The whole edifice of modern life is built upon it. Although energy can be bought and sold like any other commodity, it is not just another commodity but the precondition of all other commodities, a basic factor like Air, Water and Earth. - E. F. SCHUMACHER
(British Economist)
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Introduction

Electrical energy : Backbone of economy 8 % growth in GDP => At least 10 % growth in Electricity industry There has been tremendous improvement and augmentation in Generation, Transmission and Distribution since independence. However, we still have significant shortage of power supply. Distrubution is the key area in power sector

Historical Overview

First electricity generating station in India a small hydro station in Darjeeling in 1896 Total installed capacity in 1947 : 1362 MW. Pre-1948, all generation privately-owned. (Licensed & regulated by Govt. under Indian Electricity Act, 1910) Retail distribution only around generating stations. No transmission. PostIndependence, Electricity( Supply) Act, 1948, aimed to increase access to electricity. creation of SEBs. Govt. becomes owner and operator in addition to being regulator Central sector entry in 1975 Privatization and reforms after 1991 Electricity Act 2003
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GENERATION CAPACITY
160000 146,753 140000

120000 98,184

100000

MW

80000 63,636 60000

40000 28,000 20000 1362 0 1947 1950 1960 1970 YEAR 1980 1990 2000 2008 (As On 31 Oct) 1700 4600 13,000

Installed Capacity : INDIA Vs CHINA

700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1980 1990 INDIA 2000 CHINA 2007
2 ,0 0 80

636 251

299 900 163 268 689 56

6 ,6 6 33 18 0 3 ,0 0

9 ,14 88

Demand Projection
considering 8% GDP growth
778 GW

425 GW 220 GW 132 GW

M a r-0 7

2012

2022

2032
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Source: Integrated Energy Policy GOI

PER CAPITA ELECTRICITY CONSUMPTION (in Kwh per annum)

(Key World Energy Statistics, 2007)

Per CAPITA E CTR LE ICITY CONSUMPTION

India

704 1,802 646 563 1,695 2,980 8,365 2,596

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

C hina

Asia

Africa

Latin Am erica

M iddle E ast

OC ED

W orld Average

K Hper Annum W

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ENERGY AND PEAK DEMAND SHORTAGES

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16 16 14 P E A K DE M A ND SHORT AGE % 12.2 10 11.2 9.6 8.4 7.1 7.3 9.9 12.3 11.7 13.8

12

8.8

E NE R GY SHORT AGE %

2 sour ce : M oP 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 11

PER CAPITA CONSUMPTION OF ELECTRICITY

YEAR
1950 2007 2008 2012 - Target

PER CAPITA CONSUMPTION KWh / per year 15 612 704 1000

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Electricity Distribution Sector

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Electricity supply Chain

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Power Distribution : Analogy with Goods Distribution

Generation

Transmission

Distribution

Consumer

Production

Transport

Distribution

Consumer

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Retailing Electricity : a different commodity

can not be seen, counted in numbers, or measured in kg, litres or metres, can not be put in a container with a forwarding address, on a particular truck taking a particular route, but flows as per laws of physics, can not be stored, and whose availability and cost keep changing widely intermingles with all other supplies in an inevitable pool, and can not have an owners name tag ? There is another peculiarity: the buyer has no control over what the seller supplies, and the seller has no control over what the buyer draws from the pool, and the two may not match !

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Typical Electric Power Supply System.

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Typical Electric Power Supply System.

Generating units that produce electricity; High voltage transmission lines that transport electricity over long distances; Low voltage distribution lines that deliver electricity to consumers Substations, Energy control centres to coordinate

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Cost of Delivering Power to Customer

Installation Cost of Generating Station Rs.40,000/kW

Result = 1 kW load connection to user

T&D Network Cost Rs.40,000/kW

Total Cost Rs.1.0Lac/kW

OH & Tech Losses Rs. 20,000/kW

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Value Addition In Manufactured Goods

Price X MANUFACTURER Payment BUSINESS EXPANSION PROFITS Price X+ X RETAILER ( Y) Payment
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WHOLESALER ( X)

Price X+ X+ Y CUSTOMER

Payment

GSS:P

Last Mile Power Distribution

Raw Material (Pre-Paid)

Power Generated (P)

Transmission

Loss (35%)
Loss(7-11%)

Overpriced Consumer Subsidized P-t-d-tf=64 Average realization = 30 -40 % P-t-d=84u

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tf Theft(10-20%)

Distribution

P-t=95u

Some Facts: EPRI LOSS TABLE

SYSTEM ELEMENT Step Up transformers & EHV transmission system Transformation to intermediate voltage level, transmission system & step down to sub transmission voltage level Sub transmission system & step down to distribution voltage level Distribution lines & service connections Total losses

POWER LOSS (%) Minimum Maximum 0.5 1.0 1.5 3.0

2.0 3.0 7.0

4.5 7.0 15.5

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Worldwide T&D Losses

Country Japan Denmark Germany Singapore Ghana Macau Korea France Australia Canada China South Africa T&D Losses(%) Country 4 4 4 4 4 4.8 5.5 6 6 6 6 6 Switzerland Sweden USA UK Taiwan Italy London Malaysia Thailand Indonesia Mexico Hong Kong T&D Losses(%) 6 6.4 7 7 7 7.4 8.3 10 10.3 12 14 15

INDIA

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The Dream
Power For All

The Reality
The Crisis..!

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Power Characteristics
1.

Highly Capital Intensive Inputs totally pre-paid Instantly delivered Reluctantly paid for, if at all No accounting and accountability

2. 3.
4.

5.

A Sure way from Brightness to Darkness

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GSS:P

FINANCIAL PERFORMANCE OF SEBs

35000 30000 Losses (Rs. Cr.) 25000 20000 15000 10000 5000 0 97-98 98-99 99-2K Year Com mercial Losses(with subsidy) Comm ercial Losses(without subsidy) 2K-01 2K1-02

3 ,1 7 3 7

2 ,8 7 4 3

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Inaccurate energy accounting

Only 45 % power is metered Metered power is only 60 % accurate Whatever is billed-approx 80-85 % is collected Boards are collecting only 1/3rd of the revenue for power supplied

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Gap between cost of supply & tariff increasing due to differential & skewed tariff

G ap Be twe e n Cost of Supply and Av T ariff

400 350 300 250 Paise 200 150 100 50 0 95-96 96-97 97-98 98-99 Year Cost of Supply Av. Tariff
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ply Sup t of Cos

T ari f f erage Av

Gap : 110

Paise

99-00

00-01

2001-02

AT&C LOSS
0
H.P Goa T.N Maharastra U.P Karnataka W.B Rajasthan Punjab Haryana A.P Kerala Gujarat Assam

-20

-40 AT&C Loss (%)

-60

-80

-100 2000-01 -120 2001-02 2002-03

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AT&C Loss

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DISTRIBUTION SECTOR : NEGLECTED ( and therefore, SPOILED CHILD OF POWER SECTOR

GEN 3.5 CR

TRAN 1 CR 2.5 CR DIS

LAST 25 YEARS WE HAVE ADDED APPROX 60,000 MW FOR AN INVESTMENT OF RS. 1.2 LAC CR TRANSMISSION DISTRIBUTION 40,000 CR 80,000 CR CLOSE 30,000 CR ONLY
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One of the main reason for increase in losses in the sector is low investment in the t&d in comparison to the generation.

1 .4 1 .2 1 0 .8 0 .6 0 .4 0 .2 T& D + RE 0 1 s t 2 n d 3 r d T h r e e 4 th 5 t h A n n u a l 6 th 7 t h A n n u aAl n n u la 8 t h 9 th P L A N P L A N P L A N A n n P L A N P L A N P la n P L A N P L A N P la n P la n P L A N P L A N
Investment in generation and T&D including RE should be 1:1

IN V E S T M E N T /E X P E N D IT U R E O N T & D A N D R E 32 IN V E S T M E N T /E X P E N D IT U R E O N G E N E R A T IO

Some Major Concerns in Distribution

Dilapidated Network, Lack of modern technology Metering Billing Collection Power Theft Consumer care Regulatory compliance

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Metering

No Meters ! Defective Meters Meters not read Errors in manual record keeping Customer data updating neglected

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Billing
1. Non-billing 2. Imperfect bills 3. Faulty bill distribution 4. Prolonged disputes 5. Lack of consumer friendly policies 6. Software mistakes 7. Connivance 8. Poor consumer data updating 9. No surveillance

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Power Theft

by Direct Tapping

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Dilapidated Network
Almost 100% of the networks are overloaded which makes the system quite vulnerable to weather conditions. Inadequate reactive compensation leading to poor quality of power supply. Inadequacy of load management leading to peaks and valleys which are beyond manageable limits. Poor reliability of supply.

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Problems Galore

Non-remunerative Tariff Structure and Subsidies Political and Bureaucratic interference Working Culture and Employees morale

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What is being Done ?

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What is being Done ?

Restructuring of SEBs Generate More power, corresponding strengthening of T&D Reduce Losses and improve MBC Professional Management Practices Use of IT Customer orientation

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Restructuring SEBs: What led to Reforms

Cost of supply not realized by SEBs

Lack of commercial focus SEBs set up with social objectives! Statueprovided a sustainable framework

SEBs not recovering statutory ROR System inefficiencies

Unaccounted Electricity.Metering High T&D losses (~30% approx.) Technical, Commercial (Theft) No serious attempts to address issue! Quality of supplyintermittent & poor ( 5-8 hours) Some farmers may be willing to pay for regular & good quality power Driven by political motives! Lack of commercial focus !

Tariff making process

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Restructuring SEBs: What led to Reforms .

Agricultural consumption

Tariff subsidized
Irrigation pumps not meteredWasteful consumption,Inefficient pumps & Illegal

connections Industrial consumers bearing the burden of cross subsidy

SEBs virtual monopoly

No competition or choice Consumers & service obligations ignored Lack corporate governance & accountability No independent body regulating operations Impact Limited improvement in service quality.no incentive or motive! Ability to invest in new projects hampered

Need of the hour

Need for Private sector participation for bridging demand-supply gap Need for bringing in accountability in functioning & operations Need for creating a market choice !
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SEB Restructuring .
Generation

Transmission

SEB ES Act 1948

BY VIRTUE OF BEING INTEGRATED NO SPECIFIC FOCUS ON DISTRIBUTION

Distribution

Customer Customer

NO SYTEM OF ACCOUNTING SEGGREGATION ! WHERE DOES THE PROBLEM LIE?

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Unbundling Accountability!
Generation PPA Tariff ERC Transmission FUNCTIONAL SEGGREGATION ENABLES FOCUS ON EACH SEGEMENT

Bulk Tariff- ERC Distribution Retail Tariff - ERC

Customer Customer

LOSSES IDENTIFIED

ACCOUNTING SEGGREGATION ! IDENTIFES WHERE THE PROBLEM LIES? Unbundling forces profitability raising costs

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Restructuring of power sector set up

Current set up: Single Buyer Model

G nC e o

G nC e o

G nC e o

IP s P

T n m sio C . ra s is n o

D C is o

D C is o

D C is o

D C is o

C sto e u mr

C sto e u mr

C sto e u mr

C sto e u mr

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Restructuring
Future set up: Multi Buyer Model
G era en tor Generator G era en Generator tor G era en Generatortor

T n issio O e A ss ra sm n p n cce TransmissionOPEN ACCESS Open access TRANSMISSION

D tribu is tion Distributor D trib tion is u Distributor E ligib C Customer le u er Eligiblestom

Trader Tra der

D tribu is tion Distributor

Trader Tra er d

Eligible tom E ligib C sCustomer le u er

N on Eligible Non -Eligible Cs u tom er

N on -E ible lig Non Eligible Cs u tom er

Customer

N on -E ligible Non Eligible C tom us er

Customer

Customer

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Some steps that can be taken by the utilities to meet these challenges
- improving metering efficiency; - proper energy accounting and auditing; - improved billing and collection efficiency; - fixing of accountability of the personnel/feeder managers which may help considerably in reduction of AT&C loss; - providing better quality power in terms of voltage fluctuations and reliability by reducing power cuts; - better maintenance, renovation and modernization; - instituting a customer complaint redressal mechanism, which is more responsive and proactive; - adopting better management practices - application of Information Technology.
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Improving Customer Satisfaction

Fully networked Consumer Care Centres Providing ample bill payment avenues Providing better quality power in terms of voltage fluctuations and reliability by reducing power cuts. customer complaint redressal mechanism

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Consumer priorities
Payments Convenience Redressal Management Consumer Relationshi p
Ow n Ch ersh Ad ange ip Re diti on / du cti / Lo on o ad f

Billing

Meters Reading

Fault Management Power Reliability Quality

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New Connection

Electricity Distribution Industry Performance Indices

SAIFI: System Average Interruption Frequency Index

Measures the average frequency of Sustained (>5mts) interruptions per customer

Total no. of Customer interruptions

SAIFI = Total no. of Customers Served

SAIDI: System Average Interruption Duration Index

The average time that all customers are interrupted

Sum of Customer Interruption Durations SAIDI = Total no. of Customers

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Total no. of Customer Interruptions

CAIFI :

Total no. of Customers affected

CAIDI: Customer Average interruptions Duration Index

Represents the average time required to restore service, to the average customer per sustained outage

Sum of Customer Interruption Durations

CAIDI

= Total no. of Customer Interruptions

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Reliability Standards

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Some Recent Initiatives

APDRP RGGVY DRUM Urban / Rural Franchisee in Distribution Power Trading and power Exchange

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INITIATIVES TAKEN ..

Obligation of the State Government Setting up of SERC & Rationalisation of Tariffs Reorganisation of State Electricity Boards Metering of 11 kV feeders & of all consumers Energy Audit at all level Support from Government of India Supply of additional power wherever feasible Assistance for distribution system: APDRP, DRUM Funding for 100% rural electrification: RGGVY Strengthening & improvement of transmission network by POWERGRID: Concessional financing by PFC

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APDRP

Objectives of APDRP :

Improving financial viability of State Power Utilities Reduction of AT & C losses Improving customer satisfaction Increasing reliability &quality of power supply Incentive component Investment component

Components

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Distribution Reforms Six Level Intervention Strategy

INTERVENTIO N
National l evel

ISSUES
Pol icy issues Legal Frame work Standardisation Accounting
GENERATOR

INITIATIVES
El ectricity Bill Committee for standardisation Accounting Standards

100 UNITS

State Level

Tariff fixation Unbundling Subsidies & Budgetary support Restructuring Accounting MIS Erratic frequency Outage Reduction Loss Reduction Reliability Voltage & Accountability

SEBs / STATE UTILITIES Restructure SEB Remove Cross Subsidy Management of Distribution HT Transmission HT Transmission System: System: No theft; No theft; marginal technical marginal technical losses; losses; 400/220 kV Sub-station Conditions Precedent Implementation of Grid code TOD metering

SEB level

Distribution Circle level

132/66 kV Sub-station

100 % Static meters Energy Accounting Responsibility and accountability for billing and collection Scheme for rewards and punishment
Capacity Building Project Management Profit Center District wise Planning Technical upgradation

Consumer Level

Metering Compliance of Billing Consumer satisfaction

Distribution Distribution System: System: Theft + Theft + Technical Technical Losses Losses

Feeder Level

Reliability Erratic Voltages Metering &Billing Collection HT/ LT Ratio

33/11kV Distribution Sub-station

415/220V LT Consumers

Revenue Coll ection

Energy Conservation Act DSM Public Awareness 56 Road Shows Penal provision for theft

Funds Utilized under APDRP INVESTMENT COMPONENT

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Funds Utilized under APDRP INVESTMENT COMPONENT

FU D U N S TILIZ D (R C E s rores )
3500 3009 3000 2621 2500 2418 2176 2000

1500 1090 1000 587 500

0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

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Funds Released under APDRP INCENTIVE COMPONENT

Source: MoP

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Ranking of SEBs

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RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA

RGGVY was launched in April-05 Under the programme 90% grant is provided by Govt. of India and 10% as loan by REC (the nodal agency) to the State Governments. Objectives: Electrifying all villages and habitations as per new definition Providing access to electricity to all rural households Providing electricity Connection to BPL families free of charge Infrastructure under RGGVY: Rural Electricity Distribution Backbone (REDB) with 33/11 KV (or 66/11 KV) sub-station of adequate capacity in blocks where these do not exist. Village Electrification Infrastructure (VEI) with provision of distribution transformer of appropriate capacity in villages/habitations. Decentralized Distributed Generation (DDG) Systems based on conventional & non conventional energy sources where grid supply is not feasible or cost-effective.
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62

DRUM
(Distribution Reform, Upgrades and Management )

Objective:

to demonstrate best commercial and technological practices that improve the quality and reliability of last mile power distribution in selected urban and rural distribution circles

Components:

DRUM Technical Advisory Rural Electrification Program being done jointly by the USA's Rural Utility
Service (RUS) and the Rural Electrification Corporation (REC) of India

DRUM Training Water & Energy Nexus Activity, dealing with the water-energy nexus.
A separate consortium is providing this contract, which deals with rural water-energy issues.

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Urban / Rural Franchisee in Distribution

A franchisee may be an entity empowered by the State to distribute electricity within an identified area for a prescribed duration and collect revenues directly from rural consumers

Who can be a franchisee ?

Non govt. organisation (NGO) Users Association ( UA) Cooperative Entrepreneur, Panchayat Self help groups fulfilling the criteria laid out for this purpose
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Power Trading : Emerging Option for Distribution Companies

POWER TRADING VOLUME
25000

20964 20000

MILLION UNITS

15000 11847

14188

15022

11029 10000

5000 1617 0 1 2001-02

4178

2 2002-03

3 2003-04

4 2004-05 YEAR

5 2005-06

6 2006-07

7 2007-08

Source: CERC

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NTPCs Foray into Distribution

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NESCL
A new wholly owned subsidiary called NTPC ELECTRIC SUPPLY CO. LTD. was incorporated on 21st aug., 2002 to establish its presence in distribution

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MAIN OBJECTIVES

To acquire, establish & operate electrical systems for retaildistribution To undertake works on behalf of others To act as Engineers & consultants

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VISION

To deliver quality power to the Nation by creating models of excellence and benchmarks in electricity distribution thereby achieving customer delight.

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MISSION

To create a role model in the electricity distribution business by setting new benchmarks. To speedily plan and implement distribution networks using state-of-theart technologies. To provide transparent, ethical and prompt services for enhancing customer delight. To adopt creative and innovative techniques for demand-side management and financial viability of the distribution businesses. To provide reliable, uninterrupted and quality power at appropriate tariffs. To achieve effective energy accounting by ensuring accurate metering, timely billing and collection of revenues. To create competent and committed human resource by nurturing technological & commercial competence for organisational growth and excellence.

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NESCLs Core Competency

Resource bank of experienced and committed man power Proven Project Management expertise of NTPC. Time tested system & procedures in the field of contracting/ procurement, Quality Assurance & Inspection Core engineering group backed by 25 years of experience in design & engineering of electrical systems and IT based applications Ability to infuse new and emerging technology Consolidated expertise in the industry derived from the APDRP assignments. Exhaustive data bank of cost estimates, reliable & reputed manufacturers and contractors, including their sub-vendors. Proven capability in Renovation and Modernization . IT capabilities including IT-enabled systems & procedures
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OVERVIEW OF INITIATIVES

of NTPC ELECTRIC SUPPLY COMPANY

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DIRECT
Acquisition of distribution circle Create a model distribution circle Competence in retail distribution Take efficiency improvement measures through introduction of new & innovative technology and IT enabled solutions & services

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INDIRECT

Supplement the initiatives being taken by state utilities, by rendering support in the areas of: Formulation of DPR and processing the sanction of scheme/ loan Assist SEBs in carrying out Energy Audit Design & Engineering Project execution Quality Assurance & Inspection IT enabled applications APDRP consultancy RGGVY
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NESCL: WHERE DO WE STAND TODAY??

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DIRECT ASSOCIATION
Initial efforts to acquire KESCO/ MESCOM Technical due diligence for KESCO carried out in-house Public Relationship (PR) blue print prepared and finalised Feedback from employees Negotiations with representatives of employee unions All information related to HR, Finance, Commercial, Technical and Contracts has been obtained. SBI caps appointed for carrying out the due diligence of MESCOM (Mangalore) Obtained all necessary clearances from the local administration MOU signed with KESCO (GoUP) Draft agreement sent to Govt. of Karnataka & GoUP for their acceptance
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DIRECT ASSOCIATION

CHATTISGARH Parallel licensing in district KORBA Due Diligence is under process M.P. Parallel licensing in district SIDHI Due Diligence is under process GUJARAT Areas of distribution being identified by a committee constituted by MOP
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DIRECT ASSOCIATION

KINFRA

JV with KINFRA for retail distribution of power Areas of distribution Industrial parks/ SEZs under KINFRA Agreement signed with State Govt. and JV formed.

CESU

To be appointed as managers on behalf of OERC Operation in a phased manner Final decision of OERC pending
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INDIRECT ASSOCIATION

ADVISOR TO APDRP PROGRAM LEAD Advisor cum consultant (AcC ) TO MOP INVOLVEMENT IN 12 STATES 5 STATES DIRECTLY (MP,CHHATISGARH,MAHARASHTRA,HARYANA &PUNJAB) To review and suggest action plan for improvement in system reliability To monitor and facilitate the progress of schemes under APDRP in states on behalf of MOP, GOI To impart training to different level of executives of SEB/Utilities in the area of Distribution business for their Capacity building

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INDIRECT ASSOCIATION

Project Execution on behalf of a client Rendering consultancy services in areas of Design & Engineering Procurement & Contracting Project Management QA&I ALL IN THE DISTRIBUTION SECTOR

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ASSIGNMENTS SUCCESSFULLY EXECUTED

Providing project management support to MPSEB, WZ, Indore in the area of Project Management and QA& I. Providing project management support to MPSEB, CZ, Bhopal/ Gwalior in the area of Project Management and QA&I. Design, Engineering, procurement, erection, testing and commissioning of 66KV/ 11KV,2x20MVA sub station at UT Chandigarh. Augmentation of transformation capacity at existing 66KV,1x20MVA sub-station, at Indl. Area II, UT Chandigarh Conversion of 66KV Overhead Transmission line to underground by laying 66KV Single Core XLPE 400 Sq. mm cable. Design engineering, procurement, erection, testing and commissioning of Rural Electrification in the state of West Bengal
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CURRENT ASSIGNMENTS

Turnkey execution of 3x10 MVA, 33/11 KV sub-station with control room at Hotwar, Ranchi. Planning & Monitoring of RE Project in the state of MP, Uttaranchal, Karnataka. Design engineering, procurement, erection, testing and commissioning of Rural Electrification in the state of Chhattisgarh, Madhya Pradesh, Orissa, Kerala, Jharkhand and UT-Lakshadweep. Turnkey execution of projects under APDRP scheme in the districts of Ashoknagar & Shivpuri (MP) Third Party Inspection of Stock Material for UPCL, MPPoKVVCL
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CURRENT ASSIGNMENTS

In 11th plan RGGVY programme NESCL has been entrusted with 22 more projects( in addition of 8 in 10th Plan in West Bengal & M.P.) covering 22 districts for the implementation of rural electrification on turnkey basis in 4 States i. e Chhattisgarh, Jharkhand, Orissa and West Bengal covering approx 40,000 Villages in 30 districts with a sanctioned cost of Rs 2514 crore.

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FUTURE ASSIGNMENTS

Design, Engineering, procurement, testing and commissioning of

2 Nos. 220KV GIS sub stations and associated cabling for Delhi Transco Limited

GIS sub stations and associated cabling for NDMC

Implementation of SCADA in the city of Chandigarh. Providing project management support to JVVNL, Jaipur in the area of Project Management, QA & I and Field Quality for Feeder Renovation programme Planning & Monitoring of RE work in the state of Himachal Pradesh, UTLakshadweep , Kerala Establishment of a central load despatch center for UHBVN for management of load & UI and global accounting Consultancy services for supervision of T&D project under Durgapur Project Ltd (DPL). Design, Engineering, procurement, testing and commissioning
84

Services offered by NESCL

Formulation of DPR Detailed Engineering including preparation of Technical Specifications. Contracts & Material Management Support Complete Project Management Support (Planning & Monitoring) Quality Assurance & Inspection Support Turnkey Execution of Projects IT application support
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Financial performance of NESCL.

Revenue for 2007-08= Rs 41.892 crore (Rs 20.684crore) (PAT = Rs 12.665crore ( Rs 2.933 crore) Dividend =Rs 1.75crore

86

Conclusion

87

Conclusion

Distribution sectors challenges are diversified as technical, financial, historical and political Improvements needed in every area Central & state governments trying to make the sector commercially viable Private sector participation needed but privatization is not the panacea

88

Thank You
ANY QUESTIONS ?
89

Cost of Power

Source: CEA report : Oct 2008

90

Details of the cash loss reduction and incentives released to various states under APDRP are as below:(As on 31 March 2008)
Sl. No. State Claim Year Incentive Amount Recommendedfor released to MoF Amount Released by MoF

1. 2.

Andhra Pradesh Gujarat

2002-03 2001-02 2002-03 2003-04 2004-05

265.11 236.38 148.08 366.82 288.03 105.49 64.94 82.99 297.61 137.89 137.71 73.00 302.76 5.88 115.10 251.94
2879.63

265.11 236.38 148.08 366.82 288.03 105.49 64.94 82.99 297.61 137.89 137.71 73.00 302.76 5.88 115.10 251.94
2879.63

3. 4. 5. 6. 7. 8.

Haryana Kerala Madhya Pradesh Maharashtra Rajasthan West Bengal

2001-02 2002-03 2004-05 2002-03 2001-02 2001-02 2002-03 2003-04 2004-05 2005-06

9.
Total

Punjab

2003-04

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Definition of Electrified Village Prior to October 1997 A Village should be classified as electrified if electricity is being used within its revenue area for any purpose whatsoever. After October 1997 A village will be deemed to be electrified if the electricity is used in the inhabited locality, within the revenue boundary of the village for any purpose whatsoever. New definition of village electrification came into effect from the year 2004-05 (Issued by MOP, vide their letter No. 42/1/2001-D(RE) dated 5th February 2004 and its corrigendum vide letter no. 42/1/2001-D(RE) dated 17th February 2004.) As per the new definition, a village would be declared as electrified, if : 1. Basic infrastructure such as Distribution Transformer and Distribution lines are provided in the inhabited locality as well as the Dalit Basti/ hamlet where it exists. 2. Electricity is provided to public places like Schools, Panchayat Office, Health Centers, Dispensaries, Community centers etc. 3. The number of households electrified should be at least 10% of the total 92 number of households in the village.

Power Cost Comparison

COUNTRY PRESENT COST (In Cents/kWh)

FORECAST FOR 2007 (In Cents/kWh)

Canada Norway Sweden Thailand Egypt India

2 1 2 4 3 9

2 1 2 5 3 12
93