|
|
|
|
Considering the huge targets of generation as well as transmission & distribution of power in India, the private sector has an increasingly important role to play. How is your Ministry encouraging private players?
The Ministry of Power is encouraging private sector participation in all possible ways in generation, transmission and distribution. After opening up of power sector, contribution from private sector has increased considerably. At present, the private sector share is approximately 19% which will be increasing up to 28% by the end of 11th Plan.
The contribution from private sector during 12th Plan would be more as many power plants in private sector have been planned for benefits during 12th Plan. Private sector is likely to add about 60% of the total capacity addition during 12th Plan. Recently, Transmission sector too has been opened to private developers.
In which segments of the power sector can the private sector participate to greater extents?
Private sector can play a very important role in all three sectors viz.
 |
For the progressive growth of the distribution sector it is essential that the sector should become revenue sustainable. Secondly the magnitude of finances involved in the development and subsequent operation and maintenance of distribution infrastructure is quite substantial. The State Government should provide necessary environment for participation of private sector in Distribution.
The key issues faced by the industry include land acquisition, unavailability of sufficient skilled workers, challenges related to coal & water linkages, rising equipment cost and getting various clearances including environmental clearances. What are the steps taken by to address each of these issues?
There are several issues which cause delay in development of power projects. We are coordinating with State Governments and other Ministries like Environment and Forests and Coal to resolve these issues and provide expeditious necessary clearances. To resolve the issue of skilled manpower, we launched the ‘Adopt an ITI’ initiative and have made it mandatory to establish a technical institute along with a power project.
This will also provide employment opportunity to the local population. The steps taken by our Ministry to increase plant manufacturing are also showing results. Four joint venture companies, viz. Bharat Forge with Alstom, L&T with MHI Japan, JSW with Toshiba and GB Engineering with Ansaldo will start manufacturing soon. Doosan from South Korea has also shown interest in putting 100% FDI plant equipment manufacturing facility in India.
About two years back, the cabinet had approved a new hydro policy. What is the progress?
Under this new hydro policy, private entrepreneurs can take up projects on the basis of MoUs till January 2011 and they will be allowed merchant sale of up to 40% of the saleable power. This policy also envisages exemption from tariff based bidding till January 2011, merchant sale of 40% of saleable power is allowed. One per cent free power above the 12% earmarked for local area development is also included in the policy.
This policy which was introduced in 2008 goes one step ahead of the National Rehabilitation and Resettlement Policy (NRRP) of 2007 so far as relief and rehabilitation provisions for hydro power projects are concerned. These provisions shall be applicable even if one family is affected by the development of a hydro power project.
Some key achievements of Power Sector*
Installed generation capacity increased from about 1,23,901 MW as on 31.1.2006 to about 1,61,352 MW with a growth of 30%.
In the 8th, 9th and 10th plan together capacity addition was 56,618 MW, whereas in 11th plan target capacity addition is 78,700 MW (not including captive and renewable).
Projects of over 50,000 MW capacity are presently under construction by private developers.
Private sector likely to add about 60% of the total capacity addition in the 12th Plan.
Incremental flow of bank credit to power sector has increased by nearly 300% from Rs13000 core in April-Nov, 2008 to Rs38,000 crore in April-Nov 2009.
Of the total incremental bank credit, power sector now accounts for over 50% in 2009.
Energy Conservation Building Code (ECBC) launched for five climatic zones (hot & dry, warm & humid, composite, temperate and cold)
A decision was taken that CPSUs implementing a project will adopt the ITI in the area, train local youth and provide them employment. So far 52 ITIs have been adopted (including 8 new ITIs under construction).
To boost power equipment manufacturing capacity, four new joint venture companies are setting their base in India. Capacity of BHEL is also being increased to 15,000 MW by the end of 2009.
Transmission sector opened up for the private sector. Bidding for first three projects costing Rs5800 crore has been completed and LOI for two projects have been issued by REC and PFC has issued LOI for one project. RfQs for three more projects costing Rs4300 crore are being issued.
| Articles | |
 |
Site Map
 |
 |
 |
 |
|  |
COMMENT
Indeed the development envisaged by the Hon Minister as per the plan 11 and 12 are stupendous but how about availing the