Summary of Indian Power Sector-2011

The Ministry of Power has adopted a robust monitoring system for the capacity addition programme so as to see that the projects are executed in time.

There has been a sizeable growth in the power sector as the generating capacity in the country has increased to 185496.62 MW as on 30.11.2011.

The installed capacity sector-wise & type wise as on 30.11.2011 is given below: ( In MW )

Sector Hydro Thermal Nuclear R.E.S (MNRE) Total
Coal Gas Diesel Total
Central   8885.40 36705.00 6702.23 0.00 43407.23 4780.00 0.00 57072.63
State 27338.00 48112.00 4327.12 602.61 53041.73 0.00   3225.92 83605.65
Private   2525.00 18046.38 6713.50 597.14 25357.02 0.00 16936.32 44818.34
Total 38748.40 102863.38 17742.85 1199.75 121805.98 4780.00 20162.2 185496.62

Note:- R.E.S. includes SHP, BG, BP, U&I and Wind Energy.

The details of capacity commissioned during the 11th Plan are as below:

Type Mid-term appraisal target Commissioned (Upto30.11.2011)(MW)
Hydro   8,237   5302
Thermal 50,757 38588
Nuclear   3,380    880
Total 62,374 44,770*

Sector-wise Details

Type Mid-term appraisal target Commissioned (Upto30.11.2011)(MW)
Central 21,222 12,610
State 21,355 14,552
Private 19,797 17,608
Total 62,374 44,770*

Monitoring MechanismNote: This includes a Capacity of 2,186 MW commissioned from additional project.

The Ministry of Power has adopted a robust monitoring system for the capacity addition programme so as to see that the projects are executed in time.  Monitoring of power projects are carried by the Ministry at different levels i.e. by the Central Electricity Authority, by the Ministry of Power, through the Power Project Monitoring Panel (PPMP) and the Advisory Group.  The Eleventh Plan Capacity Addition Programme is also monitored by the Planning Commission, PMO and the Cabinet Secretariat, as well.


Ministry of Power had launched an initiative for development of coal based Ultra Mega Power Projects (UMPPs) each of about 4000 MW capacity under Case-II bidding route employing super critical technology. Pit head projects are proposed as integrated proposals with corresponding, captive coal mines.  For coastal projects imported coal is proposed to be utilized. The UMPPs would be environment-friendly, as super critical technology is proposed to be adopted to derive maximum thermal efficiency resulting in saving of fuel and reduced emissions. Shell companies will be responsible for preparation of Project Report, tie up of various inputs/clearances, appointment of consultants, preparation of RfQ/RfP, etc. Once the developer is selected, ownership of the shell company shall be transferred to the successful bidder.

Four UMPPs namely Sasan in MP, Krishnapatnam in Andhra Pradesh, Tilaiya in Jharkhand have been awarded to M/s Reliance Power Ltd. and Mundra in Gujarat have been awarded to M/s Tata Power Ltd. One unit of 800 MW of Mundra UMPP is expected to come up in the 11th Plan. Request for Qualification (RfQ) for Orissa UMPP in Sundergarh District of Orissa has been opened and is under evaluation.  RfP will be issued shortly. RfQ for Chhattisgarh UMPP was issued.  The date for submission of RfQ has been extended 9 times due to “Go/No-Go” issue and now valid upto 5th March, 2012. Sites in respect of Tamil Nadu UMPP and Andhra Pradesh Second UMPP have been identified.  Efforts are being made to bring them to bidding stage at the earliest. Efforts are being made for selection of sites for remaining UMPPs.


Open Access

Operationalisation of open access

Open access is one of the key features of the Electricity Act, 2003.  Open access in inter-state transmission is fully operational.  To give a fresh impetus to implementation of open access over transmission lines of State utilities and over the distribution networks, a Power Ministers’ Conference was held on 28.4.2010 in which it was resolved that non-discriminatory open access in intra-State transmission and distribution system would be provided in letter and spirit as per the provisions of the Electricity Act and the National Policies.  This was followed by a Working Session on Open Access in distribution sector of electricity held on 16.7.2010.  The issue of open access was also emphasized in the Group of Ministers on Power Sector Issues in its meeting held on 29.10.2010 and 13.7.2011 under the chairmanship of Minister of Power.

Further, the Ministry of Power in consultation with M/o Law & Justice/Ld. Attorney General of India has issued clarification vide letter dated 30.11.2011 that “all 1MW and above consumers are deemed to be open access consumers and that the regulator has no jurisdiction over fixing the energy charges for them”.  All concerned have been requested to take necessary steps for implementing the provisions relating to open access in the Electricity Act, 2003 in light of the said opinion.

Task Force on measures for operationalizing open access in power sector

The 2nd Task Force on measures for operationalizing open access in power sector constituted under the chairmanship of Member(Energy), Planning Commission has deliberated on the issues and the report is under finalization.

Amendment in Tariff Policy

The Tariff Policy was amended on 20.1.2011 for fixing a minimum percentage of the total consumption of electricity in the area of a distribution licensee from solar energy in accordance with the National Solar Mission strategy. The minimum percentage for purchase of solar energy will go up to 0.25% by the end of 2012-2013 and further up to 3% by 2022.

Tariff Policy has been further amended on 8.7.2011 granting further exemption to hydro projects and certain transmission projects from tariff based competitive bidding.

Regulations notified by Central Electricity Authority under the Electricity Act, 2003 during the year 2011

The Central Electricity Authority (Safety Requirements for Construction, Operation & Maintenance of Electrical Plants & Electric Lines) Regulations, 2011 were notified on 24.1.2011.

Rajiv Gandhi Grameen Vidyutikaran Yojana

The Central Government launched the scheme “Rajiv Gandhi Grameen Vidyutikaran Yojana” (RGGVY) of rural electricity infrastructure and household electrification in 2005 for the attainment of the National Common Minimum Programme (NCMP) goal for providing access to electricity to all households in the country.  This programme has been continued in the 11th Plan.  This is one of the flagship programmes of the Central Government.  In this programme, the Central Government is providing 90% of the project cost as subsidy.

So far, 578 projects targeting to electrify about 1.10 lakh un-electrified villages, intensive electrification of about 3.47 lakh already electrified villages and to provide free electricity connections to 2.26 crores BPL households have been sanctioned and are under implementation. However,  the Bharat Nirman Target for RGGVY is to electrify one(1) lakh un/de-electrified villages and release of electricity connections to 175.00 lakh BPL households by March, 2012. Cumulatively, as on 30.11.2011, 100100 un-electrified villages have been electrified, 2,28,507 already electrified villages have been intensively electrified and free electricity connections to 1,76,53,705 BPL households have been released.  It is evident that the Bharat Nirman targets have been achieved.

During the year 2011 (from January, 2011 to November, 2011),  rural electrification achievements under RGGVY are as under:

Villages Nos. BPL households
I Un-electrified 10,425 35,83,352
II Electrified 58,488


Cumulatively, as on 30.11.2011, Franchisees have been deployed in 1,48,399 villages (37,832 villages during the year 2011) in 17 States.

Re-structured Accelerated Power Development and Reforms Programme (R-APDRP)

The Re-structured Accelerated Power Development and Reforms Programme (APDRP) for XI Plan as a Central Sector Scheme was approved by CCEA on 31st July-08. The projects under the programme are being taken up in two parts i.e. Part A & Part B in urban areas – towns and cities with a population of more than 30,000. Investment in Part-A is for establishment of IT enabled Baseline System for energy auditing and accounting and investment under Part –B is for strengthening of sub- transmission distribution system. The Power Finance Corporation has been designated as nodal agency for operationalsing the programme.

Achievements in implementation of R-APDRP during the period of January, 2011 to 15th December, 2011 are indicated below:


Under Part ‘A’ of Restructured APDRP, 1 project worth Rs. 19.51 Crores was sanctioned.


Under Part-A (SCADA), 42 projects worth Rs.914.19 Crores were sanctioned.


Under Part-B of R-APDRP, 264 projects worth Rs.8803.75 crores were sanctioned.

Under R-APDRP, Rs.996.63 crores as loan was released to PFC for disbursement among the Utilities against the project sanctioned for Part-A & Part-B and Rs.56.86 crores was released to PFC as grant.


Standard & Labelling (S&L)  programme

As on date Bureau of Energy Efficiency(BEE) has successfully registered 14 products under the S&L scheme out of which 4 products are under the mandatory labeling regime, these are frost free refrigerator, room air conditioner, Tubular Florescent Lamps (TFL) and distribution transformer. The other products under the program are direct cool refrigerator, induction motor, agriculture pump sets, ceiling fan, LPG stove, electric storage type geyser, colour television, washing machine, laptop and Air Conditioner of cassette, low static duct, ceiling/floor standing tower models (type B). There have been 4856 fresh approvals given to different applicants of star labeled products upto November 2011. The mass consumer awareness has been through different mass media approach. Huge impact has been created in the program.

There has been a verified energy saving of 2162 MW of avoided generation capacity during the year 2010-11 due to implementation of S&L Scheme. The unverified energy saving up to two quarters of the year 2011-12 is reported to be 1045 MW of avoided generation capacity.

Energy Conservation Building Code Programme(ECBC)

Harmonization of ECBC with National Building Code (NBC) is in process by incorporating a new chapter “Approach to Sustainability”. BEE has developed model building bye-laws to mandate minimum energy standards for residential and commercial buildings/complexes.

Window labeling programme has been developed and is under finalization. Under Star Rating Programme for buildings, which is based on actual performance of the building, labels for day-use Office buildings, BPOs and shopping malls have been developed. Till date, 130 buildings have been labeled under the various categories of buildings.

Bachat Lamp Yojana Programme

BEE has received 65 BLY projects for inclusion in the registered BLY Programme of Activity.

The Clean Development Mechanism (CDM) Executive Board has included total 42 projects. 245 Lakh CFLs have been distributed so far in various states of India – Karnataka, Andhra Pradesh and Delhi.

BEE has reviewed empanelment of CFL investors. 18 investors have been re-empanelled by BEE for ready reference of Distribution Companies. 18 states have initiated the implementation of BLY.

Web based interactive Database Management system is being developed for interacting with the stakeholders.

BEE has revised the procedures in the BLY Administration Manual to meet the requirements of ISO 9001.

Contribution to State Energy Efficiency Fund (SECF) Scheme:

SECF is a statutory requirement under section 16 of the Energy Conservation Act 2001. In this regard, the Ministry of Power has approved a scheme “Contribution to State Energy Conservation Fund (SECF) by the Bureau of Energy Efficiency”. Till now 23 State Governments / U.T. Administration have already established their SECF and Rs. 48.00 Crores have been disbursed to 21 states.

Energy Conservation Awareness, National Energy Conservation Awards & National Level Painting Competition for School Children (2011)

EC Award function was successfully held on 14/12/2011 at Vigyan Bhawan. The 642 participating units of EC Award 2011 have collectively invested Rs.2201 crores in energy conservation measures & achieved a monetary savings of Rs.2390 crores last year, implying a very short payback period of 11 months only, once again proving the fact that energy conservation is a least cost option.

The participating units have also saved electrical energy of 3421 million kwh, which is equivalent to the energy generated from 504 MW thermal power station at a PLF of 0.775. In other words, these participating units have avoided the installation of power generating capacity equivalent to 504 MW Thermal Power Station in 2010-11.

The National Painting Competition on Energy Conservation 2011 at School, State & National Level was a resounding success. The Competition is aimed at motivating the children towards energy conservation & offers them a chance to explore their creativity.

Across the country, 58855 Schools and 20.72 lakhs students of 4th, 5th & 6th standards of the 35 States & UTs participated. This participation was about 33% higher than that in the previous year, which is quite encouraging.

National Mission on Enhanced Energy Efficiency


The targets for reducing specific energy consumption in 477 designated consumers across 8 industrial sectors have been approved by Ministry of Power. The total national target of energy saving to the tune of 6.6 million tons of oil equivalent has been kept in the 1st PAT cycle which will be 3 years from the date of notification period. Energy Audit in all DCs have been initiated to explore the potential avenues of energy saving. Baseline Energy Audit in 343 industries has been completed as per the status received from Energy Efficiency Services Limited (EESL). About 50 workshops were conducted to consult stakeholders like designated consumers, regulators, energy auditors & managers, energy exchanges, State Designated Agencies, Industrial associations etc.


MoU with M/s. PTC India Ltd, M/s. SIDBI and HSBC Bank has been signed by BEE. PTC India Ltd. has commenced financing of several building energy efficiency projects in Presidents Estate, ESIC Hospitals at Rohini and Jhilmil, AIIMS, Safdarjung Hospital. SIDBI has taken up project preparation of energy efficiency projects in 25 SME clusters which will then be offered financing. Investment grade energy audits have been completed for large public buildings in the country. Capacity Building is being done through Empanelment of ESCOs duly validated through ICRA and CARE. BEE has initiated the work through International Institute of Energy Conservation (IIEC) and HSBC to develop the module for imparting training to bankers. Round table conference and pilot training programme for financial institutions (FIs) were held in Mumbai during June 2011.


Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE)

With the process already underway, the funds will be duly notified and operationalized.

Mega Power Policy

Mega Power Policy was introduced in November, 1995 for providing impetus to development of large size power projects in the country and derive benefit from economies of scale.  These guidelines were modified in 1998, 2002, 2006 and 2009 to rationalize the procedure for grant of mega certificate and facilitate quicker capacity addition.  The Government has been receiving representations from the industry that there has been delays in signing of Power Purchase Agreements (PPAs) as per National Electricity Policy (NEP), 2005 and Tariff Policy, 2006 which is a mandatory for grant of mega power status.

The Government has since considered the matter in consultation with Ministry of Finance, Department of Revenue.  Accordingly, the provision of granting provisional mega power status certificate have been added in the mega power policy guidelines in August 2011 to further facilitate implementation of mega power policy.  9 power projects totaling capacity of about 18,520 MW have been granted mega power status and 17 power projects totaling capacity of about 22,540 MW have been granted provisional mega power status during the year 2011.




Mechanical engineer with experience in Power Plant maintenance , operation and auditing for ISI marked products. MBA in Power Management from National Power Training Institute, Faridabad. Working as Consultant for Bridge to India Pvt. Ltd. Expertise in: 1) Power sector regulations 2) Financial Modelling 3) Project Development solar PV plants 4) Strategic consulting 5) Report writing

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