Power Transmission Sector

• 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.• The Estimated total fund requirement for transmission by 12th Plan i.e.

2016-17 has been assessed as USD 42 Billion. • 100% FDI permitted in Generation, Transmission & Distribution - the

Government is keen to draw private investment into the sector. • Total outlay for transmission sector in the XII Plan is estimated at Rs.2.4

trillion.• Total Fund requirement for transmission system development and related

schemes as estimated at the beginning of XI plan was Rs 1,40,000 Crore(Central Sector- Rs 75,000 Crore, and State Sector- Rs 65,000 Crore)

Transmission Scenario

Main Problems in the Sector• Subsidized power and low productivity

• Leakages in Power sector and theft

• Average transmission, distribution and consumer-level losses exceeding 30%

• Shortages of fuel

• Poor grid infrastructure

• Customer awareness towards power efficiency

• Energy deficit of 8.5% - 9.8% in 2010-11. Expected that the energy deficit to 10-13% resp. in 2011-12

• Average per capita consumption of electricity in India is only 478 kWh while the World average is 2,300 kWh

Obstacles to Progress• Industrial Sickness

• Lack of Infrastructure

• Improper Location Base

• Lack of Capital

• Shortage of Industrial Raw Material

• High cost of production and low quality products

• License Policy

• Outdated equipment's

• Low level of generation

• Transmission network -losses approximately 33 %

INVESTMENT IN TRANSMISSION LINES

Sr. No.

Name of the Transmission line

Length (CKM)

GoI / BoD

Appl.

Cost (Appd.)/

Ant.

Expenses Cumml Exp.

Completion Target

B.E. (12-13)

upto (Mar'12)

Ant./ Act.

1Supplementary Transmission System Associated with DVC & Maithon Right Bank Project

3000 Aug'08 2360.95 53.40 1916.4 Dec'12

2 North East/Northern Western Interconnector -I Proj. 5066 Feb'09 11130.1

9 1100.4 4502.5 Sep'14

3 Transmission System Associated with Mundra Ultra Mega Power Project. 3695 Oct'08 4824.12 641.90 2687.70 Sep'13

4 Western Region Strengthening Scheme - II (Balance) 741 Jul'06 5221.23 22.60 3123.6 Dec'12

5 Transmission System Associated with Mundra Ultra Mega Power Project. 29635 Oct'08 4824.12 641.90 2687.70 Sep'13

6Transmission System for Development of Pooling Station in Northern region Part of West Bengal and Transfer of Power from BHUTAN to NR/WR.

29635 Apr'10 4404.57 214.10 254.5 Jan'15

Sl.No Name of the Sub -StationMVA Ratio

GoI / BoD Approval

Completed Target.

Anticipated/ Actual

1Common Scheme for 765KV Pooling Station and Network Associated with DVC & Maithon RB Project etc and Inport by NR & WR via ER

22500 Aug'08 Mar'13

2 North East / Northern Western Interconnector -I Project 1135 Feb'09 Sep'14

3 Transmission System of Vindhyachal-IV and Rihand -III (1000MW each) Gen. Proj. 6000 Mar'10 Mar'13

Other major project by private companies

• 4000 MW power(440KV line) from country's eastern grid to western region by the Reliance Infrastructure Limited (R-Infra), between Solapur and Kolhapur in Maharashtra.

• The 220 km long transmission line (Western Regional System Strengthening (WRSS)).

Power Transfer Capacity (MW)

Haryana Vidyut Prasaran Nigam Limited (HVPNL)

Mahatransco

GETCO, DGVCL

MP Transco Ltd

AP Transco

UPPTCL

WBSETCL

KPTCL

Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN)

Major Players

• Central Transmission Utility - Maharatna PSU.• World's Leading Power Transmission Utility.• The 11th five year plan investment of Rs. 55000 Crores • Interregional power transfer capacity to be increased to 37,700

MW by 2012 under Phase-III of National Grid Programme.• Plans to Increase total Transmission lines by over 45% between

FY’08-12 (by adding 29,907cKm).• Carries about 50% of Generated Power Across Country with

Transmission System as on 31 August 2012, comprising– 95,846 Ckt. kms Transmission line.– 157 EHVAC/HVDC Substations.– 1,44,303 MVA Transformation Capacity.– 28,000 MW(Approx) Inter-regional Power Transfer Capacity.

Power Grid

Companies Maha Transco KPTCL GETCO MP Transco

New Substations in 2012

71 42 140 107

5 Year Capex 10456 8921 14681 12321

New Projects • Gangapur• Nigade• Chakan • Bhusawal • Vasai

• Hubli• Mysore• Bangalore- rural

• Vadodara• Kheda• Mehsana• Kalavad

• Vidisha• Bina• Sendhwa

State Transmission Investment

Private Sector Initiatives

• 18,177 MW is expected to be added by IPPs/MPPs being developed by Private Sector during the 11th plan.

• Private developers like ESSAR,JAYPEE & Adani are setting up interstate transmission lines by directly inviting bids.

11th & 12th Plan - Transmission Lines Targets

Ratings Unit 11th Plan 12th Plan

765 Kv cKm 5428 8000

500HVDC cKm 5206 4500

400KV cKm 49278 51000

220KV cKm 35371 50000

Total cKm 95283 113500

1200 KV UHVAC Super Grid Planned in 12th Plan

Policies

Low Per-Capita Consumption (Encouraging policy measures)

The Electricity Act, 2003 Removed the need for

license for generation projects.

encouraged competition through international competitive bidding

Identified transmission as a separate activity

invited a wider public and private sector participation among other things

Other Reforms Unbundling of SEBs Tax benefits, Accelerated Power

Development and Reform Program (APDRP)

for distribution, Permission for trading of

power, etc.

The National Tariff Policy was notified in 2005, which mandated that, “All future procurement of power by the distribution utilities and all future investments in inter-state power transmission would be through competitive bidding route from January, 2011.”

Introduction of Electricity Act 2003 for:Competitionprivate sector involvement focus on green

Sources of fund• Asian Development Bank (ADB)• World Bank

– International Finance Corporation (IFC)– International Bank for Reconstruction & Development (IBRD)– Multilateral Investment Guarantee Agency (MIGA)

• India Infrastructure Finance Corporation Ltd. (IIFCL)• Power Finance Corporation

– Consortium Lending Group– Business Development Associates– Equity financing

• Commercial Banks• Private Equity funds• Private Investor• Domestic Bond market• Domestic term lending institutes

Fund Requirement for 11th & 12th Plan• Total Fund requirement at the beginning of XI plan - Rs 1,40,000 Crore

– Central Sector - Rs 75,000 Crore– State Sector- Rs 65,000 Crore

• Total utilization during XI Plan is anticipated to be - Rs. 1,22,800 Crore.• 242 Cr of investments came from the private sector which were not a part of earlier

planning.

• For 12th Plan, total fund requirement for development of transmission system is estimated to be - Rs 1,80,000 crore – Central Sector - Rs 1,00,000 Cr – State Sector - Rs. 55,000 Cr – Private Sector - Rs. 25,000 Cr

Column1 2007-08 2008-09 2009-10 2010-11 2011-12 TotalCentre 6,772 8,282 10,872 13,167 17,277 56,370State 7,773 9,459 10,823 16,908 21,416 66,379

Total 14,616 17,912 21,695 30,075 38,693 1,22,991

Returns and Benefit Analysis

2012 2011 2010 2009 20080.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Kalpataru

PowerGrid

KPTCL

WBPTC

2012 2011 2010 2009 20080.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Kalpataru

PowerGrid

WBPTC

KPTCL

Kalpata

ru

PowerGrid

Mah

atran

scoKPTC

L

WBPTC

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2012

2011

2010

2009

2008

(in crore)Capex 2012 2011 2010 2009 2008Kalpataru NA NA NA NA NAPowerGrid 17814 12005 10617 8167 6656Mahatransco 2638 3100 2363 1241 1114KPTCL NA 1094.6 1315 1809 1913WBPTC 26571 500 22625 42438 42571

ROE

Net Profit CapEX

ROCE

Conclusion & Recommendations• Identification of high power density Corridors

• Smart Grids activation across country• Recommended use of Optical Fiber transmission and lesser physical structure• Grants for setting up transmission system for evacuation of power from renewable energy

source. • It is proposed that viability gap funding may be provided on case to case basis for building

intra-State transmission system for renewable generation and conventional hydro stations.• Land occupied by the transmission tower would have zero resale value, therefore,

compensation should be the full value at prevailing market rate.• To reduce the requirement of land for constructing substation use of Gas Insulated

Substations (GIS) which requires about 30 % land compared to conventional substation is being increasingly adopted in metro, hilly and other urban areas.

• 12th Five Year Plan:

(i) 1,09,000 circuit kilometers(ckm) of transmission lines,

(ii) 2,70,000 MVA of AC transformation capacity

(iii) 3,000 MW of HVDC systems are estimated to be added.

Thank You!!!!!!!