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Rs 400 bn projects to tackle peak power shortage in India

Unveiling some future plans for the power sector, Union Power Minister P R Kumaramangalam has said that steps are being taken to privatise the transmission system while the peak power shortage will be dealt with through pumping in an investment of Rs 400 billion.

The terms and conditions for private sector participation will be announced soon, Kumaramangalam said at the 10th year of establishment of Power Grid Corporation of India Limited.

The bill on allowing private participation has already been passed by Parliament. Those state electricity boards that are not financially viable will be privatised first.

In his second consecutive stint as the power minister, Kumaramangalam said the country's 11,000 mega-watt peak power shortage amounting to 12 per cent will be brought down by five per cent.

The peak power shortage (when the load is the highest) was 18 per cent early last year but has come down to 12 per cent. ''Efforts are on to raise Rs 400 billion,'' the minister said.

Other plans include increasing transmission capacity to 75,000 MW by 2012 through Powergrid's state-of-the-art technology where power will be available on demand.

Power Grid had been paying a dividend of Rs 1 billion each year. But this year Rs 500 million were paid since the corporation is engaged in establishing a national grid. The new grid would take care of the surplus areas especially in the east which has a 2000 MW surplus and only 1000 MW is evacuated.

The minister spoke of the Emergency Restoration System of Power Grid which errected fallen power poles during the storm within two days saving in the process Rs 700 million in Gujarat.

The total dues from state electricity boards to the power utilities exceed over Rs 210 billion and the government would soon come out with a detailed mechanism to securitise them through issuing bonds.

Kumaramangalam said the Taj trapezium area which constitutes seven districts around Agra will be privatised soon to avoid the detriorating electricity supply problem. Uttar Pradesh power minister Naresh Aggrawal had accepted the Centre's proposal, but a decision is still awaited. ''If implemented within three years, there would be no power shortage in the region,'' the minister said.

He said after the Supreme Court order, the central government sanctioned Rs 3 billion to implement various schemes relating to Taj trapezium to the Planning Commission. Rupees 1.11 billion have already been released for ten related projects.

India being centrally placed in the South Asian region, sharing political boundaries with four SAARC countries can play a key role in facilitating interconnection between these countries leading to formation of SAARC Grid.

Power Grid's chairman and managing director R P Singh said that the corporation is playing a catalytic role in development of SAARC Grid for exchange of power and harnessing the potential of resources beyond the national boundary.

The major transmission links envisage interconnecting five SAARC countries: namely India, Bhutan, Pakistan, Nepal and Bangladesh which would finally lead to the formation of the SAARC Grid.

Interconnection of India and Bangladesh is on the anvil as the proposal is under active consideration for interconnection at 220 kv level for initial exchange of power of 150 MW.

Power Grid is examining the feasibility of extending the boundaries of SAARC Grid to be extended further to connect to other neighbouring countries like Myanmar, Thailand, Malaysia and Kazakhstan.

UNI

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