4. PROBLEM : Power Demand Constraints
Installed Capacity : 2,06,456 MW
Grid Demand : 1,25,000 MW
Suppressed Demand in the form of
Huge piling of the New connection pendency (other than private utilities)
More than 30% of the 2 Crs pumpset run on DG Sets
Majority of the un-electrified railway corridors (other than main trunk lines)
Unavailability of efficient Public transport system : Metro, Monorail etc.
HUGE Suppressed & Unaddressed Demand
4 BSES Yamuna Power Ltd.
5. India Vs China [ Yr 1991 to Yr 2012]
CHINA INDIA
YEAR 1991
Installed Capacity : 1,50,000 MW Installed Capacity : 66,000 MW
Grid Demand : 1,25,000 MW Grid Demand : 57,000 MW
Demand Growth
: 5 TIMES Demand
DOUBLED
YEAR 2012
Installed Capacity : 950,000 MW Installed Capacity : 2,06,456 MW
Grid Demand : 7,40,000 MW Grid Demand : 1,25,000 MW
Economic
Development
* Data Source : www.wikipedia.org & other reports
5 BSES Yamuna Power Ltd.
7. GENERATION : accelerated growth
Sou rce : CEA
Installed capacity as on Jul’12 : 2,06,456 MW
YEAR 1991-92: Liberalization Policy by Govt. of India
New Policy Framework to foster Accelerated Growth in Power.
Private / FDI participation for the Generation Sector
7 BSES Yamuna Power Ltd.
8. GENERATION Reforms : Enablers
ADMINISTRATIVE FRAMEWORK
Statutory clearances sized up & streamlined.
Investment Promotion Cell in MoP.
Time bound clearances
LEGAL FRAMEWORK
Standardization of Indian Arbitration & Conciliation 1991: Installed Capacity: 66,00 MW
Act, 1996 in line with UNCITRAL, 1976
Ease in Foreign Direct Investments
FINANCE FRAMEWORK
Concept of SPV / JV / Project based Financing
Assured Return on Equity
Cost reflective Two Part Tariff
Incentives - tax holiday, duties & taxes waivers
2012: Installed capacity: 2,06,456 MW
OBJECTIVE : Impetus to the Power GENERATION
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9. GENERATION : Global Ranking
205
India to Rank No 3 by 2017
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10. Over Rs
11,00,000 Crs
12TH FIVE YEAR PLAN [ 2012-2017 ]
~88,000 MW
addition Sector 8th plan 9th Plan 10th Plan 11th Plan 12th Plan
Generation Central 50% 24% 57% 34% 28%
State 42% 50% 30% 34% 15%
Private 8% 26% 13% 32% 57%
TOTAL 100% 100% 100% 100% 100%
Over 4,50,000 Crs of Investment
Transmission
1,36,000 CKm of Transmission Lines
2,95,000 MVA of Transformation Capacity
Over 2,50,000 Crs of Investment
Distribution Cater to additional demand for : 88,000 MW
2.1 times the generation capacity ; Cost: 2.3 Crs / MW
Over 4,30,000 Crs of Investment
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12. DISTRIBUTION Sector : Status
Distribution Reform Area Segregation
*Including Delhi
Major Private Player engaged as Distribution Licensee
Kolkata, Mumbai, Delhi, Ahmedabad, Surat, Greater Noida, Orissa (3/4th of the state)
Major Private Player engaged as Distribution Franchisee
Agra, Bhiwandi, Kanpur, Nagpur, Aurangabad, Gwalior, Sagar etc.
Private Sector Participation a meager 4%
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13. Distribution Losses @ All India Level [FY09]
National
Average
The average AT&C losses (%) National Level for FY 09 : 28.44% (Source : PFC report)
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14. Distribution Challenges
Finance Technology Man Power
Strategy Innovation
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15. Finance
Rs. 2.3 Cr is needed to create 1MW
Distribution infrastructure
For 1,08,000 MW ( 12th Plan Demand + Existing Gap of 10%),
sector requires Rs. 5,20,000 Crores
Debt: Rs. 3,65,000 Crs. (70%) ; Equity: Rs.
1,55,000 Crs. (30%)
15 BSES Yamuna Power Ltd.
17. Finance
Dedicated Common Distribution Infrastructure
Fund to be floated by government
Funds to be made available at attractive rates
to Discoms
Easy access to funds like JNURM, R-APDRP,
RGGVY etc
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19. Man Power
Requirement Skill
Requirement for 12th plan Requirement
• 5 person /MW • For 88,000 • 70% skilled
for urban areas MW ( Taking 7
persons per MW)
• 4,30,000
• 10-15 persons skilled
per MW for • 6,16,000 persons
rural areas persons
needed
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20. Man Power
Training &
Skill Set
Development
Knowledge
Distribution Specific
Attitude
Special courses at ITIs, Values/Culture
NPTI, IITs and IIMs
People interaction
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21. Strategy
Raising the per capita Open & flexible
consumption of power Energy Markets
Reduction of AT&C losses Improving supply
& Cost of supply Quality & Reliability
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22. Innovation
Research and Development
Dedicated centers Separate Fund Arrangement
Advanced Research
Remote metering Automation (SCADA etc.)
People less customer care Safety
Money less transaction O&M practices
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24. Comparison : Gen-Trans-Dist
Parameter Generation Transmission Distribution
Cost reflective Tariffs
with timely revisions
Tax Holidays ;
Excise / Import Duties waivers
Based on Based on Based on
Project Financing
PPAs BPAs Balance Sheets
Transparency of cost/expenditure
in tariff petition
Reduce Disparity Across the Power Chain
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25. Supporting Framework
ADMINISTRATIVE FRAMEWORK
All statutory support to the discoms for schemes like RAPDRP etc
State government assistance for facilitating discoms network infrastructure
REGULATORY FRAMEWORK LEGAL FRAMEWORK
Realistic approach towards Discom Endorsement of the Electricity Act -2003
Time bound discom cost amortization Theft / misuse of electricity
Cost reflective tariffs & support schemes Mitigation of regulatory challenges
Discom standards of performance
FINANCE FRAMEWORK
Concept of SPV / JV/ Project based Financing
Assured Return on Equity
Low cost debt instruments for overall sectoral growth
Incentives in terms of tax holiday, duties & taxes
OBJECTIVE : Provide much needed Impetus to the Power DISTRIBUTION
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BSES Yamuna Power Ltd.
26. Approach towards Accelerated Distribution Reforms
Lender-Discom Partnership (LDP) Model
Best Performing REC / PFC / other
Utilities (BPU) financial institutions SPV
Indulge itself with HIGH OUTSTANDING DISCOMS
Discoms to FRANCHISE certain cities to SPV for loss reduction & reforms.
The EXISTING DEBT to be converted to EQUITY portion for that franchise
BPUs to bring in technical & business efficiencies for the franchisee
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27. Approach towards Accelerated Distribution Reforms
WIRE – CONTENT MODEL
WIRE Business (EPC)
Centralized Monitoring (Inline with generation addition)
Centralized empanelment for EPC contractor (for discom network creation)
New n/w created to be leased to the state discom by the Central agency.
State Discom to pay Fixed Cost / Lease rental to the centralized agency
CONTENT Business (State Discom)
Power procurement / management
Operations & Maintenance of the WIRE business
Much needed impetus to the Network Creation
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