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Tuesday, 07 Jun 2016
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Power sector lighting up

The Government of India is targeting 24x7 power supply for all by 2020. The aim is to not only make power available even in remote villages but also at affordable rates. The Power sector witnessed an addition of 23,976 MW of conventional power capacity, an increase of 28,114 CKM in transmission lines, and electrification of 7,108 villages in FY16.




More and more state governments have been persuaded to adopt Ujwal DISCOM Assurance Yojana (UDAY) in order to reduce DISCOM losses and bring down the cost of power. The government is also encouraging clean energy generation.


The mid of May 2016 saw a number of government initiatives towards liberalising and promoting the power sector, and boosting its ‘Make in India’ campaign.
  1. The Union Cabinet granted approval to the MOU between India and Japan for promoting sustainable, stable and low carbon thermal power development in India and addressing issues and barriers that have been identified through the preceding Pre-Primary Study and the on-going cooperation towards Energy Efficient Renovation & Modernization, as well as new power development.

  2. The power ministry has proposed to set up an independent entity to own, manage and regulate all major power transmission lines in India. PowerGrid Corporation, which hitherto played this role, will henceforth focus on transmission lines development. The change in the policy has been mooted to attract more private investment into the power transmission sector.

  3. The government wants to fix the stressed areas of the hydro power industry and a scheme for providing long term funds to revive stalled hydro power projects is being worked out.

  4. The Central Electricity Authority (CEA) has recommended that government-funded power projects use locally made equipment and materials procured through domestic competitive bidding. As per its recommendations, all projects funded by Power Finance Corporation and Rural Electrification Corporation, including Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), Restructured-Accelerated Power Development & Reforms Programme (R-APDRP), and Integrated Power Development Scheme, would have to procure equipment and material locally.


Project Developments


BHEL has commissioned the first 800 MW supercritical thermal unit in Raichur, Karnataka. The unit has been commissioned at the Yeramarus Thermal Power Station. The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly.


Power Grid Corp has operationalised its ultra-high voltage 1,200 kV National Test Station (NTS) at Bina in Madhya Pradesh. The NTS is a research and development project which will be monitored for two years, and after that the Central Electricity Authority will take a call on replicating this technology in various parts of the country.


Sovereign wealth fund (SWF) Abu Dhabi Investment Authority (ADIA) is in advanced negotiations with Hyderabad headquartered Greenko Group, which operates in wind, hydro, biomass and natural gas power projects, to invest between USD 170 million - USD 200 million for a minority stake.

Quote of the week:

"We are focusing on new areas of power demand, huge thrust on energy efficiency, wind power and hydro"

- Piyush Goyal, Minister of State for Power, Coal, New & Renewable Energy
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