Positive Impacts of Demonetisation: Power, Coal and Mines sectors saw impressive growth in Nov post currency-ban

Impact of De-monetisation On Power Generation 

Power generation growth in November on y-o-y basis was 8.53% as against October when it was 1.27%. As against Electricity Generation of 85.904 billion units in Nov 2015, Nov 2016 witnessed a figure of 93.235 –a growth of 8.53%. However, a month before de-monetisation, the growth in electricity generation in October 2016 stood at 99.709 BU or just a 1.27% increase y-o-y as in October 2015 electricity generation was 98.459 BU.

Electricity Generation (BU) 2015 2016  Growth
November 85.904 93.235 8.53%
October 98.459 99.709 1.27%

*November figures are provisional

Impact of De-monetisation On Coal production : Coal Production has been better in November than October. State owned, Coal India Ltd saw a 5.5% y-o-y growth in November 2016 as compared to -2% in October.

Coal Production of CIL in Nov 2016 stood at 50 MTE as against 47.4 MTE in Nov 2015. In Oct 2015, as against 44.4 MTE, coal production fell by 2.03% during Oct 2016. Thus de-monetisation helped take up coal production by 5.49%.

Coal Production (CIL) (MTE) 2015 2016 Growth
November 47.4 50 5.49%
October 44.4 43.5 -2.03%

Impact of Demonetisation On Metals and Mines: The mines and metals sector was no exception.

Aluminium: As compared to October, y-o-y growth in November of production of Aluminium metal from NALCO was 3.34%. Growth witnessed in production by NALCO of Aluminium Metal was 32164 MT in Nov 2016 as against 31123 MT. During the same period in 2015. before demonetisation, this growth was a mere 0.33% in October 2016 when Nalco’s Aluminium production was 32,495 MT as against 32,389 MT production during Oct 2015.

NALCO Aluminium Metal (MT) 2016 2015 Growth
November 32,164 31,123 3.34%
October 32,495 32,389 0.33%

Copper: As compared to October, y-o-y growth in November of production of Copper cathodes was 10.35%.  Production of Copper Cathode stood at 68607 MT in Nov 2016 as against 62174 MT during Nov 2015. Before de-monetisation, the month of October 2016 witnessed a negative growth of 1.14% at 56637 MT as against 57288 MT witnessed during Oct 2015.

Copper Cathode (MT) 2015 2016
November 62174 68607 10.35%
October 57288 56637 -1.14%

Lead : Even Lead production by HZL increased 30.36% in November on y-o-y basis as compared to -14% in October. HZL Lead production showed an remarkable increase at 13890 MT during Nov 2016 when compared to 10655 MT in Nov 2015.

Before de-monetisation, the growth was down at 11518 MT 14.04% in October 2016 as against 13400 MT in Oct 2015.

HZL (Lead) (MT) 2015 2016
November 10655 13890 30.36%
October 13400 11518 -14.04%

Impact of Demonetisation On DISCOM Arrears :

In addition to increase in production, there has been a substantial increase in collection of arrears by the state DISCOMs.

  • Distribution Companies collections increased by more than Rs. 3,000 crore from 10th November to 15th December 2016 compared to last year.  The increase in collections is a clear indication of achieving affordable tariffs.
  • For instance, the North Bihar Power Distribution Company saw a 204% increase, NESCO in Odisha saw a 251% increase, APDCL in Assam saw a 97% increase, TANGEDCO in Tamil Nadu saw a 97% increase.

From being power deficit to becoming power surplus, India’s power sector has achieved some major milestones in 2016.

India is moving fast on the power capacity generation front and from a power deficit nation, it is presently a power surplus region. Just a day back on December 26, state-owned NTPC Ltd inked an agreement to import 160 mw to India’s strategic neighbour Nepal.

With 2016 coming to an end, the Modi government has completed its half term. India’s power sector is moving well on the Government’s promise to provide 24×7 power across the country by 2019.

Amidst power surpluses, major initiatives by the government have seen the power tariffs dropping substantially and any state can freely purchase power to tide away shortages through the Vidyut Pravah Mobile App. At any given time of the day, anywhere between 1500-3000 mw is available to be bought by the states at a cost ranging between Rs 1.5 to 3 a unit.

Power Availability Position in India

Increase in electricity generation from 967 BU in 2013-14 to 1048 BU in 2014-15 and 1107 BU in 2015-16 resulting in lowest ever energy deficit of 2.1% in 2015-16, which has further lowered to 0.7% (April-Oct, 2016) from 2.1% (2015-16). The National Peak Power Deficit is down to half at 1.6% in the same period as compared to 2015-16.

Power Generation

During the 12th Plan period (2012-17), a capacity addition of about 88928.2 MW against the target of 88537 MW from conventional sources have been achieved till 31st October, 2016 and about 21,128 MW against the target of 30000 MW from renewable sources have been achieved till 30thSeptember, 2016.

Due to large generation capacity addition, the electricity energy shortage in the country has reduced to 0.7% during the current year 2016-17 (up to October, 2016) from 8.7% during the year 2012-13. Adequate supply of the domestic coal to power plants has been ensured. The growth of domestic coal supply to power plants has been around 6.2% during 2015-16.

Power Generation during 2016-17 (April-November, 2016) is 777.506 Billion Units, showing a growth rate of 4.99% over the same period in previous year. Coal based power generation during the current year is 595.124 BU, showing a growth rate of 5.92% over the same period in the previous year.

Till September, 2016, a total of 3000 MW of inefficient thermal generating capacity has been retired. Measures initiated for reducing the generation cost of coal based power projects: Increasing supply of domestic coal; Coal usage flexibility; Rationalisation of coal linkages.

During the year 2016-17, 29 thermal stations, having total installed capacity of 13440.5 MW, are likely to be commissioned, out of which 9 projects with installed capacity of 3608.5 MW have already been commissioned till 31.10.2016. In-principle has been clearance given to replace 11000 MW Thermal Power Plants, older than 25 years, with Energy Efficient Super Critical Plants in about five years, with an investment of around Rs. 50,000 crores.

In Hydro power sector, 13 hydro stations, having total installed capacity of 1949 MW, are likely to be commissioned, out of which 5 projects with installed capacity of 320 MW have already been commissioned till 31.10.2016Detailed Project Reports (DPRs) of 12 Hydroelectric Projects, with an aggregate installed capacity of 7,165 MW are under examination in CEAThe total power generated by hydro power projects in the country from 1st April, 2016 to 31st October, 2016 is 88306.78 MU (excluding power imported from Bhutan which is 4908.67 MU).

Transmission

During the 12th Plan period (2012-17), 1,00,468 ckm against the target of 1,07,440 ckm of transmission lines and 2,88,458 MVA against the target of 2,82,750 MVA of transformation capacity have been completed till 31st October, 2016.

“24×7 Power for All”: State specific Plans for 34 States/UTs under implementation;
National Energy Shortage reduces to 0.7%; 3.5% in North East
National Peak Power Deficit halved at 1.6%; 0.5% in North East
Free Electricity Connections to 2.5 crore (62%) BPL households released

Several landmark decisions have already been taken in thermal power generation, hydel and more importantly in solar, wind and other green energy, besides strengthening of transmission and distribution, separation of feeder and metering of power to consumers.  These also include not only achievements in capacity addition but also important reforms being undertaken on increasing energy efficiency of the present infrastructure and thereby reducing power losses.

The government has launched a scheme by providing support from Power System Development Fund (PSDF) for operationalization of stranded gas based generation. The outlay for the support from PSDF has been fixed at Rs. 3500 crores and Rs. 4000 crores for FY 2015-16 and FY 2016-17 respectively. 

Power Situation of North East Regions

As per information given by States / UTs to Central Electricity Authority (CEA), during the current year 2016-17 (April, 2016 to Oct., 2016), the peak power shortage in North Eastern Region (NER) has reduced to 0.5% from 8.4% during the corresponding period last year. Similarly, the energy shortage during current year has reduced to 3.5% from 6.9% during the corresponding period last year.

Six thermal power units/modules aggregating to 1103.1 MW have been commissioned during the 12th Plan period in the North-Eastern States. Further, five thermal units/modules aggregating to 625.5 MW are presently under construction in the North-Eastern States for benefits during 12th Plan period and beyond.

Under the ‘24×7 Power for All’ initiative, State specific Plans for 34 out of 36 States/UTs, have already been prepared and are under implementation. In these documents, an assessment of energy required to provide ‘24×7 Power for All’ for connected and unconnected consumers, adequacy of power to the State from various generating sources, inter-state transmission system, intra-state transmission system and distribution to ensure 24X7 power supply has been made. The concurrence for the signing ‘24×7 Power for All’ documents for 2 States viz., Tamil Nadu and Uttar Pradesh is awaited.

Detailed Progress under Specific Schemes Of the MoP is given as under:

Rural Electrification

Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

Under DDUGJY, projects with total cost of Rs. 42392.46 Crore for 29 States/UTs have been sanctioned.

Status of implementation of RE Component

Cumulatively (as on 30.11.2016), electrification works in 1,16,680 (96%) un-electrified villages, intensive electrification in 3,99,829 (67%) villages has been completed. Under DDUGJY, Government of India is providing free electricity connections to Below Poverty Line (BPL) households. Out of total 4.27 crore connections sanctioned, free electricity connections to 2.5 crore BPL households have been provided as on 31.10.2016 under the scheme.

Penalty is imposed by the respective implementing agencies on the contractors, if the delay is attributable to the contractors as per extant rules. Multilevel monitoring mechanism has been developed at Central and State level.

Remote Village Electrification Programme (RVEP)

Government has implemented RVEP under the Ministry of New & Renewable Energy (MNRE) in various States to provide basic lighting through Renewable Energy Sources in un-electrified villages and hamlets of electrified census villages. MNRE has covered 9006 villages and 2329 hamlets under RVEP so far.

Integrated Power Development Scheme (IPDS)

A scheme to provide quality and reliable 24×7 power supply in the urban area. A total of 4041 towns have been found eligible under IPDS across the States, as on 24.11.16. The scheme provides to complete the projects within a period of 24 months from the date of issue of Letter of Award. The IT and technical intervention will help in improvement in billing and collection efficiency which will ultimately result in reduction in Aggregate Technical and Commercial (AT&C) losses. So far, 20 out of 21 Data Centres have been commissioned and 1246 towns have been declared ‘Go-Live’. All India Short Code 1912’ for Consumer Connect adopted in 44/51 Discoms in India.

Energy Efficiency Schemes

A number of initiatives have been taken up by the Government to ensure promotion of energy efficiency in the country like Standards & Labelling programme for appliances by the Bureau of Energy Efficiency (BEE), Perform Achieve and Trade (PAT) Scheme, Energy Conservation Building Codes (ECBC), Unnat Jyoti by Affordable LEDs for All (UJALA) & Street Lighting National Programme (SLNP), Promotion of Energy Efficient Fans and Agriculture pump sets, among others.

National LED Programme

Prime Minister Shri Narendra Modi launched the National LED Programme in 100 cities, on 5th March, 2015. This programme has two components viz., Domestic Efficient Lighting Programme (DELP) and Street Lighting National Programme (SLNP).

Domestic Efficient Lighting Programme (DELP)

The Unnat Jyoti by affordable LEDs for All (UJALA) scheme was launched to provide LED bulbs to domestic consumers aiming to replace 77 crore incandescent bulbs with LED bulbs. The e-procurement of LED bulbs through a transparent and competitive bidding process under UJALA has resulted in reduction of approximately 88% in procurement prices of LED bulbs from Rs.310 in February, 2014 to Rs.38 in August 2016, the retail price being reduced from Rs.550 to Rs.65, which is passed on to the consumers. A total of 5.96 crore of dwelling units have been provided LED bulbs under the UJALA scheme, as on 20.11.16. The Street Lighting National Programme (SLNP) aims to replace 3.5 crore conventional street light with smart and energy efficient LED street lights by March, 2019.

Progress of National LED Programme as on 23.12.2016 is given below: –  

Parameters Domestic Efficient Lighting Programme (DELP)

 

Street Lighting National Programme (SLNP)
Total number of bulbs/street lights replaced 18.68 crores 15.01 lakhs
Avoided Peak Demand 4,858 MW 49.56 MW
Energy saved 24.26 billion kWh/year 5,45,208 kWh/day
Reduction in carbon footprint 19.65 million tonnes CO2/ year 452.52 tonnes CO2/day

Energy Efficiency Services Limited (EESL) has issued Secured, Redeemable, Taxable, Non-Cumulative, Non-Convertible Bonds in the nature of Debentures in dematerialized form of Rs. 500 Crores in the month of September, 2016 for the purpose of financing the various energy efficiency projects, which was fully subscribed. These Bonds are listed with Bombay Stock Exchange.

During the course of PAT Cycle – II, 621 units have been assigned specific energy consumption (SEC) reduction targets covering 11 sectors with projected savings of 8.869 MTOE. In the PAT – II cycle three more sectors have been included namely Railways, DISCOMs and Refineries.

Scheme of Utilization of Gas based power generation capacity

The government has sanctioned a scheme for importing spot Re-gasified Liquefied Natural Gas (RLNG) in 2015-16 and 2016-17 for the stranded gas based power plants as well as for plants receiving domestic gas up to the target Plant Load Factor (PLF) selected through a Reverse e-bidding process. The scheme provides for financial support from PSDF (Power System Development Fund). The outlay for the support from PSDF has been fixed at Rs. 7500 crores (Rs. 3500 crores and Rs. 4,000 crores for the year 2015-16 and 2016-17 respectively).

Foreign Direct Investment

The existing (FDI) policy notified in June 2016 by DIPP for FDI in Power Sector provides for 100% FDI under automatic route for projects of power generation (except atomic energy), transmission, distribution and trading. Government of India has also allowed the FDI up to 49% in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010, under the automatic route, subject to certain conditions, as laid down in the policy.

Power Transmission

National Grid

Target of one nation-one grid-one frequency-one market-one price has been achieved through reforms, unbundling of the utilities, improved inter-state transmission capability, corresponding increase in generation capacity etc. On 29th December, 2015, a single pan-India price at Rs. 2.30 per unit for power was discovered in the power exchange platform. 50,215 ckm transmission lines and 1,28,403 MVA sub-station capacity added during 2014-16.

Available Transfer Capacity of Southern Grid has increased to 5900 MW (i.e. by 71% in 2014-16) due to addition of a number of transmission lines. The ATC would be further enhanced by 625 MW by December 2016 with the commissioning of 765 MW at Angul-Srikakulum-Vimagiri line.

On 21st December, 2016 Shri Piyush Goyal released reports on ‘Renewable Energy Integration: Transmission an Enabler’, ‘Green Energy Corridor II’ and ‘Electricity Demand Pattern Analysis’. PGCIL has prepared the first two reports that cover aspects of comprehensive transmission plan to integrate renewable energy sources into the National Grid and role of Transmission as an Enabler in growing Renewable Energy (RE) penetration scenario.

Power Distribution

Ujwal DISCOM Assurance Yojana (UDAY)

Ujwal DISCOM Assurance Yojana (UDAY), a scheme for financial and operational turnaround of Power Distribution Companies was formulated and launched by the Government on 20th November, 2015 in consultation with the various stakeholders. The scheme aims to provide permanent solution to legacy debts of approximately Rs.4.3 lakh crores and address potential future losses.

As on 08.12.2016, 17 States of Jharkhand, Chhattisgarh, Rajasthan, Uttar Pradesh, Gujarat, Bihar, Punjab, Jammu & Kashmir, Haryana, Uttarakhand, Goa, Karnataka, Andhra Pradesh, Manipur, Madhya Pradesh, Maharashtra, Himachal Pradesh and the Union Territory of Puducherry have signed Memorandum of Understanding under UDAY. The Government of Telangana has not signed a MoU under UDAY so far.

In order to facilitate such States that want to join but could not join UDAY, the Government of India has now decided to extend the timeline to such States up to 31.03.2017. So far, Governments of Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Jammu & Kashmir and Andhra Pradesh have issued Bonds to the tune of Rs. 1,82,204.29 crore including Bonds issued by Rajasthan DISCOMs worth Rs. 12,368.00 crores and by UP DISCOMs worth Rs. 10,714 crores.

A Multi-Level Monitoring mechanism for Ujwal DISCOM Assurance Yojana (UDAY) has been put in place to ensure a close monitoring of performance of the participating States under UDAY. Also a web portal (www.uday.gov.in) has been created for monitoring purpose. The last meeting of the Monitoring Committee was held on 03-11-2016.

Smart Grid Mission

National Smart Grid Mission (NSGM) was launched on 27th March 2015. Funds allocated for NSGM were Rs.40 Crore & Rs.30 Crore for the years 2015-16 and 2016-17 respectively. Smart Grid Projects at Chandigarh for Rs. 28.58 crores, at Amravati (Maharashtra) for Rs. 90.05 crores, at Congress Nagar (Nagpur) for Rs. 139.15 crores and at Kanpur for Rs. 319.57 crores have been sanctioned under NSGM. The National Smart Grid Mission Project Management Unit (NPMU) is handholding States for speeding up development of Smart Grid Network in the country.

Reforms

Amendments in Tariff Policy

The Union Cabinet approved proposal for amendments in the Tariff Policy on 20.1.2016. Resolution issued on 28.1.2016. It will provide the motivation to harness the hydro as well as renewable capacity for energy security of the country.

Main amendments are as under:

  • Promotion of Renewable Generation Obligation (RGO).
  • Compulsory procurement by Discoms from waste-to-energy plants.
  • Thermal Power Plants within 50kms of sewage treatment facilities to use treated sewage water.
  • Hydro projects continued to be exempted from competitive bidding upto 15th August 2022.
  • Use of Smart meters in a phased manner to enable ‘Time of Day’ metering.
  • Inter-State and Intra-State transmission lines only through competitive bidding.
  • Procurement of power from coal washery reject based plants of PSUs or their JVs on regulated tariff.
  • Expansion of capacity of IPPs (on regulated tariff) from 50% to 100% of existing capacity.
  • Compulsory purchase of power from micro grids at regulated tariff.

Mobile applications and websites launched to ensure accountability and transparency

  • Grameen Vidyutikaran (GARV) app to help citizens track rural electrification under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) (http://garv.gov.in/)
  • GARV – II App, launched on 20th December 2016, hosts the data in respect of about 6 lakh villages, with more than 15 lakh habitations having 17 crore people, that has been mapped for tracking progress on household electrification in each of the habitations of these villages.
  • VIDYUT PRAVAH app created to provide real time information of electricity price and availability (http://www.vidyutpravah.in/)
  • Unnat Jyoti by Affordable LEDs for All (UJALA) app to keep track of LED distribution under the Domestic Efficient Lighting Programme (DELP) (http://delp.in/)
  • URJA (Urban Jyoti Abhiyaan) MobileApp – the Consumer Dashboard of the URJA App, launched on 16.06.16, provides for Urban Power Distribution Sector to enhance Consumer Connect, Project Monitoring of Urban Distribution Sector projects and providing information on the monthly performance on parameters like Consumer complaints redressal, Release of New service connection, Average number of interruptions faced by consumer, Number of consumers making e-payments, Energy lost / power theft i.e. AT&C loss.
  • E-Tarang app is for monitoring the real time Status of Transmission System.
  • E-Trans app is a platform for better price discovery in respect of Inter State Transmission projects to be awarded through tariff based competitive bidding (TBCB) process.
  • ‘DEEP (Discovery of Efficient Electricity Price) e-Bidding’ portal – the Portal will provide a common e-bidding platform with e-reverse auction facility to facilitate nation-wide power procurement through a wider network so as to bring uniformity and transparency in the process of power procurement.
  • Mobile app for Star Labelled Appliances – BEE has developed a mobile app for Standards and Labeling Programme (S&L) for consumers, which is linked with S&L database of BEE and provides a platform to receive real-time feedback from consumers and other stakeholders.

Other Good Governance Initiatives

  • Separate e-auction window of coal for Power Sector started.
  • Revised Guidelines for short-term procurement of power by Distribution Licensees through tariff based bidding process was notified on 30.3.2016. Introduction of short-term procurement through e-bidding portal will result in greater transparency and fairness in the procurement process for ultimate benefit of the consumers.
  • Self-certification of the electrical installations: Notifications on voltage level for self-certification under these Regulations have been notified on 16.5.2016. This will facilitate Ease of Doing Business.
  • e-bidding and reverse bidding for Goods & Services being procured under the Ministry and its PSUs has been implemented.
  • Study of “Best Practices of ten DISCOMs where AT&C losses reduced in last 5 years” conducted.
  • Third Party Sampling: To improve process of measurement of quality of coal. Central Institute of Mining and Fuel Research (CIMFR), Dhanbad appointed. Further, CIL would supply sized coal to power plants to increase its power generation efficiency.
  • Policy guidelines notified for grant of Bridge Linkages to specified end use plants of Central and State Public Sector Undertakings (both in Power as well as Non-Power sector).
  • Government has approved continuation of the Payment Security Mechanism (PSM) beyond 31st October, 2016 for recovery of current over dues of state power utilities.

To empower the poor, Govt. has electrified 12k villages in 1k days; electrification of 6k more villages in progress

Targeting the critics of demonetisation move, Prime Minister Narendra Modi on Tuesday said some people were upset with him because he had struck the “ring leader of thieves” and claimed that demonetisation has destroyed in one stroke black money, terror funding as well as human and drug trafficking.

Addressing BJP’s ‘parivartan maharally’ in poll-bound Uttarakhand, Modi said the decision to demonetise Rs500 and Rs1,000 notes, has forced corrupt persons to deposit in banks black money they stored in cupboards and under mattresses, adding he is fulfilling his duty of a “chowkidar” (watchman) to get rid of black money and “dark hearts” which have ruined the country.

“In some, corruption is in the blood. They used back door to convert the money and thought Modi cannot see,” said Modi, adding, “But we knew and now they are being caught,” he said referring to various raids by law enforcement agencies on black money hoarders. Modi called note ban as “cleanliness drive” and expressed his gratitude to the people for standing by him. He also said the move is aimed at empowering the people and to give them a bright future.

“I am fighting to make the honest empowered,” Modi said adding that his November 8 decision has dealt a devastating blow to black money and terror funding.

“The decision is not being liked by some people as he has struck directly at the “ring leader of thieves” (choron ka sardar), the Prime Minister said.

Claiming that he was dedicated to serve the poor, Modi said while the UPA Government’s move to raise the number of subsidised cylinders from 9 to 12 was projected as momentous, his Government gave gas cylinders to five crore people below poverty line.

“18,000 villagers were living in 18th century without electricity… In thousand days, we have electrified 12,000 villages. Work on remaining 6,000 is on. Is this working for rich or empowering the poor,” he said.

Referring to the demands for ‘One Rank, One Pension’ by personnel of the armed forces, Modi said the party and the family which has ruled the country for over 40 years did nothing on the issue till the eve of 2014 Lok Sabha elections. Uttarakhand is among the various states which send thousands of youth to serve in the armed forces.

He said ahead of the general elections, the UPA allocated a mere Rs 500 crore “fearing that Modi, who has a special love for soldiers, may come up with something”. The PM said the OROP entails an expenditure of Rs 10,000 crore plus which his Government readily gave in installments.

He said the personnel understood his plight that giving the entire sum in one go was not possible and they agreed to take it in installments. Noting that development was his Government’s only objective and he was working consistently towards that goal, he said the fight against corruption and black money launched on November 8 with demonetisation was a step towards empowering the country’s honest people.

“Did you give me the huge mandate in 2014 to cut ribbons and lighting ceremonial lamps only at inauguration ceremonies? Didn’t you vote me to combat and end corruption? Shouldn’t we fight the evil with all our might?” he asked.

India gains momentum in terms of renewable energy expansion, leading Spain & UK in wind energy front.

The ambitious program set by the Modi government to add over 2 lakh mw of renewable energy capacity is a massive target by any standards. The largest renewable capacity expansion programme in the world is being taken up by India.

In line with its focus on clean energy and to provide 24×7 affordable power to all citizens of the country, the Ministry of New and Renewable Energy (MNRE) has taken several steps to fructify Prime Minister Narendra Modi’s dream of clean energy.

The government is aiming to increase share of clean energy through massive thrust in renewables. Core drivers for development and deployment of new and renewable energy in India have been Energy security, Electricity shortages, Energy Access, Climate change etc.

As on 31st October, 2016, Solar Energy Projects with an aggregate capacity of over 8727.62 MW has been installed in the country.

A capacity addition of 14.30 GW of renewable energy has been reported during the last two and half years under Grid Connected Renewable Power. A total of 7060 MW of grid-connected power generation capacity from renewable energy sources like solar (3019 MW) and wind (3423 MW), Small Hydro Power (218 MW), Bio-Power (400 MW) has been added during 2015-16 in the country against target of 4,460 MW.  During 2016-17, a total 3575 MW capacity has been added till 31.10.2016, making cumulative achievement 46,327 MW.

Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy consumption has increases the energy demand of the country. In order to meet the energy demand, India has total installed power generation capacity of 307.27 GW as on 31.10.2016 from all resources. With 46.33 GW installed renewable power capacity, the renewable power has a share of about 15% to the total installed capacity.

Confident by the growth rate in clean energy sector, the Government of India in its submission to the United Nations Frame Work Convention on Climate Change on Intended Nationally Determined Contribution (INDC) has stated that India will achieve 40% cumulative Electric power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost International Finance including from Green Climate Fund.

The government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation-based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc.

The National Solar Mission aims to promote the development and use of solar energy for power generation and other uses, with the ultimate objective of making solar energy compete with fossil-based energy options. The objective of the National Solar Mission is to reduce the cost of solar power generation in the country through long-term policy, large scale deployment goals, aggressive R&D and the domestic production of critical raw materials, components and products. Renewable energy is becoming increasingly cost-competitive as compared to fossil fuel-based generation.

In order to achieve the renewable energy target of 175 GW by the year 2022, the major programmes/ schemes on implementation of Solar Park, Solar Defence Scheme, Solar scheme for CPUs Solar PV power plants on Canal Bank and Canal Tops, Solar Pump, Solar Rooftop etc have been launched during the last two years.

Various policy measures have been initiated and special steps taken in addition to providing financial support to various schemes being implemented by the Ministry of New and Renewable Energy (MNRE) for achieving the target of  renewable energy capacity to 175 GW by the year 2022.

The increased use of indigenous renewable resources is expected to reduce India’s dependence on expensive imported fossil fuels. India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources viz. Wind – 102 GW (at 80 meter mast height); Small Hydro – 20 GW; Bio-energy – 25 GW; and 750 GW solar power, assuming 3% wasteland.

India leads Spain, UK in wind energy generation

  • Largest ever wind power capacity addition of 3423 MW in 2015-16 exceeding target by 43%. During 2016-17, a total 1502 MW capacity has been added till 31.10.2016, making cumulative achievement 28,279 MW. Now, in terms of wind power installed capacity India is globally placed at 4th position after China, USA and Germany.
  • Biggest ever solar power capacity addition of 3,019 MW in 2015-16 exceeding target by 116%. During 2016-17, a total 1750 MW capacity has been added till 31.10.2016, making cumulative achievement 8728 MW.
  • 31,472 Solar Pumps installed in 2015-16, higher than total number of pumps installed during last 24 years i.e. since beginning of the programme in 1991. So far, 92305 Solar Pump have been installed in the Country as on 31.10.2016.
  • Solar projects of capacity 20,904 MW were tendered in 2015-16. Of these, 11,209 MW capacity already awarded.
  • A capacity addition of 0.53 GW has been added under Grid Connected Renewable Power since last two and half years from Small Hydro Power plants.
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation. During 2016-17, against a target of 400 MW, 51 MW installations of biomass power plants has been achieved making a cumulative achievement to 4882 MW.
  • Family Type Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). During 2016-17, against a target of 1.00 lakh biogas plants, 0.26 lakh biogas plants installations has been achieved making a cumulative achievement to 49.35 lakh biogas plants as on 31.10.2016.

TARGETS
The Government of India has set a target of 175 GW renewable power installed capacity by the end of 2022. This includes 60 GW from wind power, 100 GW from solar power, 10 GW from biomass power and 5 GW from small hydro power.

A target of 16660 MW grid renewable power (wind 4000 MW, solar 12000 MW, small hydro power 250 MW, bio-power 400 MW and waste to power 10 MW),  has been set for 2016-17. Besides, under off-grid renewable system, targets of 15 MW eq. waste to energy, 60 MW eq. biomass non-bagasse cogeneration, 10 MW eq. biomass gasifiers, 1.0 MW eq. small wind/hybrid systems, 100 MW eq. solar photovoltaic systems, 1.0 MW eq. micro hydel and 100,000 nos. family size biogas plants have been set for 2016-17.

Exemption of power duty for rooftop solar in Rajasthan by CM @VasundharaBJP ji will encourage renewable energy usage

A Mumbai-based organisation, which works for hearing impaired persons, will give lessons to selected doctors of the state on how to communicate effectively with hearing and speech impaired patients coming to their hospitals for treatment. The orders were issued on December 22.

The health department has issued directions that at least one doctor in government and private hospitals, which have more than 50-bed capacity, should learn the sign language to communicate with the hearing and speech impaired patients.

Acting on health minister’s directions, now the health department has issued directions to all the hospitals with at least 50-bed capacity that they should have a doctor who can understand sign language of the speech and hearing impaired patients.

The health department has sent letters to all district hospitals to nominate a doctor in their hospital to learn sign language. “We have given time to all the officials in district hospitals to nominate a doctor by Monday to learn sign language,” a health department official said.

Now, the health department has roped in an organisation, which is based in Mumbai to help doctors learning sign language. “The Mumbai-based organisation also has centres in other states and works for hearing and speech impaired people. It will teach the sign language to doctors in a programme, which will be at least 15-day long and held in Jaipur,” said Dr Ramavatar Jaiswal, state nodal officer, National Programme for prevention and control of deafness.

He said that initially they have started taking measures to teach sign language to at least one doctor in the district hospitals of all 33 districts.

Jaiswal added that in January they will start holding classes for doctors on sign language. There will be at least four or five sign language experts to teach the doctors.

On December 18, health minister Kalicharan Saraf had directed the officials to make arrangements of at least one doctor in hospitals to know sign language as doctors find it difficult to understand what the hearing and speech impaired patient is trying to communicate.

By 2022, India would become one of the largest installations in renewable energy in the world.

Asserting that the present generation has the duty to leave behind a better place to live in for the next generation, Minister of State for Power, Coal, New and Renewable Energy and Mines Piyush Goyal on Saturday said by 2022, India will be one of the largest installations of renewable energy in world.

Goyal also said Prime Minister Narendra Modi is committed towards ramping up renewable energy.

“This government is committed and has created an actionable agenda so that by 2022 India would probably be one of the world’s fasted growing renewable energy in the country, one of the largest installations of renewable energy in the world if not the largest. India will have about 2, 25,000 MW of renewable energy by 2022, which is the world’s largest installation.”

Under its plan, Goyal said, the government is also committed to set up solar plant of one lakh megawatt to meet its security needs.

“So far in the two and half years, we have expanded the solar install capacity by 200 percent, i.e 9,000 MW and by end of December 2017 I expect it to be 20,000 MW,” he added.

Goyla further said India is also considering to expand its hydro power capacity which currently stands at 25 MW.

“Similarly in wind we are aggressively taking it to 20,000 MW, apart from expanding the scope of nuclear and small hydro projects,” he said.

Goyal also expressed optimism at world’s commitment under the Paris declaration and the Conference of the Parties (CoP) 21 to fight against climate change.

“In the Intended Nationally Determined Contributions (INDCs), I am delighted to say that India has been an integral part of that entire journey where it was at the forefront of negotiations in the Paris agreement,” he said.

UDAY scheme has made Haryana Power Discom become profitable for the first time since inception.

Dakshin Haryana Bijli Vitran Nigam (DHBVN), a state-owned power distribution company in Haryana, has eliminated losses for the first time ever since its inception. The discom, which reported losses of more than Rs 2,088 crore in 2014, has registered a profit of Rs 78 crore in the first half of the current financial year, Hindustan Times reported on Tuesday (20 December).

Established in July 1999, the company has always recorded losses worth Rs 2,000 crore or more, resulting from electricity theft, non-payment of dues, transmission and distribution losses and increasing fuel surcharge. Having turned its fate, the company now plans to double the profit by the end of the current financial year.

With an intent to find a permanent solution to the financial mess that the power distribution in India is in, the Ministry of Power had launched Ujwal DISCOM Assurance Yojana (UDAY). Improving operational efficiencies of discoms such as DHBVN is the primary objective of UDAY, and it seems that the scheme is making a difference.

The Minister of State with independent charge for Power, Coal and New & Renewable Energy Mr. Piyush Goyal had lauded UDAY as a truly collaborative effort between the Centre and the states. When UDAY was launched, there was a lot of skepticism in the mainstream media and in the financial press around the scheme being yet another attempt to recapitalize loss-making businesses with no accountability.

Power consumers to be benefitted as India making huge savings by reducing coal imports; coal production grows 1.6%

The government released the coal production rate during April to November, 2016 on Thursday. As per the record, the production reaches 391.10 Mte, 1.6% overall growth till November.  
The Government has taken several steps to further push the progress made by Coal Ministry in the last year. 
In line with the Coal mines auctions of 2015, the auction and allotment proceeds from 83 coal mines allocated so far and estimated at more than Rs 3.95 lakh crore over the life of the mine/lease period, which shall be devolving entirely to the coal bearing States. The actual revenue generated from these coal mines up to Oct’16 is 2,779 crore (excluding Royalty, Cess and Taxes). 
The benefit to consumers in terms of reduction of electricity tariff from auction of 9 coal blocks to ‘Power’ Sector is likely to be about Rs. 69,310.97 crore. 
The production of raw coal in the country during April-November of 2016-17 was 391.10 Mte compared to 385.11 Mte during the corresponding period of previous year. The overall growth in Coal production during April- November 2016 was 1.6%. Lignite mining capacity of NLCIL is 30.6 Million Tonnes per annum as on 30.11.2016.
The company has also enhanced its power generating capacity from 4275.50 MW (as on March 2016) to 4293.50 MW inclusive of 10 MW Solar and 43.50 MW wind power. The Coal Ministry has given special focus to decrease coal imports in the country. Government has saved about Rs 20,000 crore in the year 2015-16 and about Rs.4,844 crore in the first four months of the current year.
Keeping view in the digitization, the ministry has also fully implemented e-office application in October 2016 and the entire file work in the Ministry is now being done electronically. 
The ministry claims that digitization process has brought ‘transparency’ and ‘efficiency’ in the working as it would facilitate quick processing and instant movement of files thus enabling seamless and fast decision making.

India to invest big on transmission lines under green corridor project to meet 175GW clean energy target by 2022

India will invest Rs127 billion on lines to transmit power from solar parks to enable Prime Minister Narendra Modi’s goal of boosting clean energy capacity to 175 gigawatts by 2022.

The dedicated transmission lines, part of the so-called green corridor project, will transmit 20 gigawatts of power capacity from 34 solar parks across 21 states, the government said Wednesday in a series of reports commissioned by minister for power, coal and mines Piyush Goyal. The reports were written by Power Grid Corp. of India Ltd to develop plans to integrate renewable energy on the national grid.

The green-energy corridor is part of the country’s plans to boost transmission capacity to enable a seamless flow of electricity from clean electricity producing states to consuming states that face power shortages. New lines will also help manage intermittency challenges of renewable energy, especially as clean sources increase their share of power generation to almost 50% in some states.

The inter-state portion of the transmission investments will cost Rs80 billion, while intra-state lines will require another Rs47.45 billion, according to the government.

India will receive a soft loan of about €1billion for the corridor’s development from the German development bank KfW, Goyal informed India’s lower house of Parliament last week.

Intra-state transmission under the plan will be funded through a 20% equity state held by the state government, 40% in the form of a grant from the National Clean Energy Fund and the soft loan accounting for the remaining 40%.

The inter-state transmission schemes are to be funded as 30% equity by Power Grid Corp. and 70% as a soft loan, according to Goyal.

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