A brief review on targets of MoP during the second quarter 2013-14

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A Brief Outlook on Targets of MoP During the Second Quarter 2013-14

Twelveth five year plan unlike other five year plans is showing a better statistical performance comparitively. This will only be justified when the generation targets meet the Demand and Supply of the nation. The coal shortages and low gas supplies remain to hinder the PLF's of thermal power plants.Coal imports & pricing and gas pricing are other issues that need better attention in this five year plan. Below is a brief outlook of the performance statistics for the second quarter.
  1. Government Update: The overall performance of the power sector during the first six months of 2013-14 has been fairly good in respect of most of the parameters. Ministry has taken several policy initiatives during the last quarters which are enumerated below:
    1. Standard Bidding documents for Case II bidding has been finalized. Case I bidding is in advance stage and likely to be finalized in a couple of weeks. 
    2. Two more UMPPs have been taken up, one in Tamil Nadu and the other one in Odisha. These are Coastal Tamil Nadu Power Ltd., Cheyyur UMPP and Odisha Integrated Power Ltd., Odisha UMPP. RFQ has been issued for these two UMPPs on DBFOT basis on September 26 and September 25 respectively. Notice for Pre-Application Conference for these two UMPPS was held on October 15, 2013. 
    3. A draft Cabinet Note is being finalized for extension of time on cost plus based tariff fixation for Hydro electric projects up to March, 2017. As per the Tariff Policy 2006, cost plus tariff regime for hydro power projects is allowed till December, 2015. 
    4. The power of CEA for techno economic clearance for hydro projects is proposed to be extended from present limit of INR 500 crore to INR 1000 Crore.
    5. Guidelines has been finalized under the Hydro Policy, 2008 for 1% free power for local development and circulated to all the State Governments for its implementation.
    6. The draft amendments to the Electricity Act, 2003 has been uploaded on Ministry of Power's website for inviting comments. 
    7. In the wake of massive failure of grids last year (2012) and based on CEA's recommendation, it is proposed to make Posco an independent institution under the Government instead of a subsidiary of Power Grid presently.
    8. Ministry is proposing to bring a new business model where the power supplier and the electricity distribution network provider will be separate entities controlling the content and wires separately.
    9. A draft cabinet note has been circulated on amending Mega Power Policy 2009 to extend benefits to provisional Mega power Projects who are compelled to tie up to 35% of power with the respective states in lieu of facilitation of project implementation. Such developers will have to tie up at least 65% of installed capacity/net capacity through competitive bidding from the existing 85%.
    10. Ministry is regularly monitoring the progress of RGGVY and R-APDRP rigorously with the States.
  2. Capacity Addition: A capacity addition target of 4423.8 MW for the second quarter of 2013-14 comprising of 613.3 MW (Central Sector), 1731 MW (State Sector) and 2079.5 MW (Private Sector) was set. Against this target, the actual achievement during this quarter has been 2286 MW which is 51.7% of the target, indicating a slight slowdown. The Private Sector addition was far better than in the Central and State Sectors.
  3. In the Private sector, a capacity addition of 1250 MW (60.1%) was achieved, while achievement! n the State sector was 916 MW (52.9%), thus fell short of their targets of 2,079.5 MW and 1,731 MW respectively. However, there was major substantial shortfall in the Central sector achieving only 120 MW (19.6%) against a target of 613.3 MW.
  4. The cumulative capacity addition during the XII Plan period at the end of the second quarter (September 30, 2013) was 25,421 MW against the XII Plan target of 88,537 MW.
  5. The total capacity addition of 4798 MW in the first two quarters, 4,501 MW (93.8%) was thermal and 297 MW (6.2%) hydro. Out of the total thermal capacity of 4,501 MW, 4230 MW (88.2%) was coal based & 271 MW gas based (5.6%). Gas-based plants continues to run on low capacity factor due to shortage of gas. Further, major sourcing of plant and equipment was of Chinese origin.
  6. Currently, more than 60,000 MW of Chinese power plants are in operation or under construction. In the current Annual (2013-14) thermal target for Chinese equipment of 5,975 MW, the achievement during the first six months has been at 3,030 MW (50.7%), whereas the achievement in BHEL is very dismal as during the same period the achievement has been at 1,121 MW as against the target of 9234.3 MW.
  7. Generation: The electricity generation during the second quarter was 242.8 billion units (101%) of the targeted 241.586 billion units (bu). Overall the generation during the first half year has been at 481.849 bu (100%) achieving a growth of +5.73% over 2012-13.
  8. The overall availability of coal for the power plants was better with total availability going up to 239.9 million tonnes against 215.7 million tonnes with a growth of 11.2%. Most of this increase of 24.2 million tonnes (MT) was contributed by imported coal which increased to 43.1 MT as against 25.9 MT last year. The domestic availability increased marginally by 3.7% only.
  9. Transmission: The proposed target for adding new transmission lines of 220 kV, 400 kV, 500 kV HVDC and 765 kV has been set at 18,674 ckm for FY 2013-14 with 2585 ckm in the Central sector, 8938 ckm in the State sector and 2486 ckm in the Private sector. The progress in the second quarter has been lowered at 3081 ckm (69.4%) as against 4440 ckm planned.
  10. In the first half of 2013-14, against the target of 6132 ckm, 5,983 ckm of transmission line was added. In terms of the sector-wise performance, the Central and State sector have done relatively well with 2,487 ckm. (183.7%) and 3,022 ckm. (93.7%) as against a target of 1354 ckm. and 3224 ckm. respectively. Private sector has been able to achieve only 474 ckm. (30.5%) against a target of 1,554 ckm.
  11. RGGVY: The target of 600 unelectrified villages (UEV) and 5 lakh of BPL households for the second quarter, the actual achievement has been 199 villages and 3.1 lakh BPL households, implying that only 33% and 62% of the targets were met, respectively. The overall achievement for the first two quarters had been for 531 villages and 5.4 lakh BPL connections as against a target of 1200 villages and 8 lakh BPL connections. Overall, a total of 1,07,615 villages have been electrified so far and electricity connections have been released to 2.12 crore BPL households till September 30, 2013.
  12. R-APDRP: Joint Secretary (Distribution) gave the latest status on R-APDRP wherein he stated that under Part-A (IT enabled system) projects worth INR 5233.65 Crore for 1398 towns and 70 Part-A (SCADA) projects worth INR 1574.71 Crore; 1229 Part-B projects worth INR 30,381.46 Crore have been sanctioned till September 30, 2013 under the programme. It was further stated that against the total disbursements of INR 400 Crore for the year 2013-14 under IT, the released amount for the first two quarters has been INR 297 Crore (74.25%).
  13. The cumulative disbursement as on September 30, 2013 has been at INR 7017 Crore. On a query by Member (Energy), on the progress of Go-live towns, it was stated by CMD, PFC that against planned 300 centres during the FY 2013-14, the actual achievement during the first six months has been for 211 towns achieving more than 70%. The overall go-live towns are 400 at the end of September 30, 2013.
  14. Financial Restructuring of State Discoms: Out of the 7 focus States (Andhra Pradesh, Haryana, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu & Uttar Pradesh), only four States Haryana, Rajasthan, Tamil Nadu and Uttar Pradesh participated in the FRP. Three State namely Tamil Nadu, Uttar Pradesh and Rajasthan have issued bonds for an amount of INR 6,800 Crore, INR 15,000 Crore and INR 15,000 Crore respectively. Haryana state is in the process of floating of bonds.
  15. Andhra Pradesh State, which was earlier part of the seven states, could not join the scheme due to the defect in the reporting system of receivables in balance sheet. The State of Karnataka was not part of the focus States but has now given its willingness to join in the scheme. Bihar and Jharkhand have also expressed to join in the scheme.The cutoff date for these four states has been extended from March 31, 2012 to March 31, 2013. In this context, the Cabinet approval would be sought shortly. 
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Source: Cerebral Business Research Pvt. Ltd.

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