8-Dec-2022: Reforms in Power sector
Government of India have launched the Reforms-based and Results-linked Revamped Distribution Sector Scheme on 20th July 2021 with the objective of improving the quality and reliability of power supply to consumers through a financially sustainable and operationally efficient distribution Sector. The scheme has an outlay of Rs.3,03,758 crore and estimated Gross Budgetary Support from Central Government of Rs.97,631 crore.
Revamped Distribution Sector Scheme (RDSS) was formulated in consultation with various Ministries and DISCOMs. None of the State Governments have opposed to this.
Government of India announced privatization of Power Departments & Utilities in Union Territories under Aatma Nirbhar Bharat Abhiyaan with the objective of providing better services to consumers with improvement in operational and financial efficiencies. Union Territories have undertaken necessary steps for privatization of their electricity distribution.
Employees Union of Chandigarh and Puducherry have initially opposed privatization. They have filed writ petitions in High Court of Punjab & Haryana and High Court of Madras respectively. Union Territories, as per requirement, initiated dialogue with the Unions & Associations.
30-Jul-2022: PM launches Power Sector’s Revamped Distribution Sector Scheme
Prime Minister Shri Narendra Modi participated in the Grand Finale marking the culmination of ‘Ujjwal Bharat Ujjwal Bhavishya – Power @2047’ today via video conferencing. During the programme, he launched the Revamped Distribution Sector Scheme. He also dedicated and laid the foundation stone of various green energy projects of NTPC. He launched the National Solar rooftop portal.
The Prime Minister interacted with the beneficiaries of various schemes. Shri Hansraj from Mandi informed the Prime Minister about his experience with the KUSUM scheme. The Prime Minister enquired how other farmers are getting interested in the scheme. Shri Hansraj also thanked the Prime Minister for the scheme and elaborated on how this scheme helped him and his family.
Shri Kalaha Reang from Khowai, Tripura informed the Prime Minister about the changes brought about by the arrival of electricity in his village. He informed that after Solar Power, dependence on kerosene has reduced. The Prime Minister further asked about other changes brought in by the arrival of electricity. Shri Reang said that now they are able to charge the mobile phones for which they used to travel long distances. Solar power has improved the education of children, and local industries and evening life has undergone a change. The Prime Minister asked him to utilize educational tv channels run by the government on TV. The Prime Minister also asked him to save electricity.
Shri Kagu Kranti Kumar of Visakhapatnam, a beneficiary of Deendayal Upadhyaya Gram Jyoti Yojna, also detailed the positive impact of electricity in his life. The Prime Minister said that the country will progress only when every citizen progresses and expressed satisfaction that facilities of electricity are reaching all the villages of the country.
Smt Pramila Devi of Varanasi, a beneficiary of the Integrated Power Development Scheme was greeted by Har Har Mahadev by the Prime Minister. The Prime Minister, a Member of Parliament from Varanasi, asked her to pay respect to Baba Vishwanath on his behalf. The Prime Minister also expressed happiness that overhead wires are gradually being phased out leading to better safety and aesthetic outcomes.
Shri Dhiren Sureshbhai Patel from Ahmedabad talked about his experience installing solar panels. The Prime Minister said that by installing rooftop panels Dhirenbhai became an electricity seller. The Prime Minister said that in the last year many steps have been taken to ensure a confident position of the country in the energy sector by 2047. He said people’s participation has been the greatest strength in this regard.
Addressing the gathering, the Prime Minister said Energy and power sectors have a huge role to play in accelerating India's progress in the next 25 years. The strength of the energy sector is also important for Ease of Doing Business and is equally important for Ease of Living. He said that the projects launched today are significant steps in the direction of green energy and energy security for the county. These projects will strengthen India’s renewable energy goals, commitment and aspirations of its green mobility, he said. The Prime Minister announced that work on two big green hydrogen projects in Ladakh and Gujarat is starting today. The plant being set up in Ladakh will produce green hydrogen for vehicles in the country. This will be the first project in the country which will make commercial use of green hydrogen-based transport possible. Ladakh very soon will be the first place in the country where fuel cell electric vehicles will start to ply. This will help in making Ladakh a carbon-neutral region, he said.
The Prime Minister also informed that after blending ethanol in petrol and aviation fuel, now the country is moving towards blending green hydrogen in piped natural gas pipelines. Which will reduce import dependence on natural gas.
Remembering the poor state of power scenario before 2014, The Prime Minister reminded that eight years ago, the Government took the initiative to transform every part of the country's power sector. Four different directions were worked together to improve the power system - Generation, Transmission, Distribution and Connection.
The Prime Minister informed that in the last 8 years, about 1,70,000 MW of electricity generation capacity has been added in the country. One Nation One Power Grid has become the strength of the country today. About 1,70,000 circuit kilometre transmission lines have been laid to connect the entire country. Furthermore, by giving 3 crore connections under the Saubhagya Scheme, we are also nearing the saturation goal, he added.
The Prime Minister said ‘we had resolved to create 175 GW of renewable energy capacity by the completion of 75 years of independence. Today we have come close to this goal. So far, about 170 GW capacity has been installed from non-fossil sources. He added that today, India is in the top 4-5 countries of the world in terms of installed solar capacity. Many of the world's largest solar power plants are in India today. The country has got two more big solar plants today. These plants built in Telangana and Kerala are the first and second largest floating solar plants in the country. The Prime Minister said that solar panels are being encouraged in households.
The Prime Minister said that along with increasing the production of electricity, the emphasis of the government is also on saving electricity. “Saving electricity means enriching the future. PM Kusum Yojana is a great example of this. We are providing solar pump facility to farmers, helping to install solar panels on the side of the fields”, he said.
The Prime Minister said that the UJALA scheme has also played a big role in reducing electricity consumption and bills in the country. Every year 50 thousand crore rupees are saved from the electricity bills of poor and middle-class households.
The Prime Minister noted that with the passage of time, a serious disorder has come into our politics. In politics, people should have the courage, to tell the truth, but we see that some states try to avoid it. This strategy may sound like good politics in the short term. But it is like postponing today's truth, today's challenges, for tomorrow, for our children, and for our future generations. This thinking of avoiding solutions to today's problems and leaving them for the future is not good for the country, he said. This thought process has pushed the power sector in many states into huge problems.
The Prime Minister said losses in our distribution sector are in double digits. Whereas in the developed countries of the world it is in single digit. This means that we have a lot of wastage of electricity and therefore we have to generate more electricity than we need to meet the demand for electricity. He said there is a lack of investment in reducing distribution and transmission losses in many states. The Prime Minister remarked that people will be surprised to know that different states have outstanding dues of more than Rs 1 lakh crore. They have to give this money to power generation companies. Power distribution companies are owed more than 60 thousand crore rupees from many government departments, and local bodies. He said that these companies are not able to get even the money that has been committed for subsidy on electricity in different states on time and in full. This arrear is also more than Rs 75,000 crore. Those responsible for activities ranging from the generation of electricity to the door-to-door delivery, their about two and a half lakh crore rupees are trapped.
The Prime Minister requested the states whose dues are pending, to clear them as soon as possible. Also, honestly consider the reasons that even when the countrymen pay their electricity bills honestly, why do some states have arrears again and again? He said this is not a matter of ‘Rajniti’ (politics) but pertains to 'Rashtra Niti’ and nation building, he said
He ended by reminding the stakeholders that the health of the electricity sector is everyone’s responsibility .
Background
Under the leadership of the Prime Minister, the government has taken multiple path-breaking initiatives in the power sector. These reforms have transformed the sector, with the focus being on making affordable power available for all. Electrification of about 18,000 villages which did not have access to power earlier signified the commitment of the government towards ensuring last mile outreach.
The Ministry of Power’s flagship Revamped Distribution Sector Scheme is aimed at improving the operational efficiencies and financial sustainability of the DISCOMs and Power Departments. With an outlay of over Rs. 3 lakh crore over a period of five years from FY 2021-22 to FY 2025-26, the scheme aims to provide financial assistance to DISCOMs for modernization and strengthening of distribution infrastructure, focusing on the improvement of the reliability and quality of supply to end consumers. It also aims to reduce the AT&C (Aggregate Technical and Commercial) losses to pan-India levels of 12-15% and the ACS-ARR (Average Cost of Supply-Average Revenue Realized) gap to zero by 2024-25 by improving the operational efficiencies and financial sustainability of all state-sector DISCOMs and Power Departments.
During the programme, the Prime Minister also dedicated and laid the foundation stone of various green energy projects of NTPC worth over Rs 5200 crore. He inaugurated the 100 MW Ramagundam Floating Solar Project in Telangana and the 92 MW Kayamkulam Floating Solar Project in Kerala. He laid the foundation stone of the 735 MW Nokh Solar Project in Rajasthan, Green Hydrogen Mobility Project in Leh and Kawas Green Hydrogen Blending with Natural Gas project in Gujarat.
The Ramagundam project is India’s largest floating solar PV project with 4.5 lakh ‘Made in India’ solar PV modules. Kayamkulam project is the second largest floating solar PV project consisting of 3 lakh ‘Made in India’ solar PV panels floating on water.
The 735 MW Solar PV Project at Nokh, in Jaisalmer, Rajasthan is India’s largest Domestic Content Requirement based Solar project with 1000 MWp at a single location, deploying high-wattage bifacial PV Modules with a tracker system. The Green Hydrogen Mobility Project at Leh, Ladakh is a pilot project and aims for five Fuel Cell Buses to be run in and around Leh. This pilot project would be the first deployment of Fuel Cell Electric Vehicles for public use in India. The Green Hydrogen Blending Pilot Project at NTPC Kawas Township will be India’s first Green Hydrogen Blending Project helping in reducing the usage of natural gas.
The Prime Minister also launched a national solar rooftop portal, which will enable online tracking of the process of installation of rooftop solar plants, starting from registering the applications to release of subsidies in residential consumers’ bank accounts after installation and inspection of the plant.
‘Ujjwal Bharat Ujjwal Bhavishya – Power @2047’ is taking place from 25th to 30th July, as part of the ongoing ‘Azadi Ka Amrit Mahotsav’. Organised across the country, it showcases the transformation in the power sector achieved in the last eight years. It aims to empower citizens by improving their awareness and participation in various power-related initiatives, schemes and programmes of government.
19-Nov-2022: Prime Minister Shri Narendra Modi dedicates to the nation the 600 MW Kameng Hydro power Station implemented by NEEPCO Ltd., a Mini Ratna Power PSU under Ministry of Power
Prime Minister Shri Narendra Modi dedicated the 600 MW Kameng Hydro Power Station to the nation today, the biggest Hydro Power Project implemented by NEEPCO Ltd., a Mini Ratna Power PSU under Ministry of Power.
Union Minister of Power & NRE Shri R.K. Singh under the visionary leadership of the Prime Minister has monitored the project regularly to ensure that in spite of various challenges the Kameng hydro project is commissioned and dedicated to nation for producing clean energy and to bring prosperity in Arunachal Pradesh. The Minister has assigned high priority to development of NER and development of hydro power for energy transition and grid stability.
Commissioning of the sixth hydro power plant in the North East i.e. 600 MW Kameng Hydro Power Station in Arunachal Pradesh will be a major step towards fulfilling Nationally Determined Contribution (NDC) of the Government of India pledged under Paris Agreement 2015. The project will form part of projected hydro capacity addition of 30000 MW by 2030.
The project stretches over more than 80 kilometers in West Kameng District of Arunachal Pradesh at a cost of approximately Rs 8200 Crore.
The Project has two dams and a powerhouse having 4 units of 150 MW to generate 3353 million units of electricity. Generation of 3353 Million Units annually from the project will make Arunachal Pradesh a power surplus state with huge benefits to the National Grid in terms of grid stability and integration and balancing of solar and wind energy sources in the grid.
While most of the infrastructure projects world over got severely impacted by Covid-19 pandemic, this mega project was successfully commissioned by NEEPCO Ltd (A Govt. of India enterprise and a wholly owned subsidiary of the Maharatna, NTPC Ltd) progressively during June, 2020 to February, 2021 despite all odds.
Union Minister of Law & Justice, Shri Kiren Rijiju, Governor of Arunachal Pradesh Brig. (Dr.) B.D. Mishra (Retd.), Chief Minister of Arunachal Pradesh, Shri Pema Khandu, Deputy Chief Minister of Arunachal Pradesh, Shri Chowna Mein and Member of Parliament, Shri Nabam Rebia attended the ceremony.
NEEPCO Ltd, a Govt. of India Mini Ratna Schedule-A PSU under Ministry of Power is one of the leading power generating enterprise having an aggregate operational capacity of 2057 MW, comprising of hydro, natural gas based/ thermal power stations as well as Solar and has significantly contributed towards improvement of power scenario in the North Eastern Region. The company is now foraying into J&K for solar as well as multipurpose projects.
19-Oct-2022: Achieving E20 blending with petrol by 2025 would help save foreign exchange for the country worth about Rs. 30000 crores per annum
“India is ready from the supply side to launch E20 and the E20 fuel will be available from April 2023. Target for 20 percent blending has been advanced by 5 years from 2030 to 2025.” said Shri Hardeep S. Puri, Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs today. However, he said that there is a need to massively upscale the production of flex-fuel engine vehicles in the country.
The Minister was addressing the gathering at the Plenary Session on “A giant leap for biofuels – Ethanol blending & SATAT Scheme” at SIAM's International Conference on Biofuels – A Pathway Towards Sustainable Future. Several dignitaries including Mr. Andre Aranha Correa Do Lago, Ambassador of Brazil to India and representatives from energy and auto industry were present at the event.
The Minister assured the automobile manufacturers that as the world's fastest-growing and most robust major economy, there will be guaranteed consumer demand for flex-fuel and E20-compatible vehicles. The Govt. of India, as has been reiterated, will provide comprehensive support from the supply, policy, and demand side for making the sale of flex-fuel E10 and E20 vehicles a viable business proposition for the auto industry, he said.
He said that Government of India under leadership of Prime Minister Shri Narendra Modi has realised the game-changing opportunity for achieving economic growth, especially for the farming and rural economy, increasing India's domestic energy production and self-sufficiency, reducing air pollution, and helping India lead the world toward a clean energy transition.
In this background, National Biofuel Policy was enacted in 2018 to promote the production and consumption of Biofuels. Ethanol-blending percentage in petrol rose sharply from 0.67% in 2013 to 10% in May 2022, i.e., 5 months ahead of schedule, informed Shri Hardeep S. Puri.
The Minister further added that the policy has translated into a reduction of 2.7 million tonnes of CO2 emissions and savings of more than Rs. 50,000 crores of foreign exchange. Achieving E20 blending with petrol by 2025 would help save foreign exchange for the country worth about Rs. 30000 crores per annum. He further informed that the number of petrol pumps selling Biofuels has increased three folds from 29897 in 2016-17 to 67641 in 2021-22. India’s ethanol demand is poised to grow to 10.16 billion litres by 2025.
During the event, Shri Hardeep S. Puri further elaborated upon the efforts of Government to promote production of biofuels in the country. He mentioned about the twelve commercial plants and ten demonstration plants of 2G biorefineries (using agricultural waste as substrate) that have been proposed to be built under the Pradhan Mantri JI-VAN (Jaiv Indhan-Vatavaran Anukool Fasal Awashesh Nivaran) Yojana in regions with adequate biomass supply. He also spoke about Asia’s 2G ethanol biorefinery, which was unveiled by Prime Minister in Panipat, Haryana in August, 2022.
India is also launching a Global Alliance on Biofuels, along with USA and Brazil, during India’s Presidency of G20, the Minister said.
The Minister also talked about the support provided by Government to Bio-energy technologies such as CBG with initiatives such as SATAT, under which 37 CBG plants have been commissioned, and approximately 9000 tonnes of Compressed Bio-Gas have been sold.
Shri Hardeep S. Puri highlighted that the forex saved by the government by substituting imported petroleum fuel with Biofuel and natural gas with CBG is being used to subsidise other low-carbon mobility technologies, such as EVs, forming a self-reinforcing loop of the clean energy transition. So far, 4003 EV Charging Stations and 72 Battery Swapping Stations have been put up by OMCs across the country. OMCs have also planned to set up 20000 EVCS in major cities and Highways across the country by 2024, he informed.
The Minister called upon the Indian automakers that they must continue on the path of sustainability in order to make decarbonised mobility a reality. The nimble shift witnessed during Bharat Stage VI adoption needs to be replicated for the biofuel adoption initiatives.
In his concluding remarks, Shri Hardeep S. Puri assured support to the auto industry from India's leading OMCs and refineries, whose combined marketing, refining, and R&D capabilities can accelerate the synergies.