The Ministry of Power in the current year has undertaken an array of reforms. Union Minister for Power and NRE Shri R.K Singh highlighting the reforms said that we have put in place rules and procedures for ease of doing business and ease of living. As a result of the reforms, power sector is poised for greater growth and more reforms are on the anvil in the next year, he remarked.

Shri Singh mentioned that the power sector has shown strong growth in demand in 2021 as it is 14 percent higher than in the previous year, this is indicative of the fact that our economy is recovering and the 28 million new consumers we have added are adding more appliances. The minister noted that the government has continued with reforms in the power sector and efforts also continue to keep the price of power low.

The reforms can be placed in the following categories:

1. Reforms and Restructuring (R&R)

• Electricity (Rights of Consumers) Rules, 2020

The Ministry of Power has notified Electricity (Rights of Consumers) Rules, 2020 on 31.12.2020 under section 176 of the Electricity Act, 2003. These Rules shall empower the consumers of electricity and emanate from the conviction that the power systems exist to serve the consumers and the consumers have rights to get the reliable services and quality electricity.  

Implementation of these Rules shall ensure that new electricity connections, refunds and other services are given in a time bound manner.  Wilful disregard to consumer rights will result in levying penalties on service providers.

An amendment to Electricity (Rights of Consumers) Rules, 2020 was also notified on 29.09.2021 wherein the limit for net metering was increased to 500KW from 10KW.

• Late Payment Surcharge Rules 2021

Electricity (Late Payment Surcharge) Rules, 2021 have been notified by the Central Government on 22nd February, 2021.Late Payment Surcharge means the charges payable by a distribution company to a generating company or electricity trader for power procured from it, or by a user of a transmission system to a transmission licensee on account of delay in payment of monthly charges beyond the due date. Late Payment Surcharge shall be payable on the payment outstanding after the due date at the base rate of Late Payment Surcharge applicable for the period for the first month of default.

• Waiver of ISTS Transmission Charges and Losses for Solar & Wind Power

In Order to promote generation from renewable sources of energy, Ministry of Power has issued an Order on 5th August 2020 for extension of waiver of Inter State Transmission System (ISTS) charges and losses for transmission of the electricity generated from solar and wind projects commissioned till 30th June 2023.Further an order was issued on 21.06.2021 for extension of waiver of Inter State Transmission System (ISTS) charges for transmission of the electricity generated from solar and wind projects up to 30.06.2025.Moreover vide this order the waiver of ISTS charges shall also be allowed for Hydro Pumped Storage Plant(PSP) and Battery Energy Storage System(BESS).

• Issuance of Renewable Purchase Obligations (RPO) Trajectory

Long term RPO growth trajectory for the period 2016-17 to 2018-19 has been notified by Ministry of Power on 22.7.2016. .An order on RPO Trajectory for a further period of three years i.e. from 2019-20 to 2021-22 under the provisions of Tariff Policy has been issued by Ministry of Power on 14.06.2018. In super-session of orders dated 22.7.2016 and 14.06.2018, Ministry of Power has specified new RPO trajectory vide order dated 29.01.2021. Trajectory for HPO has also been issued through this order.

This would help in meeting the renewable energy generation targets set by the Central Government.

• Introduction of Green Day Ahead Market (GDAM)

Green Day Ahead Market (GDAM) is a marketplace for trading of renewable power on a day-ahead basis. This would facilitate accomplishment of green targets as well as support integration of green energy in a most efficient, competitive and transparent manner. GDAM was launched on 25.10.2021.

The Green day Ahead Market will be available through the Power Exchanges. The GDAM market structure will be within the existing Day Ahead Market (DAM) structure but will create a separate clearing mechanism and price discovery for renewable and conventional energy sources.

It will give opportunity to the RE generators to sell their power and reduce curtailment and also the buyer of RE to transparently purchase green power from the market. It would also facilitate the obligated entities to meet its Renewable Purchase Obligation (RPO).

• Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021

Timely recovery of the costs due to change in law is having importance as the investment in the power sector largely depends upon the timely payments. At present the pass through under change of law is taking a lot of time, forcing the drying of the investment in the power sector. If payment is not made in time, it impacts the viability of the sector and the developers get financially stressed. If this is not addressed now, the investment will not come and the electricity consumers may face shortages of power once again. In order to address this issue, Ministry of Power has notified Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 on 22.10.2021.

• Electricity (Promotion of generation of Electricity from Must-Run Power Plant) Rules, 2021

Ministry of Power has notified Electricity (Promotion of generation of Electricity from Must-Run Power Plant) Rules, 2021 on 22.10.2021. This rule is mainly to achieve this goal and will help in promotion of the generation from renewable sources. This will ensure that the consumers get green and clean power and secure a healthy environment for the future generation. 

• Implementation of Phase- 1 of Market Based Economic Despatch (MBED)

With the objective of Redesigning of present market mechanism for lowering the cost of power purchase to Consumers, Framework for Implementation of Phase1 of Market Based Economic Despatch (MBED) wherein mandatory participation by ISGS ( Inter State Generation Stations) plants and voluntary participation by other generators, was communicated to CERC for  implementation from 1st  April, 2022.

• Redesigning the Renewable Energy Certificate(REC) Mechanism 

Ministry of Power assent was given to make amendment in the existing Renewable Energy Certificate (REC) mechanism, in order to  align the  present REC mechanism with the emerging changes in the power scenario and also to promote new renewable technologies.

2. Power Market Reforms:

• Green Term-Ahead Market (GTAM):Pan-India Green Term-Ahead Market in electricity was launched on 1st September, 2020. As a market segment, it has provided one more avenue to renewable to trade electricity which will, inter-alia, help to achieve ambitious renewable energy capacity addition targets of the Government of India. GTAM Contracts will enable obligated entities to procure renewable power at competitive prices at the power exchanges and help meet RPOs.  This would also reduce burden on renewable rich States which can trade the surplus renewable generation generated within the State pan-India. The total cleared volume in G-TAM was 785.83 MU in 2020-2021. In 2021-22, till September, 2021, the total cleared volume was 2744 MU.

• Green Day Ahead Market (GDAM): After the successful launch of Green Term-Ahead Market (GTAM) in August 2020, “Green Day Ahead Market (GDAM) - a Marketplace for trading of renewable power on a day-ahead basis” has been launched by Sh. R K Singh, Hon’ble Minister of Power and New & Renewable Energy on 25th October, 2021. The intent is to promote merchant green power plants and provide additional sale avenues to existing renewable power plants that are either facing payment risk with the distribution companies (DISCOM) under the existing PPA or have surplus energy. Expected Benefits from the introduction of GDAM are deepening the Green Market, Accelerating the addition of Renewable Capacity, Shift from PPA based Contract to Market-Based Models and Reduction of Curtailment of Green Power. In the Green Day Ahead market launched in October 2021 about 211 MU have been traded from 27.10.2021 to 07.12.2021 at average Price Rs.4.52 per unit.

• Govt. has introduced Pan India Real Time Market (RTM) of electricity on 3rd June 2020. The introduction of RTMas an organized platform for energy trade closer to real time to the buyers and sellers has not only facilitated grid integration of renewables but also brought greater market efficiency. With RTM, Buyers/sellers have the option of placing buy/sell bids for each 15-minute time block. RTM is benefitting all stakeholders viz. generators including renewable generators having opportunity to sell their surpluses, better management of variability of renewable generation, better utilization of transmission systems, opportunity for distribution utilities to buy or sell power closer to real time and finally consumer getting reliable power supply.In FY 2020-21, the total cleared volume in Real Time Market was 9467.96MU. In FY 2021-22, the total cleared volume in Real Time Market was 9933.4 MU till September, 2021. The highest daily volume of 98.334 MU was traded on 28thAugust, 2021.

• Despite the Covid 19 pandemic,All India demand continued to achieve the new benchmarks. The highest All India demand of 200570 MW was achieved on 07th July 2021.

3.   Integrated Power Development Scheme (IPDS)

Government of India notified “Integrated Power Development Scheme" (IPDS) in December’14 to extend financial assistance against capital expenditure to address the gaps in sub transmission and distribution network and metering in urban areas to supplement the resources of Discoms/ Power Departments.

The scheme has an outlay of Rs. 32,612 crore including a budgetary support of Rs 25,354 crore from Government of India during the entire implementation period.

Progress (From 01.11.2020  to 31.10.2021)

• Total funds invested under the IPDS by GOI + States in this period: around Rs.  3800Cr. with around Rs. 2,290 Cr released as GOI grant from MOP
• System strengthening of sub-transmission and distribution network has been completed in over 70 circles covering over 500 towns inspite of COVID Pandemic and addition of following infrastructure:
  • • • 45 new Power Sub-Stations commissioned;
      • Capacity augmentation of more than 50 exiting Power Sub-Stations completed
      • More than 7,000 ckm of Aerial Bunched/Underground cables laid to reduce losses
      • About 3,000 new Distribution Transformers charged for improving power supply in towns
      • Around 1MwP of Solar Panels installed on Govt buildings and Substations as contribution towards green energy

• • • Gas Insulated Switchgear (GIS) Substations commissioned for first time in NE States, Haryana; works completed in 25 Substations of AP, Assam, Bihar, Haryana, Rajasthan & Uttarakhand
    • Major projects completed–Underground cabling work under IPDS in Varanasi andKumbh Area, Haridwar
    • Rs.240 Cr approved for around 1000ckm of Underground cabling in Ayodhya
    • Over 5Lakh Smart Meters installed in Andaman Nicobar Islands, Bihar, HP, MP, Punjab& Rajasthan etc.
    • IT enablement of smaller towns completed in 6Discoms&Enterprise Resource Planning (ERP) for improvement in Operational Efficiencies of Discoms completed/upgraded in 5 Discoms during this period.
    • Overall IPDS has contributed in increase in hours of Power supply in urban areas to 22 hours/day and improved consumer convenience though Digital payments etc.

Further, Revamped Reforms Based and Results Linked Distribution Sector Scheme has been approved by Ministry of Power in July 2021 with an outlay of Rs. 3,03,758 crore over a period of five years from FY 2021-22 to FY 2025-26 for providing conditional financial assistance for supporting DISCOMs to undertake reforms and improve performance in a time bound manner with following objectives

• • • Improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector
    • Reduce the AT&C losses to pan-India levels of 12-15% by 2024-25
    • Reduce ACS-ARR gap to zero by 2024-25

4.    Hydro Power Development:

• • Guidelines for providing Budgetary support for Flood Moderation / Storage Hydro Electric Power projects and Cost of Enabling Infrastructure i.e. roads and bridges were issued by the Ministry on 28.09.2021 to promote the Hydro Sector.

• • All the 04 units of Kameng Hydro Power Project (600 MW) constructed by NEEPCO in Arunachal Pradesh have been fully commissioned and have commenced their operation from 12.02.2021.

• • Luhri Stage-I HEP (210 MW): Investment Approval accorded by GoI on 20.11.2020. Award of EPC package for Civil and HM works awarded on 24.11.2020 and EM works awarded on 16.07.2021.

• • Dhaulasidh HEP (66 MW): Investment Approval accorded by GoI on 01.10.2020. Award of EPC package for Civil and HM works awarded on 06.05.2021.

• • The Model Contract Document for Dispute Avoidance Mechanism in Hydro CPSUs through "Independent Engineer" has been issued vide O.M. dated 27.09.2021.

• • Kholongchhu (600 MW) Hydro Electric Project in Bhutan

The Concession Agreement for the project was signed between Royal Government of Bhutan (RGoB) and Kholongchhu Hydro Energy Limited (KHEL) [Joint Venture (JV) Company of SJVN Ltd (Indian CPSU) & DGPC Bhutan (RGoB PSU)] at Bhutan in the presence of Hon’ble Minister of External Affairs, GoI and Hon’ble Foreign Minister, RGoB on 29.06.2020.  All three main Civil works packages have been awarded on 04.03.2021 & the project is scheduled to be commissioned by Feb., 2026.

• • Lower Arun Hydro Electric Project (679 MW) in Nepal

Lower Arun project was allotted to SJVN Ltd by Government of Nepal (GoN) on Build Own Operate and Transfer (BOOT) basis through international competitive bidding on 04.02.2021.  MoU has been signed for the development of 679 MW Lower Arun HEP between SJVN Ltd and Investment Board Nepal (IBN) on 11th July 2021. 

• • Investment approval for 850 MW Ratle Hydro Electric Project has been accorded on 11.02.2021 with an estimated project cost of Rs. 5281.94 crore (November 2018 PL). The project is scheduled to be completed within 60 months from the date of investment approval.

• • Investment approval for 120 MW Rangit-IV Hydroelectric Project has been accorded on 30.03.2021 with an estimated project cost of Rs.938.29 crore (October 2019 PL). The project is scheduled to be completed within 60 months from the date of investment approval.

5. Thermal Power:

• Revised/New Coal Stocking Norms in Coal Based Thermal Power Plants

Central Electricity Authority (CEA), monitors the coal stocks being maintained at the power stations along with their daily coal consumption requirements. The earlier coal stocking norms were advisory in nature, at times; power plants do not maintain coal stock as per the norms, which is not desirable for a sustained plant operation. In view of this, the existing coal stocking norms have been revised and issued by Central Electricity Authority (CEA) on 06.12.2021 to ensure more fuel security to the power plants, reflect true picture of the stocks being maintained at each power stations and ensure sufficient coal stock even during the period of less supply by CIL/SCCL during the month of July to September.

The revised norms mandates 12 to 17 days of coal stock at pit head stations and 20 to 26 days coal stock at non-pit head stations with month-wise variation based on coal despatch/coal consumption pattern during the year corresponding to 85% PLF, and prescribes the coal stocks to be mandatorily maintained by the power plants and penalty mechanism for not maintaining the stocking norms. The coal stock for 17 days at pit head plants and 26 days stocks at non-pit head power plants have been made mandatory during February to June every year.

The power plants are graded as red, yellow and green for not maintaining the coal stocks; and would be penalized for not maintaining their normative availability due to reduced coal stocks and their fixed charges shall be reduced in a graded manner.

• National Mission on use of Biomass in coal based power plants:

Ministry of Power on 17th November, 2017 issued Policy on biomass utilization for power generation through co-firing in coal based power plants. In this earlier Policy, it was advised in the policy that coal based thermal power plants, except those having ball and tube mill, of power generation utilities, to endeavor to use 5-10% blend of biomass pellets made, primarily, of agro residue along with coal after assessing the technical feasibility, viz. safety aspect etc.   In order to support the energy transition in the country and to achieve the target of cleaner energy sources, the policy has been modified and issued on 08.10.2021. This modified policy would provide the necessary direction in achieving the desired goals.

• Fuel Linkages under SHAKTI:

Govt. of India, Ministry of Coal had approved a new coal linkage allocation policy on May 17, 2017 named SHAKTI (Scheme for Harnessing & Allocating Koyala Transparently in India). Linkages granted under SHAKTI Policy in the last one year:

Shakti Policy Para B (ii) -  Linkage on auction basis for Independent Power Producers (lPPs) with PPA based on domestic coal. Under clause B(ii) of the SHAKTI Policy, the lPPs participating in auction bid for discount on existing tariff.

• • 4th round auction got completed on 28.09.2021 by PFCCL wherein 3.1983 MT (G11 Grade) was provisionally allocated.

Shakti Policy Para B(viii)(a) – Linkage on auction basis for non-PPA capacity for Short Term & DAM: Ministry of Power issued a methodology in this regard on 02.12.2019 to carry out such auction at every quarter to cater to the dynamic requirements of short term and day-ahead markets (DAM). Amendment to the methodology was issued on 12.05.2020.

• • Till date 5.39 MTs (G13 grade equivalent) of coal have been allocated to various power plants in auctions held for six quarters viz. Apr-June’20, July-Sep’20 and Oct-Dec’20, Jan-Mar’21, Apl-June’21 and July-Sep’21.

    Pilot project for procurement of 2500 MW power:

In order to address the problem of lack of Power Purchase Agreements (PPAs) in the country, the Ministry of Power had notified a scheme for procurement of 2500 MW on competitive basis for a period of 3 years from the generators with commissioned projects having untied capacity.

2nd Round (2500 MW):

• • 21 Bidders (Generating Companies) submitted their Technical and Financial Bid. Financial Bids were opened on 07.02.2020. After e-Reverse Auction Rs 3.26/kWh (Fixed Charge of Rs 1.63 per unit and Variable Charge of Rs 1.63 per unit) tariff was discovered.
  • As per Status report provided by PTC on 10.11.2021, PTC have executed PPAs with the Bidders to whom PFCCL have issued LOAs and PSAs with Utilities/Discoms for a total quantum of 820 MW.

• Stressed Assets in Thermal Power Sector

Department of Financial Services (DFS) sent a list of stressed projects in the power sector on 22.03.17 to Ministry of Power (MoP). The 34 non-captive coal based power projects mentioned in the DFS list are mostly private and have a total installed capacity of 40,130 MW. Status of 34 thermal power projects of capacity 40,130 MW which are under stress as reported by DFS is as follows:

• 1. 17 projects with a total capacity of 20,290 MW have been resolved.
  2. 7 projects with a total capacity of 9,310 MW are at various stages of resolution.
  3. 10 projects with a total capacity of 10,530 MW are at very initial stage of construction and are totally stalled. Such projects have either been ordered to be liquidated or heading towards liquidation.

6. Highlights under Energy Efficiency :

• Energy Efficiency Initiatives Launched under the Bharat ka Azadi Ka Amrit Mahotsav

• • With an objective to accelerate Energy Transition in Industrial Sectors, Union Minister of Power released “User Manuals” for different stakeholders of PAT scheme such as BEE, CERC, POSOCO etc. through Video Conferencing on 1st March, 2021.

• • The detailed outcome of PAT Cycle-II including energy savings, investment reported, technology up gradation as well as reduction in CO2 emission was documented by BEE as “Pathways for Accelerated Transformation in Industry Sector” and was released on 1st March 2021 by the Union Minister.

• • Under the vision for ‘Aatmanirbhar Bharat’ Union Minister of Power launched “Energy Efficiency Enterprise (E3) Certifications Programme for Brick manufacturing Sector” in March, 2021 .

• • “Aiming for Sustainable Habitat: New Initiatives in Building Energy Efficiency 2021”Union Minister of Power announced various initiatives being taken by Government of India towards energy efficiency in the building sector on 16th July, 2021. The initiatives launched included:

• • Specifying code compliance approaches and minimum energy performance requirements for building services, and verification framework with Eco Niwas Samhita 2021.
  • The web-based platform ‘The Handbook of Replicable Designs for Energy Efficient Residential Buildings’ as a learning tool, which can be used to create a pool of ready-to-use resources of replicable designs to construct energy-efficient homes in India.
  • Creating an Online Directory of Building Materials that would envisage the process of establishing Standards for energy efficient building materials.
  • Announcement of NEERMAN Awards, (National Energy Efficiency Roadmap for Movement towards Affordable & Natural Habitat), with the goal of encouraging exceptionally efficient building designs complying with BEE’s Energy Conservation Building Codes.
  • Online Star Rating tool for Energy Efficient Homes created to improve energy-efficiency and reduce energy consumption in individual homes. It provides performance analysis to help professionals decide the best options to pick for energy-efficiency of their homes.
  • Training of over 15,000 Architects, Engineers and Government officials on Energy Conservation Building Code (ECBC) 2017 and Eco Niwas Samhita (ENS) 2021).

• Energy Efficiency in Industry Sector:

• • PAT cycle –II ended on 31st March 2019 wherein 621 Designated Consumers (DCs) from 11 sectors have achieved total energy savings of about 14.08Million tonnes of Oil Equivalent (MTOE) translating into avoiding of about 66 million tonnes of Carbon dioxide. These savings exceeded the notified target by about 18%.The energy saving of PAT Cycle II have been converted to Energy Saving Certificates (ESCerts) tradable at the Power Exchanges. Under the second cycle of PAT, a total of 57.38 lacs ESCerts to 349 industrial units have been issued and 193 industrial units are entitled to purchase 36.68 lacs ESCerts.

• • PAT Cycle –VII has been notified commencing from 2022-23 to 2024-2025 wherein 509 Designated Consumers from 9 sectors have been notified with total energy consumption reduction target of 6.627 MTOE.

• Energy Efficiency in SME
• • 600 Small Scale Projects have been implemented in 5 Sectors (Ceramics, Dairy, Foundry, Hand Tools, Brass) leading to savingsof about 11452 toe of energy, mitigating 61515 Tonne of CO2 emission, attracted investment of 88 Crs so far. The project is currently in scale-up phase in 23 Clusters.

• Energy Efficiency in Appliance Sector:

• • 28 appliances in labelling programme.10 Mandatory appliances and 18 Voluntary Appliances.

• • Voluntary star labelling program for UHD TV and Air Compressor launched on 11th January, 2021.

• • Amendment Notification of Tubular Fluorescent Lamps (TFL), LED, Storage Water Heater, Room Air Conditioners, ColorTV  and Refrigerators (FFR and DFR) notified.
• • Existing energy consumption standards for Chillers, Washing Machines, Microwave Ovens has been extended by a period of 1 year starting from 1st January, 2022 to 31st December, 2022.

• Energy Efficiency in Building Sector:

• • 20 States and Uts namely, Rajasthan, Odisha, Uttarakhand, Punjab, Karnataka, Haryana, Himachal Pradesh, Kerala, Andhra Pradesh, Telangana, Tripura, West Bengal, Uttar Pradesh, Arunachal Pradesh, Sikkim, Assam, Mizoram, Madhya Pradesh and Union Territories (Uts) of Andaman & Nicobar and Puducherry have notified ECBC for their states.

• • Energy Conservation Building Code (ECBC) Cells of BEE, housed at State Designated Agencies (SDAs), are supporting implementation of ECBC at State level. As on 31s October, 2021, 48 ULBs from 8 States have incorporated provisions of ECBC for building approval process.

• • As on 31st October,2021, 264 buildings have been awarded star rating under various categories.

• Energy Efficiency in Transport Sector:

• • Hon’ble Minister for Road Transport & Highways and Union Minister of Power, launched the “Go Electric” Campaign on 19th February, 2021 to spread awareness on the benefits of e-mobility and EV Charging Infrastructure in India. The launch witnessed the unveiling of “Go Electric” logo which depicts the evolution of e-mobility eco-system.

• • BEE conducted 9 stakeholder consultationwith EV stakeholders to address the challenges faced by implementing agencies in deployment of charging infrastructure.

• • Under the Go- Electric Campaign, State Nodal Agencies / State Designated Agencies have conducted 15 roadshows, 35 webinars and various other awareness activities radio jingles, EV Carnival, hoardings, pamphlets advertisements on electricity bills in multiple states across the country.

• Strenghthening Energy accounting in DISCOMs:
• • Amendment in exiting Notification: Ministry of Power issued a notification to include all the Electricity Distribution Companies (DISCOMs) under the preview of EC Act. As per the notification (S.O. 3445(E) dated 28th September, 2020), which was formulated in consultation with BEE “All entities have been issued distribution license by State/Joint Electricity Regulatory Commission under the Electricity Act, 2003 (36 of 2003)” are notified as Designated Consumers (DCs). Earlier, the DISCOMs whose annual energy losses were equal to or above 1000 MU were only covered as Designated Consumers.
• • Regulation under EC Act notified by BEE on 6th Oct, 2021 to mandate Energy Accounting by DISCOMs.

• State Designated Agencies
• • State-wise Actions on Annual targets and Headways on Energy Efficiency (SAATHEE) Portal Launched on 11th January, 2021. It is an interactive web portal for SDAs and will be helpful in capturing physical and financial progress of energy efficiency activities being implemented by States/ Uts across the country.
• • Union Minister for Power chaired a virtual meeting on 22nd October, 2021 with senior officials from State Governments and industry partners to review the current level of activities in the field of energy efficiency and clean energy transition being implemented by State Agencies.   During the meeting, the following reports were released as given below:

• • • State Energy Efficiency Index – 2020 – The report of State Energy Efficiency Index – 2020 to help the states in monitoring their programmes by contributing for National Climate Action Goals
• • eBook on Best Operating Practices by SDAs –The e-book on best energy efficiency practices of State Designated Agencies to facilitate the coordination of peer groups and adoption of best practices by other states.

7. Initiatives for strengthening  Transmission infrastructure

• Formation of Central Transmission Utility of lndia Ltd (CTUIL): Central Transmission Utility of lndia Ltd (CTUIL), a 100o/o subsidiary of Power Grid Corporation of lndia Ltd, has been notified as the Central Transmission Utility under Section 38 of the Electricity Act 2003 on 9th March 2021 and CTUIL has started functioning w.e.f. 1st April 2021. In due course it will be fully independent and 100% Government owned company.
  • Monetisation of Transmission Assets of Power Grid Corporation of lndia (PGCIL) through lnfrastructure lnvestment Trust (lnvlT)

Based on approval of the CCEA conveyed by MoP vide order 15.09.2020, PGCIL monetised five TBCB projects through POWERGRID lnfrastructure lnvestment Trust (PGlnvlT) in May’21. This is the 1’t lnvlT sponsored by a CPSE and largest public offer by any lnvlT/RelT. PGCIL received Rs.7,735 crore. As per National Monetisation Plan issued by NlTl Aayog, POWERGRID is targeted for carrying out monetisation of Rs. 45,200 crore of assets during FY 2021-22 lo FY 2024-25 (including Rs. 7735 crore already raised during FY 2021-22).

Rules/Policies adopted for robust transmission infrastructure 

1. MoP Letter dated 06-08-2021 regarding Revised Guidelines and SBDs for procurement of ISTS through TBCB process along with Standard Bidding Documents (SBDs) issued on 06.08.2021 includes Standard Single Stage Request for Proposal for Selection of TSP through TBCB process to establish ISTS projects and Standard Transmission Service Agreement for Development and Operation of ISTS System for Transmission of Electricity through TBCB Route

• • Ministry of Power, in August 2021, has released the revised the Standard Bid Documents (SBDs), containing Request for Proposal (RfP) and Transmission Service Agreement (TSA) for award of Inter-State Transmission System (ISTS) Projects on TBCB. Last SBDs were issued in 2008. Similarly, Ministry of Power had earlier notified “Tariff Based Competitive Bidding (TBCB) Guidelines for Transmission Service” and “Guidelines for Encouraging Competition in Development of Transmission Projects” in April 2006. These Guidelines were also revised and notified in August 2021.

2. MoP Resolution on Guidelines on Encouraging Competition in Development of Transmission Projects and on TBCB Guidelines as published in Gazette of India on dated 10th Aug 2021

• • Based on extensive stakeholders’ consultation, revised SBDs for award of ISTS systems on TBCB and revised Guidelines have been prepared.   Revised SBD and revised Guidelines would promote ease of doing business for private developers in transmission sector, address concerns of developers on risk sharing, encourage competition in transmission, and facilitate timely completion of transmission lines. All these provisions would bring in more private investment in transmission sector.

3) Electricity (Transmission Planning, Development and Recovery of ISTS Transmission Charges) Rules, 2021 issued on 01.10.2021

• • The Central Government has promulgated the above Rules  paving the way for complete overhauling of transmission system planning to give power sector utilities easier access to electricity transmission network across the country. The rules underpin a system of transmission access which is termed as a General Network Access in the inter-state transmission system.  This providesz flexibility to the States as well as the generating stations to acquire, hold and transfer transmission capacity as per their requirements. Thus, the rules will bring in rationality, responsibility and fairness in the process of transmission planning as well as its costs. 

4) MoP order dated 20.10.2021 for dissolution of 5 Regional Power Committees (Transmission Planning)

• • Prior to this order, regional consultation for planning of ISTS system is done at Regional Power Committee (Transmission Planning) [RPC-TP] and Regional Power Committee [RPC]. In order to fast-track the ISTS planning process, it was agreed to have regional consultation on planning of ISTS system only with RPC and to dissolve RPC-TP. Accordingly, the order will facilitate doing away with dual consultation with regional constituents during ISTS planning process.

5) MoP advisory to all states dated 1.9.2021, along with the Report, for bringing 33 kV system under Transmission for performance improvement of sub-transmission system

• • Ministry of Power had constituted a Committee under the Chairmanship of CMD, POWERGRID, with representatives from Central Electricity Authority, State Transmission Utilities of Haryana, Maharashtra and Odisha and Central Transmission Utility of India Ltd to suggest measures for reduction of losses in the sub-transmission system & for ensuring reliability and efficient performance and to make recommendation for promoting investment in sub-transmission system. The Committee had observed high losses and outage rate at 33 kV level compared to higher voltage level.

Accordingly, to improve the performance of 33 kV system, Ministry of Power has issued advisory to State/Uts on 01.09.2021 to take following actions:

i)33 kV system should be the handed over from DISCOMs to the STU for better planning, loss reduction and increased supply reliability. It can be done in phased manner. In the first phase, incremental assets in 33 kV network and existing overloaded assets/assets can be handed over to STUs.

ii)State Govt. would need to provide financial assistance to STU for upgrading/modernizing their 33 kV assets.

iii)In the event, the State Govt. is not in a position to provide financial assistance to STU, then STU can be asked to form JV with POWERGRID on 50:50 equity basis for mobilising their financial resources.

6) MoP order for Re-constitution of the “National Committee on Transmission” (NCT)

• • As a part of energy transition goal, India has set a target of 500 GW of Renewable Energy capacity by 2030. In view of shorter gestation period required for construction of Renewable Energy Sources compared to that of transmission system, the transmission planning and approval process has been revamped by Ministry of Power to reduce the time taken for planning and approval of transmission system required for evacuation of power from Renewable Energy sources especially.

In order to simplify the process of Inter State Transmission System (ISTS) planning and approval to further facilitate RE development in the country in consonance with energy transition goal, Terms of reference of National Committee on Transmission (NCT) have been modified on 28.10.2021 with delegation of powers to CTU and NCT among others to fast-track ISTS meant for RE.

7) MoP Letter to State & Uts on Report of Task Force on Cyclone Resilient Robust Electricity Trans & Distribution Infrastructure in the Coastal Areas along with Report of Task Force  on Cyclone Resilient Robust Electricity Transmission & Distribution Infrastructure in Coastal Area

• • On the basis of representation received from State, a Task Force was constituted by this Ministry, vide order dated 02.06.2020 to recommend preventive and mitigation measures for minimizing the damages to transmission and distribution infrastructures due to Cyclone in coastal areas of the country.

The task force suggested a multi-pronged approach, which encompasses the change in design philosophy, better planning and adoption of modern technological solutions required to safeguard the T&D infrastructure 

from natural disasters and to increase resilience, reliability and availability of the system. 

After acceptance of the Report by the Ministry, the Report was shared with coastal States and UTs vide MoP’s letter dated 10 June 2021 with a request that each Coastal States/Uts may mark out areas prone to cyclones within 20-30 kms of Coast line and any new construction / reconstruction of Power systems in these areas will follow the design parameters laid down in this report.

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MV/IG