Republic of India is a Neighbour of China Most Populous Countries. It is No.2. China is No. 1. It...
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![Page 1: Republic of India is a Neighbour of China Most Populous Countries. It is No.2. China is No. 1. It has unique history of Political stability and a Socialistic.](https://reader035.fdocuments.us/reader035/viewer/2022062717/56649e4a5503460f94b3e142/html5/thumbnails/1.jpg)
Republic of India is a Neighbour of China
• Most Populous Countries. It is No.2. China is No. 1.
• It has unique history of Political stability and a Socialistic Pattern of Government which has continued for 47 years.
• The Country was very poor when Independence came.
• Today it has Commendable Achievements in different fields.
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It has several Overcome them. We mention here.
• GDP Low Rate of Growth
• Food Crisis
• Foreign Exchange Crisis
• Emerging Energy Crisis
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GDP PriceASCI Presentation
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Food CrisisASCI Presentation
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Foreign ExchangeASCI Presentation
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Energy Situation
• Major sources of Energy are:
• Coal – Growth Rate How it has achieved ?
• Oil – Growth Rate – How it has achieved?
• Gas Growth Rate – How it has achieved ?
• Electricity Growth Rate – How it has achieved ?
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Public Sector Strategy
• Public Sector to begin with consolidating the small things into bigger ones.
• When Public Sector will established, allow local Private Sector to compete.
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• Prices Regulations Gradually Removed.
• Current Problems – How it is proposed to be solved ?
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Introducing Competition in Power Sector
• Open Access Allowed.
• All transmission lines operated by Central Government and State Governments.
• Any Consumer or Utility can use transmission facility of anyone else, subject to availability of capacity.
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• He should pay a Wheeling Charge as fixed by concerned regulation.
• If the purchaser is not a utility, he should pay a surcharge equals marginal cost of procurement plus wheeling charge plus average T&D loss reduced from the tariff.
• Surcharge should be faced out _____ with the gross subsidy.
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Policy Framework for the New Policy
• New capacity can be put up by central PSU, State PSUs, State utilities, private sector based power purchase agreement with the utility.
• Private sector units as merchant plants to supply bulk means.
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Methodology and Principles of Tariff Determination are
specified by CERC for CPSUs• Government shall with the advice of
Regulatory Commissions specify the process of bidding.
• All procurement should be on the basis of bidding usually bidding item is cost of supply of power fixed cost plus variable cost. Variable cost is a pass through.
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Why Open Access ?
• It will enhance supply auction and introduce competition will open up markets and will help purchaser to sell to consumers outside the distribution area.
• It will support trading market.
• Should lead to optimal resource exploitation.
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Why Surcharge ?
• Normally Incharge should be allowed.• In India all utilities and the regulators charged the
HT industrial consumers much more than poorer consumers like Households, Agriculture, Cottage Industries etc.
• The element of excess is called Gross Subsidy.• This gross subsidy will have to be determined.
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Coal Sector Modernization
• India Third largest producer of coal 400 mt/yr. China 1st – 2000 mt/yr. USA 2nd 100 mt/yr.
• Deposits are: 8.6 % of the world, China 12 %, USA 25 %.• Mining Coal began in India in 1774 for steam trains.
• On date independence around 50 mt/year from over 3000 mines, mostly private.
• 1971-73, all coal mines were nationalised and consolidated.
• From 1975, coal for railways got reduced to near zero today. But coal for power generation increased.
Modernization Efforts So far
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Coal Sector 3/3
• Only two major public sector Coal India Limited (CIL) and Singareni Colliery Company Limited. (SCCL)
• Production in 2003-04 is around 400 tonnes
• Projected demand in 2029-30 in 1242 (Low Coal Scenario) 1812 (High Coal Scenario).
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OIL SECTOR1/4
• In Pre-independence days oil was extracted very small quantities in Assam by British owned oil companies.
• In 1955, Oil & Natural Gas Commission was established by Legislative sanction.
• With mainly USSR assistance oil exploration was done on shore and off-shore.
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Oil Sector 2/4
• In early Seventies, Bombay High off-shore discovery increased crude production to over 30 mt/yr.
• From 1990, India adopted a liberalised economic policy & private companies were given exploration and development leases under NELP.
• Production of oil has stagnated around 30 mt/yr.• Production of Gas has increased as shown in table.
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Oil Sector 3/4
• Oil production were imported and marketed by private oil companies, Burma Shell, Caltex etc.
• Indian Oil Company was established in 1959, to import crude and refine it to products. This has expanded its capacity to about 55 million tonnes throughput
• Private oil companies were nationalized I 1976 but continued as separate companies to provide a competitive market.
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Oil Sector 4/4
• Private agencies can establish refineries and the one fully private refinery is the largest single unit refinery with 20 million tonnes throughput.