Madhya Pradesh- Power Sector Snapshot

[shrigopal mishra]

Madhya Pradesh power sector story-I: Hydro power development takes a hit

July 1: While other states are making strenuous attempts to increase their hydel share in the total energy mix, hydro power development has taken a hit in the state of Madhya Pradesh. This was brought out in the recent review meeting convened by the power minister, Piyush Goyal with the Minister of Energy, Madhya Pradesh on June 23, 2014. 8The state is not making any progress on hydro energy front is clearly evident from the fact that only 2,395 MW projects have been developed till date, while only one project -- 400 MW Maheshwar hydro project of Shri Maheshwar Hydro Power Corporation -- is under construction. 8Moreover, the Central Electricity Authority (CEA) has not cleared any hydro project in the state. 8Then again, CEA has returned the DPR for the Madhya Pradesh State Electricity Board's 100 MW Sone project as the developer has failed to furnish basic inputs desired by the authority. 8It was further noted that no hydroelectric scheme is under Survey & Investigation, while no project is currently under CEA examination. 8If the hydro sector in the state continues to stagnate, it will bring down the share of hydro power in the state in the coming years. 8To note, 10 hydro electric schemes with the installed capacity of 2,395 MW are under operation including NHPC's 1,000 MW Indira Sagar and the 520 MW Omkareshwar HEP, MPGCL's 90 MW Bargi project,  the 115 MW Gandhi Sagar, the 160 MW Pench and the 405 MW Ban Sagar Ton-I, II & III projects among others.  (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-II: Maheshwar HEP struggles to come on board

July 1: The only under construction project in the state -- 400 MW Maheshwar hydro project of Shri Maheshwar Hydro Power Corporation -- is also struggling to come on board. Conceived way back in 1998, the Maheshwar hydro project has been unable to see the light of the day till date.  8The project cost has been escalated manifold and the Power Finance Corporation, the lead lender of the project, has refused to provide any further financial assistance, resulting in a financial logjam. 8The developer has now demanded a fresh lending of Rs 800 crore for the cash trapped project which will help in commissioning of three turbines of 40 MW each which are already installed but could not be commissioned due to financial constraints. 8In order to resolve the issue, the project was discussed by the National Manufacturing Competitiveness Council (NMCC) in January 2014, and it was proposed that the promoter should raise additional debt immediately from fresh lenders with the condition that the fresh lenders would get paid back entirely before payments would commence to existing lenders.  8Although NMCC is confident that the injection of funds will result in the commissioning of the first ten units of the project in a few months, the PFC does not have enough confidence on NMCC's plan. Pertinently, PFC has not yet agreed to give priority charge on the cash flows to new lenders till the old lenders are paid back. 8Moreover, PFC has to restructure the existing debt in such a manner that a long term tariff of Rs 5.32 per unit is achieved. 8To note, the project cost has been estimated at Rs 1,200 crore, of which Rs 400 crore would be paid to BHEL for the remaining seven turbines, Rs 200 crore is required for completion of civil works, while Rs 600 crore is on account of R&R works.   (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-III: T&D losses remain higher than national average

July 1: While the power supply position has shown significant improvement in the few years with Madhya Pradesh achieving a zero deficit level in 2013-14, the major bottleneck continues to be the high Transmission & Distribution (T&D) losses which continue to plague the state's power sector. 8Despite a fall over the past few years, the T&D losses continue to be at 34.47% and 31.45% in 2011-12 and 2012-13 respectively, which is higher than the national average of about 27%. 8To note, the T&D losses stood at 41.44% in 2003-04, after which a marginal decline was witnessed till 2006-07 when the losses were at 39.24%. Then again, there was a decline to 35.64% in 2007-08. 8However, there was an increase in T&D losses to approximately 38% in 2008-09 and 2009-10, going down to 37.6% in 2011-12.  (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-IV: 7,306 MW of new capacity to come up in 12th Plan

July 1: In order to improve the power situation in the state, a total of 7,306 MW of projects have been allotted to the state in the 12th Plan. Of these projects, 4,797 MW is proposed to be developed by the private sector, while 809 MW is to be built by the centre and 1,700 MW of state sector projects are likely to come up in the current plan. The website carries here, for reference purposes, the details of the power projects that are expected to be built during the 12th Five Year Plan. The information is carried under the following broad heads: 8Projects 8Type 8Status 8State project location 8Sector 8Installed capacity (MW) 8Benefits shares of state (MW) 8Unit wise commissioning date  (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-V: Powergrid to invest Rs 12,655 crore for transmission system development

July 1: To meet the growing power demand of Madhya Pradesh, Powergrid plans to establish 7 transmission lines in the state at an estimated cost of Rs 12,655 crore. The website carries, for reference purposes, the details of the upcoming transmission lines along with the expected commissioning schedule. The information is provided below: 8Transmission lines associated with of Vindhyachal -IV and Rihand-lll -- March 2015 8Dharamjaygarh-Jabalpur pool 765 kV D/c line for Phase-I Generation Projects in Orissa Part-B -- December 2014 8Gwalior-Jaipur (RVPN) 765 kV 2nd S/c line for Phase-I Generation Projects in Orissa Part-C -- December 2014 8Transmission system associated with Mauda Stage-II generation project -- May 2016 8Moser Baer TPS (Annupur) - Jabalpur pooling station 400kV D/C (Triple) -- July 2014  (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-VI: NTPC a major player in the state; to add 6,060 MW capacity in upcoming years

July 1: The state utility NTPC is playing a major role in developing various projects in the state.  8After developing 4,310 MW of power projects in the state, the power major has proposed to add 6,060 MW of capacity in the coming years. 8Of the proposed capacity addition, 2,100 MW is under construction, including the 500 MW Vindhyachal-V and the 1,600 MW Gadarwara-I projects, and these are expected to be commissioned by August 2015 and early 13th Plan respectively. 8This apart, 3,960 MW of projects are under the planning stage. These involve the 1,320 MW Khargone project for which EPC bids were invited on June 7, 2014 in addition to the 2,640 MW Barethi-I project for which the feasibility report has been approved.  (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-VII: MP power management company to clear Rs 652 crore outstanding dues of DVC

July 1: Madhya Pradesh Power Management Company Ltd (MPPMCL) has failed to clear outstanding dues of Damodar Valley Corporation (DVC) ran up against the supply of 500 MW of power. 8With the outstanding dues accumulating to Rs 711 crore in March 2014, DVC had imposed a ban on power supply from March 28, 2014. 8Subsequently, MPPMCL paid an adhoc payment of Rs 100 crore in May and June 2014 and requested DVC to lift the load regulation. On MPPMCL's request, DVC lifted the load regulation on May 30, 2014. 8Moreover, the MPPMCL assured to pay off around Rs 100 crore per month towards liquidation of outstanding dues over and above the current bills in every month. 8The outstanding dues have now been estimated at Rs 652 crore as on May 2014. 8To note, MPPMCL started defaulting on DVC payments since November 2013.   (Click on 'Details' to download the document)   Details

 

Madhya Pradesh power sector story-VIII: Details

July 1: The website carries here, for reference purposes, the details of the issues discussed in the review meeting convened by the Piyush Goyal with the Minister of Energy, Madhya Pradesh on June 23, 2014. The information is carried under the following broad heads: 8An increase in the generation capacity in the state as on May 31, 2014 8Actual power supply position 8Likely benefit to the state subsequent to the capacity addition plans drawn up for completion in 11th & 12th Plan 8Investments made by Powergrid in the transmission system  8Status of hydro power development in the state 8Brief of NTPC's activities in the state 8Issues between Madhya Pradesh Power Management Company Limited and DVC 8Status of implementation of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)  8Status of Restructured Accelerated Power Development and Reforms Programme (R-APDRP) in the state  (Click on 'Details' to download the document)   Details

 

 

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Thanks & Regards,
Shrigopal Mishra
Ph-9999979474