REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
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RURAL ELECTRIFICATION CORPORATION LIMITED<br />
1. INDUSTRY STRUCTURE<br />
MANAGEMENT DISCUSSION AND ANALYSIS REPORT<br />
[Pursuant to Clause 49 (IV) (F) of the Listing Agreement]<br />
During the fiscal 2010 a total of 9585 MW of generation<br />
capacity was added. The country’s power deficit was<br />
marginally lower than that of previous year at 10.1 per cent<br />
of the total demand. The peak power deficit during the fiscal<br />
year was, however, marginally higher than previous year at<br />
12.7% of the peak demand.<br />
So far during the first three years of the 11th five year plan,<br />
the installed generation capacity has grown from 132.33 GW<br />
at the end of fiscal 2007 to 159.4 GW at the end of fiscal<br />
2010 representing an addition of 27068 MW. The target<br />
capacity addition during the 11th plan has been kept at 78700<br />
MW. According to the Report of the Working Group on Power<br />
for Eleventh Plan of the GoI (fiscal 2008 to fiscal 2012), the<br />
overall requirement of funds for the power sector has been<br />
estimated at Rs. 10,316,000 million. For the Twelfth Plan<br />
period, CEA estimates that in order to meet the projected<br />
demand requirement by 2017, capacity addition of 100,000<br />
MW would be required; and including additions required<br />
in expanding transmission and distribution systems, the total<br />
fund requirement for the plan period would be about<br />
Rs. 11,000,000 million.<br />
Generation<br />
The installed generation capacity increased by 9585 MW<br />
during fiscal 2010 with 2180 MW added in the Central sector,<br />
3118 MW added in the State sector and 4287 MW added in<br />
the Private sector. The total installed generation capacity<br />
was 159398 MW at the end of March 2010.<br />
(Units in MW)<br />
Sector Installed Installed Increase in Target<br />
Capacity Capacity Installed Capacity<br />
at the end of as on Capacity Addition<br />
10th Plan 31.10.2010 so far in during<br />
(2007) 11th plan 11th Plan<br />
(2012)<br />
State 70096 79392 9296 26783<br />
Central 45121 50992 5871 36874<br />
Private 17113 29014 11901 15043<br />
Total 132330 159398 27068 78700<br />
*Source CEA report<br />
In addition to the above there is a captive generating capacity<br />
of 19509 MW, connected to the grid.<br />
Transmission<br />
About 15583 ckm of transmission lines were added in the<br />
fiscal 2010 in the country with total length aggregating about<br />
2.36 lakh ckm at the end of fiscal 2010. The installed length<br />
of transmission lines at the end of 10th plan i.e. fiscal 2007<br />
was about 1.98 lakh ckt kms. The substation transformation<br />
capacity at 400 kV and 220 kV level aggregated 3.06 lakh<br />
MVA excluding 4500 MVA of 765kV transformation capacity,<br />
at the end of fiscal 2010.<br />
Investments for transmission system development and<br />
related schemes during the Eleventh Plan period is estimated<br />
at Rs. 1,400,000 million, with Rs. 750,000 million being<br />
required for the central sector and Rs. 650,000 million being<br />
required for the state sector. Further, CEA estimates that in<br />
the 12 th plan the funds requirement for transmission sector<br />
would be about Rs. 2,400,000 million, with Rs. 1,400,000<br />
million being required for the central sector and Rs. 1,000,000<br />
million being required for the state sector.<br />
The focus of transmission system development is to provide<br />
adequate inter-regional and intra-regional transmission<br />
capacity so as to consolidate and strengthen the national<br />
grid network towards a strong all-India grid. GoI’s<br />
transmission perspective plans focus on the creation of a<br />
national grid in a phased manner by adding over 60,000 ckm<br />
of transmission network by 2012.<br />
Distribution<br />
ANNEXURE-I<br />
The total fund requirement for sub-transmission and<br />
distribution system development for urban and rural areas,<br />
during the eleventh Plan period is estimated at Rs. 2,870,000<br />
million inclusive of APDRP and RGGVY schemes. Further,<br />
CEA estimates that for the 12 th five year plan period, the<br />
total fund requirement for the Distribution sector, would be<br />
about Rs.3,710,000 million.<br />
The R-APDRP scheme (Restructured APDRP) seeks to<br />
address the issue of limited resources with the SEBs and<br />
State Public Utilities and their resultant inability to upgrade<br />
the distribution network. R-APDRP focuses on actual,<br />
demonstrable performance in terms of sustained loss<br />
reduction and proposes to cover urban areas - towns and<br />
cities with population of more than 30,000 (10,000 in case<br />
of special category states). In addition, in certain high-load<br />
density rural areas with significant loads, works of separation<br />
of agricultural feeders from domestic and industrial ones,<br />
and of High Voltage Distribution System (11kV) will also be<br />
taken up. The Part-A of R-APDRP aims at preparation of<br />
Base-line data for the project area covering Consumer<br />
Indexing, GIS Mapping, Metering of Distribution<br />
Transformers and Feeders, and Automatic Data Logging for<br />
all Distribution Transformers and Feeders and SCADA / DMS<br />
system etc. Part-B aims at renovation, modernization and<br />
strengthening of 11 kV level Substations, Transformers/<br />
Transformer Centers, Re-conductoring of lines at 11kV level<br />
and below and upgradation of the entire last mile distribution<br />
infrastructure.<br />
GoI provides 100% Loan for part-A of the R-APDRP schemes<br />
and upto 25% (90% for special category States) Loan for<br />
part-B of the R-APDRP schemes for which funds would be<br />
channelized through PFC / <strong>REC</strong>. The entire amount of GoI<br />
loan for part-A of the project is converted into grant after<br />
establishment of the required base-line data system within<br />
a stipulated time frame and duly verified by third party<br />
inspection agencies. Part-B loans to the extent of 50% (90%<br />
for special category States) are converted into grant in five<br />
equal tranches on achieving 15% AT&C loss in the project<br />
area duly verified by third party inspection agencies, on a<br />
sustainable basis for a period of five years.<br />
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