REC- 1-51.p65 - Rural Electrification Corporation Ltd.

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