NEED FOR MINI POWER PLANTS

The deficit in the installed capacity as well as the energy availability as discussed above is likely to increase during the coming years unless corrective measures are planned immediately. In view of the above and recognizing the Ion" gestation periods necessary for large thermal / hydel projects, GDI through its resolution decided to permit private sector to establish power projects based on DG units using heavy fuel oils such as HFO, LSHS, etc as primary fuels.
In pursuance of the above policy of GOI Resolution, GOAP had announced a policy frame work vide G.O.Ms.No.l52 dated 29-11-1995 giving permission to private entrepreneurs to set up Mini Power Plants (MPP) based on residual fuels to cater the needs of industrial consumers in the state. The brief highlights of the policy are:
1. The MPPs are permitted to generate, sell power and collect revenue directly from the industrial consumer.
2. Power generated by MPPs will be supplied to its consumers through existing trans­mission network of APTRANSCO.
3. The total contracted maximum demand of the industrial consumers of MPP shall not exceed 1.5 times the net installed plant capacity.
4. Any excess power left with MPP up to 15% of the plant capacity can be purchased by APTRANSCO at higher of, the weighted average price of purchase of power made by APTRANSCO from central generating stations or the uniform variable cost on monthly basis and applicable to that month. The APTRANSCO can also purchase power be­ yond 15% of generation of the company at its option with our conferring pre-emptive right of sale on the company.
5. During schedule and unscheduled outages of the plant, APTRANSCO to extend back-up supply.
6. The energy adjustment between MPP and APTRANSCO shall be bi-monthly.
LVS power Limited was granted permission to set-up Mini Power Plant in Visakhapatnam, Andhra Pradesh and sell power directly to Industrial Consumers.

POWER SCENARIO IN ANDHRA PRADESH

Andhra Pradesh is one of the four states in South India with Hyderabad as its capital city. It is spread over 275.068 Sq. Km. And has a population of over 80.00 million. The state is divided into 23 districts, comprising 264 cities & towns and 26.565 villages. Though the state is predominantly agricultural, large number of cement, paper, fertilizer, electronics, steel, pharmaceutical and chemical units are located in the state. Hyderabad, Tirupathi, Vijayawada and Visakhapatnam are the major industrial centers in the state.

The power sector in AP till recently, akin to that in many other states in India, was and exclusive domain of the state. To manage the power sector, the state created AP State Electricity Board (APSEB) in 1959 as an autonomous body with the responsibility for integrated power development in the state. APSEB was responsible for generation, transmission, distribution and selling of power. Subsequently in line with the reforms in the power sector undertaken by the state government and GOI, APSEB is bifurcated into APGENCO and APTRANSCO to focus on generation, transmission and distribution functions of the utility respectively. Further four regional distributions Companies namely APEPDCL, APCPDCL, APONPDCL and APSDCL were created to strengthen distribution in the state. The State government has also created Andhra Pradesh electricity Regulatory Commission to regulate the tariff and facilitate heal the growth of power sector in the state.
APTRANSCO purchases power from APGENCO, IPPs in the state, cen­tral public sector organizations and also from other neighboring states to meet the power requirements of the entire state through the distribution companies. APTRANSCO also purchases the power from the renewable energy sources like non-conventional fuel based power plants, mini hydro power plants, wind power plants, etc.The total installed power generation capacity in the state as on 31-03-2001 is 7,968.76 MW. The peak demand requirement of the state is about 7,140 MW and average daily energy requirement is about 144 MU.

PUBLIC SECTOR UNDERTAKINGS AND OTHER ORGANISATIONS

Bhakra Beas Management Board :
The Bhakra Beas Management Board manages the facilities created for harness­ing the waters impounded at Bhakra and Pong in addition to those diverted at Pandoh through the BSL Water conductor system. It was also assigned the responsibility of delivering water and power to the beneficiary states in accordance with their entitled shares.

Energy Management Centre :
The Energy Management Centre (EMC), New Delhi was established by the Government of India in April 1989 to act as a centre for information, research, training and international cooperation in the field of energy management.

National Power Training Institute :
The National Power Training Institute (NPTI), Faridabad was setup in 1980 as an autonomous body to function as the national apex body for the human resource devel­opment of India Power Sector.

Central Power Research Institute :
The Central Power Research Institute (CPRI), Bangalore was established in 1960. It was reorganised into an autonomous society under the Ministry of Power in 1978. The institute is managed by a governing body comprising members representing the government, the electrical utilities, the industries and academic institutions, etc.

PUBLIC SECTOR UNDERTAKINGS AND OTHER ORGANISATIONS

Power Finance Corporation Limited :
The Power Finance Corporation Limited (PFC), New Delhi, was incorporated on 16 July 1986 under the Companies Act, 1956 and was declared a public financial institu­tion in August 1990. The main objectives of the Corporation include financing of power generation projects, transmission and distribution works, renovation and modernization of power plants, system improvement and energy conservation schemes, maintenance and repair of capital equipment.

North -Eastern Electric Power Corporation Limited :
The North-Eastern Electric Power Corporation Limited (NEEPCO), Shi Hong was constituted in 1976 under the Companies Act with the objective of harnessing the power potential of the north-eastern region through planned development of power generation projects.



Nathpa Jhakri Power Corporation Limited :
The generation component of the 6x250 MW Nathpa Jhakri Hydro-electric Power Project (NJHPP) was sanctioned in April 1989.

Tchri Hydro Development Corporation Limited :
The Tehri Hydro Development Corporation (THDC) was incorporated on 12 July 1988 as a joint venture of the Government of India.

Damodar Valley Corporation :
The Damodar Valley Corporation (DVC) the fist multipurpose river valley project of the Government of India was set up on 7 July 1948.

PUBLIC SECTOR UNDERTAKINGS AND OTHER ORGANISATIONS

National Thermal Power Corporation :
The National Thermal Power Corporation Limited (NTPC), New Delhi, was set up in 1975 as a Central Sector generating company for the development of thermal power.

National Hydro-Electric Power Corporation;
The National hydro-electric Power Corporation Limited (NHPC) was set up in 1975 to promote the development of hydro-electric power in the central sector in all its aspects including investigation, research, design, construction, operation and maintenance of hydro-electric power stations.

Power Grid corporation of India Limited :
The power Grid Corporation of India Limited (PGCIL) was incorporated as a Government of India enterprise on 23 October 1989 under the Companies Act, 1956 as a limited company. Rural Electrification Corporation Limited.

The Rural Electrification Corporation Limited (REC) was set up in 1969 with the primary objective of providing financial assistance for rural electrification in the country. REC was declared a public financial institution under section 4-A of the Companies Act in 1992.

STATE ELECTRICITY BOARDS:

As on 3 1 March 2000 about 5 1 per cent of the total installed capacity is with the State Electricity Boards (SEBs). Restoration of financial health of SEBs and improve­ment In their operational performance continues to remain the most crucial issue in the power sector. SEBs are required to earn a minimum rate of return (ROR) of three per cent of their net fixed assets in service, after providing for depreciation and interest charges. However, only a few SEBs have ROR of more than three per cent.

CENTRAL ELECTRICITY AUTHORITY

The central Electricity Authority (CEA) is a statutory" organization consti­tuted under section 3(1) of the Electricity (supply) Act, 1948. It was established as a part-time body in 195 1 and made a full-time body in 1975. It is an attached office of the Ministry of Power. The Ministry of Power is assisted by the CEA in all technical, financial and economic matters. CEA is responsible for technical coordination an supervision of programmes and is also entrusted with a number of statutory functions.The CEA is particularly charged with the functions of developing a sound, ad­equate and uniform national power policy, formulate short-term and perspective plans for power development. It coordinates the activities of planning agencies in relation to the control and utilization of national power resources, technical and commercial ap­praisal of power schemes, collection of data, evaluation of financial performance of SEBs, analysis of tariff structure in the power industry, training of personnel and pro­motion of research in power-related matters