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Chapter 12:
POWER

The sources of electric power are large and varied. They are coal, oil, natural gas, atomic fuel and water. Low grade coal is ava liable in plenty, deposits of thorium useful as nuclear fuel occur in large quantities, and only a seventh of the potential water resources available has been harnessed for electricity at the commence. ment of the Fourth Plan. Lignite, natural gas and refinery gas are being utilised for power generation where they are available. Exploration for oil continues. The Atomic Energy Commission will establish a research and a prototype breeder reactor for providing thorium as an economic fissile material for power generation. Generation of low cost power, thermal or hydro, is as important as adequate generation. It is for this reason that large sized thermal power stations are being located near the collieries, washeries and oil refinaries. The effort to produce more and cheaper power is one on which the concerned organisations at the Centre and in the States are continually engaged. The Government has constituted a committee of technical experts to go into the question of effecting economies in the cost of generation, transmission and distribution of electricity. This committee's recommendations are expected to be available in 1970.

12.2. The progress in the generation of electricity has been significant :

Table 1 : Growth of Electricity Generation and Consumption

Average annual growth rate of generating capacity was 12.5 per cent during the Third Plan and 12.6 per cent during the three Annual Plan periods. The growth of installed capacity by type of plant is given below:

Table 2 : Growth of Installed Capacity by Type of Plan

12.3. A. number of schemes of power generation fell behind schedule during the Second and Third Plan periods. As against a target of 6.9 million kW of installed capacity for 1960-61 the actual capacity commissioned was 5.65 million kW. This led to power cuts and a staggering of loads in some regions. The target for the Third Plan was 12.69 million kW of installed capacity. The actual capacity commissioned was 10.17 million kW. The outbreak of hostilities in 1962 and 1965 and other factors delayed the implementation of the projects Power supply at the end of the Third Plan remained unsatisfactory. During the three Annual Plans priority was again accorded for the completion of the projects which were in advanced stages of construction. About 4.12 million kW of generating capacity, nearly equal to the total added during the Third Plan, was installed between 1966 and 1969. This appreciable addition, coupled with a slower rate of growth in demand, has made the power position at the beginning of the Fourth Plan on the whole satisfactory except for marginal shortages in some areas. Arrangements are being made to transmit surplus energy from the adjoining States to the deficit areas. The addition of generating capacity during the Third Plan in each State and during the three Annual Plans is indicated in Annexure I.

12.4. Interconnection between State grid systems enabling inter-State transfer of power, was a significant development during the Third Plan. The Riband power system in Uttar Pradesh was connected with the Bihar DVC-West Bengal grid. The Mysore grid was connected with Tamil Nadu, Andhra Pradesh and Kerala grids,The power supply in the Bihar-DVC-West Bengal region was causing concern in 1961 on account of large increase in demand from certain important industries and breakdowns in certain power plants. Surplus power available from the Riband power station was transmitted to the Bihar-DVC-West Bengal region. Similarly, in order to overcome the power shortage in Andhra Pradesh, Tamil Nadu and Kerala during 1965-66, surplus power from Mysore was made available. Construction of inter-State lines received priority during the three Annual Plans. Inter-State lines between Mysore and Maharashtra as well as between Madhya Pradesh and Maharashtra were established early in 1961. Delhi was able to supply surplus power to Uttar Pradesh and Haryana, and Ksrala commenced bulk supply of surplus power to Tamil Nadu through newly-constructed inter-State lines.

12.5. The Third Plan envisaged that all power stations should be inter-connected to form State, zonal or super-grids so that the generation capacities are pooled and used to the best advantage of the region. For formation of grids, the country has been divided into five regions, each with a Regional Electricity Board. The regions are :

12.6. The progress on transmission schemes is as follows :

Table 3 : Progress of Transmission Schemes (circuit km)

In the Third Plan, the additions made to transmission and distribution were not commensurate with the increase in generation capacity. Over the three Annual Plans, however, (he position has improved to some extent. The transmission systems need appreciable strengthening and improvement during the Fourth Plan period.

12.7. Rural Electrification has received increasing importance. At the end of the Second Plan 25,630 villages had been electrified. By the end of March 1969, the number of electrified villages increased to 71,280. Energisation of irrigation pump sets forms an important programme under rural electrification. By 1968-69 about 10,87,567 pumps were in operation as against about 513,000 sets in 1966 and 192,000 sets in 1961.

12.8. The per capita consumption of electricity was 38 kWh at the end of 1960-61. It increased to 61.4 kWh by the end of the Third Plan and to 79 kWh. at the end of 1968-69. Industry continues to be the largest consumer. There has, however been a significant increase in power consumption by agriculture during the past five years. Category-wise utilisation of electrical energy consumed is given in Annexure II.

Outlays

12.9. The outlay for power in the public sector in the Fourth Plan is Rs. 2447,57 crores. The distribution is as follows :

Table 4 :  Outlay for Power (Rs. crores)

The private sector is expected to provide about Rs. 75 corres, primarily on strengthening of their distribution net work.

12.10. Within the outlay for the continuing generation schemes and new schemes the States would be able to add 6.937 million kW to their installed capacity. Major hydel projects such as Beas (Debar), Yamuna, Ramganga, Ukai, Subernarekha, Sharavatty, Idikhi, Balimela and laige thermal stations at Santaldih, Kothagudem, NasiK, Koradi, Dhuvaran and Ukti, will go iiito operation during the Plan period. Anncxure III gives the list of continuing schemes which are expected to yield benefits during this period. For the new-schemes, art outlay of Rs. 150.24 crores has been provided in the States Pian. These schemes are yet to be identified. With the formation of the regional grids and establishment of central load despatch stations, selection of new generation schemes would be so made as to fit with the load characteristics of the region and generaliy to serve the regional requirements as a whole.

12.11. In the State Plans, a provision of Rs. 645.51 crores has been made for transmission and distribuion programmes in view of the persisting imbalance between generating capacity and the transmission and distribution facilities. Also the States contemplete a programme of energising 12,50,000 irrigation pump sets during the Plan period. As such a large programme is feasible only if it is supported by an equally large programme of transmission and distribution, each State will have to ensure that the necessary transmission and transformation facilities are available. Emphasis has been laid on infer-State and inter-regional lines so that the power system in each region can be operated on an integrated basis. The regional power systems are proposed to be inter-linked to form an All-India grid within the Plan period. For constructing these lines, a provision ofRs. 22 crores is set apart as Cenetrally-sponsored programme. Normally only 220 KV lines are proposed to be included in this programme except in some-areas where 132 KV lines suit the longterm needs. A list of lines which are proposed to be taken up during the Plan period is at Annexure IV. For the operation of regional glids the establishment of central load despatching stations in each region will be nec^sary for which provision has been made.

12.12. Rural Electrification.—Within the States Plan provision of Rs. 285.15 crores for Rural Electrification Programmes, the States would be able to energise about 7,50,000 pump sets. A Rural Electrification Corporation with a Plan outlay of Rs. 150 crores has been set up in the public sector for financing selected rural electrification programmes in the States. This investment would supplement the States' programmes and enable them to energise additional 5,00,000 pump sets. State-wise distribution of the irrigation pump energisation programme is given in Annexure V.

12.13. The Union Territories depend largely on the neighbouring States for supply of power. Schemes in hand in the territories are expected to be completed during the Plan Period and add 0.17 million kW of installed capacity. No new generation schemes are included in their Plans. Out of Rs. 44.27 crores proposed to be invested on transmission and distribution in the Union Territories, about Rs. 29 crores will be for building up transmission and distribution system in Delhi only. 4000 pumpsets are expected to be energised in the Union Territories.

12.14. Centre's Programme.—The provision of Rs. 210 crores in the Central Plan on continuing generation schemes includes Rs. 120 crores on atomic power generation, Rs. 49.25 crores on the Badarpur thermal station, Rs. 38.85 crores on D.V.C. schemes, Rs. 2 crores on the Neyveli thermal station. The first atomic power station at Tarapur of 380 MW capacity has gone into operation in 1969. In the second station at Ranapratap Sagar, the first unit of 200 MW is expected to be commissioned by 1971, and the second unit about two years later. In the third station at Kalpakkam (400 MW), the first unit (200 MW) is expected to go into operation in 1973-74. A provision of Rs. 5 crores has been made in the Plan for advance action on a new atomic power station, the location of which has yet to be decided. The ninth thermal unit of 100 MW at Neyveli has gone into operation during 1969-70 and the station has now a total capacity of 600 MW. The D.V.C. programme includes installation of two thermal sets of 120 MW each at Chandrapura. The Badarpur thermal station of 300 MW installed capacity is expected to have its first unit in operation in 1971-72 and other two units are expected to follow in 1972-73. Three new Central projects Loktak hydro-electric project in Manipur, Baira-Siul hydro-electric project in Himachal Pradesh and Salal hydro-electric project in Jammu and Kashmir are included in the Central Plan. Loktak and Baira-Siul schemes are scheduled to go into operation towards the end of the Plan.

12.15. The Central generating stations would be feeding into their respective regional grids. The establishment of central stations will depend on the beneficiary States agreeing to a minimum offtake of power at optimum load factor order to ensure that central stations will be utilised fully and operated economically; to the establishment of suitable transmission systems and tariff for power sold.

12.16. Out of 9.264 million kW generating capacity being added during the Plan period, plant and equimpent foi about 4.859 million kW of capacity will be supplied by the indigenous public sector manufacturers and the balance would be from foreign sources. Also, about 3.37 million kW capacity plant and equipment would be in various stages of manufacture in these undertakings for supply to spillover State projects. In addition, plant and equipment for new generation schemes which are yet to be identified would be under manufacture in these factories. There is adequate capacity in the country for manufacture of other heavy electrical equipment and no import of such equipment is envisaged in future.

12.17. In Annexure VI, the distribution of Plan outlays for different power programmes and the additional benefits available from the schemes are indicated. On the basis of the outlay for power generation a net installed capacity of 23 nxllion kW can be achieved, allowing for retirement of 0.4 million kW of old and obsolete plant. Out of the 23 million kW capacity, 9.42 million kW will be from hydro, 12.95 million kW from thermal and 0.98 million kW from nuclear stations. The level of utilisation of available capacity is at present low. There is scope for improving efficiency of operation. For maximising utilisation of the available capacity and also for meeting the peak demands on their systems, some of'the States may have to resort to fuller utilisation of stand-by capacities. Integrated ' operation of State grid systems utilising inter-State lines should also be adopted for maximising benefits.

12.18. A number of hydro and thermal schemes will be under construction towards the end of the Plan. On completion during the Fifth Plan, these will provide an additional capacity of about 3.37 million kW. With a provision of about Rs. 200 croies on new generation programmes, additional generating schemes would be included in the Plan tor completion during the Fifth Plan period. Some of the major steam stations particulaily those located or under construction near washeries and collieries, are designed for development in stages. Additional units can be installed at these stations in shorter construction periods during the Fifth Plan.

12.19. Electricity Board Finances.—At present the financial working of most of the Electricity Boards is not satisfactory. The Electricity (Supply) Act requires the State Electricity Boards to review their operations from time to time with a view to becomming self-supporting. In some States, large part of the electricity generated is sold to bulk consumers below the cost of generation. The increase in the cost of materials, lubricants, fuels and wages has further increased the operation and maintenance expenditure of the Boards. A committee on the Working of the State Electricity Boards (Venkataraman Committee) was set up in 1964 for examining the financial working of the Electricity Boards. One of the recommendations made by the Committee was that in the first phase, the Boards should aim at revenues sufficient to cover operational and maintenance charges, contribution to the general and depreciation reserves and interest charges on the capital base. In the second phase, the Boards should aim at an overall return of 11 per cent (interest 6 per cent; general reserve j per cept; electricity duty 1^ per cent and net profit 3 per cent, after meeting the operation, maintenance and depreciation charges. The main endeavour of the Boards should be to build sufficient surpluses for re-investment for further growth by improved efficiency in operation, fuller utilisation of available capacity and rationalising tariffs. It is necessary to ensure that these recommendations are implemented by the State Electricity Boards.

12.20. Other programmes which have been included and for which provision has been made in the Plan are :

1. preliminary survey of hydro power generation sites;
2. research work connected with power generation, tiansmission and distribution;
3. power equipment testing centres;
4. consultancy service for power development;and

5. training of thermal power station operating personnel.

12.21. A country-wide programme for carrying out pie-investment survey of hdyro electric sites is under implementation. New sites will be taken up foi investigation during the Plan period. The Central Board of Irrigation and Power together with Electricity Boards have set up 18 research units since 1961-62. Besides, research on certain problems is being carried out in the University of Roorkee and the Indian Institute of Science, Bangalore. In addition applied research on problems concerned with generation, transmission and disribution is being carried out in the Power Research Institute, Bangalore, and the Switchgear Testing and Development Station at Bhopal. Fault locators, methods of testing, transformer oils and 'hot sticks', developed by the Power Research Institute from indigenous materials have been of use to the State Electricity Boards in the operation of their systems. Provisions has been made for the extension of the Switchgear Testing Centre at Bhopal. An organisation has been set up in Central Water and Power Commission to provide consultancy service;, for authorities incharge of generation projects. The Plan provides for the extension of two training institutes for the operational personnel of thermal stations established at Neyveli and Durgapur.

ANNEXURE I Growth of Installed Capacity— Utilities and Self-generating
Industrial Establishments : 1960-61. 1965-66 und 1968-69 (in megawatts)

'Includes 330 MW of diesel generating capacity. 'Includes 420 MW of diesel generating capacity. 'Includes 500 MW of diesel generating capacity.

ANNEXURE II Pattern of Utilisation of Electrical Energy Consumed   (including Consumption
in Self-generating Industrial Establishments) (in million kwh)

ANNEXURE III Benefits in the Fourth Plan from Generation Schemes included in the Fourth Plan—Public Utilities

ANNEXURE IV List of Inter-State and filter-Regional Links proposed to be included in the Fourth Five Year Plan

ANNEXURE V  Outlay for Rural Electrification and Targets of Energisation of
Additional Pump sets hi the Fourth Five Year Plan

Targets in col. 4 correspond to outlays in col. 6. 'Tentative,

ANNEXURE VI Fourth Five Year Plan—Outlays and Benefits

For hill areas in Assam.; 'Provisional.; 'The installed capacity in 1973-74 of 138.0 MW is for all union territories except Delhi.