(a) the details of the observations made at the recent inter-ministerial
meetings regarding the benefits being extended to Merchant Power Plants
(MPPs) and Captive Power Plants (CPPs); and
(b) the number of such power projects built up or proposes to be build up
along with the power generation capacity of each MPPs and CPPs during the
last three years and the current year?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRI BHARATSINH SOLANKI )
(a) : According to Section 9 of the Indian Electricity Act, 2003, no
sanction/ license for setting up of captive power plant is required. The
government has taken various legislative, policy and administrative measures
to facilitate captive generation and utilization of surplus capacity. The details
are given below:
i) Under the Electricity Act, 2003, captive power plants, including group
captive, have been freely permitted. The Act provides that any
person may construct, maintain or operate a captive generating
plant and dedicated transmission lines. Under the provisions of the
Act, every person, who has constructed a captive generating plant
and maintains and operates such plant, shall have the right to open
access for the purposes of carrying electricity from his captive
generating plant to the destination of his use subject to the
availability of transmission capacity.
ii) National Electricity Policy, notified in February, 2005, emphasizes the
need for bringing surplus capacity available with captive and standby
generating stations in India to the grid continuously or during certain
time periods.
iii) Tariff Policy, notified in January 2006, recognizes that captive
generation is an important means to make competitive power
available and urges the Electricity Regulatory Commission to create
an enabling environment that encourages captive plants to be
connected to the grid.
iv) The Conference of Chief Ministers on Power Sector issues held in
May, 2007, has resolved to facilitate captive power plants to provide
the spare generating capacity to the grid and strive to do away with
restrictive levies, duties and regulations in a time bound manner.
v) The National Electricity Policy, 2006, allows a part of new generating
capacities say 15% to be sold outside long term PPAs to promote
market development. Under the Tariff Policy notified in 2006 and
amended vide resolution dated 31.03.2008, the developers of hydro
projects are allowed, a special incentive by way of merchant sales of
up to a maximum of 40% of the saleable energy.
Ministry of Power has taken the following operational measures to
encourage setting up of Merchant Power Plants :-
(i) Fuel tie-ups are being facilitated for Merchant Power Plants.
(ii) Open access in transmission has been introduced in the Electricity
Act, 2003. In distribution, open access is to be introduced in phases.
For consumers with requirement of more than one Mega Watt open
access is to be mandatorily introduced by January, 2009.
(b) : Information is being compiled and will be laid on the Table of the
House.