Question : POWER GENERATION



(a) whether the condition of power sector is hopeless as reported in the Hindustan, dated November 19, 2005;

(b) if so, the facts thereof;

(c) the reasons for the decline in the power sector; and

(d) the concrete steps taken and the reforms undertaken by the Government in this regard?

Answer given by the minister


THE MINISTER OF INFORMATION & BROADCASTING AND MINISTER OF PARLIAMENTARY AFFAIRS(SHRI PRIYA RANJAN DASMUNSI)

(a) : No, Sir.

(b) & (c) : Electricity generation in the country grew by 5.2% in year 2004-05 as compared to the previous year.

The Plant Load Factor (PLF) of Thermal Power Plants has shown a steady improvement over the years. The PLF of Thermal Power Plant during the financial year 2004-2005 rose to 74.8% from 69.9% at the end of 9th Five Year Plan.
It is anticipated that during the 10th Five Year Plan a capacity of 34024 MW (82% of the target) will be added which is substantially higher than the capacity addition of 19015 MW (47.5% of the target) during the 9th Plan.
The trend of increasing commercial losses of Power Utilities has been arrested after 2001-02. The commercial losses (without subsidy) in State Power Utilities had increased from Rs.4,560 crores during 1992-93 to Rs.25,259 crores during 2000-01. According to data compiled by Power Finance Corporation, the losses of Utilities have reduced from Rs.27,068 crores in 2001-02 to Rs.20,623 crores in 2003-04.
(d) : The Government has launched following major initiatives to overcome the problems of the power sector and to make it competitive and viable:
i) Accelerating capacity addition to eliminate shortages.
ii) Completing electrification of rural areas through the Rajiv Gandhi Grameen Vidyutikaran Yojana.
iii) Accelerated Power Development and Reform Programme (APDRP) for assisting States in investment in distribution network for reducing technical losses and improving the quality of supply and also for incentivising reduction of cash losses through cash grants.
iv) Emphasis on metering of feeders and supply to consumers for energy accounting and auditing for identifying location of high losses. Stringent legal provisions relating to theft of electricity.
v) Implementation of energy conservation measures. Bureau of Energy Efficiency has been set up under the Energy Conservation Act.
vi) Partnership for excellence programme for improving operation and maintenance practices and renovation and modernization for improving Plant Load Factor (PLF) for poorly performing thermal power stations in the Country.