Question : Ongoing Power Projects

(a) the details of the ongoing power projects along with the power produced by them within the country including Maharashtra;

(b) the funds sanctioned, allocated and utilized under these projects during the last three years and the current year across the country including Maharashtra;

(c) the details of the cost fixed initially for these projects along with the target set for completing the projects;

(d) whether some of the projects are facing huge cost/time overrun;

(e) if so, the details thereof and the reasons there for along with the action taken by the Government for timely completion of these projects in future without cost overrun; and

(f) the time by which the said projects are likely to be completed?

Answer given by the minister

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI R.K. SINGH)

(a) to (d) : As on 29th February, 2020, the installed generation capacity in the country was about 369 GW, including installed generation capacity of 13,661 MW in the State Sector in Maharashtra. Power generation during the current year (April – February 2020) and the last three years is as under:
Year Electricity Generation at All India Level
(Billion Units) Electricity Generation from State Sector of Maharashtra
(Billion Units)
2016-17 1,241.689 49.921
2017-18 1,308.146 52.415
2018-19 1,376.095 52.029
2019-20
(Upto February) 1,281.264 47.925

………..2.

- 2 -
As per Electricity Act 2003, generation is a de-licensed activity. Investment in setting up of power projects is made by the concerned developers. Therefore, no funds are sanctioned / allocated by the Government of India in this regard, except contribution in equity of the Central Public Sector Units for setting up of such projects on a case-to-case basis. No power is generated by the under construction power projects, the generation of power starts only after completion and commissioning of the power projects.

The details of the under construction Thermal and Hydro Power Projects, along with their original and anticipated cost as well as original and anticipated schedule of commissioning are given in Annexure-I and Annexure-II respectively.

(e) & (f) : Some of the under construction power projects are having time/cost overrun. Major reasons for time overrun in thermal and hydro projects are given as under:

Thermal

• Slow civil works, delay in Balance of Plants equipment/systems,
• Contractual issues,
• Law & order problem,
• Other customer/ project developer(s) issues,
• Delay in handing over the units by BHEL,
• Delay in finalization and subsequent changes in the scope for R&M (Renovation & Modernisation),
• Changes in layout plan,
• Non-availability of spares

Hydro

• Delay in Land Acquisition
• Environment and Forest issues
• Rehabilitation & Resettlement issues
• Natural Calamities
• Law & order problem & Local issues
• Contractual issues
• Geological uncertainties/surprises
• Difficult Terrain & Poor Accessibility
• Funds constraints with developers
• Force Majeure Risk
• Inter-state issues

The major reasons for cost overrun are; increase in interest rate, increase in general price index and changes in the scope of project.

………..3.

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In order to ensure timely completion of the above projects, the following monitoring mechanisms are in place in Government:

(i) Ministry of Power/Central Electricity Authority (CEA) monitors the process of under construction power projects through frequent site visits and interaction with the developers and equipment suppliers. CEA holds review meetings periodically with the developers and other stakeholders and identify issues critical for commissioning of projects and help in resolving them.

(ii) In case of Central Power Sector Undertakings (CPSUs) projects, the project implementation parameters/ milestones are incorporated in the annual MoU signed between respective CPSU''s and MoP and the same are monitored during the quarterly performance review meeting of CPSU''s and other meetings held in MoP/CEA.

(iii) Project Monitoring Group (PMG) under Department for Promotion of Industry and Internal Trade (DPIIT) resolves issues / bottlenecks faced by developers by taking up with Central / State Government authorities.

(iv) Matters are taken up with State Government/District Administration for extending help to the project implementing agencies in resolving Right of Way (ROW) issues.

(v) As and when required, issues are also reviewed in the PRAGATI portal of PMO for proactive governance and timely implementation.


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