The document provides an overview of power generation, transmission, distribution, and rural electrification in India. Some key points: - Power generation increased 8.43% in 2014-15, led by growth in thermal generation. - Transmission is managed by Power Grid Corporation of India, which owns over 1,13,587 circuit km of lines and aims to invest Rs. 100,000 crore during the 12th plan. - Distribution remains the responsibility of state governments, and the government provides assistance through schemes like IPDS and DDUGJY to improve rural and urban distribution networks. - Rural electrification status and funding mechanisms under the DDUGJY scheme are outlined.

1. Power Scenario and approach in India
1.Generation-Overview
The Overall generation in the country has been increased from 967.150 BU
during 2013-14 to 1048.673 BU during the year 2014-15. The Category wise
generation performance as follows:-
Thermal Increased by 10.83 %
Hydro Reduced by 4.16 %
Nuclear Increased by 5.47 %
Bhutan Import Reduced by 10.54 %
Overall Growth rate recorded by 8.43 %
The annual growth in power generation during recent years is as under:
Year Growth in Achievement(%)
2008-09 2.7
2009-10 6.6
2010-11 5.56
2011-12 8.11
2012-13 4.01
2013-14 6.04
2014-15 8.43
2.Transmission-Overview
Power Grid Corporation of India Limited (POWERGRID, the 'Central Transmison Utility
(CTU)' of the country and a 'Navratna' Company operating under Ministry of Power, is
engaged in power transmission business with the responsibility for planning,
implementation, operation and maintenance of inter-State transmission system and
operation of National & Regional Power Grids. POWERGRID is a listed Company, with
57.90% holding of Government of India and balance by Institutional Investors & public.
POWERGRID has been implementing various transmission projects for generation
capacity addition under central sector, Ultra Mega Power Projects (UMPPs),
Independent Power Producers (IPPs) and other projects. As on December 31, 2014,
the Company owns & operates transmission network of about 1,13,587 ckm of
transmission lines and 188 nos. of EHVAC & HVDC substations with
transformation capacity of about 2,19,579 MVA. The Company continues to wheel
about 50% of total power generated in the Country through its transmission network at
an availability of over 99% consistently.
The company exhibited an impressive financial performance during FY 2013-14,
earning a net profit of Rs. 4,497 Crore with Turnover of Rs. 15,721 Crore and Gross
Asset Base of Rs. 96,504 Crore.

2. Power System Operation Corporation Limited (POSOCO), a 100% subsidiary of the
Company, has been successfully managing the National and Regional Grids through
deployment of latest technology. Company’s strong transmission network and
modernised RLDCs have facilitated about 78.38 billion units (BUs) of inter-regional
energy transfer across the Country during FY 2013-14 through execution of Short Term
Open Access (STOA).
Integration of Renewable Energy Resources with conventional sources is a top priority
worldwide and special attention is being given in our country to harness the Green
Energy. CERC has provided a framework for trading in Green Certificates (Renewable
Energy Certificates or RECs) and National Load Despatch Centre (NDLC) of POSOCO
has been designated as the Central agency for this purpose.
Nationwide synchronous power grid, interconnecting all the five regional grids, has been
established with the commissioning of 765kV S/c Raichur – Sholapur line on December
31, 2013. As on December 31, 2014, National Grid with inter-regional power transfer
capacity of about 46,450 MW has been established. The inter-regional power transfer
capacity is envisaged to be augmented to about 72,250MW by the end of the XII Plan
(2016-17).
11 nos. of High Capacity Power Transmission Corridors (HCPTCs) have been finalized
to meet bulk power evacuation requirement of various Independent Power Producers
(IPPs) mainly coming up in resource rich and coastal States such as Chhattisgarh,
Odisha, Madhya Pradesh, Sikkim, Jharkhand, Tamil Nadu and Andhra Pradesh at an
estimated cost of about Rs. 75,000 Crore (POWERGRID's scope: about Rs. 66,000
Crore). Implementation of these corridors has been taken up in a phased manner
matching with generation projects.
An investment of about Rs. 1,00,000 Crore has been envisaged by the Company for
further development of inter-State transmission systems during XII Plan which includes
development of High Capacity Power Transmission Corridors (HCPTCs) apart from
inter-regional links for enhancement of National Grid capacity & various system
strengthening schemes. This will be used for augmenting the transmission system by
about 40,000 ckm of transmission lines and about 1,00,000MVA of transformation
capacity.
On the advice of Forum of Regulators (FOR)/ Central Electricity Regulatory Commission
(CERC) and Ministry of New & Renewable Energy (MNRE), POWERGRID has evolved
transmission infrastructure requirement for integration of large scale envisaged
renewable capacity in 12th Plan into the Grid at an estimated cost of about Rs. 43,000
Crore. Towards this, a report titled "Green Energy Corridors" has been released on
September 14, 2012. Implementation of these corridors has also been initiated.
Conserving Right-of-Way (RoW), minimizing impact on natural resources, coordinated
development of cost effective transmission corridor, flexibility in upgradation of transfer
capacity of lines matching with power transfer requirement are major areas of concern
in development of transmission network in the country. In this direction, the Company is
now working on higher transmission voltages of ±800kV HVDC & 1200kV 1200kV
UHVAC. About 2,000km long -+800kV, 6000 MW HVDC Bi-pole connecting Biswanath
Chariali in Assam to Agra in Uttar Pradesh is under implementation, and shall be

3. amongst the longest such lines in the world. Similarly, highest voltage level in the world,
1200 kV UHVAC Single Circuit (S/c) and Double Circuit (D/c) test lines were
successfully test charged along with one 1200 kV Bay at 1200kV UHVAC National Test
Station at Bina, Madhya Pradesh and field tests are currently undergoing.
To shore up its revenue and create value for its stakeholders, POWERGRID diversified
into telecom business and is managing a pan-India Broad Band Telecom Network of
about 30,000 kms providing back-bone connectivity to all metros, major cities & towns
including remote areas of J&K & North-eastern States etc. The Company is one of the
three agencies selected by Govt. of India for providing connectvity for the prestigious
'National Knowledge Network' project which aims to connect all knowledge centers
across the country such as IITs, IISc, etc. on high speed connectivity. POWERGRID
has been nominated as one of the implementing agencies for this project and has been
entrusted with the task of development and maintenance of the NOFN network in five
states, namely Andhra Pradesh (Partial), Telangana, Himachal Pradesh, Jharkhand and
Odisha.
Further, POWERGRID is playing a significant role in carrying forward the distribution
reforms through undertaking RGGVY works on behalf of the Govt. of India in various
parts of the country.
POWERGRID has emerged as a strong player in South Asia and is playing an active
role in formation of a strong SAARC grid for effective utilization of resources for mutual
benefits. Presently, various electrical interconnections exist between India & Bhutan,
India & Nepal and India & Bangladesh. Further, the interconnection between India &
Bhutan and India & Nepal are being strengthened for substantial exchange of power
across the borders. Also, feasibility study for an under-sea interconnection between
India and Sri Lanka is under finalization and 500MW Amritsar (India) - Lahore
(Pakistan) HVDC link between India and Pakistan is under discussion. In addition,
POWERGRID is offering consultancy services to various National clients & International
clients, including many South Asian, African, and Middle East countries.
POWERGRID has taken leadership initiative for development of Smart Grid technology
in the country integrating all segments in power supply chain. In Distribution system,
POWERGRID jointly with Govt. of Puducherry has developed a Consumer-utility
interactive Pilot Smart Grid/ City project in Puducherry through open collaboration with
more than 70 nos. organizations & academic institutions. The project is under
implementation and interim Smart Grid Control Centre at Puducherry has already been
established with provision of Advanced Metering Infrastructure (AMI) solution and other
functionalities like Outage Management System, Demand Response, Microgrid etc. are
being taken up in a progressive manner. A number of such Smart Cities have been
planned for other cities in the country.
In Smart transmission, POWERGRID has also implemented Synchrophasor Technology
in its Wide Area Measurement System (WAMS) Pilot Project through installation of
PMUs (Phasor Measurement Units) at different locations in all 5 Regions across the
country, which facilitates better visualization and situational awareness of the grid
events such as grid robustness, oscillations, angle/ voltage instability, system margin
etc. as well as decision support tools. POWERGRID also acts as 'nodal point' in

4. prestigious "India Smart Grid Task Force" Secretariat for Government's activities related
to Smart Grid.
3.Distribution-Overview
Distribution is the most important link in the entire power sector value chain. As the only
interface between utilities and consumers, it is the cash register for the entire sector.
Under the Indian Constitution, power is a Concurrent subject and the responsibility for
distribution and supply of power to rural and urban consumers rests with the states.
Government of India provides assistance to states through various Central Sector /
centrally sponsored schemes for improving the distribution sector.
Integrated Power Development Scheme (IPDS)
Scheme approved on 20.11.2014 with a total outlay of Rs 32,612 crore which includes a
budgetary support of Rs 25,354 crore from Govt. of India. The objectives of scheme are:
 Strengthening of sub-transmission and distribution networks in the urban areas;
 Metering of distribution transformers / feeders / consumers in the urban area.
 IT enablement of distribution sector and strengthening of distribution network
The component of IT enablement of distribution sector and strengthening of distribution
network approved in June, 2013 in the form of RAPDRP for 12th and 13th Plans got
subsumed in this scheme and approved scheme outlay of Rs 44,011 crore including a
budgetary support of Rs 22,727 crore carried over to the new scheme of IPDS.
Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
Scheme approved on 20.11.2014 with a total outlay of Rs 44,033 crore which includes a
budgetary support of Rs 33,453 crore from Govt. of India. The objectives of scheme are:
 Separation of agriculture and non-agriculture feeders
 Strengthening of sub-transmission and distribution networks in the rural areas;
 Metering of distribution transformers / feeders / consumers in the rural area.
 Rural Electrification
The component of Rural Electrification approved in August, 2013 in the form of RGGVY
for 12th and 13th Plans got subsumed in this scheme and approved scheme cost of Rs
39275 crore including a budgetary support of Rs 35447crore carried over to the new
scheme of DDUGJY.
National Electricity Fund (NEF)
To promote investment in the distribution sector, GoI has set up National Electricity
Fund (Interest Subsidy Scheme) in March 2012 to provide interest subsidy on loans
disbursed to the Distribution Companies (DISCOMS) – both in public and private sector,
to improve the distribution network for areas not covered by RGGVY and R-APDRP
project areas. The preconditions for eligibility are linked to certain reform measures

5. taken by the States and the amount of interest subsidy is linked to the progress
achieved in reforms linked parameters.
Financial Restructuring Scheme
GoI has notified the scheme for Financial Restructuring of State Distribution Companies
(Discoms) in October 2012 for achieving their financial turnaround by restructuring their
short term liabilities with support through a Transitional Finance Mechanism from
Central Govt.
4.Rural Electrification
Status of Rural Electrification (RE) under DDUGJY
Government of India has launched the scheme “Deendayal Upadhyaya Gram Jyoti
Yojana” for rural electrification. The erstwhile Rajiv Gandhi Grameen Vidyutikaran
Yojana (RGGVY) scheme for village electrification and providing electricity distribution
infrastructure in the rural areas has been subsumed in the DDUGJY scheme. Rural
Electrification Corporation is the Nodal Agency for implementation of DDUGJY.
Under DDUGJY-RE, Ministry of Power has sanctioned 921 projects to electrify 1,21,225
un-electrified villages, intensive electrification of 5,92,979 partially electrified villages
and provide free electricity connections to 397.45 lakh BPL rural households. As on
30th June 2015, works in 1,10,146 un-electrified villages and intensive electrification of
3,20,185 partially electrified villages have been completed and 220.63 lakh free
electricity connections have been released to BPL households.
The funding mechanism of DDUGJY will be as under:
Agency
Nature of
support
Quantum of support
(Percentage of project cost)
Other than
Special
Category States
Special
Category States
#
Govt of India Grant 60 85
Discom Contribution*
Own
Fund
10 5
Lender (FIs/ Banks) Loan 30 10
Additional Grant from
GOI on achievement of
prescribed milestones
Grant
50% of total
loan component
(30%) i.e. 15%
50% of total
loan component
(10%) i.e. 5%
Maximum Grant by GOI
(including additional
grant on achievement of
prescribed milestones)
Grant 75% 90%
# Special Category States (All North Eastern States including Sikkim, J&K, Himachal
Pradesh, Uttarakhand)

6. * Minimum contribution by Discom(s) is 10% (5% in case of Special Category States).
However, Discom(s) contribution can go up to 40% (15% in case of Spec
5.Energy Efficiency
The primary energy demand in India has grown from about 450 million tons of oil
equivalent (toe) in 2000 to about 770 million toe in 2012. This is expected to increase to
about 1250 (estimated by International Energy Agency) to 1500 (estimated in the
Integrated Energy Policy Report) million toe in 2030. This increase is driven by a
number of factors, the most important of which are increasing incomes and economic
growth which lead to greater demand for energy services such as lighting, cooking,
space cooling, mobility, industrial production, office automation, etc. This growth is also
reflective of the current very low level of energy supply in India: the average annual
energy supply in India in 2011 was only 0.6 toe per capita; whereas the global average
was 1.88 toe per capita. It may also be noted that no country in the world has been able
to achieve a Human Development Index of 0.9 or more without an annual energy supply
of at least 4 toe per capita. Consequently, there is a large latent demand for energy
services that needs to be fulfilled in order for people to have reasonable incomes and a
decent quality of life.
Government of India has undertaken a two pronged approach to cater to the energy
demand of its citizens while ensuring minimum growth in CO2 emissions, so that the
global emissions do not lead to an irreversible damage to the earth system. On one
hand, in the generation side, the Government is promoting greater use of renewable in
the energy mix mainly through solar and wind and at the same time shifting towards
supercritical technologies for coal based power plants. On the other side, efforts are
being made to efficiently use the energy in the demand side through various innovative
policy measures under the overall ambit of Energy Conservation Act 2001.
The Energy Conservation Act (EC Act) was enacted in 2001 with the goal of reducing
energy intensity of Indian economy. Bureau of Energy Efficiency (BEE) was set up as
the statutory body on 1st March 2002 at the central level to facilitate the implementation
of the EC Act. The Act provides regulatory mandate for: standards & labeling of
equipment and appliances; energy conservation building codes for commercial
buildings; and energy consumption norms for energy intensive industries. In addition,
the Act enjoins the Central Govt. and the Bureau to take steps to facilitate and promote
energy efficiency in all sectors of the economy. The Act also directs states to designate
agencies for the implementation of the Act and promotion of energy efficiency in the
state. The EC Act was amended in 2010 and the main amendments of the Act are given
below
 The Central Government may issue the energy savings certificate to the
designated consumer whose energy consumption is less than the prescribed
norms and standards in accordance with the procedure as may be prescribed
 The designated consumer whose energy consumption is more than the
prescribed norms and standards shall be entitled to purchase the energy savings
certificate to comply with the prescribed norms and standards

7.  The Central Government may, in consultation with the Bureau, prescribe the
value of per metric ton of oil equivalent of energy consumed
 Commercial buildings which are having a connected load of 100 kW or contract
demand of 120 kVA and above come under the purview of ECBC under EC Act.
Ministry of Power, through Bureau of Energy Efficiency (BEE), has initiated a number of
energy efficiency initiatives in the areas of household lighting, commercial buildings,
standards and labeling of appliances, demand side management in
agriculture/municipalities, SME's and large industries including the initiation of the
process for development of energy consumption norms for industrial sub sectors,
capacity building of SDA's etc. The target of energy savings against these schemes
during the XI plan period was kept 10,000 MW of avoided generation capacity. These
initiatives have resulted in an avoided capacity generation of 10836 MW during the XI
plan period.
SCHEMES TO PROMOTE ENERGY CONSERVATION AND ENERGY EFFICIENCY
(i) Standards and Labeling
The Bureau initiated the Standards and Labeling programme for equipment and
appliances in 2006 to provide the consumer an informed choice about the energy
saving and thereby the cost saving potential of the relevant marketed product. The
scheme is invoked for 19 equipment/appliances, i.e. Room Air Conditioners,
Fluorescent Tube Lights, Frost Free Refrigerators, Distribution Transformers, Induction
Motors, Direct Cool Refrigerator, electric storage type geyser, Ceiling fans, Color TVs,
Agricultural pump sets, LPG stoves, Washing machine, Laptops, ballast, floor standing
ACs, office automation products, Diesel Generating sets & Diesel operating pumpsets
of which the first 4 products have been notified under mandatory labeling from 7th
January, 2010. The other appliances are presently under voluntary labeling phase. The
energy efficiency labeling programs under BEE are intended to reduce the energy
consumption of appliance without diminishing the services it provides to consumers.
Further, the standards and label for refrigerators and air-conditioners have been
periodically made more stringent. As a result, the least-efficient products are removed
from the market and more efficient products are introduced. The Corporate Average
Fuel Consumption Standards (CAFC) for passenger cars has been notified on 30th
January, 2014. The most recent additions to the list of labeled products are Diesel
Pumpsets & Diesel Generating Set.
During the XII plan, Standards and Labelling programme will target at least 3 more new
equipments / appliances including up-gradation of energy performance standards for
equipments/ appliances covered during XI Plan.
(ii) Energy Conservation Building Codes (ECBC)
The Energy Conservation Building Code (ECBC) was developed by Govt. of India for
new commercial buildings on 27th May 2007. ECBC sets minimum energy standards for
new commercial buildings having a connected load of 100kW or contract demand of
120 KVA and above. While the Central Government has powers under the EC Act 2001,
the state governments have the flexibility to modify the code to suit local or regional

8. needs and notify them. Currently eight States and Union Territories (Rajasthan, Odisha,
UT of Puducherry, Uttrakhand, Punjab, Karnataka, Andhra Pradesh & Telangana)
notified and adopted the code for their states. In order to promote a market pull for
energy efficient buildings, Bureau of Energy Efficiency developed a voluntary Star
Rating Programme for buildings which is based on the actual performance of a building,
in terms of energy usage in the building over its area expressed in kWh/sq. m/year.
Currently, Voluntary Star Labelling programme for 4 categories of buildings (day use
office buildings/BPOs/Shopping malls/Hospitals) has been developed and put in public
domain.
(iii) Demand Side Management (DSM) Scheme
(a) Agriculture DSM
In order to tap the energy saving potential, Agriculture Demand Side Management
(AgDSM) program was initiated in XI plan by Bureau of Energy Efficiency with an
objective to induce energy efficiency in agriculture sector by creating market based
framework for implementation of few pilot projects and create awareness among end
users & other stakeholders for adoption of energy efficient pumpsets (EEPS). Major
milestone achievements of the scheme during XI plan were:
 11 Detailed Project Reports (DPRs) have been prepared in 8 states for
11DISCOMs covering 20,750 pumpsets connected on 87 feeders. Average 40%
(96 MU) energy saving potential assessed.
 One pilot project in Solapur, Maharashtra is being implemented and reflects
savings of 6.1 MU by efficiency up gradation of 2209pumpsets.Monitoring &
Verification methodology have been prepared and is under implementation for
realizing energy savings in Solapur pilot project.
 Punjab & Haryana mandated the use of BEE star rated pumpsets for every new
agricultural connection in the state. 67843 and 1599 pumps have been reported
installed under the regulation in the state of Haryana and Punjab respectively.
During the XII plan, realizing the vast energy saving potential in the sector, BEE intends
to continue the programme with an objective to build up the process of acceleration of
sustainable energy efficiency in the plan through following interventions:
 Regulatory mechanism to mandate the use of BEE star labeled pump sets for
new connections
 Facilitate implementation of DPRs and setting up monitoring & verification
protocol
 Technical assistance and capacity development of all stakeholders
(b) Municipal DSM
Identifying the immense energy saving potential in municipal sector, BEE initiated
Municipal Demand Side Management (MuDSM) during XI plan. The basic objective of
the project was to improve the overall energy efficiency of the ULBs, which could lead to
substantial savings in the electricity consumption, thereby resulting in cost

9. reduction/savings for the ULBs. The major achievements in the XI plan period are as
follows.
 Situational survey was conducted in 175 ULBs across the country.
 In 134 ULBs, Bankable DPRs were prepared after taking up Investment Grade
Energy Audit (IGEA). The overall potential saving of 120 MW is estimated as part
of avoided generation capacity through energy efficiency proje`cts in 134 ULBs.
 MuDSM web portal was developed under the programme. The portal consists of
DPRs and knowledge materials developed under the programme.
Implementation of the project at the ground level is highly necessary which will create a
market transformation among technology provider, implementing partners, financial
institutions etc. In view of these facts, it is proposed that implementation of demo
projects in 15 ULBs will be undertaken on pilot basis during XII plan. In addition,
technical support will be provided to the ULBs by appointing technical experts to
selected ULBs.
(c) Capacity Building of DISCOMS
The objective of the programme is capacity building of DISCOMs for carrying out load
management programme, energy conservation programme, development of DSM
action plan and implementation of DSM activities in their respective areas. This
programme would help the DISCOMs for reducing peak electricity demand so that they
can delay building further capacity.
(d) Energy Efficiency in Small and Medium Enterprises (SMEs) sector
To encourage the energy efficient technologies and operational practices in SME
sectors in India, BEE has initiated the energy efficiency interventions in selected 25
SMEs clusters during the XI plan. A study was conducted to assess energy use and
technology gap at unit level, development of the cluster specific energy efficiency
manuals, preparation of Detailed Project Reports (DPRs) on energy efficient
technologies and capacity building and knowledge enhancement of man-force involved
in SMEs. During the XII plan, implementations of 100 technology demonstration projects
in 5 SME sectors are envisaged to facilitate large scale replication.
(iv) Strengthening Institutional Capacity of States
(a) Strengthening of State Designated Agency (SDAs)
As has been mentioned earlier, the implementation and enforcement of the provisions
of the Energy Conservation Act in the states is to be carried out by SDAs. As on date,
the SDAs have been set up in 32 states by designating one of the existing organizations
as required under section 15 (d) of the Energy Conservation Act 2001. These agencies
differ from State to State with the Renewable Energy Development Agency (44%),
Electrical Inspectorate (25%), Distribution Companies (12%), Power Departments (16%)
and others (3%).In order to kick start the energy conservation activities at the state level
with an emphasis on building institutional capacities of the SDAs, Ministry of Power had
approved the scheme of Providing financial assistance to the State Designated

10. Agencies for strengthening their institutional capacities and capabilities during the XI
plan. The major achievements were:
 Internet platform was developed by 26 SDAs.
 47 demonstration projects implemented in street lighting and water pumping
stations.
 LED Village Campaign implemented by 28 States.
 Investment grade energy audit completed in 491 Govt. buildings.
During the XII plan, thrust will be on establishment of the enforcement machinery at the
State level.
(b) Contribution to State Energy Conservation Fund (SECF) Scheme
The State Energy Conservation Fund (SECF)is an instrument to overcome the major
barriers for implementation of energy efficiency projects. The contribution under State
Energy Conservation Fund (SECF) was made to those State Govt. / UT Administration
who have created their SECF and finalized the rules and regulations to operationalise
the same. The scheme was for contribution to all the State/UTs with a maximum ceiling
of Rs. 4.00 crores for any State/UT provided in two instalments of Rs. 2.00 crores each.
The second i
6.Research and Training
Electricity Act,2003 provides that the Central Electricity Authority shall perform such
functions and duties as the Central Government may prescribe or direct, inter-alia, to
promote measures for advancing the skill of persons engaged in the electricity industry
and promote research in matters affecting the generation, transmission, distribution and
training of electricity.
A National Training Policy for the Power Sector has been formulated. The salient
features of the Policy are as under
 All organizations should adopt a formal written training policy to ensure training
for all personnel for a minimum period of one week annually.

11.  A comprehensive training plan should be formulated by each power utility based
on periodic training needs analysis
 A minimum of 1.5% of the salary budget of the organization may be allocated for
training to begin with this should gradually be increased to 5% of the salary
budget
 Networking amongst various organizations under the Ministry and other reputed
institutes should be done for optimal use of training infrastructure and intellectual
resources.
 Induction level training should be made mandatory for transmission & distribution
(T&D) personnel similar to the generation personnel
 Adequate infrastructure for training including hydro power, transmission and
distribution and non-conventional energy should be developed
 Simulator training at suitable intervals should be made mandatory for operation
staff of the power plants
The policy emphasizes the idea that money spent on training is an investment not and
expenditure. The National Training Policy (NTP) also highlights the need for planning for
training as an integrated Human Resource Development (HRD) activity with a
commitment to imparting training for all in the power sector at entry level as well as in-
service.