ENERGY,INFRASTRUCTUREAND COMMUNICATIONS CASE STUDY PRESENTED BY: Bharat Sharma (011) )
INTRODUCTION Through PPP(public-private partnership) private sector laid a solid foundation in infrastructure investment. During the twelfth five year plan, the planning commission projected an investment of 45 lakh crores where 50% will be derived from private sector and 22.5 lakh crore from public. Eleventh plan figures stated as 36% from private,13.1 lakh crore from public.
PERFORMANCE OF SECTORS Growth in power, petroleum refinery, cement, railway freight traffic, passengers handled at domestic terminals, and up gradation of highways by the National Highways Authority of India (NHAI). Negative growth in Coal, natural gas, fertilizers, handling of export cargo at airports, and the number of cell phone connections. Steel sector witnessed moderation in growth.
According to the Ministry of Statistics and Programme Implementation(MOSPI) 583 projects were sanctioned with an amount of 712,812 crores but raised to 821,665 crores. Projects delayed- road transport and highways (90), power(45), petroleum(29), railways(26), coal(17) Cost overrun- railways(181%),petroleum sector (32%),Coal(29%),road transport(61%)
POWER GENERATION• TARGET-5.4% INCREASE• ACHIEVED-9.2%(76% WITHIN 9 MONTHS) - NUCLEAR(33.2%),HYDRO(19.2%), THERM AL(6.7%) PLF(PLANT LOAD FACTOR)-72.1% LOWER THAN PREVIOUS YEAR 72.9%
POWER DEFICIT Peak deficit(13.8 TO 10.6%) Energy deficit(9.6% TO 7.9%) CAPACITY ADDITION Initially evaluated as 78700 MW(Hydro- 19.9%,Thermal-75.8%,Nuclear-4.3%) During mid term appraisal modified hence expected to be 50,000 to 52,000 MW In thermal sector highest capacity addition was achieved of 12207.7 MW
ULTRA MEGA POWER PROJECTS INITIATIVE One unit of 800 MW of the Mundra UMPP is expected to be commissioned in the Eleventh Plan. The remaining units of Mundra, Sasan in Madhya Pradesh,Krishnapatnam in Andhra Pradesh, are expected to be commissioned in the Twelfth PLAN. Tilaiya in Jharkhand-UNKNOWN DEVELOPMENT OF HYDRO POWER CEA revised capacity from 15627 MW to 8237 due to difficult and inaccessible potential sites, difficulties in land acquisition, rehabilitation, environmental and forest related issues, inter-state issues, geological surprises and contractual issues.
INITIATIVES-finalization of an investor-friendly New Hydro Policy 2008, a liberal National Rehabilitation and Resettlement Policy, and a 50,000 MW Hydroelectric Initiative and Mega Power Project Policy.
Transmission, Trading, Access, andExchange NATIONAL GRID Inter-regional energy exchanges of about 39,275 million units (MUs) during April-November 2011, thus contributing to better utilization of generation capacity and an improved power supply position. OPEN ACCESS The facilitative framework created by the Central Electricity Regulatory Commission (CERC) has provided the desired regulatory certainty for developers in terms of market access, and also payment security against default.
Transaction of 52,290 MUs energy has been approved through 17,340 interstate short-term bilateral and collective open access transactions. The Central Transmission Utility (CTU),which is responsible for granting connectivity APPROVED 58 applications for the connectivity of 55,940 MW. TRADING OF ELECTRICITY For short-term contracts, with power price less than RS.3/ kWh, the trading margin is RS.0.04 per unit and for power price above RS.3/kWh, the margin is capped at RS. 0.07 per unit.
AGGREGATE TECHNICAL AND COMMERCIAL(AT&C) LOSSES AND RESTRUCTURED APDRP PART A-projects for establishment of baseline data and IT applications for energy accounting and IT- based consumer service centers. PART B-Regular distribution strengthening projects. NATIONAL ELECTRICITY FUND The Cabinet Committee on Economic Affairs (CCEA) approved the National Electricity Fund (Interest Subsidy Scheme) to provide interest subsidy aggregating to RS 8,466 crore on loan disbursement amounting to RS25,000 crore to the state power utilities - both in the public and private sectors--to improve the distribution network.
RURAL ELECTRIFICATION Under the Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), 1,00,917 villages have been electrified and free electricity connections released to 179.41 lakh below poverty line (BPL) households. 341 projects out of the 343 sanctioned under the Eleventh Plan have been awarded and franchisees are in place in 1, 45,950 villages in 17 states.
PETROLEUM OIL AND GAS PRODUCTION Production of crude oil-38.19 MMT(1.33% increase) Production of domestic crude oil-28.7 MMT(1.9% increase) Rajasthan Cairn Energy India pvt ltd-4.8 MMT Production of natural gas-36.19 BCM The gas production has reportedly decreased due to drop in pressure in the wells and increased water ingress leading to lower output of gas per well.
EXPLORATION OF DOMESTIC OIL AND GAS Under the New Exploration Licensing Policy (NELP) 103 oil and gas discoveries have been made by private/joint venture (JV) companies in 34 blocks and more than 600 MMT of oil equivalent hydrocarbon reserves have been added. DOMESTIC EXPLORATION OF OTHER GASEOUS FUEL CBM-Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh,Maharashtra, Orissa, Rajasthan, Tamil Nadu, and West Bengal. SHALE GAS-sedimentary basins such as Cambay, Gondwana, Krishna-Godawari, and Cauvery
EQUITY OIL AND GAS FROM ABROAD Around 10.5% of domestic production. OVL,OIL, GAIL, IOCL, BPCL & HPCL are involved. The total investment by oil PSUs overseas is more than RS.64,832 crore, which includes two pipeline projects in Sudan and Myanmar.(production fell from 7.06 to 6.76) IMPORT OF LIQUEFIED NATURAL GAS (LNG) Petronet LNG Limited (PLL)-import fell from 8.95 to 8.17 MMT Entered into an MoU with Gazprom Marketing and Trading Singapore Pte. Ltd. For sourcing up to 2.5 MMTPA of LNG Developing-greenfield project of 5.0 MMTPA capacity at Kochi in the State of Kerala, Dahej terminal capacity
REFINING CAPACITY Present 193.39 MMTPA-expected 214.07MMTPA Exported 59.13 MMT of petroleum products worth 1,96,112 crore. PIPELINE NETWORK AND CITY GAS DISTRIBUTION(CGD) NETWORK Substantial increase in the pipelines network in the country with 31 product pipelines of a length of 11,274 km and capacity of 69.19 MMT at present. 588 CNG STATIONS Consumption-14 MMSCMD
RAJIV GANDHI GRAMIN LPG VITARAN YOJANA(RGGLVY) Focuses on raising the population coverage of lpg in rural areas and areas where lpg coverage is low. 5.5 crore connections by 2015
COAL Raw Coal-320 MT to 307 MT Coking coal-28.7 MT to 28.3 MT Environmental restrictions, application of the comprehensive environmental pollution index (CEPI), non-availability of forestry clearance against some of the projects, poor law and order situation in some states and excessive rainfall in the coal-mining areas. Increase in imports-68.9 MT(ICVL is trying acquire coal assets in Australia and Indonesia)
CIL set up 20 new coal washeriies with a capacity of 111.1 MT per annum, investment 2500 crore Sold through E-Aution scheme CIL-avereage price 74% above notified price SCCL-avereage price 113% above notified price Allocation of coal blocks 218 coal blocks allocated under the Coal Mines ACT 1973, presently 195
RAILWAYS Share in GDP-1 to 3%,revenue-10% increase GOALS:(a) laying of 25,000 km of new lines;(b) quadrupling of the 6,000 km network with segregation of passenger and freight lines;(c) electrification of 14,000 km;(d) completion of gauge conversion;(e) up gradation of speed to 160-200kmph for passenger trains; and(f) construction of 2,000 km of high-speed rail lines.
Frieght loading-618 MT High level safety review committee formed which brought down accidents to 141 845 stations selected for development as Adarsh stations with basic facilities. Facilities-largest computerized passenger reservation systems of Indian railways, computerized unreserved ticketing system, automatic ticket vending machines, freight operations information system, real train information system. Multifunctional complex(MFC) with budget hotels-22
Expert Group-strategies for modernization of Railways with focus on track, signalling, rolling stock, stations and terminals up gradation; using ICT for improving efficiency and safety; augmenting existing capacities of Railways through indigenous development; reviewing projects; and addressing PPP issues. Dedicated Freight Corridor (DFC) Project-serve coal and steel traffic are being funded with Japanese assistance and Eastern Corridor with World Bank assistance. Increase in speed of passenger trains 160-200 kmph
Railway electrification-1110 RKM with an outlay 978 crore Establish own captive thermal power plant with NTPC Ministry of Railways formulated PPP investment models for existing and new projects New comprehensive draft policy containing six models for specific categories of projects
ROADS National Highways Development Project(NHDP)-total length-55455,contracts-227 Funds raised through 54 EC bonds and short-term over draft facility, World bank(US $1965million),Asian development bank(US $1605 million), Japan bank for international cooperation(32,060 million yen), direct loan(US$ 149.78 million) from the ADB for the Manor Expressway Project The SARDP-NE aims at improving road connectivity to state capitals, district headquarters and remote places of the north-east region.
Development of NH network Development of roads in Left Wing Extremism (LWE)-affected areas-Road Requirement Plan (RRP) for development of 1,126 km NHs and 4,351 km state roads (total 5,477 km) to two-lane at a cost of 7,300 crore in 34 LWE-affected districts Development 848 km cost 1363 crores Prime Ministers Reconstruction Plan (PMRP) for Jammu and Kashmir-cost incurred 2300 crore Construction of rural roads under the Pradhan Mantri Gram Sadak Yojna(PMGSY)-4.41 lakh km costing 126,937 crore
CIVIL AVIATION Growth of 18.5% with majority in domestic airways(19.4% growth) For improving air navigation services, the Airport Authority of India (AAI) installed the new ATS automation system at Chennai. Government also gave in-principle approval for setting up of a greenfield airport at Karaikal in Puducherry and Shirdi in Maharashtra. Working group was constituted recommended that state governments rationalize the value added tax (VAT) on aviation turbine fuel (ATF), foreign airlines be permitted to invest in domestic airlines undertakings, and direct import of ATF by airlines for their own consumption be allowed.
TELECOMMUNICATION 2nd largest in the world due to liberal policy and involvement of private sector(86% share) Share of wireless telephones 96.4% which let to growth of wire line connections decreasing and reduction in tariffs. Teledensity-76.86%(rural-37.5%,urban-167.4%) Broad band policy-13.3 million subscribers The Universal Service Obligation Fund(USOF) provide subsidy support for enabling access to all types of telephony services including mobile services and broadband connectivity and for creation of infrastructure like optical fiber cables (OFC) in rural and remote areas.
Government has approved a project for a national optical fiber network in October 2011 for providing broadband connectivity to all 2.5 lakh gram panchayats at a cost of 20,000 crore. To promote indigenous R&D and manufacturing to become self-reliant in the telecom/ICT equipment manufacturing sector, various strategies have been proposed in the Draft National Telecom Policy. Proposed to set up a fund for promoting indigenous R&D, intellectual property rights (IPR) creation, manufacturing and deployment of state of-the-art telecom products
PORT Throughput increased by 4.6 % at 12 major ports(majorly at Ennore port-39.5%,least at Chennai-(- 8.2%)) Decrease in cargo handled at non-major ports Commodity-wise Cargo Traffic at Major Ports-thermal coal, fertilizer raw material, containers and other cargo Leading port-JawaharLal Nehru Port Non-major ports helped in controlling the traffic(Gujarat-major,Andhra Pradeh,Maharashtra,Goa)
The objective of the Maritime Agenda is not only creating more capacity but setting up ports on a par with the best international ports in terms of performance(296,000 crores). Investment has to come from the private sector including FDI. FDI up to 100 per cent under the automatic route is permitted for construction and maintenance of ports.
URBAN INFRASTRUCTURE The Jawaharlal Nehru National Urban Renewal Mission has been launched by the Ministry of Urban Development for a seven-year period to encourage cities to initiate steps to bring about improvements in existing civic service levels(budget-6423 crore) Surveillance rating has been initiated to affirm the rating and assess improvements undertaken National Urban Transport Policy ensures safe and affordable mobility for all.
12,309 modern intelligent transport system (ITS)- enabled, low-floor and semi-low-floor buses have been delivered to states/cities. New metro projects-Bangalore metro rail project, East-West metro corridor in Kolkata, Chennai metro rail project, Phase 3 of Delhi metro
FINANCING INFRASTRUCTURE(DEBT) Bank credit 146,767 crores FDI inflows-growth of 23.6% Foreign investment-power(43.6%),non-conventional energy(33.8%),telecommunications(44.9%)