The document discusses India's power transmission sector and plans for investment. Key points: - Total fund requirement for transmission in the 12th Plan (2016-17) is estimated at USD 42 billion. - Total outlay for transmission in the 12th Plan is estimated at Rs. 2.4 trillion. - Main challenges include high transmission losses, fuel shortages, and energy deficit. - Plans are outlined to strengthen transmission infrastructure through increasing lines, substations, and inter-regional capacity during the 11th and 12th Plans.

1. Power Transmission Sector

2. • Under Investment in T&D Sector .
• The present investment in Generation and T &D Sector is 1 : 0.5 as against
the desired ratio of 1:1.
• The Estimated total fund requirement for transmission by 12th Plan i.e.
2016-17 has been assessed as USD 42 Billion.
• 100% FDI permitted in Generation, Transmission & Distribution - the
Government is keen to draw private investment into the sector.
• Total outlay for transmission sector in the XII Plan is estimated at Rs.2.4
trillion.
• Total Fund requirement for transmission system development and related
schemes as estimated at the beginning of XI plan was Rs 1,40,000
Crore(Central Sector- Rs 75,000 Crore, and State Sector- Rs 65,000 Crore)
Transmission Scenario

3. Main Problems in the Sector
• Subsidized power and low productivity
• Leakages in Power sector and theft
• Average transmission, distribution and
consumer-level losses exceeding 30%
• Shortages of fuel
• Poor grid infrastructure
• Customer awareness towards power efficiency
• Energy deficit of 8.5% - 9.8% in 2010-11.
Expected that the energy deficit to 10-13%
resp. in 2011-12
• Average per capita consumption of electricity
in India is only 478 kWh while the World
average is 2,300 kWh

4. Obstacles to Progress
• Industrial Sickness
• Lack of Infrastructure
• Improper Location Base
• Lack of Capital
• Shortage of Industrial Raw Material
• High cost of production and low
quality products
• License Policy
• Outdated equipment's
• Low level of generation
• Transmission network -losses
approximately 33 %

5. INVESTMENT IN TRANSMISSION LINES
Sr.
No.
Name of the Transmission line
Length
(CKM)
GoI /
BoD
Appl.
Cost
(Appd.)/
Ant.
Expenses Cumml
Exp.
Completion
Target
B.E. (12-
13)
upto
(Mar'12)
Ant./ Act.
1
Supplementary Transmission System
Associated with DVC & Maithon Right Bank
Project
3000 Aug'08 2360.95 53.40 1916.4 Dec'12
2
North East/Northern Western
Interconnector -I Proj.
5066 Feb'09
11130.1
9
1100.4 4502.5 Sep'14
3
Transmission System Associated with
Mundra Ultra Mega Power Project.
3695 Oct'08 4824.12 641.90 2687.70 Sep'13
4
Western Region Strengthening Scheme - II
(Balance)
741 Jul'06 5221.23 22.60 3123.6 Dec'12
5
Transmission System Associated with
Mundra Ultra Mega Power Project.
29635 Oct'08 4824.12 641.90 2687.70 Sep'13
6
Transmission System for Development of
Pooling Station in Northern region Part of
West Bengal and Transfer of Power from
BHUTAN to NR/WR.
29635 Apr'10 4404.57 214.10 254.5 Jan'15

6. Sl.No Name of the Sub -Station
MVA
Ratio
GoI / BoD
Approval
Completed
Target.
Anticipated/
Actual
1
Common Scheme for 765KV Pooling Station and Network
Associated with DVC & Maithon RB Project etc and Inport
by NR & WR via ER
22500 Aug'08 Mar'13
2 North East / Northern Western Interconnector -I Project 1135 Feb'09 Sep'14
3
Transmission System of Vindhyachal-IV and Rihand -III
(1000MW each) Gen. Proj.
6000 Mar'10 Mar'13
Other major project by private companies
• 4000 MW power(440KV line) from country's eastern grid to western region by the Reliance
Infrastructure Limited (R-Infra), between Solapur and Kolhapur in Maharashtra.
• The 220 km long transmission line (Western Regional System Strengthening (WRSS)).
Power Transfer Capacity (MW)

7. Haryana Vidyut Prasaran Nigam
Limited (HVPNL)
Mahatransco
GETCO, DG
VCL
MP Transco
Ltd
AP
Transco
UPPTCL
WBSETCL
KPTCL
Rajasthan Rajya Vidyut Prasaran
Nigam Limited (RVPN)
Major Players

8. • Central Transmission Utility - Maharatna PSU.
• World's Leading Power Transmission Utility.
• The 11th five year plan investment of Rs. 55000 Crores
• Interregional power transfer capacity to be increased to 37,700
MW by 2012 under Phase-III of National Grid Programme.
• Plans to Increase total Transmission lines by over 45% between
FY’08-12 (by adding 29,907cKm).
• Carries about 50% of Generated Power Across Country with
Transmission System as on 31 August 2012, comprising
– 95,846 Ckt. kms Transmission line.
– 157 EHVAC/HVDC Substations.
– 1,44,303 MVA Transformation Capacity.
– 28,000 MW(Approx) Inter-regional Power Transfer Capacity.
Power Grid

9. Companies Maha Transco KPTCL GETCO MP Transco
New Substations
in 2012
71 42 140 107
5 Year Capex 10456 8921 14681 12321
New Projects • Gangapur
• Nigade
• Chakan
• Bhusawal
• Vasai
• Hubli
• Mysore
• Bangalore- rural
• Vadodara
• Kheda
• Mehsana
• Kalavad
• Vidisha
• Bina
• Sendhwa
State Transmission Investment

10. Private Sector Initiatives
• 18,177 MW is
expected to be
added by
IPPs/MPPs being
developed by
Private Sector
during the 11th
plan.
• Private
developers like
ESSAR,JAYPEE &
Adani are
setting up
interstate
transmission
lines by directly
inviting bids.

11. 11th & 12th Plan - Transmission Lines Targets
Ratings Unit 11th Plan 12th Plan
765 Kv cKm 5428 8000
500HVDC cKm 5206 4500
400KV cKm 49278 51000
220KV cKm 35371 50000
Total cKm 95283 113500
1200 KV UHVAC Super Grid
Planned in 12th Plan

12. Policies

13. Low Per-Capita Consumption (Encouraging policy measures)
The Electricity Act, 2003
 Removed the need for
license for generation
projects.
 encouraged competition
through international
competitive bidding
 Identified transmission as a
separate activity
 invited a wider public and
private sector participation
among other things
Other Reforms
 Unbundling of SEBs
 Tax benefits,
 Accelerated Power
Development and
 Reform Program (APDRP)
for distribution,
 Permission for trading of
power, etc.
The National Tariff Policy
was notified in 2005, which
mandated that, “All future
procurement of power by the
distribution utilities and all
future investments in inter-
state power transmission
would be through
competitive bidding route
from January, 2011.”
Introduction of Electricity Act
2003 for:
Competition
private sector involvement
focus on green

14. Sources of fund
• Asian Development Bank (ADB)
• World Bank
– International Finance Corporation (IFC)
– International Bank for Reconstruction & Development (IBRD)
– Multilateral Investment Guarantee Agency (MIGA)
• India Infrastructure Finance Corporation Ltd. (IIFCL)
• Power Finance Corporation
– Consortium Lending Group
– Business Development Associates
– Equity financing
• Commercial Banks
• Private Equity funds
• Private Investor
• Domestic Bond market
• Domestic term lending institutes

15. Fund Requirement for 11th & 12th Plan
• Total Fund requirement at the beginning of XI plan - Rs 1,40,000 Crore
– Central Sector - Rs 75,000 Crore
– State Sector- Rs 65,000 Crore
• Total utilization during XI Plan is anticipated to be - Rs. 1,22,800 Crore.
• 242 Cr of investments came from the private sector which were not a part of earlier
planning.
• For 12th Plan, total fund requirement for development of transmission system is
estimated to be - Rs 1,80,000 crore
– Central Sector - Rs 1,00,000 Cr
– State Sector - Rs. 55,000 Cr
– Private Sector - Rs. 25,000 Cr
Column1 2007-08 2008-09 2009-10 2010-11 2011-12 Total
Centre 6,772 8,282 10,872 13,167 17,277 56,370
State 7,773 9,459 10,823 16,908 21,416 66,379
Total 14,616 17,912 21,695 30,075 38,693 1,22,991

16. Returns and Benefit Analysis
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2012 2011 2010 2009 2008
Kalpataru
PowerGrid
KPTCL
WBPTC
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2012 2011 2010 2009 2008
Kalpataru
PowerGrid
WBPTC
KPTCL
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2012
2011
2010
2009
2008
ROE
Net Profit CapEX
ROCE

17. Conclusion & Recommendations
• Identification of high power density Corridors
• Smart Grids activation across country
• Recommended use of Optical Fiber transmission and lesser physical structure
• Grants for setting up transmission system for evacuation of power from renewable energy
source.
• It is proposed that viability gap funding may be provided on case to case basis for building
intra-State transmission system for renewable generation and conventional hydro stations.
• Land occupied by the transmission tower would have zero resale
value, therefore, compensation should be the full value at prevailing market rate.
• To reduce the requirement of land for constructing substation use of Gas Insulated
Substations (GIS) which requires about 30 % land compared to conventional substation is
being increasingly adopted in metro, hilly and other urban areas.
• 12th Five Year Plan:
(i) 1,09,000 circuit kilometers(ckm) of transmission lines,
(ii) 2,70,000 MVA of AC transformation capacity
(iii) 3,000 MW of HVDC systems are estimated to be added.