core sector communique

Parliamentary Consultative Committee on Heavy Industries & Public Enterprises meets to Discuss the Power Sector

The Parliamentary Consultative Committee attached to the Ministry of Heavy Industries and Public Enterprises met here today with “Power Sector” in its agenda. The meeting was chaired by Shri Praful Patel, the Minister for Heavy Industries & Public Enterprises.

The members were informed about the performance and future plans of the four major Public Sector Enterprises(PSEs) in the power sector in India – National Thermal Power Corporation(NTPC), National Hydroelectric Power Corporation(NHPC), Nuclear Power Corporation of India Ltd.(NPCL) & Power Grid Corporation of India Ltd.

NTPC, a Maharatna PSE, is the number one independent power producer in Asia, tenth largest power generator in the world and the third largest in Asia. According to FORBES ranking – 2011, NTPC is the 348th largest company in the world. It is globally ranked as number one as far as capacity utilization is concerned. NTPC’s MOU rating by the Department of Public Sector Enterprise(DPE) in 2010-11 is likely to be ‘Excellent’ based on its various performance parameters. In this period, its Gross Generation was targeted at 2,19,000 and Actual were 2,20,536 million units; Gross Margin was targeted at Rs. 13,449.81 crore while the Actual was Rs. 15,464.5 crore; Gross Sales were targeted at Rs. 45,199.47 crore while actual were Rs. 54,622.33 crore; Added Value likely to touch Rs. 9,308.52 crore as against the target of Rs. 6,854 crore. NTPC has also bettered its target in the rest of its parameters in the period 2010-11. Amongst its new initiatives, NTPC is undertaking Bulk Tendering of 660/800 MW Super Critical Units; foraying into renewable and nuclear energy; undertaking several strategic diversification initiatives with experts in power equipment manufacturing; emphasizing on environmental and social sustainability, technology development; and increasing its global opportunities, specifically in Bangladesh, Sri Lanka and Bhutan.

NHPC, a Miniratna PSE, with an authorised capital of Rs. 15,000 crore and an investment base of over Rs. 41,579 crore, is a premier organisation in the country for development of hydropower. It has 14 power stations under operation with a capacity of 5295 MW. 10 projects are under construction with a capacity of 4,502 MW. 17 projects are under development with added capacity of 11,286 MW. Thus NHPC is targeting a capacity of 21,083 MW. Based on its performances, NHPC is expected to get a DPE MOU rating of “Very Good”. Its annual power generation in 2010-11 was Rs. 18,604 crores, net worth Rs. 24,584 crores, sales Rs. 4,000 crores, profit before tax 2,878 crore, net profit Rs. 2,167 crore.

NPCIL generates electricity using nuclear energy through 19 nuclear power reactors with installed capacity of 4,560 MW. In addition, NPCIL is also generating electricity from wind mill of installed capacity 10 MW. 3 more nuclear power reactors are under construction with an aggregate installed capacity of 2,220 MW, which are likely to be in operation progressively by 2011. Further, 4 indigenously designed pressurised heavy water reactors of 700 MW unit size have been launched for construction and are slated for commercial operation progressively by 2016. Together, the nuclear power capacity is expected to reach 6780 MW by 2011 and 9580 MW by 2016. The Government has also accorded approval for 5 new greenfield sites for setting up Light Water Reactors of 1000 MW for larger unit sizes. In addition, Government has also approved the expansion of earlier approved sizes in – Kudankulam in Tamil Nadu for 6 x 1000 MW and Jaitapur in Maharashtra for 6 x 1,650 MW. Work has started at these places. The company registered 61 % of capacity utilization in 2009-10, generated 2.6 % of the total electricity production in the country and registered an increase of 18% in total income. The income in 2009-10 was Rs. 4479.35 crore, an increase by Rs. 677.86 crores.

Power Grid, a Navratna PSE, owns and operates a transmission network of 83,400 ckt kilometres of transmission lines and transformation capacity of about 93,400 MVA. It is poised to get excellent rating for 2010-11 from the DPE with its financial parameters of Rs. 9,100 crores turn over, Rs. 2,697 crores profit after tax, net worth of Rs. 21,351 crores, gross fixed assets worth Rs. 50,352 cores. For development of inter-state transmission system, power Grid plans an investment of about Rs. 55,000 crore during the 11th Plan. The Company has made a capital investment of Rs. 37,445 crore during the four years of the 11th Plan. An outlay of 17,700 crore has been planned for implementation of various projects during the current financial year including addition of about 8,400 ckm of transmission lines with transformation capacity addition of about 18,000 MVA.

Members raised a number of issues relating to necessity for achieving self sufficiency in power generation, clean and greener energy, more stress on renewable energy and less on the non-renewable ones, increasing the foot prints of power supply to remote areas of the country etc.

The other Members present in the meeting were Shri Basudeb Acharia, Dr. Bhola Singh, Shri Lalubhai Babubhai Patel, Dr. Mahendrasinh P. Chauhan, Shri Suresh K. Taware, Shri G. Sanjeeva Reddy, Shri R.C. Singh and Shri Natuji H. Thakore.