January 11, 2002
' 28'
PRIME MINISTER CALLS ON STATES TO SPEED UP POWER REFORMS
NORTHERN REGION UNIFIED LOAD DESPATCH CENTER INAUGURATED
The Prime Minister, Shri Atal Behari Vajpayee has called on the States to accelerate the pace of electricity reforms. Shri Vajpayee noted that despite ten months having passed since he chaired the meeting of State Chief Ministers and Power Ministers eleven out of 28 States have yet to take the first step of setting up a regulatory commission. The Prime Minister was speaking while inaugurating the Northern Region Unified Load Despatch and Communication (ULDC) System here today. Shri Vajpayee observed that many States have not yet initiated reforms in the power sector. Even where there has been reform, the successor companies of State Electricity Boards (SEBs) in many States have not yet moved fast to implement the agreed reforms, the Prime Minister said. In some States, Shri Vajpayee said these companies are still are not free from political and beauracratic interference, defeating the purpose of reforms.
The Prime Minister said however that despite these teething troubles, there is progress in the last few months. He complimented Orissa, Andhra Pradesh, Uttar Pradesh, Maharashtra, Gujarat, Haryana, Delhi, Karnataka, Rajasthan, Himachal Pradesh and Madhya Pradesh for their State Electricity Regulatory Commissions having independently revised electricity rates. Shri Vajpayee said more public and private investment in the sector would only come through the completion of 100% metering and billing and more efficient collection and energy audit, through which it is expected that transmission and distribution (T&D) losses would go down to realistic levels. He said a concerted effort needs to be made to reduce T&D losses, check electricity theft and ensure tariff rationalization to achieve financial viability for distribution utilities while substantial progress has to be made to overcome the shortcomings.
Shri Vajpayee asked the Power Grid Corporation Of India Limited, a Central Power Utility to take the initiative in structuring transmission projects in association with the private sector so that the massive requirements of the sectors are met and there is a quantum jump in the level of efficiency and viability in India’s power sector. The investment required to increase the generation capacity would be Rs.8 lakh crore.
The Minister of Power, Shri Suresh Prabhu in his remarks said that POWERGRID is playing the key role in establishing a National Grid by strengthening the Regional Grids. Today the Minister noted, it has established a National Grid which can transfer 4850 MW of power across the regions. This capacity is planned to be enhanced to 23000 MW by 2007 and to 33000 MW by 2012. The investment required to achieve these targets is Rs.75 thousand crore to Rs.80 thousand crore, which is planned to be arranged through government and private investments.
The Northern Region ULDC caters to the seven states of Delhi, Punjab, Rajasthan, Uttar Pradesh, Haryana, Himachal Pradesh and Jammu & Kashmir. It has been established in a record time of 3 ½ years. The scheme involves establishment of 33 Control Centres, 369 Remote Terminal Units, 2100 Kms of Optic Fibre Cable and 3000 kms of micro-wave communication network. The total area covered is 10 lakh sq. kms. The ULDC system will be implemented for all the five Regional Grids in a phased manner for real time grid management and economic despatch of power in a unified manner. The system will culminate with the establishment of the National Load Despatch Center. The ULDC System is being implemented at an estimated cost of over Rs.2200 crore funded by various multilateral agencies including the World Bank, the Asian Development Bank and the European Investment Bank.
The ULDC Schemes being implemented by POWERGRID will have state-of-the art technology, including Supervisory Control and Data Acquisition (SCADA) with Energy Management System (EMS) software. The System enables real time monitoring, supervision and grid control to reduce grid disturbances and failures. It will also ensure maintenance of critical grid parameters like voltage frequency.
To ensure availability of data and voice communication continuously a dedicated high capacity, wide band, multi-channel digital communication technology equipped with micro-wave and optical fibre systems with redundancy has been installed.
The Minister of State for Power, Smt.Jayawanti Mehta, the Chief Minister of Delhi, Smt.Sheila Dikshit, the Secretary Power, Shri A.K.Basu, the Chairman-cum-Managing Director of POWERGRID, Shri R.P.Singh and other dignitaries were also present on the occasion.