The power sector in India supplies the world's 6th largest energy consumer, accounting for 3.

4% of
global energy consumption by more than 17% of global population.

The power sector in India is mainly controlled by the Government of India’s Public Sector
Undertakings (PSUs), have about 31.0% of total installed capacity of 171926.40 MW(as on
28/02/2011) in India is being produced by them. Major PSUs involved in the generation of
electricity include National Hydroelectric Power Corporation (NHPC) National Thermal Power
Corporation (NTPC), and Nuclear Power Corporation of India (NPCIL).
Besides PSUs, several state-level corporations are there which accounts for about 49.0% of overall
generation

Other than PSUs and state level corporations, private sector enterprises also play a major role
in generation, transmission and distribution, about 20.0% of total installed capacity is generated
by private sector.

India is the sixth largest in terms of power generation. About 65% of the electricity consumed
in India is generated by thermal power plants, 22% by hydroelectric power plants, 3% by
nuclear power plants and rest by 10% from other alternate sources like solar, wind, biomass etc.
53.7% of India’s commercial energy demand is met through the country’s vast coal
reserves. The country has also invested heavily in recent years on renewable sources of energy
such as wind energy. As of Oct 2010, India’s installed wind power generation capacity stood
at 11632.44 MW. Additionally, India has committed massive amount of funds for the
construction of various nuclear reactors which would generate at least 30,000 MW. In July 2009,
India unveiled a $19 billion plan to produce 20,000 MW of solar power by 2020.

The per capita power consumption

India : 733.54KWh/yr
Global : 2340KWh/yr

Electricity Generation
India has the fifth largest generation capacity in the world with an installed capacity of 152 GW as on 30 September
20091, which is about 4 percent of global power generation. The top four countries, viz., US, Japan, China
and Russia together consume about 49 percent of the total power generated globally. The average per capita
consumption of electricity in India is estimated to be 704 kWh during 2008-09. However, this is fairly low when
compared to that of some of the developed and emerging nations such US (~15,000 kWh) and China (~1,800 kWh).
The world average stands at 2,300 kWh2. The Indian government has set ambitious goals in the 11th plan for
power sector owing to which the power sector is poised for significant expansion. In order to provide availability of
over 1000 units of per capita electricity by year 2012, it has been estimated that need-based capacity addition of more than
100,000 MW would be required. This has resulted in massive addition plans being proposed in the sub-sectors of Generation
Transmission and Distribution.

Thermal Power
Current installed capacity of Thermal Power is 111324.48 MW which is 65.75% of total
installed capacity.

 Current installed base of Coal Based Thermal Power is 92418.38 MW which comes to
53.75% of total installed base.
 Current installed base of Gas Based Thermal Power is 17706.35 MW which is 10.3% of
total installed base.
 Current installed base of Diesel Based Thermal Power is 1199.75 MW which is 0.69%
of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country.

Hydro Power
India was one of the pioneering countries in establishing hydro-electric power plants. The power
plant at Darjeeling and Shimsha(Shivanasamudra) was established in 1898 and 1902 respectively
and is one of the first in Asia. The installed capacity as on (28/02/11) is approximately 37367.4
MW (21.73%) The public sector has a predominant share of 97% in this sector.

Nuclear Power

Currently, seventeen nuclear power reactors produce 4,780.00 MW (2.78% of total installed
base).

Renewable Power(RES)

Current installed base of Renewable energy is 18454.52 MW which is 10.73% of total installed
base with the southern state of Tamil Nadu contributing nearly a third of it largely through wind
power.

Electricity Transmission
The current installed transmission capacity is only 13 percent of the total installed generation capacity 3. With
focus on increasing generation capacity over the next 8-10 years, the corresponding investments in the transmission
sector is also expected to augment. The Ministry of Power plans to establish an integrated National Power Grid in the
country by 2012 with close to 200,000 MW generation capacities and 37,700 MW of inter-regional power transfer
capacity. Considering that the current inter-regional power transfer capacity of 20,750 MW 4, this is indeed an
ambitious objective for the country.

Transmission of electricity is defined as bulk transfer of power over a long distance at high
voltage, generally of 132kV and above. In India bulk transmission has increased from 3,708 ckm
in 1950 to more than 166000ckm, out of which 75556ckm is transmitted by Power Grid
Corporation of India (as on 30 Sep. 2010 ). The entire country has been divided into five
regions for transmission systems, namely, Northern Region, North Eastern Region, Eastern
Region, Southern Region and Western Region. The Interconnected transmission system
within each region is also called the regional grid.

While the predominant technology for electricity transmission and distribution has been
Alternating Current (AC) technology, High Voltage Direct Current (HVDC) technology has
also been used for interconnection of all regional grids across the country and for bulk
transmission of power over long distances.

Electricity Distribution
While some progress has been made at reducing the Transmission and Distribution (T&D) losses, these still
remain substantially higher than the global benchmarks, at approximately 33 percent. In order to address some of the
issues in this segment, reforms have been undertaken through unbundling the State Electricity Boards into
separate Generation, Transmission and Distribution units and privatization of power distribution has been initiated
either through the outright privatization or the franchisee route; results of these initiatives have been somewhat
mixed. While there has been a slow and gradual improvement in metering, billing and collection efficiency,
the current loss levels still pose a significant challenge for distribution companies going forward.

Rural electrification
Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttranchal, Madhya Pradesh etc are some of the states where
significant number (more than 10%) of villages are yet to be electrified.

 Number of Villages (1991 Census) – 593,732

 Villages Electrified (31/08/2010) – 503,924
 Village level Electrification % – 84.9%

Installed capacity of power utilities

Total
Installed Total
Rank State/Union Territory Capacity Thermo Nuclear Hydro RES**
159968.4
— India 5 95152 4860 36878 13242
1 Maharashtra 21469.24 14071 852.06 3332.83 2159.21
2 Tamil Nadu 14638.28 6957.77 657.39 2093.95 4379.64
3 Gujarat 14325.47 8104.08 37.41 3572.93 668.66
4 Andhra Pradesh 13920.58 9498.39 825 3772 1397.5
5 Karnataka 10533.54 7034.47 203.72 1605.49 402.98
6 Uttar Pradesh 9,646.73 4057.09 190.9 3518.2 1880.54
7 Madhya Pradesh 6,780.01 3435.93 151.04 3031.57 161.47
8 West Bengal 8,113.27 4534.01 92.88 3223.67 262.71
9 Punjab 6,426.15 3774.03 469 1456.82 726.3
10 Rajasthan 8,471.69 6470.14 740 1162 99.55
11 Haryana 8,530.29 7054.03 76.16 1331.4 68.7
12 DVC 3386 3190 0 196 0
13 Delhi Territory 3,677.34 3045.2 47.08 585.06 0
15 Kerala 3514.05 1545.82 80.09 1769.1 119.04
12 Orissa 2072.46 865.23 0 1174.93 32.3
19 Jharkhand 2,152.57 1972.52 0 176 4.05
21 Himachal Pradesh 1,896.47 156.43 14.08 1540.84 185.12
14 Chhattisgarh 3,607.05 3312.9 0 120 174.15
20 Bihar 1,969.99 1846.59 0 73 50.4
17 Uttarakhand 2,383.03 301.05 16.28 1955.73 109.97
18 Jammu and Kashmir 2,158.95 509.62 68 1469.5 111.83
22 Assam 980.3 522.19 0 431 27.11
23 Goa 357.23 327.18 0 0 30.05
 24 Meghalaya 288.08 28.05 0 229 31.03
25 Pondicherry Territory 256.62 239.51 17.09 0 0.02
26 Tripura 243.36 165.35 0 62 16.01
28 Arunachal Pradesh 180.14 36.88 0 98 45.26
29 Manipur 158.86 71.41 0 81 5.45
30 Mizoram 119.33 67.86 0 34 17.47
27 Sikkim 193.09 76.98 0 75 41.11
31 Nagaland 102.67 21 0 53 28.67
32 NLC 100.17 100.17 0 0 0
33 Chandigarh Territory 93.46 41.58 4.84 47.04 0

Andaman and Nicobar Islands

36 Territory 65.4 60.05 0 0 5.35

34 Dadra and Nagar Haveli Territory 80.78 78.8 1.98 0 0

35 Daman and Diu Territory 71.1 69.12 1.98 0 0

37 Lakshadweep Territory 10.73 9.97 0 0 0.76

Power Finance Corporation Ltd.

PFC was declared a public Financial Institution under Section 4(a) of the Companies
Act, 1956 in August, 1990. The corporation was registered as a nonbanking
financial company by RBI and has been conferred with the status of Nav-Ratna PSU
by Govt. of India on 22nd June, 2007. The authorised capital of PFC is Rs.2000/-
crores. The paid up capital as on 31.03.2007 was Rs. 1147.76 crores.

PFC has been providing financial assistance so far for State Power Utilities and Muncipal Run Utilities,
besides playing a catalytic role in bringing about overall improvement in the power sector performance.PFC
has expanded its lending portfolio to cover the joint, central and private sector. The corporation has widened
its range of studies/facilities by introdusing bridge loan, leasing, supplier's credit assistance for
studies/consultancies/trainnings, bill discounting and rediscounting, working capital schemes, bonds, shares,
gurantee services etc.

main objectives

 To Finance Power Projects in particular Thermal and hydro Projects

 To Finance Power Transmission & Distribution work.

 To Finance Renovation & Modernisation of power plants.

 To Finance System Improvement and Energy Conservation schemes.

 To Finance maintenance and repair of capital equipment etc.

  To Finance survey and investigation.

 To Finance studies, schemes and experiments.

 To Finance other energy sources.

Rural Electrification Corporation(REC)

REC is a strategic player in financing of entire Power Infrastructure space which
includes financing for generation, transmission, distribution and rural electrification
projects, across the country without any limit. Out of every 10 pumpsets in the
country, 6 have been energized under the schemes financed by REC.
REC is one of the leading Public Financial Institutions operating in Power
Infrastructure space. The financial products primarily include long term loans, debt
refinancing short term and bridge loans. REC's list of clients comprises of public
sector power utilities as well as private sector borrowers.
REC has also jointly promoted Energy Efficiency Services Limited with other PSUs to
play a key role in implementation of the National Mission on Enhanced Energy
Efficiency under the Jawahar Lal Nehru National Solar Mission.

Major PSU’s in Energy Sector:

NTPC :
NTPC Limited (Formerly National Thermal Power Corporation) is the largest state-owned power
generating company in India. Forbes Global 2000 for 2009 ranked it 317th in the world. It is an Indian
public sector company listed on the Bombay Stock Exchange although at present the Government of
India holds 84.5%(after divestment the stake by Indian government on 19october2009) of its equity.
With a current generating capacity of 31134 MW, NTPC has embarked on plans to become a 75,000 MW
company by 2017. It was founded on November 7, 1975.

 Revenue-    Rs 50,188.52 crore (US $10.89 billion) (2009-10)

 Net Income-    Rs 8,837.65 crore(US $ 1.92 billion) (2009-10)
 Employee-   25,944(2009)

NHPC:
NHPC Limited (Formerly National Hydroelectric Power Corporation), A Govt. of India Enterprise, was
incorporated in the year 1975 with an authorised capital of Rs. 2000 million and with an objective to
plan, promote and organize an integrated and efficient development of hydroelectric power in all
aspects. Later on NHPC expanded its objects to include other sources of energy like Geothermal, Tidal,
Wind etc.

 Net Income - Rs 2,090 crore (2009-2010)

 Authorised Capital - Rs150000 Million
  Energy Generated - 16960.45 MU

NPCIL:

The Nuclear Power Corporation of India Limited (NPCIL) is a government-owned

corporation of India based in Mumbai. One of the public sector undertakings, it is wholly owned by
the Union Government and is responsible for the generation of nuclear power for electricity. NPCIL is
administered by the Department of Atomic Energy (DAE), part of the Ministry of Science and
Technology. NPCIL is the only power utility company in India which uses nuclear fuel sources.

Net Income - Rs 416.41 crore (US $ 90.36 million)

NLC:

Neyveli Lignite Corporation Limited (NLC) is a government-owned lignite mining company in India. One
of the public sector undertakings, the company is wholly owned by the Union Government (49 percent)
and administered throughMinistry of Coal. NLC operates the largest open-pit lignite mines in India and
mines some 24 million tonnes of lignite per year for fuel, with an installed capacity of 2490 MW
of electricity per year. Of this, the origin state of Tamil Nadu consumes 1167 MW, with the
neighboring states (Kerala, Karnataka, and Andra Pradesh) consuming most of the rest.

DVC:

The Damodar Valley Corporation, popularly known as DVC, is the first multipurpose river valley project
of independent India. The corporation came into being on July 7, 1948 by an Act of theConstituent
Assembly of India (Act No. XIV of 1948). It is modelled on the Tennessee Valley Authority of
the USA. Jawaharlal Nehru, prime minister of India, Dr. B.C.Roy, chief minister of West Bengal and Sri
Krishna Sinha, chief minister of Bihar, took personal interest to ensure early success of the project.

Private Company
Reliance Power Limited-
The company was incorporated in January 1995 as Bawana Power Private Limited and changed its name
to Reliance Delhi Power Private Limited in February 1995. Later, it changed its name to Reliance EGen
Private Limited in January 2004, to Reliance Energy Generation Limited in March 2004, and to Reliance
Power Limited in July 2007.

A part of the Reliance Anil Dhirubhai Ambani Group, was established to develop, construct and
operate power projects in the domestic and international markets. Reliance Energy Limited, an
Indian private sector power utility company along with the Anil Dhirubhai Ambani Group
promotes Reliance Power. It ranks among India ‘s top listed private companies on all major
financial parameters,including assets,sales,profits and market capitalization.

Suzlon Energy-Conceived in 1995 with just 20 people, Suzlon is now a leading wind

power company with:

 Over 16,000 people in 25 countries

 Operations across the Americas, Asia, Australia and Europe
 Fully integrated supply chain with manufacturing facilities in three continents
 Sophisticated R&D capabilities in Belgium, Denmark, Germany, India and The Netherlands
 Market leader in Asia, Suzlon Market Share (Combined with REpower)rose to 9.8% thereby
making Suzlon 3rd * largest wind turbine manufacturing company in the world

Tata Power Co. Ltd. –

Tata Power started as the Tata Hydroelectric Power Supply Company in 1911, it is an amalgamation of
two entities: Tata Hydroelectric Power Supply Company and Andhra Valley Power Supply Company
(1916). Today Tata Power Company Limited is India’s largest private sector electricity generating
company with an installed generation capacity of over 2977 MW. The Company is a pioneer in the Indian
power sector. Tata Power has a presence in thermal, hydro, solar and wind areas of power generation,
transmission and retail. The founders of Tata Power pioneered the generation of electricity in India with
the commissioning of India’s first large hydro-electric project in 1915 in Bhivpuri and Khopoli, Karjat.

Map of Thermal Power Station in India

Electricity Regulation
The Electricity (Supply) Act, 1948

 Mandated creation of SEBs.

 Need for the State  to step  in (through SEBs)  to extend electrification (so far limited to
cities) across the country.
  Main amendments to the Indian Electricity Supply Act
o Amendment in 1975 to enable generation in Central sector.
o Amendment to bring in commercial  viability  in  the  functioning SEBs – Section
59 amended to make the earning of a minimum return of 3% on fixed assets a
statutory requirement (w.e.f 1.4.1985) .
o Amendment  in  1991  to  open  generation  to  private  sector  a establishment of
RLDCs.
o Amendment  in  1998  to  provide  for  private  sector  participation transmission,
and also provision relating to Transmission Utilities.

The Electricity Regulatory Commission Act, 1998

 Provision  for  setting  up  of  Central  /  State  Electricity  Regulatory Commission with
powers to determine tariffs.
 Constitution of SERC optional for States.
 Distancing of Government from tariff determination.

The Electricity Act, 2003

The Electricity Bill, 2001 was  introduced  in Lok Sabha on 30th August, 2001  and  was  subsequently 
referred  to  the  Standing  Committee  on  Energy  for examination and report. The Standing Committee
submitted its report on 19th December, 2002. Based on  the  recommendations of  the Standing
Committee on Energy,  the Government  of  India moved  certain  amendments. The Electricity Bill, 
2001 along with these amendments, was passed by Lok Sabha on 9th April, 2003.

The  Bill  as  passed  by  Lok  Sabha  was  considered  and  passed  by  Rajya Sabha on 5th May,
2003. The  Electricity  Bill,  2003  as  passed  by  both  Houses  of  the  Parliament received  President’s 
assent  on  26th May,  2003  and  was  notified  in  the Gazette of India on 2nd June, 2003.The 
provisions  of  the  Act  except  section  121 were  brought  into  force with effect from 10th June 2003.

The Electricity (Amendment) Bill, 2005

  The Electricity (Amendment) Bill, 2005 was introduced in  the Lok Sabha  on   December
23,2005 to amend the Electricity Act, 2003.  The Bill was referred to the Parliamentary Standing
Committee on Energy (Chairperson: Shri Gurudas Kamat), which  was scheduled to submit its 
report on March 23, 2006.

 The Bill proposes to amend the Act by deleting the  provision for ‘elimination’ of cross
subsidies.  It , however, retains the provision for reduction of cross subsidies.  The  provision was
deleted taking into concern the fact that it  might not be possible to eliminate cross subsidies in the
near future.
 The Bill seeks to provide that both the Central Government and State Government would jointly
attempt to supply electricity to all areas including villages and hamlets through rural electricity
infrastructure and electrification of households.  In the Act, the onus of rural electrification was
solely on the State Government.

The offences relating to theft  of electricity, electric lines,

Total Installed Capacity

Sector
MW %age

State Sector
82,452.58 47.96

Central Sector
52,712.63 30.66

Private Sector
36,761.19 21.38

Total
1,71,926.40

Fuel
MW %age

Total Thermal
111324.48 64.75

                                             Co 92,418.38 53.75

al

                                             Ga 17,706.35 10.30

s
                                             Oil 1,199.75 0.70

Hydro (Renewable)
37,367.40 21.73

Nuclear
4,780.00 2.78

RES** (MNRE)
18,454.52 10.73

Total
1,71,926.4 100.00
0