Transcript Republic of India is a Neighbour of China

Republic of India is a Neighbour
of China
• Most Populous Countries. It is No.2. China is No.
1.
• It has unique history of Political stability and a
Socialistic Pattern of Government which has
continued for 47 years.
• The Country was very poor when Independence
came.
• Today it has Commendable Achievements in
different fields.
It has several Overcome them.
We mention here.
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GDP Low Rate of Growth
Food Crisis
Foreign Exchange Crisis
Emerging Energy Crisis
GDP Price
ASCI Presentation
Food Crisis
ASCI Presentation
Foreign Exchange
ASCI Presentation
Energy Situation
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Major sources of Energy are:
Coal – Growth Rate How it has achieved ?
Oil – Growth Rate – How it has achieved?
Gas Growth Rate – How it has achieved ?
Electricity Growth Rate – How it has
achieved ?
Public Sector Strategy
• Public Sector to begin with consolidating
the small things into bigger ones.
• When Public Sector will established, allow
local Private Sector to compete.
• Prices Regulations Gradually Removed.
• Current Problems – How it is proposed to
be solved ?
Introducing Competition in
Power Sector
• Open Access Allowed.
• All transmission lines operated by Central
Government and State Governments.
• Any Consumer or Utility can use
transmission facility of anyone else, subject
to availability of capacity.
• He should pay a Wheeling Charge as fixed
by concerned regulation.
• If the purchaser is not a utility, he should
pay a surcharge equals marginal cost of
procurement plus wheeling charge plus
average T&D loss reduced from the tariff.
• Surcharge should be faced out _____ with
the gross subsidy.
Policy Framework for the New
Policy
• New capacity can be put up by central PSU,
State PSUs, State utilities, private sector
based power purchase agreement with the
utility.
• Private sector units as merchant plants to
supply bulk means.
Methodology and Principles of
Tariff Determination are
specified by CERC for CPSUs
• Government shall with the advice of
Regulatory Commissions specify the
process of bidding.
• All procurement should be on the basis of
bidding usually bidding item is cost of
supply of power fixed cost plus variable
cost. Variable cost is a pass through.
Why Open Access ?
• It will enhance supply auction and introduce
competition will open up markets and will
help purchaser to sell to consumers outside
the distribution area.
• It will support trading market.
• Should lead to optimal resource
exploitation.
Why Surcharge ?
• Normally
Incharge should be allowed.
• In India all utilities and the regulators charged the
HT industrial consumers much more than poorer
consumers like Households, Agriculture, Cottage
Industries etc.
• The element of excess is called Gross Subsidy.
• This gross subsidy will have to be determined.
Coal Sector Modernization
Modernization Efforts So far
• India Third largest producer of coal 400 mt/yr. China 1st –
2000 mt/yr. USA 2nd 100 mt/yr.
• Deposits are: 8.6 % of the world, China 12 %, USA 25 %.
• Mining Coal began in India in 1774 for steam trains.
• On date independence around 50 mt/year from
over 3000 mines, mostly private.
• 1971-73, all coal mines were nationalised and
consolidated.
• From 1975, coal for railways got reduced to near
zero today. But coal for power generation
increased.
Coal Sector 3/3
• Only two major public sector Coal India
Limited (CIL) and Singareni Colliery
Company Limited. (SCCL)
• Production in 2003-04 is around 400 tonnes
• Projected demand in 2029-30 in 1242 (Low
Coal Scenario) 1812 (High Coal Scenario).
OIL SECTOR1/4
• In Pre-independence days oil was extracted
very small quantities in Assam by British
owned oil companies.
• In 1955, Oil & Natural Gas Commission
was established by Legislative sanction.
• With mainly USSR assistance oil
exploration was done on shore and offshore.
Oil Sector 2/4
• In early Seventies, Bombay High off-shore
discovery increased crude production to over 30
mt/yr.
• From 1990, India adopted a liberalised economic
policy & private companies were given
exploration and development leases under NELP.
• Production of oil has stagnated around 30 mt/yr.
• Production of Gas has increased as shown in table.
Oil Sector 3/4
• Oil production were imported and marketed by
private oil companies, Burma Shell, Caltex etc.
• Indian Oil Company was established in 1959, to
import crude and refine it to products. This has
expanded its capacity to about 55 million tonnes
throughput
• Private oil companies were nationalized I 1976 but
continued as separate companies to provide a
competitive market.
Oil Sector 4/4
• Private agencies can establish refineries and
the one fully private refinery is the largest
single unit refinery with 20 million tonnes
throughput.