ODISHA POWER SECTOR SUPPORT OF STATE GOVT OVERVIEW SUPPORT Dept. of Energy Govt. of Odisha

REFORM PROCESS Odisha is the First State to undertake reforms in the Power Sector in 1995. The Orissa Electricity Reform Act was enacted – 1995 Generation, Transmission & Distribution functions were unbundled & corporatized in 1996 and Distribution function was privatised in 1999. GRIDCO & OHPC became successor organizations of OSEB. Orissa Electricity Regulatory Commission (OERC), set up in 1996- the first Electricity Regulator of the Country.

BOARD UNBUNDLING CORPORATISATION PRIVATISATION GENERATION TRANSMISSION DISTRIBUTION CORPORATISATION --------------------------------------------- PRIVATISATION

TRANSMISSION & DISTRIBUTION BOARD GENERATION TRANSMISSION & DISTRIBUTION 1996 DISCOMs (WESCO NESCO SOUTHCO CESU) OPTCL BULK SUPPLY Joint Venture 1999 2005 2005

PRESENT STRUCTURE OF POWER SECTOR IN ODISHA GENERATION TRANSMISSION DISTRIBUTION Central Thermal Stations 1663 MW DISCOMs ‘Utilities’ WESCO NESCO SOUTHCO CESU Central Hydro Stations 204 MW Odisha Hydro Power Corporation 2023 MW Aggregator, Bulk Supply & State Nodal Agency Odisha Power Generation Corporation 420 MW Renewable Sources 215 MW Trading of Surplus Power Exchange Bilateral Banking IPPs 1344 MW STU CGPs Surplus Power

RECENT ACHIEVEMENT AND PROXIMATE TARGET Particulars Unit FY 2000 FY 2014 FY 2017 Projected for FY 2019 Consumers Lakh 16 53 68 96 Peak Demand MVA 1,680 3700 4,300 5,640 Energy MU 10,000 22,560 23,517 32,850 EHT Line CKT KMs 8,267 11,705 13,071 19,256 Grid S/s Nos. 61 108 132 177 33/11 KV S/s 550 600 700 1250 DTR 40,170 1,44,080 1,97,120 2,49,460 HT Line Kms 60,100 1,13,900 1,40,330 2,26,900 LT Line 54,160 1,09,840 1,62,000 2,41,290 AT & C Loss (%) 57 40 34 26 No. of Consumers have grown by 4 times in 17 years 13 Lakh Consumer added in last 3 years Commensurate growth in Infrastructure have taken place

GROWTH OF ELECTRICITY CONSUMERS (IN LACS)

ROLE OF STATE GOVT. Subsidised Tariff to some category (Agriculture, BPL etc) Equity Infusion in State owned Utilities Schematic Support for Infrastructure and consumer growth Administrative Support

UNIQUE FEATURES OF ODISHA GENCO- Pvt. Management Distribution- Private Management FINANCIAL SUPPORT Govt. of India Govt. of Odisha Urban Electrification Rural Electrification Financial Restructuring

PRIVATIZATION ADVANTAGE DISADVANTAGE Saving in Govt Budget No Financial Infusion IT enabled billing system No Network Expansion Reorganization of Business Model No Network up-gradation Minimisation of Political interference Deterioration in financial health

CONSTRAINTS Network Inadequacy Visible Consumer Growth State Govt. Support became Inevitable

Revenue Subsidy or CAPEX Funding STATE SUPPORT Revenue Subsidy or CAPEX Funding REVENUE SUBSIDY CAPEX FUNDING Open ended Need based Promote inefficiency Self limiting Encourage wasteful use of Power Better Supervision & Monitoring Unsustainable- impact on State budget Sustained benefit

STATE SUPPORT (SCHEMES) GENERATION TRANSMISSION DISTRIBUTION OOPOP Network Expansion CAPEX ODSSP ODAFFP BGJY BSVY DDUGJY IPDS RGGVY-II Network Up- gradation 3. Modernisation SCRIPS SMART GRID Network Expansion Equity Capital Infusion SCRIPS JICA Funded Projects Network Up- gradation RRCP DRC DRPS 3. Modernisation Smart Grid OPGC (2X660MW) Expansion Equity: Rs 2541 Cr. 2. OTPCL (3X800MW) Equity: Rs 268 Cr. OCPL Equity: Rs 200 Cr.

GOVERNMENT TRANSMISSION SCHEMES Objectives Project Cost. (Rs. In Crs) Project Period Equity Capital Infusion Improve power supply in the un-served areas of KBK / Tribal districts 860 2013-14 to 2018-19 Smart Grid Smart Network System- MORE Efficient, Reliable & Cost Effective Transmission of Electricity 250 2015-16 to 2017-18 SCRIPS 24x7 Un-interrupted and Reliable Power Supply in the State Capital Region 1,500 2015-16 to 2021-22 RRCP RELIABILITY- Reduce Interruptions- Multi Source Connectivity DRC Quick Restoration of Power Supply during Natural Disasters 140 DRPS Ensure Disaster Resilience- Reduce Damages to the Transmission Infrastructure during Natural Disasters 230 JICA FUNDED PROJECTS Meet the state demand of 13th Plan Period from 5000 MW to 10900 MW 1,300 TOTAL 4,530

NEW TECHNOLOGY 1 HTLS Conductors 2 Multi Circuit Towers 3 SL. No. Technology 1 HTLS Conductors 2 Multi Circuit Towers 3 Gas Insulated Sub-station 4 Advance Metering Infrastructure 5 Geographical Information System – Enterprise Resource Planning 6 Digitization & Automation 7 Smart Grid Readiness

GOVERNMENT DISTRIBUTION SCHEMES Sl. No. Scheme Scope Project Outlay (Rs. Cr) Project Period 1 Odisha Distribution System Strengthening Project (ODSSP) Construction of 473 New 33/11 KV Sub-Stations 3850 2014-15 to 2018-19 2 Odisha Dedicated Agriculture & Fishery Feeder (ODAFFP) Construction of 11 KV Dedicated Agricultural & Fishery Feeders 150 2014-15 to 2016-17 3 Biju Gramya Jyoti Yojana (BGJY) Electricity to all Villages/ Habitations having Population less than 100 950 launched in 2007-08 4 Biju Saharanchala Vidyutikaran Yojana (BSVY) Electricity to People living in Areas of Urban Local Bodies having Population 100 or Less 120 5 State Capital Region Improvement Project (SCRIPS) 24x7 Un-interrupted and Reliable Power Supply in the State Capital Region 1500 2015-16 to 2019-20

GOVERNMENT DISTRIBUTION SCHEMES Sl. No. Scheme Scope Project Outlay (Rs. Cr) Project Period 4 Restructured Accelerated Power Development and Reforms Programme (R-APDRP) Part-A (IT): IT System Setup at Data Center, Disaster Recovery Center & Centralised Customer Call Center Set up Part-A (SCADA): Distribution SCADA Implementation at Bhubaneswar & Cuttack towns Part-B: System Improvement works 400 2015-16 TO 2017-18 5 Capital Expenditure (CAPEX) Renovation/ Modernisation/ New Primary & LT Sub-Stations and Lines 960 2011-12 to 2015-16 6 Deendayal Upadhyaya Gram Jyoti Yojana. (DDUGJY) Construction of New 33/11 kV Substations, New 33 kV,11 kV & LT lines, Installation of distribution transformer , providing service connection to BPL consumer spread all over the State etc. 1650 2016-18 7 Integrated Power Development Scheme (IPDS): Distribution System Upgradation,Provisioning of solar panels on Govt. building, Net-metering, metering of feeders /distribution transformers/consumers and IT enablement extended to the selected towns 1100 8 Rajeev Gandhi Gramin Vikas Yojna (RGGVY-II) Identification of all un-electrified villages and hamlets across the State and electrification there of including BPL households . Subsumed within DDUGJY. 5050 (3550+1500) 2014-17 TOTAL 15,280

Power For All- Overview All Schemes [Central & State]- Distribution Sector (Rs. Cr) Scheme Sanctioned State/Utilities Central RGGVY- II 5,050 (3,550+1,500) 2,005 (505+1500) 3,045 DDUGJY 1,650 660 990 IPDS 1,100 440 RAPDRP 400 185 215 ODSSP 3,850 - CAPEX 960 ODAFF (Fishery) 150 BGJY 950 BSVY 120 BGJY(DESI) 600 Total 14,830 9,920 4,910

TOTAL STATE SUPPORT (Rs. In Crs.) SECTOR AMOUNT Generation 3,000 Transmission 4,530 Distribution 9,920 TOTAL 17,450

OUTCOME T&D Infrastructure strengthened 99% of the Villages electrified T&D Infrastructure strengthened Voltage profile improved at each voltage level Reliable power supply with Consumer satisfaction Reduction of AT&C loss Minimum Impact on Tariff

CAPEX BY GOVERNMENT: NO TARIFF HIKE Investment by Govt vis-à-vis Licensee: Benefits: Consideration in ARR/Tariff By Govt. By Licensee Return on Equity (On own fund) No Yes Interest on loan (On borrowed fund) Depreciation Scope Benefit System Strengthening Reliable Renovation & Modernization Quality Low tariff Affordable The objective of supply of quality & affordable power to consumers is achieved.

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