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New Initiatives and Policy for Power Sector

New Initiatives and Policy for Power Sector


The Government has initiated several initiatives and policies for the development and improvement of power sector. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy and Mines in a written reply to a question in the Rajya Sabha today. These new initiatives are as follows:-

  1. Preparation of state specific action plans for ‘24X7 Power for All’ covering adequacy of generation, transmission capacity and distribution system. ‘24X7 Power for All’ documents have been signed for 35 States/UTs.

  1. The revised Tariff Policy was notified by Ministry of Power on 28.01.2016 with a focus on ‘4 Es’ i.e. Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability.

iii.    Launching of a scheme called Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for rural areas: The scheme provides for (a) separation of agriculture and non-agriculture feeders; (b) strengthening and augmentation of sub-transmission and distribution infrastructure in rural areas including metering at distribution transformers, feeders and consumers end; and (c) rural electrification.

  1. Launching of Integrated Power Development Scheme (IPDS) for urban areas: The scheme provides for (a) strengthening of sub-transmission and distribution networks in urban areas; (b) metering of distribution transformers/feeders/consumers in urban areas; and (c) IT enablement of distribution sector and strengthening of distribution network.

  1. Operationalization of Power System Development Fund (PSDF):  PSDF shall be utilized for the project proposed by distribution utilities for (a) creating necessary transmission system of strategic importance; (b) installation of shunt capacitors etc. for improvement of voltage profile in the grid; (c) installation of standard and special protection schemes; and (d) Renovation and Modernisation of transmission and distribution systems for relieving congestion; etc.

  1. Launching of Ujwal Discom Assurance Yojana (UDAY): The scheme has been launched for operational and financial turnaround of Discoms.

vii.  Measures initiated for reducing the generation cost of coal based power projects:

(a)    Increasing supply of domestic coal;

(b)   Coal usage flexibility

(c)     Rationalisation of coal linkages

viii Standard Bidding Documents (SBDs) have been developed for carrying out competitive bidding for procurement of power and transmission services.

xi  Guidelines and Model Bidding documents on “short term Procurement of power by distribution licensees through tariff based bidding process” and “Procurement of electricity for medium term from power stations set up on Finance, own and operate (FOO) basis”.

  1. Approved an innovative mechanism for utilisation of stranded gas based capacity by making available Re-gasified Liquefied Natural Gas (RLNG) along with interventions by all stakeholders, including support from PSDF through a transparent and efficient manner.

The Minister further stated that whenever any major policy is formulated, like amendments in Electricity Act, amendment in Tariff Policy, formulation of Standard Bidding Documents, formulation of National Electricity Plan, etc., formal consultations are held with stakeholders, including academia, industry, NGOs etc. In addition, comments/views of the stakeholders concerned are invited by placing the proposed initiatives on website of the Ministry of Power, the Minister added.

Anand Gupta Editor - EQ Int'l Media Network


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