Thermal Power

Summary
  • Total installed generation capacity of 384GW transformed country from a power deficit to a power surplus country. *
  • Total Installed Capacity as on May 2022 was 402.8 GW of which 39.7 percent was generated from renewable sources.* 
  • NTPC Group achieves over 100 bn Units of cumulative generation in the current financial year that indicates improved performance and an increase in demand for power. *
  • India is well on its way to achieving and surpassing its nationally determined contribution (NDC) target which was 40% capacity by non-fossil-fuel sources by 2030.
  • India is the third-largest producer of electricity and consumer of energy. *
  • Arunachal Pradesh state has one of the highest potentials for generating hydro-power in India. It is divided into five river valleys having immense hydropower potential, currently estimated at 50,328 MW, or approximately 22%of India's current power generating capacity. *
  • Conventional power generation capacity to be commissioned by 2024-25 is at various stages of construction in the country which includes Thermal 36,765 MW, Hydro 10,164.50 MW and Nuclear 9,900 MW. *
  • The private sector in the power industry in India generates 49.4% of the country’s thermal power, whereas States and the Centre generate 24.6% and 26.0%, respectively. *
Reasons to Invest
  • Biomass has a huge potential as it is still an untapped resource with additional source of income, high scale of demand & favorable government policies in India.*
  • NTPC to set up India’s single largest solar park at Rann of Kutch. *
  • The government of India, through the Ministry of Power, launched the initiative of Ultra Mega Power Projects (UMPPs) in 2005. It comprises of 4,000 MW super thermal power projects (both pit head and imported coal-based) with the objective to develop large capacity power projects in India. Power Finance Corporation Ltd (PFC) was appointed as the nodal agency to facilitate the development of these projects. Various inputs for the UMPPs are tied up by the Special Purpose Vehicle (SPV) with the assistance of the Ministry of Power and Central Electricity Authority (CEA). CEA is involved in the selection of sites for these UMPPs.
  • The Ministry of Power has brought the guidelines for determination of tariff through a transparent process of bidding for procurement of power from UMPPs based on allocated domestic captive coal blocks and to be set up on Build, Own and Operate (BOO) basis.
  • UMPPs projects in the pipeline: *
    • Husainabad in Deoghar district in Jharkhand
    • Bijoypatna in Chandbali Tehsil of Bhadrak District, Narla & Kasinga sub-division of Kalahandi District in Odisha
    • Kakwara in Banka Distt in Bihar
    • Niddodi village in Karnataka
    • Sites in Tamil Nadu and Gujarat for their second UMPPs and a site in Uttar Pradesh are being examined
  • Hon’ble PM Shri Narendra Modi approved an investment of INR 1810.56 cr for 210 MW Luhri Stage-I Hydro Electric Project located on river Satluj. This project will generate 758.20 mn units of electricity annually. The power generated from the Project will help in providing Grid stability and will improve the power supply position. *
  • The new Electricity (Rights of Consumers) Rules, 2020 were issued to make the electricity follow easy and transparent. *
  • All India installed capacity in 2029-30 is estimated to be 8,17,254 MW which includes 2,66,911 MW Coal, 25,080 MW Gas, 71,128 MW Hydro, 18,980 MW Nuclear and 4,35,155 MW Renewable Energy Sources. *
  • India is world leader in Energy Transition. India has huge ambitions in energy transition and plans to have 500 GW of non-fossil based electricity installed capacity by 2030, so that non-fossil cleaner fuel comprises of 50% of the installed capacity mix by 2030.*
  • India completed electrifying 28.02 mn homes in 18 months and achieved universal household electrification. *
  • All States and Union Territories (UTs) have signed MoUs with the Central Government to ensure 24x7 power supply to all households, industrial & commercial consumers and adequate supply of power to agricultural consumers *

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Key Achievements
  • Sustainable Alternative Towards Affordable Transportation (SATAT) has envisaged developing 5000 CBG plants with a total CBG production capacity of 15 MMTPA by 2023. *
  • NTPC augments its solar footprint and achieves 69454 MW of installed capacity. *
  • SJVN Bags 679 MW Lower Arun Hydro Electric Project in Nepal. 
  • Cabinet approves Revised Cost Estimates for the strengthening of Transmission and Distribution in Arunachal Pradesh and Sikkim. *
  • During the month of February 2021, the capacity of Thermal is 1300 MW and Hydro is 150 MW which is the result of new ventures in the Thermal Sector. *
  • The 2000MW coal-based Simhadri Station is the first power project to implement an open sea intake from the Bay of Bengal which has been functional for more than 20 years. *
  • Coal India Ltd signs an MoU with GAIL and BEML for retrofitting LNG kits to run on dual fuel system. LNG will replace diesel use by 30 to 40 percent and reduce fuel cost by about 15 percent paving the way for INR 500 crore savings annually.
  • POWERGRID a Maharatna CPSE has upgraded Assam’s New Mariani Sub-station from 220 kV switching station to a 400/220 kV Sub-station with 2x500 MVA transformation capacity, 2x125 Mega volt ampere (re- active)  power  compensation  along  with  other  associated  bays  under  NERSS-VI project. *
  • National Open Access Registry (NOAR) has been designed as an integrated single window electronic platform accessible to all stakeholders including open access participants, traders, power exchanges, national/regional/state load despatch centres for electronic processing of short-term open access application thereby automating the administration of the short-term open access in inter-state transmission system. *
  • From 2014 to date (November, 2021), India has added power generation capacity of 160.8 GW consisting of 83,920 MW from Fossil Fuel and 76,900 MW from Non-Fossil Fuel Capacity making India power surplus. *
  • The total installed capacity was 395 GW as on 31.01.2022, out of which 235.9 GW is fossil fuel based (Coal/gas etc.) and 159.1 GW is non-fossil fuel (Renewable Energy + Nuclear) based. The installed capacity is now close to double the peak demand and India is exporting power to Nepal, Bangladesh and Myanmar. *
  • Share of non-fossil fuel based generation capacity in the total installed capacity of the Country likely to increase from 42% as on Oct 2022 to more than 64% by 2029-30.*
  • Coal based power generation has registered a growth of 9.26% April 2022 as compared to April 2021. The overall power generation in April 2022 has been 11.75% higher than the power generated in April 2021. *
  • Odisha's NTPC Talcher Kaniha (3000 MW) is the best-performing thermal power plant with 94.2% Plant Load Factor.*
  • 14 Plants of NTPC have already started co-firing & approximately 77000 Tons of Biomass have been co-fired to date.*
  • A total of around 83,887 Metric tonnes of Biomass has been utilized (till 31st October) as green fuel for co-firing in Power Plants so far. Till 30.10.2022, 39 TPPs across the country has started to utilize biomass in the co-firing with coal.*
Recent Announcements

9th March 2023: UP Government plans to operationalise at least four key coal-fired thermal power projects to augment the power supply in the state in the next 12 months with 660 Mw unit each in Obra and Jawaharpur Super Thermal Power stations planned for Phase-I.

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13th February 2023: National Institute of Ocean Technology (NIOT) under the Ministry of Earth Sciences (MoES) is implementing an Ocean Thermal Energy Conversion (OTEC) desalination plant at Kavaratti in Lakshadweep, powered by about 65 kW power generated from OTEC. 

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7th February 2023: Coal stock at Thermal Power Plants across the country as of 29.01.2023 is 32.97 MT. 

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3rd February 2023: Power Min says 39 hydro projects under implementation; 9 stalled.

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24th January 2023: NTPC Group capacity crosses 71 GW with successful completion of the trial operation of first unit of 660 MW North Karanpura Super Thermal Power Project, Jharkhand (3x660 MW).

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Statistics
  • With a production of 156.1 Tera Watt-hour (TWh), India is the world’s third-largest producer of electricity.7 India is also the third-largest consumer of energy. *
  • The Power industry accounts for almost a quarter of the projected investments amongst all the infrastructure industries between 2012-17.
  • Coal Supply to Thermal Plants Recorded More than 2 mn Tonnes. *
  • A total of 114.07 GW renewable energy capacity (excluding large hydro) has been installed in the country as on 30th June 2022. Further, a capacity of 60.66 GW is under various stages of implementation and a capacity of 23.14 GW is under various stages of bidding.*
  • Electricity cumulative index increased by 10.5 per cent during April to August, 2022-23 over the corresponding period of previous year.*
  • Electricity generation (weight: 19.85 %) increased by 10.0 % in December 2022 over December 2021. Its cumulative index increased by 9.8 % during April to December 2022 over the corresponding period of previous year.*
  • Power Finance Corporation (PFC) non-banking financial firm under Ministry of Power records highest ever net profit of 8,444 crore for FY 21, up 49% on year on year (Y-o-Y) basis. *
  • Commercial generation of electricity has increased from 34162 mn Units in calendar year 2014 to 43918 mn Units in calendar year 2021. *
  • Government plans to reduce the share of coal based thermal power generation capacity to 32% by 2030 as against the present share of 52%. *
  •  Increase in Availability of Power significantly reduced consumption of kerosene from 892 crore litres in 2014-15 to 204 crore litres in 2020-21. *
  • Availability of power in rural areas which was about 12:30 hours in 2015 has gone up to 21:09 hours and in the urban areas it has gone upto 23:41 hours. *
  • As of May 2022, India has a total Thermal installed capacity of 236.1 GW of which 58.6% of the thermal power is obtained from coal and the rest from Lignite, Diesel, and Gas. *
  • About 80525 MT of biomass has been co-fired in 35 Thermal power plants in the country with a cumulative capacity of 55335 MW till 24th July 2022.* 
  • While 14 out of these plants belong to NTPC, there are 21 power plants from the State and Private sector, thus, quadrupling the number of plants within an year.*
  • NTPC group companies recorded a generation of 203.5 BU from April to September 2022, registering an increase of 15.1% from 176.8 BU generated in April to September 2021.*
  • As per record of Sustainable Agrarian Mission on use of Agri-Residue in Thermal Power Plants (SAMARTH), total 83888 Metric Tonne biomass has been cofired in power plants till 31.10.2022.*
Growth Drivers
  • National Institute of Ocean Technology (NIOT) under the Ministry of Earth Sciences (MoES) is implementing an Ocean Thermal Energy Conversion (OTEC) desalination plant at Kavaratti in Lakshadweep, powered by about 65 kW power generated from OTEC. *
  • Co-firing of agro residue pellets with coal has started in 39 thermal power plants. *
  • MoP has established a National Mission on Use of Biomass in Thermal Power Plants (NMBTPP) in July 2021 to expedite the utilization of biomass in TPPs. *
  • NHPC inks MoU with Rajasthan govt for ultra-mega renewable energy power park. *
  • The Cabinet approved the time extension (36 months) to identify 10 Provisional Mega certified projects for furnishing the final Mega Certificates to the Tax authorities.
  • NTPC inks pact with Gujarat Gas Limited (GGL) to blend Green Hydrogen in Piped Natural Gas. Green hydrogen will be produced by using electricity from the existing 1 MW floating solar project of NTPC Kawas. This will be blended with PNG in a predetermined proportion and will be used for cooking applications in NTPC Kawas Township. *
  • National grid operator POSOCO signed an MOU with India Meteorological Department (IMD) where weather information provided by IMD will be used by the Power System Operators across India for better management of Indian Power System and for the purpose of analysis. *
  • Central Transmission Utility of India Limited (CTUIL) has successfully integrated filing of Applications for grant of Connectivity, Long Term Access and Medium-Term Open Access to Inter State Transmission System (ISTS) in India as well as to Participating Entities located in the Neighboring Countries through the National Single Window System (NSWS) portal. It will enables ‘Single-point’ approvals as well as clearances needed by Investors, Entrepreneurs, and Businesses in India thereby facilitating ‘Ease of Doing Business’ initiatives by Ministry of Power. *
  • NHPC under the MOU signed for Leh district shall consider the development of Pilot Green Hydrogen fuel cell-based Microgrid including Hydrogen production to meet the power requirement of the NHPC guest house at Nimmo Bazgo Power Station (Leh) within NHPC premises. *
  • NHPC under the MOU signed for the Kargil district, the hydrogen generated in Kargil will be used in fuel cells for mobility which will be capable to run two buses for up to 8 hrs in the local area of Kargil. *
  • Ministry of Power has notified Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 on 06.06.2022 in order to further accelerate our ambitious renewable energy programmes, with the objective of ensuring access to affordable, reliable, sustainable and green energy for all. *  
  • Power System Operation Corporation (POSOCO) is the Central Nodal Agency to set up and operate a single window green energy open access system for renewable energy for the consumers from all over the country. *
  • PM dedicates and lays foundation stone of green energy projects of NTPC worth over INR 5200 cr. *
  • The national portal for Rooftop solar is launched to enable online tracking of the process of installation of rooftop solar plants, starting from registering the applications to release of subsidy in residential consumers’ ('beneficiaries’) bank account after installation and inspection of the plant. The estimated capacity under the national solar rooftop program is 4000 MW. * 
  • Largest nuclear power generating site to be set in Maharashtra with capacity of 9900 MW. *
FDI Policy
  • Under the automatic route, 100% Foreign Direct Investment (FDI) is allowed in the Power industry for generation from all sources (except atomic energy), transmission and distribution of electric energy and power trading, subject to all the applicable regulations and laws.
  • FDI in power exchanges up to 49% registered under Central Electricity Regulatory Commission (Power Industry) Regulations, 2010 under the automatic route, subject to the following conditions, as laid down in the Policy:
    • Foreign Institutional Investors (FII)/ Foreign Portfolio Investors (FPI) purchases shall be restricted to the secondary market only
    • No non-resident investor/entity, including persons acting in concert, will hold more than 5% of the equity in these companies
    • The foreign investment will have to comply with the Securities & Exchange Board of India (SEBI) regulations and the applicable laws/regulations, security and other conditions.
  • The cumulative FDI equity inflow in the Power sector is USD 16.57 bn during the period April 2000 to December 2022. This constitutes 2.65% of the total FDI inflow received across sectors. *

 

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Sector Policy

  • Scheme for Procurement of Aggregate Power of 4500 MW: The objective of the scheme is to help states that are facing power shortage and help generation plants to increase their capacities.*

  • Ministry of Power issues amendment in the revised consolidated Guidelines & Standards dated for Charging Infrastructure for Electric Vehicles:
    • The public charging stations shall have the feature of prepaid collection of service charges with the time of the day rates and discount for solar hours.
    • CEA will periodically recommend to the State Government the ceiling limit of service charges to be levied. This Committee shall also recommend "time of the day rate " for service charges as well as the discount to be given for charging during solar hours.
       

ELECTRICITY ACT, 2003

  • Elimination of licensing for electricity generation projects
  • Increased competition through international competitive bidding
  • Demarcation of transmission as a separate activity

NATIONAL TARIFF POLICY, 2006

Revised Tariff Policy, 2016:

  • Ensure the availability of electricity to consumers at reasonable and competitive rates
  • Ensure financial viability of the sector and attract investments Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimize perceptions of regulatory risks
  • Promote competition, efficiency in operations and improvement in the quality of supply
  • Promote the generation of electricity from renewable sources 
  • Promote hydroelectric power generation including Pumped Storage Projects (PSP) to provide adequate peaking reserves, reliable grid operation and integration of variable renewable energy sources
  • Evolve a dynamic and robust electricity infrastructure for better consumer services
  • Facilitate the supply of adequate and uninterrupted power to all categories of consumers
  • Ensure creation of adequate capacity including reserves in the generation, transmission and distribution in advance, for the reliability of supply of electricity to consumers. 

ULTRA MEGA POWER PROJECTS (UMPPS)

  • Govt. of India undertook the initiative for setting up of Ultra Mega Power Projects of 4 GW capacity each, to reap the benefits of economies of scale, and provide fast capacity addition. The Ministry of Power identified Power Finance Corporation (PFC) as the nodal agency for the UMPPs. To enhance investors' confidence, reduce risk perception and get a good response to competitive bidding, PFC incorporated Special Purpose Vehicles (SPVs) for each UMPP. The SPVs take up the bidding process on behalf of the power procuring (beneficiary) states. The purpose of the SPVs is to carry out the bid process management and obtain various clearances/consents for the projects. Thus, the same is transferred to the successful bidder along with the SPV, who are selected through the tariff-based International Competitive Bidding (ICB). The logistic support provided by the SPV, prior to award of the project, is considered necessary - to enhance the investor’s confidence, reduce risk perception and get a good response to the competitive bidding process. Based on the above initiative of the Government of India and its implementation process, four UMPPs -Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand - were awarded to the successful bidders. Mundra UMPP and Sasan UMPP are fully commissioned and are generating electricity.

RENOVATION & MODERNIZATION OF DISTRIBUTION SYSTEM

  • The government of India launched two schemes, namely, Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) in December 2014. It provides a capital subsidy to the States for strengthening sub-transmission and distribution networks in rural areas and urban areas. Under the DDUGJY scheme, a capital subsidy is being provided for feeder separation, electrification of unelectrified villages and households, metering and system strengthening & augmentation of the distribution system in rural areas. The erstwhile scheme of RGGVY was subsumed in DDUGJY as a separate component for rural electrification in the country. Under the IPDS Scheme, a capital subsidy is provided for strengthening and augmentation of the distribution system. A capital subsidy is also provided for the metering of distribution transformers/feeders/consumers, and IT enablement in the distribution sector in the urban areas. The erstwhile Restructured Accelerated Power Development and Reform Programme (R-APDRP) scheme was subsumed in the IPDS as a separate component for IT enablement and system strengthening.

DOMESTIC AND STREET LED LIGHTING PROGRAM

  • The Ministry of Power has launched the UJALA (Unnat Jyoti by Affordable LED for All) scheme for the replacement of 770 mn incandescent domestic bulbs with energy-efficient LED bulbs in the country.
  • EESL distributes 36.69 cr LED bulbs, Installs 1.14 cr LED streetlights under UJALA; Results in cumulative energy savings of 55.32 bn kWh per year.

  • EESL installs about 1.14 cr LED streetlights under SLNP; Results in estimated energy savings of 7.67 bn kWh per year 

FUEL SUPPLY AGREEMENT

  • The Fuel Supply Agreement with Coal India Ltd. will ensure the availability of coal for power companies over the long term.

PUBLIC-PRIVATE PARTNERSHIP(PPP)

  • To reduce dependency on imported coal, a PPP policy framework is planned to be devised with Coal India Ltd. to increase coal production.

NATIONAL ELECTRICITY POLICY

  • The Government of India is planning to revise the National Electricity Policy to bring out far-reaching changes in the Power industry. This includes ensuring a cleaner atmosphere by increasing renewable generation including rooftop solar PV generation, increasing electric vehicles in cities and towns, improved power supply reliability to consumers through the smart grid. This policy would also encourage efficient utilization of resources including land and water.

UJWAL DISCOM ASSURANCE YOJANA (UDAY)

  • The Scheme "UDAY" (Ujwal DISCOM Assurance Yojana) was formulated and launched by the Government in November 2015, for the financial and operational turnaround of State-owned DISCOMs (Electricity Distribution Companies). The scheme UDAY envisages reform measures in all sectors – generation, transmission, distribution, coal, and energy efficiency. The scheme aims to reduce the interest burden, reduce the cost of power, reduce power losses in distribution and improve the operational efficiency of DISCOMs. The scheme also incentivizes the States by
  • Exempting State takeover of DISCOM debts from Fiscal Responsibility & Budget Management (FRBM) limits for two years
  • Increased supply of domestic coal
  • Coal linkage rationalization
  • Liberally allowing coal swaps from inefficient to efficient plants
  • Allocation of coal linkages to States at notified prices and additional/priority funding in schemes of the Ministry of Power and the Ministry of New & Renewable Energy, if they meet the operational milestones in the scheme.
  • The scheme also envisages that the States accepting UDAY and performing as per operational milestones will be given additional/priority funding through DDUGJY, IPDS and Power System Development Fund (PSDF) or other such schemes of the Ministry of Power and Ministry of New and Renewable Energy. These States shall also be supported with additional coal at notified prices and, in case of availability through higher capacity utilization. The States not meeting operational milestones will be liable to forfeit their claim on IPDS and DDUGJY grants.

INTEGRATED POWER DEVELOPMENT SCHEME (IPDS)* : 

  • The Integrated Power Development Scheme (IPDS) envisages strengthening of sub-transmission and distribution network including metering at all levels in urban areas. The major components of the scheme are as under: 
  • a) Strengthening of sub-transmission and distribution network 
  • b) Metering 
  • c) IT application-ERP and Customer Care Services 
  • d) Provisioning of Solar Panels 
  • e) Ongoing works of R-APDRP to be completed. 

The projects worth INR 30,692 crore has been sanctioned under IPDS, against which, INR 14,402 crore has been released towards projects and INR 206 crore released for enabling activities.

PRADHAN MANTRI SAHAJ BIJLI HAR GHAR YOJANA *

  • The government of India launched Pradhan Mantri Sahaj Bijli Har GharYojana – Saubhagya in September 2017 with the objective to achieve universal household electrification by providing electricity connections to all willing un-electrified households in rural and all poor households in urban areas across the country, by March 2019. 

GRAM UJALA PROGRAMME IN ARRAH, BIHAR *

  • This programme aims to impact India’s climate change action. If all 300 mn lights in India were replaced, the total energy savings would be 40,743 mn kWh/year, avoided peak demand of 22,743MW/year and CO2 reductions of 37 mn tons per year.

Perform Achieve and Trade (PAT) scheme

  • The scheme targets carbon emission reduction in 13 energy-intensive sectors, leads to energy savings of about 17 MTOE and results in mitigation of about 87 mn tonnes of CO2.

Commercial Auction of coal on revenue share mechanism

  • Under this scheme, total of 2 tranches have been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have been signed for 27 coal mines.

Allowed sale of excess coal production

  • The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine.
  • This is applicable for both the private and public sector captive mines.
  • With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks, which were being only partly utilized owing to limited production of coal for meeting only their captive needs.

Rolling auction

  • In order to expedite the process for conducting auction and to carryout more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines:
  • a. Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction)
  • b. New mines, if any, identified by Ministry of Coal
  • In the current III tranche of commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines.

Single Window Clearance

  • The Union government has already launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines.
  • It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approval or clearances.

Revamped Distribution Sector Scheme*

  • Ministry of Power’s flagship Revamped Distribution Sector Scheme which is aimed at improving the operational efficiencies and financial sustainability of Distribution Companies.
  • With an outlay of INR 3,03,758 crore over a period of five years from FY 2021-22 to FY 2025-26, the scheme aims to provide financial assistance to DISCOMs for modernization and strengthening of distribution infrastructure, aiming at improvement of the reliability and quality of supply to end consumers.
  • It is also proposed to provide 25 crore Smart Prepaid meters to consumers all over the country.

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Financial Support

UNION BUDGET 2022-23

  • The total budgetary allocation for FY 2022-23 towards the Ministry of Power is INR 16,074.74 cr.

TAX INCENTIVES R&D INCENTIVES

  • Industries and infrastructure sectors including the power/energy efficiency sectors with in-house R&D centers get a write-off in revenues and capital expenditure incurred on R&D.
  • A weighted tax deduction is given under section 35 (2AA) of the Income Tax Act to industry/private sponsored research programmes.
  • A weighted deduction of 200% is granted to assesses for any sums paid to a national laboratory, university or institute of technology, or specified people with a specific direction. The said sum will be used for scientific research within a programme approved by the prescribed authority.

STATE INCENTIVES

  • India offers additional incentives for industrial projects in certain states.
  • Incentives are in areas such as rebates in land cost, the relaxation of stamp duty exemption on the sale and lease of land, power tariff incentives, a concessional rate of interest on loans, investment subsidies, tax incentives, backward area subsidies and special incentive packages for mega projects.

AREA BASED INCENTIVES

  • Incentives are available for the setting up of projects in special areas like the North-east, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.
Investment Opportunities

Thermal Power Projects

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Hydro Electric Projects

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DEENDAYAL UPADHAYA GRAM JYOTI YOJANA (DDUGJY)

  • Components
  1. Separation of agriculture and non-agriculture feeders
  2. Strengthening and augmentation of sub-transmission and distribution systems including metering
  3. Rural electrification including off-grid solutions
  • Objectives
  1. Electrification of 18452 un-electrified villages by 01 May 2018
  2. Providing electricity access to 50 mn households
  • Investment Opportunities

Total Outlay: $11.67 Bn

1. System Strengthening: 

Power Transformers: 14,491 nos

Distribution Transformers: 317,068 nos 

Conductors: 869,521 km 

Energy Meters: 11 mn nos

2. Metering the un-metered

Feeder/Boundary/ DTs: 1.19 mn nos

Energy Meters: 9.99 mn nos

  • Achievements 
  1. 1227 additional villages were identified by the states for electrification in addition to 18452 un-electrified villages reported by states in 2015. Out of these 19679 villages, electrification in 18379 villages have been completed and remaining 1305 villages found to be inhabited/grazing reserve.
  2. Under the DDUGJY scheme, the country has achieved 100% electrification of villages. As 2.81 cr households were electrifying in record time.
  3. The government of India launched the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme with a total outlay of INR 75,893 cr (DDUGJY: INR 43,033 cr and RE Component: INR 32,860 crore).20

INTEGRATED POWER DEVELOPMENT SCHEME

Total outlay: $11.78 Bn with gross budgetary support of $7.39 Bn from Government of India (including erstwhile R-APDRP)

  • Components
  1. Strengthening of sub-transmission and distribution networks in the urban areas
  2. Metering of distribution transformers/feeders/ consumers in the urban areas.
  3. IT enablement of the distribution sector and strengthening of distribution network under R-APDRP.
  • Investment opportunities

1. Metering: $317.07 Mn; Sub Stations (New + Augmentation): $592.61 Mn; HT / LT Lines (New + Augmentation): $1.27 Bn; DTs (New + Augmentation): $495.23 Mn; UG Cabling (HT & LT): $339.87 Mn; Rooftop Solar / net metering: $36.30 Mn; Misc. (ABC cable, R&M, Capacitor etc): $696.76 Mn.

  • Objectives
  1. Electrification of 18452 un-electrified villages by 01 May 2018
  2. Providing electricity access to 50 mn households

 

Explore projects to invest in Thermal Power sector >

Sector Reports

Year-End- Review of Ministry of Power– 2022

Foreign Investors
  • CLP Holdings (Hong Kong)
  • GE Energy (USA)
  • AES (USA)
  • Kosep (South Korea)
  • Abellon Clean Energy (Canada)
  • GDF SUEZ (France)
Agencies
Sources
  1. “BP Statistical Review of World Energy- June 2019,” British Petroleum (BP) Website, https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2019-electricity.pdf
  2. Annual Report, Ministry of Coal-https://coal.nic.in/sites/upload_files/coal/files/coalupload/AnnualReport2019-20/Chapter2-en.pdf
  3. Annual Report, Ministry of Petroleum and Natural Gas, http://petroleum.nic.in/sites/default/files/AR_2018-19.pdf
  4. “Energy is the key driver of Socio-Economic growth’,” PIB Website: PMO, http://pib.nic.in/PressReleseDetail.aspx?PRID=1563758
  5. “Power Sector at a Glance - ALL INDIA,” Ministry of Power Website, https://powermin.nic.in/en/content/power-sector-glance-all-india 
  6. “ULTRA MEGA POWER PROJECTS,” Ministry of Power Website, https://powermin.nic.in/sites/default/files/uploads/ultra_mega_power_project.pdf
  7. “BP Statistical Review of World Energy- June 2019,” British Petroleum (BP) Website, https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2019-electricity.pdf
  8. “Energy is the key driver of Socio-Economic growth’,” PIB Website: PMO, http://pib.nic.in/PressReleseDetail.aspx?PRID=1563758
  9. Factsheet on FDI - April 2000 to December 2021, Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/sites/default/files/FDI%20Factsheet%20December%2C%202021.pdf 
  10. “Power Sector at a Glance - ALL INDIA,” Ministry of Power Website, https://powermin.nic.in/en/content/power-sector-glance-all-india
  11. All India Installed Capacity (in MW) of Power Stations, Central Electrical Authority, Ministry of Power, http://www.cea.nic.in/reports/monthly/installedcapacity/2020/installed_capacity-03.pdf
  12. “Outlay on major Schemes,” Union Budget Website, https://www.indiabudget.gov.in/doc/Budget_at_Glance/bag7.pdf
  13. Ministry of Power- Annual Report, https://powermin.nic.in/sites/default/files/uploads/MOP_Annual_Report_Eng_2018-19.pdf
  14. PIB Release, https://pib.gov.in/PressReleseDetailm.aspx?PRID=1640707#:~:text=27.60%20crores.,years%2C%20said%20Shri%20Pralhad%20Joshi.&text=The%20coal%20and%20lignite%20PSUs%20have%20planned%20to%20spend%20Rs.
  15. Annual Report, Ministry of Petroleum and Natural Gas, http://petroleum.nic.in/sites/default/files/AR_2019-20E.pdf
  16. Ministry of Coal- Monthly Report, https://coal.nic.in/sites/upload_files/coal/files/coalupload/13102020september.pdf
  17. Ministry of Power- Monthly Reporthttps://powermin.gov.in/sites/default/files/uploads/Monthly_Summary_for_the_Cabinet_concerning_Ministry_of_Power_for_the_month_of_Sep_2020.pdf
  18. PIB https://www.pib.gov.in/PressReleasePage.aspx?PRID=1670013
  19. Ministry of Power- Monthly Report, https://powermin.gov.in/sites/default/files/uploads/Monthly_Summary_for_the_Cabinet_concerning_Ministry_of_Power_for_the_month_of_Sep_2020.pdf
  20. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1684579
  21. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1684579
  22. Indian Investment Grid, https://indiainvestmentgrid.gov.in/states/arunachal-pradesh
  23. Ministry of Power, https://powermin.nic.in/sites/default/files/webform/notices/Consumers_Rules_2020.pdf
  24. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1705109
  25. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1706010
  26. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1706925
  27. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1706925
  28. Ministry of Power- Monthly Report,https://powermin.gov.in/sites/default/files/uploads/Summary_for_the_month_of_Feb_2021.pdf

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