A.S.

Bakshi
Chief Engineer (Planning)
Central Electricity Authority
2
 A BEGINNING - INTERNATIONAL
CONCLAVE ON KEY INPUTS, July 2007
• International Conclave on “Key Inputs for
Accelerated Development of Indian Power Sector
for 11th Plan and Beyond” organized by MoP and
CEA on 4th & 5th July 2007.
• Major Issues identified :
– Manufacturing Capability of Main Plant and Balance of Plant
Equipment to be commensurate with required capacity
addition.
– Inadequate Construction and Erection Agencies/ Machinery.
– Non-availability of Adequate Fuel and Key material.
– Inadequate Transportation facilities for Equipment and Fuel.
– Shortage of trained Manpower.
– Slow process of decision making and cumbersome payment 3
procedure adopted by Utilities.
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN
1. Thermal and Hydro Main Plant Equipment - Need to augment existing
indigenous manufacturing facilities and create additional capacity
STATUS
• BHEL augmentation of manufacturing capacity
 To 10,000 MW/annum achieved by Dec 2007.
 To 15,000 MW by Dec. 2009 under progress (10,000 MW/annum for large
sized boilers and TGs).
 Has collaboration with Alstom and Siemens for manufacture of super critical
boilers and turbo-generators. In third phase by Dec 2011, proposed to augment
capacity to 20,000 MW.

• JVs
 L&T/ MHI – Boilers (4000 MW/annum) , TGs (4000 MW).
 Bharat Forge/ Alstom- TGs (5000 MW).
 JSW-Toshiba - TGs (3000 MW).
 GB Eng.-Ansaldo- Boilers (2000 MW).

• Proposed Bulk tendering of 11X 660 MW units with mandatory indigenous

manufacturing.
4
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN
2. BHEL to develop ancillary units / vendors- commensurate with own
enhanced capacity. To ensure that deliveries are complete and
sequential.

STATUS
BHEL has enhanced vendor list.

3. Critical long lead inputs - Advance procurement action and to

encourage indigenous industry to set up capacity in these areas.

STATUS
• Advance approval obtained for 27 sets (250 MW size), 21 sets(500 MW size), 9
sets(660 MW size) totalling to 23,000 MW for long lead items for which advance
procurement action being taken by BHEL.
• Some new players also have plans to enter in these areas ( L&T and Bharat
Forge).
• BHEL, Hardwar taken Initiatives including outsourcing of finished machined
castings from Indian sources and finished rotors from foreign countries.
(Machine castings outsourced 42 (in 2009-10) and 48 (2010-11)
5
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN
4. Need to develop more - vendors for certain BoPs, adequate erection and
construction agencies/Equipment and Engineering Consultants for generation
and transmission.

STATUS
• Advised major suppliers like BHEL to procure adequate construction machinery and
not to depend on leased machines.

5. Promote entry of new entrants - Stringent qualifying requirements for

vendors to be reviewed by Utilities.
STATUS
• Qualifying requirements of Main Plant Equipment reviewed and Utilities advised.
• Qualifying requirements for BoP vendors reviewed and Utilities advised.

6. Indigenous manufacturing capacity - for 765 kV transmission equipment,

CRGO & upgradation of testing facilities.
STATUS
• Committee formed to look into requirement of CRGO and discussions with
manufacturers.
• Some companies evinced interest in manufacturing CRGO.
• Existing manufacturers augmented their capacity.
6
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN

7. More agencies for turnkey execution of distribution projects.

STATUS

• APDRP - bringing concept of turn key execution.

• Number of turn key contractors came in the market, no problems expected
in future.

8. IT based project management and monitoring to be introduced at project

site.

STATUS
• CEA suggested IT based monitoring of projects. MOP also appointed
independent consultants for monitoring Generation and Transmission
projects and reporting bottlenecks in implementation.
7
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN

9. Project developer/contractor to adopt ITI, coordinate training activities for

ITI; create accredited training institutions for specialized skills.
STATUS

• 38 ITIs already adopted, 13 ITIs being adopted by CPSUs, 12 ITIs have

been/ are being adopted by Private Utilities.
• NPTI taking action on creation of accredited training institutions for
specialized skills.
10. Quick implementation of Recommendations of National Training Policy – 1.5%
of salary budget to increase to 5% for HRD.
STATUS

• 7 Power Utilities already making provision of atleast 1.5% of salary budget.

Further efforts being made.

8
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN
11. Use of energy efficient equipment to be promoted.
STATUS
• BLY launched in Feb 2009. 5 Tripartite Agreement signed
between BEE, distribution companies and CFL suppliers.
• Pilot project in Vizag, AP registered, distribution of lamps
commenced.
• 13 States initiated process by selecting BEE empanelled
CFL supplier.
• Estimated 400 million light points converted to CFLs
resulting in 6000-8000 MW peak load.
12. Standardization of specifications.
STATUS
• CEA prepared standard specifications for Boilers and
Turbines of 500 MW and above. 9
MAJOR RECOMMENDATIONS OF CONCLAVE
AND ACTION TAKEN
13. Transportation facilities including port handling capacity facilities
for equipment and fuel to be enhanced.
STATUS
 GoI formed Fuel Infrastructure Committee under Member (Energy), Planning
Commission.

14. Adequate fuel availability on priority for 11th Plan projects.

STATUS

• Fuel Linkages for all 11th Plan projects provided. Timely supply of
fuel to be monitored and wherever coal blocks allotted, the
impediments in their development need to be removed.
• A number of 12th Plan projects also given fuel linkages/coal blocks.

10
FOLLOW-UP OF INTERNATIONAL CONCLAVE
ON KEY INPUTS – JULY 2007
 Task Force formed comprising MoP, CEA and CII to
coordinate with industry regarding various inputs for
power sector. CII to organize dialogue with specific
industry groups and interested entrepreneurs.
 Task Force formed 7 Nos. Specialised Subgroups
formed to assess 11th Plan requirement and
constraints being experienced and suggestions for
removing them.
 Report of Task Force on CEA Website.
 Regional level meetings – interactions with industry to
sensitize them of huge requirement of Power Sector
and to encourage new vendors.
11
AUGUST 2009 - INTERNATIONAL CONCLAVE
ON KEY INPUTS FOR 12th PLAN
 To review progress made in 11th Plan and to assess impact of
various measures adopted as follow up of earlier Conclave in
2007.
 Removing constraints in slow project implementation. To
discuss measures to hasten the removal of these constraints.
 To sensitize Industry about capacity addition being planned for
12th and 13th Plans, accordingly the huge requirement of
Equipment and Material.
 Booklet prepared by CEA estimating requirement of Equipment,
material, funds and Manpower for 12th and tentative quantities for
13th Plan being circulated during Conclave.
THE WAY FORWARD….

 A new Task Force with specialised Subgroups to be formed for

12th Plan.
 Regional Meetings to be held with Utilities and Industry. 12
13
 DEMAND SUMMARY OF ALL INDIA
FORECAST
(AS PER 17th EPS REPORT)

2500 350
298
300
2000
218 1915 250
1500 200
GW

153
BU

1392
1000 150
100
969
100
500 690
50

0 0
2006-07 10th 2011-12 11th 2016-17 12th 13th Plan
Plan End (actual) Plan End plan End

Energy Requirement (BU) Peak Load (GW)

14
INSTALLED CAPACITY AS ON 31.07.2009

INSTALLED CAPACITY TYPE-WISE

R.E.S., 13242,
9%
HYDRO,
NUCLEAR, 36917, 24%
4120, 3%

THERMAL,
96794, 64%

TOTAL:1,51,073 MW
 11th PLAN CAPACITY ADDITION
TARGET
NUCLEAR, 3,380,
GAS/LNG 4% HYDRO, 15,627,
6,843 20%
9%

LIGNITE, 2,280, 3%

COAL, 50,570, 64%

Total: 78,700 MW
16
11th PLAN CAPACITY ADDITION BEING
MONITORED- (80,610 MW)
CAPACITY UNDER EXECUTION - 80,610 MW
NUCLEAR HYDRO
3380 15507
4% 19%

THERMAL
61723
77% 17
INSTALLED CAPACITY FROM RENEWABLES
(ACTUAL & LIKELY)

18
STATUS OF IMPLEMENTATION OF 11th PLAN

-16,395 MW (20%) capacity already commissioned till date.

-64,215 MW (80%) under construction i.e. orders placed and work is

in progress.

-In addition to above, 12,000 MW Captive Power Plants are under

execution, against which 2700 MW has been commissioned and
balance under construction.

-Against target of 14,000 MW from Renewables, 5482 MW

commissioned as on 31.03.09

-Coal linkages have been provided to all thermal projects. A capacity of

14,507 MW is scheduled for commissioning during 2009-10.

- Besides, projects aggregating to 32,000 MW capacity for

commissioning during the 12th Five Year Plan are also under
19
execution.
STATUS OF IMPLEMENTATION OF 11th
PLAN
• 2007-08
Target – 12039 MW; Achievement – 9263 MW

• 2008-09
Revised Target – 7530 MW; Achievement – 3454 MW

• 2009-10
Target – 14507 MW ; Achievement till date– 3678 MW

20
STATUS OF IMPLEMENTATION OF 11th
PLAN
• Reasons for delay in 11th Plan projects

Delay in placement of orders - mainly Civil Works

& BOPs.
 Delay and non-sequential supply of material for
Main Plant and BoPs.
Shortage of skilled manpower for erection and
commissioning.
Contractual disputes.
 Inadequate deployment of construction
machinery.
Shortage of fuel (Gas & Nuclear).
 Delay in Land Acquisition.
Delay in creation of infrastructure facilities. 21
 ORDERS FOR MAIN PLANT EQUIPMENT
11th PLAN (Figures in MW)

MAIN PLANT THERMAL HYDRO NUCLEAR TOTAL

EQUIPMENT
SUPPLIER
BHEL 36,531 6,017 500 43048
(54%)
OTHERS 25,192 9,490 2,880 37562
(46%)
TOTAL 61,723 15,507 3,380 80,610

Out of above, capacity ordered on Chinese Main Plant

Suppliers- 16,419 MW

All Orders placed for 11th Plan Main Plant Equipment 22

STATUS OF BOPs FOR 11th PLAN PROJECTS
Name of the system BOPs required for Orders Orders yet to
projects under placed (Nos.) be placed
const. (Nos.) (Nos.)
Coal Handling System 68 57 11
Ash Handling System 69 59 10
DM Plant 69 57 12
Cooling Towers 145 126 19
Chimneys 117 104 13
Fuel Oil System 71 59 12
PT Plant 76 64 12
Total 615 526 89

23
11th PLAN STATUS OF TRANSMISSION
LINES

TRANSMISSION LINES UNIT Target Upto Existing

11th Plan March 2009
March 2012

765 kV Ckm 7850 3118

HVDC+/-500 kV Ckm 7432 7172

400 kV Ckm 125000 89496

230/220 kV Ckm 150000 122960

Total Transmission lines Ckm 290282 222746

24
 11th PLAN STATUS OF
TRANSFORMATION CAPACITY
SUBSTATIONS UNIT Target upto Existing
11th Plan, March,09
March, 2012
HVDC Terminal MW 11,200 8,700
Capacity
765 kV MVA 53,000 4500

400 kV MVA 1,45,000 1,11,202

230/220 kV MVA 2,30,000 1,77,190

Total-AC Substation MVA 4,28,000 2,92,892

Capacity 25
 11th PLAN STATUS OF INTER-REGIONAL
TRANSMISSION CAPACITY (MW)
INTER REGION Planned, Existing,
Till March, 2012 March,2009

ER-SR 3,630 3,630

ER-NR 12,130 6,330
ER-WR 6,490 2,990
ER-NER 2,860 1,260
NR-WR 4,220 3,220
WR-SR 2,720 1,720
NER/ER-NR/WR 6,000 0
TOTAL 38,050 19,150
26
 SUMMARY OF 12th PLAN CAPACITY ADDITION
REQUIRMENT– 1,00,000 MW

NUCLEAR,
HYDRO,
4,800MW,
20,000MW,
4.8 %
20%

THERMAL,
75,200MW,
75.2%

• Thermal – 75,200 MW
• About 32,000 MW already under construction
TENTATIVE DETAILS OF 12th PLAN
CAPACITY ADDITION

• THERMAL:
– No. of Projects: 70
– No. of Units : 148

• HYDRO:
– No. of Projects: 87
– No. of Units : 340

• NUCLEAR:
– No. of Projects: 3
– No. of Units : 6

28
LOCATION WISE DTAILS OF 12th PLAN
SHELF OF THERMAL PROJECTS

Pit Head 50,825 MW

Load Centre 35,915 MW
Coastal 25,660 MW
Total 1,12,400 MW

29
 TENTATIVE ESTIMATED REQUIREMENT OF BOPs
FOR
12th PLAN THERMAL PROJECTS
Name of system BOP Requirement

Coal Handling System 148

Ash Handling System 148

DM Plant 211

Cooling Towers 218

Chimneys 77

Fuel Oil System 148

30
PT Plant 160
 ESTIMATED PHASING OF FUND REQUIREMENT
FOR GENERATION DURING 12th PLAN

(Figures in Rs. Crore)

TYPE 2012-13 2013-14 2014-15 2015-16 2016-17 TOTAL

HYDRO 21,857 23,694 25,058 27,136 28,904 1,26,649

THERMAL 76,367 66,905 62,701 61,867 62,828 3,30,668

NUCLEAR 5,753 6,955 7,443 8,255 9,360 37,766

TOTAL 1,03,977 97,554 95,202 97,258 1,01,092 4,95,083

31
ESTIMATED TOTAL FUND REQUIREMENT
DURING 12th PLAN
(Figures in Rs. Crore)

Generation 4,95,083

Transmission 2,40,000

Distribution 4,00,000

TOTAL 11,35,083

32
RECOMMENDED CAPACITY ADDITION
DURING 13th PLAN (2021-22)

Nuclear,
8,000MW,
8% Hydro,
31,500MW*,
31.5%

Thermal,
60,500MW, TOTAL-1,00,000 MW
60.5%

* Including 7000 MW Imports from Neighbouring Countries

34
 CRITICAL ISSUES FOR DISCUSSION IN
CONCLAVE
• Statutory clearances need to be obtained early and
orders for 12th Plan Capacity need to be placed in 11th
Plan itself.

• Promoting indigenous manufacturing of Boilers and

Turbines.

• Manufacturers of Main Plant to develop ancillary units/

vendors commensurate with capacity addition,
deliveries to be sequential.

• Advance procurement action for long lead items like

35
Forgings and castings.
 CRITICAL ISSUES FOR DISCUSSION IN
THE CONCLAVE
• Need to attract more vendors in BOP.

• In view of acute shortage of Erection/

Commissioning Agencies for executing Civil
and Mechanical works, to discuss how to attract
more agencies.

• Improvement of infrastructural facilities to speed

up project implementation .
36
 CRITICAL ISSUES FOR DISCUSSION IN
THE CONCLAVE
• IT based monitoring for projects – ways to achieve this.

• Major EPC Contractors should necessarily have construction

machinery of their own and not leased ones. Also to play a
proactive role in building of large skilled manpower.

• Transportation Facilities.

• Standardization: This would help in reducing design,

engineering and approval time for drawings thus reducing
construction period of power plants.
37
 CRITICAL ISSUES FOR DISCUSSION IN
THE CONCLAVE
• CEA has prepared standard specifications in September 2008
for Boilers and Turbine – Generators of 500 MW and above.

• Latest technologies need to be adopted to optimize on the use

of Land and Water. Promoting new technologies with reduced
water requirement.

• Working Group has prepared Draft Model Contract Documents

for Hydro Power Plants and it is under discussion with all stake
holders. Ambiguities in the Contract Documents often delay
Projects and hence need consideration.

• Development of Renewable Energy Sources including Solar

38

Technology.
 CRITICAL ISSUES FOR DISCUSSION IN THE
CONCLAVE
• Co-Generation through indigenous Gas with combined cooling
also needs to be encouraged for efficient use of Gas.

• Financial Issues: The estimated Fund Requirement for 12th

Plan is about Rs. 11 Lakh Crore. Ways and means to arrange
for this requirement.

• Single Nodal Agency to be appointed in each state which shall

be responsible for Integrated long-term power planning of the
State.
• Fuel Supply Issues:
– Development of Captive blocks to meet requirement of new projects.
– Clearances i.e. MOEF, Forest.
– Availability of coal from indigenous sources.
39
– Allocation of gas.
 CRITICAL ISSUES FOR DISCUSSION IN THE
CONCLAVE

– Development of specialized Ports and Jetties well equipped to handle

coal.
– Development of adequate Roads, Railways and Ports for transportation
of Coal (Indigenous and imported) to the power projects.
– Acquisition of Energy assets abroad by CPSUs/ Industry.

- Latest Technology Options:

• Need to develop a Road Map for incentivising efficient technologies

in Generation, Transmission and Distribution.

• Technologies for minimizing consumptive water requirement by

adopting Air Cooled Condensers and Hybrid Systems for Cooling at
Thermal Power Stations, Committee by CEA.

40
 CRITICAL ISSUES FOR DISCUSSION IN THE
CONCLAVE

• Difficulties faced by Project Developers:

– Acquisition of Land.
– Obtaining of Statutory Clearances/ Approvals.
– Obtaining of Transmission Access/ Open Access.
– Fuel and Water Linkages.
– Signing of PPAs.
– Arranging Finance for the Projects.

41