13 May, 2015 C. No. 20/Resume No. 7/2015

13 May, 2015
C. No. 20/Resume No. 7/2015-16
To : Members of the Committee
All Members
Re : Proceedings of the Meeting
Dear Sir,
The Chamber organised a Seminar on ‘Vision for an Efficient Power Sector’ on 08 May 2015 at
The Park, Kolkata. Shri Manish Gupta, Hon’ble Minister for Power and Non-Conventional Energy
Sources, GoWB, Shri Gireesh B. Pradhan, Chairperson, Central Electricity Regulatory Commission, and
Dr. S.K. Chatterjee, Joint Chief (Regulatory Affairs), CERC addressed the Seminar.
Brief proceedings of the Seminar is enclosed for your kind perusal.
Thanking you,
Encl: Attached below
Yours sincerely,
Sukanya Basu
Assistant Secretary
Brief Proceedings of the Seminar on “Vision for an Efficient Power Sector”
on 08 May 2015
The Chamber organised a Seminar on ‘Vision for an Efficient Power Sector’ on 08 May
2015 at The Park, Kolkata. Shri Manish Gupta, Hon’ble Minister for Power and NonConventional Energy Sources, GoWB, Shri Gireesh B. Pradhan, Chairperson, Central
Electricity Regulatory Commission, and Dr.S.K. Chatterjee, Joint Chief (Regulatory
Affairs), CERC addressed the Seminar.
Shri Arun Kumar Saraf, President, MCCI expressed his concern over the issues
related to ‘Financial losses of Power Discoms’; ‘Overdrawing of power by the discoms’;
‘Pending Cases with CERC which are beyond the stipulated time’ and ‘inadequacy of
manpower of CERC’ etc. He viewed that eletricity distribution to the end consumers in
India needed reforms in order to achieve the target of reaching electricity to all by
2019. He expressed concern as presently, power generation capacity of 136 GW is stalled
in the country.
While speaking on the power situation in the State, Shri Manish Gupta stated that West
Bengal is a power surplus State with a 18% registered growth in power generation from
17.15 Million Units in 2011 to close to 21 Million Units at present and the State exports
Power to Bangladesh earning Rs 800 Crores per year and also to other States.
He said that the country is presently short on coal and it is a big issue as 200 million ton
of coal is imported every year. As our coal reserve is limited we have to look for other
options like non-conventional energy sources. He added that his government has published
a policy on renewable energy already. He mentioned few initiatives taken by the
government in this context :
 The State has undertaken generation of Solar backed up Hydro Power plant
including existing 900 MW Pump Storage Plant in Baghmundi.
 Two hydro power generation plants of 1,000 MW and 900 MW each similar to the
Purulia Pump Storage Project (PPSP) will come up at Turga and Bandakhola in
 State is doing powerbanking whereby Inter-State transaction is performed.
 Government is going to set up 500 MW Solar Park at Dadan in Midnapur and 200
MW Roof-Top Solar Power Project in Rajarhat.
Shri Gupta also mentioned that the government is seeking Rs 40,000 Crore Green Energy
Fund from Union Government to build more pump storage hydel plants in the State.
He announced that in the next 2-3 years, the power tariff is expected to be reduced
following a favourable coal block allocation and auction result in West Bengal. He
explained that previously it was an unhappy situation of buying coal from Coal India and
now it will be WBPDCL’s own Coal and WBPDCL will simply incur the raising costs and thus
the tariff might be reduced.
He expected that by June 2016, all villages would be electrified from the present 8586% coverage.
Dr. Chatterjee pointed to the issue of the Separation of Tariff Content and
Distribution; Real Time Balancing by Designing a Proper Power Market as Trading or
Exchanging platform; and explained the initiatives taken by CERC like introduction of an
Ancillory Services in terms of 24X7 power market which would fit into low budget and is
at a draft stage at National Level. For Grid Integration of Renewable energy framework,
CERC has come up with a scheduling policy.
Shri Gireesh B. Pradhan, while addressing the session mentioned that the country
requires Rs 13-14 Lac Crore investment to ensure 24X7 power for all by 2019-20 with
the current installed capacity of 270,000 MW and plan to add 88,000 MW during the
12th Five Year Plan Period.
He pointed out that in the distribution sector, investment is required in three important
segments, like electrification of un-electrified households, segregation of agriculture
feeders, system improvement for loss reduction, meter data management and IT enabled
services and all these will require total Rs.5,27,000 crore investment in the next 5 years.
He also confessed that the bedrock of Inter-State Cross-Subsidy has shattered the
Open Access mechanism as promulgated by National Electricity Act 2003. He opined that
in order to assess the true impact of cross-subsidy erosion, the first step toward cross
subsidy issue would be to determine voltage wise and or category wise cost of supply for
all states.
Shri Pradhan alarmed the members of the root causes of irritation faced by the Power
Buyers by saying ‘Financial Health of Distribution Utility is at worrysome state and he
demanded immediate attention to it.
Replying to the issue of disposal of petitions, Shri Pradhan informed that during 20042009, 400 petitions were filed which raised by four fold to 1020 petitions during 20092014 with 36% from private sector but the human resource strength, which is the
backbone for effective functioning of the Commission has remained stagnant since 2000.
In spite of this constraint, in order to expedite disposal, the CERC took a pro-active
measure to hear the cases during the first half of 2014-15 and issue suitable order.
On the issue of Transmission and Distribution Losses he said that aggregate technical
and commercial losses are 22-27% on average in India against 6-7% at International
Level. Punjab, Delhi, Maharashtra have taken some measures to decrease these losses.
He urged MCCI to carry out a detailed road map/plan and assist the State Government in
assessment of actual demand and losses and the desired quantum of power procurement.
This will help the State Government to make West Bengal state specific
recommendations for considertaion of the Union Government.
The Meeting ended with a ‘Vote of Thanks’ proposed by Shri Deepak Kumar Agarwal,
Chairman, Standing Committee on Steel, MCCI.
Sukanya Basu
(Assistant Secretary)