Hydropower%20Development

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Hydropower Development in India
Presentation by S.K. Garg Chairman Managing
Director
National Hydroelectric Power Corporation Ltd.
27th July, 2006, New Delhi
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INDIAN POWER SECTOR
INSTALLED CAPACITY THERMAL 83,272 MW
(66 ) HYDRO 32,726 MW (26
) OTHERS 10,091 MW (8 ) TOTAL
1,26,089 MW ENERGY SHORTAGE
9.3 PEAK DEMAND SHORTAGE 12.8
CAPTIVE GENERATION 14,636 MW
CONNECTED TO GRID PER CAPITA ELECTRICITY 606
kwh CONSUMPTION
As on 30.06.2006
SOURCE CEA
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PROJECTED POWER DEMAND IN INDIA(Ending XI Plan)
REQUIREMENT OF INSTALLED CAPACITY (Considering GDP growth of 8) 2,06,000 MW
EXISTING INSTALLED CAPACITY 1,26,089 MW (Hydro-32,726 MW)
LIKELY ADDITION IN X PLAN 34,000 MW (Hydro-10,000 MW)
LIKELY ADDITION IN XI PLAN 62,000 MW (Hydro-15,000 MW)
SOURCE CEA / MOP
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HYDRO POWER IN INDIA

• A) POTENTIAL ASSESSED BY CEA 1,48,701 MW
• B) INSTALLED CAPACITY DEVELOPED 32,726 MW
• C) UNDER DEVELOPMENT 14,021 MW
• D) PUMPED STORAGE POTENTIAL 94,000 MW
• E) SMALL HYDRO ( lt 3 MW) 6,782 MW
• SOURCE CEA

As on 30.06.2006
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REGION-WISE HYDRO POTENTIAL IN TERMS OF INSTALLED
CAPACITY (IN MW)
As on 30.06.2006
REGION POTENTIAL ASSESSESD POTENTIAL DEVELOPED BALANCE UNDER DEV. Balance
NORTH EASTERN 58971 1113 57858 98
NORTHERN 53395 11262 42133 79
EASTERN 10949 2497 8452 77
WESTERN 8928 6881 2047 23
SOUTHERN 16458 10968 5490 33
TOTAL 148701 32726 115975 78
SOURCE CEA Includes 5.25 MW in AN
Islands
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INDIAN HYDRO SECTOR
As on 30.06.2006
Sector Installed Capacity (MW)
Central Sector 6172 (19)
State Sector 25448 (78)
Private Sector 1106 ( 3)
Total 32726
SOURCE CEA
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HYDRO - THE PREFERRED OPTION

• ABUNDANT POTENTIAL AVAILABLE IN THE COUNTRY
• CAN LEAD TO ENERGY SECURITY
• IDEAL TO MEET PEAKING DEMAND
• IMPROVES SYSTEM STABILITY
• INFLATION FREE POWER
• ENVIRONMENT FRIENDLY
• OPENS AVENUES FOR SOCIO-ECONOMIC DEVELOPMENT OF
  REMOTE AREAS
• RENEWABLE SOURCE OF ENERGY
• COST EFFECTIVE
• HAS ADDITIONAL BENEFITS LIKE IRRIGATION, FLOOD
  CONTROL, TOURISM ETC.

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HISTORICAL REASONS FOR SLOW HYDRO DEVELOPMENT

• LONG GESTATION PERIOD
• TIME CONSUMING PROCESS FOR CLEARANCES
• MORE FOCUS ON THERMAL GENERATION
• HIGHLY CAPITAL INTENSIVE ABSENCE OF COMMITED
  FUNDS
• HYDRO POTENTIAL LOCATED IN REMOTE AREAS
• POOR FINANCIAL HEALTH OF SEBs
• TECHNOLOGY CONSTRAINTS
• INTERSTATE DISPUTES AS WATER BEING A STATE SUBJECT

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HYDROPOWER- THE REVIVAL

• ACCEPTED AS NATIONAL PRIORITY TO ARREST DECLINING
  HYDROTHERMAL MIX RATIO, DESIRABLE BEING 4060
• EMPHASIS ON HUGE UNHARNESSED HYDRO POTENTIAL IN
  THE COUNTRY ESPECIALLY NORTH EASTERN REGION WHERE
  98 IS STILL UNHARNESSED
• KEY POLICY INITIATIVES TO ACCELERATE HYDRO
  DEVELOPMENT
• RENEWED INTEREST OF INTERNATIONAL FUNDING
  AGENCIES TO SUPPORT HYDRO PROJECTS DUE TO FOCUSED
  ATTENTION ON HYDRO POWER DEVELOPMENT BY THE
  GOVERNMENT

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IMPEDIMENTS IN HYDRO DEVELOPMENT
INFRASTRUCTURAL ADMINISTRATIVE ISSUES

• WATER IS A STATE SUBJECT
• INTER-STATE DISPUTES
• LAND ACQUISITION
• INACCESSIBILITY OF THE PROJECT SITES
• LAW ORDER / MILITANCY PROBLEMS

FINANCIAL ISSUES

• SECTOR IS HIGHLY CAPITAL INTENSIVE
• 14 ROE NOT VERY ATTRACTIVE
• ABSENCE OF LONG TENURE LOANS
• HIGH RISK ELEMENT
• ADVANCE AGAINST DEPRECIATION IS DISALLOWED
• FOREIGN EXCHANGE RATE VARIATION NOT A PASS THRU
  IN TARIFF

(Cont...)
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ISSUES IN HYDRO DEVELOPMENT
ENVIRONMENTAL ISSUES

• REHABILITATION RESETTLEMENT
• ENVIRONMENT FOREST CLEARANCE

TECHNICAL ISSUES

• PREPARATION OF BANKABLE DPRs
• GEOLOGICAL UNCERTAINITIES
• DEARTH OF COMPETENT CONTRACTING AGENCIES

(Cont.)
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INITIATIVES REQUIRED IN THE HYDRO SECTOR
INFRASTRUCTURAL ADMINISTRATIVE ISSUES

• EFFORTS TO ARRIVE AT CONSENSUS FOR DECLARING
  WATER A CENTRAL SUBJECT FOR OPTIMUM UTILIZATION
  DEVELOPMENT OF NATURAL RESOURCES. AT LEAST THE
  RUN OF THE RIVER SCHEMES BE DELINKED FROM STATE
  SUBJECT
• INFRASTRUCTURE COST TO BE SHARED BY GOVERNMENT
  DEVELOPER
• SECURITY COST TO BE BORNE BY THE GOVERNMENT
• 12 FREE POWER PROVISION TO BE REVIEWED

(Cont.)
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INITIATIVES REQUIRED IN THE HYDRO SECTOR
FINANCIAL ISSUES

• LONG TENURE (20-25 YRS.) DEBT FINANCING TO BE
  MADE AVAILABLE
• BENEFITS UNDER MEGA POWER POLICY TO BE MADE
  APPLICABLE TO PROJECTS OF CAPACITY 250 MW ABOVE
• INCREASE RATE OF RETURN ON EQUITY VIS-À-VIS
  THERMAL TO ACCOUNT FOR CAPITAL INTENSIVE NATURE,
  RISKS INVOLVED.
• EARLY IMPLEMENTATION OF DIFFERENTIAL TARIFF FOR
  PEAK AND OFF-PEAK HOURS.
• ADVANCE AGAINST DEPRECIATION TO BE CONTINUED
• CONTINUE PASSING OF FOREIGN EXCHANGE RATE
  VARIATION THROUGH TARIFF
• EXPLORE ORGANISATION WISE POOLED TARIFF CONCEPT

(Cont...)
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INITIATIVES REQUIRED IN THE HYDRO SECTOR
ENVIRONMENTAL ISSUES

• SIMPLIFY LAND ACQUISITION PROCEDURE AMENDMENT
  TO LAND ACQUISITION ACT FOR COMPULSORY
  ACQUISITION OF LAND IMMEDIATELY ON SANCTION OF
  THE PROJECT
• DEFINED SOLUTIONS FOR RESETTLEMENT AND
  REHABILITATION ASPECTS INVOLVING GOVERNMENT,
  PROMOTERS, FUNDING INSTITUTIONS ETC
• MOEF CLEARANCE SHOULD BE FINAL AND BINDING TO
  STATES

TECHNICAL ISSUES

• PREPARATION OF BANKABLE DPRS THROUGH CAPABLE
  ORGANIZATIONS
• CREATION OF REVOLVING FUND FOR PREPARATION OF
  DPRs
• INDUCTION OF LATEST TECHNIQUES FOR SITE
  INVESTIGATION ENGAGEMENT OF REPUTED CONSULTANTS
  FOR COMPLEX PROJECTS
• TURNKEY EXECUTION ON MERIT THROUGH
  INTERNATIONALLY REPUTED CONTRACTING AGENCIES

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NHPC IN INDIAN HYDRO SECTOR
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PROFILE

• POWER STATIONS UNDER OPERATION 10 Nos. (3,755
  MW)
• PROJECTS UNDER CONSTRUCTION 11 Nos. (5,623 MW)
• X PLAN (2002-07) PROJECTS 05 Nos. (2,480 MW)
• ALREADY COMMISSIONED 03 Nos. (1,580 MW)
• XI PLAN (2007-12) PROJECTS 16 Nos. (6297 MW)
  
• XII PLAN (2012-17) PROJECTS 12 Nos. (12,080
  MW)
• LIKELY CAPACITY BY 2012 gt 10,000 MW

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FINANCIAL HIGHLIGHTS
(As on 31.03.2006)
Rs./ Cr.

• AUTHORISED CAPITAL 15,000
• PAID UP CAPITAL 10,600
• NET WORTH 15,300
• VALUE OF ASSETS 23,700
• TURNOVER 1714
• NET PROFIT 743
• DIVIDEND PAID (2005-06) 223
• AVG. RATE OF BORROWING 6
• CREDIT RATING BY AAA FOR DOMESTIC

INTERNATIONAL AGENCIES
BB FOR INTERNATIONAL BORROWING
Interim Dividend of Rs 64 Crs paid
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POWER STATIONS UNDER OPERATION
S.No. Name of the Power Stations Name of the Power Stations Installed Capacity (MW) Year of Comm. Tariff (P/Kwh)
1 BAIRASIUL (HP) BAIRASIUL (HP) 180 1981 73
2 LOKTAK (Manipur) LOKTAK (Manipur) 105 1983 103
3 SALAL (JK) SALAL (JK) 690 1987 / 1996 63
4 TANAKPUR (Uttaranchal) TANAKPUR (Uttaranchal) 120 1992 115
5 CHAMERA I (HP) CHAMERA I (HP) 540 1994 130
6 URI (JK) URI (JK) 480 1997 209
7 RANGIT (Sikkim) RANGIT (Sikkim) 60 1999 178
8 CHAMERA-II (HP) CHAMERA-II (HP) 300 2004 256
9 DHAULIGANGA-I (Uttaranchal) DHAULIGANGA-I (Uttaranchal) 280 2005 183
TOTAL TOTAL 2755
JOINT VENTURE JOINT VENTURE JOINT VENTURE JOINT VENTURE
10 10 INDIRA SAGAR (MP) 1000 2004 / 2005 160
GRAND TOTAL 3755
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X PLAN PROJECTS
Plan Total Hydro Capacity Addition (MW) Capacity Addition By NHPC (MW) share of NHPC
X PLAN (2002 2007) 10,174 2,480 24
S. No S. No Projects Installed Capacity (MW) Scheduled Year of Comm. Status
1. 1. CHAMERA-II (HP) 300 2003-04 Commissioned
2. 2. DHAULIGANGA (UA) 280 2005-06 Commissioned
3. 3. DULHASTI (JK) 390 Nov 06 Under construction
4. 4. TEESTA-V (SIKKIM) 510 Feb 07 Under construction
TOTAL TOTAL TOTAL 1480
JOINT VENTURE JOINT VENTURE JOINT VENTURE JOINT VENTURE JOINT VENTURE JOINT VENTURE
5. INDIRA SAGAR (MP) INDIRA SAGAR (MP) 1000 2004-05 Commissioned
GRAND TOTAL GRAND TOTAL GRAND TOTAL 2480
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XI PLAN PROJECTS
Plan Total Hydro Capacity Addition (MW) Capacity Addition By NHPC (MW) share of NHPC
XI PLAN (2007- 12) 15,020 6,297 42
S. No Projects Installed Capacity (MW) Scheduled Year of Comm. Status
UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION UNDER CONSTRUCTION
1 SEWA-II (JK) 120 May 08 Under Construction
2 TEESTA L/D III (WB) 132 Mar 08 Under Construction
3 PARBATI-II (HP) 800 Sep 09 Under Construction
4 TEESTA L/D IV (WB) 160 Sep 09 Under Construction
5 URI-II (JK) 240 Nov 09 Under Construction
6 CHAMERA-III (HP) 231 Aug 10 Under Construction
7 SUBANSIRI LOWER (Ar. P) 2000 Sep 10 Under Construction
8 PARBATI ST- III (HP) 520 Nov 10 Under Construction
SUB TOTAL 4203
9 OMKARESHWAR(JV) (MP) 520 Feb 08 Under construction
Cont
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XI PLAN PROJECTS
Contd
S.No. S.No. Projects Installed Capacity (MW) Scheduled Year of Comm. Status
NEW PROJECTS NEW PROJECTS NEW PROJECTS NEW PROJECTS NEW PROJECTS NEW PROJECTS
10 NIMMO-BAZGO (JK) NIMMO-BAZGO (JK) 45 2010-11 CCEA cleared
11 CHUTAK (JK) CHUTAK (JK) 44 2010-11 CCEA cleared
12 KOTLI BHEL IA (Uttaranchal) KOTLI BHEL IA (Uttaranchal) 195 2011-12 DPR submitted on 03.01.2006
13 KOTLI BHEL IB (Uttaranchal) KOTLI BHEL IB (Uttaranchal) 320 2011-12 DPR submitted on 30.01.2006
14 KOTLI BHEL II (Uttaranchal) KOTLI BHEL II (Uttaranchal) 530 2011-12 DPR submitted on 30.03.2006
15 LAKHWAR VYASI (Uttaranchal) LAKHWAR VYASI (Uttaranchal) 420 2011-12 DPR submitted on 30.03.2006
16 BAV-II (Maharashtra) BAV-II (Maharashtra) 20 2010-11 DPR submitted on 31.03.2006
GRAND TOTAL GRAND TOTAL GRAND TOTAL 6297
CCEA in meeting held on 02.06.2006 has cleared
the project, sanction letter is awaited.
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FUNDING PLAN
Rs. in Cr.
X PLAN (Estimated) XI PLAN (Estimated) TOTAL
GBS 5,521 14,051 19,572
IEBR 6,163 33,542 39,705
TOTAL 11,684 47,593 59,277
Internal Extra Budget Resources (IEBR)
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RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY)

• NHPC HAS BEEN ENTRUSTED WITH RURAL
  ELECTRIFICATION WORKS UNDER RAJIV GANDHI GRAMEEN
  VIDYUTIKARAN YOJANA IN THE FOLLOWING AREAS WITH
  TOTAL ESTIMATED COST OF RS. 1550 CRORES
• PURULIA DISTRICT OF WEST BENGAL,
• EAST CHAMPARAN, WEST CHAMPARAN, DARBHANGA,
  SITAMARHI, SHEOHAR MADHUBANI DISTRICT OF
  BIHAR,
• DURG, KAWARDHA, RAJNANDGAON, DHAMTARI, KANKER,
  RAIPUR MAHASAMUND DISTRICT OF CHHATTISGARH
• KATHUA, JAMMU, UDHAMPUR, KARGIL, SRINAGAR,
  BADGAM, LEH DISTRICT OF JK
• RAYAGADA, GANJAM, PHULBANI, BOUDH, PURI AND
  GAJAPATI DISTRICT OF ORISSA
• - NHPC SHALL GET AGENCY FEE AS 12 OF THE
  SANCTIONED COST

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• INDIA HAS HUGE HYDRO POTENTIAL PROVIDING AMPLE
  OPPORTUNITY FOR ALL THE PLAYERS. GOVERNMENTS
  FOCUSED ATTENTION AND EXTRA THRUST TOWARDS HYDRO
  SECTOR MAY CONTINUE SO AS TO ACHIEVE THE DESIRED
  HYDROTHERMAL MIX IN THE COMING YEARS.

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THANK YOU