A Parliamentary panel has asked the government to make a comprehensive plan to fully meet peak power demand apart from ad hoc arrangements in view of the projected high electricity demand of 230 GW in April this year. The power ministry has taken many steps to meet the unprecedented high demand for power during this summer season like the direction for all imported coal-based power plants to run at full capacity from March 16, 2023, to June 15, 2023.
Besides the ministry has also asked domestic coal-based thermal plants to import coal for blending it with domestic dry fuel to avoid shortages.
In its 35th report on demand for grants for 2023-24 of Ministry of Power, the Parliamentary Standing Committee on Energy noted that the ministry has stated that they are expecting a peak of 2.30 lakh Mega Watt (230GW) during April 2023, therefore, necessary arrangements including running of gas-based power stations have been made to meet the peak demand.
However, it observed that the instances of shortages in the supply of power despite having more than 4 lakh MW of installed generation capacity, is a cause of concern for the Committee.
It recommended that “apart from making ad hoc arrangements to meet the peak demand, there should be comprehensive planning to fully meet the peak as well as the energy demand in the country by optimal utilization of the generation resources.”
It also hoped that the endeavour of the Ministry to achieve 24×7 power supply in the country will be fructified sooner than later.
About the New Electricity Policy, it stated that the policy serves as a beacon light for the Power Sector as a whole and lays a coherent trajectory for its future growth and development.
It suggested that the new Electricity Policy may be finalized and notified at the earliest.
The panel noted that National Power Training Institute (NPTI) has submitted that there are areas such as Cyber Security, Smart Distribution Sector, etc. where the shortage of trained manpower is being felt.
The committee opined that there is a need for a thorough review of the mandate and functioning of NPTI to rediscover its role in the rapidly changing Power Sector scenario.
Their budgetary allocations and performance should correspond to the ensuing requirements, it suggested.
The panel noted that there are 10 States/Union Territories where Aggregate Technical & Commercial (AT&C) losses, instead of decreasing, have rather increased during the last five years.
In Maharashtra, the AT&C losses which were 14.38 per cent in 2017-18 have jumped to 26.55 per cent in the year 2020-21.
Similarly, Chandigarh was having only 4 per cent AT&C losses in 2017-18 but it increased to 11.89 per cent in 2020-21.
In Nagaland and Jammu & Kashmir, AT&C losses are as high as 60 per cent.
These figures do not augur well for the aim of the Government to contain AT&C losses in the country to the level of 12-15 per cent, it stated.
It suggested that the ministry should urgently find out the reasons for the increase in AT&C losses in these States and help the concerned States/DISCOMs to make customized plans to arrest deterioration of the condition.
The RDSS ( Revamped Distribution Sector Scheme) Scheme envisages the installation of 25 crore Smart Meters at consumer, DT, and feeder level by the year 2025-26.
Smart metering projects are envisaged to be implemented in Design, Build, Finance, Operate and Transfer (DBFOT) mode through Public-Private Partnership (PPP).
It noted that so far only 70 lakh Smart Meters have been installed and out of this, only 10 lakh are Pre-Paid Meters.
Considering the present pace of installation of Smart Meters, the target of installation of 25 crore Smart Meters by the year 2025 seems to be a herculean task, it pointed out.
It suggested that the ministry should ensure that there is no constraint in the supply of technologically updated and good quality Smart Meters in the country.
It noted that the fund utilization by the Ministry of Power during the (quarter) Qtr.1, Qtr.2, Qtr.3 and Qtr.4 of fiscal 2022-23 have been 8.78 per cent, 24.92 per cent, 20.2 per cent and 4.81 per cent (up to January 31, 2023) of the BE (budget estimate) of Rs 16,074.74 crore.
Even as per the Revised Estimate of Rs 13,106.58 for the year 2022-23, they still have a balance of Rs. 3,667.37 crore (28 per cent of RE) as of January 31, it noted.
It also noted that the ministry during the year 2021-22 also had utilized as much as 63.5 per cent of their BE and 52.8 per cent of RE in the last Qtr.4 contrary to laid out guidelines.
It opined that the disciplined quarterly utilization of fund especially in the first quarter greatly helps in optimum utilization of fund allocated for the financial year without resorting to ‘March Rush’ at the end of the fiscal, which may impair the implementation of Programmes/Schemes.
Ministry of Finance, Department of Economic Affairs has prescribed that each Ministry/Department shall prepare the Monthly/Quarterly (Plan).
It has also been stated that not more than 33 per cent and 15 per cent expenditure of Budget Estimates (BE) shall be permissible in the last quarter and last month of the financial year respectively.
