Hydropower DevelopmentHydropower Development
in Indiain India
27th July, 2006, New Delhi
National Hydroelectric Power Corporation Ltd.
Presentation Presentation
byby
S.K. GargS.K. GargChairman & Managing DirectorChairman & Managing Director
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INDIAN POWER SECTOR 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)PROJECTED POWER DEMAND IN INDIA(Ending XI Plan)
SOURCE: CEA / MOP
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)
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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 ( < 3 MW) : 6,782 MW
SOURCE: CEA
HYDRO POWER IN INDIAAs on 30.06.2006
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REGION-WISE HYDRO POTENTIALIN TERMS OF INSTALLED CAPACITY (IN MW)
SOURCE : CEA * Includes 5.25 MW in A&N Islands
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
As on 30.06.2006
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INDIAN HYDRO SECTOR INDIAN HYDRO SECTOR
As on 30.06.2006
SOURCE: CEA
Sector Installed Capacity (MW)
Central Sector 6172 (19%)
State Sector 25448 (78%)
Private Sector 1106 ( 3%)
Total 32726
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HYDRO - THE PREFERRED OPTIONHYDRO - 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 DEVELOPMENTHISTORICAL 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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• ACCEPTED AS NATIONAL PRIORITY TO ARREST DECLINING HYDRO:THERMAL MIX RATIO, DESIRABLE BEING 40:60
• 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
HYDROPOWER- THE REVIVAL HYDROPOWER- THE REVIVAL
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IMPEDIMENTS IN HYDRO DEVELOPMENTIMPEDIMENTS IN HYDRO DEVELOPMENT
(Cont...)
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
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REHABILITATION & RESETTLEMENT
ENVIRONMENT & FOREST CLEARANCE
ISSUES IN HYDRO DEVELOPMENTISSUES IN HYDRO DEVELOPMENT
(Cont.…)
ENVIRONMENTAL ISSUES
PREPARATION OF BANKABLE DPRs
GEOLOGICAL UNCERTAINITIES
DEARTH OF COMPETENT CONTRACTING AGENCIES
TECHNICAL ISSUES
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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
INITIATIVES REQUIRED IN THE HYDRO SECTORINITIATIVES REQUIRED IN THE HYDRO SECTOR
(Cont.…)
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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
INITIATIVES REQUIRED IN THE HYDRO SECTORINITIATIVES REQUIRED IN THE HYDRO SECTOR
(Cont...)
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INITIATIVES REQUIRED IN THE HYDRO SECTORINITIATIVES 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
NHPC IN
INDIAN HYDRO SECTOR
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PROFILEPROFILE
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 : > 10,000 MW
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FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
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
Rs./ Cr.
INTERNATIONAL AGENCIES & ‘BB+’ FOR INTERNATIONAL BORROWING
* Interim Dividend of Rs 64 Crs paid
(As on 31.03.2006)
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POWER STATIONS UNDER OPERATIONPOWER STATIONS UNDER OPERATION
S.No. Name of the Power StationsInstalledCapacity
(MW)
Year of
Comm.
Tariff
(P/Kwh)
1 BAIRASIUL (HP) 180 1981 73
2 LOKTAK (Manipur) 105 1983 103
3 SALAL (J&K) 690 1987 / 1996 63
4 TANAKPUR (Uttaranchal) 120 1992 115
5 CHAMERA – I (HP) 540 1994 130
6 URI (J&K) 480 1997 209
7 RANGIT (Sikkim) 60 1999 178
8 CHAMERA-II (HP) 300 2004 256
9 DHAULIGANGA-I (Uttaranchal) 280 2005 183
TOTAL 2755
JOINT VENTURE
10 INDIRA SAGAR (MP) 1000 2004 / 2005 160
GRAND TOTAL 3755
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X PLAN PROJECTS X PLAN PROJECTS
S.No
Projects Installed Capacity(MW)
Scheduled Year of Comm.
Status
1. CHAMERA-II (HP) 300 2003-04
Commissioned2. DHAULIGANGA (UA) 280 2005-06
3. DULHASTI (J&K) 390 Nov 06 Under construction
4. TEESTA-V (SIKKIM) 510 Feb 07
TOTAL 1480
JOINT VENTURE
5. INDIRA SAGAR (MP) 1000 2004-05 Commissioned
GRAND TOTAL 2480
PlanTotal Hydro Capacity
Addition (MW)
Capacity Addition By NHPC (MW)
% share of NHPC
X PLAN (2002 – 2007)
10,174 2,480 24
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XI PLAN PROJECTSXI PLAN PROJECTS
S.No
Projects Installed Capacity (MW)
Scheduled Year of Comm. Status
UNDER CONSTRUCTION
1 SEWA-II (J&K) 120 May 08
Under Construction
2 TEESTA L/D – III (WB) 132 Mar 08
3 PARBATI-II (HP) 800 Sep 09
4 TEESTA L/D – IV (WB) 160 Sep 09
5 URI-II (J&K) 240 Nov 09
6 CHAMERA-III (HP) 231 Aug 10
7 SUBANSIRI LOWER (Ar. P) 2000 Sep 10
8 PARBATI ST- III (HP) 520 Nov 10
SUB TOTAL 4203
9 OMKARESHWAR(JV) (MP) 520 Feb 08 Under construction
Cont…
PlanTotal Hydro Capacity
Addition (MW)Capacity Addition
By NHPC (MW)% share
of NHPC
XI PLAN (2007- 12) 15,020 6,297 42
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S.No. ProjectsInstalled Capacity
(MW) Scheduled Year of
Comm.Status
NEW PROJECTS
10 NIMMO-BAZGO (J&K) 45 2010-11 CCEA*
cleared11 CHUTAK (J&K) 44 2010-11
12 KOTLI BHEL –IA
(Uttaranchal)195 2011-12 DPR submitted on
03.01.2006
13 KOTLI BHEL –IB
(Uttaranchal)320 2011-12 DPR submitted on
30.01.2006
14 KOTLI BHEL –II
(Uttaranchal)530 2011-12 DPR submitted on
30.03.2006
15 LAKHWAR VYASI
(Uttaranchal)420 2011-12 DPR submitted on
30.03.2006
16 BAV-II
(Maharashtra)20 2010-11 DPR submitted on
31.03.2006
GRAND TOTAL 6297
XI PLAN PROJECTSXI PLAN PROJECTS
* CCEA in meeting held on 02.06.2006 has cleared the project, sanction letter is awaited.
Contd
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FUNDING PLANFUNDING 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 J&K
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.
GOVERNMENT’S FOCUSED ATTENTION AND
EXTRA THRUST TOWARDS HYDRO SECTOR MAY
CONTINUE SO AS TO ACHIEVE THE DESIRED
HYDRO:THERMAL MIX IN THE COMING YEARS.
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THANK YOUTHANK YOU