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Energy

11. ENERGY

Power

  • Power development in India commenced at the end of the nineteenth century with the commissioning of electricity supply in Darjeeling during 1897, followed by the commissioning of a hydropower station at Sivasamudram in Karnataka during 1902.
  • In the pre-Independence era, the power supply was mainly in the private sector, that too restricted to the urban areas.
  • With the formation of State Electricity Boards during Five-Year Plans, a significant step was taken in bringing about a systematic growth of power supply industry all over the country.
  • The Ministry of Power is primarily responsible for the development of electrical energy in the country.
  • The Ministry is concerned with perspective planning, policy formulation, processing of projects for investment decisions, monitoring of the implementation of power projects, training and manpower development and the administration and enactment of legislation with regard to thermal and hydro power generation, transmission and distribution.
  • In all technical matters, the Ministry of Power is assisted by the Central Electricity Authority (CEA).
  • The construction and operation of generation and transmission projects in the Central Sector are entrusted to Central Sector Corporations, viz., the National Thermal Power Corporation (NTPC), the National Hydroelectric Power Corporation (NHPC), the North-Eastern Electric Power Corporation (NEEPCO), and the Power Grid Corporation of India Limited (PGCIL).
  • The Power Grid is responsible for all the existing and future transmission projects in the central sector and also for the formation of the National Power Grid.
  • Two joint-venture power corporations, namely, Satluj Jal Vidyut Nigam (SJVN) (formerly known as NJPC) and Tehri Hydro Development Corporation (THDC) are responsible for the execution of the Nathpa Jhakri Power Project in Himachal Pradesh and projects of Tehri Hydro Power Complex in Uttarakhand respectively.
  • Three statutory bodies, i.e., the Damodar Valley Corporation (DVC), the Bhakra-Beas Management Board (BBMB) and Bureau of Energy Efficiency (BEE), are also under the administrative control of the Ministry of Power.
  • Programmes of rural electrification are provided financial assistance by the Rural Electrification Corporation (REC).
  • The Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) provide term-finance to projects in the power sector.
  • The autonomous bodies (societies), namely Central Power Research Institute (CPRI) and the National Power Training Institute (NTPI) are also under the administrative control of the Ministry of Power.

Power Generation

  • The total electricity generation including generation from renewable sources during 2018-19 was 1,376.096 BU as against 1,308.146 BU during the last year, registering a growth of 5.2 percent.

Development of National Grid

  • All five regional grids, namely northern region, western region, eastern region, northeastern region and southern region have been inter-connected in synchronous mode.
  • The updated version of Energy Conservation Building code (ECBC) was launched 2017.
  • The scope of ECBC 2017 includes norms and standards for building design, including the envelope, lighting, heating, air-conditioning and electrical systems.
  • It sets minimum energy standard for new commercial building having connected load of 100 KW and above or contract demand of 120 KW and above.

Capacity Addition Programme and Achievement during 2018-19

  • Capacity Addition target from conventional sources 8,106.15 MW including 500 MW of nuclear has been fixed for the year 2018-19.
  • Against this target, a capacity of 5,921.755 MW has been achieved.

SCHEMES

Deendayal Upadhyaya Gram Jyoti Yojana

Objectives:

  • To separate agriculture and non-agriculture feeders for judicious rostering of supply to agricultural and non-agricultural consumers in rural areas.
  • Strengthening and augmentation of sub-transmission and distribution infrastructure in rural areas.
  • Metering in rural areas (feders, distribution transformers and consumers).
  • The erstwhile rural electrification scheme was subsumed in DDUGJY as a separate rural electrification component and the approved outlay of the erstwhile scheme has been carried forward to the DDUGJY.

Saubhagya—Pradhan Mantri Sahaj Bijli Har Ghar Yojana

  • To achieve universal household electrification in the country by March 2019, the Government launched the Saubhagya scheme with a total cost of Rs 16,320 crores including gross budgetary support of Rs 12,320 crore during the entire implementation period.

Objectives:

  • Providing electricity connections to all un-electrified households in rural areas.
  • APL households will get electricity connections on payment of Rs 500 (which is payable in 10 installments in the electricity bill).
  • Providing Solar Photo Voltaic (SPV) based standalone system for un-electrified households located in remote and inaccessible villages/ habitations, where grid extension is not feasible or cost-effective.
  • Providing electricity connections to all remaining economically poor Un-electrified households in urban areas.

Integrated Power Development Scheme

  • In order to provide impetus to the strengthening of power distribution sector in urban area, the Ministry of Power launched IPDS in 2014.

Objectives:

  • Strengthening of sub-transmission and distribution network in urban areas.
  • Metering of distribution transformers/feeders/consumers in urban areas.
  • IT enablement of distribution sector and strengthening of distribution network.

UDAY—Ujwal DISCOM Assurance Yojana

  • It was launched in 2015 for a sustainable solution to the operational and financial inefficiencies of DISCOMs across the country.
  • UDAY is voluntary scheme for participation and 26 states and 1 union territory have joined the scheme.
  • The scheme is being monitored by an inter-ministerial committee and a state level committee.
  • A portal (www.uday.gov.in) has been developed for ease of data entry by states/DISCOMs.
  • This portal provides basic analytics and progress of performance of various states/ DISCOMs in the public domain as a measure of transparency.

Pradhan Mantri Ujjwala Yojana

Objectives:

  • To provide deposit free LPG connections to 8 crore women belonging to the Below Poverty Line (BPL) households thereby protecting their health by reducing the serious health hazards associated with use of conventional cooking fuels such as firewood, coal, cowdung, etc., which causes severe indoor household air pollution.
  • So far, more than 5.55 crore BPL families have been benefited by this Scheme.
  • The eligible families are identified through Socio-Economic Caste Census list and in case, the name is not found in SECC list, from seven categories i.e.,
  • beneficiaries of Pradhan Mantri Awas Yojana (PMAY-Gramin), beneficiaries of Antyodaya Anna Yojana, SC/ST households, most backward classes, forest dwellers, tea/ex-tea garden tribes and residents of islands/river islands subject to fulfilling other terms and conditions of the Scheme.

PAHAL

Objectives:

  • Subsidy delivery to LPG consumers
  • Rationalizing subsidies based on the approach to cut subsidy leakages, but not subsidies per se.
  • The applicable subsidy is directly transferred into the bank account of the beneficiaries.
  • So far, more than 22.40 crore LPG consumers have joined the Scheme.
  • PAHAL has entered into Guinness Book of World Record being largest Direct Benefit Transfer scheme, so far, more than Rs 83,653 crore has been transferred into the bank account of consumers.

Petroleum and Natural Gas

  • The Ministry of Petroleum and Natural Gas is concerned with the exploration and production of oil and natural gas (including import of liquefied natural gas), refining, distribution and marketing, import, export and conservation of petroleum products.
  • Due to rapid economic expansion, India has become the world’s fastest-growing energy market.
  • India surpassed Russia to become the 3 largest energy consumer in the world after China and USA during 2015.
  • Oil and gas accounted for around 35 percent share in India’s energy consumption.
  • In fact, India surpassed Japan to become the 3rd largest oil consumer in the world after US and China during 2015.

Production of Crude Oil and Natural Gas:

5 Years Production profiles

                                                    

Refining Capacity:

  • India, which is second largest refiner in Asia after China, is emerging as a refinery hub with refining capacity exceeding demand. The country’s refinery capacity was also increased.

Import of Crude Oil:

Financial Year

Crude oil import (Million Tonne)

Crude oil import bill (Rs crore)

2018-19

228.6

111.9

2017-18

220.43

87.8

2016-17

213.93

70.2

2015-16

202.85

63.9

2014-15

189.43

112.7

2013-14

189.23

144.3

Imports and Exports of Petroleum Products:

  • During April to November 2018, imports of petroleum products were at 21.25 MMT valued at Rs 75,160 crore which showed a decline of 11.24 percent in quantity terms and 37.33 per cent increase in value terms against 23.94 MMT imports of petroleum products valued at Rs 54,731 crore during 2016-17.
  • During April to November 2018, exports of petroleum products were 41.69 MMT valued at Rs 1,92,154 crore which shows a decline of 6.04 percent and an increase of 36.39 percent.

Make in India:

  • To roll out Make in India campaign in oil and gas sector, a policy to provide purchase preference in all public sector undertakings under the Ministry was approved.
  • The policy aims to encourage participation of domestic and overseas players in the domestic oil and gas sector, create employment opportunities and reduce dependence on imports.

Sahaj:

  • Sahaj was a digital initiative launched by oil marketing companies for release of LPG connection with online payment and issuance of ‘e-SV’ under the Digital India initiative and the facility is now available on pan India basis.

Energy Security:

  • With a view to increase domestic production of oil and gas, the Discovered Small Field (DSF) Policy was notified for monetization of discovered small fields of ONGC and OIL, which had not been put into production.
  • Under the policy 30 contract areas were awarded for development through International Competitive Bidding (ICB).

Pricing of Petroleum Products:

  • The Administered Pricing Mechanism (APM) or cost-plus pricing for petroleum products which was introduced in 1976 was abolished from 2002, consequent to the de-regulation of the oil sector in India.
  • The Government notified that the pricing of all petroleum products except PDS kerosene and domestic LPG would be market-determined.
  • In 2006, based on the recommendations of the Rangarajan Committee, the government changed the pricing mechanism for petrol and diesel from import parity to trade parity (trade parity being the weighted average of import parity and export parity prices in the ratio of 80:20) while the pricing of PDS kerosene and domestic LPG continues on import parity basis.

 PUBLIC SECTOR UNDERTAKING(PSUs)

Hindustan Petroleum Corporation Limited

  • It is a mega Public Sector Undertaking (PSU) with ‘Navratna’ status.
  • HPCL has two refineries; one in Mumbai (west coast) having a capacity of 6.5 MMTPA and the other in Visakhapatnam (east coast) with a capacity of 8.3 MMTPA.
  • HPCL holds an equity stake of 16.95 percent in Mangalore Refinery and Petrochemicals Limited, a state-of-art refinery at Mangalore with a capacity of 9.69 MMTPA.
  • HPCL has state-of-art information technology infrastructure to support its core business.
  • The data centre is located at Hitech city in Hyderabad.

Gas Authority of India Limited

  • Having started as a gas transmission company it grew organically over the years by building a large network of natural gas trunk pipelines covering a length of over 8,700 km.
  • Further, to strengthen position as India’s premier integrated gas company, GAIL has set up LNG import infrastructure and will be focusing on areas like city gas distribution, petrochemicals business, diversifying into high margin downstream areas in gas value chain and creating a portfolio of renewable business.

Indian Oil Corporation Limited

  • It is India’s flagship national oil company with business interests encompassing the entire hydrocarbon value chain- from refining, pipeline transportation and marketing of petroleum products to exploration and production of crude oil and gas, marketing of natural gas, petrochemicals, renewable energy and now into nuclear energy.
  • The Indian Oil Group of companies own and operate 10 of India’s 22 refineries with a combined refining capacity of 213.2 million metric tonnes per annum.
  • Indian Oil’s cross-country network of crude oil and product pipeline spans 10,909 km with a capacity of 75.55 MMTPA of crude oil and petroleum products and 96 MMSCMD of gas.
  • This network is the largest in the country.
  • It operates more than 20,000 outlets, the largest and most extensive network of retail outlets.
  • The Corporation’s Indane cooking gas reaches the doorsteps of about 65 million households through about 5,934 distributors.
  • Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates, Indian Oil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.

Bharat Petroleum Corporation Limited

  • BPCL is an integrated oil company, in the downstream sector, engaged in refining of crude oil and marketing of petroleum products.
  • It has also diversified into the production and marketing of petrochemical feedstock.
  • BPCL has refineries at Mumbai and Kochi with a combined refining capacity of 21.5 MMTPA. Both the refineries are certified under the Integrated Management System (IMS).
  • BPCL has a robust distribution network comprising major storage installations and depots; LPG bottling plants, 1938 km cross-country pipeline and two lubricant blending plants.

Oil and Natural Gas Corporation Limited

  • ONGC, engaged in exploration and production of crude oil, natural gas and value added products was incorporated in 1993 under Companies Act, 1956, pursuant to government’s decision to transform the statutory commission into a Public Limited Company, through an Act of Parliament [Oil and Natural Gas Commission (Transfer of Undertaking and Repeal, Act, 1993)].

ONGC Videsh Limited

  • OVL, is engaged in exploration and production of oil and gas outside India.
  • OVL was incorporated as Hydrocarbons India Limited in 1965 to perform international exploration and production business.
  • The company was rechristened as ONGC Videsh Limited from 1989.
  • It has participated either directly or through its wholly owned subsidiaries/joint venture companies in 30 projects in 15 countries of which nine projects are operated by OVL, 7 are jointly operated and 14 managed through participating interest.

Bharat Petro Resources Ltd

  • BPRL, formed in 2006, is a wholly owned subsidiary and Exploration and Production (E&P) arm of Bharat Petroleum Corporation Limited (BPCL).
  • While BPCL is engaged in the midstream and downstream segments in India, BPRL carries out upstream activities both in India and overseas.

Oil India Limited

  • It is engaged in the business of exploration, production and transportation of crude oil and natural gas.
  • In 1959, Oil India Private Limited was incorporated to expand and develop the newly discovered oil fields of Naharkatiya and Moran in Assam.
  • In 1961, it became a joint venture company between the Indian Government and Burmah Oil Company Limited, UK.
  • In 1981, OIL India Pvt. Ltd. became a wholly owned Government of India enterprise.
  • In-country operational areas are spread over Assam, Arunachal Pradesh, Mizoram, Bihar, Andhra Pradesh, Puducherry, Andaman and Rajasthan.
  • OIL has presence in nine countries, viz., Venezuela, Libya, Gabon, Iran, Nigeria, Yemen, Sudan, Timor Leste and Egypt, pursuing various activities.
  • In addition, OIL owns and operates a trunk crude oil pipeline in the north east region of the country for transportation of crude oil to feed Numaligarh, Guwahati and Bongaigaon refineries.

New and Renewable Energy

Ministry of New and Renewable Energy (MNRE) is the nodal Ministry at the federal level for all matters relating to new and renewable energy.

Indian Scenario

  • Over the years, renewable energy sector in the country has emerged as a significant player in the grid connected power generation capacity.
  • Renewable energy sector landscape in India has, during the last few years, witnessed tremendous changes in the policy framework with accelerated and ambitious plans to increase the contribution of solar energy.

Drivers for Development

  • At present around 69.5 percent of India’s power generation capacity is based on coal.
  • In addition, there is an increasing dependence on imported oil, which is leading to imports of around 33 percent of India’s total energy needs.
  • Despite the increase in installed capacity by more than 113 times, India is still not in a position to meet its peak electricity demand as well as energy requirement.
  • The peak power deficit during the financial year 2001-02 was 12.2 percent, approximately 9252 MW, however, at the end of 2014-15, the peak power deficit decreased to the order of 2.4 percent.
  • As a fallout of this situation planned and un-planned measures were undertaken by the government and utilities to bridge this demand-supply gap.
  • Almost 85 percent of rural households depend on solid fuel for their cooking needs and only 55 percent of them have access to electricity.
  • Lack of rural lighting is leading to large-scale use of kerosene.
  • India has taken a voluntary commitment of reducing the emission intensity of its GDP by 33-35 percent from 2005 levels by 2030.
  • In the recently concluded 21 Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) held at Paris, France, India committed to achieving about 40 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030 with the help of transfer of technology and low-cost international finance including from Green Climate Fund (GCF).

Renewable Energy Potential

  • India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources viz. Wind - 102 GW (at 80 metre mast height); small hydro - 20 GW; bioenergy - 25 GW; and 750 GW solar power, assuming 3% wasteland is made available.
  • The Ministry had taken up a new initiative in 2014 for implementation of wind resource assessment in uncovered / new areas with an aim to assess the realistic potential at 100 m level in 500 new stations across the country under the National Clean Energy Fund (NCEF).
  • National Institute of Wind Energy has used advanced modelling techniques and revised the estimate the wind power potential at 100 metre at 302 GW.
  • Over 1.2 million households are using solar energy to meet their lighting energy needs and almost similar numbers of the households meet their cooking energy needs from biogas plants.
  • Solar Photovoltaic (PV) power systems are being used for a variety of applications such as rural electrification, railway signaling, microwave repeaters, mobile towers, TV transmission, and reception, and for providing power to border outposts.
  • The National Institute of Wind Energy (NIWE), formerly known as Centre for Wind Energy Technology, has developed the Wind Atlas of India.
  • NIWE also collects data from Solar Radiation Resource Assessment stations to assess and quantify solar radiation availability and develop Solar Atlas of the country.
  • National Institute of Solar Energy has assessed the State-wise solar potential by taking 3 percent of the wasteland area to be covered by Solar PV modules.
  • The Indian Institute of Science, Bengaluru has developed Biomass Atlas of India, and the Alternate Hydro Energy Centre, Indian Institute of Technology, Roorkee has assessed small hydro potential in the country.

Renewable Energy for Rural Applications:

  • More than 35,000 biogas plants of the approved models were installed across the country with financial support of the Ministry, taking the cumulative installation to over 49.40 lakh biogas plants in all states and union territories.
  • Under the National Biomass Cookstoves Initiative, several pilot projects have been taken up for deployment of improved biomass cookstoves for demonstration among domestic and large sized community cooking in Anganwadis, mid-day meal schemes in schools, tribal hostels, etc.

New National Biogas and Organic Manure Programme:

  • It is being implemented with the objective to provide clean cooking fuel and to meet lighting, thermal and small power needs of farmers/ dairy farmers/users including individual households and to improve organic manure system based on bioslurry from biogas plants in rural and semi-urban areas by setting up of biogas plants.
  • It saves time and energy of rural people, which can be used for other livelihood activities. It also reduces pressure on forests and improves sanitation in rural and semi-urban areas.

National Solar Mission

  • Launched in January 2010, the National Solar Mission (NSM) was the first mission to be operationalized under the National Action Plan on Climate Change (NAPCC).
  • Using a three-phase approach, the mission’s objective is to establish India as a global leader in solar energy, by creating the policy conditions for solar technology diffusion across the country as quickly as possible.
  • The revised tariff policy requires all States to reach 10.5 percent solar RPO by the year 2022.
  • Solar water heaters and rooftop Solar systems have been promoted in government, commercial and residential areas through regulatory intervention such as mandates under building by-laws and its incorporation in the National Building Code.
  • Off-grid and rooftop solar applications have been promoted through the provision of subsidies from the central government.
  • Research and development is also being encouraged through approvals of R&D projects and the establishment of centers of excellence by the Ministry.

 Solar/Green Buildings Programme:

The Ministry has been implementing a Scheme on Energy Efficient Solar Green Buildings since 2009, which aims to promote the widespread construction of energy-efficient solar green buildings in the country through a combination of financial and promotional incentives.

Solar Cities Programme:

  • The “Development of Solar Cities” programme aims at minimum 10 per cent reduction in projected demand of conventional energy at the end of five years, which can be achieved through a combination of energy efficiency measures while enhancing supply from renewable energy sources.

COAL

  • The Ministry of Coal (MoC) has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues.
  • These key functions are exercised through its public sector undertakings, namely Coal India Limited (CIL) and Neyveli Lignite Corporation Limited (NLC) and Singareni Collieries Company Limited (SCCL), a joint sector undertaking of Government of Telangana and Government of India with equity capital in the ratio of 51:49.

COAL

Coal Reserves

  • 319.020 billion tonnes of coal reserves have been estimated by the Geological Survey of India.
  • The reserves have been found mainly in Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra.

Lignite Reserves

  • The lignite reserves in the country have been estimated at around 45.66 billion tonnes by the Geological Survey of India.
  • The major deposits are located in Tamil Nadu, followed by Rajasthan, Gujarat, Kerala, West Bengal and union territories of Jammu and Kashmir and Puducherry.

Coal Production

  • The overall production of coal for 2018-19 was projected at 730 MT.
  • During 2018-19 the actual production was 730.25 MT compared to 675.40 MT during the corresponding period of 2018-19 showing a growth of 8.1 percent.

Coal India Limited

  • Coal India Limited (CIL) is a ‘Maha Ratna’ company under the Ministry of Coal, with headquarters at Kolkata, West Bengal.
  • CIL is the single largest coal producing company in the world.
  • CIL operates through 82 mining areas spread over eight provincial states of India.
  • It has 429 mines of which 237 are underground, 166 opencast and 26 mixed mines.
  • CIL is the apex body in the coal industry under the administrative control of the Ministry of Coal.
  • Coal India is a holding company with seven wholly-owned coal producing subsidiary companies and one mine planning and consultancy company.

Neyveli Lignite Corporation Limited

  • NLC was registered as a company in November 1956.
  • The mining operations in Mine-I were formally inaugurated in 1957.
  • It has been conferred with ‘Navratna’ status since 2011.
  • NLC operates three open-cast lignite mines of the total capacity of 28.5 million tonnes per annum at Neyveli and one open cast lignite mine of capacity 2.1 million tonnes per annum at Barsingsar, Rajasthan, three thermal power stations with a total installed capacity of 2,490 MW at Neyveli and one thermal power station at Barsingsar, Rajasthan with an installed capacity of 250 MW.
  • All the mines of NLC are ISO certified for quality management system, environmental management system and occupational health and safety management system.

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