The liberalised licensing norms introduced by the new Electricity Act, 2003, are already translating into reforms on the ground.
Sample this: The National Thermal Power Corporation is gearing up to supply directly to several special economic zones, breaking the hegemony of state electricity boards.
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A new company -- Indraprastha Electricity Supply Company -- has applied for a licence to distribute power in North-West Delhi, where Tata Power is already a distributor.
Easing of entry norms in the sector is showing results even in the fledgling power trading business.
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Reforms are working in every part of the sector: |
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Distribution:- Indore SEZ is in talks with NTPC for sourcing power directly. Other SEZs are also in talks with NTPC |
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Trading:- New trading company Global Energy Ltd is trading power between Goa and Delhi |
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Generation:- AIIMS is setting up a captive power plant |
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Regulation:- Delhi, Haryana are setting up special courts for speedy hearing of power sector offences |
A new power trading company, Global Energy Ltd, has been trading around 50 mw of power daily between Goa and Delhi since June 19.
Until now, the state-owned Power Trading Corporation was the only utility trading electricity commercially.
Taking advantage of the liberalised captive generation norms, the All-India Institute of Medical Sciences is in the process of setting up a 21.6 mw co-generation captive power plant to ensure uninterrupted power supply.
Several states like Delhi and Haryana have set up special courts to ensure speedy trial of power sector offences, as provided in Section 153 of the Act. All these developments have come in a span of two months since the Act was notified.
Under Section 14 (b) of the Act, an application for supply of electricity to consumers as a distribution licensee can be made to the state electricity regulatory commission.
The Indore special economic zone, which had been sourcing power at a high cost from the Madhya Pradesh State Electricity Board, has applied to the state regulatory commission for a distribution licence within the zone and has tied up with the NTPC to draw power at around Rs 2.20-2.40 a unit, which is around 60 per cent less than the rate charged by the state board.
Other special economic zones were also in talks with the NTPC for sourcing power directly, bypassing the SEBs, company officials said.
Indraprastha Electricity Supply Company, which has applied for a second distribution licence to the Delhi Electricity Regulatory Commission to sell power in the Keshavpuram area of North Delhi, has also taken advantage of provisions in the Act, whereby more than one distribution licensee can operate in an area.
If the licence, which is being examined by the Delhi Electricity Regulatory Commission, is accepted, consumers in North Delhi will have a choice of sourcing power from either the Tata-controlled North Delhi Power Ltd or the new company.
The 21.6 mw, captive gas project being set up by AIIMS is estimated to cost around Rs 72 crore (Rs 720 million) and will lower its Rs 30 crore (Rs 300 million) annual expenditure on electricity bills.
The captive plant, to be put up by state-owned Bharat Heavy Electricals Ltd, takes advantage of Section 9 (1) of the Act, under which licensing requirements for captive projects have been removed.
