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Report of Indian Institute of Public Administration ... - Ministry of Power

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State <strong>Report</strong>s (Vol.-III)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

2.3 PROJECTS IDENTIFIED FOR THE ELEVENTH PLAN<br />

As per the following table the State is likely to get the benefit <strong>of</strong> capacity addition <strong>of</strong><br />

2,890 MW during the Eleventh Plan period and the following projects have been<br />

identified:<br />

State Sector Capacity (MW)<br />

4.26<br />

Commissioning<br />

Schedule<br />

Malwa (T)<br />

1000<br />

U-1 : 2009-10<br />

U-2 : 2010-11<br />

Chanderi CCGT 1300 2010-11<br />

Kanhan HEP 90 ---<br />

Sone HEP 100 ---<br />

Maheshwar (H) 400 2011-12<br />

(Source: CEA)<br />

2.3.1 Capacity Addition through IPPs<br />

In order to attract capital investment in generation sector, around 22 Memoranda <strong>of</strong><br />

Understandings (MOUs) were signed with the independent power producers (IPPs).<br />

However, the capacity addition could not materialise on account <strong>of</strong> perceived poor<br />

paying capacity <strong>of</strong> the SEB.<br />

2.4 RENOVATION AND MODERNISATION OF THE EXISTING PLANTS<br />

More than 60 per cent <strong>of</strong> the generating stations in the State have served for a period<br />

<strong>of</strong> 25 years or more. The generating stations need frequent overhaul and are in urgent<br />

need <strong>of</strong> Renovation and Modernisation (R&M). MPPGCL has not been adequately<br />

spending on repairs and maintenance. The position is as under:<br />

Amount spent<br />

on R&M<br />

1995<br />

-96<br />

1996<br />

97<br />

Table: Investment on R&M<br />

1997<br />

-98<br />

1998<br />

-99<br />

1999<br />

-2000<br />

2000<br />

-01<br />

2001<br />

-02<br />

2002<br />

-03<br />

(Rs crore)<br />

2003<br />

-04<br />

29.60 15.13 11.19 23.04 20.61 13.18 2.93 1.64 0.71<br />

(Source: MPGENCO)<br />

MPERC in its tariff order dated 10 December 2004 allowed Rs 140.31 crore under<br />

R&M <strong>of</strong> generating stations, but the GENCO once again failed to utilise the approved<br />

amount. Vide its tariff order dated 25 January 2006, MPERC approved Rs 131.91<br />

crore under this head. It is desirable that the GENCO should spend adequate amount

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