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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 />

99, has not been sustained to the desired level. This has resulted in lack <strong>of</strong><br />

understanding and poor response from the public to the crucial issues relating to the<br />

reforms process.<br />

GENERATION<br />

Key Concerns<br />

The 16 th Electric <strong>Power</strong> Survey (EPS) projections by CEA forecasted a demand <strong>of</strong><br />

around 7,000 MW for Haryana in 2011-12. Considering the fact that Haryana has<br />

currently a capacity <strong>of</strong> around 4,033 MW, the State has taken some concrete steps for<br />

capacity addition <strong>of</strong> 3,000 MW during the next five years. The State has formulated an<br />

ambitious plan for capacity addition in the State sector during the Eleventh Plan with<br />

an outlay <strong>of</strong> around Rs 11,596 crore. Deenbandhu Chhotu Ram Thermal <strong>Power</strong><br />

Project-II, (DCRTPP) Yamuna Nagar with a capacity <strong>of</strong> 600 MW (2x300 MW), is<br />

expected to be commissioned by February 2008, HPGCL has taken up 1,000 MW<br />

thermal project at Hissar and plans have been finalised for another 1,000 MW plant in<br />

Jhajjar district through the competitive bidding route. The State is taking initiatives for<br />

timely completion <strong>of</strong> the projects planned to be executed during the Eleventh Plan<br />

period. However, the investments would depend on the availability <strong>of</strong> the State’s<br />

budgetary resources and the degree <strong>of</strong> success in obtaining financial support from the<br />

Financial Institutions (FIs).<br />

The State has also received Expression <strong>of</strong> Interest from many Independent <strong>Power</strong><br />

Producers (IPPs) for setting up gas-based projects within the State. However, owing to<br />

the uncertainty in availability <strong>of</strong> gas, it is unlikely that any <strong>of</strong> these would fructify in<br />

the foreseeable future.<br />

The power sector reforms in the State have not attracted private investments. But now<br />

the State Government is creating an enabling environment and making renewed<br />

efforts for attracting private investments in the generation segment and also to<br />

supplement its own plants for increasing the State’s share in generation capacity by<br />

2011-12.<br />

The variable cost <strong>of</strong> generation is increasing rapidly for HPGCL plants. From 67 per<br />

cent <strong>of</strong> total cost <strong>of</strong> generation in 1999-2000, the same stands high at 72 per cent <strong>of</strong><br />

the cost <strong>of</strong> generation in 2004-05. HPGCL has improved operating performance levels<br />

<strong>of</strong> the existing generating stations during the post-reform period. Apart from the<br />

addition in generating capacity, there is a substantial improvement in the Plant Load<br />

2.2

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