SUBMITTED BY:-

KIRTI KUNAL

MBA PM

500028411

ABOUT JHARKAHND

Structure of Jharkhand power system

GENERATION

• Jharkhand State Electricity Board: The Jharkhand State Electricity Board operates 2 generation plants- PatratuThermal Power Station (PTPS) and Sikidiri Hydel Power Plant (SHPS) within the state. The current status of the plants is provided below.

• Patratu Thermal Power Station: The plant is located in Patratu, Ramgarh having a total installed capacity of 840 MW. However the capacity is de-rated to 770 MW owing to operational disabilities. The details are provided as we progress.

• The plant includes 10 units and the first unit was commissioned in 1966. The table belowprovides the commissioning dates and the de-rated capacities of each of the 10 units along withcurrent status.

• As depicted it can be noted that only unit 4&6 are currently operational in FY 2012-13. Thus out of a total installed capacity of 840 MW only 150 MW is operational and de-rated capacity of which is 130 MW.

• The latest plant (Unit No 10) was commissioned in 1986 and is aged at 26 years. The average life of a thermal plant is considered to be 25-30 years. Age of other units of PTPS is in the range of 28 to 46 years.

• Unit no.3 and Unit no 5 having de-rated capacity of 50 MW and 90 MW resp. are currently being phased out as per CEA recommendation.

Sikidiri Hydro Plant:

The plant is located in Muri region of Jharkhand, has installed capacity of 130 MWcomprised of two 65 MW units. Before the formation of Jharkhand the plant wasmeant to cater to the peak demand in the state of Bihar except rainy season whenthe plant was run for 24 hours. The plant is designed for continuous operation atreservoir level of 1925 feet. However, during discussions with JSEB team, it wasfound out that the water level at the reservoir is above 1925 feet only 3-4 months ina year. The reason being the fact that the same reservoir is used to supply water tothe town of Ranchi. Also, the quantity of water in the reservoir is reported to behigher due heavy silting. As such the generation of Sikidiri plant has beenunpredictable.

Overhaul of the plant, Power Canal, fore bay dam etc. is planned for Sikidiri Plant inFY 2012-13 for a proposed cost of Rs. 10 crore. Further, JSEB plans to undertakeR&M and LE of both units of the plant for a proposed cost of Rs. 100 crore.

Tenughat Vidyut Nigam Limited:

TVNL was constituted in the year 1987 as a wholly owned unit of Government ofBihar undertaking. It operates 2 thermal units of 210 MW generation capacities inthe state of Jharkhand. Unit I started its commercial operation in September 1996followed by Unit II in September 1997. The Corporation supplies 100% of thepower generated to JSEB for distribution. The existing PPA with JSEB has expired onAugust 1 2010 and till date a renewed PPA has not been signed. However, as JSEBcontinues to procure power from TVNL and based on a clause of the existing PPAcurrently all the provisions of the existing PPA are applicable till new PPA is enteredinto. The actual net generation of TVNL stands at 2277.37 MUs in 2011-12 reducedfrom 2453.69 MUs in 2010-11. Plant load factor for 2010-11 stands at 66.69% and for2011-12 at 61.73%. Auxiliary consumption is in the range of 9% to 10% and stationheat rate averages to around 3000 kCal/kWh. Currently there is a litigationregarding ownership of TVNL between Government of Jharkhand and Government ofBihar pending with the Supreme Court. Actual supply to JSEB stands at an average of1946 MUs during 2007-08 to 2011-12.

Bokaro Power Supply Corporation:

BPSCL is a 50:50 JV between SAIL and DVC formed for the purpose of supplyingpower in contingent situations to the Bokaro Steel Plant. The plant is captive innature, located in Bokaro Steel Plant and having a total generation capacity of 302MW thermal power plant.

Damodar Valley Corporation:

Damodar Valley Corporation plays a major role in meeting the power supplydemand in the Damodar valley region. It operates a total generation capacity of4857.2 MW (Thermal & Hydro combined) of which 1604 MW (Thermal & Hydrocombined) is generated within the geographical boundary of Jharkhand. The restis produced in West Bengal. The below table lists the powergeneration within the state of Jharkhand.

Maithon Power Limited (JV of Tata Power & DVC):

MPL is a 76:24 joint venture between DVC and Tata Power located in Dhanbad having a total installed capacity of 1050 MW (2 X 525 MW). Unit I of 525 MW capacity was commissioned in September 2011 and Unit II of the same capacity was recently commissioned in July 2012. Of the first unit of capacity 525 MW, 330 MW is being sold to NDPL (Delhi) and BSES (Rajdhani) through Case I bidding; 45 MW is sold in the open market and balance 150 MW is sold to DVC as per tariff determined by Commission.

Tata Power Limited:

The main generating station of Tata Power in Jharkhand is theJojobera Plant having 5 units at a total installed capacity of 547.5 MW. Unit I has acapacity of 67.5 MW followed by 120 MW each for Unit II, Unit III and Unit IV. In 2011the commercial operation of Unit V began having an installed capacity of 120 MW. Allof the generation capacity is used to power steel works of Jamshedpur Tata Steelplant, supplying power to consumers of steel works and city of Jamshedpur by TSL.

Upcoming Private Power Plants:

Corporate Power Ltd, a special purpose vehicle of Abhijeet Group is developing a thermal power plant of 4 units constituting a total capacity of 1080 MW in the state of Jharkhand. The project is divided into 2 phases, each commissioning 2 units of 270 MW. Anticipated commissioning for Unit 1 is scheduled for September 2012 and that of Unit 2 is December 2012. Phase 2 with a combined capacity of 540 MW (2 X 270MW) is expected in June 2013 and Sep 2013 resp.

Adhunik Power company limited is another IPP developing 2 Units of 270

MW each in Jharkhand and is expected in November 2012 and June 2013 resp. Both these unit upon being operational would play a major role in the power sector of the state.

TRANSMISSION

JSEB has also been engaged in electricity transmission related activities in the state of Jharkhand. Presently, JSEB is also functioning as Transmission Utility (STU). JSEBhas the responsibility of construction and maintenance of its transmission system. The below figure shows the power generation plants and transmission network inJharkhand. It depicts the existing and under construction capacities also. Power Map explains the linkages between different states with Jharkhand.

DISTRIBUTION

Jharkhand State Electricity Board:

JSEB being the state utility in generation, transmission and distribution has the highest extent of reach in the state of Jharkhand. It typically supplies power in the DVC command area (7 districts falling under the purview of the DVC Act) at 11kV or less and in the remaining 17 states at both HT and LT levels. Energy sales of JSEB has increased from 2770 MUs in 2003-04to 8400 MUs (as approved in T.O 2012-13) in 2012-13. That accounts for a CAGR of 13.17% p.a.

JUSCO: Jamshedpur Utilities and Services Company Limited is a subsidiary of Tata Steel managing the power division. The company was incorporated in August 2003to separate the town related services and power distribution in Jamshedpur. Itsupplies power to Jamshedpur as a franchisee of Tata Steel Limited as well as to therevenue district of Saraikela – Kharsawan. JUSCO serves a small customer base of365 customers (as of March 2011) but substantial additions are estimated bringingthe count to 545 customers at the end of FY 2011-12. Total customers as approvedby Commission for 2012-13 stands at 859. JUSCO serves a total consumption ofaround 302 MUs (as approved by Commission in 2012-13) and this has increasedsubstantially from 212 MUs in 2010-11. Emphasis has been laid by the licensee toincrease LT consumers by targeting domestic, non-domestic and rural customersrecently.

Tata Steel Limited: Tata Steel Limited is a licensee for Jamshedpur town and itmanages the distribution function through JUSCO as a distribution franchisee in thearea. The energy sales of TSL was approximately 1900 MUs in 2010-11 and wasestimated to be around 2200 MUs in 2011-12. The approved energy sales for2012-13 stand at 3017 MUs. The company enjoys low T&D loss ranging between 7-8%. The total number of consumers stands at around 46036 with a total connectedload of 722000 units(kWh and kVA combined). TSL purchases power from TataPower, DVC and captive plant of TSW (Tata Steel Works) for meeting is energyrequirement. As per T.O 2012-13 Tata Steel recovers at least 80% of the average costof supply from all consumer categories. As such the amount of cross subsidy is lower.

Damodar Valley Corporation: DVC supplies bulk power at 33 KV, 132 KV and 220KV through a network covering more than 5500 circuit kilometers. The 7 districts that it supplies electricity includes Dhanbad, Bokaro, Giridih, Hazaribagh, Kodarma,Ramgarh & Chatara.

Steel Authority of India Limited, Bokaro: SAIL, Bokaro acts as a distribution licenseein the Bokaro Steel City. The energy requirement is met through power purchasefrom BPSCL (Bokaro Power Supply Corporation Ltd) and DVC. It serves around 50000consumers with approximate energy sales of 184 MUs. The company suffers fromhigh distribution losses of around 30%.

Share of distribution

Performance of state owned utilities

GENERATIONPatratu thermal station (PTPS) of JSEB currently runs at suboptimal levels as only 2out of 10 units are operational. Also Sikidiri hydel power plant owned by JSEB iscurrently facing generation difficulties owing to low water levels of Sikidiri reservoirand heavy siltation. The proposed generation capacity of JSEB as per T.O 2012-13,the gross generation of PTPS (Patratu Thermal Power Station) is expected to be 722MUs and that for Sikidiri Hydel Plant (SHPS) is expected to be 159 MUs. Plant loadfactor as estimated by JSEB for PTPS is estimated as 34.34%. The auxiliaryconsumption is estimated to be 14.25% for PTPS and 3.84% for SHPS. Station heatrate of PTPS is proposed to be 4231 kCal/kWh for 2012-13.

Gross generation from TVNL as proposed in T.O 2012-13 is estimated at 2759 MUsbased on a PLF of 75%. TVNL has achieved PLF of 59% during 2007-08 to 2011-12 onan average. Approved power purchase of JSEB is 2344.76 MUs from TVNL and isdepicted below. Station heat rate as proposed for 2012-13 stands at 2980 kCal/kWhagainst 3031 kCal/kWh actually achieved in 2011-12. Auxiliary consumption isproposed to be 10%. Actual auxiliary consumption in 2011-12 was 9.71%.

T & D LOSSEST&D losses as proposed by JSEB for 2012-13 stand at 29.25%. However the losseshave shown a declining trend over the years from 41.99% in 2007-08 to 30.89% in2011-12. Still the figure remains way below the national level T&D losses which haveranged between 22 – 27% during 2007-08 to 2011-12 according to PlanningCommission report on working of state power utilities.

As can be seen from the above chart, even though there was not much difference in the Commission’s target and the actual losses during FY 2003-04, JSEB could not bring down the T&D losses substantially over the years.

T&D losses for other utilities within the state have been considerably low. TSL has achieved a T&D loss of 7.79% in 2010-11. JUSCO similarly proposed a T&D loss of 2.61% for 2012-13 T.O.

The supply from NTPC, DVC and Tata Power are substantially higher. Since a big portion of the total power purchase of JSEB is sourced from DVC and NTPC, the impact on the overall power purchase cost is huge.

This higher cost translates to higher cost of supply for the utility. If we compare the power purchase cost of TSLand JUSCO as approved in T.O 2012-13 it can be noted that the difference is substantial.

Figure 11 & 12 depicts the power purchase cost of Tata Power andJUSCO as approved in T.O 2012-13.

SUGGESTIONS