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Indian Power Sector

Indian Power Sector. Financing the Growth . Mission. Power for all by 2012 National Goal is to provide reliable, affordable and quality power for all by 2012. ELECTRICITY ACT 2003. Objective:

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Indian Power Sector

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  1. Indian Power Sector Financing the Growth

  2. Mission • Power for all by 2012 National Goal is to provide reliable, affordable and quality power for all by 2012

  3. ELECTRICITY ACT 2003 Objective: To promote competition by allowing entry of private sector in generation, transmission, distribution and trading of electricity

  4. Power Development - 16th EPS Projections Peak requirement in MW Energy requirement in BU

  5. Future Projections Tenth Plan(2002-07) • Capacity addition 41,110 MW of which • Central Sector : 22,832 MW • State Sector : 11,157 MW • Private Sector : 7,121 MW • Total investment envisaged during 10th Plan is of the order of Rs. 4 lakh crores. (Source: Ministry of Power / Kohli Committee Report)

  6. Funds Requirements (X Plan) Source: Kohli Committee Report to MOP

  7. Future Projections Eleventh Plan(2007-2012) • Capacity addition 62,213 MW of which • Central Sector : 24,283 MW • State Sector : 12,340 MW • Private Sector : 25,590 MW Source: Kohli Committee Report to MOP

  8. Funds Requirements (XI Plan) Source: Kohli Committee Report to MOP

  9. Funds Requirements 2002-12(Sector – wise) • With privatisation, requirements likely to shift from State to Private Utilities. • Include requirements for 12th Plan starts • Exclude transition period of reform/restructuring of states require- ment (Rs. 100,000 crores) and non-conventional energy projects. • Estimate on completion cost basis. Source: Kohli Committee Report to MOP

  10. Funds Requirements 2002-12(Function - wise) Source: Kohli Committee Report to MOP

  11. Funding of Power Sector 2002-12 Source: Kohli Committee Report to MOP

  12. Power Finance Corporation Financing the Power Sector

  13. Financing of R&M • Government Support: • AG&SP provides upto 3% interest subsidy (4% for special category states) • Direct PFC Lending: • Interest Rate: 9% p.a. payable quarterly • Moratorium: Construction period + 6 months • Repayment: upto 12 years

  14. ADB Line of Credit • Interest Rate for Rupee Loan • T&D: 8.25% p.a. payable quarterly • R&M: 8.75% p.a. payable quarterly • Possibility of Foreign Currency borrowing on back-to-back basis

  15. KFW Line of Credit • Available for Hydro RM&U only • Interest Rate for Rupee Loan: 8.75% p.a. • Possibility of Foreign Currency borrowing on back-to-back basis • Provision of specialised training of borrowers’ personnel

  16. Financing of T&D • Government Support: • APDRP provides for: • 50% Government Funding (25% as Grant & 25% as Govt. Loan) • 50% counterpart funding by FIs • PFC Lending: • Interest Rate: 8.50% p.a. (reduction of 0.5% after commissioning of transmission schemes costing more than Rs. 50 crores) • Moratorium: Construction + 6 months • Repayment: Upto 12 years • Special rebate of 0.25% if included under ADB

  17. Financing of Hydro State Private SectorSector Intt. rate during construction 9.25% 9.75% / 10.50% Intt. rate after commissioning 8.75% 9.25% / 10.00% Moratorium construction period + 6 months Repayment 15 years 10 years

  18. Financing of Thermal State Private SectorSector Intt. rate during construction 9.25% 9.75% / 10.50% Intt. rate after commissioning 8.75% 9.25% / 10.00% Moratorium construction period + 6 months Repayment 12 years 10 years

  19. Grants / Soft Loans / Computerisation(State Sector) Soft Loans: 5% p.a. Computerisation 6% p.a. Repayment 5 years Grant for R&M / R&U / RLA / DMS Studies

  20. THANK YOU

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