A $400-bn plan with fair returns will ensure 24X7 power: Piyush Goyal

A massive overhaul of the power sector is underway with the government planning to bring in a series of amendments to the Electricity Act of 2003 across all segments of the power value chain within the current session of Parliament.

“I am looking at a billion tonne coal production, 100 Gw of solar power capacity and investments of about $50 billion in the transmission and distribution segment in the next five years,” said Piyush Goyal, minister of state (independent charge) for power, coal and new and renewable energy, while addressing Confederation of Indian Industry national council meeting, organised in the capital on Saturday.

Power Minister eyes billion-      The Union Cabinet had in November approved the launch of Deendayal
tonne coal output, 100 GW      Upadhyaya Gram Jyoti Yojana (DDUGJY) for ensuring 24x7 power          of solar power capacity and      Supply
$50 bn investments in T&D
segment in next five years          The Rs 43,033-crore scheme would separate agriculture and non-
                                           agricultural feeders, facilitate judicious rostering of supply to agricultural 

and non-agricultural consumers in rural areas, and strengthen sub-transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.   

In a bid to boost renewable energy, which is targeted to be 15 per cent of the energy mix by 2020, the government is set to impose stringent penalties on errant discoms who fail to meet renewable purchase obligations.

This will be clubbed with a renewable obligation on generators by which all conventional power producers like NTPC will have to be accountable for some proportion of renewable power.

Significantly, while the minister highlighted the need to revive gas based power projects in the system to create a balance of base and peak power, he also spoke in detail about the reforms and corrective steps being taken to address coal supply and evacuation issues. Some of the steps he cited included increasing the number of rakes involving an investment of $ 1 billion and rationalising coal linkages and swapping to optimise costs and save almost Rs 6,000 crore.

Source:BS