SECTION III

REVIEW OF NINTH PLAN POWER PROGRAMME

 

The Ninth Plan Power Programme was finalised on the basis of a report of the Steering Committee on Energy and Power and the reports of  the various Experts Groups.  The main objective was achieving self-sufficiency in power supply, improving  quality of supply, reliability and bringing about economies and efficiencies in all operations.  The strategy for Ninth Plan was the completion of ongoing projects on priority on a time bound action plan both for generation and T&D.  It was suggested to formulate an action plan to accelerate clearances and construction of hydro projects involving time consuming clearances and long gestation periods.  It was emphasised to give thrust to the development of renewable sources which include –

                  Small hydro

                  Wind

                  Solar

                  Sea waves

                  Biomass  and

                  Co-generation

 

The strategy for Ninth Plan also envisaged induction of independent power producers in public, private and joint sectors for short gestation projects and for mobilising additional resources.  This was in spite of the disadvantage that any new entrant with associated risks may lead to higher cost.

      The following activities were also identified as thrust areas:

-                      Improvement of system operating conditions by reducing T&D losses

-                      Strengthening of the distribution system through system improvement programmes

-                      Renovation, modernisation and uprating of existing hydel plants on a time bound basis

-                      Bringing about reforms in areas covering organisation, resource mobilisation, tariffs and consumer relations.

-                      Take up measures for energy conservation and demand side management

-                      Improvement in commercial deals for supply from Central Pool for the benefit of the State.

 

 3.1 GENERATION

The strategy for the Ninth Plan was speedy implementation of the on-going projects on priority basis by ensuring interruption free work by the Board – contractors – Labour Unions.

 

      The revised Ninth Plan generation programme for the KSEB envisaged a generation capacity addition totaling to 613.6 MW as per details below.

                                                                              MW

      1.  Lower Periyar (H)                                                    180

      2.  Kakkad (H)                                                                50

      3.  Kuttiadi Extension (H)                                               50

      4.  Other Hydel Projects                                                 99

      5.  Brahmapuram Diesel Power Plant                           106.6

      6.  Kozhikkode Diesel Power Plant                               128

 


                                                                                          613.6

 


      In addition, the Ninth Plan power programme of KSEB also envisaged the following reservoir augmentation schemes.

 

                                                                                          MU

 

      1.  Azhutha Diversion                                                   57

      2.  Vazhikkadavu Diversion                                          24

      3.  Kuttiar Diversion                                                     37

      4.  Vadakkepuzha Diversion                                        12

      5.  Kuttiayadi Augumentation                                      223

 

Total revised financial allocation for the generation programme during Ninth Plan including advance action on new generation projects amounted to Rs.535.53 crores.

 

      The overall position regarding physical achievement during the Ninth Plan period is as given  in Table 3.1.

 

 

 

 

 

 

 

Table.3.1

Status of completed projects

 

Completed Projects

MW

Year of Commissioning

1. Lower Periyar (H)

180

1997

2.  Kakkad (H)

50

1999

3.  Kuttiadi Extension (H)

50

2001

1.      Other Hydel Projects

Peppara

      Maduppetty

      Kuthungal

      Poringalkuthu L.B.Extension

      Malampuzha

    

 

3

2

12

16

2.5

 

1996

1998

2001

1999

2001

2.      Brahmapuram Diesel Power Plant

106.6

1998

3.      Kozhikkode Diesel Plant

128

1999

    

549.1

 

 

 

      The progress on other generation schemes programmed during Ninth Plan viz. Malankara (10.5 MW) and Kuttiyadi Tail Race (3.75 MW) is held up.  Work on small hydel schemes of capacity totaling to 12.6 MW proposed to be implemented with technical and financial assistance of HIC/INSHP China is progressing at a slow pace. While most of the work on the diversion schemes viz; Azhutha and Vazhikkadavu have been completed, there has not been much progress on the other two schemes viz; Kuttiar and Vadakkepuzha.  The work on Kuttiyadi Augmentation although almost complete,  further work is held up due to dispute with the contractor.  Not much headway has also been made in respect of long gestation projects and new small hydel projects for which provisions for advance action has been made in the financial allocations. 

 

      The position regarding financial progress furnished by the KSEB indicates that although the allocation for generation projects was only an amount of Rs.535.53 crores, the expenditure up to August 2001 was Rs.910.25 crores. This has been made possible only by diversion of allocations for System Improvement Works and Renovation & Modernisation and  schemes with REC assistance.

 

In addition to KSEB’s own power projects, a few thermal projects by other agencies have been implemented.  Prominent among them is NTPC’s Thermal Power Station (350 MW) at Kayamkulam, the entire generation from which is allocated  to Kerala.  Another major project is that of BSES (private) with an installed capacity of 157 MW  which  were already been commissioned.  RPG’s Thermal Project (Pvt.) of 20 MW at Kasargode has also been commissioned.

 

      As regards the hydel projects like Bhoothathankettu (16 MW), Ullunkal (7 MW) and Karikkayam (15 MW) which have been earmarked for execution by private parties, not much progress has been made so far.  Meenvallom small hydro project of 3 MW capacity is under implementation by District Panchayat, Palakkad.

 

      The review of the Ninth Plan generation programme by KSEB reveals that there has been time overrun and consequent cost overrun in all the hydro projects completed by the Board during the Ninth Plan period.  Completion of most of the hydel projects as envisaged during the Ninth Plan indicates some improvement in project management by KSEB.  However this has to be sustained and further improved by KSEB so as  to achieve better results during the Tenth Plan period.


3.2   RENOVATION AND MODERNISATION

      It was estimated that 10% of the capacity of existing hydro stations could be increased through renovation and modernisation activities.  While some progress has been made in respect of Pallivasal, Sengulam and Panniar hydro generating stations, no break through has been achieved in taking up R&M works in respect of other hydro power stations.  Out of a total allocation of Rs.398 crores for R&M,  actual expenditure up to  31-3-2002 was only Rs.135.44 crores.  As stated earlier, the funds earmarked for this purpose have been diverted for completing normal generation works.

 

 

3.3    Transmission and Distribution

 

Shortfall in Transmission and Distribution programmes in previous plans has resulted in a very defective power system  and poor quality of supply.  Even as the Ninth Plan draws to a close, a number of projects on Transmission and Distribution remain as on-going schemes.

 

The Ninth Plan Strategy  of T & D had outlined the following steps :

 

§         Completion of on-going schemes

§         220 kV, 110kV and 66 kV line loading to be reduced.

§         No more 66 KV lines.  Upgrade to 110 kV wherever possible.  66 kV to be completely phased out in next 10 to 15 years.

§         11 kV to LT ratio to be gradually reduced

§         Resort to Three  Phase distribution wherever possible

§         Optimum use of capacitors

§         Optimisation of Transformer Capacities – large-scale conversion of distribution transformers into smaller size - existing large transformers to be relocated at concentrated load centres

§         While POWERGRID would be implementing EHV  transmission system, KSEB to concentrate on low voltage transmission network and distribution system

§         Energy audit to be conducted and both technical and commercial losses to be reduced on a phased programme.

§         Conduct power system studies and evolve the most cost-effective plan for additional transmission works to be undertaken in the second half of Ninth Plan.

 

The review of the Ninth Plan T & D programme does not indicate realisation of many of the above objectives. While most of the financial allocations has been  utilised, the State is yet to get the benefits from the investment.

 

 

3.3.1  TRANSMISSION

 On the transmission side, out of 4572 ckt km of transmission lines targeted for completion during the IX Plan period, only 1360 KM (30%) has been completed upto the end of the plan period.  Similarly, out of the 172 Nos.  of substations targeted for  completion, only 56 Nos (32.5 %) have been completed.  Details are furnished in Table 3.3.1 below.  The progress on the remaining works by and large remains tardy.

 

Table 3.3.1

PHYSICAL ACHIEVEMENTS  OF TRANSMISSION WORKS DURING

9TH FIVE YEAR PLAN

Particulars

1997-98

1998-99

1999-00

2000-01

2000-02

Total

 

Target

Achievement

Target

Achievement

Target

Achievement

Target

Achievement

Target

Achievement

Target

Achievement

 220 kV Sbstations(Nos)

5

2

3

2

1

1

Nil

Nil

3

Nil

12

5

110 kV Substations(Nos)

30

8

20

9

19

7

36

19

31

3

136

46

66 kV Substations(Nos)

7

2

Nil

1

2

Nil

3

Nil

12

2

24

5

220 kVDC line (circuit Km)

548

283

562

178

388

158.5

Nil

Nil

88.6

Nil

1586.6

619.5

110 kVDC lines (Circuit Km)

565

207

704

150

565

112.93

487

173.82

369.4

58.33

2690.4

702.08

66 kVDC (circuit Km)

63

25

Nil

1.2

98

Nil

59.23

Nil

74.44

12

294.67

38.2

 

Out of the total budgeted allocation of Rs. 875.5 crores for Transmission, an expenditure of Rs. 708.42 crores has already been incurred.  It has been pointed out that loans availed at high interest rates (15.5%) for specific works (for eg. 33 kV substations) have been diverted to non-plan purposes resulting in huge financial losses.  The fact that the overall expenditure is about 80% of the budgeted amount, clearly shows lack of prioritisation of works resulting in ineffective utilisation of funds.  Another major reason for poor performance in the execution of transmission works is the lack of  effective monitoring mechanism.  While KSEB had created additional units especially for monitoring the implementation of transmission projects they have not been functioning effectively due to inappropriate deployment and these units have been merely doing progress reporting.  A cursery look at the functioning of the monitoring mechanism in the KSEB suggests that it was not effective in foreseeing bottlenecks and tackling them.  There was also no mechanism to cut short delays caused due to slippage's so as to adhere to the original completion schedules.

  3.3.2   DISTRIBUTION

On the distribution side, the position regarding target and achievement in respect of various category of distribution works is given in Table 3.3.2 below:

Table 3.3.2

Physical Achievements of Distribution Works During IX Plan

Particulars

Target

Achievement  up to 9/2001

11 kV Lines (km)

11500

4137.5

LT lines (km)

33550

26894

Distribution Transformers (Nos)

11050

6151

Service Connections (Nos)

15,68,015

1,76,498

Agricultural Connections (Nos)

56,000

79,317

 

The above position clearly shows that the implementation of the distribution programme during the IX plan  went against the strategy adopted for implementation of the distribution programme.  It may be seen that  even the programme for HT and LT works did not conform to the strategy for bringing down the HT – LT ratio to 1:2.  Actual achievement in respect of new  HT and LT works during IX plan period corresponded to a HT-LT ratio of  1:4 which hardly helped to progressively bring down the  ratio to the level of 1:2.  New service connections both for agricultural and non-agricultural sectors exceeded the targets.  This coupled with the delay in implementation of HT distribution system at 11 kV and other system improvement works could adversely affect the reliability of supply and increase the system losses.

 

It is seen that out of budget allocation of Rs. 1086.53 crores for distribution, an expenditure of Rs. 871.36  crores has been incurred up to 9/2001.  This indicates diversion of funds  to other sectors as the allocation could have been fully utilised due to the short gestation nature of the distribution works.  The worst affected categories are 11 kV lines and distribution transformers ultimately affecting quality and reliability of supply. 

 

 

3.4   Non conventional and renewable sources of Energy

 

      ANERT is the nodal agency involved in the propagation and implementation of programmes on non-conventional and renewable sources of energy in the State.  These programmes are intended for gathering and disseminating useful knowledge in various fields of non-conventional energy, energy conservation and rural technology, conduct studies, demonstrate, implement and support implementation of schemes and projects in the fields.  The programmes are implemented under two heads – ANERT programmes and IRE programmes.

 

      Ninth plan earmarked Rs.70 crores for ANERT and Rs.49.50 crores for IREP.  Year- wise provision,  expenditure  in respect of the sector during IX plan period is given in Table 3.4 below.

 

                                                            Table 3.4

Year Wise Outlay and Expenditure During IX Plan(Rs.lakhs)

 

Sector

1997-98

1998-99

1999-2000

2000-01

2001-02

IX Plan

ANERT

2370