Transmission and Distribution - Role of
Indian Electrical Equipment in the XII Year
Plan.
Presentation by: Sterlite Grid
Ajay Bhardwaj COO
Index
1. Sterlite Technologies – A Vedanta Group
Company.
2. Transmission Industry in India – Growth
Prospects.
3. Sterlite Technologies Presence in Private
Transmission Sector.
sterlitetechnologies.com | 3
STERLITE TECHNOLOGIES
A Vedanta Group Company
sterlitetechnologies.com | 5
sterlitetechnologies.com | 6
Transmission Industry In India
Growth Prospects
Snapshot of Transmission Industry
Xth Plan registered maximum growth in terms of capacity addition through 400 kV lines (backbone of transmission
infrastructure in India)
300000
Transmission Lines (in CKm)
400,000
200000
Cumulative Substation Capacity Addition (in MVA)
CKm
300,000
200,000
100000
0
Upto 6th plan
7th
(1987)
plan*(1992)
765 kV
8th plan
(1997)
HVDC+/-500kV
9th plan(2002)
400 kV
10th plan
(2007)
230/220 kV
Upto
Feb 2011
(11th plan
progress)
MVA
100,000
Upto 6th plan
(1987)
765 KV
10th Plan: 2002-07, 11th Plan 2007-12, 12th Plan: 2012-17
Huge thrust on Transmission sector, expected to
increase further to USD 40 Bn in 13th Plan
7th
8th plan (1997) 9th plan(2002)
plan*(1992)
HVDC+/-500kV
400 kV
10th plan
(2007)
230/220 kV
Upto
Feb 2011
(11th plan
progress)
Clear thrust on T&D sector reflected in the increasing
plan expenditure on T&D
120
T&D as % of Generation Capex
USD Bn
100
80
28
60
0
100%
76%
80%
40
20
36
9
14
10th Plan
Distribution
57
61
11th Plan
12th Plan
Transmission
60%
79%
46%
40%
20%
0%
Source: CEA, Analyst Reports
Share in 11th Plan Share in 12th Plan Share in 13th Plan
Thrust on transmission Sector reflecting in the capacity buildup and planned
expenditures for the 12th Plan
High Growth Industry
Investment of USD 36 bn is expected in transmission sector over FY13-17
120
100
Transmission Sector Planned Expenditure
Increasing
USD Bn
80
28
•
India has huge power deficits with
peak deficits in range of 10.6%* in
FY2012
•
An expenditure of around USD 247
bn has been planned for the Indian
power sector in the 12th five year
plan (2013-17)
•
Of this, about USD 36 Bn
Investments planned in the power
transmission in 12th five year plan
•
Open access and power trading will
ensure need of greater investment
•
Significant investment will come
from private sector
•
About ~29% of this investment ~
USD 10.50 Bn anticipated from
private sector
36
60
40
20
57
61
11th Plan
12th Plan
9
14
0
10th Plan
Distribution
Transmission
Planned Expenditure ( FY 13 – 17)
Central Sector- Power Grid Corporation (PGCIL)
Cost (USD bn)
Source: CEA
20.0
State Sector- Expected to be executed by State Funding
5.5
State Sector- Expected to be executed by Private Sector *
5.5
Private Sector
5.0
Sub Total Private Sector
10.5
Total
36.0
Source: CEA,
Planning Commission Working Committee Report, Analyst Reports
Huge Investment planned in the Indian transmission space, very attractive
growth opportunities
*Peak Deficit
1US$= Rs.50
Government Policies point to huge thrust to
transmission sector
R-APDR
Program
Power
Exchanges
Government program to
bring down AT&C loss
and revamp transmission
lines with outlay of USD
10 bn in XI th plan
9 High Capacity Power
Transmission Corridors at a
CAPEX of USD 12 bn
Boost due to open access
and power trading
Long term power
demand and
correlation
Aggressive generation
targets coupled with inadequate
investments in transmission
HCPTC
Transmission
Sector
Poised for high growth and
offering huge potential for
private players
RGGVY
Rural electrification Program
of Government with outlay of
USD 5.6 bn in XI th plan
RGGVY : Rajeev Gandhi Grameen Vidutikaran Yojana (Rural electrification program), R-APDR : Restructured Accelerated Power
PageProgramme,
10
Development and Reforms
HCPTC- High Capacity Power Transmission Corridors
Sterlite Technologies Presence in Private
Transmission Sector
Map – Sterlite’s Projects
CoD by Jan 2013
CoD by Mar 2014
CoD by Mar
2014
CoD by Mar
2014
JTCL
CoD by Mar 2014
ENICL
BDTCL
JTCL
BDTCL
ENICL
CoD by Mar
2013
Sterlite has emerged to be one of the most competitive and
competent private sector transmission company
• Sterlite has emerged to be one of the top private sector transmission companies in
India. The company has already bagged three (3) out of eight (8) IPTC projects with a
total value of INR 4000 crores.
• The project entails about 2,200 km of transmission lines and 2 sub-stations.
• Details of projects executed by Sterlite Technologies
S.No.
1)
2)
3)
4)
5)
6)
7)
Name of the project
Date of Award
Zero Date (Start date of Project)
Construction Period (in years)
Expected date of completion
Line Length (in kms)
Sub stations
Region / States covered
BDTCL (Project 2)
31-Jan-11
31-Mar-11
3
31-Mar-14
1000
2
1) Maharashtra
2) Gujarat
3) Madhya Pradesh
JTCL (Project 3)
19-Jan-11
31-Mar-11
3
31-Mar-14
600
None
1) Madhya Pradesh
2) Chhatisgarh
8)
•
Estimated Project Cost including
IDC (Rs. In crores)
9)Source:
Current
CERC,status
Adoption of tariffs
ENICL (Project 1)
7-Jan-10
31-Mar-10
3
31-Mar-13
450
None
1) Assam
2) Bihar
3) West Bengal
Private and confidential
1000
1700
-Financial closure achieved -Construction in progress
-Construction in progress -Financial closure
complete
1200
-Ordering in advanced
stages.
-Financial closure in
advanced stage, expected
by May 2012
Engineering & Innovation
In house tower design for BDTCL & JTCL project.
1. Our towers are on an average 10% lighter than industry Benchmarks.
2. Our BDTCL towers are user friendly for site erection, this will save one
month construction period
Usage of Helicopter for detailed Line Survey
1. Resulting in most optimum Tower Spotting and Route utilization.
2. All key construction constraints are known up front.
Future Innovation
Usage of helicopter in Tower erection and stringing in critical areas
Usage of high resolution satellite imageries for Tender survey
Innovative approach in forest (statutory) clearances.
It has been taken up with structured approach from day 1. As a result, expected
clearance is 6 months prior to conventional time line.
Sub station foot print reduced resulting in reduced costs.
Value Chain in Grid Business
Simplest Business Model within all asset classes of Infrastructure.
Create collaborative eco system among
various Stake holders
In order to achieve faster growth,improved productivity & more efficient
usage of resources it is essential that a more trusting relationship is
built & created among different stake holders.
 Between Developers and Regulators.
 Between Developers and Planning bodies like CEA & CTU.
 Between Developers and EPC Contractor & Suppliers for
transmission sector.
Create collaborative eco system among
various Stake holders
1) Collaborative approach in project award and execution. We need to
move away from the culture of creating defenses by buyers and
sellers to a more cooperative model which reduces the total risk
being assessed by buyer and supplier. NGC procurement model is
an established example in this regard.
2) Long term relationship instead of project based tendering in each
instance. This will lead to lower cost of procurement for buyer and
sellers will have assurance of better planning.
3) Sellers offering and organizing long term credit. Private sector
developer will be looking for cheaper funds and lower involvement of
fund and equity. Suppliers can help on this aspect.
Create collaborative eco system among
various Stake holders
4) Following the telecom model we need to develop a model where the
payment for the goods & services is spread over a longer period
involving both construction and operation.
Longer the payment during opex better it will be for developers.
5) Developers and goods & service providers also need to work closely
with planners to bring more innovation solution on board to make the
most optimize use of natural resources.
As a private sector developer we want to see a paradigm shift in the
way business is done so far.
Thank you