Power Generation Up 3.8 Per Cent

Overall power generation has increased 3.8 per cent in 1996-97, compared with the previous year. The increase is due to an increased contribution from thermal stations, though the hydel sector's contribution has declined.

The figures for 1996-97 show that hydel generation has decelerated 5.4 per cent while thermal generation has grown by around 5.8 per cent. Hydel generation has, however, shown a slight turnaround in 1997-98.

In a bid to increase the overall power availability in the country, the Economic Survey points out an important measure that has been taken to increase the contribution from captive power plants to the grid. As a policy measure, a 50 per cent-threshold level has been prescribed for the industry's own consumption from the captive units and capacity in excess of this level is permitted for grid sale.

Estimates provided in the Survey show that there is a potential of around 11,600 mw in terms of captive units which can be used to meet the country's requirements.

The Survey, however, points out that huge transmission and distribution (T&D) losses continue to be the bane of the state electricity boards. T&D losses have marginally declined to 21.1 per cent in 1994-95 from 21.8 per cent in 1992-93.

Even this marginal decline does not mean much as the present loss figure is way above international standards. The Survey blames the high T&D losses mostly to "high pilferage, substantial energy being sold at low voltages, inadequate investments in distribution systems and sparsely distributed loads over rural areas."

The Survey points out that the state governments have undertaken measures to revamp SEBs. The states which have already initiated reforms include Orissa and Haryana, while Rajasthan, AP, , Gujarat, MP, TN, and Assam are expected to follow suit.

The Central government has also made a similar move by bringing the Central Electricity Regulatory Commission into existence through an ordinance.