State unlikely to provide 'power for all' by 2012

The Karnataka government is unlikely to achieve ‘Power for all by 2012’ due to lack of concerted efforts for augmentation of capacity by the state-owned

Karnataka Power Corporation Limited (KPCL), according to an audit report of the Comptroller and Auditor General of India (CAG) for the year 2009-10.

KPCL’s project management was ineffective as instances of time overrun were noticed. New hydro projects proposed to be taken up by the company were either awaiting clearance from ministry of environment and forests (MoEF) or held up due to local agitation. Renewable energy sources in the state also remained underutilised, the report said.

The Karnataka Electricity Regulatory Commission (KERC) had forecast, in

December 2008, a peak requirement of 10,120 Mw by the end of 11th plan period (2011-12) with energy requirement of 58,388 million units. The peak demand for the state in 2009-10 was 8,094 Mw against the installed capacity of 10,387.81 Mw. The peak demand was met only to the extent of 7,049 Mw (i.e., 67.86 per cent of installed capacity) due to capacity constraints, the CAG report said.

However, to meet the peak demand of 10,120 Mw forecast by KERC for 2011-12, the required installed capacity worked out to 14,913 Mw (at the peak rate of 67.86 per cent met during 2009-10).

Hence, the shortfall of 4,525 Mw has to be commissioned between 2010-11 and 2011-12 so as to achieve the objective of providing power for all by 2012.

“We have observed that only six projects a total capacity addition of 2,053 Mw were projected for completion by the end of 2012, still leaving a gap of 2,472 Mw,” the CAG report said.

The government had informed in September 2010 that besides the above planned additions, capacity of 1,000 Mw from renewable energy sources and 500 Mw from the third unit of Bellary Thermal Power Station (BTPS) would be added by 2012.

The CAG has observed that the KPCL was yet to (till September 2010) finalise the contractor for execution of BTPS and as per the detailed project report, the completion was projected as three years from date of placement of order, which is beyond the year 2012. The details of projects proposed to be taken up under renewable energy sources (1,000 Mw) were not available.

“We also observed that even after considering the government’s contention, there existed a shortage of 972 Mw. In view of the above, the objective of providing power for all by 2012 may not be achieved,” the audit report stated.

The report has also found that the operational performance of thermal power stations was sub-optimal due to fixation of generation targets below the available hours, low plant load factor, inefficient fuel management, and failure to undertake timely renovation and modernisation and life extension schemes. The consumption of coal was in excess as compared to designated parameters.

The CAG, however, has recommended the KPCL to streamline procedures for procurement, acceptance and consumption of coal and strive to improve efficiency. It has also suggested them to analyse or investigate reasons for excess consumption of fuel, higher outage hours among others.

It has asked the government to consider setting up a task force on priority so that the objective of providing power for all by the end of 2012 is achieved.