Lok Sabha Question No. 2610 (UNSTARRED), answered on 2018-12-27
Subject: Problem Faced by Power Sector
Ministry: POWER
Asked by: C. MAHENDRAN

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2610 TO BE ANSWERED ON 27.12.2018

## PROBLEM FACED BY POWER SECTOR

2610. SHRI C. MAHENDRAN:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  has  any  data  about  the  problems  being faced by the power sector in the country;
- (b)
- if so, the details thereof;
- (c) whether the power sector in the country is gripped by the lack of spending  on  research  and  development  of  renewables  and  transmission technology;
- (d)
- if so, the details thereof;
- (e) whether  the  funds  allocated  for  the  research  was  used  by  the Government to finance transition of States to GST; and
- (f) if so, the details thereof?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

(a) & (b) : There  has  been  a  drastic  reduction  in  peak  and  energy shortages in the country as compared to the situation about 5 years ago. The peak and energy shortages for the month of November, 2018 are 0.5% and 0.5% respectively, compared with peak and energy shortages of 3.7% and 4.0% respectively, in the month of November, 2013. However, some of the problems being faced by the power sector in the country are related to poor financial health of distribution companies, inadequate coal and gas supply, regulatory challenges, slow implementation of projects by developers etc.

............2.

(c) & (d) : The  Ministry  of  Power  allocates  funds  to  Central  Power Research Institute (CPRI)  for  its  various  research  schemes.  Rs.  90.8284 crore  have  been  allocated  by  Ministry  of  Power  for  the  period  of  three years from 2017-18 to 2019-20. Further, power sector CPSUs also allocate funds towards the R&D activities as per the R&D Policy of the Department of Public Enterprises. In addition, Ministry of Human Resources Development  is  also  implementing  two  schemes,  namely,  Impacting Research,  Innovation  and  Technology  (IMPRINT)  and  Uchhatar  Avishkar Yojana (UDY) for promoting research and development in various sectors including power sector.

(e) & (f) : Through Finance Bill 2010-11, a corpus called National Clean Energy Fund (NCEF) was created out of cess on coal produced/imported for  the  purpose  of  financing  and  promoting  clean  energy  initiatives, funding  research  in  the  area  of  clean  energy  or  for  any  other  purpose relating  thereto.  Subsequently,  the  scope  of  the  fund  was  expanded  to include  clean  environment  initiatives  also.  However,  the  Goods  and Services Tax (Compensation to States) Act, 2017 which has been notified on 12.04.2017, provides that coal cess, along with cess on pan masala, tobacco,  aerated  water,  etc.,  would  constitute  GST  Compensation  Fund and the same would be utilised to compensate the States for five years to compensate them for potential losses on account of GST implementation. After five years any amount left would be shared on 50% basis between centre and states.

**************