Lok Sabha Question No. 4283 (UNSTARRED), answered on 2020-03-19
Subject: Growing Demand of Power
Ministry: POWER
Asked by: Durga Prasad Rao Balli

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.4283 TO BE ANSWERED ON 19.03.2020

## GROWING DEMAND OF POWER

4283. SHRI BALLI DURGA PRASAD RAO:

Will the Minister of POWER be pleased to state:

- (a) the steps the Government proposes to take to meet the growing demand for electricity as projected to triple between 2018 and 2040; and
- (b) whether inefficient State Government-owned power plants, underinvestment  in  transmission,  under-priced  electricity,  high  losses  of  distribution utilities, groundwater depletion apart from cheap electricity are the key challenges  to  India's  power  generation  sector  and  if  so,  the  steps  being taken/proposed to be taken by the Government in this regard?

## A N S W E R

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  POWER,  NEW  & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

( SHRI  R.K. SINGH)

(a) : As  per  the  19 th   Electric  Power  Survey  (EPS)  report  brought  out  by Central Electricity Authority, the demand of electricity is likely to increase by 231 percent in terms of energy and 237 percent in terms of peak demand by the year 2036-37, as compared to 2018-19.

As per the National Electricity Plan (Generation) notified in 2018, the all India power generation installed capacity by the end of 2026-27 is projected to be 6,19,066 MW which includes both conventional and renewable sources. This projected installed generation capacity is  expected  to  meet  the  demand projection  for  the  year  2026-27  made  by  the  19 th   Electric  Power  Survey.  The technology  is  fast  changing  and  so  is  the  generation  mix.  The  optimum generation mix for 2026-27 will depend on technological and other developments, specially with regard to renewable energy and storage of electricity.

……….2.

(b) : India  has  moved  from  being  an  energy  deficit  country  to  power surplus  country.  Country  has  power  generation  installed  capacity  of  369  GW against the peak demand of 183 GW occurred during the current year 2019-2020 (upto  February  2020).  We  have  developed  adequate  transmission  systems  to transfer electricity across the country. Power generation sector in the country is facing  challenges  because  of  poor  financial  health  of  Discoms  mainly  due  to higher  losses  of  power  distribution  utilities.  To  improve  financial  position  of Discoms,  Government  of  India  has  taken  various  reform  initiatives  like  UDAY (Ujjawal  Discom  Assurance  Yojana),  Integrated  Power  Development  Scheme (IPDS) and Deen Dayal Upadhyaya Gramin Jyoti Yojana (DDUGJY).

Electricity tariff for different class of consumers is determined by the State  Commissions  after  considering  all  costs  including  power  purchase  costs from state generating plants.  As per provisions of section 65 of the Electricity Act, State Governments can provide subsidy to consumers on tariff determined by the  State  Commissions.  Issue  of  depletion  of  ground  water  due  to  wasteful consumption of electricity has been recognized in the Tariff Policy issued by the Central Government. It recognizes the need for levy of reasonable user charges to the  consumers.  It  provides  that  the  subsidized  rates  of  electricity  should  be permitted  only  up  to  a  pre-identified  level  of  consumption  beyond  which  tariffs reflecting efficient cost of service should be charged from consumers.

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