Lok Sabha Question No. 113 (UNSTARRED), answered on 2023-02-02
Subject: Improvement in Generation and Distribution of Power
Ministry: POWER
Asked by: Pushpendra Singh Chandel

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.113

## ANSWERED ON 02.02.2023

## IMPROVEMENT IN GENERATION AND DISTRIBUTION OFPOWER

- †113.  SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  has  taken  any  special  initiative  to  bring  reasonable improvement in generation and distribution of power;
- (b) if so, the details thereof;
- (c) whether the Government has also made any joint efforts to settle the bill payments of the State Governments; and
- (d) if so, the details thereof?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) to (b) : Yes, Sir.  The following steps have been taken by the Government to bring improvement in generation and distribution of power:

- (i) From 2014 till 31.12.2022, 175 GW of power generation capacity has been added.
- (ii) 173459 ckt kms of transmission lines has been added to our grid, connecting the whole  country  into  on  grid  capacity  of  transferring  112  GW  power  from  one  corner  of country to another.
- (iii)  Under  DDUGJY/Saubhagya/IPDS the Distribution system has been strengthened at a cost of Rs. 2.02 Lakh Crore-adding 2927 new substations, upgrading 3964 substations and adding 8.48 lakh ckt km of HT/LT lines etc.
- (iv)    100%  FDI  through  automatic  route  is  allowed  for  projects  of  power  generation (except atomic energy), transmission, distribution and trading.
- (v)    Notification  of  Revised  Tariff  Policy  on  28.01.2016  with  various  provisions  to encourage private sector participation in generation as well as in transmission.
- (vi)  Notification of Late Payment Surcharge Rules to bring back financial viability of the power sector in  the  country  and  thereby  attract  investments.  The  Rules  have  not  only ensured that the outstanding dues are liquidated but have also ensured that the current dues are paid in time.

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

(vii)    In  order  to  promote  generation  from  renewable  sources  of  energy  and  attract investments in this sector, Inter State Transmission System (ISTS) charges for transmission of the electricity generated from solar and wind sources have been waived for projects to be commissioned by 30.06.2025. Further, ISTS charges on transmission of electricity  generated  from  new  hydro  projects  waived  for  18  years  from  the  date  of commissioning.

(viii)    Green  Open  Access  Rules,  2022  have  been  notified  on  06.06.22  for  promoting generation, purchase and consumption of green energy.

(ix)  Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to Renewable Energy (RE) developers for installation of RE projects at large scale.

(x)    With  the  objective  of  improving  the  quality  and  reliability  of  power  supply  to consumers  through  a  financially  sustainable  and  operationally  efficient  Distribution Sector  in  the  country  Government  of  India  has  launched  Revamped  Distribution  Sector Scheme  (RDSS)  in  July  2021.  The  scheme  aims  to  reduce  the  Aggregate  Technical  & Commercial  losses  (AT&C)  to  pan-India  levels  of  12-15%  and  Average  Cost  of  SupplyAverage Realizable Revenue (ACS-ARR) gap to zero by 2024-25. The scheme has an outlay of Rs.3,03,758 crore and an estimated Gross Budgetory Support (GBS) of Rs.97,631 crore from the Central Government.

(xi)  These  measures  have  contributed  to  the  present  status  wherein  power  availability has gone upto 22½ hrs on average in rural areas and 23½ hrs in urban areas.

(c) to (d) : Government of India promulgated Electricity (Late Payment Surcharge and Related  Matters)  Rules,  2022  in  order  to  ensure  discipline  in  the  power  sector  value chain.  These  rules  entail  obligations  upon  the  DISOCMs  to  clear  their  legacy  dues  as existing on 03.06.2022 in a time bound phased manner in equated monthly installments with benefits of non applicability of late payment surcharge after 03.06.2022. However, failure to repay the instalment of legacy dues in accordance with the Rules would invite Late  Payment  Surcharge  (LPS)  on  the  entire  outstanding  amount.  These  rules  also provide  penal  framework  to  ensure  time  bound  clearance  of  current  dues  through establishment of a Payment Security Mechanism as provided in PPA through disincentives of progressive withdrawal of open access as well as power regulations if the provisions of the Rules are not followed.

RDSS  also  aims  at  implementation  of  prepaid  smart  metering  for  all Government  offices. It is expected  that this will ensure timely payment  of  all Government  Departments  electricity  dues  including  dues  from  Urban  Local  Bodies (ULBs)/ Rural Local Bodies (RLBs) to the DISCOMs.

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