Lok Sabha Question No. 387 (UNSTARRED), answered on 2016-02-25
Subject: Power Tariff Policy
Ministry: POWER
Asked by: HEENA VIJAYKUMAR GAVIT, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT, RAJEEV SHANKARRAO SATAV, VINOD KUMAR BOIANAPALLI, VIJAYSINH MOHITE PATIL, NAGENDRA KUMAR PRADHAN, M. K. RAGHAVAN, VIJAY KUMAR S.R., T.G. VENKATESH BABU, BALASUBRAMANIAM SENGUTTUVAN, RAHUL RAMESH SHEWALE

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.387

## TO BE ANSWERED ON 25.02.2016

## POWER TARIFF POLICY

387.   DR. HEENA VIJAYKUMAR GAVIT:

DR. SHRIKANT EKNATH SHINDE:

SHRI VINAYAK BHAURAO RAUT:

SHRI SATAV RAJEEV:

SHRI B. VINOD KUMAR:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI M. K. RAGHAVAN:

SHRI S. R. VIJAYAKUMAR:

SHRI VENKATESH BABU T.G.:

SHRI B. SENGUTTUVAN:

SHRI RAHUL SHEWALE:

## Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  proposes  to  introduce  a  consumer  friendly  power tariff policy, if so, the details and objective thereof along with the time by which the policy is likely to be implemented;
- (b) the manner and the extent to which the consumer and suppliers are likely to be benefited therefrom; and
- (c) the  other  steps  taken/being  taken  by  the  Government  to  provide  round  the clock power supply?

## A N S W E R

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

( SHRI  PIYUSH GOYAL )

- (a) & (b) : The Union Cabinet on 20 th  January, 2016, has approved the proposal for amendments in Tariff Policy. The revised Tariff Policy has been notified in the official Gazette on 28 th  January, 2016. The objectives of this revised policy are to:
- (i) Ensure  availability  of  electricity  to  consumers  at  reasonable  and  competitive rates;
- (ii) Ensure financial viability of the sector and attract investments;
- (iii) Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimize perceptions of regulatory risks;
- (iv) Promote competition, efficiency in operations and improvement in quality of supply;
- (v) Promote generation of electricity from Renewable sources;
- (vi) Promote Hydroelectric Power generation including Pumped Storage Projects (PSP) to provide adequate peaking reserves, reliable grid operation and integration of variable renewable energy sources;
- (vii) Evolve a dynamic and robust electricity infrastructure for better consumer services;
- (viii) Facilitate supply of adequate and uninterrupted power to all categories of consumers;
- (ix) Ensure  creation  of  adequate  capacity  including  reserves  in  generation, transmission  and  distribution  in  advance,  for  reliability  of  supply  of electricity to consumers.

The  amendments  in  the  policy  will  benefit  power  consumers  and suppliers in multiple ways. It will ensure availability of electricity to consumers at reasonable and competitive rates, ensure financial viability of the sector and attract investments,  promote  transparency,  consistency  and  predictability  in  regulatory approaches  across  jurisdictions.  It  will  further  facilitate  competition,  efficiency  in operations  and  improvement  in  quality  of  supply  of  electricity  and  will  spur renewable power for a cleaner environment and protect  India's  energy security. It will boost the power sector and make its growth more sustainable.

- (c) : The following steps have been taken/being taken by the Government to provide round the clock power supply:
- (i) Capacity  addition  of  1,18,537  MW  (including  88,537  MW  conventional  and 30,000 MW renewable) during the 12 th  Plan, i.e. by 2016-17.  As against this, about 74871 MW from conventional sources has been achieved till 20.02.2016 and about 14,612 MW from renewable sources till 31.1.2016.
- (ii) Construction  of  1,07,440ckm  transmission  lines  and  setting  up  of  2,82,740 MVA transformation capacity during the 12 th  Plan, i.e.  by 2016-17. As against this,  80501  ckm  of  transmission  lines  and  228390  MVA  of  transformation capacity have been achieved till 31 st  January, 2016.
- (iii) Government  of  India  has  taken  initiative  to  prepare  State  specific  Action Plans for providing 24X7 Power For All (PFA) in partnership with the States.

(iv) Two new schemes are being implemented by the Government of India, namely, Deendayal  Upadhyaya  Gram  Jyoti  Yojana  and  Integrated  Power  Development Scheme for strengthening of sub-transmission and distribution networks and for segregation  of  agricultural  feeders  to  give  adequate  and  reliable  supply  and reduce line losses. (v) Promotion  of  energy  conservation,  energy  efficiency  and  other  demand  side management measures. (vi) Central  Government  has  notified  a  new  scheme  namely  Ujjawal  Discom Assurance Yojana (UDAY) on 20.11.2015 for Operational & Financial Turnaround of   Discoms. (vii) Expeditious resolution of issues relating to Environmental and forest clearances  for  facilitating  early  completion  of  generation  and  transmission projects. (viii)  Providing  support  from  Power  System  Development  Fund  for  stranded  gas based generation.

***********