Initiatives by Govt of India In Development of Power Since 1948

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Initiatives by Govt of India In Development of Power Since 1948

Initiatives by Govt. of India In Development of Power Since 1948

  1. The development of electrical power is the key for economic development in our country. The installed capacity of 1713 MW in 1950 has increased to 176990 MW today and
  2. the per capita consumption of electricity has increased merely from 15 kWh in 1950 to 704 kWh in 2010 which is about 47 times.
  3. In our country the per capita consumption of clectricity is still far behind as compared to other countries having the figures as 15000 kWh (USA), 1800 kWh (China) and the world average having the per capita consumption of 2300 kWh.
  4. Our country had planned to have the power growth of 1000 units per capita by 2012, though we are lacking behind from this target so far and expected to add only about 600 units.
  5. For development of power, the constitution of India, Electricity Act (supply) Act 1948 provides as a subject of power generation under the jurisdiction of both under centre and state.

The agencies responsible for development of power in centre and states are :

  1. Central Electricity Authority (CEA) for power planning at national level.
  2. State Electricity Boards (SEB’s) for planning and implementation of power development programmes in states.
  3. Above act also allowed from the beginning the few private licences to generate or/ distribute electricity in specified areas as designated by concerned state governments/ SEB’s.Government of India during their fifth plan (1974-79) got itself involved in a big way in generation and bulk transmission of power to supplement the efforts of state level.

It took initiative to develop coal and hydroelectricity resources. Accordingly following agencies were setup from time to time :

  1. National Thermal Power Corporation (NTPC) in 1975.
  2. National Hydro-electric Power Corporation (NHPC) in 1975.
  3. North Eastern Electric Power Corporation (NEEPCO) in 1976.
  4. Rural Electrification Corporation (REC) was set up in 1969.
  5. Tehri Hydro Development Corporation (THDC) in 1988.
  6. Natpha Thakri Power Corporation (NJPC) in 1988.
  7. National Power Transmission Corporation (NPTC) in 1989 and it was renamed as Power Grid Corporation of India Lid. (PGCIL) in 1992.
  8. Central Transmission Unilities (CTU).
  9. Power Trading Corporation (PTC) was recently set up to promote and monitor the mega power projects above 1000 MW capacity.

Amendment to Electric Supply Act in 1991 :

Liberalization of economy in 1991 opened the door for economic growth, investors confidence and opportunities for foreign investors to invest money. Therefore, in 1991, the amendment to Electric supply act was carried out having the following important features :

  1. Allowed private generating companies to set up power generating facilities and selling the power in bulk to the grid or other personnel.
  2. Allowed 100% Foreign Direct Investment (FDI).

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