India Signs Loan Agreement with ADB for $50 Million Loan To Boost Power Generation Capacity in Assam

The Asian Development Bank (ADB) and the Government of India signed a $50 million loan agreement for the second Assam Power Sector Investment Program which aims to build up the capacity of power generation and distribution systems to meet the growing energy demand in the state of Assam.

The first tranche loan of the $300 million multi-tranche financing facility will fund generation capacity enhancement and distribution efficiency improvement subprojects in the state. 

Shri Tarun Bajaj, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, who signed the agreement on behalf of Government of India said that more than a third of households in the State face daily electricity cuts of 5 to 6 hours, many important businesses, such as the tea gardens, still aren’t connected to the grid, and in peak periods Assam has to buy up to 15% of its power from independent producers at very high cost, said He added that the project will finance investments to augment and improve generation capacity through the replacement of an inefficient generating plant and construction of new hydropower plant. 

Ms. Teresa Kho, Country Director of ADB’s India Resident Mission, who signed the loan agreement for ADB said that ADB has supported Assam’s power sector since 2003 with five loans totaling $450 million, which have helped the State enact key reforms and improve transmission and distribution systems. She further said that the new loan will further support Assam to increase capacity and efficiency of power generation to meet growing local and national demand.The project agreements were signed by Sh. V. B. Pyarelal, Additional Chief Secretary (Power) on behalf of the Government of Assam and Shri K. V. Eapen, Chairman, Assam Power Generation Company Limited (APGCL). 

The project is expected to be completed by 31 December 2018.

 

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NGT seeks clarifications on Subansiri hydro power project...

 

The National Green Tribunal (NGT) has issued notices to the ministry of environment and forests (MoEF), ministry of power, National Hydroelectric Power Corporation (NHPC) and the state governments of Assam and Arunachal Pradesh on the issue of releasing minimum sustenance water at the rate of 450 cumecs from the Lower Subansiri dam throughout the year in order to ensure the river's ecological health.

The tribunal asked the respondents to file their replies within January 29.

The notice came after the Assam Public Works (APW), an NGO, moved the tribunal seeking clarifications on how the project will affect the Subansiri river which is located downstream of the dam site. The project is believed to have an adverse impact on riparian areas and aquatic life.

The APW approached the tribunal after the Supreme Court declined to intervene in the case saying it is a technical matter requiring expert opinion in September last year.

"As per initial RTI information, the NHPC and MoEF planned to release water at the rate of six cumecs for 20 hours when the project will be 'off-grid' (not generating electricity). This implies that no water would be released into the river, home to our national aquatic animal-the river dolphin, for a long period of time," said Abhijeet Sarma, who petitioned on behalf of APW.

Sarma added, "After constant public pressure, the NHPC announced that it will release between 220 to 250 cumecs of water by keeping one turbine running. This is far less than the minimum sustenance flow of the river. Who can guarantee that the turbine will be kept running continuously? Any disruption of flow, even for a short period, will annihilate the downstream biota of the river."

In the petition, APW asked for an opening in the dam at a suitable level so that the sustenance flow of 450 cumecs can be maintained without human control. It also requested that a 'fish ladder' be located at the dam's opening for fish migration.

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50-MW Gas based power plant to come up by ONGC in Cachar of Assam...

 

A gas-based power plant with a capacity of 50 MW is being set up at Sidubi locality in Assam's Cachar district.

An official of the Central Assam Power Distribution Company said the company has come to an understanding with the Oil and natural Gas Corporation Ltd (ONGC) for supply of the gas necessary for the project. He said the ONGC will supply gas for its Sonabarighat well near Silchar.

He said work has been started for the project, which is to come up on an area of 10 acres of government land. Work on the project will be completed within the next three years, the official said.

He said once the project is completed, the gap between demand and supply of power in Barak Valley will be substantially reduced. While the valley needs 100 MW of power daily, it gets less than half of this amount, causing a lot of inconvenience to people.

At present, Barak Valley has practically no source of power of its own. Private real estate company DLF had earlier started two power projects with the help of gas supplied by the ONGC from its nearest fields. But, after a few years, gas supply was stopped at both the projects, causing the power plants to shut down.

In 2009, BHEL, the Power Finance Corporation and the state government had signed a memorandum of understanding for setting up of a 250-MW thermal power plant at Digarkhal in Cachar district on an investment of Rs 1000 crore. But, the project is yet to see the light of the day as work is yet to start.

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NHPC's Subansiri Hydro project cost may double to Rs 12,000 crore...

 

The total cost of state-owned NHPC's Subansiri project in Assam is likely to be around Rs 12,000 crore, nearly double than envisaged initially, following delays on account of various hindrances.

The country's largest hydro power producer, NHPC is executing the 2,000-MW Subansiri hydel plant in Assam. The original cost of the project was Rs 6,285 crore.

"Local issues, contractual issues, geological surprises, delay in decision making and poor risk-taking assessment have impacted the progress on the Subansiri project, which is now likely to cost nearly Rs 12,000 crore," a senior company official told PTI.

The project has been stalled since December 2011, after the local people raised issues related to its safety and downstream impact.

"Assam also wanted to increase its total share of power from the project," the official said, adding that the state was earlier granted 208 MW of electricity from the hydel station which has now increased to 300 MW.

Besides, the state is expected to get 25 MW or more free power from the plant which is likely to resume construction work next month.

The project, earlier expected to be fully commissioned by December 2012, is now likely to be operational by December 2017.

We are hopeful that the construction work on the project would start again from December, next month," the official said.

According to sources, the Power Ministry had a meeting with the state government earlier this month and achieved some breakthrough on the issues.

Once commissioned, Subansiri (250x8) will be India's biggest hydroelectric project. The project is located near North Lakhimpur on the border of Assam and Arunachal Pradesh.

The estimated annual energy generation from the project is 7,421 million units.

NHPC generates 5,702 MW electricity from 17 hydel stations in the country. As many as seven power stations with total capacity of 4,095 MW are under construction.

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AERC approves 2.4 pc hike in power tariff...

 

The Assam Electricity Regulatory Commission (AERC) today announced the multi-year power tariffs for the financial years of 2013- ’14, 2014- ’15 and 2015- ’16, which will come into force from December 1.

The Commission has approved of an average tariff increase of 2.4 per cent for the financial year of 2013-’14 and has retained the fixed/demand charges at the existing level for all categories.

However, through its tariff order, the Commission has retained the tariffs of the ‘Jeevan Dhara’ category and the first slab of the ‘Domestic-A’ category (first 4 units per day or first 120 units per month) at the existing levels, with the intention of reducing the burden on these categories, and also since the level of cross-subsidy is within limits.

It needs mention here that the Government of Assam has assured a Rs 200 crore tariff-related subsidy and it has particularly mentioned Rs 1.10 per unit subsidy for the ‘Jeevan Dhara’ category and Rs 0. 70 per unit for the ‘Domestic-A’ category for the first four units per day, that is 120 units per month. This will benefit 11.27 lakh ‘Jeevan Dhara’ category consumers and 15.28 lakh ‘Domestic-A’ category consumers, said AERC sources.

In real terms, the tariff for these two categories will actually be lower than the existing tariff on account of the State Government subsidy being provided to them, the sources said. It has reduced the tariffs for the ‘Public Water Works’ category (both HT and LT) and ‘Public Lighting.’

The Commission has also reduced the tariffs for the ‘Low Tension (LT) General Purpose Supply’ category since this category, which primarily includes premises of charitable organisations, places of worship, small government offices, etc., may not be required to subsidise other categories. Further, the Commission has retained the existing tariff differential in the time of day (TOD) tariffs for different time slots during the day so as to ensure that the demand side management (DSM) and energy conservation measures are continued.

The Commission has approved of a marginal increase, that is 2.4 per cent, in tariffs of certain categories of consumers like high tension (HT) industries, tea, coffee and rubber industries, ‘Domestic-B’ category (above 5 KW- 20 KW load), while keeping in view the overall objective of maintaining the cross-subsidy within the limit of plus-20 per cent, said the sources.

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NHPC to supply 300 MW unallocated power from Subansiri Hydro Project to Assam State...

 

Bowing to pressure, the National Hydroelectric Power Corporation (NHPC) has agreed to supply 300 MW of unallocated power to Assam from the Subansiri (Lower) Hydroelectric Power Project, in addition to 233 MW from the sub-lower Hydroelectric Project.

In a note circulated by the Ministry of Power regarding the updated status of the 2000 MW project, which has been mired in controversy, it claimed that the Technical Advisory Committee (TEC) constituted by the Planning Commission examined the various issues and based on its recommendation, the Dam Design Review Panel (DDRP) was formed, which in its recommendation, has validated the seismic design parameter adopted in the design of the project.

The note said that all downstream issues were examined by the Joint Steering Committee (JSC) and the NHPC has agreed to implement its recommendation having an implication of Rs 470 crore. It has also been decided to give 300 MW unallocated power to Assam, in addition to 233 MW including 25 MW free and 208 MW paid power – it is getting from the sub-lower Hydroelectric Project.

The note further said that certain design innovations in the energy dissipation arrangement (EDA) have been recommended as additional safety measures to allay the apprehensions and concerns expressed by some sections of the society relating to safety of the dam. Besides, the quantum of minimum continuous release, which was 6 cumec and one of the major concerns, has been reviewed and it has been agreed to maintain minimum continuous flow of 250-300 cumec operating one unit continuously, the note said.

There would be an insignificant adverse impact downsteam and benefits are manifold to boost economy, lifestyle and prosperity of the area, the Ministry of Power said.

The Subansiri Lower Project has been stalled for the last couple of years following agitations spearheaded by the All Assam Students’ Union (AASU) and Krishak Mukti Sangram Samiti and other anti-dam groups citing concerns over its downstream impact in Assam.

About flood moderation, it was stated that the Subansiri Lower Project is a run-of-the-river project with small pondage for peaking power, as well as to attenuate the floods during the Monsoon season by operating the reservoir at low level. The project would help flood having flood attenuation by regulated discharge of water in the river. During flood period, the reservoir would be operated 15 m below the Full Reservoir Level (FRL) having flood cushion of 442 Mcum.

Since it has been planned for flood moderation of the Subansiri river, when operated in integration with Subansiri (middle) and upper, their integrated operation can moderate hundred-year return flood below SLP.

The Thatte Committee that was appointed to go into the issue has categorically stated that there can be no flood control without dams.JSC has reiterated that in the Subansiri Basin, integrated reservoir operation of the Subansiri lower, middle and upper is required for effective flood moderation downstream.

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