| ACTIVITIES
OF THE CORPORATE PLANNING.
The
Directorate of Corporate Planning was created
in Gridco during the year 1995.
The
Corporate Planning was assigned with the following main
activities :
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Long
term financial projection and overall prospective
planning.
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Co-ordination of reform-restructuring process.
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Coordination with Project Management Unit.
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Liaison with external agencies like G.O.O, CEA,
World Bank etc on corporate policy and reform/restructuring.
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The
Reform & Restructuring Process is refreshed below :
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Electricity cannot be stored to any
significant extent and hence has to be used as and when
generated. But being the essential infrastructure that
it is, efforts are on to see that it is generated, transmitted
and distributed efficiently and is reliable and reasonably
priced.
The
non commercial functioning of the State Electricity
Board such as insufficient capitalization, low tariffs,
poor bill collection and the burden of having to undertake
non-remunerative projects on behalf of the state, without
appropriate compensation contributed to the growth of
inefficiency in the power sector, ultimately eroding
the financial base of the State Electricity Board.
It
was no longer possible for the state to support the
expenses of the power sector such as investment in generation,
transmission and distribution and to provide a substantial
amount of annual subsidy to the Board in order to earn
a minimum statutory return of 3% on net fixed assets.
Hence,
it was recognized that the overall economic development
of the state was threatened as long as power supply
constrained industrial development
and the financial losses of the power sector burdened
the public finance.
In
view of the above backdrop, the GOO embarked to reform
and restructure the power sector in
the state.
Reform
means change with the intension of making things better.
The main objective of the reform was to unbundle
generation, Transmission & Distribution and to establish
an independent and transparent Regulatory regime
in order to promote efficiency and
accountability and to invite substantial
private sector investment.
In
India, the primary reason was to see that the State
Utilities become financially viable and a sense of professionalism
is brought into the Sector to :
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Make power supply more efficient.
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Provide assured power supply to sustain industrial
growth in the State.
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Meet the investment needs of the sector.
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Bring in more than one player with a level playing
field, to foster a climate of fair play and transparency
in all matters related to the power sector, so as
to reassure private investors of a fair return.
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To improve the efficiency of the system and the
quality of service to the consumers.
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To reduce reliance on Governmental support for expansion
of the power sector by attracting private investment.
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Bring in competition through the Govt players’
presence inorder to ensure that the private players
don’t form cartels to dupe the public.
The
identified Reform Program involves :
- Setting
up of Regulatory Commission at the Centre and the
States.
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Unbundling of SEBs into Corporate entities.
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Privatisation of distribution.
The Government of Orissa first pioneered the process
of reform in the State of Orissa, in Nov’1993
in an organized manner. It is closely linked to the
New Economic Policy (NEP) of the Government of India
initiated in 1991.
For
this purpose the GOO established two key committees
namely :
The
Steering Committee chaired by the Chief Secretary.
The Task Force Committee chaired by
the Principal Secretary, Department Of Energy, GOO.
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For
the above activities, the following works were undertaken
by the Corporate Planning, Gridco, under the reform / restructuring
process :
PROJECT
IMPLEMENTATION :
A
reform management organization, was set up under the Task
Force Committee, headed by a Chief Engineer, as the full time
Reform Project Manager, to coordinate and
manage nine Working Groups. The working groups
were created to focus in specific aspects of the power sector
reform.
A
consortium of international consultants was engaged in Aug’1994
to advice on the Reform & Restructuring. During the 1st
six months consisting of the Phase-I of the
Reform Project, the Reform Plan was finalized.
The Phase-II of the Reform Project started
in March’1995, commencing the implementation
phase. During this phase, based on the recommendation
of the consultants, the GRID Corporation of Orissa Ltd. (GRIDCO)
was registered under the Indian Companies Act 1956 in April’1995
to own the T & D system in the State.
Similarly,
the Orissa Hydro Power Corporation (OHPC)
was also registered under the Indian Companies Act 1956 in
April’1995 to own all the hydro power
generating station in the State.
Orissa
Power Generation Corporation (OPGC) had earlier
been formed in 1984 to implement the Ib valley
Thermal Power Projects.
Talcher
Power Station was reverted back to NTPC and it was proposed
that all future Thermal Power Stations shall be set up only
private power companies.
The
Orissa Electricity Reforms Act was passed in November’1995
by the State Legislative Assembly, to provide necessary managerial
and financial autonomy to the power sector and other measures
provided for in the Preamble to the Act. The same was assented
by the President of India in January’1996.
It is the principal instrument of reform of the Electricity
industry in the State.
Pursuant
to the OER Act and the rules made thereunder, the Orissa State
Electricity Board (O.S.E.B) was unbundled on 1st April’1996,
into separate businesses, with T&D business carried out
by Gridco.
The
Corporatisation of the O.S.E.B was an important element of
the reform effort. As a prelude to its corporatisation, the
entire electricity Distribution & Retail Supply system
of Gridco was reorganized into 4 strategic business units
on a zonal basis, into four zones, namely Central, North Eastern,
Western and Southern zones.
On
19th November’1997, Gridco incorporatised
these Distribution zones as four wholly owned subsidiary Companies
(DISTCOs) namely, CESCO, NESCO,
SOUTHCO and WESCO for effecting
transfer of the distribution functions to these Companies.
The Distribution functions of Gridco were then transferred
to these four Companies on 26th November’1998.
The
assets and personnel were transferred to the newly created
entities such as the Gridco and OHPC with effect from 1st
April’1996 on a provisional basis and this
transfer became absolute with effect from
01.04.1997. Similarly the assets and personnel
were transferred to the 4 business zones by Gridco on 26.11.1998.
In
line with the State Government’s commitment to privatize
the entire distribution system by 1st April’1999,
Gridco divested 51% of the share in these DISTCO’s in
favour of the private sectors. Shareholding of Gridco in these
Companies was 49% out of which 10% was held by the Employees
Welfare Trust of Distcos.
REGULATORY
COMMISSION :
As
provided in the OER ACT, the OERC was set up in Aug’96
to act as an autonomous and transparent regulatory commission
to attract private investments into the state power sector.
The commission has issued two licenses “Transmission
and Bulk Supply” to Gridco and "Distribution
& Retail Supply" to the four zones namely
CESCO, NESCO, WESCO and SOUTHCO.
INSTITUTIONAL
STRENGTHENING PROJECT :
The
programme under the Institutional Strengthening Project primarily
consisted of such activities as organizational development,
Corporate Planning including financial and accounting system,
developing of commercial system including metering, billing,
collection and power purchase agreement, administration, design
and implementation of Management Information System, Human
Resource development including training and staff rationalization
and load despatch.
The
Institutional Strengthening Project (ISP) for Gridco &
OHPC was entrusted to a consortium of consultants led by M/s
Price Water House of U.K. It was sponsored by DFID of U.K.
PROJECT
MANAGEMENT UNIT :
The
PMU was set up in August’1996, for reinforcement and
rehabilitation of the Transmission & Distribution system.
Consultants from M/s Merz & Mellelan Seaboard Int, U.K
were engaged for this purpose. The working fund for the various
schemes was obtained from the World Bank (IBRD) loan.
METER
INSTALLATION PROGRAMME :
A
four year meter installation programme, based on the requirement
of meters by the Divisions and Zones was developed. The programme
involved three stages of work with work rates stepping-up
from 15 to 30 and finally 60 installations per day per Division.
The total cost of the restructuring project is estimated at
US $ 997 million. The project cost is met by the World Bank
which became effective from 24.09.96 for
an amount of US $ 350 million and co financed by the DFID
(US $ 110 million) and ADB (US $ 57 million).
After
01.04.1997, the activities of the Corporate Planning are as
under :
- Monthly
returns on various Planning aspects to Govt. of Orissa and
Govt. of India.
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Monthly returns on various Planning aspects to Central Electricity
Authority.
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Compliance to questionnaire of the State Legislative Assembly.
- Any
other works as and when required.
ACTIVITIES
OF THE LONG TERM PLANNING CELL.
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The
Long Term Planning Cell was created in February’2000,
under Corporate Planning, to carryout specific long
term planning activities (the period of three months
to ten years ahead) of Gridco. Consultant from M/s PWC
was assigned to provide constant technical support to
this cell, under Transmission Institutional Strengthening
Programme (TrISP). |
The
activities to be carried out has been laid down in the Standard
Planning Procedures (SPPs) approved by Gridco in December’2000.
Some of these are statutory in nature i.e needs to be submitted
to OERC within a prescribed time frame.
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job is presently staffed by two Engineers. |
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The
approved Standard Planning Procedures (SPP) of Gridco is indicated
below :
[Gridco’s
prepaid system study has been additionally introduced,
in the backdrop of the SPPs for System Studies and New Connection
Application. Notification No.4607 dated 05.12.2003 in respect
of the same is available in the website of Gridco.]
The works executed by the Cell, so far, are as follows
:
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Power Flow Studies for Gridco Network for the year 2005
under High Hydro and Low Hydro Peak Load Condition as
per OERC requirement.
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Power Flow Studies (with and without proposed five nos
of 132/33 kV S/S and Khurda 220 / 132 kV S/S) for the
year 2001-02 under High Hydro Peak Load Conditions.
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Power System studies for the year 2001-02 under High Hydro
Peak Load Conditions to identify the low voltage nodal
points and to work out the requirement of shunt capacitors
to improve the voltage at these points.
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Compliance to OERC queries on the transmission planning
report of January 2000.
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Compliance to AG (Audit) observations on the transmission
planning report of January 2000.
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Real
time Simulation Power Flow Studies, considering normal
operation to identify the weak links in the system as
per the grid conditions prevailing on 08.12.01 at 19 hrs
(Peak).
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Registration of data on transmission elements for conducting
system studies in Mi-power software.
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Interactions with the representative(s) of Distcos on
demand Forecast for the year 2003-07.
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Submission of Long Term Demand Forecast for the
period from 2001-02 to 2010-11 to OERC for approval.
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Collection of data from the generators, for preparing
the least cost generation expansion plan.
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Power Flow Study on the adequacy of the existing Gridco
network with Balimela HEP (75 MW each) for evacuation
of full output of Power i.e. 510 MW via Balimela-Jayanagar
5th 220 kV circuit along with the cost estimate &
feasibility study using present worth calculation.
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Power flow study for the year 2004-05 under High Hydro
& Peak Load Condition without and with the following
transmission elements on the proposed network of the said
year.
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220 kV D/C transmission line of length 110 kms from
Kalabadia to Balasore.
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220/132 kV S/s at Kalabadia.
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132 kV D/C LILO transmission line of length 25 kms
from existing Rairangpur-Baripada line to Kalabadia
substation.
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Power
evacuation Plan in the present Gridco network condition,
if Ib-Meramundali 400 kV line is to be charged in 220
kV by Dec’02 under :
(a) Normal condition
(b) Emergency condition and
(c) Future condition if any.
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Power Flow Studies on the proposed CPP of capacity (2
X 50MW) at Niranjanpur near Angul and drawl of load at
Deojhar near Joda of M/s JinDAL Strips Ltd, New Delhi.
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Introduction
of pre-paid system studies for the first time for any
existing/ new users who are connected/ proposed to be
connected to the Orissa grid network.
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Prepaid System studies on the proposed CPP of capacity
(2 X 70 MW) for the integrated steel plant (Phase-I) with
arc furnace load of M/s Bhushan Steels & Strips ltd.
at village Rengali in the district of Sambalpur.
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Prepaid System studies for Samal Barage Hydroelectric
project of (5 X 4 MW) capacity of M/s Orissa Power Consortium
Limited.
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Preparation of calender of events for all the Standard
Planning Procedures (SPPs).
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Real time simulation studies conducted considering normal
operation to identify the weak links in the system.
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Drawing
of the Gridco network (400/220/132 kV) for the existing
system and the proposed system for the year 2005 using
Mi-Power software.
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Power Flow study and preparation of Statement of Opportunity
for the year 2001-02 for submission to OERC.
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Preparation of Surplus / Deficit situation of Energy and
Demand in Orissa upto the year 2009-2010.
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Collection of outage programme from EHT(M) for the year
2001-02 and conducting the associated system studies.
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Submission of Long Term Demand Forecast for the
period from 2002-03 to 2011-12 to OERC and approval
thereof.
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Submission of Long Term Perspective Transmission
Plan for Orissa for the period from 2003-04 to 2012-13
to OERC for approval.
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All other works as and when instructed.
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