Broad Policy –
- The UPA Government will immediately put in place policies to enhance the country’s energy security, particularly in the area of oil.
- Overseas investments in the hydrocarbon industry will be actively encouraged.
- An integrated energy policy linked with sustainable development will be put in place
- A new coal distribution policy has been notified to meet the full requirements of the defence, railway, power and fertilizer sectors.
- Over the past four years, production has risensignificantly, profitability of Coal India subsidiaries improved and a large number of coal blocks allocated to Coal India as well as private, joint and state sector entities to ensure timely development for meeting future energy requirements
- The Eleventh Five Year Plan had initially envisaged a growth in coal production of some 9.5% against 5.6% achieved in the Tenth Plan, however it ended at 4.61 %
- While the growth in the first three years has been 7.4%, it however suffered a setback in the later part of the Plan mainly due to environmental restrictions, land acquisition and R&R issues, evacuation constraints and law and order problems in some coalfields.
- As per Annual Plan 2012-13 & XII Plan (2012-17) document of Ministry of Coal, CIL have proposed for an investment / capital outlay of Rs. 25400.00 Crores for the plan period.
- Annual Plan 2012-13 & XII plan 2012-17 document the coal production is envisaged to increase from 435.84 million tones (Provisional) in the terminal year of XI plan i.e. 2011-12 to 615 million tones in the terminal year of 12th plan i.e. 2016-17.
- Thus there may be an average increase of about 36 million per annum during 12th Five Year Plan.
- For increased transparency in coal block allocation the provisions of MMDR Act have been amended and new set of Rules have been framed for allotting new blocks through competitive bidding
- The Mines and Minerals (Development and Regulation) Amendment Act, 2010 for introduction of competitive bidding system for allocation of coal blocks for captive use, has been passed by the both Houses of Parliament and it has been notified in Gazette of India (Extraordinary) on 9th September, 2010
- In order to fast track development of some of the coal blocks in CIL, it is proposed to develop these blocks through mine developer and operator (MDO). Modalities are being worked out in this regard.
- Efforts to acquire coal equity abroad have thus far resulted in acquiring two coal blocks in Mozambique by state owned CIL while private companies have been successful in acquiring the assets in countries like Indonesia, Australia, South Africa, and South America etc
- Coal production aggregated 539.814 Million Tonnes (MT) and Lignite Production 24.19 MT in 2011-12.
- With effect from 1st January, 2012, Government has decided to switch over from
- Useful Heat Value based grading and pricing system to Gross Calorific Value based classification of non-cooking coal
- A capacity of 54,964 MW has been added in the 11th Plan which has a significant contribution from the private sector and the government is making serous efforts to achieve a much higher capacity addition of about 88,000 MW in 12th plan
- During 2011power plants with aggregate generation capacity of 20,502 MW have been commissioned. This is the highest ever capacity addition in a single year beating the previous best of 12,160 MW achieved previous year.
- A capacity addition target of 17956 MW has been fixed for 2012-13.
- Government has implemented the Rajiv Gandhi Grameen Vidyutikaran Yojana with vigour and determination to electrify over one lakh un-electrified villages and to provide free electricity connection to 2.34 crore rural BPL households
- Since inception of RGGVY, electrification work in 1,04,496 un-electrified villages have been completed and electricity connections have been released to 1.94 crore BPL households till the end of the 11th plan i.e 31st march 2012
- Bharat Nirman targets for electrification of villages and provision of electricity connections to BPL households have been met
- Since 2003, the wind sector has delivered an impressive compound annual growth rate of 29%. Last year, India was ranked in the top three countries in the world for new installed wind capacity.
- UPA has launched Restructured Accelerated Power Development and Reform Program (R-APDRP) to strengthen the Power Sector
- In 2011-12, power distribution projectsworth Rs9,595.46 crore have been sanctionedand an amount of Rs1,667.87 crore has beenreleased under the Restructured Accelerated Power Development & Reform Programme.
- As a new initiative for improving the power distribution infrastructure in the country,Government of India has approved setting up of a National Electricity Fund that would provide interest subsidy on loans disbursed to the Power Distribution Companies in the public as well as private sector
- Linked to carrying out distribution reforms, the Fund is targeted to provide interest subsidy of more than Rs8450 crore spread over 14 years for loans amounting to Rs25,000 crore for distribution schemes to be sanctioned in the next two years.(2013,2014)
- In a bold move to remove fuel supplies bottlenecks, the Government has advised the Coal India Limited to sign Fuel Supply Agreements with the thermal power plants that were either commissioned during the 11th Plan or would be getting commissioned in the first three years of the 12th Plan and that have entered into longterm Power Purchase Agreements with power Distribution Companies.
Petroleum and Natural Gas
- The UPA Government has placed great emphasis on enhancing energy security through rapid exploration of domestic oil and gas reserves, combined with acquisitions abroad.
- From 2004 to 2008 – The Government has awarded 72 explorationblocks in the last four years which has increased area under exploration by 30%.
- Domestic crude oil production was 38.085 million metric tonnes.
- In the First 8 rounds (2000 to 2010) of National Exploration Licensing Policy (NELP) , Production Sharing Contracts of 235 exploration blocks have been signed.
- Under NELP – 104 gas discoveries have been made by pvt/JV companies in 45 blocks
- The largest natural gas discovery has been made in Krishna-Godavari basin from where production has already commenced since April 2013
- As on March 2012, India’s refinery capacity stands at 213.066 MMTPA.
- Under NELP IX – 34 Blocks were offered, bids approved for 33
- The Cabinet Committee on Investment (CCI), in its meeting held on April.2013, cleared 25 NELP blocks for continued exploration of Oil and Gas, out of 31 blocks where work had been stopped on account of security restrictions imposed by the Ministry of Defence
- Such clearances will not only put to use an investment of US$ 13.42 billion (Rs 73179.26 cr) already made but also will bring in additional investment of about US$ 2.5 billion (Rs 13632 cr) in the 3-5 years in exploration activities
- Coal Bed Methane (CBM) is an environmental friendly clean gas (similar to natural gas) 33 CBM’s were signed. As of now 250 CBM reserves have been established.
- On 20th October, 2012 , The Prime Minister launched Aadhaar Enabled Service Delivery, thus enabling the beneficiaries to get LPG cylinders by using UID-Aadhaar Card
- The government has rolled out Aadhaar Enabled Service Delivery initiatives in75 districts across the country now.
- In 2011, Two new refineries came on line at Bina, M.P. and Bhatinda, Punjab.
- These Refineries would augment the availability of BS IV compliant fuels in Central and Northern Parts of the country.
- In order to ensure availability of basic petroleum products to the common man at a reasonable price, the government eliminated 5% Customs Duty on Crude Oil,
- Reduced Customs Duty on petroleum products by 5% and reduced Excise Duty on Diesel by Rs 2.60 per litre.
- On March 23, 2012, the Prime Minister dedicated GAIL’s 2200 km Dahej-Vijaipur-Dadri-Bawana-Nangal-Bhatinda cross country pipeline to the nation.
- The pipeline project with an overall investment of Rs 13,000 crores covers 8 states namely Gujarat, Madhya Pradesh, Rajasthan, Uttar Pradesh, Haryana,Delhi, Punjab and Uttarakhand.
- This pipeline will not only interconnect the existing network but also meet the demand-supply gap of natural gas in the Northern region ofthe country.
- Completed in a record 45 months,the project will spur industrial development across 40 industrial hubs.
Nuclear and Atomic Energy
- The UPA Government continued with efforts to enhance nuclear power generation in the country while ensuring the highest levels of nuclear safety.
- The success of the Government’s international civil nuclear initiative was manifest in the highest ever generation of electricity from nuclear power during the year 2011 at 32,455 million units.
- India, under UPA has signed Civil Nuclear Agreements with record number of countries – Russia France, Germany, UK, US, S. Korea, Mongolia, (Japan in Pipeline)
- In 2011, Nuclear fuel production also reached a record high.
- Total installed nuclear power generating capacity reached 4780 MW, with an additional 7 nuclear power reactors under construction, which will add 5300 MW of installed capacity.
- Following the events at Fukushima in Japan in March 2011, Government directed safety reviews of all nuclear power reactors,whether in operation or under construction
- The Nuclear Safety Regulatory Authority Bill, 2011 was introduced in Parliament. The Civil
- Liability for Nuclear Damage Act, 2010 came into force in November
- With the discovery of an additional 9620 tonnes of reserves of uranium oxide in Andhra Pradesh, Rajasthan, Meghalaya and Jharkhand, the country’s uranium resources increased to about 1,72,400 tones of uranium oxide.
- Two more uranium mines were also commissioned, taking the total number of uranium mines operating in the country to eight.
New and Renewable Energy Sources
- The UPA Government has given greater focus on renewable power during the past four years, with capacity addition during this period being substantially more than that added during the preceding 15-year period.
- India has emerged has emerged as a leader in Asia, and holds 4th rank worldwide in wind power.
- The total installed capacity of grid interactive renewable power has reached about 25,000 MW by the end of 2011-12.
- Of this, about 5,000 MW generation capacity was added during 2011-12, which is the highest ever renewable capacity addition in any one year
- The total grid-interactive generation capacity in the country of wind power now stands at 17,353 MW, solar power at 941 MW, small hydro power at 3396 MW and bio-power at 3225 MW
- In 2011-12, a total of 1056 villages were covered by PV solar lighting system, which constitutes about 11% of the total villages/hamlets covered through renewable energy for lighting purposes till now .9600 villages were covered till 2012.