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Indian suppliers are globally competitive — in price and quality

Venugopal Pillai ,  Friday, May 25, 2012, 17:11 Hrs  [IST]

S.K.Agarwal— S.K. Agarwal, CMD, Rajasthan Rajya Vidyut Prasaran Nigam Ltd

Rajasthan Rajya Vidyut Prasaran Nigam Ltd, the state transmission utility of Rajasthan, is amongst the leading STUs in the country. RVPN also takes the lead in inculcating the PPP culture in its infrastructure development with five projects in the making. S.K. Agarwal speaks on a wide range of subjects relating to RVPN and also on the subject of the intra-state power transmission. While outlining the general capex plans and goals of RVPN, Agarwal also notes how the state utility is gearing up to meet the power evacuation demands of increasing renewable energy capacity coming up in the northern state. An interview by Venugopal Pillai.

What is RVPN's investment plan for FY13 and how will it be financed. How does it compare with FY12?
In FY12, RVPN's capital expenditure was Rs.2,014.94 crore as against the target of Rs.2,000 crore. In FY13, we propose to invest Rs.2,800 crore that would be financed through state government equity of Rs.560 crore, and bonds worth Rs.450 crore. Rural Electrification Corporation would be lending Rs.1,200 crore followed by LIC with Rs.250 crore. Power Finance Corporation, commercial banks and other sources will account for the remaining Rs.340 crore.

Tell us particular about RVPN's plans of augmentation EHV infrastructure like 400 kV lines. We also learn that Rajasthan is taking the lead in establishing 765 kV lines. Could you please elaborate?
Yes, in the past three years, five grid substations (GSS) of 400kV with 1,890 MVA capacity and 1,547 ckm of 400kV lines have been commissioned.

As you are aware, supercritical power plants at Chhabbra (2x660-mw), Kalisindh (2x660-mw) and Kawai (2x660-mw) have been planned/approved for construction in the Kota region of south Rajasthan. Towards this, RVPN has planned to set up 3x1500 MVA, 400/765kV pooling substations at Anta (Baran district) and 2x1,500 MVA, 765kV GSS at Phagi (Jaipur) with two 765 kV S/C lines between Anta and Phagi for transfer of 3,960 mw power from the three generating stations to north/northeastern part of the state around Jaipur.

The 765kV GSS at Phagi shall be further connected to regional grid through 765kV lines to Gwalior in Western Grid and Bhiwani in Northern Grid. Work of 765kV lines and substations are in progress. The 765kV lines are likely to be completed in this financial year and will be initially charged on 400kV. Whole system shall be commissioned on 765kV level by early FY15.

Apart from above, seven 400kV GSS in the state sector and four through PPP, along with associated/inter-connecting lines, have also been planned for strengthening of the system and evacuation of power from upcoming generating stations in the state during the XII Plan period.

Untitled Document
RVPN: PHYSICAL PERFORMANCE
Parameter Unit
FY12
FY13
(Actual)
(Target)
400kV lines ckm 244.812 200.000
220kV lines ckm 481.167 700.000
132kV lines ckm 456.060 132.000
220kV GSS nos 6 8
220kV GSS MVA 660 920
132kV GSS nos 22 20
132kV GSS MVA 650 550

RVPN, as we perceive, has been highly successful in bringing in the Public Private Partnership (PPP) culture in building transmission lines. We understand that out of the five projects planned, three have been awarded. When are you likely to award the remaining two?
RfQ part of 400kV D/C Babai-Jaipur (North) (Twin Moose) line with 400kV substation at Jaipur (North) under PPP-4 project has been opened and is under evaluation. Successful bidder is likely to be selected by June 2012.

Response to PPP-5 project of 400kV D/C Jodhpur (New) - Udaipur (Twin Moose) line with 400kV substation at Udaipur has been encouraging. Bid opening is scheduled on May 28, 2012. Successful bidder is likely to be selected by October 2012.

Tell us in general about the growing role of private sector in RVPN's capacity augmentation plan.
Renewable power plants (solar and wind power projects) in Jaisalmer, Barmer, Jodhpur and Bikaner districts of about 4,240 mw capacity are likely to be commissioned in next 2-3 years. RVPN had planned construction of three 400kV, nine 220kV and 23 units of 132kV GSS for evacuation/transfer of generated power to load centers in the state as well as to neighbouring states. Construction of some of these GSS is proposed through private sector.

How many PPP-based transmission projects are likely to be taken up in FY13?
Works on three projects, which have already been awarded to successful bidders, are likely to commence in FY13.

Chinese equipment suppliers are making big inroads in the Indian power market. What has been the experience at RVPN? Do you have any particular policies to control the entry of Chinese equipment?
Material and equipment that is not manufactured indigenously has to be imported. This may include equipment from Chinese manufacturers. It has been observed that Indian manufacturers and suppliers are able to compete with outside (international) equipment suppliers both in terms of quality and price. For the 765kV projects, 765/400kV transformers, which form the main equipment, shall be supplied by Indian manufacturers.

It is widely felt that state power utilities are bound by the L1 criteria during procurement and this allegedly creates room for substandard equipment. What is your view?
But by setting qualifying criteria properly, supply of substandard equipment can be avoided.

Please discuss in brief the role of RVPN as the SLDC.
Apart from duties of STU, RVPN is the operator of SLDC in Rajasthan. We have ring-fenced the job of SLDC operation from other jobs of RVPN. There is a separate Director on RVPN's Board, who looks after the day-to-day working of SLDC. SLDC's accounts are separate and we are filing ARR and Tariff petition with SLDC part as separate, as per the directions of RERC. SLDC is doing its job of grid operation and energy accounting efficiently and there in no interference of STU in this regard.

What have been the trends in transmission (technical) losses of RVPN. What is your target for FY-13?
For FY12, the transmission losses are provisionally placed at 4.83 per cent. They are higher than 4.27 per cent in FY11 due to high wind power generation from projects that are far away from load centres. For FY13, the targeted technical losses are 4.2 per cent. As such, transmission losses have shown a declining trend from 4.61 per cent in FY08 to 4.57 per cent in FY09 to 4.43 per cent in FY10.

Please discuss in brief recent trends in the capacity contracted by RVPN under the state government's Open Access policy for renewable energy projects.
Rajasthan has enormous potential for renewable power generation in the western part of the state. The current installed capacity of NES plants is 2,357 mw, most of which is sold to discoms on preferential tariff. A part of this capacity, around 86 mw, is being wheeled as captive energy by wind power generators using intra state open access on RVPN's grid. A wind power plant of 12 mw by Gujarat Fluorochemicals Ltd is also utilizing open access to transfer power generated in western part of the state to outside the state. Dahanu Solar Power Ltd, a Reliance group company, has set up a solar power project in Jaisalmer district and sought interstate open access for transfer of 33 mw of power to Maharashtra using RVPN's grid. Solar projects being developed on the guidelines of NTPC Vidyut Vyapar Nigam Ltd in Rajasthan shall also avail open access on state grid.

Please tell us about the key objectives that you would like to see RVPN attaining in the XII plan period.
The key objectives would be: 
  • Investment of Rs.12,600 crore for strengthening and expansion of transmission system in the state for evacuation and transmission of quality power within the state 
  • Harnessing huge potential of renewable sources, mainly wind and solar 
  • Reducing transmission losses to less than 4 per cent 
  • Maintaining and further improving transmission system availability at 99 per cent or above
 
                 
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