Q. Gujarat leads as a power surplus State in the country and has set an example for implementing best practices in last few years. What role has Gujarat Urja Vikas Nigam Ltd. (GUVNL) played in achieving the great success and how did the rapid transformation came about?
A. At the time of unbundling of erstwhile GEB in 2005, State was facing an acute power shortage scenario coupled with high distribution losses & operating losses. Post restructuring, actions were initiated on war-footing basis for generation capacity augmentation to ensure adequate power supply to all. Taking cognizance of the fact that power purchase cost is a major cost driver in the value chain, GUVNL (Holding Co.) through advance planning has tied up power on long term basis at competitive rates which has enabled State Utilities to keep its cost under control. I would like to highlight that the State has added more than 17000 MW capacity in last 12 years:
- State Owned Projects – 3741 MW
- Private Sector Projects – 6162 MW
- Share from Central Sector Stations – 2323 MW
- Renewable – 5197 MW
Today, Gujarat stands tall as a Power surplus State with conventional capacity of 19791 MW as against peak demand level of 15142 MW. Besides, 5383 MW of Renewable Capacity is also operational in the State.
State Utilities have implemented measures for improving efficiency, maximizing revenues, minimizing costs and meeting the needs of consumers. Distribution Utilities have been paying focused attention on loss reduction by administrative measures, curbing theft & pilferage of electricity. Resultantly, distribution losses which were more than 30% in 2003 have been brought down below 15% at present.
GUVNL being holding company has played an effective role of Supervision, Co-ordination and facilitation of activities of its Subsidiary Companies and thereby paved way towards progress of state’s power sector.
Through operational independence and performance monitoring, State has made available a robust power infrastructure i.e. adequate generation availability, transmission & distribution infrastructure and consumer friendly initiatives which has played a pivotal role in growth of Gujarat’s economy in last decade.
Q. While Gujarat State Electricity Corporation Ltd. (GSECL) is the only company for generation of electricity while the others are involved in distribution and transmission. Don’t you think more companies should be involved in power generation?
A. GSECL is a wholly owned Subsidiary Generating company of GUVNL with installed conventional capacity of 6132 MW. GSECL is not the only company for generation of electricity. In addition to GSECL, there are other power plants owned / controlled by Govt. of Gujarat like Gujarat State Energy Generation (507 MW), Gujarat Industries Power Company Ltd. (810 MW), GSPC Pipavav Power Company (702 MW), Gujarat Mineral Development Corporation (250 MW), Bhavnagar Energy Company Ltd. (500 MW) which are operational and supplying power to GUVNL & its Distribution Companies.
Moreover, State is already procuring power from various Private Generators like Adani, Essar, Tata Power etc. and Central Sector Generating stations like NTPC, NPCIL etc. on long term basis.
Q. What plans has GUVNL to export the surplus power to the power deficient States?
A. State is purchasing power from various generation sources based on Merit order dispatch principles as per which entire cheaper generation is first utilized to meet the power demand of the State. State would explore the avenues for disposing the surplus power to other deficient States/ Utilities in the instances when market realization is higher than marginal cost of generation for the State.
Q. How is GUVNL taking forward the “Jyotigram Yojana” initiated by the Prime Minister? How has the Yojana helped in development of rural areas in the State?
A. Gujarat has implemented Jyoti Gram Yojana, a feeder bifurcation scheme ensuring supply of 24 hours 3 phase supply to rural Villages and continuous 3 phase power supply atleast for 8 hours daily on rotation basis through dedicated Agriculture feeders.
Through JGY, consumers have been benefited due to increase in economic activity by support to Cottage Industries, Small Scale Industries etc. in rural areas, employment creation and socio-economic upliftment through continuous quality power supply while Utilities have been benefited in form of flexible load management and better quality of supply.
It is a matter of immense pride that the pivotal scheme of Gujarat has been replicated at national level by Govt. of India in form of Deendayal Upadhyaya Gram Jyoti Yojana.
Q. Austrian explore Oilex has made a formal offer to acquire the remaining 55% equity stake in Cambay oil field in India from Gujarat State Petroleum Corporation. How do you see this offer for investment as opportunity of quantum growth for the GSPC and the State at large?
A. The detail pertains to GSPC.