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Impressive strides made in the power sector in the last two years addition of record generation capacity moves towards one market in power reform of discoms and development of renewable energy

Budget - Dated:- 26-2-2016 - Time is ripe for industries to absorb excess generation capacity through Open Access to energize Make in India A progressive tariff structure can reduce costs for the poor without unduly burdening the rich The Economic Survey notes that sweeping changes have been made in the power sector in the last two years. 2014-15 witnessed the highest ever increase in generation capacity of 26.5 GW compared to the average annual addition of around 19 GW over the past five years. .....

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way to becoming a reality with auctions under the National Solar Mission resulting in all time low tariff of ₹ 4.34 per KWh. The Survey points out that the complexity of the tariff structure because of different tarriffs for different sectors prevents economic actors from responding sufficiently to price signals. Simplification in tariffs may improve transparency and yield consumption and collection efficiency along with governance benefits. Further, the Survey states that the debt overha .....

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t. The use of diesel generators in on the rise to protect against uneven power supply with total capacity around 72 GW and growing at the rate of 5 GW per year. High tariffs and erratic supply have led to a slow but steady decline in the growth of industrial electricity purchases from utilities and a gradual transition towards captive generation. The compund annual growth rate (CAGR) of captive power generation between 2006-07 and 2014-15 is 9.3% compared to 4.6% for electricity procured from ut .....

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