Power is a critical infrastructure for accelerated economic development. The power sector in India is today at the crossroads. Though, we have increased our installed capacity from 1362 MW to 100,000 MW since independence and electrified more than 500,000 villages, it is a matter of grave concern for us that the per capita consumption of power at 350 Kwh is amongst the lowest in the world. Nearly 80,000 villages are yet to be electrified and many of them are the most difficult and inaccessible ones. The existing quality of power supply is erratic. It adds to the cost of goods and services and constitutes a major constraint on the ability of the economy to reach its full growth potential. Electrical energy shortage in the country is nearly 10% and the peaking Shortage is nearly 15%. There are considerable regional, local and seasonal variations which lead to customer dissatisfaction and also result in the creation of an uneconomic stand-by captive generation capacity. 

The Government has set for itself a goal of provision of electricity to all by the year 20 12, which entails the addition of nearly 100,000 MW to the existing capacity and an investment of nearly Rs.50,000 crores . on generation, transmission and distribution. We have been, adding nearly 4000 MW in a year for the past few years and we need to step up this incremental capacity addition to near 10000 MW in a year besides attending to renovation & modernization and energy conservation programmes.

The organisers of the Round Table have correctly recognized that the need of the day is accessible, available and affordable power. This objective is in line with the commitments of the Government to provide affordable and adequate power in keeping with the requisite environmental norms. Fortunately, India has a high quality power planning and evaluation process, as well as a well-established environment regulation mechanism. We have now added the Electricity Regulatory Commissions which will, through their public hearings, take a holistic view on power projects and tariff.

The current global debate on climate change issues has brought before us the need to focus on development of clean power. This debate has come at a time when the developing countries have just begun to meet the demands, and aspirations of the economy and the large population, which has been denied access to the comforts and benefits of electricity. In spite of our heavy dependence on coal as a primary source, the per capita green house gas emissions in India are amongst the lowest in the world.

Government has launched a series of reforms and policy initiatives in the power sector to facilitate the growth of private investment in generation, transmission and distribution of power. Several initiatives have been taken by the Ministry of Power for fuller utilization of existing capacity, rationalization of tariff, elimination of thefts, demand side management, promotion of end use energy efficiency and generating awareness amongst the wide cross section of stake-holders like employees, consumers, industries and opinion-makers. We have also decided to electrify all villages by the year 2007. We are steadily building a broad consensus on major issues.

The Government is pursuing a multi-pronged strategy involving supply side management and prudent demand side management. However, climate change is a global issue. It is appropriate that the developed countries support and facilitate the financing of environmentally sound technologies in developing countries. New technologies which improve efficiency and reduce green house gas emissions should be easily available, accessible and affordable to countries like India. We can only progressively proliferate clean power, if it is, affordable.

India is endowed with rich coal reserves and the major requirement of electricity is met through thermal power plants. This trend will continue. India's coal reserves are nearly 192 billion tonnes. Luckily, Indian coals are low in sulphur, though the ash content is high. We have taken a proactive stance  towards the development of clean coal technologies. We will encourage super and ultra super critical technology, Fluidized Bed Combustion Boilers and Integrated Gasification Combined Cycle Plants and the use of beneficiated coal. These technologies are costly, though part of the increased cost may be covered by Higher efficiency and reducing environmental degradation. In September last year, during our PM's visit to USA, we have signed a Protocol of Agreement with the Department of Energy of the USA to develop a commercial scale Integrated Gasification Combined Cycle Plant in India.

This is just a beginning. We expect many such collaborations/agreements for development of clean technologies in India. The Clean Development Mechanism has to be utilized effectively to provide immediate and genuine support to clean energy development programmes in the developing countries. If this is not done, the imperatives of business and economics will force the continuation of business as usual technologies.

The National Thermal Power Corporation as already acquired ISO 14001 Certification for some of its power plants, and this move towards excellence in environment management is continuing. The adoption of heat rate improvement for coal in NNTP’s corporate objectives will result in the reduction of requirement of coal, thereby reducing CO emissions. Government proposes to set up a Special purpose Vehicle for development of a forest bank which will help reduce green house gas emissions. The Government has also mounted a fly ash technology mission which is actively pursuing fly ash utilisation technologies and procedures.

The Government has already expressed its commitment to development of hydro power on priority. With this object; the Hydro Policy was announced in 1998 to accelerate the setting up of hydro power projects. The Ministry has been giving progressively higher budgetary support for the development of hydro power projects in India. We hope to improve Upon the present hydro- thermal mix in favour of hydro power.

Nuclear Power is one of the most environmentally benign sources of power which lead to reduction in green house gas emissions. The Nuclear Power Programme is also being given an impetus keeping in view its increased use in developed countries like France, Korea and Japan. The performance of nuclear power plants in India is extremely good in terms of efficiency and safety.

We are one of the few countries who have a full-fledged Ministry of Non-Conventional Energy Sources. At present, over 1200 MW of wind power has been connected to the grid. We have set a target of enhancing the share of renewable energy sources. The perspective plan for 2000-2012 envisages 10,000 MW of additional power capacity from renewable energy sources. These sources deserve to be encouraged and we are also providing support to co-generation wherever possible. 

The Ministry of Power is conscious of the need for a nationwide programme for demand side management. We have been pursuing the Energy Conservation Bill in the Parliament. It should be enacted very shortly. The energy conservation legislation will give a nation-wide impetus for end-use energy efficiency and energy audit. We believe that conservation of energy is the most cost effective method of energy management. Fortunately, our extra high voltage transmission system is highly efficient. We have taken several initiatives for improving the transmission and distributions systems and enforce reduction in transmission and distribution losses. In the Conference of Chief Ministers on Power, it was resolved that 100% metering of all consumers in the country is to be ensured within a year. The metering of feeders of 11 kv and above is nearing completion. These steps will ensure effective energy audit and appropriate energy accounting practices. In the agricultural sector, programmes are being financed for installation of energy efficient pump sets and capacitors for improving the power factor.

Various recommendations have been made for efficiency in energy intensive industries like aluminum, fertilizers, iron and steel, cement, paper and chemicals. These need to be taken up seriously by industry associations and consumers. We hope that with the availability of ministerial and bilateral cooperation, we can improve energy efficiency, enforce energy labelling and soon make a perceptible dent on demand side management practices. 

The Ministry has already set up a Committee to draw up distribution plans for nearly 350 distribution circles in the country. This rationalization will be the first major step in recent years to attend to the main Source of leakage of revenue and electrical energy in the power sector. We are also in the process of developing a Management Information Service which could ensure the most efficient commercial and technical operation of electrical feeders in the country.

The enlightened gathering of experts and policy makers to deliberate upon issues which. will help the promotion of sustainable technologies and mechanisms for the promotion and development of clean power in India. It is appropriate that the CII has taken the lead ill organizing the Round Table. The recommendations of this Round Table will find quick implementation by industries, power utilities and end use consumers, so that we can attain our objective of providing accessible, available and affordable power with the least disturbance to the environment.