Transmission and Distribution - Role of Indian Electrical Equipment in the XII Year Plan.

1
Transmission and Distribution - Role of Indian
Electrical Equipment in the XII Year
Plan. Presentation by Sterlite Grid Ajay
Bhardwaj COO
2
Index

• Sterlite Technologies A Vedanta Group Company.
• 2. Transmission Industry in India Growth
  Prospects.
• 3. Sterlite Technologies Presence in Private
  Transmission Sector.

3
sterlitetechnologies.com 3
4
STERLITE TECHNOLOGIES
A Vedanta Group
Company
5
sterlitetechnologies.com 5
6
sterlitetechnologies.com 6
7
Transmission Industry In India
Growth Prospects
8
Snapshot of Transmission Industry
Xth Plan registered maximum growth in terms of
capacity addition through 400 kV lines (backbone
of transmission infrastructure in India)
10th Plan 2002-07, 11th Plan 2007-12, 12th Plan
2012-17
Huge thrust on Transmission sector, expected to
increase further to USD 40 Bn in 13th Plan
Clear thrust on TD sector reflected in the
increasing plan expenditure on TD
Source CEA, Analyst Reports
9
High Growth Industry
Investment of USD 36 bn is expected in
transmission sector over FY13-17

• India has huge power deficits with peak deficits
  in range of 10.6 in FY2012
• An expenditure of around USD 247 bn has been
  planned for the Indian power sector in the 12th
  five year plan (2013-17)
• Of this, about USD 36 Bn Investments planned in
  the power transmission in 12th five year plan
• Open access and power trading will ensure need of
  greater investment
• Significant investment will come from private
  sector
• About 29 of this investment USD 10.50 Bn
  anticipated from private sector

Planned Expenditure ( FY 13 17) Cost (USD bn)
Central Sector- Power Grid Corporation (PGCIL) 20.0
State Sector- Expected to be executed by State Funding 5.5
State Sector- Expected to be executed by Private Sector 5.5
Private Sector 5.0
Sub Total Private Sector 10.5
Total 36.0
Source CEA
Source CEA, Planning Commission Working
Committee Report, Analyst Reports
Peak Deficit
1US Rs.50
10
Government Policies point to huge thrust to
transmission sector
Government program to bring down ATC loss and
revamp transmission lines with outlay of USD 10
bn in XI th plan
9 High Capacity Power Transmission Corridors at a
CAPEX of USD 12 bn
Boost due to open access and power trading
Rural electrification Program of Government with
outlay of USD 5.6 bn in XI th plan
Poised for high growth and offering huge
potential for private players
Aggressive generation targets coupled with
inadequate investments in transmission
RGGVY Rajeev Gandhi Grameen Vidutikaran Yojana
(Rural electrification program), R-APDR
Restructured Accelerated Power Development and
Reforms Programme, HCPTC- High Capacity Power
Transmission Corridors
11
Sterlite Technologies Presence in Private
Transmission Sector
12
Map Sterlites Projects
CoD by Mar 2013
CoD by Jan 2013
CoD by Mar 2014
CoD by Mar 2014
CoD by Mar 2014
CoD by Mar 2014
13
Sterlite has emerged to be one of the most
competitive and competent private sector
transmission company

• Sterlite has emerged to be one of the top private
  sector transmission companies in India. The
  company has already bagged three (3) out of eight
  (8) IPTC projects with a total value of INR 4000
  crores.
• The project entails about 2,200 km of
  transmission lines and 2 sub-stations.
• Details of projects executed by Sterlite
  Technologies
• Source CERC, Adoption of tariffs

14
Engineering Innovation
In house tower design for BDTCL JTCL project. Our towers are on an average 10 lighter than industry Benchmarks. Our BDTCL towers are user friendly for site erection, this will save one month construction period
Usage of Helicopter for detailed Line Survey Resulting in most optimum Tower Spotting and Route utilization. All key construction constraints are known up front.
Future Innovation Usage of helicopter in Tower erection and stringing in critical areas Usage of high resolution satellite imageries for Tender survey
Innovative approach in forest (statutory) clearances. It has been taken up with structured approach from day 1. As a result, expected clearance is 6 months prior to conventional time line.
Sub station foot print reduced resulting in reduced costs.
15
Value Chain in Grid Business
Simplest Business Model within all asset classes
of Infrastructure.
Acquisition
Construction Financing
Operations Refinancing
1) Opp. identification 2) Liasioning 3) PQ
determination

• Route optimisation.
• Cost estimation
• Prebid EPC tie ups
• Risk estimation
• Financial Modelling

1. Design Engineering
2. BOQ optimisation
3. Contract award
4. Financial closure
5. Regulatory work

• OM activities
• Re-financing debt

16
Create collaborative eco system among various
Stake holders

• In order to achieve faster growth,improved
  productivity more efficient usage of resources
  it is essential that a more trusting relationship
  is built created among different stake holders.
• Between Developers and Regulators.
• Between Developers and Planning bodies like CEA
  CTU.
• Between Developers and EPC Contractor
  Suppliers for
• transmission sector.

17
Create collaborative eco system among various
Stake holders

• Collaborative approach in project award and
  execution. We need to move away from the culture
  of creating defenses by buyers and sellers to a
  more cooperative model which reduces the total
  risk being assessed by buyer and supplier. NGC
  procurement model is an established example in
  this regard.
• Long term relationship instead of project based
  tendering in each instance. This will lead to
  lower cost of procurement for buyer and sellers
  will have assurance of better planning.
• 3) Sellers offering and organizing long term
  credit. Private sector developer will be looking
  for cheaper funds and lower involvement of fund
  and equity. Suppliers can help on this aspect.

18
Create collaborative eco system among various
Stake holders

• Following the telecom model we need to develop a
  model where the payment for the goods services
  is spread over a longer period involving both
  construction and operation.
• Longer the payment during opex better it
  will be for developers.
• 5) Developers and goods service providers also
  need to work closely with planners to bring more
  innovation solution on board to make the most
  optimize use of natural resources.
• As a private sector developer we want to
  see a paradigm shift in the way business is done
  so far.

19
Thank you