Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

32
Retrospection of Retrospection of Reforms in Reforms in Distribution -A Way Distribution -A Way Forward Forward By By Lead AcC’s (NTPC) Lead AcC’s (NTPC) 12 th May, 2006

Transcript of Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Page 1: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Retrospection of Reforms Retrospection of Reforms in Distribution -A Way in Distribution -A Way

ForwardForward

ByBy

Lead AcC’s (NTPC)Lead AcC’s (NTPC)

12th May, 2006

Page 2: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Opening of sector in early nineties Opening of sector in early nineties didn’t result into much capacity didn’t result into much capacity addition in Generation by I PP’s addition in Generation by I PP’s

The same was studied by No. of The same was studied by No. of Committees Chaired by eminent Committees Chaired by eminent personspersons

The committees were of the opinion The committees were of the opinion that Reforms in distribution be initiated that Reforms in distribution be initiated to provide comfort to prospective to provide comfort to prospective developers to attract investment in the developers to attract investment in the sector sector

Page 3: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

TheThe ObjectiveObjective of Reforms :of Reforms :

Improve Commercial viabilityImprove Commercial viability through through reduction of AT&C lossesreduction of AT&C losses

Improve Customer Satisfaction through Improve Customer Satisfaction through reduced outages & interruptionsreduced outages & interruptions

Initiatives Taken for Reforms by Initiatives Taken for Reforms by Investment supportInvestment support IncentivizationIncentivization

APDPAPDP APDRPAPDRP RGVVY RGVVY

Page 4: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

MethodologyMethodology Support Utilities who agree to Support Utilities who agree to

Reforms Reforms By Signing MOU,MOA,TPA By Signing MOU,MOA,TPA

MOUMOU Complete Feeder Metering by 31Complete Feeder Metering by 31stst Dec,02 Dec,02 100% Consumer Metering100% Consumer Metering Energy auditing & AccountingEnergy auditing & Accounting Minimum Agricultural TariffMinimum Agricultural Tariff

Page 5: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

MOA-Based on Interventions inMOA-Based on Interventions in AdministrativeAdministrative

Designation of Circle in charge as CEO / BUH with Designation of Circle in charge as CEO / BUH with delegation delegation

Designation of JE as feeder managerDesignation of JE as feeder manager TechnicalTechnical

Turnkey execution with standard specificationsTurnkey execution with standard specifications IT enabling with consumer indexing and data logging IT enabling with consumer indexing and data logging

Commercial Commercial Energy Audit & Commercial Accounting with 100% Feeder Energy Audit & Commercial Accounting with 100% Feeder

MeteringMetering Franchising & Outsourcing Policy Franchising & Outsourcing Policy

( Salient Points of MOA)( Salient Points of MOA)

Other initiativesOther initiatives Appointment of AcC’s for monitoring implementationAppointment of AcC’s for monitoring implementation Capacity building exercises through NTPC, PMI and DRUM Capacity building exercises through NTPC, PMI and DRUM

ProjectProject Regular review by MOP at all levelsRegular review by MOP at all levels

Page 6: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Schemes-Sanctions-Schemes-Sanctions-InvestmentsInvestmentsSanctioned after review for each of scheme to comply with APDRP Sanctioned after review for each of scheme to comply with APDRP

objectives and scheme bundled in Cat-A & Cat-B components with objectives and scheme bundled in Cat-A & Cat-B components with agreed Key Performance Indicators agreed Key Performance Indicators ( ( Bench Mark Targets ) . The Bench Mark Targets ) . The categorization had been done in consultation with Ministry of Financecategorization had been done in consultation with Ministry of Finance

Cat-A ( Mandatory )Cat-A ( Mandatory ) Targeted to reduce commercial losses and increase reliability byTargeted to reduce commercial losses and increase reliability by

Feeder Metering – Feeder Metering – ( For measuring energy flow & Identification of losses at feeder level) ( For measuring energy flow & Identification of losses at feeder level)

Distribution Transformer Meters – Distribution Transformer Meters – ( For measuring losses in 11 KV Feeder and ( For measuring losses in 11 KV Feeder and enabling energy audit/accounting below DT level) enabling energy audit/accounting below DT level)

Sub-Station R&M Sub-Station R&M (Reliability improvement )(Reliability improvement )

Power Factor improvementPower Factor improvement (Capacitor Placement for loss reduction ) (Capacitor Placement for loss reduction )

Distribution Transformer R&M - Distribution Transformer R&M - (Reliability improvement)(Reliability improvement)

Service connection Improvement Service connection Improvement ( Prevention of tampering and fraud at( Prevention of tampering and fraud at consumer consumer level)level)

IT Enabling based on IT Road map incl. Sub Station Automation- ( IT Enabling based on IT Road map incl. Sub Station Automation- ( For bringing For bringing efficiency, transparency, and accountability in business process ) efficiency, transparency, and accountability in business process )

• Cat B (ST&D) Cat B (ST&D) Targeted to reduce technical losses and capacity augmentation byTargeted to reduce technical losses and capacity augmentation by New Sub StationsNew Sub Stations BifurcationBifurcation New LinesNew Lines ReconductoringReconductoring

Page 7: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Teething ProblemsTeething Problems Programme Implementation quite fast - Lack of Programme Implementation quite fast - Lack of

understanding by Utilitiesunderstanding by Utilities Utilities prepared schemes in conventional Utilities prepared schemes in conventional

manner lacking business like approachmanner lacking business like approach Implementation by departmental works rather Implementation by departmental works rather

Turnkey approach Turnkey approach Organizational set-up and existing systems & Organizational set-up and existing systems &

procedures not conducive for fast implementation procedures not conducive for fast implementation Non availability of initial bench-marks -Non availability of initial bench-marks -

nonexistent MISnonexistent MIS Slow dissemination of objectives and guidelines of Slow dissemination of objectives and guidelines of

schemes, its intent and purpose of scheme and to schemes, its intent and purpose of scheme and to treat the schemes as funding normal treat the schemes as funding normal development worksdevelopment works

Page 8: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Analysis of Analysis of ImplementationImplementation

Initially circle was selected for Initially circle was selected for implementation of the scheme as in smaller implementation of the scheme as in smaller area i.e., in Division /sub division electrical area i.e., in Division /sub division electrical network was not congruent to territorial network was not congruent to territorial jurisdiction of controlling officer. jurisdiction of controlling officer.

With circle as scheme area it had been With circle as scheme area it had been difficult to finalize the bench mark difficult to finalize the bench mark parameters since it includes high parameters since it includes high component of assessed energy. component of assessed energy. Subsequently focus of the program has Subsequently focus of the program has been shifted to urban areas to have been shifted to urban areas to have measurable bench mark parameters. measurable bench mark parameters.

Page 9: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Analysis of ImplementationAnalysis of Implementation Even though agreed in MOA following conditions Even though agreed in MOA following conditions

not adhered / improperly implementednot adhered / improperly implemented Reluctance of Utilities to enforce MOA conditions. This Reluctance of Utilities to enforce MOA conditions. This

is on account of resistance of middle level staff (DE/EE) is on account of resistance of middle level staff (DE/EE) Inability of utilities for creating separate Energy and Inability of utilities for creating separate Energy and

Revenue accounting system on Business unit basis Revenue accounting system on Business unit basis with distinct responsibility centre i.e., with distinct responsibility centre i.e., revenue,O&M,const, contract & Procu,Stores, Customer revenue,O&M,const, contract & Procu,Stores, Customer relations etc. relations etc.

Turnkey Execution- Even where implemented, lack of Turnkey Execution- Even where implemented, lack of Project Mgmt. and turnkey concept not followed in Project Mgmt. and turnkey concept not followed in true spirit, besides lack of enabling systems and true spirit, besides lack of enabling systems and procedures,delay in award of contracts & execution of procedures,delay in award of contracts & execution of schemes schemes

Business unitsBusiness units Empowerment of CEO of circle- Delegation Empowerment of CEO of circle- Delegation Fixing Accountability/ResponsibilityFixing Accountability/Responsibility Franchising/Outsourcing PoliciesFranchising/Outsourcing Policies

Page 10: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Analysis of ImplementationAnalysis of Implementation Frequent transfer of the officers in charge of Frequent transfer of the officers in charge of

implementationimplementation R&M of old and defective equipments. – A non R&M of old and defective equipments. – A non

starter in most of the schemes, the utilities are starter in most of the schemes, the utilities are not keen to execute this portion.not keen to execute this portion.

Delay in release of funds from State Finance Delay in release of funds from State Finance department to Utility. The Counter part fund department to Utility. The Counter part fund though available with funding agency but though available with funding agency but utilities preferred to exhaust grant component utilities preferred to exhaust grant component before drawal of counter part fund.before drawal of counter part fund.

( Delay in Fund Release)( Delay in Fund Release)

Tendency to include all expenditures under Tendency to include all expenditures under APDRP and treat APDRP as a central APDRP and treat APDRP as a central assistance funding program as most of the assistance funding program as most of the States/ Utilities have stopped/reduced funding States/ Utilities have stopped/reduced funding for normal developmental works in annual for normal developmental works in annual budgets. budgets.

(Reduced Support)(Reduced Support)

Page 11: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Delay in implementation of Cat A component of the Delay in implementation of Cat A component of the Scheme.Scheme.

Energy Audit and Accounting –lack of willingness to Energy Audit and Accounting –lack of willingness to implement except Feeder Metering –Meters provided not implement except Feeder Metering –Meters provided not being read where read data not utilized being read where read data not utilized

Distribution Transformer Metering- Progress of meter installation is Distribution Transformer Metering- Progress of meter installation is slow.slow.

Customer indexing not carried out in proper way. The energy audit Customer indexing not carried out in proper way. The energy audit has started in urban Towns of BESCOM and MSEDCL only BESCOM has started in urban Towns of BESCOM and MSEDCL only BESCOM could reduce commercial losses considerably whereas due to could reduce commercial losses considerably whereas due to improper indexing by MSEDCL results did not accrue improper indexing by MSEDCL results did not accrue

Do not want to implement integrated IT platform across different Do not want to implement integrated IT platform across different business processes Data acquisition and IT enabling. Even though IT business processes Data acquisition and IT enabling. Even though IT Task force has identified methodology and for steps for deployment Task force has identified methodology and for steps for deployment of IT as a key enabler of business process improvement and of IT as a key enabler of business process improvement and bringing transparency. There are isolated examples of IT bringing transparency. There are isolated examples of IT deployment which is not bringing desired outcomedeployment which is not bringing desired outcome

Priority execution of CAT B items- Targeted to Capacity Priority execution of CAT B items- Targeted to Capacity augmentation augmentation No administrative measure to bridge the No administrative measure to bridge the gap between ARR and ACS gap between ARR and ACS thereby demand grows due to improved thereby demand grows due to improved ST&D network , increasing ST&D network , increasing

revenue gap.revenue gap. ( Example )( Example )

Page 12: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

ObservationObservation Energy accounting was being done in Energy accounting was being done in

rudimentary form manually without any rudimentary form manually without any responsibility. Moreover there had been a responsibility. Moreover there had been a gap in data availability of four months or more gap in data availability of four months or more for accounting purposes. Energy accounting for accounting purposes. Energy accounting is not been linked to revenue collection. is not been linked to revenue collection.

Unable to implement precise reliability index Unable to implement precise reliability index to international standards in absence of to international standards in absence of proper data acquisition. Presently only proper data acquisition. Presently only manually recorded no of interruption along manually recorded no of interruption along with it’s duration is being used for reliability with it’s duration is being used for reliability calculation.calculation.

MIS is not based on reliable data. Moreover MIS is not based on reliable data. Moreover MIS is not based on exception reporting which MIS is not based on exception reporting which is feasible only through IT enabling. is feasible only through IT enabling.

Page 13: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

INITIATIVES FOR TURN-KEY EXECUTION OF INITIATIVES FOR TURN-KEY EXECUTION OF PROJECTSPROJECTS

CLEAR AND STRICT QUALIFYING REQUIREMENTS AT CLEAR AND STRICT QUALIFYING REQUIREMENTS AT THE SAME TIME ENSURING ADEQUATE COMPETITIONTHE SAME TIME ENSURING ADEQUATE COMPETITION

WELL DEFINED EVALUATION CRITERIAWELL DEFINED EVALUATION CRITERIA SCOPE CLARITYSCOPE CLARITY WELL DEFINED EQUIPMENT PERFORMANCE WELL DEFINED EQUIPMENT PERFORMANCE

PARAMETERS – ENHANCED GUARANTEE/WARRANTY PARAMETERS – ENHANCED GUARANTEE/WARRANTY PROVISIONSPROVISIONS

STRICT QUALITY AND INSPECTION NORMS PRIOR STRICT QUALITY AND INSPECTION NORMS PRIOR VENDOR APPROVALVENDOR APPROVAL

TURN-KEY CONTRACTOR MADE RESPONSIBLE FOR TURN-KEY CONTRACTOR MADE RESPONSIBLE FOR MEETING THE PROJECT PERFORMANCE BENCHMARKSMEETING THE PROJECT PERFORMANCE BENCHMARKS

PROPER PROJECT MANAGEMENTPROPER PROJECT MANAGEMENT

Page 14: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

ImprovementsImprovements

Improvements Improvements in bench mark in bench mark parameters parameters captured are captured are illustrated illustrated HereHere

(AT&C (AT&C

IMPROV..)IMPROV..)

(AT&C (AT&C Losses.. )Losses.. )

Page 15: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Suggested implementation methodology-Next Suggested implementation methodology-Next StepStep

• The amount of information required for efficient management of distribution system is not possible manually hence IT support is mandatory for the size of our units 0f Divisions/Sub Divisions.• The created IT infrastructure will be scalable to include

adjoining areas and replicable for further deployment• Analysis of loss monitoring on real time basis • The schemes to be prepared in consultation with utility

officials of the scheme area.• The existing bench mark parameters shall be validated

by the implementing agency.• Ring fencing ensured (Missing or defective meters shall

be provided) before establishing bench mark parameters.

Page 16: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Suggested implementation methodology-Suggested implementation methodology-

Next StepNext Step The responsibility of scheme execution should The responsibility of scheme execution should

be entrusted to third party in line with the be entrusted to third party in line with the principles adopted for RGGVY i.e., SPV etc.principles adopted for RGGVY i.e., SPV etc.

The IT platform ( Technology/ Vendor neutral) The IT platform ( Technology/ Vendor neutral) adopted shall be uniform for all states.adopted shall be uniform for all states.

Implementing agency to act as catalyst Implementing agency to act as catalyst necessary for implementing change necessary for implementing change management and Business Process management and Business Process Reengineering necessary for adopting the IT Reengineering necessary for adopting the IT based Business Process.based Business Process.

The out sourcing of Customer Care Center The out sourcing of Customer Care Center along with the maintenance of electrical along with the maintenance of electrical network below Primary substations (33/11 KV) network below Primary substations (33/11 KV) for increased Customer satisfaction.for increased Customer satisfaction.

To select one town from each State on pilot To select one town from each State on pilot basis in the FY 2006-07 before extending the basis in the FY 2006-07 before extending the same to all district towns and major urban same to all district towns and major urban areas areas

Page 17: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Building Integrated IT Building Integrated IT BackboneBackbone

Foundation of building IT backbone is GIS based Foundation of building IT backbone is GIS based customer indexing and asset mapping/indexing.customer indexing and asset mapping/indexing.

The basic features of GIS platform considered are The basic features of GIS platform considered are The satellite imagery map of resolution 2.5 meter GSD per pixel The satellite imagery map of resolution 2.5 meter GSD per pixel

shall be used for land base.shall be used for land base. The indexing exercise shall be carried out by DGPS survey along The indexing exercise shall be carried out by DGPS survey along

with recording of necessary attributes of consumer and assets.with recording of necessary attributes of consumer and assets. Only OGC compliant GIS software shall be used for GIS Only OGC compliant GIS software shall be used for GIS

application.application. For storing spatial data and network information only ODBC For storing spatial data and network information only ODBC

compliant RDBMS such as Oracle shall be used.compliant RDBMS such as Oracle shall be used. The GIS application shall be integrated with MBC, CRMS, The GIS application shall be integrated with MBC, CRMS,

Network analysis, Energy Audit, AMFM system and will Network analysis, Energy Audit, AMFM system and will have facilities to integrate with network management have facilities to integrate with network management applications such as SCADA/DMS in futureapplications such as SCADA/DMS in future

Page 18: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Building Integrated IT BackboneBuilding Integrated IT Backbone

The most critical function of Distribution i.e., The most critical function of Distribution i.e., Metering Billing & Collection shall be IT enabled Metering Billing & Collection shall be IT enabled and linked to GIS application byand linked to GIS application by Interconnection of billing/ collection centers through a Interconnection of billing/ collection centers through a

dedicated network in WAN formationdedicated network in WAN formation The system shall be equipped for spot billing and will be The system shall be equipped for spot billing and will be

enabling for deployment of AMR/Pre Payment metering enabling for deployment of AMR/Pre Payment metering in future with online disconnect feature for loads up to in future with online disconnect feature for loads up to 15 kw .15 kw .

This will also be enabled for Web Deployment and On This will also be enabled for Web Deployment and On line Payment facility as per requirement.line Payment facility as per requirement.

System will track all meters from deployment to System will track all meters from deployment to completion of life.completion of life.

Page 19: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Building Integrated IT BackboneBuilding Integrated IT Backbone To establish and monitor performance bench marks it is To establish and monitor performance bench marks it is

essential to record energy flow at all transformation levels essential to record energy flow at all transformation levels DT upwards DT upwards

For fool proof energy auditing/accounting and theft control For fool proof energy auditing/accounting and theft control it is essential to collect all information without human it is essential to collect all information without human intervention hence automatic data logging has been intervention hence automatic data logging has been proposed with following features.proposed with following features. Collect data, convert and store from meters irrespective Collect data, convert and store from meters irrespective

of source/make through API provided by the respective of source/make through API provided by the respective meter provider. meter provider.

Linking of all S/Stns to central database serverLinking of all S/Stns to central database server Store data at central server by use of hybrid Store data at central server by use of hybrid

(PSTN/GSM/RTU/PLC/LPR) communication medium.(PSTN/GSM/RTU/PLC/LPR) communication medium. HT consumers shall be brought under this system for HT consumers shall be brought under this system for

online monitoring of their consumption/Temper with online monitoring of their consumption/Temper with alerts.alerts.

All manned primary sub station’s will be provided with a All manned primary sub station’s will be provided with a PC for monitoring sub Station energy flows.PC for monitoring sub Station energy flows.

Page 20: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Building Integrated IT BackboneBuilding Integrated IT Backbone

For proper energy accounting and auditing For proper energy accounting and auditing following features are to be adoptedfollowing features are to be adopted Linking of Consumer billing, collection energy and Linking of Consumer billing, collection energy and

revenue data to DTs, feeders and substations revenue data to DTs, feeders and substations with help of indexed data base . This will help with help of indexed data base . This will help feeder manager to function as a business unit feeder manager to function as a business unit

GIS based indexing coupled with network analysis GIS based indexing coupled with network analysis tools to provide technical loss estimation based tools to provide technical loss estimation based on power flow in the system to identify on power flow in the system to identify commercial losses in each of network commercial losses in each of network elements/nodes.elements/nodes.

Demand Side ManagementDemand Side Management

Page 21: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Proposed IT Infrastructure Proposed IT Infrastructure

Network

33/11 KV S/S

11 KV Feeder

DT

11 KV Feeder

HT Consumer

V

C O M A

VA

VA

O F F

0 . 0 V

B u y S m a r tD r a w!- p u r c h a s e d c o p i e s p r i n t th i s d o c u m e n t w it h o u t a w a t e r m a rk.

V i s it w w w.s m a r td r a w.c o m o r c a ll 1-8 0 0-7 6 8-3 7 2 9.Y o u'll a l s o g e t fr e e h e lp a n d a m o n e y-b a c k

g u a r a n t e e.

Meter & GSM Modem

V

C O M A

VA

VA

O F F

0 . 0 V

B u y S m a r tD r a w!- p u r c h a s e d c o p ie s p r i n t th is d o c u m e n t w i th o u t a w a t e r m a r k.

V i s i t w w w.s m a r t d r a w.c o m o r c a ll 1-8 0 0-7 6 8-3 7 2 9.Y o u'll a ls o g e t fr e e h e l p a n d a m o n e y-b a c k

g u a ra n te e.

V

C O M A

VA

VA

O F F

0 . 0 V

B u y S m a r tD r a w!- p u r c h a s e d c o p i e s p r i n t th i s d o c u m e n t w it h o u t a w a t e r m a rk.

V i s it w w w.s m a r td r a w.c o m o r c a ll 1-8 0 0-7 6 8-3 7 2 9.Y o u'll a l s o g e t fr e e h e lp a n d a m o n e y-b a c k

g u a r a n t e e.

Feeder Meter & GSM /PSTNModem

GSM Service provider

CRM Server

Sub Division -- II

Collection center

data base ServerApplication Server

Data acquisition ServerGIS Server

Back up Server Plotter Spot billing machine

Mobile maintenancevan

Page 22: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Expectations from UtilityExpectations from Utility Along with the scheme Along with the scheme

implementation the followings need implementation the followings need to be carried out by utilityto be carried out by utility

1.1. Business Process Reengineering to suit Business Process Reengineering to suit electronic work flow and initiate electronic work flow and initiate necessary change Management.necessary change Management.

2.2. Creating atmosphere in the organization Creating atmosphere in the organization for adopting IT and Capacity Building of for adopting IT and Capacity Building of employees at all Level.employees at all Level.

3.3. Empowering employees to take Empowering employees to take necessary administrative measures to necessary administrative measures to reduce lossesreduce losses

Page 23: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

The IT enabled business The IT enabled business process coupled with process coupled with above measures will above measures will enable utility enable utility to create globally to create globally acceptable bench mark.acceptable bench mark.

Page 24: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

RGGVYRGGVY Implementing Infrastructure/MechanismImplementing Infrastructure/Mechanism

REC is nodal agency for implementation and responsible for REC is nodal agency for implementation and responsible for Project planning & monitoringProject planning & monitoring Sanction of Project (by Monitoring Committee)Sanction of Project (by Monitoring Committee) Funding of ProjectsFunding of Projects

REC entered into MoU withREC entered into MoU with CPSUs (NTPC,POWERGRID,NHPC and DVC)CPSUs (NTPC,POWERGRID,NHPC and DVC) State Govt.State Govt. State UtilityState Utility

For assisting REC in the execution of RE projects under For assisting REC in the execution of RE projects under three optionsthree options

Turnkey executionTurnkey execution Assistance in tendering, engineering, project monitoring Assistance in tendering, engineering, project monitoring

&quality assurance during field execution&quality assurance during field execution Project monitoring &quality assurance during execution Project monitoring &quality assurance during execution

Continue..Continue..

Page 25: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Project execution envisaged following Project execution envisaged following stagesstages

Agreement –formulation of working arrangementAgreement –formulation of working arrangement Preparation of Detailed Project Report(DPR)Preparation of Detailed Project Report(DPR) Specifications, tendering and awardSpecifications, tendering and award Detailed Engg. and site executionDetailed Engg. and site execution

Page 26: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Detailed Project ReportDetailed Project ReportDPR preparation involves the followingDPR preparation involves the following

Data collection/validationData collection/validation Technical detailing w.r.t Engg. guidelines/practicesTechnical detailing w.r.t Engg. guidelines/practices Estimation of BOQ and Cost estimateEstimation of BOQ and Cost estimate Sustainability analysisSustainability analysis

Data CollectionData Collection -To be provided by State utility-To be provided by State utility

Existing distribution system detailsExisting distribution system details Census data e.g. List of villages, population, list of BPL,APLCensus data e.g. List of villages, population, list of BPL,APL

-Constraints-Constraints No data available with some statesNo data available with some states Partial data available/inconsistency of dataPartial data available/inconsistency of data Authenticity of dataAuthenticity of data Very old dataVery old data

Continue..Continue..

Page 27: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Lessons learnt from APDRP have been utilized Lessons learnt from APDRP have been utilized to modify implementation methodology in to modify implementation methodology in RGGVY.RGGVY. The fund in the form of additional The fund in the form of additional

central assistance is given to central assistance is given to implementing agency and not to States.implementing agency and not to States.

Turnkey execution is mandatory Turnkey execution is mandatory Revenue sustainability through Revenue sustainability through

franchisee .franchisee . A single nodal agency has been fixed A single nodal agency has been fixed

for implementationfor implementation

Page 28: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Specification,Tendering Specification,Tendering &Award&Award

The practices followed by state boards are at variance with in terms ofThe practices followed by state boards are at variance with in terms of Quality standards and its enforcement Quality standards and its enforcement CPSUs practicesCPSUs practices

- Payment terms- Payment terms - Qualifying requirements- Qualifying requirements REC estimates Vs CPSUsREC estimates Vs CPSUs Market TrendsMarket Trends

-Availability of material-Availability of material-Sub –venders infrastructure/capability-Sub –venders infrastructure/capability

Availability of agencyAvailability of agency-Numbers of executing agencies-Numbers of executing agencies-Few leading to over loading of agencies-Few leading to over loading of agencies-shortage of raw material like copper/steel-shortage of raw material like copper/steel

Page 29: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Project execution involved the followingProject execution involved the following--Engg. , manufacturing & qualityEngg. , manufacturing & quality

-Delivery of equipment to site-Delivery of equipment to site- Site execution with field quality assurance- Site execution with field quality assurance

Challenges during ImplementationChallenges during Implementation

Agencies not accustomed to manufacturing quality Agencies not accustomed to manufacturing quality -Sub vendor approval-Sub vendor approval-Type test-Type test-Project Planning-Project Planning-Quality systems during manufacturing-Quality systems during manufacturing-Inspection/Dispatch of material as per schedule and sequence-Inspection/Dispatch of material as per schedule and sequence

Inadequate manufacturing CapacityInadequate manufacturing Capacity Lack of experienced /expert field personalLack of experienced /expert field personal Lack of System /ProcedureLack of System /Procedure

-Store management-Store management-Project Planning-Project Planning-Monitoring-Monitoring-Quality System-Quality System-Reporting system-Reporting system

Page 30: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

New technology New technology /Interventions/Interventions

Use of Satellite Imaginary Method for survey Use of Satellite Imaginary Method for survey workwork

Voltage regulation calculation by Advance Voltage regulation calculation by Advance Software(NEPLAN)Software(NEPLAN)

Use of Use of -ABC cable-ABC cable-Low loss Transformer(Amorphous core)-Low loss Transformer(Amorphous core)-Type tested AB switches-Type tested AB switches-PC base mimic display of S/S along with parameter-PC base mimic display of S/S along with parameter-GI lattice structure-GI lattice structure-Standardize hardware material-Standardize hardware material

Page 31: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.

Post Execution ProblemsPost Execution Problems

Planning by utilities to deal with changePlanning by utilities to deal with change Change in organisation set upChange in organisation set up Takeover by the State UtilityTakeover by the State Utility

Higher consumptionHigher consumption Additional area to be servedAdditional area to be served Additional O&M costAdditional O&M cost

Franchisee systemFranchisee system States not geared upStates not geared up No previous experience-As envisaged system not in No previous experience-As envisaged system not in

placeplace Speedy efforts from utility are requiredSpeedy efforts from utility are required

Page 32: Retrospection of Reforms in Distribution -A Way Forward By Lead AcC’s (NTPC) 12 th May, 2006.