It may be pointed out that despite the large programme of development envisaged above, owing to the rapid growth in demand, power shortages are likely to continue to exist in some regions, particularly in the early years of the Third Plan. Power development has to be a continuous process, and work has to be commenced on a series of projects which will yield benefits in subsequent Plan periods. With this in view projects such as, Beas, Punasa, Idikki and others, have been included in the Third Plan.
53. The transmission network will be further strengthened and extended during the Third Plan as shown in the Table below :
Table 8 : Transmission lines
transmission lines 11 kV
and above
at the end of
circuit miles circuit kilometers
1955 36500 58400
1960-61 84000 134400
1965-66 150000 240000
FINANCIAL OUTLAYS 54. The estimated cost of the power program. me in the public sector in the Third Plan is Rs. 1039* crores. Investment in the private sector is expected to be of the order of Rs. 50 crores. The approximate break-up of the
IRRIGATION AND POWER 209
programme in the public sector is Rs. 661 crores for hydro and thermal generating schemes. Rs. 51 crores for atomic power and about Rs 327 crores for transmission and distribution schemes including Rs. 105 crores for rural electrification. This programme provides for power supply to the Bokaro steel plant and includes the outlay required for the 150 MW extension in the Neiveli power station. The provision of Rs. 24 crores for uranium mining, fabrication and plutonium extraction plant shown originally under "Power" in the Draft Outline, is now shown in the "Industry and Minerals" sector.
55. The total foreign exchange required for the power programme in the Third Plan is estimated at Rs. 320 crores. Experience in the Second Plan has underlined the fact that our dependence for electrical equipment on imports is a serious obstacle to rapid development of power. Even during the Third Plan, a large proportion of the machinery and equipment required wig, have to be imported. In addition to the completion of the first Heavy Electrical Manufacturing Plant at Bhopal and its further expansion, two other plants for manufacturing boilers, steam and hydraulic turbines and other heavy electrical equipment have been provided for in the Third Plan in the public sector. Units in the private sector will undertake further expansions in capacity for the manufacture of transformers, motors and switchgear. A substantial, portion of the requirements of equipment for power projects will thus be met from indigenous production.
56. The growth of installed capacity and energy generated is set out in the Tables below :
Table 9 : Growth of installed capacity in
million kW
1950 1955 1960-61 1965-66
(estimate) (estimate)
state-owned public 0.63 1.52 3.32 9.82
utilities
company-owned public
utilities 1.08 1.18 1.36 1.45
self-generating indus-
trial establishments 0.59 0.72 1.02 1.42
total 2.30 3.42 5.70 12.69
Table 10 : Installed capacity by type of plant
in million kW
1950 1955 1960-61 1965-66
(estimate) (estimate
hydro plant 0.56 0.94 1.93 5.10
steam plant 1.59 2.27 3.46 7.08
oil plant 0.15 0.21 0.31 0.36
nuclear plant 0.15
total 2.30 3.42 5.70 12.69
Table 11 : Growth of energy generated in
million kWh
1950 1955 1960-61 1965-66
(estimate) (estimate)
state-owned public
utiliities 2104 4573 11250 34500
company-owned public
utilities 3003 4079 5750 6503
self-generating indus-
trial establishments 1468 2185 2850 4000
total 6575 10777 19850 45000
PATTERN OF CONSUMPTION 57. Annexure X gives the pattern of consumption by different classes of consumers during the period 1951-61. The range of variation in this period as also the anticipated consumption in 1965- 66 is given in the Table below :
Table 12 : Pattern of utilisation
anticipated percent of total generation
consum-
Category ption in 1965-66 range of vari-
1965-66 ation during
(million 1951-61
kWh)
domestic or residential
light small power 3400 7.6 7.5 to 8.0
commercial light and
small power 1900 4.2 4.2 to 4.81
industrial power 28400 63.1 61.3 to 62.9
traction 1800 4.0 2.3 to 4.4
public lighting 400 0.9 0.9 to 1.0
irrigation 1900 4.2 2.4 to 4.2
public water works and 900 2.0 2.3 to 2.8
sewage pumping
transmission losses,
consumption in auxi-
liaries etc. 6300 14.0 14.4 to 16.3
total 45000 100.0
During the ten years 1951-61, except for traction and irrigation pumping, the other types of consumption do not show significant variations. As the growth of electric traction has not kept pace with the growth of power generation, consumption in this sector has shown a downward trend from 4.4 percent of generation in 1951 to 2.3 percent in 1960-61. The consumption in irrigation pumping has registered an increase from 2.7 to 4.2 percent. It is noteworthy that whereas the overall consumption has increased by about two and a half times, the use of electricity for irrigation pumping has increased more than four-fold since 1951 and progress is expected to continue to be rapid. Growth in electricity consumption in different sectors during the First and Second Plans is given in detail in Annexure XI. Indus-
210 THIRD FIVE YEAR PLAN
tries consume about 61-63 percent of the total amount of electricity generated or, to put it differently about 72 percent of power sold to consumers. This underlines the importance of coordinating power programmes with industrial programmes. With continued emphasis on heavy and basic industries in the Third Plan corresponding increase in power generation has been provided for.
RURAL ELECTRIFICATION 58. An important objective of the Third Plan is to develop efficient small-scale industries in small towns and in rural areas so as to increase employment opportunities, raise incomes and living standards and bring about a more balanced and diversified rural economy. In achieving these aims a major limiting factor is the lack of power. Where electricity is available, it becomes possible to reorganise the traditional industries and to introduce small industries based on steadily improving techniques, which are capable of meeting the new needs of the expanding rural economy. In several States, electricity is being increasingly used for irrigation pumping, and the scope for this is likely to increase rapidly. Thus, in relation to the development of the rural economy, rural electrification has a growing importance, and indeed, its value cannot be assessed only in terms of the immediate economic benefits.
59. By the end of the Second Plan, the total number of towns and villages electrified in the country is reckoned at 23,000, as against 7,400 at the end of the First Plan. The Third Plan provides for an outlay of Rs. 105 crores for rural electrification. This does not include the outlay required for providing the necessary generating capacity for meeting rural loads which is included in the provision for generation. By the end of the Third Plan the number of towns and villages electrified is likely to increase by about 20,000 to about 43,000. In determining the scope of the rural electrification programme in each State, the need for balance between increase in generating capacity and extensions in transmission, distribution and rural electrification has been kept in view. Much larger outlays and more rapid development in rural electrification are envisaged for the Fourth and Fifth Plans.
60. The following Table gives the distribution of towns and villages in terms of population range, numbers electrified during different Plan periods, and those expected to be electrified by the end of the Third Plan.
Table 13 : Towns and Villages electrified
Population range total number number elec- number elec- number elec- number elec-
according to trified by trifled by trified by trified by
1951 March, 1951 March, 1956 March, 1961 March, 1966
census (estimate) (estimate)
over 100000 73 49 73 73 73
50000 to 10000 111 88 111 111 111
20000 to 50000 401 240 366 399 401
10000 to 20000 856 260 350 756 856
5000 to 10000 3101 258 1200 1800 3101
less than 5000 556565 2792 5300 19861 38458
total 561107 3687 7400 23000 43000
It will be seen that by the end of the Third Plan all towns and villages with population exceeding 5,000 may be expected to be electrified. As regards villages with a population range of 2,000 to 5,000, it is envisaged that nearly 50 percent that is 10,000 villages will receive the benefits of electricity,
61. There are a number of isolated areas where small hydro plants of 10 to 100 kW each can be set up at modest cost. Small hydro units upto 100 kW capacity are now being manufactured in the country. In the long run , they will be more economical than diesel-alternator sets and relatively easy to maintain, and will not involve foreign exchange for their procurement or operation. A cell has been set up in the Central Water and Power Commission for initiating and assisting in field surveys and in the installation of such plants. This aspect of power development is of special importance in hill areas and suitable programmes should be formulated.
62. Rural extension of electricity become relatively uneconomic mainly because of distances separating individual villages, the low level of power consumption and the seasonal character of the requirements of power specially in agriculture. Consequently the load factor is low and the available generating capacity is not fully utilised. With a view to improving the load factor it is essential that different types of economic activities in each district requiring the use of power should be developed in a coordinated manner. This object can be secured through a carefully formulated development programme for each area covering activities in different fields of development such as minor irrigation credit
IRRIGATION AND POWER 211
and service facilities for equipment, improved seeds and village and small industries, so that rural electrification makes the maximum con- tribution possible to the increase of agricultural and industrial production. There should be forward planning for rural electrification over a period of two or more years ahead of taking up the work so that simulataneous action is initiated in other sectors also.
63. To facilitate the drawing up of definite schemes for the utilisation of power as part of the district development plan, State Electricity Boards should indicate in advance to the district agencies concerned, their estimates of the amount of power likely to be available for rural areas and small towns during the Third Plan, year by year. It has been recommended to States that, in every district where electric facilities exist or are likely to be available small committees should be set up to plan and advise on rural development programmes. These programmes should be worked out in sufficient detail and with the necessary phasing in terms of limited areas, such as a small town and its neighbourhood or a group of villages which have a common source of power and can, therefore, develop on the basis of a well-conceived economic programme. These district plans should be implemented as part of the State plan so that the development of rural electrification keeps in step with the programme for additional generating capacity.
64. Dispersal of industries in rural areas, which is discussed elsewhere in this Report, presupposes availability of power. There should be a close link between schemes for the development of village and small industries and the programme for generation and distribution of power. Similar coordination is called for in respect of minor irrigation schemes which require electricity for pumping.
65. Several aspects of rural electrification, such as those relating to the adequacy of power supply for rural loads, rates for supply and the role of Panchayat Samitis and village panchayats in distribution of electricity are being studied further.
PROBLEMS OF COORDINATED DEVELOPMENT OF POWER 66. The Electricity (Supply) Act, 1948, laid down that a sound, adequate and uniform national power policy should be developed. coordinating the activities of planning agencies in relation to the control and utilisation of national power resources. This calls for exploitation of the natural resources in the most economical manner for the benefit of the entire region regardless of State boundaries. Thus, steam power stations should be sited near collieries, washeries and oil refineries. The cheapest hydro sites in any river basin should be harnessed in an appropriate order of priority. Nuclear power stations should be located in regions where other resources of energy are inadequate or expensive.
All power stations should be inter-connected to form State, zonal or super-grids, so that the energy is pooled and used to the best advantage of the region. Interconnected operation of power stations and power systems will improve the performance of electricity supply undertakings by raising the load factor reducing the requirements of stand-by machinery and enabling the efficient operation of the available plant.
67. There has been inter-State collaboration in the past in the execution of projects such as Bhakra-Nangal, Machkund, Tungabhadra, Chambal and others. Such co-operation needs to be further extended so that power generation may be undertaken on a regional or a zonal basis and not merely to meet demands within one State. This will also pave the way for eliminating the disparities in electricity tariffs in neighbouring States. Also, in the absence of the zonal approach there is a danger of large energy resources concentrated in some States remaining unutilised, either because of the inability of the State Governments to finance the project from their own resources or because of the power demand in the State not being sufficient to call for this development immediately. Problems relating to planning and construction of generating stations, which serve more than one State, are being examined.
68. Studies are being undertaken by the Central Water and Power Commission for the establishment of super-grid in the Southern region, linking up Andhra Pradesh, Mysore, Madras and Kerala power systems. Meanwhile, the construction of 220 kV inter-State link lines designed to provide immediate facilities for interchange of power to a limited extent between the States is being taken up. During the Third Plan, power systems in Maharashtra and Gujarat will get inter-connected as also the Chambal grid of Rajasthan with the Satpura power system of Madhya Pradesh. Other inter-State links which should be considered are : the Rihand system in Uttar Pradesh with the Amarkantak-Korba system in Madhya Pradesh and the latter with the Hirakud system in Orissa, Ganga grid of Uttar Pradesh with the Delhi-Punjab system, and the Sharavathy system in Mysore with the Koyna system in Maharashtra. A special unit in the Central Water and Power Commission is being set up for undertaking studies and planning of regional super-grids in association with State Electricity Boards and other electricity supply undertakings.
FINANCIAL ASPECTS 69. In accordance with the requirements of the Electricity (Supply) Act. 1948, autonomous Electricity Boards have been set up in all the States. These Boards are charged with the general duty of promoting the coordinated development of the generation, supply and distribution of electricity within the State in the most efficient and economical manner, with
212 THIRD FIVE YEAR PLAN
particular reference to such development in areas not for the time being served by any licensee.
70. It is essential that electricity undertakings in the public sector should earn reasonable surpluses and provide resources for financing future development. On account of the capital intensive nature of power development and the rapid growth in demand, large investments will be required in the public sector.