POWER

15.1      Power is the lifeline for industrial development of any State. The creation of new Jharkhand State has thrown a challenge of development of the state and to bring it to the level of other developed states. The main intention is to improve the system so that the industries should get power of right quality, right quantity and one, which is uninterrupted with constant voltage and frequency at affordable cost. The State Government will follow the power reforms on the lines of Central Power Bill – 2001. The objective is also to simplify the procedures with respect to tariff and other aspects. It is also targeted to generate power from non-conventional sources.

15.2      The development of power sector is to be given highest priority in the state’s economic planning to bridge the gap between demand and supply. The State Government shall encourage the following:

15.2.1 PRIVATE SECTOR PARTICIPATION

The State Government shall encourage Private Sector Participation in generation and distribution of power. The distribution of power in industrial areas and major cities of the State like Ranchi, Jamshedpur and Dhanbad are being contemplated for privatisation. The private sector power plant would be able to sell power to the State Electricity Board or to supply directly to bulk consumers and units in their designated load areas. It shall also be able to sell power to any grid or export power outside the state with the concurrence of the State Electricity Board. Thus, it is intended to provide wheeling and banking of power through the transmission and distribution system of the State Electricity Board.

15.2.2 CAPTIVE POWER GENERATION

The Government would encourage private sector in setting up of Captive Power Generation Plants of any capacity to meet the existing as well as future demand for power of industrial units. For setting up such power generation unit, no permission from SEB shall be required. The surplus power generated by such plant could also be purchased by the State Electricity Board on mutually agreed terms .The State Electricity Board shall allow wheeling and banking to such power plants . Large industrial unit / consortium of industrial enterprises in growth centers / industrial areas shall be allowed to set up power generating units as well as to take over distribution of power in such industrial complexes . Such captive power generation and purchase shall be provided exemption from electricity duty for a period of ten years from the date of commercial production.

15.2.3 Entrepreneurs will be permitted to use power generating sets. The unit desirous of using power generating sets shall be required only to inform the State Electricity Board of their intention in this regard.

15.2.4 PRIORITY TO INDUSTRIAL CONNECTION

To ensure timely starting of industrial project, the State Electricity Board shall provide LT and H T industrial connection to such units within a period of 30 and 60 days respectively.

15.2.5 All incentives given to new industrial units shall also be available to the new power projects.

15.2.6 The Govt. would encourage two-tier tariff system for “peak and off peak” hour separately. To avail this facility T.O.D. meter shall have to be installed by the industrial units at their own cost.

15.2.7 The Government shall endeavor to provide exclusive dedicated feeder to industrial areas to ensure quality, uninterrupted supply of power to the industrial units located within.

15.2.8 Concept of maximum connected load will be changed to the concept of maximum Demand Load. Units desirous of availing this facility shall have to install electronic meters at their own cost.

15.2.9 Industrial units applying for a load of 100 H.P / 100 KVA or less shall be given connection under LTIS.

15.2.10 Industrial units applying for more than 100 H.P / 100 KVA shall be given connection under HTIS.

15.2.11 Exemption from payment of Minimum Guarantee Charge for new Industrial Units having connected load up to 500 KVA or equivalent H.P, as per billing norms.

15.2.12 For the period the Board is unable to supply power or the consumers unable to take supply due to certain reasons beyond their control such as natural calamity, accidental fire, labour unrest, major industrial accident etc., proportionate relief will be given in fixed charges and Minimum Guarantee charges.

15.2.13 SEB will accept NSC / Fixed Deposits against security money.

15.2.14 Amount of Security Deposit / Advance shall be fixed on the basis, on which Minimum Guarantee Charge is calculated and not on the basis of average consumption.

15.2.15 The rate of delayed payment surcharge shall be recoverable from the defaulting units at ½ % (half) interest per week basis and not on monthly basis.

15.2.16 Notice period for disconnection or reduction of power load by HT consumers shall be six months.

15.2.17 For H.T. consumers, if the consumption exceeds the contracted demand up to 15% in a particular month, minimum guarantee charges, fixed charges, etc. shall be charged extra for that particular month only. On the other hand if consumption exceeds the contracted demand beyond 15%, minimum guarantee charges, fixed charges etc. shall be charged extra for a period of only 6 months instead of present 12 months.

15.3      POWER TARIFF
An independent Electricity Regulatory Commission shall be established by the Government to rationalise the power tariff and ensure timely disposal of electricity related disputes between the industrial consumers and the Board.

15.4     INSTALLED CAPACITY OF POWER IN JHARKHAND

           There is immense prospect of capacity addition in both the thermal and hydel sectors. The Government shall take steps to enhance the capacity of existing power plants.

15.5      POWER POTENTIAL IN JHARKHAND
There is immense potential for setting up of Thermal, Hydel, Geothermal, Atomic, Methane and Gas based new power plants in Jharkhand. The prospects of capacity addition in various power stations is as follows:

15.6      Besides, a number of mini and micro hydel power plants can also be installed at various identified localities, each of which may provide 1 MW power to 10 MW to the adjacent localities. The Government shall accord “Industry Status” to such mini / micro power generating units which would be allowed to wheel energy.

15.7      Private sector would also be encouraged to exploit and develop non-conventional sources of power, such as geothermal energy, biomass based power, solar power, wind power etc. to generate power locally and provide it in the remote areas. The Government shall accord “Industrial Status” to such non-conventional sources of power generating units, which also would be allowed to wheel energy.

15.8     RURAL ELECTRIFICATION

The State Government has undertaken massive rural electrification programme to provide electricity to all villages and rural areas. The investment being made for this purpose is Rs. 30 crores in the current year 2001-2002.