Energy in India

2019 ias preliminary exam test series
  • Power development in India commenced at the end of the 19th century with the commissioning of electricity supply in Darjeeling during 1897, followed by the commissioning of a hydropower station at Sivasamudram in Karnataka during 1902.
  • In the pre-Independence era, the power supply was mainly in the private sector that too restricted to the urban areas.
  • With the formation of State Electricity Boards during Five-Year Plans, a significant step was taken in bringing about a systematic growth of power supply industry all over the country.
  • A number of multi-purpose projects came into being, and with the setting up of thermal, hydro and nuclear power stations, power generation started increasing significantly.
  • The Ministry of Power is primarily responsible for the development of electrical energy in the country.
  • In all technical matters, the Ministry of Power is assisted by the Central Electricity Authority (CEA).
  • The construction and operation of generation and transmission projects in the Central sector are entrusted to Central Sector Power Corporations, viz.,
  • National Thermal Power Corporation (NTPC),
  • National Hydroelectric Power Corporation (NHPC),
  • North-Eastern Electric Power Corporation (NEEPCO),
  • Power Grid Corporation of India Limited (PGCIL).
  • The Power Grid is responsible for all the existing and future transmission projects in the Central Sector and also for the formation of the National Power Grid.
  • Two joint-venture power corporations, namely, Satluj Jal Vidyut Nigam (SJVN) (formerly known as NIPC) and Tehri Hydro Development Corporation (THDC) are responsible for the execution of the Nathpa Jhakri Power Project in Himachal Pradesh and projects of Tehri Hydro Power Complex in Uttarakhand respectively.
  • Three statutory bodies, ie, the Damodar Valley Corporation (DVC), the Bhakra-Beas Management Board (BBMB) and Bureau of Energy Efficiency (BEE) are also under the administrative control of the Ministry of Power.
  • Programmes of rural electrification are provided financial assistance by the Rural Electrification Corporation (REC).
  • The Power Finance Corporation (PFC) provides term-finance to projects in the power sector.
  • A Power Trading Corporation has also been incorporated primarily to support the Mega Power Projects in private sector by acting as a single entity to enter into Power Purchase Agreements (PPAs).

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