| IPP Policy - Measures to be taken up to meet the Power Requirement | | | | 
| In view of the above it is necessary to gear up the activities for developing infrastructure in the power sector for increased Generation and strengthening of the Transmission and Distribution network.
- GENERATION: The state owned generating company M/S KPCL and central sector establishments M/S NTPC/ NLC have already drawn up plans for establishing new generating units to meet the power requirements in the state. With the liberalization and opening up the power sector for private sector participation through policy initiatives by the Government of India and Government of Karnataka, the IPPs have also come up with proposals for establishing new generating plants in the state, to meet the state's additional capacity requirement.
- TRANSMISSION AND DISTRIBUTION NETWORK : KPTCL presently looking after Transmission and Distribution in the state, has to develop infrastructure in T&D for evacuation of power from the generating stations, strengthen the Transmission and Distribution system to achieve the objective of providing reliable and quality power supplyto all the classes of consumers in a phased manner synchronizing with generation programs and load growth. The KPTCL has assessed that present transmission network is sufficient to handle the peak load of about 3500 MWs only. KPTCL has already prepared a 10 -year perspective Transmission plan upto the year 2009-10 with a total capital investment of about Rs. 8500 crores to meet the projected evacuation as well as system improvement requirements. KPTCL has also estimated that approximately an amount of Rs 3000 crores is required for improving the present distribution network, and an additional amount of Rs 2000 crores for distribution expansion during next ten years. Thus the total capital investment of Rs 13500 crores is required for improvement of transmission and distribution system during next ten years, to develop a sustainable T&D network to achieve the objectives of providing reliable and quality power supply and to reduce the system losses to accepted levels of less than 15%. However, the quantum of investment assessed by KPTCL being large and may impose a heavy burden in the form of interest, depreciation and other finance charges, a close review of the proposed transmission and distribution schemes taking into account the location of proposed power plants would be undertaken from time to time, to optimize the investments in the T&D system at a sustainable level.
- The additional requirement of power and energy is proposed to be met through several sources and measures. The first and the foremost measure to be taken is through reduction of losses from 26% to 14%. If the system improvement work is carried out carefully the benefit cost ratio will be quite high. It also helps avoid installation of additional capacity and thus mitigate the pollution effects. The proposed investment of Rs 13500 crores for strengthening the transmission system is not only to reduce losses, but also to handle additional loads. A detailed excercise on system improvement works has to be carried out to maximize benefit cost ratio.
- Karnataka Power Corporation (KPCL) a public sector company owned by Government of Karnataka is engaged in construction, operation and maintenance of generation stations in Karnataka.It is presently providing more than 70% of the needs of the State. It has built up expertise in the construction and operation of both hydro and thermal stations. It has recieved awards for excellence in the operation of Raichur Power Station. It has commissioned recently Raichur 5 & 6 units each of 220 MW capacity in record time. It is desirable that it is allowed to play a role in the augmentation of capacity for several years to come till power sector business is well established.
- The Government of Karnataka has embarked on the process of getting power from independent power producers as far back as in 1995, consequent to liberalization policy adopted by Government of India. As was in Vogue at that time, MOU route was adopted by Government of Karnataka and 15 projects were approved, the total capacity aggregating to 7178 MWs. Concerned with the lack of progress in the implementation of these projects, Government of Karnataka selected several short generation projects through the bid route. These included a few barge-mounted projects also. Through electricity from barge-mounted plants was costlier a conscious decision was taken in selecting them in the hope that electricity would be available in a very short time and mitigate the extant power shortage in the state.
- Government of Karnataka has also been encouraging electricity production from alternate and renewable sources of energy. These include microhydel, wind power, Biomass and cogeneration in Sugar plants.
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