In compliance with section 3 of the Electricity Act 2003, the Central Government hereby notifies the National Electricity Policy. Periodically Central Government (MoP) prepares National Electricity Policy in consultation with the State Governments and Central Electricity Authority (CEA). And in sync with the same CEA charts National Electricity Plan.

The government recognises Electricity, an essential requirement for all the aspects of our life, and hence being recognised as a basic human need. Electricity infrastructure plays a prominent role in the socio-economic development of the nation. Critically Government emphasize on ensuring not only supply of electricity but equally its tariff, quality and reliability; i.e. Tariff for electricity are to be determined very judiciously; infrastructure must ensure reliability of supply of electricity; and supplied electricity must follow quality criteria (such as minimal voltage fluctuations, minimal harmonics and phase unbalance – both Voltage and Current). For an economy to the delivery sustainable growth trajectory, availability of quality power supply is of utmost importance.

Still, Power Sector lakes sufficient infrastructure ensuring sustained power supply of proper quality. This causes an imbalance in investment on power projects and recovery of the project cost. On one side we have states where household, as well as Industries, do not get more than 8 Hrs of a daily power supply, and on the other side, we have states where huge power generation capacity is unutilized.

Ministry of Power charted National Electricity Policy with below objectives:

  • Access to Electricity – Available for all households in next five years
  • Availability of Power – Demand to be fully met by 2012. Energy and peaking shortages to be overcome and adequate spinning reserve to be available.
  • Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates.
  • Per capita availability of electricity to be increased to over 1000 units by 2012.
  • Minimum lifeline consumption of 1 unit/household/day as a merit good by the year 2012.
  • Financial Turnaround and Commercial Viability of Electricity Sector.
  • Protection of consumers’ interests.

With above objectives, MoP intends to address below issues:

  • Rural Electrification
  • Generation
    • Hydro Generation
    • Thermal Generation
    • Nuclear Generation
    • Non-Conventional Energy Sources
    • Renovation & Modernization (R&M)
    • Captive Generation
  • Transmission
  • Distribution
  • Recovery of Cost of services & Targeted Subsidies
  • Technology Development and Research and Development (R&D)
  • Competition aimed at Consumer Benefits
  • Financing Power Sector Programmes Including Private Sector Participation
  • Energy Conservation
  • Environmental Issues
  • Training and Human Resource Development
  • Co-generation and Non-Conventional Energy Sources
  • Protection of Consumer interests and Quality Standards

The National Electricity Plan is for a short-term framework of five years while giving a 15-year perspective and would include:

  • Short-term and long-term demand forecast for different regions;
  • Capacity additions in generation and transmission keeping in view the economics of
    • generation and transmission,
    • losses in the system,
    • load centre requirements,
    • grid stability,
    • security of supply,
    •  quality of power including voltage profile etc. and
    • environmental considerations including rehabilitation and resettlement;
  • Integration of such possible locations with transmission system and development of national grid including type of transmission systems and requirement of redundancies; and
  • Different technologies available for efficient generation, transmission and distribution.
  • Fuel choices based on the economy, energy security and environmental considerations.

One can access all such details of five year plans, published by GoI, here. Energy/Power related aspects of plan are covered under “Economic Sectors”. It’s worthwhile to introspect 12th five year plan (Economy Sector) and areas of Power Sector Development.


Each of above objectives/issues/perspectives can be deliberated further in detail. Our subsequent posts shall cover all such aspects directly or indirectly.