Joint Electricity Regulatory Commission , Government of Mizoram, India

JOINT ELECTRICITY REGULATORY COMMISSION

FOR MANIPUR AND MIZORAM

AIZAWL : : : MIZORAM

D-31, M.G.Road, Upper Khatla

Aizawl,Mizoram-796001

Tel. No. : 0389-2310623

Fax: 0389-2301299

Website: www.jerc.mizoram.gov.in

Email: jerc.mm@gmail.com

NO.H.11019/17/09-JERC Dated Aizawl, the 9^th March,2010.

MINUTES OF THE 3^RD MEETING OF THE STATE ADVISORY COMMITTEE FOR THE STATE OF MIZORAM HELD ON 26^TH FEBRUARY, 2010

AT I & PR DEPARTMENT CONFERENCE HALL: AIZAWL

List of the Members present is appended:

The 3^rd Meeting of the State Advisory Committee for the State of Mizoram was held on 26^th Feb, 2010 at the Information & Public Relations Department Conference Hall: Aizawl under the Chairmanship of Mr. H. Bihari Singh, Chairperson, JERC for M & M. Besides Mr. C. Hmingthanzuala, IAS (Retd), Member, JERC for M & M and other Members of the State Advisory Committee, Er. C. L. Thangliana, Engineer-in-Chief, P&E Department also attended the meeting as a Special Invitee.

After a brief introductory speech, the Chairman, drew the attention of the Members to the Agenda Note of the meeting which was already circulated in advance for perusal and thereafter initiated the agenda-wise discussion.

Agenda 1. Confirmation of the Minutes of the 2^nd Meeting of State Advisory Committee held on 20^th Nov., 2009, at Aizawl:

After getting the nod from the Members present, the Minutes of the 2^nd Meeting was confirmed without any change.

Agenda 2. Development of Renewable Energy (RE) Resources for Generation of Power:

The Chairman briefly explained the importance of non-fossil based energy over the fossil based one and emphasized the need for development of RE Sources at a large scale keeping in view the emerging energy security challenge, the burning issues of climate change and the national target generation from RE sources. The Chairman therefore, expressed the desire to know about the preparations undertaken by the Zoram Energy Development Agency (ZEDA) to handle such voluminous work involving diversified technologies, and also informed that a minimum level of energy consumption from the RE sources by the State distribution licensees will be fixed by JERC (M&M).

However, it was found that ZEDA was not represented by any competent officer who could provide the Committee a clear picture of its responsibilities and future plans as required by the State Power Policy. Most of the Members expressed unhappiness over the absence of a senior officer conversant with the subject inspite of the fact that an important agenda of ZEDA is put before the meeting and wanted that the State Advisory Committee (SAC) be given ample opportunities to discuss in detail the various aspects of RE generations. All the members were of the view that the State is richly endowed with small hydro potential and desired that the State Nodal Agency should explore all the possibilities to tap it in full.

Er. Jolly Newman, Joint Secretary, P&E Department, Government of Mizoram informed the Committee that cost of Small Hydro Projects (SHPs) in Mizoram are very high and the financial support extended by MNRE for the implementation of Small Hydro Power Projects (SHPs) under the prevailing norms are inadequate and the State finds it difficult to earmark a substantial amount as matching fund out of the State Fund and ultimately, the projects suffer. Endorsing the views of the Joint Secretary, Er. C. L. Thangliana, Engineer-in-Chief, P&E Department also expressed the difficulties faced while convincing the Planning Commission and getting the balance fund released under Normal Plan Assistance (NPA) comprising 90% grant and 10% loan.

The Engineer-in-Chief, who had shown keen interest and done extensive work for the development of the RE Resources, also informed the Committee that in Mizoram, ZEDA has taken up only the promotional initiatives/ schemes for use of RE with the help of the beneficiaries and it has yet to do any meaningful commercial development for which participation of a Distribution Licensee (P&E Department for that matter) in the matter of metering and billing would be called for. As per the State Government Policy on Power through Non-Conventional energy sources, all RE generation including development of SHP’s having installed capacity of 25 MW & below is under the preview of ZEDA. However, SHP development is at present undertaken by the P&E Department by issuing a separate notification in this regard because of shortage of skilled manpower in ZEDA and other technical reasons – Er. C. L. Thangliana added. Members felt the need for strengthening of the ZEDA for RE generations.

Members of the SAC appreciated the initiatives, when Er. Lalduhzuala Sailo, SE (Commercial) of the P&E Department placed it before the Committee that ZEDA has taken up to install Solar Lighting Systems in most of the Government Buildings like Hospitals, Administrative Buildings, Residential Buildings, street lamps and other bunglows. The Chairman emphasized the need for introduction of system of metering and billing the consumption there also through the P&E Department and subsequent realization of revenue as usual.

Er. Vanlalruata, representative of CYMA, wanted to know about the policy & programme of the Government of Mizoram on the use of Solar Water Heaters and Solar Lighting Systems which are otherwise extensively used by the NBCC and other organizations in their buildings. From the deliberations it was transpired that ZEDA at the moment is taking up only the promotional schemes to which beneficiaries need to contribute a share.

Er. Vanlalruata has also suggested for wind power. The Engineer-in-Chief informed that P&E Department took up a few Wind Power Generations but none of them could be operated successfully because of poor wind quality and the complicacy in speed control. The Chairman stated that nowadays there are new technologies and some States have already started wind power generation in a larger scale. Members desired ZEDA to conduct a detailed study and complete wind maping of the State at an early date.

Recommendations:

1)To strengthen ZEDA to develope RE generation as per the State Policy.

2)To develope Small Hydro Project in the State.

3)To discuss the RE generation again in the 4^th SAC Meeting and inform the Director, ZEDA to make it sure that he attends the next Meeting with full details.

Agenda 3: Establishment of State Load Despatch Centre(SLDC):

With reference to the mandates of the EA 2003, the Chairman briefly narrated the unbiased functions of SLDC and the importance of setting it up as an independent establishment under the State Government. The role of SLDC shall become more significant and necessary when purchase of power from RE sources to meet the mandatory Renewable Purchase Obligation (RPO) of the State is introduced and for establishing a competitive Electricity market in the State.

Mr. C. Hmingthanzuala, Member, JERC felt that, as mandated by the Act, creation of separate posts for the officers and staff of the SLDC would be required.

Sharing the views of the Chairman and the Member, Er. C. L. Thangliana, E-in-C, P&E Department asserted that the present SLDC, even though it is not an independent establishment but attached to the Transmission Circle of the Department, has been functioning perfectly to the satisfaction of all including NERLDC, Shillong. The E-in-C was hopeful that the Ministry of Power, Government of India would provide adequate financial support for establishment of an independent full fledged SLDC for which a proposal has already been submitted from the State Government side.

Er. Jolly Newman, Joint Secretary, Government of Mizoram, stated that an independent SLDC requires a substantial amount of investment and recurring expenditures for which the State Government moved the Central Government for financial support. He, however, maintained his reservation saying that the EA has not incorporated any clause on the financial support from the centre for such establishment. Mr. N. Shyamsundar Singh, Chief (Engineering), JERC also participated in the discussion and offered views that functional independence is what is really essential for the SLDC and if it is maintained with the present arrangement it can continue to work as a State Government Office as usual till it attains self sustenance with the fees and charges being realised on the basis of energy transacted through the SLDC.

Recommendations:

1)The State Government may pursue the Central Government and also explore possibilities for mobilisation of fund from any prospective source. In the meantime, the functional independence of the SLDC may be assured early.

Agenda 4. Conservation of Energy:

The way the energy conservation helps both the utility and the consumer in terms of energy and money, was briefly highlighted to the SAC by the Chairman. Keeping aside other bigger steps like Demand Side Management, schemes for loss reduction, Dos and Don’ts for energy conservation, the Chairman stressed the need to use Compact Flourescent Lamps (CFL) which give equal or more amount of light at less consumption of power in the Government owned buildings and lighting arrangements. The Chairman further suggested to introduce CFL and establish economic and efficient use of electricity in a big way as one of the easiest way of conservation of energy

Er. Jolly Newman, Joint Secretary, P&E Department endorsed the views of the Chairman and supplemented that the use of CFL would assume great importance particularly when the questions of control over the climate change induced by Carbon emissions and global warming have come up all over the globe. He has informed that the State Government is considering to provide some fund for procurement of CFL. Use of solar energy for hot water in some categories of buildings under private ownership and of the Government of Mizoram, was also made mandatory in the year 2006, (GAD).

Mr. C. Hmingthanzuala, Member, JERC felt that the Department needs to design a mechanism with which the consumers can be shown the proven advantages and convinced so that they go themselves for new CFL at a time when they need replacement of old lamps or new installation.

Taking part in the discussion, the E-in-C pointed out that these energy conservation matters are looked after by a State Designated Agency (SDA) that works in co-ordination with the Electrical Inspectorate. Therefore, SDA could be entrusted with the responsibility to carry out more detailed economic studies of the proposal in the larger interest of the State.

On another issue raised by Er. Vanlalruata of CYMA without any factual document on “high billing by the P&E Department even when there is wide spread load shedding”, Shri N.Shyamsundar Singh, Chief (Engineering) JERC suggested that the aggrieved consumer, if any, may go the CGRF which has already been established and made functional and lodge a complaint for redressal. The Consumer Grievances Redressal Forum (CGRF) has been constituted to take care of such cases only- the Chief (Engineering) added.

Recommendations:

1)Follow up action on the mandatory use of solar energy shall be placed before the next SAC meeting.

2)The SDA shall be requested to come out with more details about the economic and efficient use of CFL and suggest pragmatic approach that ensures mass use of CFL in the State in the next meeting.

Agenda-5: Power Sector Reforms with Special Reference to Corporatisation Franchisee:

Initiating the discussion on Corporatisation of the P&E Department, the Chairman drew the attention of the Members to the two vital areas namely high rate AT&C loss and the large gap between the demand and supply that causes unabated load shedding in the State, where the department has apparently left much to be desired.

Citing examples of the States where the Corportisation has helped to a great extent, the Chairman placed before the Committee the options of Corportisation, Public-Private Partnership (PPP) and franchisee of the Power Sector that are strongly recommended by the Government of India for introduction under the above situations, for consideration and subsequent recommendations.

Endorsing the views of the Hon’ble Chairman, Mr. C. Himingthanzuala, Hon’ble Member, Joint Electricity Regulatory Commission expressed the desire to see the Report of the ASCI on the Power Sector Reform of the P&E Department and also to know the action initiated on it so far.

Admitting that Corportisation is a burning issue, Er. Jolly Newman, Joint Secretary, P&E Department prompted that a preliminary study conducted informally on the Corporatisation of the P&E Department, has revealed that an estimated amount of Rs. 600.00 crores or more including payment required for golden hand shake with several hundreds of staff would be required to provide interim support to this Corporatisation. The State Government is finding difficulties to mobilise such a huge resource within a short time and therefore Corporatisation is delayed.

However, Er. C. L. Thangliana, E-in-C, P&E Department had other views and stated that the Department has been doing quite well in managing and dealing with the power sector in the state which has a peak demand of about 70mw only. No serious complain or allegation or regret has been received from any corner nor expressed by any authority. He further stated that in Generation Schemes some of the medium scale HE projects like, Tuirial & Tuivai would be taken up under Public-Private Partnership (PPP) mode. Therefore, the proposed corporatisaton is something not called for at present - the E-in-C remarked.

The Chairperson JERC (M&M) reiterated that all the power projects are capital intensive and the State may not receive adequate fund for its development from the Central Government out of grant or subsidies. It may be difficult to check the increasing trend of AT&C losses and to supply electricity to the consumers at a cheaper rate under the existing arrangement. The State should follow the power reform process as early as possible by corporatisation of selected areas.

The Engineer-in-Chief also informed the State Advisory Committee that Rajiv Gandhi Gramin Vidyut Yojana (RGGVY) under which several rural electrification and system improvement schemes are taken up in the State, has mandated that the Schemes shall be implemented by distribution licensees and maintained through franchisees only. Power supply in those villages covered under this scheme will be franchised.

Recommendations:

1)The State Government shall endeavour Corporatisation as early as possible. Pending Corporatisation, the P&E Department shall make an all out effort to improve the efficiency of the Department and make its performance accountable by reducing AT & C loss as well as the pro-rata shedding in the State.

Agenda 6. Presentation of Electricity Department on Power Scenario of Mizoram:

The Agenda 6 of the original Agenda Note was taken up last for obvious reason.

Er. Lalduhzuala Sailo, SE (Commercial) of P&E Department made a power point presentation to the Members of the SAC on the present power scenario of the State. The presentation covered almost all the components of Power Sector namely, Generation, Transmission, Distribution, Consumers Service and Revenue Realization. Various aspects of each of the components were highlighted under the captions like in-operation, on-going and new proposals much to the delight of the Members of the SAC. A copy of the presentation is enclosed herein.

However, the Members were not convinced when they were apprised of the year wise T&D losses in the State in the increasing trend- an ambiguous statement but definitely contrary to what was heard from the P&E Department a short while ago.

The Chairman also pointed out that the present Transformation capacity as indicated in the presentation is found to be inadequate considering the demand of about 100 MW.

On another query from the Chief (Engineering), JERC, the SE (Commercial) lamented that only T&D losses, not the AT & C loss have been projected as the Department has decided to work out the same after the vigorous drive launched by the Department against the theft of power which is rampant in most parts of Mizoram nowadays, is successfully complete. The Members felt that the AT & C loss which was as high as 58.80% in 2008-2009 would be definitely more this year raising again a serious question on the accountability of the Department.

Before wrapping up the discussion, Er. Jolly Newman, Joint Secretary, P&E Department, informed the SAC that the power supply to the State of Mizoram would be adequate soon after the on going generation projects Assam & Tripura and other inter connected Transmission and Transformation projects in Assam & Meghalaya are complete in another 2 or 3 years. The Joint Secretary was hopeful that the entire scenario would get changed by then only.

Agenda 7. Review of the progress made by the Electricity Department on the earlier recommendations in respect, (1) Power Generation and Continuity of Power Supply, (2) Metering & Billing:

On the request of the E-in-C, the agenda No. 7 of the original Agenda Note was taken before the Agenda No. 6.

The Members of the SAC had a re-look into the actions initiated by the P&E Department/ the Government of Mizoram on the recommendations of the previous two meetings and wanted to know from the concerned authorities the details of progress made on it.

Asserting that the Department takes serious note of the recommendations of the State Advisory Committee and gives adequate value to it, the Engineer-in-Chief stated that proper actions have been taken in all the cases and some of them are already complete. The E-in-C further assured that all efforts would be made to complete the balance also early. The E-in-C was hopeful that a clear picture, rather an improved version of the sector, would be visible to all when the schemes taken up under APDRP, RAPDRP & RGGVY and the generation projects under State Plan are complete in the near future. He has also clarified that at present there is no transmission constraint.

The Member, JERC (M&M) pointed out that Load forecast and yearly power purchase planning as recommended in the earlier SAC meetings are not yet done. Other members also desired that P&E Department shall prepare and consider generation schedule of State power houses while forecasting power purchases.

On the query about the progress made so far on the Tuivai & Tuirial HE Projects, the E-in-C stated that the Planning Commission in consultation with MOP, GOI would be taking a firm decision on the financial closer in respect of the two projects within a short period and for that, vigorous pursuation has been continuing.

In respect of the Kolodyne HE Project which is being taken up under the Central Sector by NTPC, members of SAC wanted to know the completion target and present progress from the P&E Department. The Joint Secretary, P&E Department assured that the detailed informations, shall be collected and placed before the State Advisory Committee in the next Meeting.

Recommendations:

1)The P&E Department shall advised to prepare monthly power generation schedule of State projects and work out power purchase planning.

2)The Government of Mizoram shall be advised to monitor the progress of the Medium & Large Scale Hydro Power Projects at regular intervals.

The meeting ended at 2:00 pm with a vote of thanks to the chair.

Sd/-H.BIHARI SINGH

Chairman

State Advisory Committee

Mizoram

Memo No.H.11019/17/09-JERC : Dated Aizawl, the 9^th March, 2010.

Copy to:

1.P.S to Hon’ble Minister, P&E Department, Govt. of Mizoram for kind information to the Hon’ble Minister.

2.P.S to Secretary, P&E Department, Govt. of Mizoram for kind information to the Secretary.