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The Inspiration
India ranks sixth in the world
in terms of energy demand accounting for 3.5 percent
of world commercial energy demand in 2001. With
a gross domestic product (GDP) growth of 8 per cent
set for the Tenth Five Year Plan, the energy demand
is expected to grow at 5.2 percent. At the time
of independence, over 70 percent of the total energy
consumption of India was met by the non commercial
sources of supplies like firewood, during cake and
agricultural waste. Progressively, the situation
has reversed, with the changes in the demographic
structure brought about by rapid urbanization. Amongst
the commercial energy sources, coal, due to its
abundance, is a predominant source of energy, accounting
for 55% of the current Indian energy consumption
of about 315 MTOE in 2001. This is followed by Oil
(31%), Natural Gas (8%), Hydro (5%) and Nuclear
(1%). Primary commercial energy demand grew almost
three-fold at an annual rate of 6 per cent between
1981 and 2001, to reach 314.7 million tones of oil
equivalent. India's incremental energy demand for
the next decade is projected to be among the highest
in the world, spurred by sustained economic growth,
rise in income levels and increased availability
of goods and services.
India's commercial energy demand is expected to
grow even more rapidly than in the past as it
goes down the reform path in order to raise standards
of living. A large part of India's population
does not have access to commercial energy.
The latest estimates indicate that India has around
0.4 per cent of the world's proven reserves of
crude oil. As against this, the domestic crude
consumption is estimated at 2.8 per cent of the
world's consumption. The balance of recoverable
reserves as estimated in the beginning of 2001
is placed at 733.70 million tones (mt) of crude
and 749.65 billion cubic meters (BCM) of natural
gas. The share of hydrocarbons in the primary
commercial energy consumption of the country has
been increasing over the years and is presently
estimated at 44.9 per cent (36.0 per cent for
oil and 8.9 per cent for natural gas). The demand
for oil is likely to increase further during the
next two decades. Reforms in the energy sector
were initiated to supplement the Government's
efforts in the development of the sector and to
make it more efficient. The Government has been
endeavoring to provide a policy environment that
encourages free and fair competition in each element
of the energy value chain and attracts capital
from all sources - public and private, domestic
and foreign. Encouraging such capital formation
is crucial for India to meet its energy needs.
Significant progress has been made in establishing
independent and transparent regulatory authorities
in the power sector to facilitate the rationalization
of electricity tariff as well as to encourage
competition while protecting the interest of all
stakeholders. There is a need to examine the issue
of the single regulatory authority for the energy
sector with a view to developing the desired fuel-mix
and related issues, in close association with
sub-sector regulatory authorities.
Power is one of the prime movers of economic development.
The Government has, since Independence, been giving
priority to this sector while fixing the Plan
outlays. As a result, the installed generation
capacity has risen from a mere 1,300 megawatt
(MW) at the time of Independence to more than
1,00,000 MW today. Along with the growth in installed
generation capacity, there has also been a phenomenal
increase in the transmission and distribution
(T&D) capacity. However, despite these achievements,
the power sector has not kept pace with the growth
in demand with the result that the country has
always faced energy and peaking shortages. This
is mainly due to un-economic tariffs for agriculture,
lower slabs of domestic consumption and high T&D
losses, which often disguise large-scale theft,
and low billing and collection efficiency. This
is the main roadblock to attracting the much-needed
private investment. Power sector reforms were
initiated in 1991 to encourage competition in
each sub element of the sector, namely, generation,
transmission and distribution under an independent
and transparent regulatory regime. With this objective
in mind a Central Electricity Regulatory Commission
(CERC) has already been set up at the national
level and State Electricity Regulatory Commissions
(SERCs) set up in states.
Reforms in the energy sector were initiated to
supplement the Government's efforts in the development
of the sector and to make it more efficient. The
Government has been endeavoring to provide a policy
environment that encourages free and fair competition
in each element of the energy value chain and
attracts capital from all sources- public and
private, domestic and foreign. Encouraging such
capital formation is crucial for India to meet
its energy needs. The thrust of the reforms has
been to deregulate the price of commercial energy
resources (which, until recently, were entirely
administered), increase competition through institutional,
legislative and regulatory reforms and reduce
subsidies.
Main strategic thrust in oil & gas in the
long and medium term in the hydrocarbon sector
in India is as under:
- Focus
on oil security through intensification of
exploration efforts and achievement of 100
per cent coverage of unexplored basins in
a time bound manner to enhance domestic availability
of oil and gas.
- Secure
acreages in identified countries having high
attractiveness for ensuring long term supplies.
- Pursue
projects to meet the deficit in demand and
supply of natural gas and facilitate availing
of LNG.
- Maintain
adequate level of self-sufficiency in refining.
(90% of consumption of middle distillates).
- Establish
adequate strategic storage of crude and petroleum
products in different locations.
- Create
additional infrastructure for distribution
and marketing of oil and gas.
- Open
up the hydrocarbon markets so that there is
free and fair competition between public sector
enterprises, private companies and other international
players.
- Create
a policy framework for cleaner and greener
fuels.
- Have
a rational tariff and pricing policy, which
would ensure the consumer getting the petroleum
products at the most reasonable prices and
requisite quality eliminating adulteration.
- Announce
a long-term fiscal policy to attract required
investment in the hydrocarbon sector.
- Restructure
the oil sector PSUs with the objective of
enhancing shareholder value and disinvest
in a phased manner.
- Develop
regulatory and legislative framework for providing
oil/gas security for the country.
Some of the specific
issues being faced in Power Sector today are:
- Lack
of proper metering facilities to monitor power
exchanges restricts volume of power traded.
- It
is a fact that weak communication facilities
lead to grid collapses and long restoration
time.
- It
has been estimated that construction of additional
inter-regional links will lead to additional
utilisation of 6,500 - 6,700 k Wh.
- Data
on performance of thermal plants shows that
coal quality and availability of thermal plants
shows that coal quality and availability are
two of several factors for low PLF of plants.
- Apart
from other constraints, wide fluctuations
in high transmission voltages, system frequency
and inadequate reactive power compensation
across states may be preventing exchange of
power over and above the present levels.
- Lack
of grid discipline in the system in terms
of penalties for overdrawal and underdrawal
by state units from the scheduled transfer
scheme.
- Plants
remain unutilised because of lack of demand
whereas other regions are power starved.
- Unremunerative
tariffs by State Electricity Boards have left
most SEBs financially very weak without necessary
resources to carry out even normal maintenance
and system improvements.
- Government
must encourage private participation in operation
and maintenacne of existing plants.
- The
transmission and distribution losses in our
country are estimated at around 22 per cent.
It is estimated that improvement in system
design is a cost and time effective option
since such projects cost less than Rs. 1 crore
for every MW of new capacity saved and involved
a gestation period of less than one year.
In the
light of the above developments there is an
urgent need to set up the Centre for Energy
Management at Management Development Institute
(MDI), Gurgaon.
The Centre is established in response to the
need felt for making an in-depth research based
study of the Indian energy sector particularly
the power sector.
The Centre
The Centre for Energy Management
is set up by the Management Development Institute,
Gurgaon in collaboration with other organisations.
As part of the activities of the centre, MDI
would join hands with organisations / departments
of national and international repute for conducting
study, research, consultancy and organising
seminars and conferences in areas of energy
and power sector. All activities of the centre
will move from formulating local and national
level strategies to suggesting global solutions
to critical energy and power related issues.
The Vision
The vision of the Centre for Energy Management
is to act as a modal centre for documentation
and information dissemination activities, research
activities in the fields of energy and power.
The Mission
The mission of the Centre for Energy Management
is to develop, propagate and disseminate the
knowledge of energy and power related issues
for the growth of business and economy of India.
The objectives of the Centre
The objective of the centre would be to promote
research which will generate concepts and theory
for effective management of energy and power
systems and provide opportunities to managers
of energy and power systems for developing managerial
skills and techniques.
The objectives of the centre would be :
- to
develop a strategic direction for organisations
involved with energy and power
- to
undertake research, training and organisational
work on management of energy and power related
issues.
- to
work on organisations and government departments
concerned with promotion, development, and
distribution of power.
- to
work on organisation and government departments
concerned with promotion, development and
distribution of oil and gas.
Activities of the centre:
International / National Conferences
The centre will actively involve in bringing experts
from academia, industry and government to a common
platform by regularly organising international
and national conferences.
Research
The research will be the key focus area of the
centre. The centre will facilitate the research
activities, which would include energy and power
management. Such researches will be financially
supported by outside funding organisations as
well as MDI.
Corporate Management Development Programmes
The fruits of the research effort by the Centre
for Energy Management will be provided to organizations
through a portfolio of management development
programmes, company specific tailor-made programmes
and consortia. Senior and top management will
attend these programmes.
Consultancy
The centre will provide consultancy services to
organisations involved with energy and power related
activities.
Training Programmes
The centre will coordinate the Incompany and other
training programmes related to power and energy
sectors.
Courses
The centre will coordinate the courses for NMP
and PGP in the area of energy management. Presently
the course on 'Management of Energy and Environment'
has been introduced as a core course for the NMP.
Publications
The centre will actively engage in publishing
books, research papers, working papers and reports
in areas of energy and power.
Organisation
The centre is headed by a chairman
and managed by academic and industry experts
working in the area of energy and power. The
center is governed by an advisory board under
the Management Development Institute, Gurgaon.
Membership
The membership to the centre is open for organisations
in the private sector and public sectors, academic
and research institutions, management associations,
Consultancy as well as individuals. Benefits
of membership include:
- Free
subscriptions to newsletter and working papers
- Monographs/research
reports at reduced price
- Free
participation of one person in seminars/Conferences
- Free
access to information database on World wide
Web
- Concessional
fee on sponsored research and consultancy
projects
About Chairman of the Centre:
Dr. Atmanand is a Professor of Economics,
Chairman of Economics Area and Chairman
of Centre for Energy Management at Management
Development Institute, Gurgaon, India.
Professor Atmanand has a M. A., M. Phil.
and Ph. D degree in Economics. He has visited
a number of countries. He has visited Europe in
countries like France, Germany and Netherlands
and delivered lectures on the topic 'Economic
and Business Environment in India and European
Union and Bilateral Links with France and Germany'
in prestigious universities and institutes of
France and Germany.
Prof Atmanand has over 19 years of experience
in teaching, consultancy and training and industries.
He has worked both in India and abroad on various
assignments. He has presented a number of papers
at various national / international conferences
in India and abroad. He has ten books and more
than fifty-seven research papers/ articles published
to his credit. He is a member of Indian Society
of Labour Economics, Indian Economic Association,
Association of Development Institutes of Pacific
and Asia, Bihar State Productivity Council. He
was the Member of the State Finance Commission
Govt. of Bihar (1993-96). He has done several
research projects sponsored by the Planning Commission,
India, UNDP and the Ministry of Agriculture, Government
of India. He has worked as UNDP National Consultant
on behalf of the Ministry of Agriculture, Government
of India. He has coordinated and directed the
training programmes of senior executives of in-company
programmes of several public and private sector
companies at MDI. He has also coordinated the
Management Development Programmes on "Financing
Infrastructure Projects" at MDI. He has guided
Ph.D. level scholars. He was the founder Editor
of Paradigm, the journal of IMT, Ghaziabad, India.
He was awarded by the Institute of Management
Technology, Ghaziabad for initiating and editing
the Journal of IMT- Paradigm. He was the editor
(2000-2004) of Vision, the journal of MDI, Gurgaon,
India. His research and teaching interests are
managerial economics, Indian economic environment,
macro-economic theory, international marketing,
labour economics, international economics, financing
infrastructure projects-road, power, economics
of oil industry, public enterprise management
and privatisation, economics of education, banking
and financing institutions, panchayati raj and
local bodies, public distribution system, feasibility
study on development and public policy related
issues, insurance and disaster management, energy
management and environment, Power management.
For membership and further details please contact:
Professor Atmanand, Ph.D.
Chairman
Centre for Energy Management
MANAGEMENT DEVELOPMENT INSTITUTE
Mehrauli Road, Sukhrali, Gurgaon - 122 001 (India)
Ph.: 2346162-63, 2349831-36, 2340173, 2340153
(EPABX)
(Dialing Codes: From Delhi 91, Other Places 0124)
Fax: (91-0124-2341189; 2340147), E-mail: atmanand@mdi.ac.in
Website : www.mdi.ac.in
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