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Center for Energy Management

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:

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