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Cover Story | August 2014

Power 20:20 | Madhya Pradesh

State which has best implemented power reforms : Madhya Pradesh

After a series of reforms, tariff hikes, involvement of private firms in supplying electricity to some cities and customer-friendly initiatives, Madhya Pradesh now enjoys 24-hour power supply. Madhya Pradesh has begun with identifying the problem areas, including assessing the actual demand for electricity in the State.

Key Success Factors

  • Ground reality: Latest data available with the Central Electricity Authority shows that the State does not have power deficit. Distribution losses, which have crippled many State utilities, have fallen from 37 per cent to 27 per cent, narrowing the gap between revenue and cost to 60 paise per unit from Rs 1. The gap is expected to fall to 43 paise this fiscal. Losses in the transmission segment are at 3.5 per cent, which is one of the lowest in the country.
  • 24x7 power: MP has been able to achieve its ambitious goal of providing 24 hours of power supply to all domestic rural consumers and 8 to 10 hours of quality power supply to agricultural consumers. This is a significant milestone in the history of Madhya Pradesh considering that two years back, rural areas were getting a supply of 10-12 hours. This was achieved under Atal Jyoti Abhiyaan from January 2013.
  • Human resources: To boost the system, the State has hired and trained 5,000 young professionals, including 1,500 engineers over the past three years. It also framed new service rules to ensure a performance-driven culture.
  • Investment: Madhya Pradesh invested about Rs 9,700 crore in expanding and upgrading the electricity distribution network by piggybacking on the Centre's flagship schemes. It also laid separate electricity feeder lines to rural houses. These steps helped it to increase the consumer base to 110 lakh in 2013 from 65 lakh in 2004. The State pushed for electricity generation improvement, leading to a 126 per cent increase in availability of long-term contracted power. At present, about 5,000 MW of new capacity is under development with which Madhya Pradesh will be power surplus by 2018 and its power procurement costs will be among the cheapest.
  • Present perfect: Presently, Madhya Pradesh Power Generating Company has 3,724.7 MW of power generating capacity comprising 2,807.50 MW of thermal and 917.20 MW of hydel power. The State also has capacity of 2,372 MW from Narmada Valley Projects. The State has also got a share in Central power generating stations to supplement its own power generation capacity. It serves over 96 lakh consumers including about 13.97 lakh agricultural consumers.
  • 3,960 MW super-critical technology based pithead coal-fired power generation plant in district Singroli.
  • Sasan power to supply power at a historic low level tariff of Rs. 1.196/KWh to 7 States Madhya Pradesh, Punjab, Haryana, Uttar Pradesh, New Delhi, Rajasthan and Uttarakhand.
  • Madhya Pradesh has invested around Rs 9,700 crore in expanding and upgrading the electricity distribution network.
Parameter Details
State Madhya Pradesh
Capital Bhopal
Population 72 mn
( 6% of population)
GDP $52.2 bn
Utilities MPPGCL ( Generation)

Fact File
Installed Capacity - Thermal 2,807.50 MW
Installed Capacity - Hydel 917.2 MW
Installed Capacity - Total 3,724.7 MW
EHT Lines 27,119 Ckt. km.
HT Lines 22,0455 km.
LT Lines 342,388 km.
Transmission Capacity 8,841 MW
HT/LT Ratio 0.65
No. of Consumers 96.32 lakh
No. of Agricultural Consumers 13.97 lakh
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