Power Generation and Alloaction to States

The details of demand and supply of power in the country during April to November, 2011 are given below:

Energy Requirement:	613,869  Million Unit
Energy Availability:	569,081  Million Unit
Energy Shortage:	44,788    Million Unit (7.3%)
Peak Demand:	127,724  Mega Watt
Peak Met:	114,233  Mega Watt
Peak Shortage:	13,491   Mega Watt  (10.6%)

During 2011-12 (upto November), the gross electricity generation from Central and State Sector Power Stations in the country was 242,676 Million Unit and 241,633 Million Unit respectively.

Power from Central Generating Stations to beneficiary States/ Union Territories is allocated in accordance with formula for allocation of power which is being treated as guidelines from April, 2000.  As per these guidelines, allocation of power is made to the States/ UTs in two parts, namely firm allocation of  85% and 15% unallocated power for allocation by the Government for meeting the urgent/ overall requirement.  The firm allocation includes allocation of 12% free power to the affected States and 1% for local area development in case of  Hydro Power Stations and  10% (not free) power to the home State in case of Thermal and Nuclear Power Stations.  The balance 72%/ 75% power is distributed amongst the States / UTs of the region in accordance with the pattern of central plan assistance and energy consumption during the previous five years, both factors having equal weightage.  Central plan assistance is determined in accordance with the Gadgil formula, in which population of the states is also taken into consideration.  In case of joint venture projects, the equity contributing state gets benefit in firm allocation in accordance with their equity contribution.

The aforementioned guidelines for allocation of power from Central Generating Stations are applicable to the generating stations for which PPAs have been signed upto 5^th January, 2011.  After 5^th January, 2011, power is to be procured by the Distribution Companies/ Utilities through tariff based competitive bidding.

In 13 new projects of NTPC, Central Government has in January, 2011 approved allocation of 50% of power to ‘Home’ State, 15% unallocated power at the disposal of Government of India and 35% to other constituents (except ‘Home’ State) of that region on the basis of extant guidelines on allocation of power giving equal weightage to central plan assistance and energy consumption by each State of the Region for preceding 5 years.  Similar dispensation has also been provided by the Government in January, 2011 in respect of new projects of Nuclear Power Corporation.  Central Government has also approved 50% allocation of power from Barethi Power Project of NTPC to Madhya Pradesh and 35% to Uttar Pradesh.