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Government of India Ministry of Power

-    Shrarri Shakti Bh van, Rafi Marg, New Delhi Dated December  2014

                OFFICE  MEMORANDUM

Subject: "Integrated Power Development Scheme" (IPDS)

Sanction of the President of India is conveyed for launch / implementation of "Integrated Power Development Scheme" (IPDS) with the following components:

(i)              Strengthening of sub-transmission and distribution networks in the urban areas;

(ii)             Metering of distribution transformers / feeders / consumers in the urban areas.

(iii)            IT enablement of distribution sector and  strengthening  of  distribution network, as per CCEA approval dated 21.06.201-3 for completion of the targets laid down under R-APDRP for 12th and 13th Plans by  carrying forward the approved outlay  for R-APDRP  to IPDS.

1. The components at (i) and (ii) above will have an estimated outlay of Rs 32,612 crore including a budgetary support of Rs 25,354 crore from Government of India during the entire implementation period. Details are given in Annexure-1.

1. The scheme of R-APDRP as approved by CCEA for continuation in 12th and 13th Plans will get subsumed in this scheme as a separate component relating to IT enablement of distribution sector and strengthening of distribution network  [component (iii) above] for which CCEA has already approved the scheme cost of Rs 44,011 crore including a budgetary support of Rs 22,727 crore. This outlay will be carried forward to the new scheme of IPDS in addition to the outlay indicated in para 2 above.

1. Scope of works: The scheme will cover works relating to strengthening of sub­ transmission & distribution system, including provisioning of solar panels·, metering of distribution transformers / feeders / consumers in the urban areas, and IT enablement of distribution sector. The details of scope of works covered under the scheme are given at Annexure-11.

1. Eligible Utilities: All Discoms including private sector Discoms and State Power Departments will be eligible for financial assistance under the. scheme. In case of private sector Discerns where the distribution of power supply in the urban areas is _with them, the projects under the scheme will be implemented through a State Government Agency and the assets to be created under the scheme will be owned by the State Government I State owned companies. These assets will be handed over to the concerned Discom for their use during the license period on mutually agreed terms & conditions. The responsibility of operation and maintenance of these assets would be of the Discom concerned.

1. Formulation of DPR and Project Appraisal Mechanism: The Discoms will assess the need for strengthening the urban distribution networks and will formulate bankable  Detailed  Project  Reports  (DPRs)  for  coverage  under  the  scheme. The DPRs will be recommended by the existing  Distribution  Reforms  Committee  (DRC)  at  the State level under the Chairmanship of the Chief Secretary/Principal Secretary/Secretary Power/Energy constituted by the State for R-APDRP. The scope of the Committee will . be extended to cover IPDS. The DRC will ensure that there is no duplication of works wnile recommending the projects to the Nodal Agency. Power Finance  Corporation Limited (PFC) will act as the Nodal Agency for  operationalization of  the scheme. The Nodal Agency will be paid 0.5% of the total project cost as their fee. The projects will be appraised and duly recommended by the Nodal Agency for approval of the Monitoring Committee chaired by Secretary (Power), Ministry of Power, Govt. of India.

1. Monitoring Committee: The DPRs will be placed for approval of the Monitoring Committee under the Chairmanship of Secretary (Power). The Committee will consist of representatives from Ministry of Power,· Ministry of Finance, Ministry of Urban Development, Ministry of Housing & Urban Poverty Alleviation, Ministry of New and Renewable Energy, Central Electricity Authority (CEA) and Planning Commission. Chairman & Managing Director, PFC will be the Member Secretary & Convener of the Committee. The Committee will be emp.9wered to approve operational guidelines to be prepared by the Nodal Agency for implementation of the scheme and to amend these guidelines (including the scope of work in Annexure-11) from time to time within the overall approval to be granted by CCEA. The Committee will also monitor implementation of the scheme.

1. Tripartite/ Bipartite agreement: Suitable Tripartite agreement will be executed between PFC as . the Nodal Agency on behalf of Ministry of Power, the State Government and the Discern to ensure implementation of the scheme in accordance with the guidelines prescribed under the scheme. Bipartite agreement will be executed  in case of State Power  departments.

1. Project Management Agency (PMA): A Project Management  Agency (PMA) will  be appointed by the utility for monitoring and ensuring  timely  implementation of  the project. 100% grant will be provided by Gal towards expenditure incurred on. Project Management Agency (PMA) as per provision in the scheme which will  be limited  to . 0.5% of cost of works.

1. Execution Period: Projects under the scheme will be completed within a period .  of 24 months from the date of issue of Letter of Award (LoA) by the utility. In case the Discerns / Power Departments are not able to complete the projects  within stipulated  time period due to circumstances beyond their control, the proposed Monitoring . Committee will be authorize-d to grant time extension based  on  merits in  exceptional cases on a case to case basis.

1. . Supporting/ Enabling  activities  of Ministry  of Power:  A  provision  of  0.5%  of the total project cost has been kept for the supporting/ enabling activities of Ministry of Power relating to implementation of the scheme such as capacity building, awareness creation, monitoring, field inspections, evaluation studies, training etc.

1. Funding pattern: The funding mechanism is proposed as  under:

# Special Category States (All North Eastern States including Sikkim, J&K, Himacha/ Pradesh, Uttarakhand)

*Minimum contribution by Discom(s) is 10% (5% in case of Special Category States). However, Discom{s) contribution can go up to 40% (15% in case of Special Category States), if they do not intend to avail loan. In case, the Discom(s) do not avail loan, the maximum eligible additional grant would be 15% (5% in case  of Special Category States) on achievement of prescribed milestones. The loan component would be provided by PFC or by other Fis /  Banks.

Note: 100% grant will be provided by Got towards expenditure incurred on activities  for bridging  the missing links of National Optical Fibre Network (NOFN), Training & Capacity Building, Establishment of National Power Data Hub at CEA and Project Management Agency (PMA) as per provision in the  scheme.

1. Release of funds by· Gol: The grant support from Gal is proposed  to  be  extended  as per  following milestones:

1. Milestones for release of additional grant (50% of loan component i.e. 5% for special category States and 15% for other States}: Additional grant (i.e. conversion of 50% of loan component) under the scheme will be released subject to achievement of following   milestones:

(a)      Timely completion of the scheme as per laid down milestones

(b)      Reduction in AT&C losses as per trajectory finalized by MOP in consultation with State Governments (Discom-wise)

(c)      Upfront release of admissible revenue subsidy, if any, by State Govt. based on metered consumption

1. Implementation of IT enablement of distribution sector and distribution network strengthening under R-APDRP component of the scheme: All ongoing projects  under  this component  of the scheme  will be implemented  as per CCEA  approval

dated 21.06.2013 and the commitment made/targets fixed under RAPDRP will be completed by carrying forward the approved outlay of RAPDRP to IPDS. A copy  of  Order issued by Ministry of Power earlier, conveying the approval of CCEA, with regard  to continuation of R-APDRP during XII and XIII Plans is enclosed at Annexure-111.

1. A model benchmark for power systems in urban areas which sets standards in items like digital / prepaid metering, underground cabling of 11KV and LT lines, limits for AT&C losses etc. will be prepared by CEA within 45 days of the approval of the CCEA i.e. by 5t h  January 2015.

1. The expenditure involved on above scheme would be debitable to approved budget grant No. 2801.03.00.35 of Ministry of Power for the year 2014-15 and  the relevant budgetary heads of subsequent years.

1. The scope of work listed in Annexure II of this sanction will be eligible for funding provided it is not covered under any Gel programme like RAPDRP / RGGVY/ NEF etc. The projects for which any other grant/ subsidy from Government of India has already been received I proposed to be received shall not be eligible under this scheme. Distribution Reforms Committ e (DRC) at the State level under the Chairmanship of the Chief Secretary/Principal Secretary/Secretary Power/Energy constituted by the State for R-APDRP shall ensure that there is no duplication of works while recommending the projects to the Nodal Agency.

1. The Nodal Agency will submit monthly progress report indicating both financial and physical progress on the implementation of the scheme to Ministry of Power and CEA

1. The detailed guidelines for the implementation of the scheme will be issued separately.

1. This issues with the concurrence of Finance Branch of the Ministry of Power vide their Dy. No. 191/Fin/2014 dated 01.12.2014 

1. Chief Secretaries of all States
2. Energy/Power Secretaries of all the State Governments
3. Chairmen of State Electricity Boards/ CMDs of State Power Utilities
4. Chairman & Managing Director, Power Finance Corporation Ltd., New Delhi.

Copy forwarded  to:

1. Director, Cabinet Secretariat, Rashtrapati Bhavan, New  Delhi.
2. Ministry of Finance, Department of Expenditure (OS, Plan Finance           Division-II), North Block, New Delhi.
   1. Ministry of Finance, Department of Economic Affairs, North Block, New Delhi.
      1. Planning Commission, Yojana Bhavan, New Delhi.
         1. Chairperson, Central Electricity Authority, R.K. Puram, New.Delhi.
         2. Finance/Budget Section, Ministry of Power, New Delhi.
         3. Controller of Accounts, Ministry of Power, New Delhi.
         4. Principal Director. of Audit, Economic & Services Ministries, AGCR Building, I.P. Estate, New Delhi.
         5. 13th Finance Commission, Ministry of Finance, Jawahar Vyapar Bhavan,New Delhi.
            1. Department of Programme Implementation, Sardar Patel Bhavan, New Delhi.

Copy to:

PS to Minister of State for Power (Independent Charge) PPS to Secretary (Power)

PS to SS (RNC) / SS (DC)

PS to JS(D)/Joint Secretary & FA/  All JS in Ministry of Power

Annexure-1

IPDS Outlay and the GBS Requirement

Outlay for components other than relating to IT enablement of distribution sector and strengthening of distribution network  under R-APDRP:

GBS for components other than relating to IT enablement of distribution sector and strengthening of distribution network under R-APDRP :

(Amount in Rs crore)

Annexure- II

Scope of works

1. Strengthening of sub-transmission and distribution network

The following works shall be eligible to be covered under the scheme based on study/assessment carried by the respective State Discerns / Power Departments for identifying critical gaps in sub-transmission and distribution network considering all relevant parameters (such as voltage regulation, HT & LT ratio, optimum loading of transformers & lines, reactive power management, power factor improvement, standard of performance, ongoing works under other schemes etc.):

(i)            Creation of new sub stations including GIS along with associated 66 KV/ 33 KV/ 22 KV/ 11 KV lines

(ii)           Augmentation of existing sub-stations capacity by. installation of higher capacity/additional power transformer along with associated equipment/ switchgear etc.

(iii)         Erection      of     HT     lines      for     reorientation/re-alignment        including augmentation of existing lines

(iv)         Installation of new distribution transformers and  augmentation  of  existing distribution transformers  along with associated LT lines

(v)          Installation of capacitors

(vi)         Renovation and Modernization of existing sub-stations and lines

(vii)        Laying of under-ground cables  in densely  populated  areas  and  areas of tourism  and religious  importance

(viii)       High voltage distribution system (HVDS)

(ix)         Aerial Bunched Cable for theft prone areas

(x)          IT Applications

(a)   ERP

(b)   Customer Care Services

1. Metering

(i)            Installation     of    suitable      static     meters     for     feeders· ,  .distribution transformers and all categories of consumers for existing un-metered connections, replacement of faulty meters & electro-mechanical meters.

(ii)           Installation of Pillar Box for relocation of meters outside the premises of consumers including associated cables and accessories

(iii)          Installation of prepaid / smart meters in Govt. establishment

(iv)         AMI, Smart meters in the towns where SCADA being established under R-APDRP.

(v)          Boundary meters for ring fencing of Non-RAPDRP Towns with population more than 5000

(vi)         AMR for feeders, Distribution transformer and high load consumers

1. "IT enablement of distribution sector and distribution network strengthening under R-APDRP" component as per ongoing RAPDRP scheme in accordance with CCEA approval dated 21.06.2013 for continuation of scheme in 12th and 13th Plan and applicable guidelines
   1. Completion of optical fibre missing links to connect all the  33 KV or 66 KV grid  sub stations under  the  establishment  of  National  Optical  Fibre  Network (NOFN)

1. Establishment of National Power Data. Hub at CEA

1. Training & Capacity Building

1. Provisioning of Solar Panel

Above works shall be eligible under the scheme provided proposed scope of  works is not covered under any Gol program like R-APDRP/ RGGVY / NEF etc. The projects for which any other grant I subsidy from Government of India has already been received / proposed to be received shall not be eligible under this scheme. Distribution Reforms Committee (DRC) at the State level under the Chairmanship of the Chief Secretary/Principal Secretary/Secretary Power/Energy constituted by the State for R-APDRP shall ensure that there is no duplication of works while recommending the projects to the Nodal Agency.

List of items not eligible to be covered under the scheme

1. Works already covered under other schemes of Govt. of India.
   1. AMI in the towns where SCADA is not planned under R-APDRP
   2. Civil works other than sub station
   3. Service lines to consumer
      1. GIS survey  of assets  and consumers
      2. Cost of land for sub-stations
      3. Compensation towards right of way
      4. Distribution automation and IT applications (except ERP and Customer Care Services)
         1. Office equipment/ fixtures
         2. Spares (Other than mandatory spares prescribed by the manufacturer)
         3. Tools and Plants (T&P)
         4. Vehicles
         5. Salaries and Establishment Expenditure

Annexure-111

No . 14/01/2011- APDRP

Government of India Ministry of Power

Shram Shakti Bhavan, Rafi Marg,

New Delhi- 110001

Dated July 08, 2013

Subject: Continuation of Restructured Accelerated Power Development and Reforms Programme (R-APDRP) in XII / XIII Plan

In continuation with Ministry's earlier Order No 14/04/2008-APORP dated September 19, 2008, sanction of the President is conveyed for continuation of Restructured Accelerated Power Development  and Reforms Programme  {RAPDRP) in XII/ XIII Plan with the approved outlay of Rs 10,830 crores for  XII Plan  and Rs 11,897 crores for XIII Plan. The details of outlay and GBS are in the   Annexure.

1. The above sanction is for continuation of projects already sanctioned under R­ APDRP and corresponding conversion of loan into grant in XII Plan . As it is expected that some more Part-A, SCADA and Part -B projects which will be sanctioned in XII Plan, may spill over to XIII Plan, the above sanction will also cover its execution and corresponding  conversion of loan into grant of such spillover  projects.

1. The deadline for completion of Part-A projects under R-APDRP is extended by another two years for all states for conversion of loan into grant i.e. Part-A projects shall be required to be completed within a period of 5 years from the date of the sanction instead cf present period of  3 years.               ·

1. The funding under Part-C for innovative I pilo t projects is extend ed. Out of Rs 1,177 crores outlay provided for Pa1i-C in t11e scheme, Rs 50 crores earmarked for pilot projects in the areas of innovative technology, smart grid etc. is increased to Rs 250 crores and this increase wiil be mobilized from estima ted savings from the other components  of Part-C and D of the programme

1. Coverage of Part-B projects is extended to all SCADA  eligible  towns  with AT&C Joss level Jess than 15% for only SCADA enabling electrical component s, as against the current eligibility of only those towns which have AT&C losses more than 15°,{, Steering· committee of R-APDRP will finalise appropriate guidelines for conversion  of loan into grant in such cases.

1. Coverage of Part-B projects is also extended to towns of religious and tourist importance irrespective of town's AT&C loss level· subject to a ceiling of 10 towns. Wherever such projects have been taken up earlier in such towns. ex-post facto approval is gnanted. Steering Committee constituted for the scheme srall frame  0bjective criteria after due consultation with Ministry  of  Tourism  br  categorizing towns  of  religious  and  tourist  importance  for  the  purpose  of  R-APDRP.  Steering Committee of R-APDRP will finalise appropriate guidelines for conversion of loan into grant in such cases.

1. No  private  utility·  will be  included  under  R-APDRP.  However,  in  respect  of Odisha, R-APDRP funding to CESU could be considered in view of its status as a deemed Govt. Entity and that Govt. of Odisha has accepted the obligation 0f the repayment  of  loans  and implementation of  projects.

1. Power Finance Corporation shall continue to remain the Nodal Agency for operationalising the programme. Steering Committee may be authorized to appoint additional Nodal Agencies, if felt necessary.

1. There will be no change in the approved programme size of Rs 51,577 crores under Central Sector Scheme. Initially Rs 50,000 crores will be provided / arranged  as loan from Gal / Fis, out of which an estimated amount of Rs 30,000 crores would be converted into grant. The total grant from Government of India is estimated as Rs 31,577 crores. However, the actual requirement would depend on the achievement of targets by the Utilities. Rs 5,697 crores has already been released  in XI Plan.  Rs  10 ,830 crores has been allocated for XII Plan. Balance fund of Rs 11,897 crores will spill over to XIII Plan.

1. Other terms and conditions such as scope, eligibility criteria, funding pattern including conversion of loan into grant, approval and monitoring mechanism etc. shall remain the same as approved in XI Plan R-APDRP.

1. .  Further  continuation  of  the  scheme  in  XIII  Plan  would  be  subject  to the compliance of the orders of Gal prevailing at that point of time.

(G. Swan Za

Under Secretary (R-APDRP)

Tel: 23705957

To

1           Chief Secretaries of all States

2           Energy/Power  Secretaries  of all the State Governments

1. Chairmen  of State Electricity  Boards/ CMDs of State Power  Utilities
2. Chairman  & Managing  Director, Power Finance Corporation  Ltd., New Dellli.

Copy forwarded to:

1           Cabinet  Secretariat  (Smt  Sanjukta  Ray,  Director) ,  Rashtrapati  Bhavan.  New Delhi.

1. Ministry  of  Finance, Department of Expenditure  (OS , Plan Finance Divis1on- li) , North Blo, New Delhi.                                                  .
2. Ministry  of  Finance,  Department  of Economic Affairs,  North  Block  , New Delhi.
   1. Planning Commission, YoJana Bhavan . New Delhi.                                 

Chairperson, Central Electricity Authority, R.K. Puram, New Delhi.