State background

Karnataka state located in the southern part of India with an area of 192,000 square
kilometres is divided into 27 districts with over 66% of its population residin in rural
areas! "he 2001 #ensus results reveal that the state$s population is %2!9 million as aainst
&%!0 million a decade ao with a densit' of 27% persons per square kilometer! "he
decennial rowth rate ()etween 1991 and 2001* is 17!2% %! "he ur)an and rural rowth
rate composition is 2+!+% % and 12!0% % respectivel' (,oK, 200%*!
"he state reistered a 7!+ % rowth rate of ross state domestic product (-./* over the
last 'ear! "he /lannin #ommission has tareted an am)itious rowth rate of 10!1 % till
the end of 2006007 for the state (,oK, 200%*! 1n earl', ood monsoon ave an impetus to
aricultural rowth durin the 'ear 200&20% which resulted in a considera)le
improvement in the production of all crops and triered an upsure in the rowth rate of
primar' sector to 6!7%! "he estimated rowth rate for the secondar' sector was 6!% %
durin 200&20%, which is mainl' attri)uta)le to )etter performance in the manufacturin
and information technolo' sector! "he tertiar' sector will reister an anticipated rowth
of 12 % at current prices! "his has )een mainl' )ecause of software e3ports and
sinificant contri)utions from the communication and transport sectors!
Status of energy sector
"he state depends )oth on commercial and non commercial forms of ener' and has no
coal deposits and therefore has to import it! "he electricit' source for Karnataka has a
mi3 of h'del, thermal and wind! "he state$s ma4or need of oil is also not availa)le in the
state itself! 5lectricit' is the ma4or commercial ener' source (a)out %6% as till late
1990s*! In Karnataka, non2commercial ener' sources like firewood, aricultural
residues, charcoal and cow dun account for %6!2% which demonstrates a hih
dependenc' on )iomass to meet rural ener' needs!
"a)le )elow shows the rowth in Karnataka$s demand for ener' durin the period from
199%296 to 200620&!
"a)le7
Units 1995-96 1999-00 2003-04 Growth
rate !"
Installed capacit' 89 6&92 &%90 &9+& &!%
,eneration 8:s 1%&&9 20901 29279 +!6
#onsumption 8:s
a! .omestic 8:s 26%& 666% &669 7!2
)! Industrial 8:s %092 &662 %661 0!6
c! Irriation 8:s 7666 6609 +929 2!&
d! /u)lic lihtin 8:s 1%+ &62 %79 17!6
-ource7 K/#;
"he power sector in Karnataka has one throuh man' chanes in the past such as
capacit' e3pansion and production, evolution of new institutions, shifts in ownership
structures and fuel mi3es and so on! "hese developments have mainl' taken place on the
eneration side )ecause of the initial focus of reforms on suppl' side! "he focus is now
shiftin towards transmission and distri)ution with the introduction of the new 5lectricit'
1ct 2006 that came into force from <une 2006! In addition to strenthenin of the leal
aspects of power eneration, transmission and distri)ution, this new 1ct also hihlihts
the importance of providin electricit' of ood qualit' at reasona)le rates that can
increase the economic activit' and in turn lead to competitiveness in the market! =verall,
this 1ct has an o)4ective of )rinin a)out a qualitative transformation in the electricit'
sector (>ao, 200&*!
"he reforms in power sector in Karnataka started in earl' 1990s in order to improve the
sector$s performance! "he ,overnment of Karnataka came out with a eneral polic'
proposin fundamental and radical reforms in the power sector! 1ccordinl' a )ill,
namel' Karnataka 5lectricit' >eforms 1ct was passed )' the Karnataka ;eislature! "he
>eform )ill has mandated ma4or restructurin of the Karnataka 5lectricit' ?oard and its
#orporatisation (K5>#*!
"he electricit' eneration in the state has come down over the last three 'ears i!e! from
2001202 to 200620& and the dependence on other states for meetin electricit'
requirements has increased as iven in "a)le 2! "he secondar' data on the consumption
side reveals that the share of domestic and ariculture sectors in total power consumption
has increased considera)l', while the share of industrial sector in the power suppl' from
the rid has drasticall' declined over the 'ears impl'in a su)stantial rowth in the
captive eneration durin this period!
"a)le 2
/roress in power sector in Karnataka
.escription :nits 2001002 2002006 200600&
"otal installed capacit'
(cumulative* 89 &7&+ %1&7 %++0
5lectricit' eneration 8k9h 200%& 1901% 1+67%
5lectricit' imported (total from
central and other states* 10
6
k9h 7609 90&6 10220
/ump sets electrified
(cumulative* 10
%
16 1&!02 1&!16
-ource7 Karnataka /ower "ransmission #orporation ;imited (K/"#;*
1
!
1
/ost 1st <une 2002, the data iven in ta)le 1 is not pu)lished )' K/"#; and is compiled )' each of the
four power distri)ution companies! "he data iven in the ta)le is collected from ,eneral 8anaer,
#orporate =ffice, K/"#;, who compile this information for their data)ase from all the relevant sources!
5ner' imported (ross* in million units as on 61 8arch 200% iven in the ta)le 6 )elow
shows that the dependence of the state on the central eneratin stations is hih and there
is not adequate suppl' in the state itself to meet the demand for power!
"a)le 67 5ner' imported (ross* in million units as on 61 8arch 200%
1 9ithin the state 1+76%
2 I//s 2901
6 #entral eneratin stations 11&7&
& =utside the state 2
% =utside the state 2
6 "otal 66110
-ource7 K/"#;
;ookin at the consumption sector wise, it can )e seen that the ma4or consumer cateor'
of electricit' in Karnataka is ariculture, mainl' for irriation practices! "he electricit'
consumption for irriation pump sets in Karnataka has almost dou)led over a period of
12 'ears )etween 1992096and 200600&! It has increased from %6&0 million units in
1992096 to +929 million units in 200600&!
=f the total 22 "9h (tera watt hour* of electricit' sold to various consumers in Karnataka
in 200620&, share of ariculture consumption was &1%, industrial 2&% (with ;" power
6% and @" power 1+%*
2
, domestic 21%, and commercial 7%! "raction 0!2%, pu)lic
water works 2%, pu)lic lihtin 2!+%, distri)ution licensee and K/# (Karnataka /ower
#orporation* installations and temporar' suppl' 2% consume the )alance 7% electricit'!
2
In Karnataka, industries with contracted demand )elow 66 kA1 or an' industr' with contracted demand
(or sanction load* iven in hp (horse power* is classified as ;" consumers, and those with contracted
demand of 66 kA1 and a)ove are classified as @" consumers!
Status of #ura$ %$ectrification in &arnataka
"he state had )een declared 100% electrified in 19++ with electrification of 26772
inha)ited villaes )een electrified! -tatus of >ural 5lectrification (>5*, as per #51 data,
in Karnataka as on 61 8arch 200% sa's that a total num)er of 27066 inha)ited villaes
e3ist as per 1991 census and out of this a)out 26772 villaes are electrified! "he villae
electrification rate is 9+!9% as 2+6 villaes were declared as not feasi)le for
electrification leavin a )alance of 11 villaes which had to )e electrified that time!
1s per 2001 #ensus, total num)er of rural households in the state is 6!67 million and
households electrified are &!+1 million which constitutes 72!16% of electrified rural
households! 1part from the statistics on rural electrification, there are some schemes such
as Kutir <'oti /roramme where rant amount of >s!1&06 million has )een provided to
Karnataka and the' have reported release of a)out 1!&7 million Kutir <'oti connections
up to 61 8arch 200%!
In 2002 Karnataka )ean e3perimentin with the use of the pancha'ati ra4 s'stem to
improve revenue realisation in rural areas so that the marketa)ilit' of the rural power
sector would improve under privatisation! 1t that time :-1I. offered to support the
capacit' )uildin process of Karnataka$s ,ram /ancha'at (,/s* )' leverain the
aenc'$s own e3perience in -outh 1sia under the effort called B/articipator' >ural
5ner' -ervices in Karnataka (/>5-K*C!
"he proramme helped in understandin that rural people are not averse to new
technoloies or responsi)ilities! "he' onl' need to )e educated in their lanuae and
allowed sufficient time to understand and react! "he' require friendl' approach and an
interactive mode of communication! "he' do not refuse to pa' for the services rendered
to meet their needs as lon as the overnment does not stop them from doin so as the'
look for sustaina)le options!
-imilar initiatives which were recentl' launched include >a4iv ,andhi ,rameen
Aid'utikaran Do4anaE (>,,AD*, a new rural electrification scheme which was launched
)' the ,overnment of India has an aim to provide electricit' to all households in villaes!
;ike />5-K, a participator' model of improved rural electricit' services, it is hoped that
>,,AD scheme will lead to an overall )enefit of rural electrification in the countr'!
:nder the >,,AD scheme, a rural electricit' distri)ution )ack)one with at least one
66011 KA or 66011 KA su)2station is to )e created in each )lock to )uild infrastructure )'
installin at least one distri)ution transformer in each villae or ha)itation! .ecentralised
distri)ution eneration is to )e undertaken where rid suppl' is neither feasi)le nor cost2
effective! "he ultimate aim is to )ride the ur)an2rural divide and accelerate rural
development )' eneratin emplo'ment and eliminatin povert'! It would also pa'
special attention to aumentin and modernisin rural infrastructure and electrification!
#enewab$e energy 'rogra((e of &arnataka wind ) bio(ass etc - are there
interesting cases that we can high$ight* eg
see+htt'+,,www-und'-org-in,U./0.%1S,2ay04,2-'g05-ht("3'$- add
9ind ener' is perceived to )e clean ener' source availa)le in pletiful in some pockets
of the countr'! In Karnataka, it is estimated that windmill eneration potential is to an
e3tent of 6000 89 of which at least 60 to &0% can )e full' harnessed!
4rans'ort Sector 5
"he rowth in Aehicles
It has )een universall' reconised that improved transport s'stems are essential for
accelerated economic rowth! "ransportation in the ur)an conte3t assumes even reater
sinificance! ;are alomerations such as ?analore are seen as the vertices of
continued economic rowth! -uch ur)an development puts reat pressures on all cit'
functions, amon these the transportation s'stem, which is of vital importance for
economic efficienc' as well as for social reasons! "he productive efficienc' of ur)an
alomerations will )e maintained onl' if mo)ilit' requirements in the cities are full'
met! @owever, this productive efficienc' in ur)an Karnataka is now threatened due to the
increasin num)er of vehicles causin conestion, and thus slower speeds on roads!
=)viousl' transportation infrastructure could )e the primar' )ottleneck for the
unimpeded rowth of the state!
In addition, emissions from this sector account for a su)stantial and rowin proportion
of the total emissions loadin in ur)an areas! In ?analore, for e3ample, a)out 90
thousand tonnes of criteria pollutants were emitted 'earl' )' +00 thousand vehicles
reistered in ?analore durin 199%096, which was almost %0% more than in 1990091
("5>I 1997*! "he impact of this emission loadin on pu)lic health and the consequent
health2care costs are enormous! From the point of view of e3posure to eneral
population, vehicular emissions are important since these are round level sources and
thus have ma3imum impact on the eneral population!
"herefore, as a strateic option, there is a need to have solution to have an efficient
transport s'stem that must )e linked with oals of fosterin economic development,
enhancin the environment, reducin ener' consumption, promotin transportation2
friendl' development patterns, and encourain fair and equita)le access to residents of
different socio2economic roups! In order to achieve it, there is an urent need to have a
transport polic' for the state which should evolve around the followin options7
1! Increasin the modal share of pu)lic transport
/romotin pu)lic transport would depend not onl' on the suppl' of pu)lic )uses to the
cit', )ut also on the relative costs of travellin )' pu)lic and private modes vis2G2vis their
relative convenience! "his would involve improvin the efficienc' and qualit' of service
deliver' of pu)lic transport while restrainin the use of personal vehicles! "wo factors
would come into pla' here, namel' the per kilometre cost of travel )' pu)lic transport
compared to that )' private modes and second, the convenience and perceived personal
)enefits from )oth the modes of travel! "hus, the strateies that would )e developed
alon the followin two themes!
>estrainin the use of personal vehicles
8akin pu)lic transport more attractive
2! Hon motorised transport
Hon2motorised mo)ilit' transport covers those modes of transport which are operated )'
animate sources of ener', especiall' human ener' (pedestrians, )ic'cles, rickshaws,
pushcarts* and animal ener' (such as pack animals and animal carts*! "he inherent value
in non2motorised transport (H8"* modes is their low cost, accessi)ilit' to the poor, hih
emplo'ment potential and virtuall' no cost to the environment! ?ecause of this hih level
of dependence of the ver' poor on H8", improvements of H8" are amon the )est wa's
of helpin them!
.espite this potential, H8" has )een disadvantaed in various wa's! It has suffered
from )ein ver' danerous mode of transport! "his is larel' due to the failure to separate
fast and slow movin traffic adequatel' 2 the a)sence of sidewalks for pedestrians and of
c'cle paths )ein common defects! "herefore, there is a need to more e3plicitl' consider
financin of separated rihts of wa' and facilities for non2motorised traffic (and
particularl' its safet'* in ma4or infrastructure schemes!
6! -moother mo)ilit'
"he focus is required to develop policies for promotin less pollutin and sustaina)le
modes of transport such as development of infrastructure for non motorised transport,
priorit' to pu)lic transport to facilitate modal shifts!
&! Aehicle technolo' and fuel qualit'
1 two proned approach is required to address the concerns reardin newer vehicles!
=ne, at the macro level, strateies are needed to identif' and promote cleaner vehicle and
fuel technoloies in an interated manner usin the polic' interventions at the disposal of
the state overnment such as sales ta3es and reistration fees! -imultaneousl', at the pilot
level, a set of options which reduce emissions per vehicle is required to )e identified such
as technolo' upradation in enine that reduce the ener' intensit', end of the pipe
treatments that reduce emissions, or the use of alternative fuels!
%! Inspection and maintenance for in use vehicles
For the e3istin vehicle fleet, it is essential to develop an institutional and reulator'
framework for an inspection and maintenance scheme )ased on the international
e3perience in the sector, the current reulator' and leislative reime, and the financial
via)ilit' of the scheme!
%nergy Security cha$$enges for the state based on discussion in 1" for eg status of
'ower sector refor(s inc$uding subsidy issue ) de(and side (anage(ent) #%
de6e$o'(ent ) 7nstittuiona$ coordination issues in energy sector ) urbani8ation)
en6iron(enta$ i('acts etc"
%nergy Security Strategies for &arnataka
Energy conservation
1nother solution to the ener' pro)lems is optimal utilisation of indienousl' availa)le
ener' resources, which is essential from ener' securit' perspective! Improvin ener'
efficienc' increases productivit' sinificantl' reduces ,@, emissions and reduces solid
waste production! For Karnataka state also, there is a need to have policies and prorams
that can improve efficienc' in the ener' sector and can )e classified as7
,ood housekeepin practices
>eulation and0or standard
Industrial coeneration
Fuel switchin
Fiscal policies like ta3es, ta3 re)ates, su)sidies etc!
1reements0tarets
?enchmarkin
5ner' audits
Information dissemination and demonstration
>I.
5ner' securit' could )e achieved )' focussin on the followin areas which would
reduce the needs for conventional fossils like coal in the short and lon term7
Improvin the efficienc' of the e3istin plants and machiner' resultin in reduced
specific fuel consumption and heat rate for power eneration
:tilisin waste heat from flue as and condensers of thermal power plants
.evelopin economical technoloies to utilise all the heat value of wastes and
waste fuels and usin alternate fuels in place of conventional fossil fuels!
Improvin technoloies of renewa)le ener' )ased power eneration and utilisin
renewa)le ener' sources to the ma3imum possi)le e3tent!
Introducin 8ass >apid "ransport -'stems
Way forward/Conclusions