BRIEF HISTORY OF POWER SECTOR IN DELHI

    1. Introduction:- Electricity plays a vital role in our day-to-day life.  It powers our houses, industries, hospitals and in fact our entire economy.  Historically speaking the modern electricity industry utility system was first introduced to the world on the opening of Thomas Edison’s Pearl Street Electricity Generating Station on September 4^th , 1882 at New York (United States of America).  Insofar as Delhi is concerned, the position is that as per available records, the first diesel Power Station was established in Delhi in the year 1905 when a private English Company by name M/s.  John Fleming was given permission to generate electricity under the provisions of the Indian Electricity Act 1903.  The above mentioned Company was given the responsibility both of generation and distribution of power in a limited manner.  That Company after obtaining license under the provisions of Electricity Act 1903 had set up a small 2 MW Diesel set at Lahori Gate in Old Delhi.  Later on, this very Company was converted as Delhi Electricity Supply and Traction Company.   In the Year 1911, the power generation was augmented by Steam Generation Station.  In the year 1932, the management of Central Power House was handed over to New Delhi Municipal Committee (NDMC).  In the field of power generation and distribution, a major break through was achieved in 1939 when Delhi Central Electricity Power Authority (DCEPA) was established.  This Company was responsible for the supply of power to the areas covered by Local Bodies, namely, the Municipal Committees of Delhi, West Delhi and South Delhi, the Notified Area Committees of  Red fort,  Civil Lines, Mehrauli, Najaf Garh, amd the District Board of Delhi.  The supply of electricity to the Municipal Committees of Delhi-Shahdara and the Notified Area of Narela was done by different private agencies.  In 1947 DCEPA took over a Private Limited Company by name Delhi electric Supply & traction Company Limited.       

     2.  Promulgation of Electricity (Supply)Act 1948:-  In the year 1948,  electricity (Supply) Act 1948 came into force, which inter-alia provided  for the constitution of an electricity Board in the States that was to function as a vertically integrated electricity utility in the entire State, undertaking all the functions of activities related to electricity, which included electricity generation, transmission, distribution, supply,  planning coordination and also was to act as regulatory authority for carrying out other functions incidental and ancillary thereto.  In other words, the Electricity (Supply) Act 1948 was entitled to become a monopolistic undertaking in the field of electricity control by an instrument of the state and not by private sector.  The principal objective behind the above policy decision of the Government of India in providing for the constitution of State electricity to all, particularly in semi-urban and rural areas because till then the availability of electricity was confined to urban areas and was mainly served by private electricity distribution licenses issued under the Indian electricity Act 1910.

      3.   Formation of Delhi State Electricity Board: - In pursuance of the provisions of the Electricity (Supply) Act, 1948, in Delhi, in the year 1951 the Delhi State Electricity Board (DSEB) came into existence and the responsibility of generation and distribution of electricity was taken over by DSEB from DCEPA.  The entire staff of DCEPA and other agencies was absorbed by DSEB under the existing terms & conditions of service.

      4.   Notification of Industrial Policy Resolution:-   In the year 1952 the Government of India notified the Industrial Policy Resolution under the Industries Development and Regulation Act 1951 where under the electricity industry, which included all aspects of generation, transmission, distribution, and supply of electricity, came to be reserved for State sector.  In other words, the private sector was not entitled to commence any business of generation, transmission, distribution, and (or) supply of electricity.

      5.   Formation of Delhi Electric Supply Undertaking by promulgation of DMC Act 1957:-   After the promulgation of the Delhi Municipal Corporation Act 1957, the DSEB was dissolved and the functions of DSEB were taken over by Delhi Electric Supply Undertaking (DESU), which came into existence in 1958.  After the formation DESU, the generation and distribution of electricity to all the areas of Delhi came under DESU and the employees of erstwhile DSEB were also absorbed by DESU.

      6.   Constitution of Delhi Vidyut Board: -   The Government of the National Capital Territory of Delhi vide notification No.  F.11 (10)/92-LSG /PF (II) dated 24.02.1997, issued under the Electricity (Supply) Act, 1948, constituted a separate Electricity Board, i.e. the Delhi Vidyut Board (DVB) for the NCT of Delhi w.e.f. 24.02.1997 for the purpose of generation and distribution of power to the entire area of NCT of Delhi except the areas falling within the jurisdiction of NDMC and Delhi Cantonment Board.

      7.   Practical difficulties in the working of Delhi Vidyut Board:-   The activities of Delhi Vidyut Board from its inception, and as a matter of fact even prior thereto when the activities were being undertaken by DESU, were not financially viable on account of several factors affecting the electricity industry including the high level of losses in the system and the revenues being not able to meet the cost with result that like other State electricity Boards, Delhi vidyut Board suffered operating deficit in aggregate to the tune of Rs.2,386.72 crore during the period from 1995-96 to 2000-01.   In addition the Delhi Vidyut Board was required to make adequate provision for bad and doubtful debts.  The cumulative effect of all these factors was that the Delhi Vidyut Board was not in a position to meet its financial obligations and commitments including the payment for power purchased from generation companies  and suppliers, such NTPC Limited,  Nuclear Power Corporation Limited, national Hydroelectric Corporation Limited, etc., etc.

     8.   Unbundling of Delhi Vidyut Board in six entities: -   In the recent for alleviating the concerns of consumers in the power sector, some reforms started gaining momentum.  In that very direction with a view to safeguard the overall interests of the consumers GNCTD took some policy initiatives as as a result of which DVB was split into six Companies, viz.,  BSES Rajdhani Power Limited, BSES Yamuna Power Limited, North Delhi Power Limited, Delhi  Transco Limited,  Indraprastha Power Generation Company Limited, and Delhi Power Company Limited, as per the provisions contained in Delhi electricity reform Act 2000 read with Delhi Electricity Reform (Transfer Scheme) Rules 2001.

9.   Growth in demand of electricity:-   Thus, starting the humble origin, i.e., Private Limited Company having a few employees with primitive generation process, the generation, transmission, and distribution of power to the citizens of Delhi has now come in the hands of above mentioned six Companies with an employee strength which has grown over the years from a meager figure of few hundred to about 20,000.  Prior to 1951, the demand of power in Delhi was about 27 MW which now has grown to about 4,000 MW. Availability of reliable and cheap power is absolutely essential for economic development of any developing society and consumption of electricity is an important indicator of the stage of development of agriculture, industry and commerce.  With the growth of population, industries, importance of Delhi being the national Capital and with the advancement of technology, life style and increased use of new electrical & electronic gadgets, the demand of power has gone up enormously.

     10. Present Scenario: -    The role of Delhi Transco Limited is confined to arrange and provide transmission network of 400 KV and 220 KV source from Northern Grig.  The present infrastructure for this purpose under 400 KV system is 4,725 MVA (2520 MVA with DTL and 2205 with Power Grid Corporation).  As against this, 220 KV sub Stations have the capacity of 6,300 MVA is available for Delhi.

     11. Future Plans :-     In the 11^th Plan ending 2011-12 the transmission capacity is proposed to be augmented to meet the future requirements.  Under 400 KV system, it is proposed to establish new Sub Stations at Mundka, South-East Delhi near Mandi village and East Loni Road  with a capacity of 630 MVA each by DTL and also increase the capacity of existing sub-Station at Maharani Bagh by 630 MVA b Power Grid Corporation of India Limited. Similarly, under 220 KV system, augmentation and new addition in capacity to the tune of 1660 MVA under the existing Sub Stations is proposed.  Further, new Sub Station at DSIDC Bawana-II (320MVA), Chandrawal (200 MVA), Jhatikara More (320 MVA),.  Ridge Valley  (320 MVA),   Rohini-II  (480 MVA),  Sultanpuri  (320 MVA), Electric lane (200 MVA),  Trauma Centre (200 MVA),  Wazirpur Industrial Area  (320  MVA) and IGI Airport  (320 MVA ) are proposed to be established.  Thus, the capacity of 2520 MVA and 5940 MVA will be added in the 400 KV system and 220 KV system, respectively.

      To sum up, by 2011-12 transformation capacity of 8460 MVA will be added and a total capacity of 19485 MVA will be available to Delhi