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December 31, 2021

Electricity (Promotion of generation of Electricity from Must-Run Power Plant) Rules, 2021

 The Ministry of Power in the current year has undertaken an array of reforms. Union Minister for Power and NRE Shri R.K Singh highlighting the reforms said that we have put in place rules and procedures for ease of doing business and ease of living. As a result of the reforms, power sector is poised for greater growth and more reforms are on the anvil in the next year, he remarked.

Shri Singh mentioned that the power sector has shown strong growth in demand in 2021 as it is 14 percent higher than in the previous year, this is indicative of the fact that our economy is recovering and the 28 million new consumers we have added are adding more appliances. The minister noted that the government has continued with reforms in the power sector and efforts also continue to keep the price of power low.

The reforms can be placed in the following categories:

  1. Reforms and Restructuring (R&R)
  • Electricity (Rights of Consumers) Rules, 2020

The Ministry of Power has notified Electricity (Rights of Consumers) Rules, 2020 on 31.12.2020 under section 176 of the Electricity Act, 2003. These Rules shall empower the consumers of electricity and emanate from the conviction that the power systems exist to serve the consumers and the consumers have rights to get the reliable services and quality electricity.  

Implementation of these Rules shall ensure that new electricity connections, refunds and other services are given in a time bound manner.  Wilful disregard to consumer rights will result in levying penalties on service providers.

An amendment to Electricity (Rights of Consumers) Rules, 2020 was also notified on 29.09.2021 wherein the limit for net metering was increased to 500KW from 10KW.

  • Late Payment Surcharge Rules 2021

Electricity (Late Payment Surcharge) Rules, 2021 have been notified by the Central Government on 22nd February, 2021.Late Payment Surcharge means the charges payable by a distribution company to a generating company or electricity trader for power procured from it, or by a user of a transmission system to a transmission licensee on account of delay in payment of monthly charges beyond the due date. Late Payment Surcharge shall be payable on the payment outstanding after the due date at the base rate of Late Payment Surcharge applicable for the period for the first month of default.

  • Waiver of ISTS Transmission Charges and Losses for Solar & Wind Power

In Order to promote generation from renewable sources of energy, Ministry of Power has issued an Order on 5th August 2020 for extension of waiver of Inter State Transmission System (ISTS) charges and losses for transmission of the electricity generated from solar and wind projects commissioned till 30th June 2023.Further an order was issued on 21.06.2021 for extension of waiver of Inter State Transmission System (ISTS) charges for transmission of the electricity generated from solar and wind projects up to 30.06.2025.Moreover vide this order the waiver of ISTS charges shall also be allowed for Hydro Pumped Storage Plant(PSP) and Battery Energy Storage System(BESS).

  • Issuance of Renewable Purchase Obligations (RPO) Trajectory

Long term RPO growth trajectory for the period 2016-17 to 2018-19 has been notified by Ministry of Power on 22.7.2016. .An order on RPO Trajectory for a further period of three years i.e. from 2019-20 to 2021-22 under the provisions of Tariff Policy has been issued by Ministry of Power on 14.06.2018. In super-session of orders dated 22.7.2016 and 14.06.2018, Ministry of Power has specified new RPO trajectory vide order dated 29.01.2021. Trajectory for HPO has also been issued through this order.

This would help in meeting the renewable energy generation targets set by the Central Government.

  • Introduction of Green Day Ahead Market (GDAM)

Green Day Ahead Market (GDAM) is a marketplace for trading of renewable power on a day-ahead basis. This would facilitate accomplishment of green targets as well as support integration of green energy in a most efficient, competitive and transparent manner. GDAM was launched on 25.10.2021.

The Green day Ahead Market will be available through the Power Exchanges. The GDAM market structure will be within the existing Day Ahead Market (DAM) structure but will create a separate clearing mechanism and price discovery for renewable and conventional energy sources.

It will give opportunity to the RE generators to sell their power and reduce curtailment and also the buyer of RE to transparently purchase green power from the market. It would also facilitate the obligated entities to meet its Renewable Purchase Obligation (RPO).

  • Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021

Timely recovery of the costs due to change in law is having importance as the investment in the power sector largely depends upon the timely payments. At present the pass through under change of law is taking a lot of time, forcing the drying of the investment in the power sector. If payment is not made in time, it impacts the viability of the sector and the developers get financially stressed. If this is not addressed now, the investment will not come and the electricity consumers may face shortages of power once again. In order to address this issue, Ministry of Power has notified Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 on 22.10.2021.

  • Electricity (Promotion of generation of Electricity from Must-Run Power Plant) Rules, 2021

Ministry of Power has notified Electricity (Promotion of generation of Electricity from Must-Run Power Plant) Rules, 2021 on 22.10.2021. This rule is mainly to achieve this goal and will help in promotion of the generation from renewable sources. This will ensure that the consumers get green and clean power and secure a healthy environment for the future generation. 

  • Implementation of Phase- 1 of Market Based Economic Despatch (MBED)

With the objective of Redesigning of present market mechanism for lowering the cost of power purchase to Consumers, Framework for Implementation of Phase1 of Market Based Economic Despatch (MBED) wherein mandatory participation by ISGS ( Inter State Generation Stations) plants and voluntary participation by other generators, was communicated to CERC for  implementation from 1st  April, 2022.

  • Redesigning the Renewable Energy Certificate(REC) Mechanism 

Ministry of Power assent was given to make amendment in the existing Renewable Energy Certificate (REC) mechanism, in order to  align the  present REC mechanism with the emerging changes in the power scenario and also to promote new renewable technologies.

  1. Power Market Reforms:
  • Green Term-Ahead Market (GTAM):Pan-India Green Term-Ahead Market in electricity was launched on 1st September, 2020. As a market segment, it has provided one more avenue to renewable to trade electricity which will, inter-alia, help to achieve ambitious renewable energy capacity addition targets of the Government of India. GTAM Contracts will enable obligated entities to procure renewable power at competitive prices at the power exchanges and help meet RPOs.  This would also reduce burden on renewable rich States which can trade the surplus renewable generation generated within the State pan-India. The total cleared volume in G-TAM was 785.83 MU in 2020-2021. In 2021-22, till September, 2021, the total cleared volume was 2744 MU.
  • Green Day Ahead Market (GDAM): After the successful launch of Green Term-Ahead Market (GTAM) in August 2020, “Green Day Ahead Market (GDAM) - a Marketplace for trading of renewable power on a day-ahead basis” has been launched by Sh. R K Singh, Hon’ble Minister of Power and New & Renewable Energy on 25th October, 2021. The intent is to promote merchant green power plants and provide additional sale avenues to existing renewable power plants that are either facing payment risk with the distribution companies (DISCOM) under the existing PPA or have surplus energy. Expected Benefits from the introduction of GDAM are deepening the Green Market, Accelerating the addition of Renewable Capacity, Shift from PPA based Contract to Market-Based Models and Reduction of Curtailment of Green Power. In the Green Day Ahead market launched in October 2021 about 211 MU have been traded from 27.10.2021 to 07.12.2021 at average Price Rs.4.52 per unit.
  • Govt. has introduced Pan India Real Time Market (RTM) of electricity on 3rd June 2020. The introduction of RTMas an organized platform for energy trade closer to real time to the buyers and sellers has not only facilitated grid integration of renewables but also brought greater market efficiency. With RTM, Buyers/sellers have the option of placing buy/sell bids for each 15-minute time block. RTM is benefitting all stakeholders viz. generators including renewable generators having opportunity to sell their surpluses, better management of variability of renewable generation, better utilization of transmission systems, opportunity for distribution utilities to buy or sell power closer to real time and finally consumer getting reliable power supply.In FY 2020-21, the total cleared volume in Real Time Market was 9467.96MU. In FY 2021-22, the total cleared volume in Real Time Market was 9933.4 MU till September, 2021. The highest daily volume of 98.334 MU was traded on 28thAugust, 2021.
  • Despite the Covid 19 pandemic,All India demand continued to achieve the new benchmarks. The highest All India demand of 200570 MW was achieved on 07th July 2021.
  1.   Integrated Power Development Scheme (IPDS)

Government of India notified “Integrated Power Development Scheme" (IPDS) in December’14 to extend financial assistance against capital expenditure to address the gaps in sub transmission and distribution network and metering in urban areas to supplement the resources of Discoms/ Power Departments.

The scheme has an outlay of Rs. 32,612 crore including a budgetary support of Rs 25,354 crore from Government of India during the entire implementation period.

Progress (From 01.11.2020  to 31.10.2021)

  • Total funds invested under the IPDS by GOI + States in this period: around Rs.  3800Cr. with around Rs. 2,290 Cr released as GOI grant from MOP
  • System strengthening of sub-transmission and distribution network has been completed in over 70 circles covering over 500 towns inspite of COVID Pandemic and addition of following infrastructure:
        • 45 new Power Sub-Stations commissioned;
        • Capacity augmentation of more than 50 exiting Power Sub-Stations completed
        • More than 7,000 ckm of Aerial Bunched/Underground cables laid to reduce losses
        • About 3,000 new Distribution Transformers charged for improving power supply in towns
        • Around 1MwP of Solar Panels installed on Govt buildings and Substations as contribution towards green energy
      • Gas Insulated Switchgear (GIS) Substations commissioned for first time in NE States, Haryana; works completed in 25 Substations of AP, Assam, Bihar, Haryana, Rajasthan & Uttarakhand
      • Major projects completed–Underground cabling work under IPDS in Varanasi andKumbh Area, Haridwar
      • Rs.240 Cr approved for around 1000ckm of Underground cabling in Ayodhya
      • Over 5Lakh Smart Meters installed in Andaman Nicobar Islands, Bihar, HP, MP, Punjab& Rajasthan etc.
      • IT enablement of smaller towns completed in 6Discoms&Enterprise Resource Planning (ERP) for improvement in Operational Efficiencies of Discoms completed/upgraded in 5 Discoms during this period.
      • Overall IPDS has contributed in increase in hours of Power supply in urban areas to 22 hours/day and improved consumer convenience though Digital payments etc.

Further, Revamped Reforms Based and Results Linked Distribution Sector Scheme has been approved by Ministry of Power in July 2021 with an outlay of Rs. 3,03,758 crore over a period of five years from FY 2021-22 to FY 2025-26 for providing conditional financial assistance for supporting DISCOMs to undertake reforms and improve performance in a time bound manner with following objectives

      • Improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient Distribution Sector
      • Reduce the AT&C losses to pan-India levels of 12-15% by 2024-25
      • Reduce ACS-ARR gap to zero by 2024-25
  1.    Hydro Power Development:
    • Guidelines for providing Budgetary support for Flood Moderation / Storage Hydro Electric Power projects and Cost of Enabling Infrastructure i.e. roads and bridges were issued by the Ministry on 28.09.2021 to promote the Hydro Sector.
    • All the 04 units of Kameng Hydro Power Project (600 MW) constructed by NEEPCO in Arunachal Pradesh have been fully commissioned and have commenced their operation from 12.02.2021.
    • Luhri Stage-I HEP (210 MW): Investment Approval accorded by GoI on 20.11.2020. Award of EPC package for Civil and HM works awarded on 24.11.2020 and EM works awarded on 16.07.2021.
    • Dhaulasidh HEP (66 MW): Investment Approval accorded by GoI on 01.10.2020. Award of EPC package for Civil and HM works awarded on 06.05.2021.
    • The Model Contract Document for Dispute Avoidance Mechanism in Hydro CPSUs through "Independent Engineer" has been issued vide O.M. dated 27.09.2021.
    • Kholongchhu (600 MW) Hydro Electric Project in Bhutan

The Concession Agreement for the project was signed between Royal Government of Bhutan (RGoB) and Kholongchhu Hydro Energy Limited (KHEL) [Joint Venture (JV) Company of SJVN Ltd (Indian CPSU) & DGPC Bhutan (RGoB PSU)] at Bhutan in the presence of Hon’ble Minister of External Affairs, GoI and Hon’ble Foreign Minister, RGoB on 29.06.2020.  All three main Civil works packages have been awarded on 04.03.2021 & the project is scheduled to be commissioned by Feb., 2026.

    • Lower Arun Hydro Electric Project (679 MW) in Nepal

Lower Arun project was allotted to SJVN Ltd by Government of Nepal (GoN) on Build Own Operate and Transfer (BOOT) basis through international competitive bidding on 04.02.2021.  MoU has been signed for the development of 679 MW Lower Arun HEP between SJVN Ltd and Investment Board Nepal (IBN) on 11th July 2021. 

    • Investment approval for 850 MW Ratle Hydro Electric Project has been accorded on 11.02.2021 with an estimated project cost of Rs. 5281.94 crore (November 2018 PL). The project is scheduled to be completed within 60 months from the date of investment approval.
    • Investment approval for 120 MW Rangit-IV Hydroelectric Project has been accorded on 30.03.2021 with an estimated project cost of Rs.938.29 crore (October 2019 PL). The project is scheduled to be completed within 60 months from the date of investment approval.
  1. Thermal Power:
  • Revised/New Coal Stocking Norms in Coal Based Thermal Power Plants

Central Electricity Authority (CEA), monitors the coal stocks being maintained at the power stations along with their daily coal consumption requirements. The earlier coal stocking norms were advisory in nature, at times; power plants do not maintain coal stock as per the norms, which is not desirable for a sustained plant operation. In view of this, the existing coal stocking norms have been revised and issued by Central Electricity Authority (CEA) on 06.12.2021 to ensure more fuel security to the power plants, reflect true picture of the stocks being maintained at each power stations and ensure sufficient coal stock even during the period of less supply by CIL/SCCL during the month of July to September.

The revised norms mandates 12 to 17 days of coal stock at pit head stations and 20 to 26 days coal stock at non-pit head stations with month-wise variation based on coal despatch/coal consumption pattern during the year corresponding to 85% PLF, and prescribes the coal stocks to be mandatorily maintained by the power plants and penalty mechanism for not maintaining the stocking norms. The coal stock for 17 days at pit head plants and 26 days stocks at non-pit head power plants have been made mandatory during February to June every year.

The power plants are graded as red, yellow and green for not maintaining the coal stocks; and would be penalized for not maintaining their normative availability due to reduced coal stocks and their fixed charges shall be reduced in a graded manner.

  • National Mission on use of Biomass in coal based power plants:

Ministry of Power on 17th November, 2017 issued Policy on biomass utilization for power generation through co-firing in coal based power plants. In this earlier Policy, it was advised in the policy that coal based thermal power plants, except those having ball and tube mill, of power generation utilities, to endeavor to use 5-10% blend of biomass pellets made, primarily, of agro residue along with coal after assessing the technical feasibility, viz. safety aspect etc.   In order to support the energy transition in the country and to achieve the target of cleaner energy sources, the policy has been modified and issued on 08.10.2021. This modified policy would provide the necessary direction in achieving the desired goals.

  • Fuel Linkages under SHAKTI:

Govt. of India, Ministry of Coal had approved a new coal linkage allocation policy on May 17, 2017 named SHAKTI (Scheme for Harnessing & Allocating Koyala Transparently in India). Linkages granted under SHAKTI Policy in the last one year:

Shakti Policy Para B (ii) -  Linkage on auction basis for Independent Power Producers (lPPs) with PPA based on domestic coal. Under clause B(ii) of the SHAKTI Policy, the lPPs participating in auction bid for discount on existing tariff.

    • 4th round auction got completed on 28.09.2021 by PFCCL wherein 3.1983 MT (G11 Grade) was provisionally allocated.

Shakti Policy Para B(viii)(a) – Linkage on auction basis for non-PPA capacity for Short Term & DAM: Ministry of Power issued a methodology in this regard on 02.12.2019 to carry out such auction at every quarter to cater to the dynamic requirements of short term and day-ahead markets (DAM). Amendment to the methodology was issued on 12.05.2020.

    • Till date 5.39 MTs (G13 grade equivalent) of coal have been allocated to various power plants in auctions held for six quarters viz. Apr-June’20, July-Sep’20 and Oct-Dec’20, Jan-Mar’21, Apl-June’21 and July-Sep’21.

    Pilot project for procurement of 2500 MW power:

In order to address the problem of lack of Power Purchase Agreements (PPAs) in the country, the Ministry of Power had notified a scheme for procurement of 2500 MW on competitive basis for a period of 3 years from the generators with commissioned projects having untied capacity.

2nd Round (2500 MW):

    • 21 Bidders (Generating Companies) submitted their Technical and Financial Bid. Financial Bids were opened on 07.02.2020. After e-Reverse Auction Rs 3.26/kWh (Fixed Charge of Rs 1.63 per unit and Variable Charge of Rs 1.63 per unit) tariff was discovered.
    • As per Status report provided by PTC on 10.11.2021, PTC have executed PPAs with the Bidders to whom PFCCL have issued LOAs and PSAs with Utilities/Discoms for a total quantum of 820 MW.
  • Stressed Assets in Thermal Power Sector

Department of Financial Services (DFS) sent a list of stressed projects in the power sector on 22.03.17 to Ministry of Power (MoP). The 34 non-captive coal based power projects mentioned in the DFS list are mostly private and have a total installed capacity of 40,130 MW. Status of 34 thermal power projects of capacity 40,130 MW which are under stress as reported by DFS is as follows:

    1. 17 projects with a total capacity of 20,290 MW have been resolved.
    2. 7 projects with a total capacity of 9,310 MW are at various stages of resolution.
    3. 10 projects with a total capacity of 10,530 MW are at very initial stage of construction and are totally stalled. Such projects have either been ordered to be liquidated or heading towards liquidation.
  1. Highlights under Energy Efficiency :
  • Energy Efficiency Initiatives Launched under the Bharat ka Azadi Ka Amrit Mahotsav
    • With an objective to accelerate Energy Transition in Industrial Sectors, Union Minister of Power released “User Manuals” for different stakeholders of PAT scheme such as BEE, CERC, POSOCO etc. through Video Conferencing on 1st March, 2021.
    • The detailed outcome of PAT Cycle-II including energy savings, investment reported, technology up gradation as well as reduction in CO2 emission was documented by BEE as “Pathways for Accelerated Transformation in Industry Sector” and was released on 1st March 2021 by the Union Minister.
    • Under the vision for ‘Aatmanirbhar Bharat’ Union Minister of Power launched “Energy Efficiency Enterprise (E3) Certifications Programme for Brick manufacturing Sector” in March, 2021 .
    • “Aiming for Sustainable Habitat: New Initiatives in Building Energy Efficiency 2021”Union Minister of Power announced various initiatives being taken by Government of India towards energy efficiency in the building sector on 16th July, 2021. The initiatives launched included:
    • Specifying code compliance approaches and minimum energy performance requirements for building services, and verification framework with Eco Niwas Samhita 2021.
    • The web-based platform ‘The Handbook of Replicable Designs for Energy Efficient Residential Buildings’ as a learning tool, which can be used to create a pool of ready-to-use resources of replicable designs to construct energy-efficient homes in India.
    • Creating an Online Directory of Building Materials that would envisage the process of establishing Standards for energy efficient building materials.
    • Announcement of NEERMAN Awards, (National Energy Efficiency Roadmap for Movement towards Affordable & Natural Habitat), with the goal of encouraging exceptionally efficient building designs complying with BEE’s Energy Conservation Building Codes.
    • Online Star Rating tool for Energy Efficient Homes created to improve energy-efficiency and reduce energy consumption in individual homes. It provides performance analysis to help professionals decide the best options to pick for energy-efficiency of their homes.
    • Training of over 15,000 Architects, Engineers and Government officials on Energy Conservation Building Code (ECBC) 2017 and Eco Niwas Samhita (ENS) 2021).
  • Energy Efficiency in Industry Sector:
    • PAT cycle –II ended on 31st March 2019 wherein 621 Designated Consumers (DCs) from 11 sectors have achieved total energy savings of about 14.08Million tonnes of Oil Equivalent (MTOE) translating into avoiding of about 66 million tonnes of Carbon dioxide. These savings exceeded the notified target by about 18%.The energy saving of PAT Cycle II have been converted to Energy Saving Certificates (ESCerts) tradable at the Power Exchanges. Under the second cycle of PAT, a total of 57.38 lacs ESCerts to 349 industrial units have been issued and 193 industrial units are entitled to purchase 36.68 lacs ESCerts.
    • PAT Cycle –VII has been notified commencing from 2022-23 to 2024-2025 wherein 509 Designated Consumers from 9 sectors have been notified with total energy consumption reduction target of 6.627 MTOE.
  • Energy Efficiency in SME
    • 600 Small Scale Projects have been implemented in 5 Sectors (Ceramics, Dairy, Foundry, Hand Tools, Brass) leading to savingsof about 11452 toe of energy, mitigating 61515 Tonne of CO2 emission, attracted investment of 88 Crs so far. The project is currently in scale-up phase in 23 Clusters.
  • Energy Efficiency in Appliance Sector:
    • 28 appliances in labelling programme.10 Mandatory appliances and 18 Voluntary Appliances.
    • Voluntary star labelling program for UHD TV and Air Compressor launched on 11th January, 2021.
    • Amendment Notification of Tubular Fluorescent Lamps (TFL), LED, Storage Water Heater, Room Air Conditioners, ColorTV  and Refrigerators (FFR and DFR) notified.
    • Existing energy consumption standards for Chillers, Washing Machines, Microwave Ovens has been extended by a period of 1 year starting from 1st January, 2022 to 31st December, 2022.
  • Energy Efficiency in Building Sector:
    • 20 States and Uts namely, Rajasthan, Odisha, Uttarakhand, Punjab, Karnataka, Haryana, Himachal Pradesh, Kerala, Andhra Pradesh, Telangana, Tripura, West Bengal, Uttar Pradesh, Arunachal Pradesh, Sikkim, Assam, Mizoram, Madhya Pradesh and Union Territories (Uts) of Andaman & Nicobar and Puducherry have notified ECBC for their states.
    • Energy Conservation Building Code (ECBC) Cells of BEE, housed at State Designated Agencies (SDAs), are supporting implementation of ECBC at State level. As on 31s October, 2021, 48 ULBs from 8 States have incorporated provisions of ECBC for building approval process.
    • As on 31st October,2021, 264 buildings have been awarded star rating under various categories.
  • Energy Efficiency in Transport Sector:
    • Hon’ble Minister for Road Transport & Highways and Union Minister of Power, launched the “Go Electric” Campaign on 19th February, 2021 to spread awareness on the benefits of e-mobility and EV Charging Infrastructure in India. The launch witnessed the unveiling of “Go Electric” logo which depicts the evolution of e-mobility eco-system.
    • BEE conducted 9 stakeholder consultationwith EV stakeholders to address the challenges faced by implementing agencies in deployment of charging infrastructure.
    • Under the Go- Electric Campaign, State Nodal Agencies / State Designated Agencies have conducted 15 roadshows, 35 webinars and various other awareness activities radio jingles, EV Carnival, hoardings, pamphlets advertisements on electricity bills in multiple states across the country.
  • Strenghthening Energy accounting in DISCOMs:
    • Amendment in exiting Notification: Ministry of Power issued a notification to include all the Electricity Distribution Companies (DISCOMs) under the preview of EC Act. As per the notification (S.O. 3445(E) dated 28th September, 2020), which was formulated in consultation with BEE “All entities have been issued distribution license by State/Joint Electricity Regulatory Commission under the Electricity Act, 2003 (36 of 2003)” are notified as Designated Consumers (DCs). Earlier, the DISCOMs whose annual energy losses were equal to or above 1000 MU were only covered as Designated Consumers.
    • Regulation under EC Act notified by BEE on 6th Oct, 2021 to mandate Energy Accounting by DISCOMs.
  • State Designated Agencies
    • State-wise Actions on Annual targets and Headways on Energy Efficiency (SAATHEE) Portal Launched on 11th January, 2021. It is an interactive web portal for SDAs and will be helpful in capturing physical and financial progress of energy efficiency activities being implemented by States/ Uts across the country.
    • Union Minister for Power chaired a virtual meeting on 22nd October, 2021 with senior officials from State Governments and industry partners to review the current level of activities in the field of energy efficiency and clean energy transition being implemented by State Agencies.   During the meeting, the following reports were released as given below:
      • State Energy Efficiency Index – 2020 – The report of State Energy Efficiency Index – 2020 to help the states in monitoring their programmes by contributing for National Climate Action Goals
    • eBook on Best Operating Practices by SDAs –The e-book on best energy efficiency practices of State Designated Agencies to facilitate the coordination of peer groups and adoption of best practices by other states.
  1. Initiatives for strengthening  Transmission infrastructure
  • Formation of Central Transmission Utility of lndia Ltd (CTUIL): Central Transmission Utility of lndia Ltd (CTUIL), a 100o/o subsidiary of Power Grid Corporation of lndia Ltd, has been notified as the Central Transmission Utility under Section 38 of the Electricity Act 2003 on 9th March 2021 and CTUIL has started functioning w.e.f. 1st April 2021. In due course it will be fully independent and 100% Government owned company.
    • Monetisation of Transmission Assets of Power Grid Corporation of lndia (PGCIL) through lnfrastructure lnvestment Trust (lnvlT)

Based on approval of the CCEA conveyed by MoP vide order 15.09.2020, PGCIL monetised five TBCB projects through POWERGRID lnfrastructure lnvestment Trust (PGlnvlT) in May’21. This is the 1’t lnvlT sponsored by a CPSE and largest public offer by any lnvlT/RelT. PGCIL received Rs.7,735 crore. As per National Monetisation Plan issued by NlTl Aayog, POWERGRID is targeted for carrying out monetisation of Rs. 45,200 crore of assets during FY 2021-22 lo FY 2024-25 (including Rs. 7735 crore already raised during FY 2021-22).

Rules/Policies adopted for robust transmission infrastructure 

  1. MoP Letter dated 06-08-2021 regarding Revised Guidelines and SBDs for procurement of ISTS through TBCB process along with Standard Bidding Documents (SBDs) issued on 06.08.2021 includes Standard Single Stage Request for Proposal for Selection of TSP through TBCB process to establish ISTS projects and Standard Transmission Service Agreement for Development and Operation of ISTS System for Transmission of Electricity through TBCB Route
    • Ministry of Power, in August 2021, has released the revised the Standard Bid Documents (SBDs), containing Request for Proposal (RfP) and Transmission Service Agreement (TSA) for award of Inter-State Transmission System (ISTS) Projects on TBCB. Last SBDs were issued in 2008. Similarly, Ministry of Power had earlier notified “Tariff Based Competitive Bidding (TBCB) Guidelines for Transmission Service” and “Guidelines for Encouraging Competition in Development of Transmission Projects” in April 2006. These Guidelines were also revised and notified in August 2021.
  1. MoP Resolution on Guidelines on Encouraging Competition in Development of Transmission Projects and on TBCB Guidelines as published in Gazette of India on dated 10th Aug 2021
    • Based on extensive stakeholders’ consultation, revised SBDs for award of ISTS systems on TBCB and revised Guidelines have been prepared.   Revised SBD and revised Guidelines would promote ease of doing business for private developers in transmission sector, address concerns of developers on risk sharing, encourage competition in transmission, and facilitate timely completion of transmission lines. All these provisions would bring in more private investment in transmission sector.

3) Electricity (Transmission Planning, Development and Recovery of ISTS Transmission Charges) Rules, 2021 issued on 01.10.2021

    • The Central Government has promulgated the above Rules  paving the way for complete overhauling of transmission system planning to give power sector utilities easier access to electricity transmission network across the country. The rules underpin a system of transmission access which is termed as a General Network Access in the inter-state transmission system.  This providesz flexibility to the States as well as the generating stations to acquire, hold and transfer transmission capacity as per their requirements. Thus, the rules will bring in rationality, responsibility and fairness in the process of transmission planning as well as its costs. 

4) MoP order dated 20.10.2021 for dissolution of 5 Regional Power Committees (Transmission Planning)

    • Prior to this order, regional consultation for planning of ISTS system is done at Regional Power Committee (Transmission Planning) [RPC-TP] and Regional Power Committee [RPC]. In order to fast-track the ISTS planning process, it was agreed to have regional consultation on planning of ISTS system only with RPC and to dissolve RPC-TP. Accordingly, the order will facilitate doing away with dual consultation with regional constituents during ISTS planning process.

5) MoP advisory to all states dated 1.9.2021, along with the Report, for bringing 33 kV system under Transmission for performance improvement of sub-transmission system

    • Ministry of Power had constituted a Committee under the Chairmanship of CMD, POWERGRID, with representatives from Central Electricity Authority, State Transmission Utilities of Haryana, Maharashtra and Odisha and Central Transmission Utility of India Ltd to suggest measures for reduction of losses in the sub-transmission system & for ensuring reliability and efficient performance and to make recommendation for promoting investment in sub-transmission system. The Committee had observed high losses and outage rate at 33 kV level compared to higher voltage level.

Accordingly, to improve the performance of 33 kV system, Ministry of Power has issued advisory to State/Uts on 01.09.2021 to take following actions:

i)33 kV system should be the handed over from DISCOMs to the STU for better planning, loss reduction and increased supply reliability. It can be done in phased manner. In the first phase, incremental assets in 33 kV network and existing overloaded assets/assets can be handed over to STUs.

ii)State Govt. would need to provide financial assistance to STU for upgrading/modernizing their 33 kV assets.

iii)In the event, the State Govt. is not in a position to provide financial assistance to STU, then STU can be asked to form JV with POWERGRID on 50:50 equity basis for mobilising their financial resources.

6) MoP order for Re-constitution of the “National Committee on Transmission” (NCT)

    • As a part of energy transition goal, India has set a target of 500 GW of Renewable Energy capacity by 2030. In view of shorter gestation period required for construction of Renewable Energy Sources compared to that of transmission system, the transmission planning and approval process has been revamped by Ministry of Power to reduce the time taken for planning and approval of transmission system required for evacuation of power from Renewable Energy sources especially.

In order to simplify the process of Inter State Transmission System (ISTS) planning and approval to further facilitate RE development in the country in consonance with energy transition goal, Terms of reference of National Committee on Transmission (NCT) have been modified on 28.10.2021 with delegation of powers to CTU and NCT among others to fast-track ISTS meant for RE.

7) MoP Letter to State & Uts on Report of Task Force on Cyclone Resilient Robust Electricity Trans & Distribution Infrastructure in the Coastal Areas along with Report of Task Force  on Cyclone Resilient Robust Electricity Transmission & Distribution Infrastructure in Coastal Area

    • On the basis of representation received from State, a Task Force was constituted by this Ministry, vide order dated 02.06.2020 to recommend preventive and mitigation measures for minimizing the damages to transmission and distribution infrastructures due to Cyclone in coastal areas of the country.

The task force suggested a multi-pronged approach, which encompasses the change in design philosophy, better planning and adoption of modern technological solutions required to safeguard the T&D infrastructure 

from natural disasters and to increase resilience, reliability and availability of the system. 

After acceptance of the Report by the Ministry, the Report was shared with coastal States and UTs vide MoP’s letter dated 10 June 2021 with a request that each Coastal States/Uts may mark out areas prone to cyclones within 20-30 kms of Coast line and any new construction / reconstruction of Power systems in these areas will follow the design parameters laid down in this report.


December 31, 2021

Enhanced Mining Surveillance Activity Under Satellite Based Monitoring


  • Policy Initiatives

Amendment to Act & Rules


  • The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been amended through the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which has been notified on 28.03.2021, for giving boost to mineral production, improving ease of doing business in the country and increasing contribution of mineral production to Gross Domestic Product (GDP). Some of the major reforms brought in the Amendment Act, 2021 are as under:
  • Removed the distinction between captive and merchant mines. It allows all captive mines to sell up to 50% of the minerals produced during the year after meeting the requirement of attached plant subject to the payment of additional amount as prescribed under sixth schedule of the MMDR Act. Further, all future auctions will be without any end use restrictions.
  • Resolved all pending cases under section 10A (2) (b) of the Act. 
  • Statutory clearances to be valid even after expiry or termination of mining lease and shall be transferred to the successful bidder in the auction.
  • To ensure ease of doing business,restriction on transfer of mineral concessions are removed and now mineral concession can be transferred without any transfer charge. 
  • Additional amount hasto bepaid by government companies on grant of new lease or extension of lease which will ensure additional revenue to State Government.
  • Central Government is empowered to conduct auction in cases where the States face challenges in conduct of auction or fail to conduct auction within prescribed time fixed in consultation with State Government. The revenue from auctions will accrue to State Government. 
  • Empowered the Central Government to issue directions regarding   composition and utilization of funds under District Mineral Foundation (DMF).  Direction to include the MPs, MLAs and MLCs in the Governing Council was issued in April, 2021.
  • Simplification of exploration regime - (I) National Mineral Exploration Trust (NMET) shall be an autonomous body; (ii) Private entities may be notified under Section 4(1) of the MMDR Act for conducting exploration; (iii) Enable funding of eligible private exploration agencies from NMET; (iv) Provision for seamless PL-cum-ML (composite licence).
  • In order to implement the amendments made in the MMDR Amendment Act, 2021 Ministry of Mines has notified the following Rules:
  • The Minerals (Evidence of Mineral Contents) Rules, 2015 amended through the Minerals (Evidence of Mineral Contents) Amendment Rules, 2021 for simplifying the exploration norms prescribed in the rules for certain category of mineral deposits and benchmarking the MEMC Rules with globally accepted classification standards.
  • Relaxation of Exploration Norms- 
  1. ML for limestone, iron ore and bauxite having surficial deposit can be granted at G3 level of exploration.
  2.  Reassessment of resources in respect of expired, terminated, surrendered or lapsed mines on the basis of available reports of exploration before auction.
  3. Auction of composite licence (PL-Cum-ML) at G4 level for all minerals.
  4. Definition of various stages of exploration, etc., exploration norms for different types of deposits and reporting template.

    • Mineral (Auction) Rules, 2015 amended through Mineral (Auction) Third Amendment Rules, 2021.  The highlights of amendments in the Rules are as follows:
    • Definition of Value of Estimated Resources (VER) clarified to enable its calculation in case average sale price of any mineral is not published for any month.
    • To facilitate auction of CL for minerals (other than placer deposits) whose VER cannot be assessed, but have mining potentiality.
    • To provide for sale of 50% of mineral from auctioned captive mines.
    • Cap on Net Worth requirement for ML – Rs. 200 Cr. and for CL – Rs. 100 Cr.
    • Upfront payment – instalments changed from existing 10%, 10% and 80% to 20%, 20% and 60%.
    • Time-lines added for ML for submission of 1st instalment of upfront payment and for issue of LoI by the State Government.
    • Time-lines added for CL for submission of Performance Security - 15 days (extendable by further 15 days), for issue of LoI by the State Government - 15 days and execution of PL deed of CL - 1 year (extendable by further 6 months) from issue of LoI.
    • The MCR, 2016 has been amended through Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 on 2nd November, 2021. The highlights of amendments in the Rules are as follows: 
  1. New rules inserted to provide manner of sale of 50% of mineral produced from the captive leases. With this amendment, the Government has paved the way for releasing of additional minerals in the market by greater utilization of mining capacities of captive mines. The allowance for sale of prescribed quantity of mineral shall also motivate the lessees to enhance the production from the captive mines. Further, payment of additional premium amount, royalty and other statutory payments in respect of the quantity sold shall boost the revenue of the State Governments. 
  1. Provision added to allow disposal of overburden/ waste rock/ mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral. This will enable ease of doing business for the miners. 
  2. Minimum area for grant of mining lease has been revised from 5 ha. to 4 ha. For certain specific deposits, minimum 2 ha. is provided. 
  3. Part surrender of mining lease area allowed in all cases. Presently, part surrender was allowed only in case of non-grant of forest clearance. 
  4. Rules amended to allow transfer of composite licence or mining lease of all types of mine. 
  5. New rules inserted to provide for mutation of ML/ CL in favour legal heirs on death of the lessee or licence. 
  6. Interest on delayed payments revised from existing 24% to 12%. 
  7. Rules regarding period of mining lease granted to Government companies and their payments incorporated in the MCR, 2016.
  8. Penalty provisions in the rules have been rationalized. Previously, the rules provided for penalty of imprisonment up to 2 years or fine up to 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation. Amendment in the rules categorized the violations of the rules under the following major heads: (a) Major Violations: Penalty of imprisonment, fine or both. (b) Minor Violations: Penalty reduced. Penalty of only fine for such violations prescribed. (c) Violation of other rules has been decriminalized. These rules did not cast any significant obligation on the concession holder or any other person. Thus, violation of 49 rules has been decriminalized.  
    • Ministry of Mines has notified the Mineral Conservation and Development (Amendment) Rules, 2021 on 3rd November, 2021 to amend the Mineral Conservation and Development Rules, 2017 [MCDR] to provide rules regarding conservation of minerals, systematic and scientific mining, development of the mineral in the country and for the protection of environment. The highlights of amendments in the Rules are as follows: 

(I) Rules prescribed that that all plans and sections related to mine shall be prepared by combination of Digital Global Positioning System (DGPS) or Total Station or by drone survey in relation to certain or all leases as may be specified by Indian Bureau of Mines (IBM). 

(ii) New Rule inserted to provide for submission of digital images of mining area by lessees and Letter of Intent holders. Lessees having annual excavation plan of 1 million tonne or more or having leased area of 50 hectare or more are required to submit drone survey images of leased area and up to 100 metres outside the lease boundary every year. Other lessees to submit high resolution satellite images. This step will not only improve mine planning practices, security and safety in the mines but also ensure better supervision of mining operations. 

(iii) Requirement of submitting satellite images obtained from CARTOSAT-2 satellite LISS-IV sensor on the scale of cadastral map deleted in view of the insertion of provision for submission of high resolution Georeferenced Ortho-rectified Multispectral satellite and use of drone survey as per Rule 34A. 

(iv) Provision of daily return omitted to reduce compliance burden. Power of taking action against incomplete or wrong or false information in monthly or annual returns given to IBM, in addition to State Govt. 

(v) Allowed engagement of a part-time mining engineer or a part-time geologist for category 'A' mines having leased area below 25 hectares. This will ease compliance burden for small miners. 

(vi) In order to increase employment opportunity, diploma in mining and mine surveying granted by duly recognised institute along with a second class certificate of competency issued by the Director General of Mines Safety is added in qualification for full time Mining Engineer. Also, qualification for part time Mining Engineer added. 

(vii) Provision of forfeiture of financial assurance or performance security of the lease holder added in case of non-submission of final mine closure plan within the period specified. 

(viii) Amount of financial assurance increased to five lakh rupees for Category ‘A’ mines and three lakh rupees for Category ‘B’ mines from existing three and two lakh rupees, respectively. 

    • In addition to the above amendments, the Ministry has notified rescission of two rules, namely, Minerals (Transfer of Mining Leases Granted Otherwise than through Auction for Captive Purpose) Rules, 2016 and Mineral (Mining by Government Company), Rules, 2015. These rules had become obsolete in view of the above amendment in the MMDR Act and the MCR, 2016.
    1. Exploration Initiatives
  1. Geological Survey of India (GSI)
  2. GSI has completed 8,577 sq. km Specialized Thematic Mapping (on 1:25,000 scale) out of 23000 sq. km target during Annual Programme  2021-22 till the end of November 2021.
  1. GSI has completed 77,395.1 sq. km National Geochemical Mapping (on 1:50,000 scale) out of 240,000 sq. km target during Annual Programme 2021-22 till the end of November 2021.
  2. GSI has completed 35,220 sq. km National Geophysical Mapping (on 1:50,000 scale) out of 1,00,000 sq. km target during Annual Programme 2021-22 till the end of November 2021.
  3. GSI has completed preliminary marine mineral investigation for 3485 sq. km in Exclusive Economic Zone (EEZ) out of 4,000 sq. km target during Annual Programme 2021-22 till the end of November 2021.
  4. GSI has been engaged in 6 programmes of National Landslide Susceptibility Mapping (NLSM on 1: 50,000 scale) during 2021-22.  GSI has covered 18,640 sq. km by Landslide Susceptibility Mapping out of 35,147 sq. km target during Annual Programme 2021-22 till the end of November 2021.
  5. As per the dissemination policy 2019 of GSI, all reports of mineral exploration, baseline data generation and fundamental geosciences are made available to all stakeholders through GSI portal.
  6. GSI has taken up about 250 mineral exploration projects during 2021-22.
  7. GSI has handed over 43 (G3/G2) reports to the State Government in 2021. Of these, 14 blocks are of limestone, 4 blocks are of base metal, 4 blocks of bauxite, 3 blocks of gluconate, 6 blocks of manganese, 6 blocks of iron ore and one each of diamond, float iron ore, flux grade dunite (MgO), magnetite, PGE and graphite & vanadium.
  1. The state of Odisha has the largest contribution with 11 blocks followed by Rajasthan (6 blocks) and Jharkhand (6 blocks). The other contributing states are Madhya Pradesh- 4 blocks, Meghalaya- 3 blocks, Chhattisgarh- 3 blocks, Bihar- 3 blocks, Gujarat- 2 blocks, Tamil Nadu 2 blocks. Andhra Pradesh, Assam and Karnataka have contributed one block each.
  1. GSI has also handed over 100 potential G4 stage blocks in phase I for auction as Composite Licence to the State Governments in the month of September, 2021 and 52 potential G4 stage blocks in phase II in the month of November, 2021.


(b) Mineral Exploration Corporation Limited (MECL)

 During the year 2021 (Till Nov-21), MECL has submitted 39 nos. of Geological Reports of different minerals commodities e.g. Coal, Lignite, Copper, Limestone, Iron ore, Manganese, Magnesite etc. and added 10,414.36 million tonnes of resources to National Mineral Inventory out of which 17 Geological Reports have been submitted to NMET.

  1. MoU has been signed with Odisha Mineral Exploration Corporation Limited (OMECL), Bhubaneshwar for carrying out detailed exploration and allied works in the state of Odisha.
  2. MoU signed with Department of Mines & Geology (DMG), Rajasthan and Rajashtan State Mines and Minerals Limited (RSMML) for taking up feasibility study for solution mining of potash and pilot plant construction in Rajasthan.
  3. MECL signed MoU with Central Mine Planning and Design Institute (CMPDIL), Ranchi for detailed Energy & Non-Coal exploration in CMPDIL blocks.
  4. MECL signed MoU with Directorate of Mines & Geology (DGM), Goa to expedite assessment of mineral resources and take-up exploration of mineral acreage for carrying out mineral block for its auction.
  5. MoU signed with Directorate of Geology and Mining (DGM), Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited (MPSMCL) for carrying out exploration and allied works for Mineral Acreages in the state of Madhya Pradesh.
  6. Under modernization program, MECL has taken steps on advent of Technological Innovations and adoption of advanced software and equipment etc. such as DATAMINE Studio-RM, Geovia Minex & Geo SURPAC (Dassault System, France), Arc GIS, ERDAS IMAGINE, Slimhole Geophysical logging system, Core scanner, XRF, ICP MS, ICP OES etc
  7. Under strategic diversification program, to increase sustainability and profitability MECL is diversifying its activities in both areas viz. business level and corporate level diversification. MECL has been engaged as Program Manager for carrying out various activities at BGML including appointment of Consultant for its techno-commercial feasibility studies and future action plan of BGML. In addition, MECL has been engaged by Government of Rajasthan as a Program Manager to carry out feasibility study for solution mining of the Potash. Further MECL is also providing consultancy to State Government for technical support to study the feasibility of mineral block for its auction purpose. MECL has deputed nodal officers for various states and posted its geological officials in the state of Madhya Pradesh, Jharkhand, Rajasthan, Karnataka and Goa.
  8.   MECL is also providing geochemical analysis services as a referee agency to various State Governments, CPSEs and other agencies.
    • Union Minister of Coal, Mines and Parliamentary Affairs, Shri Pralhad Joshi inaugurated the 5th National Conclave on Mines and Minerals-2021 in November and felicitated 149 mines obtaining five-star rating under star rating of Mines for the performance year 2017-18 to 2019-20. The Minister also handed over 52 potential mineral blocks carved out of G4 stage mineral investigations to the State Governments. This was in addition to hundred mineral blocks handed over to different state governments earlier in September this year.



    • A technical session with panel discussions was conducted during the Mines and Minerals Conclave to present and discuss about the recent amendments in Mining Laws for easing the process of auctions of Mineral Blocks and mineral exploration. An online portal of Accreditation Scheme developed by Ministry of Mines through QCI-NABET for Exploration Agencies in Mineral Sector has also been launched during the Conclave.
  1. Indian Bureau of Mines (IBM)

Besides IBM’s core charter of functions, i.e. carrying out various field inspections, Ore Dressing investigations, some of the major achievements are;

  1. .Union Minister of Coal, Mines and Parliamentary Affairs, inaugurated 5th National Conclave on Mines and Minerals-2021 on 23.11.2021 and felicitated 149 mines obtaining five star rating under star rating of Mines for the performance year 2017-18 to 2019-20.
  2. Mining Surveillance System (MSS) is a satellite-based monitoring system which aims to establish a regime of responsive mineral administration by curbing instances of illegal mining activity through automatic remote sensing detection technology. Using the Mining Surveillance System, 52 major mineral triggers have been detected across the country in second phase. Out of which 45 have been verified by the State Governments and in 5 cases unauthorized mining activities have been identified. Similarly, in respect of minor minerals, 130 triggers have been generated, out of which 104 have been verified and in 9 cases unauthorized mining activities have been identified. The training programmes to State Government officers for its adoption of the MSS for minor minerals have also been done.  In the third phase in 2020-21, out of the 119 triggers generated for major minerals across the States, 62 triggers have so far been verified by the State Governments and 9 cases are observed as unauthorized Mining after field verification by respective State Governments. 
  3. Total 164 Officers from various States participated in the training of Mining Surveillance System. 
  4. Under Mining Tenement System, Modules of MTS Project viz. PMKKKY, Registration and Daily Returns were already launched. Daily Return and Monthly Return are live to view and submit the returns. 
  1. During the current year, Average Sale Price (ASP) for Minerals up to September, 2021 and of Metals up to October, 2021 have been hosted on IBM website.
  1. IBM has brought out important publications like Indian Minerals Year Book 2019 (vol. I to III), Half Yearly Bulletin on mineral Information for the period Oct.19 to Mar.20 & April 2020 to September, 2020 issues, Statistical Profiles of Minerals for the Year 2018-19 issue, Indian Mineral Industry at a Glance 2016-17 and 2017-18 issues, Bulletin on Mining Lease and Prospecting Licenses 2019 and Monthly Statistics of Mineral Production (MSMP) up to March 2020 issue to disseminate the technical data for interest of all stakeholders.
  2. As part of the capacity building of human resources, conducted 8 online training courses for IBM employees through VC-NIC wherein a total 292 IBM officials participated.
  1. During 2020-21, the IBM offices observed Swachhata Pakhwada during 16th-30th November 2020 in office premises as well in mining site areas, nearby villages and schools.
  2. Initiatives Towards Self- Reliance in Strategic Minerals. 

Khanij Bidesh India Limited (KABIL) 

Under the aegis of Ministry of Mines, a Joint Venture company namely the Khanij Bidesh India Ltd. (KABIL) of NALCO, HCL & MECL has been established. With the objective to ensure mineral security of the country, KABIL is mandated to identify & acquire overseas mineral assets of critical & strategic minerals so as to ensure supply side assurance of energy minerals – primarily the critical & strategic minerals such as Lithium, Cobalt & others. Based on commissioned study and selection criteria various countries have been shortlisted for exploring the mineral asset acquisition abroad.

Engagement of KABIL is underway with select source countries such as Australia, Argentina, Bolivia and Chile etc. which are endowed with the cited critical & strategic minerals. The primary interface has been the respective Embassies & Missions of India in those countries for sharing of information with respect to prospective mineral acreages primarily with state owned organizations for taking up due diligence and investment decisions. 

It is foreseen that securing supply side assurance of the critical & strategic minerals such as Lithium, Cobalt etc. to start with will offer the intended impetus to the “Atma Nirbhar Bharat” initiative of Government of India and will cater to several sectors such as e-mobility, renewable energy, medicine, aerospace, aviation, etc. 

  1. National Aluminium Company Limited (NALCO)
    • Performance Highlights for FY 2020-21:
    • Despite the adverse conditions prevailing due to Covid pandemic, NALCO’s Net Profit for FY 2020-21 has jumped by 840% to Rs.1299.53 crore compared to Rs.138 crore in FY2019-20.
    • Achieved highest ever Bauxite production (73.65 Lakh tonne) since inception in FY 2020-21.
    • Highest ever export metal sale of 1.92 lakh tonne achieved surpassing the previous best of 1.47 lakh tonne achieved decade back in 2009-10.
    • Mining Lease deed of Utkal-D Coal block executed in March, 2021.
    • Total procurement through GeM portal is Rs. 343.19 Crores in FY 2020-21, against Rs. 8.42 crores achieved in 2019-20. 
    • Against mandated procurement target of 25% from MSEs, NALCO achieved 30.42% of total procurement in FY 2020-21.
    • Performance Highlights for FY 2021-22 (Till Nov’2021)
    • The Company achieved Net Profit of Rs.1, 095 Crore during H1 FY 2021-22 against Rs.124 Crore achieved in corresponding period of previous year. 
    • Highest ever Aluminium cast metal production of 2,26,029 MT since inception surpassing the previous H1 highest of 2,21,208 MT in the FY 2010-11.
    • Lean Slurry ash disposal system of CPP to mines void has been commissioned in July’2021. This facilitates environment friendly ash disposal.
    • NALCO’s Panchpatmali Bauxite Mines was awarded 5 Star Rating by Ministry of Mines for sustainable Mining in Nov’2021.
    • Alumina Refinery bagged the CII EXIM Bank Business Excellence Platinum award & Panchpatmali Bauxite Mines received the award in Gold plus category at CII National Quality Summit.
    • NALCO has been granted mining lease of Utkal-E coal block over an area of 523.73 Ha by the Department of Steel & Mines, Government of Odisha on 12.04.2021.
    • NALCO has bagged the Non-Ferrous Best Performance Award 2020-21 instituted by the Indian Institute of Metals (IIM), under the large scale manufacturing unit category in Nov’21.
    • NALCO’s Panchpatmali Bauxite Mine has been awarded the prestigious Pollution Control Excellence Award 2021 by the State Pollution Control Board, Odisha, for effective pollution control measures and sound environment management practices.


    • Major Activities taken up by the Company to help in fighting the Covid-19 Pandemic:
    • NALCO contributed Rs. 7.6 crore (including one-day salary of employees amounting to Rs.2.6 crore) to PM CARES Fund. The Company also contributed one-day salary of employees amounting to Rs.2.6 crore to CM’s Relief Fund, Odisha. Total contribution toward COVID-19 relief fund is Rs. 10.2 crore.
    • Funded 200 bedded exclusive COVID-19 hospital at Nabarangpur and 70 bedded SLNM College & Hospital at Koraput, Odisha.
    • NALCO in convergence with Govt of Odisha, funded 150 Bedded District Covid Hospital at Angul District, Odisha.
    • Set up two exclusive COVID Care Centres (50 bed each), one each at Damanjodi and Angul and one COVID Care Centre at Bhubaneswar (20 bed).
    • 25,70,000 capacity (dose) Covid vaccine Refrigerated Truck, two Ventilator Ambulance and Digital x-ray machine donated to Govt. of Odisha.
    • NALCO’s contribution to the commemoration of Azadi Ka Amrit Mahotsav.
    • NALCO to support and build 300 smart e-class rooms in Odisha as an academic developmental initiative.
    • NALCO, in association with NALCO Foundation reached out to an Old Age Home at Bhubaneswar and donated electronic utility items like refrigerator & mixer grinder, monthly ration, masks and sanitizers.
    • NALCO is celebrating the Azadi Ka Amrit Mahotsav by organizing a number of activities among the school children.  
  1. Hindustan Copper Limited (HCL)
    • Physical Performance Highlights for FY 2020-21:
    • Total copper metal sales of the company were 32,997 tonne in 2020-21.
    • Financial Performance Highlights for FY 2020-21:
    • During 2020-21, the turnover of the Company was Rs.1760.84 crore as against Rs. 803.17 crore during FY 2019-20 registering an increase of 119%. The Profit/(Loss) After Tax from continuing & discontinuing operation during FY 2020-21 was Rs 109.98 crore.


    • Highlights of other Achievements:
    • HCL being the first non-banking PSU to raise capital of Rs.500 Crore from the market for the ongoing capital expenditure project through QIP (qualified Institutional Placement) route in April 2021.
    • HCL facilitated Govt. of India to disinvest GoI shareholding by around 6.62% through OFS (Offer For Sale) route in Sept’2021.
    • HCL procured 41.12% of total procurement from MSME vendors in FY 2020-21 against the mandatory target of 25%. 
    • Power Purchase agreement (PPA) has been signed with party for installation of 4.5 MWp solar plant at MCP Unit. 
    • The Malanjkhand underground mining project has achieved important milestones i.e interconnection of north and south mines at 240 mRL & 295 mRL. This has created readiness for taking out ore production through decline from underground mines.
    • HCL has signed a long-term sale agreement with a domestic primary copper producer for sale of around 60% of its total quantity of annual copper concentrate production. 
    • Awards & Accolades:
    • DGMS, Ministry of Labour & Employment, GoI, intimated HCL about selection of National Safety Award (Mines) - 2017(Winner) & 2018 (Runner both LIFRM-type-6 category) for Kolihan Mine,
    • National Safety Award (Mines) 2018 (Winner-LIFRM-type-6 category) and 2019 (Runner-LAFP -type-6 category) for Khetri Mine,
    • National Safety Award (Mines)- 2020 (Runner) (LAFP- type -4 category) for Malanjkhand mine,
    • Khetri mine of HCL was adjudged as five star rated mine for the year 2017-18 and the award has been given by Hon’ble Minister of Mines on 23.11.2021 in the 5th National conclave on Mines & minerals at New Delhi.

  Research & Development (R&D) Initiatives 

 Jawaharlal Nehru Aluminium Research Development & Design Centre (JNARDDC)

  1. During 2021 JNARDDC was granted one patent for novel R&D process.  

Patent no. 340231 dated 02.07.2020 (Inventor – Dr Md Najar PA) for “Development of process for selective in-situ dissolution of alumina & silica bearing mineral phases in bauxite at room temperature for geo–analytical application”.  The selective and self-sustained dissolution of alumina (Al2O3) and silica (SiO2) bearing mineral phases in bauxite such as gibbsite and kaolinite at room temperature enable rapid determination of the mineral constituents both at the exploration site as well laboratory with comparable accuracy. The distinguished advantage of the process is its easy flexibility and portability to remote mining sites for quick assessment of bauxite and laterite samples and need of minimum infrastructural support. 

  1. JNARDDC successfully upgraded its NABL accreditation from ISO/IEC 17025:2005 to ISO/IEC 17025:2017 with inclusion of new scope covering all parameters of chemical testing of chromite ore which is expected to enhance the business opportunities.
  2. Setting up of Coal Characterization and Research Laboratory (CCRL) in record time (to test coke/coal samples for various parameters through proximate analysis - fixed carbon, moisture, volatile matter and ash & gross calorific value by prescribed IS/ASTM methods), acquiring NABL accreditation for CCRL (ISO/IEC 17025:2017) and substantial inflow of coal referee samples for analysis which will provide major boost to the earnings of the Centre in the times to come. 
  3. Developing expertise for providing end to end technology solutions (optimized die design, fabricated dies with process parameters by process integration) for small and medium enterprises for manufacturing of critical extrusion profiles. Currently, critical extrusion profiles are developed based on implicit knowledge of shop floor personnel gained on basis of hit and run trials which are not only costly but also time consuming. In order to effectively utilize the extrusion facilities, Centre is focusing on new end user applications such as profiles used in automobiles, building and construction, aerospace so that prototype can be made and demonstrated to end user industries to promote consumption. 
  4. Bureau of Energy Efficiency (BEE), Ministry of Power renewed the nomination of JNARDDC as a sector expert for the aluminium sector under the PAT (Perform, Achieve & Trade) Scheme in National Mission for Enhanced Energy Efficiency (NMEEE) under Climate Change Project
  5. Nomination and authorization of JNARDDC by Ministry of Mines (MoM), Govt of India to carry out the functions earmarked for Metal Recycling Authority as stipulated in the “National Non-Ferrous Metal Scrap Recycling Framework 2020” (excluding statutory functions) till a regular authority is notified. JNARDDC will work under the supervision of Ministry of Mines and closely co-ordinate with MoEF & CC, CPCB/SPCB’s, Dept. of Consumer Affairs, Bureau of Indian Standards and other Stakeholders for performing various activities related to Non-Ferrous Metal (namely Al, Cu, Zn and Pb) Recycling which ensures proper guidelines for scrap handling, processing, quality, certification and environmental norms etc. A platform will be devised to bring all the stakeholders including recyclers, OEMs, scrap traders, generators etc. for reporting or registration in an organized manner under one umbrella. The Centre has initiated the activities to ensure that the desired frame work is in place and implemented.


  1. National Institute of Rock Mechanics (NIRM)

 NIRM Established as an R&D support and expertise to Mining Sector. NIRM deals with field and laboratory investigations, basic and applied research and solving complex problems in almost entire spectrum of Rock Mechanics and Rock Engineering related to Mining and Civil engineering activities. 

  1. During the period affected by Pandemic due to covid-19 NIRM had taken all efforts to complete its scientific investigations and the scientific initiatives were involved in major mines (coal and metal). NIRM through advanced geological, in-situ stress measurements, numerical modelling, excavation design, engineering geophysical investigations, advanced monitoring of underground structures and stability of excavations have provided tailor made scientific services that resulted in significant advantages in terms of time, money, safety and productivity in the civil and mining industries.
  2. Engineering geophysical investigations in the old, abandoned mines areas (8 locations) in the state of Madhya Pradesh have led to mapping the old remnant huge cavity pockets that were hazardous to surface buildings including residential colonies. This prevented untoward safety incidents and environmental hazards associated with such abandoned mines. 
  3. The in-situ stress measurements of NIRM have vital for design and excavation of underground caverns of defence sector in Visakhapatnam. NIRM is continuing to provide its expertise for the classification and identification of suitable rock for armour rocks for ports and naval base near Visakhapatnam.
  4. The 3D numerical model analysis of underground excavations in Arun 3 HEP, Nepal and Punatsangchu HEP in Bhutan identified the zones of rockmass for critical displacements and behavioural trend for more efficient design for long term stability of the underground structures.  
  5. For the new and upcoming units of Kudankulam nuclear power plant (KKNPP), Tamil Nadu (2 x 1000 MW) near operating units 1 and 2, NIRM technical guidance led to completion of rock excavation and about 0.14 lakhs cubic meter of hard rock was excavated safely.
  1. Key scientific initiatives for various upcoming hydel and mining projects within the country and abroad are taken up to continue the scientific contribution for civil, mining and infrastructure sectors.
  2. NIRM made various scientific publications in national and international journals. A large participation of NIRM scientists is scheduled for the international conference at Malaysia - on Geotechnical challenges in Mining, Tunneling & Underground structures.