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Financial Analysis & Comparison Of
Submitted in partial fulfillment of the requirement for the award
of degree of
Master of Business Administration
Gautam Buddh Technical University !uc"no#
Su$mitted $y
Roll no& '('()*++(,
MBA -Batch (+'(.')/ 0
Under The Guidance O1
Accounts O11icer
I owe a great many thanks to a great many people who helped and supported me
during the writing of this project. My deepest thanks to Mrs2 Poo>a Sharma the
Guide of the project for guiding and correcting various documents of mine with
attention and care. She had taken pain to go through the project and make necessary
correction as and when needed. I express my thanks to the rincipal of my college
Pro12 A?A@ PRA%AS5 Sir for extending his support. My deep sense of gratitude to
Mr2 3E4EN3RA %UMAR S5U%!A! "ccount #fficer $%&'(") "*M%&'
"&+ "$$#,&' +I-ISI#& #bra 'hermal ower Station ."/ for his able support and
I am specially thanking full for Mr2 S2P2 SAAENA Sir 0+*. $1I%2 "$$#,&'S
#22I$%(! $"+ #3(" ."/'S4 for his grateful support. 'hanks and appreciation
to the helpful people $"+ #3(" ."/'S! for their support. I would also thank my
Institution and my faculty members without whom this project would have been a
distant reality. I also extend my heartfelt thanks to my family and well wishers.
"&5I' MI''")
III Semester
I "nkit Mittal! a student of Master of 3usiness "dministration 0M3"4 rogramme
hereby declare that the project work entitled 2inancial "nalysis < $omparison #f
,(-,&) submitted to the from the Institute of $o= operative < $orporate
Management (esearch and 'raining! )ucknow! is a record of an original work done
by me under the guidance of Mr. +%-%&+(" 5,M"( S1,5)" "&+ Mrs. ooja
Sharma and the same has never been submitted by the undersigned either in part or in
full to any other ,niversity or Institute or published earlier.
'his information is true to the best of my knowledge and belief.
"&5I' MI''")
'2 6omBany Bro1ile
(2 O$>ective o1 study2
02 Introduction o1 toBic2
)2 Research methodolo=y
,2 3ata Analysis and interBretation2
;2 Results and Findin=s
*2 Su==estion: Recommendations
C2 6onclusions
D2 !imitation o1 study2
'+2 ABBendiE: AnneEure
''2 Bi$lio=raBhy
'he electricity sector in India had an installed capacity of 77;.6>> G? as of May
7:6>! the world@s fifth largest. $aptive power plants generate an additional >8.888
G?. &on (enewable ower lants constitute A9.;;B of the installed capacity! and
(enewable ower lants constitute the remaining 67.8;B of total installed $apacity.
India generated A;; 3, 0A;; ::: M, i.e. A;; 'wo4 electricity during 7:66C67 fiscal.
In terms of fuel! coal=fired plants account for ;9B of India@s installed electricity
capacity! compared to South "frica@s D7BE $hina@s 99BE and "ustralia@s 9FB. "fter
coal! renewal hydropower accounts for 6DB! renewable energy for 67B and natural
gas for about DB.
In +ecember 7:66! over >:: million Indian citiGens had no access to electricity. #ver
one third of India@s rural population lacked electricity! as did FB of the urban
population. #f those who did have access to electricity in India! the supply was
intermittent and unreliable. In 7:6:! blackouts and power shedding interrupted
irrigation and manufacturing across the country.
'he per capita average annual domestic electricity consumption in India in 7::D was
DF k?h in rural areas and 7AA k?h in urban areas for those with access to electricity!
in contrast to the worldwide per capita annual average of 7F:: k?h and F7:: k?h in
the %uropean ,nion. India@s total domestic! agricultural and industrial per capita
energy consumption estimates vary depending on the source. 'wo sources place it
between 8:: to 9:: k?h in 7::AC7::D. "s of Hanuary 7:67! one report found the per
capita total consumption in India to be 99A k?h.
India currently suffers from a major shortage of electricity generation capacity! even
though it is the world@s fourth largest energy consumer after ,nited States! $hina and
(ussia. 'he International %nergy "gency estimates India needs an investment of at
least I6>; billion to provide universal access of electricity to its population.
'he International %nergy "gency estimates India will add between F:: G? to 67::
G? of additional new power generation capacity before 7:;:. 'his added new
capacity is equivalent to the 98: G? of total power generation capacity of %uropean
,nion 0%,=794 in 7::;. 'he technologies and fuel sources India adopts! as it adds this
electricity generation capacity! may make significant impact to global resource usage
and environmental issues.
India@s electricity sector is amongst the world@s most active players in renewable
energy utiliGation! especially wind energy. "s of +ecember 7:66! India had an
installed capacity of about 7A G? of renewal technologies=based electricity!
exceeding the total installed electricity capacity in "ustria by all technologies.
India@s network losses exceeded >7B in 7:6: including non=technical losses!
compared to world average of less than 6;B. 3oth technical and non=technical factors
contribute to these losses! but quantifying their proportions is difficult. 3ut the
Government pegs the national '<+ losses at around 78B for the year 7:66 < has set
a target of reducing it to 69.6B by 7:69 < to 68.6B by 7:77. Some experts estimate
that technical losses are about 6;B to 7:B! a high proportion of nontechnical losses
are caused by illegal tapping of lines! but faulty electric meters that underestimate
actual consumption also contribute to reduce payment collection. " case study in
5erala estimated that replacing faulty meters could reduce distribution losses from
>8B to 7DB.
5ey implementation challenges for India@s electricity sector include new project
management and execution! ensuring availability of fuel quantities and qualities! lack
of initiative to develop large coal and natural gas resources present in India! land
acquisition! environmental clearances at state and central government level! and
training of skilled manpower to prevent talent shortages for operating latest
technology plants.
'he first demonstration of electric light in $alcutta was conducted on 78 Huly 6A9D by
? 2leury < $o. #n 9 Hanuary 6AD9! 5ilburn < $o secured the $alcutta electric
lighting license as agents of the Indian %lectric $o! which was registered in )ondon
on 6; Hanuary 6AD9. " month later! the company was renamed the $alcutta %lectric
Supply $orporation. 'he control of the company was transferred from )ondon to
$alcutta only in 6D9:. %nthused by the success of electricity in $alcutta! power was
thereafter introduced in 3ombay. Mumbai saw electric lighting demonstration for the
first time in 6AA7 at $rawford Market! and 3ombay %lectric Supply < 'ramways
$ompany 03.%.S.'.4 set up a generating station in 6D:; to provide electricity for the
tramway. 'he first hydroelectric installation in India was installed near a tea estate at
Sidrapong for the +arjeeling Municipality in 6AD9. 'he first electric train ran between
3ombay@s -ictoria 'erminus and 5urla along the 1arbour )ine! in 6D7;. In 6D>6!
electrification of the meter gauge track between Madras 3each and 'ambaram was
#f the 6.8 billion people of the world who have no access to electricity in the world!
India accounts for over >:: million.
Some A:: million Indians use traditional fuels C fuel wood! agricultural waste and
biomass cakes C for cooking and general heating needs. 'hese traditional fuels are
burnt in cook stoves! known as chulah or chulha in some parts of India. 'raditional
fuel is inefficient source of energy! it/s burning releases high levels of smoke! M6:
particulate matter! &#J! S#J! "1s! polyaromatics! formaldehyde! carbon
monoxide and other air pollutants. Some reports! including one by the ?orld 1ealth
#rganiGation! claim >::!::: to 8::!::: people in India die of indoor air pollution and
carbon monoxide poisoning every year because of biomass burning and use of
chullahs. 'raditional fuel burning in conventional cook stoves releases unnecessarily
large amounts of pollutants! between ; to 6; times higher than industrial combustion
of coal! thereby affecting outdoor air quality! haGe and smog! chronic health problems!
damage to forests! ecosystems and global climate. 3urning of biomass and firewood
will not stop! these reports claim! unless electricity or clean burning fuel and
combustion technologies become reliably available and widely adopted in rural and
urban India. 'he growth of electricity sector in India may help find a sustainable
alternative to traditional fuel burning.
In addition to air pollution problems! a 7::9 study finds that discharge of untreated
sewage is single most important cause for pollution of surface and ground water in
India. 'here is a large gap between generation and treatment of domestic wastewater
in India. 'he problem is not only that India lacks sufficient treatment capacity but also
that the sewage treatment plants that exist do not operate and are not maintained.
Majority of the government=owned sewage treatment plants remain closed most of the
time in part because of the lack of reliable electricity supply to operate the plants. 'he
wastewater generated in these areas normally percolates in the soil or evaporates. 'he
uncollected wastes accumulate in the urban areas because unhygienic conditions!
release heavy metals and pollutants that leaches to surface and groundwater. "lmost
all rivers! lakes and water bodies are severely polluted in India. ?ater pollution also
adversely impacts river! wetland and ocean life. (eliable generation and supply of
electricity is essential for addressing India@s water pollution and associated
environmental issues.
#ther drivers for India@s electricity sector are its rapidly growing economy! rising
exports! improving infrastructure and increasing household incomes.
3emand trends
"s in previous years! during the year 7:6:C66! demand for electricity in India far
outstripped availability! both in terms of base load energy and peak availability. 3ase
load requirement was AF6!;D6 0M,4 against availability of 9AA!>;; M,! an A.;B
deficit. +uring peak loads! the demand was for 677 G? against availability of 66:
G?! a D.AB shortfall.
In a May 7:66 report! India@s $entral %lectricity "uthority anticipated! for 7:66C67=
year! a base load energy deficit and peaking shortage to be 6:.>B and 67.DB
respectively. 'he peaking shortage would prevail in all regions of the country! varying
from ;.DB in the &orth=%astern region to 68.;B in the Southern (egion. India also
expects all regions to face energy shortage varying from :.>B in the &orth=%astern
region to 66.:B in the ?estern region. India@s $entral %lectricity "uthority expects a
surplus output in some of the states of &orthern India! those with predominantly
hydropower capacity! but only during the monsoon months. In these states! shortage
conditions would prevail during winter season. "ccording to this report! the five states
with largest power demand and availability! as of May 7:66! were Maharashtra!
"ndhra radesh! 'amil &adu! ,ttar radesh and Gujarat.
In late 7:66 newspaper articles! Gujarat was declared a power surplus state! with
about 7C> G? more power available than its internal demand. 'he state was
expecting more capacity to become available. It was expecting to find customers! sell
excess capacity to meet power demand in other states of India! thereby generate
revenues for the state.
+espite an ambitious rural electrification programme! some 8:: million Indians lose
electricity access during blackouts. ?hile A:B of Indian villages have at least an
electricity line! just ;7.;B of rural households have access to electricity. In urban
areas! the access to electricity is D>.6B in 7::A. 'he overall electrification rate in
India is F8.;B while >;.;B of the population still lives without access to electricity.
"ccording to a sample of D9!AA7 households in 7::7! electricity was the main source
of lighting for ;>B of rural households compared to >FB in 6DD>.
'he 69th electric power survey of India report claimsK
#ver 7:6:C66! India@s industrial demand accounted for >;B of electrical
power requirement! domestic household use accounted for 7AB! agriculture
76B! commercial DB! public lighting and other miscellaneous applications
accounted for the rest.
'he electrical energy demand for 7:6FC69 is expected to be at least 6>D7 'era
?att 1ours! with a peak electric demand of 76A G?.
'he electrical energy demand for 7:76C77 is expected to be at least 6D6; 'era
?att 1ours! with a peak electric demand of 7DA G?.
If current average transmission and distribution average losses remain same 0>7B4!
India needs to add about 6>; G? of power generation capacity! before 7:69! to
satisfy the projected demand after losses.
Mc5insey claims that India@s demand for electricity may cross >:: G?! earlier than
most estimates. 'o explain their estimates! they point to four reasonsK
India@s manufacturing sector is likely to grow faster than in the past
+omestic demand will increase more rapidly as the quality of life for more
Indians improve
"bout 67;!::: villages are likely to get connected to India@s electricity grid
$urrently blackouts and load shedding artificially suppresses demandE this
demand will be sought as revenue potential by power distribution companies
" demand of >::G? will require about 8:: G? of installed capacity! Mc5insey
notes. 'he extra capacity is necessary to account for plant availability! infrastructure
maintenance! spinning reserve and losses.
In 7:6:! electricity losses in India during transmission and distribution were about
78B! while losses because of consumer theft or billing deficiencies added another 6:C
"ccording to two studies published in 7::8! theft of electricity in India amounted to a
nationwide loss of I8.; billion. 'his led several states of India to enact and implement
regulatory and institutional frameworkE develop a new industry and market structureE
and privatiGe distribution. 'he state of "ndhra radesh! for example! enacted an
electricity reform lawE unbundled the utility into one generation! one transmission!
and four distribution and supply companiesE and established an independent
regulatory commission responsible for licensing! setting tariffs! and promoting
efficiency and competition. Some state governments amended the Indian %lectricity
"ct of 6D6: to make electricity theft a cogniGable offence and impose stringent
penalties. " separate law! unprecedented in India! provided for mandatory
imprisonment and penalties for offenders! allowed constitution of special courts and
tribunals for speedy trial! and recogniGed collusion by utility staff as a criminal
offence. 'he state government made advance preparations and constituted special
courts and appellate tribunals as soon as the new law came into force. 1igh quality
metering and enhanced audit information flow was implemented. Such campaigns
have made a big difference in the Indian utilities/ bottom line. Monthly billing has
increased substantially! and the collection rate reached more than DAB. 'ransmission
and distribution losses were reduced by AB.
ower cuts are common throughout India and the consequent failure to satisfy the
demand for electricity has adversely effected India@s economic growth.
Electricity 6onsumBtion
'he er capita $onsumption 0k?h4 in 7::DC6: was as followsK
Per caBita
Goa (++)2**
Puducherry 'C;)2,
Pun>a$ ';;02+'
Gu>arat ',,C
5aryana ')D'20*
3elhi '))*2*(
6handi=arh '(0C2,'
Tamil Nadu '('+2C'
5imachal Pradesh ''))2D)
Andhra Pradesh '+'02*)
?ammu 9 %ashmir D;C2)*
Ra>asthan C''2'(
Uttar Pradesh 0C;2D0
Uttara"hand D0+2)'
Madhya Pradesh ;'C2'
Maharashtra '+,)2'
%arnata"a C,,
%erala ,0;2*C
!a"shad#eeB )(C2C'
Bihar ''*2)C
?har"hand *,+2);
Orissa C0*2,,
<est Ben=al ,',2+C
Andaman and Nico$ar
Islands ,+;2'0
Si""im C),2)
Assam (+D2(
ManiBur (+*2',
Me=halaya ;'020;
Na=aland ()(20D
TriBura (,02*C
Arunachal Pradesh ,+02(*
MiForam )(D20'
Total )0;*;2*0
"s many as 6A power plants in the country are faced with critical level of coal
shortage! according to minister of State for ower! 5 $ -enugopal.
#f the AD thermal power projects being monitored! >8 had fuel 0coal4 stock less than
seven days and 7; of these had less than four days stock! he said while speaking in the
(ajya Sabha 0the upper house of arliament4.
L&one of the power utilities in the country has reported any of their thermal power
stations in stuck for want of coal although! inadequate availability of coal vis=a=vis
requirement has affected electricity generation in some of the power plants!L he said.
ower utilities! he said! have reported a generation loss of A.9 billion units in 7:66=67
0up to 2ebruary! 7:674 due to shortage of coal.
)isting steps being taken by the government to mitigate shortage of coal for thermal
power plants in the country! he said $oal India is being asked to enhance coal
production while power utilities have been advised to import coal to bridge domestic
supply deficit.
"s many as 66 plants of state=owned &'$ lost 9.A billion units because of shortage
of coal during current fiscal. #ther utilities that lost on generation of electricity
included ones in Madhya radesh! Maharashtra and "ndhra radesh! he added.
3S% ower index fell 7.7 per cent while 3S% Sensex fell over 6 per cent.
'he budget announced cuts in import duties on coal.
'he basic custom duty on steam coal was cut to Gero from ; per cent with
countervailing duty reduced to 6 per cent from ; per cent for fiscal 7:67=6> or 7:6>=
"nalysts say that the effective reduction in import coal cost is close to D per cent. In
7:67=6>! India is expected to import steam coal of about F: million metric tonne.
ower development in India was first started in 6AD9 in +arjeeling! followed by
commissioning of a hydropower station at Sivasamudram in 5arnataka during 6D:7.
India@s electricity generation capacity additions from 6D;: to 6DA; were very low
when compared to developed nations. Since 6DD:! India has been one of the fastest
growing markets for new electricity generation capacity.
'he country@s annual electricity generation capacity has increased in last 7: years by
about 6>: G?! from about FF G? in 6DD6to over 6:: G? in 7::6! to over 6DD G?
in 7:67. India@s ower 2inance $orporation )imited projects that current and
approved electricity capacity addition projects in India are expected to add about 6::
G? of installed capacity between 7:67 and 7:69. 'his growth makes India one the
fastest growing markets for electricity infrastructure equipment. India@s installed
capacity growth rates are still less than those achieved by $hina! and short of capacity
needed to ensure universal availability of electricity throughout India by 7:69.
State=owned and privately owned companies are significant players in India@s
electricity sector! with the private sector growing at a faster rate. India@s central
government and state governments jointly regulate electricity sector in India.
"s of "ugust 7:66! the states and union territories of India with power surplus were
1imachal radesh! Sikkim! 'ripura! Gujarat! +elhi and +adra and &agar 1aveli.
Major economic and social drivers for India@s push for electricity generation include
India@s goal to provide universal access! the need to replace current highly polluting
energy sources in use in India with cleaner energy sources! a rapidly growing
economy! increasing household incomes! limited domestic reserves of fossil fuels and
the adverse impact on the environment of rapid development in urban and regional
'he table below presents the electricity generation capacity! as well as availability to
India@s end user and their demand. 'he difference between installed capacity and
availability is the transmission! distribution and consumer losses. 'he gap between
availability and demand is the shortage India is suffering. 'his shortage in supply
ignores the effects of waiting list of users in rural! urban and industrial customersE it
also ignores the demand gap from India@s unreliable electricity supply.
"ccording to India@s Ministry of ower! about 68.6 G? of new thermal power plants
under construction are expected to be put in use by +ecember 7:67.
In 7:6:! the five largest power companies in India! by installed capacity! in
decreasing order! were the state=owned &'$! state=owned &1$! followed by three
privately owned companiesK 'ata ower! (eliance ower and "dani ower.
Thermal Bo#er
'hermal power plants convert energy rich fuel into electricity and heat. ossible fuels
include coal! natural gas! petroleum products! agricultural waste and domestic trash M
waste. #ther sources of fuel include landfill gas and biogases. In some plants! renewal
fuels such as biogas are co=fired with coal.
$oal and lignite accounted for about ;9B of India@s installed capacity. 1owever! since
wind energy depends on wind speed! and hydropower energy on water levels! thermal
power plants account for over F;B of India@s generated electricity. India@s electricity
sector consumes about A:B of the coal produced in the country.
India expects that its projected rapid growth in electricity generation over the next
couple of decades is expected to be largely met by thermal power plants.
Fuel constraints
" large part of Indian coal reserve is similar to Gondwana coal. It is of low calorific
value and high ash content. 'he iron content is low in India@s coal! and toxic trace
element concentrations are negligible. 'he natural fuel value of Indian coal is poor.
#n average! the Indian power plants using India@s coal supply consume about :.9 kg
of coal to generate a k?h! whereas ,nited States thermal power plants consume
about :.8; kg of coal per k?h. 'his is because of the difference in the quality of the
coal! as measured by the Gross $alorific -alue 0G$-4. #n average! Indian coal has a
G$- of about 8;:: 5calMkg! whereas the quality elsewhere in the world is much
betterE for example! in "ustralia! the G$- is F;:: 5calMkg approximately.
'he high ash content in India@s coal affects the thermal power plant@s potential
emissions. 'herefore! India@s Ministry of %nvironment < 2orests has mandated the
use of beneficiated coals whose ash content has been reduced to >8B 0or lower4 in
power plants in urban! ecologically sensitive and other critically polluted areas! and
ecologically sensitive areas. $oal benefaction industry has rapidly grown in India!
with current capacity topping D: M'.
'hermal power plants can deploy a wide range of technologies. Some of the major
technologies includeK
Steam cycle facilities 0most commonly used for large utilities4E
Gas turbines 0commonly used for moderate siGed peaking facilities4E
$ogeneration and combined cycle facility 0the combination of gas turbines or
internal combustion engines with heat recovery systems4E and
Internal combustion engines 0commonly used for small remote sites or stand=
by power generation4.
India has an extensive review process! one that includes environment impact
assessment! prior to a thermal power plant being approved for construction and
commissioning. 'he Ministry of %nvironment and 2orests has published a technical
guidance manual to help project proposers and to prevent environmental pollution in
India from thermal power plants.
Installed thermal Bo#er caBacity
'he installed capacity of 'hermal ower in India! as of >6 #ctober 7:67! was
68:7:F.6A M? which is FF.DD of total installed capacity.
$urrent installed base of $oal 3ased 'hermal ower is 67:!6:>.>A M? which
comes to ;9.>AB of total installed base.
$urrent installed base of Gas 3ased 'hermal ower is 6A!D:>.:; M? which is
D.:>B of total installed capacity.
$urrent installed base of #il 3ased 'hermal ower is 6!6DD.9; M? which is
:.;9B of total installed capacity.
'he state of Maharashtra is the largest producer of thermal power in the country.
'his is a list of states and territories of India by installed capacity of power utilities
with electricity generation mode break=up as of >:=:F=7:67 and >6=:6=7:6> with
figures in millions of watts -Me=a#atts/2
6aBacity Total Thermal
G India 7:;>8:.7F 6>F8>F.6A
' Maharashtra 7A>6:.A> 7:>;8.97
( Gu>arat 7>AA9.;8 6AA86.>7
0 Tamil Nadu 6A>A7.6> A769.>>
) Andhra Pradesh 6FA69.6> 66996.:A
, Uttar Pradesh 6>FA7.DD 6:A77.A9
; %arnata"a 6>8F;.88 F>;;.F;
* Ra>asthan 6:789.8A ;999.6>
C Madhya Pradesh D:A;.>F ;6:F.6;
D <est Ben=al A;:9.7D 977D.;8
'+ 5aryana 9;9>.7; ;DA9.76
'' Pun>a$ 9668.DF >;>A.8F
'( 3elhi Territory FD>7.6; F67;.87
'0 Odisha F;DF.>> 8>>7.6
') 6hhattis=arh ;F8D.66 ;7:9.88
3amodar 4alley
6orBoration ;7AA.AF ;:D;.F
'; %erala >A79.9> 6FA9.D8
'* 5imachal Pradesh >968.6 6D9.69
'C ?har"hand >:8D.AF 7A7A.AA
'D Uttara"hand 7;;F.;F >;:.7>
(+ ?ammu and %ashmir 7>;F.6; F:D.;D
(' Bihar 6A>>.D> 6F78.9
(( Assam 6:7:.:8 ;;D.76
(0 Goa 86A.>7 >F7.89
() Me=halaya >9>.F7 7A.:6
(, Puducherry Territory 79D.FF 7F:.>;
(; TriBura 7F;.:9 6AF.FD
(* Si""im 7:F.8A 9D.6
(C Arunachal Pradesh 76>.9F >F.D>
(D ManiBur 6;9.A 96.>9
0+ MiForam 6>A.D7 FA.68
0' Na=aland 6:>.6A 76.6D
0( N!6 6::.69 6::.69
00 6handi=arh Territory 6:;.96 8;.6>
3adra and Na=ar
5aveli Territory 9;.>A FF.D7
3aman and 3iu
Territory 88.D >9.;7
Andaman and Nico$ar
Islands Territory F;.8 F:.:;
Territory 6:.97 D.D9
4arious Thermal Po#er Plants located in various Barts o1 IN3IA
Name OBerator !ocation State Units
Ra>=hat Po#er
Station IPG6! (ajghat +elhi 7 J F9.; 6>;
PaniBat Thermal
Po#er Station I 5PG6! "ssam 1aryana 8 x 66: 88:
PaniBat Thermal
Po#er Station II 5PG6! "ssam 1aryana
7 x 76:! 7
x 7;: D7:
Farida$ad Thermal
Po#er Station 5PG6! 2aridabad 1aryana 6 x ;; ;;
Ra>iv Gandhi
Thermal Po#er
Station 5PG6! 5hedar 1aryana 6 x F:: F::
Guru Nana" dev TP PSP6! 3athinda unjab 8 x 66: 88:
Guru 5ar=o$ind TP PSP6!
Mohabbat unjab
7 x 76:! 7
x 7;: D7:
Guru Go$ind Sin=h
SuBer Thermal
Po#er Plant PSP6! Ghanauli unjab F x 76: 67F:
Surat=arh SuBer
Thermal Po#er
Plant R4UN! Suratgarh (ajasthan F x 7;: 6;::
%ota SuBer
Thermal Po#er
Plant R4UN! 5ota (ajasthan
7 x 66:! >
x 76:! 7 x
6D; 678:
Giral !i=nite Po#er
Plant R4UN! 'humbli (ajasthan 7 x 67; 7;:
6hha$ra Thermal
Po#er Plant R4UN! Mothipura (ajasthan 7 x 7;: ;::
O$ra Thermal
Po#er Station UPR4UN! #bra
6 x 8:! > x
D8! ; x 7:: 6!>77.::
AnBara Thermal
Po#er Station UPR4UN! "npara
> x 76:! 7
x ;:: 6F>:
Pan"i Thermal
Po#er Station UPR4UN! anki
radesh 7 x 6:; 76:
Parichha Thermal
Po#er Station UPR4UN! arichha
7 x 66:! 7
x 76: F8:
Thermal Po#er
Station UPR4UN! 1arduaganj
6 x ;;! 6 x
F:! 6 x 6:; 77:
BadarBur Thermal
Po#er Station NTP6 3adarpur &$' +elhi
> x D;! 7 x
76: 9:;
Sin=rauli SuBer
Thermal Po#er
Station NTP6 Shaktinagar
; x 7::! 7
x ;::! 7:::
Barsin=sar Thermal
Po#er Station N!6 3arsingsar (ajasthan 7 x 67; 7;:
Rihand Thermal
Po#er Station NTP6
radesh 8 x ;:: 7:::
NTP6 3adri NTP6 -idyutnagar
8 x 76:! 7
x 8D: 6A7:
Fero> Gandhi
Unchahar Thermal
Po#er Plant NTP6 ,nchahar
radesh ; x 76: 6:;:
Tanda Thermal
Po#er Plant NTP6 -idyutnagar
radesh 8 x 66: 88:
Ra> #est !i=nite
Po#er Plant ?S< 3armer (ajasthan A x 6>; 6>;
4S !i=nite Po#er
Plant %S% Gurha (ajasthan 6 x 67; 67;
Rosa Thermal
Po#er Plant Reliance (osa
radesh 8 x >:: 67::
U"ai Thermal
Po#er Station GSE6! ,kai dam Gujarat
7 x 67:! 7
x 7::! 6 x
76: A;:
Thermal Po#er
Station GSE6! Gandhinagar Gujarat
7 x 67:! >
x 76: A9:
Thermal Po#er
Station GSE6! ?anakbori Gujarat 9 x 76: 689:
Si""a Thermal
Po#er Station GSE6! Hamnagar Gujarat 7 x 67: 78:
3huvaran Thermal
Po#er Station GSE6! 5hambhat Gujarat 7 x 66: 77:
%utch Thermal
Po#er Station GSE6! anandhro Gujarat
7 x 9:! 7 x
9; 7D:
Surat Thermal
Po#er Station GIP6! &ani &aroli Gujarat 8 x 67; ;::
A"rimota Thermal
Po#er Station GM36 $hher &ani Gujarat 7 x 67; 7;:
SatBura Thermal
Po#er Station MPPG6! Sarni
; x F7.;! 6
x 7::! > x
76: 6687.;
San>ay Gandhi
Thermal Po#er
Station MPPG6! 3irsinghpur
8 x 76:! 6
x ;:: 6>8:
Thermal Po#er
Station MPPG6! $hachai
7 x 67:! 6
x 76: 8;:
Bha#nendra Sin=h
3eo Po#er Plant 6SPG6! $hattisgarh
8 x ;:! 7 x
67: 88:
3r Shyama Prasad
Mu"har>ee Thermal
Po#er Station 6SPG6! $hattisgarh 7 x 7;: ;::
5asdeo Thermal
Po#er Station 6SPG6! $hattisgarh 8 x 76: A8:
%oradi Thermal
Po#er Station MA5AGEN6O 5oradi Maharastra
6 x 7::! 7
x 76: F7:
Nashi" Thermal
Po#er Station MA5AGEN6O &ashik Maharastra > x 76: F>:
Bhusa#al Thermal
Po#er Station MA5AGEN6O +eepnagar Maharastra 7 x 76: 87:
Paras Thermal
Po#er Station MA5AGEN6O -idyutnagar Maharastra 7 x 7;: ;::
Parli Thermal
Po#er Station MA5AGEN6O
-aijnath Maharastra
> x 76:! 7
x 7;: 66>:
Thermal Po#er
Station MA5AGEN6O 5aparkheda Maharastra
8 x 76:! 6
x ;:: 6>8:
6handraBur SuBer
Thermal Po#er
Station MA5AGEN6O ,rjanagar Maharastra
8 x 76:! >
x ;:: 7>8:
4indhyachal SuBer
Thermal Po#er
Station NTP6
F x 76:! 8
x ;::! 6 x
;:: >9F:
%or$a SuBer
Thermal Po#er
Plant NTP6 Hamani alli $hattisgarh
> x 7::! 8
x ;:: 7F::
SiBat Thermal
Po#er Plant NTP6 Sipat $hattisgarh
7 x ;::!7 x
FF: 7>7:
Bhilai EEBansion
Po#er Plant NTP6.SAI!-?4/ 3hilai $hattisgarh 7 x 7;: ;::
Sa$armati Thermal
Po#er Station Torrent Po#er "hmedabad Gujarat
6 x F:! 6 x
67:! 7 x
66: 8::
Mundra Thermal
Po#er Station Adani Po#er Mundra Gujarat
8 x >>:! ;
J FF: 8F7:
Tirora Thermal
Po#er Station Adani Po#er 'irora
a ; J FF: >>::
Mundra Ultra Me=a
Po#er Pro>ect Tata Po#er Mundra Gujarat ; J A:: 8:::
?indal Me=ha Po#er
Plant ?indal 'amnar $hattisgarh 8 x 7;: 6:::
!anco Amar"anta"
Po#er Plant !anco athadi $hattisgarh 7 x >:: F::
Trom$ay Thermal
Po#er Station Tata 'rombay Maharastra
6 x 6;:! 7
x ;::! 6 x
7;: 68::
3ahanu Thermal
Po#er Station
Reliance Ener=y
!imited +ahanu Maharastra 7 x 7;: ;::
<ardha <arora
Po#er Station %S% ?arora Maharastra 6 x 6>; 6>;
Amravati Thermal
Po#er Plant IN3IABU!!S
a 6: J 79: 79::
Rama=undam B
Thermal Po#er APGEN6O
radesh 6 x F7.; F7.;
Thermal Po#er
Station APGEN6O aloncha
8 x F:! 8 x
67:! 7 x
7;:! 6 x
;:: 697:
3r Narla Tatarao
F x 76:! 6
x ;:: 69F:
Thermal Po#er
Station APGEN6O $uddapah
radesh 8 x 76: A8:
%a"atiya Thermal
Po#er Station APGEN6O $helpur
radesh 6 x ;:: ;::
Raichur Thermal
Po#er Station %P6! (aichur 5arnataka
9 x 76:! 6
x 7;: 697:
Bellary Thermal
Po#er station %P6! 5udatini 5arnataka 6 x ;:: ;::
North 6hennai
Thermal Po#er
Station TNEB "thipattu
&adu > x 76: F>:
Ennore Thermal
Po#er Station TNEB %nnore
7 x F:! > x
66: 8;:
Mettur Thermal
Po#er Station TNEB Metturdam
&adu 8 x 76: A8:
Tuticorin Thermal
Po#er Station TNEB 'uticorin
&adu ; x 76: 6:;:
Rama=undam NTP6 Hyothi &agar
> x 7::! 8
x ;:: 7F::
Simhadri SuBer
Thermal Po#er
Plant NTP6 Simhadri
radesh 8 x ;:: 7:::
Neyveli Thermal
Po#er Station N!6 &eyveli
F x ;:! > x
6::! 7 x
76: 6:7:
Neyveli Thermal
Po#er Station N!6 &eyveli
&adu 9 x 76: 689:
?S< E!.SBU.I
Po#er Plant ?S< -ijayanagar 5arnataka 7 x 6>: 7F:
Po#er Plant ?S< -ijayanagar 5arnataka 7 x >:: F::
UduBi Thermal
Po#er Plant !anco &andikoor 5arnataka 6 x F:: F::
Neyveli Hero Unit STPS &eyveli
&adu 6 x 7;: 7;:
Barauni Thermal
Po#er Station NTP6 3arauni 3ihar
7 x ;:! 7 x
6:; >6:
Thermal Po#er
Station NTP6 5anti 3ihar 7 x 66: 77:
Patratu Thermal
Po#er Station ?SEB atratu Hharkhand
8 x 8:! 7 x
D:! 7 x 99:
6:;! 7 x
Tenu=hat Thermal
Po#er Station T4N! Hharkhand 7 x 76: 87:
%ola=hat Thermal
Po#er Station <BP36! Mecheda
3engal F x 76: 67F:
Thermal Po#er
Station <BP36! Suri
3engal ; x 76: 6:;:
Bandel Thermal
Po#er Station <BP36!
8 x F:! 6 x
76: 8;:
Santaldih Thermal
Po#er Station <BP36!
8 x 67:! 6
x 7;: 9>:
Sa=ardi=hi Thermal
Po#er Station <BP36! Monigram
3engal 7 x >:: F::
3ur=aBur Thermal
Po#er Plant 3P! +urgapur
7 x >:! 6 x
9:! 7 x 9;!
6 x 66:! 6
x >:: FD:
IB Thermal Po#er
Plant OPG6! 3anharpali #rissa A x 67: DF:
6aBtive Po#er Plant NA!6O "ngul #rissa 7 x 76: 87:
%ahal=aon SuBer
Thermal Po#er
Station NTP6 5ahalgaon 3ihar
8 x 76:! >
x ;:: 7>8:
Bo"aro Thermal
Po#er Station B 346 3okaro Hharkhand > x 76: F>:
Thermal Po#er
Station 346 $handrapura Hharkhand
> x 6>:! >
x 67:! 7 x
7;: 67;:
Fara""a SuBer
Thermal Po#er
Station NTP6 &agarun
> x 7::! 7
x ;::! 6 x
;:: 76::
3ur=aBur Thermal
Po#er Station 346 +urgapur
6 x 68:! 6
x 76: >;:
Me>ia Thermal
Po#er Station 346 +urlavpur
8 x 76:! 7
x 7;:! 7 x
;:: 7>8:
3ur=aBur Steel
Thermal Po#er
Station 346 +urgapur
3engal 7 x ;:: 6:::
%oderma Thermal
Po#er Station 346 5oderma Hharkhand 7 x ;:: 6:::
Talcher SuBer
Thermal Po#er
Station NTP6 5aniha #rissa F x ;:: >:::
Talcher Thermal
Po#er Station NTP6 'alcher #rissa
8x F:! 7 x
66: 8F:
Industries 1irakud #rissa
6x F9.;! >
x 6:: >F9.;
Bud=e Bud=e
Thermal Po#er
Plant 6ES6 "chipur
3engal > x 7;: 9;:
Tita=arh Thermal
Po#er Station 6ES6
3engal 8 x F: 78:
6ES6 Southern
Generatin= Station 6ES6
3engal > x F9.; 6>;
?o>o$era TPP Tata Hojobera Hharkhand
> x
67:!6xF9.; 879.;
?harsu=uda TPP 4edanta Hharsuguda #rissa 8xF:: 78::
4edanta Aluminim
6PP 4edanta Hharsuguda #rissa Dx6>; 676;
Essar Po#er
Gu>arat !td2 Essar Po#er Hamnagar Gujarat 7JF:: 67::
Total '+( '')'C(

Financial Analysis & Comparison Of UPRVUNL

o 'o analyGe the per unit cost.
o 'o know the financial position of ,(-,&).
o 'o make comparison of major financial indicators for power generation of
,(-,&) with &'$! GS%$) < "G%&$#.
o 'o know the profit generated by the organiGation of ,(-,&) < its
comparison with other power generation companies.
UPR4UN! is wholly owned state thermal power utility with present
generating capacity of 8FA> M?! operating ; 'hermal ower Stations within ,ttar
radesh. oised to contribute in the growth of state! we@re in the process of adding
further 67;: M? capacity to our existing fleet by year 7:6>.
,ttar radesh (ajya -idyut ,tpadan &igam )imited 0,(-,&)4 was constituted on
dated 7;.:A.6DA: under the $ompanies@ "ct 6D;F for construction of new thermal
power projects in the state sector. 'he first 'hermal ower Station constructed by
,(-,&) was ,nchahar 'hermal ower Station of 7J76: M? capacity and it was
transferred to &'$ on dated 6>.:7.6DD7. #n dated 68.:6.7:::! in accordance to ,..
State %lectricity (eforms "cts 6DDD and operation of ,.. %lectricity (eforms
'ransfer Scheme 7:::! ,.. State %lectricity 3oard! till then responsible for
generation! transmission and distribution of power within the state of ,ttar radesh!
was unbundled and operations of the state sector thermal power stations were handed
over to ,(-,&).
'oday it is looking after operations of five thermal power plants located in different
parts of ,..! with a total generation capacity of 8FA> M? with planting facility as
ANPARA >J76: M? >J76: M? N F>: M? 6F>: M?
SONEB5A3RA 7J;:: M? 7J;:: M? N 6::: M?
OBRA 7J;: M? 7J;: M? N 6:: M? 67AA M?
SONEB5A3RA 7J6:: M? 7JD8 M? N 6AA M?
;J7:: M? ;J7:: M? N 6::: M?
PAN%I 7J66: M? 7J6:; M? N 76: M? 76: M?
PARI655A 7J66: M? 7J66: M? N 77: M? 668: M?
?5ANSI 7J76: M? 7J76: M? N87: M?
7J7;: M? 7J7;: M? N;:: M?
5AR3UAGAN? 6JF: M? 6JF: M? N F: M? 86; M?
A!IGAR5 6J66: M? 6J6:; M? N 6:; M?
6J7;: M? 6J7;: M? N 7;: M?
"s on :6.:6.7:6> ,(-,&) has 6786 executives and FDDF non=executives on its
"mong these units! many of them have crossed their useful working life of 7; years!
and some of them are closed since long! amounting to an effective available capacity
of >999 M? only. "s against the peak demand for power at over 9;:: M?! the
actual average generation in the State is around 7F:: M? only. "dd to this the
imports of about >:::=>7:: M? of power! the total availability of power to the
consumers is around ;8::=;F:: M?! leading to a deficit of 7;=7AB.
Pan"i Thermal Po#er Station
anki 'hermal ower Station 0'S4! located about 6F km away from 5anpur
railway station! was started with two units 0I < II4 of >7 M? each 07J>7 M?4. 'he
ower house was formally inaugurated and dedicated to the &ation by the then prime
minister Mrs. Indra Gandhi on 9th Sept 6DFA.
'he first unit 0unit no.6! >7 M?4 was taken on commercial loading on 8th #ct 6DF9.
'he second unit 0unit no. 7! >7 M?4! similar to the first unit was commissioned on
68th Huly 6DFA for commercial loading.
"fter generating power for about 7A=7D years! 7x>7 M? units had completed their
rated life.
'hose units were become obsolete and technically not competent to meet out new
pollution norms prescribed by the statutory bodies.
2irst unit was closed on >:th &ovember 6DD; and permanently deleted from installed
capacity of the station by the $entral %lectricity "uthority 0$%"4 w.e.f. >6st "ug
'he second unit was closed on 6Ath "pril 6DD9 and permanently deleted from
installed capacity of the station w.e.f. 6:th Hune 7::;.
EEtension o1 Plant
O In 6D9F=99! two new units 07 x 66: M? units4! manufactured! supplied!
installed < commissioned by 31%)! were introduced as an extension of this power
O ,nit no. > 066: M?4 was commissioned on 6:th &ov 6D9F.
O ,nit no. 8 066: M?4 was commissioned on 78th March 6D99.
O 'he units > < 8 are exactly identical.
O 'hese units have been de rated to 6:; M? each by the $entral %lectricity
"uthority 0$%"4 w.e.f. 66th Han 6DD: resulting in present installed capacity of the
station as 76: M?.
O 'he units were equipped with %lectro Static recipitators 0%Ss4 in Han 6DD>
0unit III4 and Huly 6DDF 0unit I-4.
Technical Features o1 (A''+M< Units
'he 66: M? units are designed based on universally adopted conventional design of
sub=critical coal fired power generating units with features of reheating and
regenerative feed heating system.
Steam Generator
O $oal is fed to the boiler using pulveriGed coal feeding technology with semi
direct type of firing system.
O $oal is pulveriGed in pulveriGes 0drum type coal mills4 and stored in pulveriGed
coal bunkers 0$ bunkers4! from where it is pneumatically transported and supplied to
the boiler through primary air.
O 'otal required air for combustion is supplied in furnace through :7 nos. of I+
fans! :7 nos. of 2+ fans < :7 nos. of " fans.
O rimary air consists of approximate >:B quantity of total required air and
remaining 9:B quantity is supplied as secondary air.
O 'urbine is of multistage! impulse reaction type consisting three separate turbine
cylinders arranged linearly.
O 'hese turbine cylinders are of high pressure 014! intermediate pressure 0I4
and low pressure 0)4 turbines. 'he rotor shafts! of turbines and generator are
connected in tandem compounding.
O Main stream is fed to the high pressure 014 turbine from the boiler and exit
steam from 1 turbine is taken back to the re=heater section of steam generator
0boiler4 through cold reheat 0$(14 steam line to re heat it up to the temperature of
main stream 0;8:P$4.
O 'he steam from intermediate pressure 0I4 turbine goes to low pressure 0)4
turbine and finally exhausted in condenser through low pressure 0)4 turbine. )
turbine is of double flow type.
Generatin= Units at Pan"i Thermal Po#er Station
"ll the units of this station are coal fired thermal power plants! having a total
generating capacity of 76: M? and consists of following units =
s No2
3ate o1
3ate o1
6 >7 M?
+ :8.6:.6DF9
7 >7 M?
+ 68.:9.6DFA
> 66: M? 6:; M? 6:.66.6D9F 7D.:6.6D99
MMs 3harat 1eavy
%lectricals )imited.
8 66: M? 6:; M? 78.:>.6D9F 7D.:;.6D99
MMs 3harat 1eavy
%lectricals )imited.
'he coal to all these units is fed from coal mines of 3$$)! %$) by means of
AnBara Thermal Po#er Station
"npara 'hermal ower Station is located at "npara in Sonbhadra district in the Indian
state of ,ttar radesh! about 7:: km 067: mi4 from -aranasi on the -aranasi = Shakti
&agar route.
'here are in total seven operational units! all of which are coal=fired thermal power
stations. 'he machinery for the "npara " 0 > units4 are from 3harat 1eavy %lectricals
)imited. "npara 3 0two units4 from Mitsubishi $orporation! Hapan.Machinery for
"npara $ were sourced by )anco power. Machinery for "npara + is sourced from
31%). 'he coal to all these units is fed from 5haria! 5akri and 3eena open coal
mines of &$) by company owned freight trains! a merry go round system maintained
by ,(-,&) and previously on roads by +umpers.
"npara " station and 3 station has a capacity of 6F>: M? in total. %ach of the first
three units has a capacity of 76: M? and the other two have a capacity of ;:: M?
each. 'he last unit of ;:: M? was commissioned in 6DD8."npara $ has installed
capacity of 7JF:: M?. ,nder construction "npara + will again have 7JF:: M?
installed capacity.
"npara was initially made in two phases! "npara " 0last unit commissioned in6DA>4
< "npara 3 0last unit commissioned in 6DD84 by erstwhile ,S%3. In year 7::9
"npara $ was allotted to be constructed in sector domain. 'he new power plant
made under by )anco=infrastructure and (un by )anco power 7xF:: M?. )ast
unit of "npara $ was commissioned in 7:67. ,nder State government@s flagship
power=generation company ,(-,&)! a new unit "npara + is under construction in
full swing. ,nits are configured for generating 7xF:: M? and are manufactured by
31%). lant is expected to be operational in 7:68.
Plant Location
'he "npara ower lant is located near village "npara on the bank of (ihand
reservoir in the district of Sonebhadra 0,ttar radesh4. It is about >8 km from (ihand
+am on ipri=Singrauli road and about 7:: km from -aranasi. -aranasi is connected
by airMrail and road route from other major cities.
Generatin= Units at AnBara Thermal Po#er Station
"ll the units of "npara 'S are coal=fired thermal power plants! having a total
generating capacity of 6F>: mw and consists of following units =
s No2
3ate o1
3ate o1
6 76: M? 76: M? 7F.:>.6DAF :6.:6.6DA9
MMs 3harat 1eavy
%lectricals )td.
7 76: M? 76: M? 7A.:7.6DA9 :6.:A.6DA9
MMs 3harat 1eavy
%lectricals )td.
> 76: M? 76: M? 67.:>.6DAA :6.:8.6DAD
MMs 3harat 1eavy
%lectricals )td.
8 ;:: M? ;:: M? 6D.:9.6DD> :6.:>.6DD8
MMs Mitsubishi
$orporation! Hapan
; ;:: M? ;:: M? :8.:9.6DD8 :6.6:.6DD8
MMs Mitsubishi
$orporation! Hapan
'he coal to all these units is fed from 5haria! 5akri and 3eena open coal mines of
&$)! by means of a marry=go=round system! maintained by ,(-,&).
O$ra Thermal Po#er Station
It is in district S#&%31"+(" about 6> 5M from $1#"& railway station! about A
5M off S1"5'I &"G"( road. It is about 67; 5M from -"("&"SI! which is
connected by airMrail and road route from all major cities.
#bra power plant has 6;;: Megawatt power. It is first 7::M? ower plant in India.
It also a thermal lant has ;Q;:R>Q6::R;Q7::N6;;:M?.
'he thermal station has 6> units with the total capacity of 6;;: M? and the 1ydel
has a maximum capacity of DD M?. 3ut the power plant has passed an upgrade of 7
more units with a power generation capacity of FF:M? which is expected to be ready
by 7:66. 'he power plant will surely help coping the deficiency of electricity. #ne of
the major achievements for the plant is that it was the "sia@s number 6 'hermal ower
production plant in the 6DA:s.
Generatin= Units at O$ra Thermal Po#er Station
"ll units of this power station are coal fired thermal power plants! having a total
generating capacity of 67AA M?. 'he power station consists of following units =
3ate o1
3ate o1
6 ;: M? ;: M? 6;.:A.6DF9 6;.:A.6DF9
3#I)%(S 2(#M
MMS '"G"&(#G
< MMS ) M S #2
7 ;: M? ;: M? 67.:7.6DFA 66.:>.6DFA =+#=
> ;: M? +eleted 6>.6:.6DFA 6>.6:.6DFA =+#=
8 ;: M? +eleted 66.:F.6DFD 6F.:9.6DFD =+#=
; ;: M? +eleted >:.:9.6D96 >:.:9.6D96 =+#=
F 6:: M? +eleted :8.6:.6D9> :8.6:.6D9>
MMs 3harat 1eavy
%lectricals )imited!
9 6:: M? D8 M? 68.67.6D9; 68.67.6D9; MMs 3harat 1eavy
%lectricals )imited!
A 6:: M? D8 M? 6;.:D.6D9; :6.:6.6D9F
MMs 3harat 1eavy
%lectricals )imited!
D 7:: M? 7:: M? 7F.:6.6DA: 6;.:>.6DA:
MMs 3harat 1eavy
%lectricals )imited!
6: 7:: M? 7:: M? 68.:6.6D9D :F.:>.6D9D
MMs 3harat 1eavy
%lectricals )imited!
66 7:: M? 7:: M? >6.67.6D99 68.:>.6D9A
MMs 3harat 1eavy
%lectricals )imited!
67 7:: M? 7:: M? 7A.:>.6DA6 7D.:;.6DA6
MMs 3harat 1eavy
%lectricals )imited!
6> 7:: M? 7:: M? 7A.:9.6DA7 7D.:9.6DA7
MMs 3harat 1eavy
%lectricals )imited!
'he coal to all these units is fed from coal mines of 3$$)! %$) by means of
Parichha Thermal Po#er Station
It is located in district H1"&SI about 7; 5M before H1"&SI! on 5")I=H1"&SI
road. Hhansi is well connected by airMrail and road route from all major cities.
Generatin= Units at Parichha Thermal Po#er Station
"ll the units of this station are coal fired thermal power plants! having a total
generating capacity of 668: M? and consists of following units C
s No2
3ate o1
3ate o1
6 66: 66: >6.:>.6DA8 :6.6:.6DA;
MMs 3harat 1eavy
)imited! India.
7 66: 66: >6.:>.6DA8 +ec.6DA8
MMs 3harat 1eavy
)imited! India.
> 76: 76: May.7::F 78.66.7::F
MMs 3harat 1eavy
)imited! India.
8 76: 76: 7A.67.7::F :6.67.7::9
MMs 3harat 1eavy
)imited! India.
; 7;: 7;: 6;.:;.7:67 69.:9.7:67
MMs 3harat 1eavy
)imited! India.
F 7;: 7;: 69.:D.7:67 6A.:8.7:6>
MMs 3harat 1eavy
)imited! India.
'he coal to all these units is fed from coal mines of 3$$)! %$) by means of
5ardua=an> Thermal Po#er Station
1arduaganj 'hermal ower Station is located at Tasimpur ower 1ouse $olony
which is 6 km distance from 1arduaganj (ailway Station at 1arduaganj in "ligarh
district in the Indian state of ,ttar radesh! about 6A km from "ligarh.
1arduaganj 'hermal ower Station has an installed capacity of FF; M?.
6 ,nit of F: M? capacity 0it is unit number fifth4.
6 ,nit of 66: M? capacity 0it is unit number seventh and its capacity derated
to 6:; M?4.
6 ,nit of 7;: M? capacity 0it is unit number eighth4.
6 ,nit of 7;: M? capacity 0it is unit number ninth4.
Its last unit 0ninth unit4 of 7;: M? became operational in Hune 7:67.
Generatin= Units at 5ardua=an> Thermal Po#er Station
"ll the units of this station are coal fired thermal power plants! having a total
generating capacity of 86; M? and consists of following units C
3ate o1
3ate o1
I >: M?
II >: M?
III >: M? +%)%'%+
6 ;: M? +%)%'%+ :7.:>.6DFA 76.:8.6DFA ,SS(
7 ;: M? +%)%'%+ 66.:6.6DFD 7>.:6.6DFD
> ;; M? +%)%'%+ 69.:6.6D97 Mar.6D97
MMs 3harat 1eavy
%lectricals )imited.
8 ;; M? +%)%'%+ :D.:D.6D97 6A.:D.6D97
MMs 3harat 1eavy
%lectricals )imited.
; F: M? F: M? 76.:>.6D99 68.:;.6D99
MMs 3harat 1eavy
%lectricals )imited.
F F: M? +%)%'%+ 76.:A.6D99 7F.6:.6D99
MMs 3harat 1eavy
%lectricals )imited.
9 66: M? 6:; M? >6.:>.6D9A "ug.6D9A
MMs 3harat 1eavy
%lectricals )imited.
A 7;: M? 7;: M? 6:.:A.7:66 :6.:7.7:67
MMs 3harat 1eavy
%lectricals )imited.
D 7;: M? 7;: M? :7.:8.7:67
MMs 3harat 1eavy
%lectricals )imited.
'he $oal to all these ,nits is fed from $oal Mines of 3$$)! %$) by means of
-ision statements have become fashionable for every organiGation. 'his helps
galvaniGe energy of stakeholders to provide support to the mission of the
organiGation. 1owever for many organiGations it turns into a bitter dream causing
demoraliGation among stakeholders. 'his happens because the vision is not supported
by strategic plans and actions due to poor resource base or poor resource allocation or
environmental vagaries or just appear incredulous to stakeholders. ,(-,&) will
avoid this vision trap by avoiding such possible pitfalls. 'he vision statement should
be broad enough to capture the future diversity of actions by bearing on internal
competencies! and changing when the environment changes. ?e sate the vision
statement as followsK
Act as catalyst in making Uttar Pradesh an electricity surplus state by
201 and help energi!e e"ery electric de"ice in the country beyond
6atalyst& 'his is because ,(-,&) cannot hope to accomplish the growing energy
needs on its own but by developing partnerships with many other suppliers!
competitors and buyers.
Electricity surBlus State& 3ased on the demand projections ,(-,&) will go
beyond what it is already doing today! and by other states! national and private players
! it will build collaborations and also produce on its own the future needs of the sate
and the country .
5elB ener=iFe every electric device in the countryK ,(-,&) will not stop
functioning in 7:6A but will continue to add to the generation of electricity! if need be
by other input methods
3eyond coalK hydrocarbons! hydropower! nuclear! non=conventional sources by
learning through (<+ and collaborations with technology partnersE maintaining a
catalytic role.
?hile almost every organiGation has a vision many do not have written statements
because on paper they look less convincing. Most firms therefore move beyond the
vision and articulate their mission statements that are more tangible! credulous and
more often written. 'ypically firms and corporations articulate their mission
statements which drive from the vision! written or unwritten. ?hile visions are
futuristic intensions! aspirations and dreams! mission seem to reflect of either short
term future direction or the businesses they operate in. 'he key elements that mission
statements contain are obligations to stakeholders! scope of business! sources of
competitive advantage and view of the future consistent with the long=term vision. In
general they contain the role that the company wishes to adopt for itself! a description
of what the company hopes to accomplish! a definition of the business and means to
gauge the future success. 3ase on these guidelines we develop below the components
of the mission statements and then a more integrative mission statement.
O$li=ation to sta"eholders
'here are many stakeholders who have stake in the business of ,(-,&)K
Shareholders! lenders! the , Government ! business partners! customers both
intermediaries and consumers! the employees of all cadres= managers! engineers!
ministerial! support staff and labour contractors! regulators! environmental groups!
broad communities! and society in general. It is important to recogniGe that these
stakeholders benefit or get impacted by the operation of ,(-,&) who may have
conflicting interest and degree of power and may demand management to pay more
attention to the specific stakeholders group at the expense of others. It is the role of
the managers to minimiGe these conflicts so that their positive energies are utiliGed to
realiGe the sated vision. #bviously it must address their emotions and their interests.
?e may state
J<e $ill ser"e each of our stakeholders amicably through a democratic process#
ScoBe o1 Business
'his defines the boundaries of the business. It is necessary to maintain focus on the
business. It should not be too narrow to miss future energy trends nor should be too
broad that it loses its direction. ?hile it should maintain its focus on electricity
generation but it cannot lose sight of opportunities in transmission! distribution on the
value chain nor could the other sources of energy.
,(-,&) will remain in the generation activity through thermal power stations
using predominantly coal and gas with oil as auxiliary feed. 1owever it may get
involved with the generation by using other raw material like )&G and hydro electric
generation as and when the need so arises! besides working with partners in non=
conventionalM renewable sources of energy in the very long term. In the short run
however! it will focus on generating energy by using coal! which is its area of
competence. "ny other ventures beyond the thermal power based on coal feed it will
explore the joint venture route as and when the opportunity arises.
'hus! UP%&U'L stri"es to produce and supply electric energy in the most
efficient manner#
Sources o1 6omBetitive advanta=e
&o business survives in the long=run without any competitive advantage or
uniqueness. "lthough electricity generation is the commodity business but the way it
is supplied or generated at the right frequency can have distinct impact on the
performance! which implies least cost production among its peer group. Since
,(-,) is still the largest producer of electricity it would continue to do so! even
better! what it is doing by building operational excellence by encouraging! motivating
and incentiviGing its technical people which are engineers of high quality! which most
competitors do not have access to. 'his can define its distinctiveness if it builds
enabling systems for engineers to deliver their best. 'herefore smoothening the
operating systems which can provide it the distinctive competence that it needs to
compete in the future competitive environment.
'herefore Jit $ill compete on the basis of its technical core#(
4ie# o1 the 1uture
JUPR4UN! #ill $e the most e11icient and one o1 the most resBonsive electric
ener=y suBBlyin= utility in the country #ith a Bride in its technical coreK with a
leadership role in the state of ,ttar radesh where it will be leader in catalyGing the
resources for the development of the State .
Mission Statement
UP%&U'L $ill be leader in generating) transmitting and distributing electric
energy most efficiently through collaborations $ith its partners by using its
technical people as its *ompetiti"e ad"antage $hile balancing and ser"ing the
interest of all of its stakeholders(
6orBorate 4alues
6. %xcellence in everything it does
7. (espectful and fair to each employee
>. $ommitted to nurturing of its technical talent
8. 2air to its partners
;. ?ill remain environmentally and socially responsible.
6orBorate O$>ectives
6. 3uild a strong competence in customer responsiveness by leveraging human
resources through training! development and motivation.
7. %xpansion and growth by improving the efficiency of existing plants and adding
new generation capacities.
>. (educing supply chain bottlenecks and operating costs.
8. +iversifying both into vertical chain activities and diversifying the input base that
lead to the leading market share.
;. 3y taking advantage of economies of scale becoming the lowest cost generator of
%lectricity in the state and the country.
F. artnering with other entities to minimiGe investment needs and reducing the
Investment risk.
9. 3ecoming one of the leaders in environmental management and socially
responsible citiGenship in its peer group. In order to meet the objectives! mission!
vision of the corporation! ,(-,&) needs to take stock of its Strengths and
weaknesses and assess the environmental future threats and opportunities in order to
allocate resources judiciously. 'here we attempt the S?#' "nalysis.
S<OT Analysis
6. #wnership is with state government that reduces the risk of liquidation who can
make investment in public interest should the things turn hostile.
7. It has (<+ support from $entral %lectricity "uthority keeping the research and
development costs almost Gero.
>. It is easy to get land and environmental clearances from respective authority
without suspecting foul play.
8. It has top management who very competent and committed who work for the
government as well as for the corporation= facilitating government support as and
when required.
;. ,(-,&) has a rich history and competence of generating electricity through
coal and oil! water with priority allocation of inputs.
F. 'he input costs are cushioned against market price vagaries and thus helps in
realiGing costs through regulated tariff system.
9. It has access to large real estate which is now free of cost and does not require fresh
investment with all the facilities required for a 'S like water! transport access.
A. It has the largest market share of about ;:B of capacity in generation business as
compared to its competitors. 'he actual capacity for generation is >D>> M? as on >6
March! 7:66 after excluding unit F of #bra and unit no. > of 1arduaganj.
D. "ssured market reducing the cost of marketing because of historical relationships
and scarcity of electricity. +emand is not an issue for next 6: years.
6:. Most of the plants are depreciated leading to less strain on the balance sheet.
66. It has the largest number of technical manpower in the state and one of the largest
in the country that is well experienced.
67. 'he percentage of youngsters is growing beyond ;:B 0about 9;: out of 68;:4 at
executive 0technical4 level which are well educated! getting good training and are very
6>. $orporate values are already articulated and are in place.
68. Security of employment provides stability to the knowledge base which does not
migrate continuously and good compensation policy.
6. 3eing state owned organiGation it suffers from slow decision making process and
dealing with less risky but expensive suppliers and buyers which also limit speed of
decision making.
7. 3ecause of S#% employees do not have commercial mindset.
>. 'he top management comes from Government which also has its negative sideK the
commitment levels are not very high because of uncertain tenure.
8. $ost! quality! and schedules for UworksV lower efficiency in #<M and roject
;. 1as already adequate input linkages.
F. 'hree 2ull time directors/ positions are vacant! substituted by part time director
finance! and former technical director serving as advisor. ost of +irector ersonnel is
9. +isputes on seniority are quite frequent which delays the promotion on senior
positions since last many years lowering motivation.
A. romotions are not based on competence but other politically determined criteria.
D. #ld organiGation continues which is not consistent with today/s ground realities.
6:. Induction on compassionate ground has resulted in work inefficiencies and high
cost work force! which , Government has already stopped in its own departments.
66. (oles and responsibilities are not commensurate with compensation! which are
needed to be defined and refined.
67. +eferred or partial payments by customers adversely affect the cash cycle.
6>. It is difficult to mobiliGe equity and thereby loans due to profitMloss account losses
and because government also takes very long time in implementing financial
68. Supply of coal comes from distantly located pit heads increasing input
transportation costs.
6;. Government ownership provides cushion against inefficient working resulting in
lower efficiencies.
6F. -ery high age of plants keeps the breakdowns as frequent resulting in lower )2
and high input costs.
69. roject implementation is a very serious drawback for lack of project management
skills and bureaucratic procedures.
6A. oor contract reinforcement with equipment suppliers like the virtual monopolist
31%) resulting into high cost and time overruns.
6D. $oal linkages for plants are inadequate for future needs.
7:. "ging work force has acted as a drain for long time which is addressed only
76. $oordination and communication processes are very slow.
77. 'echnology enablers such as I' have only been addressed recently whose
implementation is moving at a slow pace.
7>. Inadequate focus on regulatory affairs. 1andled at plant level instead of corporate
78. "uxiliary consumptions are very high compared to its competitors like &'$.
7;. olitical interference at the level of supplies 0favored4! operations= lack of proper
allocation of manpower at right jobsM place! sub=contractors! and employees
7F. )ower )2 compared to competitors and national average makes operations
79. It is estimated that the balance sheet may have the losses until >6st March 7:6: to
the tune of (s. ;A;.9 crore as per provisional balance sheet! whereas we have
repayments from customer of the same tune! therefore the interest cost without any
benefits to corporation.
6. 3# and 3'G can be awarded through bidding system instead of single supplier as
is given to 31%) which do not adhere to timelines of the contract who do not pay
penalties for project time over runs.
7. ossibility of increasing revenues through $+M! "' 0erform! "chieve and
'rade4 mechanism of 3%% 03ureau of %nergy %fficiency4.
>. 'here is a good opportunity to increase the )2 close to national average of 9;B
thereby rising higher generation of electricity.
8. (evenues can further increased by gains from ,I provisions through disciplined
management of its resources.
;. 'here is going to be about 6:=7:B gap until 7:69 in the demand and supply which
will ensure that whatever is produced is consumed= no demand risk
F. 2uel security through H-s with mining companies.
9. roductivity improvements through usage of I' applications.
A. Improving financial health by setting outstanding receivables from ,$) through
interdepartmental coordination.
D. &ew projects can improve the )2! and higher energy generation which will have
positive impact on the financial health.
6:. "utomated equipments M super critical plants can produce higher levels of energy
at reduced prices.
66. (enewable sources especially solar energy can be a good opportunity in future
especially in , which eventually translate into more energy with lower costs
67. "vailability of land from ash ponds! which can be utiliGed for further expansion
by converting that land planting Hatropha plants which can be converted into diesel!
and we can earn carbon credits too.
6>. Scrapping the non=functional units that are officially deleted. 'hey can be sold out
in market and vacated land can be used for new plants eg. #bra and 1arduaganj units.
'he scrapped units can be sold through MM'$.
68. Scope for Hoint venture exists today more because private sector has already
moved in generation and many is willing to join the business that normally does not
have experienced manpower.
6;. -alue chain partners and competitors are willing to join forces to produce
electricity like &'$! $oal India limited! even transmission and distribution
6F. 'he distribution sector is opened for participation by generation companies
improving scope for vertical integration.
69. Government! including S%($ is very responsive and accommodating if willing to
improve electricity generation >
6 .3'G had been given without tender to 31%)! which has become a liability because
of noncompliance of the agreement= non competitive rates and late completion of the
projects against +(M?ork #rder.
7. 31%) has taken advance money for (<M but may not start work even in future.
?hich may result in closure notice from $entral ollution $ontrol 3oard and other
regulatory authorities! which may cause higher penalties and closure of old plants
draining production capacity and profitability.
>. Integrity of employees! suppliers as mafias with political linkage are a serious
threat to the functioning of ,(-,&).
8. 'he deregulated generation sector may see more competition in future which may
threaten the leadership position of ,(-,&) #perations.
;. &ew plants have long gestation periods making the progress slow towards
leadership position.
F. 'he aging plants under perform but maintenance cannot be done on schedule
because of demand pressure.
9. ollution control regulation is becoming more stringent under international
guidelines whose compliance can threaten closure of many units! if not acted upon in
A. $oal mafia continues to exert pressure on the prices! quality and quantity of coal.
D. 'he constant pressure on input prices may build pressure on energy prices which
because of more competitive output may force regulator to reduce prices which may
adversely affect the expansion plans.
6:. Government is rather reluctant to provide additional equity required for expansion
of capacities and thus affecting expansion plans.
66. 'he skill gap appeared because of attrition due to retirement or lack of training in
"3' (egime.
67. $ontinuing government mindset may result in serious lag in financial viability of
6>. 'he state of monopoly has already been threatened by larger firms with adequate
investment capacity which is likely to threaten the leadership position of &igam.
68. "t some point in time the , State may get trifurcated reducing the power of the
&igam as happened in case of ,ttrakhand.
6;. 'he stranglehold of politician may become worsen in future in curbing the
freedom of the professionally managed corporation! because of 6::B ownership.
6F. Increasing inflation may lead to higher interest rates! wages and cost of electricity
unless competition brings in commensurate reduction in operating costs.
69. 'he continuous changes in the business environment makes it difficult for
companies to keep environmental knowledge undated regularly which calls for
continuous learning to which old timers are ill=equipped to handle.
6orBorate 9 Business Strate=ies
?e classify our recommendations into ten broad categoriesK managing dynamic
environment! business portfolio! Smoothening supply chain! #perations including
project management! #rganiGational restructuring! 1uman (esource management!
3oard of +irectors! Investment management! %mployee welfare and $orporate Social
Mana=in= 3ynamic Environment
6. 'here is a need for a business planning +epartment to collect! generate and collate
data so that informed decision can be made. 'his unit can scan information regarding
customers! suppliers! regulatory changes! business opportunities! partnership
opportunities! 1uman resource related practices! new technologies! competitor
activities! political changes! social changes! economic and financial matters! pollution!
energy audit reports! related technologies! issues of sustainability.
7. 'his department can be headed by a +irector $orporate Strategy 07;=>: years
experience4 trained or experienced enough in strategic lanning who may be
supported by other managers 0see corporate structure4 and young business analysts 07=
> years experience with M3" degree4 with some specialiGation in economics!
statistics! environmental engineeringM pollution control! business development! with
skills in competitor and customer analysis! a financial manager! an electrical
>. 'he roles will be to analyGe related issues through different disciplinary
perspectives and build a comprehensive view of the issue at the planning levels. 'hey
will also be responsible to continuously review the current business environment and
suggest future trends with respect to new emerging trends. 'hey will assist the
operating managers on various issues including the related dataM information
availability. Some of the hard data will be stored in the computers which will be
accessible to anyone who want any relevant information. 'hey will help set up
monthly! quarterly targets! annual targets and plans and 7: years rolling plan. 'hey
will also alert respective operating managers about any significant changes that might
affect their functions. ?e have recommended this entity on environmental
intelligence because the future leaders will compete on the basis of superior
knowledge and information and also we think the high quality manpower is going to
be the basis of competition at least for ,(-,&) as we have recommended in the
mission statement. 'his unit will work as a brain of the corporation. &eedless to
mention that highly qualified people should be brought in or developed through
extensive training in their respective areas. It will help identify future threats and
opportunities and at the same deepen the organiGed and disciplined decision making
which is right now in a very ad hoc and rudimentary form.
Business Port1olio
6. $onsider continuous evaluations of each generating unit which can perform above
F:B )2 with low maintenance! otherwise scrapped. ?e have analyGed below that
the new capacity additions are more beneficial than renovation < moderniGation
beyond certain performance point.
7. "ny future generating unit should not be below ;:: M? as the new entrants will
come with super critical plants who will threaten the leadership position of
,(-,&). 'he larger plants have higher fixed costs but lower running expenses and
thus making smaller plants or less capacity plants as unviable in 6:=6; years time
>. Since most places land and utilities are already developed and there is ample scope
of putting up new plants which may not face demand crunch and it should help
,(-,&) to maintain its leadership profitably at least until 7:69. ?e need to
explore new plot of land for future expansion
8. ?e can consider )&G based thermal plants if the )&G linkages could be tied up in
the medium term.
;. In the meantime we also explore the no conventional energy sources for which we
can create a new cell and recruit experienced engineers for experimentation. 'he
special interest areas could be solar energy! Hatropha plant based fuel. 'his may help
in getting renewable sources of energy. 'he technological Institutes may be made
partner in (<+ besides exploring (<+ based small firms or joint partners for
exploring newer technologies 0:.;B of sales could be allocated to this unit on new
product or process development4. 'hey pay offs could be long=term.
F. In addition we put up at least limited resources 06Bof sales4 in (<+ and get
external consultants to assist in (<+ lab to find ways and means of improving
oBerational e11iciencies in Blant which look for reduction in auEiliary
consumBtion in operations and examine the whole input supply chain.
9. "lso the planning unit can explore possible partners who can work as partners in
joint ventures which will ease input supplies! or bring in much needed equity into new
plants. art of employees could be shifted to the joint venture. 'his will give a chance
to bring in efficiencies in our own plant as the H-s can work and learn in less
bureaucratic environment away from political interference or operational fire fighting.
Smoothenin= SuBBly 6hain
6. 'here had been major problems in getting 3'G %quipment because 31%) had
been a sole supplier! which had not delivered equipments in time whether related to
(<M or new turbines! which is the major cause of concern at ,(-,&) as many
projects are delayed because of 31%). It is suggested that both 3'G and 3#
supplier base must by necessity be diversified and the tendering process strengthened.
'here are now international vendors in these areas which are allowed by the
government to sell equipments in the county.
7. #n oil supply there are not many problems as we source material from Sate owned
oil enterprises! although adulteration issues can be more rigorously monitored.
1owever coal supplies that reach the plants are either underweight! or of poor quality.
'he corporation has taken many effective steps like the management has appointed
agents who can procure the coal in right quantity and quality. 'he supplies come from
distant places and thus reducing the quantity reached. Some coal reaches in the form
of mud due to open wagons and some reach with big stones. 'he corporation should
further look into the ways and means to further reduce any losses either because of
quality! quantity or transportation issues. It is recommended that a committee of
procurement managersM engineers representing each plant is constituted which will
make further recommendations on the issue.
OBerations includin= Bro>ect mana=ement
6. 3arring a few plants! there is more focus on administration by the engineers than on
engineering work resulting into poor operations management. 'here are multiple
vendors in the same plant and across different plants. It is suggested that this function
be centraliGed and engineers are relieved from administrative functions as much as
possible. 'here must be a single vendor development department for UworksV at the
plant level under the direct supervision of the $hief of the plant. 'he tender must be
invited through ,(-,&) website in order to reduce the impact of local political
influence. 'he vendor should also be empanelled. 'here should also be a head office
representative in the vendor selection committee at the plant level.
7. Inventory and store systems should be computeriGed and proper system established
so that the items can be identified easily. 'his can be automated with the help of
inventory order system available from many vendors. hysical verification each year
should be carried out regularly and physical stock reconciled with the database.
>. %( needs to be implemented urgently so that data is available for informed
decision making. It calls for an experienced vendor especially with organiGations in
electricity generation. 'he storeMpurchase employees should be trained in I'
applications for store and purchase.
8. "sh disposal is a major concern around the plants. It is suggested that like &'$
regular auction be carried out. 'he neighborhood cement manufacturing companiesM
road construction companies should be invited to submit tendersM bids.
;. 'he major concern as witnessed during plant visits and also the review of
performance of plants indicate that the project management is the weakest link in
spite of the fact many managers are interested in getting job posting in these
departments.! resulting into delays and higher costs. Since the corporation is
expanding operations there is a need to create a special group properly experienced in
electricity generation and project management techniques in order to keep good
control on cost and time over runsW Since projects are left to operating managers who
are busy firefighting operational glitches especially in the light of aging plants! cannot
pay adequate attention to the progress of projects and thus it must be separated.
F. "lthough utilities maintenance is found to be reasonably all right except ash
disposal! 'here is need for continuous improvements after setting standards for each
activity! including! water! land! roads! electrification! hospitals. Schools etc in proper
9. 'he bench mark studies against $%" norms andMor &'$ comparable plants
indicate that most of ,(-,&) plants are underperformingK )2! availability factor!
Station 1eat %xchange (atio! "uxiliary consumption! outagesE which have adverse
impact on the costM M, and also the profitability of the corporation. 'he reasons of
course are old plants! poor execution of (<M! #<M and delayed projects for up
rating or new capacity additions. 'he targets must be revised upward. "s a thumb rule
there ought to be at least 7=>B improvement in each operational parameter with 7:6:=
66 as base year. ?e expect until 7:69 an improvement of 67=6;B over the base year.
'he same can be translated into each plant and unit so that disaggregated targets can
be set. &eedless to mention that in addition to enabling corporate environment!
including! restructuring of
#rganiGation! cadres! smoothening supply chainE monetary incentives be linked with
the weighted average of )2! "uxiliary consumption! S1(! #utages with 8:B! >:B!
7:B! >:B. If the savings are indeed achieved which may have impact of A=6:B every
year. 'he cash incentives of 6=7B of the savings or growth may be passed on to
A. 'he main reasons of lower performance are the aging plants! lower machine loads!
forced outages! high auxiliary consumption! Station 1eat (ate! and also because of
slow progress of (<M due to lack of structural focus and non=supply of equipments
by 31%)! who go scot free without penalties . Serious competition among vendors is
introduced by inviting tenders from international suppliers.
D. %nergy accounting and billing are still weak areas and there is something to learn
from &'$. 'hat is why beside organiGational and cadre restructuring! training and
development are emerging key thrust areas especially Strategic management! 1(!
financial and project planning and implementation.
5uman resource mana=ement
'he analyses carried out by the 1( department of the &igam indicate excess
manpower by any standard. 'he major concerns indicated are
6. Many units are deleted 0anki 7 units! 1arduaganj 8 units! and #bra > units4 but the
positions have not been scrapped. $ontrarily some of the new units are establishedK 7
units are aricha and 7 units at 1urduaganj. 'he new positions are not created
inducing murkiness in the manpower allocation. 'his notwithstanding the $%" norms
is available beside &'$ benchmarks.
7. Similarly positions required for new tasks have not been articulatedK 1(! 2uel!
(<M! %nvironment! I' and commercial. 'hese entities are working against positions
sanctioned under MM! thermal operations and plants which are needed to be
regulariGed. 'he commissioning staff required for new projects has not been provided
with new positions sanctioned. >. 'here are shortages in technical cadres as against
the support staff. "lthough there appears to be shortage against the sanctioned staff
across board but many units have been closed down.
8. 'here is a lack of role clarity at different levels some of which is caused by the
number of employees working against the sanctioned strength drawing salaries with
lower level designations! known as (esultant Seniority concept. 'here is lack of
specialiGation. &o clear cut policy exists besides the relative disliking for operational
jobs as against project jobs. 'his requires job restructuring of work which is being
currently carried out by %<* $onsultants.
;. %ngineering staff is dominated by non=degree holders due to promotions.
F. 'he appraisal system does not reflect the actual performance which is more driven
by human concerns and relationships rather than contributions! partly affected by
internal political influences.
9. 'here is a need to redesign the cadres followed by role analysis and competence
mapping study to find gaps and transfer employees after retraining for right jobs. 'o
minimiGe discontent among educationally well qualified personnel the assessment of
educational background and promotions linked to proper appraisal based on
competence mapping profile and actual performance should be introduced.
Introduction of a blockM cadre system like %=6! %=7! %=>! %=8 "&+ %=9 and %=A and
above! to provide flexibility in promotions. $adre restructuring can be inspired by the
system implemented at &'$.
A. 'raining programmes should be organiGed according to the competence assessment
and training gap thereof with respect to hard and soft skills! including leadership
development programmes %xecutive %ngineer levels and above. 'he lower level
employees should also be given substantial training in domain areas.
D. "t least >B of revenue must be allocated to trainingM education and development
purposes of staff! officers and management.
6:. )ooking at scarcity of educated and trained manpower it is extremely urgent to
begin recruitment at "% level.
66. 'here is a necessity to set up examination system before promoting offices from
lower to S% level. 'hereafter it may be based on personal interviews with selection
committee dominated by independent experts. In fact a one=year M3" degree from
"=rated institutions is must for S% level and above which can be sponsored by the
&igam with a bond of > years post=sponsorship of M3". 'hose already with M3"
from $=grade institutions should also be sent for "=rated M3" programmes. 'hose
with "=rated M3" s may be sent to foreign universities for short duration courses of
the length of 6; days to > months! which are likely to be specialiGed in project
management! operations management! 1( management! Strategic management and
financial management . 'hese recommendations are specifically relevant because
,(-,&) is expected to compete on the basis of human resources.
Or=aniFational Restructurin=
6. #rganiGational structure is designed keeping in mind how to divide the overall
organiGational task into subcomponents and then reintegrating so that there is
forward movement towards accomplishment of the vision and mission and
corporate objectives. In sum it helps multiple people work in cooperative
manner rather than working at cross purposes. 'he functional structure creates
high level of specialiGation and provides the basis of competence on the
functional axis of the organiGation like supply chain! operations! marketing <
sales and customer service. 'he staff functions like! 1(! (<+! procurement
and strategy provides the support to functional line managers. 1owever it
results in functional silos and very high information overload at the staff
7. 'he divisional structure helps reduce the information overload and treats the
divisional heads as $%#s of their own business. Strategic < financial responsibility
rests with the divisional heads who report to the corporate $%# and consults the
corporate top functional experts. 'his structure provides for every division all the
functional expertise as is the case with functional structure. 'here is duplicity of
functions in this structure and thus raises the cost of organiGational structure.
1owever the benefits overweigh the costs because of clear accountability and profit
responsibility. In sum! each plant should be converted into a profit centre with rofit
and loss responsibilities.
>. So far ,(-,&) had been following the functional structure and speed of
decision making was hampered! reducing the strategic thinking time for top
executives. It is important to mention that many of the top management/s positions
were not filled up because of logjam in the promotion policy. 'he operating role and
project roles were almost confounded resulting in poor accountability! slow speed of
decision making and poor monitoring creating poor economic performance. +irector
technical was looking after the whole technical areas and +irector 1( looking after
the whole organiGation along with director finance and three of them reporting to
$M+. It was a deceptively simple structure but the study reveals that speed of action
had been very slow derailing the project work beyond any expected time periods.
Some functions were underemphasiGed in the structure like vigilance < "udit!
$ommercial and regulatory which in the %<* proposed corporate structure capture
the importance from Governance perspective.
8. 'he 1ead $orporate strategy should also have to be designated as +irector C
Strategy to highlight the importance and quantum of work involved and likely to be
involved in assisting the divisions 0plants4 in strategy formulation. 'he subunits below
director should have an environment scanningM intelligence group which collect
internal and external information and which should report to the +irector Strategy. It
should have committee members drawn from ("G"'I! 3usiness %xcellence
Initiatives! and I'! beside two members from $orporate and 3usiness Strategy areas.
Similarly all other corporate functions should be headed by +irectors 0rojects!
#perations! 2inance and 1(4. 'hese functions should have committees in each area
drawn from sub=units reporting to them. 'hese committees meet every bi=weekly to
appraise the progress in each area. 3esides! it is proposed to have top executive cross=
functional team consisting of 8 corporate +irectors and ; lant directors each
representing the plants. 'his committee should meet every month to monitor the
progress! trouble shoot difficulties and bottlenecks.
;. ?e also propose a replica of the executive team at the plant level involving
officials of various specialiGations at plant level. 'he 3usiness strategies < plant level
operational strategies should be developed at plant level under the leadership of
+irector of each plant.
F. 'he decision of unit closer in the plant! (<M and up rating or diversification will
vest with the $M+ of &igam assisted by the top executive team. 1owever the
proposal can be mooted by plant directors! which can be reviewed! whetted by the
corporate executive team. 2inally these proposals could be submitted to the 3#+.
'his committee can have special invitees from auditMvigilance etc if the need so arise.
'he +irectors of the lants likewise have top plant management team representing
functional plant heads.
Board o1 3irectors
6. 'he role of 3oard of +irectors is to provide the direction and guidance to the
top management! whet investment decisions 0closure! sell off! joint ventures!
new plantM unit additions4! and ensure transparent operations! monitor statutory
obligation compliance! and maintain ethical standards so that the shareholder
interests and other stakeholder interests are protected and equity is maintained.
'he two main areas of concern in the 3#+ are the composition of 3oard
members representing different interests and maintaining strategic direction of
the corporation. Since the 3#+s have less time to look into the details of each
decision the 3oard $ommittees become essential toll for governance of the
Board o1 3irectors
$urrently there are 6: members of the 3oard as given belowK
'2 6M3 UPR4UN!
)2 ?M3 UPP6!
,2 E3 -NR/ NTP6
7. It is clear that consistent with the , Government ownership most of the
3oard members are from the government of ,ttar radesh. 1owever! it can
become counterproductive as many of these members are reprinted on large
number of 3oards and do not have adequate time! inclination and expertise to
guide the future direction of the corporation notwithstanding how brilliant the
persons may have been. #ften representatives are sent for 3oard meetings
with little value addition from the real board members who are ex=offcio
members. 'he board members also bring with them relationships with the
outside world beside the variegated expertise. 3esides! to bring more
transparency it is suggested that outside independent board members be
brought into the 3oard! considering that the corporation may go public in
future and market will accept less government role at the board level and more
transparency in operations.
?e propose the following 3oard constitution.
'2 6M3 UPR4UN!
(2 3irector OBerations UPR4UN!
02 3irector Finance UPR4UN!
)2 3irector Strate=y UPR4UN!
,2 3irector 5R UPR4UN!
;2 ?M3 UPP6!
*2 Secretary -Finance/ GOUP
C2 PrinciBal Secretary -Ener=y/ GOUP
D2 E3 -NR/ NTP6
'+2 IndeBendent 3irector= Nominee o1 the GOUP -6ould $e 1rom IIM/
''2 IndeBendent 3irector L 6hairman Nominee -could $e 1rom IIT #ith
electrical en=ineerin=/
'(2 IndeBendent 3irector. 6hairman Nominee -Private individual as an eEBert in
>. 'he board should follow company law based governance practices about meetings!
reporting etc. Since it is expected that government of , may be less willing to put
equity! the outside sources like capital markets ! beside tapping 2$ and banks! it is
imperative that disclosure and transparency norms be followed based on world=wide
good governance perspectives. 'herefore there is a need to constitute following 3oard
level committees.
6. 2our member 3oard audit committee C examines probity of financial decision
7. 2our member committee on $ompensation of top management
>. 'hree member 1uman (esource Management $ommittee
8. 2our member $ommittee on %thics! Social responsibility and %nvironment
'hese committees by necessity should have senior executive from inside and one
expert from outside 0independent director4.
Investment mana=ement
'he investment management require that the per unit revenue is higher than per unit
cost and cover the cost of capital. In the past the corporations and been making losses
with accumulative losses amounting to almost (s. ;A;.9 crore as on >6st March 7:6:
and almost >F: days receivables incurring severe interest losses besides operational
losses. 3oth these losses must be brought under control. In addition the corporation
has to worry about the funding required for sustainability and growth.
Financial Bro>ections
$onsidering the costs incurred in the current projects of ,(-,&)! the average cost
per megawatt for ,(-,&) is calculated.
6. 1owever this cost is significantly higher than those incurred by private sector
and other governments. "dani/s super critical power plant 0Mundra 'S
5utch4 in Gujarat has an estimated cost of (s. 8.>; $rM M? whereas %ssar has
been able to achieve (s. 8.:8 $rM M? for Salaya ' 0Hamnagar4 by
procuring 3'G from 1arbin ower %quipment $ompany! $hina. ?e make
below the financial projections required for future investments.
EmBloyee <el1are
%mployees are the greatest resource of any organiGation! especially if they are
considered the source of competitive advantage. 'he developmental needs of
employees on the job must be seriously considered and their socio=psychological
needs beside physical comfort. 'he working
%nvironment should have haGard free and physically comfortable working ambience
especially in plants. Medical facilities! recreation needs and religious and social needs
may be considered with very clear policy and programmes.
6orBorate Social ResBonsi$ility
6. Most organiGations including power utilities have incorporated some polices and
rogrammers/ to respond to stakeholders other than those directly involved in
business and the physical environment. ,(-,&) does not seem to have any
explicit policy or program or at the most reactive response. 'here is a need to be pro=
active in this important area of corporate involvement. #ne issue is the displacement
of people due to acquisition of land or water accessibility to the plant or railway line
to carry raw material and waste. 'he other is the impact of operations on the quality
of air and water and on the lives of the people! their institutions! social and physical
infrastructure. 'he third is the yawning gap between the national objectives in the
areas of education! health and employment.
(esearch in common parlance refers to a search 1or "no#led=e2
"ccording to 'he "dvanced )earner/s +ictionary of $urrent %nglish UResearch is a
care1ul investi=ation or inIuiry esBecially throu=h search 1or ne# 1acts in any
$ranch o1 "no#led=eK2
(esearch is a procedure of logical and systematic application of the fundamentals of
science to the general and overall questions of a study and scientific technique by
which provide precise tolls! specific procedures and technical! rather than
philosophical means for getting and ordering the data prior to their logical analysis
and manipulation.
+ifferent type of research designs is available depending upon the nature of research
project! availability of able manpower and circumstances.
(edman and Mory define research as Ja systematiFed e11ort to =ain ne#
?e all possess the vital instinct of inquisitiveness for! when the unknown confronts
us! we wonder and our inquisitiveness makes us probe and attain full and fuller
understanding of the unknown. 'his inquisitiveness is the mother of all knowledge
and the method! which man employs for obtaining the knowledge of whatever the
unknown! can be termed as (esearch.
Research re1ers to a search for knowledge. It can be defined as a scientific and
systematic search for pertinent information on a specific topic.

It is a way to systematically solve the research problem. It may be understood
as Science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by the researcher in studying his
research problem along with the logic behind them. In general methodology is
an optional framework within which the facts are placed so that the meaning
may be seen more clearly. 'he sources of data shown that designing of a
research plan calls for decision on the data sources are research approaches
0primary and secondary data4 research instruments 0observation survey
experiment4 sampling plan and contact methods 0personal interviews4.
(esearch is a Ufact finding investigation with adequate interpretationV.
'he data serves as the bases for analysis. ?ithout an analysis of factual data no
specific inferences can be drawn on the questions under study. Inferences based on
imagination or guesswork cannot provide correct answers to research questions. 'he
relevance! adequacy and reliability of data determine the quality of a study.
2or the purpose of this present study data from two sources collected namely primary
and secondary data have to be gathered.
(esearch designs used in the specific study includes the followingsK
Identification the statement of problem.
$ollection of company/s specific literature i.e. annual report for the study
period and profile of the company.
Scanning through standard book to understand the theory behind the export
$ollection of information from various journals to understands the industrial
background of the study.
Study period in this case is > years i.e. from 7::D=6: to 7:66=67
In this project +escriptive (esearch has been used.
3escriBtive Research&
'his is kind of research structure which is concerned with describing
the characteristics of the problem. In this way the main purpose of such
a research design is to present a descriptive picture about the marketing
problem on the basis of actual facts. 2or this it is important to obtain
the complete and actual information about the subjects.
It attempts to describe systematically a situation! problem! phenomenon!
service or programme! or provides information about ! say! living condition of
a community! or describes attitudes towards an issue.
+ata refers to the facts! figures and other relevant materials! past < present! serving
as basis for they study < analysis. 'he sources of data are varied. It depends upon the
nature of the study.
It is first hand data! which is collected by researcher itself. rimary data is collected
by various approaches so as to get a precise! accurate! realistic and relevant data. 'he
main tool in gathering primary data was investigation and observation. It was
achieved by a direct approach and observation from the officials of the company.
Secondary data will be collected from the financial reports issued by the company.
Much information will be collected from companies/ website where the financial
report is published and some information from newspaper and magaGines.
'his is related to collect the required information about the study. My source of
information is the data available with the company by ongoing through the annual
reports. 'he study basically relies on secondary data supplied by the company. 'he
primary data used for this study consists of informal discussion! interview with the
account officer of the company.
'he required data for the study are basically secondary in nature and the data are
collected fromK
'he audited reports of the company.
I&'%(&%' C which includes required financial data collected form
,(-,&) official website i.e. www.uprvunl.org and some other websites on
the internet for the purpose of getting all the required financial data of the
company and to get detailed knowledge about ,(-,&) for the
convenience of study.
+irect interaction with "ccounts #fficer 0Mr2 3E4EN3RA %UMAR
S5U%!A4 and employee of the $%&'(") "*M%&' "&+ "$$#,&'
+I-ISI#& department of the company.
'he valuable cooperation extended by staff members of $entral ayment and
"ccount +ivision department of the company #bra ower lant! contributed
a lot to fulfill the requirements in the collection of data in order to complete
the project.
'he data received are tabulated and analyGes for logical statement using statistical.
Methods like Microsoft %xcel etc.
Most of analyGed data are converted to percentage to facilitate easily interpretation of
data and the same is analyGed and interpreted in the form of table and represented in
the form of graph.
"fter analyGing the M) accounts of ,(-,&) for the financial year 7:6:=66! 7::D=
6: and compiling the general expenses! can be seen in the below shown table.
L 2()(*))
Generation O1
00 70.6765 35,692,415,084 70.7731 0.0965
EmBloyee 6ost
0 9.9732 4,186,493,579 8.3012 -1.6720
ReBairs And
0 7.9629 2,706,074,277 5.3657 -2.5971
and General
EEBenses 894,447,260.00 1.8716 754,754,555 1.4965 -0.3751
Provisions O1 Bad
9 3ou$t1ul 3e$ts 39,335,216.00 0.0823 157,392,195 0.3120 0.2297
Interest 9
Financial 6har=es
0 5.9526 2,988,769,277 5.9263 -0.0263
0 3.4805 3,946,267,031 7.824 4.3443
00 100 50,432,165,998 100 0
2rom the above mentioned data we can find some of the basic differences bMw the two
consecutive years! which areK
'2 %mployee cost has been increased by '2;*(M. ?hich means employees
are been paid more and there are more recruitments and retirements
made in the current year.
(2 (epair and maintenance cost is been increased by (2,D*M it implies
that the machines had completed their life time < requires more
maintenance day by day.
02 It is been analyGed that the depreciation cost had been decreased by
Rs2 ((C(D*(0+;2++ by )20))0M which clearly shows that the
fixed assets have been recovered to a great extent.
)2 %mployee cost had been noticed an increase of '2;*(M which
indicates clearly that there are more recruitments and retirements in
comparison with the previous financial year.
&'$ )imited 0formerly &ational 'hermal ower $orporation4 is the largest Indian
state=owned electric utilities company based in &ew +elhi! India. It is listed in 2orbes
Global 7::: for 7:67 ranked at >>9
in the world. It is an Indian public sector
company listed on the 3ombay Stock %xchange in which at present the Government
of India holds A8.;B 0after divestment of the stake by Indian government on 6D
#ctober 7::D4 of its equity. ?ith an electric power generating capacity of 86!6A8
M?! &'$ has embarked on plans to become a 67A!::: M? company by 7:>7. It
was founded on 9 &ovember 6D9;.
#n 76 May 7:6:! &'$ was conferred Maharatna status by the ,nion Government of
&'$@s core business is engineering! construction and operation of power generating
plants and providing consultancy to power utilities in India and abroad.
'he total installed capacity of the company is 86!6A8 M? 0including H-s4 with 6F
coal=based and seven gas=based stations! located across the country. In addition under
H-s 0joint ventures4! six stations are coal=based! and another station uses
naphthaM)&G as fuel. 3y 7:69! the power generation portfolio is expected to have a
diversified fuel mix with coal=based capacity of around >6!A;; M?! >!D;; M?
through gas! 6!>7A M? through hydro generation! about 6!8:: M? from nuclear
sources and around 6!::: M? from (enewable %nergy Sources 0(%S4. &'$ has
adopted a multi=pronged growth strategy which includes capacity addition through
green field projects! expansion of existing stations! joint ventures! subsidiaries and
takeover of stations.
&'$ has been operating its plants at high efficiency levels. "lthough the company
has 6DB of the total national capacity it contributes 7DB of total power generation
due to its focus on high efficiency. &'$/s share at >6 Mar 7::6 of the total installed
capacity of the country was 78.;6B and it generated 7D.FAB of the power of the
country in 7::AC:D. %very fourth home in India is lit by &'$. "s at >6 Mar 7:66
&'$@s share of the country@s total installed capacity is 69.6AB and it generated
79.8B of the power generation of the country in 7:6:C66. &'$ is lighting every
third bulb in India. 69:.AA3, of electricity was produced by its stations in the
financial year 7::;C7::F. 'he &et rofit after 'ax on >6 March 7::F was ;A.7:7
billion. &et profit after tax for the quarter ended >: Hune 7::F was 6;.;7A billion!
which is 6A.F;B more than that for the same quarter in the previous financial year. It
is listed in 2orbes Global 7:::! for 7:66 ranked it >8A
in the world.
L ,
Generation O1
Po#er -Fuel/
Generation O1
Po#er -Fuel/
EmBloyee 6ost
24,124.00 6.2759 -3.70
administration 9
other eEBenses
9 other
20,940.00 5.4475 -4.39
Interest 9
6har=es 2,84,46,65,323.00
Interest 9
18,089.00 4.7058 -1.25
Provisions O1
Bad 9 3ou$t1ul
Provisions O1
Bad 9
109.00 0.0283 -0.05
3.48 3eBreciation 26,501.00 6.8942 3.41
3,84,391.00 100 0.00
2rom the above mentioned data we can find some of the basic differences bMw the
performance of two companies! which areK
6. 'he fuel cost as a percentage of total cost of ,(-,&) is ,2D*M percentage
point less than &'$. 1ere from the diagram it is evident that the total percent
of fuel cost out of total cost of ,(-,&) is *;2;CM where the fuel cost of
the total cost of &'$ is *;2;)*M2
7. &'$ is more benefitted in employee cost expense as ,(-,&) has more
cost expense.
>. Generation! administration < other expenses of ,(-,&) are just double of
&'$@s expense. ?hich concludes that both the human as well as mechanical
machinery of ,(-,&) is less effective as compared to &'$W
8. In such case depreciation charged by &'$ Is double than ,(-,&) which
should be increased as it would lead to help in adapting new technology and
reduce the cost of production.
2rom the above displayed diagrams showing the expenses of the two concerns it can
be concluded thatK
'he Generation! administration < other expenses as a percentage of total cost
of ,(-,&) is )20DM percentage point more than &'$. 1ere from the
diagram it is evident that the total percent of Generation! administration <
other expenses out of total cost of ,(-,&) is D2C0M where the Generation!
administration < other expenses of the total cost of &'$ is ,2))M2
'he %mployee $ost as a percentage of total cost of ,(-,&) is 02*+M
percentage point more than &'$. 1ere from the diagram it is evident that the
total percent of %mployee $ost out of total cost of ,(-,&) is D2D*M where
the %mployee $ost of the total cost of &'$ is ;2(*,DM which indicates that
might there are some of the old employees and some of the pensioners which
draws high salaries! resulting in much burden on the overall manufacturing
cost for the company.
'he Interest < 2inancial $harges as a percentage of total cost of ,(-,&)
is '2(,M percentage point more than &'$. 1ere from the diagram it is
evident that the total percent of Interest < 2inancial $harges out of total cost
of ,(-,&) is ,2D,M where the Interest < 2inancial $harges of the total
cost of &'$ is )2*+,CM which shows that the ,(-,&) have more credit
to be paid to its creditors as compared to &'$.

Gujarat State %lectricity $orporation )imited 0GS%$)4 was incorporated in "ugust
6DD> and is registered under the $ompanies "ct! 6D;F with the objectives to initiate a
process of restructuring of ower Sector and to mobiliGe resources from the market for
adding to the generating capacity of the State and improving the quality and cost of
existing generation. 'he $ompany was promoted by erstwhile Gujarat %lectricity
3oard 0G%34 as it/s wholly owned subsidiary in the context of liberaliGation and as a
part of efforts towards restructuring of the ower Sector. 'he Memorandum and
"rticles of "ssociation of GS%$) envisage a wide spectrum of activities to improve
the electricity infrastructure of Gujarat. GS%$) has initiated its activities in the field
of Generation of ower.
Installed capacity of the State has increased from >6; M? in 6DF:=F6 to 6>688 M?
in 7:6:=7:66. er capita consumption of power in the State of Gujarat in 7::D=6: was
68D6 ,nits
'he Government of Gujarat 0GoG4 has also given to the GS%$) the status of
Independent ower roducer 0I4 with approval to undertake new power projects.
'he $ompany commenced its commercial operation in the year 6DDA. 1owever! the
operations of GS%$) were limited to ower Stations units Gandhinagar ;! ?anakbori
9! ,tran G3S < +huvaran $$ till the complete unbundling of erstwhile G%3 was
undertaken! i.e. up to >6st March 7::;.
"s a part of the reform process! the Government of Gujarat has unbundled the various
functions of G%3. "s a result of this unbundling! Gujarat State %lectricity $orporation
)imited 0GS%$)4 has taken up the responsibility of electricity generation. %lectricity
'ransmission has been entrusted to the already existing company = G%'$#.
+istribution network in the state has been split up among four distribution companies!
which cater to the northern! central! southern! and western parts of the state
respectively. "ll these companies have been structured as subsidiaries of a holding
company! Gujarat ,rja -ikas &igam )imited 0G,-&)4. G,-&) is also the single
bulk buyer in the state as well as the bulk supplier to distribution companies. It will
also carry out the trading function in the state.
T ,
Generation and
Other cost
Generation and
Other cost 6,18,064.42 80.865 10.13
EmBloyee 6ost
administration 9
other eEBenses
EmBloyee 6ost
9 other
eEBenses 45,380.49 5.937 -13.89
Interest 9
6har=es 2,84,46,65,323.00
Interest 9
6har=es 42,907.19 5.613 -0.34
3.48 3eBreciation
57,955.23 7.582 4.10
7,64,307.33 100 0.00
2rom the above mentioned data we can find some of the basic differences bMw the
performance of two companies! which areK
'2 'he generation and other cost as a percentage of total cost of ,(-,&) is
'+2'0M percentage point less than GS%$). 1ere from the diagram it is
evident that the total percent of fuel cost out of total cost of ,(-,&) is
*+2*0M where the fuel cost of the total cost of GS%$) is C+2C;,M2 3ut
,(-,&) should be more conscious in reducing more generation cost by
adapting modern techniques.
(2 +ue to the time scale promotions of unskilled old staff on higher positions
there can be noticed a huge difference of '02CDM in %mployee $ost!
Generation! administration < other expenses! which effects a lot on the overall
02 ?e can easily notice that the depreciation cost is )2'+M less of ,(-,&) in
comparison with GS%$) hence it is recommended to ,(-,&) that to make
some efforts to increase the reserves for depreciation as it would lead to help
in adapting new techniques of production.
'he ower Generating company of "ndhra radesh
Installed $apacity AD78.D M?
'hird )argest ower ,tility in India
"G%&$#@s 1ydel Installed $apacity Second 1ighest in India
"ndhra radesh ower Generation $orporation )imited is one of the pivotal
organiGations of "ndhra radesh! engaged in the business of ower generation. "part
from operation < Maintenance of the power plants it has undertaken the execution of
the ongoing < new power projects scheduled under capacity addition programme and
is taking up renovation < moderniGation works of the old power stations.
"G%&$# came into existence on 7A.67.6DDA and commenced operations from
:6.:7.6DDD. 'his was a sequel to Governments reforms in ower Sector to unbundle
the activities relating to Generation! 'ransmission and +istribution of ower. "ll the
Generating Stations owned by erstwhile "S%3 were transferred to the control of
'he installed capacity of "G%&$# as on >6.67.7:66 is AD78.D M? comprising
;:D7.;: M? 'hermal! >A7D.8: M? 1ydro ! 7 M? ?ind power stations and !6.:
M? hoto -oltaic $ell based Solar ower plant !contributes about half the total
%nergy (equirement of "ndhra radesh. "G%&$# is third largest power generating
utility in the $ountry next to &'$ and Maharashtra. It@s installed 1ydro capacity of
>A7D.8 M? is the second highest among all power utilities in the $ountry.
"G%&$# has an equity base of (s.76:9 corers and about 66!::: dedicated
employees as on >6.:>.7:66.'he company has an asset base of approximately
(s.79FD: corers.
L ,
O ,
Generation O1
Generation O1
3 54.1008
EmBloyee 6ost
administration 9
other eEBenses
EmBloyee 6ost
administration 9
other eEBenses
4 18.552 -1.34
Interest 9
6har=es 2,84,46,65,323.00
Interest 9
6 15.958 10.01
3.48 3eBreciation 97,718.59 11.389 7.91
2 100 0.00
2rom the above mentioned data we can find some of the basic differences bMw the
erformance of two companies! which areK
'2 'he generation and other cost as a percentage of total cost of ,(-,&) is
';2,CM percentage point more than "G%&$#. 1ere from the diagram it is
evident that the total percent of fuel cost out of total cost of ,(-,&) is
*+2;CM where the fuel cost of the total cost of "G%&$# is ,)2'++CM2
1ence ,(-,&) should make some efforts likewise "G%&$# to decrease
the fuel cost by adapting modern machinery! good quality of coal etc.
(2 Interest < 2inancial $harges of the total cost of ,(-,&) is '+2+'M
percentage point less than "G%&$#. So it can be concluded that , govt.
might had given some extra financial aid to ,(-,&) in comparison with
" govt. So they should try to utiliGe the benefits for the betterment.
02 'he ,(-,&) should try to increase the reserves for depreciation as this
would help the organiGation to adapt new technology and much burden would
not be levied.
2rom the above displayed diagrams showing the expenses of the two concerns it can
be concluded thatK
'he +epreciation cost as a percentage of total cost of ,(-,&) is 02)CM
percentage point less than "G%&$#. 1ere from the diagram it is evident
that the total percent of +epreciation cost out of total cost of ,(-,&) is
02)CM where the +epreciation cost of the total cost of "G%&$# is
''20CDM2 ?hich should be increased as this would help the organiGation to
adapt new technology and much burden would not be levied.
'he Interest < 2inancial $harges as a percentage of total cost of ,(-,&)
is '+2+'M percentage point less than "G%&$#. 1ere from the diagram it is
evident that the total percent of Interest < 2inancial $harges out of total cost
of ,(-,&) is ,2D,M where the Interest < 2inancial $harges of the total
cost of "G%&$# is ',2D,CM which shows that the ,(-,&) have less
credit to be paid to its creditors as compared to "G%&$#. ?hich a good
indication is for the company as compared from the other one.
S2 No Particulars Nuantity
-Rs2 Per
6ost Ber
6urrent :
Material M 2uel
0a4 $oal F7;>:>.9> 6DF7.> 6779:679;> 6.D7 6.AF 6.F>
0b4 2urnace #il 78;7.F7 >A::6 D>7:6>9;.F9 :.6; :.>; :.>7
0c4 1igh Speed
#il 6DF.>6 >6;;> F6D>DA;.>> :.:6 :.:6 :
Total Material :
Fuel 6ost ;(*D,(2* (''(20 '0(;)+C'') (2' (2(( '2D,
( ,tilities
?ater 'reatment
lant 78A>>6 6:D.> 79686997 :.:8 :.:8 :
8 :.67 68FD689: :.:7 :.:8 :.:7
$oal 1andling
lant F7;>:8 66D.6F 98;6>:F7 :.67 :.6; :.:7
Total Utilities
65P/ '';0);0+) +2( +2(0 +2+,
%mployees cost 7:DD;F6D; :.>> :.>> :.86
Stores and
Spares >667>D96 :.:; :.:7 :.:7
(epairs and
Maintenance D96A8>A> :.6; :.7; :.:8
; Insurance FF>9:D : : :
* "sh handling 66A7F:: 7.AD >87679A :.:6 : :
+epreciation or
"mortiGation 7:;6776D: :.>7 :.76 :.6A
#ther lant
#verheads 9>>D6;7FA 6.6; :.8> :.6
#verhead 6>F;7A::7.9 :.76 :.69 :.>
'' Total -' to '+/ (C;+;;D)') )2, 02C; 02+)
'( 6ost o1 Sales (C;+;;D)') )2, 02C; 02+)
2rom the above displayed bar diagrams showing the change in expenses of the
company it can be concluded thatK
It can be seen that there is a gradual decrease of '+2*;M percentage point of
total cost of the coal expense from the year of 7::D=6: to 7:66=67. 'his
clearly indicates that the overall per unit cost of production has been shifted
from coal to the other expenses responsible for production.
'he contribution of furnace oil in the per unit cost of production is been
decreased by *2'*M percentage point of the total cost! from'+2,M of the
percentage point to 020)M percentage point. Indicating on the good use of
coal in the plant.
It has been seen that the #ther lant #verheads as a percentage of total per unit
cost of #3(" is (020CM percentage point more in the year of 7:66=67 as
compared to 7::D=6:.
"fter the analysis of the cost sheet the contribution of direct material cost in per unit cost of
production of the plant gives some idea in the analyGing the of performance of power plant.. Some of the
concluded points areK
'/ 'he expenses of coal had shown a gradual increased after analyGing the contribution of coal in
per unit cost of production. 'his indicates that the quality of coal is in declining stage day by day!
and machines are also not so much effective than previous years.
(/ 2rom the two diagrams it can be noticed that there is an increase in contribution of per unit cost
of production! from Rs2 '2;0 to '2D( but there is a decrease in percentage contribution of total
cost of coal! from ,02;M to )(2CM2
'he environment for OBRA 7A8TPS looks good because of very high demand for
electricity for which deficit would last for next F=9 years. Managing ongoing and new
projects is critical to benefit from the market demand. 'he plant has enough
experience in implementing the project! but the equipment supplies and receivables
had been major concerns.
#ne of the strongest points is the established business and early mover advantage for
OBRA 7A8TPS in the State of ,ttar radesh with deeper technical processes like the
design and developmentE erection and commissioning with very experienced people
with about '0C( M< capacity.
'he very strengths are converting into debilitating liabilities. 'he plant is ageingE the
people have become somewhat complacent with obsolescing skills with increasing
burden of wages and inefficiencies resulting into not so good financial performance.
'he non=cooperative suppliers! increasing competition are threatening the financial
health of the corporation.
'he plant needs to handle some of these critical problems.
I suggest that to reduce monopoly power of suppliers like 31%)! the plant needs to
diversify 3'G supplier base with internationally recogniGed and cheaper vendors
especially from $hina. 'he coal supply chain needs to be further smoothened and
internal project teams are constituted with capableM well trained people in project
management skills and technical capabilities. Sadly the experienced managers and the
top management in spite of being highly committed to the physical and financial
progress have not been able to reach performance levels that were targeted.
'herefore the whole organiGation needs to be revampedK corporate and plant
structures! organiGational cadres! re=allocation of employees to right jobs!
strengthening project management and building new capabilities for larger siGed
projects! get off from up rating unit to new unit at the same premises! except those
unit which can give services at least for next 6; years with )2 above F:B!
benchmarked auxiliary consumption! reduced outages! S1(! cost per unit. 'he
regulator cannot perpetually fund the inefficiently generated power by compensating
with higher tariffs. 'he competitive pressure will be felt immediately after the supply
deficit is overcome.
%ach of the ten areas recommended must be worked upon if the management needs to
reach its desired vision and meet it mission commitmentsK
Managing dynamic environment!
3alancing business portfolio!
Smoothening supply chain!
#perations including project management!
1uman resource management!
#rganiGational restructuring!
3oard of +irectors! and investment management!
%mployee welfare and corporate social responsibility.
'here is need to establish the environmental intelligence group assisting both in
operations! strategic areas like new investment! divestment! closure etc to help make
more discipline decisions.
Balancin= $usiness Bort1olio
"lthough #<M! (<M and refurbishment will remain important areas given more
than average aging plants! however the investment should shift towards new projects
due to better economy and better market control. (etirement of many aging units may
be a wise strategy.
Smoothenin= SuBBly chain
'he most critical aspect here is the 3'G and 3# timely supplies. +iversified vendor
base will help timely commissioning of projects. In case of contractual failures
penalty clause should be enforced on undue delays. 'he coal and oil supply chains
must be studied for better efficiencies and environmental compliance perspective.
OBerations includin= Bro>ect mana=ement
1ere the most critical area is to build critical project management competencies and
%mpowered structural positions of project management teams. #perational
benchmarks as targets are pursued vigorously through well designed organiGational
structures! clear accountability and incentive systems. %( and I' project should be
implemented at faster speed to derive returns from this investment.
5uman resource mana=ement
'his being the only source of competitive advantage enough resources must be
diverted towards training and development with at >B budget of revenue dedicated to
training and development for the employees. 'he cadre restructuring should be done
keeping in mind that the internal environment is enabling and empowering with
adequate responsibility and accountability.
Investment mana=ement
%mphasis should be placed on profitability and more internal generation of funds for
investment in future projects! without perpetually depending on the , Government.
'his is necessary especially in future if capital markets were to be tapped. 3y 7:69 it
should acquire financial autonomy. It is necessary the government continue funding
until then and it should issue bonds to fund investment against receivables from its
EmBloyee <el1are
%mployees are the greatest resource of any organiGation! especially if they are
considered the source of competitive advantage. 'he developmental needs of
employees on the job must be seriously considered and their socio=psychological
needs beside physical comfort. 'he working environment should have haGard free and
physically comfortable working ambience especially in plants. Medical facilities!
recreation needs and religious and social needs may be considered with very clear
policy and programmes.
+t is suggested that if the abo"e areas are successfully na"igated the plant has the
potential to meet its "ision and mission spirit(
2ollowing sources have been sought for the preparation of this report
andey IM C 2inancial Management 0 -ikas! 7::8! D
(avi M. 5ishor C 2inancial Management 0'axman! 6
5othari! $.(.! Research Methods-Methods and Techniques,6DAD!&ew
+elhiK?iley %astern )imited!8A>;M78 "nsari (oad! +aryaganj! &ew +elhi
66: ::F.
andey I M (esearch Methodology Methods < 'echniques 0&ew "ge
International ublishers! 7::8! 7
(2 +irect interaction with "ccounts #fficer 0Mr2 3E4EN3RA %UMAR
SU%!A4 and employee of the $%&'(") "*M%&' "&+ "$$#,&'
+I-ISI#& department of the company.
&0 1E23-TE3*