THE MARKET FOR THERMAL POWER IN INDIA

SUBMITTED BY Nikhil Annaldasula Roll: 03 Under the guidance of Prof. P.Mohan

DEPARTMENT OF MANAGEMENT STUDIES SHAH AND ANCHOR KUTCHHI ENGINEERING COLLEGE 2012

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ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude and indebtedness to Prof.P.Mohan Department of Management Studies, Shah and Anchor Kutchhi Engineering College for introducing the present topic and for his inspiring guidance, constructive criticism and valuable suggestions throughout the project work.

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CONTENTS
Sr.No.
1 2 3

Title
INTRODUCTION AND OVERVIEW LIST OF THERMAL POWER PLANTS STATISTICS OF MAJOR COMPANIES (i) Description (ii)Balance Sheet (iii) Financials (iv) Plans for increasing capacity (v) Market Potential INTERPRETATION THE FUTURE SCENARIO OF OVERALL MARKET REFERENCES

Page No.
04 05

06-35

4 6 7

36 37 38

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THE MARKET FOR THERMAL POWER IN INDIA

INTRODUCTION: Thermal generation is the process of generating electricity from heat. Heat is a form of energy. Heat energy that is turned into electricity can be made in many ways. It can be produced by burning fuels such as coal, oil, gas or wood. It can also be taken from steam from a geothermal field, or created by nuclear reactions. Overview of Indias Power Sector: India's power market is the fifth largest in the world. The power sector is high on India's priority as it offers tremendous potential for investing companies based on the sheer size of the market and the returns available on investment capital.

India currently has an installed capacity of 1, 70,229 MW of power, with the projected capacity of 1, 94,703 MW by March 2012 and 3, 01,173 MW by the 12thFive-Year Plan. The current energy deficit stands at 8.6 percent and the peak
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deficit at 11.1 percent. To achieve a Gross Domestic Product (GDP) growth of 8-9 percent, power demand is expected to grow at the same pace and the power deficit expected to continue. Coal is projected to remain the dominant fuel for power generation in the country.

LIST OF MAJOR THERMAL POWER UTILITIES IN INDIA: Tata Power NTPC (National Thermal Power Corporation)

Reliance Power Adani Power Lanco Infratech ABB Ltd Cesc Ltd DLF Power Ltd DPSC Ltd Gujarat Industries Power Company Ltd GVK Power and Infrastructure Ltd HBL Power systems Ltd Indowind Energy Ltd

Jindal India Thermal Power Ltd

Kalpataru Power Transmission Ltd KSK Energy Ventures Ltd National Wind and power Corporation Ltd
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 Power Grid Corporation of India Ltd PTC India Ltd Suryachakra Power Corporation Ltd Neyveli Lignite Corporation

SJVN

(Satluj Jal Vidyut Nigam Limited)

NPCIL (Nuclear Power Corporation of India) CLP Power India Pvt Ltd.

Torrent Power

STATISTICS AND RELATIVE MARKET CAPITALISATION:

TATA POWER Year of establishment: 1919 Sector: Private Description: Tata Power generates about 3120 MW of power from energy sources like thermal (coal, gas, oil), hydroelectric, solar, wind and geothermal energy. The thermal power stations of the Company are located at Trombay in Mumbai, Jojobera in Jharkhand, Haldia in West Bengal, and elgaum in Karnataka. The Company has successfully commissioned 120 MW Haldia (West Bengal), 120 MW Power House (Jamshedpur), 120 MW Unit 5 at Jojobera and 250 MW Unit 8 at Trombay to increase its generation capacities. Some of its new projects under implementation are 4000 MW Ultra Mega Power Project at Mundra, 1050 MW Maithon, 1600 MW Coastal Maharashtra Project and more.
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Balance Sheet: Particulars Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 12 Months 197.92

Liabilities 12 Months 12 Months 12 Months 12 Months Share Capital 237.33 237.33 Reserves & 11,002.66 10,295.03 Surplus Net Worth 11,239.99 10,532.36 Secured Loans 4,753.91 4,105.38 Unsecured Loans 2,235.37 1,858.04 TOTAL 18,229.27 16,495.78 LIABILITIES Gross Block 10,518.92 10,010.80 (-) Acc. 4,735.98 4,258.06 Depreciation Net Block 5,782.94 5,752.74 Capital Work in 1,469.50 476.21 Progress. Investments. 7,939.91 6,688.62 Inventories Sundry Debtors Cash And Bank Loans And Advances Total Current Assets Current Liabilities Provisions 629.57 1,974.32 837.29 2,571.53 6,012.71 2,273.30 702.49 589.36 1,976.31 1,277.64 2,205.44 6,048.75 1,767.97 702.57 221.44 8,422.06 8,643.50 3,931.71 1,315.35 281.71

7,771.12 5,793.03 8,052.83 5,990.95 2,331.09 1,354.30 752.26 2,321.22

13,890.56 11,136.18 9,666.47 Assets 8,985.86 3,795.32 5,190.54 761.16 5,443.47 644.14 1,587.97 45.50 2,493.82 4,771.43 1,624.05 651.99 6,481.99 6,229.71 3,476.50 3,199.40 3,005.49 3,030.31 1,681.74 781.05

4,430.00 3,570.15 473.61 396.42 1,414.52 1,478.22 28.70 1,367.72 2,039.90 862.68

3,956.73 4,105.04 1,354.03 1,194.67 585.44 631.58

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Total Current 2,975.79 2,470.54 Liabilities NET CURRENT 3,036.92 3,578.21 ASSETS Misc. Expenses 0.00 0.00 TOTAL ASSETS 18,229.27 16,495.78 (A+B+C+D+E)

2,276.04 2,495.39 0.00

1,939.47 1,826.25 2,017.26 2,278.79 1.69 6.17

13,890.56 11,136.18 9,666.47

FINANCIALS: Market Capitalization: 266140.065174 ( Rs. in Millions ) Total Income - Rs. 74377.6 Million ( year ending Mar 2011) Net Profit - Rs. 9414.9 Million ( year ending Mar 2011)

PLANS FOR INCREASING CAPACITY: The utility plans to generate 25,000 megawatts by 2017. A 4,000-megawatt, coal-based plant in Gujarat state is 60 percent complete and the 1,050 megawatt Maithon project in Jharkhand state is 85 percent ready as said by Ratan Tata.

The challenge - Tata Power's target comes amid a changing corporate environment more aligned to green issues, rising energy costs and increased opposition to nuclear power in the aftermath of the Fukushima disaster.

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POTENTIAL: According to the company, high GDP growth, power shortages, rising per capita consumption and projected capacity addition provide large growth potential in the power sector.

Tata Power was ranked 5th for its continuous efforts to transform the 90year old power utility through a combination of cost reduction, steady growth and change in attitude into a more consumer-friendly place in a highly regulated environment.

NTPC Year of establishment: 1975 Sector: Public Description: NTPC's core business is engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad. It is India's largest power company to accelerate power development in India.
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Presently, NTPC generates power from Coal and Gas. With an installed capacity of 30,144 MW, NTPC is the largest power generating major in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution. With an increasing presence in the power value chain Balance sheet: Consolidated Balance Sheet ------------------- in Rs. Cr. ------------------Mar '11 12 mths Sources Of Funds Total Share Capital 8,245.46 Equity Share Capital 8,245.46 Share Application 0.00 Money Preference Share Capital 0.00 Init. Contribution Settler 0.00 Preference Share 0.00 Application Money Employee Stock Opiton 0.00 Reserves 59,835.58 Revaluation Reserves 0.00 Networth 68,081.04 Secured Loans 17,426.40 Unsecured Loans 34,182.91 Total Debt 51,609.31 Minority Interest 485.05 Policy Holders Funds 0.00 Group Share in Joint 0.00 Venture Total Liabilities 119,690.35 Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

8,245.46 8,245.50 8,245.50 8,245.50 8,245.46 8,245.50 8,245.50 8,245.50 0.00 0.00 0.00 0.00 0.00 54,058.16 0.00 62,303.62 15,376.43 30,382.94 45,759.37 278.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00 49,162.10 0.00 57,407.60 12,292.80 28,154.60 40,447.40 166.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 44,617.40 0.00 52,862.90 10,438.80 21,504.70 31,943.50 124.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 40,467.00 0.00 48,712.50 9,358.00 18,318.20 27,676.20 47.80 0.00 0.00

108,062.99 97,855.00 84,806.40 76,388.70

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Mar '11 12 mths Application Of Funds Gross Block 78,999.71 Less: Accum. 34,346.30 Depreciation Net Block 44,653.41 Capital Work in 45,065.42 Progress Investments 8,357.33 Inventories 3,910.83 Sundry Debtors 8,399.87 Cash and Bank Balance 393.34 Total Current Assets 12,704.04 Loans and Advances 7,874.79 Fixed Deposits 17,466.49 Total CA, Loans & 38,045.32 Advances Deffered Credit 0.00 Current Liabilities 13,110.41 Provisions 2,835.67 Total CL & Provisions 15,946.08 Net Current Assets 22,099.24 Minority Interest 0.00 Group Share in Joint 0.00 Venture Miscellaneous Expenses 0.00 Total Assets 120,175.40 Contingent Liabilities Book Value (Rs)

Mar '10 12 mths

Mar '09 12 mths

Mar '08 12 mths

Mar '07 12 mths

71,331.51 64,601.70 55,512.10 50,971.20 32,722.64 29,775.50 27,486.80 25,216.60 38,608.87 34,826.20 28,025.30 25,754.60 37,877.94 31,069.20 25,765.30 20,410.20 11,777.61 3,532.96 7,080.81 702.38 11,316.15 6,548.71 15,350.63 11,696.00 3,361.60 3,818.90 322.50 7,503.00 8,032.30 16,928.00 13,447.00 2,751.20 3,172.70 489.00 6,412.90 5,031.30 14,871.50 15,142.80 2,589.90 1,380.60 766.90 4,737.40 5,153.80 12,931.20

33,215.49 32,463.30 26,315.70 22,822.40 0.00 9,987.63 3,150.33 13,137.96 20,077.53 0.00 0.00 0.00 8,719.20 3,314.30 12,033.50 20,429.80 0.00 0.00 0.00 6,215.70 2,407.00 8,622.70 17,693.00 0.00 0.00 0.00 5,977.70 1,715.80 7,693.50 15,128.90 0.00 0.00

0.00 0.00 0.00 0.00 108,341.95 98,021.20 84,930.60 76,436.50

40,668.38 47,057.13 66,130.10 34,526.60 7,270.00 82.57 75.56 69.62 64.11 59.08

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FINANCIALS: Market capitalization: 1472639.94184 (Rs. in Millions) Total Income - Rs. 574636.1 Million (year ending Mar 2011) Net Profit - Rs. 91025.9 Million (year ending Mar 2011)

PLANS FOR INCREASING CAPACITY:

Coal Mining: In a major backward integration move to create fuel security, NTPC has ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route...

During the XII Plan, the company is planning to increase its capacity with the 4,000-MW Kudgi project in Karnataka and a 4,000 MW plant at Pudimadaka, near Visakhapatnam. It also has plans to further increase its capacity with a 500 MW unit at Simhadri near Visakhapatnam, two units of 650 MW at Ramagundam in Andhra Pradesh and 1050 MW at Kayamkulam in Kerala. NTPC is also planning to increase capacities with three 500 MW units at Vallur. By 2032, NTPC is looking to take its overall power generation capacity to 1, 28,000 MW.

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POTENTIAL: At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others.

RELIANCE POWER
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Year of establishment: 1995

Sector: Private

Description: Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a portfolio of over 35,000 MW of power generation capacity, both in operation as well as capacity under development. The company has 600 MW of operational power generation assets. The projects under development include seven coal-fired projects to be fueled by reserves from captive mines and supplies from India and elsewhere: two gasfired projects to be fueled primarily by reserves from the Krishna Godavari Basin (the "KG Basin") off India's east coast: and seven hydroelectric projects, six of them in Arunachal Pradesh and one in Uttarakhand.

Balance Sheet: Balance Sheet ------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 Mar '07 12 mths 12 mths 200.04 200.04 0.00 0.00 0.02

Sources Of Funds Total Share Capital 2,805.13 2,396.80 2,396.80 2,259.95 Equity Share Capital 2,805.13 2,396.80 2,396.80 2,259.95 Share Application Money 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 Reserves 13,091.44 11,669.24 11,396.01 11,282.72

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Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

0.00 0.00 0.00 0.00 0.00 15,896.57 14,066.04 13,792.81 13,542.67 200.06 0.00 0.00 0.00 0.00 0.00 1,554.05 0.00 0.00 0.00 0.00 1,554.05 0.00 0.00 0.00 0.00 17,450.62 14,066.04 13,792.81 13,542.67 200.06 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 81.16 2.40 78.76 55.30 7,213.04 0.00 0.00 8.15 8.15 6,656.41 90.06 6,754.62 12 mths 78.18 1.58 76.60 55.84 6,282.71 0.00 0.00 14.37 14.37 7,407.58 0.06 7,422.01 12 mths 12 mths 67.41 1.06 66.35 61.14 8,489.75 0.00 0.00 361.11 361.11 4,988.93 0.05 5,350.09 67.27 1.00 66.27 53.57 41.28 0.00 2.25 0.72 2.97 40.68 0.05 43.70 0.00 3.53 1.25 4.78 38.92 0.00 200.04 9.03 10.00

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

96.53 11.30 85.23 58.86 8,578.32 0.00 12.20 17.20 29.40 7,599.92 1,217.71 8,847.03

0.00 0.00 0.00 0.00 115.51 33.60 43.05 423.86 3.33 2.08 1.30 0.79 118.84 35.68 44.35 424.65 8,728.19 6,718.94 7,377.66 4,925.44 0.00 0.00 0.00 0.00 17,450.60 14,066.04 13,792.81 13,542.68 2.90 56.67 0.00 58.69 8.13 57.55 8.57 59.92

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FINANCIALS:

Market Capitalization: 361580.8014674 (Rs. in Millions) Total Income - Rs. 4715.286856 Million (year ending Mar 2011) Net Profit - Rs. 2745.461583 Million ( year ending Mar 2011)

PLANS FOR INCREASING CAPACITY: Reliance Power, the flagship company of the Anil Ambani group, plans to expand four large coal-fired power projects by 50% to generate an additional 8,000 MW of power, which may be sold at more attractive merchant rates, company sources said.

The company will scale up three ultra mega power projects of 4,000 MW each at Sasan, Krishnapatnam, and Tilaiya. Similarly, it will expand the Chitrangi plant in Madhya Pradesh, for which Reliance Power plans to use coal from mines dedicated to the Sasan project.

The company aims to commission the first unit of 660 MW in Sasan in November 2012 and one new unit every subsequent quarter. The entire project of 6,000 MW in Sasan will be fully commissioned by December 2014. Similarly, the first unit of 660 MW in Krishnapatnam will be commissioned in September 2013 and it will be fully commissioned by December 2015.

POTENTIAL: With large scale involvement in power sector Reliance Energy has the advantage/potential to enter renewable energy sector using Fuel Cell technology, as it is the most promising renewable source of energy. Moreover the company
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will have the first mover advantage as well as it can utilize the sops being provided by GOI. ADANI POWER Year of establishment: 1996

Sector: Private

Description: Adani, a conglomerate with a formidable presence in multiple businesses across the globe, has entered the power sector to harbinger a power full India, by generating 20,000 MW of power by 2020. Our comprehension of the criticality in meeting the power requirement and its crucial role in ensuring the energy security of India, spurs us to build Indias largest and one of the worlds top 5 single location thermal power plant in Mundra. Adani Power Limited has commissioned the first supercritical 660 MW unit in the country. Mundra is also the WORLDS FIRST supercritical technology project to have received CLEAN DEVELOPMENT MECHANISM (CDM) Project certification from United Nations Framework Convention on Climate Change (UNFCCC).

Balance Sheet:

Consolidated Balance Sheet

------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths

Sources Of Funds
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Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Init. Contribution Settler Preference Share Application Money Employee Stock Opiton Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Minority Interest Policy Holders Funds Group Share in Joint Venture Total Liabilities

2,180.04 2,180.04 0.00 0.00 0.00 0.00 0.00 4,107.28 0.00 6,287.32 20,413.19 4,089.53 24,502.72 566.26 0.00 0.00 30,790.04 Mar '11 12 mths

2,180.04 2,180.04 0.00 0.00 0.00 0.00 0.00 3,597.98 0.00 5,778.02 10,022.01 548.50 10,570.51 102.34 0.00 0.00 16,348.53 Mar '10 12 mths 2,854.91 67.79 2,787.12 12,769.07 0.01 9.52 256.30 212.38 478.20 961.34

1,841.98 1,841.98 0.06 0.00 0.00 0.00 0.00 446.68 0.00 2,288.72 4,089.69 900.00 4,989.69 69.94 0.00 0.00 7,278.41 Mar '09 12 mths 347.17 10.36 336.81 6,588.91 0.00 0.00 0.00 558.55 558.55 416.35
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Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances

9,028.34 281.10 8,747.24 23,690.86 10.01 283.61 417.41 1,255.07 1,956.09 584.41

Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Minority Interest Group Share in Joint Venture Miscellaneous Expenses Total Assets ContingentLiabilities Book Value (Rs)

0.00 2,540.50 0.00 3,630.72 1.59 3,632.31 -1,091.81 0.00 0.00 0.00 31,356.30 44,312.12 28.84

953.01 2,392.55 0.00 1,494.41 3.48 1,497.89 894.66 0.00 0.00 0.00 16,450.86 25,839.26 26.50

0.00 974.90 0.00 561.96 0.00 561.96 412.94 0.00 0.00 9.67 7,348.33 23,437.94 12.42

FINANCIALS: Market capitalization: 165355.66992 ( Rs. in Millions ) Total Income - Rs. 22116.2 Million ( year ending Mar 2011) Net Profit - Rs. 5237.5 Million ( year ending Mar 2011)

PLANS FOR INCREASING CAPACITY: Adani Power today said it expects to increase its capacity to 5,500 MW from present 3,300 MW by March 2012. Pench Thermal Power Project (Upcoming) Location : Chhindwara, District Chhindwara, Madhya Pradesh, India Capacity : 1320 MW
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The Pench Thermal Power Project of 1320 MW is being set up by Adani Pench Power Limited, a subsidiary of Adani Power Limited. In line with our commitment to the environment all the units are based on supercritical technology. The project is in advanced stage of development and the project is planned to be commissioned in the second year of the XIIth Five Year Plan. Dahej Thermal Power Project (Upcoming) Adani Power Dahej Limited a subsidiary of Adani Power Limited is implementing at a coastal location, near the port of Dahej, in the industrial district of Bharuch in Gujarat, a thermal power project with an aggregate capacity 2640 MW. The project is advanced stage of development. Bhadreshwar Thermal Power Project (Upcoming) Kutchh Power Generation Limited a subsidiary of Adani Power Limited is implementing at a coastal location, near the port of Mundra, in district Kutchh in Gujarat, a thermal power project with an aggregate capacity 3300 MW. The project is advanced stage of development.

POTENTIAL: This is the first private sector HVDC transmission project in the country ensuring free flow of power between Western India and the Northern Hinterland. The advantageous edge Adani has, is the national and international coal mining rights with its promoter Company Adani Enterprises Limited which ensures fuel security. Vertical integration within the Adani group shall provide synergies to the power business and catapult it to electrifying heights of success.

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Lanco Infratech Year of establishment: 1960 Sector: Private Description: With its geographically diversified portfolio of thermal power projects, Lanco is uniquely poised to contribute significantly to filling the demand-supply gap in power generation in the country. Lanco has taken a giant leap forward in the private IPP space standing as the top private power producer in the country by the end of FY'11 and will continue to hold its position in the elite league of top three. The Lanco Thermal Division operates within the Lanco group's integrated power value chain. This eco-system incorporates EPC and construction, development, operation and maintenance (O&M), trading, transmission and distribution and coal mines. Balance Sheet: Consolidated Balance Sheet ------------------- in Rs. Cr. ------------------Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital 238.72 238.72 Mar '10 Mar '09 Mar '08 12 mths 238.55 238.55 12 mths 219.83 219.83 12 mths 219.79 219.79 Mar '07 12 mths 219.79 219.79
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Share Application Money 0.00 Preference Share Capital 0.00 Init. Contribution Settler 0.00 Preference Share 0.00 Application Money Employee Stock Opiton 46.63 Reserves 4,337.78 Revaluation Reserves 0.00 Networth 4,576.50 Secured Loans 15,477.53 Unsecured Loans 1,174.17 Total Debt 16,651.70 Minority Interest 845.32 Policy Holders Funds 0.00 Group Share in Joint 0.00 Venture Total Liabilities 21,228.20 Mar '11 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits 12,302.80 1,966.75 10,336.05 5,304.68 3,194.94 2,142.35 2,130.44 1,290.46 5,563.25 4,735.69 0.00

0.00 0.00 0.00 0.00 74.60 3,031.63 0.00 3,270.18 7,561.91 799.47 8,361.38 710.82 0.00 0.00

0.00 0.00 0.00 0.00 0.00 1,877.79 0.00 2,097.62 5,247.27 349.70 5,596.97 703.28 0.00 0.00

0.00 0.00 0.00 0.00 0.00 1,613.55 0.00 1,833.34 2,860.30 304.98 3,165.28 558.78 0.00 0.00

0.00 0.00 0.00 0.00 0.00 1,290.69 0.00 1,510.48 1,694.88 15.00 1,709.88 376.28 0.00 0.00

11,631.56 7,694.59 4,998.62 3,220.36 Mar '10 Mar '09 Mar '08 Mar '07 12 mths 12 mths 12 mths 12 mths

6,164.39 2,386.71 2,045.74 1,918.58 1,086.66 5,077.73 1,923.73 2,022.89 1,626.71 2,227.00 962.77 4,816.48 2,187.46 0.00 761.53 1,625.18 4,005.38 983.69 1,128.54 1,194.35 990.45 3,313.34 1,620.90 0.00 653.41 575.38

1,392.33 1,343.20 2,410.61 1,095.80 696.55 602.91 754.25 489.64 724.08 269.42 111.26 30.31 1,589.59 789.37 1,561.41 453.29 629.87 474.74
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Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Minority Interest Group Share in Joint Venture Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

10,298.94 0.00 6,836.77 177.69 7,014.46 3,284.48 0.00 0.00 0.00 22,120.15 27,705.26 19.01

7,003.94 4,934.24 3,780.87 1,717.40 0.00 0.00 0.00 0.00 3,511.81 3,096.64 2,687.15 1,153.25 99.50 53.97 35.80 9.40 3,611.31 3,150.61 2,722.95 1,162.65 3,392.63 1,783.63 1,057.92 554.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 12,416.98 8,397.88 5,557.41 3,596.66 18,310.93 5,214.32 7,422.71 5,756.89 13.58 94.33 82.45 67.93

FINANCIALS: Market Capitalization: Rs. 15,000 Crores (USD 3.33 billion) Rs.3,260.78 crore from the net operating income and Rs.498.84 crore from the net profit.

PLANS FOR INCREASING CAPACITY: Lanco Infratech plans to spend as much as Rs 24,000 crore on capital expenditure over three years, even as the diversified group remains cautious amid coal supply issues hurting the overall power sector. The company, which currently has a generation capacity of 3,892 MW, aims to add about 5,000 MW in three years, including this fiscal.

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 We are expecting to see capital expenditure of about Rs 24,000 crore over a period of three years, including the current fiscal (ending March, 2012). The capital expenditure would be Rs 8,000 crore every fiscal till the 2013-14 period, Lanco Infratech CFO Mr J Suresh Kumar told PTI In March 2012, Lanco Infratech acquired Australia-based Griffin Coal for about A$730 million. Lanco will spend $1.4 billion of its own cash as it builds plants to generate an additional 6,000 megawatts by March 2015

POTENTIAL: Against the 11th Five-Year Plan private sector target of 19,797 MW, Lanco is adding a 20 percent capacity. Lanco is one of the very few organisations that offers specialised O&M of thermal power plants, and has set several benchmarks in the area. Though the initial goal is to operate group assets, Lanco aims to become the leading O&M specialist within India and internationally.

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ABB Ltd Year of establishment: 1949 Sector: Private Description: ABB Ltd (India), the local subsidiary of the Swiss-Swedish engineering company is a leading provider of integrated power and automation solutions for conventional and renewable based power generation plants. With an extensive offering that includes electrical balance of plant, automation, instrumentation and control systems, and service along with more than 125 years of expertise and innovation and a presence in over 100 countries ABB helps optimize performance, improve reliability, enhance efficiency and minimize environmental impact throughout the plant life cycle. Balance Sheet: ------------------- in Rs. Cr. ------------------Dec '10 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money 42.38 42.38 0.00 Dec '09 12 mths 42.38 42.38 0.00 Dec '08 12 mths 42.38 42.38 0.00 Dec '07 12 mths 42.38 42.38 0.00 Dec '06 12 mths 42.38 42.38 0.00
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Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

0.00 2,381.32 0.00 2,423.70 0.00 0.00 0.00 2,423.70 Dec '10 12 mths

0.00 2,367.35 14.00 2,423.73 0.00 0.00 0.00 2,423.73 Dec '09 12 mths 879.26 206.13 673.13 116.34 16.88 729.41 2,857.73 223.24 3,810.38 699.81 300.90 4,811.09 0.00 3,048.65 145.04 3,193.69 1,617.40 0.00 2,423.75

0.00 2,062.29 14.28 2,118.95 0.00 0.02 0.02 2,118.97 Dec '08 12 mths 766.48 220.65 545.83 137.51 61.12 642.65 2,975.89 347.28 3,965.82 778.91 0.95 4,745.68 0.00 3,211.55 159.63 3,371.18 1,374.50 0.00 2,118.96

0.00 1,569.42 14.54 1,626.34 0.00 0.57 0.57 1,626.91 Dec '07 12 mths 576.91 224.98 351.93 105.94 70.45 488.71 2,423.56 441.30 3,353.57 581.67 201.56 4,136.80 0.00 2,970.40 67.82 3,038.22 1,098.58 0.00 1,626.90

0.00 1,138.65 14.81 1,195.84 0.00 1.55 1.55 1,197.39 Dec '06 12 mths 514.52 207.34 307.18 24.62 77.35 354.70 1,570.27 285.91 2,210.88 341.83 260.53 2,813.24 0.00 1,969.43 55.57 2,025.00 788.24 0.00 1,197.39
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Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets

997.84 231.76 766.08 57.70 16.80 697.85 2,925.97 288.30 3,912.12 791.77 298.83 5,002.72 0.00 3,234.94 184.64 3,419.58 1,583.14 0.00 2,423.72

Contingent Liabilities Book Value (Rs)

369.48 114.38

226.58 113.72

248.09 99.32

133.10 76.06

95.57 278.67

FINANCIALS:

Market capitalization: 169632.6541875 ( Rs. in Millions ) Total Income: Net Profit: Rs. 63726.354 Million ( year ending Dec 2010) Rs. 632.303 Million ( year ending Dec 2010)

PLANS FOR INCREASING CAPACITY: Recently, the group won a contract for an ultra high-voltage direct current (HVDC) link between Assam and Uttar Pradesh, to transport surplus power. The 1,728-km line is a $900-million deal for ABB, and its Indian subsidiary's share is $130 million.

POTENTIAL: India energy starved country with demand exceeding supply by 13%. We need to add 1 lakh MW (100,000MW)..immediately. So for the next two decades, the opportunity for us, the worlds largest player, to grow here is huge. ( ABB Indias vice-chairman and managing director, Biplab Majumder)

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Cesc Ltd Year of establishment: 1978 Sector: Public

Description: CESC, Calcutta Electric Supply Corporation (India), is engaged in power generation and distribution in state of West Bengal. CESC is a fully integrated power utility engaged in the generation and distribution of electricity across 567 sq km of licensed area in Kolkata, West Bengal since 1899 serving 2.5 million consumers. This includes domestic, industrial and commercial users. CESC owns and operates four thermal power plants generating 1,225 MW power. These are the Budge Budge generating station (750 MW), Southern generating station (135 MW), Titagarh generating station (240 MW) and New Cossipore generating station (100 MW). CESC owns and operates the T&D system, which comprises 474 km circuit of transmission and 85 distribution stations; 3,837 km circuit of high tension (HT) lines further linking distribution stations with low tension (LT) substations, large industrial consumers and 9,867 km circuit of LT lines connecting the LT substations to LT consumers. Balance sheet: ------------------- in Rs. Cr. ------------------Mar '11 Mar '10 Mar '09 Mar '08

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12 mths Sources Of Funds Total Share Capital 125.59 Equity Share Capital 125.59 Share Application Money 0.00 Preference Share Capital 0.00 Init. Contribution Settler 0.00 Preference Share 0.00 Application Money Employee Stock Opiton 0.00 Reserves 4,575.16 Revaluation Reserves 0.00 Networth 4,700.75 Secured Loans 3,300.76 Unsecured Loans 2,276.17 Total Debt 5,576.93 Minority Interest 2.11 Policy Holders Funds 0.00 Group Share in Joint 0.00 Venture Total Liabilities 10,277.68 Mar '11 12 mths Application Of Funds Gross Block 12,702.31 Less: Accum. 4,640.52 Depreciation Net Block 8,061.79 Capital Work in Progress 880.14 Investments 417.37 Inventories 407.90 Sundry Debtors 582.01

12 mths 125.59 125.59 1.00 0.00 0.00 0.00 0.00 3,039.04 1,373.70 4,539.33 2,806.22 712.67 3,518.89 0.89 0.00 0.00 8,058.22 Mar '10 12 mths 12,085.73 4,240.72 7,845.01 442.16 437.37 373.89 517.63

12 mths 125.59 125.59 0.50 0.00 0.00 0.00 0.00 2,884.35 1,490.55 4,500.99 2,266.10 1,666.56 3,932.66 0.00 0.00 0.02 8,433.65 Mar '09 12 mths 9,842.19 3,905.33 5,936.86 1,351.49 434.27 377.62 411.89

12 mths 125.59 125.59 0.98 0.00 0.00 0.00 0.00 2,796.35 1,614.32 4,537.24 1,595.15 1,412.73 3,007.88 0.00 0.00 0.00 7,545.12 Mar '08 12 mths 9,103.17 3,577.93 5,525.24 711.90 529.85 352.03 340.35
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Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Minority Interest Group Share in Joint Venture Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

1,229.12 2,219.03 626.23 0.00 2,845.26 0.00 1,793.56 137.62 1,931.18 914.08 0.00 0.00 6.42 10,279.80 3,291.46 376.25

130.76 1,022.28 543.42 1,037.24 2,602.94 0.00 3,150.62 124.89 3,275.51 -672.57 0.00 0.00 7.13 8,059.10 1,313.01 253.30

172.91 962.42 505.41 1,110.77 2,578.60 0.00 1,752.51 124.88 1,877.39 701.21 0.00 0.00 9.83 8,433.66 310.34 240.92

164.90 857.28 469.45 852.13 2,178.86 0.00 1,287.57 121.89 1,409.46 769.40 0.00 0.00 8.73 7,545.12 892.57 233.88

FINANCIALS: Market Capitalization: Total Income: Net Profit: 32783.18672 ( Rs. in Millions )

Rs. 42472.6 Million ( year ending Mar 2011)

Rs. 4884 Million ( year ending Mar 2011)

PLANS FOR INCREASING CAPACITY:

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Location Chandrapur Haldia phase I Dhenkenal Dumka Balagarh Pirpainti

Capacity Maharashtra West Bengal Orissa Jharkhand West Bengal Bihar

Type 600MW 600 MW 1000MW 600MW 1320MW 2000MW

Commissioning Thermal 2013 Thermal 2014 Thermal 2015 Thermal 2016 Thermal 2016 Thermal 2017

CESC plans to add 6500 MW of generation capacity in its portfolio by FY15FY16, with 20% of the portfolio under operation and 20% under construction. The remaining 60% of the capacity is still in the development stage and, hence, needs to overcome a lot of hurdles in terms of land acquisition, fuel security, financial closure and environmental clearances

POTENTIAL: CESC has very strong relationships with multilateral institutions like IFC and ADB who have extended loans of about US$ 169 Million for several projects.

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DPSC Ltd Year of establishment: 1919 Sector: Public and Private Description: DPSC Limited (DPSCL) and Associated Power Co. Ltd.,(APC) were incorporated in the year 1919 primarily to supply power to the Bengal Coal Company Ltd, then the largest producer of Coal in Asia, and also to the railways, industries and townships in the Asansol - Raniganj areas.

FINANCIALS: Total Income - Rs. 4167.532 Million ( year ending Mar 2011) Net Profit - Rs. 56.749 Million ( year ending Mar 2011)

PLANS FOR INCREASING CAPACITY: DPSC Ltd will be investing Rs 26,450 crore by 2015 in the power sector across India. DPSC have an installed capacity of power generation of about 77.4 Mw, and will add another 4362 Mw with an investment of Rs 25,000 crore by March, 2015 in Rajasthan, West Bengal, Bihar, Gujarat and Madhya Pradesh," DPSC chairman Hemant Kanoria said. "In power transmission and distribution segment, DPSC will investment around Rs 1450 crore," he said.

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Jindal India Thermal Power Ltd

Year of establishment: 1952 Sector: Public Description: Jindal India Thermal Power Limited is a part of B.C. Jindal Group of Companies. It is one of the leading business conglomerate in India with interest in diverse industries including steel products, flexible packaging films and photographic products. Jindal India Thermal Power Limited was incorporated to set-up thermal power plants in India. PLANS FOR INCREASING CAPACITY: Jindal India Thermal Power Limited (JITPL) expects to commission the first 600 MW unit of its 1200 MW (2x600) power plant at Derang near Talcher by March 2012. Jindal India Thermal Power Plant (JITPL) has acquired 95 per cent of the land needed for its project. JITPL had proposed to set up a 1200 MW power plant at Derang on 1055 acres of land. The Company's vision is to develop thermal power plants across various States with a total installed capacity of 4440 MW to be implemented in phases in next few years. PROJECT UNDER IMPLEMENTATION Angul I 3 x 600 MW = 1800 MW Angul, Odisha PROJECT UNDER DEVELOPMENT Raigarh Project 2 x 660 MW = 1320 MW Raigarh, Chhattisgarh PROJECT UNDER PLANNING Angul II 2 x 660 MW = 1320 MW Angul, Odisha

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Neyveli Lignite Corporation (Thermal Plant)

Year of establishment: 1962 Sector: Private Description: The epitome of Indo-Soviet Collaboration, the 600MW Neyveli Thermal Power Station-1 was commissioned with one Unit of 50 MW in May 1962. Presently this Power Station consists of six units of 50 MW each and three units of 100 MW each. The last unit of this Power Station was synchronized in February 1970. The entire Power Station was constructed with aid of esrtwhile Soviet Union. The Power generated from this Thermal Station is fed to the Grid of Tamil Nadu Transmission Corporation Limited(TANTRANSCO), (A Subsidaary of Tamil Nadu Electricity Board (TNEB)),the sole beneficiary. Balance sheet:
------------------- in Rs. Cr. ------------------Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Init. Contribution Settler Preference Share Application Money Employee Stock Opiton Reserves Revaluation Reserves Networth Mar '10 12 mths Mar '09 12 mths

1,677.71 1,677.71 0.00 0.00 0.00 0.00 0.00 9,496.77 0.00 11,174.48

1,677.71 1,677.71 0.00 0.00 0.00 0.00 0.00 8,646.96 0.00 10,324.67

1,677.71 1,677.71 0.00 0.00 0.00 0.00 0.00 7,791.52 0.00 9,469.23

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Secured Loans Unsecured Loans Total Debt Minority Interest Policy Holders Funds Group Share in Joint Venture Total Liabilities

4,257.50 856.54 5,114.04 55.00 0.00 0.00 16,288.52 Mar '11 12 mths

3,509.42 839.86 4,349.28 33.00 0.00 0.00 14,673.95 Mar '10 12 mths

3,252.65 957.70 4,210.35 11.00 0.00 0.00 13,679.58 Mar '09 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Minority Interest Group Share in Joint Venture Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

13,918.25 7,066.86 6,851.39 4,482.83 515.98 491.71 2,202.39 21.26 2,715.36 1,703.20 4,402.73 8,821.29 0.00 2,798.15 1,583.03 4,381.18 4,440.11 0.00 0.00 53.21 16,343.52 5,402.43 66.61

11,932.97 6,693.70 5,239.27 4,755.70 619.17 502.96 1,611.62 62.08 2,176.66 2,231.03 4,764.53 9,172.22 0.00 3,236.34 1,942.24 5,178.58 3,993.64 0.00 0.00 99.17 14,706.95 5,541.20 61.54

10,893.46 6,390.42 4,503.04 4,279.18 722.37 535.85 781.44 68.80 1,386.09 1,725.29 5,413.39 8,524.77 0.00 2,794.29 1,672.49 4,466.78 4,057.99 0.00 0.00 128.00 13,690.58 2,146.42 56.44

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FINANCIALS: Market Capitalization: 143276.39984 ( Rs. in Millions ) Total Income - Rs. 49213.2 Million ( year ending Mar 2011) Net Profit - Rs. 12983.3 Million ( year ending Mar 2011)

PLANS FOR INCREASING CAPACITY: The state-run Neyveli Lignite Corporation Limited has undertaken three thermal power projects worth Rs.13,270.22 crore for further expansion in Tamil Nadu, the Ministry of Coal said Tuesday. The projects include the expansion of thermal power station TPS-II at Neyveli at an estimated cost of Rs.2,452.57 crore, the NTPL coal-based power station at Tuticorin at Rs.4,909.54 crore and the New Neyveli Thermal Power station at Neyveli at Rs.5,907.11 crore, the ministry said in a statement.

PROJECT

CAPACITY

SANCTION COST (Rs. In Crores)

Commissioning Schedule

Coal based power project Tuticorin

(2x500 mw) 4909.54

Unit-I Apr 2012 Unit-II Aug 2012

POTENTIAL:

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The Union Government holds 93% shares of NLC and is administered through Ministry of Coal.

INTERPRETATION

As the institutional framework is concerned, coal industry is predominantly managed through a number of coal companies directly under the control of Government of India. Burning of coal accounts for approximately one half of all electricity generation whereas nuclear energy approximately one fourth of all electricity generation. Growing concern about pollution and global warming has led many individuals and nations to consider the nuclear industry as an excellent alternative for future power generation. Technological advancements and increased public awareness concerning nuclear power are critical to the success of the nuclear industry. Investments made by the nuclear industry in both technology and education should be seen in the near future. The future power reforms should be in the field of nuclear energy.

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THE FUTURE SCENARIO OF OVERAL MARKET

India targets 9 10% economic growth rate in a sustainable manner over next 1015 years. Adequate availability of energy would be essential for this objective to materialize. There are shortages in all the energy segments. Substantial expansion of capacities in coal, petroleum, gas and electricity is, therefore, the thrust of the Government policies and programmes. Ultimate goal is to develop these markets and facilitate, through various policy initiatives, their matured functioning in a competitive manner. Skillful development of road maps to reach the goal is a challenge. During the period of transition, therefore, regulatory interventions to harmonize the interests of investors, developers and consumers, is an approach, which is being pursued by various energy groups. In most cases, development of energy sector, in various segments, has happened under government-controlled organizations. Over last 10-15 years, private investments are being encouraged, particularly in petroleum, natural gas and power. While India is fully committed to develop and expand its energy markets, it is equally committed to ensure environmental safeguards. Using latest cost effective technologies in all the energy segments forms an important part of policy and strategy.

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REFERENCES

www.moneycontrol.com
http://www.business-standard.com/india/index2.php

(http://www.bloomberg.com/news/2010-09-08/tata-power-may-invest-15billion-to-increase-capacity-eight-fold-by-2017.html)

(http://www.eai.in/club/users/Rahul/blogs/7273) (http://www.thehindu.com) (http://www.tatapower.com/aboutus/business-today.asp) (http://www.infrawindow.com) (http://articles.economictimes.indiatimes.com) (www.thehindu.com) (http://www.thehindubusinessline.com/companies/article2624345.ece) (http://www.livemint.com/2010/07/18231731/ABB-is-looking-at-India-as-am.html) (http://breport.myiris.com/ICICISL/CESC_20120116.pdf) (http://mjunction.in/market_news/coal_1/dpscipcl_to_invest_rs_26450_cr.p hp) (http://www.business-standard.com/india/news/jindal-india-thermal-powerto-commission-600-mw-unit-by-mar-2012/409807/) (http://articles.economictimes.indiatimes.com/2012-0110/news/30611875_1_thermal-power-projects-power-station-ntpl)
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 (http://www.nlcindia.com/index.php?file_name=about_01h)

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