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SUMMER TRAINING REPORT ON “Financial Analysis & Comparison Of UPRVUNL” Submitted in partial fulfillment of the requirement for the award of degree of Master of Business Administration From Gautam Buddh Technical University, Lucknow Submitted by ANKIT MITTAL Roll no: 1212470025 MBA (Batch 2012-14), 3 rd Semester Under The Guidance Of Mr. DEVENDRA KUMAR SHUKLA Accounts Officer CPAD OBRA ‘A’TPS

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ONFinancial Analysis & Comparison Of UPRVUNL Submitted in partial fulfillment of the requirement for the award of degree of

Master of Business AdministrationFrom

Gautam Buddh Technical University, LucknowSubmitted by


Roll no: 1212470025

MBA (Batch 2012-14), 3rd Semester

Under The Guidance Of


Accounts Officer





I owe a great many thanks to agreat many people who helped and supported me during the writing of this project. My deepest thanks to Mrs. Pooja Sharma the Guide of theproject for guiding and correcting various documents of mine with attention and care. She had taken pain to gothrough the project and make necessary correction as and when needed.I express my thanks tothe Principal of my college Prof. AJAY PRAKASH Sir forextending his support. My deep sense of gratitude to Mr. DEVENDRA KUMAR SHUKLA, Account Officer CENTRAL PAYMENT AND ACCOUNT DIVISION Obra Thermal Power Station A for his able support and guidance.

I am specially thanking full for Mr. S.P. SAXENA Sir (DY. CHIEF ACCOUNTS OFFICER, CPAD OBRA ATPS) for his grateful support. Thanks and appreciation to the helpful people CPAD OBRA ATPS, for their support. I would also thank my Institution and my faculty members without whom this project would havebeen a distant reality. I also extend my heartfelt thanks to my family and well wishers.ANKIT MITTAL1212470025III Semester


I Ankit Mittal, a student of Master of Business Administration (MBA) Programme hereby declare that the project work entitled Financial Analysis & Comparison Of UPRVUNL submitted to the from the Institute of Co- operative & Corporate Management Research and Training, Lucknow, is a record of anoriginal work done by me under theguidance of Mr. DEVENDRA KUMAR SHUKLA AND Mrs. Pooja Sharma and the same has never been submitted by the undersigned either in part or in full to any other University or Institute or published earlier.This information is true to the best of my knowledge and belief.ANKIT MITTAL


TABLE OF CONTENTS1. Company profile2. Objective of study.3. Introduction of topic.4. Research methodology5. Data Analysis and interpretation.6. Results and Findings7. Suggestion/ Recommendations8. Conclusions9. Limitation of study.10. Appendix/ Annexure11. BibliographyINDUSTRY PROFILE


The electricity sector in India had an installed capacity of 225.133 GW as of May 2013, the world's fifth largest. Captive power plants generate an additional 34.444 GW. Non Renewable Power Plants constitute 87.55% of the installed capacity, and Renewable Power Plants constitute the remaining 12.45% of total installed Capacity. India generated 855 BU (855 000 MU i.e. 855 Two) electricity during 201112 fiscal.In terms of fuel, coal-fired plants account for 57% of India's installed electricity capacity, compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal, renewal hydropower accounts for 19%, renewable energy for 12% and natural gas for about 9%.

In December 2011, over 300 million Indian citizens had no access to electricity. Over one third of India's rural population lacked electricity, as did 6% of the urban population. Of those who did have access to electricity in India, the supply was intermittent and unreliable. In 2010, blackouts and power shedding interrupted irrigation and manufacturing across the country.

The per capita average annual domestic electricity consumption in India in 2009 was 96 kWh in rural areas and 288 kWh in urban areas for those with access to electricity, in contrast to the worldwide per capita annual average of 2600 kWh and 6200 kWh in the European Union. India's total domestic, agricultural and industrial per capita energy consumption estimates vary depending on the source. Two sources place it between 400 to 700 kWh in 20082009. As of January 2012, one report found the per capita total consumption in India to be 778 kWh.

India currently suffers from a major shortage of electricity generation capacity, even though it is the world's fourth largest energy consumer after United States, China and Russia. The International Energy Agency estimates India needs an investment of at least $135 billion to provide universal access of electricity to its population.

The International Energy Agency estimates India will add between 600 GW to 1200 GW of additional new power generation capacity before 2050. This added new capacity is equivalent to the 740 GW of total power generation capacity of European Union (EU-27) in 2005. The 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 utilization, especially wind energy. As of December 2011, India had an installed capacity of about 28 GW of renewal technologies-based electricity, exceeding the total installed electricity capacity in Austria by all technologies.

India's network losses exceeded 32% in 2010 including non-technical losses, compared to world average of less than 15%. Both technical and non-technical factors contribute to these losses, but quantifying their proportions is difficult. But the Government pegs the national T&D losses at around 24% for the year 2011 & has set a target of reducing it to 17.1% by 2017 & to 14.1% by 2022. Some experts estimate that technical losses are about 15% to 20%, 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. A case study in Kerala estimated that replacing faulty meters could reduce distribution losses from 34% to 29%.

Key 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.


The first demonstration of electric light in Calcutta was conducted on 24 July 1879 by P W Fleury & Co. On 7 January 1897, Kilburn & Co secured the Calcutta electric lighting license as agents of the Indian Electric Co, which was registered in London on 15 January 1897. A month later, the company was renamed the Calcutta Electric Supply Corporation. The control of the company was transferred from London to Calcutta only in 1970. Enthused by the success of electricity in Calcutta, power was thereafter introduced in Bombay. Mumbai saw electric lighting demonstration for the first time in 1882 at Crawford Market, and Bombay Electric Supply & Tramways Company (B.E.S.T.) set up a generating station in 1905 to provide electricity for the tramway. The first hydroelectric installation in India was installed near a tea estate at Sidrapong for the Darjeeling Municipality in 1897. The first electric train ran between Bombay's Victoria Terminus and Kurla along the Harbour Line, in 1925. In 1931, electrification of the meter gauge track between Madras Beach and Tambaram was started.DemandOf the 1.4 billion people of the world who have no access to electricity in the world, India accounts for over 300 million.

Some 800 million Indians use traditional fuels fuel wood, agricultural waste and biomass cakes for cooking and general heating needs. These traditional fuels are burnt in cook stoves, known as chulah or chulha in some parts of India. Traditional fuel is inefficient source of energy, its burning releases high levels of smoke, PM10 particulate matter, NOX, SOX, PAHs, polyaromatics, formaldehyde, carbon monoxide and other air pollutants. Some reports, including one by the World Health Organization, claim 300,000 to 400,000 people in India die of indoor air pollution and carbon monoxide poisoning every year because of biomass burning and use of chullahs. Traditional fuel burning in conventional cook stoves releases unnecessarily large amounts of pollutants, between 5 to 15 times higher than industrial combustion of coal, thereby affecting outdoor air quality, haze and smog, chronic health problems, damage to forests, ecosystems and global climate. Burning 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. The growth of electricity sector in India may help find a sustainable alternative to traditional fuel burning.

In addition to air pollution problems, a 2007 study finds that discharge of untreated sewage is single most important cause for pollution of surface and ground water in India. There is a large gap between generation and treatment of domestic wastewater in India. The 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. The wastewater generated in these areas normally percolates in the soil or evaporates. The uncollected wastes accumulate in the urban areas because unhygienic conditions, release heavy metals and pollutants that leaches to surface and groundwater. Almost all rivers, lakes and water bodies are severely polluted in India. Water pollution also adversely impacts river, wetland and ocean life. Reliable generation and supply of electricity is essential for addressing India's water pollution and associated environmental issues.

Other drivers for India's electricity sector are its rapidly growing economy, rising exports, improving infrastructure and increasing household incomes.

Demand trends

As in previous years, during the year 201011, demand for electricity in India far outstripped availability, both in terms of base load energy and peak availability. Base load requirement was 861,591 (MU) against availability of 788,355 MU, an 8.5% deficit. During peak loads, the demand was for 122 GW against availability of 110 GW, a 9.8% shortfall.

In a May 2011 report, India's Central Electricity Authority anticipated, for 201112-year, a base load energy deficit and peaking shortage to be 10.3% and 12.9% respectively. The peaking shortage would prevail in all regions of the country, varying from 5.9% in the North-Eastern region to 14.5% in the Southern Region. India also expects all regions to face energy shortage varying from 0.3% in the North-Eastern region to 11.0% in the Western region. India's Central Electricity Authority expects a surplus output in some of the states of Northern India, those with predominantly hydropower capacity, but only during the monsoon months. In these states, shortage conditions would prevail during winter season. According to this report, the five states with largest power demand and availability, as of May 2011, were Maharashtra, Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Gujarat.

In late 2011 newspaper articles, Gujarat was declared a power surplus state, with about 23 GW more power available than its internal demand. The 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.

Despite an ambitious rural electrification programme, some 400 million Indians lose electricity access during blackouts. While 80% of Indian villages have at least an electricity line, just 52.5% of rural households have access to electricity. In urban areas, the access to electricity is 93.1% in 2008. The overall electrification rate in India is 64.5% while 35.5% of the population still lives without access to electricity.

According to a sample of 97,882 households in 2002, electricity was the main source of lighting for 53% of rural households compared to 36% in 1993.

The 17th electric power survey of India report claims:

Over 201011, India's industrial demand accounted for 35% of electrical power requirement, domestic household use accounted for 28%, agriculture 21%, commercial 9%, public lighting and other miscellaneous applications accounted for the rest.

The electrical energy demand for 201617 is expected to be at least 1392 Tera Watt Hours, with a peak electric demand of 218 GW.

The electrical energy demand for 202122 is expected to be at least 1915 Tera Watt Hours, with a peak electric demand of 298 GW.

If current average transmission and distribution average losses remain same (32%), India needs to add about 135 GW of power generation capacity, before 2017, to satisfy the projected demand after losses.

McKinsey claims that India's demand for electricity may cross 300 GW, earlier than most estimates. To explain their estimates, they point to four reasons:

India's manufacturing sector is likely to grow faster than in the past

Domestic demand will increase more rapidly as the quality of life for more Indians improve

About 125,000 villages are likely to get connected to India's electricity grid

Currently blackouts and load shedding artificially suppresses demand; this demand will be sought as revenue potential by power distribution companies

A demand of 300GW will require about 400 GW of installed capacity, McKinsey notes. The extra capacity is necessary to account for plant availability, infrastructure maintenance, spinning reserve and losses.

In 2010, electricity losses in India during transmission and distribution were about 24%, while losses because of consumer theft or billing deficiencies added another 1015%.

According to two studies published in 2004, theft of electricity in India amounted to a nationwide loss of $4.5 billion. This led several states of India to enact and implement regulatory and institutional framework; develop a new industry and market structure; and privatize distribution. The state of Andhra Pradesh, for example, enacted an electricity reform law; unbundled the utility into one generation, one transmission, and four distribution and supply companies; and established an independent regulatory commission responsible for licensing, setting tariffs, and promoting efficiency and competition. Some state governments amended the Indian Electricity Act of 1910 to make electricity theft a cognizable offence and impose stringent penalties. A separate law, unprecedented in India, provided for mandatory imprisonment and penalties for offenders, allowed constitution of special courts and tribunals for speedy trial, and recognized collusion by utility staff as a criminal offence. The state government made advance preparations and constituted special courts and appellate tribunals as soon as the new law came into force. High 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 98%. Transmission and distribution losses were reduced by 8%.

Power cuts are common throughout India and the consequent failure to satisfy the demand for electricity has adversely effected India's economic growth.Electricity Consumption

The Per capita Consumption (kWh) in 200910 was as follows:

StatePer capita Consumption(kWh)








Tamil Nadu1210.81

Himachal Pradesh1144.94

Andhra Pradesh1013.74

Jammu & Kashmir968.47


Uttar Pradesh386.93


Madhya Pradesh618.1








West Bengal515.08

Andaman and Nicobar Islands506.13







Arunachal Pradesh503.27



As many as 18 power plants in the country are faced with critical level of coal shortage, according to minister of State for Power, K C Venugopal.Of the 89 thermal power projects being monitored, 34 had fuel (coal) stock less than seven days and 25 of these had less than four days stock, he said while speaking in the Rajya Sabha (the upper house of Parliament).

"None 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," he said.Power utilities, he said, have reported a generation loss of 8.7 billion units in 2011-12 (up to February, 2012) due to shortage of coal.Listing steps being taken by the government to mitigate shortage of coal for thermal power plants in the country, he said Coal India is being asked to enhance coal production while power utilities have been advised to import coal to bridge domestic supply deficit.As many as 11 plants of state-owned NTPC lost 7.8 billion units because of shortage of coal during current fiscal. Other utilities that lost on generation of electricity included ones in Madhya Pradesh, Maharashtra and Andhra Pradesh, he added.BSE Power index fell 2.2 per cent while BSE Sensex fell over 1 per cent.The budget announced cuts in import duties on coal.The basic custom duty on steam coal was cut to zero from 5 per cent with countervailing duty reduced to 1 per cent from 5 per cent for fiscal 2012-13 or 2013-14.Analysts say that the effective reduction in import coal cost is close to 9 per cent. In 2012-13, India is expected to import steam coal of about 60 million metric tonne.Generation

Power development in India was first started in 1897 in Darjeeling, followed by commissioning of a hydropower station at Sivasamudram in Karnataka during 1902.

India's electricity generation capacity additions from 1950 to 1985 were very low when compared to developed nations. Since 1990, India has been one of the fastest growing markets for new electricity generation capacity.The country's annual electricity generation capacity has increased in last 20 years by about 130 GW, from about 66 GW in 1991to over 100 GW in 2001, to over 199 GW in 2012. India's Power Finance Corporation Limited projects that current and approved electricity capacity addition projects in India are expected to add about 100 GW of installed capacity between 2012 and 2017. This 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 China, and short of capacity needed to ensure universal availability of electricity throughout India by 2017.

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.

As of August 2011, the states and union territories of India with power surplus were Himachal Pradesh, Sikkim, Tripura, Gujarat, Delhi and Dadra and Nagar Haveli.

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 areas.

The table below presents the electricity generation capacity, as well as availability to India's end user and their demand. The difference between installed capacity and availability is the transmission, distribution and consumer losses. The gap between availability and demand is the shortage India is suffering. This shortage in supply ignores the effects of waiting list of users in rural, urban and industrial customers; it also ignores the demand gap from India's unreliable electricity supply.

According to India's Ministry of Power, about 14.1 GW of new thermal power plants under construction are expected to be put in use by December 2012.

In 2010, the five largest power companies in India, by installed capacity, in decreasing order, were the state-owned NTPC, state-owned NHPC, followed by three privately owned companies: Tata Power, Reliance Power and Adani Power.

Thermal power

Thermal power plants convert energy rich fuel into electricity and heat. Possible fuels include coal, natural gas, petroleum products, agricultural waste and domestic trash / waste. Other sources of fuel include landfill gas and biogases. In some plants, renewal fuels such as biogas are co-fired with coal.

Coal and lignite accounted for about 57% of India's installed capacity. However, since wind energy depends on wind speed, and hydropower energy on water levels, thermal power plants account for over 65% of India's generated electricity. India's electricity sector consumes about 80% 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

A large part of Indian coal reserve is similar to Gondwana coal. It is of low calorific value and high ash content. The iron content is low in India's coal, and toxic trace element concentrations are negligible. The natural fuel value of Indian coal is poor. On average, the Indian power plants using India's coal supply consume about 0.7kg of coal to generate a kWh, whereas United States thermal power plants consume about 0.45kg of coal per kWh. This is because of the difference in the quality of the coal, as measured by the Gross Calorific Value (GCV). On average, Indian coal has a GCV of about 4500 Kcal/kg, whereas the quality elsewhere in the world is much better; for example, in Australia, the GCV is 6500 Kcal/kg approximately.

The high ash content in India's coal affects the thermal power plant's potential emissions. Therefore, India's Ministry of Environment & Forests has mandated the use of beneficiated coals whose ash content has been reduced to 34% (or lower) in power plants in urban, ecologically sensitive and other critically polluted areas, and ecologically sensitive areas. Coal benefaction industry has rapidly grown in India, with current capacity topping 90 MT.

Thermal power plants can deploy a wide range of technologies. Some of the major technologies include:

Steam cycle facilities (most commonly used for large utilities);

Gas turbines (commonly used for moderate sized peaking facilities);

Cogeneration and combined cycle facility (the combination of gas turbines or internal combustion engines with heat recovery systems); and

Internal combustion engines (commonly used for small remote sites or stand-by power generation).

India has an extensive review process, one that includes environment impact assessment, prior to a thermal power plant being approved for construction and commissioning. The Ministry of Environment and Forests has published a technical guidance manual to help project proposers and to prevent environmental pollution in India from thermal power plants.

Installed thermal power capacity

The installed capacity of Thermal Power in India, as of 31 October 2012, was 140206.18 MW which is 66.99 of total installed capacity.

Current installed base of Coal Based Thermal Power is 120,103.38 MW which comes to 57.38% of total installed base.

Current installed base of Gas Based Thermal Power is 18,903.05 MW which is 9.03% of total installed capacity.

Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.57% of total installed capacity.

The state of Maharashtra is the largest producer of thermal power in the country.This is a list of states and territories of India by installed capacity of power utilities with electricity generation mode break-up as of 30-06-2012 and 31-01-2013 with figures in millions of watts (Megawatts).RankState/Union TerritoryTotal Installed CapacityTotal Thermal




3Tamil Nadu18382.138217.33

4Andhra Pradesh16817.1311771.08

5Uttar Pradesh13682.9910822.87



8Madhya Pradesh9085.365106.15

9West Bengal8507.297229.54



12Delhi Territory6932.156125.42



15Damodar Valley Corporation5288.865095.6


17Himachal Pradesh3714.1197.17



20Jammu and Kashmir2356.15609.59





25Puducherry Territory279.66260.35



28Arunachal Pradesh213.7636.93





33Chandigarh Territory105.7145.13

34Dadra and Nagar Haveli Territory75.3866.92

35Daman and Diu Territory44.937.52

36Andaman and Nicobar Islands Territory65.460.05

37Lakshadweep Territory10.729.97

Various Thermal Power Plants located in various parts of INDIANameOperatorLocationStateUnitsCapacity MW

Rajghat Power StationIPGCLRajghatDelhi2 X 67.5135

Panipat Thermal Power Station IHPGCLAssamHaryana4 x 110440

Panipat Thermal Power Station IIHPGCLAssamHaryana2 x 210, 2 x 250920

Faridabad Thermal Power StationHPGCLFaridabadHaryana1 x 5555

Rajiv Gandhi Thermal Power StationHPGCLKhedarHaryana1 x 600600

Guru Nanak dev TPPSPCLBathindaPunjab4 x 110440

Guru Hargobind TPPSPCLLehra MohabbatPunjab2 x 210, 2 x 250920

Guru Gobind Singh Super Thermal Power PlantPSPCLGhanauliPunjab6 x 2101260

Suratgarh Super Thermal Power PlantRVUNLSuratgarhRajasthan6 x 2501500

Kota Super Thermal Power PlantRVUNLKotaRajasthan2 x 110, 3 x 210, 2 x 1951240

Giral Lignite Power PlantRVUNLThumbliRajasthan2 x 125250

Chhabra Thermal Power PlantRVUNLMothipuraRajasthan2 x 250500

Obra Thermal Power StationUPRVUNLObraUttar Pradesh1 x 40, 3 x 94, 5 x 2001,322.00

Anpara Thermal Power StationUPRVUNLAnparaUttar Pradesh3 x 210, 2 x 5001630

Panki Thermal Power StationUPRVUNLPankiUttar Pradesh2 x 105210

Parichha Thermal Power StationUPRVUNLParichhaUttar Pradesh2 x 110, 2 x 210640

Harduaganj Thermal Power StationUPRVUNLHarduaganjUttar Pradesh1 x 55, 1 x 60, 1 x 105220

Badarpur Thermal Power StationNTPCBadarpurNCT Delhi3 x 95, 2 x 210705

Singrauli Super Thermal Power StationNTPCShaktinagarUttar Pradesh5 x 200, 2 x 500,2000

Barsingsar Thermal Power StationNLCBarsingsarRajasthan2 x 125250

Rihand Thermal Power StationNTPCRihand NagarUttar Pradesh4 x 5002000

NTPC DadriNTPCVidyutnagarUttar Pradesh4 x 210, 2 x 4901820

Feroj Gandhi Unchahar Thermal Power PlantNTPCUnchaharUttar Pradesh5 x 2101050

Tanda Thermal Power PlantNTPCVidyutnagarUttar Pradesh4 x 110440

Raj west Lignite Power PlantJSWBarmerRajasthan8 x 135135

VS Lignite Power PlantKSKGurhaRajasthan1 x 125125

Rosa Thermal Power PlantRelianceRosaUttar Pradesh4 x 3001200

Ukai Thermal Power StationGSECLUkai damGujarat2 x 120, 2 x 200, 1 x 210850

Gandhinagar Thermal Power StationGSECLGandhinagarGujarat2 x 120, 3 x 210870

Wanakbori Thermal Power StationGSECLWanakboriGujarat7 x 2101470

Sikka Thermal Power StationGSECLJamnagarGujarat2 x 120240

Dhuvaran Thermal Power StationGSECLKhambhatGujarat2 x 110220

Kutch Thermal Power StationGSECLPanandhroGujarat2 x 70, 2 x 75290

Surat Thermal Power StationGIPCLNani NaroliGujarat4 x 125500

Akrimota Thermal Power StationGMDCChher NaniGujarat2 x 125250

Satpura Thermal Power StationMPPGCLSarniMadhya Pradesh5 x 62.5, 1 x 200, 3 x 2101142.5

Sanjay Gandhi Thermal Power StationMPPGCLBirsinghpurMadhya Pradesh4 x 210, 1 x 5001340

Amarkantak Thermal Power StationMPPGCLChachaiMadhya Pradesh2 x 120, 1 x 210450

Bhawnendra Singh Deo Power PlantCSPGCLChattisgarh4 x 50, 2 x 120440

Dr Shyama Prasad Mukharjee Thermal Power StationCSPGCLChattisgarh2 x 250500

Hasdeo Thermal Power StationCSPGCLChattisgarh4 x 210840

Koradi Thermal Power StationMAHAGENCOKoradiMaharastra1 x 200, 2 x 210620

Nashik Thermal Power StationMAHAGENCONashikMaharastra3 x 210630

Bhusawal Thermal Power StationMAHAGENCODeepnagarMaharastra2 x 210420

Paras Thermal Power StationMAHAGENCOVidyutnagarMaharastra2 x 250500

Parli Thermal Power StationMAHAGENCOParli-VaijnathMaharastra3 x 210, 2 x 2501130

Khaperkheda Thermal Power StationMAHAGENCOKaparkhedaMaharastra4 x 210, 1 x 5001340

Chandrapur Super Thermal Power StationMAHAGENCOUrjanagarMaharastra4 x 210, 3 x 5002340

Vindhyachal Super Thermal Power StationNTPCVindhya NagarMadhya Pradesh6 x 210, 4 x 500, 1 x 5003760

Korba Super Thermal Power PlantNTPCJamani PalliChattisgarh3 x 200, 4 x 5002600

Sipat Thermal Power PlantNTPCSipatChattisgarh2 x 500,2 x 6602320

Bhilai Expansion Power PlantNTPC-SAIL(JV)BhilaiChattisgarh2 x 250500

Sabarmati Thermal Power StationTorrent PowerAhmedabadGujarat1 x 60, 1 x 120, 2 x 110400

Mundra Thermal Power StationAdani PowerMundraGujarat4 x 330, 5 X 6604620

Tirora Thermal Power StationAdani PowerTiroraMaharashtra5 X 6603300

Mundra Ultra Mega Power ProjectTata PowerMundraGujarat5 X 8004000

Jindal Megha Power PlantJindalTamnarChattisgarh4 x 2501000

Lanco Amarkantak Power PlantLancoPathadiChattisgarh2 x 300600

Trombay Thermal Power StationTataTrombayMaharastra1 x 150, 2 x 500, 1 x 2501400

Dahanu Thermal Power StationReliance Energy LimitedDahanuMaharastra2 x 250500

Wardha Warora Power StationKSKWaroraMaharastra1 x 135135

Amravati Thermal Power PlantINDIABULLSNandgaonpethMaharashtra10 X 2702700

Ramagundam B Thermal Power StationAPGENCORamagundamAndhra Pradesh1 x 62.562.5

Kothagudem Thermal Power StationAPGENCOPalonchaAndhra Pradesh4 x 60, 4 x 120, 2 x 250, 1 x 5001720

Dr Narla Tatarao TPSAPGENCOIbrahimpatnamAndhra Pradesh6 x 210, 1 x 5001760

Rayalaseema Thermal Power StationAPGENCOCuddapahAndhra Pradesh4 x 210840

Kakatiya Thermal Power StationAPGENCOChelpurAndhra Pradesh1 x 500500

Raichur Thermal Power StationKPCLRaichurKarnataka7 x 210, 1 x 2501720

Bellary Thermal Power stationKPCLKudatiniKarnataka1 x 500500

North Chennai Thermal Power StationTNEBAthipattuTamil Nadu3 x 210630

Ennore Thermal Power StationTNEBEnnoreTamil Nadu2 x 60, 3 x 110450

Mettur Thermal Power StationTNEBMetturdamTamil Nadu4 x 210840

Tuticorin Thermal Power StationTNEBTuticorinTamil Nadu5 x 2101050

NTPC RamagundamNTPCJyothi NagarAndhra Pradesh3 x 200, 4 x 5002600

Simhadri Super Thermal Power PlantNTPCSimhadriAndhra Pradesh4 x 5002000

Neyveli Thermal Power StationNLCNeyveliTamil Nadu6 x 50, 3 x 100, 2 x 2101020

Neyveli Thermal Power StationNLCNeyveliTamil Nadu7 x 2101470

JSW EL-SBU-I Power PlantJSWVijayanagarKarnataka2 x 130260

JSW EL-SBU-II Power PlantJSWVijayanagarKarnataka2 x 300600

Udupi Thermal Power PlantLancoNandikoorKarnataka1 x 600600

Neyveli Zero UnitSTPSNeyveliTamil Nadu1 x 250250

Barauni Thermal Power StationNTPCBarauniBihar2 x 50, 2 x 105310

Muzaffarpur Thermal Power StationNTPCKantiBihar2 x 110220

Patratu Thermal Power StationJSEBPatratuJharkhand4 x 40, 2 x 90, 2 x 105, 2 x 110770

Tenughat Thermal Power StationTVNLJharkhand2 x 210420

Kolaghat Thermal Power StationWBPDCLMechedaWest Bengal6 x 2101260

Bakreshwar Thermal Power StationWBPDCLSuriWest Bengal5 x 2101050

Bandel Thermal Power StationWBPDCLWest Bengal4 x 60, 1 x 210450

Santaldih Thermal Power StationWBPDCLWest Bengal4 x 120, 1 x 250730

Sagardighi Thermal Power StationWBPDCLMonigramWest Bengal2 x 300600

Durgapur Thermal Power PlantDPLDurgapurWest Bengal2 x 30, 1 x 70, 2 x 75, 1 x 110, 1 x 300690

IB Thermal Power PlantOPGCLBanharpaliOrissa8 x 120960

Captive Power PlantNALCOAngulOrissa2 x 210420

Kahalgaon Super Thermal Power StationNTPCKahalgaonBihar4 x 210, 3 x 5002340

Bokaro Thermal Power Station BDVCBokaroJharkhand3 x 210630

Chandrapura Thermal Power StationDVCChandrapuraJharkhand3 x 130, 3 x 120, 2 x 2501250

Farakka Super Thermal Power StationNTPCNagarunWest Bengal3 x 200, 2 x 500, 1 x 5002100

Durgapur Thermal Power StationDVCDurgapurWest Bengal1 x 140, 1 x 210350

Mejia Thermal Power StationDVCDurlavpurWest Bengal4 x 210, 2 x 250, 2 x 5002340

Durgapur Steel Thermal Power StationDVCDurgapurWest Bengal2 x 5001000

Koderma Thermal Power StationDVCKodermaJharkhand2 x 5001000

Talcher Super Thermal Power StationNTPCKanihaOrissa6 x 5003000

Talcher Thermal Power StationNTPCTalcherOrissa4x 60, 2 x 110460

Hirakud Power:CPPHindalco IndustriesHirakudOrissa1x 67.5, 3 x 100367.5

Budge Budge Thermal Power PlantCESCAchipurWest Bengal3 x 250750

Titagarh Thermal Power StationCESCWest Bengal4 x 60240

CESC Southern Generating StationCESCWest Bengal3 x 67.5135

Jojobera TPPTataJojoberaJharkhand3 x 120,1x67.5427.5

Jharsuguda TPPVedantaJharsugudaOrissa4x6002400

Vedanta Aluminim CPPVedantaJharsugudaOrissa9x1351215

Essar Power Gujarat Ltd.Essar PowerJamnagarGujarat2X6001200




Financial Analysis & Comparison Of UPRVUNL OBJECTIVE

To analyze the per unit cost. To know the financial position of UPRVUNL. To make comparison of major financial indicators for power generation of UPRVUNL with NTPC, GSECL & APGENCO. To know the profit generated by the organization of UPRVUNL & its comparison with other power generation companies.Introduction



UPRVUNL is wholly owned state thermal power utility with present generating capacity of 4683 MW, operating 5 Thermal Power Stations within Uttar Pradesh. Poised to contribute in the growth of state, we're in the process of adding further 1250 MW capacity to our existing fleet by year 2013.

Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) was constituted on dated 25.08.1980 under the Companies' Act 1956 for construction of new thermal power projects in the state sector. The first Thermal Power Station constructed by UPRVUNL was Unchahar Thermal Power Station of 2X210 MW capacity and it was transferred to NTPC on dated 13.02.1992. On dated 14.01.2000, in accordance to U.P. State Electricity Reforms Acts 1999 and operation of U.P. Electricity Reforms Transfer Scheme 2000, U.P. State Electricity Board, till then responsible for generation, transmission and distribution of power within the state of Uttar Pradesh, was unbundled and operations of the state sector thermal power stations were handed over to uprvunl.Today it is looking after operations of five thermal power plants located in different parts of U.P., with a total generation capacity of 4683 MW with planting facility as follows.OVERVIEW OF THE COMPANY PRODUCTION


ANPARA,3X210 MW3X210 MW = 630 MW1630 MW

SONEBHADRA2X500 MW2X500 MW = 1000 MW

OBRA,2X50 MW2X50 MW = 100 MW1288 MW


5X200 MW5X200 MW = 1000 MW

PANKI,2X110 MW2X105 MW = 210 MW210 MW


PARICHHA,2X110 MW2X110 MW = 220 MW1140 MW

JHANSI 2X210 MW2X210 MW =420 MW

2X250 MW2X250 MW =500 MW


ALIGARH1X110 MW1X105 MW = 105 MW

1X250 MW1X250 MW = 250 MW


As on 01.01.2013 UPRVUNL has 1241 executives and 6996 non-executives on its roll.

Among these units, many of them have crossed their useful working life of 25 years, and some of them are closed since long, amounting to an effective available capacity of 3777 MW only. As against the peak demand for power at over 7500 MW, the actual average generation in the State is around 2600 MW only. Add to this the imports of about 3000-3200 MW of power, the total availability of power to the consumers is around 5400-5600 MW, leading to a deficit of 25-28%. Panki Thermal Power Station


Panki Thermal Power Station (PTPS), located about 16 km away from Kanpur railway station, was started with two units (I & II) of 32 MW each (2X32 MW). The Power house was formally inaugurated and dedicated to the Nation by the then prime minister Mrs. Indra Gandhi on 7th Sept 1968.

The first unit (unit no.1, 32 MW) was taken on commercial loading on 4th Oct 1967.

The second unit (unit no. 2, 32 MW), similar to the first unit was commissioned on 14th July 1968 for commercial loading.

After generating power for about 28-29 years, 2x32 MW units had completed their rated life.

Those units were become obsolete and technically not competent to meet out new pollution norms prescribed by the statutory bodies.

First unit was closed on 30th November 1995 and permanently deleted from installed capacity of the station by the Central Electricity Authority (CEA) w.e.f. 31st Aug 1999.The second unit was closed on 18th April 1997 and permanently deleted from installed capacity of the station w.e.f. 10th June 2005.Extension of Plant In 1976-77, two new units (2 x 110 MW units), manufactured, supplied, installed & commissioned by BHEL, were introduced as an extension of this power plant.Unit no. 3 (110 MW) was commissioned on 10th Nov 1976.Unit no. 4 (110 MW) was commissioned on 24th March 1977. The units 3 & 4 are exactly identical.These units have been de rated to 105 MW each by the Central Electricity Authority (CEA) w.e.f. 11th Jan 1990 resulting in present installed capacity of the station as 210 MW.The units were equipped with Electro Static Precipitators (ESPs) in Jan 1993 (unit III) and July 1996 (unit IV).TechnicalFeaturesof 2X110MW Units

The 110 MW 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 Coal is fed to the boiler using pulverized coal feeding technology with semi direct type of firing system.

Coal is pulverized in pulverizes (drum type coal mills) and stored in pulverized coal bunkers (PC bunkers), from where it is pneumatically transported and supplied to the boiler through primary air.

Total required air for combustion is supplied in furnace through 02 nos. of ID fans, 02 nos. of FD fans & 02 nos. of PA fans.

Primary air consists of approximate 30% quantity of total required air and remaining 70% quantity is supplied as secondary air.Turbo-generator Turbine is of multistage, impulse reaction type consisting three separate turbine cylinders arranged linearly.

These turbine cylinders are of high pressure (HP), intermediate pressure (IP) and low pressure (LP) turbines. The rotor shafts, of turbines and generator are connected in tandem compounding.

Main stream is fed to the high pressure (HP) turbine from the boiler and exit steam from HP turbine is taken back to the re-heater section of steam generator (boiler) through cold reheat (CRH) steam line to re heat it up to the temperature of main stream (540C).

The steam from intermediate pressure (IP) turbine goes to low pressure (LP) turbine and finally exhausted in condenser through low pressure (LP) turbine. LP turbine is of double flow type. Generating Units at Panki Thermal Power Station

All the units of this station are coal fired thermal power plants, having a total generating capacity of 210 MW and consists of following units -StageUnits No.Installed CapacityDerated CapacityDate of SynchronizationDate of Commercial OperationOriginal Equipment Manufacturers

1.132 MWDELETED04.10.1967

232 MWDELETED14.07.1968

2.3110 MW105 MW10.11.197629.01.1977M/s Bharat Heavy Electricals Limited.

4110 MW105 MW24.03.197629.05.1977M/s Bharat Heavy Electricals Limited.

The coal to all these units is fed from coal mines of BCCL, ECL by means of railways.

Anpara Thermal Power Station

Anpara Thermal Power Station is located at Anpara in Sonbhadra district in the Indian state of Uttar Pradesh, about 200km (120mi) from Varanasi on the Varanasi - Shakti Nagar route.

OperationsThere are in total seven operational units, all of which are coal-fired thermal power stations. The machinery for the Anpara A ( 3 units) are from Bharat Heavy Electricals Limited. Anpara B (two units) from Mitsubishi Corporation, Japan.Machinery for Anpara C were sourced by Lanco power. Machinery for Anpara D is sourced from BHEL. The coal to all these units is fed from Kharia, Kakri and Beena open coal mines of NCL by company owned freight trains, a merry go round system maintained by UPRVUNL and previously on roads by Dumpers.

CapacityAnpara A station and B station has a capacity of 1630 MW in total. Each of the first three units has a capacity of 210 MW and the other two have a capacity of 500 MW each. The last unit of 500 MW was commissioned in 1994.Anpara C has installed capacity of 2X600 MW. Under construction Anpara D will again have 2X600 MW installed capacity.

Anpara was initially made in two phases, Anpara A (last unit commissioned in1983) & Anpara B (last unit commissioned in 1994) by erstwhile UPSEB. In year 2007 Anpara C was allotted to be constructed in PPP sector domain. The new power plant made under PPP by Lanco-infrastructure and Run by Lanco power 2x600 MW. Last unit of Anpara C was commissioned in 2012. Under State government's flagship power-generation company UPRVUNL, a new unit Anpara D is under construction in full swing. Units are configured for generating 2x600 MW and are manufactured by BHEL. Plant is expected to be operational in 2014.

Plant Location

The Anpara Power Plant is located near village Anpara on the bank of Rihand reservoir in the district of Sonebhadra (Uttar Pradesh). It is about 34 km from Rihand Dam on Pipri-Singrauli road and about 200 km from Varanasi. Varanasi is connected by air/rail and road route from other major cities. Generating Units at Anpara Thermal Power Station

All the units of Anpara TPS are coal-fired thermal power plants, having a total generating capacity of 1630 mw and consists of following units - StageUnits No.Installed CapacityDerated CapacityDate of SynchronizationDate of Commercial OperationOriginal Equipment Manufacturers

11210 MW210 MW26.03.198601.01.1987M/s Bharat Heavy Electricals Ltd.

2210 MW210 MW28.02.198701.08.1987M/s Bharat Heavy Electricals Ltd.

3210 MW210 MW12.03.198801.04.1989M/s Bharat Heavy Electricals Ltd.

24500 MW500 MW19.07.199301.03.1994M/s Mitsubishi Corporation, Japan

5500 MW500 MW04.07.199401.10.1994M/s Mitsubishi Corporation, Japan

The coal to all these units is fed from Kharia, Kakri and Beena open coal mines of NCL, by means of a marry-go-round system, maintained by UPRVUNL. Obra Thermal Power Station

It is in district SONEBHADRA about 13 KM from CHOPAN railway station, about 8 KM off SHAKTI NAGAR road. It is about 125 KM from VARANASI, which is connected by air/rail and road route from all major cities.Obra power plant has 1550 Megawatt power. It is first 200MW Power plant in India. It also a thermal Plant has 5*50+3*100+5*200=1550MW.The thermal station has 13 units with the total capacity of 1550 MW and the Hydel has a maximum capacity of 99 MW. But the power plant has passed an upgrade of 2 more units with a power generation capacity of 660MW which is expected to be ready by 2011. The power plant will surely help coping the deficiency of electricity. One of the major achievements for the plant is that it was the Asia's number 1 Thermal Power production plant in the 1980s.

Generating Units at Obra Thermal Power Station

All units of this power station are coal fired thermal power plants, having a total generating capacity of 1288 MW. The power station consists of following units -StageUnits No.Installed CapacityDerated CapacityDate of SynchronizationDate of Commercial OperationOriginal Equipment Manufacturers

1150 MW50 MW15.08.196715.08.1967BOILERS FROM M/S TAGANROG & M/S L M Z OF USSR

250 MW50 MW12.02.196811.03.1968-DO-

350 MWDeleted13.10.196813.10.1968-DO-

450 MWDeleted11.06.196916.07.1969-DO-

550 MWDeleted30.07.197130.07.1971-DO-

26100 MWDeleted04.10.197304.10.1973M/s Bharat Heavy Electricals Limited, India.

7100 MW94 MW14.12.197514.12.1975M/s Bharat Heavy Electricals Limited, India.

8100 MW94 MW15.09.197501.01.1976M/s Bharat Heavy Electricals Limited, India.

39200 MW200 MW26.01.198015.03.1980M/s Bharat Heavy Electricals Limited, India.

10200 MW200 MW14.01.197906.03.1979M/s Bharat Heavy Electricals Limited, India.

11200 MW200 MW31.12.197714.03.1978M/s Bharat Heavy Electricals Limited, India.

412200 MW200 MW28.03.198129.05.1981M/s Bharat Heavy Electricals Limited, India.

13200 MW200 MW28.07.198229.07.1982M/s Bharat Heavy Electricals Limited, India.

The coal to all these units is fed from coal mines of BCCL, ECL by means of railways. Parichha Thermal Power Station

It is located in district JHANSI about 25 KM before JHANSI, on KALPI-JHANSI road. Jhansi is well connected by air/rail and road route from all major cities.

Generating Units at Parichha Thermal Power Station

All the units of this station are coal fired thermal power plants, having a total generating capacity of 1140 MW and consists of following units

StageUnits No.Installed CapacityDerated CapacityDate of SynchronizationDate of Commercial OperationOriginal Equipment Manufacturers

1111011031.03.198401.10.1985M/s Bharat Heavy Electricals Limited, India.

211011031.03.1984Dec.1984M/s Bharat Heavy Electricals Limited, India.

23210210May.200624.11.2006M/s Bharat Heavy Electricals Limited, India.

421021028.12.200601.12.2007M/s Bharat Heavy Electricals Limited, India.

3525025015.05.201217.07.2012M/s Bharat Heavy Electricals Limited, India.

625025017.09.201218.04.2013M/s Bharat Heavy Electricals Limited, India.

The coal to all these units is fed from coal mines of BCCL, ECL by means of railways.

Harduaganj Thermal Power StationHarduaganj Thermal Power Station is located at Qasimpur Power House Colony which is 1km distance from Harduaganj Railway Station at Harduaganj in Aligarh district in the Indian state of Uttar Pradesh, about 18km from Aligarh.

CapacityHarduaganj Thermal Power Station has an installed capacity of 665 MW. 1 Unit of 60 MW capacity (it is unit number fifth).

1 Unit of 110 MW capacity (it is unit number seventh and its capacity derated to 105 MW).

1 Unit of 250 MW capacity (it is unit number eighth).

1 Unit of 250 MW capacity (it is unit number ninth).

Its last unit (ninth unit) of 250 MW became operational in June 2012. Generating Units at Harduaganj Thermal Power Station

All the units of this station are coal fired thermal power plants, having a total generating capacity of 415 MW and consists of following units StageUnit No.Installed CapacityDerated CapacityDate of SynchronizationDate of Commercial OperationOriginal Equipment Manufacturers




BTPS 150 MWDELETED02.03.196821.04.1968USSR

250 MWDELETED11.01.196923.01.1969

355 MWDELETED17.01.1972Mar.1972M/s Bharat Heavy Electricals Limited.

455 MWDELETED09.09.1972 18.09.1972 M/s Bharat Heavy Electricals Limited.

CTPS 560 MW60 MW21.03.197714.05.1977M/s Bharat Heavy Electricals Limited.

660 MWDELETED21.08.197726.10.1977M/s Bharat Heavy Electricals Limited.

7110 MW105 MW31.03.1978Aug.1978M/s Bharat Heavy Electricals Limited.

HTPS Extn.8250 MW250 MW10.08.201101.02.2012M/s Bharat Heavy Electricals Limited.

9250 MW250 MW02.04.2012M/s Bharat Heavy Electricals Limited.

The Coal to all these Units is fed from Coal Mines of BCCL, ECL by means of Railway.


Vision statements have become fashionable for every organization. This helps galvanize energy of stakeholders to provide support to the mission of the organization. However for many organizations it turns into a bitter dream causing demoralization among stakeholders. This 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. UPRVUNL will avoid this vision trap by avoiding such possible pitfalls. The vision statement should be broad enough to capture the future diversity of actions by bearing on internal competencies, and changing when the environment changes. We sate the vision statement as follows:

Act as catalyst in making Uttar Pradesh an electricity surplus state by 2018 and help energize every electric device in the country beyond 2018

Catalyst: This is because UPRVUNL cannot hope to accomplish the growing energy needs on its own but by developing partnerships with many other suppliers, competitors and buyers.

Electricity surplus State: Based on the demand projections UPRVUNL 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 .

Help energize every electric device in the country: UPRVUNL will not stop functioning in 2018 but will continue to add to the generation of electricity, if need be by other input methods

Beyond coal: hydrocarbons, hydropower, nuclear, non-conventional sources by learning through R&D and collaborations with technology partners; maintaining a catalytic role.Mission

While almost every organization 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. Typically firms and corporations articulate their mission statements which drive from the vision, written or unwritten. While visions are futuristic intensions, aspirations and dreams, mission seem to reflect of either short term future direction or the businesses they operate in. The 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. Base on these guidelines we develop below the components of the mission statements and then a more integrative mission statement.Obligation to stakeholders

There are many stakeholders who have stake in the business of UPRVUNL: Shareholders, lenders, the UP 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 recognize that these stakeholders benefit or get impacted by the operation of UPRVUNL 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 minimize these conflicts so that their positive energies are utilized to realize the sated vision. Obviously it must address their emotions and their interests. We may stateWe will serve each of our stakeholders amicably through a democratic processScope of Business

This 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. While 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.

UPRVUNL will remain in the generation activity through thermal power stations using predominantly coal and gas with oil as auxiliary feed. However it may get involved with the generation by using other raw material like LNG and hydro electric generation as and when the need so arises, besides working with partners in non-conventional/ 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. Any other ventures beyond the thermal power based on coal feed it will explore the joint venture route as and when the opportunity arises.

Thus, UPRVUNL strives to produce and supply electric energy in the most efficient mannerSources of Competitive advantage

No business survives in the long-run without any competitive advantage or uniqueness. Although 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 UPRVUL 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 incentivizing its technical people which are engineers of high quality, which most competitors do not have access to. This can define its distinctiveness if it builds enabling systems for engineers to deliver their best. Therefore smoothening the operating systems which can provide it the distinctive competence that it needs to compete in the future competitive environment.

Therefore it will compete on the basis of its technical core.View of the future

UPRVUNL will be the most efficient and one of the most responsive electric energy supplying utility in the country with a pride in its technical core with a leadership role in the state of Uttar Pradesh where it will be leader in catalyzing the resources for the development of the State .Mission StatementUPRVUNL will be leader in generating, transmitting and distributing electric energy most efficiently through collaborations with its partners by using its technical people as its Competitive advantage while balancing and serving the interest of all of its stakeholders.Corporate Values

1. Excellence in everything it does

2. Respectful and fair to each employee

3. Committed to nurturing of its technical talent

4. Fair to its partners

5. Will remain environmentally and socially responsible.

Corporate Objectives

1. Build a strong competence in customer responsiveness by leveraging human resources through training, development and motivation.2. Expansion and growth by improving the efficiency of existing plants and adding new generation capacities.3. Reducing supply chain bottlenecks and operating costs.4. Diversifying both into vertical chain activities and diversifying the input base that lead to the leading market share.5. By taking advantage of economies of scale becoming the lowest cost generator of

Electricity in the state and the country.6. Partnering with other entities to minimize investment needs and reducing the

Investment risk.7. Becoming one of the leaders in environmental management and socially responsible citizenship in its peer group. In order to meet the objectives, mission, vision of the corporation, UPRVUNL needs to take stock of its Strengths and weaknesses and assess the environmental future threats and opportunities in order to allocate resources judiciously. There we attempt the SWOT Analysis.SWOT Analysis


1. Ownership is with state government that reduces the risk of liquidation who can make investment in public interest should the things turn hostile.

2. It has R&D support from Central Electricity Authority keeping the research and development costs almost zero.

3. It is easy to get land and environmental clearances from respective authority without suspecting foul play.

4. 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.

5. UPRVUNL has a rich history and competence of generating electricity through coal and oil, water with priority allocation of inputs.

6. The input costs are cushioned against market price vagaries and thus helps in realizing costs through regulated tariff system.

7. 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 TPS like water, transport access.

8. It has the largest market share of about 50% of capacity in generation business as compared to its competitors. The actual capacity for generation is 3933 MW as on 31st March, 2011 after excluding unit 6 of Obra and unit no. 3 of Harduaganj.

9. Assured market reducing the cost of marketing because of historical relationships and scarcity of electricity. Demand is not an issue for next 10 years.

10. Most of the plants are depreciated leading to less strain on the balance sheet.

11. It has the largest number of technical manpower in the state and one of the largest in the country that is well experienced.

12. The percentage of youngsters is growing beyond 50% (about 750 out of 1450) at executive (technical) level which are well educated, getting good training and are very motivated.

13. Corporate values are already articulated and are in place.

14. Security of employment provides stability to the knowledge base which does not migrate continuously and good compensation policy.


1. Being state owned organization it suffers from slow decision making process and dealing with less risky but expensive suppliers and buyers which also limit speed of decision making.

2. Because of SOE employees do not have commercial mindset.

3. The top management comes from Government which also has its negative side: the commitment levels are not very high because of uncertain tenure.

4. Cost, quality, and schedules for works lower efficiency in O&M and Project


5. Has already adequate input linkages.

6. Three Full time directors positions are vacant, substituted by part time director finance, and former technical director serving as advisor. Post of Director Personnel is vacant.

7. Disputes on seniority are quite frequent which delays the promotion on senior positions since last many years lowering motivation.

8. Promotions are not based on competence but other politically determined criteria.

9. Old organization continues which is not consistent with todays ground realities.

10. Induction on compassionate ground has resulted in work inefficiencies and high cost work force, which UP Government has already stopped in its own departments.

11. Roles and responsibilities are not commensurate with compensation, which are needed to be defined and refined.

12. Deferred or partial payments by customers adversely affect the cash cycle.

13. It is difficult to mobilize equity and thereby loans due to profit/loss account losses and because government also takes very long time in implementing financial recommendations.

14. Supply of coal comes from distantly located pit heads increasing input transportation costs.

15. Government ownership provides cushion against inefficient working resulting in lower efficiencies.

16. Very high age of plants keeps the breakdowns as frequent resulting in lower PLF and high input costs.

17. Project implementation is a very serious drawback for lack of project management skills and bureaucratic procedures.18. Poor contract reinforcement with equipment suppliers like the virtual monopolist BHEL resulting into high cost and time overruns.

19. Coal linkages for plants are inadequate for future needs.

20. Aging work force has acted as a drain for long time which is addressed only recently.

21. Coordination and communication processes are very slow.

22. Technology enablers such as IT have only been addressed recently whose implementation is moving at a slow pace.

23. Inadequate focus on regulatory affairs. Handled at plant level instead of corporate level.

24. Auxiliary consumptions are very high compared to its competitors like NTPC.

25. Political interference at the level of supplies (favored), operations- lack of proper allocation of manpower at right jobs/ place, sub-contractors, and employees (transfers/promotions).

26. Lower PLF compared to competitors and national average makes operations expensive.

27. It is estimated that the balance sheet may have the losses until 31st March 2010 to the tune of Rs. 585.7 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. Opportunities

1. BOP and BTG can be awarded through bidding system instead of single supplier as is given to BHEL which do not adhere to timelines of the contract who do not pay penalties for project time over runs.

2. Possibility of increasing revenues through CDM, PAT (Perform, Achieve and Trade) mechanism of BEE (Bureau of Energy Efficiency).

3. There is a good opportunity to increase the PLF close to national average of 75% thereby rising higher generation of electricity.

4. Revenues can further increased by gains from UI provisions through disciplined management of its resources.

5. There is going to be about 10-20% gap until 2017 in the demand and supply which will ensure that whatever is produced is consumed- no demand risk

6. Fuel security through JVs with mining companies.

7. Productivity improvements through usage of IT applications.

8. Improving financial health by setting outstanding receivables from UPPCL through interdepartmental coordination.

9. New projects can improve the PLF, and higher energy generation which will have positive impact on the financial health.

10. Automated equipments / super critical plants can produce higher levels of energy at reduced prices.

11. Renewable sources especially solar energy can be a good opportunity in future especially in UP which eventually translate into more energy with lower costs

12. Availability of land from ash ponds, which can be utilized for further expansion by converting that land planting Jatropha plants which can be converted into diesel, and we can earn carbon credits too.

13. Scrapping the non-functional units that are officially deleted. They can be sold out in market and vacated land can be used for new plants eg. Obra and Harduaganj units. The scrapped units can be sold through MMTC.

14. Scope for Joint 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.

15. Value chain partners and competitors are willing to join forces to produce electricity like NTPC, Coal India limited, even transmission and distribution companies.

16. The distribution sector is opened for participation by generation companies improving scope for vertical integration.

17. Government, including SERC is very responsive and accommodating if willing to improve electricity generation 3 Threats

1 .BTG had been given without tender to BHEL, which has become a liability because of noncompliance of the agreement- non competitive rates and late completion of the projects against DPR/Work Order.2. BHEL has taken advance money for R&M but may not start work even in future. Which may result in closure notice from Central Pollution Control Board and other regulatory authorities, which may cause higher penalties and closure of old plants draining production capacity and profitability.

3. Integrity of employees, suppliers as mafias with political linkage are a serious threat to the functioning of UPRVUNL.

4. The deregulated generation sector may see more competition in future which may threaten the leadership position of UPRVUNL Operations.

5. New plants have long gestation periods making the progress slow towards leadership position.6. The aging plants under perform but maintenance cannot be done on schedule because of demand pressure.

7. Pollution control regulation is becoming more stringent under international guidelines whose compliance can threaten closure of many units, if not acted upon in time.

8. Coal mafia continues to exert pressure on the prices, quality and quantity of coal.

9. The 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.

10. Government is rather reluctant to provide additional equity required for expansion of capacities and thus affecting expansion plans.

11. The skill gap appeared because of attrition due to retirement or lack of training in ABT Regime.

12. Continuing government mindset may result in serious lag in financial viability of future.

13. The state of monopoly has already been threatened by larger firms with adequate investment capacity which is likely to threaten the leadership position of Nigam.

14. At some point in time the UP State may get trifurcated reducing the power of the Nigam as happened in case of Uttrakhand.

15. The stranglehold of politician may become worsen in future in curbing the freedom of the professionally managed corporation, because of 100% ownership.

16. Increasing inflation may lead to higher interest rates, wages and cost of electricity unless competition brings in commensurate reduction in operating costs.17. The 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.Corporate & Business Strategies

We classify our recommendations into ten broad categories: managing dynamic environment, business portfolio, Smoothening supply chain, Operations including project management, Organizational restructuring, Human Resource management, Board of Directors, Investment management, Employee welfare and Corporate Social responsibility.

Managing Dynamic Environment

1. There is a need for a business planning Department to collect, generate and collate data so that informed decision can be made. This unit can scan information regarding customers, suppliers, regulatory changes, business opportunities, partnership opportunities, Human resource related practices, new technologies, competitor activities, political changes, social changes, economic and financial matters, pollution, energy audit reports, related technologies, issues of sustainability.

2. This department can be headed by a Director Corporate Strategy (25-30 years experience) trained or experienced enough in strategic Planning who may be supported by other managers (see corporate structure) and young business analysts (2-3 years experience with MBA degree) with some specialization in economics, statistics, environmental engineering/ pollution control, business development, with skills in competitor and customer analysis, a financial manager, an electrical technologist.

3. The roles will be to analyze related issues through different disciplinary perspectives and build a comprehensive view of the issue at the planning levels. They will also be responsible to continuously review the current business environment and suggest future trends with respect to new emerging trends. They will assist the operating managers on various issues including the related data/ information availability. Some of the hard data will be stored in the computers which will be accessible to anyone who want any relevant information. They will help set up monthly, quarterly targets, annual targets and plans and 20 years rolling plan. They will also alert respective operating managers about any significant changes that might affect their functions. We 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 UPRVUNL as we have recommended in the mission statement. This unit will work as a brain of the corporation. Needless 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 organized and disciplined decision making which is right now in a very ad hoc and rudimentary form.

Business Portfolio

1. Consider continuous evaluations of each generating unit which can perform above 60% PLF with low maintenance, otherwise scrapped. We have analyzed below that the new capacity additions are more beneficial than renovation & modernization beyond certain performance point.

2. Any future generating unit should not be below 500 MW as the new entrants will come with super critical plants who will threaten the leadership position of UPRVUNL. The larger plants have higher fixed costs but lower running expenses and thus making smaller plants or less capacity plants as unviable in 10-15 years time period.

3. 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 UPRVUNL to maintain its leadership profitably at least until 2017. We need to explore new plot of land for future expansion

4. We can consider LNG based thermal plants if the LNG linkages could be tied up in the medium term.

5. 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. The special interest areas could be solar energy, Jatropha plant based fuel. This may help in getting renewable sources of energy. The technological Institutes may be made partner in R&D besides exploring R&D based small firms or joint partners for exploring newer technologies (0.5% of sales could be allocated to this unit on new product or process development). They pay offs could be long-term.

6. In addition we put up at least limited resources (1%of sales) in R&D and get external consultants to assist in R&D lab to find ways and means of improving operational efficiencies in plant which look for reduction in auxiliary consumption in operations and examine the whole input supply chain.7. Also 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. Part of employees could be shifted to the joint venture. This will give a chance to bring in efficiencies in our own plant as the JVs can work and learn in less bureaucratic environment away from political interference or operational fire fighting.

Smoothening Supply Chain

1. There had been major problems in getting BTG Equipment because BHEL had been a sole supplier, which had not delivered equipments in time whether related to R&M or new turbines, which is the major cause of concern at UPRVUNL as many projects are delayed because of BHEL. It is suggested that both BTG and BOP supplier base must by necessity be diversified and the tendering process strengthened. There are now international vendors in these areas which are allowed by the government to sell equipments in the county.

2. On oil supply there are not many problems as we source material from Sate owned oil enterprises, although adulteration issues can be more rigorously monitored. However coal supplies that reach the plants are either underweight, or of poor quality. The corporation has taken many effective steps like the management has appointed agents who can procure the coal in right quantity and quality. The 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. The 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 managers/ engineers representing each plant is constituted which will make further recommendations on the issue.Operations including project management

1. Barring a few plants, there is more focus on administration by the engineers than on engineering work resulting into poor operations management. There are multiple vendors in the same plant and across different plants. It is suggested that this function be centralized and engineers are relieved from administrative functions as much as possible. There must be a single vendor development department for works at the plant level under the direct supervision of the Chief of the plant. The tender must be invited through UPRVUNL website in order to reduce the impact of local political influence. The vendor should also be empanelled. There should also be a head office representative in the vendor selection committee at the plant level.

2. Inventory and store systems should be computerized and proper system established so that the items can be identified easily. This can be automated with the help of inventory order system available from many vendors. Physical verification each year should be carried out regularly and physical stock reconciled with the database.

3. ERP needs to be implemented urgently so that data is available for informed decision making. It calls for an experienced vendor especially with organizations in electricity generation. The store/purchase employees should be trained in IT applications for store and purchase.

4. Ash disposal is a major concern around the plants. It is suggested that like NTPC regular auction be carried out. The neighborhood cement manufacturing companies/ road construction companies should be invited to submit tenders/ bids.5. The 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 runs? 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.

6. Although utilities maintenance is found to be reasonably all right except ash disposal, There is need for continuous improvements after setting standards for each activity, including, water, land, roads, electrification, hospitals. Schools etc in proper form.

7. The bench mark studies against CEA norms and/or NTPC comparable plants indicate that most of UPRVUNL plants are underperforming: PLF, availability factor, Station Heat Exchange Ratio, Auxiliary consumption, outages; which have adverse impact on the cost/ MU and also the profitability of the corporation. The reasons of course are old plants, poor execution of R&M, O&M and delayed projects for up rating or new capacity additions. The targets must be revised upward. As a thumb rule there ought to be at least 2-3% improvement in each operational parameter with 2010-11 as base year. We expect until 2017 an improvement of 12-15% over the base year. The same can be translated into each plant and unit so that disaggregated targets can be set. Needless to mention that in addition to enabling corporate environment, including, restructuring of

Organization, cadres, smoothening supply chain; monetary incentives be linked with the weighted average of PLF, Auxiliary consumption, SHR, Outages with 40%, 30%, 20%, 30%. If the savings are indeed achieved which may have impact of 8-10% every year. The cash incentives of 1-2% of the savings or growth may be passed on to employees.8. The main reasons of lower performance are the aging plants, lower machine loads, forced outages, high auxiliary consumption, Station Heat Rate, and also because of slow progress of R&M due to lack of structural focus and non-supply of equipments by BHEL, who go scot free without penalties . Serious competition among vendors is introduced by inviting tenders from international suppliers.

9. Energy accounting and billing are still weak areas and there is something to learn from NTPC. That is why beside organizational and cadre restructuring, training and development are emerging key thrust areas especially Strategic management, HR, financial and project planning and implementation.Human resource management

The analyses carried out by the HR department of the Nigam indicate excess manpower by any standard. The major concerns indicated are

1. Many units are deleted (Panki 2 units, Harduaganj 4 units, and Obra 3 units) but the positions have not been scrapped. Contrarily some of the new units are established: 2 units are Paricha and 2 units at Hurduaganj. The new positions are not created inducing murkiness in the manpower allocation. This notwithstanding the CEA norms is available beside NTPC benchmarks.2. Similarly positions required for new tasks have not been articulated: HR, Fuel, R&M, Environment, IT and commercial. These entities are working against positions sanctioned under PPMM, thermal operations and plants which are needed to be regularized. The commissioning staff required for new projects has not been provided with new positions sanctioned. 3. There are shortages in technical cadres as against the support staff. Although there appears to be shortage against the sanctioned staff across board but many units have been closed down.4. There 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 Resultant Seniority concept. There is lack of specialization. No clear cut policy exists besides the relative disliking for operational jobs as against project jobs. This requires job restructuring of work which is being currently carried out by E&Y Consultants.

5. Engineering staff is dominated by non-degree holders due to promotions.

6. The 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.

7. There 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. To minimize 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 block/ cadre system like E-1, E-2, E-3, E-4 AND E-7 and E-8 and above, to provide flexibility in promotions. Cadre restructuring can be inspired by the system implemented at NTPC.

8. Training programmes should be organized according to the competence assessment and training gap thereof with respect to hard and soft skills, including leadership development programmes Executive Engineer levels and above. The lower level employees should also be given substantial training in domain areas.

9. At least 3% of revenue must be allocated to training/ education and development purposes of staff, officers and management.

10. Looking at scarcity of educated and trained manpower it is extremely urgent to begin recruitment at AE level.

11. There is a necessity to set up examination system before promoting offices from lower to SE level. Thereafter it may be based on personal interviews with selection committee dominated by independent experts. In fact a one-year MBA degree from A-rated institutions is must for SE level and above which can be sponsored by the Nigam with a bond of 3 years post-sponsorship of MBA. Those already with MBA from C-grade institutions should also be sent for A-rated MBA programmes. Those with A-rated MBA s may be sent to foreign universities for short duration courses of the length of 15 days to 3 months, which are likely to be specialized in project management, operations management, HR management, Strategic management and financial management . These recommendations are specifically relevant because UPRVUNL is expected to compete on the basis of human resources.

Organizational Restructuring

1. Organizational structure is designed keeping in mind how to divide the overall organizational 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. The functional structure creates high level of specialization and provides the basis of competence on the functional axis of the organization like supply chain, operations, marketing & sales and customer service. The staff functions like, HR, R&D, procurement and strategy provides the support to functional line managers. However it results in functional silos and very high information overload at the staff functions

2. The divisional structure helps reduce the information overload and treats the divisional heads as CEOs of their own business. Strategic & financial responsibility rests with the divisional heads who report to the corporate CEO and consults the corporate top functional experts. This structure provides for every division all the functional expertise as is the case with functional structure. There is duplicity of functions in this structure and thus raises the cost of organizational structure. However the benefits overweigh the costs because of clear accountability and profit responsibility. In sum, each plant should be converted into a profit centre with Profit and loss responsibilities.3. So far UPRVUNL 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 managements positions were not filled up because of logjam in the promotion policy. The operating role and project roles were almost confounded resulting in poor accountability, slow speed of decision making and poor monitoring creating poor economic performance. Director technical was looking after the whole technical areas and Director HR looking after the whole organization along with director finance and three of them reporting to CMD. 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 underemphasized in the structure like vigilance & Audit, Commercial and regulatory which in the E&Y proposed corporate structure capture the importance from Governance perspective.

4. The Head Corporate strategy should also have to be designated as Director Strategy to highlight the importance and quantum of work involved and likely to be involved in assisting the divisions (plants) in strategy formulation. The subunits below director should have an environment scanning/ intelligence group which collect internal and external information and which should report to the Director Strategy. It should have committee members drawn from PRAGATI, Business Excellence Initiatives, and IT, beside two members from Corporate and Business Strategy areas. Similarly all other corporate functions should be headed by Directors (Projects, Operations, Finance and HR). These functions should have committees in each area drawn from sub-units reporting to them. These committees meet every bi-weekly to appraise the progress in each area. Besides, it is proposed to have top executive cross-functional team consisting of 4 corporate Directors and 5 Plant directors each representing the plants. This committee should meet every month to monitor the progress, trouble shoot difficulties and bottlenecks.5. We also propose a replica of the executive team at the plant level involving officials of various specializations at plant level. The Business strategies & plant level operational strategies should be developed at plant level under the leadership of Director of each plant.

6. The decision of unit closer in the plant, R&M and up rating or diversification will vest with the CMD of Nigam assisted by the top executive team. However the proposal can be mooted by plant directors, which can be reviewed, whetted by the corporate executive team. Finally these proposals could be submitted to the BOD. This committee can have special invitees from audit/vigilance etc if the need so arise. The Directors of the Plants likewise have top plant management team representing functional plant heads.Board of Directors

1. The role of Board of Directors is to provide the direction and guidance to the top management, whet investment decisions (closure, sell off, joint ventures, new plant/ unit additions), 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. The two main areas of concern in the BOD are the composition of Board members representing different interests and maintaining strategic direction of the corporation. Since the BODs have less time to look into the details of each decision the Board Committees become essential toll for governance of the corporation..

Board of Directors

Currently there are 10 members of the Board as given below:






6. PRINCIPLE SECRETARY (ENERGY), Group7. SECRETARY (FINANCE), Group8. PRINCIPLE SECRETARY (LAW), Group9. PRINCIPLE SECRETARY (BUREAU OF PUBLIC ENTERPRISES), Group10. PRINCIPLE SECRETARY (PLANNING), Group2. It is clear that consistent with the UP Government ownership most of the Board members are from the government of Uttar Pradesh. However, it can become counterproductive as many of these members are reprinted on large number of Boards 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. Often representatives are sent for Board meetings with little value addition from the real board members who are ex-offcio members. The board members also bring with them relationships with the outside world beside the variegated expertise. Besides, to bring more transparency it is suggested that outside independent board members be brought into the Board, 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. We propose the following Board constitution.