Internship report of genco 3 Wapda Muzafar garh

INTERNSHIP REPORTSUBMITTED TO

INTERNSHIP INCHARGESIR TAYMOOR-UL-HASSAN

SUBMITTED BY

RAASHID JAVEDROLL # 32

MBA (M1) 4TH

SESSIOON (2011-2015)

DEPARTMENT OF MANAGEMENT SCIENCES

Internee: Raashid Javed (Genco-III) Northern Power Generation Company Limit

2 | Internship Report The Islamia University Of Bahawalpur






PREFACE

Practice makes a man perfect and practical knowledge is essential in order to

introducing with the practical life. Theoretical knowledge is not such important without

with combination of practical knowledge. It is the part of its academic curriculum to do

internship of MBA student to various business concerns with view to allowing students

to get opportunity to acquire practical and professional knowledge. As the partial

fulfillment of MBA in marketing the writer of this report was also assigned the task of

preparing the term paper, the topic was “(Genco-III) Northern Power Generation

Company Limited”. To adjust myself in such a large organization was not an easy task,

but by the grace of Almighty Allah aids my internship in a befitting manner and I learned

a lot about the overall generation company. The report has been prepared after careful

observation of the all component of organization. This report is a thorough essence of

my rigorous studies which I undergone through in a period of two months in a

generation company. I have exclusively studied and observed the operations/

functioning of the company and tried my best to abreast myself with all the dimensions

of the generation company. It was a great experience to work there and contribute

handsomely in the process of appraising its pros and cons and feeling to be a significant

part of the company. I am thankful to all those who helped me in one-way or the other

and guided me in the preparation and compilation of this report in a presentable

fashion.



ACKNOWLEDGEMENT

Success and achievement is possible only through hard work, determination and strong

will. We are grateful to ALLMIGHTY ALLAH who gave me the strength to think, plan and

act accordingly which make us possible to complete my internship.

Though it is a literary tradition to acknowledge the contribution and help by different

people and organization in the completion of an internship, but as a matter of fact some

words cannot express our gratitude to the various helping hands. It is very difficult to

appreciate each and every person for his contribution, but there is a standing

contribution of our advisor Sir Munir Abbasi, who was there with us at the time we

needed him and without his guidelines it would be difficult for us to complete this

internship successfully.

Thanks to all




DEDICATIONAt first dedicating this work to Almighty ALLAH, without his

mercy and sympathy I was not able to accomplish this work,

Almighty ALLAH gave me power and confidence to done my

internship and also HOLY PROPHET HAZARAT MUHAMMAD

(Peace Be upon Him) who is a light for humanity. I also

dedicate this work to my lovely parents with deepest

gratitude whose love and prayers have always been a source

of strength for me.


Table of contents

Contents NumbersEXECUTIVE SUMMERY 10

INTRODUCTION OF WAPDA 11

PAKISTAN ELECTRIC POWER COMPANY 14

THERMAL GENERATION 18

VISION AND MISSION 22

NORTHERN POWER GENERATION COMPANY LIMITED 24

Background 24

Introduction 25

Objectives 27

Goals 28

Hierarchy 29

Ownership 30

Authority fund 31

Capacity 32

Policy 35

Profile of bod and sr. Management 37

DEPARTMENTS 38

Material management 39

Human resource management 43



Management information system 47

Finance/ coordination wing 48

Business strategy unit 51

Marketing department 53

Monitoring and surveillance 56

Distribution department 57

Customer services department 59

Training center 59

Complain center 60

FINANCIAL ANALYSIS 61

SWOT ANALYSIS 77

Strength 78

Weaknesses 79

Opportunities 80

Threats 81

RECOMMENDATIONS 82

CONCLUSION 84

ANNEXURE 87



EXECUTIVE SUMMARY

According to internship requirement, I passed six weeks in Genco from 15-7-2013 to 29-

08-2013. This was so much learning period for me. This internship report is about

Thermal Power Station Muzaffargarh also named as GENCO_III. In GENCO_III ,there are

total 6 units in which Phase-I consists of 3 units of 210MW each and Phase-II consists of

2 units of 210MW each and a separate unit namely unit-IV having a capacity of

320MW.So a total of 1,370MW capacity of GENCO-III. The generators installed are all

furnace oil generators consisting of a steam turbine and having water tube Boiler. In this

report, different protections of generator and transformers are discussed. The circuit

Breakers and their types and relays and the role of instrument transformer are briefly

discussed. The importance of switchyard is given in detail. Later on, all types of motors

are put into light.

In this report I give introduction history of the Genco. I passed so many days in different

department’s Human resource, marketing, customer service cell, finance department

and management department. I describe working and functions of those departments in

this report. In this report I did SWOT analyses, financial analyses, projects of Genco and

projects which I did in Genco. This project gives to me as assignment which is also

helpful for the organization. So I give some recommendations and conclusion at the end.

INTRODUCTION OF WAPDA



WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as

a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction

to the development of schemes in Water and Power Sectors, which were previously

being dealt with, by the respective Electricity and Irrigation Department of the

Provinces.

Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA

and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and

hydropower development whereas PEPCO is vested with the responsibility of thermal

power generation, transmission, distribution and billing. There is an independent

Chairman and MD (PEPCO) replacing Chairman WAPDA and Member (Power) who was

previously holding the additional charges of these posts.

WAPDA is now fully responsible for the development of Hydel Power and Water

Sector Projects.

PEPCO has been fully empowered and is responsible for the management of all

the affairs of corporatized nine Distribution Companies (DISCOs), four

Generation Companies (GENCOs) and a National Transmission Dispatch

Company (NTDC). These companies are working under independent Board of

Directors (Chairman and some Directors are from Private Sectors).

The Companies are administratively autonomous and leading to financial

autonomy by restructuring their balance sheets by bringing their equity position

to at least 20 percent, required to meet the prudential regulations and to

facilitate financing from commercial sector (approved by ECC).

The Loan Liability Transfer Agreements (LLTA) has been signed with Corporate

Entities and execution of loan transfer is complete.

All Entities have the physical possessions of all their operational assets.

On 24th Feb. 2007 Ministry of Water & Power notified NEPRA approved Tariff for

all Distribution Companies replacing unified WAPDA Tariff.



Legal Agreements such as Business Transfer Agreements, Operation

Development Agreement, Energy Supply Agreement, Business Supplementary

Agreement and Fuel Supply Agreement etc. were executed between WAPDA and

Corporate Entities to facilitate commercial operations.

Regulatory instruments like Grid Code, Distribution Codes, Performance

Standard for Distribution Companies and Transmission Companies were drafted

and got approved from in 2007.

All major lenders gave their consent for transfer of their loan from WAPDA to

Corporate Entities, thus 326 loan assumption agreements were signed amongst

respective Companies, WAPDA and EAD (Economic Affairs Division) GOP.

CPPA is established under the coverage of NTDC for payments from DISCOs to

IPPs, GENCOs and NTDC. Ultimately, it will function independently under Federal

Govt. and all forthcoming IPPs will be under CPPA.

The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the

following fields:

Generation, Transmission and Distribution of Power.

Irrigation, Water Supply and Drainage.

Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.

Flood Management.

Inland Navigation.

The Authority comprises of a Chairman and three (3) Members working through a

Secretary.

WAPDA is one of the largest employers of human resources in Pakistan. It has 150,000

employees, which make it 2nd largest organization of Pakistan, after Pakistan army. Over

the years WAPDA has built-up a reservoir of Technical know-how and expertise which

has made it a modern and progressive organization.



WATER WING

In 1959, WAPDA was created to undertake the task of investigating, planning

and executing schemes for irrigation, drainage, prevention of water logging and

reclamation of saline land as an autonomous body responsible for integrated

development of water and power resources in Pakistan. The organization was

also entrusted with the work of implementing Indus Basin Settlement Plan

signed between India and Pakistan in 1960 to develop replacement works for

management of river water and irrigation system. Since then it has been

engaged in building water development projects which include extensive

research and investigation to augment country's water resources.

POWER WING

Power Wing is currently headed by

Member (Power) PEPCO.

PAKISTAN ELECTRIC POWER COMPANY



The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted

the task of managing the transition of WAPDA from a bureaucratic structure to a

corporate, commercially viable and productive entity. It is a mammoth task and

progress in the initial months was rather slow, but one should keep in mind that

responsibility is enormous and transition is a long drawn process.

Before going into further details of the restructuring program, it is necessary to

understand the shift in the GoP policy. The GoP, in line with its Strategic Plan of 1992

approved by the cabinet committee, had decided to restructure the entire power

sector in the country

De-regulation of power sector

Promotion of IPPs

Restructuring of WAPDA

Privatization of select corporate entities

The factors responsible for the shift in policies were: generation capacity could not be

increased to meet demand; WAPDA's growth caused inefficiencies, 'demand

suppression' and high tariff policy, proliferated theft. All these factors, over the years,

adversely affected WAPDA's financial condition. As part of this program WAPDA's

functions under its Water Wing and Power Wing were to be segregated. It was

previously envisaged that all power generation, hydel as well as thermal, would be

corporatized. However, later on it was decided that the hydel generation should remain

part of the Water Wing or the remaining WAPDA.

PEPCO has prepared the conceptual framework and is following a comprehensive

strategy whereby WAPDA's vertical-monolithic Power Wing has been restructured into

twelve (12) distinct autonomous entities under Companies Ordinance 1984. These are:

three generation, one transmission and eight distribution corporate entities



The restructuring program of WAPDA's Power Wing is based on the new strategic

policies of the GOP and endorsed and supported by the donor institutions. The aim of

this transition is to install corporate and business culture through: adopting of good

business practices, enhancing productivity and efficiency, including customer

orientation and service culture, improving quality of services setting performance

targets, reducing costs, theft and wastage. This will be based on extensive use of

information technology, management information systems, monitoring and prudent

decision making.

It has been decided that some of the functions currently being performed by WAPDA

will continue to remain with WAPDA/GoP in the largest interest of the country.

These are:

Hydel development

Hydel operation

It was also decided that some of the common facilities, being previously shared by the

two wings and by various departments within the power wing, should be segregated.

These would initially remain with WAPDA unless transferred to any other particular

corporatized entity. These facilities include hospitals, schools, training facilities etc.



ACCOMPLISHMENTSMajor accomplishments to-date is as follows:

Operationalized Pakistan Electric Power Company (PEPCO) as a Private limited

management company owned by Government of Pakistan (GOP) to steer, manage and

oversee the corporatization/commercialization reforms program.

Formed fourteen (14) Corporate Entities as following:

Four (4) Thermal Power Generation Companies (GENCOs)

One (1) National Transmission & Power Dispatch Company (NTDC)

Nine (9) Distribution Companies (DISCOs)

Constituted Board of Directors of the corporate entities with the induction of

Directors from the private sector and PEPCO to utilize their experience for

formulation of effective corporate policies.

Executed Legal agreements such as Business Transfer Agreements (BTA),

Operation and Development Agreement (ODA), Electricity Supply Agreements

(ESA), Bulk Supply Agreements (BSA) and Fuel Supply Agreements (FSA) between

WAPDA and corporate entities for autonomous commercial operation.

Transfer of WAPDA staff to the respective corporate entities (Manpower

Transition Program Phase-I completed). Phase II is scheduled for completion by

June, 2000.

Obtained Federal Tax Exemptions for the corporate entities for Capital Value Tax,

Income tax and Wealth Tax.

Obtained consent of most of the creditors.

Prepared, reviewed, approved and adopted opening Balance Sheets of the

corporate entities as of 30-06-1998.



Privatization schedule for Faisalabad Electric Supply Company (FESCO) finalized

& sent to the Privatization Commission of Pakistan

Investment Plans for Distribution Power System Rehabilitation prepared and

finalized by the Distribution companies

Financial Restructuring of WAPDA approved by GOP

Filed applications by all Power Distribution Companies (DISCOs) for obtaining

License from National Electric Power Regulatory Authority (NEPRA). Public

hearing by NEPRA for processing of applications of Lahore Electric Power Supply

Company (LESCO) and Gujranwala Electric Power Company (GEPCO) completed

Submitted proposal to GOP for Price consideration to be paid or settled by GOP

with WAPDA so that share of the corporate entities owned by WAPDA can be

transferred in the name of GOP.

THERMAL GENERATION



PEPCO's Thermal Power Generation is mainly based on generation of power from its

Steam Turbo-Generators, Gas Turbines (simple as well as Combined Cycle Units)

installed at different Power Stations located in Sindh, Punjab and Baluchistan provinces.

Indigenous Gas & Coal is the main fuel whereas Furnace oil and HSD are also used as

alternative fuel. .



As per Government of Pakistan policy all thermal power generation has been

restructured and four corporatized companies namely Jamshoro Power Generation

Company Limited (GENCO-1) head quarter at Jamshoro district Dadu near Hyderabad

Sindh, Central Power Generation Company Limited (GENCO-2) head quarter at Guddu

district Jacobabad Sindh and Northern Power Generation Company Limited (GENCO-3)

headquarters at Muzaffargarh and Lakhra Power Generation Company Limited (GENCO-

IV) at Khanote (Sindh) have been formed and registered. Functioning of GENCOs has

commenced.

Structural formation of all four GENCOs is as under:

JPCL

(GENCO-1)

CPGCL

(GENCO-2)

NPGCL

(GENCO-3)

LPGCL

(GENCO-4)

TPS Jamshoro TPS Guddu TPS Muzaffargarh FBC Lakhra

GTPS Kotri TPS Quetta NGPS Multan

TPS GUDDU

a. Location

Thermal Power Station Guddu is situated on the right bank of River Indus near Guddu

barrage, 10 Km from Kashmore in district Jacobabad (Sindh). It is about 60 Km away

from Sadiqabad and about 160 Km from Sukkur. It is a confluence of three provinces, i.e.

Sindh, Punjab and Baluchistan.



b. Fuel (Gas & F. Oil) Supplies

The existing daily gas allocation is 285 MMCFD, (from Kandhkot = 115 MMCFD, Sui = 40

MMCFD Mari=90 MMCFD & Tullow= 40 MMCFD). Daily requirement of gas is about 310

MMCFD and in this way there is short fall of about 25 MMCFD. Furnace Oil is also used

to meet-with short fall of Gas quota. Furnace oil is received through Railway Wagons

and Tank Lorries from Karachi.

TPS QUETTA

a. Location

This Power Station is situated at Quetta.

b. Fuel (Gas) Supplies

Natural gas is the main fuel being used for combustion as and when available basis.

Company under the new management (PEPCO) is trying to make an agreement with the

gas company regarding firm gas supply.

TPS MUZAFFARGARH

a. Location

TPS Muzaffargarh is located in the middle of the country between the River Indus and

River Chenab, 2.5 Km to North-West of Muzaffargarh Town in District Muzaffargarh. The

nearest Airport facility is at Multan at a distance of 45 Km North-East of Muzaffargarh.

b. Fuel

Dual fuel combustion provision (Gas & Furnace Oil) has been made for all the machines.

Furnace oil is transported through Railway Wagons and tank Lorries.

NGPS MULTAN

a. Location



Power Station is located at Piranghaib about one Km towards North from Piranghaib

Railway station and at a distance of 10 Km from Multan city towards East.

b. Fuel


15 MMCFD gas is allocated and the short fall is met with by furnace oil firing.

SPS FAISALABAD

a. Location

This Power Station is situated at about 10 Km from Faisalabad city on Faisalabad-

Sheikhupura road. Nishatabad railway station is 04 Km in the West and Rakh branch

canal flows close to the power station in the East.

b. Fuel


Requirement of Gas on 70% load factor is about 22 MMCFD.

GTPS FAISALABAD

a. Location

This Power Station is situated (adjoining SPS) at about 10 Km from Faisalabad city on

Faisalabad-Sheikhupura road. Nishatabad railway station is 04 Km in the West and Rakh

branch canal flows close to the power station in the East.

b. Fuel

Dual fuel combustion provision (Gas & HSD Oil) has been made for all the machines.

GTPS SHAHDARA

a.Location

This Power Station is situated at Shahdara on right bank of river Ravi Lahore.



b. Fuel (Gas) Supplies

Natural gas is the main fuel being used for combustion as and when available basis.

Company under the new management (PEPCO) is trying to make an agreement with the

gas company regarding firm gas supply.

FBC LAKHRA

a. Location

The Lakhra Power Station is located near Manzoor-abad/Khanote in the District of Dadu

(Sindh) on the right bank of mighty Indus River. Hyderabad city is about 46 Km in North-

East and Karachi is about 200 Km South-West of the Power Plant. The Power Station can

be readily approached from North and South by the connecting highways.

b. Fuel

All the three units are based on Coal, which is being recovered by primitive underground

mining method from Lakhra coal mines, 25 Km from Lakhra Power Station.

The detail of three GENCOs showing Power stations, number of units installed, capacity,

make, year of commissioning and fuel used is given below in table-1, 2, 3&4.



GENERATION COMPANIES


To make Pakistan Power Sector customer friendly, efficient, able and responsive in meeting tee electric energy

requirements of industry, business and domestic customers, and move to an energy sufficient model from the current

energy deficient scenario, on commercially viable and sustainable basis, in order to support the high growth

economy and to meet the government's objective of "Power for All".

VISION

To fully enable the reform and restructuring of the Pakistan Power Sector and to transform the fourteen (14) Corporate entities (CE's) into

autonomous and commercially viable enterprises, thru induction of effective corporate management, best business and utility practices, and

well-engineered systems, and bridge the ever growing supply-demand gap, so as to meet customers electric energy requirement on a sustainable and

environmentally friendly basis, thru best utilization of resources, in an efficient, ethical and customer friendly manner, with responsibility to the

community and the Nation.

MISSION


Jamshoro Power Company Limited (JPCL) GENCO I

Central Power Generation Company Limited (CPGCL) GENCO II

Northern Power Generation Company Limited (NPGCL) GENCO III

Lakhra Power Generation Company Limited (LPGCL) GENCO IV

ONE TRANSMISSION COMPANY

National transmission & power dispatch company (NTDC)

EIGHT DISTRIBUTION CORPORATE ENTITIES

1. LAHORE ELECTRIC SUPPLY COMPANY LIMITED (LESCO)

2. GUJRANWALA ELECTRIC POWER COMPANY (GEPCO)

3. FAISALABAD ELECTRIC SUPPLY COMPANY (FESCO)

4. ISLAMABAD ELECTRIC SUPPLY COMPANY (IESCO)

5. MULTAN ELECTRIC POWER COMPANY (MEPCO)

6. PESHAWAR ELECTRIC SUPPLY COMPANY (PESCO)

7. HYDERABAD ELECTRIC SUPPLY COMPANY LIMITED (HESCO)

8. QUETTA ELECTRIC SUPPLY COMPANY (QESCO)

(GENCO-III) NORTHERN POWER GENERATION COMPANY LIMITED

MISSION STATEMENT


http://www.qesco.com.pk/

http://www.hesco.gov.pk/

http://www.pesco.gov.pk/

http://www.mepco.com.pk/

http://www.iesco.com.pk/

http://www.fesco.com.pk/

http://www.gepco.com.pk/

http://www.lesco.gov.pk/


Our mission is to bring the assurance of energy to our customer, with

world class quality and commitment for satisfaction as we in our quest

for excellence

BACKGROUND

Northern Power Generation Company Limited owns and operates thermal power

generation facilities located at Muzaffargarh, Multan and Faisalabad. Installed capacity

of the generating assets is 1,921 MW, which has declined over the years to dependable

capacity of 1,169 MW. Complex pattern of internal and external factors constrain

operating and financial performance of the company. The company has been operating

with a negative bottom line, which has jeopardized sustainability.

Government of Pakistan aims to address the country’s power sector issues by

implementing Power Sector Reform Program. As part of the program the public sector

thermal power generation companies (GENCOs), including NPGCL were required to

develop and implement Business Plans to effectively respond to constraints and

obstacles to satisfactory performance.

INTRODUCTION

This thermal power station is situated in Multan division’s district Muzaffargarh. In 1985

Gulam Ishaq Khan make an agreement with Russia for the establishment of the power



station. Initially this Project was documented for Multan. But due to certain reasons like

availability of land, cost etc. This project shifted to Muzaffargarh by the name of Multan

II. Initially three units were established in Muzaffargarh, called phase 1. These are also

known as Russian units. These units are operated with Oil & Gas. The each unit is of 210

M.W. capacities. China establishes their units to meet the need/demand of electricity.

These units are also 210 M. Watt.

China has also established a unit called unit #4 witches has the capacity of 320 M. watt.

The unit #4 is fully computerized. All its functionality is handled through computerized

programs. About 1500 people are working in this organization including both technical

& non-technical. To make this project Economic District Muzaffargarh was select. Other

Reasons for this location is that there is no thermal house in this Area at that time the

Area like Multan Division and D.G Khan lies at center of Pakistan approximately. The

selection of this location may be due to safety reason in war conditions.

Pakistan Water and Power Development Authority (WAPDA) is an integrated utility in

Pakistan. WAPDA is responsible for the development of Hydel Power and Water

Sector Projects in Pakistan. WAPDA operates through- Power wing and Water wing, it is

engaged in the generation, transmission and distribution of power. In addition, it also

manages irrigation, water supply and drainage system in the country. Further, it is also

responsible for prevention of water logging and reclamation of waterlogged and saline

lands.

The Pakistan Water and Power Development Authority (WAPDA) was established

through an act of parliament in February 1958 for integrated and rapid

development and maintenance of water and power resources of the Country.

This includes controlling soil salinity and water logging to rehabilitate the



affected land in order to strengthen the predominantly agricultural economy

of the country. As per the charter, amended in March 1959 to transfer the

existing electricity departments from the federating units to it, WAPDA has been

assigned the duties of investigation, planning and execution of projects and schemes

for:

Generation, Transmission and distribution of power,

Irrigation, water supply and drainage,

Prevention of water logging and reclamation of saline land,

Flood control and Inland navigation.

Under the later on developments, vis-à-vis the “energy policy 1994”, setting up of

thermal power generation projects was shifted to the private sector. Similarly, as a resul

t of restructuring of the power wing, the utility part was corporatized into independent

companies. This shift from convergence to divergence gave birth to 13 entities to

operate in different zones. These are national transmission and Dispatch Company

(ntdc), four thermal power generation companies (gencos) and eight distribution

companies (discos).

The present status of these companies is of corporate public limited entities

under the Umbrella of EPCO, ultimately to go privatized as planned. The

residual Power Wing is therefore now responsible for major hydro-electric

power projects and schemes in operation.

OBJECTIVES



Pakistan Electric Power Company (PEPCO) unveiled new face of Pakistan's power sector

with the crisis management objectives to improve the efficiency of the power sector and

to meet customers' electric energy requirements on a sustainable and environment

friendly basis. The specific objectives of PEPCO are:

GOALS


Stop load shedding,Revamping of generation units and to improve customer services and

Objectives

Constructing new grid stations,Reducing line losses; minimizing tripping and theft control,

Objectives

Development of an integrated automated power planning system for generation, transmission and distribution to ensure system stability, fault isolation and upgrade relying, metering and tripping system at NTDC as well as Discos level.

Objectives


The following power projects are in pipeline and will be included in GENCO III after their

commissioning.

HIERARCHY OF GENCO III


GOALS

* 425MW combine cycle dual fuel (furnace + HSD) at Nandipur. (3x 95MW gas turbine + 138MW steam unit)* 320MW UAE gifted power plant at GTPS Faisalabad. (5x16MW Fr5 gas turbines + 8x30MW Fr 6 gas turbines)‐* 525MW CCPP at Chichokimalian. (3x117MW gas turbines + 175MW steam turbine* Morale building and to create sense of belonging amongst company employees.)

* Smooth and consistent flow/supply of electricity.* Prompt restoration of disrupt electricity supply.* Accurate and timely meter reading and billing.* Provision of electricity connection in minimum time.* Open door policy to facilitate our customers.* Energy saving message dissemination.* Creating positive image of Genco.

* Special concessions for quick and timely payment of bill.* Availability of stores to deal with emergencies.* Feedback through customer services center.* Create awareness amongst employees for adopting * safety measures while working on lines.* Take steps for welfare of company employees.


OWNERSHIP

The company is wholly owned by the Government. Since the incorporation of the

company in 1998 after unbundling of WAPDA, PEPCO has been managing financial,

human resource and procurement matters of the company. PEPCO is likely to be wound

up by the 3rd quarter of 2011 that may lead to full corporate autonomy of the company

within public sector.

EXTERNAL ENVIRONMENT

Present market composition, size and structure as well as the regulatory regime have

been assessed with an assessment of likely market trends in short and medium term to

map strategic positioning of the company. Pakistan power sector is under severe

demand pressure and is likely to remain so until a foreseeable future.

Thermal power is more expensive as compared to hydro power. Gas is a cheaper fuel for

power generation in Pakistan but gas reserves are depleting and new discoveries are not

on the horizon. Furnace oil is more expensive and exposed to price volatility. Increased

dependence of power sector on furnace oil in the recent years has impacted electricity

price in the country. However, until power mix shifts back in favor of hydro power and

new gas discoveries are made, oil fired plants are expected to remain in full possible

production, constrained only by affordability factors. Any expansion in oil fired capacity

is therefore not likely to be a right direction.

LOCATION:

This thermal power station was established in Muzaffargarh District Multan. Initially

agreement for this project is for Multan. But due to costly land in Multan this Projected

shifted to Muzaffargarh. If this project is establish in Multan. A lot of money spent on

land which increases its fixed cost.



AUTHORITY FUND

The Authority Fund consists of the following:

Loans and grants obtained from the federal and provincial governments

Sale proceeds of WAPDA Bonds

Loans obtained by the Authority with general sanctions of the government

F o r e i g n a i d s a n d l o a n s o b t a i n e d f r o m t h e I B R D , A D B a n d o t h e r

i n t e r n a ti o n a l l o a n giving agencies on such terms and conditions as may be

approved by the government

Sale of power

All other sums received by the Authority



CAPACITY

“Capacity is the maximum rate of output for a facility.” The facility can be a workstation

or an entire organization.

There are two phases working at thermal power station Muzaffargarh.

1: Phase I

2: Phase II

PHASE 1:

In phase 1 there are three units of capacity 210 M. watts. This phase was established

by Russia also called Russia phase.

PHASE 11:

In phase II there are two units of capacity 210 M. watts and one unit of capacity 320 M.

watts.

The phase 1 can produce 15120000 units/24 Hours.

So the total capacity of both the two phases is 48000,000 units/24 Hours. But this is

situation when all the units are working with full capacity. But there are little situation

when this type of occurrence. But they utilize their capacity according to the

requirements. All the decisions about the utilization are done at higher level. NPCC

Islamabad gives all the instructions about the utilization. The reason is that all the

thermal houses in Pakistan are connected just like a ring topology (the term used in

networking). When sufficient amount of water are available the more concentration are

given to produce Hydroelectricity because this source of electricity are much cheaper

than thermal electricity.



Even there are situation, when the thermal house need electricity for their staff colony

and for the power station from other station.

They use no such type of methods like

- Causal Method

- Judgment Method

lant Detail

Muzaffargarh Multan Faisalabad (SPS) Faisalabad (GTPS) Rental Power Plant

3 x 210 MW S.T. + 2 x 200 MW S.T. 1x320 MW S.T.

3 x 65 MW S.T.

2 x 66 MW S.T.8 x 25 MW G.T. + 1 x 44 MW S.T.

150.5 MW G.T + 136.5MW G.T + 210 MW R.E

Plant Type Steam Turbine (S.T. ) & C.C. (Combined Cycle)

Gross Capacity 1921 MW

Fuel Type Natural Gas/ Residual Furnace Oil (RFO)

License No. GL/03/2002



Key Stats as of June 30, 2013

Installed Capacity, MW 1921

Dependable Capacity, MW 1400

Maximum Power Dispatch, MW 1169

Units Generated, Mk Wh 564.705

Units Sent Out, Mk Wh 507.048

Auxiliaries, % 10.21

Load Factor, % 56.60

Plant Factor, % 50.57

FSA, quantity & period 180,000/month for 15 years

GSA, quantity & period Under negotiation

Active Rental Power Plant

• 62MW Gulf Power Plant COD dated 29.04.2013.

• 150MW Techno Empower Sumandri road Faisalabad Partially commissioned on‐

dated: 11.06.2013 at 60MW

• 201MW Reshma Power Plant COD yet not achieved.

• 200MW Yougen Power Plant COD 31.12.2013

• 150 MW Sahuwal Power Plant COD yet not declared.

POLICIES



POWER POLICY 1995

A. GENERAL

The Government of Pakistan in March 1994 announced the Policy Framework and

Package of Incentives for private sector power development in the country. It received a

tremendous response albeit for all Thermal Plants. GOP now intends to encourage

proposals for power generation based on indigenous resources namely its hydel

resources. Hydel power being cheaper, will provide tariff relief to the consumers, utilize

indigenous resources, involve Pakistani entrepreneurs and provide benefits of economic

growth to the relatively backward parts of Pakistan.

B. THE NEED FOR A SEPARATE HYDEL POWER POLICY

In Pakistan nearly all hydro potential results from discharges into the Indus River basin.

Discharges result primarily from precipitation and snow-melt in the northern

mountainous ranges of the country. Discharges take place in small rivulets coming

further down to the bigger tributaries of River Indus and then to Indus River itself. The

development of hydropower projects however, is characterized by remote locations and

seasonal variations. Pakistan's climatic factors including rainfall and snowmelt make it

relatively easy to develop hydel generation during the months of July to December while

the period January to June is extremely dry in terms of stream flow. In order, therefore,

to arrest the risk of over development in summer months that would create an

unbridgeable gap in winter months, the total requirement of hydel plants in private

sector may be limited to 2,000 MW up to the end of the 9th Five Year Plan. However,

the limit of 2,000 MW will be reviewed at a later stage and can be enhanced to suit the

national priorities and power demand growth. Realizing that these peculiarities of

hydropower development necessitate special consideration the Government has

devised an attractive policy package to evoke response of private sector similar to that



of thermal power. The salient features of the policy framework and package of

incentives devised for development of hydropower through private sector.

CORPORATIZATION POLICY

In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was

approved by the GOP/CCI. As a part of the restructuring process, WAPDA's functions

under Water Wing and Power Wing were to be segregated in the following manner:

Unified Power wing of WAPDA comprising of Generation, Transmission and

Distribution to be restructured into fourteen (14) public limited companies

under the corporate law.

Restructure power sector assets to form autonomous commercial entities

through the adoption of prudent business practices, enhanced efficiency levels,

cost reduction and profit orientation

Promote competition to eventually offer affordable electricity to customers.

Through corporatization / commercialization process, promote commercial

viability and enhance business value of the assets block of each corporate entity.

Enhance privatization initiatives



Profile of BOD and Sr. Management

Prof. Abdul Hameed:

Dean, Faculty of Electrical Engg. University of Engineering and Technology Lahore,

Director, BOD, TEVTA (2002 04) Chairman, Bismillah Education Trust Regional Director,‐

National Institute of Power (1992 98) Council Member, IEE (UK) Council Member, IEEE‐

(Pak)

Mr. Abdul Rasheed Mir:

14 years as CEO/Director Gray’s Leasing Ltd. 13 years as Chairman/Director Friend‐

swear (Pvt) Ltd.

Khawaja Muhammad Younis

30 Years as Director, Mahmood Group of Industries, Member Executive Committee

(FPCCI), Member Central Executive Committee (APTMA), Director Punjab Social Security

Health Management Company, President, D.G.Khan & Bahawalpur Chamber of

Commerce & Industry

Mr. Muhammad Rafiq Butt:

35 Years as power plant engineer, presently working as GM (D&D)

Mr. Muhammad Naeem Akhtar:

33½ Years as power plant engineer, presently working as CE (MMS)

Mr. Ghulam Mustafa Tunio:

34 years as power plant engineer, presently working as CEO (GENCO III)‐



DEPARTMENTS


MATERIAL MANAGEMENT

HUMAN RESOURCE

MANAGEMENT

MANAGEMENT INFORMATION

SYSTEM

FINANCE/ COORDINATION

WING

BUSINESS STRATEGY

UNIT

MARKETING DEPARTMENT

MONITORING AND

SURVEILLANCEDISTRIBUTION CUSTOMER

SERVICESTRAINING

CENTERCOMPLAINT CENTER


MATERIAL MANAGEMENT

“Material management is concerned about short range decisions about suppliers,

inventories, productions level, staffing patterns, schedules and distribution”. Decisions

are these areas that affect the whole organization directly or indirectly.

Material management is important because whole of the organization depends upon

the material, so it is very important.

FUNCTIONS OF MATERIAL MANAGEMENT:

The functions generally performed in material management are purchase there are

generally two type of purchase.

. Foreign purchase

. Local purchase

FOREGIN PURCHASE

The organization foreign purchase process is centralized. They give tender to that

foreign who promise to full fill their demand within the time. Generally G.M order for

foreign purchase. In thermal organization there are specific companies who can full fill

their demands. They get there required material from the parent company who have

established the units. Reason is that they know the requirement better than any other.

Foreign purchases are generally for 3-5 years. The foreign in entry are.

LOCAL BUYING:

Organization also makes local purchase according to the requirement. For local

purchase they use causal method. For local purchase first of all they purchase

informally, if the order is small.



For big order they advertise in newspaper and call tender. For local buying they give

order to they give order to successful tender holder and take 10% security from that

company.

For example, they select company for chemical purchases. They inform that company

that they may need this much quantity of chemical during the whole year. They inform

one week before the need of that chemical during the year. The local purchases are for

one year.

VENDORS:

Vendors are generally those suppliers that are I so good certified. Mostly the foreign

purchases are done from certified companies but they may purchase which are not ISO

certified. The reason is that they make foreign purchase from parent company of the

plant establisher.

STORE MANAGEMENT:

Any purchase local or foreign is first of all checked before sending to store. In case of

local purchase they do not so much checking. But in foreign purchase they check the

inventory before sending to store through the related department experts. These

experts check the inventory and recommend the inventory. It they reject the material

then it is send back.

All the purchases are entered first by store department. It any department need

anything, they first of all contact with store department. Every section has its own stock

book entry of incoming inventory are done on five page.

- Two pages for evaluation section.

- Three pages for measurement section.



INVENTORY MANAGEMENT

“Inventory is stock of anything held to meet the future demands of organization”.

Inventories are very sensitive part of any organization. Inventory of local purchase are

for one year and for foreign purchase it is 3 years to 5years.

ASSESSMENT OF INVERTORY:

For the assessment they are using the different method.

FOR OIL:

Assessments of oil requirement are usually depending upon the usage of oil when the

power houses are working at full capacity. Then they need oil very much.

Generally the unit can operate with oil & Gas as well. When the gas is available then in

those days their demand for oil is less. The reason is that electricity through gas is

cheaper than through oil.

STORAGE OF OIL:

There are at least ten oil tanks for the storage of oil. These tanks are use full for one

week when the production of electricity are at peak the consumption of oil is 3200-3500

metric ton for 12 Hours on full load.

STORAGE FOR PARTS OF MACHINORY:

Parts of machinery are purchase through foreign contracts. It is generally for 3-5 years.

The cost on such type of inventory is high and ordering cost transportation cost is also

high. All the power houses in Pakistan keep the information about such type of

inventory. It they need such type of parts I emergency they contact with other thermal

houses.



Storage for Chemical:

Chemical in the case of local purchase are stored for one year’s only. But the chemical

which are original purchased are stored for 3-5 years chemical is used for the treatment

of the water. This treated water is used for making steam to run turbine.

Reorder Point for inventory

“The fixed amount of quantity that remains with the stock to meet uncertain need”

REORDER POINT FOR OIL

Main inventory of thermal Houses is oil. The thermal house can be operated by oil and

by gas as well. The organization tries to operate with gas because of its low cost. When

the shortage of gas occurs then the more consecration is given to generation through

oil. The four Tanks out of ten are kept to meet the uncertainty of supply. The total

storage of capacity of oil is 16,000 MT to 22,000 MT

Reorder point for oil are measured through the information obtain from ‘E form’ used

by ITR (Operation) section. In E-Form the unit operators put information about the use

of oil.

According to that information re order point for oil is measured. The Organization also

used Causal Method to measure the reorder point of oil.

REORDER POINTS FOR PARTS OF UNITS

The other inventory are parts of machinery, these parts are usually imported so thy

are ordered in so much quantity to meet need of next 3 to 5 years in thermal house

there is another method check the reorder point for parts of machinery. Usually all

thermal houses provided information to each other about the parts available in the

store. If any thermal house need any part in emergency and that part are not available

in there store then they can contact to another thermal house to meet the need.

HUMAN RESOURCE MANAGEMENT



Human Resource Management function is rudimentary and needs to bring in modern

HRM practices. HR managers need to be trained to lead technical work on corporate

reorganization and support inclusive process to develop and agree with stakeholders on

HRM related initiatives.

RECRUITMENT AND SELECTION POLICY



Give ad of vacant seats in the newspaper like Dawn, Jang, and Express etc.

Some seats are reserved on Quota like Baluchistan, Sindh and FATA.

75% seats are reserved for District Muzaffargarh on scales below 14 BPS.

Retired and during service death servants have applied child quota about 5% in

vacant seats.

Higher grades jobs above 14 BPS are open for all Pakistan but give District

Muzaffargarh residence n or near.

SELECTION PROCEDURE

Take written test s consists of MCQs and some subjective questions of related

fields like junior engineer etc.

Finally Successful candidate have taken interview by Panel.

Panel seated by CEO and members who selected by CEO.

ORIENTATION AND TRAINING

Below 16 BPS training center is in Faisalabad (GAS TURBINE POWER STATION

FAISALABAD) and duration is 3 months.

During this training give basic pay without allowances and hostel and mess is

totally free.

Above 17 BPS candidate training center is in Islamabad ( WAPDA Academy

Islamabad)

During Training give brief orientation of GENCO-III and give basic pay and fee

accommodation and mess.

SERVICE AND PAY ROLL SYSTEM



Servant starts his services maintain service book for each candidate who joined

company. Basic pay is according to federal government pay but allowances are

50% of Pay and 25% Muzaffargarh allowance.

Pay increase with Federal Government policies a fix increment according to pay

scale.

Annual Record is written by clerk and signed and verified by Residential Engineer

(R.E.)

After 2 years departmental exams will be taken and sent to training to training

stations.

DUTY TIMING AND FACILITIES

Two type of duty schedule is running in GENCO-III

(a) General (8-2pm)

(b) Shift (8 hour)

All facilities are given to employees like

Free medical (whole family)

Transportation to other city

House

Electricity

APPRAISAL AND PROMOTION

There are no such appraisal system present in the organization

Seniority is major parameter.

There is no such standard s set for appraisal in the government organization.

Promotion based on seat availability on different Thermals seats.

Below and equal 17 grade post filled with in GENCO but above grade seats are

filled on overall seniority based in four GENCO.

SUCCESSION POLICY



Top seats are filled by board which established by Chairman WAPADA under

supervision of Sectary WAPDA.

The board consists of three members who selected by Chairman WAPDA

Member of Power

Member of Finance

Member of Water.

PROFILE OF BOD AND SR. MANAGEMENT

MANAGEMENT INFORMATION SYSTEM



The company operates with paper-based information and reporting systems, which has

become a cause of sub-optimal results by affecting quality and timeliness of information

leading to slow or lack of timely action.

FINANCE/ COORDINATION WING



M e m b e r ( F i n a n c e ) i s r e s p o n s i b l e f o r t h e f u n c ti o n i n g o f t h e

d e p a r t m e n t s o f F i n a n c e , Internal Audit and Budget and Accounts headed by

Chief Auditor (Internal Audit) and

Director G e n e r a l F i n a n c e ( B & C ) . H e a l s o e x e r c i s e s a d m i n i s t r a ti v e

c o n t r o l o v e r G e n e r a l M a n a g e r (Central Contracts Cell), Director General

(Taxes) and Director Public Relations. Managing D i r e c t o r ( A d m i n ) i s

v e s t e d w i t h t h e r e s p o n s i b i l i t y f o r o v e r a l l a d m i n i s t r a ti o n a n d

s e r v i c e s . Secretary WAPDA in addition to looking after day-to-day affairs of

the Secretariat, prepares minutes of the Authority’s meetings, maintains records of

its decisions and issues its directives and coordinates among the three Wings

besides monitoring and implementation of Authority’s decisions.

G e n e r a l F i n a n c e ( B & C ) . H e a l s o e x e r c i s e s a d m i n i s t r a ti v e c o n t r o l

o v e r G e n e r a l M a n a g e r (Central Contracts Cell), Director General (Taxes)

and Director Public Relations. Managing D i r e c t o r ( A d m i n ) i s v e s t e d w i t h

t h e r e s p o n s i b i l i t y f o r o v e r a l l a d m i n i s t r a ti o n a n d s e r v i c e s . Secretary

WAPDA in addition to looking after day-to-day affairs of the Secretariat,

prepares minutes of the Authority’s meetings, maintains records of its decisions and

issues its directives and coordinates among the three Wings besides monitoring

and implementation of Authority’s decisions.

Financial Management function needs to be strengthened in a relatively short time,

necessitated by performance pressure but made possible because of the window of

opportunity after exit of PEPCO.



It has five sections

B.T.B & C.P.C Section

BANKING Section

THERMAL POWER ACCOUNT Section

ADMIN &TAXES Section

General Accounting

BANKING SECTION

Assistant Manager Accounts; Zahaid Nawaz Dasti



Account Assistants ; Mr. Imtiaz

Account Assistants ; Mr. Hoshyar

Account Assistants ; Mr. Ammar

Main Functions:

General Account, Imprest & Pension Account, Letter Of Credit (LC)

TPS Muzaffargarh Unit-wise Detail

Unit Name Type COD/Age Installed

Capacity

Dependable

Capacity

Fuel FSA

Unit No.1 Steam

Turbine

09.09.1993 210 185 RFO/Gas F.O.

Unit No.2 Steam

Turbine

23.03.1994 210 200 RFO/Gas F.O.

Unit No.3 Steam

Turbine

20.02.1995 210 160 RFO/Gas F.O.

Unit No.4 Steam

Turbine

23.12.1997 320 245 RFO/Gas F.O.

Unit No.5 Steam

Turbine

14.02.1995 200 110 RFO/Gas F.O.

Unit No.6 Steam

Turbine

14.08.1995 200 100 RFO/Gas F.O.

BUSINESS STRATEGY UNIT



A Business Strategy Unit is proposed to be set up to take up the task of implementation

and later lead corporate strategy function. CEO and functional heads will organize

themselves to work as a committee to create and lead the Business Strategy Unit. The

unit shall be staffed with one middle management level officer from each of the

functions. The Business Strategy Committee shall meet at least once in a fortnight to

make decisions and oversee progress on implementation.

A virtual project management unit with support of USAID/Energy Support Program shall

be set up to support implementation activities by organizing short term technical

assistance. Exit of the short term outfit will be gradual and least problematic as it will be

created only in a virtual sense by allocating part time role of short term experts. This

arrangement is likely to create strong motivations for the company’s Business Strategy

Unit to acquire skills by working closely with short term experts and expeditiously take

over lead role in implementation.

Internal leadership of the company shall take the center-stage role for coordination of

implementation activities. They shall themselves receive orientation and technical

advice to lead a process of positive change that implementation activities aim to initiate

and sustain.

Organization and processes provide management hardware for people to transform

inputs into outputs. Outcomes emerge from appropriate inputs put through a right

institutional and organizational apparatus. Management improvements are a main

thrust area of the Strategic Plan. The focus is on creating a vibrant organization that can

handle challenges of business performance and results and become fully capable to

solve their problems and target and achieve any results that their strategic decisions

target.



Change management & communication strategies

Implementation of business transformation activities critically depends on acceptance

and support of stakeholders. Involvement of stakeholders leads to ownership, minimizes

resistance to change and creates positive attitudes toward change. Leadership

competencies are vital to process of cultural change in corporate transformations.

Leaders at all levels of management influence behaviors and hence need to be enlisted

as “agents of change”.

Communication strategies are used to ensure stakeholders’ involvement, ownership and

enthusiasm. Top leadership needs to take up central role in communication strategies to

promote a sense of association in the people and enlist support of their team members.

Vision, Mission and Shared Values must be evolved to guide decisions, actions and

attitudes. An organization-wide inclusive process needs to be designed and

implemented to support the people to articulate their vision and mission statements

and a set of shared values.

MARKETING DEPARTMENT



Generation, transmission and distribution are supply side segments of the power

market. For thermal power companies, oil and gas markets are critically important.

Under present market regime, apart from bulk consumers, CPPA within the only

transmission company, NTDC, acts as the single buyer in the market.

There has been a perpetual shortage in production and supply of electric power which

complicates computation of total demand (or un-served needs backed by capacity to

pay). NPGCL plants accounted for 6.48% of national installed capacity and 9.6% of total

thermal installed capacity as on June 2010. NPGCL production accounted for 7.23% of

national production and 10.58% of total thermal production in the country for the fiscal

year 2009-2010.Levels of demand and supply of electric power experienced in last 4

years and anticipated by NTDC during next 5 years are as in following table:

MARKET STRUCTURE AND MECHANISMS



Power market in Pakistan is composed of generation companies in public and private

sectors, a state owned transmission company– NTDC and nine distribution companies.

KESC as a privatized integrated utility is responsible for generation, transmission and

distribution in its territory viz. Karachi. Power generation sub-sector consists of WAPDA

Hydro; state owned thermal generation companies (GENCOs) and private sector

producers- IPPs. CPPA, which is under NTDC, is the single-buyer for GENCOs and IPPs in

the market currently. NTDC purchases electric power from the power producers and

sells it to the distribution companies.

Gas and FO being the main fuels for thermal power generation, the two gas companies

and OMCs form an important part of the power market. Fuel consumption is the linking

point between power and other energy markets and is an important driver of the power

market in Pakistan. Institutional mechanisms and legal instruments to provide strong

market discipline are likely to emerge from increased reliance on contractual

mechanisms within a legal framework at the next step of market evolution. PEPCO

dissolution is likely to necessitate reliance of public sector companies on contractual

mechanisms such as PPA, GSA and FSA to cover credit and counter party performance

risks.

MARKET & TARIFF REGULATION

NEPRA is the power sector regulator in the country. Efficient power market, investor

and consumer protection, performance standards and pricing are important parts of the

regulator’s mandate. Generation license and tariff determinations of new entrants to

the market give NEPRA “gate-keeper’s” control over the future cost and capacity trends

in the market. NEPRA controls market entry and exit through licensing; prescribes and

enforces performance standards; determines tariff rates and provides advisory to

government on power sector.



Tariff model for generation stage pricing is based on cost plus fixed return on equity, in

principle. In practice, NEPRA determines reference tariff on the basis of fixed one time

thermal efficiency at average load.

Fuel costs are billed as part of Energy Purchase Price (EPP), which is adjusted for fuel

price variation but no gain or loss due to subsequent variation in thermal efficiencies is

included. The other component is variable O&M expense, which is adjusted with

inflation index but was originally based on 3-year average cost.

All other costs are meant to be recovered through Capacity Purchase Price (CPP).

Adjustments subsequent to original determination are periodically made on the basis of

inflation index. Financial costs and taxation are pass-through items, which are in effect

reimbursed in exact amount as part of CPP.

MONITORING AND SURVEILLANCE (M&S)



It is the most important department of (Genco-III) Northern Power Generation Company

.Limited. Information technology deals all the enquiries of employees. Monitoring and

surveillance department works under the section of chief executive officers. So all

complains first come in the chief executive officers office then it come to the monitoring

and surveillance department.

In the organization structure one manager of Monitoring and surveillance which has

three deputy managers. It divide different circle of Genco-III) Northern Power

Generation Company Limited among the deputy managers. Monitoring and surveillance

take full document about the complained after full enquiry also listed views of people

who directly or indirectly involved in the case. It give recommendation of all kinds of

complain. Monitoring and surveillance taken recommendation according to the nature

of complains.

All the complains come from chief executive officers office and after its

recommendation it depend on chief executive officers either he accept or reject its

recommendation. In Monitoring and surveillance the first manager review complains

then it given to deputy according to their respective circles and division.

It takes all the data in three days and after listening views of people which involved in

the case gives decision. It deals all the cases which come from chief executive officers

office or FBI given to him for review.


CHIEF EXECUTIVE OFFICERS

MANAGER

DEPUTY MANAGER

DEPUTY MANAGER

DEPUTY MANAGER


DISTRIBUTION DEPARTMENT

All power houses in Punjab are interconnected through lines with each other

in Pakistan two types of electricity can be produced

hydral electricity

thermal electricity

When there is shortage of water then more concentration are given to thermal

electricity. After producing the electricity through units then they are distributed

through mail lines. All mail lines are looked after by NTDC (National Transmission and

Distribution Company, Firstly named as GSO (Grid station operation). Their main

function is maintaining the main lines from thermal house to General consummation.

The thermal power station Muzaffargarh generally provide electricity to these main lines

KAPCO

New Multan -I

New Multan -II

New Multan -III

New Multan –IV

They provide two lines of 220 Kv to “LALPEER” two lines to “PARCO”

All power Generation Companies are divided into three main Categories

Genco I

Genco II

Genco III

Genco I

In Genco I thermal houses are Jamshoro & Lakhra



Genco II

In Genco II thermal house are Guddu

Genco III

In Genco II thermal house are Multan (MEPCO), Fasil Abad (FASCO), Muzaffargarh.

When the electricity produced through units first of all there is PAKGEN 220kv Switch

yard. This switch yard is used to step up the electricity and then send to the grids of the

cities. There is lot of loss of electricity through 220kv switch yard.

To avoid this problem WAPDA established in March 2000 with the help of APP

Company, 500 Kv switch yard to avoid these line losses. Approximately 30% of electricity

is lost in main lines. The purpose of 500kv switch yard is to minimize these losses.

CUSTOMER SERVICES DEPARTMENT



Contact concerned distribution company for customer services. Respective distribution

companies under PEPCO are responsible to deal with all matters of their electricity consumers

as per their procedures. Please explore the website of your distribution companies for further

details. The links of distribution companies (DISCOs) are given below for facilitation.

1. LAHORE ELECTRIC SUPPLY COMPANY LIMITED

2. GUJRANWALA ELECTRIC POWER COMPANY

3. FAISALABAD ELECTRIC SUPPLY COMPANY

4. ISLAMABAD ELECTRIC SUPPLY COMPANY

5. MULTAN ELECTRIC POWER COMPANY

6. PESHAWAR ELECTRIC SUPPLY COMPANY

7. HYDERABAD ELECTRIC SUPPLY COMPANY LIMITED

8. QUETTA ELECTRIC SUPPLY COMPANY

TRAINING CENTER

General Manager (Training) office is functioning at WAPDA House, Lahore and controls various

training centers detailed below: -

a. WAPDA Staff College, Islamabad.

b. WAPDA Engineering Academy (Water & Power), Faisalabad

c. Thermal Generation Training Center, Guddu

d. Hydel Training Center, Mangla

e. Technical Services Group, Lahore

f. 8 Regional Training Centers (RTCs), one at each DISCO

Address:

734 WAPDA House, Lahore Phone:(042)-9202003 Fax: (042)-9202608



COMPLAIN CENTER

POWER THEFT

Steeling of Power is crime against every Pakistani and who ever does it, is our enemy.

Please help PEPCO in its effort to stop power theft by reporting at its toll free

number 0800-84338. This is a free number for all calls including NTC, PTCL, Mobiles or

wireless phones.

Instructions for theft reporting:

Call the Toll free number 0800-

84338

Listen the instructions carefully

After pressing 1,

Record your message about event

of theft (Please give maximum detail

of location)

After completing the message

disconnect the call



FINANCIAL

ANALYSIS















DEBT/EQUITY RATIO

Debt to equity ratio shows the extent to which debt financing is used relative to debt to

Equity ratio= total debt/ shareholders equity.

Debt equity ratio of 2011 82762177725/8517568031= 9.717

Debt equity ratio of 2012 83343604779/4750202521 = 17.545

2011 20120

2

4

6

8

10

12

Equity ratio

Equity ratio

Equity ratio of 2011 is higher than 2012



ACID TEST RATIO

It is the ratio of liquid assets to current liabilities

Quick ratio = current asset-inventories/current liabilities

For 2011 35992974684/49173251637=0.732

For 2012 34983724572/56482697788=0.619

2011 20120.56

0.58

0.6

0.62

0.64

0.66

0.68

0.7

0.72

0.74

0.76

Acid test ratio

Acid test ratio

2011s is the better after the 2012



EARNINGS PER SHARE

This ratio determines the amount of income that has been earned on each share

outstanding.

Earnings per share = net profit after tax/total no of shares

For 2011 0/50000=0

For 2012 0/50000=0

Earnings per share is not satisfied because Genco III gone into loss

NET PROFIT MARGIN

It is the ratio of net profit (after taxes) to net sales. It is expressed as percentage.

Net profit margin = N.P.A.T/total income*100

For 2011 0/85286568=0

For 2012 0/720414698=0

Genco III net profit margin nil so it’s very bad sign.



DIVIDEND PER SHARE

Dividend per share = total dividend/no. of share

For 2011 2635748766/50000=52714.97

For 2012 0/50000=0

2011 20120

10000

20000

30000

40000

50000

60000

dividend per share

dividend per share

Analysis

In 2011 the dividend per share is high. In 2012 it reaches at zero.



CURRENT RATIO

Current ratio = current asset / current liabilities

For 2011 35992974684/49173251637=0.732

For 2012 34983724572/56482697788=0.619

2011 20120

0.5

1

1.5

2

2.5

3

Current ratio

Current ratio

Current ratio value is less than 1 means that the firm is unable to pay its current

liabilities completely by it current assets. It is because the difference between assets and

liabilities decreased.



FIXED ASSET TURN OVER

This ratio measures the efficiency and profit earning capacity of the concern.

Fixed asset turnover ratio = sales/ net fixed asset

For 2011 66213840693/46369044856=1.428

For 2012 75796292095/47955717886=1.580

2011 20120

0.5

1

1.5

2

2.5

3

fixed asset turnover ratio

fixed asset turnover ratio

The higher the ratio the better because a high ratio indicate the business has less money

invested in fixed asset for each rupee of sales revenue. In 2012 fixed asset turnover ratio

is high as compare to other. This is better sign.



RETURN ON ASSET RATIO

Return on asset ratio = net income/ average total assets

For 2011 =0

For 2012 =0

Both the year company bears loss because there is no profit in both years.

RETURN ON EQUITY RATIO

Return on equity = Net profit/Equity

For 2011 = 0

For 2012 =0

This ratio shows what company earns at each rupee of investment but the company

bears loss.



DEBT RATIO

Debt ratio = Total liabilities/total assets

For 2011 74244609694/82762177725 = 0.897

For 2012 78593402258/83343604779 = 0.943

2011 20120.87

0.88

0.89

0.9

0.91

0.92

0.93

0.94

0.95

Debt ratio

Debt ratio

In 2011 company finance is based on 89% of liabilities and 11% of assets. In 2012

company finance based on 94% on liabilities an only 6% of assets. In debt ratio high the

ratios then leverage and financial indebtedness will be high.



EQUITY TO ASSET RATIO

Equity to asset ratio = Total equity/total asset

For 2011 8517568031/82762177725 = 0.103

For 2012 4750202521/83343604779 = 0.057

2011 20120

0.02

0.04

0.06

0.08

0.1

0.12

Equity to asset ratio

Equity to asset ratio

Equity to asset ratio of 2011 is higher than 2012.



SWOT ANALYSES



STRENGTHS

The largest Generation Company in Public Sector.

Provision of Dual Fuel Firing

Power Plants are located in the load centers.

Availability of land for capital expansion.

Road and Rail facilities for furnace oil supply.

Highly qualified skilled labor available.

Established infrastructure.

Experienced & dedicated engineers available.

Correction of the bills

Co-location of XEN & RO offices

Good relation with different departments

Restructure of stores to ensure prompt availability

Printing a last 12 month history on bill

Provide full facility to customer for paying bill

Central chief executive customer service center

Provide a computerized service center to each circle

Mobile customer service facility

Establish a marketing cell

Provide high technology for development and maintenance

WEAKNESSES



Heat rate is high as compared with the design value due to deterioration of the

plant.

Lack of capital investment.

Drain out of skilled manpower to IPPs/abroad and Rental Power Plants due to

low salaries as compared to private sectors.

Ineffective preventive maintenance due to non-availability of spare parts and

delay approvals of shutdown of the units.

Ineffective performance appraisal system.

Delayed decision making.

Ineffective material management system.

Non availability of GAS.

They take so much time for processing any project.

Lack of communication level between employees.

Most of department based on manual system.

Lack of loyalty in front of customer.

Administrative cost of the company is very high due to which the profitability of

the company decreases.

There is still improvement of technology in the genco computers.

There is no objective / target for employees

Performance of service center is not too great for satisfaction to customer

People has less trust over company

Dealing to customer not too much efficient

OPPORTUNITIES



Use of land for expansion.

Vicinity of Furnace Oil Refinery.

Modification / Rehabilitation of Plant in process.

Expansion in installed capacity.

Goals of corporation and commercialization plan at one time.

Provide a facility of mobile customer services center at each circle.

For reduction in energy loses used the distribution system rehabilitation under

system augmentation program (SAP).

It should be on time development works an LT/HT proposals under SAP.

Establish a new grid station.

Extension of existing grid station.

Transmission lines.

Conversion of our all transportation to CNG.

Provide a facility of new vehicles for field and operation sector employees.

No competitor in local market so it can increase shares

Services easily in market

THREATS

Influence of Oil Mafia.



Lack of Fuel/Gas Supply.

Security lapses.

Dishonesty of officials.

Low government budget.

Not a good support for supplier.

Heavy taxes by government.

Daily differ fluctuation of supply is the permanent treat.

Day by day technology change.

Overall performance is decreasing.

Some government project spoilage the GENCO image.

Politic in employees

Labor unions are very awful for company.

In future market value will be decreases.

Political environment are decreasing the efficiency of the company.

RECOMMENDATIONS The trust of the customer must be retained.



The employees must be well trained for customer services issues.

Attendance system of the employees must be changed.

Give full safety to the employees.

Communication gap between upper level and lower level employees must be

improved.

The procedure of new connection meter must be reduced staff.

The organization hierarchy must be reduced in the organization.

Give more concentration for the low level employees.

Must give the safety precaution to the employees.

Take some steps for create understanding between different departments.

To increase their productivity.

The top management should give authority to the managers to take decision

according to the situation at any time and in the absence of top management.

Appoint skillful and talented people to increase the productivity and utility of

company.

Arrange different seminars and conferences for employees.

All the duties and responsibilities of each employee should be clear.

Try to more use of latest technology in offices.

There should be decentralization of decision making.

Management should be recruit right person for right job.

Behavior with customer should be improved.

Make better plan for stop the line loses.

Offer new training course to the employees.

The management should have multi skilled so achieve at economy of scale.



Pay procedure should be clear and at a time.

Provide friendly working environment.

Make some specific plans for internees.

Reduce work load to the employees.

Regular reconciliation is made to keep the records streamline.

Manual accounts are replaced with latest accounting software.

Wapda employees may be encouraged for accepting challenging jobs by the

Authority.

Efficient and motivated employees should be rewarded



CONCLUSION

I chose the (Genco-III) Northern Power Generation Company Limited for my internship

training, which is necessary for my 31/2 year MBA degree. I worked in head office of (Genco-III)

Northern Power Generation Company Limited for six weeks in different departments including

HR, Project management, and marketing and especially in finance department. During my

internship I worked in these departments under the supervisions of concerned different

managers. The staff at (Genco-III) Northern Power Generation Company Limited is very

corporative and supportive. I try to give best and careful analyzed all the department of the

company. I take information of these departments. Although the six weeks training duration is

very short period for study of an organization but I learned a lot due to the help of the

managers. I worked in different departments of the company during my internship training. The

working hours for duty are 8am to 4pm with tow holidays in a week.

I started my training from HR and admin department during first week of my training under the

supervision of HR admin manager. Director HR of heads this department. During my internship

in this department I leaned bout different function of HR. I also learned about all the

activities regarding selection, recruitment, etc….. I passed some days in admin section

which is necessary for management to know about training and development, needs for

the stationary, measurement for now the performance,. I also learned about inquiry

process because it functions of legal department which control or under the HR

department. HR department is also responsible for the analysis of the performance of

employees. The HR department deals with recruitment, job placement, test and



interview of new employees. HR department also performs training, promotion and

retirement. I also learned about the HR policies of the companies that are concerned

with the problems of providing and handling or create the motivational environment

that is required for the business.

Next week I join administration department. Administration department consist on

administration managers, deputy manager administration, assistant manager, HR

executive and clerical staff. I worked under the manager. During my training in this

department I learned that how the appointment record, employee record is maintained.

How the performance of the employee is measured. This department also deals with

issuance of show cause notice, charge sheet and termination. Staff of this department is

very cooperative. This section is also prepares the promotion cases of the employees

and also maintain the leaves records, increment record, security issues and

maintenance of vehicles. The director HR and admin advise management concerning

various relations and represent management in the handling the complaints of

employees. I also learned that how billing of overtime, TA/DA, contract bankers record

of workers for annual increments prepare also preparation of government returns. This

department also controls the wages system and HRIS. The duties of assistant manager

administration are recommendation, telephone, transport, security, audit,

procurement, compensation/ benefits and labor management. After completing my two

weeks in HR and admin department I attached with marketing cell. Due to monopoly in

market there is no such marketing in Genco. It deals with the customers who went new

connection of electricity. The entire tariffs are made in marketing cell. This is also so

cooperative unit.

Marketing cell consist of one manager and two assistant managers. I worked with the

assistant manager. She helps me very well in explaining tariff. Marketing cell also has

frontline which deals with the customer. I also worked two days with frontline

employees.



After marketing cell I do one week internship in customer and service directorate. The

director of customer and service is the head of this department. This is so much busy

department it totally concern with the customers. Customer and service department do

work under the chief executive office. Customer service department has frontline which

deal directly customer and note down their problems. It all deal with billing system.

Basically customer come for correction in bill, exceed of units, amendments, etc. this is

only for the favor of customers. It plans all the policies for the welfare of customers.

Genco provide different benefit like segregation, amendment, installation, and increase

in date of bill.

Main work I perform is in finance department. PMU finance is totally based on finance

department. All the employees take from main finance department. It only makes for

the calculation of all the funding of ADB or World Bank. Procurement deals with the bid

of tender. Inspection of the project creates a safety environment for workers. The main

achievement for me in finance department is to complete a project that deputy

manager assign to me as a task. This is CFI distribution monitoring and tracking. I deputy

manager give this project as my assignment learned so much in this project. It is the

national level project. I make a plan for its distribution and monitoring.

After this I attach with the monitoring and surveillance department. It’s under the

section of CEO. It’s basically enquiry section. IT is enquiry the employees of Genco. The

M&S note all the complaints against their employees. It hearing both the parties and

give suggestion to CEO which reject and accept the decision.it collect all the date and

then recommend it on decision.

At last I put SWOT analysis of Genco Company that I realized there and put

recommendation that will be beneficially for company.



Annexure 87 | Internship Report The Islamia University Of Bahawalpur



Economy & Finance

Internship report of genco 3 Wapda Muzafar garh