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A REPORT ON

FORECASTING OF HYDROELECTRIC PROJECTS BY NHPC PREPARING A BID ON KAMENG HYDROELECTRIC PROJECT BY ALSTOM

PRESENTED BY:
SANTANU BANERJEE PGDBM ROLL NO. 10/209 BATCH- 2002-2004

CERTIFICATE
This is to certify that Mr. Santanu Banerjee, a Post Graguate Diploma in Business Management student of Apeejay School of Marketing, D arka, !e our organisation from $%th May&'(() to )(th *une&'((). During his training he assignments gi,en to him. -e ish him all the success in his near future. as found to +e sincere # dedicated to ards his Delhi, has successfully completed his summer training in "ydro Sales # Marketing area in

......... Mr. Manjeet Singh ......... H.R M!"!#$%& M%. R!'( K. A%)%! /Sales # Marketing Manager0

DECLARATION

I* SANTANU BANERJEE* ! +,-.$", )/ APEEJEAY S1"223 24 MA567T8!G, D-A56A, here+y declare that this project is my original ork # all the data in this report is true to the +est of my kno ledge.

SANTANU BANERJEE

ACKNO0LEDGEMENT
8 ackno ledge ith thanks the continued co9operation recei,ed from ithout hose sincere # fruitful

Mr. 5a,i 6. Arora during my training period of one # a half months ho acted as a guide for my project, ad,ice this report could not ha,e +een prepared. 8 am also thankful to the staff mem+er of A3ST2M # !"P1&s senior officers ho ha,e contri+uted ,alua+le datas in preparing this report. 4atherly guidance # ray of future hope torched +y Mr. G.D.Singh / Professor of Marketing 0 preparation of this project report. ill remain memora+le dream for

PREFACE
7:perience counts much more than theory, that is hy the companies

are pro,iding management training to upcoming professionals. This training helps them to o,ercome the pro+lems that they face in future. 8f e speak in the conte:t of marketing, e find that this training

pro,ides the trainees the upto date kno ledge of the consumer&s taste, preference # the current trend pre,ailing in the market. 8 as fortunate enough to ork as a summer trainee for a period of one # a half months. The training as interesting, satisfying # inspiring.

CONTENTS

1.0 PO0ER INDUSTRY 11111111111111.1 2.0 MINISTRY OF PO0ER 111111111111..12 2.0 CENTRAL AUTHORITY OF INDIA 1111111.23 4.0 HISTORICAL PERSPECTI4E 5 CURRENT SRTUCTURE OF THE COMPANY 11140 6.0 SUMMER TRAINING REPORT 6.1 FORECASTING OF HYDROELECTRIC 11137 PROJECTS BY NHPC 6.2 BID OF KAMENG HYDROELECTRIC PROJECT 1111111111111111197 8.0 ANNE9URE : I 1111111111111111..146 APEEJAY INFORMATION SUPPORT SYSTEM 7.0 ANNE9URE : II 1111111111111111.196 A REPORT ON INDUSTRIAL 4ISIT 3.0 BIBLIOGRAPHY 1111111111111111198

FEEDBACK REORT

E9ECUTI4E SUMMERY
This report ha,e +een di,ided into nine parts hich is mentioned in the content. 8n the first part it has +een discussed a+out the Po er 8ndustry, their strategies, policies, etc.8n the second part it has +een discussed a+out the Ministry of Po er, organi;ations under the, set up of the organi;ations, initiati,es taken +y the ministry of po er # so on. The third part contains a +rief report of 1entral Authority of 8ndia /17A0. Again organi;ations under 17A has +een discussed in this part, major ri,er system hydro potential etc.are also there. The major part of this report is the summer training report. There are t o report under this content. 2ne is forecasting hydroelectric project +y !"P1 / !ational "ydroelectric Po er 1orporation 09 a plan stage ise, ise report. Another report is a+out a Bid of 6ameng

"ydroelectric Project in,ited to A3ST2M +y !77P12 !orth 7ast 7lectric Po er 1orporation0 3td. After this part there are Anne:ures 8 # 88. Anne:ure 8 contains Apeejay 8nformation Support System # Anne:ure 88 contains a report on the industrial ,isit to AT3AS 1ycles +y the college. 4inally the +i+liography.

POWER INDUSTRY

POWER INDUSTRY
7lectric po er is the +ack+one of any economy and thus any de,elopment in the electric po er industry ill ha,e a significant impact on the o,er all economic scenario and ,ice ,ersa. Gi,en the fact that 8ndian industry is gro ing at a rate of < percent per year, the role of electric po er assumes more importance. The Go,ernment has taken many li+erali;ation measures in the po er generation sector. "o e,er, the demand still far9e:ceeds the supply and po er cuts ha,e +ecome e,eryday reality. Thus, the situation indirectly offers a huge potential for pri,ate players, +oth domestic # o,erseas. The report pro,ides a complete analysis on the 8ndian po er industry, starting ith classifications=su+9classification in po er sector +ased on functions /generation companies and Transmission# distri+ution companies0 and o nership. A +road picture of the glo+al po er industry has +een pro,ided follo ed +y a comprehensi,e comparison of 8ndian po er sector scenario ith that of the orld. The structure of the po er industry in 8ndia, the regulations and regulators that control the po er industry in 8ndia, a +rief history of the control regime, the changes in the controls in the last decade ha,e all +een crisply captured in the report. 8ndia is in a dire need of ne capacities in the po er sector. The report gi,es a comprehensi,e analysis a+out the fuel reser,es, supply and demand conditions, the trend in capacity additions in ,arious segments, demand gro th and po er shortages. The performance of 8ndian po er sector in ,arious performance parameters is ,ery poor hen compared ith glo+al standards. The main reason for this is the pro+lems in the State 7lectricity Boards /S7B0 and specific policies of go,ernment, like cross su+sidies. The report analyses pro+lems of 8ndian po er industry /like failure to meet capacity addition target, loss9making S7Bs in a separate section etc0. The strategies and financials of the follo ing major players are gi,en in the report. C$",%!; -,(;(,< +$=,)% !ational Thermal Po er 1orporation, !ational "ydel Po er 1orporation, L(=$"+$$+ Tata po er, BS7S and 17S1 S,!,$ E;$=,%(=(,< B)!%.+

STRATEGIES IN PO0ER INDUSTRY

2ne of the fe

political issues on hich all parties contesting recent elections could agree as the need to encourage in,estment, especially in infrastructure. And ith good reason. 8ndia is plunging head9long to ards an energy crisis that ill cripple the country>s +urgeoning economy if go,ernment does not act fast. As part of 8ndia>s fi,e9year9old economic reform plan, the energy sector as recently opened up to pri,ate in,estments. The ne po er policy assured, among other things, a $< percent rate of return, protection against currency fluctuations and committed +uy +ack arrangements. The pre,ious 1ongress go,ernment had sanctioned eight multi9million dollar "Fast Track" po er projects, +ypassing the usual red tape and a,oiding the years of international tender notices and political horse9trading. Though the ne ?nited 4ront go,ernment has promised to honour the po er deals made +y the pre,ious 1ongress administration, this go,ernment already has some other hea,y financial commitments of its o n. 8n the meantime, the go,ernment and the state9o ned po er sector ha,e no alternati,e +ut to look for ays of increasing the efficiency of the e:isting electricity generating capacity. The -orld Bank>s support in this regard may +e the turning point. 2ne of the major factors +ogging do n electricity generation in 8ndia is the irregular a,aila+ility of fuel for thermal po er stations. Both petroleum and coal +ased plants are suffering from this malady, primarily due to insufficient transportation infrastructure and, in the case of coal, non9optimal utili;ation of a,aila+le natural resources. Steps must +e taken on a ar footing to counter these lacunae. 2n the consumer management side, the go,ernment has facilitated the restructuring of the State 7lectricity Boards ith the help of the -orld Bank. 2@7512M7 452M P2-75 158S8S

A recent report +y the -orld Bank has

arned 8ndia that unless it introduces reforms in its po er sector it could lose millions of dollars in re,enue. The report prescri+es an injection of $( +illion dollars o,er the ne:t fi,e years into the po er sector, ithout hich 8ndia ill +e facing eight to ten hour po er cuts, daily. 2,er in Sri 3anka, 8ndia>s island neigh+our, this cautionary tale is a reality. 2ne +ad monsoon and the nation>s hydro9po er reser,oirs ha,e dropped, una+le to meet the demand for electricity. Business and industry, faced ith daily po er cuts, are losing an estimated $A million dollars a day. 7conomic reforms, introduced in $BB$, are slo ly transforming 8ndia from an

economic laggard into an important emerging market. But politics, a la+yrinthine +ureaucracy and corruption ha,e turned many potential in,estors a ay. Those ho took the plunge in the po er sector, namely eight so called Cfast9trackC po er projects ha,e yet to generate a single mega att of electricity. These projects, one of hich is the contro,ersial 7nron9led Da+hol po er project, ere granted negotiated deals in an effort to speed up the process. But in 8ndia>s arcane +ureaucracy e,ery project reDuires do;ens of appro,als from ,arious state and central go,ernment departments. Part of the pro+lem lies ith the state9run electricity +oards, hich are losing an estimated '( +illion dollars /5s.E,((( crore0 annually. 8n $BBF, the -orld Bank slashed GE%( million in loans to the po er sector +ecause the states refused to stop gi,ing a ay electricity, mostly to politically po erful farmers. A lack of efficient monitoring means that a huge amount of electricity is stolen. The ne ?nited 4ront coalition go,ernment, led +y reform9minded Prime Minister " D De,e Go da, has assured pri,ate companies that efforts ill +e made to +(>?;(/< policies for in,esting in energy and other parts of the cash9star,ed infrastructure. "o e,er, Mr. Go da has to grapple ith the protectionist tendencies of his socialist and communist partners ho are reluctant to pri,atise state9o ned enterprises. Mean hile, the -orld Bank is +ack on the scene ith a plan to restructure the state po er sector +y di,iding up the state electricity +oards into separate companies for generating, transmitting and distri+uting electricity. -ith pri,ate po er projects unlikely to +e operational for at least another t o years, efforts to impro,e the efficiency of the e:isting plants, seem to +e the only solution to 8ndia>s impending +lack9out.

NE0 POLICIES BY GO4ERNMENT


8ndian industry desperately needs +etter po er infrastructure than is currently a,aila+le in the country, for its sur,i,al. The go,ernment needs to take decisi,e measures to prop up the sorely lagging po er generation capa+ilities in 8ndia. 3arge scale pri,atisation and thorough policy restructuring are the need of the day, for the po er industry to gear up and meet present and future needs. T o recent policies are aimed at doing just that. The State 7lectricity Boards /S7Bs0, ith the help of pri,ate partners, are planning to reno,ate the e:isting po er plants +y impro,ing technology. Suffering from a chronic fuel shortage, most plants simply shut do n for e:tended periods e,ery day, lea,ing consumers in the dark. Big factories that need a steady supply of electricity are setting up capti,e po er plants that run on high speed diesel or other hea,y fuels.

The ne liDuid fuel policy is e:pected to cater to the capti,e fuel needs of such plants. 8ndependent po er producers ill +e permitted to use hea,y petroleum stock /"PS0, lo sulphur hea,y stock /3S"S0, hea,y furnace oil /"420, furnace oil /420 and natural gas as primary fuel for the po er projects. "o e,er, the go,ernment has not allo ed high speed diesel to +e used as a fuel for these plants. -hile these policies sho that the go,ernment is making some effort to stall the impending po er crisis, other issues are a aiting decisions. 2n the consumer management side, the go,ernment has facilitated the restructuring of the State 7lectricity Boards ith the help of the -orld Bank. Among the other policies on the an,il is a plan to pri,atise the fuel supply system. 8n most proposed po er projects, fuel leakage and fuel risk responsi+ility ha,e +een among the main stum+ling +locks. The states as the fuel supplier is un illing to sign any guarantees and the pri,ate po er companies are un illing to risk running out of fuel. The ne policies may +e part of the solution, +ut industry to see ho effecti,e these policies are in the long run. aits ith +ated +reath

RESOURCE UTILISATION
By the end of $BB%, 8ndia>s total installed po er generation capacity as A$,$<F Mega att. 2f that, hydro9electricity /hydel0 accounts for almost '< percent, +ut hydel accounts for less than $) percent of the total electricity generated in the first three years of the current eighth plan. 8n the thermal po er segment, the a,erage plant load factor /P340 has impro,ed in recent years, especially in the south and est of the country. Thermal po er generation appears to +e the most promising ay for 8ndia to meet it>s po er reDuirements o,er the ne:t years. The pre,ious go,ernment as ell as the ne ?nited 4ront go,ernment ha,e se,eral projects on hand to +est ser,e this reDuirement. Among the projects on the an,il is a plan to pri,atise the fuel supply system. 8n most proposed po er projects, fuel leakage and fuel risk responsi+ility ha,e +een among the main stum+ling +locks. The states as the fuel supplier is un illing to sign any guarantees and the pri,ate po er companies are un illing to risk running out of fuel. 8ndia has huge reser,es of coal, a sector hich has +een partially pri,atised, +ut the go,ernment has not done enough to attract in,estors to de,elop the mining industry. Also, the concept of de,eloping capti,e mines has not yielded much +enefit for the po er companies due to the pro+lems related to economies of scale. Another related area here this argument is e:tended is the transport sector. The pre,ious ministry of transportation as in the ,ie that the legally enforcea+le

commercial agreement ith transporters of fuel like the rail ays should +e made into a mandatory clause. 2nce the +asic transport and resource utili;ation /mining, petroleum refining0 infrastructure starts de,eloping apace ith the needs of the po er generation industry, the thermal po er units ill start to +e functionally efficient, and the needs of 8ndian industry ill +e +etter met. 5eali;ing that 8ndia faces a fatal electricity crisis in the ,ery near future if pri,atisation of the po er sector ere to mo,e at the usual slo pace that is the norm for large projects, the pre,ious go,ernment took major steps to e:pedite the operations for this sector. 7ight multi9million dollar Cfast trackC po er projects ere gi,en negotiated deals, rather than put them up for tender, to speed up the process. But thanks to +ureaucratic delays and politics, not a single mega att of electricity has +een generated +y any of these projects. 8n most cases the projects are still on paper a aiting appro,als and clearances from myriad state and central go,ernment departments. The only project sho ing any sign of progress is the '.% +illion dollar 7nron9led Da+hol po er project. 8n August $BB%, things looked +leak for 7nron hen the project as cancelled hen a right9 ing go,ernment came to po er in the state of Maharashtra. 3ater the deal as renegotiated ith minimal changes. But the outlook is far from rosy. The fast9track projects ere meant to +ridge 8ndia>s current '( percent electricity shortage. The Planning 1ommission estimates, rather optimistically, that FA,((( mega atts can +e generated +y the end of the 7ighth Plan. 8n fact, actual generation is unlikely to e:ceed $A,((( M-, short +y )(,((( M-. Against the target of $')F.'% M- set for April9Decem+er $BB%9$BB<, only %$(.'% Mhas +een added so far. Bet een $BA( and $BB) the GDP increased +y one percent, hile the elasticity of electricity generation and consumption increased +y $.<% and $.<$ percent, respecti,ely. The elasticity has declined from o,er ) percent in the first and second fi,e9year plans to nearly $.% percent in the Se,enth Plan. This rather dark scenario in one of the major pro+lems the ne ?nited 4ront go,ernment must tackle ,ery Duickly and effecti,ely, if it is to ha,e any success in enhancing 8ndia>s economic prospects as a successful industrial po er in Asia and glo+ally. All eyes are on the coalition go,ernment, +oth ithin 8ndian industry and among foreign in,estors. 8n *anuary $BB<, the right9 ing "indu go,ernment in the 8ndian state of Maharashtra re,ersed itself and appro,ed a contro,ersial ?SG'.% +illion po er plant to +e +uilt +y an American multinational, the 7nron De,elopment 1orporation. 8n Bom+ay, the state>s chief minister, Manohar *oshi, ho in August had scrapped the ',($% mega att project as +eing Canti9peopleC, cleared the project, the single largest foreign in,estment in 8ndia since the go,ernment in $BB$ started ne

economic reforms. The political contro,ersy in hich 7nron +ecame em+roiled in Maharashtra scared off other multi9nationals ary of risking money in 8ndia>s emerging markets. Maharashtra>s right9 ing "indu go,ernment 99an alliance +et een Shi,a Sena and the Bharatiya *anata Party /B*P099 said it as satisfied ith the concessions made +y the ?S9+ased multi9national during the arduous renegotiations. "o e,er, an 7nron spokesman said that hile the state>s ,olte face as Ca significant stepC, some details remained to +e sorted out. 7nron and state electricity authorities are reportedly still +argaining o,er the price the multinational ill +e a+le to charge for its po er. Mr *oshi tore up the 7nron deal, made +y the pre,ious 1ongress state go,ernment, after the right9 ing "indu coalition on the Maharashtra elections. The chief minister said the contract as a arded ithout competiti,e +idding. "e also claimed that the po er plant threatened to damage the coastal en,ironment and that 7nron as demanding high rates. The "indu nationalists portrayed 7nron as a multinational ith fangs, ready to drain the sa,ings of 8ndia>s poor farmers and to nspeople. 8t pro,ed an effecti,e ,ote9 inner for them. 7nron as lumped ith MT@, Pepsi91ola and 6entucky 4ried 1hicken as sym+ols of estern o+no:iousness. The 7nron fiasco as held up +y the "indu e:tremists as a cautionary tale of all that could go rong hen 8ndia opened its doors to greedy estern firms, after nearly half a century of a shut9off socialist economy. After Mr *oshi canceled the project, 7nron>s glamorous chief e:ecuti,e officer, 5e+ecca Mark, lo++ied smoothly ith Bom+ay>s right9 ing "indu chiefs to change their minds. Ms Mark remarked, C8ndians +elie,e in reincarnation, so the /po er project0 too can reincarnate.C The ne ly9elected "indu politicians also faced the prospect of paying off stiff penalty fees to 7nron. 8nternational ar+itrators might ha,e forced Maharashtra to compensate 7nron ith up to G' +illion for tearing up the project. Mr *oshi claimed that 7nron had agreed to lo er its rates and scale do n the project>s original cost to G$.A +illion. Maharashtra, and especially Bom+ay, the country>s economic po erhouse, is also desperately short of electricity. This makes the project critical in more ays than one.

INDIAN PO0ER SECTOR- CHANGE OF GEAR


The old order changeth, yielding ay to the ne . 3ord Tennyson&s lyric ill ring true as long as there e:ists the human ill to stri,e for +etter. Sure enough, one can today itness reform, though incipient yet, rearing its tiny head into the ,ast and grossly mismanaged 8ndian po er sector. 8ndisputa+ly, the single most significant e,ent that the po er sector itnessed in $BBA as the passage of the 7lectricity 5egulatory Act $BBA in *uly, pro,iding for the esta+lishment of the 1entral

7lectricity 5egulatory 1ommission /17510 and the option to state go,ernments to set up their State 7lectricity 5egulatory 1ommissions /S751s0. 1.P%$+$", +,!,$ )/ 2.P%)@;$>+ /!=("# ,A$ ?)B$% 2.Y$+ ,) %!,()"!; ,!%(//: )"$ +,$? 4.R$/)%>+ "$$.$. (" ,A$ ?)B$% 6.TA$ >$.(! =A!%,+ ?)B$% +$=,)% %$+,%-=,-%("# !//!(%+ +$=,)% !A$!. +$=,)%

P%$+$", +,!,$ )/ !//!(%+


Su+stantial de,elopment may ha,e taken place in po er generation, stepping it up from $ )(( M- to B( ((( M- since 8ndependence. "o e,er, on the flip side, the energy shortage of a+out $$.%H and peak shortage of a+out $AH continue to plague our economy. A Merrill 3ynch study further re,eals that as against a national plant load factor /P340 a,erage of <)H, State 7lectricity Boards /S7Bs0 ha,e recorded a P34 of only %AH along ith high transmission # distri+ution /T#D0 losses of almost ')H. The most significant reason for economic slo do n is that the gro th of infrastructure has not kept pace ith the economic gro th. 8nstead of pro,iding a fillip, it has +ecome the greatest +ottleneck. Any amount of po er generated in po er stations is of little significance if a relia+le and efficient system is not a,aila+le to deli,er the electricity to the consumer. 8n this regard, consider the S7Bs. They are in a deplora+le state of affairs and terri+le financial health, plagued ith pro+lems of high T#D losses, large outstanding to central sector companies, inadeDuate in,estment, and irrational tariff structures. These pro+lems, ith numerous respecti,e yet ine:trica+ly interlinked causes, result in po er shortages, supply of poor Duality po er to customers, and the eroding of the financial ,ia+ility of S7Bs. The $BBE=BA 7conomic Sur,ey sho ed up the orst performance of S7Bs since $BA%, ith the o,erall rate of return /5250 plummeting to 9$E.<H. 8n $BBA=BB, the 525 is e:pected to slide further to 9$E.AH / hereas the 7lectricity /Supply0 Act prescri+es that each S7B earn a minimum return of )H.0 A Planning 1ommission report re,ealed that, in $BB<=BE, the com+ined commercial losses /e:cluding su+sidies0 of the country>s $B inefficient S7Bs touched a hopping 5s $( ((( crore /?S G'.) +illion0. The losses ould ha,e +een e,en higher, actually more than dou+le that total, had the S7Bs paid dues to other go,ernment utilities and enterprises. As of end9$BBA, the losses are still staggeringly high at 5s E%(( crore /annual inclusi,e of su+sidy0. 4urthermore, dues to the central po er utilities ha,e increased +y around 5s F((( crore in the nine months ending Septem+er $BBA. Delhi, Bihar, and ?ttar Pradesh

together account for around %(H /5s $F A(( crore0 of the outstanding to ards the po er companies, including !ational Thermal Po er 1orporation /!TP10, !ational "ydro Po er 1orporation /!"P10, 5ural 7lectrification 1orporation /5710, Po er 4inance 1orporation /P410, and Po er Grid 1orporation /PG10.

P%)@;$>+ /!=("# ,A$ ?)B$% +$=,)%


8ndia is a rare e:ample of a large country here the electricity supply industry continues to function essentially like a group of go,ernment departments. And the most pro+lematic area in the electricity sector has +een the operational and financial performance of the State 7lectricity Boards /S7Bs0. Since the State has +een directly regulating most S7B acti,ities, they are prone to political interference of ,arying degrees as suited to populist o+jecti,es. 4rom day9to9day operational matters to tariff setting, all are suscepti+le to such inter,entions. Take su+sidies. 1ertain sections of consumers, like farmers and domestic users, continue to recei,e huge su+sidies that erode the financial health of S7Bs. Su+sidies ere introduced to promote economic de,elopment ith the agricultural sector claiming the major share. The initial impact as small and could +e funded through Go,ernment +udgets. But during the $BA(s and $BB(s, the element of su+sidy increased manifold, could not +e funded +y the Go,ernment and appeared as losses to S7Bs. The Ieffecti,e su+sidy&, i.e. the difference +et een cost and re,enue earned, for farm and home users has +een assessed at 5s $B '(( crore in $BB<=BE, almost $.FH of 8ndia>s gross domestic product /GDP0. Added to this, S7Bs hea,ily cross9su+sidise po er thus totally ske ing po er consumption. Most S7Bs sho stupendous losses if state go,ernments do not pay out su+sidies. 8n $BB<=BE, state go,ernments collecti,ely paid around 5s ' E(( crore to impro,e the S7B loss position. State9 ise figures indicate that e,en some of the +etter +oards sho that their profits or losses are dependent on the su+sidy doled out +y the state go,ernments. Take the case of Maharashtra. 8f the +oard>s profits during $BB%=B< and $BB<=BE ere 5s '').' crore and 5s $B< crore respecti,ely, it is not to +e o,erlooked that go,ernment su+sidies during the same periods ere to the tune of 5s <)( crore and 5s '<A crore, respecti,ely. All in all, it is clear that electric po er has +een considered more of a social ser,ice than a +usiness. Prices do not reflect costs and state institutions are dependent on allocations from the pu+lic +udget, stretching the demand on pu+lic funds +eyond capacity. This also impedes the de,elopment of pri,ate capital markets, the only real alternati,e to continued go,ernment funding. Some steps to alle,iate the situation, hich unfortunately are not carried out to optimum le,els, are enhancing generation capacity, reno,ating and maintaining e:isting plants, increasing efficiency, reducing losses and attracting pri,ate as ell as foreign in,estment in

po er. Most importantly, tariff reforms should +e initiated to impro,e the health of S7Bs, as non9remunerati,e tariffs and hea,y su+sidi;ation are the primary causes of the S7Bs current financial status. The esta+lishment of a suita+le regulatory mechanism is a key area of reform e:ercise. The fast pace of reforms in the po er sector needed to attract in,estment orth 5s ' %( ((( crore needed till '((', may come to nought if states do not shun populism and re,i,e their S7Bs that lose so much annually.

Y$+ ,) %!,()"!; ,!%(//: )"$ +,$? !A$!.


Poor State 7lectricity Board /S7B0 performance is ,astly attri+uted to the lo tariffs set +y the state go,ernment as ell as poor re,enue collection and increasing costs. The e:tremely lo tariff le,els set +y state go,ernments yield re,enues ell +elo the a,erage cost of generation. According to the present 7lectricity /Supply0 Act, all states go,ernments are to prescri+e po er tariffs hich permit S7Bs to generate a minimum return of )H on their net fi:ed assets after meeting fi:ed and operating costs, interests, and ta: lia+ilities. "o e,er, current tariff le,els do not meet e,en A(H of the total cost of supplies. Trends re,eal that the a,erage tariff hike reDuired to turn around S7B losses has increased o,er the last fe years. -hile the increase in tariff reDuired in $BB'=B) as around '< paise per unit, the figure in $BB<=BE as around FF paise. These increases ould ha,e generated around 5s %<(( crore and 5s $' )(( crore in $BB'=B) and $BB<=BE, respecti,ely. A recent analysis estimates the reDuired hike no at F( paise. This ill not only ena+le all S7Bs to achie,e the minimum three per cent 525 +ut also result in additional resource mo+ili;ation of 5s $' ((( crore. According to the 7nergy Policy 1ommittee /7P10, ithout a rationali;ation of electricity tariffs, the net orth of S7Bs ould +e eroded to the e:tent of 5s EE ((( crore in the ne:t decade. This raises serious dou+ts a+out the states> a+ility to contri+ute their share of po er capacity addition during the !inth 4i,e Jear Plan and +eyond, 2ne does see indicators of hope. 8n Decem+er $BBA, the Andhra Pradesh 1a+inet hiked the tariff for all sectors, from '$H to 'AH to alle,iate the financial trou+les of the APS7B. 2n 1hristmas 7,e in $BBA, the -est Bengal go,ernment allo ed the -BS7B to mo+ili;e an additional 5s 'FE crore annually through its latest +asic tariff re,ision. This in,ol,es a steep rise in all agriculture9 related tariffs, ranging from FFH to <$H. The unsatisfactory financial health of the S7Bs has acted as a constraint to pro,ide adeDuate in,estments for impro,ing the utili;ation of e:isting capacities and for ne capacity creation. There is hardly any option left e:cept to reform and restructure the po er industry and make it a ,ia+le sector. Any amount of reforms and restructuring of the po er sector ould ho e,er, remain totally ineffectual

ithout pri,ate sector participation in transmission and distri+ution. Most S7Bs ha,e +ecome un ieldy, due to increase in generation capacity, massi,e transmission, and distri+ution net ork co,ering nooks and corners of state and e,er9increasing consumer clientele. The management of such huge utilities in,ol,ing technical, commercial, managerial, personnel, and industrial relations is +ecoming increasingly difficult. Although ,arious State go,ernments ha,e initiated action for the esta+lishment of regulatory commissions, the progress till date is not ,ery considera+le. This is pro+a+ly +ecause of the long legislati,e processes in,ol,ed in enacting a ne reform compounded +y the lack of political ill and the strength to follo it through. Also, the pre,alent la+our policies and legislation in 8ndia are not conduci,e to retrenchment. 4urther, any ne system replacing a long esta+lished one needs some time to demonstrate results and has to go through a period of progressi,e adjustments in the light of e:perience gained till it acDuires an optimum structure.

R$/)%>+ "$$.$. (" ,A$ ?)B$% +$=,)%


8t is idely felt that pri,ate po er ill +e e:pensi,e hich State 7lectricity Boards /S7Bs0 ill not +e a+le to afford. The success of the pri,ate po er projects depends on the health of the +uyers i.e. S7Bs. As it is, some S7Bs ha,e signed up projects far in e:cess of their reDuirement gi,ing rise to the +elief that hardly half ill +e implemented successfully. -hen the po er sector as thro n open to pri,ate in,estment, at the +eginning of this decade, most state go,ernments as also the 1entre ere of the ,ie that costly po er as +etter than no po er at all. But after a+out se,en years of de+ating on hat kind of role the 1entre, the 48s, the state go,ernments, and the S7Bs ha,e to play, the isdom has finally da ned on the policy9makers that S7Bs cannot afford costly po er. "ealthy de,elopments are that the 1entral 7lectricity 5egulatory 1ommission /17510 is in place. 8t ill kick9start gro th in the po er sector +y rationali;ing tariffs, formulating clear policies on su+sidy and promoting en,ironmentally +enign policies. -hile this is a major de,elopment, state go,ernments need to get their act together. They must replicate the central initiati,e +y setting up State 7lectricity 5egulatory 1ommissions /S751s0, corporati;ing and un+undling S7Bs and to top it all, creating a conduci,e climate of assured returns for pri,ate in,estors, apart from clearing off the massi,e 5s $E ((( crore dues to central po er companies. This ill +e the first step to impro,e financial health, create confidence among the industry, agriculture and general pu+lic, hich ill, in turn, create credi+ility among pri,ate participants and accelerate the process of pri,ati;ation. 2ne can then ultimately look for ard to a rapid e:pansion of the po er sector, ensuring adeDuate and relia+le po er supply at afforda+le prices to consumers. 4urthermore, po er utilities ha,e to stop +eing ,ertically integrated monopolies and

need to separate generation from transmission and distri+ution so that they can rationali;e their management. Though almost all the states ha,e reali;ed the need for po er sector reforms, especially trimming their +oards to reduce the fla+, it is generally +elie,ed that the reforms process ill take a hile to complete. -hile the state of 2rissa, has gone ahead ith the un+undling process, others such as "aryana and Andhra Pradesh are in the process, and states such as Punja+, Maharashtra, 5ajasthan, ?ttar Pradesh, -. Bengal, and Gujrat are in the process of preparing the +lueprints for the reform process. The po er sector, like many others, may +e a case in mismanagement and under9 performance. But one can hope for rectification. The 1entre&s decision to constitute the 1751 and S751s, open up the transmission sector to pri,ate players, clear most fast9track projects and formulate a ne mega and hydel policy gi,es ine:tinguisha+le hope of lighting up the ne:t millennium.

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"ere are some headlines, reiterating the a+o,e o+ser,ations. Po er Ministry February 1999 1entre urges February 1999 Panel set up January 1999 moots Mahaarshtra for restructuring phased S7B of reforms to the in S7Bs recast D@B

consider cash9strapped

Taking a cue from the Maharashtra S7B, the "aryana S7B, the D@B, the 2rissa S7B, and the Andhra Pradesh S7B are planning to automate their po er distri+ution net ork so as to reduce defaults and induce efficiency December 1998 ?ttar Pradesh December 1998 Three9pronged December 1998 scheme ca+inet to clears un+undle S7B G7B re,amp

Banks may +e allo ed to fund moderni;ation of +oth S7Bs and e:isting po er projects, hich ha,e so long +een funded through +udgetary allocations December 1998 Po er sector reforms in Andhra Pradesh ready for take9off -orld Bank to gi,e 5s F<(( crore for Andhra Pradesh S7B restructuring November-December 1998

Gujarat nod 6arnataka S7B November 1998 Gujarat po er ?ttar Pradesh Punja+ to October 1998 ADB to March 1998 tariff +egins set

for dra s panel major up

po er up

regulatory recast

+ody +lueprint soon sector +ody re,amp

to +e constituted re,amp in po er po er regulatory Pradesh po er +oard

finance

Madhya part9fund 2714

2714 decides to 5s A<$ crore March 1998

"aryana S7B restructuring programme loan for Bengal po er +oard

2714 keen to in,est in S7Bs restructuring August 1997 The *apanese multilateral aid agency, 2,erseas 7conomic 1ooperation 4und /27140, is keen to spread its financing in the po er sector from specific projects to the restructuring of S7Bs. After the -orld Bank and the Asian De,elopment Bank /ADB0 the *apanese agency is the third institution to seek entry in the restructuring of S7Bs, for hich it is looking at e:ecuting agencies like the Po er 4inance 1orporation /P410. 2714 has committed as much as F<H of its G$.) +illion coming to 8ndia in the current financial year for the po er sector.

MINISTRY OF POWER

MINISTRY OF POWER
The Ministry of Po er started functioning independently ith effect from 'nd *uly, $BB'. 7arlier it as kno n as the Ministry of 7nergy comprising the Departments of Po er, 1oal and !on91on,entional 7nergy Sources. 7lectricity is a concurrent su+ject at 7ntry )A in 3ist 888 of the Se,enth Schedule of the 1onstitution of 8ndia. The Ministry of Po er is primarily responsi+le for the de,elopment of electrical energy in the country. The Ministry is concerned ith perspecti,e planning, policy formulation, processing of projects for in,estment decision, monitoring of the implementation of po er projects, training and manpo er de,elopment and the administration and enactment of legislation in regard to thermal, hydro po er generation, transmission and distri+ution. The Ministry of Po er is responsi+le for the administration of the 8ndian 7lectricity Act, $B$( and 7lectricity /Supply0 Act, $BFA, 7lectricity 5egulatory 1ommission Act, $BBA, 7lectricity 3a s /Amendment0 Act, $BBA /!o.'' of $BBA0 7nergy 1onser,ation Act, '(($ and to undertake such amendments to these Acts, as may +e necessary from time to time, in conformity ith the Go,ernment&s policy o+jecti,es. The Ministry of Po er is mainly responsi+le for e,ol,ing general policy in the field of energy. The main items of ork dealt ith +y the Ministry of Po er are as +elo K $. General Policy in the 7lectric Po er Sector and issues relating to energy policy. /Details of short, medium and long9term policies in term policies in terms of formulation, acceptance, implementation and re,ie of such policies, cutting across sectors, fuels, regions and cross country flo s0. '. All matters relating to hydroelectric po er /e:cept small=mini=micro hydel projects of and +elo '% M- capacity0 and thermal po er and transmission system net ork. ). 5esearch, de,elopment and technical assistance relating to hydroelectric and thermal po er and transmission system net ork. F. Administration of the 8ndian 7lectricity Act, $B$( /B of $B$(0 and 7lectricity /Supply0 Act, $BFA /%F of $BFA0, 7lectricity 5egulatory 1ommissions Act $BBA and 7lectricity 3a s /Amendment0 Act, $BBA /!o.'' of $BBA0 and 7nergy 1onser,ation Act, '(($. %. All matters relating to 1entral 7lectricity Authority, 1entral 7lectricity Board and 1entral 7lectricity 5egulatory 1ommission.

<. 5ural 7lectrification, po er schemes in ?nion Territories and issues relating to po er supply in the States and ?nion Territories. E. Matters relating to the follo ing ?ndertakings=2rganisations etc.K /a0 The Damodar @alley 1orporation. /+0 The Bhakra Beas Management Board /e:cept matters relating to irrigation0. /c0 !ational Thermal Po er 1orporation 3imited. /d0 !ational "ydro9electric Po er 1orporation 3imited. /e0 5ural 7lectrification 1orporation 3imited. /f0 !orth 7astern 7lectric Po er 1orporation 3imited. /g0 Po er Grid 1orporation of 8ndia 3imited. /h0 Po er 4inance 1orporation 3imited. /i0 Tehri "ydro De,elopment 1orporation. /j0 !athpa *hakri Po er 1orporation. /k0 1entral Po er 5esearch 8nstitute. /l0 !ational Po er Training 8nstitute. /m0 7nergy Management 1entre. /n0 Po er Trading 1orporation. A. 2ther Pu+lic Sector 7nterprises concerned ith the su+ject included under this Ministry e:cept such projects as are specifically allotted to any other Ministry or Department. B. All matter concerning 7nergy 1onser,ation and 7nergy 7fficiency pertaining to the Po er Sector.

ORGANISATIONS UNDER MINISTRY OF PO0ER


8n all technical and economic maters, Ministry of Po er is assisted +y the 1entral 7lectricity Authority /17A0 constituted under the 7lectricity /Supply0 Act, $BFA. Badarpur Management 1ontract 1ell /BM110, a su+ordinate office of this Ministry, is responsi+le for administering the Badarpur Thermal Po er Station /BTPS0 Management 1ontract +et een the Go,ernment of 8ndia and !TP1. The construction and operation of generation and transmission projects in the 1entral Sector are entrusted to 1entral Sector Po er 1orporations, ,i;. The !ational Thermal Po er 1orporation /!TP10, the !ational "ydro 7lectric Po er 1orporation /!"P10, the !orth 7astern 7lectric Po er 1orporation and the Po er Grid 1orporation of 8ndia 3imited /PG1830. The Po er Grid is responsi+le for all the e:isting and future transmission projects in the 1entral Sector and also for the formation of the !ational Po er Grid. T o *oint @enture Po er 1orporations namely, !athpa *hakri Po er 1orporation /!*P10 and Tehri "ydro De,elopment

1orporation /T"D10 are responsi+le for the e:ecution of the !athpa *hakri Po er Project in "imachal Pradesh and projects of the Tehri "ydro Po er 1omple: in ?ttaranchal respecti,ely. T o statutory +odies i.e., the Damodar @alley 1orporation /D@10 and the Bhakra Beas Management Board /BBMB0 are also under the administrati,e control of the Ministry of Po er. Programmes of rural electrification are pro,ided financial assistance +y the 5ural 7lectrification 1orporation /5710 under the Ministry of Po er. The Po er 4inance 1orporation /P410 pro,ides term9finance to projects in the po er sector. 4urther, the autonomous +odies /societies0 i.e. 1entral Po er 5esearch 8nstitute /1P580, the !ational Po er Training 8nstitute /!PT80 and the 7nergy Management 1entre /7M10 are also under the administrati,e control of the Ministry of Po er. A Po er Trading 1orporation /PT10 has also +een set up in April, $BBB to catalyse de,elopment of mega po er projects and to promote e:change of po er ith neigh+ouring countries.

ORGANISATIONAL SET-UP
Shri Anant Gangaram Geete is the Minister of Po er ith effect from '<.(A.'((' and Smt. *aya anti Mehta is the Minister of State of Po er ith effect from $).$(.$BBB. Shri. 5.@. Shahi is the Secretary/Po er0."e is assisted +y a Special Secretary, an Additional Secretary and fi,e *oint Secretaries, including the 4inancial Ad,iser. The Additional Secretary looks after the ork relating to 2peration Monitoring /2M0, Thermal, 7nergy 1onser,ation, esta+lishment matters of 1entral 7lectricity Authority, including that of the 1entral Po er 7ngineering /Group A0 Ser,ices. The allocation of ork among the fi,e *oint Secretaries in the Ministry of Po er is as underK /i0 "ydel, 1oordination, Press and Pu+licity. /ii0 Administration, Thermal and Distri+ution, including APDP and 8T. /iii0 5eforms # 5estructuring, @igilance # Security, Po er 4inance 1orporation /P410 and 5ural 7lectrification 1orporation /5710, Policy, Planning and 7:ternal Assistance, 2fficial 3anguage. /i,0 Accounts # 4inance, 5esource Planning, Monitoring of 4inancial performance of S7Bs, and follo up action on the recommendation of Montek Singh Ahlu alia 1ommittee # !.6. Singh 1ommittee. /,0 8n,estment Promotion 1ell, Transmission, Po ergrid 1orporation of 8ndia 3td. /PG1830, Po er Trading 1orporation /PT10, Training # 5esearch and 2peration Monitoring. There is a Principal Accounts 2ffice headed +y the 1ontroller of Accounts ho in turn reports to the 4inancial Ad,iser in the Ministry of Po er. Matters relating to reser,ations for S1=ST, Physically "andicapped and 2B1 are dealt +y the respecti,e 3iaison 2fficers. Matters relating to recreation acti,ities are dealt +y

Po er Sport 1ontrol Board. The total staff strength of the Ministry is )$). There are F< omen employees in the Ministry of Po er /Sectt.0

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The 1hief Ministers met on $<th 2cto+er and )rd Decem+er, $BB< to discuss and deli+erate upon the issues pertaining to the po er sector. 5ecogni;ed that the gap +et een demand and supply of po er is idening. Ackno ledged that the financial position of State 7lectricity Boards is fast deteriorating and the future de,elopment of the po er sector cannot +e sustained ithout ,ia+le State 7lectricity Boards and impro,ement of operational performance of State 7lectricity Boards. Agreed that reforms and restructuring of State 7lectricity Boards are urgent and must +e carried out in a definite time frame. 8dentified creation of 5egulatory 1ommissions as a step in this direction. !oted that the reDuirements of the future e:pansion and impro,ement of po er sector cannot +e fully achie,ed through pu+lic resources alone and it is essential to encourage pri,ate sector participation in generation, transmission and distri+ution. 2+ser,ed that the changing scenario in the po er sector calls forfurther delegation of po ers and simplification of procedures.

A national consensus e,ol,ed for impro,ing the performance of the po er sector in a time +ound manner and the follo ing as adopted. I. N!,()"!; E"$%#< P);(=< The Go,ernment ould soon finalise a !ational 7nergy Policy. II. S,!,$ E;$=,%(=(,< R$#-;!,)%< C)>>(++()" 7ach State=?nion Territory shall set up an independent State 7lectricity 5egulatory 1ommission /S7510. To set up S751s, 1entral Go,ernment ill amend 8ndian 7lectricity Act, $B$( and 7lectricity /Supply0 Act, $BFA. To start ith such S751s ill undertake only tariff fi:ation. 3icensing, planning and other related functions could also +e delegated to S751s as and hen each State Go,ernment notifies it. Appeals against orders of S751s ill +e to respecti,e "igh 1ourts unless any State Go,ernment specifically prefers such appeals +eing made to the 1entral 7lectricity

5egulatory 1ommission. III. C$",%!; E;$=,%(=(,< R$#-;!,)%< C)>>(++()" ?nion Go,ernment ill set up a 1entral 7lectricity 5egulatory 1ommission /17510 1751 ill set the +ulk tariffs for all 1entral generating and transmission utilities. 3icensing, planning and other related functions could also +e delegated to 1751 as and hen the 1entral Go,ernment notifies it. All issues concerning inter9State flo and e:change of po er shall also +e decided +y the 1751. To ena+le setting up of 1751, 1entral Go,ernment Act, $B$( and 7lectricity /Supply0 Act, $BFA. I4. R!,()"!;(+!,()" )/ R$,!(; T!%(//+ Determination of retail tariffs, including heeling charges etc., ill +e decided +y S751s hich ill ensure a minimum o,erall )H rate of return to each utility ith immediate effect. 1ross 9su+sidi;ation +et een categories of consumers may +e allo ed +y S751s. !o sector shall, ho e,er, pay less than %(H of the a,erage cost of supply / cost of generation plus transmission and distri+ution0. Tariffs for agricultural sector ill not +e less than fifty paise per 6 h to +e +rought to %(H of the a,erage cost in not more than three years. 5ecommendations of S751s are mandatory. 8f any de,iations from tariffs recommended +y it are made +y a State=?T Go,ernment, it ill ha,e to pro,ide for the financial implications of such de,iations e:plicitly in the State +udget. 4uel Adjustment 1harges /41A0 ould +e automatically incorporated in the tariff . There shall +e a package of incenti,es and disincenti,es to encourage and facilitate the implementation of tariff rationalisation +y the States. 4. P%('!,$ S$=,)% P!%,(=(?!,()" (" D(+,%(@-,()" State Go,ernments agree to a gradual programme of pri,ate sector participation in distri+ution of electricity. The process of pri,ate participation shall +e initially in one or t o ,ia+le geographical areas co,ering +oth ur+an and rural areas in a State and the State may e:tend this to other parts of the state gradually. 4I. R);$ )/ C$",%!; A#$"=($+ The 1entral Go,ernment ould make a comprehensi,e re,ie of the role of ill amend 8ndian 7lectricity

1entral 7lectricity Authority /17A0. Techno9economic appro,al of competiti,ely +id po er projects ill +e simplified and 17A shall not +e concerned ith capital cost, tariff and other commercial aspects of the project. Po ers regarding appro,al of projects shall stand delegated to the States in respect of thermal po er stations up to '%( M-. "o e,er, in respect of thermal projects +eyond '%( M- capacity and other schemes, 17A s appraisal ill continue in respect of planning and other related matters, such as to promote +est optimal de,elopment of the ri,er and its tri+utaries for po er generation including proper hydro9thermal coordination the suita+ility of location and si;e of thermal po er stationsL fuel linkagesL adeDuacy of po er e,acuation facilities co,ering inter9state and intra9state and the transmission schemes form an integral part of the !ational Po er Grid for ma:imi;ation of +enefits for the country as a hole. Su+ject to such technical clearances hich shall +e accorded ithin t o months State Go,ernments ill ha,e po ers to accord appro,al for po er projects. The role of 48PB ill +e minimised +y putting as many projects on the automatic clearance route as feasi+le. Go,ernment of 8ndia ill issue transparent guidelines and delegate more po ers for en,ironmental clearance to State agencies. State agencies should eDuip themsel,es ith reDuisite physical and technical e:pertise. Go,ernment of 8ndia ill delegate more po ers to the states for issue of forest clearances. Statutory amendments ill +e made in the rele,ant 1entral statutes. Ministry of 7n,ironment # 4orests ha,e proposed the follo ing delegation to the States for en,ironment clearance K9 /80 All cogeneration plants and capti,e po er plants up to '%( M/ii0 1oal +ased plants up to %(( M- using fluidised +ed technology su+ject to sensiti,e areas restrictions Po er stations up to '%( M- on con,entional technology /i,0 Gas=!aphtha +ased station up to %(( M4II. A-,)")>< ,) ,A$ S,!,$ E;$=,%(=(,< B)!%.+ States ill allo ma:imum possi+le autonomy to the State 7lectricity Boards. The State 7lectricity Boards ill +e restructured and corporatised and run on commercial +asis. 4III. I>?%)'$>$",+ (" ,A$ M!"!#$>$", P%!=,(=$+ )/ S,!,$ E;$=,%(=(,< B)!%.+ State 7lectricity Boards ill professionalise their technical in,entory manpo er and project management practices.

I9. I>?%)'$>$", )/ PA<+(=!; P!%!>$,$%+ Go,ernment of 8ndia ill carry out necessary amendments in the rele,ant Acts=5ules to allo pri,ate participation in transmission. State Go,ernments ill pro,ide higher allocation for early completion of pu+lic sector projects 5eno,ation and moderni;ation of e:isting po er plants shall +e done in a time +ound manner. P41 and other financial institutions ill gi,e higher priority for funding of 5#M schemes. 1learance to 5#M projects ill fully +e delegated to the States and no clearance ill +e reDuired from 17A. P34 of those thermal po er stations ha,ing less than F(H P34 at present ould +e increased +y )H annually, +y 'H in case of those plants ith P34 +et een F( and <(Hand +y $H for those plants ith P34 o,er <(H. The o,erall P34 in the State sector in the country must come up to a minimum of <%H and the national a,erage to E(H+y '((' A.D. 1ompulsory metering at su+stations and on all major feeders ould +e introduced. 1ompulsory metering of all ne electricity connections as also of connections to agriculture sector e:ceeding $( "P ill +e undertaken and completed in t o years. All electric supplies ould +e metered +y '((' A.D. 1ompulsory annual energy audit of large consumers i.e.,$(( 6@A and a+o,e ould +e undertaken. Time of the day metering load management. ould +e introduced for +ig po er consumers for +etter

9. C)#$"$%!,()"/C!?,('$ ?)B$% ?;!",+ State Go,ernments ill encourage co9generation= capti,e po er plants. To facilitate e,acuation of po er from these plants to the grids, States shall formulate clear and transparent policies for purchase of po er and heeling charges hich pro,ide fair returns to the 1ogeneration=1apti,e po er plant o ners. 1apti,e po er plants could also sell po er to a group of industries as ell as other categories of consumers in the said industrial ;one or area. -heeling of po er from capti,e po er plants to consumers located at a distance or through displacement +asis shall +e encouraged and the States ill issue clear and transparent long term policies in this regard. 9I. A.'!"=$ A=,()" !". H(#A P%()%(,< /)% H<.%) P%)C$=,+ A national policy on hydro po er de,elopment ill +e e,ol,ed +y the 1entral Go,ernment hich, inter9alia, ould include de,elopment of mega hydro projects, +oth in the pu+lic sector and the pri,ate sector, at locations ith su+stantial hydro potential, along ith concomitant transmission facilities for e,acuation of po er to other 5egions=states. States shall prepare a shelf of fully cleared hydro projects for implementation on high priority.

Special efforts ill +e made to promote hydro9electric projects in "imachal Pradesh and *ammu # 6ashmir. 9II. D-$ E>?A!+(+ /)% I"'$+,>$", (" N)%,A E!+,$%" R$#()" Since there are geographical constraints in the !orth97astern region, the Go,ernment shall constantly re,ie the pu+lic and pri,ate in,estments +eing made in that region so that these States get eDuita+le shares in the in,estments in the po er sector. 9III. A;;)=!,()" )/ ;(D-(. /-$;+ Go,ernment shall finalise the linkages of allocation of liDuid fuels for po er plants in consultation ith State Go,ernments soon. 9I4. M$#! ?)B$% ?%)C$=,+ !, ?(, A$!.+ De,elopment of mega po er projects at mine pitheads, +oth in the pu+lic sector and the pri,ate sector, ith transmission facilities for e,acuation of po er to other 5egions= states ould +e encouraged. 94 S$,,("# -? )/ B!+A$%($+. 1oal 8ndia 3imited and its su+sidiaries shall put up asheries at pitheads, here,er necessary. 8n case 183 cannot set up the ashery pri,ate sector ould +e permitted to set up such asheries at pitheads. 8n either case, supply, ashing and transportation of coal shall +e on the +asis of legally enforcea+le commercial contracts.

I"(,(!,('$+ ,!E$" @< M("(+,%< )/ P)B$%


8. Major 3egislati,e initiati,es The !e 7lectricity Bill 8n keeping ith the comprehensi,e approach, The ?nion Ministry of Po er decided to come up ith a comprehensi,e legislation so as to put together in one place all the legislati,e measures reDuired to push the sector onto a trajectory of sound commercial gro th and to ena+le the States and the 1enter to mo,e in harmony and coordination. 8t takes into account the mo,e to ards a competiti,e scenario, here regulators on the one hand and pri,ate po er utilities on the other shall play increasingly significant roles. The Bill pro,ides a comprehensi,e yet fle:i+le legislati,e frame ork for po er de,elopment. The salient features of the Bill areK The 1entral Go,ernment to prepare a !ational 7lectricity Policy in consultation ith State Go,ernments. A thrust to complete rural electrification and pro,ide for management of rural distri+ution +y Panchayats, 1ooperati,e Societies, non9Go,ernment organi;ations, franchisees etc.

Generation to +e delicensed and capti,e generation to +e freely permitted. "ydro projects ould, ho e,er, need appro,al of the state go,ernments and clearance from the 1entral 7lectricity Authority. Transmission ?tility at the 1entral as ell as State le,el, to +e a Go,ernment company9 ith responsi+ility for planned and coordinated de,elopment of transmission net ork. Pro,ision for pri,ate transmission licensees. 2pen access in transmission from the outset ith pro,ision for surcharge for taking care of current le,el of cross su+sidy ith the surcharge +eing gradually phased out. Distri+ution licensees ould +e free to undertake generation and generating companies ould +e free to take up distri+ution licensees. The State 7lectricity 5egulatory 1ommission is a mandatory reDuirement. Pro,ision for license free generation and distri+ution in the rural areas. The S751s may permit open access in distri+ution in phases ith surcharge for current le,el of cross su+sidy to +e gradually phased out along ith cross su+sidies and o+ligation to supply. Pro,ision for payment of su+sidy through +udget. 4or rural and remote areas stand alone systems for generation and distri+ution ould +e permitted. Trading as a distinct acti,ity is +eing recogni;ed ith the safeguard of the 5egulatory 1ommission +eing authori;ed to fi: ceilings on trading margins, if necessary. The State Go,ernments ha,e fle:i+ility to un+undle the S7Bs or continue ith them as distri+ution licensees and State Transmission ?tility. The Bill does not prescri+e any reform model, instead pro,ides fle:i+ility to the State Go,ernment to choose the model suiting to their conditions. Metering of all electricity supplied made mandatory. An Appellate Tri+unal to hear appeals against the decision of 1751 and S751s. Pro,isions relating to theft of electricity made more stringent

7nergy 1onser,ation Act, '(($ and other Demand Side Management Measures 7nacted on 2cto+er $, '(($, the 7nergy 1onser,ation Act lays do n concrete measures to ensure efficient use of energy and its conser,ation. The Act came into effect on March $, '(('. A Bureau of 7nergy 7fficiency /B770 has +een set up to make ide ranging regulations to further the o+jecti,es of the Act. Also, 1entral and State Go,ernments ha,e +een empo ered to facilitate and enforce efficient use of

energy and its conser,ation. There are Pro,isions of penalties for failures and on the system of adjudication. Standards and 3a+eling /S#30 ha,e +een identified as a key area for energy efficiency impro,ement in line ith the e:perience of the de,eloped countries. Standards and 1odes /S#10 ould +e taken up for commonly used eDuipment in industries such as pumps, fans, +lo ers, compressors, +oilers, etc. 7fficiency increases to the order of $(H are foreseen in most of the industrial eDuipment. Market De,elopment Mechanism including Project De,elopment ill +e taken up in the follo ing areasK 5ural agricultural su+station ith pri,ate management. Municipal = Metro ater pumping efficiency impro,ement. Programme for energy efficiency impro,ement in Go,ernment +uildings, commercial +uildings, rail ays, defense esta+lishments, etc. Besides implementing the pro,ision of the Act, a detailed Action Plan on Demand Side Management is +eing prepared. 88. Policy measures = initiati,es taken Accelerated Po er De,elopment # 5eform Programme Accelerated Po er De,elopment # 5eform Programme /APD5P0, introduced in 4e+ruary '(($ is +eing used in a structured ay in the areas of Distri+ution reforms and transition phase financing of State 7lectricity Boards undertaking reforms. The o+jecti,es in the distri+ution reform segment of the program are to achie,e $((H metering, energy audit, +etter "T=3T ratio, replacement of distri+ution transformers, 8T solutions relating to po er flo at critical points to ensure accounta+ility at all le,els. These should lead to a Dualitati,e impro,ement at the consumers end so as to raise the le,el of satisfaction +esides impro,ing re,enue reali;ation for the utilities. <) circles ha,e +een selected at present in the country /in many cases one circle is +igger than a district0 hich are +eing de,eloped as M1enter of 7:cellenceN for distri+ution reforms. The plan is to co,er all the circles in a country in a phased manner. States ha,e +een asked to form District 3e,el 1ommittees for distri+ution and generation resource planning. A comprehensi,e technical manual on preparation of projects for impro,ement in distri+ution net ork has +een +rought out. States ha,e to prepare detailed project reports for the identified circles, the progress of hich is +eing closely monitored. 8n these <) circles, efforts are on to supplement the efforts of the States for carrying out necessary impro,ements for hich teams from certain central utilities are orking in close coordination ith the States. M2As ha,e +een entered into ith the States so that funds are released +ased on the performance of clearly specified and achie,a+le milestones.

2ne Time Settlement of S7Bs dues to central undertakings Most of the S7Bs are on ,erge of financial collapse. As a result they ha,e not +een a+le to pay for the po er supplied to them. Their total outstanding dues to central po er utilities ha,e risen to more than 5s. F$,((( 1r. After the 1hief Ministers 1onference in March>($ an 7:pert Group as constituted. The recommendations of the 7:pert Group ha,e +een endorsed +y the 7mpo ered Group of 1hief Ministers and ha,e +een appro,ed +y the ?nion 1ouncil of Ministers in March '(('. Thus the recommendations ha,e +een operationalised. As per the recommendations, the outstanding dues of S7Bs to ards 1PS?s are +eing securtised +y concerned States ith the clear understanding that they ill pay their current dues. This ould help the States to clean up their +ooks and ena+le them to raise resources to fund their de,elopment schemes. 8n addition the 1entral ?tilities ould also +e a+le to meet the eDuity reDuirements and le,erage them for their e:pansion schemes. The scheme is making head ay as a su+stantial num+er of State Go,ernments ha,e consented to it in the conte:t of meeting their payment o+ligations to !TP1, the 1PS? ith the largest accumulated recei,a+les from the S7Bs and successor utilities. The States ha,e +een gi,en incenti,es to make it attracti,e for them. 7n,ironment Management Sei;ed of the current and emerging pressure, +oth local and glo+al, on the front of en,ironment management for the electricity sector, the ?nion Ministry of Po er has taken a num+er of ne initiati,es in addition to strengthening the e:isting ones. Special Purpose @ehicle has +een set up to effect compensatory forestation to facilitate e:peditious clearance from Ministry of 7n,ironment and 4orests /M2740 for ne po er projects. An M2? in this regard ith M274 is under finali;ation. An Action Plan on 1lean De,elopment Mechanism has +een appro,ed and T758 has +een asked to prepare a pipeline of projects. A 4ly Ash ?tili;ation Action Plan is proposed to +e formulated after discussions ith all stakeholders. 4acilitating Pri,ate 8n,estmentK !o ceiling on foreign eDuity participation in the po er sector. Alternati,e Payment Security Mechanism e,ol,ed to accelerate Pri,ate sector in,estment in po er sector. 4inancing of 8PPs linked to progress of reforms undertaken +y State Go,ts. 5egarding pri,ate in,estment in po er sector, there is a action plan to ensure financial closures of 8PPs and this is +eing monitored +y the 1risis 5esolution Group chaired +y the ?nion Minister for Po er and attended +y major financial institutions = Ministries and promoters of 8PPs. 4oreign Direct 8n,estment /4D80 in transmission is +eing encouraged through t o routes i.e. *oint @enture /*@0 and 8ndependent Pri,ate Transmission 1o. /8PT10 ith specific schemes ha,ing +een identified under each head. 7ncouraging 4D8 in Transmission 9 T o routes identified for encouraging pri,ate sector participation in transmission i.e. *@ and 8PT1 routes. Specific transmission lines = schemes identified for e:ecution under +oth the routes. 8nternational 1onference cum Business meets

To deli+erate on the critical issues and to enlist support and optimise in,estment in the po er sector from foreign and domestic in,estors, fi,e international conferences9 cum9+usiness meets ere held through 188, 48118 and 1PS?s of the po er sector. The areas on hich the conferences ere held includedK 8. Transmission, 7nergy Management # 1on,ergence 88. Distri+ution 888. !on fossil 4uel Generation 8@. 2ptimi;ing 7:isting capacity /5#M0 @. 4ossil 4uel Generation The conferences +rought together se,eral ideas concerning the entire range of po er de,elopment related issues. The +usiness meets sho cased the in,estment opportunity in the po er sector. The response as encouraging. As an e:ample +usiness opportunities ith ongoing +ids of 5s.$A(( crore ere offered +y !"P1 and Tehri "ydro De,elopment 1orporation/T"D10. Also pre9+id conference for Main Plant Package of !TP1 Sipat Thermal Po er Project offered +usiness orth 5s. <,((( crore. 4acilitating 1apti,e Po er 1apacity Guidelines ha,e +een issued to all the States on 1apti,e po er de,elopment. This has +een done keeping in ,ie the needs of industry, the present a,aila+ility of generating capacity including facilities for e,acuation and the gestation time for creation of additional generation capacity ith the o+jecti,e that the industry should not suffer due to shortage of po er in the o,erall interest of the economy. Standing 1ommittee on Training and De,elopment 8t has su+mitted its report on !ational Training Action Plan for the Po er Sector. Standing 1ommittee on 5esearch and De,elopment 8t constituted to dra up a perspecti,e 5esearch and De,elopment plan for the ne:t fifteen years. 5ural 7lectrification Action Plan formulated for <'((( ,illages 8t is to +e electrified +y '((E and $A((( remote ,illages to +e electrified using rene a+le sources +y '($'. 5educe the cost of deli,ered po er A 1ommittee constituted to study to reduce the cost of deli,ered po er has su+mitted its report and is under implementation. De,eloping +road political consensus on 5eforms The Meeting of the 1hief Ministers on Po er held in March '(($ helped in con,ergence of ,ie s not only on +road parameters +ut also on certain methods to +e adopted in different areas of reforms along ith indicati,e time frames. The follo up actions ha,e +een going on and despite some resistance from certain pockets, the reform agenda has +een mo,ing for ard. Structural changes ha,e +een gi,en

momentum and '' States ha,e signed M2?s under Accelerated Po er De,elopment # 5eform Programme /APD5P0 as an e:ample of political con,ergence on reforms. 1ountry ide A areness 1ampaign A Mass campaign as launched to create general a areness amongst the pu+lic on the need for reforms in po er sector. More than '((( 5oad sho s ere held in the months of 2cto+er9!o,em+er '(($ in this regard. Students, opinion makers and common consumers ere informed and sensiti;ed a+out the need for reforms, especially distri+ution reforms and checking for po er theft. A ,ery encouraging response as recei,ed from the grassroots le,el from all o,er the country. 888. Administrati,e steps undertaken Projects formulation and implementation A 1ommittee set up for financing of po er projects for capacity addition during Oth and O8th Plans. Monitoring mechanism strengthened ith setting up of Po er Projects Monitoring 1ommittee under Sp. Secy. /Po er0 for identification of projects, scheduling and monitoring the implementation. A 1oordination 1ommittee for Po er set up for close interaction amongst the related Ministries L M2P, M!7S, DA7, Deptt. of 1oal Plan for !ational Grid 4or all the generating plants likely to +e commissioned during the $( th Plan, transmission projects ha,e +een identified and in some cases are already under e:ecution. The o+jecti,e is to ensure that the inter9regional po er transmission capa+ility increases from the present le,el of FA%( M- to )(,((( M- +y year '($' and reali;e the o+jecti,es of !ational Grid. To ards the o+jecti,e of formation of !ational Grid, a num+er of inter9regional schemes ha,e +een planned for phased de,elopment. 8n order to further strengthen the interconnection +et een regions, some more schemes ha,e +een appro,ed hich are under different stages of implementation and are e:pected to +e commissioned +y '((). 3ooking into the future demand and a,aila+ility of generation resources, a Perspecti,e Transmission Plan has +een dra n up indicating the major inter9regional transmission high ays to +e de,eloped +y '($$9$'. This ill ultimately lead to the formation of a strong !ational Grid. These high ays are proposed to +e esta+lished in phases matching ith the reDuirement of inter9regional po er transfer. Action Plan for Oth plan period as formulated for 5#M of old thermal and hydro units. 5anking Study for Prioriti;ing "ydro Po er De,elopment and other Allied Measures A preliminary ranking study of )BB hydro schemes has +een prepared. These schemes, ith an aggregate installed capacity of a+out $(E,((( M-, ha,e +een prioriti;ed in all the si: 5i,er Systems of the country. This ill +e the document for +asin9 ise de,elopment of hydro capacity. The policy thrust is to impro,e the hydro9 thermal mi: so as to optimally meet the peak and +ase load reDuirements. Some

procedural impro,ements ha,e +een +rought a+out to curtail the gestation period of hydro projects and further impro,ements are under consideration. The thrust is to impro,e the hydro9thermal mi: so as to optimally meet the peak and +ase load reDuirements. Some procedural impro,ements ha,e +een +rought a+out to curtail the gestation period of hydro projects and further impro,ements are under consideration. The Preliminary 5anking Study has +een released on %th 4e+ruary '(('. The identified potential hydroelectric sites in the ,arious ri,er +asins ha,e +een prioriti;ed in the reports in the order of their attracti,eness for implementation. The ranking study ould ser,e as guide to the potential de,elopers to choose hydro schemes for in,estigations and implementation. De,elopment of mini hydro and run of ri,er projects Action initiated ith M!7S for de,elopment of mini hydro and run of ri,er projects. Po er 5eforms K 4ocus on Distri+ution 5eforms 8n the 1hief Ministers 1onference held in March '(($ all States ha,e agreed for reforms and restructuring of po er sector. De,elopment of <) Distri+ution 1ircles as 1enter of 7:cellence for distri+ution reforms. 4unds +eing pro,ided under APD5P. These centers ould act as model for replication in other districts. 4unds under APD5P, cumulati,e as till end April &(' K Sanctioned 5s. $F)% 1r. Dis+ursals 5s. $F(F 1r. $((H metering and effecti,e Management 8nformation System /M8S0 for monitoring at feeder le,el +acked up +y detailed energy audit to +ring accounta+ility into system at all le,els. Tariff rationali;ation +y S751s /'$ States ha,e set up S751s and $' ha,e issued tariff orders0. Tariff policy for 5egulators 1ommittee formed under Secretary /Po er0 ith 1hairman, 17A to orkout the policy. District 3e,el 1ommittees proposed for Distri+ution 5eforms monitoring and de,elopment of energy resources. 3etters ha,e +een sent to all 1Ms of States. T o years Action Plan is +eing chalked out for turnaround of S7Bs +y eliminating re,enue deficits. Distri+ution impro,ement plans= projects for all districts in the country 9 Technical manuals ha,e +een finali;ed and su+mitted +y 17A. 8t is also +eing con,erted into users= management manuals. A 1ommittee has +een set up to suggest strategies and measures for attracting pri,ate sector in distri+ution and dra ing up guidelines for pri,ati;ation. 8.T. ena+led solution is +eing orked out +y 1ommittee headed +y MD, 8nfosys for Model M8S for monitoring at feeders le,el and fi:ation of responsi+ility. 4acilitating Po er trading PT1 role +eing strengthened to facilitate trading of po er. operations. 8t has already started

Sustaina+le po er de,elopment Action Plan has +een finali;ed on 1DM /1lean De,elopment Mechanism0 Action Plan on 4ly Ash utili;ation is under finali;ation. 8@. 2ther measures = steps taken All !TP1 stations ha,e achie,ed 8S2 $F(($ certification e:cept for ?nchahar # Tanda, hich are in process. A committee set up in 17A for orking of 7nergy Security and 4uel policy. 8nter ministerial re,ie s +eing held for finali;ation of the report. Transparency and guidelines in hydro tenders 9 A 1ommittee formed under Shri "arish Sal,e, the Solicitor General of 8ndia for recommending guidelines for hydroelectric po er projects ,is a ,is contracting # e:ecuting procedures, to ena+le control time # cost o,errun # ensure greater transparency in contracting as ell as e:ecution.

CENTRAL ELECTRICITY AUTHORITY

CENTRAL ELECTRICITY AUTHORITY


ORGANISATION OF CEA
1. O%#!"(+!,()" The 1entral 7lectricity Authority /17A0 is a statutory organisation constituted ?nder Section )/$0 of the 7lectricity /Supply0 Act, $BFA. 8t as esta+lished as a part9time Body in the year $B%$ and made a full time +ody in $BE%. 8t is an attached office of Ministry of Po er, Go,ernment of 8ndia. 8n all technical, financial and economic matters, the Ministry of Po er is assisted By 17A. 17A is responsi+le for technical co9ordination and super,ision of programmes and is also entrusted ith a num+er of statutory functions. 17A is headed +y a 1hairman, ho is also 7:9officio Secretary to the Go,ernment of 8ndia and has si: full9time Mem+ers, ho are of the rank of 7:9officio Additional Secretary to the Go,ernment of 8ndia. These are P Mem+er/Thermal0, Mem+er/"ydro0, Mem+er /7conomic # 1ommercial0, Mem+er /Po er System0, Memer /Planning0 and Mem+er /Grid,2peration # Distri+ution0. 17A has fi,e Part9time Mem+ers, Mem+er /3egal0 +eing one of them. 1hairman, 17A is assisted +y Secretary, 17A in the discharge of 17A&s statutory functions. The +road functional areas of as underK9 CA!(%>!" "ead of the organisation P 2,erall de,elopment of Po er Sector in the country. M$>@$% P;!""("#& 4ormulation of national po er policiesL integrated resource planningL optimisation of resource utili;ationL formulation of short, medium # long term po er plansL long and short term demand forecasting # sensiti,ity studies, material and manpo er planningL coal, oil # gas linkages to po er projectsL sur,eys for po er demand gro thL identification and testing of co9lateral parameters for economic model for demand forecastingL collection, compilation and pu+lication of statistics of Po er SectorL securitisation of resources=fuel a,aila+ility and fuel efficiency ith the support of emerging technologiesL modernisation of project management, concepts of skill de,elopment, pro9acti,e technology forecasting approachesL research # de,elopment in Po er Sector and co9ordination ith multiple agencies in,ol,ed in 5esearch # De,elopment acti,ities, etc. M$>@$% TA$%>!;& 2,erall thermal po er de,elopment in the country, updating, de,elopment and 7,aluation of thermal technologiesL design # engineering of thermal projectsL Duality Assurance standards and planL preparation of model documents and ork of 1hairman, Mem+ers and the Secretary are

standardsL technical Appraisal and firming of inputs of thermal projectsL in,estigation, construction # sta+li;ation,Monitoring of thermal projects and suggesting remedial measures to pro+lems in,ol,ed, 5eno,ation, modernisation and life e:tension programmesL energy conser,ationL en,ironmental Aspects of thermal projects etc. M$>@$% H<.%)& 2,erall hydro po er de,elopment in the countryL technical appraisal of hydro9 7lectric projectsL integrated plannning for utili;ation of ater resourcesL assessment of "ydro potentialL assistance to States on in,estigation and project report preparationL1onstruction # in,estigation monitoring of hydro projects and suggesting remedial Measures to pro+lems in,ol,edL updating, de,elopment # e,aluation of hydro TechnologiesL en,ironmental aspects of hydro projectsL Duality assurance plans # Standardisation, design and engineering of hydro projectsL reno,ation, modernisation # ?prating of hydro stationsL co9operation ith neigh+ouring countries of !epal, Bhutan And Myanmar for de,elopment of ater resources for mutual +enefits etc. M$>@$% P)B$% S<+,$>+& Planning and de,elopment of Transmission and Distri+ution facilities consistent -ith national po er plansL monitoring of rural electrificationL Transmission # Distri+ution loss reductionL optimistion of distri+ution net orkL appraisal of Transmission projectsL transmission technology de,elopmentL design # engineeringLStandardisaion and preparation of model documentL reno,ation and modernisation of Transmission scehemesL construction monitoring of transmission projectsL ork relating to Accelerated Po er De,elopment # 5eforms Progrmme /APD5P0 including $((H Metering, energy accounting, e,aluation of +enefits, Quality 1ontrol, etc. M$>@$% G%(.* O?$%!,()" 5 D(+,%(@-,()"& 4ormulation of policies for safe, secure and economic operational of regional gridsL8ntegrated operation, control and co9ordination of fi,e regional grids through 5egional 7lectricity BoardsL monitoring of deli,ery of shares from 1entral Sector projectsL intra And inter9regional e:change of po erL emergency po er assistanceL energy accounting 2n daily and monthly +asisL load generation +alance and grid distur+ance studiesL grid 1odeL tariff principles of +ulk generation # transmission, matters relating to Telecomunication in Po er Sector, telecommunication data acDuisition and soft are SupportL operation monitoring and performance re,ie of thermal po er stationsL co92rdination of fuel oil=liDuid fuel suppliesL coal Duantity and Duality controlL updating of Maintenance proceduresL implementation of M=s. 711 8nc. recommendation of +ulk po er and a,aila+ility +ased tariffL generation data collectionL performance analysisL Maintenance monitoring etc. M$>@$% E=)")>(= 5 C)>>$%=(!;&

7conomic e,aluation of po er policies and projectsL appraisal of tariff, financial Packages, financial parameters, 8nterest. During 1onstruction # completed costL7:amination of +ulk po er tariff structure, performance of S7BsL scrutiny for import Duty e:emptionL certification and foreign e:change releaseL co9ordination for e:ternally Aided schemesL e:amination of Po er Purchase Agreements, ad,ice on legal mattersL8nspection of e:isting electrical installations in ?nion Territories and 1entral Go,ernment DepartmentsL in,estigation of accidents on electrical installations and suggesting 5emedial measures for their minimisation nd pre,ention. 1.1 P!%,-,(>$ M$>@$%+ )/ CEA

$. Dr. S.S.1hahar, Additional 3egal Ad,isor, Ministry of 3a , *ustice # 1ompany Affairs P Mem+er /3egal0. '. Shri A.1. Gupta, 1ommissioner/8ndus0, Ministry of -ater 5esources. ). 4orests. Shri @. 5ajagopalan, *oint Secretary, Ministry of 7n,ironment #

F. Shri Shi,raj Singh, *oint Secretary/5efineries0, Ministry of Petroleum # !atural Gas. %. Shri T.6. Ghosh, Director, Ministry of 1oal. S$=%$,!%< The Secretary, 17A appointed +y the Go,ernment, assists in the discharge of 17A&s statutory functions. The Secretary also assists the 1hairman in all matters Pertaining to administration and technical matters including techno9 economic appraisal # conrurrence of po er projects and "uman 5esource De,elopment etc. 2. F-"=,()"+ )/ CEA The Authority is generally to e:ercise such functions and perform such duties and Act in such a manner as the 1entral Go,ernment may prescri+e under the 5ules framed ?nder Section FB/$0 of the 7lectricity /Supply0 Act, $BFA or +y issue of ritten Directions jin matters of policy in,ol,ing pu+lic interest under Section FA/$0 of the said Act. ?nder Section )/$0 of Act, 17A is particularly charged ith the follo ing functionsK /i0 To de,elop a sound, adeDuate and uniform national po er policy, formulate short9term and perspecti,e plans for po er de,elopment and co9ordinate the acti,ities of planning agencies in relation to the control and uitlisation of national po er recouresL /ii0 To act as ar+itrators in matters arising +et een the State Go,t. or the Board and a 3icence or other person as pro,ided in the Act.

/iii0To collect and record the data concerning generation, distri+ution and utilisation of po er and carry out studies relating to cost, efficiency, losses, +enefits and such like mattersL /i,0 To make pu+lic from time to time information secured under this Act and to Pro,ide for the pu+lication of reports and in,estigationsL /,0 To ad,ise any State Go,t., Board, Generating 1ompany or any other agency 7ngaged in generation or supply of electricity on such matters as ill ena+le such Go,t., Board, Generating 1ompany or agency to operate and maintain the po er System under its o nership or control in an impro,ed manner and here System under its o nership or control in an impro,ed manner and here !ecessary in co9ordination j ith any other Go,ernment, Board, Generating 1ompany or other agency o ing or ha,ing the control of another po er systemL /,i0 To promote and assist in the timely completion of schemes sanctioned under 1hapter @ of the Act. /,ii0 To make arrangements for ad,ancing the skill of persons in the generation and Supply of electricityL /,iii0 To carry out or make arrangements, for any in,estigation for the purpose of Generating or transmitting electricityL /i:0 To promote research in matters affecting the generation, transmission and supply of electricityL /:0 To ad,ise the 1entral Go,t. jon any matter jon hich its ad,ice is sought or make5ecommendation to that Go,t. on any matter if, in the opinion of the Authority,The recommendation ould help in impro,ing the generation, distri+ution and The utilisation of electricityL and

/:i0 To discharge such other functions as may +e entrusted to it or under any other3a . ?nder the pro,isions of 7lectricity /Supply0 Act, $BFA, the 1entral Go,t. has 4urther added fe more functions to the 1entral 7lectricity Authority. These areK 9 9 1o9ordination of research and de,elopment in the po er generation fieldL 7,aluation of financial performance of the S7Bs constituted under Section % and ?ndertaking of studies concerning the economic and commercial aspects of the Po er industry as ell as analysis of tariff structure in the po er industryL Techno9econonmic appraisal of po er projectsL Promotion of inter9State and *oint Sector po er projects.

9 9

Apart from the a+o,e functions pro,ided under the 7lectricity /Supply0 Act, $BFA,17A also undertakes design and engineering of po er projects ith a ,ie

to de,elop in9"ouse technical kno 9ho and also to assist the State 7lectricity Boards, generating 1ompanies # State authorities reDuiring such assistance under Section )/$0/,0 of the 7lectricity /Supply0 Act, $BFA. 8n addition, the Secretariat for 1entral 7lectricity Board /17B0 and safety inspection of centrally o ned=controlled electrical installations as per8ndian 7lectricity 5ules, $B%< is also ,ested ith 17A. As per studies carried out +y 1entral Authority of 8ndia /17A0 during $BEA9AE, the economically e:ploita+le hydro potential from major=medium schemes in the country ahs +een assessed as AF(FF M- at <(H load factor corresponding to an Dappro:imate installed capacity of $,%(,((( M- from AF% schemes. 2ut of AF% schemes identified +y 17A, a+out 'AA schemes ith an agreegate installed capacity of a+out F'((( M- are either under operation=implementation or appro,ed +y 17A. 4urther, a+out $<F schemes ha,ing an agreegate installed capacity of ')(( M- each ha,ing indi,idual installed capacity of '% M- # less, stand transferred to M!7S for de,elopment. Thus a+out F(( schemes ha,ing total likely installed capacity of a+out $((((( M- are yet to +e taken up for their systematic de,elopment. A ,ision paper highlighting comprehensi,e approach for de,elopment of entire hydropo er potential in the country as prepared +y 17A # su+mitted to the Go,erntment of 8ndia during March '(($. the ,ision paper gi,es a road map for e:piditing the hydro de,elopment so as to harness the complete assessed potential +y '('%9'<. it has +een assessed that to de,elop the remaining entire hydro potential, a+out 5s.%,((,((( crores ould +e reDuired +ased on the present day cost # all sur,ey # in,estigations ould need to +e completed +y '($<9$E for hich additional amount of 5s.%(((crores mat +e reDuired. -ith an o+jecti,e of taking up the hydro de,elopment in phased=systematic manner, 17A undertook an e:ercise to carry out ranking studyof unde,eloped hydro sites so as to ha,e a shelf of prioritised hydro schemes. The ranking study has +een di,ided into t o stages. Stage98, preliminary ranking study # stage988, detailed ranking study. ?nder stage98, the inter9se9prioritisation of hydro schemes ha,e +een carried out +ased on the desk top studies # eightage criteria for ,arious aspects in,ol,ed in the de,elopment of hydro projects. The eightage criteria adopted +y 17A for preliminary ranking study as discussed in detailed at a consultation forum in,ol,ing ,arious organisations from different spheres i.e. technical, commercial, financial insitutions, confederations etc. At first instance, alnd use aspects for 8ndus Basin ha,e +een addressed +ased on satellite maps o+tained from !5SA # inputs o+tained from state authorities. The ranking study ould +e re,ie ed after o+taining satellite imageries=maps from !5SA for other +asins too. The rpesent ranking may undergo some change +ased on the inputs emerging from land use aspects of the schemes.

The preliminary ranking study ould form a +ase for undertaking the detailed ranking study. Based on the outcome of preliminary ranking study, detailed ranking study ould +e carried out for all the +asins considering su+mergence, land use aspects, +road geological # economic considerations. After completion of the detailed ranking study, preparation of pre9feasi+ility reports could +e taken up +y the concerned authorities.

HYDRO POTENTIAL 5 STATUS OF DE4ELOPENT


As per the re9assessment studies carried out +y 17A during $BEA9AE, hydro potential of AF(FF M- at <(# load factorfrom AF% schemes ha,e +een identified. 2ut of this potential, only $<.EH ha,e +een de,eloped so far # another <.)H are under ,arious stages of de,elopment. Thus the +alance hydro potential of the order of a+out EEH is yet to +e harnessed. 2ut of AF% schemes identified +y 17A, at present, 'AA "7 schemes ith an agreegate installed capacity of a+out A'((( M- are either under operation=implementation or appro,ed +y 17A. The +alance schemes include $<F schemeseach of hich ha,ing an installed capacity of '% M- or less, de,elopment of hich stands transferred to M!7S. Total installed capacity of such schemes is a+out ')(( M-. 4urther studies ere therefore proposed to +e carried out for a+out F(( schemes ha,ing total likely installed capacity of a+out $((((( M-.

OBJECTI4E OF THE RANKING STUDY


4or de,elopment of remeining capacity of a+out $((((( M- out of $%(((( Ma,aila+le hydro po er capacity in the country in the phased manner # to ha,e a shelf of prioritised schemes for further in,astigation # implementation, it has +een proposed to carry out ranking studies for the +asin ise +alance schemes.

APPROACH FOR SYSTEMATIC HYDRO POTENTIAL


PHASE I: 4ISION PAPER

DE4ELOPMENT

OF

A ,ision paper highlighting comprehensi,e approach for de,elopment of $%(((( M- of hydro po er corresponding to the assessed potential of AF(FF M- as prepared +y 17A # su+mitted to the Ministry of Po er in March '(($. The ,ision paper outlines the approach # pro,ides a road map for de,elopment of the +alance untapped potential of the country +y the year '('%9'<. the paper analysed an anticipated demand supply scenario, likely ot pre,ail in the country +y making use of the results of long term perspecti,e plan studies carried out +y 17A. The cost of de,elopment of the remaining untapped potential in the country has +een estimated as a+out 5s.%((((( crores hile reDuirement of funds +y '($<9$E for carryi+g out SH8 acti,ities ould +e of the order of 5s. %((( crores. 8t

is assessed that the hydro share in the system )'H +y '('%9'<.

ould gradually impro,e to a+out

PHASE II: PRELIMINARY RANKING STUDY The prioritusation of the schemes yet to +e de,eloped +ased on the a,aila+le data # eightage criteria for ,arious aspects in,ol,ed in de,elopment of a hydro project has +een done under this phase. This e:ercise ould pro,ide inter9se9 prioritisation of schemes to +e undertaken for implementation in a systematic manner. This ill form a +ase for detailed ranking study # later on, for preparation of pre9feasi+ility reportrs. 5anking study is generally +ased on desk studies of all secondary tropographical # hydrological data. 4or this porpuse, latest topo sheets ha,e +een o+tained from sur,ey of 8ndia. Sattellite maps from !5SA # inputs frm sate authorities ha,e also +een o+tained from 8ndus Basin # for +alance Basins, these details ould +e o+tained # incorporated at the time of detailed ranking. Ten major aspects pertaining to de,elopment of the identified projects, hich play ,ital role in the implementation of the hydro projects, ha,e +een adopted in the criteria considered for ranking study. 4or each of the criteria, certain marks ith eightage ranging from minimum of < to ma:imumof $% has +een alloted to its applica+ility to each indi,idul project. These aspects are 5#5 aspects, 8nternational aspects, interstate aspects, potential of schemes etc. Depending upon the scores=marks alloted, the schemes ha,e +een catagorised into A, B, 1, D, 7 as +elo . C,!#)%</G%!.$ T),!; S=)%$ M!%E+& A B 1 D 7 A( # a+o,e <( to EB F( to %B '( to )B ?p to $B

PHASE III: DETAILED RANKING STUDY Based on preliminary ranking study, furhter stidies ould +e carried out for schemes considering their su+mergence, land use aspects, geological aspects # so on so as to arri,e at a detailed=final ranking. After completion of the detailed ranking studies, the pre9feasi+ility reports /P45s0 of selected schemes could +e prepared +y concerned authorities.

CONSULTATION FORUM

A meeting as organised on $'=(B='(($ in the form of consultation forum to discuss the methodology adopted # eightage gi,en to different aspects of the hydro de,elopmet for the ranking studies undertaken +y 17A. The organisations from different spheres ranging from technical organisation like 1-1, GS8, S28, !"P1 etc.to financial institution like ADB, 81818 etc. # associations like P"D118, 188 as ell as ,arious concerned ministries=department like M274, M2P, M7A participated in the discussions. 8t as concluded at the end of the meeting that the eihjtage criteria taken preliminary ranking study +y 17A co,er almost all the aspects of hydro de,elopment # are appropriate for studies at this stage.

ABOUT THE REPORT


The report on ranking study has +een di,ided into se,en ,olumes. @olume 8 co,ers the e:ecuti,e summary, general report incorporating physiographic features of 8ndia, major ri,er systems, hydro potential # its status of de,elopment, synopsis of ,ision paper, methodology=criteria adopted for ranking, +asin ise final gradation of schemes etc. A map sho ing all si: ri,er ayatems of the country has also +een incorporated in this ,olume. @olume 88 to @88 co,er ranking studies for 8ndus Basin, Ganga Basin, Brahmputra Basin, -est 4lo ing 5i,er System # 1entral 8ndian 5i,er System respecti,ely. 7ach ,olume incorporates information a+out potential of +asin # its de,elopment, schemes identified, present status, +alance schemes to +e de,eloped # their ranks according to the eightage criteria. The report analyses the +asin as a hole # incorporates conclusion # recommendations for each +asin.

PHYSIOGRAPHIC FEATURES OF INDIA


Physiographically 8ndiacan +e di,ided into three major di,isions namely "imalayas # their associated young fold mountains, the ancient +lock of Peninsular 8ndia # the 8ndo9Gangetic plains lyieng +et een the t o. The three regions are ,astly different in geological history # in character of their terrain. 2ut of these three di,isions, the "imalayan range comprising Greater "imalayas, the 3esser or Middle "imalayas # the Shi,alic range posses ,ast hydro potential. Greater "imalayas +eing inaccessi+le pro,ide little opprtunity to harness hydro potential +ut they do act as reser,oirs of ater of all the ri,ers of this range. This lea,es the other t o ranges ,i;. 3esser "imalayas # Shi,alc as potential source for de,elopoment of hydro electric potential.

MAJOR RI4ER SYSTEMS


4or the purpose of hydro electric potential sur,ey, the country has +een clessified into si: major ri,er systems mainly 8ndus, Brahmaputra, Ganga, 1entral 8ndian 5i,er System,7ast 4lo ing 5i,er System # -est 4lo ing 5i,er System. These

ri,er systems ha,e +een further di,ided into FB Basins. The detail of these ri,er systems=+asins are gi,en +elo K INDUS BASIN The Great 8ndus Basin draining areas in the states of *#6, "imachal Pradesh # Punja+ is one of the major +asins of the country. The Great 8ndus Basins comprises si: malor ri,ers namely 8ndus, *helum, 1hena+, Sutlej, 5a,i # Beas. 5ising in Ti+et at an eli,ation R%$A'm +ehind the mountains of Great "imalayas, 8ndus ri,er tra,erses a total of a+out 'AA( 6m. 2f hich a+out $$$F 6m. lies in 8ndia. The total area itercepted +y these < major ri,ers is a+out $$(< lakh sD. 6ms. out of hich more than $(E lakh sD. 6ms. lies in 8ndian territory. GANGA BASIN The ganga +asi+ ith a+out $=Frht of the total geographic area fo the country has the total drainage area of a+out $(.% lakh sD. 6ms. out of hich a+out AA.E lakh sD. 6ms. lies in 8ndia the +asin co,ers ares in ?.P, Punja+, "ryana, ".P, 5ajasthan, M.P, Bihar, -.B # Delhi. The +asin comprises ri,ers like ?pper Ganga, ?pper Jamuna, 3o er Jmuna, 1ham+al, Sarda9Gomti9Ghagra, Sone, Bet a9Sind, 6osi9Gandak9Mahananda, 3o er Ganga # Damodar. BRAHMAPUTRA BASIN The Great Brahmaputra +asin ith a total drainage area of a+out %(%F lakh sD. 6ms. of hich a+out '.<% lakh sD. 6ms. lies in 8ndia, co,ers the states of Arunachal Pradesh, Assam, Meghalaya, Manipur, Tripura, Mi;oram, !agaland, Sikkim # a su+stantial part of -est Bengal. The Great Brahmaputra +asin, including Barak # other South flo ing ri,ers of !orth 7astern states, has +een di,ided into B su+9+asins. The ri,ers in this +asins are ?pper Brahmaputtra, Teesta, Su+ansari, 6ameng, 6alang, Dihang9Di+ang, 3uhit, 3o er Brahmaputra, Barak # neigh+oring ri,er system. CENTRAL INDIAN RI4ER CIR& SYSTEM The 1entral 8ndian ri,er system in,ol,es a total of $(% ri,ers ith a total ri,er course of a+out $BEA( 6ms. This system ith adrainage area of a+out E.< lakh sD. 6ms. contains A major ri,er +asins namely !armada, Tapi, Su+ernrekha, Brahmani9Baitarni, Mahanadi, Sa+armati, Mahi # 3uni9Banas # other ri,ers of 5ajasthan # Gujrat. 0EST FLO0ING RI4ER 0FR& SYSTEM The -est 4lo ing 5i,er system of south has a length of a+out $%F( 6ms. ith idth ,arying from a minimum of F( 6ms. to a ma:imum of $)( 6ms. # co,ers almost hole of 6erala. Goa, ?nion Territory of Daman # Diu, parts of Tamil !adu, 6arnataka, Gujrat # 6onkan region of Maharashtra state. This +asin comprises of ri,ers like Minodhola9Damanganga, @aitarna9Sa,itri,

@ashishta9Tillari, Mand,i9Shara,athi, @arahi96uttiyadi, Baypore9Periyar # Pam+a9Pariliyar. EAST FLO0ING RI4ER SYSTEM The east 4lo ing 5i,er system of South constitutes the largest ri,er system of the country draining a total catchment of a+out B lakh sD. 6ms. # comprises major interstate +asins of Goda,ari, 6rishna, 1au,ery # other ri,ers. 8n this ri,er systems, these three ri,ers account for a major part of a+out E)H of the entire drainage area. This ri,er system consists f ri,ers +et een Mahanadi # Goda,ari, Goda,ari, ri,ers +et een Goda,ari # 6rishna, 6rishna, ri,ers +et een 6rishna # Penner, Penner, ri,ers +et een Penner # 1au,ery, 1aau,ery # ri,ers +eet een 1au,ery # kannyakumari.

HYDRO POTENTIAL OF INDIA 5 ITS ASSESSMENT


FIRST SUR4EY 1962-69& The first systematic # comprehensi,e study to assess the hydro electric resources in the country as undertakrn during the period $B%)9$B%B +y the po er ing of the erst hle central ater # po er commision on the +asis of pre,ailing technology of hydro construction # the constraints imposed +y tropographical # hydrological considerations etc. These studies placed the economical utili;a+le hydro po er optential of the country at F'((( M- at <(H load factor. RE-ASSESSMENT STUDIES The re9asessment studies of the hydro electric potential of the country, completed +y central electricity authority in $BAE, ha,e placed the hydro po er potential at AF(FF M- at <(H load factor. A total of AF% hydro electric schemes ha,e +een identified in the ,arious +asins hich ill yield FF' +illion units of electricity. -ith seasonal energy, the total energy potential is assessed to +e <(( +illion units per year. 8n addition, the reassessment studies ha,e also identified %< sites for Pumped Storage Schemes /PSS0 ith total installation of a+out BF,((( M-. The hydro potential of AF(FF M- at <(H load factor hen fully de,eloped ould result in an installed capacity of o,er $,%(,((( M- on the +asis of pro+a+le a,erage load factor. The Great 8ndus, the Ganga # the Brahmaputra ith their innumera+le tri+uteries originating from the "imalayas costitute a+out E(H of the country&s assessed hydro po er potential. The peninsular plateau, flanked on one side +y the eastern ghats # on the other side +y the estern ghats is a receptacle of enourmous hydro po er. ASESSMENT OF SMALL HYDRO POTENTIAL 8n addition to potential of medium # major hydro schemes, a si;a+le potential also e:ists for de,elopment of micro, mini # small hydro schemes on re,ulets # canal drops. A systematic study for the de,elopment of small hydro potential as

undertaken +y 17A during $BAE # completed during *une,$BB<. As per this assessment,$%$' small hydro electric schemes ha,ing agreegate installed capacity of a+o,e <EA' M- on canal falls=ri,ers ha,e +een identified.

PRESENT STATUS OF HYDRO DE4ELOPOMENT


2n all 8ndia +asis, as on ($=(B='(($, the hydro electric schemes in operation accounts for only $<.EH # those under e:ecution for <.)H of the total potential. Thus the +ulk of the potential remains yet to +e de,eloped. The ma:imum e:ploitation has +een achie,ed in est flo ing ri,ers of South 8ndia at %B.BFH # the least de,elopment is in respect of Brahmaputra +asin at $.%FH though this +asin has ma:imum potential. 2ut of AF% schemes identified +y 17A in reassessment studies, at present, 'AA hydro schemes ith an agreegate installed capacity of F'((( M- are either under operation=implementation or cleared +y 17A. The +alance schemes include a+out $<F schemes each of hich ha,ing an installed capacity of '% M- or less, de,elopment of each stands transferred to Ministry of !on91on,entional 7nergy sources. Total installed capacity of such schemes is a+out ')(( M-. Thus a+out F(( schemes ha,ing total likely installed capacity of a+out $,((,((( M- are yet to +e considered for de,elopment.

STRATEGY FOR DE4ELOPMENT OF BALANCE HYDRO POTENTIAL


8t is proposed to take up the +alance F(( schemes for systematic de,elopment of remaining capacity of a+out $,((,((( M- out of hich $,%(,((( M- are a,aila+le hydro po er capacity in the country in the phased manner. PHASE I- 4ISION PAPER A ,ision paper highlighting comprehensi,e approach for de,elopment of $,%(,((( M- of hydro po er corresponding to the assessed potential of AF(FF M- as prepared +y 17A # su+mitted to Ministry of P er during March '(($. this gi,es a road map for e:piditing hydro de,elopment so as to harness total potential +y '('%9'<. PHASE II- PRELIMINARY RANKING STUDY The prioriti;ation of the schemes yet to +e de,eloped +ased on the a,aila+le data # eightage criteria for ,arious aspects in,ol,ed in de,elopment of a hydro project has +een done under this phase. This ould pro,ide inter9se9 prioritisationof schemes to +e undertaken for implementation in a syatematic manner. 5anking study has +een made generally +ased on desk studies of all secondary topographical # hydrological data. 4or this purpose, latest topo sheets ha,e +een o+tained from Sur,ey of 8ndia. 3and use aspects +ased on the Satellite maps o+tained from !5SA # inputs from stste authoritiesha,e also +een addressed for 8ndus Basin at first instance. This study ill form a +ase for detailed ranking study # later on, for preparation of pre9feasi+ility reports.

PHASE III- DETAILED RANKING STUDY Based on the preliminary ranking study, further studies ould +e carried out for schemes considering land use aspects, geological aspects, cost estimates, tentati,e tarrif, etc.so as to arri,e at detailed or final ranking of the schemes for all the +asins. So finally e can say that +ased on the preliminary ranking study, a+out F(( schemes ith an agreegate installed capacity of a+out $,(E,((( M- ha,e +een prioritised in all the < 5i,er Systems of the country. 2ut of this, BA schemes ith pro+a+le installed capacity of $%<%( M- fall under MAN category, 'FE schemes ith pro+a+le installed capacity of <BA%( M- under MBN category # %F schemes ith pro+a+le installed capacity of '$F'( M- under M1N

HISTORICAL PERSPECTIVE & CURRENT STRUCTURE OF THE COMPANY

HISTORICAL PERSPECTIVE & CURRENT STRUCTURE OF THE COMPANY


DESIGN TOMORRO0FS SOLUTIONS ENERGY 5TRANSPORT

8mpro,ing conditions for millions of people orld ide is the mission A3ST2M has set itself. -ith this challenge in mind, the company is de,eloping energy # transport infrastructure for tomorro , dra ing from its ealth of technological e:pertise. The electrical energy industry reDuires ne # inno,ati,e solutions to manage increasingly comple: net orks # generate cleaner, more fle:i+le # more cost effecti,e energy. A3ST2M is de,eloping ser,ices that meet these ne needs. The huge gro th of cities, coupled ith rising needs for mo+ility are +ehind ne market demands for impro,ed transport solutions.A3ST2M has already contri+uted e:tensi,ely to the rene al of transport systems # prides itself on understanding# anticipating cities # passenger e:pectationsL accessi+ility, comfort, speed # safety.

GLOBAL SPECIALIST INFRASTRUCTURE

IN

ENERGY

TRANSPORT

A3ST2M is a glo+al specialist in energy # transport infrastructure. The company ser,es the energy market through its acti,ities in the field of po er generation, po er transmission # distri+ution, po er con,ersion # electrical contracting # the transport market through it&s acti,ities in rail # marine. A3ST2M offer it&s customers a complete range of inno,ati,e componenets, systems # ser,ice con,ering design # manufacture as ell as commissioning # long term maintenance # has uniDue e:pertise in systems integration, management of turnkey projects # application of ad,anc,ed technologies.

A GLOBAL COMPANY
DISTRIBUTION OF SALES
AFRICA, MIDDLE EAST ASIA PACIFIC NORTH AMERICA SOUTH & CENTRAL AMERICA REST OF EUROPE GERMANY UK FRANCE

4ollo ing the full integration of the po er generation acti,ities, A3ST2M today has annual sales in e:ce:: of G'' +illion # employes more than than $,F(,((( people in o,er E( countries. The company is listed on the Paris, 3ondon # !e Jork stock e:changes.

PO0ER : THE GLOBAL FULL SER4ICE PRO4IDER


To strengthen it&s position as a leading player in the po er generation market, A3ST2M reDuired in May '((( ABB&s %(H share in their recently formed joint company, no renamed A3ST2M Po er, a ne A3ST2M sector. "a,ing supplied '(H of the orld&s total installed po er generation capacity, A3ST2M is one of the orld&s leading suppliers of turnkey po er plents, all types of tur+ines / gas, steam, hydro 0, generators, +oilers, electrical control systems, en,ironmental protection systems as ell as a complete range of ser,ices, including plant modernisation # long term operation # maintenance, project de,elopment # financing. As the full ser,ice pro,ider in po er generation, A3ST2M offers an e:tensi,e range of competiti,e products # ser,ices hich also set leading standards in

en,ironmental impact. Through increased 5#D in,estment in ne # e:isting product de,elopment, A3SJ2M contineus to pro,ide customers ith the inno,ati,e solutions they need to remain competiti,e.

TRANSMISSION 5 DISTRIBUTION
2ne of the orld leaders in po er transmission # distri+ution, A3ST2M is present at all stages in the supply chain of electricity. 4rom the po er plant to the end user, A3ST2M offers the idest # most relia+le range of products # ser,ices in the market. 8t&s po er deli,ery systems are designed to meet the reDuirements of utilities, industries, local authorities # infrastructure companies. At the lesding stage of research, A3ST2M de,elops tomorro &s ser,ices such as 7nergy !et ork Management # solution in harmony ith the en,ironment.

TRANSPORT
Populations are gro ing # cities are e:panding throughout the orld. 8n this conte:t, mo+ility is a key factor in economic gro th # d,elopment. A3ST2M contri+utes greatly to this mo+ility +y pro,iding a full range of rail solutions. Since the acDuisition of a major share of 4iat 4erro,iaria, the company has +ecome one of the rail industry&s +iggest supplier of products, ser,ices # systems, ithin an $AH market share orld ide in the domains in hich it is acti,e. The company is reno ned for it&s comprehensi,e range of state9of9the9art rolling stock, including TG@&s # high speed tilting trains for inter city operations, tram ays # metros of ur+an transit, # locomoti,e # freight agons. 8t also pro,ides train control systems, train life management ser,ices, railroad maintenance # turnkey or full concession transport system solutions. A3ST2M has +een a+le to anticipate orld trends # offer it&s customers inno,ati,e solution at the lo est cost, largely +y de,eloping # applying it&s uniDue concept of modularity, optic design, hich makes the most of standardi;ation # customi;ation.

MARINE
The cruise market has taken off in recent years. -ith an order +ook hich has reached record le,els, A3ST2M ahs +ecome the orld leader in cruise ship +uilding , ith ))H f the market. The company +uild ship ith high added ,alue their performance, relia+ility # spedd are constantly impro,ing hile increasingly respecting the en,ironment. A3ST2M&s e:pertise is +ased on inno,ation, its keystone is control o,er construction costs # lead times.

CONTRACTING
A3ST2M is the 7urean leader in systems integration, associated ser,ices, ellectrical # technical intallations applied to energy, transport # communication infrastructures, process industries # +uildings. -ith e:pertise in high # lo ,oltage applications, automated systems, mechanical applications, as ell as air conditioning engineering, ater systems, communication net orks # intigration of ne technologies, A3ST2M pro,ides high performance solutions adapted to the specific needs of each client, hether for installation, maintenance # glo+al ser,ice.

PO0ER CON4ERSION
A3ST2M is an e:pert in con,erting electricity into usea+le energy. 8t markets comprehensi,e solutions # associated ser,ices for the automated running of manufacturing processes ith a range of high performance products, motors. Dri,es, generators # po er electronic eDuipment.

GLOBAL SERCICE COMMITMENT


A3ST2M po er hydro understands the importance of +eing capa+le # a,aila+le at all times. 6eeping the plant up # renning at peak performance reDuires a ser,ice team that is fully commited. The key factor is the a,aila+ility of the right people ho are responsi,e, solution oriented # capa+le of a total plant approach.

RANGE OF SER4ICES
There is a general trend among po er producers to allo suppliers to take increased responsi+ility for ser,ice # maintainance.3AST2M po er is ell suited in this area # has de,eloped specific packages for hydroop er plants +asd upon its e:tensi,e e:perience. These packages may +e grouped # tailored made to pro,ide total solutions that meet your reDuirements. M!(",!("!"=$ +-??)%, Breakdo n support Technical support 1ustomer support line Spare parts O5M ?%)=$++ (>?%)'$>$",+ Training

Maintenance engineering 5emote # implimantation

A'!(;!@(;(,< /)=-+ ?!=E!#$ 3ifetime e:tensions 1ondition monitoring 4ull relia+ility package L)"# ,$%> +$%'(=$ !#%$$>$",+ Planneed maintenance Total maintenance 4ull 2#M

TAILOR MADE SOLUTIONS


A3ST2M can pro,ide tailor made ser,ice solutions from training, condition monitoring, maintenance engineering support # similar solutions up to total maintenance outsourcing # full 2#M.

LOCAL PRESENCE
A3ST2M po r has a total of ') hydro +usiness units located aroud the orld that are +acked up +y E( A3ST2M po er se,ice centres. This allo s Duick # proffesional response to customer needs.

HYDRO PO0ER PLANT REFURBISHMENT- THE BUSINESS APPROACH


MAJOR RENE0ABLE SOURCE
"ydropo er is a major energy source # it accounts for '(H of the electricity production of the planet. 8n additio, hydropo er is the most significant energy source. 8t is clean, easy to operate, efficient, fle:i+le # stora+le.

LARGE AMORTISED INSYALLED BASED


"ydropo er plants are long lasting facilitiesK it is not uncommon to find hydropo er plants operating far +eyond %( years. The orld hydro installed +ase is more than E%( G- # includes a large population of plants o,er )% years that ha,e not +een significantly refur+ished.

A3ST2M po er has taken a large share in the orld hydropo er de,elopment. -e ha,e installed eDuipment in circa F,<(( htdropo er plants totalling ''( G-. Since the start of generation e support our customers for the maintanence # refur+ishmant of their eDuipment.

PRI4ATISATION* DEREGULATION
"o e,er, times are changing. 3ike ith the entire electricity generation sector, the hydropo er market is under increasing competiti,e pressureK lo prices, deeregulated market, electricity tariffs, a,aila+ility, complaince ith ne regulations, net ork sta+ility, health # safety # increased profita+ility.

GRO0TH OF RENE0ABLE ENERGY


8s there a future for aged hydropo er plants in this ne en,ironmentS A3ST2M po er&s ans er is yes. The potential for far more hydropo er production already e:ists ithout +uilding ne plants. The ageing hydropo er plants represent an important potential for gro th of hydroelectricity generation hich is a large source of rene a+le # emission free energy.

CONDITION ASSIGNMENT 5 4ALUE ANALYSIS


5efur+ishment is the ork of a team. Based on the guidelines set +y the customer, a team including the customer&s plant engeneers # A3ST2M po er specialists carry out a ,alue analysis of the hydropo er plant. Main items in,ol,ed areK Penstocks # ,al,es, tur+ines # go,erners, generators, e:citation system, ,oltage regulators, control # monitoring systems, electrucal # mechanical au:iliaries, outgoing su+station # ca+ling. The ,alue analysis takes into accout the customer&s production strategy # 2#M philosophy asa ell as the la s # regulations. The technical condition assessment of the plant shall +e complemented +y an operating # +reakdo n costs re,ie .

TOTALLY OPTIMISED SOLUTION


8n colla+oration ith the customer, a schedule of ork is defined # the corresponding costs are e,aluated. The team ill then prepare a comprehensi,e optimised refur+ishment proposal outlining hat is north hile to impro,e, hoe much it ill cost # hat the yeild ill +e. 2nce the ork is defined, A3ST2M po er pepares a detailed technical # commercial offer for the entire project. This ill include an optimised total ,alue of the plant including trade offs +et een different operational # technical options,

consideration of unit outage duration, ta:ation, potential su+sidies, en,ironmental impacts # financing constraints.

INNO4ATI4E FINANCING
The crucial issue then is to finance the project. A3ST2M po er ill team ith the customer to arrange financing # to pro,ide inno,ati,e financing packages. Such special financing schemes ha,e pro,en to +e the most cost effecti,e solution in numerous cases # sometimes makes the difference in mo,ing projects for ard.

TRAINING 5 ASSISTANCE
During the contract performance, A3ST2M po er hydro ill train the customer&s personnel concedrening installation # maintenance of the plant. Training is organised ith courses at our facilities or at the customer&s premises or at the project site.

PROJECT E9ECUTION
A dedicated project manager pro,ides a single point of contract ith the customer # leads each project. 7:perieced project # site management teams co,er all aspects of the project from design, planning, engeneering, procurement, manufacturing, erection # commisioning through plant operation # maintenance.

BUSINESS SOLUTION
A3ST2M po er hydro kno s hat it yakes to keep an hydropo er plant at peak perfformance. There are a num+er of cases +acking their confidenc. 5efur+ishment ha,e pro,en to +e a great ,alue +y pro,iding more relia+le mega att9hours ith lo er maintenance costs # fe er unplanned outages. The decision to refur+ish reDiures more than an engeneering specifiation. 8t reDuires gauranteed in,estment costs, prformances # operating costs as ell as attracting financing.

TECHNICAL SOLUTIONS
A3ST2M po er technology centres are de,eloping impro,ed designs for hydropo er, electromechanical eDuipment, # controled systems. Specific designes for tur+ines, generators # controls are de,eloped to enhance the performance # operation of refur+ished plants. These inno,ations include en,ironmentally friendly designs such as oil free # fish friendly tur+ines # allo significant impro,ements in relia+le, lo cost generation.

COMPREHENSI4E APPROACH
A3ST2M po er is an e:perienced turnkey contractor # has all rele,ant technologies for hydropo er plants.

They ha,e the kno ledge # operating e:perience necessary to perform a comprehensi,e analysis of the plant # determine the proper +usiness solution in each case. They are a+le to impliment the optimiseFd solution as a turnkey project # pro,ide a gauranteed outcome.

FINANCING SOLUTIONS
A3ST2M po er is also e:perienced in arranging financing or in de,eloping complete financing packages or in same instances as an eDuity pro,ider. An energy proje,t in,ol,ing rene a+le energy, sho ing a fair return # +acked +y a leading contractor ill attract financing.

RETURN ON IN4ESTMENT
There is al ays room for impro,ements. The Duestion heather you can count a satisfactory return on your in,estmentS The capacity to generate cash of most of the ageing hydrop er plants can +e impro,ed su+stancially in a orld, hich increasingly ,alues relia+ility, fle:i+ility # emission free energy. A ell engeneered refur+ishment ill allo the generation of a higher output of rene a+le energy in a more fle:i+le ay at a lo er operation cost.

REFURBISHMENT
"ydro refur+ishment can +e +roken do n into three main catagoriesK 5eha+iliation The goal of a reha+iliation is to reno,ate the plant to restore it to ti&s original performance. A3ST2M po er&s ,ast e:perience ena+le us to pro,ide reha+iliation options ithion the original design criterion hile furnishing impro,ed Duality # e:tended ser,ice life. U?#%!.$ ?pgrade utilises technical progress made since the plant originally started production or since the last refur+ishment. The com+ined efforts of impro,ements in technology, design # materials results in increased efficiency # output, reduced losses, impro,ed relia+ility # e:tended serce life. M).$%"(+!,()" Modernisation is the replacement of o+solete # unrelia+le control systems ith up9to9date technology. 8t offers su+stancial technological +enefits that ene+le an older po er plant to +e operated ith the same degree of relia+ility # pereformance as a ne plant.

SOME OF THE MAJOR PRODUCTS THAT ALSTOM MANUFACTURES


KALPAN TURBINES
6alpan tur+ines are used for lo head application reanging from $' to %( meters app:. Due to their runner +lades= icket gates dou+le regulating system, these tur+ines ha,e high performance charecteristics o,er a large range of heads # loads. -ith its present tate of technology, A3ST2M po er hydro can design large tur+ines upto a $( meter runner diameter # a ''(M- unit output. The key components are then de,ide di,ided into su+assem+lies to meet transport limitations. 4or the harnessing of large ri,ers, this type of design # manufacturing method can considera+ly reduce the in,estment cost. The e:periencec # e:pertise gained for the large kalpan units are also present in A3ST2M po er hydro smaller applications. The follo ing are just a fe references sho ing A3ST2M po er htdro technical skill in this field. 1977 P Palmer /Paraguay0, ) units. 1930 P Porto Prima,era /Brasil0, $A units. 1931 P Bal+ina /Brasil0, % units. 1934 P 1achoeria Dourada /Brasil0, $ unit. 1933 P 6edung92m+o /8ndonesia0, $ unit. The 6alpan tur+ine has considera+le ad,antages o,er the other types of machines hich may also +e used for the same application. 2ne e:ample of this is seen ithin the lo er range of heads # hen the units take part in the net ork freDuency control. 2peration ith kalpan tur+ines is then more relia+le than ith +ul+ tue+ines due to the high inertia of rotating parts. 2n the other hand, ithin the range of higher heads, hen lo load operations are freDuent, the kalpan tur+ine ill +e +etter suited then the francis type resulting in high performances due to its dou+le regulating system. The purpose of the hydraulic design of kalpan tur+ines is to predict the performances of the machines through calculation methods # then to conduct an e:perimental chacking to assertain that the machine is +est suited to site conditions # meets the client&s operating reDuirements. A3ST2M po er hydro has state of art methods to carry out such studies. TA$)%(,(=!; ("'$+,(#!,()" 5 +=($",(/(= =!;=-;!,()"+ 4or the design of its tur+ines, A3ST2M po er hydro has de,eloped calculation programmes that into consideration all hydrualic parameters so that the

configuration of spiral cases, icket gates # runner +ledes can +e taken into account. A fe of these programmes are detailed +elo K straight circular +lade cascade calculations considering the effects due to +oundary layers, resulting in the accurate prediction of flo ,elocity profiles # +lade pressure distri+ution. 8teration programmes considerin the radial +alance of meridional # +lade flo s. These calculation programmes determine the optimum +lade configuration, producing all the data necessary for +lade machining +y means of !1 machine9 tools, there+y gauranteeing the +est e:ecution. Specific calculation programmes using the finite element method, hen fronto spiral cases are used, are also a,aila+le. The finite element calculations gi,e information a+out the main operating parameters of the unit, such as hydraulic forces on the distri+uter # +lades, ca,itation etc. considering the general implicayion of certain soft are programmes such as ST58MM, they can therefore +e applied to other fields. To make these calculations, A3ST2M po er hydro makes use of its high performance data processing tools such as computers, profile contour correction # graph display de,ices. A==$?,!"=$ >).$; ,$+,+ 2nce the design of a runner has +een determined +y calculations, its performances are checked +y model tests done on a special test rig. These tests are then utilised to esta+lish a correlation +et een model # prototype performances. Such correlation is all the more ,alid as there e:ists a fair agreement +et een model # prototype thanks to the mathematical defination of +lades # prcesion of !1 machining. The unit performances can +e measured thanks to automated systems allo ing for ,ery accurate measurements to +e o+tained. All operating features for ,arious are also checkedK efficiency, po er, a+sense of ca,itation, hydraulic loads. 4urthemore, the ,alidity of calculations is checked +y systematic speed # pressure measurements hich ensure a finer analysis of calculations. Besides such special test rigs, A3ST2M po er hydro has testing eDuipment ith hich it is possi+le to ensure fine flo ,isualisation # to determine hether, under special flo conditions, ,i+rations are likely to occur. A3ST2M po er hydro has managed to remain in the forefront of technology thanks to its theoritical research hich is thereafter checked on an e:perimental +asis. 8n recent years, A3ST2M po er hydro has held one of the foremost places in the field of kalpan tur+ines # its illingness to o,ercome any design pro+lems,

A3ST2M po er hydro has acDuired high performances scientific programmes # computation tools. G$"$%!; .$+=%(?,()" )/ %),!,("# ?!%,+ The o,erall design of a unit mainly includesK ' or ) +earings depending on reDuirements of the correct dynamic +eha,ior of the shaft line. A thrust +earing usually located on the tur+ine head co,er. This arrangement allo s a:ial loads to +e transferred to concrete through the upper head co,er. 8n addition, the +eha,ior of the machine is impro,ed due to the decrease in the shaft line length # the a:ial deflection of the unit. 8n the cases hen this solution is not applica+le, A3ST2M po er hydro has de,eloped a shell type crosshead hich offers high stiffness # a +eeter distri+ution of loads, resulting in a significant decrease in thermal e:pansion forces transferd to the concrete.

GO4ERNING SYSTEM
The go,erning system fulfils ,arios functionsK Speed go,erning in isolated or interconnected netr ork. 4ast speed unit starting # speed sta+ility under no9load operating conditions thanks to a specefic algorithm using adjusting parameters indipendent of those for coupled operation. Automatic unit=net ork synchronisation through runner +lade or icket gate control. 4lo or load regulation. 7fficiency optimisation in terms of head # load through a three dimensional digit cam relationship. 3oad=freDuen,y control # unit load distri+ution under A3ST2M po er hydro joint control. The range of A3ST2M po er hydro go,ernors using digital # anlogue techniDues includes de,ices particularly suita+le for the control of kalpan tur+ines thanks to the possi+ility of +lade= icket gate cam relationship. G)'$%")% The go,ernor incorporating the latest de,elopment of digital technologies allo s se,eral operating modes to +e carried outK All automatic mode9 the go,ernor controls the tur+ine all +y itself. The speed is controlled +y the go,ernor to take load ,ariations in the

net ork into account. The go,ernor is permanently self testing # it makes decision to taks adeDuate action in the e,ent of any trou+les. 5emote control9 the go,ernor recie,es load limitation, head set points etc. # actuates the tur+ine accordingly. 3ink ith an operator9 thanks to the display key+oard on the front face or a link ith a P1 computer, the operator can modify the operating setpoints, change adjusting parameters or de,lop test or trou+le shooting programmes.

The go,ernor can +e completed +y automatic systems or +y monitoring systems allo ing thre tur+ine to +e checked for correct operation. The go,ernor can also +e linked ro a data processing net ork through serial communications to minimise ire to ire connections +et een ,arious items of the po er plant # to e:change data # information ith the other eDuipment. O(; A<.%!-;(= +<+,$> The po er necessary for the opration of the ,arious control de,ices is produced +y an oil hydraulic system assiciated to a pressure tank to imoro,e safety. A hydraulic de,ice allo s the pump deli,ery to +e either set at a rated pressure in the pressure tank or at a reduced pressure at a oil tank, hich results in a considera+le energy sa,ing. During unit shut do n, the pressure tank is issolated +y a hydraulically controlled shut off ,al,e. As the pressure tank remains indipendent, the unit can immediately +e restarted. S!/$,< +<+,$>+ -ith regard to safety, A3ST2M po er hydro takes all the user&s special reDuirements into account, for instanceL "ydromechanical protection against o,erspeed. Shut do n # restarting detector systems. Shut off ,al,e hydraulic control. @i+ration detector system in the case of automated po er plants. !on linear icket gate closure rate. Detection of rotation in the e,ent of leakage.

G-!;(,< All hydraulic # electronic eDuipment is made up of consistent su+assem+lies. These su+assem+lies are fully assem+led, tested # preset in the A3ST2M po er hydro orkshopsin complience ith stringent procedures include in a Duality assurance programme in agreement ith the specifications of the largest international organisations.

PELTON TURBINES
8mpulse type tur+ine, that is, using the ater kinetic energy, pelton tur+ine can operate under a ,ery large range of heads, from '(( m to $%(( m. 2n the +asis of its e:perience, A3ST2M po er hydro can offer ,ertical shaft machines eDuiped ith multi9jat collectors upto output of )%(M- app:. ith a F(( mm diameter. 2n the other hand, 3AST2M po er hydro also designs hori;ontal shaft single or dou+le runner pelton tur+ines ith one, t o or four jets capa+le of +ieng economically used for the lo est discharges. A fe achie,ements mentioned +elo sho the ide range of types of designs, si;es # operating conditions pffered +y A3ST2M po er hydroK 1943 : malgo,ert /4rance0 1966 : 2nera /4rance0 1982 : Mont91enis /4rance0 1983 : 3otru /5umania0 1931 : Bissorte ) /4rance0

The pelton tur+ine offers the main follo ing ad,antages A ,ery flat efficiency ,urses head cur,e, therefore at lo load, the efficiency ill +e ,ery much +etter than for the francis unit. T o indipendent discharge control systemsK 9 one needle slo control system for lomiting o,erpressure to small ,alues 9 one deflector fast control system for decreasing considera+ly o,er speed. 1onseDuently this type of tur+ine ill ,ery often +e selected for the plants including long penstocks. A francis tur+ine ould reDuire, in this case, a pressure relief ,al,e or a surge shaft to +e added. Good +eha,iour in operational fle:i+ility . aters loaded ith a+rasi,e materials o ing to its high

A3ST2M po er hydro has de,eloped testing # calculation programmes for optimising the performances of pelton tur+ines. The results ha,e +een ,erified on all the machines installed +y A3ST2M po er hydro. G$"$%!; %$+$!%=A$+ 5 =!;=-;!,()" ?%)#%!>>$+ The runner # all its adjecent parts are closely related # they take part in the optimum efficiency hich may +e e:pected from pelton tur+ines. 2ptimisation of collector desing upstream of no;;le. The influence of these shapes on the ,elocity spectrum at the outlet of the collector can +e analysed thanks to the three dimensional calculations on perfect # real fluid. Systematic calculation to determine an optimum runner configuration depending on the charecteristics of each project.the industrial e:perience on scale effects regarding performance drops is particularly considered in these calculations. Mathematical defination of +ucket surface allo s the +ucket shape to +e modified using a fe key parameters. H<.%!-;(= ,$+,+ The A3ST2M po er hydro model test rig ene+les the performances of runners supplied +y ,arious types of collector # no;;le to +e studied +ut also the main follo ing phenomenon to +e analysedK -ater flo discharge into the housing Splashing of ater on the runner as a result of ,arious hindrances Do nstream le,el effect the ,arious other parameters 8n addition, special tests ena+le the jet to +e analysed as an important element for runner efficiency. Some special test loops are used for this purposeK -ater gust tunnel ith a pressurised air tank used as moti,e po er. This ena+les injurious fluctuations to +e eliminated # a finer analysis of the influence of geometrical parameters to +e made. "igh pressure circuit ith multistage pumps to study the effect of the head on jet +ursting. Thanks to such research ork, tests, analysis of industrial results, A3ST2M po er hydro has acDuired, o,er the past '( years, a forefront position among its competetors. 3ike any hrdraulic tur+ine, the palton unit consists of three main parts namely flo control # inlet de,ices, rotor # outlet de,ices. I";$,

The inlet sysytem is constituted +y no;;les fi:ed to a collector hich is itself connected to the penstock through a spherical ,al,e . the num+er of no;;led # the shape of the inlet conduit depend on the hydraulic features # on the arrangement of the plant. 4or ,ertical shaft tur+ines, the collector is completely em+edded in concrete hich therefore takes up directly reactri,e jet loads. A3ST2M po er hydro gi,es special attention to the design # manufacture of collectors hether they are of the spiral or ye +ranch type. 8n fact, the element connecting the +ifurcates together are constituted +y straight or +ent tu+es, there+ycontri+uting to reduced head loss across the conduit. These ,arious elements are shop9or9field9 elded to the ,arious flanges # the +ifurcates of cast steel or elded contruction are al ays so dimensioned as to minimise head loss. This techniDue eleminates connecting flanges. F;)B =)",%); .$'(=$+ A3ST2M po er hydro generally offers no;;Les of the straight type ith a tendency to closure hich may occur o,er the hole stroke. The needle is operated +y an oil ser,omotor inside the no;;le. To make maintenance easier, A3ST2M po er hydro e:ecutes the orking parts su+jected to sand erosion in such a ay that they can easily +e replaced ithout dismantling runner, no;;le or deflector. The condition of such orking parts, carefully designed, is of prime importance for the Duality of the jet # therefore for the performance of the machine.an altered jet causes the runner to ear more rapidly # therefore the efficiency to decrease. To increase the life of such parts, needles # no;;le tips are made either of hard chromium trested steel or of stelliteco,ered steel, depending on the Duality of ater. 8n addition, each no;;le is pro,ided ith a deflesctor +eing held off the jet +y the go,erning circuit pressure # in case of load rejection de,iating the jet, +y means of a spring. R),)%

R-""$%
A3ST2M po er hydro supplies runners generally manufactured from integral castings # made of $)H chromium FH nickel stainless steel. The runners are atatically +alanced in the shop. Buckets are machined, ,ery carefully groung # smoothed in the areas su+jected to the most se,ere loads. Many inspections are done during manufacture. The runner is connected to the tur+ine shaft flange +y means of +olts prestressed +y hydraulic hoists, there+y ensuring torDue transmission +y adhesion.

B$!%("#

The A3ST2M po er hydro +earing of the su+meerged type is +olted to the central housing +ottom section. 8t takes up radiel thrusts induced +y the jet e,en if they are operating indi,idually. The +earing is fitted ith a smooth shell made up of se,eral sections # co,erd ith anti9friction metal. As far as +earing lu+rication # cooling systems are concerned, A3ST2M po er hydro has de,eloped a techniDue making the use of e:ternal pumps nacessary. 8n fact, the oil, due to its ,iscocity, is dri,en +y shaft rotation. This self sustained circulation ensures +earing shell lu+rication # heat e,acuation.

H)-+("#
There may +e t o types of housingK either a structure ser,ing only as a pit steel liner # guide +earing supportor in the case of ,ertical shaft machines, a housing capa+le of supporting the generator atator. The later design has particularly +een de,eloped +y A3ST2M po er hydro o ingto its su+stantial cost sa,ing. This design in,ol,es an appricia+le decrease in the shaft length # therefore allo s a t o +earing unit to +e installed. SA-,-)// '!;'$+ 1onsidering the range of heads under hich pelton tur+ines operate, they are generally supplied +y long penstocks ith a high internal pressure. ?nder such conditions, it is essential for the safety of the plant to +e gauranteed. To achie,e this aim, shut off ,al,es are arranged at the +ase of penstocks, upstreem of collector. These ,al,es are capa+le of ensuringK 4lo cut off in the case of needle control system failure, 8solation of e,ery shut do n or for the maintenance of pumps. The ,al,es are mainly of the apherical type due to the ,ery high orking pressure applied. To impro,e safety conditions, the ,al,e control system may include, for samll si;es, a counter eight ensuring a tendency to closure.

GO4ERNING SYSTEM
The go,erning system fulfills ,arious functionsK Speed go,erning in isolated or interconnected net ork 4ast speed unit starting # speed sta+ility under no load operating conditions thanks to a specific algorithm using adjusting parameters indipendend of those for coupled operation. Automatic unit or net ork synchronisation. 4lo or load regulation. Tur+ine efficiency optimisation through s itching systems allo in the num+er of jet no;;les to +e automaticaly changed during operation ithout causing any distur+ances. 3oad or freDuency control # unit load distri+ution under A3ST2M po er hydro joiny control.

The range of A3ST2M po er hydro go,ernors using digital # analogue techniDues includes de,ices particularly suita+le for the control of pelton tur+ines. G)'$%")% The go,ernor incorporating the latest de,elopments of digital technologies allo s se,eral operating modes to +e carried outK A;; !-,)>!,(= >).$- the go,ernor controls the tur+ine all +y itself. The speed is controlled +y the go,ernor to take load ,ariations on the net ork into account. The go,ernor is permanently self9testing # it makes decision to take adeDuete action in the e,ent of any trou+les. R$>),$ =)",%);- the go,ernor recie,es load, limitation, head set points etc. # actuates the tur+ine accordingly. L("E B(,A !" )?$%!,)%- thanks to the display key+oerd on the front face or a link ith a P1 computer, the operator can modify the operating set points, change adjusting parameters or de,elop test # trou+le shooting programmes. The go,ernor can +e completed +y automatic systems or +y monitoring systems allo ing the tur+ine to +e checked for correct operation. The go,ernor can also +e linked to a data processing net ork through serial communications to minimise ire to ire connections +et een the ,arious items of the po er plant# to e:change data # information ith the other eDuipment. O(; A<.%!-;(= +<+,$> The po er necessary for the opeeration of the ,arious control de,ices is produced +y an oil hydraulic system associated to a pressure tank to impro,e safety. A hydraulic de,ice allo s the pump to +e either set at a rated pressure iBn the pressure tank or at a reduced pressure in the oil tank, hich results in a considera+le energy sa,ing. During unit shut do n, the pressure tank is isolated +y a hydraulic controlled shut9 off ,al,e. As the pressure tank remains indipendent, the unit can immediately +e restarted. S!/$,< +<+,$>+ -ith regards to safety, A3ST2M po er hydro takes all the user&s special reDuirements into account, for instanceK "ydromechanical protection against o,erspeed Shutdo n # resarting detector systems

Shut9off ,al,e hydraulic control @i+ration detector system in the case of automated po er plants.

G-!;(,< All hydraulic # electronic eDuipment is made up of consistent su+9assem+lies. These su+9assem+lies are fully assem+led, tested # present in the A3ST2M po er hydro orkshops in complience ith stringent procedures included in a Duality assurance programme in agreement ith the specification of the largest international organisations.

PO0ER TRANSFORMERS
A3ST2M has +een manufacturing all kinds of transformers up to %'%k@ rated ,oltage # F((M@A rated po er # reactors in Ge+;e plant for o,er )( years. !ot only the production process # tests +ut the construction # design are also supported +y computers. The transformers are manufactured in accordance ith @D7 (%)' # 871 E< or any other reDuired international standard. Some of the parts of a transformer are as follo sK $. 1ore lim+s '. 3.@. inding ). ".@. inding F. Tapping inding %. conductors <. 3.@. +ushings E. ".@. +ushings A. Pressing eDuipment B. 2!9load tap changer $(. Motor dri,e mechanism $$. 2il conser,ator $'. 5adiators $). Tank CORE A3ST2M transformers consists of the core lom+s theoritical circular cross sections. ith multople layers #

The transformar cores are produced ith three lim+s or ith fi,e lim+s due to transport constraints for large po er transformers. At the cores ith fi,e lim+s the first # last lim+s are used as returning lim+s. At the single phase transformers core can +e produced ith t o lim+s or ith three lim+s.

The lim+s ith or ithout coils lie parallel on a plain # are connected together ith lo er # upper yokes. 8n case of more than one output of ,oltage le,el reDuired, the core are manufactured ith intermediate yokes. 8n order to achie,e +etter reduced losses # lo noise le,els ith smaller core dimensions, core sheets produced ith highly de,eloped technologies are used. Generally, the thichness of core laminations (.)( or (.') mm # it is possi+le to o+tain +etter results ith (.') mm thick laser treated core sheet. 1!1 machinery is used for leangth ise # +readth ise cutting to achie,e +etter results ith these lo 9loss core sheets. Step9lap systems gi,e the +est result in stacking. The reDuired endurance on core lim+s is pro,ided ith glass fi+re supported +ands # on the yokes ith steel +est +andages o,er pressing irons. 0INDINGS The indings are the most ,ital part of transformers. The indings should +e mechanically ithstanda+le against the high ,oltage impulses # short circuit stresses hich may occur during the ser,ice of transformers. The indings are designed in accordance ith the temparature rises, insulation # impulse ,oltage le,els, o,erload conditions, short circuit srtesses hich are issued in international manufacturing standards. 8n A3ST2M, normally layer inding is used up to $$(k@ ,oltage le,el # continuous disk inding is used for high ,oltage le,els. 1opper is used as inding conductor. -inding conductors are either simple rectangular cross sectional conductors or transposed rectangular cross sectional conductors. These conductors are ounded +y insulation paper in se,eral layers to reach the reDuired insulation le,el. 3ayer indings are composed of concentrically ounded cylindrical coils together ith oil channels +et een the layers. A3ST2M uses the coil machinery hich has ,ertical # hori;ontal pressing facilities for the production layer indings. Disc indings are formed from composed ounded coils hich has ,ery high radial capacity at the inding entrance to ha,e linear impulse ,oltage distri+ution. Drying, pressing # oil impregnation are the most important factors, as ell as indings of coils. 8n A3ST2M, dynamic pressing procedure is used. 8n this procedure, the drying, the pressing # the oil impregnation are achie,ed at the same time. -hile the coils are at the drying phase, certain press forces are applied, maintained for sometime # released. This application is continued for sometime, priodically at definite inter,als # then at the end, coils are impregnated ith transformer oil. By this ay, the leangth of coils are +rought to the actual ,alues # the changes of the coil length +ecause of the humidity of the en,ironment are limited. CLAMPING STRUCTURE

The indings are compressed ith pressure segments at the upper # lo er yokes in order to encounter the mechanical stresses occurred a:ially during the short circuits hile the transformer is under ser,ice. 4or the radial stresses, the inner coil is supported ith laths +et een the core # itself # the other coils are supported ith laths in the channels +et een the coils. 4or the ,ertical pressing of the indings ith pressure segment, the hydraulic jacks are used +et een the pressing iron in the upper yoke # the segment. By applying the precalculated press9force, this gap is filled ith dried transformer+oard edges. 4OLTAGE ADJUSTMENT TAPPINGS& Due to the ,oltage ,ariations in the net orks or in the su+stations, transformers are normally eDuiped ith tapping indings ha,ing necessary taps to accomplish the reDuested ,oltage le,el. The connections of these taps are either made ith no9 load tap changer hen the transformer is deenergi;ed or ith no9load tap changer hen the transformer is under operating conditions. The moter dri,e mechanism is used for the control of on9load tap changer. This control can either +e made locally on the transformer or remotely form the control room. The opration of off9load tap changers can either +e made on the co,er or on the side all of the transformer +y manual dri,e mechanism. ?pon reDuest, motor dri,e mechanism can +e pro,ided to operate the off9load tap changers. TANK 5 CONSER4ATOR The tank of a transformer in hich acti,e part that is formed of core # coils is placed should ithstand the mechanical constraints during the transportation, ,accume applications during the oil treatment # hydroststic # dynamic stresses hich may occurduring the ser,ice conditions. Therfore, necessary supporting elements are installed on the outer surface of the tanks to o,ercome the a+o,e mentioned stresses. The type of the tank is determined according to the transportation type. The flet +ase type tanks can +e carried +y straight platform=lo +ed trailers. Special measures on the tank can +e taken on different transportation types, such as supporting lugs at the side alls, supporting lugs at the narro alls for transportring in Schna+el ,ehicles. 2n the tanks, there are oil treatment connection ,al,es, oil sampling cocks, lifting lugs, +utterfly ,al,es to hich radiators are connected # the oil connection ,al,es to other types of coolers in case. To pro,ide the mo,ement of the transformer, it can +e manufactured it heels or skid +ase. All gasket surfaces at the tank are treated ith utmost care to pre,ent un anted oil leakages. 8n A3ST2M, all gasket surfaces are painted ith a special paint against corrosion. Before painting, outer surfaces of the tanks are sand +lasted in accordance ith international standards. 4or radiators, after the chemical surface protection process, o,en +acked painting # inner resin coating are applied. ?pon reDuest, ;inc sprayed tank # gal,anised type radiators can +e supplied. Standard

color is cement gray, +ut other colors can +e pro,ided on reDuest. The connection of the co,er ith the tank frame is made +y +olts # oil leakage is a,oided +y special 29ring oil resistent ru++er gaskets. 1onser,ators are used in transformers to compensate the increase of oil ,olume due to heat. The oil flo s from tank to conser,ator or from conser,ator to tank through the pipe +et een co,er # conser,ator. Depending upon the e:pansion # e:traction of the oil, air enters or e:its the conser,ator through a dehydrating +reathereDuiped ith silicagel particles. As a result of this mo,ement, dust, dirt or chemical gases in the en,ironment may enter the conser,ator # contacts the oil. So the aging of the oil +ecomes faster. ?pon reDuest, this can +e a,oided +y using special oil preser,ation system. The conser,ator has separate compartments for main tank # the on9load tap changer oil. These compartments ha,e no air leakage. COOLING 8n transformers, the cooling has a special importance to ensure safe operation # to increase the lifetime of the transformer. The heat occurred in the transformers is dissipated at the cooling unit +y the help of the oil. The simplest # mostly used cooling system is 2!AM. 2!A4 is cooling system in hich cooling air is +lo n to the radiators +y fans, is also used. The radiator +atteries can also +e used separately in the cases hich ahere the installation place is considera+ly limited or upon reDuirements of the customers. 8n some cases hich the rating of the transformer is considera+ly high, it may +ecome necessary to install the +atteries apart from the transformers. The main coolers areK 2il9air # 2il9 ater coolers. MEASURES FOR NOISE REDUCING The +igger rated po er transformers are installed in the energy distri+ution centersL i.e. in the su+stations, near to ur+an areas, as the demand of energy increases due to the rapidly increasing population. Surely in the ur+an areas the noise le,el reduction of the transformers has a ,ital importance regarding the health of human +iengs. As a conseDuence of this inportance, the ma:imum noise le,el has +een limited +y regulations # la s in most countries. All the transformers put into ser,ice in such regions should ha,e noise le,els under the limit ,alues. The noise le,el reduction measures for transformers can +e outlined into four major groups as follo sK $. The measure taken in the acti,e part 9 to design the transformer ith lo flu: ,alues 9 to use "i9B Duality steel 9 to use step lap method to cut the core steels 9 to install special ru++er sheets +et een the core laminations

the +andaging of the core lim+s # the elastic connection +et een acti,e part # the +ottom of the tank pre,ent the ,i+ration from transfering to the +ottom part of the tank

'. The measure taken in the tank 9 the installation of the sand itch panels onto the outer surface of the tanks. The sand itch panel isa noise a+sor+ing all formed +y pressing Mstell=insulation sheet=steelN together. The gap +et een the sand itch panel # the alls of the tank is filled ith srone ool up to A(9B(H. This measure can reduce the noise le,els +y appro:imately < dB/A0. ). The measure taken at the cooling system 9 the measure taken at the cooling ayatem at the outside of the tankare those of using lo cycled fans at oiled air cooling systems # putting panels to air entrance # air e:it parts of the cooler. F. Measures taken at the ser,ice place of the transformer 9 if a+o,e mentioned measured measures are not enough at the ser,ice place of the transformer, it may +e necessary to take some additional noise reduction measures. The transformer is put in a specially premanufactured cell hich has noise a+sor+ing panels. This measure can reduce the noise le,el up to $% dB/A0. CONNECTION TERMINALS 8n "@ terminal connections o,er )( k@ rated ,oltage, for the aerial line connections oil=outdoor air condensor +ushingsL for G8S connection applications oil=S4< or oil=oil condensor +ushings are used. The terminal connections in the transformers of hich rate ,oltage is less or eDual to )( k@, can +e made ith oil filled D8! +ushings replaced ith D8! +ushings. ?pon reDuest, air or oil insulated ca+le +o: can +e pro,ided. At 3@ terminal connections ith high ,oltage ,alue, upon reDuest, air or oil insulated ca+le +o: can +e pro,ided. At 3@ terminal connections ith high ,alue of currents, oil=open air condenser +ushings in generatorL ater cooled pipe or +artype +ushings in9furnace or rectifier transformers are pro,ided. PROTECTION 5 CONTROL EGUIPMENT The transformers are eDuiped for the operational securityK $. Buchhol; relay ith the follo ing protection # control instruments

8t is mounted on the pipe connection from transformer tank to conser,ator. The gases hich occur in the transformer for any reason are collected here # depending on the ,olume of gas it gi,es an alarm or control signal. '. Pressure relief de,ice 8t is mounted on the transformer co,er. 8t replies to the sudden pressure increase that may occur +y an arc in the oil in the transformer # gi,es tripping signal +y the contacts on itself.

). 2il le,el indicator 8t is mounted on the side all of the conser,ator. Depending on the oil temparature ,ariations, it indicates the oil le,el in conser,ator # gi,es too loe or too high indications on the contacts on itself. F. Dehydrating +reather 8t is mounted on the conser,ator. 8t takes the moisture # dust in the air that enters the conser,ator # increases ser,ice security of the transformer, the amount of silicagel particles in it ,aries ith the amount of the oil in the transformer. %. 2il thermometer 8t controls the temparature of the oil in the transformer tank # gi,es alarm # trip signal at the adjusted temparature limits. 8t gi,es start # stop signals for the fans used at forced cooling. 8f remote control is reDuired, PT $(( resistance or F9'( mA output is added to it. <. -inding thermometer 8t controls the temparature of the indings ith its monitoring circuit # gi,es alarm # trip signals at the adjusted temparature limits. 3ike the oil thermameter, it is used for the control of fans # if reDuired PT $(( resistance F9'( mA output is added to it. E. 2il flo indicator 8t controls the flo of forced oil cooled transformers. 8t is mounted on the pipe connection in hich the oil flo s through. 8t gi,es alarm signal if the oil doesnot flo for any reason. TESTS 4or a +etter Duality assurance, follo ing teats are performed on all of the manufactured transformers to ,erify that they ha,e +een designed # constructed to ithstand conditions stipulated +y national # international standards. 5outine tests 9 Measurement of inding resistance

9 9 9 9 9 9

Measurement of ,oltage ratio # check of ,ector relationship Measurement of impedance ,oltage # load loss Measurement of no9load loss # current 8nduced o,er,oltage test Applied ,oltege test Test on on9load tap changers

Type # special tests 9 Temperature reise test 9 Measurement of insulation resistance 9 Measurement of capacity # tangent of insulation loss angle 9 1hopped a,e impulse test 9 Measurement of acoustic sound le,el 9 Measurement of ;ero seDuence impedence 9 Partial discharge measurements 9 Measurement of harmonics of on9load current 9 Measurement of po er taken +y the fan # oil pump motors 9 Short circuit ithstand test

AFTER SALES SERVICE CUSTOMER SUPPORT LINE


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The customer support line is a free A3ST2M po er ser,ice esta+lished to gi,e hydro plant o ners # A3ST2M a forum to jointly discuss technical or oprational hydro isues. The ser,ice ill respond to minor hydro issues or pro+lems ,ia ell defined Duestions that can +e handled +y a telephone call, e:change of letters=fa:es or +y e9mail. Should the Duestions raised +ecome more specific or the reDuested ans er lead time ,ery demanding, then the support ill +e charged in function of the ,olume of e:change # the time co,erage.

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By using the custoemr support line one ill o+tain hydro related technical assistance in a fast # easy process to help the company to sol,e their minor technical # operational pro+lems. A3ST2M po er hydro ill in,ol,e e:perienced # Dualified company e:perts to espress their hydro issues.

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By using A3ST2M po er hydro customer support line one ill a,oid the time consuming search for the right specialist to address their hydro pro+lems.

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Through the customer support line one ill +e a+le to esta+lish informal contacts ith e:perienced A3ST2M po er hydro personnel # there+y sol,e minor pro+lems ith a minimum of effort. A3ST2M po er hydro ill maintain # distri+ute A3ST2M contact liss to interested parties. The contact list ill pro,ide contact names # phone # fa: num+ers to +e used in acse of pro+lems. -hen a customer support line discussion suggests that a more detailed re,ie # more efforts are needed, other A3ST2M po er hydro ser,ices such as +reak do n support or technical assistance are a,aila+le. The A3ST2M po er cantact person ill suggest these other ser,ices # ad,ice on ays the customer may limit their pro+lem +ased on a,aila+le information.

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The customer support line is free of charge for a limited num+er of calls. Should the num+er e:ceed a initial credit or comple: technical reDuests in,ol,ing e:tensi,e research # specialists attention +e reDuired, then the support ill +e charged.

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The customer support line ill lead toK 8mpro,ed Duestion response time 5educed trou+le shooting efforts 5educed outage time.

BREAKDO0N SUPPORT
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Breakdo n support is support ser,ice from A3ST2M po er aimed at the fast # eficient return of hydro generation # the reco,ery of a plant&s sta+ility due to operational distur+ances.

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By reducing the do n time caused +y a plant distur+ance, +reakdo n coats sucg as lo re,enues #=or cost of purchased po er may +e held to a minimum. 8n addition, e:perienced # ready A3ST2M po er personnel reduce ones need to maintain such specialised staff resources in9house.

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-hen a +reakdo n occurs, A3ST2M po er ill return the unit to normal operation as Duickly as possi+le. 8n addition, A3ST2M po er ill analyse the cause of the +reako n in order to recommend a permanent repair. -ithin A3ST2M po er, +reakdo m support is a high priority ser,ice designed to deli,er the necessary manpo er, competence # the most common materials=spares on short notice. 8nternal A3ST2M systems are used to e:pidite site orks preparation, reDuest preparations # arrange stand +y ser,ice personnel.

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Breakdo n support is a fast response to your +reakdo n reDuests using e:perienced engineers # repair resources. Based on pre,ailing conditions # time limits, this ser,ice ill include analysis of inherent failure mechanisms # causes. "o e,er, should more detaileed tests # analusis +e reDuired after the actual reco,ery of plant operational health, A3ST2M po er is ready to discuss such e:tended studies. Breakdo n support may +e used as a stand alone ser,ice or as part of a more e:tensi,e A3ST2M po er ser,ice contract. 8n the latter case moer detailed site conditions suchas response time , type of personnel # stock of spare parts to +e identified for that particular plant ill +e e,aluated.

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Breakdo n support ill +e in,oicedon a cost plus +asis.

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5educing do ntime is critical hene,er +reakdo n occurs. The additional cost of a Duick response is relati,ely small compared to the loss of hydro production re,enues. By relying on A3ST2M o er one mayK 3imiy his=her e:posure to loss of re,enues 5eco,er generation output 5eturn the unit to production.

TECHNICAL ASSISTANCE
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Technical assistance is a ser,ice from A3ST2M po er that pro,ides their customers ith the technical competence to impro,e the operations of their hydro plants. This assistance includes a general technical analysis, the assessment of all hydro plant eDuipment for operational # life span conditions # planning of future plant upgrade #=or maintenance projects.

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By relying on A3ST2M po er personnel e:perience # technical competence, one ill +e orking to ards optimal solutions hile reducing their o n engineering costs.

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A3ST2M po er hydro technical assistance ser,ice gi,es to the customers access to A3ST2M&s competence # knoe9ho as a orld ide supplier mastering all hydro plant eDuipment technologies. This ser,ice allo s one to share their e:perience of a complete range of hydro plant designs # operating practices. This uniDue engineering capa+ility can only +e maintained thanks to their di,erse installed +ase. ide #

A3ST2M po er hydro technical assistance ser,ice is +ased on a strong internal net ork of engineering # ser,ice resources. This ser,ice is supported +y a co9 ordinated e:change of data +et een A3ST2M units to ensure the a,aila+ility # the Duality of all rele,ant product information.

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The technical assistance ser,ice ill include the inter,ention of Dualified engineers ho ill meet the customer to understand the issue # plan the inter,antion ith the client. Then A3ST2M po er team shall undertake, as directed, a detailed assessment using up9to9date e,aluation tools # methodologies. All technical assistance ser,ices shall +e summarised +y a confidential technical assistance report including measurement, schedules, interpretation # assessment, as ell as their final conclusions # recommendations.

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Terchnical assistance ser,ice ill +e in,oiced on a cost plus +asis.

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By using A3ST2M !po er one may assessK 7Duipment limitations Potential capacity impro,ements Ma:imised eDuipment performance

SPARE PARTS
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8t is difficut to esta+lish # maintain a spair aprt soct for an hydro plant +ecause many of the main components are specific to each plant. "o e,er certain su+9 components are standardised # therefore it is possi+le maintain a stock, hether in A3ST2M po er hydro or in clients premises, of the most common parts, hich are used in a ide range of hydro plants. A3ST2M po er has esta+lishe a system for a common spare parts stock supply that can reduce the demnds on a plnt o ner&s share parts store, simplify order procedures # minimise the conseDuences of an uplanned shutdo n of the plant.

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A3ST2M po er hydro orks to ensure that one ill ha,e common spare parts that fi their e:isting eDuioment. A3ST2M supplied spare parts are of high Duality, dura+le # designed for long tife.

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Because 3AST2M po er spare parts are readily a,aila+le, you can e:pect good ser,ice # prompt deli,ery. Their efficient customer se,ice systems ill deli,er spare parts that ill reduce su+stancially the outage time of their plant.

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The A3ST2M po er hydro spare parts system is +ased on systematic analysis of the lifetime of critical hydro components, the e:tent of standard components used, an updating system for old dra ings # a list of a,aila+le su+9suppliers for outsourced components such as instrumentation, heat e:changers, ,al,es, pipes, etc.

The most commonly reDuired spare parts, either due to normal ear # tear or in function of their criticality for the plant operation, ill +e stocked, taking into account the num+er of plants in,ol,ed in the spare parts system. Special agreements concerning the scope of stocked spares may +e esta+lished +et een different spare parts systems. A general mapping # an efficient linking net ork +et een the spare parts systems ill allo to o,ercome occassional shortages. The deli,ery of certain spare parts may reDuire manufacturing or supply +y third parties. 8n all cases, A3ST2M po er hydro ill keep the supply cycle to a minimum +y using efficient processing procedures, fast access to rele,ant dra ings # special agreements ith preferred su+9suppliers.

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Spare parts ill +e in,oiced on acost plus +asis. -arehousing fees ill +e charged separately on a time +asis.

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?sing A3ST2M po er as ones spare parts supplier one ill +e a+le toK Minimise parts in,entories 5educe parts order cycle # deli,ery time 5educe outage time 7:tend lifetime of old eDuipment.

TRAINING
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?ptdate the skills # kno ledge of client&s operation # maintenance personnel through standard modules of theoritical lectures # practicle training on eDuipment technology # 2#M procedures.

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6eep 2#M personnel competence le,el De,elop pre,entine # condition +ased maintenance Make use of the e:pertise of A3ST2M po er hydro 8mpro,e 2#M personnel a areness to ne technologies # methods.

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5educe 2#M costs

8mpro,e 2#M Duality Moti,ate people

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Standard training modules ith possi+le customisation @enue in any A3ST2M po er hydro training centre or at client&s premises 2peration training Maintenance management training 7Duipment training Training documentation A3ST2M po r hydro may arrange the training session to ,isit an hydro po er plant at Porjua in S eden 4inal e:am at the end of the training session.

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Price per eek # per trainee, depending on the num+er of trainees at the same time. Tra,el # accomodation can +e arranged.

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8mpro,ement of staff competencies increases Duality le,el # reduces risks # costs.

MAINTENANCE ENGINEERING
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?pdate state9of9the9art maintenance sustem, coherent ith cielt&s operational strategy at +oth unit # plant le,els pro,idingK Doccuntation management Maintenance programme implimentation Spare holding selection, decision chart # procurement programme Technical assistance on eDuipment design, condition of operation # o,erhaul super,ision 8nstallation of computer maintenance management system

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Best practice Better co9ordination ith operation 5ationalisation of organisation

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5educed maintenance costs Minimum do ntime for planned maintenance Means to pre,ent forced outages 2ptimisation of spare holding costs

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Diagnosis of present status 8dentification of impro,ement areas 8mplimentation of updated orking methods

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@ery short pay+ack 8ncreased a,aila+ility # relia+ility 5educed planned outages # pre,ention of forced outages

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3ump sum price co,ering process engineering # soft are releases Spares as per actual.

REMOTE CONTROL IMPLIMENTATION


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2ptimisation of operation 8ncrease of plant # eDuipment safety Possi+ility of co9ordinated control of se,eral plants 7:tension of plant remaining life

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Manned plants are con,erted to centralised remote control operation throughK Modernisation of e:isting unit local control system 4itting of instrumentation # maintenance free components 5emote data transfer Training of operators

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5eduction of 2#M costs 8ncrease of a,aila+ility

2ptimisation of plant efficiency 4aster response to grid demands

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4easi+ility study for plant con,ersion to remote control Modernisation of plant eDuipment -ater management ayatem # condition monitoring 7Duipment design, supply # installation Support to reorganise the plant 2#M organisation.

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4easi+ility study costs +ased on engineering man9hours 3ump sum contract for implimentation of plant con,ersion.

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@ery short pay +ack period thanks to lo costs of engineering # supplies compared to large reduction in operation in operating costs.

LIFE TIME E9TENSION PACKAGE


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The plant a,aila+ility # its remaining life depends on condition # edge of the eDuipment # the ay of operation # maintenance. The information gained from a comprehensi,e assessment allo s the determination of impro,ement measures to achie,e an optimum of life time # a,aila+ility.

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Maintain plant at ma:imum production Minimise all type of outages 2perate # maintain plant the most efficient ay 2ptimise timing # amount of in,estments Make use of the e:pertise of A3ST2M po er hydro

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6no ledge of actual eDuipment condition 8ncreased life time 8ncreased a,aila+ility A,oida catastrophic +reakdo n

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1ondition assessment of plant systems # components +y hydro po er plant specialists Sur,ey of operation # maintainance data # procedures 8n,estigation on spare part policy 7,aluation of eDuipment condition # procedures +y specialist ofr A3ST2M po er hydro 1ondition assessment report on eDuipment # procedures ith reccommedation of liofe time e:tension measures

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3ump sum fee co,eringK Personnel, eDuipment, transport for on site assessment 7,aluation of assessment information # data 5eport on eDuipment condition ith recommendations for life time e:tension

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"igh return on in,estment throughK 8mpro,ed a,aila+ility # fle:i+ility 5educed outage time due to +reakdo n 5educed insurance cost.

CONDITION MONITORING PACKAGE


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A,oids catastropic damages 6no ledge of eDuipment condition at all times 8mpro,ement of glo+al a,aila+ility of the plant Permits on9condition rather than periodic maintenance Access to A3ST2M po er hydro large data+ase

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The trend sur,ey of +asic measura+le physical ,alues spread o,er key locations of the plant allo s to detect the critical ear of the parts far +efore ot may cause a se,ere damage leading to an unplanned outage.

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8ncrease of a,aila+ility 2ptimisation of maintenance costs

A,oidance of unplanned shut9do ns ?nplanned shutdo n ratio guarantee

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8nstallation of an on9line condition monitoring system Transmission of rele,ant plant data in the condition monitoring center of A3ST2M po er hydro 1ontinuous super,ision # trend monitoring of rele,ant plant operation data 7,aluation of plant eDuipment condition +y e:perienced A3ST2M po er hydro specialist Periodic report on condition, specific recommendations for maintenance # inspection acti,ities a,aila+ility rate.

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Monthly fee +ased on duration of contract co,eringK 8nstrumentation monitoring system 8nstallation # commisioning 5eports # recommendations

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"igh pay +ack9 thanks toK A,oidance of outages due to unplanned shut9do ns 5eduction of 2#M costs Sa,ings on insurance costs.

FULL RELIABILITY PACKAGE


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The condition # design of the plant eDuipment # its operation # maintenance are the main parameters ith regards to its relia+ility. Based on a focused analysis of the eDuipment # orking procedures, a detailed technical # economical in,estigation is carried out ith the aim to reach full operational relia+ility of the plant.

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8deally designed for peaking hydro plants Alo sto achie,e ma:imum a,aila+ility # minimum maintenance shutdo ns Allo s to impro,e the procedures used in operation # maintenance

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Actual condition status of the eDuipment Measures to optomise eDuipment condition, operation, maintenance, training # spares Means to pre,ent forced outages 8ncrease of relia+ility rate.

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3ump sum fee co,eringK Personnel, eDuipment, etc. foe assessment # data collection Studies on plant condition, 5AM data, design modifications 5eport ih studies # measures to achie,e full relia+ility.

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Allo s to access the economic # effecti,e impro,ement measures to impliment.

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7Duipment condition assessment ith collection of operation, maintenance # spare in,entory data Plant audit # operation, maintenance # staff 7,aluation of eDuipment condition # 5AM analysis 1ondition report ith proposals for impro,ement measures Design modification studies

PLANNED MAINTENANCE
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A3ST2M po er hydro pro,ides the scheduled maintenance of the hydro plant in accordance ith the ishes of the client. A3ST2M po er is a+le to design different types of maintenance programmes for all eDuipment in a hydro po er plant. This includes the prepareation of maintenance procedures as ell as personnel recruitment # training. Planned maintenance programme co,ersK Pre,enti,e maintenance Periodical maintenance Schedule maintenance Diagnostic

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Access to A3ST2M po er hydro orld ide e:perience # skills 2utsourcing of planned maintenance.

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1ontrolled # forecasted maintenance costs Assurance to +enefit of the most skilled scre s for any type of components Maintenance preogrammes to optimise eDuipment&s condition, operation, maintenance training # spare parts. Access to A3ST2M po er hydro large maintenance data nase.

G!-%!",$$
Planned outage lead time

I>?;$>$",!,()"
Plant eDuipment assessment # spare parts in,entory Agreement on scope # programme ith the client Maintenance programme # spare parts procurement 7:ecution of planned maintenance according to schedule 1ompletion report # recommendation

C)+,
3ump sum fes for manpo er 1ost plus fees for spare parts.

R$,-%" )" ("'$+,>$",


Taking ad,antage of a large fleet effect A3ST2M po er hydro is a+le tp propose competiti,e maintenance ser,ices prices.

TOTAL MAINTENANCE
P%("=(?;$+
After a full condition assessment of the po er plant/s0, share of scopes # responsi+ilities are agreed on ith the operator. Prior to the date of effecti,eness of the contract, maintenance procedures are prepared as el as personnel recruitment # training. Taking into account the production constraints, a maintenance schedule is esta+lished # spare parts are procured. The client is totally relie,ed of any maintenance conceren # can concentrate on operation # energy deli,ery to the grid.

I",$%$+,
Allo s to concentrate on operations # electricity sale Access to A3ST2M po er hydro orld ide e:perience # skills.

G!-%!",$$
A,aila+ility garauntee 4orced outage ratio

B$"$/(,+
1ontrolled # forecasted maintenance costs Possi+le takeo,er +y A3ST2M of e:sting maintenance cre Assurance of +enefit of the most skilled cre s necessary to support the "PP operation # maintenance Access to A3ST2M po er hydro large maintenance data +ase.

I>?;(>$,!,()"
Basic agreement on re,enue=risk sharing Po er plant condition assessment Spare parts in,entory recommendation # +udget Maintenance procedures de,elopment "iring # training of personnel Management of the maintenance deprtment of "PP facility for the duration of the contract Demo+ilisation plan at the end of the contract

C)+,
Monthly fi:ed # ,aria+le fees.

R$,-%" )" ("'$+,>$",


1lient is in partnership ith a ser,ice pro,ider hose interest is also to cut do n the costs hile optimising the Duality of maintenance Taking ad,antage of a large fleet effect A3ST2M po er hydro is a+le to propse maintenance competiti,e prices.

FULL OPERATION 5 MAINTENANCE


P%("=(?;$+
After a full condition assessment of the po er plant/s0, a production plan is agreed on ith the client. Prior to the date of effecti,eness the contract, op(eration # maintenance procedures are prepared as ell as personnel recruitment # training.

Taking into account the electricity market # demand constraints, A3ST2M po er hydro esta+lishes a long term production plan # a maintenance schedule. The client is totally relie,ed of any operation # maintenance concern # can concentrate on energy sale to the grid.

I",$%$+,
Allo s to concentrate on electricity sale Access to A3ST2M po er hydro orld ide e:perience # skills.

G!-%!",$$
A,aila+ility gaurantee Production le,el

B$"$/(,+
1ontrolled # forecasted 2#M costs Possi+le take o,er +y A3ST2M of e:isting 2#M cre Assurance to +,enifit of the most skilled cre s necessary to support the "PP operation # maintenance Access to A3ST2M po er hydro large maintenance data +ase. Basic agreement on re,enue=risk sharing Po er plant condition assessment Spare parts in,entory # recommendation # +udget 2peration # maintemance procedures de,elopment. "iring # training of personnel Management of the "PP facility for the duration of the contract Demo+ilisation at the end of the contract

I>?;$>$",!,()"

C)+,
Monthly fi:ed # ,aria+le fees.

R$,-%" )" ("'$+,>$",


1lient is in partnership ith a ser,ice pro,ider hose interst is also to cut do n the costs hile optimising the le,el of production Taking ad,antage of a large fleet effct A3ST2M po er hydro is a+le to propose 2#M competiti,e prices.

FULL RELIABLITY PACKAGE


P%("=(?;$+

The condition # design of the plant eDuipment # its operation # maintenance are the main parameters ith regards to its relia+ility. Based on a focused analysis of the eDuipment # orking procedures, a detailed technical # economical in,estigation is carried out ith the aim to reach full operational relia+ility of the plant.

I",$%$+,
8deally design to peaking hydro plants Allo s to achie,e ma:imum a,aila+ility minimum maintenance shutdo ns Allo s to impro,e the procedures used in operation # maintenance

B$"$/(,+
Actual condition status of the eDuipment Measures to optimise eDuipment condition, operation, maintenance, training # spares Means to pre,ent forced outages 8ncrease of relia+ility rate

C)+,
3ump sum fee co,eringK Personnel, eDuipment, etc. for assessment # data collection Studies of plant condition, 5AM data, design modifications 5eport ith studies # maesure to achie,e full relia+ility

R$,-%" )" ("'$+,>$",


Allo s to access the economic # effecti,e impro,ement measures to implement

I>?;$>$",!,()"
7Duipment condition assessment ith collection of operation, amintenance # sapre in,entory data Plant audit on opeeration, maintenance # staff 7,aluation of eDuipment condition # 5AM analysis 1ondition report ith proposals for impro,ement measures Design modification studies.

SOLUTIONS
MINI HYDRO SOLUTIONS

A3ST2M ha,e de,eloped a complete mini hydro solutionK M8!89AQ?A, hich integrates the hydro9tur+ine, generator # the control system in a single # optimised product. M8!89AQ?A has +een designed to the highest possi+le return on in,estmentK Short deli,ery times, to optimise your in,estment program. 7ffecti,e turnkey solution, to gaurantee a project. 2ptimum performance, to ma:imise the future re,enues. "igh relia+ility to ensure return on in,estment. 7asy installation ithin ci,il orks to reduce construction risks. 1ost effecti,e solution to minimise in,estment outlay. A3ST2M ha,e taken a lgo+al approach in order to produce an integrated product. -orking together, technical de,elopers ha,e com+ined their ,ast kno ledge of hydroelectrical science # technology to design a single mini9hydro concept incorporating the tur+ine, generator # control system Mini9aDua is a single # glo+al solution for producing energy from mini hydro resources. The A3ST2M po er hydraulic technology centre in Greno+le, 4rance, ahs a orld ide reputation for in,enting high performance hydraulic solutions. Mini9 aDua +enefits directly from this research. The A3ST2M po er generator technology centre in Birr, S it;erland, leads the orld ide acti,ities of generaotrs, in,estigating ne tachnologhies such as po erformer or ,aria+le speed. A specific range of standardise small generators has +een de,eloped to complement mini9aDua. The de,elopment of control system # the design of solutions for electrical eDuipment supply are co9ordinated orld ide. The control system used in mini9 aDua is the aDua. 8n one compact package, it pro,ides all the necessary control, monitoring, ,oltage regulation, speed go,erning, synchyronising, coupling # electrical protections. 4or high speed applications, mini9aDua incorporates pelton type tur+ines # high speed generators directly coupled to them. T o configurations are a,aila+leK "ori;ontal shaft ith one or t o injectors. @ertical shaft ith four or more injectors. Multi injectors no;;les ,ertical solution is prefera+le for higher outputs # hen operations ith a ,ery ide range of flo s is reDuired. "ori;ontal solution is generaly used foe lo er outputs undeer higher heads. 8t is simple to install resulting in economical ci,il orks. These machines gi,e ,ery good performances

on a large range of flo s, pro,ided the head doesnot significantky fluctuate. -e ha,e selected a modular standardisation approach, hich allo s to si;e the machines precisely to to site reDuirements # keep the ad,antages of the standardisation. The efficiency of high head mini9aDua remains at ,ery high le,el e,en if the discharge ,aries significantly. 4or medium head applications mini9aDua incorporates francis tur+ines # more often the generators are directly coupled to them. Three configurations are a,aila+leK 4"S, 4rancis hori;ontal shaft, single runner. 4"S, 4rancis hori;ontal shaft, dou+le runner. 4"S, 4rancis ,ertical shaft. 4"S is the most common type of mini9hydro. 8t is easy to install resulting in economical ci,il orks. 8t is easily accessi+le # maintenance is simple. 4"D is ,ery similar to 4"S type , +ut dedicated to higher discharges. 8ts shaft crosses the ater passages. To optimise future re,enues of production against the immediate economy of in,estment, A3ST2M ha,e selected a modular standi;ation approach. The design is standardi;ed # the tur+ine si;e is adusted to the hydraulic charecteristics of the site. -hate,er its si;e, mini9aDua components ill al ays +e consistent. 4@ is prefera+le for higher outputs. 8ts interface ith the ci,il orhs is usually more important. 4or lo head applications, mini9aDua incorporates kalpan tur+ines of the MSN type family, ith generators coupled directly ot it or indirectly through a gear +o: for larger outputs under a lo er head. A3ST2M ha,e selected MSamN, the upstream el+o type, for a +etter performance compared ith any other MSN type tur+ine. The ad,anteges of this configuration compared to other MSN types areK A straight draft tu+e leading to +etter efficiencies. The e:ca,ation reDuired for ca,itation control is less deep. A smaller runner admits the same discharge. These ena+ling more economic ci,il orks # increased production. Sam can +e installed in different positions to optimise the ci,il orks. These mahines are ,ery tolerant of all hydraulic conditions # they offer good performances o,er a ,ery ide range of flo s # heads. A fully standardi;ed range ith predetermined dimensions has +een design to co,er energy needs from

%((k- to $%M-. 1areful attention has +een paid to the components selection to gaurantee economy # relia+ility. 4or ,ey lo head applications, mini9aDua incoprporates kalpan tur+ines, usually ith high speed generators coupled indirectly through a gear+o:. T o configurations are a,aila+leK Pit type, open pit +ul+, hori;ontal or slightly inclined shaft. 6af type, kalpan ith frontospiral case, ,ertical shaft. Pit has +een significantly designed for appliocations ith high flo s of ater. 8t incorporates a kalpan type runner, in a straight # hori;ontal hydraulic duct. As standard, the gear+o: is parallel hich is the more economical # optionally of epicyclical type to reduce losses. The generator # the gear+o: are installed in an accessi+le open pit. The pit alls can +e made of concrete or steel for higher heads to reduce +uilding idth. 6af is a fronto spiral ,ertical tur+ine, smplified for mini9hydro applications. The spiral case is larger than a kalpan, it has a rectangular section # is made of concrete. The distri+uter is usually fi:ed for simplification or optionally adjusta+le hen operation on a ider range of discharges # heads is reDuired. A fully standardi;ed range has +een design co,er all needs from )((k- to $(M-. All solution use the same standard components as the Sam family to garauntee economy # relia+ility. -hen one choose A3ST2M po er solution, the +enefit is from the uniDue e:pertyise of a long esta+lished company. A centuary ago, A3ST2M ere pioneers in the field of hydroelectric acti,ity. Since that time, they ha,e continued to +e at the forefront of inno,ation # de,eloping ne technologies to impro,e their products. Today their hydro refference list is impressi,e, totlling more than ''((((M-. Among them they ha,e +een in,ol,ed in yhe construction of more than )((( mini9 hydro stations orld ide. -hate,er the needs, A3ST2M can supply +est economical relia+le solution. ith a trou+le free product to gi,e thes

HYDRO PO0ER SOLUTION


-hate,er hydro needs, A3ST2M can help. Their +usiness approach is Duite simple9 they +elie,e that +ehind each custoemr&s concern lies the potential opportunity ot impro,e its profita+ility. A3ST2M can offer the idest range of optimised solutions orld ide on a atr to ire +asis.

A3ST2M ha,e in,ested in ne facilities all o,er the orld # in ne simulation tools to offer the +est possi+le Duality. Their internal programme, Duality focus, has +een redeployed to gaurantee the highest Duality, from design to commissioning. 7:perts at A3ST2M po er&s orld ide technology centrers are constantly stri,ing to increase the efficiency of their tur+ines # generators to help to ma:imise the return on in,estment. Th einno,eti,e solutions # ne products such as hooped pelton # +reakthrough po erformer generators are +eing de,eloped to respond to the future needs market. 4urthermore, fishfriendly tur+ines # ad,anced design for tur+ine # generators are currently +eing de,eloped. ?nri,aled presence in more than E( countries means they can ork locally to achie,e the +est possi+le solutions for projects. -ith their uniDue turnkey e:perience they lead # manage complete hydropo er plant projects # supply high Duality, technologically ad,anced po er products # ser,ices. -ith the +acking of the entire A3ST2M group, they can help to arrange comprehensi,e financing solutions # contri+ute to the success of the project. A3ST2M po er installed +ase is the largest ith record +reaking projects records such asK 8taipu, Tucurui, Bra;il 3a Grande, 1anada Guang Thou, 1hina A3ST2M ha,e e:tensi,e e:perience in offering turnkey solutions # in supplying comple: projects throughout the orld, heather ne or refur+ishment programmes. They +elie,e that to meet their customer&s e:pectations, they mustK 2ffer a single # effecti,e point of contact to coordinate # interface ith all parties Gaurantee the deadline # performance of the project. A3ST2M ha,e de,eloped an inno,ati,e engineering # construction method to meet a ,ariety of customer needs. They can act as consortium leader for major projects. 8ncorporating the consulting engineering, ci,il orks # electromechanical components, taking full responsi+ility for the projects # is optimisation. A3ST2M po er has de,eloped a range of turnkey solutions +ased upon standardi;ed electromachanical eDuipment to satisfy all reDuirements from %(( 6- to $% M- under any head. These cost effecti,e # relia+le hydropo er plants are an ideal solution in localised po er production for industrial # agricultural applications. Most ageing hydropo er plants can +e refur+ished to geneerate more rene a+le energy ith a high return on in,estment. Their refur+ishment includeK 5eha+ilitation hich reni,ates the plant to its original performance. ?pgrading hich impro,es the original performance of the plant.

5eplacement of o+solete # technology # eDuipment.

orn out control systems

ith state of the art

A3ST2M po e rhydro can ork to de,elop # impliment refur+ishment projects. They ha,eK 7:tensi,e e:perience in condition assessment of hydropo er plants produced +y ,arios manufacturers throghout the orld. Technical centers for tur+ines, generators # control systems, de,eloping specific featurers for refur+ishment. 3ong9standing, full turnkey capa+ility to optimise the solutio # reduce doentime to the minimum. 7:perience in de,eloping inno,ati,e financing shcemes. A3ST2M can help to determine hether a refur+ishment makes sense +y gauranteeing the in,estment cost, output impro,eent # a reduction in operating costs. 6eeping a plant up # running at peak performance reDuires the support of a fully commited response team capa+le of a glo+al approach. Their ser,ice net ork +ached up +y alstom ser,ice centers in E( countries, can pro,ide the ser,ice team to meet their needs. A3ST2M can pro,ide tailored ser,ice packages, ranging from +asic maintenance support such as technical support # customer support line, through to training, a mintenance engineering, condition monitoring, full relia+ility package, total maintenance # full operation # maintenance. These ser,ice packages can +e tailored # included in a long term ser,ice agreement to suite specific reDuirements. Their scope of supply oncludes all ser,ices # eDuipment hich constitute the elctrical # machanical systems. A3ST2M also pro,ides core competencies in control systems for all types of hydropo er plants in order to optimise po er production. Ad,anced systems na,e +een specielly de,eloped for reha+ilitation. They ha,e installed more than '%( systems orld ide includingK Medium # large Small # mini9hydro Automatic ,alley control A3ST2M po er can pro,ide generators up to $((( M@A for any hydropo er application to satisfy all the customer&s reDuirements. -ith uniDue features such as the o+liDue elements # supported +y technology canter in Birr, S it;erland, their product range ena+les their clients to achie,e high efficiency rates for +oth ne # refur+ishment projects, includingK 3arge # small hydro generators Small generators Po erformer Diesel generators

7:citation systems

Po erformer is an inno,ati,e ne generator concept already in operation hich produces po er directly to the high ,oltage po er line ithout the need for a step up transformer. A3ST2M po er has o,er 'F(((( M@A of hydro generators installed throughout the orld. A3ST2M po er pro,ides a full range of hydro tur+ines up to B(( M- in order to meet all different customer&s needs. Through their refferences hich includes the orld&s most efficient machines # our technology center in Greno+le, 4rance, continue to de,elop effecti,e solutions in terms of cost, technology # en,ironment for ne # reha+ilitation projects. A3ST2M is the glo+al specialist in energy # transport infrastructure. The company ser,es the energy market through its acti,ities in the fields of po er generation, po er transmission # distri+ution # con,ersion # the transport market through its acti,ities in rail # marine. 4ollo ing the sale of its electrical contracting acti,ity, finalised on '(th *uly '(($, A3ST2M has annual sales in e:cess of ''+illion euros # employs $,'(,((( people in o,er E( countries. The company is listed in the Paris, 3ondon # !e Jork stock e:changes. A3ST2M po er is one of the orld&s leading electro mechanical companies ith an annual turno,er in e:cess of $$.B+illion euros # some %(,((( people orld ide. A3ST2M po er 8ndia is engaged in design, engineering, procurement, commissioning, ser,icing # reno,ation # modernisation of total po er plants for utility # industrial users. 8t is also engaged in the de,elopment # supply of air pollution control systems # eDuipment for pollution control # con,ersion of energy. 1urrent projects under e:ecution include "a;ira, 6or+a, !ay,eli # Talcher. The company&s manufacturing facility is located at @adodara # Gujarat. The company is listed in BS7 # !S7. A +rief description of the si: +usiness segments of A3ST2M po er 8ndia limited is gi,en +elo K 1. G!+ ?;!",+ @-+("$++ The gas plants +usiness of A3ST2M po er 8ndia limited along ith head centre offers a comprehensi,e range of en,ironmental friendly solutions ith gas tur+ine +ase po er plants using highly efficient # relia+le gas tur+ines generating electricity at plant efficiencies up to %AH. A3ST2M po er has made su+stantial contri+ution to the de,elopment of 8ndia&s po er generating capa+ilities in the gas tur+ine com+ined cycle market. 8t has +uilt nearly $A(M- of com+ined cycle po er plants for 8ndia&s +iggest utility !TP1. 8t has +uilt # put into successful operation 8ndia&s first 8PP G@6 *egurupadu ')%M- com+ined cycle po er plant # is currently commissioning a $<%.$ M- com+ined cycle plant for Gujurat State 7nergy 1orporation. 1ompany has recently signed contract to engineer, procure # construct second phase of

*egurupadu 11PP of G@6 industries. Apart from this the company is pursuing se,eral other projects. 2. S,$!> @-+("$++ The steam +usiness of A3ST2M po er 8ndia limited along ith its lead centre designs # supplies completely integrated # cost efficient steam po er plant solutions, including engineering # project implementation. This comprehensi,e approach to plant +usiness is +ased on our ,ery +road scope of products # ser,ices. A3ST2M po er offers the complete range of large reheat # non9reheat of steam tur+ines, condensing # +ack9pressure up to $%(( M-. Se,eral modular product families are a,aila+le to meet e,ery need. A3ST2M po er tur+o generators can +e pro,ided for +ase load, cycling or peak load applications, up to $A(( M@A ith air, gas= ater cooling, depending on the rating. 5ecently progress has +een made in further de,elopment of air9cooled tur+o generators, hich can no +e offered for applications up to )%( M@A. The tur+o generators are designed to meet the most stringent reDuirements that clients can e:pect in terms of a,aila+ility, maintaina+ility, efficiency # en,ironmentally sound production processes. 8n 8ndia the company has a team of e:perienced # dedicated engineers ho can pro,ide the entire range of ser,ices in engineering, project management, supply management # erection of the plant for the ci,il, mechanical # electrical components. The company is e:ecuting 8ndia&s first coal +ased 8PP i.e. '%( M- 3ignite 4ired Po er Plant /34PP0 at !ay,eli in Tamil !adu. The company is pursuing se,eral other projects. 2. I".-+,%(!; ,-%@("$ +$#>$", 8ndustrial tur+ine segment caters to the po er generation # prime mo,er steam tur+ine reDuirements up to $(( M- # gas tur+ines up to %( M-. Backpressure # condensing steam tur+ines to meet ,aried configurations as per customer needs are designed +y the unit # manufactured at Baroda factory ith assistance from lead centres hene,er reDuired. 7Duipment like generators, condensers, heaters, electric panels # associated su+9 systems are also purchased, integrated # supply to gi,e a consolidated solution to the customer. 8n 8ndia, there are o,er '%( installations of industrial steam tur+ines # associated eDuipment supplied +y the unit. 4. H<.%) ?)B$% +$#>$", A3ST2M po er 8ndia limited along ith its lead centre undertakes turnkey hydro projects including the supply of hydraulic tur+ines # pimp tur+ines,

hydro generators # generator motors, generators for diesel applications # gates of all ranges. 8n each of our product areas e pro,ide leading edge technologies like Po erformer9 a ne high ,oltage generator concept, hich eliminates the need for step9up transformer. A3ST2M po er 8ndia limited has a ,ery strong presence in 8ndia in the hydro po er sector. They are the pioneers in introducing latest technologies in 8ndia in terms of control systems, tur+ines # generators. The latest unit capacity hydro plant in 8ndia 6oyna9 8@ FU'%( M- is supplied +y A3ST2M po er. The company has also recently secured a contract from !"P1 for supply of 7#M eDuipments for FUEA.% MDhauliganga "ydroelectric Project. 8n line ith go,ernment initiati,es in promoting small hydro po er plants, company has started manufacturing small hydro tur+ines at its @adodara orks. A3ST2M po er 8ndia can offer to its customers hydro po er plants +ased on pelton, francis, el+o # pit type kalpan tur+ines. 6. E"'(%)">$", =)",%); +$%'(=$+ A3ST2M po er 8ndia has +een acti,e in the field of en,ironment protection since $B<(s. today the company is +een recognised as a leading organi;ation in the de,elopment # manufacture of air pollution control, resource reco,ery # conser,ation of energy. The +road spectrum of products # systems includes electrostatic precipitators, fa+ric filters, flue gas cleaning system, scru++ers etc. The products # systems also include ash handling plants for cooled fired +oilers hich includes +ottom ash, ash from economiser # air pre9heating # fly ash from 7SP&s or fa+ric filters. 8. C-+,)>$% +$%'(=$ +$#>$", A3ST2M po er 8ndia limited ith its comprehensi,e ser,ice organi;ation has the capa+ility in e,ery aspect of po er plant ser,ice. This co,ers the complete range of steam po er plants, industrial po er plants, gas # com+ined cycle po er plants # hydroelectric po er plants. The ser,ice range from traditional spare part handling # field ser,ice support of indi,idual po er plant components up to # include full po er plant management. 8n9house e:pertise is a,aila+le for all technologies # components in po er generation including9 +oiler, tur+ine generator, +alance of plant, controls # electrical eDuipment # en,ironmental eDuipment. 8n order to +e closer to the customer # ser,e him +etter, customer ser,ice segment in 8ndia has a net ork of ser,ice representati,e spread all o,er the

country. 5epair centres at @adodara can repair steam, gas tur+ines # generators. A3ST2M po er 8ndia has esta+lished manufacturing # ser,ice facilities at @adodara. The company supplies industrial steam tur+ines for ,arious industries, heat e:changer eDuipments for po er plants, mini hydro tur+ines # components for hydro sector, ser,ice # repairs for steam tur+ines # generators for utilities # capti,e po er plants. The factory does heat e:changer engineering, hea,y fa+rication, machining # assem+ly of components.

SUMMER TRAINING PROJECT

FORECASTING OF HYDRO-ELECTRIC PROJECTS BY N.H.P.C.


ABOUT N.H.P.C.
H0ATER PO0ER FOR SUSTAINABLE SOCIO-ECONOMIC DE4ELOPMENT 5 NATION BIULDINGI this is hat NHPC +elie,s. !"P1 as incororated in the year $BE% ith an authorised capital of 5s. '((( Millions. 8t is the single largest po er utility in 8ndia ith e:perience, e:pertise # capa+ilities to undertake multidimentional acti,ities such as planning, sur,ey # in,ertigation, design # engineering, construction, operation # maintenance, reno,ation, modernisation # upgrading of hydroelectric projects, a Mconcept to commissioningN endea,or. 8ts achie,ements include an installed capacity of '$E% M-, another ')E( Munder construction # more than '(,((( M- under sur,ey # in,estigation. 8n terms of performance as per M2? signed ith ministry of po er, !"P1 achie,ed a distiction of eight successi,e e:cellent rating. 8t has got 8S2 B(($ # 8S2 $F(($ certification for its operations at corporate office. 8t has got an authorised capital of 5s. E(,((( Millions. !"P1 has also got the Go,ernment of 8ndia&s appro,al for increasing the authorised share capital to 5s. $((,((( Millions. 8t has in,estment +ase of o,er 5s. $%%,((( Millions # paid up capital of 5s. <',E(B Millions. 8n terms of in,estment !"P1 is one of the top ten companies in the country. During the Oth fi,e year plan, it has hydro capacity addition of F)%E M-. Tentati,e allocation of 5s. )'''<( Millions +y planning commission for Oth fi,e year planL an increase of %((H in comparison to 8:th fi,e year plan. 5egarding performance it is said that it has registered net profit of 5s. F,E(B Millions, highest e,er profit made since its inception. Sales turno,er is +een found to +e of 5s. $),FB< Millions. They ha,e declared a di,idend of 5s. %(( Million. 8t has generated AB$'.'B M? during the financial year '(($9'(('. An e:pert in the arena of hydro po er de,elopment !"P1 has e:perience of o,er 'E years. 8t has consultancy ser,ices to other agencies=organisations, +oth in pu+lic # pri,ate sector. 8t has achie,ed ne consultancy assignments tottaling of 5s. $E$.A( Millions. !"P1 is a registered consultant in the area of hydro po er ith orld +ank, Asian De,elopment Bank, African De,elopment Bank # 6u ait 4und for Ara+ 7conomic de,elopment.it has a leading consultancy to ,arious

organisations in the field of engineering geology, geo physics, construction material # design of hydro electric structures. !"P1 has a multidisciplined interacti,e design di,ision, ell eDuiped # capa+le of handling intricate design of all the structures associated ith hydro po er projects from concept to commissioning, operation # maintenance. They are specialised in the field of engineering geology, geo9physics # construction material, ell eDuiped # capa+le of handling sur,ey # in,estigations of hydroelectric projects # preparation of DP5 in record time. Go,ernment of 8ndia accorded appro,al for e:ecution of 8ndira Sagar hydro electric project # 2mkaresh ar hydro electric project +y !armada "ydroelectric De,elopment 1orporation, a joint ,enture company of !"P1 # Go,ernment of Madhya Pradesh. 8t has successfully commissioned De,ighat hydro electric project in !epal in $BAF in a record time of three # a half years. 8n the successful commission, e can count !u akot 5ural 7lectrification project in !epal co,ering <F ,illages along ith su+9stations # connecting lines one year ahead of schedule. 8t has ,ery successfully commissioned 6urichu hydro electric project # !ganglam Tinti+i Gelephu Single 1ircuit $)' 6@ transmission line on turnkey +asis for 6urichuProject Authority, Go,ernment of Bhutsan, ahead of schedule.

FORECASTING
4orecasting is the art # science of predicting future e,ents. Although accurate forecasting has al ays +een important for managing organisations, it has +ecome e,en more so in recent years. As markets # organisation ha,e +ecome larger # more comple: # as change occurs more rapidly, the time fram for making decisions has decreased # the conseDuences of making poor decisions ha,e +ecome more se,ere. As a result, the forecasting process must +ecome more systematic # accurate. 4orecasts are usually classified into one of three forecasting time hori;onsK Short term forecasting 8ntermediate term forecasting 3ong term forecasting 1. SA)%, ,$%> /)%$=!+,("# Short term forecasts usually look not more than three months ahead. These forecasts are used for tacticle decision making, such as jo+ seDuencing # production scheduling, machine assignments, personnel scheduling, purchasing # in,entiry planning # maintenance planning. As such these forecasts tend to +e for narro or specific entities such as demand for a specifis good or ser,ices. Because

of the narro focus # the shorty time inter,als+et een forecasts, short term forecasts are usually o+tained using simple statistical methods. 2. I",$%>$.(!,$ ,$%> /)%$=!+,+ 8ntermediate term forecasts ha,e a time frame of three months to t o years, ith )9$' months +eing the most common period. These forecasts are most commonly used for aggregate production planning, including decisions that alter short term capacity such as su+contracting # o,ertime. Some personnel planning such as to hire ne orkers, in contrast to actual employee scheduling, # logistical planning decisions also use these forecasts. These are usually made for aggregate entities such as all the products of some type or made +t some facility rather than for indi,idual products. 2. L)"# ,$%> /)%$=!+,+

3ong term forecasts usually ha,e a time frame of t o to fi,e years. There most common use is for planning the introduction of ne products # major capital e:penditures such as ne facilities or capacity e:pansion. 3ong term forecasts are usually made for aggregate entities or e,en macroeconomic phenomenonsuch as industry ide sales or gross national product. 4orecasting of hydro9electric projets +y !"P1 comes under long term forecasting hich is of fi,e years forecasting.

PLAN 0ISE FORECASTING


PROJECTS UNDER 9,A PLAN 2002 : 2007&

PROJECTS Dulhasti 1hamera988 Dhauliganga Teesta9@ 8ndira Sagar Se a9 88 Teesta 3o Dam9888 2mkaresh ar Purulia Ba,9 88 Teesta 3o Dam98@

CAPACITY M0& )B( )(( 'A( %$( $((( $'( $)' %'( B(( )E $<A

PROJECTS UNDER 9(,A PLAN 2007 : 2012&

PROJECTS

CAPACITY M0&

Par+ati9 88 3oktak D=S Su+ansari 3o er Par+ati9 888 1hamera9 888 Siang Middle Su+ansari ?pper Su+ansari Middle Pakal Dul Bursar ?589 88 !immo Ba;go Ba,9 8 1hutak Di+ang ?pper 6rishna

A(( B( '((( %'( ')$ $((( '((( $<(( $((( $('( 'A( F% $A $A )((( A$(

PROJECTS UNDER 9II,A PLAN 2012 : 2017&

PROJECTS

CAPACITY M0&

?pper Siang 3o er Siang

$$((( $E(((

SRAGE0ISE FORECASTING
PROJECTS UNDER 9,A PLAN 2002 : 2007&

PROJECTS UNDER CONSTRUCTION Dulhasti /)B( M-0

PROJECTS UNDER GO4ERNMENT SANCTION Se a9 88 /$'( M-0

PROJECTS UNDER DPR STAGE Ba,9 88 /)E M-0

1hamera9 88 /)(( M-0

Teesta 3o Dam9 888 /$)' M-0 2mkaresh ar /%'( M-0

Teesta 3o Dam9 8@ /$<A M-0

Dhauliganga9 8 / M-0

Teesta9 @ /%$( M-0

Purulia pss /B(( M-0

8ndira Sagar9 /$((( M-0

PROJECTS UNDER 9IA PLAN 2007 : 2012&

PROJECTS PROJECTS UNER UNDER CONSTRUCTION GO4ERNMENT SANCTION Par+ati9 88 Su+ansari 3o er /A(( M-0 /'((( M-0 3oktak DS /B(( M-0

PROJECTS UNDER DPR STAGE Par+ati9 888 /%'( M-0 1hamera9 888 /')$ M-0 Siang Middle /$((( M-0 Pakal Dul /$((( M-0 Bursur /$('( M-0 ?589 88 /'A( M-0 !immo Ba;go /F% M-0 Su+ansari ?pper /'((( M-0 Su+annsari Middle /$<(( M-0

PROJECTS UNDER STAGE- I FR& STAGE Ba,9 8 /$A M-0 1hutak /$A M-0 Di+ang M-0 /)(((

?pper 6rishna /A$( M-0

PROJECTS UNDER 9II,A PLAN 2012 : 2017&


2nly t o projects are there under O88th plan under 45 stage. Those areK ?pper Siang /$$((( M-0 3o er Siang /$E(( M-0

SOURCES OF FUNDS

9 PLAN 9I PLAN 9II PLAN TOTAL EGUITY $F'(( $%)E( A((% '%A F'FA$ <<$$F !A $$($< !A $B$(B )($'% 'B%E( '($A( E'A EEBAE $'AF<%

INTERNAL RESOURCES $$%B DE4ELOPMENT SURCHARGE BONDS/LOANS/DFL TOTAL FE( $<)BE )'''<

BID OF KAMENG HYDROELECTRIC PROJECT


A +id can also +e called as a tender. A tender is made +y a committee. A tender oriented committee defines the trends allo ing clients technical # economical reDuirements to +e satisfied. 8t ,erifies the tender prepared +y the tender teams. 4or simple projects, these responsi+ilities de,elop on the Tender Project manager. The sales manager are responsi+le for the negotiations ith the client # check contract for confirmity ith the tender. They su+mit disrepencies to the authorised entities, as # here aplica+le. 2ther re,ie s ena+le a constant control at all stages of a contract. This system of re,ie s is adapted depending upon the comple:ity of e,ery contract.

MARKET PLAN
Before preparing a tender, the company has to make sure of the place hare the project has to +e commissioned. They, first of all ha,e to prepare aplan for the tender, hich generally is kno n as marketing plan. 4e of the marketing plan hich the company has to keep in mind hile preparing a plan are as follo sK9 G)'$%">$", ?);(=($+ The company has to make sure of the go,ernment policies of the place her the project has to +e commissioned. The ta: structure, the e:port import duty charges # so on. C)>?$,(,)%+ 1ompetition +egins right from the +eginning of the in,itation for the tenders to all different agencies all o,er the orld. The has to make the tender keeping in mind the points hich the competitors can also put in their o n respecti,e tenders. -e ha,e to supply the latest technology at the lo est possi+le price ith up to the mark Duality. C;($",+ Before accepting the in,itation of the tender e ha,e to ha,e a thorough kno ledge of the client for hom e ill errect the project. The main point is to kno a+out their financial +ackground heather they ill +e a+le to pay the reDuired amount on time or not.

D$>!". 5 +-??;< -hat is the e:act demang of the client, hat they e:actly ant.this has to keep in mind. -e ha,e to fulfil their reDuirement +y supplying their demand. 4uture demand can also +e forecasted to ha,e an ease of supply. Demand can +e calculated +y keeping in consideration the consumption, in,estment, Go,ernment e:penditures # the net e:ports. A==$?,!"=$ )/ ,A$ ?%).-=, @< ,A$ ;)=!; ?$)?;$ The product hich the company is going to launch, heather it ill +e going to +e accepted +y the local people or not9 this has to +e make sure +efore doing that. ithout the acceptance of the local people, it ill +e ,ery difficult to successfully accomplishment of the project. B-<("# >),('$+ The product for hich the project is to +e commissioned, heather the customers ill +uy the same product or not9 this has to keep in mind. A.'$%,(+("# 5 ?-@;(=(,< The product should +e ad,ertised # pu+licity should +e made through the help of meedia # personnel selling. S!;$+ ?%)>),()" Ad,ertising # pu+licity should +e made for the sales promotion. Sales promotion is made for the successful sales of the product # to place the product in the su+concious mind of the customers +efore launching the product into the market. E"'(%)">$",!; +=!""("# 7n,ironmental scanning can also +e related to the +uying moti,es of the customers. Before ad,ertising, pu+licity, sales promotion etc. the en,ironment shoulg +e scanned thoroughly so that the product could +e launched properly. S$#>$",!,()" )/ ,A$ >!%E$, Market should +e di,ided geographically, demographically etc.-hich place or hich age group of people are ha,ing more demand of the particular product, it should +e kno n properly.

S?$".("# =!?!=(,< )/ ,A$ =)"+->$% A product couldnot +e successful if the consumer do not ha,e enough of spending po er. Spending po er could +e decided on the +asis of the income of the consumers. C)+, )/ ,A$ ,$".$% !o coming to the tender, e must keep the cost of the tender as lo as possi+le. But this doesnot mean that e should forget our profit margin. -e should keep cost as lo so that the Break 7,en Point is reached. Side +y side e must ensure the right Duality of product # on time completion of the project.

KEY SUCCESS FACTORS FOR TURNKEY CONTRACTING


The success factors follo sK9 hich must +e considered for the turnkey contracting are as

TA)%)-#A E")B;$.#$ )/ ,A$ ?%)C$=, Before taking up the project, the company must ha,e thorough kno ledge of the same. *ust like a layman ill not +e a+le to do any technical ork, similarly the company hich donot ha,e a clear picture of the project ill not +e a+le to accomplish the project successfully. The company must ha,e the technical department # technical men along ith them. -hich machinary ill +e reDuired at hat part of the project, ho much capacity # all such technical details must +e a,aila+le ith the company. A'!(;!@(;(,< )/ ,A$ %$D-(%$. (,$>+ The company must ha,e reDuired items for the project in hand so as to ease of supply as reDuired. Because of this reason, market plan is +een formulated here the demand is +een forecasted. S)-". /("!"=(!; @!=E#%)-. !ot only the client must ha,e a sound financial +ackground +ut also the company should ha,e a sound financing system. 8n fact it ill +ecome the main criteria to in the tender. EJ?$%($"=$ )/ =)>>(++()"("# +(>(;!% ?%)C$=,+ The company hich is going to commission the project must ha,e an e:perience of commissioning a similar type of project earlier so that they can ha,e an e:perience of ho to accomplish the project successfully in time. G)). /%$D-$"=< )/ +-??;< -hene,er the demand ill +e there, supply should +e there immediately. 8t is the key factor for the success of the project. 8f the supply is good the project could +e completed on time. P)B$% )/ !,,)%"$< The person ho is handling the project should ha,e full po er of controlling the project. -here,er # hene,er necessary decission is to taken, he could

easily take such decisions starting from the appointment till the termination of a person. L$#!; .)==->$",+ All the legal doccuments should +e there attached ith the tender. 3egal doccuments such as po er of attorney from the 1hairman, Bank statements, 8ncome Ta: clearance certificate, if the company is a joint ,enture9 joint ,enture agreement etc.

STRATEGY FOR 0INNING A BID


The concept of strategy is central to understanding the process of strategic management. The term strategy is deri,ed from the Greek ord MStrategosN, hich means generalship9 the actual direction of military force, as distinct from the policy go,erning its deployment. Therefore, the ord strategy literally means the art of the general. 8n +usiness parlance, there is no definite meaning assigned to strategy. 8t is often used loosely to mean a num+er of things. 4or many companies, a single strategy is not only inadeDuate +ut also inappropriate. The need is for multiple strategies at different le,els. 8n order to segregate different units or segments, each performing a common set of acti,ities, many companies are organised on the +asis of operating di,isions or simply di,isions. These di,isions may also +e kno n as profit centers or Strategic Business ?nits /SB?0. An SB? is any part of a +usiness organi;ation hich is treated separately for strategic management propose. Generally, SB?s are in,ol,ed in a single line of +usiness. A complementary concept to the SB?, ,alid for the e:ternal en,ironment of a company, is a strategic +usiness area /SBA0. 8t is defined as Ma distincti,e segment of the en,ironment in hich the firm does /or may ant to do0 +usinessN. A num+er of SB?s, rele,ant for different SBAs, form a cluster of units under a corporate um+rella. 7ach one of the SB?s has its o n functional reDuirements, or a fe measures functional departments, hile common functions are grouped under the corporate le,el. T o types of le,els are depicted. 2ne relates to the organisational le,els # the other to the strategic le,els. The organisational le,els are those of the corporate, SB? # functional le,els. The strategic le,els are those of the corporate, SB? # functional le,el strategies. 1orporate le,el strategy is an o,er arching plan of action co,ering the ,arious functions performed +y ,arious SB?s. The plan deals ith the o+jecti,es of the company, allocation of resources # co9ordination of the SB?s for optimal performance. SB? le,el /or +usiness0 strategy is a comprehensi,e plan pro,iding o+jecti,es for SB?s, allocation of resources among functional areas # co9ordination +et een them for making an optimal contri+ution to the achie,ement of corporate le,el o+jecti,es. 4unctional strategies deals ith a relati,ely restricted plan pro,iding o+jecti,es for a specific function, allocation of resources among different operations ithin that

functional area # co9ordination +et een them for optimal contri+ution to the achie,ement of SB? # corporate le,el o+jecti,es. Apart from the three le,els at hich strategic plans are made, occasionally companies plans at some other le,els too. 4irms often set strategies at a le,el higher than the corporate le,el. These are called the societal strategies. Based on a mission statement, a societal strategy is a generalised ,ie of ho the corporation relates itself to society in terms of a particular need or a set of needs that it stri,es to fulfill. 1orporate9le,el strategies could then +e +ased on the societal strategies. Some strategies are also reDuired to +e set at lo er le,els. 2ne step do n the functional le,el, a company could set its operation9le,el strategies. 7ach functional area could ha,e a num+er of operational strategies. These ould deal ith a highly specific # narro ly defined area. 4or instance , a functional strategy at the marketing le,el could +e su+ di,ided into sales, distri+ution, pricing, product # ad,ertising strategies. Acti,ities in each of the operational areas of marketing, eather sales or ad,ertising could +e performed in such a ay that they contri+ute to the functional o+jecti,es of the marketing department. The functional strategy of marketing is interlinked ith those of the finance, production # personal departments. All these functional strategies operate under the SB? le,el. Different SB? le,el strategies are put into actions under the corporate le,el strategy hich, in turn, is deri,ed from the societal le,el strategy of a corporation. 8deally, a perfect match is en,isaged among all strategies at different le,els so that a corporation, its constituent companies, their different SB?s, functions in each SB?s # ,arious operational areas in e,ery functional areas are synchronised. Percei,ed in this manner an organi;ation mo,es ahead to ards its o+jecti,es # mission like a all oiled piece machinery. Such an ideal, though e:tremely difficult9 if not impossi+le of attainment P is the intent of strategic management. 4e of the srategic points to in a strategy are as follo sK9 O'$%=)>$ ,A$ +A)%, ,$%> =%(+$+ Short term crises can +e remo,ed +y immediate supply of the reDuirements of the client. The company must ha,e reDuired items for the project in hand so as to ease of supply as reDuired. F)%$=!+, ;)"# ,$%> .$'$;)?>$", The company must foresee the future reDuirements of the clients also. The technical eDuipments # such machineries should +e arranged +eforehand in the present hich could +e reDuired in the long run. C)+,

1ost of the tender should +e kept as lo as possi+le. But the profit structure should not +e a,oided keeping in mind the Duality of the product.

C)>>(,>$", 2perational managers should prepare themsel,es to +e committed to ards their jo+. They should de,ote themsel,es to ards the project that they are going to commission. F;$J(@(;(,< The company should ha,e enough choice so as to o,ercome the reDuirements of the client. 4le:i+ility should +e there in the products also. 8f the client donot ant a particular product, the company must +e a+le to pro,ide its su+stitute. I"/)%>!,()" All the detailed information should +e mentioned in the tender. 8nformation regarding the ay of errecting the project, machineries, legal documents # so on. F(,"$++ )/ ,A$ +,%!,$#< The strategy should +e made in such a ay that it should match the present # future en,ironment of the corporate as ell as of the site. Strategy should match the present en,ironment of the corporate # should match the future at the site. O'$%=)>$ ,A$ ,A%$!,+ ?)+$. @< ,A$ =)>?$,(,)%+ The company should al ays +e ready ith the threats posed +y the competitors. 1ompetitors may Duote fe points hich may suite the client +ut may not suite the company. 8n such a case, the company should try to adjust ith the situation # Duote points in fa,our of themsel,es. T$=A");)#< The company should use the latest technology in the machineries. They should also mention the details of the tachnologies to +e used in the project.

HO0 STRATEGIES COULD BE MADE TO 0IN THE ORDER


The a+o,e strategies could +e made in such a ay that it should make sure that it ould in the +id amongst all the competitors. 4e of the ays to make the strategies are as follo sK9 Short term crises could +e o,ercome immediate supply of the reDuirements of the client. The company must ha,e reDuired items for the project in hand so as to ease of supply as reDuired. 4orecesting of the longterm de,elopment can +e done +y foreseeing the future reDuirements of the clients also. The technical eDuipments # such machineries should +e arranged +eforehand in the present hich could +e reDuired in the long run. 1ost of the tender should +e as lo as possi+le keeping in mind the profit structure # Duality aspect of the products. Bt keeping the profit structure just a+o,e $H a+o,e of the +reak 7,en Point offering a considera+le Duality le,el e can keep the cost lo . The company should appint dedicated managers into the project ho are technically ell sound. Those nmanagers prepare themsel,es to +e committed to ards their jo+. They should de,ote themsel,es to ards the project that they are going to commission. By keeping the fle:i+ility of the items the company copuld o,ercome the reDuirements of the clients. 4or e:ample if the company donot ant item A, the company could a+le to pro,ide item B. Strategy should +e made in such a ay that it should suite +oth the parties9 the client as ell as the company. 8t should match the present # future en,ironment of the corporate as ell as of the site. Strategy should match the present en,ironment of the corporate # should match the future at the site. The company should ha,e the a+ility to assume the points that the competitors could Duote into their tender. 1ompetitors may Duote fe points hich may suite the client +ut may not suite the company. 8n such a case, the company should try to adjust ith the situation # Duote points in fa,our of themsel,es. Accordingly they can make their tender.

COMPETITI4E MAPING
1ompetiti,e maping is a tool ith the help of hich the company could a+le to o,ercome its eakness # can check its position in the market. The charecteristics hich the company feel that it is most important for them may not +e important for the client # they can concentrate to the important charecteristics hich is important according to the client. A format of competiti,e maping is gi,en +elo as an e:ampleK9 CHARACTER- COMPANYFS CUSTOMERFS IMPORTANCE ISTICS POINT OF POINT OF OF OF A 4IE0 4IE0 IMPRO4EMENT COMPANY CUSTOMERS& "igh Quality ) ' 3 "igh 1ost 3o 1ost Good 1ustomer 5elation Strong Marketing 2 n Plants Good 4reDuency 2f Supply 4le:i+ility Punctual Good 5eputation Sound 4inancial Background RATINGS 1: HIGHLY PREFERABLE 11: EAST PREFERABLE F $$ E % A B $( < ' $ $$ $ % F E A B ) < $( 3 " M 3 3 3 3 M 3 3 AFFORDIBILITY COMPANY& M 3 " 3 3 3 3 3 3 3 3

L: LO0 M: MEDIUM H: HIGH

DESCRIPTION 5 APPROACH TO THE PROJECT AREA


6ameng hydroelectric project is a run off the ri,er scheme, situated at the do nstream of the confluence of the ri,ers Bichom # 6ameng in -est 6ameng district of Arunachal Pradesh. The 6ameng hydroelectric project as in,estigated +y 1entral -ater 1ommission /1-10 in Decem+er, $BB< # detailed project report as prepared in $BEF. 4urther in,estigation of the project as taken up +y 1-1 # after completion of further in,estigation a re,ised proposal as su+mitted to !orth 7astern 1ouncil /!710 +y 1-1 in $BA' en,isaging installation of <(((M- capacity to generate )%B' million units in a B(H dependa+le year. 8n *anuary, $BA%, !77P12 as identified as the e:ecuting agency of the project. M2? +et een Go,ernment of Arunachal Pradesh # !77P12 as signed on )$=()=$BBB. Project renie studies ere started in the middle of year $BBB. The scheme en,isages construction of t o di,ersion dams, one each on ri,er Bichom # Tenga ri,er, for di,erting a total of $F( cumec of ater for po er generation. Both these dams are proposed to +e of concrete gra,ity type ith central spill ay # ill ha,e ma:imum hieghts of around E%m # '%m respecti,ely. The ater conductor system comprises appro:imately a $F.% 6m long head race tunnel, surge shaft # an underground penstock system. The po er house is located on the right +ank of the 6ameng ri,er. All the component sites of the project are approcha+le ,ia Blipara hich is )< 6m from Te;pur on national high ay no. %'. The present headDuarters of the project is at Bkalukpung hich is 'F 6m from Balipara # also is the nearest railhead for the project.the road distances to Bhalukpung from Te;pur # Gu ahati are <(6m # ')% 6m respecti,ely. Gu ahati is the gate ay to the !orth 7ast ith its air ay # +road guage rail ay station con,eniently connecting other regions of 8ndia. Te;pur lies on the !orth Bank of the ri,er Brahmaputra, $E% 6m. 4rom Gu ahati. The nearest airport to the project site is at Te;pur, connecting mainly 6olkata # *orhat.

BIDDING PROCEDURE
P-%?)+$ The o+jecti,e of this procedure is to define # document the process to +e follo ed in identifying, screening # selecting the +usiness opportunitiesfor hydro po er plant eDuipment # projects +oth ne # reno,ation # modernisation of old projects that ma:imise the chances # the degree of the company success. 8t also measures that the customer reDuirements are mutually agreed upon # a systematic re,ie # finalisation of the contract results in a highly effecti,e # efficient contract documentfor project implimentation ith risks accepta+le to the company. P%)=$.-%$ The ,ariation process of the sales process areK Pre9acDuisition

Bidding

Bid 7,aluation

A ard

Start of 7:ecution O'$%'($B

The sales # tendering process are descri+ed +y the follo ing phasesK

P%$-!=D-(+(,()" ?pon getting information regarding a prospecti,e opportunity, the prospecti,e customer shall +e contacted ith a ,ie to ascertain hether this prospect could +e a potential opportunity. B(..("# PA!+$ 8f the decision is to su+mit a +id, the unit head shall nominate a sales manager. Sales manager gi,es the rele,ant information regarding the project to tendering group. "ead of tendering group nominates a proposal manager from the tendering function, ho shall +e responsi+le for the preparation of the tender for this project. Proposal manager shall co9ordinate ith the project engineering for the project. Proposal manager shall send general information a+out the project to concerned functional units. 4or small hydro projects of rating less than $% M- # +udget proposals sending general information to concerned functional units. The sales manager along ith mem+ers of the consortium shall +e responsi+le for leading the com+ined sales effort. The sales manager shall finalise the consortium agreement, including the D2- in consultation ith proposal manager # other functional groups as deemed necessary. The proposal manager shall finalise the +id structure # +id preparation schedule. The proposal manager shall +e responsi+le for securing any spacial support that may +e reDuired in connection ith the AP scope of ork for the +id such as legal, financial matters # project insurance. The sales manager shall prepare price calculations for the +id # ill suita+ly do the +id analysis taking into account the information recei,ed from proposal manager # other sources. 8n cases of +id su+mitted +y AP in consortium ith other A3ST2M Po er group companies, the project +id appro,al shall +e taken +y the leaderof consortium, ho e,er the rele,ant information shall +e su+mitted +y AP. 4or +udget proposals, +id analysis as per a+o,e formats is not necessary. The proposal manager shall +e responsi+le for the completion of the +id in the manner specified +y the customer # its timely su+mission. All +ids shall +e distinctly num+ered.

B(. E'!;-!,()" PA!+$ The sales manager shall +e responsi+le for co9ordination ith customer during the +id e,aluation phase # keep all concerned adeDuately informed during the phase. Any certification or Dueries from client shall also +e replied ith stipulated time. The sales manager shall closely follo up the customer during the e,aluation process. -here,er possi+le project manager shall +e appointed +y unit head prior to the start or during contract negotiation, ith a ,ie to gain a +etter understanding of contract. The proposal manager in co9ordination ith project manager, shall incorporate suita+ly into the contract document the scope # time of purchaser&s inputs. At this stage it shall +e ensured that any difference +et een reDuirements as per tender documents # contract made are mutually resol,ed. S,!%, )/ EJ$=-,()" After confirmation of the customer&s order, the proposal manager shall compile # deli,er the documents to project manager for e:ecution. The proposal manager shall slao organisea handling o,er meeting ith project manager to +rief them on the project, the salient features # any special issues. Mem+ers of concerned functional units ho ere in,ol,ed in the +id su+mission # negotiation may also participate in the meeting, to clarify major open issues. A check list shall +e prepared +y proposal manager for the handling o,er the documents to project manager. TA$ ?%)=$.-%$ BA(=A (+ >$",()"$. @$;)B (+ /)% ,A$ K!>$"# H<.%)$;$=,%(= P%)C$=,. Bidding shall +e in t o stagesK STAG7 8

8n first stage ther ill +e short listing of prospecti,e +ideers. 1ost of +id doccument of each package is 5s. $(,(((=9 /G'%( ?S0 STAG7 88 4irst stage Dualified shortlisted +idders shall +e intimatted indi,idually # on their reDuest along ith necessary draft for cost of 'nd stage +id document package ise shall su+mit their +id in y o en,elop system as follo sK 7n,elop num+er $K 7MD # Techno9commercial +id 7n,elop num+er 'K Price Bid

8n 'nd stage, cost of +id document is 5s.'(,(((=9 /G%(( ?S0 for each package. 2n the notified date, en,elop num+er $ ill +e opened # proce +iid for those ho are found to +e Dualified for techno9commercially including 7MD, shall +e opened on another notified date. Details of packages are as follo sK Package 8K 1onstruction of Bichom Gra,ity Dam, Di,ersion Tunnel, Tunnel intake # the main Tunnel su+ject to ,ariation upto %(( M either ay. Package 88K 1onstruction of Tenga 1oncrete Gra,ity Dam, Di,ersion Tunnel, main Tunnel su+ject to ,ariation upto %(( M either ay. Package 888K 1onstruction of main Tunnel, Surge Shaft, ci,il house # Tail 5ace. Package8@K Design, 4a+rication, 7rection # 1ommissioning of Penstock Steel 3iner # all of the hydro9mechanical orks=eDuipments. Package @K All electro9mechanical orks in po er house including supply, errection, testing # commissioning of Generators, Tur+ines, Transformers, etc. Bid is open to firms # ,oluntarily formed joint ,entures from any country in the orld. A joint ,enture # any of the constituent mem+ers of that joint ,enture shall not +e Dualified separately for the same ork. Application may +e made for shortlisting of prospecti,e +idders for one. T o, three, four, fi,e or all of the a+o,e packages. The reDuest for issuance of the +id document for $st stage shall ha,e to +e made separately for package9 8, 88, 888, 8@ # @. Such reDuest must accompany a non refunda+le fee of 8ndian 5s. $(,(((=9 or ?S G '%( against each package in the form of +ank draftpay+le in fa,our of !77P12 Tld., Shillong, 8ndia. orks of Pressure Shaft, Po er

The +id documents shall +e used only to those items or joint ,entures ho possess e:perience as +elo K Package 8 # 88K construction of dam # tunnel during last $( years. Package 888K construction of tunnel, po er house, shafts etc.during last $( years. Package 8@K Package @K Design, 4a+rication, 7rection # 1ommissioning of Penstock Steel 3iner # all of the hydro9mechanical orks=eDuipments. All electro9mechanical orks in po er house including supply, errection, testing # commissioning of Generators, Tur+ines, Transformers, etc.

The +id document may +e o+tained from the office of the undermentioned from a stipulated date till a particular date at a particular time through an authorised agent or !77P12 may promptly dispatch the documents +y registered airmail if sa reDuested, +ut under no circumstances !77P12 ill held responsi+le for late deli,ery or loss of the documents so mailed. Application for the +id must +e su+mitted in a sealed en,elop not later than a stipulated time # date. Applications must +e deli,ered +y hand or +y registered mail to the address gi,en +elo . 8n case of holiday the +id ill +e recei,ed in the follo ing orking day. 3ate reciept of the application for the +id either +y hand or +y ost shall +e rejected. !77P12 ill select the tenderets to +e Dualified for the 88nd stage +idding +ut ill not accept any claim regarding either the procedure or the results of the shortlisting. -ithin $A( days of the date of su+mission of application, !77P12 ill inform in riting all selected prospecti,e +idders, the names of all shortlisted applicants ithout gi,ing any reason for the decision. !77P12 reser,es the right ot reject or accept any or all applications # to annual the shortlisting process # reject all applicants, ithout there+y incurring any lia+ility to the affected applicants. All e:penses relatiing to the participation in this +id shall +e done +y the applicants # in no case ill such e:pecses +e reim+ursed. The documents su+mitted +y the applicants ill not +e returned.

The a+o,e conditions must +e send to the follo ing addressK

General Manager / 1 0 1ontracts # procurement !77P12 3td., 3o er !e 1olony Shillong9 EB)(())

LIST OF FORMS ATTACHED IN THE BID


FORM NK 1 LETTER OF INTENT TO PARTICIPATE IN THE TENDERING Dy. General Manager /701#P, !77P12 3td Brookland 1ompund, 3o er !e 1olony S"8332!G P EB)(() 4a: K B$ P ()<F P ''''%EA Telephone K B$ P ()<F P '''B)F, ''F%A' Su+ K 3etter of 8nterest to participate in the Short 3isting of Prospecti,e Bidders Dear Sir, 8n accordance ith the Short 3isting Bid Document, the underdesigned representati,eK ............................... ...... /4ull !ame and Title0 is legally authorised to act in name and on the account of the Applicant 4irm ........................... ........................... /!ame and Address of the Applicant0 1ompany K ........................... ........................... Partnership K ........................... ............................ *oint@enture K ............................ composed +y K /8n case of Partnership=*oint @enture=1onsortium0 /a0 /+0 ............................ As 3eading 1ompany ........................... and the follo ing other companies K

/c0 ............................ /d0 ............................ By means of a certified po er of attorney K ............................. ........ /Place and Date of the Po er of Attorney0 attached to these documents, the undersigned here+y reDuests to participate in the Short 3isting of Prospecti,e Bidders for Package @ 7lectro9Mechanical -orks of the 6ameng "ydro 7lectric Project in Arunachal Pradesh, 8ndia. 8t is understood and agreed that the information su+mitted therein is to +e used +y !77P12 in determining, according to their sole judgement and discretion, the Dualifications of prospecti,e Bidders to perform the ork in connection ith the 6ameng "ydro 7lectric Project. 8n consideration of +eing permitted to su+mitt his Dualifications as a prospecti,e contractor for re,ie the undersigned ai,es any claim against !77P12 that might arise ith respect to their decision as to a prospecti,e Bidder&s Dualifications. 8t is understood that the decision of !77P12, ith respect to the Dualification of any prospecti,e contractor, is final and no su+ject to appeal of any kind. A prospecti,e Bidder ill not +e considered Dualified +y !77P12 unless he possesses reputation, a+ility, e:perience, Dualified personnel, plant and eDuipment and net current assets or orking capital sufficient in the judgement of !77P12 to render it capa+le for satisfactorily completing the ork, and meet all contractual o+ligations, should the orks +e a arded to him. The signing of the 4orms +y the undersigned guarantees the truth and accuracy of all statements and of all ans ers to the interrogatories hereinafter made. The undersigned her+y authori;es and reDuests any pu+lic official, engineer, surety company, +ank, depository, material or eDuipment, manufacturer or distri+utor or any other person, firm or corporation to furnish any pertinent information in accordance ith reDuests +y !77P12 deemed necesssary to ,erify the information and assurances pro,ided +y the undersigned herein, or regarding the competence and general reputation of the prospecti,e Bidder. The undersigned agrees that further Dualifying information, if any, may +e reDuested and agrees to furnish any such information at the reDuest of !77P12.

The undersigned here+y indicates the address, in hich he esta+lishes his legal domicile, to the effects of this Short 3isting procedure, to hich !77P12 may direct his correspondence. Mail Address ........................... Tele: Address ........................... 4acsimile Address ........................... Phone !V ........................... 7 mail Address ........................... ............ /Place and Date0 .......... /The 5epresentati,e0

FORM NK 2 STATEMENT OF APPLICANT $. '. !ame of Applicant Address of "ead 2ffice Telephone !V K 4a: !V K 1a+le Address K 7 mail address K ). 5egional 2ffice Address /if any0 Telephone !V K 4a: !V K 1a+le Address K 7 mail address K F. 3ocal 2ffice Address /if any0 Telephone !V K 4a: !V K 1a+le Address K 7 mail address K

%. 3egal Status <. Place and Date of 7sta+lishment E. Applying Alone K Applying as Partner of a *oint @enture Jes=!o Jes=!o

A. Branch of Speciali;ation Main 3ines of Business K ................... !ominal 1apital 5s. /2riginal 1urrency0 .................. /7Dui,alent ?SD0

$(.

4ully Paid 1apital K

5s. /2riginal 1urrency0 ............... /7Dui,alent ?SD0

4ully Paid capital plus 5etaining 7arnings K

5s. /2riginal 1urrency0 ................ /7Dui,alent ?SD

F.

7:change 5ate Adopted for item B K ......................... !ame and Address of ......................... 3eading 1ompany /in ......................... case the Applicant is of a ......................... *oint @enture or ......................... 1onsortium /!ame and Address of "ead 2ffice0 !um+er and 1ategory of Permanent 7mployees K 5emarks K 8tem E K 8tem A K hydropo er 8tem $' K

$'.

$)

Delete the part not applica+le 4ield of acti,ities means, +ut is not limited to, plants, tur+ines, generators, cranes, s itchyard eDuipment etc. *oint @enture Agreement shall +e attached

........... /Place and Date0

.............. /The 5epresentati,e0

FORM NK 2 FINANCIAL STATUS OF APPLICANT 4ill in the +lanks for each of the last three fiscal years, each to +e certified +y 1hartered or Pu+lic Accountant or 1ham+er of 1ommerce or Banks. $. Share 1apital $BBA9BB $BBB9(( '(((9($ 0 0 '(($9(' '(('9()

/original currency K /eDui,alent in ?SD K '. Total current assets /original currency K /eDui,alent in ?SD K '.$ Total cash and deposits /original currency K /eDui,alent in ?SD K '.' Deposits ith +ids or other ise as guarantees /due ithin ninety /B(0 days0 /original currency K /eDui,alent in ?SD K '.) Amounts recei,a+le from completed contracts /due ithin ninety /B(0 days0 /original currency K /eDui,alent in ?SD K

0 0

0 0

0 0

0 0

'.F

Amounts recei,a+le from uncompleted contracts after deducting retention /due ithin ninety /B(0 days0 $BBA9BB $BBB9((

'(((9($

'(($9(' 0 0

'(('9()

/original currency K /eDui,alent in ?SD K '.% Stocks and +onds at present market ,alue /original currency K /eDui,alent in ?SD K '.< Buildings and loans at present ithdra al ,alue /original currency K /eDui,alent in ?SD K '.E 2ther current assets /due ithin ninety /B(0 days0 /original currency K /eDui,alent in ?SD K ). Total current lia+ilities /original currency K /eDui,alent in ?SD K ).$ !otes paya+les /to +anks for regular and certified checks and to others0 /original currency K /eDui,alent in ?SD K

0 0

0 0

0 0

0 0

0 0

).'

Account paya+le /original currency K /eDui,alent in ?SD K 0 0 '(($9(' 0 0 '(('9()

) .)

2ther current lia+ilities $BBA9BB $BBB9((

'(((9($

/original currency K /eDui,alent in ?SD K F. Total assets /original currency K /eDui,alent in ?SD K %. Total lia+ilities /original currency K /eDui,alent in ?SD K <. 1urrent credit resources /original currency K /eDui,alent in ?SD K E. !et orth /original currency K /eDui,alent in ?SD K A. Total profit +efore ta: /original currency K /eDui,alent in ?SD K

0 0

0 0

0 0 0 0

0 0

B. Turn o,er in financial years /original currency K /eDui,alent in ?SD K $(. 7:change rate adopted for the eDui,alent in ?SD K $$. Bank references address K ........................ /list names of institutions and ma:imum 1redit 3ine 3ine L attach respecti,e letters from sureties0 8nstitution Ma:imum Amount in ?S G ......... 6indly refer attachments............. 5emarks K 8tem $ K 8tem < K The amount for share capital include retained The ma:imum current credit resources the Applicant&s +ank/s0 hold/s0 a,aila+le for the fulfilment of the Applicant&s o+ligations for the Project if the Applicant is a arded the contract shall +e stated and certified +y the +ank. Attach respecti,e letters from +anks /Bank 1redit 3etter0 $'. 1redit 3ine 0 0

8tem $) K

.............. /Place and Date0

.............. /The 5epresentati,e0

FORM N). 4 E9PERIENCE RECORD OF APPLICANT $. Business e:perience of the Applicant as a 1ontractor under present +usiness nameK /Jears0 '. 7:perience of the Applicant in 7lectro9 Mechanical orks K As principal contractor As su+9contractor /Jears0 /Jears0

). 7:perience of the Applicant in 7lectro9mechanical orks in K /Descri+e name of project # e:ecuting agency, contract period, contract amount, mem+er of joint ,enture = 1onsortium0 /$0 8n the 8ndian 5epu+lic K ............................... /'0 7lse here /8ndicate name of the countries0 K ............................. F. !um+er of personnel engaged as 6ey 7ngineers Super,isory 7mployees of the Applicant /situation personnel As at end of Dec& '(('0 8n the 8ndian 5epu+lic '(AF $()$ $(%) /$0 7lse here K 1ountry K %. Appro:imate ,alue of electro9mechanical ork completed in each year during the past ten /$(0 years /eDui,alent in ?SD0 $BB) ........................... $BBF ........................... $BB% ........................... $BB< ........................... $BBE ........................... $BBA ........................... $BBB ........................... '((( ........................... '(($ ........................... '((' ........................... ............ /Place and Date0 ............... /The 5epresentati,e0

FORM N). 6 KEY PERSONNEL Gi,e the detailed information of key personnel from hom the 1ontractor&s 5epresentati,e could +e selected. 4ill in a form for each person. $. !ame '. Date of +irth ). !ationality 7ducation and degrees F. Speciality %. 5egistration <. Jears of e:perience E. 3ength of ser,ice ith Applicant A. 1onstruction e:perienceK ?se as many pages as necessary. /$0 !ame and country of the projectK ................................. /'0 !ame and address of o ner K ................................ /)0 !ame and address of the 7ngineer ............................... /F0 /1onsultant0 in charge of super,ision ................................ /%0 8ndicate features of the projec si;e of eDuipment, ork ,olume and any other particular interest connected ith the projectK ................................. /<0 Position co,ered in this ProjectK ................................. /E0 Duration of the assignment in the project .................................. .......... ............. /Place and Date0 /The 5epresentati,e0 years 4rom To

FORM N). 8 GENERAL E9PERIENCE 7lectro 9 Mechanical -orks successfully completed +y the Applicant in the past ten /$(0 years. ?se as many copies as necessary. $. !ame of projectK '. -ork performed +y the ApplicantK ). Participation in percent /if not alone0 F. 1ontract amountK original currencyK 7Dui,alent in ?SDK %. 4inal amount +illedK original currencyK 7Dui,alent in ?SDK <. Date of commencement as per contract E. Date of completion i0 As per 328=32A=2riginal 1ontract ii0 Actual A. !ame and address of o ner B. !ame and address of the engineer /consultant0 in charge of super,ision of the construction $(. Source of finance $$. !ame of Applicant&s three senior personnel on the project together ith their title, function or responsi+ility $'. Brief description of the project, including any particular or special aspect of the same /$0 /'0

......... /Place and Date0

............. /The 5epresentati,e0

F)%> N).7 P!%,(=-;!% EJ?$%($"=$ R$=)%. N!>$ )/ S);$ A??;(=!", )% P!%,"$% )/ ! J)(", 4$",-%$ A??;(=!", A3ST2M Projects 8ndia 3td. On a separate page, using the ormat o Form 7A !O 7J, each App"icant or #artner o a $oint venture is re%ueste& to "ist a"" contracts o a simi"ar nature an& comp"e'ity to the contract or (hich the App"icant (ishes to %ua"i y, un&erta)en an& comp"ete& in the past* !he va"ue shou"& be base& on the currencies o the contracts converte& to +, &o""ars, at the &ate o substantia" comp"etion* !he particu"ar e'perience shou"& inc"u&e the o""o(ing - Tur+ines 8nlet @al,es Generators 8solated Phase Bus Duct )) 6@ O3P7 ca+les 2,erhead 1ranes Diesel 7ngine Generators 1ontrol # protection 7Duipment ?nit Au:iliary Transformers .here the App"icant proposes to associate manu acturer/s0 or any item/s0 o e%uipment costing in e'cess o ten /110 percent o the va"ue o the (ho"e (or)s, the in ormation in these orms shou"& a"so be supp"ie& or each such manu acturer** !he in ormation in Form-2A is to be summarise& in the tab"e orm, as sho(n be"o(* SUMMARY- COMPLETED CONTRACTS OF SIMILAR NATURE AND COMPLEXITY !ame of Project C) !ame of 1ontractor&s 1ontract Jearofschedule /5eported on 4orm 9 1ontract 5ole /lead ,alue in completion=actual -" )A0 partner of *@ Million ?S completion ,%< or other ise0 GU 9 L EJ=A!"#$ %!,$ !+ )" .!,$ )/ !B!%. )/ C)",%!=, * UU9 4igures arri,ed using appro:imate e:change rate ,alues NB :- T) ?;$!+$ !,,!=A .$,!(;$. .!,! +A$$,+ .!,!+A$$,+* )-,+,!".("# .$'$;)?>$",+/+(#"(/(=!", !=A($'$>$",+ )/ ,A$ =)>?!"< BA$%$'$% ?)++(@;$. DateK '(() Signature K

F)%> N). 3 ED-(?>$", C!?!@(;(,($+ N!>$ )/ S);$ A??;(=!", )% P!%,"$% )/ ! C)(", '$",-%$ A??;(=!", A3ST2M Projects 8ndia 3imited The Applicant should pro,ide list of all major eDuipment for manufacturing and erection, hich he or the manufacturer/s0 proposed +y him ould propose to use them for the 1ontract, in separate sheets in a form as sho n +elo K L(+, )/ P%)?)+$. ED-(?>$", !o . !ame of eDuipment 1apacity. !os Jear of 1urrent 1urrent 7stimated 2r . of manufa o nership location purchase production unit cturer U$ /country0 price /8!5 rate per unit0 U$ K 1lassify as C2 ned /or name of Partner0C, CTo +e leasedC and CTo +e purchasedC. A separate form %A should +e prepared for major items of eDuipment listed in this 4orm %.

ANNEXURE - I APEEJAY INFORMATION SUPPORT SYSTEM

1.GENERAL INFORMATION
1.1 NAME OF THE COMPANY:
A3ST2M Projects 8ndia 3td.

1.2 REGISTERED OFFICE* PHONE* FA9* 0EB SITE:


MThe 8nternationalN %th 4loor, $<, Marine 3ine 1ross 5oad !o. $ 2ff Maharishi 6ar,e 5oad, 1hurchgate, Mum+ai9 F((('( Phone !o. K '(% $'%<='(( (FB(='(( (FAE='(( (%'A 4a: !o. K '(( ()'F -e+ SiteK .alstom.co.in

1.2 CHAIRMAN* CEO 5 SENIOR E9ECUTI4ES:


Mr. !icholas Salmon, 1hairman Dr. 6rishna Pillai, Managing Director Mr. !aina 5 Desai, -hole Time Director Mr. Michel Augonnel Mr. Ale:ies 4ries Mr. 6 @asude,an

1.4 DELHI OFFICE ADDRESS* PHONE* FA9:


1handi ala 7state Maa Ananda Mai Marg, 6alkaji, !e Delhi9 $$(($B Phone !o. K '<A' <$(( P <$%( 4a: !o. K '<A' <$A(

1.6 CEO OF DELHI OFFICE:


Mr. @ 6 Sahni

1.8 CHIEF OF HR:


Mr. *a aid Asfraf, 7:ecuti,e Director9 "5

1.7 HEAD OF PLACEMENT:


Mr. 6alim 6ureshi

1. HISTORY & CURRENT PROFILE


2.1 PROMOTERS: State Bank 2f 8ndia 81818 Bank "D41 Bank 1anara Bank Bgank of Baroda.

2.2 TOTAL NO. OF EMPLOYESS:


Total no. of employees are '(AF out of hich no. of staffs # engineers are $()$ # no. of la+ours # orkers are $(%)

2.4 IMPORTANT STAGES OF GRO0TH


R$+-;,+ ,!,,;$ ,!E$+ ALSTOM ,) "$B ?$!E Alstom Po er today hit a %'9 eek high on the !ational Stock 7:change /!S70 at 5s %$ and closed at 5s F%.(% today on e:pectation of +etter results and ,alue +uying, dealers said. 2,er %.)A lakh shares changed hands on the !S7. ALSTOM /!(;+ ,) =)>?;< B(,A @)!%. =)>?)+(,()" ")%> 7Duipment major Alstom Po er 8ndia has failed to comply ith 1lause FB of the listing agreement ith the stock e:changes regarding the composition the +oard. The pro,ision clearly stipulates that at least t o of the directors on the +oard should +e independent, hile there is only one in the case of Alstom Po er W 6 @a ALSTOM !%>+ >$%#$% ,) ;(/, ?!%",M+ ?($ ,) 87N The stake of 4rench po er major Alstom in its 8ndia flagship, Alstom Po er 8ndia 3td, ill go up from %(.BB per cent to <E per cent once its three other ,entures in the country 99 Alstom Transport, Alstom Systems and Alstom Po er Boiler 99 are merged into it. ALSTOM P)B$% )E!<+ )/ ,A%$$ !%>+ B(,A (,+$;/ Alstom today decided to merge Alstom Transport 3imited and Alstom Po er Boilers 3td ith Alstom Po er 8ndia 3td. The Alstom Po er +oard met today in

Delhi

to

consider

the

amalgamation.

ALSTOM @)!%. ,) =)"+(.$% >$%#$% )/ 2 !%>+ The +oard of Alstom Po er 8ndia, the flagship of the 4rance9+ased Alstom in the country, is meeting tomorro to consider amalgamating three group companies ith itself. ALSTOM ,) /("!;(+$ ;)=!; =)"+);(.!,()"+ (" 8 >)",A+ Alstom group, the 4rench energy transmission and distri+ution giant, is e:pected to finalise consolidation of its acti,ities in 8ndia in si: months. The company operates through fi,e operational outfits, out of a list of $< legal entities.

2.6 CURRENT BUSINESS ACTI4ITIES NATIONAL/INTERNATIONAL


A3ST2M Po er manufactures # install machineries such as 6alpan Tur+ines, Pelton Tur+ines, Po er Transformers, pro,ides After Sales Ser,ices, 7:ecution of all types of projects in Turnkey Basis etc.

3. MARKETING DATA
2.1 PRODUCTS 5 SER4ICES: KALPAN TURBINES
6alpan tur+ines are used for lo head application reanging from $' to %( meters app:. Due to their runner +lades= icket gates dou+le regulating system, these tur+ines ha,e high performance charecteristics o,er a large range of heads # loads. -ith its present tate of technology, A3ST2M po er hydro can design large tur+ines upto a $( meter runner diameter # a ''(M- unit output. The key components are then de,ide di,ided into su+assem+lies to meet transport limitations. 4or the harnessing of large ri,ers, this type of design # manufacturing method can considera+ly reduce the in,estment cost. The e:periencec # e:pertise gained for the large kalpan units are also present in A3ST2M po er hydro smaller applications. The follo ing are just a fe references sho ing A3ST2M po er htdro technical skill in this field. The 6alpan tur+ine has considera+le ad,antages o,er the other types of machines hich may also +e used for the same application. 2ne e:ample of this is seen ithin the lo er range of heads # hen the units take part in the net ork freDuency control. 2peration ith kalpan tur+ines is then more relia+le than ith +ul+ tue+ines due to the high inertia of rotating parts. 2n the other hand, ithin the range of higher heads, hen lo load operations are freDuent, the kalpan tur+ine ill +e +etter suited then the francis type resulting in high performances due to its dou+le regulating system. The purpose of the hydraulic design of kalpan tur+ines is to predict the performances of the machines through calculation methods # then to conduct an e:perimental chacking to assertain that the machine is +est suited to site conditions # meets the client&s operating reDuirements. A3ST2M po er hydro has state of art methods to carry out such studies.

PELTON TURBINES
8mpulse type tur+ine, that is, using the ater kinetic energy, pelton tur+ine can operate under a ,ery large range of heads, from '(( m to $%(( m. 2n the +asis of its e:perience, A3ST2M po er hydro can offer ,ertical shaft machines eDuiped ith multi9jat collectors upto output of )%(M- app:. ith a F(( mm diameter.

2n the other hand, 3AST2M po er hydro also designs hori;ontal shaft single or dou+le runner pelton tur+ines ith one, t o or four jets capa+le of +ieng economically used for the lo est discharges.

PO0ER TRANSFORMERS
A3ST2M has +een manufacturing all kinds of transformers up to %'%k@ rated ,oltage # F((M@A rated po er # reactors in Ge+;e plant for o,er )( years. !ot only the production process # tests +ut the construction # design are also supported +y computers. The transformers are manufactured in accordance ith @D7 (%)' # 871 E< or any other reDuired international standard. Some of the parts of a transformer are as follo sK $. 1ore lim+s '. 3.@. inding ). ".@. inding F. Tapping inding %. conductors <. 3.@. +ushings E. ".@. +ushings A. Pressing eDuipment B. 2!9load tap changer $(. Motor dri,e mechanism $$. 2il conser,ator $'. 5adiators $). Tank CUSTOMER SUPPORT LINE

P%("=(?;$+
The customer support line is a free A3ST2M po er ser,ice esta+lished to gi,e hydro plant o ners # A3ST2M a forum to jointly discuss technical or oprational hydro isues. The ser,ice ill respond to minor hydro issues or pro+lems ,ia ell defined Duestions that can +e handled +y a telephone call, e:change of letters=fa:es or +y e9mail. Should the Duestions raised +ecome more specific or the reDuested ans er lead time ,ery demanding, then the support ill +e charged in function of the ,olume of e:change # the time co,erage.

I",$%$+,
By using the custoemr support line one ill o+tain hydro related technical assistance in a fast # easy process to help the company to sol,e their minor

technical # operational pro+lems. A3ST2M po er hydro ill in,ol,e e:perienced # Dualified company e:perts to espress their hydro issues.

B$"$/(,+
By using A3ST2M po er hydro customer support line one ill a,oid the time consuming search for the right specialist to address their hydro pro+lems.

I>?;$>$",!,()"
Through the customer support line one ill +e a+le to esta+lish informal contacts ith e:perienced A3ST2M po er hydro personnel # there+y sol,e minor pro+lems ith a minimum of effort. A3ST2M po er hydro ill maintain # distri+ute A3ST2M contact liss to interested parties. The contact list ill pro,ide contact names # phone # fa: num+ers to +e used in acse of pro+lems. -hen a customer support line discussion suggests that a more detailed re,ie # more efforts are needed, other A3ST2M po er hydro ser,ices such as +reak do n support or technical assistance are a,aila+le. The A3ST2M po er cantact person ill suggest these other ser,ices # ad,ice on ays the customer may limit their pro+lem +ased on a,aila+le information.

C)+,
The customer support line is free of charge for a limited num+er of calls. Should the num+er e:ceed a initial credit or comple: technical reDuests in,ol,ing e:tensi,e research # specialists attention +e reDuired, then the support ill +e charged.

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The customer support line ill lead toK 8mpro,ed Duestion response time 5educed trou+le shooting efforts 5educed outage time. BREAKDO0N SUPPORT

P%("=(?;$+
Breakdo n support is support ser,ice from A3ST2M po er aimed at the fast # eficient return of hydro generation # the reco,ery of a plant&s sta+ility due to operational distur+ances.

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By reducing the do n time caused +y a plant distur+ance, +reakdo n coats sucg as lo re,enues #=or cost of purchased po er may +e held to a minimum. 8n addition, e:perienced # ready A3ST2M po er personnel reduce ones need to maintain such specialised staff resources in9house.

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-hen a +reakdo n occurs, A3ST2M po er ill return the unit to normal operation as Duickly as possi+le. 8n addition, A3ST2M po er ill analyse the cause of the +reako n in order to recommend a permanent repair. -ithin A3ST2M po er, +reakdo m support is a high priority ser,ice designed to deli,er the necessary manpo er, competence # the most common materials=spares on short notice. 8nternal A3ST2M systems are used to e:pidite site orks preparation, reDuest preparations # arrange stand +y ser,ice personnel.

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Breakdo n support is a fast response to your +reakdo n reDuests using e:perienced engineers # repair resources. Based on pre,ailing conditions # time limits, this ser,ice ill include analysis of inherent failure mechanisms # causes. "o e,er, should more detaileed tests # analusis +e reDuired after the actual reco,ery of plant operational health, A3ST2M po er is ready to discuss such e:tended studies. Breakdo n support may +e used as a stand alone ser,ice or as part of a more e:tensi,e A3ST2M po er ser,ice contract. 8n the latter case moer detailed site conditions suchas response time , type of personnel # stock of spare parts to +e identified for that particular plant ill +e e,aluated.

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Breakdo n support ill +e in,oicedon a cost plus +asis.

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5educing do ntime is critical hene,er +reakdo n occurs. The additional cost of a Duick response is relati,ely small compared to the loss of hydro production re,enues. By relying on A3ST2M o er one mayK 3imiy his=her e:posure to loss of re,enues 5eco,er generation output 5eturn the unit to production.

TECHNICAL ASSISTANCE

P%("=(?;$
Technical assistance is a ser,ice from A3ST2M po er that pro,ides their customers ith the technical competence to impro,e the operations of their hydro plants. This assistance includes a general technical analysis, the assessment of all hydro plant eDuipment for operational # life span conditions # planning of future plant upgrade #=or maintenance projects.

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Br relying on A3ST2M po er personnel e:perience # technical competence, one ill +e orking to ards optimal solutions hile reducing their o n engineering costs.

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A3ST2M po er hydro technical assistance ser,ice gi,es to the customers access to A3ST2M&s competence # knoe9ho as a orld ide supplier mastering all hydro plant eDuipment technologies. This ser,ice allo s one to share their e:perience of a complete range of hydro plant designs # operating practices. This uniDue engineering capa+ility can only +e maintained thanks to their di,erse installed +ase. ide #

A3ST2M po er hydro technical assistance ser,ice is +ased on a strong internal net ork of engineering # ser,ice resources. This ser,ice is supported +y a co9 ordinated e:change of data +et een A3ST2M units to ensure the a,aila+ility # the Duality of all rele,ant product information.

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The technical assistance ser,ice ill include the inter,ention of Dualified engineers ho ill meet the customer to understand the issue # plan the inter,antion ith the client. Then A3ST2M po er team shall undertake, as directed, a detailed assessment using up9to9date e,aluation tools # methodologies. All technical assistance ser,ices shall +e summarised +y a confidential technical assistance report including measurement, schedules, interpretation # assessment, as ell as their final conclusions # recommendations.

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Terchnical assistance ser,ice ill +e in,oiced on a cost plus +asis.

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By using A3ST2M !po er one may assessK 7Duipment limitations Potential capacity impro,ements Ma:imised eDuipment performance

2.2 COMPETITORS:
The main competitors of A3ST2M Projects 8ndia 3td. are Siemens, General 7lectrics, ABB, 1rompton Gre,es, B"73.

2.2 MARKETING STRATEGIES:


O'$%=)>$ ,A$ +A)%, ,$%> =%(+$+ Short term crises can +e remo,ed +y immediate supply of the reDuirements of the client. The company must ha,e reDuired items for the project in hand so as to ease of supply as reDuired. F)%$=!+, ;)"# ,$%> .$'$;)?>$", The company must foresee the future reDuirements of the clients also. The technical eDuipments # such machineries should +e arranged +eforehand in the present hich could +e reDuired in the long run. C)+, 1ost of the tender should +e kept as lo as possi+le. But the profit structure should not +e a,oided keeping in mind the Duality of the product. C)>>(,>$", 2perational managers should prepare themsel,es to +e committed to ards their jo+. They should de,ote themsel,es to ards the project that they are going to commission. F;$J(@(;(,<

The company should ha,e enough choice so as to o,ercome the reDuirements of the client. 4le:i+ility should +e there in the products also. 8f the client donot ant a particular product, the company must +e a+le to pro,ide its su+stitute. I"/)%>!,()" All the detailed information should +e mentioned in the tender. 8nformation regarding the ay of errecting the project, machineries, legal documents # so on. F(,"$++ )/ ,A$ +,%!,$#< The strategy should +e made in such a ay that it should match the present # future en,ironment of the corporate as ell as of the site. Strategy should match the present en,ironment of the corporate # should match the future at the site. O'$%=)>$ ,A$ ,A%$!,+ ?)+$. @< ,A$ =)>?$,(,)%+ The company should al ays +e ready ith the threats posed +y the competitors. 1ompetitors may Duote fe points hich may suite the client +ut may not suite the company. 8n such a case, the company should try to adjust ith the situation # Duote points in fa,our of themsel,es. T$=A");)#< The company should use the latest technology in the machineries. They should also mention the details of the tachnologies to +e used in the project.

2.4 IT APPLICATIONS IN MAEKETING:


A3ST2M uses t o kind of 8T applications. 2ne is kno n as M8!T /Marketing 8ntelligence !et ork0. 8t is +een upgraded in 4rance e,ery day. 8t is a net ork in all A3ST2M throughout the orld. 8t +asically gi,es the marketing information happening throughout the orld. Another application hat they use is 2TMS /2pprtunity Track Management System0. 8t is a general application hich is +een used in all the departments. 8t is mainly project concerning application. 8t is +een upgraded +y those persons ho are +een gi,en the responsi+ility to manage one project9 the person ho is the proect leader.

2.6 MARKETING CONCERNS:


PO0ER : THE GLOBAL FULL SER4ICE PRO4IDER To strengthen it&s position as a leading player in the po er generation market, A3ST2M reDuired in May '((( ABB&s %(H share in their recently formed joint company, no renamed A3ST2M Po er, a ne A3ST2M sector. "a,ing

supplied '(H of the orld&s total installed po er generation capacity, A3ST2M is one of the orld&s leading suppliers of turnkey po er plents, all types of tur+ines / gas, steam, hydro 0, generators, +oilers, electrical control systems, en,ironmental protection systems as ell as a complete range of ser,ices, including plant modernisation # long term operation # maintenance, project de,elopment # financing. As the full ser,ice pro,ider in po er generation, A3ST2M offers an e:tensi,e range of competiti,e products # ser,ices hich also set leading standards in en,ironmental impact. Through increased 5#D in,estment in ne # e:isting product de,elopment, A3SJ2M contineus to pro,ide customers ith the inno,ati,e solutions they need to remain competiti,e. TRANSMISSION 5 DISTRIBUTION 2ne of the orld leaders in po er transmission # distri+ution, A3ST2M is present at all stages in the supply chain of electricity. 4rom the po er plant to the end user, A3ST2M offers the idest # most relia+le range of products # ser,ices in the market. 8t&s po er deli,ery systems are designed to meet the reDuirements of utilities, industries, local authorities # infrastructure companies. At the lesding stage of research, A3ST2M de,elops tomorro &s ser,ices such as 7nergy !et ork Management # solution in harmony ith the en,ironment. TRANSPORT Populations are gro ing # cities are e:panding throughout the orld. 8n this conte:t, mo+ility is a key factor in economic gro th # d,elopment. A3ST2M contri+utes greatly to this mo+ility +y pro,iding a full range of rail solutions. Since the acDuisition of a major share of 4iat 4erro,iaria, the company has +ecome one of the rail industry&s +iggest supplier of products, ser,ices # systems, ithin an $AH market share orld ide in the domains in hich it is acti,e. The company is reno ned for it&s comprehensi,e range of state9of9the9art rolling stock, including TG@&s # high speed tilting trains for inter city operations, tram ays # metros of ur+an transit, # locomoti,e # freight agons. 8t also pro,ides train control systems, train life management ser,ices, railroad maintenance # turnkey or full concession transport system solutions. A3ST2M has +een a+le to anticipate orld trends # offer it&s customers inno,ati,e solution at the lo est cost, largely +y de,eloping # applying it&s uniDue concept of modularity, optic design, hich makes the most of standardi;ation # customi;ation. MARINE The cruise market has taken off in recent years. -ith an order +ook hich has reached record le,els, A3ST2M ahs +ecome the orld leader in cruise ship +uilding , ith ))H f the market. The company +uild ship ith high added ,alue

their performance, relia+ility # spedd are constantly impro,ing respecting the en,ironment.

hile increasingly

A3ST2M&s e:pertise is +ased on inno,ation, its keystone is control o,er construction costs # lead times. CONTRACTING A3ST2M is the 7urean leader in systems integration, associated ser,ices, ellectrical # technical intallations applied to energy, transport # communication infrastructures, process industries # +uildings. -ith e:pertise in high # lo ,oltage applications, automated systems, mechanical applications, as ell as air conditioning engineering, ater systems, communication net orks # intigration of ne technologies, A3ST2M pro,ides high performance solutions adapted to the specific needs of each client, hether for installation, maintenance # glo+al ser,ice. PO0ER CON4ERSION A3ST2M is an e:pert in con,erting electricity into usea+le energy. 8t markets comprehensi,e solutions # associated ser,ices for the automated running of manufacturing processes ith a range of high performance products, motors. Dri,es, generators # po er electronic eDuipment. GLOBAL SERCICE COMMITMENT A3ST2M po er hydro understands the importance of +eing capa+le # a,aila+le at all times. 6eeping the plant up # renning at peak performance reDuires a ser,ice team that is fully commited. The key factor is the a,aila+ility of the right people ho are responsi,e, solution oriented # capa+le of a total plant approach. RANGE OF SER4ICES There is a general trend among po er producers to allo suppliers to take increased responsi+ility for ser,ice # maintainance.3AST2M po er is ell suited in this area # has de,eloped specific packages for hydroop er plants +asd upon its e:tensi,e e:perience. These packages may +e grouped # tailored made to pro,ide total solutions that meet your reDuirements. M!(",!("!"=$ +-??)%, Breakdo n support Technical support 1ustomer support line Spare parts O5M ?%)=$++ (>?%)'$>$",+ Training

Maintenance engineering 5emote # implimantation

A'!(;!@(;(,< /)=-+ ?!=E!#$ 3ifetime e:tensions 1ondition monitoring 4ull relia+ility package L)"# ,$%> +$%'(=$ !#%$$>$",+ Planneed maintenance Total maintenance 4ull 2#M

TAILOR MADE SOLUTIONS A3ST2M can pro,ide tailor made ser,ice solutions from training, condition monitoring, maintenance engineering support # similar solutions up to total maintenance outsourcing # full 2#M. LOCAL PRESENCE A3ST2M po r has a total of ') hydro +usiness units located aroud the orld that are +acked up +y E( A3ST2M po er se,ice centres. This allo s Duick # proffesional response to customer needs.

2.8 NATURE OF JOBS OFFERED:


The nature of jo+s offered to the company is of Turnkey 1ontracting +asis. These are +asically the projects in hich the company has to do all the jo+s starting from manufacturing or supplying of machineries till the errection of the project.

2.7 RECRUITMENT POLICIES:


!o recruitment ill +e made ithout a formal appro,al, as in Section ).$, and ithout follo ing the prescri+ed recruitment procedures. -hene,er a ,acancy occurs, the first attempt should +e to e:amine hether the ork load could +e shared amongst others +y enriching their ork content, or +y other alternati,es like automation or system restructuring or +y upgrading the skills of some e:isting personnel. All selections ould +e made through duly constituted 8nter,ie Panels. !o recruitment shall +e made hich idely de,iates from the appro,ed jo+

specifications. Temptations to induct o,er Dualified persons should +e resisted unless there are clear career possi+ilities for such professionals ithin or outside the Segment=4unctional Area. 5ecruitment e:penses ha,e to +e +udgeted +y the respecti,e Segments=4unctional Groups +ased on additional manpo er projections for the year in Duestion.

4. FINANCIAL PROFILE
BACKGROUND A3ST2M po er 8ndia limited is a pu+licly o ned company, incorporated on Septem+er ', $BB' as Asea Bro n Bo,eri Management 3imited /ABB0, registered ith the registrar of companies, Maharashtra. A3ST2M po er, !@, a company incorporated in the !etherlands holds %$H of the eDuity # the +alance eDuity is geld +y the pu+lic # ,arious financial institutions. The company is engaged in the +usiness of design, engineering, manufacturing, procurement, supply, commissioning, ser,icing # reno,ation # modernisation of po er plants for utility # industrial users. 8t is also engaged in the de,elopment # solution of ait pollution control systems, eDuipment for pollution control # con,ersion of energy. PROPOSED AMALGAMATION At a meeting of the +oard of directors of the company held on 4e+ruary $), '((', a resolution as passed for the amalgamation of the follo ing companies ith A3ST2M po er 8ndia limitedK A3ST2M Transport 3imited /AT30 A3ST2M Po er Boilers 3imited /APB30 A3ST2M Systems 3imited /AS30 8n pursuance of this decision, the scheme of arrangement for amalgamation as filed ith the "onoura+le "igh 1ourts of *udicature at Delhi # Bom+ay in accordance ith the pro,isions of section )BF of the companies act, $B%<. the scheme has +een appro,ed +y the shareholders # the creditors of the transferor # transferee companies. 4urther, the petition for appro,al of the scheme filed +y AS3 # AT3 has +een appro,ed +y the "igh 1ourt of *udicature at Delhi on May 'A, '(('. "o e,er, the petition of APB3 # the company is pending appro,al of the Bom+ay "igh 1ourt. ACCOUNTING POLICIES BAS8S 24 P57PA5AT82! 24 48!A!18A3 STAT7M7!TS

The financial statements are prepared under the historical cost con,ention, on the accrual +asis of accounting # in accordance ith the accounting principles generally accepted in 8ndia. 8n preparing # presenting these financial statements, the company has , for the first time adopted the follo ing accounting standards recently issued +y the 8nstitute of 1hartered Accountant of 8ndia /81A80K Accounting standard $EK Segment reporting Accounting standard $AK 5elated Party Accounting standard $BK 3eases Accounting standard '(K 7arnings Per Share Accounting standard ''K Accounting for ta:es # income FI9ED ASSETS 4i:ed assets are stated at cost less accumulated depreciation. 1ost of fi:ed assets comprises purchase price, duties, le,ies # any other costs relating to the acDuisition # installation of the asset. 8nterest # financing charges on +orro ed funds, if any, used to finance the acDuisition of fi:ed assets, until the date the assets are ready for use are capitalised # included in the cost of asset. Soft are costs capitalised consist of cost of acDuisition of product design soft are, soft are license fee # cost of system integration ser,ices. DEPRICIATION/AMORTISATION Depreciation is pro,ided on the straight line +asis. 2n additions # disposals, depreciation is pro,ided for the period of using during the year. The follo ing rates of depreciation are determined on the +asis of useful li,es of the assets estimated +y the management or at rates specified in 1hapter $% to the companies act, $B%<, hiche,er is higher. ASSTES 4actory Buildings 2ther Buildings Plant # Machinery Data Processing 7Duipment 4urniture # 4i:tures Motor @ehicles PERCENTAGE ).)F $.<) F.E% )).)) $(.(( '(.((

3easehold assets are amortised o,er the period of the lease. Technical kno 9ho fees are amortised o,er a period of < years from the year in hich it +ecomes paya+le. Soft are costs are amortised o,er a period of % years. Assets costing +elo 5s.%(((=9 are fully depreciated in the year of purchase.

During the year, the company re,ised the estimated useful life of furniture # fi:tures # motor ,ehicles to $( years # % years respecti,ely. Accordingly, depreciation on the re,ised unamortised deprecia+le amount is pro,ided prospecti,ely o,er the residual useful life of these assets. 7arlier, these assets ere depreciated at the rates specified in 1hapter $% to the companies act, $B%<, the impact of this change is not material to the financial statements. FOREIGN CURRENCY TRANSACTIONS 4oreign currency transactions are recorded at the rates of e:change pre,ailing on the date of the transactions. 4oreign currency assets # lia+ilities are translated into rupees at the e:change rates pre,ailing on the +alance sheet date or the for ard co,er rates, as applica+le. 7:change differences in translation of foreign currency assets # lia+ilities # realised gains # losses on foreign e:change transactions, other than those relating to fi:ed assets are recognised in the profit # loss account. 7:change differences arising on lia+ilities incurred for the purpose of acDuiring fi:ed assets are adjusting in the carrying ,alue of the respecti,e fi:ed assets. IN4ENTORIES 8n,entories are stated at the lo er of cost # net realisa+le ,alue. The cost of ,arious categories of in,entories is arri,ed at as follo sK Stores, spares, ra materials # components at rates determined on the eighted a,erage method. -ork9in9progress # finished goods +ased on annual a,erage cost of production including appropriate proportion of cost of con,ersion. 7:cise duty is included in the ,alue of finished goods in,entory. Packing materials, loose tools # consuma+les are e:pensed to the profit # loss account at the point of purchase. 1ontract ork9in9progress is ,alued at lo er of cost or net realisa+le ,alue up to the stage of completion. 1ost includes direct materials, la+our cost # appropriate o,erheads. RE4ENUE RECOGNITION 1. R$'$"-$+ /%)> ;)"#-,$%> =)",%!=,+. 1ontract prices are either fi:ed or su+ject to price escalation clauses. 5e,enues are recognised on a percentage completion method, +ased on the +illing schedules agreed ith the customers. The rele,ant cost is recognised in the financial statements in the year of recognition of re,enues. 5ecognition of profit is adjusted to ensure that it does not e:ceed the estimated o,erall contract margin. 8n addition, if it is e:pected that the contract ill make a loss, the estimated loss is pro,ided for in the +ooks of account. Such losses are +ased on technical assessments.

Amounts due in respect of price escalation claims and=or ,ariation in contract ork appro,ed +y the customers are recognised as re,enue only if the contract allo s for such claims or ,ariations and=or there is e,idence that the customer has accepted it. 3iDuidated damages=penalties are pro,ided for +ased on management&s assessment of the estimated lia+ility as per contractual terms and=or acceptance. 2. R$'$"-$+ /%)> +!;$ )/ ?%).-=,+ 5 +$%'(=$+. 5e,enues from sale of products are recognised on despatch of goods to customers # are net of e:cise duty, sales ta: # trade discounts. 5e,enues from ser,ices are rendered. RETIREMENT BENEFITS 1ontri+ution to pro,ident fund=superannuation fund is made at a predetermined rate to the Pro,ident 4und Trust=Superannuation 4und Trust and charged to the profit # loss account. RESEARCH 5 DE4ELOPMENT All re,enue e:penses pertaining to research # de,elopment are charged to profit # loss account in the year in hich they are incurred. LEASES Assets acDuired under operating lease are recognised as an e:pense in the profit # loss account on a straight9line +asis o,er the lease term. TA9ATION Pro,ision for income ta: is mad e on the assessa+le income at the ta: rate applica+le to the rele,ant assessment year. Deferred income ta: are recognised for the future ta: conseDuences attri+uta+le to timing differences +et een the financial statement determination of income # there recognition for ta: purposes. The effect on deferred ta: assets # lia+ilities of a change in ta: rates is recognised in income using the ta: rates # ta: la s that ha,e +een enacted or su+stanti,ely enacted +y the +alance sheet date. Deferred ta: assets are recognised # carried for ard only to the e:tent that there is a reasona+le certainty that sufficient future ta:a+le income ill +e a,aila+le against hich such deferred ta: assets can +e realised. 8n accordance ith AS9''9 accounting for ta:es on income, the accumulated net deferred ta: lia+ility of 5s.$$)B$( thousand arising on account of timing differences as at *anuary '(($ has +een adjusted to general reser,e.

A BRIEF AUDIT REPORT- MARCH 21* 2002 1. The company has maintained proper records sho ing full particulars, including Duantitati,e details # situation of fi:ed assets. The company has physically ,erified fi:ed assets in accordance ith their rotational plan # no material discrepancies ere noted. 8n the opinion of the auditors, the freDuency of ,erification is reasona+le in relation to the si;e of +usiness # nature of its assets. 2. The fi:ed assets of the company ha,e not +een re,alued during the period. 2. The in,entories of finished goods, ra materials, components / e:cluding goods in transit0, stores # spares parts of the company ha,e +een physically ,erified +y the management during the period, in the opinion of the auditors, the freDuency of ,erification is reasona+le. 4. The procedures of physical ,erification of in,entories follo ed +y management are reasona+le # adeDuate in relation to the si;e of the company # the nature of its +usiness. 6. The discrepancies +et een the physical # +ook in,entories ere not material # ha,e +een properly dealt ith in the +ooks of account. 8. The ,aluation of in,entories is spared # proper, in accordance ith generally accepted accounting principals # is on a +asis consistent ith the pre,ious year. 7. The company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under section ) of the act and=or from companies under the same management as defined under section )E( /$B0 of the act. 3. During the period, the company has granted unsecured loans to companies listed in the register maintained under section )($ # to companies under some management a defined under section )E( /$B0 of the act. 8n the opinion of the auditors, the rate of interest # the terms # conditions of these loans are not prima facie prejudicial to the interest of the company. 9. The parties to hom loans or ad,ances in the nature of loans ha,e +een gi,en +y the company are repaying the principal amount as stipulated # are also regular in the payment of interest, here applica+le. 10. The internal control procedures of the company relating to the purchase of stores, ra materials, including components, plant # machinery, eDuipment # other assets # for the sale of goods, are adeDuate # commensurate ith the si;e of the company # the nature of its +usiness. 11. 8n the opinion of the auditors # according to the information # e:planations gi,en to them # ha,ing regard to the fact that some of the items purchased are of a special nature # suita+le alternati,e sources do not e:ist for o+taining comparati,e Duotations, the transactions of purchase of good # materials # sale of goods, materials # ser,ices, made in pursuance of contracts or arrangements entered in the register maintained under section )($ of the act # aggregating during the period to 5s.%(,(((=9 or more in respect of each party ere made at

prices hich are reasona+le ha,ing regard to pre,ailing market prices, as a,aila+le ith the company for such goods, materials or ser,ices or the prices at hich transactions for similar goods, materials or ser,ices are made ith other parties. 12. The company has a reasona+le system of determining unser,icea+le or damaged stores, ra materials, components # finished goods. 8n the opinion of the auditors, adeDuate pro,isions ha,e +een made for unser,icea+le or damaged stores, ra materials, components # finished goods. 12. The company has not accepted any deposits from the pu+lic. "o e,er, pursuant to its scheme of arrangement of ABB, some deposits of ABB ere transferred to the company. The transferrer company has confirmed that it has complied ith the pro,isions of section %AA of the act # the companies rules $BE%, ith regard to the aforesaid fi:ed deposits. During the year, the deposits ere repaid +y the company. 14. 5easona+le records for the sale # disposal of scrap ha,e +een maintained +y the company. The company does not ha,e any +y9 products. 16. The company has an internal audit system commensurate ith the si;e # nature of its +usiness. 18. The company has +een regular in depositing pro,ident fund # employees state insurance dues ith the appropriate authorities. 17. 2ther than income ta: dues of 5s.',<<% thousand, there ere no undisputed amounts paya+le in respect of income ta:, ealth ta:, sales ta:, customs duty # e:cise duty hich ere outstanding at March )$, '((' for a period of more than < months from the date they +ecome paya+le. 13. There ere no personal e:penses charged to the profit # loss account for the $% month period ended March )$, '(('. 19. The company is not a sick industrial company ithin the meaning of section )/$0/o0 of the sick industrial companies act, $BA%. 20. The company has a reasona+le system, commensurate ith the si;e # nature of its +usiness, for recording receipts, issues # consumption of materials # stores # allocating materials consumed to the relati,e jo+s. 21. 8n relation to issue # allocation of stores, the system of authorisation at proper le,els # system of internal control is commensurate ith the si;e of the company # nature of its +usiness. The company has a reasona+le system of allocation of man9hours utilised to the relati,e contracts, commensurate ith its si;e # nature of +usiness. A BRIEF ANALYSYS REPORT OF A MANAGEMENT DISCUSSION

O4ER4IE0

The economy is passing through a difficult phase caused +y se,eral unfa,oura+le domestic # e:ternal de,elopments. Domestic output # demand conditions ere ad,ersely effected +y poor performance in industrial sectors in pre,ious t o years. The o,erall gro th of %.FH of GDP in '(($9'((' is supported +y gro th rate of %.EH in agriculture # allied sectors, ).)H in industry # <.%H in ser,ices. The infrastructure sectors such as rail ays, po er, ur+an infrastructure needed to see much greater reform +efore in,estments can +e made for including further gro th. 8n each case the regulatory mechanism is still inadeDuate, as in the pro,ision of users charges. A great amount of effort has +een made to reform po er sector # progress has +een made in the restructuring of the State 7lectricity Boards /S7Bs0 # the formation of the State 7lectricity 5egulatory 1ommission. 4ocus on reform has shifted from po er generation to distri+ution including measures taken for ,ia+ility of S7B&s. the key issue inhi+iting in,estments in this sector is presence of large transmission # distri+ution losses, a high proportion of hich is essentially theft # the le,y of inadeDuate user charges of different consumer segments. 8t is naturally difficult that any commercial in,estment is made unless the re,enue generated is at least eDual to the cost of supply. 5eform in this sector must therefore concentrate e:clusi,ely on curing of theft # restructuring of user charges, so that in,estment in this sector can +ecome ,ia+le in +oth pu+lic # pri,ate sectors. As prior year figures for '((( are for $' months, the figures in this report are not directly compara+le ith that of current period hich are of $% month period.

OPERATING RESULTS OF THE COMPANY


Despite a difficult economic # competiti,e en,ironment, the company as a+le to consolidate its position as underK P$%(). E".$. M!%=A 21* Y$!% E".$. D$=$>@$% 21* 2002 R+. M(;;()"+& 2002 R+. M(;;()"+& O%.$%+ R$=$('$. F,F<% %,)B< R$'$"-$+ A,$(% ',AFF O%.$% B!=E;)# F,BFB A,AEE P%)/(, B$/)%$ T!J!,()" <(< $$B P%)/(, A/,$% T!J!,()" )BA $$) EPS B.<$ '.E) The orders recei,ed of 5s. F,F<% million ha +een lo er in the current period compared to precious year due to shift in projects. 5e,enues has gone up su+stantially due to acti,e e:ecution of large projects like "a;ira, !ay,eli, 6or+a # Talcher.

The company generated a net profit +efore ta: of 5s.<(< million compared to 5s.$$B million in pre,ious year. This achie,ement as due to accelerated despatches # corresponding re,enues # implementation of aggressi,e cost reduction programmes.

FINANCE
8n order to align the company&s management information reporting ith the A3ST2M group orld ide, the carat reporting package /tool used orld ide +y A3ST2M for management reporting0 as successfully implemented across all +usinesses of the company. The company has also undertaken < sigma project for timeliness # Duality in group reporting. 8nitiati,e taken +y management in focussing on a M1ash for Gro thN programme ha,e ena+led the company to impro,e its cash flo +y +etter management for orking capital. Actions ha,e +een initiated to reduce general e:penses through o,erall agreements, common for A3ST2M group companies in 8ndia, ith ,endors to deri,e the +enefits accruing from higher ,olumes.

INTERNAL CONTROL
The company has adeDuate system of internal control relating to purchase of stores, ra materials including components, plant # machinery, eDuipment # other similar assets # for the sale of goods commensurate ith the si;e of the company # nature of +usiness. The company has also internal control system for a speedy compilation of accounts # management information reports # to comply ith applica+le la s # regulations. The company has detailed +udgetary control system. The actual performance is re,ie ed ith reference to +udgets monthly +y the management. The company has a ell defined organi;ation structure, authority le,els # internal rules # guidelines for conducting +usiness transactions. The company has formed an auditor committee on 4e+ruary 'E, '(($. the terms of reference of the audit committee include the matters mentioned in clause FB/880 of the listing agreement ith the stock e:changes. The committee acts as a link +et een the statutory=internal auditors # the +oard of directors of the company.

OPPORTUNITIES 5 THREAT 2PP25T?!8T87S

Po er generation in 8ndia continued to e:perience ea sluggish gro th, hich sa a merge F,((( M- +eing added to the installed capacity last year. This creates an opportunity for the company ha,ing capa+ility as a total solution pro,ider # ha,ing local presence in 8ndia. The company has a strong local ser,ice +ase # prices. ith competiti,e time schedules

The company has a strong in9house strength of engineering, supply management # project management ith a sound track record of deli,ering po er plants ithin ,ery tight schedules demanded +y utility # 8PP customers. The Go,ernment&s initiati,e to grant mega projects status to the Sipat )U<<( M- supercritical project of !TP1 is a elcome step. Special schemes ha,e +een de,ised to refur+ish old plants to impro,e their performance. T"57ATS

The issue of payment security as offered +y S7B&s has made in,estors ,ery cautious. The rgulatory mechanism is still inadeDuate, as is the pro,ision of user charges. 5estricti,e policies of Go,ernment, e.g. purchase price preference policy continues in spite of protest from pri,ate sector. RISKS 5 CONCERNS 58S6S

8nordinate delays continues in getting clearances from Go,ernment departments for setting up po er plants, +oth in the pri,ate # pu+lic sector. There is no single indo mechanism a,aila+le for getting clearances. 5eform initiati,es tend to fall at the last mile proposed ith none getting fully implemented. 12!175!S ith ne initiati,es +eing

2rder +ooking of the company for '(('9() is a major concern.

There is a lack of unified political ill in implementing the ,arious po er sector reforms announced +y the Go,ernment. 3arge amounts of dues from S7Bs to 1entral Po er Sector undertakings is also a concern. There is high potential of hydro po er generation +ut implementation hurdle are discouraging.

5. HUMAN RESOURCE DEPARTMENT


6.1 TRAINING
IN-COMPANY TRAINEES
P);(=< The underlying policy go,erning the induction of Graduate 7ngineer Trainees=Management Trainees is t o fold Pto induct Myoung +loodN in the organisation and mould them according to the 1ompany culture, and, to ensure that these recruitments pro,ide the company ith a trained and skilled manpo er pool keeping in ,ie the long term gro th and +usiness strategy of the company . 8n9company trainees, i.e. Graduate 7ngineer Trainees= Management Trainees should +e recruited against anticipated permanent positions. P%)=$.-%$ 1orporate "5, in consultation ith the Segment Directors, and +ased on the medium and long term reDuirements of Management Personnel, ould consolidate the need for Management Trainees. This e:ercise should +e completed latest +y August =Septem+er for recruitments in the coming year. The Sector Management Team ould re,ie and decide the num+er of trainees that should +e inducted in any gi,en calendar year through campus inter,ie . 2nly reputed educational and professional institutions kno n for the academic e:cellence ill +e considered for campus inter,ie s. To a,oid duplication of efforts and to uniformly project the 1orporate image of the 1ompany ith +oth the students and the institutions, 1orporate "5 shall, in consultation ith the 3ocation "5 Managers concerned, e,ol,e a strategy for 1ampus 8nter,ie s so that only one inter,ie team ,isits the same institution during any academic year.

A consolidated list of accepta+le candidates ould +e prepared +y 1orporate "5 and these candidates ould then +e finally inter,ie ed +efore employment offers are released. -hile 1orporate "5 ould +e responsi+le for the induction and Training, the o nership for the Trainees ould +e ith respecti,e Segments. T%!("("# P%)=$.-%$ : The duration of the Training ould +e one year. The Management Trainees=Graduate 7ngineer Trainees ould +e inducted as a group and gi,en an initial orientation training of ) months. The remaining period of B months could +e di,ided +et een site training, po er plant familiarisation, on the jo+ training etc., depending upon the reDuirements. 1orporate "5, in consultation ith the Segment Directors and the 3ocation "5 Managers ould e,ol,e a uniform 8nduction and su+seDuent on9the9jo+ training programme. 8t shall +e the responsi+ility of the "5 Managers to ensure the trainees recei,e the prescri+ed training inputs. They ill facilitate the socialisation process, and +e responsi+le for monitoring their progress, and co9ordinating the Performance 7,aluation. A@+)%?,()" (" ,A$ P$%>!"$", C!.%$ 2n successful completion of training, the Management Trainees=Graduate 7ngineer Trainees ould +e a+sor+ed in the 1ompany in the format attached at Appendi: 9 $. Performance of e,ery MT=G7T, shall +e assessed periodically. ?nsatisfactory performers should +e counseled and if reDuired, encouraged to lea,e the training. A separate Manual on Management Trainee=Graduate 7ngineer Trainees Scheme, ould +e made a,aila+le detailing the terms and conditions of ser,ice for the Management Training Scheme=Graduate 7ngineer Trainees P hich shall +e updated on a periodic =need +asis.

SUMMER TRAINEES/APRAINTEES
S->>$% T%!("$$+ The 1ompany e:tends the facility of pro,iding summer training to a limited num+er of students from recognised and reputed institutions offering management education or engineering institutions like 88Ts, 571s etc. The +asic o+jecti,e is to pro,ide an opportunity to the students to e:pose themsel,es to industrial en,ironment, and meaningfully relate their academic kno ledge to industrial

practices, thus pro,iding a nationally rele,ant interface +et een academic institutions and 8ndustry. They should not +e treated as temporary Xhands& to perform routine departmental acti,ities or for clearing pending ork. They should +e gi,en meaningful projects rele,ant to their area of specialisation, and the "ead of the Department here the student is placed is responsi+le for pro,iding a supporti,e learning e:perience. Since the Duality of the corporate relationship ith these institutions here e go for campus inter,ie s depends largely on the Duality of feed9+ack the summer trainees gi,e to the institutions and the fello students, it is important to project a positi,e image of the 1ompany in our interaction ith them. Additionally, it is considered a part of our social responsi+ility to ards pro,iding a supporti,e contri+ution to the 8nstitutes of learning. Summer trainees may +e taken for a ma:imum period of t o to three months for the purpose of undertaking a specific project or initiating or upgrading a management system or conducting a technical=producti,ity=cost sa,ing=de,elopmental project or for data collection=analysis etc. under the super,ision and guidance of the head of the user Department. The trainees should +e in,ol,ed in meaningful acti,ity hich ill add ,alue +oth to their learning and su+stantially contri+ute to the user Department. !ormally, no stipend is paya+le to a Summer Trainee. "o e,er, in e:ceptional cases, the proposal for payment of stipend to a Summer Trainee may +e appro,ed +y the 1orporate "5 Department. 4or such trainees from o,erseas Group 1ompanies or other o,erseas organisations, the stipend is 5s.)(((=9 per month if accommodation is pro,ided in the company guest house=transit flat=hostel on a sharing +asis, or other ise, and if no such accommodation is pro,ided, the monthly stipend is 5s.%,(((=9 per month. The stipend is meant to assist the e:penses incurred on meals, con,eyance, accommodation etc. The duration of such training may ,ary +et een < 9 $' eeks. A??%$",(=$+ 3ocation "5 Managers are responsi+le for inducting the reDuired num+er of apprentices as prescri+ed +y the State Apprenticeship Ad,isor under the Apprentices Act, $B<$ and the 5ules framed thereunder. The concerned "5 Department shall e,ol,e, in consultation ith Department Manager concerned, a detailed training programme for the Apprentices.

CONDITION SER4ICE

The 1onditions of Ser,ice in A3ST2M Po er 8ndia 3imited ould +e compara+le ith the +est companies in 8ndia, in the Business Segments e operate. 1orporate "5 Department shall maintain updated data on industry practices, and shall initiate discussions at appropriate inter,als at the Senior Management le,el hene,er major changes in our practices are indicated in ,ie of the changes in the industry practice. 2f course, this does not mean that the indi,idual items of conditions of ser,ice ill +e automatically re,ised in isolation hene,er any of our competitors change any of the components of the ser,ice conditions. 1onditions of ser,ice ill +e ,ie ed in their totality. 1onditions of ser,ice for all the +argaina+le employees shall +e go,erned +y the long term collecti,e +argaining agreements ith their recognised representati,e unions=associations, and on the +asis of the industry9cum9region practices. "o e,er, the conditions of ser,ices of compara+le companies in the region should +e judged in their totality. The +est indi,idual features of our industrial neigh+our should not +e compared in isolation ith our conditions of ser,ices. As far as possi+le, e shall aim to achie,e certain uniformity of ser,ice conditions on all company +asis. The conditions of ser,ice gi,en under this policy are applica+le to all the employees of the 1ompany and co,er areas like pro+ation, transfer, deputation, ser,ice agreement +onds, separations and retirements. The 3ocation "5 department may +e contacted for detailed rules and regulations pertaining to the conditions of ser,ice.

PROBATION
The purpose of pro+ation is to closely o+ser,e, monitor and guide the ne entrant to settle do n into the organisation, assimilate its culture and discharge the duties and responsi+ilities in accordance ith the accepta+le standards. Therefore, during the pro+ationary period, the performance and conduct of the employee should +e supporti,ely monitored on a continuous +asis. P%)@!,()"!%< P$%(). Pro+ationary period for all categories of permanent employees is as stipulated in their terms and conditions of appointment=the employment offer. 8n general, the pro+ationary period for all categores of permanent employees ill +e not less than si: months. P%)@!,()" R$?)%, The 3ocation "5 Manager shall +e responsi+le for realising the Pro+ation 5eports. C)"/(%>!,()"

2n successful completion of the pro+ation, the pro+ationer should +e confirmed in riting 8n respect of employees joining the ser,ices of the company ho ha,e +een confirmed prior to the date of annual salary re,ie , the employees ill +e eligi+le for the normal annual salary re,ie . 8n respect of employees, ho are on pro+ation at the time of the annual salary re,ie ill +e eligi+le for salary re,ie on confirmation in the ser,ices of the 1ompany .e.f. the date of confirmation, +ased on the guidelines follo ed for all other employees during the annual salary re,ie . 4urther, hile fi:ing the salaries of the employees at the time of appointment mentioned a+o,e, no pro,ision should +e made in anticipation of the annual salary re,ie to +e effected for the employees and the salaries should +e fi:ed in conformity ith those paya+le to others performing similar jo+s in the company. EJ,$"+()" )/ ,A$ ?$%(). )/ ?%)@!,()" 8n case of certain situations +eyond the control of the employee e.g. sickness, accidents or any such justifia+le and mitigating circumstances, here the performance of the employee cannot +e assessed due to insufficient period of ser,ice, an e:tension may +e granted co,ering the period of such a+sence, +ut not e:ceeding ) months. The decision regarding e:tension of pro+ation ill +e taken along ith the immediate super,isor in consultation ith the Segment=4unctional "ead. T$%>("!,()" .-%("# ,A$ ?$%(). )/ ?%)@!,()" The pro+ationer hose ser,ices are found to +e unsatisfactory either during the pro+ationary period or the e:tended period of pro+ation should immediately +e informed in riting a+out the same. The ser,ices of a pro+ationer hose performance as unsatisfactory ill promptly +e terminated at the end of the pro+ationary period, hich ould tantamount to non9rene al of the contract of employment. The letter terminating the ser,ices of a pro+ationer appointing authority. ill +e signed +y the

SER4ICE AGREEMENT BOND


L)"# D-%!,()" T%!("("# 5 D$'$;)?>$", P%)#%!>>$+ Training # De,elopment of employees at all le,els is an integral part of the 1ompany&s "uman 5esource De,elopment strategies.

8n pursuance of the training and de,elopment policy of the 1ompany, employees are nominated=sponsored for long term Technical Training, Management De,elopment, Post=Pre Doctoral 5esearch programmes in 8ndia and a+road, hich in,ol,es su+stantial in,estments of time and money. -ith a ,ie to ensure that the o+jecti,es of nominating=sponsoring employees to the aforesaid programmes are fulfilled and the 1ompany deri,es +enefits out of the learnings imparted to the employee, the employees nominated=sponsored for long term trainings in 8ndia or a+road ill +e reDuired to e:ecute a Ser,ice Agreement Bond ith the 1ompany, the details of hich are gi,en +elo K Period of training, ser,ice period and +ond amountK P$%(). )/ T%!("("# 3ess than ) months ) months to < months More than < months S?$=(!; A++(#">$",+ 4or fulfilling special de,elopment initiati,es undertaken +y the 1ompany or for e:ecution of specialised projects, employees are selected to +e mem+ers of Specialised Task 4orces, for hich the company de,elops the competencies of the employees through specific training # de,elopment programmes. -ith a ,ie to ensure that the aforesaid de,elopment initiati,es=special projects do not suffer +y ,irtue of Team Mem+ers lea,ing the ser,ices of the company, for hich the Team Mem+ers are specifically trained at significant cost +y the 1ompany, the employees selected as Team Mem+ers of such teams ill +e reDuired to e:ecute a Ser,ice Agreement Bond ith the 1ompany, the ,alidity period of hich shall +e three /)0 years ser,ice after completion of the training. 8n case of infringement or ,iolation of the +ond, the concerned employee ill ha,e to pay to the 1ompany a +ond amount of )(( T8!5. G$"$%!; The responsi+ility for o+taining the Ser,ice Agreement Bond from the concerned employees ould +e that of the location "5.The Ser,ice Agreement Bond e:ecuted +y the employee ould +e kept at the place of e:ecution in the safe custody of the location "5 Managers and ?nit "eads here no "5 Manager is positioned. 8n case of transfer of the employee, the Ser,ice Agreement Bond may +e transferred to the ne place of posting, along ith other records. P$%(). )/ S$%'(=$ ,) @$ =)>?;$,$. !/,$% ,A$ ?%)#%!> !il ' years ) years A>)-", )/ B)". !il $(( T8!5 )(( T8!5

SEPARATION
R$+(#"!,()" An employee ho ishes to lea,e the ser,ices of the company ill su+mit the resignation letter to his=her superior, gi,ing the notice as underK a0 7mployees in the Super,isory # -orkmen category K As stipulated in the terms and conditions of employment +0 All other 7mployees K Three months /or as stipulated in the terms and conditions of employment0 The notice period from the employee is for the company to locate a replacement, and therefore, should +e insisted upon. !otice period ill not ordinarily +e ai,ed unless continued presence of the employee concerned is not in the +est interest of the 1ompany. Before accepting the resignation letter, the "ead of the Department ill discuss ith the employee concerned to find out the reasons for su+mitting the resignation letter. 8nspite of such separations +eing painful for +oth sides, promises that cannot +e met +y ay of career gro th=compensation should not +e made. To maintain uniformity of practice and also to ensure that there is no possi+ility of any legal complications, the follo ing procedure shall +e follo ed in cases of resignationK a0 The formal letter of resignation ill +e for arded to the 3ocation "5 Manager ith the recommendations of the Departmental "ead. Such resignation letter ill +e sent in original. +0 The 3ocation "5 Department shall o+tain in riting on the letter of resignation itself, the decision regarding acceptance of resignation +y the Managing Director or concerned Segment=7:ecuti,e Directors. The processing time for deciding on acceptance of resignation or other ise should not normally e:ceed $( days. c0 The letter of acceptance of the resignation in the format at Appendi:9$ can +e communicated +y the Managing Director or concerned Segment=7:ecuti,e Directors or the concerned 3ocation "5 Manager. d0 The acceptance letter ill +e sent through the concerned Departmental "ead and a copy endorsed to the 4inance Department= 1ontroller. e0 After the acceptance of the resignation, the 3ocation "5 Department shall +e responsi+le for o+taining the I7:it 8nter,ie > in the line manager=functional head to ascertain facts relating to the resignation. 2n a si: monthly +asis /i.e.

*anuary 9 *une and *uly 9 Decem+er0, the data thus collected from e:it inter,ie s ill +e statistically processed and analysed ith a ,ie to pro,ide feed+ack to check the employee turno,er. The analysis +y 3ocation "5 Department ill +e in terms of location, department, category, academic +ackground, particularly institutions from here they graduated, age, se: and other demographic parameters, length of ser,ice, and more importantly, the type of organisations they are mo,ing to, the compensation package offered +y them and the precise reasons of lea,ing the company&s ser,ice. The analysis so done shall +e shared ith the concerned Segment=7:ecuti,e Directors and the 1orporate "5 Group. f0 2nce the acceptance of resignation is communicated to the employee, the concerned employee ill +e responsi+le to o+tain the necessary clearances from ,arious groups=departments on the !o Dues 1hecklist. The completed checklist should +e pro,ided to the "5 department at least a eek +efore the due relie,ing date. g0 Su+ject to the a+o,e, on the date of the relie,ing, the employee shall +e pro,ided ith the follo ingK 9 5elie,ing 3etter, in the format attached at Appendi: 9F. 9 Ser,ice 1ertificate, in the format attached at Appendi: 9%. 9 4inal Settlement. T$%>("!,()" )/ +$%'(=$+ )/ ?$%>!"$", $>?;)<$$+ The ser,ices of a pro+ationer hose performance as unsatisfactory ill +e promptly terminated at the end of the pro+ationary period or any e:tension thereof, hich ould tantamount to non9rene al of the contract of employment. 8n all such cases of e:tension of pro+ation, the pro+ationer ill +e communicated in riting, reasons for such e:tension/s0 and gi,en an opportunity to impro,e performance. Ser,ices of permanent employees ill +e terminated only according to the terms of appointment=employment and after complying ith all statutory reDuirements, +y gi,ing the stipulated notice or salary in lieu thereof. Any termination of an employee +y the company ill need clearance from 1orporate "5 and the Managing Director. 8f the ser,ices of a permanent employee are to +e terminated conseDuent to disciplinary procedure, it should +e ensured that all legal formalities in connection ith the domestic enDuiry are fully complied ith. The 3ocation "5 Manager ill +e responsi+le for doing so.

RETIREMENTS

R$,(%$>$", !#$ All employees shall retire from the ser,ices of the company on reaching the age of superannuation according to the terms of appointment. 2rdinarily, no e:tension ill +e gi,en +eyond the age of superannuation. The date of +irth as sho n in the School 3ea,ing 1ertificate or any other documentary e,idence su+mitted +y the employee and accepted +y the company at the time of appointment shall +e final for determining the age of the employee.

2.4 IT APPLICATIONS IN MAEKETING:


A3ST2M uses t o kind of 8T applications. 2ne is kno n as M8!T /Marketing 8ntelligence !et ork0. 8t is +een upgraded in 4rance e,ery day. 8t is a net ork in all A3ST2M throughout the orld. 8t +asically gi,es the marketing information happening throughout the orld. Another application hat they use is 2TMS /2pprtunity Track Management System0. 8t is a general application hich is +een used in all the departments. 8t is mainly project concerning application. 8t is +een upgraded +y those persons ho are +een gi,en the responsi+ility to manage one project9 the person ho is the proect leader.

6.2 RECRUITMENT- POLICY GUIDLINES


G$"$%!;
!o recruitment ill +e made ithout a formal appro,al, as in Section ).$, and ithout follo ing the prescri+ed recruitment procedures. -hene,er a ,acancy occurs, the first attempt should +e to e:amine hether the ork load could +e shared amongst others +y enriching their ork content, or +y other alternati,es like automation or system restructuring or +y upgrading the skills of some e:isting personnel. All selections ould +e made through duly constituted 8nter,ie Panels. !o recruitment shall +e made hich idely de,iates from the appro,ed jo+ specifications. Temptations to induct o,er Dualified persons should +e resisted unless there are clear career possi+ilities for such professionals ithin or outside the Segment=4unctional Area. 5ecruitment e:penses ha,e to +e +udgeted +y the respecti,e Segments=4unctional Groups +ased on additional manpo er projections for the year in Duestion.

E>?;)<>$", )/ L)=!; P$%+)"

4or all orkmen and all non9super,isory staff, the recruitment should prefera+ly +e from local candidates. 2nly here suita+le local candidates are not a,aila+le, others ould +e considered. 4or the super,isory positions, the recruitment ould +e +road +ased, though, other things +eing eDual, local candidates ould +e preferred. The recruitment of other Managerial cadre employees ould +e from any part of the country or o,erseas reflecting truly the cosmopolitan comple:ion of A3ST2M Po er 8ndia 3imited.

R$-$"#!#$>$",
An employee ho has left the ser,ices of the 1ompany ill not normally +e re9engaged. "o e,er, this guideline could +e rela:ed in e:ceptional cases, ith prior clearance of 1orporate "5 and appro,al of the Managing Director , here there is clear e,idence that the employee concerned has increased his occupational ,alue since lea,ing the 1ompany, and his ser,ice record ith the company as consistently good. 8n e,ery case of re9engagement, fresh appointment letter should +e issued. The norms for re9employment including terms of placement ill +e similar to any fresh employment from outside on merit. 8t should, ho e,er, +e ensured on re9engagement that the concerned employee is not getting undue ad,antage in compensation, position etc. ,is9Y9 ,is employees ho ha,e remained ith the company.

S)-%=$+
4ollo ing sources should +e utilised in the order of priority gi,en +elo sourcing candidates for recruitment. a0 I",$%"!; C!".(.!,$+ 7mployees of the 1ompany ould ha,e the first option for consideration for filling up a ,acancy. All internal ,acancies in the company shall +e =)>?-;+)%(;< notified in the *o+ Postings Data+ase and A3ST2M&s *o+s 2nline on the intranet. All employees shall +e eligi+le to apply against the ad,ertised ,acancies. The internal resources ould fall into the follo ing categoriesK $. Persons ho fit the ad,ertised jo+ reDuirements and can +e spared ith or ithout replacement immediately. 8n such cases, it ould +e desira+le to release the employee, since this is an opportunity for opening up ne career gro th options for the candidate. -hile making a decision regarding the release of the candidates, an o,erall macro9le,el ,ie should +e taken as distinct from Segment=4unction related interest only. hile

'.

Persons may +e a near fit to the position reDuirements, +ut may reDuire some +asic e:posure and training. The specific training=e:posure reDuired in such cases must +e indicated. Such employees should also +e encouraged to mo,e o,er from their present positions in order to pro,ide them ith good career opportunities, pro,ided they are good performers and ha,e the reDuired potential for gro th. There may +e employees ho may +e e:cellent for the jo+ in Duestion, +ut cannot +e spared immediately due to e:igencies of ork. 8n such cases, it ould +e desira+le that a time frame is agreed together +et een the concerned Segments=Departments, ith any conseDuential steps for replacement, ithin hich the candidate can +e spared.

).

8n all cases, the employee selected for the position should +e ready for relocation, if necessary, for his career ad,ancement. Applications of internal candidates should not +e held +ack, unless the application does not meet the minimum jo+ criteria, in hich case, the same should +e communicated to the concerned applicant. All the positions ill +e ad,ertised on the 1ompany&s electronic jo+ posting data+ases. !e,ertheless, in order to facilitate the process of generating internal applicants ho may not ha,e access to the electronic data+ases, 1orporate "5 ill for ard copies of all internal ,acancy ad,ertisements to 3ocation "5 groups ho ill then disseminate the same in the location in a suita+le manner. All applications recei,ed against internal ,acancies ill +e screened. The attempt ould +e to select the candidate ho is the M+est fitN for the position. 4or ensuring this, the shortlisted candidates ill normally +e reDuired to appear in an inter,ie as part of the selection process. -hene,er an internal candidate has +een selected for a particular ,acancy, the time period of his=her release from the current position may +e discussed and agreed upon +y the concerned Segments=Departments. !ormally, the employee ould +e reDuired to complete the assignments currently +eing attended to, and hand o,er the charge. +0 D!,! B!"E The 1orporate and the 3ocation "5 Groups shall maintain a Data Bank of professionals hose candidature could +e considered hene,er suita+le ,acancies occur.

The candidates should also +e encouraged to register their profile at A3ST2M&s e+site P .careers.alstom.com, here the same ill +e stored and can +e retrie,ed +y any of the A3ST2M companies looking for a matching profile. c0 U"+);(=(,$. !??;(=!,()"+/0!;E (" =!".(.!,$+ -ith increasing mo+ility amongst Dualified professionals in the jo+ market seeking challenging career openings, unsolicited jo+ applications ha,e +ecome a potential source of recruitment. "ence, it is necessary to reciprocate to these applicants not only as a matter of courtesy +ut also keeping in ,ie the 1ompany9 ide manpo er reDuirements. All applications recei,ed should get careful consideration. Those applications hich are of no o+,ious ,alue to us should +e straight a ay regretted as a matter of courtesy. But those ho meet the jo+ specifications of ,acancies e normally ha,e or likely to ha,e should +e reDuested to register their profile onto the 1ompany&s e+site P .careers.alstom.com. -here,er practica+le, the prospecti,e candidates could +e called for informal discussion, e,en if there is no immediate ,acancy. "o e,er, no assurance of any possi+le employment should +e gi,en at this stage. Those ho personally come to our offices=units e:ploring employment possi+ilities should al ays +e recei,ed ith courtesy. 2ne of the 3ocation "5 7:ecuti,es should recei,e and interact ith such alk9in candidates. Those ho are not likely to meet our reDuirements should +e politely told so. 4or others, they should +e reDuested to register their profile at the 1ompany&s e+ site. 8f felt appropriate, company&s standard Application 4orm may +e got filled up from the candidate for the purpose of storage in the data +ank. d0 C!>?-+ I",$%'($B+ The 1orporate and 3ocation "5 Managers shall maintain professional contacts ith leading academic institutions like 88Ms, 88Ts, 571s and other institutions of repute. The 1orporate "5 Group shall co9ordinate on all9company +asis, the induction of all professionals under the 1ompany&s Trainee Schemes or at entry le,els, as may +e necessitated +y the +usiness and the manpo er reDuirement plans. e0 R$/$%%$. C!".(.!,$+ The candidates referred +y ,alued and important customers or officials or leaders of 8ndustry and other @8Ps must +e seen +y 1orporate "5 or the 3ocation "5 Managers, as the case may +e, and the normal

courtesies should +e e:tended. "o e,er, their applications against any ,acancy should +e considered strictly on merit. f0 P;!=$>$", A#$"=($+ The ser,ices of Placement agencies ould +e used selecti,ely here no suita+le candidate could +e located from other sources or here the sourcing of the professionals has to +e done discreetly /head hunting0.

g0 0!;E (" (",$%'($B+ At times, here there is an urgency to fill the ,acancy /like that of 1hartered Accountants, 7ngineers ith $ to ) years of e:perience etc.0 and here the responses are likely to +e largely from local areas, , -alk9in98nter,ie s could +e held for reducing the cycle time for recruitment. "o e,er, this should +e resorted to only in e:ceptional circumstances. h0 E>?;)<>$", EJ=A!"#$ All legal o+ligations of the 1ompany under the 7mployment 7:changes /1ompulsory !otification of @acancy0 Act should +e complied ith. "o e,er, it is not mandatory to recruit from the candidates referred to +y the 7mployment 7:changes. Those ho meet our reDuirements should +e considered along ith other candidates. 5eturns prescri+ed under the Act and the 5ules framed thereunder should +e su+mitted in time +y the concerned 3ocation "5 Manager. i0 S)-%=("# ,A%)-#A P%(",-M$.(! Sourcing through print media ould +e resorted to only hen e could not locate suita+le candidates through other sources or here a national search is ad,isa+le in ,ie of the criticality of positions to +e filled in. As placing ad,ertisements in the print media are e:pensi,e, the justifications for resorting to the same may +e e:amined critically +y the 1orporate "5. All ad,ertisements should +e fully conforming ith the A3ST2M 1orporate Standards a,aila+le on the company intranet site. The ad,ertisements should clearly indicate the jo+ title, location, the candidate profile 9 age group, essential=desira+le academic and professional Dualifications, and the period and nature of e:perience.

The draft of the ad,ertisement material should +e prepared +y the 8ndenting Department Manager, and appro,ed +y the Segment Director=4unctional "ead. The 3ocation "5 Manager=1orporate "5 ould assist the Department in drafting the ad,ertisement. All ad,ertisements ould reDuire prior clearance of the 1orporate "5 and ould +e released through the 1ommunications Group. The selection of media ould depend on the target group. The ad,ertisement material should +e crafted thoughtfully to ensure ma:imum economy of space consistent ith functional simplicity and optimum impact on the target group. To ensure a Duick implementation regarding release of personnel ad,ertisement, the follo ing procedure should +e strictly and uniformly follo edK a0 +0 c0 d0 Ad,ertisement should +e sent only for the appro,ed positions. The draft ad,ertisement should +e sent to the 1orporate "5 Group. After considering other possi+ilities, the ad,ertisement ill +e sent in a standardised format to the 1ommunications Group ith the names of the ne spapers and the preferred dates of pu+lication. The 1ommunications Group ill release this ad,ertisement in line ith the group standards and ensure that the dates are strictly adhered to.

C)>?!"<F+ E>?;)<>$", A??;(=!,()" F)%>


5egardless of the sources, and the position to +e filled9in, all candidates hom e are considering for inter,ie should fill in the company&s Application form. 8nformation pro,ided +y the candidate in the form is the +asis of selection, if an offer is made. 8f any of the particulars mentioned in the Application 4orm turns out to +e false or inaccurate or there is e,idence that any rele,ant information has +een deli+erately suppressed, the employment could +e terminated ithout any notice.

S$;$=,()" I",$%'($B
I",$%'($B P!"$; Preliminary inter,ie for the recruitment of personnel selection panel consisting ofK ill +e conducted +y a

a0 The reDuisitioning Department Manager +0 Department "ead c0 A designated Senior Manager of another department=Segment con,ersant ith the jo+

d0

in,ol,ed,and, 3ocation "5. 8n case of recruitment to senior le,el positions, the Segment=7:ecuti,e Director shall chair the inter,ie panel along ith others as reDuired. 4or certain specialised recruitment, it may +e necessary to retain the ser,ices of recruitment consultants for reducing the cycle time and ensuring that there is o,erall consistency. 8n such cases, the short listed candidates must +e inter,ie ed finally +y the user Segment=7:ecuti,e Director along ith "5. Shortlisted candidate=candidates for recruitment in senior positions in the 1ompany ill +e seen +y the 1orporate "5 Group and the Managing Director prior to any offer of employment +eing made. 8n case of Senior le,el recruitments, it may also +e necessary for the shortlisted candidate=candidates to +e inter,ie ed +y the Segment Managing Director=the Segment "5 Director. I",$%'($B S=A$.-;$ 8nter,ie Schedule should +e fi:ed in such a manner that the candidates called for the inter,ie get sufficient enough time to arrange lea,e and make tra,el arrangements. 2rdinarily, a lead time of atleast $( days should +e gi,en. 8nter,ie letters should +e in the prescri+ed format. The Security and the 5eception should +e informed of the inter,ie and the names of the candidates on the day pre,ious to the date of inter,ie so that they could anticipate the candidates, and e:tend the reDuired courtesy. -here a cost analysis of holding inter,ie s at ,arious locations +y multiple panels pro,es to +e more economical and time sa,ing, the 1orporate "5 Group ill co9ordinate such nation ide recruitment, here,er necessary, follo ing the principles of formation of the 8nter,ie Panel mem+ers as mentioned earlier. 8n such cases, 3ocation "5 Managers ill form a part of the 8nter,ie ing Team. P%$-I",$%'($B F)%>!;(,($+ Before the inter,ie commences, the "5 Department should ,erify the originals of the 1ertificates=testimonials, including the most recent salary slip. Arrangements for the reim+ursement of the tra,el e:penses of the outstation candidates should ideally +e completed +efore the +eginning of the inter,ie . P$%/)%>!"=$/P+<=A);)#(=!; T$+,+

-here,er paper and pencil tests, such as 8Q, Aptitude, 8nterest Tests are prescri+ed, they should +e administered ell +efore the panel inter,ie starts. The Panel should ha,e the test results ith them. I",$%'($B P%)=$++ Photocopies of the filled in 1ompany 7mployment Application 4orm=1@, or a +rief rite up gi,ing the particulars of the candidates should +e gi,en to each mem+er of the 8nter,ie Panel. 8t is mandatory that +efore the inter,ie +egins the Panel mem+ers should formally meet, go through the 1ompany 7mployment Application 4orm=1@s, and e,ol,e a strategy for conducting the inter,ie . 8nter,ie assessment and selection recommendations should +e on the +asis of discussion and consensus among the Panel mem+ers, and should +e recorded in the prescri+ed format F(J!,()" )/ S!;!%< /)% ,A$ +$;$=,$. =!".(.!,$ !ormally, hile the market forces shall go,ern the salary fi:ation of candidates recruited from e:ternal sources, the salary of the selected candidates ill +e negotiated +y the "5 Manager on the +asis of the follo ing guidelinesK a0 The position and the position class at hich the candidate is +eing recruited. +0 2n peer group comparison, the salary offered to the selected candidate should not ordinarily e:ceed hat is +eing paid to others in the company ith same or similar career profile /academic +ackground, institutions and +atch, e:perience +oth ith the company and earlier0 and responsi+ilities handled. +0 8n case the candidate is +eing offered fi:ed tenure contract employment ith the company, the gross compensation package offered may +e higher than those in regular employment ith the company. c0 4i:ation of the compensation package for Senior Management positions needs to +e cleared +y 1orporate "5 and the Managing Director. M$.(=!; $J!>("!,()" 2rdinarily, the selected candidate should +e found suita+le in terms of the prescri+ed Medical Standards. -here this is not possi+le for ant of time, the candidate should +e clearly told that the employment offer is contingent on his +eing found medically suita+le. Medical e:amination can +e organised +y the company>s Medical 2fficer=authorised "ospital. The cost of such Medical 7:aminations ill +e reim+ursed +y the 1ompany. R$/$%$"=$ =A$=E+

5eference checks of all personnel recruited should +e done from the last employer, and also from atleast t o of the references mentioned. -here the incum+ent has orked for less than a year in the employment immediately pre,ious to his joining A3ST2M Po er the reference should also +e sent to the second last employer. 8n case of Senior Management positions, informal reference check on telephone must also +e done after o+taining the consent of the candidate +y a Senior Manager. !o such reference should +e made until the candidate has accepted the offer of employment and agreed to such references +eing made.

A??)(",>$",
T(>$ ?$%(). /)% %$=%-(,>$", 5ecruitment of staff in the normal course is likely to take three months from the date of receipt of the personnel reDuisition and the date of issuance of the offer of employment. -here an internal candidate has +een identified and selected for a particular position, the lead time ould +e dependant upon the agreement arri,ed at +et een the concerned Segments or Departments. E>?;)<>$", O//$% !o person ould +e engaged in ork unless he=she has recei,ed an employment offer in riting, and has accepted the same in riting prior to the date from hich the employment +ecomes effecti,e. The employment offer should +e in the standardised format in respect of offers to +e issued for management positions and duly signed +y a competent authority. The employment offer should +e accompanied +y the general terms and conditions of ser,ice The employment offer, in duplicate, should +e prepared +y the 3ocation or the 1orporate "5 and released after o+taining the signature of the competent authority. The selected candidate to hom an employment offer has +een made should sign the duplicate copy of the offer in token of his acceptance of the terms of appointment. 2nce the candidate has accepted the offer in riting, and indicated the date of joining, the reDuisitioning Manager should +e informed so that his initial induction programme and other administrati,e arrangements can +e made ell in ad,ance. Security and the reception should +e informed atleast t o days prior

to the date of joining so that the ne employee could +e courtesy, and ithout any procedural pro+lems. J)("("# F)%>!;(,($+

elcomed

ith

The selected candidate should complete the prescri+ed joining formalities on the date of his=her joining. "e=she should produce a relie,ing certificate from the former employer. The 3ocation "5 Department should ,erify the follo ing and record in riting ha,ing done soK Z The certificates=testimonials in original Z The most recent=latest salary certificate Z 5elie,ing letter from the former employer Z Pre9employment Medical e:amination report, duly certified Z All other information as per the application form i.e. age, Dualifications, e:perience etc. The employee ill fill in a joining report gi,en at Appendi: ). 8n addition, the candidate should +e asked to complete ,arious forms pertaining to Pro,ident 4und, Gratuity, Mediclaim etc., a checklist of hich ill +e a,aila+le ith the 3ocation "5. N),(/(=!,()" )/ !;; "$B !??)(",>$",+ -hene,er any employee joins the 1ompany, his=her appointment should +e notified in the 1ompany. A recommended format is gi,en at Appendi: 9 F. The notice should +e signed +y the Segment=7:ecuti,e Director=3ocation "ead=3ocation "5 Manager. P)+, S$;$=,()" F)%>!;(,($+ The 3ocation "5 Department should ensure that all prescri+ed Post Selection 4ormalities are follo ed, so that the ne employee joins ithout any procedural difficulties and a positi,e image of the 1ompany is con,eyed to him=her.

.! INTERNATIONL OPERATIONS
8.1 GLOBAL BUSINESS ACTI4ITIES:
8mpro,ing conditions for millions of people orld ide is the mission A3ST2M has set itself. -ith this challenge in mind, the company is de,eloping energy # transport infrastructure for tomorro , dra ing from its ealth of technological e:pertise. The electrical energy industry reDuires ne # inno,ati,e solutions to manage increasingly comple: net orks # generate cleaner, more fle:i+le # more cost effecti,e energy. A3ST2M is de,eloping ser,ices that meet these ne needs. The huge gro th of cities, coupled ith rising needs for mo+ility are +ehind ne market demands for impro,ed transport solutions.A3ST2M has already contri+uted e:tensi,ely to the rene al of transport systems # prides itself on understanding# anticipating cities # passenger e:pectationsL accessi+ility, comfort, speed # safety. GLOBAL SPECIALIST INFRASTRUCTURE IN ENERGY 5 TRANSPORT

A3ST2M is a glo+al specialist in energy # transport infrastructure. The company ser,es the energy market through its acti,ities in the field of po er generation, po er transmission # distri+ution, po er con,ersion # electrical contracting # the transport market through it&s acti,ities in rail # marine. A3ST2M offer it&s customers a complete range of inno,ati,e componenets, systems # ser,ice con,ering design # manufacture as ell as commissioning # long term maintenance # has uniDue e:pertise in systems integration, management of turnkey projects # application of ad,anc,ed technologies.

A GLOBAL COMPANY

DISTRIBUTION OF SALES

AFRICA, MIDDLE EAST ASIA PACIFIC NORTH AMERICA SOUTH & CENTRAL AMERICA REST OF EUROPE GERMANY UK FRANCE

4ollo ing the full integration of the po er generation acti,ities, A3ST2M today has annual sales in e:ce:: of G'' +illion # employes more than than $,F(,((( people in o,er E( countries. The company is listed on the Paris, 3ondon # !e Jork stock e:changes. PO0ER : THE GLOBAL FULL SER4ICE PRO4IDER To strengthen it&s position as a leading player in the po er generation market, A3ST2M reDuired in May '((( ABB&s %(H share in their recently formed joint company, no renamed A3ST2M Po er, a ne A3ST2M sector. "a,ing supplied '(H of the orld&s total installed po er generation capacity, A3ST2M is one of the orld&s leading suppliers of turnkey po er plents, all types of tur+ines / gas, steam, hydro 0, generators, +oilers, electrical control systems, en,ironmental protection systems as ell as a complete range of ser,ices, including plant modernisation # long term operation # maintenance, project de,elopment # financing.

As the full ser,ice pro,ider in po er generation, A3ST2M offers an e:tensi,e range of competiti,e products # ser,ices hich also set leading standards in en,ironmental impact. Through increased 5#D in,estment in ne # e:isting product de,elopment, A3SJ2M contineus to pro,ide customers ith the inno,ati,e solutions they need to remain competiti,e.

8.2 IT APPLICATIONS BUSINESS:

INTERNATIONAL

A3ST2M uses t o kind of 8T applications. 2ne is kno n as M8!T /Marketing 8ntelligence !et ork0. 8t is +een upgraded in 4rance e,ery day. 8t is a net ork in all A3ST2M throughout the orld. 8t +asically gi,es the marketing information happening throughout the orld. Another application hat they use is 2TMS /2pprtunity Track Management System0. 8t is a general application hich is +een used in all the departments. 8t is mainly project concerning application. 8t is +een upgraded +y those persons ho are +een gi,en the responsi+ility to manage one project9 the person ho is the proect leader.

8.2 RECRUITMENT POLICIES:


!o recruitment ill +e made ithout a formal appro,al, as in Section ).$, and ithout follo ing the prescri+ed recruitment procedures. -hene,er a ,acancy occurs, the first attempt should +e to e:amine hether the ork load could +e shared amongst others +y enriching their ork content, or +y other alternati,es like automation or system restructuring or +y upgrading the skills of some e:isting personnel. All selections ould +e made through duly constituted 8nter,ie Panels. !o recruitment shall +e made hich idely de,iates from the appro,ed jo+ specifications. Temptations to induct o,er Dualified persons should +e resisted unless there are clear career possi+ilities for such professionals ithin or outside the Segment=4unctional Area. 5ecruitment e:penses ha,e to +e +udgeted +y the respecti,e Segments=4unctional Groups +ased on additional manpo er projections for the year in Duestion.

".! RELEVANT INFORMATION


7.1 PLACEMENT HISTORY:
-hat other companiy offers di,ersity of cultures that you ill find in A3ST2M. 4rom the past fe years till today, in more than E( countries, they pro,ide glo+al managers # e:perts a truly international en,ironment hich meets their e:pectations for information sharing across the +orders. To de,elop manager&s a+ility to ork in an en,iroinment hich increasingly crosses geographical # international +oundares, A3ST2M routinely encourages short # long term placement in other countries. 8t also pro,ides opportunity to tra,el, e:perience different cultures # orking en,ironments # learn ne languages. To facilitate the daily ork, A3ST2M makes e:tensi,e use of information technology # +rings its people ,irtually closer +y impro,ing communications, net orking # +y simple sharing the +est ideas.

7.2 CAREER OPORTUNITIES:


A3ST2M firmly +elie,es that if they are a+le to satisfy your aspirations, they +uild the +est gaurantee for satisfying thair customer needs. 8n order to support this philosophy, they ha,e implimented professional procedures that gaurantee easier access to many opportunities offered +y the companyK I".('(.-!; A??%!(+!;

The indi,idual appraisal is used to carefully re,ie your situation. 8t ill occur atleast once a year, +et een you # your manager. 8n addition to accessing your performance in your current mission, this inter,ie is an opportunity for a frank # in9depth discussion a+out possi+le career de,elopments for you # the +roadening of your responsi+ilities or functional or geographic mo+ility. A plan is then dra n up to pa,e the ay for these de,elopments under the +est possi+le conditions. P$)?;$ R$'($B

Te people re,ie carried out during the meeting of management teams from ,arious operational entities, ena+les manager to do,etail any career de,elopments ishes e:pressed +y the employees ith the company&s future needs.

7.2 ALUMNI 0ORKING:


NA

7.4 PLACEMENT HINT


Basically the company is meant for the engineers. 4or non9engineers there is no opportunity to ork o,er here.

#. CURRENT NEWS
3.1 IN THE LIBRARY
DELHI METRO 3eading rail companies feel that the +iggest market for in,estment in the domestic rail sector ill +e in metro projects. The companies, including Siemens, Bom+ardier and Alstom, ha,e already got in,ol,ed ith at least one project in the metros ithin the past year. -hile Siemens has +agged a 5s '%9crore project to upgrade the signalling system under the Mum+ai 5ail @ikas 1orporation in *anuary, Bom+ardier has emerged as the sole contender for rolling stock upgradation for the same project. Alstom is already in,ol,ed in the Delhi Metro project for some time. -hile the 5ail ays are up+eat a+out the 5s $E,(((9crore fund that ill +e made a,aila+le during '(('9(E to upgrade safety in rail ays, along ith the recently sanctioned 5s A,(((9crore project for Golden Quadrilateral and 5s ),((( crore for the mega +ridges project, the companies feel that it ill +e the metro projects that ill +e in the limelight in the ne:t fe years. Besides Delhi, the 5ail ays are upgrading the net ork in Mum+ai and 1hennai, along ith further e:pansion in 6olkata. @ B Parulekar, e:ecuti,e ,ice9president of Siemens Transportation, said the company had done a +usiness of o,er 5s A( crore ith the 5ail ays in the pre,ious year, and as hopeful of a good gro th in the current year. "e said any signalling impro,ement in dense traffic sections, like Mum+ai, ould allo many more trains to run in e,ery section, thus sparing the need for additional tracks. Speaking in the same ,ein, 1 S Bansal, sector managing director of Alstom Transport, said ur+an transport should not +e thought of entirely +ased on rails. "o e,er, he agreed that it ould +e the chief agent for decongesting +ottlenecks in the metros. "e said Alstom as hopeful that the track safety de,ices currently +eing used in the 7uropean rail ays ould +e adopted +y the 5ail ays here also. Both Parulekar and Bansal felt that one of the prime reasons for faster offtake in metro rail ays as the lean organisational structure, compared to the lead time for other projects. Bom+ardier Transportation has also made a pitch for the 5ail ays to shift to stainless steel coaches instead of the mild steel coaches that are currently used. 7lan Gartner, ,ice9president, Bom+ardier Transportation said stainless steel

coaches can su+stantially reduce the long9term costs for the 5ail ays on their maintenance. The a,erage cost of such coaches are a+out four times the cost of coaches +uilt +y the 5ail ays. "e said in the corrosi,e en,ironment in hich the coaches ould operate, such a s itcho,er ould +e +eneficial and ould also handle the pressure of a collision +etter. DALAL STREET SPIKES Shares of "industan Motors ere up '.$% per cent today on reports that the company had decided to di,est its entire stake in "industan Po erplus, its joint ,enture ith 1aterpillar 1ommercial SA of Belgium. ALSTOM* JAIPRAKASH IN 60 > EURO DEAL Alstom has signed a %( million euro /a+out 5s '%( crore0 contract ith *aiprakash Po er @enture 3td /*P@30 for supply of hydro9generating plant eDuipment for the F(( mega att @ishnuprayag "ydroelectric project in ?ttaranchal. ALSTOM PO0ER TO FOCUS ON SMALLER PROJECTS Alstom Po er 8ndia, an energy infrastructure major hich supplies critical eDuipment for po er plants, has re,ised its +usiness strategy to focus on smaller projects due to slack in large projects.

3.2 OTHER SOURCES


Additional Shares of A3ST2M Projects 8ndia 3td listed on BS7 The Bom+ay Stock 7:change /BS70 has listed the ne eDuity shares of A3ST2M Projects 8ndia 3imited issued to shareholders of erst hile A3ST2M Transport 3td., A3ST2M Systems 3td. and A3ST2M Po er Boilers 3td. pursuant to their amalgamation ith A3ST2M Po er 8ndia 3td. and has permitted trading on the 7:change ith effect from Monday May '<, '((). These ',%<,(%,EFA shares rank pari passu company. ith the e:isting eDuity shares of the

The Scheme of Amalgamation as sanctioned +y the "igh 1ourt of Bom+ay on )$st 2cto+er, '(('. The scheme +ecame effecti,e on $st !o,em+er, '((' ith an appointed date of )$st March, '(($. The shares ere allotted and issued on $st !o,em+er, '(('. The merger as appro,ed +y Bom+ay "igh 1ourt on 2cto+er )$, '((' denying the o+jections raised +y t o opponents to the Scheme. hile

Appeals filed +y the opponents ere also rejected ith costs +y the Di,ision Bench of the Bom+ay "igh 1ourt on March '$, '((). A Special 3ea,e Petition filed +y one opponent as dismissed +y the Supreme 1ourt on May %, '((). ALSTOM is a long9term player in 8ndia in the energy and transport sectors. -ith $' manufacturing units, )( +usiness offices spread all o,er the country and total employee strength of <(((, it mainly operates in three major areas i.e. Po er, Transmission # Distri+ution and Transport. 8ts acti,ities range from erecting po er plants to supplying critical electrical eDuipment including +oilers, tur+ines and pollution control eDuipment. A3ST2M Transport is recognised as a high technology pro,ider of signaling solutions. ALSTOM has annual sales in e:cess of ') +illion euros and employs $$',((( people in o,er E( countries. The 1ompany is listed on the Paris, 3ondon and !e Jork stock e:changes. A3ST2M -ins major order in !orthern 8!D8A A3ST2M has signed a %( million 7uro /a+out 5s. '%( crore0 contract ith *A8P5A6AS" P2-75 @7!T?57S 3TD. /*P@30, 8ndia for the supply of major "ydro9Generating Plant 7Duipment for the F(( M- /F : $(( M-0 @ishnuprayag "ydroelectric Project located on the Alaknanda ri,er in ?ttaranchal. Mr. 4rancois 3oos, the ,isiting 4rench Minister for Trade # 1ommerce and Mr. Pierre Bilger, 1hairman of A3ST2M attended the signing ceremony together ith Dr. 6rishna Pillai, A3ST2M 1ountry President in 8ndia, senior officials of A3ST2M, *P@3 and the 4rench 7m+assy. The contract as signed +y Mr. Suresh 6umar, Managing Director, *aiprakash Po er @entures 3td. /*P@30 and Mr. Andre Botto, Business De,elopment Director, "ydro Po er Segment, A3ST2M 4rance together ith Mr. 7 * 4erdinand, 7:ecuti,e Director, "ydro Segment, 8ndia at an official function in the capital. The turnkey contract co,ers the supply and super,ision of erection of tur+ines, go,erning systems, spherical ,al,es, +utterfly ,al,es, generators, static e:citation system, +us ducts, computeri;ed po er plant control and monitoring systems and F(( k@ G8S and ca+les. This prestigious project is +eing +uilt +y *P@3 on Build 2 n 2perate /B220 +asis and is one of the fe large 8PPs +eing set up in 8ndia in the hydro sector. The ci,il orks for the project are already in an ad,anced stage. The project ill +e managed +y A3ST2M&s "ydro Po er Segment in 4rance, eDuipment and components +eing supplied from the 1ompany&s manufacturing facilities in Greno+le and Belfort, 4rance, and also from 8ndia. The Project is scheduled for commissioning in Decem+er '((<. @ishnuprayag "ydro Po er Project is a run off the ri,er project ith an estimated cost of 5s $B(( 1rore /appro:imately 7uro )A( million0. 8t has all the statutory

appro,als in place. The escro agreement as ell as the financing agreements ha,e already +een signed +y the promoter. The project, designed to produce o,er t o +illion units of po er, is e:pected to mitigate the po er shortage in !orth 8ndia hen commissioned. A3ST2M is the glo+al specialist in energy and transport infrastructure. A3ST2M ser,es the energy market through its acti,ities in po er generation and po er transmission and distri+ution, and transport through its acti,ities in rail and marine. 8n fiscal year '(($=(', A3ST2M had annual sales in e:cess of [') +illion. A3ST2M employs $$',((( people in o,er E( countries. A3ST2M is listed on the Paris, 3ondon and !e Jork stock e:changes.

ANNEXURE II A BRIEF REPORT ON INDUSTRIAL VISIT

INDUSTRIAL 4ISIT BY THE COLLEGE


ATLAS CYCLES
T"7 157D8T 5ating 8nformation Ser,ices of 8ndia /1risil0 has assigned A plus /single A plus0 rating to the 5s. $<.%( crore non9con,erti+le de+enture /!1D0 issue of Atlas 1ycle /"aryana0. Atlas, formely Atlas 1ycle 8ndustries, has +een placed under rating atch ith de,eloping implications. The rating atch is +ased on 1risil>s opinion that ongoing de,elopments in the company regarding o nership and management control +et een ,arious mem+ers of the promoter family and the possi+le re9organisation of the operations of Atlas into three su+sidiaries could ha,e a material impact on the credit risk profile of the outstanding de+t instrument. Atlas had initiated a restructuring e:ercise in $BBB9'((( here+y three ne holly o ned su+sidiaries ere created, each +eing named after the respecti,e cycle manufacturing locations, namely, Atlas 1ycles /Sonepat0, Atlas 1ycles /Sahi+a+ad0 and Atlas 1ycles /Malanpur0. Although the originally stated intention of setting up these su+sidiaries as to treat them as profit centres, current de,elopments indicate the likelihood of a distri+ution of assets and lia+ilities into these companies. 1risil>s rating is +ased on the uncertainty associated ith the o nership of the rated de+t as ell as the credit profile of the ne holder of the said instrument. The rating action also takes into account the company>s satisfactory operating performance for '(((9($. 1risil is in dialogue ith the management of Atlas to re,ie the ,arious options +eing contemplated +y the management. the implications of

BIBLIOGRAPHY

BIBLIOGRAPHY

The datas # the facts # figures

hich is +een mentioned in the report are +een

collected from ,arious different sources.

BOOKS 5 MAGAOINES
T"7 SPA56 /Q?A5T753J MAGAT8!7 24 A3ST2M0 B52?1"75S 24 A3ST2M A!!?A3 57P25T 24 A3ST2M A!!?A3 57P25T 24 !.".P.1

0EB SITES
.nhpcindia.com .po ermin.nic.in .cea.nic.in .alstom.co.in

DIRECT COMMUNICATION
S7!825 7O71?T8@7S 24 !.".P.1 STA44S 24 A3ST2M 7MP32J77S 8! M8!8ST5J 24 P2-75