UP Rajya Vidyut Utpadan Nigam Ltd

Corporate Plan
(2005-2012)

Cheap electric power is essential for the development of a country. In fact, modern life depends so largely on the use of electricity that the quantity of electricity used per capita in a country is an index of its material development and of the standard of living obtained in it. Apart from its use in industrial undertakings, electricity has a remarkable diversity of application. Electricity can provide cheap power for pumping water for irrigation, and for numerous operations in agriculture and in the home. Extensive use of electricity can bring about the much-needed change in rural life in India. It cannot only improve methods of production in agriculture and encourage cottage and small scale industries but can also make life in rural areas much more attractive and thus help in arresting the influx of rural population into cities. -India's First Five-Year Plan 1

Prelude
A Corporate Plan outlines the road map to be taken by the company in achieving the vision. A well-written and Institutionalized long term Corporate Plan is of strategic importance. It serves as a reference for developing detailed strategic and operational plans in keeping with the vision. It also helps in measuring the achievements of the Organisation against the plan. Recognizing this importance of a long term Corporate Plan, UPRVUNL has initiated this process. The Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) was incorporated on Aug.25, 1980 for construction of new Thermal Power Stations in the State Sector in Uttar Pradesh. This Nigam constructed and operated 2X210 MW units at Unchahar Thermal Power Station, which was on Feb 13, 1992 transferred to NTPC against the Electricity dues of the then UP State Electricity Board (UPSEB). Subsequently, the work of Maintaining & Operating the Thermal Power Plants in the State Sector was transferred to UPRVUNL on 14 Jan. 2000 on unbundling of UPSEB as per UP Electricity Reforms Act, 1999 and operation of UP Electricity Reform Transfer Scheme, 2000. From that date UPRVUNL owns and operate the following Thermal Stations in Uttar Pradesha. Anpara (3*210 + 2*500 = 1630 MW) b. Obra (4*40 + 3*94 + 5*200 = 1442 MW) c. Harduaganj (1*40 + 2*55 + 2*60 + 1*105 = 375 MW) d. Panki (2*105 = 210 MW) e. Parichha (2*110 = 220 MW) Among these units, many of them have crossed their useful working life of 25 years, and some of them are closed since long, amounting to an effective available capacity of 3777 MW only. As against the peak demand for power at over 7500 MW, the actual average generation in the State is around 2600 MW only. Add to this the imports of about 3000-3200 MW of power, the total availability of power to the consumers is around 5400-5600 MW, leading to a deficit of 25-28%.

Power generation scenario in the country

The total installed power generation capacity in the country is as follows -2 Table - Power Generation In India Sector MW %age State sector 70,447 57.1 Central sector 39,908 32.3 Private sector 13,187 10.6 Total 123,542 100.0 --------------------------------------------------------------------------------------------------------------------------------1- Source Website of the Ministry of Power, Government of India. http://planningcommission.nic.in plans/planrel/fiveyear/Ist/1planch26. html accessed from the internet on Dec.30, 2005 2 Source Website of the Ministry of Power, Government of India, http//powermin.nic.in/ISI' SERVLETS/internet jap accessed from the internet on December 30, 2005. -----------------------------------------------------------------------------------------------------------------------------------------------------------------

Table - Power Generation Mix Fuel Coal Gas Oil Thermal Hydel Nuclear Renewable Total MW 68,308 12,430 1,201 81,939 32,135 3,310 6,158 123,542 %age 55.4 10.0 0.9 66.3 26.0 2.7 5.0 100.0

Of this total installed capacity, the generation available for meeting the peak demand of 88,667 MW is only 80631 MW, leading to a deficit of 9.1%. On the other hand, the status of rural electrification in India is as follows Table: Village Electrification Status No. of villages (census 1991) No. of villages electrified (31 March, 2004) Electrification % No. of rural households (census 2001) No. of villages having access to electricity Electrification % 593,732 474, 982 80% 138,271,559 60,180,685 44%

The Ministry of Power, GOI has set a goal: "Power for all by 2012" (see Annexure I for more details)"3. In order to achieve this mission, the government has set the following specific objectives. Sufficient power to achieve GDP growth rate of 8% Reliable power Quality power Optimum power cost Commercial viability of power industry Power for all In particular, the strategy for enhancing power generation would focus on low cost generation, optimization of capacity utilization, controlling the input cost, optimization of the fuel mix, technology up gradation, and utilization of non-conventional energy sources. The national scenario of power generation is as follows 4: Table - Sector Wise Position Capacity (MW) Plant Load Factor (%) 2003-04 2004-05 2005-06 20022003-04 2004-05 2005-06 03 22710.00 24210.00 25527.50 77.17 78.69 81.45 81.91 36871.50 36971.50 37846.50 68.93 68.80 69.77 67.30 3045.00 3045.00 3075.00 79.10 80.79 85.12 85.37 62726.50 64226.50 66449.00 72.34 72.96 74.82 73.71

Sector 2002-03 Central State Private Total 21790.00 36316.50 3045.00 61151.50

-------------------------------------------------------------------------------------------------------------------------------3 Source Ministry of Power, Government of India, http//powermin.nic.in/indian-electricity-scenario/power-for-all-target. htm accessed from the Internet on December 30, 2005. 4 Source Central Electricity Authority, government of India. http/cea.nic.in/god/opm/Thermal-Performance-Review/0405/CEA-Thermal%20Performance%20Review040 5/INDEXpdf accessed from the Internet on August 31,2006. ----------------------------------------------------------------------------------------------------------------------------------------------------------------

Strategic intent of UPRVUNL

The comparative figures for the five thermal plants operated by UPRVUNL are as follows: Table - UPRVUNL PLF Plant
Obra Panki Harduaganj Parichha Anpara Total

Capacity MW 2004-05 1442 242 375 220 1630

3909

PLF (%) 2004-05 43.96 49.21 19.21 50.19 80.60

57.54

Capacity MW 2005-06 1442 210 375 220 1630

3877

PLF (%) 2005-06 45.22 51.47 16.50 41.66 83.27

58.58

Table - UPRVUNL Oil Consumption Plant Capacity MW 2004-05 1442 242 375 220 1630
3909

Obra Panki Harduaganj B Parichha Anpara Total

Sp.Oil Consumption 2004-05(KL/MW) 4.16 3.57 11.41 3.93 0.72

2.34

Capacity M.W. 2005-06 1442 210 375 220 1630

3877

Sp.Oil Consumption 2005-06 4.16 4.94 11.85 8.60 0.57

2.43

Barring the Anpara TPS, all other stations need significant improvement in their efficiency, while it is recognized that the equipments in these plants have crossed their useful life of 20 years and still running, even after neglecting the overhauling norms and thus leading to lower efficiencies. In order to make them efficient, refurbishment renovation and modernization plans need to be high on priority. In order to expedite the process of efficiency improvements and life extension projects, a long-term perspective and direction on how the Nigam has to grow and sustain effective performance is imperative. In order for UPRVUNL to operate as an independent corporate entity, it has to adopt modern management techniques for planning, resource mobilization, with optimal management of its resources for achieving their efficiency targets and effective performance. Apart from this UPRVUNL has also to add to its existing capacity, in order to bridge the gap between demand (restricted and unrestricted both) and the supply, keeping into account the quota from Central Generating Stations and the IPPs.

Chapter 1 - The Corporate Agenda

1.1 VISION: "To become the best integrated state power utility, producing reliable,

quality, competitive and eco-friendly power; making UP self-reliant in power; powering UP's all-round development."
1.2 MISSION: The mission of UPRVUNL for 2012 is as follows: In achieving our vision, we will strive: To accelerate addition of power generation capacity by extending existing projects and installing new plants to make available reliable and quality power, using stateof-the art technologies. Adopt a broad based capacity portfolio including Hydro Power, LNG and nonconventional and eco-friendly facts. To enhance the power generation through increasing efficiency of operations above the national level by periodic refurbishment and renovation & modernization of plants, and maximizing the availability of units. To reduce the cost of generation through efficient management practices including implementation of Commercial Accounting system and Enterprise Resource Planning. Ensure timely realization of revenues. To focus our efforts to meet all environmental norms and standards in order to become a socially responsible corporate entity with thrust on environment protection, ash utilization, community development and energy conservation. To become the preferred employer by incorporating total quality philosophy in all human resource policies and norms to continuously attract and develop competent and human resources to match national standard. To explore opportunities for vertical integration in areas such as power trading, distribution, transmission, coal mining etc. 1.3 OBJECTIVES To realize the vision and mission, seven key corporate objectives have been identified. These objectives would provide the link between the defined mission and the functional strategies: 1.3.1
BUSINESS PORTFOLIO GROWTH

To consolidate UPRVUNL position as the leading state thermal power generation company in India and establish a presence in hydropower segment. To broad base the generation mix by evaluating conventional and non-conventional source of energy to ensure long run competitiveness and mitigate fuel risks. To diversify across the power value chain in the State by considering backward and forward integration into areas such as power trading, transmission, distribution, coal mining, coal beneficiation etc. To develop a portfolio of generation assets in domestic markets. To establish a strong service brand in the domestic markets. 1.3.2
CUSTOMER FOCUS

To foster a collaborative style of working with customers, growing to be a preferred brand for supply of quality power. To expand the future customer portfolio through profitable diversification into downstream businesses, direct supply.

To ensure rapid commercial decision making, using customer specific information with adequate concern for the interests of the customer. 1.3.3
AGILE CORPORATION

To ensure effectiveness in business decisions and responsiveness to changes in the business environment by: - Adopting a portfolio approach to new business development. - Continuous and coordinated assessment of the business environment to identify and respond to opportunities and threats. To develop a learning Organisation having knowledge-based competitive edge in current and future businesses. To effectively leverage Information Technology to ensure speedy decision-making across the Organisation. 1.3.4
PERFORMANCE LEADERSHIP

To continuously improve on project execution time and cost in order to sustain long run competitiveness in generation. To operate & maintain UPRVUNL stations at par with the best-run state utilities in the country with respect to availability, reliability, efficiency, productivity and costs. To effectively leverage Information Technology to drive process efficiencies. To aim for performance excellence in the diversification businesses. To embed quality in all systems and processes. 1.3.5
HUMAN RESOURCE DEVELOPMENT

To enhance organisational performance by institutionalising an objective and open performance management system. To align individual and organisational needs and develop business leaders by implementing a career development system. To enhance commitment of employees by recognizing and rewarding high performance. To build and sustain learning Organisation of competent class professionals. To institutionalise core values and create a culture of team building, empowerment, equity, innovation and openness which would motivate employees and enable achievement of strategic objectives. To install and implement state of the art systems in conformity with similar function successful Organisations. To effectively leverage Information Technology in promoting complete transparency. 1.3.6
FINANCIAL SOUNDNESS

To maintain and improve the financial soundness of UPRVUNL by prudent management of the financial resources. To continuously strive to reduce the cost of capital through prudent management of deployed funds, leveraging opportunities in domestic markets. To develop appropriate commercial policies and processes which would ensure remunerative tariffs and minimize receivables. To continuously strive for reduction in cost of power generation by Improving operating practices. 1.3.7
SUSTAINABLE POWER DEVELOPMENT

To contribute to sustainable power development by discharging corporate social responsibilities. To lead the sector in the areas of resettlement and rehabilitation and environment protection including effective ash-utilization, peripheral development and energy conservation practices.

1.3.8

CORE VALUES

This Corporate Plan provides details of the overall agenda for UPRVUNL. The successful delivery of the agenda would require a risk taking dynamic leadership along with committed workforce that identifies with and supports the vision. To ensue realization of this corporate agenda, a set of core values should be central to, and govern each activity of the Organisation: Customer focus Organisational pride Mutual respect and trust Initiative and speed Total quality

Chapter-2 - Review of the past performance

"Ships are safest in the harbor, but they are not meant to be there. They have to sail long and hard and face stormy seas to reach the comfort of a desirable destination. Hence, progress requires us to take calculated risks and make bold moves." - N.R. Narayanmurthy Chairman & Chief Mentor, Infosys Technologies 2.1 GENESIS OF UPRVUNL UP Rajya Vidyut Utpadan Nigam Ltd. was constituted on 25 Aug., 1980 for construction of new Generation Projects in the State Sector. The first Thermal Power Station constructed by UPRVUNL was Unchahar TPS of 2x210 MW capacity. It was being operated by UPRVUNL, when it was transferred to NTPC on 13.2.92 against the energy dues of the then UP State Electricity Board. On 14.1.2000, with the enactment of UP State Electricity Reforms Act 1999 and operation of UP Electricity Reforms transfer Scheme 2000, operations of following projects were transferred to UPRVUNL on unbundling of UPSEB Anpara 1630 MW Obra 1442 MW Harduaganj 375 MW Panki 242 MW Parichha 220 MW 2.2 SHARE IN THE STATE SECTOR Out of a total Restricted Peak Demand of 7500 MW in the state of Uttar Pradesh, demand of only about 5400-5600 MW is being met. UPRVUNL contributes about 2000-2400 MW out of this demand. It thus contributes about 40-44% of the power available in Uttar Pradesh. 2.3 CHALLENGES AHEAD The position of Operational Efficiency at the time of handing over of the TPS (mentioned above at para 2.1) to UPRVUNL could be estimated from the fact that the - overall PLF of these plants then stood low at about 50%, the oil consumption high at about 3 KL/MU, the Nigam was heavily over-staffed at the non-executive level and most of the Executives and Supervisory personnel working in the Nigam were working here on deputation. Those working on deputation today are building pressure for their repatriation to the parent body. On unbundling of UP State Electricity Board, there was an atmosphere of skepticism, mixed with anxiety, prevailing amongst the Nigam personnel. During the decades of 90s all over the country and in UP too, the period was marked by a complete thrust towards privatization of Power Sector. This led to anxiety and apprehension in mind of personnel working in this sector regarding their future. It was not realized at that time that there was such a vast potential for expansion in this sector and private public and joint sector all three actually would have to go all out to gear up in meeting the steeply growing demand within the State. And in spite of these efforts, the challenge of meeting this demand shall still remain a daunting task. With this realization, Nigam now has a challenging task of installing confidence amongst its personnel, improve the operational efficiency of its Thermal Power Stations, build new capacities and cater to the new Regulatory Environment in these adverse circumstances. In fact with the advent of private sector, it has set a new benchmark in power generation and pricing.

2.4 PERFORMANCE OVERVIEW: 2.4.1 POWER GENERATION: The graphs and tables showing the Availability Factor for the period Apr.2001 Feb.2006, PLF and the Oil Consumptions for the period April 2000 - Feb. 2006 for various Thermal Power Stations and overall UPRVUNL are attached as table 2.1, 2.2 and 2.3 and as chart-1 to chart-18. These charts clearly under the improvement in performance, for short durations, in those areas where some R&M works were taken up, and then again steady decline thereafter. In other areas, due to aging and nonadherence of annual overhauling schedules, it is a case of consistent decline. 2.4.2 FINANCIAL PERFORMANCE: The financial performance data of the Nigam for the period 2000 - 2005 is placed at tables 2.4, 2.5 and 2.6. This data indicates that at the Macro level, the Nigam is running in loss from day one, but the Net Losses/year are showing a downward trend, which is definitely a positive sign. Micro Analysis with the help of various Financial Leverages and Ratios show that - the Expenditure to Income, Cost of Generation to Income, Administrative Expenditure to Income, Debt - Equity Ratio and Debtor's Turnover are showing a rising trend and Operational Profit to Income & Net Fixed Assets to Net Worth are showing a declining trend over all this picture does not augur well for the future and underlines the need for strong financial discipline. Some other leverage Current Assets to Current Liabilities, Revenue to Net Fixed Assets are rising and Employee Cost to Income is declining which shows there is a hope and scope for improvement. The Repair and Maintenance Cost to Income were declining in the period 2000 - 04, but have shown a rising trend in 2005. This might either be because of increase in maintenance and overhauling activities in 2005, but substantiation by an improvement in Plant Performance is not visible. Or with the waning of effect of R&M taken up in the past, the plant performance is going down; thus the plant breakdowns are more frequent resulting in increase in the maintenance cost. In either case, moving ahead with utmost caution with proper monitoring based on real time data is recommended. With large new capacity additions that shall have to be taken up to meet the demand, the Debt - Equity Ratio of the Nigam is bound to rise steeply gradually tending to reach about 4:1 levels from existing level of 1.92:1, which shall be dangerously high. This indicates that a rigorous monitoring of the expenditures, technical performance and revenue realization has to be continuously carried out in order to ensure the required Cash Flow for debt servicing, meeting the routine fuel and establishment expenditures and to keep the payables within manageable limits. 2.4.3
COMMERCIAL PERFORMANCE:

Table - 2.7 shows the year wise position of energy sales, billing, realization and the receivables. This table shows a declining trend in units sold, a rising trend in billing (due to increase in tariff), no trend in realization since there is no fixed relationship in billing and realization, and a steep increase in receivables. The trend can be very well visualized at chart 19. This again issues a note of caution to ensure required cash flow for the organization in future. 2.5 ORGANIZATIONAL STRUCTURE AND BUSINESS PROCESSES: The organizational structure and the systems in vogue in the Nigam are a legacy of the past, when there was public sector monopoly; emphasis was more on quantity of production and generation of jobs rather than its economics. UP Power Sector with the help of the existing organisational structure and business processes had provided leadership to the national power sector till the early 80s. But, with the advent of 90s when competition and privatization started gaining currency, the emphasis gradually started shifting to clean and economic production and here UP Power Sector started losing ground. Now with private and joint sectors becoming a reality as well as necessity, the new competitive and regulatory environment requires a more scientific functionality based organisational

structure; backed with efficient and informed business processes; which are more conducive to competitive environment promote efficiency and ensure better management of available capacity and other resources in order to achieve optimal generation at low cost. These coupled with ABT and MBMS environment, as visible in future after enactment of Indian Electricity Act 2003, requires wide availability of true and online data to meet the challenges for ensuring optimal utilization of opportunities and resources and hence provide optimal ROI to the stakeholders. Restructuring of the organization, carrying out SWOT analysis followed by re-engineering of the business processes in line with the best available, having the capacity to sustain future competition within the periphery of the public sector requirements, is an immediate need. Following areas are very important and need to be looked upon at priority2.5.1
HUMAN RESOURCE MANAGEMENT:

The HR policies inherited from UPSEB were suitable to the then predominant function of Transmission and Distribution, which were geographically spread out service functions. The requirement of a service delivery organization differs vastly from a production oriented centralized organization. Nigam basically being a production organization, clustered at few projects and the Corporate Office in an industrial environment, it is required to review these policies in this light and re-engineer them in line with the best available in like function/business successful organizations. 2.5.2
COMPUTERIZATION, DATA BASE AND DECISION MAKING:

In the 80s and 90s, emphasis was more on the generation figures with less wightage to their economics. In the present competitive regulatory ABT, MBMS multi year tariff environment, production has to be optimum, cost effective and transparent with data capable of predicting the expenditures and tariffs for the future. This requires availability of real time and true data of the operations to the regulator and decision makers. In brief, the efficiency of future decision-making, in future, shall depend a lot on the speed of availability and trueness of the data. Complete computerization and interconnectivity of all the business processes is, therefore, required. 2.5.3
CONTRACT, MATERIAL AND INVENTORY MANAGEMENT:

The existing systems were adopted to suit the Transmission and Distribution, major functionalities in the UPSEB period which were geographically distributed all over the State and where less number and value of inventories were handled at a single location. As on date, in the Nigam, these functions are being carried out differently at different TPS. They now need to be streamlined with a common procedure with an idea to minimize the inventory turnaround time ensuring the quality. The inventory requires standardized coding and physical placement procedure. The contract system also needs to be standardized to ensure the speed, smoothness and transparency in their delivery systems. 2.5.4
FUEL MANAGEMENT SYSTEM:

About 60-65% of the total cost of generation of thermal electricity is attributed to the fuel - Coal and Furnace Oil/HSD, major cost out of these too being to coal. Proper recording of quantity, quality, receipt and consumption of coal is, therefore, very vital for the Nigam. Transportation costs are also very vital component for fuel management as they contribute significantly to the cost. With increasing demand and controlled stocks, choice of coal source in terms of coal blocks is developing as a major strategy for location of new capacities and feeding of the existing capacities. A detailed analysis of Fuel Management System, filling up the gaps with the needs of the day, has become imperative.

10

2.6

The above shall require: A dynamic enterprising innovative risk taking leadership willing to take deep HR initiatives, along with a committed and skilled workforce is required to install confidence amongst NIGAM personnel and establish a healthy performing environment and culture. Induction of young and new blood is an essence and could contribute vitally in this direction. Nigam to develop a 4 pronged strategy for the future i) Manage optimal operations of the existing capacity. Carry out timely R&M and annual overhauling activities to ensure its health and safety. ii) Refurbishment of the existing plants to ensure their extended life. iii) Make new capacity additions for meeting the future demands. iv) Act as facilitator for Private and Joint Sectors in installation of new plants in the state. Carrying out SWOT analysis of the existing business processes in vogue; reengineering and computerize them, retaining the strengths, to suit the present day progressive and competitive environment and meet the futuristic ABT and MBMS needs. In order to ease and contain the existing skepticism amongst the Nigam personnel, a direct communication strategy be adopted. Motivate them with improved incentive and reward mechanism (not necessarily monetary in nature), promote performance innovation and entrepreneurial skills. Performance evaluation should lay emphasis on functional targets to promote individual contribution to the plant performance.

11

Chapter- 3: Business Portfolio

" Vision without action is a day dream, Action without vision is a nightmare, Vision with action can change the world" - A Japanese Proverb " You raise me up, so I can stand on mountains. You raise me up, to walk on stormy seas, I am so strong, when I am on your shoulder. You raise me up more than what I can be." - Russel Watson The Indian Power sector has witnessed and can anticipate several further changes in the business and regulatory environment. UPRVUNL faces significant uncertainty in the availability and economic viability of Thermal Fuels. The challenged health of State Discoms presents a threat to the cash flow of GENCOs. However, on-going changes in the customer environment also provide opportunities for improving customer mix with the enactment of Electricity Act, 2003. The Power Sector offers a mix bag of opportunities and threats needing to review the business strategy and portfolio in the light of these changes. 3.1 GROWTH OF GENERATION BUSINESS (A) NATIONAL PER CAPITA CONSUMPTION AVERAGE BASIS: The population of UP as per census 2001 was 16.605 crore with a decadal population growth of 25.8%. As per projections, it is expected that by 2011 the population of the State is expected to be around 20.62 crore, if the Total Fertility Rate (TFR) continues at the same level of 3.99 as in 2001, and shall be 19.86 crore if it is contained to 2.1 by 2016. Presently, the National Average of per capita consumption is 6066 units in 200405, which is targeted at 10007 units by 2012. Taking a population of about 20 crore by 2012; the peak demand at national per capita consumption level, shall be of the order of 20,00,00,000 x 1000 MU = 2,00,000 MU 1000,000 The maximum power demand corresponding to this energy shall be as follows 2,00,000X1000 = 38,052 MW, where 0.60 is the assumed load factor. 0.60X24X365 Presently, the per capita consumption of power in Uttar Pradesh stands at about 372 units and the installed capacity in the State Sector is 3877 MW as Thermal and 522 MW as Hydro generating about 2400-2600 MW. By importing about 3200 MW from CGS, we are able to meet a peak restricted demand of about 5600 MW, leaving a wide gap between the demand met and expected unrestricted demand. As apparent from the above, there is a huge gap between the expected demand and available supply comparing the demand calculated on the basis of National Average per capita consumption basis for 2012 with the existing capacity. The planning has, therefore, to be carried out on Restricted Demand basis. In view of this gap every effort has to be made for construction of new generating projects, in any sector whether public private or joint, in order to aim for meeting the unrestricted demand at some later stage, filling up this gap by extra efforts and capacity gradually. -------------------------------------------------------------------------------------------------------------------------------5 Source http://populationcommission.nic.in/cont-en-up.htm 6 Source Ministry of Power, Government of India http://www.powermin.nic.in/JSP_SERVLETS/internal.jsp linked with http//powermin.nic.in accessed from the Internet on September 25, 2006. 7 Source Ministry of Power, Government of India, http://tempweb30.nic.in/JSP_SERVLETS/internal.jsp linked with http//powermin.nic.in accessed from the Internet on September 25, 2006.

--------------------------------------------------------------------------------------------------------------------------------

12

(B)

RESTRICTED DEMAND SCENARIO:

Keeping apart the national average, if per capita consumption of even 700 units is estimated by 2012, the State shall require 700x38,052= 26,636 MW 1000 On the other hand, a comparative position of demand from 2007-12, as estimated by UPPCL, is placed at table-3.1 below, which shows a maximum demand of about 12550 MW by 2012 with Energy requirement of 70613 MU. This shall mean a per capita consumption of 353 units. All further calculations have been carried out on these UPPCL estimations.
Table 3.1: Reference Forecast For Period FY 07 To FY 12 As Per UPPCL

Financial Year 2007 2008 2009 2010 2011 2012

Annual Energy Required (In MU) 48518 51436 53999 64023 67235 70613

Annual Peak Demand (In MW) 8249 8517 8930 11514 12007 12550

As on date, UP expects to get towards its share from various Central Generating Stations and Independent Power Producers (IPPs) 4850 MW upto 2012.Table-3.2 shows that out of this 4850 MW from the CGS and IPPs- 3289 MW is Thermal (3100 MW from IPP and 189 MW from CGS) and 1561 MW is Hydro (691 MW from IPP and 871 MW from CGS). In the State 89 MW additional capacity is expected through CoGen in Thermal and 30 MW from Hydro as 2x15 MW at Dhukawa by 2012, apart from capacity additions through UPRVUNL, which are being discussed later.
Table 3.2: UP Share from Various CGS, IPP And Other Projects (Other Than UPRVUNL) As Per UPPCL Year Name of Installed UP Share Plant Capacity CGS IPP State Total Sector Thermal Kahalgaon 2x500 124 0 0 St. II Ph. I Kahalgaon 1x500 65 0 0 2007-08 St. II Ph. II 233.5 Co Gen 0 0 44.5 Hydro Sewa St. II 3x40 24 0 0 24 Total 213 0 44.5 257.5 Thermal Co Gen 0 0 44.5 44.5 2008-09 Uri 4x60 48 0 0 Hydro 237 Koldam 4x200 189 0 0 Total 237 0 44.5 281.5 Thermal Reliance 9x420 0 1500 0 1500 Dadri Chamera 3x77 46 0 0 St. III 2009-10 Hydro Parbati 4x130 104 0 0 St. III Karchham4x250 0 400 0 550 WT Total 150 1900 0 2050 Thermal Anpara -C 2x500 0 1000 0 1600 Roza 2x300 0 600 0 Dhukawa 2x15 0 0 30

13

Hydro 2010-11

Kotlibhel St. IA Parbati St. II Pakaldul Srinagar Hydel

3x80 4x200 5x200 3x110

100 160 200 0 460 189 871 1060

0 0 0 290 1890 3100 690 3790

0 0 0 0 30 89 30 119 780 2380 3378 1591 4969

Total Thermal Hydro

Grand Total

Since a lot of the projects in the IPPs and CGS are Hydro in nature and work on Thermal projects from IPP (most of them being gas based, timely availability of which is still under question) have not yet commenced, there are possibilities that due to such slippages, Uttar Pradesh may not get the desired quota in time as expected. 3.2 ADDING NEW CAPACITIES As shown above Anpara C and Rosa Thermal Power Plants by IPPs are proposed with facilitation by the Nigam. UPRVUNL also has in various stages proposals to construct and commission following Thermal Power Stations on its own by 2012, which will give capacities in different year as shown in table-3.3 given below - Parichha 2X210 MW - Parichha 2x250 MW - Harduaganj 2X250 MW - Obra Extn. 2X500 MW - Panki 3x100 MW - Anpara D 2X500 MW - Dopaha 4X500 MW a green field project in Distt. Sonebhadra

Table 3.3: Year wise Capacity addition (in MW) and expected Available Energy (in MU) during 2007-12

Year

2006-07

2007-08

Name of Power Station and Expected Date of Commissioning Parichha 1x210 (30th June 2006) Parichha 1x210 (30th Sep 2006) Parichha 2x210 (Continued) Parichha 2x210 (Continued) Parichha 2x210 (Continued) Parichha 2x250 (U# 5 - 31.05.2009) (U# 6 - 30.09.2009) Harduaganj 2x250 (U# 8 - 31.07.2009) (U# 9 - 30.11.2009)

Capacity Addition (in MW) 210

Additional Capacity Available on Bus Bar (in MW) 355.49

Generated Energy (in MU) 1132.39 752.17

Available Energy for Sale (in MU) 1041.80 692.00 1733.80 2775.59

210 420 710.98

3016.94

2008-09

710.98

3016.94

2775.59

2009-10

3016.94

2775.59 2201.64

2393.09 500 1557.4 500 1000 1797.44 1653.64 6630.87

14

2010-11

Parichha 2x210 (Continued) Parichha 2x250 (Continued) Harduaganj 2x250 (Continued) Panki 3x100 MW (U# 5 - 31.07.2010) (U# 6 - 30.11.2010) (U# 7 - 31.03.2011) Anpara D 2x500 (U# 6 - 31.08.2010) (U# 7 - 31.12.2010) Parichha 2x210 (Continued) Parichha 2x250 (Continued) Harduaganj 2x250 (Continued) Obra Extension 2x500 (Continued) Panki 3x100 MW (Continued) Obra Extension 2x500 (U# 14 - 31.05.2011) (U# 15 - 31.10.2011) Dopaha 4x500 (Construction to start in XI plan but commissioning proposed in starting of XII plan)

3016.94 3591.60 3591.60

2775.59 3304.27 3304.27

300 2679.80 1000 1300

873.60

803.72

2988.90

2749.79 12937.64 2775.59 3304.27 3304.27 6608.54 1982.56

2011-12

3016.94 3591.60 3591.60 3504.12 7183.20 2154.96

1000

4495.10

4135.49 22110.72

3.3

RENOVATION AND REFURBISHMENT In order to increase efficiency of operation above the national level UPRVUNL proposes to undertake: Refurbishment of units completing 20 years or more life. Renovation and modernization of units completing more than 10 years of life. Formulation and implementation of capital and annual overhauling schedules strictly. 3.3.1The Nigam should also maximize the availability of units by adhering to standard/best practices of operation and maintenance. In line with above, the planned schedule of Refurbishment is as follows: 2 units of Obra 5 x50 MW 1.5 units of Obra 5x200 MW ( 1 nos. to be taken up on 1.7.07 to be ready by 31.12.07 and other to be taken up on 1.1.08 to be ready by 1.7.08) 2008-09 3 units of Obra 5x50 MW 2.5 units of Obra 5x200 MW ( 1 no. to be continued from 07-08, 1 no. to be taken up on 1.7.08 and to be ready by 1.1.09 and 2 nos. to be taken up on 1.1.09 to be ready by 1.7.09) 2009-10 1 no. unit of Obra 5x200 MW ( 2 nos. continued from 08 - 09) 3.3.2 The planned schedule of Renovation and Modernization plans is as follows: 2005-06 2006-07 Parichha TPS (2x110MW) Harduaganj unit 5 and 7 (60 + 110 MW) 2006-07 2007-08 -

15

2007-08 2008 - 09 2009-10 2010-11

Panki 2x110 MW Parichha TPS (2x110 MW) Obra unit No. 6 (100 MW) Anpara A - units 1-3 (3x210 MW) Harduaganj Unit 7 Anpara B TPS (1 unit) - 500 MW Anpara B TPS 1 unit 500 MW

The projected Availability Factor, PLF, Auxiliary Consumption, Oil Consumption, Coal Consumption for the period 2005 - 2012 are given in Table - 3.4 attached. This shows the projected improvement in existing units of UPRVUNL after carrying Renovation & Modernization and Refurbishment Works. The position of 2x210 MW units at Parichha, Parichha TPS (2x110 MW + 2x 210 MW) and over all UPRVUNL with the new 2x210 MW units is also shown in this table. 3.3.3 To ensure that the long-term sustainable levels of performance and to meet the demand for power, it is important to adhere to periodic maintenance schedules. The efficiency and availability of equipment is dependent on the strict adherence to annual and capital overhauling schedules. In the absence of such a systematic adherence to these schedules, there is a risk of the equipment consuming more coal, fuel oil, and a higher risk of forced outages, both increasing the cost of power generation and reducing the availability of equipment, and therefore having a cascading effect on the total power generated. The proposed overhauling schedules are given in Table -3.5 attached. 3.3.4 The projected year wise installed capacity of UPRVUNL and the energy available for sale are shown in table 3.6 belowTable 3.6: Year Wise Details Of Existing Generating Capacity And Proposed Capacity Addition In UPRVUNL During 2007-12 year 2007 2008 2009 2010 2011 2012

Existing Units3937

3937

3967

3967

3967

3967

1. Installed Capacity(in MW)

New Projects 420

TOTAL

4357

420 4357

420 4387

1420 5387

2720 6687

3720 7687

Existing Units 20022

20151

20609 21965

22892

22925

2. Available Energy for Sale (in MU)

New Projects

TOTAL
3.4

1734 21756

2776 22927

2776 6631 23385 28596

12938 35830

22111 45036

JOINT VENTURES AND SUBSIDIARIES: There shall still be a large gap when compared to the national per capita average consumption, even after construction of these projects. To bridge this gap gradually and for meeting the unrestricted demand in the State, it is proposed to build further new capacity, including entering into Joint Ventures with suitable partners (customers, fuel suppliers, equipment suppliers, generators, financers etc.) if technically and commercially feasible, and even consider coal on wire. Among other considerations,

16

the decision to adopt the JV route would be influenced by the value that the JV partner could add to the relationship e.g. tying with fuel suppliers could lead to fuel supply security. It would also be the endeavor of UPRVUNL to have a minimum equity stake of 26% in the JV. Subsidiaries can also be an effective vehicle for mitigating risks that are associated with working investments in new business areas. The subsidiaries could also provide a route to invest in alliances and joint venture for the new business without sacrificing benefits from the main/core business. 3.5 HUMAN RESOURCE MANAGEMENT: 3.5.1
ORGANISATION STRUCTURE:

The organization restructuring of the Nigam is required to be carried out on scientific lines, keeping functionalities in view and considering the structure prevailing in like functional successful organization, making space for professionalism and accountability. Suitable job profiling and delegation of powers shall be considered. 3.5.2
PROCESS STANDARDIZATION & SETTING-UP OF IT CELL:

In order to meet the challenges in power sector, it has become imperative to standardize the processes across the plans and integrate data across functions/departments at TPS and corporate levels. Setting up of a specialized IT cell to oversee installation of maintenance of hardware and software shall be considered. Implementation of ERP systems shall also be considered to have a an integrated point of view during decision making process. 3.5.3
SELECTION & RECRUITMENT:

In order to bring the manpower megawatt ratio within the limits specified in the 11th National Power Plan, gradual shift to recruitment of skilled manpower shall have to take place. Details of manpower requirement as per above plan are given at table 3.7 and an example for phased regular recruitment is given in table 3.8. As explained in chapter-2, to check the long-term effects of the skepticism amongst the Nigam personnel, resulting in manpower planning crisis both at executives and supervisory levels regular induction of talented young blood at basic entry level is essential. Induction as lateral entry at Intermediate levels is also required to make space for new and experienced blood.

3.5.4

PERFORMANCE APPRAISAL:

Making it more objective, related to the job profile and targets fixed against the same shall be considered. To promote group working 1800 system may be considered. 3.5.5
TRAINING & DEVELOPMENT:

Training & Development of employee to provide them exposure to recent developments in technology and management is felt as essential to meet the challenges in the present competitive environment. 3.5.6
INCENTIVE & REWARD SCHEME:

The existing incentive scheme shall be re-engineered to account for functional contribution of the employee and new non-cash reward scheme shall be considered for implementation in order to promote innovation and entrepreneurship. Job of designing these rewards scheme could be considered through experts in this field, in order to bring a change in the culture of the Nigam. 3.5.7
PROMOTION & PLACEMENT:

Promotion of efficient performing personnel and development of multidimensional skills shall be the objective. 3.5.8
ACCOUNTING SYSTEM:

To meet the requirements of the day and meet the challenges of the future, it is imperative to changeover to commercial accounting system and stream line the stock accounting procedures. 3.5.9
CONTRACT, MATERIAL & INVENTORY MANAGEMENT:

Re-engineering and stream lining the contractual processes/procedures to reduce the time and cost of procurement along with turn-round time for both services and materials. . Pre-auditing of contracts shall be considered to be to promote bold decision-making.

17

 3.5.

Proper quality assurance procedures shall be evolved and adhered to. Space shall be built in new procedures for long-term contract with OEM for spare supply and centralized procurement of critical equipment/spares. Codification of inventory shall be carried out for better inventory management. Procedures shall be considered for streamlining for reducing scrap and out of service spares to reduce the inventory levels and unlock the finances locked.

FUEL MANAGEMENT:

This is a very important input to the plant and its quality, quantity, cost effectiveness and consumption has a very vital impact on the health of the organization. All care on these points need to be taken. Steps for arranging security of coal during transit, commissioning and regular calibration of weighing bridges, on line computerization of fuel data, proper analysis of coal and ash chemistry etc. shall have to be taken care of. Proposals for installation of de-shaling plants and coal washeries at the mining end shall be considered or the reducing the ash and rock content from the sending end, reduce the cost of transportation and improve the plant performance 3.10 ENVIRONMENT AND SAFETY To meet the environment standards following steps shall be taken Up gradation, installation, commissioning of EST/EP at all units within a stipulated time frame. Achieve the pollution standards of GOUP/GOI where-ever possible. Ensuring disposal of ash to cement plants, highways, earth filling etc.

3.11 ENERGY CONSERVATION Energy conserved is extra energy generated, hence, money saved. It is, therefore, of utmost importance to work in this field. Suitable steps shall be taken forMinimizing auxiliary consumption through optimal operation of auxiliaries and improved maintenance. Establish the concept of Station Heat Rate in the organization and work towards it's optimization. Make Energy Audit a regular feature and establish the required surveillance, monitoring and consulting systems for it.

18

CHAPTER-4: Communication Strategy

With the vision to become the best state power utility in the country it is imperative to host a state of the art web site that contains details about the corporation, its facilities, plant performance and its people. For this we shall : develop a web site for the corporate as well as the plant. shall maintain constant communication with all the stake holders. Shall develop an intranet for facilitating date/information sharing and knowledge management. Shall have continuous media interaction for creating images of a positive, dynamic, lively and forward looking organization.

19

Chapter 5: The Way Ahead

In sum, the UPRVUNL will grow in two phases from now on: Phase 1: Efficiency Improvement In this Phase (from now onwards till 2008), the Organisation will get ready for impending changes in the environment. One significant change that will affect UPRVUNL significantly is the implementation of Availability Based Tariff (ABT). Therefore, UPRVUNL should begin with a thorough diagnosis of the factors impending their desired levels of performance on all technical parameters. The priority areas areimproving the availability of plants through periodic maintenance, enhancing the efficiency of plants through improving their Plant Load Factor, and controlling the cost and quality of inputs (Coal, equipment and spares). These improvements are possible by stream lining their critical business process - procurement of equipment and spares, inventory management, maintenance scheduling and human resources planning. The various steps that need to be taken to improve the efficiency with immediate effect are: Implementation of Enterprise Resource Planning (ERP) Systemso Process standardization across plants. o Data integration across functions/departments, across plants and corporate. Developing and strict adherence to maintenance scheduleso Refurbishment of life extension projects for equipment older than 20 years. o Renovation and modernization of equipment older than 10 years. o Periodic capital overhauling. o Strict adherence to annual maintenance schedules. Adoption of commercial accounting system. Streamlining of procurement processeso Reducing the time and cost of procurement through- Pre-qualification of vendors. - Financial delegation at the plant level for spares. - Long term contracts with equipment suppliers for spares supply. - Centralization of procurement for critical equipment/spare. Streamlining inventory management processeso Codification of all inventory and spares. Setting up of a specialized IT department in the Reforms Cell to oversee installation and maintenance of hardware and software and as a coordination for Re-engineering of systems. Human Resources Managemento Manpower planning- function and expertise wise. o Defining service conditions and norms. o Competence building- exposure to recent technology developments. o Developing a culture of high performance. o Developing employee incentive schemes.

Phase : 2 : Capacity Addition In this phase (2006-12) the focus of the Nigam would be to enhance capacity to meet the widening demand- supply gap. Some extension and green field projects are already in the pipeline, at various stages of approval / implementation. In order to implement these projects, Nigam has to ensure timely preparation and approval of proposals, feasibility analysis, approval from the government/regulatory authorities and timely mobilization of funds. Wherever possible, Joint Ventures with other state and central utilities and private sector may be explored. Vertical integration in the form of establishing coal washeries, management of coalmine etc., to gain more control over the supply, cost and quality of inputs may also have to be explored.

20

Nigam shall also be taking up the role of a facilitator, in line with the role taken up in the case of Anpara C, for installation of new plants by IPPs in the state. For any progressive organization, positive communication and image building is essential. Nigam should also focus its efforts on disseminating information to all its stakeholders through the effective use of Information Technology. With the intent of becoming a forward looking organization, Nigam should effectively use the internet and related technologies to project a positive image to all its stake holders.

21

TABLE 2.1 - AVAILABLILTY FACTOR (2001-2006) AVALABILITY FACTOR ANPARA TPS

MONTH 2001-2002 2002-2003 2003-2004 2004-20005 2005-2006

April May June July August September October November December January February March
MONTH

96.95 82.5 88.9 92.07 95.81 93.33 99.2 86.51 88.49 73.15 93.16 94.63 84.57 94.75 82.02 86.55 74.55 94.65 70.89 75.08 90.13 86.06 85.21 95.15 88.39 92.09 97.52 87.04 97.14 80.44 88.8 84.5 92.62 85.29 90.34 79.7 92.67 98.6 99.87 91.93 94.85 82.71 93.52 92.37 85.13 78.59 92.44 94.64 AVALABILITY FACTOR OBRA TPS
2001-2002

95.05 91.29 89.89 86.67 86.08 91.66 90.6 77.01 85.89 89.85 85.89 82.16

2002-2003 2003-2004 2004-20005 2005-2006

April May June July August September October November December January February March
MONTH

44.55 67.29 77.76 59.05 49.46 74.06 76.68 62.09 48.81 71.65 74.72 60.7 39.13 75.87 76.13 63.36 50.82 76.25 68.77 38.06 51.31 63.38 70.57 61.84 48.04 57.36 68.21 65.11 55.3 65.39 74.44 68.64 55.04 71.74 64.2 64.73 62.74 78.05 66.22 57.27 56.65 77.23 67.2 66.07 57.38 74.86 58.75 70.47 AVALABILITY FACTOR PANKI TPS
2001-2002

68.44 68.58 66.86 66.96 59.97 63.87 61.75 70.58 70.52 70.61 72.28 62.34

2002-2003 2003-2004 2004-20005 2005-2006

April May June July August September October November December January February March
MONTH

62.36 79.58 61.4 76.89 73.47 41.06 49.92 83.51 61.09 35.98 33.57 83.16 52.87 53.83 42.16 80.19 58.56 80.65 74.82 48.66 56.03 71.59 79.61 74.81 56.9 64.15 72.72 39.07 60.52 78.04 80.67 33.69 60.02 73.25 81.88 60.59 25.84 79.35 82.17 75 16.86 76.7 73.81 72.57 94.09 79.25 72.02 75.93 AVALABILITY FACTOR PARICHHA TPS
2001-2002

51.04 71.58 81.11 80.65 80.31 90 89.31 80.76 81.79 65.46 85.89 58.6

2002-2003 2003-2004 2004-20005 2005-2006

April May June July August September October November

33.09 73.55 55.96 65.93 81.28 91.43 75.04 72.08

78.82 74.8 88.96 84.61 79.5 78.96 87.63 60.56

73.06 35.95 37.92 43.02 35.33 40.28 43.75 36.81

86.81 82.39 68.61 84.01 84.34 85 80.98 79.17

66.81 77.49 59.51 72.72 86.06 56.04 39.18 45.69

22

December January February March

80.47 89.28 75.86 81.19

49.33 85.89 79.39 69.02

54.7 62.37 67.1 79.7

79.95 65.39 75.22 40

41.06 38.44 82.22 69.15

AVALABILITY FACTOR HARDUAGANJ TPS

MONTH 2001-2002 2002-2003 2003-2004 2004-20005 2005-2006

April May June July August September October November December January February March
MONTH

31.36 30.02 17.15 41.3 30.01 37.82 19.12 37.24 30.04 27.51 24.63 42.35 18.56 33.12 20.44 36.24 16.73 35.42 35.33 22.94 24.06 46.43 41.87 26.81 28.43 29.22 46.54 30.05 34.06 35.29 45.94 35.48 37.49 39.62 47.81 34.86 39.45 21.82 41.27 30.54 41 23.42 43.82 29.53 43.3 24.9 42.97 14.68 AVALABILITY FACTOR OF UNL
2001-2002 20022003

34.67 32.53 30.05 17.21 13.96 18.44 19.54 21.25 21.25 19.61 40.79 48.55

2003-2004 2004-20005 2005-2006

April May June July August September October November December January February March

65.59 69.76 64.72 58.46 59.64 67.43 65.05 71.98 70.77 72.2 69.7 71.21

71.47 76.62 66.81 78.77 80.46 72.6 71.27 69.29 73.14 81.75 74.44 71.57

75.31 76.6 72.99 69.28 64.94 72.78 77.26 75.96 74.09 78.63 76.34 73.29

73.78 72.36 74.92 72.63 55.31 74.48 70.17 70.5 68.71 70.71 74.45 73.82

75.13 75.28 73.4 70.92 68.51 71.54 69.44 67.1 70.57 71.08 75.63 68.95

23

TABLE2.2 : PLF OF EXISTING UNITS (2000-06)

Plant Load Factor Harduaganj Total (375) UPRVUNL 25.11 60.21 19.86 56.13 24.18 61.94 21.53 49.47 13.86 62 20.74 51.75 22.86 56.7 17.88 60.06 22.93 58.74 20.06 53.15 28.89 52.87 20.49 62.97 20.47 59.09 19.45 61.46 18.05 59.13 10.22 50.58 9.56 49.57 13.95 60.7 16.39 59.32 23.43 64.07 28.51 62.79 28.37 65.5 29.11 65.26 13.66 60.31 31.25 61.33 23.62 65.2 19.52 55.73 24.64 65.36 24.23 64.26 33.4 58.08 21.86 60.55 25.59 58.19 27.73 59.11 14.28 67.25 16.52 59.63 17.68 58.9 11.87 60.49 12.23 61.8 15.58 57.94 11.46 53.94 18.92 50.58 23.84 54.43 26.96 64.3

YEAR
2000 Apr 2000 May 2000 June 2000 July 2000 Aug 2000 Sep 2000 Oct 2000 Nov 2000 Dec 2001 Jan 2001 Feb 2001 March 2001 Apr 2001 May 2001 June 2001 July 2001 Aug 2001 Sep 2001 Oct 2001 Nov 2001 Dec 2002 Jan 2002 Feb 2002 March 2002 Apr 2002 May 2002 June 2002 July 2002 Aug 2002 Sep 2002 Oct 2002 Nov 2002 Dec 2003 Jan 2003 Feb 2003 March 2003 Apr 2003 May 2003 June 2003 July 2003 Aug 2003 Sep 2003 Oct

Anpara Obra 82.61 49.51 77.1 44.16 90.39 44.81 55.89 50.76 88.32 51.8 70.12 44.47 81.55 46.06 90.59 47.03 93.87 39.23 78.05 42.65 68.86 46.93 88.64 53.65 91.74 37.97 88.26 46.6 87.83 40.79 78.96 29.77 65.3 39.63 85.4 46 86.6 41.97 91.02 47.5 85.76 47.58 86.3 58.72 92.1 54.24 80.61 50.21 74.99 60.59 89.17 57.02 70.09 54.15 89.13 56.18 88.84 48.94 77.87 43.94 90.07 40.22 77.23 47.85 78.41 50.3 93.09 54.22 75.47 54.01 74.89 54.64 81.9 54.35 90.9 51.8 85.18 48.37 73.51 51.24 63.73 47.5 71.96 46.21 92.89 48.18

Panki Parichha 67.7 25.76 62.07 43.54 57.08 41.41 56.61 41.43 57.05 29.68 47.46 27.89 31.19 32.58 29.48 25.8 26.97 26.26 29.65 24.13 44.15 30.13 52.2 25.77 66.86 22.67 51.29 50.48 64.87 39.92 59.07 44.58 63.05 60.61 58.28 64.95 58.69 53.34 60.88 54.67 61.11 61.5 24.21 68.08 14.09 58.56 32.98 59.87 27.81 57.18 33.76 51.56 27.08 56.83 36.88 55.48 70.02 54.71 63.88 49.19 56.79 53.47 72.85 34.91 66.48 28.94 71.82 56.92 68.71 52.63 67.22 39.29 49.84 43.94 41.13 24.92 29.18 26.94 32.65 27.17 63.33 22.37 69.93 23.72 64.38 27.65

24

2003 Nov 2003 Dec 2004 Jan 2004 Feb 2004 March 2004 Apr 2004 May 2004 June 2004 July 2004 Aug 2004 Sep 2004 Oct 2004 Nov 2004 Dec 2005 Jan 2005 Feb 2005 March 2005 Apr 2005 May 2005 June 2005 July 2005 Aug 2005 Sep 2005 Oct 2005 Nov 2005 Dec 2006 Jan 2006 Feb 2006 March

85.55 86.55 96.6 88.76 86.8 84.37 74.92 83.53 75.17 75.08 79.97 81.31 76.61 72.86 87 88.89 88.39 89.14 87.19 82.61 71.2 76.88 79.73 83.81 71 82 87.04 82.68 78.36

54.24 48.74 50.27 50.63 40.36 38.58 41.48 39.41 41.94 38.06 41.06 46.27 48.81 45.7 42.21 49.59 54.69 51.06 48.34 44.54 39.49 34.5 37.68 38.26 44.95 47.23 48.32 50.21 45.47

72.17 72.05 72.79 63.61 62.2 64.69 64.31 64.31 60.47 56.08 56.47 33.61 31.6 53.72 69.09 62.28 64.05 42.84 58.98 56.51 50.96 53.82 57.95 59.55 49.21 49.43 44.61 57.7 41.29

23.11 33.39 45.18 50.26 58.28 57.05 56.67 48.17 56.02 54.84 51.81 57.25 50.25 50.46 42.01 48.31 29.43 46.21 51.91 34.14 40.03 49.4 36.28 27.92 33.3 26.49 23.82 56.92 50.18

28.46 31.55 27.12 29.02 28.1 25.6 22.48 23.13 20.16 22.94 14.68 16.56 20.27 21.48 17.76 15.35 10.01 23.38 19.81 16.75 9.23 7.94 10.1 10.63 11.93 12.46 11.66 23.26 33.28

63.59 62.85 67.88 64.72 60.4 58.55 55.35 57.75 55.15 53.65 55.85 57.59 56.42 55.03 59.63 62.9 63.09 63.15 62.18 57.78 50.55 51.64 53.71 55.31 52.28 57.43 59.46 62.04 58.16

25

TABLE2.3 : OIL CONSUMPTIOM OF EXISTING UNITS (2000-06) Oil Consumption (KL/MU) Harduaganj Total Anpara Obra Panki Parichha (375) UPRVUNL 0.98 5.01 2.08 19.7 7.94 3 1.06 7.39 3.58 7.27 8.9 3.57 0.68 6.1 6.58 6.52 8.23 2.92 1.44 4.75 10.29 15.81 8.96 4.23 0.76 4.45 8.41 7.16 10.42 2.66 0.71 6.88 8.15 11.23 11.29 3.76 1.06 3.49 5.48 5.18 6.11 2.25 0.71 2.66 5 8.49 8.55 1.81 0.42 4.75 6.03 6.49 5.35 1.96 0.94 2.97 19.06 4.68 5.27 2.34 0.97 3.48 12.02 3.08 4.09 2.52 0.42 2.67 5.97 4.36 8.15 1.71 0.5 5.77 1.38 24.62 9.27 2.62 0.4 4.71 3.48 8.59 8.92 2.38 0.41 5.2 1.2 11.04 14.47 2.49 0.85 7.87 2.24 11.66 5.75 3.1 1.34 5.07 2.59 6.99 6.93 3.01 0.5 2.57 3.8 6.97 3.45 1.71 0.77 4.61 3.2 7.95 8.64 2.47 0.35 3.54 4.69 5.14 9.64 2 0.62 5.14 6.81 5.38 3.66 2.6 0.44 2.89 14.41 3.83 4.48 1.89 0.26 2 30.78 5.46 4.88 1.61 0.39 3.97 5.18 4.17 3.51 2 0.97 2.84 5.18 5.28 4.92 2.17 0.6 3.66 3.39 15.24 10 2.64 0.58 2.87 12.53 9.69 6.93 2.45 0.37 2.03 10.91 13.75 3.38 1.97 0.25 2.27 1.14 9.91 7 2.14 0.98 4.04 3.07 10 5.27 2.62 0.51 4.9 3.09 15.8 3.9 2.59 0.45 4.1 0.92 23.06 8.18 2.68 0.65 3.49 2.44 20.08 5.65 2.41 0.33 2.17 1.72 9.35 4.67 1.47 0.89 2.81 1.97 7.6 2.02 1.96 0.69 2.86 2.33 9.81 3.22 1.95 0.92 2.39 3.73 10.83 2.71 1.97 0.31 2.53 10.38 11.23 8.44 1.76 0.74 4.5 5.08 6.63 5.42 2.29 0.46 2.14 19.19 9.31 22.92 2.36 0.64 3.09 2.69 11.99 21.79 2.67 2.01 5.55 1.55 27.81 12.54 4.16 0.47 2.9 1.91 7.25 9.29 1.76 0.54 2.4 1.22 10.11 10.8 1.8 0.56 3.13 2.11 18.7 6.9 2.24

Year
2000 Apr 2000 May 2000 June 2000 July 2000 Aug 2000 Sep 2000 Oct 2000 Nov 2000 Dec 2001 Jan 2001 Feb 2001 March 2001 Apr 2001 May 2001 June 2001 July 2001 Aug 2001 Sep 2001 Oct 2001 Nov 2001 Dec 2002 Jan 2002 Feb 2002 March 2002 Apr 2002 May 2002 June 2002 July 2002 Aug 2002 Sep 2002 Oct 2002 Nov 2002 Dec 2003 Jan 2003 Feb 2003 March 2003 Apr 2003 May 2003 June 2003 July 2003 Aug 2003 Sep 2003 Oct 2003 Nov 2003 Dec

26

2004 Jan 2004 Feb 2004 March 2004 Apr 2004 May 2004 June 2004 July 2004 Aug 2004 Sep 2004 Oct 2004 Nov 2004 Dec 2005 Jan 2005 Feb 2005 March 2005 Apr 2005 May 2005 June 2005 July 2005 Aug 2005 Sep 2005 Oct 2005 Nov 2005 Dec 2006 Jan 2006 Feb 2006 March

0.14 0.25 0.47 0.52 0.85 0.53 0.76 1.62 1.14 0.2 0.71 1.16 0.35 0.45 0.5 0.45 0.43 0.65 0.84 1.01 0.54 0.73 0.3 0.69 0.15 0.28 0.76

2.94 1.75 2.97 6.17 5.26 7 3.89 5.47 4.94 2.98 3.5 3.9 2.74 3.7 1.99 2.58 2.59 3.57 6.73 10.5 4.6 6.28 3.66 3.2 2.34 3.53 2.95

1.13 2.52 2.27 1.71 3.01 1.98 2.8 4.33 4.76 4.84 2.39 7.89 1.95 4.94 3.38 4.96 3.97 6.37 6.68 3.25 3.93 2.73 8.94 9.04 3.34 4.48 1.8

7.65 6.58 4.21 3.97 3.28 4.56 4.61 4.36 4.53 2.01 3.61 4.41 3.74 3.67 5.02 7.76 6.67 19.01 16.38 6.39 6.73 9.36 3.05 14.25 7.39 5.31 5.88

4.97 4.36 6.23 9.38 7.84 13.61 7.13 9.09 11.07 13.12 9.28 10.83 13.97 19.03 21.45 7.02 7.71 19.52 30.57 22.88 15.3 11.6 9.01 13.12 17.46 10.52 4.51

1.43 1.26 1.64 2.53 2.62 2.94 2.2 3.24 2.79 1.63 2.09 2.88 1.6 2.21 1.57 1.79 1.75 2.93 4.09 4.11 2.3 2.72 2.11 2.46 1.43 2.11 1.9

27

Particulars

Table 2.4: UPRVUNL - INCOME, EXPENDITURE, PROFIT AND LOSS DATA Rs. in Crores 2004-05 2003-04 2002-03 2001-02 2000-01 Audited 2809.40 1.13 0.79 30.09 15.14 2856.54 2874.66 1.28 1.93 30.08 9.43 2917.38 2826.04 0.42 7.95 0.00 5.22 2839.63 2666.59 0.57 0.64 0.00 4.06 2671.86 2353.44 2.18 0.00 4.55 2360.17

INCOME Revenue from Sale of Power Revenue from Subsidies & Grants Amortisation of Capital Grant Govt.Grant towards GPF Other Income Total Income (A) EXPENDITURE Cost of Generation of Power Repairs & Maintenance Employees Cost Administration & General Expenses Provisions Other Expenditure Operating Expenditure Operational Profit (C), (A-B) Depreciation Interest Total Depreciation & Interest (D) Net Profit/Net Loss) (C-D) Less prior period Expenditure Total Net Profit/(Total Net Loss) (F) Less Accumulated loss upto previous year Total Accumulated loss

2011.32 172.22 245.57 39.05 4.38 0.00 2472.54 384.01 197.32 377.16 574.49 (190.48) -8.05 (182.43) 1057.87 (1,240.30)

1812.49 158.22 254.89 34.66 0.00 2260.26 657.12 503.79 342.94 846.73 (189.61) -4.74 (184.87) 873.00 (1,057.87)

1664.19 167.50 248.77 35.96 81.94 2198.36 641.27 500.52 343.78 844.30 (203.03) -1.39 (201.64) 671.36 (873.00)

1625.16 166.08 242.16 34.05 0.00 2067.45 604.41 496.68 323.29 819.97 (215.56) 16.42 (231.98) 439.38 (671.36)

1393.67 164.45 232.70 27.25 0.01 1818.08 542.09 496.65 303.92 800.57 (258.48) 10.52 (269.00) 170.38 (439.38)

Table 2.5: UPRVUNL - FINANCIAL STRUCTURE (Rs. in Crores) Share Capital 2132.92 1797.07 1764.24 1764.24 Share Application Money 1.00 335.85 0.00 32.82 Reserve and Surplus 19.82 23.33 16.00 23.95 Net Worth 2153.73 2156.25 1813.07 1821.01 Secured Loan (LIC) 2316.84 1996.45 1761.78 1557.80 Unsecured Loan 1790.77 1181.50 957.66 958.84 DEBT 4107.61 3177.95 2719.44 2516.64 Total (A) 6261.35 5334.20 4532.51 4337.65 Gross Fixed Assets 6706.48 6686.77 6661.71 6616.84 Less Depreciation 4366.94 4169.61 3665.82 31.65.30 Net Fixed Assets Block (B) 2339.54 2517.16 2995.89 3451.54 Capital Work-in-Progress (C) 1262.84 613.47 231.14 70.31 CURRENT ASSETS Inventories 669.63 646.46 621.89 597.90 Sundry Debtors 2028.62 1736.99 1242.9 803.88 Cash and Bank Balances (including FDR) 81.61 80.26 96.18 66.40 Loans & Advances 451.02 411.1 413.04 422.04 Inter Unit Transfers 0.00 -16.19 -22.99 1.14 Total Current Assets (D) 3230.89 2858.62 2351.02 1891.36 Less Current Liabilities 1812.23 1712.92 1918.54 1746.92 Net Current Assets (E) 1418.66 1145.70 432.48 144.44 Accumulated Loss (F) 1240.30 1057.87 873.00 671.36 Total (B+C+E+F) 6261.35 5334.20 4532.51 4337.65

1764.24 0.01 0.00 1764.25 1382.92 1127.14 2510.06 4274.31 6546.35 2668.65 3877.70 78.12 561.20 468.63 53.72 385.17 20.22 1488.94 1609.83 -120.89 439.38 4274.31

28

TABLE 2.6: UPRVUNL - VARIOUS FINANCIAL LEVERAGES ANDRATIOS Rs. in Crores 2000-01

Particulars RATIO Expenditure to Income Operational Profit to Income Employees Cost to Income Repair & Maintenance to Income Cost of Generation of Power to Income Administrative Expenditure to Income Current Assets to Current Liabilities Debt Equity Ratio Debtor's turnover Ratio Net Fixed Assets to Net Worth Revenue to Net Fixed Assets

2004-05 Audited 86.56% 13.44% 8.60% 6.03% 70.41% 1.37% 178.28% 1.92 264 days 108.63% 120.08%

2003-04

2002-04

2001-02

77.48% 22.52% 8.74% 5.42% 62.13% 1.19% 166.89% 1.49 221 days 116.74% 114.20%

77.42% 22.58% 8.76% 5.90% 58.61% 1.27% 122.54% 1.51 162 days 166.71% 94.33%

77.38% 22.62% 9.07% 6.21% 60.83% 1.27% 108.33% 1.40 110 days 192.07% 77.26%

77.03% 22.97% 9.85% 6.97% 59.05% 1.15% 92.49% 1.42 73 days 219.79% 60.69%

Table 2.7: UPRVUNL - COMMERCIAL DATA Receivables Cumulative (Rs in Crores)

769.25 1221.87 1750.43 2063.63 2528.18

Year

Units Sold in MU

Total Annual Bill

(Rs in Crores)

Amount Received (Rs in Crores)

2316.01 2369.92 2357.95 2499.79 2596.41

During the Year (Rs in Crores)

339.66 452.62 528.57 313.20 464.55

As %of Annual Bill

2000-01 2002-03 2003-04 2004-05 2005-06

18030.50 18470.04 18229.31 17272.78 17017.12

2655.67 2822.54 2886.52 2818.99 3060.96

28.97 43.29 60.64 73.36 82.59

29

2005-06 11890 GEN(MU) 93.91 AF(%) 83.27 PLF(%) 0.72 COAL CONS(KG/UNIT)) 0.65 FUEL OIL CONS(KL/MU) 8.5 AUX CONS(%)
SHR MANPOWER/MW

2006-07 12000 91.04 84.04 0.71 0.6 8.5

TABLE 3.4: UPRVUNL - EXISTING PLANT DATA PROJECTION FOR 2005-20012 ANPARA OBRA 2007-08 2008-09 2009-10 2010-11 2011-12 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 12135 12140 12145 12150 12155 5712.05 7147.157 6686 7553 8691 9483 9565 93.43 91.93 92.48 91.88 93.19 84.05 75.24 77.85 71.15 83.86 92.28 91.75 84.98 85.02 85.06 85.09 85.13 45.22 56.58 49.82 56.28 64.76 70.66 71.27 0.7 0.69 0.69 0.68 0.68 0.867 0.85 0.84 0.83 0.8 0.8 0.8 0.6 0.55 0.5 0.53 0.52 3.74 3.29 2.8 2.71 2.18 1.93 1.79 8.5 8.4 8.3 8.2 8.1 11.98 11.56 11.79 10.86 10.51 9.83 9.95 3.02

1.15 PANKI 2006-07 2007-08 2008-09 2009-10 1012 1104 1104 1104 91.64 91.5 87.39 87.39 55 60 60 60 0.88 0.88 0.88 0.88 4.8 4.5 4.5 4 13.25 13 13 13

2005-06 947 95.75 AF(%) 51.47 PLF(%) 0.89 COAL CONS(KG/UNIT)) 5 FUEL OIL CONS(KL/MU) 13.5 AUX CONS(%)
GEN(MU) SHR MANPOWER/MW

2010-11 2011-12 2005-06 2006-07 1140 1196 542 915 92.05 91.5 62.87 67.42 62 65 16.5 27.85 0.88 0.88 1 0.98 4 4 13 10.5 13 12.5 17 13 4.61

HARDUAGANJ 2007-08 2008-09 2009-10 2010-11 2011-12 1160 1187 1078 1160 1040 65.93 68.27 62.53 67.14 65.93 35.31 36.13 32.82 35.31 31.66 0.97 0.97 0.96 0.96 0.95 10 9.5 9 8.5 9 12.5 12 12 11.5 11

5.77 PARICHHA (2x110 MW) 2006-07 2007-08 2008-09 2009-10 1200 1350 864 1344 92.05 91.5 66.71 87.53 62.26 70.04 44.83 69.73 0.85 0.85 0.85 0.85 5 5 5 5 13 13 13 13

2005-06 803 82.46 AF(%) 41.66 PLF(%) 0.93 COAL CONS(KG/UNIT)) 7.78 FUEL OIL CONS(KL/MU) 15.78 AUX CONS(%)
GEN(MU) SHR MANPOWER/MW

PARICHHA (2X210MW) 2010-11 2011-12 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 1344 1344 NA 1884.56 3016.9 3016.94 3016.94 3016.94 3016.94 91.78 91.78 NA 96.37 92 92 92 92 92 69.73 69.73 NA 82 82 82 82 82 82 0.85 0.85 NA 0.8 0.8 0.8 0.8 0.8 0.8 5 5 NA 3 3 3 3 3 3 13 13 NA 9 9 9 9 9 9

2.59

UNL(WITH 2X110 MW PARICHHA ONLY )

30

2005-06 803 82.46 AF(%) 41.66 PLF(%) 0.93 COAL CONS(KG/UNIT)) 7.78 FUEL OIL CONS(KL/MU) 15.78 AUX CONS(%)
GEN(MU) SHR MANPOWER/MW

PARICHHA ( 2x110+2X210 MW) 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 3084.5 4366.94 3880.94 4360.94 4360.9 4360.94 19894.1 22274.54 22435 22848 24362 25277 25304 96.37 91.5 83.07 90.23 91.69 91.69 86.69 85.98 84.66 80.03 85.77 89.7 89.88 73 77.89 69.22 77.79 77.79 77.79 58.58 64.58 65.05 65.74 70.1 72.73 72.81 0.82 0.82 0.81 0.82 0.82 0.82 0.787 0.781 0.774 0.766 0.759 0.756 0.755 3.778 3.618 3.445 3.616 3.616 3.616 2.368 2.337 2.198 2.088 1.882 1.804 1.751 10.55 10.24 9.89 10.23 10.23 10.23 10.26 10.12 10.18 9.79 10.13 9.43 9.38 2.64

UNL(WITH 2X210 MW PARICHHA) 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 19894.05 24159.1 25451.9 25864.9 27378.94 28294 28320.9 GEN(MU) 86.69 86.85 85.32 81.14 86.24 89.82 89.98 AF(%) 58.58 65.66 66.68 67.3 71.24 73.62 73.69 PLF(%) 0.787 0.782 0.777 0.766 0.763 0.76 0.76 COAL CONS(KG/UNIT)) 2.368 2.45 2.29 2.19 2 1.94 1.88 FUEL OIL CONS(KL/MU) 10.26 10.03 10.04 9.7 9.64 9.37 9.34 AUX CONS(%)
SHR MANPOWER/MW

2.64

31

TABLE 3.7A: MANPOWER TO MW RATIO AS PER 10th PLAN

DETAILS MAN/MW NATIONAL NORMS ANPARA 1630 MW OBRA 1532 MW PARICHHA 640 MW PANKI 221 MW HARDUAGANJ 275 MW TOTAL 4287 MW MAPOWER TO MW RATIO FOR THE NIGAM

Below 500 MW Technical NonTechnical Total Below 500 MW Technical NonTechnical Total Grand Total

1.15 0.61

725 343 1068

1762 935 2697 0 0 0 2697

736 390 1126 0 0 0 1126

242 128 370 0 0 0 370

316 168 484 0 0 0 484

3781 1964 5745 820 300 1120

Tech - 4601 Non-Tech - 2264 Total - 6865

0.82 0.30

820 300 1120 2188

1.60

TABLE 3.7 B: MANPOWER TO MW RATIO AS PER 11th PLAN

DETAILS MAN/MW NATIONAL NORMS ANPARA 1630 MW OBRA 1532 MW PARICHHA 640 MW PANKI 221 MW HARDUAGANJ 275 MW TOTAL 4287 MW MAPOWER TO MW RATIO FOR THE NIGAM

Below 500 MW Technical NonTechnical Total Below 500 MW Technical NonTechnical Total Grand Total

1.02 0.55

643 347 990

1163 627 1790 0 0 1070 3476

736 390 1126 0 0 0 1790

520 281 801 0 0 0 801

791 426 1217 0 0 0 1217

4680 2524 7204 2340 870 3210

Tech - 7020 Non-Tech - 3394 Total - 10414

0.78 0.29

1560 580 2140 3130

1.60

32

Table 3.8: Projected Estimated Yearly In take And Retirement of Personal vs. Installed Capacity
Year Installed Capacity Existing Strength Assumed Retirement in in % nos. Recruitment in Various Cadres at Induction Level AE JE Technician Ministerial Acctts. HR Total No. of Peronnel at the end of the year 9915 9770 9750 9700 9630 9710 9700 A total of 4940 recruited during the period Manpower / Megawatt ratio

2006 2007 2008 2009 2010 2011 2012

3877 4357 4357 4387 5387 6687 7687

10225

5 6 7 8 9 10 11

510 595 680 780 870 960 1070 5465

0 150 150 150 150 150 200 950

200 100 100 100 100 150 100 850

0 200 200 250 300 400 400 1750

0 0 150 150 150 200 200 850

0 0 30 40 50 70 80 270

0 0 30 40 50 70 80 270

2.56 2.24 2.24 2.21 1.79 1.45 1.26

33