46704946 a Project to Study Operation of NTPC Shimadri Abinash Sahu

7/28/2019 46704946 a Project to Study Operation of NTPC Shimadri Abinash Sahu

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A PROJECT TO STUDY

OPERATION OF NTPC SIMHADRI

SUBMITTED BY

ABINASH SAHU

ROLL NO. - 10CM60804

III SEMESTER, MBA (2009-2011)

BANGALORE SCHOOL OF BUSINESS

BANGALORE


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III SEM MBA (2009-11), BANGALORE SCHOOL OF BUSINESS, BANGALORE (MS UNIVERSITY)

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IN X

S.NO. CONTENTS PAGE NO.

1.

2.

2.1.

2.2.

2.3.

2.4.

2.5.2.6.

2.7.

2.8.

2.9

3.

3.1.

3.2.

3.3.

3.4.

3.5.4.

4.1.

4.2.

4.3.

5.

6.

POWER SECTOR IN INDIA

INTRODUCTION TO NTPC

MAJOR ACHIEVEMENTS OF NTPC

HISTORY OF NTPC

VISION AND MISSION OF NTPC

NTPC: CULTURE

Simhadri NTPCNTPC: CORE VALUES &OBJECTIVES

SWOT ANALYSIS

DIVERSIFICATION

SUBSIDIARIES

BUSINESS MODEL OF NTPC

OPERATIONS OF THE BUSINESS

OPERATING STRATEGIES OF NTPC

ORGANIZATION STRUCTURE

CORPORATE OBJECTIVE

SUPPLY CHAIN MANAGEMENT

ISSUES AND CHALLENGES

HUMAN RESOURCES

FUTURE CAPACITY ADDITIONS

CHALLENGES WITH COAL RESOURCES

CONCLUSIONS/RECOMMENDATIONS

BIBLIOGRAPHY

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1. POWER SECTOR IN INDIAPower development in India is the key to economic development. Thepower sector

has beenreceiving adequatepriorityever sincetheprocess ofplanned development in

1950. Hydro power and coal based thermal power have been the main sources of

generating electricity. Nuclear power development is at slower pace, which wasintroduced in late 60s . The conceptofoperatingpower systems on a regional basis

crossing theplace, thepower supply industryhave beenunder constantpressure to

bridgethegap between supplyand demand.

Since Independence in 1947, IndianPower sectorprogress has beenrapid. Frommere

1713 MWs ofInstalled capacity in 1950 thecapacity attheend ofMarch 2007 roseto

124569 excludingcapacityofrenewableenergy. Totalgeneration in April2006- March

2007 was 659419 GWs in theutility sector. Thepercapita consumptionofelectricity

increased from 15 KWHs in 1950 to 619 in 2006-07.

Decades of economic planning in India following independence placed significant

emphasis onthe developmentofthepower sector. Electricitygenerationcapacitywith

utilities in India had grownfrom 1713 MW in December 1950 toover 124,287 MW by

March 2006. However,percapita electricityconsumptionremains muchlowerthanthe

world average and even lower than some of the developing Asian economies.

Investment inthe sectorhas not been ableto improve access and keeppacewiththe

countrys growing demand forelectricity.

India has thefifthlargestgenerationcapacity intheworld with an installed capacityof

152 GW as on 30 September 2009, which is about 4 percent of global power

generation. Thetopfourcountries,viz., US, Japan, China and Russia togetherconsume

about 49 percent of the total power generated globally. The average per capita

consumption of electricity in India is estimated to be 704 kWh during 2008-09.However, this is fairly low when compared to that of some of the developed and

emergingnations such US (~15,000 kWh) and China (~1,800 kWh). Theworld average

stands at 2,300 kWh. The Indiangovernmenthas set ambitious goals inthe 11thplan

forpower sectorowingtowhichthepower sector is poised for significantexpansion. In

ordertoprovide availabilityofover 1000 units ofpercapita electricity byyear 2012, it

has been estimated thatneed-based capacity addition of more than 100,000 MW

would be required. This has resulted inmassive additionplans beingproposed inthe

sub-sectors ofGeneration Transmission and Distribution.

India is world's 6th largest energy consumer, accounting for3.4% of global energy

consumption. Due to Indias economic rise, the demand forenergyhas grown at an

averageof3.6% per annumoverthepast 30 years. In March 2009,the installed powergeneration capacity of India stood at 147,000MW while the per capita power

consumption stood at 612kWh. The country's annual power production increased

from about 190 billion kWh in 1986 tomorethan 680 billionkWh in 2006. The Indian

governmenthas set an ambitious targetto add approximately 78,000 MW ofinstalled

generation capacity by 2012.The total demand for electricity in India is expected to

cross 950,000 MW by 2030.


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About 75% oftheelectricityconsumed in India is generated bythermalpowerplants,

21% byhydroelectricpowerplants and 4% bynuclearpowerplants. Morethan 50% of

India's commercialenergy demand is metthroughthecountry's vastcoalreserves. The

countryhas also invested heavily inrecentyears onrenewable sources ofenergy such

as wind energy. As of2008, India's installed wind powergenerationcapacity stood at

9,655 MW. Additionally, India has committed massive amount of funds for the

constructionofvarious nuclearreactors whichwould generate atleast 30,000 MW. In

July 2009, India unveiled a $19 billionplan toproduce 20,000 MW ofsolarpower by

2020.

The Power sector in India is predominantly controlled by theGovernment of

India's public sector undertakings (PSUs). Major PSUs involved in the generation of

electricity are National Thermal Power Corporation(NTPC), National Hydroelectric

Power Corporation (NHPC) and Nuclear Power Corporation of India(NPCI). Besides

PSUs, several state-level corporations, such as Maharashtra State Electricity

Board (MSEB), are also involved in the generation and intra-state distribution of

electricity. ThePower Grid Corporation of India is responsible for the inter-statetransmissionofelectricity and the developmentofnationalgrid.

The Ministry of Power is the apex body responsible for the generation and

developmentofpower in India. This ministry started functioning independentlyfrom 2

July, 1992; earlier, itwas known as the MinistryofEnergy. The Union MinisterofPower

atpresent is Sushilkumar Shinde,whotook chargeoftheministryonthe 28thofMay,

2009.


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2. INTRODUCTION TO NTPCNTPC Limited is thelargestthermalpowergeneratingcompanyofIndia. A public sector

companywhollyowned by GovernmentofIndia, itwas incorporated intheyear 1975

to acceleratepower development inthecountry. Within a spanof30 years, NTPC has

emerged as a trulynationalpowercompany,withpowergeneratingfacilities in allthe

majorregions ofthecountry.

Recognizing its excellentpastperformance and its vastpotential,the Govt.ofthe India

has identified NTPC as oneof the 'Navratnas'- a potential global giant and also it is

going to be identified as oneof the Ma haratna- giant among the 'Navratnas'. NTPC

Limited is the largest thermal power generating company of India. A public sector

company, itwas incorporated intheyear 1975 to acceleratepower development inthe

country as a whollyowned companyofthe GovernmentofIndia.

Atpresent, GovernmentofIndia holds 89.5% ofthetotalequity shares ofthecompany

and the balance 10.5% is held by FIIs, Domestic Banks,Public and others. Within aspanof 30 years, NTPC has emerged as a truly national power company, with power

generatingfacilities in allthemajorregions ofthecountry.

Based on 1998 data,carried out by Data monitor UK, NTPC is the 6thlargest interms of

thermalpowergeneration and the second mostefficient interms ofcapacityutilization

amongstthethermalutilities intheworld.

The Group's principal activity is to generate and sellpower to stateutilities. It also

provides consultancy to power utilities and maintains power stations. The Group

operates in two segments, namely, Power Generation and Others. The Power

generation segment includes generation and saleofbulk powerto SEBs/Stateutilities.Other business includes providing consultancy,projectmanagement and supervision,

oil and gas exploration and coalmining.

In the Forbes list ofW orld's 2000 largest companies, 2008 , NTPC occupies 317th

place. With a currentgeneratingcapacityof30,144 MW, NTPC has embarked onplans

to become a 75,000 MW company by 2017.

Presently, Governmentof India holds 89.5% equity in the company and the balance

10.5% is held by FIIs, Domestic Banks,Public and others.

As on date, NTPC's total installed capacity is 27, 904 MW. NTPC's coal based power

stations are at: Singrauli (Uttar Pradesh), Korba (Chattisgarh), Ramagundam (Andhra

Pradesh), Farakka (West Bengal), Vindhyachal (Madhya Pradesh), Rihand (UttarPradesh), Kahalgaon (Bihar), NTCPP (UttarPradesh), Talcher (Orissa), Unchahar (Uttar

Pradesh), Simhadri (Andhra Pradesh), Tanda (Uttar Pradesh), Badarpur (Delhi), and

Sipat (Chattisgarh). NTPC's Gas/Liquid based power stations are located at: Anta

(Rajasthan), Auraiya (Uttar Pradesh), Kawas (Gujarat), Dadri (Uttar Pradesh), Jhanor-

Gandhar (Gujarat), Rajiv Gandhi CCPP Kayamkulam (Kerala), and Faridabad (Haryana).

NTPC's Power Plants with Joint Ventures are located at Durgapur (West Bengal),

Rourkela (Orissa), Bhilai (Chhattisgarh), and RGPPL (Maharastra).


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Indias largestpowercompany, NTPC was setup in 1975 to acceleratepower development

in India. NTPC is emerging as a diversified powermajorwithpresence in theentirevalue

chain of the power generation business. Apart from power generation, which is the

mainstayofthecompany, NTPC has alreadyventured intoconsultancy,powertrading, ash

utilisation and coalmining. NTPC ranked 317th inthe2009 , Forbes Global 2000 rankingof

the Worlds bi ggest companies.The total installed capacityof the company is 31,134 MW

(including JVs)with 15 coal based and 7 gas based stations, located across thecountry. In

additionunder JVs, 3 stations arecoal based & another stationuses naptha/LNG as fuel. By

2017, thepower generationportfolio is expected tohave a diversified fuelmixwith coal

based capacityof around 53000 MW, 10000 MW through gas, 9000 MW through Hydro

generation, about 2000 MW fromnuclear sources and around 1000 MW from Renewable

Energy Sources (RES). NTPC has adopted a multi-pronged growth strategywhich includes

capacity additionthroughgreenfield projects,expansionofexisting stations, jointventures,

subsidiaries and takeoverofstations.

NTPC has been operating its plants at high efficiency levels. Although the company has

18.79% ofthetotalnationalcapacity itcontributes 28.60% oftotalpowergeneration dueto

its focus onhighefficiency.

In October 2004, NTPC launched its InitialPublic Offering (IPO)consistingof5.25% as fresh

issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed

company in November 2004 withthegovernmentholding 89.5% oftheequity sharecapital.

Therest is held by Institutional Investors and thePublic. The issuewas a resounding success.

NTPC is among the largest five companies in India in terms of market capitalization.

At NTPC people beforePlant Load Factor is themantra thatguides all HR related policies.

NTPC has been awarded No.1, Best Workplace in India among largeorganizations and the

best PSU for the year 2009, by the Great Places to Work Institute, India Chapter in

collaborationwith The Economic Times.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture.Through its expansive CSR initiatives NTPC strives to develop mutual trust with the

communities that surround its power stations.

Rightfrom socialto developmentalwork ofthecommunity and welfare based dependence

to creating greater self reliance; the constant Endeavour is to institutionalize social

responsibilityonvarious levels.

2.1 MAJOR ACHIEVEMENTS OF NTPC

y LargestthermalpowergeneratingcompanyofIndia.y Sixthlargestthermalpowergenerator intheworld.y Second mostefficientutility interms ofcapacityutilization.y OneoftheninePSUs to be awarded the status ofNavratna.y Provides power atthecheapest averagetariffinthecountry.2.2 HISTORY OF NTPC1975

Incorporated in November1977

TPC acquired thefirstpatchofland at Sanghrauli


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Thefirst batchofexecutivetrainees joined thecompany1978

Takeoverofmanagementofthe Badarpurproject. Constructionofthefirsttransmissionnetwork Sanghrauli- Korba- Kanpurof400 KV

systems started.1982

Power Management Institute, Delhi, a centreforeducationwas established1983

Intheveryfirstyearofcommercialoperation, NTPC earned a profitofRs 4.51 croreinthefinancialyear 1982-83

1985 This yearmarked thecompletionofdecade (1975-1985)ofNTPCs existence. NTPC

achieved a generating capacityof220 MW by commissioning 11 units of200 MW

each at its various projects incountry.

The government of India approved the setting of three gas based combine cycleprojects by NTPC in Kawat ingujrat, Auraiya in UttarPradesh and Anta in Rajasthan.Fortheseprojects,the World Bank agreed toprovide US$ 485 million,whichwas the

largest singleloan inthehistoryofbank.

1987

Crossed the 5000 MW capacitymark.1989

Consultancy divisionlaunched1990

Total installed capacitycrossed 10000MW1992

Acquisition by the company of Feroz Gandhi Unchahar Thermal Power Station(2x210 MW)from UttarPradesh Rajya Vidyut Utpadan Nigam OfUttarPradesh

1994

Crossed 15000 MW ofinstalled capacity.1995

NTPC celebrated 20 yrs ofits existence. A newlogowas adopted. NTPC took over the 460 MW Talcher Thermal power Station from Orrisa State

Electricity Board.

1997

Achieved 100 millionunits generation inoneyear.1998

Commissioned thefirst Naphtha based plant at Kayamkulamwith a capacityof350MW.

2000

Commenced construction of a first hydro- electricity power project of 800 MWcapacity in HimachalPradesh


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2002

Threewhollyowned subsidiaries viz. NTPC Electric Supply Company Limited, NTPCHydro Limited, NTPC Vidyut Vyapar Nigam Limited incorporated.

2004 NTPC became a listed company. NTPC made its debut issue of euro bonds amounting to USD 200 million in

internationalmarket.

2005

The company rechristened as NTPC Limited in line with its changing businessportfolio and transforms itselffrom a thermalpowerutilityto an integrated power

utility.

2008

National Thermal Power Corporation is the largest power generation company inIndia. Forbes Global 2000 for 2008 ranked it 411th intheworld.

2.3 VISION AND MISSION OF NTPC

VISION: To be one of the worlds largest and best power utilities, powering Indias

growth.

To realize this vision, NTPC has drawnup a detailed CorporatePlan for theperiod 1997-

2012 which represents the company's collectiveoptimism and enthusiasm, inspired by a

glorious past, a vibrantpresent and a brilliantfuture. ThePlanhas beenprepared in-house

inconsultationthecommitted,competent and confidentmembers ofthe NTPC family. The

road map that has been charted out was after a thorough scan of the strengths and

weaknesses within the organization as well as opportunities and threats in the

environment. Consideringmultidimensionalopportunities in the energy sector, NTPC willadopt a multi-pronged growth strategy for capacity addition through Greenfield sites,

expansion of existing stations, takeovers and joint ventures. The capacity addition plans

that NTPC have drawnupforthefifteen-yearperiod using allthe above strategies toenable

thecorporationto become a 40,000 MW company by 2012 A.D.

MISSION:Develop and provide reliable power, related products and services at

competitive prices, integrating multiple energy sources with innovative and ecofriendly

technologies and contribute to society"

Make available reliable and quality power in increasingly large quantities at competitiveprices and ensuretimelyrealizationofrevenues.

Adopt a broad based capacityportfolio including HydroPower, LNG, NuclearPower, andnonconventional and eco-friendlyfuels

Plan and speedily implementpowerprojects using state-of- the arttechnologies. Be an integrated utility by implementing strategic diversifications in areas such as power

trading distribution,transmission,coalmining,coal beneficiationetc.

Develop a strongportfolioofprofitable businesses inoverseas markets includingtechnicalservices,generation assets etc.

Continuously attract and developcommitted humanresources tomatchworld standards.


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Lead fundamental and applied research for adoptionof the state-of-the-art technologies,breakthroughefficiencyimprovements and newfuels.

Lead developmental efforts in the Indian power sector including assisting state utilityreform,policyrecoveretc.

Be a socially responsible corporate entity with thrust on environment protection, ashutilization,community development, and energyconservation.

2.4 NTPC: CULTURE

Corevalues are both intensely and widely shared

Climateofhigh behavioralcontrol

Lowemployeeturnover

High agreement amongtheemployees,forwhat NTPC stands for.

Allthesepointtothefactthat strongcohesiveness,loyalty and organizationcommitmentexist in NTPC loweringhe attrition Rate.

2.5 Simhadri NTPC:

AddressP.O. Simhadri-531 020, Dist. Vishakhapatnam, Andhra

Pradesh

elephone (STD-08924,STD-Vizag-0891) 243001

ax 243092

LocationNearPittavanipalem Village,Dist. Vishakhapatnam,

Andhra Pradesh

Govt approveddate 24.07.1997 (Zero date 8.7.1997)

ApprovedCapacity/Installed

Capacity1000 MW

lantConfiguration 2X500 MW

LandAvailability 3384.24 acres (entireland)

Coal Source Kalinga Block ofTalcher Coalfields in Orrisa

Water Source Yelurucanalfor sweetwater, Sea waterfor CW system.

Beneficiary States Andhra Pradesh (100%).

Approved Investment Rs.3650.79 Cr. (I Qtr.97).

Associated Transmission System Implemented byAPTRANSCO.

nitsCommissioned

Unit-I Commissioning: Feb 2002

Unit-II Commissioning: Aug 2002

InternationalAssistance JBIC


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Simhadri is the ambitious projectofthe National ThermalPower Corporation (NTPC)

intended toprovide theevergrowingpowerneeds ofthe stateofAndhra Pradesh. Infact,

NTPC comes totherescueofabout 20 millionunits ofpowerconsumed every day in Andhra

Pradesh. The constructionwork of theproject is under way. Mr. R.C. Srivatsavhas been

appointed as the General Manager for the Simhadri Project Operations. With the

completionof theproject,thetotalpowergenerationcapacityofNTPC willreach to 3600

MW in Andhra Pradeshwith NTPC Ramagundum alreadygenerating 2100 MW a day. TheProjectwas developed nearParawada and 3384acres ofland was allocated fortheconstructionof the Thermalplant. Theheightof theChimney is 275-feet - a record in

Asia for being the tallest factorychimney. Near to this are the 165-meter two cooling

towers. The Coalfortheprojectwill becomingtotheplanwith a specialrailline setupfor

this. Coal will be drawn from the Mahanadi Coal Fields in Orissa drawingover 6 Million

tones of coaleveryyear. The Coal transport for the NTPC Simhadri Project is expected to

begin in December 2002.

Thewater intakefortheprojectforcooling is done by sea water drawnfrom 8.9 kms

awayfrom the BayofBengalthrough an intake-well sized 9100 cubicmeters. This intake-

well is again the biggestwell constructed in theentire India. Theproject alsogets Sweetwaterfromthe Yelurucanal.

Thepowergenerated at NTPC Simhadri will be bought by AP Transco- thepower

distribution armofthe Electricity Board inthe state. The approximatesellingpriceofpower

is expected to be at Rs. 2.10 as against to the price from private power generation

companies whichwas at Rs. 3 - 4 perunit.

The 500 MW First Boilers atthe NTPC Simhadri, Boilerwas ignited on November 6,

2001. This is a mile stone inthehistoryofNTPC Simhadri.

Thecommencementofthe 500 MW firstunits was expected to begin in March 2002

whilethe second unit is expected to begin by December 2002. To save the environment from pollution, NTPC Simhadri has taken ample steps.Towards this is theprojectofplantingtrees and maintaininggreenery around the site.

2.6 NTPC: CORE VALUES &OBJECTIVES

CORE VAL

ES

This corporateplanprovides details oftheoverall agendafor NTPC. The successful delivery

ofthis agenda would require a committed work forcethat identifies with and supports the

vision. Toensurerealizationofthis corporate agenda, a setofcorevalues should becentral

to, and governeach activityoftheorganization. Known as oneofthe NAVRATANS ofthe

PSUS NTPC has its followingcorevalues. They are known as (BCOMIT) as follows:-

B-Business Ethics

C-Customer Focus

O-Organizational & Professionalpride

M-Mutual Respect and Trust

I- Innovation & Speed

T-Totalqualityfor Excellence


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2.7 SWOT ANALYSIS

STRENGTHSy Largestmarket share in domesticpowergeneration and a broad customerportfolio

across thecountry.

y Excellent track record of performance in project implementation and plantoperation.

y Diversified thermalgenerationportfolio multiple sizes and fueltypes.y Highly skilled and experienced human resources, exposed to state-of-the art

technologies inprojectexecution and powergeneration.

y Navaratna statusy High brand equity among shareholders.y Strong balance sheet abilitytoraiselowcost debt.y Engineering skills inprojectconfiguration and package design.y Turnaround abilityforold plants demonstrated inthetakeoverplants ofTalcher,

Tanda & Unchahar.

y Highcreditratingthat is indicativeoftheconfidenceoflenders.y In-housetrainingfacility (PMI), CENPEEP, R&D etcthat assist in developmentofthe

sector. Thrust on reducing social costs of capacity growth strong execution of

Resettlement and rehabilitationplans.

WEAKNESSy Lowrisk-diversificationofbusiness portfolioconsists primarilyofgeneration assets.y Poorfinancialhealthofcustomers.y Functionalorientationhamperingcross functionalperspective in decisionmaking.y Long and multi layered procurementprocess leadingtolonglead times and process

delay.

y Fragmented IT architecture.y Gaps in HR systems such as performancemanagement,rewards and incentives and

career development.

y Inadequate deployment of a strong knowledge management system that couldassist in improvingefficiency and effectiveness in all aspects ofthe business.y Hierarchyfor decisionmakingthat affects responsiveness.y Role ambiguity and dilutionwithin differentlends oftheorganization.

OPPORTUNITIESy Expand generationcapacities byputtingupthermal and hydrocapacities; maintain

thepositionofa dominantgeneratingutility inthe IndianPower sector.


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y Broad base fuel mix by considering imported coal, gas, domestic coal, nuclearpoweretcwith a viewtomitigatefuelrisks and maintainlongruncompetitiveness.

y Expand services for EPC, R&M and O&M activities in the domestic as well asinternationalmarkets.

y Backward integrate into fuel management to exercise greater control andunderstandingofsupplyeconomics.

y Lead the development and commercial deployment of non-conventional energysources especially inthe distributed generationmode.

y Improvecollections bytrading, direct saleto bulk customers and the activerole inallocation innewplants.

y Execute increased numberofpowerplants that classify for Mega PowerProjectsstatus,therebyreducingthecostoftheprojects and power and powergenerated.

y Forward integrate intothe distribution business in India. THREATS

y Limited experience of operating in a truly liberalized environment withcompetition.

y Limited experienceofoperating in an independentlyregulated system.y Redirectingpowermay beconstrained by inter-regionalconnectivity.y Downward regulatory and competitivepressureontariffs.y Stringent norms for approvalof increase in capital costs forprojects in eventof

timeoverrun.

y Stringentenvironmentalnorms inthefuturemay add tothecostofgeneration.y Absence of an independent regular for coal industry and the delay in private

investments lendingtotherisk oflow availabilityofcoal inthefuture

2.8 DIVERSIFICATION

NTPCs questfor diversification started with its foray into HydroPower. Ithas, sincethen,

beenmoving towards becoming a highly diversified company through backward, forward

and lateral integration. Thecompany is wellon its way to becoming a n Integrated Power

Major , having entered Hydro Power, Coal Mining, Power Trading, Equipment

Manufacturing and Power Distribution. NTPC has made long strides in developing its Ash

Utilization business. In its pursuit of diversification, NTPC has also developed strategicalliances and jointventures withleadingnational and internationalcompanies.

Hydro Power: Inordertogive impetus tohydropowergrowth inthecountry and tohave a balanced portfolioofpowergeneration, NTPC entered hydropower business

with the 800 MW Koldamhydroprojects in HimachalPradesh. Twomoreprojects

have also been takenup in Uttarakhand. A whollyowned subsidiary, NTPC Hydro

Ltd., is settinguphydroprojects ofcapacities upto 250 MW.


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CoalMining: In a major backward integrationmove to create fuel security, NTPChas ventured intocoalmining business with an aimtomeet about 20% of its coal

requirement from its captivemines by 2017. The Governmentof India has so far

allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint

ventureroute. CoalProduction is likelyto start in 2009-10.

Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a whollyowned subsidiarywas created fortradingpower leading tooptimalutilizationofNTPCs ass ets. It is

the second largest power trading company in the country. In order to facilitate

powertrading inthecountry,Na tionalPower Exchange Ltd. , a JV between NTPC,

NHPC,PFC and TCS has beenformed foroperating a Power Exchange.

Ash Business: NTPC has focused on theutilizationof ash generated by its powerstations toconvertthechallengeofash disposal into anopportunity. Ash is being

used as a rawmaterial inputforcementcompanies and brick manufacturers. NVVN

is engaged inthe business ofFly Ashexport and saleto domesticcustomers. Joint

ventures withcementcompanies are beingplanned to setupcementgrindingunits

inthevicinityofNTPC stations. Power Distribution: NT PC Electric Supply Company Ltd. (NESCL ), a whollyowned

subsidiaryofNTPC,was setupfor distributionofpower. NESCL is activelyengaged

inRaji v Gandhi Gramin Vidyutikaran Yojana programmeforruralelectrification and

alsoworking as 'Advisorcum Consultant' for MinistryofPowerfor implementation

ofAccelerated Power Development and ReformsProgramme (APDRP)launched by

GovernmentofIndia.

Equipment Manufacturing:Enormous growth in power sector necessitatesaugmentationofpowerequipmentmanufacturing capacity. NTPC has formed JVs

with BHEL and Bharat Forge Ltd.forpowerplantequipmentmanufacturing. NTPC

has also acquired stake in Transformers and Electricals Kerela Ltd. (TELK) for

manufacturing and repairoftransformers.

2.9 SUBSIDIARIES :-

NTPC Electric SupplyCompanyLtd (NESCL

Thecompanywas formed on August 21, 2002. It is a whollyowned subsidiarycompanyof

NTPC with theobjectiveofmaking a foray into the business ofdistribution and supplyof

electricalenergy, as a sequeltoreforms initiated inthepower sector.

NTPC Vidyut VyaparNigamLtd (NVVN

Thecompanywas formed on November 1, 2002, as a whollyowned subsidiarycompanyof

NTPC. The companys objective is to undertake sale and purchase of electric power, to

effectivelyutilize installed capacity and thus enablereduction inthecostofpower.NTPC HydroLtd (NHL

Thecompanywas formed on December 12, 2002, as a whollyowned subsidiarycompanyof

NTPC with anobjectiveto develop small and mediumhydroelectricpowerprojects ofupto

250 MW.

Pipavav Power DevelopmentCoLtd

(PPDCL

A memorandumofunderstandingwas signed between NTPC, GujaratPower Corporation

Limited (GPCL) and Gujarat Electricity Board (GEB) in 2004 for developmentofa 1000 MW


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thermal power project at Pipavav in Gujarat by forming a new joint venturecompany

between NTPC and GPCL with 50:50 equityparticipation.Pursuanttothe decisionofGujarat

Government, NTPC Ltd.has dissociated itselffromthis company.PPDCL is underwindingup.

Kanti Bijlee Utpadan Nigam Limited (formerly known as Vaishali Power Generating

CompanyLimited

Totakeover Muzaffarpur ThermalPower Station (2*110MW), a subsidiarycompanynamed

Vais hali Power Generating Company Limited (VPGCL) was incorporated on September 6,

2006 with NTPC contributing 51% of equity and balanceequitywas contributed by Bihar

State Electricity Board. This companywas formed torenovatetheexistingunit and runthe

plant. The second unithas been successfully re-synchronized on October 17, 2007 after 4

years ofbeing idle. Renovation and modernizationof the firstunit is underprogress. The

companywas rechristened as Ka nti Bijlee Utpadan Nigam Limited on April 10, 2008.

Bharatiya RailBijleeCompanyLimited (BRBCL

A subsidiary of NTPC under the name ofB haratiya Rail Bijlee Company Limited was

incorporated on November 22, 2007 with 74:26 equitycontributionfrom NTPC and Ministry

ofRailways, Govt.ofIndia respectivelyfor settingupoffourunits of250 MW eachofcoalbased powerplant at Nabinagar, Bihar. Investment approvaloftheprojectwas accorded in

January, 2008.

3. BUSINESS MODEL OF NTPC1. Efficiency improvement includes both improvements in theexistingprocess and

through improvement in the technology used to increase the productivity of the

company. Research & Development Centre is ISO 17025 accredited and provides

high end scientific services to all the companys s tations as well as manyoutside

stations resulting in improving availability and reliability of stations by providing

condition assessment, failure analysis, solving and analyzing specificproblems, and

helpingour stations in increasingthe availability and reliabilityoftheirunits.

2. Costefficiency i.e.providingpower atreasonableprices sothattheycould providepowerto all inneed. Theirultimate aim is toreducethecost becausewithout being

the cost leader they can t dominate the market. So as a market leader they are

always aiming atreducingthecost.


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3. Technology enhancement i.e. to stay in competition they have to continuouslyenhancetheirtechnology. Technologyenhancement is also a partofcostefficiency.

Thatmeans by applying thenewtechnologies thecompanycanreduce thecost as

well as improvetheefficiency.

4. Eco friendly system: Driven by its commitment for sustainable growth of power,NTPC has evolved a well defined environment management policy and soundenvironmentpractices forminimizingenvironmental impact arisingoutofsettingup

ofpowerplants and preservingthenaturalecology.

3.1 OPERATIONS OF THE BUSINESS

ThepurposeofthelocationofNTPC in Visakhapatnam istofind anoptimallocation

whichwillresult inthegreatest advantagetotheorganization.

There is minimalwastageofresources becauseofthis location. BHEL is themajor supplierofequipmentfor NTPC Simhadri. It is located at a distanceof20 Kms fromtheplant.

HPCL is themajor supplierofFUEL. It is located at a distanceof20 Kms.

Theplant is quitenear to Sea ports, Railway station (tohandlecoal from Australiaand Talcher) and Airport.

It distributes powertoPower Grid which is just 10 Km awayfromthelocationofthe

plant and hencethere is nowastageofpower duringtransmission. Nearestwater source is Yeleru Canal.5 Kms from Seashore as ituses sea wateras coolant incoolingtowers.

LOCATION OF FACILITY FOR NTPC


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PLANT LAYOUT AND MATERIAL HANDLING

Coal is handled and processed. It is then senttotheunits 1,2,3,4. Units 1 and 2 are linked with chimney 1 which consists of 2 chimneys internally.

Similarlyunits 3 and 4 arelinked withchimney 2.

Eachunit is linked withcoolingtowers inordertocoolthesteam. Sea waterpumphouselinks withcoolingtowers inorderto supply Sea water as a coolant.

DM plantlinks alltheunits inorderto supply DM water. Yeleru Reservoir Canal is linked with DM plantto supplywater. Everyunit is linked withpowerhandling and transmission stationwherepower is

transmitted tothepowergrid.

Also,eachunit is linked with Ashpond through Ash dispenser.

NTPC SIMHADRI OVERALL LAYOUT


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1. Cooling Tower 10. Steam Control Valve 19. Superheated

2. Cooling WaterPump 11. HighPressure Steam Turbine 20. Forced Draught (Draft) Fan

3. Transmission Line (3-Phase) 12. Deaerator 21. Reheater

4. Step-Up Transformer (3-Phase) 13. Feedwater Heater 22. Combustion Air Intake

5. Electrical Generator (3-Phase) 14. Coal Conveyor 23. Economizer

6. LowPressure Steam Turbine 15. Coal Hopper 24. AirPreheater

7. CondensatePump 16. CoalPulverizer 25.Precipitator

8. Surface Condenser 17. Boiler Steam Drum 26. Induced Draught (Draft) Fan

9.IntermediatePressure Steam Turbine 18. Bottom Ash Hopper 27. Flue Gas Stack

D Coal is imported from Talcher and Australia which is transported to the plantthroughrail.

D Coalwagons arehandling atthe Coalhandling station.

GENERAL THERMAL POWER PLANT LAYOUT

COAL PROCESS LAYOUT


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D Fromthecoalhandling station,coal is either stored in Stock Yard or directly senttoCoal Crushingmill,whichcrushes coalto 20mm size.

D Through Conveyor belts,coal is senttobunkers.D From bunkers it is sentto Coalmillwherecoal is milled topowdered state.D Thepowdered coal is mixed with air and sentto Coal Gun.D From Coal Gun, it is senttothe Coal Furnace.D

Thecoalfurnace is surrounded bywaterwalls whichconsistofDM water. DM water is supplied from Boiler Drum to Coal Furnace which is more than 165

meters highfrom Coal Furnace.

Coal is supplied throughcoalgun. Initially,thecoal is burntwiththehelpofDiesel. Two kinds ofDiesel areused: HSD

(High Speed Diesel) and LSD (Low Speed Diesel). First LSD is used and then HSD is

used. Later, Oil supply is stopped and coal is leftfor burning.

Inorderto ignitethefurnace, DC supply is given bythe DC inverters. Theheatgenerated bythecoalfurnace is morethan 1200 degrees centigrade. Whenwater comes through thewaterwalls, itgets heated upto 540 degrees and

turns into steam.

This steamflows toturbines atvarious pressures. These turbines are linked with generators which generate power and these

generators supplypowertopower stations fromwhere it is senttopowergrid.

After the Coal is burnt, itturns into Ash. Bottom Ash is collected at Bottom Ashingand the Fly ash at the Induction Fans (IDF). Ash flows through IDF to ESP (Electro

StaticPriscribrators). Inthis ESP, 99% ofAsh is sentto bottom Ashing. Less than 1%

ofthe Fly ashgoes through Chimneys which is 275 meters high. So,there is veryless

Airpollution.

UNIT LAYOUT 1(IN ORDER TO KNOW THE INTERNAL

OPERATION OF COAL FURNACE)


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y Steamgenerated inthecoalfurnace is supplied tothe Economizer.y From there, it is sent to the Superheaterwhichhas anelaborate setupof tubing

where the steam vapour picks up more energy from Hot Flue gases outside the

tubing and its temperature is now superheated abovethe saturationtemperature.

The super heater steam is then piped through the main steam lines to the walls

before the high pressure turbines. From High Pressure turbines (HP) steam is

transferred to SuperHeater again and thento IP (Intermediatepressure)turbine.

yThe turbines are connected to generators where power is generated and sent topowergrid.

y Afterthis,the steamloses its pressure and hence is senttolowpressureturbine (LP).Then, steamhas verylowpressurewhichcannot beused fortheturbines. Hence, it

is senttocondenserwhich is in Vaccum.

y Thecondenser is a shell and tubeheatexchanger inwhichcoolingwater is circulatedthroughthetubes. Theexhaust steamfromthe LPturbines enters the shellwhere it

is cooled and converted tocondensate (water) by falling over the tubes. Such

condensers use steam ejectors for continuous removal of air and gases from the

steam side tomaintain vaccum. This condensated steam is converted towater by

thecoolingtowers inwhichcoolant is sea water.

yThewaterfromthecoolingtower is senttohotwell.

y Fromhotwell, the waterwill go through condenserpumps through lowpressuretemperatureheater,thenthrough Highpressuretemperatureheaters. This is called

Re-heating or Re-cycling system (Deaerator system) to Boiler speed pump. Each

boiler speed pumpconsumes 10MW in 500MW generated power.

y Deaerators to boil speed pumps and to HP heaters and toFRS (Feed RegulatingStation)to Boiler Drum.

UNIT LAYOUT 2(IN ORDER TO KNOW THE INTERNAL OPERATION AND

PROCESS OF TURBINE)


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y Hencewhatever DM waterwas vaporized is again De-vaporized to DM water again.This comes back to Boiler Drum again.

y Incyclicprocess,this watergoes downfrom Boiler drumto Furnace.y In between theprocess ofvaporizing and de-vaporizingofwater, 10% ofwater is

lost. This lostwater is madeup bymakeuppumps which areconnected tothe DM

plant.

Water is supplied from Yeleru Canaltothereservoir. Fromhere,this water ispumped to DM plant.

This water is purified withthehelpofAulum and Chlorine inthefirst stage.This water is called Filterwater.

Filter water is sent through gravity filters by whichwe get pure drinkingwater.

This purewater is sentto Cat-ionvessel and thento Cat-ionexchanges fromheretotheDegasser and thento An-ionexchanger and tomixed bed.

Thewater comingoutof themixer bed is 100% pureDematerialized water(DM).

DM water is stored in DM watertank. The DM water tank is linked with DM watermakeuppumpwhich is againlinked to boiler drum.

Thepowergenerated throughthegenerators is 18 Kv.

DE-MINERALIZATION PLANT LAYOUT

POWER STATION LAYOUT


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This 18 Kvpower is stepped up by step-upgeneratorto 400 Kv. This is done inorderto avoid heavy Cablingfortransmissionofpower. This is senttopowergrid. FromPowergrid, thepower distributions are 400 Kvwhich is given to factories. In

the same way 33 Kv, 11 Kv are stepped onto 440v and again stepped onto 230v

which is used tohousehold purpose.

3.2 OPERATING STRATEGIES OF NTPCMaintain its position as theleader:

As the largest power Generation Company in India NTPC Ltd is looking to

increase its capacityto 75000 MW by 2017.

Adoptthenewtechnology:NTPC Ltd is also looking toutilizeother sources ofpowergeneration in the

next 5 years namely Hydelpower and nuclearenergytogenerateelectricity.

Resourcemanagement:The company will look to continue with their stringent recruitment and

retentionpolicywhichhas provided itwiththe bestminds inthecountry.

Environmentmanagement:Being the leader in its trade the company will look towards fulfilling its

corporate socialresponsibility and contributingtowards theenvironment.

3.3 ORGANIZATION STRUCTURE:


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3.4 CORPORATE OBJECTIVE BUSINESS PORTFOLIO GROWTH

y To further consolidate NTPCS position as the leading thermal powergeneration company in India and establish a presence in hydro power

segment.

y To broad base the generation mix by evaluating conventional sources ofenergytoensurelongruncompetitiveness and mitigatefuel-risks.

y To diversify across thepowervalue chain in India by considering backwardand forward integration into areas such as power trading, transmission,

distribution,coalmining,coal beneficiation,etc.

y To develop a portfolioofgeneration assets in internationalmarkets.y Toestablish a strong brand inthe domestic & internationalmarket.

CUSTOMER FOCUSy

Tofoster a collaborative styleofworkingwithcustomergrowingto bea preferred brand for supplyofqualitypower.

y To expand the relationship with existing customers by offering abouquetofservices in additionto supplyofpowere.g.trading,energy

consulting, distribution consulting, management consulting,

managementpractices.

y To expand the future customer portfolio through profitablediversification into downstream business, inter alia retail distribution

and direct supply.

y To ensure rapid commercial decisionmaking,using customer specificinformationwith adequateconcernforthe interests ofthecustomer.

AGILE CORPORATION

y Toensureeffectiveness in business decisions and responsiveness tochangeinthe business environment by

y Adopting a portfolio approachtonew business development.y Continuous and coordinated assessment of the business environment to

identify and respond toopportunities and threats.

y To develop a learning organization having knowledge based competitiveedge incurrent and future businesses.

y To effectively leverage information technology to ensure speedy decisionmaking across theorganization.

PERFORMANCE LEADERSHIPy To continuously improve on project execution time and cost in order to

sustainlongruncompetitiveness ingeneration.

y Tooperate & maintain NTPC stations atparwiththe best-runutilities intheworld withrespectto availability,reliability,efficiencies.

y To aimforperformanceexcellence inthe diversification businesses.y Toembed quality in all systems and processes.

HUMAN RESORUCE DEVELOPMENT


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y Toenhanceorganizationalperformance by institutionalizing anobjective andopenperformancemanagement system.

y To align individual and organizationalneeds and develop business leaders byimplementing a career development system.

y To enhance commitmentof employees by recognizing and rewarding highperformance.

y To build and sustain a learning organization of competent world-classprofessionals.

y To institutionalize core values and create a culture of team building,empowerment, equity, innovation and openness which would motivate

employees and enable achievementofstrategicobjectives.

FINANCIAL SOUNDNESSy To maintain and improve the financial soundness of NTPC by prudent

managementofthefinancialresources.

y To continuously strive to reduce the cost of capital through prudentmanagement ofdeployed funds, leveraging opportunities in domestic and

internationalfinancialmarkets.

y To develop appropriatecommercialpolicies and processes this would ensureremunerativetariffs and minimizereceivables.

y Tocontinuously striveforreduction incostofpowergeneration by improvingoperatingpractices.

SUSTAINABLE DEVELOPMENTy To contribute to sustainablepower development by discharging corporate

socialresponsibilities.

y To lead the sector in the areas of resettlement and rehabilitation andenvironment protection including effective ash-utilization, peripheral

development andenergyconservationpractices.y To lead developmentalefforts inthe Indianpower sectorthroughefforts at

policy advocacy, assisting customers in theoperations and managementof

powerplants etc.

RESEARCH and DEVELOPMENTSy Topioneerthe adoptionofreliable,efficient and cost-effectivetechnologies

by carrying out fundamental and applied research in alternate funds and

technologies.

y Tocarryoutresearch and developmentofbreakthroughtechniques inpowerplantconstruction and operationthatcanlead tomoreefficient,reliable and

environmentfriendlyoperationofpowerplants inthecountry.

yTo disseminate the technologies to other players in the sector and in thelong-rungeneratingrevenuethroughproprietarytechnologies.

3.5 SUPPLY CHAIN MANAGEMENT Coal is supplied from Talcher and Australia which is stored and maintained verywell

atthe Coal Stock yard.

There areno retailers or distributors. Everything is taken care by the governmentsince it is a State-owned company.


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Supply of electricproducts are done by BHEL which is also a government ownedenterprise.

Chiefwater source is Yelerucanal.

4. ISSUES AND CHALLENGES

4.1 HUMAN RESOURCES

People beforePLF (Plant Load Factor)' is theguidingphilosophy behind theentiregamutof

HR policies at NTPC. NTPC are stronglycommitted tothe development and growthofallour

employees as individuals and not just as employees.NTPC currentlyemploy approximately

24500 people at NTPC.

Competence building, Commitment building, Culture building and Systems building arethe

four building blocks onwhichour HR systems are based.

RECRUITMENT

NTPC believe inthephilosophyof'Growyourowntimber'. Our 'Executive Trainee' schem

was introduced in 1977 withtheobjectiveofraising a cadreofhomegrownprofessionals

First Division Graduate Engineers/ Post graduates are hired through nation-wide open

competitiveexaminations and campus recruitments. Hiring is followed by 52 weeks offull

paid inductiontraining.

CAREER ADVANCEMENT AND OPPORTUNITIES

NTPC have a well established talent management system in place, to ensure thatNTPC

deliveronourpromiseofmeaningfulgrowth and relevant challenges forouremployees

Ourtalentmanagement systemcomprises PERFORMANCE MANAGEMENT, CAREER PATH

and LEADERSHIP DEVELOPMENT.

REWARDS AND RECOGNITIONS

Wehave,from inception,created a cultureofrewards and recognitions throughcelebratio

ofvarious achievements and events andrecognizingthecontributions behind such success.

INNOVATE, CREATE, COMPETE

Wehave introduced numerous initiatives which seek toenhancethecreativity, innovation,

functional aptitude and teamwork of our employees. These initiatives include Nationa

Open Competition for Executive Talent (NOCET), Professional Circles, Quality Circles,

Business Minds and Medha Pratiyogita (a quiz forouremployees). A management journal


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called H orizon

is published quarterly to enable the employees to share their ideas an

experiences across theorganization.

QUALITY OF WORK-LIFE

NTPC is proud of its systems forproviding a good qualityofwork-lifefor its employees. In

additiontoproviding beautiful and safework places, NTPC encourages a cultureofmutua

respect and trust amongstpeers, superiors and subordinates.

Away from hectic city life, NTPC townships provide an environment of serenity, natural

beauty and close community living. Numerous welfare and recreation facilities includin

schools,hospitals and clubs areprovided atthetownships toenhancequalityof life & th

well being of employees and their families. An entire range ofbenefits, from child care

leavetopostretirementmedical benefits areextended toemployees tomeet anyexigenc

thatmay arise in a person's life.

KNOWLEDGE MANAGEMENT INNTPC

To meet our ultimate objective of becoming a learningorganization, an integratedKnowledge Management Systemhas been developed,which facilitates tacit knowledge i

the form of learning and experiences of employees to be captured and summarized fo

futurereference.

TRAININGAND DEVELOPMENT

NTPC subscribes tothe beliefthatefficiency,effectiveness and success oftheorganization,

depends largelyon the skills, abilities and commitmentof the employees who constitut

themost important assetoftheorganization.

Our TrainingPolicyenvisages a minimumof7 man days oftrainingperemployeeperyear

NTPC have developed ourowncomprehensivetraining infrastructure.

EDUCATION UP-GRADATION SCHEMES

To meet the academic aspirations of employees and match them with theneeds of th

organization, NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS

Pilani, etc. NTPC sponsors fixed size batches of employees who are inducted into thes

courses based on theirperformance rating in the company and theirperformance in th

entrance exam conducted by the respective institute. Unlike other study leave an

sabbaticals, employees undergoing these courses do not forego their salary or growt

duringthe durationofthecourse.

SEEKING FEEDBACK

NTPC actively seek and encourageemployeefeedback toensurethatour HR intervention and practicesremain relevant and meaningful. NTPC regularly conduct Employee

Satisfaction and Organizational Climate Surveys.

AWARDS

NTPC derive immense satisfaction from the awards NTPC receive and the resulting

recognitionthey bestow. The awards are key indicators and milestones onour HR journey

and reinforce our HR philosophy and practices. NTPC has been awarded No.1, Bes


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Workplace in India among largeorganizations for the year 2008, by the Great Places to

Work Institute, India Chapter incollaborationwith The Economic Times.

4.2 FUTURE CAPACITY ADDITIONS

NTPC has formulated a longterm CorporatePlanupto 2017. Inlinewiththe CorporatePlan,thecapacity additionunder implementation stage is presented below:

PROJECT STATE MW

Coal

1. NCTPP II ( 2x490

UttarPradesh 980

2 Korba III ( 1x 500

Chhattisgarh 500

3 Sipat I (3 x660

Chhattisgarh 1980

4. Farakka III ( 1x 500

West Bengal 500

5. IndiraGandhi STPP-JV with IPGCL & HPGCL ( 3 x 500

Haryana 1500

6. Simhadri II ( 2x 500

Andhra Pradesh 1000

7. Vallur I -JV with TNEB ( 2x 500

Tamilnadu 1000

8. Vallur Stage-I Phase-II -JV with TNEB ( 1x 500

Tamilnadu 500

9. Bongaigaon(3 x250

Assam 750

10. Mauda ( 2x 500

Maharashta 1000

11. Rihand III(2X500

UttarPradesh 1000

12. Vindhyachal-IV (2X500

Madhya Pradesh 1000

13. Nabinagar TPP-JV with Railways (4x250

Bihar 1000

14. Barh II (2X660

Bihar 1320

15. Barh I (3 X660

Bihar 1980

Hydro

1. Koldam HEPP ( 4x200

HimachalPradesh 800

2. Loharinag Pala HEPP ( 4x150

Uttarakhand 600

3. Tapovan Vishnugad HEPP (4x130

Uttarakhand 520

Total 17930

NTPC Limited,countrys largestpowergeneratingcompanyhaving an installed capacityof

30,144 Mw, is adding 6,500 Mw inthe southernregion. Ofthis, 1,000 Mw is forthe Simhadri

Super Thermal Power Station at Visakhapatnam, according to NTPC regional executive

director (south)Ambarish N Dave.

Of the two 500 Mwunits planned to be added at Simhadri,oneunitwould be ready by

November 2010 while the second would comeup in the subsequentphase. The Simhadri

powerplantexpansion is estimated tocost about Rs 5,130 crore.

Andhra Pradesh would get about 35 per cent power from the new capacity addition at

Simhadri. The remaining would be distributed in the southern region according to the


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agreements withtherespective states. Theentirepowercurrentlygenerated bythe 1,000

Mw Simhadri plant is beingused bythe state.

In Tamil Nadu,thecompanywould add another 500 Mwonce its 1,000 Mwplant at Vallur is

complete. Theplant is being setup at anestimated costofRs 5,123 crore in jointventure

withthe Tamil Nadu Electricity Board.

This apart,thecompany is also intheprocess ofconductingfeasibility studies forthe 4,000

Mwpowerplant at Kudgi in Bijapur districtofKarnataka. Theprojectwould beexecuted

together with Power Company of Karnataka Limited for which a memorandum of

understandingwas signed in January this year. Theprojectwould have threeunits of800

Mweach in Stage I and twounits ofsimilarcapacity in Stage II.

Feasibility studies formultiple locations for a 500Mwwind powerproject in Karnataka too

would beconducted soon.

NTPC was in talks with Gas Authorityof India Limited for supplyof liquefied natural gas(LNG) to the Rajiv Gandhi Combined Cycle Power Project at Kayamkulam in Kerala. The

companywould takeup Stage II expansionoftheprojectuponavailabilityoffuel (LNG) at a

viablecost. Theproposed expansionwould notrequire additionalland.

The southern region achieved thehighest-evergenerationof32,067.76 millionunits (mu)

duringthefinancialyear 2008-09, surpassingthetargetof29,775 mu.

4.3 CHALLENGES WITH COAL RESOURCES

The policychanges in coal sector provide an opportunity to NTPC to enter captive coal

mining business.Production is expected by 2010 inone coal block already allotted (Pakri

Barwadih in the state of Jharkhand). Five more blocks (~40MTPA) have been allotted toNTPC, includingtwo in JV with CIL.

In additionto developmentofits own domesticcoalmines NTPC is exploringvarious other

options including acquisitionofstake incoalmines abroad for sourcingofthermalcoalfor

addressingfuel securityconcerns.

Ash Utilization is oneof the key concerns at NTPC. The Ash Utilization division, setup in

1991, strives to drivemaximumusagefromvastquantities ofashproduced at its coal base

stations. The division proactively formulates policies, plans and programmes for Ash

Utilization. It further monitors theprogress in these areas and works at developingne

fields ofAsh Utilization.

The quality ash produced conforms to the requirements of IS 3812 2003. The fly ashgenerated at NTPC stations is idealforuse incement,concrete,concreteproducts,cellular

concrete, lightweight aggregates, bricks/blocks/ tiles etc.this is attributed tovery low loss

on ignitionvalue. Tofacilitate availabilityofdry ashtoend users, allthenewunits ofNTPC

areprovided withthefacilityofdry ashcollection system.Partial dry ashcollection systems

have also been setup at the existing stations where these facilities did not exist earlier.

Augmentationofthese systems to 100% capacity is inunderprogress.


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As theemphasis ongainfulutilizationofashgrew, its usageovertheyears also increased.

From 0.3 milliontons in 1991 1992,thelevelofutilization during 2008 09 stood atover

24.40 milliontons.

The various segments of Ash Utilization currently includes use by a number of Cement,

Asbestos Cementproducts & Concretemanufacturing industries, Land development, Road& Embankments, Ash Dyke Raising and BuildingProducts. Such as bricks/ blocks / tiles, as a

soil amender and sourceofmicronutrients in agriculture and backfillingofmines.

AREAWISE BREAK-UP OF UTILISATION FOR THE YEAR 2008-09 IS AS UNDER:

AreaofUtilization Quantity (inMillion Tons

Cement Industries 7.04

ReadyMixConcrete 0.33

Asbestos 0.20

ClayAsh/ FlyAshBricks 1.64

Land Fill 5.74

Ash Dyke Raising 6.24

Road/ Embankments 1.30

Mine Filling 1.14

Agriculture 0.002

Export 0.73

Others 0.02

Total 2440

MAJOR INITIATIVES TAKENBY NTPC TOWARDS ASH UTILISATION

NTPC continually strives toevolve innovative and diversemeans ofAshUtilizationtofurther

broadenthe scope.Prominent amongthemethods devised sofar are:

Dry Flyash Extraction Systems Use incement & concrete Use in Ash based products including settingupof

o Ash TechnologyParko Land Development/Wasteland Development, Roads & Embankments, Raising

Ash Dykes'

Minefilling / Stowing Agriculture

NTPC Ash Utilization Divisionhas published multipleliteratures ontheuseofash invarious

applications intheformofbooks & promotional brochures and documentaryfilms tocreateawareness among the prospective users & entrepreneurs for use of ash. The booklets/

brochures/ films are:

BROCHURES:

D Fly Ash BricksD Clay Ash bricksD Clay Ash Bricks with 60% Fly Ash


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D Coal ash Environmentfriendlymaterial- Forfills, Embankments and Road pavementConstruction

D Fly Ash - a Resourcefor Cement & ConcreteD UseofAsh in agriculture (In Hindi)

FILMS:

Clay Ash Bricks Fly Ash Bricks UseofFly Ash in Mine Filling Coal Ash As Fill Material5. CONCLUSIONS/RECOMMENDATIONSD NTPC Simhadri planthas created a benchmark in technologyutilization, efficiency

and effectiveutilizationofresources.

D Ithas been achievingrecords rightfrom its synchronization.D It is the only Power plant in India where maximum Automation is done in its

operations.

D It is thefirstpowerplantwhichuses sea water as a coolant.D Ithas also achieved greatenvironment standards through its infrastructurefacilities

like Tallest Chimneys in Asia (275m), Tallestcoolingtowers in Asia and maintaining

an Ashpond which is eco-friendly.

D It beenmaintainingexcellent CSR(Corporate Social Responsibility) byproviding jobsto the land losers along with good compensation, providing employment for the

locals on a contract basis, constructionof roads, drainage systems, drinkingwater

supply,hygienicconditions,hospitals, schools,etc allwithin 8 Kms ofthe NTPC plant.

D NTPC Simhadri has followed theprinciples ofproduction and operationmanagementquitewell and alsomaintained good relationshipwithin its Micro as well as Macro

environments.

D There should be more Involvement of management at all levels with effectivecreationofpolicies, vision, Mission, values,goals and support, communicated and

implemented throughouttheOrganization.

D There should betrainingofseniorexecutives inmanagingforquality.D It should evaluateplans forexpansion inordertomeetthePowerneeds ofIndia as

well as tocreatemoreemployment.

6. BIBLIOGRAPHY

Operations Managementbooks fromgooglee-book.www.ntpc.co.in

www.ntpc.in

www.google.com

Wikipedia

Forbes India

Business World

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