NHPC,Bablu New

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Organisational Study

East Point College Of Higher Education Page 1

East Point College of Higher Education

Bangalore

A project on NHPC

Submitted by

Bablu Gogoi

MBA 3rd

semester





NHPC

01. Industry profile

02.Company profile

03.Products and services

04.Functional units

05.SWOT Analysis

06.Conclusion





Industry profile

NHPC Ltd is a Mini -Ratna Category-I Enterprise of the Government of India. The company is

one of the largest organisations in the field of hydro power development in the country. The

company is a hydroelectric power generating company dedicated to the planning,

development and implementation of an integrated and efficient network of hydroelectric

projects in India. They execute all aspects of the development of hydroelectric projects,

from concept to commissioning of the projects. NHPC Ltd was incorporated on November 7,

1975 as a private limited company under the name National Hydro Electric Power

Corporation Pvt Ltd. In April 2, 1986, the company was converted into a public limited

company. The company was established with an objective to plan, promote and organize an

integrated and efficient development of hydroelectric power in all aspects. Later, they

expanded their objects to include development of power in all aspects through conventional

and non-conventional sources in India and abroad. During the yea r 1976-77, the company

received Loktak hydroelectric project with a capacity of 105 MW from Government of India

and in the next year, they received Baira Siul hydroelectric project with the capacity of 180

MW. In the year 1982-83, the company commissioned the Baira Siul power station in

Himachal Pradesh. During the year 1983-84, the company commissioned all the units

Devighat power station in Nepal and Loktak power station (105 MW) in Manipur. During the

next year, they set up a Hydro Power Training Institu te at the Baira Siul hydroelectric project

to train operators and supervisory staff. During the year 1987 -88, the company established

a satellite telecommunication network up to link various projects. During the year 1989 -90,

the Government of India upgraded the company from a Schedule B to a Schedule A

corporation. During the year 1992-93, the company set up a consultancy wing to provide a

range of specialised services in the investigation, design, construction and operation of

hydel projects. Also, they c ommissioned Tanakpur power station with the capacity of 120

MW in Uttarakhand. During the year 1995-94, the company commissioned Chamera I power

station with the capacity of 540 MW in Himachal Pradesh. Also, the company was awardedthe lining work of Jawahar Tunnel in Jammu & Kashmir during the year. During the year

1995-96, they signed an agreement for execution of Kurichhu hydroelectric project with the

capacity of 45 MW in Bhutan. During the year 1997 -98, the company commissioned the Uri

power station with the capacity of 480 MW in Jammu & Kashmir and during the year 1999 -

2000, they commissioned Rangit power station with the capacity of 60 MW in Sikkim. During

the year 2000-01, the company commissioned 45 MW Kurichhu power station in Bhutan.





The company entered into an MoU with Government of Madhya Pradesh to exploit the

hydro electric potential of the Narmada basin by completing the Indira Sagar and

Omkareshwar projects. Also they entered into an MoU with Government of Jammu &

Kashmir to exploit the power potential of the state. During the year 2003-04, the companycommissioned the 300 MW Chamera- II power station in Himachal Pradesh. During the next

year, NHDC, a joint venture company commissioned 1,000 MW Indira Sagar hydroelectric

project in Himachal Pradesh. During the year 2006-07, the company added 390 MW

generating capacity with the commissioning of Dul Hasti Hydroelectric Project in Jammu &

Kashmir. The company entered into an agreement with Government of Bhutan for

preparation of DPR of Mangdechhu project with the capacity of 672 MW in Bhutan. During

the year 2007-08, the company commissioned 510 MW Teesta -V power station. NHDC, the

joint venture company commissioned 520 MW Omkareshwar hydroelectric project in

Madhya Pradesh. The company entered into an MoA with the Government of Arunachal

Pradesh to execute the Dibang multipurpose hydroelectric project. Also, they entered into

an MoU with the government of Manipur to exploit the hydro electric potential of the

tailrace discharge of Loktak Downstream Hydroelectric Project. During the year, the

company signed an MoU with the Ministry of Rural Development, Government of India and

Government of Bihar for construction of Rural Roads and the maintenance under Pradhan

Mantri Gram Sadak Yogna in Bihar. The name of the company was changed from National

Hydro Electric Power Corporation Ltd to NHPC Ltd with effect from March 28, 2008. The

company was conferred with Mini-Ratna (Category I) status by the Ministry of Power with

effect from April 28, 2008. During th e year 2008-09, the company entered into an MoU with

the Government of Jammu & Kashmir, JKSPDC and PTC to incorporate a joint venture

develop the Pakal Dul and other hydro projects in the Chenab River Basin. Also, the

company along with NTPC, PFC and Tata Consultancy Services Ltd incorporated a joint

venture company, namely National Power Exchange Ltd. During the year 2009-10, the

company along with NTPC, Powergrid Corporation of India Ltd and Damodar Valley

Corporation incorporated a joint venture company, namely National High Power Test

Laboratory Pvt Ltd. In January 8, 2010, the company signed an agreement with Ministry of

External Affairs (MEA), Government of India for taking up Additional Investigations and

Preparation of Updated Detailed Project Report s for 1200 MW Tamanthi HE Project and 642

MW Shwezaya HE Project in Myanmar. In March 23, 2010, the company has signed an

agreement with Department of Energy, Royal Govt. of Bhutan for providing engineering &consultancy services relating to pre-construction activities of Mangdechhu Hydroelectric

Project (720 MW) in Bhutan at a total cost of Rs. 11.67 crore. In April 28, 2010, an MoU was

signed amongst NHPC Ltd, Government of Manipur and SJVN Ltd for formation of a joint

venture company for implementation o f 1500 MW Tipaimukh Hydroelectric (Multipurpose)

Project in Manipur. NHPC Ltd, SJVN Ltd and Government of Manipur shall have a share

holding of 69%, 26% and 5% respectively. The Unit -I of SEWA-II HE Project started





commercial operation with effect from June 29, 2010. Also, the SEWA -II H.E. Project (120

MW) started commercial operation with effect from July 24, 2010, consequent upon

successful trial run of balance Unit-II (40 MW) of the Project. The company is currently

engaged in the construction of 11 additional hydroelectric projects, which are expected toincrease the total installed capacity by 4,622 MW. Also, the company is awaiting the

Government sanction for a further five projects with an anticipated capacity of 4,565 MW .

Company profile

NHPC ltd. Formerly known as National Hydroelectric Power

Corporation ltd. Was estd. In 1975 as a Government of India owned

company under companies act 1956 to undertake development of

hydroelectric power in the central sector covering all aspects such as

investigations, planning designs, construction ,operation and

maintenance of hydroelectric projects. Now NHPC is a mini Ratna

Catagory-1 enterprise of the Govt. of India with an authorized share

capital of Rs.15,000 cr and an investment base of about Rs.40,471 cr.

NHPC is ranked as a premier organization in the country for

development of hydropower. The company successfully concluded

its IPO worth over Rs.6,000 cr and became listed company on NSE

and BSE with effect from 1st

September 2009.

The company is accredited with integrated ManagementSystem in compliance with PAS 99:2006 for the requirement of ISO

9001:2008,ISO 14001:2004 and OHSAS 18001:2007 for its quality,

Environmental and Occupational Health and Safety Management

System.





Total installed capacity of the power stations owned by NHPC

is 5295 MW (including ISP and OSP Project jointly owned with

Government of Madhya Pradesh , in which NHPC is the Major stakeholder) and 23 states/ union territories of India receive power from

NHPC power stations. New hydroelectric power projects having

aggregate capacity of 4502 MW are under implementation in

different parts of India by NHPC .Subansiri Lower hydroelectric

project is one of such projects.

Project background

Subansiri Lower H.E . project was transferred to NHPC by Ministry of Water Resources and

Ministry of power during year 2000. TEC to the project has been accorded during year 2003

The project is being executed under the following work packages by different

agencies:

Lot SSL 1(Package for which CAR policy is to be taken): The package is related with

Dam and appurtenant works . The Contractor for the work is M/s BGS SCS-SOMA JV..M/s

BGS and SGS are Russian Companies and M/s SOMA enterprise is an Indian company based

in Hyderabad .As on 1st

March 2011 about 40% work have been completed . The details of

the works under this lot are as below :-

y Construction of 5 nos . 9.5 m diameter horse shoe shaped diversion tunnels

including inlet and outlet structures , nallah training works and plugging of tunnels

on completion of Dam works.

y Construction of upstream and downstream Earthfill /Rockfill cofferdams of height

31 m and 21 m respectively including maintenance and removal of cofferdam on

completion of dam work.

y Construction of 116 m height (above the sea bed level) concrete gravity dam 271 m

long at top including 117.5 m long gated orifice type spillway.

y Construction of 64 m X 167.5 m performed plunge pool.





y Construction of 50 m deep 410 m long cut off wall below the dam foundation.

Lot SSL 2: Related to Civil works of Intake Structure, water conductor system, power house

and appurtenant works is being executed by measures L&T.

Lot SSL 3: Related to Hydro Mechanical works of the Project is being executed by M/s

ALOSTOM.

Lot SSL 4: Related to Surge Tunnels of the Project is being executed by M/s L&T .

Lot SSL 5:Related to Hydro Mechanical works of the Project is being executed by M/s

Texmaco.

Expected time of completion for Lot SSL-1 is December, 2013 and for the Project as a whole

is August 2014.

1.3 Project Layout

Subansiri Lower HE Project envisages utilization of 91 m of maximum gross head by

construction of 127 m high concrete gravity dam above deepest foundation level.Water is

led to powerhouse through 8 nos. 9.5 m diameter headrace tunnel. The powerhouse is

proposed to house 8 units of 2 50 MW each. The design energy works out to be 7421.59 MU

2. DESCRIPTION OF PROJECT COMPONENTS

2.1 Dam

Considering the topographical details and provision of low - level orifice type spillway, a 116

m high concrete gravity dam is planned above river bed level . the deepest foundation level

is at E1 83 m and top of the dam at E1 210 m. The length of the dam at top will be 271 m

including 175.5 m for spillway. For construction of the dam, river Subansiri shall be diverted

through five numbers horse shoe shaped diversion tunnels each of 9.5 m finished diameter

provided on left bank .For river diversion proposed upstream and downstream cofferdams

shall be of 31 m and 21 m height respectively.

2.2 Water conductor system

2.2.1 HRT intake structure





The HRT intake structure are located on right bank of the river to suit topography. This

comprise of 8 numbers of vertical intakes , one of each head race tunnel .The intake

structure of four intakes have been clubbed and hence two sets of i ntake structures have

been plant .

2.2.2 Head race tunnels

Eight no. of 9.5 m finished diameter horseshoe shaped Head Race Tunnel(HRT) are

envisaged to convey water from intake to eight pressure shaft and then to power house .

2.2.3 Surge Tunnels

Eight nos. Of diameter 9.5 circular / horse shoe shaped having varying length of 402 m to

485 m

2.2.4 Pressure shaft

Eight nos. Of pressure shaft feeding individual unit has been proposed . Pressure shaft have

horizontal limbs of size 9.5 m (horseshoe ) /8 m (circular) at E1 155.75 m.The steel lined

bottom horizontal limb of pressure shaft at E1 98 m has size 8 m (circular). Top and bottom

horizontal limbs are proposed to be joined by a vertical steel lined 8 m diameter circular

shaft.

2.3 Power House

Surface power house having overall size 285 m X 61 m X 64 m has been proposed .MIV value

is proposed to be located at EL 88m on the u/s side of machine hall. Controlled block

,transformers as well as GIS have been located on various floors between mac hine hall and

draft tube gates. The transmission conductor shall take off from powers over roof of GIS

floor . As such no separate Switch yard area has been proposed .

2.4 Tail Race Tunnel

A tail race channel having width of 206 m has been provided to lead water from power

house to river.

3.0 SALIENT FEATURES OF THE PROJECT

The salient features of the project are enclosed.

4.0 Location and status of access roads of sites project:

Subansiri Lower HE project (2000 MW) is loca ted in Dhemaji and Lower Subansisi districts

in Assam and Arunachal Pradesh. The left bank of Dam will in the state of Assam and right





bank of the Dam,Power House, Headrace Tunnel and tailrace channel etc. will be in the

state of Arunachal Pradesh. The projects township and Headquarter are located at

gerukamukh ,district :dhemaji,state:Assam which is situated at a distance of 16 kms from

gogamukh a road side town on national Highway-NH 52. Gogamukh is about 455 kms fromGuwahati and 40 km from north Lakhimpur a district headquarter which is about 415 km

from Guwahati. The nearest meter gauge railhead is Gogamukh and broad gauge railhead

nawgaon situated in between north Lakhimpur & Guwahati on NH -52 which is about 350

kms away from project headquarter. Presently the Airports are located at Guwahati and

lilabari (North Lakhimpur), which are well accessible to various other airports located in

India. In addition to above helicopter services are available from Guwahati to Naharlagun

(Arunanchal Pradesh),which is situated about 100 km away from project headquarter. The

access from Gogamukh to project headquarter is all weather double lane road.

Awards and Recognitions won

During the period under review NHPC has won many accolades in the form of awards as mentioned below:

y Special Jury Award at the Asia Pacific Global HRM Summit for ³Innovative HRPractices´.

y BML Munjal Award instituted by the Hero Group for ³Innovative Learning &Development Practices´.

y Amity Award for CSR.y SCOPE Excellence Award for CSR.y 2nd Prize at the WIPS (Women in Public Sector) Meet in the category of Best

Performing Enterprise for Women Empowerment Initiative

Projects commissioned

NHPC has added 1420 MW during the period under review by commissioning threeprojects.

The 390 MW Dul Hasti Power Station was declared under commercial operation witheffect from 7.4.2007. The Power Station was dedicated to the Nation on 26.4.2008by Dr. Manmohan Singh, Hon¶ble Prime Minister of India. The beneficiaries of thePower Station are Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Uttarakhand,Rajasthan, Delhi and Union Territory of Chandigarh.

The 510 MW Teesta Stage-V Project in Sikkim has been put under commercialoperation during February/ March 2008. The beneficiaries of the Projec t are DVC,





Bihar, Orissa, Jharkand, West Bengal and Sikkim. Power from this Power Station isbeing supplied to the beneficiaries @ Rs. 1.62/unit.

The 520 MW Omkareshwar Project (under joint venture with Govt. of Madhya

Pradesh) was commissioned during November 2007 against scheduled date of Feb.¶08.

Projects under Construction

1. Sewa ±II H.E. Project (120 MW), J&K

Complete Dam excavation and 86 % concreting of Dam is over.

In HRT, 9370 m (92.92%) excavation has been completed.

Excavation of Surge Shaft and Powerhouse has been completed and

80.30% concreting has been completed in Power House. Excavation and concreting of Pressure Shafts is in progress.

2. Teesta Low Dam H.E. Project Stage-III (132MW), West Bengal

In Barrage Bays 3 to 7 and Power House, excavation is over and about

97.25% and 62.45% concreting has been done respectively.

Intake Structure excavation is almost over and 97.60% concreting has been

completed.

About 91.10% excavation of TRC has been completed.

Draft Tubes for all the 4 units have been erected. Project suffered major setback due to unprecedented high intensity flash

floods breaching the cofferdams in July¶07, causing flooding of all work areas.

Again in Sept.¶07, floods re -occurred. However, works resumed on all fronts

within a minimum time.

3. Subansiri (Lower) H.E. Project (2000 MW), Arunachal Pradesh

Power House excavation was completed on 28 th August 2007. Diversion Tunnels completed.

Construction of 1st

Stage Coffer Dam and subsequently river diversion of river Subansiri was successfully achieved in December 2007.

Excavation of Dam foundation started in January, 2008.

4. Uri ±II H.E. Project (240MW), J&K

Concreting up to River Bed Level in Dam is completed.

In Open Channel & Desilting Chamber 88.70% excavation has beencompleted.





Head Race Tunnel day lighted & 71.70% of Tail Race Tunnel headingexcavation completed.

61.20% of Power House excavation completed

Functional Units

Human Resource Deaprtment

When is training required at NHPC?

y In initial days of starting a job

y At the time of technological updation

y When the employee is about to be promoted

y When effectiveness and efficiency of an employee is low

y When an employee is transferred to another department

y When the top level management sees any changes in designation

y At the time of mergers and acquisitions

y When the company wants to go global

Why is Training required?

y For personality development

y To train for finer skills and technicalities

y For knowledge updation





y To familiarize the employees with the company¶s working culture

y For dealing with different people in different manners

y To make employees more effective and efficient which will

ultimately increase productivityy For optimum utilization of resources

y For creativity enhancement

y For caliber recognition

y For creating awareness about merits and demerits of thecompany

y To train the employees on their strength and avoid their drawbacks through removal

Training Philosophy of NHPC

The basic philosophy is to use training as an effective tool for performanceimprovement of the individual,the team and the organization and intransforming NHPC into a learning organization

Objectives

y Make learning one of the fundamental values of the corporation

y Ensure value addition thr ough training to the overall business

pr ocess

y Institutionalize learning o ppor tunities that su pplement work

experience

y Integrate organizational and individual develo pmental needs

y Pr ovide linkage between the diff erent functionaries of training

activity y Pr ovide linkage of training activity with overall Human R esour ce

function

y Make per formance impr ovement in ever y sphere of work

Classification of training needs









y Training needs would be classified as essential anddesirable along two time frames of short term andlong term.

The identified needs would be prioritized in the following manner andwould be addressed accordingly

y Priority A Essential short-term

y Priority B Desirable short-term

y Priority C Essential long-term

y Priority D Desirable long-term

Training needs identif ication in case of executives would be done by the

executive concerned in consultation with his/her repor ting off icer in the training needs form.

Training needs identif ication in case of non-executives would be done by their

repor ting off icer in the training needs.

The departmental training co-ordinator shall trigger the TNA exercisefrom 1st September,every second year,with the distribution of trainingneed forms.He/she would consolidate and submit the filled-up trainingneed forms of executives and Non-executives,of his/her departmentconcerned to be respective training center by 30 th October.He shall play

a proactive and dynamic role by interacting with maximum number of employees at all levels and shall keep data available of the latesttraining courses available,list of training employees etc.

A department-wise analysis would be done by training centre of unit andwith heads of department for evolving the yearly training calendar for thenext two years,by 15

thNovember in consultation with HRD,Centre for

Excellence

The training calendars so prepared,shall be sebt for approval of HRD,center for Excellence by 30 th November.

The heads of HR of regions and HRD,C.O. shall meet before 15th December for sharing training calendars of the projects/stations of the





respective region and for providing inputs for the training calendar of HRD,Centre for Excellence

Training calendar of NHPC

The heads of training from the projects would meet in the regional headquarter during the 1st week of January to share training calendars.Theywould also provide inputs to RHQ/HRD regarding programmes to beassigned to RHQ/HRD from out of training needs identified by theemployees of their respective projects.

Each training Center/HRD,Centre for Excellence

shall bring out,by 15

th

February every year,a Training Calendar,specifying the schedules of theprogrammes,both planned interventions and need basedinterventions,planned to be conducted by it during the following trainingyear

Each training Centre shall circulate on quarterly basis calendar of programmes scheduled for the next three months to all HODs andother training agencies.

Copies of training calendar of one project would be circulated to other training centres and HRD,Center for Excellence by 15th March,for need-based utilization.

Nomination System

y To ensure that employees are nominated to training in areas whichare relevant to their duties or which have been identified as their developmental needs.

y To ensure that opportunities to attend training programmes aremade available to all employees to achieve the training target of





average of seven mandays of training in a training year for eachemployee.

Categorization of programmes

On the basis of duration,training programmes would becategorized as follows

y Short-duration up to three days

y Medium-duration four days to ten days

y Long-duration above ten days training

Limit on the number of programmes

An employee may be nominated for training programmeswith the limits stipulated herein

y Short-duration Maximum of three in a year

y Medium-duration Maximum of two in a year

y

Long-duration Once in two years

Why evaluation is important?

y For further improvisation of training programmes

y To get the employee maximum benefit

y To make sure that the faculty which has not beeneffective shall not be repeated

y To employee¶s opinions

y For the growth of company

y To make the employees feel that their opinionsmatter.

Methods of evaluation





y Through individual feedback

y Group discussion

y Through oral test and MCQ

y Giving the employees a real life situation to see howdo they workout things on the basis of newknowledge gained

y By polling(voting)

y By judging their performance in the due course of time after the programme has been conducted

y By raving comments or suggestions of employees ina ballot box soon after the training programme isover.

Training Evaluation

Training Evaluation would be done at three leves:

y Pre-training evaluation

y Programme feedback

y Impact assessment

Pre training Evaluation - In this case the HRD/HR wing shall review theprogramme design,content etc.In the light of feedback obtained from asample of participants.

Programme Evaluation - The training center shall seek participantFeedback at the end of the training programme in the programmefeedback form

Impact assessment - The information would be collected through theimpact assessment form(IAF) after the completion of six months

programme.

Finance

y The total PIB cleared cost is 6285.33cr,out of which Rs 3587.33 Cr has

been incurred till Dec09 which is 57% of total.





y Rs. 69.38 Cr. Has been given to arunanchal Pradesh forest department

for compensatory afforestation over 6400 ha degraded forest land.

y Assam state forest department has been given Rs. 11.80 Cr. For

compensatory afforestation over 1600 ha degraded forest land.

y Rs. 300 Cr. Has been deposited in the registry of honble supreme court

of india and Rs. 177.39 lacks has been deposited with assam state forest

department as NPV for the use of forest land.

y NHPC has also paid Rs.817.27 lakhs to Arunanchal Pradesh state f orest

department for implementation of catchment area treatment plan.

Financial improvement of NHPC in the year 2011

The company has achieved net profit after tax of Rs 791.05 crore during the

1st

quar ter of FY 2011-12 which is 47.19% higher than the net pr of it after tax of R s

537.42 cr ore earned during the corresponding period of the previous year .

R egistered Sales Turnover of Rs 1431.41 crore which is 40.37% higher than

the Sales Turnover of R s 1019.71 cr ore registered during the corresponding period of

the previous year .

Board of Directors in its 335th meeting held on 30.06.2011 recommended dividend of

R s 0.60 per share for the f inancial year 2010-11.

NHPC¶s O perating Power Stations generated 6284 Million Units (MUs) during the 1st quar ter of FY 2011-12 surpassing the µExcellent¶ MoU target of 5679 MUs by

10.7%. The generation of 6284 MUs achieved during 1st

quar ter of FY 2011-12

was 10.5% higher than the generation of 5689 MUs achieved during the 1st

quar ter of FY 2010-11.

During the current f inancial year till 9th

August 2011, NHPC¶s Power Stations have

generated 9451 MUs against the Excellent MOU target of 8996 MUs.

M/s Chena b Valley Power Pr ojects (Private) Limited´ has been incorporated on

13.06.2011 for develo pment of Pakal Dul, K ir u & Kwar pr ojects in J&K with an aggregate installed capacity of 2120 MW.

Memorandum of Understanding (MOU) signed with Orissa Hydr o Power Corporation

Limited (OHPC) and Government of Orissa for formation of a Joint Venture

Company with OHPC to develo p three Hydr oelectric Pr ojects, Sindol Stage I, II & III

in the Mahanadi river basin of Orissa with an aggregate capacity of 320 MW.

Memorandum of Understanding (MoU) signed with Russia¶s largest power generating

company JSC RusHydr o on 23.05.2011 for coo peration in the f ield of hydr o power

develo pment, renewa ble energy sour ces and other areas of power generation.





Envir onmental Clearance accorded by Ministr y of Envir onment and Forests (MOEF)

to Tawang Stage-I and Tawang Stage-II HE Pr ojects on 10.06.2011. Concurrence

meetings for Tawang-I and Tawang-II were held at CEA on 10.06.2011 and

30.06.2011 respectively.

FAC has recommended for appr oval the forest clearance pr o posal of Kotli bhel Stage-IA HE Pr oject for diversion of 258.737 ha forest land.

R iver has been successfully re-diver ted thr ough S pillway R adial Gates at 44 MW

Chutak H.E. Pr oject, Jammu & K ashmir .

R iver successfully re-diver ted over the dam spillway on 23.06.2011 at Chamera H.E.

Pr oject Stage-III (231MW), Himachal Pradesh.

After commissioning of R adial gates, Diversion tunnel gate was lowered and river

successfully re-diver ted thr ough spillway on 15.07.2011 at Uri H.E. Pr oject Stage-II

(240 MW), Jammu & K ashmir .

Tunnel Boring Machine has been commissioned and boring of HR T has been

commenced w.e.f. 13.05.2011 at K ishanganga H.E. Pr oject (330 MW), Jammu &K ashmir .

In Par bati-II Pr oject, Dam and Intake concreting (175000 cum cumulative) has been

achieved on 27.06.2011 with excellent MoU rating.

Public Hearing of Lok tak Downstream HEP has been conducted on 07.06.2011.

With the implementation of Finance and associated modules in the balance 23

locations of NHPC w.e.f. 01.04.2011, ER P has been o perationalized at all the

locations of NHPC, pr oviding standard pr ocesses in various functional areas acr oss

the organization.

We bcasting of events f r om NHPC Corporate off ice was launched on 04.04.2011. This would ena ble employees to view events live f r om all locations connected to NHPC

network .

Work of R enovation & Modernization of Varzob HE Pr oject in Ta jikistan is in

pr ogress as per schedule. Ma jor civil works have been completed in Mar ch 2011.

NHPC conf erred with the µGentle Giants Award¶ under Non Manuf acturing - Mini R atna categor y by Dalal Street Investment Journal on 21.04.2011.

NHPC ad judged as the ³To p Indian Company under the Power Sector´ at the Dun &

Bradstreet ± Rolta Corporate Awards 2010 on 26.04.2011 for its contri bution to the

Indian economy.

Financial performance during 2007-2008





* Registered a net profit (after tax) of Rs. 1,002.06 crore against the net profit (after tax) of Rs. 9,24.80 crore registered during the previous financial year.

* Achieved an all time high sales turnover of Rs. 2,311.47 crore as against Rs.1,962.76 crore achieved during the year 2006 -07

* Poised to declare an all time high dividend for the year 2007 -08. An interimdividend of Rs. 100 crore for the year 2007-08 has already been paid to Governmentof India.

* Better business management coupled with prudent financial policies like efficientsales realization, better grid management, efficient treasury management systemsetc. have resulted in sound financial position which made the Company self reliantfor the resources generation for ambitious capacity addition program in XI and XIIFive year plans.

* No budgetary support from Government during the year 2007 -08.

* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating equivalentto Sovereign rating for external borrowings from reputed international agency.

* Signed financing agreements with PFC aggregating approximately Rs. 4,000crore at most competitive terms.

* Necessary financial closure of all ongoing projects in place.

*Likely to come up with IPO in August 2008.







Since its inception in 1975, NHPC has gr own to become one of the largest organisation in the

f ield of hydr o power develo pment in the countr y. With its present capa bilities, NHPC can

under take all activities f r om concept to commissioning of Hydr oelectric Pr ojects.

DAM COMPLEX

Role of dam complex:

y To get the dam work executed as per technical specif ication and as per drawings issued by design division of NHPC.

y To measure and record execution quar ties by the contractor and to

pr ocess the bill submitted by the contractor .

y To sor t out the design related issue with the hel p of design div ision.

y To asses the material requirements and convey the same timely to pr ocurement division.

y To asses f inancial requirements for the works and convey the same to

f inance wing for the arrangement of funds.

y To sor t out contractual issues with the hel p of contract division.

y To see whether the contractor is meeting statutor y requirements like following la bour laws etc.





SWOT Analysis of NHPC

A scan of the internal and external environment is an important part of the strategicplanning process. Environmental factors internal to the firm usually can be classifiedas strengths (S) or weaknesses (W), and those external to the firm can be classifiedas opportunities (O) or threats (T). Such an analysis of the strategic environment isreferred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm'sresources and capabilities to the competitive environment in which it operates. Assuch, it is instrumental in strategy formulation and selection. The fo llowing diagram

shows how a SWOT analysis fits into an environmental scan :

SWOT Analysis Framework

Environmental Scan

/ \

Internal Analysis External Analysis

/ \ / \

Strengths Weaknesses Opportunities Threats

|

SWOT Matrix

Strengths

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

y patents





y strong brand namesy good reputation among customersy cost advantages from proprietary know-howy exclusive access to high grade natural resourcesy favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, eachof the following may be considered weaknesses:

y lack of patent protectiony a weak brand namey poor reputation among customersy high cost structurey lack of access to the best natural resourcesy lack of access to key distribution channels

In some cases, a weakness may be the flip side of a strength. Take the case inwhich a firm has a large amount of manufacturing capacity. While this capacity maybe considered a strength that competitors do not share, it also may be a considereda weakness if the large investment in manufacturing capacity prevents the firm from

reacting quickly to changes in the strategic environment .

Opportunities

The external environmental analysis may reveal certain new opportunities for profitand growth. Some examples of such opportunities include:

y an unfulfilled customer needy arrival of new technologiesy loosening of regulationsy removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Someexamples of such threats include:





y shifts in consumer tastes away from the firm's productsy emergence of substitute productsy new regulationsy increased trade barriers

Strength of NHPC

Crisil has revised its outlook on the borrowing programmes of National HydroelectricPower Corporation Ltd (NHPC) to µNegative¶ from µStable¶. The change in outlook isdriven by the increased level of NHPC¶s capacity expansion plans, its aggressivefunding of these projects, and the resultant impact on its credit profile. NHPC¶sborrowing programmes include bond issues of Rs 1,000 crore and Rs 500 crore.NHPC has an installed capacity of 3145 mw.

Crisil believes that NHPC¶s capital structure will deteriorate owing to the pl anned

capacity additions over the medium to long term, and improve thereafter as theseprojects come on stream. Also, NHPC¶s liquidity is constrained by the weak creditprofile of its customers, primarily the state electricity boards (SEBs). Crisil believe sthat although the current stringent norms help central power sector utilities collectpayments from the respective state funds parked with the RBI, thus minimising therisk, the SEBs¶ repayment behaviour will remain a monitorable .

NHPC has a strong operating efficiency, with a high capacity index factor (CIF) of 98% (in 2005-06). The company recovers all its fixed costs at a level of 90 % CIF;the high actual CIF therefore ensures high recovery and stable profitability over themedium term. NHPC¶s cash flows are expected to remain strong, given the negligiblecosts in generating hydroelectric power and the stable profitability provided by a

regulated tariff environment. Crisil expects NHPC¶s strong project management skillsto enable it to complete its capacity addition projects on time.

Opportunities for NHPC

NHPC has well established talent management systems in place to ensure that thecompany delivers on its promise of providing exponential growth and challenge to allemployees

y Performance anagement - NHPC has a standardised and formalised

performance management system. A KPA based system is designed toassess functional, managerial and potential competence in an objective andtransparent manner. The system is designed to accomplish the overallorganisational vision and mission by linking individual performance to thecompany¶s objectives and strike a balance between performance andcompetence to help individuals excel in their fields.





y Career Paths - A formal career path and development process exists in

NHPC. All career paths have an underlying management structure.Promotions within each career path are aligned with the needs of theorganisation. Succession criteria for leadership positions in each career pathhave been identified, which provide basi s for job rotation. Anyone joining theorganisation can choose to pursue a business, function or staff career pathand will be put through specific training interventions and job rotation path

towards becoming a business, function or staff head .

y Leadership Development - Potential employees are assessed for

leadership competence and are groomed to occupy leadership positions inthe company. We have a system that enables measurement of leadershipeffectiveness, gap identification against an identifi ed set of leadershipcompetence. Individual development plans are made based on the gapsidentified to ensure that the process of development and growth is

meaningful.

Threat for NHPC

From a hydro-engineering point of view, the immense potential of hydrop ower inIndia is yet to be harnessed. For an engineer, it¶s mandatory to build a dam for producing electricity. One of my hydro-engineer colleagues in India¶s governmentargues, ³the hydro power is the best option in the Indian context considering thelarge volume of water going to waste. Besides, hydro-power is better than thermalpower as the former is cheaper, can be generated and utilised as per the need

without any overhead costs for idle runs.´ ³Also the thermal units take a longer timeto be restarted,´ adds the Engineer who is preparing mega hydro -power projects inOrissa. The Engineer tries to convince me that ³there are no flaws in hydro power except building a reservoir, and sometimes commissioning of the projects takesmore time. The government¶s last resort is run of the river (RoR) projects which arethe small ones with less producing capacity. This is explored when one does nothave the other option.´

For anti-dam activists hydro-power is just an option, not mandatory. They view anyestimate on hydropower - the very fact of putting a number with an electricity unit -as flawed and fraudulent. From this perspective, water -the-resource, has other utilities and needs more significant than than generating electricity. Anti -dam activists

point out the centralized character of large hydro power projects, with high costs,potential under performance, violations and inequity as the basic flaws .





Conclusion

The trust in government and its bureaucracy has been eroding in India therebyleaving more avenues for contested domains. It has been very difficult transformingthe government intentions to produce electricity from the large water infrastructuresafter the Sardar Sorvar Project debacle in the early 1990¶s. The small hydro projectsare being cautiously implemented by the governments. However in some cases theadverse socio-economic and environmental impacts of large dams can be mitigatedthrough informed decision-making, transparency and engagement of all

stakeholders. In all probability, the advantages and disadvantages of hydro -power structures, large or small, have to be discussed with people transparently.

The present social and environmental assessments of the hydro projects are flawedfrom many angles which triggers real and imaginary conflicts of interest. To settle thePeople¶s concern, after two years of debate the Indian Cabinet has recently passedthe National Policy on Rehabilitation and Resettlem ent, 2007. In particular, there hasto be clear recognition in all decision making related to dams that a balance needs tofound between the needs for use of renewable energy, and the minimization of possible harmful effects on the environment - especially mountain environmentswhere most of the hydro-potential resides. Mountain regions have particular potentialfor use and production of renewable energy, not only hydro, but also biomass, solar,

geothermal or wind; clearly, the adverse environmental effects on fragile mountainecosystems need to be carefully assessed and prevented before developments takeplace. Also, possible social issues between upstream (often poor mountaincommunities) and downstream communities (often the main beneficiaries of energyproduction) need to be addressed.




BIBLIOGRAPHY:

y www.google.co.in

y NHPC off ice

y www.nh pcindia.com

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