Ntpc New Profile

7/27/2019 Ntpc New Profile

1/60

Acharya Academy Of Management Studies Page 1

CHAPTER 1

INTRODUCTION

CONCEPT OF ORGANIZATION

Organization is the process of:

Identifying and grouping the work to be performed. Defining and delegating responsibility and authority. Establishing the relationship for the purpose of enabling people to work

PRINCIPLES OF ORGANIZATION

Principles means the theoretical basis on which something is built up. The theoretical

basis is formulated from fundamental truth. Some of the important principles to be followed for

developing round and efficient organizations are:

Principle of unity of objective Principle of specification Principle of co-ordination Principle of unity of command Principle of span of control Principle of exception Principle of flexibility Principle of simplicity Principle of communication Principle of efficiency

REQUSITIES OF A GOOD ORGANIZATION

The objective are to be clear, candid and well defined and the organization must have acapacity to achieve it.

All activities therein must be implemented easily, effectively and properly coordinated. The communication system within the organization must be effective. The span of control at all levels must be reasonable. There should be provisions for further expansion, whenever needed. All activities and functions should follow defined procedures. The organization must be such that it promotes the morality of employees. There should be a proper diversion of authority and responsibility.


2/60


IMPORTANCE OF AN ORGANIZATION

Significance of the organization in any institution may be discussed as

It ensures optimum use of human resources: it establishes person with below: differentinterests skills, knowledge and viewpoints.

It simulates creativity: a sound and well-conceived organization structure is the source ofcreativity thinking and initiation of new ideas.

Use of improved technology: a good organization provides for optimum Co-ordination in the enterprise: in a good organization, the different Executive development: the pattern of an organization structure has use of technological

improvements. Departments perform their functions in a closely related manner strong

influence on the development of executives.

It ensures co-operations among workers: a good organization promotes mutual goodwill andcooperation among workers also.

PURPOSE OF STUDY

The purpose of the study is to familiarize with the industry and attain a firsthand

experience of the functioning of the organization. It provides a chance to interact with the different

department and authorities in the organization, and also enable to know how the theory learned are

practically applied in an organization.

OBJECTIVES OF THE STUDY

To get an insight into organization structure To know the corporate profile structure & performance. To learn & study the functioning of an organization in the field. To know the function & activities of the employees.

SCOPE OF THE STUDY

This report mainly focuses its view on companys profile & different departments such as

manufacturing, finance, marketing &human resources. Since the scope is very vast, future studies

can be undertaken in the following areas;

1. To find out the financial performance of the company.2. Consumer perceptions about the organization etc.


3/60


4/60


Performance

The capital-intensive power industry suffered tremendous losses due to the economic

recession. Industry analysts have revealed that there was a staggering 50% decline in the

number, value and capacity of new projects between the beginning of the credit crunch in Q3

2012 and Q3 2013. There is a silver lining though, as analysts believe figures for Q3 2013have shown signs of positive growth.

Going forward, it is believed the hotspots of activity will primarily be in India, China and the

UK. As well as new builds, there are also significant opportunities for synergies across the

global energy supply chain with industry and governments keen to invest in and adopt new

technologies. In order to best capitalize on these new opportunities, major contractors and

companies across the energy supply chain have begun to work together more closely, to

streamline their operating and procurement procedures.

India has the fifth largest electricity generation capacity in the world. The total installed

capacity of India is ~150,000 MW, of which majority of generation, transmission anddistribution capabilities with either public sector companies or with State Electricity Boards

(SEBs). Only ~15% capacity is from the private sector, though this is now beginning to

increase. Market research suggests ~65% of Indias total installed capacity is contributed by

thermal power with the Western and Southern regions each accounting for ~30%. Due to

unbalanced growth and rural-urban disparity, only ~40% of rural household have access to

electricity versus ~80% of urban households. Key players include National Thermal Power

Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric

Power Corporation Limited, Power Grid Corporation of India and Tata Power.

Growth potential

The Indian power sector is experiencing a large demand-supply gap. At present, the energy

shortage in the India is ~10% but there are States where the energy shortage is as high as

25%. To combat this, over 80,000 MW of new generation capacity is planned in the next five

years. A corresponding investment is required in Transmission and Distribution networks.

A massive capital investment is further required over the subsequent years with the countrys

power requisite expected to touch 800,000 MW by 2031-32.

Future prospects

Due to the influx of foreign companies, and the ramping up of operations by domestic

companies, the industry is experiencing a hiring spike. New graduates would be advised to

seek an initial position in one of the larger companies as there will be specific training

courses and more opportunities for someone starting out. Given the breadth of the power

industry, it is possible to work with a range of different technologies and disciplines

depending upon the preferences.

All of the large power-generation companies are looking for graduates and apprentices in a

range of disciplines. Degrees in engineering (mechanical, electrical or civil), science

(physics, chemistry or mathematics) and even IT or business studies are required. In addition,

work experience is a big advantage.


5/60


INTERNATIONAL ENERGY AGENCY:-

The International Energy Agency (IEA), an autonomous agency, was established in

November 1974. Its mandate is two-fold: to promote energy security amongst its member

countries through collective response to physical disruptions in oil supply and to advise

member countries on sound energy policy.The IEA carries out a comprehensive programs of energy co-operation among 28 advanced

economies, each of which is obliged to hold oil stocks equivalent to 90 days of its net

imports.

The Agency aims to:

Secure member countries access to reliable and ample supplies of all forms ofenergy; in particular, through maintaining effective emergency response capabilities

in case of oil supply disruptions.

Promote sustainable energy policies that spur economic growth and environmentalprotection in a global context particularly in terms of reducing greenhouse-gas

emissions that contribute to climate change. Improve transparency of international markets through collection and analysis of

energy data.

Support global collaboration on energy technology to secure future energy suppliesand mitigate their environmental impact, including through improved energy

efficiency and development and deployment of low-carbon technologies.

Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organization and

other stakeholders.

IEA member countries:

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal


6/60


Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States The European Commission also participates in the work of the IEA.

OVERVIEW OF INDIAS POWER SECTOR

India's power market is the fifth largest in the world. The power sector is high on India's

priority as it offers tremendous potential for investing companies based on the sheer size of

the market and the returns available on investment capital.

Contribution from different sources of power generation

Almost 55 per cent of this capacity is based on coal, about 10 per cent on gas, 26 per cent on

hydro, approximately 5 per cent on renewable sources, about 3 per cent on nuclear and 1 per

cent on diesel. In the past five years, there has been a much greater emphasis on transmission

and distribution reforms.

The government aims to provide "power to all" by 2015. To achieve that promise, it will have

to add as much as 1,00,000 MW of generation capacity, cut AT&C losses substantially to

below 20 per cent, rationalize tariffs and ensure that average revenue realization is greater

than the cost of production. It will have to continue to push the process of reform and

restructuring and ensure greater private participation, in every segment. In the past few years,

there has been considerable growth in power plants based on renewable sources of energy.

The Plant Load Factor (PLF) of generating plants has improved consistently over the last 10

years. The share of thermal power as a proportion of total power generated has decreased

from 71 per cent to 66.3 per cent in the last decade. The share of hydro has increased to 26

per cent from 25.7 per cent.

Of the fossil fuel supplies, there is delivery constraint with respect to gas. A number of gasplants today are running at sub-optimal plant load factor (PLF) levels due to shortages. The


7/60


government has decided not to embark on new projects that rely on gas. It is feared that

supply shortages can disturb the capacity addition plans, reduce PLFs, as the rising crude

prices have led to firmer naphtha and natural gas prices. Emerging environmental concerns

have led to an increasing interest in renewable . Captive power plants (CPPs) also make a

major contribution, which is more than one-fifth of the total installed capacity. In the last

three years, captive capacity has grown at an average of 1,600 MW per year. They have topay huge prices as they have to source power from the grid during low frequency periods.

During this time the CPP power comes in handy at a much lower tariff.

The reform process in the power sector continues. Thirteen states have unbundled SEBs into

separate entities for transmission, distribution and generation. Two states have privatized

distribution. Regulatory authorities have been set up in 24 states. These authorities are

applying commercial principles to tariff setting, monitoring the performance of state utilities

and paying attention to areas such as demand side management and grid discipline.

FUTURE PLANS OF CAPACITY ADDITION

Plan for Capacity Addition during XIIth Five Year Plan (2012-2017):-

The power generation capacity added during the last five years is a lowly 21,280 Mw, which

is about half the original target of 41,110 MW set for the Tenth Plan. This is also 2000 Mw

less than the 23,250 Mw capacity addition projected by the government in last few days of

XIth five year plan.

An ambitious target of 78,577 Mw has been set by the government for the twelfth plan

period. Of this, the hydropowers share would be 16,553 MW, the thermal power would

constitute 58,644 MW and the nuclear powers share would be 3,380 MW. Capacity addition

plan from different sources during XIIth five year plan (2012-2017).

Plan for capacity addition from various sources during 12th

year Plan


8/60


Policy for Additional Capacity Generation

Following is the policy for future power generation under the National Electricity Plan:

Inadequacy of generation has characterized power sector operation in India. To provideavailability of over 1000 units of per capita electricity by year 2012 it had been estimated that

need based capacity addition of more than 1,00,000 MW would be required during the period

2002-12. Government of India has initiated several reform measures to create a favourable

environment for addition of new generating capacity in the country. The Electricity Act 2003

has put in place a highly liberal framework for generation. There is no requirement of

licensing for generation. The requirement of techno-economic clearance of CEA for thermal

generation project is no longer there. For hydroelectric generation also, the limit of capital

expenditure, above which concurrence of CEA is required, would be raised suitably from the

present level. Captive generation has been freed from all controls.

In order to fully meet both energy and peak demand by 2012, there is a need to createadequate reserve capacity margin. In addition to enhancing the overall availability of installed

capacity to 85per cent, a spinning reserve of at least 5per cent, at national level, would need

to be created to ensure grid security and quality and reliability of power supply.

Non-conventional Energy Generation

The Ministry of Non-conventional Energy Sources is promoting development of small/mini

hydro power projects. The potential of generation of power from small and mini hydel

projects is estimated to be about 10,000 MW in the country.

Feasible potential of non-conventional energy resources, mainly small hydro, wind and

biomass would also need to be exploited fully to create additional power generation capacity.

With a view to increase the overall share of non-conventional energy sources in the electricity

mix, efforts will be made to encourage private sector participation through suitable

promotional measures.

Hydro Electricity Generation

Hydroelectricity is a clean and renewable source of energy. Maximum emphasis would belaid on the full development of the feasible hydro potential in the country. The 50,000 MW

hydro initiatives have been already launched and are being vigorously pursued with DPRs for

projects of 33,000 MW capacity already under preparation. Harnessing hydro potential

speedily will also facilitate economic development of States, particularly North-Eastern

States, Sikkim, Uttaranchal, Himachal Pradesh and J&K, since a

large proportion of our hydro power potential is located in these States. The States with hydro

potential need to focus on the full development of these potentials at the earliest.

Hydel projects call for comparatively larger capital investment. Therefore, debt financing of

longer tenure would need to be made available for hydro projects. Central Government is

committed to policies that ensure financing of viable hydro projects. State Governments need


9/60


to review procedures for land acquisition, and other approvals/clearances for speedy

implementation of hydroelectric projects.

The Central Government will support the State Governments for expeditious development of

their hydroelectric projects by offering services of Central Public Sector Undertakings like

National Hydroelectric Power Corporation (NHPC).

Proper implementation of National Policy on Rehabilitation and Resettlement (R&R) would

be essential in this regard so as to ensure that the concerns of project-affected families are

addressed adequately.

Adequate safeguards for environmental protection with suitable mechanism for monitoring of

implementation of Environmental Action Plan and R&R Schemes will be put in place.

Small Hydropower Plants

The Electricity Act 2003 is the catalyzing and facilitating factor for the Power revolution in

India. The concern that no households be left out from being electrified, is being aptly

addressed by the Union and state Governments. Impetus is being given to Rural

Electrification. In order to achieve this objective, synergy is to be evolved where distributed

Power Generation supplements (or makes up for the limitation) of electric supply through

grid. Besides this mission, initiatives for environmental conservation are propelling utilities

to generate more of Green Power Decentralised Power Generation and Distribution has the

power to adequately make up for the limitation of the Electric supply through Grid, and is

considered a potential means to provide Power to all by 2012 DPG technologies such as

Small Hydro Power help in producing power at the point of consumption.

In India, small hydro schemes are further classified by the Central Electric Authority as

follows:

Type Station Capacity Unit rating

Micro Upto 100 KW Upto 100 KW

Mini 101 KW to 2000 KW 101 KW to 1000 KW

Small 2001 KW to 25000 KW 1001 KW to 5000 KW

Thermal Generation

Even with full development of the feasible hydro potential in the country, coal would

necessarily continue to remain the primary fuel for meeting future electricity demand.

Imported coal based thermal power stations, particularly at coastal locations, would be

encouraged based on their economic viability. Use of low ash content coal would also help in

reducing the problem of fly ash emissions.

Significant Lignite resources in the country are located in Tamil Nadu, Gujarat and Rajasthan

and these should be increasingly utilized for power generation. Lignite mining technology

needs to be improved to reduce costs.


10/60


Use of gas as a fuel for power generation would depend upon its availability at reasonable

prices. Natural gas is being used in Gas Turbine /Combined Cycle Gas Turbine (GT/CCGT)

stations, which currently accounts for about 10 per cent of total capacity. Power sector

consumes about 40per cent of the total gas in the country. New power generation capacity

could come up based on indigenous gas findings, which can emerge as a major source of

power generation if prices are reasonable. A national gas grid covering various parts of thecountry could facilitate development of such capacities.

Imported LNG based power plants are also a potential source of electricity and the pace of

their development would depend on their commercial viability. The existing power plants

using liquid fuels should shift to use of Natural Gas/LNG at the earliest to reduce the cost of

generation.

For thermal power, economics of generation and supply of electricity should be the basis for

choice of fuel from among the options available. It would be economical for new generating

stations to be located either near the fuel sources e.g. pithead locations or load centres.

Generating companies may enter into medium to long-term fuel supply agreements speciallywith respect to imported fuels for commercial viability and security of supply.

Nuclear Power

Nuclear power is an established source of energy to meet base load demand. Nuclear power

plants are being set up at locations away from coalmines. Share of nuclear power in the

overall capacity profile will need to be increased significantly. Economics of generation and

resultant tariff will be, among others, important considerations. Public sector investments to

create nuclear generation capacity will need to be stepped up. Private sector partnership

would also be facilitated to see that not only targets are achieved but exceeded.

Nuclear Power Capacity Addition Plan:

Nuclear power is seeing a renaissance. Power-starved India, which has the largest number of

reactors under construction, is at the forefront of this revival of interest in nuclear power.

India is building seven of the 30 reactors under construction around the world. This is likely

to increase significantly once the India-US agreement on nuclear cooperation is accepted by

the rest of the world. India has been commissioning nuclear reactors in record time of less

than five years. The capital cost per megawatt in the case of nuclear plant is Rs 50 million,

which is higher than the average cost of the thermal plants (Rs 40 million or less). However,with the fuel cost being much lower than the thermal plants, nuclear power becomes an

appealing option.

Captive Generation

The liberal provision in the Electricity Act, 2003 with respect to setting up of captive power

plant has been made with a view to not only securing reliable, quality and cost effective

power but also to facilitate creation of employment opportunities through speedy and

efficient growth of industry. The provision relating to captive power plants to be set up by

group of consumers is primarily aimed at enabling small and medium industries or other

consumers that may not individually be in a position to set up plant of optimal size in a costeffective manner.


11/60


It needs to be noted that efficient expansion of small and medium industries across the

country would lead to creation of enormous employment opportunities.

A large number of captive and standby generating stations in India have surplus capacity that

could be supplied to the grid continuously or during certain time periods. These plants offer a

sizeable and potentially competitive capacity that could be harnessed for meeting demand forpower. Under the Act, captive generators have access to licensees and would get access to

consumers who are allowed open access. Grid inter-connections for captive generators shall

be facilitated as per section 30 of the Act. This should be done on priority basis to enable

captive generation to become available as distributed generation along the grid. Towards this

end, nonconventional energy sources including co-generation could also play a role.

Appropriate commercial arrangements would need to be instituted between licensees and the

captive generators for harnessing of spare capacity energy from captive power plants. The

appropriate Regulatory Commission shall exercise regulatory oversight on such commercial

arrangements between captive generators and licensees and determine tariffs when a licensee

is the off-taker of power from captive plant.

Major Players:-

A J


12/60


CHAPTER 3

COMPANY PROFILE

INTRODUCTION:-

National Thermal Power Corporation (NTPC) has been accorded the status of

MAHARATNAby the Government of India with enhanced powers to expand its operations

in both domestic and global markets. This is recognition of the globally comparable stature,

strengths and potential of the Company.

Capitalizing upon its proven strengths and key strategic priorities, the Company is future-

ready with a new vision:

To be the worlds largest and best power producer, powering Indias growth.

The new vision is part of the new Corporate Plan developed by the Company for the period

up to the year 2032. Among the largest and best performing power generation companies in

the world, NTPC has already set up 32,194 MW capacity. By 2032, it plans to have total

capacity of 1,28,000 MW.

While the Company has ~ 20% market share of installed capacity in India, through its higher

capacity utilization levels compared to those of other power generating companies, it

produces ~ 30% of Indias total electricity generation.

On the operational front, the Company has successfully adopted the 90% plus PLF strategy

for coal based stations and demonstrated the same for the last three years. Thus, for the third

consecutive year, NTPC maintained PLF of above 90% during 2011-12, which is remarkable

in view of its large fleet size comprising 81 coal-based units with average unit age of ~ 19

years. The gas stations achieved best ever PLF of 78.38% against the previous years 67.01%.Sustained operational excellence of NTPCs earliest plants like Singrauli (commissioned in

1982), with a PLF of 92.83% and Korba (commissioned in 1983), with a PLF of 97.61%,

highlights the Companys proven operational and engineering capabilities.

With a market cap of over Rs. 1,60,000 crore, the Company has remained among the top five

Indian Companies in terms of market capitalization which underlines its high-value market

position.

The Companys total income increased by ~ 9% during 2011-12 to reach close to Rs. 50,000

crore mark (Rs. 49,233.9crore). It earned a profit of Rs. 8,728.2 crore, an increase of 6.42%

over the previous years profit. The Company has been given the highest possible creditratings by prestigious agencies. The Company has been realizing 100% payment of current

bills for sale of power for seven consecutive years. The Companys Customer Relationship

Management initiatives and innovative incentive schemes highlight its customer focus.

In line with the strategy of expanding its leadership position in the sector, the Company is

geared to reach 75,000 MW capacity by 2017 which means an aggressive annual capacity

addition target of > 6,000 MW. Currently 45 units aggregating to 17,340 MW are under

construction at 16 locations. A capacity of 7,105 MW is under bidding. Feasibility Reports

have been approved for a capacity of 8,447 MW, which will very soon go to the award stage.

Feasibility Reports are ready for 10,980 MW. Feasibility Reports are under preparation for ~

15,500 MW.


13/60


In order to achieve this quantum ramping up in capacity addition, The Company has created a

very focused project execution and monitoring system at the core of which is the newly built

world-class web-enabled Project Monitoring Centre (PMC), the first of its kind in the

country. The Company is more equipped and energized than ever before to execute its

ambitious capacity addition and growth plans with much sharper focus on on-the-ground

progress.

The Companys fuel security strategy is a judicious mix of domestic and international long -

term coal agreements/ contracts, purchase of coal from spot markets, developing captive coal

mines and acquiring stakes in mining companies.

For gas, The Company is exploring long-term agreements/contracts and opportunities for

participation in LNG value-chain. As the leader in introducing new technologies in the sector,

The Company has been investing in technology and innovation with focus on efficiency,

environment and economical generation of power .The Company has developed a long-term

technology roadmap. For the new coal based stations, the Company has adopted state-of-the

art super critical steam parameters which will result in efficiency gains and reduction in CO2emissions. We are close to commissioning the first super critical unit of the country at Sipat.

We plan to commission the first 800 MW ultra super critical operating station by Fiscal 2016.

The NTPC Energy Technology Research Alliance (NETRA) is focusing on technologies to

deal with climate change issues and will also provide a complete range of scientific services

to enable NTPC power stations to retain their technological and commercial edge.The

Company believes that nuclear power has a key role to play as part of a solution to issues

concerning energy availability and climate change. Hence nuclear power is an important

building block in NTPCs capacity growth strategy with a target of 2,000 MW nuclear

capacity by 2017. The Company has entered into a Memorandum of Agreement for a joint

venture with Nuclear Power Corporation of India Limited (NPCIL) for setting up nuclear

power projects and the joint venture company is going to be incorporated soon. In line with

its aspiration to become one of the leaders in green power, The Company is entering the

renewable energy space with capacity target of at least 1,000 MW by 2017. The main

components of the renewable portfolio will be solar and wind. NTPC Vidyut Vyapar Nigam

Limited (NVVN) has been designated as the Nodal Agency for the purchase of up to 1,000

MW of solar power under the National Solar Mission.

The Company has an outstanding team of power professionals with deep-rooted sense of

pride in serving the nation. In order to sustain the strong work ethic and professionalism, The

Company is taking a number of initiatives to further improve the entry level-talent-quality to

establish a strong talent pool. It is also taking steps to develop a leadership pipeline. TheCompany seeks to foster a winning culture of entrepreneurship through focus on an objective

and open performance management system, a well-conceived manpower deployment policy,

exposure to a variety of assignments etc.

In view of the quantum jump in the capacity growth targets of the Company and of the sector,

a very large pool of skilled manpower at all the levels needs to be developed urgently. Giving

major focus on skill development, The Company has been hiring high-caliber engineers

directly from the campuses of IITs and NITs and recruiting a large number of engineers

through a rigorous examination process. It is providing state-of-the art training to its

employees at all the levels.


14/60


In order to create a large base of technically skilled work force, the Company has been

adopting ITIs and setting up new ITIs with emphasis on relevant courses and quality of

training. Till now, the Company has adopted 18 ITIs and is setting up 8 new ITIs. The

Company will be taking many more such initiatives for skill development.

The sound system of checks and balances developed by The Company and applied by itthroughout the organization has matured into an exemplary corporate governance system

which is praised by the stakeholders. Implementation of Integrity Pact, adoption of a

comprehensive Enterprise Risk Management Framework and a well-defined Internal Control

Framework add to the transparency and robustness of the Companys business practices.

The Company has been taking concrete steps to fulfill its corporate social responsibility by

helping the physically challenged and other marginalized communities through setting up

Information and Communication Technology (ICT) Centres for the physically challenged at

many places, District Disability Rehabilitation Centre (DDRC) at NTPC-Tanda, DirectlyObservable Treatment (DOT) Centres to take care of tuberculosis patients in the vicinity of


15/60


its power stations, distributed generation projects in remote villages and providing safe

drinking water. Thus the Company has been Transforming lives of the people.

Above diagram shows the dynamism in share holding pattern of the course of

32 years which briefly shows the increase in participation of private individualsto be the part of NTPC by acquiring certain shares.


16/60



17/60


STATIONS Fuel Type Capacity(MW) Gen.(MU)Gross:-

STATIONS Fuel Type Capacity(MW)

Gen.(MU)GrossNorthern Region 5490 45515

Singrauli Coal 2000 16264

Rihand Coal 2000 16743Unchahar Coal 1050 8952Tanda Coal 440 3555

National Capital Region 4347 29285

Badarpur Coal 705 5108

Dadri Coal 1330 7829Anta Gas 413 3002

Auraiya Gas 652 4528Dadri Gas 817 5607

Faridabad Gas 430 3212Western Region 7653 62532

Korba Coal 2100 17955

Vindhyachal Coal 3260 27586Sipat Coal 1000 8175

Kawas Gas 645 4327Jhanor Gandhar Gas 648 4488

Eastern Region 7400 48974

Farakka Coal 1600 10239Kahalgaon Coal 2340 11314

Talcher - Kaniha Coal 3000 23759

Talcher - Thermal Coal 460 3662Southern Region 3950 32533Ramagundam Coal 2600 21595Simhadri Coal 1000 8521Rajiv Gandhi CCP Liquid Fuel 350 2418

Total 28840 218840

VISION:

To be the worlds largest and best power producer,powering Indias growth

CORE VALUES: (B-COMIT)

1. B-BUSINESS ETHICS2. C-CUSTOMER FOCUS3. O-ORGANIZATIONAL & PROFESSIONAL PRIDE4. M-MUTUAL RESPECT & TRUST5. I-INNOVATION & SPEED6. T-TOTAL QUALITY FOR EXCELLENCE


18/60


CORPORATE MISSION:

Develop and provide reliable power, related products and services at competitive

prices, integrating multiple energy sources with innovative and eco-friendly

technologies and contribute to society

CORPORATE OBJECTIVES

To realise the vision and mission, eight key corporate objectives have been identified.

These objectives would provide the link between the defined mission and the functional

strategies:

Business portfolio growth

To further consolidate NTPCs position as the leading thermal power generation company

in India and establish a presence in hydro power segment.

To broad base the generation mix by evaluating conventional and non-conventional sources

of energy to ensure long run competitiveness and mitigate fuel risks.

To diversify across the power value chain in India by considering backward and forward

integration into areas such as power trading, transmission, distribution, coal mining, coal

beneficiation, etc.

To develop a portfolio of generation assets in international markets.

To establish a strong services brand in the domestic and international markets.

Customer Focus

To foster a collaborative style of working with customers, growing to be a preferred brand

for supply of quality power.

To expand the relationship with existing customers by offering a bouquet of services in

addition to supply of power

e.g. trading, energy consulting, distribution consulting, management practices.

To expand the future customer portfolio through profitable diversification into downstream

businesses, inter alia retail distribution and direct supply.

To ensure rapid commercial decision making, using customer specific information, with

adequate concern for the interests of the customer.

Agile Corporation

To ensure effectiveness in business decisions and responsiveness to changes in the business

environment by:

- Adopting a portfolio approach to new business development.


19/60


- Continuous and co-ordinated assessment of the business environment to identify and

respond to opportunities and threats.

To develop a learning organisation having knowledge-based competitive edge in current

and future businesses.

To effectively leverage Information Technology to ensure speedy decision making across

the organisation.

Performance Leadership

To continuously improve on project execution time and cost in order to sustain long run

competitiveness in generation.

To operate & maintain NTPC stations at par with the best run utilities in the world with

respect to availability, reliability, efficiency, productivity and costs.

To effectively leverage Information Technology to drive process efficiencies.

- To aim for performance excellence in the diversification businesses.

- To embed quality in all systems and processes.

Human Resource Development

To enhance organisational performance by institutionalising an objective and open

performance management system.

To align individual and organisational needs and develop business leaders by implementing

a career development system.

To enhance commitment ofemployees by recognising and rewarding high performance.

To build and sustain a learning organisation of competent world-class professionals.

To institutionalise core values and create a culture of teambuilding, empowerment, equity,

innovation and openness which would motivate employees and enable achievement of

strategic objectives.

Financial Soundness

To maintain and improve the financial soundness of NTPC by prudent management of the

financial resources.

To continuously strive to reduce the cost of capital through prudent management of

deployed funds, leveraging opportunities in domestic and international financial markets.

To develop appropriate commercial policies and processes which would ensure

remunerative tariffs and minimise receivables.


20/60


To continuously strive for reduction in cost of power generation by improving operating

practices.

Sustainable Power Development

To contribute to sustainable power development by discharging corporate socialresponsibilities.

To lead the sectorin the areas of resettlement and rehabilitation and environment protection

including effective ash-utilisation, peripheral development and energy conservation practices.

To lead developmental efforts in the Indian power sector through efforts at policy advocacy,

assisting customers in reforms, disseminating best practices in the operations and

management of power plants etc.

Research and Development

To pioneer the adoption of reliable, efficient and cost effective technologies by carrying out

fundamental and applied research in alternate fuels and technologies.

To carry out research and development of breakthrough techniques in power plant

construction and operation that can lead to more efficient, reliable and environment friendly

operation of power plants in the country.

To disseminate the technologies to other players in the sector and in the long run ge nerating

revenue through proprietary.

Company Information:-

Registered Office

NTPC Bhawan, SCOPE Complex ,

7, Institutional Area, Lodi Road,

New Delhi110 003

Phone No. : 011-2436 0100

Fax No. : 011-2436 1018

Web site :www.ntpc.co.in

Subsidiaries Dena Bank

NTPC Electric Supply Company Ltd.

NTPC Hydro Ltd.

NTPC Vidyut Vyapar Nigam Ltd.

Pipavav Power Development Company Ltd.

Kanti Bijlee Utpadan Nigam Limited

Bhartiya Rail Bijlee Company Limited
http://www.ntpc.co.in/http://www.ntpc.co.in/http://www.ntpc.co.in/http://www.ntpc.co.in/


21/60


Registrar & Share Transfer Agent

Karvy Computershare Pvt. Ltd.

17-24, Vittal Rao Nagar

Madhapur State

Hyderabad500 081Phone No. : 040-2342 0815-28

Fax No. : 040-2342 0814

E- MailId :[email protected]

Shares listed at

National Stock Exchange of India Limited

Bombay Stock Exchange Limited

Depositories M/s Varma & Varma

National Securities Depository Limited

Central Depository Services (India) Limited

Company Secretary

A.K. Rastogi

Auditors

M/s Dass Gupta & Associates

M/s S.K. Mittal & Co.

M/s Varma & Varma

M/s Parakh & Co.

M/s B.C. Jain & Co.

M/s S.K. Mehta & Co.

Bankers

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Canara Bank

Central Bank of IndiaCiti Bank,
mailto:[email protected]:[email protected]:[email protected]:[email protected]


22/60


Dena Bank

Indian Overseas Bank

ICICI Bank Ltd.

Jammu & Kashmir Bank Ltd.

Oriental Bank of Commerce

Punjab National BankPunjab & Sind Bank

State Bank of Bikaner & Jaipur

State Bank of Mysore

State Bank of Hyderabad

State Bank of India

Madhapur State Bank of Patiala

State Bank of Travancore

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank.


23/60


CHAPTER 4

ORGANIZATION STRUCTURE

STRUCTURE:

Structure describes the hierarchy of authority and accountability in an organization these

relationships are frequently diagrammed in organizational charts. Most organizations use some mix

of structures- pyramidal, matrix or structured ones- to accomplish their goals. A structure is the

formalizing of relationships, roles and responsibilities in order to recognize and perform work.

The structure provides the frame work for relationship among different parts of the organization.

The structure sets out formal reporting relationship, mode of communication among members their

respective rules and regulations for carrying out different task.

Organization structure of NTPC:

The organization structure of NTPC starts with the chairman who is the decision maker of the

company under him there is a board which control the organization by separating entire

organization into number of departments there will be a managing director who controls all the

activities of the board the managing director will among the board members who is selected by the

board with the help of voting.

Under the managing director there are different directors who individually handle different

departments these directors control one or more departments based on the size of department and

capability director. Down the hierarchy after the director there will come general managers who isthe highest authority of individual departments each general manager handles the one department


24/60


only. He is the responsible person regarding to all the activities. In NTPC the general managers are

for each department like GM for marketing, GM for finance, GM for human resource, GM for

production. For the assistance of the general manager there will be an assistant manager which is

the second position of the department in NTPC each department have only one assistant general

manager. There are one or more senior managers in each department under the asst manager who

is the direct person who will control all the activities of departments he is controller of the

department who has to responsible to the GM &AGM, there should be at least one manager to

control the activities the will be varies with size of the department.

In the hierarchy of the organization next is managers among whom the senior

person will be promoted as Sr. manager there will be assistant manager and deputy manager who

control all the other activities of individual departments.

SKILLS:

NTPC has variety of skills doing its business. The company analyzes the potential market so

that it can market its products in efficient manner. The company sales person is trained and

provided with skills to deal with customers personally to know their needs and wants. Company also

strives in providing the better services. It has skilled staff which also provides market information

regularly which helps to study about competitors move. It also informs and makes customer aware

of market conditions. Skills are parallel to core competencies whenever there is a shift in the

strategy, firm may have to acquire expertise in new skills and older skills.

STYLE:

NTPC Company is having its own style of doing the business. All the employees of the

company are influenced to use their skills, values, knowledge, judgment, attitudes and attributes to

the fullest extent. The employees have the freedom to give suggestions to the top management.

Every individual behaves as leader and express his/her character towards their work. The company

also recognizes value, respect and celebrates the cultural difference and diversity of background and

thought of its employees. It expects its suppliers to follow applicable laws and principles in the

countries in which they operate.

STRATEGY:

NTPC Company exists to benefit and refresh everyone it touches. It is mainly targeted to

younger generation. The main company strategy is to use its significance resources and capabilities

to provide active leadership on environmental issues. NTPC is striving hard to the market leader in

the carbonated cement industries. Every employee of the organization is expected to maintain


25/60


higher standards of quality in product, process and relationship. This made them to be the premium

price brands in the market.

It also has strategy of maintaining good industrial and customer relationship. Because of all these

strategies NTPC is successful in the market. The supplier guiding principles is based on the belief

that good corporate citizenship and actions in the market place, environment in the community.

SYSTEM:System in this framework stands for rules and regulations, procedures and practices that

must be followed to carry out tasks in the organization. These include both the formal and informal

system that accommodating an organization structure.

Changes in the organization structure lead to changes in the system sometimes these are referred as

a something dull, hinders management functions, but it is well known that good system creates

working environment in the enterprise.

MIS is a system which provides information support for decision making in the organization. NTPC is

using computerized processing system as computer can store voluminous data, the data from

different sources in the organization are collected and processed in the system so that information

regarding any subject is available at hand. This system helps the NTPC to take corporate decisions in

its activities.

STAFF:

The NTPC compensates its employees fairly and competitively relative to their industry in full

compliance which applicable local and national wages and hour laws. It also offers opportunities to

employees to develop their skills aptitude, capabilities, abilities, if the performance of the employee

is good to the extent required by the company to operate its business. Each designation has their

own duties and responsible to fulfil the visionary goals of the company.

To carry out the company activities staff is classified in to:

Technical staff Clerical staff

SHARED VALUES:

The reputation of the NTPC is built on trust. Those who go business with NTPC all over India

know that the company is committed to managing its business with a consistent set of values that

represent the highest standards of quality, integrity, excellence and compliance with the law and

respect for the value of their shareholders investment. This is achieved by the sales growth, cost


26/60


control and wise investment of resources. Value creates a path to the future and plan for how to

achieve the vision.

The NTPC values are:

INTEGRITY COMMITMENT PASSION SEAMLESSNESS SPEED

Basically NTPC has three level of organisational structure:

Corporate level:-This is structured in head office of NTPC which is situated in Delhi.They are basically concerned with top level management where they handle Analysis,Decision making, future prospect part.


27/60


Regional level:-There are five regional head offices of NTPC. Plant level:-They perform duty of producing electricity.

Various departments/ in plant level:-

Headed by Head of the Project


28/60


Transfer policy

Objectives:-

To cater to the changing needs of the organisation. To ensure optimum utilisation of manpower and their skills To accomplish specific task/objectives with the available resources Towards developmental needs of the employees To meet the individual employee needs matching it with organisational requirement Job-Rotation-to give opportunities to executives to handle various functions so that

they get all round exposure which would prepare them to take up leadership positions

at a later time

Procedures/Practices:-

Vacancy: w.r.t. budget for the year

Critical requirement:-

Requirement for the initiatives Formation of JVs & subsidiaries Takeover Consultancy assignment etc. Requirement at new green field/Brown field projects etc.

Redeployment: Tapering of activities like project construction

Need based:-

Stay at existing place of positioning Nearing superannuation (less than three years service left) Request of individuals

EXECUTIVE RECRUITMENT POLICY, SELECTION PROCESS

Vacancy:- Keeping in view recruitment/vacancy, proposals are prepared by industrial

engineering group

Recruitment group initiates selection process Advertisement:-

Advertisement releases in national newspaper across India Advertisement in bi-lingual in the employment news Reservation for SC/ST/OBC/PH prescribed by govt. of India reflected inadvertisement


29/60


30/60


CHAPTER 5

FUNCTIONAL DEPARTMENTS

Basically, there are many functional departments in any organization. They are

Finance, Marketing, H.R, Operations etc. In NTPC, there are departments like Finance, Marketing,

H.R, Operations. In this chapter, all the departments of NTPC are discussed in detailed.

5.1 HUMAN RESOURCE DEPARTMENT

WELFARE

FIRST AID: Company in maintaining OHC and ambulance room at time office building. A chief

medical officer and other concern medical staff available round the clock. There were about 94 first

aid boxes available in organisation.

CANTEEN: As a statutory provision canteen is being maintained and run by management. The yearly

subsidy is about Rs 65 lakhs per annum. It provides breakfast, lunch and dinner to all the employees.

CRECHE: Crche is provided and maintained cradles, small dining table with chairs, benches and toys

were provided.

Welfare non statutory:

MEDICAL ASSISTANCE: Medical assistance scheme for treatment of chronic diseases

1. Employees who are covered under ESI Rs. 350002. Employees who are not covered under ESI Rs. 1,50,000

BIRTHDAY SWEETS: management presents one KG of sweets with greeting card duly signed by

managing

EXGRATIA: Management provides exgratia of Rs 4, 00,000 to the employees on permanent rolls and

Rs 3, 00,000 to the contract workmen in case of fatal accidents during the course of employment

.this exgratia will be given to the legal heir of the deceased employee in the case of his death in the

factory due to accident while on duty.

DEATH RELIEF FUND: Management provides an amount of RS 1lakh to the legal heir of deceased

employee in case of death .this fund is paid to the legal heirs of an employee who expires during the


31/60


service. The management and the employees shall contribute to the fund equally the contribution

payable by the employee shall be recovered from wages /salaries whenever the fund is to be raised.

FUNERIAL EXPENSES: Management meets the funereal expenses for an amount of Rs 1800

Immediately and extends all the help to bereaved family.

EDUCATIONAL ASSISTANCE: Management gives an amount of Rs 10,000 to 20 children of employees

who are got highest rank in EAMCET (medical and engineering).

MEMENTOS FOR SERVICE: Management presents one silver memento to the employees who have

completed 25 years of service.

RETIREMENT MEMENTO: Management organizes farewell function and facilitates with silver plate

worth of RS 2,500 to each employee who retires from the service of company.

KALYANA MANDAPAM EXPENSES: Management gives an amount of RS 4,000 to the employees who

perform the marriage of their children.

FAMILY PLANNING: Management gives an amount of RS 500 to those who undergo family planning

operation.

BUS/TRANSPORT FACILITY: Management has provided conveyance to school/college going children

of employees.

SPORTS/GAMES AND CULTURAL ACTIVITIES:

Management celebrates republic day on 26th Jan every year by conducting games, sportsand their family members and awards prices for winners and runners.

Management encourages and sponsors its employees to participate in zonal/state levelsports conducted by AP labor welfare board every year on the occasion of mayday

celebrations.

MAINTANANCE OF COURTS: Management is maintaining courts like ball badminton courts,

basketball courts (flood lights), volley ball court and cricket pitches in both the colonies.

SALARY ADVANCES: Management is providing festival advances and general advances to and

general advances to its employees.


32/60


SAFETY DEPARTMENT

Safety Department Structure:

Occupier

Factory manager

Senior manager safety

Sr. safety officer Safety officer Safety officer (Trainee)

Functions of safety office:

1. To advice the concern departments in a factory in planning and organizing measures necessaryfor the effective control of personal injuries.

2. To check and evaluate the effectiveness of the action taken to prevent personal injuries.3. To advice on safety aspects in all job studies and to carry out detailed job safety of selected jobs.4. To advice the purchasing and stores department in ensuring high quality and availability of

personal protective equipment (PPE).

5. To provide advice on matters related to carrying out plant safety inspections.6. To carry out plant safety inspections in order to observe the physical conditions of work and the

work practices followed by the workers and to render the advice on measures to be adopted for

removing unsafe physical conditions and preventing unsafe actions by the workers.

7. To render the advice on matters related to reporting and investigation of industrial accidents anddiseases.

8. To investigate selected accidents.9. To investigate the case of industrial diseases contracted and dangerous occurrences under rule 96.10.To advice on the maintenance of such records as are necessary relating to such records as are

necessary and industrial diseases.11.To promote setting up of safety committees and act as adviser and catalyst to such committee.


33/60


12.To organize in association with the concerned departments campaigns, competitions, contests andother activities which will develop and maintain the interest of workers in establishing and

maintaining safe conditions of work and procedures.

13.To design and conduct either independently or in collaboration with the training departmentsuitable training and educational programmes for the prevention of personal injuries.

DUTIES AND RESPONSIBILITIES:

1. Plant safety inspection.2. Coordinating departmental activities.3. Accidentincident investigation.4. Statutory compliance.5. PPE (personal productive equipment) surveys.

SECURITY DEPARTMENT

Security Department Structure:

Chief security officer (HOD)

Assistant chief security officer

Security assistants

Contract supervisors

Guards

Duties and responsibilities:


34/60


Card punching Controlling of staff movements Frisking the outgoing Allowing of vehicles by checking the documents Checking of outgoing vehicles

TIME OFFICE ADMINISTRATION

This department deals with the different functions of workers. The main functions of TOA are

1.Attendance2.Leave feeding3.Over time recording4.Deployment

1. Attendance:

Every month starting TOA makes total schedule for entire month for the workers duties

after that they will send that schedule to the respective departments if they need any changes they

will reschedule the shifts and sends it to the TOA.

Actually the workers having 4 major shifts

A-shift (6am - 2pm)

B-Shift (2pm -10pm)

C-shift (10pm- 6am)

General (7am-12pm) lunch (1.30-4.30pm)

In NTPC each worker is assigned with ID card while coming inside the Organisation they

have to punch their ID that will record their attendance after they will go to their respective work

places before entering into the work they have to sign in the registers. At the end of the day shift in

charge will submit the register to the TOA they will tally both registers and record to conform their

attendance. In a day they have to punch their ID card for four times.

1.While entering in to the job.2.At the time of lunch3.When return from lunch


35/60


4.When leaving from the job2. Leave feeding:

TOA have other function of feeding the leave of different workers there are different types of

leaves

I. Casual leave

II. Earn leave

III. Sick leave

3. over Time:

If the person for the shift not attended to the work then the employee who was previously doing

that work have to continue with the work, the superiors will inform about OT to the TOA

4. Deployment:

If there is any requirement of the labor for the unskilled jobs like sweeping, helper etc. TOA

will deploy some workers to that type of jobs.


36/60


5.2 FINANCE DEPARTMENT

Department Structure:

PRESIDENT

GENERAL MANAGER

Sr. Manager Sr. Manager Sr. Manager Manager

Accounts Costing Central Excise Sales

Accounts

Finance is the life blood of any organization. Basic requirement for an organization for

existence and survival is found or finance. Financial Management is concerned with the

management decisions that results in the acquisition & financing long term and short term. It deals

with the acquisition of specific assets the selection of specific liability as well as size and growth of an

enterprise.

The function and activities carried out by this department include finance management

and maintaining books of accounts, records and other supporting document. In NTPC organization

quick books software and account software are used for financial purpose.

OBJECTIVE

Avoiding capital blocking Maintaining adequate funds


37/60


Minimizing risk Profit maximization Searching efficient sources of funds

ROLE OF FINANCE MANAGER

Annual Budgeting Monthly budgeting Statutory audits Internal audits Directing and controlling funds Minimizing losses to the company Fringe benefits Providing details to auditors Assisting in sales tax and income tax assessment

RESPONSIBILITIES AND DUTIES

Arranging and disbursement of funds: inter group, inter unit, head office, suppliers,governmental and statutory payments etc.,

Cash management Working capital management Maintenance of books of accounts and records Internal and external audit Final reports presentation

REPORTS AND RECORDS MAINTAINED

Summary of all the activities of a month in the unit, cash flow statement, yearly

statutory reports and return such as income tax, sales tax etc.,


38/60


SUB DEPARTMENTS OF VARIOUS FUNCTIONS

1. MAINTENANCE MATERIAL PLANNING MACHANICAL ELECTRICAL CONTROL AND INSTRUMENTATION FUEL MANAGEMENT

2. FINANCE EMPLOYEE BENIFIT WORK SECTION BOOK SECTION CONCURRENTS AUDIT :-

INTERNAL AUDIT( IN EVERY THREE MONTH )

GOVERNMENT AUDIT( ONCE IN A YEAR ) STATUTORY AUDIT( ONCE IN A YEAR )

3. HUMAN RESOURCE DEPT EMPLOYEE BENEFIT HUMAN RESOURCE DEVELOPMENT CORPORATE SOCIAL RESPONSIBILITY EMPLOYEE DEVELOPMENT COUNCIL PUBLIC RELATION RAJ BHASA EMPLOYEE SECURITY


39/60


4. OPERATION & MAINTENANCE (O&M) Plant start-up including prescribing pre-operational checks Development of operation and maintenance management systems &

computerization

Supervision of equipment repairs and unit overhaul

Laboratory tests & field tests State-of-the-art operation and maintenance training for coal based and gas

based units

Performance analysis and optimization Condition monitoring of critical equipment Fuel management Energy Audit

5. MATERIAL MANAGEMENT Optimal logistics and transportation strategies Review and risk coverage requirement Integrated inventory management system, and interlink ages with o&m

system

Optimal inventory policy Development of material management system & its computerization Scrap disposal management


40/60


CHAPTER 6

SWOT ANALYSIS

Strengths:-

1. Sheer size:- Indias largest power plant with capacity to produce more than 34,000 MV electricity

in a year.

One of the Maha-Ratna of Indian company 84.50% shares are held by the government of India. Among the largest shareholder base in India with over 550 institutional investors and

over 8,00,000 retail investors as of June 30th 2013.

Out of 15 coal stations, 3 stations achieved PLF of more than 95% and other 7stations achieved PLF of more than 90%.

2.Operational efficiency:-

Coal stations achieved an availability of 91.66% as against 91.41% in 2011-12. Gas stations achieved an availability of 92.60% as against 90.64% in 2011-12. Increase in power generation capacity by 19.40% in 2012-13. Increase of 11.87% in assets as against 2011-12. Increase of revenue by 15.46% as compare to the last year. Increase of 7.78% in profit after tax.

3. Contribution towards human resource:-

Providing employment opportunities to more than 25,000 of people. Every employee is paid on the basis of 6th pay commission . Separate department for employees development and welfare.

Weakness :-

Delay in decision making. Diversification in large area makes it difficult to manage all the operations. Unavailability of labour work force

Opportunities:-

Demand of power to be increase by 1.6 times by the year 2017 which provides lots ofscope to satisfy more demand.

Energy demand growth rate is closely related with GDP growth rate and India is oneof the few countries which is showing positive growth.

Not withstanding sustained demand, India continues to be among the lowest percapita consumers of electricity, lagging behind Brazil & China by over 3:1.

Power deficit scenario has sustained despite capacity addition which says 9.8% peakdeficit and 8.5% energy deficit. In FY11.


41/60


Long term plan to generate 132 GW by 2032. Agreement with Bangladesh, Bhutan, and Sri Lanka to fuel more growth.

Threats:-

1. Fuel/environmental risk :- Overall requirement is 164.MMT but availability is only 137.2 MMT. Hike in prices of fuel by more than 10% over the period of time. Environmental concerns because of uncontrolled mining activities. Rules regarding emission of gas from plant. Various channels for testing machinery to be cleared before used. Huge land is required to increase the capacity.

2. Sustaining operational efficiency:-

NTPC became the member of North American electric reliability corporation whichmaintain data for 5000 electric units.

Maintaining huge human resources which is over 25,000.


42/60


CHAPTER 7

FINANCIAL RESULTS

PROFIT & LOSS ACCOUNT:

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST

MARCH 2013

(Rs./Lakh)

S

l.Particulars

Stand Alone Consolidated

Quarter

ended

31.03.2013

(Unaudited)

Quarter

ended

31.03.2012

(Unaudited)

Year

ended

31.3.2013

(Audited)

Year

ended

31.3.2012

(Audited)

Year

ended

31.3.2013

(Audited)

Year

ended

31.3.2012

(Audited)

1 2 3 4 5 6 7 8

1 (a) Net

Sales

(Net of

Electricit

y Duty)

1551894 1235339 5487400 4632259 5741846 4825645

(b) Other

Operatin

g Income

45867 37815 164524 189873 171566 193224

(c) Deprecia

tion

Written

Back

(net) &

Advance

Against

Deprecia

tion

recognis

ed as

Prior

Period

Sales

191 (1360) 184054 (1655) 189821 (2542)


43/60


Total

(a+b+c)

1597952 1271794 5835978 4820477 6103233 5016327

2 Expenditure

(a

)

Fuel Cost 972556 834598 3537378 2946274 3641435 3018766

(b

)

Employee

s Cost

70819 74561 278971 241236 292226 252309

(c

)

Depreciati

on

69814 73216 248569 265006 271969 289438

(d)

OtherExpenditu

re

98247 57316 284783 199965 341212 243333

(e

)

Provision

s

28398 930 155215 1090 155277 1235

Total

(a+b+c+d+e)

1239834 1040621 4504916 3653571 4702119 3805081

3 Profit from

Operations

before Other

Income,

Interest &

Exceptional

Items (1-2)

358118 231173 1331062 1166906 1401114 1211246

4 Other Income 20556 24950 88806 102533 87406 101483

5 Profit before

Interest &

Exceptional

Items (3+4)

378674 256123 1419868 1269439 1488520 1312729

6 Interest &

Finance

charges

52995 48179 214908 180893 249287 207818

7 Profit after 325679 207944 1204960 1088546 1239233 1104911


44/60


Interest but

before

Exceptional

Items (5-6)

8 Exceptional

items

- - - - - -

9 Profit(+)/Los

s(-) from

Ordinary

Activities

before Tax

(7+8)

325679 207944 1204960 1088546 1239233 1104911

1

0

Tax

Expenses:

(a

)

Current

Tax

61632 (9762) 255332 194544 260216 197908

(b

)

Deferred

Tax

(14137) 15941 39369 20913 44194 22963

(c

)

Fringe

Benefit

Tax

(FBT)

- - - 269 0 270

Total (a+b+c) 47495 6179 294701 215726 304410 221141

Less: FBT

transferred to

Expenditureduring

Construction

/

Development

of coal mines

- - - - - (5)

Tax Expenses

(Net)

47495 6179 294701 215726 304410 221146


45/60


1

1

Net

Profit(+)/

Loss(-) from

ordinary

activity aftertax (9-10)

278184 201765 910259 872820 934823 883765

1

2

Extraordinary

Items (Net of

tax expenses)

- - - - - -

1

3

Net

Profit(+)/

Loss(-) for

the year

before

Minority

Interest (11-

12)

278184 201765 910259 872820 934823 883765

1

4

Minority

Interest in

Consolidated

Profit

- - - - (517) (3)

1

5

Net Profit

(+)/ Loss (-)

for the year

after

Minority

Interest (13-

14)

278184 201765 910259 872820 935340 883768

1

6

Paid-up

Equity Share

Capital

(Face value

of share Rs.

10/- each)

824546 824546 824546 824546 824546 824546

1

7

Paid-up Debt

Capital

4318824 3779702


46/60


1

8

Reserves

excluding

revaluation

reserve as per

BalanceSheet

5964679 5419196 6013910 5437182

1

9

Debenture

Redemption

Reserve

223166 198672

2

0

Earnings per

share - (EPS

in Rs.)

(a

)

Basic and

diluted

EPS

before

Extra-

ordinary

items (not

annualise

d)

3.37 2.45 11.04 10.59 11.34 10.72

(b

)

Basic and

diluted

EPS after

Extra-

ordinary

items (not

annualise

d)

3.37 2.45 11.04 10.59 11.34 10.72

2

1

Debt Equity

Ratio

0.64 0.61

2

2

Debt Service

Coverage

Ratio

(DSCR)

2.57 3.92

2 InterestService

11.42 13.64


47/60


3 Coverage

Ratio (ISCR)

2

4

Public

Shareholding

(a

)

Number

of shares

127810322

0

12781032

20

12781032

20

12781032

20

12781032

20

12781032

20

(b

)

%age of

share

holding

15.50 15.50 15.50 15.50 15.50 15.50

2

5

Promoters

andPromoter

Group

Shareholdin

g

(a

)

Pledged/

Encumber

ed

- Number

of Shares

- - - - - -

- Percentag

e of share

(as % of

the total

shareholdi

ng of

promoterand

promoter

group)

- - - - - -

- Percentag

e of share

(as % of

the total

sharecapital of

- - - - - -


48/60


the

company)

(b

)

Non-

encumbered

- Number

of Shares

696736118

0

69673611

80

69673611

80

69673611

80

69673611

80

69673611

80

- Percentag

e of share

(as % of

the total

shareholdi

ng of

promoter

and

promoter

group)

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

- Percentag

e of share

(as % ofthe total

share

capital of

the

company)

84.50% 84.50% 84.50% 84.50% 84.50% 84.50%

BALANCE SHEET:

SUMMARY OF ASSETS AND LIABILITIES AS AT 31st

MARCH 2013

(Rs./Lakh)

Particulars


Year ended

31.03.2013

(Audited)

Year ended

31.03.2012

(Audited)

Year ended

31.03.2013

(Audited)

Year ended

31.03.2012

(Audited)

SOURCES OF FUNDS


49/60


Shareholders Funds:

(a) Capital 824546 824546 824546 824546

(b) Reserves and Surplus 5964679 5419196 6013910 5437182

Deferred Revenue from

Advance Against

Depreciation

79205 161084 79205 161084

Deferred Income from

Foreign Currency

Fluctuation

6243 - 6243 -

Ash Utilisation Fund - - 5896 1062

Loan Funds

(a) Secured Loans 991068 907992 1742640 1537643

(b) Unsecured Loans 3327756 2871710 3332843 2877210

Deferred Foreign

Exchange Fluctuation

Liability

9654 6105 9667 6105

Deferred Tax Liability

(net) after Recoverable

60295 20925 67165 22971

Minority Interest - - 48505 27896

TOTAL 11263446 10211558 12130620 10895699

APPLICATION OF

FUNDS

Goodwill onConsolidation

- - 62 62

Fixed Assets incl. CWIP

and Construction Stores

& Advances

7750659 6686560 8971821 7648619

Investments 1234484 1480709 835733 1177761

Deferred Foreign

Currency Fluctuation

45915 36517 45915 36525


50/60


Assets

Current Assets, Loans

And Advances

(a) Inventories 363912 334771 391083 353296

(b) Sundry Debtors 792431 665146 839987 708081

(c) Cash and Bank

balances

1618526 1445948 1785983 1605301

(d) Other current assets 104697 84404 107158 86802

(e) Loans and Advances 660113 551311 680321 568069

Less: Current Liabilities

and Provisions

(a) Liabilities 1032048 768758 1243876 975792

(b) Provisions 275243 307058 283567 315033

Net Current Assets 2232388 2005764 2277089 2030724

Deferred Expenses from

Foreign CurrencyFluctuation

- 2008 - 2008

TOTAL 11263446 10211558 12130620 10895699

AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

FOR THE YEAR ENDED 31st

March 2013

(Rs./Lakh)

Sl.Particulars


Quarter

ended

31.03.2013

(Unaudited)

Quarter

ended

31.03.2012

(Unaudited)

Year

ended

31.03.2013

(Audited)

Year

ended

31.03.2012

(Audited)

Year

ended

31.03.2013

(Audited)

Year

ended

31.03.2012

(Audited)

1 2 3 4 5 6 7 8

1 Segment

Revenue

(Net Sales)


51/60


- Generation 1547114 1230529 5470455 4616867 5683996 4774991

- Others 4780 4810 16945 15392 57850 50654

- Total 1551894 1235339 5487400 4632259 5741846 4825645

2 Segment

Results

(Profit

before Tax

and

Interest)

- Generation 327128 197550 1209483 1015253 1267669 1049376

- Others 762 1664 5020 5816 13598 16085

- Total 327890 199214 1214503 1021069 1281267 1065461

Less

(i)

Unallocated

Interest and

Finance

Charges

36450 28584 143284 111682 174059 138312

(ii) Other

Unallocable

expenditure

net of

unallocable

income

(34239) (37314) (133741) (179159) (132025) (177762)

Total Profit

before Tax

325679 207944 1204960 1088546 1239233 1104911

3 Capital

Employed

(Segment

Assets -

Segment

Liabilities)

- Generation 4526023 3945020 4526023 3945020 5050764 4346095


52/60


- Others 425 5445 425 5445 29635 33623

- Un-

allocated

2262777 2293277 2262777 2293277 1758057 1882010

- Total 6789225 6243742 6789225 6243742 6838456 6261728

The operations of the company are mainly carried out within the country and therefore,

geographical segments are not applicable.

Notes:

1 The Subsidiaries and Joint Venture Companies considered in the Consolidated Financial

Results are as follows

a) Subsidiary Companies Ownership (%)

1 NTPC Electric Supply Company Ltd.

(incl. its Joint Venture Kinesco Power and Utilities Private

Ltd *. with 50% holding)

100

2 NTPC Vidyut Vyapar Nigam Ltd. 100

3 NTPC Hydro Ltd. 100

4 Kanti Bijlee Utpadan Nigam Ltd. 64.57

5 Bhartiya Rail Bijlee Company Ltd. 74

b) Joint Venture Companies

1 Utility Powertech Ltd. 50

2 NTPC Alstom Power Services Private Ltd. 50

3 NTPC SAIL Power Company Private Ltd.* 50

4 NTPC - Tamilnadu Energy Company Ltd.* 50

5 Aravali Power Company Private Ltd. 50

6 Ratnagiri Gas and Power Private Ltd. 30.17

7 Meja Urja Nigam Private Ltd. 50

8 NTPC-BHEL Power Projects Private Ltd 50

9 BF-NTPC Energy Systems Ltd.* 49


53/60


10 Nabinagar Power Generating Company Private Ltd. 50

11 National Power Exchange Ltd. 16.67

12 NTPC-SCCL Global Ventures Private Ltd. 50

13 International Coal Ventures Private Ltd.* 14.28

14 Transformer and Electrical Kerala Ltd.* 44.6

15 Energy Efficiency Services Ltd.* 25

16 National High Power Test Laboratory Private Ltd.* 25

17 CIL-NTPC Urja Pvt. Ltd.* 50

All the above companies are incorporated in India.

* The financial statements are un-audited.

2 a) The Central Electricity Regulatory Commission (CERC) notified the Regulations,

2011 in January 2011, containing inter-alia the terms and conditions for determination

of tariff applicable for a period of five years with effect from 1st April 2011. Pending

determination of station-wise tariff by the CERC, sales have been provisionally

recognized at Rs. 48,93,531 lakh (previous year Rs. 44,47,393 lakh) for the year

ended 31st March 2011 on the basis of principles enunciated in the said Regulations

on the capital cost considering the orders of Appellate Tribunal for Electricity

(APTEL) for the tariff period 2004-2011 including as referred to in para 2 (d).

Regulations, 2011 provide that pending determination of tariff by the CERC, the

Company has to provisionally bill the beneficiaries at the tariff applicable as on 31st

March 2011 approved by the CERC. The amount provisionally billed for the year

ended 31st March 2013 on this basis is Rs. 47,51,921 lakh (previous year Rs.

43,76,513 lakh).

b) For the units commissioned subsequent to 1st April 2011, pending the determination

of tariff by CERC, sales of Rs. 4,52,839 lakh (previous year Rs. 1,73,540 lakh) have

been provisionally recognised on the basis of principles enunciated in the

Regulations, 2011. The amount provisionally billed for such units is Rs. 4,41,612

lakh (previous year Rs. 1,53,650 lakh).

c) Sales of Rs. 80,087 lakh (previous year Rs. 11,933 lakh) pertaining to previous years

have been recognized based on the orders issued by the CERC/APTEL.

d) In respect of stations/units where the CERC had issued tariff orders applicable from

1st April 2004 to 31st March 2011, the Company aggrieved over many of the issues

as considered by the CERC in the tariff orders, filed appeals with the APTEL. The


54/60


APTEL disposed off the appeals favourably directing the CERC to revise the tariff

orders as per the directions and methodology given. The CERC filed appeals with the

Honble Supreme Court of India on some of the issues decided in favour of the

Company by the APTEL. The decision of Honble Supreme Court is awaited. The

Company had submitted that it would not press for determination of the tariff by theCERC as per APTEL orders pending disposal of the appeals by the Honble Supreme

Court.

Considering expert legal opinions obtained that it is reasonable to expect ultimate

collection, the sales for the tariff period 2004-2011 were recognised in earlier years

based on provisional tariff worked out by the Company as per the directions and

methodology given by the APTEL. As accountal of sales is subject to the decision of

the Honble Supreme Court of India, pending decision of the Honble Supreme Court

of India, a sum of Rs. 1,26,286 lakh included in debtors has been fully provided for

during the year. Effect, if any, will be given in the financial statements upon disposalof the appeals.

e) Consequent to issue of additional capitalisation orders by the CERC, advance against

depreciation required to meet the shortfall in the component of depreciation to be

charged in future years has been reassessed and the excess determined amounting to

Rs. 7,975 lakh has been recognised as sales.

f) During the year, the CERC has issued tariff orders in respect of some of the stations

in compliance with the judgement of APTEL mentioned at para d) above, and the

beneficiaries were billed accordingly. Since the orders of CERC include those issueswhich have been challenged by them before Honble Supreme Court, and are pending

disposal, the impact thereof amounting to Rs. 25,222 lakh has been accounted as

Advance from customers.

3 Sales includes Rs. 33,851 lakh (previous year (-) Rs. 71,993 lakh) on account of income

tax recoverable from customers as per CERC Tariff Regulations, 2006 and Rs. 2,172 lakh

(previous year Rs. 24,847 lakh) on account of deferred tax recoverable from customers as

per CERC Tariff Regulations, 2011.

4 CERC has issued a draft notification dated 3rd September 2012 which inter-alia providesfor upfront truing up of un discharged liabilities with regard to capital cost admitted by

CERC before 1st April 2011. In anticipation of final notification an estimated amount of

Rs. 26,359 lakh has been provided for towards tariff adjustment.

5 Provision for current tax for the year includes tax related to earlier years amounting to Rs.

5,602 lakh (previous year (-) Rs. 52,540 lakh).

6 During the year 2012-13, one unit of 490 MW at Dadri and one unit of 500 MW at Korba

of the Company have been declared commercial w.e.f 31st July 2012 and 21st March 2013

respectively.


55/60


7 Effect of changes in Accounting Policies:

a) During the year, the Office of the Comptroller & Auditor General of India has

expressed an opinion that power sector companies shall be governed by the rates of

depreciation notified by the CERC for providing depreciation in respect of generating

assets in the accounts instead of the rates as per the Companies Act, 1956.

Accordingly, the Company revised its accounting policies relating to charging of

depreciation w.e.f 1st April 2011 considering the rates and methodology notified by

the CERC for determination of tariff through Regulations, 2011. In case of certain

assets, the Company has continued to charge higher depreciation based on technical

assessment of useful life of those assets. Consequent to this change, prior period

depreciation written back is Rs. 1,11,650 lakh, depreciation for the year is lower by

Rs. 27,962 lakh. As a result, fixed assets and profit before tax for the year is higher by

Rs. 1,39,612 lakh.

b) Due to the above change, the amount of advance against depreciation (AAD) required

to meet the shortfall in the component of depreciation in revenue over the

depreciation to be charged off in future years has been reassessed by the Company

station-wise as at 1st April 2011 and the excess determined, amounting to Rs. 72,749

lakh has been recognised as prior period sales.

c) Further, the amount recoverable from the beneficiaries on account of deferred tax

materialised for the financial year 2011-12 has been reassessed and excess amount of

Rs. 21,267 lakh is reversed as Prior Period Sales with equivalent reduction in

provision for tax of earlier years in the Profit and Loss Account.

d) Further, due to the above change, deferred tax liability (net) and deferred tax

recoverable from the beneficiaries as at 31st March 2012 amounting to Rs. 3,04,941

lakh and Rs. 2,84,016 lakh respectively have been reviewed and restated to Rs.

4,41,519 lakh and Rs. 3,80,969 lakh respectively. As a result, deferred tax liability as

at 31.03.2012 has increased by Rs. 1,36,578 lakh out of which Rs. 96,953 lakh is

recoverable from the beneficiaries as per Regulation 39 of Regulations, 2011 and net

increase is debited to provision for deferred tax.

8 Ministry of Power (MOP), Government of India (GOI) vide letter dated 24.12.2012 has

communicated the discontinuation of one of the Hydro Power Projects of the Company in

the State of Uttarakhand. Subsequently, the Company has issued Letter of Frustration to

the suppliers/vendors of the project.

MOP has sought details of expenditure incurred, committed costs, anticipated expenditure

on safety and stabilization measures, other recurring site expenses and interest costs, as

well as claims of various packages of contractors/vendors. Management expects that the

total cost incurred, anticipated expenditure on safety and stabilization measures, other

recurring site expenses and interest costs as well as claims of various packages of

contractors/vendors for this project will be compensated in full. Hence, cost incurred on

Date post:	14-Apr-2018
Category:	Documents
Upload:	ravindra-chowdary-gudapati
View:	219 times
Download:	0 times

Ntpc New Profile

Documents