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A REPORT ON
FORECASTING OF HYDROELECTRIC PROJECTS BY NHPC PREPARING A BID ON KAMENG HYDROELECTRIC PROJECT
BY ALSTOM
PRESENTED BY:
SANTANU BANERJEEPGDBM
ROLL NO. 10/209BATCH- 2002-2004
CERTIFICATE
This is to certify that Mr. Santanu Banerjee, a Post Graguate Diploma in Business
Management student of Apeejay School of Marketing, Dwarka, New Delhi, has
successfully completed his summer training in Hydro Sales & Marketing area in
our organisation from 15th May’2003 to 30th June’2003.
During his training he was found to be sincere & dedicated towards his
assignments given to him.
We wish him all the success in his near future.
………………………
Mr. Manjeet Singh
………………………
(H.R Manager) Mr. Ravi K. Arora (Sales & Marketing Manager)
DECLARATION
I, SANTANU BANERJEE, a student of APEEJEAY
SCHOOL OF MARKETING, DWARKA, hereby declare that
this project is my original work & all the data in this report is
true to the best of my knowledge.
SANTANU BANERJEE
ACKNOWLEDGEMENT
I acknowledge with thanks the continued co-operation received from
Mr. Ravi K. Arora during my training period of one & a half months
who acted as a guide for my project, without whose sincere & fruitful
advice this report could not have been prepared.
I am also thankful to the staff member of ALSTOM & NHPC’s senior
officers who have contributed valuable datas in preparing this report.
Fatherly guidance & ray of future hope torched by Mr. G.D.Singh
( Professor of Marketing ) will remain memorable dream for
preparation of this project report.
PREFACE
Experience counts much more than theory, that is why the companies
are providing management training to upcoming professionals. This
training helps them to overcome the problems that they face in future.
If we speak in the context of marketing, we find that this training
provides the trainees the upto date knowledge of the consumer’s taste,
preference & the current trend prevailing in the market.
I was fortunate enough to work as a summer trainee for a period of one
& a half months.
The training was interesting, satisfying & inspiring.
CONTENTS
1.0 POWER INDUSTRY …………………………………….1
2.0 MINISTRY OF POWER ………………………………..13
3.0 CENTRAL AUTHORITY OF INDIA ………………….28
4.0 HISTORICAL PERSPECTIVE &
CURRENT SRTUCTURE OF THE COMPANY ………40
5.0 SUMMER TRAINING REPORT
5.1 FORECASTING OF HYDROELECTRIC ………87
PROJECTS BY NHPC
5.2 BID OF KAMENG HYDROELECTRIC
PROJECT ……………………………………………97
6.0 ANNEXURE – I …………………………………………..145
APEEJAY INFORMATION SUPPORT SYSTEM
7.0 ANNEXURE – II ………………………………………….195
A REPORT ON INDUSTRIAL VISIT
8.0 BIBLIOGRAPHY …………………………………………196
FEEDBACK REORT
EXECUTIVE SUMMERY
This report have been divided into nine parts which is mentioned in the
content.
In the first part it has been discussed about the Power Industry, their
strategies, policies, etc…In the second part it has been discussed about
the Ministry of Power, organizations under the, set up of the
organizations, initiatives taken by the ministry of power & so on. The
third part contains a brief report of Central Authority of India (CEA).
Again organizations under CEA has been discussed in this part, major
river system hydro potential etc…are also there.
The major part of this report is the summer training report. There are
two report under this content. One is forecasting hydroelectric project
by NHPC ( National Hydroelectric Power Corporation )- a plan wise,
stage wise report. Another report is about a Bid of Kameng
Hydroelectric Project invited to ALSTOM by NEEPCO North East
Electric Power Corporation) Ltd.
After this part there are Annexures I & II. Annexure I contains Apeejay Information Support System & Annexure II contains a report on the industrial visit to ATLAS Cycles by the college. Finally the bibliography.
POWER INDUSTRY
POWER INDUSTRYElectric power is the backbone of any economy and thus any development in the electric power industry will have a significant impact on the over all economic scenario and vice versa. Given the fact that Indian industry is growing at a rate of 6 percent per year, the role of electric power assumes more importance. The Government has taken many liberalization measures in the power generation sector. However, the demand still far-exceeds the supply and power cuts have become everyday reality. Thus, the situation indirectly offers a huge potential for private players, both domestic & overseas.
The report provides a complete analysis on the Indian power industry, starting with classifications/sub-classification in power sector based on functions (generation companies and Transmission& distribution companies) and ownership. A broad picture of the global power industry has been provided followed by a comprehensive comparison of Indian power sector scenario with that of the world.
The structure of the power industry in India, the regulations and regulators that control the power industry in India, a brief history of the control regime, the changes in the controls in the last decade have all been crisply captured in the report.
India is in a dire need of new capacities in the power sector. The report gives a comprehensive analysis about the fuel reserves, supply and demand conditions, the trend in capacity additions in various segments, demand growth and power shortages. The performance of Indian power sector in various performance parameters is very poor when compared with global standards. The main reason for this is the problems in the State Electricity Boards (SEB) and specific policies of government, like cross subsidies. The report analyses problems of Indian power industry (like failure to meet capacity addition target, loss-making SEBs in a separate section etc).
The strategies and financials of the following major players are given in the report.
Central utility sector
National Thermal Power Corporation,
National Hydel Power Corporation,
Licensees
Tata power, BSES and CESC
State Electricity Boards
STRATEGIES IN POWER INDUSTRY
One of the few political issues on which all parties contesting recent elections could agree was the need to encourage investment, especially in infrastructure. And with good reason. India is plunging head-long towards an energy crisis that will cripple the country's burgeoning economy if government does not act fast.
As part of India's five-year-old economic reform plan, the energy sector was recently opened up to private investments. The new power policy assured, among other things, a 16 percent rate of return, protection against currency fluctuations and committed buy back arrangements.
The previous Congress government had sanctioned eight multi-million dollar "Fast Track" power projects, bypassing the usual red tape and avoiding the years of international tender notices and political horse-trading.
Though the new United Front government has promised to honour the power deals made by the previous Congress administration, this government already has some other heavy financial commitments of its own. In the meantime, the government and the state-owned power sector have no alternative but to look for ways of increasing the efficiency of the existing electricity generating capacity. The World Bank's support in this regard may be the turning point.
One of the major factors bogging down electricity generation in India is the irregular availability of fuel for thermal power stations. Both petroleum and coal based plants are suffering from this malady, primarily due to insufficient transportation infrastructure and, in the case of coal, non-optimal utilization of available natural resources. Steps must be taken on a war footing to counter these lacunae.
On the consumer management side, the government has facilitated the restructuring of the State Electricity Boards with the help of the World Bank.
OVERCOME FROM POWER CRISIS
A recent report by the World Bank has warned India that unless it introduces reforms in its power sector it could lose millions of dollars in revenue.The report prescribes an injection of 10 billion dollars over the next five years into the power sector, without which India will be facing eight to ten hour power cuts, daily.
Over in Sri Lanka, India's island neighbour, this cautionary tale is a reality. One bad monsoon and the nation's hydro-power reservoirs have dropped, unable to meet the demand for electricity. Business and industry, faced with daily power cuts, are losing an estimated 18 million dollars a day.
Economic reforms, introduced in 1991, are slowly transforming India from an
economic laggard into an important emerging market. But politics, a labyrinthine bureaucracy and corruption have turned many potential investors away. Those who took the plunge in the power sector, namely eight so called "fast-track" power projects have yet to generate a single megawatt of electricity.
These projects, one of which is the controversial Enron-led Dabhol power project, were granted negotiated deals in an effort to speed up the process. But in India's arcane bureaucracy every project requires dozens of approvals from various state and central government departments.
Part of the problem lies with the state-run electricity boards, which are losing an estimated 20 billion dollars (Rs.7,000 crore) annually. In 1994, the World Bank slashed $750 million in loans to the power sector because the states refused to stop giving away electricity, mostly to politically powerful farmers. A lack of efficient monitoring means that a huge amount of electricity is stolen.
The new United Front coalition government, led by reform-minded Prime Minister H D Deve Gowda, has assured private companies that efforts will be made to simplify policies for investing in energy and other parts of the cash-starved infrastructure.
However, Mr. Gowda has to grapple with the protectionist tendencies of his socialist and communist partners who are reluctant to privatise state-owned enterprises.
Meanwhile, the World Bank is back on the scene with a plan to restructure the state power sector by dividing up the state electricity boards into separate companies for generating, transmitting and distributing electricity.
With private power projects unlikely to be operational for at least another two years, efforts to improve the efficiency of the existing plants, seem to be the only solution to India's impending black-out.
NEW POLICIES BY GOVERNMENT
Indian industry desperately needs better power infrastructure than is currently available in the country, for its survival. The government needs to take decisive measures to prop up the sorely lagging power generation capabilities in India. Large scale privatisation and thorough policy restructuring are the need of the day, for the power industry to gear up and meet present and future needs.
Two recent policies are aimed at doing just that. The State Electricity Boards (SEBs), with the help of private partners, are planning to renovate the existing power plants by improving technology. Suffering from a chronic fuel shortage, most plants simply shut down for extended periods every day, leaving consumers in the dark. Big factories that need a steady supply of electricity are setting up captive power plants that run on high speed diesel or other heavy fuels.
The new liquid fuel policy is expected to cater to the captive fuel needs of such plants. Independent power producers will be permitted to use heavy petroleum stock (HPS), low sulphur heavy stock (LSHS), heavy furnace oil (HFO), furnace oil (FO) and natural gas as primary fuel for the power projects. However, the government has not allowed high speed diesel to be used as a fuel for these plants. While these policies show that the government is making some effort to stall the impending power crisis, other issues are awaiting decisions.
On the consumer management side, the government has facilitated the restructuring of the State Electricity Boards with the help of the World Bank.
Among the other policies on the anvil is a plan to privatise the fuel supply system. In most proposed power projects, fuel leakage and fuel risk responsibility have been among the main stumbling blocks. The states as the fuel supplier is unwilling to sign any guarantees and the private power companies are unwilling to risk running out of fuel.
The new policies may be part of the solution, but industry waits with bated breath to see how effective these policies are in the long run.
RESOURCE UTILISATION
By the end of 1995, India's total installed power generation capacity was 81,164 Megawatt. Of that, hydro-electricity (hydel) accounts for almost 26 percent, but hydel accounts for less than 13 percent of the total electricity generated in the first three years of the current eighth plan. In the thermal power segment, the average plant load factor (PLF) has improved in recent years, especially in the south and west of the country. Thermal power generation appears to be the most promising way for India to meet it's power requirements over the next years. The previous government as well as the new United Front government have several projects on hand to best serve this requirement.
Among the projects on the anvil is a plan to privatise the fuel supply system. In most proposed power projects, fuel leakage and fuel risk responsibility have been among the main stumbling blocks. The states as the fuel supplier is unwilling to sign any guarantees and the private power companies are unwilling to risk running out of fuel.
India has huge reserves of coal, a sector which has been partially privatised, but the government has not done enough to attract investors to develop the mining industry. Also, the concept of developing captive mines has not yielded much benefit for the power companies due to the problems related to economies of scale.
Another related area where this argument is extended is the transport sector. The previous ministry of transportation was in the view that the legally enforceable
commercial agreement with transporters of fuel like the railways should be made into a mandatory clause. Once the basic transport and resource utilization (mining, petroleum refining) infrastructure starts developing apace with the needs of the power generation industry, the thermal power units will start to be functionally efficient, and the needs of Indian industry will be better met.
Realizing that India faces a fatal electricity crisis in the very near future if privatisation of the power sector were to move at the usual slow pace that is the norm for large projects, the previous government took major steps to expedite the operations for this sector. Eight multi-million dollar "fast track" power projects were given negotiated deals, rather than put them up for tender, to speed up the process. But thanks to bureaucratic delays and politics, not a single megawatt of electricity has been generated by any of these projects. In most cases the projects are still on paper awaiting approvals and clearances from myriad state and central government departments.
The only project showing any sign of progress is the 2.5 billion dollar Enron-led Dabhol power project. In August 1995, things looked bleak for Enron when the project was cancelled when a right-wing government came to power in the state of Maharashtra. Later the deal was renegotiated with minimal changes.
But the outlook is far from rosy. The fast-track projects were meant to bridge India's current 20 percent electricity shortage. The Planning Commission estimates, rather optimistically, that 48,000 megawatts can be generated by the end of the Eighth Plan. In fact, actual generation is unlikely to exceed 18,000 MW, short by 30,000 MW. Against the target of 1234.25 MW set for April-December 1995-1996, only 510.25 MW has been added so far.
Between 1980 and 1993 the GDP increased by one percent, while the elasticity of electricity generation and consumption increased by 1.65 and 1.61 percent, respectively. The elasticity has declined from over 3 percent in the first and second five-year plans to nearly 1.5 percent in the Seventh Plan.
This rather dark scenario in one of the major problems the new United Front government must tackle very quickly and effectively, if it is to have any success in enhancing India's economic prospects as a successful industrial power in Asia and globally. All eyes are on the coalition government, both within Indian industry and among foreign investors.
In January 1996, the right-wing Hindu government in the Indian state of Maharashtra reversed itself and approved a controversial US$2.5 billion power plant to be built by an American multinational, the Enron Development Corporation.
In Bombay, the state's chief minister, Manohar Joshi, who in August had scrapped the 2,015 megawatt project as being "anti-people", cleared the project, the single largest foreign investment in India since the government in 1991 started new
economic reforms. The political controversy in which Enron became embroiled in Maharashtra scared off other multi-nationals wary of risking money in India's emerging markets.
Maharashtra's right-wing Hindu government --an alliance between Shiva Sena and the Bharatiya Janata Party (BJP)-- said it was satisfied with the concessions made by the US-based multi-national during the arduous renegotiations. However, an Enron spokesman said that while the state's volte face was "a significant step", some details remained to be sorted out. Enron and state electricity authorities are reportedly still bargaining over the price the multinational will be able to charge for its power.
Mr Joshi tore up the Enron deal, made by the previous Congress state government, after the right-wing Hindu coalition won the Maharashtra elections. The chief minister said the contract was awarded without competitive bidding. He also claimed that the power plant threatened to damage the coastal environment and that Enron was demanding high rates.
The Hindu nationalists portrayed Enron as a multinational with fangs, ready to drain the savings of India's poor farmers and townspeople. It proved an effective vote-winner for them. Enron was lumped with MTV, Pepsi-Cola and Kentucky Fried Chicken as symbols of western obnoxiousness. The Enron fiasco was held up by the Hindu extremists as a cautionary tale of all that could go wrong when India opened its doors to greedy western firms, after nearly half a century of a shut-off socialist economy.
After Mr Joshi canceled the project, Enron's glamorous chief executive officer, Rebecca Mark, lobbied smoothly with Bombay's right-wing Hindu chiefs to change their minds. Ms Mark remarked, "Indians believe in reincarnation, so the (power project) too can reincarnate."The newly-elected Hindu politicians also faced the prospect of paying off stiff penalty fees to Enron. International arbitrators might have forced Maharashtra to compensate Enron with up to $2 billion for tearing up the project. Mr Joshi claimed that Enron had agreed to lower its rates and scale down the project's original cost to $1.8 billion. Maharashtra, and especially Bombay, the country's economic powerhouse, is also desperately short of electricity. This makes the project critical in more ways than one.
INDIAN POWER SECTOR- CHANGE OF GEAR
The old order changeth, yielding way to the new. Lord Tennyson’s lyric will ring true as long as there exists the human will to strive for better. Sure enough, one can today witness reform, though incipient yet, rearing its tiny head into the vast and grossly mismanaged Indian power sector. Indisputably, the single most significant event that the power sector witnessed in 1998 was the passage of the Electricity Regulatory Act 1998 in July, providing for the establishment of the Central
Electricity Regulatory Commission (CERC) and the option to state governments to set up their State Electricity Regulatory Commissions (SERCs).
1.Present state of affairs2.Problems facing the power sector 3.Yes to rational tariff: one step ahead 4.Reforms needed in the power sector 5.The media charts power sector restructuring
Present state of affairs
Substantial development may have taken place in power generation, stepping it up from 1 300 MW to 90 000 MW since Independence. However, on the flip side, the energy shortage of about 11.5% and peak shortage of about 18% continue to plague our economy. A Merrill Lynch study further reveals that as against a national plant load factor (PLF) average of 63%, State Electricity Boards (SEBs) have recorded a PLF of only 58% along with high transmission & distribution (T&D) losses of almost 23%.
The most significant reason for economic slow down is that the growth of infrastructure has not kept pace with the economic growth. Instead of providing a fillip, it has become the greatest bottleneck. Any amount of power generated in power stations is of little significance if a reliable and efficient system is not available to deliver the electricity to the consumer.
In this regard, consider the SEBs. They are in a deplorable state of affairs and terrible financial health, plagued with problems of high T&D losses, large outstanding to central sector companies, inadequate investment, and irrational tariff structures. These problems, with numerous respective yet inextricably interlinked causes, result in power shortages, supply of poor quality power to customers, and the eroding of the financial viability of SEBs. The 1997/98 Economic Survey showed up the worst performance of SEBs since 1985, with the overall rate of return (ROR) plummeting to -17.6%. In 1998/99, the ROR is expected to slide further to -17.8% (whereas the Electricity (Supply) Act prescribes that each SEB earn a minimum return of 3%.)
A Planning Commission report revealed that, in 1996/97, the combined commercial losses (excluding subsidies) of the country's 19 inefficient SEBs touched a whopping Rs 10 000 crore (US $2.3 billion). The losses would have been even higher, actually more than double that total, had the SEBs paid dues to other government utilities and enterprises. As of end-1998, the losses are still staggeringly high at Rs 7500 crore (annual inclusive of subsidy).
Furthermore, dues to the central power utilities have increased by around Rs 4000 crore in the nine months ending September 1998. Delhi, Bihar, and Uttar Pradesh
together account for around 50% (Rs 14 800 crore) of the outstanding towards the power companies, including National Thermal Power Corporation (NTPC), National Hydro Power Corporation (NHPC), Rural Electrification Corporation (REC), Power Finance Corporation (PFC), and Power Grid Corporation (PGC).
Problems facing the power sector
India is a rare example of a large country where the electricity supply industry continues to function essentially like a group of government departments. And the most problematic area in the electricity sector has been the operational and financial performance of the State Electricity Boards (SEBs). Since the State has been directly regulating most SEB activities, they are prone to political interference of varying degrees as suited to populist objectives. From day-to-day operational matters to tariff setting, all are susceptible to such interventions.
Take subsidies. Certain sections of consumers, like farmers and domestic users, continue to receive huge subsidies that erode the financial health of SEBs. Subsidies were introduced to promote economic development with the agricultural sector claiming the major share. The initial impact was small and could be funded through Government budgets. But during the 1980s and 1990s, the element of subsidy increased manifold, could not be funded by the Government and appeared as losses to SEBs. The ‘effective subsidy’, i.e. the difference between cost and revenue earned, for farm and home users has been assessed at Rs 19 200 crore in 1996/97, almost 1.4% of India's gross domestic product (GDP). Added to this, SEBs heavily cross-subsidise power thus totally skewing power consumption.
Most SEBs show stupendous losses if state governments do not pay out subsidies. In 1996/97, state governments collectively paid around Rs 2 700 crore to improve the SEB loss position. State-wise figures indicate that even some of the better boards show that their profits or losses are dependent on the subsidy doled out by the state governments. Take the case of Maharashtra. If the board's profits during 1995/96 and 1996/97 were Rs 223.2 crore and Rs 196 crore respectively, it is not to be overlooked that government subsidies during the same periods were to the tune of Rs 630 crore and Rs 268 crore, respectively.
All in all, it is clear that electric power has been considered more of a social service than a business. Prices do not reflect costs and state institutions are dependent on allocations from the public budget, stretching the demand on public funds beyond capacity. This also impedes the development of private capital markets, the only real alternative to continued government funding. Some steps to alleviate the situation, which unfortunately are not carried out to optimum levels, are enhancing generation capacity, renovating and maintaining existing plants, increasing efficiency, reducing losses and attracting private as well as foreign investment in
power. Most importantly, tariff reforms should be initiated to improve the health of SEBs, as non-remunerative tariffs and heavy subsidization are the primary causes of the SEBs current financial status.
The establishment of a suitable regulatory mechanism is a key area of reform exercise. The fast pace of reforms in the power sector needed to attract investment worth Rs 2 50 000 crore needed till 2002, may come to nought if states do not shun populism and revive their SEBs that lose so much annually.
Yes to rational tariff: one step ahead
Poor State Electricity Board (SEB) performance is vastly attributed to the low tariffs set by the state government as well as poor revenue collection and increasing costs. The extremely low tariff levels set by state governments yield revenues well below the average cost of generation. According to the present Electricity (Supply) Act, all states governments are to prescribe power tariffs which permit SEBs to generate a minimum return of 3% on their net fixed assets after meeting fixed and operating costs, interests, and tax liabilities. However, current tariff levels do not meet even 80% of the total cost of supplies.
Trends reveal that the average tariff hike required to turn around SEB losses has increased over the last few years. While the increase in tariff required in 1992/93 was around 26 paise per unit, the figure in 1996/97 was around 44 paise. These increases would have generated around Rs 5600 crore and Rs 12 300 crore in 1992/93 and 1996/97, respectively. A recent analysis estimates the required hike now at 40 paise. This will not only enable all SEBs to achieve the minimum three per cent ROR but also result in additional resource mobilization of Rs 12 000 crore.
According to the Energy Policy Committee (EPC), without a rationalization of electricity tariffs, the net worth of SEBs would be eroded to the extent of Rs 77 000 crore in the next decade. This raises serious doubts about the states' ability to contribute their share of power capacity addition during the Ninth Five Year Plan and beyond, One does see indicators of hope. In December 1998, the Andhra Pradesh Cabinet hiked the tariff for all sectors, from 21% to 28% to alleviate the financial troubles of the APSEB. On Christmas Eve in 1998, the West Bengal government allowed the WBSEB to mobilize an additional Rs 247 crore annually through its latest basic tariff revision. This involves a steep rise in all agriculture-related tariffs, ranging from 44% to 61%.
The unsatisfactory financial health of the SEBs has acted as a constraint to provide adequate investments for improving the utilization of existing capacities and for new capacity creation. There is hardly any option left except to reform and restructure the power industry and make it a viable sector. Any amount of reforms and restructuring of the power sector would however, remain totally ineffectual
without private sector participation in transmission and distribution. Most SEBs have become unwieldy, due to increase in generation capacity, massive transmission, and distribution network covering nooks and corners of state and ever-increasing consumer clientele. The management of such huge utilities involving technical, commercial, managerial, personnel, and industrial relations is becoming increasingly difficult.
Although various State governments have initiated action for the establishment of regulatory commissions, the progress till date is not very considerable. This is probably because of the long legislative processes involved in enacting a new reform compounded by the lack of political will and the strength to follow it through. Also, the prevalent labour policies and legislation in India are not conducive to retrenchment. Further, any new system replacing a long established one needs some time to demonstrate results and has to go through a period of progressive adjustments in the light of experience gained till it acquires an optimum structure.
Reforms needed in the power sector
It is widely felt that private power will be expensive which State Electricity Boards (SEBs) will not be able to afford. The success of the private power projects depends on the health of the buyers i.e. SEBs. As it is, some SEBs have signed up projects far in excess of their requirement giving rise to the belief that hardly half will be implemented successfully. When the power sector was thrown open to private investment, at the beginning of this decade, most state governments as also the Centre were of the view that costly power was better than no power at all. But after about seven years of debating on what kind of role the Centre, the FIs, the state governments, and the SEBs have to play, the wisdom has finally dawned on the policy-makers that SEBs cannot afford costly power.
Healthy developments are that the Central Electricity Regulatory Commission (CERC) is in place. It will kick-start growth in the power sector by rationalizing tariffs, formulating clear policies on subsidy and promoting environmentally benign policies. While this is a major development, state governments need to get their act together. They must replicate the central initiative by setting up State Electricity Regulatory Commissions (SERCs), corporatizing and unbundling SEBs and to top it all, creating a conducive climate of assured returns for private investors, apart from clearing off the massive Rs 17 000 crore dues to central power companies. This will be the first step to improve financial health, create confidence among the industry, agriculture and general public, which will, in turn, create credibility among private participants and accelerate the process of privatization. One can then ultimately look forward to a rapid expansion of the power sector, ensuring adequate and reliable power supply at affordable prices to consumers.
Furthermore, power utilities have to stop being vertically integrated monopolies and
need to separate generation from transmission and distribution so that they can rationalize their management. Though almost all the states have realized the need for power sector reforms, especially trimming their boards to reduce the flab, it is generally believed that the reforms process will take a while to complete. While the state of Orissa, has gone ahead with the unbundling process, others such as Haryana and Andhra Pradesh are in the process, and states such as Punjab, Maharashtra, Rajasthan, Uttar Pradesh, W. Bengal, and Gujrat are in the process of preparing the blueprints for the reform process.
The power sector, like many others, may be a case in mismanagement and under-performance. But one can hope for rectification. The Centre’s decision to constitute the CERC and SERCs, open up the transmission sector to private players, clear most fast-track projects and formulate a new mega and hydel policy gives inextinguishable hope of lighting up the next millennium.
The media charts power sector restructuring
Here are some headlines, reiterating the above observations.
Power Ministry moots phased reforms in SEBs February 1999
Centre urges Mahaarshtra SEB to consider recast February 1999
Panel set up for restructuring of the cash-strapped DVB January 1999
Taking a cue from the Maharashtra SEB, the Haryana SEB, the DVB, the Orissa SEB, and the Andhra Pradesh SEB are planning to automate their power distribution network so as to reduce defaults and induce efficiency December 1998
Uttar Pradesh cabinet clears SEB revampDecember 1998
Three-pronged scheme to unbundle GEB December 1998
Banks may be allowed to fund modernization of both SEBs and existing power projects, which have so long been funded through budgetary allocationsDecember 1998
Power sector reforms in Andhra Pradesh ready for take-offWorld Bank to give Rs 4600 crore for Andhra Pradesh SEB restructuringNovember-December 1998
Gujarat nod for power regulatory bodyKarnataka SEB draws up recast blueprintNovember 1998
Gujarat power tariff panel to be constituted soonUttar Pradesh begins major revamp in power sectorPunjab to set up power regulatory bodyOctober 1998
ADB to finance Madhya Pradesh power board revampMarch 1998
OECF decides to part-fund Haryana SEB restructuring programmeRs 861 crore OECF loan for Bengal power boardMarch 1998
OECF keen to invest in SEBs restructuring
August 1997
The Japanese multilateral aid agency, Overseas Economic Cooperation Fund (OECF), is keen to spread its financing in the power sector from specific projects to the restructuring of SEBs. After the World Bank and the Asian Development Bank (ADB) the Japanese agency is the third institution to seek entry in the restructuring of SEBs, for which it is looking at executing agencies like the Power Finance Corporation (PFC). OECF has committed as much as 46% of its $1.3 billion coming to India in the current financial year for the power sector.
MINISTRY OF POWER
MINISTRY OF POWERThe Ministry of Power started functioning independently with effect from 2nd July, 1992. Earlier it was known as the Ministry of Energy comprising the Departments of Power, Coal and Non-Conventional Energy Sources. Electricity is a concurrent subject at Entry 38 in List III of the Seventh Schedule of the Constitution of India. The Ministry of Power is primarily responsible for the development of electrical energy in the country. The Ministry is concerned with perspective planning, policy formulation, processing of projects for investment decision, monitoring of the implementation of power projects, training and manpower development and the administration and enactment of legislation in regard to thermal, hydro power generation, transmission and distribution. The Ministry of Power is responsible for the administration of the Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948, Electricity Regulatory Commission Act, 1998, Electricity Laws (Amendment) Act, 1998 (No.22 of 1998) Energy Conservation Act, 2001 and to undertake such amendments to these Acts, as may be necessary from time to time, in conformity with the Government’s policy objectives. The Ministry of Power is mainly responsible for evolving general policy in the field of energy. The main items of work dealt with by the Ministry of Power are as below: 1. General Policy in the Electric Power Sector and issues relating to energy policy. (Details of short, medium and long-term policies in term policies in terms of formulation, acceptance, implementation and review of such policies, cutting across sectors, fuels, regions and cross country flows). 2. All matters relating to hydroelectric power (except small/mini/micro hydel projects of and below 25 MW capacity) and thermal power and transmission system network. 3. Research, development and technical assistance relating to hydroelectric and thermalpower and transmission system network. 4. Administration of the Indian Electricity Act, 1910 (9 of 1910) and Electricity (Supply) Act, 1948 (54 of 1948), Electricity Regulatory Commissions Act 1998 and Electricity Laws (Amendment) Act, 1998 (No.22 of 1998) and Energy Conservation Act, 2001. 5. All matters relating to Central Electricity Authority, Central Electricity Board and Central Electricity Regulatory Commission.
6. Rural Electrification, power schemes in Union Territories and issues relating to power supply in the States and Union Territories. 7. Matters relating to the following Undertakings/Organisations etc.: (a) The Damodar Valley Corporation.(b) The Bhakra Beas Management Board (except matters relating to irrigation).(c) National Thermal Power Corporation Limited.(d) National Hydro-electric Power Corporation Limited.(e) Rural Electrification Corporation Limited.(f) North Eastern Electric Power Corporation Limited.(g) Power Grid Corporation of India Limited.(h) Power Finance Corporation Limited.(i) Tehri Hydro Development Corporation.(j) Nathpa Jhakri Power Corporation.(k) Central Power Research Institute.(l) National Power Training Institute.(m) Energy Management Centre.(n) Power Trading Corporation. 8. Other Public Sector Enterprises concerned with the subject included under this Ministry except such projects as are specifically allotted to any other Ministry or Department. 9. All matter concerning Energy Conservation and Energy Efficiency pertaining to thePower Sector.
ORGANISATIONS UNDER MINISTRY OF POWER In all technical and economic maters, Ministry of Power is assisted by the Central Electricity Authority (CEA) constituted under the Electricity (Supply) Act, 1948. Badarpur Management Contract Cell (BMCC), a subordinate office of this Ministry, is responsible for administering the Badarpur Thermal Power Station (BTPS) Management Contract between the Government of India and NTPC. The construction and operation of generation and transmission projects in the Central Sector are entrusted to Central Sector Power Corporations, viz. The National Thermal Power Corporation (NTPC), the National Hydro Electric Power Corporation (NHPC), the North Eastern Electric Power Corporation and the Power Grid Corporation of India Limited (PGCIL). The Power Grid is responsible for all the existing and future transmission projects in the Central Sector and also for the formation of the National Power Grid. Two Joint Venture Power Corporations namely, Nathpa Jhakri Power Corporation (NJPC) and Tehri Hydro Development
Corporation (THDC) are responsible for the execution of the Nathpa Jhakri Power Project in Himachal Pradesh and projects of the Tehri Hydro Power Complex in Uttaranchal respectively. Two statutory bodies i.e., the Damodar Valley Corporation (DVC) and the Bhakra Beas Management Board (BBMB) are also under the administrative control of the Ministry of Power. Programmes of rural electrification are provided financial assistance by the Rural Electrification Corporation (REC) under the Ministry of Power. The Power Finance Corporation (PFC) provides term-finance to projects in the power sector. Further, the autonomous bodies (societies) i.e. Central Power Research Institute (CPRI), the National Power Training Institute (NPTI) and the Energy Management Centre (EMC) are also under the administrative control of the Ministry of Power. A Power Trading Corporation (PTC) has also been set up in April, 1999 to catalyse development of mega power projects and to promote exchange of power with neighbouring countries.
ORGANISATIONAL SET-UP
Shri Anant Gangaram Geete is the Minister of Power with effect from 26.08.2002 and Smt. Jayawanti Mehta is the Minister of State of Power with effect from 13.10.1999. Shri. R.V. Shahi is the Secretary(Power).He is assisted by a Special Secretary, an Additional Secretary and five Joint Secretaries, including the Financial Adviser. The Additional Secretary looks after the work relating to Operation Monitoring (OM), Thermal, Energy Conservation, establishment matters of Central Electricity Authority, including that of the Central Power Engineering (Group A) Services. The allocation of work among the five Joint Secretaries in the Ministry of Power is as under: (i) Hydel, Coordination, Press and Publicity.(ii) Administration, Thermal and Distribution, including APDP and IT.(iii) Reforms & Restructuring, Vigilance & Security, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), Policy, Planning and External Assistance, Official Language.(iv) Accounts & Finance, Resource Planning, Monitoring of Financial performance of SEBs, and follow up action on the recommendation of Montek Singh Ahluwalia Committee & N.K. Singh Committee.(v) Investment Promotion Cell, Transmission, Powergrid Corporation of India Ltd. (PGCIL), Power Trading Corporation (PTC), Training & Research and Operation Monitoring. There is a Principal Accounts Office headed by the Controller of Accounts who in turn reports to the Financial Adviser in the Ministry of Power. Matters relating to reservations for SC/ST, Physically Handicapped and OBC are dealt by the respective Liaison Officers. Matters relating to recreation activities are dealt by
Power Sport Control Board. The total staff strength of the Ministry is 313. There are 46 women employees in the Ministry of Power (Sectt.)
Common Minimum National Action Plan for PowerThe Chief Ministers met on 16th October and 3rd December, 1996 to discuss and deliberate upon the issues pertaining to the power sector.
Recognized that the gap between demand and supply of power is widening.
Acknowledged that the financial position of State Electricity Boards is fast deteriorating and the future development of the power sector cannot be sustained without viable State Electricity Boards and improvement of operational performance of State Electricity Boards.
Agreed that reforms and restructuring of State Electricity Boards are urgent and must be carried out in a definite time frame.
Identified creation of Regulatory Commissions as a step in this direction.
Noted that the requirements of the future expansion and improvement of power sector cannot be fully achieved through public resources alone and it is essential to encourage private sector participation in generation, transmission and distribution.
Observed that the changing scenario in the power sector calls forfurther delegation of powers and simplification of procedures.
A national consensus evolved for improving the performance of the power sector in a time bound manner and the following was adopted.
I. National Energy Policy
The Government would soon finalise a National Energy Policy.
II. State Electricity Regulatory Commission
Each State/Union Territory shall set up an independent State Electricity Regulatory Commission (SERC).
To set up SERCs, Central Government will amend Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948.
To start with such SERCs will undertake only tariff fixation.
Licensing, planning and other related functions could also be delegated to SERCs as and when each State Government notifies it.
Appeals against orders of SERCs will be to respective High Courts unless any State Government specifically prefers such appeals being made to the Central Electricity Regulatory Commission.
III. Central Electricity Regulatory Commission
Union Government will set up a Central Electricity Regulatory Commission (CERC) CERC will set the bulk tariffs for all Central generating and transmission utilities.
Licensing, planning and other related functions could also be delegated to CERC as and when the Central Government notifies it.
All issues concerning inter-State flow and exchange of power shall also be decided by the CERC.
To enable setting up of CERC, Central Government will amend Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948.
IV. Rationalisation of Retail Tariffs
Determination of retail tariffs, including wheeling charges etc., will be decided by SERCs which will ensure a minimum overall 3% rate of return to each utility with immediate effect.
Cross -subsidization between categories of consumers may be allowed by SERCs. No sector shall, however, pay less than 50% of the average cost of supply ( cost of generation plus transmission and distribution). Tariffs for agricultural sector will not be less than fifty paise per Kwh to be brought to 50% of the average cost in not more than three years.
Recommendations of SERCs are mandatory. If any deviations from tariffs recommended by it are made by a State/UT Government, it will have to provide for the financial implications of such deviations explicitly in the State budget.
Fuel Adjustment Charges (FCA) would be automatically incorporated in the tariff .
There shall be a package of incentives and disincentives to encourage and facilitate the implementation of tariff rationalisation by the States.
V. Private Sector Participation in Distribution
State Governments agree to a gradual programme of private sector participation in distribution of electricity.
The process of private participation shall be initially in one or two viable geographical areas covering both urban and rural areas in a State and the State may extend this to other parts of the state gradually.
VI. Role of Central Agencies
The Central Government would make a comprehensive review of the role of Central Electricity Authority (CEA).
Techno-economic approval of competitively bid power projects will be simplified
and CEA shall not be concerned with capital cost, tariff and other commercial aspects of the project. Powers regarding approval of projects shall stand delegated to the States in respect of thermal power stations up to 250 MW. However, in respect of thermal projects beyond 250 MW capacity and other schemes, CEA s appraisal will continue in respect of planning and other related matters, such as to promote best optimal development of the river and its tributaries for power generation including proper hydro-thermal coordination the suitability of location and size of thermal power stations; fuel linkages; adequacy of power evacuation facilities covering inter-state and intra-state and the transmission schemes form an integral part of the National Power Grid for maximization of benefits for the country as a whole. Subject to such technical clearances which shall be accorded within two months State Governments will have powers to accord approval for power projects.
The role of FIPB will be minimised by putting as many projects on the automatic clearance route as feasible.
Government of India will issue transparent guidelines and delegate more powers for environmental clearance to State agencies. State agencies should equip themselves with requisite physical and technical expertise.
Government of India will delegate more powers to the states for issue of forest clearances. Statutory amendments will be made in the relevant Central statutes.
Ministry of Environment & Forests have proposed the following delegation to the States for environment clearance :-
(I) All cogeneration plants and captive power plants up to 250 MW
(ii) Coal based plants up to 500 MW using fluidised bed technology subject to sensitive areas restrictions
Power stations up to 250 MW on conventional technology
(iv) Gas/Naphtha based station up to 500 MW
VII. Autonomy to the State Electricity Boards
States will allow maximum possible autonomy to the State Electricity Boards. The State Electricity Boards will be restructured and corporatised and run on commercial basis.
VIII. Improvements in the Management Practices of State Electricity Boards
State Electricity Boards will professionalise their technical inventory manpower and project management practices.
IX. Improvement of Physical Parameters
Government of India will carry out necessary amendments in the relevant
Acts/Rules to allow private participation in transmission.
State Governments will provide higher allocation for early completion of public sector projects Renovation and modernization of existing power plants shall be done in a time bound manner. PFC and other financial institutions will give higher priority for funding of R&M schemes. Clearance to R&M projects will fully be delegated to the States and no clearance will be required from CEA.
PLF of those thermal power stations having less than 40% PLF at present would be increased by 3% annually, by 2% in case of those plants with PLF between 40 and 60%and by 1% for those plants with PLF over 60%. The
overall PLF in the State sector in the country must come up to a minimum of 65% and the national average to 70%by 2002 A.D. Compulsory metering at substations and on all major feeders would be introduced. Compulsory metering of all new electricity connections as also of connections to agriculture sector exceeding 10 HP will be undertaken and completed in two years. All electric supplies would be metered by 2002 A.D.
Compulsory annual energy audit of large consumers i.e.,100 KVA and above would be undertaken.
Time of the day metering would be introduced for big power consumers for better load management.
X. Cogeneration/Captive power plants
State Governments will encourage co-generation/ captive power plants. To facilitate evacuation of power from these plants to the grids, States shall formulate clear and transparent policies for purchase of power and wheeling charges which provide fair returns to the Cogeneration/Captive power plant owners. Captive power plants could also sell power to a group of industries as well as other categories of consumers in the said industrial zone or area. Wheeling of power from captive power plants to consumers located at a distance or through displacement basis shall be encouraged and the States will issue clear and transparent long term policies in this regard.
XI. Advance Action and High Priority for Hydro Projects
A national policy on hydro power development will be evolved by the Central Government which, inter-alia, would include development of mega hydro projects, both in the public sector and the private sector, at locations with substantial hydro potential, along with concomitant transmission facilities for evacuation of power to other Regions/states. States shall prepare a shelf of fully cleared hydro projects for implementation on high priority.
Special efforts will be made to promote hydro-electric projects in Himachal Pradesh and Jammu & Kashmir.
XII. Due Emphasis for Investment in North Eastern Region
Since there are geographical constraints in the North-Eastern region, the Government shall constantly review the public and private investments being made in that region so that these States get equitable shares in the investments in the power sector.
XIII. Allocation of liquid fuels
Government shall finalise the linkages of allocation of liquid fuels for power plants in consultation with State Governments soon.
XIV. Mega power projects at pit heads
Development of mega power projects at mine pitheads, both in the public sector and the private sector, with transmission facilities for evacuation of power to other Regions/ states would be encouraged.
XV Setting up of washeries.
Coal India Limited and its subsidiaries shall put up washeries at pitheads, wherever necessary. In case CIL cannot set up the washery private sector would be permitted to set up such washeries at pitheads. In either case, supply, washing and transportation of coal shall be on the basis of legally enforceable commercial contracts.
Initiatives taken by Ministry of Power
I. Major Legislative initiatives
The New Electricity BillIn keeping with the comprehensive approach, The Union Ministry of Power decided to come up with a comprehensive legislation so as to put together in one place all the legislative measures required to push the sector onto a trajectory of sound commercial growth and to enable the States and the Center to move in harmony and coordination. It takes into account the move towards a competitive scenario, where regulators on the one hand and private power utilities on the other shall play increasingly significant roles. The Bill provides a comprehensive yet flexible legislative framework for power development. The salient features of the Bill are:
The Central Government to prepare a National Electricity Policy in consultation with State Governments.
A thrust to complete rural electrification and provide for management of rural distribution by Panchayats, Cooperative Societies, non-Government organizations, franchisees etc.
Generation to be delicensed and captive generation to be freely permitted. Hydro projects would, however, need approval of the state governments and clearance from the Central Electricity Authority.
Transmission Utility at the Central as well as State level, to be a Government company-with responsibility for planned and coordinated development of transmission network. Provision for private transmission licensees.
Open access in transmission from the outset with provision for surcharge for taking care of current level of cross subsidy with the surcharge being gradually phased out.
Distribution licensees would be free to undertake generation and generating companies would be free to take up distribution licensees.
The State Electricity Regulatory Commission is a mandatory requirement.
Provision for license free generation and distribution in the rural areas.
The SERCs may permit open access in distribution in phases with surcharge for current level of cross subsidy to be gradually phased out along with cross subsidies and obligation to supply.
Provision for payment of subsidy through budget. For rural and remote areas stand alone systems for
generation and distribution would be permitted. Trading as a distinct activity is being recognized with the
safeguard of the Regulatory Commission being authorized to fix ceilings on trading margins, if necessary.
The State Governments have flexibility to unbundle the SEBs or continue with them as distribution licensees and State Transmission Utility.
The Bill does not prescribe any reform model, instead provides flexibility to the State Government to choose the model suiting to their conditions.
Metering of all electricity supplied made mandatory. An Appellate Tribunal to hear appeals against the decision
of CERC and SERCs. Provisions relating to theft of electricity made more
stringent
Energy Conservation Act, 2001 and other Demand Side Management Measures
Enacted on October 1, 2001, the Energy Conservation Act lays down concrete measures to ensure efficient use of energy and its conservation. The Act came into effect on March 1, 2002. A Bureau of Energy Efficiency (BEE) has been set up to make wide ranging regulations to further the objectives of the Act. Also, Central and State Governments have been empowered to facilitate and enforce efficient use of energy and its conservation. There are Provisions of penalties for failures and on the system of adjudication.
Standards and Labeling (S&L) have been identified as a key area for energy
efficiency improvement in line with the experience of the developed countries.
Standards and Codes (S&C) would be taken up for commonly used equipment in industries such as pumps, fans, blowers, compressors, boilers, etc. Efficiency increases to the order of 10% are foreseen in most of the industrial equipment.
Market Development Mechanism including Project Development will be taken up in the following areas:
Rural agricultural substation with private management. Municipal / Metro water pumping efficiency improvement. Programme for energy efficiency improvement in Government
buildings, commercial buildings, railways, defense establishments, etc.
Besides implementing the provision of the Act, a detailed Action Plan on Demand Side Management is being prepared.
II. Policy measures / initiatives taken Accelerated Power Development & Reform ProgrammeAccelerated Power Development & Reform Programme (APDRP), introduced in February 2001 is being used in a structured way in the areas of Distribution reforms and transition phase financing of State Electricity Boards undertaking reforms. The objectives in the distribution reform segment of the program are to achieve 100% metering, energy audit, better HT/LT ratio, replacement of distribution transformers, IT solutions relating to power flow at critical points to ensure accountability at all levels. These should lead to a qualitative improvement at the consumers end so as to raise the level of satisfaction besides improving revenue realization for the utilities. 63 circles have been selected at present in the country (in many cases one circle is bigger than a district) which are being developed as “Center of Excellence” for distribution reforms. The plan is to cover all the circles in a country in a phased manner. States have been asked to form District Level Committees for distribution and generation resource planning. A comprehensive technical manual on preparation of projects for improvement in distribution network has been brought out. States have to prepare detailed project reports for the identified circles, the progress of which is being closely monitored. In these 63 circles, efforts are on to supplement the efforts of the States for carrying out necessary improvements for which teams from certain central utilities are working in close coordination with the States. MOAs have been entered into with the States so that funds are released based on the performance of clearly specified and achievable milestones.
One Time Settlement of SEBs dues to central undertakings Most of the SEBs are on verge of financial collapse. As a result they have not been able to pay for the power supplied to them. Their total outstanding dues to central power utilities have risen to more than Rs. 41,000 Cr. After the Chief Ministers Conference in March'01 an Expert Group was constituted. The recommendations of the Expert Group have been endorsed by the Empowered
Group of Chief Ministers and have been approved by the Union Council of Ministers in March 2002. Thus the recommendations have been operationalised. As per the recommendations, the outstanding dues of SEBs towards CPSUs are being securtised by concerned States with the clear understanding that they will pay their current dues. This would help the States to clean up their books and enable them to raise resources to fund their development schemes. In addition the Central Utilities would also be able to meet the equity requirements and leverage them for their expansion schemes. The scheme is making headway as a substantial number of State Governments have consented to it in the context of meeting their payment obligations to NTPC, the CPSU with the largest accumulated receivables from the SEBs and successor utilities. The States have been given incentives to make it attractive for them.
Environment ManagementSeized of the current and emerging pressure, both local and global, on the front of environment management for the electricity sector, the Union Ministry of Power has taken a number of new initiatives in addition to strengthening the existing ones. Special Purpose Vehicle has been set up to effect compensatory forestation to facilitate expeditious clearance from Ministry of Environment and Forests (MOEF) for new power projects. An MOU in this regard with MOEF is under finalization. An Action Plan on Clean Development Mechanism has been approved and TERI has been asked to prepare a pipeline of projects. A Fly Ash Utilization Action Plan is proposed to be formulated after discussions with all stakeholders.
Facilitating Private Investment:
No ceiling on foreign equity participation in the power sector. Alternative Payment Security Mechanism evolved to accelerate Private
sector investment in power sector. Financing of IPPs linked to progress of reforms undertaken by State Govts.
Regarding private investment in power sector, there is a action plan to ensure financial closures of IPPs and this is being monitored by the Crisis Resolution Group chaired by the Union Minister for Power and attended by major financial institutions / Ministries and promoters of IPPs. Foreign Direct Investment (FDI) in transmission is being encouraged through two routes i.e. Joint Venture (JV) and Independent Private Transmission Co. (IPTC) with specific schemes having been identified under each head.
Encouraging FDI in Transmission - Two routes identified for encouraging private sector participation in transmission i.e. JV and IPTC routes. Specific transmission lines / schemes identified for execution under both the routes.
International Conference cum Business meetsTo deliberate on the critical issues and to enlist support and optimise investment in the power sector from foreign and domestic investors, five international conferences-cum-business meets were held through CII, FICCI and CPSUs of the power sector. The areas on which the conferences were held included:
I. Transmission, Energy Management & ConvergenceII. Distribution
III. Non fossil Fuel GenerationIV. Optimizing Existing capacity (R&M)
V. Fossil Fuel GenerationThe conferences brought together several ideas concerning the entire range of power development related issues. The business meets showcased the investment opportunity in the power sector. The response was encouraging. As an example business opportunities with ongoing bids of Rs.1800 crore were offered by NHPC and Tehri Hydro Development Corporation(THDC). Also pre-bid conference for Main Plant Package of NTPC Sipat Thermal Power Project offered business worth Rs. 6,000 crore.
Facilitating Captive Power CapacityGuidelines have been issued to all the States on Captive power development. This has been done keeping in view the needs of industry, the present availability of generating capacity including facilities for evacuation and the gestation time for creation of additional generation capacity with the objective that the industry should not suffer due to shortage of power in the overall interest of the economy. Standing Committee on Training and DevelopmentIt has submitted its report on National Training Action Plan for the Power Sector.
Standing Committee on Research and DevelopmentIt constituted to draw up a perspective Research and Development plan for the next fifteen years.
Rural Electrification Action Plan formulated for 62000 villages It is to be electrified by 2007 and 18000 remote villages to be electrified using renewable sources by 2012.
Reduce the cost of delivered power A Committee constituted to study to reduce the cost of delivered power has submitted its report and is under implementation.
Developing broad political consensus on ReformsThe Meeting of the Chief Ministers on Power held in March 2001 helped in convergence of views not only on broad parameters but also on certain methods to be adopted in different areas of reforms along with indicative time frames. The follow up actions have been going on and despite some resistance from certain pockets, the reform agenda has been moving forward. Structural changes have been given momentum and 22 States have signed MOUs under Accelerated Power Development & Reform Programme (APDRP) as an example of political convergence on reforms.
Countrywide Awareness CampaignA Mass campaign was launched to create general awareness amongst the public on the need for reforms in power sector. More than 2000 Road shows were held in the months of October-November 2001 in this regard. Students, opinion makers and common consumers were informed and sensitized about the need for reforms,
especially distribution reforms and checking for power theft. A very encouraging response was received from the grassroots level from all over the country.
III. Administrative steps undertaken Projects formulation and implementation
A Committee set up for financing of power projects for capacity addition during Xth and XIth Plans.
Monitoring mechanism strengthened with setting up of Power Projects Monitoring Committee under Sp. Secy. (Power) for identification of projects, scheduling and monitoring the implementation.
A Coordination Committee for Power set up for close interaction amongst the related Ministries ; MOP, MNES, DAE, Deptt. of Coal
Plan for National GridFor all the generating plants likely to be commissioned during the 10th Plan, transmission projects have been identified and in some cases are already under execution. The objective is to ensure that the inter-regional power transmission capability increases from the present level of 4850 MW to 30,000 MW by year 2012 and realize the objectives of National Grid. Towards the objective of formation of National Grid, a number of inter-regional schemes have been planned for phased development. In order to further strengthen the interconnection between regions, some more schemes have been approved which are under different stages of implementation and are expected to be commissioned by 2003.Looking into the future demand and availability of generation resources, a Perspective Transmission Plan has been drawn up indicating the major inter-regional transmission highways to be developed by 2011-12. This will ultimately lead to the formation of a strong National Grid. These highways are proposed to be established in phases matching with the requirement of inter-regional power transfer. Action Plan for Xth
plan period was formulated for R&M of old thermal and hydro units.
Ranking Study for Prioritizing Hydro Power Development and other Allied Measures
A preliminary ranking study of 399 hydro schemes has been prepared. These schemes, with an aggregate installed capacity of about 107,000 MW, have been prioritized in all the six River Systems of the country. This will be the document for basin-wise development of hydro capacity. The policy thrust is to improve the hydro-thermal mix so as to optimally meet the peak and base load requirements. Some procedural improvements have been brought about to curtail the gestation period of hydro projects and further improvements are under consideration. The thrust is to improve the hydro-thermal mix so as to optimally meet the peak and base load requirements. Some procedural improvements have been brought about to curtail the gestation period of hydro projects and further improvements are under consideration. The Preliminary Ranking Study has been released on 5th February 2002. The identified potential hydroelectric sites in the various river basins have been prioritized in the reports in the order of their attractiveness for implementation. The ranking study would serve as guide to the potential developers to choose hydro schemes for
investigations and implementation. Development of mini hydro and run of river projects Action initiated with MNES for development of mini hydro and run of river projects.
Power Reforms : Focus on Distribution Reforms In the Chief Ministers Conference held in March 2001 all States have agreed
for reforms and restructuring of power sector. Development of 63 Distribution Circles as Center of Excellence for
distribution reforms. Funds being provided under APDRP. These centers would act as model for replication in other districts.
Funds under APDRP, cumulative as till end April ’02 : Sanctioned Rs. 1435 Cr.Disbursals Rs. 1404 Cr.
100% metering and effective Management Information System (MIS) for monitoring at feeder level backed up by detailed energy audit to bring accountability into system at all levels.
Tariff rationalization by SERCs (21 States have set up SERCs and 12 have issued tariff orders).
Tariff policy for Regulators Committee formed under Secretary (Power) with Chairman, CEA to workout the policy.
District Level Committees proposed for Distribution Reforms monitoring and development of energy resources. Letters have been sent to all CMs of States.
Two years Action Plan is being chalked out for turnaround of SEBs by eliminating revenue deficits.
Distribution improvement plans/ projects for all districts in the country - Technical manuals have been finalized and submitted by CEA. It is also being converted into users/ management manuals.
A Committee has been set up to suggest strategies and measures for attracting private sector in distribution and drawing up guidelines for privatization.
I.T. enabled solution is being worked out by Committee headed by MD, Infosys for Model MIS for monitoring at feeders level and fixation of responsibility.
Facilitating Power trading
PTC role being strengthened to facilitate trading of power. It has already started operations.
Sustainable power development Action Plan has been finalized on CDM (Clean Development Mechanism) Action Plan on Fly Ash utilization is under finalization.
IV. Other measures / steps taken
All NTPC stations have achieved ISO 14001 certification except for Unchahar & Tanda, which are in process.
A committee set up in CEA for working of Energy Security and Fuel policy. Inter ministerial reviews being held for finalization of the report.
Transparency and guidelines in hydro tenders - A Committee formed under Shri Harish Salve, the Solicitor General of India for recommending guidelines for hydroelectric power projects vis a vis contracting & executing procedures, to enable control time & cost overrun & ensure greater transparency in contracting as well as execution.
CENTRAL ELECTRICITY AUTHORITY
CENTRAL ELECTRICITY AUTHORITY
ORGANISATION OF CEA
1. Organisation
The Central Electricity Authority (CEA) is a statutory organisation constituted Under Section 3(1) of the Electricity (Supply) Act, 1948. It was established as a part-time Body in the year 1951 and made a full time body in 1975. It is an attached office of Ministry of Power, Government of India.
In all technical, financial and economic matters, the Ministry of Power is assisted By CEA. CEA is responsible for technical co-ordination and supervision of programmes and is also entrusted with a number of statutory functions. CEA is headed by a Chairman, who is also Ex-officio Secretary to the Government of India and has six full-time Members, who are of the rank of Ex-officio Additional Secretary to the Government of India. These are – Member(Thermal), Member(Hydro), Member (Economic & Commercial), Member (Power System), Memer (Planning) and Member (Grid,Operation & Distribution). CEA has five Part-time Members, Member (Legal) being one of them. Chairman, CEA is assisted by Secretary, CEA in the discharge of CEA’s statutory functions.
The broad functional areas of work of Chairman, Members and the Secretary are as under:-
Chairman
Head of the organisation – Overall development of Power Sector in the country.
Member (Planning) Formulation of national power policies; integrated resource planning; optimisation of resource utilization; formulation of short, medium & long term power plans; long and short term demand forecasting & sensitivity studies, material and manpower planning; coal, oil & gas linkages to power projects; surveys for power demand growth; identification and testing of co-lateral parameters for economic model for demand forecasting; collection, compilation and publication of statistics of Power Sector; securitisation of resources/fuel availability and fuel efficiency with the support of emerging technologies; modernisation of project management, concepts of skill development, pro-active technology forecasting approaches; research & development in Power Sector and co-ordination with multiple agencies involved in Research & Development activities, etc.
Member (Thermal)
Overall thermal power development in the country, updating, development and Evaluation of thermal technologies; design & engineering of thermal projects; quality Assurance standards and plan; preparation of model documents and
standards; technical Appraisal and firming of inputs of thermal projects; investigation, construction & stablization,Monitoring of thermal projects and suggesting remedial measures to problems involved, Renovation, modernisation and life extension programmes; energy conservation; environmental Aspects of thermal projects etc.
Member (Hydro)
Overall hydro power development in the country; technical appraisal of hydro-Electric projects; integrated plannning for utilization of water resources; assessment of Hydro potential; assistance to States on investigation and project report preparation;Construction & investigation monitoring of hydro projects and suggesting remedial Measures to problems involved; updating, development & evaluation of hydro Technologies; environmental aspects of hydro projects; quality assurance plans & Standardisation, design and engineering of hydro projects; renovation, modernisation & Uprating of hydro stations; co-operation with neighbouring countries of Nepal, Bhutan And Myanmar for development of water resources for mutual benefits etc.
Member (Power Systems)
Planning and development of Transmission and Distribution facilities consistent With national power plans; monitoring of rural electrification; Transmission & Distribution loss reduction; optimistion of distribution network; appraisal of Transmission projects; transmission technology development; design & engineering;Standardisaion and preparation of model document; renovation and modernisation of Transmission scehemes; construction monitoring of transmission projects; work relating to Accelerated Power Development & Reforms Progrmme (APDRP) including 100% Metering, energy accounting, evaluation of benefits, Quality Control, etc.
Member(Grid, Operation & Distribution)
Formulation of policies for safe, secure and economic operational of regional grids;Integrated operation, control and co-ordination of five regional grids through Regional Electricity Boards; monitoring of delivery of shares from Central Sector projects; intra And inter-regional exchange of power; emergency power assistance; energy accounting On daily and monthly basis; load generation balance and grid disturbance studies; grid Code; tariff principles of bulk generation & transmission, matters relating to Telecomunication in Power Sector, telecommunication data acquisition and software Support; operation monitoring and performance review of thermal power stations; co-Ordination of fuel oil/liquid fuel supplies; coal quantity and quality control; updating of Maintenance procedures; implementation of M/s. ECC Inc. recommendation of bulk power and availability based tariff; generation data collection; performance analysis; Maintenance monitoring etc.
Member (Economic & Commercial)
Economic evaluation of power policies and projects; appraisal of tariff, financial Packages, financial parameters, Interest. During Construction & completed cost;Examination of bulk power tariff structure, performance of SEBs; scrutiny for import Duty exemption; certification and foreign exchange release; co-ordination for externally Aided schemes; examination of Power Purchase Agreements, advice on legal matters;Inspection of existing electrical installations in Union Territories and Central Government Departments; investigation of accidents on electrical installations and suggesting Remedial measures for their minimisation nd prevention.
1.1 Part-time Members of CEA
1. Dr. S.S.Chahar, Additional Legal Advisor, Ministry of Law, Justice & Company Affairs – Member (Legal).
2. Shri A.C. Gupta, Commissioner(Indus), Ministry of Water Resources.
3. Shri V. Rajagopalan, Joint Secretary, Ministry of Environment & Forests.
4. Shri Shivraj Singh, Joint Secretary(Refineries), Ministry of Petroleum & Natural Gas.
5. Shri T.K. Ghosh, Director, Ministry of Coal.
Secretary
The Secretary, CEA appointed by the Government, assists in the discharge of CEA’s statutory functions. The Secretary also assists the Chairman in all matters Pertaining to administration and technical matters including techno-economic appraisal & conrurrence of power projects and Human Resource Development etc.
2. Functions of CEA
The Authority is generally to exercise such functions and perform such duties and Act in such a manner as the Central Government may prescribe under the Rules framed Under Section 4B(1) of the Electricity (Supply) Act, 1948 or by issue of written Directions jin matters of policy involving public interest under Section 4A(1) of the said Act. Under Section 3(1) of Act, CEA is particularly charged with the following functions:
(i) To develop a sound, adequate and uniform national power policy, formulate short-term and perspective plans for power development and co-ordinate the activities of planning agencies in relation to the control and uitlisation of national power recoures;
(ii) To act as arbitrators in matters arising between the State Govt. or the Board and a Licence or other person as provided in the Act.
(iii)To collect and record the data concerning generation, distribution and utilisation of power and carry out studies relating to cost, efficiency, losses, benefits and such like matters;
(iv) To make public from time to time information secured under this Act and to Provide for the publication of reports and investigations;
(v) To advise any State Govt., Board, Generating Company or any other agency Engaged in generation or supply of electricity on such matters as will enable such Govt., Board, Generating Company or agency to operate and maintain the power System under its ownership or control in an improved manner and where System under its ownership or control in an improved manner and where Necessary in co-ordination jwith any other Government, Board, Generating Company or other agency owing or having the control of another power system;
(vi) To promote and assist in the timely completion of schemes sanctioned under Chapter V of the Act.
(vii) To make arrangements for advancing the skill of persons in the generation and Supply of electricity;
(viii) To carry out or make arrangements, for any investigation for the purpose of Generating or transmitting electricity;
(ix) To promote research in matters affecting the generation, transmission and supply of electricity;
(x) To advise the Central Govt. jon any matter jon which its advice is sought or makeRecommendation to that Govt. on any matter if, in the opinion of the Authority,The recommendation would help in improving the generation, distribution and The utilisation of electricity; and
(xi) To discharge such other functions as may be entrusted to it or under any otherLaw.
Under the provisions of Electricity (Supply) Act, 1948, the Central Govt. has Further added few more functions to the Central Electricity Authority. These are:
- Co-ordination of research and development in the power generation field;
- Evaluation of financial performance of the SEBs constituted under Section 5 and Undertaking of studies concerning the economic and commercial aspects of the Power industry as well as analysis of tariff structure in the power industry;
- Techno-econonmic appraisal of power projects;- Promotion of inter-State and Joint Sector power projects.
Apart from the above functions provided under the Electricity (Supply) Act, 1948,CEA also undertakes design and engineering of power projects with a view
to develop in-House technical know-how and also to assist the State Electricity Boards, generating Companies & State authorities requiring such assistance under Section 3(1)(v) of the Electricity (Supply) Act, 1948. In addition, the Secretariat for Central Electricity Board (CEB) and safety inspection of centrally owned/controlled electrical installations as perIndian Electricity Rules, 1956 is also vested with CEA.
As per studies carried out by Central Authority of India (CEA) during 1978-87, the economically exploitable hydro potential from major/medium schemes in the country ahs been assessed as 84044 MW at 60% load factor corresponding to an qapproximate installed capacity of 1,50,000 MW from 845 schemes. Out of 845 schemes identified by CEA, about 288 schemes with an agreegate installed capacity of about 42000 MW are either under operation/implementation or approved by CEA. Further, about 164 schemes having an agreegate installed capacity of 2300 MW each having individual installed capacity of 25 MW & less, stand transferred to MNES for development. Thus about 400 schemes having total likely installed capacity of about 100000 MW are yet to be taken up for their systematic development.
A vision paper highlighting comprehensive approach for development of entire hydropower potential in the country was prepared by CEA & submitted to the Governtment of India during March 2001. the vision paper gives a road map for expiditing the hydro development so as to harness the complete assessed potential by 2025-26. it has been assessed that to develop the remaining entire hydro potential, about Rs.5,00,000 crores would be required based on the present day cost & all survey & investigations would need to be completed by 2016-17 for which additional amount of Rs.5000crores mat be required.
With an objective of taking up the hydro development in phased/systematic manner, CEA undertook an exercise to carry out ranking studyof undeveloped hydro sites so as to have a shelf of prioritised hydro schemes. The ranking study has been divided into two stages. Stage-I, preliminary ranking study & stage-II, detailed ranking study. Under stage-I, the inter-se-prioritisation of hydro schemes have been carried out based on the desk top studies & weightage criteria for various aspects involved in the development of hydro projects.
The weightage criteria adopted by CEA for preliminary ranking study was discussed in detailed at a consultation forum involving various organisations from different spheres i.e. technical, commercial, financial insitutions, confederations etc…
At first instance, alnd use aspects for Indus Basin have been addressed based on satellite maps obtained from NRSA & inputs obtained from state authorities. The ranking study would be reviewed after obtaining satellite imageries/maps from NRSA for other basins too. The rpesent ranking may undergo some change based on the inputs emerging from land use aspects of the schemes.
The preliminary ranking study would form a base for undertaking the detailed ranking study. Based on the outcome of preliminary ranking study, detailed ranking study would be carried out for all the basins considering submergence, land use aspects, broad geological & economic considerations. After completion of the detailed ranking study, preparation of pre-feasibility reports could be taken up by the concerned authorities.
HYDRO POTENTIAL & STATUS OF DEVELOPENT
As per the re-assessment studies carried out by CEA during 1978-87, hydro potential of 84044 MW at 60& load factorfrom 845 schemes have been identified. Out of this potential, only 16.7% have been developed so far & another 6.3% are under various stages of development. Thus the balance hydro potential of the order of about 77% is yet to be harnessed.
Out of 845 schemes identified by CEA, at present, 288 HE schemes with an agreegate installed capacity of about 82000 MW are either under operation/implementation or approved by CEA.
The balance schemes include 164 schemeseach of which having an installed capacity of 25 MW or less, development of which stands transferred to MNES. Total installed capacity of such schemes is about 2300 MW. Further studies were therefore proposed to be carried out for about 400 schemes having total likely installed capacity of about 100000 MW.
OBJECTIVE OF THE RANKING STUDY
For development of remeining capacity of about 100000 MW out of 150000 MW available hydro power capacity in the country in the phased manner & to have a shelf of prioritised schemes for further invastigation & implementation, it has been proposed to carry out ranking studies for the basin wise balance schemes.
APPROACH FOR SYSTEMATIC DEVELOPMENT OF HYDRO POTENTIAL
PHASE I: VISION PAPER
A vision paper highlighting comprehensive approach for development of 150000 MW of hydro power corresponding to the assessed potential of 84044 MW was prepared by CEA & submitted to the Ministry of Power in March 2001.
The vision paper outlines the approach & provides a road map for development of the balance untapped potential of the country by the year 2025-26. the paper analysed an anticipated demand supply scenario, likely ot prevail in the country by making use of the results of long term perspective plan studies carried out by CEA. The cost of development of the remaining untapped potential in the country has been estimated as about Rs.500000 crores while requirement of funds by 2016-17 for carryibg out S%I activities would be of the order of Rs. 5000 crores. It
is assessed that the hydro share in the system would gradually improve to about 32% by 2025-26.
PHASE II: PRELIMINARY RANKING STUDY
The prioritusation of the schemes yet to be developed based on the available data & weightage criteria for various aspects involved in development of a hydro project has been done under this phase. This exercise would provide inter-se-prioritisation of schemes to be undertaken for implementation in a systematic manner. This will form a base for detailed ranking study & later on, for preparation of pre-feasibility reportrs.
Ranking study is generally based on desk studies of all secondary tropographical & hydrological data. For this porpuse, latest topo sheets have been obtained from survey of India. Sattellite maps from NRSA & inputs frm sate authorities have also been obtained from Indus Basin & for balance Basins, these details would be obtained & incorporated at the time of detailed ranking.
Ten major aspects pertaining to development of the identified projects, which play vital role in the implementation of the hydro projects, have been adopted in the criteria considered for ranking study. For each of the criteria, certain marks with weightage ranging from minimum of 6 to maximumof 15 has been alloted to its applicability to each individul project. These aspects are R&R aspects, International aspects, interstate aspects, potential of schemes etc…
Depending upon the scores/marks alloted, the schemes have been catagorised into A, B, C, D, E as below.
Ctagory/Grade Total Score (Marks)
A 80 & above
B 60 to 79
C 40 to 59
D 20 to 39
E Up to 19
PHASE III: DETAILED RANKING STUDY
Based on preliminary ranking study, furhter stidies would be carried out for schemes considering their submergence, land use aspects, geological aspects & so on so as to arrive at a detailed/final ranking. After completion of the detailed ranking studies, the pre-feasibility reports (PFRs) of selected schemes could be prepared by concerned authorities.
CONSULTATION FORUM
A meeting was organised on 12/09/2001 in the form of consultation forum to discuss the methodology adopted & weightage given to different aspects of the hydro developmet for the ranking studies undertaken by CEA. The organisations from different spheres ranging from technical organisation like CWC, GSI, SOI, NHPC etc…to financial institution like ADB, ICICI etc… & associations like PHDCCI, CII as well as various concerned ministries/department like MOEF, MOP, MEA participated in the discussions. It was concluded at the end of the meeting that the weihjtage criteria taken preliminary ranking study by CEA cover almost all the aspects of hydro development & are appropriate for studies at this stage.
ABOUT THE REPORT
The report on ranking study has been divided into seven volumes. Volume I covers the executive summary, general report incorporating physiographic features of India, major river systems, hydro potential & its status of development, synopsis of vision paper, methodology/criteria adopted for ranking, basin wise final gradation of schemes etc… A map showing all six river ayatems of the country has also been incorporated in this volume.
Volume II to VII cover ranking studies for Indus Basin, Ganga Basin, Brahmputra Basin, West Flowing River System & Central Indian River System respectively. Each volume incorporates information about potential of basin & its development, schemes identified, present status, balance schemes to be developed & their ranks according to the weightage criteria. The report analyses the basin as a whole & incorporates conclusion & recommendations for each basin.
PHYSIOGRAPHIC FEATURES OF INDIA
Physiographically Indiacan be divided into three major divisions namely Himalayas & their associated young fold mountains, the ancient block of Peninsular India & the Indo-Gangetic plains lyieng between the two. The three regions are vastly different in geological history & in character of their terrain. Out of these three divisions, the Himalayan range comprising Greater Himalayas, the Lesser or Middle Himalayas & the Shivalic range posses vast hydro potential. Greater Himalayas being inaccessible provide little opprtunity to harness hydro potential but they do act as reservoirs of water of all the rivers of this range. This leaves the other two ranges viz. Lesser Himalayas & Shivalc as potential source for developoment of hydro electric potential.
MAJOR RIVER SYSTEMS
For the purpose of hydro electric potential survey, the country has been clessified into six major river systems mainly Indus, Brahmaputra, Ganga, Central Indian River System,East Flowing River System & West Flowing River System. These
river systems have been further divided into 49 Basins. The detail of these river systems/basins are given below:
INDUS BASIN
The Great Indus Basin draining areas in the states of J&K, Himachal Pradesh & Punjab is one of the major basins of the country. The Great Indus Basins comprises six malor rivers namely Indus, Jhelum, Chenab, Sutlej, Ravi & Beas. Rising in Tibet at an elivation +5182m behind the mountains of Great Himalayas, Indus river traverses a total of about 2880 Km. Of which about 1114 Km. lies in India. The total area itercepted by these 6 major rivers is about 1106 lakh sq. Kms. out of which more than 107 lakh sq. Kms. lies in Indian territory.
GANGA BASIN
The ganga basib with about 1/4rht of the total geographic area fo the country has the total drainage area of about 10.5 lakh sq. Kms. out of which about 88.7 lakh sq. Kms. lies in India the basin covers ares in U.P, Punjab, Hryana, H.P, Rajasthan, M.P, Bihar, W.B & Delhi. The basin comprises rivers like Upper Ganga, Upper Yamuna, Lower Ymuna, Chambal, Sarda-Gomti-Ghagra, Sone, Betwa-Sind, Kosi-Gandak-Mahananda, Lower Ganga & Damodar.
BRAHMAPUTRA BASIN
The Great Brahmaputra basin with a total drainage area of about 5054 lakh sq. Kms. of which about 2.65 lakh sq. Kms. lies in India, covers the states of Arunachal Pradesh, Assam, Meghalaya, Manipur, Tripura, Mizoram, Nagaland, Sikkim & a substantial part of West Bengal. The Great Brahmaputra basin, including Barak & other South flowing rivers of North Eastern states, has been divided into 9 sub-basins. The rivers in this basins are Upper Brahmaputtra, Teesta, Subansari, Kameng, Kalang, Dihang-Dibang, Luhit, Lower Brahmaputra, Barak & neighboring river system.
CENTRAL INDIAN RIVER (CIR) SYSTEM
The Central Indian river system involves a total of 105 rivers with a total river course of about 19780 Kms. This system with adrainage area of about 7.6 lakh sq. Kms. contains 8 major river basins namely Narmada, Tapi, Subernrekha, Brahmani-Baitarni, Mahanadi, Sabarmati, Mahi & Luni-Banas & other rivers of Rajasthan & Gujrat.
WEST FLOWING RIVER (WFR) SYSTEM
The West Flowing River system of south has a length of about 1540 Kms. with width varying from a minimum of 40 Kms. to a maximum of 130 Kms. & covers almost whole of Kerala. Goa, Union Territory of Daman & Diu, parts of Tamil Nadu, Karnataka, Gujrat & Konkan region of Maharashtra state. This basin comprises of rivers like Minodhola-Damanganga, Vaitarna-Savitri,
Vashishta-Tillari, Mandvi-Sharavathi, Varahi-Kuttiyadi, Baypore-Periyar & Pamba-Pariliyar.
EAST FLOWING RIVER SYSTEM
The east Flowing River system of South constitutes the largest river system of the country draining a total catchment of about 9 lakh sq. Kms. & comprises major interstate basins of Godavari, Krishna, Cauvery & other rivers. In this river systems, these three rivers account for a major part of about 73% of the entire drainage area. This river system consists f rivers between Mahanadi & Godavari, Godavari, rivers between Godavari & Krishna, Krishna, rivers between Krishna & Penner, Penner, rivers between Penner & Cauvery, Caauvery & rivers beetween Cauvery & kannyakumari.
HYDRO POTENTIAL OF INDIA & ITS ASSESSMENT
FIRST SURVEY (1953-59)
The first systematic & comprehensive study to assess the hydro electric resources in the country was undertakrn during the period 1953-1959 by the power wing of the erstwhle central water & power commision on the basis of prevailing technology of hydro construction & the constraints imposed by tropographical & hydrological considerations etc… These studies placed the economical utilizable hydro power optential of the country at 42000 MW at 60% load factor.
RE-ASSESSMENT STUDIES
The re-asessment studies of the hydro electric potential of the country, completed by central electricity authority in 1987, have placed the hydro power potential at 84044 MW at 60% load factor. A total of 845 hydro electric schemes have been identified in the various basins which will yield 442 billion units of electricity. With seasonal energy, the total energy potential is assessed to be 600 billion units per year. In addition, the reassessment studies have also identified 56 sites for Pumped Storage Schemes (PSS) with total installation of about 94,000 MW. The hydro potential of 84044 MW at 60% load factor when fully developed would result in an installed capacity of over 1,50,000 MW on the basis of probable average load factor.
The Great Indus, the Ganga & the Brahmaputra with their innumerable tributeries originating from the Himalayas costitute about 70% of the country’s assessed hydro power potential. The peninsular plateau, flanked on one side by the eastern ghats & on the other side by the western ghats is a receptacle of enourmous hydro power.
ASESSMENT OF SMALL HYDRO POTENTIAL
In addition to potential of medium & major hydro schemes, a sizable potential also exists for development of micro, mini & small hydro schemes on revulets & canal drops. A systematic study for the development of small hydro potential was
undertaken by CEA during 1987 & completed during June,1996. As per this assessment,1512 small hydro electric schemes having agreegate installed capacity of above 6782 MW on canal falls/rivers have been identified.
PRESENT STATUS OF HYDRO DEVELOPOMENT
On all India basis, as on 01/09/2001, the hydro electric schemes in operation accounts for only 16.7% & those under execution for 6.3% of the total potential. Thus the bulk of the potential remains yet to be developed. The maximum exploitation has been achieved in west flowing rivers of South India at 59.94% & the least development is in respect of Brahmaputra basin at 1.54% though this basin has maximum potential.
Out of 845 schemes identified by CEA in reassessment studies, at present, 288 hydro schemes with an agreegate installed capacity of 42000 MW are either under operation/implementation or cleared by CEA. The balance schemes include about 164 schemes each of which having an installed capacity of 25 MW or less, development of each stands transferred to Ministry of Non-Conventional Energy sources. Total installed capacity of such schemes is about 2300 MW. Thus about 400 schemes having total likely installed capacity of about 1,00,000 MW are yet to be considered for development.
STRATEGY FOR DEVELOPMENT OF BALANCE HYDRO POTENTIAL
It is proposed to take up the balance 400 schemes for systematic development of remaining capacity of about 1,00,000 MW out of which 1,50,000 MW are available hydro power capacity in the country in the phased manner.
PHASE I- VISION PAPER
A vision paper highlighting comprehensive approach for development of 1,50,000 MW of hydro power corresponding to the assessed potential of 84044 MW was prepared by CEA & submitted to Ministry of Pwer during March 2001. this gives a road map for expiditing hydro development so as to harness total potential by 2025-26.
PHASE II- PRELIMINARY RANKING STUDY
The prioritization of the schemes yet to be developed based on the available data & weightage criteria for various aspects involved in development of a hydro project has been done under this phase. This would provide inter-se-prioritisationof schemes to be undertaken for implementation in a syatematic manner. Ranking study has been made generally based on desk studies of all secondary topographical & hydrological data. For this purpose, latest topo sheets have been obtained from Survey of India. Land use aspects based on the Satellite maps obtained from NRSA & inputs from stste authoritieshave also been addressed for Indus Basin at first instance. This study will form a base for detailed ranking study & later on, for preparation of pre-feasibility reports.
PHASE III- DETAILED RANKING STUDY
Based on the preliminary ranking study, further studies would be carried out for schemes considering land use aspects, geological aspects, cost estimates, tentative tarrif, etc…so as to arrive at detailed or final ranking of the schemes for all the basins.
So finally we can say that based on the preliminary ranking study, about 400 schemes with an agreegate installed capacity of about 1,07,000 MW have been prioritised in all the 6 River Systems of the country. Out of this, 98 schemes with probable installed capacity of 15650 MW fall under “A” category, 247 schemes with probable installed capacity of 69850 MW under “B” category & 54 schemes with probable installed capacity of 21420 MW under “C”
HISTORICAL PERSPECTIVE &
CURRENT STRUCTURE OF THE COMPANY
HISTORICAL PERSPECTIVE & CURRENT STRUCTURE OF THE
COMPANY
DESIGN TOMORROW’S ENERGY &TRANSPORT SOLUTIONS
Improving conditions for millions of peopleworld wide is the mission ALSTOM has set itself. With this challenge in mind, the company is developing energy & transport infrastructure for tomorrow, drawing from its wealth of technological expertise.
The electrical energy industry requires new & innovative solutions to manage increasingly complex networks & generate cleaner, more flexible & more cost effective energy. ALSTOM is developing services that meet these new needs.
The huge growth of cities, coupled with rising needs for mobility are behind new market demands for improved transport solutions.ALSTOM has already contributed extensively to the renewal of transport systems & prides itself on understanding& anticipating cities & passenger expectations; accessibility, comfort, speed & safety.
GLOBAL SPECIALIST IN ENERGY & TRANSPORT INFRASTRUCTURE
ALSTOM is a global specialist in energy & transport infrastructure. The company serves the energy market through its activities in the field of power generation, power transmission & distribution, power conversion & electrical contracting & the transport market through it’s activities in rail & marine.
ALSTOM offer it’s customers a complete range of innovative componenets, systems & service convering design & manufacture as well as commissioning & long term maintenance & has unique expertise in systems integration, management of turnkey projects & application of advancved technologies.
A GLOBAL COMPANY
Following the full integration of the power generation activities, ALSTOM today has annual sales in excexx of $22 billion & employes more than than 1,40,000 people in over 70 countries.
The company is listed on the Paris, London & New York stock exchanges.
POWER – THE GLOBAL FULL SERVICE PROVIDER
To strengthen it’s position as a leading player in the power generation market, ALSTOM required in May 2000 ABB’s 50% share in their recently formed joint company, now renamed ALSTOM Power, a new ALSTOM sector. Having supplied 20% of the world’s total installed power generation capacity, ALSTOM is one of the world’s leading suppliers of turnkey power plents, all types of turbines ( gas, steam, hydro ), generators, boilers, electrical control systems, environmental protection systems as well as a complete range of services, including plant modernisation & long term operation & maintenance, project development & financing.
As the full service provider in power generation, ALSTOM offers an extensive range of competitive products & services which also set leading standards in environmental impact. Through increased R&D investment in new & existing product development, ALSYOM contineus to provide customers with the innovative solutions they need to remain competitive.
TRANSMISSION & DISTRIBUTION
One of the world leaders in power transmission & distribution, ALSTOM is present at all stages in the supply chain of electricity. From the power plant to the end user, ALSTOM offers the widest & most reliable range of products & services in the market. It’s power delivery systems are designed to meet the requirements of utilities, industries, local authorities & infrastructure companies. At the lesding stage of research, ALSTOM develops tomorrow’s services such as Energy Network Management & solution in harmony with the environment.
TRANSPORT
Populations are growing & cities are expanding throughout the world. In this context, mobility is a key factor in economic growth & dvelopment. ALSTOM contributes greatly to this mobility by providing a full range of rail solutions.Since the acquisition of a major share of Fiat Ferroviaria, the company has become one of the rail industry’s biggest supplier of products, services & systems, within an 18% market share world wide in the domains in which it is active.The company is renowned for it’s comprehensive range of state-of-the-art rolling stock, including TGV’s & high speed tilting trains for inter city operations, tramways & metros of urban transit, & locomotive & freight wagons. It also provides train control systems, train life management services, railroad maintenance & turnkey or full concession transport system solutions. ALSTOM has been able to anticipate world trends & offer it’s customers innovative solution at the lowest cost, largely by developing & applying it’s unique concept of modularity, optic design, which makes the most of standardization & customization.
MARINE
The cruise market has taken off in recent years. With an order book which has reached record levels, ALSTOM ahs become the world leader in cruise ship building , with 33% f the market. The company build ship with high added value their performance, reliability & spedd are constantly improving while increasingly respecting the environment.ALSTOM’s expertise is based on innovation, its keystone is control over construction costs & lead times.
CONTRACTING
ALSTOM is the Eurean leader in systems integration, associated services, ellectrical & technical intallations applied to energy, transport & communication infrastructures, process industries & buildings. With expertise in high & low voltage applications, automated systems, mechanical applications, as well as air conditioning engineering, water systems, communication networks & intigration of new technologies, ALSTOM provides high performance solutions adapted to the specific needs of each client, whether for installation, maintenance & global service.
POWER CONVERSION
ALSTOM is an expert in converting electricity into useable energy. It markets comprehensive solutions & associated services for the automated running of manufacturing processes with a range of high performance products, motors. Drives, generators & power electronic equipment.
GLOBAL SERCICE COMMITMENT
ALSTOM power hydro understands the importance of being capable & available at all times. Keeping the plant up & renning at peak performance requires a service team that is fully commited. The key factor is the availability of the right people who are responsive, solution oriented & capable of a total plant approach.
RANGE OF SERVICES
There is a general trend among power producers to allow suppliers to take increased responsibility for service & maintainance.LASTOM power is well suited in this area & has developed specific packages for hydroopwer plants basd upon its extensive experience. These packages may be grouped & tailored made to provide total solutions that meet your requirements.
Maintainance support Breakdown support Technical support Customer support line Spare parts
O&M process improvements Training Maintenance engineering Remote & implimantation
Availability focus package Lifetime extensions Condition monitoring Full reliability package
Long term service agreements Planneed maintenance Total maintenance Full O&M
TAILOR MADE SOLUTIONSALSTOM can provide tailor made service solutions from training, condition monitoring, maintenance engineering support & similar solutions up to total maintenance outsourcing & full O&M.
LOCAL PRESENCE
ALSTOM powr has a total of 23 hydro business units located aroud the world that are backed up by 70 ALSTOM power sevice centres. This allows quick & proffesional response to customer needs.
HYDRO POWER PLANT REFURBISHMENT- THE BUSINESS APPROACH
MAJOR RENEWABLE SOURCE
Hydropower is a major energy source & it accounts for 20% of the electricity production of the planet.In additio, hydropower is the most significant energy source. It is clean, easy to operate, efficient, flexible & storable.
LARGE AMORTISED INSYALLED BASED
Hydropower plants are long lasting facilities: it is not uncommon to find hydropower plants operating far beyond 50 years. The world hydro installed base
is more than 750 GW & includes a large population of plants over 35 years that have not been significantly refurbished.ALSTOM power has taken a large share in the world hydropower development. We have installed equipment in circa 4,600 htdropower plants totalling 220 GW. Since the start of generation we support our customers for the maintanence & refurbishmant of their equipment.
PRIVATISATION, DEREGULATION
However, times are changing. Like with the entire electricity generation sector, the hydropower market is under increasing competitive pressure: low prices, deeregulated market, electricity tariffs, availability, complaince with new regulations, network stability, health & safety & increased profitability.
GROWTH OF RENEWABLE ENERGY
Is there a future for aged hydropower plants in this new environment?ALSTOM power’s answer is yes.The potential for far more hydropower production already exists without building new plants. The ageing hydropower plants represent an important potential for growth of hydroelectricity generation which is a large source of renewable & emission free energy.
CONDITION ASSIGNMENT & VALUE ANALYSIS
Refurbishment is the work of a team. Based on the guidelines set by the customer, a team including the customer’s plant engeneers & ALSTOM power specialists carry out a value analysis of the hydropower plant.Main items involved are:Penstocks & valves, turbines & governers, generators, excitation system, voltage regulators, control & monitoring systems, electrucal & mechanical auxiliaries, outgoing substation & cabling. The value analysis takes into accout the customer’s production strategy & O&M philosophy asa well as the laws & regulations.The technical condition assessment of the plant shall be complemented by an operating & breakdown costs review.
TOTALLY OPTIMISED SOLUTION
In collaboration with the customer, a schedule of work is defined & the corresponding costs are evaluated. The team will then prepare a comprehensive optimised refurbishment proposal outlining what is northwhile to improve, hoe much it will cost & what the yeild will be.
Once the work is defined, ALSTOM power pepares a detailed technical & commercial offer for the entire project. This will include an optimised total value
of the plant including trade offs between different operational & technical options, consideration of unit outage duration, taxation, potential subsidies, environmental impacts & financing constraints.
INNOVATIVE FINANCING
The crucial issue then is to finance the project. ALSTOM power will team with the customer to arrange financing & to provide innovative financing packages. Such special financing schemes have proven to be the most cost effective solution in numerous cases & sometimes makes the difference in moving projects forward.
TRAINING & ASSISTANCEDuring the contract performance, ALSTOM power hydro will train the customer’s personnel concedrening installation & maintenance of the plant. Training is organised with courses at our facilities or at the customer’s premises or at the project site.
PROJECT EXECUTION
A dedicated project manager provides a single point of contract with the customer & leads each project. Experieced project & site management teams cover all aspects of the project from design, planning, engeneering, procurement, manufacturing, erection & commisioning through plant operation & maintenance.
BUSINESS SOLUTION
ALSTOM power hydro knows what it yakes to keep an hydropower plant at peak perfformance. There are a number of cases backing their confidenc. Refurbishment have proven to be a great value by providing more reliable megawatt-hours with lower maintenance costs & fewer unplanned outages. The decision to refurbish reqiures more than an engeneering specifiation. It requires gauranteed investment costs, prformances & operating costs as well as attracting financing.
TECHNICAL SOLUTIONS
ALSTOM power technology centres are developing improved designs for hydropower, electromechanical equipment, & controled systems. Specific designes for turbines, generators & controls are developed to enhance the performance & operation of refurbished plants. These innovations include environmentally friendly designs such as oil free & fish friendly turbines & allow significant improvements in reliable, low cost generation.
COMPREHENSIVE APPROACH
ALSTOM power is an experienced turnkey contractor & has all relevant technologies for hydropower plants.They have the knowledge & operating experience necessary to perform a comprehensive analysis of the plant & determine the proper business solution in each case.
They are able to impliment the optimise4d solution as a turnkey project & provide a gauranteed outcome.
FINANCING SOLUTIONS
ALSTOM power is also experienced in arranging financing or in developing complete financing packages or in same instances as an equity provider. An energy projevt involving renewable energy, showing a fair return & backed by a leading contractor will attract financing.
RETURN ON INVESTMENT
There is always room for improvements. The question wheather you can count a satisfactory return on your investment?The capacity to generate cash of most of the ageing hydropwer plants can be improved substancially in a world, which increasingly values reliability, flexibility & emission free energy.
A well engeneered refurbishment will allow the generation of a higher output of renewable energy in a more flexible way at a lower operation cost.
REFURBISHMENT
Hydro refurbishment can be broken down into three main catagories: RehabiliationThe goal of a rehabiliation is to renovate the plant to restore it to ti’s original performance.ALSTOM power’s vast experience enable us to provide rehabiliation options withion the original design criterion while furnishing improved quality & extended service life. UpgradeUpgrade utilises technical progress made since the plant originally started production or since the last refurbishment. The combined efforts of improvements in technology, design & materials results in increased efficiency & output, reduced losses, improved reliability & extended serce life. ModernisationModernisation is the replacement of obsolete & unreliable control systems with up-to-date technology. It offers substancial technological benefits that eneble an older power plant to be operated with the same degree of reliability & pereformance as a new plant.
SOME OF THE MAJOR PRODUCTS THAT ALSTOM MANUFACTURES
KALPAN TURBINES
Kalpan turbines are used for low head application reanging from 12 to 50 meters appx. Due to their runner blades/wicket gates double regulating system, these turbines have high performance charecteristics over a large range of heads & loads. With its present tate of technology, ALSTOM power hydro can design large turbines upto a 10 meter runner diameter & a 220MW unit output. The key components are then devide divided into subassemblies to meet transport limitations.
For the harnessing of large rivers, this type of design & manufacturing method can considerably reduce the investment cost. The experiencec & expertise gained for the large kalpan units are also present in ALSTOM power hydro smaller applications. The following are just a few references showing ALSTOM power htdro technical skill in this field.
1977 – Palmer (Paraguay), 3 units. 1980 – Porto Primavera (Brasil), 18 units. 1981 – Balbina (Brasil), 5 units. 1984 – Cachoeria Dourada (Brasil), 1 unit. 1988 – Kedung-Ombo (Indonesia), 1 unit.
The Kalpan turbine has considerable advantages over the other types of machines which may also be used for the same application.
One example of this is seen within the lower range of heads & when the units take part in the network frequency control. Operation with kalpan turbines is then more reliable than with bulb tuebines due to the high inertia of rotating parts. On the other hand, within the range of higher heads, when low load operations are frequent, the kalpan turbine will be better suited then the francis type resulting in high performances due to its double regulating system.
The purpose of the hydraulic design of kalpan turbines is to predict the performances of the machines through calculation methods & then to conduct an experimental chacking to assertain that the machine is best suited to site conditions & meets the client’s operating requirements. ALSTOM power hydro has state of art methods to carry out such studies.
Theoritical investigation & scientific calculations
For the design of its turbines, ALSTOM power hydro has developed calculation programmes that into consideration all hydrualic parameters so that the configuration of spiral cases, wicket gates & runner bledes can be taken into account. A few of these programmes are detailed below:
straight circular blade cascade calculations considering the effects due to boundary layers, resulting in the accurate prediction of flow velocity profiles & blade pressure distribution.
Iteration programmes considerin the radial balance of meridional & blade flows.
These calculation programmes determine the optimum blade configuration, producing all the data necessary for blade machining by means of NC machine- tools, thereby gauranteeing the best execution. Specific calculation programmes using the finite element method, when fronto spiral cases are used, are also available.
The finite element calculations give information about the main operating parameters of the unit, such as hydraulic forces on the distributer & blades, cavitation etc. considering the general implicayion of certain software programmes such as STRIMM, they can therefore be applied to other fields.
To make these calculations, ALSTOM power hydro makes use of its high performance data processing tools such as computers, profile contour correction & graph display devices.
Acceptance model testsOnce the design of a runner has been determined by calculations, its performances are checked by model tests done on a special test rig. These tests are then utilised to establish a correlation between model & prototype performances. Such correlation is all the more valid as there exists a fair agreement between model & prototype thanks to the mathematical defination of blades & prcesion of NC machining.
The unit performances can be measured thanks to automated systems allowing for very accurate measurements to be obtained. All operating features for various are also checked: efficiency, powwer, absense of cavitation, hydraulic loads.Furthemore, the validity of calculations is checked by systematic speed & pressure measurements which ensure a finer analysis of calculations.
Besides such special test rigs, ALSTOM power hydro has testing equipment with which it is possible to ensure fine flow visualisation & to determine whether, under special flow conditions, vibrations are likely to occur. ALSTOM powwer hydro has managed to remain in the forefront of technology thanks to its theoritical research which is thereafter checked on an experimental basis.
In recent years, ALSTOM power hydro has held one of the foremost places in the field of kalpan turbines & its willingness to overcome any design problems,
ALSTOM power hydro has acquired high performances scientific programmes & computation tools.
General description of rotating parts
The overall design of a unit mainly includes: 2 or 3 bearings depending on requirements of the correct dynamic
behavior of the shaft line. A thrust bearing usually located on the turbine head cover.
This arrangement allows axial loads to be transferred to concrete through the upper head cover. In addition, the behavior of the machine is improved due to the decrease in the shaft line length & the axial deflection of the unit.
In the cases when this solution is not applicable, ALSTOM power hydro has developed a shell type crosshead which offers high stiffness & a beeter distribution of loads, resulting in a significant decrease in thermal expansion forces transferd to the concrete.
GOVERNING SYSTEM
The governing system fulfils varios functions: Speed governing in isolated or interconnected netrwork. Fast speed unit starting & speed stability under no-load operating
conditions thanks to a specefic algorithm using adjusting parameters indipendent of those for coupled operation.
Automatic unit/network synchronisation through runner blade or wicket gate control.
Flow or load regulation. Efficiency optimisation in terms of head & load through a three
dimensional digit cam relationship. Load/frequenvy control & unit load distribution under ALSTOM
power hydro joint control.
The range of ALSTOM power hydro governors using digital & anlogue techniques includes devices particularly suitable for the control of kalpan turbines thanks to the possibility of blade/wicket gate cam relationship.
Governor
The governor incorporating the latest development of digital technologies allows several operating modes to be carried out:
All automatic mode- the governor controls the turbine all by itself. The speed is controlled by the governor to take load variations in the network into account. The governor is permanently self testing & it makes decision to taks adequate action in the event of any troubles.
Remote control- the governor recieves load limitation, head set points etc… & actuates the turbine accordingly.
Link with an operator- thanks to the display keyboard on the front face or a link with a PC computer, the operator can modify the operating setpoints, change adjusting parameters or devlop test or trouble shooting programmes.
The governor can be completed by automatic systems or by monitoring systems allowing thre turbine to be checked for correct operation.
The governor can also be linked ro a data processing network through serial communications to minimise wire to wire connections between various items of the power plant & to exchange data & information with the other equipment.
Oil hydraulic system
The power necessary for the opration of the various control devices is produced by an oil hydraulic system assiciated to a pressure tank to imorove safety. A hydraulic device allows the pump delivery to be either set at a rated pressure in the pressure tank or at a reduced pressure at a oil tank, which results in a considerable energy saving.
During unit shut down, the pressure tank is issolated by a hydraulically controlled shut off valve. As the pressure tank remains indipendent, the unit can immediately be restarted.
Safety systems
With regard to safety, ALSTOM power hydro takes all the user’s special requirements into account, for instance;
Hydromechanical protection against overspeed. Shut down & restarting detector systems. Shut off valve hydraulic control. Vibration detector system in the case of automated power plants. Non linear wicket gate closure rate. Detection of rotation in the event of leakage.
Quality
All hydraulic & electronic equipment is made up of consistent subassemblies. These subassemblies are fully assembled, tested & preset in the ALSTOM power hydro workshopsin complience with stringent procedures include in a quality assurance programme in agreement with the specifications of the largest international organisations.
PELTON TURBINES
Impulse type turbine, that is, using the water kinetic energy, pelton turbine can operate under a very large range of heads, from 200 m to 1500 m.
On the basis of its experience, ALSTOM power hydro can offer vertical shaft machines equiped with multi-jat collectors upto output of 350MW appx. with a 400 mm diameter.
On the other hand, LASTOM power hydro also designs horizontal shaft single or double runner pelton turbines with one, two or four jets capable of bieng economically used for the lowest discharges. A few achievements mentioned below show the wide range of types of designs, sizes & operating conditions pffered by ALSTOM power hydro:
1948 – malgovert (France) 1955 – Onera (France) 1963 – Mont-Cenis (France) 1968 – Lotru (Rumania) 1981 – Bissorte 3 (France)
The pelton turbine offers the main following advantages A very flat efficiency vurses head curve, therefore at low load, the
efficiency will be very much better than for the francis unit. Two indipendent discharge control systems:
- one needle slow control system for lomiting overpressure to small values
- one deflector fast control system for decreasing considerably over speed.
Consequently this type of turbine will very often be selected for the plants including long penstocks. A francis turbine would require, in this case, a pressure relief valve or a surge shaft to be added.
Good behaviour in waters loaded with abrasive materials owing to its high operational flexibility .
ALSTOM power hydro has developed testing & calculation programmes for optimising the performances of pelton turbines. The results have been verified on all the machines installed by ALSTOM power hydro.
General researches & calculation programmes
The runner & all its adjecent parts are closely related & they take part in the optimum efficiency which may be expected from pelton turbines.
Optimisation of collector desing upstream of nozzle. The influence of these shapes on the velocity spectrum at the outlet of the collector can be analysed thanks to the three dimensional calculations on perfect & real fluid.
Systematic calculation to determine an optimum runner configuration depending on the charecteristics of each project.the industrial experience on scale effects regarding performance drops is particularly considered in these calculations.
Mathematical defination of bucket surface allows the bucket shape to be modified using a few key parameters.
Hydraulic tests
The ALSTOM power hydro model test rig enebles the performances of runners supplied by various types of collector & nozzle to be studied but also the main following phenomenon to be analysed:
Water flow discharge into the housing Splashing of water on the runner as a result of various hindrances Downstream level effect the various other parameters
In addition, special tests enable the jet to be analysed as an important element for runner efficiency. Some special test loops are used for this purpose:
Water gust tunnel with a pressurised air tank used as motive power. This enables injurious fluctuations to be eliminated & a finer analysis of the influence of geometrical parameters to be made.
High pressure circuit with multistage pumps to study the effect of the head on jet bursting.
Thanks to such research work, tests, analysis of industrial results, ALSTOM power hydro has acquired, over the past 20 years, a forefront position among its competetors.
Like any hrdraulic turbine, the palton unit consists of three main parts namely flow control & inlet devices, rotor & outlet devices.
Inlet
The inlet sysytem is constituted by nozzles fixed to a collector which is itself connected to the penstock through a spherical valve . the number of nozzled & the shape of the inlet conduit depend on the hydraulic features & on the arrangement of the plant. For vertical shaft turbines, the collector is completely embedded in concrete which therefore takes up directly reactrive jet loads.
ALSTOM power hydro gives special attention to the design & manufacture of collectors whether they are of the spiral or wye branch type.In fact, the element connecting the bifurcates together are constituted by straight or bent tubes, therebycontributing to reduced head loss across the conduit. These
various elements are shop-or-field-welded to the various flanges & the bifurcates of cast steel or welded contruction are always so dimensioned as to minimise head loss. This technique eleminates connecting flanges.
Flow control devices
ALSTOM power hydro generally offers nozz;es of the straight type with a tendency to closure which may occur over the whole stroke. The needle is operated by an oil servomotor inside the nozzle.
To make maintenance easier, ALSTOM power hydro executes the working parts subjected to sand erosion in such a way that they can easily be replaced without dismantling runner, nozzle or deflector. The condition of such working parts, carefully designed, is of prime importance for the quality of the jet & therefore for the performance of the machine.an altered jet causes the runner to wear more rapidly & therefore the efficiency to decrease. To increase the life of such parts, needles & nozzle tips are made either of hard chromium trested steel or of stellitecovered steel, depending on the quality of water.
In addition, each nozzle is provided with a deflesctor being held off the jet by the governing circuit pressure & in case of load rejection deviating the jet, by means of a spring.
RotorRunner
ALSTOM power hydro supplies runners generally manufactured from integral castings & made of 13% chromium 4% nickel stainless steel. The runners are atatically balanced in the shop. Buckets are machined, very carefully groung & smoothed in the areas subjected to the most severe loads. Many inspections are done during manufacture. The runner is connected to the turbine shaft flange by means of bolts prestressed by hydraulic hoists, thereby ensuring torque transmission by adhesion.
Bearing
The ALSTOM power hydro bearing of the submeerged type is bolted to the central housing bottom section. It takes up radiel thrusts induced by the jet even if they are operating individually. The bearing is fitted with a smooth shell made up of several sections & coverd with anti-friction metal.As far as bearing lubrication & cooling systems are concerned, ALSTOM power hydro has developed a technique making the use of external pumps nacessary.In fact, the oil, due to its viscocity, is driven by shaft rotation. This self sustained circulation ensures bearing shell lubrication & heat evacuation.Housing
There may be two types of housing: either a structure serving only as a pit steel liner & guide bearing supportor in the case of vertical shaft machines, a housing capable of supporting the generator atator. The later design has particularly been developed by ALSTOM power hydro owingto its substantial cost saving. This design involves an appriciable decrease in the shaft length & therefore allows a two bearing unit to be installed.
Shut-off valves
Considering the range of heads under which pelton turbines operate, they are generally supplied by long penstocks with a high internal pressure. Under such conditions, it is essential for the safety of the plant to be gauranteed. To achieve this aim, shut off valves are arranged at the base of penstocks, upstreem of collector. These valves are capable of ensuring:
Flow cut off in the case of needle control system failure, Isolation of every shut down or for the maintenance of pumps.
The valves are mainly of the apherical type due to the very high working pressure applied. To improve safety conditions, the valve control system may include, for samll sizes, a counterweight ensuring a tendency to closure.
GOVERNING SYSTEM
The governing system fulfills various functions: Speed governing in isolated or interconnected network Fast speed unit starting & speed stability under no load operating
conditions thanks to a specific algorithm using adjusting parameters indipendend of those for coupled operation.
Automatic unit or network synchronisation. Flow or load regulation. Turbine efficiency optimisation through switching systems allowin the
number of jet nozzles to be automaticaly changed during operation without causing any disturbances.
Load or frequency control & unit load distribution under ALSTOM power hydro joiny control.
The range of ALSTOM power hydro governors using digital & analogue techniques includes devices particularly suitable for the control of pelton turbines.
Governor
The governor incorporating the latest developments of digital technologies allows several operating modes to be carried out:
All automatic mode- the governor controls the turbine all by itself. The speed is controlled by the governor to take load variations on the network into account. The
governor is permanently self-testing & it makes decision to take adequete action in the event of any troubles.
Remote control- the governor recieves load, limitation, head set points etc… & actuates the turbine accordingly.
Link with an operator- thanks to the display keyboerd on the front face or a link with a PC computer, the operator can modify the operating set points, change adjusting parameters or develop test & trouble shooting programmes.The governor can be completed by automatic systems or by monitoring systems allowing the turbine to be checked for correct operation.
The governor can also be linked to a data processing network through serial communications to minimise wire to wire connections between the various items of the power plant& to exchange data & information with the other equipment.
Oil hydraulic system
The power necessary for the opeeration of the various control devices is produced by an oil hydraulic system associated to a pressure tank to improve safety.
A hydraulic device allows the pump to be either set at a rated pressure i9n the pressure tank or at a reduced pressure in the oil tank, which results in a considerable energy saving.
During unit shut down, the pressure tank is isolated by a hydraulic controlled shut-off valve. As the pressure tank remains indipendent, the unit can immediately be restarted.
Safety systems
With regards to safety, ALSTOM power hydro takes all the user’s special requirements into account, for instance:
Hydromechanical protection against overspeed Shutdown & resarting detector systems Shut-off valve hydraulic control Vibration detector system in the case of automated power plants.
Quality
All hydraulic & electronic equipment is made up of consistent sub-assemblies. These sub-assemblies are fully assembled, tested & present in the ALSTOM power hydro workshops in complience with stringent procedures included in a quality assurance programme in agreement with the specification of the largest international organisations.
POWER TRANSFORMERS
ALSTOM has been manufacturing all kinds of transformers up to 525kV rated voltage & 400MVA rated power & reactors in Gebze plant for over 30 years. Not only the production process & tests but the construction & design are also supported by computers. The transformers are manufactured in accordance with VDE 0532 & IEC 76 or any other required international standard.
Some of the parts of a transformer are as follows:1. Core limbs2. L.V. winding3. H.V. winding4. Tapping winding5. conductors6. L.V. bushings7. H.V. bushings8. Pressing equipment9. ON-load tap changer10. Motor drive mechanism11. Oil conservator12. Radiators13. Tank
CORE
ALSTOM transformers consists of the core lombs with multople layers & theoritical circular cross sections.
The transformar cores are produced with three limbs or with five limbs due to transport constraints for large power transformers. At the cores with five limbs the first & last limbs are used as returning limbs. At the single phase transformers core can be produced with two limbs or with three limbs.
The limbs with or without coils lie parallel on a plain & are connected together with lower & upper yokes. In case of more than one output of voltage level required, the core are manufactured with intermediate yokes.
In order to achieve better reduced losses & low noise levels with smaller core dimensions, core sheets produced with highly developed technologies are used. Generally, the thichness of core laminations 0.30 or 0.23 mm & it is possible to obtain better results with 0.23 mm thick laser treated core sheet.
CNC machinery is used for leangthwise & breadthwise cutting to achieve better results with these low-loss core sheets. Step-lap systems give the best result in stacking. The required endurance on core limbs is provided with glass fibre supported bands & on the yokes with steel best bandages over pressing irons.
WINDINGS
The windings are the most vital part of transformers. The windings should be mechanically withstandable against the high voltage impulses & short circuit stresses which may occur during the service of transformers.
The windings are designed in accordance with the temparature rises, insulation & impulse voltage levels, overload conditions, short circuit srtesses which are issued in international manufacturing standards. In ALSTOM, normally layer winding is used up to 110kV voltage level & continuous disk winding is used for high voltage levels. Copper is used as winding conductor. Winding conductors are either simple rectangular cross sectional conductors or transposed rectangular cross sectional conductors. These conductors are wounded by insulation paper in several layers to reach the required insulation level.
Layer windings are composed of concentrically wounded cylindrical coils together with oil channels between the layers.
ALSTOM uses the coil machinery which has vertical & horizontal pressing facilities for the production layer windings. Disc windings are formed from composed wounded coils which has very high radial capacity at the winding entrance to have linear impulse voltage distribution. Drying, pressing & oil impregnation are the most important factors, as well as windings of coils. In ALSTOM, dynamic pressing procedure is used. In this procedure, the drying, the pressing & the oil impregnation are achieved at the same time. While the coils are at the drying phase, certain press forces are applied, maintained for sometime & released. This application is continued for sometime, priodically at definite intervals & then at the end, coils are impregnated with transformer oil. By this way, the leangth of coils are brought to the actual values & the changes of the coil length because of the humidity of the environment are limited.
CLAMPING STRUCTURE
The windings are compressed with pressure segments at the upper & lower yokes in order to encounter the mechanical stresses occurred axially during the short circuits while the transformer is under service. For the radial stresses, the inner coil is supported with laths between the core & itself & the other coils are supported with laths in the channels between the coils. For the vertical pressing of the windings with pressure segment, the hydraulic jacks are used between the pressing iron in the upper yoke & the segment. By applying the precalculated press-force, this gap is filled with dried transformerboard wedges.
VOLTAGE ADJUSTMENT (TAPPINGS)
Due to the voltage variations in the networks or in the substations, transformers are normally equiped with tapping windings having necessary taps to accomplish the
requested voltage level. The connections of these taps are either made with no-load tap changer when the transformer is deenergized or with no-load tap changer when the transformer is under operating conditions.
The moter drive mechanism is used for the control of on-load tap changer. This control can either be made locally on the transformer or remotely form the control room. The opration of off-load tap changers can either be made on the cover or on the sidewall of the transformer by manual drive mechanism. Upon request, motor drive mechanism can be provided to operate the off-load tap changers.
TANK & CONSERVATOR
The tank of a transformer in which active part that is formed of core & coils is placed should withstand the mechanical constraints during the transportation, vaccume applications during the oil treatment & hydroststic & dynamic stresses which may occurduring the service conditions. Therfore, necessary supporting elements are installed on the outer surface of the tanks to overcome the above mentioned stresses.
The type of the tank is determined according to the transportation type. The flet base type tanks can be carried by straight platform/lowbed trailers. Special measures on the tank can be taken on different transportation types, such as supporting lugs at the side walls, supporting lugs at the narrow walls for transportring in Schnabel vehicles. On the tanks, there are oil treatment connection valves, oil sampling cocks, lifting lugs, butterfly valves to which radiators are connected & the oil connection valves to other types of coolers in case. To provide the movement of the transformer, it can be manufactured wit wheels or skid base.
All gasket surfaces at the tank are treated with utmost care to prevent unwanted oil leakages. In ALSTOM, all gasket surfaces are painted with a special paint against corrosion. Before painting, outer surfaces of the tanks are sand blasted in accordance with international standards. For radiators, after the chemical surface protection process, oven backed painting & inner resin coating are applied. Upon request, zinc sprayed tank & galvanised type radiators can be supplied. Standard color is cement gray, but other colors can be provided on request. The connection of the cover with the tank frame is made by bolts & oil leakage is avoided by special O-ring oil resistent rubber gaskets. Conservators are used in transformers to compensate the increase of oil volume due to heat. The oil flows from tank to conservator or from conservator to tank through the pipe between cover & conservator. Depending upon the expansion & extraction of the oil, air enters or exits the conservator through a dehydrating breatherequiped with silicagel particles. As a result of this movement, dust, dirt or chemical gases in the environment may enter the conservator & contacts the oil. So the aging of the oil becomes faster. Upon request, this can be avoided by using special oil preservation system. The conservator has separate compartments for main tank & the on-load tap changer oil. These compartments have no air leakage.
COOLING
In transformers, the cooling has a special importance to ensure safe operation & to increase the lifetime of the transformer. The heat occurred in the transformers is dissipated at the cooling unit by the help of the oil. The simplest & mostly used cooling system is ONAM. ONAF is cooling system in which cooling air is blown to the radiators by fans, is also used.
The radiator batteries can also be used separately in the cases which ahere the installation place is considerably limited or upon requirements of the customers. In some cases which the rating of the transformer is considerably high, it may become necessary to install the batteries apart from the transformers. The main coolers are:
Oil-air & Oil-water coolers.
MEASURES FOR NOISE REDUCING
The bigger rated power transformers are installed in the energy distribution centers; i.e. in the substations, near to urban areas, as the demand of energy increases due to the rapidly increasing population. Surely in the urban areas the noise level reduction of the transformers has a vital importance regarding the health of human biengs. As a consequence of this inportance, the maximum noise level has been limited by regulations & laws in most countries. All the transformers put into service in such regions should have noise levels under the limit values. The noise level reduction measures for transformers can be outlined into four major groups as follows:
1. The measure taken in the active part- to design the transformer with low flux values- to use Hi-B quality steel- to use step lap method to cut the core steels - to install special rubber sheets between the core laminations- the bandaging of the core limbs & the elastic connection between
active part & the bottom of the tank prevent the vibration from transfering to the bottom part of the tank
2. The measure taken in the tank- the installation of the sandwitch panels onto the outer surface of the
tanks. The sandwitch panel isa noise absorbing wall formed by pressing “stell/insulation sheet/steel” together. The gap between the sandwitch panel & the walls of the tank is filled with srone wool up to 80-90%. This measure can reduce the noise levels by approximately 6 dB(A).
3. The measure taken at the cooling system
- the measure taken at the cooling ayatem at the outside of the tankare those of using low cycled fans at oiled air cooling systems & putting panels to air entrance & air exit parts of the cooler.
4. Measures taken at the service place of the transformer- if above mentioned measured measures are not enough at the
service place of the transformer, it may be necessary to take some additional noise reduction measures. The transformer is put in a specially premanufactured cell which has noise absorbing panels. This measure can reduce the noise level up to 15 dB(A).
CONNECTION TERMINALS
In HV terminal connections over 30 kV rated voltage, for the aerial line connections oil/outdoor air condensor bushings; for GIS connection applications oil/SF6 or oil/oil condensor bushings are used. The terminal connections in the transformers of which rate voltage is less or equal to 30 kV, can be made with oil filled DIN bushings replaced with DIN bushings.
Upon request, air or oil insulated cable box can be provided. At LV terminal connections with high voltage value, upon request, air or oil insulated cable box can be provided.
At LV terminal connections with high value of currents, oil/open air condenser bushings in generator; water cooled pipe or bartype bushings in-furnace or rectifier transformers are provided.
PROTECTION & CONTROL EQUIPMENT
The transformers are equiped with the following protection & control instruments for the operational security:
1. Buchholz relayIt is mounted on the pipe connection from transformer tank to conservator. The gases which occur in the transformer for any reason are collected here & depending on the volume of gas it gives an alarm or control signal.
2. Pressure relief deviceIt is mounted on the transformer cover. It replies to the sudden pressure increase that may occur by an arc in the oil in the transformer & gives tripping signal by the contacts on itself.
3. Oil level indicatorIt is mounted on the sidewall of the conservator. Depending on the oil temparature variations, it indicates the oil level in conservator & gives too loe or too high indications on the contacts on itself.
4. Dehydrating breatherIt is mounted on the conservator. It takes the moisture & dust in the air that enters the conservator & increases service security of the transformer, the amount of silicagel particles in it varies with the amount of the oil in the transformer.
5. Oil thermometerIt controls the temparature of the oil in the transformer tank & gives alarm & trip signal at the adjusted temparature limits. It gives start & stop signals for the fans used at forced cooling. If remote control is required, PT 100 resistance or 4-20 mA output is added to it.
6. Winding thermometerIt controls the temparature of the windings with its monitoring circuit & gives alarm & trip signals at the adjusted temparature limits. Like the oil thermameter, it is used for the control of fans & if required PT 100 resistance 4-20 mA output is added to it.
7. Oil flow indicatorIt controls the flow of forced oil cooled transformers. It is mounted on the pipe connection in which the oil flows through. It gives alarm signal if the oil doesnot flow for any reason.
TESTS
For a better quality assurance, following teats are performed on all of the manufactured transformers to verify that they have been designed & constructed to withstand conditions stipulated by national & international standards.
Routine tests- Measurement of winding resistance- Measurement of voltage ratio & check of vector relationship- Measurement of impedance voltage & load loss- Measurement of no-load loss & current- Induced overvoltage test- Applied voltege test- Test on on-load tap changers
Type & special tests- Temperature reise test- Measurement of insulation resistance- Measurement of capacity & tangent of insulation loss angle- Chopped wave impulse test- Measurement of acoustic sound level- Measurement of zero sequence impedence- Partial discharge measurements
- Measurement of harmonics of on-load current- Measurement of power taken by the fan & oil pump motors- Short circuit withstand test
AFTER SALES SERVICE
CUSTOMER SUPPORT LINE
Principles
The customer support line is a free ALSTOM power service established to give hydro plant owners & ALSTOM a forum to jointly discuss technical or oprational hydro isues. The service will respond to minor hydro issues or problems via well defined questions that can be handled by a telephone call, exchange of letters/faxes or by e-mail.
Should the questions raised become more specific or the requested answer lead time very demanding, then the support will be charged in function of the volume of exchange & the time coverage.
Interest
By using the custoemr support line one will obtain hydro related technical assistance in a fast & easy process to help the company to solve their minor technical & operational problems. ALSTOM power hydro will involve experienced & qualified company experts to espress their hydro issues.
Benefits
By using ALSTOM power hydro customer support line one will avoid the time consuming search for the right specialist to address their hydro problems.
Implementation
Through the customer support line one will be able to establish informal contacts with experienced ALSTOM power hydro personnel & thereby solve minor problems with a minimum of effort. ALSTOM power hydro will maintain & distribute ALSTOM contact liss to interested parties. The contact list will provide contact names & phone & fax numbers to be used in acse of problems.When a customer support line discussion suggests that a more detailed review & more efforts are needed, other ALSTOM power hydro services such as break down support or technical assistance are available. The ALSTOM power cantact person will suggest these other services & advice on ways the customer may limit their problem based on available information.
Cost
The customer support line is free of charge for a limited number of calls.
Should the number exceed a initial credit or complex technical requests involving extensive research & specialists attention be required, then the support will be charged.
Return on investment
The customer support line will lead to: Improved question response time Reduced trouble shooting efforts Reduced outage time.
BREAKDOWN SUPPORT
Principles
Breakdown support is support service from ALSTOM power aimed at the fast & eficient return of hydro generation & the recovery of a plant’s stability due to operational disturbances.
BenefitsBy reducing the down time caused by a plant disturbance, breakdown coats sucg as low revenues &/or cost of purchased power may be held to a minimum. In addition, experienced & ready ALSTOM power personnel reduce ones need to maintain such specialised staff resources in-house.
Interest When a breakdown occurs, ALSTOM power will return the unit to normal
operation as quickly as possible. In addition, ALSTOM power will analyse the cause of the breakown in order to recommend a permanent repair.
Within ALSTOM power, breakdowm support is a high priority service designed to deliver the necessary manpower, competence & the most common materials/spares on short notice. Internal ALSTOM systems are used to expidite site works preparation, request preparations & arrange stand by service personnel.
Implementation Breakdown support is a fast response to your breakdown requests using
experienced engineers & repair resources. Based on prevailing conditions
& time limits, this service will include analysis of inherent failure mechanisms & causes.
However, should more detaileed tests & analusis be required after the actual recovery of plant operational health, ALSTOM power is ready to discuss such extended studies.
Breakdown support may be used as a stand alone service or as part of a more extensive ALSTOM power service contract. In the latter case moer detailed site conditions suchas response time , type of personnel & stock of spare parts to be identified for that particular plant will be evaluated.
Cost
Breakdown support will be invoicedon a cost plus basis.
Return on investment
Reducing downtime is critical whenever breakdown occurs. The additional cost of a quick response is relatively small compared to the loss of hydro production revenues.By relying on ALSTOM ower one may:
Limiy his/her exposure to loss of revenues Recover generation output Return the unit to production.
TECHNICAL ASSISTANCE
Principle
Technical assistance is a service from ALSTOM power that provides their customers with the technical competence to improve the operations of their hydro plants. This assistance includes a general technical analysis, the assessment of all hydro plant equipment for operational & life span conditions & planning of future plant upgrade &/or maintenance projects.
Benefits
By relying on ALSTOM power personnel experience & technical competence, one will be working towards optimal solutions while reducing their own engineering costs.
Interest
ALSTOM power hydro technical assistance service gives to the customers access to ALSTOM’s competence & knoe-how as a world wide supplier mastering all hydro plant equipment technologies.
This service allows one to share their experience of a complete range of hydro plant designs & operating practices.
This unique engineering capability can only be maintained thanks to their wide & diverse installed base.
ALSTOM power hydro technical assistance service is based on a strong internal network of engineering & service resources. This service is supported by a co-ordinated exchange of data between ALSTOM units to ensure the availability & the quality of all relevant product information.
Implimentation
The technical assistance service will include the intervention of qualified engineers who will meet the customer to understand the issue & plan the intervantion with the client.
Then ALSTOM power team shall undertake, as directed, a detailed assessment using up-to-date evaluation tools & methodologies.
All technical assistance services shall be summarised by a confidential technical assistance report including measurement, schedules, interpretation & assessment, as well as their final conclusions & recommendations.
Cost
Terchnical assistance service will be invoiced on a cost plus basis.
Return on investment
By using ALSTOM Npower one may assess: Equipment limitations Potential capacity improvements Maximised equipment performance
SPARE PARTS
Principles
It is difficut to establish & maintain a spair aprt soct for an hydro plant because many of the main components are specific to each plant. However certain sub-components are standardised & therefore it is possible maintain a stock, whether in ALSTOM power hydro or in clients premises, of the most common parts, which are used in a wide range of hydro plants. ALSTOM power has establishe a system for a common spare parts stock supply that can reduce the demnds on a plnt owner’s share parts store, simplify order procedures & minimise the consequences of an uplanned shutdown of the plant.
Interest
ALSTOM power hydro works to ensure that one will have common spare parts that fi their existing equioment. ALSTOM supplied spare parts are of high quality, durable & designed for long tife.
Benefits
Because LASTOM power spare parts are readily available, you can expect good service & prompt delivery. Their efficient customer sevice systems will deliver spare parts that will reduce substancially the outage time of their plant.
Implimentation
The ALSTOM power hydro spare parts system is based on systematic analysis of the lifetime of critical hydro components, the extent of standard components used, an updating system for old drawings & a list of available sub-suppliers for outsourced components such as instrumentation, heat exchangers, valves, pipes, etc…
The most commonly required spare parts, either due to normal wear & tear or in function of their criticality for the plant operation, will be stocked, taking into account the number of plants involved in the spare parts system. Special agreements concerning the scope of stocked spares may be established between different spare parts systems.
A general mapping & an efficient linking network between the spare parts systems will allow to overcome occassional shortages.
The delivery of certain spare parts may require manufacturing or supply by third parties. In all cases, ALSTOM power hydro will keep the supply cycle to a minimum by using efficient processing procedures, fast access to relevant drawings & special agreements with preferred sub-suppliers.
Cost
Spare parts will be invoiced on acost plus basis. Warehousing fees will be charged separately on a time basis.
Return on investment
Using ALSTOM power as ones spare parts supplier one will be able to: Minimise parts inventories Reduce parts order cycle & delivery time Reduce outage time Extend lifetime of old equipment.
TRAINING
Principles
Uptdate the skills & knowledge of client’s operation & maintenance personnel through standard modules of theoritical lectures & practicle training on equipment technology & O&M procedures.
Interest Keep O&M personnel competence level Develop preventine & condition based maintenance Make use of the expertise of ALSTOM power hydro Improve O&M personnel awareness to new technologies & methods.
Benefits Reduce O&M costs Improve O&M quality Motivate people
Implementation Standard training modules with possible customisation Venue in any ALSTOM power hydro training centre or at client’s premises Operation training Maintenance management training Equipment training Training documentation ALSTOM powr hydro may arrange the training session to visit an hydro
power plant at Porjua in Sweden Final exam at the end of the training session.
Cost
Price per week & per trainee, depending on the number of trainees at the same time. Travel & accomodation can be arranged.
Return on investment
Improvement of staff competencies increases quality level & reduces risks & costs.
MAINTENANCE ENGINEERING
Principles
Update state-of-the-art maintenance sustem, coherent with cielt’s operational strategy at both unit & plant levels providing:
Doccuntation management Maintenance programme implimentation Spare holding selection, decision chart & procurement programme Technical assistance on equipment design, condition of operation &
overhaul supervision Installation of computer maintenance management system
Interest Best practice Better co-ordination with operation Rationalisation of organisation
Benefits Reduced maintenance costs Minimum downtime for planned maintenance Means to prevent forced outages Optimisation of spare holding costs
Implimentation Diagnosis of present status Identification of improvement areas Implimentation of updated working methods
Return on investment Very short payback Increased availability & reliability Reduced planned outages & prevention of forced outages
Cost Lump sum price covering process engineering & software releases
Spares as per actual.
REMOTE CONTROL IMPLIMENTATION
Interest Optimisation of operation Increase of plant & equipment safety Possibility of co-ordinated control of several plants Extension of plant remaining life
Principles
Manned plants are converted to centralised remote control operation through: Modernisation of existing unit local control system Fitting of instrumentation & maintenance free components Remote data transfer Training of operators
Benefits Reduction of O&M costs Increase of availability Optimisation of plant efficiency Faster response to grid demands
Implimentation Feasibility study for plant conversion to remote control Modernisation of plant equipment Water management ayatem & condition monitoring Equipment design, supply & installation Support to reorganise the plant O&M organisation.
Cost Feasibility study costs based on engineering man-hours Lump sum contract for implimentation of plant conversion.
Return on investmentVery short pay back period thanks to low costs of engineering & supplies compared to large reduction in operation in operating costs.
LIFE TIME EXTENSION PACKAGE
Principles
The plant availability & its remaining life depends on condition & edge of the equipment & the way of operation & maintenance. The information gained from a comprehensive assessment allows the determination of improvement measures to achieve an optimum of life time & availability.
Interest Maintain plant at maximum production Minimise all type of outages Operate & maintain plant the most efficient way Optimise timing & amount of investments Make use of the expertise of ALSTOM power hydro
Benefits Knowledge of actual equipment condition Increased life time Increased availability Avoida catastrophic breakdown
Implimentation Condition assessment of plant systems & components by hydro power
plant specialists Survey of operation & maintainance data & procedures Investigation on spare part policy Evaluation of equipment condition & procedures by specialist ofr
ALSTOM power hydro Condition assessment report on equipment & procedures with
reccommedation of liofe time extension measures
Cost
Lump sum fee covering: Personnel, equipment, transport for on site assessment Evaluation of assessment information & data Report on equipment condition with recommendations for life time
extension
Return on investment
High return on investment through: Improved availability & flexibility Reduced outage time due to breakdown Reduced insurance cost.
CONDITION MONITORING PACKAGE
Interest Avoids catastropic damages Knowledge of equipment condition at all times Improvement of global availability of the plant Permits on-condition rather than periodic maintenance Access to ALSTOM power hydro large database
Principles
The trend survey of basic measurable physical values spread over key locations of the plant allows to detect the critical wear of the parts far before ot may cause a severe damage leading to an unplanned outage.
Benefits Increase of availability Optimisation of maintenance costs Avoidance of unplanned shut-downs Unplanned shutdown ratio guarantee
Implimentation Installation of an on-line condition monitoring system Transmission of relevant plant data in the condition monitoring center of
ALSTOM power hydro Continuous supervision & trend monitoring of relevant plant operation data Evaluation of plant equipment condition by experienced ALSTOM power
hydro specialist Periodic report on condition, specific recommendations for maintenance &
inspection activities availability rate.
Cost
Monthly fee based on duration of contract covering: Instrumentation monitoring system Installation & commisioning Reports & recommendations
Return on investment
High pay back- thanks to: Avoidance of outages due to unplanned shut-downs Reduction of O&M costs Savings on insurance costs.
FULL RELIABILITY PACKAGE
Principles
The condition & design of the plant equipment & its operation & maintenance are the main parameters with regards to its reliability. Based on a focused analysis of the equipment & working procedures, a detailed technical & economical investigation is carried out with the aim to reach full operational reliability of the plant.
Interest Ideally designed for peaking hydro plants Alowsto achieve maximum availability & minimum maintenance
shutdowns Allows to improve the procedures used in operation & maintenance
Benefits Actual condition status of the equipment Measures to optomise equipment condition, operation, maintenance,
training & spares Means to prevent forced outages Increase of reliability rate.
Cost
Lump sum fee covering: Personnel, equipment, etc… foe assessment & data collection Studies on plant condition, RAM data, design modifications Report wih studies & measures to achieve full reliability.
Return on investmentAllows to access the economic & effective improvement measures to impliment.
Implimentation Equipment condition assessment with collection of operation, maintenance
& spare inventory data Plant audit & operation, maintenance & staff Evaluation of equipment condition & RAM analysis Condition report with proposals for improvement measures Design modification studies
PLANNED MAINTENANCE
Principles
ALSTOM power hydro provides the scheduled maintenance of the hydro plant in accordance with the wishes of the client.
ALSTOM power is able to design different types of maintenance programmes for all equipment in a hydro power plant. This includes the prepareation of maintenance procedures as well as personnel recruitment & training. Planned maintenance programme covers:
Preventive maintenance Periodical maintenance Schedule maintenance Diagnostic
Interest Access to ALSTOM power hydro worldwide experience & skills Outsourcing of planned maintenance.
Benefits Controlled & forecasted maintenance costs Assurance to benefit of the most skilled screws for any type of components Maintenance preogrammes to optimise equipment’s condition, operation,
maintenance training & spare parts. Access to ALSTOM power hydro large maintenance data nase.
Gaurantee
Planned outage lead time
Implementation Plant equipment assessment & spare parts inventory Agreement on scope & programme with the client Maintenance programme & spare parts procurement Execution of planned maintenance according to schedule Completion report & recommendation
Cost Lump sum fes for manpower Cost plus fees for spare parts.
Return on investment
Taking advantage of a large fleet effect ALSTOM power hydro is able tp propose competitive maintenance services prices.
TOTAL MAINTENANCE
Principles
After a full condition assessment of the power plant(s), share of scopes & responsibilities are agreed on with the operator. Prior to the date of effectiveness of the contract, maintenance procedures are prepared as wel as personnel recruitment & training. Taking into account the production constraints, a maintenance schedule is established & spare parts are procured.
The client is totally relieved of any maintenance conceren & can concentrate on operation & energy delivery to the grid.
Interest Allows to concentrate on operations & electricity sale Access to ALSTOM power hydro worldwide experience & skills.
Gaurantee Availability garauntee Forced outage ratio
Benefits Controlled & forecasted maintenance costs Possible takeover by ALSTOM of exsting maintenance crew Assurance of benefit of the most skilled crews necessary to support the
HPP operation & maintenance Access to ALSTOM power hydro large maintenance data base.
Implimetation Basic agreement on revenue/risk sharing Power plant condition assessment Spare parts inventory recommendation & budget Maintenance procedures development Hiring & training of personnel Management of the maintenance deprtment of HPP facility for the duration
of the contract Demobilisation plan at the end of the contract
Cost
Monthly fixed & variable fees.
Return on investment Client is in partnership with a service provider whose interest is also to cut
down the costs while optimising the quality of maintenance
Taking advantage of a large fleet effect ALSTOM power hydro is able to propse maintenance competitive prices.
FULL OPERATION & MAINTENANCE
Principles
After a full condition assessment of the power plant(s), a production plan is agreed on with the client. Prior to the date of effectiveness the contract, op0eration & maintenance procedures are prepared as well as personnel recruitment & training. Taking into account the electricity market & demand constraints, ALSTOM power hydro establishes a long term production plan & a maintenance schedule.The client is totally relieved of any operation & maintenance concern & can concentrate on energy sale to the grid.
Interest Allows to concentrate on electricity sale Access to ALSTOM power hydro worldwide experience & skills.
Gaurantee Availability gaurantee Production level
Benefits Controlled & forecasted O&M costs Possible take over by ALSTOM of existing O&M crew Assurance to bvenifit of the most skilled crews necessary to support the
HPP operation & maintenance Access to ALSTOM power hydro large maintenance data base.
Implementation Basic agreement on revenue/risk sharing Power plant condition assessment Spare parts inventory & recommendation & budget Operation & maintemance procedures development. Hiring & training of personnel Management of the HPP facility for the duration of the contract Demobilisation at the end of the contract
Cost
Monthly fixed & variable fees.
Return on investment Client is in partnership with a service provider whose interst is also to cut
down the costs while optimising the level of production
Taking advantage of a large fleet effct ALSTOM power hydro is able to propose O&M competitive prices.
FULL RELIABLITY PACKAGE
Principles
The condition & design of the plant equipment & its operation & maintenance are the main parameters with regards to its reliability. Based on a focused analysis of the equipment & working procedures, a detailed technical & economical investigation is carried out with the aim to reach full operational reliability of the plant.
Interest Ideally design to peaking hydro plants Allows to achieve maximum availability minimum maintenance shutdowns Allows to improve the procedures used in operation & maintenance
Benefits Actual condition status of the equipment Measures to optimise equipment condition, operation, maintenance,
training & spares Means to prevent forced outages Increase of reliability rate
Cost
Lump sum fee covering: Personnel, equipment, etc… for assessment & data collection Studies of plant condition, RAM data, design modifications Report with studies & maesure to achieve full reliability
Return on investment
Allows to access the economic & effective improvement measures to implement
Implementation Equipment condition assessment with collection of operation, amintenance
& sapre inventory data Plant audit on opeeration, maintenance & staff Evaluation of equipment condition & RAM analysis Condition report with proposals for improvement measures Design modification studies.
SOLUTIONS
MINI HYDRO SOLUTIONS
ALSTOM have developed a complete mini hydro solution: MINI-AQUA, which integrates the hydro-turbine, generator & the control system in a single & optimised product.
MINI-AQUA has been designed to the highest possible return on investment: Short delivery times, to optimise your investment program. Effective turnkey solution, to gaurantee a project. Optimum performance, to maximise the future revenues. High reliability to ensure return on investment. Easy installation within civil works to reduce construction risks. Cost effective solution to minimise investment outlay.
ALSTOM have taken a lgobal approach in order to produce an integrated product. Working together, technical developers have combined their vast knowledge of hydroelectrical science & technology to design a single mini-hydro concept incorporating the turbine, generator & control system
Mini-aqua is a single & global solution for producing energy from mini hydro resources.
The ALSTOM power hydraulic technology centre in Grenoble, France, ahs a worldwide reputation for inventing high performance hydraulic solutions. Mini-aqua benefits directly from this research.
The ALSTOM power generator technology centre in Birr, Switzerland, leads the worldwide activities of generaotrs, investigating new tachnologhies such as powerformer or variable speed. A specific range of standardise small generators has been developed to complement mini-aqua.
The development of control system & the design of solutions for electrical equipment supply are co-ordinated worldwide. The control system used in mini-aqua is the aqua. In one compact package, it provides all the necessary control, monitoring, voltage regulation, speed governing, synchyronising, coupling & electrical protections.
For high speed applications, mini-aqua incorporates pelton type turbines & high speed generators directly coupled to them.
Two configurations are available: Horizontal shaft with one or two injectors. Vertical shaft with four or more injectors.
Multi injectors nozzles vertical solution is preferable for higher outputs & when operations with a very wide range of flows is required. Horizontal solution is generaly used foe lower outputs undeer higher heads. It is simple to install resulting in economical civil works. These machines give very good performances on a large range of flows, provided the head doesnot significantky fluctuate. We have selected a modular standardisation approach, which allows to size the machines precisely to to site requirements & keep the advantages of the standardisation.
The efficiency of high head mini-aqua remains at very high level even if the discharge varies significantly.
For medium head applications mini-aqua incorporates francis turbines & more often the generators are directly coupled to them. Three configurations are available:
FHS, Francis horizontal shaft, single runner. FHS, Francis horizontal shaft, double runner. FHS, Francis vertical shaft.
FHS is the most common type of mini-hydro. It is easy to install resulting in economical civil works. It is easily accessible & maintenance is simple. FHD is very similar to FHS type , but dedicated to higher discharges. Its shaft crosses the water passages.
To optimise future revenues of production against the immediate economy of investment, ALSTOM have selected a modular standization approach. The design is standardized & the turbine size is adusted to the hydraulic charecteristics of the site. Whatever its size, mini-aqua components will always be consistent. FV is preferable for higher outputs. Its interface with the civil worhs is usually more important.
For low head applications, mini-aqua incorporates kalpan turbines of the “S” type family, with generators coupled directly ot it or indirectly through a gear box for larger outputs under a lower head.
ALSTOM have selected “Sam”, the upstream elbow type, for a better performance compared with any other “S” type turbine.
The advanteges of this configuration compared to other “S” types are: A straight draft tube leading to better efficiencies. The excavation required for cavitation control is less deep. A smaller runner admits the same discharge.
These enabling more economic civil works & increased production. Sam can be installed in different positions to optimise the civil works.
These mahines are very tolerant of all hydraulic conditions & they offer good performances over a very wide range of flows & heads. A fully standardized range with predetermined dimensions has been design to cover energy needs from 500kW to 15MW. Careful attention has been paid to the components selection to gaurantee economy & reliability.
For vey low head applications, mini-aqua incoprporates kalpan turbines, usually with high speed generators coupled indirectly through a gearbox.
Two configurations are available: Pit type, open pit bulb, horizontal or slightly inclined shaft. Kaf type, kalpan with frontospiral case, vertical shaft.
Pit has been significantly designed for appliocations with high flows of water. It incorporates a kalpan type runner, in a straight & horizontal hydraulic duct. As standard, the gearbox is parallel which is the more economical & optionally of epicyclical type to reduce losses. The generator & the gearbox are installed in an accessible open pit. The pit walls can be made of concrete or steel for higher heads to reduce building width.
Kaf is a fronto spiral vertical turbine, smplified for mini-hydro applications. The spiral case is larger than a kalpan, it has a rectangular section & is made of concrete. The distributer is usually fixed for simplification or optionally adjustable when operation on a wider range of discharges & heads is required.
A fully standardized range has been design cover all needs from 300kW to 10MW. All solution use the same standard components as the Sam family to garauntee economy & reliability.When one choose ALSTOM power solution, the benefit is from the unique expertyise of a long established company.
A centuary ago, ALSTOM were pioneers in the field of hydroelectric activity. Since that time, they have continued to be at the forefront of innovation & developing new technologies to improve their products.
Today their hydro refference list is impressive, totlling more than 220000MW. Among them they have been involved in yhe construction of more than 3000 mini-hydro stations worldwide.
Whatever the needs, ALSTOM can supply with a trouble free product to give thes best economical reliable solution.
HYDRO POWER SOLUTION
Whatever hydro needs, ALSTOM can help. Their business approach is quite simple- they believe that behind each custoemr’s concern lies the potential
opportunity ot improve its profitability. ALSTOM can offer the widest range of optimised solutions worldwide on a watr to wire basis.
ALSTOM have invested in new facilities all over the world & in new simulation tools to offer the best possible quality. Their internal programme, quality focus, has been redeployed to gaurantee the highest quality, from design to commissioning.
Experts at ALSTOM power’s worldwide technology centrers are constantly striving to increase the efficiency of their turbines & generators to help to maximise the return on investment. Th einnovetive solutions & new products such as hooped pelton & breakthrough powerformer generators are being developed to respond to the future needs market. Furthermore, fishfriendly turbines & advanced design for turbine & generators are currently being developed.Unrivaled presence in more than 70 countries means they can work locally to achieve the best possible solutions for projects. With their unique turnkey experience they lead & manage complete hydropower plant projects & supply high quality, technologically advanced power products & services. With the backing of the entire ALSTOM group, they can help to arrange comprehensive financing solutions & contribute to the success of the project.ALSTOM power installed base is the largest with record breaking projects records such as:
Itaipu, Tucurui, Brazil La Grande, Canada Guang Zhou, China
ALSTOM have extensive experience in offering turnkey solutions & in supplying complex projects throughout the world, wheather new or refurbishment programmes. They believe that to meet their customer’s expectations, they must:
Offer a single & effective point of contact to coordinate & interface with all parties
Gaurantee the deadline & performance of the project.
ALSTOM have developed an innovative engineering & construction method to meet a variety of customer needs. They can act as consortium leader for major projects. Incorporating the consulting engineering, civil works & electromechanical components, taking full responsibility for the projects & is optimisation.
ALSTOM power has developed a range of turnkey solutions based upon standardized electromachanical equipment to satisfy all requirements from 500 KW to 15 MW under any head.
These cost effective & reliable hydropower plants are an ideal solution in localised power production for industrial & agricultural applications. Most ageing hydropower plants can be refurbished to geneerate more renewable energy with a high return on investment. Their refurbishment include:
Rehabilitation which renivates the plant to its original performance. Upgrading which improves the original performance of the plant. Replacement of obsolete & worn out control systems with state of the art
technology & equipment.
ALSTOM powe rhydro can work to develop & impliment refurbishment projects. They have:
Extensive experience in condition assessment of hydropower plants produced by varios manufacturers throghout the world.
Technical centers for turbines, generators & control systems, developing specific featurers for refurbishment.
Long-standing, full turnkey capability to optimise the solutio & reduce doentime to the minimum.
Experience in developing innovative financing shcemes.
ALSTOM can help to determine whether a refurbishment makes sense by gauranteeing the investment cost, output improveent & a reduction in operating costs. Keeping a plant up & running at peak performance requires the support of a fully commited response team capable of a global approach. Their service network bached up by alstom service centers in 70 countries, can provide the service team to meet their needs.
ALSTOM can provide tailored service packages, ranging from basic maintenance support such as technical support & customer support line, through to training, a mintenance engineering, condition monitoring, full reliability package, total maintenance & full operation & maintenance. These service packages can be tailored & included in a long term service agreement to suite specific requirements.
Their scope of supply oncludes all services & equipment which constitute the elctrical & machanical systems. ALSTOM also provides core competencies in control systems for all types of hydropower plants in order to optimise power production. Advanced systems nave been specielly developed for rehabilitation. They have installed more than 250 systems worldwide including:
Medium & large Small & mini-hydro Automatic valley control
ALSTOM power can provide generators up to 1000 MVA for any hydropower application to satisfy all the customer’s requirements. With unique features such as the oblique elements & supported by technology canter in Birr, Switzerland, their product range enables their clients to achieve high efficiency rates for both new & refurbishment projects, including:
Large & small hydro generators Small generators Powerformer Diesel generators
Excitation systems
Powerformer is an innovative new generator concept already in operation which produces power directly to the high voltage power line without the need for a step up transformer. ALSTOM power has over 240000 MVA of hydro generators installed throughout the world. ALSTOM power provides a full range of hydro turbines up to 900 MW in order to meet all different customer’s needs. Through their refferences which includes the world’s most efficient machines & our technology center in Grenoble, France, continue to develop effective solutions in terms of cost, technology & environment for new & rehabilitation projects.
ALSTOM is the global specialist in energy & transport infrastructure. The company serves the energy market through its activities in the fields of power generation, power transmission & distribution & conversion & the transport market through its activities in rail & marine. Following the sale of its electrical contracting activity, finalised on 20th July 2001, ALSTOM has annual sales in excess of 22billion euros & employs 1,20,000 people in over 70 countries. The company is listed in the Paris, London & New York stock exchanges.
ALSTOM power is one of the world’s leading electro mechanical companies with an annual turnover in excess of 11.9billion euros & some 50,000 people worldwide.ALSTOM power India is engaged in design, engineering, procurement, commissioning, servicing & renovation & modernisation of total power plants for utility & industrial users. It is also engaged in the development & supply of air pollution control systems & equipment for pollution control & conversion of energy. Current projects under execution include Hazira, Korba, Nayveli & Talcher. The company’s manufacturing facility is located at Vadodara & Gujarat. The company is listed in BSE & NSE.
A brief description of the six business segments of ALSTOM power India limited is given below:
1. Gas plants business
The gas plants business of ALSTOM power India limited along with head centre offers a comprehensive range of environmental friendly solutions with gas turbine base power plants using highly efficient & reliable gas turbines generating electricity at plant efficiencies up to 58%. ALSTOM power has made substantial contribution to the development of India’s power generating capabilities in the gas turbine combined cycle market. It has built nearly 180MW of combined cycle power plants for India’s biggest utility NTPC. It has built & put into successful operation India’s first IPP GVK Jegurupadu 235MW combined cycle power plant & is currently commissioning a 165.1 MW combined cycle plant for Gujurat State Energy Corporation. Company has recently signed contract to engineer, procure & construct second phase of
Jegurupadu CCPP of GVK industries. Apart from this the company is pursuing several other projects.
2. Steam business
The steam business of ALSTOM power India limited along with its lead centre designs & supplies completely integrated & cost efficient steam power plant solutions, including engineering & project implementation. This comprehensive approach to plant business is based on our very broad scope of products & services. ALSTOM power offers the complete range of large reheat & non-reheat of steam turbines, condensing & back-pressure up to 1500 MW. Several modular product families are available to meet every need. ALSTOM power turbo generators can be provided for base load, cycling or peak load applications, up to 1800 MVA with air, gas/water cooling, depending on the rating.
Recently progress has been made in further development of air-cooled turbo generators, which can now be offered for applications up to 350 MVA. The turbo generators are designed to meet the most stringent requirements that clients can expect in terms of availability, maintainability, efficiency & environmentally sound production processes.In India the company has a team of experienced & dedicated engineers who can provide the entire range of services in engineering, project management, supply management & erection of the plant for the civil, mechanical & electrical components. The company is executing India’s first coal based IPP i.e. 250 MW Lignite Fired Power Plant (LFPP) at Nayveli in Tamil Nadu. The company is pursuing several other projects.
3. Industrial turbine segment
Industrial turbine segment caters to the power generation & prime mover steam turbine requirements up to 100 MW & gas turbines up to 50 MW.
Backpressure & condensing steam turbines to meet varied configurations as per customer needs are designed by the unit & manufactured at Baroda factory with assistance from lead centres whenever required. Equipment like generators, condensers, heaters, electric panels & associated sub-systems are also purchased, integrated & supply to give a consolidated solution to the customer.
In India, there are over 250 installations of industrial steam turbines & associated equipment supplied by the unit.
4. Hydro power segment
ALSTOM power India limited along with its lead centre undertakes turnkey hydro projects including the supply of hydraulic turbines & pimp turbines,
hydro generators & generator motors, generators for diesel applications & gates of all ranges. In each of our product areas we provide leading edge technologies like Powerformer- a new high voltage generator concept, which eliminates the need for step-up transformer.
ALSTOM power India limited has a very strong presence in India in the hydro power sector. They are the pioneers in introducing latest technologies in India in terms of control systems, turbines & generators. The latest unit capacity hydro plant in India Koyna- IV 4*250 MW is supplied by ALSTOM power. The company has also recently secured a contract from NHPC for supply of E&M equipments for 4*78.5 MW Dhauliganga Hydroelectric Project.
In line with government initiatives in promoting small hydro power plants, company has started manufacturing small hydro turbines at its Vadodara works. ALSTOM power India can offer to its customers hydro power plants based on pelton, francis, elbow & pit type kalpan turbines.
5. Environment control services
ALSTOM power India has been active in the field of environment protection since 1960s. today the company is been recognised as a leading organization in the development & manufacture of air pollution control, resource recovery & conservation of energy. The broad spectrum of products & systems includes electrostatic precipitators, fabric filters, flue gas cleaning system, scrubbers etc…
The products & systems also include ash handling plants for cooled fired boilers which includes bottom ash, ash from economiser & air pre-heating & fly ash from ESP’s or fabric filters.
6. Customer service segment
ALSTOM power India limited with its comprehensive service organization has the capability in every aspect of power plant service. This covers the complete range of steam power plants, industrial power plants, gas & combined cycle power plants & hydroelectric power plants.
The service range from traditional spare part handling & field service support of individual power plant components up to & include full power plant management.In-house expertise is available for all technologies & components in power generation including- boiler, turbine generator, balance of plant, controls & electrical equipment & environmental equipment.In order to be closer to the customer & serve him better, customer service segment in India has a network of service representative spread all over the
country. Repair centres at Vadodara can repair steam, gas turbines & generators.
ALSTOM power India has established manufacturing & service facilities at Vadodara. The company supplies industrial steam turbines for various industries, heat exchanger equipments for power plants, mini hydro turbines & components for hydro sector, service & repairs for steam turbines & generators for utilities & captive power plants. The factory does heat exchanger engineering, heavy fabrication, machining & assembly of components.
SUMMER TRAINING PROJECT
FORECASTING OF HYDRO-ELECTRIC PROJECTS BY
N.H.P.C.
ABOUT N.H.P.C.
“WATER POWER FOR SUSTAINABLE SOCIO-ECONOMIC DEVELOPMENT & NATION BIULDING” this is what NHPC believs. NHPC was incororated in the year 1975 with an authorised capital of Rs. 2000 Millions. It is the single largest power utility in India with experience, expertise & capabilities to undertake multidimentional activities such as planning, survey & invertigation, design & engineering, construction, operation & maintenance, renovation, modernisation & upgrading of hydroelectric projects, a “concept to commissioning” endeavor.
Its achievements include an installed capacity of 2175 MW, another 2370 MW under construction & more than 20,000 MW under survey & investigation.
In terms of performance as per MOU signed with ministry of power, NHPC achieved a distiction of eight successive excellent rating.
It has got ISO 9001 & ISO 14001 certification for its operations at corporate office.
It has got an authorised capital of Rs. 70,000 Millions. NHPC has also got the Government of India’s approval for increasing the authorised share capital to Rs. 100,000 Millions.
It has investment base of over Rs. 155,000 Millions & paid up capital of Rs. 62,709 Millions. In terms of investment NHPC is one of the top ten companies in the country. During the Xth five year plan, it has hydro capacity addition of 4357 MW. Tentative allocation of Rs. 322260 Millions by planning commission for Xth five year plan; an increase of 500% in comparison to Ixth five year plan. Regarding performance it is said that it has registered net profit of Rs. 4,709 Millions, highest ever profit made since its inception. Sales turnover is been found to be of Rs. 13,496 Millions. They have declared a dividend of Rs. 500 Million. It has generated 8912.29 MU during the financial year 2001-2002.
An expert in the arena of hydro power development NHPC has experience of over 27 years. It has consultancy services to other agencies/organisations, both in public & private sector. It has achieved new consultancy assignments tottaling of Rs. 171.80 Millions. NHPC is a registered consultant in the area of hydro power with world bank, Asian Development Bank, African Development Bank & Kuwait
Fund for Arab Economic development.it has a leading consultancy to various organisations in the field of engineering geology, geo physics, construction material & design of hydro electric structures.NHPC has a multidisciplined interactive design division, well equiped & capable of handling intricate design of all the structures associated with hydro power projects from concept to commissioning, operation & maintenance.
They are specialised in the field of engineering geology, geo-physics & construction material, well equiped & capable of handling survey & investigations of hydroelectric projects & preparation of DPR in record time.
Government of India accorded approval for execution of Indira Sagar hydro electric project & Omkareshwar hydro electric project by Narmada Hydroelectric Development Corporation, a joint venture company of NHPC & Government of Madhya Pradesh.
It has successfully commissioned Devighat hydro electric project in Nepal in 1984 in a record time of three & a half years. In the successful commission, we can count Nuwakot Rural Electrification project in Nepal covering 64 villages along with sub-stations & connecting lines one year ahead of schedule. It has very successfully commissioned Kurichu hydro electric project & Nganglam Tintibi Gelephu Single Circuit 132 KV transmission line on turnkey basis for KurichuProject Authority, Government of Bhutsan, ahead of schedule.
FORECASTING
Forecasting is the art & science of predicting future events. Although accurate forecasting has always been important for managing organisations, it has become even more so in recent years. As markets & organisation have become larger & more complex & as change occurs more rapidly, the time fram for making decisions has decreased & the consequences of making poor decisions have become more severe. As a result, the forecasting process must become more systematic & accurate.
Forecasts are usually classified into one of three forecasting time horizons: Short term forecasting Intermediate term forecasting Long term forecasting
1. Short term forecasting
Short term forecasts usually look not more than three months ahead. These forecasts are used for tacticle decision making, such as job sequencing & production scheduling, machine assignments, personnel scheduling, purchasing & inventiry planning & maintenance planning. As such these forecasts tend to be for narrow or specific entities such as demand for a specifis good or services. Because
of the narrow focus & the shorty time intervalsbetween forecasts, short term forecasts are usually obtained using simple statistical methods.
2. Intermediate term forecasts
Intermediate term forecasts have a time frame of three months to two years, with 3-12 months being the most common period. These forecasts are most commonly used for aggregate production planning, including decisions that alter short term capacity such as subcontracting & overtime. Some personnel planning such as to hire new workers, in contrast to actual employee scheduling, & logistical planning decisions also use these forecasts. These are usually made for aggregate entities such as all the products of some type or made bt some facility rather than for individual products.
3. Long term forecasts
Long term forecasts usually have a time frame of two to five years. There most common use is for planning the introduction of new products & major capital expenditures such as new facilities or capacity expansion. Long term forecasts are usually made for aggregate entities or even macroeconomic phenomenonsuch as industrywide sales or gross national product.
Forecasting of hydro-electric projets by NHPC comes under long term forecasting which is of five years forecasting.
PLAN WISE FORECASTING
PROJECTS UNDER Xth PLAN (2002 – 2007)
PROJECTS CAPACITY (MW)
Dulhasti 390Chamera-II 300Dhauliganga 280Teesta-V 510Indira Sagar 1000Sewa- II 120Teesta Low Dam-III 132Omkareshwar 520Purulia 900Bav- II 37Teesta Low Dam-IV 168
PROJECTS UNDER Xith PLAN (2007 – 2012)
PROJECTS CAPACITY
(MW)
Parbati- II 800
Loktak D/S 90
Subansari Lower 2000
Parbati- III 520
Chamera- III 231
Siang Middle 1000
Subansari Upper 2000
Subansari Middle 1600
Pakal Dul 1000
Bursar 1020
URI- II 280
Nimmo Bazgo 45
Bav- I 18
Chutak 18
Dibang 3000
Upper Krishna 810
PROJECTS UNDER XIIth PLAN (2012 – 2017)
PROJECTS CAPACITY
(MW)
Upper Siang 11000
Lower Siang 17000
SRAGEWISE FORECASTING
PROJECTS UNDER Xth PLAN (2002 – 2007)
PROJECTSUNDERCONSTRUCTION
PROJECTSUNDERGOVERNMENTSANCTION
PROJECTSUNDERDPRSTAGE
Dulhasti (390 MW) Sewa- II (120 MW) Bav- II (37 MW)
Chamera- II (300 MW) Teesta Low Dam- III(132 MW)
Teesta Low Dam- IV(168 MW)
Dhauliganga- I ( MW) Omkareshwar (520 MW)
Teesta- V (510 MW) Purulia pss (900 MW)
Indira Sagar- (1000 MW)
PROJECTS UNDER XIh PLAN (2007 – 2012)
PROJECTSUNERCONSTRUCTION
PROJECTSUNDERGOVERNMENTSANCTION
PROJECTSUNDERDPR STAGE
PROJECTSUNDERSTAGE- I (FR)STAGE
Parbati- II(800 MW)
Subansari Lower(2000 MW)
Parbati- III(520 MW)
Bav- I (18 MW)
Loktak DS(900 MW)
Chamera- III(231 MW)
Chutak (18 MW)
Siang Middle(1000 MW)
Dibang (3000 MW)
Pakal Dul(1000 MW)
Upper Krishna(810 MW)
Bursur (1020 MW)
URI- II (280 MW)
Nimmo Bazgo(45 MW)
Subansari Upper(2000 MW)
Subannsari Middle(1600 MW)
PROJECTS UNDER XIIth PLAN (2012 – 2017)
Only two projects are there under XIIth plan under FR stage. Those are:
Upper Siang (11000 MW)
Lower Siang (1700 MW)
SOURCES OF FUNDS
X PLAN XI PLAN XII PLAN TOTAL
EQUITY 14200 15370 NA 29570
INTERNAL RESOURCES 1159 8005 11016 20180
DEVELOPMENTSURCHARGE
470 258 NA 728
BONDS/LOANS/DFL 16397 42481 19109 77987
TOTAL 32226 66114 30125 128465
BID OF KAMENG HYDROELECTRIC PROJECT
A bid can also be called as a tender. A tender is made by a committee. A tender oriented committee defines the trends allowing clients technical & economical requirements to be satisfied. It verifies the tender prepared by the tender teams. For simple projects, these responsibilities develop on the Tender Project manager.
The sales manager are responsible for the negotiations with the client & check contract for confirmity with the tender. They submit disrepencies to the authorised entities, as & where aplicable.
Other reviews enable a constant control at all stages of a contract. This system of reviews is adapted depending upon the complexity of every contract.
MARKET PLAN
Before preparing a tender, the company has to make sure of the place whare the project has to be commissioned. They, first of all have to prepare aplan for the tender, which generally is known as marketing plan. Few of the marketing plan which the company has to keep in mind while preparing a plan are as follows:-
Government policies
The company has to make sure of the government policies of the place wher the project has to be commissioned. The tax structure, the export import duty charges & so on.
Competitors
Competition begins right from the beginning of the invitation for the tenders to all different agencies all over the world. The has to make the tender keeping in mind the points which the competitors can also put in their own respective tenders. We have to supply the latest technology at the lowest possible price with up to the mark quality.
Clients
Before accepting the invitation of the tender we have to have a thorough knowledge of the client for whom we will errect the project. The main point is to know about their financial background wheather they will be able to pay the required amount on time or not.
Demand & supply
What is the exact demang of the client, what they exactly want…this has to keep in mind. We have to fulfil their requirement by supplying their demand. Future demand can also be forecasted to have an ease of supply. Demand can be calculated by keeping in consideration the consumption, investment, Government expenditures & the net exports.
Acceptance of the product by the local people
The product which the company is going to launch, wheather it will be going to be accepted by the local people or not- this has to be make sure before doing that.without the acceptance of the local people, it will be very difficult to successfully accomplishment of the project.
Buying motives
The product for which the project is to be commissioned, wheather the customers will buy the same product or not- this has to keep in mind.
Advertising & publicity
The product should be advertised & publicity should be made through the help of meedia & personnel selling.
Sales promotion
Advertising & publicity should be made for the sales promotion. Sales promotion is made for the successful sales of the product & to place the product in the subconcious mind of the customers before launching the product into the market.
Environmental scanning
Environmental scanning can also be related to the buying motives of the customers. Before advertising, publicity, sales promotion etc… the environment shoulg be scanned thoroughly so that the product could be launched properly.
Segmentation of the market
Market should be divided geographically, demographically etc…Which place or which age group of people are having more demand of the particular product, it should be known properly.
Spending capacity of the consumer
A product couldnot be successful if the consumer do not have enough of spending power. Spending power could be decided on the basis of the income of the consumers.
Cost of the tender
Now coming to the tender,we must keep the cost of the tender as low as possible. But this doesnot mean that we should forget our profit margin. We should keep cost as low so that the Break Even Point is reached. Side by side we must ensure the right quality of product & on time completion of the project.
KEY SUCCESS FACTORS FOR TURNKEY CONTRACTING
The success factors which must be considered for the turnkey contracting are as follows:-
Thorough knowledge of the project
Before taking up the project, the company must have thorough knowledge of the same. Just like a layman will not be able to do any technical work, similarly the company which donot have a clear picture of the project will not be able to accomplish the project successfully. The company must have the technical department & technical men along with them. Which machinary will be required at what part of the project, how much capacity & all such technical details must be available with the company.
Availability of the required items
The company must have required items for the project in hand so as to ease of supply as required. Because of this reason, market plan is been formulated where the demand is been forecasted.
Sound financial backgroud
Not only the client must have a sound financial background but also the company should have a sound financing system. In fact it will become the main criteria to win the tender.
Experience of commissioning similar projects
The company which is going to commission the project must have an experience of commissioning a similar type of project earlier so that they can have an experience of how to accomplish the project successfully in time.
Good frequency of supply
Whenever the demand will be there, supply should be there immediately. It is the key factor for the success of the project. If the supply is good the project could be completed on time.
Power of attorney
The person who is handling the project should have full power of controlling the project. Wherever & whenever necessary decission is to taken, he could easily take such decisions starting from the appointment till the termination of a person.
Legal doccuments
All the legal doccuments should be there attached with the tender. Legal doccuments such as power of attorney from the Chairman, Bank statements, Income Tax clearance certificate, if the company is a joint venture- joint venture agreement etc…
STRATEGY FOR WINNING A BID
The concept of strategy is central to understanding the process of strategic management. The term strategy is derived from the Greek word “Strategos”, which means generalship- the actual direction of military force, as distinct from the policy governing its deployment. Therefore, the word strategy literally means the art of the general. In business parlance, there is no definite meaning assigned to strategy. It is often used loosely to mean a number of things.
For many companies, a single strategy is not only inadequate but also inappropriate. The need is for multiple strategies at different levels. In order to segregate different units or segments, each performing a common set of activities, many companies are organised on the basis of operating divisions or simply divisions. These divisions may also be known as profit centers or Strategic Business Units (SBU). An SBU is any part of a business organization which is treated separately for strategic management propose.
Generally, SBUs are involved in a single line of business. A complementary concept to the SBU, valid for the external environment of a company, is a strategic business area (SBA). It is defined as “a distinctive segment of the environment in which the firm does (or may want to do) business”.
A number of SBUs, relevant for different SBAs, form a cluster of units under a corporate umbrella. Each one of the SBUs has its own functional requirements, or a few measures functional departments, while common functions are grouped under the corporate level. Two types of levels are depicted. One relates to the organisational levels & the other to the strategic levels. The organisational levels are those of the corporate, SBU & functional levels. The strategic levels are those of the corporate, SBU & functional level strategies.
Corporate level strategy is an over arching plan of action covering the various functions performed by various SBUs. The plan deals with the objectives of the company, allocation of resources & co-ordination of the SBUs for optimal performance.
SBU level (or business) strategy is a comprehensive plan providing objectives for SBUs, allocation of resources among functional areas & co-ordination between them for making an optimal contribution to the achievement of corporate level objectives.
Functional strategies deals with a relatively restricted plan providing objectives for a specific function, allocation of resources among different operations within that functional area & co-ordination between them for optimal contribution to the achievement of SBU & corporate level objectives.
Apart from the three levels at which strategic plans are made, occasionally companies plans at some other levels too. Firms often set strategies at a level higher than the corporate level. These are called the societal strategies. Based on a mission statement, a societal strategy is a generalised view of how the corporation relates itself to society in terms of a particular need or a set of needs that it strives to fulfill. Corporate-level strategies could then be based on the societal strategies.
Some strategies are also required to be set at lower levels. One step down the functional level, a company could set its operation-level strategies. Each functional area could have a number of operational strategies. These would deal with a highly specific & narrowly defined area. For instance , a functional strategy at the marketing level could be sub divided into sales, distribution, pricing, product & advertising strategies. Activities in each of the operational areas of marketing, weather sales or advertising could be performed in such a way that they contribute to the functional objectives of the marketing department. The functional strategy of marketing is interlinked with those of the finance, production & personal departments. All these functional strategies operate under the SBU level. Different SBU level strategies are put into actions under the corporate level strategy which, in turn, is derived from the societal level strategy of a corporation. Ideally, a perfect match is envisaged among all strategies at different levels so that a corporation, its constituent companies, their different SBUs, functions in each SBUs & various operational areas in every functional areas are synchronised. Perceived in this manner an organization moves ahead towards its objectives & mission like a wall oiled piece machinery. Such an ideal, though extremely difficult- if not impossible of attainment – is the intent of strategic management.
Few of the srategic points to win a strategy are as follows:-
Overcome the short term crises
Short term crises can be removed by immediate supply of the requirements of the client. The company must have required items for the project in hand so as to ease of supply as required.
Forecast long term development
The company must foresee the future requirements of the clients also. The technical equipments & such machineries should be arranged beforehand in the present which could be required in the long run.
Cost
Cost of the tender should be kept as low as possible. But the profit structure should not be avoided keeping in mind the quality of the product.
Commitment
Operational managers should prepare themselves to be committed towards their job. They should devote themselves towards the project that they are going to commission.
Flexibility
The company should have enough choice so as to overcome the requirements of the client. Flexibility should be there in the products also. If the client donot want a particular product, the company must be able to provide its substitute.
Information
All the detailed information should be mentioned in the tender. Information regarding the way of errecting the project, machineries, legal documents & so on.
Fitness of the strategy
The strategy should be made in such a way that it should match the present & future environment of the corporate as well as of the site. Strategy should match the present environment of the corporate & should match the future at the site.
Overcome the threats posed by the competitors
The company should always be ready with the threats posed by the competitors. Competitors may quote few points which may suite the client but may not suite the company. In such a case, the company should try to adjust with the situation & quote points in favour of themselves.
Technology
The company should use the latest technology in the machineries. They should also mention the details of the tachnologies to be used in the project.
HOW STRATEGIES COULD BE MADE TO WIN THE ORDER
The above strategies could be made in such a way that it should make sure that it would win the bid amongst all the competitors. Few of the ways to make the strategies are as follows:-
Short term crises could be overcome immediate supply of the requirements of the client. The company must have required items for the project in hand so as to ease of supply as required.
Forecesting of the longterm development can be done by foreseeing the future requirements of the clients also. The technical equipments & such machineries should be arranged beforehand in the present which could be required in the long run.
Cost of the tender should be as low as possible keeping in mind the profit structure & quality aspect of the products. Bt keeping the profit structure just above 1% above of the break Even Point offering a considerable quality level we can keep the cost low.
The company should appint dedicated managers into the project who are technically well sound. Those nmanagers prepare themselves to be committed towards their job. They should devote themselves towards the project that they are going to commission.
By keeping the flexibility of the items the company copuld overcome the requirements of the clients. For example if the company donot want item A, the company could able to provide item B.
Strategy should be made in such a way that it should suite both the parties- the client as well as the company. It should match the present & future environment of the corporate as well as of the site. Strategy should match the present environment of the corporate & should match the future at the site.
The company should have the ability to assume the points that the competitors could quote into their tender. Competitors may quote few points which may suite the client but may not suite the company. In such a case, the company should try to adjust with the situation & quote points in favour of themselves. Accordingly they can make their tender.
COMPETITIVE MAPING
Competitive maping is a tool with the help of which the company could able to overcome its weakness & can check its position in the market. The charecteristics which the company feel that it is most important for them may not be important for the client & they can concentrate to the important charecteristics which is important according to the client. A format of competitive maping is given below as an example:-
CHARACTER-ISTICSOF A
COMPANY
COMPANY’SPOINT OF
VIEW
CUSTOMER’SPOINT OF
VIEW
IMPORTANCEOF
IMPROVEMENT(CUSTOMERS)
AFFORD-IBILITY
(COMPANY)
High Quality 3 2 L M
High Cost 4 11 L L
Low Cost 11 1 H H
Good Customer Relation
7 5 M L
Strong Marketing
5 4 L L
Own Plants 8 7 L L
Good Frequency Of Supply
9 8 L L
Flexibility 10 9 L L
Punctual 6 3 M L
Good Reputation
2 6 L L
Sound Financial Background
1 10 L L
RATINGS1: HIGHLY PREFERABLE
11: EAST PREFERABLE
L: LOW
M: MEDIUM
H: HIGH
DESCRIPTION & APPROACH TO THE PROJECT AREA
Kameng hydroelectric project is a run off the river scheme, situated at the downstream of the confluence of the rivers Bichom & Kameng in West Kameng district of Arunachal Pradesh.
The Kameng hydroelectric project was investigated by Central Water Commission (CWC) in December, 1996 & detailed project report was prepared in 1974. Further investigation of the project was taken up by CWC & after completion of further investigation a revised proposal was submitted to North Eastern Council (NEC) by CWC in 1982 envisaging installation of 6000MW capacity to generate 3592 million units in a 90% dependable year. In January, 1985, NEEPCO was identified as the executing agency of the project. MOU between Government of Arunachal Pradesh & NEEPCO was signed on 31/03/1999. Project reniew studies were started in the middle of year 1999.
The scheme envisages construction of two diversion dams, one each on river Bichom & Tenga river, for diverting a total of 140 cumec of water for power generation. Both these dams are proposed to be of concrete gravity type with central spillway & will have maximum hieghts of around 75m & 25m respectively. The water conductor system comprises approximately a 14.5 Km long head race tunnel, surge shaft & an underground penstock system. The power house is located on the right bank of the Kameng river.
All the component sites of the project are approchable via Blipara which is 36 Km from Tezpur on national highway no. 52. The present headquarters of the project is at Bkalukpung which is 24 Km from Balipara & also is the nearest railhead for the project.the road distances to Bhalukpung from Tezpur & Guwahati are 60Km & 235 Km respectively. Guwahati is the gateway to the North East with its airway & broad guage railway station conveniently connecting other regions of India. Tezpur lies on the North Bank of the river Brahmaputra, 175 Km. From Guwahati. The nearest airport to the project site is at Tezpur, connecting mainly Kolkata & Jorhat.
BIDDING PROCEDURE
Purpose
The objective of this procedure is to define & document the process to be followed in identifying, screening & selecting the business opportunitiesfor hydro power plant equipment & projects both new & renovation & modernisation of old projects that maximise the chances & the degree of the company success. It also measures that the customer requirements are mutually agreed upon & a systematic review & finalisation of the contract results in a highly effective & efficient contract documentfor project implimentation with risks acceptable to the company.
Procedure
The variation process of the sales process are:
Pre-acquisition
Bidding
Bid Evaluation
Award
Start of Execution
Overview
The sales & tendering process are described by the following phases:
Pre-acquisition
Upon getting information regarding a prospective opportunity, the prospective customer shall be contacted with a view to ascertain whether this prospect could be a potential opportunity.
Bidding Phase
If the decision is to submit a bid, the unit head shall nominate a sales manager. Sales manager gives the relevant information regarding the project to tendering group. Head of tendering group nominates a proposal manager from the tendering function, who shall be responsible for the preparation of the tender for this project. Proposal manager shall co-ordinate with the project engineering for the project.
Proposal manager shall send general information about the project to concerned functional units. For small hydro projects of rating less than 15 MW & budget proposals sending general information to concerned functional units.
The sales manager along with members of the consortium shall be responsible for leading the combined sales effort. The sales manager shall finalise the consortium agreement, including the DOW in consultation with proposal manager & other functional groups as deemed necessary.
The proposal manager shall finalise the bid structure & bid preparation schedule.
The proposal manager shall be responsible for securing any spacial support that may be required in connection with the AP scope of work for the bid such as legal, financial matters & project insurance.
The sales manager shall prepare price calculations for the bid & will suitably do the bid analysis taking into account the information received from proposal manager & other sources.
In cases of bid submitted by AP in consortium with other ALSTOM Power group companies, the project bid approval shall be taken by the leaderof consortium, however the relevant information shall be submitted by AP.
For budget proposals, bid analysis as per above formats is not necessary.
The proposal manager shall be responsible for the completion of the bid in the manner specified by the customer & its timely submission. All bids shall be distinctly numbered.
Bid Evaluation Phase
The sales manager shall be responsible for co-ordination with customer during the bid evaluation phase & keep all concerned adequately informed during the phase. Any certification or queries from client shall also be replied with stipulated time.
The sales manager shall closely follow up the customer during the evaluation process.
Wherever possible project manager shall be appointed by unit head prior to the start or during contract negotiation, with a view to gain a better understanding of contract.
The proposal manager in co-ordination with project manager, shall incorporate suitably into the contract document the scope & time of purchaser’s inputs.
At this stage it shall be ensured that any difference between requirements as per tender documents & contract made are mutually resolved.
Start of Execution
After confirmation of the customer’s order, the proposal manager shall compile & deliver the documents to project manager for execution.
The proposal manager shall slao organisea handling over meeting with project manager to brief them on the project, the salient features & any special issues. Members of concerned functional units who were involved in the bid submission & negotiation may also participate in the meeting, to clarify major open issues. A check list shall be prepared by proposal manager for the handling over the documents to project manager.
The procedure which is mentioned below is for the Kameng Hydroelectric Project.
Bidding shall be in two stages:STAGE I
In first stage ther will be short listing of prospective bideers. Cost of bid doccument of each package is Rs. 10,000/- ($250 US)
STAGE II
First stage qualified shortlisted bidders shall be intimatted individually & on their request along with necessary draft for cost of 2nd stage bid document packagewise shall submit their bid in ywo envelop system as follows:
Envelop number 1: EMD & Techno-commercial bidEnvelop number 2: Price Bid
In 2nd stage, cost of bid document is Rs.20,000/- ($500 US) for each package.
On the notified date, envelop number 1 will be opened & proce biid for those who are found to be qualified for techno-commercially including EMD, shall be opened on another notified date.
Details of packages are as follows:
Package I:
Construction of Bichom Gravity Dam, Diversion Tunnel, Tunnel intake & the main Tunnel subject to variation upto 500 M either way.
Package II:
Construction of Tenga Concrete Gravity Dam, Diversion Tunnel, main Tunnel subject to variation upto 500 M either way.
Package III:
Construction of main Tunnel, Surge Shaft, civil works of Pressure Shaft, Power house & Tail Race.
PackageIV:
Design, Fabrication, Erection & Commissioning of Penstock Steel Liner & all of the hydro-mechanical works/equipments.
Package V:
All electro-mechanical works in power house including supply, errection, testing & commissioning of Generators, Turbines, Transformers, etc…
Bid is open to firms & voluntarily formed joint ventures from any country in the world.
A joint venture & any of the constituent members of that joint venture shall not be qualified separately for the same work.
Application may be made for shortlisting of prospective bidders for one. Two, three, four, five or all of the above packages.
The request for issuance of the bid document for 1st stage shall have to be made separately for package- I, II, III, IV & V. Such request must accompany a non refundable fee of Indian Rs. 10,000/- or US $ 250 against each package in the form of bank draftpayble in favour of NEEPCO Tld., Shillong, India.
The bid documents shall be used only to those items or joint ventures who possess experience as below:Package I & II: construction of dam & tunnel during last 10 years.Package III: construction of tunnel, power house, shafts etc…during last
10 years.
Package IV: Design, Fabrication, Erection & Commissioning of Penstock Steel Liner & all of the hydro-mechanical works/equipments.
Package V: All electro-mechanical works in power house including supply, errection, testing & commissioning of Generators, Turbines, Transformers, etc…
The bid document may be obtained from the office of the undermentioned from a stipulated date till a particular date at a particular time through an authorised agent or NEEPCO may promptly dispatch the documents by registered airmail if sa requested, but under no circumstances NEEPCO will held responsible for late delivery or loss of the documents so mailed.
Application for the bid must be submitted in a sealed envelop not later than a stipulated time & date. Applications must be delivered by hand or by registered mail to the address given below. In case of holiday the bid will be received in the following working day.
Late reciept of the application for the bid either by hand or by ost shall be rejected.
NEEPCO will select the tenderets to be qualified for the IInd stage bidding but will not accept any claim regarding either the procedure or the results of the shortlisting. Within 180 days of the date of submission of application, NEEPCO will inform in writing all selected prospective bidders, the names of all shortlisted applicants without giving any reason for the decision.
NEEPCO reserves the right ot reject or accept any or all applications & to annual the shortlisting process & reject all applicants, without thereby incurring any liability to the affected applicants.
All expenses relatiing to the participation in this bid shall be done by the applicants & in no case will such expecses be reimbursed. The documents submitted by the applicants will not be returned.
The above conditions must be send to the following address:
General Manager ( C )Contracts & procurement
NEEPCO Ltd., Lower New ColonyShillong- 7930033
LIST OF FORMS ATTACHED IN THE BID
FORM N° 1
LETTER OF INTENT TO PARTICIPATE IN THE TENDERING
Dy. General Manager (E)C&P, NEEPCO LtdBrookland Compund, Lower New ColonySHILLONG – 793003
Fax : 91 – 0364 – 2222578Telephone : 91 – 0364 – 222934, 224582
Sub : Letter of Interest to participate in the Short Listing of Prospective Bidders
Dear Sir,
In accordance with the Short Listing Bid Document, the underdesigned representative:…………………………………………………………………………………
……………… (Full Name and Title)is legally authorised to act in name and on the account of the Applicant
Firm………………………………………………………………………………………………………………………………………………
(Name and Address of the Applicant)Company :
………………………………………………………………………………………………………………………………………………
Partnership :……………………………………………………………………………………………………………………………………………….
JointVenture :……………………………………………………………………….
composed by : (In case of Partnership/Joint Venture/Consortium)
(a) As Leading Company………………………………………………………………………and the following other companies :
(b) …………………………………………………………………………
(c) …………………………………………………………………………
(d) …………………………………………………………………………
By means of a certified power of attorney :………………………………………………………………………………………………… (Place and Date of the Power of Attorney)
attached to these documents, the undersigned hereby requests to participate in the Short Listing of Prospective Bidders for Package V Electro-Mechanical Works of the Kameng Hydro Electric Project in Arunachal Pradesh, India.
It is understood and agreed that the information submitted therein is to be used by NEEPCO in determining, according to their sole judgement and discretion, the qualifications of prospective Bidders to perform the work in connection with the Kameng Hydro Electric Project. In consideration of being permitted to submitt his qualifications as a prospective contractor for review the undersigned waives any claim against NEEPCO that might arise with respect to their decision as to a prospective Bidder’s qualifications. It is understood that the decision of NEEPCO, with respect to the qualification of any prospective contractor, is final and no subject to appeal of any kind.
A prospective Bidder will not be considered qualified by NEEPCO unless he possesses reputation, ability, experience, qualified personnel, plant and equipment and net current assets or working capital sufficient in the judgement of NEEPCO to render it capable for satisfactorily completing the work, and meet all contractual obligations, should the works be awarded to him.
The signing of the Forms by the undersigned guarantees the truth and accuracy of all statements and of all answers to the interrogatories hereinafter made.
The undersigned herby authorizes and requests any public official, engineer, surety company, bank, depository, material or equipment, manufacturer or distributor or any other person, firm or corporation to furnish any pertinent information in accordance with requests by NEEPCO deemed necesssary to verify the information and assurances provided by the undersigned herein, or regarding the competence and general reputation of the prospective Bidder.
The undersigned agrees that further qualifying information, if any, may be requested and agrees to furnish any such information at the request of NEEPCO.
The undersigned hereby indicates the address, in which he establishes his legal domicile, to the effects of this Short Listing procedure, to which NEEPCO may direct his correspondence.
Mail Address………………………………………………………………………
Telex Address………………………………………………………………………
Facsimile Address………………………………………………………………………
Phone N°………………………………………………………………………
E mail Address………………………………………………………………………
……………………………… ………………………… (Place and Date) (The Representative)
FORM N° 2
STATEMENT OF APPLICANT
1. Name of Applicant
2. Address of Head Office
Telephone N° :Fax N° :Cable Address :E mail address :
3. Regional Office Address(if any)
Telephone N° :Fax N° :Cable Address :E mail address :
4. Local Office Address(if any)
Telephone N° :Fax N° :Cable Address :E mail address :
5. Legal Status
6. Place and Date ofEstablishment
7. Applying Alone : Yes/No Applying as Partner of a Joint Venture Yes/No
8. Branch of SpecializationMain Lines of Business : …………………………………………….…
Nominal Capital Rs. (Original Currency)
………………………………………………(Equivalent USD)
10. Fully Paid Capital : Rs. (Original Currency)
………………………………………(Equivalent USD)
Fully Paid capital plusRetaining Earnings : Rs.
(Original Currency)
…………………………………………(Equivalent USD
4. Exchange Rate Adoptedfor item 9 :…………………………………………………………………
12. Name and Address of…………………………………………………………………Leading Company (in…………………………………………………………………case the Applicant is of a…………………………………………………………………Joint Venture or…………………………………………………………………Consortium (Name and Address of Head Office)
13 Number and Category of Permanent Employees :
Remarks :Item 7 : Delete the part not applicableItem 8 : Field of activities means, but is not limited to, hydropower
plants, turbines, generators, cranes, switchyard equipmentetc.
Item 12 : Joint Venture Agreement shall be attached
…………………………. ………………………………….(Place and Date) (The Representative)
FORM N° 3
FINANCIAL STATUS OF APPLICANT
Fill in the blanks for each of the last three fiscal years, each to be certified by Chartered or Public Accountant or Chamber of Commerce or Banks.
1. Share Capital 1998-99 1999-00 2000-01 2001-02 2002-03
(original currency : )
(equivalent in USD : )
2. Total current assets
(original currency : )
(equivalent in USD : )
2.1 Total cash and deposits
(original currency : )
(equivalent in USD : )
2.2 Deposits with bids orotherwise as guarantees (duewithin ninety (90) days)
(original currency : )
(equivalent in USD : )
2.3 Amounts receivable fromcompleted contracts (duewithin ninety (90) days)
(original currency : )
(equivalent in USD : )
2.4 Amounts receivable fromuncompleted contracts afterdeducting retention (duewithin ninety (90) days)
1998-99 1999-00 2000-01 2001-02 2002-03
(original currency : )
(equivalent in USD : )
2.5 Stocks and bonds at present market value
(original currency : )
(equivalent in USD : )
2.6 Buildings and loans at present withdrawal value
(original currency : )
(equivalent in USD : )
2.7 Other current assets (duewithin ninety (90) days)
(original currency : )
(equivalent in USD : )3. Total current liabilities
(original currency : )
(equivalent in USD : )
3.1 Notes payables (to banks forregular and certified checksand to others)
(original currency : )
(equivalent in USD : )
3.2 Account payable
(original currency : )
(equivalent in USD : )
3 .3 Other current liabilities 1998-99 1999-00 2000-01 2001-02 2002-03
(original currency : )
(equivalent in USD : )
4. Total assets
(original currency : )
(equivalent in USD : )
5. Total liabilities
(original currency : )
(equivalent in USD : )
6. Current credit resources
(original currency : )
(equivalent in USD : )7. Net worth
(original currency : )
(equivalent in USD : )
8. Total profit before tax
(original currency : )
(equivalent in USD : )
9. Turn over in financial years
(original currency : )
(equivalent in USD : )
10. Exchange rate adopted for the equivalent inUSD :
11. Bank references address :…………………………………………………………….
12. Credit Line (list names of institutions and maximum Credit Line Line ; attach respective letters from sureties)
Institution Maximum Amount in US $………………….. Kindly refer
attachments……………………………..
Remarks :Item 1 : The amount for share capital include retained
Item 6 : The maximum current credit resources the Applicant’s bank(s) hold(s) available for the fulfilment of the Applicant’s obligations for the Project if the Applicant is awarded the contract shall be stated and certified by the bank.
Item 13 : Attach respective letters from banks (Bank Credit Letter)
…………………………………. ………………………………….(Place and Date) (The Representative)
FORM No. 4
EXPERIENCE RECORD OF APPLICANT1. Business experience of the Applicant as a
Contractor under present business name: (Years)
2. Experience of the Applicant in Electro-Mechanical works :
As principal contractor (Years) As sub-contractor (Years)
3. Experience of the Applicant in Electro-mechanical works in :(Describe name of project & executing agency, contract period, contract amount, member of joint venture / Consortium)(1)In the Indian Republic :
……………………………………………………………………………..(2)Elsewhere (Indicate name of the countries) :
……………………………………………………………………………
4. Number of personnel engaged as Key Engineers SupervisoryEmployees of the Applicant (situation personnel As at end of Dec’ 2002)
In the Indian Republic 2084 1031 1053(1)Elsewhere :
Country :
5. Approximate value of electro-mechanical work completed in each year during the past ten (10) years (equivalent in USD)1993 ………………………………………………………………………1994 ………………………………………………………………………1995 ………………………………………………………………………1996 ………………………………………………………………………1997 ………………………………………………………………………1998 ………………………………………………………………………1999 ………………………………………………………………………2000 ………………………………………………………………………2001 ………………………………………………………………………2002 ………………………………………………………………………
……………………………. …………………………………….(Place and Date) (The Representative)
FORM No. 5
KEY PERSONNEL
Give the detailed information of key personnel from whom the Contractor’s Representative could be selected. Fill in a form for each person.
1. Name
2. Date of birth
3. Nationality
Education and degrees
4. Speciality
5. Registration
6. Years of experience years
7. Length of service with Applicant From To
8. Construction experience:Use as many pages as necessary.
(1) Name and country of the project: …………………………………………………………………………………..
(2) Name and address of owner : ………………………………………………………………………………….
(3) Name and address of the Engineer …………………………………………………………………………………
(4) (Consultant) in charge of supervision ………………………………………………………………………………….
(5) Indicate features of the projec size of equipment, work volume and any other particular interest connected with the project: …………………………………………………………………………………..
(6) Position covered in this Project: …………………………………………………………………………………..
(7) Duration of the assignment in the project …………………………………………………………………………………...
………………………… ……………………………….(Place and Date) (The Representative)
FORM No. 6
GENERAL EXPERIENCE
Electro - Mechanical Works successfully completed by the Applicant in the past ten (10) years. Use as many copies as necessary.
1. Name of project:
2. Work performed by the Applicant:
3. Participation in percent (if not alone)
4. Contract amount: original currency:Equivalent in USD:
5. Final amount billed: original currency:Equivalent in USD:
6. Date of commencement as per contract
7. Date of completioni) As per LOI/LOA/Original Contractii) Actual
8. Name and address of owner
9. Name and address of the engineer(consultant) in charge of supervision of theconstruction
10. Source of finance
11. Name of Applicant’s three senior personnel (1) on the project together with their title,function or responsibility (2)
12. Brief description of the project, including any particular or special aspect of the same
………………….… ………………………………… (Place and Date) (The Representative)
Form No.7
Particular Experience Record
Name of Sole Applicant or Partner of a Joint Venture Applicant
ALSTOM Projects India Ltd.
On a separate page, using the format of Form 7A TO 7J, each Applicant or Partner of a joint venture is requested to list all contracts of a similar nature and complexity to the contract for which the Applicant wishes to qualify, undertaken and completed in the past. The value should be based on the currencies of the contracts converted to US dollars, at the date of substantial completion. The particular experience should include the following :-
Turbines Inlet Valves Generators Isolated Phase Bus Duct 33 KV XLPE cables Overhead Cranes Diesel Engine Generators Control & protection Equipment Unit Auxiliary Transformers
Where the Applicant proposes to associate manufacturer(s) for any item(s) of equipment costing in excess of ten (10) percent of the value of the whole works, the information in these forms should also be supplied for each such manufacturer..The information in Form-3A is to be summarised in the table form, as shown below.
Summary- Completed Contracts of Similar Nature and ComplexityName of Project(Reported on Form - 3A)
Co
un
try
Name of Contract
Contractor’s Role (lead partner of JV or otherwise)
Contract value in Million US $*
Yearofschedule completion/actual completion
- @ Exchange rate as on date of award of Contract ,**- Figures arrived using approximate exchange rate values
NB :- To please attach detailed data sheets datasheets, outstanding
developments/significant achievements of the company
wherever possible.
Date: 2003 Signature :
Form No. 8
Equipment Capabilities
Name of Sole Applicant or Partner of a joint venture Applicant
ALSTOM Projects India Limited
The Applicant should provide list of all major equipment for manufacturing and
erection, which he or the manufacturer(s) proposed by him would propose to use
them for the Contract, in separate sheets in a form as shown below:
List of Proposed Equipment
*1 : Classify as "Owned (or name of Partner)", "To be leased" and "To be purchased".A separate form 5A should be prepared for major items of equipment listed in this
Form 5.
No.
Name of equipment Capacity. Or production rate
Nos. of unit
Year of manufacturer
Current ownership *1
Current location (country)
Estimated purchase price (INR per unit)
ANNEXURE - IAPEEJAY
INFORMATION SUPPORT SYSTEM
1.GENERAL INFORMATION
1.1 NAME OF THE COMPANY:
ALSTOM Projects India Ltd.
1.2 REGISTERED OFFICE, PHONE, FAX, WEB SITE:
“The International” 5th Floor,16, Marine Line Cross Road No. 1
Off Maharishi Karve Road, Churchgate,Mumbai- 400020
Phone No. : 205 1256/200 0490/200 0487/200 0528Fax No. : 200 0324
Web Site: www.alstom.co.in
1.3 CHAIRMAN, CEO & SENIOR EXECUTIVES:
Mr. Nicholas Salmon, ChairmanDr. Krishna Pillai, Managing Director
Mr. Naina R Desai, Whole Time DirectorMr. Michel Augonnel
Mr. Alexies FriesMr. K Vasudevan
1.4 DELHI OFFICE ADDRESS, PHONE, FAX:
Chandiwala EstateMaa Ananda Mai Marg, Kalkaji,
New Delhi- 110019Phone No. : 2682 6100 – 6150
Fax No. : 2682 6180
1.5 CEO OF DELHI OFFICE:
Mr. V K Sahni
1.6 CHIEF OF HR:
Mr. Jawaid Asfraf, Executive Director- HR
1.7 HEAD OF PLACEMENT:
Mr. Kalim Kureshi
1. HISTORY & CURRENT PROFILE
2.1 PROMOTERS:
State Bank Of IndiaICICI BankHDFC BankCanara Bank
Bgank of Baroda…
2.2 TOTAL NO. OF EMPLOYESS:
Total no. of employees are 2084 out of which no. of staffs & engineers are 1031 & no. of labours & workers are 1053
2.4 IMPORTANT STAGES OF GROWTH
Results tattle takes ALSTOM to new peak
Alstom Power today hit a 52-week high on the National Stock Exchange (NSE) at Rs 51 and closed at Rs 45.05 today on expectation of better results and value buying, dealers said. Over 5.38 lakh shares changed hands on the NSE.
ALSTOM fails to comply with board composition norm
Equipment major Alstom Power India has failed to comply with Clause 49 of the listing agreement with the stock exchanges regarding the composition the board. The provision clearly stipulates that at least two of the directors on the board should be independent, while there is only one in the case of Alstom Power — K Va
ALSTOM arms merger to lift parnt;s pie to 67%
The stake of French power major Alstom in its India flagship, Alstom Power India Ltd, will go up from 50.99 per cent to 67 per cent once its three other ventures in the country -- Alstom Transport, Alstom Systems and Alstom Power Boiler -- are merged into it.
ALSTOM Power okays of three arms with itself
Alstom today decided to merge Alstom Transport Limited and Alstom Power Boilers Ltd with Alstom Power India Ltd. The Alstom Power board met today in Delhi to consider the amalgamation.
ALSTOM board to consider merger of 3 arms
The board of Alstom Power India, the flagship of the France-based Alstom in the country, is meeting tomorrow to consider amalgamating three group companies with itself.
ALSTOM to finalise local consolidations in 6 months
Alstom group, the French energy transmission and distribution giant, is expected to finalise consolidation of its activities in India in six months. The company operates through five operational outfits, out of a list of 16 legal entities.
2.5 CURRENT BUSINESS ACTIVITIES
NATIONAL/INTERNATIONAL
ALSTOM Power manufactures & install machineries such as Kalpan Turbines, Pelton Turbines, Power Transformers, provides After Sales Services, Execution of all types of projects in Turnkey Basis etc…
3. MARKETING DATA
3.1 PRODUCTS & SERVICES:
KALPAN TURBINES
Kalpan turbines are used for low head application reanging from 12 to 50 meters appx. Due to their runner blades/wicket gates double regulating system, these turbines have high performance charecteristics over a large range of heads & loads. With its present tate of technology, ALSTOM power hydro can design large turbines upto a 10 meter runner diameter & a 220MW unit output. The key components are then devide divided into subassemblies to meet transport limitations.
For the harnessing of large rivers, this type of design & manufacturing method can considerably reduce the investment cost. The experiencec & expertise gained for the large kalpan units are also present in ALSTOM power hydro smaller applications. The following are just a few references showing ALSTOM power htdro technical skill in this field.
The Kalpan turbine has considerable advantages over the other types of machines which may also be used for the same application.
One example of this is seen within the lower range of heads & when the units take part in the network frequency control. Operation with kalpan turbines is then more reliable than with bulb tuebines due to the high inertia of rotating parts. On the other hand, within the range of higher heads, when low load operations are frequent, the kalpan turbine will be better suited then the francis type resulting in high performances due to its double regulating system.
The purpose of the hydraulic design of kalpan turbines is to predict the performances of the machines through calculation methods & then to conduct an experimental chacking to assertain that the machine is best suited to site conditions & meets the client’s operating requirements. ALSTOM power hydro has state of art methods to carry out such studies.
PELTON TURBINES
Impulse type turbine, that is, using the water kinetic energy, pelton turbine can operate under a very large range of heads, from 200 m to 1500 m.
On the basis of its experience, ALSTOM power hydro can offer vertical shaft machines equiped with multi-jat collectors upto output of 350MW appx. with a 400 mm diameter.On the other hand, LASTOM power hydro also designs horizontal shaft single or double runner pelton turbines with one, two or four jets capable of bieng economically used for the lowest discharges.
POWER TRANSFORMERS
ALSTOM has been manufacturing all kinds of transformers up to 525kV rated voltage & 400MVA rated power & reactors in Gebze plant for over 30 years. Not only the production process & tests but the construction & design are also supported by computers. The transformers are manufactured in accordance with VDE 0532 & IEC 76 or any other required international standard.
Some of the parts of a transformer are as follows:1. Core limbs2. L.V. winding3. H.V. winding4. Tapping winding5. conductors6. L.V. bushings7. H.V. bushings8. Pressing equipment9. ON-load tap changer10. Motor drive mechanism11. Oil conservator12. Radiators13. Tank
CUSTOMER SUPPORT LINE
Principles
The customer support line is a free ALSTOM power service established to give hydro plant owners & ALSTOM a forum to jointly discuss technical or oprational hydro isues. The service will respond to minor hydro issues or problems via well defined questions that can be handled by a telephone call, exchange of letters/faxes or by e-mail.
Should the questions raised become more specific or the requested answer lead time very demanding, then the support will be charged in function of the volume of exchange & the time coverage.
Interest
By using the custoemr support line one will obtain hydro related technical assistance in a fast & easy process to help the company to solve their minor technical & operational problems. ALSTOM power hydro will involve experienced & qualified company experts to espress their hydro issues.
Benefits
By using ALSTOM power hydro customer support line one will avoid the time consuming search for the right specialist to address their hydro problems.
Implementation
Through the customer support line one will be able to establish informal contacts with experienced ALSTOM power hydro personnel & thereby solve minor problems with a minimum of effort. ALSTOM power hydro will maintain & distribute ALSTOM contact liss to interested parties. The contact list will provide contact names & phone & fax numbers to be used in acse of problems.
When a customer support line discussion suggests that a more detailed review & more efforts are needed, other ALSTOM power hydro services such as break down support or technical assistance are available. The ALSTOM power cantact person will suggest these other services & advice on ways the customer may limit their problem based on available information.
Cost
The customer support line is free of charge for a limited number of calls.
Should the number exceed a initial credit or complex technical requests involving extensive research & specialists attention be required, then the support will be charged.
Return on investment
The customer support line will lead to: Improved question response time Reduced trouble shooting efforts Reduced outage time.
BREAKDOWN SUPPORT
Principles
Breakdown support is support service from ALSTOM power aimed at the fast & eficient return of hydro generation & the recovery of a plant’s stability due to operational disturbances.
Benefits
By reducing the down time caused by a plant disturbance, breakdown coats sucg as low revenues &/or cost of purchased power may be held to a minimum. In addition, experienced & ready ALSTOM power personnel reduce ones need to maintain such specialised staff resources in-house.
Interest When a breakdown occurs, ALSTOM power will return the unit to normal
operation as quickly as possible. In addition, ALSTOM power will analyse the cause of the breakown in order to recommend a permanent repair.
Within ALSTOM power, breakdowm support is a high priority service designed to deliver the necessary manpower, competence & the most common materials/spares on short notice. Internal ALSTOM systems are used to expidite site works preparation, request preparations & arrange stand by service personnel.
Implementation Breakdown support is a fast response to your breakdown requests using
experienced engineers & repair resources. Based on prevailing conditions & time limits, this service will include analysis of inherent failure mechanisms & causes.
However, should more detaileed tests & analusis be required after the actual recovery of plant operational health, ALSTOM power is ready to discuss such extended studies.
Breakdown support may be used as a stand alone service or as part of a more extensive ALSTOM power service contract. In the latter case moer detailed site conditions suchas response time , type of personnel & stock of spare parts to be identified for that particular plant will be evaluated.
Cost
Breakdown support will be invoicedon a cost plus basis.
Return on investment
Reducing downtime is critical whenever breakdown occurs. The additional cost of a quick response is relatively small compared to the loss of hydro production revenues.
By relying on ALSTOM ower one may: Limiy his/her exposure to loss of revenues
Recover generation output Return the unit to production.
TECHNICAL ASSISTANCE
Principle
Technical assistance is a service from ALSTOM power that provides their customers with the technical competence to improve the operations of their hydro plants. This assistance includes a general technical analysis, the assessment of all hydro plant equipment for operational & life span conditions & planning of future plant upgrade &/or maintenance projects.
Benefits
Br relying on ALSTOM power personnel experience & technical competence, one will be working towards optimal solutions while reducing their own engineering costs.
Interest
ALSTOM power hydro technical assistance service gives to the customers access to ALSTOM’s competence & knoe-how as a world wide supplier mastering all hydro plant equipment technologies.
This service allows one to share their experience of a complete range of hydro plant designs & operating practices.
This unique engineering capability can only be maintained thanks to their wide & diverse installed base.
ALSTOM power hydro technical assistance service is based on a strong internal network of engineering & service resources. This service is supported by a co-ordinated exchange of data between ALSTOM units to ensure the availability & the quality of all relevant product information.
Implimentation
The technical assistance service will include the intervention of qualified engineers who will meet the customer to understand the issue & plan the intervantion with the client.
Then ALSTOM power team shall undertake, as directed, a detailed assessment using up-to-date evaluation tools & methodologies.
All technical assistance services shall be summarised by a confidential technical assistance report including measurement, schedules, interpretation & assessment, as well as their final conclusions & recommendations.
Cost
Terchnical assistance service will be invoiced on a cost plus basis.
Return on investmentBy using ALSTOM Npower one may assess:
Equipment limitations Potential capacity improvements Maximised equipment performance
3.2 COMPETITORS:
The main competitors of ALSTOM Projects India Ltd. are Siemens, General Electrics, ABB, Crompton Greves, BHEL.
3.3 MARKETING STRATEGIES:
Overcome the short term crises
Short term crises can be removed by immediate supply of the requirements of the client. The company must have required items for the project in hand so as to ease of supply as required.
Forecast long term development
The company must foresee the future requirements of the clients also. The technical equipments & such machineries should be arranged beforehand in the present which could be required in the long run.
Cost
Cost of the tender should be kept as low as possible. But the profit structure should not be avoided keeping in mind the quality of the product.
Commitment
Operational managers should prepare themselves to be committed towards their job. They should devote themselves towards the project that they are going to commission.
Flexibility
The company should have enough choice so as to overcome the requirements of the client. Flexibility should be there in the products also. If the client donot want a particular product, the company must be able to provide its substitute. Information
All the detailed information should be mentioned in the tender. Information regarding the way of errecting the project, machineries, legal documents & so on.
Fitness of the strategy
The strategy should be made in such a way that it should match the present & future environment of the corporate as well as of the site. Strategy should match the present environment of the corporate & should match the future at the site.
Overcome the threats posed by the competitors
The company should always be ready with the threats posed by the competitors. Competitors may quote few points which may suite the client but may not suite the company. In such a case, the company should try to adjust with the situation & quote points in favour of themselves.
Technology
The company should use the latest technology in the machineries. They should also mention the details of the tachnologies to be used in the project.
3.4 IT APPLICATIONS IN MAEKETING:
ALSTOM uses two kind of IT applications. One is known as MINT (Marketing Intelligence Network). It is been upgraded in France every day. It is a network in all ALSTOM throughout the world. It basically gives the marketing information happening throughout the world. Another applicationwhat they use is OTMS (Opprtunity Track Management System). It is a general application which is been used in all the departments. It is mainly project concerning application. It is been upgraded by those persons who are been given the responsibility to manage one project- the person who is the proect leader. 3.5 MARKETING CONCERNS:
POWER – THE GLOBAL FULL SERVICE PROVIDERTo strengthen it’s position as a leading player in the power generation market, ALSTOM required in May 2000 ABB’s 50% share in their recently formed joint company, now renamed ALSTOM Power, a new ALSTOM sector. Having
supplied 20% of the world’s total installed power generation capacity, ALSTOM is one of the world’s leading suppliers of turnkey power plents, all types of turbines ( gas, steam, hydro ), generators, boilers, electrical control systems, environmental protection systems as well as a complete range of services, including plant modernisation & long term operation & maintenance, project development & financing.As the full service provider in power generation, ALSTOM offers an extensive range of competitive products & services which also set leading standards in environmental impact. Through increased R&D investment in new & existing product development, ALSYOM contineus to provide customers with the innovative solutions they need to remain competitive.
TRANSMISSION & DISTRIBUTION
One of the world leaders in power transmission & distribution, ALSTOM is present at all stages in the supply chain of electricity. From the power plant to the end user, ALSTOM offers the widest & most reliable range of products & services in the market. It’s power delivery systems are designed to meet the requirements of utilities, industries, local authorities & infrastructure companies. At the lesding stage of research, ALSTOM develops tomorrow’s services such as Energy Network Management & solution in harmony with the environment.
TRANSPORT
Populations are growing & cities are expanding throughout the world. In this context, mobility is a key factor in economic growth & dvelopment. ALSTOM contributes greatly to this mobility by providing a full range of rail solutions.Since the acquisition of a major share of Fiat Ferroviaria, the company has become one of the rail industry’s biggest supplier of products, services & systems, within an 18% market share world wide in the domains in which it is active.
The company is renowned for it’s comprehensive range of state-of-the-art rolling stock, including TGV’s & high speed tilting trains for inter city operations, tramways & metros of urban transit, & locomotive & freight wagons. It also provides train control systems, train life management services, railroad maintenance & turnkey or full concession transport system solutions. ALSTOM has been able to anticipate world trends & offer it’s customers innovative solution at the lowest cost, largely by developing & applying it’s unique concept of modularity, optic design, which makes the most of standardization & customization.
MARINE
The cruise market has taken off in recent years. With an order book which has reached record levels, ALSTOM ahs become the world leader in cruise ship building , with 33% f the market. The company build ship with high added value
their performance, reliability & spedd are constantly improving while increasingly respecting the environment.
ALSTOM’s expertise is based on innovation, its keystone is control over construction costs & lead times.CONTRACTING
ALSTOM is the Eurean leader in systems integration, associated services, ellectrical & technical intallations applied to energy, transport & communication infrastructures, process industries & buildings. With expertise in high & low voltage applications, automated systems, mechanical applications, as well as air conditioning engineering, water systems, communication networks & intigration of new technologies, ALSTOM provides high performance solutions adapted to the specific needs of each client, whether for installation, maintenance & global service.
POWER CONVERSION
ALSTOM is an expert in converting electricity into useable energy. It markets comprehensive solutions & associated services for the automated running of manufacturing processes with a range of high performance products, motors. Drives, generators & power electronic equipment.
GLOBAL SERCICE COMMITMENT
ALSTOM power hydro understands the importance of being capable & available at all times. Keeping the plant up & renning at peak performance requires a service team that is fully commited. The key factor is the availability of the right people who are responsive, solution oriented & capable of a total plant approach.
RANGE OF SERVICES
There is a general trend among power producers to allow suppliers to take increased responsibility for service & maintainance.LASTOM power is well suited in this area & has developed specific packages for hydroopwer plants basd upon its extensive experience. These packages may be grouped & tailored made to provide total solutions that meet your requirements.
Maintainance support Breakdown support Technical support Customer support line Spare parts
O&M process improvements Training
Maintenance engineering Remote & implimantation
Availability focus package Lifetime extensions Condition monitoring Full reliability package
Long term service agreements Planneed maintenance Total maintenance Full O&M
TAILOR MADE SOLUTIONS
ALSTOM can provide tailor made service solutions from training, condition monitoring, maintenance engineering support & similar solutions up to total maintenance outsourcing & full O&M.
LOCAL PRESENCE
ALSTOM powr has a total of 23 hydro business units located aroud the world that are backed up by 70 ALSTOM power sevice centres. This allows quick & proffesional response to customer needs.
3.6 NATURE OF JOBS OFFERED:
The nature of jobs offered to the company is of Turnkey Contracting basis. These are basically the projects in which the company has to do all the jobs starting from manufacturing or supplying of machineries till the errection of the project.
3.7 RECRUITMENT POLICIES:
No recruitment will be made without a formal approval, as in Section 3.1, and without following the prescribed recruitment procedures.
Whenever a vacancy occurs, the first attempt should be to examine whether the work load could be shared amongst others by enriching their work content, or by other alternatives like automation or system restructuring or by upgrading the skills of some existing personnel.
All selections would be made through duly constituted Interview Panels. No recruitment shall be made which widely deviates from the approved job
specifications. Temptations to induct over qualified persons should be resisted unless there are clear career possibilities for such professionals within or outside the Segment/Functional Area.
Recruitment expenses have to be budgeted by the respective Segments/Functional Groups based on additional manpower projections for the year in question.
4. FINANCIAL PROFILE
BACKGROUND
ALSTOM power India limited is a publicly owned company, incorporated on September 2, 1992 as Asea Brown Boveri Management Limited (ABB), registered with the registrar of companies, Maharashtra. ALSTOM power, NV, a company incorporated in the Netherlands holds 51% of the equity & the balance equity is geld by the public & various financial institutions.
The company is engaged in the business of design, engineering, manufacturing, procurement, supply, commissioning, servicing & renovation & modernisation of power plants for utility & industrial users. It is also engaged in the development & solution of ait pollution control systems, equipment for pollution control & conversion of energy.
PROPOSED AMALGAMATION
At a meeting of the board of directors of the company held on February 13, 2002, a resolution was passed for the amalgamation of the following companies with ALSTOM power India limited:
ALSTOM Transport Limited (ATL) ALSTOM Power Boilers Limited (APBL) ALSTOM Systems Limited (ASL)
In pursuance of this decision, the scheme of arrangement for amalgamation was filed with the Honourable High Courts of Judicature at Delhi & Bombay in accordance with the provisions of section 394 of the companies act, 1956. the scheme has been approved by the shareholders & the creditors of the transferor & transferee companies.
Further, the petition for approval of the scheme filed by ASL & ATL has been approved by the High Court of Judicature at Delhi on May 28, 2002. However, the petition of APBL & the company is pending approval of the Bombay High Court.
ACCOUNTING POLICIES
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared under the historical cost convention, on the accrual basis of accounting & in accordance with the accounting principles generally accepted in India.
In preparing & presenting these financial statements, the company has , for the first time adopted the following accounting standards recently issued by the Institute of Chartered Accountant of India (ICAI):
Accounting standard 17: Segment reporting Accounting standard 18: Related Party Accounting standard 19: Leases Accounting standard 20: Earnings Per Share Accounting standard 22: Accounting for taxes & income
FIXED ASSETS
Fixed assets are stated at cost less accumulated depreciation. Cost of fixed assets comprises purchase price, duties, levies & any other costs relating to the acquisition & installation of the asset. Interest & financing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, until the date the assets are ready for use are capitalised & included in the cost of asset.
Software costs capitalised consist of cost of acquisition of product design software, software license fee & cost of system integration services.
DEPRICIATION/AMORTISATION
Depreciation is provided on the straight line basis. On additions & disposals, depreciation is provided for the period of using during the year. The following rates of depreciation are determined on the basis of useful lives of the assets estimated by the management or at rates specified in Chapter 15 to the companies act, 1956, whichever is higher.
ASSTES PERCENTAGEFactory Buildings 3.34Other Buildings 1.63Plant & Machinery 4.75Data Processing Equipment 33.33Furniture & Fixtures 10.00Motor Vehicles 20.00
Leasehold assets are amortised over the period of the lease. Technical know-how fees are amortised over a period of 6 years from the year in which it becomes payable. Software costs are amortised over a period of 5 years. Assets costing below Rs.5000/- are fully depreciated in the year of purchase.
During the year, the company revised the estimated useful life of furniture & fixtures & motor vehicles to 10 years & 5 years respectively. Accordingly, depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of these assets. Earlier, these assets were depreciated at the rates specified in Chapter 15 to the companies act, 1956, the impact of this change is not material to the financial statements.
FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transactions. Foreign currency assets & liabilities are translated into rupees at the exchange rates prevailing on the balance sheet date or the forward cover rates, as applicable. Exchange differences in translation of foreign currency assets & liabilities & realised gains & losses on foreign exchange transactions, other than those relating to fixed assets are recognised in the profit & loss account. Exchange differences arising on liabilities incurred for the purpose of acquiring fixed assets are adjusting in the carrying value of the respective fixed assets.
INVENTORIES
Inventories are stated at the lower of cost & net realisable value. The cost of various categories of inventories is arrived at as follows:
Stores, spares, raw materials & components at rates determined on the weighted average method.
Work-in-progress & finished goods based on annual average cost of production including appropriate proportion of cost of conversion. Excise duty is included in the value of finished goods inventory.
Packing materials, loose tools & consumables are expensed to the profit & loss account at the point of purchase.
Contract work-in-progress is valued at lower of cost or net realisable value up to the stage of completion. Cost includes direct materials, labour cost & appropriate overheads.
REVENUE RECOGNITION
1. Revenues from long-term contracts. Contract prices are either fixed or subject to price escalation clauses. Revenues are recognised on a percentage completion method, based on the billing schedules agreed with the customers. The relevant cost is recognised in the financial statements in the year of recognition of revenues. Recognition of profit is adjusted to ensure that it does not exceed the estimated overall contract margin. In addition, if it is expected that the contract will make a loss, the estimated loss is provided for in the books of account. Such losses are based on technical assessments.Amounts due in respect of price escalation claims and/or variation in contract work approved by the customers are recognised as revenue only if
the contract allows for such claims or variations and/or there is evidence that the customer has accepted it.Liquidated damages/penalties are provided for based on management’s assessment of the estimated liability as per contractual terms and/or acceptance.
2. Revenues from sale of products & services. Revenues from sale of products are recognised on despatch of goods to customers & are net of excise duty, sales tax & trade discounts. Revenues from services are rendered.
RETIREMENT BENEFITS
Contribution to provident fund/superannuation fund is made at a predetermined rate to the Provident Fund Trust/Superannuation Fund Trust and charged to the profit & loss account.
RESEARCH & DEVELOPMENT
All revenue expenses pertaining to research & development are charged to profit & loss account in the year in which they are incurred.
LEASES
Assets acquired under operating lease are recognised as an expense in the profit & loss account on a straight-line basis over the lease term.
TAXATION
Provision for income tax is mad e on the assessable income at the tax rate applicable to the relevant assessment year. Deferred income tax are recognised for the future tax consequences attributable to timing differences between the financial statement determination of income & there recognition for tax purposes. The effect on deferred tax assets & liabilities of a change in tax rates is recognised in income using the tax rates & tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised & carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
In accordance with AS-22- accounting for taxes on income, the accumulated net deferred tax liability of Rs.113910 thousand arising on account of timing differences as at January 2001 has been adjusted to general reserve.
A BRIEF AUDIT REPORT- MARCH 31, 20021. The company has maintained proper records showing full particulars,
including quantitative details & situation of fixed assets. The company has physically verified fixed assets in accordance with their rotational
plan & no material discrepancies were noted. In the opinion of the auditors, the frequency of verification is reasonable in relation to the size of business & nature of its assets.
2. The fixed assets of the company have not been revalued during the period.
3. The inventories of finished goods, raw materials, components ( excluding goods in transit), stores & spares parts of the company have been physically verified by the management during the period, in the opinion of the auditors, the frequency of verification is reasonable.
4. The procedures of physical verification of inventories followed by management are reasonable & adequate in relation to the size of the company & the nature of its business.
5. The discrepancies between the physical & book inventories were not material & have been properly dealt with in the books of account.
6. The valuation of inventories is spared & proper, in accordance with generally accepted accounting principals & is on a basis consistent with the previous year.
7. The company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under section 3 of the act and/or from companies under the same management as defined under section 370 (1B) of the act.
8. During the period, the company has granted unsecured loans to companies listed in the register maintained under section 301 & to companies under some management a defined under section 370 (1B) of the act. In the opinion of the auditors, the rate of interest & the terms & conditions of these loans are not prima facie prejudicial to the interest of the company.
9. The parties to whom loans or advances in the nature of loans have been given by the company are repaying the principal amount as stipulated & are also regular in the payment of interest, where applicable.
10. The internal control procedures of the company relating to the purchase of stores, raw materials, including components, plant & machinery, equipment & other assets & for the sale of goods, are adequate & commensurate with the size of the company & the nature of its business.
11. In the opinion of the auditors & according to the information & explanations given to them & having regard to the fact that some of the items purchased are of a special nature & suitable alternative sources do not exist for obtaining comparative quotations, the transactions of purchase of good & materials & sale of goods, materials & services, made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the act & aggregating during the period to Rs.50,000/- or more in respect of each party were made at prices which are reasonable having regard to prevailing market prices, as available with the company for such goods, materials or services or the prices at which transactions for similar goods, materials or services are made with other parties.
12. The company has a reasonable system of determining unserviceable or damaged stores, raw materials, components & finished goods. In the opinion of the auditors, adequate provisions have been made for unserviceable or damaged stores, raw materials, components & finished goods.
13. The company has not accepted any deposits from the public. However, pursuant to its scheme of arrangement of ABB, some deposits of ABB were transferred to the company. The transferrer company has confirmed that it has complied with the provisions of section 58A of the act & the companies rules 1975, with regard to the aforesaid fixed deposits. During the year, the deposits were repaid by the company.
14. Reasonable records for the sale & disposal of scrap have been maintained by the company. The company does not have any by-products.
15. The company has an internal audit system commensurate with the size & nature of its business.
16. The company has been regular in depositing provident fund & employees state insurance dues with the appropriate authorities.
17. Other than income tax dues of Rs.2,665 thousand, there were no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty & excise duty which were outstanding at March 31, 2002 for a period of more than 6 months from the date they become payable.
18. There were no personal expenses charged to the profit & loss account for the 15 month period ended March 31, 2002.
19. The company is not a sick industrial company within the meaning of section 3(1)(o) of the sick industrial companies act, 1985.
20. The company has a reasonable system, commensurate with the size & nature of its business, for recording receipts, issues & consumption of materials & stores & allocating materials consumed to the relative jobs.
21. In relation to issue & allocation of stores, the system of authorisation at proper levels & system of internal control is commensurate with the size of the company & nature of its business. The company has a reasonable system of allocation of man-hours utilised to the relative contracts, commensurate with its size & nature of business.
A BRIEF ANALYSYS REPORT OF A MANAGEMENT DISCUSSION
OVERVIEW
The economy is passing through a difficult phase caused by several unfavourable domestic & external developments. Domestic output & demand conditions were adversely effected by poor performance in industrial sectors in previous two years.
The overall growth of 5.4% of GDP in 2001-2002 is supported by growth rate of 5.7% in agriculture & allied sectors, 3.3% in industry & 6.5% in services.
The infrastructure sectors such as railways, power, urban infrastructure needed to see much greater reform before investments can be made for including further growth. In each case the regulatory mechanism is still inadequate, as in the provision of users charges. A great amount of effort has been made to reform power sector & progress has been made in the restructuring of the State Electricity Boards (SEBs) & the formation of the State Electricity Regulatory Commission. Focus on reform has shifted from power generation to distribution including measures taken for viability of SEB’s. the key issue inhibiting investments in this sector is presence of large transmission & distribution losses, a high proportion of which is essentially theft & the levy of inadequate user charges of different consumer segments. It is naturally difficult that any commercial investment is made unless the revenue generated is at least equal to the cost of supply. Reform in this sector must therefore concentrate exclusively on curing of theft & restructuring of user charges, so that investment in this sector can become viable in both public & private sectors.
As prior year figures for 2000 are for 12 months, the figures in this report are not directly comparable with that of current period which are of 15 month period.
OPERATING RESULTS OF THE COMPANY
Despite a difficult economic & competitive environment, the company was able to consolidate its position as under:
Period Ended March 31, 2002 (Rs. Millions)
Year Ended December 31, 2002 (Rs. Millions)
Orders Received 4,465 5,396Revenues 8,105 2,844Order Backlog 4,949 8,877Profit Before Taxation 606 119Profit After Taxation 398 113EPS 9.61 2.73
The orders received of Rs. 4,465 million ha been lower in the current period compared to precious year due to shift in projects.
Revenues has gone up substantially due to active execution of large projects like Hazira, Nayveli, Korba & Talcher.
The company generated a net profit before tax of Rs.606 million compared to Rs.119 million in previous year. This achievement was due to accelerated
despatches & corresponding revenues & implementation of aggressive cost reduction programmes.
FINANCE
In order to align the company’s management information reporting with the ALSTOM group worldwide, the carat reporting package (tool used worldwide by ALSTOM for management reporting) was successfully implemented across all businesses of the company. The company has also undertaken 6 sigma project for timeliness & quality in group reporting.
Initiative taken by management in focussing on a “Cash for Growth” programme have enabled the company to improve its cash flow by better management for working capital.
Actions have been initiated to reduce general expenses through overall agreements, common for ALSTOM group companies in India, with vendors to derive the benefits accruing from higher volumes.
INTERNAL CONTROL
The company has adequate system of internal control relating to purchase of stores, raw materials including components, plant & machinery, equipment & other similar assets & for the sale of goods commensurate with the size of the company & nature of business.
The company has also internal control system for a speedy compilation of accounts & management information reports & to comply with applicable laws & regulations.
The company has detailed budgetary control system. The actual performance is reviewed with reference to budgets monthly by the management.
The company has a well defined organization structure, authority levels & internal rules & guidelines for conducting business transactions.
The company has formed an auditor committee on February 27, 2001. the terms of reference of the audit committee include the matters mentioned in clause 49(II) of the listing agreement with the stock exchanges. The committee acts as a link between the statutory/internal auditors & the board of directors of the company.
OPPORTUNITIES & THREAT
OPPORTUNITIES
Power generation in India continued to experience ea sluggish growth, which saw a merge 4,000 MW being added to the installed capacity last year. This creates an opportunity for the company having capability as a total solution provider & having local presence in India.
The company has a strong local service base with competitive time schedules & prices.
The company has a strong in-house strength of engineering, supply management & project management with a sound track record of delivering power plants within very tight schedules demanded by utility & IPP customers.
The Government’s initiative to grant mega projects status to the Sipat 3*660 MW supercritical project of NTPC is a welcome step.
Special schemes have been devised to refurbish old plants to improve their performance.
THREATS
The issue of payment security as offered by SEB’s has made investors very cautious. The rgulatory mechanism is still inadequate, as is the provision of user charges.
Restrictive policies of Government, e.g. purchase price preference policy continues in spite of protest from private sector.
RISKS & CONCERNS
RISKS
Inordinate delays continues in getting clearances from Government departments for setting up power plants, both in the private & public sector. There is no single window mechanism available for getting clearances.
Reform initiatives tend to fall at the last mile with new initiatives being proposed with none getting fully implemented.
CONCERNS
Order booking of the company for 2002-03 is a major concern.
There is a lack of unified political will in implementing the various power sector reforms announced by the Government. Large amounts of dues from SEBs to Central Power Sector undertakings is also a concern.
There is high potential of hydro power generation but implementation hurdle are discouraging.
5. HUMAN RESOURCE DEPARTMENT
5.1 TRAINING
IN-COMPANY TRAINEES Policy
The underlying policy governing the induction of Graduate Engineer Trainees/Management Trainees is two fold –to induct “young blood” in the organisation and mould them according to the Company culture, and, to ensure that these recruitments provide the company with a trained and skilled manpower pool keeping in view the long term growth and business strategy of the company .
In-company trainees, i.e. Graduate Engineer Trainees/ Management Trainees should be recruited against anticipated permanent positions.
Procedure
Corporate HR, in consultation with the Segment Directors, and based on the medium and long term requirements of Management Personnel, would consolidate the need for Management Trainees. This exercise should be completed latest by August /September for recruitments in the coming year.
The Sector Management Team would review and decide the number of trainees that should be inducted in any given calendar year through campus interview.
Only reputed educational and professional institutions known for the academic excellence will be considered for campus interviews.
To avoid duplication of efforts and to uniformly project the Corporate image of the Company with both the students and the institutions, Corporate HR shall, in consultation with the Location HR Managers concerned, evolve a strategy for Campus Interviews so that only one interview team visits the same institution during any academic year.
A consolidated list of acceptable candidates would be prepared by Corporate HR and these candidates would then be finally interviewed before employment offers are released.
While Corporate HR would be responsible for the induction and Training, the ownership for the Trainees would be with respective Segments.
Training Procedure :
The duration of the Training would be one year. The Management Trainees/Graduate Engineer Trainees would be inducted as a group and given an initial orientation training of 3 months. The remaining period of 9 months could be divided between site training, power plant familiarisation, on the job training etc., depending upon the requirements.
Corporate HR, in consultation with the Segment Directors and the Location HR Managers would evolve a uniform Induction and subsequent on-the-job training programme. It shall be the responsibility of the HR Managers to ensure the trainees receive the prescribed training inputs. They will facilitate the socialisation process, and be responsible for monitoring their progress, and co-ordinating the Performance Evaluation.
Absorption in the Permanent Cadre
On successful completion of training, the Management Trainees/Graduate Engineer Trainees would be absorbed in the Company in the format attached at Appendix - 1.
Performance of every MT/GET, shall be assessed periodically. Unsatisfactory performers should be counseled and if required, encouraged to leave the training.
A separate Manual on Management Trainee/Graduate Engineer Trainees Scheme, would be made available detailing the terms and conditions of service for the Management Training Scheme/Graduate Engineer Trainees –which shall be updated on a periodic /need basis.
SUMMER TRAINEES/APRAINTEES Summer Trainees
The Company extends the facility of providing summer training to a limited number of students from recognised and reputed institutions offering management education or engineering institutions like IITs, RECs etc. The basic objective is to provide an opportunity to the students to expose themselves to industrial environment, and meaningfully relate their academic knowledge to industrial
practices, thus providing a nationally relevant interface between academic institutions and Industry. They should not be treated as temporary `hands’ to perform routine departmental activities or for clearing pending work. They should be given meaningful projects relevant to their area of specialisation, and the Head of the Department where the student is placed is responsible for providing a supportive learning experience.
Since the quality of the corporate relationship with these institutions where we go for campus interviews depends largely on the quality of feed-back the summer trainees give to the institutions and the fellow students, it is important to project a positive image of the Company in our interaction with them. Additionally, it is considered a part of our social responsibility towards providing a supportive contribution to the Institutes of learning.
Summer trainees may be taken for a maximum period of two to three months for the purpose of undertaking a specific project or initiating or upgrading a management system or conducting a technical/productivity/cost saving/developmental project or for data collection/analysis etc. under the supervision and guidance of the head of the user Department. The trainees should be involved in meaningful activity which will add value both to their learning and substantially contribute to the user Department.
Normally, no stipend is payable to a Summer Trainee. However, in exceptional cases, the proposal for payment of stipend to a Summer Trainee may be approved by the Corporate HR Department.
For such trainees from overseas Group Companies or other overseas organisations, the stipend is Rs.3000/- per month if accommodation is provided in the company guest house/transit flat/hostel on a sharing basis, or otherwise, and if no such accommodation is provided, the monthly stipend is Rs.5,000/- per month. The stipend is meant to assist the expenses incurred on meals, conveyance, accommodation etc. The duration of such training may vary between 6 - 12 weeks.
Apprentices
Location HR Managers are responsible for inducting the required number of apprentices as prescribed by the State Apprenticeship Advisor under the Apprentices Act, 1961 and the Rules framed thereunder.
The concerned HR Department shall evolve, in consultation with Department Manager concerned, a detailed training programme for the Apprentices.
CONDITION SERVICE
The Conditions of Service in ALSTOM Power India Limited would be comparable with the best companies in India, in the Business Segments we operate.
Corporate HR Department shall maintain updated data on industry practices, and shall initiate discussions at appropriate intervals at the Senior Management level whenever major changes in our practices are indicated in view of the changes in the industry practice. Of course, this does not mean that the individual items of conditions of service will be automatically revised in isolation whenever any of our competitors change any of the components of the service conditions. Conditions of service will be viewed in their totality.
Conditions of service for all the bargainable employees shall be governed by the long term collective bargaining agreements with their recognised representative unions/associations, and on the basis of the industry-cum-region practices. However, the conditions of services of comparable companies in the region should be judged in their totality. The best individual features of our industrial neighbour should not be compared in isolation with our conditions of services. As far as possible, we shall aim to achieve certain uniformity of service conditions on all company basis.The conditions of service given under this policy are applicable to all the employees of the Company and cover areas like probation, transfer, deputation, service agreement bonds, separations and retirements.The Location HR department may be contacted for detailed rules and regulations pertaining to the conditions of service.
PROBATION The purpose of probation is to closely observe, monitor and guide the new entrant to settle down into the organisation, assimilate its culture and discharge the duties and responsibilities in accordance with the acceptable standards. Therefore, during the probationary period, the performance and conduct of the employee should be supportively monitored on a continuous basis.
Probationary Period
Probationary period for all categories of permanent employees is as stipulated in their terms and conditions of appointment/the employment offer. In general, the probationary period for all categores of permanent employees will be not less than six months.
Probation Report
The Location HR Manager shall be responsible for realising the Probation Reports.
Confirmation
On successful completion of the probation, the probationer should be confirmed in writing
In respect of employees joining the services of the company who have been confirmed prior to the date of annual salary review, the employees will be eligible for the normal annual salary review. In respect of employees, who are on probation at the time of the annual salary review will be eligible for salary review on confirmation in the services of the Company w.e.f. the date of confirmation, based on the guidelines followed for all other employees during the annual salary review.
Further, while fixing the salaries of the employees at the time of appointment mentioned above, no provision should be made in anticipation of the annual salary review to be effected for the employees and the salaries should be fixed in conformity with those payable to others performing similar jobs in the company.
Extension of the period of probation
In case of certain situations beyond the control of the employee e.g. sickness, accidents or any such justifiable and mitigating circumstances, where the performance of the employee cannot be assessed due to insufficient period of service, an extension may be granted covering the period of such absence, but not exceeding 3 months. The decision regarding extension of probation will be taken along with the immediate supervisor in consultation with the Segment/Functional Head.
Termination during the period of probation
The probationer whose services are found to be unsatisfactory either during the probationary period or the extended period of probation should immediately be informed in writing about the same. The services of a probationer whose performance was unsatisfactory will promptly be terminated at the end of the probationary period, which would tantamount to non-renewal of the contract of employment.
The letter terminating the services of a probationer will be signed by the appointing authority.
SERVICE AGREEMENT BOND Long Duration Training & Development Programmes
Training & Development of employees at all levels is an integral part of the Company’s Human Resource Development strategies.
In pursuance of the training and development policy of the Company, employees are nominated/sponsored for long term Technical Training, Management Development, Post/Pre Doctoral Research programmes in India and abroad, which involves substantial investments of time and money.
With a view to ensure that the objectives of nominating/sponsoring employees to the aforesaid programmes are fulfilled and the Company derives benefits out of the learnings imparted to the employee, the employees nominated/sponsored for long term trainings in India or abroad will be required to execute a Service Agreement Bond with the Company, the details of which are given below:
Period of training, service period and bond amount:
Period of Training Period of Service to be completed after the program
Amount of Bond
Less than 3 months Nil Nil3 months to 6 months 2 years 100 TINRMore than 6 months 3 years 300 TINR
Special Assignments
For fulfilling special development initiatives undertaken by the Company or for execution of specialised projects, employees are selected to be members of Specialised Task Forces, for which the company develops the competencies of the employees through specific training & development programmes.
With a view to ensure that the aforesaid development initiatives/special projects do not suffer by virtue of Team Members leaving the services of the company, for which the Team Members are specifically trained at significant cost by the Company, the employees selected as Team Members of such teams will be required to execute a Service Agreement Bond with the Company, the validity period of which shall be three (3) years service after completion of the training. In case of infringement or violation of the bond, the concerned employee will have to pay to the Company a bond amount of 300 TINR.
General
The responsibility for obtaining the Service Agreement Bond from the concerned employees would be that of the location HR.The Service Agreement Bond executed by the employee would be kept at the place of execution in the safe custody of the location HR Managers and Unit Heads where no HR Manager is positioned. In case of transfer of the employee, the Service Agreement Bond may be transferred to the new place of posting, alongwith other records.
SEPARATION Resignation
An employee who wishes to leave the services of the company will submit the resignation letter to his/her superior, giving the notice as under:a) Employees in the Supervisory & Workmen category : As stipulated in
the terms and conditions of employment b) All other Employees : Three months
(or as stipulated in the terms and conditions of employment)
The notice period from the employee is for the company to locate a replacement, and therefore, should be insisted upon. Notice period will not ordinarily be waived unless continued presence of the employee concerned is not in the best interest of the Company.
Before accepting the resignation letter, the Head of the Department will discuss with the employee concerned to find out the reasons for submitting the resignation letter. Inspite of such separations being painful for both sides, promises that cannot be met by way of career growth/compensation should not be made.
To maintain uniformity of practice and also to ensure that there is no possibility of any legal complications, the following procedure shall be followed in cases of resignation:
a) The formal letter of resignation will be forwarded to the Location HR Manager with the recommendations of the Departmental Head. Such resignation letter will be sent in original.
b) The Location HR Department shall obtain in writing on the letter of resignation itself, the decision regarding acceptance of resignation by the Managing Director or concerned Segment/Executive Directors. The processing time for deciding on acceptance of resignation or otherwise should not normally exceed 10 days.
c) The letter of acceptance of the resignation in the format at Appendix-1 can be communicated by the Managing Director or concerned Segment/Executive Directors or the concerned Location HR Manager.
d) The acceptance letter will be sent through the concerned Departmental Head and a copy endorsed to the Finance Department/ Controller.
e) After the acceptance of the resignation, the Location HR Department shall be responsible for obtaining the ‘Exit Interview' in the line manager/functional head to ascertain facts relating to the resignation. On a six monthly basis (i.e.
January - June and July - December), the data thus collected from exit interviews will be statistically processed and analysed with a view to provide feedback to check the employee turnover. The analysis by Location HR Department will be in terms of location, department, category, academic background, particularly institutions from where they graduated, age, sex and other demographic parameters, length of service, and more importantly, the type of organisations they are moving to, the compensation package offered by them and the precise reasons of leaving the company’s service. The analysis so done shall be shared with the concerned Segment/Executive Directors and the Corporate HR Group.
f) Once the acceptance of resignation is communicated to the employee, the concerned employee will be responsible to obtain the necessary clearances from various groups/departments on the No Dues Checklist. The completed checklist should be provided to the HR department at least a week before the due relieving date.
g) Subject to the above, on the date of the relieving, the employee shall be provided with the following:
- Relieving Letter, in the format attached at Appendix -4.- Service Certificate, in the format attached at Appendix -5.- Final Settlement.
Termination of services of permanent employees
The services of a probationer whose performance was unsatisfactory will be promptly terminated at the end of the probationary period or any extension thereof, which would tantamount to non-renewal of the contract of employment. In all such cases of extension of probation, the probationer will be communicated in writing, reasons for such extension(s) and given an opportunity to improve performance.
Services of permanent employees will be terminated only according to the terms of appointment/employment and after complying with all statutory requirements, by giving the stipulated notice or salary in lieu thereof. Any termination of an employee by the company will need clearance from Corporate HR and the Managing Director.
If the services of a permanent employee are to be terminated consequent to disciplinary procedure, it should be ensured that all legal formalities in connection with the domestic enquiry are fully complied with. The Location HR Manager will be responsible for doing so.
RETIREMENTS
Retirement age
All employees shall retire from the services of the company on reaching the age of superannuation according to the terms of appointment.
Ordinarily, no extension will be given beyond the age of superannuation.
The date of birth as shown in the School Leaving Certificate or any other documentary evidence submitted by the employee and accepted by the company at the time of appointment shall be final for determining the age of the employee.
3.4 IT APPLICATIONS IN MAEKETING:
ALSTOM uses two kind of IT applications. One is known as MINT (Marketing Intelligence Network). It is been upgraded in France every day. It is a network in all ALSTOM throughout the world. It basically gives the marketing information happening throughout the world. Another applicationwhat they use is OTMS (Opprtunity Track Management System). It is a general application which is been used in all the departments. It is mainly project concerning application. It is been upgraded by those persons who are been given the responsibility to manage one project- the person who is the proect leader.
5.3 RECRUITMENT- POLICY GUIDLINES General
No recruitment will be made without a formal approval, as in Section 3.1, and without following the prescribed recruitment procedures.
Whenever a vacancy occurs, the first attempt should be to examine whether the work load could be shared amongst others by enriching their work content, or by other alternatives like automation or system restructuring or by upgrading the skills of some existing personnel.
All selections would be made through duly constituted Interview Panels. No recruitment shall be made which widely deviates from the approved job specifications. Temptations to induct over qualified persons should be resisted unless there are clear career possibilities for such professionals within or outside the Segment/Functional Area.
Recruitment expenses have to be budgeted by the respective Segments/Functional Groups based on additional manpower projections for the year in question.
Employment of Local Person
For all workmen and all non-supervisory staff, the recruitment should preferably be from local candidates. Only where suitable local candidates are not available, others would be considered.
For the supervisory positions, the recruitment would be broad based, though, other things being equal, local candidates would be preferred.
The recruitment of other Managerial cadre employees would be from any part of the country or overseas reflecting truly the cosmopolitan complexion of ALSTOM Power India Limited.
Re-engagementAn employee who has left the services of the Company will not normally be re-engaged. However, this guideline could be relaxed in exceptional cases, with prior clearance of Corporate HR and approval of the Managing Director , where there is clear evidence that the employee concerned has increased his occupational value since leaving the Company, and his service record with the company was consistently good. In every case of re-engagement, fresh appointment letter should be issued. The norms for re-employment including terms of placement will be similar to any fresh employment from outside on merit. It should, however, be ensured on re-engagement that the concerned employee is not getting undue advantage in compensation, position etc. vis-à-vis employees who have remained with the company.
SourcesFollowing sources should be utilised in the order of priority given below while sourcing candidates for recruitment.
a) Internal Candidates
Employees of the Company would have the first option for consideration for filling up a vacancy. All internal vacancies in the company shall be compulsorily notified in the Job Postings Database and ALSTOM’s Jobs Online on the intranet. All employees shall be eligible to apply against the advertised vacancies.
The internal resources would fall into the following categories:
1. Persons who fit the advertised job requirements and can be spared with or without replacement immediately. In such cases, it would be desirable to release the employee, since this is an opportunity for opening up new career growth options for the candidate. While making a decision regarding the release of the candidates, an overall macro-level view should be taken as distinct from Segment/Function related interest only.
2. Persons may be a near fit to the position requirements, but may require some basic exposure and training. The specific training/exposure required in such cases must be indicated. Such employees should also be encouraged to move over from their present positions in order to provide them with good career opportunities, provided they are good performers and have the required potential for growth.
3. There may be employees who may be excellent for the job in question, but cannot be spared immediately due to exigencies of work. In such cases, it would be desirable that a time frame is agreed together between the concerned Segments/Departments, with any consequential steps for replacement, within which the candidate can be spared.
In all cases, the employee selected for the position should be ready for relocation, if necessary, for his career advancement. Applications of internal candidates should not be held back, unless the application does not meet the minimum job criteria, in which case, the same should be communicated to the concerned applicant.
All the positions will be advertised on the Company’s electronic job posting databases. Nevertheless, in order to facilitate the process of generating internal applicants who may not have access to the electronic databases, Corporate HR will forward copies of all internal vacancy advertisements to Location HR groups who will then disseminate the same in the location in a suitable manner.
All applications received against internal vacancies will be screened. The attempt would be to select the candidate who is the “best fit” for the position. For ensuring this, the shortlisted candidates will normally be required to appear in an interview as part of the selection process.
Whenever an internal candidate has been selected for a particular vacancy, the time period of his/her release from the current position may be discussed and agreed upon by the concerned Segments/Departments. Normally, the employee would be required to complete the assignments currently being attended to, and hand over the charge.
b) Data Bank
The Corporate and the Location HR Groups shall maintain a Data Bank of professionals whose candidature could be considered whenever suitable vacancies occur.
The candidates should also be encouraged to register their profile at ALSTOM’s website – www.careers.alstom.com, where the same will be stored and can be retrieved by any of the ALSTOM companies looking for a matching profile.
c) Unsolicited applications/Walk in candidates
With increasing mobility amongst qualified professionals in the job market seeking challenging career openings, unsolicited job applications have become a potential source of recruitment. Hence, it is necessary to reciprocate to these applicants not only as a matter of courtesy but also keeping in view the Company-wide manpower requirements.
All applications received should get careful consideration. Those applications which are of no obvious value to us should be straight away regretted as a matter of courtesy. But those who meet the job specifications of vacancies we normally have or likely to have should be requested to register their profile onto the Company’s website – www.careers.alstom.com. Wherever practicable, the prospective candidates could be called for informal discussion, even if there is no immediate vacancy. However, no assurance of any possible employment should be given at this stage.
Those who personally come to our offices/units exploring employment possibilities should always be received with courtesy. One of the Location HR Executives should receive and interact with such walk-in candidates. Those who are not likely to meet our requirements should be politely told so. For others, they should be requested to register their profile at the Company’s web site. If felt appropriate, company’s standard Application Form may be got filled up from the candidate for the purpose of storage in the data bank.
d) Campus Interviews
The Corporate and Location HR Managers shall maintain professional contacts with leading academic institutions like IIMs, IITs, RECs and other institutions of repute. The Corporate HR Group shall co-ordinate on all-company basis, the induction of all professionals under the Company’s Trainee Schemes or at entry levels, as may be necessitated by the business and the manpower requirement plans.
e) Referred Candidates
The candidates referred by valued and important customers or officials or leaders of Industry and other VIPs must be seen by Corporate HR or the Location HR Managers, as the case may be, and the normal
courtesies should be extended. However, their applications against any vacancy should be considered strictly on merit.
f) Placement Agencies
The services of Placement agencies would be used selectively where no suitable candidate could be located from other sources or where the sourcing of the professionals has to be done discreetly (head hunting).
g) Walk in interviews
At times, where there is an urgency to fill the vacancy (like that of Chartered Accountants, Engineers with 1 to 3 years of experience etc.) and where the responses are likely to be largely from local areas, , Walk-in-Interviews could be held for reducing the cycle time for recruitment. However, this should be resorted to only in exceptional circumstances.
h) Employment Exchange
All legal obligations of the Company under the Employment Exchanges (Compulsory Notification of Vacancy) Act should be complied with. However, it is not mandatory to recruit from the candidates referred to by the Employment Exchanges. Those who meet our requirements should be considered alongwith other candidates.
Returns prescribed under the Act and the Rules framed thereunder should be submitted in time by the concerned Location HR Manager.
i) Sourcing through Print-Media
Sourcing through print media would be resorted to only when we could not locate suitable candidates through other sources or where a national search is advisable in view of the criticality of positions to be filled in. As placing advertisements in the print media are expensive, the justifications for resorting to the same may be examined critically by the Corporate HR.
All advertisements should be fully conforming with the ALSTOM Corporate Standards available on the company intranet site.
The advertisements should clearly indicate the job title, location, the candidate profile - age group, essential/desirable academic and professional qualifications, and the period and nature of experience.
The draft of the advertisement material should be prepared by the Indenting Department Manager, and approved by the Segment Director/Functional Head. The Location HR Manager/Corporate HR would assist the Department in drafting the advertisement.
All advertisements would require prior clearance of the Corporate HR and would be released through the Communications Group. The selection of media would depend on the target group. The advertisement material should be crafted thoughtfully to ensure maximum economy of space consistent with functional simplicity and optimum impact on the target group.
To ensure a quick implementation regarding release of personnel advertisement, the following procedure should be strictly and uniformly followed:
a) Advertisement should be sent only for the approved positions.b) The draft advertisement should be sent to the Corporate HR Group.c) After considering other possibilities, the advertisement will be sent
in a standardised format to the Communications Group with the names of the newspapers and the preferred dates of publication.
d) The Communications Group will release this advertisement in line with the group standards and ensure that the dates are strictly adhered to.
Company’s Employment Application Form
Regardless of the sources, and the position to be filled-in, all candidates whom we are considering for interview should fill in the company’s Application form. Information provided by the candidate in the form is the basis of selection, if an offer is made. If any of the particulars mentioned in the Application Form turns out to be false or inaccurate or there is evidence that any relevant information has been deliberately suppressed, the employment could be terminated without any notice.
Selection Interview
Interview Panel
Preliminary interview for the recruitment of personnel will be conducted by a selection panel consisting of:
a) The requisitioning Department Managerb) Department Head c) A designated Senior Manager of another department/Segment conversant with the job
involved,and, d) Location HR.
In case of recruitment to senior level positions, the Segment/Executive Director shall chair the interview panel alongwith others as required.For certain specialised recruitment, it may be necessary to retain the services of recruitment consultants for reducing the cycle time and ensuring that there is overall consistency. In such cases, the short listed candidates must be interviewed finally by the user Segment/Executive Director along with HR.
Shortlisted candidate/candidates for recruitment in senior positions in the Company will be seen by the Corporate HR Group and the Managing Director prior to any offer of employment being made. In case of Senior level recruitments, it may also be necessary for the shortlisted candidate/candidates to be interviewed by the Segment Managing Director/the Segment HR Director.
Interview Schedule
Interview Schedule should be fixed in such a manner that the candidates called for the interview get sufficient enough time to arrange leave and make travel arrangements. Ordinarily, a lead time of atleast 10 days should be given.
Interview letters should be in the prescribed format.
The Security and the Reception should be informed of the interview and the names of the candidates on the day previous to the date of interview so that they could anticipate the candidates, and extend the required courtesy.
Where a cost analysis of holding interviews at various locations by multiple panels proves to be more economical and time saving, the Corporate HR Group will co-ordinate such nation wide recruitment, wherever necessary, following the principles of formation of the Interview Panel members as mentioned earlier. In such cases, Location HR Managers will form a part of the Interviewing Team.
Pre-Interview Formalities
Before the interview commences, the HR Department should verify the originals of the Certificates/testimonials, including the most recent salary slip. Arrangements for the reimbursement of the travel expenses of the outstation candidates should ideally be completed before the beginning of the interview.Performance/Psychological Tests
Wherever paper and pencil tests, such as IQ, Aptitude, Interest Tests are prescribed, they should be administered well before the panel interview starts. The Panel should have the test results with them.
Interview Process
Photocopies of the filled in Company Employment Application Form/CV, or a brief write up giving the particulars of the candidates should be given to each member of the Interview Panel. It is mandatory that before the interview begins the Panel members should formally meet, go through the Company Employment Application Form/CVs, and evolve a strategy for conducting the interview.
Interview assessment and selection recommendations should be on the basis of discussion and consensus among the Panel members, and should be recorded in the prescribed format
Fixation of Salary for the selected candidate
Normally, while the market forces shall govern the salary fixation of candidates recruited from external sources, the salary of the selected candidates will be negotiated by the HR Manager on the basis of the following guidelines:
a) The position and the position class at which the candidate is being recruited.
b) On peer group comparison, the salary offered to the selected candidate should not ordinarily exceed what is being paid to others in the company with same or similar career profile (academic background, institutions and batch, experience both with the company and earlier) and responsibilities handled.
b) In case the candidate is being offered fixed tenure contract employment with the company, the gross compensation package offered may be higher than those in regular employment with the company.
c) Fixation of the compensation package for Senior Management positions needs to be cleared by Corporate HR and the Managing Director.
Medical examination
Ordinarily, the selected candidate should be found suitable in terms of the prescribed Medical Standards. Where this is not possible for want of time, the candidate should be clearly told that the employment offer is contingent on his being found medically suitable. Medical examination can be organised by the company's Medical Officer/authorised Hospital. The cost of such Medical Examinations will be reimbursed by the Company.
Reference checks
Reference checks of all personnel recruited should be done from the last employer, and also from atleast two of the references mentioned. Where the incumbent has worked for less than a year in the employment immediately previous to his joining ALSTOM Power the reference should also be sent to the second last employer. In case of Senior Management positions, informal reference check on telephone must also be done after obtaining the consent of the candidate by a Senior Manager. No such reference should be made until the candidate has accepted the offer of employment and agreed to such references being made.Appointment
Time period for recruitment
Recruitment of staff in the normal course is likely to take three months from the date of receipt of the personnel requisition and the date of issuance of the offer of employment.
Where an internal candidate has been identified and selected for a particular position, the lead time would be dependant upon the agreement arrived at between the concerned Segments or Departments.
Employment Offer
No person would be engaged in work unless he/she has received an employment offer in writing, and has accepted the same in writing prior to the date from which the employment becomes effective.
The employment offer should be in the standardised format in respect of offers to be issued for management positions and duly signed by a competent authority. The employment offer should be accompanied by the general terms and conditions of service
The employment offer, in duplicate, should be prepared by the Location or the Corporate HR and released after obtaining the signature of the competent authority.
The selected candidate to whom an employment offer has been made should sign the duplicate copy of the offer in token of his acceptance of the terms of appointment.
Once the candidate has accepted the offer in writing, and indicated the date of joining, the requisitioning Manager should be informed so that his initial induction programme and other administrative arrangements can be made well in advance. Security and the reception should be informed atleast two days prior
to the date of joining so that the new employee could be welcomed with courtesy, and without any procedural problems.
Joining Formalities
The selected candidate should complete the prescribed joining formalities on the date of his/her joining. He/she should produce a relieving certificate from the former employer. The Location HR Department should verify the following and record in writing having done so:
The certificates/testimonials in original The most recent/latest salary certificate Relieving letter from the former employer Pre-employment Medical examination report, duly certified All other information as per the application form i.e. age, qualifications, experience etc.
The employee will fill in a joining report given at Appendix 3.
In addition, the candidate should be asked to complete various forms pertaining to Provident Fund, Gratuity, Mediclaim etc., a checklist of which will be available with the Location HR.
Notification of all new appointments
Whenever any employee joins the Company, his/her appointment should be notified in the Company. A recommended format is given at Appendix - 4. The notice should be signed by the Segment/Executive Director/Location Head/Location HR Manager.
Post Selection Formalities
The Location HR Department should ensure that all prescribed Post Selection Formalities are followed, so that the new employee joins without any procedural difficulties and a positive image of the Company is conveyed to him/her.
6.0 INTERNATIONL OPERATIONS
6.1 GLOBAL BUSINESS ACTIVITIES:
Improving conditions for millions of peopleworld wide is the mission ALSTOM has set itself. With this challenge in mind, the company is developing energy & transport infrastructure for tomorrow, drawing from its wealth of technological expertise.
The electrical energy industry requires new & innovative solutions to manage increasingly complex networks & generate cleaner, more flexible & more cost effective energy. ALSTOM is developing services that meet these new needs.
The huge growth of cities, coupled with rising needs for mobility are behind new market demands for improved transport solutions.ALSTOM has already contributed extensively to the renewal of transport systems & prides itself on understanding& anticipating cities & passenger expectations; accessibility, comfort, speed & safety.
GLOBAL SPECIALIST IN ENERGY & TRANSPORT INFRASTRUCTURE
ALSTOM is a global specialist in energy & transport infrastructure. The company serves the energy market through its activities in the field of power generation, power transmission & distribution, power conversion & electrical contracting & the transport market through it’s activities in rail & marine.
ALSTOM offer it’s customers a complete range of innovative componenets, systems & service convering design & manufacture as well as commissioning & long term maintenance & has unique expertise in systems integration, management of turnkey projects & application of advancved technologies.
A GLOBAL COMPANY
Following the full integration of the power generation activities, ALSTOM today has annual sales in excexx of $22 billion & employes more than than 1,40,000 people in over 70 countries.
The company is listed on the Paris, London & New York stock exchanges.
POWER – THE GLOBAL FULL SERVICE PROVIDER
To strengthen it’s position as a leading player in the power generation market, ALSTOM required in May 2000 ABB’s 50% share in their recently formed joint company, now renamed ALSTOM Power, a new ALSTOM sector. Having supplied 20% of the world’s total installed power generation capacity, ALSTOM is one of the world’s leading suppliers of turnkey power plents, all types of turbines ( gas, steam, hydro ), generators, boilers, electrical control systems, environmental protection systems as well as a complete range of services, including plant modernisation & long term operation & maintenance, project development & financing.
As the full service provider in power generation, ALSTOM offers an extensive range of competitive products & services which also set leading standards in environmental impact. Through increased R&D investment in new & existing product development, ALSYOM contineus to provide customers with the innovative solutions they need to remain competitive.
6.2 IT APPLICATIONS – INTERNATIONAL BUSINESS:
ALSTOM uses two kind of IT applications. One is known as MINT (Marketing Intelligence Network). It is been upgraded in France every day. It is a network in all ALSTOM throughout the world. It basically gives the marketing information happening throughout the world. Another applicationwhat they use is OTMS (Opprtunity Track Management System). It is a general application which is been used in all the departments. It is mainly project concerning application. It is been upgraded by those persons who are been given the responsibility to manage one project- the person who is the proect leader.
6.3 RECRUITMENT POLICIES:
No recruitment will be made without a formal approval, as in Section 3.1, and without following the prescribed recruitment procedures.
Whenever a vacancy occurs, the first attempt should be to examine whether the work load could be shared amongst others by enriching their work content, or by other alternatives like automation or system restructuring or by upgrading the skills of some existing personnel.
All selections would be made through duly constituted Interview Panels. No recruitment shall be made which widely deviates from the approved job specifications. Temptations to induct over qualified persons should be resisted unless there are clear career possibilities for such professionals within or outside the Segment/Functional Area.
Recruitment expenses have to be budgeted by the respective Segments/Functional Groups based on additional manpower projections for the year in question.
7.0 RELEVANT INFORMATION
7.1 PLACEMENT HISTORY:
What other companiy offers diversity of cultures that you will find in ALSTOM. From the past few years till today, in more than 70 countries, they provide global managers & experts a truly international environment which meets their expectations for information sharing across the borders.
To develop manager’s ability to work in an enviroinment which increasingly crosses geographical & international boundares, ALSTOM routinely encourages short & long term placement in other countries. It also provides opportunity to travel, experience different cultures & working environments & learn new languages.
To facilitate the daily work, ALSTOM makes extensive use of information technology & brings its people virtually closer by improving communications, networking & by simple sharing the best ideas.
7.2 CAREER OPORTUNITIES:
ALSTOM firmly believes that if they are able to satisfy your aspirations, they build the best gaurantee for satisfying thair customer needs. In order to support this philosophy, they have implimented professional procedures that gaurantee easier access to many opportunities offered by the company:
Individual Appraisal
The individual appraisal is used to carefully review your situation. It will occur atleast once a year, between you & your manager. In addition to accessing your performance in your current mission, this interview is an opportunity for a frank & in-depth discussion about possible career developments for you & the broadening of your responsibilities or functional or geographic mobility. A plan is then drawn up to pave the way for these developments under the best possible conditions.
People Review
Te people review carried out during the meeting of management teams from various operational entities, enables manager to dovetail any career developments wishes expressed by the employees with the company’s future needs.
7.3 ALUMNI WORKING:
NA
7.4 PLACEMENT HINT
Basically the company is meant for the engineers. For non-engineers there is no opportunity to work over here.
8. CURRENT NEWS
8.1 IN THE LIBRARY
DELHI METRO
Leading rail companies feel that the biggest market for investment in the domestic rail sector will be in metro projects.
The companies, including Siemens, Bombardier and Alstom, have already got involved with at least one project in the metros within the past year. While Siemens has bagged a Rs 25-crore project to upgrade the signalling system under the Mumbai Rail Vikas Corporation in January, Bombardier has emerged as the sole contender for rolling stock upgradation for the same project. Alstom is already involved in the Delhi Metro project for some time.
While the Railways are upbeat about the Rs 17,000-crore fund that will be made available during 2002-07 to upgrade safety in railways, along with the recently sanctioned Rs 8,000-crore project for Golden Quadrilateral and Rs 3,000 crore for the mega bridges project, the companies feel that it will be the metro projects that will be in the limelight in the next few years.
Besides Delhi, the Railways are upgrading the network in Mumbai and Chennai, along with further expansion in Kolkata. V B Parulekar, executive vice-president of Siemens Transportation, said the company had done a business of over Rs 80 crore with the Railways in the previous year, and was hopeful of a good growth in the current year. He said any signalling improvement in dense traffic sections, like Mumbai, would allow many more trains to run in every section, thus sparing the need for additional tracks.
Speaking in the same vein, C S Bansal, sector managing director of Alstom Transport, said urban transport should not be thought of entirely based on rails. However, he agreed that it would be the chief agent for decongesting bottlenecks in the metros.
He said Alstom was hopeful that the track safety devices currently being used in the European railways would be adopted by the Railways here also. Both Parulekar and Bansal felt that one of the prime reasons for faster offtake in metro railways was the lean organisational structure, compared to the lead time for other projects.
Bombardier Transportation has also made a pitch for the Railways to shift to stainless steel coaches instead of the mild steel coaches that are currently used. Elan Gartner, vice-president, Bombardier Transportation said stainless steel
coaches can substantially reduce the long-term costs for the Railways on their maintenance.
The average cost of such coaches are about four times the cost of coaches built by the Railways. He said in the corrosive environment in which the coaches would operate, such a switchover would be beneficial and would also handle the pressure of a collision better.
DALAL STREET SPIKES
Shares of Hindustan Motors were up 2.15 per cent today on reports that the company had decided to divest its entire stake in Hindustan Powerplus, its joint venture with Caterpillar Commercial SA of Belgium.
ALSTOM, JAIPRAKASH IN 50 m EURO DEAL
Alstom has signed a 50 million euro (about Rs 250 crore) contract with Jaiprakash Power Venture Ltd (JPVL) for supply of hydro-generating plant equipment for the 400 mega watt Vishnuprayag Hydroelectric project in Uttaranchal.
ALSTOM POWER TO FOCUS ON SMALLER PROJECTS
Alstom Power India, an energy infrastructure major which supplies critical equipment for power plants, has revised its business strategy to focus on smaller projects due to slack in large projects.
8.2 OTHER SOURCESAdditional Shares of ALSTOM Projects India Ltd listed on BSE
The Bombay Stock Exchange (BSE) has listed the new equity shares of ALSTOM Projects India Limited issued to shareholders of erstwhile ALSTOM Transport Ltd., ALSTOM Systems Ltd. and ALSTOM Power Boilers Ltd. pursuant to their amalgamation with ALSTOM Power India Ltd. and has permitted trading on the Exchange with effect from Monday May 26, 2003.
These 2,56,05,748 shares rank pari passu with the existing equity shares of the company.
The Scheme of Amalgamation was sanctioned by the High Court of Bombay on 31st October, 2002. The scheme became effective on 1st November, 2002 with an appointed date of 31st March, 2001. The shares were allotted and issued on 1st November, 2002.
The merger was approved by Bombay High Court on October 31, 2002 while denying the objections raised by two opponents to the Scheme.
Appeals filed by the opponents were also rejected with costs by the Division Bench of the Bombay High Court on March 21, 2003. A Special Leave Petition filed by one opponent was dismissed by the Supreme Court on May 5, 2003.
ALSTOM is a long-term player in India in the energy and transport sectors. With 12 manufacturing units, 30 business offices spread all over the country and total employee strength of 6000, it mainly operates in three major areas i.e. Power, Transmission & Distribution and Transport. Its activities range from erecting power plants to supplying critical electrical equipment including boilers, turbines and pollution control equipment. ALSTOM Transport is recognised as a high technology provider of signaling solutions. ALSTOM has annual sales in excess of 23 billion euros and employs 112,000 people in over 70 countries. The Company is listed on the Paris, London and New York stock exchanges.
ALSTOM Wins major order in Northern INDIA
ALSTOM has signed a 50 million Euro (about Rs. 250 crore) contract with JAIPRAKASH POWER VENTURES LTD. (JPVL), India for the supply of major Hydro-Generating Plant Equipment for the 400 MW (4 x 100 MW) Vishnuprayag Hydroelectric Project located on the Alaknanda river in Uttaranchal.
Mr. Francois Loos, the visiting French Minister for Trade & Commerce and Mr. Pierre Bilger, Chairman of ALSTOM attended the signing ceremony together with Dr. Krishna Pillai, ALSTOM Country President in India, senior officials of ALSTOM, JPVL and the French Embassy.
The contract was signed by Mr. Suresh Kumar, Managing Director, Jaiprakash Power Ventures Ltd. (JPVL) and Mr. Andre Botto, Business Development Director, Hydro Power Segment, ALSTOM France together with Mr. E J Ferdinand, Executive Director, Hydro Segment, India at an official function in the capital.
The turnkey contract covers the supply and supervision of erection of turbines, governing systems, spherical valves, butterfly valves, generators, static excitation system, bus ducts, computerized power plant control and monitoring systems and 400 kV GIS and cables.
This prestigious project is being built by JPVL on Build Own Operate (BOO) basis and is one of the few large IPPs being set up in India in the hydro sector. The civil works for the project are already in an advanced stage.
The project will be managed by ALSTOM’s Hydro Power Segment in France, equipment and components being supplied from the Company’s manufacturing facilities in Grenoble and Belfort, France, and also from India. The Project is scheduled for commissioning in December 2006.
Vishnuprayag Hydro Power Project is a run off the river project with an estimated cost of Rs 1900 Crore (approximately Euro 380 million). It has all the statutory
approvals in place. The escrow agreement as well as the financing agreements have already been signed by the promoter. The project, designed to produce over two billion units of power, is expected to mitigate the power shortage in North India when commissioned.
ALSTOM is the global specialist in energy and transport infrastructure. ALSTOM serves the energy market through its activities in power generation and power transmission and distribution, and transport through its activities in rail and marine.
In fiscal year 2001/02, ALSTOM had annual sales in excess of €23 billion. ALSTOM employs 112,000 people in over 70 countries.
ALSTOM is listed on the Paris, London and New York stock exchanges.
ANNEXURE – IIA BRIEF REPORT ON INDUSTRIAL VISIT
INDUSTRIAL VISIT BY THE COLLEGE
ATLAS CYCLES
THE CREDIT Rating Information Services of India (Crisil) has assigned A plus (single A plus) rating to the Rs. 16.50 crore non-convertible debenture (NCD) issue of Atlas Cycle (Haryana). Atlas, formely Atlas Cycle Industries, has been placed under rating watch with developing implications.
The rating watch is based on Crisil's opinion that ongoing developments in the company regarding ownership and management control between various members of the promoter family and the possible re-organisation of the operations of Atlas into three subsidiaries could have a material impact on the credit risk profile of the outstanding debt instrument.
Atlas had initiated a restructuring exercise in 1999-2000 whereby three new wholly owned subsidiaries were created, each being named after the respective cycle manufacturing locations, namely, Atlas Cycles (Sonepat), Atlas Cycles (Sahibabad) and Atlas Cycles (Malanpur). Although the originally stated intention of setting up these subsidiaries was to treat them as profit centres, current developments indicate the likelihood of a distribution of assets and liabilities into these companies.
Crisil's rating is based on the uncertainty associated with the ownership of the rated debt as well as the credit profile of the new holder of the said instrument. The rating action also takes into account the company's satisfactory operating performance for 2000-01.
Crisil is in dialogue with the management of Atlas to review the implications of the various options being contemplated by the management.
BIBLIOGRAPHY
BIBLIOGRAPHY
The datas & the facts & figures which is been mentioned in the report are been
collected from various different sources.
BOOKS & MAGAZINES
THE SPARK (QUARTERLY MAGAZINE OF ALSTOM)
BROUCHERS OF ALSTOM
ANNUAL REPORT OF ALSTOM
ANNUAL REPORT OF N.H.P.C
WEB SITES
www.nhpcindia.com
www.powermin.nic.in
www.cea.nic.in
www.alstom.co.in
DIRECT COMMUNICATION
SENIOR EXECUTIVES OF N.H.P.C
STAFFS OF ALSTOM
EMPLOYEES IN MINISTRY OF POWER
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