Chapter: 4

Role of NTPC Ltd. in country’s power sector and its activityprofile.

4.1 Origin of NTPC Ltd.

In 1976 the amended Electricity Supply Act (1948) provided opportunity for

the establishment of a corporation under the authority of the Government of India.

National Thermal Power Corporation Ltd., India’s power giant, was established in

November 1975 to play a major role in the country’s power sector. This company

had been authorized to set up regional thermal power stations and to take charge of

bulk transmissions from these units to the State power system. At the end of the

ninth five-year plan period, the installed capacity of the company was 19935 MW.

At the end of September 2002, the company has managed to add two power plants

with an installed capacity of 500MW and 314MW respectively. Operating 16 coal

based plants (Three under the control of Joint Venture Company) and 7-gas/ liquid

fuel based plant the company has turned into a 20,749 MW Company within the

year 2002. The corporation has adopted multi-pronged growth strategy to become

30,000MW capacity by 2007 and 40,000MW capacity by 2012. NTPC with its

share of about 19% of India’s total capacity generates 26% of the country’s power

at the end of the study period. NTPC plants have consistently operated at

efficiencies that are much higher than those of other generators in the Indian power

sector. In fact, NTPC provides the benchmark for the Indian power sector. In a

study conducted by DATAMONITOR, UK, NTPC ranked as the sixth largest

thermal utility in terms of generation of electricity and the second most efficient in

capacity utilization among the thermal world during the year 1998.

NTPC has been a socially committed organization since inception. NTPC’s

mission includes “Making available reliable and quality power in increasingly

large quantities at appropriate tariffs, and ensure timely realization of revenues and

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to be responsible corporate citizen with thrust on environment protection,

rehabilitation and ash utilization.” The corporate vision of the company is “to be

one of the world’s largest and best power utilities, powering India’s growth.”

4.2 Organizational Aspect

It was set up with an administrative structure composed of board of

directors, with a full- time chairman-cum-managing director. The board included a

director in charge of finance, chief vigilance officer and five part-time directors.

They represent the Department of Power, the C.E.A., Planning Commission and

Department of Heavy Industries. Besides this, the Corporation is divided into

different divisions responsible for corporate planning, contract & material

management, finance, human resource, project management, technical services,

hydro, consultancy & joint venture corporate communication and commercial. The

organization chart of NTPC Ltd. is shown below.

84

As per organization chart there are sixteen executive directors in the

administrative structure. Out of the sixteen directors five directors are in charge of

five regions.

The remaining executive directors are in charge of various divisions mentioned

earlier. With this vast administrative structure, the NTPC is supposed to plan,

promote and organize efficiently the thermal power sector. This includes planning,

investigation of new sites, and preparation of feasibility and project reports,

construction, operation, generation, maintenance, transmission and distribution of

power generated from all thermal units. Besides this, it also undertakes research

and development in the area. Region-wise distribution of power projects of

National Thermal Power Projects in India. NTPC Ltd. has divided the country into

five regions for the purpose of administrative control. The regions are Northern

Region, National Capital Region, Western Region, Eastern Region and Southern

Region.

4.3 Power projects of the company in various region of the country

4.3.1 Power projects of the company in the northern and national capital region

It is evident from the Table 4.1& 4.2 that National Thermal Power Corporation had

made bulk of its investment in Uttar Pradesh. There are seven power projects under

the behest of National Thermal Power Corporation in Uttar Pradesh with a total

installed capacity of 6589 Mega Watt. Still Two more units of 500 MW are to be

commissioned at Rihand project. The total investment already made in these

projects were RslO, 223.51 crore. Out of the seven projects five are coal-based

projects and two are gas-based projects. Government of India has supported NTPC85

to have external commercial borrowings to finance the projects. It is also seen from

Table 4.2 that there are two gas-based power projects of 413MW & 430 MW in

Rajasthan and Haryana respectively. The beneficiaiy states from the projects in the

northern and national capital region are Uttar Pradesh, Uttaranchal, Jammu &

Kashmir, Himachal Pradesh, Chandigarh, Rajasthan, Haryana, Punjab, Delhi, and

Railways. NTPC has utilised assistance received from various foreign financial

institutions like IDA, KFW, ADB, World Bank for the projects in northern &

national capital region. Plant Profiles of the projects in northern and national

capital region are given below.

i) Singrauli

Singrauli, the first super thermal power station in the country, was set up in

two stages. Stage I was comprised of five units of 200 MW each, commissioned

between February 1982 and February 1984. Stage II had two units of 500MW

each, commissioned in December 1986 and November 1987 respectively. The

approved investment for the project was Rs 1190.69 crore. The main plant

equipment were supplied by BHEL. The fuel for the plant comes from the Jayant

and Bina coalmines. Currently, Uttar Pradesh gets 850 MW, Rajasthan 300

MW, Delhi 150 MW, Punjab 200MW and Haryana 200MW, about 300 MW

remained unallocated. The Plant had generated 16,455 million units during

1999-2000 at an average PLF of 93.6 percentage. In the last year of the study

period the plant generated 15,474 million units.

ii) Rihand

An outcome of Indo-British cooperation, Rihand was set up with an

approved investment of about Rs 23.87 billion. The plant has two units of 500MW,

each which were commissioned in March 1988 and July 1999 respectively. The

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main plant equipment were supplied by Alsthom. The coal used in the plant is

sourced from the Almori mines. The Plant had generated 7,607 million units

during 1999-2000 at an average PLF level of 86.6 per cent. In 2001-02 the plant

generated 7674 million units. It supplies power to the northern region. Currently,

Uttar Pradesh gets 365MW, Rajasthan 95 Mw, Delhi 100 MW, Punjab llOMW,

Haryana 65 MW, Himachal Pradesh 35 MW and Jammu & Kashmir 70 MW.

About 150 MW remains unallocated. NTPC is plaiming to add another 1,000 MW

in the tenth plan,

iii) UnchaharThe Unchahar project was taken over from the Uttar Pradesh State

Electricity Board in February 1992. The project was taken over as a one-time

settlement of large outstanding dues of UPSEB towards NTPC. At that time, it had

two operating units of 210 MW each. In the year 2001-02, NTPC added two more

units of 210 MW each. The main plant equipment were supplied by BHEL. The

coal used in the plant is sourced from the North Karanpura Coalfields. The plant

had generated 3,625 million units during 1999-2000 at an average PLF of 85.4 per

cent. In 2001-02 the plant generated 6561 million units. NTPC’s Unchahar project

in Uttar Pradesh was the topper in the list of best performing plant published by

Ministry of Power, achieving a PLF level of over 101 per cent during the period of

April 1999-April 2000. The beneficiary states from this project are Uttar Pradesh

430 MW, Rajasthan 58MW, Delhi 71 MW, Punjab 96 MW, Haiyana 34 MW,

Himachal Pradesh 19 MW, Jammu & Kashmir 44 MW and Chandigarh 5 MW

while about 83 MW remains unallocated. NTPC is planning to add another 660

MW of capacity during the eleventh plan.

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iv) TandaThe plant was taken over by NTPC on 14.01.2000 jfrom Uttar Pradesh State

Electricity Board at the cost of Rs 1,000 crore. The project has four units of 110

MW each. The plant was capable to generate only 121 million units during the

period 1999-2000. The plant recorded the second lowest PLF of 13.6 per cent

during the period April 1999- April 2000.However the situation had improved

considerably within two years after take over. In 2001-02 the plant produced 2101

million units.

v) Dadri (Coal)

The Dadri Plant was set up primarily to serve the power needs of Delhi. The

plant has four units of 210 MW each, which were commissioned between

December 1991 and March 1994. The main plant equipment were supplied by

BHEL. The coal used in the plant has been supplied by the coalfields in North

Karanpura. The plant generated 7,092 million units during 1999-2000 at an

average PLF of 96.2 per cent. This level was the highest among all NTPC plants

during the fiscal year. Dadri supplies 756 MW to Delhi and 84 MW to Uttar

Pradesh. NTPC is planning to add further 660 MW of capacity during the eleventh

plan.

vi) Dadri (Gas)

NTPC’s largest gas-based power project is the Dadri Plant. The project

comprises of four gas turbines of 131MW each, which were commissioned

between February and October 1992. The combined cycle operations began when

the two steam turbines of 146.5 MW each were commissioned in February and

March 1994 respectively. The main plant were supplied by Siemens. KfW of

Germany had extended a loan of DM 484.9 million to cover foreign exchange

8 8

requirement and local cost of the project. The gas for the plant is supplied via the

HBJ pipeline. The plant had generated 5,116 million units during 1999-2000.In

2001-02 the plant generated 5730 million units attaining a higher PLF level.

Currently, Uttar Pradesh gets 270 MW, Rajasthan 75 MW, Delhi 90 MW, Punjab

130 MW, Haiyana 40 MW, Himachal Pradesh 25 MW, Jammu & Kashmir 55 MW

and Chandigarh 5 MW, about 127 MW remains unallocated. The station was

awarded prestigious Indo-German Green Tech Environment Excellence Award

1999-2000 by the Green Tech Foundation and the Centre for the International

Transfer of Technologies,

vii) Anta (Gas)

Anta, the first gas-based power plant of NTPC, was also a two-stage project.

Stage I comprised of three gas turbines of 88 MW each and one steam turbine of

149 MW, the units were commissioned between January 1989 and March 1990.

Stage II, with a capacity of 650 MW, had been approved by the centre and was

likely to be completed during the tenth plan. The main plant equipment were

supplied by ABB. International Bank for Reconstruction and Development, the

main component of World Bank had extended Financial support for the project

under a new “time slice funding” concept. Under this approach, Bank’s assistance

was not on project to project basis as was done earlier, but was envisaged to cover

a portion of NTPC’s investment programme over a time-slice period (about 4 to 5

years). The gas used in the plant was supplied from the HBJ pipeline. The plant

generated 3,174 million units during 1999-2000. Currently, Uttar Pradesh gets 106

MW, Rajasthan 82 MW, Delhi 43 MW, Punjab 48 MW, Haiyana 24 MW,

Himachal Pradesh 14 MW, Jammu & Kashmir 29 MW and Chandigarh 5 MW and

about 62 Mw remains unallocated.

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viii) Auraiya (Gas)

Though Auraiya was commissioned about three months after Anta, it had actually

been planned earlier. This project too was a two-stage project. Stage I comprised of

four gas turbines of 110 MW each and two steam turbines of 106 MW each. These

units were commissioned between March 1989 and June 1990. Stage II, with a

capacity of capacity of 650 MW had been approved by the centre and is likely to

be completed during the tenth plan. The main plant equipment for stage I were

supplied by Mitsubishi. The gas used in the plant was supplied via the HBJ

pipeline from South Basin Gas Field. The plant generated 5,078 million units

during 1999-2000. Currently, Uttar Pradesh gets 234 MW, Rajasthan 60 MW,

Delhi 71 MW, Punjab 81 MW, Haryana 38 MW, Himachal Pradesh 22 MW,

Jammu & Kashmir 43 MW and Chandigarh 5 MW and about 98 MW remains

unallocated. The approved total investment of the project was Rs 678.77 crore.

Like the project in Anta, International Bank for Reconstruction and Development

put forward financial assistance for the project also.

ix) Faridabad

The Faridabad project is NTPC’s first venture in Haryana. It operates on gas

and uses naptha as an alternate fiiel. With an approved investment of about Rs

11.64 billion, the project had started open cycle operations. The two gas turbines of

143 Mw each were commissioned in June 1999 and October 1999 respectively.

The steam turbine of 144 MW was commissioned during July 2000, much ahead of

scheduled time. The main plant equipment were supplied by BHEL. Gas for the

plant was supplied via the HBJ pipeline. The plant generated 2861 millions units

during 2001-02. the entire power produced is supplied to Haryana. In the year

2000-01, the station had acquired ISO-9002 certification.

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In Eastern Region, NTPC has four coal-based power projects. The location

of the plants and their key features are illustrated in Table 4.3. As per location,

West Bengal has got one power station, Bihar one and Orissa two. The brief

descriptions of the four plants in Eastern Region are appended as under;

i) Farakka (Coal)

The biggest power station in the eastern Region, Farakka was set up in three

stages. The total installed capacity has been 1600 MW till date. Stage I comprised

of three units of 200 MW while Stage II had two units of 500 MW each. These

were commissioned between January 1986 and February 1994 and were under the

commercial operation since April 1995. BHEL and Ansaldo supplied the main

Plant equipment. The coal was supplied from Rajmahal Coalfields. The plant had

generated 6,792 million units during 1999-2000 at an average PLF of 48.5 per

cent. In 2001-02 the situation had improved considerably and the plant generated

8418 million units. It supplies power in the eastern Region. Currently, West Bengal

gets 530 MW, Bihar 375 MW, Orissa 235 MW, DVC 130 MW and Sikkim 25

MW, about 305 MW remains unallocated due to shortage of demand.

ii) KahalgaonThe Kahalgaon power project has four units of 210 MW, which were

commissioned in March 1992 and March 1996 respectively. The main plant

equipment were supplied by Russian companies. Coal for the plant was sourced

from the Rajmahal Coalfields. The plant generated 4,281 million units during

1999-2000 at an average PLF of 58.2 per cent. In 2001-02 the production has

4.3.2 Power projects of the company in the Eastern Region

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slightly increased to 4514 million units. It supplies power in the eastern region.

Currently, West Bengal gets 180 MW, Bihar 285 MW, Orissa 135 MW, DVC 67

MW, and Sikkim 15 MW while about 158 MW remains unallocated. NTPC is

planning to add another 1,320 MW capacity, of which 660 MW will be added in

the tenth plan and the remaining in the eleventh plan. The company had received

financial assistance from foreign financial institute like IBRD, IDA, KFW and

Italy govt, for the project.

iii) Talcher Kaniha (Coal)Considered technologically the most advanced among all NTPC power

plants, Talcher Kaniha has an approved capacity of 3,000 Mw. In Stage I, two

units of 500 MW each were commissioned between February 1995 and March

1996. Work is going on for the second stage, which will have four units of 500

MW each. The project has a total approved investment of about Rs 92.41 billion.

The plant equipment for Stage I were supplied by Stein. The coal used in the plant

is sourced from the nearly Talcher coalfields. The plant had generated 5,320

million units during 1999-2000 at an average PLF of 57.8 per cent. In 2001-02,

PLF level increased considerably and the plant produced 6236 million units.

iv) Talcher Thermal (Coal)

The Talcher project was taken over by NTPC fi*om the erstwhile Orissa State

Electricity Board. The total investment was about Rs 3.56 billion. The plant, which

was set up during the late 1960s, was acquired by NTPC in June 1995. It comprises

four units of 60 MW each and two units of 110 MW each. The main plant

equipment were supplied by GE. The coal used in the plant was supplied by the

Talcher Coalfields. The plant generated 2,323 million units during 1999-2000 at an

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average PLF of 57.5 per cent. The entire power produced has been supplied to

Orissa.

4.3.3 Power projects of the company in the southern region

The power sector of the southern part of the country is comparatively more

efficient than other parts of the country. Yet NTPC has lesser number of plants in

that region than that of other areas. The company owns two plants in Andhra

Pradesh and one in Kerala. Table 4.4 presents the location and the main features of

the plants in the Southern region. Brief description of the plant is given below.

i) Simahardi (Coal)The approved capacity of the project is 1000 MW. The first unit of the

project was synchronized in February 2002 in a record time and this unit started

commercial generation within the year. Second unit of 500 MW had also been

synchronized ahead of time schedule on 25* August 2002. The cost of the project

had been Rs 3650.79 crore. The Project has been implemented with Japanese

Official Development Assistance (ODA) Loan from Japan Bank for International

Co-operation.

ii) Ramagundam (Coal)

It is the first power project of NTPC in the southern part of the country. It

has an approved capacity of 2600 MW, out of which 2100M W has been installed.

The project was set up in two stages. Stage I comprised of three units of 200 MW

each, which were commissioned between November 1983 and December 1984.

Stage II had three units of 500 MW each, which were commissioned between June

93

1988 and October 1989. The main plant equipment were supplied by BHEL and

Ansaldo. Coal is obtained from the South Godavari Coalfields. The plant generated

16,642 million units at an average PLF of about 90.3 per cent. In 2001-02

production of the plant dropped slightly to 15,846 million units. Ramagundam

currently supplies 580 MW to Andhra Pradesh, 345 MW to Karnataka, 470 MW to

Tamil Nadu, 245 MW to Kerala, 100 MW to Goa and 50 MW to Pondichery. Its

unallocated capacity is 310 MW. NTPC planned to add further 500 MW during the

tenth plan. The approved allocation for the project had been Rs 3877.38 crore.

Foreign financial organization like International Bank for Reconstruction and

Development, International Development Association, OPEC had put forward

financial assistance for the project.

iii) Kayamkulam(Gas)Kayamkulam is the only NTPC power project which operates entirely on the

naptha. Until gas is made available, the project will be continuing to operate on

naptha which is currently being supplied by Bharat Petreleum Corporation

Limited. The project, with an approved investment of Rs 13.11 billion, has two gas

turbines of 115 MW each, which were commissioned in December 1998 and

March 1999 respecfively. Another plant of 120 MW was commissioned in

November 1999. The main plant equipment were supplied by BHEL. The plant

had generated 1,247 million units during 1999-2000. In 2001-02 production

improved slightly better figuring to 1,316 million units. The entire power produced

is supplied to Kerala. NTPC plans a massive expansion of 1,950 MW for the

project during the eleventh plan when adequate gas is expected to be available.

NTPC had utilised “Time slice loan” received fi-om the World Bank for the project.

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In Western Region NTPC have four projects only. As there are some private

sector power companies operating in the western part of the country, NTPC had

comparatively lesser amount of investment in this region. Out of the four projects,

there are two gas -based projects in Gujarat, one in Madhya Pradesh, one in

Chattishgarh. There is no Project of NTPC in Maharastra, Karnataka and

Tamilnadu at the end of ninth plan period. Table 4.5 exhibits the key features of

the projects in the Western Region. Brief description of the plants is given below:

i) Kawas (Gas)

Kawas is NTPC’s first project in Gujarat. The first phase of the project was

completed between March 1992 and March 1993. It comprised of four gas turbines

of 106 MW each and two steam turbines of 110.5 MW each. The second phase

would have addition of further capacity of 650 MW and was likely to be completed

during the tenth plan. The main plant equipment were supplied by Alsthom. The

gas consumed in the plant is supplied via the HBJ pipeline from the South Basin

Gas Field. The plant generated 4,777 million units during 1999-2000. It supplies

power to the western region. Currently, Madhya Pradesh gets 137 MW,

Maharashtra 201 MW, Gujarat 230 MW, Goa 35 MW, Dadra & Nagar Haveli 5

MW and Daman & Diu 5 MW. The remaining is unallocated.

(ii) Korba(Coal)

The largest power station in the country at the time of its commissioning,

Korba was also set up in two stages. Stage I had three units of 200 MW each,

4.3.4 Power projects of the company in the western region

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commissioned between November 1983 and March 1984. Stage II comprised of

three units of 500 MW each, commissioned between May 1987 and March 1989.

The main plant equipment were supplied by BHEL. Coal for the plant is sourced

from the Kusmunda bloclc. The plant generated 15,577 million units during 1999-

2000 at an average PLF level of 85.7 per cent. It supplies power to the western

region. Currently, Madhya Pradesh and Maharashtra gets 610 MW each, Gujarat

360 MW and Goa 210 MW. The remaining 310 MW is unallocated. The total

approved outlay for the project was Rs 1625.25 MW. International Development

Association, OPEC countries and KFW, Germany had put forward financial

assistance for the project.

iii) Jhanar-Gandhar (Gas)

Gandhar is NTPC’s second project in the state of Gujarat. Stage I comprised

three gas turbines of 131 MW each, which were commissioned during March-May

1994. The combined cycle operation began in March 1995 with the installation of

a 255 MW steam turbine. The 650 MW Stage II project had been expected to

become operational during the tenth plan. The main plant equipment were supplied

by ABB. The gas for the plant is sourced from the Gandhar Gas Fields. The plant

had generated 2,282 million units during 1999-2000. In the last year of the study

period found the production considerably increased to 3,615 million units.

Currently, Madhya Pradesh gets 116 MW, Maharashtra 185 MW, Gujarat 234

MW, Goa 12 MW, Dadra & Nagar Haveli 2 MWand Daman & Diu 2 MW. The

remaining 97 MW is unallocated. The total approved investment of the project was

Rs 2500 crore. Japan Bank for International Cooperation (JBIC) was one of the

financers o f the project.96

The approved capacity for the project was 2260 MW. Vindyachal has also

been set up in two stages. Stage I was comprised of six units of 210 MW each,

commissioned between October 1987 and February 1991. The installation of two

units of 500 MW each had been completed in February 2000, under stage II. The

main plant equipment were supplied by Russian companies and BHEL. Coal for

the plant is sourced from the Nilgahi mines. The plant had generated 9,895 million

units during 1999-2000 at an average PLF of 88.1 per cent. In 2001-02 production

reached at considerably high level while the plant produced 15,590 million units. It

supplies power in the western region. Currently, Madhya Pradesh gets 658 Mw,

Maharashtra 729 MW, Gujarat 469 MW, Goa 47 MW, Dada & Nagar Haveli 9

MW and Daman & Diu 8 MW. The remainmg 340 MW is unallocated. NTPC

plans to add another 1000 MW during the tenth and eleventh plans. The approved

investment had been Rs 4053,42 crore. The project had received financial

assistance from World Bank and USSR.

Apart from the above projects NTPC manages 705 MW Badarpur Thermal

Power Station at Delhi and Balco Captive power plant of 270 MW. During 1999-

2000 Badarpur and Balco achieved PLF of 81.1% and 85.40% respectively.

NTPC- SAIL Power Company Private Ltd, a Joint Venture company of NTPC and

Steel authority of India (SAIL), with an authorized Capital of Rs 130 crore owns

and operates the captive power plants at Durgapur (120 MW) and Rourkela

(120MW) Steel Plants of SAIL. Bhilai Electric Supply Company Ltd., a company

formed by SAIL, is to own and manage the captive power plant at Bhilai Steel

Plant (74 MW) of SAIL. It became a Joint Venture Company of NTPC and SAIL

during 2001-02. NTPC’s venture in the hydro electric sector had started with the

iv) Vindyachal(Coal)

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take over of Koldam Hydro Electric Power Project (800 MW) from Himachal

Pradesh Electricity Board in May 2000. After receiving clearance of the project

from CEA, it has transferred in favour of NTPC. The project will be commissioned

on river Sultej at an approved investment of Rs 4,527 crore. As such it is evident

that within a span of 26 years, NTPC has emerged as a truly national power giant,

with generating facilities scattered over all the major regions of the country.

4.4 Growth of NTPC during the Eighth and Ninth Five-Year Plan

Periods.

During the eight and ninth year plan periods, NTPC hadadded 8602 MW, which

was about 43.15% of the total capacity of the company. The average rate of

addition had been 860 MW per year. NTPC had contributed 30,5% (5002 MW) of

the national capacity addition in VIII plan. NTPC had set a target of capacity

addition of 6270 MW for the ninth plan period but failed miserably to do so. The

company had managed to add only 3140 MW only including 440 MW of Tanda

Project taken over from UPSEB. In the eighth plan period company had added

maximum capacity of 1721 MW in the year 1992-93 which was approximately

49% of the total capacity added in the country during that period. The company

completed commissioning of one 500 MW unit at Farakka, two units of 210 MW

at NCTPP, DADRI, Two gas turbine units of 131 MW each at Dadri (Gas) project,

three gas turbine units of 106 MW each and two steam turbine units of 110.5 MW

each at Kawas. In the year1993-94, the company added new capacity to Dadri,

Kawas, Gandhar, Farakka, Kahalgaon project totalling to 1475 MW. In 1994-95

NTPC commissioned 500MW at the Talcher project, 210 MW at Kahalgaon

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project and 386 MW at Jhanor Gandhar Gas power Project. Total addition during

the year was 1096 MW. In 1995-96 two units of 210 MW and 500 MW were

commissioned in Kahalgaon and Talcher project respectively. In addition to

capacity addition the company acquired 460 MW Talcher TPS from erstwhile

OSEB. In the last year of the eighth plan period company failed to add any more

capacity. However, the company had succeeded in general for attaining capacity

addition programme as envisaged by the planning commission. In the first year of

the ninth plan period no additional capacity was noticeable. In 1998-99 additional

940 MW was added to the various project of the company. In 1999-2000 company

manage to install 1556 MW with the commissioning of 210 MW at Unchahar

project, 500 MW at Vindhyachal project, 286 MW at Faridabad. In this year

company acquired 440 MW Tanda TPS from UPSEB. In 2000-01 one steam

turbine of 144 MW was installed at Faridabad Project. Again, in the last year of the

ninth plan period company could not manage to install additional capacity. Figure

4.1 points out to the fact that the company has managed to add capacity at a steady

rate. The regression equation of capacity growth has been y=711.64x + 13085 for

the period of ten years where y denotes the capacity and x is the number of year.

So as per trend the projected installed capacity at the end of ninth plan period was

20,201 MW. But the actual achievement was little short against the target. Table

4.6 shows the trend of capacity addition over the ninth and tenth plan period.

4.5 Future Growth Strategy of the company

NTPC has adopted a multi-pronged growth strategy to become 40,000 plus MW

Company by year 2012. The strategy, inter alias, includes capacity addition

through green field projects, expansion of existing stations, joint venture and take

99

over from SEB’s stations. Further, new business opportunities are being

continuously explored through environment scanning and new business plans are

adopted through mid- term corrections. The company is planning to enter new

areas of operation like coal washery, atomic power, power trading and gas supply.

The state-owned generating utility has begun working on setting up of a national

exchange for trading in electricity on the lines of stock and commodities exchange.

NTPC has planned to add another 9370 MW capacity, entailing an investment of

35,000 crore to be flmded in the ratio of 30 per cent equity and 70 per cent debt

during the 10* plan. (Times of India, 20.08.2005) The company has revised its

targeted capacity addition from 11,558 MW to 17,052 MW for the ll" ’ plan and

further wants to add 20,000 MW in the 12* five-year plan. Thus the company

desires to become a 66,000MW company within the year 2017. (Ananda Bazar

Patrika 03.10.2005) NTPC’s expansion projects are listed below:

A. Ongoing projects1. Talcher Stage II (4 x 500 MW) in Orissa 2000 MW

2. Ramagundam Stage III (1 x 500 MW) in Andhra Pradesh 500 MW

3. Rihand Stage II (2x500 MW) in Uttar Pradesh 1000 MW

4. Koldam Hydro Electric Project (4 x 200 MW) in H.P 800 MW

Total 4300 MW

B. CEA cleared new projects1. Sipat Stage I (3 x 660 MW) in Chhattisgarh 1980 MW

2. Barh (3 x 660 MW) in Bihar 1980 MW

3. Kahalgaon Stage II (2 x 660 MW) in Bihar 1320 MW

4. Vindyachal Stage III (2 x 500 MW) in Madhya Pradesh 1000 MW

5. Sipat Stage II (1 x 660 MW) in Chhattisgarh 660 MW

Total 6940 MW

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C. Other Projects1. Feroz Gandhi Unchahar Stage III in Uttar Pradesh 210 MW

2. NCTPP Stage II in Uttar Pradesh 490 MW

3. North Karanpura (3 x 660 MW) in Jharldiand 1980 MW

4. Kawas II in Gujarat 650 MW

5. Jhanor Gandhar II in Gujarat 650 MW

6. Anta II in Rajasthan 650 MW

7. Auraiya II in Uttar Pradesh 650 MW

8. Feasibility report under preparation• Kayamkulam Stage II in Kerala 1950 MW• Cheyyur Stage I in Tamiinadu 1000 MW

Total 8230 MW

From the above list, it appears that the states like West Bengal and Karnataka are

being deprived of getting any berth in the NTPC’s future expansion programme.

4.6 Manpower Profile

NTPC has achieved the highest echelon in India and abroad and has rallied

itself among the best power utilities in the world. NTPC attributes its phenomenal

success to its employees. For realizing NTPC vision, a conducive HR environment

is being created. The HR vision of the company is to enable our people to be a

family of committed world-class professionals making NTPC a learning

organization. A careful manpower planning has resulted in recruiting and retaining

the best techno-managerial workforce. NTPC’s growth in terms of number of

employees over the last five years has been shown in Table 4.7, which

demonstrates that while the number of employees increased marginally, the

1 0 1

number of executives had hiked by 1490. Side by side, it is worth observing that

the number of supervisors and workmen had dropped by 639 and 664 respectively.

4.6.1 Valuation of Human Resource and Man-MW ratio

NTPC has a strong conviction that Human Resources are its most vital

assets. NTPC assesses its Human Resource assets using various accounting

principles embedded in Human Resource Accounting philosophy to treat them at

par with other assets. Lev and Shwartz model of HR accounting has been

employed to assess the value of the human resources in the company. Category

wise details of the same for the year 2001-02 are shown in Table 4.8. The total

value of all categories of employee was Rs 9769.42 crore. The values of

executives, supervisors and workmen were Rs 3657.30 crore, Rs 1106.92 crore and

Rs 4779.15 crore respectively.

NTPC has been taking various initiatives with the objective of maximizing

the Human Capital of the organization for competence and commitment building,

so that it can effectively meet the new challenges of the changing liberalized

economic scenario. Efforts towards knowledge up gradation at various levels have

been harnessed on a continuous basis with renewed emphasis on training. Though

the company has continuously added to its installed capacity, the Man -M W ratio

has been consistently improving. Table 4.9 shows the Man-MW ratio of NTPC

Ltd. during eighth and ninth five year plan periods. It is a major indicator of

manpower utilization in the power generating industries. The overall Man-MW

ratio dropped from 1.43 in the year 1992-93 to 1.06 in tlie year 2001-02. Apart

from that, Table 4.9 exhibits value addition, turnover and generation per employee

from 1992-93 to 2001-02. It is well evidenced from the Table that the company has

improved over four times in respect of value addition and turnover and has doubled102

its generation per employee over a span of ten years. In 1991-92, the value addition

was only Rs 10.54 Lakh per employee. The figure had jumped up to 48.54 lakh in

the last but one year of the study period. In respect of Turnover the figure has

reached from 20.57 Lakh per employee to 48.54 Lakh per employee. Both rising

inflation rate and competence had contributed for this improvement. In terms of

achievement in physical quantity, generation per employee has been doubled from

3.03 million units in 1992-93 to 6.26 million units in 2001-02. It is evident from

the table that the company has utilised its human resources to the best possible

extent. Still there is scope for improvement as per as the utilization of manpower is

concerned. In U.S. only 100 people are engaged for a 500 MW thermal power

plant while the Indian corporate sector employs 500 persons and SEBs employ

2000. (EPW February 12, 2005 p.657) In the year 2001-02 six out of the ten best

power stations of the country in terms of PLF, belonged to NTPC. The company

achieved all its MOU targets with Government of India for the year 2001-02 and

achieved ‘Excellent’ rating for the 15* consecutive year. Five workmen from

Rihand have won Shram Bhusan and four from Farakka had won Shram Shree

Awards for the year 2001 under the prestigious Prime Minister’s Shram Awards

Scheme.

103

References

• NTPC Ltd. (1992-93 to 2001 -02), Annual Reports, New Delhi.

• Power Line, volume 4, No 9, New Delhi, June 2000 pp 20-53.

104

II A LIST OF PROJ]TABLE: 4.1

ECTS OF NTPC LTD. IN THE NO.RTHERN REGIONSINo.

Projects

(State)

ApprovedCapacity(MW)

UnitsCommissioned(MW)

Units to beCommissioned(MW)

Coalfleld/GasSource

Approved | Investment &Extemal Financing (Rs in crore)

1 Singrauli(U.P.)

2000 5 x200 +2 x500

Nil Jayant/Bina 1190.69 IDA, KFW

2 Riband(U.P.)

2000 2x500 2x500 Almori 2387.4+3541.97UK

3 Unchahar(U.P)

840 2 x210 Nil NorthKaranpura

925*+1412.09 ADB,SBI, USA

4 Tanda(U.P.)

440 4x110 Nil NorthKaranpura

1000*Nil

TOTAL 5280 4280 1000 * Cost of transfer from UPSEB to NTPC

Source; Compiled and computed from published Annual Reports of NTPC Ltd.

105

TABLE: 4.2A LIST OF PROJECTS OF NTPC LI U. IN THE NAT[ONAL CAPITAL REGION

SINo

Projects(State)

ApprovedCapacity(MW)

UnitsCommissioned(MW)

Units to be Commissi oned (MW)

Coalfield/GasSource

Approved Investment &Extemal Financing (Rs in crore)

1 NationalcapitalThermalPowerprojectDadri(U.P.)

840 4x210 Nil NorthKaranpura

1669.21IBRD

2 G.P.P. ofDadri(U.P)

817 4 xl31 +2 X 146.5

Nil HBJ Pipeline 960.35KFW

3 G.P.P. of Anta(Rajasthan)

413 3x88+1x149 Nil HBJ Pipeline 418.97IBRD

4 G.P.P. ofAuraiya(U.P)

652 4 xllO +2 xl06

Nil HBJ Pipeline 678.77IBRD

5 G.P.P ofFaridabad(Haryana)

430 2 xl43 +1 xl44

Nil HBJ Pipeline 1163.6JBIC

TOTAL 3152 3152 NILSource: Compiled and computed from publishec Annual Reports of NTPC Ltd. |

106

TABLE 4.3LIST OF PROJECTS OF NTPC LTD. IN THE EASTERN REGION

SLNO

PROJECTS(STATE)

APPROVEDCAPACITY(MW)

UNITSCOMMISSIONED(MW)

UNITS TO BECOMMISSIONED(MW)

COALFIELD/GASSOURCE

APPROVEDINVESTMENT&EXTERNALFINANCING(RS INCRORE)

1 Farakka(W.B.)

1600 3 x200 +2 x500 Nil Rajmahat 730.93+2453.29 IBRD, IDA, KFW, Italian credit

Kahalgaon(Bihar)

840 4x210 Nil Rajmahat 1715.89USSR

3 TalcherKaniha(Orissa)

3000 2x500 4x500 Talcher 2592.18+6648.83IBRD, French credit

4 TalcherThermal(Orissa)

460 4x60 +2x110 Nil Talcher 356Nil

Total 5900 3900 2000Source: Compiled and computed from published Annual Reports ofNTPC Ltd.

107

TABLE 4.4 || LIST OF PROJECTS OF NTPC LTD. IN THE SOUTHERN REGION.

SLNO

PROJECTS(STATE)

APPROVEDCAPACITY(MW)

UNITSCOMMISSIONED(MW)

UNITS TO BECOMMISSIONED(MW)

COALFIELD/GASSOURCE

APPROVED INVESTMENT &EXTERNAL FINANCING (RS IN CRORE)

I Simahadri(AndhraPradesh)

1000 2x500 Nil Talcher 3650.79JBIC

2 Ramagundam(AndhraPradesh)

2600 3 x200 +3 x500

1 x500 SouthGodavariCoalfield

2059.22+1818.16 IBRD, IDA, OPEC

3 G.P.P of Kayamkulam (Kerala)

350 2 xII5 + 1 xl20

Nil Naptha 1310.58IBRD, SBI, USA.

Total 3950 3450 500Source; Compiled and computed from published Annual Reports of NTPC Ltd. |

108

TABLE: 4.5LIST OF PROJECTS OF NTPC LTD. IN THE WESTERN REGION

SINo

Projects(State)

ApprovedCapacity(MW)

UnitsCommissioned(MW)

Units to beCommissioned(MW)

Coalfield/GasSource

Approved Investment &Extemal Financing 1 (Rs in crore)

1 G.P.P.ofKawas(Gujarat)

645 4 xl06+ 2x110.5

Nil HBJPipeline

1599.57IBRD, French credit, Belgian credit

2 Korba(Chhattisgarh)

2100 3 X 200 +3 x500

Nil KusmundaBlock

1625.25IDA,OPEC,KFW

3 G.P.P OF Jhanar Gandhar (Gujarat)

648 3 xl31 +1 x255

Nil Gandhar Gas Field

2500JBIC

4 Vindhyachal (M. P.)

2260 6 X210 + 2 x500

Nil Nilgahi 1460.37+2593.05 USSR,IBRD,SBI, USA

Total 5653 5653 NilSource: Compiled and computed from published Annual Reports of NTPC Ltd.

109

TABLE: 4.6GROWTH OF GENERATING CAPACITY OF NTPC LTD. DURING EIGHTH & NINTH

PLAN PERIOD

Year Capacity (In MW) at the year end

Capacity Added

(In MW)1992-93 13,054 17211993-94 14,529 14751994-95 15,625 10961995-96 16,795 11701996-97 16,795 NIL

Addition in 8“’ Plan period 54621997-98 16,795 Nil1998-99 17,735 9401999-00 19,291 15562000-01 19,435 1442001-02 19,935 500

Addition in 9**̂ Plan Period 3,140Total Addition during two Plan Period 8602

Source; Compiled and computed from published Annual Reports of NTPC Ltd.

1 1 0

TABLE 4.7

STAIHMENT SHOWING NO. OF EXECUTIVES,

SUPERVISORS, WORKMEN IN NTPC LTD.

YEAR EXECUTIVES SUPERVISORS WORKMEN TOTAL

1997-98 6933 3074 13578 23585

1998-99 7248 3059 13323 23630

1999-00 7607 2893 13524 24024

2000-01 7945 2779 13254 23978

2001-02 8423 2435 13114 23972

Source: Compiled and computed from published Annual Reports of NTPC Ltd.

<4.5

STATEMENT SHOWING NO. OF EMPLOYEES,

PER CAPITA VALUE (RS. LAKH) AND TOTAL VALUE (RS. CRORE) OF

NTPC LTD.

CATEGORY NO. OF

EMPLOYEES

PER CAPITA VALUE

(RS LAKHS)

TOTAL VALUE

(RS CRORE)

Executives 8423 46.51 3657.30

Supervisors 2435 41.56 1106.92

Workmen 13114 36.98 4779.15

Total 23972 40.75 9769.42

Source; Compiled and computed from pub ished Annual Reports of NTPC Ltd.

I l l

MATABLE4.9

N- MW RATIO OF NTPC LTD.YEAR MAN-MW RATIO

1992-93 1.431993-94 1.301994-95 1.231995-96 1.261996-97 1.271997-98 1.231998-99 1.171999-00 1.102000-01 1.092001-02 1.06

Source: Compiled and computed from published Annual Reports of NTPC Ltd.

1 1 2

TABLE 4.10

STATEMENT SHOWING VALUE ADDED, TURNOVER AND GENERATION PER

EMPLOYEES DURING EIGHTH AND NINTH FIVE YEAR PLAN PERIOD

YEAR VALUE ADDED/EMP

(RSLAKH)TURNOVER/EMP (RS LAKH)

GENERATION/ EMP (IN MUS)

1992-93 10.54 20.57 3.03

1993-94 13.65 26.99 3.49

1994-95 14.75 28.53 3.43

1995-96 18.53 34.37 3.70

1996-97 25.63 45.97 4.56

1997-98 31.64 61.52 5.13

1998-99 36.68 67.56 5.26

1999-00 42.87 75.72 5.58

2000-01 48.54 89.46 6.11

2001-02 38.00 84.00 6.26

Source: Compiled and computed from published Annual Reports of NTPG Ltd.

113

TABLE 4.10

STATEMENT SHOWING VALUE ADDED, TURNOVER AND GENERATION PER EMPLOYEES DURING EIGHTH AND NINTH FIVE YEAR PLAN PERIOD

YEAR VALUE ADDED/EMP (RSLAKH)

TURNOVER/EMP (RS LAKH)

GENERATION/ EMP (IN MUS)

1992-93 10.54 20.57 3.03

1993-94 13.65 26.99 3.49

1994-95 14.75 28.53 3.43

1995-96 18.53 34.37 3.70

1996-97 25.63 45.97 4.56

1997-98 31.64 61.52 5.13

1998-99 36.68 67.56 5.26

1999-00 42.87 75.72 5.58

2000-01 48.54 89.46 6.11

2001-02 38.00 84.00 6.26

Source: Compiled and computed from published Annual Reports of NTPG Ltd.

113

Performance of NTPC in terms of value added, turnover, generation

sc

1992-93 1 993-94 1 994-95 1 995-96 1 996-97 1997-98 1 998-99 1 999-00 2000-01 2001-02

YEAR

FIGURE 4.2

115