PRESENTATIONON

CAPITAL BUDGETINGOF

MAHARASHTRA STATE ELECTRICITY TRANSMISSION

COMPANY LIMITED( MSETCL )

UNDER THE GUIDANCE OF :SHRI. RAJESH PAWAR

AGM ( CORPORATE FINANCE )

Presented by –SAGAR SAWANT

COMPANY STRUCTURE

MSEB HOLDING

CO. LTD.

COMPANY PROFILE MSETCL is a state government electricity

company.

MSETCL as the State Transmission Utility (STU) of Maharashtra, is responsible for building and maintaining the Power Transmission Network for the State.

M.S.E.T.C.L. ensures compliance with statutory requirements along with norms and procedures laid down by the Board & State Government.

CAPITAL BUDETING

• Capital budgeting (or investment appraisal) is the planning process used to determine whether a firm's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.

Procedure of Capital Budgeting in MSETCL

1. Five year plan covering physical targets and financial targets.

2. In Member Board meeting resolution is passed to approve the scheme.

3. Chief Engineer communicates all with a copy to Budget Section, physical plan Revised Estimate and Budget Expenditure to provide their Financial Budget.

FTU SECTIONCAPEX SECTION LOAN DEPT.

SCOPE OF WORK

Annual Performance Review of Scheme. Zone STU Plan.

Reconciliation of CB2 file.

Analysis of line Extension Scheme.

Monthly Information System of CB2 file.

FACTS & FINDINGS

1. Huge gap in the demand for power and its supply in Maharashtra.

2. Redundancy in transformer capacity and line.

3. Transmission Open Access.

4. Improvement in overall availability, and efficiency of transmission system.

RECOMMENDATIONReduce MSETCL technical and non-technical

losses.

Reinforce transmission systems by financing equipment, materials, and plants, for expanding or constructing sub-stations.

Provide technical assistance in the areas of reform project management.

CONCLUSIONS

Raising the resources from the Markets.

Major concern for the company is its sensitivity to Roe.

THANK YOU