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7 CHAPTER - 1 PERFORMANCE HIGHLIGHTS The Electricity Act, 2003 Section 3(i) of Electricity Act 2003 mandates the Central Government to prepare the National Electricity Policy Tariff Policy in consultation with State Governments and the Central Electricity Authority (CEA). The National Electricity Policy aims at accelerated development of the power sector, providing supply of electricity to all areas and protecting interests of consumers and other stakeholders keeping in view availability of energy resources technology available to exploit these. resources, economics of generation using different resources and energy security issues. Salient features of the Policy are as under : - Access to Electricity : Available for all households in next five years. Availability of Power : Demand to be fully met by Energy and peeking shortages to be overcome and spinning reserve to be available. Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates. Per capita availability of electricity to be increased to over 1000 units by Minimum lifeline consumption of 1 unit/household/day as a merit good by year Financial Turnaround and Commercial Viability of Electricity Sector. Protection of consumers' interests. REFORM STATUS The Tariff Policy was amended on 31st March, 2008 to provide for: (i) A developer of a hydroelectric project, not being a State controlled/owned company to have the option of getting tariff determined by the Appropriate Commission on the basis of performance based cost of service regulations. (ii) One percent free power towards local area development fund (thus total free power 13%). (iii) Every project affected family to get 100 unit of electricity free of cost for a period of ten years. Amendment to the Resolution on establishment of Regional Power Committee The Central Government vide resolution dated 9th May, 2008 has issued second amendment to the Resolution on establishment of Regional Power Committee under the provisions of the Electricity Act, Hon ble President Smt. Pratibha Devisingh Patil at the prize distribution for Meritorious Performance in Power Sector alongwith Sh. Sushilkumar Shinde, Minister of Power, Sh. Jairam Ramesh, Minister of State, Sh. V.S. Sampath, Secretary (Power) and Sh. Rakesh Nath, Chairperson CEA 1

8 Notificatioin of Salaries Allowances and other conditions of service of Chairperson and Members, Officers and Staff of Appellate Tribunal for Electricity (APTEL) The Government has notified the Appellate Tribunal for Electricity (Salaries Allowance and other conditions of service of Chairperson and Members) (Amendment) Rules, 2008 on 29th September, The Government has also notified the Appellate Tribunal for Electricity Salary, Allowances and other conditions of service of the officers and employees (Second Amendment) Rules, 2008 on 22nd July, CERC issued regulations on terms and condition of tariff for generation and Transmission CERC on has issued the Tariff Regulations for generation and transmission projects for the period These regulations have been finalized after detailed consultation with the stakeholders and would also be the guiding principles for the State Electricity Regulatory Commissions. The regulations aim at attracting much desired investment in power infrastructure in the country while ensuring that the consumers get electricity at reasonable cost. Staff Paper on measures for restraining the prices of Electricity in short term sale / trading In view of the concerns being expressed regarding the increase in prices of electricity being sold/traded in shortterm, the staff of the Commission circulated a discussion paper titled "Measures for restiaining the prices of electricity in short-term sale/trading". CERC has passed an order on in which no price cap has been envisaged. Capacity Addition The all India installed power generation capacity as on was MW comprising of MW thermal, MW hydro, 4120 MW nuclear and MW R.E.S. Capacity addition programme and achievement during The capacity addition target for the year was MW which has been revised to 7530 MW because of the revised definition of commissioning of power projects and the achievement as on was 3454 MW. Revised definition of Commissioning Earlier rotation of the machine in case of hydro projects and oil synchronization in case of thermal projects were treated as commissioning for declaring capacity addition. However, the definitions have since been changed as follows : Hydro projects : Capacity addition in respect of hydro projects would be the date when following conditions are met : (i) The trial run operation has started. (ii) The unit had achieved full rated capacity in case of purely run of river station and run of river stations with pondage. (iii) The unit has achieved full rated capacity or the designed capacity corresponding to prevailing reservoir level in case of storage power stations. Thermal projects : Commissioning of the plant can be related to actual output in the form of generation that is emerging from plant for auxiliary consumption and input to the grid based on its designated fuel and completion of all plants and equipments require for fuel handling and safe operation of the plant. Monitoring : The Ministry of Power has adopted a robust monitoring system for the capacity addition programme so as to see that the cleared projects are executed in time. The monitoring mechanism comprises of 3 broad levels at which monitoring of power projects are carried by the Ministry viz. by the Central Electricity Authority(CEA); by the Ministry of Power; and through the Power Project Monitoring Panel(PPMP). ULTRA MEGA POWER PROJECTS(UMPP) STATUS OF ULTRA MEGA POWER PROJECTS Mundra in Gujarat : The project was handed over to the Successful Bidder i.e., Tata Power Company Ltd., on at the evaluated levelised tariff of Rs / kwh As per available information, two units of 800 MW each are expected to be commissioned in the XI Plan. Orders for turbine and steam generator have been placed by the developer. Piling work of all boilers, turbines & chimney has been completed and structural erection work for boilers is in progress. Sasan in Madhya Pradesh : The project was handed over to the Successful Bidder i.e., M/s Reliance Power Ltd., on at the evaluated levelised tariff of Rs / kwh. Financial closure has been achieved and order for main plant equipment has been placed by developer. Krishnapatnam in Andhra Pradesh : The project was handed over to Reliance Power Ltd., on at the levelised tariff of Rs. 2.33/kWh. The development work is being undertaken by the developer. Tilaiya in Jharkhand : The financial bids of the project were opened on M/s. Reliance Power Ltd. was the successful bidder with an evaluated levelised tariff of Rs per kwh. Lol was handed over to the successful bidder on With respect to UMPP in Tamil Nadu, the site at Cheyyur is finalised, along with captive port which is under finalisation. Consultants have been appointed by the SPV of PFC for carrying out various studies. As far as the other UMPPs to be located in the States of Chhattisgarh, Karnataka, Maharashtra and Orissa are concerned, requisite inputs regarding land availability and water linkage are being examined in consultation with the concerned State Governments. The further progress of these four UMPPs is therefore dependent on early finalization of the site and water availability. Some States have also requested for additional UMPPs; for this, suitable sites are being identified. 2

9 Accelerated Power Development and Reforms Programme (APDRP) Guidelines for the Re-structured Accelerated Power Development and Reforms Programme (APDRP) during XI Plan has been issued vide OM No. 14/04/2008-APDRP dated 22nd December At National Level 98% feeders and 88% of the consumers have been metered so far. 100% feeder metering have been achieved in 23 states. Grant of Navratna status to Power Grid Corporation of India Ltd. (PGCIL) D/o Public Enterprises vide their O.M. No. 26(3)/2005-GM-GL- 92 dated 1st May, 2008 has conferred Navratna status to PGCIL. Creation of an Independent System Operator The arrangement of the operation of national and regional load dispatch centres has been reviewed by the Government of India and it has been decided with the approval of the Competent Authority to advise the Power Grid Corporation of India Ltd. (PGCIL) as under : - (a) To set up a wholly owned subsidiary company of Power Grid Corporation of India Limited (PGCIL) responsible for independent system operation with separate accounting and Board structure. Stake holders will be appropriately represented on the Board of the subsidiary company and eventually may have shareholding in the ISO company. The formal procedure for doing so including manpower requirements will be transparently laid down. The revenue streams for PGCIL and the subsidiary will be clearly earmarked without any additional burden on the states. (b) This subsidiary company will be gradually made independent from the PGCIL at the appropriate time, say after five years. (c) Clear Rules and Guidelines shall be prepared immediately for the consultative and decision making process as being followed by TRAI. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY) A scheme Rajiv Gandhi Grameen Vidyutikaran Yojana for Rural Electricity Infrastructure and Household Electrification was launched for the attainment of the National Common Minimum Programme of providing access to electricity to all Rural Households by Rural Electrification Corporation (REC) is the nodal agency for the scheme. On 3rd January, 2008, the Government has given the approval for continuation of RGGVY in XI Plan with a provision of Rs. 28,000 crore. Website for RGGVY (both in Hindi & English) was launched on 28th May, 2008 and is available at New Hydro Policy New Hydro Policy has been notified on 31/03/2008. Power Generation The electricity generation target for the year was fixed as Billion Units (BU) i.e. growth around 9.0 % over generation target of 710 BU for the previous year In the current financial year, the actual electricity generation was BU against BU generated during corresponding period of previous financial year. Sh. H.S. Brahma, Secretary (Power) with officers of NPTI 3

10 GENERATION PLF OF THERMAL STATIONS 4

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12 Central Electricity Authority Rakesh Nath Chairperson Member (Thermal) Gurdial Singh Member (Hydro) Member (Planning) V. Ramakrishna Member (Power System) S. M. Dhiman Member (Grid Operation & Distribution) Member (Economic & Commercial) ORGANISATION STRUCTURE SUSHILKUMAR SHINDE MINISTER OF POWER BHARATSINH SOLANKI MINISTER OF STATE FOR POWER H. S. BRAHMA SECRETARY (POWER) Anil Kumar Addl. Secretary Gireesh B. Pradhan Addl. Secretary Jayant Shriniwas Kawale Jt. Secretary I.C.P. Keshari Jt. Secretary Rakesh Jain Jt. Secretary & FA Devender Singh Jt. Secretary Sudhir Kumar Jt. Secretary R & R* T & UMPP# Fuel Supply# Appellate Authority (RTI) IC Climate Change Power Project Monitoring Panel R&R* Hydro Power V&S BBMB Environment Management for (Hydro Power Projects) IC Climate Change UMPP# Thermal IPP Fuel Supply# NTPC DVC Financial Matters Public Grievances RE REC COORD EC DSM BEE APDRP PFC NEF ADM. PARL OL OM Trans PGCIL * JS (Shri Kawale) will submit files relating to R&R through AS (Shri Anil Kumar) JS (Shri Kawale) will submit files relating to IC and Climate Change through AS (Shri Gireesh B. Pradhan) # JS (Shri Keshari) will submit files relating to UMPP and Fuel Supply through AS (Shri Anil (Shri Sudhir Kumar) will submit files relating to P&P through AS (Shri Gireesh B. Pradhan) and that of T&R/IT through AS (Anil Kumar) 6

13 CHAPTER - 2 MINISTRY OF POWER ORGANIZATION AND FUNCTIONS The Ministry of Power started functioning independently with effect from 2nd July, 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 number 38 in the 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 decisions, 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 has developed its website 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 given below: General Policy in the electric power sector and issues relating to energy policy and coordination thereof. (Details of short, medium and long-term policies in terms of formulation, acceptance, implementation and review of such policies, cutting across sectors, fuels, regions and intra-country and inter-country flows); All matters relating to hydro-electric power (except small/mini/micro hydel projects of and below 25 MW capacity) and thermal power and transmission & distribution system network; Research, development and technical assistance relating to hydro-electric and thermal power, transmission system network and distribution systems in the States/UTs; Administration of the Electricity Act, 2003, (36 of 2003), the Energy Conservation Act, 2001 (52 of Sh. Bharatsinh Solanki, Minister of State for Power, reviewing the NPMC functioning 7

14 Sh. H. S. Brahma, Secretary (Power), reviewing the NPTI 2001), the Damodar Valley Corporation Act, 1948 (14 of 1948) and Bhakra Beas Management Board as provided in the Punjab Reorganisation Act, 1966 (31 of 1966) All matters relating to Central Electricity Authority, Central Electricity Board and Central Electricity Regulatory Commission; Rural Electrification; Power schemes and issues relating to power supply/ development schemes/programmes/ decentralized and distributed generation in the States and Union Territories; Matters relating to the following Undertakings / Organizations: a. Damodar Valley Corporation; b. Bhakra Beas Management Board (except matters relating to irrigation); c. NTPC Limited; d. National Hydroelectric 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. Satluj Jal Vidyut Nigam Limited; k. Central Power Research Institute; l. National Power Training Institute; m. Bureau of Energy Efficiency; All matters concerning energy conservation and energy efficiency pertaining to Power Sector. ORGANISATIONS UNDER THE MINISTRY OF POWER In all technical and economic matters, Ministry of Power is assisted by the Central Electricity Authority (CEA), constituted under section 3 (1) of the Electricity (Supply) Act, 1948 which has now been replaced by Electricity Act, The CEA advises the Ministry of Power on all technical and economic matters. The construction and operation of generation and transmission projects in the Central Sector are entrusted 8

15 to Central Sector Power Corporations, viz. The NTPC Limited, the National Hydro-Electric Power Corporation (NHPC), the North-Eastern Electric Power Corporation (NEEPCO) and the Power Grid Corporation of India Limited (PGCIL). The PGCIL 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, Satluj Jal Vidyut Nigam Ltd. (SJVNL) and Tehri Hydro Development Corporation (THDC) are responsible for the execution of the Satluj Jal Vidyut Nigam Ltd. (SJVNL) in Himachal Pradesh and projects of the Tehri Hydro Power Complex in Uttarakhand respectively. Statutory bodies i.e., Damodar Valley Corporation (DVC) and 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 Bureau of Energy Efficiency (BEE) are also under the administrative control of the Ministry of Power. ORGANISATION SET-UP Shri Sushilkumar Shinde is the Minister of Power since the 30th January, He demitted office on and again assumed charge as Minister of Power with effect from the 28th May Sh. Jairam Ramesh was the Minister of State for Power since the 6th April, He demitted office on 25/2/2009. Shri Bharatsinh Solanki is the Minister of State for Power with effect from the 28th May Shri Anil Razdan, Secretary in the Ministry of Power retired from Government Service on on attaining the age of superannuation. Shri V. S. Sampath assumed charge as Secretary in the Ministry of Power with effect from the 2nd January, On his appoinment as Election Commisioner of India on (F/N) he deemed to have retired from same date. Shri H. S. Brahma assumed charge as Secretary in the Ministry of Power with effect from the 12th May, The Ministry has two Additional Secretaries and five Joint Secretaries, including the Financial Adviser. Shri Anil Kumar, Additional Secretary, oversees the work relating to Reforms & Restructuring and Ultra Mega Power Projects; Training & Research; Information Technology; Fuel Supply. He is also designated the Appellate Authority under Right to Information Act and meetings in Cabinet Secretariat. Shri Gireesh B. Pradhan, Additional Secretary, oversees the work relating to Policy & Planning; Power Projects Monitoring Panel, International Cooperation; Climate Change and meetings in Prime Minister's Office. The allocation of work among the five Joint Secretaries in the Ministry of Power is as under: i) Hydro Power Projects; Reforms and Restructuring and Vigilance & Security; Bhakra Beas Management Board; Environment Management for Hydro ProjectPower Plants; Internation Coorporation; climate change. ii) Ultra Mega Power Project; Thermal; National Thermal Power Corporation; Damodar Valley Corporation; Independent Power Producers and Fuel Supply; iii) Accelerated Power Development and Reforms Programme, Power Finance Corporation, Rural Electrification; Rajiv Gandhi Gramin Vidyutikaran Yojana; Rural Electrification Corporation; Energy Conservation; Demand Side Management; Energy Efficiency; Bureau of Energy Efficiency; National Electricity Fund and Coordination issues; iv) Transmission; Power Grid Corporation of India Limited; Administration; Parliament and Official Language; Operation Monitoring; Policy & Planinig; Training & Research; Information Technology. v) Internal Finance; Budgetary Control and Public Grievances. 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 Ex- Servicemen in the Ministry including PSUs under its administrative control are dealt with by the Deputy Secretary (Admn), who is also the Liaison Officer for SC/ST and there is a separate Liaison officer for OBCs. The sanctioned strength of the Ministry is

16 CHAPTER - 3 GENERATION & POWER SUPPLY POSITION GENERATION The total electricity generation in the country increased from Billion Unit (BU) during to BU during The overall electricity generation in power utilities in the country as well as import from Bhutan since the beginning of 9th Plan was as under : Year Generation (BUs) POWER SUPPLY POSITION The power supply position since beginning of 9th Plan was as under : 10 PLANT LOAD FACTOR (PLF) The Plant Load Factor (PLF) of Thermal Power Stations in the country has been steadily increasing over the years, representing higher utilization of the installed capacity. The average PLF of TPSs of Power Utilities during was 77.22%. The sector-wise and overall PLF since beginning of 9th Plan was as under : Year Central State Private Overall Year Energy Requirement (MU) Energy availability (MU) Energy shortage (MU) Energy Shortage (%) PEAK DEMAND : Year Peak demand (MW) Peak Met (MW) Peak shortage (MW) Peak Shortage (%)

17 GENERATION (BU) PLANT LOAD FACTOR 11

18 POWER-SUPPLY POSITION - ENERGY POWER SUPPLY POSITION - PEAK 12

19 CAPACITY ADDITION PROGRAMME IN THE XITH PLAN 1. The National Electricity Policy (NEP) stipulates power for all and annual per capita consumption of electricity to rise to 1000 units by 2012 This entails provision of adequate reliable power, at affordable cost with access to all citizens. Electricity is in the Concurrent List in the Constitution and the primary responsibility of structuring its availability and distribution is that of the States. However, both the Centre and the States have to play a decisive and positive role. While shortages are presently being experienced by each region, it is much more acute in the case of some regions/states. 2. The all India installed power generation capacity as on was MW comprising of MW CHAPTER - 4 thermal, MW hydro, 4120 MW nuclear and MW R.E.S. The Central Sector s share in generation has gradually increased from 12% in 1979 to 33% as on On the other hand the share of the State Sector has declined from 82.5% to 51% while the share of Private Sector has gone up from 5.2% to 16% during the same period. 3. To fulfill the objectives of the NEP, a capacity addition of 78,700 MW has been proposed for the 11th Plan. This capacity addition is expected to provide a growth of 9.5% to the power sector. The breakup of the capacity addition target is given as under: (in MW) Source Central State Private Total Share(%) Hydro Thermal Nuclear Total Share (%) Sh. Sushilkumar Shinde, Minister of Power alongwith Sh. Anil Razdan, Secretary (Power) and DG, BEE on Energy Conservation Day. 13

20 4. Capacity addition programme and achievement during The capacity addition target for the year was Programme MW which was subsequently revised to MW the achievement for the same year was 9263 MW. The details of programme and achievement for the year are as given below: Central sector State sector Private sector Total Thermal Hydro Nuclear Total (In MW) Achievement ( to ) Central sector State sector Private sector Total (MW) Thermal Hydro Nuclear Total Revised definition of Commissioning Earlier rotation of the machine in case of hydro projects and oil synchronization in case of thermal projects were treated as commissioning for declaring capacity addition. However, the definitions have since been changed from the year as follows: Hydro projects: Capacity addition in respect of hydro projects would be the date when following conditions are met: (i) The trial run operation has started. (ii) The unit had achieved full rated capacity in case of purely run of river station and run of river stations with pondage. (iii)the unit has achieved full rated capacity or the designed capacity corresponding to prevailing reservoir level in case of storage power stations. Thermal projects: Commissioning of the plant can be related to actual output in the form of generation that is emerging from plant for auxiliary consumption and input to the grid based on its designated fuel and completion of all plants and equipments required for fuel handling and safe operation of the plant. 6. Capacity addition programme and achievement during The capacity addition target for the year was MW which has been revised to 7530 MW because of the revised definition of commissioning of power projects and the achievement as on was 3454 MW. The details of programme and achievement made till are as given below: Programme Central sector State sector Private sector Total (MW) Thermal Hydro Nuclear Total

21 Revised capacity addition target during Central sector State sector Private sector Total (MW) Thermal Hydro Nuclear Total Achievement ( to ) Central sector State sector Private sector Total (MW) Thermal Hydro Nuclear Total Feasible Capacity Addition during XI Plan As against the 11th Plan target of MW set by the Planning Commission, the CEA has, on the basis of preparedness of the projects, revised the feasible capacity addition target for the 11th Plan to 80010MW. Out of this, status of the progress achieved up to is given in the Table below:- Status of Eleventh Five Year Plan capacity addition (MW) (As on ) Status Central sector State sector Private sector Total (MW) Commissioned Under Construction Total Capacity addition (last five years) In the last five years including (April 2008 March, 2009), the following new capacities have been added: Status of Eleventh Five Year Plan capacity addition (MW) (As on ) Year Central State Private Total Monitoring of Capacity Addition Programme In order to ensure that the power projects cleared are executed in time, the Ministry of Power has adopted a system of close monitoring of all ongoing projects. The monitoring is carried out at three broad levels viz. by the Central Electricity Authority; by the Ministry of Power; and through the Power Project Monitoring Panel (PPMP). Monitoring by the Central Electricity Authority The Central Electricity Authority (CEA) has a nodal officer associated with each on going project which continuously monitors the progress at site through frequent visits and continuous interaction. The respective nodal officer is responsible for submitting a report on the progress of each of the on going power project on monthly basis highlighting the critical areas where corrective actions are required. The Chairperson, CEA reviews monthly progress of the ongoing projects with the nodal officers. The CEA also holds quarterly review meeting with the developers and other stakeholders. 15

22 Sh. P. K. Kognolkar, DG CPRI, receiving Indira Gandhi Rajbhasha Award from Hon ble President Smt. Pratibha Devisingh Patil Monitoring by the Ministry of Power Regular Quarterly Progress Reviews (QPRs) with CEA and the nodal officers of the projects are held by the Ministry of Power to review the critical milestones associated with each on-going project. QPRs with the leading equipment manufacturers, especially BHEL are organized to review the critical supplies to the projects. QPRs are also organized separately for each CPSU to review the status of the Central Sector projects. For State Sector Projects periodical reviews are organized on regional basis. Power Project Monitoring Panel (PPMP) As a follow up to the decision in the Conference of Chief Ministers held on May 28th, 2007, the Ministry of Power has set up a Power Project Monitoring Panel (PPMP) for monitoring of Thermal and Hydro Generation Projects targeted for commissioning during the 11th Plan along with the associated transmission schemes. The PPMP at present comprises of five independent project monitoring consultants. Each consultant is given specific projects. The individual consultants make visits to the project sites and furnish their progress report which is compiled by the coordinating consultant and along with the Exception Report submitted to the Secretary. The progress of implementation of the projects is accordingly reviewed by the Ministry on the basis of the report received from the Monitoring Panel. 10. Performance Highlights The Power Project Monitoring Panel comprising of five Independent Consultants has been made functional. 16

23 CHAPTER - 5 STATUS OF POWER SECTOR REFORMS Electricity (Amendment) Act, 2007 The Electricity (Amendment) Act, 2007, amending certain provisions of the Electricity Act, 2003, has been enacted on 29th May, 2007 and brought into force w.e.f The main features of the Amendment Act are: Central Government, jointly with State Governments, to endeavour to provide access to electricity to all areas including villages and hamlets through rural electricity infrastructure and electrification of households. No License required for sale of electricity from captive units. Definition of theft expanded to cover use of tampered meters and use for unauthorized purpose. Theft made explicitly cognizable and non-bailable. Deletion of the provision for elimination of cross subsidies. The provision for reduction of cross subsidies would continue. Operationalisation of open access: Open access is one of the key features of Electricity Act, 2003 for making the electricity industry competitive. Open access in inter-state transmission is fully operational. To give a fresh impetus to implementation of open access over transmission lines of State Utilities and over the distribution networks, the Ministry of Power convened the Conference of the Chief Secretaries in April, 2007 and the Conference of Chief Ministers in May, 2007, in which open access were one of the agenda items. The Ministry also convened interaction with the Forum of Regulators (FOR) and the State Power Secretaries on exclusively on Operationalisation of open access at State level. The SERCs have resolved to actively operationalise open access. The Forum has also launched a website to display the open access charges and status of open access applications in various States. Power exchanges CERC has issued guidelines for setting up power exchanges. Two Power Exchanges i.e. Indian Energy Exchange and Power Exchange India Ltd. are functional. This action is expected to stabilize the market rate of surplus power. Guidelines for procurement of electricity In compliance with section 63 of the Electricity Act, 2003, the Central Government on January 19, 2005 had notified guidelines for procurement of power by Distribution Licensees through competitive bidding. On March 31, 2006, Central Government had issued the standard bid document containing Request For Qualification (RFQ), Request For Proposal (RFP) and model Power Purchase Agreement (PPA) for long term procurement of power from projects having specified site and location through tariff based competitive bidding. The Central Government has also issued Standard Bidding Document for Case-1 on April 2, 2009, where the location, technology, or fuel is not specified by the procurer. Successful tariff based bidding for four Ultra Mega Power Project of 4000 MW each capacity has shown that competitive procurement of power leads to significant benefits to the consumers. Reorganisation of the State Electricity Boards Before enactment of the Electricity Act, 2003, various States had enacted State Electricity Reforms Acts, which provided for reorganization of their State Electricity Boards (SEB). Section 172 (a) of the Electricity Act, 2003 provides that the SEB shall be deemed to be the State Transmission Utility (STU) and a licensee under the provisions of the Act for a period of one year from the appointed date, i.e. 10th June, However a SEB can continue for some more time as agreed to mutually by State and Central Government. So far, 14 states have reorganized their SEBs. 10 States namely, Orissa, Haryana, Andhra Pradesh, Karnataka, Uttar Pradesh, Uttarakhand, Rajasthan, Delhi, Gujarat and Madhya Pradesh have done so under their State Electricity Reforms Acts. Assam, Maharashtra, West Bengal (w.e.f ), Chhattisgarh (w.e.f ) have reorganized their SEBs under the provisions of the Electricity Act, The SEB of Assam presently continues to discharge the licensee function only for trading of electricity. Government of Tripura has corporatised its electricity department. The remaining states of Bihar, Jharkhand, Kerala, Punjab, Tamil Nadu, Meghalaya and Himachal Pradesh are in the process of formulating schemes for reorganisation of their SEBs. 17

24 CHAPTER - 6 DISTRIBUTION REFORMS & ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME (APDRP) Distribution Reforms: The Ministry of Power took various initiatives towards reforms and other policy measures for helping the state power Utilities to bring improvement in their efficiency towards bringing about commercial viability in the power sector. Some of the major initiatives were establishment of regulatory mechanism at central and state level, restructuring of the state power Utilities, metering of feeders & consumers, energy accounting & auditing, securitization of outstanding dues of CPSUs. Ministry of Power signed the MOU with states to under take distribution reforms in time bound manner. 27 states, so far have either constituted or notified their regulatory commission and 22 have issued tariff orders in the direction of rationalizing the tariffs. Now the states are moving towards Multi-Year Tariff, Time of Day Metering and intra state availability based tariff. 15 SEBs / Electricity Departments have been unbundled & corporatised. All the states have securitized their outstanding dues towards CPSUs. Electricity Distribution has been privatized in Delhi and Orissa. At national level 98% feeders and 88% of the consumers have been metered so far. 100% feeder metering have been achieved in 20 States. ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME: The Accelerated Power Development Reforms Programme (APDRP) was launched in for implementation in 10th Plan as additional central assistance to the states for strengthening and up gradation of sub-transmission and distribution systems of high-density load centres like towns and industrial areas. The main objectives of the programme were to reduce AT&C loss, reduction of commercial loss and improve quality and reliability of supply. The Programme has two components: Investment component- Central Government provides assistance to the tune of 25% and 90% of the project cost in the form of grant to Non-special category and Special Category states respectively. Balance amount to be arranged from Financial Institutions / own resources. The status as on 31st March 2009: No of projects sanctioned : 571 Total project Cost : Rs. 17, Crore APDRP (GOI) Component : Rs. 8, Crore Total fund released by GOI : Rs. 7, Crore C/Part drawn from FIs : Rs. 6, Crore Total fund utilized : Rs. 13, Crore Earlier, Government was providing 10% loan to special category and 25% to Non-special category states in addition to the grant as mentioned above. However, as recommended by the 12th Finance Commission, the loan component has been discontinued by the Ministry of Finance w.e.f Funds are released by Ministry of Finance, Government of India under the advice from Ministry of Power in three instalments progressively based on implementation progress. Except Jammu & Kashmir all States have completed or short closed the APDRP schemes sanctioned by GOI. Incentive component- This component is to incentivize the SEBs / utilities to reduce their financial losses. Funds are released to the SEBs for actual cash loss reduction, for every Rs.2 of cash loss reduction Rs.1 is given as grant. The cash losses are calculated net of subsidy and receivables. The year has been adopted as the base year. Nine states have shown reduction of cash loss amounting to Rs Crore and became eligible for APDRP incentive of Rs Crore. Government has released Rs Crore so far to Andhra Pradesh, Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and West Bengal. Although at national level the AT&C loss of state power utilities has not shown much improvement over the past three years. The loss has come down in towns where APDRP has been implemented. Some of the utilities which adopted various interventions as envisaged under the programme have shown significant reduction in AT&C loss. AT&C losses have been bought down below 20% in 215 APDRP towns in the country of which 163 towns have been brought below 15%. 18

25 The billing efficiency at national level has improved from 68.37% during to during The national average collection efficiency has also improved from 92.68% during to 94.20% during With this improvement in billing and collection efficiency, the national average AT&C loss of the distribution companies has reduced from 36.63% to 33.07%. The overall commercial loss (without subsidy) of the utilities reduced from Rs. 29,331 Crore during to Rs. 27,446 Crore during RE-STRUCTURED APDRP: Cabinet Committee on Economic Affairs (CCEA) approved the Re-structured APDRP" for XI Plan as a Central Sector Scheme in its meeting held on The focus of the programme is on actual, demonstrable performance in terms of AT&C loss reduction. Projects under the scheme would be taken up in two parts in urban areas-towns and cities with population of more than 30,000(10,000 in case of special category states). Projects execution under the scheme to be taken up in Two Parts. Part-A shall include the projects for establishment of baseline data and IT applications for energy accounting/auditing & IT based consumer service centers. Part-B shall include regular distribution strengthening projects. The activities to be covered under each part are as follows: Part A: Preparation of Base-line data for the project area covering Consumer Indexing, GIS Mapping, Metering of Distribution Transformers and Feeders, and Automatic Data Logging for all Distribution Transformers and Feeders and SCADA / DMS system for big cities only. It would include Asset Mapping of the entire distribution network at and below the 11Kv transformers and include the Distribution Transformers and Feeders, Low Tension lines, poles and other distribution network equipment. It will also include adoption of IT applications for meter reading, billing & collection, energy accounting & auditing, redressal of consumer grievances, establishment of IT enabled consumer service centers etc. The base line data shall be verified by an independent agency appointed by the Ministry of Power. Part B: Renovation, modernization and strengthening of 11 kv level Substations, Transformers/Transformer Centers, Re-conductoring of lines at 11kv level and below, Load Bifurcation, Load Balancing, HVDS, installation of capacitor banks and mobile service centers etc. In exceptional cases, where subtransmission system is weak, strengthening at 33 kv or 66 kv levels may also be considered. Expected investment in Part-A (Baseline System) shall be Rs. 10,000 crore and that in Part-B shall be Rs. 40,000 crore. Shri S. K. Garg, CMD, NHPC receiving the Jury Award for Environment upgradation at the India Power Awards 2008 from Shri Anil Razdan, Secretary (Power) Government of India 19

26 Initially 100% funds for Part A and 25% (90% for special category states) funds for Part B projects shall be provided through loan from the Govt. of India. The balance funds for Part B projects shall be raised from financial institutions. The entire amount of loan for Part-A projects shall be converted into grant once the establishment of the required Base-line data system is achieved and verified by an independent agency appointed by MoP. Up-to 50% (90% for special category States) of the project cost of Part-B projects shall be converted into grant in five equal tranches on achieving the 15% AT&C loss in the project area on a sustainable basis for a period of five years. In addition, utility level loss reduction (AT&C 3% per annum for utilities with baseline loss levels exceeding 30% 1.5% for utilities with baseline loss levels less than 30% have to be achieved. Part C of the programme is an enabling component for the implementation of APDRP. Provision of Rs 1,177 Crore trough GBS has been provided in the scheme. This part is to be implemented by Ministry of Power / Nodal Agency. PFC has been appointed as nodal agency for operationalising the programme. The following activities are included in Part C: Preparation of a template for System Requirement Specifications for sub-division automation and for customer relations management module, as well as for automated baseline data collection systems, Validation of the Base-line Data to be done by independent agencies identified through bidding process by the Ministry or its nominee. Independent agencies will also verify the AT&C losses and monitor quality of works to be executed under Part-B. Project Advisors and Project Management Consultants Advisor cum Consultants will be appointed to assist the Ministry in monitoring of APDRP and to validate the project proposals submitted by the Distribution companies. Project Management Consultants will assist distribution companies in formulating the DPRs, in standardization of bidding/contract documents, managing the bid process, monitoring of progress, quality assurance etc. They will also facilitate the Management Information system and assist the Distribution Reforms Committees formed at the State level. Project Evaluation by Third Party will be the basis of computation of the extent of conversion of loan into grant for the specific project. A panel of Project evaluators will be finalized through a bidding process. Capacity Building and development of franchisees in Distribution Sector will be a major focus area to provide training to employees of the Distribution companies and existing & prospective franchisees in management, technical, commercial and consumer related areas, exposure to latest developments in electricity distribution, loss reduction, theft and pilferage control within India and abroad, dissemination of knowledge through Best Practice Workshops and Conferences, standardization of specifications of equipment required in electricity distribution network, standardization of contractual documents for outsourcing project management, turnkey jobs, franchising etc. Consumer Attitude Survey will be carried out to assess the impact of the measures taken in the distribution sector towards improving of servic Under Part D of the scheme, there is provision for incentive for utility staff in towns where AT&C loss levels are brought below the base line levels. An amount equivalent to 2% of the grant for Part-B projects (Rs 400 crore) is proposed as incentive of utility staff in project areas where AT&C loss levels are brought below 15%. Implementation of Re- Structured APDRP: A Steering Committee under Secretary (Power) comprising of representatives of Ministry of Finance, Planning Commission, Central Electricity Authority, Power Finance Corporation, Rural Electrification Corporation, selected State Governments (on one year rotation basis) and of Ministry of Power has been constituted. The Steering Committee will a) Sanction projects, including modification or revision of estimates; Monitor and review the implementation of the Scheme; b) Approve the guidelines for operationalisation of various components of the scheme including the approval of the charges to be paid to the nodal agency; c) Approve and sanction activities to be taken up by the Ministry under Part C of the Scheme; d) Appoint agencies for verification and validation of base-line data systems, for verifying the fulfilment of programme conditions by utilities; e) Approve conversion of loan into grant upon fulfilment of the necessary conditions. 20

27 Steering Committee till now has approved 599 Projects under Part A, at the cost of Rs crore for 13 States. The details are as follows: Sr. State No of Projects Sanctioned Project No. Sanctioned Cost (Rs Cr.) 1 Andhra Pradesh Bihar Goa Gujrat Haryana Jharkhand Karnataka Madhya Pradesh Maharashtra Rajasthan Tamil Nadu Uttrakhand Uttar Pradesh TOTAL Buget allocation for the current year (FY ) is Rs 350 crore (Rs 325 Crore loan and Rs 25 Crore grant). Rs 350 Crore has already been released to PFC, the nodal agency. The budget allocation for the next year (FY ) is Rs 1730 Crores (Rs 1650 Crores as loan and Rs 80 Crores as grant). The Ministry of Power has requested planning Commission for enhancing allocation for the next FY to Rs 5530 Crores for Restructured APDRP. 21

28 CHAPTER - 7 TRANSMISSION Transmission projects continue to be accorded a high priority in the context of the need to evacuate power from generating stations to load centres, system strengthening and creation of National Grid. Targets for the year and the achievements up to March, 2009 of Central Sector Transmission Projects including Joint Venture projects of PGCIL are summarised below: FY Parameter MOU Target Achievement upto % of Achievement (Excellent) March 09 Commissioned/ Ckt. kms ready for commissioning Transformation Capacity addition (MVA) CENTRAL SECTOR TRANSMISSION Ministry of Power has planned to establish the requisite transmission capacity in the central sector to match the generation capacity addition and encourage inter-state/inter-regional exchange of power to mitigate the situation of surplus/deficit of power in various regions. POWERGRID s transmission lines and sub-stations completed/ made ready during FY (Apr 08 to Mar 09) are shown in the following table: Sl. No. Name of the line/sub-station Voltage Class I Transmission Lines 1.0 Sipat-Seoni S/C line 354 Ckt. Kms. 765 kv 2.0 Seoni-Wardha S/C line 269 Ckt.. Kms (to be operated at 400 kv) 765 kv 3.0 Agra - Gwalior 2nd S/C line (initially to be operated at 400KV) 128 Ckt.. Kms 765 kv 4.0 LILO of existing Kolar-Sriperumbudur S/C line at Melakottaiyur 31 Ckt. Kms. 400 kv 5.0 Bareilly (POWERGRID) - Moradabad S/C line 91 Ckt. Kms. 400 kv 6.0 LILO of Madurai-Trivandrum at Tirunelveli 107 Ckt. Kms. 400 kv 7.0 Sipat - Raipur D/C line 298 Ckt. Kms. 400 kv 8.0 Teesta-V HEP - Siliguri D/C line 114 Ckt. Kms. 400 kv 9.0 RAPP-Kota S/C 75 Ckt.. Kms 400 kv 10.0 LILO of Hissar - Jaipur S/C line at Bhiwadi 156 Ckt.. Kms 400 kv 11.0 Pugalur-Madurai D/C line 246 Ckt.. Kms 400 kv 12.0 Wardha-Akola D/C line 324 Ckt.. Kms 400 kv 13.0 LILO of Rishikesh-Muzaffarnagar at Roorkee 3 Ckt. Kms. 400 kv 22

29 14.0 Ranchi-Sipat D/C line 816 Ckt.. Kms 400 kv 15.0 Kota - Merta D/C line 512 Ckt.. Kms 400 kv 16.0 Neyveli TS II Pugalur D/C line 395 Ckt.. Kms 400 kv 17.0 Kudankulam-Tirunelveli D/C line I 145 Ckt.. Kms 400 kv 18.0 Kudankulam-Tirunelveli D/C line II 160 Ckt.. Kms 400 kv 19.0 Tirunelveli-Udumalpet D/C line 534 Ckt.. Kms 400 kv 20.0 Zerda-Kankroli D/C line 470 Ckt.. Kms 400 kv 21.0 LILO of one ckt of Tanakpur - Bareilly line D/C at Sitarganj 44 Ckt. Kms. 220 kv 22.0 Vapi-Kharadpada D/C line (Dadra & Nagar Haveli) 34 Ckt. Kms. 220 kv 23.0 Vapi-Magarwada D/C line (Daman & Diu) 31 Ckt.. Kms 220 kv 24.0 Sewa II Hiranagar D/C line 157 Ckt.. Kms 132 kv 25.0 Sewa II Mahanpur D/C line 62 Ckt.. Kms 132 kv II New Sub-Stations 1.0 Melakottaiyur 2x315 MVA 400/220 kv 2.0 Damoh 2x315 MVA 400/220 kv 3.0 Ludhiana 2x315 MVA 400/220 kv 4.0 Tirunelveli 2x315 MVA 400/220 kv 5.0 Kankroli 3x315 MVA 400/220 kv 6.0 Roorkee 1x315 MVA 400/220 kv 7.0 Kota 2x315 MVA 400/220 kv 8.0 Pugalur 1x315 MVA 400/220 kv 9.0 Wardha 1x315 MVA 400/220 kv 10.0 Sitarganj 1x100 MVA 220/132 kv III Extension of Sub-Stations 1.0 Itarasi 1x315 MVA 400/220 kv 2.0 Baripada 1x315 MVA 400/220 kv 3.0 Rajgarh 1x315 MVA 400/220 kv 4.0 Bhatapara 1x315 MVA 400/220 kv 5.0 Udumalpet 1x315 MVA 400/220 kv 23

30 Responding to devastating calamity in Bihar due to floods, REC donated Rs.2.5 crore to Prime Minister's Relief Fund. CMD REC handed over cheque to Hon'ble MOP Sh. Sushilkumar Shinde TOWARDS FORMATION OF NATIONAL GRID The exploitable energy resources in our country are concentrated in certain pockets. As a result, some regions do not have adequate natural resources for setting power plants to meet future requirements whereas others have abundant natural resources. This has necessitated formation of National Power Grid to transmit power from resource rich areas to deficit areas as well as to facilitate scheduled/ unscheduled exchange of power. Ministry of Power has envisaged the establishment of an integrated National Power Grid in the country by the year 2012 with an inter-regional power transfer capacity of about 38,650 MW. A perspective transmission plan has been evolved for strengthening the regional grids and enhance the interregional power transfer capacity of National Grid with the Existing/Planned Inter-Regional Power Transfer Capacity (MW) 24 ultimate objective of establishment of strong & vibrant National Grid to support the generation capacity addition programme of XI Plan. Details of various existing/ planned links are given at Annexure-I. Further, acquiring Right of Way (ROW) for constructing transmission system is getting increasingly difficult. This necessitates creation of high capacity Transmission Highways, so that in future, constraints in ROW do not become bottleneck in harnessing natural resources. Presently, four major power regions of the country namely, North-Eastern, Eastern, Western and Northern are operating as one synchronous grid with total generating capacity of about 1,09,000 MW. This is facilitating flow of power from surplus to deficit regions bringing much needed economy. Annexure I Existing Addition in XI At the end of (Mar. 09) Plan (Balance) XI plan EAST-NORTH Dehri-Sahupuri 220 kv S/c Sasaram HVDC back-to-back Muzaffarpur-Gorakhpur 400 kv D/c (with Series Cap+TCSC) Patna Balia 400kV D/c (Quad) Biharshariff Balia 400kV D/c(Quad) Barh Balia 400kV D/c (Quad) [Barh Tr. System] Sasaram - Fatehpur 765kV S/c [DVC,NK, Maithon Tr. System] Gaya - Balia 765kV S/c [DVC,NK, Maithon Tr. System]

31 Sasaram bypassing(additional capacity) EAST-WEST Sub-total Budhipadar-Korba 220 kv 3 ckts Rourkela-Raipur 400 kv D/c with series comp.+tcsc Ranchi Sipat 400 kv D/c with series comp Rourkela-Raipur 400 kv D/c (2nd) with series comp [East-West Strengthening] Ranchi - WR Pooling Pt. 765kV S/c WEST- NORTH Sub-total Vindhyachal HVDC back-to-back Auriya-Malanpur 220 KV D/c Kota - Ujjain 220 KV D/c Gwalier-Agra 765 kv S/c[ Sasan Tr. System] Gwalier-Agra 765 kv S/c 2nd ckt [NR-WR inter-regional strengthening scheme] Zerda-Kankroli 400kV D/c [NR-WR inter-regional strengthening scheme] EAST- SOUTH Sub-total Gazuwaka HVDC back-to-back Balimela-Upper Sileru 220kV S/c Talcher-Kolar HVDC bipole Upgradation of Talcher-Kolar HVDC Bipole Sub-total WEST- SOUTH Existing Addition in XI At the end of (Mar 09) Plan (Balance) XI plan Chandrapur HVDC back-to-back Kolhapur-Belgaum 220kV D/c Barsur L. Sileru 220kV HVDC Monopole * Ponda Nagajhari 220kV D/c South - West HVDC link EAST- NORTH EAST Sub-total Malda - Bongaigaon 400 kv D/c Birpara-Salakati 220kV D/c Siliguri - Bongaigaon 400 kv D/c (Quad) [Palatana Tr. System] NORTH EAST-NORTH Sub-total NER Pooling point - Agra HVDC Bipole[Lower Subansiri Tr. System] Sub-total Various 132kV inter-regional links Total (Cumulative) 20,750 17,900 38,650 25

32 26

33 CHAPTER - 8 RURAL ELECTRIFICATION PROGRAMME Rural electrification has been regarded as a vital programme for the development of rural areas. In 1947, only 1500 villages were electrified in India. The per capita consumption was 14 units. The initial focus was on 'electrification for irrigation' to enhance agricultural produce which was reflected in the definition of village electrification accepted till that "a village was deemed to be electrified if electricity is being used within its revenue area for any purpose whatsoever". This definition of village electrification was reviewed in consultation with the State Governments and State Electricity Boards and following new definition was adopted after 1997: "A village will be deemed to be electrified if-electricity is used in the inhabited locality within the revenue boundary of the village for any purpose whatsoever. In February, 2004, the definition was made even more encompassing as also target specific. "A village would be declared electrified if : (i) Basic infrastructure such as distribution transformer and distribution lines are provided-in the inhabited locality as well as the dalit basti/ hamlet where it exists. (For electrification through Non-conventional Energy Sources a distribution transformer may not be necessary). (ii) Electricity is provided to public places like schools, panchayat offices, health centres, dispensaries, community centres, etc. and (iii) The number of households electrified should be at least 10% of the total number of households in the village. Government of India from time to time had launched the following programmes for electrification of rural areas in the country : (i) Rural Electrification under Minimum Needs Programme(MNP) This was started in 5th Five Year Plan with rural electrification as one of the components of the programme. Under this programme funds were provided as Central assistance to the states in the form of partly grants and partly loans. Since the inception of the MNP, the component that relates to rural electrification had been set off against the loan component of MNP. The areas covered under the MNP for the purposes of rural electrification were remote, far flung and difficult villages with low load potential. The scheme has been discontinued from 2004 onwards and has been subsequently merged with the new scheme, Rajiv Gandhi Grameen Vidyutikaran Yojana. (ii) Pradhan Mantri GramodayaYojana (PMGY) This scheme was launched in but rural electrification component was added in the next financial year It was being implemented by State Electricity Boards/Electricity Departments/Power Utilities which were designated as implementing agencies. Funds were being released by State Government to the implementing agencies. Funds under the programme were provided to the states as Additional Central Assistance which followed the normal-pattern of central assistance i.e 90% grant & 10% -loans for special category states, 30% grant & 70% loan for other states. The scheme has been discontinued from onwards. (iii) Kutir Jyoti Scheme This programme was launched in to provide single point light connections to households of rural families below the poverty line including harijans and adivasi families. The allocation amongst the States was based on the size of rural population below the poverty line and level of village electrification in the State, with higher, weightage given to States having larger population of rural poor and low electrification levels. This scheme has been now merged with RGGVY. (iv) Accelerated Rural Electrification Programme(AREP) The scheme was introduced in the year under which interest subsidy of 4% was to be provided on loans availed by State Governments/Power Utilities from Financial Institutions for carrying out rural electrification programme. The assistance was limited to electrification of un-electrified villages, electrification of hamlets/dalit bastis/tribal villages and electrification of households in villages through both conventional and non-conventional sources of energy. (v) Accelerated Electrification of One lakh villages and One crore households Government of India in introduced a scheme "Accelerated Electrification of One lakh villages and One crore households" by merging the interest subsidy Scheme- AREP (Accelerated Rural Electrification Programme) and Kutir Jyoti Programme. Under this scheme there was a provision for providing 40% capital subsidy for rural 27

34 The Official website of RGGVY is rggvy.gov.in Continuation of Rajiv Gandhi Grameen Vidyutikaran Yojana in Xi Plan Period The continuation of VGGVY has been approved by the Government in the XI Plan for attaining the goal of providing access to electricity to all households, electrification of about 1.15 lakh un-electrified villages and electricity connections to 2.34 crore BPL households. The approval has been accorded for capital subsidy of Rs. 28,000 crore during XI Plan period, at this stage. Decentralized Distribution Generation (DDG) UNDER RGGVY Children learning computer in a rural school electrification projects and the balance as loan Assistance on soft terms from REC. The scheme has now been merged with the new scheme RGGVY. (vi) Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) This Scheme of Rural Electricity Infrastructure and Household Electrification has been introduced in April, 2005 for achieving the National Common Minimum Programme objective of providing access to electricity to all Rural Households over a period of four years. Rural Electrification Corporation (REC) is the nodal agency for the programme. Under this scheme 90% Capital Subsidy will be provided for rural -electrification infrastructure through: - (i) Creation of Rural Electricity Distribution Backbone (REDB) with one 33/11 kv (or 66/11 kv) substation in every block where it does not exist. (ii) Creation of Village Electricity Infrastructure (VEl) for electrification of all un-electrified villages/habitations and provision of distribution transformer(s) of appropriate capacity in every village/habitation. (iii) Decentralized Distributed Generation (DDG) and Supply System from conventional sources for Villages/ Habitations where grid supply is not cost effective and where Ministry of Non-Conventional Energy Sources would not be providing electricity through their programme(s). Balance 10% will be loan assistance on soft terms by REC. The scheme, inter-alia, provides for funding of electrification of all un-electrified Below Poverty Line (BPL) households with 100% capital subsidy. The scheme aims at electrifying all un-electrified villages over a period of four years and provide access to electricity to all rural households. There is a provision of subsidy of Rs. 540 crore for DDG during XI Plan period which is included in capital subsidy of Rs crore available for RGGVY in XI Plan period. The guidelines on DDG has been finalized and an order in this regard has been issued on Status Of Rural Electrification Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) All the States except Delhi & Gov have signed Agreements under RGGVY. CPSUs are implementing the scheme in 139 districts. 235 Projects were taken up for implementation during X Plan. Till , 327 projects have been sanctioned for implementation during Phase-I of XI Plan. Since April, 2005, till , the cumulative achievement is electrification of 61,360 un-electrified villages, intensive electrification of 85,501 already electrified villages and release of connections to 60,04,334 BPL households. The year-wise electrification of villages is at Annexure-I. In ,12,056 un-eletrified villages have been electrified, 36,477 already electrified villages have been intensively electrified and connections to 30,84,788 BPL households have been provided. Franchisees are in place/operation in 16 States namely, Uttar Pradesh, Uttarakhand, Karnataka, West Bengal, Assam, Nagaland, Haryana, Orissa, Madhya Pradesh, Andhra Pradesh, Rajasthan, Bihar, Gujarat, Punjab, Maharashtra and Chhattisgarh covering 98,648 villages. Revenue collection and consumer services have improved in the States where franchisees are in operation. The Ministry in collaboration with REC is organizing training for franchisees and C&D employees. All the 27 States participating in RGGVY have notified constitution of District Committees to, inter-alia, monitor the implementation of RGGVY & all States have notified rural areas to take the advantage of the exemptions provided in the Act for setting up Decentralized Distributed Generation. 28

35 Year Wise Village Electrification Annexure-I SI. YEARS Number of Villages REMARKS electrified th Plan Total th Plan Total RGGVY RGGVY RGGVY 10th Plan Total RGGVY RGGVY NOTE: Definition of village electrification was changed in

36 CHAPTER - 9 ENERGY CONSERVATION Energy is an important input required for economic and social development. India ranks the world s sixth largest energy consumer accounting for about 3.5% of the world s total annual energy consumption, but, per capita consumption of energy is very low at 631kwh as compared to world consumption of 2873 kwh which needs to be increased to meet the goals of economic and social development. The installed power generation capacity has grown 94 times since independence and the total installed capacity of power generation in India has reached 1,40,627 MW (as on ). However, there is still a peak demand shortage of around 14.8% and an energy deficit of 8.4% in the country. To mitigate shortage of energy in general and electricity in particular, in addition to augmenting the capacity of energy supply, its efficient use and conservation is also essential. Keeping this in view and to maintain GDP growth of 8 to 10%, the government has initiated several policy measures to accelerate power generation and promote energy efficiency to meet power requirements. The conventional sources of energy such as Thermal, Hydro and Nuclear are major sources of generation of electricity in India. Conventional sources of energy are valuable, because their formation takes millions of years whether it is oil or coal. Moreover, the conventional sources of energy are exhaustible. Energy prices may rise in the long run to reflect the relative scarcity and high cost of exploration and extraction. Hence, all initiation has to be taken to optimal use of the available resources so that they can continue for a long duration. Energy Efficiency improvements not only reduce the energy consumed per unit products and services made available but also improve energy security of the country to ensure sustained availability of energy resources at affordable price. In order to institutionalize energy conservation efforts in the country, the Government has passed the Energy Conservation Act in 2001, and established the Bureau of Energy Efficiency, (BEE) under Ministry of Power, Government of India, on 1st March 2002 to promote the efficient use of energy and its conservation. Ministry of Power, through BEE, has initiated a number of energy efficiency initiatives through a range of measures, including the launch of Energy Conservation Building Code for large, new commercial buildings; the launch of energy labelling scheme for appliances; the initiation of process for the development of energy consumption norms for industrial sub sectors and an annual examination to certify energy auditors and energy managers. However, the effectiveness of this and other measures ultimately depends on their adoption by all energy users and consequently on their awareness of the energy savings opportunities around them. Keeping this in view, Ministry of Power has initiated National Campaign on Energy Conservation and National Painting Competition on Energy Conservation for school children. Schemes for Promoting Energy Efficiency in India during XI Plan 1. Bachat Lamp Yojana (BLY) Scheme Ministry of Power, through Bureau of Energy Efficiency (BEE), is coordinating voluntary efforts under this scheme to provide high-quality CFLs to domestic consumers for Rs. 15 per lamp, i.e., at a rate comparable to that of incandescent bulbs. This would remove the barrier of high CFL price (which is currently Rs. 80 to 100 per lamp) which is constraining its penetration into households. It targets replacement of about 400 million incandescent bulbs in use in the country, leading to a possible reduction of about 6,000 MW of electricity demand, and a reduction of about 24 million tones of CO 2 emissions every year. The price reduction would be achieved by utilizing the Clean Development Mechanism (CDM) of the Kyoto Protocol through which the CFL suppliers would earn Certified Emissions Reductions (CERs) on the basis of the CO 2 emissions reductions that would occur because of the low electricity consumption of CFLs compared to incandescent bulbs. Hon ble Minister of Power announced the scheme on 28th May, 2007 during the Chief Ministers Conference on Power chaired by Hon ble Prime Minister. The scheme was launched on 25th February, 2009 by Hon ble Minister of Power, Shri. Sushilkumar Shinde. Tripartite Agreements (TPA) between BEE, the Distribution Company and the CFL supplier are being entered into and five TPAs have been signed till : (a) BEE, EPDCL, Andhra Pradesh and M/s. OSRAM India Ltd. (b) BEE, UHBVNL, Haryana and M/s. OSRAM India Ltd. (c) BEE, UPCL, Uttarakhand and M/s. Intersuez. (d) BEE, JVVNL, Rajasthan and M/s. Banyan Innovations. (e) BEE, APCPDCL, Andhra Pradesh and M/s. IRG. The pilot project in Vizag, Andhra Pradesh has been registered with the EB and the distribution of lamps has commenced. In addition, 13 states have initiated the process by selecting a BEE empanelled CFL supplier. BEE has, after due consultation with the industry and lighting associations, have empanelled a list of CFL suppliers, including CFL 30

37 manufacturers, based on their respective capacities and understanding of their CDM approach. The expected number of CFLs that will be installed in these 13 projects is around 6.47 crores. To facilitate the project, BEE is preparing an umbrella CDM project under the recently-announced Programme-of- Activities (PoA) of the CDM Executive Board. The PoA would define key CDM requirements, including the stakeholder comments, project baseline, additionality, and methodology, and the monitoring protocol through which the CO 2 -emissions reductions would be assessed. The PoA approach reduces time and transaction costs for replicability since these key requirements will not need to be addressed by area-specific projects within the PoA. BEE will undertake monitoring under the approved methodology in all project areas. EFC has sanctioned a scheme for monitoring of the programme at an estimated cost of Rs crores during the XI plan. Targeted Avoided Capacity during XI plan: 4000 MW Avoided Investment in generation, transmission and distribution: Rs. 40,000 crores 2. Standards and Labeling The Bureau of Energy Efficiency, Ministry of Power has developed a scheme for energy efficiency labelling of equipment, under clause (a-d) of section 14 of the Energy Conservation Act, 2001 by the Central Government. Central Government, under the Energy Conservation Act, 2001 has powers to: Direct display of labels on specified appliances or equipment (14.d) Enforce minimum efficiency standards by prohibiting manufacture, sale, and import of products not meeting the minimum standards (14.c) The scheme initiated as Standards and labeling of appliances and equipments. Under this program, the end use equipments and appliances are tested and certified as compliant to energy saving norms and standards by self certification by the manufacturers and based on their performance, they are given STAR rating, ranging from 1 to 5 in the increasing order of energy efficiency. The scheme has been developed in collaboration with all the stakeholders, and aims at providing information on energy performance so that consumers can make informed decisions while purchasing appliances. Other than the objective of informed choices to consumers, this program also leads to energy saving, and thereby the cost saving potential of the marketed household and other equipment. Along-with the fact that this would impact the energy savings in the medium and long run, it will also position domestic industry to compete in such markets where norms for energy efficiency are mandatory. The scheme was launched by the Hon ble Minister of Power in May, Energy labels have been put on the following Shri Sushilkumar Shinde Minister of Power and Secretary Power with Children on National Energy Conservation Day 31

38 Shri Sushilkumar Shinde Minister of Power and DG, BEE, Secretary Power & Chairperson CEA with Prize winning Children equipments and appliances under program implementation on voluntary basis with 5 new equipments which are launched. 1. Frost Free (No-Frost) Refrigerator 2. Tubular Florescent Lamps 3. Room Air-conditioners 4. Direct Cool Refrigerator 5. Distribution Transformers 6. Induction Motors 7. Agricultural Pump Sets 8. Ceiling Fans 9. LPG 10. Electric Water Heaters 11. Colour Television The mandatory gazette notification has been issued in January 2009 for the following products : 1. Frost Free Refrigerators 2. Distribution Transformers 3. Room Air Conditioner 4. Tubular Fluorescent Lamps The scheme is being expanded to cover more equipments/ appliances and also to make it into a mandatory scheme. Education and awareness about labels, ensuring credibility of the scheme by check and challenge testing; monitoring and evaluation of the impact of the scheme are the major aims and objectives of the scheme. A joint campaign for consumer awareness of BEE star rating was launched by Ministry of Power in association with Ministry of Consumer Affairs under the Jago Grahak Jago scheme of the Ministry of Consumer Affairs. The voluntary industry participation in the scheme for AC is 80%, Refrigerator is 80% and for Tubular Fluorescent lamp is 90%. From the Standards and Labeling program, BEE has estimated the savings potential, which has also been verified. The impact on energy savings for has been MW and this has been contributed through the process of buying more efficient products in TFLs, refrigerator and AC segments. The 1st phase of check testing by the Independent Agency Monitoring and Evaluation has been completed for ACs and TFLs (life test under progress) and for Refrigerators about 70% of the sample size has been verified for compliance. The Scheme with an expenditure of crores during the XI plan has been approved. 32

39 The schemes targets at an avoided capacity of 3000MW during the XI plan. The other products which are under the discussion for formulation of relevant energy performance standards are as follows: a. Set top Boxes b. Washing Machines c. Compact Fluorescent Lamps d. Computer Monitors e. Passenger Vehicles Car (4 wheeler) The above mentioned products are under the phase of situational analysis and other technical discussions. The standards and labeling program for vehicles is currently under dispute even though the legal opinion from Ministry of Law was received in favour of BEE/MoP. A committee has been constituted under the directive of Prime Minister s office. BEE has also finalized and started the online e-filing for registration and approval of star labeling for the manufacturers, this would help in a system automated tracking system and increase in the productivity. 3. Energy Conservation Building Codes The Energy Conservation Building Code (ECBC) was launched by the Govt. of India on 27th May This code is intended for new commercial buildings having a connected load of more than 500 kw and has initially been launched on voluntary basis. The ECBC defines norms of energy performance and takes into consideration the climatic regions of the country where the building is located. The major components of the building which are being addressed through the code are: (a) Envelope (walls, roofs, windows) (b) Lighting systems (c) HVAC System (d) Water heating and pumping system (e) Electrical distribution system. Under section 14 (p) of the Energy Conservation Act,2001, Central Government has powers to prescribe ECBC for commercial buildings having a connected load of 500 KW or building complex for efficient use of energy and its conservation. The state governments have the flexibility to modify ECBC to suit local or regional needs. The central Government is also empowered to include such commercial buildings in the list of designated consumers under section 14(e). The state governments are empowered, under section 15(a) to amend the ECBC to suit regional / local climatic conditions and notify ECBC in the states. Energy Conservation Building Code (ECBC) addresses the five climatic zones of the country (hot & dry, warm & humid, composite, temperate and cold). In order to ensure administration of ECBC implementation in a uniform and consistent manner all over the country, the BEE has set up a ECBC Programme Committee (EPC) by pooling in the expertise of all stake holders, including State Designated Agencies, Industry etc. This committee facilitates the development of ECBC compliant building design, credible implementation of a few demonstration projects in the public sector, making arrangements for evaluation of the progress and outcomes by creating appropriate institutional mechanism. BEE has come out with the revised edition of ECBC incorporating the comments received from stakeholders and organizations like CPWD, MES etc. With a view to build adequate technical capacity and develop building procedures and tools to effectively implement ECBC - a panel of 37 ECBC expert architects has been shortlisted. The shortlisted Architects would act as resource persons and are the Brand Ambassadors for the ECBC. These expert architects support the implementation of ECBC by providing the following services to architects who are designing ECBC compliant buildings: Energy efficient design of commercial buildings so that they are designed in a manner that reduces the use of energy without affecting the building function, the comfort, health, or the productivity of the occupants and with appropriate regard for economic considerations. Ensure compliance processes are made simple, clear, and easy to use. Training design professionals which would result in modifications of standard specifications to correspond with the code requirements which would ensure fewer revisions in specifications prior to building permit issuance. Ensure efficient availability of both technical expertise and compliant material. Launch a sustained awareness campaign that will also help design some demonstration projects. Through these empanelled architects, assistance is being provided to Ministry of Health and Family Welfare in helping them to develop the six AIIMs like institutions under the Pradhan Mantri Sampuran Swastiya Yojana (PMSSY) scheme as ECBC compliant buildings. Assistance is also being provided to various Central/State Governments and public sector organizations in developing ECBC compliant buildings. As part of capacity building exercise, BEE is conducting training workshops covering all aspects of the code to sensitize the various government departments/ professionals on the requirements of the code. In addition, Tip sheets on building envelopes, lighting, HVAC 33

40 and Building Simulation have been developed and launched. The capacity building of architects and engineers has also been taken up by developing curricula with Architectural/ Engineering colleges through training the next generation of Architects and Engineers to enable them to design energy efficient and sustainable buildings. Quality reference material in the form of Building Technology Atlas Series containing up-to- date reference work on energy efficiency buildings and technical information and practical case studies covering Lighting, Heating, Appliances and Drive Power has been distributed to 18 Engineering colleges and 13 Non Profit organizations. The Ministry of Environment and Forests under its Environment Impact Assessment (EIA) has made ECBC compliance mandatory while obtaining the environmental clearance for large construction projects. In addition, Bureau of Energy Efficiency is assisting the Architecture Department/ PWD, Government of Haryana through the empanelled expert architects for developing energy efficient building plans for their Mini Secretariat at Nuh (Administrative Block and court complex), SDO Civil Complex (Admin Block), Community/Primary Health Centre, Industrial Training Institute (ITI). These proto-type building plans would be used for replication across the state. Energy Efficiency in Existing Buildings - There is a huge potential of energy savings in existing buildings. Energy Audit studies conducted in several office buildings, hotels and hospitals indicate energy saving potential of 23% to 46% in end uses such as lighting, cooling, ventilation, refrigeration etc. The potential is largely untapped, partly due to lack of effective delivery mechanisms for energy efficiency. Performance Contracting through Energy Service Companies is an innovative delivery mechanism for overcoming the barriers faced by energy users. The overall energy efficiency investment market size under ESCO system of performance contract in India has been estimated by the ADB Study project team at Rs 140 bn (Rs crores) and has the potential to save about 54 billion units of electricity annually. A scheme for implementing energy efficiency in existing central government buildings through the ESCO mode was initiated by BEE in 2 phases which included prestigious buildings like Rashtrapati Bhawan, Prime Minister s office, Shram Shakti Bhawan etc. In order to promote energy efficiency in existing buildings, a scheme to promote Energy Efficiency in Government Buildings has been developed by BEE. The approved scheme provides for funding of Investment Grade Energy Audits (IGEA) being arranged by the Central Government Agencies/ State Designated Agencies. The coverage of government buildings includes large buildings which can have a demonstrative impact like large municipal or local body building, hospitals etc. In order to promote implementation of energy efficiency measures through Performance Contracting route, BEE undertook a process of shortlisting of ESCOs through an open invitation and evaluation process. These shortlisted ESCOs were accredited by SEBI accredited agencies of CRISIL and ICRA. The accreditation exercise was based on approved methodology which involved an assessment of Business Risk (Track record and Market position), Organizational set up and financial capability of the organizations. 35 ESCOs have been accredited. This exercise is expected to aid ESCOs to be able to successfully bid for energy services projects and to arrange financing for the execution of such projects. Hon ble President of India launched an initiative ROSHINI which aims at converting the President s Estate into a model township which would be eco- friendly, green and plastic free. BEE has been entrusted the task of taking up energy efficiency measures for the entire President s Estate excluding the Rashtrapati Bhawan. Under the MoU between PTC and BEE, the task to carry out the implementation of energy efficiency under the ESCO route has been taken up by PTC through their partners M/s DSCL Energy Services Limited. BEE has also entered into an MoU with Employees State Insurance Corporation(ESIC) for enhancing the energy efficiency of ESIC owned/operated hospitals/commercial buildings/residential colonies all over the country. In order to create a market pull for Energy Efficiency activities in the commercial buildings, the Bureau of Energy Efficiency has now developed a Star Rating Programme for office buildings which is based on actual performance of the building, in terms of specific energy usage (in kwh/ sq m/year). This Programme would rate office buildings on a 1-5 star scale, with 5-Star labelled buildings being the most energy efficient. Initially, the programme targets the 3 climatic zones namely composite, warm and humid and hot dry for air-conditioned and non- air-conditioned office buildings. Commercial building energy benchmarking initiative has been taken up to identify a roadmap for developing a framework for creating a national database. The goal is to establish a framework to standardize energy data collection, baseline setting for typical commercial buildings, energy performance target setting and monitoring, and use the information for identifying exemplary buildings and buildings in need of intervention to improve energy efficiency. This information can help the users and other stakeholders including builders, architects and code enforcing agencies to evaluate building s energy efficiency and track improvements compared to other buildings. A scheme for implementation of Energy Conservation Building Code (ECBC) and improving energy efficiency in existing buildings has been approved by the government at a total cost of Rs crores during the 11th Plan period. 34

41 Shri Sushilkumar Shinde Minister of Power, giving away the prize on National Energy Conservation Day, 14th Dec, 2008 Target of Avoided Capacity during XI plan: 500 MW 4 Agricultural (Ag DSM) and Municipal (Mu DSM) Demand Side Management scheme Ag DSM promises immense opportunity in reducing the overall power consumption, improving efficiencies of ground water extraction and reducing the subsidy burden of the states without sacrificing the service obligation to this sector. It also presents a promising prospect of targeting subsidy to the beneficiary farmer. In terms of electricity saved, given that most of the pilot projects as well as other studies project potential savings of 45-50% by mere replacement of inefficient pumps, the overall electricity savings (from 20 million pumps) is estimated at 62.1 billion units annually. A successful implementation model must address all the above variables and include all stakeholders. Provision of adequate incentive to farmers, given that they do not largely pay for electricity, is one of the major constraints in implementation of the scheme. Mu DSM also assumes significance given that the Municipalities consume 10% of energy overall and the cost input of energy is as high as 60% of the costs incurred by the municipalities. Energy costs constitute up to % of an Indian municipality's total cost of pumping water to its residents. This financial constraint, coupled with inadequate or antiquated infrastructure and the lack of adequate managerial and technical capacities, greatly limits the ability of municipalities to improve water services while allowing inefficient usage of electricity. The electricity bills of the municipalities accounts for a significant part of its expenditure, given that an estimated 10% of electricity is consumed for urban water pumping. The cash starved municipalities are, therefore, unable to meet the service delivery standards that are fast growing urban area demands. The fact that efficient water delivery systems can translate into measurable energy savings due to reduced pumping requirements and improved performance is vastly unknown to most of the municipal authorities. Absence of enabling state level policies or regulatory interventions to implement water and energy efficiency measures to improve service and reduce costs, while on the other hand, reduce power consumption of the utility does not help matters. The scheme has been approved at a total cost of Rs crores. The scheme targets an avoided capacity of 2000 MW during the XI plan. Based on an approved framework, following 5 states were selected for implementation of Agriculture DSM in the phase-i of the scheme. 35

42 a) Maharashtra b) Gujarat c) Rajasthan d) Haryana e) Punjab The work on other 4 states is likely to commence shortly. 6 States viz Haryana, Punjab, Madhya Pradesh, Chhattisgarh, Uttarakhand and Andhra Pradesh have been identified based on the report and grading system developed by BEE. The situation analysis for Municipal DSM has been completed and the rank of States and cities has been prepared. Bids to select implementation agencies in 36 ULBs have been used and the work is likely to be awarded shortly. The balance 139 ULBs will be taken by in the next 3 months. 5. Energy Efficiency in Small and Medium Enterprises (SMEs) Scheme The proposal seeks to promote Energy Efficiency in SMEs during the XI plan. Many energy-intensive SMEs clusters located in various states of the country have large potential for energy savings. In quantitative terms, there is little reliable information and data available with respect to their energy consumption and energy saving opportunities. Bureau of Energy Efficiency (BEE), in consultation with Designated State Agencies, will initiate diagnostic studies in 25 SME clusters in the country, including a cluster in North East Region, and develop cluster specific energy efficiency manuals/booklets, and other documents to enhance energy conservation in SMEs. The scheme seeks to provide comprehensive energy efficiency solutions to 25 SME clusters by: (a) Investment grade energy audits (bankable DPRs) for about 10 units in each of the 25 clusters. b) Template for DPR preparation for the balance units in clusters, given their similarities. c) Adequate provision of expertise for the local service providers to help reach out to the units. d) Availability of financing by capacity building of banking personnel in matters like project appraisal of performance contracting. The cost estimated during the XI plan for the above activities is around Rs crores. The scheme targets an avoided capacity of 500 MW during the XI plan. The SFC proposal seeking to promote Energy Efficiency in SMEs during the XI plan was recommended by the committee in its meeting and has since been approved. The scheme seeks to provide comprehensive energy efficiency solutions to 25 SME clusters by: (a) Conducting energy audits in these clusters (b) Preparing DPRs from energy audit studies (c) Enhancing the capacities of service providers in each cluster area (d) Provision of financing for such bankable DPRs (e) Awareness and outreach Work for 7 clusters have already commenced. Bids for remaining 18 clusters will be taken out in May, 2009 and work to be awarded by end of June, Strengthening Institutional Capacity of SDAs Scheme State Designated Agencies (SDAs) are statutory bodies set up by states to implement energy conservation measures at state level. SDAs are expected to play three major roles namely: As a Development Agency As a Facilitator As a Regulator/Enforcing body The main emphasis of the scheme is to build capacity necessary to enable them to discharge regulatory, facilitative and enforcement functions under the Act, given that the institutional capacity is limited - both in terms of human and infrastructure resources. Most of the states have notified SDAs in the last 2 years. 30 States have designated their agencies so far. The scheme seeks to develop and implement Energy Conservation Action Plan (ECAP) based on a uniform template evolved for taking measures necessary to build institutional and human capacity, enabling the SDAs to implement energy efficiency programmes and undertake evaluation and monitoring of the energy conservation activities implemented in the state. ECAPs are being developed for various states and till now 15 states have already completed them. The scheme with an estimated cost of around Rs crores has been approved. The deliverables of the scheme is to enhance institutional capacity of the SDAs so that they have a common understanding of the issues related to energy conservation activities and are able to implement the Energy Conservation Act in their respective states. No physical target is possible under this programme but the SDAs are expected to have a minimum understanding of nuances of energy conservation and efficiency like implementing performance contracting projects, ECBC, IT based monitoring and evaluation, energy audits in designated industries, etc. Phased 19 point action plan evolved for implementation by all SDAs. Energy Conservation Action Teams (ECATs) are being encouraged in the states for coordinated approach to energy conservation and efficiency. For the financial year , 20 SDAs have submitted their Action Plan based on the 19 deliverables and an 36

43 fee for services, etc) which can augment the fund. The scheme is expected to commence in Institutional Strengthening of BEE The proposed scheme seeks to provide resources allocated during the XI plan for: (a) Setting up of Energy Conservation Information Center (ECIC) christened BEEnet as a web enabled online data collection and collation system. The project will provide the following facilitation functions that BEE/ SDAs are accredited with: Prize Winning Painting by Anwesha Paul, West Bengal, 2008 amount to the tune of Rs lakhs has been disbursed to them as 1st instalment (equivalent to 70% of the sanctioned amount). During the financial year , 21 SDAs have submitted the identified list of 331 Govt. buildings for carrying out Investment Grade Audit and funds to the tune of Rs lakhs is disbursed. The SDAs have been provided with a list of 35 technically qualified ESCOs so that they can award the work of IGA to one of the ESCOs seeking financial bids only. A detailed scope of work for carrying out the IGA has been prepared and sent to the SDAs in this regard. 23 proposals from the SDAs have been obtained for carrying out high impact demonstration projects in the area of street lighting and water pumping system. For 3 such projects LOA (Letter of Award) for preparation of Detail Project Report (DPR) to the consultants is completed. A panel of technical consultant has been prepared after a competitive bidding process to enable the development of such projects. 5 regional meetings of all the SDAs were held at Chennai, Delhi, Gandhinagar, Guwahati and Bhubaneswar to review the progress made in the activities of the SDAs 7. Contribution to State Energy Conservation Fund (SECF) Scheme This scheme is intended to be submitted in FY after the above scheme for institutional strengthening takes off in states. SECF is a statutory requirement and is one of the key elements of the ECAP. A provision of Rs. 140 crores has been kept for this scheme. The risk factors and deliverables are similar to that of the above scheme. The scheme will provide contribution to SECF after it is notified by states and will be pari-passu with the contribution made by the states. The effort will be to create a pool of financially sustainable activities for SDAs (like training programmes, Web based online system that facilitates seamless filing of returns by the Designated Consumers as required under section 14 (k) and 14 (l) of the Energy Conservation Act. The notification of the same has been issued by Government in March, 2007 and the returns will be required to be filed before the State Designated Agencies from FY (b) Infrastructure and resource augmentation of BEE; and (c) Support to finance R& D in energy efficiency in IITs and Policy research from ASCI, IIP, etc. 9. National Energy Conservation Awards, 2008 Ministry of Power had instituted National Energy Conservation Awards to motivate industrial units to conserve and use energy efficiency. This award scheme has been extended to building sector and zonal railways. Indian industrial units, office buildings, hotels, zonal railways, state designated agencies and municipalities, who are leading the way in becoming more energy efficient, were awarded by Ministry of Power in a function organized on the occasion of National Energy Conservation Day, the 14th December 2008 at New Delhi. These annual awards recognize innovation and achievements in energy conservation by the Industries; buildings, railways, state designated agencies and municipalities and raise awareness that energy conservation plays a big part in India s response to reducing global warming through energy savings. Sixty seven (67) units in the industries, office buildings, hotels, zonal railways, state designated agencies and municipalities have been Prize Winning Painting by AnamikaChakraborty, Jharkhand,

44 6.96 lakhs students of 4th & 5th standards of the 35 States and Union Territories participated in the School Level Painting Competition, which was quite encouraging. This competition is aimed at motivating the children towards energy conservation and offers them a chance to explore their creativity. The expressive paintings of the children reflected their interest in the energy conservation activities and their concern about climate change. Verifiable Savings: 1. The Standards and Labelling (S&L) Programme have resulted in electricity saving of Million units, equivalent to avoided capacity generation of MW. Prize Winning Painting by YeerinaDebnath, West Bengal, 2008 selected from 368 nominations received for the National Energy Conservation Awards This year, 1 Excellence Award, 2 Top Rank Award, 19 First Prizes, 22 Second Prizes and 23 Certificates of Merit have been awarded. The Award Scheme has motivated the participating units to undertake serious efforts in saving energy. The 368 participating units of 2008 Awards have collectively invested Rs crores in energy conservation measures and achieved a monetary savings of Rs crores every year, implying a very short payback period of 16 months only; once again providing the fact that energy conservation is a least cost option. The participating units have also saved 2216 million kwh of electrical energy, which is equivalent to the energy generated from a 325 MW thermal power station at a PLF of 0.78%. In other words, these participating units have avoided the installation of power generating capacity equivalent to 325 MW thermal power station in , which would otherwise have been required to meet the power demand of these units. In the last 10 years of Award scheme of the period , the participating industrial units have collectively saved Rs 8884 crores per year and the investment made on energy efficiency projects was recovered back in 18 months. In energy terms, 9662 MW of electrical power, 18.3 lakhs kilolitre of oil, lakhs metric tonnes of coal and 20.7 billion cubic metre of gas was saved, through the energy conservation measures of the participating units. 10. Painting Competition on Energy Conservation, 2008 Ministry of Power has undertaken National Campaign on Energy Conservation Under this campaign, a painting competition on energy conservation 2008 at School, State level and National level was conducted. The painting competition is first conducted at the School level and two best paintings from the participating school are included in the concerned State/UT level Competition. First two winners from each State and UTs are invited to participate at the National level competition. This year Schools and 2. The National Energy Conservation Award Programme has resulted in electricity saving of Million units, equivalent to avoided capacity generation of 236 MW. Apart from this, these programmes were able to reduce 2,205,623 MTOE of thermal energy. 3. The Energy Conservation & Demand Side Management (DSM) programmes at state level have resulted in electricity saving of 693 Million units, equivalent to avoided capacity generation of MW. Apart from this, these programmes were able to reduce MTOE of thermal energy. Potential Savings: (a) The ECBC programme has stimulated construction of commercial buildings with a potential saving of about 316 MW on completion. (b) Bachat Lamp Yojana (BLY) is to be submitted to the CDM Executive Board (CDM- EB), Bonn this year for approval after the first two pilots, which are currently under consideration of CDM-EB, are registered. By the end of the year, about projects are expected to be rolled out in various states thereby adding an estimated 10 million CFLs in the household sector. The programme coverage will be increased to all the states in the year The scheme targets to replace 400 million incandescent bulbs leading to a possible reduction of 6000 MW and a reduction of about 24 million tonnes of CO2 emissions. (c) The Agriculture and Municipal DSM programme as well as the SME programme will be taken up this year. 350 investment grade audits (IGAs) in Agriculture and Municipal sector and about 600 IGAs in SME sector will be completed in 2 years time. In the year , IGAs with identified savings equivalent to about 1000 MW of avoided thermal capacity will be prepared. 38

45 CHAPTER - 10 RENOVATION AND MODERNISATION OF THERMAL POWER STATIONS Renovation & modernization (R&M) is seen as a costeffective option to maximise generation from the existing thermal power stations and better asset management. R&M, as a structured programme, was first taken up in September 1984 for execution during the Seventh Plan. The programme had since been continuing with varying degree of success. In the initial phase up to 9th Plan period there had been significant improvement in plant performance resulting in increased generation, however, there has been limited success thereafter. 10 Plan Programme During the 10th Plan period life extension works on 11 units (985 MW) at an approximate cost of Rs. 948 crore were completed. There was additional generation of 2000 MU per year from these units. In addition, R&M works on 57 units (14270MW) to sustain / improve their performance at an estimated cost of Rs crores were taken up and works on 14 units (2460 MVv) were completed during the 10lh plan. The R&M works on remaining units are planned to be completed during 11lh Plan. R&M Programme during the 11* Plan During the 11th Plan, 53 numbers (7318 MW) out of which 33 (4524 MW) in state sector and 20 (2794 MW) in central sector have been identified for taking up life extension programme. Similarly for R&M works, a total number of 76 units (18965 MW) out of which 27 units (6015 MW) in state sector and 49 units (12950 MW) in central sector have been identified for implementation during the 11th Plan. During the 11th Plan period upto March 2009, life extension works on Ukai-unit 1 (120 MW), Panipat unit-1 (110 MW), Obra unit-2 (40 MW) and partial LE works on unit-6 (94 MW) of Obra TPS & unit 5 (60 MW) of Harduaganj TPS have been completed. Similarly, R&M works on 18 units (4350 MW) in state sector have been completed so far. Works on another 5 units in state sector (465 MW) and 40 units in central sector (38 units of NTPC and 2 units of DVC) of total capacity 9980 MW are in progress. Improvement of Performance of existing Thermal Power Stations (PIE programme) "Partnership in Excellence (PIE)' was launched by Ministry of Power in August, 2005 for an initial period of 2 years (i.e. upto Aug. 2007) to improve performance of such stations which were running at PLF much below 60%. CEA identified thermal stations which were running at PEF below 60%. NTPC was chosen as partner in 16 thermal power stations and Tata Power was selected in case of Dhuvaran TPS. Four stations decided to take self improvement measures. The PIE programme has been concluded in all identified thermal power stations by June There have been improvement in most of the stations with significant improvement in the following : S. No. Name of the Capacity under PLF before PIE PLF after PIE plant / utility PIE Programme Programme Programme (Apr-Sep 2005) ( ) 1 Bokaro 'B / DVC 630 MW 45.5 % 70.9 % 2 Chandrapura / DVC 390 MW 58.8 % 69.4 % 3 Rajghat/IPGCL 135 MW 42.5 % 75.5 % 4 Ennore / TNEB 280 MW 22.0 % 59.3 % 5 Dhuvaran / GSECL 280 MW 27.0 % 71.0 % 6 Kutch lignite / GSECL 215 MW 28.3 % 72.9 % Future vision for R&M Programme So far, R&M activities were confined to old, small size units to sustain their operation, improve plant availability and extend their operating life. However, such units are highly inefficient and beset with various operational problems. It is aimed at to gradually decommission such' units. 39

46 A view of Power plant under maintenance Today, 200/210/250MW and 500 MW units (57237 MW) consisting of 75 % of coal/lignite based installed capacity form the backbone of Indian Power sector. A large number of 200/210 MW machines and few 500 MW machines are in operation for years. Such machines through efficiency integrated R&M provide a good opportunity for performance enhancement through technology intensive R&M. Plant specific energy audit studies and technoeconomic analysis are proposed to be carried out for defining & implementation of efficiency integrated R&M/LE scheme. At present, three power stations viz., Bokaro 'B' TPS (3x210MW), Kolaghat TPS (3x210MW) and Nasik TPS Unit-3 (1x210MW) have been identified for efficiency integrated R&M study through bilateral cooperation with German Government. Contract has been awarded for preparation of Feasibility Study for all the above units. Further, few units such as Bandel TPS Unit-5 (21 OMW), Koradi TPS Unit-1 (210MW) and Panipat TPS (2xli0MW) have also been identified for efficiency integrated R&M through World Bank assistance. NIT for main plant package for Bandel TPS Unit -5 has been floated. 40

47 CHAPTER - 11 PRIVATE SECTOR PARTICIPATION IN POWER SECTOR 1.0 POLICY ON PRIVATE SECTOR: Ministry of Power recognizes the fact that private investors have important role to play in the power sector growth map of India. The stipulation under section 63 of Electricity Act 2003 has provided impetus to the participation of private sector in Generation and Transmission. Provision of open access and tariff framework under Tariff Policy has been put in place to create an enabling environment for the private investors. 2.0 RESPONSE FROM THE PRIVATE SECTOR: The private investors have responded to the policy initiatives very positively. As a result, out of MW envisaged under private sector during 11th Plan, MW is actively progressing and 1000 MW is already added to the energy basket of the country. In addition, a large number of IPPs have applied for coal linkage totaling to nearly 1,87,000 MW. They are in simultaneous coordination with Sates for acquiring land, water and other inputs for setting up these projects. Many utilities in States like Haryana, Punjab, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Maharashtra, Karnataka etc. have proposed to set up thermal power projects through tariff based competitive bidding (Case-II) route. 3.0 MAJOR POLICY INITIATIVES TO STREAMLINE THE PROCESS OF PROJECT DEVELOPMENT: To accelerate capacity addition several policy initiatives have been undertaken by Ministry of Power. Some of the prominent policies which have boosted the private player s confidence in the sector are: National Electricity Policy. Ultra Mega Power Project Policy. Mega Power Policy. Tariff Policy. 3.1 Captive Power Plants: The Electricity Act, 2003 does away with the requirement of approval / clearance of any authority for setting up a captive generating plant. The new law (as amended) also ensures non-discriminatory open access for transmission of electricity generated from a captive generating plant to the destination of its use, subject to availability of transmission capacity. The surcharge and cross subsidies are being progressively reduced in a manner as may be specified by the State Regulatory Commission. Any person setting up a captive power plant can also establish and maintain dedicated transmission lines. 3.2 Open access to transmission: Under the new Electricity Act, 2003, non-discriminatory open access in Transmission has been envisaged. The move is intended to encourage competition amongst generators and distributors and trading in power from surplus to deficit regions. 3.3 Generating Company permitted to distribute electricity in Rural Areas: Section 14 of the Electricity Act, 2003 allows any generator of electricity to distribute electricity in a rural area without the requirement of any license, subject to compliance with the measures as may be specified by the Central Electricity Authority under Section 53. Under the provisions of Section 4 of the Act, the Central Government, in consultation with the State Governments, has prepared and notified a National Policy, facilitating stand alone systems (including those based on renewable sources of energy and other non-conventional sources of energy) for rural areas. 3.4 Automatic approval for FDI: Automatic approval (RBI route) for 100% foreign equity is permitted in generation, transmission, and distribution and trading in power sector without any upper ceiling on the quantum of investment. 3.5 Facilitating Financial Closure: It is expected that with the reforms and restructuring of the power sector, the confidence of investors in power sector will improve and the precondition of payment security for investment funding would not be an impediment to attract investments. Encouraged with the reforms measures being undertaken, the financial institutions have shown renewed interest in investing in the power sector for viable projects being set up by promoters with credible background. An Inter-Institutional Group (IIG) comprising senior representatives from the financial institutions and the Ministry of Power has been set up for facilitating early financial closure of private power projects. This Group has been focusing closely on projects which could achieve early financial closure. 41

48 CHAPTER - 12 INTERNATIONAL COOPERATION CO-OPERATION WITH NEIGHBOURING COUNTRIES IN HYDRO POWER Development of water resources of the common rivers of India and neighbouring countries of Nepal, Bhutan and Myanmar for mutual benefits has been under consideration with these countries. There is regular exchange of electric power between India and the neighbouring countries for the supply of surplus power and meeting power requirements in the border areas. The details of cooperation with neighbouring countries are described below: NEPAL India has been assisting Nepal in the development of its hydro power potential and four HE schemes viz. Pokhra (1 MW), Trisuli (21 MW) Western Gandak (15 MW) and Devighat (14.1 MW) have been implemented in the past with financial and technical assistance from Govt. of India. Three major multipurpose projects in Nepal viz. Pancheshwar, Saptakosi and Karnali are presently under discussion at various levels as mutual benefits projects. A Joint Committee on Water Resources (JCWR) headed by Water Resources Secretaries of India and Nepal has been constituted to act as an umbrella Committee to ensure implementation of existing agreements, understanding and also to oversee work of all technical and expert level Committees related with Water Resources. The Joint Ministerial Commission on Water Resources that is headed by the Minister of Water Resources of the 2 countries addresses bilateral co-operation between the 2 countries on Water Resources. In the 3rd meeting of the JCWR it was agreed to constitute Joint Standing Technical Committee (JSTC) to coordinate all existing committees and sub-committees. During 3rd Meeting of JCWR held on , Pancheshwar was identified as a Priority Project and both sides agreed to set up Pancheshwar Development Authority (PDA) for development, execution and operation of Pancheshwar Multipurpose Project. The Term of Reference of the PDA is being finalized. Investigations have been carried out in respect of Pancheshwar Multi-purpose Project (5600 MW) by the two countries in their respective territories. Draft DPR has been prepared by Indian side which is to be mutually agreed by the two countries. India has offered financial and technical assistance for investigation and preparation of DPR of Saptakosi High Dam Multipurpose project and Sun Kosi Storage cum Diversion Scheme. A Joint Project Office has been established on in Biratnagar, Nepal for taking up field investigations and studies for preparation of Joint DPR. In addition, India has offered assistance for carrying out field investigations and studies for preparation of DPR for Naumure Multi-purpose Project and a team of officers from MOWR/ CEA/ CWC & U.P. Irrigation Deptt. visited Nepal in this regard. Joint Technical Expert Groups have been constituted for the above projects for guidance for carrying out investigations and preparation of Detailed Project Reports (DPRs). Government of Nepal has through a process of competitive bidding awarded Arun-III Hydropower Project (400 MW) to Sutlej Jal Vidyut Nigam Ltd. (SJVNL) on build-ownoperate-transfer basis for a period of 30 years and a Memorandum of Understanding (MoU), in this regard, have been signed between Government of Nepal and SJVNL on Project office has since been opened by SJVNL at Kathmandu and a G&D site has also been established w.e.f Nov., Government of Nepal has also awarded Upper Karnali Hydropower Project to a consortium consisting of GMR Group companies on build-own-operate-transfer basis and a Memorandum of Understanding (MoU) has been signed in this regard in Kathmandu on January 24, MYANMAR As per the MoU signed on between Department of Hydropower Implementation (DHPI), Govt. of Union of Myanmar (GoUM) & NHPC Limited, NHPC carried out the study and appraisal of the Detailed Feasibility Reports of 1200 MW Tamanthi HE Project (report prepared by M/s Colenco Power Engineering Ltd; Switzerland) & 642 MW Shwezaye HE Project (report prepared by M/s Kansai Electric Co. Japan) vis-a-vis master plan of Chindwin River Basin. Accordingly, NHPC has submitted Project Review Reports suggesting need for carrying out additional studies/ investigations for preparation of DPRs for these projects to MEA/MoP and the GoUM on BHUTAN In Bhutan, Chukha HE Project (336 MW) implemented with Indian Financial and technical assistance and operating in an excellent manner is a shining example of cooperation between the two countries for mutual benefits. Kurichhu HE Project (60 MW) in Eastern Bhutan has also been implemented with Indian financial and technical assistance. Another project viz. Tala HE Project (1020 MW) has also 42

49 CSLF task force meeting on Financial issues been commissioned in by Tala Hydro-Electric Project Authority (THPA) comprising of Indian and Bhutanese Officers & Engineers. Design & Engineering consultancy for the project in respect of electro-mechanical and civil works had been rendered by Central Electricity Authority (CEA), Central Water Commission (CWC) and Water & Power Consultancy Services (WAPCOS). The project had been funded by India through grant and loan. PTC has been designated as nodal agency for transfer of Power from Tala Project to India. Surplus power from these projects is being imported by India. An agreement has been signed between GoI and RGoB in July 07 for execution of the Punatsangchhu-I (1200 MW) project with Indian financial and technical assistance. The project is presently under execution. An umbrella agreement for long-term cooperation for developing hydro electric projects and associated transmission system was signed. The agreement envisaged the development and import by India of not less than 5000 MW by A protocol to 2006 Agreement has been signed in 2009 which envisages import of MW of power from Bhutan by the year Accordingly, DPRs of 9 projects (10426 MW) in Bhutan are under formulation by CPSUs. TAJIKISTAN NHPC has undertaken the work of Renovation, modernization and Uprating of Verzob Hydro Power Plant I (2x3.67 MW) in Tajikistan. In this regard, a tripartite agreement has been signed between Ministry of External Affairs (MEA), NHPC Ltd. and Bharat Heavy Electrical Ltd (BHEL) on in MEA. The total cost of the assignment is Rs Crore, wherein NHPC has to execute the Civil & HM works for an amount of Rs Crore. The work is going as per schedule. MULTILATERAL COOPERATION Carbon Sequestration Leadership Forum (CSLF) In June 2003, India signed, along with Australia, Brazil, Columbia, Italy, Japan, Mexico, Norway, China, Russia, U.K. and EC, Carbon Sequestration Leadership Forum (CSLF) Charter which aims at facilitating the development of improved cost effective technologies for the separation and capture of carbon dioxide for its transport and its long term safe storage. India is represented on the Policy Group of CSLF by Secretary (power) and Secretary, Department of Science and Technology. Ministry of Power has been coordinating all the activities relating to CSLF in India. A meeting of the Task Force of Policy Group of CSLF Group on Financial Issues was held on 2nd and 3rd December, 2008 at New Delhi. The Task Force deliberated on the Issues of Innovative financing mechanism for R&D activities in CCS in India. India has taken a stand in the CSLF that developed countries need to finance the CSLF related R&D activities in developing countries 43

50 Shri Anil Razdan, Secretary (Power), welcoming the delegates in CSLF meeting India-Brazil South Africa Dialogue (IBSA): This forum was set up in June First meeting of the Working Group on energy was held in Brazil in March Main areas of cooperation are: (i) Bio-fuels and renewable energy (ii) Experience sharing in areas of energy efficiency (iii) CDM projects and evolution of regulatory structure. IBSA Summit was held on October, 2008 in New Delhi. The IBSA Working Group on Energy is now led by Ministry of New & Renewable Energy. The meeting of the Working Group on Energy was held on September, 2008 in New Delhi. Asia Pacific Partnership on Clean Development and Climate (APP): This initiative was launched in January The partners are US, Australia, India, China, Japan and South Korea. Canada had joined recently. This Ministry coordinates the Task Force on Power Generation and Transmission. Activities undertaken during the year 2008 An Indian delegation participated in US Peer Review of Coal Fired Generation at Wisconsin, USA from 28th April, to 2nd May, 2008 A delegation led by Chairman, CERC visited Australia to attend the Energy Regulatory and Market Development Forum meeting on June, 2008 in Sydney. An Indian delegation participated in APP Brown Coal (lignite) best practices workshop on June, 2008 in Melbourne, Australia. An Indian delegation participated in a Study Tour to USA for introducing Best Practices for Efficiency Improvement in Power Plants from 28/8/2009 for two weeks. An Indian delegation visited San Francisco to participate in a programme for exchange of technical information concerning electricity generation using wind power from 2nd March to 6th March, REGIONAL COOPERATION: South Asian Association for Regional Co-operation (SAARC): One of the SAARC Working Groups is on Energy. As a follow-up to the decisions taken in the Fourth Working Group meeting held in Islamabad, Pakistan, the following activities have been undertaken during the year. The meeting of the Expert Group on Energy Ring was held 44

51 on at New Delhi. The meeting deliberated on the concept paper circulated earlier by the SAARC Secretariat and finalized the same. A meeting to evolve the common template on commercial and technical aspects of electricity grid interconnections among the SAARC Member Countries was held on 4/12/ 2008 in New Delhi. A detailed questionnaire was circulated in the Member countries seeking further information to finalize the common template. The Governing Body Meeting of SAARC Energy Centre was held on November, 2008 at Islamabad. The meeting was attended by the representative of Ministry of Power. As decided in the meeting a Workshop on Energy Efficiency shall be organized by India in rd Meeting of SAARC Energy Ministers was held on January, 2009 in Colombo. The Indian delegation was led by Hon ble Minister of Power. The meeting reviewed the status of implementation of decisions of second meeting of the SAARC Energy Ministers. Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC): Energy cooperation has emerged as one of the important areas in this regional cooperation forum which consists of Bangladesh, Myanmar, Thailand, India, Nepal, Bhutan, Sri Lanka. On the invitation of Prime Minister, we hosted first BIMSTEC Energy Minister s Conference in New Delhi in October The conference also adopted a Plan of Action in addition to the Ministerial Declaration. A Workshop on BIMSTEC Energy Centre was held from January, 2006 in New Delhi to finalize the concept for proposed centre. A meeting of Senior Officials of BIMSTEC was held on August, 2008 in New Delhi to discuss preparation for BIMSTEC Summit in October, 2008 and to finalize the Memorandum of Agreement (MOA) for BIMSTEC Energy Centre. The meeting discussed about the proposed MOA of BIMSTEC Energy Centre. BIMSTEC Summit Meet was held in New Delhi on October, As per the plan of action BIMSTEC Energy Centre will be setup in India. A virtual BIMSTEC Energy Centre is already in operation at w.e.f. August, Indo-US Cooperation: Under the India-US Energy dialogue, five working groups have been constituted. Out of these, Working Group on Power and Energy Efficiency is led by Ministry of Power from Indian side. The first meeting of the working group was held through video conferencing. The next meeting of working Group on Power & Energy Efficiency was held on in New Delhi. Both sides agreed to work in the areas of Clean Coal Power, IGCC Technology, Electric Power Distribution, Cooperation and Coordination in coal bed methane, exchange of best practices between Federal Energy Management Programme (FEMP) and Indian ESCOS and public building users. Under the electric power distribution, DRUM programme is successfully completed by providing training to 17,000 power utilities personnel and immense benefit has been gained from the programme. The programme shall continue up to Under Building and Energy Efficiency ESCOS Conference, US Aid Eco.III Project is contemplating as an initiative to exchange best practices from FEMP, USA to Indian ESCOS and Building and Public Building Users. FutureGen Project India s commitment to FutureGen Project to continue, as the project is being revived by the new US Administration. Indo-EU Cooperation: At the 5th India-EU Summit held in November, 04 India and EU agreed to set up a Joint Energy Panel with a view to coordinate their actions in the field of energy and all related fuel chains. The Panel is co-chaired by the Foreign Secretary from India side. The energy panel met for the first time in Brussels. The panel had decided to set up 3 Working Groups. (i) Clean and Clean Coal conversion Technologies (ii) Energy efficiency and renewable energies (iii) Fusion energy including India s participation in ITER The last meeting of working Group on Energy Efficiency and Renewable Energy was held in January, 2007 at Brussels. During the meeting participating experts made presentations on energy efficiency of end use appliances, Co-generation and Bio-fuels. The following areas of mutual interest were identified for further enhanced work: Energy efficiency, notably labeling; co-generation also in view of district cooling; bio-fuels first generation. Nodal persons have been identified for this purpose. Enhanced EU-India cooperation including industry cooperation was envisaged by both the Chairs. At the request of Ministry of Coal, Ministry of Power is dealing with Working Group on Clean Coal Technology. The first meeting of Indo-EU Working Group on Clean Technology was held in January, 2008 at New Delhi. The Working Group agreed to take up further cooperation activities in following two areas: i) A joint study on feasibility of introducing advanced supercritical technology in India. ii) Participation by India in ZEP demonstration plant(s). The 2nd Meeting of Indo-EU Working Group on Clean Coal 45

52 Technology (CCT) was held on 20/6/2008 at Brussels. An Indian delegation led by Member Planning, CEA participated in the meeting from the Indian side. The 3rd meeting of Indo-EU Working Group was held on 26/11/2008 at New Delhi. The meeting was followed by a Workshop on CCT on November, Delegation from EU attended the meeting along with representatives of Government of India, academic institutions, industries. Indo-German Cooperation India and Germany launched energy dialogue in April, The year has seen an increasing interest on both sides to enhance cooperation. Two batches of engineers from CEA/ State utilities have been deputed to Germany for training in power plant efficiency improvement. The second meeting of the Indo-German Energy Forum was held in New Delhi in December, A number of issues for bilateral cooperation were identified and three ad-hoc sub groups, namely on, power plant efficiency, CDM projects in Energy and Renewables have been set up. Indo-Japan Energy Dialogue The Indo-Japan Energy Dialogue to promote cooperation in energy sector was set up. The Deputy Chairman, Planning Commission is the co-chair from the Indian side. The Ministry of Power is heading the Working Groups on Energy Efficiency and Power Generation and Electricity. BILATERAL COOPERATION: Cooperation with Neighbouring Countries: Existing cooperation with Nepal and Bhutan for construction of hydropower projects with Indian expertise has further been strengthened. Tala HEP in Bhutan has been commissioned. Further, an Agreement has been signed on between the Government of India and the punatsangchhu-i hydroelectric project (1095 MW) in Bhutan. The project is expected to be completed in about seven years. PGCIL has completed 132 KV single circuit transmission line under Government of India assistance from Deothang in Bhutan to Rangia in Assam, India. This shall provide adequate transmission arrangement for reliable operation of Kurichhu HEP in Bhutan. Further, construction of 33KV indoor substations at Yurmoo, Trongsa & Bumthang along with 33 KV line from Yurmoo-Trongsa in Bhutan is also being undertaken by PGCIL. PGCIL has completed a 220 KV transmission line in Afghanistan from Kabul to Pul-e-Khumri and a substation in Kabul to enable import of power from Uzbekistan. The project has been funded by Government of India. PGCIL has undertaken pre-feasibility study for establishing transmission interconnection of India with Nepal, Bangladesh and Sri Lanka. NTPC is setting up a thermal power project in Sri Lanka and MOA was signed in the year 2006 to this effect. LIST OF ON-GOING EXTERNALLY AIDED POWER PROJECTS World Bank Power System Development Project III (PSDP-III) / PGCIL (USD 400 million) 4th PSDP / PGCIL (USD 1000 million) Rampur HEP / SJVNL (USD 400 million) ADB Assam Power Sector Development Project / ASEB (USD 100 million) Powergrid Transmission (Sector) Project III (USD 400 million) National Powergrid Development Investment Programme IV (USD 600 million) M.P. Power Sector Investment Programme / MPPTCL and E.W.C. Discoms (USD 600 million) Uttarakhand Power Investment Programme / UVNL and PTCL (USD 300 million) Himachal Pradesh Clean Energy Development Programme / HPPCL (USD 800 million) JICA TPP / WBPDCL (JY million) R&M of Umiam HEP / MeSEB (JY 1964 million) North Karapura TPP/NTPC (JY15916 million) Rural Electrification Programme (M.P., A.P. and Maharashtra) REC (JY20629 million) EHV Transmission System in Haryana / REC (JY20902 million) Transmission System Modernization in Hyderabad / APTRANSCO (JY million) Bangalore Distribution Upgradation Project / BESCOM (JY10643 million) Maharashtra EHV Transmission System Project / MSETCL (JY million) KfW (Germany) 2*800 MW Krishnapatnam TPP / APPDCL (Euro 281 million) PFC Energy Investment Programme / PFC / UJVNL (Euro million) High Voltage Distribution System (HVDS) in A.P. / REC (Euro 70 million) High Voltage Distribution System (HVDS) in Haryana/ REC (Euro 70 million) Pare HEP / NEEPCO (Euro 80 million) 46

53 CHAPTER - 13 POWER DEVELOPMENT ACTIVITIES IN NORTH-EASTERN REGION The status of on-going projects which are likely to yield benefits during 11th plan are as under: NEEPCO Projects (Hydro) : (ii) Kameng HEP (4x150 = 600 MW), Arunachal Pradesh Kameng H.E. Project with an installed capacity of 4x150MW, envisages utilisation of flows of Bichom & Tenga rivers ( both tributaries of river Kameng ) at a head of about 500m available in an U - bend of the river down stream of confluence of river Bichom with Kameng. The project would afford firm power generation of MW with annual energy benefits of 3592 Gwh in a 90% dependable year. The TEC was accorded by CEA on The approved CCEA was accorded on The approved cost of the project is Rs crores (at March 2004 price level). The environmental and forest clearance was accorded to the project on The project envisages the construction of 2 nos. Diversion Dams i.e. Bichom Dam of 75 m high, long and Tenga Dam 25 m high, 103 m long respectively. A Head Race Tunnel of km long, 6.7 m dia. A Surge Tank 25m dia and 70 m high with 3.75m dia restricted orifice. The finalized length of HPT is m (Gross length of HPT liner = m), the same is partly underground and partly overground. Valvehouse surface type having 2 nos. butterfly valves. A surface Power House with installed capacity of 4x150=600 MW having four vertical Francis Turbines working at rated Head of 504 m. Switchyard 132 kv and 400 kv double & transfer bus arrangement. All the civil, HM & EM works have been awarded. Major civil works are under progress. An expenditure of Rs crores has been incurred up to 31st March,2009.The project is scheduled to be commissioned by However, due to heavy flood on Oct, 2008, which caused damages A View of Dam DS Nathpa 47

54 A view of TRT Outfall in Tanga Dam & HRT works, project commissioning may get extended beyond 11th Plan. NHPC Projects(Hydro): (i) Subansari Lower (8x250=2000MW), Arunachal Pradesh, NHPC:- The project was techno-economically cleared by CEA on CCEA clearance was accorded on for an estimated cost of Rs crores with the schedule commissioning of the project in September The design energy is Gwh. The project is situated in the districts Lower Subansiri/ Dhemaji in Arunachal Pradesh / Assam on river Subansiri. Major civil works have been awarded to M/s BGS-SGS- Soma Joint Venture and Larsen & Toubro Ltd. Chennai respectively on E&M works has been awarded to Consortium of M/s Alstom Power Hydraulique, France and Alstom Projects India Ltd. New Delhi on Hydro-Mechanical Package awarded to Texmaco on The Project envisages construction of a 116m high concrete gravity dam, 8 nos. head race tunnels of 9.5 m dia with length varying from m, 8 no. Horse shoe/ circular steel lined pressure shaft of dia m length m, surface power House having Francis turbine for 8 units of 250 MW each. River diverted on Civil works of Dam, Power House & HRT is in progress. Due to back hill slope failure of Power House, the slope stabilization is under progress. The earlier designed 8nos Surge Shaft have been modified to 8nos inclined Surge Tunnels. The work of Surge Tunnels is yet to be taken up. The project is critical to give benefits in 11th Plan. NTPC Projects (Thermal) (i) Bongaigaon TPS (3x250MW) This project is being taken up by NTPC at Salkati, Kokarjhar District of Assam. MOEF clearance has been obtained and coal linkage for the project has been accorded by Ministry of Coal. Order of Main Plant Package has been placed on BHEL on 05/02/08.The latest approved cost of the project is Rs Crores. Order for Main Plant Civil / CW system civil works, water treatment Plant, supply & erection of CW system, DM Plant, Chimney, LT Switch Gear, 400 KV Switch yard and fire protection system have been placed. 48

55 Actual/ Anticipated dates for various milestones are as under : Unit #I Unit #II Unit #III Sl No. Name of Work Actual/ Ant. Date Actual/ Ant. Date Actual/ Ant. Date A Boiler Side 1 Commencement of SG Erection FEB 09 (A) JUN 09 OCT 09 2 Boiler Drum Lifting JUN 09 OCT 09 FEB 10 3 Boiler Hydraulic Test MAR 10 JULY 10 NOV 10 4 Boiler Light up AUG 10 DEC 10 APR 11 5 Steam blowing completion SEP 10 JAN 11 MAY 11 B Turbine Side 1 Commencement of TG Erection NOV 09 MAR 10 JUL 10 2 T.G. Boxup AUG 10 DEC 10 APR 11 3 Oil Flushing Completion SEP 10 JAN 11 MAY 11 4 T.G. Rolling OCT 10 FEB 11 JUN 11 5 Synchronisation NOV 10 MAR 11 JULY 11 Joint Venture Projects (Thermal) (i) TPC Tripura CCPP ( 2x MW) : This project is a joint venture of ONGC, Govt. of Tripura & Infrastructure leasing and finance services (IL&FS) at Palatana of Udaipur district of Tripura. MOEF and other clearance for the project have been obtained. as sale and purchase agreement between ONGC and OTPC has been executed. Zero date of Project is The boundary wall work started on 15th October Main Plant order has been placed on BHEL on 23/06/2008. Total estimated cost of Project is Rs crores. The BOP has been awarded to BHEL under Trunky EPC contract. The anticipated date of commissioning schedule of the project is as under : Block I : January 2012 Block II : April 2012 State Sector Projects: (i) Myntdu (2x42 MW), Meghalaya. Myntdu H.E. Project (2x42 MW) is under execution by Meghalaya State Electricity Board. CEA clearance was accorded to this project on at an estimated cost of Rs crores (completion cost at 01/99 PL) with the commissioning target by 10/2006. The Administrative approval was accorded by State Government on Forest clearance for the project was accorded on while Environment clearance was accorded on The work was started w.e.f All major civil & HM works and E&M works have already been awarded. Presently, civil works are in advanced stages of completion. An expenditure of Rs crores has been incurred up to 28th February, Latest commissioning schedule of units is December, 2009 & February, 2010.Third unit (1x42 MW) Myntdu extension is also to programmed to be commissioned during 11th Plan. (ii) New Umtru(2x20=40), Meghalaya New Umtru H.E. Project (2x20 MW) is under execution by Meghalaya State Electricity Board. Estimated cost of the project is Rs Cr. Civil works have been awarded in December, 2007 but due to land acquisition problem, works could be started in December, 2008 only. Order for HM works has been placed in January, Letter of Intent for E&M works has been issued in February, An expenditure of Rs.5.43 crores has been incurred up to 30th September, Project is likely to be commissioned by the end of 11th plan i.e. during (iii) Lakwa Waste Heat Recovery Project ( Steam Turbine MW) : It is being implemented by Assam Power Generating Company Limited in the Sibsagar District of Assam state. EPC contract was placed on M/S BHEL on 20/ 03/2006. EPC contract for Raw Water intake pump house and Raw Water piping from River Desang to Lakawa TPS has been signed on 16/07/07 with M/s Santosh Sahewalla, Sivsagar. Boiler Tubes Module & Drum Erection completed for HRSG-II. HRSG-I: Insulation Work completed. 39/59 modules erected. Whole C&I package has been supplied at site. 49

56 Private Projects : (i) Chuzachen Hydro-Electric Project ( 2x49.5 = 99 MW) in Sikkim The project was cleared by the State Government on Environment Clearance and Forest Clearance was obtained on 9/9/05 & 9/1/06 respectively. Financial closure has been achieved on 14/03/07. The estimated cost of the project is Rs crores and is under execution by M/s Gati Infrastructure Limited. All major works i.e. civil, Electro-mechanical & Hydromechanical have been awarded. Civil works awarded to M/s SEW RRASAD (Joint Venture) on 9/3/2006. E&M works awarded to M/s Alstome Projects (I) Ltd. on 26/2/06. Civil works of dam, HRT, Power house etc. are in progress. The project is scheduled to be commissioned in year (ii) Teesta Stage-III (6x200 MW), Sikkim. Project is under execution in private sector by M/s Eleventh Plan Projects: Teesta Urja Ltd. State clearance to the project was accorded on 18th July, TEC from CEA was accorded on Environment & Forest clearance were given on and respectively. LOA for turn-key execution of the project has been placed on the EPC consortium led by M/s Navayuga Engineering Company, Hyderabad on and contract agreement signed in The electro-mechanical works have been awarded to consortium led by M/s VA tech Hydro and the contract has been signed on Financial closure achieved on 14th August, Latest cost of the project is Rs crores. Private land acquisition has been completed and infrastructure works almost completed. 9.4 Km out of 26 Km tunneling has been completed. 1.2 Km out of 13.8 Km HRT excavation has been completed. River diversion is planned in October, An expenditure of Rs crores has been incurred up to 31st December, 2008.Latest commissioning schedule of units is from August, 2011 to January, Sl. 11 th Plan Addition No. Name of States No. of Schemes Hydro (MW) No. of Schemes Thermal (MW) Total 1 Assam Manipur Meghalaya Mizoram Arunachal Pradesh Nagaland Tripura Total (NER) Sikkim Total (NER Sikkim) Twelveth Plan Projects: 42 No. of Hydro Power Projects with installed capacity of MW have been identified which are likely to yield benefits during 12th plan as per the details given below: Sl. 12 th Plan Addition No. Name of States No. of Schemes Hydro (MW) No. of Schemes Thermal (MW) Total 1 Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Tripura TOTAL(NER) Sikkim TOTAL (NER Sikkim) 50

57 Vision 2020 The Hon ble Prime Minister has released Vision 2020 document in respect of the North East. In pursuance of achieving the objectives mentioned in the document in respect of Power Sector an Action Plan was sought by Ministry of DoNER. Such an Action Plan was forwarded to DoNER. The Action Plan seeks to achieve various objectives laid down in the Vision 2020 document e.g.: Prioritizing inter state transmission with the region; concerted attention by States, DoNER and NEC to fund sub transmission system; Orientation of Government s Accelerated Power Development Reforms Programme (APDRP) towards implementation in NER. Consideration by the Government of a Centrally Sponsored Scheme to support inter State Transmission and Sub Transmission Projects; Managing the Transmission and Distribution System to ensure that the power availability to the consumer is expanded exponentially; Evacuation through the narrow window available in the Siliguri Corridor; Sorting out outstanding issues related to the 2000 MW Lower Subansiri Project, development of infrastructure specially roads on priority basis; Reciprocal arrangement for Eastern Grid to feed NER as and when required and ensuring availability of thermal source of energy including Coal, Shale and Natural Gas in NER. In order to pursue these objectives, a thematic group under the convener ship of Joint Secretary (Hydro), Ministry of Power has been constituted. The thematic group has made presentation of the Action Plan on various objectives listed in the Vision document before the plenary sessions of the NEC held on and Several power sector issues such as transmission, sub-transmission, RGGVY, R&R, O&M etc, are involved in the instant matter. POWER DEVELOPMENT ACTIVITIES IN NORTH EAST REGION NEEPCO PROJECTS: PROJECTS UNDER CONSTRUCTION: Sl. No. Name of the Project State Installed Capacity (MW) 1. Kameng H.E. Project Arunachal Pradesh Pare H.E. Project Arunachal Pradesh 110 TOTAL 710 FUTURE PROJECTS: Sl. No. Name of the Project State Installed Capacity (MW) 1. Kameng-I H.E. Project Arunachal Pradesh Ranganadi H.E. Project, St-II Arunachal Pradesh Mawphu H.E. Project Meghalaya Tipaimukh H.E. Project Manipur Tripura Gas Based Power Project Tripura Garo Hills Coal Based Thermal Power Project Meghalaya West Khasi Hills Coal Based Thermal Meghalaya 240 Power Project 8. Margherita Coal Based Thermal Power Project Assam 250 TOTAL CAPACITY ADDITION DURING 11TH PLAN: Sl. No. Name of the Project Installed Capacity of the Projects likely to come up during 11th Plan 1. Tripura Gas Based Power Project Kameng H.E. Project, Arunachal Pradesh * TOTAL

58 Tripura Gas Based Power Project, Tripura: The PIB has recommended the project for CCEA on It is proposed for commissioning during 11th Plan subject to CCEA clearance within September Notice Inviting ICB for the EPC contract to execute the project on full turnkey basis was opened on and presently under evaluation. * Kameng H.E. Project, Arunachal Pradesh: Investment approval was accorded to this project on (at approved estimated cost of Rs Crs. including IDC of Rs Crs. at March 2004 PL) with 1st year & levellised Rs.1.48 & Rs.1.23 per unit respectively. The project was originally scheduled to be commissioned during which was later revised to March, All major works are in progress. So far 5.95 KM tunnelling has been completed out of KM. The proposed Revised Cost Estimate of the Project at Sep 2008 PL has been worked out as Rs Crs. (including IDC of Rs Crs.). The progress has suffered due to poor geology, lack of stable construction power and roads and major flash floods. The first unit of the project is now proposed to be commissioned by December, CAPACITY ADDITION DURING 12TH PLAN: Sl. No. Name of the Project Installed Capacity Remarks 1. Pare H.E. Project, Arunachal Pradesh 110 ** 2. Tipaimukh H.E. Project, Manipur 1500 The project will be placed for CCEA clearance upon receipt of Forest clearance and finalization of Net Present Value of forest land. Project can be commissioned within 4months after CCEA clearance. ** Pare H.E. Project (110 MW), Arunachal Pradesh: The CCEA clearance for implementation of the Project (110 MW) was accorded on 4th December 2008 at an approved estimated cost of Rs crores, IDC and Finance Charges of Rs crores at June 2007 Price Level. The Project is scheduled to be commissioned in 44 months from zero date. The power from the project would be utilized within the North Eastern Region itself, using the existing 132 kv transmission system of Ranganadi Hydro Electric Project to meet the needs of Arunachal Pradesh, Assam and other North Eastern Region States. Tenders for award Proposed projects slated to be commissioned by 12th Plan and under active discussion with the concerned State Governments. of works/ contracts of Design and Review Consultancy works, Package-I (Civil and Hydro-Mechanical works) and Package-II (Electro-Mechanical works) have been completed. However, due to high price quoted by the bidders, as compared to the provisions of the sanctioned Cost Estimate of the Project, the bids for both the Packages have been cancelled and initiation of new Bids through 4(four) Packages viz. Civil Works, HM Works, EM Works & Switch Yard and Transformer works have been taken up. Tender for Package-I (civil works) have already been floated on Sl. No. Name of the Project Installed Capacity Remarks 1. Mawphu H.E. Project, Meghalaya 90 Signing of MoA with Govt. of Meghalaya could not be concluded on the issue of non payment of upfront premium. 2. Ranganadi H.E. Project, St-II, 130 Signing of MoA with Govt. of Arunachal Pradesh Arunachal Pradesh could not be concluded on the issue of non payment of upfront premium. 3. Garo Hills Coal Based Thermal Power 500 Signing of MoA with Govt. of Project, Meghalaya Arunachal Pradesh could not be concluded on the issue of non payment of upfront premium. 4. West Khasi Hills Coal Based 240 Signing of MoA with Govt. of Thermal Power Project, Meghalaya Arunachal Pradesh could not be concluded on the issue of non payment of upfront premium. 52

59 5. Margherita Coal Based Thermal Power 250 The project is being implemented as Project, Assam a Joint Venture between NEEPCO & Assam Power Generation Corporation Ltd. The draft Joint Venture agreement with the provision to have 100% of the generated power from the project to the State of Assam was submitted to this Ministry. NEEPCO was suggested by Ministry of Power to revise the draft Joint Venture Agreement in consonance with the Central Formula for power allocation. NEEPCO have taken up the matter with the Govt. of Assam. A response from the Assam Govt. is awaited. 53

60 CHAPTER - 14 IMPLEMENTATION OF OFFICIAL LANGUAGE Ministry of Power Ministry of Power, its attached and subordinate offices and public sector enterprises, Autonomous Bodies, Boards, Societies and Institutions under administrative control of the Ministry of Power continued their efforts for ensuring effective implementation of the Official Language Policy of the Government and in day to day activities of the Ministry promoted the progressive development of Hindi. Full compliance of Section 3(3) of Official Language Act and rule 5 of Official Language rules, 1976 in the Ministry and offices under the administrative control of the Ministry was ensured. According to the target, two meetings of the Hindi Advisory Committee were held on 29th March, 2008 and 07th February, 2009 under the Chairmanship of Hon'ble Minister Shri Sushilkumar Shinde. Hon'ble Members of the Committee highly appreciated the works done by Ministry and said that in comparison to other Ministries, Ministry of Power had done relatively better work to propagate Hindi. In pursuance of the decision taken for preparing a consolidated power glossary in the meeting of Hindi Advisory Committee held on 22nd July, 2006 under the Chairmanship of Hon'ble Minister of Power, first phase of the work undertaken to prepare a glossary of Power sector(english-hindi) was completed in year with the coordination of the offices under the administrative control of the Ministry. First draft copy of the glossary was presented to Hon'ble Minister in the meeting of Hindi Advisory Committee held on 29th March, Hon'ble Minister had directed to complete this work during the year The work was completed in a planned manner. To complete this work, coordination meetings of offices under the administrative control of the Ministry were held on July, 2008 in NHPC Ltd., Faridabad, July, 2008 in Satluj Jal Vidyut Nigam Ltd., New Delhi, August, 2008 in Powergrid Corporation of India Ltd., Gurgaon, October, 2008 in Central Electricity Authority, New Delhi, November, 2008 in Damodar Valley Corporation, Delhi, November, 2008 in NPTI, Faridabad, December, 2008 in NTPC Ltd., Dadri(U.P.), January, 2009 in Power Finance Corporation Ltd., New Delhi and January, 2009 in North Eastern Electric Power Corporation Ltd., New Delhi. According to the directions of Hon'ble Minister, the work relating to the glossary was completed in the year A meeting of Hindi Advisory Committee was held on 7th February, 2009 under the Chairmanship of Hon'ble Minister. Final draft copy of the glossary was presented to Hon'ble Minister and Hon'ble Members for their perusal in the meeting. A copy of the glossary has been forwarded to Scientific and Technical Glossary Commission for its approval, on 3rd February, Ministry and offices under the administrative control of the Ministry, are putting in many efforts to encourage progressive use of Official Language. A Scheme is in vogue for awarding a Vidyut Rajbhasha Shield for promoting the progressive use of Hindi through healthy competition under which the offices situated in region of "A", "B", "C" doing well in Hindi, are awarded Shield. To encourage writing of books originally in Hindi on the subjects related to Power Sector, "Kendriya Pustak Lekhan Puraskar Yojna", is in place. To encourage more and more writing of technical books in Hindi under this scheme and to get best books on the technical subject, the amount of first prize has been increased from Rs. 50,000/- to Rs 60,000/-, second prize from Rs. 30,000/- to Rs. 40,000/ and third prize from Rs. 20,000/- to Rs. 25,000/-. A consolation prize of Rs. 10,000/- has also been kept in the scheme. Along. with the cash award, appreciation letter is also given under the scheme. This scheme is in operation since 01 January, To make more and more use of Hindi in administrative works, an appeal was issued by the Hon'ble Minister on the occasion of Hindi Diwas. In compliance with the Official Language Policy, Hindi Pakhwara was celebrated from 15th September, 2008 to 28th September, During this period, competitions were organized in Hindi Essay, noting, drafting, technical glossary, Hindi poetry, Hindi debate, Hindi typing etc. for the officers and employees of the Ministry. Officers and staff of the Ministry participated in these competitions with great enthusiasm. Successful competitors were given certificates and cash prizes. During the year, new initiatives have been made for promotion of Hindi using the scientific tool for the officials those are from the Non-Hindi speaking areas/category. In this sequence with the assistance of IIT Kharagpur, a 'Hindi Laboratory' has been established at Damodar Valley Corporation. The unique feature of the Hindi Lab is that with the use of Audio and Video tools the officials are trained on the use of proper Hindi. After the proper training and practice on Audio and Video tools in Hindi Lab in the areas of reading, writing and speaking, the officials trained become empowered to deliver, lectures in Hindi. In the Hindi Lab, a group of five officials can be trained at a time. Thus 54

61 use of scientific tools and speech therapy helps the official's to overcome the barrier in proper communication. Thus the true spirit of promoting the Hindi is being practiced in the Ministry. This type of initiative is an unique experiment being adopted for the first time in the Government of India. A comprehensive inspection programme has been prepared to review the progressive use of Hindi in the attached and subordinate offices, Boards, organizations and public sector undertakings under the administrative control of the Ministry. 15 Offices were inspected and necessary directions were issued to remove the shortcomings found during the inspection. Officers of the Ministry also participated in the inspection programmes being done by the Committee of Parliament on Official Language. 14 Offices have been notified under the rule. 10(4) of the Official Language Rules, As per the targets fixed by the Department of Official Language, meetings of Official Language Implementation Committee of the Ministry were organized regularly on 30 April, 2008, 22 July, 2008, 13 October, 2008 and 06 January, Immediate actions were taken in regard to the important decisions taken in these meetings i.e. organizing Hindi workshops, conferences, Seminars, recruitment against the vacant posts of Hindi, bilingual advertisements in newspapers and conducting of refresher course in Corporation/undertakings. CEA All out efforts are being made to enhance the usage of Hindi in official work in CEA. All incentive schemes sponsored by the Deptt. of Official Language are in operation in CEA. In addition, a Roving Shield is awarded to the Division/Section/Unit who does maximum work in Hindi throughout the year. During the year, Rajbhasha Shields were awarded to 10 Divisions/Sections where maximum correspondence has been made in Hindi with Regions A & B. Apart from above, CEA has introduced a Cash Award Scheme namely Kendriya Vidyut Pustak Lekhan Puraskar Yojna on All India basis to promote original book writing in Hindi from the calendar year Under this scheme, prize money is increased in pursuance of the Ministry of power's direction to First Prize - Rs. 60,000/-, (B) Second Prize - Rs.40,000/- (C) Third Prize - Rs. 25,000/- and one consolation prize of Rs.10,000/- only. During the year, four sub-offices of CEA i.e. in Calcutta, Banglore, Mumbai and Shillong were inspected by the officers of CEA to assess the usage of Hindi in official work. During this year, Parliament Committee has inspected three offices, namely CEA, and two sub-offices of CEA i.e. WRPC, Mumbai and NRPC, New Delhi. Official Language Implementation Committee s quarterly meetings were held regularly. To create interest in Hindi, the Hindi Books were regularly purchased for library of CEA as per the target prescribed by the Official Language department. During the year, one Hindi Computer Training Programme was organized in coordination with NPTI, Faridabad, in which about 25 employees had been trained in working on computers and five workshops on Hindi were also organized in which about 105 employees had participated. Officers and employees were regularly nominated for Hindi Language, Hindi Typing and Hindi Stenography training conducted under Hindi Teaching Scheme. All the typists are trained. In stenography, out of 153 employees, 124 are trained and 01 is under training and 28 are still to be trained. In Hindi Language, all officers/employees are trained. Newly recruited officers/employees are being asked about their educational qualification in which information about their Hindi qualification level is being collected. At present two employees are require to be sent for Hindi Teaching Scheme by the Hindi Training Institute, Rajbhasha Vibhag. NTPC Ltd. Several steps were taken for the propagation and implementation of Official Language Hindi in the offices of the Corporation. The progress of the usage of Hindi in its Rihand, Vindhyachal, Singrauli, Talcher-Kaniha, Mumbai, Secunderabad, Loharinagpala, Badarpur, Kolkata, Chennai offices was inspected and proper suggestions were given to the Heads of the Offices in this regard. Meetings of Official Language Implementation Committee, were held on 20th March, 25th June, 26th Sept., 17th Dec and 25th March 2009, in which the implementation of Hindi in Badarpur, Kawas, Kolkata, Anta, Faridabad, NCR Headquarter and Talcher Kaniha projects alongwith its Corporate Office was reviewed thoroughly. NTPC has hosted the 27th and 28th meeting of Town Official Language Implementation Committee (PSUs), Delhi on 17th June 2008 & 26th Dec under the chairmanship of Shri R.S. Sharma, CMD, NTPC, in which the Chief Guest Dr. Pradeep Kumar, Secretary (Rajbhasha), Ministry of Home Affairs has given Awards to the winners of Hindi Magazine, Hindi competition & NARAKAS shields. Apart from this, regional Rajbhasha implementation review meetings were also conducted in National Capital Region, Western Region, Southern Region, Northern Region & Eastern Region. Various Hindi competitions were organized during Hindi fortnight from 1st to 15th September 2008 in the Corporate Office as well as in all projects of NTPC. On 15th September 2008 the Chief Guest of Hindi Diwas function, Dr. Prabhakar Shrotriya, Ex-Director, Bhartiya Jnanpith, awarded the winners of Hindi competitions. Hindi workshops were conducted for the employees of Operation, Environment, Ash Utilisation, Consultancy Wing, Research and Development, Materials, PE-Infrastructure, Quality Assurance, Energy Technology Centre, Human Resources, Corporate Contracts, Finance, Rehabilitation & 55

62 Resettlement in which renowned Hindi scholars inspired the participants to use Hindi in day-to-day official work. The Committee of Parliament on Official Language had visited its Southern Region HQ, Secunderabad on 6th Oct. 2008, Corporate Office on 13th Jan and Badarpur Thermal Power Station on 24th Jan for Rajbhasha inspection. NHPC Ltd. Implementation of Official Language Policy During the year, Implementation of Official language Act, rules were complied with in the Corporation. All efforts were made to increase the progressive use of Official Language policy of Government of India. As per directives of Government of India policy, Hindi Month was observed from 1st to 30th September, 2008 in Corporation. Various competitions, programmes were conducted and a Book exhibition was organised on this occasion. A large number of employees participated in these events. In order to review the progress of Implementation of Official Language in the Corporation, Committee of Parliament on Official Language conducted inspection of Corporate Office on 12th September, Hon ble members of the Committee of Parliament on Official Language appreciated its efforts. Annual magazine of Rajbhasha Rajbhasha Jyoti was also released on this occasion. Second sub-committee of Committee of Parliament on Official Language has also inspected its Region-III office, Kolkata on 7th April, A team of officers from Ministry of Power visited the Corporate Office, Liaison office Shimla, Dulhasti Power Station and Region-I office, Jammu. Quarterly meetings of Official Language Implementation Committee were held regularly in order to accelerate Implementation of Official Language in the Corporation. During the year, 17 Hindi workshops were organized in Corporate Office and 347 employees were trained in these workshops, to motivate them for doing their Official work in Hindi. 09 workshops were organized to impart Comprehensive training to work in Hindi on Computers. The senior officers at the level of Director/Executive Directors conducted Rajbhasha inspection in 10 Projects. Director (Finance) himself inspected Parbati Project and Regional Office-III, Kolkata and Tanakpur Power Station and necessary instructions were given to increase the use of Official Language. A Meeting of Hindi Slahakar Samiti of Ministry of Power was held at Udaipur on 7th Feb., During this meeting, 03 employees of its Corporation, received Letter of Appreciation from Hon ble Minister of Power, Shri Sushilkumar Shinde for their remarkable contribution in Shabdaawali Nirman. On the commencement of New Year, a grand Akhil Bhartiya Kavi Sammelan was organized on 09th January, 2009 to propagate Hindi language. 08 renowned poets recited their poems on this occasion and audience was very much impressed with their poems. During the year, classes were organised to impart training of Hindi language, Hindi typing and Hindi stenography to the employees. Second Tuesday of every month was observed as Hindi Diwas in the Corporatin. In order to increase Implimentation of Official Language, Rajabhasha Desk has been established. 'Aaj ka Shabda' and 'Aaj ka Vichar' is being written and displayed on computers and boards - regularly in the Corporation. NHPC received Sahastrabdi Rajbhasha Shield from Rashtriya Hindi Academy, Rupambara for its remarkable contribution in Official Language Implementation. This Shield was given to NHPC by Her Excellency, Governor of Himachal Pradesh Smt. Prabha Rao in a grand function held at Shimla. Annual Rajbhasha Magazine of Corporation, Rajbhasha Jyoti was awarded excellent magazine award on All India Level. Rajbhasha Shield (First prize) and letter of appreciation was given to NHPC by Hon ble Ministry of Power Shri Sushilkumar Shinde for doing excellenct work of Rajbhasha amongst all Power Sector Undertakings. Rajbhasha Shield (First prize) and Letter of Appreciation was given to NHPC by Town Official Language Implementation Committee, Faridabad also for doing excellent work during year amongst Undertakings / Corporations at Faridabad. In addition to this, 06 employees of NHPC got prizes for their excellent performance in competitions organized by Town Official Language Implementation Committee, Faridabad. Power Grid Corporation of India Ltd. POWERGRID, as a company, is sensitive towards its heritage, social and cultural concerns. In pursuance of Govt. of India s Rajbhasha policy to promote Indian languages and Rajbhasha Hindi, POWERGRID has made all efforts to integrate use of Hindi in its office works in all aspects of management in the corporation and at all levels. It has proved its commitment to ensure the implementation of Rajbhasha policy and to achieve the goal as laid out in the Rajbhasha Annual Plan. POWERGRID has made all efforts to increase the use of the official language and for its continued propagation, various activities like organising workshops; training, meetings, poetry session, culture activities, Publication of Hindi magazines/ papers and lectures from eminent personalities are regularly organized. More than 116 offices of POWERGRID have been notified to work in Hindi in Gazette of India. Hindi library of POWERGRID is the best libraries in Public Sector Units. All records about Hindi books & magazines are kept in computer 56

63 for easy access to employee of POWERGRID through internet. All computers of POWERGRID are bilingual & phonetic key boards are made available in all computers. For outstanding and noteworthy contributions in Hindi, number of incentives and reward schemes are in force. Efforts made by POWERGRID in promoting the implementation of Rajbhasha have been applauded in many forums. Power Finance Corporation Ltd. Implementation of Official Language In Power Finance Corporation Limited (PFC), Rajbhasha implementation is taken as a vital area of Management Operation. During the year, the meetings of the official Language Implementation Committee of the Corporation were organized in every quarter regularly. Detailed discussions were held in these meetings with regard to the progress made in implementation of Official Language Policy and its effective implementation. Rajbhasha Month was observed from 14th September to 13th October, 2008 in the Corporation. The messages of Hon'ble Minister of Home, Hon'ble Minister of Power and Chairman and Managing Director of the Corporation were circulated amongst the employees of the Corporation on Hindi Day. On this Occasion, noted literator Sh. Narendra Kohli was invited as Chief Guest, who addressed the employees of PFC and inspired them to do their day to day work in Hindi by citing examples from his own experiences. At the end of the Hindi Month, a Kavi Sammelan was organized where in renowned Hindi and Urdu Poets like Sh. Kunwar Uday Pratap Singh, Sh. Kanhaiya Lal Nandan, Sh. Wasim Baralavi, Dr. Kunwar Baichan, Dr. Kirti Kala and Sh. Alhar Bikaneri recited their poems. During the year, four workshops were conducted to impart training in Hindi with a view to improve the efficiency of the employees in doing their official work in Hindi. Training programmes to impart training for the use of 'Saransh' Package were also conducted. Various competitions like Vartani Shodhan Pratiyogita, Nibandh, Sansmaran, 'Chitravalivyakh' and "Bhartiya Sanskriti Visheshank" of Urja Dipti Pratiyogita were organized during the year. Further, during the "Vigilance Awareness Week", three competitions namely Essay Writing, Slogan and Pictorial Theme Representation were organized in Hindi & English. A Hasya Kavi Sammelan was also organized. An inter PSU 'Gayan Pratiyogita' was organized by PFC on November 21, 2008 under the aegis of TOLIC. It was for the first time such an event was organized by any PSU in Delhi. Inspections of various Units & Regional Offices of the Corporation were carried out for taking stock of the status of implementation of the official Language Policy in their Units/Offices. The bilingual magazine of the Corporation 'Urja Deepti' was brought out in every quarter, A 'Sanskriti Visheshank was also published which was highly appreciated by the readers. On the occasion of completion of 15 years of Publication of 'Urja Deepti', a 'Sanchayika' was published which was a collection of all the Poems and stories written by the employees of PFC published earlier in 'Urja Deepti' during the last 15 years. The Annual Report of the Corporation was published in diglot form. During the foundation Day Celebration of the Corporation, a cultural programme was organized in Hindi on 16th July, 2008 and during the event, various eminent artists of Song and Drama Division performed their fine acts. Hon'ble Parliamentary Committee on Official Language conducted the inspection of Regional Office (West), Mumbai on October 1, 2008 and highly appreciated the efforts made by the Office in implementation of Official Language policy. Rajbhasha Nireekshan of Regional Office (South), Chennai was also conducted by Ministry of Power on December 2, 2008, who appreciated the progress and performance made by the office in this direction. Rural Electrification Corporation Ltd. Implementation of Official Language Sl. Item Achievements No Meetings of Rajbhasha Implementation Committee 5 2. Inspection of Project Offices 9 3. Hindi Workshops 10 - half day Officers / half day Employees (participants 147) 4. Inspection of internal division 6 5. Hindi Website 100% All advertisement of IPO related work (Print+Electronic) published in Hindi, as a result Hindi promoted & propagated more effectivly. REC was honoured with "Rajbhasha Shri Sammaan" by Bharatiya Rajbhasha Vikas Sansthan. Hindi Essay competition was organised on under the agies of NARAKAS. Hindi inspection of Corporate Office by Second Sub Commiitte of Official Language Parliamentary Commiitte on Hindi Pakhwara was organised from to in C.O.& P.Os. 113 participants in 9 Hindi competitions( 53 winners). Winners were awarded prizes in Prize Distribution Ceremony on

64 Administrative as well as Technical & Financial Glossary of REC was released. Incurred Hindi Books purchase (92%) more than the target. All publications, Reports, Memo, Articles of Association, Press Releases, Annual Report & MOUs were issued biligually. Efforts on to achieve the other targets of Annual Programme Standard Forms were made available on INTRANET. Digitied on-line publication of E-Darpan, which includes progress of hindi work along with different activities. 20 Manuals were updated in diglot form. 2 Manuals were released in Rajbhasha Implementation Committee held on Hindi inspection of Cire, Hyderabad by Second Sub Commiitte of Official Language Parliamentary Commiitte on NEEPCO: The Corporation is making all out efforts to implement effectively the Official Language Policy of the Government of India at its Corporate Office as well as Projects and other offices. Efforts were made to issue papers referred to in Section 3 (3) of the Official Language Act in bilingual form. All possible efforts were also made to achieve the targets as specified by the Department of Official Language. In-house Hindi Training arrangements were made to impart Hindi Language as well as Hindi Typing Training to the concerned employees. During the year, 39 employees were nominated for Hindi Language Training under regular course, 67 employees were nominated for correspondence course and 08 employees were nominated for Hindi typing training. Under the incentive scheme, 58 employees were awarded cash reward as per eligibility. To acquaint the employees with provisions of Official Language Rules and to facilitate them for doing their official works in Hindi, 04 nos. of Hindi workshops were organized at different offices and 51 officers/ staff participated in these Workshops. Training materials were provided to the employees during the Workshop. Offices were also inspected by the responsible officers of Corporate Office to assess the progress made in the use of Hindi and necessary guidelines were provided for proper implementation of the Official Language Policy of the Government of India. In the House Journal - NEEPCO NEWS valuable information relating to use of Hindi were provided for the guidance of the employees. Key words in Hindi with English equivalent were displayed everyday on the black board under the programme Today s Word in order to enrich the Hindi vocabulary of the employees. Rajbhasha (Hindi) Pakhwara was observed and Hindi Divas was celebrated at the Corporate Office as well as in the projects and other offices of the Corporation during the year to create awareness and to encourage the employees for doing their official works in Hindi. Various competitions were conducted in Hindi and attractive prizes were given to the participants. A Hindi patrika NEEPCO JYOTI was published on the occasion. An exhibition was also organized, where the achievements made on the use of Official Language Hindi in the Corporation, were displayed. The Corporation was awarded Rajbhasha Shield (3rd Prize) by Town Official Language Implementation Committee (TOLIC), Shillong, during the year. Rajbhasha (Hindi) Pustakalaya has been functioning at Corporate office, Shillong which was further enriched with valuable books. Dictionaries, Glossaries and other reference books are also available for the use of the employees. Hindi News Papers and periodicals are available in the Pustakalaya. New books in Hindi were added to the library maintained in Corporate office. In subordinate offices also, reference books in Hindi were made available for the use of the employees. Since installation of Hindi Software in Corporate office as well as other offices, a remarkable progress has been made in the use of Hindi in official works. Satluj Jal Vidyut Nigam Limited Official Language Policy Implementation of Official Language In order to ensure the implementation of the Official Language Policy of the Govt. of India, all possible efforts have been made by the company to achieve the targets as specified by the Department of Official Language. Company has received many awards in recognition for these efforts. In-house training arrangements have been made to impart training of Hindi typing to concerned employees, under which five steno-typists/stenographers have been trained in Hindi typing during this period. Under section 3.3(i) of Official Language Act, cent percent documents were issued bilingually. All the letters received in Hindi were replied in Hindi. To encourage executive and non-executive to do their entire work in Hindi, a number of incentive scheme are under implementation namely 1) Payment of One increment every month for doing whole office work in Hindi, 2) Cash Incentive to senior officers on bi-annual basis for outstanding work done in Hindi, 3) Hindi-English and English-Hindi Shabda Gyan Pratiyogita on quarterly basis, 4) Honorarium for writing technical papers in Hindi, 5) Cash prize on passing Hindi typing examination, 6) Cash prize for giving dictation in Hindi by Officers, 7) Cash prize for best write-up published 58

65 in in-house Hindi journal "Himshakti " and 8) Cash prize for issuing 90% or more cheques in Hindi. Under these schemes, 346 executives and non-executives have received prizes amounting to Rs.2,63,407/- approximately. To impart training to the executive and non-executive to do their day-to-day work in Hindi by organizing Hindi workshops/seminars is a continuous process in the company. 13 Hindi workshops/seminars have been organized and 171 no. of executives & non-executives have been trained. Organizing of Hindi quiz competitions on national/important occasions is a regular feature. 340 no. of executives and non-executives were awarded cash prizes of Rs.100/- each. A number of competitions were also organised during "Hindi fortnight" in which 98 executives and non-executives were awarded cash prizes amounting to Rs.1,08,100/- approximately. In recognition of efforts made for implementation of official language, during the year , company was awarded with TOLIC Rajbhasha Shield (First Prize) by Town Official Language Implementation Committee, Shimla, and NTPC Rajbhasha Shield (Third Prize) by Ministry of Power, Govt. of India for best performance. To give impetus to the multi-facet talent of employees, an in-house bi-annual Hindi magazine "Himshakti " (July, 2008 & January,2009 issue) was published and circulated. Tehri Hydro Development Corporation Ltd. Corporation continued to lay great emphasis on the implementation of official language policy of Govt. of India. The employees of the Corporation are encouraged to work in Hindi to the best possible extent. Several steps have been taken to enhance the use of Rajbhasha in official work in the Corporation. Hindi workshops have been conducted in Corporate office Rishikesh and other offices in B. Puram (Tehri), Koteshwar, New Tehri & Noida Liaison office to train & encourage the employees to work in Hindi. Hindi Fortnight have been conducted at corporate office and all subordinate offices. For motivation of employees, various Hindi competitions like Hindi Quiz, Essay competition etc. have been conducted from time to time. The implementation of official language has been monitored through regular inspection and review of Hindi work. Quarterly meetings have been held regularly for reviewing the progress of the use of official language. Quotations of Authors/Prestigious persons regarding Hindi have been displayed in office premises to create awareness for use of Hindi in official work. The officials have attended Hindi meetings and seminars organized by the Ministry, Rajbhasha Deptt etc. Bhakra Beas Management Board Special efforts have been made by BBMB for implementation of Official Language policy of the Union. All the documents under Section 3(3) of the Official Language Act are issued bilingually and letters received in Hindi or signed in Hindi are invariably replied in Hindi. At present about 91% correspondence of Board Secretariat with region A offices and 92% with region B offices is being done in Hindi. Board Website is made available bilingually and discussions in the meetings of Board s High Level Administrative Committees are held in Hindi also and their minutes are issued bilingually. Meetings of the Official Language Implementation Committee of Board Sectt., are held regularly, in which report regarding progressive use of Hindi in any subordinate office of the Board is also reviewed. Almost 60% notings against the target fixed for B region are done in Hindi.Bilingual working facilities are available on all computers of the Board. Training in Hindi typing has been imparted to all the English Steno typists/typists/clerks. Hindi Library has been set up in Board Secretariat and during last seven years, more than 50% amount of total expenditure for the purchase of books is being spent for the purchase of Hindi Books. Hindi Workshops are organised regularly on quarterly basis and subordinate offices are regularly inspected for effective implementation of official Language. Hindi fortnight is organized in the Board Secretariat and its subordinate offices every year in the month of September during which various Hindi competitions are held in order to create awareness amongst the Officers and Employees to work in Hindi. Staff members doing considerable work in Hindi during the year, are also encouraged with cash awards. All magazines/journals of the Board are published bilingually. Two editions of Board s quarterly house journal BHAKRA BEAS SAMACHAR are published in Hindi exclusively. Besides, TAKNIKI SHABDAVALI and RAJBHASHA SAHAYAK PUSTAK has been published and distributed to all employees, so that, they can work in Hindi in a more convenient and effective manner. The second sub-committee of committee of Parliament on official language, had inspected the work of Hindi in Board Secretariat on The office has fulfilled all the assurances given to the above committee and its follow-up action report has also sent to the said committee and Ministry of Power on within the prescribed period. Board Secretariat has been awarded on a number of occasions for excellent performance in Implementation of Official Language Policy of the Government, by Ministry of Power, as well as, by Town Official Language Implementation Committee, Chandigarh. Board Secretariat has been given first prize for excellent performance in Hindi during the year , by Town Official Language implementation Committee, Chandigarh on Board Secretariat has also been given NTPC Rajbhasha Shield (IIIrd prize) for doing excellent work in official 59

66 language during the year , in the meeting of Hindi Advisory Committee, held on in Kodaikanal by Joint Secretary, Ministry of Power, New Delhi. Bureau of Energy Efficiency During , letters and communications that were received in Hindi, were replied to in the same language. Advertisements on Energy Conservation and Efficiency were released in Hindi in various newspapers. Some TV spots on the theme of energy conservation were developed in Hindi. In the month of September, 2008, BEE organized Hindi Pakhwara from September Essay Competition was also organized to promote use of official language. Central Power Research Institute The Institute was awarded Indira Gandhi Rajbhasha Shield for the year for outstanding work done in the field of Official Language Implementation on 14th Sept A Hindi software seminar was organised on 25 June 2008 at Direct Taxes Regional Training Institute, where a demonstration of all the packages developed by Department of Official Language and hands on practice was given. National Power Training Institute Meetings of Official Language Implementation Committee of NPTI are convened on quarterly basis. Hindi Pakhwara was observed from Sept-2008 and Hindi Diwas was celebrated with great enthusiasm. For the year , Rajbhasha Vibhag, Ministry of Home Affairs allocated 54 one week Hindi Computer Training Programs to NPTI for the employees of the Central Govt. Departments/Banks/Undertakings etc. During the year , 52 programs have been conducted. NPTI is awarding cash prizes to its employees for noting/ drafting in Hindi under the Original Writing in Hindi Incentive Scheme. Damodar Valley Corporation IMPLEMENTATION OF OFFICIAL LANGUAGE DVC, the first multipurpose river valley project of Independent India is equally committed to promote and implement the Official Language Policy of the Government of India in its Headquarters and field formations. Implementation of Official language activities in DVC has enabled the employees of the Corporation to execute their day to day official work in Hindi. During the period under review, DVC has implemented different Official Language programmes keeping in view the directives received from the Department of Official Language, Ministry of Home Affairs and Ministry of Power, Government of India for the progressive use of Hindi in the official work of the Corporation. Hindi classes for imparting Hindi knowledge among the employees of DVC are being run at the Headquarters as well as in the field formations. 51 employees qualified in the Prabodh, Praveen and Pragya examinations at the Headquarters during the period under review. Some of the employees have also acquired knowledge in Hindi through correspondence course. An arrangement for Hindi typing/stenography classes has been made in DVC Headquarters. All the employees received incentives after qualifying these examinations. As a result of the regular training and with the recruitment of some staff in the Hindi Section, there has been a remarkable increase in implementation of Section 3(3) of Official Language Act and Rule 5 of the Official Language Rules in DVC. One Joint Hindi Workshop was organized in DVC Headquarters under the banner of Town Official Language Implementation Committee (PSUs), Kolkata with the employees of the Govt. undertakings located in Kolkata. Hindi Diwas/Pakhwara was celebrated also during the year under review. Several competitions related to official language were organised to inspire employees for executing their official functions in Hindi. A large number of non-hindi speaking employees participated in these competitions and successful participants were given prizes. A departmental Rajbhasa Shield was awarded to the best department at DVC Headquarters on the basis of using official language in Corporation s activities. During the Pakhwara, a speech from the desk of the Chairman was distributed to inspire the employees of the Corporation to dispose of their maximum work in Hindi. During the period under review, DVC received "NTPC Official Language Award" for its excellent performance in disposing of Official work in Hindi. DVC has also bagged second prize for its best performance in execution of Official Language Policies among the different corporate offices located in Kolkata from the CALTOLIC (Undertaking), Ministry of Home Affairs, Govt. of India. To propagate the Official Language in true spirit, a Hindi Teaching Laboratory has been set up in DVC Headquarters. It is equipped with a mechanism to rectify the spoken language through Speech Therapy which will be inaugurated shortly. 60

67 CHAPTER - 15 VIGILANCE ACTIVITIES Ministry of Power 1. During the year , emphasis/renewed attention was given on the preventive vigilance in the public sector enterprises of Ministry of Power. Review of the vigilance work being undertaken by the various Public Sector Enterprises and offices functioning under the Ministry of Power was done. 2. In the present scenario of constant security threats, action was taken to strengthen the security of vital power installations, regular efforts/interaction were made with MHA and PSUs to enhance security of vital installations of power sector and comply with security instructions received from various agencies. 3. A regular monitoring and watch is being kept on the cases received from CVC under Public Interest Disclosure Resolution. CVO, Ministry of Power submitted reports and comments on the cases referred by CVC including those under the CVC Act. CVO, Ministry of Power also held discussions in CVC for disposal of important cases. PSUs were requested to ensure greater compliance with the guidelines issued by the CVC for processing and award of tenders. Various cases of vigilance irregularities were disposed of by the Vigilance Wing. Apart from dealing with the complaints of previous years, three disciplinary cases and sixty new complaints were received and dealt with during the year, in consultation with concerned authorities. Timely disposal of vigilance clearance has been ensured in cases pertaining to Ministry and PSUs. During the period a few vacancies to the posts of CVOs and part time CVOs occurred and all out effort is being made to fill these vacancies at the earliest. 4. Vigilance Awareness Week was celebrated in this Ministry and its attached offices/psus from 3rd November to 7th November On this occasion the pledge of integrity and transparent working was administered to all the officers and staff of the Ministry. An essay competition on the subject IS IT POSSIBLE TO ROOT OUT CORRUPTION TOTALLY IN DEMOCRACY? was organized in the Ministry of Power by inviting suggestions from the officers and staff of the Ministry in order to disseminate the message of integrity, honesty and transparency in the society. Thirteen submissions were received and three entries declared winners. CEA The Vigilance Division, CEA deals with various facets of Vigilance mechanism and functions for carrying out investigations into complaints, suggesting corrective measures for improving the control system, compliance of laid down procedures and also for carrying out preventive vigilance exercises. Complaints other than anonymous/pseudonymous were taken up for investigation promptly and after completion of investigation, reports submitted to the prescribed authority. As on , there were five cases of disciplinary action pending under CEA s disciplinary jurisdiction. Two cases were added during the period. All the seven cases of disciplinary action have since been finalised. Thus, at present, (as on ) there is no case pending finalization. Prescribed periodical returns were sent to the Ministry of Power in time Vigilance Division has carried out inspection at one of the formations of CEA with a view to appraise and ensure adaptation of proper procedure as well as suggesting improvement thereon. As part of preventive vigilance, the Vigilance Division is helping in ensuring job rotation in sensitive posts. The Vigilance Division has also taken steps to ensure that web-site of CEA plays an important role in increasing transparency in its functions. Vigilance awareness week was observed from 24th Nov., 2008 to 28th Nov., 2008 emphasizing the need for efficiency and transparency in public spending, raising awareness among the users of the services provided by the department, etc. NTPC Ltd. 1. NTPC Vigilance Department an ISO accredited Department of the NTPC, consists of Four Units, namely Corporate Vigilance Cell, Departmental Proceeding Cell (DPC), MIS Cell, Technical Cell (TC). These units deal with various facets of Vigilance Mechanism. Exclusive and independent functioning of these Units ensure transparency, objectivity and quality in vigilance functioning. 2. The disposal of complaints has been in accordance with the time-frame prescribed by the CVC. Total 99 complaints were handled during the period. Out of the above 58 complaints were carried to a logical conclusion and the remaining are under investigation. Out of the remaining complaints, 05 complaints were received 61

68 from CVC. These complaints were also taken up for investigation within the stipulated time-frame officials were proceeded against for major penalty disciplinary action, 111 officials were proceeded against for minor penalty action and 83 officials were proceeded against for administrative action from Jan 01, 2008 to Mar 31, Major penalty was imposed on 04 officials and minor penalty was imposed on 66 officials. Out of the above cases 12 employees were facing disciplinary action in CVC cases as on Mar 31, 2009 (All 12 employees are facing major penalty action). 4. So far as CBI cases are concerned, 02 CBI cases are under prosecution as on Mar 31, Surprise Checks were conducted. Recovery of Rs. 1,49,16,943/- was effected. 37 System Circulars were issued. During the period 55 Preventive Vigilance Workshops were conducted at various projects/ places in which 1601 employees participated. Property Returns relating to immovable property are obtained from employees every year. Internal Audit Reports pertaining to NTPC Projects/ Stations, sites and Regional Headquarters received from NTPC Finance Dept. during the year were examined from vigilance angle. NHPC Ltd. VIGILANCE ACTIVITIES / DISCIPLINARY CASES NHPC Vigilance Division at Corporate Office has been granted ISO certification by BIS. All procedures have been documented and systems of monitoring of Vigilance complaints and disciplinary cases have been implemented to avoid delays. Regular and surprise inspections are being conducted by the Vigilance Department at regular intervals. Actionable points are identified by the Project Vigilance Officer (P.V.O.) and intimated to Head of the Project from time to time. Intensive examination of the work is carried out by Chief Technical Examiner of the CVC as well as personnel of Vigilance Department of NHPC. 07 Disciplinary cases in vigilance matters have been handled out of which 05 cases were settled and only 02 cases are on going. In 05 cases, 03 officers were exonerated and 01 officer was awarded major penalty (Removal from service) and 01 Officer was awarded minor penalty. Emphasis has been laid on preventive vigilance by issuing circulars and guidelines based on inspection / intensive examinations. Various vigilance awareness programs are also conducted at regular intervals, so as to make working as transparent as possible. Two Workshos of Vigilance Officers were conducted on 02nd June 2008 and 10th February 2009 respectively, in order to review and improve their functioning. Power Grid Corporation of India Ltd. During the period January to March, 2009, 25 complaints were received and a total of 53 complaints were taken up for investigation. Out of these 25 complaints, 5 cases were taken up for investigation on the basis of Audit Paras and 6 cases were referred by Central Vigilance Commission for investigation. While 36 complaints have been disposed till date, 21 cases are currently pending for investigation. Investigation into complaints has resulted in the issue of Advisory Memos to 24 employees and minor penalties have been imposed on 14 employees and 3 employees were exonerated of the charges. 9 cases are currently pending for initiation of departmental proceedings. The Vigilance Department of POWERGRID has, laid special emphasis on inspections, both at the Corporate as well as the regional level. During the period January 2008 to March, 2009, 131 inspections including 116 site inspections were conducted. On this basis an amount of Rs. 4,95,20,043 /-- has been recovered on the basis of earlier inspections conducted during the year till date. Besides, the CTE's organization conducted 4 inspections in POWERGRID resulting in recovery of Rs Crore. 139 nos. CTE paras have been settled during the year. In POWERGRID, high priority has been placed on training and as part of these various workshops were organized at the regions.136 executives were imparted training on vigilance matters during the year. Such workshops have shown positive outcome. One workshop on the RTI Act was also organized during the year in which 43 executives participated. Apart from the above, a three day workshop on Value and Ethics in Management was organized at Corporate Centre from 21st to 23rd February, 2008 for 25 Executives. Vendors meetings have also been organized at the regions and at Corporate Centre in order to increase transparency and interface with the stakeholders. Several procedural improvements were carried out during the year including amendment to Rule 13 of the CDA rules regarding furnishing of information by employees regarding memberships of trusts by them and their family members, introduction of process online inspections of critical preaward as well as post-award activities to strengthen the preventive aspect of inspections, policy regarding weeding out destruction of records of the Vigilance Department, to deploy authorised personnel for receipt/ dispatch work at sub-stations, proper utilization of the services of the Assistant Engineers recruited on Fixed Tenure basis, time extension for delayed projects and safety measures to be taken at construction sites etc. Besides, all reports, charge-sheets as well as property returns 62

69 of employees are being furnished on-line. Web Based Complain Handling System is already functioning at Corporate Centre, ERLDC, NERLDC, SRLDC and NRLDC. The vigilance awareness week was also organized from November 3, 2008 to November 7, 2008 as per the guidelines of the Central Vigilance commission. On this occasion, an interactive session was organized with the vendors of POWERGRID, in which repeated lacunae observed during vigilance inspections were discussed. Besides the above, an inter school debate competition and a satirical poem writing competition for employees were also organized. The Vigilance Awareness Week concluded with the release of the in-house journal of the Vigilance Department, CANDOUR by Shri Jairam Ramesh Hon ble Minister of State for Power on the occasion. Besides the above, the review of the vigilance work was undertaken by the Board of Directors during this period on 9th April, 2008 and 21st January, 2009 respectively. Power Finance Corporation Ltd. During the financial year the Vigilance Unit functioned as an effective tool of positive management with the thrust being on preventive Vigilance. This aspect was focused up on by Conducting periodic and Surprise Inspections of various units and by issuing effective guidelines to streamline systems with the aim of eliminating loopholes and ensuring transparency in day to day operations so as to minimize scope for misuse. Vigilance Unit undertook the review of operational manuals of various activities of the Corporation. A number of comprehensive manuals on different areas of company s activities have already been notified after review and some other manuals are in process of finalization. Further during this period detailed investigation was carried in several cases of registered complaints. In accordance with the directives of CVC, Vigilance Awareness Week was observed from 3rd Nov to 7th Nov, 2008 in the Head Office and Regional offices of the Corporations. In order to disseminate a strong message of integrity and transparency in public service, Interactive two days programme on Transparency and Efficiency in Public Expenditure was held for the benefit of the executives and customers/clients of the Corporation so as to sensitize them about the evil effects of corruption and also to educate them on the initiatives taken for improvement in systems, procedures and the complaint handling policy of the Corporation. Slogan writing, Essay writing & Pictorial Theme representation Competitions were organized on themes relating to vigilance/corruption with the aim of involving employees and encouraging them to come forward with innovative ideas in spreading awareness about the harmful effects of corruption. A Handbook titled PFC vigilance hand book was released on the occasion of Vigilance Awareness Week. The Handbook provides guidelines to the officials dealing with vigilance matters more efficiently and will educate others regarding work of vigilance. Rural Electrification Corporation Ltd. Progress made during to The Vigilance Division headed by the Chief Vigilance Officer (of the rank of Functional Director) constantly endeavoured to emphasize on Preventive Vigilance so as to improve upon systems and procedures and leaving minimum scope for discretion. It also ensured to enforce discipline in exercising power in a judicious way in matters relating to administrative and financial functions. The Vigilance set up in REC consisting of one CVO and three Managers/officers, though small, has been an effective managerial tool in enhancing the performance of the Corporation by way of pursuation with functional divisions to systematize /document the policies/procedures Presently, there is no CBI case against any employee of the Corporation. Three disciplinary cases and only 2 complaints are pending. During the Vigilance Awareness Week 2008 emphasis was laid on the initiatives taken for improvement of the systems and procedures and of the avenues available to the user citizen for redressal of grievances like procedure for making complaints under of Public Interest Disclosure and Protection of Informers ( PIDPI) Resolution, 2004 known as Whitle Blower Resolution highlighting the fact that the identity of the complainant is kept secret and the complainant is protected from victimization. Various programmes were also organized at Corporate Office/Zonal/Project Offices and Central Institute for Rural Electrification, Hyderabad. In compliance to the instructions of CVC, the sensitive posts in the Corporation have been identified and informed to CVC. HR Deptt. has been advised to rotate the officers working on these posts for a long time. Information with a vigilance bias was scrutinized carefully. Vigilance Division initiated measures to streamline and strengthen office system and procedures after some systemic failures were noticed. In this process, all important circulars as and when received from CVC and circular issued by Vigilance Division from time to time are regularly placed on REC intranet for information of all the Zonal Offices, Project Offices/Central Institute for Rural Electrification, Hyderabad. Agreed lists were finalized in respect of all Zonal Offices/ Project Offices/Training Institute of REC in addition to its Corporate Office at Delhi after close interaction with local branches of CBI. Prescribed periodical statistical returns were timely sent to CVC, CBI, MOP on time and instructions 63

70 received from the Central Vigilance Commission from time to time were also complied with. Performance of Vigilance Division was reviewed regularly by the BOD-REC, CVO-MOP, CVC in addition to constant reviews undertaken by the CVO, REC in accordance with the prescribed norms. NEEPCO: During the period from to , NEEPCO s Vigilance Department dealt with various facets of Vigilance Mechanism under the directives and guidelines issued from the Central Vigilance Commission from time to time. For exclusive and independent functioning of vigilance department, NEEPCO ensured transparency, objectivity and quality in vigilance functioning. Complaints received from various sources other than anonymous/pseudonymous were taken up for investigation promptly and the same have been disposed off in accordance with the time frame prescribed by the CVC. As on 1st January, 2008, 3(three) complaints were pending and subsequently all these complaints have been finalized after detailed investigation/inquiry. During this period, 9(nine) new complaints have been added which have also been investigated. Out of these, 2(two) complaints are pending for final disposal as on Emphasis was also given to the aspect of preventive vigilance to streamline the rules and procedures and making all efforts to arrest the loopholes detected during investigation of various cases. The observation raised by Chief Technical Examiner, CVC in their intensive examination reports had been attended to and interacted with the concerned departments pointing out the observations for taking effective and remedial measures by the management. During this period, the related paras against different intensive examination of works carried out by CTE had been replied on further queries received from CTE. A few paras are pending with different authorities of the Corporation against only 2(two) intensive examination of works carried out by CTE earlier. In order to improve system and procedure in respect of various short comings observed related to processing of tender of works and procurement, the management of NEEPCO was advised to follow the CVC circulars/ guidelines strictly as had been circulated from time to time. For better functioning of Vigilance Department, 19(nineteen) nos. of officers and staff have been posted in 5(five) commissioned projects and 2(two) ongoing projects of the Corporation during this period. The vigilance wings of the respective projects have started functioning. During this period 3(three) nos. of periodic and 4(four) nos. of surprise inspections have been conducted at different projects by vigilance officials of the HQ. An orientation program was also organized at the Corporate HQ on 23rd & 24th September, 2008 where all the officials above the rank of Executive Supervisor posted in the vigilance department had participated. All the important CVC circulars and OMs issued from the year 2000 onwards have been circulated to all the vigilance wings of respective projects for record and ready reference with a view to improve overall system in the Corporation. Vigilance awareness week was also observed in NEEPCO with tremendous enthusiasm in all projects and other offices including Corporate HQ from 3rd November, 2008 to 7th November, 2008 and the week commenced with the pledge on 3rd November,2008. During this period, seminar/penal discussion and open sessions besides slogan writing competition amongst the employees on anticorruption were organized at Corporate Office and site offices as part of preventive vigilance measures. As on , 5(five) disciplinary cases were pending and 2(two) new cases have been added subsequently. Out of all these, 4(four) cases have been disposed off during this period and the remaining cases are in various stages of disciplinary proceedings. Besides these, the Annual Property Returns (APAR) of the employees has also been scrutinized. Satluj Jal Vidyut Nigam Limited VIGILANCE RELATED ACTIVITIES UNDERTAKEN IN SJVN Various routine vigilance administrative matters / regular vigilance activities, are being continued in SJVN like maintaining up-to date vigilance status of the officials of SJVNL, granting vigilance clearance to SJVN Officials for various requirements, identification of Sensitive Posts, action on Complaints, conducting inquiry proceedings in the pending major penalty cases, preparation of the Agreed list and List of Persons of doubtful Integrity, conducting Surprise Checks / Inspections by Vigilance, conducting training / workshop on vigilance, holding of Vigilance Awareness Week w.e.f. November 03 07, Besides above routine administrative matters, the prime emphasis has been mainly on the preventive vigilance in SJVNL. The preventive vigilance includes those steps which are instrumental in reducing or eliminating corruption from public services. In the above regard, various initiatives have been undertaken, by the Vigilance Deptt., during , to improve the overall functioning of the Corporation, by improving and introducing more fair and greater transparent functional systems, in line with the changing scenario, to achieve and ensure good corporate governance standards, by leveraging technology, and through other preventive vigilance measures as a tool, some of which are detailed below : 64

71 Extent of IT usage and the E - Governance : To adopt and implement transparent systems and strive hard to improve the organizational working in all spheres, by leveraging technology, increasing transparency in the decision making process through effective use of information technology in the discharge of various organizational functions, Compliance of CVC instructions regarding E-Procurement like publication of tenders and Uploading of Tender / details of awarded tenders on officials websites, are being ensured. The process to introduce computerization of Property Returns of SJVNL Officials is also under progress. E - Banking : In order to bring about more transparency in the financial system, the issue regarding implementation of E- Banking for financial transactions / payments etc., is also being pursued. Serious efforts have been made by SJVN Management to implement E - Banking, in spite of functional difficulties being faced in this regard, due to remoteness of sites and unavailability of core banking facilities, at remote locations. The major payments are being done through RTGS system / Electronic mode. Due to the sustained efforts, around 82 % of the total payments, are being made to the contractors through E-Payment system only, in SJVN. Further, it has also been decided that in all the future contracts to be entered at Corp. Office (CCD / ECD) will include the condition that payment will be made through electronic mode and contractors will be required to give their bank particulars for the same. The matter regarding compilation of status of bill payments to contractors / suppliers etc. and uploading of the same on SJVN official website, is also being followed vigorously. E - Procurement : E - Procurement in SJVN, was initiated in serious earnest, and the same was also included as one of the Targets in the Memorandum of Understanding (MOU) signed between SJVN and Ministry of Power (MOP), Govt. of India (GOI) for the FY performance. In this regard, SJVN also opened Suvidha Kenderas, at Project sites, to facilitate filing of online bids by the contractors. The Work Order for one tender "Pilot Project" for E-Procurement implementation in SJVN, was then placed on M/s ITI Ltd., Delhi, on June 09, The bids received through the E- Procurement process, had already been opened on the scheduled date i.e. on September 15, Now, the letter of award has also been placed on Dec. 02, 2008, on M/s ITI Ltd., Delhi, for implementing and providing E -procurement system at all SJVNL procurement locations. It is a great beginning in right direction to ensure fair and transparent procurement process in SJVNL, which shall not only restrict unfair trade practices, but at the same time it shall also be helpful in expediting the procurement process. Implementation of E-procurement shall also help in discouraging formation of cartels by the prospective bidders. E Disposal : As an another step towards leveraging technology for achieving greater transparency, E-Disposal, has also been started in the Nathpa Jhakri Hydro Power Station of SJVNL, to dispose off scrap items, obsolete and unserviceable materials and machineries. The E Auctioning mode of disposal provides a more prompt and transparent service with a wider coverage leading to greater competition amongst the buyers. Man Power Planning & Job Rotation : The list of sensitive posts, identified and finalized, in respect of SJVNL, was also submitted to CVC, on June 26, Integrity Pact : SJVN Management is in the process of implementing the Integrity Pact (IP), in a bid to institutionalize transparency in public procurement process, in line with the CVC's instructions, at the earliest. The draft Proposal for implementation of Integrity Pact including nomination of Independent External Monitors (IEM), has been finalized and shall be implemented shortly. Tehri Hydro Development Corporation Ltd. The thrust of the Vigilance Department of THDC is on improving Vigilance Administration by leveraging technology and increasing transparency through improvement in systems & procedures and leveraging technology through effective use of website, besides following the traditional methods of preventive vigilance under the overall guidance of the Central Vigilance Commission. The Process of E- tendering system for procurement has already commenced in THDC at Rishikesh, Tehri & Koteshwar. The activities of Vigilance Department were reviewed by the CVO on the monthly basis. The time schedule for conducting enquires and investigation, as prescribed by the Central Vigilance Commission, was by and large adhered to. Complaint received from Central Vigilance Commission under Public Interest Disclosure Protection of Informer Resolution has been completed within the prescribed time frame. With a view to further strengthen the vigilance work, regular and surprise inspections were also carried out by the Vigilance Department, Settlement of pending paras of report of intensive examination of various works conducted by the 65

72 Chief Technical Examiner of the Central Vigilance Commission was taken up on priority basis with the result that most of such paras were settled by the Chief Technical Examiner s Organisation. CTE type examinations of works have been undertaken by the Vigilance Department. These measures have resulted in savings of more than Rs.2.64 crores to the Corporation. Agreed list was reviewed in consultation with the Superintendent of Police, Central Bureau of Investigation, Dehradun. Monthly Report to the CVC, Quarterly Reports to MOP were sent in time. Instructions and directions issued by Central Vigilance Commission are being followed in letter and spirit. As on date two complaints are pending for investigation with the Vigilance Department and three numbers of Disciplinary cases against officers are pending with Personnel Department.. No CBI case is pending against any official of THDC. Vigilance Awareness Week-2008 was organized from 3rd November to 7th Novermber, 2008 at all the Projects/Offices of THDC during which widespread publicity of vigilance awareness measures was undertaken. Bhakra Beas Management Board The Vigilance Organisation in Bhakra Beas Management Board comprises a part time Chief Vigilance Officer (CVO) of the rank of Superintending Engineer who is helped by six part time Vigilance Officers (VOs) of the rank of Superintending Engineers at various Project Stations of Bhakra Beas Management Board, viz Bhakra Dam, Nangal (Two VOs), Beas Dam, Talwara (One VO), Beas Satluj Link Project, Sundernagar (One VO), Chandigarh (Two VOs). Any complaint(s) received is got investigated through the VO and appropriate action is taken. The Vigilance Organisation in BBMB is doing earnest efforts to inculcate in all the employees of BBMB the following as a measure of preventive vigilance:- i) To check and control the very tendency on one s part to delay the matters. ii) To record speaking orders in clear terms on the files giving merits of the orders. iii) iv) To avoid decisions being influenced by those who might have an axe to grind. To be always receptive to any suggestion by a colleague, superior or a subordinate which may result in savings to the exchequer. v) To be firm in conviction that integrity is to be safeguarded and any price paid in this regard is insignificant. vi) To keep a watchful eye on all breeding places of corruption. vii) To expose without fear those involved in acts of self gratification. viii) To take pride in humble living and acts of honesty. ix) To follow the rules, procedures, instructions, manuals, etc. meticulously. x) To avoid drawing illogical and dubious inferences so as to derive undue benefits, whenever an ambiguity in rules is encountered. xi) To expedite the inquiries, their follow up action to get decision from parent States/State Electricity Boards. xii) Implementation of disciplinary actions without any delay wherever BBMB itself can take the same Besides above, Vigilance Awareness Week 2008 was celebrated w.e.f to in BBMB offices at Chandigarh as well as at Project Stations. An interactive session on vigilance awareness was also conducted on at Chandigarh. Bureau of Energy Efficiency During the year , there were no major complaints received and no disciplinary case initiated. Central Power Research Institute The vigilance activities of the Institute are looked after by a Chief Vigilance Officer. Timely returns of Vigilance activities are filed with appropriate authorities. No case has been received during the year. There were no disciplinary cases during the year National Power Training Institute Vigilance Cases : There were two (2) Nos. of Vigilance Cases at the beginning of the financial year and both the cases have since been decided. Disciplinary Cases : There were three (03) cases at the beginning of the year , out of which 02 have since been decided and 01 is in process. Damodar Valley Corporation In terms of the Central Vigilance Commission and Ministry of Power's guidelines, the Vigilance Department of DVC laid special emphasis to bring about objectivity, transparency and accountability in the different activities of the organization. Various activities taken up during the aforementioned period are enumerated below: Disposal of Complaints : All the complaints received by the Vigilance Department during the period were disposed within the prescribed time frame. The Complaints, which were found to be without any vigilance angle, were forwarded to the concerned Department for suitable administrative action. Inspections : Greater stress was laid during the year on periodic 66

73 inspections as part of the preventive vigilance exercise. The Vigilance Department conducted 144 periodic inspections and 72 surprise inspections. Two intensive examinations on CTE's pattern were also carried out. Specific issues observed during the inspections were brought to the notice of the concerned HOD and other officials for suitable corrective and administrative measures. In some cases it was observed that there is a need for effecting suitable changes in the procedure/manual regarding incorporation of L.D clause in the NIT, time frame for floating of STE on OEM/OES/standard source basis, number of vendors to be selected for LTE, tolerance in the quantum of QR, guidelines on interest free advance, power to decide period of warranty/guarantee, cases where bidder fails to quote for mandatory items, EPF compliance certificate by contractors etc. Such cases were taken up with the administration and Management has made necessary modifications/clarifications in those areas. System Improvement : The following areas of the existing procedures were taken up with the management for effecting necessary changes and bringing in more transparency and objectivity : 1. Online filling of Annual Property return 2. Publishing of details of award of tenders above threshold value on DVC website 3. Hoisting of status of all bill payments to contractors/ suppliers on website 4. On line availability of application form & other requirements for registration of vendors etc. 5. Provision of separate chapter in works & Procurement Manual on Removal, banning & suspension of firms/ Contractors for their non-performance etc. DVC Management has issued necessary O.Ms. in respect of the areas mentioned under Sl. No. b & d above. However, issuance of necessary orders in respect of a, c & e are under process. Other Activities Vigilance clearance in respect of 2648 persons was given for different purposes. Around 300 APRs of employees were scrutinized during the period. As per CVC guidelines, DVC Board also reviewed activities of the vigilance department. Annual Work Plan for the year has also been prepared. The prescribed periodic returns to CVC, CTE and MOP on anti corruption have been submitted to concerned authorities, in time. Vigilance Awareness Week has been observed during the month of November,2008 in all field formations as well as HQs. CVC directive to put up the details of the all tender of Rs. five lacs and above after finalization in website has been taken up vigorously for implementation. 67

74 CHAPTER - 16 ACTIVITIES RELATING TO WOMEN EMPLOYEES MINISTRY OF POWER There are 43 women employees in the Ministry of Power. The representation of women employees at various levels in the Ministry of Power is indicated below : Group Total Employees No. of Woman Percentage of overall staff (as on ) Employees strength A B C D Total Employment of women in various grades in the Ministry of Power depends on the nominations received from the recruiting agencies such as the Union Public Service Commission, Staff Selection Commission etc. A complaints Committee exists in the Ministry of Power to look into the complaints of sexual harassment by the women employees of the Ministry. A Women's Cell too exists in the Ministry to oversee various welfare activities of women employees. NTPC Limited Group Total Employees Number of Percentage of overall (as on ) Women employees staff strength A B C D (ES) D (S) Total NHPC LTD. ACTIVITIES RELATING TO WOMEN EMPLOYEES No. & percentage of women employees in NHPC as on is as below: Total Employees Number of Percentage of overall (as on ) Women employees staff strength Total % Steps taken for Welfare of women employees: Special care is always taken to nominate deserving women employees to training programs / seminars organized exclusively for women employees. Crèche facility is provided for women with infant children in Corporate Office. Special committees with third party association have also been set up to look into the grievances / complaints of harassment of women employees. 68 Child care leave for women employees to take care of their newborn / infant children. Child Care Leave on adoption of a Child. Maternity leave as per rules. Relaxation in attendance timings for female employees at Corporate Office. Option to declare parents / parents-in law under LTC / Medical Rules.

75 POWER GRID CORPORATION OF INDIA LTD. As on March, 2009 there are 481 Women Employees working at different levels in the corporation out of a total of 8214 employees. Details are given below: Category Total Employees Number of Percentage of overall (as on ) Women employees staff strength Executives Non-Executives Total POWER FINANCE CORPORATION LTD. ACTIVITIES RELATING TO WOMEN EMPLOYEES The Company has women in important and critical functional areas. Women representations have gone across hierarchical levels. The Company provides equal growth opportunities for the women in line with Govt. of India philosophy on the subject. The women are adequately represented, with % of the total work force excluding Board level employees. Group Total Employees Number of Percentage of overall (as on ) Women employees staff strength Group A % Group B % Group C % Group D Total % RURAL ELECTRIFICATION CORPORATION LTD. Activities relating to Women Employees Representation of women are indicated below:- Group Total Employees Number of Percentage of overall (as on ) Women employees staff strength A B C D Total NEEPCO Representation of Women employees in NEEPCO as on are as follows. Total Employees Representation of Women Employees as on Nos. Nos. % NEEPCO has a Women welfare Association to look after the interest of the Women Employees in particular besides undertaking various welfare activities with full cooperation of the Management. 69

76 Knitting and embrodiery training to village girls SATLUJ JAL VIDYUT NIGAM LIMITED Activities relating to Women Employees Representation of women are below:- Total Employees Number of Percentage of overall (as on ) Women employees staff strength Total Employment of Women: Since the inception in 1989, 132 females have been recruited/ taken on deputation at various executive / non - executive levels in the Corporation. Their present strength accounts for about 7.56 % of the total work force on the rolls of the Corporation. It is ensured that women employees get adequate representation in various activities / programmes in the Corporation. In the year 1997, a Women Cell has been setup in the Corporation with the objectives of promoting awareness among women employees about their rights and their all round development. This cell is being headed by a female employee of the rank of an executive in the middle level management. This Cell is functioning effectively since then. In line with Supreme Court Judgment in the matter of Vishaka and other Vs. State of Rajasthan, necessary clause has been incorporated in the conduct, discipline & appeal rules and certified Standing Orders of the Corporation besides formulating Complaint Committees one each at Corporate Office and Project Site to look into the matters relating to Sexual Harassment of Women Employees at work place. TEHRI HYDRO DEVELOPMENT CORPORATION LTD. Representation of women may be indicated in the format given below Total Employees Number of Percentage of overall (as on ) Women employees staff strength Total % 70

77 BHAKRA BEAS MANAGEMENT BOARD Activities relating to Women Employees Representation of women in BBMB is indicated below:- Group Total Employees Number of Percentage of overall (as on ) Women employees staff strength A B C D Total BBMB is a statutory body set up by the Ministry of Power consequent upon the enactment of Punjab Re-organisation Act, 1966 to carry out the functions of operation and maintenance of Bhakra Nangal Projects on behalf of the Partner States for which Staff for the operation & maintenance of BBMB works is provided by the Partner State Govts./ State Elecy. Boards on transfer basis. However, in the event of inability of Partner State Govts./ State Elecy. Boards, BBMB resorts to direct recruitment in respect of Group C & D employees. BBMB is following the reservation policy of Punjab Govt. issued from time to time. Due representation is being given to various categories of employees as per policy of the Punjab Govt. BUREAU OF ENERGY EFFICIENCY Representation of women is indicated below:- Group Total Employees Number of Percentage of overall (as on ) Women employees staff strength A B C % D Total % CENTRAL POWER RESARCH INSTITUTE Representation of women is indicated below:- Total Employees Number of Percentage of overall (as on ) Women employees staff strength Total % The women cell has been running effectively a crèche as a welfare measure for the employees and residents of the colony. The Institute has 84 women employees out of 684 total strength. NATIONAL POWER TRAINING INSTITUTE Representation of women is indicated below:- Total Employees Number of Percentage of overall (as on ) Women employees staff strength Total % DAMODAR VALLEY CORPORATION Representation of women is indicated below: Group Total Employees No. of Woman Percentage of overall staff (as on ) Employees strength Group A % Group B % Group % C & D Total % 71

78 CHAPTER - 17 PHYSICALLY CHALLENGED EMPLOYEES MINISTRY OF POWER Ministry of Power appreciates the requirement of providing reservation to the Physically Challenged in appointments and the various Government directives in this regard are duly followed by it. The implementation of the reservation policy for Physically Challenged persons in the Ministry of Power and various organisations under its administrative control is monitored by the Deputy Secretary (Administration) & Liaison Officer (Physically Challenged) of the Ministry. 2. The representation of Physically Challenged employees in the Ministry as on is as under : Group Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees A B C Group D Excluding sweepers Group D (Sweepers) Total NTPC Limited Representation of Physically Challenged Employees Group Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees A B C D (ES) D (S) Total NHPC LTD. No. & Percentage of Physically Challenged employees in NHPC as on is as under: Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees Total % 72

79 Steps taken for Welfare of Physically Challenged employees: The reservation and relaxation is provided to Physically Challenged Employees in direct recruitment and promotions as per guidelines issued by DoPT/Ministry of Social Justice & Empowerment from time to time in addition to following welfare schemes:- NHPC Rehabilitation Scheme of Physically Challenged Employees provides for Grants for vocational Training- Financial Assistance who get physically handicapped while in service. Financial Assistances is also extended to physically handicapped children of employees for vocational training. Reimbursement of Cost of Artificial Limbs and extending interest free loans for the same. Free medical advice / assistance to physically handicapped persons. Reimbursement of monthly Conveyance Allowance for Blind and Orthopaedically Handicapped employees. Scheme of Children Education Assistance to employee s children who are physically handicapped/ mentally retarded. The reimbursement is allowed even if they continue for more than two academic sessions in a year. LTC facility is extended to the dependent children who are physically handicapped / mentally retarded. Reimbursement of charges for purchase of hearing aid is allowed to the employees and their dependents. Reservation for the physically handicapped candidates is extended on recruitment to certain posts as per Government guidelines. Restriction of age is not applicable in respect of physically / mentally retarded children for considering him / her as a dependent. Provision of granting Special Casual Leave upto a maximum of 10 days in a calendar year to differently abled employees with disabilities as defined in the Persons with Disabilities (equal opportunities, protection of rights and full participation) Act 1995 for participating in the Conferences / seminars / trainings / workshops related to disability and development related programmes organized at Nation / State level agencies to be specified by the Ministry of Social Justice and Empowerment. POWER GRID CORPORATION OF INDIA LTD. As on March, 2009 there are 52 Physically Handicapped Employees working at different levels in the corporation out of a total of 8214 employees. Details are given below: Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees Total POWER FINANCE CORPORATION LTD. The Company has been making necessary efforts to discharge its obligations satisfactorily in terms of presidential guidelines in respect of Physically Challenged employees. Group Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees Group A % Group B % Group C % Group D Total % 73

80 RURAL ELECTRIFICATION CORPORATION LTD. Representation of Physically Challenged Employees is indicated below:- Group Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees A B C D Total NEEPCO: Representation of Physically Challenged Employees in NEEPCO as on is as follows. Total Physically Challenged Employees Percentage of Employees Physically Challenged (Nos.) VH HH OH Total Employees Physically Challenged Employees The Corporation recognizes that persons with disabilities are valuable human resource of the country and need to be provided equal opportunities for participation in all spheres of social and economic activities. In keeping with the provisions contained in the PWD Act, 1995, the Corporation provides 3% reservation in employment to persons with disabilities against identified posts. In regard to the statutory obligations in terms of Section 46 of the Persons with Disabilities (Equal Opportunities, Protection of Right and Full Participation) Act, 1995, necessary action has already been initiated to implement the provisions relating to Barrier-free Buildings by providing ramps with railings, adaption of toilet for persons with disabilities, providing Braille symbols and auditory signals in elevators of lifts within the time limit fixed by the Ministry of Power. Necessary steps are also being taken to modify all relevant rules, bye-laws, guidelines, documents, specifications, etc to include barrier-free features in buildings so as to make them accessible to persons with disabilities. The Corporation has since taken a policy decision to organize health check-up camps for the benefit of disable persons on regular basis besides creating self-employment opportunities for disabled persons in a planned manner under Corporate Social Responsibility-Community Development(CSR_CD) Scheme of the Corporation. SATLUJ JAL VIDYUT NIGAM LIMITED Physically Challenged Employees Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees Total Employment of Physically Challenged Persons From the very beginning, it has been the endeavor of SJVN to give due representation to the physically challenged persons in the employment of the Corporation. However, due to geographical conditions and peculiar construction work of the hydro electric projects, most of the posts in the technical area do not suit the disabled persons. As such, their employment has mainly been in non technical posts. At present, their strength is 8 (Eight), which is about 0.46 % of the total manpower of the Corporation. 74

81 TEHRI HYDRO DEVELOPMENT CORPORATION LTD. Representation of Physically Challenged Employees is indicated below Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees Total % BHAKRA BEAS MANAGEMENT BOARD BBMB discharges its functions as laid down in Section 79(1) of the Punjab Re organization Act, 1966 for which staff for the operation & maintenance of BBMB work is provided by partner State Govts./SEBs on transfer basis. However, in the event of inability of partner States/SEBs to provide the requisite staff, BBMB resorts to direct recruitment & promotion in respect of Group C & D employees only as Officers of Class A & B category are being provided by partner States/SEBs. BBMB Class III and Class IV Employees (Recruitment & Conditions of Service) Regulations, 1994 were approved by the Central Govt. & published in Part-III Section 4 of the Gazette of India dated As per Regulation 11 of these Regulations, the members belonging to SC, ST, BC, Ex-servicemen, Physically handicapped persons and the dependents of deceased employees in the service shall have the reservation in the service & all other concessions as prescribed by the Punjab Govt. from time to time. Accordingly, in view of provisions of Rule 6 of BBMB Rules, 1974 and Regulation 11 of BBMB Class III & Class IV Employees (Recruitment and Conditions of Service) Regulations, 1994, BBMB is following the reservation policy of Punjab Govt. issued from time to time in regard to implementation of provision of reservation in jobs for physically handicapped persons. According to the instructions of the Punjab Govt., 3% vacancies to be filled up by direct recruitment are reserved for physically handicapped persons 1% each in the category of blind, deaf & dumb and orthopaedically handicapped. Instructions have been issued to all CEs that the policy instructions of Punjab Govt. regarding reservation for persons with disability issued from time to time may be followed strictly at the time of making direct recruitment and also to ensure that reservation of persons with disabilities does not lapse. Representation of Physically Challenged Employees in BBMB is shown below: Group Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees A B C D Total BUREAU OF ENERGY EFFICIENCY Representation of physically Challenged Employees is indicated below:- Group Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees A B C % D Total % 75

82 CENTRAL POWER RESEARCH INSTITUTE Total Physically Challenged Employees Percentage of Employees Physically Challenged (as on ) VH HH OH Total employees Total % The number of physically challenged employees in the Institute as on is 16 out of 684. NATIONAL POWER TRAINING INSTITUTE Total Percentage of Physically Challenged Employees Employees Physically Challenged (as on ) VH HH OH Total employees Total % DAMODAR VALLEY CORPORATION Group Total Percentage of Physically Challenged Employees Employees Physically Challenged (as on ) VH HH OH Total employees Group A Group B Group C & D Total % 76

83 CENTRAL ELECTRICITY AUTHORITY REPRESENTATION OF THE PERSONS WITH DISABILITIES DIRECT RECRUITMENT PROMOTION Group Number of employee No. of Vacancies No. of Appointment Made No. of Vacancies No. of Appointment Made reserved reserved Total VII HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH Group-A 408 Nil 1 Nil Nil 1 Nil 22 Nil 1 Nil Nil Nil Nil Nil Nil Nil Nil Group-B 364 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Group-C 304 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Group-D 192 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil TOTAL 1268 Nil 1 Nil Nil 1 Nil 22 Nil 1 Nil Nil Nil Nil Nil Nil Nil Nil Note : (i) VH stands for visually Hadicapped (Persons suffering from blindness or low vision) (ii) HH stands for hearing Handicapped (persons suffering from hearing impairment) (iii) OH stands for Orthopaedically hadicapped (persons suffering from locomotion Disability or cerebral palsy.) 77

84 CHAPTER - 18 WELFARE OF SCHEDULED CASTES, SCHEDULED TRIBES AND OTHER BACKWARD CLASSES MINISTRY OF POWER An SC/ST Cell has been functioning in the Ministry since the early nineties under the direct control of the Deputy Secretary (Administration) who is also the Liaison Officer for Scheduled Castes and Scheduled Tribes. SC/ST Cell also assists the Liaison Officer for OBCs. The Cell monitors the implementation of reservation policies of the Government of India in respect of Scheduled Castes, Scheduled Tribes, Other Backward Classes, Physically Handicapped and Ex- Servicemen in the Ministry as well as Autonomous Bodies/ CPSUs under the administrative control of the Ministry of Power. 2. The total strength of employees and representation of Scheduled Castes, Scheduled Tribes and Other Backward Classes in the Ministry of Power as on is indicated in the following statement: Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Group A Group B Group C Group D Excluding sweepers Group D (Sweepers) TOTAL With a view to ensure proper implementation of reservation policy, annual inspections of reservation rosters maintained by the various organizations under its administrative control, were carried out by the Liaison Officer (SC/ST) and the inspection reports sent to the concerned Appointing Authorities for rectifying the discrepancies found during inspection. During inspections, LO(SC/ST) also had NTPC Limited Group Total number of Employees (as on ) interactions with employees belonging to reserved categories. These interactions helped to obviate many of their misconceptions/misapprehensions and promote better understanding of the reservation policy of the Government. 4. The schemes, as recommended by the Government for the welfare of the minorities from time to time, are implemented. Representation SCs SCs % STs STs % OBC OBC % A B C D(ES) D(S) Total

85 NHPC Ltd. WELFARE OF SC/ST & OBC NHPC is taking care for socio-economic developments of SC / ST and weaker category sections of the societies at various Projects / Power Station situated in remote areas of the Corporation. NHPC provides budget allocation for Schools and Colleges at various SC / ST / OBC populated locations of the NHPC Projects / Power Stations. The Medical facilities are also being provided to all the weaker sections and SC / ST / OBC people where it is necessary. During natural calamities / epidemic NHPC helped in different ways and organized medical camps also. The reservation and relaxation is provided to SC / ST and OBCs in direct recruitment as per guidelines issued by DoPT from time to time. The relaxed standard is applicable for SC / ST employees while considering promotion. The Organization holds periodical meetings with SC / ST employees. A SC / ST cell is set up for the welfare of SC / ST and OBCs under the direct control of separate liaison officers for SC / ST and OBC. A table showing representation of SC/ST/OBC Employees is as under Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Total % % % POWER GRID CORPORATION OF INDIA LTD. Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % A B C D TOTAL POWER FINANCE CORPORATION LTD. PFC as a part of its social responsibility makes all-out efforts to ensure compliance of the Directives and Guidelines issued by the Government for the reservation to be allowed for SC, ST and OBC. The steps taken include due reservations and relaxation as applicable under the various directives. Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Group A % % % Group B % % Group C % % Group D % Total % % % 79

86 RURAL ELECTRIFICATION CORPORATION LTD. Representation of SC/ST/OBC Employees is indicated below:- Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % A B Nil - C D Total NEEPCO: Representation of Schedule Caste/ Schedule Tribe/ OBC Employees in NEEPCO as on is as follows. Total number of Employees Representation of SC/ST/OBC SC ST OBC TOTAL Nos. Nos. % Nos. % Nos. % Nos. % SATLUJ JAL VIDYUT NIGAM LIMITED Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Total Human Resources The total man power on the rolls of SJVN was 1746 as on 31st March 2009 as against 1652 as on 31st March The strength of SC, ST and OBC employees as on the above date was 386,114 and 114 respectively. Human Resources Development SJVN believe that employees are its most valuable assets and has evolved growth oriented human resource development strategy. TEHRI HYDRO DEVELOPMENT CORPORATION LTD. Representation of SC/ST/OBC is indicated below Total number of Employees (as on ) Empowerment of manpower skills through training, receives utmost importance all the time. The Company has well established strategy for imparting training to the employees and involved other professional people to motivate the employees for good working. The training imparted is twodimensional i.e. by giving in-house training and through external professional institutions as well. We also facilitate the professional candidates of various institutions for undergoing vocational training in this organization. Representation SCs SCs % STs STs % OBC OBC % Total

87 BHAKRA BEAS MANAGEMENT BOARD BBMB discharges its functions as laid down in Section 79(1) of the Punjab Re-organisation Act, 1966 for which staff for the operation & maintenance of BBMB work is provided by partner State Governments/ State Electricity Boards on transfer basis. However, in the event of inability of partner States/State Electricity Boards, BBMB resorts to direct recruitment and promotion in respect of Group C & D employees, as officers of Group A & B category are being provided by partner States/ SEBs. BBMB Class III & Class IV Employees (Recruitment and Conditions of Service) Regulations, 1994 were approved by the Central Government and published in Part-III, Section 4 of the Gazette of India dated As per Regulation 11 of these Regulations, the members belonging to SC, ST, BC, Ex-servicemen, Physically handicapped persons and the dependents of deceased employees in service shall have the reservation in service and all other concessions as prescribed by the Punjab Govt. from time to time. Accordingly, in view of provisions of Rule 6 of BBMB Rules, 1974 and Regulations 11 of BBMB Class III & Class IV Employees (Recruitment & Conditions of Service) Regulation, 1994, BBMB is following the reservation policy of Punjab Govt. issued from time to Representation of SC/ST/OBC is indicated below:- time in regard to implementation of provision of reservation in jobs for SC/ST. The prescribed percentage of reservation applicable in BBMB in favour of SC as per Punjab Govt. instructions is as under:- i) Posts filled by direct recruitment = 25% ii) Posts filled by promotion = 20% There is no reservation for ST category in Punjab Govt. Therefore, no post is being reserved for ST category in BBMB. For providing general welfare measures for SC employees, instructions have been issued to all field offices requesting them to provide the following facilities, if so demanded by the members of SC on the occasion of Birthday of Dr.B.R.Ambedkar, Maharishi Balmiki Ji and Sri Guru Ravi Dass Ji:- i) Bus facilities for Shobha Yatra at token charges of Re.1 per km. ii) Auditorium for function on above occasions, free of charge. In addition to above, BBMB has given representations to the members of the Scheduled Castes by nominating one SC member of the rank of Addl. SE/Senior Executive Engineer in all Selection Committees. Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % A B C D Total BUREAU OF ENERGY EFFICIENCY Representation of SC/ST/OBC is indicated below:- Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % A % B C D Total %

88 CENTRAL POWER RESEARCH INSTITUTE Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Total % % % Representation of Scheduled Caste, Scheduled Tribes and OBC in the Institute as on is SC 24.85%, ST 10.67% and OBC 5.26%. NATIONAL POWER TRAINING INSTITUTE Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Total % % % DAMODAR VALLEY CORPORATION Representation of SC/ST/OBC Group Total number of Employees (as on ) Representation SCs SCs % STs STs % OBC OBC % Group A Group B Group C & D Total CENTRAL ELECTRICITY AUTHORITY Representation of SC/ST/OBC Number of appointments made during the previous calender year Group Number of Employee By Direct recruitment By Promotion By other methods Total number SCs STs ORCs Total SCs STs OBCs Total SCs STs Total SCs STs of employees Group-A Nil Nil Nil Group-B Nil Nil Nil Nil Nil Nil Nil Group-C Nil Nil Nil Nil 7 3 Nil Nil Nil Nil Group-D Nil Nil Nil Nil 6 1 Nil Nil Nil Nil Group-D Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil TOTAL Nil Nil Nil 82

89 CHAPTER - 19 CENTRAL ELECTRICITY AUTHORITY 1. CONSTITUTION OF CEA The Central Electricity Authority (CEA) is a statutory organisation originally constituted under Section 3(1) of the repealed Electricity (Supply) Act, 1948 since substituted by Section 70 of the Electricity Act, It was established as a part- time body in the year 1951 and made a full- time body in the year As per section 70(3) of the Electricity Act, 2003, Authority shall consist of not more than 14 members (including its Chairperson) of whom not more than 8 are full-time members who are appointed by the Central Government from amongst the eminent engineers/executives having knowledge and experience in various areas of Power Sector. CEA is headed by a Chairperson who oversees largely the development of Power Sector in the country. A Secretary, appointed by the Authority with the approval of the Central Government under section 72 of Electricity Act 2003, assists him in the discharge of CEA s statutory functions. The Secretary also assists the Chairperson in all matters pertaining to administration and technical matters including Human Resource Development and techno-economic appraisal & concurrence of power projects etc. Presently, there are six wings namely Planning, Hydro, Thermal, Grid Operation & Distribution, Economic & Commercial and Power System each headed by a Member of the Authority. Under each Member, there are technical Divisions each headed by an officer of the rank of Chief Engineer. 2. FUNCTIONS OF CEA The functions and duties of the Authority are delineated under Section 73 of the Electricity Act, Besides, CEA has to discharge various other functions as well under Section 3, 7, 8, 53, 55 and 177 of the Act. During the year (up to ), two Regulations viz. Regulations on Measures relating to Safety and Electricity Supply and Regulations on Grid Standards for Operation & Maintenance of Transmission Lines have been sent to MoP for vetting and approval. The Regulations on Technical Standards for Constructions of Electrical Plants and Electric Lines and the Regulations on Safety Requirements for Construction, Operation & Maintenance of Electrical Plants and Electric Lines are being finalized considering the comments/suggestions of various stakeholders in the Power Sector. TECHNO-ECONOMIC APPRAISAL OF POWER DEVELOPMENT SCHEMES The Central Electricity Authority, has been according Concurrence/ Appraisal to hydro generation schemes under the provisions of The Electricity Act, During the year , Central Electricity Authority accorded Concurrence to 05 Hydro Generating Scheme, the details of these schemes are given below:- DETAILS OF HYDRO SCHEMES CONCURRED/APPRAISED BY CEA DURING (UPTO ) Sl. No. Name of Scheme/ State / Installed Capacity Estimated cost Date of Executing Agency (MW) Concurrence by CEA 1. Dibang MPP in Arunachal 12x250=3000 Rs Crores Pradesh by M/s. NHPC Ltd. (at Nov.'07 Price Level) 2. Gundia HEP in Karnataka by 1x200=200 Rs Crores M/s. KPCL (at Nov.'07 Price Level) 3. Singoli Bhatwari HEP in 3x33=99 US $ Million Uttarakhand by M/s. L&T Rs Crores Uttaranchal Hydro Power Ltd. (ER = Rs.39.60/US $) (estimated completed cost) 4. Alaknanda HEP in Uttarakhand 3x100=300 US $ Million by M/s. GMR Energy Ltd. Rs Crores (ER = Rs.40.43/US $) (estimated completed cost) 5. Rupsiabagar Khasiyabara HEP in 3x87=261 US$ Million Uttarakhand by M/s. NTPC Ltd. Rs Crores (ER = Rs.42.70/US $) (at May'08 Price Level) 83

90 DETAILS OF HYDRO SCHEMES EXPECTED TO BE CONCURRED/APPRAISED BY CEA DURING REMAINING PERIOD OF (UPTO 31ST MARCH.09.) Sl. No. Name of Scheme/ State / Installed Capacity Estimated cost Executing Agency (MW) (Rs. Crores) 1. Siang Lower HEP in Arunachal Pradesh by 8x300=2400 Rs crs. M/s Jaiprakash Ventures Ltd. (estimated completed cost) Renovation & Modernisation of Hydro Electric Power Projects a) R&M Phase-I Programme: Recognising the benefits of the R&M programme, Govt. of India set up a National Committee in 1987 to formulate strategy on R&M of hydro power projects. Based on the recommendations of the National Committee and subsequent reviews, a programme for renovation, modernization and uprating of Hydro Power Stations was formulated by Central Electricity Authority in which 55 schemes were identified with an aggregate capacity of 9653 MW. The total cost of these schemes was estimated as Rs.1493 Crores with expected benefit of 2531 MW. b) R&M Phase-II Programme: As per the hydro policy of Govt. of India, declared in 1998, renovation & modernization of Hydro Power Plants accorded priority. Accordingly, 67 hydro R&M schemes having an aggregate capacity of MW were identified to be undertaken under Phase-II programme till the end of Xth Plan to accrue a benefit of 3685 MW at an estimated cost of Rs Crores. c) National Perspective Plan: CEA formulated the National Perspective Plan for hydro power stations in the year 2000 and incorporated R&M proposals under Phase-II programme alongwith the left out schemes as recommended in phase-i programme of National Committee. The left out schemes were those which were either under implementation or were yet to be implemented. This Perspective Plan was for IXth, Xth and XIth Plan 117 schemes having an aggregate installed capacity of MW with benefit of 7755MW at an estimated cost of Rs.4654 crores. d) VIIIth, IXth and Xth Plans Achievements: Under the hydro R&M programme, 65 (15 in Central Sector and 50 in State Sector) hydro electric schemes (13 upto the VIIIth Plan, 20 in the IXth Plan and 32 in the Xth Plan) with an installed capacity of MW at a cost of Rs.1,727 Crores have been completed by the end of the Xth Plan (i.e. by ) & have accrued a benefit of 2351 MW through Life Extension, Uprating and Restoration. e) XIth & XIIth Plan Programme: For the XIth Plan initially a total of 62 hydro R&M schemes were programmed with an installed capacity of about MW at an estimated cost of Rs. 4,024 Crores to accrue a benefit of about 4392 MW to Life extension, uprating and restoration. Based on the discussions with State Electricity Boards/Utilities in April/ May 2008, 2 (Two) schemes mainly Jawahar Sagar (3x33 MW) and Rana Pratap Sagar (4x43 MW) of Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRUVNL) were dropped due to disagreement problems between Rajasthan and Madhya Pradesh. Further, 4 (Four) schemes viz. Hampi (2x9 MW+2x9 MW), Machkund (3x17 MW + 3x21.25MW) and Tungabhadra (2x9 MW+2x9 MW) of APGENCO and one scheme viz. Sholayar-I (2x35 MW) of TNEB were shifted to XIIth plan on the request of Project authorities as the generating units were running satisfactorily. Thus 56 hydro R&M schemes having an installed capacity of about MW at an estimated cost of Rs Crores were programmed to accrue a benefit of about 4099 MW through Life Extension, Uprating and Restoration. During two years of XIth Plan, 5 schemes (1 in Central Sector and 4 in State Sector) with an installed capacity of 854 MW at a cost of about Rs. 137 Crs. have been completed and have accrued a benefit of 50 MW through Life Extension & Uprating. The R&M works on balance 51 Ongoing schemes are under various stages of implementation Further, 22 nos. of hydro electric schemes having an installed capacity of 2467 MW, which were programmed for completion during XIth Plan, have been shifted to XIIth Plan, as RLA studies could not be completed or units are running comparatively satisfactorily. On completion of the R&M works of these schemes, there will be a benefit of 2246 MW through Life Extension and Uprating at an estimated cost of Rs Crs. (provisional). 84

91 f) Plan-wise summary of hydro R&M schemes (as on ) i) Hydro R&M schemes completed up to Xth Plan : Sl. Plan Period Nos. of Projects Installed Estimated Actual Benefit No Capacity Cost Expenditure (MW) Central State Total (MW) (Rs. in Crs.) (Rs. in Crs.) Sector Sector 1. Upto VIIIth Plan Schemes completed 2. IXth Plan Schemes completed 3. Xth Plan Schemes completed ii) Hydro R&M schemes planned during XIth Plan : Sl. Plan Period Nos. of Projects Installed Estimated Actual Benefit No Capacity Cost Expenditure (MW) Central State Total (MW) (Rs. in Crs.) (Rs. in Crs.) Sector Sector a) Programmed (Revised) b) Completed c) Ongoing d) Under Tendering e) Under DPR Finalisation (Till date) f) Under RLA Studies iii) Hydro R&M schemes programmed for XIIth Plan : Sl. Plan Period Nos. of Projects Installed Estimated Actual Benefit No Capacity Cost Expenditure (MW) Central State Total (MW) (Rs. in Crs.) (Rs. in Crs.) Sector Sector a) Programmed Abbreviations: MW Mega Watt; Res. Restoration; U Uprating; LE Life Extension Note:- Installed capacity, Benefit & cost rounded to nearest zero. g. Programme for the year During the year , it was programmed to complete 9 schemes having an installed capacity of about 3009 MW. On completion of these schemes, there will be a benefit of 655 MW through Life Extension and Uprating at an estimated cost of about Rs. 266 Crores. 85

92 S.No. Name of Scheme(I.C. in MW),Agency 1. Khodri, Ph.A (4x30), UJVNL 2. Chilla, Ph.A (4x36), UJVNL 3. Lower Sileru(4x115), APGENCO 4. Upper Sileru (4x60), APGENCO 5. Srisailam RB (7x110), APGENCO 6. Koyna St.I & II(4x70 + 4x80),MSPGCL 7. Koyna St-III (4x80), MSPGCL 8. Lingnamakki (2x27.5), KPCL 9. Sabarigiri (6x50), KSEB h (i) Achievement during the year The following three schemes of state sector having an aggregate installed capacity of about 720 MW have been completed during the year at an actual cost of Rs. 101 Crores. These schemes are for R&M benefits. Sl. No. Name of Scheme, (I.C. in MW), Agency 1. Khodri, Phase-A (4x30), UJVNL 2. Chilla, Phase-A (4x36), UJVNL 3. Koyna Stage-I & II (4x70 + 4x80),MSPGCL i. Other Misc. works undertaken/completed in i) Enquiry Committee for damage of 50 MW generator of Sabirigiri HEP (Kerala)- An enquiry committee was formed under the Chairmanship of C.E.(HE&RM) to find the reasons for damage to generating Unit No. 4. The committee submitted the report to KSEB identifying the causes of damages of Unit. ii) Renovation and Modernisation of Umium-II H. E. Project CEA assisted MeSEB in finalization of revised qualifying requirements and tender documents for early completion of R&M works of the above project. Based on the inputs of CEA, MeSEB issued the Notice Inviting Tender (NIT) and award of works by MeSEB is under progress. iii) A Team of officers from CEA alongwith officers of CWC & CWMRS have visited the Khandong H. E. Power station (2x25 MW) of NEEPCO for assessing the damage/effect of acidic water on civil structures and under water parts of the machines. j. Programme for the year During the year , it is programmed to complete 12 schemes having an installed capacity of 4942 MW. On completion of these schemes, there will be a benefit of 692 MW through Life Extension and Uprating at an estimated cost of about Rs. 241 crores (till date actual expenditure of Rs. 103 crores has been incurred). S.No. Name of Scheme (I.C. in MW), Agency 1. Dehar Phase-A (6x165), BBMB 2. Dehar Phase-B (6x165), BBMB 3. Lower Sileru (4x115), APGENCO 4. Upper Sileru (4x60), APGENCO 5. Srisailam RB (7x110) ), APGENCO 6. Nagjhari, U1 to U6 (3x x135), KPCL 7. Sharavathy Ph.B (10x103.5). KPCL 8. Supa, (2x50) KPCL 9. Lingnamakki (2x27.5), KPCL 10. Jaldhaka St. I (3x9), WBSEB 11. Koyna St-III (4x80), MSPGCL 12. Loktak (3x30), NHPC RESEARCH AND DEVELOPMENT PERSPECTIVE PLAN FOR RESEARCH & DEVELOPMENT A Standing Committee on R&D headed by Chairperson, CEA for preparation of a Perspective Research and Development Plan for next 15 years and to make recommendations from time to time for optimum utilization of infrastructure, raising of funds and to ensure that the outcome of research results in benefits to the customers and the operational efficiency of the sector, was constituted by the Ministry of Power in Feb A SFC memo for 8 such R&D projects, approved by the Standing Committee, was forwarded to Ministry of Power for allocation of fund. The Standing Finance Committee of Ministry of Power approved 6 of these projects to be taken up for R&D. Three of these projects where the beneficiaries of the projects were contributing towards the cost of the project, were approved and have been taken up. The seven Task Forces which were constituted to assist the Standing Committee on R&D (SCRD) has been entrusted with identification of the areas of R&D as well the specific R&D projects to be taken up during 11th Plan period in their respective fields. The Task Forces are to guide formulation of projects in these identified R&D areas and to monitor the progress of R&D Projects taken up. 43 number of R&D projects are under examination by the Task Forces, that can be taken up during the 11th Plan period. Most of the Task Forces have convened their meetings several times and are examining the received projects proposal. In order to speed up the process of identification of R&D projects, a meeting was chaired by Chairperson CEA on 26th February 2008 wherein eight R&D projects were 86

93 presented by the project proponents. Afterwards on 26th 27th May 2008 at CPRI, Bangalore two new projects were presented by the project proponents. 12th meeting of standing committee on R&D is likely to be held. CEA CHAIRS AT IIT, DELHI An MOU exists between CEA and the Indian Institute of Technology, Delhi for creation of two CEA Chair Professorships, one in the Center for Energy Studies alternatively Department of Mechanical Engineering and the other in Electrical Engineering Department, to fulfill following objectives concerning Power Sector. To take part in the academic programs of IIT, Delhi, as full time professors/faculty in the Center for Energy Studies alternatively Department of Mechanical Engineering and Electrical Engineering Department and coordinate HRD programs in the frontier areas of Power Management. To develop R&D programs relevant to the needs of CEA and in areas defined in the appendix to the MOU (subject to need based revision.) To initiate and develop HRD programs relevant to the needs of CEA and to coordinate courses for any batch of students from the CEA. Under the programme, a number of topics for research have been forwarded to IIT, Delhi. A total number of 8 officers of CEA, Ministry of Power and NPTI are pursuing M.Tech and PhD courses at IIT, Delhi under the chairs. This would accrue benefits to the Power Sector in long run. Till date 8 No. of officers have completed M. Tech from IIT Delhi. Two officers, one from CEA and the other from NPTI has selected for admission to M. Tech programme for the academic session by IIT Delhi. PREPARATION OF DATA BASE The data/information regarding R&D work in power sector being carried out by various agencies/organizations in Private and Government Sectors in India was obtained and compiled in the form of a Directory and is available on CEA Website. The Directory has been updated based on the revised information obtained from various Research Organizations. INNOVATIVE R&D PROPOSALS Work regarding promotion of innovative methods of electricity generation continued and 12 Nos. of proposals received, from individuals through MoP, PMO. President Secretariat, were examined and commented upon. DETAILS OF HYDRO SCHEMES CONCURRED/APPRAISED BY CEA DURING (UPTO ) No Title of the Project Project Funds Released to Status of the project Implementing lead agencies till organization March 2008 (Rs. Lakh) 1 Development of DVR C-DAC, Rs. 165 lakh Committee suggested based voltage source Trivandrum 2 Years inclusion of Hindustan stabilizers for process Latex Limited as joint industry partner in this project Suggested to re-cast the proposal and submit 2 Voltage sag ride through TNEB,TATABAD Rs. 165 lakh Committee suggested improvement of modern Coimbatore 2 Years inclusion C-DAC as AC drives partner in this project Suggested to re-cast the proposal and submit 87

94 CHAPTER - 20 CENTRAL ELECTRICITY REGULATORY COMMISSION The Central Electricity Commission (CERC) an independent statutory body with quasi-judicial powers, was constituted on 25th July, 1998 under the Electricity Regulatory Commission s Act, 1998 and has been continued under Electricity Act, The Commission consists of a Chairperson and four other Members including the Chairperson, CEA as the Ex-officio Member. The functions of CERC include inter alia tariff regulation regulation of tariff of (i) generating companies owned or controlled by the Central Government, (ii) other generating companies having a composite scheme for generating and sale of electricity in more than one State, (iii) inter-state transmission of electricity regulation of inter-state transmission of electricity; granting licence for inter-state transmission and inter- State trading in electricity; adjudication of disputes; specifying Grid Code specifying and enforcing the standards with respect to quality, continuity and reliability of service by licensees; fixing trading margin in the inter-state trading of electricity, if considered, necessary; The Commission also has advisory functions (i) on formulation of National Electricity Policy and Tariff Policy; (ii) promotion of competition, efficiency and economy in the activities of the electricity industry; (iii) promotion of investment in electricity industry; (iv) any other mater referred to the Central Commission by the Central Government. Activities I. Regulations on terms and condition of tariff for generation and transmission The Commission issued the Tariff Regulations for generation and transmission projects for the period These regulations would also be the guiding principles for the State Electricity Regulatory Commissions. The regulations aim at attracting much desired investment in power infrastructure in the country while ensuring that the consumers get electricity at reasonable cost. The following are the important features of the new regulations: Balance between investment promotion and protection of consumer interest Light handed regulation based on norms. Norms aimed at inducing efficiency in operation, are relatable to past performance, and do take into consideration latest technological advancements, fuel, vintage of equipments. Regulatory certainty through multi-year principles. Base rate for allowing return on equity raised from 14% to 15.5% to attract investment. Additional 0.5% for timely completion of projects. o o Base rate to be grossed up by applicable tax rate for the company. Benefit of tax holiday to be available to the project developer. Depreciation rates for initial 12 years approximate 5.28% o Spread over beyond 12 years. No provision for Advance Against Depreciation (AAD) Specific provisions to boost development of hydro projects: Tariff for hydro projects has been restructured to incentivise supply of peaking power. Norms of operation tightened based on actual performance, with room for gains for efficiency improvements. Target availability for recovery of fixed cost for thermal plants raised from 80% to 85%. Station heat rate, tightened for existing stations For new stations, a new methodology with operating margin of 6.5% with respect to design heat rate. o Maximum permissible heat rate to ensure that inefficient machines are not procured. 88

95 Norm for secondary fuel oil consumption reduced from 2 ml per unit to 1 ml per unit. Savings in secondary fuel oil consumption to be shared with the beneficiaries in the ratio of 50:50. Thermal power projects to have two options to take care of R&M beyond useful life: o o Option-I : Special allowance on the basis of per MW per year. Option-II : Comprehensive R&M with cost benefit analysis Incentive has been linked to availability, to incentivise higher availability (instead of plant load factor) of power plants. Upfront tariff fixation for regulatory certainty. Truing up along with next tariff period. II. Unscheduled Interchange charges and related matters Regulations, Central Electricity Regulatory Commission (CERC) has notified new regulations on Unscheduled Interchange for electricity grid operations and also the amendments to Indian Electricity Grid Code (IEGC). Both these regulations have come into force w.e.f. 1st April, The main objectives of the restructuring of UI regime are to enforce grid discipline and to rationalize the UI rates for the entities who abide by the specified grid operation parameters. Simultaneously, CERC has also narrowed down operational frequency range for the Indian Electricity Grid with the objective of improving the quality of supply. Sending a clear message that UI is not a route for trading of electricity, CERC has for the first time specified limits for the overdrawl from the grid within the permissible operating range. This is in accordance with the philosophy that main purposes of UI are enforcing grid discipline and providing for settlement rates for unintended UI Interchanges. This step should force the distribution utilities to go for planned procurement of electricity and thereby creating environment for investors to set up new power plants. Presently, many utilities postpone setting of power projects and rely on overdrawals from the grid for meeting the consumers demand. The other main features of the new regulations are: a) The entities overdrawing from the grid below the permissible frequency of 49.2 Hz would be required to pay additional UI charge. b) Even for the operations within the permissible frequency range, overdrawl beyond the permissible limits would make the entities and the officer incharge such as CEO or MD liable for penal action under sections 142 and 149 of the Electricity Act, c) The UI rates for the generators where tariff is regulated by the Commission have been made symmetrical for over generation and under generation. d) CERC would review the UI charges and the additional UI surcharge rate every six months or earlier, if required, keeping in view the prevailing fuel prices and the requirements of maintaining grid discipline. e) Any surplus amount left in UI pool is to be used for supporting the transmission schemes of strategic importance or for providing ancillary services by the grid operators. III. A new Inter-State Trading Regulation 2009 The new Trading Regulations aim to tighten the terms & conditions for grant of trading licence keeping in view current price of the trading power, liquidity requirements of the power trading business and to encourage the only serious players intending to undertake trading business. Power having been imported from other countries for resale in the domestic market is also covered under these regulations. IV. Benchmarking of capital cost The Tariff Regulations for the period issued by the Commission provide that in case of the thermal generating station and the transmission system, prudence check of capital cost may be carried out based on the benchmark norms to be specified by the Commission from time to time. In line with the above requirement a study has been commissioned to evolve capital cost benchmark for generation and transmission projects. V. Transmission pricing The NEP and Tariff Policy provide that prior agreement with beneficiaries should not be pre-condition for network expansion. There is, therefore, a need for evolving a framework where need based network expansion can be planned and executed and once the system is ready, transmission charges may be shared in the pre-specified manner. CERC has commissioned a study for suggesting various options for sharing of transmission charges and assisting the Commission to choose one that best suits in Indian conditions. The Commission would come up with a regulation in this context. VI. Renewable Tariff Regulations The process of formulating a separate tariff regulation for renewables has been initiated. The objective is to set cost 89

96 plus preferential tariff during the loan period, based on benchmark capital cost for different technologies with provision for escalation linked to appropriate indices. VII. Monthly report on short-term transactions of electricity A Market Monitoring Cell (MMC) was set up in CERC in August Monthly report on short-term transactions of electricity is prepared and posted on the website. The objective of the report is to see the trends in volume and price of the short-term transactions of electricity (i.e. the electricity transacted through Trading Licensees, Power Exchanges and Unscheduled Interchange) in India. The report is mainly based on the data collected from Inter-State Trading Licensees, Power Exchanges (Indian Energy Exchange Ltd and Power Exchange India Ltd) and National Load Despatch Centre (NLDC) as per the formats prescribed by MMC. Key findings of the report of December, 2008 are as under: The percentage of short-term transactions of electricity (i.e. the electricity transacted through Trading Licensees, Power Exchanges and UI) to total electricity generation was 8.10%. The price of electricity transacted through trading licensees is comparable with the price of electricity transacted through Power Exchanges and UI. The price range was between Rs Rs.8.00 per KWh. The gap between the volume of buy bids and sale bids placed through power exchange shows that there was more demand (1.04 times) when compared with the supply offered through IEX and it was less demand (0.87 times) when compared with the supply offered through PXIL. VIII. Statutory Advice The Commission has tendered statutory advice to the Government under section 79 (2) of the Act on the need for formulating a suitable regulatory framework for regulating the sale of free power by states. While considering the issues on the staff paper on measures for restraining the prices of electricity in short term sale / trading, the Commission ruled that The State Governments receiving free power from the hydro power generating stations, in exercise of their discretion, may sell such electricity to thedistribution licensees, the electricity traders, in addition to the consumers. Though the Central Government has specified the regulatory framework for fixation of tariff for sale of such electricity by the State Governments to the distribution licensees, there does not appear to be any mechanism available with the Commission to regulate price for sale of such electricity when sold to the distribution licensees of other states or trading licensees because the state government receiving free power is neither a generating company nor a licensee.. Needless to say, such short term sales by State Governments play a crucial role in the market. In the absence of a regulatory mechanism for this kind of transaction, the desired purpose of regulation of prices of electricity under the Act may not be achieved. In these circumstances, we would like to advise the Ministry of Power, Govt. of India to devise an appropriate statutory mechanism for regulation by this Commission of price for sale of such electricity by the State Governments to the distribution licensees of other states or trading licensees. IX. Activities of Forum of Regulators (FOR) Chairperson, CERC is the Chairperson of FOR. During the period from April 2008 to March 2009 five meetings of the Forum have been held. The Forum constituted working groups on issues of critical importance facing the sector, e.g. open access, consumer protection, loss reduction strategy, promotion of renewable, multi-year tariff principles and distribution margin, demand side management, staffing. Based on the inputs of the working groups the Forum finalized the reports on these issues. The reports, while analyzing the issues at stake in the context, have charted out an action plan for various stakeholders for making the vision of the Act and the Policies a reality. 90

97 CHAPTER - 21 APPELLATE TRIBUNAL FOR ELECTRICITY The Appellate Tribunal for Electricity (APTEL) has been setup under the provisions of the Electricity Act, 2003 (section 110) with all India jurisdiction and it started functioning on 21st July, The Tribunal is presently located at 7th Floor, Core-4, SCOPE Complex, Lodhi Road, New Delhi. APTEL is headed by a Chairperson who has the status of a sitting judge of the Supreme Court. Hon'ble Mr. Justice M. Karpaga Vinayagam is the Chairperson of the Tribunal. Hon'ble Ms. Justice Manju Goel is the Judicial Member of the Tribunal. There are two Technical Members, namely, Hon'ble Mr. H.L. Bajaj and Hon'ble Mr. A.A. Khan. The Tribunal has also been conferred jurisdiction under the Petroleum and Natural Gas Regulatory Board Act, 2006 to hear appeals against the orders/decisions of the Petroleum and Natural Gas Regulatory Board set up under the Act Hon'ble Mr. Mahesh B. Lai is the Technical Member (P&NG). APTEL hears and disposes of appeals filed against the orders of the Central Electricity Regulatory Commission, State Electricity Regulatory Commissions, Joint Commissions and Adjudicating Officers. Subsequent to the setting up of APTEL, the appeals pending in the High Courts of all States except the State of Jammu & Kashmir on the subject were also transferred to this Tribunal. Proceedings are conducted in two Courts, each Court consisting of one Judicial Member and a Technical Member. As on 31st March, 2009, of 1801 petitions/matters etc. that have been filed to date, 1347 have already been disposed of. The website of the Tribunal ( is providing easy access to the daily cause lists and judgments/orders. 91

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99 PUBLIC SECTOR UNDERTAKINGS 1.0 With a view to supplement the efforts of the States for quicker and greater capacity addition, Electricity (Supply) Act of 1948 was amended in 1975 to facilitate establishment of large regional power stations in the central sector. In the same year, National Thermal Power Corporation Ltd. was incorporated in November, 1975 with the mandate for planning, promoting and organising integrated development of thermal power (including Associated Transmission Systems) in the country. In 2004, NTPC became a Listed Company with majority government ownership of 89.5% and became third largest by Market Capitalization of Listed Companies. The Company has acquired a new identity, NTPC Limited in November, This new identity signifies that the Company has diversified its operations beyond thermal power segment and has added new business activities by way of forward, backward and lateral integration, to be an integrated power company with presence across entire energy value chain. Today NTPC Ltd. is the leading power generating schedule A Navratna Company of Government of India with a diversified portfolio. NTPC Ltd. has a vision to become A World class integrated power major, powering India s growth, with increasing global presence. The total approved investment of the Company as on stands at Rs crores. Presently, NTPC has to its credit coal based thermal power stations at 15 locations and gas/ liquid fuel based combined cycle power stations at 7 locations. The commissioned capacity of these NTPC owned stations is 27,850 MW. In addition to this, 2,294 MW generation capacity has been acquired/ setup by NTPC under Joint Ventures at 4 locations. Thus total present installed generation capacity of NTPC is 30,144 MW as on (details enclosed at Annexure-I). 2.0 NTPC PERFORMANCE HIGHLIGHTS FOR THE YEAR During the year , a record generation of Million Units was achieved, as against the last year s generation of Million Units registering an increase of 3.03% over last year. (During the period to , generation achieved was Million Units, as against Million Units during the same period last year). During the year , THIRTEEN NTPC coal stations achieved more than 85% PLF, TEN above 90% and FOUR above 95% : Dadri (Coal) (99.36%), Simhadri (97.41%), Rihand (97.23%), Korba (96.21%), Sipat (94.63%), Ramagundam CHAPTER NTPC LIMITED 93 (94.45%), Unchahar (93.73%), Vindhyachal (93.15%), Talcher (Thermal) (92.68%), Singrauli (90.72%), Tanda (89.40%), Badarpur (89.12%) and Talcher (Kaniha) (85.83%). Five coal stations of NTPC are among the top five of the six thermal power stations which have been given National Awards for Meritorious Performance for by Ministry of Power, GoI. The company is at present implementing Eighteen power projects with a capacity of MW. During the year , 1000 MW generation capacity was commissioned comprising one unit of 500 MW (unit No. 5) at Sipat-II and two units of 250 MW at Bhilai Expansion power project under Joint Venture. (During the period to , 500 MW generation capacity was commissioned comprising one unit of 500 MW (unit No. 6) at Kahalgaon-II). Mining Plans for Chatti-Bariatu (7 MTPA) & Kerandari (6 MTPA) coal blocks have been approved by MOC whereas for Dulanga coal block (7 MTPA), it is under approval. In December 2008, River Bhagirathi diverted at Loharinag-Pala and River Dhauliganga diverted at Tapovan-Vishnugad for construction of Barrage. MoA signed with Mizoram Govt. for implementation of Kolodyne Hydro Power Project 460 MW. MOU signed with ADB and three strategic investors for establishment of power generation capacity of about 500 MW through Renewable Energy Sources. JVA and Business Plan are being finalised. MoU signed amongst NTPC and Karnataka Power Corporation Ltd. (KPCL) for development of 500 MW wind farms. NTPC proposes to set up 4000 MW Project as regional Project at Kudgi in the State of Karnataka. An MOU has been signed on 12th January, 2009, amongst NTPC, Govt. of Karnataka and Power Company of Karnataka Ltd. in this regard. National Power Exchange Limited has been registered on to facilitate nation wide trading in all types of contracts for buying and

100 selling all form of energy % of Equity each is held by NTPC, NHPC and PFC and balance 50% Equity is held by TCS. During the year , NVVN traded MUs of power and transacted business with 30 State Utilities. (During the period to , NVVN traded MUs of power). Five joint venture companies have been formed during the year , namely Meja Urja Nigam Private Ltd., NTPC-BHEL Power Projects Private Ltd., BF-NTPC Energy Systems Ltd., Nabinagar Power Generating Company Private Limited and National Power Exchange. 3.0 NTPC STATIONS & GENERATION PERFORMANCE As on , a total capacity of MW is under operation at various NTPC stations. This comprises 35 units of 200/210 MW at Singrauli, Korba, Ramagundam, Farakka, Vindhyachal, Dadri, Unchahar, Kahalgaon, and Badarpur, 31 units of 500 MW at Singrauli, Korba, Ramagundam, Farakka, Vindhaychal, Rihand, Kahalgaon, Talcher-Kaniha Simhadri and Sipat, 6 units of 110 MW at Tanda and Talcher, 4 units of 60 MW at Talcher, 3 units of 95 MW at Badarpur and 22 Gas Turbines and 10 Steam Turbines at Anta, Auraiya, Kawas, Dadri, Jhanor Gandhar, Kayamkulam and Faridabad combined cycle power plants and 814 MW Captive Power Plants at Durgapur (2x60), Rourkela (2x60) and Bhilai (1x14 +2x30+2x250), under Joint Ventures with SAIL and 1480 MW (4x240+2x260 MW) Ratnagiri Gas and Power Private Limited under Joint Venture with GAIL and others. The generation performance of NTPC Stations has consistently been at high level. The gross generation from NTPC stations, excluding joint ventures, during the year has been MUs as against MUs Sl. No. Project 1. Power supply from existing and future projects for which DTL/ DVB/ DESU/ GNCT had earlier signed PPAs with NTPC. 2. Aravali STPP (3x500 MW) 3. Barh-II (2x660 MW) 4. Vindhyachal-IV (2x500 MW) 5. Rihand-III (2x500 MW) 6. Mauda (2x500 MW) generated during the same period last year. NTPC achieved a PLF of 91.14% with availability of 92.47% during the period. (During the period to , generation achieved was Million Units at a PLF of 98.38%, as against Million Units at a PLF of 96.11% during the same period last year). 4.0 COMMERCIAL PERFORMANCE Highlights of Commercial Performance during the year During the year ( Provisional), Settlement of Outstanding Dues of NTPC has been 100%. The amount billed for the financial year (provisional up to March 2009) was Rs Crs. with realization of Rs Crs. The balance payment is likely to be received in April 2009 thus leading to 100% realization. Commercial operation of new generation capacities was declared for Sipat Stage-II (1st 500 MW) w.e.f , for Kahalgaon Stage-II (1st 500 MW) w.e.f , for Kahalgaon Stage-II (2nd 500 MW) w.e.f and for Sipat Stage-II (2nd 500 MW) w.e.f Ministry of Power vide letter dated issued allocation of power from Bongaigaon Thermal Power Station (3x250 MW). 4.2 Status of PPAs As part of the efforts to ensure viability of its investment, the company continued its practice of signing PPAs for sale of power from New Projects. Following PPAs were signed during the period : Beneficiaries Discoms of Delhi (NDMC, NDPL, BYPL, BRPL & MES) Discoms of Delhi (BYPL, BRPL & NDPL), Discoms of Haryana (UHVVNL& DHBVNL) Orissa (GRIDCO), Gujarat (GUVNL) UT Chandigarh(UTC) Madhya Pradesh (MPPTCL), Chhattisgarh (CSEB), Daman & Diu (DD), Dadra Nagar Haveli (DNH), Goa, Maharashtra (MSEB), Gujarat (GUVNL) Discoms of Haryana (UHVVNL& DHBVNL), Uttarakhand(UPCL), UT Chandigarh, Discoms of Rajasthan, Discoms of Delhi (NDPL, BYPL & BRPL), Punjab (PSEB) Uttar Pradesh (UPPCL),Himachal Pradesh (HPSEB), Gujarat (GUVNL) 94

101 Smt. Veena Mehta Verma, Sr. Assistant Officer(HR) NTPC Vindhyachal received the National Award in the Role Model category from Hon ble President of India Smt.Pratibha Devisingh Patil. National Awards for Empowerment of Persons with Disabilities have been instituted by Ministry of Social Justice and Empowerment, Government of India. 4.3 Status of implementation of One-Time Settlement Scheme (OTS) a) Redemption of Bonds/ Long term advances Under One Time Settlement RBI has redeemed fifth and sixth installments (5% each) due on and against RBI bonds issued on behalf of State Governments amounting to Rs cr. Delhi Govt. has also paid fourth and fifth installment towards long term advance due on and amounting to Rs cr. b) Interest on Bonds/ Long term advances RBI has paid all interests on bonds issued under One Time Settlement Scheme fallen due on to amounting to Rs cr. Delhi Government has also paid interest payment due on and amounting to Rs cr. 4.4 Dues of DESU period The outstanding dues of Rs Crs. pertaining to the period up to payable by Govt. of NCT Delhi for DESU period to NTPC are under process of settlement. 4.5 Direct Payment against Billing of Bihar Government of Bihar is paying Rs. 60 Crs. per month w.e.f. April 2006 directly from RBI account to NTPC against monthly bills for energy supplied from NTPC stations to BSEB. 4.6 Customer focus Customer focus is a prime aspect of NTPC s business. Customer Relationship Management (CRM) system is one of the initiatives undertaken by NTPC towards strengthening relationship with customers. Under CRMS, regular structured interaction with customers takes place for sharing of feedback/ experiences/ expectations. These meetings provide a good platform for more interaction and sharing of experiences for mutual benefits. Based on the feedback received from the customers, NTPC provides various support services to them, identifies potential areas of cooperation and shares each others best practice. The CRM system includes a mechanism for Customer Support Services, in selected areas, with the explicit objectives of overall sectoral growth. A total of 76 nos of services in the form of workshops etc. for Customer support were delivered during to various customers. Further under CRM initiative, NTPC is offering training for Customers officials at Power Management Institute (PMI) of NTPC. Under this initiative two seats are kept free of 95

102 cost for customers officials in each of the Training programs. In the financial year a total of 132 participants from customers & in the financial year , a total of 167 participants from customers attended the programs. In addition to Annual Regional Customer Meets, new initiatives like State specific Business Partner Meets, State level GENCOS Meets have been held for better interaction and sharing of experiences. 5.0 GROSS REVENUE AND PROFIT NTPC recorded a gross revenue of Rs crores (unaudited and provisional) and net profit after tax of Rs crores (unaudited and provisional) during the year , as compared to revenue of Rs crores and net profit after tax of Rs crores during the year RAISING OF FUNDS FOR CAPACITY ADDITION PROGRAMME 6.1 Domestic Borrowings : NTPC has tied up loans from Domestic Banks and Financial Institutions aggregating Rs crores as on 31st March 2009 for its capacity addition programme. The cumulative utilisation upto 31st March 2009 is Rs crores. The balance of Rs crores is yet to be drawn. 6.2 Domestic Bonds : During the year , the company has issued three series of Bonds on Private Placement basis to eligible Institutions aggregating Rs.1900 crores (XXVII - Rs.350 crores, XXVIII - Rs.1000 crores & XXIX - Rs.550 crores) to finance capital expenditure on power generation projects, Coal Mining business, Renovation and Modernisation activity, LNG business and refinancing of debt. Bond Series XXVIII received an overwhelming response and was over-subscribed by more than 5 times, receiving commitments of over Rs.3000 crores. Series XXIX also generated a momentum thereby pulling down the yield for 10 year bonds to attractive levels of 8.65% (annualized). Both these series were oversubscribed on their respective first day of issue and are listed at Wholesale Debt Market Segment of NSE. The outstanding amount of Bonds as on aggregates to Rs.8250 crores as against total amount of Rs crores raised so far. 6.3 Public Deposits : During the year , the interest rates of Public Deposit Schemes were revised with effect from The present interest rates are 8.00%, 8.25% and 8.50% for 1 year, 2 years and 3 years schemes respectively. As on , there are 282 deposit holders with outstanding deposit amount aggregating to Rs crores. 6.4 External Commercial Borrowing : The company utilized Rs crores from the existing external commercial borrowings during the year CORPORATE PLAN NTPC had prepared a Corporate Plan for the period envisaging to become a MW plus company by the year Encouraged by the success of its capacity addition programme and improvement in the cash flows, NTPC had decided to increase the capacity addition target from MW to MW. However, later the company has set for itself a revised target of MW by the year This power generation portfolio would continue to reflect high share of coal-based capacity and would include around 9,000 MW in Hydro, about 2000 MW in Nuclear and about 1000 MW through Non-conventional energy sources. To safeguard its competitive advantage in power generation business, NTPC also plans to diversify its portfolio to emerge as an integrated power major, with presence across entire energy value chain through backward and forward integration into areas such as coal mining, LNG Value chain, power trading, distribution, etc. 7.1 Capacity Addition Programme During the period to , 500 MW generation capacity was commissioned comprising one unit of 500 MW (unit No. 6) at Kahalgaon-II, Phase-I. During the year (period to ), 1000 MW generation capacity was commissioned comprising one unit of 500 MW (unit No. 5) at Sipat-II and two units of 250 MW at Bhilai Expansion power project under Joint Venture. As on , NTPC s own capacity was MW and capacity under joint ventures was 2294 MW, making NTPC s total capacity as MW. A capacity addition of around 22,000 MW has been envisaged for the XI Plan period ( ). Out of this 2740 MW has already been commissioned till Construction work is in progress for MW capacity for benefits in XI Plan. Further, New projects of MW for benefits in XI & XII Plans are under various stages of planning. Details of Ongoing projects, New projects for which Main Plant bids have been invited/ received and New projects for which FR/ DPR is ready & clearances/ approvals are in process, are enclosed at Annexure-II. 7.2 Hydro Power Projects Kol Dam Hydro Power Project (4x200MW) : Construction work is in advance stage in all the components of project. Switchyard charged with 11 kv construction power. Penstock erection completed for all units. In Power House, erection of Turbine in Unit#1 and Spiral casing for 3 Units completed. After pressure testing for spiral casing of Unit#2, Generator Barrel concreting in progress. Coffer Dam construction completed. Main Dam Clay core filling reached up to EL m & for rock fill up to m. Concreting of Spillway & Power Intake is in progress. Concreting in Desilting Chamber is nearing completion. Trash Rack cleaning machine is installed and Trash Rack erection in progress. All the major electro-mechanical equipments including Generator Transformers have been received and erection in progress. Township with all facilities like Hospital, School, 96

103 A view of NTPC Koldam project post office etc. is occupied and Guest House is functional. Loharinag-Pala Hydro Power Project (4x150MW) : Work is in progress in all the main civil packages. Two kilometers of Head Race Tunnel excavation completed. River diverted on 14th Dec 08 and excavation & concreting of Barrage foundation is started. Construction of upstream Coffer Dam completed. Excavation of Power House & Transformer cavern access tunnels in progress. Electro-Mech, Hydro- Mech and under ground Switchyard packages have been awarded and engineering is in progress. Tapovan-Vishnugad Hydro Power Project (4x130MW) : Tunnel Boring Machine (TBM) commissioned and Head Race Tunnel excavation with lining started. After completion of Main Access Tunnel and Cable & Ventilation Tunnel, the excavation of Power House Cavern started in Nov 08. Surge shaft excavation through Raise Borer for part diameter is completed and widening in progress. River diverted on 18th Dec 08 and excavation of Barrage foundation is started. Construction of upstream Coffer Dam completed. Electro- Mech, Hydro-Mech and under ground Switchyard packages have been awarded and engineering is underway. Turbine model study conducted successfully. Rupsiabagar-Khasiabara Hydro Power Project (3x87 MW) : Techno-economic concurrence of the project has been accorded by CEA in Oct 08. Defence clearance obtained & MOEF clearance accorded. Preconstruction activities including land acquisition of project area are in progress. Section-4 notification for part Pvt. Land issued. Construction of approach road to Power House and Dam area is being tied up with BRO. Action has been initiated for preparation of tender stage design and drawings. Kolodyne Hydro Power Project (4x115 MW) : MoA signed with Govt. of Mizoram for implementation of the project in Dec 08. DPR updation is in process. Action for setting up of office and development of accommodation is initiated. Project being executed through NHL (NTPC Hydro Ltd. Subsidiary of NTPC) : Lata Tapovan HEP (3x57 MW) : The project is being executed under Engineering Procurement & Construction (EPC) route (EPC Package-I : Civil & HM works, EPC Package-II : EM Works). EPC Contract package for Civil & HM Works is under process of tendering and award. Rammam Stage-III HEP (3x40 MW) : The project is being executed under Engineering Procurement & Construction (EPC) route (EPC Package-I : Civil & HM works, EPC Package-II : EM Works). EPC Contract package for Civil & HM Works is under process of tendering and award. 7.3 Participation in Coal Mining & LNG/ Gas Value Chain Coal Mining Coal block development activities are under progress in five coal mining blocks, namely, Pakri-Barwadih, Chatti-Bariatu, Kerandari, Dulanga & Talaipalli. Chatti-Bariatu (South) coal block, located in the dip-side of Chatti-Bariatu block, will be developed as its expansion project. Mining Plans for Chatti-Bariatu (7 MTPA) & Kerandari (6 MTPA) coal blocks have been approved by MOC whereas 97

104 for Dulanga coal block (7 MTPA), it is under approval. The Environmental clearance for Pakri Barwadih, Chatti- Bariatu and Kerandari are at advance stage of approval. As a major achievement, NTPC has completed detailed exploration for Talaipalli & Dulanga coal blocks in a short span and prepared the Geological Reports. Socio-Economic Survey for all the coal blocks has been completed and NTPC is going ahead with the process of acquisition of land Participation in LNG/ Gas Value Chain NTPC in its efforts towards fuel security for its gas based stations, has been considering participation in different elements of LNG/ Gas value chain through equity participation/ strategic investments with prospective partner in India and abroad. This includes participation in oil/ gas exploration, liquefaction plants, shipping ventures, regasification plants etc. The target countries include Nigeria, North African/ Middle East Countries, Australia, Indonesia etc. An MOU has been signed with the government of Nigeria for supply of 3 MTPA of LNG at reasonable prices, subject to its viability coupled with NTPC setting up gas based and coal based power stations in Nigeria. A consortium comprising of M/s NTPC (40%), M/s Geopetrol Intl Inc (30% and operator), M/s Canaro (15%) and M/s Brownstone (15%) has completed Geological survey, geo microbiological survey, 2D seismic acquisition, Processing and Interpretation and 3D seismic acquisition, Processing and Interpretation in respect of oil and gas block in Arunachal Pradesh allotted under NELP-V of GOI. Based on these studies few drilling locations have been identified and drilling of exploratory wells is planned to commence in May'09. Construction of new roads, strengthening of bridges, earth cutting works (locations being in the hilly terrain) and other well site preparation works are underway. 7.4 NTPC s Foray into Nuclear Power Generation NTPC has set a target for itself of commissioning a 2000 MW Nuclear Power Plant in the twelfth plan period. NTPC Board has accorded its in-principle approval for entering into business of nuclear power generation subject to approval of GOI under Atomic Energy Act Subsequently, Ministry of Power, GOI has conveyed on its approval for amendment of Object Clause of Memorandum of Association (MOA) of NTPC for setting up 2000 MW Nuclear Power Plant. An MOU has been signed between NPCIL and NTPC on to form the joint venture company (with 51% stake of NPCIL and 49% stake of NTPC) for establishing nuclear power projects. Joint venture agreement is under finalization. 7.5 Joint Ventures NTPC-SAIL Power Company Private Ltd. (NSPCL) NTPC-SAIL Power Company Private Limited (NSPCL), a Shri Sushilkumar Shinde, Hon ble Union Minister of Power, presenting a cheque to Hon bel Prime Minister for Prime Minister s relief fund to aid Bihar flood victims on behalf of Power Sector PSUs 98

105 Joint Venture of NTPC and SAIL on 50:50 basis, incorporated on (BESCL incorporated in March 2002 was also merged with the company w.e.f ) owns, operates and maintains Captive Power Plants of SAIL located at Bhilai, Durgapur and Rourkela. NSPCL has also implemented 500 MW Bhilai Expansion Power Project (2x250 MW) primarily for meeting 280 MW captive power requirement of Bhilai Steel Plant and other units of SAIL. Balance surplus capacity of 220 MW has been allocated to Chhattisgarh State Electricity Board (CSEB) 50 MW, UT Daman & Diu 70 MW and UT Dadra & Nagar Haveli 100 MW. First 250 MW Unit has been synchronized in April 2008 and the Second 250 MW Unit is synchronized in March Total installed capacity under operation of NSPCL now is 814 MW (initially 314 MW), consisting Captive Power Plants of 574 MW (2x30+1x14+2x250 MW) located at Bhilai Steel Plant, 120 MW (2x60 MW) at Durgapur Steel Plant and 120 MW (2x60 MW) at Rourkela Steel Plant. During the year , NSPCL achieved generation of 2389 Million Units. Provisional and un-audited Gross Income and Profit (after tax) of the company for the year are Rs. 580 crores and Rs. 33 crores respectively NTPC Alstom Power Services Ltd. (NASL) NTPC Alstom Power Services Limited (NASL), a 50:50 joint venture between NTPC and Alstom Power Generation AG, was incorporated on for taking up Renovation & Modernisation (R&M) assignments of power plants in India and abroad. NASL is engaged in undertaking works of Renovation & Modernization of Power Plants in India for plant life extension, performance optimization and improvement of availability & efficiency. Provisional and unaudited Gross Income and Profit (after tax) of the company for the year are Rs crores and Rs. 4.1 crores respectively Utility Powertech Ltd. (UPL) Utility Powertech Limited (UPL) (a 50:50 Joint Venture Company of NTPC and Reliance Energy), incorporated on to take up assignments of construction, erection and project management in power and other sectors in India and abroad is progressing satisfactorily. Provisional and unaudited Gross Income and Profit (after tax) of the company for the year are Rs. 221 crores and Rs. 9.3 crores respectively PTC India Ltd. Joint Venture company formed on for trading of power, has 8% equity contribution each from NTPC (Now NTPC equity stands at 5.28%), Power Grid Corporation of India Ltd., Power Finance Corporation and NHPC and the balance from Damodar Valley Corporation, Financial institutions, Banks and general public. Provisional and unaudited Gross Income and Profit (after tax) of the company for the year (upto Dec. 08) are Rs crores and Rs crores respectively NTPC Tamil Nadu Energy Company Ltd. (NTECL) NTPC and TNEB have formed a 50:50 Joint Venture Company under the name of NTPC Tamil Nadu Energy Company Limited (NTECL) on The company is setting up a coal-based power station of 1000 MW capacity at Vallur (Ennore), using Ennore port infrastructure facilities. Construction work at site is under progress. Bids for the Main Plant award for 500 MW Stage-I, Phase-II of Vallur have also been received in Sept. 08 and evaluation is under progress Ratnagiri Gas and Power Private Ltd. (RGPPL) Ratnagiri Gas and Power Supply Pvt Ltd was formed on as a joint venture company between NTPC, GAIL, Maharashtra State Electricity Board and Indian Financial institutions with NTPC having a stake of 28.33% for taking over and operating Dabhol Power Project with LNG terminal. NTPC has invested Rs 500 Cr as 28.33% equity. NTPC s shareholding is to be revised to 32.88%. The project has begun operations and 1480 MW is already under operation. The total generation during was 5213 MUs (Commercial generation was 3873 MUs) Aravali Power Company Private Ltd. (APCPL) Aravali Power Company Private Limited was formed on as a 50:25:25 joint venture company between NTPC, HPGCL (Haryana Power Generation Corporation Ltd., a Govt. of Haryana undertaking) and IPGCL (Indra Prastha Power Generation Company, Govt. of NCT of Delhi undertaking) to set up and operate a coal fired power plant namely Indira Gandhi Super Thermal Power Project of 1500 MW (3x500 MW), in Jhajjar District of Haryana. Construction activities at site are going on and Unit-I is expected to be ready during Project is linked to Commonwealth Games scheduled to be held in October NTPC-SCCL Global Ventures Private Ltd. NTPC-SCCL Global Ventures Private Limited has been incorporated on as a 50:50 joint venture Company with SCCL for jointly undertaking the Development & O&M of Coal Block(s) & Integrated Coal based Power Projects in India and Overseas Meja Urja Nigam Pvt. Ltd. JV company with UPRVUN, with 50% NTPC equity, Meja Urja Nigam Pvt. Ltd. has been incorporated on for setting up 1320 MW (2x660 MW) power plant at Meja tehsil in Allahabad district, UP. Feasibility Report has been approved by the JV Board. Land has been acquired. Various clearances and tie-ups are under progress Nabinagar Power Generating Company Pvt. Ltd. JV company with BSEB, with 50% NTPC equity, Nabinagar Power Generating Company Pvt. Ltd. has been incorporated on for setting up 1980 MW (3x660 MW) power 99

106 plant at Nabinagar, Bihar. Feasibility report for the project is under preparation. Land acquisition activities have been initiated and various clearances and tie-ups are under progress. Site specific studies have commenced NTPC-BHEL Power Projects Pvt. Ltd. JV company of NTPC and BHEL namely NTPC-BHEL Power Projects Pvt. Ltd. has been incorporated, with 50% NTPC equity, on to take up EPC and manufacturing of equipments for Power Projects and other infrastructure projects in India and abroad. Business plan for Phase-I for BOP has been prepared and approved by NBPPL board BF-NTPC Energy Systems Ltd. JV company BF-NTPC Energy Systems Ltd. has been incorporated on , with Bharat Forge Ltd. with 49% NTPC equity, to initially take up manufacture of castings, forgings, fittings and high pressure pipings required for Power and other industries, Balance of Plant (BOP) equipment, for the power sector and also to explore manufacturing of power equipments. Joint Business development group constituted. Appointment of consultant for preparing Business plan is under progress National Power Exchange Ltd. Power Exchange National Power Exchange Limited has been registered on to facilitate nation wide trading in all types of contracts for buying and selling all form of energy % of Equity each, is held by, NTPC, NHPC and PFC and balance 50% Equity is held by TCS. CERC permission to set up the Power Exchange is under progress. 7.6 Subsidiary Companies NTPC Vidyut Vyapar Nigam Ltd. (NVVN) NTPC Vidyut Vyapar Nigam Ltd. (NVVN) is a wholly owned subsidiary of NTPC. The company was granted category F license in the year , the highest category of license for power trading at that time. As per the CERC Regulations, 2009 dated 16th February, 2009, NVVN would be under now highest category I. During the year , NVVN have traded MUs of power and transacted business with more than 30 State Utilities and during the period to , power traded by NVVN was MUs. Most of the power during this year has been traded under power banking arrangements with various utilities. In view of the market potential for fly ash and fly ash related products, the company entered into ash business in the year NVVN have delivered 432 MT of Cenosphere during the year Provisional un-audited Gross Income of the Company for is Rs crs. and provisional un-audited Profit After Tax is Rs.45.8 crs. The company is under process for selection of strategic partner for setting up of cement manufacturing units at Badarpur and Barh power stations of NTPC. NTPC Auraiya Project 100

107 7.6.2 NTPC Electric Supply Company Ltd. (NESCL) NTPC Electric Supply Company Limited (NESCL) is a wholly owned subsidiary of NTPC, formed on The business objectives of the company are to acquire, establish & operate Electricity Distribution Network in various circles/ cities across India with a clear mission to create a role model in the electricity distribution business by setting new benchmarks. Further the company was also mandated to take up consultancy and other assignments in the area of Electrical Distribution Management system. Concerted efforts towards acquiring a retail distribution business have finally shown results with the maiden entry into power distribution by forming a 50:50 JV Company KINESCO Power and Utility Pvt. Ltd. with Kerala Industrial Infrastructure Development Corporation (KINFRA). KINFRA is an existing licensee in Kerala, distributing retail power within KINFRA owned industrial theme parks. The current load is about 14 MW with a projected load ramp up to MW in next five years. To further expand the distribution business, the company is also considering to realign the business focus in the green field and brown field areas of retail distribution of electricity like SEZs and New Residential/ Commercial Complexes. Company is also engaged in the consultancy services to various power utilities in the area of turnkey execution & development of distribution network and third party inspection services for materials/ equipments being procured by them. Project management consultancy work for setting up 220 kv substation, switch yard and associated facilities at BPCL Kochi Refinery and power supply arrangement for Port based Special Economic Zones at Vallapadam for Cochin Port Trust are ongoing assignments in the area of consultancy works in distribution area. NESCL has successfully completed the turnkey Execution of Substation work of Mega Sports Complex, Ranchi for the upcoming National Games in NESCL has successfully completed turnkey implementation of Accelerated Power Development and Reform Program (APDRP) work in the Kolars, Pohri and Khaniadana towns of Shivpuri district in M.P. With the objective of sector support in the area of distribution, NESCL has been assigned by NTPC the responsibility of following programs of GoI under MoP : For the X plan, Accelerated Power Development and Reform Program (APDRP) as lead Advisor cum Consultant (AcC) to monitor distribution reform & implementation of APDRP schemes in the States of Uttrakhand, Punjab, Haryana, Rajasthan, Madhya Pradesh, Maharashtra, Chhattisgarh, Jharkhand, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. This assignment has been successfully concluded. Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), presently NESCL is implementing the rural electrification works on turnkey basis in the states of Chhattisgarh, Jharkhand, Orissa, Madhya Pradesh, & West Bengal. In the X plan eight projects i.e. Angul & Nayagarh (Orissa), Ashok Nagar & Guna (Madhya Pradesh), Champa (Chhattisgarh), Deoghar & Jamtara (Jharkhand) Kharagpur Block I & II (West Bengal) were approved and are under execution. Further under XI plan twenty two projects i.e. Balangir, Bargarh, Deogarh, Dhenkanal, Jharsugada, Kalahandi, Keonjhar, Koraput, Nuapada & Sambalpur (in Orissa), Bilaspur, Korba & Raigarh (in Chhattisgarh), Dumka, Godda, Lohardaga, Ranchi, Pakur & Sahebganj (in Jharkhand), Kharagpur Block I & II intensification, Murshidabad & North Dinajpur (in West Bengal) have been approved. The work has been awarded and implementation is in progress. In addition, Post award consultancy assignments were also carried out for the project monitoring and supervision of quality of work during construction for the X plan RGGVY projects of Uttarakhand, Madhya Pradesh and Karnataka states. During the company has implemented the electrification of 4107 villages (1863 Un-electrified/ DEelectrified and 2244 partly electrified) and provided electricity connection to BPL households under the 10th plan projects of Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) of Government of India. During the financial year , the provisional un-audited gross revenue of the company is Rs crs. and provisional un-audited Profit after Tax is Rs crs NTPC Hydro Ltd. (NHL) NTPC has formed NTPC Hydro Ltd., a wholly owned subsidiary company with an objective to develop small and medium size Hydro Electric Power Projects up to 250 MW capacities. Presently, Company is implementing two projects namely, Lata Tapovan Hydro Electric Project (171 MW capacity) in the state of Uttarakhand and Rammam Hydro Electric Project, Stage III (120 MW capacity) in the states of West Bengal and Sikkim. In respect of Lata Tapovan HEP, all statutory clearances including Techno-economic and Environmental clearances have been obtained, complete land has been acquired and Civil including HM Works EPC package is under tendering process. With regard to Rammam HEP Stage-III, all statutory clearances including Techno-economic and Environmental clearances have been obtained, land has been acquired and infrastructural development works are under progress. Further, Civil including HM Works EPC package is under tendering process. Both the projects are slated for commissioning during XII Plan period Kanti Bijlee Utpadan Nigam Ltd. (formerly known as Vaishali Power Generating Company Ltd.) Kanti Bijlee Utpadan Nigam Ltd. (formerly known as Vaishali Power Generating Company Ltd.) with NTPC s equity articipation being 67.66%, was incorporated on 6th 101

108 A view of NTPC Ramagundam Project September, 2006 as a joint venture between NTPC and BSEB. Revival / R&M of existing 2x110 MW Units is under progress. Further, feasibility report of 500 MW expansion of the project is already prepared and various clearances and tie-ups are under process Bhartiya Rail Bijlee Company Ltd. - Joint Venture between NTPC & Railways A subsidiary of NTPC under the name of Bhartiya Rail Bijlee Company Ltd. was incorporated with Railways on with 74:26 equity contribution from NTPC Ltd. and Ministry of Railways, GoI respectively for setting up a 1000 MW (4x250 MW) coal based power plant at Nabinagar in Aurangabad district of Bihar. Major power from this project is to be supplied to Railways to meet the traction and nontraction power requirements of Railways. Main Plant award has been placed in January Land acquisition for the project is under process Pipavav Power Development Company Ltd. (PPDCL) An MOU was signed between NTPC, Gujarat Power Corporation Ltd. (GPCL) and Gujarat Electricity Board (GEB) on for development of a 1000 MW thermal power project at Pipavav in Joint Venture with GPCL. In view of Govt. of Gujarat s decision to develop the project with another strategic partner, the process has been initiated for settlement of dues of NTPC on GPCL and State Govt. of Gujarat and thereafter steps will be taken for winding up of PPDCL. 7.7 Business Development Several Initiatives are being taken to develop business of the NTPC in both core as well as other related areas. Details of the same are as follows : Joint Venture with ADB An MOU was signed between NTPC and ADB on for Establishment of Power Generation of about 500 MW through Renewable Energy Sources. Further, NTPC, ADB, GE Energy Financial Services, Kyushu Electric Power Company Inc. and Brookfield Renewable Power Inc. have signed an MoU on to form a Joint Venture company for undertaking the renewable power generation activities. The JVA and business plan are being finalised Joint Venture with NPCIL for setting up 2x1000 MW Nuclear Power Project An MOU has been signed between NPCIL and NTPC on to form the joint venture company (with 51% stake of NPCIL and 49% stake of NTPC) for establishing nuclear power projects. Draft Joint Venture Agreement is being prepared for submission to NPCIL for its consideration. 102

109 7.7.3 Joint Venture with CIL An MoU has been signed between NTPC and Coal India Limited on for formation of JVC(s) with Coal India Ltd. (CIL) for Development, Operation & Maintenance of Coal Block(s) & Integrated Power Project(s). Draft Joint Venture Agreement for development of Brahmini and Chichro Patsimal Coal Blocks is being finalized with CIL Acquisition of Stake in Coal Mines Abroad Proposals for acquisitions of stake in coal mines in Indonesia and Mozambique, as received from Investment Bankers and coal mine owners are under review and discussion with the concerned parties SPV among CIL, SAIL, NMDC, RINL and NTPC MOU has been signed on , amongst NTPC, RINL, SAIL, NMDC and CIL for Securing metallurgical coal and thermal coal assets from overseas. Subsequently a JVA has been signed on Unincorporated SPV in the name of International Coal Ventures Ltd (ICVL) is exploring various opportunities in Australia, Mozambique, Canada, Indonesia and USA, etc for acquisition of stake in coking coal and thermal coal mines. Activities related to registration of the Joint venture company are under progress Acquisition of stake in Transformers and Electricals Kerala Ltd. (TELK) A Business Collaboration and Share Holder s Agreement has been signed with Govt. of Kerala and TELK to acquire around 44.6% stake of TELK, held by Govt. of Kerala. Most of the Conditions Precedents required to acquire the shares of TELK have been fulfilled. Dematerialization of Shares has been done MoU with Inland Waterways Authority of India (IWAI) An MoU has been signed between NTPC and IWAI on for exploring the feasibility of transportation of imported coal to Farraka and Kahalgaon Projects MoU with HAL for preparation of a Detailed Project Report for Repairs of Hot gas path components MoU with HAL for preparation of a detailed Project Report for Repairs of Hot gas path components has been signed on MoU with NTPC, NHPC, POWERGRID, and DVC for incorporation of JVC for setting up an Online High Power Test Laboratory for short circuit testing in the country MoU has been signed on 1st December, 2008 with NTPC, NHPC, POWERGRID and DVC for incorporation of JVC for setting up an Online High Power Test Laboratory for short circuit testing in the country. JVA has been signed on MOU with Kyushu Electric Power Company (KEPCO) Japan MoU was signed on to adopt best practices between NTPC & KEPCO. A visit by NTPC delegation was made to KEPCO Japan in the month of September The data related to the compact layout, civil design of structures and other issues relating to operation and maintenance were collected. A View of Tapovan Project 103

110 8.0 RISK MANAGEMENT Since inception of NTPC, the company is having systems and practices which have helped in identifying risk and taking measures to mitigate those risks. Further, towards institutionalising this system, a risk management policy was formulated in fiscal NTPC is fully compliant with clause 49 of the listing agreement with NSE/ BSE. However, in order to imbibe the best practices prevalent in the industry, the company appointed an International Consultant in December 2007 to develop and implement a Enterprise Risk Management (ERM) framework. After holding detailed deliberations across the company, an enterprise wide Risk Register along with policies and procedures are being formulated in line with Project Capacity Engineering / Quality Assurance & Inspection / Project Management / Construction Management & Supervision / Commissioning Services *Aravali Power Company Pvt. Ltd. (APCPL) for Indira Gandhi STPP at Jhajjar, Haryana 3x500 MW *Pragati Power Corporation Ltd for CCPP at Bawana, Delhi 1500 MW Meja Urja Nigam Pvt. Ltd.(MUNPL)for TPP at Meja, U.P. 2x660 MW NTPC-Railways JV for TPP at Nabinagar, Bihar 4x250 MW NTPC-Tamil Nadu Energy Company Ltd (NTECL) for Vallur TPP, Tamil Nadu 3x500 MW Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) for a) Harduaganj TPS Extn. 2x250 MW b) Paricha TPS Extn. 2x250 MW c) Anpara D TPP 2x500 MW Haryana Power Generation Corporation Ltd (HPGCL) for Rajiv Gandhi TPP at Hissar 2x600 MW Durgapur Projects Limited (DPL) for Durgapur TPS-II, W.B. 1x300 MW Damodar Valley Corporation (DVC) for Chandrapura TPS Extn. 2x250 MW O&M Services Gujrat Minerals Development Corporation Ltd (GMDC) for Akrimota TPS (Lignite based) 2x125 MW Konaseema Gas Power Ltd. for CCPP at Devarapalli, A.P. 445 MW Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) for Giral Lignite TPS at Giral, Barmer 1x125 MW Haryana Power Generation Corporation Ltd (HPGCL) for Panipat TPS 860 MW R&M Services Bihar State Electricity Board (BSEB) for Barauni TPS 2x110 MW Kanti Bijlee Utpadan Nigam Ltd. (KBUNL) for Muzaffarpur TPS 2x110 MW Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL) for Obra B TPS 5x200 MW Punjab State Electricity Board (PSEB) for Guru Gobind Singh STPS at Ropar 2x210 MW Gujrat State Electricity Corporation Ltd. (GSCEL) for Gandhinagar TPS 2x120 MW *Projects linked with Commonwealth Games scheduled in October, organization priorities to meet the challenges of dynamic business environment. 9.0 CONSULTANCY SERVICES Major consultancy assignments presently being provided are as under : During the year (April 08-March 09), NTPC s Consultancy Wing has achieved turnover of Rs Crore (Provisional) which is 22.45% higher as against actual achieved turnover of Rs Crore in the previous year During , it has secured orders valued total Rs Crore. Consultancy Wing is involved in Engineering, Procurement, Quality Assurance & Inspection, Construction / Project Management, Commissioning, O&M and R&M of projects / stations with a capacity of over MW.

111 Overseas Business Initiative NTPC is making consistent efforts to enter in overseas market in Middle East, Asia Pacific and African regions for consultancy business. During , it has bagged seven orders which include orders from M/s Green Energy Consultancy, Dubai for review engineering of 132/11 kv GTS sub-stations, order from M/s Alghanim International General Trading and Contracting Co. (AIGT), Kuwait for providing experts supervision services for operation of 800 MW Az Zour open cycle gas based power plant in Kuwait. The representative office of NTPC in Dubai has been functioning since November 2006 for marketing of its services in Middle East region. Sri Lanka : Memorandum of Agreement between NTPC, Govt. of Sri Lanka (GOSL) and Ceylon Electricity Board (CEB) was signed in December 06 for setting up a 2x250 MW coal based power plant in Trincomalee region of Sri Lanka through a 50:50 Joint Venture Company (JVC) to be established between CEB and NTPC. Muttur-East (Site no. 5) was identified as a suitable site for setting up the power project subject to techno-economic feasibility. NTPC has been appointed as the consultant for preparation of Feasibility Report for the proposed power plant. For the purpose of preparation of FR, activities for award of Site specific studies as well as EIA studies are under progress. The Joint Venture Agreement (JVA) and the Definitive agreements are under finalization between NTPC & CEB. Nigeria : MOU for Energy Cooperation was signed between NTPC and Ministry of Energy, Federal Govt. of Nigeria (FGN) in May, As per the MOU, NTPC shall setup one 500 MW coal based and one 700 MW gas based power projects in Nigeria in lieu of long term supply of 3 MTPA of LNG to NTPC for its use in NTPC s Indian Power Stations. Pre-feasibility Report (Pre-FR) for setting up the proposed 500 MW coal based and 700 MW gas based power plants in Nigeria was submitted to Director (Power), Ministry of Energy (Power), Federal Government of Nigeria (FGN) on NTPC is following up with FGN and is in constant touch with Indian high commission at Nigeria on the matter HUMAN RESOURCE DEVELOPMENT As on , NTPC had a total of (excluding Trainees) employees on the rolls of the company. Considering the huge capacity addition plan during the next 5 years, NTPC strengthened its induction plan by campus recruitment at the premier institutes of the country for its Executive Trainees. In the year campus recruitment at the premier management institutes of the country including IIMs were made. The training plans/ syllabus were also reviewed to ensure the delivery of the quality training to the young graduates. The attrition rate during the year was 1.77%. A number of initiatives were taken to ensure a robust talent pipeline to meet increasing requirement of manpower for company s growth plans. Training and Development NTPC has invested substantially in creating infrastructure for providing training and development opportunities to all its employees as well as other power sector professionals in keeping with its aim of becoming a learning organization. During NTPC's apex training centre Power Management Institute (PMI) conducted 304 programmes in the fields of management development, construction and O&M of power plants and information technology. Other training interventions included a 5-day programme for business unit heads of NTPC to prepare them for meeting the challenges posed by the on-going reforms in the power sector as well as the downturn in the economic and financial sectors. A 2-day workshop on Regulatory Matters and Electricity markets in India was conducted under the MOU signed between PMI and the University of technology, Sydney, Australia. This resulted in understanding of international practices and perspectives in this field. In association with the Ministry of Power (MOP) a one-day workshop on ash utilization was organized to focus on diversified usage of fly-ash and bottom ash of thermal power plants. PMI facilitated in the signing of MOUs for adoption of 15 nos. ITIs. After adoption the upgradation activities at the various ITIs has been taken up. The BTech programme with BITS, Pilani, the MTech programme with IIT Delhi and Advanced Management Programme with ASCI, Hyderabad continued during for providing higher education and managerial skills REHABILITATION & RESETTLEMENT (R&R) NTPC is committed to help the populace displaced for execution of its projects and has been making efforts to improve the Socio-economic status of Project Affected Persons (PAPs). In line with its social objective, the company has focused on effective resettlement and rehabilitation (R&R) of PAPs and also community development works in and around the projects. NTPC approved setting up of new Greenfield Industial Training Institute (ITI) at its North Karanpura, Sipat, Rihand, Nabinagar and Pakri Barwadih projects. NTPC also ap- 105

112 proved setting up of Solapur Power Training Institute at its Solapur project. NTPC formulated Initial Community Development (ICD) Policy to facilitate taking up of community development activities in new Greenfield/ Expansion projects soon after land and water clearances are received from the respective State Governments. ICD activities for mining projects were approved for Rs. 300 Million. Mobile Health Clinic started by North Karanpura and Nabinagar projects for the benefit of neighboring population near these projects. During the year, Land acquisition group was created at Corporate Centre. Settlement for land acquisition reached with villagers and land acquisition completed for main plant area for Mauda project. Consent award announced for land acquisition for Solapur project. During the year, implementation of approved Rehabilitation Action Plans (RAPs) for Barh, Koldam and North Karanpura projects; Community Development Plans for Loharinag-Pala and Tapovan-Vishnugad projects is in progress. Implementation of RAP for Sipat project completed during the year. Community Development Plan for Simhadri-II project has been formulated. Socio-Economic Survey (SES) for thermal projects Dadri-II, Jhajjar, Talcher-Kaniha Merry-Go- Round (MGR) and Mauda; mining projects Dulanga and Talaipalli have been completed. SES for Meja and Rupsiyabagar-Khasiyabara projects has been awarded and is under progress. Formulation of Community Development Plans for Jhajjar, Mauda and Nabinagar projects are under progress CORPORATE SOCIAL RESPONSIBILITY (CSR) NTPC brought out its Corporate Social Responsibility Community Development (CSR-CD) Policy in July 2004 for expanding its horizon and social vision to make its impact felt at national level by addressing the niche domains of socio-economic issues at National level through establishing NTPC Foundation. Further a dedicated CSR group has been established in the Organization. Keenly conscious of its social responsibilities, NTPC became member of Global Compact, the largest Voluntary Initiative of UN for Corporate Social Responsibility (CSR). NTPC confirms its involvement in various CSR activities in line with 10 Global Compact principles and share the experiences with the representatives of the world through Communication on Progress and a report on the progress made in this area is also annexed to NTPC s Annual Report. As a CSR initiative in the field of Health, NTPC is providing support to Hyderabad Eye Research Foundation for three specialized Eye Centers at Bhubneswar Eye Hospital, Bhubneswar, Orissa. Further in the field of education, NTPC is committed to provide support for setting up two technical polytechnic at Uattarakhand, at Kaladungi, Dist. Nainital and a Women s Polytechnic at Gopeshwar, Dist. Chamoli. Support has also been extended by NTPC for construction of School cum Multipurpose Building for Girls in Village Shaulana, Dist Ghaziabad, Uttar Pradesh through Nari Jagriti Abhiyan, Hardwar, construction of one floor each for Girls Hostel, for girls from rural areas studying in colleges, in Distt. Prakasam and Guntur, Andhra Pradesh and for assistance in self reliance for 500 tribal girls/ women in tribal area of Jhamar Kotra in Udaipur Dist. of Rajasthan. With a view to improve the employability of the village youth residing in the vicinity of NTPC Stations/ Projects and also to improve availability of skilled manpower around Projects, NTPC is providing sponsorship to candidates from villages in the vicinity of NTPC stations/ Projects for ITI training at Government/ Government recognized private ITIs in the trades of Welder/ Fitter/ Instrument mechanic/ Electrician. Close to 700 village youth have been sponsored during the financial year. In Orissa, support has been extended for infrastructure works like area lighting, water treatment plant and open car parking in and around Shri Jagannath Temple, and for beautification of Benta Pokhari and construction of approach road inside Jagannath Ballav Math Puri. For all-round improvement in community living, at Angul District in Orissa, assistance is being extended for construction of Building and Indoor Hall for Orissa Table Tennis Academy, Angul. Support is also being extended for installation of Electricity Feeder at village Sanjoe Puram near Faridabad through St. Joseph Service Society, Faridabad. Support for conservation of selected National Monuments in association with Archaeological Survey of India (ASI)/ National Culture Fund (NCF) is planned. Initially support is proposed for conservation of group of monuments at Mandu (MP), Group of Temples Jageshwar (Uttarakhand) and Archaeological Site Lalitgiri/ Dhauli (Orissa). An ICT Centre has been established at Delhi University that provides environment of inclusive education for graduate and post graduate visually challenged students Through NTPC Foundation. Further ICT Centres for 4 schools for visually challenged (one each in Karnataka, Kerala, Rajasthan and Uttar Pradesh) are also being established. Mobile ambulances under TB eradication programme and Karyashala at Talcher Super Thermal Power Station, Orissa for providing training to support income generation for eco- 106

113 Sh. Sushilkumar Shinde, Union Minister of Power at the Foundation Stone laying ceremony of MoudaThermal Power Project (1000 MW) nomically under privileged youth are also under implementation by NTPC Foundation. NTPC is also supporting the efforts of Distributed Generation (DG) for preparation of feasibility reports, project insurance and bridging the funding gap between cost of the projects and available funds, through NTPC Foundation. The efforts of the Organization in the field of CSR-CD have been recognized and appreciated many times nationally and internationally. During NTPC has been awarded Corporate Citizen III under Businessworld FICCI-SEDF CSR Award for This is an improvement over previous year s Certificate of commendable work in CSR. NTPC is also declared winner of the Gold Trophy under SCOPE Meritorious Award for Corporate Social Responsibility & Responsiveness NTPC was awarded as Excellence Awardee in the INTEL- AIM Corporate Responsibility Award (IACRA), 2008 at Singapore. Two of the NTPC Stations i.e. Farakka and Faridabad received Commendation Certificate for strong commitment under CII-ITC Sustainability Award BUSINESS EXCELLENCE The concepts of Total Quality Management (TQM) are embedded in NTPC s working right from daily management to strategic management for achieving excellence. The strategic intent of the organization to embrace TQM is to remain competitive with the changing economic scenario in the country. Various proven TQM tools and techniques like Business Excellence Model, Benchmarking, Performance Improvement Projects, ISO, Quality Circles, Professional Circles, 5S etc. have been deployed across the organization to develop a culture of creativity, innovation and continuous improvement. In pursuit of actualizing the vision to become world-class and core value of Total Quality for Excellence, globally recognised Business Excellence Model defining the characteristics of world-class organization has been adopted in the organisation. NTPC stations have been applying for the prestigious CII-EXIM Excellence Award since 2003 in their quest for excellence. Three Power stations (Ramagundam, Vindhyachal and Badarpur) have been conferred Business Excellence Awards in 2008 by Confederation of Indian Industry (CII). While Ramagundam received Significant Achievement award, Vindhyachal and Badarpur received Strong Commitment to Excel award. During the last five years seventeen NTPC stations have received CII-EXIM Excellence Awards at different levels. The fundamental building block of TQM i.e. ISO for system standardization has taken firm roots in NTPC. Today all NTPC power stations and many Corporate Functions have been certified under the Quality Management Systems of ISO All stations have also been certified with ISO for compliance to environment norms and OHSAS for compliance to occupational health and safety 107

114 norms. Some stations have also been certified with SA for adherence to Corporate Social Responsibility norms. NTPC has also started benchmarking with leading international power utilities in association with North American Electricity Reliability Council (NERC), GADS, USA. Membership of NERC, GADS, USA has been renewed to facilitate International benchmarking. Data of NTPC stations on parameters like availability factor, PLF, planned & forced outage etc. was compared with NERC-GADS international database. The performance of NTPC stations is at par with and even better than the international utilities. Performance Improvement Projects have been institutionalized in the organization to give impetus to continuous improvement culture. Performance Improvement Project of NTPC, Vindhyachal received the prestigious DL Shah Award for Economics of Quality in the public sector category for the year ENERGY CONSERVATION In its concern for climate change and sustainable development, NTPC continued its commitment towards energy conservation through proper monitoring of power consumption of various major equipments and maintaining good operational & maintenance practices. During the period of to , total 132 nos. of in house energy audits were carried out at different NTPC power projects. As per its plan NTPC has so far completed installation of On Line Energy Management System in its 06 stations and started using the information captured through this system for monitoring power consumption of major equipments. Other stations are in advance stage of installation of this system. For effective implementation of EC Act 2001 in NTPC, the company continued to encourage its executives to attain qualification of BEE s Certified Energy Auditor. Till now more than 200 NTPC executives have passed the examination and are looking into energy conservation/ APC reduction potentials in their respective area of work. With its continuous efforts on the quality of energy audits, implementation of various energy audit recommendations, through better operational and maintenance practices and adoption of new technologies, NTPC has been able to achieve savings worth Rs crores during 15 months period from to NTPC also associated with BEE in conducting two workshops on Adoption of Energy efficient process technologies & energy management practices in power plants and implementation of Energy Conservation Act 2001 under Life Long Learning programme at Noida & Simhadri during July 08 and March 09 respectively. A no. of energy managers and energy auditors from different generation utilities participated and got benefited. NTPC also successfully carried out external energy audit of the combined cycle power plant of Puducherry Power Corporation Ltd., Puducherry during A number of other bids for conducting energy audits of external utilities have been submitted RESEARCH & DEVELOPMENT (R&D) Research & Development Centre : R&D continued to play its main role of providing technical support to all NTPC stations as well as many outside stations and has played a definite role in increasing the availability & reliability of stations. The services provided by R&D have increased manifold in last few years. The important activities of R&D for are : R&D has filed nine patent applications in , namely - ANN Based Expert System for Health Assessment of High Voltage Transformers; Heat Treatment Technique for Determining Constituents of Wear Particles in Lubricating Oil and Hydraulic Fluids; Ready-to-Use Fly Ash Based Product through Setting Properties Enhancement by Using a Dry Plasticizer; Fly-ash Based Utensil Cleaning Powder; Locking device for brake lever for locomotive wagons of MGR; Determination of steam water ratio in water wall tubes of large coal based steam generating units using capacitive probe; Determination of steam water ratio in water wall tubes of large coal based steam generating units using resistive probe; A novel methodology/process to determine colloidal silica in raw & DM water; and Method for online cleaning of fouled PVC fills of cooling towers exposed to air/water borne dust/bio-fouling. R&D is providing extensive support to power plant in improving performance & reliability by way of assessing health of critical components of gas & steam turbines adopting advanced NDE technologies. R&D developed chemical formulation for corrosion prevention and also improving CW performance by developing technologies for cleaning of fouled CT fills. Three papers were published by R&D in International Journals as indicated below: i) "Improvement of boiler efficiency and availability by post-operational chemical cleaning A case study", Dr. Pradeep Jain & Dr. U.C.Bhakta, Power Plant Chemistry journal (Germany), Vol. 9 (12), ii) "Fouling control of PVC film type cooling tower 108

115 iii) fills at power plants", Ashwini Sinha, Materials Performance (NACE, USA), Feb "A consideration of the real time remnant life assessment of a HRH pipe bend", R. Daga, G. Bandyopadhyay, et al, OMMI, April R&D is providing analytical/investigative support to NTPC and other power utilities for preventing component failures. R&D has completed following projects under MOU with MoP and i) Enhancement of life of coal burner nozzle tips: ii) iii) R&D has developed the coating material for burner nozzle tip to get enhanced life of more than 2 years. Coated nozzles have been installed at Dadri since Aug Development of thermal monitoring technique to determine overheating & life of boiler tubes R&D has developed a technique to measure the thermal gradient in the water-wall tube to monitor the temperature of internal and external surface and evaluate the heat flux to identify the extent of internal and external deposition. Development of methodology for evaluation of mechanical properties of critical components of power plants such as steam turbine rotor, headers and pipelines etc through small punch technique R&D has made an assessment of technology of small punch for its application by applying the technique on the high temperature sub-header brought from one of our power plants for determining material properties. iv) Development of method to chemically remove deposits in generator stator bars of 200 MW units R&D has developed the method to chemically remove the internal corrosion products and make the generator serviceable with improved performance. v) Modeling of variable coal orifice for coal flow optimization Small scale orifice has been designed and modeling of variable coal orifice has been completed. This will help in improving combustion. vi) Lab scale development of technique to determine steam water ratio (online) in boiler tubes Sensors based on conductance/resistance have been developed. A test rig has been fabricated and Lab experiments on the test rig have been completed. This will help in reducing boiler tube leakages. vii) Modeling and simulation of ID fan loading through extraction of moisture from flue gases A joint research project has been taken up with IIT Delhi. Modeling & simulation of ID fan load- Manufacturing Ash Bricks in the vicinity of an NTPC Plant 109

116 ing through extraction of moisture has been completed and software has been developed for the purpose. Around 22-28% loading can be reduced by extracting around 7% moisture at ambient conditions. Around 52 tonnes of water can be available for different usage. R&D in association with BARC developed and implemented real time Creep monitoring and life consumption of high temp. pipings at Dadri. The installed system is continuously monitoring and evaluating the life consumption of reheat mainsteam pipes & headers. Energy Technologies Centre : Energy Technologies Centre: NTPC has set up Energy Technologies (ET) in 2004 with the mandate of becoming a world class Research Institute, for which a state-of-theart complex is coming up on 75 acres of land in Greater Noida. In the first phase sqm built up space is being developed out of this 5500 sqm space is in final stage of completion and expected to be fully functional by May/June 09. Architectural Design consultancy contract for sqm built-up space was awarded in Dec and Architectural design and development is in progress. The Centre is working in both fundamental and applied research with ultimate objective of developing new technologies targeted towards economic and clear power and also towards creating a pool of renowned thoroughbred power scientists and technologists. Among the various areas of interest, the main thrust is in the area of carbon capture technologies, artificial intelligence, NDE, IGCC technologies, robotics, liquid ammonia cycle power generation through waste heat recovery and Solar. In addition to it, various technological issues pertaining to IGCC is being resolved jointly with BHEL. Tie up with NETL USA on IGCC, advance CFD modeling and other research areas is also shortly envisaged. In order to tap the best brains of this country, this centre has networked with 10 leading research and academic institutes like National Chemical Laboratory-Pune, IIT- Mumbai, IIT-Kharagpur, BARC and HWB for 13 research projects which are in different stage of development. In area of robotic, Crawler has been developed in collaboration with BARC for vertical water wall inspection. After integration with NDT sensor the robot will be used for Boiler Tubes thickness survey. Sensor has been procured by BARC. Erection and commissioning of sensor is in progress. There after trials will be taken at Lab, which will be followed by Onsite Demonstration. Once Demonstration is satisfactorily carried out and depending on its performance, NTPC may buy its own sensors for the deployment of Robot integrated with sensor in NTPC Plants. In area of Artificial Intelligence a "Real time Intelligent Advisory System for 500 MW unit" modeling of Simhadri Boiler has been developed in collaboration with NCL Pune which is under testing & validation. The advisory system is intended to provide on line recommendation to the operator for boiler efficiency & heat rate improvement. In the field of carbon capture technologies, development of Pressure Swing Adsorption (PSA) based process is in progress in collaboration with IIT-B, IIP, NEERI, and CSMCRI.Cation-modified-zeolite adsorbents have been developed for CO2 capture and are being tested in a bench scale three bed Pressure Swing Adsorption (PSA) test facility developed in collaboration with IIP Dehradun. Two provisional patents on the developed adsorbents have been filed. On successful demonstration of Bench scale facility a pilot scale facility is envisaged with the help of IIT Bombay. CFD Model for Combustion & Radiation of Dadri 210 MW developed in collaboration with NCL-Pune. From this model, a reduced order model shall be developed which will be useful for online analysis of Basic performance. Formation of NTPC Energy Technology Research Alliance (NETRA) With a view to leverage the Synergy of NTPC s R&D Centre and Technology Centre, and to bring in more focused approach towards research & technology development, the two centres have been merged in February 2009 on the recommendations of the consultant (Indian Institute of Science, Bangalore). The merged entity is named NTPC Energy Technology research Alliance (NETRA) TECHNOLOGICAL DEVELOPMENTS The company is constantly looking to introduce new technologies in its effort to attain higher levels of efficiency and economy in its operation. Some of the initiatives taken by the company are : Introduction of 800 MW capacity units : Presently the largest size of units being set up by the company is 660 MW which are under construction at two locations. Higher size super critical units are planned for integrated coal based thermal power projects with captive mining in the states of Orissa and Chattisgarh. This technology will not only result in improvement in thermal efficiency but also reduce emissions of greenhouse gases significantly. Such integrated plants shall have additional benefits of fuel availability at lower cost and low project cost due to economy of scale. Renewable Energy & Distributed Generation : NTPC plans to have at least 1000 MW of renewables in its portfolio by MOU has been signed to form a joint venture firm to undertake renewable power 110

117 generation with Asian Development Bank, GE Energy Financial Services, Kyushu Electric Power Co. and Brookfield Renewable Power. NTPC is setting up off-grid distributed generation power projects in villages around NTPC power plants through a self sustaining model. 10 such projects have been commissioned based on biomass, solar pv, micro hydel, etc. Bids were opened and technical evaluation under progress for 8 MW hydro power plant in NTPC- Singrauli (Uttar Pradesh). An MoU was signed with KPCL for setting up about 500 MW of wind farms in Karnataka. DPR is being prepared for 10 MW solar field addition in Anta in Rajasthan. NIT issued for Feasibility Report preparation for approximate 25 MW solar energy based project at NTPC Singrauli/ Rihand. In Principal approval received from Uttarakhand Government for feasibility study in Tapoban area for geothermal based project. 1.5 MW Biomass gasification based power plant at NTPC Vindhyachal- Detail Project Report prepared. Thrust on Developing and Adopting New Technologies : NTPC s Research and technology development wing, NETRA (NTPC Energy Technology and Research Alliance) to focus on research and technology development related to green power. In the domain of CO2 fixation and utilization, NETRA is actively pursuing biological route using marine algae which are expected to yields 30 times more than the conventional energy plantation of jathropha and ratanjot for producing bio- fuels, along with national labs. Feasibility to set up a 1500 sq.mtr size demonstration plant at Simhadri TPS is being explored. NTPC has decided to set aside 1.0 % of its PAT for research and technology development including 0.5% for research activities related to clean coal and climate change initiatives. Inducting Flue Gas Desulphurising (FGD) technology in the coal based power plant at Bongaigaon (3x250 MW), expected to be operational during 11th plan. North Karanpura STPP, Loharinag Pala HEPP and Tapovan Vishnugad HEPP received Host Country approval from National CDM Authority. The methodology (namely consolidated baseline and monitoring methodology for new grid connected fossil fuel fired power plants using less GHG intensive technology) prepared for the first time by NTPC for Super Critical Technology, has been approved by UNFCCC. An agreement was signed between MoP (GOI), NTPC and JICA to implement the joint project with technical assistance of Japanese experts. The project will enable NTPC to interact with Japanese Utilities and learn their technologies and practices to further improve the efficiency of its power plants and reduce CO2 emissions ENVIRONMENT MANAGEMENT NTPC is continuously pursuing the objective of its sustainable power development programme and has taken a number of initiatives towards preservation of environment by providing the required state-of-the-art pollution control systems, strict environment monitoring and judicious use of natural resources such as coal, gas, water and land. High efficiency Electro-static Precipitators (ESPs) with efficiency of the order of 99.9% or higher and advanced control systems have been provided in all coal based plants to keep Suspended Particulate Matter (SPM) below the permissible level of 150 mg/nm3. All coming up new plants are being provided with ESPs designed for outlet dust burden of below 100 mg/nm3. Performance enhancement of ESPs operating over the years have been carried out by augmentation of ESP Fields, retrofit of Advanced ESP Controllers and adoption of sound O&M practices. Flue Gas Conditioning (FGC) system has also been provided at our old Units which is helping in reduction of SPM emissions below statutory limits as and when coal quality is deteriorating. In the area of water management, the organization has implemented the concept of 3Rs - Reduce, Recycle & Reuse in its power stations. Provision of advanced treatment facilities in its Liquid Waste Treatment Plants (LWTP), installation of recycling systems for ash pond effluent called Ash Water Recirculation System (AWRS) and installation / operation of closed cycle condenser cooling water systems with higher Cycle of Concentration (COC) are some of the measures implemented in most of its stations. With implementation of improved cooling water treatment system, NTPC has achieved operating COC of 4.5 to 5.0 against design COC of 1.65 to 2.0 at gas based combined cycle power plants at Kawas and Gandhar. This has resulted in considerable reduction in fresh water intake of the order of 20 to 30% and reduction in effluent discharge from the power plants after effective treatment and monitoring. Ash Pond Management is another area of concern in coal based Thermal Power Plants since poor quality coals having high ash contents are available for power generation in these stations. Ash dykes are engineered to ensure that all 111

118 safety & environmental issues are addressed at design stage itself. Multi-lagoon ash ponds with provision of over flow Lagoons and garlanding arrangement for change over of ash slurry feed points have been provided for effective settlement of ash particles. Water sprinklers have been provided in the Ash Pond areas for control of fugitive dust. As a proactive measure and to effectively utilize bio-degradable solid wastes generated in NTPC project canteens and townships, a pilot scale Bio methanation Plant has been set up at Faridabad in order to convert the waste into useful energy and bio-fertilizer. In order to monitor key environmental parameters of stack emissions, ambient air and effluents continuously on real time basis, automation in monitoring techniques has been taken up in NTPC. 61 Nos. of Continuous Ambient Air Quality Monitoring System (AAQMS) are presently under final stage of commissioning at 20 stations located all over India. NTPC has been taking up a number of scientific studies proactively through reputed Institutes/ Consultants and the following studies have been completed at the stations : Human health risk assessment study was conducted at Rajiv Gandhi Combined Cycle Power Project, Kayamkulam and Kawas. The observations revealed that there is no adverse effect on flora, fauna and human beings. Further, this study has also been taken up at Ramagundam. Studies on Solid Waste and Hazardous Waste Management conducted at Ramagundam, Vindhyachal, Jhanor Gandhar and Auraiya have helped in better handling, treatment and safe disposal of the wastes in an environmentally sound manner. Water Balance and Conservation Studies were conducted at a number of stations which have helped in overall water management and explored further potential for water conservation at these stations. As a post operational impact assessment exercise, Fly Ash Leachate Study was conducted at Ramagundam, Rihand, Talcher Thermal and Badarpur which reveals that there is no contamination of ground water due to leaching of heavy metals from ash dykes. The company is undertaking afforestation covering vast areas of land in and around its projects and till date has planted more than million trees throughout the country which has not only contributed to the aesthetics but also has been serving as a sink for the pollutants released from the stations. Achieved ash utilization of 56.7% i.e million tons of ash during the year Issue of fly ash to cement and concrete industry this year has been 10 million tons which is 15 % more than last year. As a result of pursuing sound environment management systems and practices, all NTPC stations have been certified with ISO and OHSAS by reputed National and International certifying agencies. NTPC has adopted advanced and high efficiency technologies such as super critical boilers for the up-coming Greenfield projects (e.g Barh, North Karanpura etc). The company is also supplementing the high ash Indian coals with washed/beneficiated coals and imported low ash coals in its operating plants. Washed coals are in regular use at Dadri and Badarpur. Presently, good quality imported coals of around 5-8% of total coal feed are also in use at some of our stations namely Simhadri, Ramagundam, Talcher Kaniha and Kahalgaon. The above measures have not only contributed to conservation of precious natural resources and but also to reduction in CO2 emissions and thereby helping reducing global warming. NTPC has been adjudged the winner of the prestigious Golden Peacock Award for Excellence in Corporate Governance for the year Talcher Thermal Power Station has received the Pollution Control Excellence Award for the year 2008 from the Orissa State Pollution Control Board. NTPC has received the Water Digest Award for in the Category Best Water Management Public Sectors in India. The Award is supported by UNESCO & Ministry of Water Resources, Government of India WEB BASED MONITORING SYSTEM A web based monitoring system has been developed in house for Dadri as a pilot project, under which PERT network of the project has been put up on Primavera to facilitate interlinking of various activities for analyzing delays for enabling us to take timely corrective action. Data preparation and linking with MNW is completed. Prototype testing was done, wherein, it was deliberated that linking with monitoring system of BHEL is required, which has been done. Apart from this a Central Project Monitoring Centre at NTPC s Corporate Centre is being developed in Core-7 of SCOPE Complex to supplement the elaborate Integrated Project Monitoring System already in place at site as well as in Corporate Centre MANAGEMENT OF CHANGE-IMPLEMENTATION OF ERP NTPC believes in keeping pace with latest technology and acquiring the latest know-how, in line with its growth and 112

119 diversification plans. The company has implemented Enterprise Resource Planning (ERP) covering most of the processes of the organization at all its locations. The ERP package-sap has been implemented across all locations of NTPC and its subsidiaries. In addition to the core business processes and Employee Self Service (ESS) functionality, ERP solution also includes e-procurement, Knowledge Management, Business Intelligence, Document Management, and Workflow etc. The SAP implementation in NTPC has been honored with SAP ACE award in 2007 for best implementation in Utilities and in 2008 as SAP Special recognition Award. The company has also extended interaction through video conferencing for various locations of organization SUSTAINABLE ENERGY DEVELOPMENT NTPC has adopted the following vision statement on sustainable energy development: Going Higher on Generation, lowering GHG intensity A multi-dimensional approach is proposed to be adopted covering reduction of CO2 intensity through fuel portfolio management, adoption of state-of-the-art technology and special thrust on renewable energy sources; developing green building space within Company s premises; spearheading awareness campaign nationally to orient people at large to support and contribute to measures for sustainable energy development; strengthening Government s efforts for dissemination and adoption of cleaner technologies by the stakeholders, engaging future generation into the cause of promoting clean and green energy through awareness programmes conducted in schools like tree plantation, environment quizzes etc. NTPC would allocate up to 0.5% of distributable profit annually for undertaking/ sponsoring research leading to sustainable energy development SAFETY Occupational Safety and Health at Workplace is one of the concerns & utmost importance is given to provide the safe working environment and create Safety awareness among the employees. Safe methods are practiced in all areas of Operations & Maintenance (O&M) and Construction & Erection (C&E) activities. Safety clauses in general conditions of contracts for C&E and O&M activities are revised and being implemented. Regular plant inspections, internal and external safety audits are carried out at each Project / Station. Safety training to employees and contract workers is our culture. Workers Participation in Safety Management is promoted through Safety Committees, Safety Circles, Safety Taskforces and Safety Stewards Schemes. Disasters Management Plans are reviewed and regular mock drills are conducted at all the Projects / Stations to familiarize the employees and to meet any emergency. Workplace monitoring and medical examination of the employees are being carried out to create safe working conditions at work place. Looking into the necessity and to ensure the best Health and Safety performance and the accident free environment, all NTPC Projects / Stations have obtained the OHSAS / IS (Occupational Health & Safety Management Systems) certification. NTPC has won the Golden Peacock Occupational Health & Safety Award for the year This is in recognition of implementation of Occupational Health & Safety standards in the Organization. Ramagundam, Dadri, Simhadri, Talcher (K), Rajiv Gandhi (Kayamkulam) & Anta stations have won the Safety Innovation Award 2008 for implementing innovative, Safety and Quality Procedures and Practices. The award is instituted by the Safety and Quality forum of Institution of Engineers (India). Auraiya, Jhanor Gandhar and Kawas have won the Safety Awards of Govt. of India National Safety Awards for the year These Awards were presented in September 2008 at New Delhi. Auraiya has received two Safety Awards for lowest average frequency rate of accidents and Accident Free Year and Dadri has received for accident Free Year for the year Rihand, Anta, Auraiya, Kawas, Simhadri, Barh, Kayamkulam and Talcher (Kaniha) received the Greentech Safety Award These awards will be received in May AWARDS AND ACCOLADES NTPC has a strong work ethics and it lays great emphasis on culture building. NTPC employs over persons. NTPC has been consistently getting various Productivity, Shram, Environment and Safety Awards. NTPC has been recipient of various other awards also. Major awards and rankings received by NTPC during the year so far are as under : 113 International Project Management Award (IPMA)-2008 silver medal for Project Excellence for Vindhyachal Stage III (2x500 MW). Institute of Chartered Accountants has awarded a Silver Shield Award for Excellence in Financial Reporting for the year in the category of Infrastructure & Construction sector. NTPC ranked 317th in the Forbes Global 2000 biggest companies for the year 2009, a quan-

120 tum jump of 94 places from 411th rank in 2008 list. Ranked No. 1 in Independent Power Producer (IPP) & Energy Trader in Asia & 15th in overall performance in the Asia region in the Platts Top 250 Global Energy Company list. Corporate Award 2008 for Sectoral Excellence by Dun & Bradstreet. Ranked number ONE in the category 'Best Workplaces for Large Organizations' and number eight overall for the year 2008 by Great Places to Work Institute s India chapter in collaboration with Economic Times. Honorary Fellowship Award by Centre for Excellence in Project Management and Project Management Award to Shri R.S Sharma, CMD, NTPC for his outstanding leadership and commitment in Project Management. Best CFO in the Public Sector category to Shri A.K. Singhal, Director (Finance), NTPC Ltd for his exemplary contribution in the expansion of NTPC Limited and his outstanding role in ensuring effective governance and managing various aspects of the business by the Institute of Chartered Accountants of India (ICAI). CII-EXIM Excellence Award 2008 to three NTPC stations namely Ramagundam, Vindhyachal and Badarpur. Significant Achievement to Ramagundam and Strong Commitment to Excel award to Vindhyachal and Badarpur. Most Valuable PSU by the premier Investment Journal Dalal Street at the First DSIJ Awards Ceremony held in New Delhi. CII ITC Sustainability awards 2008 to Farakka and Faridabad in the category Certificate of commendation for strong Commitment for exemplary performance in environmental economic social dimension. Infrastructure Excellence Award to Talcher- Kaniha Stage-II by E-18 Association with CNBC- TV 18. India Power Award 2008 in the category of Energy Efficiency to NTPC- CenPEEP (Centre for Power Efficiency & Environment Protection) conferred by Council of Power Utilities. Star Company of the year in the category of Public Sector Undertaking by Business Standard. IEEMA Power Awards for Excellence in Project Execution-Thermal First prize to Vindhyachal Stage III and Second Prize in Excellence in Decentralized Distribution. 114

121 LIST OF NTPC COMMISSIONED STATIONS/PROJECTS I. COAL BASED PROJECTS S.No. Project State Installed Capacity (MW) 1. Singrauli I & II UP Korba I & II Chhattisgarh Ramagundam I, II & III AP Farakka-I & II WB Vindhyachal-I, II & III MP Rihand-I & II UP Kahalgaon-I & II Bihar NCTPP-I, Dadri UP Talcher I & II Orissa Talcher TPS Orissa Unchahar-I, II & III UP Simhadri AP Tanda TPS UP Badarpur Delhi Sipat-II Chattisgarh 1000 Total (Coal) * Two more 500 MW units of Stage-II under construction. ** One more 500 MW unit of Stage-II under construction MW Stage-I also under construction II. COMBINED CYCLE GAS/ LIQUID FUEL BASED PROJECTS S.No. Project State Installed Capacity (MW) 1. Auraiya-I UP Anta-I Rajasthan Kawas-I Gujarat Dadri UP Jhanor-Gandhar-I Gujarat RGCCPP Kayamkulam-I Kerala Faridabad Haryana 430 Total (Gas) 3955 III. POWER PROJECTS UNDER JOINT VENTURES S.No. Project (JV) State Installed Capacity (MW) 1. Rourkela (NSPCL) Orissa Durgapur (NSPCL) West Bengal Bhilai (NSPCL) Chhattisgarh Ratnagiri (RGPPL) Maharashtra 1480 Total (under JVs ) 2294 GRAND TOTAL (Coal + Gas + Hydro) Annexure-I 115

122 DETAILS OF ONGOING AND NEW PROJECTS OF NTPC AS ON I. COAL BASED PROJECTS Annexure-II S.No. Name of the project (Fuel)/State Capacity Capacity addition (MW) in XI Plan/XII Plan A Ongoing projects 1 Kahalgaon-II, Phase-II (Coal)/Bihar Sipat-I (Coal)/Chhattisgarh Barh-I (Coal)/Bihar Korba-III (Coal)/Chhattisgarh Farakka-III(Coal)/West Bengal NCTPP-II(Coal)/ Uttar Pradesh Simhadri-II(Coal)/Andhra Pradesh Vallur(Coal)/Tamil Nadu - JV with TNEB Indira Gandhi STPP, Jhajjar (Coal)/ Haryana- JV with HPGCL & IPGCL Nabinagar (Coal)/Bihar JV with Railways Bongaigaon(Coal)/Assam, Mauda(Coal)/ Maharashtra Barh-II(Coal)/Bihar Rihand-III(Coal)/Uttar Pradesh Vindhyachal-IV(Coal)/Madhya Pradesh Koldam (Hydro)/ Himachal Pradesh Loharinag Pala (Hydro)/ Uttarakhand Tapovan Vishnugad (Hydro)/ Uttarakhand Sub Total A B Projects for which Main Plant bids have been received/invited 1 Vallur(Coal)/Tamil Nadu - JV with TNEB North Karanpura(Coal)/Jharkhand Lata Tapovan* (Hydro)/ Uttarakhand Rammam-III* (Hydro)/ West Bengal Renewable Energy (Wind) Sub Total B 2871 C Projects for which FR/DPR is ready, clearance/approval in process 1. Muzaffarpur Exp. (Coal)/ Bihar-(JV with BSEB) Kawas-II, Gujarat Jhanor Gandhar-II, Gujarat Rupsiyabagar Khasiyabara (Hydro), Uttarakhand Meja (Coal)/ Uttar Pradesh JV with UPRVUN Solapur (Coal)/ Maharashtra Tanda-II(Coal)/ Uttar Pradesh RGCCPP-II # (Gas)/Kerala Sub Total C 9271 GRAND TOTAL A+B+C * To be implemented by NTPC Hydro Ltd. # FR to be updated after fuel tie-up. 116

123 CHAPTER NHPC LIMITED NHPC LIMITED NHPC Limited (earlier known as National Hydroelectric Power Corporation Ltd.) is a Schedule A Mini-Ratna Enterprise of the Government of India with an authorized share capital of Rs. 15,000 Crore and an investment base of more than Rs. 30,800 Crore. NHPC was set up in 1975 and has now become the largest organization for hydro power development in India, with capabilities to undertake all the activities from conceptualization to commissioning of Hydro Projects. The main objects of NHPC include, to plan, promote and organize an integrated and efficient development of power in all its aspects through Conventional and Non Conventional Sources in India and Abroad and transmission, distribution, trading and sale of power generated at stations. NHPC has signed an MoU with Rural Electrification Corporation Ltd. (REC) for formulation and implementation of projects under the programme of accelerated electrification of one lakh villages and one crore households. NHPC has also entered into an agreement with the Ministry of Rural Development for development and maintenance of rural access roads in six districts of Bihar under Pradhan Mantri Gram Sadak Yojana, a 100% centrally sponsored scheme. Works are in progress on these schemes. PROJECTS UNDER OPERATION NHPC has so far commissioned 13 hydroelectric projects with aggregate installed capacity of 5175 MW which includes 2 projects with total installed capacity of 1520 MW in Joint Venture with Govt. of Madhya Pradesh. The list of power stations under operation is as under: S. No. Name of Project State Installed Capacity (MW) 1 Bairasiul Himachal Pradesh Loktak Manipur Salal-I & II Jammu & Kashmir Tanakpur Uttarakhand Chamera-I Himachal Pradesh Uri-I Jammu & Kashmir Rangit Sikkim 60 8 Chamera-II Himachal Pradesh Dhauliganga-I Uttarakhand Dulhasti Jammu & Kashmir Teesta-V Sikkim Indirasagar (JV) Madhya Pradesh Omkareshwar (JV) Madhya Pradesh 520 Total 5175 In addition to above, NHPC has commissioned 3 projects namely Kalpong (5.25 MW) in Andaman & Nicobar Islands, Sippi (4 MW) & Kambang (6 MW - 2 units out of 3 units commissioned so far) in Arunachal Pradesh on turnkey / deposit basis. GENERATION AND CAPACITY INDEX (CI) FROM NHPC POWER STATIONS FOR THE YEAR (FIGURES IN MUs) Name of Power Installed Actual Generation Capacity Index Station/ Project Capacity (MW) for the Year During (Including Auxiliary Consumption and Transformation loss) in MUs BAIRASIUL LOKTAK * SALAL

124 TANAKPUR CHAMERA-I URI RANGIT CHAMERA-II DHAULIGANGA DULHASTI TEESTA-V TOTAL PROJECTS UNDER CONSTRUCTION The Corporation is presently engaged in construction of 11 hydro electric projects with total capacity of 4622 MW. The list of these projects is as under: S.No. Name of the Project State/ UT/ Country Installed Capacity (MW) 1. SEWA II J&K TEESTA LOW DAM-III West Bengal URI-II J&K TEESTA LOW DAM-IV West Bengal CHAMERA-III H.P NIMOO BAZGO J&K PARBATI-III H.P PARBATI-II H.P CHUTAK J&K SUBANSIRI LOWER Ar. Pradesh KISHANGANGA J&K 330 Total 4622 The Status of ongoing projects ending March 2009 is given below: 1. Sewa HE Project Stage-II (120 MW), J & K Dam Concreting nearly completed. HRT excavation completed and 6667m (66%) out of 10084m overt lining has been completed. Excavation, erection of liner & concreting for Vertical Pressure shaft, Upper & Lower Horizontal Pressure Shaft completed and Liner erection of Penstock of 752m out of 826m has been completed. Power House concreting is nearly complete. Boxing up of all the three units completed and Auxiliaries is in progress. Erection of switchyard is in progress. The project is expected to be commissioned by Oct Teesta Low Dam Project, Stage-III (132 MW), West Bengal In Barrage Bays 3 to 7, Intake and PH, excavation is completed and concreting is in progress. Supply and erection of E&M and HM components is in progress. During flash floods in July 07, entire work area got flooded causing a severe setback to the progress of works and delaying the completion of Project. The Project is now expected to be completed by Feb Uri HE Project, Stage-II (240 MW), J&K HRT heading and benching excavation completed except 53m which will be taken up after completion of Surge Shaft widening and concrete lining are in progress. Heading of TRT completed except 49m TRT outlet portion and benching is in progress. Power House excavation completed & concreting is in progress. Erection of 2 nos. draft tubes completed and in other 2 units in progress. Earth mat in all units completed. Erection of EOT crane in service bay completed. Design & Engineering and fabrication of E&M and HM works are in progress. The project is expected to be commissioned by February Teesta Low Dam Project, Stage-IV (160MW), West Bengal Major part of excavation for Dam component & Energy Dissipaters, PH, Cellular wall and TRC has been completed. Excavation and concreting of Cellular Wall completed. Excavation and 47.95% concreting of Power House 118

125 completed. The project is expected to be commissioned by December Chamera HE Project, Stage-III (231MW), H.P 94% Dam excavation and 26% Dam Concreting has been completed so far. HRT excavation completed and 2181m (14%) out of 15995m overt lining has been completed. Excavation of Vertical Pressure shaft, Surge Shaft is in progress. Excavation of Power House completed and its concreting is in progress. 92% excavation of TRT completed. EOT Crane at Service bay commissioned and erection of E&M component for Unit-1, Unit-2 & Unit-3 is in progress. Erection of Pressure Shaft bottom liner is in progress. The project is expected to be completed by August Nimoo Bazgo HE Project (45MW), J&K The Project is situated near Leh in J&K. The works are progressing satisfactorily in spite of difficult conditions and sub- zero temperature. Excavation of Dam completed and concreting is in progress. PH excavation and concreting upto crane beam level completed. The project is expected to be completed by August Parbati HE Project, Stage-III (520MW), H.P Excavation for Rockfill Dam completed and rockfilling above EL 1300m is in progress. In HRT, 71.60% excavation has been completed. Slashing of Pressure Shaft and Surge Shaft is in progress. In TRT, 89.20% excavation has been completed. Power House excavation is in progress. Design & Engineering are in progress for HM and E&M works. The project is expected to be completed by November Parbati HE Project, Stage-II (800 MW), H.P So far 100% excavation & 54.72% Dam concreting has been done. In HRT, excavation of 81.90% and concrete lining of 22% length have been completed. During Nov. 06 in HRT face-4, the TBM was partly buried due to heavy ingress of silt and water, causing total stoppage of work. Refurbishment of TBM has been completed. Agency for treatment of strata ahead of TBM has been finalised and TBM is to start in February Excavation of both Inclined Pressure Shafts has been completed. In Powerhouse, full excavation and 14% concreting had been completed but in Feb. 07, failure of PH back hill slope caused a setback to the works. Slope Stabilization works are in progress. Supply of E&M and HM components is in progress. The Project is to be completed by Mar Chutak HE Project (44MW), J&K The Project is situated in Kargil Region of J&K. The works are progressing satisfactorily in spite of difficult conditions and sub- zero temperature. Barrage & Power House excavation completed and concreting is in progress. About 86.54% HRT excavation completed and lining is in progress. The project is expected to be completed by February Shri S. K. Garg, CMD, NHPC Limited presenting dividend cheque to Shri Sushilkumar Shinde, Hon ble Union Minister of Power in the Presence of Shri Jairam Ramesh, Hon ble Union Minister of State for Commerce and Power, Shri Anil Razdan, Secretary (Power), Govt. of India and Shri A. B. L Srivastava, Director (Finance), NHPC Limited 119

126 10. Subansiri (Lower) HE Project (2000 MW) Ar. Pradesh. Major civil works contracts were awarded in December 03 but work could start only after final forest clearance was accorded on 12th October 2004 by MOEF % excavation of Horizontal Pressure Shaft completed. In Jan. 08, Power House backhill slope failed which necessitated change in design and Surge Chamber has now been replaced with eight inclined Surge Tunnels. Slope treatment in PH is under progress % HRT excavation completed. The project is expected to be commissioned by Dec Kishanganga HE Project (330 MW), J&K Clearance for revised Cost Estimate of Rs crores with scheduled completion in 84 months (i.e. by Jan. 16) has been given on Letter of acceptance for award of the project has been issued by NHPC on in favour of M/s Kishanganga Consortium (HCC-Halcrow) for turnkey execution. Land acquisition is under process. Mobilization and survey work has been started at site by contractor. Departmental excavation of Diversion Tunnel initiated and 208m completed. J&K Govt. on has accorded revised forest clearance to the project. Proposed XIth Plan Capacity addition Programme NHPC had proposed to add 12 Projects with installed Capacity of 5322 MW during XIth Plan which includes projects of 520 MW in joint venture with Govt. of Madhya Pradesh (MP), Gist of projects is as under. S.No. Name of the Project State/ UT/ Country Installed Capacity (MW) 1 Teesta-V Sikkim Parbati-II Himachal Pradesh 800 ( may likely to be commissioned in the XII plan). 3 Sewa-II Jammu & Kashmir Teesta Low Dam - III West Bengal Subansiri Lower Arunachal Pradesh 2000 (may likely to be commissioned in the XII plan) 6 Uri - II Jammu & Kashmir Chamera-III Himachal Pradesh Parbati-III Himachal Pradesh Teesta Low Dam IV West Bengal Nimoo Bazgo Jammu & Kashmir Chutak Jammu & Kashmir Omkareshwar (JV) Madhya Pradesh 520 TOTAL 5322 Omkareshwar Project (520 MW) and Teesta-V (510 MW) projects have already been commissioned. PROJECTS UNDER GOVT. CLEARANCE / SANCTION Projects with aggregate capacity of 7151 MW are awaiting Govt. Approval / statutory clearances. The list of these projects is as under: S.No. Name of the Project State/ UT/ Country Installed Capacity (MW) 1 Loktak Downstream $ Manipur 66 2 Kotli Bhel-IA Uttarakhand Kotli Bhel-IB Uttarakhand Kotli Bhel-II Uttarakhand Dibang Arunachal Pradesh Pakal Dul & other projects $$ Jammu & Kashmir Teesta-IV Sikkim 520 TOTAL 6731 $ Joint Venture project between NHPC and Govt. of Manipur $$ now to be executed by Joint Venture project amongst Jammu Kashmir State Power Development Corporation Ltd, NHPC Ltd. and PTC India Ltd. 120

127 The status of project under Government clearance / sanction is given below: 1. Loktak Downstream (66 MW) Manipur: Promoters Agreement has been signed between NHPC and Govt. of Manipur on NHPC has sent final draft of Memorandum of Association and Articles of Association to Government of Manipur for their approval. Approval / consent is awaited. EIA & EMP studies are under progress. 2. Kotli Bhel IA (195 MW), Uttarakhand Techno economic clearance has been accorded by CEA. The project has received no objection from Ministry of Defence. Environmental clearance has been accorded by Ministry of Environment and Forest. The forest clearance is yet to be received. The Project has been recommended by the PIB for Government sanction. 3. Kotli Bhel IB (320 MW), Uttarakhand Techno economic clearance has been accorded by CEA. The project has received no objection from Ministry of Defence. Environmental clearance has been accorded by Ministry of Environment and Forest. The forest clearance is yet to be received. The Project has been recommended by the PIB for Government sanction. 4. Kotli Bhel II (530 MW), Uttarakhand Techno Economic Clearance has been accorded by CEA. The project has received no objection from Ministry of Defence. Ministry of Environment has also accorded environmental clearance. The PIB has recommendedd the project. 5. Lakhwar Vyasi (420 MW), Uttarakhand DRR of Lakhwar Vyasi project was prepared by NHPC Govt. of Uttaranchal have alloted the project for implementation to Uttarakhand Jal Vidyut Nigam Ltd. NHPC has been authorized to seek reimbursement of expenditure already incurred on preparation of DPR etc. 6. Dibang Multipurpose (3000 MW), Arunachal Pradesh Revised MOA between NHPC and Govt. of Arunachal Pradesh has been signed for executing the project on ownership basis by NHPC. CEA has accorded concurrence to the project. PIB in its meeting has recommended the project for consideration of Cabinet Committee of Economic Affairs (CCEA) subject to certain observations and suggestions. EIA & EMP Reports have been submitted to MOEF for initiating process of Public Consultation. Forest clearance is also under process. Public hearing for lower Dibang Valley district has been held however for Dibang Valley district, it could not be held due to protest by the local people. Forest clearance proposal has been submitted to the State Govt. Land identified for compensatory afforestation till date is ha. and balance land i.e., about ha. is yet to be identified. 7. Pakal Dul (1000 MW), J&K An MoU has been signed amongst JKSPDC, NHPC Ltd. and PTC to develop Pakal-Dul and other hydroelectric projects in the Chenab River Basin of J&K with aggregate 1000 MW Indira Sagar Power Station (Madhya Pradesh)-Dam 121

128 installed capacity of 2100 MW through a Joint Venture Company. Working Group to finalize/complete the modalities of JVC has been constituted. 8. Teesta-IV (520 MW) Sikkim Implementation agreement was signed on between NHPC and Govt. of Sikkim. NHPC has applied for forest environment clearance for pre-construction activities and approval of terms of reference for EIA study. DPR of the project has been submitted to CEA on CEA is, however, of the view that DPR of the project needs review and revision. Balance Survey & Investigation for DPR revision is under progress. PROJECTS UNDER FR / DPR PREPARATION 9 projects with installed capacity of 7255 MW are under Survey & Investigation for preparation of FR / DPR: S.No. Name of Project State Installed Capacity (MW) 1 Bursar Jammu & Kashmir Chungar Chal Uttarakhand Garba Tawaghat Uttarakhand Kharmoli Lumti Tulli Uttarakhand 55 5 Lachen Sikkim Tawang-I Arunachal Pradesh Tawang-II Arunachal Pradesh Subansiri Middle Arunachal Pradesh Subansiri Upper Arunachal Pradesh 2000 TOTAL 7255 PROJECTS IN NORTH-EAST AND SIKKIM In North-East, NHPC has already commissioned Loktak project (installed capacity of 105 MW) in Manipur, which is under operation. Subansiri Lower project (2000 MW) in Arunachal Pradesh is under active construction. 2 projects (including 1 project in joint venture) with total aggregate capacity of 3066 MW, are under Govt. Sanction / clearance. In addition, 4 projects with total aggregate capacity of 5100 MW are under FR / DPR stage. List of NHPC projects in North East is as follows: S.No. Name of Project State Installed Capacity (MW) Under Operation 1 Loktak Manipur 105 Under Construction 1 Subansiri Lower Arunachal Pradesh 2000 Under Govt. Clearance / Sanction 1 Loktak Downstream$$ Manipur 66 2 Dibang Arunachal Pradesh 3000 Under FR/ DPR Preparation 1 Tawang-I Arunachal Pradesh Tawang-II Arunachal Pradesh Subansiri Middle Arunachal Pradesh Subansiri Upper Arunachal Pradesh 2000 TOTAL $$ Joint Venture project between NHPC and Govt. of Manipur 122

129 Sikkim In Sikkim, NHPC has already commissioned Rangit (60 MW) and Teesta-V (510 MW) projects which are under operation. One project with installed capacity of 520 MW is under Govt. Sanction / clearance. In addition, one project with installed capacity of 210 MW is under FR / DPR stage. List of NHPC projects in Sikkim is as follows: S.No. Name of Project State Installed Capacity (MW) Under Operation 1 Rangit Sikkim 60 2 Teesta-V Sikkim 510 Under Govt. Clearance / Sanction 1 Teesta-IV Sikkim 520 Under FR/ DPR Preparation 1 Lachen Sikkim 210 TOTAL 1300 COMMERCIAL PERFORMANCE OF THE CORPORATION During the financial year , % realization has been achieved (Rs Crores realized against the bills raised amounting to Rs Cr.). As on 31st March, 2009, the outstanding dues for more than 60 days are Rs Cr. in respect of J&K PDC. Also, there is no default by State Governments / beneficiaries in payment of interest on bonds and long term advances. R&D ACTIVITIES The following activities have been taken up during the year The status of the activities as on is given below:- S.No. Activity Status as on Energy audit of Power Stations With a view to assess & optimize the power station s performance, Energy Audit of NHPC Power Stations is being conducted. In the current financial year ( ), Energy audit of Uri-I & Chamera-II power stations have been completed. Final report on energy Audit of Uri-I and Chamera-II power stations has been received from CPRI. The recommendations suggested by CPRI to improve the energy saving measures are being implemented by the power stations MW Durgaduani Mini Tidal Power Project, Sunderbans, West Bengal An MOU has been made on 28th February 2007 between West Bengal Renewable Energy Development Agency under Ministry of Power, Govt. of West Bengal and NHPC Limited to update DPR and to execute the 3.75 MW DMTPP (Durgaduani mini tidal power project). NHPC has submitted the updated DPR to WBREDA on A letter of intent has been received from WBREDA for execution of the project as per DPR. Now WBREDA have issued revised LOI vide letter dated International Competitive Bidding (ICB) for turnkey execution has been floated in November R&D Projects under National Perspective Plan (NPP) Development of Silt Erosion Resistant Material for Turbines of Hydro Generators A memorandum of understanding (MoU) has been signed between National Metallurgical Laboratory (NML) and NHPC for development of Silt Resistant Material for elongation of service life of underwater components. The representative of the lead agency M/s NML Jamshedpur visited 123

130 the NHPC power stations & inspect the damaged underwater turbine components and collected the sample of damaged component for characterization of the existing base material. Work is under progress. New Project Proposals As requested by CEA, NHPC has submitted the following project proposals for their consideration to be taken up under National Perspective Plan for R&D. 1. Ecological study of Hydro Reservoirs to estimate the Green House Gas emission from hydro Reservoirs. 2. Flow through downstream of Dam and barrage for sustaining aquatic &other requirements. 3. Method for Accurate Assessment of under ground geology upto 03 kms. 4. Compilation of data and correlation between catogeries of rocks in Himalayan geology and excavation rates of tunnels in various hydro projects. 5. Tunnelling in water charged zones under high hydrostatic pressure. The above proposals were discussed during 12th meeting of Standing Committee wherein Chairman, CEA approved the proposal at Sl no.5 and the work for the said project has been started by NHPC. 4 Development of Geothermal Power 5 Coordination with IRTCES China NHPC have been engaged as the nodal agency by Ministry of New and Renewable Energy (MNRE) for development of Geothermal Power in India. An Expert Group consisting of representatives from CEA, MNRE, NHPC, GSI, NGRI & M/s Geo-syndicate was constituted to examine & compile the information available with various agencies involved in the areas of geothermal energy for assessment and development of the geothermal potential at the Puga valley, J&K. The Expert Group submitted its recommendations on development of Puga Geothermal fields to MNRE in May Further NHPC has been entrusted with the phase-i work of preparation of DPR and setting up of 2 to 5 MW geothermal plant at Puga. Based on the budgetary offer received from Mineral Exploration Corporation Limited (MECL) and consulting firms, a proposal has been submitted to MNRE for the preparation of DPR of 2 to 5 MW geothermal power project at PUGA. An MOU between International Research and Training Centre on Erosion & Sedimentation (IRTCES), China and NHPC have been signed for co-operation on various research areas. The following Specific research areas relevant to NHPC need have been identified: (1) Sedimentation and its characteristics of typical reservoirs, (2) Primary measures to restore storage capacity of typical reservoirs, 124

131 (3) Desilting efficiency of typical reservoirs by density flow, and (4) Application prospect of sedimentation management of typical reservoirs. Two reservoirs namely, Chamera-I & Dhauliganga I from NHPC and two reservoirs namely, Bajiazui & Hongshan from IRTCES, China have been selected for the collaborative research on Management of Sedimentation in Hydro Reservoir between NHPC and IRTCES, China. As per the outline of joint collaborative research for the research projects, NHPC in its research work have covered all the research topics for both the selected projects i.e. Dhauliganga stage-i and Chamera stage I. Draft reports by NHPC are in progress. IRTCES, China informed that data collection has been finished and data analysis is being done. 6 Clean Development Mechanism ( CDM ) The Clean Development Mechanism (CDM) is one of the three flexibility mechanisms under the Kyoto Protocol (KP), 1997 that enables developing countries to assist developed countries in meeting their green house gas (GHG) emissions reduction targets. The ultimate objective of this mechanism is to stabilize GHG concentration. It has created a new source of income for the promoters of projects that reduce green house gas emissions. NHPC have actively considered Clean Development Mechanism (CDM) benefits for its hydro power projects. Nimmo Bazgo & Chutak Projects - Host Country approval for Nimoo-Bazgo (3X15 MW) and Chutak Project (4X 11 MW) in J&K State have been obtained from National CDM Authority in August Validation of Nimoo Bazgo & Chutak Projects by Designated Operational Entity (DOE) have been completed and approved validation reports have been submitted to CDM Executive Board (UNFCCC) for registration. Both the projects have been cleared for registration by CDM Executive Board in its 46th EB meeting held on 23-25th March 2009 at Bonn, Germany. The work of CDM benefits for Renovation and Modernisation of Loktak power station has been awarded to M/s Emergent Ventures India Pvt Ltd. Preparation of Project Design Document (PDD) is under process. Securing & Sale of Voluntary Emission Reductions (VERs) for Teesta-V has been awarded to M/s Emergent Ventures India Pvt. Ltd. and Project Design Document (PDD) is being prepared. Pressed Tender for identification of prospective consultant for other seven projects at different stages of constructions viz. Chamera-III, Parbati-II, Parbati-III, Sewa-II, TLDP-III, TLDP-IV and Uri-II Projects for securing & sale VERs have been floated on with bid submission due on Tendering of Five hydro projects under different stages of clearances viz. Kotli Bhel- 1A, Kotli Bhel - 1B, Kotli Bhel II, Dibang & Vyasi project for CDM benefits is under process. 125

132 Project Idea Note for 10 hydro projects under different stages of construction/ clearances namely Kishanganga, Pakaldul, Teesta- IV, Bursar, Chungar Chal, Garba Tawaghat, Khartoli Lumti Tulli, Lachen, Tawang I,Tawang II are being prepared for their consideration for CDM benefits.] 7 Establishment of Computational Fluid Dynamics (CFD) Lab. Computational Fluid Dynamics (CFD) Laboratory has been established in Corporate Office of NHPC for its use in analysis & design of hydro power systems & its components. Six days training on software installation, administration, management & demonstration of CFD capability was provided at NHPC Corporate office. Ten days rigorous training on CFD application has been provided at CD-Adapco, Bangalore. CFD analysis of Penstock of Baira Siul and Loktak Power Station has been proposed to be carried out. CONSULTANCY SERVICE NHPC is providing consultancy services in the various fields of hydro power viz. river basin studies, survey works, design and engineering, geological studies, geotechnical studies, hydraulic transients studies, hydrological studies, contract management, construction management, equipment planning, under ground construction, testing commissioning, operation & maintenance etc. to leading organizations of the country. The organizations to whom consultancy services are currently being given include A&N Administration, KRCL, MEA (for hydro projects in Union of Myanmar - Department of Hydropower, Govt. of Union of Myanmar, Implementation and Renovation & Modernization of Varzob-I Power Station in Tajikistan), Deptt. of Energy, Royal Govt. of Bhutan, NHDC, PIDB, PGCIL, WBREDA, WBPDCL, Athena Demwe Power Pvt. Ltd., JKPDC. NHPC has earlier given consultancy services to BBMB, BSHPC, CEA, CSEB, CWC, DVC, Govt. of Arunachal Pradesh, Govt. of Bihar, Govt. of Goa, Govt. of Mizoram, Govt. of Nagaland, KPA, KSEB, LAHDC, Northern Railways, NTPC, REC, THPA, SJVNL, THDC, UJVNL, CES, ICICI, IFCI and Jaiprakash Hydro Power Ltd. NHPC is registered with World Bank, Asian Development Bank, African Development Bank and Kuwait Fund for Arab Economic Development, Central Water Commission, and Consultancy Development Centre as a Consultant in the 280 MW Dhauliganga Power Station (Uttarakhand)-Dam 126

133 area of Hydropower. In the current financial year (up to March 2009), new assignments amounting to Rs Crore and payments amounting to Rs Crores have been received. CO-OPERATION WITH NEIGHBOURING COUNTRIES IN HYDRO POWER MANGDECHHU HE PROJECT (720 MW), BHUTAN NHPC has undertaken the work of preparation of Detailed Project Report (DPR) for Mangdechhu H.E Project at a cost of Rs Crore under the Govt. of India Project tied assistance to Bhutan. Subsequent to signing of the implementation agreement between Department of Energy (DoE), Ministry of Trade & Industry, Royal Government of Bhutan (RGoB) and NHPC on , NHPC carried out survey & investigation works at the project and the final DPR was submitted to DoE, RGoB in Sept. 08. Techno Economic appraisal of DPR is being done by CEA. CHAMKHARCHHU-I (670 MW) & KURI-GONGRI (1800 MW) H.E. PROJECTS, BHUTAN Under the Action Plan on India-Bhutan cooperation in hydropower development of MW by the year 2020 NHPC has been entrusted the work for preparation of DPR s of Chamkharchhu-I (670 MW) & Kuri-Gongri (1800 MW) H.E Projects in Bhutan. NHPC has deployed its officials at the project sites and commencement of field activities have started. VARZOB HYDRO POWER PLANT I (2 X 3.67 MW), TAJIKISTAN NHPC has undertaken the work for Renovation, Modernization and Uprating of Varzob Hydro Power Plant I (2 x 3.67 MW) in Tajikistan. In this regard, a tripartite agreement has been signed between Ministry of External Affairs (MEA), NHPC Ltd. and Bharat Heavy Electricals Ltd. (BHEL) on in MEA. The total cost of the assignment is Rs Crore, wherein NHPC has to execute the Civil & HM Works for an amount of Rs Crore. The work is going as per schedule. Technical Specifications of related items of Civil & HM work have been prepared and sent to M/s Barki Tojik for vetting at their end. Meanwhile, Ultrasonic Thickness Testing of Penstock Pipe Liners of the project has been got conducted and the relevant Report has been submitted to the authorities. DEVELOPMENT OF HYDROPOWER PROJECTS IN CHINDWIN RIVER BASIN, MYANMAR As per the MoU signed on between Department of Hydropower Implementation (DHPI), Govt. of Union of Myanmar (GoUM) & NHPC Limited, NHPC carried out the study and appraisal of the Detailed Feasibility Reports of 1200 MW Tamanthi H.E Project (report prepared by M/s Colenco Power Engineering Ltd., Switzerland) & 642 MW Shwezaye HE Project (report prepared by M/s Kansai Electric Co. Japan) vis-à-vis master plan of Chindwin River Basin. Accordingly, NHPC has submitted Project Review Reports suggesting need for carrying out additional studies / investigations for preparation of DPRs for these projects to MEA/MoP and the GoUM on , within the agreed schedule period. 127

134 CHAPTER POWER GRID CORPORATION OF INDIA LTD. (POWERGRID) Power Grid Corporation of India Limited (POWERGRID) was incorporated on October 23, 1989 with an authorized share capital of Rs. 5,000 Crore (subsequently enhanced to Rs. 10,000 Crore in FY ) as a public limited company, wholly owned by the Government of India. POWERGRID started functioning on management basis with effect from August, 1991 and it took over transmission assets from NTPC, NHPC, NEEPCO and other Central/Joint Sector Organizations during in a phased manner. In addition, it also took over the operation of existing Regional Load Despatch Centers from CEA in a phased manner, which have been upgraded with State of-the-art Unified Load Despatch and Communication (ULDC) schemes. According to its mandate, the Corporation, apart from providing transmission system for evacuation of central sector power, is also responsible for Establishment and Operation of Regional and National Power Grids to facilitate transfer of power within and across the regions with Reliability, Security and Economy on sound commercial principles. ACHIEVEMENTS OF POWERGRID POWERGRID, the Central Transmission Utility of the country, has been contributing significantly towards development of Indian power sector by undertaking coordinated development of power transmission network along with effective and transparent operation of regional grids and through continuous innovations in technical & managerial fields. Recognizing the contribution of Power GRID for over all development of power sector, the company's performance during the year exceeded the performance parameters set for "Excellent" rating under Memorandum fo understanding (MOU) signed with Ministry of power, Govt. of India, it has been conferred with Navratna status by Government of India in May, 2008 for more functional and financial autonomy. This reflects GoI s confidence in POWERGRID s capability and the ability to discharge enhanced responsibilities. POWERGRID has achieved Excellent rating under Memorandum of Understanding (MoU) signed with Ministry of Power, Government of India. The Company has also been chosen for the prestigious MoU Excellence Award for year for being amongst the top ten PSUs. POWERGRID is the only utility in Power Sector which has been chosen for this award. In fact, POWERGRID had Tower in Snow Area 128

135 received this prestigious Award in the past also on six occasions. Over the years, Company has been contributing significantly towards development of power sector in India through continuous innovations in technical & managerial fields and by undertaking coordinated development of power transmission network along with effective and transparent operation of regional grids. Business Standard, a leading financial daily of the country, has chosen POWERGRID for the prestigious Star Public Sector Company Award for for its game-changing role in the industry. POWERGRID has been conferred the The First DSIJ PSU Awards 2009 by Dalal Street Group of Publications for being one of the largest transmission utilities in the world. POWERGRID has also received Three National Awards for meritorious performance in the field of Transmission Sector for system availability and early completion of project for the year POWERGRID has also received IEEMA Power Awards 2009 for Excellence in Power Transmission & All India Organization of Employers Industrial Relations Award POWERGRID achieved unique distinction of being First Power Utility and Second Company in the world to get certified with Integrated Management System (IMS) as per Publicly Available Specification, PAS 99:2006 integrating requirement of ISO 9001:2000 (Quality), ISO 14001:2004 (Environment) & OHSAS 18001:1999 (Occupational Health & Safety Management System) after extensive audit. During the FY , POWERGRID achieved another milestone in its quest for excellence in quality management and got certified to Social Accountability Standard, SA 8000:2001. As at the end of March, 2009 POWERGRID owns & operates a transmission network around 71,500 ckt. kms. of transmission lines along with 120 Sub-stations and transformation capacity of about 79,500 MVA, spread over the length and breadth of the country. Availability of this gigantic transmission network is consistently maintained over 99% through deployment of state-of-the-art Operation & Maintenance techniques at par with global standards. POWERGRID wheels about 45% of total power generated in the country through its transmission network. The year has been another year of impressive financial performance. Gross Turnover for the year grew by about 25% to Rs. 5,082 Crore. Similarly, Profit after Tax during the year increased to Rs. 1,448 Crore from Rs. 1,229 Crore in FY , thereby registering a growth of about 18%. The Company s Gross asset base at the end of the financial year stood at Rs. 35,417 Crore as against Rs 29,015 Crore at the end of last financial year, an increase of about 22%. At the end of FY , the company has a Networth of Rs Crore and Capital Employed of Rs Crore. There has been an impressive growth in the earning potential of the company, which is reflected by the steady growth of return on Net Worth from the level of 5.63% in to 10.73% in During FY till December, 2008, POWERGRID achieved a turnover of about Rs Crore (Provisional) and Net Profit of Rs Crore (Provisional). Total fixed assets of the company have grown to Rs. 37,983 Crore (Provisional) till December The company undertook capital investment of Rs. 6,656 Crore during the financial year as against an outlay of Rs. 6,504 Crore. The requisite funds were mobilised from domestic market and proceeds of ongoing loans from multilateral funding agencies, The World Bank (WB) and Asian Development Bank (ADB) were utilised, besides internal resources of POWERGRID. During FY POWERGRID made an investment of Rs Crore (Provisional) for implementation of various projects surpassing the target of Rs.7624 Crore (RE) set for the Company. POWERGRID displayed excellent performance on project implementation front during FY Transmission projects worth about Rs. 6,000 Crore were commissioned during the year, thereby adding about 7,350 Circuit Kms, 9 EHV AC sub-stations and transformation capacity of more than 13,700 MVA to our transmission network. In the current financial year, POWERGRID has commissioned about 4642 Ckm. of transmission lines, 9 nos of new sub-stations and has added transformation capacity of about 6400 MVA. Major projects commissioned during FY include Transmission system associated with Kahalgaon II (Phase II), Sipat-I Transmission System Associated with Sewa II HEP, Sipat-II Supplementary Transmission System, System Strengthening in South-West part of Northern Grid, RAPP 5 & 6 Transmission System, Western Region Strengthening Scheme I, Western Region Strengthening Scheme III and National Load Despatch Centre(NLDC) etc. POWERGRID continued to implement its projects with economy and within stipulated time frame to derive maximum economic benefits. Its advanced and cost effective Integrated Project Management and Control System (IPMCS) for total project review and perpetual monitoring, has contributed significantly. BUSINESS DEVELOPMENT POWERGRID, an ISO 9001 certified company, has acquired in-house expertise at par with global standards in the field of Planning, Engineering, Load Despatch and Communication, Telecommunication, Contracting, Financial and Project Management. POWERGRID is offering consultancy not only in India but also on international level leveraging upon its strong in-house technical expertise developed over the years. POWERGRID is assisting various State Power utilities in the country for implementation of their transmission /sub-transmission projects on turnkey basis. POWERGRID emerged as a strong player in transmission sector in South Asia. POWERGRID is executing a 200 km 129

136 long 220 kv transmission line passing over Hindu Kush region at a height of 4000 mtrs above sea level, which is covered with snow for 9 months in a year in Afghanistan costing Rs.420 crore. POWERGRID has also secured consultancy assignments in Nepal, Bhutan, Nigeria and Dubai. Besides, for the proposed under-sea interconnection with Sri Lanka, a feasibility report has been prepared and already been submitted. Recently, Powergrid has been assigned 230kV transmission project in Myanmar, to be funded by Govt. of India by providing soft loan. The project consists construction of approx. 300 miles of 230kV transmission network, 50 miles of 66kV transmission line besides construction of 3 nos. new 230kV /66/11kV new substations, one no. 230kV substation extension and one no.66/11kv new substation. Major domestic consultancy assignment secured by POWERGRID during FY are given below : 1. Turnkey execution of Power evacuation system for Talwandi Sabo and Rajpura Power Project in Punjab for Punjab State Electricity Project. 2. An agreement has been signed with Orissa Power Transmission Corporation Ltd. (OPTCL) for turnkey construction of six Nos.132/33kV new sub-station, 4 Nos.132 kv bays and associated transmission lines. 3. An agreement has been signed with ONGC-Tripura Power Company Private Limited for turnkey execution of Pallatana-Silchar 400kV D/C and Silchar Bongaigaon transmission lines. GRID MANAGEMENT Planned rapid expansion of regional grids and their integration to form National Grid poses great challenges in Grid Operation & Management. Modernization of Regional Load Despatch Centres along with State/ sub-state Load Despatch Centres and dedicated communication schemes in all the regions Northern, Southern, North-Eastern, Eastern and Western Regions have been successfully completed. These centres have become epitome of technological excellence in grid operation through three tier hierarchical system, a unique feature in grid operation in the world. These are world s one of the largest and most complex projects. These complex projects involving the state-of-the-art technology have resulted in real time monitoring and control of the grid to enhance safety, security, reliability and stability in all regions of the country. These facilities minimize grid disturbance/failure and facilitate quick grid restoration, in case of failure. For overall co-ordination at national level, National Load Despatch Centre (NLDC) at Delhi with back up at Kolkata, has been commissioned in February, 09. NLDC is the apex body to ensure integrated operation of the national power system. POWERGRID, in its efforts to ensure delivery of quality power and to maintain grid discipline, implemented Availability Based Tariff (ABT) in all the five regions. This has stabilized the frequency to the prescribed band as per IEGC, i.e Hz to 50.5 Hz for large percentage of time in all the five regions. ABT has also encouraged inter-state and inter-regional bilateral trading resulting in meeting higher demand from the existing sources. Merit order operation of generating units is gaining importance and many States are utilizing this facility to utilize the system commercially. There is overall improvement in Grid stability and partial blackouts have been drastically reduced, while it has been possible to save the grid from total blackouts. With the development of various inter-regional transmission links, surplus power of Eastern Region is being gainfully utilized by the power deficit regions. POWERGRID was able to facilitate transfer of 43,000 MU of energy across the regions during the year , an increase of about 13% compared to previous year (i.e. 38,000 MU during ). Growth of inter-regional power exchange has helped in meeting more demand in energy deficit regions besides achieving overall economy. In FY , till March, 09 POWERGRID was able to facilitate transfer of 46,000 MU of energy across the regions. Efforts made by POWERGRID in modernizing the Regional Load Despatch Centers (RLDCs), implementation of Availability Based Tariff (ABT), power transfer through interregional links and effective Operation & Maintenance measures using State-of-the-Art technologies have led to overall improvement in power supply position in all parts of the country. POWERGRIID could successfully manage to arrest occurrence of any major grid disturbance in the country during last more than six years. Minor grid disturbances in regional grids have also come down significantly. RESEARCH & DEVELOPMENT POWERGRID has undertaken several technological innovations aimed at conserving Right-of-Way (RoW), minimizing impact on natural resources & human habitat and cost effectiveness in evacuation of power from the future generation projects. POWERGRID has been continuously upgrading and uprating its existing transmission lines to meet the shortterm requirements. 400 kv EHV AC lines with triple/ quad conductor and/ or application of series compensation have been implemented to handle bulk transfer of power over short distances. POWERGRID has taken initiative for development of major transmission highways using higher transmission voltage levels, i.e. 765 kv EHV AC and ±500 kv HVDC as a viable alternatives to achieve efficient utilisation of existing RoW and increased power transfer capability for transfer of bulk power over long distances. In order to meet the long-term power transfer requirement 130

137 Transmission Sub-station and to take care of environmental considerations, development of an overlaying Super Grid comprising 1200kV UHVAC system is being envisaged. At present, there are no standardized parameters available for 1200kV AC system and equipment at this voltage level are also not available commercially worldwide. POWERGRID has taken leadership initiative to carry out R&D in this area to develop the 1200kV system indigenously. A 1200kV UHVAC Test Station along with a 1200kV test line is being established at Bina substation in Madhya Pradesh (Western Region) of POWERGRID, as a collaborative effort with equipment manufacturers, for indigenous development of 1200kV equipment in India. Further, POWERGRID is also getting ready with its action plan to implement +800kV, 6000 MW HVDC Bi-pole line from North Eastern Region to Northern Region (Agra). This shall be the first of its kind (+800kV HVDC line) having the largest power carrying capacity and transmitting power over distance more than 2000 Kms. For keeping pace with increasing complexities of grid operation in a dynamically changing electricity market, continuous upgradation of the load dispatch centres through Wide Area Monitoring, Adoptive Islanding, Voltage Security Assessment, Dynamic Security Assessment leading to Smart Grid is also being explored. E-GOVERNANCE POWERGRID is systematically developing competency to deploy Information Technology for efficient and effective discharge of its functions. Some of the salient achievements are Web based Enterprise wide Information Portal as a step towards E-Governance, State-of-the-Art Multi Locational Video Conferencing System, Inspection Management System on internet based B2B platform, Engineering Project management system developed in-house, Enterprise wide Converged IT and Communication System, Establishment of state-of-the-art 1200 node IT network infrastructure at its Gurgaon office complex with innovative features like Wi-Fi. POWERGRID has also initiated action for implementation of ERP. Achievements of POWERGRID, in this area, have been recognized externally through: a) IT usage award 2003 conferred by Computer Society of India. b) Microsoft Windows Server 2003 challenge award (International competition participated by 75 countries) c) IT consultancy for Implementation of IT Policy at Delhi Transco d) POWERGRID implemented Video conferencing facility in the capacity of technical expert cum co-ordinator for MOP.and CPSUs under MOP. 131

138 CONTRIBUTING TO DISTRIBUTION REFORMS POWERGRID has taken lead role and is making valuable contribution in Govt. of India s nation building schemes of Accelerated Power Development and Reforms Programme (APDRP) and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) which are aimed at bringing qualitative improvement in the distribution and reform sector. Under APDRP, POWERGRID is acting as Advisor-cum- Consultant (AcC) to lend its managerial and technical expertise for improvement of distribution system in 177 distribution circles/ towns/ schemes spread over 18 States at an estimated cost of about Rs. 6,600 Crore. Out of this, 84% of the schemes have been commissioned and the remaining sanctioned schemes are expected to be completed by March, Further, POWERGRID is also implementing some of these schemes on deposit work basis under bilateral arrangement in the States of Bihar, Goa, Meghalaya, Uttar Pradesh, Tripura and Gujarat at a cost of about Rs. 1,100 Crore, most of which are nearing completion. Under RGGVY, POWERGRID had entered into a quadripartite agreement with Rural Electrification Corporation (REC), State Government and State Power utility, for undertaking rural electrification works in the country. POWERGRID has been assigned the job for execution of rural electrification works in 68 districts in the country covering around 74,000 villages at an estimated cost of about Rs. 6,400 Crore. Out of which 33,000 villages sanctioned during X Plan & infrastructure already established for electrification of 28,332 villages and 41,039 villages spread over 30 districts have been sanctioned recently for XI plan. LEVERAGING HUMAN CAPITAL TO ACHIEVE EXCELLENCE POWERGRID believes that its human resource consisting of about 7784 employees (as on Oct. 08) is the most important asset and accordingly, its policies are focused on development of human potential through skill upgradation, career enhancement and job rotation to achieve organizational objectives. An effective work culture has been established in the organization through empowerment, transparency, decentralization, practice of participative management etc. POWERGRID s growing productivity through an average annual growth of about 57% in the asset base of the company is witnessed with a manpower growth of only about 1.5% per annum. Human Resource Development (HRD) is considered as a strategic function in POWERGRID. During the year, the company has designed and executed business aligned management development, technical training and competency enhancement programmes on its own and also in collaboration with reputed management development institutes such as IIMs, XLRI, ASCI, MDI and technical training institutes that include IITs, NPTI, and Hotline Training Centre. To motivate the employees further, a committee of eminent experts is envisaged to be set up to examine the grievances of the employees and to suggest remedial measures. Besides, common dining facilities in Corporate Office at Gurgaon have had a positive impact on the work ethos and team spirit of the employees. Further, to ensure a quality living for the employees, group housing society was set up and a residential POWERGRID township in Sector-43 and Sector 46 at Gurgaon has already been completed and occupied. To further add value to the quality of life, a full fledged Higher Secondary School, well equipped Medical/ Health centre and a Recreation centre with all the facilities including gymnasium/ swimming pool etc. have been established in the township. CITIZEN S CHARTER POWERGRID formulated its Citizen s Charter providing a visible front of its objectives, mission, commitments, terms of service and its obligation to the stakeholders. This is also intended to provide all information on schemes, plans and practices to users outside the organisation as well as information about accessing the services. SOCIAL JUSTICE The Corporation has implemented the Govt. directives to take care of the interests of Scheduled Castes, Scheduled Tribes and Other Backward Classes. For monitoring the same, POWERGRID has nominated Liaison Officers in the Corporate Centre and Regional Establishments. Appropriate funds have been earmarked for the welfare of the SC/ST community and a number of welfare schemes have been implemented in the SC/ST populated villages near its establishments. MANAGEMENT OF ENVIRONMENTAL AND SOCIAL ISSUES Creating Sustainable Corporate Values POWERGRID, being in the infrastructure sector, is in enviable position to directly contribute to the society. Power, today drives all the economic activities in the society. POWERGRID, as the provider of inter-state transmission facilities and as operator of the countrywide electrical grids, has a pivotal role in country s power sector. The sustainability of corporate values is proven by the fact that they are in consonance with the values cherished by the society. The objectives of the POWERGRID are in alignment with the requirements of its stakeholders. End results of such value system are witnessed in all-round performance of the company, which has surpassed the targets. The company continues to make conscious efforts not only for sustaining such value-system but also inculcating desirable values. 132

139 Clean & Green Sub-station Environment and Social Management POWERGRID since its inception endeavors to protect the environment in all areas of its activity right from planning to completion and subsequent operation of the project. The transmission projects are environmentally clean and nonpolluting in nature and don t generate solid waste. The developmental activities carry certain environmental and social impacts, mostly minor in nature. In order to address such issues, POWERGRID had developed Environmental and Social Policy and Procedures (ESPP) in 1998 and subsequently upgraded the same in 2005, in line with trends and international best practices, to pre-empt all possible environmental issues. The ESPP outlines POWERGRID s approach and commitment to deal with environmental and social issues, relating to its transmission projects and lays its management procedures and protocol to mitigate the same. ESPP is dedicated to the firm commitment of POWERGRID to paradigm of sustainable development and appropriate supporting processes. The World Bank has selected POWERGRID s ESPP as the 1st candidate for Use of Country Systems (UCS) in India as POWERGRID ESPP meets legal requirement of Indian law and other multilateral funding agencies. ESPP implementation in last 10 years has drawn many appreciations/awards from various stakeholders. Even The World Bank has awarded POWERGRID Green Award 2006 on the commendable work done in the field of sustainability and has also recognized POWERGRID s Corporate Leadership in sustainability in its report Strengthening Institutions for Sustainable Growth Country Environment Analysis for India : August, POWERGRID has been the trendsetter in number of areas especially in the field of environment protection and towards its commitment to the development and well being of the community. During the FY , POWERGRID achieved another milestone in its quest for excellence in quality management and got certified to Social Accountability Standard, SA 8000:2001. Apart from this, POWERGRID has taken many initiatives towards sustainability, such as: Reduction in forest area area requirement in implementation of transmission lines. Developing compact substations to have barest minimum land requirement to minimize social impact. Innovative tower designs have been able to reduce the adverse ecological impacts especially in ecologically sensitive regions. 133

140 Multi-circuit and Compact towers to reduce ROW requirement. ROW reduced to minimize impact: From 85 meter to 64 meter for 765 kv From 52 meter to 46 meter for 400 kv Provision for Rain-water Harvesting and collection of even used water for its conservation and recharge of ground water at new sub-stations. Massive plantation in all its substations, 2 to 4 areas of land afforested with suitable species of plants in consultation with local forest department. POWERGRID has become the first Company in India to introduce 400 KV Compact Single Pole type Tower to tackle Right-of-way (ROW) and other environmental and Social problems. Made a beginning in developing one of its prestigious and technologically more advanced project connecting North-East to Northern Region for transfer of clean and green power from far-long areas of North-East to Northern Region as a Clean Development Mechanism (CDM) projects. POWERGRID believes in total transparency in dealing with important issues. It ensures that all stakeholders are well informed and involved through a positive and open relationship. POWERGRID s social entitlement framework for its Project affected Persons is based on progressive trends in Indian policies and National Policy on Resettlement and Rehabilitation (R&R), with respect to the inclusion of Project Affected People (PAPs), and the nature and extent of compensation and rehabilitation measures. POWERGRID is of firm opinion that to succeed highest standards of corporate responsibility are to be maintained not only towards our employees but to the consumers, societies and world in which it operates. Therefore, we shoulder community responsibility as part of our social responsibility through various community development activities in areas around our establishments as well as promoting socio-economic development and enriching the quality of life of the community. As a socially responsible organization POWERGRID have taken many initiatives towards community empowerment by providing basic infrastructure facilities to affected population. POWERGRID is committed to carry forward such activities of community development to augment resource base through people s participation. TRANSPARENCY IN OPERATION In POWERGRID, System & Procedure Manuals have been developed for most of the functional areas like Construction, O&M, Human Resource, Quality, etc. and well defined Works & Procurement Policy and Procedure (WPP). POWERGRID is the first utility in Indian power sector to develop Environmental and Social Policy & Procedures (ESPP) with public consultation. POWERGRID follows fair, equitable and transparent policies for all stake holders. Towards maintaining transparency in the procurement process, the invitations for bids (IFB) are widely published in National Dailies, Trade Journals and webcast on websites of the company/ MOP/CEA. Copies of the same are sent to all qualified contractors associated with POWERGRID in the past. In addition, the IFBs related to ICB are also published in international newspapers along with copies to Embassies / High commissions. To continue this process further, committees of eminent experts have been constituted to advise on various issues related to procurement, project implementation, financial and environmental & social safeguards aspects etc. The purpose of such committees is to bring more transparency & efficiency in our decision making process. The committees would not only provide guidance but critically evaluate POWERGRID s working. CONVERGENCE WITH TELECOM POWERGRID is establishing its broadband optical network on its overhead transmission lines, which is sturdy, secure and free from any interference by pests or vandalism. This is obvious because the optical network would run along with EHV power transmission lines which would be impossible to interfere with. On the other hand, other telecom players are establishing underground networks, which could suffer from problems of interference, deliberate or otherwise. Added to this, POWERGRID has provided overhead links with self resilient rings to ensure highest availability of the network. Out of the total planned telecom network of 20,660 Kms, POWERGRID has already established a network of over 20,000 Kms (As of March, 2009) and enroute has connected all major cities viz. Delhi, Mumbai, Chennai, Kolkotta, Bangalore, Hyderabad etc. rural and remote areas in the country. POWERGRID has deployed state-of-the-art Dense Wave Division Multiplexing (DWDM)/ Synchronous Digital Hierarchy (SDH) technology and is utilizing the latest G 652 fibres for its Optical Fiber Composite Overhead Ground Wire (OPGW) which is installed on Extra High Voltage (EHV) 400/220 KV transmission lines. The deployment of flexible network architecture of high capacity DWDM/ SDH is compatible with all the upper layer equipment including Infrastructure Provider (IP) routers, Asynchronous Transfer Mode (ATM) equipment etc. and can be integrated with the system. The network is scalable from present capacity of 120 Gbps to 15 Terabit capacity and is capable of both Layer 1 - DWDM/ SDH and Layer 2 - switching using Ethernet over SDH. The network supports Ethernet over DWDM/ SDH on fast Ethernet and Gigabit Ethernet levels. The bandwidth 134

141 capacity can be enhanced to terabit level and can be provided as and when required. An Integrated Network Management System (NMS) with National level control center in Delhi alongwith Regional level control centers at Kolkotta, Bangalore, Mumbai provides real time monitoring of the telecom network. NMS can monitor each and every customer trail and provide online information for quick remedial measures. The NMS is also capable of working with third party equipment through interface for third party Element Management System (EMS) system. The network management system provides real time monitoring of the network and the services are available round the clock in the event of any problem and for quick remedial measures. POWERGRID is also exploring Joint Venture opportunities with potential telecom players for enhancing its business. POWERGRID s Broadband Telecom network can provide the convergence of various traffic viz. voice, fax, data and multimedia over a single multipurpose network. Based upon the high availability and competitive prices, POWERGRID has leased out capacities to various Existing/Planned Inter-Regional Power Transfer Capacity (MW) EAST-NORTH customers which include NLDOs, ILDs, ISPs, Call Centers, Government Agencies, Corporates etc. who are extremely satisfied customers. In addition to the already obtained Infrastructure Provider license-i (IP-I), IP-II license and ISP category A license to provide internet services in the country, POWERGRID has obtained National Long Distance Operator (NLDO) License in year 2006 which will help to broaden up its customer base by reaching directly establishments such as Govt. Agencies/ departments, Defence Services and Corporates etc. Telecom services are being provided to various leading telecom players. POWERGRID is also exploring strategic alliances with various State Electricity Boards (SEBs), which shall enable it to reach rural, uneconomic and backward areas by utilizing their T&D system and fulfilling their E-governance needs. This will supplement Government of India s effort to accelerate the application of Information Technology and in bridging the digital divide gap and providing telecom services at most economic prices for the benefit of common man. Annexure I Existing Addition in At the end (Mar. 09) XI Plan (Balance) of XI Plan Dehri-Sahupuri 220 kv S/c Sasaram HVDC back-to-back Muzaffarpur-Gorakhpur 400 kv D/c (with Series Cap+TCSC) Patna Balia 400kV D/c (Quad) Biharshariff Balia 400kV D/c(Quad) Barh Balia 400kV D/c (Quad) [Barh Tr. System] Sasaram - Fatehpur 765kV S/c [DVC,NK, Maithon Tr. System] Gaya - Balia 765kV S/c [DVC,NK, Maithon Tr. System] Sasaram bypassing(additional capacity) Sub-total EAST-WEST Budhipadar-Korba 220 kv 3 ckts Rourkela-Raipur 400 kv D/c with series comp.+tcsc Ranchi Sipat 400 kv D/c with series comp Rourkela-Raipur 400 kv D/c (2nd) with series comp [East-West Strengthening] Ranchi - WR Pooling Pt. 765kV S/c Sub-total

142 WEST- NORTH Vindhyachal HVDC back-to-back Auriya-Malanpur 220 KV D/c Kota - Ujjain 220 KV D/c Gwalior-Agra 765 kv S/c[ Sasan Tr. System] Gwalior-Agra 765 kv S/c 2nd ckt [NR-WR inter-regional strengthening scheme] Zerda-Kankroli 400kV D/c [NR-WR inter-regional strengthening scheme] Sub-total EAST- SOUTH Gazuwaka HVDC back-to-back Balimela-Upper Sileru 220kV S/c Talcher-Kolar HVDC bipole Upgradation of Talcher-Kolar HVDC Bipole Sub-total WEST- SOUTH Chandrapur HVDC back-to-back Kolhapur-Belgaum 220kV D/c Barsur L. Sileru 220kV HVDC Monopole * Ponda Nagajhari 220kV D/c South - West HVDC link Sub-total EAST- NORTH EAST Malda - Bongaigaon 400 kv D/c Birpara-Salakati 220kV D/c Siliguri - Bongaigaon 400 kv D/c (Quad) [Palatana Tr. System] Sub-total NORTH EAST-NORTH NER Pooling point - Agra HVDC Bipole [Lower Subansiri Tr. System] Sub-total Various 132kV inter-regional links Total (Cumulative) 20,750 17,900 38,

143 CHAPTER POWER FINANCE CORPORATION LTD 1. OBJECTIVES & STATUS The Power Finance Corporation Limited (PFC) incorporated in 1986 is a leading Power Sector Public Financial Institution and a Non-Banking Financial Company, providing fund and non fund based support for the development of the Indian Power Sector. Occupying a key position in the Government of India s plan for the power sector, PFC performs a major role in channelizing investment into the power sector and functions as a dedicated agency for its development. PFC is a Schedule-A, Navratna CPSE, under the administrative control of the Ministry of Power, with 89.78% shareholding of the Government of India. 1.2 The Corporate Headquarter of PFC is located at New Delhi. It has two Regional Offices at Chennai and Mumbai. 1.3 The main objectives to be pursued by PFC are enumerated in the Memorandum of Association of PFC and are as under:- To Finance: Power Projects, in particular, Thermal and Hydro Projects. Power Transmission & Distribution works. Renovation & Modernization of power plants. System Improvement and Energy Conservation schemes. Maintenance and repair of capital equipment etc. Survey and investigation. Studies, schemes and experiments. Other energy sources and to Promote and organize consultancy services. 1.4 All the three main Divisions of PFC namely, Projects, Finance and ID&A are now ISO 9001:2000 certified. 1.5 PFC had received MoU Excellence Award for 5th time for being amongst the Top 10 PSUs and consistently rated Excellent by Government of India based on MoU Performance since (Very Good in ). 1.6 PFC is a Schedule A PSE according to the DPE guidelines and accorded Navratna status on 22nd June 2007 by Government of India, keeping in view PFC s continued impeccable financial and operational performance and its contribution to the development of Indian Power Sector. This has been accomplished by PFC in less than a decade as it was earlier a Mini- Ratna Category-1 PSE in the year Navratna status provides PFC a greater flexibility and autonomy in terms of making investment and operational decisions. This status would help PFC further consolidate position in the Power Sector for meeting the ever growing needs of Indian Power Sector. 1.7 PFC has been providing financial assistance to State Power Utilities and Municipal Utilities, besides playing a catalytic role in bringing about overall improvement in the power sector performance. In line with the GoI policy initiatives, PFC has expanded its lending portfolio to cover the joint, central and private sector. The Corporation has widened its range of services / facilities by introducing bridge loan, leasing, supplier s credit assistance for studies / consultancies / trainings, bill discounting and rediscounting, working capital schemes, bonds, shares, guarantees services etc. 1.8 PFC s clients include State Electricity Boards and state departments engaged in the development of power projects (like irrigation department), state power utilities, central power utilities, state power departments, private power sector utilities (including independent power producers), joint sector power utilities, power equipment manufacturers and power utilities run by local municipalities. These clients are involved in various aspects of the generation, transmission and distribution and related activities in the power sector in India. 1.9 Funds by PFC are not pre-allocated to the states. PFC s funding criteria are based on borrower s credit worthiness and project viability PFC s primary activities consist of funding power projects and advisory services to the Indian power utilities. Consistent with its developmental role, PFC places emphasis on the Institutional Development of State Power Utilities. PFC also conducts training programs and workshops on various topics and critical issues affecting the Indian Power Sector PFC has been enjoying highest ratings both from domestic as well as international credit ratings agencies as below:- 137

144 3.3 PFC s Performance (cumulative) during last two decades (since inception) as on 31st March, 2009 is as under:- DOMESTIC RATING AGENCY Rupee Borrowing Long Term Short Term CRISIL AAA P1+ ICRA LAAA A1+ International Rating Agency Moody s Baa3 Fitch BBB- At par with Sovereign Rating Standard & Poor s BBB- 2.0 PFC s ROLE IN THE POWER SECTOR 2.1 PFC in its role of financial institu tion funds most of the power utilities and helps them in completing their generation projects (Hydro as well as Thermal), transmission projects and system improvement projects in time. Distribution networks of number of towns in various states have been strengthened with PFC s financial assistance. 2.2 PFC has also been providing grant / interest free loans/ soft loans to State Government / State Power Utilities and State Electricity Regulatory Commissions to carry out reforms related studies. Technical assistance from multilateral agencies is also channelized as grant to support further studies. PFC has been conducting workshops/seminars for dissemination of vital information concerning the improvements in the power sector and the emerging requirements, and also conducting training for power sector personnel. 2.3 PFC provides financing products and fee-based services to projects related to the power sector. PFC generally disburses funds either directly to a supplier or contractor of a project or by way of reimbursement to the borrowers against satisfactory proof of eligible expenditure on the project. In case of independent power projects, PFC disburses funds through a trust and retention account. PFC provides the following products and services for its clients: Rupee term loans, foreign currency loans, bridge loans, short term loans and reform-linked transitional loans; Bill discounting, equipment leasing, buyers line of credit, loans to equipment manufacturers, line of credit for the import of coals; Debt refinancing; Letters of comfort; and non-fund based products such as guarantees. Consultancy & advisory services. 3.0 FINANCING OF POWER PROJECT 3.1 Besides the main activities as listed at para 1.3 above, PFC is also financing installation of capacitors, Communication & Load Dispatch, Non-Conventional Energy Sources, Studies, Consultancy & Training and Computerization. 3.2 PFC is funding all types of power utilities including State Electricity Boards, State sector power utilities like state generation, transmission and distribution corporations/companies, State Power Development, State Electricity Departments and other State Departments associated with the development of power projects. Besides this PFC is financing the Central Sector Power Utilities, Joint Sector Utilities, Cooperative Sector Power Utilities, Municipal Utilities, Private Sector Utilities and Independent Power Producers. The major beneficiaries of PFC financing continue to be the state power utilities. Sanctioned Disbursement Rs.2,33,978 Crore Rs.1,13,119 Crore 3.4 PFC is also complementing the Accelerated Development & Reform Programme (APDRP) of Govt. of India by providing funding support to the power utilities for the schemes identified under APDRP 4.0 PERFORMANCE HIGHLIGHTS 4.1 PFC has been a profit-making enterprise right since inception and has registered impressive growth in its net profit every year. 4.2 A glance of PFC s financial performance for the past 3 years, is as under: 138

145 FINANCIAL PERFORMANCE AT A GLANCE (LAST 3 YEARS) (Rs. crore) Sanctions 31,146 69,498 57,030 Disbursements 14,055 16,211 21,054 Profit before tax 1,512 1,788 1,990 Profit after tax 986 1,207 1,355 Dividend (GoI+Public) In the FY , PFC had paid a dividend of Rs crore to Government of India PFC has earned net profit of Rs.1,355 crore during the year PFC has consistently maintained a high rate of recovery of more than 95%. In FY , the recovery rate of the principal amount was 99.47%, and the overall recovery rate was 97.27%. In FY , In FY recovery rate of the principal amount was 99.11% , recovery rate of the principal amount was 99.92%. 4.5 PFC received Dalal Street s First DSIJ Awards 2009 PSU having the Highest Profit Per Employee. 4.6 PFC received the prestigious KPMG-Infrastructure Today Award 2008 for Most Admired Government Enabler-Power category. 4.7 PFC was conferred with India Power Award 2008 for its association as implementation agency with Distribution Reform Upgrades and Management (DRUM) Programme of Government of India. 4.8 PFC Ranked 2nd on the basis of Total Income in FIs/NBFCs/Financial Sector in Dun & Bradstreet s India s Top 500 Companies, OPERATIONAL HIGHLIGHTS The Company issued Sanctions for Rs. 57,030 Crore of loans and grants during the financial year as on 31st March 2009 compared to Rs.69,498 crore sanctioned during similar period of the last year. An amount of Rs.21,054 Crore was Disbursed during the same period to State, Central and Private Sector entities, compared to Rs.16,211 crore disbursed during similar period last year. With this, cumulative Sanction of Rs.2,33,978 Crore and Disbursement of Rs. 1,13,119 Crore of loans and grants have been made by the Company as on 31st March, RESOURCE MOBILISATION DOMESTIC PFC mobilized funds of Rs. 21,483 Crore from the domestic market during from the domestic markets at competitive rates through Bonds, Term loans from Banks and other Financial Institutions. As on 31st March, 2009, Company raised of Rs. 21,483 Crore, out of which Rs.5,350 Crore were raised through long and medium term loans from banks, Rs.3,324 Crore as short-term loans from various banks and Rs.12,809 Crore by way of Taxable Bonds. "Hon'ble Union Minister of Power, Shri Sushilkumar Shinde launched the web-portal of "Restructured Accelerated Power Development Programme (R-APDRP)". PFC has been designated the Nodal Agency for implementation of this ambitious Programme." 139

146 7.0 RESOURCE MOBILISATION EXTERNAL PFC mobilized funds through External Commercial Borrowing (ECB) of US $ 1.22 million through ADB, by way of line of credit sanctioned to PFC. PFC signed a Memorandum of Understanding (MoU) with Export-Import Bank of United States on 14th May US EX-IM Bank will make available a special delegated line of credit of up to USD 800 million to PFC to be used to purchase goods and services from US for power projects in India. The line of credit is available for 2 years w.e.f. 16th April, POWER LENDERS CLUB PFC had established Power Lenders Club with Life Insurance Corporation of India, HUDCO and 10 Indian Banks to provide single window financing solutions for clients in the power sector and enable projects to achieve faster financial closure which will further facilitate the process. The Power Lenders Club has already been operationalised with its first syndication assignment for IFFCO, Chattisgarh project. Subsequently, HUDCO and eight other banks have also joined the consortium which will further facilitate the process. 9.0 POWER EXCHANGE PFC along with NSE and NCDEX has promoted Power Exchange India Limited (PXI). The share of PFC in equity of PXI will be up to 7% of the Share Capital of PXI which shall not exceed Rs Crore. PFC has become Professional Clearing Member (PCM) of Power Exchange to support the activities of Trading Members. Apart from the above, PFC, NTPC, NHPC and TCS have jointly promoted National Exchange Limited a company incorporated under The Companies Act, 1956, with an authorized capital of Rs.50 Crore. PFC shall hold 16.66% of the share capital. The Company is yet to start its operation. These Power Exchanges will have a nationwide presence in the form of electronic exchange for trading in power. Apart from power trading, transmission clearance will also be taken care of by power exchange simultaneously. It will provide its members a transparent, neutral and efficient electronic platform for power trading FINANCING RENEWABLE ENERGY GENERATION PROJECTS AND FACILITATION OF CDM BENEFITS PFC has established a Renewable Energy and CDM group in August, 2008 to focus and accelerate the development of business in Renewable Energy Generation Projects such as Wind, Biomass, Small Hydro, Solar etc. PFC takes higher exposure in Renewable Energy Generation Projects and offer special interest rates for such projects. The promoters of Renewable Energy Generation Projects in all sectors i.e. Central, State,Private Sector etc are eligible for taking financial assistance for their upcoming Projects / Debt refinancing. PFC is also facilitating State Power Utilities in availing CDM benefits for R&M of old thermal and hydro projects, as per mandate from MoP. PFC has been able to tie-up a grant of $ 1 million under ADB TA 4992-IND for facilitation to states right from project identification up to the registration of project with UNFCCC. A number of R&M projects in various states have been identified under this grant program and are under different stages of CDM cycle CONSORTIUM LENDING 11.1 PFC, in association with LIC and four other Indian Banks had established a Power Lenders' Club (PLC) in August 2005 to provide single window financing solutions for clients in the private power sector and to achieve expeditious financial closure. Subsequently, with the joining of HUDCO and eight other Indian Banks, PLC has now emerged as a 21 members strong Club The Consortium approach offered by Club would provide a comprehensive solution to the debt requirements of these projects without the developer having to queue up before a number of lenders to arrange for the funds With the aim to give impetus to Consortium Lending Operations, particularly through the PLC, PFC has recently established a Consortium Lending Group (CLG). The CLG is working towards harnessing the huge business potential offered by the Power Sector. CLG is interacting with the Banks/FIs to make an assessment regarding the cumulative exposure which could be taken by PLC members with a view to identify and firm up the various power projects to meet their funding requirements and to facilitate their expeditious financial closure. The indicative exposure is of the order of Rs.20,000 crs. as per discussions with some members. In addition, certain members have shown their willingness to take the exposure depending upon due diligence of the projects, within industry exposure norms of bank The PLC has already adopted a Common Loan Approach Form and standardiszed the loan documents for the convenience of the borrowers and lenders. To begin with, PFC alongwith some of the members of PLC/other lenders have funded four power projects (350 MW domestic coal based project 140

147 of RKM Power Gen. in Chattisgarh, 20 MW Bagasse based project of Vishwanath Sugar in Karnataka, 820 MW Konaseem Gas Based Power Project in AP, 10 MW Biomass based project of ASN Power) where PFC was the lead FI. During the year , PFC circulated the Project Information Memorandum (IM) in respect of RKM Phase-II (3x360 MW) project in Chattisgarh, Indiabulls' Sophia Power (2x660 MW) project in Maharashtra and ASN Power (10 MW) project in Maharashtra (for balance funding) to the members of PLC/other Lenders for loan syndication. Further, the IM was also prepared for Jindal Steel & Power Ltd (6x135 MW) project to be set up in Orissa With the consistent efforts, PFC has obtained various new proposals for consideration of debt syndication including Krishnapatnam UMPP(3960 MW) in AP where PFC is acting as co lead, NSL Group's Hydro projects (150 MW) in HP, Reliance Group's Parbati Koldam Transmission project, East Coast Energy's (2x660 MW) coal based project in AP, Wardha Power Company's coal based project (3600 MW) in Chattisgarh. These projects are under consideration for sanction of loan by PFC and for debt syndication POWER EQUITY CAPITAL ADVISORS PVT. LTD. The total requirement of funds in power sector is estimated to be about Rs. 10,000,00 Crore in the XIth plan in order to add generation capacity of about MW and also for strengthening of Transmission & Distribution network. This leads to approximately Rs. 3,000,00 Crore of equity requirement, which may require a small portion to be tied up through long term strategic investors. Accordingly, in order to help power sector to achieve its targets for the 11th Plan and thereafter, for filing up equity gap in new projects or to unlock the value of equity of promoters in their existing ventures to enable them to undertake expansion projects, PFC, along with eminent professionals in the field of power and finance, has established a company, viz. Power Equity Capital Advisors Pvt. Ltd.(PECAP). PECAP has recently commenced its business activities. The company wouldprovide equity syndication services to clients in power sector and facilitate t h e flow of institutional funds into power sector. The company is in the processof constituting an equity consortium of banks/fis/insurance Companies/Private Equity players etc. to channelize equity funds in Indian power sector. 13 FACILITATION GROUP PFC is looking at the opportunity of expanding its lending business in thefollowing areas:- Development of Fuel supply sources like Coal/Oil/Gas and its distribution (Rail network/gas pipeline etc.) for Power Sector 1. Development of Coal Blocks / mines 2. Setting up of Coal Washeries / Coal Beneficiation plants 3. Transportation of Coal, etc. 4. Expansion of gas pipelines, etc. Establishment of Equipment Manufacturing capabilities for Power Sector 1. Capital expenditure 2. Working Capital / Short term, Medium term 14.0 RISK MANAGEMENT 14.1 ASSET LIABILITY MANAGEMENT Asset Liability Management Committee (ALCO) monitors risks related to liquidity and interest rate and also monitors implementation of decision taken. The liquidity risk is being monitored with the help of liquidity gap analysis. The Asset Liability Management framework includes periodic analysis of long term liquidity profile of assets, receipts and debt service obligations. Such analysis is made every month in yearly buckets for the next 10 years and is being used for critical decisions regarding the time, volume and maturity profile of the borrowings, creation of new assets and mix of assets and liabilities in terms of time period (short, medium and long term). Considering the cash liquidity gap analysis, the committee managed the liquidity risk through a mix of strategies, including by following a forward-looking resource raising program based on projected disbursement and maturity obligations. The interest rate risk is also managed through a mix of strategies including the process of liability management that involves matching the weighted average maturity of assets and liabilities and reduction in gap of rate sensitive assets and liabilities FOREIGN CURRENCY RISK MANAGEMENT PFC has put in place Currency Risk Management (CRM) policy to manage risk associated with the foreign currency borrowings. The Company enters into hedging transactions to cover exchange rate and interest rate risk through various instruments like currency forward, option, principal swap and forward rate agreements. As on 31st March, 2009, the total foreign currency liabilities are USD 442 million, JPY 3,462 million and Euro 31 million. On an overall basis, the currency exchange rate risk and interest rate risk is covered to the extent of 52% and 100 % respectively through hedging instruments and lending in foreign currency. 141

148 14.3 ENTERPRISE-WIDE INTEGRATED RISK MANAGEMENT PFC has constituted the Risk Management Committee of Directors to monitor various risks, examine risk management policies & practices and initiate action for mitigation of risks arising in the operations. To facilitate this, the Company has decided to put in place an Integrated Enterprise Wide Risk Management Policy (IRM Policy). The objective of IRM policy is to establish and implement effective risk management by identifying, assessing, prioritizing, monitoring and managing risks in a planned and coordinated manner. The Company has already prepared IRM Policy Guidelines and Procedures. The Risk Management Framework under the IRM Policy includes risk management structure, risk portfolio management, measuring and monitoring of risks, risk optimization and risk management strategy. For monitoring and controlling the risks, the company has already identified the risks, the root causes, mitigating factors, key performance indicators and prioritization of risks. For implementation of Integrated Wide Risk Management framework, Risk Management Committee of Board constituted Risk Management Compliance Committee and a separate unit namely Corporate Risk Assurance unit (CRA) has also been set up for implementation and monitoring of identified risks EXTERNAL COMMERCIAL BORROWINGS Due to tight international credit market conditions, PFC did not mobilize any funds through ECB in the financial year EXTERNALLY AIDED PROJECT PFC had 25 USD million Line of Credit (LoC) facility with ADB for utilization for R&M of thermal power plants and for Transmission and Distribution schemes, which got expired on 30th Sept, Under this facility PFC availed USD million in total. PFC has a Line of Credit of Euro million line of credit from KfW to finance RM&U of Hydro Electric Projects. Funds from the facility would be used to finance RM&U schemes of six HEPs of Uttrakhand Jal Vidyut Nigam Limited (UJVNL). The contract for detailed feasibility studies of these projects has been awarded by UJVNL. PFC is negotiating with EDC, Canada for another Line of Credit facility which would be utilized for procuring good and services from Canada. Funds from the facility would be used for hydro electric projects of UJVNL INSTITUTIONAL DEVELOPMENT OF BORROWERS PFC is supporting reforms, institutional strengthening and development of State Power utilities (SPUs). PFC leverages its financial assistance to SPUs to undertake reforms, implementation of Electricity Act etc. for efficient and sustainable development of power sector. The major initiatives taken by PFC are as follows: CATEGORIZATION OF POWER UTILITIES PFC classifies State power utilities, into categories as A+, A, B and C based on operational & financial performance parameters of the utilities. This categorization is carried out biannually. The categorization enables PFC to determine credit exposure and differential loan pricing mechanism. As on 31st March, 2009, 10 utilities were in category A+, 33 utilities were in category A, 25 utilities were in category B and 20 utilities were in category C. PFC is also stipulating appropriate conditions relating to implementation of reforms and improvement of performance while sanctioning financial assistance to its borrowers GRANT / SOFT LOANS FOR STUDIES PFC provides grants and soft loan for studies related to reform and restructuring, institutional strengthening & development, implementation of Electricity Act 2003 etc. to state power utilities aiming at improvement in performance in the areas of financial, technical and commercial operations. During FY , PFC sanctioned grant of Rs. 100 lacs to KSEB and Rs lacs to Govt. of Jharkhand for availing consultancy services for reform and restructuring of their state power sector. During the above period, PFC also disbursed an amount of Rs lacs to Indraprastha Power Generation Co. Ltd (IPGCL), Delhi for ongoing study on re-organization of IPGCL and Pragati Power Corporation Ltd ANNUAL AND QUARTERLY PERFORMANCE REPORT OF STATE POWER UTILITIES. PFC is bringing out research report on the performance of each of the state power utilities (SPUs) on a quarterly basis. The report contains key operational and financial performance parameters, reform status, status of implementation of Electricity Act 2003, areas of concern and conditions for improvement of performance etc. The first quarterly research report was brought out for April June 2006 quarter covering 11 states and 20 power utilities and since then the number of utilities covered have been progressively increased and the report is regularly issued in time. The report is sent to the stakeholders in the power sector and is acknowledged as good effort and is useful in assessing the health of the state power utilities at macro level, flagging the key issues for review and timely corrective actions/ measures for improvement of performance of SPUs. During FY , PFC has issued performance 142

149 report for the quarters Jan- March 2008, April- June 2008, and July September 2008 covering 30 state power utilities in each quarter and for Oct- December 2008, covering 33 state power utilities. PFC brings out a Report on the Performance of State Power Utilities. The 5th Report covering performance of State Power Utilities for the years to has already been published. The draft Report covering performance of 77 utilities out of total 90 utilities has been prepared and submitted to Ministry of Power as per the targets set in MoU. The Report analyses the financial and operational performance e.g. profitability, gap between average cost of supply and average revenue realization (Rs./kwh), networth / capital employed, receivables, payables, capacity (MW), generation (Mkwh), AT&C losses etc and consumption pattern of the sector at utility, state, regional and national level. The 6th edition of the Report on the performance of State power utilities for the years to is being finalized for issuance SUPPORT FOR INFORMATION TECHNOLOGY IN STATE POWER UTILITIES The implementation of reforms in power sector has led to the sector witnessing a rapid growth and has exposed it to a competitive and challenging environment, which is commercially oriented and demanding. The changing environment has necessitated the power utilities to be more responsive to market requirement by way of enhancing efficiency and effectiveness. PFC intends to continue to support the structural reforms in power sector and take it to next generation reforms, where the utilities shall need to adopt the new technological innovation and up-gradation available in the market. This includes wide application of information technology and communication systems in the areas of MIS, accounting, metering, billing and collection, inventory management, Human resources, advanced areas such as enterprise Resource Planning (ERP), Local and wide Area Networking, GIS/ GPS based consumer indexing and asset tracking system, consumer call center, etc. While the Restructured APDRP (R-APDRP) is focusing on IT Solutions for distribution utilities, PFC is focusing on IT solutions for Generation and Transmission Utilities. During FY , PFC sanctioned financial assistance of Rs crs (Chattisgarh SEB Rs. 8 crs, Power Transmission Corporation of Uttrakhand Rs crs, MSETCL Rs. 20 crs and UPRVUNL Rs crs) for various such schemes RESTRUCTURED ACCELERATED POWER DEVELOPMENT AND REFORM PROGRAMME (R-APDRP) Ministry of Power, Govt. of India, has launched the Restructured Accelerated Power Development and Reforms Programme (R-APDRP) in July 2008 with focus on establishment of base line data and fixation of accountability, and reduction of AT&C losses through strengthening & up-gradation of Sub-Transmission and Distribution network and adoption of Information Technology during XI Plan. Project area shall be towns and cities with population of more than 30,000 (10,000 incase of special category states). Rural areas with heavy loads requiring feeder segregation may also be included in the project areas. Projects under the scheme shall be taken up in two parts. Part-A shall include the projects for establishment of baseline data and IT applications for energy accounting/auditing & IT based consumer service centers. Part-B shall include regular distribution strengthening projects and will cover System improvement, strengthening and augmentation etc. The programme is of the size of Rs. 51,577 Crore out of which Rs.10,000 Crore is for Part A activities, Rs.40,000 Crore is for Part B activities and the remaining Rs.1,177 Crore is for enabling activities to be implemented by Ministry of Power (Part-C). The entire amount of GoI loan (100%) for part A of the project shall be converted into grant after establishment of the required Base-Line data system within a stipulated time frame and duly verified by Third Party Independent Evaluation Agency and upto 50% (90% for special category States) loan provided for Part-B projects shall be converted into grant progressively on achievement of AT&C loss reduction targets. If the utility fails to achieve or sustain the 15% AT&C loss target in a particular year, that year s tranche of conversion of loan to grant will be reduced in proportion to the shortfall in achieving 15% AT&C loss target from the starting base-line assessed figure. An amount equivalent to 2% of the grant for Part-B projects is proposed as incentive of utility staff in project areas where AT&C loss levels are brought below 15%. Power Finance Corporation Limited (PFC) has been designated as the nodal agency to operationalise the programme and will act as a single window service under R-APDRP and will coordinate with agencies involved such as MoP, APDRP Steering Committee, CEA, NTPC, PGCIL, other statutory bodies (if any) and various Consultants for speedy and timely completion of projects and thus assist the utilities in achieving loss reduction targets. A Steering Committee under Secretary (Power) shall sanction projects and monitor the implementation of the Scheme. PFC has already appointed a Process Consultant for converting the System Requirement Specifications into a model R-APDRP Bid Document and has done the empanelment of the IT Consultants and IT Implementing Agencies is in progress. The web portal of R-APDRP has also been launched by PFC. Further, during FY , an amount of Rs

150 Crore has been sanctioned for 599 projects to 13 states under Part-A of the Scheme and correspondingly the disbursement of Rs.325 Crore to 7 States are done FINANCING TO STATE AND CENTRAL SECTOR GENERATION PROJECTS 18.1 HYDRO PROJECTS During the year , as on 31st March, 2009, Hydro Generation Project loans amounting to Rs.7,914 Crore were sanctioned and an amount of Rs. 3,575 Crore were disbursed. The cumulative amount sanctioned for Hydro Generation Projects is Rs.31,220 Crore out of which Rs.17,813 Crore has been disbursed till 31st March, The major projects supported during the current financial year as on 30th Nov 2008 are Tipaimukh HEP (1500 MW) of NEEPCO, Omkareshwar HEP-Debt Refinancing (8x65 MW), Baglihar HEP Stg-I (3x150 MW) of J&K State Power Development Corporation Ltd., Maneri Bhali Stage-II HEP of Uttaranchal Jal Vidut Nigam Ltd., Relli-CHU HEP (3x4 MW) of Sikkim Power Development Corporation Ltd. and Ganol HEP (3x7.5 MW) of Meghalaya SEB THERMAL PROJECTS PFC is providing financial support to the Thermal Generation Projects for their timely completion. During the year as on 31st March, 2009, the Company has sanctioned loans amounting to Rs. 26,430 Crore and disbursed Rs. 11,305 crore. Additional Rs.10,000 Crore is sanctioned to NTPC as Term Loan and disbursed Rs. 500 crore. The cumulative financial support provided by the Company for Thermal Generation Scheme is Rs.1,21,317 Crore out of which Rs.46,740 Crore has been disbursed till 31st March The major Thermal Generation projects sanctioned to State & Central sector are OBRA C TPS (2x500 MW), Uttar Pradesh, Bellary TPS (1x500 MW), Karnataka, RKM Powergen Unit (3x360 MW), Rajpura TPP (for land) of Punjab State Electricity Board, Chhabra TPS unit 3 & 4 (2x250 MW) of Rajasthan Rajya Vidyut Utpadan Nigam Ltd. and Raghunathpur TPS (2x600 MW) of Damodar Valley Corporation RENOVATION MODERNISATION & LIFE EXTENSION 19.1 THERMAL PROJECTS During the year as on 31st March, 2009, loans worth Rs. 214 Crore were sanctioned for R&M and Life Extension of thermal power plants and an amount of Rs. 510 Crore has been disbursed. Cumulatively, an amount of Rs Crore has been sanctioned and Rs Crore stands disbursed, till 31st March, HYDRO PROJECTS During the year as on 31st March, 2009, PFC sanctioned Rs. 48 Crore for R&U of Hydro Power Project and Rs Crore were disbursed. Cumulatively, an amount of Rs Crore has been sanctioned and Rs. 884 Crore stands disbursed, till 31st March, ULTRA MEGA POWER PROJECTS / SPECIAL PURPOSE VEHICLES PFC has been designated as the Nodal Agency by Ministry of Power, Govt. of India, for development of Ultra Mega Power Projects (UMPPs), with a capacity of about 4,000 MW each. So far, 14 such UMPPs have been identified to be located at Madhya Pradesh (Sasan), Gujarat (Mundra), Chhattisgarh (Akaltara), Karnataka, Maharashtra (Munge), Andhra Pradesh (Krishnapatnam), Jharkhand (Tilaiya), Tamil Nadu (Cheyyur), Orissa (Bedabahal), 2 Additional UMPPs in Orissa and 2nd UMPPs in Andhra Pradesh, Tamil Nadu and Gujarat. The project in Madhya Pradesh, Chhattisgarh, Orissa and Jharkhand are domestic coal based while the other eight (8) are based on imported coal. So far 11 Special Purpose Vehicles (SPVs) have been incorporated (9 by PFC and 2 by PFC Consulting Ltd., a wholly owned subsidiary of PFC) for these UMPPs to undertake all preliminary site investigation activities necessary for conducting the bidding process for these projects. Ministry of Power is the Facilitator for the development of these UMPPs while Central Electricity Authority (CEA) is the technical partner. These SPVs shall be transferred to successful bidder(s) selected through Tariff Based International Competitive Bidding Process for implementation and operation Three SPVs namely Coastal Gujarat Power Ltd. for Mundra UMPP in Gujarat, Sasan Power Ltd. for Sasan UMPP in Madhya Pradesh, Coastal Andhra Power Ltd. for Krishnapatnam UMPP in Andhra Pradesh have been transferred to the successful bidder on dates indicated below: S.No. Name of SPV Successful Bidder Date of Transfer 1 Coastal Gujarat Power Ltd. Tata Power Company Ltd Sasan Power Ltd. Reliance Power Limited Coastal Andhra Power Ltd. Reliance Power Limited

151 "Shri Satnam Singh, Chairman & Managing Director, Power Finance Corporation Ltd., receiving "KPMG-Infrastructure Today Award 2008" under Most Admired Government Enabler-Power category from Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Government of India." LoI for Tilaiya UMPP in Jharkhand was issued to the successful bidder i.e. Reliance Power Ltd. on The process for transfer of SPV i.e. Jharkhand Integrated Power Ltd. is in progress. RfQ for three (3) UMPPs i.e. Tamil Nadu (Cheyyur), Orissa (Bedabahal) and Chhattisgarh (Akaltara), are expected to be issued in FY INDEPENDENT TRANSMISSION PROJECTS (ITPs) / SPECIAL PURPOSE VEHICLES (SPVS) Ministry of Power has initiated similar process i.e. Tariff Based Competitive Bidding Process for development of Transmission system through private sector participation. The objective of this initiative is to develop transmission capacities in India and to bring in the potential investors after developing such projects to a stage having preliminary survey work, identification of route, preparation of survey report, initiation of process of land acquisition, initiation of process of seeking forest clearance, if required and to conduct bidding process etc PFC has incorporated an SPV, East North Interconnections Company Limited (ENICL), for the ITP on for enabling import of NER/NR surplus power by NR. It will be the first transmission line under Tariff Based Competitive Bidding Guidelines in the Country. The project includes 400 kv Quad D/C line from Bongaigaon to Siliguri (approx. 260 Km) and 400 kv Quad D/C line from Purnea to Biharsharif (approx. 235 Km.). RfQ for the project has been issued on Responses have been received from 16 bidders on January 5, Evaluation of responses is in progress and the RfP is expected to be issued before end April MEMORANDUM OF UNDERSTANDING WITH GOVT. OF INDIA PFC has signed an MoU with the Govt. of India for FY , on 31st March, The MoU sets an Excellent level target of Rs.58,100 Crore (other than R-APDRP) and Rs.1,900 Crore (for R-APDRP) against Sanctions, Rs.21,160 Crore (other than R-APDRP) and Rs.1,906 Crore 145

152 (for R-APDRP) against disbursement. Under Excellent category 13.51% is the target fixed for return on Net worth and 99.0% the recovery rate. For the financial year , PFC had surpassed all the Excellent MoU targets for various performance parameters and likely to be accorded Excellent rating HUMAN RESOURCE MANAGEMENT AND TRAINING 22.1 HUMAN RESOURCE MANAGEMENT The Company has put in place effective human resource acquisition and maintenance function, which is benchmarked along best corporate practices designed to meet the organizational needs. The Industrial Relations within the organization has been very cordial and harmonious with the employees committing themselves entirely to the objectives of the organization. There was no man days lost during the year under review WELFARE MEASURE In order to encourage employees to participate in the general governance of the Company, a suggestion scheme is in vogue, which provides employee participation through constructive suggestions on the improvement of the functioning of the Company. They could also drop-in their suggestions in the Suggestion Box. The employees of the Company have access to the Top management officials and can meet them regarding their grievances, if any on a stipulated day in the week. A cafeteria is being run by the Company, where employees get balanced nutritious meals and provides informal platform for interaction with each other in a free environment. The Company believes that only an able effective workforce can meet the highest level of productivity. Keeping this focus, management has also provided state-of-the-art facilities at the workplace by opening a Gymnasium and the employees are encouraged to work out on a regular basis. Company also provides world class medical facilities for employees and their family members. An in-house doctor has also been engaged for consultation by the employees for their minor ailments HUMAN RESOURCE DEVELOPMENT AND TRAINING During the year as on 31st March, 2009, 7 in-house training programs were organized by PFC for its employees. A total of 615 man-days were achieved through in-house programs. In addition, 394 man-days were achieved by sponsoring PFC employees to training programs organized by other training institutes. During the same period, PFC has organized two programs across the country for personnel of various power utilities on subjects such as Towards Faster Project Delivery, : Issue and Concern for Western State Power Utilities, Effective Project Management System: Issue, Strategies & PFC initiatives & Program on Transparency and Efficiency in Public Expenditure DRUM TRAINING Apart from the above, PFC is also functioning as the focal point as well as the Principal Implementation Partner under the Distribution Reforms, Upgrades & Management (DRUM) initiative of Ministry of Power and Government of United States (USAID), which focuses on development of the critical Distribution Sector. The major objectives of the DRUM Training Programme are to (i) enhance the knowledge and experience of a significant number of distribution engineers, managers and technicians through the facilitation of technical and managerial training delivered by professional Indian training institutions; and (ii) support the development and institutional capacity enhancement of selected Indian institutions for sustainable delivery of distribution business management, reform and regular training. Under this initiative, 317 training programmes were organized during the financial year through which 7727 number of personnel was trained from various utilities. Apart from short-term training (5 days & less), the DRUM program also supports longer duration courses through collaborations with leading Institutes such as the Management Development Institute, Gurgoan, for an MBA in Power Distribution Management, and The Energy Research Institute, New Delhi, for an MBA in Infrastructure. To further enhance the reach of its training activities the DRUM program had initiated the distance learning mode. In a collaboration agreement with the Indira Gandhi National Open University, in which PFC is the major sponsor, a Certificate in Power Distribution of six months duration has been initiated for technicians / linesman at remote centers who would otherwise not have access to training for upgradation of their skills CORPORATE SOCIAL RESPONSIBILITY One of the important steps towards Government of India directive to all Public Sector Organizations is to fulfill corporate social responsibility to help NGOs/Charitable organizations in the wake of upliftment of the downtrodden communities who are physically and economically handicapped. PFC has played an important role in this direction by giving a helping hand to the NGOs to help physically disabled, especially the visually challenged to realize their potentials and play their role as equal members of the society. 146

153 As a measure of good and corporate social responsibility, all the available surplus office furniture/materials which became available after shifting of PFC s office from its old rented accommodation at Chanderlok building to its newly owned constructed building at Barakhamba Lane, were donated to NGOs (total value around Rs.20 lakhs). The donation was made to 26 NGOs through its centralized controlled office called CAF (Charities Aid Foundation-who are responsible for looking after the activities of these NGOs). All these NGOs have applauded this act of social responsibility by PFC Management and have commended PFC s efforts in this direction OFFICE AUTOMATION Office automation in its real sense refers to the varied computer machinery and software used to digitally create, collect, store, manipulate and relay office information needed for accomplishing the basic tasks and goals in an organization. In fact, with the operationalization of its official activities from its own building and by well equipping itself with the latest office automation accessories, PFC could be considered to be one of the fully automated offices. Just to mention a few, the provision of video conference facility to board level officials/pa System/Voice Recording System including separate FOREX dealing room/cctv plus more importantly the installation of latest audio visual system with one touch control operation makes conference/meeting proceedings more practical and all these measures enhance its march towards business oriented activities. Further, another milestone with PFC marching ahead in this direction is the online data availability on its LAN about PFC s policies and procedures and online availability of its Loan Documentation formats to its perspective domestic/ foreign clientele, enables PFC to maintain high level of its increaded operational performance year by year. In addition, steps initiated on the introduction of staff/visitors entry/exit through Access Control System, accompanied with its 24x7 CCTV operation to keep a watch on the movement of unknown intruders in the office vicinity are well acknowledged and appreciated by one and all, especially on account of terrorist threat menace. A step further in this direction is the digitization and scanning of PFC s classified documents in order to safeguard its important documents stored in PFC s server. Quick response to the queries of investors of PFC s Public Issue through the Voice Logger System has been well appreciated by its shareholders. In fact, the above advancements go hand in hand with the Management s Business ethics in enhancing PFC s credibility and confidence amongst business clientele and the common people at large PFC CONSULTING LIMITED (PFCCL) 25.1 Background PFC has been providing Consultancy services to Power sector through its Consultancy Services Group (CSG) since October With a reforming power sector, new entities being operationalised, regulatory mechanism coming into operation and Electricity Act 2003 being implemented; leveraging the experience of its CSG Unit, PFC incorporated PFC Consulting Limited (PFCCL) as a wholly owned subsidiary of PFC on 25th March 2008 for providing consultancy services to Power Sector. The company commenced its business on 25th April Range of Services Offered The Services are being offered in the following areas: 1. Reform, Restructuring, Regulatory and related aspects in power sector. 2. Financial Management, Bid Process Management, Resource Mobilization, Accounting Systems etc. 3. Project-Structuring / Planning / Development / specific studies, implementation monitoring, efficiency improvement projects, for both State owned Utilities and IPPs. 4. Development of sustainable Human Resources Plans. 5. Communication and information dissemination. 6. Information Management systems. 7. Legal and Contract Related Services for the Power Sector While PFCCL continues to undertake various assignments, its focus is on assignments relating to:- Procurement of Power Through Case 1 and Case 2 of Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licencees, issued by MoP, GoI Overall advisory services for development of a new Thermal Power Station. Computerization of Accounting Systems for State Utilities. Restructuring/ Implementation of reforms for State Utilities UMPPs & ITPs PFCCL has been assigned the task of development of Ultra Mega Power Projects (UMPPs), an initiative of Ministry of Power (MoP), Govt. of India (GoI), by PFC, which is the Nodal Agency appointed by MoP, GoI. At the time of taking 147

154 "In the presence of Shri Satnam Singh, Chairman & Managing Director, Power Finance Corporation Ltd., Shri M. K. Goel, Director (Institutional Development & Administration), PFC and Chairman, Jharkhand Integrated Power Ltd. handing over the "Letter of Intent" (LoI) for 4000 MW Tilaiya Ultra Mega Power Project to Shri J. P. Chalasani, CEO, Reliance Power Ltd." over the work for development of UMPPs, work was actively in progress for one UMPP i.e. Jharkhand (Tilaiya). With its concerted efforts round the year, as on , work on three (3) more UMPPs viz. Tamil Nadu (Cheyyur), Orissa (Bedabahal) and Chhattisgarh (Akaltara), has been taken up progressively and RfQ for these UMPPs are expected to be issued in FY PFCCL is conducting the bid process for the SPV, East North Interconnections Company Limited (ENICL) and the RfP is expected to be issued before end April Client Base: PFCCL is continuously endeavouring to become a premier consulting organisation in the Power Sector. On the basis of satisfaction in terms of quality of services rendered, clients reposed confidence through awarding of repeat orders. The Client base includes both Public i.e. State/ Central owned Power Sector Utilities (SPSUs/CPSUs) as well as Private entities (IPPs), State Electricity Regulatory Commissions and State Governments. The numbers of states including the profile of clients are given below: Clients Nos. States/ UTs 21 Total No. of Clients 36 State Utilities 15 Public Sector Undertakings 4 State Governments 6 Regulatory Commissions 3 Licensees/ IPPs 8 PFCCL has undertaken significant work mainly in the States of West Bengal, Himachal Pradesh, Rajasthan, Bihar, Jammu and Kashmir, Punjab, Meghalaya, Assam, Andhra Pradesh, Jharkhand, Uttar Pradesh, Haryana, Chhattisgarh and Delhi Financial Performance In the maiden year of operations, PFCCL has logged a net profit of nearly Rs. 10 Crore. 148

155 RURAL ELECTRIFICATION CORPORATION LIMITED (REC) 1. Rural Electrification Corporation Limited (REC) was incorporated as a company under the Companies Act, 1956 in the year 1969 with the main objective of financing rural electrification schemes in the country. The expanded mandate of REC includes financing of all projects including transmission and generation without any restriction of population, geographical location or size. REC is a Public Financial Institution under Section 4A of the Companies Act, REC is also registered as a Non-Banking Financial Company (NBFC) under Section 45 IA of the RBI Act, REC is presently a Schedule A Enterprise with Navratna Status granted by Government of India. 1.1 REC has grown over the years to be a leading financial institution in power sector. Besides attending to its core objectives of financial schemes for extending and improving the rural electricity infrastructure, REC is presently funding large/mega generation projects and transmission and distribution projects, which are critical to the projected addition of installed capacity during CHAPTER the Tenth and Eleventh Plans. 1.2 REC is also the Nodal Agency for implementation of Rajiv Gandhi Grameen Vidyutikaran Yojana a scheme of Rural Electricity Infrastructure and Household Electrification launched by the Government of India in April, 2005, for attainment of the National Common Minimum Programme (NCMP) goal of providing access to electricity to all households in five years. 1.3 REC has three (3) Functional Directors, one Government nominee Director and four (4) Independent Directors. 2. MEMORANDUM OF UNDERSTANDING During the period from to , the Corporation signed the Memorandum of Understanding with Ministry of Power, Government of India, for the financial year and respectively. The performance of the Corporation in terms of Memorandum of Understanding signed with Sh. P. Uma Shankar, CMD, REC presents a cheque for interim dividend payment of Rs Crores for the year to Sh. V.S. Sampath, Secretary MOP on

156 Ministry of Power, Government of India for the financial year has been rated Excellent. This was the 15th year in succession that the Corporation has received Excellent rating since the year when the first MOU was signed with the Government. 3. INITIAL PUBLIC OFFER (IPO) OF SHARES In February 2008 the Company made an Initial Public Offer (IPO) of 15,61,20,000 equity shares of Rs. 10 each through 100% book-building process with price band of Rs.90 to 105 per share. The Issue comprised of a fresh issue of up to 7,80,60,000 equity shares and an Offer for Sale of up to 7,80,60,000 equity shares by the President of India acting through Ministry of Power, Government of India. The Issue got a phenomenal response and it was oversubscribed by about 27 times. The Issue was priced at Rs. 105 per share including a premium of Rs. 95 per share. The fresh equity shares were allotted on 5th March 2008 and the total amount raised by the Company through IPO was Rs crore. The equity shares of the Company were listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) on 12th March SHARE CAPITAL The Authorised Share Capital of REC is Rs.1200 crore. The Issued and Paid up Share capital increased during the year from Rs crore to Rs crore after IPO. In the Post-IPO scenario, the shareholding of the Government of India has reduced from 100% to 81.82% and the balance 18.18% is held by others. 5. MOBILIZATION OF FUNDS (FROM TO ) The amount mobilized from the market during the period from to was Rs.18,894 crore, which includes Rs.2878 crore by way of syndicated loan from commercial banks, Rs.3671 crore by way of capital gains tax exemption bonds, and Rs crore by way of non-priority sector bonds and Rs.1233 crore from commercial papers, and Rs.497 crore by way of Official Development Assistance (ODA) loan from Kreditanstat fur Wiederaufbau (KfW)/ Japan Bank for International Cooperation (JBIC). The domestic debt instruments of REC continued to enjoy AAA rating the highest rating assigned by CRISIL, CARE and FITCH. Mr. P. Uma Shankar, CMD, REC signed the MoU for the year with Mr. Anil Razdan, Secretary, Ministry of Power on

157 6. HIGHLIGHTS OF PERFORMANCE (DURING ) The highlights of performance of REC for the year are given below :- (Rs. in Crore) Particulars (Provisional / unaudited) Loan sanctioned Loan Disbursed Recovery of Dues Resource Mobilization Profit before Tax Profit after Tax Net worth 6375 Dividend (Interim dividend for paid during the year) Business per employee PROGRESS MADE DURING THE PERIOD TO Sanctions (Rs. in crore) Sl. No. Particulars Achievement during the period to Transmission & Distribution {including projects under International Cooperation and Development (IC & D)} Generation {including projects under Decentralized Distribution Generation (DDG)} Short Term Loan Total Disbursements (Excluding RGGVY) (Rs. in crore) Sl. No. Particulars Achievement during the period to Transmission & Distribution {including projects under International Cooperation and Development (IC &D)} Generation {including projects under Decentralized Distribution Generation (DDG)} Short Term Loan Total Performance Highlights (from to ) Sl. No. Particulars Achievement during the period to (provisional on estimated basis) 1 Total Income (Rs. in crore) Gross Margin (Rs. in crore)

158 3 Net worth (Rs. in crore) (As on the last day of the period) Return on Net Worth 22.18% 5 Overhead to Total Income 2.57% 6. PBDIT / Total Employee Earning per share (EPS) SUBSIDIARY COMPANIES 8.1 REC Power Distribution Company Ltd. (RECPDCL) REC Power Distribution Company Ltd. (RECPDCL), which was established on 12th July, 2007, has been doing third party inspection of RGGVY, FRP works etc. of various state power utilities and providing consultancy in the field of power distribution. It has earned a net profit of Rs.1.78 crores during the year During the period from to , RECPDCL has signed Agreements with the various State Power Utilities for Third Party Inspection and Monitoring of RGGVY and FRP works of a cumulative project cost of Rs crores. On completion of the above inspection & monitoring work, it is expected that RECPDCL would get a revenue of Rs crores (approx.). During this period, RECPDCL has completed monitoring of RGGVY works of 6565 villages in 5 States. During the above period, RECPDCL has entered into agreement with M/s. HCL for implementing projects on IT in Power Sector. 8.2 REC Transmission Projects Company Ltd. (REC TPCL) REC TPCL was incorporated on January 8, 2007 as a Public Limited Company. It received its Commencement of Business Certificate on February 5, The main object of REC TPCL is to promote, organize and carry on the business of consultancy services and/ or Project implementation in any field of activity relating to transmission & distribution of electricity in India or abroad. REC TPCL has already taken up the task of selection of developer for the two transmission projects entrusted to REC. Technical consultants and Bid Process Consultants to assist REC TPCL in the process have already been appointed. Subsequently, under REC Transmission Projects Company Limited, two project specific SPVs namely (i) North Karanpura Transmission Company Limited, and (ii) Talcher II Transmission Company Limited have also been formed subsequently. These SPVs would be merged with the Transmission Service provider (TSP) of the Transmission system after the developer is granted a license by the CERC. REC TPCL has successfully completed Bid Opening process for the above two projects on 11/12/08 & 12/12/08. In response to Request for Qualification (RFQ) for North Karanpura Transmission Project, total 13 firms have submitted their response and in case of Request for Qualification (RFQ) for Talcher-II Transmission Project, total 15 firms have responded and evaluation of RFQ is under progress. 9. BUSINESS DEVELOPMENT REC hosted a delegation from Rural Energy Agency (REA) Govt. of Tanzania on 19th March, The delegation was on a study tour to India and Bangladesh to exchange and share the professional expertise in the field of Rural Electrification. Due to RGGVY programme of Ministry of Power and REC being its nodal implementing agency, REC is emerging as a role model amongst the International Agencies seeking to promote and facilitate improved access to modern energy services in their rural areas. They also visited a RGGVY project having rural infrastructure. 10. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY) SCHEME FOR RURAL ELECTRICITY INFRASTRUCTURE AND HOUSEHOLD ELECTRIFICATION. Government of India, in April 2005, launched the scheme Rajiv Gandhi Grameen Vidyutikaran Yojana Scheme of Rural Electricity Infrastructure and Household Electrification for the attainment of the National Common Minimum Programme (NCMP) goal of providing access to electricity to all households in five years. REC is the nodal agency for implementation of the scheme in entire country. Initial approval was for implementation of Phase I of the scheme for capital subsidy of Rs.5000 crore during the 10th Plan period. The scheme was subjected to evaluation towards the end of 10th Plan with a view on modification required for implementation during 11th Plan. Accordingly, approval of continuation of the scheme in XI Plan has been issued by Ministry of Power vide OM No. 44/37/07-D(RE) dated 6th February 2008 for capital subsidy of Rs crore during 11th Plan period. 152

159 Salient features Ninety per cent capital subsidy is provided towards overall cost of the projects under the scheme. The states to finalize their Rural Electrification Plans in consultation with Ministry of Power and notify the same within six months. For projects to be eligible for capital subsidy under the scheme, prior commitment of the States be obtained before sanction of projects under the scheme for: i) Guarantee by State Government for a minimum daily supply of 6-8 hours of electricity in the RGGVY network; ii) Deployment of franchisees for the management of rural distribution. The management of rural distribution would be through franchisees who could be Non-Governmental Organizations (NGOs), Users Association, Panchayat Institutions, Cooperatives or individual entrepreneurs. The franchisee should be preferably input based to reduce AT&C losses so as to make the system revenue sustainable. The projects under the scheme are subject to threetier Quality Monitoring Mechanism. At first tier, implementing agency will engage third party inspection agency to inspect approx. 50% villages on random sample and pre-despatch inspections of major materials. Whereas at Second Tier, Rural Electrification Corporation will inspect 10% villages on random sample basis. At third tier, Independent Evaluators (Individuals /Agency) will be engaged by the Ministry of Power for evaluation to cover evaluation of 1% villages. Decentralized distribution-cum-generation from conventional or renewable or non-conventional sources such as biomass, bio fuel, bio gas, mini hydro, geo thermal and solar etc. for villages where grid connectivity is either not feasible or not cost effective The details of target achievement during the period from to are as mentioned below:- Sl.No. Particulars Target as per MoU Targets achieved for the year till RGGVY 1 Electrification works in un-electrified villages (Nos.) (a) North East States (b) Other than NE States (c ) Total Release of free electricity connections to BPL households (Nos. in Lakh) (a) North East States (b) Other than NE States (c ) Total (Nos. in Lakh) Progress of works during the year It has been reported that works have been completed for villages (including un-electrified and electrified villages) during up to Connections to Lakh rural households including Lakh BPL households have been released during up to Franchisee development Fourteen states in the country have already taken action in development of franchises for distribution of power in rural areas. So far, franchisees are operational/contracted covering villages both in RGGVY and other areas in the states of West 153 Bengal, Uttaranchal, Uttar Pradesh, Karnataka, Rajasthan, Nagaland, Bihar, Assam, Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Orissa, Maharashtra, Punjab and Madhya Pradesh Progress of works during the period from to It has been reported that works have been completed for villages (including un-electrified and electrified villages) during the period from to Connections to Lakh rural households including Lakh BPL households have been released during the period from to

160 10.5 Cumulative performance : Village Electrification Infrastructure a. The cumulative performance under the RGGVY from the date of launching the programme are as mentioned below: Plan Number of Projects Number of Villages Sanctioned NIT Issued Turnkey Contracts Status of Sanctioned Project Cost for Awarded Balance Xth Plan XIth Plan 235 Projects 327 Projects villages (66194* un-electrified and electrified villages) villages (49704 un-electrified and electrified villages) * taking into account villages reduced by Uttar Pradesh, West Bengal and Rajasthan. b. Cumulatively, works in villages (59882 unelectrified and electrified villages) have been completed under RGGVY up to Cumulatively, connections to Lakh rural households including Lakh BPL households have been released under the scheme up to INTERNATIONAL COOPERATION AND DEVELOP- MENT (IC & D) Japan Bank for International Cooperation (JBIC) - 2nd Line of Credit REC has entered into a second Loan agreement with JBIC on 10th March 2008 for official Development Assistance (ODA) of billion Yen for implementation of Transmission System Project by Haryana Rs crore (including revised sanctioned cost of Maharashtra) Rs crore Projects 319 Projects 235 Projects 280 Projects Vidyut Prasaran Nigam Ltd (HVPN). The objective of the project is to achieve stability in power supply and to meet the fast growing load demand by strengthening intra-state transmission systems in the State of Haryana, thereby contributing to local economic development and improvement of living standard of local residents in the State. The loan has been effectuated on 12th September 2008 and drawl of funds has commenced under the loan Indo German Bilateral Cooperation (KfW) - 2nd Line of Credit REC has entered into a Second Loan Agreement with KfW on for Official Development Assistance (ODA) of EUR 70 million & Financing Agreement for financial Contribution of EUR 500,000 under Energy - 9 projects are ready for award.

161 Efficiency Programme-II for implementation of Energy Efficiency and System improvement Project of Uttar Haryana Bijli Vitran Nigam Ltd (UHBVN), Haryana. The objective of the project is to promote energy efficiency by reduction in distribution losses, reduction in failures in electricity distribution and to provide higher quality of services to predominantly agricultural consumers in UHBVN s distribution network Asian Development Bank (ADB) ADB has approved a line of credit amounting to US $ 225 million to REC on to finance transmission and distribution networks in rural sector. Further negotiations with ADB in availing the loan are under progress Clean Development Mechanism (CDM) The 4 nos of Project Design Documents (PDDs) on HVDS Project of APSPDCL financed by REC under REC-KfW Energy Efficiency Programme-I have received Host Country Approval from MoEF in January 2009 for availing carbon credits under CDM and this approval is first of its kind in the Indian Power Distribution Sector. 12. DECENTRALIZED DISTRIBUTED GENERATION (DDG) RGGVY provides for DDG from conventional or renewable (non-conventional) sources such as biomass, bio gas, mini hydro, and solar etc.for villages where grid connectivity is either not feasible or not cost effective. DDG systems are small power generation units with local distribution system. Ninety per cent capital subsidy would be provided under RGGVY towards overall cost of the DDG projects under the scheme, excluding the amount of state or local taxes, which will be borne by the concerned State/ State Utility. 10% of the project cost would be contributed by states through own resources/loan from financial institution. A provision of Rs 540 Crore has been kept as subsidy for DDG projects under XIth Plan. Guidelines for village electrification through DDG under RGGVY in the XIth plan have been issued by Ministry of Power vide Order No. 44/1/2007-RE dated DDG projects shall be executed in line with the above guidelines. So far REC has financed various Renewable Projects as per details given below as on : Projects under implementation and Projects Commissioned Sl.No. Description Projects Projects under TOTAL Commissioned Implementation (i) Value of Loan sanctioned (Rs. Crore) (ii) Disbursement made so far (Rs Crore) (iii) Value of Projects Sanctioned (Rs Crore) (iv) MW of Projects INTERNAL AUDIT The company has a separate Internal Audit Division which verifies compliance to the policies and procedures framed by the management. During , the Internal Audit Division covered audit of all the Divisions of Corporate Office (21 in nos.) and 18 Project Offices / Zonal Offices as per Annual Internal Audit Programme. The Division helps in improving Systems as well as accuracy and efficiency of transactions and operations. The significant findings of the Internal Audit are submitted to the Audit Committee of the Board of Directors for information and further follow up for compliance of the audit observations. Periodical reviews are also carried out to ensure follow up on the audit observations. 14. INFORMATION TECHNOLOGY 14.1 Progress made during the current year upto 31st March, 2009 REC has initiated implementation of an integrated Oracle based ERP system covering all major business functions. This is being implemented by M/s.Tata Consultancy Services (TCS) under consultancy of Management Development Institute (MDI), Gurgaon. During the period, phases like AS- IS process study, TO-BE Module Testing, Integration Testing, Gap-Fit analysis & Functional Design and Customization User Acceptance Testing (UAT) have been completed. Partial GO-LIVE of some of the modules i.e. GL (General Leger), FA (Fixed Asserts), Accounts Payable and receivable, Treasury and Cash 155

162 Management, Purchase and Inventory have been successfully completed during this financial year. The Live of operation of the ERP software across the organization is scheduled by 15th April, As part of implementation of IT infrastructure for ERP operation, Establishing ERP Data Centre and MPLS- VPN based Wide Area Network (WAN) for interconnecting all offices of REC has been completed. The Local Area Network (LAN) in the Corporation has been consolidated. The website of the Corporation has been made bilingual. Corporate Intranet has been revamped, developed in-house, with more attractive and dynamic features, and launched during July, TRAINING ACTIVITIES AT CENTRAL INSTITUTE FOR RURAL ELECTRIFICATION (CIRE) HYDERABAD The activities of the CIRE for the period from to are as under : A. The following programmes were conducted during to : Sl. No. Programme No. of Programmes No. of Participants 1. Regular Progrmames DRUM Programmes Workshops International Programmes Programmes in collaboration with Institute of Public Enterprises 2 25 Total B. During the year , CIRE has conducted 98 programmes and trained 2766 participants. This is the best achievement since inception of CIRE in The following categories of programmes were conducted during : Sl. No. Programme No. of Programmes No. of Participants 1 Programmes on TOT: Rural Electricity Distribution Franchising (in association with TERI) 2. DRUM Programmes other than Franchising Programmes 3. Others- Pilot Training For C&D 2 79 Employees and Franchisees 4. In-house Programmes Regular /Open Programmes International Programmes Programmes in Collaboration with IPE Sponsored Programmes Total

163 C. CIRE/REC has been made the Nodal Agency for implementing the "National Franchisee Training Programme" by the Ministry of Power, GOI. The Distribution Management in RGGVY villages are to be franchised to suitable areas and it is a mandatory requirement. The scheme is implemented throughout the country by REC. CIRE, being the Training Institute of REC, is identified as Nodal Agency for implementing the "National Franchisee Training Programme" throughout India and the training activity will continue upto CIRE/REC has also been identified by the Ministry of Power, GOI, as Nodal Agency for implementing the "National Training Programme for C&D Employees". The supporting staff in technical, non-technical areas working in distribution sector, who are the first interface with the consumers will be provided training and skill development to effectively deliver their responsibilities and improve the customer satisfaction, the C&D employees training programmes are proposed. Under this scheme, about 75,000 C&D employees in the country will be trained during the period of Eleventh Five Year Plan. D. During the year , as per the guidelines of MOP, emphasis has been given to conduct more number of programmes on "Training of Trainers: Rural Electricity Distribution Franchising" under RGGVY in association with TERI. The Ministry of Power has targeted CIRE of REC to organise 25 programmes on this topic. However, CIRE has conducted the double the number of targeted programmes, which is a remarkable achievement. CIRE is one of the best performing training institutions and trained maximum number of participants during the second half of the year among the 13 training institutions conducting DRUM training programmes all over the country, as per the MIS of DRUM Project Secretariat. During the year , CIRE has conducted seven programmes under the sponsorship of kfw, Germany on the topics "Energy Accounting and Auditing in Power Sector - Strategies and Techniques" and "High Voltage Distribution System" (HVDS). In addition, five customer specific / tailor-made programmes on "Pilferage of Electricity - Theft & Legal Remedies" for the Vigilance Executives, including Police Officers, of power utilities in Karnataka State i.e. KPTCL, BESCOM, HESCOM, GESCOM and CESCOM were also conducted. CIRE has also organised a training programme on "Monitoring of RGGVY Projects" to a batch of 25 executives of NESCL of NTPC. E. CIRE has been identified as Nodal Agency for coordinating the Meeting of Inspection by the Parliament Second Sub-Committee on Official Language at Hyderabad. The Inspection of 6 Central Government institutions i.e. Indian Institute of Chemical Technology, National Consumer Cooperative Federation, Central Ground Water Board, Coconut Development Board, Central Research Institute for Dry Land Agriculture and Central Institute for Rural Electrification (CIRE) were taken up by the Sub-Committee during Jan The meeting was successfully conducted by CIRE and we have also received an appreciation letter from the Chairman of the Parliamentary Second Sub-Committee on Official Language. 16. GENDER ISSUES INFORMATION RELATING TO GENDER BUDGETING - NIL 17. APPRAISAL PROCESS FOR SANCTION OF LOANS 17.1 Generation Power Projects REC is providing loan assistance to SEBs/State Power Utilities/Private Sector for setting up of generation projects like hydro, thermal (coal and gas based), R&M, non-conventional, etc. without any limit on the size and geographical location of the project in the country. For Generation Projects, the loan applications, in prescribed formats for Govt./Public sector/seb and private IPPs are, being submitted to the Corporate Office which includes the checklist of essential documents to be submitted for appraisal and sanction of loan assistance. The following are evaluated for appraisal of the project :- 1. Needs Assessment 2. Assessment of location, accessibility & evacuation scheme 3. Assessment of technology 4. Assessment of inputs and infrastructure required 5. Assessment of linkages secured 6. Analysis of contracts PPA, FSA, FTA, EPC,O&M etc 7. Cost and Tariff competitiveness Comparison with existing database and similar projects 8. Clearances 157

164 9. Procurement Procedure (iv) System Improvement (P:SI(Transmission)) category 10. Implementation Plan 11. Proposed Financing Plan 12. Sensitivity Analysis 13. Availability of the Exposure of REC 14. Strengths and Weaknesses of the Project 15. Risk factors and mitigation The following are evaluated for appraisal of the entity / borrower : - 1. State Sector Project: 1. Status of past loans/ default to REC if any 2. Financial Performance of the Utility 3. Maximum permissible borrowing 4. Maximum Permissible Loan 5. Security offered 2. Private Sector Project: 1. Business Analysis Market Analysis Industry Analysis 2. Financial Analysis Past Financial Position Future Financial Position Financial Flexibility 3. Management Analysis Management Evaluation Project Execution Capabilities 4. Security offered 17.2 Transmission & Distribution Projects Appraisal Policy for T&D Schemes 1. Operational guidelines for various categories of schemes under T&D The T&D Schemes are financed under the following broad categories: (v) System Improvement (Bulk Loan for Meters, Transformers) category Operational Guidelines for each category of schemes as approved by the competent authority have been issued, covering various aspects required for formulation and appraisal of schemes like objectives, scope of works, area to be covered, format of DPR, cost data, entity appraisal, extent of exposure, project implementation, project financing, deviation, extensions, disbursal of loan, financial viability etc. These guidelines are revised as and when required to bring them in line with the structural, organizational and operational changes which take place in the power sector. These guidelines are followed for technical and financial appraisal of the T&D schemes. 2. Entity Appraisal For entity or borrower s appraisal, the latest ratings including maximum permissible exposure as specified by the entity appraisal division of REC is being followed. 3. Extent of Exposure For calculating the exposure for each utility, the norms as specified in the prudential norms issued by the Finance Division of REC is followed. 4. Rate of Interest Interest Rates and other related loan policies for various categories of schemes financed by REC are issued in the form of interest rate or loan policy circular periodically issued by the CS Division based on the approval of the BOD. 5. Repayment period The present repayment period approved by the BOD for T&D schemes is 13 years including 3 years moratorium except for Bulk loan schemes for which it is 7 years including 2 years moratorium. This is also issued by CS Division based on BOD approval. 6. Security There are various security options approved by BOD for T&D schemes. These include Government Guarantee, Bank Guarantee, hypothecation of existing assets, hypothecation of future assets or a combination of any of the above. The options as approved by BOD are issued in the form of a circular by the CS Division. 7. Monitoring Mechanism (i) (ii) (iii) Intensive Electrification (P:IE) category Pumpset energisation (SPA:PE) category System Improvement (P:SI(Distribution)) category 158 A detailed monitoring guidelines for T&D schemes covering the different types of monitoring to be done at various stages of the project cycle have been specified vide Monitoring guidelines issued.

165 17.3 Short Term Loans Appraisal Policy of Short Term Loans The Competent Authority has approved the following appraisal policy of the Short Term Loans :- 1. Eligibility : Power Utilities and State Governments not in default to REC, shall only be eligible for grant of Short Term Loans. Default means that there should not be any over dues of interest and/or principal to the Corporation, except where overdue amount is on account of some issue remaining unresolved, as decided by the Competent Authority. 2. Purpose : To provide finance to the borrowers to meet their working capital requirement for different purposes, such as :- Purchase of fuel for power plant System and network maintenance including transformers repairs Purchase of power Purchase of material and minor equipment Any other requirement of Working Capital 3. Entity Appraisal : As stated above, Short Term Loans are extended only to Power Utilities and State Governments. Presently, rating of these entities, regarding exposure & category, as carried out by Power Finance Corporation, on quarterly basis, are being adopted by REC, till the same is done in-house. While appraising a proposal for Short Term Loan, the category awarded to a particular Entity is to be taken into account. The applicable rate of interest and the amount of exposure that can be taken on a particular Entity is also governed by the Rating Exercise. For private sector borrowers, whose ratings are not considered by the Corporation on routine basis, separate Entity Appraisal would be got carried out from the Project Appraisal Cell, at the time of considering their request for Short Term Loans. The Corporation would exercise proper due diligence while sanctioning STL to private utilities. 4. Rate of Interest : 5. Repayment Period : The Short Term Loans shall have a repayment period of upto one year. However, the borrower shall have the option for roll over of the loan for another matching period only once. Acceptance of such option for roll over of loan would however rest with the Corporation. 6. Mode of Repayment : The borrower shall have the option to pay the principal in lump-sum (bullet) at the end of the tenure or in equal monthly instalments repayable within the period of the loan. The interest shall be payable monthly. In case, the loan is repaid in instalments, the interest shall be payable on reducing balance basis. The monthly date of payment can be decided by the borrower. 7. Security : The borrower may provide any of the following securities covering the full loan amount. Hypothecation of material/assets Or State Govt. Guarantee Or Bank Guarantee Or Corporate Guarantee, as acceptable to REC Or A mix of the above, as acceptable to REC. In addition, suitable escrow cover acceptable to the Corporation shall also be provided unless the borrower opts to choose the option of providing Bank Guarantee covering the full loan amount. 8. Pre-payment of Loan : Normally, no pre-payment of the Short Term Loan would be allowed. However, the Corporation may consider pre-payment of the loan, subject to the payment of premium as per the policy of REC as may be applicable from time to time 9. Loan Ceiling The rate of interest shall be that as prevailing on the date of disbursement. In respect of roll over, the interest rate applicable on the date of roll over shall be applied. 159 STL to Power Utilities to meet their working capital requirement should be linked to the overall limit of working capital considered by the Regulatory Commission, where applicable. Sanction of STL shall

166 be considered subject to due diligence and after deduction of amount already taken as working capital from other FIs/Banks against the overall limit. REC may, however, exceed such limit by 25% on case to case basis. This shall, however, be within the maximum exposure permissible for the borrower as per Prudential Norms of REC. 10. Other Conditions The prescribed procedure as approved by Director (Finance) will be followed for loan documentation. 11. Monitoring Mechanism The borrower shall furnish to the Corporation a statement of proper utilization of Short Term Loan. In addition, the borrower shall comply with any other condition that may be stipulated by REC to ensure and get satisfied that the loan amount granted is utilized only for the purpose for which it was intended. 12. Extent of Assistance Upto 100% of the requirement of funds for the eligible items. At the time of making request to REC for release of tranche, the borrower shall indicate the purpose for which the amount is proposed to be used. The borrower shall furnish Utilisation Certificate for the amount released within 60 days from the date of disbursement. 13. Clarifications Any clarifications required to the above policy shall be decided by the CMD. Further, CMD may make any minor deviation in terms and conditions of the said scheme and prescribe such documents as may be required. 160

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168 CHAPTER NORTH EASTERN ELECTRIC POWER CORPORATION LTD. North Eastern Electric Power Corporation Ltd. (NEEPCO) was constituted in 1976 under the Indian Companies Act, 1956 with the objective of developing the power potential of the North Eastern Region of the country through planned development of power generation projects, which in turn would effectively promote the development of the North Eastern Region. Since then NEEPCO has grown into one of the pioneer Public Sector Undertaking under the Ministry of Power, Govt. of India, with an authorized share capital of Rs. 3,500 Crores and having an installed capacity of 1,130 MW (755 MW hydro & 375 MW thermal), which meets more than 60% of the energy requirements of the N.E. Region. The main objectives of the Corporation are to add to the power generating capacity in the North Eastern Region by ensuring optimum utilization of commissioned generation projects, to generate adequate internal resources ensuring justifiable return on investment, to continue sustained efforts to obtain the receivables from State Electricity Boards/Departments, to execute and commission power projects, both hydro and thermal, within prescribed time frames, and to undertake long term feasibility studies for optimum development of hydro power resources of the North Eastern Region. 1. POWER PLANT UNDER OPERATION: The following completed Projects are under Operation: Sl. No. Name of the Plant State Installed Capacity (MW) HYDRO 1. Ranganadi H.E. Power Plant Arunachal Pradesh Kopili H.E. Power Plant Assam Doyang H.E. Power Plant Nagaland 75 THERMAL Sub Total Assam Gas Based Power Plant Assam Agartala Gas Turbine Power Plant Tripura GENERATION FROM POWER PLANT: Sub Total 375 T O T A L 1130 Sl. No. Name of the Project MOU Target Actual Generation during during Ranganadi H.E. Power Plant Kopili H.E. Power Plant Doyang H.E. Power Plant Sub Total Assam Gas Based Power Plant Agartala Gas Turbine Power Plant Sub Total T O T A L

169 Capacity index for Hydro Plants for the year is 87.36% against yearly target of 85% and availability for Thermal Plants is 79.91% against yearly target of 80% for the same period. FINANCIAL STATUS: Particulars RE Achieved upto 31st Mar 2009 (Provisional) Gross Sales (Rs. in Crores). PROJECTS UNDER CONSTRUCTION: Kameng H.E. Project (600 MW), Arunachal Pradesh: The Kameng H.E. Project is located in West Kameng district of Arunachal Pradesh. The Project is accessed through Tezpur town in the state of Assam. The objective of the project is to generate electricity by diverting the water of River Bichom, with augmentation of water from river Tenga during lean period, to the power house situated on the right bank of River Kameng near Kimi village having installed capacity of 600 MW. The CCEA clearance of Kameng HEP was accorded on at an estimated cost of Rs Crs. including IDC of Rs Crs. at March 2004 PL. The project was originally approved for completion in 5 years from the date of CCEA clearance with commissioning schedule in Nov which has been revised with commissioning of 1st Unit as Dec All major works are in progress. So far 5.95 KM tunnelling has been completed out of KM. The proposed Revised Cost Estimate of the Project at Sep 2008 PL has been worked out as Rs Crs. (including IDC of Rs Crs.). The progress has suffered due to poor geology, lack of stable construction power and roads and major flash floods. The project is taken up as Central Sector Scheme with debt: equity ratio of 70:30 of the approved project cost. The equity portion is being provided by the Govt. of India as GBS and rest as loan from M/s PFC. Surge Shaft work in Progress (Kameng HEP) Tuirial H.E. Project (60 MW), Mizoram: The project activities against Tuirial H.E. Project had been totally stopped w.e.f due to illegal demand of crop compensation on forest land and huge time & cost overrun on account of design changes. The matter was referred to PIB on for its kind appraisal and approval on continuation or otherwise of the project. However, in a meeting to review the status of the project held on , it was inter-alia decided to move a revised PIB Note 163

170 based on the hard cost of the project, as vetted by CEA vide their letter dated of Rs crs after duly considering the following : 1) Continuation of JBIC Loan 2) Subordinate debt of the order of Rs.180 cr. to Rs.200 cr. at nominal rate of interest 3) Govt. of Mizoram to resolve and re-assess the claims pertaining to Crop compensation in riverine reserve forest and take responsibility for maintaining law & order. 4) The civil contractor M/s. Patel Engineering Ltd. to withdraw their compensation claims and a letter to that effect to be collected by NEEPCO. Pare H.E. Project (110 MW), Arunachal Pradesh: The MOA was signed with the Government of Arunachal Pradesh on 21st September 2006 for execution of this project. The Foundation Stone of the Project was laid by Hon ble Prime Minister, Govt. of India on The CCEA clearance for implementation of the Project (110 MW) was accorded on 4th December 2008 at an approved estimated cost of Rs crores, IDC and Finance Charges of Rs crores at June 2007 Price Level. The Project is scheduled to be commissioned in 44 months. The power from the project would be utilized within the North Eastern Region itself, using the existing 132 kv transmission system of Ranganadi Hydro Electric Project to meet the needs of Arunachal Pradesh, Assam and other North Eastern Region States. Tenders for award of works/ contracts of Design and Review Consultancy works, Package- I (Civil and Hydro-Mechanical works) and Package-II (Electro- Mechanical works) have been completed. However, due to high price quoted by the bidders, as compared to the provisions of the sanctioned Cost Estimate of the Project, the bids for both the Packages have been cancelled and initiation of new Bids through 4(four) Packages viz. Civil Works, HM Works, EM Works & Switch Yard and Transformer works have been taken up. Tender for Package-I (civil works) have already been floated on POWER PROJECTS UNDER PIPELINE (HYDRO): Tipaimukh H.E. (Multipurpose) Project (1500 MW), Manipur: Located in the Churachandpur district of Manipur, the estimated firm power of the project is MW and the annual design energy is 3,806 MU at 90% dependable year. In addition, the project would provide flood moderation in Barak Valley of Assam as secondary benefit. PIB meetings were held on and The Revised Cost estimate has been cleared by CEA for a total cost of Rs.5, Crs including IDC of Rs Crs. at November 2005 Price Level considering rate of interest on loan as 9.75%. The above cost does not include the cost components of External Security for Rs.246 Crs., Flood Moderation for Rs Crs. and Diversion of National Highway for Rs Crs, which have been agreed, In Principle, to be borne by the respective Ministries of the Govt. of India. The project is scheduled to be commissioned within 87 months from the date of CCEA clearance. Notice Inviting Bids were floated on with submission of Bids are now scheduled for opening on The MoE&F, GOI accorded Environmental Clearance to the project on Upon obtaining forest clearance from MOE&F, GOI, the project will be placed before CCEA for clearance. The State Govt. of Manipur had suggested the option of setting up a Special Purpose Vehicle, in which the State Govt. of Manipur, NHPC and NEEPCO may participate, for implementation of the project. Accordingly, a meeting was taken by Secretary (Power) on in which the perspective of implementation of the project as a joint venture / special purpose vehicle (SPV) was also explored. Satluj Jal Vidyut Nigal Ltd. (SJVNL) have intimated their willingness to participate in the SPV by way of equity contribution to the extent of 26%. NHPC have declined to participate in the proposed SPV. Whereas the State Govt. of Manipur have indicated their desire to contribute 5% of equity. Mawphu H.E. Project (90 MW), Meghalaya: The Project is a run of the river scheme and located in the East Khasi Hills District of Meghalaya. The project with a proposed installed capacity of 90 MW (2 X 45 MW) would afford an annual energy generation of MU in 90% dependable year on 95% plant availability basis. The cost of the project has been assessed at Rs Crs. at March, 2007 Price Level including IDC of Rs Crs. The Project is scheduled to be commissioned within 4½ years from the date of CCEA clearance. Signing of MoA with Govt. of Meghalaya could not be concluded on the issue of non-payment of upfront premium. Ranganadi Stage-II H.E. Project (130 MW), Arunachal Pradesh: The DPR of the project was submitted to CEA on for Techno Economic Clearance (TEC). However, the same was returned by CEA due to high tariff. As advised by the CEA, the project parameters including Cost Estimate of the project are under review by NEEPCO. Signing of MoA with Govt. of Meghalaya could not be concluded on the issue of non-payment of upfront premium. POWER PROJECTS UNDER PIPELINE (THERMAL): Tripura Gas Based Power Project ( MW), Tripura: All statutory clearance including MoE&F has been obtained. The PPA with the Tripura State Electricity Corporation Limited (TSECL) has been signed on

171 The Gas supply agreement (GSA) with M/s ONGC has been signed on for supplying 0.5 MMSCUMD gas for the project. The PIB has recommended the project for CCEA on It is proposed for commissioning during 11th Plan subject to CCEA clearance within September Notice Inviting ICB for the EPC contract to execute the project on full turn-key basis was opened on and presently under evaluation. The project shall be completed within 30 (Thirty) months from the date of investment decision. 500 MW Garo Hills Thermal Power Project, Meghalaya: Signing of MoA with Govt. of Meghalaya could not be concluded on the issue of non-payment of upfront premium 240 MW West Khasi Hills Thermal Power Project, Meghalaya: Signing of MoA with Govt. of Meghalaya could not be concluded on the issue of non-payment of upfront premium 250 MW Margherita Thermal Power Project, Assam: The project is being implemented as a Joint Venture between NEEPCO & Assam Power Generation Corporation Ltd. The draft Joint Venture Agreement with the provision to have 100% of the generated power from the project to the State of Assam was submitted to this Ministry. NEEPCO was suggested by Ministry of Power to revise the draft Joint Venture Agreement in consonance with the Central Formula for power allocation. NEEPCO have taken up the matter with Govt. of Assam. A response from the Assam Govt. is awaited. 165

172 CHAPTER SATLUJ JAL VIDYUT NIGAM LIMITED 1.0 About SJVNL The Satluj Jal Vidyut Nigam Limited SJVN (formerly Nathpa Jhakri Power Corporation Limited - NJPC ) was incorporated on May 24, 1988 as a joint venture of the Government of India ( GOI ) and the Government of Himachal Pradesh (GOHP) to plan, investigate, organize, execute, operate and maintain Hydro-electric power projects in Satluj basin in the state of Himachal Pradesh and at any other place. The present authorized share capital of SJVN is Rs 4500 crores. The Nathpa Jhakri Hydro Power Station NJHPS ( 1500 MW ) was the first project undertaken by SJVN for execution and its all six units of 250 MW each was commissioned and are under commercial operation since May18,2004. Since its commissioning NJHEPS has generated total of MUs (Gross Energy Generation) upto March 31,2009 and SJVN has paid a total dividend of Rs Crores as per the details given under. Sr. No. Dividend Paid (Year wise) GOI (Rs. in crores) GOHP (Rs. in crores) Total (Rs. in crores) (Interim ) TOTAL Adit to HRT Rampur HE Project 166

173 2.0 Progress Made During : The details of the Progress made during the year , in respect of Energy Generation and Capacity Addition by SJVN, are as under: Description Actual Achievement up to Total Target during March 31, 2009 for the FY Gross Energy Generation During MU 6600 MU Capacity Addition NIL NIL 3.0 Financial Parameters of SJVN The financial position of SJVNL, for the last 4 years, is as under: (Rs. in Crores) S.No. Description A. INCOME DETAILS I Sales II Other income III Claim from Insurance Co IV Total income V Profit before Depreciation, Interest & Finance Charges, and Taxation. VI Profit before tax VII Profit after tax VIII Dividend IX Tax on Dividend X Reserves and Surplus B SOURCES OF FUND I Share Capital II Reserve & Surplus III Net Worth IV Borrowings TOTAL C APPLICATION OF FUNDS I Gross fixed Assets II Less Depreciation (-) III Net Block IV Total Fixed assets (including capital work in progress, investments etc.) V Net Current assets VI Misc. Expenditure Total Project Under Construction: Rampur Hydro Electric Project RHEP ( 412 MW) ( located on river Satluj in Shimla district of Himachal Pradesh) SJVN, has already taken up the execution of the proposed 412 MW Rampur HE Project (RHEP). The proposed RHEP is a downstream development of the existing 1500 MW NJHPS and shall use the de-silted waters of the NJHPS 167

174 under operation. The Salient Features of 412 MW RHEP, in brief, are as under : Head Race Tunnel km long, m dia circular concrete lined Power House - Surface type 138 m L x m W x 48 m H Capacity - 6 x MW each = 412 MW Energy Generation Million Units during a 90 % dependable year. SJVN, through its intense and concerted efforts, has secured all statutory clearances including Environmental, Forest, PIB and finally CCEA clearance on January 11, 2007, for its 412 MW Rampur Hydro Electric Project. Subsequent, to CCEA clearance SJVN has awarded major civil works on February 01, 2007 and Electro- Mechanical works on September 16,2008. Construction works and Electro- Mechanical works of Rampur HE Project are in full swing and all the six units of the project are scheduled to commission by March Total cost of project at March 2006 price level is crores. 5.0 Corporate Plan SJVN has drawn a comprehensive 10 year plan to achieve a target of approximately 5251 MW capacity addition by and emerge as a major contributor in Hydel Power generation. SJVN has already taken up the execution and subsequent operation and maintenance, of the following projects in the states of Himachal Pradesh and Uttarakhand in India and various projects in Nepal and Bhutan. 6.0 Projects Under Investigation and Implementation: SJVN has already taken up the following projects for Implementation after Survey and Investigation works in the states of Himachal Pradesh and Uttarakhand in India and various projects in Nepal and Bhutan. (1) Luhri HE Project ( 775 MW ) located on river Satluj in Shimla district of Himachal Pradesh. (2) Khab HE Project ( 1020 MW )* located on river Satluj in Kinnaur district of Himachal Pradesh. (3) Dhaulasidh HE Project - 40 MW, on river Beas, located in Hamirpur district of Himachal Pradesh. (4) Devsari Dam HE Project MW, on river Pindar, located in district Chamoli of Uttarakhand state. (5) Naitwar Mori HE Project 59 MW, on river Tons ( a tributary of river Yamuna ), located in district Uttarkashi of Uttarakhand state. (6) Jakhol Sankri HE Project - 45 MW, on river Supin, located in district Uttarkashi of Uttarakhand state. (7) Arun-lll HE Project 402 MW, on river Koshi, located in Sankhuwasabha district of Nepal. (8) SJVN has been allocated two projects namely 486 MW Kholongchu Hydro Electric Project and 900 MW Wangchu Hydro Electric Project in Bhutan by Ministry of Power for survey, investigation and DPR preparation. (* Note :- The Implementation Agreements for the execution Khab HE Project has yet not been signed by Govt. of Himachal Pradesh with SJVN) SJVN is also making all out efforts to take up the execution of more projects in other states of the Country and abroad. 7.0 Industrial Relations Regular interactions are held with the representatives of the various Associations / Unions. The thrust area for discussions is related to policies as well as issues concerning with enhancing production, efficiency and improving organizational climate. The above actions of the Management paved the way for better employee - employer relations and the industrial relations during the year remained cordial. Recreational cultural and sports activities are being organized during different occasions for improving inter personal relations and also to bring out the talent of employees and their family members. 8.0 Environment, Resettlement & Rehabilitation Environment SJVNL is consistently devoting its energies towards Environmental & Ecological aspects in respect of various projects which are either commissioned or under construction/investigation stages. Environment Management Plan of NJHEP has been approved of Rs crore for Nathpa Jhakri Hydro Power Station. The Activities under EMP mainly consists of, Compensatory Afforestation, CAT Plan Fisheries Management, Environment Monitoring, Disaster Management Plan, Public Awareness programme etc.,cat Plan is an important part of Environment Management Plan, wherein the total out lay of CAT plan of Rs Crore has been approved. The CAT plan is being implemented through State Forest Department. In the implementation of CAT, there are various biological as well as engineering measures are being taken up such as construction of civil structural works and plantation in the catchment area of the project. As far as expenditure for the Natpha Jhakri Hydro electric project is concerned, SJVN has released Rs crore to the various state Govt. departments for the execution of environment management works besides this SJVN has also spent one crore rupees on the muck management activities. In addition to this SJVN has conducted a comprehensive CAT Plan study of entire Satluj basin within 168

175 Indian Territory. This plan, if implemented, it will help to address the issue of silt among all stake holders of Satluj basin. In view of the expected high costs of implementation, probability of sharing the cost by the stake holders executing hydro electric projects in the Satluj basin is under study. Environment Management Plan of Rampur Hydro Electric Project has been approved of Rs Crore. Whereas the cost of the approved CAT Plan is of Rs Crores. The activities under Environment Management are Compensatory Afforestation, CAT Plan, Net Present value of forests, Fisheries Management, Environment Monitoring, etc., The SJVN has released Rs crore for RHEP to the various department of GOHP for its implementation of Environmental management activities and an amount of Rs crore has also been spent on the construction of the retaining walls to properly retain the muck in the approved muck dumping sites. In addition to above SJVN has received Green Tech Environmental Excellence Gold Awards-2008, for the best practice of the Environment Management in and around the SJVN Projects. Resettlement & Rehabilitation SJVN, as a responsible corporate citizen, takes utmost care for the resettlement and rehabilitation of the Project Affected Families (PAFs) whose land or house or shop get affected due to construction of the hydro electric projects. Further, appropriate compensation to all the PAFs in accordance with the extant policies of the Government and SJVN, have been / are being made. As a result of vigorous pursuit for ensuring a fair Rehabilitation and Resettlement of the Project Affected Families, the World bank has lauded SJVNs efforts as under : THE SUCCESS OF THE RESETTLEMENT ACTIVITY UNDERTAKEN IN THIS PROJECT IS QUITE RARE FOR INDIA, AND CAN BE CONSIDERED AS ONE OF THE BEST EXAMPLES OF RESETTLEMENT IMPLEMENTATION IN BANK ASSISTED PROJECTS IN INDIA. IT SHOULD BE CONSIDERED AS AN EXAMPLE FOR OTHER PROJECTS. Environment & R&R Policy SJVN has adopted an environment, resettlement & rehabilitation policy which reiterates company s commitment to sustainable development which is within the carrying capacity of the eco-system and which promotes the improvement of the quality of life. Diverted Satluj River Rampur HE Project 169

176 CHAPTER Tehri Hydro Development Corporation Ltd. Tehri Hydro Development Corporation Ltd. (THDC), was incorporated as a Joint Venture Corporation of the Govt. of India (GOI) and Govt. of U.P.(GOUP), under the Companies Act, 1956, in July The main objectives of THDC are to develop, operate and maintain the Tehri Hydro Power Complex & other Hydro Projects and to provide quality, affordable and sustainable power with commitment to environment, ecology and social values. THDC has an Authorized Share Capital of Rs Cr. and the Paid up Capital is Rs Cr. as on The financial participation of GOI & GOUP in the implementation of the Projects is 75:25 for power component. THDC has established their presence in the Power Sector and has successfully commissioned the 1000 MW Tehri Power Station, which was a distant dream due to various social and other issues associated with it. With the commissioning of Tehri Power Station, agricultural scenario in Uttar Pradesh has changed with the additional water available for irrigation from the Tehri Dam and the drinking water position in Delhi has also improved considerably. PERFORMANCE HIGHLIGHTS (As on Mar. 09) Last unit of 250 MW of Tehri Power Station (4x250 MW) was declared under commercial operation in July 07 and Tehri Power Station successfully completed the first full year under Commercial Operation. THDC has generated 3164 MU during FY as compared to 2663 MU generated during FY Government accorded Investment Approval to the Vishnugad Pipalkoti HEP (444 MW) located in District Chamoli, Uttarakhand. Two Pumped Storage Schemes in the State of Maharashtra have been allotted to THDC for DPR updation and subsequent implementation subject to commercial viability. Under India-Bhutan Co-operation in hydro Sector development, MOP has allotted two Projects in Bhutan for updation of DPR. Financial Performance THDC has earned a Net Profit of Rs million during the year as compared to Rs million in the FY THDC has paid an Interim Dividend of Rs. 700 million for the year Visit of Hon ble State Minister of Power Sh. Jairam Ramesh to Tehri Power Plant 170

177 Visit of Secretary (Power) to THDC Stall at IITF 08 Operational Performance THDC has installed generation capacity of 1000 MW as on In addition THDC has 12 Projects in hand with a total proposed installed capacity of about 7844 MW which are in various stages of development ( Three projects (1844 MW) under Construction stage, two projects (240 MW) under DPR preparation stage, four projects (5240 MW) under DPR updation stage and three projects (520 MW) under Survey & Investigation stage.) During the year , THDC generated 3164 Million Units of Energy against target of 2649 Million Units. The Energy Generation during the year was 2663 Million Units against the target of 2649 MU. Capacity Index of Tehri HPP has been 100 % for the year and based on daily implementation schedule issued by NRLDC and this is subject to final tariff to be determined by CERC. Commercial Performance A Petition for fixation of provisional tariff for Tehri Power Station (1000 MW) has been filed before the Central Electricity Regulatory Commission. As an interim measure, CERC has approved a two- part tariff subject to adjustment after determination of final tariff by the Commission. During the current FY , revenue of Rs Cr. has been realized from the beneficiaries from the sale of electrical energy generated between & against the billing of Rs Cr. which is higher than the Revenue realized Rs Cr. in the FY S.No. Projects River Installed Capacity (MW) State UNDER OPERATION 1. Tehri Dam & HPP Bhagirathi 1000 Uttarakhand Total 1000 UNDER CONSTRUCTION 2. Koteshwar HEP Bhagirathi 400 Uttarakhand 3. Tehri PSP Bhagirathi 1000 Uttarakhand 4. Vishnugad Pipalkoti Alaknanda 444 Uttarakhand Total

178 UNDER FR / DPR PREPERATION 5. Jhelam Tamak HPP Dholiganga 126 Uttarakhand 6. Maleri Jhelam HPP Dholiganga 114 Uttarakhand 7. Karmoli HPP Jadhganga 140 Uttarakhand 8. Jadhganga HPP Jadhganga 50 Uttarakhand 9. Bokang Bailing HPP Dhauliganga (Kali) 330 Uttarakhand 10. Malsej Ghat PSS Kalu 600 Maharashtra 11. Humbarli PSS Vazarde Nallah 400 Maharashtra (a tributary of Koyna River) Foreign Projects Sponsored by Min. of External Affairs (4240 MW) 12. Sankosh HEP Sankosh River 4060 Bhutan 13. Bunakha HEP Wangchu 180 Bhutan Total 7844 GRAND TOTAL 8844 PROGRESS OF ON GOING PROJECTS Koteshwar HEP (400 MW), Uttarakhand Considerable progress has been achieved on civil works front after proactive action taken by the Corporation in March 07 to execute the civil works on Risk & Cost of the contractor. After completion of the excavation work in the major areas, about 65% of Concreting has been done till 31st Mar 09. Erection of Electro - Mechanical equipments has commenced in Nov. 08 and is in full swing. The Project is scheduled for commissioning during Tehri PSP (1000 MW), Uttarakhand Tehri Pumped Storage Plant (1000 MW) is first Central Sector Pumped Storage Scheme. Essential works of Tehri PSP have been completed along with the execution of Tehri Stage- I like, Head Race Tunnel, Maintenance Gate Shafts, Transformer Hall, Main Cable Tunnel, Interface Facility Civil works. Global bids invited for execution of the project on Operation of chute Spillway During Testing-Tehri Power Plant (1000 MW) 172

179 EPC/ Turnkey basis are under evaluation. To effectively utilize the time period till EPC contractor is positioned at site, the excavation of Approach Adits to Machine Hall cavern, D/S Surge Shaft &Tail Race Tunnels etc has been completed. The work of Link Adit 8-9 is in progress so as to isolate the PSP construction traffic from the approach to Tehri Power Station. The Project is scheduled for commissioning within 54 months from the award of EPC contract. Vishnugad Pipalkoti HEP (444 MW), Uttarakhand Govt. accorded investment approval for implementation of Project in August 08. The infrastructure works viz. Construction of Roads, Bridges, and Residential Colonies etc. and land acquisition are in progress. The Project is under consideration for World Bank funding and the project preparation activities are going as per the schedule. The main works are to be executed under two EPC packages, one for Civil & H/M works and the other for E/M works. For Civil & H/M works prequalification of the bidders has been cleared by the World Bank. The Project is scheduled for commissioning in the year PROJECTS UNDER FR/DPR PREPARATION In the State of Uttarakhand THDC has taken up the work of Survey & Investigation viz preparation of Feasibility Report (FR) and Detailed Project Report (DPR) on six Projects, after signing Implementation Agreement with GoUK. Feasibility Report of Jelam Tamak HEP for an installed capacity of 126 MW has been prepared and preparation of DPR work has been taken up. Feasibility Report for Malari Jelam HEP for an installed capacity of 114 MW has been prepared. CEA has conveyed the Commercial Viability of Malari Jhelam Project. The Projects namely Bokang Bailing (330 MW), Karmoli (140 MW), and Jadganga (50MW), come under restricted wild life area and necessary Interlocutory Application has been filed in Hon ble Supreme Court of India for de-reservation of the same. For Bokang Bailing Project (330 MW), permission to carry out Survey & Investigation has been accorded by National Board of Wild Life(NBWL) and work is being taken up. These Projects are planned for benefits in the XIIth Plan ( ) and beyond. Kishau Dam Project (600 MW): Govt. of Uttarakhand had allotted the Kishau Project to THDC in Nov 02. MOU for implementation of the Project has been under discussion with the State Govt. The Himachal Govt. is to convey their concurrence to the MoU, being a partner Home State. THDC was given go ahead in Sept.'08 for updation of DPR with 50% funding by THDC and 50 % by Ministry of Water Resources (MOWR) pending settlement of issues regarding cost apportionment and sharing of Power. The cost estimate submitted by THDC for updation of DPR has been forwarded to CEA for vetting. In The State of Maharashtra THDC has taken a lead in the development of Pumped Storage Schemes (PSSs) in the Country, which has potential of MW. Major potential of PSS is in the Western region. THDC had signed MOU with NPCIL in February, 2007 to jointly develop PSS and other Hydroelectric Projects in India. The Govt of Maharashtra allotted two PSS viz. Malshej Ghat PSS- 600 MW & Humbarli PSS MW to the joint venture of THDC and NPCIL in April' 08 for updation of DPRs. The Projects shall be taken up for implementation, if found viable. The work of updation of DPR has been taken up. Development of Projects In Bhutan Under Indo-Bhutan Co-operation in Hydro Sector Development, MOP has allotted two Projects namely Sankosh Multipurpose Project (4060 MW) and Bunakha HEP (180 MW) in Bhutan for updation of DPR. The works of updation of DPR for both the Projects have been taken up. ENGINEERING CONSULTANCY Government of Uttarakhand (GOUK) had entrusted the work of engineering consultancy for stabilization of Varunavat Parvat to THDC after major disaster that took place in the year 2003 in Uttarkashi City. THDC is providing the complete engineering solution to the major hill stabilization problem and also supervising the execution works at site, as Social Responsibility. REHABILITATION AND RESETTLEMENT THDC has set a benchmark in the Rehabilitation and Resettlement of the Project affected families of Tehri HEP. The provision of R&R package has been aimed at the social and economic upliftment of the displaced people. Additional improvement measures of R&R package, such as road connectivity, relocation of public facilities, arrangement of Cable Car & Ferry Boat for cut-off area etc. have been implemented under the Tehri HEP stage-i. A grievance redressal mechanism for project affected families is in place as per orders of Hon'ble Supreme Court and has been very effective in independent and transparent settlement of claims. THDC has formulated a Resettlement and Rehabilitation Policy for upcoming projects taking into account the provisions of NRRP-2007 and in consultation with concerned stakeholders. The policy addresses issues of loss of land, houses, other resources and means of livelihood etc. of the PAFs due to project construction. The policy aims to address the concerns of the vulnerable individuals. Major emphasis has been laid upon economic upliftment of the PAFs and provision of sustained livelihood. The improvement over NRRP-2007 are as under: 173

180 Higher rehabilitation grant, Enhanced Cattle grant, 0.5% of the project cost for local area development. Each affected family will be paid 100 days of Minimum Agriculture Wages (MAW) per year for a period of 5 years. The amount will be paid as a grant towards the loss of fuel and fodder etc. 100 units free electricity provided to each affected house hold per month for a period of 10 years from the date of commissioning. Under negotiated settlement, if any Project Affected Person has a landholding of less than one nali or is landless, he/she will be entitled for an R&R package of at least one and half (1.5) nali. Out of 13% free power (12% for the Home State ), 1% shall be utilised for contribution towards local area development. ENVIRONMENT MANAGEMENT THDC is highly sensitive to the cause of environment. The Tehri Hydro Power Project is a successful example of mitigation of almost all possible environmental concerns based on result of studies carried out by the expert institutions like BSI, ZSI, NEERI etc. Various environment friendly measures such as establishment of Mahasheer fish Hatchery at Tehri Project, would play an important role in providing employment opportunities in the form of fishing. The formation of Tehri Reservoir as a large water body has started attracting migratory birds. This will throw opportunity in the field of tourism, water sports etc. THDC has undertaken implementation of other Hydro Power Projects in Alaknanda, Bhagirathi and Sharda Valleys and extensive studies are being done to assess the possible impact on the Environment and mitigation measures shall accordingly be taken. THDC is committed to set highest technological standards for its hydro projects in the field of environment. Apart from fulfilling mandatory requirement of preparing EIA/EMP report, THDC is getting further advance studies aimed at state of the art developments. For Vishnugad Pipalkoti HEP, following pioneering studies are being carried out: (i) Fish study and assessment of managed downstream river flow (ii) Terrestrial biodiversity study (iii) Consolidation of environmental assessment & management reports and (iv) Social Assessment Study These studies are designed to undertake: An assessment of the impact of the proposed project and recommend a framework for managing downstream river flow issues. An assessment of the impact of the proposed Vishnugad-Pipalkoti hydropower project on the terrestrial flora and fauna in the project area and its surrounding, and to recommend a framework for managing these impacts. The consolidation of the reports related to various independent studies, completed or on going, into an integrated report. For incorporating social analysis and preparatory processes into project design and implementation to make the project responsive to social development concerns and enhance benefits to poor and vulnerable people while mitigating risks and adverse impacts. In addition to above, in view of considerable adverse experience of turbine erosion in Himalayan hydropower projects, detailed study to determine optimal measures for dealing with sediment is being carried out. THDC is also exploring possibilities for harnessing Clean Development Mechanism (CDM) benefits for its Hydro Projects. CORPORATE PLAN The Corporate Plan prepared by THDC, which includes the financial projections for the next decade, stipulates that the THDC could endeavor to take up additional projects of at least 2500 MW capacity over the next ten years from its own resources. The Company could also look to the SPV route with JV partners. THDC shall be contributing 400 MW in Capacity addition Programme during the XIth Plan. THDC propose to add 1684 MW in the Capacity addition Programme in the XIIth Plan so as to reach the installed capacity of 3084 MW. PROJECT FINANCING The planned capacity addition in the various upcoming projects is proposed to be financed on Debt Equity Ratio of 70:30. Considering the financial growth achieved by the Corporation, it would be possible to fund part of the Equity portion of the New Projects through Internal accruals. The Internal accrual shall contribute 50% of Equity in the execution of 444 MW Vishnugad Pipalkoti HEP. HUMAN RESOURCE MANAGEMENT THDC considers Human Resource as an important asset of the Organisation. Building Competencies and bringing excellence is the main objective of the Organisation. The challenge before the Organisation is to attract, retain and manage a quality work force, who have Vision, Selfconfidence, Leadership and right mind set to put best effort for the Organisation. Management is continuing with the policy of infusing fresh talent every year and in the process has recruited Engineer 174

181 Trainees (ETs), through Campus recruitment from the accredited Engineering Institutes besides NITs/IITs. For grooming the newly inducted Trainees, well-defined curriculums have been designed. An arrangement has been made with Power Management Institute, NOIDA to impart the training. Electricity Reforms, Electricity Pricing & compliances under the Electricity Act were given due focus while designing the course module for executives. An Industrial Engineering Group has been formed. The Group is responsible for Manpower Planning and effective utilization of available manpower. Competency mapping exercise has been undertaken so as to select the right talent for manning key position. Comprehensive 'Training Need Analysis' of the organization, to meet the present & future requirement of Talent Management is also under consideration. TRAINING & DEVELOPMENT THDC gives highest importance to Training & Learning of employees at all levels. Workshop on 'Growth & Excellence' was organized for all Senior Executives of the of the Corporation. THDC attaches special attention to other special groups like SC,ST, OBC, Women & Physically Challenged persons. Different categories of Personnel were equitably considered for nominations to various programmes. Dedicated programme for women employees was organized empowering them to compete & collaborate along with others. Various HR policies have been formulated to encourage employees for skill development by conducting in house training programmes and by providing opportunity to pursue Management Courses through Distant learning mode from IMT Ghaziabad, a premier business school. In technical area qualification improvement programmes are being organized in association with BITS, Pilani and University of Petroleum and Energy Studies, Dehradun. To develop IT culture, data pertaining to personnel, information, Recruitment, training etc. have been computerised. CORPORATE SOCIAL RESPONSIBILITY THDC is committed for fulfillment of its social obligation under Corporate Social Responsibility. The CSR concept has acquired significance at National Level as a strategic tool for sustainable development. THDC has recently formulated a policy with following objectives: To undertake community development in the neighbourhood area of operating stations with particular focus on women, children, disabled persons and aged persons. To create appropriate partnership with the concerned stakeholders for the effective delivery of community development programs through consultation and participation. To explore and work in various domains of community development such as Health, Education, Drinking Water, peripheral development etc. on individual basis or partnership basis with the help of Govt, NGO, Private firm etc as per suitability to promote sustained livelihood, overall development and well being of the target communities. For implementation of CSR activities a budget of 1% of Net Profit is being provided. 175

182 CHAPTER DAMODAR VALLEY CORPORATION Damodar Valley Corporation (DVC), one of the major infrastructural projects of independent India, came into being on the 7th July, 1948 by an Act of the Central Legislature. II. DVC s ORGANISATIONAL STRUCTURE The Corporation consists of the Chairman and two part-time Members appointed by the Central Govt. in consultation with the State Govts. of Jharkhand and West Bengal. The Chief Executive Officer is the Secretary who alongwith the Financial Adviser of the Corporation is appointed by the Central Govt. The Head of the Engineering Wing are the Director (Technical), Director (Operation), Director (System) and Director (Commercial). They are assisted by Sr. Chief Engineer/Chief Engineers who head the different groups in the engineering wings, viz. Generation, System, Projects, Civil Engineering etc. III. FUNCTIONS OF DVC Promotion and operation of schemes for irrigation, water supply and drainage. Promotion and operation of schemes for the generation, transmission & distribution of electrical energy, both hydro electric and thermal. Promotion and operation of schemes for flood control in the Damodar river and its tributaries and the channels and navigation. Promotion of afforestation and control of soil erosion in the Damodar Valley. Promotion of public health, agricultural, industrial, economic and general well-being in the Damodar Valley and its area of operation. Mejia Thermal Power Station,DVC 176

183 Tilaiya Hydel Station However, in keeping with rapid industrialization in the Damodar Valley area, power generation, transmission and distribution gained priority for providing electricity to the core industries like steel, coal, railways and other industries/consumers directly and through respective State Electricity Boards. IV. PERFORMANCE HIGHLIGHTS (UPTO MARCH'09) a) POWER GENERATION PHYSICAL MTPS Units 5 & 6 under commercial operation w.e.f and respectively adding 500 MW to DVC's operating thermal capacity of 2210 MW. Highest Daily Gross Energy Generation of MU achieved on Highest Daily Thermal Energy Generation of MU achieved on All time high Peak System Generation of 2245 MW achieved on at Hrs. All time high Peak Thermal Generation of 2165 MW achieved on at Hrs. Highest Monthly Gross Energy Generation of MU achieved in March, Highest Monthly Thermal Energy Generation of MU achieved in March, b) PROVISIONAL FINANCIAL PERFORMANCE(APRIL'08 TO DECEMBER'08) Particulars (April'08-Dec.'08) 1. Sale of Power (MU) Financial Data: [Rs. Crores] a. Total Revenue 3719 b. Power Profit (Before Tax) From Current Year's Operation 959 c. Loss on Irrigation & 54 Flood Control d. Income Tax 93 e. Net Surplus (PAT) [b-c-d]

184 Note: 1. The above profit does not include Annual Adjustments, Provisions for Pay Revisions & Others. 2. Pending submission of Fuel Surcharge Claim to the consumers for the period c) GENERATION AND POWER SUPPLY POSITION (April'08 - Dec.'08), the same has not been included in Revenue. 3. Effect of Tariff Revision will be given in accounts in the year in which distribution Tariffs are fixed by the Hon'ble SERCs. Particulars FY FY (Provisional) 1. Generation (MU) (i) Thermal 14642* 15321** (ii) Hydel TOTAL Thermal PLF (%) Purchase of Power (at DVC Bus) (MU) Total Stock (at DVC Bus) (MU) 14,415 14, Saleable Units (at DVC Bus) (MU) 14,045 14,555 * Excluding infirm power from MTPS U#5,6. ** Including infirm power from MTPS U#6 V. CAPACITY ADDITION PROGRAMME AND ACHIEVEMENTS i) 10th Plan Power Projects of DVC Sl. No. Project Capacity Major achievements Target COD (MW) 1 Mejia TPS Extn. Unit # 5 & COD achieved for Unit-5: - ( 2 x 250 MW) & Unit-6: Chandrapura TPS Extn. 500 Unit-7: U-7: July'09 Unit # 7&8 ( 2 x 250 MW) 1) Boiler Light Up: U# U-8: Oct'09 2) Hydro test (Non-drainable)- U#7: ) Chemical Cleaning-U#7: ) TG on Barring gear-u#7: ) Oil synchronization U-7: Unit-8: Hydro Test of Boiler : ii) 11th Plan Power Projects of DVC Sl. No. Project Capacity Major achievements Target COD (MW) 1. Mejia Phase-II ) Boiler Drum of Unit#1 lifted on Unit:1: 12/2009 Unit-1&2 (2x500 MW) ) Condenser erection of U#1 Unit:2: 03/2010 started on one month ahead of schedule. 3) Turbine erection started 15 days 178

185 ahead of schedule. (Sch.: ) 4) Boiler drum of U#2 lifted on Koderma TPS Stage-I Unit-1& ) Boiler erection work for U-1 Unit-1:06/2010 (2x500 MW) started on ) Chimney PCC completed in Unit-2:09/2010 Oct ) ESP of U-1: PCC & RCC raft completed. 4) Start of Boiler erection of U-2: ) Drum lift of U-1: Durgapur Steel TPS Unit-1& ) Boiler erection started from Unit-1:08/2010 (2x500 MW) Unit-2:11/2010 2) Boiler erection of U-2 started (Best Effort: 10/ on ) 3) Power House U-1&2 Structural erections started. 4) TG raft of both units completed. 4. Raghunathpur TPS Unit-1& ) Excavation work completed and Unit-1:11/2010 (2x600 MW) all RCC work for footing completed Unit-2:02/2011 for U-1. 2) Boiler structure erection of U-I started on Bokaro 'A' TPS Unit ) Site handed over to BHEL Unit-1:12/2011 (1x500 MW) as per schedule 2) Survey and soil investigation work completed. iii) Ordering Status of 11th Plan Power Projects of DVC Sl. No. Name of the project with Order placed on Contractor package Mejia TPS Phase-II ( 2 x 500 MW) 1 Main Plant Package LOA placed on M/s. BHEL 2 Coal Handling Package LOA placed on M/s ELECON 3 Water Package LOA placed on M/s. L&T Ltd. Koderma TPP Stage-I ( 2 x 500 MW) 1 Main Plant Package LOA placed on M/s. BHEL 2 Coal Handling Package LOA placed on M/s. L&T 3 Water Package LOA placed on M/s. Kirloskar Brothers Durgapaur Steel TPP ( 2 x 500 MW) 1 Main Plant Package LOA placed on M/s. BHEL 2 Coal Handling Package LOA placed on M/s. ThyssenKrupp Industries India Pvt. Ltd. 179

186 3 Water Package LOA placed on M/s. VA Tech Wabag Ltd. Raghunathpur Phase-I TPP (2 x 600 MW) 1 Main Plant Package LOA placed on M/s. REL 2 Coal Handling Package LOA placed on M/s. TRF Ltd. 3 Water Package LOA placed on M/s. Machintosh Burn Ltd. Bokaro 'A' TPS ( 1 x 500 MW) 1 Main Plant Package LOA placed on M/s. BHEL iv) JOINT VENTURE PROJECTS OF DVC: Sl. Name of the Location Capacity EPC Tentative No. Project (MW) Awarded to COD Implementation through Joint Venture Company: 1 Maithon RB TPS Dist:Dhanbad 1050 M/s. BHEL for Unit-1: 10/2010, Unit-1&2 (2x525 MW) State: Jharkhand BTG Pkg. Unit-2: 04/2011 [Under implementation through Maithon Power Ltd., a JVC of TPC & DVC] 2 Bokaro Steel TPS Dist: Bokaro 500 Not yet awarded Pre-project activities (2x250 MW) State: Jharkhand are under progress. [Under implementation through BPSCL, a JVC of DVC & SAIL] Sub-Total 1550 VI. TRANSMISSION PROJECTS In order to distribute power to the various consumers at different load distribution centers from DVC Grid, a network of Transmission and Distribution lines has been established which is being re-inforced according to need. For evacuation of power generated through the Eleventh Plan Capacity Addition and also to meet the internal load growth, a master plan has been prepared in consultation with CEA both at 400 KV (for export) and at 220 KV (for internal load) and action has been taken for implementation of new transmission infrastructure. i) PROGRESS UPTO MARCH 2009 Sl. Schemes Progress upto Remarks No KV Mejia-Ramgarh Line via Gola 70% Work under progress PDC: subject to forest clearance by 05/ KV CTPS-MTPS LILO at Kalyaneswari 54% Work under progress PDC: KV Ramkanali DTPS LILO at Jamuria 97% Work under progress PDC: KV Patherdih-Govindpur 3rd &4th circuit. 80% Work under progress PDC: rd Ckt. between MHS & Kalyaneswari S/S 95% Bunching of conductor at both the end is yet to be done. PDC:

187 KV CTPS-BIADA Line 99% Stringing between loc. 41 and 42 is yet to be done. PDC: subject to availability of railway clearance /33 KV Jamuria S/S 99% Commissioning awaiting for Jamuria line charging. PDC: KV Infrastructure at Barjora S/Stn. 85% Erection of both the ATRs also completed 70%. PDC: Retrofitting of Numerical relays in various 25% Work under progress PDC: Sub-Stations No. 220 KV Bays at Mejia, Kalyaneswari 95% At Mejia and Kalyaneswari CEA & Ramgarh S/Stn. inspection done and ready for commissioning after CEA approval. PDC: Reconductoring of 2 Nos. CTPS-Putki 29% Work under progress. PDC: D/C Line KV Dhanbad S/Stn. LILO of 220 KV 40% Work under progress. CTPS-KLY at Dhanbad PDC: Ph I , Ph II KV Dhanbad-Giridih Line 02% Material supply started. Schedule completion time: KV Koderma-Giridih Line 03% Work under progress. Foundation done at location 4/311. Schedule completion time: KV Koderma S/Stn. 09% Work under progress. Schedule completion time:ph I , Ph II KV S/C LILO of Durgapur-Jamshedpur 05% Check survey held up due to (PG) Line at DSTPS Aerotropolis project at Andal. Schedule completion time: KV D/C DSTPS-RTPS 16% Foundation completed at 57 Nos. locations. Total Location 211 Nos. Schedule completion time: KV S/C LILO at RTPS of 10% Total loc. 17 Nos. Foundation work Maithon-Ranchi Line started on Foundation completed at location 5,8,9. Excavation completed at location No.6 Schedule completion time: KV RTPS-Ranchi (PGCIL) 08% Forest proposal submitted on Foundation completed at 54 Nos. locations. Total Loc. 400 (Approx.). Schedule completion time: System Energy Management 02% Work started on at Kalyaneswari S/S. 14 Nos. approved out of 42 S/S. Schedule completion time: Remote Meter reading through GSM 95% One No. is pending due to some modification required in S/S end out of first 23. PDC: (Considering only 23 Nos. S/S) 181

188 ii) Projects initiated Sl. Schemes Progress upto Remarks No KV Gola S/Stn. NIL W.O. issued on for boundary wall KV Giridih S/Stn. NIL Temporary Fencing done almost 95%. 3. 2nd circuit LILO of 220 KV Mejia-Maithon NIL NIT floated by PSR Line at Burnpur VII. RURAL ELECTRIFICATION PROGRAMME With a view to provide access to electricity to all rural households, Government of India has launched a new scheme under RGGVY. The task of implementing the scheme and to augment resource capacities for implementation, Union Ministry of Power has involved CPSUs like NTPC, NHPC, PGCIL and DVC for making available their expertise and capabilities to the states willing to use the same. DVC has been assigned the project of Rural Electrification in Purba Medinipore district of West Bengal and eight districts in Jharkhand viz. Dhanbad, Bokaro, Koderma, Giridih, Hazaribagh, Gumla, Simdega and Chatra as deposit work on behalf of respective SEBs. REC has been working as nodal agency for complete supervision of the programme from concept to completion. The role of DVC is in project formulation, planning, design and engineering, procurement of goods and implementation/commissioning of the project. i) PROJECT AT A GLANCE IN WEST BENGAL : DVC has been executing Rural Electrification Project under AREP (Accelerated Rural Electrification Programme) Scheme in the district of East Medinipore of West Bengal covering 800 Nos. un-electrified mouzas as per the project sanctioned by REC ( Seven No. of mouzas found already electrified during detailed survey). ii) WORK STATUS OF ONGOING PROJECT AS ON IN WEST BENGAL (EAST MEDINIPORE DISTRICT) a) Total no. of Mouzas : 800 b) Mouzas Energised : 731 (commercially) c) Technical Details furnished : 779 d) BPL Service Connection : 8605 effected e) Renovation work at Singhda : Completed and Sub-Station commissioned on 02/11/2006 f) Work Completed and : 48 awaiting inspection by WBSEDCL g) Gram Panchayat Certificates : 628 received h) No. of Mouzas where work : 20 is held up/delayed due to dispute iii) PROJECT AT A GLANCE IN JHARKHAND: Similar assignment has been entrusted to DVC for Rural Electrification Project in the state of Jharkhand by State Electricity Board (JSEB) on behalf of Government of Jharkhand with the concurrence of REC. The Project in Jharkhand will cover 8377 villages in 8 districts namely Dhanbad, Bokaro, Koderma, Giridih, Hazaribagh, Gumla, Simdega and Chatra spread over 76 No. of blocks under RGGVY Scheme. iv) WORK STATUS AS ON Work Order for all the eight districts viz. Dhanbad, Koderma, Bokaro, Gumla, Hazaribagh, Giridih, Simdega and Chatra have been awarded on receipt of formal sanction from REC on the basis of DPR estimated rate and scope. v) PROGRESS: Project under Xth Plan Sl. District Target/ Un-Elect. Elect. Total No. Conns. To Achievement No. Achieved villages Villages of villages BPL HHs in % electrified to be done (Village (D+E) (Nos.) electrification) (A) (B) (C) (D) (E) (F) (G) (H) 1 Target Dhanbad Achv % 182

189 2 Target Koderma 51.83% Achv Target Bokaro % Achv Target Gumla % Achv Target Simdega % Achv Regarding work of new 33/11 kv Sub-Station including augmentation of existing S/s covered under Dhanbad, Koderma, Bokaro, Gumla and Simdega districts, civil work in 19 No. of S/s locations are in progress and expected to be completed matching with the project completion. Project under XIth Plan Sl. District Target/ Un-Elect. Elect. Total No. Conns. To Achievement No. Achieved villages Villages of villages BPL HHs in % electrified to be done (Village (D+E) (Nos.) electrification) (A) (B) (C) (D) (E) (F) (G) (H) 1 Target Chatra Achv % 2 Target Giridih Achv % 3 Target Hazaribagh Achv % Regarding work of new 33/11 kv Sub-Station including augmentation of existing S/s covered under Chatra, Giridih and Hazaribagh districts, civil work in 7 No. of S/s locations are in progress and expected to be completed matching with the project completion. VIII. ENERGY CONSERVATION PROGRAMME DVC has been making continuous efforts to induct efficient and modern practices in Energy Management System to increase the availability of power with lower Oil, Coal, Water and Aux. Power consumption. The Energy Conservation Programme and measures taken by DVC are furnished hereunder. DVC is organizing every year School level as well as State Level Painting Competition for students of Jharkhand & West Bengal as part of the National Awareness Campaign of the Ministry of Power, Govt. of India for promoting Energy Conversation as per guideline from Bureau of Energy Efficiency and in close association with the respective State Education Department. This year the State Level Competition along with prize distribution function was held at Kolkata and Ranchi on Awareness drive among employees regarding Energy Conservation is also taken. The following measures have been taken for efficient Energy Management System of the Power Plants: a) Daily Co-ordination meeting and monitoring of various Efficiency & Conservation parameters and Monthly ORT meeting at plant level. b) Formation of Energy Efficiency & Conservation of Energy Cells in Power Plants. c) Carrying out Energy Audit/Performance test of Thermal Units/Equipments/Systems /Sub-systems. d) Optimization of lighting load, gradual replacement of incandescent lamps, mercury vapour lamps, tube lights by energy efficient CFL/HPSV/T5 etc. lamps for illumination inside and outside Power Houses. e) Gradual replacement of old energy meters and provisioning of energy meters wherever required by new higher accuracy static meters for more accurate accounting of Aux. Consumption and equipment performance monitoring. f) Gradual introduction of energy efficient equipments, e.g. Energy Efficient Cartridge for BFP, Energy Efficient motors Microprocessor based ESP. 183

190 g) Timely replacement of BFP recirculation valves. h) Cooling Tower overhauling, CCW on-line treatment, condenser tube acid cleaning, addressing air ingress into condenser, comprehensive O/H of CT fans all to optimize system efficiency and Aux. Power Consumption. IX. OPERATION SERVICES AND UPGRADATION Renovation & Modernization (R&M) wing has been renamed as Operation Services & Up-gradation (OS&U) to look into the up-gradation process / system towards improved and sustained generation of power in DVC Power Plants. DVC associated with NTPC in August, 2005 in Partnership in Excellence (PIE) programme for BTPS B, CTPS & DTPS for improvement in plant performance by adopting better O&M practices and Comprehensive Overhauling of the units through short ( ), medium ( ) and long term( ) plans. Towards improved and sustained generation of power from BTPS B, CTPS & DTPS, replacement of Boiler Pressure Parts, Electrical and C&I which have become obsolete, Rotary Equipment (Motors, Pumps, Fans etc.) and Sub- Systems which are under performing and less efficient along with up-gradation of equipment with introduction of newer technology and installation of equipment related to pollution control have been envisaged. The action plan/replacement programme has been under implementation matching with the overhauling of the units in FY and as per 6-year O/H Rolling Plan and receipt/availability of spares ordered/under order Long term action plan is presently under implementation during FY and in view of material delivery schedule and unit O/H schedule, likely to be completed by FY In one way, need based R&M is under implementation through this improvement action plan. Major Activities of Operation Services and Upgradation i) Operation Services : Regular monitoring of day- to- day power generation and associated O&M problems. Assistance to power stations for maximization of generation and availability with approach towards zero forced outage. Assistance for induction of improved maintenance management practices. Formulate new maintenance strategies. Generation and overhaul scheduling (Rolling Plan) and co-ordination with MOP, CEA and other external agencies. Develop and implement new initiatives. Collate and review O&M budgets and cost reduction initiatives. Co-ordinate O&M monitoring and lend proactive assistance. Co-ordination of trip analysis/ lessons learnt/ feedback recycle. Develop and update system and ensure compliance. Service support to power stations in terms of : Monitoring overhaul quality and other repair jobs at outside works. Expert assistance from OEM and other reputed agencies. Developing improvement initiatives. Implementing improvement initiatives. Spares and vendor development. Finalization of purchase/works contract requiring assistance of headquarters. ii) Up-gradation : Technology up-gradation in different areas of power stations, replacement of obsolete equipments and modification in different areas such as boiler, turbine and their auxiliaries, coal handling plant, ash handling plant, coal mills, electrical systems has been taken up. X) NON-POWER ACTIVITIES OF DVC a) WATER RESOURCE MANAGEMENT Out of originally planned eight storage reservoirs in the Damodar basin, construction of multi-purpose Dams at Tilaiya (1953), Konar (1955), Maithon(1957) and Panchet(1959) by DVC has been completed in the first stage. But the designed storage levels could not be achieved due to constraints in acquiring the required land from the State Governments in respect of Maithon and Panchet reservoirs. In the first phase, total flood reserve capacity planned was 1.77 million acre feet. But due to non-acquisition of land, flood reserve capacity was only 1.05 million acre feet, which has been further reduced to 0.95 million acre feet due to progressive siltation. Maithon and Panchet, being the terminal reservoirs, play a vital role for water management in the valley. However, even with the partial implementation of the scheme, DVC over the years has played a vital role in moderation of the floods in the lower valley to a great extent. Progress made in water resources management during the year upto 31st March, 2009 of the year are as under : i) FLOOD CONTROL During the year under consideration, south west monsoon was active almost from the beginning of June, 2008 and remained active till the end of September,2008. The catchment received more or less normal rainfall during the period. As the monsoon was evenly distributed, no significant flood was experienced by the valley. 184

191 ii) IRRIGATION Management and operation of irrigation infrastructure developed by DVC in the lower valley has been handed over to the Government of West Bengal in 1964 and DVC provides water from its reservoirs, as per demand, for Kharif, Rabi as well as for Boro cultivation in the lower valley. Water supply for Boro cultivation is not mandatory; this supply is made from excess storage available at the end of monsoon after meeting the committed requirements. Water drawal in irrigation canal for Kharif crops during was 8.96 lakh acre feet and the area irrigated is in the tune of 8.2 lakh acres. The allocation of water for Rabi and Boro crops was made in the 120th meeting of DVRRC held at Kolkata on Over and above a committed allocation of 70,000 acre feet for Rabi cultivation, an allocation of 2,12,500 acre feet was made for Boro cultivation. It is expected that an area around 50,000 acres can be covered under Rabi crops and around 75,000 acre of land can be irrigated under Boro crop. Supply of water for Boro crops started from February, 2008 and is expected to be continued upto the end of April, Upto 31st March, 2009, a quantity of about 2,74,000 acre feet of water has been drawn for irrigation for Rabi and Boro cultivations. iii) DRAWAL OF INDUSTRIAL & DOMESTIC WATER Many industries have come up in the Damodar Valley in the last few decades for availability of power and water in the region. Uptil now DVC provides water to around 200 installations of different agencies drawing water for industrial and domestic purposes. The extent of present allocation of water to different agencies is in the tune of 453 MGD. As demand of water for this purpose is growing up due to rapid industrialization in the States, about 25 new industries are in the fray for allocation of water. iv) WATER INVESTIGATION & DEVELOPMENTAL INITIATIVES As a part of developmental activities in water resources management, CWC was entrusted for preparation of detailed project report and survey and detailed investigation of the proposed Balpahari project in September, An interim report, indicating cost and benefit parameters of the project have been submitted by CWC in December, The comments from Government of Jharkhand on the interim report have been received recently. Comments have been received from Government of West Bengal. Comments received from the State Goverments have been forwarded to CWC for consideration. Due to late arrival of comments from the State Governments and other reasons, the work could not be completed in time. As such, as requested by CWC, a time extension upto September, 2009 has been allowed to complete the study. Presently detailed field investigation to estimate the irrigation command area of the project is being carried out by CWC and borehold exercises for dam and barrage axes are being conducted. For optimal utilization and further development of the water recourses of the valley, WAPCOS has been entrusted in July, 2007 for preparation of a comprehensive Master Plan Study to be completed by 18 months' time. The draft final report has been submitted by WAPCOS in January, The same has been circulated to the participating State Governments and CWC for offering their comments to be incorporated in the report before finalizing the study. Since no comments from any side have been received as yet, the time period for completion of the work has been extended upto June, b) ECO-CONSERVATION & AFFORESTATION, SOIL CONSERVATION The conservation and development of land & water are crucial for sustained agricultural production as these constitute the important natural resource base for meeting the essential requirement of the society. The degradation of land and improper land use in the catchment area possess a severe threat to the life of the reservoirs and agricultural productivity. The Damodar catchment is an area of 24,235 Sq. K. M. that spreads across the State of Jharkhand and West Bengal. DVC in its commitment for catchment area treatment has been doing integrated Micro Watershed Management for the last 60 years with the objective of reducing siltation of the reservoir, preventing degradation of land and enhancing its productivity, storage of surface rain water in the catchment to reduce flood peaks and volume of run-off etc. Productivity enhancement and livelihood has been given priority alongwith conservation measures. Resource development and usage has been planned to promote farming and allied activities to promote local livelihood while ensuring resource conservation and re-generation. The programme has been effective for natural resource conservation by increasing productivity of the land bringing additional area under agriculture, employment generation and social upliftment of beneficiaries living in the Rural Areas. With an aim to attain the above objectives, Micro-watershed Management Programme is going on in 30 Micro-Watersheds wherein 8785 Ha of area will be treated for soil and water conservation measures. A total of 227 rain water harvesting structures is being constructed spanning these 30 Micro Watersheds. DVC has launched a special programme of Diamond Jubilee Afforestation & Soil Conservation Programme in 15 Micro Watersheds from the year with special emphasis on Afforestation on the waste land in the Watersheds which either belong to the farmers or to the community. Under the scheme, a total of 1980 Ha of land has been brought under Afforestation and 246 drainage line treatment structures for conservation of soil and rain water are to be constructed besides advance work on 2700 Ha for afforestation. 185

192 Target and Achievement of : (Physical in Ha, Structural in Nos. Financial in lakhs) Year Scheme Target Achievement Phy. Str. Fin. Phy. Str. Fin DJ (approx.) RVP (approx.) DJ - Diamond Jubilee Afforestation & Soil conservation Scheme. RVP - River Valley Project Scheme. c) DAMODAR VALLEY MISSION DVC has initiated to venture new horizon with a view to achieve the objectives and mandate of the Organisation named "Damodar Valley Mission". The Objectives of the DVC Mission are to make Damodar Valley more eco friendly for survival of its fragile eco system, making it a better place to live in. The Objective can be achieved by proper Natural Resource Management, Soil Conservation/Soil regeneration in the valley area through proper coordination between various governmental institutions and departments of the participating Governments and Central Government and people's participation. d) SOCIAL INTEGRATION PROGRAMME The Social Integration Programme is mandated in the DVC Act of 1948 wherein while defining the role to be played by the Corporation it has been observed that one of the functions of the Corporation under Section 12 of the DVC Act is the promotion of public health & the agricultural, industrial, economic and general well being in the Damodar Valley and its area of operation. In order to execute the mandated functions and fulfill its commitment towards prosperity of the community residing in and around it s command area, DVC launched the Social Obligation Programme in the year 1981 in 25 villages around Bokaro, Maithon & CTPS. The programme was rechristened as SIP in and the coverage was enhanced to 375 villages in 14 Blocks spread over West Bengal & Jharkhand. 186 The objective of the SIP Schemes is the upliftment of the socio-economic condition of the communities residing within a 10 km. periphery area of the main projects by way of targeting the deprived sections of society like the SC, ST, BPL & OBC populace. The programme is participatory in approach and involves the community at every stage from planning to implementation and is achieved through organizing community into Self Help Groups through the process of social mobilization, conducting training and capacity building programmes providing and sustaining income generating assets. DVC allocates 2% of its previous years net profit as the annual budget for SIP activities. The SIP budget is nonlapsable. An amount of Rs lakh has been allocated in the year out of which Rs lakh has been utilised upto January,2009. The SIP budget is divided into two broad categories according to nature of activities viz. works of a continuing nature relating to Social Development Programmes for example primary and non-primary education, Primary Health Programme, Health Awareness and Family Welfare Programmes in conjunction with the points of the National Rural Health Mission Programme of the Govt. of India, imparting of vocational training and assistance with development of income generating schemes, Development of Agriculture and Non Farming Activities through field demonstrations and training, Promotion of sports and culture among the local rural youth, Social Forestry and Fishery Development Programmes etc. The other major head of expenditure for SIP activities is the creation of need based infrastructure programmes aimed at benefiting a number of people in the project area for example construction of roads ( WBM, PCC etc.), drinking water wells, creation of irrigation wells and check dams, installation of hand pumps, digging of ponds and their renovation, construction of bathing and burning ghats, construction of schools/colleges, boundary walls, community centre, primary health centres, toilets/urinals, passenger shelters etc. Recent Initiatives : 1. Among the notable initiatives during the year has been the launch of the Medical Health Card for children aged between 0-5 years for the purpose of monitoring their general health and immunization schedule. 2. Allocation of 0.5% of the previous year s Net profit for SIP activities in areas which are outside the 10 km. periphery of the projects but within the Valley area. 3. Formation of 103 number of women SHG s having a corpus fund of Rs.7,18,768/-. They are now on way to becoming economically independent. This is a huge step towards women s empowerment. e) WELFARE OF DVC EMPLOYEES In every project of DVC, there is a Labour & Welfare Officer

193 and also a Welfare Centre wherefrom Books, Journals, Daily Newspapers, Sports Materials etc. are provided. Complaint Committees constituted to combat the evils of sexual harassment of women at workplace are functioning in the projects of DVC as well as at Head Quarters. The general well being of the employees is looked after by the respective Labour & Welfare Officer posted at the project. Factory Canteen is also maintained by DVC in every project where subsidized food is supplied to the workers. f) WELFARE OF MINORITIES The programmes and facilities applicable to SC/ST and OBC are as well equally extended to the minority communities residing in the adjacent villages. The facilities for pursuing their cultural and literary interests are also provided to them. More so, the Projects around which Minority Community people are in large number, Urdu MAJLIS has been set up, aided and maintained by DVC which cater to the cultural need of Minority Community. g) RIGHT TO INFORMATION ACT Right to Information Act, 2005 has been enacted in In accordance with the Right to Information Act, 2005, DVC have taken necessary steps to implement the Act. There is a Central Public Information Officer (CPIO) in DVC Headquarters and nine Public Information Officers (PIO) in DVC for its Headquarters and major projects. All applications received are dealt with due importance by the respective PIOs. Moreover, the CPIO and PIO posted at Headquarters extend all necessary support in this regard. Apart from this, continuous monitoring is done from the Headquarters on the application of RTI at different projects of DVC. In case the applicant does not receive a decision within the specified time or is aggrieved by a decision of the PIO, he/she may within thirty days from the receipt of such a decision prefer an appeal to the Appellate Authority of DVC for redressal of grievance. For more details, any one can access to DVC s website at 187

194 CHAPTER BHAKRA BEAS MANAGEMENT BOARD Bhakra Management Board (BMB) was constituted under Section 79 of the Punjab Re-Organisation Act, 1966 for the administration, maintenance and operation of Bhakra Nangal Project with effect from Ist October, The Beas Project Works, on completion, were transferred by the Government of India from Beas Construction Board (BCB) to BMB as per Section 80 of the Act and Bhakra Management Board was renamed as Bhakra Beas Management Board (BBMB) with effect from FUNCTIONS Bhakra Beas Management Board is responsible for the administration, operation and maintenance of Bhakra Nangal Project, Beas Satluj Link Project and Pong Dam including Power Houses and a network of transmission lines and grid sub-stations. The functions of Bhakra Beas Management Board are: - To regulate the supply of waters from Bhakra- Nangal and Beas projects to the states of Punjab, Haryana and Rajasthan. - To regulate supply of power generated at the Bhakra- Beas Power Houses to power utilities incharge of distribution of power in the participating States Keeping in view the technical expertise available with BBMB, the Government of India, through a notification in April, 1999 has also entrusted additional functions to Bhakra Beas Management Board, of providing and performing engineering and related technical and consultancy services in various fields of Hydro Electric Power and Irrigation Projects and to carry on all kinds of business related thereto either independently or as a joint venture with any Central/State/ Public Sector Undertaking(s) or Establishment(s) under the administrative control of Ministry of Power or as a joint venture with any other agency/organization with the approval of Government of India. The works being managed by BBMB are broadly grouped as three large multipurpose projects viz. Bhakra Nangal Project, Beas Project Unit-I (BSL Project) and Beas Project Unit-II (Pong Dam). The Bhakra Nangal project comprises the Bhakra Dam, Bhakra Left Bank & Bhakra Right Bank Power Houses, Nangal Dam, Nangal Hydel Channel Ganguwal & Kotla Power Houses and associated transmission system. Bhakra Dam is a majestic monument across the river Satluj. It is a high straight gravity concrete Dam rising metres above the deepest foundation and spanning the gorge with metre length at the top. The Gobind Sagar Lake created by the Dam has square kilometer area and a gross storage capacity of 9621 million cubic metres. The two power houses, one on the Left Bank and the other on the Right Bank, have a combined installed capacity of 1325 mega watt. The Ganguwal and Kotla Power Houses fed from Nangal Hydel Channel have an installed capacity of mega watt. The Beas Project Unit I (BSL Project) diverts Beas Water into the Satluj Basin, falling from a height of 320 metres and generating power at Dehar Power House having an installed capacity of 990 mega watt. This project comprises a diversion dam at Pandoh, 13.1 kilometre long Pandoh Baggi Tunnel, 11.8 kilometre long Sundernagar Hydel Channel, Balancing Reservoir at Sundernagar, kilometre long Sundernagar Satluj Tunnel, 125 metre High Surge Shaft and Dehar Power House. The Beas Dam at Pong is earthfill (earth core, gravel shell) Dam metre high with a gross storage capacity of 8570 million cubic metres. The Pong Power House (6x66 = 396 mega watt) is located in the stilling basin downstream of penstock tunnels. The total installed generating capacity of the BBMB Power Houses is Mega Watt as detailed under :- Power House Installed Capacity Mega Watt Bhakra (Right Bank) 5x Bhakra (Left Bank) 5x Ganguwal 1x x Kotla 1x x Dehar 6x Pong 6x

195 Dehar Power Plant and Bye-Pass Chute GENERATION AND TRANSMISSION SYSTEM During the current year , the generation from BBMB Power Houses has been Million Units against the target of Million Units fixed by the Central Electricity Authority, Government of India. The Power House-wise plant availability of BBMB power Houses for the year has been Bhakra Left Bank-99.96%, Bhakra Right Bank 99.93%, Ganguwal 78.32%, Kotla 93.01%, Dehar 84.48% and Pong 99.49%. The Power generation at BBMB Power houses is being evacuated through BBMB Power evacuation system running into 3705 circuit km length of 400, 220, 132 and 66 Kilo Volts transmission lines and 24 sub-stations. The Bhakra Beas Management Board power evacuation system operates in an integrated manner in the Northern Grid with its transmission network spreading over the States of Himachal Pradesh, Punjab, Haryana and Delhi. The system is interconnected with transmission system of PGCIL and the States of Uttar Pradesh, Rajasthan and Delhi. The availability of transmission system during the year has been 99.32%. IRRIGATION At the time of partition of India, about 80% of the irrigated area of Punjab went to West Pakistan leaving India with very meagre irrigation resources. The mighty Bhakra- Nangal and Beas Projects changed the scenario and turned Northern India into Granary of the Nation. The Bhakra Nangal and Beas Projects have not only brought Green Revolution in the States of Punjab, Haryana and Rajasthan, but also White Revolution by way of record production of milk. The States of Punjab, Haryana and Rajasthan are being supplied on an average about 28 millon acre feet of water every year which irrigates 125 lac acres of land. RENOVATION, MODERNISATION AND UPRATING (RM&U) The Renovation, Modernization and Uprating of two units each of Ganguwal and Kotla Power Houses, in addition to six units of Pong Power House (60 to 66 MW), has already been completed in year The contract for renovation, modernization and uprating of Bhakra Left Bank Power House machines (5x108 mega watt) in operation for the last about years has already been signed with M/S Sumitomo Corp. Japan (Consortium). Under this R, M &U, all the five units shall be uprated from 108 MW to 126 MW, adding a generation capacity of 90 MW and million units per annum. The work shall be carried out in XI and XIIth plan and shall be completed by November, The work of Renovation, Moderation and Uprating of Unit 189

196 No.1 of each of Ganguwal and Kotla Power Houses has been completed and these units have been commissioned on and With the completion of these works, the derated capacity of the machines has been uprated by 4.43 MW which shall result in additional annual generation of 36 million units. During renovation, replacement of major components like runner, governor, stator, unit transformer and other associated equipment has been done. UPKEEP OF DAMS AND HYDEL CHANNELS The upkeep of Dams and Hydel Channels by Bhakra Beas Management Board has been of high standards, which are considered benchmarks for other hydro projects in the region. Monitoring of the health and behaviour of dams with the help of instruments installed in and around the body of dams has shown normal behaviour. Underwater inspections of Dams also do not indicate any abnormality. Nangal Hydel Channel is running continuously since its year of commissioning i.e Inspection, repair and maintenance of Nangal Hydel Channel are being carried out online without any closure. Sand grouting of lining is done regularly and underwater repairs are done with the help of divers. This has not only helped in maintaining an uninterrupted supply of water to the Partner States but has also helped in continuous operation of Ganguwal and Kotla powerhouses for more than 50 years. ENVIRONMENT MANAGEMENT PLAN PLANTATION PROGRAMME BBMB had chalked out a programme to plant trees and shrubs on vacant land at all the Project Stations every year. During the year , plants & shrubs has been planted. At Talwara, a Green Land Project has been started on 40 acre plot in which different varieties of plants are being grown in a phased manner. JATROPHA PLANTATION BBMB has surplus land in Talwara Complex which was acquired during the construction of Beas Dam Project. After construction of the project, approximately 800 acres of surplus land is available at Talwara out of which 750 acres is fit for plantation purposes. To avoid encroachment by the local people on this surplus land, BBMB has made an extensive plan to plant Jatropha plants in this land. In this regard, the Energy & Resources Institute (TERI) has submitted a comprehensive proposal for providing consultancy for Jatropha Plantation and as per this report, cultivation of 4,95,000 no. of Jatropha plants can be carried out in about 300 hectare (750 acres) land surplus and available at Talwara. During the year , 3.80 lac Jatropha plants have been planted. The Jatropha plantation on surplus land at Talwara would supplement bio-diesel programme in India. The bio-mass based renewable sources of energy, like biodiesel from Jatropha seeds, when produced in an efficient and sustainable manner, have various environmental and social benefits. This programme is covered under Clean Development Mechanism (CDM) under Kyoto Protocol and also gives CDM credits to the organizations doing Jatropha plantation. ENVIRONMENTAL MANAGEMENT PLAN (EMP) FOR BEAS SATLUJ LINK PROJECT The Environmental Management Plan (EMP) proposed for BSL Project by the National Environmental Engineering Research Institute (NEERI), Nagpur had following two components: i) Short-Term Measures: These were the mitigation measures for the benefit of the general public like organized promotion of fish production in Suketi Khad & its tributaries, one-time farm management in silt affected agriculture-land, tarring of road along one side of Sundernagar Hydel Channel, improvement of crossover bridges on Suketi Khad, plantation at Baggi Control Works (BCW) and along Sundernagar Hydel Channel, provision of cattle-troughs along Suketi Khad, etc. Out of these measures, some were required to be completed exclusively by BBMB and others were to be completed by the H.P.Govt. Deptts. after getting their proposals vetted/financed by BBMB. Status: The Short Term measures, which were directly under the control of BBMB, were completed even before onset of monsoon The measures completed were - improvement & modification of 22 no. cross-over bridges of modified design, metalling & tarring of road along one side of Sundernagar Hydel Channel and tree plantation along Sundernagar Hydel Channel and BCW. The project of development of fisheries in Suketi Khad and its tributaries costing Rs. 72 lacs was approved by BBMB and an amount of Rs. 36 lacs as Ist Installment was released to Fisheries Deptt of HP in October, The Fisheries Deptt. has executed the Ist phase of the project. The second instalment of 36 lac has been released in Dec For one-time farm management, the Agriculture Deptt. of HP, after detailed surveys/studies, informed the State Level Steering Committee for BSL Project, under the chairmanship of Principal Secretary (ST&E), Govt. of HP, that this recommendation of NEERI is not techno-economically feasible and practicable. The Committee, thus, decided that the compensation of damages to the affected crops only as per the practice already in vogue, may be continued. The Animal Husbandry Deptt. of HP has withdrawn the proposal of making provisions of cattle troughs for animals along Suketi Khad corridor, as the dredging activity has been restricted only to monsoon season and silt free clear water is available for drinking purpose of animals in Suketi Khad during lean season. 190

197 ii) Long-term measures The long-term measures suggested by NEERI were to reduce the silt load at Pandoh Dam and for disposal of silt from Balancing Reservoir, Sundernagar. The Central Pollution Control Board, in consultation with Ministry of Environment & Forest, constituted an Expert Committee in pursuance of the directions of Hon ble HP High Court, Shimla in 2004, for preparing an action plan for management of silt and advise on other relevant issues with respect to BSL Project. The Expert Committee, after detailed studies for about a year, submitted its final report in the Hon ble HP High Court, Shimla on , in which an Action Plan has been proposed for monsoon seasons for BSL Project for next 3 to 5 years. The Hon ble HP High Court has asked BBMB to implement the Action Plan for 5 years for which monitoring would be done by the Expert Committee. During the year , BBMB has enhanced the dredging capacity by commissioning the 3rd dredger. The dredging is being done during the monsoon period as per recommendations of the Expert Committee, Bhakra Beas Management Board has implemented the Action Plan proposed as above during the monsoon season of 2008 and its implementation report is to be submitted to the Expert Committee. MINIMUM FLOW IN RIVERS BEAS In respect of minimum flow from Pandoh dam, BBMB has been following Environmental Management Plan (EMP) prepared by NEERI. In the EMP, NEERI had recommended to maintain a minimum daily inflow in river Beas at Mandi Town to not less than 5% of minimum daily flow upstream of Pandoh Dam. It was also recommended that after accounting for all the Khads/rivers/rivulets confluencing with river Beas in the reach between Pandoh dam and Mandi and flowing under normal present condition, the shortfall, if any, may be made up by release of water from Pandoh dam. However, so far, occasion has not arisen when water had to be released from Pandoh Dam downstream at the cost of power generation at DPH as the contributions from rivers/rivulets downstream the dam were adequate to meet the stipulated requirement of 5% of minimum daily inflows at Mandi Town. The Himachal Pradesh Govt. vide Notification No. PC-F(2)- 1/2005 dated and revised Notification No.. PC- F(2)-1/2005 dated has ordered to release the minimum flow downstream of Diversion Dams throughout the year at a threshold value of not less than 15% of the minimum inflow observed in the lean season into main river body whose water is being harnessed by such projects. Accordingly BBMB has started releasing the minimum stipulated flow as desired vide above said notifications from Pandoh dam from September, CONSULTANCY SERVICES In an endeavour to synergise, the existing potential of BBMB to boost the interest of its Partner States, BBMB Consultancy Services were introduced. The following works were carried out by Consultancy Services of BBMB during the year Host Country approval has been accorded by MoE&F. PDD was hosted on the website of UNFCCC for global comments which have been received. Reply to the various issues raised by M/s DNV in their Draft Validation Report has been prepared in consultation with World Bank. Accordingly, the PDD has also been revised by World Bank and acceptance by Validator is awaited. Subsequently, the registration process shall be initiated with UNFCC. Emission Reduction Purchase Agreement (EPRA) will be executed with World Bank simultaneously. Technical Audit was carried out during the period April- May, 2008 at all the BBMB Power Houses. Action taken reports concerning Technical Audit of various PHs of BBMB is being consolidated regularly on monthly basis. BBMB was entrusted with the work for organizing school and state level painting competition on behalf Bureau of Energy Efficiency (BEE) under Ministry of Power, Govt. of India for the students of 4th & 5th standard of States of Punjab, Haryana & UT Chandigarh. State Level Painting Competition was organized by BBMB on 14th November 2008 at Panjab University Law Auditorium, Sector-14, Chandigarh as per guidelines of Bureau of Energy Efficiency (BEE) under Ministry of Power, Govt. of India. Participation of schools of States/UT are as under:- State/UT No. of Schools No. of participants Punjab Haryana Chandigarh Turnkey work concerning 66KV Sub-station, PGIMER, Chandigarh was completed and Sub-station was inaugurated by Secretary Power, GOI in December, Turnky work of executing 66KV Substation,Sector-56, Chandigarh and LILO of one circuit of existing 66 KV Double Circuit Mohali, Sector-56, Chandigarh and other works of UT Elect. Deptt. Chandigarh are in progress. Provided expert services for Thermovison Scanning, Hotline Maintenance, Checking of Protection Schemes and Stretch testing of Hydrogen Gas Cylinders to Power Utilities of Haryana, Delhi, Punjab and UT Chandigarh. Organising a Competent Workforce: The Operation and Maintenance personnel in BBMB are a 191

198 Machine Hall of Bhakra Power House highly motivated workforce who are generally satisfied with wages, benefits and lifestyle. BBMB has given thrust to the training of its personnel for continually improving their competencies and efficiency to support safe, reliable and cost effective operation. BBMB has framed and adopted a Training Policy in line with Ministry of Power s training policy in its Board meeting held on Massive training programmes through Interactive Workshops/Seminars at all the Project Stations under the concerned Chief Engineers as well as in the Board Secretariat, both for workers and officerson Technical, Management, Motivational, Legal, Health and Financial matters have been taken up. Services of the serving experts, retired BBMB personnel and experts from other organizations, including manufacturers of equipment etc. have also been gainfully utilized. In addition to this, Institutional Training Programmes are being conducted by reputed Institutes/Firms/ Organizations. In the year , In-house lectures were arranged for 1845 executives and 6819 non-executives covering overall mandays of training. In addition to the In-house programmes, 208 Executives and 218 Non-executives were provided training in the Institutional Training Programmes covering 3642 mandays of training. Thus, a total of man-days of training were imparted during the year BBMB has created its own infrastructure for imparting training to its employees. A Lecture Hall at SLDC Complex, Chandigarh to arrange In-house Lectures / Workshops / Seminars has been established in the year A Training Centre with the name Bhakra Beas Training Centre has started working at Nangal from March The Training Centre has a Lecture Hall with all the latest learningaids, two different model-rooms for Irrigation and Power Wings and a discussion room to impart institutional training to the power sector engineers and technicians of BBMB & other power utilities. Training programme on DRUM has been started at this centre since and every month a training on DRUM is being imparted in which the engineers from the Partner States/Utilities are also participating. The cost of this training is being borne by MOP through PFC. 192

199 CHAPTER BUREAU OF ENERGY EFFICIENCY The Government of India has enacted the Energy Conservation Act 2001, and for implementing various provisions in the EC Act, Bureau of Energy Efficiency (BEE) was operationalised from 1st March The EC Act provides a legal framework for energy efficiency initiatives in the country. The Act has mandatory and promotional in initiatives which broadly relates to Designated Consumers, Standards and Labeling programme for equipment and appliances and Energy Conservation Building Codes (ECBC) for new commercial buildings. The Bureau is spearheading the task of improving the energy efficiency in various sectors of the economy through regulatory and promotional mechanism. Bureau of Energy Efficiency co-ordinates with designated consumers, designated agencies and other organizations recognize, identify and utilize the existing resources and infrastructure, in performing the functions assigned to it under the EC Act. Mission of BEE The Mission of Bureau of Energy Efficiency (BEE) is to develop policy and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act (EC Act), 2001 with the primary objective of reducing energy intensity of the Indian economy. This will be achieved with active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors. Objectives and Strategies The primary objective of BEE is to reduce energy intensity in the Indian economy. In order to translate the objectives into result-oriented action the broad strategies of BEE include: To coordinate policies and programmes on efficient use of energy and its conservation with the involvement of stakeholders To plan, manage and implement energy conservation programmes as envisaged in the EC Act To assume leadership and provide policy framework and direction to national energy efficiency and conservation efforts and programmes To demonstrate energy efficiency delivery mechanisms, as envisaged in the EC Act, through private-public partnership To establish systems and procedures to measure, monitor and verify energy efficiency results in individual sectors as well as at the national level. To leverage multi-lateral, bi-lateral and private sector support in implementation of programmes and projects on efficient use of energy and its conservation. Functions of BEE BEE co-ordinates with designated consumers, designated agencies and other organizations; recognizes, identifies and utilizes the existing resources and infrastructure, in performing the functions assigned to it under the EC Act. The EC Act provides for regulatory and promotional functions. Regulatory functions The major regulatory functions of BEE include: Develop minimum energy consumption standards and labelling for equipment and appliances Develop specific energy conservation building codes Activities focusing on designated consumers Develop energy consumption norms Certify energy managers and energy auditors Accreditation of energy auditors Define the manner and periodicity of mandatory energy audits Develop reporting formats on energy consumption and action taken on the recommendations of the energy auditors Promotional functions The major promotional functions of BEE include: Create awareness and disseminate information on energy efficiency and conservation Arrange and organize training of personnel and specialists in the techniques for efficient use of energy and its conservation Strengthen consultancy services Promote research and development Develop testing and certification procedures and promote testing facilities Formulate and facilitate implementation of pilot projects and demonstration projects Promote use of energy efficient processes, equipment, devices and systems Take steps to encourage preferential treatment for use 193

200 Sh. Sushilkumar Shinde, Minister of Power at National Launch of Energy Conservation Building Code (ECBC) of energy efficient equipment or appliances Promote innovative financing of energy efficiency projects Give financial assistance to institutions for promoting efficient use of energy and its conservation Prepare educational curriculum on effi cient use of energy and its conservation. Implement international co-operation programmes relating to efficient use of energy and its conservation. PROJECTS AND PROGRAMMES Bureau of Energy Efficiency has already launched the following voluntary and mandatory schemes for promoting Energy Efficiency in India during XI Plan, the details of which have been given in Chapter 9 relating to Energy Conservation: 1. Bachat Lamp Yojana (BLY) Scheme 2. Standards and Labelling 3. Energy Conservation Building Codes 4. Assistance on ECBC to different projects 5. Energy Efficiency in Existing Buildings 6. Accreditation of ESCOs 7. Agricultural (Ag DSM) and Municipal (Mu DSM) Demand Side Management (DSM) Scheme 8. Strengthening Institutional Capacity of SDAs Scheme 9. Contribution to State Energy Conservation Fund (SECF) Scheme 10. National Energy Conservation Awards, Painting Competition on Energy Conservation, 2008 Verifiable Savings: 1. The Standards and Labelling (S&L) Programme have resulted in electricity saving of Million units, equivalent to avoided capacity generation of MW. 2. The National Energy Conservation Award Programme has resulted in electricity saving of Million units, equivalent to avoided capacity generation of 236 MW. Apart from this, these programmes were able to reduce 2,205,623 MTOE of thermal energy. 3. The Energy Conservation & Demand Side Management (DSM) programmes at state level have resulted in electricity saving of 693 Million units, equivalent to avoided capacity generation of MW. Apart from this, these programmes were able to reduce MTOE of thermal energy. 194

201 CHAPTER Central Power Research Institute An autonomous Registered Society under the Ministry of Power, the Central Power Research Institute (CPRI) undertakes applied research in electric power engineering besides functioning as an independent Testing and Certification Authority for electrical equipment and components to ensure reliability and improve, innovate and develop new products. The laboratories are located at Bangalore, Bhopal, Hyderabad, Noida, Nagpur, Kolkota and Guwahati. New Test Facility Created Balance Ambient Calorimeter test facility to test Air Conditioners has been established which would help to label the room Air Conditioners under the BEE (Bureau of Energy Efficiency) labeling programme. Diagnostic Tests The following diagnostic tests were carried out on High Voltage(HV) equipments, Hydro Generators, Generator Transformers, Current Transformers(CT s) and Circuit Breakers at NHPC, Rangit Hydel Power Station, Sikkim. Power Transformers at National Aluminium Company at Angul, Orissa. HV Power Plant and Sub-station equipment for M/s.Andhra Pradesh Generation Company (APGENCO), Machkund Hydro Electric Power Station, Machkund, A.P. HV equipments for M/s. Zuari Industries Ltd. HV equipments like HT Motors, Cables, Power Transformers etc. at M/s. Zuari Industries Ltd., Goa. Condition Monitoring Tests Condition Monitoring Tests were carried out on 125 MVA generator transformers at APGENCO, Paloncha site. Transformers at Kothagundam Thermal Power Station, Polancha, A.P. Generator Transformers at Karnataka Power Corporation Ltd(KPCL), Supa Dam Power House. Power Transformers and Current Transformers at Jawaharlal Nehru Port Trust, Navi Mumbai. Turbo Generator &Transformers at Nuclear Power Corporation(NPCL), Tarapur Atomic Power Station, Tarapur, Maharashtra. Turbo Generator, HV Motors, Power Transformers, Potential Transformer's & Bus Insulation of M/s. Zuari Industries, Goa. 220 kv oil filled cable for Himachal Pradesh State Electricity Board at Bawanagar. Design Validation/Special Design, Tower Testing Design of 400 / 220kV DG type Multi circuit towers was done for M/s. TATA Power Co. Ltd., Mumbai. Design checking / approval of 400 kv D/C, Double Circuit B (DB) type and Double Circuit D (DD) type towers for M/s. Unitech Power Transmission Ltd., Gurgaon. Design approval of 400 kv D/C, DD type tower with 24m body extension for M/s. L&T Ltd., Chennai. Power Systems Studies Power Systems measurement Studies were completed at Gudepanchagni Sub Stations of Maharashtra State Electricity Board and Brahmanvel Sub-station of M/s. Vestas Wind Technology India Pvt. Ltd., Chennai. Power system studies and power quality measurements were carried out for M/s. GMR, at Rajiv Gandhi International Airport, Hyderabad. Power System studies for Karnataka Thermal Power Corporation Ltd. Raichur. Power System studies were carried out for Delhi Transco Ltd., New Delhi. Sub Synchronous Resonance (SSR) studies were carried out for M/s. Siemens Ltd, Navi Mumbai. Basic load flow and short circuit studies were carried out for M/s. Reliance India Ltd, Hazira. Energy Audit Studies were carried out for National Hydro Electric Power Corporation, Chamera and Uri. National Thermal Power Corporation, Badarpur. Uttar Pradesh Rajya Vidyut Nigam Ltd & Centre for Earth Science Studies ( CESS). Maharashtra State Electricity Regulatory Commission, at Koradi. 195

202 The arrangement of the total set up with bundle conductor along with insulator string and tower window simulation for air insulation study Field services carried out at Thermal Power Stations Remaining Life Assessment (RLA) study was carried out on Turbo Generator Rotor of Damodar Valley Corporation, Chandrapur, Jharkhand. RLA Study was carried out for Boiler pressure Parts of 140 MW for Unit-1 of Nasik Thermal Power Station, Nasik. RLA Study was carried out for 5 x 62.5 MW Boiler of Unit-3 for Satpur TPS, Sarni. RLA study was carried out for 62.5 MW of Unit-1 for Bhusawal Thermal Power Station, Bhusawal. Consultancy Assignments-Abroad Consultancy work was carried out for Cable joints, Terminations and current transformers for M/s. Middle East Meter Factory, Saudi Arabia. On-site testing of transformers was carried out for M/s. Dubai Electricity & Water Authority, Dubai, UAE. Third party inspection was carried out for 145kV, 40kA Gas Insulated Switchgear system for M/s. Hyundai Heavy Industries, Ulsan, Korea. ASTA Certification and Intertek ASTA-BEAB Certificate for testing of panels were carried out for M/s. Gulf Switchgear, Dubai, UAE. Pre-commissioning tests on 50 MVA ID transformers and 50 MVA earthing transformer were carried out for Jabel Ali, Dubai Electricity & Water authority (DEWA), Dubai. CAPITAL PROJECTS 1. National/International accreditation for CPRI laboratories CPRI has obtained accreditation from NABL(INDIA), INTERTEK ASTA BEAB UK. CPRI laboratories have been accredited by Association of Short-Circuit Testing Authorities (ASTA), British Electro technical Approvals Board(BEAB), UK for testing of low Voltage and Medium Voltage (LV & MV) equipment. CPRI is having its own Observers for witnessing the testing under ASTA certification Scheme at CPRI laboratories. The project was completed in March Augmentation & Modernization of CPRI Laboratories Laboratories such as High Voltage, Short Circuit, High Power, Di-electric Materials and Mechanical Engineering Laboratory have been augmented. Modernisation of CPRI laboratories under rejuvenation programme involving activities such as interior works, additions and alteration under civil works have been carried out and completed. 3. Relocation of Regional Testing Laboratory( RTL) Muradnagar, to Noida To cater to the Northern Indian utilities, the Regional Testing 196

203 Laboratory was started in 1992 at Muradnagar (near Ghaziabad) UP. The RTL unit is now being shifted to NOIDA to provide better service to the utilities. To facilitate the shifting, the NOIDA authorities have allotted land at Sector- 62, Noida. The civil works for the laboratory and office building are complete and shifting of the Laboratories from Muradnagar to Noida is in progress. 4. Development of a Centre of Excellence for simulation of power system and failure analysis The limitations existing in the present Real Time Digital Simulation (RTDS) is being overcome by enhancing capabilities in terms of 3 phase buses, single phase switches, protection schemes, High Voltage Direct Current (HVDC) bipolar lines, interfacing cards etc. RTDS racks and associated components were procured and commissioned. The project has been completed in January Advanced training for CPRI Officers at M/s Winnipeg, Canada has been completed. 5. Refurbishment of 1500 MVA Short-Circuit Generator The rotor has been refurbished with new insulation, wedges and suitable packers for 1500 MVA short circuit generator. Marketing and Publicity The Institute participated in India International Trade Fair(IITF) held at Pragati Maidan from 14th to 27th November The Institute participated in the Middle East Electricity Expo 8-10, February 2009 at UAE. RESEARCH ACTIVITIES The Central Power Research Institute (CPRI), takes up R&D programmes keeping abreast with the latest technological developments in the areas of Generation, Transmission & Distribution of Power. Some of these programmes are sponsored by the public sector undertakings & Industries. Under Research Contingency (RC), the CPRI in-house researchers have completed 14 research projects. RESTRUCTURED ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME (APDRP) CPRI has also taken up the third party supervision and quality monitoring of RGGVY schemes for Chamarajnagar, Kodugu and Gulbarga Districts in Karnataka and Idukki in Kerala. This will help to ascertain the quality aspects of the rural distribution, which aims to provide electricity to the rural area. CPRI has been appointed as consultant for loss evaluation, Energy accounting and Energy audit of eight 11kV feeders under the BESCOM, Karnataka. PATENTS AND TECHNOLOGY TRANSFER Patents filed: Sl.No Name of the Patent Application 1 Intelligent Air Conditioner Controller 2 Hot Blended Waste Particulate Fillers with Inorganic Catalyzed Disperse Phase 3 Multilayer Nanomullite Alumina Coatings for Wear and Erosion Resistance Applications 4 Silica Rich Soil Nutrient Support Material obtained through Dry Ash Beneficiation 5 Ash Micro-Spheres Based Thermal Insulation Refractory Technology Transfer: The GMAT software of CPRI is being used extensively in India by State Power Utilities for the design of grounding system in HV Substations & Power Stations. For the first time this software has been acquired by a foreign power utility viz. Bhutan Power Corporation (BPC), Bhutan. Non Plan Expenditure: The institute has been meeting its non-plan expenditure from its own revenue generated by testing and consultancy activities. DISSEMINATION OF INFORMATION The Institute has organised Nineteen Seminars/ Conferences/Workshops during the year Nine training programs have been conducted for distribution engineers of the power sector under Ministry of Power- USAID sponsored DRUM programme. 197

204 A batch of Foreign National Trainees undergoing Training on 500 MW Simulator at NPTI Corporate Office, Faridabad 198

205 CHAPTER NATIONAL POWER TRAINING INSTITUTE INTRODUCTION National Power Training Institute (NPTI), an ISO 9001 & ISO organization, was set up by the Government of India under the Ministry of Power to function as an Apex Body at the National Level for development of human resources for the power & energy sectors. Its Corporate Office is located at Faridabad (Haryana). It functions on an all India basis through its Regional Institutes located at Neyveli (Tamil Nadu), Durgapur (West Bengal), Badarpur (New Delhi), Nagpur (Maharashtra), and Guwahati (Assam). In addition, NPTI also has a Power Systems Training Institute (PSTI) & a Hot Line Training Centre (HLTC) at Bangalore (Karnataka) and a Centre for Advanced Management and Power Studies (CAMPS) at Faridabad (Haryana). To address the training requirement of hydro power sector, a specialized Hydro Power Training Centre is being set up at Nangal. HI-TECH TRAINING TOOLS NPTI has infrastructural facilities for conducting different courses on technical as well as management subjects covering the needs of thermal, hydro and nuclear power plants, transmission & distribution systems and other fields of power and allied energy sectors. MANPOWER TRAINING Several long-term and short-term training programs in the areas of Thermal, Hydro, Transmission & Distribution and Management etc. are being conducted in the various Institutes of NPTI. Besides imparting training in the areas of Thermal, Hydro and Transmission & Distribution covering nearly 10,000 power professionals of various levels annually, NPTI also conducts the following industry interfaced academic programs with the objective to create a pool of committed and competent power sector professionals equipped with appropriate technical skills:- One Year Post Graduate Diploma Course in Thermal Power Plant Engineering Four Year B.Tech./B.E Degree in Power Engineering Two Year MBA in Power Management One Year Post Diploma Course in Thermal Power Plant Engineering Six Months O&M of Transmission and Distribution System for Engineers Shri Sushilkumar Shinde, Hon ble Union Minister of Power addressing Employees and Students at NPTI Corporate Office, Faridabad on

206 Nine Months Post Graduate Diploma Course in Hydro Power Plant Engg. One Year Post Graduate Diploma in GIS and Remote Sensing TRAINING PROGRAMS FOR FOREIGN NATIONALS The following programmes were conducted:- A special on-site training program on Transmission Systems for 15 Engineers from Afghanistan from to at Kabul and from to at PSTI-Bangalore. 10 weeks training program on O&M of Gas Turbine for 05 personnel from Oman from to weeks Program on Power Plant Management for 17 personnel from various countries Kyrgyzstan, Bhutan, Thailand, Ethiopia, Cameroon, Algeria, Ghana, Dominica, Afghanistan, Botswana, Myanmar and Nigeria. CUSTOMISED TRAINING PROGRAMS The following programmes were conducted:- 26 weeks Training Program for 13th Batch of Executive Engineer Trainees (152 in two batches) of PGCIL 10 weeks Common Induction Training Program for Graduate Engineers/Supervisors of BHEL 09 weeks Training Program for 36 Engineer Trainees of SJVNL 02 weeks Advanced Management Programs for Delhi Transco Ltd. Nine Batches of 507 Graduate Engineers of Reliance Infrastructure Ltd., NOIDA attended 2 weeks training programs on Introduction to Thermal Power Plant A batch of 10 trainees of Ratnagiri Power Plant attended 02 weeks training program on Combined Cycle Gas Power Plant Simulator at NPTI Corporate Office, Faridabad. 230 Linemen of Assam State Electricity Board (ASEB) attended one week short-term training programmes in different batch at NPTI (NE-R), Guwahati. NATIONAL SEMINARS The following seminars were conducted:- National Seminar on Grid Security & Management organized by NPTI (ER), Durgapur on 11th July attended by 70 participants from different organisations. National Seminar on Condition Monitoring of Machines through Oil Analysis organised by NPTI (NE-R) Guwahati on 4th & 5th August attended by 43 senior engineers of different organisations. National Seminar on Reliability & Life Extension Techniques of Electrical Equipment in Open Access organized by NPTI (ER), Durgapur on 28th & 29th August attended by 100 participants. National Workshop on National CTC Phase out Plan Emerging Scenarios in Power Sector Industries organised on 5th Dec-2008 by NPTI (ER), Durgapur at Hotel The Park, New Delhi, attended by 200 participants from the different organisations. National Power Training Institute (Northern Region), Badarpur, New Delhi in association with Forum of Regulators conducted One Day National Seminar on Electricity Tariff in Regulatory Regime on Feb 24, 2009 at The Park Hotel, New Delhi attended by 85 delegates from different PSUs/ Power Utilities of the Power Sector in India. OTHER IMPORTANT ACTIVITIES Certificate of Competency in Power Distribution The Certificate of Competency in Power Distribution has been developed by the School of Engg. & Technology, IGNOU in collaboration with Ministry of Power, USAID-India and the Power Finance Corporation under Distrib ution Reform, Upgrades & Management (DRUM) Project. Under this Program, NPTI entered into an agreement with IGNOU to conduct/develop educational Programmes for human resources development in Power Sector for Engineers, Diploma Holders, Technicians and equivalent Workmen to improve the efficiency and ability and also to make them eligible for acquiring further knowledge, training and also to enhance their educational qualification and skill. As a first step IGNOU has launched the Certificate of competence in Power Distribution in collaboration with NPTI (at its Regional Centres at Nagpur and Durgapur) and state power utilities. CONSULTANCY SERVICES NPTI successfully completed the consultancy assignments for recruitment of personnel by Indraprastha Power Generation Co. Ltd./Pragati Power Co. Ltd. (IPGCL/PPCL) and Bihar State Electricity Board. NPTI has been engaged as consultant by M/s Advanced Engineering Associates International, Inc., USA for the Project on Human and Institutional Capacity Building for Afghanistan Energy and Natural Resources Sector awarded by USAID. M/s. AEAI & NPTI entered into MOU for undertaking the above work. A team of three Officers visited Kabul during Nov-2008 to assess the requirement. The work is in progress. NPTI has undertaken consultancy work for the Energy & Power Department, Govt. of Sikkim. The work involves study for improvement of existing Power Distribution System and preparation of comprehensive DPRs for renovation & modernization of Sub-transmission & distribution system along with proposal for new 33/11 KV Power Sub-stations, Installation of new 11/0.4 KV distribution sub-station, drawing of new HT/LT lines etc. The work is in progress. NPTI has also undertaken the work of recruitment of Junior Electrical Engineers for Electricity Department of Govt. of Daman & Diu. A draft proposal for preparation of Feasibility Report regarding setting up of 5 MW Solar Power Plant at Diu has been submitted to Govt. of Daman. 200

207 CHAPTER - 23 OTHER IMPORTANT ACTIVITIES 23.1 OFFICE OF THE CONTROLLER OF ACCOUNTS The Secretary is the Chief Accounting Authority. The office of Controller of Accounts functions under overall supervision of Joint Secretary & Financial Adviser. The office is headed by the Controller of Accounts with one Deputy Controller of Accounts/Assistant Controller of Accounts and seven working Pay & Accounts Officers responsible for making all the payments, expenditure control, Internal Audit and accounting of all the receipts/payments. Out of these one Pay and Accounts office is stationed in Bangalore and one is the in-charge of the Internal Audit Wing. The Principal Accounts Office is responsible for consolidation of monthly Accounts of all the Pay & Accounts Offices for the preparation of Appropriation Account, Statement of Central Transactions (SCT) and Finance Account on annual basis for submission to the Controller General of Accounts ( CGA ) Department of Expenditure, Ministry of Finance. It is also responsible for the compilation of various datas and generation of reports for submission to Ministry of Finance, Power, O\O C& AG and CGA etc. The Office of Controller of Accounts also brings out an annual accounting booklet called Accounts at a Glance which contains total transactions of the Ministry and its various organizations. It gives a brief overview of Accounting trends. The office of the Controller of Accounts is also responsible for preparing the Receipt Budget of the Ministry. Internal Audit Wing Performance of the Internal Audit Wing during the year is as under: The Internal Audit Wing ensures adoption of sound procedure, regularities and financial propriety of transactions of accounts. This Wing advises the DDOs and their staff for correct implementation of rules and maintenance of proper records. I.A.W. also pursues the settlement of objections raised by Statutory Audit. Year (Accounts No. of Units No. of Paras No. of Paras No. of Paras Due for audit due/inspected raised settled outstanding upto during ) / AUDIT OBSERVATIONS The Organisation-wise break up of Outstanding Audit Observations and Inspection Reports as on , for the financial year is as under: S.No. Organisation No. of Inspection No. of Paras Reports 1. Ministry of Power Central Electricity Authority BBMB, Nangal, Talwara/ 1 1 Chandigarh 4. Controller Of Accounts (1) PAO,CEA,N.Delhi 1 04 (2) PR.A.O(Admn)N.Delhi 1 14 (3) PAO,BMCC, New Delhi 1 01 (4) PAO, CEA, Bangalore 1 12 (5) PAO Sectt, New Delhi/C 1 08 Total

208 Statutory Audit Paras of MOP, PSUs etc:- As per this office records the position of pending Audit Paras is as under:- Pending with Total MOP Unit Audit COPU/ (PSUs etc) Monitoring Cell (i) Commercial Paras (ii) Civil Paras (iii) Draft Paras Total Computerisation The Office of the Controller of Accounts is generating Computerised Accounts through two packages namely COMPACT (PAO-2000) for accounts of Pay & Accounts Offices and CONTROLLER S ACCOUNTING (CONTACT- OLD ) for monthly accounts of Pr. Accounts Office. The Package named COMPACT (PAO, 2000) for Pre-check, Compilation, GPF and Pension etc. Modules) for Pay and Accounts Offices, CPFM package for New Pension Scheme and CONTACT (OLD) for Principal Accounts Office have been working properly. A Pay package has been developed using PAY-TRAN through which pay bills, pay slips and other reports are being generated POWERGRID s TRANSMISSION SYSTEM FOR DEVELOPMENT OF NORTH EASTERN REGION (NER) At present, POWERGRID has a transmission network at different voltage levels viz. 400kV, 220kV and 132kV level for dispersal of power from various central sector generating stations to different States in North-Eastern Region as well as for Export/Import of power with neighboring States/region. POWERGRID s transmission system in NER consists of around 5,000 ckt. kms. of transmission lines including 864 ckt. km. of inter-regional lines between NER & ER and 14 sub-stations. POWERGRID has already invested over Rs Crore in NER for development of transmission network. The transmission system comprises of high capacity lines viz. 400kV D/c Misa Balipara Bongaigaon Malda corridor, which is operational since early POWERGRID has already completed the execution of 132kV Ziro-Daporijo-Along transmission system and 220kV Kathalguri-Deomali transmission system on deposit work of Arunachal Pradesh. Further, execution of Balipara-Khupi- Kimi 132kV line have also been completed as a deposit work of NEEPCO. Further, 220 kv Misa Byrnihat transmission line alongwith 2x160MVA, 220/132kV substation at Byrnihat is being executed as deposit work of Meghalaya State Electricity Board. POWERGRID Board has approved NER Strengthening Scheme-I with a total cost of Rs. 60 crore. The project is scheduled to be completed by September, Transmission system for evacuation of power from future projects of about 50,000MW in NER and 15,000MW in Sikkim/Bhutan have been planned keeping in view of the fact that power from the above mentioned projects would be utilized partly in NER, Sikkim and Bhutan while major part of this power would have to be exported to power deficit regions like NR & WR. Transmission lines from these generating sources will be traversing through the narrow transmission corridor of Chicken Neck Area, in the north of West Bengal, between the international borders of Bangladesh and Nepal, having a length of about 18 km and a width of only about 22 km. Keeping in view the generation and growth of power demand in NER and Sikkim/Bhutan, the capacity of transmission system required through the chicken neck area would be of the order of 50,000 MW. As a large quantum of power is to be transferred through the limited corridor in Chicken Neck area, it is envisaged that the power transfer capacity of each of the transmission corridor should be at least MW. After detailed study of various alternatives in this regard, it is found that the hybrid system of 800kV HVDC with 400kV AC lines is the most optimal one considering the Right-of-Way requirement, transmission cost and line losses. Looking at the total power evacuation requirement through Chicken neck area, it is found that to meet the contingency & reliability needs, about 5-6 nos. of HVDC lines and 3-4 nos. of EHVAC lines would have to be established through Chicken Neck Area. Transmission system for evacuation of power from the projects to be commissioned in XI plan/early XII plan has also been developed. The power from the projects like Kameng HEP (600 MW) of NEEPCO and Lower Subansiri (2000 MW) of NHPC is proposed to be pooled to a common substation in NER for onward transmission to NR/WR via hybrid system of +800kV HVDC and 400kV AC links. In fact till date, ±600kV HVDC is the highest operating voltage in world. India is one of the few countries considering adoption of ±800 kv HVDC for transfer of bulk power over long 202

209 distance. For evacuation of power from Gas Based Power Project in Tripura (740 MW) project and Bongaigaon TPS (750MW), separate transmission corridor has been planned. In addition to this, as decided in the meeting held between Hon ble Minister of Power with Hon ble Minister of Development of North Eastern Region on April 19, 2007, a comprehensive scheme for strengthening of transmission system in North Eastern region has been evolved in consultation with Central Electricity Authority and representatives of all concerned States. Under this scheme, the transmission and sub-transmission system for NER States are planned in two parts viz. intra-state and inter- State lines. The scheme has been evolved keeping in view the long term requirement of NER so as to ensure secure and reliable supply of power and cater to the load growth for more than 10 years. A pre feasibility report on the same has already been submitted. Private Sector Participation in Transmission POWERGRID did it bit and has been successful in facilitating private investment in transmission sector. POWERGRID s first Joint Venture project, Transmission System associated with Tala Hydroelectric Project, East-North Inter-connector and Northern India Transmission System, with M/s. Tata Power is under successful operation since August, Based on the success achieved, the Company has established six more Joint Ventures (JVs) namely, M/s Parbati-Koldam Transmission Company Limited, M/s Torrent POWERGRID Limited, M/s Jaypee POWERGRID Limited, POWERGRID IL&FS Transmission Company Pvt. Limited, M/s Teesta Valley Power Transmission Company Limited and North East Transmission Company Limited. Besides, POWERGRID has also facilitated formation of Independent Private Transmission Company (IPTC), 100% owned by private sector, for implementation of part of transmission lines under Western Region Strengthening Scheme -II through international tariff based competitive bidding process in line with CERC directive GRIEVANCE REDRESSAL Ministry of Power Centralised Public Grievances Redressal and Monitoring System (CPGRAMS) An online system for handling Public Grievances was implemented in the Ministry. The Grievances Cell staff was trained on the application and data entry for all the grievances has been ensured. In the year 2007, Deptt. of Administrative Reforms and Public Grievance (DARPG) with technical support from National Informatics Center (NIC) has developed a revised version of the Public Grievance Redress & Monitoring System (PGRAMS) and has launched Centralized Public Grievance Redress & Monitoring System (CPGRAMS) for prompt and effective redressal of grievances of the citizens. The system is a single window grievance portal for the Ministries/ Departments/Organizations to record and receive the grievances on line and redress them indicating actions at different levels. The portal also facilitates receipt of the grievances lodged online through internet by the citizens from any geographical location. The Grievance Cell staff has attended the Training on the application and data entry. Login and ID Passwords have been created for Ministry of Power as well as its organizations viz. PSUs and Autonomous bodies. The system has been made functional with the technical support of NIC officials of the Ministry. CEA Grievances Cell To redress the grievances of CEA Head Quarter, in accordance with the instructions of Deptt. of Administrative Reforms and Public Grievances, Shri S. K. Thakral, Chief Engineer (Electrical Inspectorate Division), is continuing as Director (Grievances).No grievance case has been received and settled from Jan 08 to March 08 and 4 Nos. of cases were under process during this period received before Nos. of grievance cases have been received and 3 Nos. of grievance cases have been settled from April 08 to March 09 and 9 Nos of Grievance cases are under process as on 31st March NTPC Ltd. Grievance Redressal Mechanism in NTPC NTPC has a public grievance redressal mechanism in place for dealing with grievances of public at large. The Company Secretariat Department is the nodal point for redressal of Public Grievances and the Company Secretary has been designated as Director (Grievances) for the Corporation. Grievance Officers have also been appointed in all Projects/ Regional Offices. Grievances received from the public are being processed as per guidelines issued by Department of Administrative Reforms and Public Grievances and a monthly report is furnished regularly to the Department. Grievances from employees are being dealt as per staff grievance procedure framed in this regard. NHPC Ltd. Grievances Cell NHPC has its own internal Grievance Redressal Machinery for expeditious Redressal of grievances of the general public as well as its own employees. The functioning of the machinery is monitored periodically to ensure efficacy of the system. The Grievance Redressal Machinery is given extensive 203

210 publicity among the employees and members of the public and all possible efforts are made to ensure expeditious Redressal of the grievances as and when received. A monthly and quarterly report / return on Redressal of public grievances are being sent regularly to the Ministry of Power. PFC Public Grievance PFC has a Grievance Redressal System for dealing with grievances of the employees and the public at large. The systems are duly notified and the Nodal Officers ensure quick redressal of grievances within the permissible time frame. PFC has also notified Citizen s Charter to ensure transparency in its work activities. The Charter is available on the website of PFC to facilitate easy access. NEEPCO Grievance Redressal Mechanism NEEPCO has a laid down grievance procedure to redress and settle the grievance expeditiously and nearer to its point of origin, so that a cordial and healthy industrial relation is maintained in the Corporation. In addition, NEEPCO has installed the Public Grievance Redressal and Monitoring System (PGRAMS) software in its Corporate Office to deal with grievances with public at large. SATLUJ JAL VIDYUT NIGAM LIMITED Public Grievance/RTI SJVN have already complied with the requirements of section 4.1(b) of Right to Information Act-2005 through various disclosures about the Organization and has already been made public and are available on our web site In addition to this following documents are also available on our web site: a) The Annual Reports. b) Delegation of Powers. c) HR Manual. d) Code of Conduct. Beside the above, for proper and efficient dissemination of information, we have nominated/ designated Public Information Officers for Corporate Office as well as for projects of our organization within India. It is pertinent to mention that almost all the applications received under the Right to Information Act-2005 are responded / disposed of within prescribed time limits under the Act. BEE Public Grievance There is no separate Grievance Redressal Cell in Bureau of Energy Efficiency. Grievances, if any, are being dealt by the Administration Section of BEE. During the period there were no grievance cases. 204 Central Power Research Institute The grievance cell has been active and is available for representing any grievance faced by the employees of the institute. RIGHT TO INFORMATION ACT, 2005 Right to Information Act Ministry of Power RTI-MIS is an online web enabled System for on-line processing/monitoring of Requests and Appeals received from citizens by the concerned Public Authority. The RTI- MIS has been implemented in the Ministry of Power. Annual Report for the year has been posted on RTI Annual Return Information System. CEA Right to Information Under the Right to Information Act, Shri S. K. Thakral, Chief Engineer has been entrusted the work of Central Public Information Officer of CEA. Under the Act, during the period from Jan 08 to March 08, 21 Nos. of requests/ applications have been received and 17 Nos. been decided including 3 Nos. of cases received before this period and 7 nos. of cases were under process as on 31st March During the period from April, 08 to March 09, 90 Nos. of requests/ applications have been received and 93 Nos. been decided including 7 Nos. of cases received before this period and 4 Nos. of cases are under process as on 31st March Six applicants have made Appeal to the First Appellate Authority/Central Information Commission, out of which 4 Nos. of cases have been disposed of at the level of First Appellate Authority and 2 Nos. of cases are under process in the Central Information Commission. NTPC Ltd. Right to Information Act, 2005 NTPC Limited has implemented RTI Act, 2005 in true spirit since its inception. The company has designated a Central Public Information Officer (CPIO), an Appellate Authority, and APIOs at all projects/ stations/ offices of NTPC. During the financial year , 445 applications were received under the RTI Act, out of which 431 have been replied. Four (4) workshops on RTI Act have been conducted at regional headquarters to share and deliberate on latest notifications, amendments and other issues for smooth implementation. NHPC Ltd. In compliance to the provisions of Right to Information Act, 2005 the Corporation has provided various documents / records at its website and appointed the Company Secretary as the Central Public Information Officer (PIO) of the Corporation. To enable nation wide access to the information, Assistant Public

211 Information Officers at each of Power Station / Project / Regional Office / Unit were also appointed. Power Grid Corporation of India Ltd. Right to Information Act, 2005 (RTI Act, 2005) is a move to replace a culture of secrecy and control in Public Authorities with one of openness, transparency and participation. The Act also proposes to strengthen the democratic setup of our country by providing citizen s access to Information in Public Authorities covering the executive, judiciary and legislature arms. Power Grid Corporation of India Limited (POWERGRID), a Government of India Enterprise, has taken concrete actions to provide information to the citizens of the country in accordance with the RTI Act Public Information Officers and Appellate Authorities have been designated at Corporate Centre and Regional Head Quarters/ RLDCs under the provisions of the RTI Act, Relevant information is also available on the POWERGRID's official website. POWER FINANCE CORPORATION LTD. Right to Information Act or RTI is a central legislation, which enables the citizens to procure information from a public authority. RTI Act is a progressive legislation based on citizen s right to know, a fundamental right enshrined in the Constitution of India. The purpose of the act is to make the executive accountable and ensure transparency in the implementation of schemes and policies. The applications received during the period under RTI were replied within the stipulated period. BUREAU OF ENERGY EFFICIENCY Right to Information Act During the year , in all 37 applications seeking information under RTI Act were received in BEE. Out of these 37 applications, 02 were transferred to other public authorities and rest was replied to within the admissible time limit. During the same period, one appeal was also received by the Appellate Authority, which was also disposed off within admissible time limit. NEEPCO : Right to Information Act NEEPCO has provided a link for RTI in its website. RURAL ELECTRIFICATION CORPORATION LTD. The information based on the quarterly Report on RTI Application received and disposed off during the period w.e.f to , is given as under: RTI ANNUAL RETURN INFORMATION SYSTEM Annul Return Form Ministry /Deptt./Organization : Ministry of Power/Rural Electrification Corporation Ltd. Requests Opening Balance as on Received during to (incl. cases transferred to other public authority) No. of cases transferred Decisions where requests/appeals rejected Decisions given / Rejected Requests Appeals First Appeals NIL NIL 82 9 NIL NIL NIL 2 Under process No. of cases where disciplinary action taken against any officer 0 No. of CAPIOs designated No. of CPIOs designated No. of AAs designated No. of times various provisions were invoked while rejecting requests Relevant Sections of RTI Act,2005 Section 8(1) Sections a b c d e f g h i j Others NIL NIL NIL NIL NIL NIL NIL NIL NIL 6 NIL NIL NIL NIL ANNUAL CHARGES COLLECTED (IN Rs.) Registration Fee Amt. Additional fee & any other charges Penalties Amount NIL 205

212 Statement Showing RTI Fees received w.e.f to Quarter ending Registration Fee Additional fee & Total Amt. Penalties Amount period Amt. any other charges NIL NIL NIL NIL NIL Total NIL TEHRI HYDRO DEVELOPMENT CORPORATION LTD. RTI Secretariat is functional in THDC for dealing with the cases received under RTI Act, 2005, submission of reports and returns to Govt., and submission of reports/replies to the applicants, Govt. Deptts., State/Central Information Commissions. The number of cases received, replied and pending as on are as under: S.No. Period No. of cases No. of cases No. of cases Pending received rejected replied cases received at the end of Quarter and are under process. 1st Appeal (Appellate Authority Shri A.S.Bisht, Director (Personnel) S.No Period No. of Appeals No. of Appeals No. of Appeals Pending if any rejected Admitted NIL cases received at the end of Quarter and are under process. 2nd Appeals (Authority Central Information Commission) S.No. Period No. of Appeals No. of Appeals Decision of C.I.C. disposed off Decision of THDC upheld Decision of THDC upheld BHAKRA BEAS MANAGEMENT BOARD Right to Information Act, 2005 is in place and fully operational w.e.f 12th October, The Act provides for setting out the practical regime of right to information in order to promote openness, transparency and accountability in public offices. BBMB has adopted and implemented the Act in letter and spirit. The necessary infrastructure has been provided for operationalization of the Act. BBMB has designated nine Asstt. Public Information Officers (APIOs) and eight Public Information Officers (PIOs) at different locations. In line with requirements of the Act, eight Appellate Authorities have also been designated. The official Website of BBMB ( depicts official designations, addresses and phone nos. of these officers. Comprehensive details regarding the procedure in respect of applying for information have been given on the website. The information regarding 17 no. manuals which have been prepared as per provisions of Section 4(2) of the RTI Act, is also available on the website. The information is regularly updated from time to time as per provisions of the RTI Act. The quantum of applications received under the Act, appeals made & other related details are given below : the applicants, Govt. Deptts., State/Central Information Commissions. The number of cases received, replied and pending as on are as under: 206

213 Details relevant to RTI Act for the year Opening Balance as on Requests 47 First Appeals 1 No. of cases where disciplinary action taken against any officer Received during the year (including cases transferred to other Public Authority) No. of cases transferred Nil Nil Nil Decision where requests/ appeals rejected Nil Decision where requests/appeals accepted 776* 38** No. of times various provisions were invoked while rejecting requests Relevant Sections of RTI Act,2005 Section 8(1) Sections a b c d e f g h i j Others NIL ANNUAL CHARGES COLLECTED (IN Rs.) Registration Fee Amt. Additional fee & other charges Total Penalties Amount (document charges) Rs.7780/- Rs. 2523/- Rs. 10,303/- Nil Note:- *49 No. of applications were received during March, **3 No. appeals were received during March, Central Power Research Institute There were 19 cases of RTI during the year seeking information under RTI Act 2005 and reply to all the applicants were given as per the provisions of the Act. National Power Training Institute 41 applications seeking information under RTI Act 2005 have been received during the period from to and reply to all the applicants were given as per provisions of the Act RECREATION ACTIVITIES Shri S. R. Narayanan working as an ad-hoc Assistant with the Reforms & Restructuring Cell of this Ministry was nominated for the Level A - CSS Cadre Training Programme at the Institute of Secretariat Training & Management (ISTM). He has secured the first rank and is to be felicitated by the Department of Personnel & Training at a function to be held at Vigyan Bhawan during July-August, The Ministry has a Recreation Club for its staff for looking after the cultural and sports activities. The Hon ble Minister of Power and the Secretary (Power) are its Chief Patron and Patron, Respectively. The teams from Ministry of Power have been taking part in different disciplines in various tournaments and cultural meets organized by Power Sports Control Board (PSCB), and Inter-Ministerial tournaments organized by Central Civil Services and Sports Board (CCSCSB), Department of Personnel and Training, Government of India. Major Achievements Shri Paritosh Gupta stood First position (Winner) in singles category & Shri Paritosh Gupta and Shri M.P.Chamoli of this Ministry stood Second position (Runners-up) in Power Sports Control Board (PSCB) carom tournament in Doubles Category. The Carrom Men Team of Ministry of Power stood Second Position in the Team Championship Category under the captaincy of Shri Paritosh Gupta, UDC in the same tournament. Smt. Renu Chug, PA of Ministry of Power s Women Team stood first position (Winner) in the single category and Smt. Renu Chug and Smt.Vandana Talwar, UDC of this Ministry stood Second Position (Runners-up) in the PSCB carrom tournament in Double Category. The Carrom Women Team of Ministry of Power stood Third Position in the Team Championship Category under the captaincy of Smt.Nirmal Dobhal, PS in the same tournament. This tournament was organized by Rural Electrification Corporation (REC) under the aegis of Power Sports Control Board ( ) in Delhi. Special Achievements Shri Randhir Singh Toor stood First/Second/Third Positions in various tournaments organized by Inter-Ministry/Delhi State veteran athletic tournaments ( ) are as under :- 1. Delhi State Veteran Athletic Tournament 5000 Meters 1st Position 2. Delhi State Veteran Long Jump Tournament - 1st Position 3. All India Veteran Athletic Tournament 400 Meters 2nd Position 207

214 4. Inter-Ministry wrestling tournament (Veteran) - 2nd Position 5. Inter Ministry Veteran Athletic Tournament 100 meters - 3rd Position 6. Delhi State Veteran Athletic 100 meters 3rd Position Consultative Committee of Members of Parliament During the year the Ministry of Power coordinated and organized three meetings of the Consultative Committee of Members of Paliament for the Ministry of Power. The subjects for discussion at these meetings were : 1. Power Projects Development by NTPC with special reference to 11th Plan targets ( ). 2. Review of Damodar Valley Corporation. ( ) 3. Power Grid Corporation of India Ltd. ( ) COMMITTEES Finance Constitution of Sub-Committee of the Standing Group of Ministers concerning IFD is given below, for necessary action. In the conference of Chief Ministers held on , the Hon ble Prime Minister announced constitution of a Sub- Committee of the Group of Ministers to look at financing issues including upgradation of transmission and distribution networks. The Sub-Committee was constituted on The Interim Report of the Sub-Committee was submitted by Deputy Chairman, Planning Commission to Finance Minister on The draft final report is being updated for consideration by the Sub-Committee. The extended term of the Sub-Committee is up to Transmission Committee on Manpower, Certification and Incentives for the personnel employed on 'System Operation' at various levels and also for ring-fencing the Load Despatch Centres Ministry of Power had constituted a Committee on under the chairmanship of Shri Gireesh B Pradhan, Additional Secretary, to examine issues relating to manpower, certification and incentives for the personnel employed on system operation at various levels and also for ring-fencing the load dispatch centres to ensure their functional autonomy and give recommendations. The Committee submitted its Report in August The need for secure, reliable and economic system operation strengthening of Load Despatch Centres was emphasized. The time had come to create an environment where the Load Despatch Centres had functional autonomy, independent and sustainable revenue stream, adequately staffed with technical personnel having the right skills equipment and incentives to a rapidly changing multi supplier multi consumer scenario. The Report was a timely one and its implementation needed to be put on fast track. A detailed action plan with timelines was finalized. The action plan includes among other things preparation of a separate audited balance sheet and profit and loss account for SLDCs, preparation of rolling CAPEX plans for upgradation of LDCs, segregation of revenue stream for LDCs into fees and charges, ULDC tariff, open access, consultancy charges and other incomes, training and certification of System Operators in the country and establishment of awards for best LDCs and Load Despatcher. Three Task Forces were constituted for effective monitoring and implementation of the recommendations of the Committee. The Committee's Report is available on the Ministry of Power website SETTING UP OF ULTRA MEGA POWER PROJECT The Government of India had launched an initiative for the development of coal-based Ultra Mega Power Projects (UMPPs), each with a capacity of 4,000 MW. The projects are awarded to developers on the basis of tariff-based competitive bidding. To facilitate tie-up of inputs and clearances, project-specific shell companies have been set up as wholly owned subsidiaries of the Power Finance Corporation (PFC) Ltd. These companies undertake preliminary studies and obtain clearances relating to water, land, fuel and power off take tie-up prior to award of the project. Originally, nine sites were identified by CEA in various States for the proposed UMPPs. These include four pithead sites, one each in Chhattisgarh, Jharkhand, Madhya Pradesh and Orissa, and five coastal sites, one each in Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu. It is proposed to set up pithead projects as integrated projects with captive coal mines and for the coastal projects, usage of imported coal is envisaged. The UMPP projects would help lower the cost of power to consumers and reduce emissions. The bidding process in respect of Sasan, Mundra and Krishnapatnam UMPPs has been completed. M/s. Tata Power has been awarded the Mundra Project at Rs per kwh. M/s. Reliance Power Ltd. has been awarded Sasan and Krishnapatnam UMPPs at Rs per kwh and Rs per kwh respectively. Further development work is being undertaken by the respective developers. Regarding Tilaiya UMPP in Jharkhand, the project is proposed to be installed near Barhi village to the north of Tilaiya Dam in Hazaribagh Distt. of Jharkhand. M/s. Reliance Power Ltd. was the successful bidder with an evaluated levelised tariff of Rs per kwh. LoI was handed over to M/s. Reliance Power Ltd. on With respect to UMPP in Tamilnadu, the site at Cheyyur is finalised along with captive port which is uneter finalisation. Consultants have been appointed by the SPV of PFC for carrying out various studies. As far as the other UMPPs to be located in the States of Chhattisgarh, Karnataka, Maharashtra and Orissa are concerned, requisite inputs regarding land availability and water linkage are being examined in consultation with the concerned State Governments. The further progress of these four UMPPs is therefore dependent on early finalization of the site and water availability. Some States have also requested for additional UMPPs; for this, suitable sites are required to be identified. 208

215 Utilization of External Assistance During During , the utilization of external assistance in power sector was Rs crore, which indicates a growth of more than 25% over utilization of external assistance during For the last few years, the utilization of external assistance in power sector is showing an increasing trend. The utilization of external assistance in power sector during the last three years is as follows: (Rs. In Crore) Year Budgetary Revised Estimates Utilisation Growth of Utilisation Estimates over previous year % % % Loan Agreements for the following 8 projects, spanning across generation, transmission and distribution were signed during , bringing in USD 1.4 billion (appx. Rs crore) from external funding agencies for the Indian power sector: 1. H.P. Clean Energy Development Investment Programme / ADB tranche-i (USD 150 million) 2. Uttarakhand Power Sector Investment Programme / ADB tranche- II ( USD 62.4 million) 3. Uttarakhand Power Sector Investment Programme / ADB tranche- III ( USD 30.6 million) 4. National Power Grid Development Investment Programme/ ADB tranche- II (USD 200 million) 5. Additional Financing for IV Power System Development Project / World Bank (USD 400 million) 6. Amended Agreement for Krishnapatnam TPP/ APPDCL/ KfW (Euro 281 million) 7. Pare HEP/ NEEPCO/ KfW (Euro 80 million) 8. HVDS project in Haryana / REC/ KfW (Euro 70 million) In addition, loan negotiations for the following two projects for USD million (appx. Rs crore) were successfully concluded : 1. R&M of coal fired power stations in India / Multistates / World Bank (USD million) 2. M.P. Power Sector Investment Programme tranche- V / ADB (USD 166 million) 209

216 CHAPTER - 24 E-GOVERNANCE / INFORMATION TECHNOLOGY (IT) INITIATIVES Computer Cell of the National Informatics Centre (NIC) extends ICT (Information & Communication Technology) services to the Ministry of Power in close coordination with IT cell of the Ministry. These services include provision of Network Backbone, efficient Network Services, Web Services, System Requirement Study, Design & Development of various Management Information Systems (MIS)/ Decision Support Systems (DSS) and related training for promoting e-governance in the Ministry. Major Projects/Activities during Several ICT projects/activities have been taken up and the same are implemented/ under different stages of development and implementation in the Ministry during this period. These are described below under different categories : (1) Web Sites (1.1) Web Site for Ministry Of Power The web site for Ministry of Power (both in Hindi and English version) available at was further updated by uploading the contents on New Government policies and programmes, notifications, tenders, appointments, budget details, summary of monthly accounts of Principal Accounts Office, annual report apart from other regular reports related to distribution, generation, transmission & rural electrification. (1.2) Web Site for Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) The web site for RGGVY (both in Hindi and English version) designed, developed and hosted by (NIC) was launched by Minister of Power on 28th May,2008 and is available at The objective of implementation of the web site is to bring the static as well as updated information related to RGGVY into public domain to promote transparency as well as to provide a platform for active public feedback and participation to facilitate an efficient, effective and responsive administration/implementation of RGGVY. The website provides useful information (appropriately structured with ease of navigation) regarding RGGVY since its inception in the 10th Plan and its updated status in 11th plan. The information broadly includes details like RGGVY at a glance, definition of electrified village, RGGVY in 10th Plan, RGGVY in 11th Plan, Office Orders/O.M., franchisee system, milestones, monitoring, REC project offices, implementing agencies involved in RGGVY,etc. Apart from above, the website also provides important facility in the form of Public Forum wherein anyone can post his feedback (observations/comments/suggestions) about the scheme and its implementation. Implementing Agencies can in turn respond to these comments/suggestions (using their Login-Ids.) and the same can also be viewed by the public through this website. (1.3) Web Sites for Associated organizations Necessary technical support was provided to associated organizations in Power Sector to host their web sites at NIC Internet Data Center. They are being given regular support to maintain /update their web sites on NIC Server using VPN account. The following web sites are being maintained : S.No. Website URL Website Title 1. cea.nic.in Central Electricity Authority 2. ntpctender.com National Thermal Power Corp. Ltd. (with a provision of payment gateway for on line financial transaction using NIC Data Center Server) 3. ntpcindia.com National Thermal Power Corp. Ltd. 4. nhpc.gov.in National Hydroelectric Power Corp. Ltd. 5. thdc.gov.in Tehri Hydro Dev. Corp. Ltd. 6. nreb.nic.in Northern Regional Electricity Board 7. bee-india.nic.in Bureau of Energy Efficiency 8. cercind.gov.in Central Electricity Regulatory Commission 9. pfcindia.com Power Finance Corporation Ltd. 10. neepco.gov.in North Eastern Electric Power Corp. Ltd. 11. recindia.com Rural Electricity Corporation Ltd. 12. npti.nic.in National Power Training Institute 13. pmintpc.com NTPC Power Management Institute 210

217 (1.4) Web Portal for Right to Information Act, 2005 As per the directives of Deptt. Of Personnel & Training, a new web page for Right to Information Act, 2005 was designed, developed and incorporated in the official web site of the Ministry. The web page is available at (1.5) Content Updation of Bharat Nirman Web Portal MIS Reports for RGGVY under Bharat Nirman web portal are being updated fortnightly and are available at bharatnirman.gov.in under Electrification Option. (1.6) Web Portal for RGGVY under Flagship Programme of Planning Commission RGGVY has been covered under flagship programme of Planning Commission. The input parameters to capture district level aggregated data and report formats to generate monitoring reports for RGGVY under this Programme were finalized, the required software module was developed and incorporated in the portal. The report enable to display/print the data from national level to block level. It is available at and is being updated regularly. (1.7) IntraPower Portal IntraPower portal available at implemented in the Ministry with an objective to provide Government to company expand services to its employees was further enriched by incorporating new modules. Ministry officials access this portal using their authenticated Login- Ids. More officials were given authorization to access the portal. The portal facilitates on line access of circulars/ notices, telephone/ directory, printing of forms (leave, LTC, medical, GPF, higher education, HBA, loans, tour, income tax, general stores etc.), generation/printing of pay slipsetc. (2) Management Information Systems (MIS)/ Decision Support Systems (DSS) (2.1) Web Based Management Information System (MIS) for RGGVY : A Web Based Management Information System (MIS) for RGGVY has been designed, developed and implemented to help capture village level data on the coverage/ progress details of the scheme from the field-level offices of the implementing/executing agencies at remote locations and generate the required reports for monitoring and review at various levels. This system has also been integrated with RGGVY web site and is accessible only through authenticated Login-Ids. The designated users from districts, states, REC corporate office & implementing Agencies can logon to MIS and enter the desired data. Based on this data, reports on the following are being generated and placed in the public domain through this website. Villages Covered (DPR) List and snapshots of villages targeted for electrification/intensive electrification under RGGVY. Villages Completed List of the un-electrified/deelectrified villages (District/Block-wise) where the electrification works are completed under RGGVY. Progress Reports (State / District level DPR Coverage, Physical & Financial Progress based on District Level Aggregated Data). The reports enable to show data from National level to village level. (2.2) Web Based Milestones Monitoring System for RGGVY Design, development & implementation of Web Based Milestones Monitoring System for RGGVY has been taken up. This system will be helpful to monitor physical and financial progress of projects under RGGVY implementation in 11th Plan. The major objectives of the desired system are to facilitate entry of milestones related data from remote locations and generation of the desired queries/reports for monitoring purpose depending on various milestones related criteria. The formats for quarterly data entry have been finalized and Data Entry module for first quarter has been designed and incorporated in web based MIS of RGGVY. (2.3) Hydropowernet Project The details of hydro generation data of various Projects, Projects under construction, billing & collection, CEA data about PFR of Schemes, Hydro Electric (HE) schemes under survey and investigation, appraisal status of HE schemes were further entered in web based application of Hydropowernet Project. Hydro sector organizations and CEA are updating the data in this system from remote location using VPN account. The domain registration for corresponding domain was renewed and necessary follow up was done with various organizations for data updation. (2.4) Thermopowernet Project The implementation of web based system for monitoring of Thermal Power Projects was expedited further for data entry from remote location by the concerned thermal sector organizations. The system is available at and is accessible by the concerned organizations using their respective Login-ids. (2.5) Centralized Pubilc Grievance Redressal and Monitoring System (CPGRAMS) Necessary technical support was provided to Grievance cell to facilitate on line disposal of Grievances submitted by citizens to DARPG and to ministry/departments/ organizations using Web Based Centralized System for public grievance redressal and monitoring system (CPGRAMS). Launched by Department of Administrative Reform & Public Government (2.6) Comprehensive DDO (CompDDO) Package A new package called compddo was implemented to provide added features in composite payroll system (which was 211

218 implemented earlier in the Ministry). Necessary modifications were carried out in the software to incorporate the recommendations of the sixth Central Pay Commission. The module for generation of pay slips was redesigned and linked to Intra power Portal to generate pay slips of the Ministry officials as per revised pay after incorporating the recommendations of the sixth Central Pay Commission. (2.7) RTI-MIS and RTI Annual Return Information System The web based system for RTI-MIS implemented by NIC is being used to maintain all requests accompanied with specified fee as per provisions of Section 6(1) of the Act., Annual Report for the year has been posted on annual return information system. (2.8) ACC Vacancy Monitoring System (AVMS) The data updation in web based application of AVMS implemented to maintain the record of the vacancies falling under the purview of ACC ( either DPC based or Non DPC based ) was continued and necessary support is being provided to Administration Section. (3) Video Conferencing (VC) The Video Conferencing (VC) facility established in National Power Monitoring Center (NPMC) of the Ministry is being used to conduct meetings by Senior officers of the Ministry with necessary technical support of NIC cell. An international VC meet of Indo-US Task Force on Integrated Gasification and Combined Cycle (IGCC) Technology was conducted with US delegation from USA over ISDN line on 7th October,2008. The use of VC to conduct meetings provides a cost effective solution in terms of saving time and money. (4) Establishment of Executive Video Conferencing System (EVCS) Govt. had directed NIC to set up Executive Video Conferencing System (EVCS) based on NICNET on the desks of Secretaries to the Govt. of India and Chief Secretaries of State Governments and Union Territories for inter-departmental consultations as an effective mode of communication in order to carry forward e-governance as practical and effective tool. Accordingly, EVCS system was installed at the desk of the Secretary (Power). (5) ICT Infrastructure Development and Support Network Services and LAN (Local Area Network) Management The Network Services in Shram Shakti Bhawan are provided from Network Operation Centre (NOC) established in NIC Cell, Ministry of Power. The proxy server, patch server and anti- virus server are being regularly monitored in the center. The following activities were carried out in Internet connectivity over LAN was extended to more officials in the Ministry and at present 240 users in all have been provided the connectivity. The OFC (Optical Fiber Cable) connectivity from Shram Shakti Bhawan to NIC Hqrs. was upgraded to full bandwidth of 34 MBPS to provide faster network response. Fiber backbone laid earlier was made operational. VLAN (Virtual LAN) was configured in the Ministry network to create more secured environment for managing the network. Dedicated Fiber backbone connectivity was provided in the room of Secretary(Power) for EVCS. LAN & Support being provided to various officials of the Ministry in Shram Shakti Bhawan and Nirman Bhawan was continued. Cyber Security Audit of Network Equipments and Network nodes was conducted by specialized audit team from NIC Hqrs. and their recommendations were incorporated. Technical Support to National Power Monitoring Center (NPMC) Necessary technical support is being provided to NPMC to facilitate capturing of real time operational data of generation and transmission system as well as off line data regarding progress/achievement of generation, capacity addition, implementation of various transmission and distribution systems including APDRP, financial aspects and Rural Electrifications schemes and generation of various monitoring reports through computer and network facilities established in NPMC of the Ministry. Apart from above, regular technical support is being provided to Ministry officials in operating various applications, making presentations during meetings, maintaining computer systems and uploading of various system software. 212

219 REGION-WISE INSTALLED CAPACITY STATEMENT - I ALL INDIA INSTALLED CAPACITY (IN MW) OF POWER STATIONS LOCATED IN THE REGIONS OF MAIN LAND AND ISLANDS (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES** Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Northern State Region Private Central Sub Total Western State Region Private Central Sub Total Southern State Region Private Central Sub Total Eastern State Region Private Central Sub Total North State Eastern Private Region Central Sub Total Islands State Private Central Sub Total ALL INDIA State Private Central Total Renewable Energy Sources (RES) includes SHP, BG, BP, U&I,Solar and Wind Energy Abbreviation : SHP=Small Hydro Project, BG=Biomass Gasifier, BP=Biomass Power, U&I=Urban & Industrial Waste Power, RES=Renewable Energy Sources Note : (i) The SHP capacity of 1168 MW which was covered under the conventional Hydro capacity has been transferred to RES MWof captive capacity has been deducted from total SHP capacity under RES. Similarily wind capacity of MW covered under captive (06-07) capacity has also been deducted from wind power capacity under RES. (ii) The Shares of Sipat TPS(NTPC) are proposed shares, still to be approved. (iii) (**) Based on data as on as furnished by MNRE through e mail on 06/ (iv) Through Valuthur CCGT (ST of 32.4 MW & Kutch Lignite of 75 MW capacity have been syncronised during Aug 2008 & October respectively But the same have not been added to the Installed Capacity in view of definition of commissioning of Thermal Projects indicated in Office Memorendum No. 3/2/2007-P&Pdt. 12 Aug of Ministry of Power & MOM of CEA s weekly review meeting dt (v) Unit No. 2 of 60 MW (derated to 55 MW) of Faridabad TPS retired w.e.f (vi) Vijeswaram CCGT of 272.3MW capacity transferred to Captive as per approval of Member (Plg.) (vii) Figures at second place of decimal may not tally due to rounding off by computer. 213

220 STATEMENT - II INSTALLED CAPACITY (IN MW) OF POWER UTILITIES IN THE STATES/UTS LOCATED IN NORTHERN REGION INCLUDING ALLOCATED SHARES IN JOINT & CENTRAL SECTOR UTILITIES (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES** Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Delhi State Private Central Sub-Total Haryana State Private Central Sub-Total Himachal State Private Central Sub-Total Jammu State & Private Kashmir Central Sub-Total Punjab State Private Central Sub-Total Rajasthan State Private Central Sub-Total Uttar State Pradesh Private Central Sub-Total Uttranchal State Private Central Sub-Total Chandigarh State Private Central Sub-Total Central Unallocated Total State Northern Private Region Central Grand Total

221 STATEMENT - III INSTALLED CAPACITY (IN MW) OF POWER UTILITIES IN THE STATES/UTS LOCATED IN WESTERN REGION INCLUDING ALLOCATED SHARES IN JOINT & CENTRAL SECTOR UTILITIES (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES** Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Goa State Private Central Sub-Total Daman & State Diu Private Central Sub-Total Gujarat State * Private Central Sub-Total Madhya State Pradesh Private Central Sub-Total Chhatisgarh State Private Central Sub-Total Maharastra State Private Central Sub-Total Dadra & State Nagar Private Haveli Central Sub-Total Central Unallocated Total State western Private Region Central Grand Total

222 STATEMENT - IV INSTALLED CAPACITY (IN MW) OF POWER UTILITIES IN THE STATES/UTS LOCATED IN SOUTHERN REGION INCLUDING ALLOCATED SHARES IN JOINT & CENTRAL SECTOR UTILITIES (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES** Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Andhra State Pradesh Private Central Sub-Total Karnataka State Private Central Sub-Total Kerala State Private Central Sub-Total Tamil Nadu State Private Central Sub-Total NLC State Private Central Sub-Total Pondicherry State Private Central Sub-Total Central Unallocated Total State Southern Private Region Central Grand Total

223 STATEMENT - V INSTALLED CAPACITY (IN MW) OF POWER UTILITIES IN THE STATES/UTS LOCATED IN EASTERN REGION INCLUDING ALLOCATED SHARES IN JOINT & CENTRAL SECTOR UTILITIES (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES** Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Bihar State Private Central Sub-Total Jharkhand State Private Central Sub-Total West State Bengal Private Central Sub-Total DVC State Private Central Sub-Total Orissa State Private Central Sub-Total Sikkim State Private Central Sub-Total Central Unallocated Total State Eastern Private Region Central Grand Total

224 STATEMENT - VI INSTALLED CAPACITY (IN MW) OF POWER UTILITIES IN THE STATES/UTS LOCATED IN NORTH-EASTERN REGION INCLUDING ALLOCATED SHARES IN JOINT & CENTRAL SECTOR UTILITIES (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Assam State Private Central Sub-Total Arunachal State Pradesh Private Central Sub-Total Meghalaya State Private Central Sub-Total Tripura State Private Central Sub-Total Manipur State Private Central Sub-Total Nagaland State Private Central Sub-Total Mizoram State Private Central Sub-Total Central Unallocated Total State North- Private Eastern Region Central Grand Total

225 STATEMENT - VII INSTALLED CAPACITY (IN MW) OF POWER UTILITIES IN THE ISLANDS (As on ) Region Ownership Modewise Breakup Sector Thermal Total Nuclear Hydro RES** Grand Coal Gas Diesel Thermal (Renewable) (MNRE) Total Andaman State & Nicobar Private Central Sub-Total lakshadweep State Private Central Sub-Total Total State Islands Private Central Grand Total

226 CHAPTER - 25 AUDIT OBSERVATIONS OF C&AG Ministry of Power Audit Report No. CA 11 of 2008 (Regularity Audit) North Eastern Electric Power Corporation Limited Due to failure in processing and accepting the offer of the highest bidder within the validity period of the offer, the Company incurred a loss of Rs lakh. (Para ) Power Grid Corporation of India Limited The Company s decision in advancing the supply of towers without synchronisng it with the progress of erection, resulted in an avoidable extra expenditure of Rs lakh on account of payment of higher price variation and also loss of the interest of Rs lakh on the amounts released to the contractor in advance in respect of the preponed quantity. (Para ) Rural Electrification Corporation Limited The Company made irregular payment of ex-gratia of Rs crore to ineligible employees and a higher performance incentive Rs crore to its employees in spite of decline in productivity. (Para ) 220

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