Presented to :Prof. Ajay SolkheProf. Utkarsh Mangal

Presented by: Geeta kalra MBA(SFS)Prev.Roll no. 11

Power Industry

ContentsEvolutionCurrent scenario Major activitiesIssues and challenges Major playersNTPC Tata powerBibliography

2003 to 2010Growth Era

1991–2003Liberalisation

Era

1956–1991Nationalisatio

nStage

Before 1956Introductory

Stage

• ElectricitySupply Act1948

Source:; WWW..NPTI.IN

POWER

•Industry policy resolution 1956•Generation, transmission and distribution of power under state ownership

•Legislative and policy initiatives 1991• Private sector participation in generation

• Electricity act 2003•Increased competition through international competitive bidding engaged in power generation

Current ScenarioIndia as a power

Producer and Consumer globally

• With a production of 1006 TWh, India is fifth largest consumer and producer of electricity in the world

• The per capita electricity consumption in 2014- 2015 was 1,010 kWh.

• As per census, only 55% of rural households have access to electricity.

Large-scale governmentinitiated expansion

plans

• The government targets capacity addition of 89 GW under the 12th Five-Year Plan (2012-17) and around 100 GW under the 13th Five-Year Plan (2017–22)

Robust growth inRenewable sector

• Renewable energy capacity additions of 30 GW are planned in the next five years to meet the growing energy demand

• Wind energy is estimated to contribute 15 GW, followed by solar power at 10 GW

GENERATIONThe power sector in India is mainly governed by the Ministry of Power. There are three major pillars of power sector these are Generation, Transmission, and Distribution

PRESENT POWER SCENARIO OF INDIA

INSTALLED CAPACITY

(248509.63MW)

ANNUAL GENERATION(1102.9 TWh)

SUPPLY DEMAND GAP

(4.1% PEAK)

PER CAPITA CONSUMPTION

(917.18)

PLF(68.15)

ELECTRIFIEDVILLAGES(95.60%)

Source:; WWW..CEA..nic.in

GENERATIONAll India Installed Capacity (MW) as on 31-05-2015 (Region –wise)

Source:; WWW..CEA..nic.in

GENERATION

Source:; WWW..CEA..nic.in

TRANSMISSION

PGCIL is the premier organization which handles the

transmission system of India.

PGCIL

TRANSMISSION LINES

(108307ckm)SUBSTATIONS

(186 NOS)SYSTEM

AVAILABILITY(99%)

TRANSFORMATION CAPACITY

(2,09,274 MVA)

INTERREGIONAL CAPACITY

(40,050MW)

TRANSMISSION NETWORK-PRESENT

• Transmission network spread geographically over 3.3million sq

km :

• Transmission line : 2,91,336 ckm (POWERGRID : 1,08,307 ckm)

• Transformation capacity (MVA/MW)

(POWERGRID : 170,000MVA, 171 S/s)

Source:; www.powergridindia.com

DISRIBUTION

Com m e rcial 11%

Agricultural 10%

Industrial LT 2%

Domestic 77%

Category wise % of No. of Consumers

CONSUMER MIX IN INDIA

ISSUES AND CHALLENGES

•Significance shift in the cost•Compliance and regulatory risk•Political intervention•Uncertainty in climate policies•Managing planning and public acceptance risk.•Backlash against renewable subsidies•Inefficient use of low carbon technologies•Economics shocks and resulting short term energy demand shocks.

Source: Company websites, News Articles

Company Business description

• Power Finance Corporation Limited (PFC) is an NBFC engaged in financing and development activities within the Indian power sector

• Major products and services include project term loans, lease financing, direct discounting of bills, short-term loans and consultancy services

• Adani Power is one of India’s largest private thermal power producers, with total capacity of 4,620 MW; the company aims to generate 20,000 MW of power by 2020

• The company is building one of the world’s largest single-location thermal power plants in Mundra, Gujarat

• Power Grid Corporation of India Limited (PGCIL) is the single largest transmission utility in India; it is responsible for planning, co-ordination, supervision and control over inter-state transmission systems

• Damodar Valley Corporation is engaged in power generation, distribution and transmission of electric power, irrigation and flood control

• SJVN Limited is the second largest hydro power company in India• The company plans to diversify into wind power projects soon

MAJOR PLAYERS SOME MAJOR PLAYERS IN POWER MARKET

Source: Company websites, News Articles, Industry Sources,

Company Business description

• NTPC is India’s largest power producer and the sixth-largest thermal power producer in the world, with installed capacity of 41,184 MW (including 5,364 MW through JVs). By 2032, NTPC plans to reach 128,000

MW power capacity. Coal-based power accounts for more than 90 per cent of the total capacity• It has also diversified into hydro power, coal mining, power equipment manufacturing, oil and gas

exploration, power trading and distribution• Tata Power is India’s largest integrated power company, with significant presence in solar, hydro, wind and

geothermal energy space. The company accounts for 52 per cent of total generation capacity in the private sector, with an installed capacity of 8,521 MW

• The company has over 35,000 MW of power generation capacity, both operational and under development.

Reliance Power has an operational power generation capacity of 2,500 MW. FY13 saw the development of the 3,960 MW Sasan UMPP in Madhya Pradesh

• CESC Limited is a vertically integrated player engaged in coal mining, and generation and distribution of power

• NHPC is the largest hydro power utility in India, with an installed capacity of 5,295MW; it has drawn up a massive capacity expansion plan of adding 6,697 MW by 2017

• NHPC is constructing nine projects aggregating to a total installed capacity of 4271 MW. NHPC added 1,970MW and 1,150 MW during the 10th and 11th Plan periods, respectively

MAJOR PLAYERSSOME MAJOR PLAYERS IN POWER MARKET

14

NTPC

INTRODUCTION TO NTPC Largest thermal power generating company

of India. NTPC is one of the 'Navratnas‘ and going to

be identified as one of the ‘Maharatna’- giant among the 'Navratnas‘.

6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world.

In the Forbes list of ‘World's 2000 largest companies, 2008’, NTPC occupies 317th place. With a current generating capacity of 30,144 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017.

It contributes 28.60% of total power

SWOTSTRENGTHS Largest market share in domestic power generation and a broad customer portfolio

across the country. Highly skilled and experienced human resources, exposed to state-of-the art

technologies in project execution and power generation. Navaratna status .

WEAKNESS Functional orientation hampering cross functional perspective in decision making. Long and multi layered procurement process leading to long lead times and process

delay. Gaps in HR systems such as performance management, rewards and incentives and

career development

OPPURTUNITIES Expand generation capacities by putting up thermal and hydro capacities; maintain the

position of a dominant generating utility in the Indian Power sector. Backward integrate into fuel management to exercise greater control and

understanding of supply economics. Execute increased number of power plants that classify for Mega Power Projects status,

thereby reducing the cost of the projects and power and power generated.

THREATS Stringent norms for approval of increase in capital costs for projects in event of

time overrun. Stringent environmental norms in the future may add to the cost of generation. Absence of an independent regular for coal industry and the delay in private

investments lending to the risk of low availability of coal in the future

ISSUES AND CHALLENGES

§ HUMAN RESOURCES RECRUITMENT. CAREER ADVANCEMENT AND OPPORTUNITIES. REWARDS AND RECOGNITIONS.

§ FUTURE CAPACITY ADDITIONS NTPC has formulated a long term Corporate Plan up to 2017. Andhra Pradesh would get about 35 per cent power from the new capacity addition at

Simhadri.

§ CHALLENGES WITH COAL RESOURCES The policy changes in coal sector provide an opportunity to NTPC to enter captive coal

mining business. Ash Utilization is one of the key concerns at NTPC.

•4% of Global Energy Consumption in India

•Predominantly controlled by the Government of India

Electricity Generation

•The Regional Power Grids are established for optimal utilisation of the power•Inter-regional power exchanges depending upon power availability and load conditions

Power Transmission

•Electricity distribution is the penultimate process in the delivery of electric power•This interface features transformers

Power Distribution

Founder Mr. Jamshetji Tata’s vision of ‘clean, cheap & abundant power

Tata Power commissioned India’s first power plant- the hydro-electric station- in Khopoli (72 MW) in 1915

Tata Power is the largest integrated private power company in India

Company Background

Strengths

•Well Established Brand•Tata Power has invested in Renewable energy

Weaknesses

•Dependence on external sources for coal•Lack of skilled manpower for Tata Power’s Renewable energy initiatives

Opportunities

•Renewable energy is the future of power generation•With improving technology, sources such as solar energy could be economically feasible

Threats•Entry of new players such as Reliance into the power industry•Pricing wars between Reliance and Tata regarding power tariff in Mumbai

SWOT Analysis

BIBLIOGRAPHY Production and Operations Management. www.ntpc.in www.google.com Wikipedia www.cea.nic.in Forbes India Business World

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