NTPC - Exceede the performance targets

The year 1998 -99 has been yet another year of high performance for the National Thermal Power Corporation (NTPC). For the 12th consecutive year, the Corporation exceeded the performance targets set out for it in the Memorandum of Understanding (MoU) with the Government of India.
INSTALLED CAPACITY
NTPC added a capacity of 940 MW during the year 1998 -99. This addition is through Vindhyachal-II (500 MW), Kayamkulam (230 MW) and Unchahar-II (210 MW). With this the total installed capacity of the Corporation has risen to 17735 MW. A generating capacity of 1115 MW is to be added during the year 1999-2000. During the year 1998-99 NTPC launched a capacity addition programme of 8600 MW.
NTPC has improved its ranking to sixth largest thermal generator globally in terms of generation and second most efficient in capacity utilisation in the "Global Utility Bench Marking Survey" by Marketline International, UK. While, NTPC figures as the 28th largest in terms of installed capacity globally, it ranks 17th in terms of generation on 1997 performance data. The Corporation has drawn up an ambitious plan for the new millennium to become a 30,000 MW company by 2007 AD and 40,000 MW by 2012.
TURN OVER AND PROFIT
NTPC achieved a net turnover of Rs 14022 crore registering an increase of 10% over the last year's turnover of Rs 12741 crore. The provisional profit, after tax, rose to Rs.2511.87 crore registering an improvement of 14.3 per cent over the previous year's profit of Rs.2153.50 crore.
RONW & ROCE
The company registered a return on net worth exceeding 13 per cent for the first time since 1986-87. NTPC could achieve 13.27 per cent return on net worth and 12.18 per cent return on capital employed for the year 1998-99.
NTPC has made a total contribution of Rs.1695.75 crore to the exchequer during 1998-99. This comprises an advance tax of Rs.1141.54 crore for the current year and dividend of Rs.503.83 crore.
FINANCING
NTPC has raised US $ 120 million through a syndicated foreign currency term loan arranged by State Bank of India for financing the capital expenditure of the on-going projects of the company. During the year, a loan of DM 53.98 million has been pre-paid through fresh borrowing at cheaper rate of interest, resulting in savings in interest cost during the balance life of the loan.
Domestic financial institutions and public sector banks have committed term loans of Rs.5710 crore for financing new projects of NTPC. ICICI has made a commitment of Rs,2,000 crore followed by IDBI with Rs,1500 crore. Other institutions include SBI (Rs.500 crore), Oriental Bank of Commerce (Rs.500 crore), HDFC ( Rs,200 crore), Central Bank of India (Rs,200 crore) and Bank of Maharashtra (Rs.200 crore),among others.
APPROVED INVESTMENT
The Corporation has an approved investment of Rs 43764.95 crore for an approved capacity of 22515 megawatt. The authorised capital on March, 1999 was Rs.8,000 crore.
FINANCIAL LEVERAGE
Until now, NTPC was using debt equity ratio of 50:50 to finance its projects. In order to leverage its internal resources for larger capacity addition, the Corporation would like to implement all new projects with a debt-equity ratio of 70:30.
OPERATIONAL PERFORMANCE
NTPC stations all over the country generated 109.506 billion units (BUs), an increase of 3.0% over the previous year's generation of 106.29 BUs. NTPC achieved an overall PLF of 76.6 per cent despite a poor PLF of 46.7 per cent in Eastern Region. It is worth mentioning that PLF of NTPC, excluding the Eastern Region, has improved to 87.1 per cent from the previous year's level of 85.3 per cent.
The loss of generation due to grid restrictions, inadequate fuel supplies and commercially necessitated regulations was to the tune of 19241 million units during the year.
The 2nd, 3rd and 4th highest PLF in the country have been achieved by NTPC stations- Dadri, Singrauli and Vindhyachal, registering PLF of more than 90 per cent. Also, out of the 10 best rated coal based stations in the country,six belong to NTPC. These include Korba, Ramagundam and Unchahar apart from the stations mentioned above.
The Badarpur Thermal Power Station and Balco Captive Power Plant, both managed by NTPC, achieved a PLF of 78.8% and 85.8% respectively. The Talcher Thermal Power Station also recorded a PLF of 55.5% as against 18.7% in 1995-96 when NTPC acquired the station from the Orissa State Electricity Board.
MEGA PROJECTS
NTPC has initiated preparatory works on all the Mega Projects identified by the Government for execution. Apart from this, all the required works are being done for other Mega Projects to be taken up by the private sector for implementation.
REALISATION AND OUTSTANDINGS
NTPC raised a billing of Rs.14653.38 crore in 1998-99 and succeeded in realising Rs.12142.88 crore, which is approximately a realisation of 82.9 per cent.
The outstanding as on March 1999 had gone up to Rs.10142.79 crore including a surcharge of Rs.3556.74 crore. The recoverable position is given below :-

.	(Rs./crore)	(Rs./crore)
.	1998-99	1997-98
Outstanding	6586.05	4447.33
Surcharges	3556.74	2434.62
Total Outstanding	10142.79	6881.95

An amount of Rs.644.52 crore has been realised till date against Central appropriation approved by the Government in February, 1997.
The total LC opened by various bulk consumers as on 31.03.1999 is for Rs.1075.63 crore as against Rs.997.40 crore as on 31.3.98.
ISO CERTIFICATION
All stations of NTPC in the Western Region located at Vindhyachal, Kawas, Jhanor-Gandhar, Korba and Balco Captive Power Plant have achieved ISO 9002 certification.
POWER PURCHASE AGREEMENTS
During the year, the company signed PPAs with the States of Tamil Nadu,Kerala, Pondicherry, Andhra Pradesh and Karnataka for supply of power from Talcher. PPAs were also signed with Haryana, Punjab, Delhi and Uttar Pradesh for supply of power from the expansion phases of Anta, Unchahar, Rihand and Auraiya.
SELECTED DIVERSIFICATION
The articles of association of NTPC has been amended, thus allowing the organisation to unshackle it from certain existing limitations. Government approval will not be required hereafter for any level of public investment. Also in respect of joint venture operations, NTPC would be able to invest in projects upto Rs200 crore. The entire exposure in joint ventures and subsidiaries will, however, be restricted to fifteen per cent of the net-worth of the Corporation
Associated with the vast opportunity of thermal capacity addition in India, NTPC intends to enter into a number of new business, through joint venture or other routes which include:-

Renovation and Modernisation of old power stations.
Investment in LNG re-gassification terminal.
Setting up of ash-based industries to utilise fly ash and
Setting up of hydro stations.

RENOVATION AND MODERNISATION (R&M)
Thermal coal fired stations account for approximately 70 per cent of the total installed capacity in the country. Out of this, around 18,500 MW of capacity is over twenty years old and operate at an average PLF of 38 to 45%. There is a vast potential for improving the performance of these under performing stations by taking up systematic R&M works. Keeping this in view, NTPC has singed a memorandum of Understanding with ABB Kraftwerke A.G Mannhiem, Germany to set up a joint venture company for renovation and modernisation.
ASH BASED PROJECTS
During the year 1998-99, 24 lakh tons of ash has been utilised for various productive purposes against the MoU target of 23 lakh tons. The major utilisation was in the areas of cement and asbestos industry, raising ash dykes and land development. NTPC is also planning to set up large mechanized ash brick manufacturing plants on its own at various stations. To start with, such units shall be set up at Badarpur and Dadri
RESEARCH AND DEVELOPMENT
The R&D Centre at NOIDA continues to play an important role in economic power generation. The centre has entered into an MOU with Bhabha Atomic Research Centre; Australian Government for a study on coal characteristics; Sriram Institute for Industrial Research, Delhi;' Central Mechanical Engineering Research Institute (CMER),Durgapur and a number of other organisations.
CENPEEP
In its efforts to improve the efficiency of Indian power sector, the Centre for Power Efficiency and Environment Protection (CENPEP) has initiated efficiency improvement efforts at Wanakbori (GEB) and Koradi (MSEB) stations. A new condenser cleaning technology was demonstrated at Dadri, Unchahar and Ramagundam. Works on flue gas conditioning trial and introduction of predictive diagnostic maintenance techniques have been undertaken.
ENVIRONMENTAL ACTIVITIES
NTPC has undertaken a number of initiatives for improvement of environmental performance of its stations in line with its environmental policy. These steps include institutional strengthening, environmental monitoring programme, environmental audits reviews, renovation and retrofitting, ecological impact monitoring and afforestation.
CONSULTANCY BUSINESS
The Consultancy Wing has made foray in the area of providing Operation and Maintenance services and has secured the following orders:

Gujrat Industries Power Company Ltd., Baroda for their 2x125 MW Lignite fired plant with fluidized bed boilers.
TCP Limited, Chennai for its 63.75 MW coal fired plant near Chennai.

Consultancy Wing also obtained an order from the West Bengal Power Development Corporation for engineering, procurement and site supervision for 200 MW replica training simulator at Bakreshwar.
A contract was also secured from Tamil Nadu Electricity Board for preparation of Feasibility Report, Detailed Project Report and Environmental Impact Assessment study against competitive bidding. The Consultancy Wing had a turnover of Rs.14.63 crore during the year
EMPLOYEE RELATION
Employer-employee relations in NTPC continued to be cordial and harmonious throughout the year. Believing in the philosophy of participative management, employees at all levels interacted with the management through structured as well as informal meetings. MOU has been signed with employee associations/unions for introduction of the Self Contributing Superannuation Benefit (Pension) Scheme.
The total human strength of the Corporation stands at 23674 as on 31st March, 1999 as against 23585 as on 31st March, 1998.The overall Man-MW ratio for the year 1998-99 was 1:1.18. The turnover rate of the executives during the year was as low as 0.81 per cent compared to 1.28 per cent during the previous year.
The apex training institute - Power Management Institute - organised 189 training programmes covering a total number of 4170 participants during the year 1998-99.
AWARDS
A team of four employees from Kahalgaon Super Thermal Power Station bagged the Prime Minister's Shram Bhushan Award for the year 1998. Another group of four employees of Vindhyachal received the Shram Veer Award for the same period. NTPC's pavilion at the India International Trade Fair 1998 bagged the Best Pavilion Award in Public Sector Category for the third consecutive year.
The Chairman and Managing Director of the Company Shri Rajendra Singh was conferred with the maiden award for excellence and contribution to public sector management instituted by the Standing Conference of Public Enterprises (SCOPE).
RESETTLEMENT & REHABILITATION
Resettlement and Rehabilitation (R&R) issues of Singrauli region were finally resolved during the year in consultation with the World Bank with finalisation of revised rehabilitation and remedial action plans based on the recommendations of an independent monitoring panel constituted specifically for the task. The implementation of these revised RAP/ReAPs is in full swing.
Enriched by the experience gained over the past few years, NTPC today has enough expertise and confidence to successfully tackle social environment issues right from the inception of the project in a planned and systematic manner.
NTPC- At a Glance

A capacity addition of 940 MW during the financial year 1998-99 against a target of 115 MW, taking the total capacity to 17735 MW.
Capacity addition programme for 1999-2000 is 1115 MW.
Marketline survey puts NTPC as the sixth largest thermal power generator globally and second most efficient based on 1997 performance data.
Turn over of Rs.14022 crore, an increase of over 10 per cent over last year's Rs.12741 crore
Provisional profit, after tax, stands at Rs.2511.87 crore.
Contribution of Rs.1695.75 crore paid to the exchequer.
13.27 per cent return on net worth and 12.18 per cent on capital employed.
US $ 120 million raised as syndicated foreign term loan through State Bank of India.
Domestic loan of Rs.5710 crore for financing of new projects tied up with financial institutions and banks.
A record generation of over 109.5 billion units of electricity at a Plant Load factor (PLF) of 76.6 per cent as compared to last year's PLF of 75.2 per cent, despite backing down in the eastern region.
Six NTPC stations figure in the list of top ten in the country.
Outstanding dues, including surcharge of Rs.10143 crore, cause serious concern.
All NTPC stations in the Western Region - Korba, Vindhyachal, Kawas, Jhanor-Gandhar and Balco Captive Power Plant - awarded ISO certifications.
Prime Minister's Shram Awards to eight employees of Kahalgaon and Vindhyachal.