elets PSU Summit 2014 - B Surendra Mohan

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elets PSU Summit 2014 - B Surendra Mohan

  1. 1. SHRI B. SURENDER MOHAN , CMD NEYVELI LIGNITE CORPORATION LIMITED ELETS PSU SUMMIT & AWARDS 2014 22ND August 2014 TC Maurya, New Delhi Presentation by
  2. 2. PSU: the backbone of the Indian Economy
  3. 3. Public Sector in India In the Post Independence era, India was facing severe Socio-Economic problems like regional imbalances in economic development, lack of trained manpower, low levels of employment, weak industrial base, inadequate investments, lack of infrastructure facilities, etc. • The first Prime Minister of free India, Pandit Jawaharlal Nehru and other nationalist leaders shouldered the great responsibility of building a strong and modern India. • First Industrial Policy was adopted by Govt. of India in 1948 and implemented the planned economic development polices, which envisaged the roadmap for Public Sector. • This resulted in self-reliant development of public sector and economic growth of our country which paved way for creation of large base and scope for PSUs. August 22, 2014 Neyveli Lignite Corporation Ltd 3
  4. 4. First Phase • Initially, the public sector was confined to core and strategic industries like Railways, Post & Telegraph, Ordinance Factories etc. During the first five-year plan (1951-56), there were only 5 CPSEs in the country with a financial investment of Rs. 29Cr. Second phase Witnessed Nationalization of Banks & Industries, takeover of sick units from the private sector and entry of the public sector into new fields.  Manufacturing, Engineering, Steel, Heavy machinery, Machine tools, Fertilizers, Drugs, Textiles, Pharmaceuticals, Petro-Chemicals, Exploration, Mining & Extraction of Minerals, Refining of crude oil, Services such as Telecommunication, Trading, Tourism and Warehousing and a range of consultancy services. August 22, 2014 Neyveli Lignite Corporation Ltd 4
  5. 5. As per the DPE Survey 2012-13 • No. of CPSEs in 1956 – 5 Nos. with financial investments Rs.29 Crs. • No. of CPSEs as on 31.03.2013 – 277 with Financial investment of Rs. 8,50,599 Crs. • Growth in the number of CPSEs has directly reflected significant increase in investments. • Capial employed in all CPSEs as on31.03.2013 was Rs15,32,007 cr • Total investment in all CPSEs Rs 8,50,599 cr. • Net Profit earned by all CPSEs Rs 1,15,300 cr • Total Income of all CPSEs was Rs 19,31,150 crore • CPSEs contribution in terms GDP at market prices in 2012-13 was of Rs 1,00,20,620 crore , this a percentage of GDP is ranged from 20% to 24%. August 22, 2014 Neyveli Lignite Corporation Ltd 5
  6. 6. • CPSEs’ foreign exchange earnings contributes for 9% of the total export earnings of our country. • CPSEs offers source of income to Central Exchequer Rs 162402 cr ,in two ways (i) Payment of dividend through investments in CPSEs and interest on government loans (ii) Payment of Taxes & Duties. Central Exchequer sources’ 65% of the revenue from CPSEs through payment of Excise duty and Corporate Taxes. • CPSEs account for over 20% of BSE’s market capitalization. • In FY2012-2013, CPSEs employed 1.4 million people, of which 25% belonged to the managerial and supervisory cadre. Paid a remuneration of Rs 1,16,375 crore Per capita wages Rs 8.29 lakhs.(NLC Rs 11.24lakhs) August 22, 2014 Neyveli Lignite Corporation Ltd 6
  7. 7. Performance of CPSEs • As a new endeavour of Govt. of India, GoI had introduced the ‘Navratna’ scheme in 1997 • CPSEs which are at the higher end of the ‘Navratna’ category and have the potential to become Indian Multinational Companies (MNCs) have been recognized as a separate class ‘Maharatna.’ • The objective of the ‘Maharatna’ scheme is to empower mega CPSEs to expand their operations and emerge as global giants. • Presently GoI has accorded the status of ‘Maharatna’ to 7 CPSEs, ‘Navratna to 17 CPSEs, ‘Miniratna Category - I CPSEs to 53 & Category - II to 18 CPSEs to empower and equip themselves to react proactively to market forces. August 22, 2014 Neyveli Lignite Corporation Ltd 7
  8. 8. Evaluation of CPSEs Performances • To supervise overall performance of the CPSEs for better results, to ensure accountability and grant greater autonomy to PSUs • Every Financial Year a Memorandum of Understanding (MoU), a mutually negotiated document is signed between the management of the PSU and Administrative Ministry in the Government. August 22, 2014 Neyveli Lignite Corporation Ltd 8
  9. 9. CPSEs are pioneers in CSR activities August 22, 2014 Neyveli Lignite Corporation Ltd 9 To over come challenges in industry CSR is required. CSR leads to good governance by balancing the need of various stakeholders and cordial Industrial Relations. Considering importance of CSR, the Companies Act 2013 made CSR compulsory- “Comply or explain” But • The importance of CSR was realised and being practiced by CPSEs for decades. • In 1994, DPE issued Guidelines on “Social obligations of PSU” • In 2010, issued CSR guidelines directing CPSEs to spend 5% to 0.5% of Net Profit depending on profitability of the company. ( companies earing Net Profit upto Rs 100 cr 3 to 5%, 100 cr to 500 cr – 2 to 3%, above 500 cr 0.5% to 2%) • In 2013 CSR guidelines were integrated with Sustainable development guidelines. • MOU between the Ministries and PSUs, included CSR as one of the MOU parameters • Thus Indian PSUs started practicing the CSR for decades, where the CSR was not a compulsory one for Indian Corporates.
  10. 10. Neyveli Lignite Corporation Limited
  11. 11. 11 Mine-I 10.5 MTPA TPS-I 600 MW TPS-IE 420 MW TPS-II -1470 MWMine-II 15.0 MTPA Mine-IA 3.0 MTPA Barsingsar mine 2.1 MTPA (Rajasthan) Barsingsar TPS 250 MW TPS-II E 500 MW
  12. 12.  Incorporated on 14-11-1956 under Companies act 1956  Core Business – Lignite mining & power generation  Schedule A, Navratna CPSE since April 2011.  Lignite mining capacity: 30.60 MTPA  Power Generating capacity: 2740 MW  Paid up capital Rs. 1677.71 Cr. Net worth Rs 13381 Cr  Market capitalization Rs 18203 in June 2014  Profit After Tax Rs. 1501.88 Cr. in 2013-14.  For 2013-14, an interim dividend of Rs.150.99 cr (10%) paid to GOI. A final dividend of Rs.271.78 cr (18%) is proposed taking the total dividend pay out to Rs.422.77  16566 employees as on 01.08.2014. (Executives: 4298, Non-Executives: 12268).  Subsidiaries : I. NLC Tamilnadu Power Limited (NTPL) – NLC 89% and TANGEDCO 11% II. Neyveli UttarPradesh Power Limited (NUPPL) – NLC 51% and UPRVUNL 49%.  Joint Venture: MNH Shakti Ltd (MCL – 70%, NLC– 15% and Hindalco – 15%)  MOU rating : 2011-12 Excellent : 2012-13 Excellent : 2013-14 Excellent (Provisional)August 22, 2014 Neyveli Lignite Corporation Ltd 12
  13. 13.  Allocation of Coal blocks by GOI  Pachwara South (279 MT of reserves) – for 1980 MW Ghatambur Thermal Power Project in UP of NUPPL  Jilga Barpali (396 MT of reserves for NLC) (Jointly with CSPGCL) - for 4000 MW Sirkali Thermal Power Project of NLC.  Capacity at the End of XII Plan Product Present capacity Addition in XII Plan Capacity at the end of XII Plan Lignite (MTPA) 30.60 6.00 36.60 Lignite based power (MW) 2740 500 3240 Coal based power (MW) 1000 1000 Wind Power (MW) Nil 51 51 Solar Power (MW) Nil 20 20 August 22, 2014 Neyveli Lignite Corporation Ltd 13 CSR -The CSR expenditure of NLC for the year 2013-14 is Rs. 26.30 Cr. i.e, 1.80% of PAT as against the norm of 0.5%
  14. 14. 16000 18000 20000 2011-12 2012-13 2013-14 18576 18600 1892918789 19902 19988.73In Million Units Performance in the last three years Target Actual August 22, 2014 Neyveli Lignite Corporation Ltd 14
  15. 15. 220 230 240 250 260 270 2011-12 2012-13 2013-14 239.5 248 256 245.9 262.23 266.09 In Lakh Tonnes Performance in the last three years Target Actual August 22, 2014 Neyveli Lignite Corporation Ltd 15
  16. 16. 4866.85 5590.07 5967.235615.21 6173.02 6991.99 4000 5000 6000 7000 8000 2011-12 2012-13 2013-14 Sales Total income August 22, 2014 Neyveli Lignite Corporation Ltd 16
  17. 17. 11989.57 12925.15 13881.07 11000 11500 12000 12500 13000 13500 14000 14500 2011-12 2012-13 2013-14 August 22, 2014 Neyveli Lignite Corporation Ltd 17
  18. 18. 2485.46 2592.01 2980.96 2000 2200 2400 2600 2800 3000 3200 2011-12 2012-13 2013-14 PBDIT August 22, 2014 Neyveli Lignite Corporation Ltd 18
  19. 19. 1983.89 2047.65 2209.13 1700 1800 1900 2000 2100 2200 2300 2011-12 2012-13 2013-14 PBIT August 22, 2014 Neyveli Lignite Corporation Ltd 19
  20. 20. 1411.33 1459.75 1501.88 1300 1350 1400 1450 1500 1550 2011-12 2012-13 2013-14 PAT August 22, 2014 Neyveli Lignite Corporation Ltd 20
  21. 21. Rs.in Crores August 22, 2014 Neyveli Lignite Corporation Ltd 21 1 Dividend on Central Govt. Equity 422.78 2 Central Excise 71.89 3 Service Tax 21.04 4 Custom Duty 22.19 5 Corporate Tax 632.90 6 Dividend tax 51.32 7 Clean Energy Cess 140.48 Total 1362.60 State Government Exchequers 1 Sales Tax 30.84 2 Royalty 244.43 3 Other Taxes and Duty 5.09 Total 1642.96
  22. 22. No.of equity shares – 1677709600 of face value of Rs.10 each. August 22, 2014 22 Category % President of India 90 Financial institutions of State Government 3.56 Financial institutions/Banks 0.11 Insurance companies 4.64 Mutual funds/UTI 0.02 Bodies corporate 0.17 Foreign institutional investors 0.03 NRI 0.07 Public 1.38 Clearing members 0.02 Others 0 Total 100
  23. 23. Mines : Output per Man shift (Tonnes) Company 2011-12 2012-13 2013-14 Coal Mines (OC) * 10.40 11.48 12.18 NLC 11.18 11.97 12.64 Thermal : Plant Load Factor( %) 2011-12 2012-13 2013-14 ALL India 73.47 70.13 65.55 Central Sector Thermal 82.12 79.18 76.11 Lignite based power stations 73.82 70.87 75.63 NLC 82.57 82.80 83.19 Source : CEA reports August 22, 2014 Neyveli Lignite Corporation Ltd 23
  24. 24. Market share - lignite 2011-12 2012-13 2013-14 57.07% 56.27 60.12 Market share – Lignite based Power 2011-12 2012-13 2013-14 66.88 61.57 62.00 August 22, 2014 Neyveli Lignite Corporation Ltd 24
  25. 25. THERMAL TARIFF RATE / KWHR (in Rs.) PARTICULARS 2011-12 2012-13 2013-14 NTPC 2.94 2.90 3.20 NLC 2.72 2.78 2.98 TAMILNADU 3.60 4.01 3.81 KARNATAKA 3.08 3.46 3.71 Andhrapradesh 2.54 3.02 3.81 Source: Tariff Orders of respective State Electricity Regulatory Commission. August 22, 2014 Neyveli Lignite Corporation Ltd 25
  26. 26. Sl. No Name of the Project Project Cost Rs Crs. Time Schedule 1 TPS-II Expansion ( 2 x 250 MW) 2014-15 3391.00 2 Coal based Power project at Tuticorin ( 2 x 500 MW) 6602.74 2014-15 3 Neyveli New TPS ( 2 x 500 MW) 5907.11 2017-18 August 22, 2014 Neyveli Lignite Corporation Ltd 26
  27. 27. S. N O Project Capacity Est.cost Rs.cr Status 1 Restructuring of Mine I and IA, Tamilnadu 1.50 MTPA 1458.17 FR completed. MOE&F issued Terms of Reference for EIA/EMP studies. EIA/EMP report is under finalization 2 Barsingsar TPS Extension, Rajasthan 250 MW 2094.80 FR prepared. EC obtained. Land is already in possession of NLC. Due Diligence study in progress. 3 Hadla Lignite Mine, Rajasthan 1.9 MTPA 512.92 FR prepared. EC obtained. NLC has paid Rs.127.43 Lakhs towards reimbursement cost of 1107 ha of land. Due Diligence study in progress. 4 Bithnok TPS, Rajasthan 250 MW 2146.89 FR completed. EC issued by Environment Impact Assessment Authority, Rajasthan. Water supply agreement for 25 cusecs from IGNP was entered on 10th June 2014. Due Diligence study in progress. 5 Bithnok Lignite mine, Rajasthan 2.25 MTPA 504.21 EAC of MOE&F recommended environmental clearance. However MOE&F informed that EC will be issued after the project is accorded stage-I forest clearance. In this regard application submitted on 5th March 2014. Due Diligence study in progress. August 22, 2014 Neyveli Lignite Corporation Ltd 27
  28. 28. S.N o Project Capacity Est.cost Rs.cr Status 6 Coal based TPS, Ghatampur, UP 1980 MW 14375.00 Implementation through JV, NUPPL (Neyveli Uttar Pradesh Power Limited). PIB recommended the project to CCEA in January 2013. MOE&F deferred consideration of issue of EC till Pachwara south coal block , allotted to this project, is given Stage-I forest clearance. So far Rs.69.16 Cr has been disbursed for land acquisition.EOI for Steam Generator and Turbine Generator packages opened in September 2013and for Balance of Plant in June 2014. 7 Development of Pachwara South coal block 11 MTPA * GOI allocated this coal block for the proposed Ghatampur coal based thermal power project. TOR issued by MOE&F in February 2014 for preparation of EIA/EMP reports. CMPDIL the contractor for exploratory drilling suspended the work due to law & order problem. 8 Development of Jilga Barpali coal block 12 MTPA * GOI allocated this coal block to NLC (396 MT) for the proposed Sirkali Coal based power project and Chattisgargh Power Generation Corporation (150 MT). Activities related to signing of JV agreement is in process. 9 Sirkali TPS, Tamilnadu 4000 MW 28964.00 FR under preparation. * - Project cost will be known after preparation of FR August 22, 2014 Neyveli Lignite Corporation Ltd 28
  29. 29. To meet the future coal requirement for the upcoming coal based power projects  NLC has floated an Global Expression of Interest (EoI) for acquiring coal assets abroad on 07.02.2013. Offers have been received for coal blocks in Mozambique, Indonesia and Australia. Action is under process for technical, financial and legal due diligence studies August 22, 2014 Neyveli Lignite Corporation Ltd 29
  30. 30. Awards: • NLC has been awarded “Golden Peacock Occupational Health & Safety Award – 2013” for TPS-II on 19th July 2013 at New Delhi. The Award instituted by the Institute of Directors (IOD) New Delhi was presented by Hon’ble Union Minister of State for Information and Broad Casting. • NLC has won the Meritorious Award for the Environmental Excellence & Sustainable Development 2011-12 instituted by Standing Conferences of Public Enterprises (SCOPE) which was presented by Hon’ble Shri Pranab Mukherjee, President of India on 26.04.2013 at Vigyan Bhawan, New Delhi. • NLC has been conferred “Best Overall Performance (Brown Coal)” Award 2013 and selected for the “6th India Power Award” instituted by “The Council of Power Utilities”. August 22, 2014 Neyveli Lignite Corporation Ltd 30
  31. 31. • NLC has bagged the National Energy Conservation award for its Mine unit for the year 2013 instituted by Ministry of Power. Hon’ble President of India Shri. Pranab Mukherjee, issued the award in a function held at Vigyan Bhawan, New Delhi, on 16th December 2013. • The Institute of Engineers (India) awarded CMD, NLC with the “Eminent Personality Award” on 20th December 2013 during 28th Indian Engineers Congress at Chennai. • Thermal Power Station-I Expansion of NLC bagged the Silver Shield of the National Environmental Management Award among the coal and lignite based Thermal Power Stations for the year 2012-13 on 4th February 2014. • IPE CSR Corporate Governance Award’ instituted by Institute of Public Enterprises at Mumbai on 24.11.2012 to NLC, for its dedicated service to the society. August 22, 2014 Neyveli Lignite Corporation Ltd 31
  32. 32. Issues in setting up a new mine • Land acquisition, Rehabilitation & Resettlement of displaced persons, increasing trend in compensation for land, demand for permanent employment etc makes mining difficult and costly • Geological Concentration of lignite reserves confined to limited states. • “Proven” category of lignite is quantitatively less. • Deep seated lignite and Limitation of Technology. • Occurrence of Ground Water Aquifer below lignite Bed. • Delay in obtaining Environmental clearance, Forest clearance August 22, 2014 Neyveli Lignite Corporation Ltd 32
  33. 33. Summary• • Coal continues to be major fuel source for Power generation and gap between demand supply continues to widen. • Needs collective efforts of Government, Power producers, Coal miners and Service providers to ensure modern and sufficient infrastructure for higher coal production for meeting coal demand. • Establishing a single window clearance process for Coal & Power Projects. • Support in land acquisition and R&R related issues to ensure timely and smooth completion • To promote research and exploration activities on new technologies like Coal Bed methane and Underground Coal Gasification. August 22, 2014 Neyveli Lignite Corporation Ltd 33
  34. 34. August 22, 2014 Neyveli Lignite Corporation Ltd 34

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