A                             Comprehensive Report                                      on                             MIC...
CERTIFICATE   This is to certify that the Project entitled “MICRO ANALYSIS OF WANAKBORITHERMAL POWER STATION” has been car...
DECLARATIONWe hereby declare that the project work entitled “MACRO ANALYSIS OF INDAINTHERMAL POWER GENERATION SECTOR” subm...
Abstract   This report focuses on various aspects of management in actual practice at WTPS, studied   during our visit to ...
TABLE OF CONTENTS1. INTRODUCTION   1.1 Background   1.2 Achievements   1.3 Objectives of the project   1.4 Promoters and o...
CHAPTER 1                 INTRODUCTIONG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
1.1 BackgroundThis power station is located on the bank of river Mahi, about 10 K.M. Downstream of Wanakbori weirand about...
1.2 Achievements    Central electricity authority award to WTPS   1. In 1987 for 5548 MUS generation Rs. 3 laces   2. In 1...
1.4 PROMOTERS AND OWNESThe promoters and owners WANAKBORI THERMAL POWER STATION works under the umbrella ofGUJARAT STATE E...
CHAPTER 2      MARKETING AND SALESG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
2.1 Details of competitorTorrent PowerTorrent Power is one of the leading brands in the Indian power sector, promoted by t...
2.3 Taxes applicable on sales activityTax on income for FY 2010-11 to FY 2015-16GSECL has projected the tax on income for ...
CHAPTER 3      PRODUCTION AND OPERATIONG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
3.1 DESIGN OPERATIONManagement QualityThere are many tasks to perform managing quality such as process strategy, location ...
effectiveness of the quality management system can be made. Here all contents to answer the questionhow Wanakbori Thermal ...
but there another way to us to understand easily by and answer some question when we look at theiroperation as follow:Effe...
General Process StrategyThe coal base thermal power plant is a bulk energy converter from fuel (coal) to electricity using...
This power station is located on the bank of river Mahi, about 10 K.M. Downstream of wanakbori weirand about 10 K.M. from ...
-   Transportation facilities can easily developed at WTPS . The railway line from WTPS can    easily connected to Godhara...
Layout strategyThermal Power Plant Lay out :The above diagram is the lay out of a simplified thermal power plant and the b...
Main parts of the plant are1. Coal conveyor 2. Stoker 3. Pulverizer 4. Boiler 5. Coal ash 6. Air preheater 7. Electrostati...
moving through it. The size of the coal particals released from the grinding section of the mill isdetermined by a classif...
pressure, increasing the steam pressure drop between inlet and exhaust of steam turbine. This furtherreduction in exhaust ...
Evaporative cooling towers are classified according to the means employed for producing air circulationthrough them: atmos...
known as air heater; air-heating system. It is not shown in the lay out.But it is kept at a place near bywhere the air ent...
chimneys. The term funnel is generally used for ship chimneys and sometimes used to refer tolocomotive chimneys.Chimneys a...
3.2. Purchase Management at WTPS  Main purchase goods of power stations are fuels, bearings, lubricating oil, Welding rod ...
-   To preserve the spares in good condition, adequate measures to prevent rusting and        dusting are being taken by s...
3.4 Inventory control system and valuationInventory management plays a strategic role in the supply chain management of po...
CHAPTER 4   FINANCE AND ACCOUNTSG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
4.2 Depreciation analysis for FY 2009-10GSECL has claimed Rs. 516.00 crore towards depreciation charges in the Truing up f...
GSECL has claimed Rs.11 crore towards loss attributing to uncontrollable factoowning to the differencein the actual capita...
SOURCE: www.gercin.org/SOURCE: www.gercin.org/     G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
SOURCE: www.gercin.org/ 4.5 COSTING METHOD Generation Costs - Variable (Energy) and Capacity (Fixed) Charges Variable Cost...
Mix of CoalGSECL projected the percentage mix of coal for different stations for the controlperiod as given in Table below...
SOURCE: www.gercin.org/GSECL stated that the prices of coal are projected based on the annual contractedquantities of indi...
CHAPTER 5            HUMAN RESOURCESG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
5.1 Organization structure of WTPSSOURCE:DGM(WTPS)        G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
5.2 Promotion and Increment policesAs per the general standing order 4 of the class 1 to the class 4 the employees are sel...
5.4 Salary structure            Sr     Existing GUVNL Pay   Revised Payscales    Weightage            NO     scales       ...
CHAPTER 6      BUSINESS STRATEGY AND OUTLOOKG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
6.1 SWOT ANALYSIS    This SWOT analysis is on the basis of GUJART STATE ELECTRICITY CORPORATIONSWOT analysis refers to a s...
total costs. GSECL has been making persistent efforts to reduce the fuel costs (per Kcal)and has achieved significant redu...
Opportunities1. Sale of power outside Gujarat – The Electricity Act, 2003 provides for open access to transmissionnetwork ...
distances from coal sources, limited hydropotential and increasing process of gas, GSECL needs to takesteps to reduce fuel...
limited financial resources and in order to bridge the gap between demand and supply,optimum utilization of existing insta...
BIBILOGRAPHYEr. Nath Rakesh;Paper „Power sector reforms-sharing of resources is the key to economical growth andsucess‟;Oc...
ANNAXURES        G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
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  1. 1. A Comprehensive Report on MICRO ANALYSIS Of WANAKBORI THERMAL POWER STATIONsubmitted in the partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (M.B.A.) Project Guide: PROF.H.J.JANI SUBMITTED BY: AKASH CHOKSI (1OM44) ANIL CHAUHAN (10F45) MADHURRAM CHUDASAMA (10M63) TEJAS VASAVA (10F76) VIREN PATEL (10M79) G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT SARDAR PATEL UNIVERSITY VALLABH VIDYANAGAR (388120) G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  2. 2. CERTIFICATE This is to certify that the Project entitled “MICRO ANALYSIS OF WANAKBORITHERMAL POWER STATION” has been carried out by AKASH CHOKSI, ANILCHAUHAN, MADHURRAM CHUDASAMA, TEJAS VASAVA and VIREN PATEL undermy guidance. PROF. H.J.JANI (DIRECTOR& GUIDE) G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  3. 3. DECLARATIONWe hereby declare that the project work entitled “MACRO ANALYSIS OF INDAINTHERMAL POWER GENERATION SECTOR” submitted to the SARDAR PATELUNIVERSITY, is a record of an original work done by us under the guidance ofPROF.H.J.JANI. AKASH CHOKSI (10M44) ANIL CHAUHAN (10F45) MADHURRAM CHUDASAMA (10M63) TEJAS VASAVA (10F76) VIREN PATEL (10M79) G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  4. 4. Abstract This report focuses on various aspects of management in actual practice at WTPS, studied during our visit to WTPS. It discusses various significant managerial points about HRM, Financial accounts, stores, inventory, purchase, efficiency, etc. which help us in understanding routine procedures. Acknowledgement This project report could not have been prepared, without help and encouragement fromvarious people. Hence, for the same reason. We would like to thank our professor H.J.JANI. Itwas for his support that we got proper guidelines for preparing this project. We are extremelythankful to Mr. S.D. Vaghela, Executive engineer, GSECL WTPS, Mr. G.S.Shah,Executive Engineer, GSECL WTPS Mr. AR.NAIK GSCEL WTPS Mr.K.B.Rathava,GSCEL WTPS, Prof.R.B.Choksi and Prof.D.B.Choksi for spending their valuabletime in constructive discussion. We are also thankful to staff of Efficiency Dept.,WTPS for necessary rendered at various stages. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  5. 5. TABLE OF CONTENTS1. INTRODUCTION 1.1 Background 1.2 Achievements 1.3 Objectives of the project 1.4 Promoters and o wners2. MARKETING AND SALES 2.1 Details of competitors 2.2 Generation forecasting and sales plan preparation 2.3 Taxes applicable on sales activity 2.4 Study of reporting system3. PRODUCTION AND OPERTION 3.1 Design operation 3.2 Purchase management 3.3 Store management 3.4 Inventory control and valuation4. FINANCE AND ACCOUNTS 4.1 Budgeting 4.2 Depreciation analysis 4.3 Interest and finance 4.4 Return on equity 4.5 Costing method5. HUMAN RESOURCES 5.1 Organizing structure of WTPS 5.2 Promotion increment policies 5.3 Recruitment and selection 5.4 Salary structure6. Business strategy and outlook 6.1 SWOT analysis 6.2 Future plan 6.3 Conclusion Bibliography G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  6. 6. CHAPTER 1 INTRODUCTIONG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  7. 7. 1.1 BackgroundThis power station is located on the bank of river Mahi, about 10 K.M. Downstream of Wanakbori weirand about 10 K.M. from Sevalia , Ta. Thasara, Dis. Kheda. It is 110 k.M. 85 K.M. and 35 K.M. fromAhmedabad, Baroda and Godhara respectively.This project constructed in two phase i.e. stage 1 and stage 2 each of 3 X 210 MW unit.For stage 1 the foundation stone laid by late prime minister shri morarjibhai desai in 1978. Unit 1, 2, and3 are commissioned on 23/03/1982, 15/01/1983 and 15/03/1984 respectively. These units are supplied,erected and commissioned by M/S BHEL and provided boiler of American combustion design andRussian designed LMW make turbines .the project cost for this stage was 259.09 corers.For stage 2 the foundation stone laid by late prime minister smt .indira Gandhi in 1982. Unit 4, 5. And 6are commissioned on 9/03/1986, 23/09/1986 and 18/11/1987 respectively. These units are also supplied,erected and commissioned by M/S BHEL and provide high pressure boiler of American combustiondesign and west Germany KWU designed turbines. These turbines are equipped with advance electronicAUTOMATIC TURBINE RUNUP SYSTEM (ATRS) . The Project cost for this stage was 318.8 cores.Including the unit no. 7 there are total seven nos. of turbo generator sets each having capacity of 210 MW. 30000 RPM. 15.75 KV. 247 MVA at 0.85 p.f.Being coal based thermal power station it is provide with coal plant comprise of being coal basedthermal power station. Each of having capacity to unload 10 wagons/hour. Primary crusher housesecondary crusher house and connecting network of coal belt having 2000 Mt/Hour coal of flow capacitywith stacker – reclaimed having capacity. The required coal is getting through coal India authority fromcoal mines of Bihar , M.P. Orissa, West Bengal . the coal is transported from coal mines to Sevalia via.Ratlam-Godhara railway track. Generally 300 wagons of coal being received here to daily to meet therequirement is generally 19000 tones per day.The main water sources for water make up to power house are Mahi river main canal and tube wells. Thedesigned water requirement /unit is 13 cusec. The stage wise clarifier and D.M. plant is provide toremove the impurities from raw water to make the water suitable for boiler. Total 1830 employees areworking including 425 engineers. Compare the national average of 2.6 employee/MW the staff workingat the power station is 1.45 employees/MW which is quit less. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  8. 8. 1.2 Achievements Central electricity authority award to WTPS 1. In 1987 for 5548 MUS generation Rs. 3 laces 2. In 1989 for 6162 MUS generation Rs. 4 laces 3. In 1992 for reduction in sp. Oil consumption Rs. 21.15 laces Maximum coal wagon unloaded in one day: 522 wagons (09/12/1996) Maximum coal wagons released to railway:522 wagons(09/12/1996)1.3 Objectives of the Project -To study the operation management of the WTPS - To study the financial performance of the WTPS - To study the marketing analysis and human resources police and procedures G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  9. 9. 1.4 PROMOTERS AND OWNESThe promoters and owners WANAKBORI THERMAL POWER STATION works under the umbrella ofGUJARAT STATE ELECTRICITY CORPORATION LIMITED G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  10. 10. CHAPTER 2 MARKETING AND SALESG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  11. 11. 2.1 Details of competitorTorrent PowerTorrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 45 billionTorrent Group. With an all-round experience in generation, transmission and distribution of power, and aproven track record of implementing large power projects, Torrent Power is the most experienced privatesector player in Gujarat.2.2 Generation forecasting and sales plan preparationTo forecast the annual generation of one unit having install capacity 210 mega watt total expectedoperating hours are calculated. This calculation is based on annual over heading period, forced outage,expected average load of machine etc. The calculation sample given below tableCALCULATION G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  12. 12. 2.3 Taxes applicable on sales activityTax on income for FY 2010-11 to FY 2015-16GSECL has projected the tax on income for the control period for the FY 2011-12 to2015-16 on the basis of MAT rate @ 19.934% on the return on equity portiongenerated as detailed in the Table belowSOURCE : www.gercin.org/2.4 Study of reporting system Types of Reports Daily efficiency report Generation report Outages and machine report Coal consumption report Auxiliary consumption report Unscheduled report Monthly report Monthly performance report Generation loss report Fuel report Monthly Outage report G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  13. 13. CHAPTER 3 PRODUCTION AND OPERATIONG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  14. 14. 3.1 DESIGN OPERATIONManagement QualityThere are many tasks to perform managing quality such as process strategy, location strategies, layoutstrategies, human resources, supply- chain management, scheduling, and maintenance. Each strategy aswe mention above will be more detail in other specific part in this report.In this part of the case we mention about quality in WTPS. we just focus on International QualityStandard and Environment Standard . WTPS applied ISO 9001, and ISO 14001Now how we can understand what ISO 9001 is and how WTPS can apply itWhat is ISO 9001? ISO 9001:2000 specifies requirements for a quality management system where an organization 1. needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and 2. aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirementsIn WTPS how they can apply ISO 9001WTPS a established and maintained a quality manual that includes the control of documentand control of record.Management responsibility includes management commitment, quality policy, quality objectives, quality managementsystem planning, management representative, internal communication. For example, in management commitment, thetop management of WTPS provide evidence of its commitment to the development and implementation of the qualitymanagement system, or in internal communication, the top management of this power station ensured that thatappropriate communication processes are established within the organization and that communication takes placeregarding the effectiveness of the quality management system.For example, in purchasing part, the power stations ensured that purchased product conforms to specifiedpurchase requirements.. Measurement, analysis and improvement include monitoring and measurementControl of nonconforming product, analysis of data and improvement. For example, in analysis of datapart, power station determined, collected and analyzed appropriate data to demonstrate the suitability andeffectiveness of the quality management system and to evaluate where continual improvement of the G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  15. 15. effectiveness of the quality management system can be made. Here all contents to answer the questionhow Wanakbori Thermal Power Station can apply ISO 90001. What is ISO 14001? The ISO 14000 family addresses various aspects of environmental management. The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004 gives general EMS guidelines. The other standards and guidelines in the family address specific environmental aspects, including: labeling, performance evaluation, life cycle analysis, communication and auditing. An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an organization of any size or type to: - identify and control the environmental impact of its activities, products or services, and to - improve its environmental performance continually, and toImplement a systematic approach to setting environmental objectives and targets, to achieving these andto demonstrating that they have been achieved.In WTPS how they can apply ISO 14001 - last few years , they have pursued measures to reduce the amount of water utilised by the stations, including: o Expediting the identification and repair of leaking valves o Stopping continuous blow down on the heat-recovery boilers These measures have led to greater efficiency, almost halving the amount of water being consumed at the power stations - Being a coal based thermal power station the ash generation is approximately 5000 tones/day and to achieve effective pollution control each unit is equipped with highly efficient electro- static precipitator which collects most of the ash from the flue gases liberated through chimney. the collected ash is being disposed of in ash pond spread in 170 hectors through ash plant. To have batter pollution control he huge tree plantations. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  16. 16. but there another way to us to understand easily by and answer some question when we look at theiroperation as follow:Effective operationThe rule set to make power station betterFollowing the fixed rules in this power stationWhat is their innovation? At the end, the executive engineer of WTPS Said that their innovation isISO18001 in the near future. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  17. 17. General Process StrategyThe coal base thermal power plant is a bulk energy converter from fuel (coal) to electricity using water asthe working medium.Energy released by the burning of coal is transferred to water in the boiler to generate steam a highpressure and temperature, which then expanded the turbine to a low pressure to produced shaft work. Therotor of turbine attach with rotor of generator and ,with generate the electricity . The steam living theturbine is condensed in to water in the condenser where cooling water from a river circulates carryingaway the heat released during condensed.The water (condensate) is then feedback to the boiler by the pump and the cycle goes on repeating itsself. LOCATIONa) PositionImage 2.1 G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  18. 18. This power station is located on the bank of river Mahi, about 10 K.M. Downstream of wanakbori weirand about 10 K.M. from Sevalia , Ta. Thasara, Dis. Kheda. It is 110 k.M. 85 K.M. and 35 K.M. fromAhmedabad, Baroda and Godhara respectively.b) Factors That Affecting Location Decision of WTPS Resources:I - The river mahi is situated near to wanakbori. So the water is easily available from this mahi river for the thermal power station. - Land of wanakbori is barren. So it is not used for agriculture . so thermal power station is established here. Labour : - Labours are easily available from near by villages of Wanakbori . villages like Sonipur , Kuni, Sevalia ,and Balasinor are situated near to Wanakbori . so labours from this villages are easily available for Wanakbori thermal power station. Transportation: G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  19. 19. - Transportation facilities can easily developed at WTPS . The railway line from WTPS can easily connected to Godhara railway line, so coal can easily brought from Bihar, Madhya Pradesh, and Orissa through railway. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  20. 20. Layout strategyThermal Power Plant Lay out :The above diagram is the lay out of a simplified thermal power plant and the below is also diagram of athermal power plant.The above diagram shows the simplest arrangement of Coal fired (Thermal) power plant. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  21. 21. Main parts of the plant are1. Coal conveyor 2. Stoker 3. Pulverizer 4. Boiler 5. Coal ash 6. Air preheater 7. Electrostatic precipitator8. Smoke stack 9. Turbine 10. Condenser 11. Transformers 12. Cooling towers13. Generator 14. High - votge power linesBasic Operation :A thermal power plant basically works on Rankine cycle.Coal conveyor : This is a belt type of arrangement.With this coal is transported from coal storage placein power plant to the place near by boiler.Stoker : The coal which is brought near by boiler has to put in boiler furnance for combustion.Thisstoker is a mechanical device for feeding coal to a furnace.Pulverizer : The coal is put in the boiler after pulverization.For this pulverizer is used.A pulverizer is adevice for grinding coal for combustion in a furnace in a power plant.Types of PulverizersBall and Tube MillBall mill is a pulverizer that consists of a horizontal rotating cylinder, up to three diameters in length,containing a charge of tumbling or cascading steel balls, pebbles, or rods.Tube mill is a revolving cylinder of up to five diameters in length used for fine pulverization of ore, rock,and other such materials; the material, mixed with water, is fed into the chamber from one end, andpasses out the other end as slime.Ring and BallThis type consists of two rings separated by a series of large balls. The lower ring rotates, while the upperring presses down on the balls via a set of spring and adjuster assemblies. Coal is introduced into thecenter or side of the pulverizer (depending on the design) and is ground as the lower ring rotates causingthe balls to orbit between the upper and lower rings. The coal is carried out of the mill by the flow of air G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  22. 22. moving through it. The size of the coal particals released from the grinding section of the mill isdetermined by a classifer separator. These mills are typically produced by B&W (Babcock and Wilcox).Boiler : Now that pulverized coal is put in boiler furnance.Boiler is an enclosed vessel in which water isheated and circulated until the water is turned in to steam at the required pressure.Coal is burned inside the combustion chamber of boiler.The products of combustion are nothing butgases.These gases which are at high temperature vaporize the water inside the boiler to steam.Some timesthis steam is further heated in a superheater as higher the steam pressure and temperature the greaterefficiency the engine will have in converting the heat in steam in to mechanical work. This steam at highpressure and tempeture is used directly as a heating medium, or as the working fluid in a prime mover toconvert thermal energy to mechanical work, which in turn may be converted to electrical energy.Although other fluids are sometimes used for these purposes, water is by far the most common becauseof its economy and suitable thermodynamic characteristics.Condenser : Steam after rotating staem turbine comes to condenser.Condenser refers here to the shelland tube heat exchanger (or surface condenser) installed at the outlet of every steam turbine in Thermalpower stations of utility companies generally. These condensers are heat exchangers which convert steamfrom its gaseous to its liquid state, also known as phase transition. In so doing, the latent heat of steam isgiven out inside the condenser. Where water is in short supply an air cooled condenser is often used. Anair cooled condenser is however significantly more expensive and cannot achieve as low a steam turbinebackpressure (and therefore less efficient) as a surface condenser.The purpose is to condense the outlet (or exhaust) steam from steam turbine to obtain maximumefficiency and also to get the condensed steam in the form of pure water, otherwise known as condensate,back to steam generator or (boiler) as boiler feed water.Why it is required ?The steam turbine itself is a device to convert the heat in steam to mechanical power. The differencebetween the heat of steam per unit weight at the inlet to turbine and the heat of steam per unit weight atthe outlet to turbine represents the heat given out (or heat drop) in the steam turbine which is converted tomechanical power. The heat drop per unit weight of steam is also measured by the word enthalpy drop.Therefore the more the conversion of heat per pound (or kilogram) of steam to mechanical power in theturbine, the better is its performance or otherwise known as efficiency. By condensing the exhaust steamof turbine, the exhaust pressure is brought down below atmospheric pressure from above atmospheric G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  23. 23. pressure, increasing the steam pressure drop between inlet and exhaust of steam turbine. This furtherreduction in exhaust pressure gives out more heat per unit weight of steam input to the steam turbine, forconversion to mechanical power. Most of the heat liberated due to condensing, i.e., latent heat of steam,is carried away by the cooling medium. (water inside tubes in a surface condenser, or droplets in a spraycondenser (Heller system) or air around tubes in an air-cooled condenser).Condensers are classified as (i) Jet condensers or contact condensers (ii) Surface condensers.In jet condensers the steam to be condensed mixes with the cooling water and the temperature of thecondensate and the cooling water is same when leaving the condenser; and the condensate cant berecovered for use as feed water to the boiler; heat transfer is by direct conduction.In surface condensers there is no direct contact between the steam to be condensed and the circulatingcooling water. There is a wall interposed between them through heat must be convectivelytransferred.The temperature of the condensate may be higher than the temperature of the cooling water atoutlet and the condnsate is recovered as feed water to the boiler.Both the cooling water and thecondensate are separetely with drawn.Because of this advantage surface condensers are used in thermalpower plants.Final output of condenser is water at low temperature is passed to high pressure feed waterheater,it is heated and again passed as feed water to the boiler.Since we are passing water at hightemperature as feed water the temperature inside the boiler does not dcrease and boiler efficincy alsomaintained.Cooling Towers :The condensate (water) formed in the condeser after condensation is initially at hightemperature.This hot water is passed to cooling towers.It is a tower- or building-like device in whichatmospheric air (the heat receiver) circulates in direct or indirect contact with warmer water (the heatsource) and the water is thereby cooled (see illustration). A cooling tower may serve as the heat sink in aconventional thermodynamic process, such as refrigeration or steam power generation, and when it isconvenient or desirable to make final heat rejection to atmospheric air. Water, acting as the heat-transferfluid, gives up heat to atmospheric air, and thus cooled, is recirculated through the system, affordingeconomical operation of the process.Two basic types of cooling towers are commonly used. One transfers the heat from warmer water tocooler air mainly by an evaporation heat-transfer process and is known as the evaporative or wet coolingtower. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  24. 24. Evaporative cooling towers are classified according to the means employed for producing air circulationthrough them: atmospheric, natural draft, and mechanical draft. The other transfers the heat from warmerwater to cooler air by a sensible heat-transfer process and is known as the nonevaporative or dry coolingtower.Nonevaporative cooling towers are classified as air-cooled condensers and as air-cooled heat exchangers,and are further classified by the means used for producing air circulation through them. These two basictypes are sometimes combined, with the two cooling processes generally used in parallel or separately,and are then known as wet-dry cooling towers.Evaluation of cooling tower performance is based on cooling of a specified quantity of water through agiven range and to a specified temperature approach to the wet-bulb or dry-bulb temperature for whichthe tower is designed. Because exact design conditions are rarely experienced in operation, estimatedperformance curves are frequently prepared for a specific installation, and provide a means for comparingthe measured performance with design conditions.Economiser : Flue gases coming out of the boiler carry lot of heat.Function of economiser is to recoversome of the heat from the heat carried away in the flue gases up the chimney and utilize for heating thefeed water to the boiler.It is placed in the passage of flue gases in between the exit from the boiler and theentry to the chimney.The use of economiser results in saving in coal consumption , increase in steamingrate and high boiler efficiency but needs extra investment and increase in maintenance costs and floorarea required for the plant.This is used in all modern plants.In this a large number of small diameter thinwalled tubes are placed between two headers.Feed water enters the tube through one header and leavesthrough the other.The flue gases flow out side the tubes usually in counter flow.Air preheater : The remaining heat of flue gases is utilised by air preheater.It is a device used in steamboilers to transfer heat from the flue gases to the combustion air before the air enters the furnace. Also G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  25. 25. known as air heater; air-heating system. It is not shown in the lay out.But it is kept at a place near bywhere the air enters in to the boiler.The purpose of the air preheater is to recover the heat from the flue gas from the boiler to improve boilerefficiency by burning warm air which increases combustion efficiency, and reducing useful heat lostfrom the flue. As a consequence, the gases are also sent to the chimney or stack at a lower temperature,allowing simplified design of the ducting and stack. It also allows control over the temperature of gasesleaving the stack (to meet emissions regulations, for example).After extracting heat flue gases are passedto elctrostatic precipitator.Electrostatic precipitator : It is a device which removes dust or other finely divided particles from fluegases by charging the particles inductively with an electric field, then attracting them to highly chargedcollector plates. Also known as precipitator. The process depends on two steps. In the first step thesuspension passes through an electric discharge (corona discharge) area where ionization of the gasoccurs. The ions produced collide with the suspended particles and confer on them an electric charge.The charged particles drift toward an electrode of opposite sign and are deposited on the electrode wheretheir electric charge is neutralized. The phenomenon would be more correctly designated aselectrodeposition from the gas phase.The use of electrostatic precipitators has become common in numerous industrial applications. Amongthe advantages of the electrostatic precipitator are its ability to handle large volumes of gas, at elevatedtemperatures if necessary, with a reasonably small pressure drop, and the removal of particles in themicrometer range. Some of the usual applications are: (1) removal of dirt from flue gases in steam plants;(2) cleaning of air to remove fungi and bacteria in establishments producing antibiotics and other drugs,and in operating rooms; (3) cleaning of air in ventilation and air conditioning systems; (4) removal of oilmists in machine shops and acid mists in chemical process plants; (5) cleaning of blast furnace gases; (6)recovery of valuable materials such as oxides of copper, lead, and tin; and (7) separation of rutile fromzirconium sand.Smoke stack :A chimney is a system for venting hot flue gases or smoke from a boiler, stove, furnace orfireplace to the outside atmosphere. They are typically almost vertical to ensure that the hot gases flowsmoothly, drawing air into the combustion through the chimney effect (also known as the stack effect).The space inside a chimney is called a flue. Chimneys may be found in buildings, steam locomotives andships. In the US, the term smokestack (colloquially, stack) is also used when referring to locomotive G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  26. 26. chimneys. The term funnel is generally used for ship chimneys and sometimes used to refer tolocomotive chimneys.Chimneys are tall to increase their draw of air for combustion and to dispersepollutants in the flue gases over a greater area so as to reduce the pollutant concentrations in compliancewith regulatory or other limits.Generator : An alternator is an electromechanical device that converts mechanical energy to alternatingcurrent electrical energy. Most alternators use a rotating magnetic field. Different geometries - such as alinear alternator for use with stirling engines - are also occasionally used. In principle, any AC generatorcan be called an alternator, but usually the word refers to small rotating machines driven by automotiveand other internal combustion engines.Transformers :It is a device that transfers electric energy from one alternating-current circuit to one ormore other circuits, either increasing (stepping up) or reducing (stepping down) the voltage. Uses fortransformers include reducing the line voltage to operate low-voltage devices (doorbells or toy electrictrains) and raising the voltage from electric generators so that electric power can be transmitted over longdistances. Transformers act through electromagnetic induction; current in the primary coil inducescurrent in the secondary coil. The secondary voltage is calculated by multiplying the primary voltage bythe ratio of the number of turns in the secondary coil to that in the primary G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  27. 27. 3.2. Purchase Management at WTPS Main purchase goods of power stations are fuels, bearings, lubricating oil, Welding rod and various spares. The important spares of original equipment are being purchased from OEM. This power station take action to purchase fuels like Coal from Coal India Authority, LSHS (Low Sulphur High Stock) and L.D.O.(Light Diesel Oil) from Indian Oil Corporation.Decisions regarding items to be purchased are taken by the Maintenance Department at WTPS. The Technical section acquires information about annual consumption, and sub store stock level. Technical section also considers other department in purchase procedure. After this procedure Technical department issues tender notice through website regarding the requirement of materials. In case of urgency of required material procedure is followed laid for emergency procurement they invite five tenders and eligible cheapest tender generally accepted to place the order for procurement technical department decide to reorder of goods or material as par seeing market trends. 3.3 Store Management at WTPS Receiving and inspection - Store department receive the material from the supplier/manufacturer after order placed - Thereafter store department check the material received in the presence of indenting engineer whether it is as per requirements or not - In case of coal, the samples are taken by WTPS chemical laboratory staff and thereafter testing is carried out by WTPS chemical laboratory as well as appointed authorised testing laboratory as third party Material arrangement - Store department arrange to keep the material at proper place for its safe storage and easily accessibility - Store department use the large number of racks to place small size spares category wise - Large size equipments are placed in bunkers/large storage place(covered place) nearby store department at WTPS - In case of Coal, storage is done in wide open place nearby coal yard at WTPS Codification - Store department arrange to carry out codification in ten digits for various spares as per the norms laid down for codification Safety measures for material G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  28. 28. - To preserve the spares in good condition, adequate measures to prevent rusting and dusting are being taken by store department by providing covers, applying anticorrosive oils etc. - Water spray is being done on huge coal piles to prevent fireIssuing and crediting the material - Store department issue the material to the concerned department as per the requirement - Store department also receive the material credited by the various departmentsMaintaining records - Computer facility is being used to maintain the various records like stock, receipt, consumption, specification of material etc with the help of “e- URJA” software developed by Tata Consultancy Services (TCS). G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  29. 29. 3.4 Inventory control system and valuationInventory management plays a strategic role in the supply chain management of power stations andaccomplishment of the business objectives, including cost efficiency and working capital optimization.The inventory management professional should have a comprehensive understanding of the inventorysystems and processes, that will enable successful balancing of availability of material with demand, andtracking of spares throughout the supply chain.Inventory Management involves the following steps at WTPS:-ABC AnalysisWhere, A means cost of goods is more than 1, 00,000. B means cost of goods is more than 10, 000 and less than 1, 00,000. C means cost of goods is less than 10, 000 .-XYZ AnalysisWhere, X indicates that importance goods. Y indicates that goods having less important. Z indicates that not essential goods.-FSN AnalysisWhere, F stands for fast consumption goods. S stands for small consumption goods. N stands for none consumption goods. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  30. 30. CHAPTER 4 FINANCE AND ACCOUNTSG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  31. 31. 4.2 Depreciation analysis for FY 2009-10GSECL has claimed Rs. 516.00 crore towards depreciation charges in the Truing up for FY 2009-10. Thedepreciation approved for FY 2009-10 by the Commission in MYT order dated 17th January, 2009, inthe Tariff Order for FY 2009-10, in the APR for FY 2009-10 and now claimed by GSECL are as given inthe Table below SOURCE: www.gercin.org/ GSECL has proposed Rs. 48 crore towards loss attributing to uncontrollable factorsbecause of difference in the actual capitalization during FY 2009-10. SOURCE: www.gercin.org/4.3 Interest and Finance charges for FY 2009-10The GSECL has claimed Rs. 338 crore towards interest and finance charges in theTruing up for FY 2009-10. The interest and finance charges approved for FY 2009-10by the Commission in the MYT order, in Tariff Order for FY 2009-10, in APR for FY2009-10 and now claimed by GSECL as actual are tabulated in Table below SOURCE: www.gercin.org/ G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  32. 32. GSECL has claimed Rs.11 crore towards loss attributing to uncontrollable factoowning to the differencein the actual capitalization. SOURCE: www.gercin.org/4.4 Return on Equity for FY 2009-10GSECL has claimed Rs. 328 crore towards return on RoE in the Truing up for FY2009-10. The return on RoE approved for FY 2009-10 by the Commission in the MYTorder dated 17th January, 2009, in the Tariff Order for FY 2009-10, in APR for FY2009-10 and now claimed by GSECL as actual are given in Table below SOURCE: www.gercin.org/GSECL has submitted that the comparison of actual value for return on equitycomputed on the basis of opening equity for FY 2009-10 and addition to equity duringthe year on account of funding of capital expenditure against the return on equityapproved in the APR for FY 2009-10 in the Tariff Order dated 31st March 2010resulted in a gain of Rs.1 crore. This variation of Rs. 1 crore has been attributed touncontrollable factors. The station-wise Return on equity claimed by GSECL in thetruing for FY 2009-10 and the controllable gains/losses are given in the Table below G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  33. 33. SOURCE: www.gercin.org/SOURCE: www.gercin.org/ G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  34. 34. SOURCE: www.gercin.org/ 4.5 COSTING METHOD Generation Costs - Variable (Energy) and Capacity (Fixed) Charges Variable Costs (Energy Charge)The performance parameters for different stations are discussed and approved forthe control period fromFY 2011-12 to FY 2015-16 in Chapter 6. The variable costs(mostly fuel cost) depend on the costparameters such as GCV of different fuelsused, mix of fuel and price of fuel. GSECL generating stationsrun on coal, lignite andgas as base fuel. For some of the coal stations, a mix of indigenous, washed andimported coal is used.Inthe case of hydro stations no fuel costs are involved. However, the energy chargeand fixed charge forhydro stations shall be recovered in accordance with the Regulation 60 of the MYT Regulations 2011.Itis basically decided to adopt the cost parameters (except mix of coal) as actually obtained during FY2009-10 for the control period FY 2011-12 to FY 2015-16 with the provision to pass on any difference infuel cost to the consumers due to variation in cost parameters during the MYT period as per the FPPPAformula.GSECL projections and Commission‟s analysis on the mix of coal, Wt. Av. GCV of fuels to beconsumed and Wt. Av. price of fuel for different stations are discussed below: G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  35. 35. Mix of CoalGSECL projected the percentage mix of coal for different stations for the controlperiod as given in Table below: SOURCE: www.gercin.org/GSECL submitted that as stated earlier the mix and Wt. Av. GCV of coal is projectedbased on the annual contracted quantities as per the fuel linkages for indigenous andwashed coal and targeted quantities of imported coal.Wt. Av. Prices of FuelGSECL projected the Wt. Av. prices of coal for different stations for the control periodas given in Table below G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  36. 36. SOURCE: www.gercin.org/GSECL stated that the prices of coal are projected based on the annual contractedquantities of indigenous, washed coal and targeted quantities of imported coal andalso with an escalation factor of 5% each year. SOURCE: www.gercin.org/ G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  37. 37. CHAPTER 5 HUMAN RESOURCESG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  38. 38. 5.1 Organization structure of WTPSSOURCE:DGM(WTPS) G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  39. 39. 5.2 Promotion and Increment policesAs per the general standing order 4 of the class 1 to the class 4 the employees are selected as per thenorm. The basic promotion of the GSO as per the section of 315 for the class 3 and 4 for the powerstationPosition of the Pay scale Class Requirements ExperienceemployeeFitter Grade II 980-2280 Ass Fitter Grade Should have Should Have minimum 3 Lower Category acquired years of Asst Fitter Grade certificate of ITITechnical grade NA Channel Fitter Minimum out si Should have three years Grade 4 dev grade of experience in as the certificate post of the Asst manager in the Steal plantThe above table is as per the seniority as on the effect of the 1-4-2011 for the class 4 to class 1 and class3 to class 45.3 Recruitment and SelectionThe recruitment of this industry is done in the following ways mention below1) Through the promotion of the direct employment.2) It can be done through the employment newspaper.3) By give the advertisement in the local news paper for the post and the position and the pay scale.4)It can be recruited through the online where the advertisement or the current openings are mention onthe basis of that the employee applies through it. The rate of the daily allowance and the revision of thepay scale is updated every year. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  40. 40. 5.4 Salary structure Sr Existing GUVNL Pay Revised Payscales Weightage NO scales 1 2 3 4 1 2750-5215 7300-17940 2100 2 3050-59855 8100-19870 2400 3 3200-6905 8800-20940 2800 4 3400-8300 9700-21710 3300 5 3600-9350 10100-22000 3400 6 4000-10025 11300-22470 3800 7 5000-10525 13600-31300 4300 8 6500-11750 17300-38610 5200 9 8000-13600 21200-42000 6250 10 8500-14250 21900-43350 6000 11 10400-15525 27000-44710 7600 12 1300-18600 41200-70270 8700 13 16000-20050 48590-75900 NA 14 18400-22400 54700-77000 NA G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  41. 41. CHAPTER 6 BUSINESS STRATEGY AND OUTLOOKG.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  42. 42. 6.1 SWOT ANALYSIS This SWOT analysis is on the basis of GUJART STATE ELECTRICITY CORPORATIONSWOT analysis refers to a scan of the internal and external environment of an organization. Sucha scan highlights an organization‟s strengths & weaknesses (internal scan) and the opportunities& threats (external scan) from the business environment. The SWOT analysis enables anorganization todevelop a strategy that seeks to address its weaknesses and build on its strengths to capitalize on theopportunities available to it.The SWOT analysis provides an opportunity to understand an organization‟scapabilities andresources and therefore, provides key input to strategy formulation and selection. TheSWOT can also be utilized for organizational development activities as it brings to fore the areas thatneed improvement.ApproachThe SWOT analysis for GSECL has been carried out based on our assessment of the respectivecomponents – that is – Strengths, Weaknesses, Opportunities and Threats. Strengths andweaknesses ofGSECL have been identified based on operational and financial performance of the company and ourassessment of key business processes and human resource aspects.Opportunities and threats have beenidentified have been identified after analyzing the business environment, potential competition and theissues and challenges that face the company in themarket that is evolving rapidly and will continue to doso in the foreseeable future. The company‟s business environment has been analysed in terms of sectorreform and regulations,EA 2003, Government of Gujarat role in the sector and business relationship withother important market playersStrengths1. Clean Balance Sheet – As per the proposed Financial Restructuring Plan, the accumulated losses ofall the sector entities will be set off against reinstatement of assets and therefore, all the sector entitieswill start operations will clean balance sheets. The clean balance sheet provides an opportunity toGSECL to leverage its balance sheet.2. Financial Management –a. Interest and Financing Costs - The average interest rate of debt liability allocatedof GSECL is to be around 10.50%. Top management and finance managers of theGSECL have been able to restructure high cost debts of about Rs 1200 crores leadingto a saving of Rs 80 crores.b. Fuel Costs are the biggest cost component for GSECL contribution about 78% of the G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  43. 43. total costs. GSECL has been making persistent efforts to reduce the fuel costs (per Kcal)and has achieved significant reductions in cost.c. The fuel cost reduction measures include washed coal utilization, imported coal usage,persistent negotiations with suppliers. Such steps and the results therein indicate a strong understandingof the markets and excellent negotiations.3. Operations Know-how – GSECL boasts a strong operational know how in form of experiencedengineers at power stations. GSECL rotated its engineers between power stations and also to corporateoffices, imparting greater technical knowhow and widening the skill base of the concerned.4. Entrepreneurial Orientation – GSECL management has taken significant strides in new areas likecaptive mining, usage of washed coal, negotiating with suppliers, bringing in better practices, fly ashutilization and have also been able to achieve yearon- year operational targets to an admirable extent.Such entrepreneurial top management shall be a key strength for GSECL in the future as well.Weaknesses of GSECL1. Accounting and Record Management – Departmental record keeping systems of GSECL havedeveloped into stand-alone systems as inter departmental data validation has not been maintained.Therefore, the information available with various departments, especially with regard to numeric data,does not match and the differences are seldom reconciled. In order to be able to take quick & firmdecisions and to monitor the progress, management as well as the executives of the company requireaccurate information. Therefore, this is an area where significant improvements required.2. Legacy Systems – The IT systems implemented at GSECL are again stand alone and of considerablevintage. The same needs to be updated with the latest systems for integrated information management.3. Lack of Commercial Focus in Business Units – Though the technical knowhow amongst powerstations staff is commendable, the focus of operations has been limited to technical performance of thestations. The same is a result of lack of commercial focus in state electricity boards. Now, withcompetitive forces gaining ground and introduction of financial mechanism to incentivize grid discipline(ABT Regime), the operating as well as managing staff at power stations needs to be aware andresponsive to commercial.4. Operations and Maintenance Performance – Inspite of significant know how, the operatinperformanceof the power stations has not been up to the mark. A large part of the reason for sub-optimal performanceis the vintage of the plants. Other than that lack of sufficient spare capacity and paucity of funds resultedin poor operation and maintenance practices, which have now become a vicious circle. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  44. 44. Opportunities1. Sale of power outside Gujarat – The Electricity Act, 2003 provides for open access to transmissionnetwork and identifies trading as a separate activity. This provides significant opportunity for GSECL tosell power outside the state to otherutilities or even to high value consumers. For the same, the companymight look at tying up sale of traded power through the state owned power trader, GUVNL.2. Joint Ventures present a suitable opportunity to bring in private and public partnership in generation.Specific advantages of joint ventures include reduction in capital requirements for power sector, greaterefficiency of private management and perceived payment security to private investors. Joint ventures canalso be explored with other state utilities especially the ones which have fuel reserves.3. Captive Mining – Fuel quality, cost and reliability are major issues facing the power sector, especiallygenerating companies that are largely dependent on coal. Under the Coal Mines (Nationalisation) Act,1973 coal mining is exclusively reserved for the public sector. By an amendment to the Act in 1976, twoexceptions to this policy were introduced viz. (i) captive mining by private companies engaged inproduction of iron and steel and (ii) sub-lease for coal mining to private parties in isolated small pocketsnot amenable to economic development and not requiring rail transport, were allowed. The Act wasfurther amended w.e.f. 9.6.1993 to allow private sector participation in coal mining for generation ofpower, for washing of coal obtained from a mine or for other end uses to be notified by Government fromtime to time. This presents an opportunity for GSECL to bid for suitable mining blocks as the sameimprove the energy security position of the state and likely costs too.4. Fly Ash Utilisation – A useful bye-product, ash in the form of fly ash, bottom or pond ash is availableat the Coal and Lignite based thermal Power Plants. Ash in its natural form may not be free from likelyenvironmental hazards. The protection from environmental hazards that can be anticipated necessitate ashutilization in a variety of ways. It needs to be utilized in various ways and applications. Further,Indigenous coal has high ash content, sometimes as high as 40%. Therefore, ash handling is amajor area of concern for most coal based power stations. Till recently, fly ash was utilised for landfills,raising ground levels and land reclamation as well as for cement production. However, none of theseactivities were in economic interest of the generating companies. Going forward, GSECL needs to look atrecovering handling and administration costs for fly ash disposal.5. Integrated Information Management – The erstwhile GEB has initiated the process of implementing anend-to-end IT solution for the sector. The solution will now, post unbundling, be implemented across allcompanies on a common platform. The implementation presents an opportunity to change the wayGSECL does business as it holds the key to its effectiveness and the efficiency improvements it bringsabout and therefore, should be taken seriously. A key component of the implementation process is the setof teams formed to assist TCS, the implementation agency, instudying the existing system and arriving at the re-engineered business processes.Threats1. Captive Power Generation – Generation de-licensing and open access totransmission that is allowed byEA 2003 would provide the opportunity for largeconsumers to build their own plants to meet theirconsumption needs and sell excesspower in the market. The national tariff policy further accentuates thethreat bysuggesting captive power plants as a source of power for state utilities. This is a realthreat toGSECL as captive generation is economically feasible and providessignificant financial benefit comparedto the industrial tariffs in the state. The new provision for group captive generation has heightened thethreat substantially.GSECL will mainly be affected due to lower PLF and therefore, lower efficiency ofthepower plants.2. Cheaper Sources of Power – With significant capacity addition across thecountry, GSECL plants arelikely to fall further below in the merit order and therefore,face serious competition. Considering the G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  45. 45. distances from coal sources, limited hydropotential and increasing process of gas, GSECL needs to takesteps to reduce fuelcosts and improve operational efficiency in order to be able to face competition.Traded power sought as an opportunity in previous section, doubles up as a threat toGSECL.3. Regulatory Provisions – As the regulatory provisions get stricter by the year,GSECL needs to ensurethat such targets are met, thereby avoiding financial lossesdue to under performance.4. Fuel Supply –a. Coal - With the opening up of generation function to private sector and capacityaddition by state andcentral sector, Coal India Limited and Neyveli LigniteCorporation Limited, the major producers of coaland lignite in the public sector, areexperiencing resource constraints. The coal reserves of the country areenough to lastfor another 230 years. However, the production is abysmally low and simply notenough to meet the growing demand. The much-needed reforms initiated in thecoal sector have hardlyfound takers within the industry. It is unlikely that the stateowned companies will either give up theirmonopoly or bring in the requiredinvestments or efficiencies into the sector.b. Gas has emerged as a new frontier for energy supply in the country. The demand forgrowth is likely togrow rapidly for next decade at the least. Current supply positions,however, are extremely limited.Availability of gas, however, has also been tackledthrough imports of RLNG at Dahej and proposedimports from other LNG terminalsunder development. Development of transportation infrastructure and pricingmechanism appear to becritical issues other than availability.c. The above developments are likely to have an impact on fuel prices as well asquality. Therefore, fuelprices, quality and assurance appear to significant forces ofthreat for GSECL.5. Environment Regulations – Changes in environmental regulations could createfinancial burdens toGSECLL that may render its plants, especially coal-fired plants,less competitive due to higher operatingcosts to control emissions, the costs ofrehabilitation.6.2 FUTURE EXPANSIONPower is an index of the State Government development. If the state is self sufficient in powergeneration, its industrial development, agriculture and other sector will flourish. Government ofGujarat has rolled out ambitious power plants in the state and GSECL is going to install new PowerPlant in the State.GSECL has also achieved the financial closure for an amount of Rs. 1775 Crores for its 500 MW coalbased power station from M/S Power Finance Corporation Limited New Delhi and EPC contract ofthe project has been awarded to M/S BHEL. This new capacity is expected to be commissioned inthe FY 2012-13.Investment PlanInvestment Plan forms a critical part of business plan for a corporate entity and even more so for agenerating company considering the size of projects. Investments in a generating company arelargely in three areas –1. Investments in New Capacity Addition2. Major Renovation and Modernization Projects3. Minor R & M.Need for InvestmentsThe need of investments by a generating company arise mainly due to the following reasons–1. New Capacity Additiona. Rising Demand - The state of Gujarat has huge latent demand that is likely to be cateredby the distribution companies in the near future.b. Replacement of old plants – Most of the plants owned by GSECL are of considerablevintage. GSECL needs to look at options to replace the same with modern plants toimprove efficiency and reliability.2. Efficiency Improvement for Ageing Plants (Renovation & Modernization) – In the context of G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  46. 46. limited financial resources and in order to bridge the gap between demand and supply,optimum utilization of existing installed capacity in the country to maximize the generationthrough Renovation & Modernization (R&M) of existing power plants is considered to be themost cost effective option. R&M of these plants will require significant investments that needto be factored into the investment plan of the company.Elements of Investment PlanGSECL projects department has prepared a perspective plan for capacity addition as well asrenovation and modernization of existing stations. This section discusses the investment plan andthereby, determines the quantum of such investments along with the probable sources of financeConclusion WTPS is biggest coal based thermal power station comprising of seven units, each having 210 MWpower generating capacity. This power station is ISO 9001 and 14001 certified. Well establishedcomputer management system is working effectively in this power station. Functioning of Store,inventory, purchase, account, HR etc. are discussed at site and found that its management followssystematic procedure which helps the power station in performing up to the mark. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  47. 47. BIBILOGRAPHYEr. Nath Rakesh;Paper „Power sector reforms-sharing of resources is the key to economical growth andsucess‟;Octobar 2003Nag P.K. „Power plant engineering „; 2005Power ministry of India; „Annual report 2010-11‟Websites:www.gsecl.in/www.powermin.nic.inplanningcommission.nic.in/www.coal.nic.in/www.ntpcindia.com/www.cercind.gov.in/www.cea.nic.inwww.indiainfrastructure.com/www.indiacore.comwww.gercin.org/www.indiaenergyportal.org/overview_detail.php G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  48. 48. ANNAXURES G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
  49. 49. G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT

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