Inventory management in thermal stations in andhra pradesh [www.writekraft.com]

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INVENTORY
MANAGEMENT IN
THERMAL STATIONS
IN ANDHRA PRADESH

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INTRODUCTION
The economic development of any country irrespective of its size mainly depends upon the development of the power sector,
which in fact is a key indicator of the nation's overall economic development. Power is vital input not only to all household activities, but
to economic development as well. In fact it is the fuel of the economic progress in all sectors, not only agricultural and industrial but all
allied areas. Economic progress depends very much upon how successfully and profitably a country manages its power sector.
Agriculture, industry and other core areas of economy ultimately depend for their development and success on the availability of
adequate power constantly and uninterruptedly throughout the year, How important is power sector in the economic development of a
country, apart from other factors, may be known by taking into considcralion its power consumption, If power consumption by all
sectors is seen to increase, then the index of economic development as a measure of its progress is also found to increase. Usually the
correlation between consumption of power and the growth of economy is taken as a measure of progress.
The production of electricity is a basic indicator of a country's size and level of development in all spheres. Somc
countries are exporting electricity on a massive scale and others are importing it on a large scalc. In India most of the power
consumption is by the agricultural sector, where the rate of revenue is very low. Expanding the supply of electricity to meet the
growing demand of ever increasing urbanised Indian economy without incurring unacceptable costs is a major challenge to it.
People's standard of living depends on their use of energy in general a d access to electricity in particular. It is a major factor on
which the

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policy-makers have to seriously focustheirattention and direct their efforts.
Compared with severalothercountries ofthe world, India is lagging behind
manyin terms ofproduction aswellasper capita consumption of energy.
Origin o f Electricity
Electricity occurs naturally in the form of lighting and is highly versatile.
because it can be carried over long distances and converted easily into many
other forms of energy. Almost any form of energy can be converted into
electricity. The most common methods of producing electricity are those used in
batteries or generators. Converting chemical energy into electric energy I
generates power from batteries. Most generators convert heat energy into electric
energy. Some generators exploit such natural resources as sunlight or wind or
water to obtain electrical energy1.The year 1800 is significant bccause of origin
of electricity, as Alessandro Volta of Italy, starting a marvelous phase of
convenient, reliable, secure and happy life style, invented the electric baflery.
Volt, a unit of electromotive force (difference of potential that would carry one
ampcre of current against one ohm resistance) is named after him.
James Watt's improveddesign of steam engine in 1765, brought to light the use
of stearn energy to move a heavy vehicle. Watt, a unit of power to rate output of
electrical devices, is named after him. William Sturgeon of Britain designed electro-
magnet in 1824, followed by the first major step in the generation of electricity in the

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Royal Institute of London in the year 1831. When Michael Faraday discovered that if
a bar magnet was moved near a coil of wire, electric current was produced in the coil.
William Siemens of Britain invented Electric

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Furnace in 1861. Zenobe Grarnme of Belgium in 1873 and AC motor by
Nikola Tesla of United States of America invented D.C. motor in 1888. All
these inventionsrevoiutionised theindustry.Thomas Alva Edison of United
States of America (U.S.A) invented Electric lamp in 1879, starting a new
phase ofactivity in all spheres.With this invention,human beingcould work
round the clock,thereby improved his standard of living and quality of life.
Electricity is the formof energy that enables charged particles such as
electrons to move. Moving charge is current electricity, either DC or AC.
Dircct Current (D.C) flows in one direction only, while Alternate Current
(A.C) changes direction many times every second. Transfer of energy
brought aboul transformation in the well being of man. Windmills convcnt
wind cncrgy into electricity throughgenerator.Solarcells convert Sun's rays
(light) into electricity and Light Emitting Diodes (LED'S) and bulbs do the
opposite by convertingelectricity into light. Battery and solar power can be
stored in very minute quantumfor short periods with limited efficiency.
Historical Background
Men of pre-historic times did not know about electric poweS. They are
dependent on wood for cooking, lighting and for heating purpose, and were consuming
limited fuel. Now the scenario is different. Coal, oil, natural gas etc. and conventional
energy sources dominate the present energy scene. Traditional power included motive

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power and heat such as the muscular energy of humans, and work of draught animals.
Albert Einstein in his equation E = mc2 proved that energy

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(Energy released = mass decomposed x square of velocity of light)
and matter we interchangeable. Every thing that exists on earth can
directly or indirectly be attributed to solar energy. Scientists
believe that the first living cell was formed. When energy from
lighting combined with other elements on earth. Naturally, man
also owes his existence to that cell1.
Subsequently, man discovered the technical to control fire. This made him
God's special creation, and led to his supremacy over all other living things.
Animate (living beings) energy, the source of 18Ihcentury was gradually
replaced by inanimate energy. Coal replaced wood and formed the basis of
industrial revolution in late 19Ihcentury and early 20Ih century. Sources of
energy can be sub-classified as commercial and non-commercial encrgy. Coal,
lignite coke, oil, gasoline (petrol), kerosene and natural gas as thermal power and
Hydel power are made available on commercial scale i.e., in huge quantum
required by large population. Firewood, charcoal, lumber mill waste, cowdung,
straw, agricultural waste, wind power, sunlight (to dry agricultural products) and
streams available locally at no cost are used as non-commercial energy sources.
As the demand of energy outstripped the supplies from conventional sources,
more and more non-conventional forms of energy are being harnessed.

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Important methods of illumination were developed in 20Ihcentury, replacing
old methods and improved the quality of life. After two world wars, liquid ftels
recorded phenomenal growth. This was followed by electrification on a big scale.
Many western countries have developed their power generation systems using

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liquid fuels, coal, hydel storage capacities and also nuclear energy. Rapid
progressin industrialisation was achievedthmugh distribution ofpower that
was generated. Agriculture and allied activities, transport vehicles and
related tools also gotthe necessarysupport fromdeveloped power systems.
Generation is the power produced by natural or artificial method. Energy
is generated by the natural force of water (hydel) pressure of wind (wind) solar
energy (solar), tidal waves and also deep soil (geo-thermal). Heat energy
(thermal) is obtained by burning coal, lignite, oil, natural gas, naphtha, biogases
etc. Energy is also generated from atomic fusion and fission (nuclear) simple
rural technology oriented biogashiomass and other non-conventional sources.
Importance of Power
Power is one ofthe most critical inputs in modern societyand finds its
right place in the list of core sectorindustries, Government of India, through
industrial Policy Resolution 1956, included Power generation, transmission
and distribution under category one, in the concurrent list allowing only
Centralor State Governments to operate in powersector.Thus private sector
has no entry into vital sector. The exceptions were only a handful like
Bombay Suburban Electric Supply Company (BSES) an enterprise of' Tata
group,which was already in the field of' generation and distributionof power

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of Mumbaimetropolitan area and Calcutta Electric Supply Company Limited
(C.E.S.L).After 35 years this sector is opened upto private sector in 199 I .

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Role of Power in Economic Development
Nowadays, power plays a vital role in every sphere ol'nctivity.
Innumerable gadgets are run on electricity, which are indicators etc., at' thc
quality of life. In do~iiesticsector, power is used for lighting, cooking, ceiling and
tablc fans, water heaters, room heaters, air coolers, air-conditioners, refrigerators,
ovens, electric irons, electric cookers, washing machines, vacuum cleaners
motors for water supply, wet and dry grinders, audio-visual equipment like radio,
tape recorder, tslcvision, video cassette rccordcr, video casscuc player, and now
the personal computers with or without internet and e-mail facilities. In
commercial complexes, especially multistoried structures, lifts are vital to reach
highcr floors, Modern coniforts are fixed in them. Agricultural pump sets, electric
trains, life-saving equipment in hospitals like scanner, laser equipment etc. need
electricity. Tllc list of power consuming equipment is un-ending, With the
passage of time, more and more new equipment is entering the market, increasing
power ~onsumptionby 10% per annum.
Utilisation of Power
Power is utilised by many categories of consumers. Industrial application of
power has no bounds. Different kinds of machinery are in use in large, medium and
small-scale industries. Industries have been the major consumers of power to run

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computers to robots. It is now possible to contact and communicate from one point in
the universe, through telephone, Internet, e-mail, e-commerce, video conferences

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etc. Distance between places has a little significance now, due to
the development of modem communication systems. Satellites
supporting all these channels of communication are controlled
from earth stations, with the help of both conventional and non-
conventional power systems. Power Development in the World
The Power situation in the world is giving a unique picture in the power
development scenario. Because of varied geographical, national situat ions. The power
situation in the world is not same among all the countries, different picture and it
prevails for various reasons. The world per capita use of energy is 1.9 times whole
equivalent (TCE). Developed countries like USA, UK and Japan have their respective
per capita consumption at a much higher level of 1 1.1 T.C.E., 5.4 T.C.E and 3.2 I'.C.E
respectively, while developing countries like China and India have a per capita energy
consumption of 0.5, T.C.E. and 0.2 T.C.E respectively4. A lot of change has bcen
taking place the world over in the consuniption of energy. High-income countries
consume energy 3 112 times that of Europe and Central Asia. The total energy use by
South Asia and Middle East and North Africa is countries use more energy than South
Asia. But the Sub-sabaran Africa consumers less power than half of South Asia. The
U.S is the biggest consumer of commercial the erstwhile Russian federation was a
large consumer of commercial energy. But India, Canada and the U.K. consume
almost the same quantities of energy, which indicate the stage of economic

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development of each of the countries. It is clearly noticed that rapidly industrialised
countries have been increasing their consumption

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of energy considerably. India has registered a high average growth
of 4.4
The world development report 2000 world development report 2000 world
development indicators-1988 clearly specify the world position of power is
terms of percapita use.It points out that the use of electrical energy is very
high in the developed andsome ofthe Gulf countries6. The percapita use of
the lJ.S was only one half of that of Norway, Japan, Belgium and
Switzerland consun~ed7000 Kwh percapita each in the year 1997.
India has now low energy consumption but high-energy intensity. ' h e
energy consumption percapita(toelpersons) in India was 0.1 12 while it was 0.336
in Asia and 7.67 in USA. In 1991 there is lot of variation in terns of energy
consumption between developing and developed countries. In term of electricity
intensity it was 462 in India, 385 in Asia and 503 in USA during the year 1991
and it shot up to 597 in India 406 in Asia 384 in USA during the year 1996'. It is
clear that while the energy intensity has been increasing year afier year in lndia
and it is considerably getling reduced in USA over a period of time. But in other
Asian countries it exhibits a mixed trend. It indicates that through there is a
considerable growth of rate power generation in lndia over a period of time, it
energy requirement have been so eronomously increasing that there is no match
power generation and the demand for power. Unless adequate power is generated

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to meet the requirements of all sectors of economy, the economic progress will be
invariably declining.

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Table - 1.1
Electricity Generation in the World*

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J ; ..
Source:

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Based on gross output.
Bracket figure shows total share of the country in percentage.
BP Statistical review of World Energy 200 (bp.com)
The power generation situation in the world is prcsentcd in Table No.i.1. It
is observed that different countries are having different power situation during the

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years 2000 - 2003. It is also observed a mixed trend in electricity generation in
various countries.

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Table - 1.2
World Total Net Electricity Consumption, 2002
SI.No. Country Name
1. United States
2. China
3. Japan
4. Russia
5. Germany
6. India
7. Canada
8. France
9. Brazil
10. United Kingdom
11. Italy
12. Korea, South
13. Spain
14. Australia
15. Mexico
16. South Africa
17. U
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18. T
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a
n
19. S
w
e
d
e
n
20. S
a
u
d
i
A
r
a
b
i
a

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Billion Kw h
3659.99
1456.60
970.96
779.99
512.91
510.09
487.30
414.70
351.89
343.94
293.90
267.44
218.37
195.59
189.66
189.36
154.35
147,44
138.07
128.51
Source: World Factbook, 2002.
The details aboutthe totalnet electricity consumption in the world arc

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furnished in Table ~0 . 1 . 2 .It can be observed from the table that lndia is having a
net electricity consumptionof510.09 billion Kw h whereas USA is having
the recorded consumption 3659.99 followed by China, 1456.60 billion Kwh.
Accordiq p wprld faqt book 2002 lndia ranked 6th position in terms of totalnet
electricity consumption in the year 2002.

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Table -13
World Power Plants Fuel Wise (%)
Financial Year 2000-2001
14. South Africa 93.5 1.1 5.5 0.0
15. Russia 64.3 20.5 14.5 0.4

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16. Mexico 78.7 14.2 4.2 2.9 ,
Source: World Factbook, 2002.
The details about world power plants fuel wise for the financial year
2000-01 is presented in Table No.1.3. It can be observed fromthe tablc that
the India is having higher fuel cost when compared to other countries.
Power Situation -Important Landmarks in India
As electricity was introduced in India in 1899, the year 2005 marks the
above century of its existence in the country. India's energy requirements on the
eve of independence in 1947 were very modest and were largely met by coal. The
energy scene was dismal. The per capita consumption of energy was 15 kgoe
(Kilogram oil equivalent). Installed capacity (for power generation) was only
1362 MW at the time of independence (1947), coal production merely 30 million
tones and crude oil production was just 0.225 million tons. 80% of non-
commercial energy fuels consisted of firewood, crop residues and animal waste.

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Table 1.4
Generation -All India

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Source: Annual Report 1997-98, 2000-01, 2002-03, 2004-05
of Ministry of power, Government of India.
1. Trend value y= atbx, a = Zyln, b = x x Y ~ x 2
2. Growth rate based on chain base system.
The all India level trend in generation of powcr from 1990-
91 to 2004-05 (Feb 05) is presented in Table No.1.4. It can be
observed from the table that in generation of power over the period
of time recorded not less 100 percent over the period of time. It is
also observed that there is standard growth rate over a period of
time without disproportionate change in generation out of much
efforts made by the government to push up the power generation
to meet ever increasing demand for power.

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Table -1.5
Installed Capacity - A11 India

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S'IL8Z
"
-
0 5 6 SLZLZ 0'5 O ' W I
- -
0'001 0982
w a t z l -z

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0'0982 0.0 0.0 0.0 0'0
0-0

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I I I I I I I
lW0.L 1 (%I 1 PQ!M I (%) I JaaIanNI (%I I 1emJJq.LI(%I ( PPLH
'ON'S
(I=UO!=AOJA) Innz L u ~ ~FIEewuo sv

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The installed capacity of power generation among various states in India is
resented Table No.1.5. It is self-explanatory and gives clear picture about
installed capacity of various categories in India. The plan wise growth trends in the
installed power generation capacities among Hydel, Thermal. Nuclear categories is
presented Table No.1.6. It can be observed clearly that over the period of time more
focus was given on the development of thermal stations in our country.
Table -1.6
Growth of All India installed electricity
Generation Capacity (Plan-wise)

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Source: Annual Report, Ministry of Power, Government of India: 1997-98;
, 2000-01,2004-05.

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Table - 1.7

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Source: 1) "Annual Reporton working of ElectricityBoards by PlanningCommission, NewDew May, 2002.

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Table No. 1.7 provides statisticalinformation on theinstalled capacity,
generation and consumption at all India level. It provides infom~ntionfrom 1990 -
91 onwards to 2002-03.
Table 1.8
Generation Mix - All India

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* Includes diesel, gas stations and non-utilities
** Provisional
Source: 1. Power Development (Statistics) of Andhra Pradesh 2003-04.
2.All India Electricity StatisticsGeneralReview 2002-03.
Table No.1.8presents thegenerationmixat all India level from 1950-51 to
2002-03.It provides clearly thepercentage change over theperiod of timein power
generation mix among hydro, thermal, nuclear and wind
categories,

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S.
No.
1. Domestic
2. Commercial
3. Industry
4. Agriculture
5. Others
Source : 1.
2.

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Consumption -All India
Share as percentage to Total
1950- 1960- 1970- 1980- 1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1-998- ,999- 2800- 2001- 2002-
51 61 71 81 91 92 93 94 95 96 97 98 99 00 01 02 03
12.60 10.70 8.80 11.20 16.80 17.20 17.27 16.41 18.50 15.85 17.25 17.39 19.50 19.95 21.28 22.03 24.55
1.75 6.10 5.90 5.70 5.90 5.70 5.79 4.19 6.10 4.45 4.50 4.76 4.77 4.94 5.17 5.25 7.49
62.60 69.40 67.60 58.40 44.20 42.30 42.24 34.70 38.60 33.38 32.85 33.54 31.70 32.60 30.50 30.18 33.85
3.90 6.00 10.20 17.60 26.40 28.00 28.20 30.44 30.50 12.84 32.08 31.22 30.97 29.91 29.14 29.69 24.88
19.15 7.80 7.50 7.10 6.70 6.80 6.70 10.51 6.30 13.78 13.32 13.09 13.06 12.59 13.92 12.85 9.23
Annual Report onWorkingof Electricity Boards andElectricity Departments by PlanningCommission, NewDelhi.
May 2002.

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All India ElectricityStatistics General Review2002-03.
The pattern of electricity consumption at all India level amongvarious categories is presented in Table No. 1.10. It clearlyshows the how the electricity
consumption has made among various categories - domestic, commercial industry, agriculture and other sectors, I95 1-52 to 1992-93.
Total growthrate at 7 1%upto 1960-61, 68% upto1970-71, 57% upto1980-81 in thetotal production of energy reflects marginal increases only. A revolutionary
growth rate of 120% is recorded in the latest decade, due to all-roundgrowth andincreasedawareness anddemandfrom all sectors of theeconomyforincreasedpower.
Energy demand - supply gap in tndi is about 20%.

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Table 1.10
Energy Surplus 1 Deficit

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Source : I . A11 India Electricity Statistics General Review, 2002-03
2. Annual Reporton Working of ElectricityBoards andElectricity
Departments by Planning Commission, New Delhi,May 2002.

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All India energy ~urplus1 deficit and percentage and peak surplus and
deficit in percentage from 1991 -92, 1996-97 and 2001-02 are shown in the Table
1.10.
Table 1.11
Power Supply and Shortages
I I
Rajasthan 2661 1 26486 -125 -0.5
Uttar Pradesh 45552 40399 -5 153 -1 1.3
Uttaranchal 4197 4108 -89 -2.1
Chattisgarh 10147 9876 -27 1 -2.7
Gujarat 57171 50292 -6879 -12.0

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Madhya Pradesh 32744 ,28417 -4327 -13.2
Maharashtra 87933 78966 -8967 -10.2
Source : Power Development (Statistics)of AndhraPradesh 2003-04

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Table 1.1 1 Presentsrequirement,availability, surplus and deficit
and its percentage shown in the table for various states in the India.
Table 1.12
Peak Demand and Deticit 2003-04

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Bihar 973 788 -185 -19,O
Jharkhand 544 475 -69 -12.7
Orissa 2125 1987 -138 -6.5
West Bengal + Sikkim- 3836 3652 -184 -4.8
Average
,
- 4357.86
3813.86 -544 -9.28
Source : Power Development (Statistics) of Andhra Pradesh 2003-04
23

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The Table No.1.13 presents the details about peak demand,peak met.
s~rplus/deficitand its percentage in various states.
The progress in rural electrification at All lndia is presentedTable No. 1.13.
Table 1.13
Progress in Rural Electrification - All lndia

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Source : I .
2.

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Annual Report
on Workingof
Electricity
Boards and
Electricity
Departments by
Planning
Commission,
New Delhi,
May 2002.
All India
Electricity
Statistics
General
Review 2002-
03.

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10th Plan outlay for central Power Sector
The planning commission has allocated a total plan outlay of Rs.143399
crores for the Ministry of Power This would include a Gross Budgetary support
of ~s.25,000and the remaining Rs.1,18,399 crores would be internal Extra
Budgetary Resources (IEBR). The corresponding figures for the Ninth plan
were about Rs.14,900 crores and Rs.30,648 crores respectively. The Gross
Budgetary support in the 10th plan has thus been increased by more than 67%
of the total plan figures in the 10th plan has increased by more than three time
sub-allocation of the approved plan outlay. The capacity addition sector wise
and type wise presented in Table 1.14.
Table 1,14
Capacity addition now anticipated during lothPlan (as on 3othJune 2005)
Sector-wise
Under
(in M W)
Original Units
Works to be Overall capacity
awsrdedlun addition nm
target commissioned
execut~on
dn appro,,al anticipated
Central 22832 7495 10842 1450 19787

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State 11157 3286 8954 0 12240
Private 7121 . 718 4181 0 4899
Total 41110 11499 23977 1450 36926 .
Including 2520 MW nuclear projects under construction

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Type wise
Original Units
Und~r
Works to
be
Overall
capacity
awarded11111 addition now
target
commissioned
execut~on
der
approval anticipated
Thermal 2541 7 6519 15262 1450 23231
Hydro 14393 4440 6685 0.00 11125
Nuclear 1300 540 2030 0.00 2570
Total 41110 11499 23977 1450 36926
Source : "Ministry ofpower min in" website.
In addition, another 3000 MW through gas based power
projects to be located in the states of Maharashtra and Gujarat is
being pursued with the objective of placement of order by 31S'

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March, 2005 in which case this capacity would also come up in
the X plan.
Table 1-14 presents sector-wise and type-wise
capacity addition for loh plan upto 30' June 2005.

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The details aboutthe plant availability in various states are presented in
Table No. 1.15.
Table 1.15

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I I I I I I I I I I 1
Source : 1. All India Electricity Statistics General Review, 2002-03

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Key Organisations in Power Sector
In power sector, the following organisations play very
important role in the country as well as Andhra Pradesh. A brief
description of these organisations is presented here under.
Bharat Heavy Electricals Limited (B.H.E.L)
In 1960'~BHEL~ was the giant in the field of power generation. 11 still retains
its status with a place among "NAVARATNAS", It has been fabricating the
generation equipment, supplying them primarily to the State Electricity Boards
(S.E.B1s) and undertaking their erection, right from planning to the stage of
commissioning and then synchronising the station with the grid. This high level
technology was made possible due to its collaboration with Czechoslovakia. It huts
developed from lower capacity units of 60 MW to the level of 500 MW, which are
functioning very well and has also reached international standards. Majority of power
stal 1s in Andhra Pradesh are erected by BHEL including two units of 250 MW each of
'D' station at K.T,P.S. erected and commissioned ahead of schedule. 11 has secured the
prestigious contract for N.T.P.C's Simhadri Thermal Power Project at Visakhapatnam,
against stiff international competition from Japan's Mitsui Corporation. B,H.E.L. is now
developing new systems like electric engines and wind power systems. It gained
international status in the field of Electrical Drives, Controls and Automation. It has

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technology tie up with Siemens AG, Germany for latest thermal plants v d general
electric of U.S. for repair and servicing ges

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turbines. It also undeltakes Renovation and Modemisation (R & M) of the existing
generation plants under State Electricity Boards and others. It is striving to compress
the process time cycle and supplies spares for all the power plants. Under a new
scheme, steps have been taken for a tie up with lndushial Development Bank of India
(IDBI), Industrial Credit and Investment Corporation of India (ICICI), Industrial
Finance Corporation of India (IFCI), Power Finance Corporation (PFC) an d State
Bank of India (SBI) to support its clients and also to support its sales.
Central Electricity Authority (C.E.A)
Central Electricity Authority is a statutory organisation originally constituted
less than 3(1) of a repealed electricity (supply) act 1948~It. was established to
approve power projects in the country, belonging to different agencies, to conform to
the national goals. Its clearance is essential for any power projects in the country.
Projects costing less than Rs.100 crores, however, are permitted by the Statc
Governments. In the new environment of liberalisation, the role of C.E.A. is crucial
for balanced development of power industry in the country. It has advisory status in
Government of India. It is also the recommending authority on financing of projects,
especially when external sources of finance are needed. C.E.A is one of the eleven
organisations under power industry at national level. The other ten are
1. NTPC : National Thermal Power Corporation

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2. NHPC : National Hydel Power Corporation
3. PGCIL : Power Grid Corporation of India Limited
4. PFC : Power Finance Corporation
5. THEDC : Tehri Hydro Electric Development Corporation

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6. NJPC : Nathpa Jakri Power Corporation
7. NEEPCO : North East Electric Power Corporation
8. REC : Rural Electrification Corporation
9. DVC : Darnodar Vally Corporation
10. BBMS : Bhakra -Beas Management Board
The other organisation in power sector, Nuclear Power Corporation
(NPC) is under the Ministry of Atomic Energy, Government of India.
Indian Renewable Energy Development Agency (I.R.E.D.A.)
In order to protect the future generations, IREDA has been assigned a
pioneering role ,in the development of renewable source of energy, since energy
sources like petroleum products, natural gas etc., are likely to be exhausted.
1. Natural project on wind energy.
2. Natural project on solar energy.
3. Human and animal energy programmes.
4. Urjagram projects.
5 . Power generation through non-conventional energy sources.

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6 . Extension, education and demonstration.
In addition to the above, national programme is taken upto
improve the design of Chulhas titled "Gruhalakshmi" (without
chimney) " Gramnlakshmi" - and "Sukhad" model chulhas and
portable model chulhas which are being installed. People without
cattle population are the target group, to provide pollution free
environment. 24 lakh chulhas have been installed in Andhra
Pradesh so far b o u g h Non-conventional Energy Development
Corporation of Andhra Pradesh WEDCAP).

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m on-conventional Energy Development Corporation of Andhra Pradesh
Limited (NEDCAP)
The development and popularisation of renewable energy is
entrusted to public sector undertaking of the Government of
Andhra Pradesh, viz., NEDCAP Government of India has been
supporting the various activities of NEDCAP by providing
incentives including subsidy, through minislry of Non-
conventional Energy Sources (MNES).
Petroleum Conservation Research Association (PCRA)
Petroleum Conservation Research Association is an association
functioning with the financial support from Government of India to
papularise the concept of safety, fuel efficiency and economy in the
use of the exhaustible petroleum products in the country.
Ever since it was launched, this agency is striving to
conserve energy in all activities in the country. It is using the
publicity media for educating people to adopt power - saving and
fuel - saving methods.

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Power Finance Corporation (P.F.C)
The Power Finance Corporation Limited (IJFC) was incorporated in 1986
under the companies Act, 1956'. The mission of PFC is to function as the Prime
Development Financial Institution dedicated to the growth and overall power
development of power sector. The borrower - portfolio of PFC comprises of
State Electricity Boards (SEB's), State Generation. Transmission and Distribution

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companies, Municipality-run-Power utilities and also central,
private, joint sector and co-operative sector utilities. The funds
provided by the corporation are in the nature of additionally to
central plan allocation (in respect of SEBs' etc.) and based on the
merits of the individual projects. The Power Finance Corporation
is a scheduie 'A'organisation.
1. Sources of Power Generation
Power is generated in both conventional and non-conventional methods.
Conventional Methods include
(a) Hydel Generation
(b) Them~alGeneration
(c) Nuclear Generation
Non-conventional Methods are
Wind

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Solar
Bio-gas
Biomass
Tidal waves
Geo-thermal
Bagasse based co-generation
Others

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(a) Uydel Generation
Hydel power is the most traditional source of power generation.
Power is generated byinstalling a turbine and a generator, using the natural
force of water,stored in a reservoir available naturally or by constructing a
damacross a flowing river/rivulet/canalsystem.When the water head (level
of waterfall) is less than30 meters the plant is termed "Low head plant". If
h e head is between 30 rn to 100 rn, it is classified as "Mediumhead plant"
and where the head is above 100 m, it is "High head plant".
Hydelpoweris also very cheap fromthe point ofoperation and
maintenance (0 & M). Cost perunit generated in Andhra Pradeshin 2000-01
was 36.31 pslKwh (generationcost only).Because ofthe availability ofhydel
powerof 3.586.41'' M.W (Mega watts)as on 1-7-2005.
The real advantage of hydel power is that it is renewable without any extra
cost. These units can be operated at short notice. During peak demand periods (5.00
am to 8 am and 6.00 pm to 9.00 pm). These units come lo the rescue of the electricity
supply authorities, which can operate them for short spells. The water storage so
conserved in the reservoirs can be used as and when required, I?arlier it was catering
to base load. Recognising the need for developing hydel capacity, Government of
India is proposing to pay 25 to 30%. Premium for power generated by new hydel

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stations when utilised during peak period. Peaking power from hydel sources should
stabilise grid, and match the regional load requirements. Even after
premium, ppwer is very cheap compared to other wurces of power.

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NationalH ~ h e l e c b i powerc corpaaion (NHPC)was establishedto
plan. execute and operate hydroelectric power stations in the counhy.
Development of this sector is vital to tap the unexploited hydel generation
potential,to obtaincheaperpower.NHPCis betterequipped to construct
hydelplants,overcoming the inter-st&waterdisputes.It is interesting to note
that NationalThennalPowa Corporation (NTPC), the thermal power giant
in India is entering hydelgeneration with its maiden entry, to build Koldam
(800 MW) and Rampur Dam (500 MW) projects in Himachal Pradesh.
The APGENCO is in stage ofcommissioningthe first unit of Srisailm
left bank (pumped storage) underground power house (6 x 150 MW) by
March 2001 and the other five units are scheduled to commissioned at five
months intervalsthereafter.The cost ofproduction for hydel power per unit
7 to 10 paise.In the early days the Board supply powerwas 50% of the hydel
power. Due to lack off water and inter state disputes the hydel power
decreased. At present hydel and thermal power ratio is 25 : 75.
Thermal Generation
Another conventional method of generation of power is lhe thermal
generation,Fossilfuels like coal, wood (solid fuels),petroleumproducts like
dieseloil, naphtha,fueloil,kerosene molasses (liquid fuels), natural gas and
liquefied petroleum gas (gaseous hels) are burnt for production of heat, to

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transform water into superheated steam(510" to 540°C) the heat energy is
convertedinto mechanical energy by turbine and ultimately the mechanical
energy is transformed into electric power in generator.

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These plants generate power round the clock, all though the year.
Availability of thermal power keeps the wheels of economy moving throughout
the year. Earlier version of thermal power, viz., Diesel generating sets was
meeting the peak load only. The 75 percent of installed capacity in lndia is
thermal, and naturall'y it takes care of the base load in the country. All other has
only 25 percent of installed capacity. In Andhra Pradesh 72.415 percent" of the power
is provided by thermal and related sectors. Compared to hydel units, thern~alplants
can bc constructed in lesser time, say in half in period.
Superior technology and skills in running the thermal units
can lead to international standards. The success story of the
Rayalaseema Themnl power project (R.T.P.P). Created a landmark
with a plant load factor (PLF) of 94.5 percent and stood first
among all the thermal stations in the country. 'The performance
secured the Government of India's meritorious productivity award
for Rayalaseema Thermal power project (RTPP) for four
consecutive years. Vijayawada Thermal Power Station (VTPS)
realise a plant load factor (PLF) of 92.4 percent.
The all-India average plant load factor during the year was 70 percent and
that of National Thermal power station (NTPC) 81.4 percent. The overall thermal
generation of APGENCO stations was 2972.5 MW as on 31-3-2004. The

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APGENCO has achieved highest ever plant load factor (PLF) of 88.9 percent in
Thermal generation during 2002-0312, surpassing all other p w w utilities in the
country including the gaint National Thermal poww corporation (NTPC).

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Combined Cycle Thermal Stations
Combined cycle power plants are the latest versions of Thermal plants, which
can be use gas Compressed Natural Gas (C.N.G.) and the naphtha the base distillate
liquid fuel from crude oil refineries for generation. Gas based projects atu: similar to
the coal based plants and installed in many parts of the country takingadvantage of the
natural gas found in Bombay High Krishna Godavari basin. Due to their fuel efficiency,
and short time needed to commission them, they arevery popular now. Andhra Pradesh
Gas Power Corporation limited(APGPCL)'s 1 12.5 MWunit at Vijeswaram was
commissioned in just months from the date of awarding contract, creatingAsian Record
and the second unit of 60 MWwas commissioned in all in 9 months, creatingworld
record. Excess heat in combined - cycle Gas based thermal stations (C.C.G.B.Ts) is
higher thermal. Gas costingilboul Rs. 4.00 ps per cum, can generate about 4 units of
power per cum. and costs abou~ 1.OO per unit. Naphtha costingabout Rs. 11.00 per
litre, also generates about 4 units per litre and costs about Rs.2.75 per unit. For new
units, cost of naphtha is higher,
Nuclear -Generation
The Third conventional source of power is nuclear generation. An Atom is
about 1/10 trillionth of a meter, a minute quantity, having all the properties of the
element, consisting of an aggregate of protons, neutrons, and electrons, such that
the number of protons determines the element. In Atomic fusion (combining
Nuclei), two atoms fuse together, also with the release of energy, while in Atomic

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fission (spiriting Nuclei), unstable atomic nuclei are bombarded with particles
called neutrons. The nuclei splits and release energy. Nuclear power stations
generate energy by producing carefully controlled fission reaction. This energy is

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converted into electricity. If such divergent reaction occurs at
uricontrolled rate, it becomes an atomic bomb,
In a nuclear creator, the nuclear is split into two and releases enormous
heat. One pound or 454 grams of pure uranium creates as much heat as the
burning of 1360 tons of coal. The running cost of a nuclear power plant is
comparable to a coal based thermal plant, of course, saving exhaustible fuel.
Nuclea power was found to have immense potential in power generation, and it
is very dependable as a source, which is almost inexhaustible like solar heat.
At present, the installed capacity of nuclear power stations in the country
is more 2.05 percent In order to achieve the targeted 20,000 MW of installed
capacity and 10 percent share for nuclear power by 20 10, a whopping Rs.
1,00,000 crores of investment will be needed. There are no problems of
technology or for raw materials in the country. Resources crunch is the single
major hurdle for expanding nuclear power generation. N.P.C. has only 2720 MW
af installed capacity as on 28-03-2005'~and Government of India's equity is
insufficient lo raise resources for capacity expansion. Capacity expected to touch
4500 MW by 2007-08 says Kakodkar, Chairman of Automic Energy
Commission and Secretary, Department of Automic ~ n e r ~ ~ ' ~ .
Non-conventional Methods

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Non-conventional; methods for generation of power are the hope of the future,
especially as the energy source are exhaustible. Energy sources like coal and
petroleum products are used for power generation and to run automobiles. It is
estimated hat by 2050 A.D, Petroleum products will be exhausted on earth. Hence,

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the need for alternative sources of energy is all the more important. Though India
is better placed with abundant coal reserves, it cannot still feet comfortable. Only
now, there is recognition to the need for exploitation of non-conventional sources
of energy, and their greatest merit is they are not exhaustible. The conventional
fuels for. power generation are depleting. It is therefore imperative to generate
energy throng renewable and non-conventional energy sources.
In line the Government of India Policy, the Government of Andhra Pradesh
Promotingpower generation through non-conventional and renewable energy sources.
The Government of Andhra Pradesh has designed Non-conventional energy
Development Corporation of Andhra Pradesh (NEDCAI') as a Nodal Agency for; this
purpose. It is estimated that Andhra Pradesh has the potential to generate 2222
M.W.of power from Non-conventional Energy sources like Mini Hydel, Wind,
Biomass, Bagasse co-generation, Municipal and industrial waste.
Wind Generation
Whereverthe wind is regular and its mean velocity is more than 18 km
perhour,it is a suitable place forwind generation. Wind energy conversion
systems like windmills exploit wind for pumping and generation of
electricity. Windmills have very long life. Wind power is very economical
and totally pollution - free. Wind power is estimated to have a very good
material of more than 20,000 MW in the country of which significant

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potentialis in Andhra Pradesh.As on 3 1"January 2005 about 2 MW ' ~wind
farms are operational in the different parts of India, connected to regional grids.

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The only state, which hamessed maximum wind energy, is Tamil Nadu in
the country. Gujarat is the only other state exploited wind energy in national
average (5.387 percent). Andhra Pradesh is the third place exploited in wind
energy. Seacoasts, top of wills, and vast open areas provide good scope for wind
power. An investment of Rs. 3.5 to Rs. 4.5 crores per M.W. is needed to install
windmill to tap wind energy. The life of windmills is about 20 years.
Government of India, Ministry of Non-Conventional Energy
sources (M.N.E.S) and State Government through Non-
Conventional Energy Department Corporation of Andhra Pradesh
(NEDCAP) encourages entrepreneurs in private sector to take up
wind generation.
Many private entrepreneurs are participating in this sector, taking
advantage of the Governments encouragement and incentives and they are
allowed to usc this power at their place I factories at a marginal 2 percent
wheeling charge to APSEB (Now APTRANSCO) or sell their power to third
parties at a tariff not less than H.T.tariff of APTRANSCO. With a limit of 5
consumers per M.W. Power evaluation facilities are created by APTRANSCO
on payment of Rs. 10 lakhs per M.W. Andhra Pradesh wind Farms limited
(APWFI,) a subsidiary of NEDCAP provides technical constancy services.

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There is also an attractive provision of banking (depositing)
their power with APTRANSCO, which can be drawn at 2 percent
less (towards wheeling charges), and at the same rate for sale to
third parties, during the period from August to March only.

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Andhra Pradesh Wind F ms Limited (APWFL) was incorporatedon
04.05.1998 as an asset management company, a fully owned subsidiary of
N.E.D.C.A.P, to take up wind projectson joint sharingbasis,underprivate
sector. APWFL as a specialist in the field of wind farms undertakes
everythingfromselection ofsite to commissioning and operation on well, 40
percent ofthe project cost is obtained by APWFL as loan fromIREDA and
60 percent frominvestors in units of Rs.1.00 lakh each.
So, far 283 Mw of wind power projects were commissioned in Andhra
Pradesh. Some locations in Anantapur, Kumool, Cuddapah, Chinoor,
Visakhapatanam, Nellore and Rangareddy Districts have been identified. They
have annual mean wind speed of 22.06 Km ph at 25 meters level with a power
density of 282.1 wats/Sq.m with annual mean air density 1.14 kg/cu.cm.
Solar Power
Sun, believed to be the visible God, is a perennial source of
energy, available round the clock, in some or other part of the earth.
For any particular ma, sunrise is available for about 12 hours per day.
During major part of Lhc year, heat energy of sun is available in India
and can be exerted through solar panels and can be stored for use.

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For remote tribal areas and isolated pockets the only possible source of power
is solar power, which helps the residents to have the benefits of civilization. Except
initial cost of installation, there is virtually no cost for their generation and
maintenance. Another merit is that this pollution, free power, so obtained can be

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storedfor sometime. Solar energy is obtainedis two routes, viz. Solar thermal and
photovoltaic technology. Solar thermal energy can be applied for solar water
heating, solardryers,solar cookers,and solar desalination systems. Already solar
cookers, solar lanterns, solar water heating systems, etc. ax in use.
India is the leader in photovoltaic technologydevelopment, local production
anddeployment. Photovoltaic panels areusedto extract the heat energy from sun
andstoredfor use. The solar systems one installedonthe rooftops toseven-fuel cost.
Subsidy on solar equipment is available fromthe Government, to encourage people
to buy andutilize themextensively.It helps to conservedepletingnatural resources.
Deferredpayment facilitywith 5 percent interest for domestic and 12.3 percent for
commercial industrial units is available in Andhra Pradesh.
Review of Literature
Very few research studies were conductedon thepower sector of the state.
Rambabu D . ' ~study on It material management system in Andhra Pradesh
electricity Board" has studiedthe existingmaterial management system in AI'SEB
andofferedsuggestions forbetterresults. His study covers organisation, planning
procurement. Storing, non-moving and materials reporting systems. The study
observed that the existing material planning is an unsuccessful exercise due to
wrong basis of calculation of materials budget and sudden change in the budget

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affectedby theGovernment Policy. It also observedthat purchase follow-up action
is absent in the Broad. Thesize of inventory in the Board is also increasing from
time to time and hence, the specific norms should be developed for keeping
inventorylevels at the minimum andimplement the FSN analysis forcontrollingthe
inventory on sound lines.

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Chalapathi Rao G.v.'s" study on "material management in state electricity
Boards with a special reference to Andhra Pradesh, Madhya Pradesh, Utter
Pradesh and West Bengal" has examined the reasons for deficiencies in
material management of state electricity Boards pertaining to the organisation
structure, purchases policies inventory policies and other related issues. The study
pointed out that Boards are not maintaining materials management manuals.
There are no materials planning to suit the marketing conditions for cash
availability. Basic requirements of classification, codification and selective
control of inventory through ABC, FSN, VED and XYZ analysis have been
suggested.
Chandra Bose D's'* study on "inventory management in public sector
electricity industries in Kerala examined the inventory management practices in
the public sector electrical industrial units in Kerala. It observed that as results of
the adverse working conditions and unfavourable and unworkable prices, most of
the public sector electrical undertakings in Kerala have been incurring losses
since 1982. The financial performance of these public sector electrical undertakings is
not satisfactory on an account of higher raw materials cost heavy borrowings and huge
interest burdens. The inventory cost of the public sector, electrical undertakings. At
this juncture the present investigation aimed to suggest measures based on the findings
of the study for the improvement of working system wherever possible. There are
possibilities to reduce the cost of materials by competitive bidding, and savings in the
cost of holding inventories can arise out of economic ordering, reducing deterioration

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and obsolescence in storage, and there by reducing the working capital. The above
methods have been used with p a t

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successin foreign electricalfirms and in the private sectorelecdcalundeding
s in Kerala. The same methods can be adopted in the public sector electrical
undertakings run by the state to increase their eficiency and profitability.
Mathews K.c'~, ~am~rakash*',Aganval L.M?'. Mcnon P.G.', Rama
swamJ3 have conducted nsearch studies and identified some of the major
problems in the areas of material management and inventory management.
No comprehensive study has yet been made to cover all the related
aspects of inventory management in Thermal Power Stations in Andhra
Pradesh.tlencc it is felt that there is a need to analyse allthe important issues
related to the Inventory Management in Thermal Power Stations in Andhra
Pradesh. The present study differs from previous studies in terms of its
nature.Scope and periodofstudy and it is a comprehensive one covering all
the aspectsofinventory rnanagemcntin Thermal powerstations.The present
study proposesto examine,analyse and evaluate the inventory management
in Thermal stations(State sector)covering suchas management ofinventory,
techniques of inventory management and control, efficiency of inventory
management and problems of inventory management and the like.
Need and Importance ofthe Study

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Quality of human life is linked to electricity. They can sacrifice on quality
of cloth and housing, but life without electricity in modem times is miserable.
Gradually it gained more importance over everything else in life. If power is not
available for one day, all the basic needs are affected. Water supply will not be
normal, f w d preparation is affected as electric cooking range, and grinds etc, are

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out of service. Dakness will prevail all over. Telephones become silent and
televisionsdo not work.Computers,which are behind all activities of life in
modern days, will not be function. Lift is at stand still and going up to top
floors will be uphill task. Electric trains will be to a grinding halt.
Agriculturalpump set will not work. Routine life of all sections ofthe people
will be seriously geo-paradise in absence of power. At times power may be
available,but not to the extent of meeting the full requirements of different
categories of consumers, tis the demand exceeds supply always. Due to
power cuts, there will be drop in industrial and agricultural production.
The present study will give an in sight into inventory management
practices in Thermal power stations (Statesector), since no study of this type has
so far been done. The present study is worth understanding and tries to fill the
gaps existing at present. It is an empirical and micro level study of the
organisation. The study covers procedures, practical basic techniques, policies
and managerial aspects of inventory management in a broader perceptive.
Precisely the main reksons for taking up the present study are as follows:
1. The research studies undertaken hitherto have not
covered comprehensively the inventory management of
Thermal power stations in Andhra Pradesh (State sector).
2. Inventories represent a very significant part ot'the total
investments of business enterprises and more so in case of
manufacturing enterprises.Investment in inventories should be

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subjected to rigorous coptrol to ensure that every rupee of
investment in inventory contributes to increased profitability.

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3. Studies made in India have revealed that scientific techniques of
inventory management can reduce 'inventory investment some item
as much as 50 percent or even more. It is quite observed that the area
of inventory management is being neglected in the thennal power
stations. It implies that concerted efforts on one class of inventory
items with scientific and innovative methods of inventory management
helps in releasing tied up funds for productive purposes,
4. Taking into account the significance ofThermalpowerstations
in terms of installed capacity, capacity additions, investment,
generation, transmission and distribution and also keeping in
view of the problems ofinventory faced bythe industry,a need
is felt to undertake a study on inventory management in order
to find out how the investment in inventory is managed in
thermal power stations in Andhra Pradesh.
5 . Even though there has been a phenomenal increase in
generation, Transmission and distribution of power, the
generation company (APGENCO) formerly APSEB has
been incurring an accumulated T&D losses.
In generation, immediate steps are needed to increaqe the installed
capacity, for which finance is the major hindrance. Renovation and

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Modernisationandadoption oflatest technologyin operating, existing units
will help improve efficiency of units in the services of generation of power.

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On the distribution side, demand has been ever increasing
over supply. Power generated and purchased from different
agencies has to be taken to the consumers for which transmission
and distribution sysrem needs to be strengthened.
Objectives of the Present Study
The studies on present practices of inventory management in industries in
India are profuse while an analytical study comprehending the inventory
management practice in the Thermal power Stations in Andhra Pradesh with
special reference to "VTPS" "KTPS" "RTPP" "NTS" "RTS 13" is highly
essential. The present investigation aims to fill up the lacuna. The objective of the
study is rtl examine the inventory management practices by identifying some of
llic major areas of the inventory management such as purchase planning and
organisation, stores organisation and control, management of inventories and
techniques of inventory control with a view to point out strengths and weaknesses
of prescnt inventory management system and to offer suitable remedial measures
for further improvement. The following are the specific objectives of the study.
1. To study the operational performance of Thermal
Stations in Andhra Pradesh.

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2. To examine the utilisation of various components of
inventory in Thermal Stations.
3. To assess the inventory management techniques
adopted by Thermal Stations.

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4. To identity the problems, confronted by the Thermal
Stations in managing inventory.
5 . To suggest means and ways in order to tone up the
inventory management in Thermal Stations.
Scope of the Study
The present study"inventory management in thermal power stations
in Andhra Pradesh" (State sector) examines and evaluates the existing
policies and practicesin respect ofinventory management. It is an empirical
and micro level study ofthe organisation. The scope of the study is mainly
on thermal powerstationsin order to keep the study in manageable limited.
Further the study covers the procedures, basic techniques, policies and
managerial aspects of inventory management in a broader perspective.
The power industry in various sectors has grown
considerably and consequently the working capital blocked up in
inventories has also gone up. With rapid development in
management, various effective tools and tcchniqucs have been
evolved for efficient management of inventories. Many linns have
taken advantages of these new developments and restructured their
inventory management in tune with the modem trends and have

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obtained the benefits of cost reduction. Some firms are in process
of getting the personnel trained, while many other have not yet
initiated to tone up the inventory divisions and get their personal
trained.
Private sectorundertakings in India are careful to make at least some
savings in inventoriesby effecting both internal and external economies, as

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otherwise their very existence itself will be treatment. Most of the public sector
undertakings in India were making heavy losses and the return on investment is
now not comparable to that of private sector. There are possibilities to reduce the
cost of purchases of materials by competitive bidding and value analysis while
savings id the cost of inventories can arise out of economic ordering, reducing
the working capital blocked up. The methods mentioned above are used with
great success in foreign power station and private sector undertakings in India.
And there is a good scope for further improvement of these techniques in the
public sector power stations in general and the Thermal power stations in Andhra
Pradesh in particular to increase their efficiency.
Sources of Data
The study is based on both primary and secondary sources
of data as detailed below:
Primary Sources
The primary sources of data relating to various aspects of inventory
management in thermal stations is obtained by administering a structured
questionnaire to the different levels of executives in the areas of inventory
management of the power stations. Personal interviews and discussion direct oral
deliberations were undertaken with the executives of various echelons of the

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management in the stations. Further the researcher has also
obtained relevant information in order to substantiate the data
collected through questionnaire and on the spot study was
undertaken to understand the systems and procedures of
purchases, receipts, inspection, storage and organisation structure
of inventory management.

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Secondary Sources
The Secondary sources of data relating to the study is
obtained Erom the following
1. Annual Statement of Accounts (as at 3 1-1-99) from 1991-92to 1997-
98 from A.P.S.E.B. and from 1999-00 to 2003-04
from A P O Administration Report.
Performance Review of Thermal Power stations.
Power Development in Andhra Pradesh (statistics)
Report of the High-level committee Restructuring
and privatisation of power sector.
CM's conferences on power.
APSEB Reforms to power the future.
Speech of power ministry at CM's conference.
APSEB problems and achievements.
APSEB Questions and Answer.

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Vidyut Shakti, Vidyut bharati.
A decade performance of thermal stations.
Andhra Pradesh power sector reforms.
Annual Report - Ministry of power - Government of
India.
Whitc paper on power sector issued by State Government.
Research Periodicals.
News papers Journals.
Teddy.
AnnualReport on Working ofElectricity Boards and Electricity
Departments by PlanningCommission,NewDelhi.
All India Electricity Statistics General Review 2002-03.

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Tools of Analysis
The data collected from these sources have been processed,
analysed, interpreted and presented here. Some of the simple
statistical techniques such as percentages, average, trend analysis
and growth rates have been applied for analysis and presentation
of numerical data in order to draw inferences. The results of the
analysis are presented in the form of Tables. Some financial tools
are also applied to analyse the data in order to interpret the results
in a more scientific and appropriate manner.
Limitations of the Study

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Th e research er h ad exp erienced difficu lty in getting fullinfo rmatio n on certain vitalasp ects ofin ventory man agemen t in the p ower station s,since the ex ecutives feel that th ein fo rmatio n is of co nfidentialin n atu re.Regard ing the information drawn b y the perso nald iscussion s,prop er care has been tak en to the extent.po ssib le to elicit
co rrect in fo rmation b y means of cross ch ecks. So me ofthe co rporate ex ecutives are hesitating to prov id e req uired data. Ilo wever itwou ld not sub-statistically affect th e fin dings since n o majorch ang es hav etak en place du rin g the period ,with reg ard to th eo bjectives and p rogrammes o fthe inv ent ory dep artment of th ermalp ower statio ns.For th e comp arativ estu dy o f
v ario u s asp ects o f in v en to ry man ag emen t, th e d ata is av ailab le fro m p erfo rman ces o f Th ermal p o wer statio n fro m 1 9 9 0 -9 1 to 2004-05. Ilen ce, th e co mp arativ e stu d y is co n fin ed to th e ex ten t o f d ata av ailab le fro m th e

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Chapter Scheme of the Thesis
The present study of Inventory Management in Thermal
Stations in Andhra Pradesh is organised into seven chapters.
Chapter :I: Introduction and Research Methodology
It presents Power Development in India - Thermal, Gas, Hydel,
Wind power,Statusofthe powerstations in India and the Role ofthe thermal
stations in power generation. The Statement of the problems, Review of
Literature, Objectives, Sample Design, Tools of Data Collection, Tools of
Analysis and Chapter Scheme are also covered in this chapter.
Chapter -11: Power Sector Development in Andhra Pradesh
Power Sector Development in Andhra Pradesh - Generation,
Transmission, Distribution, Plant load factor, Government policics,
Financial support, Performance of financial as well as operational,
Privale sector participation, Power sector reforms, Restructuring of
APSEB and the Organisation are discusscd in this chapter.
Chapter - 111: Management of Inventory

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Management of inputs in thermal stations - Coal, Specific oil, Spare
parls,Availability of inputs, Auxiliary consumption, Heat rate, Proximate of
coal, Oil and Problems of inventory management are presented.
Chapter - IV: Management of Stores
Functionsofstores,Inter-relationship betweenstores and departments,

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Stores accounting practices,Storesmanagement policies,Stores management
practices in APGENCO, Receipt of materials, Storage of materials,
Issue of materials in APGENCO are furnished in this chapter.
Chapter - V: Techniques of Inventory Management
This chapter attempts to study the various techniques of
inventory management like application of lnventory management
techniques, Inventory management techniques used in the thermal
stations, Problems in application of Inventory Management
techniques.
Chapter - V1: Efficiency of Inventory Management
This chapter highlights the size of investment in inventory,
Inventory management practices and efficiency of inventory
management in 'Thermul Stations.
Chapter - V11: Summary of Conclusions and Suggestions

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This chapter presents a brief summary of conclusions arrived
at from the entire study and suggestions offered to improve the
inventory managcment practices in Thermal Stations in the state.

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REFERENCES
1. Eyewitness Encyclopedia of Science 2.0 - Physics -
Electricity (compact disc).
2. Electricity power and energy output are used at different
places to present the same term.
3. India at 50, Facts figures and Analysis 1947-77, Express
publications Ltd., Madurai.
4. Wallace E. Time energy resources and economic development
in India, Allied publishers, New Delhi, 1978, p.8.
5. World Development Report 1988 - WorldDevelopment Indicators 1988.
6. Prof. D. Himachalam, Power sector in India - Issues and challenges
(unpublished report), Dept. of Commerce, S.V.University, Tirupati, 2005.
7. Power to all progress - Power pathway - 1988-2000, Ministry
of Power,Government of India, New Delhi, 2000.
8. Annual Report, Ministry of Power, Government of India, 2004-05, p.5 1.

Phone: 0512-2328181
Mobile: 7753818181, 9838033084
9. Annual Report, Ministry of Power, Government of India, 2004-05, p.84.
10. "APGENCO Performance indices", website.
1 1. Power Development in Andhra Pradesh (Statistics), 1997-98,p.44.
12. A decade performance, APGENCO, 1994-04, p.3.

Phone: 0512-2328181
Mobile: 7753818181, 9838033084
13. Annual Report, Ministry of Power, Government of India, 2004-05, p.9. The Hindu daily 9
June 2005.
Rambabu D. "Material Management system in APSEB". Ph.D thesis, Andhra University, 1985.
Chalapathi Rao G.V. "Material management in state electricity Boards with special reference to Andhra pradesh
Madhya Pradesh Utter Pradesh and West Bengal". Ph.D thesis, Osmania university, 1984.
Chandra Bose D. "Inventory management in public sector electricity industry in Kerala" Ph.D.
Thesis, Cochin University of Science and Technology, 1998.
Mathews K.C., "Material management practices in major undertakings in Indiay', Ph.D thesis, Cochin
University, 1979.
Ram Prakash, "Management of inventories in selected public sector undertakings of Central Government", Ph.D thesis, Delhi
University, 1978.
AgarwalL.M., "lnventory management in Engineering Industries - Public sector in India", Ph.D
thesis, Bhopal University, 1979.
Menan P.G., "Some aspects of inventory management in Engineering Industry", Ph.D thesis, Puna
University, 1975.

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