Annual Review 2010-11

Annual Review 2010-11 Incorporated in 1975, NHPC Limited, formerly known as National Hydroelectric Power Corporation Ltd, a MINIRATNA Category-I Enterprise of Government of India is actively involved in construction of Hydroelectric Projects in various parts of the country and generation of power. Today, NHPC supplies the much needed peaking power especially to the Northern and Eastern parts of the country. NHPC has become a listed company on NSE & BSE w.e.f. 01.9.2009. Net Profit: The company achieved highest ever net Profit after Tax of Rs 2,166.67 crore which is 3.64% higher than the net profit after Tax of Rs 2,090.50 crore earned during 2009-10. Sales & Revenue Realization: Registered Sales Turnover of Rs 4,046.59 crore as against Rs 4,153.21 crore of last year. Last year’s sales included an arrear of Rs 844.14 crore. Achieved 100% sales realization against 97% achieved last year. Operating Power Stations & Power Generation: Currently, NHPC operates 14 hydropower stations with a total aggregate capacity of 5295 MW which includes 1000 MW Indira Sagar Project and 520 MW Omkareshwar Project through NHDC Limited - a subsidiary JV of NHPC with Government of Madhya Pradesh (GoMP). NHPC generated 18606 Million Units (MUs) from its own Power Stations against the target of 18000 Million Units for “Excellent” MoU rating for the year. The operating Power Stations of the company achieved Plant Availability Factor (PAF) of 85.2% against the MoU target of 79.9 % for “Excellent” rating. Loktak, Salal, Chamera-I, Uri, Dulhasti, Power Stations achieved higher generation than the targets for excellent rating. Capital Expenditure: The Capex plan of NHPC for the year 2011-12 is Rs 5090 crore. The overall Capex for XI plan period stands at Rs 18,813 crore which will be met through internal resources, subordinate debt from Government of India, market borrowings and proceeds from IPO. Projects under Construction: 10 projects having aggregate installed capacity of 4502 MW are under active construction. With the commissioning of these projects, NHPC aspires to become a 9500 MW company in the next five years. (Details of the projects is enclosed at Annexure-A). Projects under Government Clearance: NHPC is actively pursuing clearances from Government of India for several hydropower projects having aggregate capacity of 9651 MW. Out of these, seven projects with aggregate capacity of 5965 MW are planned to be implemented by NHPC on its own. Other projects are planned for implementation through Joint Venture route namely 66 MW Loktak Downstream with Govt. of Manipur, another three projects with aggregate capacity of 2120 MW in Jammu & Kashmir with Govt. of Jammu & Kashmir and 1500 MW Tipaimukh Project in Manipur with SJVN Limited and Govt. of Manipur as partners. (Details of the Projects enclosed at Annexure-A). Joint Venture: MoU has been signed amongst NHPC, SJVN Limited and Govt. of Manipur for formation of a Joint Venture Company for implementation of the 1500 MW Tipaimukh Hydroelectric (Multipurpose) Project in Manipur. NHPC, SJVN Limited and Govt. of Manipur shall have a share holding of 69%, 26% and 5% respectively. The Promoter’s agreement for incorporation of Joint Venture Company in J&K state for the execution of Pakal Dul & other Hydroelectric projects (2100 MW) in the Chenab basin has been signed with share holding pattern of 49% (NHPC), 49% (JKSPDC) & 2% (PTC). A MoU for the formation of Joint Venture with the Orissa Hydropower Corporation (OHPC) for development of Sindol-I, II & III hydroelectric projects (300 MW) in Orissa is at final stage. It has been decided by the Govt. of India to develop Chamkharchhu-I Hydroelectric Power Project (670 MW) in Bhutan through JV mode with NHPC partnering with Druk Green Power Corporation (DGPC) of Bhutan, under the Indo Bhutan Hydropower initiative to develop 10,000 MW in Bhutan by year 2020. The MoU for same is in advance stage of finalisation. Diversification: NHPC is committed to maintain a leading position in hydro sector and also expand its business domain. The company is foraying into thermal power business through its subsidiary company NHDC which has been entrusted with setting up of a 1320 MW Reva thermal power project in Khandwa district by Government of Madhya Pradesh (GoMP). The coal linkage for the project is awaited from Ministry of Coal, Govt. of India. Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) & Pradhan Mantri Gram Sadak Yojana (PMGSY) : The Company has been entrusted with Rural Electrification works under Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) – the flagship programme of Govt. of India. The works are spread over 27 districts in the States of Bihar, Chhattisgarh, Jammu & Kashmir, Orissa and West Bengal which covers electrification of 29709 villages (9504 Un-electrified / De-electrified and 20205 nos Partially Electrified villages) and providing service connections to 20.49 lakh BPL households at an estimated cost of about Rs 2,900 crore. During 2010-11, NHPC electrified 2667 villages and provided service connections to 7.48 lakh BPL households. Cumulatively, till March 31st, 2011 NHPC had electrified 23051 villages (8632 Un-electrified / De-electrified and 14419 nos Partially Electrified villages) and provided service connections to 16.28 lakh BPL households. NHPC is implementing 220 KV power evacuation system of Teesta Low Dam-III and IV Hydroelectric Projects on deposit work basis for WBSETCL. Out of the total line length of 174.24 km with 626 nos towers, 58.31km line stringing with 412 nos towers has been completed till 31st March 2011. NHPC has also been entrusted with construction of rural roads and their maintenance under Pradhan Mantri Gram Sadak Yojana (PMGSY) in six districts of Bihar namely East Champaran, West Champaran, Muzaffarpur, Sheohar, Sitamarhi and Vaishali. Under this scheme, 832 nos roads totaling 3517 km with a cost of Rs. 1921 crore have been cleared by Ministry of Rural Development, Govt. of India. 333 nos roads totaling 1627 km have been completed at a total cost of Rs. 818.93 crore. Quality Management: NHPC has got ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 for its Quality Management System, Environment Management System and Occupational Health and Safety Management System respectively for its Corporate Office and 12 Power Stations (one power station certification is under process). NHPC has further gone ahead by integrating the above systems under Integrated Management System IMS and PAS 99. During 2010-11, NHPC has obtained one IMS and ISO 14001 Certifications for its Power Stations. Consultancy Services NHPC is providing consultancy services in the various fields of hydro power viz. river basin studies, survey works, design and engineering, geological studies, geotechnical studies, hydraulic transient studies, hydrological studies, contract management, construction management, equipment planning, underground construction, testing commissioning, operation & maintenance etc. to leading organizations of the country. NHPC is registered with World Bank, Asian Development Bank, African Development Bank, Kuwait Fund for Arab Economic Development and Central Water Commission as a Consultant in the area of Hydropower. Major consultancy assignments include assignments from Central and State Government agencies in India including State Electricity Boards and Public Sector Undertakings. As on 1st April’11, eighty two consultancy assignments have been completed and eighteen assignments are ongoing. During 2010-11, payments amounting to Rs. 91.42 crore were received. The organizations to whom consultancy services are currently being given include A&N Administration, KRCL, MEA (for hydro projects in Union of Myanmar – Department of Hydropower, Govt. of Union of Myanmar, Implementation and renovation & Modernization of Varzob-I Power Station in Tajikistan, Deptt. of energy, Royal Govt. of Bhutan), PIDB, PGCIL, WBREDA, WBPDCL, Athena Demwe Power Pvt. Ltd. NHPC has earlier given consultancy services to BBMB, BSHPC, CEA, CSEB, CWC, DVC, Govt. of Arunachal Pradesh, Govt. of Bihar, Govt. of Goa, Govt. of Mizoram. Govt. of Nagaland, KPA, KSEB, LAHDC, Northern Railways, NTPC, REC, THPA, SJVNL, THDC, UJVNL, CES, ICICI, IFCI and Jaiprakash Hydro Power Ltd. Overseas assignments: The Company plans to continue expanding its international operations and help in harnessing the hydropower potential available internationally by leveraging its existing relationships and goodwill earned through past consultancy assignments. The expertise available with NHPC is being utilized in the area of hydropower development in countries like Bhutan, Myanmar and Tajikistan. Under the ‘Action Plan’ on India-Bhutan cooperation in hydropower development of 10,000 MW by the year 2020, NHPC has been entrusted with the work for preparation of DPRs of Chamkharchhu-I H.E. Project (670 MW) at a cost of Rs. 22 crore & Kuri Gongri H.E. Project (1800 MW) at a cost of Rs. 27 crore in Bhutan by the Ministry of Power. In this regard, a Bilateral Agreement was signed between DoE, RGoB and NHPC Limited on 22.12.2009. Preparation of these DPRs is to be completed by December, 2011. NHPC has mobilized its resources at the project sites and the works are progressing as per schedule. NHPC has been entrusted the work of Additional Investigations and Preparation of Updated Detailed Project Reports for 1200 MW Tamanthi and 642 MW Shwezaye Hydropower and Multipurpose Projects in Myanmar, as consultancy assignments by Ministry of External Affairs (MEA), Government of India. Government of India through MEA has funded the cost for the additional investigations and preparation of updated DPRs for both the projects, i.e. Rs. 20 crore for each project together totaling to Rs. 40 crore. The completion schedule for the subject work is 18 months. As decided in the meeting between High level Indian Delegation and Ministry of Electric Power No.1, Govt. of Union of Myanmar, Interim Report of Tamanthi project has been submitted to MEA, MoP, GoI and GoUM in October, 2010. The Interim Report of Shwezaye Project has been submitted in April, 2011. The work of Renovation & Modernization of Varzob HE Project in Tajikistan is in progress as per schedule. Major civil works have been completed in March’11. IT & Communication NHPC has remained in the fore front in deploying Information Technology and Communications to enhance its efficiency, productivity and profitability. After implementation of all modules of ERP in the last 3 years, the key functions of the organization have now been largely IT enabled with major focus on Project Management of Construction Projects and Operations and Maintenance of Power Stations. IT and Communication infrastructure covering more than 50 locations of NHPC have been upgraded to support the increased dependence on IT. Multi-mode communication network based on satellite links and MPLS/VPN links has been established to connect all the projects, power stations and regional offices to Corporate Office. Also adequate IT security measures have been put in place to ensure security of all information assets of the organization. The organization is now reaping the benefits of investment made in these initiatives. An online Project Monitoring Centre has been created at Corporate Office to support Video Conferencing, Live Video Feeds from cameras installed at strategic locations of Construction Projects and to facilitate the analysis of physical and financial progress data. Online web casting facility is available for live broadcasting of important event/announcement/ briefing by senior management for all locations across the organization. NHPC has also created a policy framework for managing the IT systems and assets owned by it so that they are optimally used in secured manner. Research & Development activities · Clean Development Mechanism: NHPC in its endeavors to avail benefits under CDM as well as other carbon trading initiatives is in the process of obtaining CDM benefits under Voluntary Emission Reductions (VERs) Scheme in respect of Teesta-V Power Station. On this account, NHPC will get additional revenue. Two medium sized hydroelectric projects namely Nimoo Bazgo (3x15 MW) and Chutak (4x11 MW) located in Leh & Kargil Districts of J&K state have already been registered by CDM Executive Board of UNFCCC. Nimoo Bazgo and Chutak Projects will reduce emissions of 187,893 metric tonne CO2 equivalent and 166,831 metric tonne CO2 equivalent annually respectively after their commissioning. On this account, NHPC will get additional revenue from both the projects annually over a period of seven years which shall be renewed for another two terms of seven years each. · Work on Computational Fluid Dynamics: Computational Fluid Dynamics (CFD) Lab in NHPC, Corporate Office has been established to analyze the flow pattern in the water conductor system. In this regard CFD analysis of water flow through penstocks of three power stations namely Salal, Bairasiul & Loktak has been completed. CFD analysis is also being carried out for hydraulic studies of flow through surge shaft & Dam-Spillway. · Energy Audit of Power Station: With a view to assess & optimize the power station’s performance, Energy audit of Teesta-V Power Station has been completed and the recommendations to improve the energy saving are being implemented by the Power Station. · National Perspective Plan (NPP) for R&D Project: Under MoU with SJVNL, CEA and NML, development of new alloy material having superior properties to resist silt erosion damage and increase longevity of machines is in the process for use in turbine underwater components. A research project proposal under NPP “Tunneling in Water Charged Zones under High Hydrostatic Pressure” has been entrusted to NHPC through Central Power Research Institute (CPRI) by Ministry of Power, Govt. of India with a financial outlay of Rs 109.03 lakh & duration of 2 years. · NHPC is in the process to develop wind power of 8-10 MW near Salal Power Station in Bidda, J&K. · An MOU between International Research and Training Centre on Erosion & Sedimentation (IRTCES), China and NHPC has been signed for co-operation in research areas in sedimentation & their management in hydro reservoir. Two reservoirs namely, Chamera-I & Dhauliganga-I from NHPC and two reservoirs namely, Bajiazui & Hongshan from IRTCES, China have been selected for the collaborative research. The research work is under progress. Human Resource Development: 98.5 % of the employees relating to Operation & Maintenance of Power Stations were trained during FY 2010-11 against the MoU target of 85%. NHPC has been given the opportunity to organize training programme on Operation & Maintenance for Hydro Power Station for the participants from African Countries by Ministry of External Affairs. The programme was organized at Chamera-I Power Station and was highly appreciated by the participants. NHPC has also received an invitation from Ministry of Power, Govt. of Nigeria for exploring business opportunities in Nigeria. NHPC has taken several initiatives for developing its human resource, which includes establishing Learning Joint Ventures (LJVs) with premier academic institutes like IIT- Roorkee, IIT-Delhi, IIM-Bangalore, IIM-Calcutta, IIM-Kozhikode, IIM-Indore, IIM-Lucknow, MDI-Gurgaon, IMT Ghaziabad, ISB-Hyderabad, ASCI-Hyderabad, ESCI-Hyderabad, CPRI-Bangalore, NCB-Ballabgarh, ISM-Dhanbad, BHEL-Bhopal, NWA-Pune etc. Also training & development programmes are conducted through reputed manufacturers like ABB, Areva, Alstom, VA-Tech, Siemens etc. for keeping the employees updated with the state-of-the-art technologies. Corporate Social Responsibility: NHPC, a socially responsible Corporate Citizen, has adopted a new comprehensive CSR Policy in line with the DPE guidelines, significantly widening the horizon of CSR activities. The new Policy stipulates earmarking 0.5 % of profit for CSR activities and forming a non-lapsable pool for CSR Fund. The community development initiatives include creating Herbal Parks, Afforestation, Catchment Area Treatment, Fisheries Management, organizing Medical / Vaccination Camps, Educational Institutions, Peripheral Development, organizing Sports / Cultural Festivals, Melas etc. In order to promote education facilities in remote areas, NHPC’s initiatives are as under: i) Constructing NHPC College of Science, Technology, Arts and Commerce at Tawang, Arunachal Pradesh. ii) Setting up a Hydro Training Institute in Srinagar, Jammu and Kashmir. iii) Setting up an Engineering College in Bilaspur, Himachal Pradesh in partnership with NTPC. iv) Provide financial assistance of about Rs. 5 crore to develop infrastructure for a new ITI in Sikkim. Apart from this, NHPC is actively pursuing the “National Skill Development Mission” by adopting Industrial Training Institutes (ITIs) in three states viz. Arunachal Pradesh, J&K and Uttarakhand so that up-gradation and modernization of the institutes can be carried out. Eleven(11) ITIs have already been adopted (5 in J&K, 4 in Uttarakhand and 2 in Arunachal Pradesh) through Public Private Partnership (PPP)/ Vocational Training Improvement Programme / Centre of Excellence (CoE) Scheme. The several proactive measures include infrastructure development, training to Instructors and conceptualization and implementation of a Unique Scholarship Scheme for meritorious trainees of ITIs which is evaluated and awarded on quarterly basis. Projects under Construction Construction activities on the following 10 projects with a total installed capacity of 4502 MW are in full swing. 1. Chutak H.E. Project (44MW), Jammu & Kashmir · Barrage concreting, Head Race Tunnel (HRT) lining & Surge shaft lining completed. · Pressure shaft concreting is in progress. · Erection of all Radial gates completed. · Project is scheduled for commissioning in August, 2011. 2. Chamera H.E. Project Stage-III (231MW), Himachal Pradesh · Dam concreting, HRT lining and Power House civil works almost completed. · Erection of Radial gates, Intake gates & trash rack etc. are in progress. · Pre commissioning of Unit-1&2 has been completed. · Boxing up and run-out testing of Unit-3 in progress. · Project is scheduled for commissioning in August, 2011. 3. Nimoo Bazgo H.E. Project (45MW), Jammu & Kashmir · Cellular Wall Concreting and Power House excavation completed. · Dam & Power House Concreting is in progress. · Erection of Penstock Liner completed and all the Radial gates erected. · Erection of Spiral Case of Unit-I, II & III has been completed. · Project is scheduled for commissioning in October, 2011. 4. Uri H.E. Project Stage-II (240 MW), Jammu & Kashmir · Dam concreting, HRT lining, Power House Concreting, Surge shaft lining & TRT overt lining almost completed. · Erection of Radial gates, Pressure shaft liner etc is in progress. · Unit-1 boxing up completed and in Unit-2 & 3 boxing up is in progress. · Project is scheduled for commissioning in December, 2011. 5. Parbati H.E. Project Stage-III (520MW), Himachal Pradesh · Rockfilling in Dam and Spillway control structure concreting are in advance stage of completion. · Head Race Tunnel excavation completed and overt concreting is in progress. · TRT overt lining almost completed and Power House concreting in progress. · Concreting of Generator barrel completed in Unit-1. In Unit-2 erection of Spiral casing completed. · Project is scheduled for commissioning (one unit) in January, 2012. 6. Teesta Low Dam H.E. Project Stage-III (132 MW), West Bengal · Concreting of Intake, Cellular wall and Power House almost completed. · Barrage Concreting is in progress. · Erection of Penstock completed. · Erection of Radial Gates, Intake gate and fish ladder gates are in progress. · Unit axis alignment and box up of Unit-1 completed and is in progress for Unit-2. · The Project is scheduled to be commissioned in May, 2012 with one unit in March, 2012. 7. Teesta Low Dam H.E. Project Stage-IV (160MW), West Bengal · Excavation for Dam Spillway and Power Dam completed. · Concreting in Spillway Glacis, Dam piers, Power Dam, power house and Intake structure is in progress. · Erection of Penstock liner, Radial gates and flushing gates is in progress. · Erection of Draft Tube Liner in all units has been completed. · Erection of Spiral Casing in Unit-1&2 is under progress. · The Project is scheduled for commissioning in December, 2012. 8. Parbati H.E Project Stage-II (800 MW), Himachal Pradesh · Dam Concreting and HRT excavation approx. 85 % completed. · HRT Concrete lining approx 46% and Power House concreting 39% completed. · Concreting in Power house work is in progress. · Project is scheduled for commissioning in July, 2014. 9. Subansiri Lower H.E. Project (2000 MW), Arunachal Pradesh. · Dam Excavation 94% and Dam Concreting 34% completed. · HRT Heading excavation 90% and HRT Concrete Lining 29% completed. · Power House Concreting 32 % completed. · Fabrication of Pressure Shaft Liner at site workshop under progress and 9 % erection has been completed. · Project is scheduled for commissioning in August, 2014. 10. Kishanganga H.E. Project (330 MW), Jammu & Kashmir · Excavation of Adit 1 to HRT, Inlet Adit to HRT and adit-1 of pressure shaft has been completed. · Excavation of Main Access Tunnel Power House, Underground excavation of TBM Adit and at various Face of HRT are in progress. · Spillway excavation also started and is in progress. · Project is scheduled for commissioning in January, 2016. Awards & Accolades won: During the year 2010-11 NHPC received various prestigious awards. Some of the important awards are enlisted below: · NHPC has been conferred with India Power Award 2010 by Council of Power Utilities for ‘Social and Community Impact’ on 11.11.2010 in recognition of NHPC’s outstanding work under Corporate Social Responsibility. · NHPC has been conferred with the ‘Best PSU in creating Alternative Energy Resources’ award at the 2nd Infrastructure Excellence Awards on 21.2.11. · Adjudged as the top Indian company under the Power Sector at the Dun & Bradstreet- Rolta Corporate Awards 2010 for its contribution to the Indian economy. · Conferred with the ‘Gentle Giants Award” under Non-Manufacturing Mini Ratna Category by Dalal Street Investment Journal. · Conferred with CIDC Vishwakarma Award 2011 under the category for ‘Social Responsibility’ on 7.3.11. The award recognizes the best practices adopted by NHPC and its overall contribution to the Indian construction industry. · Awarded “First Prize” by Ministry of Home Affairs, Government of India under India Gandhi Rajbhasha Award programme for outstanding work in implementation of Rajbhasha amongst Public Sector Undertakings located in Region ‘A’ for the year 2008-09. · Awarded First Prize for 2008-09 and Second Prize for 2009-10 for outstanding work in implementation of Rajbhasha amongst Power Sector Utilities. ***** Faridabad 27.5.2011 ANNEXURE-A PROJECTS UNDER CONSTRUCTION Project State Capacity Nimoo-Bazgo Jammu & Kashmir 45 MW Chutak Jammu & Kashmir 44 MW Kishanganga Jammu & Kashmir 330 MW Uri-II Jammu & Kashmir 240 MW Parbati-II Himachal Pradesh 800 MW Chamera-III Himachal Pradesh 231 MW Parbati-III Himachal Pradesh 520 MW Teesta Low Dam-III West Bengal 132 MW Teesta Low Dam-IV West Bengal 160 MW Subansiri Lower Arunachal Pradesh 2000 MW TOTAL 4502 MW PROJECTS UNDER GOVERNMENT CLEARANCE Project State Capacity Kotli Bhel-1A Uttarakhand 195 MW Kotli Bhel-1B Uttarakhand 320 MW Kotli Bhel-II Uttarakhand 530 MW Dibang Arunachal Pradesh 3000 MW Tawang-I Arunachal Pradesh 600 MW Tawang-II Arunachal Pradesh 800 MW Teesta-IV Sikkim 520 MW Loktak Downstream (JV)1 Manipur 66 MW Pakal-Dul & Other Projects (JV)2 Jammu & Kashmir 2120 MW Tipaimukh (JV)3 Manipur 1500 MW TOTAL 9651 MW 1 JVC formed between NHPC and Govt. of Manipur. 2 Promoters Agreement signed on 21.12.2010 amongst NHPC, JKSPDC and PTC. 3 MoU signed on 28.4.2010 amongst NHPC, SJVNL and Govt. of Manipur.