Organisational Study

East Point College of Higher Education

Bangalore

A project on NHPC

Submitted by
Bablu Gogoi MBA 3rd semester

East Point College Of Higher Education

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Organisational Study

NHPC
01. Industry profile 02.Company profile 03.Products and services 04.Functional units 05.SWOT Analysis 06.Conclusion

East Point College Of Higher Education

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Organisational Study

Industry profile

NHPC Ltd is a Mini-Ratna Category-I Enterprise of the Government of India. The company is one of the largest organisations in the field of hydro power development in the country. The company is a hydroelectric power generating company dedicated to the plan ning, development and implementation of an integrated and efficient network of hydroelectric projects in India. They execute all aspects of the development of hydroelectric projects, from concept to commissioning of the projects. NHPC Ltd was incorporated on November 7, 1975 as a private limited company under the name National Hydro Electric Power Corporation Pvt Ltd. In April 2, 1986, the company was converted into a public limited company. The company was established with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects. Later, they expanded their objects to include development of power in all aspects through conventional and non-conventional sources in India and abroad. During the yea r 1976-77, the company received Loktak hydroelectric project with a capacity of 105 MW from Government of India and in the next year, they received Baira Siul hydroelectric project with the capacity of 180 MW. In the year 1982 -83, the company commissioned the Baira Siul power station in Himachal Pradesh. During the year 1983 -84, the company commissioned all the units Devighat power station in Nepal and Loktak power station (105 MW) in Manipur. During the next year, they set up a Hydro Power Training Institu te at the Baira Siul hydroelectric project to train operators and supervisory staff. During the year 1987 -88, the company established a satellite telecommunication network up to link various projects. During the year 1989 -90, the Government of India upgraded the company from a Schedule B to a Schedule A corporation. During the year 1992 -93, the company set up a consultancy wing to provide a range of specialised services in the investigation, design, construction and operation of hydel projects. Also, they commissioned Tanakpur power station with the capacity of 120 MW in Uttarakhand. During the year 1995 -94, the company commissioned Chamera I power station with the capacity of 540 MW in Himachal Pradesh. Also, the company was awarded the lining work of Jawahar Tunnel in Jammu & Kashmir during the year. During the year 1995-96, they signed an agreement for execution of Kurichhu hydroelectric project with the capacity of 45 MW in Bhutan. During the year 1997 -98, the company commissioned the Uri power station with the capacity of 480 MW in Jammu & Kashmir and during the year 1999 2000, they commissioned Rangit power station with the capacity of 60 MW in Sikkim. During the year 2000-01, the company commissioned 45 MW Kurichhu power station in Bhutan.

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Organisational Study The company entered into an MoU with Government of Madhya Pradesh to exploit the

hydro electric potential of the Narmada basin by completing the Indira Sagar and Omkareshwar projects. Also they entered into an MoU with Government of Jammu & Kashmir to exploit the power potential of the state. During the year 2003 -04, the company commissioned the 300 MW Chamera - II power station in Himachal Pradesh. During the next year, NHDC, a joint venture company commissioned 1,000 MW Indira Sagar hydroelectric project in Himachal Pr adesh. During the year 2006-07, the company added 390 MW generating capacity with the commissioning of Dul Hasti Hydroelectric Project in Jammu & Kashmir. The company entered into an agreement with Government of Bhutan for preparation of DPR of Mangdechhu project with the capacity of 672 MW in Bhutan. During the year 2007-08, the company commissioned 510 MW Teesta -V power station. NHDC, the joint venture company commissioned 520 MW Omkareshwar hydroelectric project in Madhya Pradesh. The company entered into an MoA with the Government of Arunachal Pradesh to execute the Dibang multipurpose hydroelectric project. Also, they entered into an MoU with the government of Manipur to exploit the hydro electric potential of the tailrace discharge of Loktak Downstream Hydroelectric Project. During the year, the company signed an MoU with the Ministry of Rural Development, Government of India and Government of Bihar for construction of Rural Roads and the maintenance under Pradhan Mantri Gram Sadak Yogna in Bihar. The name of the company was changed from National Hydro Electric Power Corporation Ltd to NHPC Ltd with effect from March 28, 2008. The company was conferred with Mini-Ratna (Category I) status by the Ministry of Power with effect from April 28, 2008. During th e year 2008-09, the company entered into an MoU with the Government of Jammu & Kashmir, JKSPDC and PTC to incorporate a joint venture develop the Pakal Dul and other hydro projects in the Chenab River Basin. Also, the company along with NTPC, PFC and Tata Consultancy Services Ltd incorporated a joint venture company, namely National Power Exchange Ltd. During the year 2009 -10, the company along with NTPC, Powergrid Corporation of India Ltd and Damodar Valley Corporation incorporated a joint venture company, namely National High Power Test Laboratory Pvt Ltd. In January 8, 2010, the company signed an agreement with Ministry of External Affairs (MEA), Government of India for taking up Additional Investigations and Preparation of Updated Detailed Project Report s for 1200 MW Tamanthi HE Project and 642 MW Shwezaya HE Project in Myanmar. In March 23, 2010, the company has signed an agreement with Department of Energy, Royal Govt. of Bhutan for providing engineering & consultancy services relating to pre-construction activities of Mangdechhu Hydroelectric Project (720 MW) in Bhutan at a total cost of Rs. 11.67 crore. In April 28, 2010, an MoU was signed amongst NHPC Ltd, Government of Manipur and SJVN Ltd for formation of a joint venture company for implementation of 1500 MW Tipaimukh Hydroelectric (Multipurpose) Project in Manipur. NHPC Ltd, SJVN Ltd and Government of Manipur shall have a share holding of 69%, 26% and 5% respectively. The Unit -I of SEWA-II HE Project started
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Organisational Study commercial operation with effect from Jun e 29, 2010. Also, the SEWA -II H.E. Project (120

MW) started commercial operation with effect from July 24, 2010, consequent upon successful trial run of balance Unit-II (40 MW) of the Project. The company is currently engaged in the construction of 11 addi tional hydroelectric projects, which are expected to increase the total installed capacity by 4,622 MW. Also, the company is awaiting the Government sanction for a further five projects with an anticipated capacity of 4,565 MW .

Company profile NHPC ltd. Formerly known as National Hydroelectric Power Corporation ltd. Was estd. In 1975 as a Government of India owned company under companies act 1956 to undertake development of hydroelectric power in the central sector covering all aspects such as investigations, planning designs, construction ,operation and maintenance of hydroelectric projects. Now NHPC is a mini Ratna Catagory-1 enterprise of the Govt. of India with an authorized share capital of Rs.15,000 cr and an investment base of about Rs.40,471 cr. NHPC is ranked as a premier organization in the country for development of hydropower. The company successfully concluded its IPO worth over Rs.6,000 cr and became listed company on NSE and BSE with effect from 1st September 2009. The company is accredited with integrated Management System in compliance with PAS 99:2006 for the requirement of ISO 9001:2008,ISO 14001:2004 and OHSAS 18001:2007 for its quality, Environmental and Occupational Health and Safety Management System.

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Total installed capacity of the power stations owned by NHPC is 5295 MW (including ISP and OSP Project jointly owned with Government of Madhya Pradesh , in which NHPC is the Major stake holder) and 23 states/ union territories of India receive power from NHPC power stations. New hydroelectric power projects having aggregate capacity of 4502 MW are under implementation in different parts of India by NHPC .Subansiri Lower hydroelectric project is one of such projects.

Project background
Subansiri Lower H.E . project was transferred to NHPC by Ministry of Water Resources and Ministry of power during year 200 0. TEC to the project has been accorded during year 2003 The project is being executed under the following work packages by different agencies:

Lot SSL 1(Package for which CAR policy is to be taken): The package is related with
Dam and appurtenant works . The Contractor for the work is M/s BGS SCS-SOMA JV..M/s BGS and SGS are Russian Companies and M/s SOMA enterpris e is an Indian company based in Hyderabad .As on 1 st March 2011 about 40% work have been completed . The details of the works under this lot are as below :y Construction of 5 nos . 9.5 m diameter horse shoe shaped diversion tunnels including inlet and outlet structures , nallah training works and plugging of tunnels on completion of Dam works. Construction of upstream and downstream Earthfill /Rockfill cofferdams of height 31 m and 21 m respectively including maintenance and removal of cofferdam on completion of dam work. Construction of 116 m height (above the sea bed level) concrete gravity dam 271 m long at top including 117.5 m long gated orifice type spillway. Construction of 64 m X 167.5 m performed plunge pool.
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y y

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Organisational Study y Construction of 50 m deep 410 m long cut off wall below the dam foundation.

Lot SSL 2: Related to Civil works of Intake Structure, water conductor system, power house
and appurtenant works is being executed by measures L&T.

Lot SSL 3: Related to Hydro Mechanical works of the Project is being executed by M/s
ALOSTOM.

Lot SSL 4: Related to Surge Tunnels of the Project is being executed by M/s L&T . Lot SSL 5:Related to Hydro Mechanical works of the Project is being executed by M/s
Texmaco. Expected time of completion for Lot SSL-1 is December, 2013 and for the Project as a whole is August 2014.

1.3

Project Layout

Subansiri Lower HE Project envisages utilization of 91 m of maximum gross head by construction of 127 m high concrete gravity dam above deepest foundation level.Water is led to powerhouse through 8 nos. 9.5 m diameter headrace tunnel. The powerhouse is proposed to house 8 units of 2 50 MW each. The design energy works out to be 7421.59 MU

2.
2.1

DESCRIPTION OF PROJECT COMPONENTS

Dam

Considering the topographical details and provision of low - level orifice type spillway, a 116 m high concrete gravity dam is planned above river bed level . the deepest foundation level is at E1 83 m and top of the dam at E1 210 m. The length of the dam at top will be 271 m including 175.5 m for spillway. For construction of the dam, river Subansiri shall be diverted through five numbers horse shoe shaped diversion tunnels each of 9.5 m finished diameter provided on left bank .For river diversion proposed upstream and downstream cofferdams shall be of 31 m and 21 m height respectively.

2.2
2.2.1

Water conductor system

HRT intake structure
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Organisational Study The HRT intake structure are located on right bank of the river to suit topography. This

comprise of 8 numbers of vertical intakes , one of each head race tunnel .The intake structure of four intakes have been clubbed and hence two sets of i ntake structures have been plant . 2.2.2 Head race tunnels

Eight no. of 9.5 m finished diameter horseshoe shaped Head Race Tunnel(HRT) are envisaged to convey water from intake to eight pressure shaft and then to power house . 2.2.3 Surge Tunnels

Eight nos. Of diameter 9.5 circular / horse shoe shaped having varying length of 402 m to 485 m 2.2.4 Pressure shaft

Eight nos. Of pressure shaft feeding individual unit has been proposed . Pressure shaft have horizontal limbs of size 9.5 m (horsesho e ) /8 m (circular) at E1 155.75 m.The steel lined bottom horizontal limb of pressure shaft at E1 98 m has size 8 m (circular). Top and bottom horizontal limbs are proposed to be joined by a vertical steel lined 8 m diameter circular shaft.

2.3 Power House

Surface power house having overall size 285 m X 61 m X 64 m has been proposed .MIV value is proposed to be located at EL 88m on the u/s side of machine hall. Controlled block ,transformers as well as GIS have been located on various floors between mac hine hall and draft tube gates. The transmission conductor shall take off from powers over roof of GIS floor . As such no separate Switch yard area has been proposed .

2.4 Tail Race Tunnel

A tail race channel having width of 206 m has been provided to lead water from power house to river.

3.0 SALIENT FEATURES OF THE PROJECT

The salient features of the project are enclosed.

4.0 Location and status of access roads of sites project:

Subansiri Lower HE project (2000 MW) is loca ted in Dhemaji and Lower Subansisi districts in Assam and Arunachal Pradesh. The left bank of Dam will in the state of Assam and right
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Organisational Study bank of the Dam,Power House, Headrace Tunnel and tailrace channel etc. will be in the

state of Arunachal Pradesh. The projects township and Headquarter are located at gerukamukh ,district :dhemaji,state:Assam which is situated at a distance of 16 kms from gogamukh a road side town on national Highway-NH 52. Gogamukh is about 455 kms from Guwahati and 40 km from north Lakhimpur a district headquarter which is about 415 km from Guwahati. The nearest meter gauge railhead is Gogamukh and broad gauge railhead nawgaon situated in between north Lakhimpur & Guwahati on NH -52 which is about 350 kms away from project headquarter. Presently the Airports are located at Guwahati and lilabari (North Lakhimpur), which are well accessible to various other airports located in India. In addition to above helicopter services are availabl e from Guwahati to Naharlagun (Arunanchal Pradesh),which is situated about 100 km away from project headquarter. The access from Gogamukh to project headquarter is all weather double lane road.

Awards and Recognitions won

During the period under review NHPC has won many accolades in the form of awards as mentioned below:
y y y y y

Special Jury Award at the Asia Pacific Global HRM Summit for Innovative HR Practices. BML Munjal Award instituted by the Hero Group for Innovative Learning & Development Practices. Amity Award for CSR. SCOPE Excellence Award for CSR. 2nd Prize at the WIPS (Women in Public Sector) Meet in the category of Best Performing Enterprise for Women Empowerment Initiative

Projects commissioned
NHPC has added 1420 MW during the period under review by commissioning three projects. The 390 MW Dul Hasti Power Station was declared under commercial operation with effect from 7.4.2007. The Power Station was dedicated to the Nation on 26.4.2008 by Dr. Manmohan Singh, Honble Prime Minister of India. The beneficiaries of the Power Station are Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Uttarakhand, Rajasthan, Delhi and Union Territory of Chandigarh. The 510 MW Teesta Stage -V Project in Sikkim has been put under commercial operation during February/ March 2008. The beneficiaries of the Projec t are DVC,
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Bihar, Orissa, Jharkand, West Bengal and Sikkim. Power from this Power Station is being supplied to the beneficiaries @ Rs. 1.62/unit. The 520 MW Omkareshwar Project (under joint venture with Govt. of Madhya Pradesh) was commissioned during November 2007 against scheduled date of Feb.08.

Projects under Construction

1. Sewa II H.E. Project (120 MW), J&K Complete Dam excavation and 86 % concreting of Dam is over.  In HRT, 9370 m (92.92%) excavation has been completed.  Excavation of Surge Shaft and Powerhouse has been completed and 80.30% concreting has been completed in Power House.  Excavation and concreting of Pressure Shafts is in progress.


2. Teesta Low Dam H.E. Project Stage-III (132MW), West Bengal

 In Barrage Bays 3 to 7 and Power House, excavation is over and about 97.25% and 62.45% concreting has been done respectively.  Intake Structure excavation is almost over and 97.60% concreting has been completed.  About 91.10% excavation of TRC has been completed.  Draft Tubes for all the 4 units have been erected.  Project suffered major setback due to unprecedented high intensity flash floods breaching the cofferdams in July07, causing flooding of all work areas. Again in Sept.07, floods re -occurred. However, works resumed on all fronts within a minimum time.

3. Subansiri (Lower) H.E. Project (2000 MW), Arunachal Pradesh

 Power House excavation was completed on 28 th August 2007.  Diversion Tunnels completed.  Construction of 1 st Stage Coffer Dam and subsequently river diversion of river Subansiri was successfully achieved in December 2007.  Excavation of Dam foundation started in January, 2008.

4. Uri II H.E. Project (240MW), J&K

 Concreting up to River Bed Level in Dam is completed.  In Open Channel & Desilting Chamber 88.70% excavation has been completed.
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 Head Race Tunnel day lighted & 71.70% of Tail Race Tunnel heading excavation completed.  61.20% of Power House excavation completed

Functional Units

Human Resource Deaprtment

When is training required at NHPC?
y y y y y y y y

In initial days of starting a job At the time of technological updation When the employee is about to be promoted When effectiveness and efficiency of an employee is low When an employee is transferred to another department When the top level management sees any changes in designation At the time of mergers and acquisitions When the company wants to go global

Why is Training required?

y For personality development y To train for finer skills and technicalities y For knowledge updation
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y To familiarize the employees with the companys working culture y For dealing with different people in different manners y To make employees more effective and efficient which will ultimately increase productivity y For optimum utilization of resources y For creativity enhancement y For caliber recognition y For creating awareness about merits and demerits of the company y To train the employees on their strength and avoid their drawbacks through removal

Training Philosophy of NHPC

The basic philosophy is to use training as an effective tool for performance improvement of the individual,the team and the organization and in transforming NHPC into a learning organization

Objectives
y y y y y y y
Make learning one of the fundamental values of the corporation Ensure value addition through training to the overall business process Institutionalize learning opportunities that supplement work experience Integrate organizational and individual developmental needs Provide linkage between the different functionaries of training activity Provide linkage of training activity with overall Human Resource function Make performance improvement in every sphere of work

Classification of training needs

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y y y y

Essenti l Desi ble Short-term Long-term

What are the essential short term needs?

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What are the desirable short term needs?

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What are the desirable long term needs?

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What are the essential long term needs?

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Training budget
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Training Need Anal sis

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y Training needs would be classified as essential and desirable along two time frames of short term and long term.

The identified needs would be prioritized in the following manner and would be addressed accordingly
y y y y

Priority A Priority B Priority C Priority D

Essential short-term Desirable short-term Essential long-term Desirable long-term

Training needs identification in case of executives would be done by the executive concerned in consultation with his/her reporting officer in the training needs form. Training needs identification in case of non-executives would be done by their reporting officer in the training needs. The departmental training co-ordinator shall trigger the TNA exercise from 1st September,every second year,with the distribution of training need forms.He/she would consolidate and submit the filled-up training need forms of executives and Non-executives,of his/her department concerned to be respective training center by 30 th October.He shall play a proactive and dynamic role by interacting with maximum number of employees at all levels and shall keep data available of the latest training courses available,list of training employees etc.

A department-wise analysis would be done by training centre of unit and with heads of department for evolving the yearly training calendar for the next two years,by 15th November in consultation with HRD,Centre for Excellence The training calendars so prepared,shall be sebt for approval of HRD,center for Excellence by 30 th November.

The heads of HR of regions and HRD,C.O. shall meet before 15th December for sharing training calendars of the projects/stations of the
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respective region and for providing inputs for the training calendar of HRD,Centre for Excellence

Training calendar of NHPC

The heads of training from the projects would meet in the regional head quarter during the 1st week of January to share training calendars.They would also provide inputs to RHQ/HRD regarding programmes to be assigned to RHQ/HRD from out of training needs identified by the employees of their respective projects. Each training Center/ HRD,Centre for Excellence shall bring out,by 15th February every year,a Training Calendar,specifying the schedules of the programmes,both planned interventions and need based interventions,planned to be conducted by it during the following training year

Each training Centre shall circulate on quarterly basis calendar of programmes scheduled for the next three months to all HODs and other training agencies.

Copies of training calendar of one project would be circulated to other training centres and HRD, Center for Excellence by 15th March,for need-based utilization.

Nomination System
y To ensure that employees are nominated to training in areas which are relevant to their duties or which have been identified as their developmental needs. y To ensure that opportunities to attend training programmes are made available to all employees to achieve the training target of
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average of seven mandays of training in a training year for each employee.

Categorization of programmes
On the basis of duration,training programmes would be categorized as follows
y Short-duration up to three days y Medium-duration four days to ten days y Long-duration above ten days training

Limit on the number of programmes

An employee may be nominated for training programmes with the limits stipulated herein
y Short-duration y Medium-duration y Long-duration

Maximum of three in a year Maximum of two in a year Once in two years

Why evaluation is important?

y For further improvisation of training programmes y To get the employee maximum benefit y To make sure that the faculty which has not been effective shall not be repeated y To employees opinions y For the growth of company y To make the employees feel that their opinions matter.

Methods of evaluation
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Through individual feedback Group discussion Through oral test and MCQ Giving the employees a real life situation to see how do they workout things on the basis of new knowledge gained y By polling(voting) y By judging their performance in the due course of time after the programme has been conducted y By raving comments or suggestions of employees in a ballot box soon after the training programme is over.
y y y y

Training Evaluation
Training Evaluation would be done at three leves:
y Pre-training evaluation y Programme feedback y Impact assessment Pre training Evaluation - In this case the HRD/HR wing shall review the programme design,content etc.In the light of feedback obtained from a sample of participants. Programme Evaluation - The training center shall seek participant Feedback at the end of the training programme in the programme feedback form Impact assessment - The information would be collected through the impact assessment form(IAF) after the completion of six months programme.

Finance
y The total PIB cleared cost is 6285.33cr,out of which Rs 3587.33 Cr has been incurred till Dec 09 which is 57% of total.
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y Rs. 69.38 Cr. Has been given to arunanchal Pradesh forest department for compensatory afforestation over 6400 ha degraded forest land. y Assam state forest department has been given Rs. 11.80 Cr. For compensatory afforestation over 1600 ha degraded forest land. y Rs. 300 Cr. Has been deposited in the registry of hon ble supreme court of india and Rs. 177.39 lacks has been deposited with assam state forest department as NPV for the use of forest land. y NHPC has also paid Rs.817.27 lakhs to Arunanchal Pradesh state f orest department for implementation of catchment area treatment plan.

Financial improvement of NHPC in the year 2011



The company has achieved net profit after tax of Rs 791.05 crore during the 1st quarter of FY 2011-12 which is 47.19% higher than the net profit after tax of Rs 537.42 crore earned during the corresponding period of the previous year. Registered Sales Turnover of Rs 1431.41 crore which is 40.37% higher than the Sales Turnover of Rs 1019.71 crore registered during the corresponding period of the previous year. Board of Directors in its 335th meeting held on 30.06.2011 recommended dividend of Rs 0.60 per share for the financial year 2010-11. NHPCs Operating Power Stations generated 6284 Million Units (MUs) during the 1st quarter of FY 2011-12 surpassing the Excellent MoU target of 5679 MUs by 10.7%. The generation of 6284 MUs achieved during 1 st quarter of FY 2011-12 was 10.5% higher than the generation of 5689 MUs achieved during the 1 st quarter of FY 2010-11. During the current financial year till 9th August 2011, NHPCs Power Stations have generated 9451 MUs against the Excellent MOU target of 8996 MUs.

M/s Chenab Valley Power Projects (Private) Limited has been incorporated on 13.06.2011 for development of Pakal Dul, Kiru & Kwar projects in J&K with an aggregate installed capacity of 2120 MW. Memorandum of Understanding (MOU) signed with Orissa Hydro Power Corporation Limited (OHPC) and Government of Orissa for formation of a Joint Venture Company with OHPC to develop three Hydroelectric Projects, Sindol Stage I, II & III in the Mahanadi river basin of Orissa with an aggregate capacity of 320 MW. Memorandum of Understanding (MoU) signed with Russias largest power generating company JSC RusHydro on 23.05.2011 for cooperation in the field of hydropower development, renewable energy sources and other areas of power generation.
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Environmental Clearance accorded by Ministry of Environment and Forests (MOEF) to Tawang Stage-I and Tawang Stage-II HE Projects on 10.06.2011. Concurrence meetings for Tawang-I and Tawang-II were held at CEA on 10.06.2011 and 30.06.2011 respectively. FAC has recommended for approval the forest clearance proposal of Kotlibhel StageIA HE Project for diversion of 258.737 ha forest land. River has been successfully re-diverted through Spillway Radial Gates at 44 MW Chutak H.E. Project, Jammu & Kashmir. River successfully re-diverted over the dam spillway on 23.06.2011 at Chamera H.E. Project Stage-III (231MW), Himachal Pradesh.

After commissioning of Radial gates, Diversion tunnel gate was lowered and river successfully re-diverted through spillway on 15.07.2011 at Uri H.E. Project Stage-II (240 MW), Jammu & Kashmir. Tunnel Boring Machine has been commissioned and boring of HRT has been commenced w.e.f. 13.05.2011 at Kishanganga H.E. Project (330 MW), Jammu & Kashmir. In Parbati-II Project, Dam and Intake concreting (175000 cum cumulative) has been achieved on 27.06.2011 with excellent MoU rating. Public Hearing of Loktak Downstream HEP has been conducted on 07.06.2011. With the implementation of Finance and associated modules in the balance 23 locations of NHPC w.e.f. 01.04.2011, ERP has been operationalized at all the locations of NHPC, providing standard processes in various functional areas across the organization. Webcasting of events from NHPC Corporate office was launched on 04.04.2011. This would enable employees to view events live from all locations connected to NHPC network. Work of Renovation & Modernization of Varzob HE Project in Tajikistan is in progress as per schedule. Major civil works have been completed in March 2011. NHPC conferred with the Gentle Giants Award under Non Manufacturing - Mini Ratna category by Dalal Street Investment Journal on 21.04.2011. NHPC adjudged as the Top Indian Company under the Power Sector at the Dun & Bradstreet Rolta Corporate Awards 2010 on 26.04.2011 for its contribution to the Indian economy.

 

Financial performance during 2007-2008

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* Registered a net profit (after tax) of Rs. 1,002.06 crore against the net profit (after tax) of Rs. 9,24.80 crore registered during the previous financial year.

* Achieved an all time high sales turnover of Rs. 2,311.47 crore as against Rs. 1,962.76 crore achieved during the year 2006 -07 * Poised to declare an all time high dividend for the year 2007 -08. An interim dividend of Rs. 100 crore for the year 2007-08 has already been paid to Government of India. * Better business management coupled with prudent financial policies like efficient sales realization, better grid management, efficient treasury management systems etc. have resulted in sound financial position which made the Company self reliant for the resources generation for ambitious capacity addition program in XI and XII Five year plans. * No budgetary support from Government during the year 2007 -08. * Enjoys highest credit rating i.e. AAA for domestic borrowings and rating equivalent to Sovereign rating for external borrowings from reputed international agency. * Signed financing agreements with PFC aggregating approximately Rs. 4,000 crore at most competitive terms. * Necessary financial closure of all ongoing projects in place. * Likely to come up with IPO in August 2008.

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Since its inception in 1975, NHPC has grown to become one of the largest organisation in the field of hydro power development in the country. With its present capabilities, NHPC can undertake all activities from concept to commissioning of Hydroelectric Projects.

DAM COMPLEX
Role of dam complex:

y To get the dam work executed as per technical specification and as per drawings issued by design division of NHPC. y To measure and record execution quarties by the contractor and to process the bill submitted by the contractor. y To sort out the design related issue with the help of design div ision. y To asses the material requirements and convey the same timely to procurement division. y To asses financial requirements for the works and convey the same to finance wing for the arrangement of funds. y To sort out contractual issues with the help of contract division. y To see whether the contractor is meeting statutory requirements like following labour laws etc.

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SWOT Analysis of NHPC

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses ( W), and those external to the firm can be classified as opportunities ( O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis . The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The fo llowing diagram shows how a SWOT analysis fits into an environmental scan :
SWOT Analysis Framework

Environmental Scan / Internal Analysis /\ Strengths Weaknesses | SWOT Matrix \ External Analysis /\ Opportunities Threats

Strengths
A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:
y

patents
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y y y y y

strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

Weaknesses
The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:
y y y y y y

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength th at competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment .

Opportunities
The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:
y y y y

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

Threats
Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

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y y y y

shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

Strength of NHPC
Crisil has revised its outlook on the borrowing programmes of National Hydroelectric Power Corporation Ltd (NHPC) to Negative from Stable. The change in outlook is driven by the increased level of NHPCs capacity expansion plans, its aggressive funding of these projects, and the resultant impact on its credit profile. NHPCs borrowing programmes include bond issues of Rs 1,000 crore and Rs 500 crore. NHPC has an installed capacity of 3145 mw. Crisil believes that NHPCs capital structure will deteriorate owing to the pl anned capacity additions over the medium to long term, and improve thereafter as these projects come on stream. Also, NHPCs liquidity is constrained by the weak credit profile of its customers, primarily the state electricity boards (SEBs). Crisil believe s that although the current stringent norms help central power sector utilities collect payments from the respective state funds parked with the RBI, thus minimising the risk, the SEBs repayment behaviour will remain a monitorable . NHPC has a strong operating efficiency, with a high capacity index factor (CIF) of 98% (in 2005-06). The company recovers all its fixed costs at a level of 90 % CIF; the high actual CIF therefore ensures high recovery and stable profitability over the medium term. NHPCs cash flows are expected to remain strong, given the negligible costs in generating hydroelectric power and the stable profitability provided by a regulated tariff environment. Crisil expects NHPCs strong project management skills to enable it to complete its ca pacity addition projects on time.

Opportunities for NHPC

NHPC has well established talent management systems in place to ensure that the company delivers on its promise of providing exponential growth and challenge to all employees
y

Performance

anagement - NHPC has a standardised and formalised

performance management system. A KPA based system is designed to assess functional, managerial and potential competence in an objective and transparent manner. The system is designed to accomplish the overall organisational vision and mission by linking individual performance to the companys objectives and strike a balance between performance and competence to help individuals excel in their fields.

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y Career Paths - A formal career path and development process exists in

NHPC. All career paths have an underlying management structure. Promotions within each career path are aligned with the needs of the organisation. Succession criteria for leadership positions in each career path have been identified, which provide basi s for job rotation. Anyone joining the organisation can choose to pursue a business, function or staff career path and will be put through specific training interventions and job rotation path towards becoming a business, function or staff head .

y Leadership Development - Potential employees are assessed for

leadership competence and are groomed to occupy leadership positions in the company. We have a system that enables measurement of leadership effectiveness, gap identification against an identifi ed set of leadership competence. Individual development plans are made based on the gaps identified to ensure that the process of development and growth is meaningful .

Threat for NHPC

From a hydro-engineering point of view, the immense potential of hydrop ower in India is yet to be harnessed. For an engineer, its mandatory to build a dam for producing electricity. One of my hydro -engineer colleagues in Indias government argues, the hydro power is the best option in the Indian context considering the large volume of water going to waste. Besides, hydro -power is better than thermal power as the former is cheaper, can be generated and utilised as per the need without any overhead costs for idle runs. Also the thermal units take a longer time to be restarted, adds the Engineer who is preparing mega hydro -power projects in Orissa. The Engineer tries to convince me that there are no flaws in hydro power except building a reservoir, and sometimes commissioning of the projects takes more time. The governments last resort is run of the river (RoR) projects which are the small ones with less producing capacity. This is explored when one does not have the other option. For anti-dam activists hydro-power is just an option, not mandatory. They view any estimate on hydropower - the very fact of putting a number with an electricity unit as flawed and fraudulent. From this perspective, water -the-resource, has other utilities and needs more significant than than generating electricity. Anti -dam activists point out the centralized character of large hydro power projects, with high costs, potential under performance, violations and inequity as the basic flaws .

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Conclusion
The trust in government and its bureaucracy has been eroding in India thereby leaving more avenues for contested domains. It has been very difficult transforming the government intentions to produce electricity from the large water infrastructures after the Sardar Sorvar Project debacle in the early 1990s. The small hydro projects are being cautiously implemented by the governments. However in some cases the adverse socio-economic and environmental impacts of large dams can be mitigated through informed de cision-making, transparency and engagement of all stakeholders. In all probability, the advantages and disadvantages of hydro -power structures, large or small, have to be discussed with people transparently. The present social and environmental assessments of the hydro projects are flawed from many angles which triggers real and imaginary conflicts of interest. To settle the Peoples concern, after two years of debate the Indian Cabinet has recently passed the National Policy on Rehabilitation and Resettlem ent, 2007. In particular, there has to be clear recognition in all decision making related to dams that a balance needs to found between the needs for use of renewable energy, and the minimization of possible harmful effects on the environment - especially mountain environments where most of the hydro-potential resides. Mountain regions have particular potential for use and production of renewable energy, not only hydro, but also biomass, solar, geothermal or wind; clearly, the adverse environmental effects on fragile mountain ecosystems need to be carefully assessed and prevented before developments take place. Also, possible social issues between upstream (often poor mountain communities) and downstream communities (often the main beneficiaries of energy production) need to be addressed.

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BIBLIOGRAPHY:
y www.google.co.in y NHPC office y www.nhpcindia.com

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