1. A
Comprehensive Report
on
MICRO ANALYSIS
Of
WANAKBORI THERMAL POWER STATION
submitted in the partial fulfilment of the requirements for the award of
the degree of
MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
Project Guide:
PROF.H.J.JANI
SUBMITTED BY:
AKASH CHOKSI (1OM44)
ANIL CHAUHAN (10F45)
MADHURRAM CHUDASAMA (10M63)
TEJAS VASAVA (10F76)
VIREN PATEL (10M79)
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
SARDAR PATEL UNIVERSITY VALLABH VIDYANAGAR (388120)
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
2. CERTIFICATE
This is to certify that the Project entitled “MICRO ANALYSIS OF WANAKBORI
THERMAL POWER STATION” has been carried out by AKASH CHOKSI, ANIL
CHAUHAN, MADHURRAM CHUDASAMA, TEJAS VASAVA and VIREN PATEL under
my guidance.
PROF. H.J.JANI
(DIRECTOR& GUIDE)
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
3. DECLARATION
We hereby declare that the project work entitled “MACRO ANALYSIS OF INDAIN
THERMAL POWER GENERATION SECTOR” submitted to the SARDAR PATEL
UNIVERSITY, is a record of an original work done by us under the guidance of
PROF.H.J.JANI.
AKASH CHOKSI (10M44)
ANIL CHAUHAN (10F45)
MADHURRAM CHUDASAMA (10M63)
TEJAS VASAVA (10F76)
VIREN PATEL (10M79)
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
4. Abstract
This report focuses on various aspects of management in actual practice at WTPS, studied
during our visit to WTPS. It discusses various significant managerial points about HRM,
Financial accounts, stores, inventory, purchase, efficiency, etc. which help us in
understanding routine procedures.
Acknowledgement
This project report could not have been prepared, without help and encouragement from
various people. Hence, for the same reason. We would like to thank our professor H.J.JANI. It
was for his support that we got proper guidelines for preparing this project. We are extremely
thankful to Mr. S.D. Vaghela, Executive engineer, GSECL WTPS, Mr. G.S.Shah,
Executive Engineer, GSECL WTPS Mr. AR.NAIK GSCEL WTPS Mr.K.B.Rathava,
GSCEL WTPS, Prof.R.B.Choksi and Prof.D.B.Choksi for spending their valuable
time in constructive discussion. We are also thankful to staff of Efficiency Dept.,
WTPS for necessary rendered at various stages.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
5. TABLE OF CONTENTS
1. INTRODUCTION
1.1 Background
1.2 Achievements
1.3 Objectives of the project
1.4 Promoters and o wners
2. MARKETING AND SALES
2.1 Details of competitors
2.2 Generation forecasting and sales plan preparation
2.3 Taxes applicable on sales activity
2.4 Study of reporting system
3. PRODUCTION AND OPERTION
3.1 Design operation
3.2 Purchase management
3.3 Store management
3.4 Inventory control and valuation
4. FINANCE AND ACCOUNTS
4.1 Budgeting
4.2 Depreciation analysis
4.3 Interest and finance
4.4 Return on equity
4.5 Costing method
5. HUMAN RESOURCES
5.1 Organizing structure of WTPS
5.2 Promotion increment policies
5.3 Recruitment and selection
5.4 Salary structure
6. Business strategy and outlook
6.1 SWOT analysis
6.2 Future plan
6.3 Conclusion
Bibliography
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
6. CHAPTER 1
INTRODUCTION
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
7. 1.1 Background
This power station is located on the bank of river Mahi, about 10 K.M. Downstream of Wanakbori weir
and about 10 K.M. from Sevalia , Ta. Thasara, Dis. Kheda. It is 110 k.M. 85 K.M. and 35 K.M. from
Ahmedabad, Baroda and Godhara respectively.
This project constructed in two phase i.e. stage 1 and stage 2 each of 3 X 210 MW unit.
For stage 1 the foundation stone laid by late prime minister shri morarjibhai desai in 1978. Unit 1, 2, and
3 are commissioned on 23/03/1982, 15/01/1983 and 15/03/1984 respectively. These units are supplied,
erected and commissioned by M/S BHEL and provided boiler of American combustion design and
Russian designed LMW make turbines .the project cost for this stage was 259.09 corers.
For stage 2 the foundation stone laid by late prime minister smt .indira Gandhi in 1982. Unit 4, 5. And 6
are commissioned on 9/03/1986, 23/09/1986 and 18/11/1987 respectively. These units are also supplied,
erected and commissioned by M/S BHEL and provide high pressure boiler of American combustion
design and west Germany KWU designed turbines. These turbines are equipped with advance electronic
AUTOMATIC TURBINE RUNUP SYSTEM (ATRS) . The Project cost for this stage was 318.8 cores.
Including the unit no. 7 there are total seven nos. of turbo generator sets each having capacity of 210 MW
. 30000 RPM. 15.75 KV. 247 MVA at 0.85 p.f.
Being coal based thermal power station it is provide with coal plant comprise of being coal based
thermal power station. Each of having capacity to unload 10 wagons/hour. Primary crusher house
secondary crusher house and connecting network of coal belt having 2000 Mt/Hour coal of flow capacity
with stacker – reclaimed having capacity. The required coal is getting through coal India authority from
coal mines of Bihar , M.P. Orissa, West Bengal . the coal is transported from coal mines to Sevalia via.
Ratlam-Godhara railway track. Generally 300 wagons of coal being received here to daily to meet the
requirement is generally 19000 tones per day.
The main water sources for water make up to power house are Mahi river main canal and tube wells. The
designed water requirement /unit is 13 cusec. The stage wise clarifier and D.M. plant is provide to
remove the impurities from raw water to make the water suitable for boiler. Total 1830 employees are
working including 425 engineers. Compare the national average of 2.6 employee/MW the staff working
at the power station is 1.45 employees/MW which is quit less.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
8. 1.2 Achievements
Central electricity authority award to WTPS
1. In 1987 for 5548 MUS generation Rs. 3 laces
2. In 1989 for 6162 MUS generation Rs. 4 laces
3. In 1992 for reduction in sp. Oil consumption Rs. 21.15 laces
Maximum coal wagon unloaded in one day: 522 wagons (09/12/1996)
Maximum coal wagons released to railway:522 wagons(09/12/1996)
1.3 Objectives of the Project
-To study the operation management of the WTPS
- To study the financial performance of the WTPS
- To study the marketing analysis and human resources police and procedures
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
9. 1.4 PROMOTERS AND OWNES
The promoters and owners WANAKBORI THERMAL POWER STATION works under the umbrella of
GUJARAT STATE ELECTRICITY CORPORATION LIMITED
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
10. CHAPTER 2
MARKETING AND SALES
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
11. 2.1 Details of competitor
Torrent Power
Torrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 45 billion
Torrent Group. With an all-round experience in generation, transmission and distribution of power, and a
proven track record of implementing large power projects, Torrent Power is the most experienced private
sector player in Gujarat.
2.2 Generation forecasting and sales plan preparation
To forecast the annual generation of one unit having install capacity 210 mega watt total expected
operating hours are calculated. This calculation is based on annual over heading period, forced outage,
expected average load of machine etc. The calculation sample given below table
CALCULATION
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
12. 2.3 Taxes applicable on sales activity
Tax on income for FY 2010-11 to FY 2015-16
GSECL has projected the tax on income for the control period for the FY 2011-12 to
2015-16 on the basis of MAT rate @ 19.934% on the return on equity portion
generated as detailed in the Table below
SOURCE : www.gercin.org/
2.4 Study of reporting system
Types of Reports
Daily efficiency report
Generation report
Outages and machine report
Coal consumption report
Auxiliary consumption report
Unscheduled report
Monthly report
Monthly performance report
Generation loss report
Fuel report
Monthly Outage report
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
13. CHAPTER 3
PRODUCTION AND OPERATION
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
14. 3.1 DESIGN OPERATION
Management Quality
There are many tasks to perform managing quality such as process strategy, location strategies, layout
strategies, human resources, supply- chain management, scheduling, and maintenance. Each strategy as
we mention above will be more detail in other specific part in this report.
In this part of the case we mention about quality in WTPS. we just focus on International Quality
Standard and Environment Standard . WTPS applied ISO 9001, and ISO 14001
Now how we can understand what ISO 9001 is and how WTPS can apply it
What is ISO 9001?
ISO 9001:2000 specifies requirements for a quality management system where an
organization
1. needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements, and
2. aims to enhance customer satisfaction through the effective application of the system,
including processes for continual improvement of the system and the assurance of conformity
to customer and applicable regulatory requirements
In WTPS how they can apply ISO 9001
WTPS a established and maintained a quality manual that includes the control of document
and control of record.
Management responsibility includes management commitment, quality policy, quality objectives, quality management
system planning, management representative, internal communication. For example, in management commitment, the
top management of WTPS provide evidence of its commitment to the development and implementation of the quality
management system, or in internal communication, the top management of this power station ensured that that
appropriate communication processes are established within the organization and that communication takes place
regarding the effectiveness of the quality management system.
For example, in purchasing part, the power stations ensured that purchased product conforms to specified
purchase requirements.. Measurement, analysis and improvement include monitoring and measurement
Control of nonconforming product, analysis of data and improvement. For example, in analysis of data
part, power station determined, collected and analyzed appropriate data to demonstrate the suitability and
effectiveness of the quality management system and to evaluate where continual improvement of the
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
15. effectiveness of the quality management system can be made. Here all contents to answer the question
how Wanakbori Thermal Power Station can apply ISO 90001.
What is ISO 14001?
The ISO 14000 family addresses various aspects of environmental management. The very first
two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management
systems (EMS). ISO 14001:2004 provides the requirements for an EMS and ISO 14004:2004
gives general EMS guidelines.
The other standards and guidelines in the family address specific environmental aspects,
including: labeling, performance evaluation, life cycle analysis, communication and auditing.
An EMS meeting the requirements of ISO 14001:2004 is a management tool enabling an
organization of any size or type to:
- identify and control the environmental impact of its activities, products or services, and to
- improve its environmental performance continually, and to
Implement a systematic approach to setting environmental objectives and targets, to achieving these and
to demonstrating that they have been achieved.
In WTPS how they can apply ISO 14001
- last few years , they have pursued measures to reduce the amount of water utilised by the stations,
including:
o Expediting the identification and repair of leaking valves
o Stopping continuous blow down on the heat-recovery boilers
These measures have led to greater efficiency, almost halving the amount of water being consumed at the
power stations
- Being a coal based thermal power station the ash generation is approximately 5000 tones/day
and to achieve effective pollution control each unit is equipped with highly efficient electro-
static precipitator which collects most of the ash from the flue gases liberated through chimney.
the collected ash is being disposed of in ash pond spread in 170 hectors through ash plant. To
have batter pollution control he huge tree plantations.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
16. but there another way to us to understand easily by and answer some question when we look at their
operation as follow:
Effective operation
The rule set to make power station better
Following the fixed rules in this power station
What is their innovation? At the end, the executive engineer of WTPS Said that their innovation is
ISO18001 in the near future.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
17. General Process Strategy
The coal base thermal power plant is a bulk energy converter from fuel (coal) to electricity using water as
the working medium.
Energy released by the burning of coal is transferred to water in the boiler to generate steam a high
pressure and temperature, which then expanded the turbine to a low pressure to produced shaft work. The
rotor of turbine attach with rotor of generator and ,with generate the electricity . The steam living the
turbine is condensed in to water in the condenser where cooling water from a river circulates carrying
away the heat released during condensed.
The water (condensate) is then feedback to the boiler by the pump and the cycle goes on repeating its
self.
LOCATION
a) Position
Image 2.1
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
18. This power station is located on the bank of river Mahi, about 10 K.M. Downstream of wanakbori weir
and about 10 K.M. from Sevalia , Ta. Thasara, Dis. Kheda. It is 110 k.M. 85 K.M. and 35 K.M. from
Ahmedabad, Baroda and Godhara respectively.
b) Factors That Affecting Location Decision of WTPS
Resources:
I
- The river mahi is situated near to wanakbori. So the water is easily available from this mahi
river for the thermal power station.
- Land of wanakbori is barren. So it is not used for agriculture . so thermal power station is
established here.
Labour :
- Labours are easily available from near by villages of Wanakbori . villages like Sonipur ,
Kuni, Sevalia ,and Balasinor are situated near to Wanakbori . so labours from this villages
are easily available for Wanakbori thermal power station.
Transportation:
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
19. - Transportation facilities can easily developed at WTPS . The railway line from WTPS can
easily connected to Godhara railway line, so coal can easily brought from Bihar, Madhya
Pradesh, and Orissa through railway.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
20. Layout strategy
Thermal Power Plant Lay out :
The above diagram is the lay out of a simplified thermal power plant and the below is also diagram of a
thermal power plant.
The above diagram shows the simplest arrangement of Coal fired (Thermal) power plant.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
21. Main parts of the plant are
1. Coal conveyor 2. Stoker 3. Pulverizer 4. Boiler 5. Coal ash 6. Air preheater 7. Electrostatic precipitator
8. Smoke stack 9. Turbine 10. Condenser 11. Transformers 12. Cooling towers
13. Generator 14. High - votge power lines
Basic Operation :A thermal power plant basically works on Rankine cycle.
Coal conveyor : This is a belt type of arrangement.With this coal is transported from coal storage place
in power plant to the place near by boiler.
Stoker : The coal which is brought near by boiler has to put in boiler furnance for combustion.This
stoker is a mechanical device for feeding coal to a furnace.
Pulverizer : The coal is put in the boiler after pulverization.For this pulverizer is used.A pulverizer is a
device for grinding coal for combustion in a furnace in a power plant.
Types of Pulverizers
Ball and Tube Mill
Ball mill is a pulverizer that consists of a horizontal rotating cylinder, up to three diameters in length,
containing a charge of tumbling or cascading steel balls, pebbles, or rods.
Tube mill is a revolving cylinder of up to five diameters in length used for fine pulverization of ore, rock,
and other such materials; the material, mixed with water, is fed into the chamber from one end, and
passes out the other end as slime.
Ring and Ball
This type consists of two rings separated by a series of large balls. The lower ring rotates, while the upper
ring presses down on the balls via a set of spring and adjuster assemblies. Coal is introduced into the
center or side of the pulverizer (depending on the design) and is ground as the lower ring rotates causing
the balls to orbit between the upper and lower rings. The coal is carried out of the mill by the flow of air
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
22. moving through it. The size of the coal particals released from the grinding section of the mill is
determined by a classifer separator. These mills are typically produced by B&W (Babcock and Wilcox).
Boiler : Now that pulverized coal is put in boiler furnance.Boiler is an enclosed vessel in which water is
heated and circulated until the water is turned in to steam at the required pressure.
Coal is burned inside the combustion chamber of boiler.The products of combustion are nothing but
gases.These gases which are at high temperature vaporize the water inside the boiler to steam.Some times
this steam is further heated in a superheater as higher the steam pressure and temperature the greater
efficiency the engine will have in converting the heat in steam in to mechanical work. This steam at high
pressure and tempeture is used directly as a heating medium, or as the working fluid in a prime mover to
convert thermal energy to mechanical work, which in turn may be converted to electrical energy.
Although other fluids are sometimes used for these purposes, water is by far the most common because
of its economy and suitable thermodynamic characteristics.
Condenser : Steam after rotating staem turbine comes to condenser.Condenser refers here to the shell
and tube heat exchanger (or surface condenser) installed at the outlet of every steam turbine in Thermal
power stations of utility companies generally. These condensers are heat exchangers which convert steam
from its gaseous to its liquid state, also known as phase transition. In so doing, the latent heat of steam is
given out inside the condenser. Where water is in short supply an air cooled condenser is often used. An
air cooled condenser is however significantly more expensive and cannot achieve as low a steam turbine
backpressure (and therefore less efficient) as a surface condenser.
The purpose is to condense the outlet (or exhaust) steam from steam turbine to obtain maximum
efficiency and also to get the condensed steam in the form of pure water, otherwise known as condensate,
back to steam generator or (boiler) as boiler feed water.
Why it is required ?
The steam turbine itself is a device to convert the heat in steam to mechanical power. The difference
between the heat of steam per unit weight at the inlet to turbine and the heat of steam per unit weight at
the outlet to turbine represents the heat given out (or heat drop) in the steam turbine which is converted to
mechanical power. The heat drop per unit weight of steam is also measured by the word enthalpy drop.
Therefore the more the conversion of heat per pound (or kilogram) of steam to mechanical power in the
turbine, the better is its performance or otherwise known as efficiency. By condensing the exhaust steam
of turbine, the exhaust pressure is brought down below atmospheric pressure from above atmospheric
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
23. pressure, increasing the steam pressure drop between inlet and exhaust of steam turbine. This further
reduction in exhaust pressure gives out more heat per unit weight of steam input to the steam turbine, for
conversion to mechanical power. Most of the heat liberated due to condensing, i.e., latent heat of steam,
is carried away by the cooling medium. (water inside tubes in a surface condenser, or droplets in a spray
condenser (Heller system) or air around tubes in an air-cooled condenser).
Condensers are classified as (i) Jet condensers or contact condensers (ii) Surface condensers.
In jet condensers the steam to be condensed mixes with the cooling water and the temperature of the
condensate and the cooling water is same when leaving the condenser; and the condensate can't be
recovered for use as feed water to the boiler; heat transfer is by direct conduction.
In surface condensers there is no direct contact between the steam to be condensed and the circulating
cooling water. There is a wall interposed between them through heat must be convectively
transferred.The temperature of the condensate may be higher than the temperature of the cooling water at
outlet and the condnsate is recovered as feed water to the boiler.Both the cooling water and the
condensate are separetely with drawn.Because of this advantage surface condensers are used in thermal
power plants.Final output of condenser is water at low temperature is passed to high pressure feed water
heater,it is heated and again passed as feed water to the boiler.Since we are passing water at high
temperature as feed water the temperature inside the boiler does not dcrease and boiler efficincy also
maintained.
Cooling Towers :The condensate (water) formed in the condeser after condensation is initially at high
temperature.This hot water is passed to cooling towers.It is a tower- or building-like device in which
atmospheric air (the heat receiver) circulates in direct or indirect contact with warmer water (the heat
source) and the water is thereby cooled (see illustration). A cooling tower may serve as the heat sink in a
conventional thermodynamic process, such as refrigeration or steam power generation, and when it is
convenient or desirable to make final heat rejection to atmospheric air. Water, acting as the heat-transfer
fluid, gives up heat to atmospheric air, and thus cooled, is recirculated through the system, affording
economical operation of the process.
Two basic types of cooling towers are commonly used. One transfers the heat from warmer water to
cooler air mainly by an evaporation heat-transfer process and is known as the evaporative or wet cooling
tower.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
24. Evaporative cooling towers are classified according to the means employed for producing air circulation
through them: atmospheric, natural draft, and mechanical draft. The other transfers the heat from warmer
water to cooler air by a sensible heat-transfer process and is known as the nonevaporative or dry cooling
tower.
Nonevaporative cooling towers are classified as air-cooled condensers and as air-cooled heat exchangers,
and are further classified by the means used for producing air circulation through them. These two basic
types are sometimes combined, with the two cooling processes generally used in parallel or separately,
and are then known as wet-dry cooling towers.
Evaluation of cooling tower performance is based on cooling of a specified quantity of water through a
given range and to a specified temperature approach to the wet-bulb or dry-bulb temperature for which
the tower is designed. Because exact design conditions are rarely experienced in operation, estimated
performance curves are frequently prepared for a specific installation, and provide a means for comparing
the measured performance with design conditions.
Economiser : Flue gases coming out of the boiler carry lot of heat.Function of economiser is to recover
some of the heat from the heat carried away in the flue gases up the chimney and utilize for heating the
feed water to the boiler.It is placed in the passage of flue gases in between the exit from the boiler and the
entry to the chimney.The use of economiser results in saving in coal consumption , increase in steaming
rate and high boiler efficiency but needs extra investment and increase in maintenance costs and floor
area required for the plant.This is used in all modern plants.In this a large number of small diameter thin
walled tubes are placed between two headers.Feed water enters the tube through one header and leaves
through the other.The flue gases flow out side the tubes usually in counter flow.
Air preheater : The remaining heat of flue gases is utilised by air preheater.It is a device used in steam
boilers to transfer heat from the flue gases to the combustion air before the air enters the furnace. Also
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
25. known as air heater; air-heating system. It is not shown in the lay out.But it is kept at a place near by
where the air enters in to the boiler.
The purpose of the air preheater is to recover the heat from the flue gas from the boiler to improve boiler
efficiency by burning warm air which increases combustion efficiency, and reducing useful heat lost
from the flue. As a consequence, the gases are also sent to the chimney or stack at a lower temperature,
allowing simplified design of the ducting and stack. It also allows control over the temperature of gases
leaving the stack (to meet emissions regulations, for example).After extracting heat flue gases are passed
to elctrostatic precipitator.
Electrostatic precipitator : It is a device which removes dust or other finely divided particles from flue
gases by charging the particles inductively with an electric field, then attracting them to highly charged
collector plates. Also known as precipitator. The process depends on two steps. In the first step the
suspension passes through an electric discharge (corona discharge) area where ionization of the gas
occurs. The ions produced collide with the suspended particles and confer on them an electric charge.
The charged particles drift toward an electrode of opposite sign and are deposited on the electrode where
their electric charge is neutralized. The phenomenon would be more correctly designated as
electrodeposition from the gas phase.
The use of electrostatic precipitators has become common in numerous industrial applications. Among
the advantages of the electrostatic precipitator are its ability to handle large volumes of gas, at elevated
temperatures if necessary, with a reasonably small pressure drop, and the removal of particles in the
micrometer range. Some of the usual applications are: (1) removal of dirt from flue gases in steam plants;
(2) cleaning of air to remove fungi and bacteria in establishments producing antibiotics and other drugs,
and in operating rooms; (3) cleaning of air in ventilation and air conditioning systems; (4) removal of oil
mists in machine shops and acid mists in chemical process plants; (5) cleaning of blast furnace gases; (6)
recovery of valuable materials such as oxides of copper, lead, and tin; and (7) separation of rutile from
zirconium sand.
Smoke stack :A chimney is a system for venting hot flue gases or smoke from a boiler, stove, furnace or
fireplace to the outside atmosphere. They are typically almost vertical to ensure that the hot gases flow
smoothly, drawing air into the combustion through the chimney effect (also known as the stack effect).
The space inside a chimney is called a flue. Chimneys may be found in buildings, steam locomotives and
ships. In the US, the term smokestack (colloquially, stack) is also used when referring to locomotive
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
26. chimneys. The term funnel is generally used for ship chimneys and sometimes used to refer to
locomotive chimneys.Chimneys are tall to increase their draw of air for combustion and to disperse
pollutants in the flue gases over a greater area so as to reduce the pollutant concentrations in compliance
with regulatory or other limits.
Generator : An alternator is an electromechanical device that converts mechanical energy to alternating
current electrical energy. Most alternators use a rotating magnetic field. Different geometries - such as a
linear alternator for use with stirling engines - are also occasionally used. In principle, any AC generator
can be called an alternator, but usually the word refers to small rotating machines driven by automotive
and other internal combustion engines.
Transformers :It is a device that transfers electric energy from one alternating-current circuit to one or
more other circuits, either increasing (stepping up) or reducing (stepping down) the voltage. Uses for
transformers include reducing the line voltage to operate low-voltage devices (doorbells or toy electric
trains) and raising the voltage from electric generators so that electric power can be transmitted over long
distances. Transformers act through electromagnetic induction; current in the primary coil induces
current in the secondary coil. The secondary voltage is calculated by multiplying the primary voltage by
the ratio of the number of turns in the secondary coil to that in the primary
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
27. 3.2. Purchase Management at WTPS
Main purchase goods of power stations are fuels, bearings, lubricating oil, Welding rod and various
spares. The important spares of original equipment are being purchased from OEM.
This power station take action to purchase fuels like Coal from Coal India Authority, LSHS (Low
Sulphur High Stock) and L.D.O.(Light Diesel Oil) from Indian Oil Corporation.
Decisions regarding items to be purchased are taken by the Maintenance Department at WTPS.
The Technical section acquires information about annual consumption, and sub store stock level.
Technical section also considers other department in purchase procedure.
After this procedure Technical department issues tender notice through website regarding the
requirement of materials. In case of urgency of required material procedure is followed laid for
emergency procurement they invite five tenders and eligible cheapest tender generally accepted to
place the order for procurement technical department decide to reorder of goods or material as par
seeing market trends.
3.3 Store Management at WTPS
Receiving and inspection
- Store department receive the material from the supplier/manufacturer after order placed
- Thereafter store department check the material received in the presence of indenting engineer
whether it is as per requirements or not
- In case of coal, the samples are taken by WTPS chemical laboratory staff and thereafter
testing is carried out by WTPS chemical laboratory as well as appointed authorised testing
laboratory as third party
Material arrangement
- Store department arrange to keep the material at proper place for its safe storage and
easily accessibility
- Store department use the large number of racks to place small size spares category wise
- Large size equipments are placed in bunkers/large storage place(covered place) nearby
store department at WTPS
- In case of Coal, storage is done in wide open place nearby coal yard at WTPS
Codification
- Store department arrange to carry out codification in ten digits for various spares as per
the norms laid down for codification
Safety measures for material
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
28. - To preserve the spares in good condition, adequate measures to prevent rusting and
dusting are being taken by store department by providing covers, applying anticorrosive
oils etc.
- Water spray is being done on huge coal piles to prevent fire
Issuing and crediting the material
- Store department issue the material to the concerned department as per the requirement
- Store department also receive the material credited by the various departments
Maintaining records
- Computer facility is being used to maintain the various records like stock, receipt,
consumption, specification of material etc with the help of “e- URJA” software
developed by Tata Consultancy Services (TCS).
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
29. 3.4 Inventory control system and valuation
Inventory management plays a strategic role in the supply chain management of power stations and
accomplishment of the business objectives, including cost efficiency and working capital optimization.
The inventory management professional should have a comprehensive understanding of the inventory
systems and processes, that will enable successful balancing of availability of material with demand, and
tracking of spares throughout the supply chain.
Inventory Management involves the following steps at WTPS:
-ABC Analysis
Where, A means cost of goods is more than 1, 00,000.
B means cost of goods is more than 10, 000 and less than 1, 00,000.
C means cost of goods is less than 10, 000 .
-XYZ Analysis
Where, X indicates that importance goods.
Y indicates that goods having less important.
Z indicates that not essential goods.
-FSN Analysis
Where, F stands for fast consumption goods.
S stands for small consumption goods.
N stands for none consumption goods.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
30. CHAPTER 4
FINANCE AND ACCOUNTS
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
31. 4.2 Depreciation analysis for FY 2009-10
GSECL has claimed Rs. 516.00 crore towards depreciation charges in the Truing up for FY 2009-10. The
depreciation approved for FY 2009-10 by the Commission in MYT order dated 17th January, 2009, in
the Tariff Order for FY 2009-10, in the APR for FY 2009-10 and now claimed by GSECL are as given in
the Table below
SOURCE: www.gercin.org/
GSECL has proposed Rs. 48 crore towards loss attributing to uncontrollable factors
because of difference in the actual capitalization during FY 2009-10.
SOURCE: www.gercin.org/
4.3 Interest and Finance charges for FY 2009-10
The GSECL has claimed Rs. 338 crore towards interest and finance charges in the
Truing up for FY 2009-10. The interest and finance charges approved for FY 2009-10
by the Commission in the MYT order, in Tariff Order for FY 2009-10, in APR for FY
2009-10 and now claimed by GSECL as actual are tabulated in Table below
SOURCE: www.gercin.org/
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
32. GSECL has claimed Rs.11 crore towards loss attributing to uncontrollable factoowning to the difference
in the actual capitalization.
SOURCE: www.gercin.org/
4.4 Return on Equity for FY 2009-10
GSECL has claimed Rs. 328 crore towards return on RoE in the Truing up for FY
2009-10. The return on RoE approved for FY 2009-10 by the Commission in the MYT
order dated 17th January, 2009, in the Tariff Order for FY 2009-10, in APR for FY
2009-10 and now claimed by GSECL as actual are given in Table below
SOURCE: www.gercin.org/
GSECL has submitted that the comparison of actual value for return on equity
computed on the basis of opening equity for FY 2009-10 and addition to equity during
the year on account of funding of capital expenditure against the return on equity
approved in the APR for FY 2009-10 in the Tariff Order dated 31st March 2010
resulted in a gain of Rs.1 crore. This variation of Rs. 1 crore has been attributed to
uncontrollable factors. The station-wise Return on equity claimed by GSECL in the
truing for FY 2009-10 and the controllable gains/losses are given in the Table below
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
34. SOURCE: www.gercin.org/
4.5 COSTING METHOD
Generation Costs - Variable (Energy) and Capacity (Fixed) Charges
Variable Costs (Energy Charge)
The performance parameters for different stations are discussed and approved forthe control period from
FY 2011-12 to FY 2015-16 in Chapter 6. The variable costs(mostly fuel cost) depend on the cost
parameters such as GCV of different fuelsused, mix of fuel and price of fuel. GSECL generating stations
run on coal, lignite and
gas as base fuel. For some of the coal stations, a mix of indigenous, washed andimported coal is used.In
the case of hydro stations no fuel costs are involved. However, the energy chargeand fixed charge for
hydro stations shall be recovered in accordance with the Regulation 60 of the MYT Regulations 2011.It
is basically decided to adopt the cost parameters (except mix of coal) as actually obtained during FY
2009-10 for the control period FY 2011-12 to FY 2015-16 with the provision to pass on any difference in
fuel cost to the consumers due to variation in cost parameters during the MYT period as per the FPPPA
formula.GSECL projections and Commission‟s analysis on the mix of coal, Wt. Av. GCV of fuels to be
consumed and Wt. Av. price of fuel for different stations are discussed below:
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
35. Mix of Coal
GSECL projected the percentage mix of coal for different stations for the control
period as given in Table below:
SOURCE: www.gercin.org/
GSECL submitted that as stated earlier the mix and Wt. Av. GCV of coal is projected
based on the annual contracted quantities as per the fuel linkages for indigenous and
washed coal and targeted quantities of imported coal.
Wt. Av. Prices of Fuel
GSECL projected the Wt. Av. prices of coal for different stations for the control period
as given in Table below
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
36. SOURCE: www.gercin.org/
GSECL stated that the prices of coal are projected based on the annual contracted
quantities of indigenous, washed coal and targeted quantities of imported coal and
also with an escalation factor of 5% each year.
SOURCE: www.gercin.org/
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
37. CHAPTER 5
HUMAN RESOURCES
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
38. 5.1 Organization structure of WTPS
SOURCE:DGM(WTPS)
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
39. 5.2 Promotion and Increment polices
As per the general standing order 4 of the class 1 to the class 4 the employees are selected as per the
norm. The basic promotion of the GSO as per the section of 315 for the class 3 and 4 for the power
station
Position of the Pay scale Class Requirements Experience
employee
Fitter Grade II 980-2280 Ass Fitter Grade Should have Should Have minimum 3
Lower Category acquired years of Asst Fitter Grade
certificate of ITI
Technical grade NA Channel Fitter Minimum out si Should have three years
Grade 4 dev grade of experience in as the
certificate post of the Asst manager
in the Steal plant
The above table is as per the seniority as on the effect of the 1-4-2011 for the class 4 to class 1 and class
3 to class 4
5.3 Recruitment and Selection
The recruitment of this industry is done in the following ways mention below
1) Through the promotion of the direct employment.
2) It can be done through the employment newspaper.
3) By give the advertisement in the local news paper for the post and the position and the pay scale.
4)It can be recruited through the online where the advertisement or the current openings are mention on
the basis of that the employee applies through it. The rate of the daily allowance and the revision of the
pay scale is updated every year.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
40. 5.4 Salary structure
Sr Existing GUVNL Pay Revised Payscales Weightage
NO scales
1 2 3 4
1 2750-5215 7300-17940 2100
2 3050-59855 8100-19870 2400
3 3200-6905 8800-20940 2800
4 3400-8300 9700-21710 3300
5 3600-9350 10100-22000 3400
6 4000-10025 11300-22470 3800
7 5000-10525 13600-31300 4300
8 6500-11750 17300-38610 5200
9 8000-13600 21200-42000 6250
10 8500-14250 21900-43350 6000
11 10400-15525 27000-44710 7600
12 1300-18600 41200-70270 8700
13 16000-20050 48590-75900 NA
14 18400-22400 54700-77000 NA
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
41. CHAPTER 6
BUSINESS STRATEGY AND OUTLOOK
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
42. 6.1 SWOT ANALYSIS
This SWOT analysis is on the basis of GUJART STATE ELECTRICITY CORPORATION
SWOT analysis refers to a scan of the internal and external environment of an organization. Such
a scan highlights an organization‟s strengths & weaknesses (internal scan) and the opportunities
& threats (external scan) from the business environment. The SWOT analysis enables anorganization to
develop a strategy that seeks to address its weaknesses and build on its strengths to capitalize on the
opportunities available to it.The SWOT analysis provides an opportunity to understand an organization‟s
capabilities andresources and therefore, provides key input to strategy formulation and selection. The
SWOT can also be utilized for organizational development activities as it brings to fore the areas that
need improvement.
Approach
The SWOT analysis for GSECL has been carried out based on our assessment of the respective
components – that is – Strengths, Weaknesses, Opportunities and Threats. Strengths andweaknesses of
GSECL have been identified based on operational and financial performance of the company and our
assessment of key business processes and human resource aspects.Opportunities and threats have been
identified have been identified after analyzing the business environment, potential competition and the
issues and challenges that face the company in themarket that is evolving rapidly and will continue to do
so in the foreseeable future. The company‟s business environment has been analysed in terms of sector
reform and regulations,EA 2003, Government of Gujarat role in the sector and business relationship with
other important market players
Strengths
1. Clean Balance Sheet – As per the proposed Financial Restructuring Plan, the accumulated losses of
all the sector entities will be set off against reinstatement of assets and therefore, all the sector entities
will start operations will clean balance sheets. The clean balance sheet provides an opportunity to
GSECL to leverage its balance sheet.
2. Financial Management –
a. Interest and Financing Costs - The average interest rate of debt liability allocated
of GSECL is to be around 10.50%. Top management and finance managers of the
GSECL have been able to restructure high cost debts of about Rs 1200 crores leading
to a saving of Rs 80 crores.
b. Fuel Costs are the biggest cost component for GSECL contribution about 78% of the
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
43. total costs. GSECL has been making persistent efforts to reduce the fuel costs (per Kcal)
and has achieved significant reductions in cost.
c. The fuel cost reduction measures include washed coal utilization, imported coal usage,
persistent negotiations with suppliers. Such steps and the results therein indicate a strong understanding
of the markets and excellent negotiations.
3. Operations Know-how – GSECL boasts a strong operational know how in form of experienced
engineers at power stations. GSECL rotated its engineers between power stations and also to corporate
offices, imparting greater technical knowhow and widening the skill base of the concerned.
4. Entrepreneurial Orientation – GSECL management has taken significant strides in new areas like
captive mining, usage of washed coal, negotiating with suppliers, bringing in better practices, fly ash
utilization and have also been able to achieve yearon- year operational targets to an admirable extent.
Such entrepreneurial top management shall be a key strength for GSECL in the future as well.
Weaknesses of GSECL
1. Accounting and Record Management – Departmental record keeping systems of GSECL have
developed into stand-alone systems as inter departmental data validation has not been maintained.
Therefore, the information available with various departments, especially with regard to numeric data,
does not match and the differences are seldom reconciled. In order to be able to take quick & firm
decisions and to monitor the progress, management as well as the executives of the company require
accurate information. Therefore, this is an area where significant improvements required.
2. Legacy Systems – The IT systems implemented at GSECL are again stand alone and of considerable
vintage. The same needs to be updated with the latest systems for integrated information management.
3. Lack of Commercial Focus in Business Units – Though the technical knowhow amongst power
stations staff is commendable, the focus of operations has been limited to technical performance of the
stations. The same is a result of lack of commercial focus in state electricity boards. Now, with
competitive forces gaining ground and introduction of financial mechanism to incentivize grid discipline
(ABT Regime), the operating as well as managing staff at power stations needs to be aware and
responsive to commercial.
4. Operations and Maintenance Performance – Inspite of significant know how, the operatinperformance
of the power stations has not been up to the mark. A large part of the reason for sub-optimal performance
is the vintage of the plants. Other than that lack of sufficient spare capacity and paucity of funds resulted
in poor operation and maintenance practices, which have now become a vicious circle.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
44. Opportunities
1. Sale of power outside Gujarat – The Electricity Act, 2003 provides for open access to transmission
network and identifies trading as a separate activity. This provides significant opportunity for GSECL to
sell power outside the state to otherutilities or even to high value consumers. For the same, the company
might look at tying up sale of traded power through the state owned power trader, GUVNL.
2. Joint Ventures present a suitable opportunity to bring in private and public partnership in generation.
Specific advantages of joint ventures include reduction in capital requirements for power sector, greater
efficiency of private management and perceived payment security to private investors. Joint ventures can
also be explored with other state utilities especially the ones which have fuel reserves.
3. Captive Mining – Fuel quality, cost and reliability are major issues facing the power sector, especially
generating companies that are largely dependent on coal. Under the Coal Mines (Nationalisation) Act,
1973 coal mining is exclusively reserved for the public sector. By an amendment to the Act in 1976, two
exceptions to this policy were introduced viz. (i) captive mining by private companies engaged in
production of iron and steel and (ii) sub-lease for coal mining to private parties in isolated small pockets
not amenable to economic development and not requiring rail transport, were allowed. The Act was
further amended w.e.f. 9.6.1993 to allow private sector participation in coal mining for generation of
power, for washing of coal obtained from a mine or for other end uses to be notified by Government from
time to time. This presents an opportunity for GSECL to bid for suitable mining blocks as the same
improve the energy security position of the state and likely costs too.
4. Fly Ash Utilisation – A useful bye-product, ash in the form of fly ash, bottom or pond ash is available
at the Coal and Lignite based thermal Power Plants. Ash in its natural form may not be free from likely
environmental hazards. The protection from environmental hazards that can be anticipated necessitate ash
utilization in a variety of ways. It needs to be utilized in various ways and applications. Further,
Indigenous coal has high ash content, sometimes as high as 40%. Therefore, ash handling is a
major area of concern for most coal based power stations. Till recently, fly ash was utilised for landfills,
raising ground levels and land reclamation as well as for cement production. However, none of these
activities were in economic interest of the generating companies. Going forward, GSECL needs to look at
recovering handling and administration costs for fly ash disposal.
5. Integrated Information Management – The erstwhile GEB has initiated the process of implementing an
end-to-end IT solution for the sector. The solution will now, post unbundling, be implemented across all
companies on a common platform. The implementation presents an opportunity to change the way
GSECL does business as it holds the key to its effectiveness and the efficiency improvements it brings
about and therefore, should be taken seriously. A key component of the implementation process is the set
of teams formed to assist TCS, the implementation agency, in
studying the existing system and arriving at the re-engineered business processes.
Threats
1. Captive Power Generation – Generation de-licensing and open access totransmission that is allowed by
EA 2003 would provide the opportunity for largeconsumers to build their own plants to meet their
consumption needs and sell excesspower in the market. The national tariff policy further accentuates the
threat bysuggesting captive power plants as a source of power for state utilities. This is a realthreat to
GSECL as captive generation is economically feasible and providessignificant financial benefit compared
to the industrial tariffs in the state. The new provision for group captive generation has heightened the
threat substantially.GSECL will mainly be affected due to lower PLF and therefore, lower efficiency of
the
power plants.
2. Cheaper Sources of Power – With significant capacity addition across thecountry, GSECL plants are
likely to fall further below in the merit order and therefore,face serious competition. Considering the
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
45. distances from coal sources, limited hydropotential and increasing process of gas, GSECL needs to take
steps to reduce fuelcosts and improve operational efficiency in order to be able to face competition.
Traded power sought as an opportunity in previous section, doubles up as a threat toGSECL.
3. Regulatory Provisions – As the regulatory provisions get stricter by the year,GSECL needs to ensure
that such targets are met, thereby avoiding financial lossesdue to under performance.
4. Fuel Supply –
a. Coal - With the opening up of generation function to private sector and capacityaddition by state and
central sector, Coal India Limited and Neyveli LigniteCorporation Limited, the major producers of coal
and lignite in the public sector, areexperiencing resource constraints. The coal reserves of the country are
enough to lastfor another 230 years. However, the production is abysmally low and simply not
enough to meet the growing demand. The much-needed reforms initiated in thecoal sector have hardly
found takers within the industry. It is unlikely that the stateowned companies will either give up their
monopoly or bring in the requiredinvestments or efficiencies into the sector.
b. Gas has emerged as a new frontier for energy supply in the country. The demand forgrowth is likely to
grow rapidly for next decade at the least. Current supply positions,however, are extremely limited.
Availability of gas, however, has also been tackledthrough imports of RLNG at Dahej and proposed
imports from other LNG terminals
under development. Development of transportation infrastructure and pricingmechanism appear to be
critical issues other than availability.
c. The above developments are likely to have an impact on fuel prices as well asquality. Therefore, fuel
prices, quality and assurance appear to significant forces ofthreat for GSECL.
5. Environment Regulations – Changes in environmental regulations could createfinancial burdens to
GSECLL that may render its plants, especially coal-fired plants,less competitive due to higher operating
costs to control emissions, the costs ofrehabilitation.
6.2 FUTURE EXPANSION
Power is an index of the State Government development. If the state is self sufficient in power
generation, its industrial development, agriculture and other sector will flourish. Government of
Gujarat has rolled out ambitious power plants in the state and GSECL is going to install new Power
Plant in the State.
GSECL has also achieved the financial closure for an amount of Rs. 1775 Crores for its 500 MW coal
based power station from M/S Power Finance Corporation Limited New Delhi and EPC contract of
the project has been awarded to M/S BHEL. This new capacity is expected to be commissioned in
the FY 2012-13.
Investment Plan
Investment Plan forms a critical part of business plan for a corporate entity and even more so for a
generating company considering the size of projects. Investments in a generating company are
largely in three areas –
1. Investments in New Capacity Addition
2. Major Renovation and Modernization Projects
3. Minor R & M.
Need for Investments
The need of investments by a generating company arise mainly due to the following reasons–
1. New Capacity Addition
a. Rising Demand - The state of Gujarat has huge latent demand that is likely to be catered
by the distribution companies in the near future.
b. Replacement of old plants – Most of the plants owned by GSECL are of considerable
vintage. GSECL needs to look at options to replace the same with modern plants to
improve efficiency and reliability.
2. Efficiency Improvement for Ageing Plants (Renovation & Modernization) – In the context of
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
46. limited financial resources and in order to bridge the gap between demand and supply,
optimum utilization of existing installed capacity in the country to maximize the generation
through Renovation & Modernization (R&M) of existing power plants is considered to be the
most cost effective option. R&M of these plants will require significant investments that need
to be factored into the investment plan of the company.
Elements of Investment Plan
GSECL projects department has prepared a perspective plan for capacity addition as well as
renovation and modernization of existing stations. This section discusses the investment plan and
thereby, determines the quantum of such investments along with the probable sources of finance
Conclusion
WTPS is biggest coal based thermal power station comprising of seven units, each having 210 MW
power generating capacity. This power station is ISO 9001 and 14001 certified. Well established
computer management system is working effectively in this power station. Functioning of Store,
inventory, purchase, account, HR etc. are discussed at site and found that its management follows
systematic procedure which helps the power station in performing up to the mark.
G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT
47. BIBILOGRAPHY
Er. Nath Rakesh;Paper „Power sector reforms-sharing of resources is the key to economical growth and
sucess‟;Octobar 2003
Nag P.K. „Power plant engineering „; 2005
Power ministry of India; „Annual report 2010-11‟
Websites:
www.gsecl.in/
www.powermin.nic.in
planningcommission.nic.in/
www.coal.nic.in/
www.ntpcindia.com/
www.cercind.gov.in/
www.cea.nic.in
www.indiainfrastructure.com/
www.indiacore.com
www.gercin.org/
www.indiaenergyportal.org/overview_detail.php
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48. ANNAXURES
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