Description
This is a documentation is about company analysis of NTPC.
NTPC – Company Analysis
Trend In Power Generation
Power generation is one the most sought field as country?s growth depends upon it and finally consumption of power produced is correlated to country?s GDP. India one the fastest growing economies also requires power in the form of energy, almost 47% of energy produced is utilised in industries. The Market Potential to sustain the GDP Growth rate of India @ 8% plus per annum needs the power sector to grow at 1.8 - 2 times the GDP rate of growth as espoused by economists, planners and industry experts. This would mean a YOY capacity addition of 18,000 - 20,000 MW to achieve this ambitious plan of moving India to a Developed Economy status, as an Economic Global Powerhouse. The total installed capacity for electricity generation in the country has increased from 16,271 MW as on 31.03.1971 to 206,526 MW as on 31.03.2011, registering a compound annual growth rate (CAGR) of 6.4%. The highest rate of annual growth (11.3%) from 2009-10 to 2010-11 in installed capacity was for Thermal power followed by Nuclear Power (4.8%). While industry will continue to grow and substitute for agriculture, industrial growth has gradually decoupled from energy growth. Five Major industries (Iron and Steel, Cement, Ammonia, Aluminum and Pulp and Paper) account for 63 percent of total final energy use in industry. While absolute energy use in these industries grew at 4.1 percent per annum. Most notable is the iron and steel sector, which while accounting for over 30 percent of final energy use within country. India?s cement industry – the second largest in the world after China – is also relatively efficient. The industries average electricity intensity of 88 kWh/ton is the lowest in the world, compared to 119 in China and 140 in the US.
High Energy Prices India has one of the highest industrial electricity rates in the world, exceeding those in the US in most developing countries and in the Organization for Economic Co-operation and Development (OECD), both in absolute terms and much more so on a PPP basis.
Recent- The MOP launched the Standards and Labelling program and the Energy Conservation Building Code (ECBC) in 2006 and 2007 respectively. Under these regulations, the BEE has launched several successful programs, and in the process made noteworthy progress, some of these achievements include: o The manufacturers of four key electrical products (refrigerators, air conditioners, distribution transformers and fluorescent tube lights) have adopted labelling for their Page 1
models. The BEE (Bureau of Energy Efficiency) will make labelling mandatory from January 2010. o 715 large companies are classified as „Designated Consumers? and are required to appoint energy managers. The BEE will soon set efficiency improvement targets for each of these units. o BEE will also provide consumers with an estimate on each star label qualified TV?s annual energy consumption through display of a Kwh/year number. Source- www.mospi.gov.in
PEST Analysis
Political policies Analysis: The allocation on power development during the first four Five Year Plans (FYP) was very low i.e. 10-15% of the total outlay. The low allocation of budget in power sector hampered the rural & urban electrification, and power generation capacity. With rapid industrialization and extensive demand for power both in rural and urban areas, the country has been reeling under severe power shortage and the country?s production effort has been severely curtailed by load shedding almost in all parts of country. Agricultural consumers receive virtually free power (with flat-rate pricing averaging under 0.50 Rs/kWh) and even domestic consumers receive modest subsidies. Together, these are about half the consumption. The remaining paying customers (primarily commercial and industrial) cross-subsidize these sectors through very high tariffs. The Indian government has set large scale goals in the 11th plan for power sector due to which the power sector is poised for significant expansion. Economic Analysis: Industrial output growth in India has closely tracked the movements in the composite index of infrastructure industries during 1980s and 1990s. To accelerate the growth of the economy, government allocated the 28% of the budget in seventh FYP and 23.3% of the budget to the power sector in ninth FYP. But this has come too late and power shortage has become a serious constraint to economic development of India. The decline of infrastructural growth between 1980s and 1990s was mainly from the decline in growth of electricity, coal and petroleum. The share of Central government in this is 37%, i.e. roughly half of corresponding State government subsidies. The recovery-rate for the Centre, in the case of power subsidies, is 36.8%, which is somewhat higher than the corresponding figure of 15% for the States. In order to provide availability of over 1000 units of per capita electricity by year 2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be required. Sociological Analysis: Page 2
The new hydropower plant adversely affected the human being and the other animals. The core problem in displacement is people?s loss of livelihood and their potential impoverishment. The forcibly displacement of communities, create hamper the production system. For increasing the generation capacity over the next 8-10 years, the corresponding investments in the transmission sector is also expected to expand.
Technological Analysis: Green house gas effect are caused by emission of petroleum products. Power is generated at the cost of environment that is not feasible. Emission of SO2, NO2, and Black carbon from power plant is harmful for the people living in surrounding area. The above pollutant of the thermal power plants causes dense / intense fog, haze and smog that cause the respiratory disorder. Huge amounts of ash rich in toxic trace elements and radioactive elements or radio nuclides, are disposed off in large ponds and on open grounds surrounding the power plant, thus contaminating the topsoil and the subsurface aquifer.
Various competitors (comparison of sales & profit in crores)
Name
Market Cap.
(Rs. cr.)
Sales Turnover
Net Profit
Total Assets
NTPC Power Grid Corp Reliance Power Tata Power NHPC Neyveli Lignite Reliance Infra Adani Power Jaiprakash Pow JSW Energy
128,629.24 51,667.73 29,117.21 23,635.80 22,694.87 14,092.76 13,905.60 10,006.36 8,911.05 8,757.89
62,053.58 10,035.33 66.12 8,495.84 5,654.69 4,866.85 17,906.67 3,948.90 1,615.56 5,016.42
9,223.73 3,254.95 310.86 1,169.73 2,771.77 1,411.33 2,000.26 -293.92 402.95 234.64
111,572.36 62,092.11 17,450.60 18,229.27 39,153.15 15,178.57 21,636.80 23,668.77 17,551.83 11,119.71
Page 3
SWOT Analysis StrengthThe Indian electricity market today offers one of the highest growth potential for private players. Government reforms, e.g. distribution network Reforms Program, would be the key factor driving the power sector. The Electricity Act and National Electricity Policy will give impetus to the Indian power sector. WeaknessThere is a huge demand for power in some Indian states due to rapid urbanization and industrialization. private players are increasing with high energy shortage and government support in the form of incentives to set up power plants. However, demand is much higher than supply with deficit is projected to be more than 12% during 2010-11. Power theft is an increasing menace; the culprits use the latest in technology: remote sensing devices, high power electromagnet with capacity to effect recordings of meters.
OpportunitiesRenewable energy creates huge opportunities for power generators as the commitment to generate clean energy and environmental obligations have become top priority for most of the nations around the world. Use of natural sources like wind energy, solar energy. ThreatsNumber of merchant power plants will increase in the years to come with state governments inviting private players to invest in the power sector.
Page 4
Company name: NTPC (National Thermal Power Corporation)
NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. NTPC has come a long way from the day when construction of its first pithead super thermal power project at Singrauli in Uttar Pradesh commenced. It is emerging as an „Integrated Power Major?, with a significant presence in the entire value chain of power generation business. NTPC ranked 341st in the „2010, Forbes Global 2000? ranking of the World?s biggest companies. With a current generating capacity of 39,174 MW, NTPC plans to become a 128,000 MW company by 2032. The total installed capacity of the company is 39,174 MW (including JVs) with 16 coal based and 7 gas based stations, located across the country. In addition under JVs, 7 stations are coal based & another station uses naptha/LNG as fuel. The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources(RES) including hydro. NTPC has been operating its plants at high efficiency levels. Although the company has 17.75% of the total national capacity, it contributes 27.40% of total power generation due to its focus on high efficiency. VISION “A world class integrated power major, powering India?s growth, with increasing global presence” MISSION “Develop and provide reliable power, related products and services atcompetitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society” ? Shri. Arup Roy Choudhury, Chairman & Managing Director since September 01, 2010 Page 5
?
Shri. A.K. Singhal, Director (Finance) since August 2005
HeadquarterLocation-
GeneralManager(BusinessDevelopment) NTPLimited, Core-3,5thFloor,ScopeComplex, LodhiInstitutionalArea,NewDelhI-110003 Tel:91-11-24363861,24322546 Fax: 91-11-24 360759
Growth- As per new corporate plan, NTPC envisages to have an installed capacity of 128 GW by the year 2032 with a well diversified fuel mix comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power based capacity. As such, by the year 2032, 28% of NTPC?s installed generating capacity will be based on carbon free energy sources. To give fillip to its large capacity addition programme, a Project Monitoring Centre (PMC) has been set up by NTPC. PMC has the facility of video wall for video conferencing with all web based projects monitoring with respect to schedule.
ShareHolding Pattern- NTPC has total staff strength of nearly 24,000.
Page 6
Financial performance of NTPC during 2011 was (in crores)
Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses
55,216.69 278.01 54,938.68 2,525.48 0 57,464.16 31.33 35,796.37 3,395.27 1,273.14 2,264.01 525.63 -1,052.98 42,232.77
Page 7
SWOT analysis for NTPCStrength Of NTPC ? ? ? ? ? ? ? ? The company has kept with itself sufficient liquid funds to meet any kind of cash requirement. Efficient and timely completion of projects. A minimum risk factor. Best-integrated project management systems. An early starter-more than 30 years experience in power sector. Excellent growth prospects with significant additions, modifications and replacements. Employee-friendly personnel policies. Low project cost of NTPC?s plants.
Weaknesses Of NTPC ? ? ? Depleting raw materials. Some of the Plant have become old and need investment in Renovation & modernization. Less manpower.
Oppurtunities ? Reduce demand and supply gap. ? Upcoming hydro and nuclear sector. ? Huge opportunity in consultancy services. Threats To NTPC ? Rising prices of raw materials ? Huge competition from SEB?s, Reliance Energy, Tata power and other Private development. ? Coming up of other sources of power. ? Huge Capital requirement for expansion, diversification, horizont&vertical integration and R & M. Page 8
Strategies Of Company & Joint Venture
Commensurate with our country?s growth challenges, NTPC has adopted a multi-pronged strategy such as Greenfield Projects, Brownfield Projects, Joint Venture and Acquisition route. Apart from this, NTPC has also adopted the Diversification Strategy in related business areas, such as, Services, Coal Mining, Power Trading, Power Exchange, Manufacturing to ensure robustness and growth of the company. Looking at the opportunities coming its way, due to changes in the business environment, NTPC made changes in its strategy and diversified in the business adjacencies along the energy value chain. In its pursuit of diversification NTPC has developed strategic alliances and joint ventures with leading national and international companies.
?
Hydro Power: In order to give impetus to hydro power growth in the country and to have a balanced portfolio of power generation, NTPC entered hydro power business with the 800 MW Koldam hydro project in Himachal Pradesh. Two more projects have also been taken up in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW. Renewable Energy: In order to broad base its fuel mix NTPC has plan of capacity addition of about 1,000 MW through renewable resources by 2017. Ash Business: NTPC has focused on the utilization of ash generated by its power stations to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material input by cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash export and sale to domestic customers. Joint ventures with cement companies are being planned to set up cement grinding units in the vicinity of NTPC stations. Power Distribution: „NTPC Electric Supply Company Ltd.? (NESCL), a wholly owned subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in „Rajiv Gandhi Gramin Vidyutikaran Yojana?programme for rural electrification. Nuclear Power: A Joint Venture Company "Anushakti Vidhyut Nigam Ltd." has been formed (with 51% stake of NPCIL and 49% stake of NTPC) for development of nuclear power projects in the country. Coal Mining: In a major backward integration move to create fuel security, NTPC has ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route. Page 9
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Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned subsidiary was created for trading power leading to optimal utilization of NTPC?s assets. It is the second largest power trading company in the country. In order to facilitate power trading in the country, „National Power Exchange Ltd. a JV of NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.
JOINT VENTURE (JV) COMPANIES
The following joint venture companies have been formed in last 2 year:
JVs FOR MANUFACTURING & SUPPLY OF EQUIPMENT
JOINT VENTURE CIL-NTPC URJA PRIVATE LIMITED (CNUPL) ANUSHAKTI VIDHYUT NIGAM LIMITED (ASHVINI) Promoter’s Equity NTPC: 50% CIL: 50% NPCIL: 51% NTPC: 49%
PROPOSED JOINT VENTURES /MOUs/ AGREEMENT’s Joint Venture Agreement has been signed with Asian Development Bank (ADB) and Kyuden International Corporation (Kyushu) on 24.11.2010 for forming a JV Company to develop projects and establish, over a period of three years, a portfolio of about 500 MW of Renewable Power Generation in India. Source- http://www.ntpc.co.in/
Page 10
doc_515134346.docx
This is a documentation is about company analysis of NTPC.
NTPC – Company Analysis
Trend In Power Generation
Power generation is one the most sought field as country?s growth depends upon it and finally consumption of power produced is correlated to country?s GDP. India one the fastest growing economies also requires power in the form of energy, almost 47% of energy produced is utilised in industries. The Market Potential to sustain the GDP Growth rate of India @ 8% plus per annum needs the power sector to grow at 1.8 - 2 times the GDP rate of growth as espoused by economists, planners and industry experts. This would mean a YOY capacity addition of 18,000 - 20,000 MW to achieve this ambitious plan of moving India to a Developed Economy status, as an Economic Global Powerhouse. The total installed capacity for electricity generation in the country has increased from 16,271 MW as on 31.03.1971 to 206,526 MW as on 31.03.2011, registering a compound annual growth rate (CAGR) of 6.4%. The highest rate of annual growth (11.3%) from 2009-10 to 2010-11 in installed capacity was for Thermal power followed by Nuclear Power (4.8%). While industry will continue to grow and substitute for agriculture, industrial growth has gradually decoupled from energy growth. Five Major industries (Iron and Steel, Cement, Ammonia, Aluminum and Pulp and Paper) account for 63 percent of total final energy use in industry. While absolute energy use in these industries grew at 4.1 percent per annum. Most notable is the iron and steel sector, which while accounting for over 30 percent of final energy use within country. India?s cement industry – the second largest in the world after China – is also relatively efficient. The industries average electricity intensity of 88 kWh/ton is the lowest in the world, compared to 119 in China and 140 in the US.
High Energy Prices India has one of the highest industrial electricity rates in the world, exceeding those in the US in most developing countries and in the Organization for Economic Co-operation and Development (OECD), both in absolute terms and much more so on a PPP basis.
Recent- The MOP launched the Standards and Labelling program and the Energy Conservation Building Code (ECBC) in 2006 and 2007 respectively. Under these regulations, the BEE has launched several successful programs, and in the process made noteworthy progress, some of these achievements include: o The manufacturers of four key electrical products (refrigerators, air conditioners, distribution transformers and fluorescent tube lights) have adopted labelling for their Page 1
models. The BEE (Bureau of Energy Efficiency) will make labelling mandatory from January 2010. o 715 large companies are classified as „Designated Consumers? and are required to appoint energy managers. The BEE will soon set efficiency improvement targets for each of these units. o BEE will also provide consumers with an estimate on each star label qualified TV?s annual energy consumption through display of a Kwh/year number. Source- www.mospi.gov.in
PEST Analysis
Political policies Analysis: The allocation on power development during the first four Five Year Plans (FYP) was very low i.e. 10-15% of the total outlay. The low allocation of budget in power sector hampered the rural & urban electrification, and power generation capacity. With rapid industrialization and extensive demand for power both in rural and urban areas, the country has been reeling under severe power shortage and the country?s production effort has been severely curtailed by load shedding almost in all parts of country. Agricultural consumers receive virtually free power (with flat-rate pricing averaging under 0.50 Rs/kWh) and even domestic consumers receive modest subsidies. Together, these are about half the consumption. The remaining paying customers (primarily commercial and industrial) cross-subsidize these sectors through very high tariffs. The Indian government has set large scale goals in the 11th plan for power sector due to which the power sector is poised for significant expansion. Economic Analysis: Industrial output growth in India has closely tracked the movements in the composite index of infrastructure industries during 1980s and 1990s. To accelerate the growth of the economy, government allocated the 28% of the budget in seventh FYP and 23.3% of the budget to the power sector in ninth FYP. But this has come too late and power shortage has become a serious constraint to economic development of India. The decline of infrastructural growth between 1980s and 1990s was mainly from the decline in growth of electricity, coal and petroleum. The share of Central government in this is 37%, i.e. roughly half of corresponding State government subsidies. The recovery-rate for the Centre, in the case of power subsidies, is 36.8%, which is somewhat higher than the corresponding figure of 15% for the States. In order to provide availability of over 1000 units of per capita electricity by year 2012, it has been estimated that need-based capacity addition of more than 100,000 MW would be required. Sociological Analysis: Page 2
The new hydropower plant adversely affected the human being and the other animals. The core problem in displacement is people?s loss of livelihood and their potential impoverishment. The forcibly displacement of communities, create hamper the production system. For increasing the generation capacity over the next 8-10 years, the corresponding investments in the transmission sector is also expected to expand.
Technological Analysis: Green house gas effect are caused by emission of petroleum products. Power is generated at the cost of environment that is not feasible. Emission of SO2, NO2, and Black carbon from power plant is harmful for the people living in surrounding area. The above pollutant of the thermal power plants causes dense / intense fog, haze and smog that cause the respiratory disorder. Huge amounts of ash rich in toxic trace elements and radioactive elements or radio nuclides, are disposed off in large ponds and on open grounds surrounding the power plant, thus contaminating the topsoil and the subsurface aquifer.
Various competitors (comparison of sales & profit in crores)
Name
Market Cap.
(Rs. cr.)
Sales Turnover
Net Profit
Total Assets
NTPC Power Grid Corp Reliance Power Tata Power NHPC Neyveli Lignite Reliance Infra Adani Power Jaiprakash Pow JSW Energy
128,629.24 51,667.73 29,117.21 23,635.80 22,694.87 14,092.76 13,905.60 10,006.36 8,911.05 8,757.89
62,053.58 10,035.33 66.12 8,495.84 5,654.69 4,866.85 17,906.67 3,948.90 1,615.56 5,016.42
9,223.73 3,254.95 310.86 1,169.73 2,771.77 1,411.33 2,000.26 -293.92 402.95 234.64
111,572.36 62,092.11 17,450.60 18,229.27 39,153.15 15,178.57 21,636.80 23,668.77 17,551.83 11,119.71
Page 3
SWOT Analysis StrengthThe Indian electricity market today offers one of the highest growth potential for private players. Government reforms, e.g. distribution network Reforms Program, would be the key factor driving the power sector. The Electricity Act and National Electricity Policy will give impetus to the Indian power sector. WeaknessThere is a huge demand for power in some Indian states due to rapid urbanization and industrialization. private players are increasing with high energy shortage and government support in the form of incentives to set up power plants. However, demand is much higher than supply with deficit is projected to be more than 12% during 2010-11. Power theft is an increasing menace; the culprits use the latest in technology: remote sensing devices, high power electromagnet with capacity to effect recordings of meters.
OpportunitiesRenewable energy creates huge opportunities for power generators as the commitment to generate clean energy and environmental obligations have become top priority for most of the nations around the world. Use of natural sources like wind energy, solar energy. ThreatsNumber of merchant power plants will increase in the years to come with state governments inviting private players to invest in the power sector.
Page 4
Company name: NTPC (National Thermal Power Corporation)
NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. NTPC has come a long way from the day when construction of its first pithead super thermal power project at Singrauli in Uttar Pradesh commenced. It is emerging as an „Integrated Power Major?, with a significant presence in the entire value chain of power generation business. NTPC ranked 341st in the „2010, Forbes Global 2000? ranking of the World?s biggest companies. With a current generating capacity of 39,174 MW, NTPC plans to become a 128,000 MW company by 2032. The total installed capacity of the company is 39,174 MW (including JVs) with 16 coal based and 7 gas based stations, located across the country. In addition under JVs, 7 stations are coal based & another station uses naptha/LNG as fuel. The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources(RES) including hydro. NTPC has been operating its plants at high efficiency levels. Although the company has 17.75% of the total national capacity, it contributes 27.40% of total power generation due to its focus on high efficiency. VISION “A world class integrated power major, powering India?s growth, with increasing global presence” MISSION “Develop and provide reliable power, related products and services atcompetitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society” ? Shri. Arup Roy Choudhury, Chairman & Managing Director since September 01, 2010 Page 5
?
Shri. A.K. Singhal, Director (Finance) since August 2005
HeadquarterLocation-
GeneralManager(BusinessDevelopment) NTPLimited, Core-3,5thFloor,ScopeComplex, LodhiInstitutionalArea,NewDelhI-110003 Tel:91-11-24363861,24322546 Fax: 91-11-24 360759
Growth- As per new corporate plan, NTPC envisages to have an installed capacity of 128 GW by the year 2032 with a well diversified fuel mix comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power based capacity. As such, by the year 2032, 28% of NTPC?s installed generating capacity will be based on carbon free energy sources. To give fillip to its large capacity addition programme, a Project Monitoring Centre (PMC) has been set up by NTPC. PMC has the facility of video wall for video conferencing with all web based projects monitoring with respect to schedule.
ShareHolding Pattern- NTPC has total staff strength of nearly 24,000.
Page 6
Financial performance of NTPC during 2011 was (in crores)
Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses
55,216.69 278.01 54,938.68 2,525.48 0 57,464.16 31.33 35,796.37 3,395.27 1,273.14 2,264.01 525.63 -1,052.98 42,232.77
Page 7
SWOT analysis for NTPCStrength Of NTPC ? ? ? ? ? ? ? ? The company has kept with itself sufficient liquid funds to meet any kind of cash requirement. Efficient and timely completion of projects. A minimum risk factor. Best-integrated project management systems. An early starter-more than 30 years experience in power sector. Excellent growth prospects with significant additions, modifications and replacements. Employee-friendly personnel policies. Low project cost of NTPC?s plants.
Weaknesses Of NTPC ? ? ? Depleting raw materials. Some of the Plant have become old and need investment in Renovation & modernization. Less manpower.
Oppurtunities ? Reduce demand and supply gap. ? Upcoming hydro and nuclear sector. ? Huge opportunity in consultancy services. Threats To NTPC ? Rising prices of raw materials ? Huge competition from SEB?s, Reliance Energy, Tata power and other Private development. ? Coming up of other sources of power. ? Huge Capital requirement for expansion, diversification, horizont&vertical integration and R & M. Page 8
Strategies Of Company & Joint Venture
Commensurate with our country?s growth challenges, NTPC has adopted a multi-pronged strategy such as Greenfield Projects, Brownfield Projects, Joint Venture and Acquisition route. Apart from this, NTPC has also adopted the Diversification Strategy in related business areas, such as, Services, Coal Mining, Power Trading, Power Exchange, Manufacturing to ensure robustness and growth of the company. Looking at the opportunities coming its way, due to changes in the business environment, NTPC made changes in its strategy and diversified in the business adjacencies along the energy value chain. In its pursuit of diversification NTPC has developed strategic alliances and joint ventures with leading national and international companies.
?
Hydro Power: In order to give impetus to hydro power growth in the country and to have a balanced portfolio of power generation, NTPC entered hydro power business with the 800 MW Koldam hydro project in Himachal Pradesh. Two more projects have also been taken up in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW. Renewable Energy: In order to broad base its fuel mix NTPC has plan of capacity addition of about 1,000 MW through renewable resources by 2017. Ash Business: NTPC has focused on the utilization of ash generated by its power stations to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material input by cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash export and sale to domestic customers. Joint ventures with cement companies are being planned to set up cement grinding units in the vicinity of NTPC stations. Power Distribution: „NTPC Electric Supply Company Ltd.? (NESCL), a wholly owned subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in „Rajiv Gandhi Gramin Vidyutikaran Yojana?programme for rural electrification. Nuclear Power: A Joint Venture Company "Anushakti Vidhyut Nigam Ltd." has been formed (with 51% stake of NPCIL and 49% stake of NTPC) for development of nuclear power projects in the country. Coal Mining: In a major backward integration move to create fuel security, NTPC has ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route. Page 9
? ?
?
?
?
?
Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned subsidiary was created for trading power leading to optimal utilization of NTPC?s assets. It is the second largest power trading company in the country. In order to facilitate power trading in the country, „National Power Exchange Ltd. a JV of NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.
JOINT VENTURE (JV) COMPANIES
The following joint venture companies have been formed in last 2 year:
JVs FOR MANUFACTURING & SUPPLY OF EQUIPMENT
JOINT VENTURE CIL-NTPC URJA PRIVATE LIMITED (CNUPL) ANUSHAKTI VIDHYUT NIGAM LIMITED (ASHVINI) Promoter’s Equity NTPC: 50% CIL: 50% NPCIL: 51% NTPC: 49%
PROPOSED JOINT VENTURES /MOUs/ AGREEMENT’s Joint Venture Agreement has been signed with Asian Development Bank (ADB) and Kyuden International Corporation (Kyushu) on 24.11.2010 for forming a JV Company to develop projects and establish, over a period of three years, a portfolio of about 500 MW of Renewable Power Generation in India. Source- http://www.ntpc.co.in/
Page 10
doc_515134346.docx