Project on Save Energy for Benefit of Self and Nation

Description
Efficient energy use, sometimes simply called energy efficiency, is the goal to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature.

Chapter- 01
General Inoformation Of Company

1

1.1 INTRODUCTION
The Government of Gujarat unbundled and restructured the Gujarat ElectricityBoard (GEB) with effectfrom 01.04.2005. The Generation, Transmission&Distribution businesses of thereat while Gujarat ElectricityBoard were transferred to seven successor companies.

? The seven successor companies are listed below:
1. Gujarat StateElectricityCorporationLimited (GSECL)(A Generation Company)

2. Gujarat EnergyTransmissionCorporationLimited (GETCO)( A Transmission Company)

? Four Distribution Companies:
3. Dakshin Gujarat VijCompanyLimited (DGVCL) 4. Madhya Gujarat VijCompanyLimited (MGVCL) 5. Uttar Gujarat VijCompanyLimited (UGVCL) 6. Paschim Gujarat VijCompanyLimited (PGVCL) 7. Gujarat UrjaVikas and Nigam is Limited (GUVNL) – A of

HoldingCompany

also

responsibleforpurchase and

electricityfromvarious Companies

sources

supplytoDistribution

The Government of Gujarat videnotification dated 3rd October 2006 notified the finalopeningbalance sheets of the transferee companies as on 1st April 2005, containing the value of assets and liabilities, which stand transferred from the erstwhile Gujarat Electricity Board to the transferee companies including Uttar Gujarat Vij Company Limited (UGVCL).Assets and liabilities (gross block, loans and equity) have been considered by the Commission in line with the Financial Restructuring Plan (FRP) as approved by Government of Gujarat.

2

1.2

HISTORY OF THE COMPANY

As a part of the reform process, the Government of Gujarat has unbundled the variousfunctions of GEB. As a result of this unbundling, Gujarat

StateElectricityCorporationLimited (GSECL) has taken up the responsibility of electricity generation. Electricity Transmission has been entrusted to the already existingcompany GETCO. Distributionnetwork in the state has been splitup among four distribution companies, which cater to the northern, central, southern, and western parts of the state respectively. All these companies have been structured as subsidiaries of a holding company, Gujarat UrjaVikas Nigam Limited (GUVNL). GUVNL is also the single bulk buyer in the state as well as the bulk supplier to distribution companies. It will also carry out the trading function in the state. The pictorialrepresentation of the restructuring is as given below.

GUVNL (Holding Company)

As a part of PowerReform Process, the ElectricityAct, 2003, was passed by the CentralGovernment and Gujarat Electricity Industry (Re-organization & Regulation) Act, 2003, was passed by the Government of Gujarat to restructure the Electricity Industry with an aim to improveefficiency in management and delivery of services to consumers. Under the provisions of the said Acts Govt. of Gujarat framed the Gujarat 3

Electricity Industry Re-organization and ComprehensiveTransfer Scheme, 2003, (the Transfer Scheme) videGovernment Notification dated 24-10-2003 for transfer of assets/liabilities etc. of erstwhileGEB to the successor entitiesAccordingly erstwhile Gujarat Electricity Board (GEB) was reorganized effective from 1st April, 2005 in to Seven Companies withfunctional responsibilities of Trading, Generation, Transmission and Distribution etc. The Companies incorporated are as under:

1. Gujarat Urja Vikas Nigam Ltd. (GUVNL) 2. Gujarat State Electricity Corp. Ltd.(GSECL) 3. Gujarat Energy Transmission Corp. Ltd.(GETCO) 4. Uttar Gujarat Vij Company Ltd. (UGVCL) 5. Dakshin Gujarat Vij Company Ltd. (DGVCL)

- Holding Company - Generation -Transmission -Distribution -Distribution

6. Madhya Gujarat Vij Company Ltd. (MGVCL) -Distribution 7. Paschim Gujarat Vij Company Ltd. (PGVCL) -Distribution

The Gujarat Urja Vikas Nigam Limited was incorporated as a Govt. of Gujarat Company. Since 100% Shares in the other six companies are held by GUVNL w.e.f 1st April,2005 they have become Subsidiary Companies of GUVNL as per the provisions of the Companies Act,1956.The GUVNL is engaged in the business of bulk purchase and sale of electricity, Supervision, Co-ordination and facilitation of the activities of its six Subsidiary Companies. The GSECL is engaged in the business of Generation of Electricity. The GETCO is engaged in the business of Transmission of Electricity. The UGVCL,DGVCL,MGVCL and PGVCL are engaged in the business of Distribution of Electricity in the Northern, Southern, Centraland Western areas of Gujarat respectively.

4

1.3 ORGANISATIONSTRUCTURE OF UGVCL

Board of Directors
Managing Director

Technical Dept

Finance Dept GM (Finance ) SE Tech3 SE Tech4

HR

CE(OP) ACE (Tech) SE Tech 1 SE Tech 2 CE(P&P )

OS D ACE (Civil) SE (Civil ) OSD (Security )

CF M
COA

EE (TU )

SE Manager (P&P) (CC)

1.3.1 STRUCTURAL DIAGRAM OF UGVCL
5

Corporate Office Himatnagar Circle Sabarmati Circle Mehsana circle Palanpur Circle

1.3.2 UGVCL Board Of Directors

1.Shri Guruprasad Mahapatra,IAS, 2.Shri A.K.Verma,IFS, 3.Shri L.Chuaungo,IAS, 4.Shri M.K.Iyer, 5.ShriH.P.Desai 6.Prof. Ajay Pandey 7.Dr.B.A.PrajapatiDirector 8.ShriK.P.PatelDirector

Chairman Managing Director Director Director Director Director

1.3.3 HIERARCHICALSET UP OF OFFICE POSITIONS

6

Managing Director

C.E(P&P)

C.E(Op)

GM(F)

CFM(F) Addl.C.E. (P&P) GM(HR) AOA(F) AOA(F) S.E. Himatnag ar Circle AOA(A /C) AOA(A/C)

Addl.C.E. Sabarmati Circle

S.E. Mehsana Circle

S.E. Palanpur Circle

1.3.4 BUSINESS RELATIONSHIP

7

GUJARAT STATE ENERGY CORPORATION LIMITED

GUJARAT ENERGY TRANSMISSION COMPNY LIMITED

UTTAR GUJARAT VIJ COMPANY LIMITED (In North Gujarat)

Different Consumer Sectors

HT/LT Industrial Agric ultura l

Residential

Comm ercial

Public/Pri vate Water works

?

GSECL is involved in electricitygeneration when generation is not adequateto meet the demandit is purchased fromprivate producers. For that purposepower purchase agreements are executed by GUVNL. For that purpose various generating Power Plants are installed.

?

GETCO is involved in transmission of electricity generated by GSECL or purchased fromprivate producers up to the distributing companies (Discoms). For that purpose transmission network at high voltage and Sub Stations are erected.

?

Four Distribution companies located in four parts are involved in distribution of Electricity. Energy is fed in this Distributing companies from GETCO. Uttar Gujarat Vij company Ltd is supplying energy in northern part of GujaratState. Same way Madhya Gujarat Vij company Ltd in Central Gujarat, Dakhshin Gujarat Vij Company Ltd in Southern part of Gujarat and Pashchim Gujarat Vij Company Ltd in Western part of Gujarat.

?

Gujarat Urja Vikas Nigam Ltd is a parent company. Mainjobassigned to GUVNL is coordination between all these six companies. 8

?

All the Companies are functioningindependent and are managed independently.

1.3.5 DETAIL OF CONSUMERS

HT Industrial LT Industril residential Commercial Street Light Water works Agricultural Railway Others

? ? ? ? ? ?

Main chunk of consumers are Residential Category. They are house hold domain. There two different tarifffor these categories for in town area and rural area. Commercial consumers are the second largest section of the graph. Agricultural are the third largest number of consumers. Water Worksconsumer are the least numbers. HT Industrial consumers are less in number. But from the viewpoint of revenue they are the mostimportantashighest revenue at higher marginal cost. Railway consumers are less but fromviewpoint of revenue which gives highestmargin over other consumers is evidenced later on.

1.3.6 AREA MAP OF UGVCL

9

Figure1

1.4

UGVCL Company Profile

10

As a part of effortstowards restructuring of Power Sector, a new Company known as Uttar Gujarat Vij Company Ltd. was incorporated on 15th September, 2003 by Gujarat ElectricityBoard (GEB). The Company obtained the Certificate of the Commencement of Business on 15thOctober, 2003. The MainObject to be pursued in terms of the Memorandum and Articles of Association of the Company are as under: Toundertake the electricity sub-transmission distribution and retailsupply in the State of Gujarat or outside the State and for this purpose to plan, acquire, establish, construct, erect, lay, operate, run, manage, maintain, enlarge, alter, renovate, modernize, workand use a powersystemnetwork in all its aspects and also to carry on the business of purchasing, selling, importing, exporting, wheeling, trading of electrical energy, including formulation of tariff, billing and collection thereof and then to study, investigate, collect information and data, review operations, plan, research, designand prepare project reports, diagnose operational difficulties and weaknesses and advise on the remedial measures to improve and modernize existing sub-transmission and supply lines and sub-stations. The Gujarat ElectricityIndustry (Re-Organization & Regulation) Act 2003 has paved the wayforcomprehensivereform and restructuring of the StateElectricity Board with an aim to restructure the Electricity Industry in the manner that willensure the long termviability and sustainability of the Power Sector. As a part of Reform Process, it has been envisaged to disaggregateGEB, the Promoting Body into separate entities with functionalresponsibilities for generation, transmission and distributionrespectively with complete autonomous for operations. The ElectricityAct 2003 hasintroduced competitionby way of Open Access both in the Transmission as well as Distributionarea. The said Act also provides forreorganization of the Electricity Boards through appropriateTransfer Schemes being formulated by the StateGovernments. The Government of Gujarat has already reorganized the GEBfunctionally into a GenerationCompany, a Transmission Company and 4 Distribution Companies. Thereby "UTTAR GUJARAT VIJ COMPANY LIMITED" became functional since 1st April, 2005. Electricity Boards through appropriate Transfer Schemes being formulated by the State Governments. The Government of Gujarat has 11

already reorganized the GEB functionally into a Generation Company, a Transmission Company and 4 Distribution Companies. Thereby "UTTAR GUJARAT VIJ COMPANY LIMITED" became functional since 1st April, 2005.

1.5

Vision, Mission& Values

VISION

12

?

Tobe

world-class

electricity

utility,

striving

for

the

social

and

economicdevelopmentof our region

MISSION
? ? ? ? ? ?

We meet the expectations of our customers and stakeholders by. Providing a sustainable, affordable, safe and reliableelectricitysupply Providing prompt and efficientcustomerservices Developing and incentivizing our employees Being the preferredequalopportunityemployer Undertaking our business in an environmentally acceptable manner

VALUES
? ? ? ? ? ? ? ?

Respect Honesty Loyalty Ethical businessconduct Pride and Ownership Service excellence Superior performance Team culture

1.6

AWARDS & HONOURS

1.6.1 UGVCL Awarded by Prime Minister

13

UGVCL IS AWARDED BRONZEMEDAL BY PRIMEMINISTER ON 21ST MARCH’2007 FOR ITS EXCELLENTPERFORMANCE IN POWER DISTRIBUTION. IN CRITERIA AS DECIDED BY CENTRALELECTRICITY AUTHORITY, UGVCL SECURED 74.51% REDUCTION, MARKS, FOR VARIOUS PARAMETERS LIKE LOSSES RISE, CONTINUITY OF POWER SUPPLY,

REVENUE

TRANSFORMERFAILURE REDUCTION, METERING PROGRESS ETC. B. R. Joshi of UGVCL and Romi Bhatia of GETCO remained present. Seen in the above
photo are G. Mohapatra, Chairman (middle) and H. S. Patel, Managing Director (right) of UGVCL accepting the award.

At the function organized at New Delhi, on 21st March, 2007, Dr. Manmohan Singh, PrimeMinister awarded National Awards for Meritorious performance to companies of Gujarat viz. Gujarat Industries PowerCompanyLimited (GIPCL), Uttar Gujarat Vij Company Limited (UGVCL) and Gujarat EnergyTransmissionCorporation Limited (GETCO). Smt. Vijaylaxmi Joshi, Principal Secretary, Energy& Petro-Chemicals Dept., Government of Gujarat and KeyOfficials of the above three companies L. Chuaungo, G. 14

Mohapatra, H.S. Patel, P.H. Rana, D.G. Nayak and S.K. Negi received the National Awards.

1.6.2 UGVCL gets its Meter Testing Lab NABL Accredited.......
ISO / IEC 17025: 2005 for Hi-Tech Lab. of UGVCL
Hi-Tech MeterLab Sabarmati is Accredited by NABL (National AccreditationBoardfor Testing &Calibration Laboratories) w.e.f. 23rd May ‘2007.Hi-Tech Meter Lab,

Sabarmati is the First NABL accredited Lab amongst stateowned DISCOMS of India. At our Hi-Tech Meter Lab, Sabarmati we have a Fully Computerised Meter TestEquipment of 0.05 Accuracyclass of MTE make, GERMANY. This laboratory hasspecialfeatures like testing all type of EnergyMeters with IsolationCurrentTransformer(ICT) facility whereby we can test closed link energy meters without opening link between current &voltage circuits. Simultaneously (20) meters of same make&capacity can be tested. Each meter has a scanner, error finder & ICT fitted on bench for giving appropriatecomputerized analysis and readings of each meter through computer softwareprogramme. The Currentrange of this TestEquipment is from 1 mA (Mili Ampere) to 120 A (Ampere) and its voltage range is from 30 Volts to 300 Volts

1.6.3 OTHER
? ? UGVCL became ISO 9001:2000 certified company SecondPrizeforEfficientCostManagementSystem by ICWA in 2008 15

?

First PrizeforExcellence in RuralElectrification at IEEMA Power Awards-2009

1.7

ROAD MAPfor UGVCL ACTIVITIES

•
•

Modernization of low TensionDistributionSystem (LTDS )toimprove the efficiency, Introduction of High VoltageDistributionSystem (HVDS )toreduceAT & C losses especially in the areas with high losses and to ensureaccurate and universal metering of all connected consumers

• •

Demand Side Managementto manage the load in such a way that load curve is flattened, A SCADA based systemforenergyaccounting and audit, consumer profiling &indexing shall be carried out in all the major towns of the Company with detailed GIS mapping,

•

UrbanAgenda - distributioninfrastructureplanningforurban areas toimprove its infrastructure to reduceaccidents and also to meet the overall urban plan, trafficregulations and for overall aesthetics of city planning. The Company also plans to take up conversion of overhead lines with underground cables which are safer than the overhead lines at select locations. The underground cables would also reduce the theft of electricity.

• •

Improvement of Metering, Billing and Collection( MBC ) Cyclefor ensuring commercial viability ConsumerRelationshipManagement ( CRM ) - the Company plans toadopt CRM and associated tools in all its functions and efforts like setting up of call centers for information dissemination, 24 hours fault centers, Computerized Complaint Management ( TCM ), GrahakAdhikarPatra, complaint handling and

16

billrelatedassistance to consumers and establishment of integrated consumer centers etc. • Modernization of low TensionDistributionSystem( LTDS ) toimprove the efficiency,

1.8

Quality Policy

All UGVCL employees and associates shall relentlessly strivetouphold the position ofUGVCL as a leading DISCOM in the country by: ? ? ? ? ? ? ? ? ensuring to meet the expectations of respectiveinternal and external customers ensuring excellence and timeliness in provision of services and execution of works providing an affordable, safe and reliablepowersupplyasperregulatory norms andsafety standards continuous monitoring, reviewing and upgrading of electrical distribution systems ensuring protection of environment through continual reduction in energy losses shouldering socialresponsibility of sustained powerto the institutions of national importance, farmers and rural consumers ensuring a vibrant workculture by motivating and empowering employees and associates through appropriate training, communication and participation complying and continually improving qualitymanagement processes and services using effectiveimplementation of modernmanagement principles and practices

Managing Director July 01, 2008

17

1.9JYOTIGRAM YOJANA

One of the initiative of Gujarat Government is JyotigramYojana. Under this scheme villages which were supplied power through common feeder to agricultural and rural villages were segregated in agricultural feeders and Jyotigram Feeders. Jyotigarm Feeders now supply power to villages three phase round the clock. In past against limited power generation when peak demands were established during early morning and in evening this mix feeders have no supply due to load shadding. Need of power in villages was also as on peak as due high growth of milk industry in Gujarat to milk cattles and crediting milk in co-operative milk collecting dairy branches. They use electronic machines for getting fat content of milk and making notes of quantity of milk credited, fat, cost etc. in computer run progammes. In Uttar Gujarat Vij Company Ltd also all the villages falling under its jurisdiction are now connected on Jyotigram Feeders. There are total 457 feeders supplying power to 4607 villages. Out of total 4618 villages 3 are submerged and 3 are uninhabited. Remaining 5 villages are supplied power through solar sells. Total expenditure incurred on this scheme is Rs.314.25crores. Impact of JyotigramYojana is so large it has taken note not only in India but over the world. It has impact in the form of increased employment, reduced urban migration, rise in purchase of durable goods, reduced damage of electric goods. It has high impact on education and health. A study has shown education duration increased by90%, schooldrop out reduced by 80% and absenteeism reduced by13%. Media exposure has increased, cultural effects have been seen. Use of IT and Computer has increased. Sale of cold drinks and ice cream increased. Business hours increased, drinking water reliability increased, employment increased. It has best supported milk and cattle business. Due to availability of round the clock electricity safety and security has improved. 18

Benefit to company is reduction in losses. In past agricultural and rural areas were supplied power from common feeders. Due to limitations of production and other measures against exploitation of ground water three phase supply was given 8 to 12hrs a days. For other period of the day single phase supply was given. During single phasing agricultural consumers by using illegal capacitors (teta-a local name given to capacitors) convert single phase to two phase. Capacitor-teta used for phase shift. Due to this loading on three phase is unequal. Two phase draw current and one is dead. Due to this obviously high units utilized by agricultural consumers specifically HP tariff consumers who pay bill on contracted HP bases not on meter reading bases. These units totally got saved. Other benefit is the claim of subsidy from Government for agricultural consumption. Third is due to use of capacitor-teta or phase converter load on transformers was high on two phases. So transformers frequently got failed. Now this rate has come very low. Cost spent on transformer replacement, maintenance and repairing has reduced.

19

Chapter -02

PRODUCTION DEPARTMENT

20

2.1 INTRODUCTION
UGVCL is not power generated company, it is only distributing power.

The Company was promoted by erstwhile Gujarat Electricity Board (GEB) as its wholly owned subsidiary in the context of liberalization and as a part of efforts towards restructuring of the Power Sector.GSECL has initiated its activities in the field of Generation of Power. The Government of Gujarat (GoG) has also given to the GSECL the status of Independent Power Producer (IPP) with approval to undertake new power projects.. The Company commenced it’s commercial operation in the year 1998. However, the operations of GSECL were limited to Power Stations units Gandhinagar #5, Wanakbori #7, Utran GBPS &Dhuvaran CCPP till the complete unbundling of erstwhile GEB was undertaken, i.e. up to 31st March 2005 Power is one of the basic infrastructures necessary for the Industries and socio economic development in the State. The installed capacity of the State has increased from 315MW in 1960-61 to 9561 MW in 2006-2007. Per capita consumption of power in the State of Gujarat in 2005-06 was 1313 Units (as per CEA revised formula) which is much higher than all India average. In pursuit of fresh capacity addition, Lignite Based 75 MW units no. IV at KLTPS, Panandhro, is expected for commissioning soon i.e. by July,2008 112.45 MW Dhuvaran CCPP-II is under Commercial Operation since November 2007.370 MW Utran Gas Based CCPP-II is under execution and more than 57% project work is completed. Following projects are taken up by GSECL as a part of capacity addition of 10752 MW during 11th Five Year Plan envisaged by Government of Gujarat.

21

2.2 Power Plants

Existing Power Plants
Sr. No. Name of Power Stations No. of Units Total MW/ Station

I. Thermal Power Stations 1. Gandhinagar Thermal Power Station ii. 3x210 2. Ukai Thermal Power Station i. 2x120 850 i. 2x120 870

ii. 2x200

iii. 1x210 3. Wanakbori Thermal Power Station 4. 5. Sikka Thermal Power Station Dhuvaran Thermal Power Station 2x120 i. 2x110 240 220 i. 7x210 1470

II. Gas Based Power Stations 1. Dhuvaran GBCCPP Unt-I i. 1x67.85 107

ii. 1x38.77 22

2.

Dhuvaran GBCCPP Unt-II

i.

1x72.51

112.45

ii. 1x39.94 3. Utran Gas Based Power Station (STG) ii. 1x45 III. Lignite Power Station 1. Kutch Lignite Thermal Power Station ii. 1x75 IV. Hydro Power Stations 1. 2. 3. Ukai Hydro Power Station Kadana Hydro Power Station Ukai left Bank Canal Hydro Power Station 4. PanamCanal Mini Hydro Power Station Total (I+II+III+IV) 4766 i. 2x1 2 i. 4x75 i. 4x60 i. 2x2.5 300 240 5 i. 2x70 215 I. 3x30 135

Power Projects Under Implementation

1. Kutch Lignite Thermal Power Station 2. Utran Gas Based Power Station 3. Sikka Coal based Power Station 4 Ukai Coal based Power Station Total

1 x 75 1 x 370 2 x 250 1 x 500

75 370 500 500 1445

23

2.3Sector Structure
As a part of the reform process, the Government of Gujarat has unbundled the various functions of GEB. As a result of this unbundling, Gujarat State Electricity Corporation Limited (GSECL) has taken up the responsibility of electricity generation. Electricity Transmission has been entrusted to the already existing company - GETCO. Distribution network in the state has been split up among four distribution companies, which cater to the northern, central, southern, and western parts of the state respectively. All these companies have been structured as subsidiaries of a holding company, Gujarat UrjaVikas Nigam Limited (GUVNL). GUVNL is also the single bulk buyer in the state as well as the bulk supplier to distribution companies. It will also carry out the tra ding function in the state. The pictorial representation of the restructuring is as given below: Figure 1: Sector Structure Post Unbundling (Erstwhile GEB)

Commercial Arrangements

24

As per the new sector structure, GSECL has entered into a Power Purchase Agreement (PPA) for selling energy with GUVNL. The contractual / commercial

arrangements post unbundling are represented diagrammatically below:

2: Contractual Framework Post Unbundling

25

Chapter-03
HUMAN RESOURCE DEPARTMENT

3.1

INTRODUCTION

26

As a part of efforts towards restructuring of Power Sector, a new Company known as Uttar Gujarat Vij Company Ltd. was incorporated on 15th September, 2003 by Gujarat Electricity Board (GEB). The Company obtained the Certificate of the Commencement of Business on 15th October, 2003. HR function is one of the most important function of management of the company. HR is directed by CE (P&P).This function is carried out by HR Department headed by I/c AGM, DGM (HR) and Personnel Officer on personnel side and DGM (IR) and IRO on industrial relations side. Information about Employees maintained in Service Books and Personal Files. In E-Urja ORACLE HRMS Manager provide comprehensive sets of Human Resource

Information. We can generate or export numbers of Reports containing Employee record entered in HRMS. We are maintaining all Employee records in E-urja including Personal information, Assignment info, Address, Nominations, Physical Status, Medical check up, Training maintained in E-urja.We have

etc. All information maintained in Service Books is also

trained all HR Persons up to Sub-divisions for Self Service, where as comprehensive training of HRMS provided to Division & Circle HR Personals in E-urja. In addition to the modem infrastructure, the Institute has a state of art library, well equipped computer facility, gym and other amenities to provide a highly invigorating learning ambiance Line staff meeting Complain of material quality Sense of participation/Safety valveJEs meeting Role clarity neededNeed of e-urjatrainingNeed of technical clarification/ guideline to the staff.

3.2STUCTURE OF HR DEPT.

27

HR Dept

CE(P&P ) I/c AGM (HR)

DGM (IR) IR O PO

DGM(HR)

3.3 MAINPOLICIESIN HR
? ? ? ? ? ? ?

Human Resource Information System Manpower Planning Recruitment Seniority, Promotion, Probation Period, Pay Fixation Transfer Policy Payroll, Increment, Pay revision Medical Claim Reimbursement various types of Leave Higher Grade ,Alternate Higher grade Termination of Service – Retirement, Resignation &Dismissal 28

?
? ?

? ? ? ? ?

Compensation LTC Benefit Final Settlement & Benefits GEB Death & Accident Compensation Scheme Training (Managed by GETRI)

Industrial Relations
? ? ? ? ? ? ? ? ? ? Annual Confidential Reports Disciplinary Action, Status of pending Disciplinary Action&Pending ACB CasesCompensation Uniform & Uniform Articles, Staff Welfare Activities Sports, Cultural Activities Union Grievance Mechanism, Check off System Right to Information, PIO & APIO Government, MP/MLA References Nirmal Gujarat

Human Resource Information System
? ? ? ? Information about Employees maintained in Service Books and Personal Files. In E-Urja ORACLE HRMS Manager provide comprehensive Resource Information. We can generate or entered in HRMS. We are maintaining all Employee records in E-urja including information, Assignment info, Address, Nominations, Medical check up, Training etc. ? All information maintained in Service Books is also maintained in E-urja. Personal Status, export numbers of Reports containing Employee record sets of Human

Physical

29

?

We have trained all HR Persons up to Sub-divisions for Self where as comprehensive training of HRMS provided HR Personals in E-urja.

Service,

to Division & Circle

Employee Salary Information

? ? ? ?

Monthly Gross Salary of Company :- Rs 109590652/Monthly Net Salary of Company Gross Salary of Corporate Office Net Salary of Corporate Office :- Rs 70019122/:- 4750164.40/:- 3200677.84/-

3.4MANPOWER PLANNING
Sanctioned Staff

?

30

Mehsana 2028

Sabarmati 1715

Palanpu r 1974

Himatnagar 1427

Class
I II III IV

Technic al 267 366 922 2647 4202

Non Technical 24 71 2525 474 3094

Total Employe 291es 437 3447 3121 7296

Police Personnel

:- 47

Ex-Service Man on contract :-120 31

Employee Age Details

Analysis of Age group. ? ? ? Average Age = 45 Years (44.86) 53.98% Employees above 45 years 10.45% Employees below 30 Years

Below Age 55-60 years 50-55 years 45-50 years 40-45 years 35-40 years 30-35 years 25-30 years 20-25 years
3.5 RECRUITMENT

Percentage 14.34% 20.28% 19.36% 15.48% 9.96% 10.13% 6.51% 3.94%

32

Desi Minimum Recr Promotion Chances g Required uit BE / B Tech 151 For Deputy JEn Qualificatio ed (Electrical) Engineer(17-18 a n till with Years) ti no 366 For SrAsst (14-15 (17-18 JA Graduation 60% (55% Ex. Engineer o w with 60% Years) Years For n or above Dy SA (8-10 Years) reserved (55% For Superintendent thcategory) Help 10 reserved For Lineman 489 (5-6Asst Years) Pass + e ITI Category (12-15 Years) r Lineman (6-7 ) Electricia Recruited various post by Advertisement i.e. Legal Years) Advisor, OSD (Security), Law n/ Officers, Jr Programmers, Manager (CC), Management Trainee (Finance) Asst. Wireman)
Manager (Agri), Stenographer (Gujarati).EE(TU), Programmer, DE (TU), APO, selected from eligible departmental candidates. Recruitment for JA (VS), JE (VS), Dy SA (ST) from Open Market where as Jr IO from Departmental Candidate. Under Apprentice Amendment Act 1973, Allotment made under Scheme for 39 candidates. Out of these 10 Seats to Diploma Holder and 29 Seats for Graduate in Engineering. Stipend for Diploma Holder is Rs 1400/- where as for Graduate Holder Rs 1970/- PM respectively Under State Scheme ITI in Wireman/Electrician are allotted as per the ratio of Technical Persons working in Circle Offices.

3.6 Seniority, Promotion, Probation Period & Pay Fixation

33

Seniority
? ? ? The Seniority of Class-I and II Technical/Non Technical Officers are being maintained at corporate level. The Seniority of Class III Employees those are Rs.5000-10525 is also working in the Scale of

being maintained at Corporate level. Below) is being maintained at

The Seniority of Class-III (Pay Scale 4000 & Circle level and in view of GSO 156

Class-IV employees are being maintained at Division level

?

Promotion channel up tolevel of EE &equivalent Merit.

are based on Senioritycum

Promotion
? ? ? Promotion of SE equivalent & above based on Performance and Interview on Merit cum Seniority. Promotion for rest of posts is based on Seniority cum Merit. Subject to passing of Departmental & Professional Exams, No Adverse in CR or no Disciplinary Action or Court case pending. personal

Probation Period
? All appointments shall be on probation for a period of Six months which can be extended to a further period of three months by the competent authority if performance not found satisfactory but Probationary Period shall not be more than 12 months.

Fixation of pay
? The provisions of Regulation No.58 Employee’s service regulations provide for certain benefit in the matter of fixation of pay in the case of promotion from a 34

lower to a higher post in over-lapping scales of

pay.

These

benefits

are

applicable to only permanent employees of the Company as per Service Regulations 102(B) on

3.7

Payroll, Increment, Pay Revision

Payroll
? ? Payroll System is attached with E-Urja Oracle HRMS, Finance Module and take directly effect of transaction performed by Self Service, AP. Medical Claims, Leave- Field Allowance, Recovery of Advance and penalty performed by System automatically as per rules.

Increment
? As per the service regulations, the annual increments of the staff are releasing regularly on first day of month subject to no LWP/EOL as well as passing of Departmental Exams and no imposition of Punishment.

Pay Revision
35

? Present Pay scales are awarded under GSO 325 and 325(A). ? Following are the present Pay Scale • • • • • • • • • • • • 2750-70-3100-75-3550-85-4315-100-5215 4000-150-4900-175-5775-200-7775-225-10025 5000-200-6200-225-7775-250-10525 6500-250-9000-275-11750 3400-100-4100-125-5350-150-6550-175-8300 3200-85-3880-100-4680-125-6305-150-6905 8000-300-11000-325-13600 8500-300-11200-325-12500-350-14250 10400-350-12150-375-15525 13000-400-18600 16000-450-20050 18400-500-22400

? Next Pay revision is due w.e.f01-01-06.

3.8

Medical Facilities

?

The Medical facilities are applicable to our regular employees only subject to norms decided by Erst while GEB.

Medical Claims as per DOP is as follow…
? ? ? Up to Rs 10000/- at Division Office (EE Level) Up to Rs 25000/- at Circle Office (SE Level) Rs 25000/- and above at Corporate Office (CE Level) 36

?

In Case of Accident while on duty we are paying 100% reimbursement to the concern Employee irrespective of the Category whether permanent or VidyutSahayak or Apprentice to the dependent covered under Family definition.

3.9

Final Settlement & Benefits, GEB Death Compensation Scheme
Benefits
? ? ? ? ? ? ? Gratuity. CPF EPS/Family pension Leave Salary(300 Max) SVCRDBF Group Insurance Death & Accident Claim under GSO-288

& Accident

Death & Accident Compensation Scheme
? This Scheme is introduced under GSO-288 dated 8-05-1980.The benefits under the scheme are as under. ? Class I Officer ? ? ? ? ? ? ? Chief Engineer. Additional Chief Engineer SE/DOS/COF/ & officers of equivalent rank LA/LRO/DYCAO/EE/PRO/MO/ PS to chairman & equivalent. Deputy Engineer Rs. 20,000 37 Rs. 30,000/Rs. 50,000/Rs. 40,000/Rs. 35,000/-

? ? ? ?

AO & equivalent

Rs. 25,000/-

Class-II Officers Class-III employees Class IV employees

Rs. 15,000/Rs. 8,000/Rs. 5,000/-

3.10Training& Development Programme Managed by GETRI

Sr.No.
01 02 03 04 05 06 07 08 09 10 11 12 13

Name of training
Drum Project Refresher training Financial/Non-financial training Chintan sibir HR Training Electricity Act 2003 Right to Information Act Woman empowerment and Law Skill development through behaviour Science for trade union Best practices in distribution loss reduction GIS support net work planning & Analysis management Training programme on “CAD” for Civil Engineers. IT application in bulk energy billing.

?

We are paying 0.5% pa of our total Salary to GETRI as raining Cost.

3.11

OTHER

Uniforms 38

? ?

We are providing uniform to all categories of employees in all Circles along with Shoes for the period of two years. We have also provided Identity cards to all Employees

HR ApkeDwar ? Visited 80% Offices under this Programme

Staff Welfare Activities ? Staff Welfare activities like Merit Awards, Reimbursement of Educational Fees, and Reimbursement of MedicalBillfrom SWF.

39

Chapter – 04
TECHNICAL DEPARTMENT

4.1

INTRODUCTION

40

The Company is responsible for reliable and affordable power Distribution to residential areas, commercial complexes, streetlights, waterworks, agriculture, traction as well as industries. Major functional areas ofUGVCL are as under. Operation and Maintenance of HT/Lt lines, DistributionTransformer centers (DTC), Protective equipments etc.Erection and installation of new HT/LT lines, DTC, Serviceconnections, protective equipments etc.Design, development and implementation of system improvement schemes. Identification and implementation ofGovt./NonGovt.sponsored scheme. Rural Electrification activities viz.Jyoti Gram Yojana (JGY),Rajiv Gandhi GraminVidyutikaranYojana (RGGVY), Tribal Area Sub-Plant (TASP), Tatkal, SCP, Well Electrification, Border Area Development Plan, PradhanMantriGramodayaYojana etc. Demand side load management. Reduction in losses, Revenue enhancement, Reliable andquality Power Supply. Electricity is distributed to 2.16 million consumers through 66.665 CircuitKilimeter (ckm) of HT lines 58.895 ckm of LT lines and 108064transformers.

4.2STUCTURE OF TECHNICAL DEPT.

41

Technical Department
OSD CE(P&P)

CE (Operation)

ACE (Tech)

ACE (Civil)

SE Tec SE Tech4 SE (P&P)

SE Tech 1 SE Tech 2

SE (Civil ) OSD (Security )

Manager (CC) EE (TU )

4.3Functions of Technical Department

? ? ? ?

Power Supply & Maintenance. Releasing new Connections. Addition & Alternation in Existing Connections. Vigilance Activities.

42

? ?

Implement Government Schemes. Handling Consumers Grievances.

4.4 DETAIL OF REVENUE FROM DIFFERENT CONSUMER SEGMENTS

HT Industrial LT Industril residential Commercial Street Light Water works Agricultural Railway Others

? ?

Revenue from HT Industrial category is highest. Company should to pay more attention in retaining these consumers when private players are in future. Residential consumers are the highest segment of consumers but revenue from these consumer is fourth. These consumers are spread all over in jurisdiction of company in rural as well in towns also in farms. When there will be steep competition in future against private players in market possibility of these consumers remaining with company is more.

?

LT Industrial consumers are third in giving revenue to company.

43

?

Agriculture revenue is second large but margin over purchase cost is least which shown here after.

4.5

STANDARD OF PERFORMANCE

Item/Activity
1 Residential/Commercial- Issued of Demand notes

Time limit
Within 7 days of receipt of applications

2

Industrial Connection- Issued of Demand notes

Within 10 days of receipt of applications

3

HT Connection - Issued of Demand notes

Within 15 days of receipt of applications

4

EHT Connection - Issued of Demand notes

Within 30 days of receipt of applications

To release the connection
1 2 3 4 5 6 7 8 For Residential/Commercial- A Category For Residential/Commercial- Other than A Category For Residential/Commercial- Other than A Category Industrial Connection – A type Industrial Connection – Other than A Category HT Consumers EHT Consumers Agriculture Connection ? ? Where distribution system exists. New distribution system is to be laid 30 days Within 120 days 20 days 2 Months-Urban Area 4 Months-Rural Area 20 days 60 days 45 days 180 days

44

4.6 PROCESSINTERACTION CORPORATE OFFICE

Technical

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

Monitoring of Power Supply & Availability (P) (_ GETCO) Receipt of Power From Transmission Company Matching the Demand & Supply Forecasting & Load Management Power Distribution to the Customers Technical Sanction of New Connections, Additional Contract Demand/ Load, UG System & Line Shfting as per DOP (P) (__ CO) Estimation of Transformer Capacity & Voltage Regulation Cost Estimation & Verification System Improvement Scheme (P) (__ CO) Sanctioning of New Feeder/ Transformer Site Development (_ Energy Department.) Daily Power Supply Monitoring (_ CO,DO,SDO) Material Planning & Distribution (P) (_ CO) Weekly Stock Updating Collection of New Work/ Scheme Material Requirement Maintenance Directives (P) (_ MIS,SDO) (_ CO) Vehicle & Transportation Management (P) (__ CO, DO) Ready Material Inspection at Supplier Site & Material Dispatch Instruction(Purchase Policy)

45

4.7LOSS REDUCTION ACTIVITIES

Company purchases power from the Gujarat Electricity Transmission Company Ltd. That is the input to the company. Company sales power to its consumer. By that way it charges consumers at per their category and tariff prevailing at the time. Consumer pays to company and company has resource to utilize. Any gap between energy purchased and sold is the direct losses to company. Due to transmission of electricity from one end to another end there will be line losses. It will depend on the voltage level, current passing through the line, type of conductor material and its size, temperature etc. Other losses will be pilferage of energy by consumers and non consumers. So a close vigilance is necessary to watch and ward energy. If vigilance activities are not there or are poor losses will increase. To reduce losses company has taken many steps. Some are narrated here. Figures comparison clears the reduction in losses. Company also issues bills to its consumers and consumers pay the bills. If the amount billed (assessed) is less due to any mistake company will lose revenue. Consumer is billed but does not pay than also company will lose revenue. Revenue Loss due to not recovery of amount is also a commercial loss to the company. For that purpose up to date disconnection and reconnection procedure is required. Both technical and commercial losses forms aggregate technical ant commercial (AT&C) losses. To keep the losses at best below the possible level is the prime requirement to its existence.

-: LOSS REDUCTION ACTIVITIES:Year

46

Activity Name Meter Replacement Providing MMB I-O Providing MMB 3-O Feeder Bifurcation Amorphous Transformer Installation Checking(nos.) Detection(nos.) Assessment Rs.in lacs Realization Rs.in lacs

2005-06 267639 238265 6269 123 2127 590180 22540 1938.33 684.17

2006-07 179997 159910 10133 249 3795 637032 21390 2010.55 774.06

2007-08 181112 198528 10594 142 4559 618357 12196 984.49 598.73

Now going in detail about each activity.

(A)

Meter Replacement:-Good quality meter developed with latest art of technology provides accurate measurement of energy used. Old analog meters require a certain driving force to rotate the disc. Due to friction and eddy current effect they were inaccurate to measure energy when working below their low current ranges. Now days with latest technology meters are designed with magnetic bearing and special split design are responding even on switching on mobile charger. Company has purchased and replaced single phase energy meters in lacs of numbers. Mass meter replacement programmers are carried out. And a good result has been observed in the form of reduction of losses. The data of losses on various categories of feeders are shown later on.

(B)

Three Phase Meter Replacement:-Same Way Company has replaced three phase meters. Good quality digital static meters are installed. As in static meters there are no rotating part there is no friction loss. Also eddy current effects are no more. Company has also replaced this type of meters in thousands of numbers. Three phase meters are installed on highly loaded consumers specially industrial and agricultural. Industrial and GIDC feeder losses has come down.

(C)

Providing MMB: - Mattel Meter Boxes are installed at the consumer end. Meter is kept within these boxes. The MMB are sealed. The possibility of theft reduces. Thus the installations are made pilfer proof. Through the glass window meter reading is done. 47

(D)

Feeder Bifurcation:-Feeders are erected right from sub station end to consumer end to feed power to consumer. The load flowing through the feeder will depend on the load connected on that feeder. So more load connected on a feeder more ampere load will passing through the line conductor. With feeder bifurcation load is divided in two or more feeders. So load in feeder will come down. The line losses are proportionate to square of load-ampere passing through the line. So here line losses will be reduced one fourth if current passing through is reduced to half.

(E)

Amorphous Transformer:-These are the distribution transformers made of special material core laminates. Core laminates are made from the material which is cooled so fast no time is allowed to its molecules to gain orientation. This material has least static (eddy current) losses. Also it operates on full efficiency at @ 58%load. As peak loads are established for lesser time period of the day and also due to seasonal fluctuation of load. This design best fits for load reduction. Number of transformers specially supplying residential, commercial and scattered industrial load are replaced with this type of transformers to reduce technical losses. Those are replaced in urban and rural areas where load fluctuation is more and continuous.

(F)

Installation Checking:-In every society there will be unsocial elements. Power theft is not a new all over the world. Curbing theft is really a headache job. There may be head strong peoples. There may be localities of certain nature will involve in theft naturally. In Gujarat also these type power theft activities are there specially in rural areas. To curb theft raids-installation checking are carried out. It is also done in odd hours like in early morning or in night hours. Over the years lacs of connections are checked. Detection of theft or malpractice over the years shows decreasing trend. It proves company has success in curbing theft. Booking in theft and conviction in court gives good signals to theft indulging elements. Assessment of theft amount has also reduced over the period. Amount realization against theft cases is important. After booking case with passage of time court results may not be in favor. Graphical presentation of installation checking will give a good clear picture.

48

Detail of Installation Checking
250000 200000 150000 100000 50000 0
Detected cases No. of Connection checked

Assessed amount

1st Qtr 2nd Qtr 3rd Qtr

Amount Realized

4.8TRANSFORMER FAILURE

Transformers are the main part of electrical network. Different capacity transformers are installed in field to distribute the power to consumer end. The cost of transformer is high. So due care is required on maintenance of transformers. Even if a transformer failure occurs its costs lots. First of all power supply to consumers is affected losing revenue and increasing customer grievances. Second thing work force requires to divert for replacement of faulty transformer affecting other work. Third it incurs cost on repairing of failed distribution transformer. If damage is more than repairing cost will go high and bitterly it is not repaired and declared scrape. Transformer failure in percentage is given below graph. Total population of transformers as on 2007-08 is 111415nos.

49

Transformer Failure Rate (%)
20
Failure in %

15.22 15 10 5

14.75

12.62

Failure in %

0
2005-06 2006-07
Year

2007-08

So for a transformer failure rate of 12.62% for population 111415 it works out 14060nos.Repairing cost for these number may work out crores of rupees. By better maintenance company can reduce expenditure and gain other relevant benefits as already described.

4.9 RELIABILITY OF POWER

Consumer power reliability plays major role in development of industry and related fields. When ever there is power failure for a moment due to any obstruction it is called Transient Tripping of line in short TT. Due to high TT index there will be frequent power failures for short duration (generally less than 5 minutes).Continuous Process industries and agricultural high load motors will be highly affected. More TT can damage electrical appliances. TT rate per 100km of HT line for the company is presented graphically along with SF(sustained fault) figures. SF are the power failure for long durations. Due none maintaining the lines and transformers and rear construction standard are responsible for high SF indexes. Indexes are rate of SF per 100km of HT line length. Lower TT and SF index presents good quality of power supply service to consumers and higher sale. 50

Generally loose over head wire spans, tilted poles, tree branches touching line are responsible for higher TT index. Poor (loose) jumpering, deteriorated conductor, lower construction standard and transformer failure are responsible for higher SF index.

Detail showing TT & SF inexes
40 TT or SF(per 100km) 30 20 10 0 2005-06 2006-07 2007-08 5.78 5.93 4.85 38.11 39.3 38.49

Year
TT SF

-: TECHNICAL LOSSES:-

Company is a utility industry and its main business is distribution of electricity and to provide ancillary services to the main activity. The difference between Purchased units of electricity and sold units is a clear loss to the company. So company cares more to bring down the gap. Ideal gap will be only the technical line losses. Here the losses for the year 2005 06 to 2007-08 are presented graphically. Rise in purchased unit is 11985-12130=()145MU i.e.(-)1.29% during the year 2006-07 compare to 2005-06.rise in sales for the above period is 9590-8857=733MU i.e.8.27% which shows rise in sales but decrease in purchase reducing the losses gap at 2395-3273=(-)878MU which shows really a good improvement in loss reduction. Losses were 26.98% during 2005-06 which reduced to 19.98% during 2006-07 i.e.7.0% reduction in losses is a best achievement.

51

But during the year 2007-08 purchased units rise is 13001-11985=1016MU i.e.8.47% and sale rise is 10240-9590=650MU i.e. 6.77% compared to year 006-07. Losses rise went up 2761-2395=366MU in 2007-08 compared to 2006-07.Here losses has increased but over all losses as in 2005-06 were 26.98% came down to 21.24% in 2007-08.Company requires more attention on loss reduction activities.

52

Chapter -05
FINANCE DEPARTMENT

53

5.1 INTRODUCTION

Finance department undertakes the task of raising financial resource and their utilization. Their task is to be accomplished effectively, efficiently and purposefully. This particular aspect makes entire business activities feasible. We need finance for the purchase power and provide services as well as distribution. The efficiency of purchasing and marking operation is directly influenced by the manner in which finance function of the enterprise is performed by the manner in finance personnel.

5.2STUCTURE OF FINANCE DEPT.

Finance Department

GM (Finance)

CFM

COA

Dy CAO

Dy CAO

54

5.3 Functions of Finance Department

• • • • • • • •

Evaluation of Tender. Audit of Purchase Order. Passing of Bill Payment. Maintenance or Cash Book. Preparation of Trial Balance. Payment of Taxes. Passing of Consumer Order & Payment. Payment of Advances.

5.4

Ratio Analysis

Financial ratios provide the analysis with a means for making meaningful comparison of a firm’s financial data over time and with other firms. Thus financial ratios represent an attempt to standardize financial information in order to facilitate meaningful comparisons. Financial ratios help us identify some of the financial strengths and weaknesses of a company and help us compare the firm’s performance to similar firms in the industry. Ratios are answer to many questions. Financial ratios can be divided into five basic categories. These categories consists of liquidity ratios, efficiency ratios, leverage ratios, profitability ratios and market value ratios.

55

5.4.1

LIQUIDITY RATIOS:-

Liquidity ratios are used to measure the ability of a firm to meet its short term financial obligations. Two ratios are widely used as indicators of the company’s ability to pay its short term obligations: a)Current Ratio and b)Acid Test ratio.

(A) CURRENT RATIO:-

Current ratio is the most used short term liquidity measure of the company. Traditionnorm 2:1 varies according to the industry. Current ratio is defined as,

Current Assets Current Ratio = ______________

Current Liabilities

=552.57 (2005-06) 518.73

854.84(2006-07) 781.92

897.43(2007-08) 906.38

=1.07(05-06)

=1.09(06-07)

=0.99(07-08)

Company has maintained current ratio near to unity. Meaning of it is company holds current assets just equal to its current obligations in form of current liabilities. Higher the current ratio higher the liquidity of the firm. Consistency in maintaining current ratio over period of three years is noticeable. In Current assets inventories has gone up. Sundry debtors has increased. Increase in Public Water Works which supplied power either at free of cost (in rural area) or at subsidized rates. These consumers are to supply drinking water. And as a Government policy disconnection and recovery of arrears is a

56

hard matter. Also company has invested more in form of deposits Rs.2545/-lacs against Rs.197/- lacs in past. Liquidity include against expenditure already made, capital supplies & works employee encashment and tax payables (various taxes)

(B) ACID TEST RATIO:-

Acid Test ratio also known as quick ratio is a measure of short term liquidity of the firm. It is calculated as,

Current Assets-Inventories Acid Test ratio= Current Liabilities

=552.57-88.09(05-06)854.84-103.3(06-07)897.43-174.71(07-08) 518.73 = 464.48751.54 722.72 518.73 = 0.895 781.92 = 0.96 906.38 = 0.79 781.92 906.38

Higher the quick ratio higher the liquidity for the firm. Tradition norm 1:1,varies according to the industry. Inventories are deleted from the current assets to get the acid test ratio because inventories are generally the least liquid of a firm’s current assets. The liquidity ratio is based on the assumption that stocks will not be converted into cash quickly enough to meet the time scale for the payment of the creditors and the business must therefore look to its debtors and cash balance to cover the current liabilities. As company has to maintain a large stock of inventories to look after the capital as well maintenance activities the deduction of inventories form current assets has effected showing the acid test ratio is less than current ratio. It quite near to 0.8.As cost of inventories go up over years ratio has fallen from 0.895 in 2005-06 to 0.79 in 2007-08.

57

5.4.2

EFFICIENCY RATIOS:-

Efficiency ratio provides the basis for assessing how effectively the firm is using its resources to generate sales.

(A)

Receivables Turn Over ratio:-

Receivables turn over ratio indicates in how quickly receivables are collected from the consumers. It is calculated as,

Annual Credit Sale Receivables Turn Over Ratio= Sundry Debtors

=1920.96(05-06) 350.48

2241.15(06-07) 355.17

2556.63(07-08) 431.77

= 5.48

= 6.31

= 5.92

As company sales electricity to its consumers. Consumers are billed generally bimonthly. So all the sale is credit sale.Sale has increased over the period. Amount on sundry debtors has also gone up. It is due to receivables with Water Works consumers (131.23crores) and also provision for unbilled amount. Also amount includes disconnected consumers. Water Works connection being for providing drinking water to public as a Government policy can not be disconnected .So amount in the form of arrears piles up. So far company has maintained the ratio near to six.

58

(B) AVERAGE COLLECTION PERIOD:-

The average collection period ratio indicates how rapidly a firm’s accounts are b eing collected from its customers. Average collection period is defined as,

Debtors x 365 Average Collection period= Credit sales

=350.48 x 365 (05-06) 355.17 x 365(06-07) 431.77 x 365(07-08) 1920.96 2241.15 2556.63

=66.59

=57.84

=61.64

Company’s belling cycle is bimonthly. Collection period coincides with it. Collection period in 2005-06 was 66.59days.Which reduced to 57.84 days in 2006-07.But it has increased in 2007-08 to 61.64days.Company requires more attention to bring down the collection period.60 days collection period will be the ideal one. By best managing metering, billing and collection process company can achieve it. Some latest development in this field like deployment automatic billing and other IT technology can be helpful. Automation in these processes can also improve efficiency with reducing manual errors. It can also lead to better consumer services as like on line bill payment, any time collection kiosks etc.Instead of going to Company’s office consumer should be provided facility to do all the interaction with company from any where. For this web based activities requires to be introduced.

(C) INVENTORY TURN OVER RATIO:-

Inventory turn over ratio shows how effectively the inventories are used to convert them in cash. Higher the turn over higher the efficiency of the firm. It is defined as, 59

Cost of Good Sold Inventory Turn Over Ratio=Average Inventories

ITOR=2217.35(05-06) 8807

2501.90(06-07) 10330

2930.86(07=08) 17471.23

=0.25

=0.24

=0.167

Inventories Turn Over ratio shows a declined trend. Cost of good sold has gone up. In the same k\line cost of inventories has also gone up. Due to rise in inventory cost the effect is in decline of ratio. Company has to carry out many capital works. Also the working area is scattered in vast area. So exact requirement mapping is a tough job. Also the period of finishing of the project is large, large amount in the form of inventory remains blocked. But with help of IT technology requirement can be mapped more efficiently. Using JIT (Just In Time) technique inventories can be managed more efficiently. It can be planned for 20% more costly items (costing around 80%).

(D) FIXED ASSET TURNOVER RATIO:-

The fixed assets turn over ratio is used to measure the efficiency with which the firm utilizes its investment in fixes assets. This ratio is calculated as.

Sales Fixed Assets Turnover Ratio= Net Fixed Assets

=1920.96(05-06) 1321.86

=2241.15(06-07) 1458.46

=2556.63(07-08) 1618.22

=1.45

=1.54

=1. 60

Here we can notice increase of sale consistently over the period. Investment in net fixed asset has also gone up. Fixed assets consists mainly line and cable network. Transformer and machinery is also the part of it. Buildings and land also contribute to fixed asset. Company has invested more on these assets as seen from the fixed assets schedule. Thus the amount received from Government and other bodies like ADB (Asian Development Bank) has highly invested in creation of electrical network infrastructure. This shows positive sign for future growth and expansion.

(E) TOTAL ASSET TURN OVER RATIO:-

Total Asset Turn Over ratio indicates how many rupees in sales the firm generates for each dollar it has invested. This ratio is calculated as,

Sales Total Asset Turn Over=Total asserts

=1920.96(05-06) 1586.66 = 1.21

2241.15(06-07) 1798.96 = 1.25

2556.63(07-08) 2043.25 =1.25

Although fixed asset turn over ratio has increased but up total asset turn over ratio remained constant at 1.25.This means that company has maintained its other assets(including current assets) quite well. Fixed asset has increased from 1458.46cr in 2006-07 to 1618.22cr in 2007-08.Current assets also increased from 854.84cr in 2006-07 to 897.43cr in 2007-08.

61

5.4.3 LEVERAGE RATIOS:-

Leverage ratios are used to measure the extent to which non owner supplied funds have been used to finance a firm’s assets. Leverage ratios can be categorized as being either balance sheet ratios or coverage ratios. Balance sheet leverage ratios measure the proportion of the firm’s asserts financed with non owner funds.

(A) DEBT RATIO:-

The long term debt to total capitalization ratio measures the relative importance of long term debt in the firm’s capitalization. The debt ratio is equal to,

Long Term Debt Debt Ratio= Total Capitalization

=1357.35(05-06) 538.21 = 2.52

=1531.38(06-07) 682.51 = 2.24

=1609.27(07-08) 713.28 = 2.26

Here the ratio has gone down. It signifies the fact that company has reduced its debt financing in the overall financing mix. This is due to increase of assets over period and also relative increase in total capitalization has gone up.

62

(B) Debt Equity Ratio:-

The ratio of debt in relation to total equity indicates relative size of the debt as compared to total equity of the firm. It is calculated as,

Debt Debt Equity Ratio=Equity

=1876.08(05-06) 44363.6

= 2313.3(06-07) 44363.6

= 2515.65(07-08) 44363.6

=0.042

=0.052

=0.056

Here in case of UGVCL equity remained constant over the years. Company has to rely on debt fund to meet its capital requirements. Debt requirement has gone up over period and has effect on debt equity ratio, it also gone up in line of debt. This ratio is most widely used ratios to look at the leverage position of the company.

(C) Times Interest Earned Ratio:Times Interest Earned Ratio is used to measure a firm’s ability to cover the finance charges associated with its use of financial leverage. The times interest earned ratio is one of the popular converge ratios ant tells us whether the operating profit is sufficient to cover the interest liabilities for that year. It is calculated as,

Times Interest Earned =Profitbefore Interest, Tax and Depreciation Interest Payable

= 9.46(05-06) 116.35

= 14.97(06-07) 105.56

= 8.53(07-08) 89.72 63

= 0.081

=0.14

=0.095

Here the PBIT has fall over period. Interest payable amount has went down over the period. So ratio has remained near to 0.1. Decease in profit is higher allocation for depreciation. Company has earned 10% of interest payable.

5.4.4PROFITABILITY RATIOS:-

Profitability ratios serve as overall measure of the effectiveness of the firm’s management. These ratios can be divided into those that measure profitability in relation to sales and those that measure profitability in relation to investment. Profitability in relation to sales ratios reflects the ability of the firm’s management to control the various expenses involved in generating sales.

(A)OPERTING PROFIT MARGINS:-

The operating and net profit margin serves as an over all measure of operating effectiveness of the company. Operating profit margin ratio is calculated as,

Operating Profit Operating Profit Margin= Sales

=9.46(05-06) 1920.96

=14.97(06-07) 2241.15

=8.53(07-08) 2556.63

=0.49

=0.66

=0.33

64

Here income from sale of power to consumers has inceased.In same line expenditure has gone up. It is due to rise of price of coal and railway freight.85% production of power is on coal based. Other account as per profit and loss account remained same or has decreased. Provision for depreciation has increased from 67.70cr. in 2005-06 to 89.27cr in 2007-08.It would be noticeable to note company has maintained positive surplus over the years.

(B) NET PROFIT MARGIN RATIO:Net Profit Margin Ratio is calculated as,

Net Profit Net Profit Margin= Sales =17.18(06-07) 2241.15 = 0.77% =0.86(07-08) 2556.63 = 0.033%

=1.56(05-06) 1920.96 = 0.08%

Net Profit Margin has decreased. Reason behind it is profit has decreased. Sales show increased trend. Higher allocation of fund for depreciation is also a reason for fall of net profit margin.

(C) RETURN ON INVESTMENT:Return on investment tells us about the overall profitability of the company in relation to the total investment in the company. It is calculated as,

Return on Investment= Total Investment

PBIT

65

= 125.81(05-06) 1357.35

=120.53(06-07) 1531.38

=98.25(07-08) 1609.27

= 0.093

= 0.079

= 0.061

Return on Investment has fallen. Equity capital is same but loan-debt has gone up. Due to increased expenditure over period profit has fallen. Investment has gone up. Reserve and surplus has increased. Profit decreased. Interest payable has considerably reduced. Reason behind it is cheap loans from Government and other bodies kike it.

(D) EPS:EPS (Earning per share) ratio indicates the return per share issued by the company. It is calculated as,

Net Profit_ EPS= Nos of shares

= 1.56(05-06) 50070

= 17.18(06-07) 50070

= 0.86(07-08) 50070

= 0.003

= 0.034

= 0.02

Sales has increased, other revenue has increased but profit has decreased. Equity has remained same over years. Interest payable has decreased. But EPS has shown no improvement. Because expenditure on purchase of power has increased. Other expenses like repair and maintenance expense has also increased. Except those other expenses has not increased. Thus due to rise in input value EPS has decreased over years.

66

5.5 LOAD MANAGEMENT

One of the major achievement of UGVCL is reschedule the power supply schedule. Also incentives has been declared on use of energy during not peak hours i.e. during night ours when demand on commercial and residential is at almost low. The graph showing the detail of demand which was fluctuating in past is so arranged it is almost flat. The objective of bringing down the gap between demand and supply is almost achieved. The peak demand was 2100MW and lowest 900MWon 26 Dec.2006 in past is now 1850MW and 1450MW respectively on 15 Dec.2007.

2500 2000 1500 1000 500 0

5

5

5

5

LOAD OF DT. 26-12-2005 LOAD OF DT.15-12-2005

As seen from the above gap was between 2100MW and 900MW i.e.1200MW which reduced to 1850MW peak to 1450MW lowest met i.e.400MW.Gap reduction from 1200MW to 400MW is nothing but additional 1200-400=800MW load has been cattered with arranging loads of agriculture indifferent time period of the day.

10 5 :1 5 12 :1 14 5 :1 5 16 :1 18 5 :1 5 20 :1 22 5 :1 5
67

0: 1

2: 1

4: 1

6: 1

8: 1

5.6 Income

UGVCL is in the electricity distribution business .It supplies power in the north Gujarat. Area covers urban ,rural, tribal and runn of Kuchcha. Different types of consumers are supplied power. Rates are controlled by Gujarat Electricity Regulatory Corporation. But sales has shown consistent growth considerably at the rate of 320.19crores (16.67%) and 315.48 crores (14.07%) in the year 2006-07 and 2007-08 over their previous years respectively. But compare to 2007-08 growth has come down than the previous year. Sales were Rs.1920.96 crores in 2005-06, Rs. 2241.15 in 2006-07 and Rs.2556.63 in 2007-08.Rise in sales is Rs.320.19 i.e.16.67%more compare to that of previous year 00506.Sales rise is Rs.315.48cr i.e.14.08% during the year 2007-08 compare to previous year 006-07. Subsidies remained at almost constant during the period which is beared by state government. Amount of subsidies is Rs.577.84 in 2007-08.Government provides subsidies to help weaker section specially agriculture at the subsidized rate. Other income has shown growth over period which shows company has better options to utilize its resources. Other income has shown good increase from Rs.70.06cr in 2005-06, Rs.160.46 crore in 2006-07 and Rs.227.32 in the year 2007-08.Main part of this income is APDRP scheme incentives from Government (Rs.84.86cr in 2007-08).

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Rise in Sales

350 300 250 200 150 100 50 0 2006-07
Year

Rs. in crores

Sales Increase in Rs.cr Sales Increase in%

2007-08

5.7 EXPENDITURE

Against growth in sales expenditure also increased. Expenditure incurred on purchase of power has increased from Rs.2217.35cr in 2005-06 to Rs.2501.9 in 2006-07 to 2930.86cr in 2007-08.Expenditure rise is Rs.402.18cr i.e.15.72% during the year 2006-07 compare to previous year 205-06.Same it went Rs.393.34cr i.e.13.28% up during 2007-08 compare to previous year 006-07. Repair and maintenance expenditure has also raised to Rs.75.86cr in 2007-08.Employee cost has decreased from Rs.241.00in 2006-07 to Rs.187.20cr in 2007-08.Interest has decreased, depreciation allocation has increased. Thus expenditure mix contains above different categories. Main reason for increase in expenditure is rise on input cost. Which is mainly due to rise in coal cost over the years. 69

Also railway freight for coal transport has increased over the years. Also repair and maintenance expenditure has increased. As investment on capital has increased maintenance expenditure also rises. Also to strengthen existing network more expenditure is incurred. Renovation of existing network increase infrastructure facility and will also reduce technical line and distribution transformer losses, less power failure and increased reliablility,better consumer services and more sales. Employee cost has decreased during 2007-08. Company has under taken many bulk projects for this purpose like conversion of low voltage to high voltage distribution, replacement of existing transformer with latest designed ones etc.

Comparision of Total expenditure & Expenditure on purchase of Power
4000 3500 3000 2500 2000 1500 1000 500 0 2005-06 2006-07 2007-08
year

Total Expenditure

Expenditure in Rs.cr.

Expenditure on purchase of Power

5.8 COMPARISION OF INPUT AND SALES VALUE OF POWER

Power purchase has been increasedtomeetthe increase in demand(sales).Comparison of power purchase rise with sales rise done here under Rise in Purchase = (11985-12130) 06-07 12130 = (13001-11985) 07-08 11985 70

= (-) 1.19

= 8.47

Sales Rise = (9530-857) 06-07 8857 9590

= (10240-9590)

07-08

= 8.27

= 6.77

Here comparison clearly shows during the year 2006-07 increase on power purchase was (-) 1.19 times less than previous year but rise in sales was 8.27 times more which clears the performance. During the year 2007-08 rise in power purchase is 8.47times more compare to previous year and rise in sales is 6.77 times compare to it during year 200708.Which shows a gap between purchase and sales rise. Graphical presentation will clear matters bitterly.

Power Purchase & Sales Comparision
3000 2500 2000 1500 1000 500 0 -500 2005-06 2006-07 2007-08
Power Purchase Power sales Rise in Purchase Rise in Sales

5.9 COMPARISION OF MARGINAL COST PER UNIT
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Amount spent on purchase of power was 2217.35, 2501.90 and 2930.86crores rupees during the year 2005-06,2006-07 and 2007-08 respectively. Revenue from sale of power remained at 1920.96, 2241.15 and 2556.63crore rupees during the above corresponding years. Total units purchased were 12130, 11985 and 13001MU and total unit sold were 8857, 9590 and 10240MU respectively for the year 2005-6, 2006-07 and 2007-08.On the bases of the above raw data one interesting thing we can note here is that, Sales Realization value for one unit works out Rs.2.82, 2.93 and 3.06 for the year 2005-06, 2006-07 and 207-08 respectively and for the same period Purchase Cost per unit works out Rs.1.83, 2.09 and 2.25 respectively. The mater can be understood clearly presenting it graphically.

Marginal Cost Per Unit
4 Cost in Rs. per Unit 2 0 2005- 2006- 200706 07 08 Year

Sales Realization Purchase Cost Marginal Cost

Marginal cost fort the above Purchase Cost and Sales Realization works out Rs.0.99,0.84 and 0.81 respectively for the years 2005-06,2006-07 and 007-08.As the marginal cost is positive by expanding sales there are ample chances of raising the profit of company. Sales enhance will bring down per unit overhead cost.

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5.10 CATEGORY WISE REALIZATION

In following table detail of category wise consumption in MU is given.

Consumer Category MUs Sold

F.Y. 2006-07 Revenue (Rs. in lacs) Average Rate (Rs./Unit) 2.79 4.93 4.59 936 296 620 MUs Sold

F.Y. 2007-08 Revenue (Rs. in lacs) Average Rate (Rs./Unit) 26805.57 14648.48 29012.24 2.86 4.95 4.68

Residential Commercial Industrial LT Industrial HT Public Lighting Water Works Agriculture Railway Micelle neous Total

828 247 589

23101.09 12183.95 27006.84

1810

83722.87

4.63

2127

100279.93

4.71

32

1101.26

3.44

34

1200.54

3.53

366

9622.50

2.63

376

10317.02

2.74

5700 11 7

59667.27 603.64 7107.97

1.05 5.49

5837 11 3

65758.53 622.19 7018.68

1.13 5.66

9590

224115.39

2.34

10240

255663.18

2.50 73

From the tablewe can see that the residential consumer segment is highest i.e.1569817 which forms 77.6% of total 2023036 numbers of consumers. But revenue from this segment is Rs.26805.57lacs which forms 10.5% of total income of sale. On the other side HT/LT industrial consumers are 29276 i.e. less than 1.5% but revenue from this consumer segment is Rs.129292.17lacs which is 50.6% of total revenue. Thus here we see the law of 20:80 i.e. 20% consumers gives 80% sales revenue true in this company. On the other side agriculture consumers are 207517nos.Revenue from that segment is Rs.65758.53lacs.Consumer are 10.3% and revenue is 25.72%.But consumption pattern is totally contradictory for this category. Total 207577 consumer i.e.10.3% consumes 5837MUs i.e.57%energy is consumed by this sector. Energy sold to HT/LT Industrial consumers is 2747MUs which is 26.8% of total sale units. MUS sold to Railway are only 0.1% of total MUS sold and revenue from railway is 0.24% of total sale. So form the above table it is obvious that return from sale to Railway is highest i.e.Rs.5.66 per unit sold to it. Second highest return giving consumer segment is commercial category giving Rs.4.95 per unit. Than comes the Industrial HT with Rs.4.71per unit and LT Industrial with Rs.4.68per unit. From the view point of marginal revenue these consumer segments are the most important for the company. But business of company is not profit oriented. Even at the lowest return of Rs.1.13 per unit company is obliged to supply power to agriculture segment mostly scattered in rural and scattered area in farms. Water works consumers are to lift water from ground and supply to people residents. In rural area electricity to these consumers is supplied free of cost. The cost of power supplied to these categories is borned by Government. Also the power is supplied to agricultural segment is at the subsidized rate. Government bears the subsidized amount. Amount of Agricultural Subsidy is Rs.57658.81lacs during the year 2007-08. It duty of the Government to up lift the weaker section of the society. As this unorganized sector provides highest number of jobs to rural dwellers and helps prevent rural migration to urban.

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SUGESTIONS

On the bases of what we have studied so far following suggestions can be made. Inventory turn over ratio is declining. So cost on inventory hold has increased. Company should carry out options to optimize inventory level. Operating profit margin has declined. Sales have increased. So rise in sales is due to rise in customer base or eighther? Net profit margin has also declined. Reason behind it can be as in case of operating profit margin decline. Return on investment has declined. There is rise in investment but return has short fall in its proportionate. EPS has declined. Equity being remained same.

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Same way sales has shown growth over the years. But also year after year consumers got added and consumer base increases. So it should be worked out how much sale has been increased due to measures taken to reduce losses. Technical and Distribution (T&D) losses has increased during 2007-08.Installation checking process has remained in decreased revenue realization from installation checking. Effective vigilance is necessary. Expenditure has increased. It is due to more spent on purchase of energy. Purchase cost is rising. That is due to rise in coal cost and freight charges. Other alternative source of coal like import from abroad should be thought.

Marginal cost of unit sold is positive. So exploitation of more consumer base will give good return. Return from railway, industrial and commercial consumers is marginally highest. Some schemes can be declared for these categories of consumers and improving service rendered. For reduction of T&D losses some schemes can be declared for those consumer bases consuming highest energy. These can be increasing awareness, replacing tradition appliances with energy efficient ones and giving subsidies on those bases. Some special schemes for debtors can increase held up revenue.

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CONCLUSION

Hon’ble P.M. of India Shri Dr. Manmohansing has expressed great concern over accumulated huge losses by state electricity boards. Government passed Electricity Act.2003and directed state Governments to dismantle electricity boards and adopt reforms to make them efficient in functioning. State Governments spended crores of rupees on subsidies to provide electricity either free of cost or at subsidized rates to agricultural and other sectors instead of adding generation capacity. So consequent was stringent power cuts. To achieve double digit growth rate availability of electricity to run industry for more hours is necessary. So for installing generation requires large amount and also takes gestation period. So by adopting efficient electricity utilization can save it which is equal to adding new generation.

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Gujarat electricity board dismantled and seven companies including four generation companies formed. These companies may compete with one another. Healthy competition will bring down cost and improved services. UGVCL has shouldered these responsibilities. We have narrated here brief activities and its performance. Figures supports that company will definitely grow in future. Company has added consumer base in various sectors. Margin revenue is positive. Sales have increased over years. Cost on input has gone up. Other option to input and its availability requires explored. Any way by bringing input cost down company can perform out right.

APPENDIX

Revenue Collection, Arrears, Assessment
As On 31/03/2009 Revenue Collection (Excluding AEC & With Misc. Rs. in Crores Charges) 2006-07 : 2034.74 2007-08 : 2312.66 2008-09 : 2962.65 Agricultural Collection : Rs. in Crores 2006-07 : 290.44 2007-08 : 287.60 2008-09 : 273.23 Arrears : Rs. in Crores (Feb-09) GWSSB : 7.52 Irrigation : -7.00 Nagarpalika : 135.22

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Total Assessment LT : Rs. in Crores Jan-09 : 105.07 Feb-09 : 144.36 Total : 249.43 Debit Arrears : Rs. in Crores (Feb-09)

Average Assessment : 269.34
Debit Arrears : 27.87 Percentage : 25.23

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80

BIBLIOGRAPHY

? ? ? ? ? ? ?

www.ugvcl.com www.guvnl.com UGVCL Intranet Fifth Annual Report 2007-08 UGVCL Magazines www.gsecl.in www.gercin.org

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