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WELCOME PRESENTATION ON CURRENT CAPACITIES AND WAY FORWARD BY R. VENKATESWARAN REGIONAL EXECUTIVE DIRECTOR(SOUTH) NTPC LTD. Indian Power Sector. August’2014. 29 MARCH 2010. India is the World’s 3 rd largest economy ….
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WELCOME PRESENTATION ON CURRENT CAPACITIES AND WAY FORWARD BY R. VENKATESWARAN REGIONAL EXECUTIVE DIRECTOR(SOUTH) NTPC LTD
Indian Power Sector August’2014 29 MARCH 2010
India is the World’s 3rd largest economy… …but our per capita electricity consumption is amongst the lowest • India among the lowest per capita consumers of electricity globally, lagging China by over 3.6:1 • Per capita consumption 31% of the world average * Provisional Source: World Bank, IEA - Key World Energy Statistics-2014, CEA
Energy demand growth closely linked to GDP growth • Services contribute 60% to GDP (Manufacturing 15%) • Manufacturing share to increase to 25% by 2025 • Manufacturing is power intensive Source: Economic Survey February 2014 and RBI, CMIE
India’s Energy Sector - Structure Planning Commission – The Apex Planning Agency in the country Generation Transmission Distribution Consumption Central Subjects Concurrent Subject State Power Utility State Trans. Utility SEBs Generation End Consumer Power Coal CPSUs CTU Powergrid Discoms • Govt. Coal Companies • Private Captive Coal Producers Transmission IPPs & Private Private Utilities Private Licensees Transmission Oil & Natural Gas • Both Exploration & Production • Govt. • Private Captive Captive Consumer Open Distribution Nuclear Energy Power Trading Companies Govt. Company
Power – the concurrent subject Under the VIIth Schedule of the Indian Constitution, power is in the “concurrent list” CEA Parliament MOP, GOI Central PSEs CERC Centre BEE Legislative function Executive Function Execution Regulatory Function State Assemblies State Govts. SEBs/State Utilities /IPPs/Lic. SERCs States
Power Sector - Policy Initiatives Power sector development can distinctly be divided into ‘four stages’: • Regulatory framework created • SEBs’ unbundling • EA2003 seeks to promote competition, rationalize tariff • Private participation incentivized • For rapid growth, power made concurrent subject • Central utilities viz. NTPC, NHPC created • Worsening SEBs’ condition • Power - state subject • State electricity boards (SEBs) created • SEBs vertically integrated • Slow growth – ~16,500 MW 4,50,000 MW • Sector infancy • In a few cities • Very small capacity – 1365 MW Capacity Stage- 4 1,50,000 MW Stage- 3 15,000 MW Stage- 2 Stage- 1 1900 1948 1975 1998/ 2003 2020 Year
Power Policy Framework Electricity Act 2003: The hallmark of power reforms in India
Power Policy Framework Other Policy Initiatives Ambitious capacity expansion program underway • One time settlement scheme for outstanding dues of CPSUs • National Electricity Policy • Tariff Policy • New Hydro Policy • UMPP Policy • Re-structured - Accelerated Power Development and Reforms Programme (R-APDRP) • Rural Electrification – RGGVY • National Mission for Enhanced Energy Efficiency under National Action Plan for Climate Change
Installed Power Generating Capacity Total Capacity – 250 GW* Source: Central Electricity Authority, As on 30.07.2014 *Excluding Captive Capacity
Installed Power Generating Capacity Total Capacity – 250 GW* ~55 GW added in 11th Plan (2007-12) - Highest ever capacity in any plan since independence All India Generation FY14: ~960 Billion Kwhr Source: Central Electricity Authority, As on 30.07.2014 *Excluding Captive Capacity
Installed Power Generating Capacity Total Renewable Energy based Capacity ~32 GW As on 31.05.2014 Source: MNRE,
Electricity growth outlook in India GWs BUs India faces energy deficit of 4.0% and peak deficit of 3.7% Source: Planning Commission, CEA
Capacity Addition in 12th Plan Total Capacity Planned – 88.5 GW* ~43 GW added in the current plan till 31st July 2014 *Excluding RES capacity of 30 GW Source: 12th Plan Document, Planning Commission, CEA
Power Sector Fund requirement 12th Plan fund requirement in Power Sector – $270 Billion Source: Draft report of 12th Plan Working Group on Power
India’s low carbon growth National Action Plan on Climate Change (NAPCC) • A sub-mission for development of clean coal technologies
NTPC Limited - An Overview
NTPC’s Growth Journey 2010 2013 • Became a Maharatna Company • GOI divested 5% equity • GOI further divested 9.5% equity 43128* Today 20249 1982 1975 1997 2004 11333 NTPC incorporated First 200 MW unit commissioned Became a Navratna Company Listed on Indian Stock Exchanges (GoI holding 89.5%) *Including 95 MW Solar PV
National /Global Ranking The largest Power Generator in India Third largest Power Generator in Asia Tenth largest power generator in the world No.1 IPP in world (Platts-250 ranking–2013) 424thlargest company in the world (FORBES ranking – 2014) Ranked 42nd Best Company to Work For in India (Best among the public sector companies) (The Economic Times and Great Places to Work Institute-2014) Source: Platts, Forbes, International Consultant, CEA, The Economic Times & Great Place to Work Institute Inc.
NTPC Limited Group NTPC 21 Joint Ventures and 4 Subsidiaries For Synergistic Business Diversification
With 18% share in installed capacity, NTPC Group’s contribution in electricity generation is 26% NTPC NTPC GROUP • NTPC’s coal based stations registered a PLF of 81.5% against the national average of 65.5%
Turnaround capability PLF ASIAN POWER PLANT OF THE YEAR AWARD 2006 BY ASIAN POWER MAGAZINE TO FEROZE GANDHI UNCHAHAR TPS Talcher power station has an average life of ~40 years
Project Management Unit Commissioning (Achieving Full Load) Time in Months from investment approval • JICA President’s award for Simhadri project • IPMA award for Dadri Project Stage-II in the year 2011 • IPMA award for Simhadri project in the year 2005. • IPMA award for Vindhyachal project in the year 2008. State-of-the-art Project Monitoring Center
Strong balance sheet (FY14) Total Income Profit After Tax INR Crores INR Crores 12.9% 8.5% Reduced PAT due to exceptional item in FY13 Paid up equity Rs 8245.5 Cr. Net Worth Rs 85,815 Cr. Total Assets Rs. 1,79,554 Cr.
Human Capital Ranked 6th in the Aon Hewitt Best Employers in India 2011. 2014 10% • Talent pool of ~25,000 employees • Power Management Institute (PMI) – Playing a pivotal role in individual and organizational learning. • Training Simulators for 660 MW / 500 MW / 200 MW coal and gas based plants
Our Vision “To be the world’s largest and best power producer, powering India’s growth” 34
Planning for Accelerated Growth 2032 ~ 128 GW Today ~43 GW* Coal Gas Nuclear Hydro Renewables Capacity under construction: ~22 GW * 95MW Solar PV Projects
Sustainable Power Development… Implementing high efficiency technology • NTPC along-with IGCAR & BHEL developing material for Advanced Ultra-Super-Critical Technology Hydro, Renewable & Nuclear Energy forays • 1499 MW hydro capacity under construction • Developing Wind and Solar capacities – 1000 MW by 2017 • AnushaktiVidhyut Nigam Ltd. - JV company formed with NPCIL for nuclear power development - NTPC(49% ) & NPCIL( 51%) 36
Research & Technology Development NTPC Energy Technology Research Alliance Focus Areas Efficiency & Availability Improvement and Cost Reduction Renewables and Alternate Energy Climate Change and Environment • ECBC (Energy Conservation Building Code) compliant building • ISO/NABL 17025 Certified Labs Scientific Support to Stations Intend to invest up to 1% of distributable profit for R&D Activities and Climate Change studies
Tapping Global Business • Sri Lanka • 2x250 MW coal based power project in Trincomalee through a JV Co. with Ceylon Electricity Board. • Bangladesh • 1320 MW Coal Based Power Plant at Khulna being Developed through a 50:50 JV Co. with BPDB on BOO basis • NVVN appointed for supplying Power to Bangladesh
Committed for Inclusive Growth Women Empowerment Providing Health Care Reaching out to the differently-abled Promoting Employability & bridging skill gaps Preserving Heritage
Dun & Bradstreet American Express Corporate Award PLATTS TOP 250 GLOBAL ENERGY COMPANY IEEMA POWER AWARD SCOPE Excellence Award ICSI National Award For Excellence in Corporate Governance Best CFO ICAI AWARD CII - ITC SUSTAINABILITY AWARD Greentech Environment Excellence Award IPMA AWARD Awards and Accolades Consistent Independent Recognition of NTPC’s Excellence ProjectManagement Leading Power Company Corporate Excellence Environment Management Corporate Finance Corporate Governance
NTPC Limited ( A Government of India Enterprise) www.ntpc.co.in