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Management Programme

Production and Operations of SEWA II Power Station


Using Production and Operation Management Functions

PROJECT REPORT
(MS 100)
Submitted to the Co-ordinator (Projects)
School of Management Studies, IGNOU,
Maidan Garhi, New Delhi 110 068
For the partial fulfilment of Degree in

MASTER OF BUSINESS ADMINISTRATION


Supervised by:
Dr. Ajay Kumar Chaudhary
Associate Professor

Submitted by:

Subhash Singh
Enrolment No. 125556971

2016

School of Business Management Studies


Indira Gandhi National Open University
Maidan Garhi, New Delhi 110 068

CERTIFICATE OF ORIGINALITY

This is to certify that the project titled PRODUCTION AND OPERATIONS

OF SEWA II POWER STATION USING PRODUCTION AND


OPERATION MANAGEMENT FUNCTIONS is an original work of the Student
and is being submitted in partial fulfilment for the award of the Masters Degree in Business
Administrations of Indira Gandhi National Open University. This report has not been submitted
earlier either to this University or to any other University/Institution for the fulfilment of the
requirement of a course of study.

SIGNATURE OF SUPERVISOR

SIGNATURE OF STUDENT

(DR. AJAY CHAUDHARY)

(SUBHASH SINGH)

Associate Professor

Place: DHARAMSHALA

Place: DHARAMSHALA

Date: 12/05/2016

Date: 12/05/2016

[i]

ACKNOWLEDGEMENT
Exchange of ideas generates energy and a will to work in a better way. The inception of the project
draws upon the contribution and co-operation of many individuals. Whenever others help a person he is
bound to pay gratitude to them. Acknowledgement is not merely a formality, rather an expression of deep
gratitude. I would like to take this opportunity to express my gratitude towards one and all, those who, in
various ways have helped in the successful completion of my project.
With an overwhelming sense of legitimate pride and genuine obligation which gives me exuberant
pleasure and privilege to express my eternal gratitude of my learned and revered supervisor Dr. Ajay Kumar
Chaudhary for his excellent and praiseworthy guidance, endurance, pertinent criticism, juvenile
encouragement and parental affection during whole course of my study and particularly at times of research
and preparation of this report. As a conscientious supervision, he has saved me from taste of several errors
by his frank and unsparing criticism. I wish to thank him for his consistent moral support and the assistance
he regularly provided me. I shall remain indebted to him.
I really deem it a special privilege to convey my prodigious and everlasting thanks to Coordinator
MBA, Government Post Graduate College, Dharmshala.
My cordial thanks are due to Shri. P.K. Langer, General Manager and Shri Bikram Singh, Chief
Engineer (Incharge), Head of Project of Sewa II Power Station, Mashka (Jammu & Kashmir) for providing
required facilities and valuable suggestions. I owe my grateful thanks to Shri Indradeo Prasad Ranjan,
Senior Manager (Electrical); Shri Krishan Kumar, Senior Manager (Mechanical); Shri M. K. Shah, Senior
Manager (Civil); Shri Lakhmi Chand, Senior Manager (Electrical); Shri Parveen Sharma, Manager
(Mechanical); Shri Anil Kumar Panda, Manager (Finance); Shri Rajendra Dattatraya Shende, Manager
(Electrical); Shri Manoranjan Behera, Manager (HR); Shri N. K. Tandon, Manager (Mechanical); Shri Vijay
Kumar Chadda, Manager (Civil); Shri Ashwani Kumar, Manager (Civil); Shri Om Bir Singh, Manager
(Civil); Shri Gopeshwar Sharma, Manager (Mechanical); Shri Satyam Kumar Jha, Manager (Mechanical);
Shri Hari Ram, Manager (Electrical); Shri Anurag Gupta, Manager (E&C); Shri Dinkar Dinesh Soni,
Manager (Electrical); Shri Vivek Anand, Deputy Manager (Electrical); Shri Pawan Pal Sharma, Deputy
Manager (HR); Shri Davinder Singh, Deputy Manager (Administration); Shri Anil Sood, Executive
Secretary ; Shri

Ajay Kumar Sehrawat, Assistant Manager (Hr); Shri P R Rahi, Assistant Manager

(Electrical); Shri Vinod Kumar, Assistant Manager (Finance); Shri Satish Kumar, Assistant Manager
(Finance); Shri Amrit Lal, Assistant Manager (IT); Shri Ashok Kumar Dhanwal, Deputy Manager(HR);
Shri Raghunath Jhoor, Deputy Manager (PR); Shri Parwin Singh, Officer (HR); Miss Preeti
Diwakar, Engineer (Electrical); Shri Harsh Kumar Tiwari, Engineer (Electrical); Shri Deepak Kumar Singh,
[i]

Engineer (Electrical); Shri Manish Kumar Meena, Engineer (Electrical); Shri S. Tajuddin, Engineer
(Electrical); Shri Jagvir Singh, Engineer (Electrical); Shri Vimlesh Kumar, Trainee Engineer (Mechanical);
Shri Ashok Kumar, Assistant Engineer (Electrical); Shri Amit Kumar Srivastava, Assistant Engineer
(Electrical); Shri Vinod Kumar Bharti, Assistant Engineer (Electrical); Shri Jeetendra Kumar Verma,
Assistant Engineer (Electrical); Shri Nayyar Shahnawaj, Assistant Engineer (Mechanical); Shri Amit
Dhawan, Assistant Engineer (Electrical); Shri Ajay Kumar, Assistant Engineer (E & C) and also, Shri
Nagendra Kumar, Assistant Engineer (Civil) for providing me the necessary facilities to complete this study.
I also, owe a debt of gratitude to various other officials for encouraging me all the time and providing me all
necessary information.
I would also like to thanks and deeply indebted to guides family members, project guides wife
Respected Smt. Malti, lovely kids daughter Miss Ayushi and son Master Harshit for supporting me.
I avail the blessings, affection and moral encouragement of gracious my mother Smt. Chander Kalna
and respected father Shri Roshan Lal for their inspiration in period of mental stress and pleasure of study. I
ever remain indebted to them
Last but not least thanks for my wife Smt. Amit Sonia and to my loving daughter Miss Deevita Singh
and loving son Master Arvind Singh. And at last but not the least I would like to thank Baba Jii Shri
Gurinder Singh for the successful completion of my project.

Place : Dharamshala
Date : 12/05/2016

Subhash Singh

[ii]

PREFACE
As Management is a vital function concerned with all the aspects of enterprise and hence a course in
business administration has become a sort of pre-requisite for a successful career in todays dynamic
business environment. Theories on Management aim at establishing the best way of doing things undyingly,
the situational needs determine their mode of application. Effective Management is always a situational
management. So a student undergoing a postgraduate program in management needs to be exposed to
realities in the field, which puts to test the classroom learning. The title of the project is Production and
Operations of SEWA II Power Station Using Production and Operation Management Functions.
This Project report is an interesting and exciting area for the entire Production and Operational
Managers. One of the most important responsibilities of a Production and Operational Managers deals with
reducing material handling cost, which generally is achieved by the use of efficient material handling system
and also by using plant layouts which must be developed in a proper or correct way for financial benefit of
the firm. The objective of Production and Operational Managers should be to minimizing throughput time
and work in process inventory. This can be achieved by systematic & efficient execution production
planning and also, making most efficient utilization of the available sources for production without impairing
the ability of the firm.
Further, the Production and Operational managers have to reduce the quality cost with the help of
analysis of non conformances on periodic basis and also by following suitable actions (both corrective and
preventive) and forecasting the requirements of the production in order to achieve the production target.
Production and Operational decisions are difficult because markets are generally very competitive
and efficient. This Project report provides comprehensive coverage to both Production and Operational
aspects of Hydro Power Station, as the key areas of mobilizing resources to the corporate for long term. It
contains in a simplified and logical manner, all decision making, procedures and documentation involved in
production and Operation of Hydro Power Plant. Though this report discuss about the practical concept
employed by NHPC, it has tried to correlate the practical procedures with the existing market regulating
guidelines, different Acts and the theoretical concepts studied in different books. This project report provides
full practical knowledge regarding Production and Operational aspects on which Generation of Electricity is
available, procedure for operate the Hydro Generator through SCADA system, compliance with Electricity
Act and the Companies Act, 1956 guidelines and provisions and submission of documents.
The information presented in this Project Report is obtained from sources like Company Personnel,
Company Websites, Other Websites, Company Reports, and Other Literatures. Thus, this report is a
comprehensive work, with lucid and systematic presentation of subject matter, supported with number of
[i]

illustrations for easy understanding. This report provide the comprehensive information on due diligence.
This report is interesting and complete because of the guidance of different dealing officers of NHPC and
my respected, esteemed, active guide Dr. Ajay Kumar Chaudhary, Associate Professor.

Place : Dharamshala

Subhash Singh

Date : 12/05/2016

[ii]

LIST OF ABBREVIATION
ABT

AVAILABILITY BASED TARIFF.

AFC

AUTOMATIC FREQUENCY CONTROL.

BBMB

BHAKHRA BEAS MANAGEMENT BOARD.

BSE

BOMBAY STOCK EXCHANGE.

CBIP

CENTRAL BOARD OF IRRIGATION & POWER.

CCEA

CABINET COMMITTEE ON ECONOMIC AFFAIRS.

CEA

CENTRAL ELECTRICITY AUTHORITY.

COD

COMMERCIAL OPERATION DATE

CPRI

CENTRAL POWER RESEARCH INSTITUTE.

CVPPPL

CHENAB VALLEY POWER PROJECTS PRIVATE LIMITED.

C-WET

CLEAN WIND ENERGY TOWER.

DPR

DETAILED PROJECT REPORT.

EIA

ENVIRONMENT IMPACT ASSESSMENT.

EMP

ENVIRONMENTAL MANAGEMENT PLAN.

EPC

ENGINEERING, PROCUREMENT, CONSTRUCTION.

ERP

ENTERPRISE RESOURCE PLANNING.

FGMIV

FREE GOVERNING MAIN INLET VALVE.

GOI

GOVERNMENT OF INDIA.

GTCB

GENERATOR TRANSFORMER CIRCUIT BREAKER.

HR

HUMAN RESOURCES.

HRT

HEAD RACE TUNNEL.

[i]

HSLS

HYDROSTATIC LUBRICATION SYSTEM.

INMARSAT :

INTERNATIONAL MARITIME SATELLITE.

IPP

INDEPENDENT POWER PRODUCER

IT

INFORMATION TECHNOLOGY

JKSPDC

JAMMU AND KASHMIR STATE POWER DEVELOPMENT


CORPORATION.

JV

JOINT VENTURE.

LDHCL

LOKTAK DOWNSTREAM HYDROELECTRIC CORPORATION


LIMITED.

MEA

MINISTRY OF EXTERNAL AFFAIRS.

MOEF

MINISTRY OF ENVIRONMENT AND FORESTS

MOU

MEMORANDUM OF UNDERSTANDING.

MSEB

MAHARASHTRA STATE ELECTRICITY BOARD.

MU

MILLION UNITS.

NHDC

NARMADA HYDROELECTRIC DEVELOPMENT CORPORATION.

NHPC

NATIONAL HYDROELECTRIC POWER.

NHPTL

NATIONAL HIGH POWER TEST LABORATORY PVT. LTD.

NOCET

NATIONAL OPEN COMPETITION FOR EXECUTIVE TALENT.

NPCI

NUCLEAR POWER CORPORATION OF INDIA.

NPEX

NATIONAL POWER EXCHANGE LIMITED.

NTPC

NATIONAL THERMAL POWER CORPORATION.

O&M

OPERATION & MAINTENANCE.

OHPC LTD. :

ODISHA HYDRO POWER CORPORATION LIMITED.


[ii]

PAF

PLANT AVAILABILITY FACTOR.

PFC LTD.

POWER FINANCE CORPORATION LTD.

PGCI

POWER GRID CORPORATION OF INDIA.

PIB

PRE-PUBLIC INVESTMENT BOARD.

POSOCO

POWER SYSTEM OPERATION CORPORATION LIMITED.

PSU

PUBLIC SECTOR UNDERTAKINGS.

PTC

POWER TRANSMISSION CORPORATION.

R&D

RESEARCH & DEVELOPMENT.

R&R

REHABILITATION AND RESETTLEMEN.

RPM

REVOLUTIONS PER MINUTE.

SAARC

SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION.

SCADA

SUPERVISORY CONTROL AND DATA ACQUISITION

SJVN LTD

SATLUJ JAL VIDYUT NIGAM LIMITED.

SSB

STATION SERVICE BOARD.

TCS

TATA CONSULTANCY SERVICES.

UAB

UNIT AUXILIARY BOARD.

UAT

UNIT AUXILIARY TRANSFORMER.

UI

UNSCHEDULED INTERCHANGE.

VSAT

VERY SMALL APERTURE TERMINAL.

[iii]

TABLE OF CONTENTS
CERTIFICATE OF ORIGINALITY

PREFACE

i - ii

ACKNOWLEDGEMENT
LIST OF ABBREVIATIONS
SYNOPSIS PROJECT PROPOSAL

i - ii
i - iii

Sr. No.
1

CHAPTER TITLE
INTRODUCTION
1.1
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.10
1.2.11
1.2.12
1.2.13
1.3
1.3.1
1.3.2
1.3.3
1.3.4

POWER SECTOR IN INDIA


INTRODUCTION TO NHPC
ABOUT THE NHPC SYSTEM
CORPORATE VISION
CORPORATE MISSION
CORPORATE OBJECTIVES
VALUES
PERFORMANCE HIGHLIGHTS SO FAR DURING 2015 2016
INDUSTRY ANALYSIS
PROFILE OF NHPC
ORGANIZATION STRUCTURE
NHPC: CULTURE
SWOT ANALYSIS
DIVERSIFICATION
EXISTING JOINT VENTURES / SUBSIDIARIES
INTRODUCTION TO SEWA - II HYDRO POWER STATION
SEWA II HYDRO POWER STATION OVERVIEW
SALIENT FEATURES OF SEWA H.E. PROJECT STAGE II
COST & EXPENDITURE DETAILS (SEWA-II) - AT A GLANCE
STAGE PROCESS FOR DEVELOPMENT OF HYDRO ELECTRIC
PROJECTS AND KEY ACTIVITIES IN DIFFERENT STAGES OF
PROJECTS
1.3.5 BUSINESS MODEL OF SEWA II HYDRO POWER STATION
1.3.6 OPERATIONS OF THE BUISNESS
1.3.7 SEWA II POWER STATION LAYOUT

2.

RESEARCH DESIGN
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8

RESEARCH DESIGN
DATA COLLECTION
OBJECTIVES OF THE STUDY
SCOPE OF THE PRESENT STUDY
RESEARCH METHODOLOGY
STATISTICAL TOOLS
LIMITATIONS OF THE STUDY
DIRECTION FOR FURTHER RESEARCH

PAGE
No.
1 - 40
13
38
8
8
89
9 10
10
10 12
12
12 14
15
15
15 17
17
18
19
19 21
21 25
25
26 29

29-30
30 -38
39 40
41 47
41
41
41 42
42
42 46
46
46 47
47

3.

4.

HYDRO POWER USING PRODUCTION AND


OPERATION MANAGEMENT FUNCTIONS

48 75

3.1
OPERATING STRATEGIES
3.2
SUPPLY CHAIN MANAGEMENT
3.3
ISSUES AND CHALLENGES
3.4
REPORTING
3.4.1 DEFINITIONS
3.4.2 DAILY REPORTING
3.4.2.1 DAILY GENERATION AND TRANSMISSION REPORT
3.4.2.2 HOURLY STATION DATA REPORT
3.4.2.3 TRIPPING REPORT
3.4.2.4 UNSCHEDULE INTERCHANGE REPORT
3.4.3 MONTHLY REPORTING
3.4.3.1 GENERATION DATA AT A GLANCE
3.4.3.2 MACHINE AVAILABILITY REPORT
3.4.3.3 OUTAGE DETAILS FOR THE MONTH
3.4.3.4 TRIPPING DETAILS AT A GLANCE
3.4.3.5 DEEMED GENERATION REPORT
3.4.3.6 TARIFF OF HYDRO POWER GENERATING STATIONS
3.4.3.7 SCHEDULING AND GENERATION DESPATCH
3.5
UNSCHEDULED INTERCHANGE (UI) CHARGES
3.5.1 DEFINITIONS
3.5.2 CHARGES FOR DEVIATIONS
3.5.3 Before ABT& UI
3.5.4 BENEFITS ARISING FROM UI IMPLEMENTATION

48
48
48 51
51
52
53
53 56
57 61
62 63
63 65
66
66
67
68
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69 70
71
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74 75
76 79
80 82

CONCLUSIONS / RECOMMENDATIONS
BIBLIOGRAPHY

LIST OF TABLES
Sr. No. TABLE No.

PAGE No.

Table No. 1

0 - 12

Table No. 2

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Table No. 3

0 - 21

Table No. 4

0 29

Table No. 5

0 44

Table No. 6

0 45

Table No. 7

0 60

Table No. 8

0 73

LIST OF FIGURES
Sr. No. TABLE No.

PAGE No.

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Figure No. 1
Figure No. 2
Figure No. 3
Figure No. 4
Figure No. 5
Figure No. 6
Figure No. 7
Figure No. 8
Figure No. 9
Figure No. 10
Figure No. 11
Figure No. 12
Figure No. 13
Figure No. 14
Figure No. 15
Figure No. 16
Figure No. 17
Figure No. 18
Figure No. 19
Figure No. 20
Figure No. 21
Figure No. 22
Figure No. 23
Figure No. 24
Figure No. 25
Figure No. 26
Figure No. 27
Figure No. 28
Figure No. 29
Figure No. 30
Figure No. 31
Figure No. 32
Figure No. 33
Figure No. 34
Figure No. 35
Figure No. 36
[i]

Management Programme
Production and Operations of SEWA II Power Station
Using Production and Operation Management Functions

PROJECT REPORT
(MS 100)
Submitted to the Co-ordinator (Projects)
School of Management Studies, IGNOU,
Maidan Garhi, New Delhi 110 068
For the partial fulfilment of Degree in

MASTER OF BUSINESS ADMINISTRATION


Supervised by:
Dr. Ajay Kumar Chaudhary
Associate Professor

Submitted by:

Subhash Singh
Enrolment No. 125556971

2016

School of Business Management Studies


Indira Gandhi National Open University
Maidan Garhi, New Delhi 110 068

(CHAPTER - 1)
INTRODUCTION

PRODUCTION AND OPERATION OF


SEWAII HYDRO POWER STATION
USING PRODUCTION AND OPERATION
MANAGEMENT FUNCTIONS
CHAPTER -1: INTRODUCTION
1.1 POWER SECTOR IN INDIA:
Power development in India is the key to economic development. The power sector has
been receiving adequate priority ever since the process of planned development in 1950. The
Indian Power Industry is one of the largest and most important industries as it fulfills the energy
requirements of various other industries. It is one of the most critical components of
infrastructure that affects economic growth and the well-being of our nation. Hydro power and
coal based thermal power have been the main sources of generating electricity. Nuclear power
development is at slower pace, which was introduced in late 60s. The concept of operating
power systems on a regional basis crossing the place, the power supply industry have been under
constant pressure to bridge the gap between supply and demand.
Since independence in 1947 Indian Power Sector progress has been rapid. From mere 1713
MW of installed capacity in 1950 the capacity at the end of March 2007 rose to 124569 MW
excluding capacity of renewable energy. Total generation in April 2006-March 2007 was 659419
GWh in the utility sector. The per capita consumption of electricity increased from 15 KWh in
1950 to 619 KWh in 2006-07. It had an installed capacity of 205.34 Gigawatt (GW) as of June
2012, the world's fifth largest. Thermal power plants constitute 65% of the installed capacity,
hydroelectric about 22%, nuclear power 3% and 10% rest being a combination of wind, small
hydro, biomass, waste-to-electricity. India has the world's 5th largest electricity generation
capacity and it is the 4th largest energy consumer accounting for 3.4% of global energy
consumption. Due to the fast-paced growth of the Indian economy, the country's energy demand
has grown at an average of 3.6% p.a. over the past 30 years. However, per capita electricity
consumption remains much lower than the world average and even lower than some of the
developing Asian economies. Investment in the sector has not been able to improve access and
keep pace with the countrys growing demand for electricity. The top four countries, viz., US,
Japan, China and Russia together consume about 49 percent of the total power generated
globally. The average per capita consumption of electricity in India is estimated to be 704 kWh

during 2008-09. However, this is fairly low when compared to that of some of the developed and
emerging nations such US (~15,000 kWh) and China (~1,800 kWh). The world average stands at
2,300 kWh. The Indian government has set ambitious goals in the 11th plan for power sector
owing to which the power sector is poised for significant expansion. 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. This has resulted in
massive addition plans being proposed in the sub-sectors of Generation Transmission and
Distribution.
India is world's 6th largest energy consumer, accounting for 3.4% of global energy
consumption. Due to Indias economic rise, the demand for energy has grown at an average of
3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity
of India stood at 147,000 MW while the per capita power consumption stood at 612 kWh. The
country's annual power production increased from about 190 billion kWh in 1986 to more than
680 billion kWh in 2006. The Indian government has set an ambitious target to add
approximately 78,000 MW of installed generation capacity by 2012. The total demand for
electricity in India is expected to cross 950,000 MW by 2030. About 75% of the electricity
consumed in India is generated by thermal power plants, 21% by hydroelectric power plants and
4% by nuclear power plants. More than 50% of India's commercial energy demand is met
through the country's vast coal reserves. The country has also invested heavily in recent years on
renewable sources of energy such as wind energy. As of 2008, India's installed wind power
generation capacity stood at 9,655 MW. Additionally, India has committed massive amount of
funds for the construction of various nuclear reactors which would generate at least 30,000 MW.
In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power by 2020.
The Power sector in India is predominantly controlled by the Government of India's public
sector undertakings (PSUs). Major PSUs involved in the generation of electricity are National
Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC) and
Nuclear Power Corporation of India (NPCI). Besides PSUs, several state-level corporations, such
as Maharashtra State Electricity Board (MSEB), are also involved in the generation and intrastate distribution of electricity. The Power Grid Corporation of India is responsible for the interstate transmission of electricity and the development of national grid. The Ministry of Power is
the apex body responsible for the generation and development of power in India. This ministry
started functioning independently from 2 July, 1992; earlier, it was known as the Ministry of
Energy. The Government of India has an ambitious mission of power for all by 2022. This
mission would require that the installed generation capacity should be at least 200,000 MW by
2012 from the present level of 1,57,229.48 MW. Power requirement will double by 2020 to
2

400,000MW. The Union Minister of Power at present is Shri Piyush Goyal, who took charge of
the ministry on the 27th of May, 2014.

Fig: 1 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

1.2 INTRODUCTION TO NHPC:


NHPC Ltd is a Mini-Ratna Category-I Enterprise of the Government of India. The company
is one of the largest organisations in the field of hydro power development in the country. The
company is a hydroelectric power generating company dedicated to the planning, development
and implementation of an integrated and efficient network of hydroelectric projects in India.
They execute all aspects of the development of hydroelectric projects, from concept to
commissioning of the projects. NHPC Ltd was incorporated on November 7, 1975 as a private
limited company under the name National Hydro Electric Power Corporation Pvt Ltd. with an
authorized share capital of Rs. 2,000 million. In April 2, 1986, the company was converted into
a public limited company. The company was established with an objective to plan, promote and
organize an integrated and efficient development of hydroelectric power in all aspects. Later,
they expanded their objects to include development of power in all aspects through conventional
and non-conventional sources in India and abroad. During the year 1976-77, the company
received Loktak hydroelectric project with a capacity of 105 MW from Government of India
and in the next year, they received Baira Siul hydroelectric project with the capacity of 180

MW. In the year 1982-83, the company commissioned the Baira Siul power station in Himachal
Pradesh.
During the year 1983-84, the company commissioned all the units Devighat power station
in Nepal and Loktak power station (105 MW) in Manipur. During the next year, they set up a
Hydro Power Training Institute at the Baira Siul hydroelectric project to train operators and
supervisory staff. During the year 1987-88, the company established a satellite
telecommunication network up to link various projects. During the year 1989-90, the
Government of India upgraded the company from a Schedule B to a Schedule A corporation.
During the year 1992-93, the company set up a consultancy wing to provide a range of
specialised services in the investigation, design, construction and operation of hydel projects.
Also, they commissioned Tanakpur power station with the capacity of 120 MW in Uttarakhand.
During the year 1995-94, the company commissioned Chamera I power station with the
capacity of 540 MW in Himachal Pradesh. Also, the company was awarded the lining work of
Jawahar Tunnel in Jammu & Kashmir during the year. During the year 1995-96, they signed an
agreement for execution of Kurichhu hydroelectric project with the capacity of 45 MW in
Bhutan.
During the year 1997-98, the company commissioned the Uri power station with the
capacity of 480 MW in Jammu & Kashmir and during the year 1999-2000, they commissioned
Rangit power station with the capacity of 60 MW in Sikkim. During the year 2000-01, the
company commissioned 45 MW Kurichhu power station in Bhutan. The company entered into
an MoU with Government of Madhya Pradesh to exploit the hydro electric potential of the
Narmada basin by completing the Indira Sagar and Omkareshwar projects. Also they entered
into an MoU with Government of Jammu & Kashmir to exploit the power potential of the state.
During the year 2003-04, the company commissioned the 300 MW Chamera- II power station in
Himachal Pradesh. During the next year, NHDC, a joint venture company commissioned 1,000
MW Indira Sagar hydroelectric project in Madhya Pradesh. During the year 2006-07, the
company added 390 MW generating capacity with the commissioning of Dul Hasti
Hydroelectric Project in Jammu & Kashmir.
The company entered into an agreement with Government of Bhutan for preparation of
DPR of Mangdechhu project with the capacity of 672 MW in Bhutan. During the year 2007-08,
the company commissioned 510 MW Teesta-V power station. NHDC, the joint venture
company commissioned 520 MW Omkareshwar hydroelectric project in Madhya Pradesh. The
company entered into an MoA with the Government of Arunachal Pradesh to execute the
Dibang multipurpose hydroelectric project. Also, they entered into an MoU with the
government of Manipur to exploit the hydro electric potential of the tailrace discharge of Loktak
4

Downstream Hydroelectric Project. During the year, the company signed an MoU with the
Ministry of Rural Development, Government of India and
and Government of Bihar for construction
of Rural Roads and the maintenance under Pradhan Mantri Gram Sadak Yogna in Bihar.

NHPC POWER MAP

Fig: 2 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)
The name of the company was changed from National Hydro Electric Power Corporation
Ltd to NHPC Ltd with effect from March 28, 2008. The company was conferred with MiniMini
Ratna (Category I) status by the Ministry of Power with effect from April 28, 2008
200 with an
authorized share capital of Rs. 1,50,000 Million. During the year 2008-09,
2008 09, the company entered
into an MoU with the Government of Jammu & Kashmir, JKSPDC and PTC to incorporate a
joint venture develop the Pakal Dul and other hydro projects in the Chenab River Basin. Also,
the company along with NTPC, PFC and Tata Consultancy Services Ltd incorporated a joint
venture company, namely National Power Exchange Ltd. During the year 2009-10,
2009
the company
along with NTPC, Powergrid Corporation of India Ltd and Damodar Valley Corporation
incorporated a joint venture company, namely National High Power Test Laboratory Pvt Ltd.In
January 8, 2010, the company signed an agreement with Ministry of External Affairs (MEA),
Government of India for taking up Additional
Additional Investigations and Preparation of Updated
Detailed Project Reports for 1200 MW Tamanthi HE Project and 642 MW Shwezaya HE
Project in Myanmar.
In March 23, 2010, the company has signed an agreement with Department of Energy,
Royal Govt. of Bhutan for providing engineering & consultancy services relating to prepre
5

construction activities of Mangdechhu Hydroelectric Project (720 MW) in Bhutan at a total cost
of Rs 11.67 crore. In April 28, 2010, an MoU was signed amongst NHPC Ltd, Government of
Manipur and SJVN Ltd for formation of a joint venture company for implementation of 1500
MW Tipaimukh Hydroelectric (Multipurpose) Project in Manipur. NHPC Ltd, SJVN Ltd and
Government of Manipur shall have a share holding of 69%, 26% and 5% respectively. The
Unit-I of SEWA-II Hydro Electric Project started commercial operation with effect from June
29, 2010. Also, the SEWA-II H.E. Project (120 MW) started commercial operation with effect
from July 24, 2010, consequent upon successful trial run of balance Unit-II (40 MW) of the
Project. During the year 2010-11, a joint venture company, the Loktak Downstream
Hydroelectric Corporation Ltd, was formed for executing the 66 MW Loktak Downstream
Project in Manipur with a 74% by the company and 26% by the Government of Manipur. The
company signed an joint venture agreement with SJVN Ltd and the Government of Manipur to
implement the 1,500 MW Tipaimukh Hydroelectric (multipurpose) Project in Manipur. The
project is in advanced stage of formation with shareholding of NHPC, SJVNL and the
Government of Manipur being ratio of 69:26:5 respectively. In September 29, 2010, the 120
MW SEWA-II Power Station (3x40) 120 MW in Jammu and Kashmir was dedicated to the
nation. With the commissioning of Sewa-II, the companys installed capacity increased to 5,295
MW through their 14 operating power stations (including the 1,000 MW Indira Sagar and 520
MW Omkareshwar Power Stations of NHDC Ltd, a subsidiary of NHPC and the Government of
Madhya Pradesh).

Fig: 3 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)
In March 2011, the company signed an agreement with the Department of Energy, Royal
Government of Bhutan for providing engineering consultancy services for pre-construction

activities at the Mangdechhu H.E. Project (720MW) in Bhutan. In May 23, 2011, the company
signed an MoU with Russia`s power generating Company JSC RusHydro for Cooperation on
case-to-case basis in Hydropower projects in India and other countries. In June 2011, the
company incorporated a new joint venture (JV) company, namely Chenab Valley Power Projects
(P) Ltd to execute Pakul Dul and other hydroelectric projects, with an aggregate installed capacity
of about 2100 MW in the Chenab basin in the state of Jammu & Kashmir.
The equity share capital in the Chenab Valley Power Projects shall be contributed by
NHPC, Jammu and Kashmir State Power Development Corporation and PTC India in the ratio of
49:49:2 respectively. The company signed one more MoU for a joint venture company with
OHPC and the Government of Orissa to implement three hydroelectric projects - Sindol-I,II and
III, with a total capacity of 320 MW on the Mahnandi river, downstream of Hirakund in Orissa.
The company is currently engaged in the construction of 10 hydroelectric projects with a
combined installed capacity of 4,502 MW in the states of Jammu and Kashmir, Himachal
Pradesh, West Bengal, Arunachal Pradesh and Assam. Seven new projects with a combined
capacity of 5,965 MW are in the clearance and approval stages. These projects will come up in
the states of Arunachal Pradesh, Sikkim and Uttarakhand. With the commissioning of these
projects, the company aspires to become a 9,500 MW company in the coming years. NHPC has
achieved annual MOU EXCELLENT generation target for 2015-16 as Actual Generation
23,679 MU (31-March-2016) against "EXCELLENT" MOU Generation Target 22000MU.

Fig: 4 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

Shri K.M.Singh is the current CMD of NHPC. NHPC is listed in National Stock Exchange and
Bombay Stock Exchange on September 1, 2009. Government of India and State Governments
have 86.36% share as a promoter of the Company while remaining 13.64% is public
shareholding. The total number of shareholders are 1,91,337 and share capital is Rs.
12,300,742,773. NHPC will setup 50 MW solar power project in Tamil Nadu and expects it to
7

get completed by March next year. Last year in October, NHPC had inked an agreement with
Uttar Pradesh New and Renewable Energy Development Agency for setting up its first solar
power project in the state at a cost of Rs 400 crore. The Scheduling and Despatch of all the
generating stations owned by National Hydro Power Corporation is done by the respective
Regional Load Despatch Centres which are the apex body to ensure the integrated operation of
the power system grid in the respective region. All these Load Despatch Centres comes under
Power System Operation Corporation Limited.

1.2.1 ABOUT THE NHPC SYSTEM:


NHPC Ltd is a leading Public sector Power Company established Under the Companys
Act 1956 with the initial authorized share capital of Rs 2000 million for hydropower
development. NHPC Ltd is spread throughout the Indian subcontinent, and abroad in its various
Project sites. These Projects as well as the Corporate Office have to invite tenders from qualified
Contractors/Companies to fulfill their various requirements. NHPC has a network of around 900
PCs located at the Corporate Office and Projects and integration of these computers to maximize
the benefits is underway. With about 300 man-years of experience in software development,
NHPC has been offering consultancy services in this area to a number of public enterprises like
BBMB, SJVN Ltd. etc. Effective and reliable communication system between NHPCs Corporate
Office and the remotely located projects is of paramount importance for effective functioning. A
VSAT based closed user group satellite communication network has been implemented for
connecting Corporate Office and Projects and the network supports voice/data/fax
communication. In addition, Long Distance Satellite Telephones and INMARSAT phones have
been provided for efficient communication network in the Organization. In a nut shell, NHPC has
world class expertise and potent for execution of hydro electric projects of any size from
concept to commissioning

1.2.2 CORPORATE VISION :


A world class, diversified & transnational organization for sustainable development of hydro
power and water resources with strong environment conscience.

1.2.3 CORPORATE MISSION :


To achieve international standards of excellence in all aspects of hydropower and
diversified business.
To execute and operate projects in a cost effective, environment friendly and socioeconomically responsive manner.
To foster competent trained and multi-disciplinary human capital.
To continually develop state-of-the-art technologies thru innovative R&D and adopt best
practices.
8

To adopt the best practices of corporate governance and institutionalize value based
management for a strong corporate identity.
To maximize creation of wealth through generation of internal funds and effective
management of resources.

1.2.4 CORPORATE OBJECTIVES:


To Plan, promote and organize an integrated and efficient development of power in all its
aspects through Conventional and Non Conventional Sources in India and Abroad subject to
clause 1 (b), including planning, investigation, research, design and preparation of preliminary,
feasibility and definite project reports, construction, generation, operation and maintenance of
power stations and projects, transmission, distribution, trading and sale of power generated at
Stations in accordance with the national economic policy and objectives laid down by the Central
Government from time to time and release of water and other needs to the State Govt. as per the
agreed parameters.
To Plan, promote and organize an integrated and efficient development of Thermal Power
in all its aspects through its subsidiary Company i.e. Narmada Hydroelectric Development
Corporation Limited including planning, investigation, research, design and preparation of
preliminary, feasibility and definite project reports, construction, generation, operation and
maintenance of power stations and projects, transmission, distribution, trading and sale of power
generated at Stations.
To undertake, where necessary, the construction of inter-state transmission lines and
ancillary works for timely and coordinated inter-state exchange of power.
To coordinate the activities of its subsidiaries, to determine their economic and financial
objectives / targets and to review, control, guide and direct their performance with a view to
secure optimum utilization of all resources placed at their disposal.
To act as an agent of Government / Public Sector financial institutions, to exercise all the
rights and powers exercisable at any meeting of any Company engaged in the planning,
investigation, research, design and preparation of preliminary, feasibility and definite project
reports, construction, generation, operation, maintenance of Power Stations and Projects,
transmission, distribution, trading and sale of power in respect of any shares held by the
Government, Public financial institutions, nationalized banks, nationalized insurance companies
with a view to secure the most effective utilization of the financial investments and loans in such
companies and the most efficient development of the concerned industries.
To carry on the business of purchasing, selling, importing, exporting, producing, trading,
manufacturing or otherwise dealing in all aspects of planning, investigation, research, design and
9

preparation of preliminary, feasibility and definite project reports, construction, generation,


operation and maintenance of Power Stations and Projects, transmission, distribution and sale of
Power, Power Development, including forward, backward or horizontal integration ancillary and
other allied industries and for that purpose to install, operate and manage all necessary plants,
establishments and works.

1.2.5 VALUES
Respect the individuality
Be a model employer
Efficiency, profitability, cost, consciousness
Concern for environment and ecology
Innovative entrepreneurship
Sensitivity to feedback
System approach

1.2.6 PERFORMANCE HIGHLIGHTS SO FAR DURING 2015 2016


As per unaudited financial results for the half year ended 30th September 2015, NHPC
Limited earned net profit of Rs 1948.crore as against Rs 1300 crore earned during corresponding
period of the financial year, thereby registering an increase of 50%.
Registered sales turnover of Rs. 4320 crore which is 4.86% higher than the sales turnover
of Rs. 4120 crore registered during the corresponding period of the previous year.
Realization of dues stands at Rs.3384.17crore as on 30.09.2015 against Rs.2758.58 crore
as on 30.09.2014.
NHPC T Series Bond issue amounting to Rs.1474.92 crores was placed through private
placements basis at a coupon rate of 8.50% opened and closed on 14.07.2015. The issue was fully
subscribed.
The cumulative generation of NHPCs Power Stations up to October 2015 is 18367 MU
against Very Good MoU target of 16976 MU.
The cumulative PAF of NHPC Power Stations up to October 2015 is 89.5% against Very
Good MoU target of 86.5%.
NHPC has made a total dividend payout of Rs.664.25 crore for the year 2014-15, out of
which the aggregate dividend pay out to Govt. of India is Rs.570.96 crore . The dividend payout
was presented to Shri Piyush Goyal , Honble Union Minister of State (Independent charge) for
Power, Coal, New & Renewable Energy on 29.10.2015.

10

Power

Purchase Agreement (PPA) in respect of Tawang

HE Project Stage-I &II,

Arunachal Pradesh has been signed between NHPC Ltd. and Govt. of Nagaland on 21.08.2015.
This is the first PPA signed in respect of both the projects.
Ministry

of Environment, Forest & Climate Change, Govt. of India has accorded

Environmental Clearance to Dibang Multipurpose Project in Arunachal Pradesh.


A MoU was signed by Govt. of West Bengal, West Bengal State Electricity Distribution
Company Limited (WBSEDCL) and NHPC on 03.07.2015 for development of four hydro
projects
(Teesta Low Dam-V, Teesta Low Dam I & II combined, Teesta Intermediate Stage and
Rammam Stage-I ) with a total capacity of 293 MW. The projects shall be developed by NHPC
on Build, Own, Operate and Maintain (BOOM) basis.
Rangit Power Station successfully handed over the Rothak-Sagbari 11KV transmission
line under CSR-SD Scheme of Corporation, to Energy & Power Department of Govt. of Sikkim
on 07.07.2015
NHPC has also diversified into renewable energy sector.
As part of Ministry of Powers comprehensive reward scheme for recognizing meritorious
performance in Power sector, NHPC was awarded Gold Shield for the year 2013-14 in the
category of Early Completion of Hydro Power Projects for Unit-3 of Nimoo Bazgo H.E.
Project on 03.06.2015.
NHPC has been awarded First Prize by Ministry of Home Affairs, Government of India
under new Rajbhasha Kirti Puraskar scheme for outstanding work in implementation of
Rajbhasha for the year 2014-15amongst public sector undertakings located in Region A. The
award was presented by Honble President of India on 14.09.2015.
NHPC Limited emerged as Winner at Dun & Bradstreet-Everest Infra Awards 2015 in
the Power Generation (Renewable Energy) category recognizing its performance under the
category. Shri K.M. Singh, CMD, NHPC received the award in the presence of Shri Piyush
Goyal , Honble

Union Minister of State (Independent Charge) for Power, Coal, New &

Renewable Energy on 28.10.2015.


In recognition to the commendable work towards the Govt. of Indias flagship
programme Swachh
K.M.Singh,Chairman

Bharat Abhiyan by NHPC,40 officers from NHPC including Shri


and

Managing

Director,NHPC,Shri

D.P.Bhargava

Director

(Technical),NHPC were felicitated by Shri Piyush Goyal, Honble Union Minister of


State(Independent Charge) for Power,Coal,New

& renewable Energy on 2nd November

2015.NHPC successfully constructed a total of 7142 toilets under Swachh Vidyalaya Abhiyan in

11

a span of one year. Honble Minister in particular praised the efforts of NHPC Limited in the
construction of toilets in extremely difficult and remote locations.
NHPC currently has an installed capacity of 4987 MW at standalone and 6507 MW on
consolidated basis with a total of 20 operating power stations. 18 power stations are operated by
NHPC while 2 are operated by NHDC a subsidiary company. Apart from this, the company has a
total of 5 projects under construction with four hydro power projects with total installed capacity
3290 MW which includes Teesta

Low Dam Stage-IV (160MW), Kishanganga (330MW),

Parbati -II (800MW) & Subansiri Lower (2000 MW) and a wind project (50MW) in Jaisalmer,
Rajasthan.

1.2.7 INDUSTRY ANALYSIS:


As on date NHPC Limited has become the largest organization for hydropower development in
India, with capabilities to undertake all the activities from conceptualization to commissioning in
relation to setting up of hydro projects. NHPC Limited is also planning to take Wind and Tidal
wave projects in the country.
NHPC Limited presently has an installation base of 6507 MW from 20 hydropower stations on
ownership basis including projects taken up in Joint Venture. Considering the impediments faced
during execution of these projects such as unfavourable geological conditions, difficult law and
order problems, inaccessible and remote locations, the achievement so far is commendable. The
generation performance of these stations has been outstanding.
NHPC Limited is presently engaged in the construction of 4 projects aggregating to a total
installed capacity of 3290 MW. Given the renewed thrust on development of hydro power in the
country, NHPC Limited has drawn up a massive plan to add about 10,000 MW of hydropower
capacity by the end of XIII plan (year 2022).

1.2.8 PROFILE OF NHPC:


Table No. 1
(Profile of NHPC)
Authorised Capital

Rs. 1,50,000 Million

Value of Assets

Rs. 3,87,180 Million Approx.

Paid Up Capital

Rs. 123,010 Million 31.03.2010

Projects Completed

15 Nos. (5295 MW)

Projects Under Construction

4 Nos. (3290 MW)

12

Projects Awaiting Clearances

5 Nos. (4995 MW)

Projects Under Survey and Investigation Stage

3 Nos. (1350 MW)

Joint Venture Projects

8 Nos. (5220 MW)

Projects on Turnkey Basis

5 Nos. (89.25 MW)

In 2010-2011
1

Energy Generated

18606 MU

Capacity Index

85.2%

Sales Turnover

4046.59 crore

Net Profit

2166.67 crore

Performance Rating

"Very Good"

In 2009-2010
1

Energy Generated

16960.45 MU

Capacity Index

84.1%

Sales Turnover

42189.0 Million

Net Profit

20905.0 Million

Performance Rating

"Very Good"

In 2008-2009
1

Net Profit

Rs.10752.2 Million

Performance Rating

"Very Good"

Energy Generated

16689.59 MU

Capacity Index

93.61%

13

26980.6 Million

Sales Turnover

In 2007-2008
1

Energy Generated

14813.16 MU

Capacity Index

96.12%

Sales Turnover

23010 Million

Net Profit

Rs. 10040.9 Million

Performance Rating

"Execellent"

In 2006-2007
1

Energy Generated

13048.76 MU

Capacity Index

94.13%

Sales Turnover

19630 Million

Net Profit

9248 Million

Performance Rating

"Very Good"

In 2005-2006
1

Energy Generated

12567.15 MU

Capacity Index

98.15%

Sales Turnover

17140 Million

Net Profit

7427 Millionn

Performance Rating

"Excellent"

Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News
14

1.2.9 ORGANIZATION STRUCTURE:

Fig: 5 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

1.2.10 NHPC: CULTURE:


Core values are both intensely and widely shared
Climate of high behavioral control
Low employee turnover
High agreement among the employees, for what NHPC stands for.
All these point to the fact that strong cohesiveness, loyalty and organization
commitment exist in NHPC lowering he attrition Rate.

1.2.11 SWOT ANALYSIS:


A scan of the internal and external environment is an important part of the strategic
planning process. Environment factors internal to the firm usually can be classified as strengths
(S) or weakness (W), and those external to the firm can be classified as opportunities (O) or
threats. Such an analysis of the strategic environment is referred to as a SWOT analysis.The
SWOT analysis provides information that is helpful in matching the firms resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in
strategy formulation and selection.
15

STRENGTHS :

Largest market share in domestic power generation and a broad customer portfolio across
the country.

Excellent track record of performance in project implementation and plant operation.

Diversified Hydro generation portfolio multiple sizes.

Highly skilled and experienced human resources, exposed to state-of-the art technologies
in project execution and power generation.

Mini - Navaratna status

High brand equity among shareholders.

Strong balance sheet ability to raise low cost debt.

Engineering skills in project configuration and package design.

Turnaround ability for old plants demonstrated in the takeover plant such as Sewa III
Hydro Power Station.

High credit rating that is indicative of the confidence of lenders.

In-house training facility, R&D etc that assist in development of the sector. Thrust on
reducing social costs of capacity growth strong execution of Resettlement and
rehabilitation plans.

WEAKNESS :

Low risk-diversification of business portfolio consists primarily of generation assets.

Poor financial health of customers.

Functional orientation hampering cross functional perspective in decision making.

Long and multi layered procurement process leading to long lead times and process delay.

Fragmented Information Technology (IT) architecture.

Gaps in Human Resources (HR) systems such as performance management, rewards and
incentives and career development.

Inadequate deployment of a strong knowledge management system that could assist in


improving efficiency and effectiveness in all aspects of the business.

Hierarchy for decision making that affects responsiveness.

Role ambiguity and dilution within different lends of the organization.

OPPORTUNITIES :

Expand generation capacities by putting up thermal and hydro capacities; maintain the
position of a dominant generating utility in the Indian Power sector.

Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear power etc
16

with a view to mitigate fuel risks and maintain long run competitiveness.

Expand services for Engineering, Procurement, Construction (EPC), Repair and


Maintenance (R&M) and Operation and Maintenance (O&M) activities in the domestic
as well as international markets.

Backward integrate into fuel management to exercise greater control and understanding
of supply economics.

Lead the development and commercial deployment of non-conventional energy sources


especially in the distributed generation mode.

Improve collections by trading, direct sale to bulk customers and the active role in
allocation in new plants.

Execute increased number of power plants that classify for Mega Power Projects status,
thereby reducing the cost of the projects and power and power generated.

Forward integrate into the distribution business in India.

THREATS :

Limited experience of operating in a truly liberalized environment with competition.

Limited experience of operating in an independently regulated system.

Redirecting power may be constrained by inter-regional connectivity.

Downward regulatory and competitive pressure on tariffs.

Stringent norms for approval of increase in capital costs for projects in event of time
overrun.

Stringent environmental norms in the future may add to the cost of generation.

1.2.12 DIVERSIFICATION:
Decision of diversification to foray into the business of Thermal, Solar, Wind, etc., has
started fetching favourable results. NHPC signed an Memorandum Of Understanding (MOU)
with Government of Chattisgarh for executing a Thermal Plant of 1320 MW (2x660 MW) and
another MOU with Government of Uttar Pradesh for setting up a 50 MW Solar Plant. For Wind
Power also, an MOU was signed between NHPC and Clean Wind Energy Tower (C-WET)
regarding Consultancy services.

17

1.2.13 EXISTING JOINT VENTURES / SUBSIDIARIES:


Table No. 2
(EXISTING JOINT VENTURES / SUBSIDIARIES)

Sl

Name of JV

no.

Company

NHDC LTD.

Equity Partners & Shares

NHPC Ltd. (51%)

Purpose

Set up for development of

& Government of Madhya hydropower, thermal and other


Pradesh (49%)

renewable energy potential in


the state of Madhya Pradesh

CHENAB VALLEY

NHPC(49%),

Set up for development of

POWER PROJECTS

JKSPDC (49%)

Pakal Dul (1000 MW), Kiru

PRIVATE LIMITED

& PTC (2%)

(660 MW) and Kwar (560

(CVPPPL)
3

MW) HE Projects in J&K

LOKTAK

NHPC (74%) & Government

Set up for development of the

DOWNSTREAM

of Manipur (26%)

66 MW Loktak Downstream

HYDROELECTRIC

Hydroelectric Project in

CORPORATION

Manipur

LIMITED (LDHCL)
4

NATIONAL

NHPC (20%),

Set up for development of on-

HIGH POWER TEST NTPC (20%), POWER

line high power test laboratory

LABORATORY

GRID(20%), DVC(20%) &

facility in India and/or abroad

PVT. LTD (NHPTL)

CPRI (20%)

for testing and certification of


short circuit

NATIONAL POWER NHPC (16.67%), NTPC

Set up with the main objective

EXCHANGE

(16.67%), PFC Ltd.(16.66%),

of carrying on the business of

LIMITED (NPEX)

TCS(19.04%), BSE(16.66%),

Power Exchange to facilitate,

The Industrial Finance

promote, assist, regulate and

Corporation of India (5.72%),

manage dealings in Power

The Meenakshi Group (4.77%)


& DPSC Limited (3.81%)
Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News

18

1.3

INTRODUCTION TO SEWA - II HYDRO POWER STATION:

1.3.1 SEWA II HYDRO POWER STATION OVERVIEW:


SEWA II Hydro Power Station which is one of the most efficient & precious Hydro
Electric Power Station of NHPC Ltd. This power station is located on river Ravi at Maska
(Basholi Tehsil) bordering Himachal Pradesh and has been constructed at a cost of Rs. 1061 crore
and has been completed in seven years. This power station was declared commissioned by Union
Power Minister Sushil Kumar Shinde in Jammu & Kashmir in the presence of the state Chief
Minister Omar Abdullah on September 29, 2010. The dam of the Power Station is situated at a
village Ghatti about 80 kms from Basohli in Kathua district and 150 kms from Lakhanpur. The
Power Station is at village Maksha at the junction of river Ravi and SEWA tributary. Jammu &
Kashmir State is getting free 13 per cent power out of the total power generated by Sewa -II
Hydro Power Station. The SEWA - II Hydro Power station is a run-of-the river scheme
constructed on the SEWA river , a tributary of Ravi. The power station has been executed while
facing several challenges including many geological problems and also high water discharge in
some areas of Head Race Tunnel.

Overview of Sewa-II Power Station & Township Area

Power House

Fig: 6 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)
The major components of the SEWA II Hydro power station are a 53 metre (m) high
concrete gravity dam, a 3.3 m diameter and 10.084 km long horse shoe shaped head race tunnel, a
9 m diameter and 111 m high restricted orifice type surge shaft, a 2.4 m internal diameter circular
steel lined pressure shaft, a surface power house with three units of Vertical Pelton turbines of 40
MW each and three tail race outlet channels of 28m, 39m and 50m length each. The power station
will generate 534 Million Units energy annually in a 90% dependable year. The beneficiary states
of the project include Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Uttarakhand , Delhi,
Rajasthan and Union Territory of Chandigarh. Power development in India is the key to

19

economic development. Hydro power has been the main source of generating electricity. The
concept of operating power systems on a regional basis crossing the place, the power supply
industries have been under constant pressure to bridge the gap between supply and demand and
hence, decades of economic planning in India following independence placed significant
emphasis on the development of the power sector. The Power sector in India is predominantly
controlled by the Government of Indias public sector undertakings (PSUs) such as NHPC
(National Hydroelectric Power Corporation), National Thermal Power Corporation (NTPC) and
Nuclear Power Corporation of India (NPCI).
At the end of Financial Year 2014-15, the SewaII Power Station has generated 594.01
MUs (Million Units) which is 14.23% higher than its target of 520 MUs. The Power Station also
recorded highest Plant Availability Factor (PAF) among 18 Power Stations of NHPC i.e. 97.1%
which is 11.6% higher than our target of 87%. It is also the highest generation since
commissioning. Against the scheduled generation of 2.88 MU per day, Power Station has
generated 3.173 MU in one day i.e. all time highest till date since commissioning. Power Station
under Corporate Social Responsibility Sustainable Development Scheme has spent Rs 63 lakhs
on different social activities for local public in this financial year.
The Ministry of Power is the apex body responsible for the generation and development of
power in India. SEWA II Hydro Power Station has aim to establish, maintain and continually
improve the performance on quality, environment and occupational health and safety for
generation of cheap, quality, environment friendly and reliable hydro power and become a Hydro
Power Station dedicated to service of the Nation. SEWA II Hydro Power Station has
commitments to comply with all applicable legislation, regulations and corporate requirements
related to hydropower generation, prevention of Pollution, injury and ill health in all our activities
and to continually improve our quality, environment and occupational health and safety
performance by setting objectives and targets.

Penstock

Surge Shaft

Fig: 7 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

20

SEWA II Hydro Power Station has endeavour to review and rectify any unsafe condition and
ensure good health of all personal, to maximize productivity through systematic & consistent
operations and preventive maintenance, to motivate employees and associates for the cause of
environment and safety, optimum utilization of available resources in power generation, to strive
for zero accidents and to conserve natural resources.

Dam View

Switchyard Area

Fig: 8 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

1.3.2 SALIENT FEATURES OF SEWA H.E. PROJECT STAGE II:


Table No. 3
(SALIENT FEATURES OF SEWA H.E. PROJECT STAGE II)

LOCATION
STATE
District
River
Location of Dam & Power House
Nearest Rail head
Nearest Airport
Latitude
Longitude

JAMMU & KASHMIR


Kathua
Sewa (A tributary of Ravi)
Dam at Gatti & Power House at Mashka
Pathankot
Jammu
320 36 38 N to 320 41 00 N
750 48 46 E to 750 55 38 E

HYDROLOGY
Catchment area at diversion site

381 km2

Design Flood (PMF)

4020 m3/sec

DIVERSION TUNNEL
Diameter & Shape
Length
Diversion Discharge
Invert level at entry

6.0 m, Horse-shoe shaped


290 m
369 m3/sec
EL. 1160.0 m
21

Invert level at exit


Diversion Tunnel Gate
Size of Gate
Gate Operating Platform Level

EL. 1151.0 m
1 No. Vertical lift gate
5mx6m
EL. 1177.0 m

COFFER DAMS
Type
Maximum height of upstream coffer
dam
Maximum height of downstream
coffer dam

Rockfill with Central clay core


16.0 m
8.0 m

DAM
Type
Dam Top
Minimum river bed level at dam site
Deepest Foundation Level
Maximum Dam height (above deepest
foundation level)

Concrete Gravity
EL. 1199.0 m
EL. 1157.6 m
EL. 1146.0 m
53.0 m

SPILLWAY
Location

Central

Type

Orifice Type with Breast wall

Width of spillway

46.0 m

No. of bays

Crest level of spillway

EL. 1168.0 m

Thickness of each pier

3.0 m

Regulation gates opening size (Radial 4 Nos., 7.0 m x 10.8 m size


gates)
Stilling Basin
Energy Dissipation Arrangement
Design flood (PMF)

4020 m3/sec

RESERVOIR
Full Reservoir Level (FRL)

EL. 1197.5 m

Minimum draw down level (MDDL)

EL. 1185.0 m

Gross storage at FRL

544.80 ha-m

Gross storage at MDDL

181.97 ha-m

Diurnal storage

362.83 ha-m

Reservoir area at FRL

37.05 ha

INTAKE
22

Number

Two

Invert level

EL. 1178.00 m

Gates

2 Nos.

Size of each Gate

2.75 m x 3.0 m

Trash Rack

Steel Trash Racks with Raking Machine

INTAKE TUNNELS
Number
Size & type
Design discharge from each intake
(incl. 20% extra for desilting
arrangement)

Two
Dia. 3.0 m, D-shaped
14.55 m3/sec

DESILTING
ARRANGEMENT
No., Type & size of desilting chamber

2 Nos., Dufour type chambers each 85 m long,


8.0 m wide, ht. Varies from 10.7 to 11.2 m

Total Design Discharge in each


chamber

14.55 m3/sec

Particle size to be removed

2.0
EL. 1198.5 m

Gate operation chamber floor


elevation
Size of Gates
No. of Gates
Sill elevation

2.75 m x 3.0 m
1 No.
EL. 1177.8 m

FLUSHING TUNNEL
Branch Tunnels
Branch Tunnel size & shape

No. of gates in each tunnel


Size of gates
Sill elevation
SFT size, shape, Length

2 Nos.
0.75 m x 1.5 m, D-shaped
BT-I - 68m
BT-II - 55m
1 set
0.75 m x 1.5 m
EL. 1168.0 m
1.0 m x 1.8 m, D-shaped Length 346 m

HEAD RACE TUNNEL


Size & type
Design discharge
Velocity
Length

3.30 m - Horse - shoe shaped, concrete lined


24.25 m3/sec
2.69 m/sec
10084 m
23

LOCATION & LENGTH OF


ADITS
Adit No.
Adit-1Adit-2Adit-3Adit-4-

HRT RD
364 m
2685.7 m
5538.5 m
9874.3 m

Length of Adit
123 m
227 m
368 m
280 m

SURGE SHAFT
Size & type

9 m diameter (Internal) Underground.

111 m
2 m x 3.3 m
EL. 1232.0 m
Adit to Surge Shaft top (gate operation 4 m dia. D shaped, Length= 52 m
chamber)
4 m dia. D shaped, Length = 286 m
Adit to Surge Shaft bottom
Vertical Shaft height
Gate Opening Size
Gate Operation Platform

VALVE HOUSE
Size

12.0 m x 7.5 m x 10.0 m

Number of valve

Size & Type of valve

2.4 m diameter, Butterfly valve

PRESSURE
SHAFT/PENSTOCK
Type

Steel Lined

Diameter

2.4 m (Internal)

Underground Pressure Shaft Length

352.0 m

Surface Penstock Length

850.0 m

Vertical Pressure Shaft Length

175.0 m

Horizontal Pressure Shaft Length

598.0 m

Penstock Diameter (after bifurcation)

1.95 m, 1.35 m

Construction Adit to Vertical Pressure


Shaft bottom

4 m dia. D - shaped, Length = 188 m

POWER HOUSE COMPLEX


Type
Installed capacity
Nos. & Size of Units
Turbine Axis Elevation
Type of Turbine

Surface
120 MW
3 Units of 40 MW each
599.0 m
Vertical Pelton
24

Generating units
Maximum gross head
Rated Net head
Design Discharge
Turbine Outlet Stoplog
Energy Generation in MU

3 Nos.
599 m
560 m
24.25 m3/sec
3 Nos
533.52 MU at 90% dependability

SWITCH YARD
Type

Surface, Out door type

Size

100 m x 70 m

Elevation

610.0 m

Out goer

Nominal vottage

132 Kv

OUTLET STRUCTURE
3 Nos.
28 m, 39 m & 50 m

Open Channel
Length of each channel

1.3.3 COST & EXPENDITURE DETAILS (SEWA-II) - AT A GLANCE:


Sanctioned Cost (Net + IDC)

: Rs 665.46 Crores at Sept. 2002 P.L.,

Actual Cost Rs

: 1108 Crores

Unit Sale Rate of Generation Rs. : 4. 12

GENERATION,PAF & UI AT A GLANCE

Fig: 9

(Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

25

Power House Control Room

Switchyard Area

Fig: 10 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

1.3.4 STAGE PROCESS FOR DEVELOPMENT OF HYDRO ELECTRIC


PROJECTS AND KEY ACTIVITIES IN DIFFERENT STAGES OF
PROJECTS:
The upcoming projects of NHPC are categorized broadly into three groups depending
upon the clearance obtained from the Government. This broad classification of new projects
indicates the stage/present status of the projects. This was done with the objective of reducing the
time and cost over run of various projects. Government of India has introduced a three stage
process for development of hydro electric projects. The three stages are:

STAGE 1: SURVEY AND INVESTIGATION AND PREPARATION OF


PRE FEASIBILITY REPORT:
Projects after getting consent from concerned states is entrusted to NHPC by ministry
of power by issuing notification under Section 18A of Electricity Supply Act 1948. NHPC
conducts survey and investigation of preparation of feasibility reports, which is scrutinized by
Central Electricity Authority for accord of commercial viability. In Stage I expenditure up to Rs
10 crores on survey, investigation and preparation of pre-feasibility report for hydroelectric
projects will be sanctioned by the Ministry of power subject to condition that the proposed
hydroelectric project is figuring in the Five Year Plan or long term hydroelectric power
development plan. If the expenditure for the above is more than Rs 10 crores it will be considered
by committee of Pre-Public Investment Board (PIB).

26

KEY ACTIVITIES INCLUDED IN STAGE I:


Data collection/preparation of application for site clearance by Ministry of Environment
and Forests (MOEF).
Establishment of gauge and discharge sites and Meteorological observatories.
Hydrological measurements and meteorological observations will continue till construction of the
project.
Obtaining of site clearance from Ministry of Environment and Forests (MOEF).
Essential geological exploration for establishing type of dam and its foundation and other
civil structures.
Topographic survey of the project area and detailed survey for the purpose of preliminary
layouts of Dam, Powerhouse etc.
Essentially temporary infrastructure /access required for carrying out the above works.
Commencement of Environment Impact Assessment (EIA) and Environmental
Management Plan (EMP) studies.
Formulation of a pre-feasibility report for assessment of commercial viability of the
project.
Preparation of estimates for Stage II activities and their submission to Central Electricity
Authority (CEA).

STAGE II: DETAILED INVESTIGATION, PREPARATION OF DPR AND


PRE- CONSTRUCTION ACTIVITY INCLUDING LAND ACQUISITION:
Submission of EIA and EMP to MOEF and obtaining Forest and Environment Clearances
of the project. These projects include those which have been cleared/sanctioned by Ministry of
Power / Government of India after accord of commercial viability on the basis of feasibility
report and vetting of estimate for Stage-II activities by CEA for carrying out detailed and
extensive site investigations leading to the preparation of Detailed Project Report (DPR). Preconstruction Works, developments of infrastructure facilities, land acquisition are also included in
this stage. All cases in Stage-II, where the estimate of cumulative expenditure including Sage-I
exceeds Rs 10 crores will be considered by the committee of PIB (CPIB) (Pre-Public Investment
Board). Proposal costing Rs 20 crores and more will acquire FMs approval while those involving
cost of overt Rs 50 crores will require the approval of the Cabinet / CCEA (Cabinet Committee
on Economic Affairs ). Projects which have been found to be commercially viable and have
obtained site clearance from Ministry of Environment and Forests would be considered for StageII development.

27

KEY ACTIVITIES INCLUDED IN STAGE-II:


Essential survey and investigation work comprising the following:
Detailed topographical survey of reservoir area and project area.
Procurement of satellite imageries including aerial maps where required.
Geo-physical surveys comprising seismic and resistivity test etc.
Hydro-meteorological observations.
Collection of silt data and its analysis.
Geological exploration comprising surface mapping, drilling, drifting and then logging
etc.
Construction material survey both qualitative and quantitative.
Preparation of Detailed Project Report.
Submission of DPR to CEA and obtaining Techno-Economic Clearance from CEA
Submission of EIA and EMP to MOEF and obtaining Forest and Environment Clearances
of the project.
Temporary and Permanent buildings (residential and non-residential).
Roads and permanent bridges as may be required for approaching work sites and
transportation of heavy equipment.
Acquisition of land required for the execution of the project includingland. Initiating the
process for acquisition of land of the reservoir sub mergence area.
Arrangement of construction power.
Preparation of tender specification and bid documents.
Submission of PIB memo/CCEA note.

STAGE III: EXECUTION OF THE PROJECT AFTER INVESTMENT


DECISION THROUGH PIB / CCEA.
Project proposal after getting various statutory clearances are put up to Pre-Public
Investment Board (PIB) for recommendation which is there after sanctioned by Cabinet
Committee on Economic Affairs (CCEA) for execution.
The approval of the Pre-Public Investment Board (PIB) / Cabinet Committee on
Economic Affairs (CCEA) would be sought after Environment and Forest clearance have been
obtained from Ministry of Environment and Forests (MOEF) and Techno-Economic Clearance
from Central Electricity Authority (CEA).

28

Table No. 4
(TIME PERIOD FOR KEY ACTIVITIES FOR STAGE I,II ,III)
SL.
No.

Activity

I
1.
2
3

Stage-I activities
Vetting of Stage-I estimates
MOEF clearance
Completion of activities under StageI
Vetting of Stage-II estimates
Stage-II activities
Preparation of DPR
TEC
Completion of land acquisition and
infrastructure works
Submission of CCEA Note

4
II
1
2
3
4
III
1

Authority
/Agency

Scheduled period

CEA
MOEF
PSU
CEA

3 weeks
1 month
Within 1 year after Date of MOEF
clearance
3 weeks

PSU
CEA
PSU

18 months
3 months after submission of DPR
One and a half years

MOP

30 days after PIB memo

Stage- III activities


Construction of project

As per PIB/CCEA decision

Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News

1.3.5 BUSINESS MODEL OF SEWA II HYDRO POWER STATION:


1. Efficiency improvement includes both improvements in the existing process and through
improvement in the technology used to increase the productivity of the company.
Research & Development Centre is accredited and provides high end scientific services to
all the companys stations as well as many outside stations resulting in improving
availability and reliability of stations by providing condition assessment, failure analysis,
solving and analyzing specific problems, and helping our stations in increasing the
availability and reliability of their units.

2. Cost efficiency i.e. providing power at reasonable prices so that they could provide power
to all in need. Their ultimate aim is to reduce the cost because without being the cost
leader they cant dominate the market. So as a market leader they are always aiming at
reducing the cost.

3. Technology enhancement i.e. to stay in competition they have to continuously enhance


their technology. Technology enhancement is also a part of cost efficiency. That means by
applying the new technologies the company can reduce the cost as well as improve the
efficiency.

4. Eco friendly system: Driven by its commitment for sustainable growth of power, NHPC
29

has evolved a well defined environment management policy and sound environment
practices for minimizing environmental impact arising out of setting up of power plants
and preserving the natural ecology.

1.3.6 OPERATIONS OF THE BUISNESS:


The company was established to plan, promote and organise an integrated and efficient
development of power in all its aspects through conventional and non-conventional sources in
India and abroad subject to clause 1(b) including planning, investigation, research, design and
preparation of preliminary, feasibility and definite project reports, construction, generation,
operation and maintenance of power stations and projects, transmission, distribution, trading and
sale of power generated at stations in accordance with the national economic policy and
objectives laid down by the Central Government from time to time and release of water and other
needs to the State Government as per the agreed parameters.

SEWA RIVER:
Sewa is a perennial river and tributary of river Ravi. It originates from Sarthal range at an
EL4200m and is fed by a number of perennial streams on either side in its 53kms course before
its confluence with river Ravi at an elevation of 578m. The general flow direction of the river is
NW-SE through series of narrow gorges, cascades and intermittent flat areas. The general
physiographic features of the area are rugged and snow covered mountain ranges, cut into
precipitous ridges and deep ravines with steep to moderately steep slopes. Most of the terrain is
covered with forests, shrubs and grasslands besides patchy agricultural fields. Sewa II is a run
of river scheme with an installed capacity of 120 MW.
SEWA HE PROJECT STAGE-II
J&K

Yard

PROJECT LAYOUT

Fig: 11 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)
30

LOCATION:
Sewa II Power Station is located in the Basoli Tehsil of Kathua District of Jammu & Kashmir
State. Dam site is located at Village Gatti, 80 Kms from Basohli and 150 Kms from Lakhanpur.
The Power House is located near a small village Mashka, at the junction of Sewa and Ravi and
just in front of the underground Power House of Chamera Power Station Stage I. The nearest
rail head and airport is Pathankot which is 110 kms from Project Headquarter.

GEOLOGICAL CONDITION:
The Power Station is mainly located in Murree Formation, Panjal volcanic and Tanwal /
Bhadrawah group of rocks in lower Himalayas boarding Jammu & Kashmir and Himachal
Pradesh. Muree formation comprises purple shale, siltstone and grey sandstone; Tanwal group of
rocks comprise phyllites, slates and quartzites, slates & granite gneiss. Intermittently a few
discontinuities are also crossing the formation.

RIB ERECTION & FORE POLING

SLUSH FLOW

Fig: 12 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

CONTRETE DAM:
A 53 m high concrete gravity dam, with a total crest length of 114m and with a 29.5m high head
over
the crest of the overflow section with 4 radial gates, stands constructed near village Gatti in
Tehsil Bani.

31

Dam Radial Gates & Intake

Dam Top View

Fig: 13 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

INTAKE AND DESILTING CHAMBERS:


Underground intake structure is located on the right bank of the river, close to the spillway of the
Diversion Dam. There are two Desilting Chambers of size 85 m long x 8 m width 10.7 m to 11.2
m height, followed by a main silt flushing tunnel of 364 m length.

Intake View

Dam Upstream View

Fig: 14 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

HEAD RACE TUNNEL:


A 10084 m long Head Race Tunnel of 3.3 m dia having Horse shape and concrete lined section is
located on the right bank of Sewa river. It is designed for 24.25 cumecs discharge. In view of the
longer length of the tunnel, four access Adits were constructed.

32

Concrete Lining Completed

Rib Erection

Fig: 15 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

SURGE SHAFT AND PRESSURE SHAFT:


A 9m dia. Restricted orifice type and 111m height concrete lined Surge Shaft has been provided
near the downstream of HRT to absorb the water fluctuation / surge during the operation of
generating units.

HRT Face

Butter Fly Valve

Fig: 16 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)
Pressure Shaft is of 2.4m dia and 352m length followed by Surface Penstock of 826m length
terminating into 2.4 m dia and 175m deep Vertical Shaft leading to a 598m long underground
Horizontal Pressure Shaft bifurcating twice into 3 Penstocks of 1.20m dia each upto Power
House.

33

Fig: 17 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

POWER HOUSE:
Three vertical Pelto Units of 40 MW each are installed in the Surface Power House of size 76m
length x 18m width x 34m height. The Power House is located near village Mashka.

TAIL RACE CHANNEL:


Three Open channels of length 28 m, 39m, and 50m respectively shall discharge the water after
generation of power directly into the reservoir of Sewa Hydroelectric Project, Stage III.

ENVIRONMENT:
A comprehensive Environment Impact assessment (EIA) of the Project has been carried out
covering the overall impacts on different environment components viz. Water, Land, Biological,
Socio-economic, Weather and Climate. The results of EIA studies from basis for preparation of
the following feasible / viable Environment Management Plans (EMP) so as to minimize the
adverse impact on the Environment.

Catchment Area treatment plan.

Rehabilitation & Resettlement plan.

Compensatory forestation plan for loss of forestland.

Biodiversity conservation plan.

Green belt plantation.

Reservoir Rim treatment plan.

Restoration of Quarry site.

Muck Disposal plan.

Solid waste Disposal plan.

Health & Hygiene plan.


34

Free fuel arrangement plan.

Sustenance of Fisheries plan.

Environment monitoring plan.

Disaster Management plan.

Monitoring of the Environment Management plan under implementation is being carried out by a
high level Multi disciplinary committee with members from MOEF, Forestry, Ecology, Soil
Conservation, Wild life etc.

School constructed for oustees

Plantation in Catchment area

Fig: 18 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

RESETTLEMENT & REHABILITATION:


Rehabilitation (R&R) scheme for the Project affected families is being implemented religiously.
The Salient features are:Oustee & Transportation Grant: Oustee & Transportation grant has been given to affected
families whose land has been acquired for the construction of the project. This is in addition to
the compensation paid towards the cost of houses to the oustees.
Additional Grant: 30% Addition amount on the assessed value of houses / structures has also
been provided on the recommendation of District Administration. For the land oustees entire
payments towards oustee grant, transportation grant, cost, structure & 30% additional amount on
assessed value of structure has been paid to the land oustees through respective collectors.
Vocational Trainings: Special Vocational Trainings viz. Apiculture, Poultry farmings, Rabbit
farming, Sericulture, Horticulture activities etc. are v=being imparted to the Project Affected for
their Socio-economic upliftment.

METHODOLOGY FOR RESETTLEMENT AND REHABILITATION:


The basic law which has guided the R & R of the displaced people has been the Land Acquisition
Act of 1894 where the Government is empowered to acquire any land for public purpose and to
pay cash compensation. In NHPC, detailed socioeconomic surveys of the affected families are

35

conducted taking into consideration their sociological, cultural, economical, educational,


occupational and religious aspects. The representatives of affected people are consulted with
active involvement of representatives from the respective state Governments. He views and
requirements of the people are given utmost importance. On the basis of this study, a R & R plan
for every project is prepared.

COST:
Estimated completion cost of project is Rs.1061 crores.

BENEFITS:
The Sewa II power Station is generating 534 MU annually in a 90% dependable year. The
Power Station will provide 120 MW peaking capacity in the power system of the Northern
region. The beneficiary States of this Power Station are Jammu & Kashmir, Uttrakhand, Haryana,
Himachal Pradesh, Punjab, Utter Pradesh, Delhi, Chandigarh and Rajasthan. Besides, Jammu &
Kashmir will also get 12% free power from this power station. Sewa II is the 14th Project
completed by NHPC and has started full commercial generation of 120 MW w.e.f. 24th July 2010.
With the commissioning of Sewa II installed capacity of NHPC has gone upto 5295 MW. The
overall socio economic condition of the area has been improved due to the construction of this
project.
View of Sewa-II Township at Dam site Sarthali

Fig: 19 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

PLANT LAYOUT OF SEWA-II POWER STATION:


Mostly, the fast moving water (kinetic energy) strikes the turbines and they start moving
(mechanical energy) and then this energy is used to run electric generators. The transference of
energy takes place from one form to another. Now instead of water wheels water falling from a
vertical height is used which has stored potential energy in it due to its position and the water is

36

then passed through the gate or vessels which take the water to the turbines which convert
potential energy into mechanical energy, these vessels are called penstocks.

WORKING OF HYDROPOWER PLANT:


There are four parts of a typical hydropower plant which are:

DAMS:
The dam is made on a river to collect water. Whenever it rains, the water is collected into the
dam so it serves as a water reservoir. The potential energy for further work is generated by the
water level difference between the dams and the turbines because the water level in the dams is
very high. Dams also control the water flow through penstocks.

TURBINES:
The next step is to convert this kinetic energy of water into mechanical energy. The water flows
from a height throw the penstocks which are the channeled vessels to the turbines which have
blades. The falling water has enough kinetic energy that when they strike hard with the blades of
the turbines, they start spinning which means that the kinetic energy is converted into mechanical
energy. But the turbines use potential and mechanical energy of falling water to convert into
work.

OVERVIEW OF SEWA-II POWER STATION

TRANSMISSION LINES

Fig: 20 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

37

GENERATORS:
The shafts of the turbines convert the mechanical energy into electric energy. Basically, the
generators work on the principle of magnets which is that when we pass a magnet near a
conductor, electric current flows through it.

ROTOR AND STATOR:


The rotor having field pole rotates on a specific speed. When it rotates it passes the field poles
across the stator to make sure that it has the same effect of electric field. The water should keep
on moving constantly to make sure that the amount of electricity produced is great. Static water
cannot generate electricity.

TRANSMISSION LINES:
The electricity via power lines is transferred to substation which provides it to the consumers. So,
the process is of great importance. It should be performed in a right manner to ensure the great
production of electricity. This process is not much costly as no fuels are produced and not much
health hazardous chemicals are produced by it.

OPERATION SEQUENCE OF MACHINES:


SHUTDOWN TO GENERATION
1. Reset the sequencer Sequence Reset.
2. Protection Memory Reset and All drive reset.
3. Check for SP1 & SP2 conditions OK status.
4. Switch on the Clean Cooling Water system, Generator Transformer CW & Oil system.
5. Give the command to FGMIV OPEN.
6. With MIV fully open, give command to HSLS ON.
7. Give Governor Start Command and deflector will open above 35%.
8. Switch ON the Raw Cooling Water Pump.
9. With the Unit speed more than 475rpm. Close the Field Breaker.
10. Switch ON the excitation.
11. With full voltage build up switch ON the autosynchronizer.
12. With Generator Circuit Breaker close and load to preset MW.
13. Now change the UAB supply from SSB to UAT. Ensure the cooling water system.
14. Click All Drive Reset.

38

GENERATION TO SHUTDOWN:
1. Reset the sequencer Sequence Reset.
2. Change the UAB supply from UAT to SSB supply.
3. Deload the Unit to less than 2 MW and open the GTCB.
4. Switch OFF the Excitation & wait for 10seconds and then open the field breaker.
5. Give command for Governor Stop and ensure the deflector full close feedback.
6. Give command for FGMIV CLOSE.
7. Switch on the HSLS with speed LT 150 rpm.
8. Apply the brakes with less than 50 rpm.
9. Release the brakes with unit standstill and switch off the HSLS.
10. Switch OFF the Clean Cooling Water system. Raw cooling water & Oil system.
11. Click All Drive Reset

SEQUENCE OF START / STOP

COOLING SYSTEM

Fig: 21 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

1.3.7 SEWA II POWER STATION LAYOUT:


TURBINE

GENERATOR

11 KV, 120 MW

STEPUP
GENERATOR

132 KV

POWER GRID
39

The power generated through the generators is 11 Kv.


This 11 Kv power is stepped up by step-up generator to 132 Kv.
This is done in order to avoid heavy Cabling for transmission of power.
This is sent to power grid.
From Power grid, the power distributions are 132 Kv which is given to factories. In the
same way 33 KV, 11 KV are stepped onto 440v and again stepped onto 230v which is
used to household purpose.

GENERAL HYDRO POWER PLANT LAYOUT

Fig: 22 (Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

40

(CHAPTER - 2)
RESEARCH DESIGN

CHAPTER -2: RESEARCH DESIGN


2.1

RESEARCH DESIGN:
Research means a search for facts - answers to questions and solutions to problems.

Designing of the research is done mainly to solve the problem of getting the various stages of the
research under control. This control factor is very important for the researcher during any of the
research operation. Preparation of the design for the research forms a very critical stage in the
process of carrying out some research work or a research project. Research Design in general
terms can be referred to as the scheme of work to be done or performed by a researcher during the
various stages of a research project.
With the help of the research design, one can very easily handle and operate research
work as research design acts as a working plan, which is made by a researcher even before he
starts working on his research project. By this, researcher gets a great help and guidance in
achieving his aims and goals. According to Russell Ackoff, research design is the process of
making decisions before a situation arises in which the decision has to be carried out. It is actually
a process of deliberate anticipation directed towards bringing an unexpected situation under
control.

2.2

DATA COLLECTION:
The term data refers to qualitative or quantitative attributes of a variable or set of

variables. Data are typically the results of measurements and can be basis of observations of a set
of variables. Data collection is a term used to describe a process of preparing and collectively
data. The purpose of data collection is to obtain information to keep on record, to make decisions
about important issues, to pass information on to others.
There are many techniques of data collection but the way used in the present research is
best suitable. The data required for analysis may be primary or secondary.

2.3

OBJECTIVES OF THE STUDY:


The main objectives of the project are following:

To study that the SEWA II Hydro Power Station generate the maximum power energy

to meet the power grid demand.

To Study that SEWA II Hydro Power Station meet the yearly target as fixed by Ministry

of Power on the basis of design energy at 100% & 95% Machine availability and 90% dependable
year.
41

To find out the information such as reactive powers at generator buses, magnitudes of

load bus voltages, real and reactive power flow on transmission lines, other variables being
specified which are essential for continuous monitoring of the current state of the system

To study the different reports such as Daily Generation Transmission Report, UI

(Unscheduled Interchange) Charges report, Hourly Station Data, Hourly Reservoir Level Data, UI
Calculation report, Hourly Station Parameter Report, Frequency Graph, Declared Capacity etc.

2.4

SCOPE OF THE PRESENT STUDY:


This research will be extremely helpful for the entire production and operational manager.

One of the important functions of the production and operational manager is to maximize the
generation by optimum utilizing the precious water resources so that financial benefit to the
Corporation. Further this study also tells the operational manager how maintain the stability of
the power grid by meeting the peak load demand. This study will provide full practical
knowledge regarding how efficiently operate the hydro machines to generate the more energy and
Unscheduled Interchange charges, knowledge of different reports, Hydro components and
parameters of hydro power station, management of precious water

resources to meet the

generation target etc.

2.5

RESEARCH METHODOLOGY:

1.

Forecasting is the process of making predictions of the future based on past and present

data and analysis of trends. A common place example might be of some variable of interest at
some specified future date is a similar, but more general term. Both might refer to formal
statistical methods employing , or data, or alternatively to less formal judgmental methods.
Usage can differ between areas of application: for example, in , the terms "forecast" and
"forecasting" are sometimes reserved for estimates of values at certain specific times, while the
term "prediction" is used for more general estimates, such as the number of times floods will
occur over a long period and are central to forecasting and prediction; it is generally considered
good practice to indicate the degree of uncertainty attaching to forecasts. In any case, the data
must be up to date in order for the forecast to be as accurate as possible.
Using the Forecasting Method to find out the maximum Power energy generation and
Dam Water Level for the day / next day based on previous day river water inflow, current
reservoir water level and seeing the daily weather condition from IMD (India Meteorological
Department) web site because SEWA II Power Station having small water storage capacity.
42

EXPLANATION AS BELOW:
Forecast of maximum Power Energy and Dam water Level for the day / next day w.r.t. previous
water inflow:Dam water Level at 00:00 Hrs. = A
Previous Day Inflow as per Daily Generation Report = B Cumecs
Water Collected in Reservoir in 24 Hrs. as previous day water inflow for the next
day = B * 24 * 60 * 60 = C Cubic Mtrs.
Water quantity required to fill up one Mtr . from current level as per Design Data in Reservoir =
D Cubic Mtrs.
Water Level increase in Dam = (A+(C/( D * 100) = E Mtrs.
Energy required to be generated as per daily target = F MU
Energy generated by one machine in 24 Hrs. = 0.96 MU = G
Water required by one machine = 8.125 Cumec. = H
Water inflow required for Energy generation ( F ) by the three machines = 8.125*F/.96 =
H*F/G = 26.33 = I Cumec\Water required to produce the energy = I * 24 * 60 * 60 = I * 24 * 60
*60 = J Cubic
Water Level used for energy generation = J/( D*100) = K Mtrs
Estimated Dam Level after generation of energy for the day at 24 Hrs. = E K = L Mtrs.
(Source: Compiled from NHPC Manuals, Annual Reports of NHPC Ltd. & NHPC News)
FOR EXAMPLE:
Dam water Level at 00:00 Hrs. (A)

= 1187.50 Mtrs.

Previous Day Inflow as per Daily Generation Report (B)

= 3.15 Cumecs

Water Collected in Reservoir in 24 Hrs. as previous day water inflow for the next
day ( C ) = B * 24 * 60 * 60 Cubic Mtrs.

= 3.15 * 24 * 60 * 60 = 272160 Cubic

Mtrs.
Water quantity required in cubic Mtrs. to fill up one Mtr. from current level as per Design Data
in Reservoir corresponding to current reservoir level range ( D ) = 3058.22 Cubic Mtrs.
Water Level increase in Dam ( E )

= (A+(C/( D * 100) Mtrs.


= (1187.50+(272160/( 3058.22 * 100) = 1188.39 Mtrs.

Energy required to be generated as per daily target ( F )


Capacity of one machine

= 0.498 MU
= 40 MW

Energy generated by one machine in 24 Hrs. ( G )


Water required by one machine ( H )

= (40 * 24)/1000 = 0.96 MU


= 8.125 Cumec.

43

Water inflow required for Energy generation i.e. 0.498MU by the three machines
I = H*F/G Cumec

= 8.125 *0.498 /.96 = 4.22 Cumec.


Water required to produce the energy i.e.0.498 MU J = I * 24 * 60 *60 Cubic Mtrs.
= 4.22 * 24 * 60 * 60 = 364608 Cubic Mtrs.
Water Level used for energy generation

= J/( D*100) Mtrs

= 364608/ (3058.22*100) = 1.1922 Mtrs


Estimated Dam Level after generation of energy for the day at 24 Hrs.
L = E K Mtrs = 1188.39 1.1922 = 1187.20 Mtrs.
By using the variables such as current water level, anticipated river water inflow, daily /
next day target energy generation etc. in this method we can calculate the water reservoir level for
the day at 24 Hrs. or for the next day at 24 Hrs.
Therefore, using this forecasting method we can generate the maximum energy by
optimum utilization of precious water as per daily / monthly generation targets and maintain the
reservoir water level as per design energy. Table no. 5 given below showing the estimated water
level in Dam after 24 Hrs. corresponding to energy generation.
Table No. 5
(Forecast of maximum Power Energy (MU) and Dam water Level (Mtrs.) for the day / next day)

(Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)
44

Table No. 6
(Water Capacity in Reservoir Corresponding to Dam Water Level Range)

(Source: Compiled from Yearly Reports of SEWA II Power Station)


2. Using the Load Flow Study to find out the information such as reactive powers at generator
buses, magnitudes of load bus voltages, real and reactive power flow on transmission lines,
other variables being specified which are essential for continuous monitoring of the current
state of the system.
EXPLANATION AS BELOW:
The basic equation for power-flow analysis is derived from the nodal analysis equations
for the power system. For a 4-bus system,
11
21
[
31
41

12
22
32
42

13
23
33
43

14 1
1
24 2
2
34 ] [3 ]= [3 ]
4
44 4

where are the elements of the bus admittance matrix,

are the bus voltages, and Ii are the

currents injected at each node. The node equation at bus i can be written as
==1

45

Relationship between per-unit real and reactive power supplied to the system at bus i and the
per-unit current injected into the system at that bus:
= = +
where is the per-unit voltage at the bus; - complex conjugate of the per-unit current
injected at the bus; and are per-unit real and reactive powers. Therefore,
= ( + )/

= ( )/

( ) = =1

= =1

Let = | | < and = | | <


Then ( ) = =1| | | || | < ( + )
Hence, = =1| | | || | ( + )
And = =1| | | || | ( + )
3. Optimum utilization of precious water resource for Power Generation and UI (Unscheduled
Interchange) Charges.
EXPLANATION:
Unscheduled Interchange in a time-block for a generating station or a seller means its total
actual generation minus its total scheduled generation and for a beneficiary or buyer means its
total actual drawl minus its total scheduled drawl.
The charges for the Unscheduled Interchanges for all the time-blocks shall be payable for
over drawl by the buyer or the beneficiary and under injection by the generating station or the
seller and receivable for under drawl by the buyer or the beneficiary and over-injection by the
generating station or the seller and shall be worked out on the average frequency of the time
block.

2.6

STATISTICAL TOOLS:
(a) Pie Charts.
(b) Bar Charts
(c) Line Charts

2.7

LIMITATIONS OF THE STUDY:

It is easy to find and collect operational & maintenance data of machine, however, one need to be
aware of the limitations the data may have and the problems that could arise if these limitations
are ignored:

46

Operational and Maintenance data of machine can be general and vague.

The data has been taken w.e.f. 29th September 2010 when SEWA - II Power Project

became operational and upto 31th March 2016. The data is the mixture of both old as well as new.

The study is based on the secondary data and the limitation of using secondary data may

affect the results.

The sample used to generate the Operational & Maintenance data may be collected from

Central Electricity Authority [CEA], Other Hydro Organizations & Various Regional Load
dispatch Centre [RLDC].

This study merely focused on production and operation management function but the

other management function not covered.

2.8 DIRECTION FOR FURTHER RESEARCH:


The hydroelectric industry has been termed "mature" by some who charge that the technical and
operational aspects of the industry have changed little in the past years. Recent research
initiatives counter this label by establishing new concepts for design and operation that show
promise for the industry. A multi-year research project is presently testing new turbine designs
and will recommend a final turbine blade configuration that will allow safe passage of more than
98 percent of the fish that are directed through the turbine. Further, in the SEWA II Power
Station has to install this type new design turbine for the beneficial of local people. The DOE
(Department of Energy) also recently identified more than 30 million kilowatts of untapped
hydroelectric capacity that could be constructed with minimal environmental effects at existing
dams that presently have no hydroelectric generating facilities, at existing hydroelectric projects
with unused potential, and even at a number of sites without dams. Hence, further feasibility
studies to be made to trap the undeveloped hydroelectric potential of the Sewa River for the best
interest of Corporation and for development of the Nation, Further research opportunities exist to
refine evaluation index system and optimization model, to establish evaluation standards and to
analyze impacts of optimization algorithm on evaluation results.

47

(CHAPTER - 3)
HYDRO POWER USING
PRODUCTION AND OPERATION
MANAGEMENT FUNCTIONS

CHAPTER -3: HYDRO POWER USING PRODUCTION


AND OPERATION MANAGEMENT FUNCTIONS
1.1 OPERATING STRATEGIES :

Maintain its position as the leader:


As the largest power Generation Company in India NHPC Ltd is looking to
increase its capacity to 75000 MW by 2017.

Adopt the new technology:


NHPC Ltd is also looking to utilize other sources of power generation in the next 5
years namely Coal, Wind and nuclear energy to generate electricity.

Resource management :
The company will look to continue with their stringent recruitment and retention policy
which has provided it with the best minds in the country.

Environment management :
Being the leader in its trade the company will look towards fulfilling its corporate
social responsibility and contributing towards the environment.

3.2

SUPPLY CHAIN MANAGEMENT:


Water is stored in reservoir when rain falls and the same is supplied to the machines through
head race tunnel & Penstock.

Generated electricity is taken care Power Grid which is a government company.

Supply of electric products are done by BHEL which is also a government owned enterprise.

Chief water source is SEWA River.

3.3

ISSUES AND CHALLENGES:

HUMAN RESOURCES:
People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut
of HR policies at NHPC. NHPC are strongly committed to the development and growth of all our
employees as individuals and not just as employees. NHPC currently employ approximately
10000 people at NHPC.
Competence building, Commitment building, Culture building and Systems building are
the four building blocks on which our HR systems are based.

48

RECRUITMENT:
NHPC believe in the philosophy of 'Grow your own timber'. Our 'Executive Trainee'
scheme has been introduced with the objective of raising a cadre of home grown professionals.
First Division Graduate Engineers/ Post graduates are hired through nation-wide open
competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid
induction training.

CAREER ADVANCEMENT AND OPPORTUNITIES:


NHPC have a well established talent management system in place, to ensure that NHPC
deliver promise of meaningful growth and relevant challenges for our employees. The talent
management system comprises PERFORMANCE MANAGEMENT, CAREER PATHS and
LEADERSHIP DEVELOPMENT.

REWARDS AND RECOGNITIONS:


From inception, created a culture of rewards and recognitions through celebration of
various achievements and events and recognizing the contributions behind such success.

INNOVATE, CREATE, COMPETE:


Also, introduced numerous initiatives which seek to enhance the creativity, innovation,
functional aptitude and teamwork of our employees. These initiatives include National Open
Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business
Minds and Medha Pratiyogita (a quiz for our employees). A management journal called
Horizon is published quarterly to enable the employees to share their ideas and experiences
across the organization.

KNOWLEDGE MANAGEMENT IN NHPC:


To meet our ultimate objective of becoming a learning organization, an integrated
Knowledge Management System has been developed, which facilitates tacit knowledge in the
form of learning and experiences of employees to be captured and summarized for future
reference.

TRAINING AND DEVELOPMENT:


NHPC subscribes to the belief that efficiency, effectiveness and success of the
organization, depends largely on the skills, abilities and commitment of the employees who
constitute the most important asset of the organization.
NHPC Training Policy envisages a minimum of 7 man days of training per employee per
year. NHPC have developed own comprehensive training infrastructure.
49

EDUCATION UP-GRADATION SCHEMES:


To meet the academic aspirations of employees and match them with the needs of the
organization, NHPC has tie-ups with institutes of repute like IIT Roorkee etc. NHPC sponsors
fixed size batches of employees who are inducted into these courses based on their performance
rating in the company and their performance in the entrance exam conducted by the respective
institute. Unlike other study leave and sabbaticals, employees undergoing these courses do not
forego their salary or growth during the duration of the course.

SEEKING FEEDBACK:
NHPC actively seek and encourage employee feedback to ensure that HR interventions
and practices remain relevant and meaningful. NHPC regularly conduct Employee Satisfaction
and Organizational Climate Surveys.

AWARDS AND RECOGNITION:


To adapt best practices and enhance the efficiency at Power Station a scheme Station of
the Day was introduced. Based on the Cumulative counts earned by Power Station in the year
the Power Station achieving the highest count during the Year is nominated for the Best Rated
Power Station for the year.
Hydro Power Stations Performance Award Scheme has been conceived with a view to
accord recognition to Hydro Power Stations based on the best all round performance covering all
activities including operation & maintenance, reporting, financial and environmental and
management aspects.
The main objectives for introduction of the Performance Award Scheme are:

To develop the spirit of competitiveness among the various power stations.

To encourage optimum availability of generating units.

To encourage power stations to undertake planned maintenance etc. with proper


maintenance planning.

To optimize the down time of units under planned maintenance and minimize the down
time of units under forced outage.

To adhere to regulations, grid code, etc.

To submit the reports, information, etc. timely.

To adhere to financial management.

To motivate & encourage the employees to improve the efficiency & productivity and
show better results and include the feeling of contribution in the growth of the
cooperation.

50

To establish best practices and benchmarks in operational efficiency.

To compete with other power stations in India.

Sewa II Power Station NHPC has been awarded with Best Power Station during the financial
year : 2013 14 and 2014 2015. NHPC derive immense satisfaction from the awards NHPC
receive and the resulting recognition they bestow. The awards are key indicators and milestones
on our HR journey, and reinforce our HR philosophy and practices.

ADVANTAGES OF OPERATIONS MANAGEMENT:


Operations management can help an organization implement strategic objectives,
strategies, processes, planning and controlling. One of the primary focuses of operations
management is to effectively manage the resources of an organization so that the organization can
maximize the potential of the products or services produced or offered by the company.
Depending on the organization, operations management can include managing human resources,
materials, information, production, inventory, transportation, logistics, purchasing and
procurement.

DISADVANTAGES OF OPERATIONS MANAGEMENT:


Operations management depends on many different components within the organization
working together to achieve success. Even if operations management implements an effective
plan, if operations management does not carry out the plan properly, the plan will most likely fail.
Within an organization, mistakes often occur during the chain of events from manufacturing to
sale. Therefore, operations management requires the coordination of operation functions,
marketing, finance, accounting, engineering, information systems and human resources to have
success within the organization. This poses the primary disadvantage of operations management
because if an organization's individual components do not work well together, operations
management will have limited success within the organization.

3.4

REPORTING:
Report is a self-explanatory statement of facts relating to a specific subject and serves the

purpose of providing information for decision making and follow up actions. It is a systematic
presentations of ascertained facts about a specific event / subject. Report is a summary of findings
and recommendations about a particular matter / problem. Report is for the guidance of higher
authorities including company executives and directors. Report facilitates timely decisions and
follow up measures.

51

3.4.1 DEFINITIONS :
PLANNED OUTAGE (PO): Outage planned in advance for annual maintenance, periodical /
routine maintenance / checking, and inspection. Any outage planned in advance because of
abnormal operating parameters i.e. high temperature, oil level, excessive leakage from shaft seal
etc. should come under forced outage and not in planned outage.
FORCED OUTAGE (FO): Outage due to tripping caused by abnormal operating parameters
like high temperature / oil level etc, stopping / closure of units for inspection / investigation,
rectification of abnormal operating parameters / behavior / condition.
MISCELLANEOUS OUTAGE (MO): Outage due to reasons beyond control of generating
stations or for which generating stations are not responsible e.g. tripping of units due to failure of
grid, line problems, delay in synchronization due to voltage mismatch, backing due to grid
constraints / requirements, closure of units due to high PPM, less availability of water etc. Outage
of less than 15 minutes due to tripping and resynchronization should also come under
miscellaneous outage.
Plant Availability Factor (PAF): The plant availability factor (PAF) of a power plant is the ratio
of its actual output over a peak period of time, to its potential output if it were possible for it to
operate at full nameplate capacity continuously over the same period of time. To calculate the
plant availability factor, take the total amount of energy the plant produced during a peak period
of time and divide by the amount of energy the plant would have produced at full capacity.
AVAILABILITY in relation to a project, means the capacity of the project, including the
generating units, to generate power on availability of water; and the annual availabilities of a
project shall be determined as per the following formula:Percentage Annual Availability =
Where,

___

____

are the capacities in Mega Watts of different units, and


are the hours for which the respective units were available for

operation during the year.


DESIGN ENERGY means the quantum of energy which could be generated in a 90 percent
dependable year with 95 percent availability of installed capacity of the station:
Explanation- If the total energy generation in the years for which hydrological data is available
(say N years) is arranged in descending order, the (N+1) X 0.9th year would represented the 90
percent dependable year. The 90 percent dependable year is a year in which the annual energy
generation has the probability of being equal to or in excess of 90 per cent of the expected period
of operation of the scheme.

52

INSTALLED CAPACITY means the summation of the name plate capacity of the generating
units in the station or the capacity as decided in consultation with the Authority from time to time
considering the up rating, derating, etc. as may be applicable.
PROJECT includes the complete hydro power generating facility covering all components such
as dam, intake water conductor systems, power station, generating units of the scheme as
apportioned to power generation and decided by the Authoriy.
SECONDARY ENERGY means the quantum of energy generated in excess of the design energy
on an annual basis in the station;
STATION means a hydro generating station having an installation of one or more hydro
generating units including reversible units.
DEEMED GENERATION If the station has achieved the normative Availability level in a
contract year, but actual energy generation falls short of design energy for reasons solely
attributable to hydrology, the energy charges for generation upto design energy shall be payable
to the Generating Company during the first seven years of operation.
In case of reduced generation due to reasons beyond the control of Generating Company and nonavailability of Board's transmissions lines or on receipt of backing down instructions from the
concerned Regional Electricity Board and it results in spillage of water, the energy loss on
account of such spillage shall be considered as deemed generation limited to the design energy.
INFIRM POWER Sale of electricity prior to commercial operation of the unit, any revenue from
such sale shall be taken as reduction in capital expenditure and not as net revenue.

3.4.2 DAILY REPORTING:


Shift In-Charge will prepare the following different reports at the end of the day i.e after
24:00 hrs. All these reports are emailed / Faxed to Corporate control room (CCR) Faridabad and
also, uploaded in ERP system

Daily Generation Transmission Report.

UI (Unscheduled Interchange) Charges report.

Hourly Station Data.

Hourly Reservoir Level Data.

Hourly Station Parameter Report

Tripping Report etc.

3.4.2.1 DAILY GENERATION AND TRANSMISSION REPORT:


GENERATION (MU):
Mention all generation figures in million units (MU)

53

Calculate deemed generation i.e. Deemed generation is loss in generation due to


transmission constraint / grid conditions or due to restrictions imposed by grid regulatory body,
which results in spillage of water.
TRANSMISSION (MU):
Mention all generation figures in million units (MU)
STATION DATA:

WEATHER
Mention weather observed during the day
e.g. CLEAR/SUNNY/CLOUDY/RAINY/FAIR.

AUXILIARY CONSUMPTION, KWH:


Mention total auxiliary consumption in kWh.

AVERAGE LOAD, MW:


Calculate average load MW as follows:
Average load MW = Total Daily Generation (MU) X 1000/24.

MAXIMUM / MINIMUM VALUE:


Mention maximum and minimum value observed during the day for MW, MVAR, Bus

voltage (kV), Frequency (Hz) while unit (s) is / are in operation. Do not mention zero as
minimum value observed during tripping / shutdown.

TOTAL INFLOW, WATER UTILIZED,SPILLAGE:


Mention all data in cumecs.
Mention average total inflow adding inflow of all tributaries and averaging hourly data in

cumecs.
Calculate water utilized for generation as follows:
Water utilized, cumecs = Q X L /U
Where, Q = Rated discharge in cumecs for each machine.
L = Average load during the day in MW
U = Rated capacity of each machine in MW
Mention average spillage through spillway gates / sluice in cumecs
Calculate average spillage as follows:
S = S1 X t1 + S2 X t2 +-----------+Sn X tn
-------------------------------------------24
Where, Sn = Spillage in Cumecs
tn = Time in hours

MAX./MIN. RESERVOIR LEVEL, M:


Mention maximum / minimum reservoir level observed during the day.
54

MIN. INTAKE LEVEL, M:


Mention minimum intake level observed during the day.

SILT(PPM):
Mention silt content measured / observed. In case silt content is not being measured

regularly give estimated value. For e.g. <10PPM, <20 PPM like that.

OUTAGE DETAILS:
COMMUNICATION STATUS: PLCC/P&T/LDST/WIRELESS
Strike out whichever is not applicable from OK / as mentioned. For e.g. OK / as-

mentioned.
Mention OK, only if all communication modes are through.
Mention the problems / fault in remarks in case of problem in any mode.

UNIT / LINE:
Identify unit by its number, for e.g. Unit 1, Unit 2 and so on.
Identify line by its name as well as number (in case of more than one line to same

substation).
Mention the unit / line only for which outage has occurred and not all the units / lines with
outages as *NIL*.

OUTAGE TYPE PO/FO/MISC:


Clearly specify cause of miscellaneous outage i.e. less availability of water, high PPM,

grid constraints etc.

TRIPPING / OUTAGE TIME RESTORED AT TOTAL OUTAGE TIME:


Mention time in format Hrs:min.
Mention PR (previous report) in column TRIPPING / OUTAGE TIME if outage is

continuing from previous day, which will be the case during annual maintenance, or any outage
stretching beyond 24 hrs. Mention NR (not restored) in column RESTORED AT if unit / line is
not restored by 24:00 hrs.
Mention total outage time for the day report belongs to and it should not exceed 24 hrs.

ENERGY LOSS:
Calculate energy loss as follows
=

MU

Where , N = capacity not available due to outage, in MW


t = total outage in hours.
will be less than or equal to

55

REASONS:
Mention exact reasons(s) and conclusion of investigation / inspection and remedial

measures taken in *Reasons* column. For e.g. High TGB temp, investigation reveals low oil level
in sump, sump topped up.
Do not give vague reasons / remarks like unit under PTW / unit under mechanical
maintenance / shutdown taken by electrical maintenance group etc.
Mention communication code / reference in case closing down of unit as per instruction of
RLDC.

TRIPPING DETAILS:
Strike out whichever is not applicable from NIL / as per tripping report.
Report tripping details as per applicable format.

REASONS FOR LESS GENERATION / REMARKS:


Report reasons in case of less generation like less inflow, grid constraints, restrictions by

RLDC, breakdown of unit etc.


Report problem / fault in any communication mode in this column.
Report any abnormalities pertaining to generating station.

Fig: 23 FORMAT OF DAILY GENERATION AND TRANSMISSION REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)
56

3.4.2.2 HOURLY STATION DATA REPORT:


1. HOURY DATA:
Mention readings observed in respective columns of format.
2. OPERATION PARAMETERS:
Mention maximum current (Amp) observed during the day for each unit and also
corresponding normal value.
Mention maximum temperature in C and corresponding hrs for components as per
format.
Mention any abnormal operation parameters noted and its normal value. In case no
abnormality is noted mention NO.

Fig: 24 FORMAT OF HOURLY STATION DATA REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)

57

Fig: 25 FORMAT OF OPERATION PARAMETERS REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)

58

Fig: 26 FORMAT OF HOURLY WATER LEVEL REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)

59

Following tables gives the information of Actual Generation corresponding (MU) to Generation
Targets, actual Plant Availability Factor (PAF) corresponding to target Plant Availability Factor
(PAF), Unscheduled Interchange (UI), Actual Transmission and NRLDC Schedule since
commission of SEWA II Power Station.

Table No. 7

60

(Source: Compiled from Annual Reports of NHPC Ltd. & NHPC News)

61

3.4.2.3 TRIPPING REPORT:


1. TRIPPING REPORT NO.:
Number each report serially prefixing abbreviation of month. Restart numbering afresh for
each month. For e.g. SEWA-II/TRIP/AUG-1 and so on.
2. SERIAL NO.:
Number each tripping serially as 1,2,3 etc. and A,B,C, or I,ii,iii.
Record tripping in the order they occur and not at random i.e. record tripping that occurs
first in the day as Sr. No. 1 and so on.
3. NAME OF LINE/UNIT:
Identify unit by its number, for e.g. Unit 1, Unit 2 and so on.
Identify line by its name as well as number (in case of more than one line to same
substation).
4. TRIPPING TIME:
In case the DFR / SER are operational, then time of opening of breaker recorded in them
should be given as tripping time. And if, they are not operational, then record the time by station
clock as accurate as possible.
Mention PR (previous report) in column TRIPPING TIME if outage is continuing from
previous day.
5. RESTORATION TIME:
Mention NR (not restored) in column RESTORED AT if unit / line is not restored by
24:00 hrs.
6. TOTAL OUTAGE:
Write the value (Restoration Time Tripping Time) in the column in the format Hrs:min.
7. LOSS OF LOAD / GENERATION, MW:
In case of tripping of line write the load in MW that was flowing through that line just
before tripping.
In case of unit write the load in MW that the unit was generating just before tripping.
8. RELAY FLAGS:
Write the type of relay; its identification number and flags operated in following format
RELAY TYPE / NAME [IDENTIFICATION NUMBER]
[FLAG DETAIL 1,2,3 and so on]
The flags or indications corresponding to relays operated in the station should be recorded in the
column Relay Flags Reporting end. In case of tripping of lines, the relays operated at other
end of the line should be recorded in column Relay Flags Other end. For tripping of units
write NIL in this column.
62

Fig: 27 FORMAT OF TRIPPING REPORT


(Source: Compiled from Tripping Reports of SEWA II Power Station)

3.4.2.4 UNSCHEDULE INTERCHANGE REPORT:


Daily UI report has been prepared after 24:00 Hrs. First of all data i.e. block wise actual
generation and frequency collected from Special Energy Meters (SEM) with the help of Data
Collecting Device (DCD). Then data from DCD uploaded in computer with the help of L & T
63

software and the same converted into excel form. After obtaining the fifteen minutes block wise
data of frequency, actual generation and NRLDC injection schedule, the UI amount calculated.
The rate for calculation of Unscheduled Interchange Generation is based on frequency.

Fig: 28 FORMAT OF UNSCHEDULE INTERCHANGE REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)

64

Fig: 29 FORMAT OF DEVIATION CALCULATION REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)

Fig: 30 FORMAT DAILY ANALYSIS REPORT


(Source: Compiled from Daily Reports of SEWA II Power Station)

65

3.4.3 MONTHLY REPORTING:


In-charge (Operations) prepares and emails the following reports to In-Charge Corporate Control
Room on 1st of each month for the previous month:
Generation Data at a Glance.
Monthly Machine Availability.
Outage Details.
Tripping Details at a Glance.
Deemed generation Report.
3.4.3.1 GENERATION DATA AT A GLANCE:
Mention Generation figures in MU without rounding off.

Fig: 31 FORMAT OF GENERATION DATA AT A GLANCE REPORT


(Source: Compiled from Monthly Reports of SEWA II Power Station)

66

3.4.3.2 MACHINE AVAILABILITY REPORT:

TOTAL HOURS:
Mention total hours of month to which report belongs i.e., 720:00 Hrs. for month of 30

days, 744:00 Hrs. for month of 31 days and so on.

RUNNING HOURS:
Mention running hours of each unit. It should tally with sum of daily running hours for the

month.

PLANNED OUTAGE:
Mention planned outage of each unit. It should tally with sum total of daily planned

outage for the month.

FORCED OUTAGE:
Mention forced outage of each unit. It should tally with sum of daily running hours for the

month.

MISCELLANEOUS OUTAGE:
Categorize miscellaneous outage into three categories, which are
High PPM
Less Availability of water
Grid constraints etc.

Sum total of daily miscellaneous outage for the month should tally with sum total of all
three categories.
AVAILABILTY IN HOURS:
Mention availability after totaling running hours and miscellaneous outages.
% AVAILABILTY:
Calculate % availability as follows:
% Availability = (Available Hours / Total Hours ) X 100

Fig: 32 FORMAT OF MONTHLY MACHINE AVAILABILTY REPORT


(Source: Compiled from Monthly Reports of SEWA II Power Station)

67

the

3.4.3.3 OUTAGE DETAILS FOR THE MONTH:


Summarize outage details reported daily and prepare the report unit wise.

Fig: 33 FORMAT OF OUTAGE DETAILS REPORT


(Source: Compiled from Monthly Reports of SEWA II Power Station)

68

3.4.3.4 TRIPPING DETAILS AT A GLANCE:


Summarize tripping details of the month and prepare the report date wise.

Fig: 34 FORMAT OF TRIPPING DETAILS AT A GLANCE REPORT


(Source: Compiled from Monthly Reports of SEWA II Power Station)

3.4.3.5 DEEMED GENERATION REPORT:

CONSTRAINTS / BACKING DOWN CODE:


Mention the constraints for backing down like hunting, transmission limitation, high

frequency, low voltage etc. Mention code given by RLDC for backing down.

69

TIME:
Mention starting time and normalization time for each backing down unit wise.

BACKING DOWN PERIOD:


Mention backing down period in hours. For e.g. 2 Hrs : 45 Min = [2+] = 2.75 Hrs.

CAPACITY BACKED DOWN:


Mention capacity backed down / taken out of grid (in MW) unit wise due to constraints /

backing down instruction.

ENERGY LOSS:
Mention energy loss for each backing down
Calculate loss as follows
!

"

MU

Where, B = Capacity backed down, in MW.


t = backing down period, in Hrs.

TOTAL ENERGY LOSS DURING THE DAY:


Calculate total generation loss during the day after summing up all the energy losses

to backing down.

SPILLAGE ENERGY DURING THE DAY:


Calculate the spillage energy during the day.

DEEMED GENERATION:
Mentioned deemed generation in MU. Round-off value after three digits.

Fig: 35 FORMAT OF DEEMED GENERATION REPORT


(Source: Compiled from Monthly Reports of SEWA II Power Station)

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due

3.4.3.6 TARIFF OF HYDRO POWER GENERATING STATIONS:


The two-part tariff for sale of electricity from hydro power generating stations shall
comprise the recovery of annual capacity charge consisting of interest on loan capital,
depreciation and energy charges consisting of interest on loan capital, depreciation and energy
charges consisting of operation and maintenance expenses, tax on income reckoned as expenses,
return on equity and cess / levy on water charges at actuals and interest on working capital at a
normative level of generation.

3.4.3.7 SCHEDULING AND GENERATION DESPATCH:


The Scheduling and Despatch of all the generating stations owned by National Hydro
Power Corporation is done by the respective Regional Load Despatch Centres which are the apex
body to ensure the integrated operation of the power system grid in the respective region. All
these Load Despatch Centres comes under Power System Operation Corporation Limited
(POSOCO).

Fig: 36 FORMAT OF INJECTION SCHEDULE REPORT


(Source: Compiled from NRLDC web site)

71

3.5 UNSCHEDULED INTERCHANGE (UI) CHARGES:


India is one of the fastest growing economies in the world. Providing adequate electricity
supply to fuel high growth rates has been one of the major challenges before the country. Despite
of steady increase in power generation capacity over last few decades, demand growth has far
outstripped supply growth. This has led to a continued energy shortage over the years. Even at
present, the energy shortage and peak demand shortage are estimated to be 9.3% and 12.6%
respectively. The power deficit situation in the country was further aggravated by problems like
fuel supply bottlenecks, high transmission and distribution losses, poor financial health of public
utilities and a volatile electric grid with wide and rapid frequency fluctuations. Government of
India has taken some path breaking initiatives during the last decade to overcome these problems.
Electricity Act, 2003 was enacted to introduce competition and efficiency in Indian power sector.
The act envisages de-licensing of generation, unbundling of vertically integrated public utilities,
introducing open access and allowing private participation in transmission and distribution sector.

3.5.1 DEFINITIONS:
1.

Actual Drawal : In a time-block means electricity drawn by a buyer, as the case may be,
measured by the interface meters.

2. Actual Injection: In a time-block means electricity generated or supplied by the seller, as the
case may be, measured by the Interface meters.
3. Beneficiary: A person purchasing electricity generated from a generating station.
4. Buyer: A person, including beneficiary, purchasing electricity through a transaction
scheduled in accordance with the regulations applicable for short-term open access, mediumterm open access and long-term access.
5.

Deviation: In a time-block for a seller means its total actual injection minus its total
scheduled generation and for a buyer means its total actual drawal minus its total scheduled
drawl.

6. Gaming: In relation to these regulations, shall mean an intentional mis-declaration of


declared capacity by any seller in order to make an undue commercial gain through Charge
for Deviations.
7. Load Despatch Centre: Means National Load Despatch Centre, Regional Load Despatch
Centre or State Load Despatch Centre, as the case may be, responsible for coordinating
scheduling of the buyers and the sellers in accordance with the provisions of Grid Code.
8. Open Access The Electricity Act, 2003, provides for open access for private generators and
bulk consumers. Open access is a mechanism that allows generators to sell power to the
highest bidders while consumers can source their needs from the most economic seller.

72

9. Scheduled Generation: At any time or for a time block or any period means schedule of
generation in MW or MWh ex-bus given by the concerned Load Despatch Centre.
10. Scheduled drawal at any time or for a time block or any period time block means schedule
of despatch in MW or MWh ex-bus given by the concerned Load Despatch Centre.
11. Seller means a person, including a generating station, supplying electricity through a
transaction scheduled in accordance with the regulations applicable for short-term open
access, medium-term open access and long-term access.
12. Time-block means a time block of 15 minutes, for which specified electrical parameters and
quantities are recorded by special energy meter, with first time block starting at 00.00 hrs.

3.5.2 CHARGES FOR DEVIATIONS:


The charges for the Deviations for all the time-blocks shall be payable for over drawal by the buyer
and under-injection by the seller and receivable for under-drawal by the buyer and over-injection by the
seller and shall be worked out on the average frequency of a time-block at the rates specified in the table
below as per the methodology specified in clause (2) of this regulation:
Table No.8
(Charge for Deviation Corresponding to Grid Frequency)

Source: Compiled from Daily Report, Annual Reports of NHPC Ltd. & NHPC News
(Charges for deviation for each 0.01 Hz step is equivalent to 35.60 Paise/kWh in the frequency range
of 50.05-50.00 Hz, and 20.84 Paise/kWh in frequency range 'below 50 Hz' to 'below 49.70 Hz)

73

3.5.3 BEFORE AVAILABILITY BASED TARIFF & UNSCHEDULED INTERCHANGE


Prior problem in the Indian power sector was not only the shortage of power but also the
difficulty in performing grid operations due to acute indiscipline shown by the generators as well
as the beneficiaries. The incentives to the generator were linked to actual generator and not on
availability. The generators could pump as much power in the grid as they could irrespective of
the frequencies and still get acknowledged for the wastage of the valuable resource. The load
serving SEBs would compare the variable cost of their generator to the composite cost of the
external generator causing a skewed dispatch. The regional grid operators ironically had a
horrifying time trying to get generators backed down to protect the turbines of the same generator
causing the situation. On the other end the stated utilities could overdraw from the grid even
during deficit and still escape creating a chaos and despair all around.
3.5.4 BENEFITS ARISING FROM UI IMPLEMENTATION:
Huge benefits can be incurred by following the UI mechanism of tariff both on the
monetary side as well discipline side. Listed are some of the benefits of the UI mechanism.
1. UI is a real time pricing mechanism: UI rate is dependent on frequency signal received
by every generator. Each generator then reacts to this frequency change and adjusts their
supply to reach a new allowable frequency level. The decreasing returns by the deviations
from the scheduled supply/drawal makes each generator/drawer think before deviating
from the scheduled supply/drawal. The collective action thus plays a vital role in the game
of making the frequency stable at the equilibrium level. This results in a win-win situation
for all the stakeholders.
2. UI can be used for Merit Order Despatch: A perfect market is the one which does not
have any one player in it who can guide the proceedings of the market. This tells that
every player in a perfectly competitive market is small enough and is aware of the market
conditions. Each generator is aware of the UI mechanism and in real time the UI rate
applies to all the utility transactions. Each utility has its say in the market and no one can
undermine its rights in real time mechanism. This tends to dispatch least cost power first
than the other.
3. UI increases efficiency of the grid: Grid efficiency is definitely increased by meeting
merit order despatch, charging utilities and beneficiaries for deviating from the scheduled
supply/drawal, incentive for withdrawing the load during the peak hours etc.
4. Capacity best matched with load by UI mechanism: It tends to match the
demand/supply by provision of incentives/disincentives and for the want of generating
more revenues.
5. Power exchange along with UI mechanism: The proponents of the power trading
74

market of India say that the lack of investor confidence in the Indian market is due to
absence of the organized day ahead market. Lack of transparency is also a big deterrent
towards the same. Introduction of UI has supported the development of a trading market
and exchanges which serve for day ahead schedule and real time trading by bringing all
the consumers and sellers together on a single platform with standardized contracts,
trading procedures and bid formats. This would also lead to much transparency in the
pricing mechanism and the confidence of investors is bound to increase.
6. Implications of deviating from scheduled supply/drawal known: If the implications of
deviating from a law or a rule are well known the crime/violation of a rule can be
controlled on a large scale. This is what UI has done to the Indian power industry in a
short time and the progress is being continued at a larger pace. Recent amendments have
narrowed the frequency to 50.2-49.5Hz and the overall charges payable for over
drawal/under injecting at a frequency lower than 49.5Hz has been increased sharply. This
would further help in strengthening the grid discipline. As an example, Uttarakhand
Power Corporation Limited, due to the rapid industrialization of the state is finding it very
difficult to keep pace of power capacity addition with the growth observed. It has paid
more than 370 Crores as UI charges in the period April 2008 to October 2009 due to
overdrawing from the central grid. This figure in itself acts as a boost towards power
sector development.
7. Improvement in grid parameters such as Frequency and Voltage
8. A mechanism for harnessing Captive & Co-generation: If the existing
captive/cogeneration facilities are harnessed within the grid the demand/supply gap in the
country can be substantially bridged off. This can be done very quickly by stipulating that
any injection or drawal by such plants will be paid for as per the frequency linked UI rate.
9. More consumer load can be catered at any time: This is due to the incentives
given for reducing the load during the peak hours. Those who dont have very important
use of power during peak load period can shed their load and gain from it. This is very
closely related to the Demand Side Management.
10. UI prevents costly damage to electrical & mechanical equipment:
Frequency variation is the very cause of damage to electrical equipments and indirectly to
the mechanical equipments too. When frequency management is looked in to so deeply
the damage to the equipments is also reduced drastically.

75

(CHAPTER - 4)
CONCLUSIONS /
RECOMMENDATIONS

CHAPTER -4: CONCLUSION AND SUGGESTIONS


4.1

CONCLUSIONS AND SUGGESTIONS:


India is endowed with enormous economically exploitable and viable assessed to be about

84044 MW at 60% load factor (148700 MW installed capacity). Total annual energy potential of
600 billion units has been accessed and so far only 15% of the potential has been explored. Over
one billion people in South Asian Association for Regional Cooperation (SAARC) are amongst
the poorest in the world and lack even the basic social amenities including electricity. Per capita
demand of electricity in Asia is only 1250 KWhr, which is half of the world average. A certain
study indicates that the need of consumption of minimum 1500 KWH of electricity to maintain
even marginal standard of living. Against this, the per capita consumption of electricity in India is
only 350 KWH, which speaks of immediate and urgent need of planning and undertaking
accelerated hydro development in the country.
India, with no large known oil and gas reserves, is independent on indigenous coal as the
main in feed for electricity production. This is leading to depletion of non-renewable source of
energy on one hand and environmental degradation as well. Switching to clear fuels, wherever
available is therefore to be taken on top priority. In India vast potential exists for Hydrodevelopment from white coal i.e. water. Over the years due to paucity of funds, the regional
power development had led to imbalance in the hydrothermal mix to 25:75 as against desired
ratio of 40:60. It is well known that hydropower can give excellent peaking support and prevent
suboptimum level of operation of thermal plants i.e. burning expensive oil off peak hours. As per
Central Electricity Authority (CEA) 15th Electric Power survey, the present peak demand is
63853 MW and projected peak demand is 95757 MW for the Year 2001 2002.
The recent Research And Development (R & D) innovations in the field of hydro
dynamics make it possible to derive higher outputs from the existing hydraulic space in turbines
by employing higher specific speed and better efficiency profiles on one hand and use of better
class epoxy insulation on the other which makes it possible to use higher conductor size in the
existing stator slots for higher outputs. The older plants hold substantial potential of up rating
proposals cost effective. Besides enhancement of peaking capacity, there would be extra energy
benefit in the case of run-off-the-river scheme. The other good thing about run-off-the-river
scheme is that it creates lesser impact on the environment and lesser no. of people are distributed
in the area.
The regional grids in India suffer from problems of wide frequency and voltage

76

fluctuations, frequent grid failure, uneconomic operation, problems in evacuation of power etc.
Hydropower can give relief from most of these problems. India has emerged as one of the fastest
growing economies in the world. The Government of India has identified the power sector as a
key sector of focus to promote sustained industrial growth with a mission Power for All by
2022.
Hydropower is more economical, less polluting, less damaging to the environment and a
renewable source of energy. Developing hydropower enhances energy security and there is no
fuel cost during the life of the project. In Hydroelectric Power Station, energy is harnessed from
water by running it from a higher height to a lower height. Hydropower stations are capable of
instantaneous starting and stopping and are able to accommodate various loading alternatives.
This helps to improve the reliability of power systems and is ideal for meeting demand during
peak times.
The Government has set high priority for development of Hydropower power keeping in mind the
potential and availability of water resources. The Government of Indian (GOI) recently
introduced a three stage process for the development of new hydroelectric projects in the central
sector. The new stage driven process aims to reduce the time and cost overruns of hydroelectric
projects.

Stage I: Survey and investigation of project site, and preparation of pre-feasibility report.

Stage II: Detailed investigation, preparation of detailed project report (DPR) and preconstruction activity including land acquisition, and

Stage III: Execution of the project after investment decision through Pre-Public
Investment Board (PIB) / Cabinet Committee on Economic Affairs (CCEA).
Tariff are determined by reference to Automatic Frequency Control (AFC) which

comprise primary energy charges and capacity charges and are determined by return on equity,
depreciation, interest on loans, interest on working capital and operation and maintenance
expenses. The Hydro power policy of 2008 lays emphasis on increasing private investment in the
development of hydraulic projects. The policy aims at attracting private funds by encouraging
joint ventures with private developers and the use of Independent Power Producer (IPP) model
besides promoting power trading and speeding up the availability of statutory clearances. This
presents a significant opportunity for power generation companies, both in the public and the
private sector.
The trust in Government and its bureaucracy has been eroding in India thereby leaving
more avenues for contested domains. It has been very difficult transforming the government
intentions to produce electricity from the large water infrastructure after the Sardar Sorvar Project
debacle in the early 1990s. The small hydro projects are being cautiously implemented by the
77

Governments. However in some cases the adverse socio economic and environmental impacts
of large dams can be mitigated through informed decision making, transparency and engagement
of all stakeholders. In all probability, the advantages and disadvantages of hydro-power
structures, large or small, have to be discussed with people transparently. The present social and
environmental assessments of the hydro projects are flawed from many angles which trigger real
and imaginary conflicts of interest. To settle the Peoples concern, after two years debate the
Indian Cabinet has recently passed the National Policy on Rehabilitation and Resettlement, 2007.
In particular, there has to be clear recognition in all decision making related to dams that a
balance needs to found between the needs for use of renewable energy, and the minimization of
possible harmful effects on the environment especially mountain environments where most of
the hydro-potential resides. Mountain regions have particular potential for use and production of
renewable energy, not only hydro, but also biomass, solar, geothermal or wind; clearly, the
adverse environmental effects on fragile mountain ecosystems need to be carefully assessed and
prevented before developments take place. Also, possible social issues between upstream (often
poor mountain communities) and downstream communities (often the main beneficiaries of
energy production) need to be addressed.
NHPC Limited has several units, which are engaged in operation of generating electricity
or are under construction stage. The company has strong operating efficiency as reflected in
average capacity index of 88.6% for 2015 2016 and largest hydro power generator capacity of
5041.2 MW. The company has got into long term power purchase agreements for major portion
of capacity under construction. Being a mini ratna the company can enter into greater autonomy
for undertake new projects without Government of India approval subject to investment ceiling of
Rs.500cr. The majority of NHPCs revenues are derived from sales of power to the state
electricity entities, as per the directives of the Government of India. The projects are located in
complex terrain and harsh climate. Potential upside is limited as the tariffs are regulated by the
Government of India.
Sewa-II Power Station is located on river Ravi at Maska (Basholi) bordering Himachal
Pradesh and has been constructed by the NHPC at a cost of Rs. 1061 crore and has been
completed in seven years by National Hydro Power Corporation (NHPC). The dam of the Power
Project is situated at a village Ghatti about 80 kms from Basohli in Kathua district and 150 kms
from Lakhanpur. J&K State is getting free 13 per cent power out of the total power generated by
Sewa-II Power Station. J&K State has vast hydropower potential of which major portion is yet to
be developed . Out of the total power generation capacity of 20,000 MWs in Jammu and
Kashmir, only 2456.20 MWs has been harnessed in the State, Central and Private sector to
harness the maximum possible potential for power. NHPC is playing an important role in
78

developing the potential and is associated with the development of hydropower in Jammu &
Kashmir. So far NHPC has commissioned six projects in the state and one number project is
under construction.
The 120 MW Sewa-II Power Station of NHPC, Mashka (Jammu and Kashmir) has
exceeded its MoU targets set for Excellent ratings both in terms of Power Generation as well as
Plant Availability Factor (PAF) for the year 2015-16. At the end of Financial Year 2015-16, the
SewaII Power Station has generated 597.086 MUs (Million Units) which is 14.82% higher than
its target of 520 MUs. The Power Station also recorded highest PAF among 18 Power Stations of
NHPC i.e. 97.97% which is 11.6% higher than our target of 91.80%.
Sewa II Hydro Power Station has created a benchmark in technology utilization,
efficiency and effective utilization of resources.
It has been achieving records right from its synchronization.
It is one of the Power plant in India where maximum Automation is done in its operations.
It is the Hydro power plant where Pelton Wheel turbine successfully working and
generating the power for nation.
It has also achieved great environment standards where water is a raw source for
generating the Electrical Power.
It been maintaining excellent Corporate Social Responsibility (CSR) by providing good
compensation as cash, providing employment for the locals on a contract basis,
construction of roads, drainage systems, drinking water supply, hygienic conditions,
hospitals, schools, etc.
Sewa II Hydro Power Station, NHPC has followed the principles of production and
operation management quite well and also maintained good relationship within its Micro
as well as Macro environments.
There should be more Involvement of management at all levels with effective creation of
policies, vision, Mission, values, goals and support, communicated and implemented
throughout the Organization.
There should be training of senior executives in managing for quality.
It should evaluate plans for expansion in order to meet the Power needs of India as well as
to create more employment.

79

BIBLIOGRAPHY / REFERENCES

BIBLIOGRAPHY / REFERENCES
REFERENCE BOOKS:
1. S.N. Chary

: Production and Operations Management

2. K.C. Arora

: Production and Operations Management

3. S. Anil Kumar

: Production and Operations Management

PERIODICALS:
1.

International Journal of Operations & Production Management

2.

NHPC NEWS

3.

O & M Manuals for Generator, Turbines, Transformers and Auxiliaries.

4.

UI Rules.

5.

Commissioning Report.

6.

O& M Generation Targets.

7.

ABT Rules.

8.

Grid Code.

9.

Hand Books of NHPC

10. Magazines of NHPC.

REPORTS:
1.

Daily Reports of NHPC.

2.

Annual Reports of NHPC.

3.

Periodical Reports of Operations & Production Management.

IGNOU BOOKS /STUDY MATERIALS:


1.

MS 5

: Management of Machines and Materials.

2.

MS 08

: Quantitative Analysis for Managerial Applications.

3.

MS 10

: Organizational Design Development and Change.

4.

MS - 11

: Strategic Management.

5.

MS - 51

: Operations Research.

6.

MS - 52

: Project Management.

7.

MS - 53

: Production/Operations Management.

8.

MS - 57

: Maintenance Management.
80

9.

MS - 58

: Management of R&D and Innovation.

10.

MS - 95

: Research Methodology for Management Decisions

REFERENCES:

Sumitkumar., Hydro Power in India Potential and the Way Ahead 2nd Annual
Conference on Hydro Power in India, April 15-16 2013.

Ramanathan. K., Abeygunawardena. P., Hydropower Development in India, a Sector


Assessment Publication Stock No. 031607, 2007.

Action Plan for the Development of the Power Sector in the North East Region & Sikkim,
January 2006, Ministry of Power, Government of India.

Proceedings of the Third Annual Conference on Hydro Power in India January 17-18,
2006 organized by Powerline, New Delhi.

National Electricity Policy (2005), Ministry of Power, Government of India.

Central Electricity Authority, Hydro Development Plan for 12th Five Year Plan, New
Delhi, Sept 2008.

Central Electricity Authority, Power Scenario at a Glance, , Central electricity Authority,


New Delhi, April 2010.

Arun Kumar, Small Hydropower Development: Recent Indian Initiatives International


Conference Water India-V, New Delhi, Nov 3-4, 2008.

WEB SITES:

www.nhpcindia.com

http://www.studymode.com

http://indianjournalofeconomics.com/april2015.htm

http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C35600620

http://www.nhpcindia.com/presentation-hin.htm

http://www.conserve-energy-future.com/HowHydroPowerPlantsworks.php
81

http://www.energynext.in/open-accessadvantage-bottleneck/

http://kalyan-city.blogspot.in/2010/11/what-is-report-meaning-features-or.html

https://en.wikipedia.org/wiki/nhpc_limited

http://www.mbaofficial.com/mba-courses/operations-management/what-is-the-role-of-aproduction-manager-in-operations-management/

http://www.abbreviations.com/

www.powermin.nic.in

www.hydroworld.com

www.indiainfoline.com

NEWS PAPER:

Business Standard

Economic Times

Financial Express

The Tribune

The Hindu

The Times of India

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