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COMPANY ANALYSIS NTPC LTD.

About the Company : NTPC ltd.

Introduction

NTPC Limited (formerly National Thermal Power Corporation) is the largest Indian state-owned electric utilities company based in New Delhi, India. It is listed in Forbes Global 2000 for 2011 ranked it 348th[3] in the world. It is an Indian public sector company listed on the Bombay Stock Exchange in which at present the Government of India holds 84.5% (after divestment the stake by Indian government on 19 October 2009) of its equity. With a current generating capacity of 39,174 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017. It was founded on 7 November 1975.
On May 21 2010, NTPCL was conferred Maharatna status by the Union Government of India.[4]
NTPC's core business is engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad.
The total installed capacity of the company is 36,014 MW (including JVs) with 16 coal based and 7 gas based stations, located across the country. In addition under JVs(Joint Venture), 6 stations are coal-based, and another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 27,535 MW, 3,955 MW through gas, 1,328 MW through Hydro generation, about 1400 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.
NTPC has been operating its plants at high efficiency levels. Although the company has 19% of the total national capacity it contributes 29% of total power generation due to its focus on high efficiency. NTPC’s share at 31 Mar 2001 of the total installed capacity of the country was 24.51% and it generated 29.68% of the power of the country in 2008–09. Every fourth home in India is lit by NTPC. As at 31 Mar 2011 NTPC's share of the country's total installed capacity is 17.75% and it generated 27.4% of the power generation of the country in 2010–11. NTPC is lighting every third bulb in India. 170.88BU of electricity was produced by its stations in the financial year 2005–2006. The Net Profit after Tax on 31 March 2006 was 58.202 billion. Net profit after tax for the quarter ended 30 June 2006 was 15.528 billion, which is 18.65% more than that for the same quarter in the previous financial year. It is listed in Forbes Global 2000 for 2011 ranked it 348th[5] in the world.
Pursuant to a special resolution passed by the Shareholders at the Company’s Annual General Meeting on 23 September 2005 and the approval of the Central Government under section 21 of the Companies Act, 1956, the name of the Company "National Thermal Power Corporation Limited" has been changed to "NTPC Limited" with effect from 28 October 2005. The primary reason for this is the company's foray into hydro and nuclear based power generation along with backward integration by coal mining.

Vision

“To be the world’s largest and best power producer, powering India’s growth.”

Mission

“Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society.”

Core Values – BE COMMITTED

B
Business Ethics
E
Environmentally & Economically Sustainable
C
Customer Focus
O
Organisational & Professional Pride
M
Mutual Respect & Trust
M
Motivating Self & others
I
Innovation & Speed
T
Total Quality for Excellence
T
Transparent & Respected Organisation
E
Enterprising
D
Devoted

Key people

Shri Arup Roy Choudhury, Chairman & Managing Director since September 01, 2010, has an illustrious career spanning over 32 years of outstanding contribution in the fields of engineering, general management, strategic management and business leadership. He is a Graduate in Civil Engineering from Birla Institute of Technology, Mesra and a Post-Graduate in Management and Systems from IIT-Delhi. A keen learner of the latest professional developments, he is currently pursuing a doctorate in ‘Select Study of Project Performance Metrics in Indian Construction Industry’ from IIT-Delhi.

Shri Choudhury brings to NTPC the dynamism of a leader with proven abilities to achieve transformational changes. He seeks to position the Maharatna enterprise on course to become the largest and best power producer in the world.

Shri Choudhury has the distinction of becoming the youngest Chief Executive Officer of a Central Public Sector Enterprise (CPSE) at the age of 44 years when he joined as Chairman & Managing Director, National Buildings Construction Corporation Limited (NBCC) on April 03, 2001. Prior to that he had worked in prominent public and private sector companies since 1979, when he started his career.

Shri Choudhury’s rich and varied contribution of over 32 years has been recognized by prestigious professional, academic and Government institutions, both national and international.

His vision, leadership and industriousness transformed NBCC, which was a sick company with negative net-worth and salary back-log in 2001, into a blue-chip enterprise having Schedule ‘A’ and ‘Miniratna’ status bestowed upon it by the Government of India. The stunning turnaround of the Company brought about by him has enabled NBCC’s turnover grow about 10 times and net-worth over 500 times during his tenure of nine-and-a-half years at the helm. He pulled NBCC out of the abyss and catapulted it into the distinguished league of ‘Top Ten CPSEs’. Under him, NBCC broadened its business horizons. Its entry into power project development dovetails very productively with his new role as CMD, NTPC.

As Chairman, Standing Conference of Public Enterprises (SCOPE), the apex body of central public sector enterprises (CPSEs), Shri Choudhury has been effectively leading policy advocacy for greater empowerment of these enterprises. He is also promoting the cause of greater professionalism, competitiveness, societal commitment, transparency and global-benchmarking among the CPSEs.

Shri Choudhury believes in growth and excellence through proactive approach and his dictum is “Sankalp Shuddha Hi Siddha” i.e. if your intentions are pure, you are bound to succeed.

Shri Choudhury has a strong commitment for the well-being of the society at large. His sharp focus on corporate governance and environmentally sustainable growth has been demonstrated in concrete actions and substantial benefits.




Shri A.K. Singhal, Director (Finance) since August 2005, a Chartered Accountant, comes with rich experience of 29 years of Corporate Finance Management. He is also a member of All India Management Association (AIMA) and Institute of Internal Auditors (IIA). Prior to joining NTPC in 2001, he was the Executive Director (Finance) in National Fertilizers Limited (NFL) as head of Finance & Accounts department. He held various managerial positions in Krishak Bharati Cooperative Limited (KRIBHCO) and Engineering Projects of India Limited (EPIL). As Finance Director on the Board of NTPC, he is responsible for formulating financial strategies and plans to enable the company in achieving its Vision. He gives directions with respect to the entire gamut of Financial Management of the organization including timely financial resource mobilization at minimum possible cost from Domestic & Global sources including equity issues, optimum utilization of funds, formulation of company’s annual financial budget and undertaking budgetary controls. He is also responsible for designing internal control systems commensurate with the size of the organization and for ensuring compliance of such systems. Being responsible for compliances of Company Law and other statutory requirements, he also gives direction to the Corporate Governance framework of the company. After company became listed he has been acting as one of the vital links between the shareholders of the company and the rest of the Board. In recognition of his contribution, he was adjudged as the Best CFO in the Public Sector category by the Committee for Members in Industry (CMII) of ICAI for the year 2007-08.


Sh. I.J.Kapoor, Director (Commercial) since December’ 2008 is a Graduate in Mechanical Engineering and Masters in Business Administration (Marketing). He joined NTPC in 1978 as 3rd batch Engineering Executive Trainee (EET) and is the first EET to be on the Board of the Company. He has a rich and varied experience of over 32 years in the areas of Commercial, Engineering, Contracts & Materials Management, Project Management, Consultancy, Cost Engineering, Station Engineering and Quality Assurance & Inspection. Prior to his elevation as Director (Commercial), he was Regional Executive Director (National Capital), NTPC, responsible for management of ~ 3900 MW generating capacity, administering more than ¼th of NTPC’s turn over along with project implementation activities for 2x490 MW at Dadri Stage-II. As Director (Commercial), he is responsible for formulation & implementation of policies & strategies to ensure marketing of NTPC’s entire electrical output, appropriate pricing from regulatory authority and 100% & timely realization from customers, thereby generate adequate internal resources for the company to meet the future challenge of higher capacity addition. In addition, he is the Director In- charge of Consultancy and Business Development activities. He is also part time Chairman on the Board of Aravali Power Company Private Ltd. (1500 MW) and National Power Exchange Ltd. He is part time Director on the Board of PTC India Ltd., Meja Urja Nigam Private Ltd. (1320 MW), NTPC- BHEL Power Projects Private Ltd. and NTPC Vidyut Vyapar Nigam Ltd. He is responsible for successful implementation of National Solar Mission Phase-I. He is a Fellow of Institution of Engineers, India and Senior Member, IEEE, USA.


Sri B.P. Singh (55 yrs), Director(Projects), is a Graduate in Mining Engineering. He has rich and varied experience both in coal as well as power sector. He started his career in 1974 in coal mining sector firstly with Indian Iron & Steel Company and subsequently joined Bharat Coking Coal Ltd. He joined NTPC Ltd. in 1981 and worked in various capacities, at Corporate Centre and Power Projects, in the areas of Fuel Management, Coal Mining & Coal Washery. He was elevated as Executive Director (Coal Mining & Coal Washeries) in 2004. He played the pivotal role in formulation of NTPC’s overall strategy for fuel security. He has been instrumental in acquisition and development of fuel assets i.e. one Oil & Gas Exploration block under NELP V in Arunachal Pradesh, six coal mining blocks across various coalfields in the country besides two more blocks for joint operation through a 50:50 JV with CIL. He is also the Chairman of NTPC-SCCL Global Ventures Private Ltd. He joined the Board of the Company as Director (Projects) in Aug, 2009. Besides representing NTPC in various committees set up by Govt. of India on Integrated Coal Policy, fuels for Power Generation, Pricing of Coal, Techno-economics of using washed coal, etc. he has also been part of various Govt. teams & missions like U.K. Trade Mission, Indo–Australia Joint Working Group on Energy & Minerals, etc. He is also a 'Senate Member' of Dr. BR Ambedkar National Institute of Technology, Jalandhar, Expert Member’ on Research Council of “Central Institute of Mining & Fuel Research (CIMFR)” and represents NTPC as 'Member' in MGMI.


Shri S. P. Singh(57 Years), Director(HR), is a Graduate in Electrical Engineering from Madhav Institute of Technology & Science, JIWAJI University , Gwalior (year 1973- 74) and completed his schooling from the prestigious Colvin Taluqdar’s College, Lucknow.

Shri Singh joined NTPC in 1984 and worked for more than 25 years in Engineering Department, looking after various functions of Plant Engineering related Quality Assurance & Inspection, Project Layout engineering, Project Engineering etc. He served as ED (Corporate Contacts & Materials) and Chief Executive officer, of NTPC Electric Supply Company (A wholly owned subsidiary of NTPC) and lastly as ED (I/C) Human Resources during his tenure in NTPC.

He started his career in BHEL in 1975 as Engineer Trainee and worked for 9 years at BHEL, Hardwar in the Turbogenerator Design Department.


Shri N.N.Misra (55 years), Director (Operations), graduated in Electrical Engineering with Honours from Regional Engineering College, Rourkela in the year 1977. Shri Misra joined NTPC in 1977 as Executive Trainee (2nd Batch). He has an experience of 33 years in NTPC out of which 28 years were in the Design Department looking after the various functions of Electrical Design and Project Engineering beginning with the first Project of NTPC. He is actively associated with BIS and represents NTPC in Electro Technical Divisional Council of BIS. Shri Misra represents India in CIGRE (International Conference on Large High Voltage Electric System) for High Voltage Equipment and has contributed in many Study Committees and Working Groups of CIGRE. Shri Misra was involved in selecting and successfully implementing the first 765 KV Sub-Station of India at Sipat. He has a rich and varied experience having worked as Executive Director of the National Capital Region, Executive Director looking after Corporate Contracts & Materials, Executive Director looking after Human Resources and lastly Executive Director looking after Operation Services. Shri Misra also represents NTPC as Part-time Director in a number of Joint Ventures of NTPC.


Shri A.K. Jha has taken over as Director Technical, NTPC Sunday, 1st July, 2012. Shri Jha has more than 35 years of rich and varied experience in Power Sector in the areas of Erection and Commissioning, Project Planning & Monitoring, Project Management. He has also worked in area of Human Relations. A Mechanical Engineer from Ranchi University 1976 batch, with LLB from Delhi University in 1996. Shri Jha is a 'B' Level certified Project Manager from International Project Management Association (IPMA). He has presented paper on Project Management at IPMA World Congress in Rome in 2008 and delivered a Lecture on Project Management at International Congress in Tokyo in 2008. Widely travelled, Shri Jha has visited various Power Stations and manufacturing units in South Korea, UK, USA, Japan, Italy and Russia. He was earlier Regional Executive Director (NR) in NTPC. He takes over from Shri D.K. Jain, who superannuated on June 30th.

Organisational Structure

HR Vision

"To enable our people to be a family of committed world class professionals."

Recruitment

It believe in the philosophy of 'Grow your own timber'. Our 'Executive Trainee' scheme was introduced in 1977 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.

Rewards & Recognitions

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

Innovate, Create, Compete

It has  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 organisation.

Quality of Work-Life

NTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates.

Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.

Knowledge Management in NTPC

To meet our ultimate objective of becoming a learning organisation, 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 & Development

NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation, depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organisation.

Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have developed our own comprehensive training infrastructure.

Education Up-gradation Schemes

To meet the academic aspirations of employees and match them with the needs of the organisation, NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC 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

It seeks and encourage employee feedback to ensure that our HR interventions and practices remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organisational Climate Surveys.

Awards

It derives immense satisfaction from the awards we 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. NTPC has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.

Operations

In terms of operations, NTPC has always been considerably above the national average.

 

The table below shows the detailed operational performance of coal based stations over the years.

OPERATIONAL PERFORMANCE OF COAL BASED NTPC STATIONS
	Generation(BU)	PLF(%)	Availability Factor(%)
2011-12	222.07	85.00	89.73
2010-11	220.54	88.29	91.62
2009-10	218.84	90.81	91.76
2008-09	206.94	91.14	92.47
2007-08	200.86	92.24	92.12
2006-07	188.67	89.43	90.09
2005-06	170.88	87.52	89.91
2004-05	159.11	87.51	91.20
2003-04	149.16	84.40	88.79
2002-03	140.86	83.57	88.70
2001-02	133.20	81.11	89.09
2000-01	130.10	81.80	88.54
1999-00	118.70	80.39	90.06
1998-99	109.50	76.60	89.36

Be it the generating capacity or plant performance or operational efficiency, NTPC’s Installed Capacity and performance depicts the company’s outstanding performance across a number of parametres.

	NO. OF PLANTS	CAPACITY (MW)
NTPC Owned
Coal	16	30,855
Gas/Liquid Fuel	7	3,955
Total	23	34,810
Owned By JVs
Coal & Gas	7	4,364
Total	30	39,174

Regional Spread of Generating Facilities

REGION	COAL	GAS	TOTAL
Northern	8,515	2,312	10,827
Western	9,840	1,293	11,133
Southern	4,600	350	4,950
Eastern	7,900	-	7,900
JVs	2,424	1,940	4,364
Total	33,279	5,895

SWOT ANALYSIS OF NTPC

STRENGTH OF NTPC:

•The company has kept with itself sufficient liquid funds to meet any kind of cash requirement.

•Efficient working capacity of plants.

•Efficient and timely completion of projects.
•A minimum risk factor.
•Best-integrated project management systems.
•Company with an excellent record and high profits.
•An early starter-more than 30 years experience in power sector.
•Highly motivated and dedicated workers and officers- no industrialrelations problem.
•Excellent growth prospects with significant additions, modifications andreplacements.
•Employee-friendly personnel policies.
•Low project cost of NTPC’s plants.

WEAKNESSES OF NTPC:

•Depleting raw materials.
•Some of the Plant have become old and need investment in Renovation &Modernization.

OPPURTUNITIES:

•Demand and supply gap.
•Upcoming hydro and nuclear sector.
•Huge opportunity in consultancy services.

THREATS

•Rising prices of raw materials
•Huge competition from SEB’s, Reliance Energy, Tata power and other Private Development.
•Coming up of other sources of power.