* NHPC has been conferred Mini Ratna status by the Government of India.
* Name of the Company has been changed from National Hydroelectric Power Corporation Ltd. to NHPC Limited.
* Crossed profit figure of Rs. 1000 crore and installed capacity of 5000 MW. Registered a net Profit of Rs. 1,002 crore against Rs. 925 crore during the previous financial year.
* Poised to pay highest ever dividend.
* Achieved an all time high sales turnover of Rs. 2,311 crore as against Rs. 1,963 crore during the previous year.
* Achieved 100% revenue realization of Rs. 2270 crore.
* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating equivalent to Sovereign rating for external borrowings from reputed International rating agencies.
* Memorandum of Association of the Company has been amended to include trading, power development including forward, backward or horizontal integration ancillary and other allied industries.
* Commissioned three projects namely the 520 MW Omkareshwar (JV) in Madhya Pradesh, 390 MW Dul Hasti in J&K and 510 MW Teesta Stage-V in Sikkim.
* Generated 14811.35 Million Units electricity against 13048.74 Million Units generated during previous corresponding year, thereby registering an increase of 13.5 %.
* The Power Stations achieved a Capacity Index of 96.13 % against the MoU target of 94.50 %.
* Implementing India’s largest hydroelectric project, the 2000 MW Subansiri Lower Project in Arunachal Pradesh.
* Plans to become 10000 MW plus company by 11th Plan.
* Revised MoA signed with Govt. of Arunachal Pradesh for implementation of 3000 MW Dibang Multipurpose Project, 750 MW Tawang-I Project and 750 MW Tawang-II Project by NHPC.
* Recommendation of PIB for Govt. sanction and TEC of CEA obtained for the 3000 MW Dibang Multipurpose Project. Dr. Manmohan Singh, Hon’ble Prime Minister of India laid the foundation stone of the Project on 31.1.2008.
* Govt. sanction accorded for the 330 MW Kishanganga Project in Jammu & Kashmir.
* DPR of the 520MW Teesta Stage-IV Project in Sikkim submitted to CEA for accord of TEC.
* PIB has recommended the 530 MW Kotli Bhel-II Project in Uttarakhand for Govt. sanction. Environment clearance has also been accorded by Ministry of Environment and Forest for the Project.
* MoU signed with Govt. of Manipur for implementation of 66 MW Loktak Downstream Project by NHPC in Joint Venture with Govt. of Manipur. Ministry of Environment and Forest has accorded pre-construction activities on the project.
* Environment clearance has been accorded by Ministry of Environment and Forest for 195 MW Kotli Bhel-1A, 320 MW Kotli Bhel-1B, 120 MW Vyasi Projects, all in Uttarakhand and 1000 MW Pakal Dul Project in Jammu & Kashmir.
* Implementing Enterprise Resource Planning (ERP) of IFS AB, Sweden across the organization.
* Four Independent Directors have been appointed on the Board of NHPC.
Annual Review 2007-08
Highest ever turnover and net profit, commissioning of three projects, viz. 520 MW Omkaershar in Joint Venture in Madhya Pradesh, 390 MW Dul Hasti in Jammu & Kashmir, 510 MW Teesta Stage-V Project in Sikkim, achieving the highest ever net profit and turnover, surpassing the MoU generation target, achieving 96.13 % capacity index, record realization of energy bills from various beneficiaries, bagging more consultancy assignments, obtaining Mini Ratna status, amending the Memorandum of Association of the Company, changing the name of the Company, implementing ERP solutions and making go live Energy Sales and Accounting module of ERP, obtaining Government sanction for the 330 MW Kishanganga Project in Jammu & Kashmir, obtaining PIB recommendation for the 530 MW Kotli Bhel-II Project, obtaining TEC from CEA for the 3000 MW Dibang Multipurpose Project, submission of DPR of the 520 MW Teesta Stage-IV Project to CEA for according TEC, obtaining Environmental clearance from MOEF for 5 projects totaling 2165 MW, Singing of Revised MOA with Govt. of Arunachal Pradesh for implementing 3000 MW Dibang Multipurpose Project, 750 MW each Tawang – I and Tawang-II Projects, signing of MoU with Govt. of Manipur for implementing the 66 MW Loktak Downstream Project, speeding up construction activities on all the Projects under construction are some of the major achievements of NHPC during the Financial year 2007-08.
Financial Performance during 2007-08
* Registered a net profit (after tax) of Rs. 1,002.06 crore against the net profit (after tax) of Rs. 9,24.80 crore registered during the previous financial year.
* Achieved an all time high sales turnover of Rs. 2,311.47 crore as against Rs. 1,962.76 crore achieved during the year 2006-07
* Poised to declare an all time high dividend for the year 2007-08. An interim dividend of Rs. 100 crore for the year 2007-08 has already been paid to Government of India.
* Better business management coupled with prudent financial policies like efficient sales realization, better grid management, efficient treasury management systems etc. have resulted in sound financial position which made the Company self reliant for the resources generation for ambitious capacity addition program in XI and XII Five year plans.
* No budgetary support from Government during the year 2007-08.
* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating equivalent to Sovereign rating for external borrowings from reputed international agency.
* Signed financing agreements with PFC aggregating approximately Rs. 4,000 crore at most competitive terms.
* Necessary financial closure of all ongoing projects in place.
* Likely to come up with IPO in August 2008.
Power Generation
During the period under review, the operating Power Stations of NHPC generated 14811.35 Million Units exceeding the annual MoU target of 13906.95 million units for ‘very good’ rating, as compared to 13048.74 Million Units generated during the same period of the previous year, showing an increase of 13.51 %.
The machine availability of the operating power stations measured as Capacity Index is 96.13 % exceeding the annual MoU targets of 94.50 % for ‘Excellent’ rating
Sale of energy & Realization
The sale rate of NHPC power during 2007-08 varied from 75 paise per unit (Salal Power Station) to 310 paise per unit (Chamera-II Power Station). The average sale rate is 173 paise per unit.
Revenue realization from all the 27 beneficiaries of NHPC operating power stations during 2007-08 is 100% (Rs. 2,270 crore)
Projects commissioned
NHPC has added 1420 MW during the period under review by commissioning three projects.
The 390 MW Dul Hasti Power Station was declared under commercial operation with effect from 7.4.2007. The Power Station was dedicated to the Nation on 26.4.2008 by Dr. Manmohan Singh, Hon’ble Prime Minister of India. The beneficiaries of the Power Station are Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Uttarakhand, Rajasthan, Delhi and Union Territory of Chandigarh.
The 510 MW Teesta Stage-V Project in Sikkim has been put under commercial operation during February/ March 2008. The beneficiaries of the Project are DVC, Bihar, Orissa, Jharkand, West Bengal and Sikkim. Power from this Power Station is being supplied to the beneficiaries @ Rs. 1.62/unit.
The 520 MW Omkareshwar Project (under joint venture with Govt. of Madhya Pradesh) was commissioned during November 2007 against scheduled date of Feb.’08.
Projects under Construction
- Sewa –II H.E. Project (120 MW), J&K
Ø Complete Dam excavation and 86 % concreting of Dam is over.
Ø In HRT, 9370 m (92.92%) excavation has been completed.
Ø Excavation of Surge Shaft and Powerhouse has been completed and 80.30% concreting has been completed in Power House.
Ø Excavation and concreting of Pressure Shafts is in progress.
2. Teesta Low Dam H.E. Project Stage-III (132MW), West Bengal
Ø In Barrage Bays 3 to 7 and Power House, excavation is over and about 97.25% and 62.45% concreting has been done respectively.
Ø Intake Structure excavation is almost over and 97.60% concreting has been completed.
Ø About 91.10% excavation of TRC has been completed.
Ø Draft Tubes for all the 4 units have been erected.
Ø Project suffered major setback due to unprecedented high intensity flash floods breaching the cofferdams in July’07, causing flooding of all work areas. Again in Sept.’07, floods re-occurred. However, works resumed on all fronts within a minimum time.
3. Parbati H.E. Project Stage–II (800 MW), Himachal Pradesh
Ø Excavation of 25.30 Km (80.35%) of Head Race Tunnel completed out of the total 31.50 Km length.
Ø 13.15% concreting in Head Race Tunnel completed.
Ø 13.85% concreting in Power House completed, but the back hill slope failure occurred in Feb.’07. Slope stabilization work is in progress.
Ø 54.70 % concreting of Dam and Intake structure has been completed.
4. Subansiri (Lower) H.E. Project (2000 MW), Arunachal Pradesh
Ø Power House excavation was completed on 28th August 2007.
Ø Diversion Tunnels completed.
Ø Construction of 1st Stage Coffer Dam and subsequently river diversion of river Subansiri was successfully achieved in December 2007.
Ø Excavation of Dam foundation started in January, 2008.
5. Uri –II H.E. Project (240MW), J&K
Ø Concreting up to River Bed Level in Dam is completed.
Ø In Open Channel & Desilting Chamber 88.70% excavation has been completed.
Ø Head Race Tunnel day lighted & 71.70% of Tail Race Tunnel heading excavation completed.
Ø 61.20% of Power House excavation completed.
6. Parbati-III H.E. Project (520 MW) , Himachal Pradesh
Ø 88.50% excavation in Rock Fill Dam completed.
Ø 34.80% construction of Cut off Wall completed.
Ø 25.95% of Head Race Tunnel excavation completed
Ø Reaming of Surge Shaft completed.
Ø Benching of Power House started.
Ø 57% Tail Race Tunnel heading excavation completed.
7. Chamera –III H.E. Project (231 MW), H.P
Ø 55.95% excavation of Dam Completed.
Ø All adits completed and 70.75% HRT excavation completed.
Ø MAT to PH, Pilot tunnel to PH cavern and adit to PS bottom completed. Power House excavation has been completed.
Ø 92% of TRT excavation completed.
Ø E&M work awarded to M/s Alstom.
Ø HM works awarded to M/s Om Metals-SPML(JV) .
8. Teesta Low Dam H.E. Project Stage-IV (160MW), West Bengal
Ø So far, 86.38% excavation for Dam Spillway has been completed and concreting is in progress.
Ø Cellular Wall & Power House excavation has been completed and in Tail Race Channel 76.35% excavation has been completed.
Ø HM and E&M packages were awarded to M/s BHEL and M/s Om Metals respectively.
Ø Heavy floods on 17.7.2007 breached Coffer Dam. Cellular Wall, Dam & Powerhouse area got inundated. Restoration Work got affected due to reoccurrence of flash floods on 27th July 2007. The restoration work in most of the fronts completed.
Ø Excavation of PH has been completed and concreting is in progress.
9. Nimoo Bazgo H.E. Project (45MW) , J&K
Ø The project is being constructed by NHPC in such highly inclement weather conditions of Leh & Ladakh in J&K.
Ø River diversion work completed on 22.11.07.
Ø 35 % excavation work of Power House Completed.
Ø 51% excavation work of Dam Completed.
Ø E&M works awarded to M/s BHEL.
10. Chutak H.E. Project (44MW), J&K
Ø The project is being constructed by NHPC in such highly inclement weather conditions of Leh & Ladakh in J&K.
Ø River diverted on 22.11.07. Excavation of all Adits has been completed.
Ø Excavation of HRT heading (29.85%) completed.
Ø Excavation of PH ventilation tunnel completed. Excavation of PH and TC 46% completed.
Ø E&M work awarded to M/s BHEL.
11. Kishenganga H.E. Project ( 330 MW), J&K
Ø CCEA approval for the project accorded on 20.07.2007 at estimated cost of Rs. 2238.67 crore (Nov.’05 PL)
Ø The Project is proposed to be completed in 7 years i. e by July 2014.
Ø Revised cost estimate for Rs 3733.53 crore (PL Sept.07) and material for draft PIB note has been submitted to MOP on 11.2.08. Meeting in this regard was taken by JS (FA) on 3.3.2008. As decided in this meeting, revised cost estimate has been submitted to CEA for vetting
Ø 208m of Diversion tunnel stands excavated departmentally.
Ø Notification under section -17 for acquisition of private land at PH site issued by J&K Govt.
Consultancy Services
NHPC has been providing consultancy services in the area of hydro power development for generating additional revenue for the Corporation in the form of consultancy business. The clients to whom the consultancy services are being provided include agencies / organizations both in public and in private sector in India and abroad. During the financial year 2007-08, consultancy assignments amounting to Rs. 2156 lakh and total payment amounting to Rs. 3011 lakh were received.
Rural Electrification Projects
Under Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), NHPC has taken up Rural Electrification works in 27 districts of States of West Bengal, Bihar, J&K, Chhattisgarh and Orissa with an estimated cost of about Rs. 2,580 crore. The scope of work of all the districts covers 32400 villages and service connection to 20.80 lakh of BPL households. Out of the 27 districts, NHPC has awarded work in 14 districts. In addition to the above, tendering process has been initiated in balance 13 districts which have been sanctioned recently.
Rural Roads Project
Under the Pradhan Mantri Gram Sadak Yojna (PMGSY), NHPC has undertaken construction of rural roads and its maintenance in six districts of Bihar namely East Champaran, Muzaffarpur, Sheohar, Sitamarhi, Vaishali and West Champaran. NHPC has prepared and submitted DPR for 427 number of roads with a total length of 2259 km. Against this, approval for 304 number roads with a length of 1741 km has been received and work on 495 km road has been completed so far.
Research & Development activities
NHPC has actively considered the Clean Development Mechanism (CDM) for its hydro power Projects. Project Idea Notes (PINs) for 15 projects have been prepared. Host country approval for Nimoo-Bazgo and Chutak Project in J&K have been obtained from National CDM Authority. Agreement between M/s. MGM International & IDBI has been signed for development of Nimoo-Bazgo and Chutak Projects as CDM Projects and sale of certified Emission Reductions (CERs) generated by these projects up to 31st December, 2012. Data collection and feasibility studies on other projects for consideration of CDM benefits are in process.
With a view to assess and optimize the power station’s performance, Energy Audit of NHPC Power Stations is being conducted.
NHPC has signed an MoU with WBGEDCL for execution of the 3.65 MW Durgaduani mini Tidal Project in West Bengal. The Project has been approved and MNRE has conveyed the sanction of the project at an estimated cost of Rs. 48 crore (without navigational lock) excluding agency charges and applicable taxes.
NHPC is one of the participating agencies in conjunction with CPRI & SJVNL in the National R&D Project on “Development of Silt Erosion Resistant Material for Turbines of Hydro Generators” by National Metallurgical Laboratory, Jamshedpur which is under execution.
Enterprise Resource Planning (ERP)
With the objective of high level of interaction, co-ordination and synchronization across all functions and to enhance NHPC's capability to respond to new needs in a dynamic business environment, NHPC is implementing ERP of IFS AB, Sweden across the organization covering Mega Processes such as Project Management, Operations & Maintenance, Finance & Accounts, Procurement & Contracts, Energy Sales Accounting, Human Resource and Engineering & Quality Assurance out of which Energy Sales Accounting has been made Go Live as scheduled on 29th February, 2008. The first phase of ERP implementation is scheduled to be completed on 15th October, 2008. The ERP project when implemented shall facilitate improved performance, productivity and profitability in the organization.
To support the ongoing implementation of ERP solution in NHPC, a scalable and state-of-the-art, Tier-III enterprise class data centre is being developed in the NHPC office complex at Faridabad. This Greenfield data centre building would be equipped with advanced access control and climate control devices along with redundancy in both power and communication links to ensure uninterrupted operations. Also, it is aimed to be compliant with the provisions of the Energy Conservation Building Code, 2007 to ensure optimum utilization of energy resources.
NHPC has also initiated actions to augment existing IT & Communication infrastructure in terms of Local Area Networks, servers, desktops, security and satellite based Wide Area Network to support the ERP initiative.
Efforts made in the area of IT & Communication in the organization have brought about considerable transformation in terms of performance, efficiency and productivity.
Human Resource Development
NHPC has conceived and initiated Business Process Reengineering & Restructuring exercise aimed at evolving new organization design, optimizing Human Resource and assessing and articulating Business Strategy through a reputed Consultant. Several organization development initiatives have been implemented including revisiting of HR Policies on the basis of an extensive organization climate survey. NHPC has implemented Productivity Linked Group Incentive Scheme (PLGI) which envisages variable pay up to 12.5% of the annual basic pay of an employee. Aiming to provide social security to the employees, the NHPC Social Security Scheme has been introduced which envisages equal contributions from the employee and the employer. In the event of death/ permanent disability, the employee / his family can get up to Rs. 10 lakh under the above scheme. The Company has also implemented a number of welfare measures for the benefit of the people living in and around its Power Stations as a part of Corporate Social Responsibility. During the period, cordial industrial relations prevailed due to which not even a single man day was lost.
Awards and Recognitions won
During the period under review NHPC has won many accolades in the form of awards as mentioned below:
- Special Jury Award at the Asia Pacific Global HRM Summit for “Innovative HR Practices”.
- BML Munjal Award instituted by the Hero Group for “Innovative Learning & Development Practices”.
- Amity Award for CSR.
- SCOPE Excellence Award for CSR.
- 2nd Prize at the WIPS (Women in Public Sector) Meet in the category of Best Performing Enterprise for Women Empowerment Initiatives.
Quality Assurance
During 2007-08 Corporate Office and six Power Stations (Uri, Tanakpur, Chamera-I, Salal, Dhauliganga and Baira Siul) were certified for Occupational Health & Safety management System e.i. OHSMS-18001. In addition, Rangit Power Station was certified ISO-9001 and Dhauliganga Power Station was certified ISO-14001.