NTPC (NATIONAL THERMAL POWER CORPORATION)

INTRODUCTION:
NTPC Limited is the largest thermal power generating company of India. A public sector
company, it was incorporated in the year 1!" to accelerate power de#elopment in the
country as a wholly owned company of the $o#ernment of India. At present, $o#ernment
of India holds %."& of the total e'uity shares of the company and the balance 1(." is
held by )IIs. *omestic +an,s, Public and others. -ithin a span of .1 years, NTPC has
emerged as a truly national power company/ with power generating facilities in all the
ma0or regions of the country. +ased on 1% data, carried out by *ata monitor 12, NTPC
is the 3
th
largest in terms of thermal power generation and the second most efficient in
terms of capacity utili4ation amongst the thermal utilities in the world.
NTPC5s core business is engineering, construction and operation of power generating
plants and also pro#iding consultancy to power utilities in India and abroad. As on date
the installed capacity of NTPC is 6!,7(7 8- through its 17 coal based 966,." 8-:, !
gas based 9.,"" 8- and 7 ;oint <enture Pro0ects 91,("7 8-:, NTPC ac'uired "(&
e'uity of the =AIL Power =upply Corporation Ltd 9=P=CL:. This ;< company operates
the capti#e power plants of *urgapur 916( 8-:, >ur,ela 916( 8- and +hilai 9!7 8-:.
NTPC5s share on .1 8ar 6((! in the total installed capacity of the country was 6(.1%&
and it contributed 6%."( & of the total power generation of the country during 6((3?(!.
1
GROWTH OF NTPC INSTALLED CAPACITY & GENERATION
INSTALLED CAPACITY GENARATION
NTPC has set new benchmar,s for the power industry both in the area of power plant
construction and operations. It is pro#iding power at the cheapest a#erage tariff in the
country. -ith its e@perience and e@pertise in the power sector, NTPC is e@tending
consultancy ser#ices to #arious organi4ations in the power business.
NTPC is committed to the en#ironment, generating power at minimal en#ironmental cost
and preser#ing the ecology in the #icinity of the plants. NTPC has underta,en
massi#eafforestation in the #icinity of its plants. Plantations ha#e increased forest area and
reduced barren land. The massi#e afforestation by NTPC in and around its >amagundam
Power station 963(( 8-: has contributed reducing the temperature in the areas by about
. degree centigrade. NTPC has also ta,en proacti#e steps for ash utili4ation. In 11, it
set up Ash 1tili4ation *i#ision to manage efficient use of the ash produced at its coal
stations. This 'uality of ash produced is ideal for use in cement, concrete, cellular
concrete, building material.
6
A ACentre for Power Bfficiency and Bn#ironment Protection 9CBNPBBP:A established in
NTPC with the assistance of 1nited =tates Agency for International *e#elopment
91=AI*:. Cenpeep is efficiency oriented, eco?friendly and econurturing initiati#e ? a
symbol of NTPC5s concern towards en#ironmental protection and continued commitment
to sustainable power de#elopment in India.
As a responsible corporate citi4en, NTPC is ma,ing constant efforts to impro#e the socio?
economic status of the people affected by its pro0ects. Through its >ehabilitation and
>esettlement programs, the company endea#ors to impro#e the o#erall socio?economic
status of pro0ect affected persons.
NTPC was among the first Public =ector Bnterprises to enter into a 8emorandum of
1nderstanding 98o1: with the $o#ernment in 1%!?%%. NTPC has been placed under the
CB@cellent category5 9the best category: e#ery year since the 98o1: system became
operati#e.
>ecogni4ing its e@cellent performance and #ast potential, $o#ernment of the India has
identified NTPC as one of the 0ewels of Public =ector CNa#aratnas5 ? a potential global
giant. Inspired by its glorious past and #ibrant present, NTPC is well on its way to reali4e
its #ision of being AA world class integrated power ma0or, powering India5s growth, with
increasing global presenceA. *espite certain issues and challenges, the o#erall economic
scenario and sectoral outloo, pro#ide an enabling climate for future growth and
profitability of the Company.
.
POWER SECTOR:
1. =e#eral measures ha#e been ta,en in line with the Blectricity Act 6((.. The National
Blectricity Policy has been notified. 8ain targets of National Blectricity Policy 9NBP:
areaD
E A#ailability of electricity to all households in fi#e years
E *emand to be fully met by 6(16
E 8inimum lifeline consumption of 1 unit per household per day
6. NBP lays down creation of ade'uate generation capacity with a spinning reser#e of at
least "& by 6(16. It also gi#es strong thrust to hydro de#elopment.
.. $uidelines on competiti#e bidding for procurement of power by distribution licensees
ha#e been notified. Terms and conditions for open access to transmission ha#e also been
notified. $uidelines for eligibility criteria for grant of parallel distribution license ha#e
been issued. Terms and conditions for electricity tariff for the "?year period commencing
April, (1, 6((7 are in force.
NTPC's STRATEGIES:
1.The company has short and long?term strategies to not only deal with the issues and
challenges but to con#ert the challenges into opportunities of enhancing corporate growth
and strength and become a world?class integrated energy utility.
6.Coal cons!"#$on %& #'( "o)(* s(c#o* has gone up considerably dri#en substantially
by higher PL) of coal based thermal power stations. 8assi#e capacity e@pansion plans
and increasing generation from e@isting plants indicate substantial shortage of power
grade coal in the future. Coal sector is ta,ing steps to speed up new coal mine?
de#elopments in the lF
th
Plan. -hile, import of coal for addressing the current shortfall
may be a short?term measure, there is a need to intensify mining acti#ities with infusion of
new participants, more capital and new technologies. Gour company is importing coal for
meeting the shortfall at Talcher =tage?II )ara,,a and =imhadri as a short?term measure.
7
6.1 The Company is going for coal mining in order to enhance its fuel security and
mitigate fuel ris,. -e ha#e been allotted one coal?mining bloc, and we ha#e applied for
many more. NTPC will adopt modern mining practices and state?of?the?art technologies.
The company is identifying coal pithead based integrated power pro0ects where the
Company will draw coal from its own mines for the power pro0ect. Applications for
allocation of coal bloc,s for a few such pro0ects ha#e been recommended by 8inistry of
Power to 8inistry of Coal.
.. The Company has achie#ed affordable price for 2awas and $andhar e@pansion on a
long?term basis through International Competiti#e +idding. CHeads of Agreement5
with $AIL for fuel supply to the C>a0i# $andhi Combined Cycle Power Pro0ect5.
..1 There is a need to further supplement these arrangements with reliable and cost
competiti#e gasILN$ supply arrangements. -e are engaged in strategies to ensure energy
supply as well as energy security -e ha#e decided to participate in the entire #alue chain
of N$ILN$ co#ering e@ploration, e'uity sta,es in gas fields, li'uefaction terminals,
transportation, re?gasification, etc. Accordingly, actions ha#e been initiated to ha#e
dialogue with prospecti#e countriesIorgani4ations. -e ha#e also participated in recent
bidding for bloc,s under the fifth round of NBLP /held by 8inistry of Petroleum and
Natural $as.
7. Fur efforts on forward integration will continue to gain momentum. -e plan to ac'uire
parallel distribution licenses in areas around our pro0ects. -e will also ta,e up
consultancy assignments in the field of distribution. Fur target is to increase our Power
trading #olume substantially. -e are engaged in our initiati#e of promoting the setting up
a state?of?the?art National Power B@change to facilitate power trading in the country.
7.1 All our bac,ward and forward integration initiati#es are primarily aimed at
strengthening our core business of power generation. Assured a#ailability of coal and gas
is the ,ey to the Company5s success and long?term sustainability as well as
competiti#eness. Fur shareholders ha#e mandated the re'uisite amendment in the
"
8emorandum of Association to enable the Company to ta,e up the fuel related
di#ersification in its totality.
". G our Company is imparting special thrust on hydropower in order to achie#e
operational and commercial synergy. =ubstantial hydro capacity will help us register
en#ironmental and economic gains in the long run. Fur plan is to substantially increase
the ration of hydro pro0ects in NTPC.
".1 In addition to the implementation of %(( 8- 2oldam Hydroelectric Pro0ect, we ha#e
ta,en up the Loharing Pala 93(( 8-:, Tapo#an #ishnugad 9"6( 8-: and Lata Tapo#an
91!1 8-: hydro pro0ects in 1ttaranchal with aggregate capacity of 161 8-.
5
3. Fur capacity addition program is on course. The good progress in the 1(
th
5 Plan so far
is due to our strategy of de#eloping a bas,et of new pro0ects, this has helped us in re?
wor,ing of the pro0ects and maintain the target in spite of the fact that some of the
pro0ects originally proposed for completion in the 1(th Plan within the bas,et hit
roadbloc,s due to e@ternal factors.
!. Bncouraged by the success of our capacity addition program during the 1(
th
Plan and
the impro#ement in the cash flow of the Company, we ha#e decided to increase our 11
th
Plan target from 11,""% 8- to 1!,("6 8-. -e plan to become a +,-... MW Pls
Company by the year 6(1!. Identification of pro0ects of 6(,((( 8- total capacities for
implementation in JII Plan has commenced.
%. -ithin the strategic framewor, of achie#ing planned capacity addition, we ha#e ta,en
continuous impro#ement measures to reduce the cost and time of pro0ect construction. -e
plan to commission "(( and 3(( 8- units within .% months only.
3
SOME SPECIFIC STRATEGIES IN IDENTIFIED AREAS:
1. In addition to the growth and di#ersification initiati#es, the Company has de#eloped
specific strategies in different areas with a #iew to ma@imi4ing its efficiency and returns.
-e will impart sharper focus on customer interaction and relationship management and
will e@plore new a#enues and methods of selling power. The tripartite agreement and
impro#ement in cash flow of our customers ha#e helped to ,ept our collections at 1((&
le#el. -e hope that this le#el will sustain in the long run. At least "& sale of energy to
bul, customers shall be targeted by 6(11. -e are loo,ing at possibilities to identify and
initiate wor, on substantial amount of merchant power capacity.
6. -e will continue our focus on impro#ement in our operation efficiency and we intend
to ta,e up >eno#ation K 8oderni4ation 9>K8: in the pro0ect mode. Fur stations are
continuously benchmar,ing their performance to adopt global best practices. 8ega >K8
schemes are to be ta,en up at Auraiya, 2awas, $andhar, *adri 9$as:, =ingrauli, 2orba
and, >amagundam.
.. -e ha#e launched a comprehensi#e total 'uality initiati#e called C;ourney of
B@cellence5. Bfficiency and 'uality impro#ement in all areas will be promoted and
monitored in a structured manner under the initiati#e. -e will be adopting a
comprehensi#e +usiness B@cellence 8odel in our 1nits.
7. Bmphasi4ing technology and engineering as ,ey dri#ers of enterprise success, we are
going to adopt state?of?the?art technologies with focus on efficiency and en#ironmental
priorities. -e plant to induct large si4ed units of %((I1((( 8- during the 16
th
Plan under
acti#e guidance and support from CBA and 8inistry of Power. Acti#ities, going on for
de#eloping I$CC technology appropriate to high ash Indian coal will be ta,en forward
and road map for in?house de#elopment of I$CC technology will be finali4ed. The state?
of?the?art Bnergy Technology Centre shall commence research in rele#ant areas and
ac'uire new and futuristic technologies.
!
". -e will continue with progressi#e human resources strategies to ma@imi4e employee
satisfaction and producti#ity. -e aim to continuously impro#e our manpower
producti#ity. -e are ta,ing initiati#es to infuse new learning, s,ills and attitudes among
our human resources at all the le#els. -e will be gi#ing thrust to leadership de#elopment
at the middle and higher le#els and comprehensi#e s,ills de#elopment at all le#els. Fur
thrust on #alues actuali4ation will be further intensified. The emphasis on competence
building, commitment enhancement, system building and culture building will be gi#en
still greater thrust with a number of specific initiati#es. -e will gi#e special focus on
employee in#ol#ement mechanisms and learning initiati#es. -e will continue to ,eep a
close watch on our performance management system so as to ensure that our performance
orientation ,eeps pace with our upgraded benchmar,s and new areas.
3. The Company will continue to play an important role under the Accelerated Power
*e#elopment K >eform Program 9AP*>P: and >a0i# $andhi $rameena <idyut,iran
Go0na. -e belie#e that the success of these programmes will strengthen the performance
and image of the power sector.
5
!. The Company has been identified as e@pert partner under the CPartnership in
B@cellence5 program ta,en up by 8inistry of Power in con0unction with CBA. This
program aims to help in impro#ing the performance of power stations with lower PL).
NTPC shall partner in fourteen power stations out of 63 power stations co#ered in the
program.
%. The company also endea#ors to gi#e bac, gratefully to the society from which we
deri#e a lot of inputs. -e ha#e adopted a comprehensi#e C=> Policy. -e ha#e set up
CNTPC Fon/a#$on' to address niche domains of socio?economic initiati#es li,e
facilitating economic self?reliance of physically challenged persons, promoting distributed
generation schemes through co#ering initial ris,s etc. These initiati#es are in addition to
our community de#elopment acti#ities being carried out at all the 6( operating stations.
%
. -e will continue our thrust on empowerment, transparency and go#ernance. Fur
performance on go#ernance parameters has been ac,nowledged and awarded. The world
Council for Corporate $o#ernance at London ga#e $olden Peacoc, Award for Corporate
$o#ernance to NTPC.
1(. -e are concluding the implementation phase of the organi4ational transformation
pro0ect named *I=HA carried out with the help of 8Is. A.T.2earney. 8ost of the
initiati#es under the pro0ect ha#e been rolled out. -hile ensuring that remaining initiati#es
are effecti#ely rolled out, we ha#e de#eloped our strategies to sustain *I=HA initiati#es so
that the transformation results get embedded in all facets of our wor,ing.
11. -e will intensify IT usage. In order to gi#e a 'uantum thrust to IT enablers, we ha#e
decided to implement B>P. -e will use B>P as a tool for effecti#e business process re?
engineering and for ensuring uniformity, transparency, 'uality and speed of decision?
ma,ing and functioning in the organi4ation.
Fur confidence that our strategies will be effecti#ely implemented is based upon the
pro#en success of our Company, year after year. Let us loo, at highlights of the
Company5s performance during the year 6((3?(! and the first 'uarter of 6((!?(%.
HIGHLIGHTS OF PERFORMANCE DURING 0..+1.2:
E >ecord generation of 1%%.3! billion units. Thus the Company generated 6%."(& of the
country5s total generation with 6(.1%& of capacity.
E Addition of .,1"" 8- capacity/ Pro0ects of 11,.3( 8- were under construction at the
end of 8arch, 6((%.
E Now, NTPC is the fourth largest Company in terms of mar,et capitali4ation with
>s.1.6! billions.
ENet sales of >s..(3.%.!( crore, as against >s.63176.( crore during 6((3?(!/ Net profit
9un?audited: after ta@ of >s.3!63.7( crore as compared to >s."%6(.6( crore during 6((!?
(%.
E1((& reali4ation of the billing for the fourth year in succession.

E>ecei#ed 8o1 award for e@cellence in performance consecuti#ely for two years
i.e.6(("?(3 and 6((!?(%.
E >an,ed 77
th
in the )orbes $lobal list of 6((( leading companies in the world based
on the composite ran,ing for sales, profit, assets and mar,et #alue/ fifth among the
Indian companies.
E >an,ed Third in the AThe best employers in Idia?6((7A sur#ey by Hewitt Associates
and CN+C T< 1% for second consecuti#e year/ ran,ed Third in C$reat Place to -or,
for in India5 =ur#ey by 8Is. grow Talent K +usiness world/ ran,ed =i@th in, +est
companies to -or, for in India5 =ur#ey by 8Is. 8ercer Human >esources consulting
and +usiness Today.
E $i#en =hell Helen 2eller Award in the organi4ation category for the year 6((7 for
underta,ing massi#e efforts for employment of disabled people.
E All NTPC stations ha#e been certified with I=F 17((1 by International and national
certifying agency.
E PL) of %.7.& as compared to %!."7& during the same period pre#ious year/
1(.71& increase in total 'uarterly generation.
THE SOCIAL COMMITMENT:
NTPC belie#es in growth with a human face and pursuing people?centered de#elopment .
NTPC is a socially committed organi4ation and a socially responsible corporate citi4en. It
attaches great importance to discharging its o#erall social responsible to the community
and the society at large where its pro0ects and stations are located. In this regard
>esettlement and >ehabilitation 9>K>: program becomes an area of sharp focus, a
program that addresses people affected directly or indirectly in the wa,e of the pro0ects
underta,en by NTPC.
1(
THE PIONEER:
=ensiti#e to the social issues since its inception, the organi4ation framed guidelines for the
facilities to be gi#en to the land ousters in 1%( +uilding on the earlier guidelines, a
comprehensi#e >K> policy was formulated and appro#ed for implementation in 8ay
1.. +ased on its e@periences and good practices adopted at #arious pro0ects since the
implementation of the 1. policy, as also ta,ing into consideration the $FI5s recently
notified NP>?6((., NTPC >K> policy has been re#ised in ;une, 6((". The policy has
been arri#ed at after intense consultation with the sta,eholders. Frgani4ation was the first
Public =ector 1nderta,ing 9P=1:,and in that way the pioneer, in ha#ing such a policy in
1.. International funding agencies, as also the $o#ernment of India, recogni4e and
ac,nowledge the e@periences gained by NTPC in this significant tas,.
THE COMPREHENSI3E POLICY FRAMEWOR4:
The >K> policy aims at impro#ing the o#erall economic status of Pro0ect Affected
Persons. This is achie#ed by pro#iding opportunities in the fields of sustainable income,
health, education, sanitation, communication and other such areas. Community
de#elopment acti#ities are carried out in a transparent and participati#e manner. Bach
program is based on the specific local re'uirement and guided by the e@tensi#e =ocio
economic =ur#eys 9=B=:. This helps meet the ob0ecti#e of ensuring that the Pro0ect
Affected Persons 9PAPs: impro#e or at least regain their pre#ious standard of li#ing.
Bfforts are made to adopt a holistic approach to community de#elopment.
Thrust is also gi#en on participation and consultation of sta,eholders and setting up of
institutional mechanisms li,e Public Information Centre 9PIC:, <illage *e#elopment
Ad#isory Committee 9<*AC: etc.
11
The PAPs are systematically categori4ed on an indi#idual basis, thereby bringing into its
fold homestead ousted, agricultural land owners, agricultural and non agricultural
laborers, tribal, occupiers culti#ating forest land etc. The >esettlement and >ehabilitation
program is meticulously wor,ed out for each PAP. The >K> policy options and
entitlements include D
>esettlement D
E *e#eloped alternate free house plot in resettlement colony with necessary
infrastructure facilities or pro#isions for self resettlement.
E )ree transport arrangement for belongings and reusable material or suitably
transport grant.
E Infrastructure to be pro#ided includes primary school, dispensary, panchayat ghar,
drin,ing water wellIhand pumps, -+8 roads drainage, =ulabh =auchalaya etc.
E =uitable >esettlement $rant etc.
R('a%$l$#a#$on :
E ALand for landA on a Cwilling buyer willing seller5 basis.
E Fther rehabilitation options based on need and re'uirement.
E Capacity Addition Programs.
E =uitable >ehabilitation $rants, subsistence Allowance etc.
E Fther inno#ating measures li,e incenti#ising purchase of land by the landless etc.
E Additional economic Fpportunities as per need and re'uirement.
16
E5TENSI3E SUR3EYS AND FORMULATION OF REHA6ILITATION ACTION
PLAN (RAP):
The rehabilitation plans rest on the sound foundation of =ocio economic sur#eys 9=B=:.
Independent and repute7d professional institutes conduct these sur#eys. =ur#eys help
assess the information on each PAP and chal, out the >ehabilitation Action Plan 9>AP:.
>APs.are prepared for new e@pansion and green field pro0ects and the plans are finali4ed
in a consultati#e manner with the PAPs and the =tate administration and soon they
translate into #iable pro0ects. The plans primarily aim at resulting PAPs in resettlement
colonies, pro#iding them infrastructure facilities and also ways and means of
rehabilitation.
The rehabilitation process is attuned to the local conditions and the needs of the people.
)acilitation for Land for Land on a Cwilling buyer willing seller basis5 is the main focus
for rehabilitation. The PAPs, are encouraged to be partners in the implementation of the
pro0ect. -ith an eye on long?term de#elopment, #ocational training has been built into the
rehabilitation process. The plans are implemented within a definite time frame and a
specified budget.
There is sharp focus on all round socio economic de#elopment of the community, which is
why the efforts do not stop at the indi#idual or family le#el redress but ta,e holistic
approach.. Apart from that #arious welfare and cultural acti#ities are also ta,en up.
>APs. under implementation D >APs. ha#e been finali4ed for the following pro0ects and
are in #arious stages of implementation #i4.,
1. Narth 2aranpura
6. Talcher Thermal
.. Par,ri barwadih
7. =ipat
". Anta?II
3. 2ol *am
!. +arh
1.
R(!(/$al Ac#$on Plan:
=ome Pro0ectsI=tations of NTPC were already fully or substantially de#eloped by the time
the 1. >K> Policy was adoptedIimplemented in 1.. In those pro0ectsIstations also,
the PAPs5 >esettlement K >ehabilitation was ta,en care of and the inputsIfacilities etc.
were pro#ided for. Howe#er, to cope with its total commitment to the well being of PAPs,
the Company did a re?assessment of the acti#ities in the older pro0ectsIstations and carried
out a Cretrofit5 >K> operation to bridge the gaps where#er they had occurred.
IMPLEMENTATION- MONITORING AND E3ALUATION:
Ins#$##$onal F*a!()o*7:
R&R G*o":
>ecogni4ing the importance of sound institutional framewor, to achie#e the desired
results NTPC has set up dedicated >K> groups. The >K > groups /operate at pro0ects,
>egional, Head 'uarters and the Corporate Centre. At the pro0ect le#el the group is
responsible for coordinating and implementing the >K> plans and acti#ities. The regional
>K> groups are responsible for monitoring the progress of implementation of >K> plans
and follow up of the respecti#e >K> acti#ities. At Corporate le#el, it o#ersees consistent
application of policies, its re#ision from time tot time and facilitates the pro0ects and the
regions in planning, scheduling, budgeting and appro#al of >APs etc.
The right s,ill mi@ has also been pro#ided by associating people with social e@pertise and
philanthropic thoughts, consultants, facilitators, social scientists where#er and whene#er
such help was felt necessary. Professional N$Fs.IC+Fs capable of assisting self
employment ha#e been engaged at times to achie#e the desired results depending upon the
need and re'uirement. Bncouragement has been gi#en for the formation of informal
groups at pro0ect le#el in#ol#ing employees, their families, ser#ice groups etc to augment
organi4ational efforts for the socio economic de#elopment of the areas.
)or effecti#e participation, consultation and transparency with the sta,eholders in its
acti#ities, Public Information Centers 9PICs: and <illage *e#elopment Ad#isory
17
Committees 9<*ACs: ha#e been set up by the organi4ation. In addition to this, depending
upon the need, the programmes are carried out closely with the N$FsIC+Fs. The
$rie#ance >edress 8echanism for each pro0ect encourages PAPs to approach them if
dissatisfied with the arrangements.
In an Bndea#our to not 0ust meet its promise but transcend, inno#ati#e practiced are used
from time to time depending on the pro0ect. Fur personnel in?charge of >K> acti#ities in
the organi4ation endea#our to not 0ust meet the formal organi4ational commitments made
to the PAPs but go beyond them through the application of inno#ati#e practices from time
to time.
P%l$c In8o*!a#$on C(n#*( (PIC):
To disseminate information one the pro0ect, PICs at Corporate Centre and the pro0ects
house an array of documents ? sur#ey reports, action plans, land records, policy etc. The
PAPs are able to glean information on #arious facets of the pro0ect and also submit any
'uery or grie#ance.
3$lla9( D(:(lo"!(n# A/:$so*& Co!!$##(( (3DAC):
<*AC facilitates finali4ation and implementation of >APs in a participati#e manner.
The representati#es of PAPs. $ram Pradhan, Panchayat representati#e, +loc,
*e#elopment Ffficer, other representati#es of =tate $o#ernment NTPC and
NF$Fs.IC+Fs. Constitute it and meet regularly since the formulation of >AP till
completion and closure of >APs at respecti#e pro0ects.
1"
Ins#all(/ ca"ac$#& :
Pro0ects No. of pro0ects
Commissioned
Capacity
98-:
NTPC F-NB*
CFAL 17 66,."
$A=ILIL.)1BL (! .,"
TFTAL 61 63,."(
I F-NB* +G ;<Cs
Coal 7 1,("7 M
$>AN* TFTAL 6" 6!,7(7
MCapti#e power Plant under ;< with =AIL
;o$n# 3(n#*(s :
NTPC, with a rich e@perience of engineering, constructing and operating nearly, 6(((
8- of thermal generating capacity, is the largest and one of the most efficient power
companies in India, ha#ing operations that match the global standards.
NTPC has identified ;oint <entures, strategic alliances as well as ac'uisitions and
di#ersifications as #iable and desired options for its business de#elopment. NTPC loo,s
for opportunity to create such 0oint #entures and strategic alliances, in the entire #alue
chain of the power business. NTPC as a partner endows the ;oint <enture Alliances with a
winning edge. Ac'uisitions and *i#ersifications in the areas related to the core business
not only ensure growth but also add to the robustness of the company. *i#ersification is
carried out either directly or through subsidiariesI;<s.
13
;OINT 3ENTURE PARTNERS:
The following 0oint #enture companies ha#e been formed so farD
NTPC1ALSTOM POWER SER3ICES P3GT< LT*. (NASL)
(Inco*"o*a#(/ $n =>>> an/ 8o*!(*l& 7no)n as NTPC1A66 ALSTOM POWER
SER3ICES P3T< LT*:
O6;ECTI3E : 1nderta,e >eno#ation K 8oderni4ation of power stations in India and
other =AA>C countries.
PROMOTERS' E?UITY @
NTPC D ,.A ALSTOM Po)(* G(n(*a#$on AG : ,.A
UTILITY POWER TECH LTD<
9Incorporated in 13:
This ;< has been promoted with +=B= Limited, a pri#ate sector Indian power company.
F+;1BCTI<BD To underta,e pro0ect construction K management acti#ities
PROMOTERS' E?UITY :
NTPCD ,.A 6SES : "(&
POWER TRADING CORPORTION (Inco*"o*a#(/ $n =>>2)
This ;< has been promoted with Power $rid Corporation of India Ltd. 9P$CIL:, a
$o#ernment owned transmission ma0or in India. Power )inance Corporation 9PC):, a
power sector finance company owned by the $o#ernment of India and National Hydro
Blectric Power Corporation Ltd. 9NHPC:, a $o#ernment owned hydro power utility.
1!
O6;ECTI3E : To trade power generated by mega power pro0ects in India.
PROMOTERS' E?UITY :
NTPC D %& Tata PowerD 1(&
P$CIL D %& *<D 1(&
P)C D %& )IID 1%."&
NHPC D%&
M+alance 6."& unallocated.
NTPC1SAIL POWER COMPANY (P3T) L#/ (NSPCL)
This ;< has been formed on 6.
rd
8arch, 6((1 with =teel Authority of India Ltd. 9=AIL:,
a $o#ernment of India underta,ing engaged in the steel manufacturing business and owns
four large integrated steel plants in the country.
O6;ECTI3E :To supply power to the *urgapur =teel Plant and >our,ela =teel Plant of
=teel Authority of India Limited 9=AIL: from its coal based power stations at *urgapur
9-est +engal: 6@3( 8- and >our,ela 9Frissa: 6@ 3( 8-.
PROMOTERS' E?UITY: NTPC D "(& =AILD "(&
6HILAI ELECTRIC SUPPLY COMPANY LTD (6ESCL)
This ;< has been formed on 66
nd
8arch, 6((6 with =teel Authority of India Limited
9=AIL:, a $o#ernment of India underta,ing engaged in the steel manufacturing business.
F+;BCTI<B D To supply power to the +hilai =teel Plant 9+=P: of =teel Authority of India
Limited 9=AIL: from its Coal based power station at +hilai 9Chattisgarh: 6(( 8- N
1J17 8-.
PROMOTERS' E?UITY: NTPCD "(& =AILD ,.A
1%
AC?UISITION:
+usiness de#elopment through Ac'uisition ser#es both NTPC5s own commercial interest
as well as the interest of the Indian economy.
Ta,ing o#er being a part of the ac'uisition process, is also an opportunity for NTPC to
add to its power generation capacity through minimal in#estment and #ery low gestation
period. NTPC has, o#er the years, ac'uired the following three power stations belonging
to other utilitiesI=B+s and has turned around each of them using its corporate abilities.
PF-B> =TATIFN= TA2BN F<B> GBA> F>I$INAL F-NB>
6J61( 8-
)B>FOB $AN*HI 1NCHAIIA> 1P >a0ya <idyut 1tpadan
THB>8AL PF-B> =TATIFN 11 Nigam of 1ttar Pradesh
7J3( 8- N 6J11( 8- TALCHB> Frissa =tate Blectricity
1"
THB>8AL PF-B> =TATIFN +oard
7J11(8- TAN*A Thermal Power
=tation 6((( 1P state Blectricity +oard
DI3ERSIFICATION:
To broad?base the business and also to ensure growth, di#ersification in the areas
related to NTPC5s core business of power generation such as Hydro power,
*istribution, Trading, Coal mining, LN$ etc. ha#e been identified as priority areas.
A< HORIBONTAL DI3ERSIFICATION 1 HYDRO POWER:
The urgent need for adding pea, load stations coupled with shortage of domestic fuels
and concern for en#ironmental pollution prompted the $o#ernment to lay thrust on
adding hydro stations. This has pro#ided NTPC with an opportunity to hori4ontally
di#ersify and set up hydro electric power stations towards the due need of operating
pea, load demands and thermal for base load.
In 1! NTPC started the preliminary acti#ities to tap a part of the abundant hydro
electric potential of the country by identifying suitable pro0ects for de#elopment.
1
Northern >egion and more specifically Himachal Pradesh and 1ttar Pradesh were
targeted for initial entry in hydro sector. NTPC5s #enture in hydro sector became a
reality when 2oldam Pro0ect, a green field Hydro Blectric pro0ect of %(( 8- capacity
in the =tate of Himachal Pradesh, was formally assigned to N I5PC on 63
th
)eb. 6(((.
An 8o1 has been signed with $o#t. of 1ttaranchal on .1.16.6((6 for implementation of
Lohari?Nagpala 97@1.( 8-: and Tapo#an <isnuugad 9.3(8-: Hydro Blectric Power
Pro0ect in the state of 1ttaranchal on +FF8 basis, sub0ect to techno?commercial #iability
of the pro0ect, and clearance of 8FB).
In order to de#elop small and medium Hydro Blectric Power Pro0ect upto 6"( 8-
capacities a wholly owned subsidiary company named NTPC Hydro Ltd. has been
incorporated on 16A5 *ecember, 6((6.
8ore hydro pro0ects are being e@plored to find out the te)no?economic #iability for
de#elopment by NTPC. The company intends to add at least .((( 8- capacity through
hydro pro0ects by the end of J Plan.
5
6< 3ERTICAL (FOREWARD) INTEGRATION 1 DISTRI6UTION AND POWER
TRADING:
In order to di#ersify along the power #alue chain, NTC has gone in for distribution and
power trading to ensure forward lin,ages and also enhance re#enue channels.
To ac'uire, establish and operate electrical systems etc. for distribution and supply of
electrical energy to consumers, a subsidiary company named as NTC Blectricity =upply
Company Ltd. 9NB=CL: has been incorporated.
In order to underta,e business of sale and purchase of electric power, a subsidiary
company ,nown as NTPC. <idyut <yapar Nigam Ltd. 9N<<NL: has also been
incorporated.
6(
C<3ERTICAL (6AC4WARD) INTEGRATION 1 COAL MINING AND LNG
6USINESS :
COAL MINING:
The policy changes in coal sector pro#ide /an opportunity to NTPC to enter capti#e coal
mining business. NTPC is contemplating capti#e mines in North 2aranpura area of
Central Coal?fields Ltd. 9CCL : AN* Talcher area of 8ahandi Coal?fields Ltd. 98CL:.
Central 8ine Planning K *esign Institute Ltd. 9C8P*IL: 9a subsidiary of Coal India
Ltd.:, >anchi is being appointed as a consultant for assisting and guiding NTPC in #arious
acti#ities of capti#e mining.
COAL WASHERIES:
NTPC is intending to set up coal washeries in the following three coal mine areas D
Amlori ara under Northern Coal?fields Ltd. 9NCL:
Talcher area under 8ahandi Coal?fields Ltd. 98CL:
North 2aranpura under Central Coal?fields Ltd. 9CCL:
)easibility studies for Amlori area is already completed in *ecember 6((6. NTPC has
appointed Central 8ine Planning K *esign Institute Ltd. 9C8P*IL: 9a subsidiary of Coal
India Ltd.:, >anchi, and India as the consultant for the feasibility studies.
LNG:
NTPC is contemplating procurement of LN$ fuelINatural $as for e@panding its gas based
power pro0ects at Anta, Auraiya, 2awas and ;hanor ? $andhar in North India with
cumulati#e capacity addition of 63(( 8- and at 2ayam,ulam in =outh India by 1"(
8-. )uel re'uirement for North India is appro@imately ..( 88TPA and for =outh India
is 6.( 88TPA. Accordingly LN$ fuelINatural $as terminals ha#e been planned. Fne
each in North India and in =outh India, to be commissioned by prospecti#e suppliers.
NTPC intends to ,eep options for 63& e'uity sta,e in regasification terminal and may
see, 1(& e'uity in li'uefaction terminal.
61
D<STEP TOWARDS GLO6ALISATION:
NTPC is e@ploring the possibility of setting up a $as +ased Combined Cycle Power Plant
in +angladesh through ;oint <enture with +angladesh power *e#elopment +oard 9+P*+:
and Petro +angla.
NTPC has signed an 8F1 with +lac, and <eatch 91=A: for rendering ser#ices in the
areas of Bngineering, Pro0ect 8anagement, Fperation and 8aintenance, Luality
Assurance etc.
NTPC and +HBL ha#e 0oined hands to wor, as consortium partners to set up a "(( 8-
integrated water and power pro0ect with .(8$* of desalination plant in Fman on +FF
basis.
Po)(*$n9 In/$a's G*o)#': T'*o9' "(o"l(
NTPC strongly belie#es in achie#ing organi4ational e@cellence through Human >esources
and follows APeople )irstA approach to le#erage the potential of its 6.,"(( employees to
fulfill its business plans. Human >esources )unction has formulated an integrated H>
strategy which is rests on four building bloc,s of H> #i4., Competence building,
Commitment building, Culture building and =ystems building. All H> initiati#es are
underta,en within this broad framewor, to actuali4e the H> <ision of Aenabling the
employees to be a family of committed world class professionals ma,ing NTPC a learning
organi4ationA.
To induct talent and groom them into a dedicated cadre of power professionals AB@ecuti#e
TraineeA =cheme was introduced in the year 1!! for recruitment in5the disciplines of
8echanical, Blectrical, Ci#il, Control K Instrumentation and now encompasses Computer
=cience, Chemistry, H> and )inance disciplines also. +esides a comprehensi#e one year
training comprising theoretical inputs as well as on?the?0ob training, the new recruits are
attached with senior e@ecuti#es under a systematic and formal C8entoring =ystem5 of the
company to integrate them into the Culture of the company.
66
As part of post employment training and de#elopment opportunities, a systematic Training
plan has been formulated for ensuring minimum se#en man days training per employee
per year and includes le#el?wise planned inter#ention designed to groom people for
assuming positions of higher responsibility, as well as specific need?based inter#entions
based on scientific Training Needs Analysis. NTPC has created 1" pro0ect training
centers, 6 simulator training centers and an ape@ institute namely CPower 8anagement
Institute5 9P8I:. -hile the pro0ect training centers 9Bmployee *e#elopment Centers: ha#e
speciali4ed in imparting technical s,ills and ,nowledge, P8I places emphasis on
management de#elopment. +esides opportunities for long term education are also
pro#ided through tie ups with reputed Institutes li,e IIT, *elhi, 98.Tech. in Power
$eneration Technology:, 8*I, $urgaon 9B@ecuti#e 8+A program:, +IT=, Pilani
9+.Tech.: etc.
In order to reali4e the H> <ision of ma,ing NTPC a learning Frgani4ation by pro#iding
opportunities to continually learn new capabilities a number of initiati#es ha#e been ta,en.
NTPC Fpen Competition for B@ecuti#e Talent 9NFCBT: is organi4ed e#ery year in which
teams of e@ecuti#es compete annually through oral and written presentation on a topical
theme. =imilarly CP*o8(ss$onal CirclesA ha#e been formed department?wise where
B@ecuti#es of the department meet e#ery fortnight to share their ,nowledge and
e@periences and discuss topical issues. In order to tap the latent talent among non
e@ecuti#es and ma,e use of their potential for creati#ity and inno#ation, Luality Circles
ha#e been set up in #arious unitsIoffices in NTPC.
+esides a management 0ournal called AHori4onA is published 'uarterly to enable the
employees to share their ideas and e@periences across the organi4ation.
*emonstrating its high concern for people, NTPC has de#eloped strong employee
welfare, health K well?being and social security systems leading to high le#el of
commitment. NTPC officers best 'uality of life through beautiful townships with all
amenities such as educational, medical and recreational opportunities for employees and
6.
their family members. The moti#ation to perform and e@cel is further enhanced through a
comprehensi#e NTPC >ewards and >ecognition system.
In order to institutionali4e a strong Culture based on <alues a number of initiati#es are
ta,en to actuali4e the <ision and Core <alues 9CF8IT: across the company. A culture of
celebrating achie#ements and a strong focus on performance are a way of life in NTPC.
NTPC has institutionali4ed A*e#elopment CentersA in the company to systematically
diagnose the current and potential competency re'uirements of the employees with the
ob0ecti#e of enhancing their de#elopment in a planned manner. These Centers gi#e a good
insight to the employees about their strengths and wea,nesses, the gaps in their
competencies which they can bridge through suitable support from company.
*ue to inno#ati#e people management practices there is a high le#el of pridel and
commitment amongst employees as reflected in the A+est Bmployers in India?6((.A
sur#ey by Hewitt Associates in which NTPC bagged co#eted third ran,. )urther
continuous efforts are being made by H> function to le#erage the potential of its
employees and become a strategic business plan.
3ISION:
A A world class integrated power ma0or, powering India5s growth, with increasing
global presence,A
MISSION:
A*e#elop and pro#ide reliable power, related products and ser#ices at competiti#e prices,
integrated multiple energy sources with inno#ati#e and eco?friendly technologies and
contribute to safety.A
67
CORE 3ALUES:
E +usiness ethics.
E Customer focus
E Frgani4ational K professional pride
E 8utual respect K trust
E Inno#ation K speed
E Total 'uality for e@cellence
CORPORATE O6;ECTI3ES:
The main ob0ecti#es of the company are as followsD
1.To add generating capacity with in prescribed time and cost.
6.To operate and maintain power stations at high a#ailability ensuring minimum cost of
generation.
.. To de#elop appropriate commercial policy heading to remunerati#e tariffs tend
minimum recei#ables.
7.To introduce assimilate and attain self?sufficiency in technology, ac'uire e@pertise in
utility management practices and to disseminate ,nowledge essentially as a contribution
to constituents of the power sector in the country.
". To de#elop >K* for achie#ing impro#ed plant reliability and to e@pand the consultancy
operations and to participate in #entures abroad.
6"
CHAPTER1 II
RESEARCH DESIGN
In#*o/c#$on #o #'( S#/&
+udgeting is a #ery important tool of control for management in almost e#ery type of
organi4ation. The present study deals with the types of budget, the process of budgeting,
and the control o#er the budgets i.e., how control is e@ercised through budgeting to attain
the goals of the organi4ation in an effecti#e and efficient manner.
A A+udgetA is a pre?determined detailed plan of action de#eloped and distributed as a
guide to current operation. This may be considered as a basis for e#aluation5 of
performance of the organi4ation. It is the end product of budgeting process.
A+udgetingA is process of preparing the budget for gi#en period of time. A systematic
approach to facilitate effecti#e management performance is ,nown as budgeting. It is also
,nown as profit planning and control. This is the process of planning all flows of financial
resources into, within, and from an entity during some specified future period.
A+udgetary controlA is a system of management and accounting in which all operations
are forecasted and planned ahead and the actual results are compared with the forecasted
and planned #alues.
+udgeting is the starting point of budgetary control. A +udget I prepared. The actual
performance is tabulated. The actual and budgeted #alues are continuously compared. If
there is any #ariances in these #alues correcti#e actions are ta,en to ensure that there is a
match between actual and budgeted performance. The main ob0ecti#e of budgetary control
is to help the management in planning and controlling the enterprise.
63
O%D(c#$:(s o8 #'( S#/&
1.To analy4e the con#entional budgetary system in practice in NTPC.
6. To e#aluate and modify to the current budgetary system with reference to the #arious
types of budgets.
..To e#aluate the efficiency and the budgetary control system in NTPC.
7. To offer appropriate suggestions and recommendations for impro#ing the system.
". To prepare pro0ected financial statements for NTPC from the data ta,en from #arious
budgets.
Sco"( o8 #'( S#/&
The budgetary control systems in >=TP= considers generation and transmission line
pro0ects as independent cost centers. This system prepares the Fperations K 8anagement
budget for each of the cost centers as per the re'uirements of the costing system. The
budget for the in#estment center is the sum totals of the budgets of the cost centers.
=eparate budgets are prepared for re#enue acti#ities other than operations and research
and de#elopment, consultancy contracts. To facilitate management, budgets are phased
into monthly or 'uarterly targets. The actual performance is analy4ed against this
budgeted performance in order to ta,e correcti#e remedial actions if #ariances any e@ist.
The pro0ection of internal resources o#er a period of " to 1" years and updating " years
plans of the Company is also done.
R(s(a*c' M(#'o/olo9&
The >esearch methodology deals with how the study was carried out. This consists of
se#eral stages wherein the process proceeds through #arious stages to finally attain the
ob0ecti#e of the study. Hence, for any pro0ect the ob0ecti#e or aim of the pro0ect is to be
,nown. The ob0ecti#e of the pro0ect is set. The organi4ation in which the pro0ect is to be
carried out is to be selected. The profile or the organi4ation is collected from #arious
0ournals, monthly maga4ines, from the employees etc., The introduction to the topic under
study has to be gi#en. This can be obtained from #arious related boo,s, Company library.
As the topic under study is on budgets, budgeting and budgetary control, theoretical
6!
information is gathered from the abo#e mentioned sources. The budgets i.e., types of
budgets and budgetary system that is carried out in NTPC >amagundam is carefully
studied and analy4ed with the suggestions and information gi#en by the internal guide
allotted by the company. <arious budgets from past 6 to . years are ta,en from the
concerned official of the )inance *epartment. The information related to the study was
obtained from concerned Ffficers of >=TP=, NTPC ;ournals, accounting boo,s, records,
>=TP= Library. Fnce the re'uired information is gathered , the analysis of those budgets
is made. This is a comparati#e study between #arious budgets of consecuti#e years. This
comparati#e study leads to draw #arious conclusions.
A/:an#a9(s o8 6/9(#a*& con#*ol
1. It is an essential tool of management in controlling cost and ma@imi4ing profit.
6. It helps in estimating the final need of the concern and thereby reduces the possibility
of o#er and under capitali4ation.
.. It secures planned allocation of producti#e facilities and resources for their best
utili4ation.
7.It helps in measuring the efficiency of department and indi#iduals.
".It helps in promoting a feeling of cost consciousness.
3.It ser#es as a basis for future policy and also for re#iewing current policies in the light
of e@perience.
!.+udgeting assists in the stabili4ation of industry.
Limitations of +udgetary control
1.+udgets are essential based on forecast and estimates whose accuracy depends upon the
correctness of facts and 0udgments.
6.*anger of o#er budgeting spelling out ma0or e@penses in detail.
..+udgeting becomes #ery difficult tas, under fast changing business conditions and
go#ernment policies.
7.Preparation and operations of budgetary program is e@pensi#e.
".+udgeting tends to bring about rigidity in control.
6%
CHAPTER 1 III
THEORETICAL FRAMEWOR4
INTRODUCTION TO 6UDGET- 6UDGETING AND 6UDGETARY CONTROL
The 8anagement is efficient if it is able to accomplish the ob0ecti#e of the Bnterprise with
minimum efforts and cost. In order to attain long?range efficiency and effecti#eness,
8anagement must chart out its course in ad#ance. A systematic approach to facilitate
effecti#e management performance is profit planning and control or budgeting. +udgeting
is therefore an integral part of management. In a way, a +udgetary control system has
been described as a historical combination of a Agoal setting machine for increasing an
enterprise5s profit, and a goal achie#ing machine5for facilitating organi4ational
coordination and planning while achie#ing the budgeted targets.A
MEANING OF 6UDGET:
It is a financial and 'uantitati#e statement, prepared and appro#ed prior to a defined
period of time, of policy to be pursued during that period for purpose of attaining a gi#en
ob0ecti#e. It may include Income, B@penditure and Bmployment capital. In other words, it
is a pre?determined detailed plan of action de#eloped and distributed as a guide to current
operations and as a partial basis for the subse'uent e#aluation of performance.
MEANING OF 6UDGETING:
The process of planning all flows of financial resources into, within and from an entity
during some specified future period. It includes pro#iding for the detailed allocation of
e@pected a#ailable future resources to pro0ects, functions, responsibilities, and time
periods. )rom abo#e definition, it is clear that budgeting is the actual act of preparing the
budget. It is the process of e#ol#ing the final statement. +udget is the end product of
budgeting.
6
ESSENTIALS OF A GOOD 6UDGET:
1. It is prepared prior to a defmed period of time.
6. It is prepared for the definite future period.
.. The policy to be followed to attain the gi#en ob0ecti#es must be laid before the budget
is prepared.
7. It is monetary and 'uantitati#e statements of the policy.
MEANING OF 6UDGETARY CONTROL:
.
It is the process of establishing of departmental budgets relating to the responsibilities of
B@ecuti#es to the re'uirements of a policy, and the continuous comparison of actual with
budgeted results, either to secure by indi#idual action, the ob0ecti#es of that policy, or to
pro#ide a firm basis for its re#ision. )irst of all, budgets are prepared and then actual
results are compared with the budgeted figures, which will enable the management to find
out discrepancies if any and ta,e remedial measures at a proper time. A+udgetary control
is the system of management control and accounting in which all operations are forecasted
and so as possible planned a head and actual results compared with the forecast and
planned ones.A
ESSENTIALS OF 6UDGETARY CONTROL:
1. +udgeting or the process of preparing the budget, is the starting point for budgetary
control.
6.*istribution of budgets pertaining to each function to all the rele#ant sections within the
organi4ation.
..Collection of actual data pertaining to all budgeted acti#ities.
7.Continuous comparison of actual performance with budgeted performance.
".Analysis of #ariances in actual performance and budgeted performance.
3. Initiation of correcti#e action to ensure that actual performance is in line with budgeted
performance.
!. >e#ision of budget if it is felt that the budgets prepared are no longer rele#ant on
account of unforeseen de#elopments.
.(
O6;ECTI3ES OF 6UDGETARY CONTROL:
The primary ob0ecti#e of budgetary control is to help the management in systematic
planning and in controlling the operations of the enterprise. The primary ob0ecti#e can be
met only if there is proper communication and co?ordination amongst different
departments within the organi4ation. Thus, the ob0ecti#es can be stated asD
l. PLANNING:
+usinesses re'uire planning to ensure efficient and ma@imum use of their resources. The
first step in planning is to define the broad aims and ob0ecti#es of the businesses. Then,
strategies to achie#e the desired goals are formulated and tentati#e schedule of the
proposed combinations of the #arious factors of production, which is the most profitable
for the defined period. +udget influences strategies that needed to be followed by the
organi4ations. It culti#ates forced planning aiming 8anagers.
6. CO1ORDINATION:
Co?ordination is a managerial function under which all factors of production and all
departmental acti#ities are balanced and integrated to achie#e the ob0ecti#es of the
organi4ation. +udgeting pro#ides the basis for indi#iduals in all departments to e@change
ideas on how best the organi4ations ob0ecti#es can be reali4ed. B@ecuti#es are forced to
thin, of the relationship between their departments and the company as a whole. This
remo#es unconscious biases against other department. It also helps to identify the
wea,nesses in the organi4ation structure.
E< COMMUNICATIONS:
The people in the organi4ation must ,now the ob0ecti#es, policies and performances of the
organi4ation. They must ha#e a clear understanding of their part in the organi4ation5s
goals. This is made possible by ensuring their participation in the budgeting process.
.1
F< CONTROLS AND PERFORMANCE E3ALUATION:
Control ensures control by continuous comparison of actual performance with the
budgeted performance. <ariances are highlighted and correcti#e action can be initiated.
+udgets are also prepared on the basis of performance e#aluation in
,
an organi4ation as
they reflect realistic estimates of acceptable and e@pected performance.
6UDGET- 6UDGETING- AND 6UDGETARY CONTROL:
A +udget is a blue print of a plan e@pressed in a 'uantitati#e terms. +udgeting is a
techni'ue for formulating budgets. +udgetary control refers to the principles, procedures,
and practices of achie#ing gi#en ob0ecti#es through +udgets.
)rom the abo#e definitions, we can differentiate the three terms, as A+udgets are the
indi#idual ob0ecti#es of a *epartment etc., whereas budgeting may be said to be the act of
budgeting budgets +udgetary control embraces all and in addition includes the science of
planning the budgets to effect on o#erall management tool for the business planning and
control.A
ESSENTIALS OF 6UDGETARY CONTROL:
=< ORGANISATION FOR 6UDGETARY CONTROL:
The proper organi4ation is essential for the successful preparation, maintenance and
administration of budgets. A budgetary committee is formed comprising the departmental
heads of #arious departments. All the )unctional heads are entrusted with the
responsibility of ensuring proper implementation of their respecti#e departmental budgets.
The Chief B@ecuti#e is the o#erall in charge of the budgetary system, constitutes a budget
committee for preparing a realistic budgets. A budget officer is the con#ener of the budget
committee who co?ordinates the budgets of different departments. The managers of
different departments are made responsible for their departmental budgets.
.6
0< 6UDGET OFFICER:
The Chief B@ecuti#e appoints +udget Ffficer. =uch +udget Ffficer also called as A+udget
Controller or +udget *irector.A His ran, should be e'ual to other )unctional 8anagers.
The +udget Ffficer does not ha#e the direct responsibility of preparing the budgets. The
#arious )unctional 8anagers prepare the budgets. His role is that of a =uper#isor. The
+udget Ffficer has the specific duty of administering the +udget. He is responsible for
timely completion of budgeting acti#ity by #arious departments and for co?ordination
between them so that there is a proper lin, between them. He is empowered to scrutini4e
the budgets prepared by different )unctional heads and to ma,e changes in them, if the
situation so demands.
The +udget Ffficer wor,s as a Coordinator among different departments, continuously
monitors the actual performance of different departments and determines the de#iations in
the budgets and ta,es necessary steps to rectify the deficiencies if any and informs the top
management about the performance of different departments.
C
The +udget Ffficer will be able to carry out his wor, only if he is con#ersant with the
wor,ing of all the departments. He must ha#e technical ,nowledge of the business and
should also possess accounting ,nowledge.
E< 6UDGET COMMITTEE:
A +udget committee is formed to assist the +udget Ffficer. The heads of all the important
departments are made members of this committee. The committee is responsible for
preparation and e@ecution of budgets. The members of this committee put up the case of
their respecti#e departments and help the committee to ta,e collecti#e decisions, if
necessary. The budget committee is responsible for re#iewing the budgets prepared by
#arious functional heads. Co?ordinate all the budgets and appro#e the final budget. The
budget officer acts as Coordinator of this committee. All the functional hBads are
entrusted with the responsibility of ensuring proper implementation of their respecti#e
final departmental budgets.
..
F< 6UDGET CENTERS:
A +udget center is a part of the organi4ation for which the budget is prepared. A budget
center may be a department, section of a department or any other part of the department.
Ideally, the head of e#ery center should be a member of the budget committee. Howe#er,
it must be ensured that each budget center at least has any indirect representation in the
budget committee.
The Bstablishment of budget center is essential for co#ering all parts of the orgnisation,
which becomes easy when different centers are established. The budget centers are also
necessary for cost control purpose.
,< 6UDGET MANUAL:
A budget manual is a document that spells out the duties and responsibilities of #arious
e@ecuti#es concerned with. It specifies the relations among #arious functional areas. A
budget manual co#ers the following mattersD
a: A budget manual clearly defines the ob0ecti#es of budgetary control system and also
gi#es the benefits and principles of the system.
b: The duties and responsibilities of #arious persons dealing with preparation and
e@ecution of budgets are also gi#en in a budget manual. It enables the management to
,now the persons dealing with #arious aspects of budgets and pro#ides clarity on the
duties and responsibilities.
c: It gi#es information about the sanctioning authorities of #arious budgets. The financial
powers of different managers are gi#en in the manual for enabling the spending
amount on #arious e@penses.
d: A proper table for budgets including the sending of performance reports is drawn so
that e#ery wor, starts in time and a systematic control is e@ercised.
e: The specimen forms and number of copies to be used for preparing budget reports is
also stated. +udget centers in#ol#ed should be clearly stated.
f: The length of #arious budget periods and control points is clearly gi#en.
g: The procedure to be followed in the entire system is clearly stated.
h: A method of accounting to be used for #arious e@penditures is also stated in the manual.
.7
A budget manual helps in documentation, the role of e#ery employee, his duties,
responsibilities, the ways of underta,ing #arious tas,s etc., Thus, it also helps in reducing
ambiguity at any point of time.
G< 6UDGET PERIOD:
A budget period is the length of time for which the budget is prepared. It depends upon a
number of factors. The choice of budget period depends upon the following
considerationsD
E The type of budget 9 long or short :
E The nature of demand for the products.
E The timings for the a#ailability of finance.
E The economic situations of the cycles.
All the abo#e mentioned factors are ta,en into account while fi@ing the period of budgets.
In this budgeting process the )inance 8anager has to ta,e the financial decision on the
budgets.
The )inance 8anager is usually responsible for organi4ing the budget, he has to perform
the following functions.
E To decide the general policies and guidelines.
E To offer technical ad#ice, To suggest changes.
E To recei#e and re#iew indi#idual budget estimates.
E To reconcile di#ergent #iews.
E To co?ordinate budgeting acti#ities.
E To appro#e budgets with or without re#isions.
E To scrutini4e control reports later on.
E To scrutini4e budget reports later on.
After finali4ing the budget proposals, the budget committee submits the final budget to
the +oard of *irectors or +udget *irector for appro#al.
+<CONTINUOUS 6UDGETING SYSTEM:
."
A continuous budgeting system is a method of ha#ing two different budget periods
within the same budget. The purpose of ha#ing the system is to ha#e greater control in
terms of operational acti#ities without losing sight is to ha#e greater control in terms of
its results in incorporating the effect of changes in the short term and long term targets of
the organi4ation.
2<DETERMINATION OF 4EY FACTOR:
The budgets are prepared for all functional areas. These budgets are inter?dependant and
inter?related. A proper co?ordination among different budgets is necessary for budgetary
control to be successful. The constraints on some budgets may ha#e an effect on other
budgets too. A factor, which influences all other budgets, is ,nown as A2ey factor or
Principle factor.A The ,ey factor may not necessarily remain the same. The raw materials
supply may be limited at one time but it may be easily a#ailable at another time. =imilarly,
other factors may also impro#e at different times. The ,ey factor highlights the limitations
of the enterprise. This will enable the anagement to impro#e the wor,ing of those
departments where scope for impro#ement e@ists.
RE?UISITES FOR A SUCCESSFUL 6UDGETARY CONTROL SYSTEM:
)or ma,ing a budgetary control system, successful re'uisites are re'uired.
=< CLARIFYING O6;ECTI3ES:
The +udgets are used to reali4e ob0ecti#es of the business. The ob0ecti#e must be clearly
spelt out so that budgets are properly prepared. In the absence of clear goals, the budgets
will also be unrealistic.
0< PROPER DELEGATION OF AUTHORITY AND RESPONSI6ILITY:
+udget preparation and control is done at e#ery le#el of management. B#en though,
budgets are finali4ed at top le#el but in#ol#ement of persons from lower le#els of
management is essential for their success. This necessitates proper delegation of authority
and responsibility.
E< PROPER COMMUNICATION SYSTEM:
.3
An effecti#e system of communication is re'uired for a successful budgetary control. The
flow of information regarding budgets should be 'uic, so that these are implemented. The
upward communication will help in ,nowing the difficulties in implementation of
budgets. The performance report of #arious le#els will help top management in budgetary
control.
F< 6UDGET EDUCATION:
The employees should be educated about the benefits of budgeting system. They should
be educated about their roles in the success of the system. The employees should not ta,e
budgetary control only as a control de#ice but it should be used as a tool to impro#e their
efficiency.
,< FLE5I6ILITY:
)le@ibility in budgets is re'uired to ma,e them suitable under changed circumstances.
+udgets are prepared for the future, which is always uncertain. B#en though budgets are
prepared by considering the future possibilities but still some ad0ustments. )le@ibility
ma,es the budgets more appropriate and realistic.
G< MOTI3ATION:
+udgets are to be implemented by human beings. Their successful implementation will
depend upon the interest shown by the employees. All persons should be moti#ated to
impro#e their wor,ing so that budgeting is successful. A proper system of moti#ation
should be introduced for ma,ing a system success.
.!
TYPES OF 6UDGETS:
LONG TERM 6UDGETS:
The long term budgets are the budgets prepared for long period of fi#e to ten years. There
is concern with planning the operations of a firm o#er a considerably long period of time.
The financial AControllerA e@clusi#ely for the top management usually prepares long term
budgets. These budgets are #ery useful in terms of physical units 9 i.e., 'uantities : or
percentages, since accurate #alues may be difficult to forecast o#er such long period.
Capital e@penditure, research and de#elopments etc., are e@amples of long term budgets.
SHORT TERM 6UDGETS:
=hort term budgets are budgets prepared for a short period of one to two years. They are
prepared for those acti#ities for which the trend can not be foreseen easily o#er long
periods. These budgets are #ery useful in case of consumer goods industry such as =ugar,
Cotton. Te@tiles etc., They are generally prepared in terms of physical units 9 i.e,
'uantities : as well as monetary units 9i.e., #alues:. 8aterials budget, cash budget, etc., are
e@amples of short term budgets. They are useful to lower le#el of management for control
purpose.
CURRENT 6UDGETS:
Current budget is a budget, which is established for use o#er a short period of time and is
related to current conditions. Thus, current budgets are essentially short term budgets
ad0usted to current 9i.e., present or pre#ailing: conditions or circumstances. They are
prepared for a #ery short period, say, a 'uarter or a month. They relate to current acti#ities
of the budgets.
INTERIM 6UDGETS:
Interim budgets are budgets, which are prepared in between two budget periods. These
budgets may get integrated with the budget of the following period.
.%
CLASSIFICATION OF 6UDGETS ACCORDING TO CONTENT:
+udgets may be classified into budgets in physical terms and budgets in monetary terms.
a) 6UDGETS IN PHYSICAL TERMS:
+udgets in physical terms are budgeted in terms of 'uantities only. They do not include
corresponding rupee #alue. Long term budgets are usually prepared in physical terms.
B@amples of such budgets are production budget, materials budget etc.,
%) 6UDGETS IN MONETARY TERMS:
+udgets in monetary terms are budgets are budgets in terms of 'uantities as well as their
corresponding rupee #alue. =ales budget, purchase budget etc., are e@amples of such
budgets. +udgets such as cash budget, capital e@penditure budget etc., which may not
ha#e physical 'uantities also from part of budgets in monetary terms.
CLASSIFICATION OF 6UDGETS ACCORDING TO FUNCTIONS:
6/9(#s can %( class$8$(/ $n#o:
1. Fperating budgets
6. )inancial budgets
.. 8aster budgets
.
=< OPERATING 6UDGET:
These budgets relate to different acti#ities or operations of a firm. The number of such
budgets depends upon the si4e and nature of the business. The commonly used operating
budgets areD
a: =ales budget.
b: Purchase budget.
c: >aw materials budget.
d: Labour budget.
e: Plant utili4ation budget.
f: 8anufacturing e@penses or wor, o#erhead budget.
g: Administrati#e and selling e@penses budget etc.,
The operating budget for a firm may be constructed in terms of programmes and
responsibility areas, and hence may consist of D
a: Program budget
b: >esponsibility budget
PROGRAM 6UDGET:
Program +udget consists of e@pected re#enues and costs of #arious products or pro0ects
that are termed as ma0or programmes of the firm. =uch a budget can be prepared for each
product line or pro0ect showing re#enues, cost and the relati#e profitability of the #arious
in locating areas where efforts may be re'uired to reduce costs and increase re#enues.
They are also useful in determining imbalances and inade'uacies in programmes so that
correcti#e action may be ta,en in future.
7(
RESPONSI6ILITY 6UDGET:
-here the operating budget of a firm is constructed in terms of responsibility areas, such
a budget shows the plan in terms of persons responsible for achie#ing them. It is used by
the management as a control de#ice to e#aluate the performance of e@ecuti#es who are in
charge of #arious cost centers. Their performance is compared to targets9budgets: set for
them and proper action is ta,en for ad#erse results.
>esponsibility areas may be classified under three broad categoriesD
1. Cost or B@pense center.
6. Profit Center.
.. In#estment Center.
0< FINANCIAL 6UDGETS:
)inancial budgets are concerned with cash receipts and disbursements, wor,ing capital,
financial position and results of business operations. The commonly used financial
budgets include cash budget, wor,ing capital budget, income statement budget, and
statement of retained earnings budget, budgeted balance sheet or position statement
budget.
E<MASTER 6UDGET:
The master budget is the summary budget incorporating its functional budgets. All the
operational and financial budgets are integrated into the 8aster +udget. The +udget
Ffficer
for the benefit of the top le#el management prepares this budget. This budget is used to
coordinate the acti#ities of #arious functional departments. It is also used as an effecti#e
control de#ice.
71
CLASSIFICATION OF THE 6ASIS OF FLE5I6ILITY:
a) FI5ED 6UDGET:
According to IC8A, London A A )i@ed budget is a budget which is designed to remain
unchanged irrespecti#e of the le#el of acti#ity actually attained.A It is based on a fi@ed
#olume of acti#ity and shows one #olume of output and related cost. It is not ad0usted .
according to actual le#el of acti#ity attained.
A fi@ed budget is useful only when the actual le#el of acti#ity corresponds with the
budgeted le#el acti#ity. +ut this, generally, does not happenD as such a fi@ed budget is not
useful for managerial purposes.
%) FLE5I6LE- 3ARIA6LE- SLIDING SCALE OR CONTROL TYPE 6UDGETS:
According to IC8A, London A A fle@ible budget is a budget which is designed to change
in accordance with the le#el of acti#ity actually attained. Thus a fle@ible budget changes
according to the change in the le#el of acti#ity. In other words, it pro#ides the budgeted
costs at any le#el of acti#ity.
+usiness acti#ity can not be accurately predicted on account of uncertainties of business
en#ironment. A fle@ible budget contains se#eral estimates for different assumed
circumstances instead of 0ust one estimate. It pro#ides for automatic ad0ustment with
changes in the #olume of acti#ity. Hence, the situations are operating in an unpredictable
en#ironment.
BERO 6ASED 6UDGETING:
Oero based techni'ue is the latest techni'ue of budgeting and it has increased use as a
managerial tool. This techni'ue was first used in America in 136, by the former
president, ;immy Carter.
76
As the name suggests, it is starting from a A=cratchA. The normal techni'ue of budgeting
is to use pre#ious years costs le#els as a base for preparing this year5s budget. This method
carries pre#ious years inefficiencies to the present year because we ta,e last year as a
guide, and decide A what is to be done this year when this much was the perforn4ance for
the last year.A
In 4ero based budgeting e#ery year is ta,en as a new year and pre#ious year is not
,
ta,en as
a base. The budget for this year will ha#e to be 0ustified according to present situation.
Oero is ta,en as a base and li,ely future acti#ities are decided according to present
situations. In 4ero based budgeting a 8anager is to 0ustify why he wants to spend. The
performance of spending on #arious acti#ities will depend upon their 0ustification and
priority for spending will ha#e to be pro#ed that an acti#ity is essential and the amounts
as,ed for are really reasonable ta,ing in to account the #olume of acti#ity.
7.
CHAPTER 1 I3
ANALYTICAL FRAMEWOR4
6UDGET AND 6UDGETARY SYSTEM IN NTPC1RSTPS
The budgeting process is used in the performance budgeting for the construction of phase,
which includes pre?commissioning acti#ities. +esides meeting the essential re'uirements
of managerial control, the budget pro#ides the basis of procurement of funds from $o#t.
in the form of e'uity and loan. The budgeting e@ercise also co#ers the long term capital
budgeting, which is presented in the form of annual plan.
O6;ECTI3ES OF THE 6UDGETARY SYSTEM:
E To prepare annual budgets in such a manner those managers at #arious le#els in the
organi4ation carry out periodical e@ercise in respect of each contract or responsibility
center for physical planning and matching resources bro,e up in to monthly targets or
cash flows.
E To introduce and operate responsible for achie#ement of specified targets with the
resources allocated for the purpose.
E To bring about effecti#e coordination of all acti#ities of the organi4ation and to gear
up ser#ice di#isions to meet effecti#ely the re'uirements of pro0ect.
E To identify and account for cost o#er runs and to analy4e contributory factors into
de#iations and cost escalations.
E To control budgets with reference to standards or norms of performance ascertain
se#eral of actual e@penditure o#er budget pro#ision and analyses the reasons.
77
6UDGET PERIOD AND PHASING:
The budget period or annual budgets should correspond with the financial year. In
Fctober e#ery year, the, budgets should be drawn up for the ensuring financial year in the
form of budget estimates financial year in the form of re#ised estimates 9>.B:. In addition,
the budgets are to be re#iewed on monthly basis by pro0ect re#iew teams, in the light of
actual e@penditure and pro0ections in the budget period. +udgets should indicate monthly
phasing of e@penditure and targets for the first and 'uarterly phasing for the second half of
the year. At the time of re#iew of the budget estimates to frame re#ised estimates the
'uarterly phasing should be bro,en up into a monthly phasing.
-hile drawing up the annual budget in Fctober in e#ery year, the long term capital budget
for ongoing and new schemes should be formulated as a part of the e@ercise for
preparation of Annual Plan. The long term capital budget should indicate for a period of
si@ years following the budget period pro0ect?wise annual phasing of the capital
e@penditure and physical schedules resource based net wor,, internal generation of
sources and net budgetary support from $o#t.
6UDGET HEADS
)or uniform accounting, it is essential that costs be collected for each system of the station
though this may in#ol#e splitting up of payments against contracts, which embrace more
than one system. Allocation of the cost as system?wise affords a sound basis for cost
accounting, inter?firm comparisons and pro#ides #aluable inputs to data ban,. +udget
pro#isions are related to pro0ect estimates and monitoring of actual e@penditure. Power
and control cables belong to electrical system where as control cables form part of control
and instrumentation system =tation piping, which include pipelines, for ash water mains,
compressed air system and ci#il wor,s piping.
Au@iliary pumps for water treatment plant and ci#il wor,s system. If there are any
contracts not co#ered in the budget heads pro#ision for such contracts should be shown
against the appropriate system head by adding code number.
7"
, TYPES OF 6UDGETS IN NTPC1RSTPS:
According to the nature of e@penditure, +udgets are classified asD
E *irect capital outlay on wor,s
E Technical consultancy
E Incidental e@penditure during construction E
Bmployee cost
Fther Bstablishment B@pensesD
E Training and >ecruitment
E Preliminary e@penses
E 8isc. brought out assets
E Cash budget
E Township budget
E )oreign B@change budget.
6RIEF E5PLANATION TO THE NATURE OF E5PENDITURE INCLUDED IN
EACH 6UDGET IS INDICATED 6ELOW:
INCIDENTAL E5PENDITURE DURING CONSTRUCTION PERSONNEL
PAYMENT:
These comprises of salaries, wages, allowances, contribution to P) and other funds and
welfare e@penses such as LIC, 8edical reimbursement, Canteen subsidy etc., any
pro#ision for areas of salaryI*A.
OFFICE AND OTHER E5PENSES:
B@penses incidental to construction and capital wor,s not traceable directly to incidental
e@penditure, during contribution e'uipment, #ehicle running e@penses, office rents, LC
and cost of drawings, tra#eling e@penses, printing and stationery, communication
e@penses, ad#ertisement for tenders etc., are ma0or items in this category.
73
TRAINING- RECRUITMENT AND OTHER DEFERRED RE3ENUE
E5PENDITURE:
The first part of the budget consists of e@penses for training e@ecuti#es and none@ecuti#e
trainees, including stipends, faculty fees, course material, TA for trainees, rent for training
halls and e@penses for management de#elopment courses. The second part consists of
e@penses for recruitment such as ad#ertisement for recruitment, inter#iew e@penses, TA to
candidates etc., The third part combines preliminary . e@penses including share
registration fees and research and de#elopmental e@penses.
MISCELLANEOUS 6OUGHT OUT ASSETS:
<ehicles, )urniture and fi@tures e'uipments, hospital and medical e'uipments.
8iscellaneous assets of township figure in this budget.
RE3IEW OF PRO;ECT 6UDGDET:
MONTHLY RE3IEW:
At monthly inter#als, the budgets should be re#iewed by pro0ect re#iew committee 9P>C:.
Pro0ect budget should report actual e@penditure against budget heads. -or, heads and
corporate budget by the !
th
of the month following the reporting month. The monthly
re#iew should be e@amined by pro0ect re#iew team 9P>T:. -ho should record reasons for
ma0or #ariations and action proposed for e@pending wor,s in the minutes of the meeting.
>easons for any #ariations in the case of budget heads e@ceeding 1(& of the budget
estimatesIre#ised estimates or whiche#er is lower >s." la,hs should be analy4ed and
reported upon.
7!
?UARTERLY RE3IEW:
P>T should conduct a 'uarterly budget re#iew with a #iew to pro0ect?anticipated
e@penditure during the year against appro#ed budget estimatesIre#ised estimates. As time
is essence of such a re#iew, only a 'uic, estimate of anticipated e@penditure for indi#idual
budget heads in#ol#ing pro#isions e@ceeding >s."( la,hs in each case should be made
and reported upon in 8inutes of P>T. )or this. purpose, pro0ect budget should furnish all
the rele#ant data to $eneral 8anager 9Pro0ect: and planning and systems by 1(
th
of the
month following the 'uarter pro0ect budget. Committee should re#iew the actual
e@penditure and assess anticipated e@penditure contract co
ordinationIBngineer in charge.
The pro0ect budget committee should furnish the assessment of anticipated e@penditure to
$eneral 8anager 9Pro0ect: by .(
th
of the month following the 'uarter under re#iew.
6UDGET OF SER3ICE DI3ISIONHCORPORATE 6UDGETS:
Corporate +udget Committee should conduct a re#iew of budgets of ser#ice and corporate
di#isions at 'uarterly inter#als. )or this purpose, corporate accounts should report actual
e@penditure up to the end of the 'uarter by 1(C
h
of the month following 'uarter to
corporate budget and budget co?ordination of the remaining period of the year should be
sent to corporate budget should put up a consolidate report di#ision wise and pro0ect wise
to corporate budget committee by the 1"C
h
of 8ay, August, No#ember and )ebruary e#ery
year.
7%
O6;ECTI3ES OF THE CURRENT 6UGETARY CONTROL SYSTEM IN NTPC1
RSTPS:
The current budgetary control system ? operating phase has been compelled to achie#e the
following ob0ecti#es.
E To control actual performance with reference to standards or norms adopted in the
budget, ascertain the de#iation analy4e and establish the reasons.
E To identify constraints in generation and timely action for estimation of constraints.
E To monitor the generation of internal resources so as to ensure a#ailability of
ade'uate funds.
E To prepare re#enue budget so as to forecast the periodical profitability of the
organi4ation.
E To de#elop standards or norms of performance in #arious areas of FK8 based on
e@perience.
E To in#ol#e managers at #arious departments in the process of de#eloping
performance budget so as to introduce the concept of responsibility, accounting and
participate management.
E To ensure effecti#e co?ordination in planning of all acti#ities so that all the inputs and
ser#ices necessary for achie#ing the physical targets are a#ailable at appropriate time.
E To create cost consciousness among the managers responsible for decision?ma,ing.
E To pro#ide data regarding operational norms and costs for the purpose of formulating
tariff.
E To pro#ide data as a basis for assessment of wor,ing capital re'uirements.
E To control the wor,ing capital particularly boo, debts, spares and other items of
in#entory.
E To impro#e profitability and internal resources generation.
7
SCOPE OF THE PERFORMANCE 6UDGET:
The +udget for operation and maintenance acti#ities will be called ? APerformance +udget
FperationA. This, in effect, means that all financial targets in the budget will be based on
performance targets in physical terms.
The current budgetary control system operation phase en#isages generation and
transmission line pro0ects as independent in#estment centers. It becomes applicable to a
pro0ect in the year in which it plans to commerciali4e its first generation unit. Howe#er,.
The budgeting for e@penses ,9 net of re#enue : from the date of synchroni4ation to the
date of commercial generation 9 i.e., during trial run : is to be ta,en in the capital budget
of the respecti#e pro0ect. =imilarly, in the case of transmission line pro0ect the system
becomes applicable from the year in which it plans to commission its first line along with
the substation or the date of commercial generation of the first unit of the generating
pro0ect, with which this line is associated, whiche#er is later. )or subse'uent lines, the
FK8 wil be prepared from the date of energi4ation.
The system en#isages the preparation of operation and maintenance budget for each of the
cost centers as per the re'uirements of the costing systems 9 i.e., operation, maintenance
and ser#ices cost center:.
The sum totals of budgets of the cost centLMrs will be the budget for the in#estment
center. Howe#er, the budget for the profit center will be wor,ed out by apportioning the
re#enue and cost of #arious cost centers to indi#idual5s profit centers based on specified
norms.
The performance budget operation will consists of the following budgets along with the
supporting schedulesD
l. +udgeted +alance sheet.
6. +udgeted Profit K Loss account.
.. Cash +udget.
"(
In addition, separate budgets for re#enue acti#ities other than operation for research and
de#elopment, consultancy contracts etc., The e@penses in respect of de#elopmental
e@penditure for impro#ements, additions, replacements, renewals, balancing facilities etc,
are of capital nature and will be budgeted for in the construction budget for budgetary
control system ? construction phase.
To facilitate management control, the system also en#isages, phasing of these budgets into
monthlyI'uarterly targets. The actual performance then will be reasons for #ariations will
be analy4ed and established for ta,ing correcti#e remedial actions The scope also includes
pro0ection of internal resources for a period ranging from " to 1" years and updating of "
years plan as well as perspecti#e plan of the Company.
STAGES IN THE FORMULATION OF PERFORMANCE 6UDGET:
The system pro#ides for a two stages formulation for APerformance budget operationA the
stages are gi#en belowD
INITIAL PROPOSAL:
In the initial period, the pro0ect is re'uired to indicate yearly targets. In the addition, to
furnish basis information li,e synchroni4ation and commercial generation dates.
Constraints on coal operation at less than the designed specification, calorific #alue of
coal and oil, material consumption in physical terms for items whose consumption #alue
is >s." la,hs or more, planned shut down for a maintenance and o#erhauling and norms
for #arious operating parameters pro#ided for design specification and in the tariff
agreements to the corporate budget committee.
In the initial proposals is planned to submit after considering these factors and ,eeping in
#iew the perspecti#e plans of the organi4ation, fi@es as well as norms for #arious
operating parameters. These targets and norms are then communicated to all stations and
transmission line offices in the last wee, of ;uly to be used for formulating detailed
budget in the form of final proposal.
"1
FINAL PROPOSAL:
The final proposal will consist of detailed budgets in the form of budgeted balance sheet.
+udgeted Profit K Loss account and cash budget along with supporting schedules for each
of the in#estment center. This final proposal needs to be submitted to corporate center
within . wee,s of recei#ing appro#al for initial proposal.
The final proposal, after appro#al by the +oard, will become the basis of monitoring
performance for cost centers and in#estment centers.
The fre'uency and e@tent re#iew and monitoring will be done is underD
i: The monitoring and actual performance against budgeted targets for in#estment
centerIprofit center on monthly basis and for cost centers on 'uarterly for
remedialIcorrecti#e actions
ii: The re#iew of performance budget on 'uarterly basis to asspss the anticipated
profitability.
The first step in the preparation of performance budget, FK8 is formulation of
maintenance and o#erhauling schedules for +oiler and T$ which generation, then
considering the grid demand, the a#ailability of inputs and station problems, if any, the
utili4ation of capacity will be wor,ed out, on month ? month basis for the budget period.
The gross generation targets can be wor,ed out accordingly.
If the new units are to be included in the scope of budgeting, the dates for commercial
generation will also need to be indicated. Fperation should not be more than three months
for 6((8- unit and four months in case of "FF8- unit. If more time is pro#ided
between the date of commissioning and commercial generation, 0ustification will need to
be furnished.
"6
NET GENERATION:
The sales #alue will be determined from 'uantum of net generation 9 i.e., gross generation
? au@iliary generation:.
AU5ILARY CONSUMPTION H CONSUMPTION 6Y UTILITIES:
The power consumption by each of the cost centers for indi#idual unit au@iliaries, station
au@iliaries as well as transformer losses are to be estimated separately based on design
specifications and added in order to wor,out total au@iliary consumption rather than
fi@ing an o#erall percentage. =imilarly, consumption by utilities will also need to be
indicated by concerned cost centersIdepartments li,e township and construction
9Blectrical erection: department. This will be #alued at cost net generation to arri#e at the
sales #alues for own consumption.
The consumption of power by unit au@iliaries will be a#ailable unit?wise. The
consumption of power by station au@iliaries 9common: and by utilities will need to5be
wor,ed. Consumption by station au@iliaries and utilities are to be pro?rated to indi#idual
units in the ration of gross generation.
ENERGY SENT OUT AND SALES:
+y subtracting the consumption by utilities from net generation, energy sent out can be
wor,ed out which will determine the sales #alue based on the agreed tariff rates. If a new
station is entering FK8 phase during the budget period, corporate commercial di#ision
will pro#ide tariff rate.
=imilarly, sales re#enue for transmission charges will be wor,ed out on the basis of either
to be indicated along with a brief note on the nature of contract. Terms of payments, time
schedule and progress of wor, etc.,
".
HEAT RATE:
)i@ation of heat rate target, the budget period will be a #ery crucial decision as far as the
profitability of generating station is concerned. The definition of heat rate will be same a
gi#en in the operation performance monitoring systems 9FP8=: issued by corporate.
Heat rate is dependant on 8- load, 'uality of inputs, ma,es up water consumption,
combustion performance of condenser and mills and temperature and pressure at #arious
points in the system. Therefore, all these factors must be considered before fi@ing target
for heat rate. )or budgeting purpose Astation heat rateA will be as sum total of heat per unit
rate or fi@ed charge per month depending upon the terms of tariff agreement.
ELECTRICITY DUTY:
The payment of Blectricity duty is to be wor,ed out from gross generation I net generation
I energy sent out as applicable to indi#idual stations and states. The same amount should
be shown as reco#ery from Blectricity +oards on the re#enue side. 5
OTHER RE3ENUES:
Normally, in#estment centers will not ha#e any income from consultancy because re#enue
for all ma0or consultancy contracts etc., is to be rec,oned against Corporate center as per
separate profit and loss account based on instructions. Heat rate is the heat in 2cal
re'uired to generate one 2wh of electrical energy. Total heat minus heat contributed by oil
P heat contributed by coal. Heat contributed by coal di#ided by $C< of coal is specific
coal consumption. The heat rate of input of coal for this purpose should be calculated after
including handling loss in the coal consumption. The Aunit heat rateA calculation will not
include handling loss of coal.
"7
FUEL CONSUMPTION:
The sum total of coal and oil consumption is treated as fuel consumption for budgeting.
The specific oil consumption factor will be fi@ed based on past performance of each unit.
=ince heat rate is a deri#ati#e of specific coal and oil consumption and specific oil
consumption is already fi@ed.
The specific coal consumption factor can be wor,ed out as underD
=pecific fuel consumption P heat rate generation of fuel
9or:
P2gI2wh P 2calI2wh
Fnce the specific coal consumption 9 2gI2wh: is ,nown the 'uantity of coal consumption
can be obtained depending upon the gross generation le#el.
Coal consumption P specific coal consumption 92gI2wh: J $ross generation.
The handling loss for coal is to be restricted to (..& as per recommendation of the
committee for this purpose. This handling loss from the point of receipt in the trac,
hopper to gra#isImetric feeders will be added to coal consumption as indicated abo#e to
arri#e at gross coal consumption.
CHEMICAL CONSUMPTION:
The chemicals are used by many cost centers for treatment of water. The consumption of
chemicals will be correlated with #olume of water treated and certain norms will ha#e to
be de#eloped for different type of chemicals and different types of treatment.
+ased on these norms each of the cost centers will indicate consumption of chemicals in
'uantitati#e as well as financial terms. The cost center?wise re'uirement will be
consolidated to arri#e at total chemicals consumption to be charged to profit and loss
account. The #aluation of chemicals will be done at current prices only.
""
EMPLOYEE COST:
The basis of employee cost will be the appro#ed manpower budget effecti#e for respecti#e
years of budget period. The estimation of employee cost is to be done for each grade
considering mid point of the scale as basis pay and after adding #arious allowances li,e
*A, H>A, CCC, Pro0ect Allowance etc., as admissible in respecti#e gradesD This is to be
wor,ed out for each of the budget period based on e@isting strength 9 at the time of
estimation: in each grade and additions during each 'uarter 9ta,ing !(& satisfaction for
additions:.
The pro#isions for LTC, 8edical reimbursement, P) and other welfare e@penses are to be
made based on trend of e@penses in pre#ious years and ta,ing into account policies
changes, if any. The details of welfare e@penses li,e Li#eries and 1niforms, =afety
e@penses, Accident compensations, games and sports, canteen subsidy etc., are to list out
as per the chart of account. The pro#isions for incenti#es, bonus and payments of one time
nature are to be shown separately based on total employee cost for e@ecuti#es, super#isors
and non?super#isors and total manpower in this categories, separate rates of cost per
employee will be wor,ed out for each of this categories as underD
5
1. =alaries and allowances.
6. Contribution to P) and other )unds.
.. -elfare e@penses.
The cost center of employee cost will be wor,ed out based on these rates separately for
B@ecuti#es, =uper#isors and non?super#isors. This will be again be consolidated
separately for operations, maintenance and common function. The employee cost of
common functions will be appropriated between construction and FK8 budgets in the
ratio of capital e@penditure and sales during the respecti#e years.
"3
REPAIRS AND MAINTENANCE:
In line with costing system, following three acti#ities can represent ma0or classification of
repairs and maintenance.
l. 8a0or o#erhaul.
6. Pre#enti#e maintenance
.. +rea,down maintenance
Normally, budgeting will be done for the former two D under each acti#ity separate
estimates will be prepared for consumption of materials and maintenance 0obs. This
estimation will be done at each of the sub cost center wise details are re'uired to be
mentioned.
The consumption of material for repairs and maintenance will be classified into
spares, lubricants, loose tools and plants, consumables and others. The cost centerwise
totals separately for three acti#ities will be added to arri#e at summary of material
consumption and maintenance 0obs, which will be reflected in the profit and
loss account.
The material consumption, especially of spares, can be estimated based on the e@pected
life of #arious componentsIspares in the installed e'uipment the fre'uency of brea,downs
in the past and the re'uirement for pre#enti#e maintenance and ma0or o#erhauls. The
actual life of components may be different from that indicated in the manufacturers
specification. Therefore, it is #ery difficult to estimate re'uirements of spares. +ut this
estimation will become gradually accurate as more e@perience is gained. )or new stations,
it will be ad#isable to collect such information from old stations that ha#e gained
e@perience in this field.
Normally, maintenance of e'uipment through contractors should be a#oided. +ut in
certain cases, if the e@pertise and in?house capability or sufficient manpower is not
a#ailable, maintenance 0obs can be got done through contractors. =uch contracts will need
to be listed out separately. If any owner supply items are co#ered in such contracts the
cost of these items will be included in the material cost.
"!
STATION AND GENERAL O3ERHEADS:
All the items of e@penditure under this head will be estimated based on the past trend with
due ad0ustment for policy changes. The estimates will be gi#en by cist center needs for
items identified with respect to cost centers. The administrati#e cost of ser#ice cost
centers will be allocated between construction and FK8 in the ratio of capital
e@penditure and sales during the respecti#e years.
DEPRECIATION:
This is to be charged as per Companies Act,1"3 from the first year the asset is ready for
its intended use. This will be done separately by each of the cost centers on the basis of
capitali4ed #alue and rates of depreciation furnished by site finance and account for
different categories of assets. Cost center?wise depreciation will be added to arri#e at total
depreciation for the in#estment center.
INTEREST ON FI5ED CAPITAL:
As per e@isting accounting policy, the interest is to be charged to profit and lbss account
based on the loan content in the capitali4ed assets restricted to total accrued interest on the
actual loans. )or budgeting purposes, interest will be wor,ed on e'uated loan content or
e'uated loan which e#er is less.
E?UATED LOAN CONTENT:
B'uated loan content is ta,en as "(& of total capital cost and ad0usted for number of
operating months in respecti#e years. In case of both generating stations and transmission
lines with associated sub?station, the cost for each profit center will be ta,en as per actual
or anticipated capital cost.
"%
The e'uated loan content is to be apportioned to indi#idual units, transmission lines
separately for each of the phases or stages. The total capital cost will be ta,en as proposed
in the performance budget ? construction.
TA+LB?1
6(("?(3 6((3?(! 6((!?(%
+udgeted 13("( 1!("( 6(7%
generation981:
Actual power 13..1.!! 13!6".!%3 13(.%.!
generation981:
Plant load %%."7 (."1 %3.7"
)actor9&:
Au@iliary power 1(!.3((" 11(..717 16".6"
consumption981:
Au@iliary 3.31 3.3( 3.7(
Consumption9&:
Fwn consumption 6(.%61 61.%1(. 66.6.1%
981:
Fwn (.16! (.1.( (.11.
consumption9&:
Coal 1(1.67. 1((3%.( 11!!%3%%
consumption98T:
Fil .%6%.137 67%".16" 7!6".1!%
consumption92L:
"
OPERATIONAL E5PENDITURE 6UDGET
=1.No. Particulars
+udgeted estimates for
6((3?(!
Actual Amount for
6((!?(%
Amount Ps.I2-H Amount Ps.I2-H
1 <A>IA+LB CF=T
CFAL 167%!3 !..67 1676 !7..1
FIL
High )uel oil K high
=peed
1(37 (.36 "7 (..3
Total of 1 16"7( !..%3 167%. !7.3!
6
FPB>ATIFN= K
8AINTBNANCB CF=T
Chemicals K -ater 6!. (.13 6"( (.1"
>epairs K 8aintenance 36"6 ..3! ".( ..1!
Bmployee Cost 3.%. ..!7 3%67 7.(%
=tation K $eneral
B@penses
6%"6 1.3! .!1 6.66
>ebate .3!" 6.13 .71 6.(
=hare of c.c B@penses .(%3 1.%1 633! 1."
TFTAL F) 6 66"61 1..61 6663( 1...1
. )INANCB CHA>$B=
*epreciation 11!3 3.6 117.% 3.%7
Interest on fi@ed capital 67"" 1.77 1(3( (.3.
TFTAL F) . 176"1 %..3 167% !.7!
$>AN* TFTAL91N6N.: 136!16 ".7. 1"3"1 ".73
3(
RE3ENUE 6UDGET
=LNF. PA>TIC1LA>=
+udget Bstimated for
6((3?(!
Actual for 6((!?(%
Amount Ps.I2-H Amount Ps.I2-H
1 =ALB=
)i@ed cost reco#ery 7%%!".(( 6%.3! 7"16..(( 63.%
<ariable cost reco#ery
16"%3.(
(
!..% 1637"!.(( !".31
)uel price ad0ustment
reco#ery
%.%( 7.1 "77 ..6%
TFTAL
1%.671.(
(
1(!.7! 1!!(!7.(( 1(".%!
31
OPERATIONAL E5PENDITURE 6UDGET
=1.No. Pa*#$cla*s
6/9(#(/ (s#$!a#(s
8o*
0..,1.G
Ac#al A!on# 8o*
0..+1.2
A!on# Ps<H4WH A!on# Ps<H4WH
= 3ARIA6LE COST
COAL
=,GE..<.
.
+G<0, =,GEG.<.. +><F.
OIL
H$9' F(l o$l & '$9'
S"((/
2+,<.. .<FE =.>F<.G .<,G
To#al o8 =
=,+=+,<.
.
+G<G2 =,+F,F<.. +><>G
0
OPERATIONS &
MAINTENANCE COST
C'(!$cals & Wa#(* E0,<.. .<=G 0+G<.. .<=F
R("a$*s & Ma$n#(nanc( +...<.. E<F= +0,2<.. E<G>
E!"lo&(( Cos# G>,><.. E<E> +EGF<.. E<+F
S#a#$on & G(n(*al
EI"(ns(s
,=+,<.. 0<,0 E+2,<.. =<>0
R(%a#( FE0G<.. 0<== F,,.<0, 0<E=
S'a*( o8 c<c EI"(ns(s E,+.<.. =<+F EG,G<2, =<2,
TOTAL OF 0 0+E,,<.. =E<E, 0G2>.<=. =E<GG
E FINANCE CHARGES
D("*(c$a#$on =+>.,<.. 2<+E =2=2F<0+ ><0E
In#(*(s# on 8$I(/ ca"$#al 20+E<.. F<.2 +=GF<F+ E<GF I
TOTAL OF E 0G0+2<.. =0<20 0,EF2<+F =0<2+
GRAND TOTAL(=J0JE) 0=.2.2<.. =.0<2F 0.>G>0<2F =.G<F>
36
RE3ENUE 6UDGET
=LNF. PA>TIC1LA>=
+udget Bstimated for
6((3?(!
Actual for 6((!?(%
Amount Ps.I2-H Amount Ps.I2-H
1 =ALB=
)i@ed cost reco#ery 3163.(( ...!6 3163.(( .".11
<ariable cost reco#ery 13%!37.(( %6... 1336!".76 %7.77
)uel price ad0ustment
reco#ery
36.(( (..7 1(71.. "."3
Fwn consumption ??????????? ???????????? 1!.6% (.(
TFTAL 6.%"%6.(( Q 113.. 673"66.3. 16..6(
3.
PURCHASE 6UDGET 0..+1.2
=LNo
8aterial
*escription
1nit
Fpening
=toc,
9Pro#isional:
Purchases
*uring
the year
Consumption
*uring the
year
Closing
=toc,
1 Coal
(((52T
>sILa,hs
"(%
3"3%
1.(16
1!(%7
16!(
1!(7(6
""(
!1"(
6 Fil
2L
>sILa,hs
11(1
66(
36
1176
3!((
11%
!((
13"
TFTAL >sILa,hs 3!3% 1!6163 1!13(( !.1"
. Chemicals >sILa,hs 1% .66 .6" 1"
7 Consumables >sILa,hs 1%% 16 1%( 56((
" =pares >sILa,hs 116 3(3% 7(%( 111((
3 Lubricants >sILa,hs !" 61( 13( 16"
! Fthers >sILa,hs 1. 161 1" 67"
TFTAL >sILa,hs ".6 31. 7!3( 113%"
$>AN*
TFTAL
>sILalchs 13.6( 1!(. 1!3.3(

1(((
37
CHAPTER13
FINDINGS AND CONCLUSIONS:
The data pertaining to the generation and consumption of power at >=TP= ha#e been
obtained from the year 6(("?(3 to 6((!?(% and represented in Table ?6 which include
total generation of power in million units 981: and utili4ation for au@iliary consumption,
for own consumption and net e@port and also include cola and oil consumption in million
tones 98T: and 2ilo liters 92L: respecti#ely.
In the year 6(("?(3, 13..1.!! 81 of power has been generated with %%.!"& that is
e'ual to a decrease of (.%3& o#er the pre#ious year. Fut of the total generated power
1(!.3((" 81 of power has been utili4ed for au@iliary consumption 9 3.%1&: and 6(.%66
81 of power has been utili4ed for own consumption. )or total generation of power
1,(1,.,67. 8T of coal and .%6%.137 2L of oil ha#e been consumed.
In the year 6((3?(!. 13!6".!%3 81 of power has been generated with (.& that is e'ual
to 6.1"& increase o#er the pre#ious year. Fut of the total generated power 11(..7 81 of
power has been utili4ed for au@iliary consumption 93.3.&: and 61.%1 81 of power has
been utili4ed for own consumption. )or total generation of power 1,((,3,%.( 8T of coal
and 67%".16" 2L of oil ha#e been consumed.
In the year 6((!?(%, 13(.%.! 81 of power has been generated with 1(!.(1& that is
e'ual to 13.11& increase o#er the pre#ious year. Fut of the total generated power 16".63
81 of power has been utili4ed for au@iliary consumption 9 3..&:. )or the total
generation of power 1,1!,!%,3%% 8T of coal and 7!6".1!% 2L oil has been consumed.
The total cost of generation, total re#enue and profit position of >=TP= ha#e been
presented for the 6 years from 6(("?(3 to 6((!?(% in Table.l, Table 1.1, Table 6.1, Table
1.6 Table 6.6 respecti#ely. Cost of generation includes different components of costs li,e
#ariable cost on coal and oil, operations and maintenance cost on items li,e depreciation,
interest on fi@ed capital ha#e been included for the purpose of cost of net generation.
3"
Cost of net generation P Total #ariable cost N Total FK8 cost N Total finance charges
Fperating profit P Total sales ? cost of net sales
=imilarly a#erage incenti#es, other income has been shown under operating profit. The
sum total of operating and non?operating profit gi#es the total profit.
Total profit P Fperating profit N Non operating profit.
In the calculation of net operating profit,
Total sales P )i@ed cost reco#ery N <ariable cost reco#ery N A#erage incenti#es.
The company has spent more on employee cost and repairs and maintenance in the year
6(("?(3 as compared to the pre#ious year. Amount spent on station o#erheads was less in
the year 6(("?(3 as compared to pre#ious year. In total, there is an increase in amount
spent on operation and maintenance e@penses in the year 6(("?(3 as compared to the year
6((7?(".
The operating profit for the year 6(("?(3 are, budgeted #alue is >s.67"( crore and actual
#alue is >s.61!% crore. The difference in budgeted and actual #alue is >s..131 crore less.
The operating profit for the year 6((3?(! are, budgeted #alue is >s...73! crore and actual
#alue is >s.7(."6.77 crore. The difference in budgeted and actual #alue is >s.3%%".77
more.
33
CHAPTER 1 3I
CONCLUSIONS AND SUGGESTIONS:
B#ery organi4ation has pre?determined set of ob0ecti#es and goals, but reaching those
ob0ecti#es and goals only by proper planning and e@ecution of the plans economically.
The National Thermal Power Corporation was incorporated on !
th
No#ember 1!", in the
center sector as a thermal power generating company with the ob0ecti#es of planning,
promoting,and organi4ing an integrated de#elopment of thermal power in the country.
The corporation mission of NTPC is to ma,e a#ailable reliable and 'uality power in
increasingly large 'uantities. The company will spearhead the process of accelerated
de#elopment of the power sector by e@peditiously planning, implementing power pro0ect
and operating power stations economically and efficiently.
The >amagundam =uper Thermal Power =tation 9>=TP=: is the third in the series of
super thermal power stations set up by NTPC and the first in the southern region. The
>=TP= has installed 63(( 8-, comprising of se#en units ? three units 6(( 8- each and
three units "(( 8- and recent "(( 8- units. The power generated from >=TP= is
distributed to the southern states of Andhra Pradesh, 2arnata,a, Tamil Nadu, 2erla,
Pondicherry and $oa through southern power grid. >=TP= was constructed at a cost of
>s,1!(6.1% crores, the station has been one of the largest recipients of the -orld +an,
loan.
As in the pro0ect implementation, the station continued to e@cel in power generation with
the power station ha#ing reached the first goal of total capacity installation. >amagundam
is generating power in terms of budget and budgetary control.
The NTPC?>=TP= has budgeting process in two stages. Fne is the construction or capital
e@penditure budget and another is operating maintenance budget. The capital e@penditure
budget shows the list of capital pro0ects selected for in#estment along with their estimated
3!
costs. Fperating K 8aintenance budget refers to the repairs K maintenance budgets. The
special budgets are rarely used in the organi4ation li,e long terms budgets, >esearch K
*e#elopment budget and budget for consultancy which are prepared at the Corporate
le#el.
NTPC is a premier power generating corporation that caters to the needs of power all o#er
India. NTPC has been conferred the status of ANa#aratnaA company by the $o#t. ta,ing
into account its si4e, efficiency utili4ation of its resources and implementation of
sophisticated technology and power generation and also creating ambience of collecti#e
wor,ing of its employees.
=uggestions to impro#e the operating profit of the organi4ation are as followsD
E As coal and oil are the ma0or raw materials for the production of Blectricity. 8a@imum
care is to be ta,en to see that there is no wastage of raw material in the process of
production. High 'uality coal is to be used for the ma@imum production of the
Blectricity. As the such the amount spent on the raw materials has to be increased for
the ma@imum and efficient production of Blectricity.
E Fperations and maintenance cost can be reduced by concentrating on certain areas.
Bmployee cost can be reduced by gi#ing proper training to a group of employees who
are 'uic, in learning and capable of doing the wor, in efficient manner. +y doing so,
amount spent on repairs and maintenance is also reduced as the machinery will be
properly utili4ed by the manpower. The rebate and CC e@penses can be reduced as a
result the FK8 cot may be reduced.
E )inance charges can be loo,ed for if there are any possibilities of reducing them. As
depreciation can not be minimi4ed as the machinery loses its efficiency year by year.
=o, it has to be depreciated at certain rate. Interest on fi@ed capital is also can not be
reduced.
E =ales can be increased by reducing non operating income, increasing a#erage incenti#es,
#ariable cost reco#ery. As a result, the total sales #alue will be increased.
E Fnce the sales #alue is increased and cost of net generation is decreased, the
operating profit will be increased.
3%
6I6ILOGRAPHY
E FINANCIAL ACCOUNTING 1 R<P<TRI3EDI
K MANAGEMENT ACCOUNTING1 N< SRINI3ASAN
K COST ACCOUNTING 1 ;AIN & NARANG
K ANNUAL REPORT OF NTPC<
K FINANCE FOR NON1FINANCE E5ECUTI3E REPORT
K DETAILED PRO;ECT REPORT OF RSTPS<
K WWW<NTPC<CO<IN<
3