5 years of Sustained Efforts Towards Business Excellence

FICCI
25 July, 2007 Sunil Wadhwa
Chief Executive Officer NDPL

NDPL Consulting
North Delhi Power Limited

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection
Network Reliability Improvement Reduction in AT&C Losses Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Geographic Description

Joint Venture of TATA Group with Delhi Govt. NDPL % 51:49
BSES Yamuna BSES Rajdhani
MES NDMC

5 years of Sustained Efforts towards Business Excellence

NDPL Profile
Turnover (FY 2006-07) Peak Load Annual energy requirement (FY 2006-07) Total registered consumers (0.743 Mn on T/o) Number of employees Area Population serviced in Network area (approx) Per Capita Consumption (Units) Number of consumers per Sq.Km Employees per Mn. Unit input Load / Energy Growth Rs. 2052 Cr (enhanced from Rs 1100 in FY 03) 1055 MW 5950 Mn. Units 0.91 Mn. (Actual estimated 1 Mn.) 3700 (5600 in July 2002) 510 Sq Kms 4.5 Mn. 1245 (National Average of 500, Mumbai – close to 850) 1784 (Only Registered) 0.62 07% / 05%

5 years of Sustained Efforts towards Business Excellence

Strategic Roadmap – pillars for 2002-07
Strategy for 2002-07 AT&C Losses <25% Consumer service & IT Interface to be comparable with world standards System Reliability to be comparable with best utilities in India. Performance Orientation through Change Management

>50%

1,00,000 backlog complaints

No planned exp. on infrastructure improvement past 3yrs

5400 erstwhile DVB staff with Unfavorable working conditions

What NDPL had inherited AT&C Losses >50% No concept of consumer service & IT Interface Electricity Supply system on the verge of collapse Lack of Performance Orientation

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection
Network Reliability Improvement Reduction in AT&C Losses Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Initial Challenges in July 2002 – Power Supply
• NDPL inherited an old dilapidated Network, which was characterized by the following attributes:

Transformers’ failure w.r.t. installed capacity was as high as 11%
Reduced to insignificant level of 0.76% at present

48% Streetlights Functional
Increased to 99%

5 years of Sustained Efforts towards Business Excellence

Power Supply Improvement - Initiatives
• Interventions undertaken as a comprehensive integrated plan of:
Run-Repair-Replace Options – CAPEX Plan prepared till FY08 Roadmap for Network Reliability & N-1 Redundancy (66 & 33 kV Network is on N-1) Automation & IT Roadmap (formulated in association with M/s KEMA, USA)

Revamped Substations

5 years of Sustained Efforts towards Business Excellence

Breakthrough Initiatives
• Unmanned Automated 66 kV, 33 kV Grid Stations. • State of the art SCADA center • High Voltage Distribution system. • Arc-proof Package Units at 11kV Network • Remote operated GSM based Street Lighting switches. • 24x7 Operational Stores, material delivery at site.
Delhi’s first unmanned grid Delhi’

NDPL’s SCADA Center NDPL’

Delhi’s first packaged station Delhi’

5 years of Sustained Efforts towards Business Excellence

Network Augmentation
Particulars Level 66 kV Transformation Capacity Total 66 kV Transmission Lines 33 kV 11 kV Total 33 kV 11 kV Unit MVA MVA MVA MVA km km km km On takeover Jul 2002 860 791 1703 3354 176 156 2245 2578 2007 1450 1500 2837 5787 274 291 3232 3771 % Change 69 90 67 73 40 87 44 46

Capital works of over Rs 1350 Crores commissioned in just 5 years

NDPL has met highest ever demand of 1055 MW this Summer!!
5 years of Sustained Efforts towards Business Excellence

GIS – Salient Features
• Complete Geography mapped. • Accurate Land base to the extent of 1 meter accuracy • Network at all voltage level mapped • Grid and Substation Internal Equipment Mapped • More than 0.8 Mn Consumers mapped
5 years of Sustained Efforts towards Business Excellence

GIS-Application & Usage
• Technical Feasibility & all new and augmentation Scheme Preparation • Fault Management • Premises location for Revenue Recovery • Map for Right of Way Approval • Project Monitoring • Other commercial applications- New connections, metering, dues checking etc
NDPL has won the “PC Quest Best Information Technology Implementation Award 2007” under the category of “Most Challenging Project” for Successful Implementation of GIS
5 years of Sustained Efforts towards Business Excellence

Results – Transformer failure rate
12% 10% 8% 6% 4% 2% 0% Takeover 2002-03 2003-04 2004-05 2005-06

11%

6.43% 5.04% 3.52% 0.89% 0.76% 2006-07

Transformer failure rate reduced to insignificant levels

5 years of Sustained Efforts towards Business Excellence

Reaching out to consumers..
Call Received at Call Centre SMS Sent to concerned crew K.R. Kalra 32B Rohini No Current 15mins

Complaint attended & Call Centre informed

Consumer informed & Call closed

SMS based Fault Management System significantly improved the fault Restoration time

load shedding schedule in event of Grid Shortages

Advance Intimation to consumers -

5 years of Sustained Efforts towards Business Excellence

Dilapidated Condition of Poles

Revamped –Project Last Mile

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection
Network Reliability Improvement Reduction in AT&C Losses Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Comparison of AT&C Target & Actual
55 Percentage AT&C Losses 50 45 40 35 30
26.52 23.7

VICTORY CURVE
53

47.79

AT&C Loss Trend PrePrivatisation

44.86

AT&C Loss Trend Pre-privatisation

40.85 35.35
33.79

31.1

25 20
Pre Pre Opening FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07

Year
Target Loss Level Bid Loss Levels

Actual Loss Level

5 years of Sustained Efforts towards Business Excellence

Comparison of Tariff Envisaged & Actual Tariff
% Cumulative Increase in Tariff
50% 45%
% C u m u lative In crease 39% 33% 43%

40% 35% 30% 25% 20% 15% 10% 5% 0%
0% 5% 10% 21%

18.00% 14.00%

18.00%

2002-03

2003-04

2004-05

2005-06

2006-07

FY
% Cumulative Increase in Tariff envisaged % Cumulative Increase in Actual Tariff

5 years of Sustained Efforts towards Business Excellence

Saving to Government
Power Sector Reforms Through Privatisation
Transitional Support Vs Continuing With Financial Loss
67% 62% Scenario II 57% AT&C Loss (%) 52% 47% 42% Rs.549 Cr. 37% Rs.307 Cr 32% Pre-privatisation 27% losses burgeoning 22% Post-privatisation: Low ering Losses leading to reduced subsidy Jul 02 Mar 03 Mar 04 Rs. 51 Cr Scenario III Mar 05 Mar 06 26.52% 23.7% Mar 07 Rs. 380 Cr Rs. 116 Cr 33.79% Rs.625 Cr. Rs.93 Cr. 53.40% Rs. 400 Cr Rs. 550 Cr 51.09% Rs.170 Cr. 44.84% Rs.354 Cr. Rs. 570 Cr Rs. 600 Cr Rs. 625 Cr

Scenario I: Losses growing at same trend as in pre-privatisation Scenario II: Losses maintained at the same level as of privatisation. Scenario III: Losses lowered post privatisation.

Scenario I Scenario II Cumulative Saving Rs. 2745 Cr

Apr 01

In 2002, Power Theft was about Rs 4 crores per day in NDPL area- Now it is at 1.6 Cr./day Increase in NDPL paying capacity reduced Transcos dependence on Govt. to NIL Domestic Tariff continues to be same since July 2004
5 years of Sustained Efforts towards Business Excellence

AT&C Losses – Initial Challenges
• Deficiencies/Inadequacies in Metering systems/Technology – major cause of Revenue leakages • Erroneous consumer database – discrepancies resulting in non delivery of Bills/disconnection notices etc. • Collection inefficiencies – absence of consumer friendly payment avenues • Organized Theft of Power – ineffective process to deal with defaulters
Worsening the situation was the fact that the processes were prone to manipulation and hence resulted in unethical practices 5 years of Sustained Efforts towards Business Excellence

Metering Systems – plugging the Revenue leakages
• Meter Repository System - each Meter is issued against a specific K No. based on a random selection through a customized application.
this eliminates the probability of misuse & installation at misdirected place – institutional check on manipulation. • 60% of the Revenue gets generated through Automated Meter Reading (all high end consumers > 15
kW) MRS Screen shot

• Pre paid Metering – enables consumers to track and monitor their consumption.

Prepaid meter

GSM Modem with meter

5 years of Sustained Efforts towards Business Excellence

Power Theft Control – Initiatives
• Electrification on HVDS and LT ABC network – To prevent tapping in theft prone areas and reduce technical losses New Connection Camps in slums DT wise Energy Accounting for calculation of Transformer wise AT&C Losses

• •

HVDS at Basaidarpur

Removal of Hookings & New Connection camps for slum dwellers

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection
Network Reliability Improvement Reduction in AT&C Losses Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Business Process Reengineering
Consumers

CCG
Call Center
Customer care Center

Website

E ail

letters

Drop boxes

CMG

MMG

MRG

RBG

RCG

RRG

RDG

RAG Policy Regulatory Advocacy Compliance Bench Marking Data Revenue Analysis Protection Infrastructure Support User& System Administration

SAMBANDH – Integrated Commercial Package software- Industry First!!
5 years of Sustained Efforts towards Business Excellence

Consumer Feedback - IMRB Quarterly Survey
75.00 63.00 75.50 76.50

70.25

NDPL

HCB

HRB

KCG

Xpresss

Consumer Feedback is Key to our Improvement Initiatives
5 years of Sustained Efforts towards Business Excellence

New Connections - Home Delivery

Field Service Executive (FSE) visits the consumers’ premises and completes all formalities for new connections.

New Connection at Door step

• Meter Installation through VAN Model – initiative towards enhanced output, each Van installs about 7-8 meters per day.
Meter Installation Van Initiatives towards expediting energization period of new connections 5 years of Sustained Efforts towards Business Excellence

Average Energization period of New connections
70 60 50
days

58.3 51.8 41.68 36.5 33.9 26.4 14.8 9.5 2002-03 2003-04 2004-05 2005-06 13.9 9 2006-07

40 30 20 10 0

from date of application

from date of payment

Attribute changes done within 48 hours

5 years of Sustained Efforts towards Business Excellence

IT Enablement – ushering in an era of transparency

• SUGAM – Billing database of 100% of consumers on website – first time in India, institutionalized transparency from the very beginning. SUGAM enables consumers to:
View Bill View Consumption Graph Print Duplicate Bill.
Screen shot from SUGAM

5 years of Sustained Efforts towards Business Excellence

Payment Avenues – Consumer convenience
• Payment avenues increased from 20 at the time of takeover to 1100+ now. • State of the art Collection centers instituted with all civic amenities.

• Consumer comfort redefined with Automatic Cash/Cheque Collection machines • Payment of Energy Bills through website also – by credit cards – website certified as secure by ‘Verisign’.

5 years of Sustained Efforts towards Business Excellence

Consumer Relationship - Segment wise approaches
Structured Approach to Consumer Relationship – CROs, Client A/c Managers, Eminent Citizens, RWA & IWA Interactions

RWA meetings in progress

Public Hearing Forums- Concerns addressed at Door step of Consumer
‘Meet the Public Representative ‘ scheme launched

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection
Network Reliability Improvement Reduction in AT&C Losses Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Initial Challenges in July 2002 - (Admin. & HR)

Inherited a huge workforce of 5638 employees – apprehensive with regard to their future in the changed scenario. Training – privy to only the privileged few – seen as paid vacations. No effective Corporate Structure – No clear Roles & Responsibilities with reference to JDs & KRAs. Employee grievances – took long to resolve Poor Working Conditions and unhygienic Building environment
The foremost priority was to earn the Right to Govern by developing a sense of assurance in their combined ability.

5 years of Sustained Efforts towards Business Excellence

Organization Structure & Manpower

• Organization Structure with clear Manpower Planning for each department • Induction of New Talent – ETs & MTs as catalysts for the Change Management.

Corporate set up in place – focus on Roles & Responsibilities through specific JDs & KRAs of individuals 5 years of Sustained Efforts towards Business Excellence

Employee Competency Development
• Training Need Identification through the

Performance Appraisal system itself.

• Institution of CENPEID – in association with

USAID to cater to the training needs of its own and other SEB’s employees.

• Training Policy formulated – 6 days for

executives and 2 days for non executives.

• Initiation of CFT approach – for

handling critical concerns cutting across departments.

5 years of Sustained Efforts towards Business Excellence

Employee Communication
• Joint Interaction Forums constituted for effective two way communication. • LGIE in association with ACCORD – participation across all levels of employees. • Introduced Town Hall Meetings – unstructured reviews aimed at two way communication. • SURKHIYAN – monthly news bulletin for employees. • SARTHI – forum for resolution of Grievances instituted.
Policies on Ethics, Harassment & standardization of Employee rules

5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility

5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility
- Energy Clubs

Energy Conservation Camps implemented in schools with 15000
children participation

Urja Melas are regularly organized where competitions are held between participating schools.
Energy Club is now a nation wide phenomenon as NDPL has partnered with CII to replicate the success of this model in neighboring states also.
5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility
- Glimpses of few initiatives

SoS, an NGO has adopted Bawana as one of the 131 villages across India, in association with NDPL.

Organization of free Health camps for Industrial workers in NDPL areas such as Bawana, Narela, Wazirpur etc.

Active support to MSSI patients in NDPL area NDPL is a signatory to the UN’s Global Compact Charter covering Corruption, Human Rights, Environment & Labor Standards
5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility
- Glimpses of few initiatives

• Blood Donation Camps: Regular Blood Donation camps organized in association with Red Cross Society.

NDPL PROJECT MEGAWATT SMILE

Initiative towards improvement of quality of life of Slum dwellers in N-NW Delhi
5 years of Sustained Efforts towards Business Excellence

Awards & Recognitions.. to name a few
• NDPL has been conferred with the National Award for Meritorious Performance for two consecutive years 2004-2005 & 2005-2006.

Hon’ble PM presenting the award

• NDPL created history by being the first TATA Group organization to have surpassed the 500 barrier in Tata Business Excellence Model (TBEM), scoring 516 in its very first attempt itself.

Mr Ratan Tata presenting the award

5 years of Sustained Efforts towards Business Excellence

Awards & Recognitions.. to name a few
AWARD FOR BEST BILLING SYSTEM

Public Lok Adalat Award for the 10000 settlements in 2 ½ years

Transparency in Billing System

Intelligent Enterprise Award For IT initiatives

Award for Corporate Social Responsibility

5 years of Sustained Efforts towards Business Excellence

YOUNG NDPL … Mature achievements Settlements through DLSA

Achiever’s Award for Record Settlements (10,000 cases) in Two & half years
–Award instituted by DLSA “When we studied the DLSA website, it is indeed reassuring to know the successful settlement of more than 10,000 cases pertaining to North Delhi Power Ltd, in the period Oct 2003 to July 2006, at the aegis of DLSA, prelitigation stage”
Dr A.P.J Abdul Kalam, 10th November 2006
5 years of Sustained Efforts towards Business Excellence

Leveraging our Knowledge base..
• NDPL has undertaken the following Prestigious consultancy projects:
Setting up of a Call Center for Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL), Noida in association with M/s CMC Ltd. Restructuring of Transmission & Distribution sector of Mauritius in association with M/s TCS Ltd. Capacity building program in Nigeria for effective management of a distribution company.

• NDPL is in the process of taking up consultancy projects in leading utilities based on the following core areas:
Network & Reliability Improvement AT&C Loss Mitigation Energy Audit & Accounting Consumer care initiatives
5 years of Sustained Efforts towards Business Excellence

Thank You

5 years of Sustained Efforts towards Business Excellence

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