Study of Financing of

Projects
And
Revenue Budgeting
Presented by-:
SAHIBA GULATI
F(A)
127

 Power sector 4th largest after US

china russia
In terms of fuel, coal fired plants
acounts for 59%
..hydropower17%....natural gas
9%...renewable energy 12%

history
Founded in nov 1975.1st power
project in 1976 singrauli up
Got listed on bse on 5nov2004 issue
price 62pershare

 Head quarters - Delhi, India

Key people - Shri Arup Roy Choudhary (Chairman & MD)
NTPC operates from 55 locations in India, one
location in Sri Lanka and 2 locations in
Bangladesh.
NTPC Limited, a Maharatna status Company, is
the largest state-owned power generation
company in India. NTPC is primarily in the
business of generation and sale of bulk power
and is engaged in the engineering, construction
and operation of power generation plants.
Incorporated under co.s act 1956 as govt co
26000 approx ppl

Vision and Mission

Vision
To be the worlds largest and best power
producer, powering Indias growth.

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

More about ntpc

Present installed capacity of NTPC is 43,128 MW
(including 5,974 MW through JVs) comprising of 38
NTPC Stations (17 Coal based stations, 7 combined
cycle gas/liquid fuel based stations), 7 Joint Venture
stations (6 coal based and one gas based) and 7
renewable energy projects.
It has been operating its plants at high efficiency
levels
It is listed in Forbes Global 2000 for 2014 at 424 th
rank in the world
NTPC operates from 55 locations in India, one
location in Sri Lanka and 2 locations in Bangladesh.

INVESTMENT DECISION AT
To expand and set
up new plants to
grow and
contribute to
infrastructural
development of
India.

Feasibility reports of
a power project are
prepared.

If feasible in all
respects then
investment decisions
are approved by
higher authorities.

Next step is to
acquire funds to
carry out those
projects

Reviewed by
different
departments to
check the financial,
technical,
economical
feasibility

Need for funds

Capital assest requirmemt

Dev of new products
Short term cap
Labour cost

SOURCES OF FUNDS

EQUITY =funds by owner +

retained
DEBT - domestic / ecb

ON THE BASIS
OF TIME
Long
termLoans
Mid-term
loans
Short term
loans

Presence of Type of
a collateral fnancing

Unsecured
loans

Secured
loans

Balance
Sheet
Financing
Off Balance
Sheet
Financing

CLASSIFICATION OF LOANS

REVENUE BUDGET

It provides an estimate of internal

generation of funds from operations,
which would be available for
financing the capital expenditure,
meeting the loan repayment
obligations, etc

OBJECTIVES

To ensure coordination in planning

Basis for forecasting profitability
Basis of control over operational
expenses and working capital
To inculcate greater cost
consciousness in the organization

OVERALL FRAMEWORK
Region level (RHQ)
Corporate Centre (CC)

Bottom up approach
Zero based budgeting
concept

BUDGE
T
CENTRE
S

BUDGE
T
CONCE
PT

BUDGE
T
HEADS

BUDGE
T
PERIOD

Cost heads/centres

Annual basis

BUDGETING PROCESS

Operating
parameters
Fuel expenditure
O&M expenditure

STATION
LEVEL

RHQ LEVEL
Employees cost
Administration
and general
expenditure of
RHQ
Debtors and
Rebates

Interest on
working capital
Employees cost
of CC

CC LEVEL

ON THE JOB TRAINING

In first week , I got an overview
about the company ( POWER SECTOR
) . I was asked to calculate CAPEX of
various projects.
In second week , I learnt about
FINANCIAL APPRAISAL. Conclusion
were drawn by comparing WACC and
IRR.
In third week , I learnt about IDC and
EDC.

 In Fourth week , I learned about the

investment decision made in
different projects by NTPC.
In FIFTH week ,I have learned about
ESOP and OFS. I also analysed the
CERC foms i.e. CENTRAL ELECTRICITY
REGULATORY COMMISSION(CERC).
In SIXTH week, I learned how to
acquire funds to carry out feasible
projects.

 In 7th week , I gained knowledge

about calculation of actual
expenditure .I compared the
statements of actual expenditure in
balance sheet with the data provided
by the site reports.
I also got the opportunity to visit J &
K BANK in last week.

THANK YOU