PROJECT MANAGEMENT IN THERMAL POWER

PLANT- NTPCs EXPERIENCE

By

ATANU DUTTA
National Thermal Power Corporation Ltd.
1

CAPACITY ADDITION

A. EXISTING CAPACITY :

32194 MW

B. ONGOING PROJECTS :

17930 MW

C.IDENTIFIED FOR 11TH&12TH PLAN:

41531 MW

CONTINUED
2

CAPACITY ADDITION
As on 13/10/09

B.

ONGOING PROJECTS :

SR NO

PROJECT NAME

17930 MW
PROPOSED CAPACITY IN MW

Sipat-I

1980

Barh-I

1980

Koldam (Hydro)

800

Simhadri-II

1000

Korba-III

500

Barh II

1320

Farakka-III

500

CONTINUED
3

CAPACITY ADDITION
SR
NO

PROJECT NAME

CAPACITY IN MW

Loharinagpala (Hydro)

600

Tapovan Vishnugad (Hydro)

520

10

Vallur-JV with TNEB (Ph-I & II)

1500

11

Indira Gandhi Thermal Power Station, Jhajjar

1500

12

Bongaigaon

13

Nabinagar Railway JV

1000

14

Mauda

1000

15

Rihand-III

1000

16

Vindhyachal-IV

1000

750

CAPACITY ADDITION
C. NEW PROJECTS FOR 11th & 12th PLAN: 41531 MW
SR NO PROJECT NAME

PROPOSED CAPACITY IN MW

Muzaffarpur Expansion

390

KAWAS-II

1300

JHANOR-II

1300

Nabinagar-II -JV BSEB

1980

Meja UP -JV UP

1320

Mouda-II

1320

Solapur

1320

North Karanpura

1980

Rupsiabagar Khasiyabara (Hydro)

260

10

Non conventional power project

1000

11

Rammam-III (Hydro)

120

12

Lata Tapovan (Hydro)

171
CONTINUED
5

CAPACITY ADDITION
NEW PROJECTS - 11th & 12th PLAN
SR NO PROJECT NAME

PROPOSED CAPACITY IN MW

13

Kudgi Ph-I&II

4000

14

Lara (C.G)

4000

15

Singrauli-III

500

16

Vindhyachal-V

500

17

Gadarwara (MP)

2640

18

Bargad (UP)

4000

19

Tanda-II

1320

20

Darlipalli-I

3200

21

Unchahar-IV

500

22

Nuclear Power Project

2000

23

RAJEEV GANDHI CCPP-II

1950

24

Marakkanam-Ph I &II (TN)

4000

25

Kolodyne (Mizoram)

460
6

Power Sector Reforms

ROADBLOCKS IN
POWER SECTOR DEVELOPMENT
Low Plant Load Factor (PLF)
Inadequate investments in R&M
High T&D losses
Inadequate T&D network
Non-optimal Hydro-Thermal mix
Poor Financial health of SEBs
Funds Constraints
Other infrastructure inadequacies (Railways, Ports etc.)

 Project Management of Multi Projects by

one Organisation requires different
handling than the Project Management
of only one Project .
In multi projects, Systems Approach in
Project Management is essential.

Integrated Project Management

and
Control System
(IPMCS)
10

Salient Features of NTPCs Project Management

Global Competitive Bidding.

Transparent Procurement System.
Detailed Engineering after Order.
Computer

Based Integrated
Management System.

Project

11

The Phases of NTPC Project

PROJECT CONCEPTUALISATION
PROJECT PROPOSAL, APPRAISAL

PROJECT PLANNING AND DEVELOPMENT

PACKAGING
ENGINEERING AND PROCUREMENT
MANUFACTURE & DELIVERY
PROJECT EXECUTION
CIVIL CONSTRUCTION
INSTALLATION
COMMISSIONING
PERFORMANCE TESTING
EVALUATION AND CLOSING

12

NTPC PROJECT MANAGEMENT

Proper Scrutiny of the Project- Techno Economy
Timely Identification and placement of Project Leader
Timely Identification and Placement of Good Project Team
Demarcation of Land Boundary
Sound Financial Tie up including internal resources
Liaison with Govt Agencies- a proactive approach
Comprehensive Rehabilitation & Resettlement Policy
Effective Project Planning, Scheduling & Monitoring.

I T & Communication Infrastructure

Performance Budgeting System

Engineering Competence
Contd..
13

contd

Established and Transparent Procurement Procedures

Vendor Assessment
Employee Training & Education
Incorporating Learning from past experience
Healthy Industrial Relations
Comprehensive Project Incentive Scheme
Comprehensive Quality Assurance
Single Point Project Implementation Responsibility

- Project Manager

Adequate Delegation at Various Levels

Empowered Project Review Team(PRT)

14

IPMCS
PROJECT IMPLEMENTATION COMPRISES OF :

Pre order network for each projects

Master network (L1)
Procurement of materials and tendering Contracts - includes the
following :

Packaging concept for effective and faster implementation

Qualification to ensure competition from competent parties
Pre defined evaluation criteria
Contractor selection by Techno-Commercial considerations
L2 network for each contract/package
Post award execution and expediting

Engineering and quality assurance system

L3 programme for site activities
15

INTEGRATION OF 3 TIER
PLANNING, REVIEW AND CONTROL SYSTEM
Pre Order Net Work
L-1 Tier
Planning

Top
Management
Reviews

L-1 Project MNW

Engg.
L2 SCH.

Contract
L2 Network
(Manf. & Dely)

Contract
L2 Network
(Site Act.)

L-3 Tier
Planning

Engg.
L-3 Program

Contract
L-3 Program
(Manf. & Dely)

Contract
L-3 Program
(Site Act.)

L-3 Tier
Review

Fortnightly
Reviews
GM / HOD

Weekly
Reviews
GM / HOD

Weekly
Review by
HOD

L-2 Tier
Review

T.C.M.

C.R.M.

Site Proj. Review

L-2 Tier
Planning

L-1 Tier
Review

Monthly
Exception
Report

Monthly Project Review (PRT)

16

PRE ORDER NETWORK

I : Preparation of Comprehensive feasibility

report and various statutory clearances and
Investment Approval

II : Infrastructural development

III : Tendering of major packages

17

Pre-Order Network

18

PRE ORDER NETWORK

I : Preparation of feasibility report and various statutory &

mandatory clearances and Investment Approval

Project identification & appropriate site selection

Pre- feasibility studies including environmental impact assessment
Statutory clearance (central & State)
Project design memorandum
Mode of Funding & tie-up
Fuel linkage
ATS tie up
Initiation of Land Acquisition Proceeding
Techno- Economic Clearance
Power purchase agreement
Appraisal by independent financial institution
Investment Approval
19

II : Infrastructure development

Infrastructural development covers the activities at site such as

following :

Survey & soil investigation

Tie up of cement and steel

Land acquisition and R&R plan

Construction power and water

Posting of project manager and nucleus

site organisation

Construction offices, storage sheds

Transit camp/Guest house

Communication facilities

Site levelling

Boundary wall, Gate & fencing

Approach road, plant roads and drains

20

III :Tendering of major packages

Review of Packaging
Contracting for timely implementation of the Project.

Major Packages are:

Steam Generator

Water System

Turbine generator

Coal handling plant

Civil & Structural Steel works

Switchyard

Transformers & Switchgear

Station C&I
21

 L1 (MASTER NETWORK- MNW)

MNW in form of PERT Network is Prepared.

Master Network identifies the milestones for key events for

each package in the areas of engineering, procurement,
manufacturing, despatch, erection and commissioning.

Interrelationship between various activities is clearly

identified in the master network.

22

L1 Master Network
Simhadri TPP

23

 L2 NETWORK
L-2 NetWork gives the Schedule for Starting/Completion of Activities

L2 network is the contractual documents indicating the time frame

from start to completion of package within the frame-work of master
network (L1).

L2 network is prepared by the contractor and finalised by Corporate

Monitoring Group in association with Engineering , Contract Services,
Quality Assurance, Inspection and site.

It includes shop manufactured items/ materials and bought out items.

Adequate cash flow tie up specifically with PSU/Contractor.

24

L2 Network - Civil Work

Simhadri TPP

25

 L3 PROGRAMME

L3 programme is a three monthly rolling programme

prepared by site within the time frame of L2 schedule
indicating various items and quantity to be executed in each
month.

Resources and all other inputs to execute these quantities

are clearly mentioned.

From the three monthly programming, a

monthly/fortnightly/weekly execution programme is
prepared indicating next months/fortnights programme /
quantity, drawings, materials, fronts and resources
availability etc.
26

THREE CONTROL CENTRES :

ENGINEERING

MANAGEMENT

CONTRACTING,

INSPECTION &

EXPEDITING
SITE

MANAGEMENT
27

1. ENGINEERING MANAGEMENT
Preparation of comprehensive list of Engineering
Activities
Scheduling of engineering activities at L2 level
within the time frame of master network (MNW)
Scheduling of Drawings/Data submission by
contractor and approval
Releasing timely construction drawings to site
ISO 9001 Compliant
28

QUALIFYING REQUIREMENT :

IN NTPC QRs are finalised before freezing final specifications of

packages for tendering.

QRs are made so that Contractors with sound Techno-Commercial

capabilities only participate against NTPC tendering and Contract is
awarded to sound and capable Contractors.

A data bank of sound and capable Contractors are prepared and

maintained for reference of future contracts.

The QRs are reviewed by standing committee consisting of D(Proj),

Engineering and Contracts representatives so as to take care of
Technological and Market Development.

29

2. CONTRACTS MANAGEMENT

Contract Packaging :
Initial

Projects-65-70 pkgs.

Subsequent
Current

Projects-55-60 pkgs.

Projects:14-30 pkgs.

Tendering and Ordering

Follow up for timely delivery

ISO 9002 Compliant

30

MDCC ( Material Despatch and Clearance

Certificate)

NTPC specifies Customer Hold Points, with regard to different

manufacturing stages, in the approved QP based on which
inspections are carried out by NTPC at every Customer Hold Points
and CHP clearance are issued.

MDCC is issued to ensure that materials as per approved QP are

manufactured & despatched.

L/C is negotiated by the Banker/Contractor only on presentation of

MDCC in original I addition to other relevant documents.

31

3. SITE MANAGEMENT
Development of L3 Programme
Execution of site activities as per programme
Ensuring desired quality in site activities
Performance budgeting for site activities
Local field engineering
Weekly progress review of each package by concerned
in-charge.
Fortnightly project review by GM / Head of Project.

4. TOP MANAGEMENT REVIEW

32

Deviation at Site in Layout / Engg. Issues

Situation arises because of fouling of piping with structures, or

fouling of structures with equipment, or when some specified are
not available.

For expeditious project activities, appropriate deviations are made

at Site and this are regularised by proposals sent by Site to Corp.
Engg. for according technical approval.

In case of Site routed piping where no layout drawings are used by

Corp. Engg., Site will workout the layout and send it to Corp. Engg.
after getting the approval of GM(Projects).

33

Contingency Arrangement

Cost-benefit analysis is done before adopting any contingency plan.

Contingency arrangements are made to ensure major milestone

dates do not slip because of non-availability of certain inputs.

To ensure availability of critical fronts for achieving major

milestones following contingency arrangements were made for
Vindhyachal Stage-II:

Interconnection of Stage-I & Stage-II DM Plant to ensure water for

Boiler Hydro test of Unit-7.

Interconnection of Stage-I PT Plant to Stage-II DM Plant to ensure

adequate DM water for Unit-7 Boiler Commissioning.

34

COMMISSIONING ORGANISATION
In order to streamline the planning & Management
of Commissioning activities at NTPCs Projects;
Commissioning Organisation is set up with the
following three bodies:
Commissioning
Working

Panel

Parties

Commissioning

Steering Committee

35

COMMISSIONING Steering Committee

The Commissioning Steering Committee is the governing body
responsible for formulating the overall policy for the safe and efficient
Commissioning of the plant.It is the apex body for taking all crucial
decisions and overcoming any constraints relating to plant completion
and commissioning.
Members of Commissioning Steering Committee are :
General

Manager (Project)- Chairman

General

Manager (OS)

General

Manager (P.E.)

AGM

(Project)

AGM(O&M)

Contractors Representative (Project Manager Level) of Main

Packages.

36

COMMISSIONING PANEL
The main functions of Commissioning Panel are to prepare
commissioning network, approval of all documentation and
associated procedures, monitoring of commissioning
activities, to compare and accept test results, to prepare
periodic exception reports, to form documentation control
centre for controlling the flow of documents etc.
Members of Commissioning Panel are :

AGM (P) /AGM(O&M)

DGM

( Commn./Elect./Mech./C&I)

Erection

Group Leaders
37

WORKING PARTIES
Working Parties are formed to deal with each section of the
plant or in some cases the related sections of the plant
whose commissioning will be inter-dependent.The individual
working parties will be required to undertake the
responsibility
of
preparation
of
entire
commg.
Documentation. During commissioning the individual
working team will see that all checks and tests are
thoroughly carried out and completed.
Members of Working Parties are :
Leaders
Leader

O&M Groups(Turbine/Boiler/Eect./C&I/Offsite/Chemistry)

Erection Groups

Contractor

Package-wise
38

REVIEW & CONTROL SYSTEM

Site Review Meetings

Weekly Review by concerned Package

Engineer at site with Contractors. Critical &
Major Pckgs. by HOD.

Fortnightly Review of project by Head of

Project/GM.
(Contd...)
39

CONTD..

Project Review Team (PRT)

PRT for each project comprising executives

from three Control Centres, viz. Engineering,
Contracts & Site. Also has members from
service functions.

Project Review Team meetings take place

every month chaired by the Head of the project/
GM. Detailed agenda issued in advance.

(Contd...)
40

Contd..

PRT Meeting ensures :

Resolve inter control centre problems

Identifying constraints & hold ups for present and future

Taking corrective action on various critical items.

Corporate Monitoring Group,

Issues MOM of PRT Meetings

identifies critical and major issues.

Puts up exception report to top management.

(Contd...)
41

TECHNICAL CO-ORDINATION MEETINGS (TCM)

Technical Coordination Meetings take place with
vendors to discuss on various engineering
requirements, finalisation of engineering details within
the time frame and schedules of engineering activities.
TCM is convened by Engineering Control Centre.

Frequency of TCM is minimum once in a month. In

initial stages of project frequency is high (2 to 4)
depending on the requirement.

42

Contract Review Meetings(CRM)

Contract Review Meetings are convened by Contract

Services with the vendors

Reviews progress of manufacturing & despatch

Resolves various contractural issues for expediting

supplies.

Progress of manufacturing is reviewed w.r.t. L-2

Network.

CRM are generally held at manufacturing works to

ascertain the status of the manufacturing.

CRM is held atleast once in a month for major packages.

43

Management Reviews
Regional Executive Director reviews the Critical
Packages and the progress of Project .
Director (Project) reviews the progress of the
project as per requirement.
Other functional Directors also review project
progress from time to time during their visit to
site.

44

Contd..

CMDs review of the project as per

requirement.
Project Review in Management
Committee , which are held once in a
quarter.

45

Management Information System (MIS)

A From Site
Package wise weekly review at site:

P&S Dept at site generates report and puts up to Head of

Project/GM.

Fortnightly Project Review at Site by HOP/ GMAction plan by P&S.

Monthly Progress Report from Site:

P&S compiles progress- actual vis--vis targets.This

is a detailed Quantified progress report.
This also indicates rolling programme for next
3 months
Contd..

46

Contd..

B Vendors Monthly Progress Report:

Each vendor submits monthly progress report.

The report is in pre-decided formats.

It covers all areas such as Engg., Ordering, Manfg.,

Quality & Despatch.

It is sent to CMG, Site, Engg. & Contracts.

Contd..

47

Contd..

Minutes & Exception of Monthly PRT Meeting:

CMG circulates MOM to all control centres for
actions. Based on PRT meeting, Site progress
report & CRM, CMG prepares every month
exception report highlighting critical issues
requiring immediate attention of Management.

Contd..

48

Contd..

Monthly Progress Report from Contract Services:

Report on pre-award activities is prepared by CS.
Monthly Report from Regional EDs : Report from
Regional Executive Director for CMD covering all aspects
viz Operation, Projects, Commercial etc .

Minutes of Management Committee Meetings &

Top Management Review : Action plan based on
these reviews are prepared.

49

A comparison chart of milestones of few best achieved 1 st 500 MW units of NTPC

Ramagundam
Milestone

Date

Month
from MP
order

Korba
Date

Singrauli

Month
from MP
order

Date

Month
from MP
order

VSTPP
Date

Month
from MP
order

Main plant order

Jul-83

Aug-82

Jan-82

Mar-95

Boiler erection start

Mar-85

20

Feb-84

18

Aug-83

19

Feb-96

11

Drum lifting

May-86

34

Feb-85

30

Oct-84

33

Nov-96

20

HT

Jun-87

47

Feb-86

42

Nov-85

46

Dec-97

33

BLU

Dec-87

53

Oct-86

50

May-86

52

Nov-98

44

TG erection start

Dec-86

41

Oct-85

38

Feb-85

37

Jul-97

28

TG Boxup

Aug-87

49

Mar-87

55

Aug-86

55

Nov-98

44

Synch.

Jun-88

59

May-87

57

Dec-86

59

Mar-99

48
50

Commissioning of 1st unit(500MW) from

Main Plant Order(MPO)
Sl. No

Projects

Duration from
MPO(Months)

Date of
Commn.

Singrauli

Dec86

59

Korba

May87

57

Ramagundam

Jun88

59

Rihand

Mar88

66

Vindhyachal

Mar99

48

6.

Simhadri

Mar02

39

7.

Talcher

Jan03

38
51

REDUCING PROJECT COMPLETION TIME

RSTPP-III-2004

TIME IN MONTHS
FORM MAIN PLANT
AWARD TO SYN
FOR 500 MW UNIT

37

TALCHER-II-2003

38

SIMHADRI-2002

39

VINDHYACHAL-1999

48

SINGRAULI-1986

59
0

10

20

30

40

50

60

70

52

REDUCING PROJECT COMPLETION TIME

44.13

VINDHYACHAL-9-2006

TIME IN MONTHS
FROM MAIN PLANT
AWARD TO COD
FOR 500 MW UNIT

42.97

RAMAGUNDAM-7-2004

45.3

SIMHADRI-1-2002

63.17

RAMAGUNDAM-4-1988

KORBA-4-1987

66.17

SINGRAULI-6-1986

65.43

10

20

30

40

50

60

70

53

Integrated Project Management and

Control System has significantly
contributed in NTPCs Capacity
Addition

NTPCs Installed Capacity as

on date: 32194 MW
54

INTERNATIONAL ACCOLADES
FOR NTPC
MARKETLINE INTERNATIONAL, UK, Ranks NTPC as
Sixth Largest Thermal Power Generator globally &
Most Efficient based on 1997 performance data,
amongst them.
ASIA WEEK ranks NTPC as 344th amongst top 1000
companies of ASIA in terms of sales revenue, second
in terms of return on assets & fifth in terms absolute
profit amongst all Asian Electric Utilities
55

INTERNATIONAL ACCOLADES
WORLD BANK Performance audit Report : 1993 :NTPCs record in plant construction cost containment and operating
efficiency has been exceptional, while as an institution it has broken
new ground in organisation and management successfully navigated
the transition from construction to operating company and generally
coped quite well with the problems of rapid expansion
Draft Performance Audit Report : 1998 : The decision to support an efficient national power generation
institution has greatly improved the efficiency of power generation in
India and has, as a result, greatly improved the availability of power to
the country as a whole. NTPC has grown into a highly efficient power
company

56

CONCLUSION
NTPC has adopted dynamic approach and
is in the process of tying up all related
issues towards achieving its ambitious
plan of becoming 50,000 MW plus
company by 2012.

57

THANKS

58