AN INTERNSHIP STUDY REPORT TITLED

“A STUDY OF ORGANIZATION STRUCTURE”

AT
KARNATAKA POWER TRANSMISSION CORPORATION LIMITED
Submitted to
Bangalore University
In the partial fulfillment for the award of the degree of
MASTERS OF BUSINESS ADMINISTRATION
BY
SAHANA .S.T.
REGISTER NO: 09KUCMA047
UNDER THE GUIDANCE OF
Dr. P. TRIVENI
 
 
 
 

           P.G DEPARTMENT OF MANAGEMENT STUDIES –MBA

M.S. RAMAIAH COLLEGE OF ARTS, SCIENCE AND COMMERCE
MSRIT POST, MSR NAGAR BANGALORE-560054. 
KARNATAKA POWER TRANSMISSION
CORPORATION LIMITED
INDUSTRY PROFILE 
GENERAL INTRODUCTION
       The State of Karnataka, with availability of cheap electric power, and
other infrastructure facilities, was conducive for increased tempo of industrial
activity. It became necessary therefore, to augment power generating capacity
by harnessing the entire potential.
The demand for power saw a phenomenal increase in the mid sixties and
onwards with the setting up of many public sector and private industries in the
State. As power generation in the State was entirely dependent on monsoon
and was subject to its vagaries, the State Government set up a coal based
power plant at Raichur is 1260 MWs.
Sources from Ministry of power indicate that during the 10 year period (1991-
2001), the financial health of the State-owned power utilities has rapidly
deteriorated with the aggregate annual loss rising from over Rs.30 billion to
Rs.300 billion. If the raising trend is not arrested and reversed, in the next five
years, this could exceed Rs.500 billion.
It is a recognized fact that in past, of the 3 main segments of the power
industry i.e. generation, transmission and distribution, distribution segment
was getting the least attention, both technically and financially and needed
an immediate action plan. Karnataka is one of the few States in the country,
which are in the forefront of power sector reforms. It caused the Karnataka
Electricity Reforms Act in 1999, which paved the way for establishment of
KERC and reorganization of KEB into KPTCL and VVNL w.e.f. 1.8.1999.
 

DAWN OF THE AGE OF ELECTRICITY- THE CAUVERY

POWER SCHEME 
       The first pole for a transmission line in this country was erected on our
land on 29th May’1901.The 92 miles double circuit 35000 volts
transmission lines between Shivasamudram and KGFwas the longest bulk
power high voltage transmission line in the world at that point in time.on
30.6.1902 Mrs. Donald Robertson switched on the line for the first time,
which marked the dawn of age of electricity in Karnataka. 
       Transmission function in the State has improved to a great extent. The
losses have come down from 6.89% to 4.2% in the last four years. Unlike
distribution, transmission requires huge investments to expand the network,
overcome the constraints and to maintain the current level of performance.
  FUTURE PROSPECTS
       India’s per capita electricity consumption is very low ay 631 kWh at
present. The National Electricity Policy envisages that the per capita
availability of electricity will be increased to over 1,000 kWh by 2012. To
achieve this, the government is expecting addition of about 78,577 MW at
the end of 2012 of which 16,553 MW is expected from hydro, 58644 MW
from thermal and 3,380 MW from nuclear. Although India has significant
potential for generation of power from non-conventional energy sources
(183,000 MW) such as wind, small hydro, biomass and solar energy, the
emphasis is still going to thermal energy sources. India has at presented a
7.5% overall electrical energy shortage and 11% peaking shortage.
       India has set itself an ambitious target of more than doubling per-capita
electricity consumption by 2011 and the Ministry Power projects an
investment need of 9,000 billion Indian Rupees (INR), or US$200. The
government of India has set up a “Power for all by 2012” goal.
COMPANY PROFILE:
Karnataka Power Sector is galloping towards overall development. The
Electricity Act, 2003 has initiated several measures to bring the intended
change in the Sector. Unbundling, Delinking of Trading, Open Access and a
host of other significant aspects have made the State Transmission Utility
totally focused on Transmission functions. 

BACKGROUND INCEPTION OF THE COMPANY

       As part of the first restructuring process, Karnataka Electricity Board
was unbundled into KPTCL and Visweshwaraiah Vidyut Nigama Limited;
these two companies were incorporated with effect from August 1, 1999.
As per the provisions of the Electricity Act, 2003, KPTCL was divested of
its bulk supply business with effect from June 9, 2005.

POWERFUL MILESTONES
KPTCL Highlights
•Total Number of Sub-Stations: 1250
•Total Length of Transmission Line:37189 C Km.
•Present Transmission Loss: 4.2%
•Average Annual Capital Investment: Rs.2000 Crores
 
Looking Ahead
•For the first time in South India, 765kV Sub-Stations are being established at
Raichur and Tumkur.
•KPTCL is well-equipped and has handled 42900 MU of Energy with a peak
load of 6897 MW during 2009-10.
•During the next five years, State has planned to add 17000 MW and KPTCL
is strengthening its network to handle this quantum of power with least
transmission loss.
•Green Energy: Karnataka is the pioneer state in harnessing Green Energy;
KPTCL is equipping itself to evacuate RE effectively.
•SCADA: Supervisory Control and Data acquisition from 23 major generating
stations and 1250 sub-stations spread across the state. First-of-its-kind in the
country through unique V-Sat Communication facility. It enables real-time
data acquisition for energy auditing, energy billing and ABT. First step
towards Smart Gird.
•In Bangalore – the IT City, KPTCL is introducing Seven GIS Sub-Stations
both at 220kV and 66Kv levels to manage high density load.
•KPTCL is creating necessary infrastructure to handle Merchant Power
generated in the State using Gas and Thermal sources.
•KPTCL is offering non-discriminatory opportunity to all generators/traders
•KPTCL is creating a powerful opportunity for investment in the power sector.
VISION
       To make the sector consumer friendly, financially viable and to function
effectively on commercial principles together with its social obligations, a
comprehensive action plan for the next 10-15 years is essential. The following is an
insight into the vision of KPTCL and ESCOMs to steer the sector into the future. 

MISSION-TRANSMISSION UTILITY
       The mission of the KPTCL is to ensure reliable and quality power to its customers.
It is committed to put in place the best and robust Systems and Networks of
Transmission. The KPTCL is committed to achieving this mission through encouraging
best practices in transmission, ensuring high order maintenance of all its technical
facilities and emphasizing best standards in customer service.
       To be the best electricity utility in the country, the KPTCL pledges to optimize its
human and technical resources for the benefit of all its customers. 

MISSION-DISTRIBUTION UTILITY
       The Mission of Electricity Supply Company is to ensure complete customer
satisfaction by providing its customers with quality and reliable power at competitive
rates. ESCOMs is set to achieve this mission through:
•Best practices in the construction and maintenance of distribution network.
•High Standards in customer service.
•Optimum usage of technical and human resources.
Opportunities:
Electricity can be generated from different sources like :
•thermal,
•biomass,
•solar energy,
•NAPTHA based energy and
•wind energy.

Threats:
•Shortage of coal.
•Lack of rain.
FINDINGS
•The Long-term solvency of the firm is progressive.
•KPTCL is growing and grooming as a consulting firm in the power
generation industry.
•Liquidity position of the company is good owing to proper debt
collection policy.
•There is a relative increase in current proportion which reveals that
company is in profit condition.
•KPTCL is absorbing all cutting-edge technology being advent in
the same industry so as to update them with the current trend.
•The company maintains inventory in an efficient manner.
•The company utilized long term funds for Financing Fixed Assets
properly.
•The actual returns on Capital Employed of the company are
satisfactory compared with the target.
 
SUGGESTIONS
•The company should try to minimize the Operating Expenses which
enables the company to save in order to increase the profit.
•Conducting and providing training would help employees keep
update themselves with advanced technology.
•Modernization must be implemented as far as possible in common
operation without affecting quality.
•Turn over must be increased in Global Market by adopting global
strategy.
LEARNING EXPERIENCE
    During the period I have done my project at “KARNATAKA POWER
TRANSMISSION CORPORATION LIMITED”, Bangalore. KPTCL is the
Government Company it provides transmission service throughout the
Karnataka State. But it is a good experience for me to do a project in a
Government Company. It was the experience for me to understand how
actually the various departments functions.
       The various aspects I learnt are defining the role of each employee’s
duties and responsibilities, delegation of authority and accountability. And
the other aspect KPTCL believes transparency, responsibilities, and fairness
in aspects of its operations.
       I gained a great insight on the workings and everyone was very helpful
and co-operative during this project report by giving their helpful hands in
collection of data in their busy schedules. It was great to know that KPTCL
is the only company that provides transmission and distribution services to
the peoples of the Karnataka State.
       I really enjoyed my project in this esteemed Government Undertaking
Company and it really helped me to improve my knowledge and to learn
practical aspect.