WELCOME

PROJECT APPROVAL PROCESS

By Jai Wardhan Kumar Senior Engineer Project (Control & Instrumentation) VSTPP, Singrauli, MP Email-jaiwardhankumar@ntpc.co.in Mobile-9425823405, Intercom-1297,3730 More Interaction-jaiwardhankumar@hotmail.com (orkut/facebook/twitter/linkedin

PROJECT FORMULATION AND APPROVAL

Need for New Capacities Site Selection Preparation of Feasibility Report Thermal Projects Tie-ups / Clearances Hydro Projects Tie-ups / Clearances Investment Approval Exercise

Need for New Capacities

ALL INDIA POWER SUPPLY POSITION - PEAK

Period Peak demand (MW)
81555 81492

Peak Met (MW)

71262 71547

Peak deficit / surplus (MW)

-10293 -9945

Peak deficit / surplus (%)

-12.6 -12.2

9th Plan end 2002-03

2003-04
2004-05 2005-06 2006-07 2007-08

84574
87906 93255 100715 108866

75066
77652 81792 86818 90793

-9508
-10254 -11463 -13897 -18073

-11.2
-11.7 -12.3 -13.8 -16.6

PEAK DEMAND /PEAK MET NR (In MW)

State
Peak Demand 275 4075 4956 1061 1950 8672 6374 11104 1200 32462

Chandigarh Delhi Haryana HP J&K Punjab Rajasthan UP Uttarakhand Northern Region

April-March 2008 Peak Met Surplus/Deficit (-) (MW) (%) 275 0 0 4030 -45 -1.1 4821 -135 -2.7 1010 -51 -4.8 1444 -506 -25.9 7340 --1332 -15.4 5559 -815 -12.8 8568 -2536 -22.8 1150 -50 -4.2 29495 -2967 -9.1

PEAK DEMAND/PEAK MET

WR
State Peak Demand Chhattisgarh Gujarat 2421 12119

(In MW)
April-March 2008 Peak Met Surplus/Deficit (-) (MW) (%) 2188 8885 -233 -3234 -9.6 -26.7

MP
Maharashtra Goa Western Region

7200
18441 457 38277

6436
13575 408 29385

-764
-4866 -49 -8892

-10.6
-26.4 -10.7 -23.2

PEAK DEMAND/PEAK MET

SR
State Peak Demand AP Karnataka 10091 6583

(In MW)
April-March 2008 Peak Met Surplus/Deficit (-) (MW) (%) 9162 5567 -929 -1016 -9.2 -15.4

Kerala
Tamil Nadu

2918
10334

2742
8690

-176
-1644

-6.0
-15.9

Pondichery
Southern Region

276
26777

276
24368

0
-2409

0.0
-9.0

ER
State

PEAK DEMAND/PEAK MET (In MW)

April-March 2008 Peak Peak Met Demand Surplus/Deficit (-) (MW) (%) -604 -49 -123 -41 -525 -3 -1241 -32.7 -2.6 -14.2 -1.4 -9.8 -4.3 -10.4

Bihar DVC Jharkhand Orissa West Bengal+ Sikkim Eastern Region

1847 1852 865 2980 5379 69 11940

1243 1803 742 2939 4854 66 10699

PEAK DEMAND/PEAK MET

NER
State Peak Demand Arunachal Pradesh Assam Manipur Meghalay a Mizoram Nagaland Tripura 101 848 119 455 97 91 171

(In MW)
April-March 2008 Peak Met Surplus/Deficit (-) (MW) (%) 75 766 97 279 58 88 141 -26 -82 -22 --176 -39 -3 -30 -25.7 -9.7 -18.5 --38.7 -40.2 -3.3 --17.5

NERegion
ALL India

1742
108866

1347
90793

-395
-18073

--22.7
--16.6

ALL INDIA POWER SUPPLY POSITION - ENERGY

Period Energy Energy Requirement Availability (MU) (MU)
522537 483350

Energy deficit / surplus (MU)

-39187

Energy deficit / surplus (%)

-7.5

9th Plan end

2002-03
2003-04 2004-05 2005-06 2006-07 2007-08

545983
559264 591373 631757 690587 737052

497890
519398 548115 578819 624495 664660

-48093
-39866 -43258 -52938 -66092 -72392

-8.8
-7.1 -7.3 -8.4 -9.6 -9.8

ACTUAL POWER SUPPLY POSITION NR (In MU)

State April-March 2008 Requirement Availability Surplus/Deficit (-) (MU) (%) 1439 22374 29149 5946 11602 42120 36196 61740 7023 217589 1439 22236 25512 5771 8327 38541 35344 50945 6794 194909 0 -138 -3637 -175 -3275 -3579 -852 -10795 -229 -22680 0 -0.6 -12.5 -2.9 -28.2 -8.5 -2.4 -17.5 -3.3 -10.4

Chandigarh Delhi Haryana HP J&K Punjab Rajasthan UP Uttarakand l Northern Region

ACTUAL POWER SUPPLY POSITION WR (In MU)

State April-March 08 Requiremen Availability Surplus/Deficit t (-) (MU) (%) 14083 13413 -670 -4.8 68715 41524 114934 2738 247156 57581 35663 93895 2706 208209 -11134 -5861 -21039 -32 -38947 -16.2 -14.1 -18.3 -1.2 -15.8

Chhattisgarh Gujarat MP Maharashtra Goa Western Region

ACTUAL POWER SUPPLY POSITION SR (In MU)

State April-March 2008 Requirement Availability Surplus/Deficit (-) (MU) (%) 64145 40371 15656 65724 1840 187736 61517 39282 15276 63898 1840 181813 -2628 -1089 -380 -1826 0 -5923 -4.1 -2.7 --2.4 -2.8 0.0 -3.2

AP Karnataka Kerala Tamil Nadu Pondicher y Southern Region

ACTUAL POWER SUPPLY POSITION ER (In MU)

State April-March 2008

Requirement Availability
Bihar DVC Jharkhand Orissa West Bengal + Sikkim Eastern Region 9242 13373 5048 18833 28979 297 75772 7930 13033 4416 18489 27865 283 72016

Surplus/Deficit (-) (MU) (%)

-1312 -340 -632 --344 -1114 -50 -3756 -14.2 -2.5 -12.5 -1.8 -3.8 -4.7 -5.0

ACTUAL POWER SUPPLY POSITION NER (In MU)

State April-March 2008 Requirement Availability Surplus/Deficit (-) (MU) (%) 391 4816 530 1620 288 377 777 8799 737052 302 4412 501 1232 246 334 686 7713 664660 -89 -404 -29 -388 -42 -43 -91 -1086 -72392 -22.8 -8.4 -5.5 -24.0 -14.6 -11.4 -11.7 -12.3 -9.8

Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Tripura NERegion ALL India

High potential for Growth

Per-Capita Energy Consumption in Kwh2003 664.8 Kwh in
India Brazil Russia China UK Australia USA World Average -1800 200

594 2246

2006-07

India targets to have per capita availability of 1000 KWh by 2012

6303 1440 6755 11446 14057 2490

2200 4200 6200 8200 10200 12200 14200

Source-UNDP Human Dev. Indicators 2006

Large Capacity addition is required to meet the demand

778 GW

425 GW 220 GW 132 GW

Mar-07

2012

2022

2032

Demand considering 8% GDP growth

Source: Integrated Energy Policy GOI

Site Selection

Siting Criteria of Thermal Power Plant

a) b) c) d) e) f) g) h)
Broad factors influencing selection of project site(s) Availability of suitable and adequate land Reliable Source of Water Type and Source of fuel Distance from Source of fuel Port, rail and road access Availability of infrastructure facilities Siting Criteria of MOEF Environmental aspects

Siting Criteria of Thermal Power Plant

Should be avoided within 25 kms of the outer peripheries of
Metropolitan cities National Park and Wildlife sanctuaries Ecologically sensitive areas like tropical forests, biosphere reserves, National Parks & Sanctuaries, important lakes and coastal areas rich in coral formations. 500 m of HTL, a buffer zone of 500 mts should be kept free

Siting Criteria of Thermal Power Plant

Chimney should not fall within the approach funnel of the runway. 500 mts. Away from National Highway, Railway and Flood Plains of the Riverine Systems 10 kms away from archaeological, historical, cultural, religious or tourist importance and defence installations No forest or prime agricultural land should be utilized for setting up of TPS, or for ash disposal. Should not be on coal bearing area.

Indicative Requirement of Basic Inputs for Coal based Projects

Capacity Range LAND (acres) Main Plant Ash Disposal Township WATER Makeup water (cusecs) Sweetwater for coastal Projects (cusecs) FUEL (Milion Tonne/Annum) Indigenous raw coal 1000 MW 2000 MW

650 500 150

40 6

800 1000 250

80 12

5.5

11

Indicative Requirement of Basic Inputs for Gas Projects

Capacity range LAND (acres) Main Plant Township
WATER Cooling water (Cusecs) FUEL (MCMD)
650 MW 200 75 1300 MW 300 80

18

35

2.9 (33 Tri.BTU)

5.8 (66 Tri. BTU)

Preparation of Feasibility Report

PREPARATION OF FEASIBILITY REPORT

Topographical Survey Soil Investigation Environmental Impact Assessment (EIA) Study Make-up Water Study Seismic Study Area Drainage Study Geological Mapping Study Coal Transportation / Railway Siding Study Socio-Economic Study Feasibility Report

Site Specific Studies/Investigations required for a New Project Site

Preliminary Topographical Survey Broad scope of services includes Development of contours Land use plan Ownership details Preliminary Geo-technical Investigation Field as well as laboratory investigation, analysis and interpretation of data collected and preparation of a Geo-technical report.

Site Specific Studies/Investigations

Environmental Impact Assessment (EIA ) Study Broad scope includes: Field studies Impact assessment Preparation of the EIA document covering Land Use, Water Use, Soils, Geology, Hydrology, Sediments, Water Quality, Meteorology, Air Quality, Terrestrial Ecology, Aquatic Ecology, Noise, Risk Assessment, Ash Utilization and Occupational Health and Safety. Services (based on 12 months data). EIA report covers the existing environmental baseline conditions, impacts due to operation of the power plant, Environmental Management Plan, post studymonitoring programme, Occupation Safety & Health and Risk Assessment.

Site Specific Studies/Investigations

Seismic Study Broad Scope includes Geological and seismotechtonic set-up of the site covering an area of not less than 150Km radius around the project site. Determination and presentation of design earthquake parameters Area Drainage Study Review and analysis of rainfall information to arrive at design storm scenarios Preparation of digital elevation model for the study area Estimation of flood hydrographs considering historical as well as design rainfall for different return periods.

Site Specific Studies/Investigations

Socio-economic Study
Broad scope includes : Assessing the number of Project Affected Persons (PAPs), overall impact due to land acquisition and establishment of the project on the affected villages and its populace in general and the PAPs , whose livelihood is affected (directly or indirectly) in particular. To establish base line condition, assess the socialeconomic impacts and to what extent, analyse the impoverishment risk to find out the most vulnerable section of the society and to suggest the initiatives to address these issues. To establish social inventory of affected villages covering the social, cultural, economic, historical, political and environmental aspects. To identify indicators for monitoring the standards of living of PAPs in future.

Site Specific Studies/Investigations

Railway Siding Study To examine the feasibility of alternative allignments Identification of serving station on Indian Railways and the requirement of traffic facilities at these stations with reference to facilities already existing. Survey of the selected alignment Assessment of land requirement Hydrological Study Specific information about the river water levels, bed profile (river across-section), velocity of water (magnitude and direction) silt load and gradation etc. during various periods of the year To locate and design rationally, intake-well and other associated structures required for the drawal of water.

CONTENTS OF FR
Need and Justification of the Scheme. Preliminary Analysis of Alternatives Linkage/Availability of Various Inputs Availability of Various Clearances. Energy Absorption Plan Energy Evacuation Plan Financial and Executing Capabilities Plant Technical Features incl. Bill of Quantities Environmental Aspects Project Execution and Mgt. incl Implementation Schedule Cost Estimates Financial Package Tariff Calculations. Establishment Project Viability

Thermal Projects Tie ups / Clearances

INPUTS / LINKAGES TO BE TIED UP

Input
Land Availability Water Availability Coal Linkage Gas/Liquid Fuel Availability Fuel Transportation

Agency
State Government State Irrigation Deptt. CWC / MOWR Dept. of Coal (SLC) Ministry of Petroleum & Natural Gas Railways / GAIL/Oil Companies

CLEARANCES REQUIRED
Clearance
Clearance for Chimney height Defence Clearance Public Hearing

Agency
Airports Authority of India Ministry of Defence SPCB

Environment Clearance Forest Clearance

MOEF State Forest Department / MOEF

Concerned State Govts

R&R of displaced family

OTHER REQUIREMENTS
Item
Power Evacuation Power Purchase Agreement Financing ICB Clearance Mega Certificate, wherever applicable

Agency
Powergrid/CEA Beneficiaries MOP/DEA MOP MOP

MEGA POWER PROJECTS: REVISED POLICY GUIDELINES

The following conditions are required to be fulfilled by the developer for grant of mega project status:-

a) an inter-state thermal power plant of a capacity of 700 MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura; or
b) an inter-state thermal power plant of a capacity of 1000 MW or more, located in States other than those specified in clause (a) above; or c) an inter-state hydel power plant of a capacity of 350 MW or more, located in the States of Jammu and Kashmir, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura; or d) an inter-state hydel power plant of a capacity of 500 MW or more, located in States other than those specified in clause (c) above

MEGA POWER PROJECTS: REVISED POLICY GUIDELINES

Pre-conditions for availing the benefits:

Goods required for setting up of any mega power project, qualify for the above fiscal benefits after it is certified by an officer not below the rank of a Joint Secretary to the Govt. of India in the Ministry of Power that (i)the power purchasing States have constituted the Regulatory Commissions with full powers to fix tariffs;

(ii)the power purchasing States undertakes, in principle, to privatize distribution in all cities, in that State, each of which has a population of more than one million, within a period to be fixed by the Ministry of Power.

MEGA POWER PROJECTS: REVISED POLICY GUIDELINES

Fiscal concessions/benefits available : Zero Customs Duty : In terms of the notification of the
Government of India in the Ministry of Finance (Department of Revenue) No.21/2002-Customs dated 1st March, 2002 read together with No.49/2006-Customs dated 26th May, 2006, the import of capital equipment would be free of customs duty for these projects. Deemed Export Benefits: Under Chapter 8(f) of the Foreign Trade Policy, Deemed Export Benefits is available to domestic bidders for projects both under public and private sector on following the stipulations prescribed therein.
Price preference to domestic PSUs bidders: In order to ensure that domestic bidders are not adversely affected, price preference of 15% would be given for the projects under public sector. The domestic bidders would be allowed to quote in US Dollars or any other foreign currency of their choice.

Hydro Projects Tieups / Clearances

Site Selection for Hydro Projects

Broad factors influencing site selection
a) b) c) d) Installed capacity and dependable energy Project cost and cost of energy Accessibility and existing infrastructure Type of development i.e. storage or Run of River (ROR) e) Type of structures i.e. dam height, length of water conductor, type of power house etc. f) Environmental considerations and R&R

STUDIES FOR HYDRO POWER PROJECTS

Topographical Study Geological & Geotech Study Hydrological Study Meteorological Study Seismic Study Socio-Economic Study EIA Study Construction Material Survey Transportation Study Disaster Management Studies

CLEARANCES REQUIRED FOR HYDRO PROJECT

Land confirmation from State Government Water clearance from State Government Clearance from MOWR & CWC regarding water availability from Inter-State / International Treaty angle. Defence clearance, if applicable

CLEARANCES REQUIRED FOR HYDRO PROJECT

Clearance from Ministry of Social Justice and Tribal Affairs, if tribal population is involved. Environment Clearance from Ministry of Environment & Forests Forest Clearance from MOE&F TEC from CEA
For Projects costing more than Rs 500Crs (Allotted through MOU route) For Projects costing more than Rs 2500 Crs (Allotted through competitive bidding route)

CEAs TECHNO-ECONOMIC CLEARANCE

Appraisal is based on
Technical Feasibility Comprehensiveness Tie-up of Inputs Availability of Clearances Consent from GSI on Geological aspect Consent from CWC on Hydrology Cost Estimates Comparison with other Similar Projects (Least Cost Solution) Power Evacuation Arrangement

Investment Approval

Investment Approval prior to accordance of Navratna Powers

Pre-PIB (Inter-Ministerial) headed by JS&FA, MOP PIB (Inter-Ministerial) headed by Secretary (Expenditure), MOF CCEA Investment Approval Simhadri & Faridabad were the projects approved through this route last

Enhanced Delegations of Powers to Navratnas (From July, 1997; revised w.e.f 5.8.05) Identified Navratna PSEs incl. NTPC have been delegated powers including to
Incur capital expenditure on purchase of new items or for replacement without any monetary ceiling. Establish Financial JVs and wholly owned subsidiary in India or abroad with the stipulation that the ceiling of equity investment of the PSE shall be 15%(5% earlier) of the net worth of the PSE limited to Rs1000crs (Rs.200 Crs. earlier) in any one project and 30%(15% earlier) of the net worth of the PSE in all JVs Wavier of Ceiling of Rs 1000Crs for participating in bidding of Ultra Mega Projects (s.t implementation of 2 projects) (Special approval conveyed on 14.11.2006)

Enhanced Delegations of Powers to Navratnas (From July, 1997; revised w.e.f 5.8.05)

Powers for (5.8.05) s.t

mergers

and

acquisitions

(i) it should be as per the growth plan and in the core area of functioning of the PSE, (ii) Conditions / limits would be as in the case of establishing joint ventures/subsidiaries, and (iii) the CCEA would be kept informed in case of investments abroad.
Powers to be exercised in such a manner that it should not lead to any change in the public sector character of the concerned PSEs (28.5.07)

CONDITIONS APPLICABLE FOR NAVRATNA POWERS

Restructuring of the Board Establishment of Audit Committee with membership of non-official directors Proposals must be with an analysis of relevant factors and quantification of the anticipated results and benefits. Proposals should be prepared by or with the assistance of professionals and experts and should be appraised, in suitable cases, by financial organisations with expertise in the areas. The appraisal should also preferably be by institutions funding through loans or equity participation.

CONDITIONS APPLICABLE FOR NAVRATNA POWERS CONTD.

Government Directors, Finance Director and the concerned Functional Director (s) must be present when major decisions are taken Decisions should preferably be unanimous. Otherwise a majority decision may be taken but at least two-thirds of the Directors should be present. PSE not to depend upon budgetary support (or Government guarantees earlier). Wherever Govt. guarantee is required by external donor agencies, such guarantee shall not affect Navratna status( 5.8.05) Budgetary support to implement Govt. sponsored projects of national interest and R&D projects will not disqualify Navratna status; Such projects to be approved by Govt. (28.5.07)

REVISED SYSTEM UNDER NAVRATNA POWERS

Preparation of FRs/ DPRs incl. Studies & Investigation for New / Expansion Projects
Monetary Limit Scope Rs 500 lakh for a project Expenditure towards Topographical Survey, Socio-economic Survey, Geo-technical Investigations, Detailed Environment Impact Assessment Studies, Hydrological Studies, Area Drainage Study, Seismic Study, Oceanographic Study, Model Studies, Preparation of FR/DPR and payment of fees/charges for statutory clearances etc. for New / Expansion of Projects etc.

Approving CMD Authority

REVISED SYSTEM UNDER NAVRATNA POWERS

FR/DPR
On current as well as estimated completion cost basis.

FR/DPR to be approved by the Project Sub-Committee of the Board comprising Chairman & Managing Director, Director (Finance), Director (Projects), Director (Operations), Director (Technical), Director (Commercial), Joint Secretary (Thermal) and One (1) Non-Official/Parttime Director as Members. The Chairman & Managing Director shall be the Chairman of the Project SubCommittee. The quorum for the Sub-Committee shall be four (4) Members including one (1) Part-time Director.

REVISED SYSTEM UNDER NAVRATNA POWERS

Advance Expenditure for Projects for which FR/DPR is approved by Project Sub-Committee
Monetary Rs 15 Crs for a project Limit Scope Activities related to development of infrastructure (such as construction power, construction water, construction stores, construction office, approach road, site protection etc.), processing and service charges (advance payments) for land acquisition, Site establishment etc., including advance action for NIT for site development/infrastructure activities, even in cases where cost estimate is more than Rs.15 crore.

REVISED SYSTEM UNDER NAVRATNA POWERS

Advance Expenditure for Projects for which FR/DPR is approved by Project Sub-Committee
Prerequisites

FR/DPR submitted to CEA, wherever applicable FR/DPR approved by Project SubCommittee of the Board. Project identified in the Annual Plan.

Approving Authority CMD

REVISED SYSTEM UNDER NAVRATNA POWERS

Advance Expenditure for Projects which have received TEC of CEA, wherever applicable / appraisal by independent agency has been done incase of other projects Monetary Rs 50 Crs (uncl. Earlier expenditure) for a Limit project Scope Infrastructural development (Approach Road, Site Protection, Fencing/Boundary Wall, Drainage, Construction Water / Power / Stores / Office, Construction township and other enabling works etc.) including on land acquisition of priority land, site levelling, initial expenditure on R&R, Green Belt, Site establishment etc.

REVISED SYSTEM UNDER NAVRATNA POWERS

Advance Expenditure for Projects which have received TEC of CEA, wherever applicable / appraisal by independent agency has been done incase of other projects Pre FR/DPR approved by Project Subrequisites Committee of the Board.

Techno-Economic Clearance from CEA, wherever applicable. For other projects, Appraisal by independent agency. Necessary Budgetary Provision

Approving Authority CMD

REVISED SYSTEM UNDER NAVRATNA POWERS

Approval for issue of NIT

CMD shall approve issue of NIT for various packages including Main Plant Package in case of New/Expansion Projects before Boards investment approval after FR/DPR is approved by Project Sub-Committee of the Board subject to following and relevant Govt. guidelines : i) FR approved by Project Sub-Committee of the Board.

ii) CEAs TE Clearance for the project is available, wherever applicable / Appraised by independent agency in case of other Projects

REVISED SYSTEM UNDER NAVRATNA POWERS

Investment Approval Monetary Limit : No limit Scope New / Expansion Projects Views of Project Sub-Committee after Prerequisites considering various aspects of the proposal
taking into account following pre-requisites of the Proposal.

Availability of Inputs
Land availability confirmation. Water linkage from State Irrigation Dept. and Concurrence of CWC/MOWR, if it is inter-State jurisdiction. Fuel linkage, wherever applicable Signing of Fuel Supply Agreement, wherever applicable

REVISED SYSTEM UNDER NAVRATNA POWERS

Investment Approval (..contd)

Availability of Clearances SPCB clearance. MOEF clearance Forest clearance, if necessary Civil Aviation Clearance, wherever applicable Defence/Archaeological clearance, if necessary. CEAs Techno-Economic Clearance, wherever applicable

REVISED SYSTEM UNDER NAVRATNA POWERS

Investment Approval (..contd) Others PPA should have been signed Satisfactory Financing Plan Fuel Transportation clearance particularly where long distance transportation involved, wherever applicable Associated Transmission System (ATS) CEAs Techno-Economic Clearance, where necessary Satisfactory Financial Appraisal of the project No net budgetary support from GOI for the Project Approving Authority : Board

Projects approved through Navratna Powers

Under Navratna Powers NTPC Board has approved approval for 20 projects with estimated cost of about Rs 86000 Crs
Project Talcher-II Ramagundam-III Capacity in MW 2000 500

Rihand-II Vindhyachal-III Unchahar-III Kahalgaon-II Phase-I Kahalgaon-II Phase-II Sipat-I Sipat-II

1000 1000 210 1000 500 1980 1000

Projects approved through Navratna Powers

Project
Barh

Capacity in MW
1980

Korba-III
Farakka-III NCTPP-II Simhadri-II Mauda

500
500 980 1000 1000

Bongaigaon
Barh-II Koldam Loharinag Pala

750
1320 800 600

Tapovan Vishnugad

520

Further investment in 4 JV Projects of 4000 MW capacity approved (excl. investment in RGPPL)

SNAPSHOT OF XI PLAN PROJECTS

Category
Commissioned On-Going Projects Projects for which Main Plant Bids have been received/invited.

(MW)
1990 16680 3760

TOTAL Back up projects:Rihand-III-U2(500

22430
2500

MW), Vindhyachal-IV (2x500 MW), Vallur-II (1x500 MW) & Muzaffarpur Exp. (2x250 MW) Critical units for comm. in XI Plan: 2820 MW- North Karanpura-U1, Barh-II-U2, Mauda -U2, Rihand-III- U2 and Vindhyachal-IV- U2 Capacity at the end of XI Plan- 49834 MW - Coal 39879 MW, Gas-8035 MW and Hydro 1920 MW

Project

ON GOING PROJECTS
Capacity (MW) 1500

Balance Capacity In XI Plan (MW) 500

Kahalgaon-II

Sipat-II Sipat-I Barh Korba-III Bhilai Exp.- JV NCTPP-II Farakka-III Simhadri-II Aravali STPP-JV Vallur-I -JV

1000 1980 1980 500 500 980 500 1000 1500 1000

500 1980 1980 500 250 980 500 1000 1500 1000

ON GOING PROJECTS
Project Capacity (MW) Balance Capacity In XI Plan (MW)

Nabinagar-JV Bongaigaon Mauda* Barh-II** Koldam HEPP LohariNag Pala Tapovan Vishnugad TOTAL * LOI issues, LOA yet to be placed.
**

1000 750 1000 1320 800 600 520

1000 750 1000 1320 800 600 520

16680

LOA for SG issued. LOA for TG expected by July08.

PROJECTS FOR WHICH MAIN PLANT BIDS HAVE BEEN RECEIVED/INVITED Project Capacity (MW) 1980 1000 1300 1300 Capacity In XI Plan (MW) 660 500 1300 1300 3760

North Karanpura Rihand-III Kawas-II J. Gandhar-II TOTAL

BACK UP CAPACITY FOR XI PLAN Project Capacity (MW) 1000 1000 500 Capacity In XI Plan (MW) 500 1000 500

Rihand-III-U2 Vindhyachal-IV Vallur-Sg-I PhII Muzaffarpur Exp. TOTAL

500

500
2500

Exercise

Q WHAT ARE DIFFERENCES IN TIE-UP & CLEARANCE OF THERMAL & HYDRO PROJECT

SOLUTION
S.N. THERMAL
1. 2. Coal/gas/liquid fuel Chimney

HYDRO
No such issue No such issue

3.
4. 5. 6.

No such issue
No such issue No such issue No such issue

Storage or run of river

Dam height, type of power house Metrological Hydrological

DISCUSSIONS

Jai Wardhan Kumar Senior Engineer Project (Control & Instrumentation) VSTPP, Singrauli, MP Email-jaiwardhankumar@ntpc.co.in Mobile-9425823405, Intercom-1297,3730 More Interaction-jaiwardhankumar@hotmail.com (orkut/facebook/twitter/linkedin)

WEBSITE
http://sites.google.com/site/investntaxcare http://www.wrldc.com/ http://www.cercind.org/ http://www.indianelectricity.com/ http://cea.nic.in http://www.ntpc.co.in http://www.pfcindia.com

THANKING YOU

Mega Benefits- Typical 1000 MW TPP

S. Description No.
1 2 3 Civil Works Equipment Contingency Taxes & Duties Customs duty Excise Duty CST IDC, Proj. Mgt.
Total Project Cost

Rs in Crs.

Cost Mega
770 3200 98 78
1 77 846 4992

Cost Non-mega
770 3200 110 503 133 # 302 # 68 926
5509

# Considering 30% Imported component of BTG

Purchase Preference
Since 1971 Price Preference not exceeding 10% was admissible to products and services produced by a CPSE and being offered to other CPSEs. Consequent to economic liberalization, this was reviewed in 1991. Purchase Preference Policy was introduced in January, 1992 replacing the Price Preference Policy with validity for 3 years. Under this if the price quoted by a CPSE was within 10% of the lowest valid bid price (L-1) in a tender, other things being equal, preference to be accorded to CPSE at L-1 price. This is to enable CPSEs to adjust to new environment of competition in the wake of Globalization (falling tariff/custom duties) and liberalized industrial policy (pruning the list of industries reserved exclusively for public sector)

Purchase Preference Subsequently extended several times; presently valid till 31.3.2008. it was stipulated that it will be terminated w.e.f 31.3.2008. (18.7.05) Presently it is valid for contracts of the value of Rs 5 Crs and above but not exceeding Rs 100 Crs. A minimum value addition of 20% by the CPSE would be a pre-requisite. MOP is granted exemption from PPP, s.t condition that they will place certain orders upon BHEL on a negotiated basis price benchmarked through competitvely bid projects every year.

Price Preference
World Bank/ADB Guidelines ICB to be followed Evaluation of tenders to be done with out duties (customs duty & excise duty) Price Preference of 15% to domestic bidders allowed with the stipulation that value addition is more than 20%. Price Preference is to offset domestic duty/levies such as sales tax, octroi, etc and certain disadvantages due to inadequate infrastructure and higher cost of finance Mega Policy understood to have borrowed bidding provisions of World Bank funded Projects In the Evaluation, 15% of CIF price difference is loaded to the foreign bidder.

NTPCs XII PLAN CAPACITY ADDITION TARGET (MW)

Cumulative capacity targeted by end 12th Plan NTPCs capacity as of March07 (end of 10th Plan (29394 MW as of now) Capacity addition target in 11th Plan (incl. 2600 MW Gas. & excl. 2500 MW Back up projects identified. Cumulative capacity by end 11th plan (49734 if back up considered in place of Gas) Capacity addition required in 12th Plan Capacity identified for 12th Plan Capacity to be firmed up for 12th Plan 75000

27404
22430

49834

25166 15011 ~10000

CAPACITY IDENTIFIED FOR XII PLAN

Sl.No PROJECT CAPACITY (MW) IN XII Plan REMARKS

Firmed up Projects 1. North Karanpura 2. Tanda-II 3. Meja 4. New Nabinagar 5. Solapur 6. Lata Tapovan 7. Rammam-III 8. Rupsiyabagar Khasiyabara 9 Darlipali 10 Lalitpur II Other projects 11. Gadarwara 12. RGCCPP-II 13. Lara 14. Markanam 15. Etalin & Attunil 16. Nuclear Power Project 17. Non-Conventional

1320 1320 1320 1980 1320 171 120 260 3200 4000

Capacity firmed up 15011 MW

1980 1950 4000 4000 4500 2000

1000

Balance capacity identified 19430 MW. Out of this 10000 MW to be firmed up for 12th