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Strategic Management-Tata Power Company Ltd(TPCL)and Jindal Power Ltd(JPL)Group 4
1
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Power Sector Value Chain
Generation NTPC Tata Power
Reliance Adani Jindal Power
Transmission PGCIL
Distribution S ! ! ST
NDPL
"# LandAc$uisition
%# Go&tclearances
'# (uel tie u)*# PPA+# ,i-h Ca)ital
"# LandAc$uisition
%# Go&tclearances
'# Ca)ital
"# Ad&erse Go&t
Policies%# Ca)ital'# Losses*# Pil.era-e+# CR/
Challen-es
/a0orPla1ers
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Indian power sector [1/3]Continuous energy shortages : May continue given the low percapita consumption of electricity in India
India su ers from an energy de cit(000 GWhr)9.6% 9.9% 11.1% 10.1% 8. % 8. % 8.!%
"ner#$ de and "ner#$ &'pp $ % e*icit
Capacity addition better than expected in recent years
Low per capita consumption of electricity (+Wh),anada 16- 06
& 13- ! 'stra ia 10- 1
2apan !-8 !rance !-318
Ger an$ !-0834'ssia 6- 33
+ - 18,hina 3-31
Wor d -9335ra i - 1India 91!
&o'rce7 I" - +e$ Wor d &tatistics 011 (4oW)- ," (India- 01 13)
90-000 96. % 3.8%
!0-000
0-000
30- 38
!. % 1. % 88.1%
6 -3!-96
0- 1-110
1 0.0% ar#et ,enter : &tate chie;ed ,entre : &tate
100.0%(In GW)
80.0%
60.0%
0.0% 0
ar#et 11 >1 >13 1 th i;e chie;e ents>ear < an *ro pr?1 ti( >1 1!) @o;?13 d'rin#
1 th p an
% chie;ed =W as % o* ar#et Capacity addition for 1 th !ive "ear #lan on target&o'rce7 ,"
$
Ca)acit1 addition b1 )ri&ate )la1ers hasincreased 2 ma0or contributor in achie&in-
the tar et in "" th lan
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1. &che e to restr'ct're short teriaAi ities o* ar#e oss aBin# &"5?s.
5anBs wi resched' e the repa$ ent o*0% o* the short ter oans A$ #i;in# aoratori' o* three $ears. or the
Aa ance 0% o* the eCpos're- the &"5swi iss'eAonds #'aranteed A$ the respecti;e state#o;ern ent
. &"5s are reD'ired to wipe o't their de*icitwithin the neCt 3 $ears
3. Iss'e o* =ode &tate " ectricit$istriA'tion =ana#e ent A$ the nion
Go;ern ent. 4esponsiAi it$ o* *inancia :operationa t'rnaro'nd and on# ter
s'stainaAi it$ o* p'A ic distriA'tionco panies to Ae on state #o;ern ents
. &tate #o;ern ents a owed their &"5s toapp $ to state re#' ators *or tari** hiBes.&ince 011- state re#' ators ha;e Grad'ared'ction in : osses7 o;er the ast 10$ears a;era#e : osses ha;e red'ced*ro 3 % to %.
%
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Indian ,istorical T2D loss56 o.out)ut7
"3"43"+
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vement in nancial and operational performance of &'(s )1* through distribution reforms
+,- ). of o/p*losses by country ) 01 *
&o'rce7 ," - Internationa "ner#$ ssociation@otes7(1) &"5s7 &tate " ectricit$ 5oards- : 7 rans ission and istriA'tion( ) ata *or India is *or > 01 whi e *or other co'ntries is as o* ec 011
(inancial )er.ormance o. S !s are a ma0orthreat to )ower -eneratin- com)anies
re&enue sellin- )ower to S !s
Indian power sector [ /3]
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a currently has and is pro ected to have a de cit in coal with the shortfall being met by imported coal
1/12/1% 1/12/1%1/12/1%
1/12/1%1/12/1%
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E In India- coa Aased power p ants acco'nt *or 9% (1) o* the insta ed
#eneration capacit$.
E ear < an ( 01 01!)@otes7 (1) as o* ece Aer 013 ( ) *or the $ear 010 11
Coal im)ort is increasin- but due to a))reciation o. dollar and )olic1 chan-ein Indonesia Power )roducers ad&ersel1 e8ected 5Coal Prices increase7
Indian power sector [3/3]
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5rie* ;er;iew o*
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(inancial 5"3%7
=%===*===E===
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(inancial 5%3%7
==#+
""#+
%%#+
''#+
*
=#*%=#*+=#+'
=#++=#* =#*4
=#+ =#+4=#E+=# +
TPCL JPL
D3 Ratio
Industr1a&era-e is
"#%=
"# Tata Power mar et share in )ower
business is H
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Transmissio
n
E It has 8 +=s o* tra sissionine *ro its p ant to the
nearest
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Model Capacity . of overall)M4* capacity 5eturns 6pside +ata #ower #ro ects 7 8ta9e counterparty
Regulated returns 3,425 40%
Regulated tariff mechanism 465
5%
(renewables)
iCed ret'rn on eD'it$
iCed tari** N
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Tata Power is aimin- .or %E=== /> b1 %=%=
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E Post %==* to %="' com)an1e ecuted se&eral )ro0ectswithin time and bud-et#
E The1 e ecuted these )ro0ectson their own#
7perational'xcellence
'xecutional
'xcellence
ttaining ;rowth
E Till %==* com)an1 o)eratedthe /umbai )lant .or morethan += 1ears#
E The1 carried out its ram) u)on their own to sustain the)er.ormance as well asachie&e !enchmar)er.ormance#
E Gi&en the o)erational 2e ecutional e cellencecom)an1 is )lannin- toe )edite its -rowth strate-1#
E &en loo in- o&erseaso))ortunit1
E Securin- .uel su))l1 5+= /Tcoal )er annum7
E
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TPCLF Attainin- Growth
G r o w t h
/er-er 2
Ac$uisition
It ma1 be a
.uture o)tion
ProductDi&ersi:cation
5!/7
/PP
Ca)ti&e
Re-ulated3Distribution
Joint &entureand Alliances
Da-achu ,1droPower
Cor)oration Ltd#
PGCIL5transmission7@
DVC5-eneration7
Cenner-i Pt1#Ltd#
Global59&erseas7e )ansion
!hutan@ [email protected]
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Renewable ner-1 ? TPCL Vs JPL
E ,1dro Pro0ect? J E/> Pilot )ro0ect onBur et ri&er in Rai-arh
J Plan to le&era-e thise )erience to bid .or
u)comin- ,1dro)ro0ects in Ne)al@,imachal Pradesh andArunachal Pradesh#
E Renewable ner-1? J Plan to set u) +== />
Solar )lant in Ra0asthan J %% /> wind )ower
)ro0ect in /aharashtra#
E ,1dro Pro0ect? J Three )ro0ects o. **/> in /aharastra
J Renewable ner-1? J %4 /> Solar )lants J '4< /> wind )ower
)ro0ect across di8erentstates
"'6 o. TPCL )ower)ort.olio is .rom
renewablecate-or1 and in.uture tar-etin-=6 to %+6 .rom
this cate-or1
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Than ouK
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