POWER TODAY looks at some of the PSUs involved in pushing India´s developmental agenda.
Public utilities have played a significant role in India´s growth story. Be it garnering wealth for the nation, ensuring planned development, contributing to public exchequer, working towards sustainability and social empowerment or initialising corporate governance, they have always been in the forefront. Here, we look at the power sector PSUs and their contribution to the country.
Some of the power sector highlights / achievements are:
Mobile apps for greater transparency and accountability:
Generation: Thermal Taking Strides
Transmission: One Nation, One Grid, One price
Distribution: UDAY - Powering Reforms
The economic reforms since 1990-91 have made PSUs emerge more competitive and stronger, both in the domestic and global markets. The recent economic slowdown in the economy also saw the PSEs fare well, which is another testimony to their resilience and inherent potential.
With the Indian economy growing rapidly, PSUs are slated to emerge even stronger with the immense strengths and potential they possess. In that context Power Today attempts to highlight the top PSUs in the power sector which have contributed to the nation on various fronts.
Disclaimer: Views expressed/statements given throughout the feature have been sourced from the power ministry and companies´ websites. Readers are requested to do their own due diligence before making any investments in the above companies.
Bharat Heavy Electrical Limited
Bharat Heavy Electricals Limited (BHEL) owned by the Government of India, is an engineering and manufacturing company based in New Delhi, India. Established in 1964, BHEL is India's largest power plant equipment manufacturer. The company has been earning profits continuously since 1971-72 and paying dividends uninterruptedly since 1976-77.
BHEL entered into power equipment sector ion 1982, to reduce its dependence on the power sector. It developed the capability to produce a variety of electrical, electronic and mechanical equipments for all sectors, including transmission, transportation, oil and gas and other allied industries.
It has been granted the prestigious Maharatna (big gem) status in 2013 by GoI for its outstanding performance. It shares the elite Maharatna status with another six behemoth PSU companies.
Awards and Recognitions
National Thermal Power Corporation
Established to accelerate power development in the country, NTPC is one of India´s largest energy conglomerate with roots tracing back to 1975. Since then it has become a dominant power major, foraying from fossil fuels into hydro, nuclear and renewable energy sources. To strengthen its core business, the corporation has diversified into the fields of consultancy, power trading, training of power professionals, rural electrification, ash utilisation and coal mining as well. It became a Maharatna company in May 2010, one of the only four companies to be awarded this status. The company´s total installed capacity is 47,178 MW (including JVs) and will be a diversified fuel mix by 2032, with non-fossil fuel based generation capacity making up nearly 28 per cent of it´s portfolio.
All time high stand alone CAPEX of Rs.25,960 crore exceeding the MoU target of Rs.23,000 crore. NTPC Group CAPEX stood at Rs.32,091 crore in FY16.
Earning Rs.70,506.80 crore as net revenue from operations and Rs.71,696.07 crore as total revenue, with net profit after tax (PAT) at Rs.10,242.91 crore in FY16.
A profit of Rs.2369.5 crore in Q1 FY17, marking an increase of 4.1 per cent over corresponding period last year.
Awards and recognitions
Rural Electrification Corporation
The Rural Electrification Corporation Limited (REC), is a listed´Navratna´ PSE under the Ministry of Power. A non-banking financial company with 'Infrastructure Finance Company' status, its main objective is to finance and promote power sector projects across India.
REC provides loan assistance to various state power utilities, private sector project developers, central power sector utilities and state governments for investments in power generation, power transmission, power distribution and other system improvement schemes/initiatives.
As March 31, 2016, REC has a loan book of over Rs.200,000 crore and net worth of Rs.28,618 crore.
The Project Offices and the sub-offices in the States coordinate the programmes of REC´s financing with the concerned State Power Utilities to facilitate formulation of schemes, sanction & disbursement of loans and monitor the implementation of schemes by the State Power Utilities. The different types of projects funded by REC are as under:
REC´s power generation schemes include setting up new power generating stations based on conventional sources of energy; R&M of existing power generating stations based on conventional sources of energy; and setting up of power generation plants based on renewable energy sources.
REC´s power transmission schemes include evacuation of power from new power generating stations and strengthening/improvement of existing transmission system in the designated areas.
Its power distribution schemes include improvement of the power sub-transmission and distribution system in the designated areas; conversion of LVDS to HVDS in rural areas; purchase of equipment for upgradation of T&D systems; intensive load development for connections to rural consumers; setting up of electrical infrastructure for energisation of agricultural pump sets.
Financially, it provides short term and medium term loans for working capital requirements like purchase of fuel for power plant, purchase of power, purchase of material and minor equipment, system and network maintenance including repair of transformers, etc.
REC also plays an important role in the implementation of several flagship schemes such as, acting as the Nodal Agency for implementation of DDUGJY, the scheme for rural electrification; the NEF, etc., among others.
REC is actively involved in the implementation of the 'Ujjwal Discom Assurance Yojana' (UDAY), and in monitoring of progress of the various reform linked parameters committed by the participating utilities.
It also provides counter-part funding for the IPDS, for improvement of the urban power infrastructure in India.
REC raises funds through various domestic and international sources, including commercial banks, capital gain tax exemption bonds, non-priority sector bonds and commercial paper, and official development assistance loan from international agencies.
Domestic debt instruments of REC are assigned the highest rating "AAA" by reputed credit rating agencies CRISIL, Fitch and ICRA. Moody´s and Fitch have rated its international credit rating at par with India´s sovereign rating.
Power Grid (PGCIL)
The Power Grid Corporation of India Limited (Power Grid), is a state-owned electric utility company headquartered in Gurgaon, India. It transmits about 50 per cent of the total power generated in India on its transmission network. Operating throughout the country, its transmission network consists of roughly 101,886 ckm and 197 EHVAC and HVDC sub-stations, which provide total transformation capacity of 168,063 M VA. Its interregional capacity is 47,450 MW.
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