budget circular 201314

7/31/2019 Budget Circular 201314

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will not be allowed to change and will form part of Outcome Budget for the year 2013-14.

These will also form the basis of MOU 2013-14 to be signed with Govt. of India.

III. Budget Heads

The Capex Budgeting is to be implemented through SAP. Budget Head (Fund) (eight digit

code) has been made mandatory field in all the Purchase Documents. Please refer tocircular no.01:FA:Budget:2012 dated 11.04.2012, copy is available on intranet

(Department LinksFinanceBudget). The Budget Head is to be furnished in all thePurchase Document under the tab Account Assignment. The Budget proposal should be

prepared and forwarded strictly in line with the Budget Heads and the same should be

clearly brought out in all the forms.

All sites are requested to use the eight digit (6 digit Budget Head and balance two digits for

reference to stage of the project) Budget Heads available on Intranet. These Budget Headsare to be part of all the budget documents to ensure budget monitoring through SAP.

Completed projects i.e. commissioned prior to 31.03.2011 need to furnish Budget Head

wise details for all the system codes. These stations need not furnish details for works not

having any outlay in RE 12-13 and beyond. However, for outlay of works covered under

Budget Head 16: Ash Handling System, subsystem Budget head-wise details will have tobe provided.

IV. Provision by Corporate Contracts:

The Budget provisions (both financial and physical) for A category contracts ( i.e.

contracts having value exceeding Rs. 50 lakhs ) including the monthly phasing in Form

Nos. C-2, D-2 and E-2 are to be submitted by the Contract coordinator/ Engineer-in-Charge

concerned of Corporate Contracts Deptt., to the projects latest by 15.06.2012 with a copy toCorporate Budget. Utmost care should be taken to ensure that the phasing of expenditure isnot back ended.

V R f S ill O d V i ti


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required to be made at the time of projecting Outlay(s) in order to realize investment plans

to the fullest extent.

VI Actual Expenditure upto March 31, 2012

Actual expenditure for the year 2011-12 and cumulative expenditure upto 31.03.2012 duly

reconciled with balance sheet should be submitted to Corporate Budget by 14.05.2012.This shall be incorporated by Site Finance in their budget proposals also. The reconciliation

of actual expenditure with balance sheet in Forms 6.1, 6.2 & 6.2 (additional) (revised formsavailable on intranet) should also be submitted by 14.05.2012 along with Actual

expenditure report for the year 2011-12 and cumulative expenditure up to March31, 2012.

Time and again it is found that the cumulative expenditure reported by the site

while sending the balance sheet reconciliation does not reconcile with the figures

indicated in the Construction Budget Proposal. HOD (F) should ensure that thereis no such discrepancy in the reported expenditure.

VII. Actual Expenditure of Q1 of RE 2012 - 13 and phasing of expenditure of RE

2012 - 13 and BE 2013 - 14

Package wise actual expenditure for the Quarter 1.4.2021 to 30.6.2012 (Q1) shall becompiled and circulated by Site finance to all concerned by 02.07.2012 for the purpose of

phasing and preparation of current estimate of RE 2012 - 13.

The budget proposal shall indicate the actual expenditure upto 30.6.2012 in the current year

and monthly anticipated provisions for the period from July 1, 2012 to March 31, 2013 for

arriving at Revised Estimate for the year 2012 13.

In order to facilitate the monitoring of the progress of expenditure, the monthly / quarterly

phasing of expenditure in respect of all schemes should be given in D and E formats tagged

with SAP Budget Heads. Any proposal without these forms shall be considered incomplete


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Talcher, Gandhar, NCTPP, Dadri Gas, Kahalgaon, Kayamkulam, Faridabad, Rihand-I & II

and Sipat II shall be as per the proforma at Annexure-III. This is in addition to theperformance budget to be submitted by these projects in the prescribed formats. The latest

anticipated cost for those projects commissioned before 31.03.2011 (last unit) should be

reconciled in such a manner that balance expenditure to be incurred beyond 31.03.2014

should be limited to BH 16: Ash Handling System only, unless there are compelling

reasons for providing such expenditure against other Budget Heads as well.

Adequate care must be taken that no new items / commitments are included in the budgetproposal except for:

i) New ash dyke & raising of ash dykeii) Payment of liabilities for remaining worksiii) Provisions for EAP schemesiv) Capital Addition (approved items)v) Ash utilization (Capital Items approved by AUD)vi) Energy Conservation (capital items approved by CEETEM)vii) Expenditure under 5 km schemeviii) Expenditure on Sustainable Development

The provision for new ash dyke, raising of existing dyke and remaining works should be

strictly as per approved/Revised Cost Estimates. No new items/works should be included

merely because provisions are available.

The provision in the budget proposal for items except (i) & (ii) should be sought only after

technical / administrative approval of the item as per DOP Section I clause 2 & 5 remark

(vi) and (xii) and Section II clause 1 remark (iv), (vii) and (ix) has been accorded. The

status of technical / administrative approval should invariably be mentioned in the remarkscolumn of the proposal wherever proposals are not approved at the time of preparation ofbudget proposals but are likely to be approved in due course. In case the approval is in

place, the copies of the approval of the competent authority should be enclosed.


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b) Contract ClosingThe status of contract closing of all such contracts where physical progress is completed

should be given along with estimated liability and whether any provision has been sought

for these packages in the Performance Budget as per format given at Annexure-IV.

c) Provision of supply of electricity in 5 km area around Central Power Plants -5 km Scheme

Ministry of Power, vide its letter no. 44/7/2010-RE dated 27th April, 2011 notified the

above scheme which covers all existing and upcoming power plants for CPSUs. The cost

of the scheme is to be borne by the CPSUs to which the plant belongs and the same will bebooked under the project cost. Accordingly, the Board of Directors in their 362

ndmeeting

held on 31.01.2011 decided that the above scheme would be implemented for all existing

stations as well as on-going projects of NTPC. Further, the Board decided that Head of

Project/Head of station will enter into agreement with NTPC Electricity Supply Co. Ltd.

(NESCL) for execution of works under the above scheme. The outlays with regard to above

scheme are to be included in RE 2012 - 13 and BE 2013 - 14.

d) New Budget heads for sustainable developmentIn line with External MOU 2012 - 13 signed between Ministry of Power and NTPC Ltd,

expenditure on sustainable development activities need to be reported separately. The

Budget for activities of capital nature will be sought under the head capital addition and

following budget heads have been allocated covering sustainable development activities:

Major Head: Capital Addition 87

Sub-System Head: Sustainable Development 02

Detailed Budget Head:1 W t t 870201


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IX. Renovation and Modernisation

Renovation and Modernisation (R&M) of operating stations has become an important

activity. Substantial outlays are required to be provided for R&M. Any shortfall in

achievement of target outlays not only has substantial impact on overall achievement of

Budget but may also affect arranging finance for these activities. Substantial shortfalls may

lead to payment of commitment charges for non-drawl of committed amount of loan.Hence, while proposing the outlays, the station maintenance schedule(s) (where ever

required) have to be kept in view and realistic provisions be sought.

X Cost Reconciliation

The exercise of cost updation for on-going projects, new ash dyke, EAP schemes, capitaladdition and R&M schemes shall be carried out in accordance with the MOP letter no. M-

12016/5/97-PAMD dated 27.04.1998 (copy enclosed as Annexure-V). It may be ensuredthat the cost estimates are updated after taking into account balance commitment which

may have to be paid to suppliers/contractors on final settlement and contract closing. Cost

Engineering Department shall intimate latest by 04.06.2012, the cost to be adopted by site.

The representatives of on-going projects must reconcile the cost estimate figures with

Cost Engineering in advance and get the latest cost estimate cleared/accepted by CostEngineering. Only such reconciled figures are to be shown in the budget proposal. A copyof reconciled cost estimate should be submitted to Corporate Budget immediately thereafter

by Cost Engineering.

It may please be noted that proposals with cost figures different from the cost estimate

furnished by Cost Engineering Department shall not be considered.

XI. New Projects: (PP&M Group, Contract Services, New Project Group &Business Development Group)

Budget Outlays & write up


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XII CERC Tariff Regulation regarding Completion of Works

CERC Terms & Conditions for Tariff period 2009-14 stipulates that capital expenditure

within the original scope of works of a project (other than Ash dyke) cannot be deferred for

execution beyond the cutoff date after the date of commercial operation. Cut Off Date for

this purpose is defined 31st

March of the year closing after two years of the year of

Commercial Operation of the Project, and in case the project is declared under commercialoperation in the last quarter of year, the cut-off date shall be 31

stMarch of the year closing

after three years of the year of Commercial Operation.

In view of above, it is very important that all orders for procurement and execution are

placed well in time for various packages within the scope of works of a project andexpenditure are incurred within the period stipulated by CERC as mentioned above. Aformat has been devised as below which will be filled up by all projects that are completed

in 11th

Plan period.

Project COD oflast unit

Cut-offdate for

incurrenceof

expenditure

LatestEst. Cost

Exp.incurred

upto31.03.11

RE2012 - 13

BE2013 - 14

Est. Exp.2013 - 14

Beyond2013 - 14

1 2 3 4 5 6 7 8 9

NOTE: Only expenditure related to Ash Dyke will be phased beyond the cutoff date.

A detail of the contracts awarded after the commercial operation date is to be furnished asformat in Annexure VIII.

Further, it is seen that while truing up, the capital expenditure projected by various units is

higher than actual expenditure incurred during the years 2009-10, 2010-11 and 2011-12.Please ensure that projections are made accurately since any shortfall in actual capex will


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Distribution

1. RED - ER-I /ER-II/NCR/NR/WR-I/WR-II/SR/Hydro Region2. ED Corporate Affairs/ PP&M /CP/Engineering/CC&M/EMG/ R&R/Commercial/

Fuel Security/ Fuel Transportation/IT/Systems

3. CEO/MD NVVNL/NESCL/NHL/BRBCL / KBUNL/ NSPCL/ NTECL/ RGPPL/APCPL/MUNPL/NPGPCL/BF-NTPC/NBPPPL/NHPTL/TPCL/NPEX/TELK

4. Heads of ProjectAnta/Auraiya/Barh/Barethi/Bilhaur/Bongaigaon/BTPS/Darlipalli/Farakka/Faridabad/Gadarwara/Gajmara/Gandhar/Kahalgaon/Katwa/Kawas/Kargone/Khasia

bara/Kolodyne/Koldam/Korba/Kudgi/Lara/Loharinag Pala/Mouda/NCTPP/ North

Karanpura/Ramagundam/Rihand/Simhadri/Singrauli/Sipat/Solapur/Talcher/TTPS/T

anda/TapovanVishnugad/Vindhyachal/Unchahar/Pakri-Barwadih/Chatti-Bariatu/

Kerandari/Tallaipali/Dulunga

5. Corporate CentreGMs/AGMs - /R&M/PE/CMG/ES/Consultancy/Environment Management/AshUtilisation/ R&R/CS/Cost Engineering/CS/Finance-Commercial/CP/BD/R&M-Engineering/ERP-Finance

6. Heads of P&SAnta/Auraiya/Barh/Barethi/Bilhaur/Bongaigaon/BTPS/Darlipalli/Farakka/Faridabad/Gadarwara/Gajmara/Gandhar/Kahalgaon/Katwa/Kawas/Khargone/

Khasiabara/Kolodyne/Koldam/Korba/Kudgi/Lara/Loharinag Pala /Mouda/NCTPP/North/Karanpura/Ramagundam/Rihand/Simhadri/Singrauli/Sipat/Solapur/Talcher/

TTPS/Tanda/TapovanVishnugad/Vindhyachal/Unchahar/Pakri-Barwadih/Chatti-Bariatu/ Kerandari/Tallaipali/Dulunga


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Annexure-I

Completion of major activity (Identification Schedule)

S.No. Activity Form No. Responsibility. Target Date

1 Furnishing of actual expenditure

upto end of previous year i.e.March 2012 reconciled with

balance sheet and for 2011-12.

F6.1 & 6.2

& Addl.

HOD( Fin) 14.05.2012

2 Submission of data for uploading in

SAP for generation of CapexBudget report

HOD (Fin) &

HOD( P&S)

21.05.2012

3 Uploading of Data for reportingunder SAP

ERP- Finance 24.05.2012

4 a) Submission of package wiselatest cost estimate to Cost Engg. &

thereafter finalisation &

b) Submission of Latest ProjectCost to Site

Corp. CS/SiteP&S

Cost Engg.

24.05. 2012

28.05.2012

5 Information to Corporate Budget

regarding confirmation of

reconciliation of Cost Estimate with

Cost Engg.

Intimation of accepted package

wise cost estimate to project &Corp. Budget

HOD (P&S)

Cost Engg. &

HOD (P&S.)

28.05.2012

04.06. 2012

6 Review of latest milestone charts & B1,B2 & All Heads of 12.06.2012


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communication budget to

respective project F&A

11 Submission of construction

materials budget to project P&S

C4,D4,E4 HOD (Material)

site

02.07. 2012

12 Submission of manpower budget to

F&A at CC/Project as required

C7.2 Corp.(HR)

Site (HR)

02.07. 2012

13 Submission of budget & write up

regarding new project to CorporateBudget

ED(PPM)/ 02.07. 2012

14 Submission of detailed budgetaryoutlays and write up about projects

undertaken by JVs and subsidiaries

BD / PPM,Company

Secretary &HOFs of

respective JVs &subsidiaries

02.07.2012

15 Submission of MBOA budgetcommissioning expenditure budget

to project P&S

C3 &2 4,D3&24,E3

& 24

HOD( P&S) 02.07. 2012

16 Submission of establishment

expenses budget to site Finance

C8 to C9,

D8 to D9

All HODs at

Project

02.07. 2012

17 Submission of budget for (a) S&I

identified project; (b) S&I

Unidentified project to Corp.

Budget

C 42,

D42,E42

GM(ES)-NPG 02.07. 2012

18 Compilation of project budget &

approval by Head of project

A, B, C, D

& E

HOD( P&S) 05.07. 2012

19 Submission of final budget

proposals for projects to respectiveEDs

A, B, C,

D&E

GM/AGM(I/c)

of Proj

10.07. 2012

20 Submission of approved budgetproposal to Corp. Budget

ED (Region) 16.07. 2012


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Annexure II

NTPC Limited

OUTCOME BUDGET MILESTONES FOR 2013-2014

Sl.No.Name of Scheme /

Programme/ProjectObjectiveOutcome

Annual Plan 2013-14 (` crore)Quantifiable

Deliverables/PhysicalMilestones

Processes/Timelines

ProjectedOutcomes

Remarks

1 2 3 4(i) 4(ii) 4(iii) 5 6 7 8

Non-PlanBudget

PlanBudget ComplementaryExtra-Budgetaryresources

i OngoingSchemes

ii New Projects

Total


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Annexure-III

Summary of budget proposal in respect of (Project name)

BH Particulars ApprovedCost

LatestAnt. cost

Act. Exp.upto

31.03.12

BE12-13

RE12-13

BE13 - 14

Remarks

A. Bal. Expdr. In respect of completed works (such as payment towards final bills/ contract closing)

1

2

3

4

5

Sub-Total (A)B. Ash Dykes and Land for Ash Dykes

1 Land for new ash

dyke2 R&R for new ash

dyke

3 Raising of existing

ash dyke

4 New ash dyke

(supply & erection)

Sub-Total (B)

Grand Total


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Annexure - IV

Contract Closing

Sl.No

Nameof

Work

LOAno. &

Date

Name ofContractor

Value of Contract TargetDate of

ContractClosing

Status ofwork

completionmonth / yr.

Anticipated amount

PayableOriginalaward

value

LaterAmended

Value

1 2 3 4 5 6 7 8 91

2

3

4

5

67

89

10


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Annexure-VI

Format for Budget Provision in respect of New Projects(Where the Investment Approval has not been accorded)

Project:_______________

Details of Advance Expenditure

Date Amount Approved

(Rs. Lakh)

Approved by Specific Item of Approval

(if any)

Details of Budget Provisions sought

Sl Description Approved Anticipated Expr forthe year2011-12

Cum.Expr.

31.03.12

BE12 - 13

RE12 - 13

BE13 14

A Approved Items

B Items not yet approved


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Annexure VII

New Schemes

S.No. Name of

Schemes

Latest Est.

Cost/TECcleared cost

Fund tie

up, if any

Expected

date for

Submissionof FR

Investmentapproval

1 2 3 4 5 6

Main PlantAward date

Commissioning Schedule Anticipated Outlay

Unit Date RE 2012 - 13 BE 2013 14

7 8 9 10 11


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Annexure - VIII

Details of Contract Awarded after Commercial Operation of Last Unit

Sl. No Description of Work Date ofAward

Expected Dateof Completion

Award Value(incl. cost ofOwner Issue

Material)

Latest Statusof Progress

1

2

3

4

5

6

7

89

10


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Annexure IX

Name ofJV/Subsidiary

EquityContribution by

NTPC

EquityContribution by

JV partner

Loan Total CapitalExpenditure

Cummulative

expenditure upto

31.03.2012

Expenditure forthe month of ------

Expenditure for2012 - 13

(upto the monthof ------


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