director's report 2012-13 - final

1

DDIIRREECCTTOORRSS'' RREEPPOORRTT

The Board of Directors take immense pleasure in presenting the 43rd

Annual

Report on the business and operations of the Corporation with the audited

statement of accounts for the year ended March 31, 2013.

II.. FFiinnaanncciiaall PPeerrffoorrmmaannccee

Financial Results

For the year

ended

March 31, 2013

(`in crores)

For the year

ended

March 31, 2012

(`in crores)

Gross income from

Sale of energy

Less: Advance against

Less: Intirm Power

Net income from sale of energy

5622

43

152

5426

5242

41

-----

5201

Other Income 967 541

Total Income 6393 5742

Operating Expenditure 4857 4409

Operating Profit 1537 1333

Finance Charges, Depn.,& prior

period adjustments 1366 1171

Profit before tax 171 162

Provision for Tax

Deferred tax

35

134

35

12

Profit after tax 2 115

Profit

• Profit before tax during the year was at `171 crores as against `162 crores

during the previous year.

Turnover

• Turnover during the year was `5622 crores as against `5242 crores during

the previous year, due to decrease in energy sales in Thermal and decrease

from Hydro Stations.

Generation

• Generation during the year was 24382 mus as against 28239 mus during the

previous year.

Dividend

• A dividend of `10 per share as in previous years has been proposed. The

total dividend outgo will be `31.27 crores

2

Special Reserve

• An amount of `0.06 crores, equivalent to 2.5% of the profit after tax is

transferred to a separate reserve to meet the contingencies in operation and

maintenance of the plants

Equity infusion

• GoK has contributed an amount of `400 crores during the year towards

Equity for setting up power generation plants by KPCL.

IIII FFiinnaanncciiaall MMaannaaggeemmeenntt

Financial Initiatives

With the regulatory environment prevailing in the State, the company has been

pursuing with various initiatives to reduce the cost of borrowings. The total

savings during the year 2012-13 is `74.17 crores. The details are:

• On account of availment of Short Term Loan at lower rate of interest, an amount

of `62.01 crores is saved in comparison with the rate of interest of Working

Capital loan;

• On account of availment of Short Term Loan at lower rate of interest, an amount

of `12.16 crores is saved in comparison with the rate of interest of Rupee Term

loan

IIIIII RReeaalliissaattiioonn ooff dduueess ffrroomm KKPPTTCCLL//EESSCCOOMMss

As part of the reforms in the power sector, GoK vide GO No. EN 131 PSR 2003

Bangalore dated 10.05.2005 ordered for assignment of PPAs to all the ESCOMs

for purchase of power from KPCL with effect from 10.06.2005. Accordingly,

KPCL has been selling power directly to ESCOMs w.e.f. 10.06.2005. Total

realization from ESCOMs/KPTCL during the year was at `̀̀̀4922.94 crores. The

outstanding dues from ESCOMs/KPTCL as on 31.03.2013 is `9384.44 crores.

KPCL has requested GOK to liquidate the old outstanding dues by

KPTCL/ESCOMs as per the Implementable Action Plan submitted to GOK under

“Financial Restructuring Plan for realisation of KPCL dues from

KPTCL/ESCOMs”.

IIVV PPoowweerr PPuurrcchhaassee AAggrreeeemmeennttss

The Power Purchase Agreements for the existing hydel stations, ADPH, RTPS

Units 1 to 7 & DG Plant were approved by KERC on 03.08.2009, which were

executed on 24.05.2010. Power Purchase Agreements for the BTPS Unit -1 has

been executed on 18.12.2010.

The Power Purchase Agreement for the ongoing and new projects have been

initialed on 18.12.2010 for capacity addition.

3

VV CCoorrppoorraattee GGoovveerrnnaannccee

a) Best Practices

• To meet the challenges of a competitive scenario in the power sector

• Cost consciousness and transparency in transactions

• Adaptations to reduce time and cost element in project execution

• Benchmarking with the best in India and abroad

• Proper budgetary control system

• Financial and commercial systems to ensure fair play for stakeholders like

vendors, contractors and lenders.

• Importance for obtaining lawful consents, permits and clearances in the

activities. Contractors, suppliers and other business associates are expected to

comply with all relevant legal requirements.

• To reflect faithful compliance to the tenets of public governance.

• Savings to be obtained through a professional approach in design, execution

and operation & maintenance of projects.

• Enhancement of knowledge and skills of employees through training

b) Social contributions

• Maintaining aesthetic gardens at the Kidwai Oncology Hospital, project

locations, Corporate Office and park with an attractive water fountain in front of

Vidhana Soudha.

• Passing on the benefit of cost cutting in construction, finance and operations to

the consumers.

• High performance levels to reduce cost and ensure reliable power supply.

• Making available corporation-run schools, hospitals and community centers for

the general public in the project areas.

• Maintaining interior roads near project locations.

• Strict compliance to environmental laws, regulations and norms.

CSR works at Bellary Thermal Power Project:

The following civil works have been taken up in Thimmalapura Village and

amount of `118.80 lakhs has been spent up to May 2013.

i) Improvements to water supply arrangements.

ii) Providing toilet blocks with necessary facilitates for the Govt. schools.

iii) Development of electrical works has been carried out during the year

2011-12.

iv) Construction of compound wall around the remaining religious places.

v) Construction of cement concrete roads for about a length of 3 kms

Following civil work has been taken up in Kudathini Village and an amount of

`87.56 lakhs has been spent up to June 2013:

- Construction of compound wall around religious places & Govt.

schools

4

Action plan is being prepared for CSR Activities based on the preliminary

survey report covering both villages which includes providing roads, drains &

culverts, improvement to electrical supply works, and other basic

infrastructure facilities. Estimates are under preparation. For electrical works

it is proposed to get this work done on deposit contribution basis with

GESCOM.

CSR works at Raichur/Yermarus Thermal Power Project:

1) Yedlapura Village: The following civil works have been done and

amount of `110.41 lakhs is spent for the same.

a) Laying of 25 cm thickness Murrum Blanket in the School Play

Ground area.

b) Providing of Library Books, Lab equipments, Maps, Charts,

Sports materials, Computers, Desks and Steel Almirahs etc.,

c) Construction of compound wall around religious places and the

burial ground.

d) Providing of Street lights and New electrical poles, Transformer

and laying of New LT lines etc.,

e) Construction of Ranga Mantapa, Store room, Library, Laboratory

and Toilets.

2) Deosugur Village: The following civil works have been done during

2012-13 and amount of `5.59 lakhs is spent for the same.

a) Jungle Clearance

b) Removal of Silt from Nalas.

c) Laying additional water supply lines

d) Pocket filling of the existing road from 2nd

cross to Temple.

3) Chikkasugur Village: Approval obtained for Construction of

Additional Room to Government School at the cost of `17.29 lakhs

during the financial year 2013-14. Tender finalized and works are in

progress.

4) Vadloor Village: Approval obtained for Construction of Additional

Room to Government School at the cost of `23.54 lakhs during the

finical year 2013-14. Tender finalized and works are in progress.

5) Yeganoor Village: Approval obtained for Construction of Additional

Room to Government School at the cost of `16.59 lakhs during the

finical year 2013-14. Tender finalized and works are in progress.

5

c) Board of Directors Sl.

No Name of Directors

Shriyuths/Smt/Kumari Post held

Period

From Upto

1 DV Sadananda Gowda Chairman 26.08.2011 24.07.2012

2 Jagadish Shettar Chairman 24.07.2012 21.05.2013

3 Shobha Karandlaje Vice Chairperson 23.09.2010 27.02.2013

4 Pradeep Singh Kharola, IAS Director 25.07.2012 21.05.2013

5 P Ravi Kumar, IAS Director 19.05.2011 05.09.2012

6 K Shivram, IAS Director 03.02.2012 28.09.2012

7 HN Narayanprasad Technical Director 19.02.2011 05.03.2013

8 SV Nesargi Director 02.01.2009 20.06.2013

9 S Shankar Rao Director 02.02.2009 07.02.2013

10 Lahar Singh Siroya Director 02.03.2009 20.06.2013

11 C Ramesh Director 07.02.2013 20.06.2013

12 SK Pattanayak, IAS Director 07.02.2013 13.08.2013

13 S Selvakumar, IAS Director 05.09.2012 01.08.2013*

14 Rajeev Chawla, IAS Director 28.09.2012 21.08.2013

15 LV Nagarajan, IAS Director 24.03.2010 06.09.2013

16 Siddaramaiah Chairman 21.05.2013 -

17 MR Kamble, IAS Managing Director 06.02.2012 -

18 P Bhaskar Technical Director 05.03.2013 -

19 R Nagaraja Finance Director 03.03.2010 -

20 DN Narasimha Raju, IAS Director 03.02.2012

21.05.2013

07.02.2013

-

21 D Satya Murty, IAS Director 23.10.2010 -

22 Dr. Amita Prasad, IAS Director 13.08.2013 -

23 Dr. H Basker, IAS Director 21.08.2013 -

24 G Kumar Naik, IAS Director 01.08.2013* -

25 ISN Prasad, IAS Director 24.12.2009

06.09.2013

25.07.2012

-

* As per Corrigendum vide Govt Order dated 28.08.2013

The Board places on record its appreciation of the services rendered by the

outgoing/ceased Directors during their tenure.

d) Constitution of Committees

i) Technical Committee

The Technical Committee has been constituted by the Board to assist and

advise the MD in respect of all technical and commercial issues referred by the

MD. Presently the Technical Committee comprises of Shriyuths D Satya

Murty, MR Kamble, MD, P Bhaskar, TD and R Nagaraja, FD.

ii) Audit Committee

Pursuant to Section 292A of the Companies Act, Audit Committee was

constituted in the Corporation in the year 2001 with the following terms of

reference:

i) Members of the Audit Committee shall elect a Chairman from amongst

themselves.

ii)

(a) The Audit Committee shall have discussions with the auditors

periodically about the working of existing internal control systems for

6

improving the same. The recommendations of such review shall be

placed before the management for implementation.

(b) The Audit Committee shall review half yearly and annual financial

statement. Recommendations arising out of such review shall be carried

out before placing the same to the Board.

(c) The review and recommendations of Audit Committee on internal

control systems shall be placed before the Board for implementation.

(d) The Audit Committee shall have powers to investigate into any matter

in relation to specified circumstances in the Section 292A of Companies

Act or referred to it by the Board and shall have access to information

and records. If necessary, engage external professional auditors for the

purpose.

(e) The recommendations of the Audit Committee on any matter relating to

financial management shall be binding on the Board of Directors. If

Board does not accept the recommendations, it shall record the reasons

and it should be communicated to shareholders.

(f) The Chairman of the Audit Committee shall attend the annual general

meeting to provide any clarification on matters relating to audit.

(g) The Audit Committee shall meet at least thrice in a year.

(h) One meeting must be held before finalisation of Annual Accounts and

one necessarily every six months.

iii) The statutory auditor, the internal auditor and the director in charge of

finance shall attend and participate in meetings of the Audit Committee.

Consequent to transfer / retirement of members of the Audit Committee, the

Committee has been re-constituted with the following members to review

and advice on the Annual Accounts 2012-13:

Shri LV Nagarajan, IAS

Smt. Amita Prasad, IAS

Shri D Satya Murty, IAS

Shri P Bhaskar, Technical Director

In the meeting held on 09.04.2013 the Managing Director briefed the

Committee about the proposed Revenue Budget proposals for the year 2013-14

along with the actual/budgeted/revised estimates for the years 2011-12 and

2012-13. In its meeting on 19.08.2013, the Audit Committee reviewed in detail

the annual accounts for the year 2012-13 and recommended the same for

consideration by the Board.

e) Meetings of the Board, sub-committees & management committees

pertaining to the financial year

i) Board level

Board : Eight

Technical Committee : Nine

Audit Committee : Two

Sub Committees – Board : --

ii) Management Contract Management : Twenty Four

7

iii) Annual General Meetings

f) Right to Information Act

The Corporation, as a public authority, has taken steps towards the compliance of

the Right to Information Act 2005. Public Information Officers and First Appellate

Authority have been nominated as contemplated under the Act. Suo-moto

disclosure of information on the activities of the Corporation under various heads

in addition to the mandatory requirement under the RTI Act 2005 is made

available on website:www.karnatakapower.com. During the year, 424 applications

were received and processed. Information was furnished for 421 applications. In

respect of 3 applications, information was pending , as these were received after

10.04.2013.

VVII CCaappiittaall EExxppeennddiittuurree

Capital Expenditure incurred by the Corporation amounts to `2363.17 crores.

Meeting

No. & Date

Held at Special

Resolutions

40 AGM -

25.09.2010

Regd. Office, No. 82, Shakti

Bhavan, Race Course Road,

Bangalore-560 001

Ordinary Resolutions for:

Authorising the Board of Directors

- for borrowing of funds; Approval

to mortgage/ hypothecate/ charge

assets of Solar PV project in favour

of Lenders & Approval to

mortgage/ hypothecate/charge

assets of BTPS Unit 3 in favour of

Lenders

EGM –

19.05.2011



Bangalore-560 001

Amendment to the Capital Clause

in the Memorandum of Association

41 AGM -

29.09.2011



Bangalore-560 001

_

EGM –

10.01.2012



Bangalore-560 001

Dematerialisation of securities –

issued in the name of Govt. of

Karnataka

42 AGM -

25.09.2012



Bangalore-560 001

Ordinary Resolutions for Approval to mortgage/ hypothecate/

charge assets of 5 MW Solar Plant

at Belakavadi in Mandya District in

favour of Lenders

EGM –

16.01.2013



Bangalore-560 001

Amendment to the Capital Clause

in the Memorandum of Association

& Amendment to the Memorandum

of Association - Inclusion of

provisions for Coal Mining

8

VVIIII OOppeerraattiioonnaall PPeerrffoorrmmaannccee

The Corporation operates many hydel stations, two thermal power plants, one

wind energy farm, one diesel generating plant and four solar PV plants with a total

installed capacity of 6498.905 MWs as on 31.3.2013 (Hydel:3652.35 MWs,

Thermal : 2720 MWs, Wind: 4.555 MWs, Diesel Generator: 108 MWs and Solar

PV plants: 14 MWs) Energy generated during the year from Hydel, Thermal,

Wind, Diesel Generating plant and Solar PV plants was 10151.04 MU, 13982.06

MU, 13.47 MU, 219.06 MU, 16.73 MU respectively totaling to 24382.36 MU.

The inflows to the three major reservoirs viz., Linganamakki, Supa & Mani is

about 257.49 TMC and the maximum levels reached during 2012-13 is 1809.55 ft,

549.50 M and 591.08 M respectively.

Thermal Stations during 2012-13:

a) BTPS Unit -1 generated 2990.59 MU with PLF of 68.28%

b) BTPS Unit -2 generated 912.98 MU

c) RTPS Unit 1 to 7 generated 9447.97 MU with PLF of 73.37%

d) RTPS Unit-8 generated 630.52 MU with PLF of 28.79%

Operational performance in terms of plant availability factor, plant load factor,

forced outages, specific coal and oil consumption per KWH and auxiliary

consumption was maintained at optimum level. The performance parameters of

thermal and major hydel projects for the year are indicated below:

A. Generation performance

Generation 2012-13 2011-12

Thermal 13982.06 13621.31

Hydro 10151.04 14192.30

DG 219.06 403.99

Wind 13.47 13.65

Solar 16.73 8.23

Total 24382.36 28239.48

B. Performance of RTPS

Particulars 2012-13 2011-12

U: 1 to 7 U: 8 U: 1 to 7 U: 8

Generation in Mus 9447.97 630.52 9580.204 951.308

Aux. consumption in Mus 925.66 61.25 905.31 89.11

Aux. Consumption in % 9.80 9.71 9.45 9.37

Plant load factor 73.37 28.79 74.19 43.32

Coal consumption (lakh MT) 70.19 4.68 71.87 6.94

Specific coal consumption

(Kg/KWh)

0.743 0.742 0.750 0.729

Specific oil consumption

(ml/KWh)

3.726 9.898 1.882 8.762

Plant availability factor 85.71 39.26 84.57 58.31

Units in operation 7 1 7 1

9

C. Performance of BTPS

Particulars 2012-13 2011-12

Unit - 1 Unit – 2 * Unit - 1

Generation in Mus 2990.59 912.98 3087.13

Aux. consumption in Mus 179.11 92.63 188.79

Aux. Consumption in % 5.99 10.15 6.12

Plant load factor 68.28 - 70.29

Coal consumption (lakh MT) 21.02 6.09 21.59

Specific coal consumption

(Kg/KWh)

0.703 0.666 0.699

Specific oil consumption

(ml/KWh)

1.375 11.37 1.540

Plant availability factor 83.71 28.98 76.91

Units in operation 1 1 1

* BTPS: U2- COD DATE: 18.2.2013

D. 1) Performance of Major Hydro Stations 2012-13

Stations

2012-13 2011-12

Generation

in MU

Plant

load

factor

%

Plant

availa

bility

factor

%

Aux

con % Generation

in MU

Plant

load

factor

%

Plant

availa

bility

factor %

Aux

cons %

Sharavathy 4669.57 51.50 95.33 1.24 5654.85 62.20 94.53 1.18

Nagjhari 1958.98 25.27 86.75 1.29 3634.94 46.76 95.11 1.48

Varahi 1029.39 25.55 97.77 2.19 1124.50 27.84 84.72 1.78

2) Performance of Minor Hydel Stations (100 MW & above)

Minor

Stations

2012-13 2011-12

Generation

in MU

Plant load

factor in

%

Availability

factor in %

Generation

in MU

Plant load

factor in

%

Availability

factor in %

Supa 331.24 37.81 86.00 546.52 62.22 98.44

Gerusoppa 456.24 21.70 99.70 576.76 27.36 99.46

Kadra 257.06 19.56 99.01 484.92 36.80 96.49

Kodasalli 217.72 20.71 96.74 451.06 42.79 93.36

MGHE 140.31 11.51 77.38 234.46 19.18 52.92

Almatti 418.37 16.47 91.00 516.21 20.26 86.18

E. Station wise Generation in Mus

Station 2012-13 2011-12

Raichur Thermal Power Station 10078.49 10531.51

Bellary Thermal Power Station 3903.57 3089.80

Sharavathy Generating Station 4669.57 5654.85

Gerusoppa Dam Power House 456.24 576.76

Linganamakki Dam Power House 199.63 303.99

Nagjhari Power House 1958.98 3634.94

Supa Dam Power House 331.24 546.52

Kadra Dam Power House 257.06 484.92

10

Kodasalli Dam Power House 217.72 451.06

Varahi Underground Power House 1029.39 1124.50

Mani Dam Power House 21.75 20.67

Almatti Dam Power House 418.37 516.21

Ghataprabha Dam Power House 49.04 100.05

Bhadra Dam Power House 47.06 72.16

Kalmala, Sirwar, Ganekal&Mallapur 0 0.010

Shivasamudram 238.19 332.12

Shimshapura Hydro Electric Station 50.57 42.31

Mahatma Gandhi Hydro Electric Station 140.31 234.46

Munirabad Power House 65.94 96.78

DG Plant Yelahanka 219.06 403.99

Kappatagudda Wind Farm 13.47 13.65

Solar PV Stations at Kolar, Belgaum,

Yelasandra&Belakawadi

16.73 8.23

Total 24382.36 28239.48

F. Level reached by the hydel reservoirs during the year 2012-13

Reservoir Full level

Min draw

down level

Highest

level in

2012-13

Date %

Capacity

Linganamakki 1819 ft 1715 ft 1809.55ft 8.10.2012 80.26

Supa 564mts 494 mts 549.50mts 12.10.2012 61.82

Mani 594.36mts 565.10 mts 591.08mts 17.9.2012 80.40

VVIIIIII PPrroojjeeccttss ccoommpplleetteedd dduurriinngg tthhee yyeeaarr

At Belakwadi, Mandya district 5MW Solar power project was commissioned on

25.06.2012 & BTPS unit-2 of 500MW was synchronized during August 2012

using coal and was declared for commercial operation on 18.02.2013. Capacity

addition of 505MW from these two stations was achieved during 2012-13.

IIXX.. OOnnggooiinngg PPoowweerr PPrroojjeeccttss::

1. Yeramarus (2x800 MW) Thermal Power Station

• As per the orders of GOK letter no. EN90 PPC2008 dtd.03.01.2009 KPCL

has signed the agreement for implementation of Yermarus (2X800MW)

thermal power station in joint venture with BHEL on 12.01.2009.

• Construction works have already started. Approximate total cost of the

project is `̀̀̀9015 crores. The station will generate 11913Mu per year.

Environmental clearance for the project has been accorded by ministry of

environment & forest (GOI) on 17.11.2009. LOA has been issued on

09.04.2010 for BTG and other main packages. The construction works on various fronts are in progress and the details are

as below:

• Coal handling plant:

LOA for supply & erection of Coal Handling Plant with Mill Reject

Handling System & Ash handling Plant issued to M/s BHEL on

11

21.03.2012. About 10,500MT of Reinforcement and Structural steel

for CHP & AHP works received at site. Wagon Tippler 1,2,3&4:

Excavation is under progress.

• Power House:

For Unit-1, erection of Power house columns commenced on

18.10.2012 & total erected cumulative 5400MT. Column erection

for Unit-2 started on 28.11.2012 & Cumulative erected 3700MT.

• Boiler:

Erection of columns is in progress. 840MT erected. Cumulative

7285MT erected for unit-1 & 834MT erected, Cumulative 4731MT

erected for unit-2.

• Chimney:

LoA has been issued for twin Flue RC chimney on 26.04.2012 to

M/s. Gannon Dunkerley & Co. Ltd. PCC works completed. Raft

concreting completed. Preparations for shell concreting in progress.

• 400kv Switch Yard:

Equipment foundations in progress.

2. Bellary Thermal Power Station, Unit-3: (1 x 700 MW)

• GOK has approved to take up BTPS 3rd

unit (700MW) Construction works.

The approximate total cost of the project is `4686 crores. This station will

generate 5212Mu per year; Environmental clearance for the project has

been accorded by ministry of environment & forest. After negotiation with

M/s BHEL, LOA has been issued on 28.09.2010, on the basis of EPC for

amount of `̀̀̀3700 crores for construction works. The construction works on various fronts are in progress and the details are

as below:

• Coal handling plant:

1860 MT of Structural fabrication completed out of total 7000 MT.

• Power House:

Foundation works of power house completed. 4135 MT of Structural

fabrication completed out of total 7000MT.

• Boiler:

Erection commenced on 26.11.2012, Erection of 3100MT of

structures completed out of 23000MT.

• Chimney:

Shell concreting is in progress.

• 400kv switch yard:

Equipment foundations is in progress.

3. Renovation, Modernisation & Upgradation works of Nagjhari power

house Unit-6 (15 MW)

Up gradation works of Nagjhari power house Unit-6 from 135 MW to 150

MW has been entrusted to M/s VATECH Hydro India Ltd. The unit is

expected to operate during March 2014.

12

4. Ghataprabha Hydro Electric station 20MW: - Tender process is in progress

5. Munirabad Hydro Electric station –Additional unit 10MW:

- Work in progress

6. Clean Development Mechanism (CDM): Solar projects in Kolar, Belgaum and Raichur are registered under UNFCC

as CDM projects. CDM validation of Mandya project is under progress.

7. New projects: GoK has allotted two solar plants to KPCL of 5MW capacity in Haveri

district of Karnataka, one plant at Chandapur village and another at

Kaginele village, Haveri district. The preliminary works for taking up

5MW solar projects at Haveri district are in progress. Land acquisition is

under progress.

XX NNeeww aanndd PPrrooppoosseedd PPoowweerr PPrroojjeeccttss

1. Edlapur Thermal Power Station: (1x800 MW)

• For development of Edlapur TPS (1x800 MW) in Joint Venture with

M/s BHEL, a MoU was signed on 12-01-2009 as per GoK Order No. EN 90

PPC 2008 dt.03-01-2009.

• Estimated cost of the project is `4960 crores and it would generate 5957 MU

of energy annually.

• Clearances for the project are received from Airport Authority of India &

Archaeological Survey of India, Health & Family Welfare Department and

Fisheries Department, GoK.

• Regarding obtaining MoEF clearance, following is the status;

a) Public hearing was held at Raichur on 16.6.2009

b) Application for environmental clearance was submitted to MoEF on

22.9.2009

c) Long term coal linkage application for allotment of 5.5 mtpa of coal

for 1x800 MW unit has been submitted to the Standing Linkage

Committee (Long Term) on 03-04-2009.

d) MoEF Expert Appraisal Committee meeting held on 10-11-2009 at

New Delhi decided to defer decision in the matter in view of the

non-availability of firm coal linkage and no clarity on the source of

fuel and its characteristics.

e) Coal linkage is awaited.

f) All the required details regarding pre-qualifications and

prioritization for coal linkage sought for by CEA have been

furnished.

LOI has been issued to M/s.BHEL on 25-09-2010. The work will be

commenced after obtaining clearance from MoEF.

13

2. Godhna Thermal Plant at Chhattisgarh (2x800 + 1x800 MW)

�� Govt. of Karnataka vide GO No. EN 80 PPC 2008, dated 15.09.2008 and

EN 134PPC 2008 dated 4.6.2009 has allotted this project to KPCL. This is

a Super Critical Thermal Plant proposed to be implemented at Godhna

Village, NavgadhTaluk, Janjgir – Champa, District, Chhattisgarh State

�� KPCL has signed MoU with Chhattisgarh Government and Chhattisgarh

Power Holding Co. on 8.9.2008. In terms of the MOU, Implementation

Agreement has been signed on 29.6.2010

�� The capacity of the project is 2x800MW in the first phase and 1x800MW in

the second phase. The estimated cost of the project is `9015 crores ( for the

first phase) and it would generate 11914 MU of energy annually.

�� 1260 acres of land is allotted to the project by Government of Chhattisgarh,

out of which, 1028 acres of land is private and Government land is 232

acres.

�� An amount of `105.61 crores including service charges of `2.79 crores has

been deposited with GoC by KPCL towards the cost of the land.

�� 1016.23 acres of private land has been acquired by GoC out of 1028 acres

and disbursement of compensation to land losers at the rate of `10.00 lakhs

per acre by Chhattisgarh Government and an additional compensation of

`3.8 lakhs per acre by KPCL (Totaling to `13.8 lakhs per acre) is in

progress. About 94% progress has been achieved so far.

�� 232 acres of Government land is yet to be handed over to KPCL .

�� Socio economic survey and EIA study is completed.

�� Application for coal linkage has been filed with Ministry of Coal and Coal

linkage is awaited.

�� NOC from Airport Authority, Wildlife & Ministry of Defence have been

obtained.

�� Public hearing has been conducted on 29.07.2010 by Chhattisgarh

Environment Conservation Board. There were no objections regarding the

establishment of the plant. Chhattisgarh Environment Conservation Board

has forwarded the proceedings of the public hearing to MoEF on 28.8.2010.

�� The DPR & REIA reports are ready.

�� Application has been filed with MoEF on 04.09.2010 for Environmental

clearance to the project.

�� 52 M Cum (1.84 TMC) of water per annum has been allotted by GoC for

the project to be drawn from the Mahanadi river.

�� To provide water to the project during the lean season, Chhattisgarh

Government is constructing a barrage across the river near Sheorinarayan

Town and the cost of which is to be shared by three user companies on pro-

rata basis. KPCL has paid `58.15 Crores as its share and the same will be

adjusted towards the water cess to be paid at a later date.

14

�� Agreement has been signed with PGCIL on 05.01.2011 for evacuation of

763MW of power from Chhattisgarh State to Karnataka.

�� KPCL has furnished a Bank Guarantee of `38.15crores at the rate of `5

lakhs per MW to PGCIL.

�� KPCL has signed Transmission service Agreement with PGCIL on

24.1.2013.

�� Power purchase agreement has been signed with Chhattisgarh State Power

Trading Company on 05.01.2011.

�� As a part of CSR activity, a Mobile Health Clinic is in operation and de-

silting of tanks are taken up at the request of Chhattisgarh Government.

3. Tadadi Combined Cycle Power Plant: (2100MW)

� Govt. of Karnataka Vide G.O. No. CI 222 SPI 2009, Bangalore dated

16.11.2009 has accorded approval to establish the 2100 MW Tadadi Gas

based Combined Cycle Power Plant in KumtaTaluk, Uttara Kannada

District.

� Estimated cost of the project is `9587 Crores and it would generate 15637

MU of energy annually.

� Pre-feasibility report prepared and submitted to various Departments for

obtaining clearances.

� 400 acres of land acquired from KIADB and possession of the same taken

over on 02-06-2010.

� NOC from Commodore, Naval Base, Karwar received (Airport clearance).

� Approved TOR received from MoEF, New Delhi on 23-09-2010.

� Topo graphical Survey completed.

� The work of carrying out Environmental Impact assessment (EIA) studies

is entrusted to M/s SENES Consultants, Hyderabad and the work is in

progress. Rapid Environmental Report prepared and submitted to KSPC

with a request to carry out public hearing.

� Detailed Project Report completed.

� The work of examining the technical and commercial aspects involved in

construction of LNG/FSRU and supply of indigenous gas was awarded to

M/s.TGE Gas Engineering. The agency has completed the work and

submitted the feasibility report, Request for participation (RFP) and Gas

supply purchase agreement (GSPA).

� The work of carrying out studies related to design & operational parameters

for offshore facility, location of cooling water intake and outfall,

delineation of HTL-LTL &CRZ clearance, Marine EIA studies,

identification & selection of location for single point mooring and pipeline

was entrusted to National Institute of Oceanography (NIO). NIO has

completed all the works entrusted to them and submitted the reports.

15

4. Gundia Hydel Scheme: (400 MW)

The proposed Gundia Hydel Scheme with an ultimate installed capacity of 400

MW is located in Hassan & Dakshina Kannada Districts. It would generate

906 MU of energy per annum. The cost of the project is `̀̀̀1126. crores.

Techno-Economic clearance is obtained from CEA on 25-04-2008 for Phase-I

(1x200 MW). Clearance from MoEF is awaited.

� GoK allotted the project to KPCL on 06-10-1998.

� Clearances from various Departments of GoK / GoI have been obtained.

� Survey works of Phase-II is under progress.

� The project 1x200 MW- phase-I was considered for the Environmental

Clearance by the Experts Appraisal Committee of the MoEF in its 38th

meeting held on 30-06-2010 and decided to recommend for Environmental

Clearance noting that the Ministry may consider the report of Western

Ghats Experts Committee constituted under the Chairmanship of Prof.

Madhav Gadgil. The Experts Committee has submitted its report to MoEF.

GoK submitted its opinion on this report as called by MoEF.

� Further the MoEF & GoI has now constituted a committee under the

Chairmanship of Dr. K.Kasturirangan, Member (Science), Planning

Commission, New Delhi to prepare and submit an action plan drawing a

roadmap on allowing economic and developmental activities in the Western

Ghats and the Committee held a meeting on 21.08.2012. As desired during

that meeting, the relevant documents are submitted to this new committee.

The high level working group visited the project site on 13.1.2013 and

MoEF has sought some more clarifications. The details have been

furnished. The High Level Working Group (HLWG) under Chairmanship

Dr.K.Kasturirangan has submitted report on 15.04.2013 to MoEF, GoI.

� Clearance from MoEF is awaited.

� The proposal for the diversion of Forest land required for the project is to

be submitted to the Central Government. To firm up such a proposal, the

State Forest Department is carrying out the work of enumeration of trees in

the project area and thereafter the proposal will be submitted to the Central

Government.

5. Shivasamudram Seasonal Scheme (345 MW)

� GoK has accorded approval for establishing the power plant with an

installed capacity of 345 MW by KPCL vide GO No. EN 74 PPC 2008

dated: 07.06.2010

� The estimated cost of the project is `̀̀̀1522.82 Crores and at 90% PLF,

dependable generation is 1119 MU per Annum

� Clearance for the project is received from Fisheries Dept., Archaeological

Survey of India, Dept. of Health& Family Welfare and required water

allotment has been obtained from Government of Karnataka. on 29.03.2011

16

� Application for allotment of 90 Ha of forest Land required for the project

gas been submitted to Forest Dept. in Form A. Allotment is awaited.

� Survey works for all the components of the project completed

� As per approved TOR Environmental Impact Studies conducted draft report

awaited.

� Detailed Project Report of the scheme is submitted to Government of

Karnataka and Central Electric Authority for obtaining Techno Economic

clearance. Observations are being attended.

6. Additional unit at Munirabad Hydro Power Station: (10 MW)

� Government of Karnataka has accorded approval to establish this project

vide order no. EN 134 NCE 2010, Bangalore dt. 18.05.2010

� Environmental clearance for establishment of the project has been accorded

by Department of Forest, Ecology and Environment, Government of

Karnataka on 11.3.2011

� LoI issued on 04.02.2012. Agreement executed with M/s ALLONWARD-

SSIPL-KR & CO. CONTORTIUM, Chennai, to execute the work at a total

cost of `36.32 crores.

� DSPR members have inspected the site and submitted the report. Approval

from Irrigation Department and Water Resource Department has been

obtained.

� Site was handed over to M/s ALLONWARD-SSIPL-KR & CO. on 19-02-

2013.

� Host country approval received and CDM validation is under process.

7. Ghataprabha Hydro Power Project across GRBC of Hidkal Dam (2x10

MW)

� Environmental clearance for establishment of the plant has been accorded

by Department of Forest, Ecology and Environment, Govt. of Karnataka on

14.3.2011

� GOK has allotted 20 MW (2X20) additional units at Ghataprabha Dam

Right Bank canal Vide order no. EN101 NCE 2010/21.01.2013.

� The estimated cost of this 20 MW capacity project is `̀̀̀99.00 crores, which

would generate 40 MUs of energy per annum. Earlier Tender cancelled and

fresh Tender process is on.

8. Wind Energy Projects [500 MW]

KPCL and NTPC have entered in to a ‘MOU’ on 12.01.2009 to Plan and

implement a total of 500 MW Wind Energy Projects in Karnataka. Out of 500

MW wind farm capacity, 400 MW would be put up by NTPC and about 100

MW by KPCL. Consequent to approval by KPCL Board, KPCL consent for

extension of validity of the subject MOU upto 11/01/2015 has been

communicated to the General Manager (REDG)/NTPC Ltd., New Delhi.

17

a) Guledagudda Wind Power Project:

GOK has allotted ‘100 MW’ Wind Power Project at Guledagudda Hill Ranges

to M/s NTPC Ltd., New Delhi vide G.O. No. EN 570 NCE 2009 Bangalore

dated: 25/11/2009. The following works were taken up and got done through

various agencies:

� Topographical survey and Superimposing revenue survey maps on

contour survey drawings and de-marking boundary on ground at

Guledagudda Hill ranges – M/s MAPCON Consultants, Bangalore.

� Micro siting and Energy Estimation of Wind Farming at Guledagudda Hill

Ranges - M/s C-WET, Chennai

� Submission of detailed proposal for power evacuation along with relevant

drawings and processing fees to KPTCL.

� Road alignment and Survey for the Guledagudda Wind Energy Project –

M/s MAPCON Consultants, Bangalore.

Expenditure incurred by KPCL for the above said works has been reimbursed

by M/s NTPC – New Delhi.

M/s C-WET, Chennai have advised M/s NTPC Ltd., New Delhi to take up

fresh Wind Power measurements at Guledagudda Hill Ranges. In view of the

request of M/s NTPC Ltd., Belgaum the 80mtr tall wind mast procured by

KPCL for Kappatagudda was diverted to Guledagudda and in this regard the

advance amount paid by KPCL to M/s C-WET, Chennai has been reimbursed

by M/s NTPC Ltd., Belgaum. Subsequently, M/s NTPC Ltd., New Delhi have

arranged for installation of 80 mtr tall Wind Mast and commenced Wind

measurements at the site from 17.05.2012 onwards.

b) Kappatagudda Wind Power Project:

� Govt. of Karnataka has allocated 39.75 MW out of 56.50 MW proposed by

KPCL vide GoK Order No. EN 569 NCE 2009 Bangalore dated 26.11.2009

to develop additional wind power at Kappatagudda. Amendment to the

subject G.O.K. order dated 26.11.2009 is sought and follow up action is

taken through reminder letters to “KREDL” at regular intervals.

� Topographical survey has been completed by M/s. MAPCON, Consultants,

Bangalore.

� No Objection Certificate for height clearance has been received from

Airports Authority of India, Chennai Airport vide their letter dated:

05.02.2010 in respect of Kappatagudda Wind Energy Project.

� M/s MAPCON, Consultants, Bangalore have completed the Road

Alignment Survey work and handed over all the deliverables to KPCL.

� Detailed proposal for power evacuation was submitted to KPTCL and in

response, Chief Engineer Electricity (TA&QC)/ KPTCL, Bangalore has

communicated approval for the power evacuation scheme vide his letter

dated: 01.07.2010.

18

� M/s C-WET, Chennai were requested to carryout Micrositing and Annual

Energy estimation for the wind farm project proposed at the new area of

Kappatagudda Hill ranges. Accordingly, M/s C-WET, Chennai have carried

out Micrositing and Annual Energy estimation and submitted the final

report dated 09.10.2009. Further, C-WET, Chennai were requested to

carryout Micro siting and Annual Generation Estimation in case of

Installation of higher capacity WTGs in place of the existing units at

Kappatagudda Wind Farm of KPCL. On completion of the works M/s C-

WET, Chennai have submitted the final report dated: 09.09.2010 and stated

that installable capacity would be 9.9 MW (6 X 1.65 MW).

c) Wind monitoring studies at Itnal & Kappatagudda (New Area)

� Wind Mast of 80 mtrs height has been installed and commissioned by C-

WET, Chennai on 9th

October 2010 at the location adjacent to ‘3 MW’

Solar Plant at Itnal Village of Chikkodi Taluk. The wind pattern studies

have been carried out for a total period of two years by M/s. C-WET,

Chennai. Subsequent to collection of data during November 2012, the

Wind Mast has been dismantled and the released materials have been kept

in safe custody at Itnal Solar Plant premises. Subsequently, the fencing,

watchman shed and Gate provided at the location have also been

dismantled and the released materials thereof have been returned to ‘KPCL’

Stores at Ambikanagar. M/s C-WET, Chennai have furnished the final

report on the Wind Monitoring Studies conducted at Itnal site for two years

period vide their letter dated: 25.03.2013.

� Clearance for taking up ‘WRA’ studies at the new area identified at

Kappatagudda hill ranges by installing ’80 mtr’ wind mast is sought from

DCF/Gadag. Inspite of reminder letters and regular personal follow-up, the

clearance is yet to be received from DCF/Gadag.

9. Bidadi Combined Cycle Power Project:

� Government of Karnataka vide order No.EN 78 PPC 2010, Bangalore

dated: 05.07.2011 has accorded approval for implementation of the first

block of Gas based 1 X 700 MW ± 20% Biadadi Combined Cycle Power

Plant on Liquefied Natural Gas(LNG) fuelin Bidadi hobli, Ramnagar

District.

� Estimated cost of the project is `2500 crores and it would generate

5212MU of energy annually.

� EPC bids for the 700 MW ± 20% capacity initiated during August 2012 has

been cancelled and fresh tender process under two stage is initiated in

August 2013.

� Gas Transportation Agreement (GTA) entered into with M/s GAIL on

18.02.2013 for transportation of gas through Dhabol-Bangalore pipeline

laid by M/s GAIL.

19

XXII CCoonnssuullttaannccyy aanndd EEnnggiinneeeerriinngg SSeerrvviicceess DDeeppaarrttmmeenntt [[CCEESSDD]]

The total earnings from Consultancy Services as on March 2013 is `1052.08

lakhs.

The Consultancy works in progress are as follows:

• NTPC Hydro Ltd., - Rammam Stage – III HEP in West Bengal State

• Various lift irrigation schemes of KBJNL

• Kalasa and Bandur Nala Diversion Schemes of KNNL

• Stability analysis of Chamaraja Sagar Dam of BWSSB

• Badanavalu Lift Irrigation Scheme of CNNL

XXIIII MMaannaaggeemmeenntt ooff CCooaall

A. Coal for RTPS

KPCL has established 7 Units of 210 MWs and 1 Unit of 250 MW capacity

in the coal based Thermal Power Station at Shakthi Nagar, near Raichur.

Coal requirement is about 27,000 tonnes per day for operation of eight units

at full load. Supply of coal is from

(i) Singareni Collieries Company Ltd., Andhra Pradesh,

(ii) Western Coalfields Ltd., Maharashtra,

(iii) Mahanadi Coalfields Ltd., Orissa and

(iv) Imported coal.

Coal receipt during the year 2012-13 was 77.387 lakh MT. The specific coal

consumption was about 0.743 Kg/Kwh. The coal receipt details are as

under:

Qty. in Lakh MT

Sl.

No. Source Coal Receipt

I SCCL 24.023

2 WCL 27.411

3 MCL 9.712

4 Imported Coal 15.514

5 Captive coal block of KPCL 0.727

Total 77.387

B. Coal for BTPS

BTPS Unit-I (1 x 500 MW):- Coal requirement is about 7000 MT per day

for operation of the unit-I at full load. Govt. of India has allotted dedicated

coal mines in Wardha Valley of Maharashtra and a joint venture company

of KPCL and EMTA named Karnataka EMTA Coal Mines Limited

(KECML) is developing the coal mines and supplying coal to BTPS.

BTPS Unit-II (1 x 500 MW):- Coal requirement is about 7000 MT per day

for operation of the unit-II at full load. KECML has been requested to

enhance the coal production to 5.00 Million tonnes per annum to meet the

requirement of BTPS-II. Ministry of Coal allocated 9.90 Lakh MT for

20

2012-13 as tapering linkage and informed KPCL that coal for this unit shall

be met from the already allocated captive coal blocks. This tapering linkage

has come to an end by March 2013. However, MoEF clearance for

enhancement is yet to be received. In the meantime SCCL offered 5.00

Lakh MT of coal through Road Cum Rail on MoU basis to BTPS at a price

on par with that offered to NTPC. KPCL accepted to lift the coal so offered

and finalized the coal transportation agencies to move the coal through road

cum rail mode.

Coal receipt for BTPS for the year 2012-13 was 29.029 lakh MT. The

specific coal consumption was about 0.698 Kg/Kwh.

C. Coal Blocks for on going, / New Thermal Projects of KPCL

Ministry of Coal, GoI vide its official memorandum dated 03.07.2013 has

released the Record Note of discussions of the 5th

meeting of Inter-

Ministerial Committee (IMC) held on 07.06.2013 to facilitate the allocation

of coal blocks from the applications received from the Government

Companies/Corporations, wherein coal block at Deocha-

Pachami/2012MT/West-Bengal, with an allocation of 382 million tonnes

has been allocated to KPCL against application for 2x800 MW YTPS,

1X800 MW ETPS, 700 MW BTPS Unit 3 and 2x800 MW Godhana TPS.

XXIIIIII EEvvaaccuuaattiioonn ooff FFllyy AAsshh ffrroomm RRTTPPSS aanndd EEnnvviirroonnmmeenntt PPrrootteeccttiioonn

mmeeaassuurreess::

During 2012-13, KPCL invited tenders for issue of fly ash from RTPS units

1 to 6 and finalized the contract with M/s.ARV Cement Society for issue of

8.00 lakh MT per annum of fly ash at the rate of `215 per MT. KPCL is

issuing fly ash free of cost to many SSI units.

Quantity of fly ash lifted by agencies and SSI units during 2012-13 is as

under:

Qty in Lakh MT

Sl.

No.

Agency

RTPS Unit

Nos.

Quantity

1. M/s ACC India Ltd., 1 & 2 2.211

2. M/s ARV Cement Society 3, 4, 5 & 6 4.375

3. SSI Units 3, 4, 5 & 6 1.096

4. Private Agencies 3, 4, 5 & 6 0.118

5. M/s ACC India Ltd., 7 1.230

6. M/s Lafarge India (P) Ltd., 8 0.070

Total 9.100

Total production of fly ash was 24.974 Lakh MT out of which reclaimable

fly ash was 17.981 lakh MT. The quantity of fly ash lifted was about 9.028

lakh MT and the utilization is 50.20%. The average ash content of the coal

supplied to RTPS was 33.35%.

21

XXIIVV MMaannaaggeemmeenntt IInniittiiaattiivveess ffoorr IImmpprroovveemmeenntt

i) Training

The Corporation emphasizes on the need to update the competencies of its

employees on a continuous basis so as to equip them to keep abreast of

latest developments in the Industry. It lays stress on developing the skills

and competencies of the employees in order to achieve the goals on

economic principles in the competitive environment. With this objective,

the Corporation draws a systematic training plan every year so as to suit the

employees at every level.

During the year 2012-13, 32 in-house training programmes were conducted

and 6 external training programmes conducted by various training agencies.

Important trainings imparted to the employees during the year are as

under:

a) In-house Trainings:

SL. NO. NAME OF THE PROGRAMME

1 Management of Hazardous waste, Used Batteries & E Waste

2 Right to information Act

3 Boiler control

4 Going Beyond the circumstances

5 Kidney to prostrate disease/urology

6 Energy conservations and Audit

7 Elimination of Distribution Problem & Battery charger Maintenance

8 Tax Management

9 KTPP Act & RTI Act Proactive & Procedure

10 Turbine, Generator, Switchgear, Transformer in Hydro Power Station

11 Corporate communications & Organization Development

12 Total Productive Maintenance

13 Preventive Management of Electrical Equipments

14 Effective Material Management

15 Dual responsibility home & office

16 Project Management

17 Anger Management for better work & Health

18 Finance for non-finance executives

19 Renewable energy

20 Current Trend in Quality Management

21 Attitudinal change

22

Efficient operation & Maintenance of Boiler Latest trend &

Technologies

23 Safety Awareness & Stress Management

24 Refresher Training Programme for Internal Auditor

22

25 Shuttle Management

26 Efficient Team Work

27 Transformer Design, Testing & Maintenance

28 Change Management

29 Problem solving & Decision Making

30 Workshop on Auto Desk Software

31 Activity Based costing

32 Relay Protection

c) External Trainings

Sl. No. Name of the Programme

1

Super Critical Maintenance & Trouble Shooting of Pipe System,

Turbine & Boiler

2 Thermal Power Plant Environmental Issues, Challenges & Solutions

3 Domestic Enquiry, Disciplinary Action and Discipline

4 Tunneling Asia – 2013

5 Dam Safety & Rehabilitation

6 250 MW Hydro Plant Operation Training in Simulator

Education Cum R & D Training Centre:

c) National Training Centre for Solar Technology:

� KPCL has implemented four Solar Photo Voltaic Power Plants in

Karnataka viz., in Kolar, Belgaum & Raichur District-3MW each and 5

MW in Mandya District totaling 14 MWs which are first of its kind in the

country.

� In recognition of KPCL’s initiative to set up solar plants, MNRE. New

Delhi has appreciated the same and sanctioned National Training Centre for

Solar Technology to KPCL. It is an Education cum R&D training Centre.

MNRE has also released `1,00,00,000/- as initial fund for the training

programme.

� The objective of the training programme is to impart knowledge to the

Entrepreneurs / Developers /Consultants / Manufactures and suppliers of

solar Systems regarding setting up of solar PV plants in the country and

give an insight regarding the various technologies of solar power,

installation and commissioning procedures, design, construction and O&M

issues and Government Polices and Latest developments in the field of

Solar and Renewable Energy Sector.

� Smt. Shamim Banu, IAS, Addl. Chief Secretary (Energy) GOK and Dr.

Bhargava, Director-MNRE, inaugurated the first training, programme on

19.09.2011.

� Till date 12 Batches of training programme have been conducted and 425

participants are trained and benefitted.

23

� The training programme consists of four days of class room training and

two days of site visit to local manufacturing factory and visit to grid

connected solar plant established by KPCL at Kolar/Shivasamudram.

� A 5 kW solar PV Roof Top Power Plant (3 kW Crystalline and 2 kW Thin

Film Technology) Grid /Stand Alone system has been installed on the roof

top of Yelahanka DG Plant administrative building for demonstration

purpose as a part of training programme.

d) Technical Assistance to the Government and Public organizations:

Sl.No. Organisation Subject

1. Sainik School,

Bijapur

Proposal for 100 kW Solar

Rooftop Power Plant

2. Karnataka Niravari Nigam

Limited

20 kW Wind Solar Hybrid

System to install at Chitradurga

on the top up KNNL Building

3. Koppal Gavi Mutt To install 500 SPV Thin film

Module about 25 kW in the

premises of Gavi Mutt at Koppal

4. Karnataka State Natural

Disaster Monitoring Centre

(KSNDMC), Bangalore

Proposal for 80 kW Solar

Rooftop Power Plant

e) Seminars and Conferences/ workshops and Training Programs:

KPCL has been providing expert faculty to various Govt./Private Esteemed

organizations to propagate Solar and Renewable Energy Technology.

ii) Career Growth

On implementation of career growth scheme, employees were upgraded/re-

designated as under during the year:

To the level of EEs & Eqv. 33

To the level of AEEs & Eqv. 01

To the level of AEs & Eqv. 39

To the level of AAOs & OMs -

Workmen levels 248

iii) Deputation to foreign countries

Nil

iv) Deputation of employees to other organisations

The services of the employees of the Corporation are sought by GoK and

other Organisations. During the year, services of 21 Engineers, 5 non-

engineering officers were spared on deputation basis.

24

XXVV EEmmppllooyyeeeess SSttrreennggtthh

* Employees Retirement/VR/Resignation/Expired taken from 01.04.12 to

31.03.13

** Including 3 employees of erstwhile VVNL on 31.03.2013

Break up in Corporate Cadre

Engineering Professionals - 1945 Other Professionals - 508

XXVVII PPuubblliicc DDeeppoossiittss

The Corporation has stopped accepting the deposits from Public from Nov.

2002. Deposits from past and present employees were accepted/renewed till

September 2005. At the end of the year, unclaimed deposits stood at `12.82

lakhs. Unclaimed deposits over 7 years have been transferred to Investors

Protection & Education Fund.

XXVVIIII AAuuddiittoorrss

(i) Statutory Auditor:

The C&AG have appointed M/s Ramraj & Company, Chartered

Accountants, as the Statutory Auditors for the year 2012-13. The

auditors visited all accounting units, verified the records, obtained

explanations and finalised the audit work in a reasonable time.

(ii) Internal Auditors:

External Chartered Accountants were appointed during the year

2012-13, in order to strengthen the Internal Audit at RTPS, BTPS

and Hydro stations.

Particulars of employees As on

31.3.2013

As on

31.3.2012

Total strength ** 5883 6041

Corporate 2453 2382

Workmen 3427 3642

Deployment on Construction & Erection 599 623

Deployment on O & M 2733 2694

Deployment on auxiliary service 2548 2707

Entry of employees 281 63

Exit of employees * 404 306

Exit of employees under VRS Nil Nil

SC employees – in percentage 15.61% 15.56%

ST employees – in percentage 3.29% 3.38%

Handicapped employees in percentage 0.79% 0.64%

Ex-servicemen 0.47% 0.46%

Man/MW ratio 0.91 1.0

25

(iii) Cost Auditor:

Government of India has introduced cost audit for Generation

Companies from financial year 2005-06. The Company has

appointed M/s KPR & Associates, Cost Accountants as Cost

Auditors for the year 2012-13. Cost Auditors have carried cost audit

and have furnished their report and the same will be filed with MCA

after taking the same on record.

XXVVIIIIII RReevviieeww bbyy tthhee CCoommppttrroolllleerr && AAuuddiittoorr GGeenneerraall

Comments on working results of the Corporation by the Comptroller and

Auditor General of India, forming part of this will be appended when

received.

XXIIXX PPaarrttiiccuullaarrss aass ppeerr CCoommppaanniieess ((PPaarrttiiccuullaarrss ooff EEmmppllooyyeeeess)) RRuulleess 11997755

aanndd aass aammeennddeedd

None of the employees of the Company was in receipt of remuneration

amounting to `60,00,000 and above per annum or at the rate of `5,00,000

and above per month during the financial year.

XXXX SSuubbssiiddiiaarryy CCoommppaannyy aanndd aalllliieedd aaccttiivviittiieess

The Corporation has two Subsidiary Companies, viz.: (i) KPC Bidadi

Power Corporation (Private) Ltd. & (ii) Karnataka EMTA Collieries Ltd.

which have been established to implement the combined cycle project at

Bidadi as a joint venture and for development of new coal block to be

allotted to KPCL respectively. Statements as required under Section 212 of

the Companies Act are appended.

XXXXII IITT aanndd CCoommppuutteerriizzaattiioonn

The Corporation has taken a number of IT initiatives to meet its business

commitments. Some of the IT activities/infrastructure as detailed below:

1. Hardware platform:

� Provided Blade Servers and Rack Servers with windows 2008 at corporate

office and major projects.

� Provided Core to Duo/i3 PCs with Windows 7 and MS office 2010

software and printers up to the level of Executive Engineers and all critical

users at corporate and major project offices.

� Purchase order placed for supply and installation of 214 no. PCs with

Windows 8 and MS office 2013 and 354 no. Printers (including copiers, fax

machine and scanners).

2. Connectivity:

� Established OFC connectivity between all major power houses and office

complex, Local Area Network and Wide Area Network through

MPLS/MLLN circuits of BSNL at corporate and major project offices.

26

� Provided internet and mailing up to the level of Executive Engineers and

critical users.

3. Application Software:

The application software developed and implemented are:

a) Fuel Management System

b) Integrated Inventory Management System

Owing to many changes in government policies, increased

number of projects, KTPP act, e-portal procedures and increased

number of spares due to technological changes made to modify

the entire IIMS package to suit to present day conditions without

deviating the KPCL’s administrative procedures in vogue

modified IIMS to suit the requirement of RTPS and BTPS with

the following major features and implemented:

i. standardized the procedure/functions/ activities performed

on inventory management.

ii. defined the responsibilities / accountability.

iii. increased the speed of processing of purchase of materials.

iv. introduced “Material Requirement Planning”.

v. To move towards paperless transaction in inventory

management

c) Cash & Compilation Management System

Implemented the CCMS package at GTPS and KPCL-Bidadi

offices.

d) Salary & Pension

e) Provident Fund

f) Generation Management System

g) Bank Guarantee Management System

h) Human Resource Information System

i) Disciplinary Proceedings System

j) In-house Training System

k) Fixed Asset Management System (Development outsourced and

maintenance in-house)

l) Hospital Management System

m) Projects Generation Monitoring System

n) Stores Accounting System(RTPS)

o) Plant Monitoring System(RTPS)

p) Inward and outward

q) Schedule of Rates (Civil works completed, Electrical works under

development)

r) On-line submission of applications for recruitment of Engineers

s) Website

4. Other software:

AutoCAD, STAAD, Adobe software and e-tab are being used extensively at

Design offices. Oracle 9i/11g database, Oracle 10g Application server, Oracle

Forms 6i and Reports 6i are used for application software.

27

5. E-procurement:

Government of Karnataka e-procurement portal is being used for procurement

of goods and services as per the transparency act at corporate office and

projects as per KTTP Act.

XXXXIIII CCoorrppoorraattee CCoommmmuunniiccaattiioonnss

� Various publications have been brought out

� Media Relations: Maintaining goods rapport with print & Electronic media,

news papers have published good articles on KPCL progress

� House magazine “Shakthivahini” being published regularly to maintain

internal relations, communication and motivating the hidden talent s of

employees

� Organized various meetings, functions and seminars, brainstorm session

� Corporate film & laser show on KPCL were produced and screened during

the annual day and other occasions and was attracted by the public. And

Annual Report, Corporate Brochure and occasional brochures were also

published

� Corporate image building in news paper and magazines released on

important occasions.

� Develops relevant literature and documents of the company

� Enhance the image of KPCL through various sponsorship and financial

assistance to educational institutions, associations, hospitals, district

festivals, sports personnel, and blind associations/orphanages at community

service measures

� Constant upgrading the image of the company and maintain cordial

relations with opinion makers and pressure groups etc.

XXXXIIIIII IImmppoorrttaanntt EEvveennttss

03.04.2012 Maximum hydro generation of 60.16 mu per day

21.06.2012 Cheque for `10 crore handed over to the Hon,ble Chief

Minister being the Contribution to the Chief Ministers

Relief Fund at the Board of Directors Meeting.

22.06.2012 Dr. B R Ambedkar Jayanthi celebrated at Bangalore

25.06.2012 5 MW Solar PV Plant at Shivasamudram

commissioned at Belakavadi, Mandya District.

20.07.2012 KPCL 43rd

Foundation Day Celebration held at

Jnanajyothi Auditorium, Bangalore

25.07.2012 Appointed Sri Jagadish Shettar, Hon’ble Chief

Minister, as Chairman of the Corporation.

15.08.2012 66th

Independence Day celebrated at KPCL H.O.

Bangalore

Aug 2012 BTPS 2nd

Unit synchronised by using coal

02.09.2012 Kumari Shobha Karandlaje, Hon’ble Energy Minister,

GoK and Vice Chairperson, KPCL dedicated to the

Nation the 3 MW Solar PV Plant at Yapaladinni,

Raichur District

28

15.09.2012 Birth anniversary of Sir M Visveswarayya celebrated,

Kumari Shobha Karandlaje, Hon’ble Energy Minister,

GoK and Vice Chairperson, KPCL addressed the

gathering

30.10.2012 KPCL pay scale revision negotiation meeting was held

in the presence of Labour Commissioner with KPCL

management and Employees Unions.

07.11.2012 As per GoK order No. EN 72 PPC 2012 dated 27th

August 2012 Karnataka State Coal Mining Company

Limited incorporated as a Joint Venture company of

M/s KPCL & M/s MML

19.11.2012 Parliamentary Committee of Bavria State of Germany

visited KPCL

26.11.2012 Boiler works of BTPS Unit 3 (1x700 MW)

commenced

28.11.2012 Construction works of 2nd

Unit of Yermarus project

(2x800MW) commenced

16.01.2013 Extraordinary General Meeting of shareholders

21.01.2013 Maximum daily generation of 22.414 mu generated

from BTPS units

23.01.2013 Financial Closure between KPCL and Rural

Electrification Corporation for funding the works of

BTPS Unit 3

26.01.2013 64th

Republic Day celebrated at all projects and at the

R.O.

05.02.2013 Shri Supreeth Bhattacharya, IAS, Managing Director -

M/s Singareni Colleries held discussions with MD-

KPCL regarding coal supplies

18.02.2013 Discussions held regarding supply of gas to Bidadi

combined cycle project in the presence of Sri

Veerappa Moily, Hon’ble Minister for Petrolium and

Natural Gas, GoI, and the officials from GAIL

18.02.2013 2nd

Unit of Bellary Thermal Power Station started

commercial operation

23.02.2013 KPCL Annual Report of 2012 bagged Silver Award

from Public Relations Council of India

13.05.2013 Shri Siddaramaiah, Hon,ble Chief Minister, GoK

appointed Chairman of KPCL

22.06.2013 Dr. B.R. Ambedkar Jayanthi celebrated at Bangalore

20.07.2013 KPCL 44th

Foundation Day celebration celebrated at

Chowdaiah Memorial Hall, Vaiyalikaval, Bangalore

29

XXXXIIVV DDiirreeccttoorrss’’ RReessppoonnssiibbiilliittyy SSttaatteemmeenntt

Pursuant to Section 217(2)(AA) of the Companies Act 1956, the Directors

wish to state that to the best of their knowledge:

i) in the preparation of the annual accounts for the year ending 31st March

2013, the applicable accounting standards have been followed along

with proper explanation relating to material departures;

ii) accounting policies have been selected and applied consistently and

made judgments and estimates that are reasonable and prudent so as to

give a true and fair view of the state of affairs of the company at the end

of the financial year and of the profit or loss of the corporation for the

period under review;

iii) proper and sufficient care has been taken for the maintenance of

adequate accounting records in accordance with the provisions of the

Companies Act 1956 for safeguarding the assets of the company and for

preventing and detecting fraud and other irregularities; and

iv) Annual Accounts for the year 2012-13 have been prepared on a going

concern basis.

XXXXVV GGeenneerraall

The Board would like to place on record its appreciation of the following:

� Government of India, Government of Karnataka, the Comptroller &

Auditor General of India and other agencies such as CEA, CWC,

Registrar of Companies, KERC, Statutory Auditors and Cost Auditors

for their assistance, guidance and cooperation;

� Commercial Banks such as State Bank of India, Canara Bank,

Syndicate Bank, State Bank of Mysore, Vijaya Bank, Union Bank of

India, ICICI Bank, IDBI Bank, Bank of Baroda, Punjab National Bank,

Indian Overseas Bank, Central Bank of India, Federal Bank, Allahabad

Bank, Bank of India, ING-Vysya Bank, State Bank of Patiala, State

Bank of Travancore, Andhra Bank, Corporation Bank, State Bank of

Hyderabad, UCO Bank, United Bank of India, Indian Bank, Dena

Bank, State Bank of Bikaner & Jaipur, South Indian Bank, Oriental

Bank of Commerce, Karnataka Bank, Jammu & Kashmir Bank,

Lakshmi Vilas Bank, Karnataka State Co-operative Apex Bank, The

Dhanalakshmi Bank, Kotak Mahindra Bank, Punjab & Sind Bank,

Karur Vysya Bank, Development Credit Bank, Bank of Maharastra,

and financing agencies such as LIC, PFC, REC, IDFC, SIDBI,

HUDCO, SAIL, ICICI Home Finance, HDFC for their financial

support;

� KPTCL, ESCOMS, PCKL, SLDC, RLDC and Electrical Inspectorate

for their co-operation;

� General public, for supporting the activities of the company;

30

� Employees’ Unions and Associations, for their collective participation;

� Media – both electronic & print media for their efforts in spreading the

awareness amongst the stake holders.

The Board would also like to place on record its appreciation of the

dedicated services rendered by the employees of the Corporation.

for & on behalf of the Board of Directors

(Siddaramaiah)

Chairman

Bangalore

Dated: 26.08.2013

31

((DDiisscclloossuurree ooff ppaarrttiiccuullaarrss iinn tthhee rreeppoorrtt ooff DDiirreeccttoorrss)) RRuulleess 11998888

FFOORRMM –– BB

1) Research and Development (R & D)

A) Innovative activities: a. Testing of transformer oil for condition monitoring in all the KPCL project sites has

been done by utilizing mobile testing facility of CPRI, Bangalore.

b. Transformer oil regeneration plant is being utilized to increase the life of the

transformer oil and transformer.

c. Replacement of numerical relays in Sharavathy and Nagjhari power houses as a part

of renovation and Modernization works.

d. Remote control of Mani Dam Power House from Varahi Under Ground Power House

done.

e. Special protection scheme for depleted network in respect of SGS/NPH and VUGPH

is being adopted for grid stability.

f. 400KV shunt reactors are being provided for station bus at RTPS as per CEA

directions to curtail high voltage of the system during off peak hours.

g. Protection Audit for the all stations done as desired by CEA to ensure grid security.

h. In all the power houses and colonies/project areas of the corporation incandescent

bulbs have been phased out and are replaced with energy efficient compact

fluorescent lights as a measure for energy savings. Also, wherever possible

retrofitting of existing tube light fittings are being replaced with T5 and T8 version of

fluorescent tubes with electronic ballast.

i. Stress analysis of wye piece of VHEP is being done by M/s CWPRS, Pune for

assessing the performance and healthiness of the structure.

B) R, M and U and R and M of Hydel Stations:

a. The corporation has taken up R and D activities i.e., R, M and U of existing

generating units through improvements and also to adopt new technology for

higher efficiencies in operation and maintenance of plants.

b. Renovation and modernization of existing plants is being completed on a

phased manner.

c. New construction techniques are being adopted for speeding up constructing of

ongoing and new power projects.

d. KPCL intends to provide power supply to its project colonies directly from

respective generating stations as per KERC guidelines, by installation of

additional infrastructure, there by cost saving and reliability of power supply

will be achieved to KPCL colonies, since ESCOMs are charging commercial

rate tariff for the power consumption of KPCL colonies. In this regard, works

in respect of Shaktinagar colony, Gerusoppa colony and kadra Colony

completed. It is progress at Ambikanagar Colony. NIT issued for Sharavathy

Complex.

e. R, M and U of five units NPH has been completed. Installed capacity has been

increased from 810MW to 885MW. R, M & U U#6 has been taken from

December 2012 and is in progress. It will add another 15MW capacity to grid.

f. The R and M works of 2X12MW capacity river bed units of Bhadra

hydroelectric project has been taken up and almost all the components of the

unit except generator portion are being refurbished/replaced with the

equipment of latest technology for providing efficient operation.

32

C) R, M and U and R and M of Thermal Stations:

a. Keeping MDBEP in the idle conditions / standby mode by achieving the

required permissive of casing temperature

b. Stopping hot well make up pump / selecting it on ‘Group selection mode

thereby double pumping has been avoided.

c. During cold start ups boiler drum filling through CEP, during non-availability

of MDBEP is explored & carried out thus saving aux. consumption.

d. Layout modification of ACV’s of TDBFPs for running the unit through PRDS

and CRH at low load & also enabling the unit start up and synchronization

during the non-availability of MDBFP.

e. During unit overhauling air compressor operation is enabled by

interconnection of DMCW SG/TG system.

f. Modification of LPBP operational scheme to avoid repeated boiler tripping on

re-heater protection during turbine trips.

g. Excavator movement enabled around WT grizzly area for accumulated coal

removal during monsoon thus reducing manpower & demurrage charges.

h. Modification of ‘S’ bend chutes in JNT 2 & diamond chutes in crusher house

to avoid frequent chute chockages.

i. Explored & implemented alternative routes through PLC logic for coal

transportation & thus reducing demurrages & avoiding no coal trips.

Routes available

Before modification

Single routes

After modification

parallel routes

Stacking route WT – 1 to ABCD bunkers

WT – 2 to EFG bunkers

Reclaiming route WT – 1 to ABCD bunkers

WT – 2 to Stacking

By pass route WT – 1 to ABCD bunkers

SCR reclaiming to EFG

ERH WT - 1 to ABCD bunkers

ERH to EFG bunkers

SCR to ABCD

ERH to EFG

WT - 1 to ABCD bunkers

WT – 2 to EFG + SCR

WT - 1 to ABCD

WT – 2 to Stacking

ERH to EFG bunkers

j. 1.8 m ht. RCC wall constructed above pavement level around coat stack yard

preventing spreading of coal thereby avoiding environmental pollution.

k. DMCW make up valve opening & closing logic based on level switch input is

modified to input taken from level transmitter for reliability.

33

l. Installed Reydisp Evolution Software in Rho3 motor protection relays for HT

motors and used to analyze & diagonise the faults in motors and vacuum

contactors.

m. Interconnection of Maralihalla & RWP pipeline & fore bay make up of uni 1

& 2 by gravity flow arrangement is made hence minimizing auxiliary

consumption and more reliability in O&M of unit-1 & 2 activities.

n. On line weather monitoring – weather station equipment/ installed for

observing continuous weather status such as wind direction, humidity,

temperature, rainfall and other environmental issues.

o. 2 no. additional bottom ash hopper disposal lines for each clinkers grinder

established for clearing bottom ash from individual hoppers.

p. Unit 1-Lifting beam provision with necessary hooking arrangement with

suitable stand and maintaining almost equal sizes of fine screen is provided for

easy maintenance & to overcome operational problem in lifting & lowering of

screens during maintenance operations.

q. Unit 2-Pyramid type north light structures erected at (power house roof top) in

place of doom shape north light structures to avoid water leakages.

r. Earlier, the raw water pond with a capacity of 0.52 TMC was proposed only

for two units. Raw water pond constructed with a minimum area of 112 ha for

housing 0.52 TMC of water capacity by increasing the depth of embankment.

s. Construction of 1200 quarters / non-residential buildings is under progress

within the premises of plant itself.

t. Mills trip on loss of primary air is taken from pressure switches, the same has

been modified and trip contacts taken from 2/3 contacts of pressure

transmitters for more reliability.

u. Auto opening of vacuum breaker logic modified to avoid unnecessary

reduction in vacuum during turbine trip.

D) New projects:

KPCL is implementing the following new projects

i. 1x10MW additional generating unit at Munirabad power house. Work has

been awarded and site has been handed over to contractor for implementation.

Works are in progress at site. Model test report approved. Detailed engineering

is in progress.

ii. 2x10MW additional Generating units at Ghataprabha right bank canal power

house has been allotted to KPCL by GoK. ICB notification has been issued for

implementation of the project.

E) Proposed Projects:

i. Run off river scheme at Cauvery right branch near Shivasamudram comprising

of an underground power house of 3X100MW capacity followed by a surface

power house of 3X15MW capacity has been envisaged and DPR submitted to

CEA.

ii. DPR for 1x200MW Gundia HEP has been approved by CEA. It is proposed to

be taken up after clearance from MOEF.

34

F) New proposals:

i. Matrix turbines are being envisaged for augmentation of generation in

Chakra/Savehaklu diversion scheme.

G) Benefits derived as a result of above R and D are as follows:

R, M and U of existing generating units will result in capacity addition at lower capital

investments and also result in reducing the failure rate of generating units.

2. Energy Conservation, Technology absorption, Adaptation and

Innovation:

a) Reduction in Auxiliary consumption and improvement in heat rate is being constantly

given priority.

b) Energy audit has been taken up at RTPS by CII (Confederation of Indian Industries,

Hyderabad). Preliminary reports have been submitted on various issues for energy

savings, PLF improvement, auxiliary consumption reduction etc. Implementation

based on the above report is under process.

c) Maximum utilisation of fly ash has been given top priority.

Highlights of Generation during the year:

a. Maximum hydro generation of 60.16mu per day done on 3.4.2012.

b. Maximum generation of 22.414mu (93.4%PLF) per day done at BTPS

on 21.1.2013.

c. COD declared for BTPS Unit-2 with effect from 18.2.2013.

3. Foreign Exchange:

a) Foreign exchange earnings - Nil

b) Foreign exchange outgo:

i) Components and spare parts - `4.59 crores

ii) Delegate fees - `0.11 crores

Total: - `4.70 crores

******

35

KKaarrnnaattaakkaa PPoowweerr CCoorrppoorraattiioonn LLiimmiitteedd

SSttaatteemmeenntt PPuurrssuuaanntt ttoo SSeeccttiioonn 221122 ooff tthhee CCoommppaanniieess AAcctt,, 11995566,, rreellaattiinngg ttoo

SSuubbssiiddiiaarryy CCoommppaannyy

1 Name of the Subsidiary … KPC Bidadi Power Corpn. Pvt. Ltd.

2 Financial year ended … March 31, 2013

3 Holding company’s interest … 100% equity

4 No. of shares held … 1,40,50,000 equity shares of `10/- each

fully paid up.

5 The net aggregate of profits or losses for the current financial year of the subsidiary

so far as it concerns the members of the holding company –

a) Dealt with or provided for in the accounts of the holding company: nil

b) Not dealt with or provided for in the accounts of the holding company: nil

6 The net aggregate of profits or losses for previous financial year of the subsidiary so

far as it concerns the members of the holding company



7 Statement Pursuant to Section 212(5) of the Companies Act, 1956, relating to

Subsidiary Company

a) There has been no change in the holding company’s interest in the subsidiary

between the end of the financial year of the subsidiary and that of the holding

company.

b) There has been no material change which has occurred in respect of the following

in the case of the subsidiary between the end of the financial year of the

subsidiary and that of the holding company:

i) Fixed assets of the subsidiary

ii) Investments of the subsidiary

iii) Moneys lent by the subsidiary

iv) Moneys borrowed by the subsidiary for any purpose other than that of

meeting current liabilities.

sd/- sd/- sd/-

R Balasubramanian R Nagaraja MR Kamble

GM(CA)& Comp. Secretary Finance Director Managing Director

36




1 Name of the Subsidiary … Karnataka EMTA Collieries Ltd.



4 No. of shares held … 25,500 equity shares of `10/- each

fully paid up



a) Dealt with or provided for in the accounts of the holding company … nil

b) Not dealt with or provided for in the accounts of the holding company.. nil



a) Dealt with or provided for in the accounts of the holding company … nil

b) Not dealt with or provided for in the accounts of the holding company .nil


Subsidiary Company

a) There has been no change in the holding company’s interest in the subsidiary

between the end of the financial year of the subsidiary and that of the holding

company.

b) There has been no material change which has occurred in respect of the following

in the case of the subsidiary between the end of the financial year of the







sd/- sd/- sd/-


GM(CA) & Comp. Secretary Finance Director Managing Director

37




1 Name of the Subsidiary … Karnataka State Coal Mining Company Ltd.



4 No. of shares held … 49,400 equity shares of `10/- each

fully paid up










Subsidiary Company

a) There has been no change in the holding company’s interest in the

subsidiary between the end of the financial year of the subsidiary and that of the

holding company.

b) There has been no material change which has occurred in respect of the

following in the case of the subsidiary between the end of the financial year of the







sd/- sd/- sd/-


GM(CA)& Comp. Secretary Finance Director Managing Director

director's report 2012-13 - final

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