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Welcome to

Group

Presentation

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HPL Group – At a glance

HPL Group established in 1956 with product range as: • LT Switchgear & Electrical protection devices• Electronic Energy Meters,• Lighting & Luminaries and• Wire & Cable.

A Multiproduct Company having :

•Total Turnover INR 1000 Crores

•9 Manufacturing Units

• 69 branch offices in India

• 1200 Authorized Dealers

• 5400 Workforce

• 15000 Retailers

• Experience in RGGVY, Substation design & Energy

Efficiency Projects like BLY & ESCO.

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BLY Process - overview

Pre – Project Implementation Post– Project Implementation (One Time) (Repeated): FY-1 FY-

2….FY- 8SSC-CPA –DD

Preparation

Consistency check by BEE

Project Monitoring

CPA registration

Project verification & Registration

CFL distribution

Issuance of Carbon Credit - (FY-1)

1

2

4

7

8

9

Repeated for next Verification Cycle

Consistency check by DOE

5

3

Project Verification

6

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• HPL – BLY Projects in hand• BESCOM – 2 Circles -7 Divisions

- Already under implementation

- Validation and Inclusion of PDDs in final stages with DOE

- CFL Distribution started

• Goa Electricity Board – 2 Blocks

- Already under implementation

- PDDs submitted with DOE for validation

- Site verification by DOE by March end.

• CESCOM – Mysore Circle

- In planning stage – Agreements signing in process

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• HPL – BLY Projects in pipeline

• Indore - qualified in the bid and LOI in process.

• CESCOM – 4 Circles - Bid submitted and likely to get repeat LOI on the basis of Mysore

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BESCOM

• Total Households – 16 Lac (appx.)

• Average No. ICL per H/H – 2.5

• Divisions – 7 Nos.

• Total ICL to be replaced @ 2.5 per H/H – 40 Lac (appx.)

• Estimated approximate cost of implementation – INR 70 Cr.

• HPL Source of funding – Own resources

• Revenue returns – Only through CER in 8 years.

• Expected breakeven – in 5 years at present value of CER

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BESCOM - Consumer Spread

• BESCOM – Rural and Urban

- Divided into divisions

- Further divided into subdivisions

- Further divided into sections

• Rural – subdivisions are Talukas

- 24 Talukas in both circles (BRC & Kolar)

- each Talukas has13-20 Gram Panchayats

- Each Gram Panchayat has 5-8 villages.

- Each village has 300-500 houses

• Urban subdivisions are townships having at least 30,000 population.

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BESCOM

• Team of 1000 persons in field.

• 1 supervisor every 10 teams.

• One big warehouse of 5000 sq. feet area feeding substores.

• 7 Substores (one in each division) for buffer stock.

• Centralized data entry and record keeping.

• 28 Vans and two small trucks for material transport.

• Per day 15000 H/H targetted- Gradual scaling up from 5000.

• Distribution/Installation to be complete in 4-5 months starting from March.

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HPL - team Organization Chart for Distribution

PROJECT HEAD – 1 No. (For each SSC-CPA)

SUPERVISOR - 1 SUPERVISOR - 2 SUPERVISOR - n STORE INCHARGE

DATA ENTRY ACCOUNT

Team 1 Team 2Team 3...Team “n”(Each team will be 1 or gang of two as required)

Team 1 Team 2Team 3...Team “n”(Each team will be 1 or gang of two as required)

Team 1 Team 2Team 3...Team “n”(Each team will be 1 or gang of two as required)

Sub-Contractors

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BLY CHALLENGES AS A PROJECT IMPLEMENTER

• Finance – HPL is self financing BLY projects

implementer should have financial sustainability to meet:- All costs involved upfront- Stay there for 10 years (Project life)- Rising cost of money (interest rate)

• CFL – this is central to the success of project.CFL should have-High quality- ability to perform for 8 years-Able to exceed all technical parameters like 10,000 hours, HPF,

lumens, CRI, sustain voltage fluctuations etc.-Whether the implementer is an investor or manufacturer. It is most

important to ensure product (CFL) quality, performance and

longevity. Any average quality product such as Chinese CFL or

component will not sustain the entire period.

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BLY CHALLENGES - AS A PROJECT IMPLEMENTER

• T & D losses – Key factor for calculating CER-not separately identified by DISCOM-not separately published in public domain- derived from annual AT&C losses.

• Installation - by far most challenging aspect- vast spread out field- varied geographical terrain- demographic variation – language- cultural sensitivity- urban / rural set up- variations in education and literacy level- lack of awareness about benefits of scheme- CER liability transfer issues -warranty period replacement-collection / safe disposal of fused CFL (process & cost aspects)- collection & stocking of returned ICL till destruction

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BLY CHALLENGES AS A PROJECT IMPLEMENTER

• PAYBACK & EARNING – UNTREADED PATH

-entire earning is thru sales of CERs

-issuance of CER itself involves huge documentation and

approval

-Qp,j survey – success hinges on minimum CFL failure

rate, minimum pilferage & usage in high usage areas.

- payback comes during first 5 years.

- CER is allocated in a common pool account with BEE –

proper tap to be maintained by investor for transfer of

CER.

- CER market is speculative – difference in spot price &

long term price.

- Kyoto protocol concluding 2012

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Thank You

For further information contact

Mr. Susheem Pandey – DGM Projects

(9810336031)

Mahesh Sharma – Sr. Engineer – Projects (9871190665)