SEMINAR ON

NATIONAL THERMAL POWER CORPORATION

SUBMITTED BY

Vivek kumar bhardwaj

NTPC, India’s largest power company was setup in 1975 to accelerate power development in India. It is emerging as an INTEGRATED POWER MAJOR with a significant presence in the entire value chain of power generation business. NTPC ranked 337th in 2012 FORBES GLOBAL 2000 ranking of the world ‘s biggest companies. With a current generating capacity of 14184 MW NTPC plans to become a 128000 MW company by 2032.

ABOUT NTPC

COMPANY IN BRIEFTYPE:Govt. owned public

enterprise

FOUNDED:

1975

INDUSTRY:Power

generation / distribution

EMPLOYEES:

26,000(JUNE 2013)

CURRENT SHARE:

142.20(NSE)

Manpower Profile

30%

64%

6%

executive workman supervisor

Source:- en.wikipedia.org/wiki/ NTPC_Limited

VISION AND MISSION

VISION To be the world’s largest and best power

producer, powering India’s growth.

CONT’D MISSION “ Develop and provide reliable power,

related products and services and competitive prices, integrating multiple energy sources with innovative and eco friendly technologies and contribute to society.”

National Thermal PowerCorporation

We Believe in………

Team Work Embracing Challenges ‘Can Do’ Spirit Continuous Learning Strong Commitment

NTPC contributes more than one-forth of India’s total power generation with less than one-fifth capacity

rest of india85%

NTPc15%

NTPC 28,840 MWALL INDIA 15,93,987 MW

THERE ARE 4 TYPES OF MARKETS

1. MONOPOLY

2. PERFECT COMPETITION

3. OLIGOPOLY

4. MONOPOLISTIC COMPETITION

MARKET STRUCTURE

CONT’DMarket structu

re

Examples No. of

producers

Type of products

Barriers to

entry

Power of firm over

price

Perfect compet

ition

Parts ofagriculture

arereasonably

close

Many

Standardized Low None

monopolistic

Retail trade Many

Differentiated Low Some

oligopoly

oil,steel, power

Few Differentiated or

Standardized

High Some

monopoly

Public utilities

One Unique product Very high

considerable

NTPC HAS AN OLIGOPOLY MARKET.

IT HAS HIGH BARRIERS OF ENTRY FROM THE GOVERNMENT.PRODUCERS OF POWER ARE VERY FEW(GAIL,BHEL) SO NTPC HAS AN OLIGOPOLY MARKET.

CONT’D

CONSUMPTION OF POWER IN INDIA

INDUSTRY39%

AGRICULTURAL19%

DOMESTIC24%

COM-MERCIAL

18%

June 2012

Source:-Enerdata Statistical Review 2012

COST PRINCIPLES

The costs associated with participating in a market, and supporting buying and selling. Administering low-fee payouts from

rights pools (ASCAP). Subscription management and

fulfillment. Accounting associated with fee

collections. Expenditures Fixed cost

MAJOR COST COMPONENTS :-1. MATERIALS:-

cost of the raw materials used in the product.

2. LABOUR:-

The cost in employed workers to manufacture the product.

3. TRANSPORTATION:-

The cost associated with transportation of the materials.

(CONT’D) COST PRINCIPLES

(cont’d) EXPENDITUREparticulars 2012 2011

Fuel 137235 122150

Employees remuneration & benefits

8835 8835

Generation, administration & other expanses

12096 9813

Depreciation 19584 20232

Provision 75 5835

Interest 5830 6636

Finance charges 11125 27061

Total 194780 200562

(RS. MILLION)

Source:- www.ntpc.co.in/index.php?option=com_content&view=article..

“THE COSTS OF DOING BUSINESS.” 1. SALARIES

2. INFRASTRUCTURE (LIKE FACTORIES AND PARKING LOTS)

3. OPERATIONS (HEATING AND LIGHTING THE FACTORY, PLOWING THE LOT)

4. INSURANCE

5. EQUIPMENT

(cont’d) FIXED COST

PRICING PRACTICES

PRICING

There are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns.

CONT’DNTPC electricity pricing (sometimes referred to as electricity tariff or the price of electricity) within a particular state.For Maharashtra-Domestic light:- from Rs. 0.66 to Rs.6.85 according to consumption slabs i.e. Min to above 500 KWHCommercial lighting:- from Rs. 4.20 to Rs. 8.10 according to load from 0.20 Kw to 50Kw.Agricultural:-From Rs. 237 to Rs. 267 per Kw/per month.( Subsidized rates)Industrial:- Rs. 3.5 to Rs. 4.75

DEMAND AND SUPPLY POSITION IN INDIA

YEAR REQUIRMENT(MEGA UNITS)

AVAILABILITY(MEGA UNITS)

DEFICIT(MU)

%

2007-08 737,052 664,660 -72,392 -9.80%

2008-09 777,039 691,038 -86,001 -11.10%

2009-10 830,594 746,644 -83,950 -10.10%

2010-11 861,591 788,355 -73,236 -8.50%

2011-12 937,199 857,886 -79,313 -8.50%

Source:- http://www.indiastat.com/power/26/consumptionandsale

TABLE SHOWS THAT IN YEAR 2008-10 WAS SIGNIFICANTLY MARKED BY HUGE POWER STORAGE WHERE THE ANTICIPATED DEFICIT WAS 11.1% TO 10.1% RESPECTIVELY. HOWEVER, AS PER LAST TWO YEAR THE DEFICIT PERCENTAGE WAS FOUND TO BE 8.5% .

(CONT’D) DEMAND & SUPPLY

LATEST TRENDS IN THE INDUSTRY

Installed Capacity

1990 1995 2000 2005 2008 2012 20170

10000

20000

30000

40000

50000

60000

70000

80000

Series 1

15625

2

75000

1929124249

5100051000

7500075000

UNIT IN MW

9915

29349

 THE COUNTRY'S LARGEST POWER GENERATOR NTPC HAS CHALKED OUT AMBITIOUS PLANS OF TAKING ITS CAPACITY TO OVER 1,28,000 MW BY 2032.

"NTPC IS CURRENTLY WORKING ON MANY NEW PROJECTS FOR RAPID CAPACITY ADDITION AND PLANS TO BECOME 1,28,000 MW PLUS COMPANY BY 2032,"

FUTURE OUTLOOK

Source:- 37th ANNUAL GENERAL MEETING (Arup Roy Choudhury) Chairman and Managing Director