INTRODUCTION

Power or electricity is one of the most critical components of infrastructure affecting

economic growth and well being of nations. The existence and development of adequate
infrastructure is essential for sustained growth of the Indian economy. Infrastructure
investment in India is on the rise, but growth may be constrained without further
improvements.
The power sector provides one of the most important inputs for the development
of a country and availability of reliable and inexpensive power is critical for its
sustainable economic development. To sustain GDP growth rate of around 8-9 per cent, it
is imperative that the power sector also grows at the same rate.
Even after the considerable growth in the power sector infrastructure and the
supply of electricity, many parts of the country continue to face severe power shortages as
consumption by commercial and industrial consumers has been increasing at much faster
rate than electricity supply.
Power is one area of infrastructure where India lags far behind even in comparison
to other developing countries. The per capita annual consumption of electricity in India is
one of the lowest in the world at approximately 734(2008-09) kWh

Electricity sector in India

The electricity sector in India had an installed capacity of 254.649GW as of end
October 2014.India became the world's third largest producer of electricity in the year
2013 with 4.8per cent global share in electricity generation surpassing Japan and
Russia. Captive power plants have an additional 39.375 GW capacity. Non Renewable
Power Plants constitute 87.55per cent of the installed capacity, and Renewable Power
Plants constitute the remaining 12.45per cent of total installed Capacity. India generated
around 967 TWh (967,150.32 GWh) of electricity (excluding electricity generated from
renewable and captive power plants) during the 201314 fiscal. The total annual
generation of electricity from all types of sources was 1102.9 TeraWatt-hours (TWh) in
2013.

SITAMS

Page 1

As of March 2013, the per capita total electricity consumption in India was 917.2
kWh. The per capita average annual domestic electricity consumption in India in 2009
was 96 kWh in rural areas and 288 kWh in urban areas for those with access to electricity
in contrast to the worldwide per capita annual average of 2,600 kWh and 6,200 kWh in
the European Union. Electric energy consumption in agriculture is highest (18per cent) in
India. The per capita electricity consumption is lower compared to many countries despite
cheaper electricity in India.

SITAMS

Page 2

History
The first demonstration of electric light in Calcutta was conducted on 24 th July
1879 by P W Fleury & Co. On 7 th January 1897, Kilburn & Co secured the Calcutta
electric lighting license as agents of the Indian Electric Co, which was registered in
London on 15 January 1897. A month later, the company was renamed the Calcutta
Electric Supply Corporation. The control of the company was transferred from London to
Calcutta only in 1970. Enthused by the success of electricity in Calcutta, power was
thereafter introduced in Bombay. Mumbai saw electric lighting demonstration for the first
time in 1882 at Crawford Market, and Bombay Electric Supply & Tramways Company
(BEST) set up a generating station in 1905 to provide electricity for the tramway. The
first hydroelectric installation in India was installed near a tea estate at Sidrapong for the
Darjeeling Municipality in 1897. The first electric train ran between Bombay's Victoria
Terminus and Kurla along the Harbour Line, in 1925. In 1931, electrification of the metre
gauge track between Madras Beach and Tambar was started.

GENERATION STATISTICS
Power Generation capacity has increased from 1,362 MW in 1947 to 243000 MW mid of
2014. The bellow table represents the total generation of power as on 31, Dec, 2014.
(In MW)
Region

Thermal
Coal

Northern
Western
Southern
Eastern
North-East
Islands
All- India

Gas

Diesel

Nuclear

Hydro

Wind

Grand
Total

Total

35284

5281

13

40578

1620

16331

5730

64259

58019

10139

17

68175

1840

7448

9925

87388

26583

4963

939

32485

1320

11398

13127

58330

25328

190

17

25535

4113

417

30065

60

1209

143

1412

1242

253

2907

70

70

10

80

145273

21782

1200

168255

4780

40532

29462

243029

Demand Trends

SITAMS

Page 3

1.4 billion people of the world who have no access to electricity in the world,
India accounts for over 300 million. The International Energy Agency estimates India will
add between 600 GW to 1,200 GW of additional new power generation capacity before
2050. This added new capacity is equivalent to the 740 GW of total power generation
capacity of European Union (EU-27) in 2005. The technologies and fuel sources India
adopts, as it adds this electricity generation capacity, may make significant impact to
global resource usage and environmental issues.
Some 800 million Indians use traditional fuels fuel wood, agricultural waste
and biomass cakes for cooking and general heating needs. These traditional fuels are
burnt in cook stoves, known as chulah or chulha in some parts of India. Traditional fuel is
inefficient source of energy, its burning releases high levels of smoke, PM10 particulate
matter, NOX, SOX, PAHs, polyaromatics, formaldehyde, carbon monoxide and other air
pollutants. Some reports, including one by the World Health Organisation, claim 300,000
to 400,000 people in India die of indoor air pollution and carbon monoxide poisoning
every year because of biomass burning and use of chullahs. Traditional fuel burning in
conventional cook stoves releases unnecessarily large amounts of pollutants, between 5 to
15 times higher than industrial combustion of coal, thereby affecting outdoor air quality,
haze and smog, chronic health problems, damage to forests, ecosystems and global
climate. Burning of biomass and firewood will not stop, these reports claim, unless
electricity or clean burning fuel and combustion technologies become reliably available
and widely adopted in rural and urban India. The growth of electricity sector in India may
help find a sustainable alternative to traditional fuel burning.
In addition to air pollution problems, a 2007 study finds that discharge of
untreated sewage is single most important cause for pollution of surface and ground water
in India. There is a large gap between generation and treatment of domestic wastewater in
India. The problem is not only that India lacks sufficient treatment capacity but also that
the sewage treatment plants that exist do not operate and are not maintained. Majority of
the government-owned sewage treatment plants remain closed most of the time in part
because of the lack of reliable electricity supply to operate the plants. The wastewater
generated in these areas normally percolates in the soil or evaporates. The uncollected
wastes accumulate in the urban areas causse unhygienic conditions, release heavy metals
and pollutants that leaches to surface and groundwater. Almost all rivers, lakes and water
bodies are severely polluted in India. Water pollution also adversely impacts river,
SITAMS

Page 4

wetland and ocean life. Reliable generation and supply of electricity is essential for
addressing India's water pollution and associated environmental issues.
Other drivers for India's electricity sector are its rapidly growing economy, rising
exports, improving infrastructure and increasing household incomes. In a May 2014
report, India's Central Electricity Authority anticipated, for 201415 fiscal year, a base
load energy deficit and peaking shortage to be 5.1per cent and 2per cent
respectively. India also expects all regions to face energy shortage up to a maximum of
17.4per cent in North Eastern region.

Rural Electrification
In December 2011, over 300 million Indian citizens had no access to frequent
electricity. Over one third of India's rural population lacked electricity, as did 6per cent of
the urban population. Of those who did have access to electricity in India, the supply was
intermittent and unreliable. In 2010, blackouts and power shedding interrupted irrigation
and manufacturing across the country. States such as Gujarat, Madhya Pradesh, etc.
provide continuous power supply.
India's Ministry of Power launched Rajiv Gandhi Grameen Vidyutikaran Yojana
as one of its flagship programme in March 2005 with the objective of electrifying over
one lakh (100,000) un-electrified villages and to provide free electricity connections to
2.34 crore (23.4 million) rural households. This free electricity programme promises
energy access to India's rural areas, but is in part creating problems for India's electricity
sector

ELECTRICITY GENERATION
Power development in India was first started in 1897 in Darjeeling, followed by
commissioning of a hydropower station at Sivasamudram in Karnataka during
1902. Thermal power stations which generates electricity more than 1,000 MW are
referred as Super Thermal Power Stations.
India's electricity generation capacity additions from 1950 to 1985 were very low
when compared to developed nations. Since 1990, India has been one of the fastest
growing markets for new electricity generation capacity. India's electricity generation
capacity has increased from 179 TW-h in 1985 to 1053 TW-h in 2012.
SITAMS

Page 5

India's Power Finance Corporation Limited projects that current and approved
electricity capacity addition projects in India are expected to add about 100 GW of
installed capacity between 2012 and 2017. This growth makes India one of the fastest
growing markets for electricity infrastructure equipment. India's installed capacity growth
rates are still less than those achieved by China, and short of capacity needed to ensure
universal availability of electricity throughout India by 2017.
Major economic and social drivers for India's push for electricity generation
include India's goal to provide universal access, the need to replace current highly
polluting energy sources in use in India with cleaner energy sources, a rapidly growing
economy, increasing household incomes, limited domestic reserves of fossil fuels and the
adverse impact on the environment of rapid development in urban and regional areas.
In 2010, the five largest power companies in India, by installed capacity, in
decreasing order, were the center-owned NTPC,center-owned NHPC, followed by three
privately owned companies: Tata Power, Reliance Power and Adani Power.
In India's effort to add electricity generation capacity over 20092011, both
central government and state government owned power companies have repeatedly failed
to add the capacity targets because of issues with procurement of equipment and poor
project management. Private companies have delivered better results.
Sector-wise All India installed capacity
Sector

Thermal
(inMWs)

Hydel
(inMW)

Nuclear
(inMW)

Renewable
(inMW)

Total
(inMW)

per cent
of total

4,780.00

66,997.94

28.64

Central Govt.

52,500.54

9,717.4

State Govt.

59,627.93

27,482.00

3,726.77

90,836.70

38.83

Private

47,665.52

2,694.00

25,735.78

76,095.30

32.53

Total

SITAMS

159,793.99

39,893.40

4,780

29,462.55

233,929.9
4

100.00

Page 6

SITAMS

Page 7

Types of Energy Generation

1) WIND ENERGY
Wind energy is the one obtained from the wind. It is the kinetic
energy generated by the effect of wind currents or the vibrations
produced by the wind. For centuries, windmills have been used to
grind grains, pump water or to perform other tasks that required
energy. Currently, aero generators are used to generate electricity,
especially in areas exposed to frequent winds, such as coastal
zones, mountainous heights or islands. Wind energy is related
with the movement of air masses displacing in high atmospheric
pressure areas towards low-pressure adjacent areas, with velocities
proportional to the pressure gradient.

2) GEOTHERMAL ENERGY
Geothermal is the energy that can be obtained from seizing upon
the heat of the inner part of the Earth. This heat is due to several
factors among which the geothermal gradient and the radiogenic
heat stand Geothermal energy can be obtained by extracting
Earths inner heat. In areas of very hot shallow thermal waters
drilling is done through natural fractures of basal rocks or inside
sedimentary rocks. Hot water or steam can flow naturally by
pumping or by impulses of water and steam flows. The method to
be chosen depends on which is economically profitable in each
case.

3) HYDRAULIC ENERGY
A hydroelectric power plant is the one used for generating electricity
from the potential energy of water collected in a dam located at a
level higher than that of the power plant. Water is carried through a
discharging pipe to the engine room of the plant, where huge
hydraulic turbines produce electricity in alternators. The two main
characteristics of a hydroelectric power plant from the point of view
of its energy-producing capability are:
Power: This is a function of the difference in level between the
middle level of the reservoir and the middle level of the water below
de power plant, and of the maximum volume of water flow that can
be processed in the turbines, aside from the characteristics of the
turbine and the generator.
Energy: This has to be guaranteed for a specific period of time,
usually one year, and is a function of the reservoirs useful volume,
the annual precipitation and the installed power

SITAMS

Page 8

4) NUCLEAR ENERGY
A nuclear power plant is an industrial facility used for
generating electricity from nuclear energy. It characterizes by the
use of fissionable materials which through nuclear reactions yield
heat. This heat is used by a conventional thermodynamic cycle to
move an alternator and produce electricity. These plants have one
or several reactors which are containers having rods or other
geometric configurations of minerals with some fissile or fertile
element in their interior. This element is usually uranium and in
some combustibles plutonium generated from uranium activation.
In the process of radioactive fission a reaction is established which
is sustained and moderated by the use of auxiliary elements
dependent on the type of technology being used.
5) PHOTOVOLTAIC SOLAR ENERGY
Photovoltaic solar energy produces electric energy from
photovoltaic panels. The photovoltaic panels, modules or
collectors are formed by diode-type semiconductor devices
which upon receiving solar energy get excited and provoke
electronic leaps that generate a small difference in potential in
their ends. The coupling in series of these photodiodes allow
for the obtainment of greater voltages in simple configurations
suitable for feeding small electrical devices. At a greater scale,
the continuous electric current the photovoltaic panels provide
can be transformed into alternate current and injected into an
energy grid.
6) THERMOELECTRIC ENERGY:A thermoelectric power plant is a facility used for generating
electric energy from heat. This heat can be obtained from fossil
fuels (oil, natural gas or coal) as well as from the nuclear fission of
uranium or other nuclear combustible. The plants using fusion in
the future will also be thermoelectric power plants. In their more
classical form, thermoelectric power plants consist of a boiler in
which combustible is burnt to generate heat that is transferred to
some pipes where water circulates and then vaporizes. The highpressure, high-temperature steam obtained expands in a steam
turbine and its movement drives an alternator that generates
electricity. Later the steam is cooled in a condenser where water
from the open flow of a river or from a cooling tower circulates.

SITAMS

Page 9

PROBLEMS FACING BY THE INDUSTRY

The Indian Electricity industry is facing the following problems:
Inadequate power generation capacity;
Lack of optimum utilization of existing generation capacity;
Inadequate inter-regional transmission links;
Inadequate and ageing sub-transmission and distribution network leading to power
cuts and local failures/faults;
Large scale theft and skewed tariff structure;
Slow pace of rural electrification;
Inefficient use of electricity by the end consumer;
Lack of grid discipline;

Major Players
Public Sector Units in Power Sector

SITAMS

Page 10

1) NATIONAL THERMAL POWER CORPORATION ( NTPC )

2) NATIONAL HYDROELECTRIC POWER CORPORATION ( NHPC )
3) NATIONAL POWER CORPORATION OF INDIA ( NPCIL )
4) DAMODAR VALLEY CORPORATION ( DVC )
5) CENTRAL ELECTRICITY GEGULATORY COMMISSION ( CERC )
6) NEYVELI LIGHITE CORPORATION ( NLC )
7) POWER FINANCE CORPORATION ( PFC )

Private Sector Units in Power Sector

1) SUZZLON
2) TATA POWER
3) RELIANCE ENERGY
4) ADANI POWER
5) LANCO INFRATECH
6) TORRENT POWER

PROFILES OF THE SAMPLE COMPANIES

Profile of NTPC

Date of

07-11 1975

Establishment
Revenue

12114.4 ( USD in Millions )

SITAMS

Page 11

Market Cap
Corporate Address

1175803.22344 ( Rs. in Millions )

N T P C Bhawan , Scope Complex,7, Institutional Area, Lodi
Road New Delhi-110003, Delhi

Business Operation
Background

Power Generation/Distribution
NTPC, India's largest power company, was incorporated on
November 7, 1975 to accelerate power development in India.
Today, it has emerged as an Integrated Power Major, with a
significant presence in the entire value chain of power
generation business.
With a current generating capacity of 30,144 MW, NTPC has
embarked on plans to become a 75,000 MW company by 2017.
NTPC is emerging as a diversified power

Financials

Total Income - Rs. 748943 Million

( year ending Mar 2014)
Net Profit - Rs. 109747.4 Million
( year ending Mar 2014)

COMPANY HISTORY NTPC Ltd.

Our Company was incorporated on November 7, 1975 under the Companies Act as a
private limited company under the name "National Thermal Power Corporation Private
Limited", and the word 'Private' was deleted on September30, 1976 consequent upon the
notification issued by the GoI exempting government companies from the use of word
'private'. In their name. On September 30, 1985, our Company was converted from a
private limited company into a public limited company.Subsequently; the name of our
Company was changed to its present name NTPC Limited. and a fresh certificate of
incorporation was issued on October 28, 2005. The name of our Company was changed to
SITAMS

Page 12

reflect the diversification of our business operations beyond thermal power generation to
include, among others, generation of power from hydro, nuclear and renewable energy
sources and undertaking coal mining and oil exploration activities.

MAJOR EVENTS
1975 - Incorporation of our Company.
1978 - Takeover of management of the Badarpur project
1986 - Synchronized first 500MW unit at Singrauli Our Company became one of the first
PSUs to issue bonds in the debt market
1987 - 5,000 MW installed capacity mark crossed
1988 - First syndicated Japanese loan of 30 billion JPY raised 1989 - Consultancy
division of our Company launched First unit (88 MW) of our Companys first gas based
combined cycle power plant at Anta, Rajasthan commissioned
1990 - Total installed capacity of 10,000 MW reached
1992 - First acquisition by our Company of Feroze Gandhi Unchahar Thermal Power
Station (2x210MW) from Uttar Pradesh Rajya Vidyut Utpadan Nigam of Uttar Pradesh
The transmission systems owned by our Company were transferred to Power Grid
Corporation of India Limited (PGCIL) pursuant to legislation by the Parliament of India
2002 - Three wholly owned subsidiaries, viz., NTPC Electric Supply Company Limited,
NTPC Hydro Limited and NTPC Vidyut Vyapar Nigam Limited incorporated ESP.
2003 - Our Company undertook debt re-structuring. Raised funds through bonds (Series
XIII and XIV) Construction of first hydro-electric power project of 800 MW capacity in
Himachal Pradesh commenced after the investment approval
2004 - The award of contract for the first Super Critical Thermal Power Plant at Sipat
Reached a total installed capacity of 22,249 MW with the Talcher Unit V getting
synchronized on May 13.
2005-Company has changed its name from National Thermal Power Corporation Ltd. to
NTPC Ltd.

SITAMS

Page 13

2006 - Badarpur Thermal Power Station having an installed capacity of 705 MW

transferred to our Company
2007 - MoC, GoI granted in-principle approval for allocation of a new coal block, ChattiBariatu (South) to our Company subject to the conditions stipulated in the approval letter.
The share of reserves is estimated to be 354 Million Tonnes
2008 - Company adjudged as the Star PSU - 2008 Board expanded by appointment of
five independent Directors India Power Award conferred on Centre for Power Efficiency
and Environmental Protection
2010- NTPC and EPC firm Larsen and Toubro are among the companies that have shown
interest in partnering Indian Oil Corporation (IOC) in its $750-million LNG import
terminal at Ennore near Chennai.
2011- Joint Venture signed between NTPC Ltd. (NTPC) and Nuclear Power Corporation
of India Ltd. (NPCIL) has been incorporated on January 27, 2011 under the name
'Anushakti Vidhyut Nigam Ltd' (Company). NPCIL shall hold 51per cent of the equity
share capital and NTPC shall hold the balance 49per cent of the equity share capital of the
Company
2012- NTPC signs $1.5bn deal with Bangladeshs PDB to set up 1,320 MW plant
- NTPC - Signs Joint Venture Agreement with Bangladesh Power Development Board
- NTPC - NTPC Ltd signed a loan facility of USD 100 million with Mizuho Corporate
Bank Ltd.

Profile of TATA Power

Date of Establishment

18-09 1919

Revenue

1441.72 ( USD in Millions )

Market Cap

251530.148622 ( Rs. in Millions )

Number of Employees
SITAMS

Page 14

3809(2010)
Corporate Address

Bombay House,24 , Homi Mody Street,Mumbai-

Business Operation
Background

400001, Maharashtra
Power Generation/Distribution
Tata Power, erstwhile known as Tata Electric,
pioneered the generation of electricity in India nine
decades

ago.

The

company

started

as

Tata

Hydroelectric Power Supply Company in 1911, it got

its new status with the amalgamation of two entities
viz, Tata Hydroelectric Power Supply Company and
Andhra Valley Power Supply Company in 1916.
Today, it is the country's largest private power utility,
Financials

established a
Total Income - Rs. 92861.6 Million

( year ending Mar 2014)

Net Profit - Rs. 9540.8 Million

COMPANY HISTORY-TATA POWER Ltd.

1991- The Company was incorporated on 18th September, at Mumbai. The Company
generates and supplies Electricity. The Tata Hydro-Electric Power System comprises the
Tata Hydro-Electric Power Supply Co., Ltd., the Andhra Valley Power Supply Co. Ltd.,
and the Tata Power Co., Ltd.
1953- 1,500 Right Equity shares issued at par in prop. 2:5.
1955- 15,000 partly paid shares fully called up.
1967- 51,536 right equity shares issued at par (prop. 1:10).
1968- 1, 00,000-9.25per cent pref. shares offered for public subscription
SITAMS

Page 15

1975- 1, 13,379 bonus shares issued in prop. 1.5

1980- The Company set up a new manufacturing facility at Bangalore, for commercial
production of electronic items designed by its R&D lab.

1993- The Company proposed to install 2 x 1.25 MW mini hydro generating units on the
existing Bhivpuri tailrace channel by utilising available tailrace releases from existing
power station.
2003-Tata Power Co, Reliance Energy Ltd poised to acquire Dhabol
2005-Tata Power signs generation pact with DVC on Maithon Project
-Tata Power enters into an agreement for sale of shares in Tata Power Broadband
2008-Tata Power Company Ltd has appointed Dr. R H Patil and Mr. P G Mankad as
Additional Directors of the Company with effect from July 03, 2008.
2009 titled Tata Power signs an MOU with Government of Gujarat to explore setting up
of 5 MW each of Geothermal and solar power plnts
- Tata Power Company Ltd has appointed Mr. A K Basu as an Additional Director of the
Company effective March 26, 2009
2010- Tata Power Company Ltd has said that consortium between the company and
Arrow Energy has been awarded the Satpura Coal Based Methane (CBM) block in the
state of Madhya Pradesh.
- Tata Power - CRISIL assigns 'AA/Positive' rating to Tata Power's Rs. 6 billion nonconvertible debenture programme
- Tata Power's First Clean Development Mechanism registered project - 50.4 MW
Khandke wind farm
2011- Tata Power was bestowed the prestigious "Vasundhara Award" in the industry
category, given out to recognize exemplary work carried out by Industries, Urban Local
Bodies, Schools and Environmental Non Governmental Organizations (NGOs) towards
SITAMS

Page 16

protection of environment in the State of Maharashtra by Maharashtra Pollution Control

Board (MPCB).
- Tata Power has won the Best Environmental Performance Power Plant of the Year Gold & Environmental Company of the Year - Bronze awards at the Asian Power Awards
2011 held in Malaysia
- It was announced by the Tata Power Company today that the retail consumer base which
it has in Mumbai has gone over 1 lakh since the past one year.
- Tata Power JV won bid for 236 MW hydropower project
-Company has splits its Face value of Shares from Rs 10 to Rs 1
2012- Tata Power signs a long term coal supply agreement with PT Antang Gunung
Meratus; Indonesia
- Tata Power today acquired a 26 per cent stake in another Indonesian coal miner PT
Baramulti Suksessarana Tbk (BSSR) through its 100 per cent subsidiary Khopoli
Investments Limited with an objective to bolster supplies amid a severe domestic fuel
shortage.

COMPANY HISTORY-SUZLON ENERGY Ltd.

Date of Establishment

10-04 1995

Revenue

511.088 ( USD in Millions )

Market Cap

44624.18922969 ( Rs. in Millions )

SITAMS

Page 17

Corporate Address

Suzlon 5,Shrimali Society,Near Shri Krishna

Complex NavrangpuraAhmedabad-380009, Gujarat

Business Operation
Background

Electric Equipment
Suzlon energy is leader in wind energy in the India,
which is worlds fifth largest wind energy market
.The company, which was established in 1995, now
has global presence in five continents with
manpower of over 13,000 people located in 14
countries. Its business model has range of services
that include development, manufacturing, marketing,
EPC project delivery & operations and maintenance

Financials

Total Income - Rs. 33683.9 Million ( year ending

Mar 2014)
Net Profit - Rs. -9244.7 Million ( year ending
Mar 2014)

Employees

10,000

COMPANY HISTORY-SUZLON ENERGY Ltd.

The Company was incorporated in 1995 by Tulsi Tanti. Tulsi Tanti was primarily
in the textile business and was introduced to wind energy through a wind power project
that he had commissioned for his textile factory. The first subscribers to the Memorandum
were the family members and friends of Tulsi Tanti.
The Company entered into a technical collaboration agreement in 1995 with a
German company, Sudwind GmbH Windkrafttanlagen to source the latest technology for
the production of WTGs in India. Sudwind GmbH Windkrafttanlagen was subsequently
taken over by Sudwind Energiesysteme GmbH ("Sudwind"). The parties entered into a
fresh agreement dated September 30, 1996, under which Sudwind proposed to share
technical knowhow relating to 0.27 MW, 0.30 MW, 0.35 MW, 0.60 MW and 0.75 MW
WTGs in consideration for royalty to be paid on the basis of each WTG sold over the
course of five years from the date of this agreement.
SITAMS

Page 18

2004-Suzlon Energy Ltd signs up MSPL's 3.75 MW Wind Power Project -Suzlon
Energy Ltd opens Representative Office in Beijing -Suzlon Energy Ltd wins Composite
Centre International Export Excellence Award at the International Exposition India
Composites,
2005-Suzlon Energy secures maiden contracts in China & South Korea
2006-Suzlon Energy Ltd - Signed a turbine supply agreement with Edison Mission
-Suzlon gets Rs 620 cr Australian firm project order
2007- Suzlon Energy has issued zero-coupon foreign currency convertible bonds worth
$300 million to fund its organic growth initiatives.
-Suzlon Energy Ltd signed a major new order with ONGC, India's leading Oil & Gas
Exploration & Production (E&P) Company, for 51 MW of wing turbine capacity.
-Suzlon Energy Ltd wins the Best PE/VC Backed Company Award from Venture
Intelligence Apex.
2008- Suzlon Energy Ltd has appointed Mr. Sumant Sinha as Chief Operating Officer
(COO) with effect from August 01, 2008.
- The Company has splits its face value from Rs10/- to Rs2/-.
-Suzlon Energy Ltd enters Kerala with its first Wind Power Project commission of S52600 kW turbine at Agali
-Suzlon Energy Ltd is first S88-2.1 MW wind turbine is commissioned by Deco Light
Ceramics Ltd, in Gujarat, India -Suzlon Energy Ltd Signs up with ONGC Limited - for
51 MW wind turbine capacity
-Suzlon Energy Ltd signs up with Ayen Enerji Co. Inc. - for 31.5 MW of wind turbine
capacit
SITAMS

Page 19

2011- India's Suzlon Energy Ltd said that it had bagged an order worth $1.28 billion from
India unit of Caparo Energy Ltd. Suzlon Energy which is the third-largest wind turbine
manufacturer in the world plans to complete the 1000MW wind energy project by 2013.
- RE power bagged 47 MW wind projects from France based GDF SUEZ group
- RE power inked deal with Swedish Vattenfall for 36 wind turbines
2012- Suzlon Group entered Romanian wind energy market with 25 MW order win, new
subsidiary.
2013-Wind energy major, Suzlon Energy said its subsidiary has secured two new orders
totaling 16.4 MW for supplying wind turbines for a new wind farm at Wear Point,
Pembroke shire and Avon mouth, South West England.
- Suzlon Group inks 50 MW order with Orange Renewable Power
- Suzlon Energy Ltd. - Suzlon Group wins two new UK orders
- Suzlon crosses 1,000 MW in Kutch; developing Indias largest wind park.

COMPANY HISTORY RELIANCE POWER Ltd

Date of Establishment
Revenue
Market Cap
Corporate Address

17-01 1995
15.2906 ( USD in Millions )
168027.0753134 ( Rs. in Millions )
H Block , 1st Floor,Dhirubhai Ambani Knowledge
City, Navi Mumbai-400710, Maharashtra

Business Operation
Background

Power Generation/Distribution
Reliance Power was incorporated as Bawana Power
Private Limited on January 17, 1995, its name
changed to Reliance Delhi Power Private Limited
by a special resolution of the members passed at
the EGM on February 1, 1995. On January 23,

SITAMS

Page 20

2004 the Name got changed to Reliance EGen

Private Limited by a special resolution of the
members passed at the EGM. On March 5, 2004
Financials

the name changed to Relian

Total Income - Rs. 3661.2 Million

( year ending Mar 2014)

Net Profit - Rs. 564.8 Million

IncreaseINR18.92 billion (US$310 million) (2011)

Revenue

Net income

Increase INR7.6 billion (US$120 million)(2011)

COMPANY HISTORY-RELIANCE POWER Ltd.

January 17, 1995 Incorporated as Bawana Power Private Limited
February 1, 1995 Name changed to Reliance Delhi Power Private Limited by a special
resolution of the members passed at the EGM
February 3, 1995 Fresh certificate of incorporation consequent to the change of name was
granted
January 23, 2004 Name changed to Reliance EGen Private Limited by a special resolution
of the members passed at the EGM
February 17, 2004 Fresh certificate of incorporation consequent to the change of name
was granted
March 10, 2004 Fresh certificate of incorporation consequent to the change of name was
granted
March 19, 2004 Name changed to Reliance Energy Generation Limited following the
SITAMS

Page 21

change of status from a private to a public company by a special resolution of the

members passed at the EGM
March 31, 2004 Fresh certificate of incorporation consequent to the change of name
July 7, 2007 Fresh certificate of incorporation consequent to the change of name
2008-Reliance Power will offer 260 million shares through the IPO or 10.1 per cent of the
company's capital. The company aims to raise between Rs 105 billion and 115 billion
($2.6 billion to $2.9 billion) through the offering, which will be open for subscription
from January 15 to January 18, investment bankers said. The shares will be offered in the
Rs 405 to Rs 450 price band.
- Reliance Power Ltd has informed that the Company has appointed Shri. J P Chalasani,
former Whole-time Director (Business Development) of Reliance Energy Ltd as CEO of
the Company.
-The Company has issued Bonus Shares in the Ratio of 3:5.
2010- Export-Import Bank of the US (Ex-Im) gave its preliminary approval to finance
Reliance Power's 4,000-MW project in Sasan, Madhya Pradesh.
- ADAG firm Reliance Power on May 28 acquired 433 MW of power generation assets
from Group company Reliance Infrastructure for Rs 1,095 crore in order to bring the
entire power generation portfolio under one roof.
2011- Madhya Pradesh Government asked Reliance Power to signed PPA latest by July
end.
- Reliance Power - Reliance Powerered 3,960 MW Krishnapatnam Ultra Mega Power
Project
- Reliance Power - Reliance Powerered 4,000 MW Sasan Power Project in Madhya
Pradesh, gets approval for carbon credits
- Anil Ambani's Reliance Power Ltd (RPower) announced its first ever operating revenue
from power generating assets for the year 2010-11 which has pushed up company's profit
by 11 percent to Rs. 760.4 crore.
- Reliance Power project achieved 105per cent generation capacity
- In order to fulfill the power requirement for the upcoming 100 mw solar power project
SITAMS

Page 22

of Reliance Power in Jaisalmer Rajasthan, the company is belived to sign the power
purchase agreement with the state-owned NTPC.
2012- Europe's largest oil company, Royal Dutch Shell has joined hands with India's
Reliance Power (RPower) to jointly develop a liquefied natural gas (LNG) import
terminal off the coast of Kakinada in Andhra Pradesh by 2014.
- Reliance Power signed MoU with Ming Yang Holdings Singapore, a subsidiary of China
Ming Yang Wind Power Group Limited to boost power operations in India, overseas.
- Anil Dhirubhai Ambani-led Reliance Power Ltd said that rating agency ICRA Ltd has
provided the company with a revised rating to (ICRA) A1 for its Rs 1000 crore
commercial paper program.
2013- Reliance Power - Reliance Power started Power Generation from the second unit of
its 600MW Butibori Thermal Power Plant in Maharashtra.

Objectives of the Study

To Study the overall power industry

To Know the major players and sample companies profiles
To Know the profit levels of the company
To found problem and prospectus of industry

Methodology of the Study

The Data collected for this analysis are from Secondary data sources only. Which
are Websites and articles of power sector in India, etc. the few site which referred for this
analysis are:
SITAMS

Page 23

 www.google.com
www.moneycontrol.com
www.ntpc.co.in
www.Tatapower.com
www.suzlon.com
www.reliancepower.co.in

DATA ANALYSIS
Net Operating Profit per Share
YEARS

NTPC

TATA

SUZLON

RELIANCE

2009-10
2010-11
2011-12
2012-13
2013-14

56.25
66.78
75.26
79.65
87.34

299.37
290.82
36.11
40.32
36.35

132.45
100.59
118.62
105.45
82

0.09
3.76
7.2
17.56
18.5

Source: monycontrol.com

SITAMS

Page 24

In the above chart it is observed that the Net operating profit per share of the
sample companies, NTPC is gradually increasing the profit per share year by year in the
sample period i.e. in the year 2009-10 it is 56.25 and it increased to 87.34 in the year
2013-14

Net Profit Margin

YEARS
2009-10
2010-11
2011-12
2012-13
2013-14

NTPC TATA
17.72
15.85
14.22
18.34
14.69

12.88
12.78
12.44
9.95
10.27

SUZLON

RELIANCE

-4.71
-7.27
-2.22
-24.97
-17.25

274.33
55.59
31.32
19.14
18.51

Source: monycontrol.com

SITAMS

Page 25

In the above chart it is observed that the Net profit margin of sample companies.
NTPC, TATA, SUZLON, RELIANCE is gradually decreasing the Net profit margin.
NTPC in the year 2009-10 it is 17.72 and it decreased to 14.69 in the year 2013-14.TATA
in the year 2009-10 it is 12.00 and it decreased to 10.27 in the year 2013 to 14.SUZLON
in the year 2009-10 it is -4.71 and it decreased to -17.25 in the year 2013 -14.RELIANCE
in the year 2009-10 it is 274.33 and it decreased to 18.51

Current Ratio
YEARS NTPC
2009-10
2010-11
2011-12
2012-13
2013-14

2.81
2.13
1.97
1.83
1.69

TATA
2.39
12.78
1.48
1.3
0.97

SUZLON

RELIANCE

0.7
1.16
0.84
1.16
0.7

0.47
1.94
1.35
1.08
0.86

Source: monycontrol.com

SITAMS

Page 26

In the above chart it is observed that the current Ratio of sample companies. NTPC,
TATA, RELIANCE. Is gradually decreasing the current ratio year by year in the sample
period i.e. NTPC in the year 2009-10 it is 2.81 and it decreased to 1.69 in the year 201314.TATA in the year 2009-10 it is 2.39 and it decreased to 0.97 in the year 201314.RELIANCE in the year 2009-10 it is 0.47 and it decreased to 0.86 in the year 2013-14.
While coming to SUZLON there is no change

Debt Equity Ratio

YEARS NTPC TATA
2009-10
2010-11
2011-12
2012-13
2013-14

0.59
0.63
0.65
0.66
0.73

0.57
0.63
0.78
0.91
0.78

SUZLON RELIANCE
1.92
1.74
2.2
42.75
0

0.15
0.44
0.83
1.44
1.42

Source: monycontrol.com

SITAMS

Page 27

In the above chart it is observed that the debt equity ratio of the sample companies.
NTPC, TATA, RELIANCE. IS gradually increasing the debt equity ratio year by year in
the sample period i.e. NTPC in the year 2009-10 it is 0.59 and it increased to 0.73 in the
year 2013-14. TATA in the year 2009-10 it is 0.57 and it increased to 0.78 in the year
2013-14. RELIANCE in the year 2009-10 it is 0.15 and it increased to 1.42 in the year
2013 to 14. While coming to SUZLON in 2009-10 it is 1.92 and it decreased to 0.

Inventory Turnover Ratio

YEARS

NTPC

TATA

SUZLON

RELIANCE

2009-10
2010-11
2011-12
2012-13
2013-14

27.54
29.18
16.87
16.32
13.4

18.98
17.79
14.5
12.57
12.14

3.34
3.38
3.83
3.59
5.06

0.8
40.66
12.57
9.2
8.31

Source: monycontrol.com

SITAMS

Page 28

In the above chart it is observed that the inventory turnover over ratio of the sample
companies. NTPC and TATA is gradually decreasing year by year in the sample period
i.e. NTPC in the year 2009-10 it is 27.54 and it decreased to 13.4 in the year 201314.TATA in the year 2009-10 it is 18.98 and it decreased to 12.14 in the year 2013-14.
While coming to SUZLON and RELIANCE it is gradually increasing year by year
SUZLON in the year 2009-10 it is 3.34 and it increased to 5.06 in the year 2013-14.
RELIANCE has a great growth in the year 2010-11 at 40.66 while coming to the year
2013-14 NTPC occupied its place.

Fixed Assets Turnover Ratio

YEARS

NTPC

2009-10
2010-11
2011-12
2012-13
2013-14

0.7
0.76
0.76
0.64
0.62

TATA
0.71
0.66
0.69
0.71
0.58

SUZLON
4.26
3.32
3.52
3.05
3.17

RELIANCE
0.01
0.27
0.31
0.51
0.34

Source: monycontrol.com

SITAMS

Page 29

In the above chart it is observed that the fixed assets turnover ratio of the sample
companies. NTPC and RELIANCE is gradually increasing the fixed assets turnover ratio
year by year in the sample period i.e. NTPC in the year 2009-10 it is 0.7 and it increased
to 0.62 in the year 2013-14. RELIANCE in the year 2009-10 it is 0.01 and it increased to
0.34 in the year 2013-14. While coming to TATA and SUZLON is gradually decreasing
year by year in the sample period TATA in the year 2009-10 it is 0.71 and it decreased to
0.58 in the year 2013-14 and SUZLON in the year 2009-10 it is 4.26 and it decreased to
3.17 in the year 2013-14

Assets Turnover Ratio

SITAMS

YEARS

NTPC

TATA

SUZLON

RELIANCE

2009-10
2010-11
2011-12

0.48
0.53
0.54

0.47
0.4
0.44

4.26
0.92
1.19

0.01
0.05
0.07
Page 30

2012-13
2013-14

0.52
0.51

0.43
0.37

1.12
1.38

0.13
0.11

Source: monycontrol.com

In the above chart it is observed that the assets turnover ratio of the sample companies.
NTPC and RELIACE is gradually increasing the assets turnover ratio year by year in the
sample period i.e. NTPC in the year 2009-10 it is 0.48 and it is increased to 0.51 in the
year 2013-14.RELIANCE in the year 2009-10 it is 0.01 and it increased to 0.11 in the
year 2013-14. While coming to TATA and SUZLON it is gradually decreasing the assets
turnover ratio year by year in the sample period i.e. TATA in the year 2009-10 it is 0.47
and it decreased to 0.37 in the year 2013-14 and SUZLON in the year 2009-10 it is 4.26
and it decreased to 1.38 in the year 2013-14

Earnings per Share

SITAMS

YEARS

NTPC

TATA

2009-10
2010-11
2011-12
2012-13

10.59
11.04
11.19
15.3

39.93
39.67
4.93
4.32

SUZLON

RELIANCE

-9.08
-1.04
-2.84
-16.82

1.14
0.98
1.11
1.83
Page 31

2013-14

13.31

4.02

-3.72

0.2

Source: monycontrol.com

In the above chart it is observed that the earnings per share (EPS) of the sample
companies. NTPC is gradually increasing the earnings per share year by year in the
sample period i.e. in the year 2009-10 it is 10.59 and it increased to 13.31 in the year
2013-14. While coming to TATA, SUZLON, and RELIANCE it is decreasing. TATA in
the year 2009-10 it is 39.93 and it is decreased to 4.02 in the year 2013-14. SUZLON in
the year 2009-10 it is -9.08 and it decreased to -3.72 in the year 2013-14.RELIANCE in
the year 2009-10 it is 1.14 and it decreased to 0.2 in the year 2013-14

Book Value
YEARS NTPC
2009-10
2010-11
2011-12
2012-13

SITAMS

77.2
82.94
88.89
97.49

TATA

SUZLON

RELIANCE

443.89
470.93
49.54
51.67

35.9
38.11
30.93
12.81

58.6
56.67
57.4
59.98

Page 32

2013-14

104.08

55.32

10.71

60.17

Source: monycontrol.com

In the above chart it is observed that the book value of the sample companies. NTPC
and RELIANCE is gradually increasing the book value year by year in the sample period
i.e. NTPC in the year 2009-10 it is 77.2 and it increased to 104.08 in the year 201314.RELIANCE in the year 2009-10 it is 58.6 and it increased to 60.17 in the year 201314. While coming to TATA and SUZLON it is gradually decreasing. TATA in the year
2009-10 it is 443.89 and it decreased to 55.32 in the year 2013-14. SUZLON in the year
2009-10 it is 35.9 and it decreased to 10.71 in the year 2013-14

FINDINGS

In India power generation capacity has increased from 1326 mw in 1947 to

243000 mw mid of 2014.

SITAMS

Page 33

 The Net operating profit per share of NTPC only has increased from 56.25 per
cent in 2009-10 to 87.34 per cent in 2013-14 when compare to other sample
companies.
Earnings per share of NTPC are gradually increasing from 10.59 to 13.31 in the
year 2009-10 to 2013-14.
Book value of NTPC in the year 2009-10 it is 77.2 and it increased to 104.08 to a
great growth when compared to sample companies.
The current per capita power consumption comes to around 650kWk/year.
100per cent of NTPC are satisfied regarding the growth level of power industry. It
acts like a motivation to other sample companies.
Debt equity ratio of RELIANCE has been increased 0.15 in 2009-10 to 1.42 in the
year 2013-14.
Net operating profit per share of TATA is good in the year 2009-10 at 299.37 when
compared to other sample companies.

CONCLUSION

Power is an important tool for economic growth of the country. Power

is vital for every form of human activity-domestic, agriculture and industrial
infrastructure such as telecommunication and transport. The demand for
electricity in India is enormous and is growing steadily. This growth has
been slower than countrys economic growth. The big challenge in from of
SITAMS

Page 34

power industry is to balance the demand and supply of electricity. There

exists flak between economic growth and per capita consumption of
electricity.

The survey results that the growth of NTPC are satisfied with their
growth level when compared with the other sample companies. It is advised
that the other sample companies should follow the NTPC and their growth
levels so that they can achieve the objective of doing business and as well as
the growth/development of our economy.

SITAMS

Page 35