North Eastern Electric Power Corporation Limited
(A Government of India Undertaking)
|
North Eastern Electric Power Corporation Limited (A Government of India Undertaking) |
Memorandum Of
Understanding
MEMORANDUM OF UNDERSTANDING
BETWEEN
MINISTRY OF POWER, GOVERNMENT OF INDIA
AND
NORTH EASTERN ELECTRIC POWER CORPORATION LIMITED
2003-2004
PART-I
MISSION AND OBJECTIVES
OF
NORTH EASTERN ELECTRIC POWER CORPORATION LIMITED
To harness the power potential of the North Eastern Region through planned development of power generation projects which in turn would effectively promote the development of the region and the nation.
B) OBJECTIVE:
The Corporation's objectives are as follows:
To commission Kopili Hydro Electric Project-Stage-11 (25 MW) in Assam during – 2003 - 2004 and Tuirial Hydro Electric Project (60 MW) in Mizoram in 2006-07.
To take up execution of the following power projects for capacity addition in the N.E. Region during the Xth, XIth and XIIth plans.
|
Sl No |
Name Of Project |
Benefit |
|
1 |
Kameng HEP (600 MW), Arunachal Pradesh |
Xlth Plan |
|
2 |
Tripura Gas Based CCPP (500 MW), Tripura. |
Xth Plan |
|
3 |
Tuivai HEP (210 MW), Mizoram. |
Xth Plan |
|
4 |
Ranganadi HEP-5tage-11 (130 MW), Arunachal Pradesh. |
Xlth Plan |
|
5 |
Tipaimukh HEP (Multipurpose) (1500 MW), |
Xlth Plan |
|
6 |
Lower Kopili HEP (150 MW), Assam. |
Xth Plan |
|
7 |
Dikrong HEP (100 MW), Arunachal Pradesh
|
Xth Plan |
To ensure optimum utilization of the available capacity considering the envisaged load demand in the North Eastern Region, a Generation of 2075 MU has been assessed against Hydro Projects at 85% machine availability and 2060 MU against Thermal Projects at 86% machine availability.
As the power generated by NEEPCO is not being fully absorbed by the NER constituent states, it contemplates to work towards load development in the NER, locate markets outside NER, and market the power generated by it outside the region to improve the financial performance of the Corporation.
PART - II
PERFORMANCE TARGET FOR 2003-2004 AND EVALUTION CRITERIA
|
Sl. No. |
Particulars |
Units |
Weight |
Budget |
Criteria Value (2003-2004) |
Remarks |
||||||
|
B.E. |
R.E. |
B.E. |
Excell-ent |
Very Good |
Good |
Fair |
Poor |
|||||
|
2002-2003 |
2002-2003 |
2002-2003 |
||||||||||
|
1. |
Generation |
|||||||||||
|
a) Hydro |
MU |
3 |
1875 |
1300 |
2075 |
2179 |
2075 |
1971 |
1873 |
1778 |
||
|
b) Thermal |
MU |
6 |
2000 |
1500 |
2060 |
2163 |
2060 |
1958 |
1859 |
1766 |
||
|
2. |
a) Machine Availability |
|||||||||||
|
i) Hydro |
% |
7 |
82 |
75 |
85 |
89 |
85 |
81 |
77 |
73 |
||
|
ii) Thermal |
% |
8 |
86 |
80 |
86 |
90 |
86 |
82 |
78 |
74 |
||
|
3. |
Gross Margin |
Rs. in Crs. |
20 |
489.72 |
423.72 |
462.94 |
488.75 |
462.24 |
426.24 |
396.68 |
368.02 |
|
|
4. |
Net Profit/Net worth |
% |
20 |
2.83 |
(-)13.86 |
2.57 |
3.54 |
2.57 |
1.06 |
(-)0.22 |
(-)1.54 |
|
|
5. |
Collection of current dues |
% |
2 |
24* |
43* |
82 |
85 |
82 |
78 |
74 |
70 |
*BE & RE for 02-03 is in months |
|
6. |
Milestones |
22 |
Details in Annexure II Attached |
|||||||||
|
7. |
Environmental Safegauards Hydro Projects: |
|||||||||||
|
a) Timely release of payment to the respective State Govt. for the compensatory afforestation as per MOE&F guidelines. |
2 |
1St Mar’03 |
1st Mar’03 |
1st Mar’04 |
1st Feb’04 |
1st Mar’04 |
7th Mar’4 |
15th Mar’04 |
31st Mar’04 |
|||
|
7 |
b)Monitiring of the implementation of the catchment area treatment plan. |
2 |
Quart-erly |
Quarter-ly |
Quart-erly |
After every two months |
Quart-erly |
After every two months |
After every two months |
After every two months |
||
|
8. |
H.R.D. |
|||||||||||
|
a) Training of workmen/supervisor |
- |
1 |
125 |
125 |
140 |
147 |
140 |
133 |
126 |
120 |
||
|
b) Training of Executives |
- |
1 |
45 |
115 |
125 |
131 |
125 |
119 |
113 |
107 |
||
|
c) IT Plan for hydro stations |
- |
1 |
- |
- |
1st Mar’04 |
Feb’04 |
1st Mar’04 |
7th Mar’04 |
15th Mar’04 |
31st Mar’04 |
||
|
9. |
Strategic Plan |
- |
2 |
- |
- |
30th Sept’03 |
15th Sept’03 |
30th Sept’03 |
31st Oct’03 |
30th Nov’03 |
31st Dec’03 |
|
|
10. |
Timely submission of Draft MOU for 2004-05 after due discussion with the administrative department. |
- |
1 |
- |
- |
15th Dec’03 |
Before 8th Dec’03 |
15th Dec’03 |
22nd Dec’03 |
29th Dec’03 |
5th Jan’04 |
|
|
11. |
Timely submission of Performance Evaluation Report (Composite score) for 2002-03 MOU on the basis of the provisional data. |
- |
1 |
- |
- |
2nd May’03 |
Before 30th April’03 |
2nd May’03 |
4th May’03 |
6th May’03 |
8th May’03 |
|
|
12. |
Timely signing of MOU for the year 2003-04. |
- |
1 |
- |
- |
On 1st April’03 |
Before 1st April’03 |
On 1st April’03 |
On or before 5th April’03 |
On or before 10th April’03 |
After 10th April’03 |
|
Note : The figure in the bracket indicates negative figure.
NOTE REGARDING LOW GENERATION
1. The ratio of peak load and off peak load in the N.E. Region is 2:1.
2. All the Gas Based Power Stations of NEEPCO are designed for 6000 operation hours at 68.49% PLF. But the load curve of the NER as communicated by NERLDC hardly indicates any demand during the off peak hours, even requirement of power during peak hours is not substantial and consistent. Maximum peak is observed to be for an hour or so.
Consequently as mentioned above, the power from the hydro power station of NEEPCO also could not be utilised fully during summer season commesurate to its available capacity.
PART-III DELEGATION OF POWER |
 |
| Shri RV Shahi , Secretary MOP(Left) & Shri SC Sharma, CMD, NEEPCO (right) signing MOU, 2003 - 2004 |
The Government is requested to delegate all necessary powers as per the guide lines/instruction issued in this regard from time to time, applicable to similar Corporations.
PART - IV
ASSISTANCE FROM GOVERNMENT
The following Government Assistanae shall be required with a view to enable the Corporation to achieve its both short and long term objectives.
1.Law and order remains a serious problem in the N.E. Region. NEEPCO finds it difficult to execute the project works in an insecure atmosphere for the work force. Hence the Ministry of Home Affairs, Department of Development of N.E. Region and Ministry of Power, Government of India are requested to provide adequate security coverage for NEEPCO's vital installations .and projects under execution/New schemes and their respective personnel working in the projects/plants. NEEPCO expects the respective State Governments to maintain law and order for smooth Operation & Maintenance of commissioned projects and execution of on-going project works.
2.NEEPCO is of the view that security cost should not be loaded to project cost as it could make the tariff unviable. Already the North East States are unable to make payments for their power dues on account of their fragile finances, and they will not be able to afford high tariff. NEEPCO expects the law and order agencies of the State Governments and the Government of India to bear the expenditure on security and law and order.
3. The cost of Hydro Electric Project in the N.E. Region is higher than similar projects in other parts of the Country because of the security cost due to prevailing insurgency problem in the region, construction cost of long access road, geological problems due to young Himalayan geology and less working period due to prolonged monsoon. Cost of road construction is also more due to rough terrain and poor geology. Cost of access road should be borne by the Ministry of Surface Transport, Government of. India.
4. The Government would assist NEEPCO in obtaining soft long term bilateral and multilateral external financial assistance for executing projects in the North East.
5. The Government will assist NEEPCO in imparting overseas professional training to its Executives under various training schemes of the Government of India.
PART-V FREQUENCY OF MONITORING AND INFORMATION FLOW |
 |
| Shri RV Shahi , Secretary MOP(Left) & Shri SC Sharma, CMD, NEEPCO (right) presenting MOU, 2003 - 2004 |
For regular monitoring of each activity under various projects in execution, the following procedures are being adopted.
a. Monthly Statement of financial cost and expenditure of projects to MOP/MHA/PC/CEA.
b.Monthly Flash Report to CEA/MOP/MHA/PC
 |
ANNEX – 1
COMMENTS OF THE PSE QUANTITATIVE PARAMETERS
|
SL No |
Name Of Project |
Generation Capacity (MW) |
Yearly Generation Target(MU) |
|
A) HYDRO |
|||
|
1. |
Kopili HE Project |
150 (2 x 50 2 x 25) |
545 |
|
2 |
Kopili HE Project (1st Stage Extn) |
2 x 50 = 100 |
355 |
|
3. |
Doyang HE Project |
3 x 25 = 75 |
175 |
|
4. |
Ranganadhi HE Project |
3 x 135 = 405 |
1000 |
|
730 |
2075 |
||
|
B) |
THERMAL |
||
|
1. |
Assam Gas Based Power Project |
6 x 33.50 = 291 3 x 30 |
1550 |
|
2 |
Agartala Gas Turbine Power Project |
4 x 21 = 84 |
510 |
|
375 |
2060 |
||
|
TOTAL (A + B) |
1105 |
4135 |
|
2. FINANCIAL TARGET
The Corporation plans to achieve a total revenue of Rs. 730.94 crores during 2003-2004. The Corporation will earn a net profit of Rs. 58.42 crores during the year. The Government will provide a net budgetary support of Rs. 216.49 crores for a total plan .expenditure of Rs. 414.49 crores during the year as per the proposed plan allocation for the year 2003-2004. This investment is envisaged to be met as under:
TOTAL Rs. 414.49 crores
3. PROJECT IMPLEMENTATION
The Corporation will make a total investment of about As. 414.49 crores on various schemes during the year 2003-04 subject to investment sanctions wherever necessary. The Corporation will improve the project implementation parameters.
4. PERFORMANCE EVALUATION
For the purpose of performance evaluation during the year 2003-2004 the Guidelines issued for setting performance targets and evaluation criteria values will be followed. The performance evaluation will be done at the end of the year.
ANNEXURE - II
EXECUTION OF MILESTONES DURING 2003 - 2004
|
Sl No |
Activity |
Quarter |
Weights |
Criteria value |
Remarks |
||||
|
Excellent |
Very Good |
Good |
Fair |
Poor |
|||||
|
A |
Turial HE Project (60MW) |
||||||||
|
1 |
1,20,000 cum boring of diversion tunnel. |
4th |
1.5 |
Feb '04 |
1st Week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar '04 |
4th Week Mar '04 |
|
|
2 |
5,82.000 cum filling in main dam |
4th |
1 |
Feb '04 |
1st Week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar '04 |
4th Week Mar '04 |
|
|
3 |
Completion of Power House Excavation |
4th |
1.5 |
Dec '03 |
1st Week Jan '04 |
2nd Week Jan '04 |
3rd Week Jan '04 |
4th Week Jan '04 |
|
|
4 |
3,000 cum concreting in Power House |
4th |
1 |
Feb '04 |
1st week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar 04 |
4th Week Mar '04 |
|
|
5 |
50% Fabrication and transportation of intake gate & stoplog gates with hoist, trashrack complete |
4th |
1 |
Feb '04 |
1st week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar 04 |
4th Week Mar '04 |
|
|
6 |
Model Testing & approval under LOT-V |
1st |
1 |
May '03 |
June '03 |
July 03 |
Aug 03 |
Sept 03 |
|
|
B |
Kopili HEP- Stage - II (25MW) |
||||||||
|
1 |
Completion of alignment of Generator & Turbine |
1st |
1 |
3rd week Apr '03 |
4th Week Apr 03 |
May '03 |
June '03 |
July '03 |
|
|
2 |
Erection and commisioning of fire fighting equipment & ventilation system of power house |
1st |
1 |
May '03 |
June '03 |
July '03 |
Aug '03 |
Sept '03 |
|
|
3 |
Completion of boxing of Generator |
1st |
1 |
2nd Week Jun '03 |
4th Week Jun '03 |
July '03 |
Aug '03 |
Sept '03 |
|
|
4 |
Completion of Erection of Steel structure of switchyard & commisioning . |
1st |
1 |
3rd week Jun '03 |
4th Week Jun '03 |
July '03 |
Aug '03 |
Sept '03 |
|
|
5 |
Completion of Cable laying from power house to switchyard. |
2nd |
1 |
June '03 |
July '03 |
2nd Week Aug '03 |
4th Week Aug '03 |
Sept '03 |
|
|
6 |
Commissioning of C&P panels/ DVR/HMC/ASE |
2nd |
1 |
2nd week Jul '03 |
4th Week July '03 |
2nd Week Aug '03 |
4th Week Aug '03 |
Sept '03 |
|
|
7 |
Pre-commisioning check and sybnchronisation |
3rd |
1 |
2nd Week Oct '03 |
1st Week Nov '03 |
3rd Week Nov '03 |
1st Week Dec '03 |
3rd Week Dec '03 |
|
|
C |
Kameng HE Project (600MW) |
||||||||
|
1 |
568 Ha of land acquisition . |
4th |
1 |
Jan '04 |
Feb '04 |
2nd Week Mar '04 |
3rd Week Mar '04 |
4th Week Mar '04 |
|
|
2 |
Completion of 53 km approach road |
4th |
1 |
Feb '04 |
1st Week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar '04 |
4th Week Mar '04 |
|
|
3 |
30% completion of construction power. |
4th |
1 |
Feb '04 |
1st Week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar '04 |
4th Week Mar '04 |
|
|
D |
Tuivai HE Project (210MW)* |
||||||||
|
1 |
Completion of Geological Investigation / Exploration |
2nd |
1 |
Jun '03 |
July '03 |
Aug '03 |
Sept '03 |
Oct '03 |
|
|
2 |
Completion of Topographical Survey |
2nd |
1 |
Jun '03 |
July '03 |
Aug '03 |
Sept '03 |
Oct '03 |
|
|
3 |
Completion of 43 KM of approach roads |
4th |
1 |
Feb '04 |
1st Week Mar '04 |
2nd Week Mar '04 |
3rd Week Mar '04 |
4th Week mar '04 |
|
|
Note : *Subject to the Investment clearance by Govt. Of India for the Iind stage development of the Projects. |
|||||||||
|
E |
Tripura Gas Based Combined Cycle Power Project (500MW)* |
||||||||
|
1 |
60 Ha of land acquisition . |
2nd |
0.5 |
June '03 |
July '03 |
Aug '03 |
Sept '03 |
Oct '03 |
|
|
2 |
Preparation of Bids Document |
1st |
0.5 |
May '03 |
Jun '03 |
July '03 |
Aug '03 |
Sept '03 |
|
|
3 |
Floating of NIT for main equipment |
2nd |
0.5 |
Jun '03 |
July '03 |
Aug '03 |
Sept '03 |
Oct '03 |
|
|
4 |
20% building construction |
4th |
0.5 |
Jan '04 |
Feb '04 |
1st week mar '04 |
2nd week Mar '04 |
4th Week Mar '04 |
|
|
Note : *Subject to the investment clearance by the Government of India. |
|||||||||
APPENDIX
PAST FIVE YEARS DATA FOR THE PERFORMANCE INDICATORS
|
Financial Year |
Schemes |
Genera tion MU |
Machine Availability % |
Gross Margin Rs in Crs |
Net Profit Net Worth % |
Plant Load Factor in % |
Milestone |
|
|
Target |
Achievement |
|||||||
|
2002-2003 Anticipated |
Hydro |
1300 |
75 |
423.72 |
(-)13.86 |
--- |
22 |
--- |
|
Thermal |
1500 |
80 |
56 |
|||||
|
2001-2002 |
Hydro |
885 |
87 |
398.47 |
2.34 |
--- |
20 |
10 |
|
Thermal |
1878 |
86 |
63 |
|||||
|
2000 - 2001 |
Hydro |
898 |
76 |
422.41 |
5.46 |
--- |
23 |
19 |
|
Thermal |
1662 |
82 |
53 |
|||||
|
1999 - 2000 |
Hydro |
753 |
75 |
259.87 |
1.38 |
--- |
24 |
21 |
|
Thermal |
1473 |
67 |
46 |
|||||
|
1998 - 1999 |
Hydro |
995 |
79 |
211.49 |
3.6* |
--- |
33 |
19 |
|
Thermal |
940 |
74 |
35 |
|||||
|
Note :- *Net Profit / Capital Employed. |
||||||||
ANNEXURE - 1
BALANCE SHEET PARTICULARS
|
Particulars |
As on 31.03.200 |
As on 31.03.2001 |
As on 31.03.2003 |
As on 31.03.2003 (Provisional/RE) |
As on 31.03.2004 (Projected) |
|
Net Fixed Assets : |
|||||
|
Opening Balance |
1192.41 |
1762.30 |
2319.49 |
3372.23 |
3402.79 |
|
Additions |
678.89 |
710.88 |
1258.63 |
230.00 |
20.00 |
|
Deductions |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
Depreciation for the year |
109.00 |
153.69 |
205.89 |
199.44 |
208.46 |
|
Closing Balance |
1762.30 |
2319.49 |
3372.23 |
3402.79 |
3214.34 |
|
Depreciation on asset expected to be capitalised during 2003-04 may be identified. |
|||||
|
Working Capital : |
|||||
|
Current Assets |
670.30 |
926.04 |
1522.26 |
1675.00 |
1840.00 |
|
Current Liabilities |
125.18 |
291.09 |
454.95 |
427.00 |
390.00 |
|
Net Working Capital |
545.12 |
634.95 |
1067.31 |
1248.00 |
1450.00 |
|
Total Capital Employed |
2307.42 |
2954.44 |
4439.54 |
4650.79 |
4664.34 |
|
Paid up Capital |
1869.84 |
1876.84 |
1918.12 |
1957.05 |
2152.05 |
|
Reserves |
246.87 |
367.33 |
427.92 |
148.20 |
206.62 |
|
Free reserves |
166.11 |
281.71 |
338.94 |
61.11 |
121.04 |
|
Total Net Worth |
2025.95 |
2158.55 |
2257.06 |
2018.16 |
2273.09 |
ANNEXURE-2
GROSS MARGIN, GROSS PROFIT AND NET PROFIT PARTICULRAS
(Rs. In Crores)
|
Profit & Loss Particulars |
1999-2000 |
2000-2001 |
2001-2002 |
2002-2003 |
2003-04 |
||||
|
MOU Target |
Actual |
MOU Target |
Actual |
MOU Target |
Actual |
MOU Target |
Provisional RE |
MOU Target |
|
|
1. Total Income |
399.14 |
440.40 |
454.30 |
529.74 |
564.33 |
614.51 |
752.65 |
547.60 |
730.94 |
|
Operating/Services/Sales/ Accretion/Depletion to finished stocks to work-in-progress. |
384.10 |
357.39 |
454.26 |
391.86 |
474.33 |
453.23 |
612.65 |
392.85 |
614.24 |
|
Other Income |
15.04 |
83.21 |
0.04 |
137.88 |
90.00 |
161.28 |
140.00 |
154.75 |
116.70 |
|
2. Total expenditure (Figures may also be provided under major heads such as) Raw materials, Purchase of Product for resale, Duties & other charges applicable to product. |
0.04 |
0.12 |
0.04 |
0.13 |
0.16 |
0.15 |
0.18 |
0.16 |
0.18 |
|
Power, Fuel & Cost of Gas etc. |
68.00 |
92.80 |
70.00 |
117.34 |
105.00 |
118.77 |
142.00 |
129.00 |
136.00 |
|
Salaries/Wages/Operation & Maintenance & Administrative expenditure |
50.96 |
63.86 |
64.46 |
85.39 |
86.59 |
93.06 |
121.22 |
119.44 |
131.82 |
|
3. Gross Margin |
280.14 |
259.87 |
319.80 |
422.41 |
372.58 |
398.47 |
489.25 |
423.72 |
462.94 |
|
Prior Period Adjustment |
0.00 |
(-)23.95 |
0.00 |
95.53 |
0.00 |
(-)4.06 |
0.00 |
124.72 |
0.00 |
|
Depreciation |
145.00 |
102.84 |
140.10 |
151.81 |
179.23 |
169.48 |
213.20 |
199.44 |
208.45 |
|
4. Gross Profit |
135.14 |
157.03 |
179.70 |
270.60 |
193.35 |
228.99 |
276.05 |
224.28 |
254.49 |
|
Interest |
119.39 |
129.10 |
156.23 |
150.75 |
157.58 |
171.43 |
207.95 |
209.75 |
193.07 |
|
Waiver of Surcharge for Securitisation |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
294.25 |
0.00 |
|
Provision of Tax |
0.00 |
0.00 |
0.00 |
2.06 |
0.00 |
4.71 |
0.00 |
0.00 |
3.00 |
|
5. Net Profit |
15.75 |
27.93 |
23.47 |
117.79 |
35.77 |
52.85 |
68.10 |
(-)279.72 |
58.42 |
|
6.Gross Profit/Capital Employed % |
6.47 |
6.81 |
5.50 |
6.08 |
5.95 |
5.16 |
5.85 |
4.82 |
5.46 |
|
7. Net Profit / Net Worth % |
0.78 |
1.38 |
1.09 |
5.46 |
1.47 |
2.34 |
2.83 |
(-)13.86 |
2.57 |
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