DIRECTORS’ REPORT
The Board of Directors take immense pleasure in presenting the 45th Annual
Report on the business and operations of the Corporation with the audited
statement of accounts for the year ended March 31, 2015.
I. Financial Performance:
Financial Results
Gross income from
Sale of energy
Less: Advance against
Depn. for Current Year
Add: Reversal of AAD
Net income from sale
of energy
Other Income
Total Income
Operating Expenditure
Operating Profit
Finance Charges,
Depreciation. & prior
period adjustments
Profit before tax
Provision for Tax*
Deferred tax
Profit after tax
For the year ended
March 31, 2015
(` in crores)
Standalone Consolidated
For the year ended
March 31, 2014
(` in crores)
Standalone Consolidated
6663
6663
6592
74
61
--------6650
74
61
--------6650
43
--------6549
1134
7784
5963
1821
1134
7784
5963
1821
1044
7593
5680
1913
1708
1708
1659
113
36
113
36
77
77
254
(35)
(1)
290
NA
NA
NA
NA
NA
NA
NA
NA
NA
Standalone&Consolidated financial statement as on 31.03.2015:
(` In crores)
Sl.
Particulars
No.
I.
Sources of funds
1 Shareholders’funds
(a) Share Capital
(b) Reserves and surplus
2 Share application money
Standalone
4141
3853
1
Consolidated
4141
3856
pending allotment
3 Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (Net)
(c) Other Long term liabilities
(d) Long term Provisions
4 Current Liabilities
(a) Short-term borrowings
(b) Trade payables
Other current liabilities
Short-term provisions
Total (A)
Application
of
Funds
II
1 Non-current assets
(a) Fixed assets
Tangible assets
Intangible assets
Capital W.I.P.
Unallocated expenses during
construction period
(b) Non-current investments
(c) Long-term loans and
advances
2 Current Assets
(a) Inventories
(b) Trade Receivables
(c)Cash & cash equivalents
(d)Short term loans and advances
(e) Other current assets
Total (A)
206
206
4450
588
5
195
8693
588
25
196
10326
1251
1191
209
26415
10326
1251
1291
273
30846
6019
0.41
4580
6097
0.42
9034
857
852
556
4
445
556
12974
310
554
14
26415
556
12974
310
554
15
30846
-
Profit before Tax
 Profit before tax during the year is `113 crores as against `254 crores during the
previous year.*
Turnover
 Turnover during the year was `6663crores as against`6592 crores during the
previous year, due to increase in energy sales in Thermal and Hydro Stations.*
*in view of no commercial activity in the subsidiary and JV Companies, the
standalone and consolidated results are same
2
Share Capital
 The Authorised Share Capital of the Company is `5100,00,00,000andthe paid up
capital is `4140,66,86,000/- as on 31.03.2015.
A) Issue of equity shares with differential rights –Nil
B) Issue of sweat equity shares - Nil
C) Issue of employee stock options - Nil
D) Provision of money by company for purchase of its own shares by
employees or by trustees for the benefit of employees – Nil
Generation
 Generation during the year was 29785MUs as against 28712 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 `41.41crores
Special Reserve
An amount of `1.93 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 `475.78 croresduring the year towards equity
for setting up power generation plants by KPCL.
Change in nature of Business, if any
 There has been no change in the nature of business of the Company during the
year.
Material Changes affecting the Financial position of the Company
 There has been no changes affecting the Financial position of the Company
during the year
II. Financial Management
Financial Initiatives
With the regulatory environment prevailing in the State, the company has been
pursuing with various initiatives to reduce the cost of borrowings. KPCL has saved
3
an amount of `69.91 crores during the balance tenure of the loan due to swapping of
high cost loan with low cost loan drawn for BTPS Unit-2.
III. Realisation of dues from KPTCL/ESCOMs
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 `6515.55crores. The outstanding dues
from ESCOMs/KPTCL as on 31.03.2015 is `12972.05crores.
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”.
IV. Power Purchase Agreements
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. KERC has issued order for determination of tariff in respect of 1x250
MW RTPS, BTPS Unit-2 and Hydro Station of erstwhile VVNL. 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.
V.Corporate Governance
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.
4
 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 at west
gate ofVidhanaSoudha& a park at Siddalingaiah circle.
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.
C) Board of Directors
Sl.
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Name of Directors
Shriyuths/Smt
MR Kamble, IAS
D Satya Murty, IAS
Ritesh Kumar Singh,IAS
G Kumar Naik, IAS
Dr. H Basker, IAS
Siddaramaiah
DK Shivakumar
M Maheshwar Rao, IAS
P Bhaskar
R Nagaraja
P Ravi Kumar, IAS
DN Narasimha Raju, IAS
ISN Prasad, IAS
PB Ramamurthy, IAS
Jawaid Akhtar, IAS
Suma Vasantha
Period
Post held
From
Upto
Managing Director
Director
Managing Director
Director
Director
Chairman
Vice Chairman
Managing Director
Technical Director
Finance Director
Director
Director
Director
Director
Director
Woman Director
06.02.2012
23.10.2010
30.06.2014
01.08.2013
21.08.2013
21.05.2013
13.02.2014
10.10.2014
05.03.2013
03.03.2010
10.02.2014
21.05.2013
06.09.2013
22.09.2014
27.05.2015
29.06.2015
30.06.2014
22.09.2014
10.10.2014
27.05.2015
24.08.2015
-
5
-
The Board places on record its appreciation of the services rendered by the
outgoing/ceased Directors during their tenure.
Note:The Company being a fully owned Govt. of Karnataka undertaking, the Board
of Directors are appointed by issuing Govt. order depending on the requirements
and whenever the officials in Government are transferred, retired, etc.
Government of Karnataka vide order no,EN 152 Samanvaya 2015 dated 21.9.2015
has nominated Sriyuths DN Narasimha Raju, P Ravikumar, PB Ramamurthy, ISN
Prasad, Jawaid Akhtar and Smt. Suma Vasanth as independent directors.
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 ShriyuthsPBRamamurty,
MMaheshwar Rao - Managing Director, P Bhaskar - Technical Director and R
Nagaraja - Finance Director
ii) Audit Committee
Pursuant to Section 177 of the Companies Act 2013, Audit Committee was
constituted in the Corporation in the year 2001 with the following terms of
reference:
A) Members of the Audit Committee shall elect a Chairman from amongst
themselves.
B) (a) The Audit Committee shall have discussions with the auditors periodically
about the working of existing internal control systems for 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 177 of Companies Act
2013, 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.
6
(h) One meeting must be held before finalisation of Annual Accounts and one
necessarily every six months.
The statutory auditor, the internal auditor and the director in charge
offinanceshallattend 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 2014-15:
Shri P Ravikumar, IAS
Shri ISN Prasad, IAS
Shri PB Ramamurthy, IAS
Shri P Bhaskar, Technical Director
In the meeting held on 20.03.2015the Managing Director briefed the Committee
about the proposed Revenue Budget proposals for the year 2015-16 along with
the actual/budgeted/revised estimates for the years 2014-15 and 2015-16. In its
meeting held on 23.07.2015, the Audit Committee reviewed in detail the annual
accounts for the year 2014-15 and recommended the same for consideration by
the Board.
iii) CSR Committee:
A CSR Committee has been constituted by the Board comprising the following
members:
Shri P Ravikumar, IAS
Shri M Maheshwar Rao, IAS
Shri ISN Prasad, IAS
Shri P Bhaskar, Technical Director
The CSR Committee in its meeting held on 20.03.2015 had recommended the
works to be taken up under CSR by the company and the Board in its meeting
held on 26.03.2015 accepted the recommendations of the subcommittee on the
policy to be adopted and the programmes to be executed. It is to state that as
against the requirement to spend around `404.17 lakhs, during the year an amount
of `5,42,38,950/-has been spent on CSR activities.
CSR Policy: To direct KPCL's CSR Programmes, inter alia, towards achieving one or more
of the following - enhancing environmental and natural capital; supporting
rural development; promoting education; providing preventive healthcare,
providing sanitation and drinking water; creating livelihoods for people,
especially those from disadvantaged sections of society, in rural and urban
India; preserving and promoting sports.
7
 To engage in affirmative action interventions such as skill building and
vocational training, to enhance employability and generate livelihoods for
persons from disadvantaged sections of society;
 Adopt an approach that aims at achieving a greater balance between social
development and economic development.
Focus areas:KPCL CSR Policy focused mainly on the following areas:
a) Rural Development Projects
b) Healthcare including sanitation and drinking water
c) Education & Vocational Skills (incl. Educational Infrastructure)
d) Any other item/s under Sch.VII of The Companies Act 2013 or as may be
prescribed from time to time.
Details of CSR works carried during the year are furnished in the Annexure – A.
iv) Disclosure Underthe Sexual Harassment of Women At Workplace (Prevention,
Prohibition and Redressal) Act, 2013
The Company (KPCL, the holding company’s policy & rules applicable) has in
place Anti Sexual Harassment Policy in line with the requirements of The Sexual
harassment of Women at the work place (Prevention, Prohibition and Redressal)
Act,2013. Internal complaints committee has been set up to redress complaints
received regarding sexual harassment. All employees (Permanent, contractual,
temporary, trainees) are covered under this policy. The following is a summary of
Sexual harassment complaints received and disposed off during the year:
Year
complaints received
Complaints disposed off
2014– 15
2
2
E)Meetings of the Board, sub-committees & management committees pertaining
to the financial year
i)Board level
Board
Technical Committee
Audit Committee
Sub Committees – Board
CSR Committee
ii) Managementlevel
Contract Management Group
:
:
:
:
:
Six
Three
Three
One
One
: Thirty
iii) Annual General Meetings:
Meeting No.
& Date
Held at
Special
Resolutions
8
EGM –
10.01.2012
42 AGM 25.09.2012
EGM –
16.01.2013
43 AGM 30.09.2013
iv)
Mee
tings
of
Boa
rd of
Dire
ctor
s:
44AGM 27.09.2014
EGM 20.03.2015
Regd. Office, No. 82, Shakti
Bhavan, Race Course Road,
Bangalore-560 001
Regd. Office, No. 82, Shakti
Bhavan, Race Course Road,
Bangalore-560 001
Dematerialization of securities –issued
in the name of Govt. of Karnataka
Ordinary Resolutions for Approval
to mortgage/ hypothecate/ charge
assets of 5 MW Solar Plant at
Belakavadi in Mandya District in
favour of Lenders
Regd. Office, No. 82, Shakti Amendment to the Capital Clause in
Bhavan, Race Course Road, the MoA&Amendment to the
Bangalore-560 001
Memorandum of Association Inclusion of provisions for Coal
Mining
Regd. Office, No. 82, Shakti
_
Bhavan, Race Course Road,
Bangalore-560 001
Regd. Office, No. 82, Shakti Ordinary Resolutions for
Bhavan, Race Course Road, Enhancement of Authorised Share
Bangalore-560 001
Capital - Amendment to clause V of
the Memorandum of Association.
Regd. Office, No. 82, Shakti Special Resolutionsfor borrowing of
Bhavan, Race Course Road, funds and to mortgage.
Bangalore-560 001
All the directors have regularly attended the meetings.
v) Declaration by Director(s):
All the Directors have furnished declarations as to their qualification for being
appointed as Directors and Disclosure of Interest in other bodies corporate in Form
MBP-1 as required under the Act.
F) Managerial Remuneration
Extract of Annual Return of the Company in Form MGT-9 is annexed to this Report.
G) 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
Authorities 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, 475 applications were received
9
and processed. Information was furnished for 443applications.In respect of 32
applications, information was pending as these were received after 15.03.2015.
VI.Capital Expenditure
Capital Expenditure incurred by the Corporation amounts to `2588.55 crores.
VII.Operational Performance
The Corporation operates 16 hydel stations, 4 mini hydel stations and two thermal
power plants, one wind energy farm and one diesel generating plant and four solar
PV plants with a total installed capacity of 6498.905 MW as on 31.03.2015 (Hydel:
3652.35 MW : Thermal : 2720 MW: Wind : 4.555 MW, Diesel Generator: 108 MW
and Solar PV Plants: 14 MW) : Energy generated during the year from Hydel,
Thermal, Wind, Diesel Generating Plant and Solar PV Plants was 12972.28 MU,
16786.37 MU, 9.59 MU, 0 MU and 16.46 MU respectively totaling to 29784.69
MU. The inflows to the three major reservoirs viz., Linganamakki, Supa and Mani is
about 318.578 TMC and the maximum levels reached during 2014-15 is 1819 ft,
557.73 M and 591.28 M respectively.
Generation from Thermal Stations during 2014-15:
a) BTPS Unit-1 generated 2700 MU with a PLF of 61.65%
b) BTPS Unit-2 generated 3107 MU with a PLF of 70.94%
c) RTPS Unit 1 to 7 generated 9991.62 MU with a PLF of 77.59 %
d) RTPS Unit 8 generated 987.72 MU with a PLF of 45.10%
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
(MU)
Generation
Thermal
Hydro
DG
Wind
Solar
Total
2014-15
16786.37
12972.28
0
9.59
16.46
29784.70
2013-14
15828.95
12828.15
22.87
13.62
18.22
28711.81
B. Performance of RTPS
Particulars
Generation in Mus
2014-15
U 1 to 7
U8
9991.62
987.72
10
2013-14
U 1 to 7
U8
8993.50
805.78
Aux. consumption in Mus
Aux. Consumption in %
Plant load factor (%)
Coal consumption (lakh MT)
Specific coal consumption
(Kg/KWh)
C
. Specific oil consumption
(ml/KWh)
PPlant availability factor (%)
e Units in operation
907.60
9.08
77.59
75.70
0.758
88.71
8.98
45.10
7.35
0.744
917.29
10.20
69.84
71.40
0.789
80.59
10
36.79
6.39
0.788
2.43
13.89
2.84
27.67
87.90
7
71.29
1
82.65
7
70.13
1
r
C. Performance of BTPS
Particulars
2014-15
Generation in Mus
Aux. consumption in Mus
Aux. Consumption in %
Plant load factor (%)
Coal consumption (lakh MT)
Specific coal consumption
(Kg/KWh)
Specific oil consumption
(ml/KWh)
Plant availability factor (%)
Units in operation
2013-14
U1
2700.07
186.94
6.92
61.65
18.63
0.690
U2
3106.96
190.77
6.14
70.94
21.45
0.690
U1
3048.73
196.71
6.45
69.61
21.62
0.704
U2
2980.94
183.61
6.16
68.06
20.95
0.697
2.26
1.48
1.57
2.14
72.59
1
82.94
1
86.08
1
84.51
1
D. 1)Performance of Major Hydro Stations
2014-15
Stations
Gen. in
MU
Plant
load
factor
%
Sharavathy
Nagajhari
Varahi
5208.756
3223.36
1127.546
57.45
41.58
27.98
2013-14
Plant
av..
factor
%
Gen. in
MU
Plant
load
factor
%
1.18 5537.12
1.45 2616.74
2.31 1312.08
61.07
33.75
32.56
% Aux.
Conspn
.
92.72
87.79
97.58
Plant
avail.
factor
%
% Aux
Conspn.
92.63
87.41
99.23
1.15
1.28
2.24
2)Performance of Minor Hydel Stations (100 MW & above)
Minor
Stations
Supa
2014-15
Generation
in MU
Plant load
factor in %
448.33
51.18
2013-14
Availability
factor in %
84.92
11
Generation
in MU
Plant load
factor in %
Availability
factor in %
465.767
53.17
95.39
Gerusoppa
Kadra
Kodasalli
MGHE
Almatti
E.
550.08
400.86
382.86
344.65
478.18
26.16
30.51
36.42
28.26
18.82
98.45
87.89
95.79
88.03
74.10
613.061
360.811
324.598
264.703
503.147
29.16
27.46
30.88
21.71
19.81
99.07
99.20
97.36
61.46
94.69
Station wise Generation in Mus
F.
Station
2014-15
2013-14
Raichur Thermal Power Station
Bellary Thermal Power Station
Sharavathy Generating Station
Gerusoppa Dam Power House
Linganamakki Dam Power House
Nagjhari Power House
Supa Dam Power House
Kadra Dam Power House
Kodasalli Dam Power House
Varahi Underground Power House
Mani Dam Power House
Almatti Dam Power House
Ghataprabha Dam Power House
Bhadra Dam Power House
Kalmala, Sirwar, Ganekal&Mallapur
Shivasamudram
Shimshapura Hydro Electric Station
Mahatma Gandhi Hydro Electric Station
Munirabad Power House
DG Plant Yelahanka
Kappatagudda Wind Farm
Solar PV Stations at Kolar & Belgaum
Total
10979.34
5807.03
5208.76
550.08
252.97
3223.36
448.33
400.86
382.86
1127.55
27.95
478.18
65.18
50.11
0
219.76
84.87
344.652
106.82
0
9.59
16.46
29784.70
9799.28
6029.67
5537.12
613.061
265.898
2616.736
465.767
360.81
324.598
1312.08
32.871
503.148
81.815
63.099
0
216.534
67.833
264.703
102.072
22.87
13.624
18.223
28711.814
Reservoir Level in Hydel projects
Reservoir
Full level
Linganamakki
Supa
Mani
1819 ft
564 mts
594.36 mts
Min draw
down level
1715 ft
494 mts
565.1 mts
Highest level
in 2014-15
1819
557.33
591.28
VIII.Ongoing Power Projects:
1. Yeramarus (2x800 MW) Thermal Power Station
12
Date
6.9.14
21.9.14
22.9.14
% Capacity
100
81.27
81.53

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 are in progress. Approximate total revised cost of the
project is `.11333 crores. The project will generate 11913 Mu 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.
Status of construction works on various fronts are as below:















Boiler Unit-1: About 95 % of Boiler erection has been completed. Preparation
for Non-drainable H.T and subsequently for Boiler Light Up is under progress.
Boiler Unit-2: About 90% of Boiler erection has been completed.
Turbine & Auxiliaries: Unit-1-Turbine Boxed Up. Seal oil flushing stage-1
completed. MDBFP work in progress.
Turbine & Auxiliaries: Unit-2-LP Turbine erection works are in progress.
Genearator-Unit-1: Generator & Rotor erection completed and Exciter erection
is in progress.
400 KV switchyard: Works nearing completion and partially charged for supply
to equipments for testing and commissioning.
Erection of ESP & ducting –Unit-1 - work completed. Inspection is in progress.
Erection of ESP & ducting –Unit-2: 98% work completed
Power House: Structural works completed. Fixing of Cladding Sheets is in
progress.
Chimney: Shell completed. Erection of flue Can for Unit-1 is completed and
for Unit-2 is in progress.
General Mechanical works: Raw water & Ash Water Recovery Jack Well,
Approach Bridge and Pipe Line works are in progress.
Plant Water System: works are in progress.
IDCT-1 & 2- Works are nearing completion and 3 & 4 works are in progress.
CHP & AHP : Works are in progress.
Coal Linkage: Ministry of Coal vide letter No. 13016 / 26/2004-CA-I(PL)
dtd:6.9.2013, addressed to the Chief Secretary, Government of Karnataka has
allocated 382 million of tonnes coal to KPCL from Deocha-PachamiDewanganj
– Harinsingha Coal Block in the state of West Bengal, with a total reserve of
2012 million tonnes. The allocated coal is to be used for three projects namely
YTPS (2x800MW), BTPS unit 3(1x700MW) and Edlapur TPP (1x800MW).
2. Bellary Thermal Power Station, Unit-3: (1 x 700 MW)
13

BTPS 3rd unit (1X700MW) is being implemented with Super critical
Technology at the approximate estimated cost of. Rs 4686 crores on EPC basis..
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, for the
amount of `3700 crores for construction works.
Status of construction works on various fronts are as below:
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Boiler and its auxiliaries: Light up achieved on 28.03.2015
EDTA completed on 02.05.2015
Turbine & auxiliaries: Turbine Box up completed. Preparation for steam
blowing is in progress.
Power House: Civil & structural works completed
ESP control room: Civil works completed. HT & LT panels commissioned.
CW & ACW pump house: All the pumps are erected.
CW piping works are nearing to completion
RODM: Commissioning in progress.
Clarified water storage tank & clarified PH: Equipments erected
andCommissioning is under progress.
Ash Handling & Coal Handling System: Works are in progress
Cooling Tower: Shell is completed & fills erection is in progress.
Chimney: Completed
400 K.V Switch yard: All the equipments erected & commissioned. Switch
yard was charged on 26.06.2015.
Coal Linkage: Ministry of Coal vide letter No. 13016 / 26/2004-CA-I(PL)
dtd:6.9.2013, addressed to the Chief Secretary, Government of Karnataka has
allocated 382 million of tonnes coal to KPCL from Deocha-PachamiDewanganj
– Harinsingha Coal Block in the state of West Bengal, with a total reserve of
2012 million tonnes. The allocated coal is to be used for three projects namely
YTPS (2x800MW), BTPS unit 3(1x700MW) and Edlapur TPP (1x800MW).
3. Nagjhari P H - R M & U of Unit - 6
i)Upgradation work of Unit 6 from 135MW to 150 MW is under progress
ii) Conducting model studies of Turbine: -Programmed in the 12th Plan.
4. Additional units at Ghataprabha (20 MW)
GoK has allotted the 2 x 10 MW additional Units at Ghataprabha Dam right
bank canal power house to KPCL vide order No. EN 101 NCE 2010/
21.01.2013.
14
NIT published on 29.05.2013 in the e- procurement portal of GoK. NIT
published in KPCL website and Newspapers.
Pre bid meeting held on 02.07.13.Replies to pre bid queries posted on e - portal
on 24.08.2013.
Last date for submission of bids through e portal is 10.12.2013.NIT issued
cancelled to review the PQR criteria specified. Process of issue new NIT with
revised PQR is in progress.
Revised NIT with new PQR criteria was discussed in the 273rd TC meeting held
on 10.06.2014. PQR is under review.
5. Munirabad P H (10 MW):
M/s. Allonward-SSIPL-KR & CO. CONSORTIUM has furnished various civil/
electrical drawings & comments have been furnished to the firm. Revised
drawings/ documents furnished by the firm is under review.
Spiral casing, Distributor assembly, Guide vane, Runner blade, fixed guide vane,
Draining Stay vane, Special draining stay vane, Runner chamber, stay ring
inspection, stay ring section, stay ring plan, Dewatering & Draft tube filling
system and earth mat for power house drawings are approved.
Manufacture, inspection and test quality plan for turbine, Design calculation for
sizing dewatering pumps and design calculation for earth mat documents are
approved. Generator drawings are under various stages of approval.
QAP and FQP are under review stages of approval.
Drawing- Unit-4 DC distribution and power house DC illumination, AC
distribution board, cooling water schematic, Unit auxiliary panel been approved
Finalizing of sub vendor is under progress Generator erection manual under
review. Engineering drawings pertaining to penstock pipes etc., QAP & FQP
furnished by the firms is under review
Engineering drawings of generator are in final stage of approving.
IX.New and Proposed Power Projects
1. YelahankaCombined Cycle Power Plant:
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Capacity : 350 MW
Cost : Rs. 1571 crores
Annual Energy : 2759MU
Completion : 30 Months from date of LoA.
Allotment: G.O No. EN 28 PPC 2014 dated 28.07.2014
15
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LOI dtd. 14.01.2015 has been issued to M/s. BHEL for supply and services
works
M/s. GAIL to make changes in the GTA entered into on 18.02.2013.is under
progress.
An area measuring 14 Acres 24 Guntas has been handed over to KPTCL for
construction of 220 KV sub-station.
Land to an extent of 102 Acres is available with KPCL.Transfer of
Landrecords (Sale deed) in name of KPCL is in progress.
Clearing of Railway siding yard (which will be utilized for raw water
storage) is in progress by KPCL and it may complete on 1st week of October.
Process of dismantling of all the infrastructure facilities of IOCL is under
progress.
Environmental clearance (EC) is received from State Level Environment
Impact Assessment Authority (SEIAA). Consent for establishment (CFE) of
proposed YCCPP is applied to KSPCB.
Administrative approval for implementation of 1 x 350 MW YCCPP at an
estimated cost of 1571.18 Crores with Debt Equity ratio of 80:20 was
discussed and concurred in 247th Board meeting held on 03.08.2015.
7 Years CT agreement for Bidadi CCPP and separate GTA for 1x350 MW
YCCPP was discussed and concurred in 247th Board meeting held on
03.08.2015.
Detailed Project Report (DPR) for the implementation of the project was
discussed and concurred in 247th Board meeting held on 03.08.2015.
NOC is received from Archaeological Survey of India, Dept. Of Health and
family welfare, Fisheries, BBMP, Airport Authority of India.
NOC from Defence is awaited.
2. Edlapur Thermal Power Station
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Capacity : 1 x 800 MW
Cost : Rs 4960 crores
Annual Energy : 5957 MU
Completion by : 51 months from LoA
Plant will be located inside RTPS compound.
GoK has allotted 3.60 TMC of water from Krishna River for both
Yermarus&EdlapurTPS.
LoI has been issued to M/s BHEL on 25.09.2010 for BTG & other
associated equipments along with civil works.
LoA will be issued after obtaining clearance from MoEF.
Coal: Ministry of Coal,GoI,vide notification dated :06.09.2013 addressed to
the chief Secretary, GoK, has informed that the DeochaPachami coal
Blocks have been allotted to Six States, out of which 382 MT is to KPCL
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for Yermarus TPP (1600 MW), BTPS Unit-3 (700 MW)&Edlapur TPP
(800 MW).
MoEF has been addressed informing of the Coal allotment by MoC and
requesting to expedite the issual of Environmental Clearance to the Project.
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3. Super Thermal PP near GodhnaVillage in Chhattisgarh State
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Capacity : 2 x 800 MW
Cost : Rs 11355 crores
Annual Energy : 11914 MU
Completion U-1 & U-2 : 48 and 54 months from the date of LOA
respectively.
Implementation agreement signed with GoC& Chhattisgarh Power Holding
Co: 29.6.2010.
DPR reports ready.
NOC’s from Airport Authority & Ministry of Defence have been received.
MoEF clearance - Public hearing was held on 29.07.2010.Application filed
with MoEF on 4.9.2010.
Land:
 A total of 1260 Acres of land allotted to KPCL project. 1016.23 Acres of
private land is acquired by Chhattisgarh Government and about 95.00%
disbursement of land compensation is completed.
 Water :1.84 TMC Water allotted by GoC on 16.08.2010; to be drawn from
proposed barrage across Mahanadi river near Sheorinarayan Town Construction of barrage by WRD is under progress.
M/s Power Grid Corporation has granted long term open access for evacuation
of power to KPCL and an agreement has been signed with PGCIL on
06.01.2011 for evacuation of 763 MW of power from Chhattisgarh plant to
Karnataka State. A letter has been addressed to PGCIL regarding rescheduling
the commissioning dates for Unit- 1 & 2.
 Power purchase agreement has been signed with Chhattisgarh Power
Trading Company Limited on 05.01.2011. Transmission service agreement
was signed with PGCIL on 24.01.2013.
 Joint Venture : As resolved by the Board in its 241st meeting dtd.20.9.2014,
the process of entering into a JV with NTPC for implementing the project is
in progress.
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Coal:
17
 Long term coal linkage application for allotment of 11.0 mt pa of coal for 2
X 800 MW Units has been submitted to Standing Linkage Committee (Long
term) on 13.05.2009. All the required details have been furnished to CEA
vide our letter dated 30.12.2011.
 A letter has been addressed to Sri Shailesh Kumar Singh, IAS, Joint
Secretary (LA), Ministry of Coal, Government of India, vide dtd. 12.08.2014
regarding allocation of long term coal linkage / coal block from Ghevera
Mine of SECL, which was earlier allocated to the above two projects, which
would facilitate to obtain MoEF clearance and implementation of the project.
4. Bidadi Combined Cycle Power Plant
 Capacity : 700 MW ± 20%
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Cost : `2500 crores
Annual Energy : 5212 MU
Completion : 30 Months from zero date.
Power purchase agreement entered into with ESCOMS on 18.12.2010
GoK vide order No. EN 78 PPC 2010 dated 05.07.2011 has accorded
approval for establishing first block of Gas based Combined Cycle Power
Plant of 700 + 20% capacity with LNG as the fuel at Bidadi. Accordingly,
the action is being taken.
Land: 152 A 30.5 G and 12 A 37 G - Acquired from KIADB & Irrigation
Department respectively. 15 Acres 12.75 Guntas has been handed over to
Power Grid Corporation for construction of 400 / 220 KV sub-station. 2
acres and 1 gunta of land has been handed over to Gas Authority of India
(GAIL) for construction of gas terminal.
Water: Approval has been received from GoK on 08.06.2012 to draw
required water for the plant from the Byramangala irrigation tank.
Power Evacuation: PGCIL has completed 400 KV Sub- station at Bidadi.
Gas Transportation agreement entered into with M/s. GAIL on 18.02.2013
for transportation of Gas for the power plant.
Gas terminal point of M/s GAIL at BCCP Plant site is completed.
Site grading work in power block area completed.
EPC Tender for 700 MW+/-20% invited through e-portal on 31.07.2013.
Further Hon’ble Court of Karnataka has stalled the process of tender
Compound wall – Already Constructed.
5. Tadadi Combined Cycle Power Plant: (2100 MW)
 Govt. of Karnataka vide G.O.No.CI 222 SPI 2009, Bangalore,
dated.16.11.2009 has accorded approval to establish Gas based “Tadadi
Combined Cycle Power Plant” of 2100 MW capacity.
18
 KIADB has allotted 400 acres of land for the project and possession of land
has been taken over from KIADB.
 The Pre-Feasibility Report has been prepared and action is being taken for
obtaining statutory clearances from various Depts.
 NOC for Airport clearance from Western Naval Command has been
received vide letter
dated: 09.11.2010.
 Approved TOR has been received from MoEF on 23.09.2010.Rapid EIA
report submitted by M/s. SENES consultants India Pvt. Ltd., has been
submitted to KSPCB on 09.11.2011. Public hearing scheduled on
10.02.2012 has been postponed. The concerns of issues raised by KSPCB
have been addressed and KPCL has again requested KSPCB to conduct the
public hearing at the earliest. KSPCB has not agreed to conduct public
hearing and requested KPCL to obtain TOR again from MoEF. Letter has
been addressed to conduct public hearing again.
 Feasibility studies in respect of off shore/on shore LNG terminal completed
and feasibility report prepared.
 Studies related to Coastal Regulation Zone (CRZ) and marine EIA
completed and report prepared.
 Power Purchase Agreement entered with ESCOM’s on 18.12.2010.
6. Gundia Hydro Electric Project – Phase – I
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Location: Hassan/DakshinaKannada Hassan District
Capacity: 200 MW
Annual Energy: 505.40 MU,
Estimated Cost of the Project: Rs.868.73 crores (including IDC),
Commissioning: 52 months from the zero date
Allotment: G.O no. DE 275 PPC 97 dtd.06.10.1998
The proposed GundiaHydel 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 estimated cost of the project is Rs.1126 crores. TechnoEconomic clearance is obtained from CEA on 25-04-2008 for Phase-I (1x200 MW):
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Clearances from various Departments of GoK / GoI have been obtained.
Expert Appraisal Committee of MoEFhas recommended for the
environmental clearance to the project on 30.6.2010, stating that the
ministry may consider the report of WGEEP constituted under the
Chairmanship of Prof. MadhavGadgil before according Environmental
clearance.
Further, MoEF, GoI has constituted a high level working group (HLWG)
under Chairmanship of Dr. Kasturirangan, Member Planning Commission
to review WGEEP report.
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The High Level Working Group (HLWG) has visited the Gundia HEP and
submitted the report, which was accepted by MoEF.
MoEF vide letter dt.12-12-2013 has sought a detailed study report from
KPCL taking into account all the precautions clarifying issues raised in the
HLWG report. KPCL has initiated action for a detailed study report
through Institute of eminence on the issues raised in the HLWG report.
Energy Department was requested vide letter dt.12-02-2015 for further
guidelines on implementation of GHEP, in the light of KNNL- GoK taking
up Yettinahole drinking water project in the same catchment area.
As per the directions of Energy Department vide letter dt.15-04-2015 DPR
for Yettinahole project has been obtained from KNNL and feasibility of
implementing the power project even after taking up Yettinahole drinking
water project was examined.
As per the Yettinahole DPR of KNNL, it has been assessed that a total of
24.01 TMC (679.96 M cum) of water available for diverting to drinking
water purpose. Hence, 18.81 TMC (535.07 M cum) of water required for
power generation is not available.
As most of the water available in the catchment area is proposed to be
diverted for drinking purpose, GHEP will be deprived of water for power
generation even during peak period of monsoon.
In view of implementation of Yettinahole drinking water project by KNNL,
the detailed study proposal sought by MoEF has been deferred.
X.FUTURE SCHEMES OF KPCL
1.Gundia Hydro Electric Project Phase – II-200MW
 NOCs are received from Fisheries Department and Archaeological Survey of
India. Clearance from other departments is awaited.
 It is proposed to take up the Survey and Investigation works and also the EIA
studies of Phase–II after getting the Environmental Clearance for Phase-I.
2. Shivanasamudram Run-of- the River project (345 MW):
GoK has accorded approval for establishing the power plant with an installed
capacity of 345 MW (3 X 100 + 3 X 15 MW) vide G O No. EN 74 PPC 2008,
dated: 07.06.2010.
There is provision for generation of 119.M.U. per annum with 90% PLF and the
total project will be `1522.82 crores.
NOC from Fisheries Department, Department of Health and Family Welfare
Services and Archaeological survey India, Bangalore are received.
20
Approved TOR is received on 31.08.2009 and EIA. Application for allotment of
90 ha of forest land required for the project has been submitted to Forest
Department in Form “A”. Allotment of land is awaited.
Water allotment has been received from Water Resources Department vide letter
dt.29.03.2011.
Detail Project Report (DPR) has been submitted to CEA by GoK vide letter
dtd.30.03.2012 & observations of CEA are being attended.
3. Pumped Storage Schemes:
Two pumped storage schemes (i) Kali (600 MW) and (ii) Sharavathy (900 MW)
have been allotted by GoK. The PFRs of both the schemes have been prepared
and action is being taken for obtaining statutory clearances from various Depts.
NOCs received from Fisheries Dept. and Archaeological Survey of India. FRL
survey work completed except dog bailing work at Sharavathy. Further
investigation works are stopped due to local protest and for want of permission
from Forest Department. The same is held up in Kali as DCF, Yellapura turned
down the request of KPCL for permission to go ahead with the survey and other
investigation works, quoting a letter from GoI informing that the permission for
Kali, Kodasalli works are being considered with a condition that no further
developmental works are permitted in the Kali river basin. At present the
investigation works are stopped.
4. Thattihalla Augmentation Scheme:
This is a diversion scheme to Thattihalla Dam. Due to local agitation the project
could not be taken- up.
5. Gangavali Stage-II Scheme: (400 MW):
On behalf of CEA, Pre- feasibility report is prepared and submitted to them.
6. Bedthi (400 MW), Aghanashini (600 MW) and KHEP - Stage-III (300
MW) Hydro Electric Projects:
GoK vide ltr.dtd.03.07.2007 informed KPCL to take up the survey work for
preparation of DPRs. KPCL in ltr. dtd. 29.10.2007 informed CEA that the cost of
preparation of DPRs of Gangavali Stage II and Aghanashini Hydro Electric
project is Rs 870.00 lakhs &`775.00 lakhs respectively. Further, it was informed
that the DPR in respect of Kali Stage III could not be taken up as this project is
within the wild life sanctuary.
7. Mahadayi Hydro Electric Project: (200 MW)
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 Detailed Project Report prepared during the year 2002 has been submitted to
CEA for Techno-economic clearance. CEA has sought to settle the inter-state
dispute for further scrutiny.
 A Tribunal has been formed by GoI for solving the inter-State water dispute
between Karnataka, Goa& Maharashtra
 Forest Department has issued notification for “Bhimaghad Wild Life
Sanctuary”. The original proposal as per DPR 2002 cannot be considered as
the proposed location of H, Power house etc., comes under Wildlife
Sanctuary. A revised proposal is being worked out by KPCL in this regard.
 Detailed field surveys have been taken up for the revised DPR. However, on
15.10.2013 a Project report based on Topo sheet and available field data has
been submitted to WRDO, Bangalore, for submitting to Mahadayi Tribunal.
8.Wind Energy Projects:
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 MOU, up to 11.01.2015 has been communicated to
the General Manager (REDG) / NTPC Ltd., New Delhi on 17.07.2012.
 Guledagudda Wind Energy 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.
M/s. C-WET, Chennai have advised M/s. NTPC Ltd., New Delhi to take up fresh
Wind Power measurements at Guledagudda Hill Ranges. Accordingly, M/s.
NTPC Ltd., New Delhi have arranged for installation of 80 mtr.tall Wind Mast
and commenced Wind measurements at the site on 17.05.2012. The wind
potential measurements have to be carried out for a total period of two years.
 Kappatagudda Wind Energy 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. Amended G.O. is awaited
from Ministry of Energy / GoK.
 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
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Itnal Village of Chikkodi Taluk. The wind pattern studies have been carried out
for a total period of two years and M/s C-Wet Chennai; have now forwarded the
final report on the studies carried out. Reminders have been sent to DCF/Gadag
seeking Clearance for taking up Wind Resources Assessment (WRA) studies at
Kappatagudda Hill ranges (New Area).
XI. Consultancy and Engineering Services Department [CESD]
The total earning from Consultancy Services as on March 2015 is Rs.1052.35
lakhs. The Consultancy works in progress are as follows:
 NTPS Hydro Ltd., Rammam Stage –III HEP in West Bengal State
 Various lift irrigation schemes of KBJNL
 Kalasa and BandurNala Diversion Schemes of KNNL
 KUWSDB, Mangalore
XII. Management of Coal
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 2014-15 was 83.676lakhs MT as per actuals. The
specific coal consumption was about 0.756 Kg/Kwh. The coal receipt details
are as under:
Qty. in Lakh MT
Sl.
No.
I
2
3
4
5
Source
Coal Receipt
SCCL
WCL
MCL
Imported Coal
Captive coal block of KPCL
Total
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27.477
27.661
19.816
8.584
0.138
83.676
B. Coal for BTPS
a) BTPS Unit-I (1 x 500 MW):The 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) was developing the coal mines and
supplying coal to BTPS.
The Hon’ble Supreme Court of India vide order dtd. 24.09.2014 cancelled the
allocation of Baranj I to IV, Kiloni and Manoradeep coal blocks and allowed
mining upto 31.3.2015 only. As part of the investigations into the alleged
irregularities in the allocation of coal blocks by GoI, the Central Bureau of
Investigation has initiated proceedings against the JV Company, and JV partners
including KPCL in respect of certain operational issues.
KPCL again applied for and got allotted the same coal blocks by the Ministry of
Coal, GOI under the Coal Mines (Special Provisions), Act, 2015. The Allotment
Agreement was executed with the Nominated Authority, MOC, GOI and
Allotment Order has been issued to KPCL on 31.3.2015. KPCL has taken steps
for obtaining necessary clearances and permits from the concerned authorities.
KPCL proposes to invite tenders for appointment of new Mine operator and has
availed the services of M/s SBI CAPS for preparation of tender. Tender process
is initiated.
In order to ensure the coal availability to the Units and to continue the
maintenance of mines and extraction of coal for generation of power, with the
approval of the Govt. of Karnataka, the services of M/s EMTA Coal Limited has
been availed as the Mine operator upto 31.12.2015 or till appointment of the next
MDO whichever is earlier.
b) BTPS Unit-II (1 x 500 MW):Coal requirement is about 7000 MT per day for operation of the Unit-II. The
coal requirement was to be met from the enhanced coal production at the Baranj
I to IV, Kiloni and Manoradeep captive coal blocks. The revised mining plan for
the Integrated Baranj OCP was approved by Ministry of Coal during 2011 for
enhancing the production target to 5.0 million tonnes per year from the existing
2.5 million tonnes per year to meet the coal requirements of BTPS Unit-2, which
required about 60 months from the date of approval i.e. 24.08.2011.Till the
commencement of enhanced production, the supply of coal has been provided
through tapering linkage facility from MCL on MoU basis.
In the 15th EAC (Thermal & Coal Mining Projects) meeting held on 27th& 28th
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June 2014, it has been recommended for enhancing the production of the coal
from the captive coal mine by additional 50% of the existing capacity of 2.5
million tonnes per annum and the coal shall be utilized for BTPS Unit - 2.
However, a letter dated 23.12.2014 has been received from MOEF stating that
file of the subject proposal has been closed and delisted from the pending list in
view of the cancellation of the coal blocks (Sl.No.142 to 147) notified in The
Coal Mines (Special Provisions) Ordinance, 2014.
C. Coal for New Projects:
Ministry of Coal vide letter No. 13016/26/2004-CA-I(PL) dtd: 06.09.2013, has
allocated 382 million tonnes of coal to KPCL from Deocha-Pachami,
Dewanganj-Harinsingha coal block in the state of West Bengal, with a total
reserve of 2012 million tones. The allocated coal is to be used for these projects
namely YTPS (2 X 800 MW), BTPS unit 3 (1 X 700 MW) and Edlapur TPP (1
X 800 MW).
In view of limitations in developing the block, (as the coal block is jointly
allocated and is facing the problem of huge over lay of black stone), coal
production can be expected to start only after a period of 8 to 9 years.
a) Bellary Thermal Power Station Unit-3
 MoU with M/s MCL has been entered into for the new Unit of 1x700 MW
for a quantity of 1.797 million tones and this is valid initially for 2014-15
and Direction from MOC/CIL to MCL regarding extention of MOU based on
the revised COD date, is awaited.
 The Director (OM), CEA, vide letter no. CEA/Plg/OM/ 1/1/2015/358-66 dtd.
04.03.2015, has directed the Chairman, CIL to give necessary directions to
the concerned coal company (MCL) to supply 2,00,000tonne of coal for
startup, trial run, commissioning COD etc. Direction from MOC/CIL to
MCL is awaited.
b) Yermarus Thermal Power Station
 The process of signing of MoU with M/s WCL is under process.
 Direction from MOC/CIL to WCL regarding execution of MOU based on the
revised COD date, is awaited.
 The Director (OM), CEA, vide letter No. CEA/Plg/ OM/1/1/2015/358-66
dtd. 04.03.2015, has requested the Chairman, CIL, that the concerned coal
company (WCL) may please be advised to supply 2,00,000 tonne coal for
start-up, trial run, commissioning COD etc. Direction from MOC/CIL to
WCL is awaited.
25
b) Godhna Super Thermal Power Station
Long term coal linkage application for allotment of 11.0 mtpa of coal for 2 X
800 MW Units has been submitted to Standing Linkage Committee (Long
term) on 13.05.2009.
Participated in coal block allocation for securing allocation for Godhna
Thermal Power Project, Chhattisgarh and the Ministry of Coal, GOI, has not
allotted any coal blocks for Godhna Thermal Power Project, Chhattisgarh.
XIII.Evacuationof Fly Ash from RTPSandBTPS - Environment Protection
measures:
RTPS:
KPCL has entered into agreements with end-users of fly ash for 100% evacuation
and utilization of fly ash from RTPS.
KPCL is issuing fly ash free of cost to SSI units as per MoEF stipulation.
During2014-15, due to breach of contract, KPCL terminated the agreement with
M/s VicatSagar Cement (P) Ltd., for Unit # 7. The Hon’ble High Court has
stayed the termination order. Hence, M/s VicatSagar Cement (P) Ltd., is allowed
to continue to lift fly ash from Unit # 7.
During2014-15, due to breach of contract, KPCL terminated the agreement with
M/s Lafarge India Pvt. Ltd., for Unit # 8. Meanwhile, interim arrangement for
evacuation of ash has been made by site. KPCL has invited tenders for issue of
fly ash from RTPS unit No.8 which is likely to be finalized by Aug/Sept
2015.Quantity of fly ash lifted by agencies and SSI units during 2014-15 is as
under:
Qty in Lakh MT
Sl. No.
1.
2.
3.
4.
5.
Agency
M/s.ARV Cement Society
M/s.Vicat Sagar Cement Pvt. Ltd.
M/s.Lafarge India (P) Ltd.,
SSI Units
Private Agencies
RTPS Unit Nos.
1 to 6
7
8
Total
Quantity
9.261
0.998
0.156
1.289
0.143
11.848
During2014-15, total production of fly ash was 23.95 lakh MT out of which
reclaimable fly ash was 21.56 lakh MT. The quantity of fly ash lifted was about
26
11.848 lakh MT and the fly ash utilization is 54.96%. The average ash content of
the coal supplied to RTPS was 35.97%.
BTPS:
KPCL has entered into agreements with end-users of fly ash for 100% evacuation
and utilization of fly ash from BTPS.
The contract for lifting of fly ash to the extent of 5 lakh MT per annum @
Rs.469/MT (exclusive of taxes) from Unit-I was awarded to M/s Rain Cement
Ltd., Hyderabad and contract entered on 14.5.2009. For Unit-2, the contract for
lifting of fly ash to the extent of 5 lakh MT @ ` 240/MT (exclusive of taxes) was
awarded to M/s UTCL, Tadapatri, A.P and the contract entered on 22.7.2011.
The quantity of fly ash generated and lifted for the year 2014-15 is as detailed
below:
(Qty in lakh MT)
Sl.
No.
1.
2.
Agency
M/s Rain cement
Ltd, Hyderabad
M/s UTCL,
Tadapatri
BTPS
Unit
no.
Ash
Ash
Generated Utilization
Ash
Utilization
(in %)
1
4.48
3.03
67.63
2
5.17
2.76
53.38
9.65
5.79
60.0
Total
The utilization of ash from Unit-1 & 2 for the year 2014-15 is 60%.
XIV. Conservation of energy, Research and Development, Technology
absorption, Foreign Exchange Earnings and Outgo [as required under Rule
83 of Companies (Accounts) Rules, 2013]:
A) Research and Development:
 Testing of transformer oil for condition monitoring has been done by utilizing
mobile testing facility of CPRI, Bangalore.
 Incorporating updated protection scheme for line protections i.e., Main and
Backup protection system of different operating Principle /different
manufacturers.
27
 400kV shunt reactor installation work in progress at RTPS for curtailment of
high voltage during off peak hours
 Establishment of 500MVA, 400/220/33KV Inter connecting Transformer to
enable shifting load between 400/ 220KV lines.
 Strengthening of column structure of conveyor 31 At CHP area of RTPS.
 Establishment of on- line ambient air quality monitoring stations.
 Establishment of Generator protection with Numerical relays for Unit #4 and
RTPS-BTPS 400kV line
 Establishment generator excitation system with digital AVR for unit no.5
 Electronic controllers in Unit-1&2 retrofitted with latest version in order to
reduce stack emission
 Strengthening of structure and galleries of conveyor9A2/B2, 12A/B, 13A/B and
erection and commissioning of two Nos. of secondary crushers.
 Station C&I of Unit No.2
 TG C&I of Unit-1&2
 Installation DG set with CPCB-2 norms – in progress for Unit-1 & proposed for
Unit-2.
 Establishment of Generator protection with Numerical relays for
Munirabad&Mehaboob Nagar 400kV line and for all 220kV line
 Retrofitting of generator excitation system with digital AVR for unit no.6 during
2015
 Supply & Installation of On-line Stack Emission Monitoring System for Unit1,2,3,4,5 &7
 Supply & Installation of On-line Effluent Monitoring Systems
 Providing of microprocessor based intelligent addressable Fire Alarm system for
Units-1&2
 Providing UF – RO system
 Retrofitting of microprocessor based controllers in place of analog type
controllers for ESP for efficient fly ash collection and to achieve statutory limits
of KSPCB for Unit-3
 Providing Energy efficient LED lighting
 Up-gradation of 220KV & 400KV Circuit Breakers & Current Transformers to
higher rating.
 Up-gradation of UGD system at RTPS colony
 Additional water supply scheme works to colony
 Augmentation of Ash bund-2
 Cooling tower and RCC Chimney retrofitting works of Unit1&2
 Construction of CISF campus in RTPS Colony
28
 Construction of store cum workshop for HT motors at RTPS
 Assessment of soundness of cooling tower No.3 and 4
 Raising of embankment for approach arrangementto YTPS 2x800 MW recovery
ash water jack well pump house on peripheral bund of Ash Pond-2 at RTPS
 Improvement to intake road from ARV silo up to Karekal bridge Railway under
pass at RTPS
 Formation of CC Road for transportation of mill reject between coal Bhavan to
mill reject yard
 Providing and fabricating and erecting north light structure over TG bay roof for
Unit-1 to 8 at RTPS
 Construction of pipeline from Girijapura Barrage to intake well
B) Benefits derived as a result of above R and D:
 Prior intimation on impending problems, if any, in the critical transformers by
mobile oil testing.
 Improved protection/analysis of ODY & transmission equipments by numerical
relays.
 Higher PLF by improved load sharing due to additional ICTs.
 Better compliance to Environmental norms by retrofitting ECs, emission
monitoring devices etc.
 Better control over the boiler so as to operate at optimum level.
 Maximizing the generation due to improvement in condenser vacuum due to
reduction of scale formation on account of supply of clarified water
 Increase the remaining life of ash pond in view of augmentation of Bund-2
 To increase the remaining life of cooling tower and chimney of Unit-1 & 2
 The RCC columns are protected against the impact of Dozer and high
Temperature in the coal pile around the columns.
C) Technology absorption, Adaptation and Innovation:
 Reduction in Auxiliary consumption and improvement in heat rate is being
constantly given priority.
 Energy audit was conducted by CII (Confederation of Indian Industries,
Hyderabad). 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.
 Maximum utilization of fly ash has been given top priority.
 Base line energy audit has been carried out by CPRI and implementations of
recommendations are under progress like energy saving, etc.
 Replace existing Lighting with Energy Efficient LED lighting.
29
D) Foreign Exchange (In `):
a) Foreign exchange earnings
-
NIL
b) Foreign exchange outgo:
i) Capital Goods
- 117,61,87,072
ii) Raw materials (Coal)
- 534,17,73,034
iii) Delegate fees- NIL
Total:
-651,79,60,106
XV.Management Initiatives for Improvement
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 2014-15, 37 In-house training programmes were conducted and
21 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.
1
2
3
4
5
6
7
8
9
10
11
Name of the Programme
Positive mental Attitude/Team building/Speaking Skills/ Time Management
& Leadership
O&M of EHV Station Equipment
Team work & Team Building
Physical Fitness & Good health habits
Cost Management in Power Sector
L T Power Maintenance
Emotional Intelligences
Performance Improvement Through Personality Development
Balancing Imbalance in Life
Attitudinal Changes
Turbine Generator Switchgear Transformer in Hydro Power Station
30
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Black Start Restoration Procedures
Time & Resource Management
Lean Management for Productivity Enhancement
Effective Communication Skills
Enthusiasm in life/Goal Setting/Conquer the world through Smile
Dual Responsibility Home & Office for Women
Corporate Communications and organizational Development
Excellent in Project Management is the key to Corporate Success
Refresher Training Programme to the Internal Audit Staff
Problem Solving & Decision Making
Interaction of salary Package with CSD
Tax Management
Effective Team Work
Hydro Electric Role in the Power System
Latest Trend in Solar and Wind Technology
Energy Conservation & Audit
Going Beyond the Circumstances
Earthing Theory and Designing
Electrical & Electronic Safety
Human Resource Management System
Anger Management for Better Work and Health
IEGC Awareness
Information for Transformation
Hosting of Workshop on Latest S+DCS System, Solutions for Hydro Segment
Plant optimization, Cyber Security Generator Protection Relay Etc.,
Generation Software for Hydro Projects
Anger Management For Better Work and Health
(b) External Trainings
Sl.
No.
Name of the Programme
1
Bulk utilization of fly ash
Power System Protection relays and application of numerical relay
2
Technology
3
Transformer oil testing & maintenance including filtration aspects
4
Testing Transfer Oil
5
Control values and accessories
6
2nd International conference on “Innovation & Best Practices in
31
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Transformer Design Testing and Maintenance”
Role of Instrument Transformer in Power System
Generators and motors selection Maintenance and Protection
Effective Team Management
Efficiency Improvement Measures in Thermal Power Station
Power Purchase Agreement
Simulator Training Programme
Advanced Techniques for Hydrological Investigation
Karnataka CMS Convention
Workshop on Residual Life Assessment of Power Plant Components
Hydro Electric Power Plant Efficiency Measurement & Monitoring
An Art oriented Programme “Celebrating the Work”
Water and Waste Water Management
Testing of Transformer Oil
Enhancing profits through efficient operation, Maintenance & Energy
management of Boiler systems
3rd conference on “Critical Nursing”
ii) Career Growth
On implementation of career growth scheme, employees were upgraded/redesignated during the year as under:
To the level of EEs &Eqv.
To the level of AEEs &Eqv.
To the level of AEs &Eqv.
To the level of AAOs & OMs
Workmen levels
111
26
68
27
325
iii) Deputation to foreign countries
There were no deputation of officials to foreign countries during the year
iv) Deputation of employees to other organizations
The services of the employees of the Corporation are sought by GoK and other
Organizations. During the year, services of 18 Engineers were spared on
deputation basis to other organizations.
XVI.Employees Strength
Particulars of employees
Total strength **
As on 31.3.2015
5243
32
As on 31.3.2014
5552
Corporate
2280
2412
Workmen
2960
3137
Deployment on Construction &
463
568
Erection
Deployment on O & M
3081
2691
Deployment on auxiliary service
1696
2290
Entry of employees
106
107
Exit of employees *
374
417
Exit of employees under VES
09
Nil
SC employees – in percentage
17.21%
16.41%
ST employees – in percentage
3.75%
3.64%
Handicapped employees in percentage
0.80%
0.73%
Ex-servicemen
0.55%
0.55%
Man/MW ratio
0.80
0.85
* Employees Retirement/VR/Resignation/Expired taken from
01.04.14 to 31.03.15
** Including 3 employees of erstwhile VVNL on 31.03.2015
Break up in Corporate Cadre
Engineering Professionals - 1868 Other Professionals -
412
XVII.Public Deposits
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.
XVIII.Auditors
(i) Statutory Auditor:
The C&AG have appointed M/s Suri& Company, Chartered Accountants, as the
Statutory Auditors for the year 2014-15. The auditors visited all accounting units,
verified the records, obtained explanations and finalized the audit work in a
reasonable time.
(ii)Internal Auditors:
External Chartered Accountants were appointed during the year 2014-15, in order
to strengthen the Internal Audit at RTPS, BTPS and Hydro stations.
33
(iii) Cost Auditor:
Government of India has introduced cost audit for Generation Companies from
financial year 2005-06. The Company has appointed M/s NS& Associates, Cost
Accountants as Cost Auditors for the year 2014-15. 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.
(ii) Secretarial Auditors:
M/s K Narayana Swamy& Co., Company Secretaries were appointed as
Secretarial Auditors to carry out the Secretarial Audit for the year 2014-15
pursuant to Section 204 and the applicable Rules (Appointment and Remuneration
of Managerial Personnel) of the Companies Act 2013. Report of the Secretarial
Auditors is enclosed as Annexure B. The auditor has observed the need for
appointment of independent and woman directors which have been since effected
by the Government of Karnataka.
XIX.Review by the Comptroller & Auditor General
Comments on working results of the Corporation by the Comptroller and Auditor
General of India are received and placed as Annexure C.
XX.Particulars as per Companies (Particulars of Employees) Rules 1975
and as amended
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.
XXI. Subsidiary Company and allied activities
The Corporation has a Subsidiary Company viz. KPC Bidadi Power Corporation
(Private) Ltd. which has been established to implement the combined cycle project
at Bidadinear Bangalore as a joint venture. Statements as required under Section
129 of the Companies Act 2013 is appended.
XXII. IT and Computerization
The Corporation has taken a number of IT initiatives to meet its business
commitments. Some of the IT activities/infrastructure are as detailed below:
1) Hardware platform: Provided Blade Servers and Rack Servers with windows
2008 at corporate office and projects. Provided Core to Duo/i3/i5 PCs with
Windows 7/8 and MS office 2010/2013 software and printers up to the level of
Executive Engineers and all critical users at corporate office and projects.
2) Connectivity: Established; OFC connectivity between all major power houses
and office complex, Local Area Network and Wide Area Network through
34
MPLS/MLLN circuits of BSNL at corporate and major project offices. 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.
c) Bank Guarantee Management System.
d) Cash & Compilation Management System.
e) Fixed Asset Management System.
f) Salary & Pension.
g) Provident Fund.
h) Generation Management System
i) Plant Monitoring System.
j) Drawing Management System.
k) Human Resource Information System.
l) Disciplinary Proceedings System.
m) Training System.
n) Hospital Management System.
o) Management Information System.
p) Inward and outward.
New Initiative: Corporation has taken new initiative to move from island and
disparate software to develop and implement in house Enterprise Resource
Planning (ERP) system. In this direction, teams have been formed to address user
requirements of software on three broad categories viz, Technical, Finance &
Accounts and Human Resource. Necessary steps would be taken to integrate
Inventory, Generation, Finance& Accounts and Human Resource software to
bring on a single common platform to avoid redundant data entry and to generate
reports online.
4) Website: Redesigned the Website in bilingual (English and Kannada) and
provided new links for Joint Ventures, Tenders awarded, Media center, National
training center for solar technology, uploading of tenders from all project sites
and Bengaluru offices, etc.
5) 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.
6) 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 project sites as per KTTP Act.
35
XXIII.Extract ofAnnual Return
Extract of Annual Return of the Company in Form MGT 9 is annexed herewith
as Annexure D to this Report.
XXIV.Corporate Communications








Various publications have been brought out
Media Relations: Maintaining goods report with print & Electronic media,
newspapers have published good articles on KPCL progress
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 newspaper 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
XXV.Important Events
30.04.2014
05.05.2014
02.06.2014
12.06.2014
17.06.2014
28.06.2014
30.06.2014
01.07.2014
02.07.2014
11.07.2014
16.07.2014
Yadlapur TPS audit methodology meeting held at HO
BHEL & RPCL meeting was arranged in connection with YTPS
KPCL online recruitment was inaugurated for filling the
vacancies of Assistant (Accounts/Admn)
240th KPCL Board of Directors Meeting
Dr. BR Ambedkar 123rd Birth Day celebration held at Bangalore
Letter of Award (LOA) issued in favour of BHEL for the
implementation of the 10 MW Solar PV Power Plant at
Belakawadi, Shivasamudram, Mandya District
Shri Ritesh Kumar Singh, IAS posted as MD/KPCL in place of
Shri MR Kamble IAS
BTPS Unit-3 Progress review meeting held between BHEL &
KPCL
Diploma Engineers Association Meeting was held at trade Centre
with KPCL Management
RTPS/KPCL Employees Union Office bearers and KPCL
36
20.07.2014
21.07.2014
20.09.2014
15.09.2014
9.10.2014
25.10.2014
27.11.2014
22.12.2014
06.01.2015
06.01.2015
07.01.2015
14.01.2015
15.01.2015
26.01.2015
26.02.2015
13.03.2015
26.03.2015
Management meeting was held at HO KPCL
KPCL 45th Foundation Day Celebration held at Bangalore
Bidadi project co-ordination meeting held at HO
241st KPCL Board of Directors Meeting
Sir M Visvesvaraiah birth day Celebrated
Shri M MaheshwarRao,IAS posted as MD/KPCL in place of Shri
Ritesh Kumar Singh IAS
A cheque dated 25.10.2014 for Rs.34,06,96,860/- towards
dividend for the year 2013-14 handed over to GOK
Kannada Rajyothsavacelebrated at HO
242nd KPCL Board of Directors Meeting
Execution of loan documents with M/s. PFC Green Energy
Limited for availment of loan of Rs.50.53 crores for the
implementation of 10 MW solar PV Power Plant at Belakawadi,
Mandya District.
243rd KPCL Board of Directors Meeting
Joint Venture Agreement executed with 6 States for the
Development of the DeochaPachami Coal Block for supply of
coal to Yeramarus TPS, Edlapur TPS and Bellary TPS Unit – 3
Letter of Intent (LOI) issued to BHEL for the implementation of
350 MW Gas based CCPP at Yelahanka
Highest RTPS Generation of 41.328 MU at a PLF of 100.10%
Republic Day Celebrated at HO
244th KPCL Board of Directors Meeting
Highest Thermal Generation in a day of 63.788 MU(Gross)
245th KPCL Board of Directors Meeting
XXVI.Directors’ Responsibility Statement:
Pursuant to Section 134(5) of the Companies Act, 2013, the directors wish to state
that to the best of their knowledge:
i. in the preparation of the annual accounts, the applicable accounting standards
had been followed along with proper explanation relating to material
departure;
ii. accounting policies have been selected and applied consistently and made
judgments and estimates that are to be 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 pre-operative expenses of the company for the period;
iii. proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act
37
iv.
v.
vi.
vii.
viii.
for safeguarding the assets of the company and for preventing and detecting
fraud and other irregularities;
internal financial controls have been laid down that are adequate and are
operating effectively;
Proper systems to ensure compliance of all applicable laws and that such
systems are adequate and are operating effectively;
Annual accounts have been prepared for the financial year ended March 31,
2015 on a going concern basis;
Internal controls have been laid down to be followed by the Corporation and
such internal controls are adequate and were operating effectively; and
Systems to ensure compliance with the provisions of all applicable laws are in
place and were adequate and operating effectively
XXVII.General
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, Secretarial
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,
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, Kotak
Mahindra Bank, Punjab & Sind Bank, KarurVysya Bank, Bank of
Maharashtra, 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;

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.
38
For& on behalf of the Board of Directors
(Siddaramaiah)
Chairman
Place: Bangalore
Dated: 30.09.2015
39