Gr_4 Tata Power

8/10/2019 Gr_4 Tata Power

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Strategic Management-Tata Power Company Ltd(TPCL)and Jindal Power Ltd(JPL)Group 4

1


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Power Sector Value Chain

Generation NTPC Tata Power

Reliance Adani Jindal Power

Transmission PGCIL

Distribution S ! ! ST

NDPL

"# LandAc$uisition

%# Go&tclearances

'# (uel tie u)*# PPA+# ,i-h Ca)ital

"# LandAc$uisition

%# Go&tclearances

'# Ca)ital

"# Ad&erse Go&t

Policies%# Ca)ital'# Losses*# Pil.era-e+# CR/

Challen-es

/a0orPla1ers


3/18

Indian power sector [1/3]Continuous energy shortages : May continue given the low percapita consumption of electricity in India

India su ers from an energy de cit(000 GWhr)9.6% 9.9% 11.1% 10.1% 8. % 8. % 8.!%

"ner#$ de and "ner#$ &'pp $ % e*icit

Capacity addition better than expected in recent years

Low per capita consumption of electricity (+Wh),anada 16- 06

& 13- ! 'stra ia 10- 1

2apan !-8 !rance !-318

Ger an$ !-0834'ssia 6- 33

+ - 18,hina 3-31

Wor d -9335ra i - 1India 91!

&o'rce7 I" - +e$ Wor d &tatistics 011 (4oW)- ," (India- 01 13)

90-000 96. % 3.8%

!0-000

0-000

30- 38

!. % 1. % 88.1%

6 -3!-96

0- 1-110

1 0.0% ar#et ,enter : &tate chie;ed ,entre : &tate

100.0%(In GW)

80.0%

60.0%

0.0% 0

ar#et 11 >1 >13 1 th i;e chie;e ents>ear < an *ro pr?1 ti( >1 1!) @o;?13 d'rin#

1 th p an

% chie;ed =W as % o* ar#et Capacity addition for 1 th !ive "ear #lan on target&o'rce7 ,"

$

Ca)acit1 addition b1 )ri&ate )la1ers hasincreased 2 ma0or contributor in achie&in-

the tar et in "" th lan


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1. &che e to restr'ct're short teriaAi ities o* ar#e oss aBin# &"5?s.

5anBs wi resched' e the repa$ ent o*0% o* the short ter oans A$ #i;in# aoratori' o* three $ears. or the

Aa ance 0% o* the eCpos're- the &"5swi iss'eAonds #'aranteed A$ the respecti;e state#o;ern ent

. &"5s are reD'ired to wipe o't their de*icitwithin the neCt 3 $ears

3. Iss'e o* =ode &tate " ectricit$istriA'tion =ana#e ent A$ the nion

Go;ern ent. 4esponsiAi it$ o* *inancia :operationa t'rnaro'nd and on# ter

s'stainaAi it$ o* p'A ic distriA'tionco panies to Ae on state #o;ern ents

. &tate #o;ern ents a owed their &"5s toapp $ to state re#' ators *or tari** hiBes.&ince 011- state re#' ators ha;e Grad'ared'ction in : osses7 o;er the ast 10$ears a;era#e : osses ha;e red'ced*ro 3 % to %.

%

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

Indian ,istorical T2D loss56 o.out)ut7

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+"3"43"+

"3"43"+

"3"43"+"3"43"+

vement in nancial and operational performance of &'(s )1* through distribution reforms

+,- ). of o/p*losses by country ) 01 *

&o'rce7 ," - Internationa "ner#$ ssociation@otes7(1) &"5s7 &tate " ectricit$ 5oards- : 7 rans ission and istriA'tion( ) ata *or India is *or > 01 whi e *or other co'ntries is as o* ec 011

(inancial )er.ormance o. S !s are a ma0orthreat to )ower -eneratin- com)anies

re&enue sellin- )ower to S !s

Indian power sector [ /3]


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a currently has and is pro ected to have a de cit in coal with the shortfall being met by imported coal

1/12/1% 1/12/1%1/12/1%

1/12/1%1/12/1%

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+ "3"43"+ "3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+

"3"43"+ "3"43"+"3"43"+

E In India- coa Aased power p ants acco'nt *or 9% (1) o* the insta ed

#eneration capacit$.

E ear < an ( 01 01!)@otes7 (1) as o* ece Aer 013 ( ) *or the $ear 010 11

Coal im)ort is increasin- but due to a))reciation o. dollar and )olic1 chan-ein Indonesia Power )roducers ad&ersel1 e8ected 5Coal Prices increase7

Indian power sector [3/3]


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5rie* ;er;iew o*


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(inancial 5"3%7

=%===*===E===


8/18

(inancial 5%3%7

==#+

""#+

%%#+

''#+

*

=#*%=#*+=#+'

=#++=#* =#*4

=#+ =#+4=#E+=# +

TPCL JPL

D3 Ratio

Industr1a&era-e is

"#%=

"# Tata Power mar et share in )ower

business is H


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Transmissio

n

E It has 8 +=s o* tra sissionine *ro its p ant to the

nearest


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Model Capacity . of overall)M4* capacity 5eturns 6pside +ata #ower #ro ects 7 8ta9e counterparty

Regulated returns 3,425 40%

Regulated tariff mechanism 465

5%

(renewables)

iCed ret'rn on eD'it$

iCed tari** N


13/18

Tata Power is aimin- .or %E=== /> b1 %=%=

"3"43"+

"3"43"+

"3"43"+

1/12/1%

1/12/1%

"3"43"+

"3"43"+

"3"43"+

"3"43"+

E Post %==* to %="' com)an1e ecuted se&eral )ro0ectswithin time and bud-et#

E The1 e ecuted these )ro0ectson their own#

7perational'xcellence

'xecutional

'xcellence

ttaining ;rowth

E Till %==* com)an1 o)eratedthe /umbai )lant .or morethan += 1ears#

E The1 carried out its ram) u)on their own to sustain the)er.ormance as well asachie&e !enchmar)er.ormance#

E Gi&en the o)erational 2e ecutional e cellencecom)an1 is )lannin- toe )edite its -rowth strate-1#

E &en loo in- o&erseaso))ortunit1

E Securin- .uel su))l1 5+= /Tcoal )er annum7

E


14/18

TPCLF Attainin- Growth

G r o w t h

/er-er 2

Ac$uisition

It ma1 be a

.uture o)tion

ProductDi&ersi:cation

5!/7

/PP

Ca)ti&e

Re-ulated3Distribution

Joint &entureand Alliances

Da-achu ,1droPower

Cor)oration Ltd#

PGCIL5transmission7@

DVC5-eneration7

Cenner-i Pt1#Ltd#

Global59&erseas7e )ansion

!hutan@ [email protected]


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Renewable ner-1 ? TPCL Vs JPL

E ,1dro Pro0ect? J E/> Pilot )ro0ect onBur et ri&er in Rai-arh

J Plan to le&era-e thise )erience to bid .or

u)comin- ,1dro)ro0ects in Ne)al@,imachal Pradesh andArunachal Pradesh#

E Renewable ner-1? J Plan to set u) +== />

Solar )lant in Ra0asthan J %% /> wind )ower

)ro0ect in /aharashtra#

E ,1dro Pro0ect? J Three )ro0ects o. **/> in /aharastra

J Renewable ner-1? J %4 /> Solar )lants J '4< /> wind )ower

)ro0ect across di8erentstates

"'6 o. TPCL )ower)ort.olio is .rom

renewablecate-or1 and in.uture tar-etin-=6 to %+6 .rom

this cate-or1


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Than ouK


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Gr_4 Tata Power