andhra pradesh power generation corporation ltd Management discussions

ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE REVIEW: The year under review, the power stations of your company generated 32110.09 million units of electricity (Thermal 26566.74 million units, Hydel 5543.36 million units and Wind Nil units) as compared to previous years generation of 33475.26 million units (Thermal 25680.10 million units, Hydel 7795.16 million units and wind Nil units). APGENCOs coal based thermal stations achieved a Plant Load Factor of 86.21% as compared to previous years Plant Load Factor of 86.67% and all India average PLF of 77%. The reduction in PLF for the year is due to backing down of some of the units. Hydro generation in the year under review is 5543.36 MU, as compared to previous years generation of 7795.16 MU due to low inflows to Srisailam & Nagarjunasagar Power Houses. HIGHLIGHTS FOR THE YEAR 2009-2010: a) APGENCO has contributed about 40% of energy to the AP State grid requirement during the year. b) APGENCO has achieved generation of 32110 million units during the year 2009-2010. c) Thermal power stations have achieved highest annual generation of 26566.74 million units surpassing the previous high of 25680.10 million units. d) Thermal power stations achieved 86.21% PLF against All India Average PLF of 77%. e) APGENCO power stations have recorded the highest monthly generation of 2590 MU during March, 2010 since inception. f) Ramagundam Thermal Power Station-B has achieved the highest annual generation of 512 MU during the year 2009-2010, since commissioning of the Unit 1971. g) Unit - 5 of Dr.NTTPS (Vijayawada) has achieved PLF of 98.84% for the year 2009-10 followed by Unit-2 with 95.45% PLF and Unit-1 with 92.79% PLF. h) Kothagudem Thermal Power Station - Stage-V, Unit-2 has achieved 96.15% PLF. EVENTS DURING THE YEAR - NATURAL CALAMITY: In the 1st week of October, 2009 Srisailam Right Bank Power House was inundated and the DT gates of Left Bank Power House were badly damaged due to unprecedented floods to Krishna River and the Company has taken all effective steps and restored generation at Left Bank Power House with in two weeks and at Right Bank Power House in about two months time and averted the major loss and damage to the Plant & Machinery. DIVERSIFICATION OF ACTIVITIES: APGENCO is providing O & M services to 272 MW Vijjeswaram Gas power station of APGPCL and 4 x 18 MW AMRP Lift Irrigation Scheme of Irrigation Department, Government of Andhra Pradesh. APGENCO is also providing consultancy services to power projects of other organization viz. M/s SCCL, and lift irrigation schemes of Irrigation Department of Government of Andhra Pradesh. AWARDS: a) APGENCO bagged The India Power Award-2009 instituted by Council of Power Utilities and KW Conferences Pvt. Limited for overall Utility performance in Thermal Stations and received the Award at New Delhi in the presence of Sri Bharatsinh Solanki, Honble Minister of State for Power, Government of India on 17.11.2009. b) APGENCO bagged National Meritorious Performance Award - Bronze- instituted by Ministry of Power and received from Sri Sushilkumar Sinde, Honble Minister for Power, Government of India on 29.01.2010 for Dr.NTTPS (Vijayawada) for the year 2008-09. CAPACITY ADDITION: 1. Kakatiya TPP Stage-I (1X500MW) has been synchronized on 31.03.2010 and achieved full load on 27.05.2010 and commercial operation declared on 14.09.2010. 2. Dr.NTTPS -Stage-IV (1X500 MW) has been synchronized on 6.4.2009 and successfully achieved 511 MW on 8.10.2009. Commercial operation declared on 28.01.2010. ONGOING PROJECTS: a) Thermal Projects (1310 MW): 1. Kakatiya TPP Stage-II -600 MW 2. Kothagudem TPS Stage VI -500 MW 3. Rayalaseema TPP Stage III Unit 5 -210 MW b) Hydro Projects (577 MW): 1. Priyadarshini Jurala HEP (6x39.5 MW) (4 units commissioned) -158 MW 2. Pochampadu HEP Unit 4 - 9 MW 3. Nagarjunasagar Tail Pond Dam PH (2x25 MW) - 50 MW 4. Pulichintala HEP (4X30 MW) -120 MW 5. Lower Jurala HEP (6x40 MW) -240 MW Projects at development stage (8342 MW): 1. Rayalaseema TPP Stage IV Unit 6 -600 MW 2. Integrated Gasification Combined Cycle Plant (IGCC) -182 MW 3. Sattupally TPS -600 MW 4. Polavaram HEP (12x80 MW) -960 MW 5. Kanaparthy Thermal Power Project -4000 MW 6. Nuclear Power Plant in Kadapa -2000 MW DEPOSITS: Your company has not accepted/renewed any deposits from the public during the year 2009-10. INSURANCE: Your company has insured its assets wherever necessary during the year 2009-10. ENVIRONMENT MANAGEMENT: Your company is pursuing the objective of sustainable power development. Your Company has taken a number of initiatives towards protection of the environment by providing Pollution Control Systems, EPS Control Systems, regular environmental monitoring and judicious use of natural resources. FLY ASH UTILISATION FOR THE YEAR 2009-10: The annual generation of fly ash from the Thermal Power Stations of APGENCO is presently around 86,55,892 M.T. APGENCO is making sincere efforts to improve the ash utilization levels from the thermal power stations. Some of the measures taken are: * Dry fly ash & Pond ash are issued free of cost to all small scale industries and brick manufacturers. * All the thermal power stations are equipped with dry fly ash collection, storage, and dispensing systems except KTPS - O & M. * Brick plants are set up at all Thermal power stations for in-house consumption. * All other promotional measures are being implemented. Ash Utilization particulars - Year 2009-10: Station A B C D E F RTPP 1856618 928309 50 1132974 61.02 Complied Dr.NTTPS 3211000 1605500 50 2100000 65.40 Complied KTPS 1923047 961524 50 15990 0.83 Installation O&M of dry ash collection system in full shape is in completion stage. More ash utilization will be achieved from 2010-11. KTPS 1520327 760164 50 590078 38.81 Not complied. V-Stage Dry ash handling systems are being upgraded. RTS B 144900 72450 50 74200 51.21 Complied A = Total Ash Generation in MT B = Target as per MOE&F Notification dated 03.11.2009, to be achieved by 03.11.2010. - Qty. in MT C = Target as per MOE&F Notification dated 03.11.2009, to be achieved by 03.11.2010. - % D = Ash Utilization (Fly Ash + Bottom Ash) During 2009-10 - Qty. in MT E = Ash Utilization (Fly Ash + Bottom Ash) During 2009-10 - % F = Remarks HUMAN RESOURCES DEVELOPMENT: During the year 2009-10, number of training programmes were conducted to ensure development of the required competencies in general management, power station operation and maintenance, project construction, erection & commissioning and information technology.