Power Sector Future Outlook & Tata Powers Perspective

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Date, Venue, etc..( Arial, Font size 18 ) K. K. Panda Chief CTDS, Corporate Engineering

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Presentation Outline
Highlight of Indian Power Sector Installed Capacity till 11th Plan Growth of Installed Capacity Capacity Addition Target in 12th Plan Capacity Addition Challenges Fuel & Land Issues, Statutory Clearances and Financing

Manufacturers for Main Plan Equipments Manufacturing Capacity of BOP Vendors Engineering Expertise & System Integration
Construction Agencies & Critical Material Skilled Manpower for Construction / O&M Tata Powers Perspective

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Highlights of Indian Power Sector

1,99,887

814
900 800 700 600 500 400 300 200 100 0 Per Capita Consumption in 1950 Per Capita Consumption in 2011 15 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Installed Capacity in 1947 Installed Capacity in 2012 1362

Multi-fold increase in per capita consumption & installed capacity ..... Continued Growth
Per Capita consumption in unit / year and Installed capacity in MW

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Highlights of Indian Power Sector

300 250 200 150 100 50 0 2011-2012 (Actual) 2016-2017 (Projected) Peak Met in GW 2021-2022 (Projected) 500 130 200 1,500 116 937 1,355 283 2,500

2,000

1,905

1,000

858

0 2011-2012 (Actual) 2016-2017 (Projected) Energy Demand in BU Energy Met in BU 2021-2022 (Projected)

Peak Demand in GW

In 2011-12, energy deficit of 9.25% and peak deficit of 10.63%.

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Highlights of Indian Power Sector

Plan wise Capacity Addition
88,537 MW

54,964 MW

21,407 MW

16,422 MW

19,119 MW

21,180 MW

7th Plan Achieved

8th Plan Achieved

9th Plan Achieved

10th Plan Achieved

11th Plan Achieved

12th Plan (Planned)

Total 88, 537 MW Capacity addition is targeted in 12th Plan (20122017) through conventional sources

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Installed Capacity till 11th Plan

RES Diesel 24504 MW 1200 MW 12% 1% Gas 18381 MW 9%

Nuclear 4780 MW 2% Hydro 38990 MW 20%

Coal / Lignite 112022 MW 56%

Coal Hydro Nuclear RES Diesel Gas

Total Installed Capacity as on end of 11th Plan =1,99,877 MW

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Growth of Installed Capacity

Installed Capacity in MW
250000 200000 150000 100000
64112 69915 199877 182680

132329 105456 86337

50000
0
13703 18282 9583 1362 1713 2813 5063

30283 42710 28434

1947

1950

1956

1961

1966

1969

1974

1979

1980

1985

1990

1992

1997

2002

2007

2011

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2012
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Capacity Addition Target in 12th Plan

69800 MW
70000

60000

CENTRAL, 26,182 MW PRIVATE, 46,825 MW STATE, 15,530 MW

50000

40000

30000

20000

10897 MW 5300MW 2539.6 MW

10000

0 COAL GAS HYDRO NUCLEAR

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Capacity Addition - Challenges

Major Challenges are:

Fuel & Land Issues, Statutory Clearances & Financial Closures

Manufacturers for Main Plant Equipments Manufacturing Capacity of BOP Vendors Engineering Expertise & System Integration Construction Agencies & Critical Material

Skilled Manpower for Construction / O&M

Resolution of above issues is critical for meeting the 12th Plan Target.

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Fuel & Land Issues, Statutory Clearances and Financing

Project delays are possible due to:

Non availability of Fuels.

Linkage not available, FSA not signed. Delay in land acquisition. Delay in getting the statutory clearances Delay in Financing

Proactive resolution is above issues for meeting targeted capacity is must.

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Manufacturers for Main Plan Equipments

BHEL L&T-MHI

Toshiba-JSW
Alstom Bharat Forge Ansaldo Gammon BGR Hitachi Thermax Babcock Chinese Suppliers like Shanghai Electric, Dongfang, Harbin Korean Suppliers Russian Suppliers European & US Suppliers like Alstom, Siemens, GE

Many Indian companies through JV routes are developing manufacturing capacity in India for Main Plant Equipments

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Manufacturers for Main Plan Equipments

Boiler Manufacturing Capacity within India (MW/Year) Sl. No. Manufacturer Technology 1 2 3 4 5 6 BHEL* L&T-MHI* Thermax Babcock BGR Energy Hitachi Gammon Ansaldo Doosan Alstom MHI Babcock Hitachi Ansaldo Doosan TOTAL Boiler Capacity 20,000 4,000 3,000 4,000 1,000 3,000 35,000

European, Japanese and US vendors have well established proven technology and are known for quality products. But due to high cost of manufacturing they may not be competitive in Indian market.
* BHEL and L&T-MHI plants are operational. Others will be operational in 2014

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Manufacturers for Main Plan Equipments

TG Manufacturing Capacity within India (MW/Year) Sl. No. Manufacturer Technology 1 2 4 7 8 BHEL* L&T-MHI* BGR Energy Hitachi JSW Toshiba Bharat Forge Alstom Siemens MHI Hitachi Toshiba Alstom TOTAL TG Capacity 20,000 4,000 4,000 3,000 5,000 36,000

Additionally Chinese Suppliers have a combined manufacturing capacity in excess of 100,000MW per annum. With above manufacturing capacity of domestic and international manufacturer, supply of BTG equipments are not likely to be constraints for meeting 12th Plan Target. * BHEL and L&T-MHI plants are operational. Others will be operational in 2013, 2014

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Manufacturing Capacity of BOP Vendors

Sl. BOP Packages No. 1 2 3 4 5 6 7 8 CHP AHP WTP Cooling Tower Chimney CW Pumps FO System Fire Protection System Tentative Requirement of BOP Packages in 12th Plan 65-70 65-70 65-70 65-70 (119 128)* 65-70 65-70 65-70 65-70 No of Vendors

7 6 6 5 3 4 5 7

* No of Cooling Towers in bracket

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Manufacturing Capacity of BOP Vendors

Sl. No. 1 2 3 4 5 6 7 BOP Packages CHP AHP WTP Cooling Tower Chimney CW Pumps FO System Vendors TRF, Elecon, L&T, Tecpro, Thyssenkrupp, Energo, Mcnally Bharat Indure, BSBK, DCIPS, Mahindra, Tecpro, Mcnally Bharat Driplex, Doshi Ion, Ion Exchange, Thermax, Triveni, Acquatech Phaharpur, Gammon, BGR, NBCC, L&T Gammon, NBCC, Simplex KBL, M&P, WPIL, Flowmore Technofab, Unitech, Thermo System, Techno Electric, General Mechanical Works

Fire Protection System

Technofab, Unitech, Agnice, Fire Pro, Thermo System, Vijay Fire, Tyco
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Manufacturing Capacity of BOP Vendors

Limited number of vendors for BOP Packages has led to delay in completion of projects in recent past. We need to: Sensitize the industry for widening the vendor base for BOP Packages. Enhance manufacturing capacity .

Encourage new entrepreneur in these area.

Review the Qualifying requirements for new Vendors. Standardise BOP System Work in hand / Bid Capacity shall find place in tender documents. Use of latest construction methods with mechanised equipments.

Developing BOP Vendors is critical for meeting target of 12th Plan

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Manufacturing Capacity of BOP Vendors

Even in the available vendors, there are concerns regarding their execution capacities, quality and HSE compliance. For available BOP vendors: Web based data base of BOP vendors needs to be developed with all information's viz order in hands, implementation status so that developer can take informed decision during selection of BOP vendors. BOP Vendors shall be rated based on their performance. Training of skilled and semi skilled manpower for BOP needs to be strengthen.

BOP may be ordered on EPC basis.

Engineering & Integration strength of BOP Vendors needs to be enhanced.

Execution of BOP Packages with emphasis on cost, quality, safety and reliability is still a challenge for Indian Power Industry

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Engineering Expertise & System Integration

Availability of Engineering Expertise. Integration Expertise. System Design Consultants Detail Engineering Consultants Concurrent working on 88,000 +MW Project Quality & Safety Compliance

For ensuring timely completion of 12th Plan Projects, large numbers of experienced professionals and consultancy organizations are required.

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Construction Agencies & Critical Material

Availability of construction agencies. Experience of construction agencies for execution of complex fast track projects. Availability of advanced tools and plants. Availability of EPC companies.

Availability of cold rolled grain oriented (CRGO) for transformers.

Worldwide shortage of CRGO steel and shortage of quality CRGO steel in India. Availability of Boiler Quality Plates, alloy steel piping & tubing. Availability of Castings and forgings.

Approx 1.15 Million Ton of CRGO Steel, 70,000 Tons of Forging and Casting, 92,000 Tons Boiler Quality Plates and 6,72, 000 Tones of Tubes and Pipes will be required in 12th Plan.

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Skilled Manpower for Construction / O&M

Shortage of Skilled Manpower in the country. Around 1 million additional skilled supervisors and workmen required for meeting 12th plan target. Training and development of technicians required.

Training institutes with focus on technologies applicable for power projects

needs to be developed.

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Tata Powers Perspective

India's largest integrated power company with a significant international presence. Total installed generation capacity of 8,521 MW in India. Presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. It has successful public-private partnerships in Generation, Transmission and Distribution in India .

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Tata Powers Perspective

Tata Power's Installed capacity 8521 MW
Coal, 6497.5

Gas*, 1028 RES**, 427.27

DG, 121.5

Hydro, 447

* Gas capacity includes NG based CCPP, OCPP, NG Fired Boilers and COG/BFG Fired Boilers. ** RES includes wind and solar.

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Tata Powers Perspective

It is one of the largest renewable energy players in India. Developed country's first 4000 MW Ultra Mega Power Project at Mundra Gujarat based on super-critical technology. Tata Powers Strategic Intent: 26,000 MW Generation Capacity By 2020 4,000 MW of Retail Distribution Business

50 MTPA of Energy Resources

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Thank You

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L&T - MHI
L&T-MHI Boilers Private Limited is a Joint Venture Company between Larsen & Toubro Limited (L&T), India and Mitsubishi Heavy Industries Limited (MHI).

L&T-MHI Turbine Private Limited is a Joint Venture Company between Larsen

& Toubro Limited (L&T), India and Mitsubishi Heavy Industries Limited (MHI).

Manufacturing facility located at Hazira, Near Surat, Gujarat. The current installed capacity is 4000 MW per year. Major Projects under execution are: 2 x 660 MW JP Power Ventures 2 x 700 MW Nabha Power

2 x 660 MW MAHAGENCO Koradi Boiler Package

2 X 800 MW APGENCO Krishnapattam MHI Technology for Pulveriser and Hyden Technology for Fans

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Thermax - Babcock
A joint venture between Thermax Limited, Pune, India and Babcock & Wilcox Power Generation Group, Inc., USA.

This license covers transfer of technical know-how pertaining to design and

engineering, manufacturing and installation of Subcritical Boilers of capacity 1000 TPH (300 MW) and above and the full range of Supercritical Boilers.

Currently, TBWES is in the process of setting up a manufacturing facility

with an annual capacity of 3000 MW and provisions for an expansion up to 5000 MW. It is located about 50 kms from Pune in Maharashtra on the

Mumbai-Bangalore national highway (NH4).

This state-of-the-art facility will have the capacity to manufacture Supercritical and Subcritical boilers and is scheduled to be commercially

operational by August 2013.

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BGR Energy - Hitachi

Joint venture between Hitachi Power Europe Gmbh, Germany, and BGR Energy Systems Limited, India, with equity participation of 70% by BGR Energy Systems Limited and 30% by Hitachi Power Europe Gmbh. T The Company offers: Design, Manufacturing, Inspection, Installation, Commissioning, Selling and/or Servicing of Super critical Boiler Steam Turbines & Generators of 660 MW / 700MW / 800 MW / 1000 MW. The Company is currently setting up a Manufacturing Unit in Tamil Nadu. 6 x 660 MW NTPC Bulk Tender- Boiler Package (Meja, Solapur)

4 x 800 MW NTPC Bulk Tender Turbine Package (Lara)

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Gammon - Ansaldo Caldie

Established in 2005, AnsaldoCaldaie Boilers India Pvt. Ltd., currently 26% owned by Ansaldo Caldaie, operates directly and autonomously on Indias Power market providing engineering, procurement and manufacturing for Ansaldo Caldaie projects both in India and worldwide. ACB Headquarters are located in Chennai, while the Manufacturing Facilities are in Trichy, Tamil Nadu, in the South of India.

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Doosan
Manufacturing Facility Near Chennai Manufacturing facility operational. Order executed / under execution in India 5 x 800 MW Mundra UMPP Boiler Package 2 x 660 MW GMR Raipur 3 x 660 MW NTPC Sipat 5 x 800 MW NTPC Bulk Tender Boiler Package (Kudgi, Mauda)

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Toshiba JSW
JV between Toshiba and JSW Factory located at Chennai, Tamilnadu Manufacturing of 500 1000 MW steam turbine. Order executed / under execution in India 5 x 800 MW NTPC Bulk Tender Turbine Package (Kudgi, Mauda)

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Bharat Forge Alstom

Manufacturing facility at Sanand JV between Alstom and Bharat Forge Manufacturing of sub critical and super critical steam turbine. Order executed / under execution in India 3 x 660 MW NTPC Bulk Tender Turbine Package

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Tata Power Projects under planning / execution stage

114 MW Dagachhu Hydro Project in partnership with the Royal Government of Bhutan (RGoB) Under Execution

240 MW Sorik Marapi Geothermal Project - Tata Power with consortium partners Origin Energy and PT Supraco. In Indonesia Under Execution.
236 MW Dugar Hydro Project Himachal Pradesh Under Planning / Development 3 x 67.5 MW Kalinganagar, Orissa Under Execution 3 x 150 MW Kalinganagar, Orissa Under Planning / Development 1980 MW Tiruldih Power Project, Jharkhand Under Planning / Development 1600 MW Coastal Maharashtra Project Dehrand Under Planning / Development Distribution Franchise for Jamshedpur Circle Under Implementation

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