CHAPTER 1 INTRODUCTION In keeping with the objectives of power sector reform and the State Governments Commitment for

r private sector participation in the electricity industry, the Government approved completion of privatization of distribution functions of GRIDCO by 31.03.99, which was earlier agreed to be completed by 31.12.2000. As per the joint venture arrangement approved by the state Government, GRIDCO offered disinvestments of 51% of shares of each of four distribution companies to the private sector investors through a process of international competitive bidding. Grid Corporation of Orissa otherly known as GRIDCO, which is the only independent organization fully based on supplying electricity along with managing its personal electricity board in Orissa. Through the board the organization is able to collect electricity from different producers of electricity & distributing those. If well go to past, before several years O.S.E.B. was the one & only electricity producing & distributing organization working for Orissa as the other states had their own electricity board . After working for a long span of period the O.S.E.B , got failure to provide a smooth flow in electricity supply and also failed to produce the demanded amount of electricity . At last due to lack in finance, it was the next to impossible to make the organization run in the previous manner . After getting weighted by loans it just depended on the Govt. grant. Due to the above reasons and heavy loss O.S.E.B. enabled to provide the minimum electricity needed by the customers. And its future became unpredictable.

According to the companies act 1956 GRID CORPORATION OF ORISSA LIMITED [GRIDCO] got registered on dt.20/04/1995. On dt.01/04/1996 O.S.E.B. handed over all the legal documents to GRIDCO. From that day GRIDCO engaged itself in buying huge amount of electricity from different electricity manufacturing centers like: NTPC, OHPC, OPGC, IPPS, CPPS and supplies that to different private distributing companies like WESCO, NESCO, SOUTHCO, CESCO. From these companies the electricity is provided to different divisions. All these responsibilities of distributing the electricity are given to these companies and they are revitalized. As to the current view all the daily works are possible due to the presence of electricity such as: lighting (lights), cooling (coolers/fans), heating (heaters), washing (washing machines), freezing (refrigerator). Traffic control, transportation and communication, media, advertising. Also there are several electronic devices those have a vital presence in our day to day life as T.V., radio, music systems, computers pressing irons, emergency lights/battery chargers. In the present era GRIDCO is the only electricity producing, distributing and facilitating organization in Orissa. It provides all the helps and knowledge about using the product, known as electricity. It provides all the electricity in a reasonable retail price to the consumers. Without electricity it seems as our life become as inflexible as a granite stone or as useless as a plain without its wings. OBJECTIVES
To study distribution process of GRIDCO. To study financial

statements and its

interpretation.(Study of

Profit/loss)

 To study procedures or steps followed for development. To establish a friendly atmosphere to produce an appropriate

electricity production unit or company in the state.

To protect the self image of the consumers. To omit the misuse of electricity. To take independent and secular decisions. To distribute electricity without any corruption. Control the duty of license holders. Encouraging and promoting competitions. To establish good relationship with the public and government.

SCOPE OF THE STUDY The scope of this project is very wide. This study is mainly covers how the organization distributing the powers into different category and for why the organization profitability ratio is reducing. By studying financial statement of different years we will be able to know the financial position of GRIDCO, at a particular point of time of respective years. METHODOLOGY For this study, an attempt is made to collect data from both Primary and secondary sources .Key officials and other employees have been interviewed through structured interviews to gather required data regarding the practices of organization. Annual report published reports, periodicals and leaflets have been studied to gather secondary data. Collected data from different sources have been presented through tables and diagrams. The datas which I have

shown in table are collected from GRIDCO library and it has been interprets by myself.

CHAPTER-2
INDIAN POWER SECTOR Electric power which is one form of energy is an essential ingredient of economic development. It is required for commercial and noncommercial uses. Commercial uses of power refers to the use of electric power in industry. Agriculture and transport. Non commercial uses of power refers to use of power required for domestic lighting, cooking, use of domestic mechanical gadgets like refrigerators, air conditioners etc., with the rapid growth of population in India and with the increase in the use of modern gadgets in daily life it is quite natural that the demand for electricity goat fatser rate. Sources of Electric Power There are three main sources of generation of electric power i.e. (i) (ii) (iii) Hydel Power Thermal Power Nuclear Power Hydro-electric power is a renewable natural resource. In 1950-51 installed capacity of hydro power was 560mw, but by eleventh five year plan (207-2012) the installed capacity was 30,560 mw. Hydro-power has several advantages. (i) (ii) It is the most economical source of power. There is no problem of pollution of atomosphere or disposal of waste ingeneration of hydropower.

Thermal power which is generated by coal and oil has been major source of electric power in India. In absolute term installed capacity of thermal power has increased from 1150mw in 1950-51 to 75900mw in (2007-12) The major thermal power comes from coal and a small fraction comes from oil. But coal and oil are non-reneble energy and exhaustible sources. Nuclear power is of recent origin and its supply account for only 2% of the total installed capacity of electricity. ODISHA AND POWER SECTOR The Govt. of Odisha is the first state to initiate reform of the state power sector with substantial restructuring of state electric Board (SEB) to make the operation of the sector more efficient and finally under the ODISHA Electricity Act, 1995. ODISHA (SEB) was replaced by three separate corporations. GRID CORPORATION OF ODISHA (GRIDCO) ODISHA HYDRO POWER CORPORATION (OHPC) ODISHA POWER GENERATION CORPORATION (OPGC) The ODISHAs effort placed special emphasis on the reform of electricity distribution with management of four zones with privatized at initial stage. A few other states are also considering the reform of the state power sector on the ODISHA pattern. But-there is staff resistance from organized trade union against restructuring and privatization. Rural Electrification The Government of India has taken a number of steps to increase generation, improve the reliability, efficiency and safety as well as reduce pollution in the thermal and nuclear sector.

The Govt. of India has passed the Energy conservation Act, 2001 to promote energy conservation through efficiency in various sectors of economy. Govt. of India declairs the year 2012 as Power for all. According to tenth five year plan (2002-2007) around 80,000 villages have electrified 13 states have declaire 100% electrified. In order to facilitate the flow of funds for Rural Electrification programme Govt. has allowed. (a) (b) The pooling of funds under minimum needs programme. Utilising funds available under member of parliament Local Area Scheme etc.

Development

CHAPTER 2 THE DISTRIBUTION PROCESS DOMESTIC For Kutir Jyoti consumers with monthly consumption not exceeding 30 units there will be no energy charges. For Kutir Jyoti consumers with monthly consumption exceeding 30 units and all domestic consumers, there will be three rates for three slabs of monthly consumption i.e.120 paisa per unit for first 100 units ,170 paisa per unit for next 100 units and 245 paisa per unit for consumption in excess of 200 units. No monthly minimum energy charge. For Kutir Jyoti consumers there will be a monthly minimum fixed charge of Rs.30 per consumer while for domestic consumers the monthly minimum fixed charge will be Rs.20 per month for the first KW or part thereof plus Rs.10 per month for each additional KW or part thereof of contract demand. Incase of on metered supply or when the meter is defective , the energy consumption shall be billed using a load factor of 20% on the contract demand. For this purpose the connected load of less than 0.5 KW shall be treated as 0.5 KW. A rebate of 10paise per unit allowed if bill is paid in full within 15 days from the date of the bill. DOMESTIC BULK SUPPLY No slab system. All units consumed in a month to be billed at a flat rate of Rs.1.60 per unit for supply at 11/33 KV. Demand charge of Rs 10 per KW or part thereof contract demand.

 No monthly minimum energy charge. Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer. Customer charge of Rs250 per month. In case of un-metered supply or when the meter is defective, the energy consumption shall be billed using a load factor of 20% on the contract demand. Rebate of 10 paisa per unit allowed if bill is paid in full within 15 days from the billing date. COMMERCIAL For Supply at 0.4 KV Three rates for three slabs of monthly consumption i.e. Rs 2.70 per unit for 1st 100 units, Rs 3.60 per unit for next 200 units and Rs 4.10 per units for the consumption in excess of 300 units . No monthly minimum energy charge. Monthly minimum fixed charge of Rs.30 per month for the 1 st KW or part thereof plus Rs 20 per month for each additional KW or part there of plus Rs 20 per month for each additional KW or part thereof of contract demand . Rebate of 10 paisa per unit allowed if bill is paid in full within 15 days from the billing date. For Supply at 11/33KV No slab system Demand Charge of Rs.50 per KW or part of thereof of contract demand / connected load.

 Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer. Customer charge of Rs250 per month Rebate of 10 paisa per unit allowed if bill is paid in full within 15 days from the billing date.

SMALL INDUSTRY Energy charge Rs. 2.45 per unit Monthly minimum fixed charge of Rs. 40 per month for the 1st KW or part thereof plus Rs.30 per month for each additional KW or part there of contract demand. No monthly minimum energy charge Incase of metered supply or when the meter is defective, the energy consumption shall be billed using a load factor of 20% on the contract demand. For this purpose the connected load of less than 0.5 KW. Rebate of 10 paisa per unit allowed if bill is paid in full within 15 days from the billing date. MEDIUM INDUSTRY For Supply at 0.4 KV Energy charge Rs.2.70 per unit. Monthly minimum fixed charge of Rs80 per month for the 1st KW or part thereof plus Rs 50 per month for each additional KW or part thereof contract demand. No monthly minimum energy charge.

 Delayed payment surcharges to be levied for delayed payment. For supply at 11/33KV Energy charge Rs2.45 per unit. Demand charge of Rs.50 per KW or part of thereof contract demand/ connected load. No monthly minimum energy charge. Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer. Customer charge of Rs 250 per month Delayed payment surcharge to be levied for delayed payment. Power factor penalty withdrawn. IRRIGATION PUMPING & AGRICULTURE For Supply at 0.4 KV Energy charge 90 paisa per unit. Monthly minimum fixed charge of Rs20 per month for the 1st KW or part thereof plus Rs 10 per month for each additional KW or part thereof contract demand. No monthly minimum energy charge. For supply at 11/33KV Energy charge 80 paisa per unit. Demand charge of Rs.30 per KW or part of thereof of contract demand/ connected load. No monthly minimum energy charge.

 Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer. Customer charge of Rs. 250 per month. Delayed payment surcharges to be levied for delayed payment. Demand charge of Rs. 50 per KW or part of thereof of contract demand/ connected load. No monthly minimum energy charge. Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer. Customer charge of Rs. 250 per month. Delayed payment surcharges to be levied for delayed payment. Power factor penalty withdrawn. PUBLIC WATER WORKS & SEWERAGE PUMPING Energy charges Rs. 2.70 per unit for supply at 0.4/0.23 KV and Rs. 2.60 per unit for supply at 11/33 KV. Monthly minimum fixed charge of Rs20 per month for the 1 st KW or part thereof plus Rs 10 per month for each additional KW or part thereof of contract demand. No monthly minimum energy charge. Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer Delayed payment surcharges to be levied for delayed payment. STREET LIGHTING Energy charges Rs. 2.45 per unit.

 Monthly minimum fixed charge of Rs20 per month for the 1st KW or part thereof plus Rs. 10 per month for each additional KW or part thereof of contract demand No monthly minimum energy charge. Delayed payment surcharges to be levied for delayed payment. No maintenance charges .Consumer to provide consumables. DISTRICT CURRENT SERVICES Tariff applicable is the corresponding tariff for A.C supply with 25% surcharge. Other conditions same as under A.C. supply. PUBLIC INST ITUTION For Supply at 0.4 KV Energy charge Rs 2.45 per unit. Monthly minimum fixed charge of Rs80 per month for the 1 st KW or part thereof plus Rs 50 per month for each additional KW or part thereof of contract demand No monthly minimum energy charge. Delayed payment surcharges to be levied for delayed payment. For supply at 11/33KV Energy charge Rs2.40 paisa per unit. Demand charge of Rs.50 per KW or part of thereof of contract demand/ connected load. No monthly minimum energy charge. Transformer losses to be added to the energy consumption in case of metering at LT side of consumers transformer.

 Customer charge of Rs250 per month. Delayed payment surcharges to be levied for delayed payment. Power factor penalty to be imposed if power factor is less than 90%. EMMERGENCY POWER SUPPLY TO CAPATIVE POWER PLANTS Energy charge Rs2.40 per unit. Power factor penalty to be imposed if power factor is less than 90% Customer charge of Rs250 per month. Delayed payment surcharges to be levied for delayed payment. CENTAL GOVT GOING TO BE PRIVATALISED SEMI-PRIVETALISED PRIVETALISED GOVT &PRIVETAL
NTPC OHPC NTPC NTPC

NTPC
OPGC IPPS

GRIDCO

NTPC

NTPC NTPC

CPPS

NTPC CONNSUMERS NTPC

NTPC

CHAPTER 3 BASIC FUNDAMENTALS WORKING CAPITAL MANAGEMENT Working capital means the capital which is required by an organization for short-term purpose. Every business needs funds for two purposes For the establishment To carry out its day-to-day transaction. Long term capital used for long-term purposes like purchase of land, building & machineries etc. Short term capital used short-term purposed like purchase of raw material, labor payments & other day-to-day expenses. This is also called working capital. CONCEPTS Two types of working capitals: Gross working capital Net working capital GROSS WORKING CAPITAL The gross working capital means the current assets of an enterprise. Current assets are those which in the ordinary course of business can be converted into cash within a short period of time {normally an accounting year} NET WORKING CAPITAL The net working capital means the excess of current assets over current liabilities or we can say:

 Net working capital = Current assets - Current liabilities CURRENT ASSETS LIABILITIES CASH IN HAND CASH AT BANK BILLSRECEVABLES SUNDRY DEBTORS PREPAID EXPENSES ACCURED INCOMES BILLS PAYABLE SUNDRY CREDITORS OUTSTANDINGEXPENSES SHORT-TERM LOANS DIVIDENDS PAYBLE BANK-OVERDRAFTS CURRENT

CLASSIFICATION OF WORKING CAPITALS

WORKING CAPITALS

ON THE BASIS OF CONCEPT

ON THE BASIS OF TIME

GROSS WORING CAPITAL

FIXED WORKING CAPITAL

NETWORKING CAPITAL

VARIABLE WORKING CAPITAL

REGULAR WORING CAPITAL

SEASONAL WORKING CAPITAL

RESERVE WORKING CAPITAL

SPECIAL WORKING CAPITAL

PERMANENT OR FIXED WORKING CAPITAL Permanent or fixed working capital is the minimum amount which is required to ensure effective utilization of fixed facilities and for maintaining the circulation of current assets.

Example: MAINTAINING AMINIMUM LEVEL OF RAW-MATERIAL WORK-IN-PROGRESS FINISHED GOODS CASH BALANCE TEMPORARAY OR VARIABLE WORKKING CAPITAL Temporary or variable working capital is the amount\of working capital which is required to meet the seasonal demands and some

special exigencies . Variable working capital further classified as seasonal working capital & special working capital.

DIAGRAMATIC REPRESRNTA TION Y

Variable working capital

Fixed working capital X TIME In the above diagram X axis represents time while the Y axis shows the amount of working capital. The straight line above the x axis

shows the fixed working capital and the other scribble variable working capital. SOURCES OF WORKING CAPITAL PERMANENT OR FIXED SHARES DEBENTURES PUBLIC DEPOSITS PLOUGHING OF PROFITS LOAN FROM FINANCIAL INSTITUTION

represents the

TEMPORARY OR VARIABLE COMMERCIAL BANKS INDIGENESOUS BANKERS TRADE CREDITORS INSTALMENT CREDITS ADVANCES ACCURED EXPENCES COMMERCIAL PAPERS

SOURCES OF FINANCE In the present era of economics finance means the provision of money at the time when it is required. Every enterprise whether large, medium or small needs finance to carry on its operations and to achieve its target. In fact, finance is so indispensable today that it is the life blood of an enterprise. Without adequate finances, no enterprise can possibly accomplish its objectives. Every business needs funds for two purposes *for the establishment & *to carry out its day-to-day transaction. The various sources of finance have been classified in many ways. Such as:-

# ACCORDING TO THE PERIOD FINANCIAL REQUIREMENTS

BANK CREDIT ISSUE OF SHARE ISSUE OF PREFERENCE TRADE CREDITS PLOUGHING BACK OF BANK LOANS DEFFERED INCOME LOANS FROM FINANCIAL LOAN FROM FINANCIAL INSTALMENT CREDIT ISSUE OF DEBENTURES CUSTOMER ADVANCES ISSUE OF DEBENTRES SHARE FACTORING PROFIT PUBLIC DEPOSITS COMMERCIAL PAPER INSTITUTIONS INSTITUTIONS

# ACCORDING TO THE OWNERSHIP FINANCIAL REQUIREMENTS OWNED CAPITAL SHARED CAPITAL RETAINED EARNINGS PROFITS SUPPLIES PROFITS SUPPLIES BORROWED CAPITAL DEBENTURES BONDS PUBLIC DEPOSITS LOANS

# ACCORDING TO THE SOURCE OF FINANCE

FINANCIAL REQUIREMENTS INTERNAL SOURCE EXTERNAL SOURCE

 PLOUGHING BACK OF PROFIT RETAINED EARNINGS PROFIT SUPPLIES DEPRECIATIONS

SHARES DEBENTURES LOANS PUBLIC DEPOSITS

SHARES Companies issue different types of shares to mop of funds from various investors. Before companies act 1956 public companies used to issue three types of share preference shares and different shares. The companies act 1956 has limited the type of shares to only two PREFERENCE SHARES EQUITY SHARES EQUITY SHARES The capital of a company is divided into a numbers of equal parts known as shares. Equity shares also known as ordinary shares or common shares, represent the owners capital in the company. The holders of these shares are the real owner of the company. They have a control over the

working of the company. Equity shares holders are paid dividend after paying it to the preference share-holders. The rate of these dividends depends upon the

profits of the company. An equity share holder takes more risk as compared to the preference share holders. Equity share capital cannot be redeem during the life time of the company . Equity shareholders can take decision about the company and so equity share holders are the real owner of the company . PREFERANCE SHARES

These shares have certain preferences as compare to other types of shares. These shares are given two preferences. They are: # PREFERANCE FOR PAYMENT OF DIVIDENT # REPAYMENT OF CAPITAL LIQUIDATION OF COMPANY. AT THE TIME OF

DIFFERENT TYPES OF PREFERANCE SHARES ARE: * CUMULATIVE PREFERANCE SHARES * NON-CUMULATIVE PREFERANCE SHARES * REDEEMABLE PREFERANCE SHARES * IREDEEMABLE PREFERANCE SHARES * PARTICIPATING PREFERANCE SHARES * NON-PARTICIPATINGH PREFERANCE SHARES * CONVERTIBLE PREFERANCE SHARES * NON-CONVERTIBLE PREFERANCE SHARES DEBENTURES OR BONDS A company may raise long term finance through public Borrowings. These loans are raised by the issue of debentures. A debenture is an acknowledgement of debt. A debenture is creditor of the company. A fixed rate of interest is paid on debentures. The interest on debentures charged on the profit & loss account of the company. DIFFERENT TYPES OF DEBENTURES # SIMPLE, NAKED OR UNSECURED DEBENTURES # SECURED DEBENTURES # BEARER DEBENTURES # REGISTERED DEBENTURES is

# REDEEMABLE DEBENTURES # INREDEEMABLE DEBENTURES # CONVERTIBLE DEBENTURES

CHAPTER 4 FINANCIAL STATEMENTS REVENUE FROM SALE OF POWER COMPARISION BETWEEN THE YEAR 2009-10 & THE YEAR 2010-11
CATEGORY 2007-08 2007-08 RS (CRORES) 2008-09 2008-09 RS (CRORES)

[MU]

[ MU]

DOMESTIC COMMERCIAL INDUSTRIAL [SMALL/MEDI]

1558 309

205.99 102.21

1353 310

158.08 76.68

250

58.68

257

46.82

INDSTRIAL [LARGE] PUBLIC LIGHTING RAILWAYTRACTION IRRIGATION & AGRICULTURE PUBLIC WATER WORKS BULK SUPPLY

*2548 30 168

778.9 6.17 62.78

*2392 28 184

691.52 4.7 56.36

194

16.48

159

11.28

94

26.76

102

18.58

232

89.26

256

59.85

PUBLIC INSTITUTIONS INTER-STATE SCALE

55

10.3

47

9.44

16.64

TOTAL

5440

1357.55

5088

1145.95

PURCHASE OF POWER IN THE YEAR 2009-10 & THE YEAR 2010-11

AGENCY 2009-10 2009-10 Rs. (CRORES) 2010-11 2010-11

[ MU ]

[ MU ]

Rs.(CRORES)

O.P.HC O.P.G.C[IB] T.T.P.S[NTPC] MACHKUND E.R.E.B. NALCO ICCL RSP HPCL[INDIA]

3210 2058 1810 297 2282 658 0 2 8

157.51 376.46 --- * 1.58 581.92 59.03 0 0.07 0.68

3607 1792 1321 372 1779 913 56 7 16

137.08 317.02 ---* 3.1 410.66 76.08 6.54 0.22 1.22

MPEB OREDA&ROYALLY WHEELINGCHARGES TOTAL

0 0 0 10324

0 0.05 22.17 1199.83

0 0 0 9863

6.94 0 23.85 982.71

REVENUE FROM SALE OF POWER COMPARISION BETWEEN THE YEAR 1998-99 &THE YEAR 1999-2000
CATEGORY 1998-99 [MU] 1998-99 RS(CRORES) 1999-2000 [MU] 1999-2000 RS(CRORES)

Domestic Commercial Industrial [small/med] Industrial [large] Public lighting Railway traction Irrigation & agriculture Public water works Bulk supply

956 221

130.55 68.35

990 229

130.54 70.82

160

39.25

178

43.66

1562 21 112

494.75 4.83 41.61

1540 22 110

487.78 5.06 40.86

140

11.88

155

13.15

64 113

21.21 49.03

69 126

22.86 54.67

Public institution Bulk supply to license Wheeling charges

36

7.85

33

7.19

3442

440.16

3450

441.18

59.39

60.25

TOTAL

6827

1368.86

6902

1378.02

PURCHASE OF POWER IN THE YEAR 1998-99 & THE YEAR 1999-2000

AGENCY 1998-99 [MU] 1998-99 RS(CRORES) 1999-2000 [MU] 1999-2000 RS(CRORES)

O.P.H.C O.P.G.C.[IB] T.T.P.S[NTPC] MACHKUND E.R.E.B NALCO ICCL RSP HPCL[INDIA]

3280 2509 3284 245 237 921 84 2 9

164.01 404.53 538.2 1.96 29.9 78.11 6.48 0.05 0.79

3570 2708 2533 296 373 1268 88 4 12

178.51 436.61 415.12 2.36 47.05 107.53 6.78 0.1 1.05

WHEELCHARGES

16.59

59.22

TOTAL

10571

1240.62

10764

1254.33

The above table represents the sale of power and purchase of power of different years. GRIDCO purchases powers from different power sectors in bulk quantities and sells it in different ways to different consumers. Purchase or Power The purchase of power represents here the increasing trend of demand. GRIDCO purchasing powers from different power sectors like O.P.H.C., O.P.G.C, T.T.TP.S, MACHKUND, ICCL, HPCL etc. According to the above table GRIDCO is demanding more power from all sellers or power sectors. In 1997-98 GRIDCO has demanded 4.67% more power than the year 1996-97. For 4.67% increase of demand the GRIDCO has given 22.09% more price than the year 1996-97.For 4.67% increase of demand the GRIDCO has given 22.09% more price then the year 1996-97. Similarly, the demand of GRIDCO increases 2.39% in 1998-99 compared with 1997-98 and at that time the GRIDCO also faced increase in price of 3.40%. Each and every step of purchasing the GRIDCOs demand is increasing than previous year purchasing is not bad for an organization but such types of selling should be there. Sales of Power: Sale of power is an important work for GRIDCO and selling a process through which the corporation can maximize its profit. The trend of selling line of GRIDCO also upward slopping .In the year 1996-97 the MU of GRIDCO was 5088 and at next year it was increased 6.92% more

than 1996-97 year. Similarly in 1998-99 the MU increased 25.49% (6827 MU) more than the 1997-98. In 1999-2000 also GRIDCOs selling was increased more 1.10% than the previous year. GRIDCOs selling > Purchasing.

GROSS INCOMES PARTICULARS SALE OF POWER OTHER INCOMES SUBSIDY[REVENUE] TOTAL 1997-98 1399.87 51.85 5.31 1457.03 EXPENDITURE PARTICULARS PURCHASE OF POWER REPAIR &MAINTAINANCE EMPLOYEE COST A&G EXPENSES OTHERS 1997-98 1199.83 58.54 266.73 30.99 42.11 1996-97 982.71 43.39 238.07 25.13 33.72 1996-97 1153.36 33.94 11.38 1209.68

INTEREST DEPRICIATION PRIOR PERIOD EXPENSES

125.79 141.66 [11.83]

102.30 132.95

TOTAL LESS CAPITALISED NET PROFIT/LOSS LOSS = EXPENDITURE INCOME Profit/loss Analysis

1853.82 77.67 1776.15

1558.27 53.60 15.4.67

319.12

294.99

GRIDCO is a large scale of organization which is purchasing and selling of electricity. The major part of expenses is purchasing and major part of income is selling. But GRIDCOs other expenses is too more. Such as Repair & Maintenance, Employee cost, A&G expenses, other expenses, interest, depreciation etc.

GRIDCOs Purchasing < selling But, GRIDCOS expenses + purchasing > selling The loss is increasing year to year. The cause behind it:

1. GRIDCO started his operation in 1996. Proper distribution is a major problem for loss. Because, proper distribution means more expenses. 2. GRIDCO has no other income. So, its income is less and thats the cause of losses. 3. Employees cost, interest, depreciation is the cause of more expenses and thats why GRIDCO incurred losses. 4. Selling amount is not so higher than purchasing amount. 5. GRIDCOs main aim is to providing services are the cause of high expenses and so, loss is incurred. If the GRIDCO will correct the above causes then he may occur profit. DEVELOPMENT OF R.E.IN THE STATE [PLAN-WISE]

PLAN

PLANOUTLA EXPENDITUR PHYSICALACHIEVEMENT Y E WITHOUT WITHOUTS.P S.P.A IN LKHS VILLAGE L.I.PUMPS .A IN LAKHS ELECTRIFIE ENERGISED 3 D 2 5 4

1ST PLAN 1951-52 to 1955-56 2ND PLAN 1956-57 to 1960-61 3RD PLAN 1961-62 TO 335 373.87 416.00 241 134 131.23 93 49.19 77.52 25.00 -

1965-66 ANNUAL PLAN 1966-67 1967-68 1968-69 4TH PLAN 1969-70 1970-71 1971-72 1972-73 1973-74 5th Plan 1974-75 1975-76 1976-77 1977-78 1978-79 Annual Plan 1979-80 6th Plan 1980-81 1981-82 1982-83 1983-84 1984-85 1060 1070 1238 1309 1219 1672.53 163.10 1894.87 348.13 1354.70 400.19 294.33 1363.88 334.70 1286.00 3611 1276.00 3491 1289.00 3777 1293.00 2929 1752.00 3236 1200 1362.85 1752.00 369 570 650 675 759 1330 997.19 830.51 824.05 927.15 1044.00 2231.00 1549.00 1684.00 1202.00 1520.00 756 1009 904 999 2839 139 176 230 400 609 123.85 257.25 696.84 915.49 892.83 146.00 907.00 2,288.00 2,868.00 2,264.00 103 132 357 1148 542 120 88 70 110.05 90.64 50.10 97.00 128.00 62.00 16 179 41

7th Plan 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1618 1819 2000 1884 1634 1326 2927 1250.51 307.10 1297.28 305.32 1007.28 457.66 1664.00 579.00 1662.00 594.00 1703.34 2315.41 741.84 8TH PLAN 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 1400 1400 2500 5704 5065 4112 4900 4895 722.55 484.44 1469.20 715.50 362.50 2959.85 468.00 827.00 189.00 2601.40 238.20 2055.00 984.00 2254.00 885.00 845 1542 817 1312 810 1903 737 967 732 2260 246 223 2607 2889 217 3259 1468 1061 8105 4852 937 7581 1459 6600 1559 4505 1426.00 2200 1196.00 2615

DISTRICTWISE VILLAGE ELECTRIFICATION IN ORISSAON31/3/1999

S L N O

NAME OF DIST.

NO. NO.OFVIL %OF OF L. VILL. VIL ELECTRIF ELECT LIED RI-FIED AG UPTO 97-98 ES NO. NO.O OF. FHA VIL M L UPTO 97-98

NO.OF VILL. ELECT RI-FIED

NOOF VILL. ELECTRI FIED UPTO 3/31/99

%OF. ELEC TRIFIED

IN 98-99

NO. OF. VIL L

NO. OF. HA M 42 97 135 42 21 5 185 51 33 135 405

UPT O 31/3/9 9 75.98 90.44 98.55 82.10 84.89 55.94 96.82 88.30 33.95 48.52 85.63

1 2 3 4 5 6 7 8 9 10 11

ANGUL BALASORE BARAGARH BHADRAK BOLANGIR BOUDH CUTTACK DHENKANA L DEOGARH GAJAPATI GANJAM

163 2 258 6 117 7 122 4 176 1 110 1 176 2 106 0 698 145 7 276 3

117 3 213 6 115 1 981 147 8 587 170 2 910 234 690 230 8

42 97 135 42 21 5 185 51 33 135 405

71.87 82.68 97.79 80.14 83.92 53.71 96.59 85.84 33.52 47.35 83.53

67 203 9 24 17 29 4 26 3 17 58

1240 2339 1160 1005 1495 616 1706 936 237 707 2366

12 13 14 15

JAJPUR JAGATSING PUR JHARSUGU DA KANDHAM AL

156 3 131 8 353 233 6 206 9 138 7 205 2 135 0 186 9 885 371 7 151 1 882 643 158 9 244 0 124

140 3 122 1 345 106 9 117 9 120 6 168 0 118 4 966 343 228 9 100 8 649 435 150 2 927 811

146 113 60 20 27 119 12 239 113 69 39 180 65 2 263 80 108

89.76 92.64 97.73 45.76 56.98 86.95 81.87 87.70 51.88 39.32 61.58 66.71 73.58 67.65 94.52 37.99 64.98

28 6 3 18 0 12 18 58 6 15 108 39 8 0 20 5 4

1431 1227 348 1087 1179 1218 1698 1242 972 358 2397 1047 657 435 1522 932 815

146 113 60 20 27 119 12 239 113 69 39 180 65 2 263 80 108

91.55 93.09 98.58 46.53 56.98 87.81 82.74 92.00 52.00 40.45 64.48 69.29 74.48 67.65 95.78 38.19 65.30

16 KALAHAND I 17 18 19 20 21 22 KENDRAPA RA KEONJHAR KHURDA KORAPUT MALKANGI RI MAYURBH ANJ

23 NAYAGARH 24 25 26 NOWRANG PUR NUAPARA PURI

27 RAYAGADA 28 SAMBALPU

R 29 30 SONEPUR SUNDERGA RH TOTAL

8 808 166 6 469 07 618 144 0 336 25 9 73 2888 76.48 86.43 71.68 6 6 817 624 1446 3444 2 9 73 288 8 77.22 86.79 73.43

District wise village electrification Grid Corporation of Orissa (GRIDCO) is paying a vital role in our state. In Orissa, 30 Districts, and total of 40,907 villages are there but all villages are not electrified, that means 71.68% villages already electrified at that date. After 1 year 817 villages were more electrified and till date 73.42% villages have been electrified. With in 1 year 1.74% villages were electrified, that means a day will come, no village in Orissa will in category of non-electrified area. Some villages are there, where GRIDCO is working very hardly and for GRIDCO, these districts becomes developing. These districts are, Baragarh, Cuttack, Jajpur, Jagatsinghpur, Jharsuguda, Khurda, and Puri. The above districts are approximately fully electrified than others. Above 90% of these villages districts has been electrified. GRIDCO is following an important role that, village electrification which is very difficulties in nature. A district can not be developed without electrified. For developing country such types of Organizations should be there like GRIDCO. DISTRICT WISE PUMPSET ENERGISATION AS ON 31/3/199
SL. NO NAME OF DIST NO.OF PUMPSET ENERGISED UP NO.OF .PUMP SET ENERCISED NO OF PUMP SET

TO 31.3.98

DURING 1998-99

UP TO 31.3.99 OLIC Pvt.

OLC

Pvt.

Total

OLI C 6 3 14 15 6 8 9 30 2 23 18 13 5 5 12 3 2

Pvt.

Tota l 8 8 366 209 36 10 25 4 10 75 13 43 44 19 5 49 8 31 17 4 11

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

2 ANGUL BALASORE BARAGARH BHADRAK BOLANGIR BOUDH CUTTACK DHENKANA L DEOGARH GAJAPATI GANJAM JAJPUR JAGATSING PUR JHARSUGU DA KANDHAM AL KALAHAND I KENDRAPA RA KEONJHAR

3 389 1977 329 729 341 180 901 66 516 244 1284 587 1384 123 447 153 1377 812 306 428 62 819

4 1776 3955 4492 1307 5246 442 2220 383 2069 806 7191 1711 1933 1647 1865 741 914 2044 801 457 80 1737

5 2165 5932 4821 2099 5587 622 3121 449 2585 1050 8475 2298 3317 1770 2312 894 2291 2856 1107 885 142 2556

7 5 352 209 21 4 17 4 1 45. 41 20 44 1 5 36 3 26 5 1 9

9 392 1991 329 792 356 186 909 66 516 253 1314 589 1407 123 465 153 1390 817 311 440 65 821

10 1781 4307 4701 1307 5267 446 2237 383 2073 807 7236 1752 1953 1691 1966 746 950 2047 827 462 81 1746

24 25 26 27 28 29

KHURDA KORAPUT MALAKANG IRI MAYURBHA NJ NAYAGARH

234 292 191 406 831 262 202

1065 444 1205 1934 301 1904 825 4205

1299 736 1396 2340 1132 2166 1027

8 7 12 2 8 2

22 182 2 17 1 32

30 7 194 4 17 9 34

242 299 191 418 833 262 210 414

1087 444 1205 2116 303 1921 826 4237

30 NOWRANGP UR NUAPARA PURI RAYAGADA SAMBALPU R SONEPUR SUNDERGA RH TOTAL

412

1628 4

5570 67430 0

207

1105

1282

16554 56905

District wise pump set energisation. The above table presents the pump set energisation in different districts inside Orissa. Such pump set energisation provides a major source in producing the electric power and provide it various regions in all over Orissa. During the Year 98-99 in balas ore 366 pump sets are energized and in Cuttack 25 Pump set energized. In the district Khurda, Kendrapara and Puri 31, 49 and 194 pump set energized respectively. Sum totally 73,359 pump sets are established or energized in 30 districts all over Orissa to ascertain uninterrupted and regular supply of electricity to various

villages or under developed rural areas situated in different regions and provide Orissa the path of light. The total of 1312 pump sets has energized during the period 199899 to 1999-2000. That means, 1082% of pump sets are energized during the year 1998-99. Out of the 30 districts, GRIDCO is giving more emphasis to the rural areas peoples. In Sundergarh, Keonjhar, Kandhamal, Jagatsinghpur, Deogrh, Bolangir, Bhadrak and Balasore districts more pump sets has been energized. It is one of cause to provide optimum electricity at everywhere. Thats the cause; the GRIDCO is giving more emphasis to these rural areas.

ELECTRIFICATION OF KUTIR JYOTI HOUSE HOLDS IN ORISSA

SL.N NAME OF THE O. DISTRICT UPTO 97TOTAL 98KUTIR JYOTI CONNECTION CONNECTION 2780 4336 3664 2490 3814 1483 4216 658 3238 1827 5548 1909 2687 1573 4406 3773 2030 5443 2155 4694 1490 9279 1566 2379 3689 2390 243 _ _ 227 _ _ _ _ 165 _ 143 _ _ 195 _ _ _ _ _ _ _ _ _ _ _ _ UPTO9798KUTIR JYOTI CONNECTION 3023 4336 3664 2717 3814 1483 4216 658 3403 1827 5691 1909 2687 1768 4406 3773 2030 5443 2155 4694 1490 9279 1566 2379 3689 2390

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

ANGUL BALASORE BARAGARH BHADRAK BOLANGIR BOUDH CUTTACK DHENKANAL DEOGARH GAJAPATI GANJAM JAJPUR JAGASINGPUR JHARSUGUDA KANDHAMAL KALAHANDI KENDRAPARA KEONJHOR KHURDA KORAPUT MALKANGIRI MAYURBHANJ NAYAGARH NOWRANGPUR NUAPARA PURI

27 28 29 30

RAYAGADA SAMBALPUR SONEPUR SUNDERGARH TOTAL

3618 2341 1310 6605 97391

_ _ _ _ 973

3618 2341 1310 6605 98364

ELECTIRIFICATION OF KUTIR JYOTI HOUSE HOLDS GRIDCO is the one of the electricity board who providing electricity to every places even if it is underdeveloped or rural area. In urban areas the Kutir Jyoti electrification has already provided. The GRIDCO is now providing electricity to rural areas. In the above diagram we can measure the Kutir Jyoti electrification in rural area. The total of 98,364 lines has been connected. But in the Year 1998-99 only in Anugul, Bhadrak, Deogarh, Ganjam and Jharsuguda district the Kutir Jyoti scheme has been applied 243,227,165,143 and 195 respectively. Out of 30 districts 0.99% of Kutir Jyoti has been connected in rural areas. But no after connection has made in urban areas till date.

HARIJAN BASTEE ELECTRICATION WITH STREET LIGHTS UNDER H.B.SCHEME SL.NO. NAME OF DISTRICT TOTALNO. OFELECTRIFIED H.B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ANGUL BALASORE BARAGARH BHADRAK BOLANGIR BOUDH CUTTACK DHENKANAL DEOGARH GAJAPATI GANJAM JAJPUR JAGASINGPUR JHARSUGUDA KANDHAMAL KALAHANDI KENDRAPARA KEONJHOR KHURDA KORAPUT MALKANGIRI MAYURBHANJ NAYAGARH NOWRANGPUR NUAPARA 273 248 201 145 225 51 420 61 224 210 588 269 306 114 239 158 315 306 210 89 45 224 148 104 60 581 474 390 155 472 67 738 115 448 385 1136 409 526 203 649 215 566 673 360 218 115 412 272 269 160 STREET LIGHTS

26 27 28 29 30

PURI RAYAGADA SAMBALPUR SONEPUR SUNDERGARH TOTAL

245 88 178 95 298 6137

414 218 310 201 536 11679

TARIFF AT A GLANCE S L N O . CATEGORY OF CONSUMER S Volta ge of suppl y Deman d charge Rs/KW Rs/KV A Energ y charg e P/K Wh Custo mer Service charge Rs/Cus t Monthly minimu m fixed charge of 1st KW or part[Rs] Mont hly Fixed charg e for any additi onal KW or part[ Rs] H Rebat e P/K Wh

LT CATEGORY 1 Kutir Jyoti Domestic[1st 100 units] 2 Domestic[2nd 100 units] Domestic[Bala nce units] Commercial[1s t 100units] 3 Commercial[2 nd 100units] Commercial[B alance units] 4 5 Irrigation Street Lighting 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 170 245 270 360 410 90 245 20 20 10 10 10 DPS 30 20 10 Fixed monthly charge 120 20 10 10 30 30

00V 6 7 8 9 1 0 1 1 1 2 Small Industry Medium Industry Public Institutions Public Water Work<100KW Public Water Work General Purpose Large Industry 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200/4 00V 200 200 200 245 270 245 270 270 270 270 30 30 30 40 80 80 80 30 50 50 50 10 DPS DPS DPS DPS DPS DPS

HT CATEGORY 1 3 1 4 1 5 1 6 1 7 1 8 1 Bulk Supply[domest ic] Irrigation Public Institution Commercial Medium Industry General Public Water 11/33 KV 11/33 KV 11/33 KV 11/33 KV 11/33 KV 11/33 KV 11/33 10 160 250 10

30 50 50 50 200 200

80 240 260 260 260 260

250 250 250 250 250 250

DPS DPS 10 DPS DPS DPS

9 2 0 2 1 2 2 2 3 2 4

Works Large Industry Power int ind Mini Steel Plant Railway traction Colony Consumption

KV 11/33 KV 11/33 KV 11/33 KV 11/33 KV 11/33 KV 200 200 200 200 260 260 240 260 160 250 250 250 250 DPS DPS DPS DPS

EHTCATEGORY 25 26 27 28 29 30 31 32 General Purpose 132KV 200 250 200 200 200 200 250 250 250 250 250 240 350 160 700 700 700 700 700 700 700 DPS DPS DPS DPS DPS DPS DPS

Large Industry 133KV Railway traction Heavy Industry Power int. ind Mini Steel Plant Emergency Supply to CPP Colony Consumption D.C.SERVICE 134KV 135KV 136KV 137KV 138KV 139KV

RATE FOR DC SUPPLY Rate at SI 2+25% Surcharge Rate at SI 3+25% Surcharge Rate at SI 4+ 25% Surcharge 10 10 10

33 34 35

Domestic Commercial Small Industry

DPS DELAYED PAYMENT SURCHARGE MISCELLANEOUS CHARGES [A] MONTHLY METER RENT

SL.NO 1

TYPE OF METER Single phase electromagnetic KWh meter

METER RENT Rs 15

Three Phase electromagnetic KWh meter

Rs 30

Three Phase electromagnetic trivector meter

Rs 800

Trivector meter for railway traction

Rs 800

5 6 7

Single Phase static KWh meter Three Phase static KWh meter Three Phase static trivector meter

Rs 35 Rs 250 Rs 800

Three Phase Static trivector meter

Rs 800

[B] RECONSTRUCTION CHARGES SL.NO TYPE OF CONSUMER RECONNECTION CHARGES 1 2 Single Phase domestic Consumers Single Phase other Consumers Rs. 30 Rs. 50

3 4

Three Phase line EHT and HT line

Rs. 100 Rs. 500

[C] NEW CONSUMER CHARGES FORLT CONSUMERS (i) Flat charge of Rs 500 per consumer for new service connection up to and including 3KW (ii) Existing Practice to continue for connection above 3KW

CHAPTER 5 CONCLUSION Taking into account of this aspects of this project of mine, I would like to conclude in a very specifying note that to best of my ability. The GRIDCO having an efficient employee who knows all about the GRIDCO and they also have the efficient knowledge about GRIDCO. The point is they cannot take immediate actions on that matter. It can be possible slowly and a time will come the GRIDCO will increase his efficiency and slowly he will go to the top. My objectives to this thesis that, distribution process, analysis the Profit/loss and some steps followed for developing. The overall distribution process of GRIDCO is better. Now-a-days WESCO, NESCO, CESCO and SOUTHCO are 4 divisions of GRIDCO. Who has to the GRIDCO to distributing power to the different categories of purchaser? The profit and loss is depends upon the GRIDCOs purchasing and selling. GRIDCO is purchasing and selling powers to keep a low note of profit. After adding all the expenses the GRIDCO becomes suffered losses. And Now-a-days GRIDCOs Expenses is increasing and according to that proportionate of profit the GRIDCO have to charge by increase the selling price per unit consumed. The GRIDCO is a very wide structural organization. So, control on this organization is too difficult. After all GRIDCO is providing to much services to the consumers. Some proofs I have explained in my thesis. If we will look to the districts of Orissa, the GRIDCO is everywhere

GRIDCO will get profit. Because, his Purchasing is less than selling. But the point is the expenses. The expense of GRIDCO is too high now-adays because the GRIDCO is trying to develop of provides electricity also in rural areas. So, expenses is too high than expectation. So the GRIDCO is suffering losses. After meat all the expenses a day will come when the GRIDCO will get more profit and a highly profitable organization. I have toiled hard on this project and most probably come up with a solution, which I could have provided. But still then as every one is aware of the fact that every coin has two sides, so it is quite obvious that the project of mine has certain flaws. Still then if we can it ignore these little flaws we can get an efficient knowledge if not ideal one. Suggestions In India the demand for power is surging with shortage peaking over 15%. Many of the house holds are still not connected to the countrys electricity grid. According to minestry of Power Indias transmission and distribution (T&D) lossess are among highest in the world, averaging 24% percent of total electricity production. In some states as high as 62%. A grid is a collective name for all the wires, transformers, and infrastructure that transport electricity from power plants to end users. The present day grid is unidirectional and doesnt maximize technological developments. For improving the performance of GRIDCO the following measures can be taken. (i) (ii) Announcement of mega power project policy. Restructuring of SEBs to be encouraged

(iii) (iv)

Increasing budgetary support for increasing power production. Reducing Transmission and Distribution losses by adopting advanced technology.

(v) (vi)

Providing high quality coal and skilled labour. Speedy implementation of stigent measures against theft of electricity.

(vii) Reliability and quality of power supply to be monitor by state electricity commissions. (viii) Explotation of Non-Conventional energy sources such as small hydro, solar, bio-mass, wind for additional power generation capacity. (ix) Adoption of Information Technology (IT) system for ensuring correct billing to consumer. (x) Encouraging for private sector partispation in Distribution etc.