Financial Management & Analysis of Grid-New

CHAPTER – 1

INTRODUCTION

In keeping with the objectives of power sector reform and the State

Governments Commitment for 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 we’ll 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 non-

commercial 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) Hydel Power

(ii) Thermal Power

(iii) 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) It is the most economical source of power.

(ii) 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 ODISHA’s 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) The pooling of funds under minimum needs programme.

(b) Utilising funds available under member of parliament Local Area

Development Scheme etc.

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.


Transformer losses to be added to the energy consumption in case

of metering at LT side of consumer’s 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 .


Monthly minimum fixed charge of Rs.30 per month for the 1st

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 .



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 consumer’s transformer.

Customer charge of Rs250 per month



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.



MEDIUM INDUSTRY


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.


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.




Customer charge of Rs 250 per month

Delayed payment surcharge to be levied for delayed payment.

Power factor penalty withdrawn.

IRRIGATION PUMPING & AGRICULTURE


Energy charge 90 paisa per unit.

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 contract demand.



Energy charge 80 paisa per unit.

Demand charge of Rs.30 per KW or part of thereof of contract

demand/ connected load.




Customer charge of Rs. 250 per month.


Demand charge of Rs. 50 per KW or part of thereof of contract





Customer charge of Rs. 250 per month.


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.



part thereof of contract demand.



metering at LT side of consumer’s transformer


STREET LIGHTING

Energy charges Rs. 2.45 per unit.


or part thereof plus Rs. 10 per month for each additional KW or

part thereof of contract demand



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


Energy charge Rs 2.45 per unit.



part thereof of contract demand




Energy charge Rs2.40 paisa per unit.

Demand charge of Rs.50 per KW or part of thereof of contract







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%



CENTAL GOVT

GOING TO BE PRIVATALISED

SEMI-PRIVETALISED

PRIVETALISED

GOVT &PRIVETAL

NTPC

OHPC

OPGC

IPPS

CPPS

GRIDCO

NTPC

NTPC

NTPC

NTPC

CONNSUMERS

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 CURRENT

LIABILITIES

→ CASH IN HAND → BILLS PAYABLE

→ CASH AT BANK → SUNDRY CREDITORS

→ BILLSRECEVABLES → OUTSTANDINGEXPENSES

→ SUNDRY DEBTORS → SHORT-TERM LOANS

→ PREPAID EXPENSES → DIVIDENDS PAYBLE

→ ACCURED INCOMES → BANK-OVERDRAFTS

CLASSIFICATION OF WORKING CAPITALS

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.

ON THE BASIS OF CONCEPT ON THE BASIS OF TIME

FIXED WORKING CAPITAL

VARIABLE WORKING CAPITAL

SEASONAL WORKING CAPITAL

SPECIAL WORKING CAPITAL

GROSS WORING CAPITAL

NETWORKING CAPITAL

REGULAR WORING CAPITAL

RESERVE WORKING CAPITAL

WORKING CAPITALS

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 represents the

variable working capital.

SOURCES OF WORKING CAPITAL

PERMANENT OR FIXED TEMPORARY OR VARIABLE

→ SHARES → COMMERCIAL BANKS

→ DEBENTURES → INDIGENESOUS BANKERS

→ PUBLIC DEPOSITS → TRADE CREDITORS

→ PLOUGHING OF PROFITS → INSTALMENT CREDITS

→ LOAN FROM FINANCIAL → ADVANCES

→ INSTITUTION → 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 DEBENTURES

→ ISSUE OF SHARE → CUSTOMER ADVANCES

→ ISSUE OF PREFERENCE → ISSUE OF DEBENTRES

→ TRADE CREDITS → SHARE

→ PLOUGHING BACK OF → FACTORING

→ BANK LOANS → PROFIT

→ DEFFERED INCOME → PUBLIC DEPOSITS

→ LOANS FROM FINANCIAL → COMMERCIAL PAPER

→ LOAN FROM FINANCIAL → INSTITUTIONS

→ INSTALMENT CREDIT → INSTITUTIONS

│# │ ACCORDING TO THE

OWNERSHIP

FINANCIAL

REQUIREMENTS

→ OWNED CAPITAL → BORROWED CAPITAL

→ SHARED CAPITAL → DEBENTURES

→ RETAINED EARNINGS → BONDS

→ PROFITS SUPPLIES → PUBLIC DEPOSITS

→ PROFITS SUPPLIES → LOANS

│# │ ACCORDING TO THE SOURCE OF FINANCE

FINANCIAL REQUIREMENTS

→ INTERNAL SOURCE → EXTERNAL SOURCE

→ PLOUGHING BACK OF PROFIT → SHARES

→ RETAINED EARNINGS → DEBENTURES

→ PROFIT → LOANS

→ SUPPLIES → PUBLIC DEPOSITS

→ DEPRECIATIONS

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 AT THE TIME OF

LIQUIDATION OF COMPANY.

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 is

charged on the profit & loss account of the company.

DIFFERENT TYPES OF DEBENTURES

│# │ SIMPLE, NAKED OR UNSECURED DEBENTURES

│# │ SECURED DEBENTURES

│# │ BEARER DEBENTURES

│# │ REGISTERED DEBENTURES

│# │ 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 2008-09 2008-09

[MU]RS

(CRORES)[ MU]

RS

(CRORES)

DOMESTIC 1558 205.99 1353 158.08

COMMERCIAL 309 102.21 310 76.68

INDUSTRIAL

[SMALL/MEDI] 250 58.68 257 46.82

INDSTRIAL [LARGE] *2548 778.9 *2392 691.52

PUBLIC LIGHTING 30 6.17 28 4.7

RAILWAYTRACTION 168 62.78 184 56.36

IRRIGATION &

AGRICULTURE194 16.48 159 11.28

PUBLIC WATER

WORKS94 26.76 102 18.58

BULK SUPPLY 232 89.26 256 59.85

PUBLIC

INSTITUTIONS55 10.3 47 9.44

INTER-STATE SCALE 0 0 0 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 2010-11 2010-11

[ MU ]Rs.

(CRORES)[ MU ] Rs.(CRORES)

O.P.HC 3210 157.51 3607 137.08

O.P.G.C[IB] 2058 376.46 1792 317.02

T.T.P.S[NTPC] 1810 --- * 1321 ---*

MACHKUND 297 1.58 372 3.1

E.R.E.B. 2282 581.92 1779 410.66

NALCO 658 59.03 913 76.08

ICCL 0 0 56 6.54

RSP 2 0.07 7 0.22

HPCL[INDIA] 8 0.68 16 1.22

MPEB 0 0 0 6.94

OREDA&ROYALLY 0 0.05 0 0

WHEELINGCHARGE

S0 22.17 0 23.85

TOTAL 10324 1199.83 9863 982.71

REVENUE FROM SALE OF POWER

COMPARISION BETWEEN THE YEAR 1998-99 &THE YEAR

1999-2000

CATEGORY 1998-99 1998-99 1999-2000 1999-2000

[MU] RS(CRORES) [MU] RS(CRORES)

Domestic 956 130.55 990 130.54

Commercial 221 68.35 229 70.82

Industrial

[small/med]160 39.25 178 43.66

Industrial [large] 1562 494.75 1540 487.78

Public lighting 21 4.83 22 5.06

Railway traction 112 41.61 110 40.86

Irrigation &

agriculture140 11.88 155 13.15

Public water works 64 21.21 69 22.86

Bulk supply 113 49.03 126 54.67

Public institution 36 7.85 33 7.19

Bulk supply to

license3442 440.16 3450 441.18

Wheeling charges 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 1998-99 1999-2000 1999-2000

[MU] RS(CRORES) [MU] RS(CRORES)

O.P.H.C 3280 164.01 3570 178.51

O.P.G.C.[IB] 2509 404.53 2708 436.61

T.T.P.S[NTPC] 3284 538.2 2533 415.12

MACHKUND 245 1.96 296 2.36

E.R.E.B 237 29.9 373 47.05

NALCO 921 78.11 1268 107.53

ICCL 84 6.48 88 6.78

RSP 2 0.05 4 0.1

HPCL[INDIA] 9 0.79 12 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 GRIDCO’s 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 GRIDCO’s selling was

increased more 1.10% than the previous year.

GRIDCO’s selling > Purchasing.

GROSS INCOMES

PARTICULARS 1997-98 1996-97

SALE OF POWER OTHER

INCOMES

SUBSIDY[REVENUE]

1399.87

51.85

5.31

1153.36

33.94

11.38

TOTAL 1457.03 1209.68

EXPENDITURE

PARTICULARS 1997-98 1996-97

PURCHASE OF POWER

REPAIR &MAINTAINANCE

EMPLOYEE COST

A&G EXPENSES

OTHERS

1199.83

58.54

266.73

30.99

42.11

982.71

43.39

238.07

25.13

33.72

INTEREST

DEPRICIATION

PRIOR PERIOD EXPENSES

125.79

141.66

[11.83]

102.30

132.95

TOTAL 1853.82 1558.27

LESS CAPITALISED 77.67 53.60

NET 1776.15 15.4.67

PROFIT/LOSS

LOSS = EXPENDITURE –

INCOME319.12 294.99

Profit/loss Analysis

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 GRIDCO’s other expenses is too more. Such

as Repair & Maintenance, Employee cost, A&G expenses, other expenses,

interest, depreciation etc.

GRIDCO’s Purchasing < selling

But, GRIDCO’S 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 that’s

the cause of losses.

3. Employees cost, interest, depreciation is the cause of more

expenses and that’s why GRIDCO incurred losses.

4. Selling amount is not so higher than purchasing amount.

5. GRIDCO’s 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

1

PLANOUTLAY

WITHOUTS.P.A IN LAKHS

2

EXPENDITURE WITHOUT

S.P.A IN LKHS

3

PHYSICALACHIEVEMENT

VILLAGE ELECTRIFIE

D

4

L.I.PUMPS

ENERGISED

5

1 ST PLAN

1951-52 to

1955-56

49.19 77.52 25.00-

2 ND PLAN

1956-57 to

1960-61

134 131.23 93-

3 RD PLAN

1961-62 TO 335 373.87 416.00 241

1965-66

ANNUAL PLAN

1966-67

1967-68

1968-69

120

88

70

110.05

90.64

50.10

97.00

128.00

62.00

16

179

41

4 TH PLAN

1969-70

1970-71

1971-72

1972-73

1973-74

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

5 th Plan

1974-75

1975-76

1976-77

1977-78

1978-79

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

Annual Plan

1979-80 1200 1362.85 1752.00 369

6 th 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

1752.00

1293.00

1289.00

1276.00

1286.00

3236

2929

3777

3491

3611

7 th 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

1196.00

1426.00

1559

1459

937

1468

1061

2615

2200

4505

6600

7581

8105

4852

8 TH 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

217

246

223

732

737

810

817

845

3259

2607

2889

2260

967

1903

1312

1542

DISTRICTWISE VILLAGE ELECTRIFICATION IN ORISSAON31/3/1999

SL

NO

NAME OF DIST.

NO.OFVILL-AGES

NO.OFVILL.

ELECTRIFIED

UPTO 97-98

%OF VILL.

ELECTRI-FIED

NO.OF VILL.

ELECTRI-FIED

NOOF VILL.

ELECTRIFIED

UPTO 3/31/99

%OF. ELECTRI-FIED

NO.OF. VIL

L

NO.OFHA

M

UPTO 97-98

IN 98-99 NO.OF.

VILL

NO.OF.HAM

UPTO

31/3/99

1 ANGUL 1632

1173

42 71.87 67 1240 42 75.98

2 BALASORE 2586

2136

97 82.68 203 2339 97 90.44

3 BARAGARH 1177

1151

135 97.79 9 1160 135 98.55

4 BHADRAK 1224

981 42 80.14 24 1005 42 82.10

5 BOLANGIR 1761

1478

21 83.92 17 1495 21 84.89

6 BOUDH 1101

587 5 53.71 29 616 5 55.94

7 CUTTACK 1762

1702

185 96.59 4 1706 185 96.82

8 DHENKANAL

1060

910 51 85.84 26 936 51 88.30

9 DEOGARH 698 234 33 33.52 3 237 33 33.95

10 GAJAPATI 1457

690 135 47.35 17 707 135 48.52

11 GANJAM 2763

2308

405 83.53 58 2366 405 85.63

12 JAJPUR 1563

1403

146 89.76 28 1431 146 91.55

13 JAGATSINGPUR

1318

1221

113 92.64 6 1227 113 93.09

14 JHARSUGUDA

353 345 60 97.73 3 348 60 98.58

15 KANDHAMAL

2336

1069

20 45.76 18 1087 20 46.53

16 KALAHANDI

2069

1179

27 56.98 0 1179 27 56.98

17 KENDRAPARA

1387

1206

119 86.95 12 1218 119 87.81

18 KEONJHAR 2052

1680

12 81.87 18 1698 12 82.74

19 KHURDA 1350

1184

239 87.70 58 1242 239 92.00

20 KORAPUT 1869

966 113 51.88 6 972 113 52.00

21 MALKANGIRI

885 343 69 39.32 15 358 69 40.45

22 MAYURBHANJ

3717

2289

39 61.58 108 2397 39 64.48

23 NAYAGARH 1511

1008

180 66.71 39 1047 180 69.29

24 NOWRANGPUR

882 649 65 73.58 8 657 65 74.48

25 NUAPARA 643 435 2 67.65 0 435 2 67.65

26 PURI 1589

1502

263 94.52 20 1522 263 95.78

27 RAYAGADA 2440

927 80 37.99 5 932 80 38.19

28 SAMBALPU 124 811 108 64.98 4 815 108 65.30

R 8

29 SONEPUR 808 618 9 76.48 6 624 9 77.22

30 SUNDERGARH

1666

1440

73 86.43 6 1446 73 86.79

TOTAL 46907

33625

2888 71.68 817 34442

2888

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

OLC Pvt. Total OLI

C

Pvt. Tota

l

OLIC Pvt.

1 2 3 4 5 6 7 8 9 10

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

ANGUL

BALASORE

BARAGARH

BHADRAK

BOLANGIR

BOUDH

CUTTACK

DHENKANA

L

DEOGARH

GAJAPATI

GANJAM

JAJPUR

JAGATSING

PUR

JHARSUGU

DA

KANDHAM

AL

KALAHAND

I

KENDRAPA

RA

KEONJHAR

389

1977

329

729

341

180

901

66

516

244

1284

587

1384

123

447

153

1377

812

306

428

62

819

1776

3955

4492

1307

5246

442

2220

383

2069

806

7191

1711

1933

1647

1865

741

914

2044

801

457

80

1737

2165

5932

4821

2099

5587

622

3121

449

2585

1050

8475

2298

3317

1770

2312

894

2291

2856

1107

885

142

2556

3

14

-

-

15

6

8

-

-

9

30

2

23

-

18

-

13

5

5

12

3

2

5

352

209

-

21

4

17

-

4

1

45.

41

20

44

1

5

36

3

26

5

1

9

8

366

209

-

36

10

25

-

4

10

75

13

43

44

19

5

49

8

31

17

4

11

392

1991

329

792

356

186

909

66

516

253

1314

589

1407

123

465

153

1390

817

311

440

65

821

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

30

KHURDA

KORAPUT

MALAKANG

IRI

MAYURBHA

NJ

NAYAGARH

NOWRANGP

UR

NUAPARA

PURI

RAYAGADA

SAMBALPU

R

SONEPUR

SUNDERGA

RH

234

292

191

406

831

262

202

412

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

TOTAL 1628

4

5570

0

67430 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 1998-

99 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. That’s the cause; the GRIDCO is giving more

emphasis to these rural areas.

ELECTRIFICATION OF KUTIR JYOTI HOUSE HOLDS IN

ORISSA

SL.NO.

NAME OF THE DISTRICT

UPTO 97-98KUTIR JYOTI CONNECTION

TOTAL CONNECTION

UPTO97-98KUTIR

JYOTI CONNECTION

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

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

_

_

_

_

_

_

_

_

_

_

_

_

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

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

STREET LIGHTS

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

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

SLNO.

CATEGORY OF

CONSUMERS

Voltage of suppl

y

Demand

charge Rs/KW Rs/KV

A

Energy

charge P/K Wh

Customer

Service charge Rs/Cus

t

Monthly minimum fixed charge of 1st

KW or part[Rs]

Monthly

Fixed charge for any

additional KW or

part[Rs]

Rebate P/K Wh

A B C D E F G H I

LT CATEGORY

1 Kutir Jyoti 200/400V

Fixed monthly charge 30 30

Domestic[1st

100 units]200/400V

120

2 Domestic[2nd

100 units]200/400V

170 20 10 10

Domestic[Balance units]

200/400V

245

Commercial[1st100units]

200/400V

270

3 Commercial[2nd 100units]

200/400V

360 30 20 10

Commercial[Balance units]

200/400V

410

4 Irrigation 200/400V

90 20 10 10

5 Street Lighting 200/4 245 20 10 DPS

00V

6 Small Industry 200/400V

245 40 30 10

7 Medium Industry

200/400V

270 80 50 DPS

8 Public Institutions

200/400V

245 80 50 DPS

9 Public Water Work<100KW

200/400V

270 80 50 DPS

10

Public Water Work

200/400V

200 270 30 DPS

11

General Purpose

200/400V

200 270 30 DPS

12

Large Industry 200/400V

200 270 30 DPS

HT CATEGORY

13

Bulk Supply[domest

ic]

11/33KV

10 160 250 10

14

Irrigation 11/33KV

30 80 250 DPS

15

Public Institution

11/33KV

50 240 250 DPS

16

Commercial 11/33KV

50 260 250 10

17

Medium Industry

11/33KV

50 260 250 DPS

18

General 11/33KV

200 260 250 DPS

19

Public Water Works

11/33KV

200 260 250 DPS

20

Large Industry 11/33KV

200 260 250 DPS

21

Power int ind 11/33KV

200 260 250 DPS

22

Mini Steel Plant

11/33KV

200 240 250 DPS

23

Railway traction

11/33KV

200 260 250 DPS

24

Colony Consumption

11/33KV

160

DPS DELAYED PAYMENT SURCHARGE

MISCELLANEOUS CHARGES

[A] MONTHLY METER RENT

A B C D E F G H I

EHTCATEGORY

25 General Purpose

132KV 200 250 700 DPS

26 Large Industry 133KV 250 250 700 DPS

27 Railway traction

134KV 200 250 700 DPS

28 Heavy Industry

135KV 200 250 700 DPS

29 Power int. ind 136KV 200 250 700 DPS

30 Mini Steel Plant

137KV 200 240 700 DPS

31 Emergency Supply to CPP

138KV 350 700 DPS

32 Colony Consumption

139KV 160

D.C.SERVICE RATE FOR DC SUPPLY

33 Domestic Rate at SI 2+25% Surcharge

Rate at SI 3+25% Surcharge

Rate at SI 4+ 25% Surcharge

10

34 Commercial 10

35 Small Industry 10

SL.NO TYPE OF METER METER RENT

1 Single phase electromagnetic

KWh meter

Rs 15

2 Three Phase electromagnetic

KWh meter

Rs 30

3 Three Phase electromagnetic

trivector meter

Rs 800

4 Trivector meter for railway

traction

Rs 800

5 Single Phase static KWh

meter

Rs 35

6 Three Phase static KWh meter Rs 250

7 Three Phase static trivector

meter

Rs 800

8 Three Phase Static trivector

meter

Rs 800

[B] RECONSTRUCTION CHARGES

SL.NO TYPE OF CONSUMER RECONNECTION

CHARGES

1 Single Phase domestic Consumers Rs. 30

2 Single Phase other Consumers Rs. 50

3 Three Phase line Rs. 100

4 EHT and HT line 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 GRIDCO’s 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 GRIDCO’s 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-a-

days 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 country’s

electricity grid. According to minestry of Power India’s 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 doesn’t maximize technological

developments. For improving the performance of GRIDCO the following

measures can be taken.

(i) Announcement of mega power project policy.

(ii) Restructuring of SEBs to be encouraged

(iii) Increasing budgetary support for increasing power production.

(iv) Reducing Transmission and Distribution losses by adopting

advanced technology.

(v) Providing high quality coal and skilled labour.

(vi) 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.

Financial Management & Analysis of Grid-New

Documents

variable working

pump set energisation

kutir jyoti

fixed working

delayed payment

special working

kutir jyoti

power factor