PROJECT REPORT ON GENERATION AND CONTROL OF POWER IN NTPC FARIDABAD Submitted for the partial fulfillment of the degree in M.Sc (Electronics) Submitted by:- SATENDER 08-MELS-17 Department of Applied Science & Humanities Faculty of Engineering and Technology
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PROJECT REPORTON
GENERATION AND CONTROL OF POWER IN
NTPC FARIDABAD
Submitted for the partial fulfillment of the degree in M.Sc (Electronics)
Monitoring and control equipment, water treatment facilities
Switchyards and related facilities
(2) Transmission & transforming facilities
440kV transmission line from the Dadri-Ballabgarh section to the Faridabad Power Station
(approx. 5km)
440kV transmission line from the Ballabgarh-Jaipur section to the Alwar Substation (approx.
18km)
Construction of a new substation (at Alwar)
Expansion of an existing substation (at Ballabgar
A yen loan of 56,154 million was scheduled to cover the power plant and T&T facilities costs,
excluding the land acquisition costs, project management costs, taxes and part of the costs for the
switchyards, however, the portion necessary for the works to be undertaken by the end of FY95
(23,536 million yen) was in fact provided.
1.4 Borrower/Executing Agency
The President of India / National Thermal Power Corporation Ltd. (NTPC),
Powergrid Corporation of India Ltd.: POWERGRID
1.5 Outline of Loan Agreement Loan Amount Loan Disbursed Amount
23,536 million yen 19,937 million yen
Exchange of Notes Loan Agreement
December 1993 January 1994
Terms and Conditions -Interest Rate -Repayment Period
(Grace Period) -Procurement
2.6%
30 years (10 years)
General untied Final Disbursement Date March 2001
2. Results and Evaluation
2.1 Relevance
The project’s objectives were to eliminate supply deficits in the Northern region and contribute to living standard improvements and industrial development via the construction of a CCGT power
power. However, an 800MW output scale was found to be excessive in terms of securing fuel*
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and associated T&T facilities in Haryana State. As stated above supply deficits in the
region were manifest, moreover, in policy terms the project had been positioned as part of the Eighth
Five-Year Plan.
Initially the entire Northern region was established as the project’s beneficiary area, and plant
output was projected to be around 800MW so as to be capable of supplying an adequate volume of
power. However, an 800MW output scale was found to be excessive in terms of securing fuel*3. In
addition, with the exception of Haryana State, all other states in the region expressed reservations
about future purchases of power from the plant, citing high fuel costs*4, thus a proposal was made to
the Haryana State government regarding the conclusion of a power purchase contract, on condition
that the entire volume of power produced at the Faridabad Power Station be supplied to the state.
This proposal was accepted by NTPC and approved by the central government, in consequence of
which the project’s beneficiary area was narrowed down from the entire Northern region to Haryana
State alone.
The tables below illustrate the fluctuations in demand-supply volumes for Haryana State,
evidencing the straitened demand-supply position at around the time of project implementation
(1994).
Table 1: Demand-Supply Balance Haryana State Fiscal year 1991 1992 1993 1994 1995 1996 2001 Gap (%) -2.0 -2.3 -9.4 -4.8 -4.4 -5.9 -1.6
Table 2: Peak Supply Deficits Haryana State Fiscal year 1991 1992 1993 1994 1995 1996 2001 Gap (%) -20.2 -15.8 -9.6 -3.8 -16.5 -15.9 -3.3
The “Flare Gas Reduction Project” and "HBJ (Hazira-Bijaipur-Jagdishphur) Gas Pipeline
Reinforcement Project” that were instituted as external conditions (the drilling for and supply of
natural gas) for the establishment of this project, were respectively completed in 1999 and 1998*5.
As demonstrated above, the project’s relevance at appraisal and the present time may be inferred
from its political significance and the fact that it is fulfilling needs in the area.
2.2 Efficiency
2.2.1 Project Scope
Two modifications were made to project the scope as follows. Both changes were deemed
relevant in terms of the project’s objectives and background.
station
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Power Plant Output
Due to the comparatively favorable nature of the terms for generation facilities stipulated by the
winning contractor, plant output was fixed at 430MW*6. Switchyard facilities were also changed
from the initial 400kV to 220kV compatibility since with the reduction in plant scale
(800MW 400MW) and hence the plant was connected to 220kV power lines.
Transmission & Transformer Facilities
Since the plant turned out to be connected to the 220kV system, the construction / expansion of
400kV substations and the construction of incoming 400kV transmission lines were omitted, and two
220kV transmission line routes were constructed from the plant to existing substations.
2.2.2 Implementation Schedule
(1) Power Station
The power plant was completed in July 2000, two years and seven months behind the initially
planned date (December 1997). This delay was caused by approval procedures accompanying the
changes to output scale and so on, however, as Table 3 illustrates, construction of the plant per se
progressed extremely smoothly.
Table 3: Construction Schedule for Key Power Plant Components
Component Initial schedule Actual No. 1 Gas turbine generator 30 months 23 months No. 2 Gas turbine generator 32 months 27 months
Steam turbine generator 42 months 36 months
(2) Transmission & Transforming Facilities
For the same reason as cited above, construction started three years behind schedule, but was
completed in 16 months, which was essentially as per the plans (14 months).
The delays occurring prior to construction are believed to have been the product of limitations in
NTPC’s ability to deal, unassisted, with the numerous state governments and related organizations
involved in the process. However, given the fact that debate over the changes in output scale linked
to hold ups in the approval process, it might have been possible to confirm / verify the prospects for
power purchase by each of the states in advance, thereby reducing the duration of the delays.
However, it would be beneficial to evaluate how the construction work was completed in less time
than initially projected under such circumstances.
2.2.3 Project Cost
(1) Power Station
A comparison of initially planned costs and results reveals on overall underrun, with actual costs
being equivalent to around 51% (2,710 million yen) of the planned amount (approx. 5,340 million)
in a yen base. This is attributed to a 35%*7 appreciation in the value of the yen between appraisal
and completion, and to substantially lower costs for the following two components.
Main Plant (approx. 54% of initial plan)
The analysis conducted by the executing agency points to the fact that the highly vigorous global
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The analysis conducted by the executing agency points to the fact that the highly vigorous global
market for power station construction and the influence of technical innovations at the time of the
bidding meant that plant prices were stable, and moreover, that the successful bidder tendered a
competitive price.
Price Escalation (approx. 13% of initial plan)
This is primarily attributed to calm market conditions and the short construction period.
(2) Transmission & Transforming Facilities
The impact of changes to the project scope and the high value of the yen produced an overall
underrun in project costs, with the actual figure being approximately 78% (759 million yen) of the
initially planned costs (975 million yen).
This served to benefit Haryana State by enabling electricity tariffs to be set at low levels. With
regard to the yen loan portion of costs, since a second yen loan was unnecessary, the disbursed
amount was approximately 85% (19,937 million yen) of the amount authorized for the Phase 1 loan
(23,536 million yen).
2.2.4 Performance of Consultants & Constructors
No consultants were expressly employed for this project in consideration of the performance and
technical capabilities of the two executing agencies (NTPC and POWERGRID). The construction
contractor was highly evaluated by the executing agencies, something that is further evidenced by
the fact that the work was completed ahead of the initially planned schedule.
Since no consultants were engaged on this project a tripartite Project Coordination Committee
(PCC) was organized comprising the Ministry of Power (MOP), NTPC and POWERGRID to
monitor overall progress. The PCC was convened once every two to three months and site
inspections were carried out where necessary.
In the opinion of the NTPC committee representative, in “adapting the power plant construction
schedule to the schedules for the construction of the transmission network and the pipeline
connecting the HBJ line to the power plant”, the PCC made a substantial contribution to project
progress, including to the early stage completion of construction work. Specifically, this project had
different executing agencies for the power plant and T&T facilities components and there were also
a number of overlapping external conditions; the existence of a body aimed at coordinating the
various parties involved is considered to have been indispensable to its smooth progress. One of the
PCC members was an MOP representative*8 and this is believed to have bolstered the coordinative
capabilities of the committee.
Coincidentally, POWERGRID operates an Integrated Project Management and Control System
(IPMCS) independently. The IPMCS checks overall project progress via periodically convened
meetings. These meetings comprise representatives from all departments concerned in the project
who discuss the extent of progress and any hindering factors, and any necessary measures and/or
support are implemented on the basis of the IPMCS reports.
The outcome was that, in spite of delays prior to the start of construction, the efficient
functioning of the PCC and the IPMCS helped to secure effective results from the funds injected into
the project.
As the following table of operation indicators shows, overall conditions are quite favorable, with
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2.3 Effectiveness
2.3.1 Operation Indicators
As the following table of operation indicators shows, overall conditions are quite favorable, with
the plant having exceeded initial net electric energy production targets for the past three years and
posting capacity factor and forced outage rate that are essentially in line with the target figures. The
gas required for firing the plant is being supplied as planned and no particular problems have arisen
to date. Table 4: Target Attainment Level
FY Operation indicators 1999 20000 2001
Target 800.00 2200.00 2400.00 Net electric energy production (MWh) Actual 1060.67 2256.13 2796.80
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