88Th Annual Report FY07
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The Tata Power Company Limited Bombay House 24 Homi Mody Street Mumbai 400 001 Call our TOLL FREE investor Helpline for any shareholder information at 1800-22-8775 powering the future ...energising the pace of growth 88th88th AnnualAnnual ReportReport 2006-20072006-2007 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_Co1R_2k6_2k7_Co1 1 77/4/07/4/07 99:01:23:01:23 PPMM 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_Co2R_2k6_2k7_Co2 2 77/4/07/4/07 99:01:26:01:26 PPMM powering the future ...energising the pace of growth As a leading private utility in the Indian power sector, Tata Power has set the momentum of growth and created new benchmarks in operational effi ciencies. In keeping with its pioneering spirit, Tata Power is bringing in new technology, investing in global resources and driving towards a three-fold growth in the next fi ve years. And to achieve this, the Company is spreading its operations nationwide, marking global footprints and redefi ning paradigms. Tata Power’s strength lies in fulfilling its commitments and ability to manage well in changing environment. The Company’s customer-centric initiatives have raised the bar of customer satisfaction for the industry. It is time now to energise the pace of growth and Tata Power is all set to establish new milestones in this sector. 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C5R_2k6_2k7_4C5 5 77/4/07/4/07 99:02:24:02:24 PPMM Financials at a glance Revenue Earning Per Share (EPS) Annual Sales of 14,422 MUs surpassed the previous high of 13,616 MUs in FY 06. Revenues touched Rs. 4,715.32 crores as compared to Rs. 4,534.16 crores in the previous year. Tata Power has registered the highest ever Profi t After Tax (PAT) at Rs. 696.80 crores as against Rs. 610.54 crores for the previous year. The highest ever Dividend was recommended at Rs. 9.5 per share. North Delhi Power Limited (NDPL) posted revenues of Rs. 2,052.20 crores, increasing 11.15% as compared to the previous year. Net Profi t touched Rs. 185.65 crores as compared to Rs. 112.53 crores in the previous year. 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C6R_2k6_2k7_4C6 6 77/4/07/4/07 77:02:42:02:42 PPMM Distributable Profi ts Networth Powerlinks Transmission Limited in its fi rst year of operations has earned Revenues of Rs. 135.01 crores and PAT of Rs. 20.57 crores. Tata Power Trading Company Limited (TPTCL) traded 1,205 MUs during the year as compared to 675 MUs in the previous year, thereby resulting in an increase in its Revenues by 191% to Rs. 603.76 crores from Rs. 207.76 crores in the previous year. TPTCL registered a PAT of Rs. 3.84 crores as against Rs. 3.18 crores in the previous year. Strategic Electronic Division (SED) registered Revenues of Rs. 51 crores against Rs. 38.18 crores during the previous year. 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C7R_2k6_2k7_4C7 7 77/4/07/4/07 77:02:43:02:43 PPMM Operational highlights Trombay – golden jubilee Hydro power stations North Delhi Power Limited (NDPL) Tata Power’s Trombay thermal The hydro power stations The Aggregated Technical and power station completed registered the highest ever Commercial Losses (AT & C) have 50 years of operation in 2006. generation at 2,138 MUs. This been brought down from The 500 MW Unit 6 at Trombay was aided by exceptionally good 53.40% to 23.70% in a period of achieved an all India record water levels in Tata Power’s lakes. 4 years and 9 months, as against of continuous operation of This has enabled the Company the regulatory target of achieving 12,405 hours. The station to generate more electricity 31.10% by the end of 5 years. This received the Golden Shield from its hydro power plants, thus has resulted in additional revenues Award from the Ministry optimising the balance between of Rs. 207.77 crores during the year of Power for best performance hydro and thermal generation as against Rs. 172.16 crores during for its Unit 7. and reducing the pressure of the previous year. rising fuel costs on the consumers. 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C8R_2k6_2k7_4C8 8 77/4/07/4/07 77:02:43:02:43 PPMM Powerlinks Transmission Strategic Electronic Division Tata Power Trading Company Limited (PTL) (SED) Limited (TPTCL) Powerlinks, the fi rst public-private Major programmes like electronic TPTCL, the fi rst trading entity to joint venture in power transm systems for Rocket Launchers, Fire be granted a trading licence by ission in India has commenced Control Computers for the Mail the Central Electricity Regulatory Battle Tank Arjun and Command commercial operation during Commission (CERC) has now and Control systems enabled SED the year. The Northern, Eastern, expanded operations to cover to register signifi cant growth and North-Eastern and Western the entire country including the turnover. During the year, SED regions are now in sync with the North-Eastern States. received seven manufacturing commissioning of this line, thus licences under new Defence creating a transmission highway Procurement Procedures, for transfer of power to Northern making SED eligible to receive region including Delhi from Request for Proposals for major upcoming generation project in programmes from the Ministry North-East region. of Defence. 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C9R_2k6_2k7_4C9 9 77/4/07/4/07 77:02:44:02:44 PPMM Energising the pace of growth FIRST 4,000 MW ULTRA MEGA POWER PROJECT (UMPP) MUNDRA Graphical representation. Not to scale. Pioneering 800 MW super-critical technology in India Tata Power won the bid for the the lead procurer on behalf of all covers 45% of the total ordering 4,000 MW Mundra UMPP in Gujarat procurers. The Company has also and reinforces Tata Power’s at a levelised tariff of Rs. 2.26/unit. signed a contract for complete commitment to accelerate the The Company has acquired Coastal Boiler Island scope on EPC basis pace of the project by tying up Gujarat Power Limited, a Special with Doosan Heavy Industries schedules which would advance Purpose Vehicle formed for Mundra & Construction Co. Ltd., Korea. the completion of the project UMPP. Coastal Gujarat Power This is yet another ‘fi rst’ from the ahead of the bid stipulation. Limited has signed Power Purchase Company, bringing the fi rst 800 Thus, contributing to capacity Agreements (PPAs) with seven MW Unit to India and ushering in addition even within the 11th procurers (distribution licensees) the era of 800 MW super-critical Five-Year Plan. for the sale of contracted capacity technology. The contract for and supply of 4,000 MW electricity complete Boiler Island includes to these licensees. It also nominated super-critical boilers for the 5 units Gujrat Distribution Company as of 800 MW each. This contract 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C10R_2k6_2k7_4C10 1100 77/4/07/4/07 77:02:49:02:49 PPMM OPPORTUNITY TO OWN AND OPERATE WORLD-CLASS ENERGY BUSINESS 30% stake in coal mines of Bumi Resources Tata Power has signed defi nitive largest exporting thermal coal The acquisition specifically agreements to purchase 30% mines in the world, have excellent addresses the fuel requirements equity stake in two major coal export infrastructure and are for the upcoming 7,000 MW power Indonesian thermal coal producers: strategically well placed to act as projects which includes 4,000 MW PT Kaltim Prima Coal and PT a source of supply for increasing Mundra Ultra Mega Power Project Arutmin Indonesia, and a related regional demand. Together, KPC and (UMPP), Trombay and the coastal trading company owned by PT Arutmin produced approximately power project in Maharashtra. It Bumi Resources Tbk. As part of 53.5 MT of coal in 2006 with over also complements and supports the purchase, the Company has 95% sold to the export market. the assumptions made in the bid signed an Off take Agreement with This move also opens up for Mundra UMPP. KPC which entitles it to purchase opportunities for the Company to about 10 million tonnes of coal own and operate a range of world- per annum. The Coal companies class, competitive and profi table are together among the top three electricity and energy businesses. 0078-294_Tata78-294_Tata PPowerower AAR_2k6_2k7_4C11R_2k6_2k7_4C11 1111 77/4/07/4/07 77:02:52:02:52 PPMM Energising the pace of growth THE TALA TRANSMISSION PROJECT DELHI MANDOLA BHUTAN BAREILLY LUCKNOW GORAKHPUR MUZAFFARPUR PURNEA SILIGURI TALA BANGLADESH Graphical representation. Not to scale. India’s fi rst inter-state transmission project with public-private partnership Powerlinks Transmission Limited, was conceptualised to evacuate stability and reliability. Though a 51%: 49% joint venture between 1,020 MW of power from Bhutan a young company, Powerlinks is the Tata Power Company and and transmit it to the power defi cit already well established in the Power Grid Corporation of states in North India while also fi eld of project management and India Ltd., represents India’s fi rst facilitating the transmission of quality control systems. It has been inter-state transmission project with surplus power from the North- accredited with the following: public-private partnership since Eastern region. The successful The Quality Management System the enactment of the Electricity Act commissioning of the Tala certification ISO 9001:2000 and paves the way for similar Transmission system ahead of Environmental Management successful partnerships in this schedule in 2006 has led to the System certifi cation ISO 14001:2004 sector. The Tala Transmission synchronisation of the Northern The Occupational Health & Safety Project entailed the construction of Grid with the Western Grid, the Management System certifi cation, 1,200 kms. of 400 KV transmission Eastern Grid and the North-Eastern OHSAS 18001:1999.