An Economic Study of Harduaganj Thermal Power Station at Augarh
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AN ECONOMIC STUDY OF HARDUAGANJ THERMAL POWER STATION AT AUGARH OISSERTATION SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OP THE DEGREE OF iila£iter of ^iiQiop^p IN Economics BY Shaukat Haseen UNDER THE SUPERVISION OF Df. Ashok Mittal DEPARTMENT OP ECONOMICS ALIGARH MUSLIM UNIVERSITY, ALIGARH (INDIA) JANUARY 1991 lei ^ Co-:-P^** .%ei onv 1 I DS1863 i/.! •J""! LI ALIGARH MUSLIM UNIVERSITY !)jj).ir(inL'ii( ol i cmidiiiits ALIGARH (INDIA) Rcf No Dated :- V \ 1 TO WHOM IT MAY CONCERN This Is to certify that Miss Shaukat Haseen has worked for her M. Phil degree under my supervision on "An Economic Study of Harduaganj Thermal Power Station at Aligarh". The M. Phil dissertation is her original work and is fit for submission for the award of M.Phil degree in Econonrdcs. .-,\.u-.-h-^- A3H0K MITTAL CONTENTS Page ACKNOWLEDGEMENTS i-11 LIST OF TABLES iii-iv CHAPTER I - INTRODUCTION 1-7 Problem of The Study 1 Objectives And Scope of the Study 2 Data Base And Methodology 3 Definitions of the Terms Used 4 Limitation 5 Plan of the Study 6 CHAPTER II - POWER SECTOR IN INDIA 8-34 Power Resources in India 8 Growth of Powsr Sector in India 10 Growth of Installed Power Capacity In India 11 Growth of Power Generation In India 14 Sectorwise Power Consumption 16 Transmission 18 Thermal Power Plants In India 19 Renovation And modernisation of Thermal Power Plants 25 Supply of Coal to Thermal Power Plants 27 Review of the Literature 28 Economics of Power Supply In Uttar Pradesh 31 Summary 34 CHAPTER III - HARDUAGANJ THERMAL POWER STATION: PERFORMANCE ANALYSIS 35-71 Expansion of Harduaganj Thermal Power Station 35 Perfonnance of 'A' Power House 37 Performance of 'B* Power House 48 Performance Of 'C Power House 61 3u mm a ry 71 CHAPTER IV - HARDUAGANJ THERMAL POWER STATION: REVENUE & EXPENDITURE 7 2-94 Financial Sources of UP3EB 7 2 Amendments in Electricity Supply Act, 1948 7 3 Harduaganj Power Station: Financial Sources 7 5 Revenue Account 7 6 Capital Account 83 Coal Expenditure 8 6 Oil Expenditure 90 Summary 93 CHAPTER V - CONCLUSION 95-109 Summary of The Study 95 Conclusion 103 Suggestions 108 APPENDICES . 110-126 BIBLIOGRAPHY 127 ACKNOWLEDGEMENTS I feel in duty bound to express tny deep sense of gratitude to Dr. Ashok Mittal for his guidance and supervision o£ my research work and for providing lead when needed. His valuable suggestions served as a beacon light to ma throughout my journey towards completion of my work, I am also obliged to give humble thanks to Professor (Mrs.) Kishwar Shabbir Khan, Chair-person, Department of Economics for providing necessary facilities needed for carrying on my work and also for her precious suggestions which went a long way to determine the scope for my research work. I sincerely thank to Professor M.A. Raz for taking the pains of going through the manuscript of my work. My sincere thanks are also due to Professor T.V.S, Ram Mohan Rao (I.I.T., Kanpur) for his valuable suggestions. My field work at Harduaganj Thermal Power Station which looked arduous was made easy by the humane and sympathetic treatment extended by a full team of officers there, namely, Mr. S. Zaidi, Mr, Singh and Mr, P.S.L, Bhatnagar^ Executive Engineers. I thank them for all their ii kindness very very sincerely. I ani no less thankful to Mr. Verma, Accounts Officer, Harduaganj thermal power station, who helped me to collect relevant information f rom hi s dom ai n. I can not forget the extremely helpful assistance rendered by the respectable Librarians and staff of the ' following Libraries which I had to visit in connection with my work; Ministry of Energy, New Delhi, Central liliecLricity Authotity, New Delhi. Department of Economics, A.M.U., Aligarh and Maulana Azad Library A.M.U., Aligarh. My thanks are also due to Mr. M. Owais Khan who has realy taken pains in typing the dissertation quickly and efficiently. I shall be immensely pleased if they accept my heart felt thanks. ( Shaukat Haseen ) iii LIST OP TABLES Table Page No. 2.1 Installed Power Capacity In India (MW) 12 2.2 Power Generation In India (1950 to 198 6-87)(Mu) 15 2.3 Sectorwise Power Consumption (1960-61 to 1987-88) in Percentage 17 2.4 Thermal Power Plant Performance in India (in percentage) 20 2.5 Plant Load Factor of Thermal Power Plants By States (198 1-82 to 1987-88) 22 2.6 Plant Load Factor Of Thermal Power Plant In Uttar Pradesh 24 2.7 Plant Load Factor: Before and After Renovation in Uttar Pradesh 26 3.1 'A' Power House, Unit - I, Power Generation, PLF, AF and Outages 38 3.2 Outages in 'A' Power House Unit I 40 3.3 'A' Power House, Unit II 42 Power Generation, PLF AF and Outagas 3.4 Outages in 'A' Power House, Unit II 44 3.5 'A* Power House, Unit - III Power Generation, PLF, AF and Outages 45 3.6 Outages in 'A* Power House Unit III 47 3.7 'B' Power House, UNIT - I 30 Power Generation PLF AF and outages 3.8 Outages in 'B' Power House Unit-I 3.9 'B' Power House, Unit II Power Generation, PLF, AF ami Outages 53 3.10 Outages in 'B* Power House Unit II 55 3.11 'B' Power House, Unit - III 55 Power Generation, PLF AF and Outages 3.12 Outages in 'B' Power House Unit III 58 IV 3.13 'B' Power House Unit IV Power Generation, PLF, AF and Outages 59 3.14 Outages in 'B' Power House Unit IV ,60 3.15 'C Power House, Unit I Power Generation, PLF, AF and Outages 62 3.16 Outages in 'C Power House Unit I 64 3.17 'C Power House, Unit-II Power Generation, PLF, AF and Outages 65 1.18 Outages in 'C Power House Unit II 67 3.19 'C Power House, Unit III Power Generation, PLF, AF and Outages 68 3.20 Outages in 'C Power House Unit III 70 4.1 Revenue Account: Income And Expenditure 871 6 4.2 Revenue Income 8758 4.3 Revenue Expenditure 4.4 Budget Estimate of Capital Account 4.5 Consumption and Cost of Coal in 'A* Power House 87 4.6 Consumption and Cost of Coal in 'B* 4.7 ConsumptioPower Housne And Cost of Coal at 'C power 88 House 90 4.8 Consumption and Cost of oil in 'A* Power House 91 4.9 Consumption and Cost of Oil in 'B' Power House 9 2 CHAPTER I INTRODUCTION Power is the basic input for industrial development and economic growth of a country. "The availability of easily transportable and cheap energy transformed the face of western world through wide-spread industrialisation, generation of new employment and consequent urbanisation, modernisation of agriculture, increase social and civic amenities for community etc. Indeed electricity delinked the working of human mind from primeval and tribal attitudes to one of enlightened vision." (Kumar, R. , 1986). In this chapter an attempt has been made to explain the problem, scope, objectives and limitations of the present study. The data base, methodology and plan of the study have also been underlined in brief. 1.1 PROBLEM OF THE STUDY : Electricity is an important intermediate input in the production of various commodities. It is mainly produced in the public sector in India with three types of sources namely^hydel, thermal and nuclear. The thermal power plant constitute the back-bone of power scenario in India as they contribute the highest share in the total production of electricity and hence,are very important for the economy. It is being generally observed that the thermal power plants are generating electricity much less than their installed capacity, in particular, the Hard"ua- ganj thermal power plant. Harduaganj thermal power plant IS one oE the oldest thermal power plants which is catering to significant portion of electricity in western Uttar Pradesh, some of the units in Harduaganj thermal power plant have run more than their life. Fire accident had taken place many a times in the power station. As a consequence of the fire there wa3 a complete shut-down of the units for a long period of time. Availability factor was low because of major overhauling of the units. Supply of coal is irre gular and inadequate to the plant due to shortages of railway wagons and other technical reasons. Coal received by the plant is of sub-standard quality. Oil is used to lubircate the machines due to inferior quality of coal. Increased consumption of oil is raising the total cost of electricity generation because oil is very expensive. The cost of eluctticity generation is continuously increasing. Therefore, the economic viability of the aforesaid thermal power plant deserves an investigation. 1.2 OBJECTIVES AND SCOPE OF THE STUDY : The objective of the present study is to examine the performance of the plant and to identify the factors responsible for the poor performance of the plant. Another objective is to examine financial aspects including revenue income and expenditure of the plant. The study is made on the performance of the plant from 1961-62 to 1988-89 and on financial operations from 1977-78 to 1987-88. 1.3 mTA BASE AND METHODOLOGY : The data source of this study is mainly secondary, obtained from various divisions of Harduaganj thermal power plant and Government publications. There is no Government agency which compiles data and information on the individual thermal power plant regularly. Harduaganj thermal power plant does not have any statistical division, hence,data collection has been a serious problem.