Report of Indian Institute of Public Administration ... - Ministry of Power

Gujarat
Investments Made to Improve Generation Capacity and Efficiencies
(Rs crore)
Particulars
2000
-01
2001
-02
200
2-03
2003-
04
2004-
05
200
5-06
New capacity 7 28 24 36
Renovation and
modernisation
21 76 282 38 107 16
From the above tables it is seen that there is no significant addition to the generating
capacity in GSECL in the last six years. The performance in the last two years has
improved significantly, increasing the PLF to 72.48 per cent and availability to around
85 per cent. Oil consumption and unscheduled breakdowns have been reduced.
Considering the fact that almost 90 per cent of the plants are about 20 years old, the
performance is commendable.
The manpower deployed per MW of installed capacity works out to 1.90.
The company has submitted ARR in Jan 2006 and GERC has given its decision on the
same.
Planning for Capacity Additions
The company has formulated its business plan for the period ending 2011-12. It is
proposed to add 1,887 MW of new capacity with estimated investment of Rs 5,964
crore and carry out LE and R&M of old plants of 1,860 MW capacity with estimated
investment of Rs 1,904 crore.
Way Forward
Life Extension Works
Estimated requirement of investments for Life Extension (LE) works of Rs 1,904
crore appears to be on lower side. Government of Gujarat has indicated that in the bids
received by it, cost/MW is not in the range of CEA estimates and that the agencies to
be entrusted with LE works are reluctant to provide assurance of achieving desired
performance levels over a long period. Gujarat has, therefore, almost decided not to
proceed with LE works. Since GSECL is considering investments for LE works in
respect of 1,860 MW, almost the same capacity as installation of new capacity, it
would be advisable to identify related risks of not being able to achieve expected
performance levels even after carrying out LE and R&M works and take suitable
action.
9.23