Energy is one of the prime movers of progress for a developing nation like India; witha billion-plus population and their aspirations for a better quality of life. If India'sattractive economic growth of over 7.5% needs to be sustained and enhanced the powersector has to be made robust and resilient to headwinds.
India's power sector has recently witnessed many positive developments. However thereare few areas like capacity utilisation and peak deficit which needs to be addressed. Coalavailability has touched a new high so much so that the Government is now confident thatsupply will outstrip demand. But the plant load factor or the capacity at which thermalpower plants operate saw a decline.
Interestingly there seems to be a tectonic shift in the manner in which renewables aregaining focus in India and globally. Renewables like solar and wind power are now at theforefront of all policy discussions. The Government's 'Power for All' initiative spans theentire spectrum of the power sector including generation transmission distributionrenewables energy conservation and customer initiatives. The programme is focused onmodernising transmission and distribution infrastructure in India. These developmentsaugur well for the sector going forward.
With a diversified portfolio of conventional and renewables your Company is poised toplay a more significant role in India's power sector. We have emerged as an integratedpower company with business across trading distribution generation logistics and fuelmanagement.
YEAR UNDER REVIEW
During FY 2015-16 the Company achieved a gross turnover of Rs. 586 crore. The PBTstood at Rs. 43.54 crore vis-a-vis Rs. 36.61 crore in FY 2014-15 and a net profit of Rs.31.9 crore against net profit of Rs. 24.18 crore in FY 2014-15. Our earnings per sharestood at Rs. 0.2 for the year ended on 31st March 2016. We recommend a dividend of 5% tothe shareholders.
KEY ACHIEVEMENTS FY 2015-16
Our performance is a reflection of our focus on generating (thermal and renewableenergy) and providing electricity at low cost to consumers. Our consistent drive toimprove our networks and best-in-class operations have enabled us to achieve T&Dlosses of 2.31% far lower compared to the industry average of around 25%.
We commissioned the charging of our 220/33 kV substation at J.K. Nagar Asansolsubdivision West Bengal. The J.K. Nagar substation connects us to the state grid andprovides the flexibility to source power for our customers at competitive rates. Thesubstation will also reinforce our distribution capacity by receiving power at 220 kVlevel. This will help meet the rising power demand in the Asansol-Ranigunj industrialbelt.
Our Gaya distribution franchisee under The South Bihar Power Distribution CompanyLimited which serves Gaya Bodh Gaya Manpur and its adjoining areas now has asignificantly larger (26% increase) consumer base. India Power Corporation (Bodhgaya)Limited has reduced the T&D losses from 58% (March 2015) to 45% (March 2016) byundertaking stringent technology-driven monitoring initiatives.
We are setting up a 450 MW (3 x 150 MW) coal-based power plant in Haldia West Bengalthrough our Special Purpose Vehicle (SPV) India Power Corporation (Haldia) Limited. Weplan to commence commercial generation of the first 150 MW by December 2016. The secondand third units are slated to be commissioned subsequently in three months and six monthsrespectively.
The project has already obtained all requisite clearances including environmentalclearance consent for establishment water allocation and coal linkage. Power generatedfrom the plant shall be evacuated through West Bengal State Electricity TransmissionCompany's (WBSETCL) 220 kV substation in Haldia.
India Power Green Utility Private Limited a wholly-owned subsidiary of IPCL wasincorporated with an objective of foraying into developing and/or acquiring renewableenergy assets to build a sizable portfolio of green energy.
Matsya Shipping & Ports Private Limited a wholly-owned subsidiary of IPCL wasincorporated primarily with an objective to foray into Shipping & Ports sector whichcould also be used for coal movement to be utilised for your company's various powerplants.
We have always been a steady performer and will continue to improve the standards ofour performance going forward. With better and brighter days in the power sector ourpriorities comprise the following:
Commissioning and stabilising our Haldia 450 MW power plant
Increasing operational efficiencies through the adoption of best-inclass equipment andtechnologies
Reinforcing our customer centricity by ensuring consistent power supply
Reducing the target AT&C losses at Gaya
Focusing on seamless backward integration
Our community initiatives will continue to receive priority; and we wish to enhance thescale and scope of our intervention in the coming years. At the same time we arecommitted to reduce our environmental footprint by adopting green technologies andindustry-next practices.
Exploring new opportunities in the renewable energy space Strengthening thecapabilities of our people and the reputation of our brand through various initiatives
Our community initiatives will continue to receive priority; and we wish to enhance thescale and scope of our intervention in the coming years. At the same time we arecommitted to reduce our environmental footprint by adopting green technologies andindustry-next practices. The leap forward from a good to becoming a great company is notan easy one. There are challenges and hurdles along the way but the opportunities arehuge; and those with courage capabilities and commitment can succeed in the long run. Iam confident we have all that it takes to reach the next altitude. I welcome you all tobe a part of this extraordinary journey.
With best wishes