JAIPRAKASH HYDRO-POWER LIMITED
ANNUAL REPORT 2008-2009
It gives me immense satisfaction to felicitate you for your contribution in
supporting the Group's listed power company, which right from the time it
commissioned its BASPA-II Hydroelectric Project, has inspired people across
the nation for harnessing the power potential of the country. The decade
gone by, especially the last five years, have seen a momentous period for
the Group and with the determination and dint of hard work, your company,
today is poised to be amongst the most successfully run power companies in
the country with world class assets and sustained profitability.
Jaypee Group is the only integrated solution provider for Hydropower
projects in the country with a track record of strong project
implementation in different capacities and participation in projects that
have added over 8840 MW of Hydroelectricity to the National grid between
2002 to 2008 AN UNPARALLEL FEATURE IN INDIAN POWER SECTOR.
You would be proud to know that in 'pursuit of excellence' which is an
integral part of group culture, all workers, staff and officers engaged in
Group's 300 MW BASPA-II Hydroelectric Power Station were successful in
bagging GOLD SHIELD for meritorious performance in power sector from the
Ministry of Power for the year 2007-08, a step forward from the SILVER
SHIELD, BASPA-II HEP won for the year 2004-05.
In this defining moment of history, where India strives to achieve an
honorable presence in august company of developed nations, development of
all sectors assumes greatest attention from all Indians. Power sector,
which directly impacts the common man as well as aids the economic growth
of the nation, today attracts the focus of all. It is humbling to see while
as a country we continue to struggle to meet peak shortfall of almost 14000
MW where, in the 11th five yearplan, capacity addition of 78700 MW is
proposed, your organization is mandated to be a power producer with thermal
- hydro mix of over 13520 MW in less than 7 years from now.
The 1000 MW Karcham Wangtoo project (Himachal Pradesh) is under advanced
stage of implementation and is poised to be completed by 2011 (six months
ahead of schedule). In addition, with 3200 MW projects coming up in
Arunachal Pradesh and 720 MW in Meghalaya, the Group will have total
Hydropower generation capacity of over 5000 MW by 2016. It will be the only
company in private sector which will contribute 2000 MW (Hydro & Thermal)
in the 11 th plan to the nation.
For a country of our size, policy makers have recommended a power regime of
60% hydro and 40% thermal. As an organization, with deep faith in potential
of our country, it is not a coincidence that your portfolio in power
business has a judicious mix of thermal and hydro, with thermal accounting
for 7850 MW and hydro accounting for 5620 MW
YEAR Fuel Capacity (MW) Hydro: Thermal mix
FY-07 Hydro 700
FY- 12* Hydro/Thermal 2200 **77:23
FY- 14* Hydro/Thermal 7520 23:77
FY- 16* Hydro/Thermal 13470 42:58
* Projections **2200 MW includes 1000 MW of Karcham-Wangtoo & Phase -I of
Bina Thermal project i.e. 500 MW.
As a responsible corporate citizen, it is our bounden duty to give back to
the society with interest, to enable future citizens of the nation feel
proud of their forefathers. You would be delighted to know that your
company, with 13000 MW capacity of power, has ensured that 6600 MW of
thermal power would come from super critical technology evidencing best
environment care while 300 MW BASPA-II Hydroelectric Station and 400 MW
Vishnuprayag Hydroelectric Station today earn Verified Emission Reduction
(VER), which is testimony of the faith the regulatory bodies of the world
have reposed in environment care by the company.
Your trust in the company has always enhanced our responsibility and
further increased our resolve to accelerate our efforts which results in
growth of company and enhances shareholders value. Therefore, it was found
appropriate that business of power generation is consolidated under one
umbrella which would enable your organization to leverage its balance sheet
for tapping financing from international market at competitive price to
enable us keep cost of creating new capacities under control. While you
would be invited for your consent for the proposed amalgamation in due
course, I am taking this opportunity to share this development, which your
Board of Directors have approved, based on the emerging opportunities in
the international market.
We see unparallel opportunities for growth in power sector. Electricity,
today, is being traded through exchange which is aimed to get the best for
the customer in times to come. Therefore, company with the most competitive
cost of power generation would be the winner. Your world class assets,
consistent output and well engineered raw material supply chain would make
company face fiercest of competition with aplomb. It would be our continued
endeavour to improve our efficiency, maintain our consistency and work to
achieve growth forshareholders.
At this juncture, I would like to place on behalf of the Board of Directors
of the Company our deepest gratitude to Banks, Financial Institutions,
State Electricity Boards, Regulatory Authorities of different states and
you, without whose trust and support we would not have reached thus far.
Every member of the company continues to be inspired by one fact that,
'SUCCESS IS NOT A DESTINATION BUTA JOURNEY'