KPCL Final Project

Karnataka Power Corporation Limited
INTRODUCTION
Organization study is a part of MBA programme which a student has to undergo during
their course of study. It narrows the gap between theoretical knowledge and practical situations.
Training makes a knowledge man into an experienced one. The principal objective of the study is
to inter-relate the theoretical aspects with practical things that are moving in industry, and
studying the organization as a whole.
No doubt that the necessary training will be imparted at the work place, but having a brief
knowledge before entering an organization will certainly help the individual in learning about the
organization quickly and to improve his performance for the betterment, as well as the
betterment of the organization for the organization for which he is working
Objectives of the study
 To get the practical exposure in the corporate world.

 To have a proper balance between the theory and practical knowledge.
 To study origin, growth, vision, mission and status of the organization.
 To study the functional departments exist in the organization.
 To evaluate the effectiveness of the organization.
 To study the problem areas in the organization.
 To provide some valuable suggestion to improve the efficiency in the
organization.
VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 1

COMPANY PROFILE
History of the Karnataka power sector
The gears of enterprise in Karnataka powered nascent industrial activity as early

as the year 1800, when the first sugar unit was set up. In 1902, Karnataka recorded another
“mega watt sized project first” - Asia’s first Hydro Electric Power Station in Shivanasamudram,
on the banks of river Cauvery.
In fact, Karnataka’s pioneering spirit in the field of power has been translated into several
major milestones. Karnataka was the first to embark on Alternating current, when Bangalore
City’s lighting scheme was completed.
Karnataka had the longest transmission line in the world in 1902, from Shivanasamudram to
KGF, covering a distance of 147 km. and Karnataka was the first state in the country to conceive
and set up a professionally managed Corporation to plan, construct, operate and maintain power
generation projects in the state. That’s the legacy that KPCL started with and built on.
KPCL – an overview
For over three decades, the Karnataka Power Corporation has been a prime mover and
catalyst behind key power sector reforms in the state - measures that have spiraled steady growth
witnessed in both industrial and economic areas.
Right from the year of inception, in 1970, KPCL set its sights on “growth from within”
meeting growing industry needs and reaching out to touch the lives of the common man, in more
ways than one.
KPCL today has an installed capacity of 5509.82 MW of hydel, thermal and wind energy, with
4000 MW in the pipeline. The 1470 MW Raichur Thermal Power Station located in Raichur dist
is accredited with ISO 14001-2004 certification for its environment protection measures. From
an industry vantage point, KPCL has raised the bar on the quality of deliverables and is
constantly working at lowering the cost per megawatt - a commendable cost-value equation that
has become a benchmark on the national grid. KPCL’s stock in trade is industry proven - well-

established infrastructure & modern, progressive management concepts and a commitment to

excel, helping it meet the challenges of the rising energy demands of Karnataka.
The leverage point of KPCL initiatives are its resource management strengths – right
across planning, financing and project engineering. KPCL also has a high rating in terms of
project completion and commissioning within the implementation calendar.
KPCL Mission & Objectives
KPCL seeks to touch higher vantage points in the world of power engineering. Our
formula for achieving this - start with a world class organization, build-in efficiency and cost
control and ensure that progress is in harmony with the environment.
• Exploring, identifying and developing opportunities in power generation.

• Devising innovative ways of setting up and operating power plants.
• Investing in a resource base of technical competence, systems, processes and capability.
• Empowering people, work teams and the support network to achieve these objectives.
KPCL Vision
“Ensuring energy security for Karnataka through diversified energy portfolio”.

KPCL's record achievements:
• Highest generation of 26635 million units (2006-2007).

• Highest thermal generation of 11484 Million Units 2006-07.
• Highest Plant Load Factor (PLF) of 90.39 % at Raichur Thermal Power Station (2002-
2003).
• Highest capacity addition of 600 MW, in 1999.
• Highest Annual Turnover of Rs.3387 Crores (2006-2007). Commissioning of Unit - 7 at
RTPS in 25 Months - A National record

ACHIEVEMENTS OF RTPS

2003-04 – GOLD
Karnataka SHIELD
Power & CERTIFICATE
Corporation Limited FOR OUTSTANDING
PERFORMANCE - 88.23% PLF
2002-03 – GOLD SHIELD & CERTIFICATE FOR OUTSTANDING

PERFORMANCE -90.39% PLF
2000-01 and 2001-02 - CERTIFICATE & SILVER SHIELD FOR GOOD

PERFORMANCE.
2000,2002 - CERTIFICATE FOR REDUCTION IN AUXILIARY COMSUMPTION.
2001,2002,2003 - CERTIFICATE FOR REDUCTION IN SECONDARY FUEL OIL.
1999-2000 Rs 22.82 LAKHS FOR REDUCTION IN SECONDARY

FUEL,OIL,AUXILLARY CONSUMPTION & HIGH PLF OF 81.52%
1998-99 Rs 6.65 LAKHS FOR CASH AWARD & BRONZE MEDAL FOR
ACHIEVING HIGH PLF OF 81.65%
1998 - Rs 9.94 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

AUXILLARY CONSUMPTION.
1997-98 Rs 9.22 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

1996-97 Rs 16.75 LAKHS CASH AWARD AND SHIELD FOR ACHIEVING HIGH
PLF OF 70 % &REDUCTION IN SECONDARY FUEL OIL CONSUMPTION.

AUXILLARY CONSUMPTION
1994 - Rs 6.10 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL

CONSUMPTION.


1991 - Rs 9.26 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL

CONSUMPTION.
1990 - Rs 14.48 LAKHS CHSH AWARD & A GOLD MEDAL FOR ACHIEVING
HIGH PLF OF 78.59%
1989 – Rs 10.00 LAKHS FOR ACHIEVING HIGH PLF OF 72.99%.

1988 – Rs 8.00 LAKHS FOR ACHIEVING HIGH PLF OF 66.3%.
For Renewable Energy

Social Responsibility
• The corporation made a total contribution of Rs. 1.5 Crs to chief Minister’s Relies fund
during the year 2004-2005.
• Enhancement of knowledge and skill of employees through training.
• Voluntary implementation of best practices having regard to the regulatory tariff regime.
• High priority in compliance to environment laws, regulation and norms.
Passing on the benefit of cost cutting in construction, finance and operations to the customers.

INDUSTRY PROFILE
The power sector has registered significant progress since process of planned
development of the economy began in 1950. Hydro-power and cost based thermal power has
been the main sources of generating electricity. Nuclear power development is at slower pace,
which was introduced, in late sixties. The concept of operating power systems on a regional basis
crossing the political boundaries of state was introduced in the early sixties. In spite of the
overall development that has taken place, the power supply industry has been under constant
pressure to bridge the gap between supply and demand.
HISTORY
Although electricity had been known to be produced as a result of the chemical reactions
that take place in an electrolytic cell since Alessandro Volta developed the voltaic pile in 1800,
its production by this means was, and still is, expensive. In 1831, Michael Faraday devised a
machine that generated electricity from rotary motion, but it took almost 50 years for the
technology to reach a commercially viable stage. In 1878, in the US, Thomas Edison developed
and sold a commercially viable replacement for gas lighting and heating using locally generated
and distributed direct current electricity.
The world's first public electricity supply was provided in late 1881, when the streets of
the Surrey town of Godalming in the UK were lit with electric light. This system was powered
from a water wheel on the River Way, which drove a Siemens alternatr that supplied a number of
arc lamps within the town. This supply scheme also provided electricity to a number of shops
and premises.

Coinciding with this, in early 1882, Edison opened the world’s first steam-powered
electricity generating station at Holborn Viaduct in London, where he had entered into an
agreement with the City Corporation for a period of three months to provide street lighting. In
time he had supplied a number of local consumers with electric light. The method of supply was
direct current (DC).
It was later on in the year in September 1882 that Edison opened the Pearl Street Power
Station in New York City and again it was a DC supply. It was for this reason that the generation
was close to or on the consumer's premises as Edison had no means of voltage conversion. The
voltage chosen for any electrical system is a compromise. Increasing the voltage reduces the
current and therefore reduces resistive losses in the cable. Unfortunately it increases the danger
from direct contact and also increases the required insulation thickness. Furthermore some load
types were difficult or impossible to make for higher voltages.
Additionally, Robert Hammond, in December 1881, demonstrated the new electric light
in the Sussex town of Brighton in the UK for a trial period. The ensuing success of this
installation enabled Hammond to put this venture on both a commercial and legal footing, as a
number of shop owners wanted to use the new electric light. Thus the Hammond Electricity
Supply Co. was launched. Whilst the Godalming and Holborn Viaduct Schemes closed after a
few years the Brighton Scheme continued on, and supply was in 1887 made available for 24
hours per day.
Nikola Tesla, who had worked for Edison for a short time and appreciated the electrical
theory in a way that Edison did not, devised an alternative system using alternating current. Tesla
realised that while doubling the voltage would halve the current and reduce losses by three-
quarters, only an alternating current system allowed the transformation between voltage levels in
different parts of the system. This allowed efficient high voltages for distribution where their
risks could easily be mitigated by good design while still allowing fairly safe voltages to be
supplied to the loads. He went on to develop the overall theory of his system, devising theoretical
and practical alternatives for all of the direct current appliances then in use, and patented his
novel ideas in 1887, in thirty separate patents.

In 1888, Tesla's work came to the attention of George Westinghouse, who owned a patent
for a type of transformer that could deal with high power and was easy to make. Westinghouse
had been operating an alternating current lighting plant in Grea Barrington, Massachusetts since
1886. While Westinghouse's system could use Edison's lights and had heaters, it did not have a
motor. With Tesla and his patents, Westinghouse built a power system for a gold mine in
Telluride, Colorado in 1891, with a water driven 100 horsepower (75 kW) generator powering a
100 horsepower (75 kW) motor over a 2.5-mile (4 km) power line. Almarian Decker finally
invented the whole system of three-phase power generating in Redlands, California in 1893.
Then, in a deal with General Electric, which Edison had been forced to sell, Westinghouse's
company went on to construct a power station at the Niagara Falls, with three 5,000 horsepower
(3.7 MW) Tesla generators supplying electricity to an aluminium smelter at Niagara and the
town of Buffalo 22 miles (35 km) away. The Niagara power station commenced operation on
April 20, 1895.
Tesla's alternating current system remains the primary means of delivering electrical
energy to consumers throughout the world. While high-voltage direct current (HVDC) is
increasingly being used to transmit large quantities of electricity over long distances or to
connect adjacent asynchronous power systems, the bulk of electricity generation, transmission,
distribution and retailing takes place using alternating current
Growth of Indian power sector
Power development is the key to the economic development. The power sector has
been receiving adequate priority ever since the process of planned development began in 1959.
The power sector has been getting 18-20% of the total public sector outlay in initial plan periods.
Remarkable growth and progress have led to extensive use of electricity in all the sectors of
economy in the successive five years plans. Over the years (since 1950) the installed capacity of
power plants (utilities) has increased to 109092 MW (2004-05) from 1713 MW in 1959,
registering a 63 fold increase in 54 years. Similarly, the electricity generation increased from

about 5.1 billion to 440 billion units –86 fold increases. The per capita consumption of electricity
in the county also increased from 15 KWH in 1950 to about 395 KWH in 2004-05, which is
about 26 times. In the field of rural electrification and pump set energization, country has made a
tremendous progress, 88% of the village have been electrified except far flung areas in North
Easter states, where it is difficult to extend the grid supply.
Generation mix
The share if hydel generation in the total generating capacity of the country has
declined from 34% at the end of the sixth plan to 29% at the end of the seventh plan and further
to 25.5 percent at the end of eighth plan. The share is likely to decline ever further unless suitable
corrective measures are initiated immediately. Hydel power projects, with storage facilities,
provide peak time support to the power system. Inadequate hydel support in some of the regions
is adversely affecting the performance of the thermal power plants. In western and Eastern
regions, peaking power provided by thermal plants, some of which have to back down during off
peak hours.
Emergence regional power systems
In order to optimally utilise the dispersed sources for power generation it was
decided right at the beginning of the 1960’s that the country would be divided into 5 regions and
the planning process would aim at achieving regional self sufficiency. The planning was so far
based on a region as a unit for planning and accordingly the power systems have been developed
and operated on regional basis, strong integrated grids exist in all the five regions of the country
and the energy resources developed are widely utilised within the regional grids. Presently, the
Eastern and North-Eastern regions are operating in parallel. With the proposed inter-regional
links being developed it is estimated that it would be possible for power to flow any where in the
country with the concept of National Grid becoming a reality during 12th plan period.

Private Sectors
The initial response of the domestic and foreign investors to the policy of private
participation in power sector has been extremely encouraging. However, many projects have
encountered unforeseen delays. There have been delays relating to finalisation of power purchase
agreements, guarantees and counter guarantees, Environmental clearances, matching
transmission networks and legally enforceable contracts for fuel supplies. The shortfall in the
private sector was due to the emergence of a number of constraints, which were not anticipated
at the time the policy was formulated. The most important is that leaders are not willing to
finance large independent power projects, selling power to a monopoly buyer such as SEB’s do
not pay for electricity. Uncertainties about fuel supply arrangements and the difficulty in
negotiating arrangements with public sector fuel suppliers, which concern penalties for non-
performance, is another area of potential difficulty. This important to resolve these difficulties
and revolve a framework of policy which can ensure a reasonable distribution of risks which
make power sector projects financially attractive. The capacity addition programmed for the 9th
plan envisaged around 17588MW to be added by private generating companies. In order to
achieve the targeted private sector capacity addition during the 9th plan, the following additional
facilitating measures have recently been suggested by the promoters. Most of these have been
accepted while some of them are under the consideration of the government.
Objectives of the power sector
 To provide reliable and quality power at a economic price.
 To make the sector commercially sound and self-sustaining.
 To achieve environmentally sustainable power development.
 High performance levels to reduce cost and ensure reliable power supply.

PRODUCT/SERVICE PROFILE:
The study is conducted in “Karnataka Power Corporation limited”, which has generating
the power as its product. The firm is providing the service of power with out which lightening is
not possible. Now a day’s power is very essential in all the activity of life of human beings.
KPCL is a monopoly producer of power in Karnataka state. The corporation is generating

the power by Hydro, wind and coal. It is really very expensive to generate power. Because it
needs constructed dam for Hydal power generation, generators, plants, which incur huge
investment, it also costly in the case of wind and coal. At present KPCL producing at 70%
through hydro, 20% by coal and 10% by wind.
The power generated by KPCL is sold KPTCL (Karnataka Power Transmission

Corporation Limited). As per data collected the corporations is generating power capacity is
19713 million units. The generated power can not be saved and sold some days later, it should be
sold out while generating. Power is sold with the help of the gridlines, transforms and other
power supply tools.
At present KPCL is using modern techniques of power generation. In addition to this the
corporation is training their employees regarding the power generation techniques. The KPCL
has more than 20 projects.

HYDRO ELECTRIC POWER GENERATION
This is one of the cheapest ways to electricity, the kinetic and potential energy of running
water being harnessed to drive generators. However, it is limited to mountainous region where
fast rivers flow. A fairly large difference in height is required to produce enough force in he
flowing water to turn the water wheels to which the generators are connected.
Early installation had vertical water turning the machinery. Modern plants use vertical
generators mounted on horizontal water wheels. These generators of the synchronous salient
pose type are of very large diameter (30 to 40) feet and have a large number of poles (up to 60)
depending on the speed of rotation (usually from 100 to 600rpm). The required head of water
obtained by constructing a dam across the river, usually at its steepest point to make maximum
use of height. A reservoir forms behind the dam, so that a constant head of water is obtained.
This water form the reservoir is carried through underground ducts and they directed against the
generators are usually mounted in the range 6.6 to 15 KV. The exciter set on top of the main
generator provides the low voltage, high current D.C required to set up the magnitude field in the
min generator. Transformers situated just outside the powerhouse raise the voltage to the long
distance transmission level of 275 to 400KV.
These plants are cheap to run, for this only a small staffs is required. However, the initial
capital is enormous since dam construction is a major civil engineering feat. Suitable sites for

hydro electricity transmission lines must be added. However, these stations have a long life up to
5 years.
THERMAL POWER STATION
Thermal power stations were the best energy, which is converted in to electric energy and
provide the majority power generation at present. The main is advantage is that they can be sited
where needed thus saving on the cost of the transmission lines. However, high cost of fuel (coal,
oil or gas) is incurred.
In operation, fuel is burnt to heat the water in the boiler, which then produces steam at
very high pressure (up to 5000 Ib/sqare Inc) and temperature (1100 f). This steam is directed on
to blades of high-speed turban, which is connected to the generator. The steam is condensed then
the water is return to the boiler, thus forming a closed cycle. This condensed is required large
cooling tower of external water (15 million gales/hour for a 300 MW station) or large cooling
tower. These sites must be chosen near the river or where the unsightly cooling tower will not
detract from the surrounding. The generation are of 2 cycles pole construction rotating at 3000
rph again the voltage output varies between 6.6 to 33KV, the machine rating the higher the
voltage used. The excited set is again amounted on the shaft. Large amounts of heat are produced

is important fans mounted each end of he rotor circulate air or hydrogen gas. Hydrogen is better
cooling medium then air and also only and fourteenth is its densities. Thus less power is required
to circulate. Recently liquid cooling is using oil or water as being adopted. Liquid are far
superior to gases for cooling, water being 50 times better then the air. Thermal stations are not
particularly efficient, the overall figure about 38% of the thermal power being put into plant from
the fuel is available as electric energy. The main limitation is the boiler design, the generators
being up to 90% efficient.
WIND POWER STATION
It is also one type of power generation where KPCL produce power by using the wind.
This form of power generation contributes only 1% of total power generation.
Ex:- Kappatagudda wind farm

DIESEL POWER STATION
A diesel generator is the combination of a diesel engine with an electrical generator

(often called an alternator) to generate electric energy. Diesel generating sets are used in places
without connection to the power grid or as emergency power-supply if the grid fails.
KPCL has 6 units and 21.32 capacity in MW, total installed capacity is 127.92. this type
of power generation is very costly, it costs nearly Rs.10 per unit and used only for emergency
purpose. KPCL’s Diesel power station is situated in Yelahanka.
Ex:- Yelahanka Diesel Generating station

ORGANIZATIONAL STRUCTURE
Grouping of activities is an essential step in designing an organizational structure.

Grouping of activities into departments or other homogeneous units is known as
departmentation. Departmentation is the process of grouping tasks into job’s the combining of
jobs into effective work groups into identifiable segment or departments.
In Prateeks activities are grouped into different functional units. Each major function
of the enterprise is grouped into different department. This can also be studied as a separate
function. Departmentation based on functions is a simple form of organizing the activities.
Specialization of department promotes the excellence in performance. It lead to improve
planning and control of key functions and ensure economy.

ORGANISATION CHART
Board of Directors
Managing Director
Technical Director Finance Director H R Director
Executive
Chief Engineer
Superintend
Assistant Accounts
General
DGM
Asst GM
Asst Accounts
General
DGM
Asst GM
Asst Personal
DGM ManagerPersonal
General
AGM
Junior (HR)
DGM
AGM
Junior
Engineer
Director
Engineer Officer
Manager
(A/C’s)
(Accounts)
Accounts Officer
Manager
(Finance)
(Accounts)
Accounts Officer
(HRD-1)
(HRD)
Personnel Officer
(HRD-2)
(HRD)
Personnel
(accounts)
Officer (Finance)
Officer workers
Officer corporate
Officer
Junior Engineer Senior Senior Asst Senior Asst Senior Asst

Asst Administrator Administrator
Board consists of:
• Chairman is chief minister of the state
• Managing Director
• Technical Director
• Financial Director
• Human Resource Director

• Principal secretary
• Principal secretary to chief minister
Board of Directors:
The corporation has at its apex board of directors duly constituted under the 11th
provision of Articles of association of the corporation and the Companies Act of 1956. Board of
Director’s will be appointed by the government on such remuneration, as it may fit and shall be
entitled to remove the directors from office at any time. But subject to provision of section 252
of the Act. The number of directors of the company shall not be less than 3 and not more than 17.
The govt may free from time to time appoint one or more of the directors as Chairmen,
Vice Chairmen or Managing Director of the corporation. Usually Chairmen will be Chief
Minister or the Minister of Power & Energy or Member of Parliament or state Legislature.
Shri.Veerendra Patil was the first chairmen of the corporation and at present
Shri.B.S.Yeddyurappa Chief Minister is the Chairmen of KPCL.
Managing Director
Managing director of the corporation is the chief executive having substantial powers of
management delegated to him by the board. He will be the supreme authority of the corporation.
Under him there will be three types of directors namely Finance director, Technical director, HR
director. Shri.R.Nayak was the first MD and Shri.Dr. S.M.Jaamdar an IAS officer is the
present MD of the corporation.
Board of Directors
As on 20-10-2008

Shri B.S. Yeddyurappa Shri K.S. Eshwarappa

Hon’ble CM of Karnataka Hon’ble Minister of Energy,
& Chairman, KPCL GOK & Vice Chairman KPCL
Dr. S.M.Jaamdar, IAS,

Managing Director.
Murlidhar Rao D.C.Sreedhar, IRS K.Jairaj, IAS M.R.Kamble,

IAS

Technical Director. Finance Director. Principal Secretary, Secretary,
Energy Department, Water ResourcesDept.
Powers of the Board
• To authorize the corporation for undertaking of work of a capital nature.
• To pay and change to the capital amount of the company and any interest law full
payable.
• To act on behalf of the company in all matters relating to bankrupts and insolvents.
• To open any account or accounts with such banks as the board of directors may select or
appoint.
• To appoint or remove or suspend such managers, secretaries, supervisors, clerks, agents

and servants or permanent or temporary as they fit.
• To establish any board or agency for managing any of the affairs of the company in any
locality in India or elsewhere.
• To appoint any person to be the attorney’s of the company.
• No member shall be entitled to visit or inspect works of the company without permission
of directors in the nature of trade secrets, trade mystery and secret process.
Introduction
The functional areas of Karnataka power Corporation Ltd are divided into categories.
They are Production department, Human Resource department, Finance department ,Marketing
department, Environment department and, Computer department Finance is the main source of
every business. Finance department of Karnataka Power Corporation ltd involves managerial

activities concerned with procurement at low cost and utilization of funds for business purposes
the financial manager deals with planning, organizing, directing and controlling financial
activities of the enterprise Production is also an important work in every manufacturing unit.
Karnataka Power Corporation ltd have latest technological machineries so that the production
process can be done easily. The HRD department of the company is well structured and
employees are getting good benefits and this is one strategy of the company to increase the
productivity. Lastly, Marketing department of the company is helping the organization in
increasing the dealers and customers through their marketing strategies and campaigns and
promotional activities. This is all about functional departments. Let us know each department in
depth.
 To know the all the Departments detailed information.
 To carry out the easy work.
 To know how the company process is taken place.
 To forecast the future needs of the each Department.
 To provide timely services to each department.
FINANCE DEPARTMENT
FINANCE CHART

Managing Director
Finance Director
General Manager General Manager

(accounts) (Finance)
DGM (A/C’s) DGM (Finance)
Asst GM Asst GM
(Accounts) (Accounts)
Accounts Officer Accounts Officer
Asst Accounts Asst Accounts

Officer Officer
Senior Asst Senior Asst
Finance department is very essential for any organisation to be set up. It is the backbone
of any organisation. Similarly the finance department plays a vital role in the set up and running
of KPCL.

Chief accountant manager and chief finance manager works under the direct control of
finance Director at KPCL. Other top executive in the finance department are executive
(Finance), divisional officer (Finance), accounts officer, assistant officer, senior assistant
(Accounts) and assistant (Accounts).
The chief finance manager and accounts manager handle various activities in the finance
department. Each of them has their tasks cut out systematically in these areas.
In KPCL, finance and accounting department is subdivided into 11 sub departments.
• Salary department
• Cash department
• Bills department
• Budget and costing department
• Consultancy department
• Provident fund department
• Monthly and annual accounts department
• Debt servicing department
• On going project department
• Taxation department
• Pension department
Its brief explanation as follows:

Salary Department
In KPCL salary department looks after the advances to employee’s salary payable to the
employees.
Salary department calculates the salary of employees, on the basis of information given
by the Human Resource department regarding the employee’s attendance, leave, leave not
sanctioned, under salary amount deduction made in respect of provident fund, tax, and
remittance charges, recoveries for advance. Salary department credit net salary amount and
reimbursement of Medical and Electricity charges amount to employee’s bank account by
issuing cheques.
Cash department
The cash section is responsible for all receipts and payments of cash, cheques, etc., and
accounting the same in the books of accounts. KPCL provided 150 corers as working capital to
cash department, to carryout its transactions. If need arises beyond 150 corers, it requires to get
permission from senior executive of finance.
The functions of Cash department are:-
• Operation of Bank accounts.
• Withdrawal of cash from bank, to cater for daily needs.
• Payment of voucher by cheques / cash
• Cash disbursement to salary department for payment of salaries, wages and other
payments.
• Writing of cash / bank books.
• Preparation of Bank reconciliation statement.
• Safe custody of cash, cheque book, revenue stamp & other documents like bank
guarantees, fixed deposit receipts and investment etc.
• Reconciliation of inter transfer of funds transaction.

Bills department
Bills department concerned with the verification of bills relating to expenses after
verification, the bills will be sent to cash section for payment.
Bills department ensure that the bills amount are not exceeds the budgeted amount. If bills
amount exceeds the budgeted amount, the bill department is not having power to process the bill,
in that case managing director has power to process the bill.
In the department bills are divided in to two types.
1. Major bills.
2. Minor bills.
Major Bills
Major bills stands for amount payable for suppliers to supply goods to the power
generating units according to the predetermined agreements. Agreement is made on Rs. 100/-
stamp papers. In case of delay in supply of goods, penalty of 10% on the purchase work is
demanded. 80% of the payment will be made during the agreement, if the goods are being
transported by railways. In case, goods are transported roadways, payment will be made only on
receiving the goods, at the site, the quality and quantity of goods are verified and inspection
report will be sent to the bills section. In bills section the terms and conditions based on the
agreement are verified and if they are found to coincide with inspection report, then the bills will
sent to cash section for payment. If C-form is producing or submitted the right of royalty and
exercise duty would be 4%, otherwise 12%. C-form is issued only after receiving the goods.

Minor Bills
The minor bills include:-
• Payment of interest of loan, debenture, repayment of loan amount and debenture.
• Payment of rent, telephone bill, office expenses printing and stationary, computer
maintenance expenses.
• Payment of director’s fee and remuneration.
• Reconciliation of balance of head offices with Banks.
Budget department
Budgeting is nothing but the blue print of the future needs of the company. Budget refers
to forecast of future need. KPCL involves two types of Budget.
BUDGETING
REVENUE BUDGET CASH BUDGET

Revenue Budget
The revenue budget mainly focuses on the sales revenue and the associated costs to
generate the power. The power generation is budgeted on the basis of average of last ten years
sales and expenses on the basis of previous year actual and estimation received from different
departments.
• Establishment and general expenses.
• Operation and maintenance.
• Fuel and chemicals.
• Royalty paid for water use.
• Financial charges the outstanding loans.
• Depreciation.
Cash budget
It is helpful in estimating each requirement, planning short term financing and scheduling
payments in connection with capital expenditure project, planning purchase of materials.
Consultancy Department
KPCL today has the capability to undertake large scale power projects from concept to
commissioning. It can also operate the plant on an EPC basis, with a host of exclusive auxiliary
services.
KPCLs Consultancy and Engineering Services Division, an offshoot of its core competency,
offers its clients a wide spectrum of consultancy inputs across the complete cycle of power
project development. It has the expertise in analysis and design of structures using STADPRO –
2006, NISA – Finite Element package, AUTOCAD – 2006, micro station and in house
developed software packages for reservoir operation, Stability of Dams etc.

These include
• Feasibility studies / evaluation and the compilation of detailed project reports

• Design, Engineering, procurement and construction services
• Consultancy on both Thermal and Hydel Power Stations, including handling of
international competitive bids
• Project Management from project scheduling to preparation of final invoice and
certification.
• Supervision of erection, commissioning and operation of civil, electrical,
mechanical systems and equipment.
• Operation and maintenance services,
• Rehabilitation of dams in distress
• Renovation, modernization and updating of hydro stations
• Overall project and performance management.
Provident Fund department
Karnataka power corporation Ltd employee’s contributory provident rules. These rules
shall come in to force from 20th July 1970. The fund shall be deemed to have been
established on and from 20th July 1970. The regional provident fund commissioner decision
is final regarding interpretation of any rule and it must be carried out by both the trustees and
the member of the fund.
Pension department
The employee pension scheme 1995 (statutory). The central Govt established “THE
EMPOLYEES PENSION SCHEME 1995” through the employee’s provident fund and
miscellaneous provision Act 1952. This scheme shall come into force on 16 th day of
November 1995.

Internal Audit Department
Internal Audit in KPCL a statutory requirement as per GOI order of 1975 was established
in KPCL in 1977 was earlier under the charge of financial adviser for a quite long, but now
not exist separate wing since 1986 is headed by chief manager (internal audit) and report to
M.D KPCL has 5 audit units.
Insurance department
Insurance is a service of an undertaking taken in order to over come or setoff the losses or
damages while operating the business. In order to cover the risk and maintenance KPCL has
taken out insurance policy with many companies. The risky projects among all power
generating project are RTPS in order to cover all those risks while operating all those
insurance policies covered under RTPS can be classified:
1. Maintenance
• Standard fire and special perils.
• Boiler explosion policy.
• Terrorism.
2. Construction.

HUMAN RESOURCE DEPARTMENT
CHART OF HRD
Managing Director
H R Director
General Manager HR
DGM (HRD-1) DGM (HRD-1)

Workers Workers
AGM (HRD) AGM (HRD)
Personnel Officer Personnel Officer
Junior Personnel Junior Personnel

Officer/ Office Officer/ Office
Manager Manager
Senior Asst Senior Asst

Administrator Administrator

KPCL believes that its true investment lies in its workforce, and their happiness lies in
the future of KPCL, it therefore strives to make every effort to promote a work culture that
enable an employee to give his very best.
Employee participation in decision making negotiations has enabled the employee to

develop a sense of belongingness and in turn contributes to the progress of the organisation. A
high professional approach to recruitment, induction, on the job training appraisals and proper
channels of promotion help KPCL get personnel of the finest quality.
Human resource department concerned with managing/developing people. As the

organisation is made up of people, they should be managed/developed to attain higher level of
performance this can be done by developing their skills and motivating them. This helps the
organisation to achieve its objective.
KPCL has a dedicated of 2287 professionals, which share the vision of the KPCL
technocrats, administrators and supporting staff of KPCL joining hands to give more power to
Karnataka.

STAFF OF KPCL
Particular % of manpower No. of manpower
Corporate: 37.64% 2287
Workmen: 62.36% 3788
Total: 100% 6075
HRD MISSION
A congenial work environment supportive of high performance leading to attainment of

HRD in KPCL.
Maintaining optimum staff level nurturing and developing talents, trust, empowerment,
concern for people and reward and key elements of congenial work environment which is
dynamic.
KPCL’s strength is its people. In its journey to achieve excellence, KPCL is focusing on
every aspect and area of work with the trust area being the development of its human resource.
Functions of the Human Resource Department:
RECRUITMENT:

It is the process of finding and attracting capable applicants for employment. It is the
process of searching for and obtaining applicants for jobs, from among whom the right people
can be selected.
Online Recruitment:
• 200 Engineers recruited in 2005
• Website notification.
• About 4500 applications received online.
• Written test through IIsc.
• Interview/selection finalized in about 3 months.
TRAINING
Every year the corporation the training program for the benefit of the employees and the
company. During the year 2008-09 in house and external training 92 programs were conducted
totally 1151 employees consisting of 1031 corporate and 120 non-corporate cards benefited from
the training was Rs.41.07 lakhs.
IN-HOUSE TRAINING PROGRAMMES
• Corporate excellence through co-operation and collaboration.
• Company a/c’s and accounting standards.
• Performance management.
• Managing conflict for organisation excellence.
• Total quality management.
• Motivating and goal setting.
• BPR and bench marking.

• Attitudinal shift through self development.
EXTERNAL TRAINING PROGRAMMES
• National seminars on utilization of fly ash.
• Earthquake resistance design of dams.
• Renewable energy source and energy audit.
• National seminar views of the future civil engineering in 21st century.
• Role of energy efficiency in the Indian energy sector.
• Seminar on instrumentation engineering practice, team and research.
• Conference on the condition monitoring of plant and equipment.
• International conference on civil engineering.
PERFORMANCE APPRAISAL
To ensure greater objectivity in appraising the performance of employees and also taking
in to account the present day practices in professionally managed organisation, KPCL decided to
introduce a new system called performance appraisal and development system in the corporation.
The PADS will apply to all the employees in the corporation cards.
In KPCL once in year the performance appraisal will be sent to the entire department in
order to know the appraisal of employees. It will be measured by immediate supervision,
reviewing authority and accepting authority.
TRANSFER

Transfer of an employee from one place of work to another place of work or one job to
another job is ordered primarily in the interest of the service of the corporation. Request of an
employee for transfer is given consideration and acted upon if it is in consonance with the
interest of the service of the corporation. Transfer also aims at rotation of employees among
relate jobs of the discipline to which the employee belongs, thereby enabling the employee to
acquire wider knowledge and experience in the discipline. Transfer and non-transfer, however is
not a matter of right for any employee.
KPCL has right to transfer any employee from one place to another place with in the country.
Transfer may arise due to:
• Administrative grounds
• suitability
• Higher studies
• Medical grounds
• Joining spouse
RETIREMENT
The corporation has multiple schemes of retirement benefits of its employees, majority of
employees retiring under the pension and allied schemes, few employees retiring under
contributory provident fund schemes prevailing them, a scheme exempted.

WELFARE ACTIVITIES
The HR Department is in charge of all the welfare activities in the organisation. The
welfare activities under taken by KPCL are:-
• School recreation, club.
• House journal.
• Libraries and reading rooms.
• Sports and games.
• Consumer co-operative society.
• Literacy programmes.
• Canteen.
• Medical facilities.
• Cultural activity.
LOANS
House building / purchase / repairs improvement and extension advance may be granted
to the employees of KPCL for his bonafide, residential purpose only.
• Vehicle advance to the employers and employees.
• Festival advance to the employees of the corporation.
• Loan assistance for the personal computer..

SAFETY MEASURES
Providing conveyance and other facilities to the employees involved in the accident while
on duty or service.
• Accidents resulting in minor injuries / service injuries.
• Fatal accidents while on duty.
• Death of employee while on service.
• Lost homage.
• Free conveyance.
• Retention.

PRODUCTION DEPARTMENT
For a power Generation Company a good production team is necessary. KPCL is having
a very good production department with highly skilled labour. They recruit experience
professionals. They upgrade technology on a continuous basis. KPCL gives them adequate
training in order to update them with latest techniques and with new skills. These production
teams are placed at project sites with adequate facilities. Today KPCL owns and operates 34
Dams and nearly 25 Power houses.
These are four type of power generation by KPCL and they are:-
1. THERMAL: In this type of power generation KPCL produces the power by using coal
and fuel as raw material. At present RTPS’s (Raichur Thermal Power Station) 8th unit,
BTPS (Bellary Thermal Power Station) thermal plants are under construction. KPCL has
many track records in Thermal power production. In these case KPCL is well known in
Asia and world this form power generation contributes 31% of total power generation.
Ex: RTPS which have 7 units.
2. HYDEL: In this case KPCL produce the power by using the water as raw material it has
constructed 34 Dams for Hydel power generation. This form of power generation
contributes 68% of total power generation
Ex: sharavathi valley project, kalinadi hydro electric project
3. WIND: It is also one type of power generation where KPCL produce power by using the
wind. This form of power generation contributes only 1% of total power generation Ex:-
Kappatagudda wind farm.
4. DIESEL POWER STATION: - A diesel generator is the combination of a diesel

engine with an electrical generator (often called an alternator) to generate electric energy.
Diesel generating sets are used in places without connection to the power grid or as
emergency power-supply if the grid fails.

KPCL has 6 units and 21.32 capacities in MW, total installed capacity is 127.92. this type
of power generation is very costly, it costs nearly Rs.10 per unit and used only for emergency
purpose. KPCL’s Diesel power station is situated in Yelahanka.
Ex: - Yelahanka Diesel generating station
KPCL currently has 34 dams & 25 power stations across the State with profiles that range from
0.35 MW to 1035 MW.
The total installed capacity logged by KPCL is 55739.83 MW across a project canvas that covers
expansions, renovations and upgrading of existing plants. .

Generation performance
Generation 2008-09 2007-08 2006-07 2005-06 2004-05

Thermal 11717 10876 11484 9165 10730
Diesel + Hydro + Wind 13363 14737 15151 10724 8260
Total 25080 25613 26635 19889 18990
Thermal Details
Generation(MU) 11717 10875 11484 9165 10730
Aux.Consumption (%) 8.55 8.66 8.22 8.62 8.68
Plant Load Factor (%) 67.90 84.45 89.18 71.17 83.33
Specific Coal Consumption 0.646 0.643 0.658 0.660 0.647
(KG/KWH)
Specific Oil Consumption 1.770 0.741 0.445 0.736 0.599
(ML/KWH)
Performance of Major Hydro Stations (2008 - 2009)
Power Stations %Age Availability %Age Auxiliary

Consumption
Sharavathi 96.39 1.10
Nagjhari 85.10 2.21
Varahi 95.77 2.72
POWER HOUSES
Power Station No of Units MW Total
Thermal
Raichur 7 210 1470
Bellary 1 500 500
Diesel - Yelahanka 6 21.32 127.92
Hydel
Sharavathi

Linganamakki 2 27.5 55
Sharavathi 10 103.5 1035
Gerusoppa 4 60 240
MGHE Jog 4 21.60 139.20
4
13.20
Bhadra Right Bank 1 7.2 13.20
1
6
Bhadra Left Bank 2 12 26
1
2
Kalinadi
Supa 2 50 100
Nagjhari 2 135 870

4
150
Kadra 3 50 150
Kodasalli 3 40 120
Varahi
Varahi 2 115 230
Mani 2 4.5 9
Other
Ghataprabha 2 16 32
Almatti 1 15 290
5 55

Munirabad 2 9 28
Shivanasamudram 4 6 42
6 3
Shishma 2 8.6 17.20
Mallapur 2 4.5 9
Sirwar 1 1 1
Kalmala 1 0.40 0.40
Ganekal
Wind 1 10
Kappadagudda 9 0.225 4.55

NO PROJECT CAPACITY
11 (MW)
0.230
1 Bellary Thermal Power Station Stage – I 500
2 Bellary Thermal Power Station Stage – II 500
3 Bidadi Combined Cycle P 1400
4 Raichur Thermal Power Station Unit – 8 250
5 Varahi Hydel Projects 3 & 4 230
6 Nagjhair Power House- R & M 45
7 Gundia High Lead Scheme 400 KPCL’S ONGOING

AND NEW
8 Yermars Thermal PowerStation 2x500
PROJECT
9 Yadgir Thermal Power Station 2x500
10 Annehakanahalli Thermal Powe Station 3x500
11 Kalguriki thermal Power Station 3x500
12 Edlapur Thermal Power Station 1x500
13 BTPS unit 3 1x500

14 Kudathini Thermal Power Station 3x500
MARKETING DEPARTMENT
KPCL directly sells power to the particular customer that is KPTCL, it is a sub part of the
KPCL. KPCL generates power directly sells to the KPTCL (Karnataka Power Transmission
Corporation Ltd). Its carries out transmission of power, thus KPCL no need to carry out
marketing its power generated.

It’s producing ¾ of the demand offered by the KPCL, it fulfilling market demand by
joining hands with central government, Private organisation and other companies.
Within the KPTCL zone power is supplied to the households, commercial establishment,
industries etc, and other government under takes namely:
BESCOM- Bangalore Electricity Supply Company (HQ in Bangalore)
MESCOM- Mangalore Electricity Supply company (HQ in Mangalore)
GESCOM- Gulbarga Electricity Supply Company (HQ in Gulbarga)
HESCOM- Hubli Electricity Supply Company (HQ in hubli)
CESCOM- Chamundeshwari Electricity Supply Company (HQ in Chamundeshwari)
COMPUTER DEPARTMENT (TECHNICAL)
CHART OF TECHNICAL DEPARTMENT
Managing Director

Technical Director
Executive Director
Chief Engineer
Superintend Engineer
Executive Engineer
Assistant Engineer
Junior Engineer
In KPCL, whole organisation is computerised. It is the first state utility in the power
section to have established computerised satellite communication network, through V-SAT.
LAN is established at office in Bangalore and at all project sites. LAN is used for E-mail, file
sharing, and printing of document, internet, and application software. The computerisation

includes latest software like Auto-CAD, Oracle, developed 2000, Windows NT, Server etc. The
software developed with in KPCL deals with –Finance, Administration, Design, MIS, Public
Deposit, and Provident Fund.
MIS plays a vital role in KPCL, as information is required for any company to set up and
also to work. In 1996, KPCL started a full-fledged computer services department, there are 18
projects at Bangalore carried on by KPCL employees; so, in order to cater to all of them system
department was organised. There 13 system engineers and 8 computer engineers catering
according to KPCL. Wide Area Network (WAN) has been installed connecting 9 projects with
use of V-SAT at Bangalore. LAN is also been installed at all project locations at Bangalore.
There are around 750 computers in the organisation at Bangalore. The whole organisation is
computerised. All the projects are automated and they go online to rectify the problems in the
project. They train their staff whenever required, i.e. when the technology is being updated.
The Hi-Tech V-SAT network apply called “SHAKTHINET” was commissioned during
June 1997.

KPCL is a highly IT Savvy company among the public sector units in the state at large
and power sector in particular and has the distinction of being the first state owned company in
the power sector to have established SHAKTINET- a satellite based communication network
through V-SATs among all its power stations and Bangalore. Local Area Networks have been
established at all Project locations and about 800 officials have been wired to corporate office
with reliable VSAT back bone. All the activities of the corporation are computerized and KPCL
has the unique distinction among power utilities of establishing voice and data communication
between its projects and Bangalore through the new generation DAMA V-SATS on KPTCL’s
"VIDYUTNET". The computer services department of KPCL with fully dedicated engineers and
software professionals has developed and implemented all the software required for its business
activities and is geared to offer consultancy services in the field of software development and
networking.
Some of the software developed in-house are:

• Fuel Management system

• Human resource Information System
• Cash and Compilation Management system
• Establishment
• Integrated Inventory Management System
• Public Deposit System
• Generation Management System
• Billing software for Bellary Thermal power station
• Medicine Procurement system
New Initiatives
• Established 2 MBPS MPLS circuits between Bangalore and two of its major projects via
Raichur Thermal Power Station and Bellary Thermal power station for speedy
communication.
• Extension of the above facility to other project locations in the near future.
• Established Video Conferencing facility at Major project locations.
• Exploring possibilities of establishing SCADA facility at corporate office, Bangalore for
real time data monitoring.
• Providing reliable communication facility at major project locations through Fiber Optic Cabling
using state of the art technology.
The computer services department has set for itself very high standards and firmly believes that
"It is not the IT Infrastructure of a few crores that needs to be managed but the business that gets
transacted over the network that needs to be managed".

ENVIRONMENT DEPARTMENT
“We have not inherited the earth from our parents. We have borrowed it from out
children”. Believing in this credo and translating this belief into action, KPCL is constantly and
consciously striving to return to the environment whatever the organisation borrows from it.
While carrying out its primary task of power generation, KPCL has also adopted a definite policy
that blends and harmonizes ecological balance even as it upholds human rights.
The modern civilization is looking for sustainable development, which in real sense
means improving quality of human life, and much depends on healthy environment development
can not be achieved at the cost of environmental destruction, ecological imbalance and human
health, at any time. Sustainable development has little value with out environmental protections.
Keeping this in mind, KPCL is stringently adhering to its comprehensive environment

action plan that covers systematic strengthening of environment management, pollution
monitoring at power stations and implementation of specific environment projects.
Every time KPCL implements a power project, it undertakes a comprehensive

environmental impact study, to examine the impact of the proposed project on the environment.

KPCL also undertakes eco-friendly techniques like controlled blasting, constructing

colonies with least destruction to ecology, provision of fish ladder, installation of electro static
precipitators in thermal plants, etc. particular care is also taken to minimise pollution.
Environment Management Measure
KPCL’s power generation blueprint has a clear-cut policy on environment management.

Building in green-mapping concepts such as sustainable development, which creates the
framework for improving the quality of life. Sustainable development goes hand-in-hand with
'environment protection'
KPCL has a comprehensive action plan in place that enables environment management, pollution
monitoring and the implementation of specific environment projects.
All KPCL projects have the assurance of a comprehensive Environmental Impact Study to
evaluate the impact of the project on the environment. It also prepares an Environmental
Management Plan complying with all the conditions stipulated by KSPCB/MOEF.
KPCL's Raichur Thermal Power Station has been accredited with ISO 14001 -2004 for its efforts
towards environment protection management.
The following innovative and new measures to aid the process of environment control have been
put in place:
• A unique Ayurvedic greenhouse has been developed at Kadra Project.

• Fish fingerlings in power generation reservoirs to maintain aqua-balance.
• Eco-friendly control measures adopted such as controlled blasting.
• Construction of colonies with least destruction to ecology.
• Installation of Electro Static Precipitators in Thermal Plants.
• Measures across the board to minimize pollution.
• Fuel supply agreement with collieries to ensure high grade coal supplies.
• Monitoring measures for ash minimization, ash emission control, ash utilization and ash
disposal.
• Recycling of water from ash ponds for alternative use.

• Modernization of sewerage treatment plant.

• Continuous monitoring of air quality in work environments & environment management
measures.
Evacuation of Fly Ash from RTPS
KPCL has taken several steps to promote fly ash utilization as per MoEF notification. Fly ash is
being issued free of cost to SSI units. Leading cement manufacturers in the country have tied up
with KPCL for lifting fly ash to an extent of about 2500 metric tones per day. Besides several
small- scale industries, brick manufacturing Units & Government construction buildings are also
utilizing about 450 metric tones per day. The operation and maintenance of silos and issue of fly
ash to users from units 3,4,5,& 6 has been entrusted to M/s. ARV Cement society. In respect of
Units 1,2 & 7 M/s ACC has installed the necessary equipment for fly ash collection at their cost .
Fly ash utilization at RTPS is rapidly increasing and present utilization is 80% of the fly ash
production. Further, the users have proposed transport of ash through rail by having a dedicated
siding & this work is under progress. Total production of fly ash during 2006-07 was 17.5 lakh
MT and 12.14 lakh MT of fly ash was lifted.
KPCL has established a “Centre of Fly Ash Utilization Technology and Environment
Conservation” at Raichur Thermal Power Station in consultation with Central Power Research
Institute as consultant under Indo Norwegian Environmental Programme at a cost of Rs 58
million. Presently, in the above centre is manufacturing various Fly Ash products and are being
utilized by them for housing. This centre will demonstrate various process, technologies for the
manufacture of construction materials like brick, hollow concrete blocks, mosaic tiles etc.
Fly ash Initiatives
• MOEF/GOI has stipulated utilization of 100% Fly Ash generated at Thermal power
stations for manufacturing ash based products like Bricks, Asbestos sheets,
Embankments, Dams and Dykes. Fly Ash is issued free of cost
• The approximate quantity of Fly Ash generated at Raichur Thermal Power Station from 7
units for the year 2004-05 is 16.0 lakh MT
• RTPS has the distinction of utilizing approx. 60 to 65% of Fly Ash in a year

• Total coal consumed during 2004 – 2005 69.10 lakh tones

• Ash content - 22.02 lakh tones
• (Weighted ash content 31.73 %)
• Fly ash (80%) 16.0 lakh tones
• Bottom ash (20%) 4.40 lakh tones
Initiatives to utilize maximum Fly Ash from RTPS :
* Agreement signed with major cement manufacturers like ACC and ARV society for
production of puzzalona cement using Fly ash
* The Fly ash is being transported through specially designed closed tankers by road
* MOU between KPCL and major cement companies like ACC and ARV is under
finalization for transportation of fly ash by rail in closed railway wagons to enhance the
utilization
* Fly ash has been issued to many SSI units for manufacture of Fly ash bricks, asbestos
sheets etc.
* Established an R&D centre in 2002 with Norwegian aid for the utilization of Fly ash in
the manufacture of ash based products.
* Associated with the University of Agricultural Sciences, Raichur by extending financial
aid for carrying out R&D on utilization of Fly ash in the agricultural sector.
* Pond ash is being used for construction of roads.
* Fly ash bricks utilized for construction of houses and station building
ASH UTILISATION:
2004 – 2005 64.82 %
2003 – 2004 56.00 %
2002 – 2003 31.00 %

CORPORATE COMMUNICATION
Corporate communication is playing a vital role in KPCL. The main aim of corporate
communication is image building.
Functions of Corporate communication
• Various publications have been brought out
• Media Relations – maintaining good rapport with Print &
• Electronic Media.
• Sports meet were organized
• House magazine “Shakthi Vahini” being published regularly to maintain internal relation
and motivating the hidden talents of employees.
• Organised various meetings, functions and Seminars.
• Corporate film produced and screened.
• Corporate Image building in news-paper and magazines released on important occasions.
• Develops relevant literature and documents of the Company.
• Enhance the image of KPCL through various sponsorships and financial assistance to
temples, educational institutions and hospitals, district festivals, sports personnel and
blind Association/orphanages as Community service measures.
• Constant upgrading the image of the company and maintain cordial relations with opinion
makers and pressure group etc.

SWOT ANALYSIS
STRENGTHS:
 Availability of resources:
Generally the power generation in India is based on natural resources. Availability of

abundant coal reserves and water resource are boon to power sector.
 High potential:
Indian power sector have the vast hydro electric potential of producing 150,000 MW.
Emergence of strong and globally comparable central utilities (NTPC, Power Grid) has helped
the growth of power sector.
 Effective planning and implementation:
Indian power sector have expertise in integrated and co-ordinated (CEA and Planning
Commission). Availability of highly skilled technical personnel in large numbers has helped to
implement these plans effectively.
 Growing demand for the power;
Indian power sector has responded positively to the increasing demand for the power
throughout the country from all sectors due to industrialisation and irrigation facilities

WEAKNESS
 Inadequate infrastructure:
Inadequate infrastructure has lead to inadequate power generation and thus under
utilisation of available resource.
 Under utilisation of capacity:
Under utilisation of the existing generation capacity in present projects has decreased the
profitability.
 Interstate disputes:
Improper water management and interstate water disputes are wasting valuable water
resource there by reducing the production efficiency.
 Fluctuating monsoon:
Untimely monsoon causes water scarcity in the country affecting the generation of
power and leads to power cuts and load shedding.
 Ineffective power administration:
Ineffective power administration leading to power thefts and inefficient use of electricity
by the end consumer decreases the revenue.

OPPORTUNITIES
 Investment opportunities:
Investment opportunities for private people are increasing because of increasing demand
for the power. This contributes to growth of power sector.
 Subsidies given by government:
Subsidies are given by government for the generating companies to encourage power
generation and supply.
 Largest power markets:
Potentially, Indian power sector is one of the largest power markets in the world.
Growing demand for the power from all sectors of economy like agriculture, manufacturing,
service.
 Monopoly in power sector:
KPCL being the state monopolist in power generation holds tremendous growth
opportunities in the field of investigation, design, construction, generation and maintenance of
power projects.
 Consultancy business:
As KPCL is venturing into consultancy business which is still at growing phase, company
can look for bright future.
 Explore other source of energy:
KPCL has opportunity to explore other source of energy like wind based and solar power
projects.
 Rural electrification:

Government has shown concern rural electrification. Schemes like Bhagya jyothi scheme,
which aims to power to the poor families at cheaper rate.
THREATS
 Uncertain government policies:
Changes in political environment affect the government policies. Excess involvement of

government in decision making affects the industry.
 Bad debts:
Increasing bad debts due to non payment of electricity bills by poor people and power
thefts.
 Interstate water disputes:
The interstate water sharing disputes have halted the smooth functioning of many
projects.
 Entry of private players:
With the advent of economic reforms and liberalization, there is an open gate policies for
private participants like TATA Power, Reliance Energy, GMR, etc, in the field of power.
 Rise in prices:
Increase in political of coal due to increase in demand and transportation cost leads to
increase cost of production of Thermal power.

FINDINGS
 The organisation is reimbursing the medical bills on time.
 The organisation is providing good leave facility to its employees.
 The promotion scheme in KPCL is mostly based on seniority.
 The training given in KPCL is serving the purpose that is employees are
improving the performance on the job.
 The canteen facility provided should be improved so that the employees work
efficiency and their by to improve the productivity of the organisation.
 Since the employees felt that there is disturbance at work place due to noise
necessary steps should be taken to remove it.
 The financial performance of the company is good compare to previous financial

year
 The investors are getting good returns.
 The employees are satisfied very much with good benefits.
 The co-ordination between management and workers is good.
 More training and development is required.

SUGGESTION
 KPCL has both expertise and experience in power generation. Hence, the organisation
can focus on research and development activities leading to innovative methods of power
generation.
 Generation of more power from natural sources which again depends on research and
development.
 By generating more and more wind power, cost can be minimised.
 More awareness program and other such events at places where power project are to be
constructed. The co has scope to improve on layout facility.
 The company has to improve number of power station.
 The factory should make the arrangement of pay to the middle men at the proper time.

CONCLUSION
The organizational study helps to analyze the functioning of the overall

organization and to check out the strengths and weakness of the company. The study gives
details about the departments, its operation, coordination and functioning in detail. The company
is giving major preference to quality in its operation The company is having a very narrow
distribution channel.
It has been a long and rewarding journey for KPCL ever since its establishment in
the year 1970. Today, KPCL takes great pride in the experience it has gathered, the expertise it
has developed and the skills it has honed. Especially in planning, investigation, design, execution
and effective operation and large power projects. KPCL has completed power projects in record
time by compromising on quality of infrastructure and power generation, these by meeting the
challenges of the rising energy demands of Karnataka. An excellent HR department coupled with
innovation in technology and motivated staff further have led to the uplift the organisation.

MY LEARNING EXPERIENCE
It was great opportunity to do the In-plant training /Organization study in one of the
Manufacturing company- KARNATAKA POWER CORPORATION LTD
As part of this program, acquired good knowledge about the Karnataka Power Corporation
limited. During my study I have visited almost all the department like Research and
Development, Human resource, marketing, Finance and Agriculture, Technical technology. I
have come to know that the theoretical concept which I have studied in my MBA has been
implemented in practice in the industry. However I would see a greated mismatch from the
theory and practice.
I thank the university and the college for providing this kind of an exposure. Where I had
a chance to see what I have learnt in my theory classes.

BIBLOGRAPHY
Web sites:
www.powermin.nic.in-Official- website of Indian Ministry of power.
www.karnatakapower.com –KPCL Company website.
BOOKS REFERRED:
• Human Resource Management – By Ashwathappa.k
• Financial Management – By Prasanna Chandra.
• Magazines in KPCL.
• KPCL’s 38th Annual Report 2007-2008

Appendix
FINANCIAL PERFORMANCE
Financial result For the year ended For the year ended
March 31, 2008 March 31, 2007
(Rs. in crores) (Rs. in crores)
Gross income from Sale of 3345 3434

energy
Other income 306 316

Total Income 3651 3750
Operating expenditure 2624 2751
Operating profit 1027 999
Finance Charges, Depn,& 777 628
prior period adjustments
Profit before tax 250 371

Provision for Tax 29 77
Deferred tax 15 -28
Profit after tax 206 322

Graphical Representation of Financial Performance
Profit
 P rofit before tax during the year was at Rs.250 crores as against Rs. 371 crores during the
previous year.
Turnover
Turnover during the year was Rs.3345 crores as against Rs.3434 crores during the previous
year, on account of higher generation in thermal & hydel stations.
Generation
Generation during the year was 25613 mus as against 26635 mus during the previous year on
account of higher hydel generation.
Dividend
A dividend of Rs.22.42 per share in previous years has been proposed. The total dividend
outgo will be Rs.14.87 crores.

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Karnataka Power Corporation Limited

Objectives of the study

 To get the practical exposure in the corporate world.

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 1

History of the Karnataka power sector

The gears of enterprise in Karnataka powered nascent industrial activity as early

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 2

established infrastructure & modern, progressive management concepts and a commitment to

KPCL Mission & Objectives

• Exploring, identifying and developing opportunities in power generation.

“Ensuring energy security for Karnataka through diversified energy portfolio”.

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 3

KPCL's record achievements:

• Highest generation of 26635 million units (2006-2007).

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 4

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 5

2002-03 – GOLD SHIELD & CERTIFICATE FOR OUTSTANDING

2000-01 and 2001-02 - CERTIFICATE & SILVER SHIELD FOR GOOD

2000,2002 - CERTIFICATE FOR REDUCTION IN AUXILIARY COMSUMPTION.

2001,2002,2003 - CERTIFICATE FOR REDUCTION IN SECONDARY FUEL OIL.

1999-2000 Rs 22.82 LAKHS FOR REDUCTION IN SECONDARY

1998 - Rs 9.94 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

1997-98 Rs 9.22 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

1995 - Rs 6.10 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

1994 - Rs 6.10 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL

1993 - Rs 12.5 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

1992 - Rs 16.88 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL &

1991 - Rs 9.26 LAKHS FOR REDUCTION IN SECONDARY FUEL OIL

1989 – Rs 10.00 LAKHS FOR ACHIEVING HIGH PLF OF 72.99%.

For Renewable Energy

• Enhancement of knowledge and skill of employees through training.

• High priority in compliance to environment laws, regulation and norms.

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 7

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 8

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 9

Growth of Indian power sector

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 10

Emergence regional power systems

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 11

Objectives of the power sector

 To provide reliable and quality power at a economic price.

 To make the sector commercially sound and self-sustaining.

 To achieve environmentally sustainable power development.

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 12

KPCL is a monopoly producer of power in Karnataka state. The corporation is generating

The power generated by KPCL is sold KPTCL (Karnataka Power Transmission

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 13

HYDRO ELECTRIC POWER GENERATION

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 14

THERMAL POWER STATION

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 15

WIND POWER STATION

Ex:- Kappatagudda wind farm

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 16

DIESEL POWER STATION

A diesel generator is the combination of a diesel engine with an electrical generator

Ex:- Yelahanka Diesel Generating station

VVN.INST OF MGT ,TECH & RESEARCH B’LORE Page 17

Grouping of activities is an essential step in designing an organizational structure.