focussing to become sustainable and profitable”
Damodar Valley Corporation (DVC) is a government aided
organization which operates several power stations in the
Damodar River area of West Bengal and Jharkhand states of
India. The corporation operates both thermal power
stations and hydel power stations under the Ministry of
Power, Govt of India. Headquartered in Kolkata, West
Bengal, DVC is the first multipurpose river valley
project taken up by the Govt. of India and the only GOI
organization generating power through three sources-
coal, water and liquid fuel.
Our Corporate Editor Abul Hasan talked to P.K
Mukhopadhyay – Chairman of DVC. Following are the
Q. It's been a spectacular turnaround for Damodar Valley
Corporation (DVC) with profit of Rs 19 crore in the
fourth quarter ended March 31, 2018. Any Roadmap drawn up
to further boost up finances in the current fiscal?
A: DVC has turned black in Q4 of 2017-18 for the first
time after 15 quarters. The total annual thermal
generation in 2017-18 was 35692 Million Units which is a
y-o-ygrowth of 7.14 % compared to a national growth of
3.95 %. This generation translates into an annual Plant
Load Factor of 56.04 % which is the highest in 4 years.
We have also achieved new milestones in short term and
exchange sale which stood at 2580 MU which is a threefold
growth over 2016-17. On 24.04.2018 we touched our highest
instantaneous generation of 5763 MW and achieved the
highest single day generation of 136.44 MU. The
turnaround was possible primarily due to increase in the
operational efficiency of the units by adopting best O&M
practices, substantial exchange/short term sale, moderate
increase in demand and consistent hard work of Team DVC.
This fiscal we are focussing on a target so that our
operations become sustainable and profitable. To make it
a historic turnaround, Team DVC is all set to achieve
this goal. Our roadmap includes more efficiency in
operations, all round cost cutting, more exchange sale,
reducing our surplus power and greater efficiency in
employee engagement. The holistic approach adopted by us
are strategic in nature which I am sure will give
positive financial results.
Q. The company is looking to set up a new unit at
Durgapur in West Bengal with super-critical capacity of
around 600-800 MW. Is there a plan to start process for
setting up the project in the current financial year?
A: Durgapur TPS is one of the oldest projects in the DVC
portfolio (36 years old). Presently only one unit of
capacity 210 MW is running which we intend to phase out
due to technical issues and commercial non-viability. The
plan to install a super critical unit or ultra-super
critical unit is at its nascent stage and several rounds
of technical and commercial feasibility would have to be
carried out. However, a decision in this regard will
depend on the demand projections in the Indian power
sector and replacement plan of DVC in the future.
Q. The company hopes to achieve around Rs 2,739 crore
additional revenue over and above the Rs 15,729 crore
revenue it generated in 2017-18. Are there any expansion
plans being drawn up to achieve the new target?
A: We are not planning any new projects this fiscal. The
basis of the projections in top line growth involves
better capacity utilization, incremental sale on the
exchange &short term, acquiring new consumers for our
surplus power and recovery of outstanding dues.Our
special focus will be to increase the capacity
utilization of Raghunathpur TPS (2X600 MW) in West Bengal
for which we are scouting for consumers. Our power is
available at affordable rates and we are also one of the
oldest players in the sector. We are gradually building
internal capabilities to ensure that the growth momentum
Q. DVC has also been retiring several old capacities to
move out of high-cost power generation. Are you looking
at low-cost power generation by setting up a series of
new projects during the next five to seven years?
A: Refurbishment and retrofitting of machines is a
natural process in any organization. Our old units have
served us well and has given us profitable generation.
However, due to technical obsolescence and high cost of
generation we need to retire them in a phased manner.
Additionally, the Government has also decided to phase
out thermal units which are more than 25 years old. The
base load in the country will continue to be thermal
power which necessitates DVC to replace old units with
supercritical units which are more efficient and have low
emission rates. We have enough land and water sources to
build such units. However, the most important reason is
the highly competitive nature of the Indian Power sector.
Only those generators who can produce and sell at the
lowest cost will survive. This further adds to the
reasons for retiring old and inefficient units.
Q. DVC is now looking to sell power from its Raghunathpur
power plant to West Bengal State Electricity Distribution
Co. Ltd (WBSEDCL). Is the company planning to sell power
to many more states during the next decade?
A: The cost of generation from Raghunathpur TPS (2x600
MMW) is one of the cheapest in the country and the rate
is very attractive. Therefore, we are looking forward to
tie up with any interested state DISCOM from RTPS and
other DVC plants which have surplus power.