Summer Training

ON
“Financial Decisions, Procedure & Strategies in UPPCL”

TO BE SUBMITTED TO DR. APJ ABDUL KALAM TECHNICAL

UNIVERSITY, LUCKNOW IN THE PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Session - 2020-2021
Submitted By: Under the Guidance of:
ROHIT KUMAR GUPTA Ms. Madhu Sharma
Roll Number: 1900680700085
MBA- III Semester

MEERUT INSTITUTE OF ENGINEERING AND

TECHNOLOGY

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STUDENT DECLARATION

I Rohit Kumar Gupta student of MBA – III Semester here by declared that the
research report entitled “Financial Decisions, Procedure & Strategies in
UPPCL” is completed and submitted under the guidance of Ms. MADHU
SHARMA , MIET Meerut is my original work. The imperial finding in this
report is based on the data collected by me. I have not submitted this project report
to Dr. APJ Abdul Kalam Technical University, Lucknow or any other
University for the purpose of compliance of any requirement of any examination or
degree.

Signature

ROHIT KUMAR GUPTA

Roll Number: 1900680700085

MBA- III Semester

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3|Page
4|Page
PREFACE

In every field of education imparted to the student, working on project plays an

immense role in bringing out and exhibiting the qualities which is helpful in
implementing student‘s knowledge in the practical life.

In spite of the theoretical knowledge gained through classroom study, a person is

incomplete if not exposed to the ground realities of the business world. He may
have to face many professional hurdles after his graduation; these will be difficult
to overcome without any firsthand experience of business. In this context, 17
weeks of summer training has been designed to make the person aware of the
happenings of the real business world.

A project training is a temporary endeavor, having a defined beginning and end

(usually constrained by date, but can be by funding or deliverables), undertaken to
meet unique goals and objectives, usually to bring about beneficial change or
added value. The temporary nature of projects stands in contrast to business as
usual (or operations), which are repetitive, permanent or semi-permanent
functional work to produce products or services.

When it comes to the practical knowledge in Finance field‘, there are immense
areas to be specialized in, Specially financial decisions, procedures and the
strategies in the government company are very different from any other company.

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Getting the deep and practical knowledge of this field can be of great help to the
students who are interested in Finance. This kind of training and projects can help
the students to use their theoretical knowledge on the practical aspects of the field.

This project on “Financial Decisions, Procedure & Strategies in UPPCL.” at

UPPCL is based on understanding the financial Decisions, Procedure & Strategies
in Government Company as a whole. I have taken care to deal with the prescribed
topics in sufficient depths and in a very lucid language.

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ACKNOWLEDGEMENT

The internship opportunity I had with Uttar Pradesh Power Corporation Limited
was a great chance for learning and professional development. Therefore, I
consider myself as a very lucky individual as I was provided with an opportunity to
be a part of it. I am also grateful for having a chance to meet so many wonderful
people and professionals who led me though this internship period.

Bearing in mind previous I am using this opportunity to express my deepest

gratitude and special thanks to the Uttar Pradesh Power Corporation Limited team,
who in spite of being extraordinarily busy with her/his duties, took time out to
hear, guide and keep me on the correct path and allowing me to carry out my
project at their esteemed organization and extending during the training.

I express my deepest thanks to all for giving necessary advices and guidance and
for their careful and precious guidance which were extremely valuable for my
study both theoretically and practically.

ROHIT KUMAR GUPTA

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 INDEX

Sr. No. Topics Page No.

CHAPTER-1 EXECUTIVE SUMMARY 11

INTERSHIP CRITEORIA 12

INTRODUCTION 14

OBJECTIVE OF STUDY 17

SCOPE OF STUDY 18

RESERCH METHODOLOGY 19

SOUCRE OF DATA 21

SAMPLE SIZE 22

METHODS OF DATA COLLECTION 27

TOOLS AND TECHNIQUES OF ANALYSISE 28

CHAPTER-2 THE BACKGROUND 33

ABOUT THE COMPANY (UPPCL) 43

HISTORY/FORMATION 49

RESTRUCTURING 54

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 PVVNL 61

EUDD 2 65

COMPETITORS 68

MAJOR PROBLEMS 69

ACHIEVEMENTS 71

FUTURE PROSPECTS 73

ABOUT THE PROJECT (TOPIC) 75

CHAPTER-3

DATA ANALYSIS 97

ANALYSIS 104

FINDINGS 106

SUGGESTIONS AND RECOMMENDATION 108

CONCLUSION 110
CHAPTER -4

BIBLIOGRAPHY AND REFERENCES 112

CHAPTER -5

QUESTIONNAIRE 115

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 CHAPTER-I
 Executive Summary
 Introduction
 Objective of Study
 Scope of Study
 Research
Methodology

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 EXECUTIVE SUMMARY

I have done my summer internship at Uttar Pradesh Power Corporation

Limited (Electricity Distribution Division 2nd), Meerut U.P. The internship
was for duration of about 120 days and it involved a lot of learning all
around.

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Internship Criteria.

According to the policy of UPPCL, internship includes different phases to work upon.

Phase 1 – Under this phase, I have been told to understand the Accounting Records of
the Division like Uses of Multiple Cashbooks, Revenue Collection Process, R2, R4, and
R5 & Section Journal 1, 2, 3 & 4.

Phase 2 – This was the Specialization phase. They had provided us various learning
sessions based on the specializations we opt for like Tenders, Contractual Payments
Procedures, Opting for Demand, Cash Outlays & MTBs.

As I opted for finance, I attended the sessions such as –

 Tender Opening Process

 Contractual Payments
 Revenue target Completion

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DATA COLLECTION

1. PRIMARY DATA

Through the questionnaires one was able to identify the individual review
regarding equality, where I have prepared 7 questions both Open ended & Close
ended for fair review of people on this topic.

2. SECONDARY DATA

The secondary data as it has always been important for the completion of any
report provides a reliable, suitable, adequate and specific knowledge. Secondary
data is a data, which is collected from various sources.

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Introduction

Electric power distribution is the final stage in the delivery of electric power;
power it
carries electricity from the transmission system to individual consumers.
Distribution substations connect to the transmission system and lower the
transmission voltage to medium voltage ranging between 2 kV and 35 kV with the
use of transformers. Primary distribution lines carry this medium voltage power
to distribution transformers located near the customer's premises. Distribution
transformers again lower the voltage to the utilization voltage used by lighting,
industrial equipment and household applia
appliances.
nces. Often several customers are
supplied from one transformer through secondary distribution lines. Commercial
and residential customers are connected to the secondary distribution lines
through service drops.. Customers demanding a much larger amount of power may
be connected directly to the primary distribution level or the subtransmission level.

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General layout of electricity networks. The voltages and loadings are typical of a
European network.

The transition from transmission to distribution happens in a power substation,

which has the following functions:

 Circuit breakers and switches enable the substation to be disconnected from

the transmission grid or for distribution lines to be disconnected.

 Transformers step down transmission voltages, 35 kV or more, down to

primary distribution voltages. These are medium voltage circuits, usually 600–
35000 V.

 From the transformer, power goes to the busbar that can split the distribution
power off in multiple directions. The bus distributes power to distribution lines,
which fan out to customers.

Urban distribution is mainly underground, sometimes in common utility ducts.

Rural distribution is mostly above ground with utility poles, and suburban
distribution is a mix. Closer to the customer, a distribution transformer steps the
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primary distribution power down to a low-voltage secondary circuit, usually
120/240 V in the US for residential customers. The power comes to the customer
via a service drop and an electricity meter. The final circuit in an urban system
may be less than 15 metres (50 ft), but may be over 91 metres (300 ft) for a rural
customer.

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 OBJECTIVE OF THE STUDY

Whatever I grasped and learnt in the duration of two months has been a very
enriching experience and helped me frame my mind to understand what I wish to
acquire in life and it has certainly helped me in discovering the path to achieve it.

The major aim of the study is to examine the Financial and Accounting Procedures
and strategies adopted in Government Company in India. Other specific objectives
of the study include –

 To research the working culture of the department at Division/ Branch

in Finance/Accounts Section

 To analyze the departmental Finance/ Accounting Procedure &

Strategies.

 To research the Financial decisions of the Department.

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 SCOPE OF THE STUDY

Every research is conducted to fulfill certain objectives and this objective in

turn fulfill some purpose and is of significance for one or more than one
party. This research is significant for:

 To the student-
 This study provides the student a practical insight of various
activities and functions of the company.
 The will also be able to develop in depth knowledge of Financial
Procedures of the Electricity Distribution Company.
 The study is also required for the partial fulfillment of the
requirement for the degree of M.B.A. as per the curriculum.

 To the company -
 The study would help UPPCL to know the Employee`s & Consumers
attitude towards the company.
 To know the latest policies of the company for the Financial
procedures and strategies.

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 RESEARCH METHODOLOGY

RESEARCH DESIGN

Research design is the arrangement of condition for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with the
economy in procedure. It is the blueprints for collection, measurement and analysis
of data.

TYPE OF RESEARCH METHOD-

Four types of research methods:

 Qualitative-

 Quantitative

 Mixed (qualitative and quantitative)

 Critical and action oriented

Analytical Research & Descriptive Research

Under the analytical research, I had use facts or information already available and
analysis the facts and information to make a critical evaluation of the material.

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And in Descriptive research, it includes surveys and fact finding, enquiries of
different kinds. The major purpose of such research is description of the state of
affairs, as it exists at present. The research is designed to study the Fairness &
Equality in financial strategies in UPPCL.

The methodology followed for research is as following:

1. Survey of concerned literature

2. Collecting data

3. After the collection of data the raw data is processed through editing, loading,
classification and tabulation to make analysis of the data of information. After the
analysis the finding are drawn and recommendations/conclusion are made.

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 SOURCES OF DATA

Sample design: - A sample design is a definite plan for obtaining a sample from
a given population. It refers to the technique or the procedure the researcher would
adopt in selecting items for the sample for these investigation.

Area of operation: - For market visit - PAN India

Primary research entails the use of immediate data in determining the survival of
the market. The popular ways to collect primary data consist of surveys,
interviews and focus groups, which shows that direct relationship between
potential customers and the companies. Whereas secondary research is a means to
reprocess and reuse collected information as an indication for betterments of the
service or product. Both primary and secondary data are useful for businesses but
both may differ from each other in various aspects.

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 Sample Size and Method of Selecting Sample

Sample size: -

 For survey – 50 Consumers

20 Employees
15 Contractors
 Forecasting- previous Final year data

Sampling is a process of obtaining a number of individuals taken a base for the

entire population since entire population cannot be asked about the necessary
objective upon which a questionnaire is put forth needed for the responses to be
derived for the purpose of generation of facts and customer view point
regarding their perception of particular product or services.

There are two type of sampling-

i. Random sampling- Random sampling is a process of selecting the

sample size randomly and no choice or preference to be made about
the selection of respondents for the market survey and questionnaire
to be put forth against him. Here, Random sampling being adopted by
me.

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 ii. Systematic sampling- It is a sampling where the limited number of
selected respondents is figured out based on some criteria so that only
those respondents can be asked for the purpose of filing questionnaire.

To ensure complete representation the researcher identified target responded

through a stratified Systematic sampling process, where the limited number of
selected respondents is figured out based on the people, so that only those
respondents can be asked for the purpose of filing questionnaire.

 I have covered 20 employees.

1. Division Level employees

a) DAR
b) DAW
c) Clerks
2. SubDivision Level Employees
a) SDO
b) Babus
c) Clerks
3. Electric Station Employees
a) JE
b) Line Mans

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 I have covered 15 Contractors.
 I have Covered 50 Consumers.

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 DATA COLLECTION

Data collection is a process of collecting information from all the relevant sources
to find answers to the research problem, test the hypothesis and evaluate the
outcomes.

1. PRIMARY DATA
It can be obtained either through direct communication with respondents in one
form or another or through personal interviews. Questionnaire and interviewing are
main weapons to collect data. I preferred the survey or questionnaire method,
where I have prepared 15 questions both Open ended & Close ended for fair
review of people on this topic.

2. SECONDARY DATA

Secondary data is a data, which is collected from various sources.

Secondary data is not a fresh data so it has its own limitations like: Time
Constraints, Accuracy and Applicability. The data has been collected
from various sources.

The secondary data as it has always been important for the completion
of any report provides a reliable, suitable, adequate and specific

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knowledge. The standard cost reports, working sheets provide the
knowledge and information regarding the relevant subjects.

. This is secondary data which has been collected from various

sources. Such as:

 Newspapers.
 Websites
 Annual reports
 Advertisements etc.
 Magazines.

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 METHOD OF DATA COLLECTION.

Method of Collecting data for my Research is both, Primary data collection and
Secondary data collection.

 Primary Source includes the work done by me in the PLACEMENT. It is

the research that I carried on to understand the level of Fairness &
Equality in Financial Procedures.

 In Secondary source, there is a lot of use of internet. I have referred

various sites in order to make my project more presentable and accurate.
The websites have been included in the Bibliography section.

The data, collected from these sources, has been used in the preparation of
project report.

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TOOLS AND TECHNIQUES OF ANALYSIS

SWOT ANALYSIS

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 Strengths

Power is undoubtedly a key driver of human progress. A SWOT analysis of the

power sector’s strengths identifies features inside the industry that are a positive
sign. These features need to be representative of areas over which the industry has
a high degree of control. Some of the strengths of the power sector include:

 Rising rate of investment in renewable energy

 Established infrastructure

 Increased adoption of better and energy-efficient technology

Weakness

In SWOT analysis, weaknesses help identify features inside the industry that are
low-performing or inefficient. The swelling of the global population and increasing
rate of industrialization in developing nations have fueled humanity’s hunger for
energy to unprecedented levels. Some of the common weaknesses of companies in
the power sector include:
 Growing demand for energy

 Rising costs of electric grids

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 Employee attrition

Opportunities

Companies in the power sector can identify various goldmines for growth using the
SWOT analysis. The growing rate of data collection and exchange are opening
new doors of opportunities in the energy industry. Opportunities are present all
along the power-industry value chain, from generation to customer relationship
management. Some of the key opportunities for power sector companies include:

 Increased tax incentive for energy-efficient automobiles

 Seasonal increase in the number of days of sunlight

 Lifted bans on off-shore drilling

Threats

A SWOT analysis of the power industry’s threats shows features outside the
industry that are potentially hazardous to continued growth. They are often outside
the control of the power sector companies. Presently, due to the sector’s social and
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 economic impact, companies in the industry are under constant pressure to
improve their efficiency and attain greater cost competitiveness. The main threats
facing power sector companies include:

 Compliance and regulatory risks

 Uncertainty in climate policy and carbon pricing

 Commodity price volatility

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 CHAPTER-2
 The Background
 About the Company
(UPPCL)
 History
 Restructuring
 PVVNL
 EUDD 2 Meerut
 Competitors
 Major Problems
 Achievements
 Future Prospects

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Background of the Industry

Transmitting electricity a long distance at high voltage and then reducing it to a

lower voltage for lighting became a recognized engineering roadblock to electric
power distribution with many, not very satisfactory, solutions tested by lighting
companies. The mid-1880s saw a breakthrough with the development of functional
transformers that allowed the AC voltage to be "stepped up" to much higher
transmission voltages and then dropped down to a lower end user voltage. With
much cheaper transmission costs and the greater economies of scale of having
large generating plants supply whole cities and regions, the use of AC spread
rapidly.

In the US the competition between direct current and alternating current took a
personal turn in the late 1880s in the form of a "war of currents" when Thomas
Edison started attacking George Westinghouse and his development of the first US
AC transformer systems, pointing out all the deaths caused by high voltage AC
systems over the years and claiming any AC system was inherently
dangerous. Edison's propaganda campaign was short lived with his company
switching over to AC in 1892.

AC became the dominant form of transmission of power with innovations in

Europe and the US in electric motor designs and the development of
engineered universal systems allowing the large number of legacy systems to be
connected to large AC grids.

In the first half of the 20th century, in many places the electric power
industry was vertically integrated, meaning that one company did generation,
transmission, distribution, metering and billing. Starting in the 1970s and 1980s,

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nations began the process of deregulation and privatization,, leading to electricity
markets.. The distribution system would rem
remain
ain regulated, but generation, retail,
and sometimes transmission systems were transformed into competitive markets.

Generation and transmission

Simplified diagram of AC electricity delivery from generation stations to

consumers' service drop.

Electric power begins

gins at a generating station, where the potential difference can be
as high as 33,000 volts. AC is usually used. Users of large amounts of DC power
such as some railway electrification systems
systems, telephone exchanges and industrial
processes such as aluminium smelting use rectifiers to derive DC from the public
AC supply, or may have their own generation systems. High-voltage
voltage DC can be
advantageous for isolating alternating
alternating-current
current systems or controlling the quantity
of electricity transmitted. For example, Hydro-Québec has a direct-current
direct line
which goes from the James Bay region to Boston.[8]

From the generating station it goes to the generating station's switchyard where a
step-up
up transformer increases the voltage to a level suitable for transmission, from
44 kV too 765 kV. Once in the transmission system, electricity from each generating

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station is combined with electricity produced elsewhere. Electricity is consumed as
soon as it is produced. It is transmitted at a very high speed, close to the speed of
light.

Primary distribution

Primary distribution voltages range from 4 kV to 35 kV phase-to-phase (2.4 kV to

20 kV phase-to-neutral) Only large consumers are fed directly from distribution
voltages; most utility customers are connected to a transformer, which reduces the
distribution voltage to the low voltage "utilization voltage", "supply voltage" or
"mains voltage" used by lighting and interior wiring systems.

Network configurations

Substation near Yellowknife, in the Northwest Territories of Canada

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Distribution networks are divided into two types, radial or network. A radial
system is arranged like a tree where each customer has one source of supply. A
network system has multiple sources of supply operating in parallel. Spot networks
are used for concentrated loads. Radial systems are commonly used in rural or
suburban areas.

Radial systems usually include emergency connections where the system can be
reconfigured in case of problems, such as a fault or planned maintenance. This can
be done by opening and closing switches to isolate a certain section from the grid.

Long feeders experience voltage drop (power factor distortion)

requiring capacitors or voltage regulators to be installed.

Reconfiguration, by exchanging the functional links between the elements of the

system, represents one of the most important measures which can improve the
operational performance of a distribution system. The problem of optimization
through the reconfiguration of a power distribution system, in terms of its
definition, is a historical single objective problem with constraints. Since 1975,
when Merlin and Back introduced the idea of distribution system reconfiguration
for active power loss reduction, until nowadays, a lot of researchers have proposed
diverse methods and algorithms to solve the reconfiguration problem as a single
objective problem. Some authors have proposed Pareto optimality based
approaches (including active power losses and reliability indices as objectives). For
this purpose, different artificial intelligence based methods have been used:
microgenetic, branch exchange, particle swarm optimization and non-dominated
sorting genetic algorithm.

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Rural services

Rural electrification systems tend to use higher distribution voltages because of the
longer distances covered by distribution lines (see Rural Electrification
Administration). 7.2, 12.47, 25, and 34.5 kV distribution is common in the United
States; 11 kV and 33 kV are common in the UK, Australia and New Zealand;
11 kV and 22 kV are common in South Africa; 10, 20 and 35 kV are common in
China. Other voltages are occasionally used.

Rural services normally try to minimize the number of poles and wires. It uses
higher voltages (than urban distribution), which in turn permits use of galvanized
steel wire. The strong steel wire allows for less expensive wide pole spacing. In
rural areas a pole-mount transformer may serve only one customer. In New
Zealand, Australia, Saskatchewan, Canada, and South Africa, Single-wire earth
return systems (SWER) are used to electrify remote rural areas.

Three phase service provides power for large agricultural facilities, petroleum
pumping facilities, water plants, or other customers that have large loads (Three
phase equipment). In North America, overhead distribution systems may be three
phase, four wire, with a neutral conductor. Rural distribution system may have
long runs of one phase conductor and a neutral.[17] In other countries or in extreme
rural areas the neutral wire is connected to the ground to use that as a return
(Single-wire earth return). This is called an ungrounded wye system.

Secondary distribution

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World map of mains voltage and frequencies

Main article: Low-voltage

voltage network

Electricity is delivered at a frequency of either 50 or 60 Hz, depending on the

region. It is delivered to domestic customers as single-phase
phase electric power.
power In
some countries as in Europe a three phase supply may be made available for larger
properties. Seen with an oscilloscope
oscilloscope,, the domestic power supply in North America
would look like a sine wave
wave, oscillating between −170 volts and 170 volts, giving
an effective voltage of 120 volts RMS. Three-phase electric power is more
efficient in terms of power delivered per cable used, and is more suited to running
large electric motors. Some large European appliances may be powered by three-
three
phase power, such as electric stoves and clothes dryers.

A ground connection is normally provided for the customer's system as well as for
the equipment owned by the utility. The purpose of connecting the customer's
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system to ground is to limit the voltage that may develop if high voltage
conductors fall down onto lower-voltage conductors which are usually mounted
lower to the ground, or if a failure occurs within a distribution
transformer. Earthing systems can be TT, TN-S, TN-C-S or TN-C.

Regional variations

220–240 volt systems

Most of the world uses 50 Hz 220 or 230 V single phase, or 400 V 3 phase for
residential and light industrial services. In this system, the primary distribution
network supplies a few substations per area, and the 230 V / 400 V power from
each substation is directly distributed to end users over a region of normally less
than 1 km radius. Three live (hot) wires and the neutral are connected to the
building for a three phase service. Single-phase distribution, with one live wire and
the neutral is used domestically where total loads are light. In Europe, electricity is
normally distributed for industry and domestic use by the three-phase, four wire
system. This gives a phase-to-phase voltage of 400 volts wye service and a single-
phase voltage of 230 volts between any one phase and neutral. In the UK a typical
urban or suburban low-voltage substation would normally be rated between
150 kVA and 1 MVA and supply a whole neighbourhood of a few hundred houses.
Transformers are typically sized on an average load of 1 to 2 kW per household,
and the service fuses and cable is sized to allow any one property to draw a peak
load of perhaps ten times this. For industrial customers, 3-phase 690 / 400 volt is

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also available, or may be generated locally. Large industrial customers have their
own transformer(s) with an input from 11 kV to 220 kV.

100–120 volt systems

Most of the Americas use 60 Hz AC, the 120/240 volt split-phase

split system
domestically and three phase for larger installations. North American transformers
usually power
er homes at 240 volts, similar to Europe's 230 volts. It is the split-
split
phase that allows use of 120 volts in the home.

Japan's utility frequencies are 50 Hz and 60 Hz.

In the electricity sector in Japan

Japan, the standard voltage is 100 V, with both 50 and
60 Hz AC frequencies being used. Parts of the country use 50 Hz, while other parts
use 60 Hz. This is a relic from the 1890s. Some local providers in Tokyo imported
50 Hz German equipment, while the local power providers in Osaka brought in
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60 Hz generators from the United States. The grids grew until eventually the entire
country was wired. Today the frequency is 50 Hz in Eastern Japan
(including Tokyo, Yokohama, Tohoku, and Hokkaido) and 60 Hertz in Western
Japan (including Nagoya, Osaka, Kyoto, Hiroshima, Shikoku, and Kyushu).

Most household appliances are made to work on either frequency. The problem of
incompatibility came into the public eye when the 2011 Tōhoku earthquake and
tsunami knocked out about a third of the east's capacity, and power in the west
could not be fully shared with the east, since the country does not have a common
frequency.

There are four high-voltage direct current (HVDC) converter stations that move
power across Japan's AC frequency border. Shin Shinano is a back-to-back HVDC
facility in Japan which forms one of four frequency changer stations that link
Japan's western and eastern power grids. The other three are at Higashi-
Shimizu, Minami-Fukumitsu and Sakuma Dam. Together they can move up to 1.2
GW of power east or west.

240 volt systems and 120 volt outlets

Most modern North American homes are wired to receive 240 volts from the
transformer, and through the use of split-phase electrical power, can have both 120
volt receptacles and 240 volt receptacles. The 120 volts is typically used for
lighting and most wall outlets. The 240 volt outlets are usually located to service
the oven and stovetop, water heater, and clothes dryer (if they are electric, rather

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than using natural gas). Sometimes a 240 volt outlet is mounted in the garage for
machinery or for charging an electric car.

Modern Distribution Systems

Traditionally, the distribution systems would only operate as simple distribution

lines where the electricity from the transmission networks would be shared among
the customers. Today's distribution systems are heavily integrated with renewable
energy generations at the distribution level of the power systems by the means
of distributed generation resources, such as solar energy and wind energy. As a
result, distribution systems are becoming more independent from the transmission
networks day-by-day. Balancing the supply-demand relationship at these modern
distribution networks (sometimes referred to as microgrids) is extremely
challenging, and it requires the use of various technological and operational means
to operate. Such tools include battery storage power station, data analytics,
optimization tools, etc.

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COMPANY PROFILE

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INTRODUCTION

The creation of Uttar Pradesh Power Corporation Ltd. (UPPCL) on January 14,
2000 is the result of power sector reforms and restructuring in UP (India) which is
the focal point of the Power Sector, responsible for planning and managing the
sector through its transmission, distribution and supply of electricity.

UPPCL will be professionally managed utility supplying reliable and cost efficient
electricity to every citizen of the state through highly motivated employees and
state of art technologies, providing an economic return to our owners and
maintaining leadership in the country.

TO OUR CONSUMERS:

High productivity reflected in a fair, equitable and cost based tariff across
consumer categories, accurate and timely billing on a rational, comprehensible
billing basis reflecting actual consumption, and convenient system for payment of
dues. Simple and well-advertised procedures, guaranteed connection of requested
load within reasonable time, prompt breakdown attendance, and efficient
complaint handling.

Timely actions based on anticipation of the future & perspective planning, and
clear communication on customer issues.

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TO OUR SHAREHOLDERS :

A secure and well managed asset, corporate governance in line with Kumar
Mangalam Birla Committee recommendations, a business growing organically and
through diversification, and satisfied stakeholders.

TO OUR EMPLOYEES :

Opportunities for career growth and development, pride in the organization, and a
sense of belongingness, with the ability to contribute to the organization. Well
defined service conditions and full compliance with labour laws. Accountability
and responsibility for actions including performance incentives based on fair and
transparent assessment and compensation in line with the best in the industry, and
an increased sense of security based on the increased success of the organization.

TO THE REGULATOR :

The equitable satisfaction of all stakeholders, ensuring the long-term stability of

the section and an adherence to regulations and guidelines issued by the regulator,
including inter alias compliance with license conditions, furnishing accurate and
timely information, ensuring techno-economic feasibility of investments, and an
effective consumer grievance redressed systems.

TO OUR FINANCIAL INSTITUTIONS :

Sustained growth and profitability, sound economic appraisal of projects to be

undertaken, security of loan and timely servicing of debts, and timely publication

45 | P a g e
of audited financial statements, including sound accounting & financial practice in
accordance with law.

TO THE STATE GOVERNMENT :

Implementation of reform legislation and of all government policies and directives

as far as is practical, applying public funding and subsidies to the intended
category of consumers. Compliance with the rule of law and electrical safety rules.
The satisfaction of stakeholders.

In return government will assist us by ensuring law and order and enforcement and
assistance with revenue realization.

TO OUR SUPPLIERS :

Transparent and efficient procedures for tendering and timely ordering and
settlement in adherence with commercial agreements.

TO OTHER UTILITIES :

Reliable and secure system operations in accordance with grid code, 0.2 class
metering, and timely readings, an Integrated Information system to provide fast
and accurate interface data, timely settlement observing proper commercial
agreements between entities, and adherence to system operating procedures in
terms of merit order dispatch, security, etc.

46 | P a g e
TO THE PUBLIC :

Effective communication of policies and procedures, a reliable supply to essential

public services, enforcing adequate safety norms and environmental and social
norms, minimizing inconvenience dare to disruptions etc.

We shall be a diversified business with a core function of providing quality,

uninterrupted power, commercial focus considering all techno-economic issues of
investments, and a high level of consumer service with new connections on
demand and low complaint resolution times. Diversifications shall include optic
fiber based activities, consultancy, manufacture, and repairs, and we shall have a
diversified investment portfolio around the globe.

We shall satisfy all stakeholders including the regulator.

We shall be a global industry Leader working in close cooperation with other

utilities supporting self-sustained growth through financially viable business units
and technological leadership, providing a world class cost of supply, and world
class profits, doubling turnover every 5 years. We shall function independently;
implementing prudent safety and environment norms, with a cost of supply based
tariff, without external interference, in a transparent corruption free operating
environment, in compliance with statutory requirements. We shall add value to our
shareholders, safeguard the environment, and maintain our asset base. We shall
maintain a strong image with the general public.

We shall have a Long-term dynamic vision based on strong perspective planning.

We shall have sophisticated procedures including online billing, online queries and
e-Business functions.

47 | P a g e
We shall have the most motivated, Satisfied and best-trained employees with full
competence in all key areas optimally deployed and the most satisfied customers in
the sector.

Our Supply quality shall be: 2% variation in voltage and 0.5 Hz variation in
frequency, with Fault repairs in 1 to 2 hours and redressal of 100% and new
connections will be made on demand.

48 | P a g e
History

 Since independence the State's power sector has grown at a rapid rate,
contributing to the development of agricultural and industrial sectors in the
state. The installed capacity available to the State has increased from about
264 MW in 1959 to about 5,886 MW in 1998. The transmission network has
increased fifty-three folds during this period. The UPSEB today serves about
seven million legitimate consumers, but there are many more who are not
yet on the ledgers of UPSEB. During this period per capita power
consumption has increased from 58 KWH to over 204 KWH (1994-95). As
against this, the per capita consumption in States like AP, MP, Gujrat,
Maharashtra the net average of the States, 319 KWH have been achieved
during 1994-95.

 The power sector has not been able to keep pace with the increase in power
demand in the State. As against connected load of 13954 MW the installed
capacity is only 5886 MW (8600 MW including the share in the Central
sector units). Uttar Pradesh in currently facing an acute power shortage.
Inspite of Energy Supply Management, UP has a peak demand deficit of
about of 15% while its energy shortage is about 8 percent. The power sector
is faced with problems of low plant load factor in its thermal power stations
(about 49%) very high transmission and distribution losses including non-
technical losses, low voltage and frequent interruption. This has resulted in
an adverse impact on the development and economy of the State and the
welfare of the people. The State Government is very concerned about the
49 | P a g e
 continuing power shortage and the frequent power cuts imposed on
electricity customers.

 The root cause of the declining performance of the power sector is the lack
of adequate investments to meet the sector's capital requirements and the
deterioration in sector's efficiency. The primary reason for the lack of
investment is the critical financial situation of UPSEB. As on 31st March,
1997, the accumulated commercial losses of UPSEB, excluding the State
subsidies, were of the order of Rs. 7000 Crores, and cash liabilities of the
order of Rs. 4200 Crores. UPSEB has not been able to meet its operational
cash requirements because of high losses, poor Bill collections and
unremunerative tariff for some category of consumers resulting in poor
creditworthiness. The power sector has not been able to mobilize the
resources required to finance the development activities. The continuing
cash shortfall has also resulted in inefficient operations and in inadequate
maintenance of the existing system. The State's budgetary resources are
extensively used to support the operations of the power sector, which could
alternatively have been used for other social development activities.

 As per the studies carried out, the State will need about 14,500 MW of
additional generation capacity by the year 2011 to meet its power demand.
Substantial investments will be required in transmission and distribution to
supply this additional power and distribution to supply this additional power
and rehabilitate the existing transmission and distribution system so as to

50 | P a g e
reduce system losses and improve quality of power supply. The estimated
investment required in the power sector e.g. for generation, transmission and
distribution, by the year 2011 is about Rs. 69,000 crores. These huge
requirements cannot be met without a massive mobilization of resources,
restoration of the creditworthiness of the power utilities, and the
establishment of a proper enabling environment. The State Government is
determined to overcome the prevailing problems in the power sector and has
decided to restructure & reform its power sector with ultimate aim of
privatization of generation and distribution areas.

51 | P a g e
 MISSION/VISSION OF THE COMPANY

 The goal of the Uttar Pradesh Power Sector Reform Programme is to:

i. Provide cost efficient good quality electricity to all categories of

consumers for economic development/social uplift of the State.
ii. Make the energy sector commercially viable so that it ceases to be
burden on the state budget; and
iii. Protect the investment of the consumers.

 Keeping in view the above mentioned goals, the Government of Uttar Pradesh has
agreed on the following key aspects of the Power Sector Reform Programme:

i. Restructuring of Uttar Pradesh State Electricity Board (UPSEB) into

autonomous and separately accountable entities.
ii. Creation of an Independent Regulatory Body to protect consumers as
well as long term financial health of the Power Sector.
iii. Ultimate transfer of ownership of the assets to public corporate
entities over a phased time schedule.
iv. Rationalization of tariff.
52 | P a g e
 Reforms-Phase I (Corporation): With the increasing volume of activities and
specialization in the field of Generation, Transmission and Distribution and with a
view to improve the performance of these sectors, it has become essential to run
them as separate profit centers. These profit centers would subsequently be
corporatized by establishing following entities:

i. Thermal Generation Corporation;

ii. Hydro Generation Corporation.
iii. Transmission and Distribution Corporation

As a further step to make these entities more responsive to the customers and to
provide better service, the process of involving private entrepreneurs in the
distribution of Electricity has already been started. The Greater NOIDA Area has
been privatized. It is envisaged that the distribution works of Moradabad, Kanpur
(KESA) and Agra zones will be handed over to privatize company through the
competitive bidding route in the beginning of the reform process. This aspect too
will be finalized after requisite study.

53 | P a g e
Restructuring

 Dakshinanchal Vidyut Vitaran Nigam Limited. (DVVNL) –Agra Zone

Discom

 Madhyanchal Vidyut Vitaran Nigam Limited. (MVVNL)- Lucknow Zone

Discom

 Pashimanchal Vidyut Vitaran Nigam Limited. (PVVNL)- Meerut Zone

Discom

 Purvanchal Vidyut Vitaran Nigam Limited. (PUVVNL)- Prayagraj,

Varanasi Zone Discom

 Kanpur Electricity Supply Company. (KESKO) – Kanpur City Discom

 Lucknow Supply Electricity Administration. (LESA) – Lucknow City

Discom
54 | P a g e
 Uttar Pradesh Power Transmission Corporation Limited. (UPPTCL) – State
Transmission Utility

55 | P a g e
Organizational structure

56 | P a g e
Chairman’s Message

Dear Colleagues,

At the outset, I extend Season's greetings and a Very

Happy New Year. I wish you and your family health,
progress and prosperity!

The enactment of Electricity Act, 2003 along with

other initiatives has outlined the contours of a
suitable enabling framework for the overall
development of the power sector in the country. As a
result, power sector in India is on the brink of
witnessing a gradual transformation from a
monopolistic market structure to a market featuring a
vibrant competitive milieu characterized by self-
sustaining and viable growth. I sincerely believe that
similar to any industry, in the case of electricity Sri Anil Kumar
supply also, the client interface or the distribution Gupta (IAS)
segment is the most critical element of the
business because distribution is the area where
energy flows are converted into cash flows. Thus
for the operation of the power utilities to be
sustainable in the long run, the performance of the
distribution segment plays an extremely vital role.

57 | P a g e
It is in this context that our major focus should be on distribution reforms through
effective loss reduction, better collection efficiency and improved consumer care.
Undoubtedly, successful implementation of RAPDRP is going to play a crucial
role in achieving this objective and if we fail to get it going this time, it is going to
be a costly and historical miss. Therefore, I sincerely urge all of you and specially
those, who are directly involved, to undertake this exercise on war footing by
timely completion of GIS mapping, consumer indexing, capacity augmentation, re-
conductoring, installation of new sub stations and lines, replacement through aerial
bunched cable and installation of meters on distribution transformers etc. It is also
my contention, which needs corroboration that with increasing consumer base and
dwindling employee strength, technology and technology alone can be panacea.
Accordingly, we must attempt to introduce advanced technological interventions in
entire gamut of metering, billing and collection related activities to strike some
kind of reasonable success, which will be our first step towards "Turn around". In
this context, I see rapid IT applications taking centre stage to make reforms saga a
reality.

Whenever reform issues are talked about, we have a natural tendency to look
towards the U.S. and Europe. Reasons are not difficult to understand as reform
exercise itself is dominated by experience of these countries. However, we need to
understand whether these models are suitable for India, due to political, economic
and cultural plurality. Secondly even if these models are quite appropriate for us,
we cannot adopt them overnight, given the prevailing situation. Uttar Pradesh is a
State with enormous diversity across regions and in fact diversity persists even
within region, especially between rural and urban areas. This is of crucial
Significance, as more than 60% of our population lives in rural areas, whose
interface with our policy makers is at the minimum. Ignoring this peculiarity may
58 | P a g e
derail the reform agenda altogether. There are good reasons to believe that sector
reforms should not be restricted to corporatization and independent regulation.
These are essential first steps that are necessary, but not necessarily adequate to
bring about improved efficiency and governance, and greater responsiveness to
consumers' needs.

I strongly feel that the level of inefficiency UP power sector is so pronounced that
there are adequate avenues for "quick-wins" to obtain benefits in the short term
particularly on aspects like metering billing and collection related losses, while
investments for long term benefits are rolled in. Thus a two-pronged strategy to
deal with the issues is essential. This must form an integral part of the overall
reform plan, that would encompass the sector restructuring plans, utility business
plans, financial restructuring plans, etc.

Equally important is the need to ensure institutional capabilities in the utilities to

meet and exceed the reform goals. Operating in a monopoly environment with little
commercial accountability has dulled the inherent skills and capabilities of
personnel in this organization that has at one time attracted the brightest and best
technical talent. There is a need to revive those skills and capabilities through
sustained training and capacity building efforts. With rapid strides in technology
and sea change in the operating paradigm of the utilities, this will indeed be an
uphill task. However, for the reform process to be successful there could not be a
task that is of greater importance. Investing in people is also the surest way to
obtain their buy-in for the process and reduce their sense of insecurity in the new
environment. During my short stint as Chairman UPPCL so for, I have always tried
to share this intent with all of you, through my words as well as actions, as I
staunchly believe that communication of this intent to the employees is as

59 | P a g e
important as the initiative to carry out this intent. Equally important is the
adequacy of information to continue the reform initiatives, lend measurability to
the targets and achievements and also to reduce the risks for all stakeholders. It is
apparent that the demands of the new operating environment are going to be very
different from those in the era of integrated utility operations.

I am hopeful that the utilities will rise to the challenge and look at reform
initiatives afresh with the aim of carrying out genuine improvements in service and
efficiency and making Uttar Pradesh an attractive destination not only for
investment in the power sector, but also in the larger economy of the State. The
power sector is the flag-bearer of development of any economy, and the state of the
power sector is often an accurate reflection of the state of the economy. Therefore,
it is for us to take note of this important social and economic responsibility that has
been cast upon us and take necessary measures to propel the State ahead. It is
agreed that the difficulties to bring about additional change in case of management
of public utilities is immense but then making the simple complicated is trite but
making the complicated simple, awesomely simple, that's creativity, which is
required of us. It is in this context that I wish to urge myself and to appeal to all of
you to imbibe few words from ancient wisdom:

"All truly wise thoughts have been thought already thousands of times; but to
make them truly ours, we must think them over again honestly ,till they take root
in our personal experience."

Johann Wolfgang von Goethe (1749-1832)

60 | P a g e
61 | P a g e
ABOUT PVVNL

Pashchimanchal Vidyut Vitran Nigam Limited came into existence in July,

2003 as subsidiary company of UPPCL. The Discom covers in its jurisdiction the
areas of District Meerut, Baghpat, Ghaziabad, Gautambudh Nagar, Bulandshahar,
Hapur, Muzaffarnagar, Saharanpur, Shamli, Bijnor, Moradabad, Sambhal, J.P.
Nagar and Rampur. The Discom comprises of 06 distribution zones based at
Meerut, Ghaziabad, Bulandshahar, Noida, Saharanpur and Moradabad and each is
headed by an officer of the rank of Chief Engineer. The total number of
Distribution Circles and Divisions in Different Zones are 29 and 95 respectively
along with 29 nos. of Test Divisions. Besides there is 01 circle for store and 02
circle each for works and Civil Construction works under direct control of the
Discom Head Quarter. The Discom comprises more then Sixty Six Lacs of
consumers with annual Revenue of around Rs. 16700 Crores in FY2019-20.
PVVNL has 1329 of Secondary sub-stations with an installed capacity of 18944
MVA. The total number of distribution transformers are 516497 with installed
capacity of 27759 MVA.
PVVNL is trying to implement the best practices in the distribution system. The
tools used in achieving the commercial result include the massive disconnection
drive against the defaulting consumers, the implementation of the OTS scheme,
issuance of notices under section 3 and 5 to the defaulting consumers, bill
distribution system through SMS & email, MRI based billing of the consumers
with load above 10 KVA and replacement of electro mechanical meters through
electronic & smart meters and adopting anti theft measures i.e. vigorous combing
in the high line losses areas, providing ABC conductors in Theft prone areas DT

62 | P a g e
Metering, Double Metering of the consumers, Metering with AMR’s. The Discom
has achieved the remarkable enhancement in the revenue realization and thru rate.
At the same time AT&C losses have come down to 19.38% and collection
efficiency is 94.54% at the end of FY2019-20.

63 | P a g e
Organizational Structure

64 | P a g e
EEEUDD – II MEERUT

65 | P a g e
Organizational structure

66 | P a g e
Sections

Revenue Works Establishment

• Billing • Contractual • Payroll
• Revenue Payments • Service Book
Collection • Accounts Mmaintainance
• Billing Compilation • Transfer/Posting
Correction • Salary Payments • All HR
• Tenders Department
• Any Other Work Work

67 | P a g e
Competitors

 bsesdelhi.com

 tssouthernpower.com

 pspcl.in

 indane.co.in

 mpower.in

 cspdcl.co.in

 mpez.co.in

 noidapower.com

68 | P a g e
Major Problems

One of the challenges faced by UPPCL is the increasing cash gap, mainly due to
increased power purchase cost resulting from railway freight increase, coal price
increase, expensive legacy power purchase agreements, change in law for the
memorandum of understanding (MoU) route plants and past liabilities approved by
UPERC. Another bottleneck is inadequate employee strength. The power sector in
Uttar Pradesh has 1.35 employees per 1,000 consumers against the national
average of 2.8 employees per 1,000 consumers. This hampers proper supervision
and monitoring. New 400 sub-divisions have been proposed to address this.

Considering the high theft level, unsecured networks, and the vast geography of
the state, the number of sanctioned theft prevention squads is very low. Only 55
squads are currently manned out of the 88 sanctioned. This is proposed to be
resolved soon.

On the billing and collection front, the remote and sparsely populated rural areas
(some of which are still out of mobile coverage range) make rural billing a
challenging task. Rural collection has always been a challenge due to reasons like
poor capacity to pay, the lack of willingness to pay, poor reach of cash collection
outlets, and not enough fear of disconnection and surveillance. Widespread
application of advanced metering is being taken up now.

Further, 24×7 power might have to be supplied to all categories of consumers,

including rural consumers. This might put an additional burden on discoms’
financial performance as recovery from rural consumers is a challenge. Tariff
rationalization has been proposed to resolve this.

69 | P a g e
We are undertaking efforts to make all consumer services in the state best-in class
and provide these to consumers in a seamless manner. Huge capex will be required
to achieve this.

70 | P a g e
Achievements

The state has witnessed a considerable improvement in the plant load factor (PLF)
and a reduction in the cost of generation of the state generating company’s plants
despite the increase in coal cost and freight charges. The PLF has improved from
58 per cent during 2016-17 to 63.33 per cent during 2017-18 and to 66.55 per cent
during 2018-19. The transmission losses in the state have witnessed a reduction
from 3.7 per cent to 3.6 per cent in the past one year. State discoms have also made
improvements in supply hours and consumer electrification. The discoms have
undertaken system improvements, loss reduction measures, steps for internal
quality control, and consumer-friendly measures.

The electricity supply in the state has increased from 15.28 hours during 2016-17
to 20.08 hours during 2018-19 in rural areas and from 21.27 hours during 2016-17
to 23.15 hours during 2018-19 in urban areas.

A total of 61,058 new majras (hamlets) were electrified during 2017-18 and 60,266
during 2018-19. With this, all majras in Uttar Pradesh have been electrified. A total
of 3.58 million and 6.49 million new connections were issued in 2017-18 and
2018-19, respectively. The total consumer base now stands at over 28.5 million, of
which over 10 million connections were released in the past two years. A total of
35,882 new private tube well connections were released in 2017-18 and 52,477 in
2018-19 as against only 25,854 in 2016-17.

For system improvement, as many as 10,631 and 25,563 distribution transformers

were replaced with higher capacity ones in 2017-18 and 2018-19, respectively. A
total of 92,054 new distribution transformers were added over the past 18 months.
Further, 185 new capacitor banks were added in 2017-18 and 398 in 2018-19 to
71 | P a g e
boost the supply voltage and reduce technical losses. Around 449 separate
agricultural feeders were added in 2017-18 and 938 in 2018-19; this has resulted in
the reduction of peak demand by 500 MW.

The AT&C losses reduced from 32.8 per cent during 2016-17 to 27.67 per cent
during 2017-18 and to 24.64 per cent during 2018-19. In the past two years, over
2.50 million unmetered connections have been converted to metered connections.
Feeder sanitisation/clean up drives in urban areas to reduce the AT&C losses were
a remarkable success. Aerial bunched cabling (ABC) work covering 7,847 km and
886 km has been completed in urban and rural areas, respectively; this has helped
in reducing losses and supply failures. ABC has also been installed in select high
loss pockets (174 projects) in urban areas to reduce theft.

In terms of smart meters, 250,000 meters have been installed for consumption
monitoring, reducing meter readers’ connivance, and remote disconnection and
reconnections. Prepaid meters have been installed in government colonies. New
billing agencies have been appointed (only two agencies per discom) for meter
readings, thus eliminating the problems of bill revision, etc. Overall, the Power
Finance Corporation’s ratings for all five state discoms have improved; the rating
of Kanpur Electricity Supply Company has improved by two notches.

72 | P a g e
Future Prospects

The outlook for the power sector is positive. Despite the financial difficulties faced
by the discoms, they are required to fulfil several social obligations and subsidise
many sectors like agriculture, biomass and solar. Power companies are also
subsidising railway passenger tariffs by way of higher freight tariffs for coal. The
biggest challenge facing Uttar Pradesh’s power companies is to ensure their
financial viability and improve consumer services. The challenge has increased by
the massive increase in the rural consumer base. The discoms are committed to
reduce their ACS-ARR gap to zero before the end of March 2021 and bring in
quantum improvements in their service deliveries.

A number of new initiatives are planned to be launched in the state over the next
few months. These include facilitating new connections through the online system
under the Jhatpat Connection Yojana; extending online services for load
enhancement, replacement of defective meters, and interchange of connection
between post-paid and pre-paid; extention of coverage of aerial bunched cables and
underground cables; implementation of full-fledged enterprise resource planning
solutions; and mapping of all assets on the geographical information system.

73 | P a g e
 CHAPTER-3
 About the Project
 Data Analysis
 Analysis
 Findings
 Suggestions

74 | P a g e
TENDERS

Meaning-

The tender is an offer to perform some task or to supply goods at a fixed price. The
contractors will be invited to submit sealed bids for construction or for the
provision of specifically designed services or goods during a particular time frame
in the initial step of this tender process.

Understanding a Tender

India's e-tender process is structured to ensure that the work to be performed for
the government or a specific client is accomplished reasonably. For example, some
places may have specific procurement policies that direct on how to make a
decision, and which tender to accept.

An open tender is the main form of tender, followed by both the government and
the private sector. The client advertises the tender offers in the local newspaper
along with the critical information of the proposed works inviting interested
contractors.

75 | P a g e
Tenders in India

There are various types of tenders, such as open tender, selective tender, serial
tender, negotiated tender, and term tender.

1. Open Tender An open tender is the principal tender procedure employed by

both the private and government sectors. In the local newspaper,
the customer advertises the tender offer along with the key information of the
proposed works and invites interested contractors.

2. Selective Tender Selective tendering is an alternative that has been developed

to address the open tender procedure's limitation. This tender aims to increase the
quality of bids received and ensures that contractors with the requisite expertise are
given the opportunity and submit the bids needed.

3. Negotiation Tender This is widely used in the engineering and construction

industry, which is the subject of pre-contract and post-contract negotiations.

4. Term Tender Term tender is normally used on projects which require enormous
maintenance. The contractor would be asked to cover several specific buildings at
multiple locations. This tender is also limited to a fixed time, and it may demand
that the criterion be applied to the client's needs.

76 | P a g e
Types of Tenders

Deposit Business Plan Deviya Aapda

• Demand by • Government • Natural

Consumer Scheme Disaster

77 | P a g e
Business plan

78 | P a g e
79 | P a g e
DEVEAI AAPDA

80 | P a g e
81 | P a g e
Process of Releasing Tender

• Requirement on Site
• Estimate/Package/Linkage

• Decision by E.E./ SDO

• Permission by Administration/Financial

• Tender open
• Published in Newspaper/ Update on Portal

82 | P a g e
 Tender Process in: Private & Government Sector & Their
Differences

The Tender Process used by Governments differs from the private sector in that it
is more formalized and more strictly managed to ensure consistency between
departments and locations. In addition, it manages public money and is therefore
accountable to taxpayers to run its operations efficiently.

Both sectors use Request for Proposal (RFP) as their main document to attract
bids but the terminology may differ and there may be additional steps, before and
after, in a Government tender process. Because it is a highly regulated
process Government RFPs have a standard format and structure and usually
require certain statutory documents that are not necessary with private sector bids.

Government Tender Process

In most countries they are required by law to publish or announce their tenders in
one or more public media such as newspapers, trade magazines and more and
more, on their own websites. For sourcing purposes, Government Departments
usually keep a list of approved suppliers which is used to invite bids.

Government and local authorities may ask for “Expressions of Interest” to allow
other suppliers to be added to their list of potential suppliers before they issue
formal documents. Some Governments are now issuing electronic tenders but it is
still regular practice for them to ask bidders to submit their bid in hard-copy form.

83 | P a g e
The Private Sector Tendering Process

Both listed and non-listed companies have more latitude to use a

customized sourcing process that suits their industry and their organization. They
are not bound by the requirement to spend a given budget in a defined financial
year and are therefore free to schedule their buying process to suit business cycles.

Private companies wishing to be seen as ethical and honest adopt what is accepted
internationally as best practice. One area where they may not achieve this fully is
in the providing details of evaluation criteria and weightings to prospective
bidders. This is standard practice in government and generally regarded as the
fairest and most transparent way to award contracts. Private companies are often
reluctant to disclose their weightings in advance.

Selecting a list of bidders to be involved in the tender process is not subject to any
limitations so private companies can limit who they send their documents to as
they see fit. They are also not bound to publicly publish details to whom the
contract was awarded or even to formally advise the unsuccessful bidders.

Managing and completing their tendering process in less time than governments is
really achievable when they are not bound by tight rules. Price negotiation between
the sourcing company and short-listed bidders is normal practice which is limited
by certain protocols in government.

84 | P a g e
Bureaucracy Hurts the Government Tender Process

Because of the bureaucratic tender process used in government many qualified and
experienced suppliers decline to bid due to the many delays that occur in
the sourcing process. This decision is a difficult one as the majority of the high
value opportunities are offered by public sector organizations as they have large
budgets.

Steps to Open Tender

Invitation for Quotations

• Ready Comparative Statement

Sent for Approval to

Competent Authourity
• Approval Received

85 | P a g e
Payments for tenders

86 | P a g e
Schemes/ Methods are used to Increase Revenue

Divisional Level

Increase Billing
Efficiency
• Increase Collection
Efficiency

Raid/Checking

• Takada Calling
• Marketing/Announcements

87 | P a g e
Government Level

OTS
• Marketing/Advertisement

Camps

88 | P a g e
Cash Books

89 | P a g e
Accounts Statements

R2

90 | P a g e
R4

91 | P a g e
R5

92 | P a g e
SJ 1, SJ2 & SJ3

93 | P a g e
SJ 4

94 | P a g e
Collection of Funds

1. Revenue- The amount collected from the depositing of

electricity bills of the consumers are collected in the
Revenue Account of the Division.

2. Capital- The amount collected from the New connections of

the electricity and amount received on them like security,
Processing Fee etc are collected in the Capital Account of
the Division.

3. Ro/Do- The amount collected from the Reconnection and

Disconnection is deposited in the Ro/DO account of the
Division.

4. Shaman- The amount collected from the raids and theft

cases are deposited in the Shaman Account of the Division.

5. Expenditure & GPF- The amount received from the MD

Office.

95 | P a g e
Utilization of Funds

REVENUE • Transfer to Lucknow (Head Office)

CAPITAL • Transfer to MD Office Meerut

• Salary Payments
Expenditure • Contractual Payments
• Other Payments

RO/DO • Office Expenditure

• Transfer to Treasury for Pension of

SHAMAN Employees.

GPF • For PF Payments

96 | P a g e
DATA ANALYSIS

 According to Consumers, How is the filing & record keeping system of

the Division?

97 | P a g e
 According to Employees, How is the ERP system introduced by the
PVVNL for salary payment?

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 What Contractors & Employees think about the contractual payment
procedures of the department?

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 According to consumers, How is the PVVNL electricity billing system
& its realization ?

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 How is the depositing facilities of electricity bill provided by the
PVVNL?

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 According to Consumers, How is the recovery procedure and actions
taken by department from the defaulters & thefts?

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 % of consumers use different ways for depositing electricity bills?

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ANALYSIS

 In this era of virtualization the department still using such old Accounting
procedures but the maintenance of the record is full proof.

 Now gradually department has made some moves to virtualized their

accounting system by which the payment can be make online and to bring
the transparency in the modes operand.

 Slow Working culture department continuously making losses in their all

criteria like revenue, line losses, AT & C losses due to such losses
government of UP thinks regularly for the privatization of the department.

 In proportion to work load, man power is very less in the department.

 In the division there are around, plus consumers whose billing is very
accurate and realization of billing is 95% plus.

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 The procedure for payment to contractors is very lengthy. Department has
made lots of steps for the verification of a bill as explained earlier
irrespective of the amount.

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FINDINGS

 In some cases when the department have to fetch the old records then it took
lot of time to find the record due to improper filing system.

 As I join the training, Department have introduced ERP system for payroll
and enhancing the some software/ ERP for further works of department.

 Due to manual procedure, Department lacks with account submission on

time but the company’s Act 2013 applied on the department so they also
lack in their credit score.

 The realization of 60,000 plus consumers recorded manually and very nicely
reconciled by the division.

 Defaults also been made to the department by the consumers which also
cause line losses, revenue losses but the accounting procedure tries to fetch
the defaulters data & keep trying to recover such blocked funds from the
defaulters.

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 Department is still using out-dated computers which reduces the
performance of employees.

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Suggestions

 Department should bring full online accounting system in all their sections
to bring transparency and accuracy in working.

 Department has introduced ERP System in payroll accounting, they should

bring ERP system in Revenue, works & other departmental works.

 Department should improve their filing system to fetch the old records on
time and also reduce the chances of losing the record.

 Government should recruit more staff to shade the load from their present
employees.

 Department should reduce the lengthy process of contractual payments.

 Department should work for better working environment which help

consumers for better facility.

 Department should bring latest equipments for fast working.

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 CHAPTER-4
 Conclusion

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Conclusions

This survey concludes that the financial decisions related to Revenue collections,
dealing theft cases or defaulters are dealing very well and continuously department
is improving with the facilities of revenue collection and dealing with the
defaulters. As the concern of the payment to contractors the department is
following long process which delays in the payments to months or year (in some
cases) but department is also working on this and starts the ERP system in the
payment of contractors which decrease the mistakes and also reduces the time of
payment.

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 CHAPTER-5
 Bibliography &
References
 Questionnaire

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Bibliography and References

Following are sources which helped me during my summer training-

Books:

 KOTHARI C.R.: Research Methodology Management, 3rd Edition

 GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001

Websites:

https://en.wikipedia.org/

https://www.google.com/

https://www.bing.com/

https://www.sciencedirect.com/

https://www.spendedge.com/

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 https://cleartax.in/

https://www.purchasing-procurement-center.com/

https://www.upenergy.in/uppcl/en

http://pvvnl.org/

https://www.slideshare.net/

Newspaper:

 AmarUjala
 Danik Jagran
 The Hindu

Magzines:

 Power Line Magzine

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Others:

 PVVNL Management
 MTBs of the Divisions

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Questionnaire

1. According to Consumers, How is the filing & record keeping

system of the Division?
A. Poor
B. Ok
C. Good
D. Excellent

2. According to Employees, How is the ERP system introduced by

the PVVNL for salary payment?
A.Poor
B. Ok
C. Good
D.Excellent

3. What Contractors & Employees think about the contractual

payment procedures of the department?
A. Poor

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 B. Ok
C. Good
D. Excellent

4. According to consumers, How is the PVVNL electricity billing

system & its realization ?
A. Poor
B. Ok
C. Good
D. Excellent

5. How is the depositing facilities of electricity bill provided by the

PVVNL?
A. Poor
B. Ok
C. Good
D. Excellent

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6. According to Consumers, How is the recovery procedure and
actions taken by department from the defaulters & thefts?
A. Poor
B. Ok
C. Good
D. Excellent

7. % of consumers use different ways for depositing electricity bills?

A. Cash
B. Cheques
C. NEFT/RTGS
D. ATM
E. Online

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