Thursday, December 31, 2009

DVC in Distress

The Growth Programme

1. Capacity Addition:

Following the Ministry of Power,Govt of India VISION of ‘POWER FOR ALL BY 2012, DVC has been entrusted with massive capacity addition programme of 6250 MW in the XIth five year plan which includes 2500 MW to be supplied  for Commonwealth Games to be held in Delhi in 2010. This apart, existing vintage units of DVC completing their design life required bringing in new units to survive in the regulatory environment and to cater to the exponential demand rising in the Damodar Valley serving the most remote and needy districts in Jharkhand and West Bengal. In this course, the DVC has started construction of three Mega Greenfield Projects (3200 MW) at (i) Andal (1000 MW),West Bengal (ii)Raghunathpur (1200 MW),West Bengal and (iii) Koderma (1000 MW), Jharkhand. Besides, three extension Projects (2000 MW) at (i) Mejia(1000 MW),West Bengal, (ii) Chandrapura (500 MW), Jharkhand and (iii) Bokaro (500 MW), Jharkhand are also being constructed. 1550 MW capacity is also being added by DVC through JV route of which 1050 MW is under construction in Maithon, Jharkhand with Tata Power Ltd and 500 MW is under consideration in Bokaro, Jharkhand. Matching Transmission System Construction in parity with this has also been taken up for evacuation of power. The projects are in full swing of construction to meet the most tight commissioning schedule.

2. Investment & Financing :

Such a massive capacity addition programme involves investment of around Rs 30000 Crs which is being financed partially through  internal accruals of DVC and mostly by borrowings. The borrowings of more than 18000 Crs as required have mostly been arranged through PFC,REC and Banks. Participating Member Govts (Central Govt, West Bengal Govt, earlier Bihar and now Jharkhand Govt) of DVC have stopped paying capital contribution to DVC since the year 1968-69. Even after that DVC has added capacity through the decades with internal accruals arising out of profit and market borrowings and has grown to the extent of around 3000 MW  Power Generating Utility. DVC has over the years become a robust self financing Organisation with expert professional skill, growing without any budgetary support unlike other PSUs and has got a net worth of Rs 16806 Crs.DVC has now taken off for augmenting its generating capacity from 2500 MW to 10000 MW with commensurate power evacuation system based on it’s strength of internal accruals and lenders confidence.

3. Execution:

DVC employees irrespective of officers and staff , with limited human resource took up the challenge to achieve this feat within a tight  schedule. EPC contracts for different packages had to be awarded in very short period to maintain the schedule. This was possible due to tireless work by all the honest and dedicated DVC employees. While awarding contracts, recommendation of consultants and NIT were strictly adhered & EPC contracts have been awarded in most transparent manner. In all cases, the contracts have been awarded as per the final decisions taken by DVC Board where observer from Central Govt and Independent observers from organizations like NTPC/CEA were also present. BHEL is executing projects at Mejia, Andal, Koderma and Bokaro while RIL is executing at Raghunathpur.

4. Management:

DVC is managed by a Board called ‘Corporation’ comprising a Chairman appointed by the Central Govt, a member from Govt of West Bengal (usually, Energy Secretary), and a member from Govt of Jharkhand (usually, Energy Secretary). Invitee observer members are also present in the Board from NTPC, CEA and ministry of Power, Govt of India. The post of Chairman, DVC remained vacant since 1st Dec,2008 after superannuation of the earlier Chairman on 30th Nov,2008. It goes without saying that at such a crucial juncture, DVC required continued and regular management team so that these fast track  projects are not delayed. However the same did not happen. There was no full time  Chairman. Sri Subrata Biswas, Secretary (The CEO), DVC looked after the projects besides day to day administration and Finance. It was after long 10 months painful waiting that DVC got a full time regular Chairman when Sri Subrata Biswas IAS, B.Tech (IIT, Kharagpur), MBA (IIM,Kolkata) was appointed on 14th Oct,2009 after obtaining approval of the concerned authorities. Consent of Owner Govt i.e. Govt of West Bengal and Govt of Jharkhand was also obtained priorhand. Sri Biswas was already holding the charge of Secretary, DVC. However, meanwhile Sri Umesh Kumar, FCA has joined as Financial Adviser of DVC. The management team of DVC is now comprised of seasoned leaders with honest and dedicated approach  having immense power of motivation amongst its employees. But the management team is still not complete as we require a full time Secretary also at the earliest.

                                                                The Hurdles

1. Coal Shortage and related issues:

DVC has been suffering in recent times due to shortage of coal  which is the crisis of other utilities also. Moreover, DVC regularly suffers with a problem of coal theft from the train rakes reaching DVC projects. DVC management  having full cooperation from the employees deals the issue strongly with active support of Indian Railways as RPF has now been arranged by the Rail Authorities. DVC is also importing coal to combat the coal crisis. Coal India is trying their best to supply coal for our power houses. However, now we require adequate coal to run the units in full load.

2. Vilification Exercise:

It has been observed for quite some time that various vilification exercises are being carried out against Damodar Valley Corporation (DVC) as well as its executives and management with ulterior motive of destabilising DVC by tarnishing it’s image. These concocted vilifications are not only creating constraints against ongoing construction work of DVC but also affecting employee morale. The  Govt, and the public at large are being misled through incomplete information. Some vested interest group does not want that DVC shall grow and contribute immensely to the economic growth of the eastern India and they are vilifying this organization and its employees who are trying their heart and soul and working day and night to complete the mission taken by DVC for augmenting its generating capacity from 2500 MW to 10000 MW. Their sole objective is to destabilise and destroy DVC as well as to retard the growth of eastern India. They also aim at diverting financial institutions from investing in DVC by tarnishing its image. They are attempting dislocation of DVC by making it weak  so that they can break DVC in parts. DVC’s growth must be  at clash with their interest. Such dark faces need to be identified through proper enquiry.  

3. The impending sufferings

Such effort to destabilise DVC through vilification may cause sufferings for 11000 employees and 14000 pensioners in this crucial phase when it has committed huge capital expenditure worth more than Rs 30000 Crs  with borrowing of more than Rs 18000 crs for the capacity addition programme.

                                                     The Voice Within

  1.   Protest & Appeal:

DVC Officers Forum joining hands with DVC Employees and their Unions alongwith DVC Pensioners Federation irrespective of caste, creed, colour carrying the voice of 11000 employees, 14000 pensioners and their families strongly condemn such vilification exercise to deprive DVC of a stable management and make it a playing ground for groups who ultimately want to break DVC in parts.

We also appeal before all the Participating Member Govts i.e. Central Govt, West Bengal Govt and  Jharkhand Govt to set up enquiry into this deliberate and motivated vilification exercise to unveil the dark faces and take appropriate actions for playing with the fate of 11000 employees, 14000 pensioners and their families involving 300000 people at large.  

We also pledge our best effort to ensure timely commissioning of the construction projects  with due support of Govts, Agencies carrying out the construction work and the Management. We also want to place that we will stall every effort to destabilize DVC  by any forces in whatsoever manner and never allow to break DVC in parts . We also appeal to the DVC Management to continue in not bowing down to any unjustified demands of any interest groups.   

2. The Road Ahead :

DVC is an unique Organisation having different  character from all other PSUs set up in India. DVC has been entrusted with discharging the State Functions also. DVC Officers Forum, DVC Employees and their Unions alongwith DVC Pensioners Federation are confident that given the due support of Govts, Agencies, Media and the public at large alongwith a regular, stable and competent management as now,this pioneer organization which brought the country’s first multipurpose River Valley Project,  running into its 63rd year of journey, will be the leading power major of India, within a few years. 

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