Eighth AIMS International Conference on Management January 1-4, 2011

Analysis of Financing and Investment Practices in Karnataka Power

Corporation Limited

Tanaji G. Rathod
[Link]@[Link], tanajirathod@[Link]
Karnatak University, Dharwad

Based on its research objectives, this paper investigates the efficiency on operational and financial performance
of power generation projects of Karnataka. As a case study, it is explorative and descriptive in nature. Basically
the power sector of India is beleaguered with several inherent bottlenecks like, high T&D losses, scarcity of
energy resources, dearth of large funds, long gestation period, and poor management at existing utilities, socio-
economic and environmental issues. This is not exception even to Karnataka. Since early 90s, rapid
industrialization, urbanization, and improvement in agricultural activities have taken place. Hence the demand
for electricity has outpaced the supply position in India. Therefore gap between peak demand and supply
position of energy is consistently persisting. The study says that in order to support a growth rate of GSDP of 8
plus percent per annum in Karnataka, the growth rate in power supply needs to be at least over 5 percent
annually which leads to an investment requirement of approximately Rs.2,000 cores per annum in the power
generation sector alone. In view of the above, this case study of research work has been carried out in
Karnataka Power Corporation Limited (KPCL) which is the single largest power generation company in
Karnataka. To know the operational efficiency and financial health of the Corporation, to find out the
inefficiency in the system and to suggest the ways and means for the KPCL, three fold testing approach has been
applied in the research work. Firstly, by way of financial parameters, secondly by questionnaire based survey
and thirdly by inter-firm comparisons. The financial parameters such as liquidity ratio, leverage ratio, turnover
ratio, profitability ratio, EVA, inter-firm comparison etc have been applied to test the financial performance of
KPCL. To get the primary information, questionnaire was served to 200 senior technical and non-technical
officers of the corporation (which represents 10 percent of total officers on random sampling data basis). The
opinions and suggestions which were received from the various respondents have been interpreted in this
research work. The performance of the KPCL is compared with the major power generation companies of India
like NTPC Limited, Reliance Energy Limited, The TATA Power Company Limited, NHPC and APGENCO. This
research study has brought out the new benchmarking standards and suggested several innovative management
practices for the power sector players.

JEL Code: G31, G32, L94, O22, Q41.

Keywords: Finance, Power Generation Sector, The Electricity Act 2003, Karnataka

1. Introduction
“Nothing moves without power and power does not move without finance”. Hence corporate finance
embraces vital role in the power sector. Electricity is today a basic human need. It is the critical infrastructure
facility on which the economic activities are fully dependent upon. The challenge of implementing electricity
restructuring is compounded in most developing countries by unfavorable initial conditions. Due to major
holding by the state-owned-public utilities, privatization has been an essential part of electricity restructuring in
most developing countries. Hence reforms in the industrialized nations took place in the context of well
functioning electricity systems providing reliable power to all on a financially and commercially viable basis.
However, the electricity sector has become both more complex and deeply controversial across the globe.
Therefore to remove such hurdles, the Electricity Act 2003 has been enacted and opened up plethora of
opportunities to investors in India. It is encouraging competition through various policies and government
decisions. The economic growth of Karnataka calls for a parallel matching rate of investment in electric power
industry. The reform process has been highly politicized and in some cases grossly ignorant of the physical
realities of operating electric power projects and grid. Many of the global changes in the electric industry are
changes in ownership and management. These changes are concerned with putting pressures on enterprises to
behave more commercially, but without necessarily changing the structure of the industry. Many important
economic issues arise when a system is moved from government ownership to commercializing, corporatizing
and privatizing.
Hunt and Shuttleworth (1996) says that for the government and industry clients around the world for the
changes taking place in the electricity sector and provided the tools needed for the newly emerging world of
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competition in the generation of electricity and choice for consumers. They have focused on four areas viz.,
alternatives for restructuring; the structuring of contracts; the development of spot markets; and transmission
pricing. This framework is prevalent across the globe in the power sector. They have asserted four reform
models to structure an electric industry, which are defined by the degree of competition. These are as follows.
Firstly, the Model-1 has no competition at all. Model-2 allows or requires a single buyer or purchasing agency
to choose from a number of different producers, to encourage competition in generation. Model-3 allows
Distribution companies to choose their supplier, which brings competition into generation and wholesale supply.
And Model-4 allows all customers to choose their supplier, which implies full retail competition. Based on this,
the world of electricity has changed radically in last two decades. Therefore the overall focus is on the Model-4
which is the world of future in the power sector. The successful restructuring and privatization of the UK
electricity industry caused many countries around the world to rethink the structure of their own electricity
industries and other public utilities. The change in the electricity sector has occurred across two dimensions,
industry structure and ownership. On the industry structure dimension, the difference between the various
models is in terms of the extent of competition introduced.

2. Data Collection and Research Methodology

The researcher has made a survey study by visiting various power plants in the State. The audited annual reports
of the corporation for the five years (FY 2002-03 to 2006-07) have been studied in detail. Apart from the survey,
the researcher has served questionnaires to test the operational and financial performance of the corporation. It
was served to 200 senior officers comprise of technical and non-technical area. They were Executive Directors,
General Managers-Finance and Accounts, Chief Engineers, Executives Engineers and Assistant Executive
Engineers and Accounts Officers who are working in various power plants and Head office of the corporation.
The questionnaires were prepared to test he overall operational and financial health of the corporation. It has
been asked the views of respondents covering on the equity, reserves and surplus of the corporation, whether it
is feasible to enter into capital market through IPO or it has to resort to government support. How the fixed
assets and current assets are managed? Is there any potential to diversify the business activities with existing
manpower and resources? How to reduce various operating expenses? How to improve the operational
performance of the hydroelectric, thermal power station and wind power plants across the State? Has it prepared
to implement the modern management tools like Economic Value Added and Balance Scorecard? In the
research study, based on the survey results and analysis of financing and investment behavior of the corporation,
the results have been arrived at. For the analysis of financial data various financial ratios, time series analysis,
inter-firm comparisons, cash flow statements, multiple regression analysis, graphs, percentages etc., have been
used. The focus is on the operational measures and more on financial perspective side which measures
company’s strategy, implementation, and improvement in profitability, maintaining liquidity and solvency for
both short term and long term range.
For secondary Data, it has been obtained from audited annual reports of the KPCL for the five years. Related
research working papers, PhD thesis, National and International reputed reviewed journals have been referred
to. It is found in the earlier studies that most of the studies have attempted to investigate the issue based on the
statistical analysis, economic study from the published financial data of the concerned companies or sector. But
there is no any study in Karnataka especially in power generation segment. Therefore, the present study has
been conducted by applying a three-fold approach – a survey of the managerial perceptions on financial and
operational management as well as the statistical analysis of published financial data of the Karnataka Power
Corporation Limited and inter-firm comparison study for the FY 2004-05.

3. Objectives of the Study

In the literature review study, it revealed that most of the power generation utilities of India are not practicing
prudent financing and investment decisions in convergent with global standards, benchmarks and corporate
social responsibility practices. They are facing all kinds of new emerging issues on account of liberalization,
privatization, and globalization and WTO compulsions. Since the financing and investment decisions are the
most significant and delicate areas in the field of corporate financial management, the present research study is
undertaken to analyze the efficiency of financial performances of KPCL and its impact on the business and to
identify the problems faced by them and to suggest ways and means. The present study broadly focuses on
Corporation’s financing and investment decisions i.e., How far the existing financing and investment decisions
are prudently taken to increase returns on capital employed? How the assets are utilized and what is the
management style etc. This study is focusing on stake holder’s interest in the power sector. The objective of the
study is to review the overall status of power sector and to know the impact of the reform progress initiated by
the government under the Electricity Act 2003. Keeping in view the interest of all the stakeholders, the present
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study is aimed to diagnose the financial health, operational performance and to suggest the top management,
decision makers to maximize the stake holder’s value. Hence it was decided;
a) To review the performance of power generation sector of Karnataka.
b) To identify the existing problems associated with the existing Financing and Investment Management
in Karnataka Power Corporation Limited.
c) To suggest the ways and means for improving its financing and Investment practices to enhance the
profitability and overall operational efficiency of power plants of the organization.

The results of the investigation have been focused on financing and investment decisions contributing to the
business performances of the Corporations. However, the geographical coverage of the study is confined to the
Karnataka State only. However, it is presumed that the results of the present study will be of great value to the
companies involved in power generation especially in the developing economies. The outcome of the study
would also help the company to improve the financial performance, to formulate suitable strategies and
programmes and set benchmarks, which may lead to become world-class power generating company. The
findings of the study are expected to be benefited to the corporate managers, policy makers, fund managers,
investors, economists and researchers.

4. Literature Review
For the research study, several literature works has been referred to. Very few of them have been mentioned
here like Merton Miller H and Franco Modigliani (1966) while discussing on the topic “Some Estimate of the
cost of capital to the electric utility industry” have attempted to develop effective methods for inferring the cost
of capital relevant for optimal investment decisions from data on the market value of securities and presented
some actual estimates of the cost of capital for a sample of large electric utilities for the year 1954–1957.
Ranganathan V (1977) proposed a “Relative Net Benefit” measure in his research study. The application of
which will make comparison of alternatives explicit mandatory and hence it will maximize the benefits even
when market costs are used. Chidambar Iyer (1980) made a detailed study into the current practices of costing
and pricing electricity in India in general and with particular reference to Karela State Electricity Board (KSEB).
Sudhakar, (1988) examined the detailed investment-planning problem in the thermal power-generating sector. It
has been formulated in a dynamic context, which highlights the constraints to those decisions. Navarro Peter
(1996) proposes a federally coordinated restructuring plan for opening the electricity generation market to all
players in the utility industry in the United States. To prevent the institutionalization of high electricity rates and
continued high regulatory costs, utilities should be denied full recovery of so-called stranded costs.
Amulya K N Reddy, et al., (1991,1997) examined the report of the Committee formed by government of
Karnataka on electricity planning in Karnataka i.e. Long Range (1987-2000) Plan for Power Projects in
Karnataka (LRPPP) on the basis of the development-focused end-use-oriented (DEFENDUS) paradigm. They
say that efforts are clear-cut examples of the failure of the conventional consumption-obsessed supply-biased
approach to energy planning. Sethu, G (1994) examined in his research study “Some Issues in Pricing Bulk
Electricity” that the prevailing national and international practices for determining the norms for NTPC. His
work tries to determine the cost of equity for NTPC through independent means using the existing ideas in
corporate finance. Michael Pollitt (1997) has clarified that what has become clear in writing this review is that,
in spite of the fact that so many countries are engaging in a process of electric utility reform, electricity
privatization is still at too early a stage in most countries to provide clear evidence on what its impact is likely to
be. Paul Joskow (1997) has discussed the electricity sector reforms that are taking place in the United States.
Electricity restructuring and regulatory reform is likely to involve both costs and benefits. On the benefit side, a
competitive generation market can significantly reduce many of the medium-and long-term inefficiencies. R V
Shahi (2005) has made compilation of various issues which confront the Indian power sector especially during
nineties. The inadequate growth of power sector, particularly in the last fifteen years, has lead to a situation of
serious mis-matches, both in quantitative terms as also in qualitative aspects, between the requirement and what
is provided. It is suggested that the commercial revival of electricity sector is lies with through its proper
restructuring. Another area of concern is that the poor performance of the existing power generating facilities.

5. Review of Power Sector in Karnataka

Basically, the power sector in India falls in the Concurrent List under Entry 38, List III of the Seventh Schedule
read with Article 246(2) of the Constitution of India, 1950 and hence, both Union and States of India have
jurisdiction over this sector. The State Legislature has full power to legislate regarding the power sector, subject
to the provision that the State enactment does not conflict with any Central enactment. Till 1995, the investment
in energy sector has been almost exclusively reserved for the public sector which controlled about 90% of the
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capacity. The share of energy in public outlays has varied between 27-30% of budget over the period 1980 to
1995. Public investments in electric power alone had a share of around 25% in the total public investment. After
the liberalization and reform process initiatives, it has come down significantly with the advent of private sector
participation. The State has been scarcely endowed with resources like coal, oil or nuclear power compared with
the hydro-electric power. The west-flowing rivers are all gifted with hydro-power potentially which is estimated
at 5,500 MW. Karnataka’s wind electricity future appears far brighter than it does to the supply-side. Karnataka
is blessed with long coastal line of 400 kms where the possibilities of power generation by using tidal motion of
the Arabian Sea may be examined by making studies to determine the mode of development and the economic
viability for the state. Prof. late V.K.R.V .Rao (1985) had noted inadequate existing capacities of Karnataka and
suggested more effective action is needed for getting Karnataka’s rightful share from Central generation of
power.
Karnataka State has 8,794.67 MW installed capacity as on 31st January 2008. It comprises of 3,2,88 MW
Hydro electric (37%), 3,757 MW thermal power (43%), 1,558 MW renewable energy (18%) and 190 MW (2%)
from nuclear energy at Kaiga in Karwar. Karnataka Power Corporation Limited which holds 57% of the total
installed capacities (Table-1). Many organizations such as KPTCL, Power ministry, Central Electricity authority
and planning commission of Government India etc., have carried out the detailed study on power sector and
projected that there is a huge gap in demand and supply of electricity in Karnataka. As per the KPTCL
projection, based on the forecast of scenario approach, it has been estimated for the end of FY 2012 that it
would be required at least 10,964 MW with energy of 60,894 MU respectively. Energy requirement for the FY
2005-06 was at 34,578 MU. Against which, it was able to supply 34,327 MU with all sources. And peak
requirement was at 6,160 MW. Against this, it was able to get 5,558 MW which represents a shortage of 9.80%.
Whereas for the FY 2006-07, energy requirement was in the State of 40,845 MUs. Against which, it was able to
supply only 39,996 MUs with all sources. And peak demand was at 6,514 MW in FY 2006-07. Against this it
has met only 5,811 MW with a shortage of 703 MW (10.8%). As per the projection of 11th Five year plan of
government of India, in the next four years (2007-08 to 2010-11) it shows that nearly 2080 MW is going to add
in the installed capacity in the State. Therefore the corporation has to contemplate to set up new Units at least
500 MW of installed capacity per annum. It requires at least about Rs.2000 crores for this investment.
Therefore, the financing and investment programmes to be drawn up the corporation separately. If the State
Government is serious about achieving a growth rate in the State domestic product of 8 per cent, then the power
availability in the State will have to increase by at least 5 per cent of installed capacities each year.

Table – 1: Installed Capacity of Karnataka as on 31.01.2008

(MW)
Sector Thermal Hydro Nuclear Res Total
State 2097.92 3288.20 0 449.10 5835.22
Private 586.50 0 0 1109.38 1695.88
Central 1072.67 0 190.90 0 1263.57
TOTAL: 3757.09 3288.20 190.90 1558.48 8794.67
Source: Ministry of Power Website: [Link] , last accessed on 22.2.2008

6. Initiatives on Power Sector Reforms in Karnataka

The Government of Karnataka has recognized the situation of acute power shortage. The careful analysis of its
root causes and a wide debate on options available has decided to accelerate the reform process of power sector.
Government of Karnataka announced its general policy on power reforms during January 1997. Karnataka
Electricity Reforms Act 1999 was brought into effect in June 1999. In November 1999 the Karnataka
Electricity Regulatory Commission was constituted. The Memorandum of Agreement was entered into with
Government of India during February 2000 to implement reforms in the power sector. As a second step, the
Karnataka Electricity Board was dissolved and in its place, Karnataka Power Transmission Corporation Limited
(KPTCL) has been incorporated under the Companies Act. These are important steps, which have laid
foundations for further reforms aimed at resolving the problems faced by the sector. Government of Karnataka
has decided to launch a new wave of reforms and complete the reform process in the shortest possible time.
"The ultimate objective of the power sector reforms is for the government to withdraw from the power sector as
an operator and regulator of utilities".
Karnataka Electricity Regulatory Commission was established and made functional in November 1999.
Further to the reform process, distribution function was taken out from KPTCL and established four distribution
companies viz, BESCOM, MESCOM, HESCOM and GESCOM and monde operational from 1st June 2002.
Further a three year metering programme and energy audit was launched. An Anti-theft law to curb and reduce
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theft of power was brought into force in April 2002. In order to sustain the growth of its economy and reduce
poverty, Karnataka needs to implement an in-depth reform of its power sector. In spite of some impressive
achievements, power sector has become a major bottleneck to the economic development of the State and has
not been able to meet the needs of the people of Karnataka, in particular, that of rural population and the poor.
Power Sector is also exerting a considerable drain on Karnataka's public finances by way of subsidy, capital
investment etc., which in turn reduces capacity of the State Government to address social needs, notably for the
most vulnerable segments of the population.
The indifferent status of availability, quality and reliability of power has reduced the competitiveness of the
Karnataka industry; Rapid increase in consumption by irrigation pump sets has imposed high costs on KPTCL
with regard to its agricultural and rural operations. High costs on consumers are also attributable on high T&D
losses. The poor quality of power and resultant damage to their machinery has left a vast number of consumers
dissatisfied. Furthermore, large part of rural population still does not have access to electricity services. The
important objective of the reform process of the power sector is not only to invest the utilities with the corporate
status, but also to grant them adequate organizational and functional autonomy to enable them to work
independently, with adequate powers to manage their affairs on a sustainable basis. At the cost of the repetition
of Detailed Policy Statement in the year 2001 which brought out by the Government of Karnataka on the Power
Sector reform process specifically proposed the grant of maximum autonomy to the restructured companies to
manage their business along with commercial lines. However, this has not yet been provided, which is obviously
a major impediments to the reform process. According the Chairman of the KERC, ‘the restructuring of the
power sector is a failure since electricity companies are not functioning independently’.
The way forward for power sector reform in the State is the political commitment. And the feasibility of
linking central government assistance with the progress of effective implementation of the reform will be one
such possible measure. The improving recovery from agricultural sector is needed which is main reason for the
continued poor financial performance of the restructured electricity supply companies in the State. Planning and
monitoring agency or ministerial committee under the chairmanship of Chief Secretary should be set up to
review the implementation of reform policies. An advisory group of experts and professional with vide
experience and expertise in the field must be established to assist the Steering Committee in its tasks. The
practice of appointing the CEOs of KPTCL as the Chairperson of DISCOMs must be discontinued so that they
can operate independently on commercial mode. Efforts should be in place to develop a competent cadre of
professionals to man senior positions in the power companies. There should be an establishment of a detailed
financial action plan for continuing the reform efforts with clear objectives and process after getting approval of
KERC. There should be enforcement of performance contract with the public sector power utilities so that
efficient performance can be obtained. And the power supply companies should be encouraged to outsource the
non-core activities. It helps them to reduce cost of operation and improve collection efficiency. As a advanced
step in reform process, introduction of competition in distribution segments in necessary. It has been brought
substantial gains for the consumer. Karnataka can follow US model of Provider of Last Resort (POLR) by
mandating all distribution utilities to procure their future requirements of power through open competitive
bidding. For retail competition, the system of POLR with POLR price being fixed with reference to market price
can be the way forward ( Rasmi Ranjan Das, 2010).

7. Profile of Karnataka Power Corporation Limited

Karnataka was the first State in the country to conceive and setup a professionally managed power corporation
to plan, construct, operate and maintain power generation projects in the State. The Karnataka Power
Corporation Limited was incorporated on 20th July, 1970. Starting from an installed capacity of 746 MW at its
inception, it has now reached an installed capacity of 4995 MW and generated 26,635 MUs as on 31.3.2007
(Table-2). Its profit merely of Rs.13 lacs in 1970 rose to Rs.322 crores in 2006-2007. At present, it owns and
operates 31 dams 19 power generating stations with capacity ranging from 0.35 MW to 1470 MW. As on 31st
January, 2008, it has achieved turnover of Rs. 3,750 crores with 4,995 MW of total installed capacity and 6,200
employees. It is supplying more than half of electricity requirement of the State. It holds the fixed asset base of
Rs. 8,000 crores, and generated electricity 26,635 MUs as on 31.03.2007. It holds more than 65% of total
installed capacities (MW) of Karnataka and supplying 70% power supply to the state. In terms of installed
capacity as of now, hydel capacity accounts at 3393 MW accounts for 66 percent of the total installed base,
while thermal capacity at 1598 up to 32 per cent of the total and wind mills at 0.10 per cent. The Plant Load
Factor at the thermal power station has achieved at 89.17% in the FY 2006-07 with auxiliary consumption of
8.22%. The specific coal consumption was at 0.65 Kg/Kwh and specific oil consumption was at 0.44 Ml/Kwh.
Whereas the plant availability factor ahs achieved at hydroelectric power plant at 93.25%. The installed capacity
has increased at 14.81% whereas the electricity generation has increased at 55.42% during the five year period.
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As of February 2008, it has manpower of total 6231 persons comprise of 2390 officers and 3841 workmen. The
Corporation contributes more than 65 per cent of the electricity requirements of the State.

Table 2: Operational Performance of KPCL

Particulars 2002-03 2003-04 2004-05 2005-06 2006-07
Installed Capacity (MW) 4350.48 4365.48 4640.50 4640.50 4994.82
Capacity addition during year 228.00 15.00 275.00 0 354.32
Total Electricity Generation (Mus) 17138 18426 18993 19888.93 26635.44
- Thermal 10292 11393 10731 9164.72 11483.43
- Hydel 6835 7017 8247 10709.12 14997.45
- Wind 11.00 16.00 15.00 15.09 14.93
Sources: KPCL Annual Reports for FY 2002- 2007.
*As of FY 2009-10, KPCL holds 5976 MW, generated 26020 MUs and has 6300 employees across the state.

8. Reviews with Operational Parameters

On detailed study and analysis of the operational and financial performance of the KPCL for the FY 2002-03 to
FY 2006-07, the following results are arrived at. The total installed capacity which was at 4350.48 MW in FY
2002-03 has increased to 4994.82 MW in FY 2006-07 with an addition of 644.34 MW which represents 14.81%
over the base year. Whereas the electricity generation which was at 17138 MU in FY 2002-03 has rose to
26635.44 MU in FY 2006-07(Table-2). It represents the increase of 55.42% over the base year. The Plant Load
Factor which was at 88.23% in FY 2003-04 has increased to 89.17% in FY 2006-07. It was also maintained at
100.50% during the March 2007. Therefore the respondents have said that there is a chance to improve overall
operational efficiency of the power plants. Though the power plants are operating at comfortable level, it should
make further efforts optimum utilization of power plants. Based on the type of energy sources, the power plants
and efficiency are narrated here below.

8.1 Hydroelectric Power Stations

Installed capacity of 3,392.35 MW as on 31.3.2007 has generated 14,997 MUs. As per the opinion of
respondents, nearly 71% of them they have said that there is a chance for further improvement of efficiency in
hydroelectric power projects of KPCL by putting efforts in Renovation, Modernization and Up rating
programmes. Therefore it should put further efforts on increasing of efficiency of power stations.

8.2 Raichur Thermal Power Stations

These seven Units of 210 MW each have generated 10,292 MU in FY 2002-03 and have increased to 11,483.43
MU in FY 2006-07. It represents the improvement of at 11.57% over the base year. These power plants were
operated at PLF of 89.18% with an availability factor of 93.26% during the FY 2006-07. As per the opinion of
respondents nearly 66% of them have said that there is a chance for further improvement of efficiency in RTPS.
Therefore it should put more efforts to increase the utilization of power plants; Inventories should be utilized at
optimum level and better utilization of fixed assets.

8.3 Wind Power Projects

In the wind power projects, the installed capacity which was at 4.53 MW has been increased hardly to 4.55 MW
over the five years. It has generated 14.93 MU in FY 2006-07. The Karnataka has huge potential of wind power
of 7500 MW. Out of which only 252 MW has been tapped in the State so far. There is need for greater
momentum and rapid increase in volumes in the wind power capacity. As per the opinion of respondents, 65%
of them have said that still there is a chance for further improvement of efficiency in wind power plants.

Therefore to bring down the overall operational and maintenance cost of power stations, it has to evolve and
implement a separate cost control programme. A steering committee under the chairmanship of Chief Engineer
(Electrical Designs) has to be constituted at corporate office and at project areas or power stations and submits
quarterly report to the Management for review. Since most of the hydroelectric, RTPS power plants are older
more than 15 to 20 years, the corporation has to pay more attention on Renovation, Modernization and UP-
rating (R,M&U) Programme.

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9. Reviews with Financial Parameters

Next coming to the analysis of financial performance based on the audited balance sheets of Karnataka Power
Corporation Limited for the period of year 2002 to 2007 and opinions which are received from the various
respondents on the aspects of operational and financial performance of the KPCL, the following observations
are noticed and analyzed here below. 46% pf the total respondents have told that the equity, reserves and surplus
is not sufficient. 39% of total respondents have told that the corporation is in need of government support by
way of financial assistance of budgetary support. 50% of the total respondents have told that the KPCL may
like to go to primary capital market to raise the required funds through IPO and to list it on the Stock Exchange.
Therefore the corporation has to envisage increasing the equity paid up capital for long term use so as to
maintain debt equity ratio at comfortable level. It should also explore possibilities to enter into capital market
through Initial public offerings (IPO) with requisite government approvals. There is no dearth of funds in the
capital market. Apparently, it can be witnessed in the recent IPO of Reliance Power Limited. This company
garnered (65 times over subscription) of Rs.7,50,000 crores from all categories of domestic and international
investors, as against the required issue size of Rs.11,560 crores. Based on the annual reports, the abridged Table
-3 on financial performances is placed here.

Table 3: Financial Performance of KPCL

(Rs. in Crores)
Sources of Funds 2002-03 2003-04 2004-05 2005-06 2006-07
Equity Paid up Capital 662.98 662.98 662.98 662.98 662.98
Reserves & Surplus 1315.22 1375.48 1599.81 1836.27 2262.37
Total Loan Funds 2845.27 3391.34 4038.14 4756.14 5055.52
Total Fixed Assets 3635.10 3777.81 4046.21 4483.56 5489.99
Net Current Assets 1146.07 1616.32 2199.01 2739.00 2472.70
Total Turnover 2164.04 2496.68 2617.04 2669.56 3750.37
Total Expenditure 1916.12 2227.48 2349.59 2325.00 3379.31
Profit After Tax 240.69 223.23 239.46 251.58 322.32
Book Value per share (Rs.) 2983.79 3074.69 3413.05 3769.71 4412.42
ROCE (%) 12.17 10.95 10.58 10.07 11.02
EPS (Rs) 363.04 336.71 361.19 377.47 486.17
Dividend (%) 2 2 2 2 2.24
Debt Equity Ratio 1.44:1 1.43:1 1.72:1 1.82:1 1.66:1
Current Ratio 3.19:1 4.63:1 5.09:1 8.32:1 3.72:1
DSCR 1.03:1 2.44:1 2.61:1 2.19:1 2.20:1
Source: Annual reports of KPCL.
*As of FY 2009-10, the KPCL has the asset bases of Rs.12500 Cr, turnover of Rs.4800 Cr and profit after tax is
at Rs.436 Cr.

9.1 Debts:
And on the debt management side, since most of the bonds and loans are raised on government guarantee and
repayment has to be done from time to time. The corporation has to contemplate to create Debenture
Redemption Reserve. The loan funds have been increased from Rs.2845.27 crores in FY 2002-03 has increased
to Rs. 5055.52 crores in FY 2006-07 which represents the increase of 77.68% over the base year. The increase
was due to investment in new power plants at Bellary thermal power station and other ongoing projects.

9.2 Fixed Assets:

The Capital Work-in-Progress which was at Rs.668.85 crores in FY 2002-03 has increased to Rs.2151.50 crores
in FY 2006-07. The net increase of Rs.1482.65 crores represents at 221.67%. It shows that huge amount of fixed
assets has been lying in the Capital Work-in-Progress. It means that many of the projects are under the stage of
construction, renovations and modernizations. The projects should be completed as much as possible and the
amount should be converted into fixed assets so that the depreciation benefits can be availed. If the work-in-
progress is not completed in time, it will lead to time and cost over runs, wear and tear etc. the total respondents
have stated that the fixed assets are not properly utilized. And many replies received in writing from the various
respondents which are narrated. Stating that a lot of old scrap materials which are lying in project sites should be
disposed off immediately and old plants to be modernized to increase the efficiency. The Fixed Assets Turnover
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Ratio which was at 0.81:1 in FY 2002-03 has reduced to 0.68:1 in FY 2006-07. The frequency of verification
and system of reconciliation of physical balance with book balance needs to be improved keeping in view the
volume and value of fixed assets. Therefore the corporation has to give more attention on proper and effective
utilization of power plants. Increase the Plant Load Factor of Thermal, Hydel and Wind power plants. And focus
on optimum utilization of finance. And it has to put rigorous efforts to increase the productivity of human
resource.

9.3 Current Assets:

The current ratio which was at 3.19:1 in FY 2002-03 has increased to 5.09:1 in FY 2004-05 and again increased
to high at 8.32:1 in FY 2005-06. However in the next FY 2006-07, it has been maintained at 3.72:1. Therefore
29% of the respondents have said that the current assets have not been sufficient for utilization. Therefore the
huge amount has been blocked in the sundry debtors (KPTCL and ESCOMs), inventories, loans and advances
etc., Therefore it should focus on the current assets especially at RTPS.

9.4 Inventories:
The respondents have told that the current assets and inventories are sufficient for utilization. Refereeing to
current ratio, the corporation has to avoid excess holdings of current assets. An action has to be taken to reduce
the overall inventory level by exercising control before new purchases. Strict control has to be exercised on
overall purchases by constituting purchase committee. It has to be identified of non-moving, slow moving and
obsolete items of inventory at all projects and dispose it off through auctions. Physical verification of inventory
by applying ABC Analysis to be done and regular and perpetual inventory programme has to be drawn up.
Enforcement of strict vigilance on each item of expenses by way of issuing circulars and discussions should be
held during monthly review meetings. Therefore it should place additional control system in the corporation at
all power plants.

9.5 Sundry Debtors:

Debtors Turnover ratio which was at 1.99:1 in FY 2002-03 has come down to 1.32:1 in FY 2006-07 and
correspondingly average collocation period is increased from 183 days in FY 2002-03 to 276 days in FY 2006-
7. The more and more attention has to be kept on debtor’s management. Because the entire generated electricity
is sold to five public sector distribution companies in the State. And realization of bills is becoming very
difficult to the organization. Therefore the management should accelerate recovery actions with the government
support. 70% of the respondents have said that there is an increase in working capital due to huge amount of
funds is blocked in receivables. It has suggested that the securitization of receivables from KPTCL and
ESCOMs to be done or 100% payment of current monthly bills to be ensured. KPCL is selling power based on
Power Purchase Agreements. The Tariff has not been increased for the last ten years to the KPCL. The KPTCL
and ESCOMS are approaching KERC every year and requested to enhance their tariffs. But it has not happed
on the KPCL end. Therefore rationalization of tariffs on the generation side has to be done.
In respect of Profit and Loss Accounts, to increase the miscellaneous income, the KPCL has to take initiative
in trading of power; project consultancy etc., nearly 63% of respondents says that there is a possibility for
diversifications in business activities of the corporation. It has 6237 employee work force with vast amount of
experience and skill sets in the power project management. Therefore it should endeavor to exploit the man
power in the productive activities and try to control the major expenditure items such as:
1. Consumption of Coal and Fuel: It represents 52.27% of total turnover in FY 2002-03 has reduced
further reduced to 47.72% of total turnover in FY 2006-07. This is the major component which
contributing from the operation of RTPS. The corporation should exploit other type of energy sources
and endeavor to generate low cost of power from Hydel, wind and biomass if any. RTPS should be
kept for base load as much as possible to mitigate the high cost of power generation and to improve the
profitability. Nearly 64% of respondents have told that there is a possibility of reducing coal and fuel
cost in the power plants. Therefore the corporation has to endeavor to bring down the same.
2. Administrative and Other Expenses: It accounts 24.14% of total turnover and 26.78% of total
expenditures in the FY 2006-07. it is highest over the previous five years because there were bad debts
written off, donation of assets, pension, gratuity, VRS etc., The 64.50% of the total respondents have
told that there is a possibilities of reducing the administrative and other expenses. The corporation
should also give focus on reducing the same.
3. Financial Charges: It represents 10.22% of total turnover and 11.32% of total expenditure
respectively in FY 2006-07. Nearly 41% of the total respondents have told that there is a possibility to
reduce the financial charges. Therefore the corporation has to give more attention to reduce financial
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charges, by way of swapping of high cost borrowings, financial engineering. It should raise funds
whichever is low cost and off-load which is high cost. It should prune down the unnecessary expenses
on inventories, working capital management, delayed period payment on borrowings etc.,
4. Depreciation: It is the non-cash expenses, which work out to 9 to 10 percent of the total turnover. It is
accounted as per the rates specified in the Electricity Supply Act 1948 but not as per the Electricity Act
2003. The debate is still going on whether depreciation has to be accounted based on the old Act or
new Act. It has to ensure that what are the consequences thereby especially on the old power projects.
The clear framework has to be placed in the corporation after studying the various provisions of The
Companies Act, 1956, The Income Tax 1961 and The Electricity Act 2003.

The Debt equity ratio, Earning Per Share, Debt Service Coverage ratio and current ratio are to be maintained
at optimum level. It should put pressure on ESCOMs with necessary government support. It should increase the
other income or miscellaneous from non-core activities. It should try to reduce the coal and fuel cost,
administrative and financial charges. It should nurture the human resources so that talented pool can be retained.
In a nutshell, on reviewing overall observation of the operational and financial parameters of performance, the
corporation has to try to utilize full capacity of the power plants by increasing PLF and try to reduce the
auxiliary consumption. The procedure of physical verification of inventory followed by management needs to
be strengthened in relation to the size of the corporation and nature of the business. The corporation needs to be
strengthened the internal control system to make them commensurate with the size of the corporation and nature
of its business for purchase of fixed assets, inventory, sale of energy including execution of works contracts and
accounting of coal. The corporation has to create debenture redemption reserves. As required under section
117(C) of the Companies Act, 1956. Capital work-in-progress should be finish it off early and depreciation
should be claimed thereof. Equity capital should be raised for funding of new projects. It should put efforts to
increase Return On Capital Employed (ROCE), since it is making reasonable profits, it should make dividend
payments to the shareholders (increase dividend pay-out ratio).

10. Inter-firm Comparison Study in the Power Sector

For the comparison study, it was carried out only for one financial year 2004-05. However, it may be construed
that there would not be much difference on year to year except in the abnormal cases. Especially in the power
generation companies, the financial performance would be on steady growth or maintenance from year to year.
This study brings out quite interesting results of the power generation companies of India. The following
observations were arrived at. In terms of size, the NTPC Limited is the number one in the highest installed
capacity of 23,435 MW with a generation of 1,58,271 MU. Secondly the Andhra Pradesh Power Generation
Corporation limited with installed capacities of 6,555 MW with generation of 28,720 MU. And thirdly, the
KPCL stands at 4,640 MW with a generation of 18993 MU during the year. On comparison of book value of the
equity shares, it is maintained at the highest value in the private sector companies. First of all it is the highest of
Rs. 342 per share in Reliance Energy Limited which is at face value of Rs. 10 per share. Secondly in the TATA
Power Company Limited at Rs. 260 per share of face value of Rs. 10 each. Thirdly the public sector
undertaking, the NTPC Limited is maintaining at high of Rs. 51 per share of face value of Rs. 10 each. And in
the fourth position, KPCL would come at Rs. 3413 per share of face value of Rs. 1000 each. Fifth is of NHPC
Ltd at Rs. 1464 per share of face value of Rs. 1000 each. The AndraPradesh Power Generation Corporation
Limited (APGENCO) is yet to take its shape which suffering with debt burden (Table-4).
EPS is also highest in the Reliance Energy Limited and at the Tata power company Limited which are
maintained at Rs. 28 per share respectively. Whereas the return on equity is highest in the NTPC Limited at 14%
secondly it comes to KPCL and Tata Power Company at 11% respectively. The debt equity ratio is quite low in
the NPTC compared to all other companies. And on the dividend pay-out ratio it is highest level of 34.08% at
NTPC Limited and secondly at The Tata Power Company Limited which at 26.86%. That means these two
companies paying more dividends to the shareholders when the profit is earned. On review of overall efficiency
rating of selected companies, the TATA Power Company stands first, NTPC Limited at second position,
Reliance Energy Limited at third, NHPC at fourth, KPCL at fifth and APGENCO stands at sixth position.

Table 4: Inter-firm Comparison Statement

Particulars KPCL APGE NCO NTPC NHPC REL Tata Power
Book Value Per Share (Rs.) 3413 100 51 1464 342 260
Face Value per share (Rs.) 1000 100 10 1000 10 10
Earning Per Share(EPS) 361 2 7 73 28 28

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Return on Equity (%) 11 2 14 5 8 11

Dividend Per Share (Rs.) 20 0 2 15 5 7
Debt Equity Ratio 1.72 4.72 0.41 0.53 0.65 0.63
Dividend -Payout Ratio (%) 5.54 0.00 34.08 20.47 16.73 26.86
Source: Excerpts of Analysis from Annual Reports of the Companies for FY 2004-05

11. Management Practice

The corporation has adopted professionalism in the management practice to meet the challenges of a
competitive scenario in the power sector. It has cost consciousness and transparency in the day to day
transactions. It is consistently maintaining time and cost element in project execution benchmarking with the
best in India and abroad. The financial and commercial systems to ensure fair play for stakeholders like vendors,
contractors and lenders. It is focusing on importance for obtaining lawful consents, permits and clearances in the
activities. Contractors, suppliers and other business associates are expected to comply with relevant legal
requirements for smooth running of business. Unnecessary wastages are eliminated and savings are obtained
through a professional approach inn design, execution and operation and maintenance of power projects. It is
consistently upgrading the knowledge and skills of employees through conducting continuous in-house training
programmes. The Corporation, as a public authority, has taken steps towards the compliance of the Right to
Information Act 2005. The Corporation has created separate task forces to take up research and development
activities in order to optimize generation from the existing power plants thorough improvements and also to
adopt new technology for higher efficiencies in operation and maintenance of power plants. Some other areas
where newer technologies have been adopted like Renovation and modernization of existing power plants are
contemplated on a continuous basis. The level monitoring to Talakalale Dam with GSM based technology has
been implemented for optimum usage of water resources. Condition monitoring of generator transformers
healthiness has been initiated which will decrease the failure rate.

12. Potential for Power Projects in Karnataka

State is already suffering from low-tax buoyancy, as measured by the tax to SDP ratio. Buoyancy has dipped
during the high growth decade of the 90's as against the 1.1 per cent during the medium growth of 80's. This is
entirely due to the State's failure to increase power capacity. This low growth rate was mostly on account of a
flight of capital from the manufacturing sector into neighboring States such as Andhra Pradesh and Tamil Nadu
where the Government has augmented capacity through private sector participation. Considering the growing
need for power, GoK has entrusted KPCL with the development of new thermal power projects and Hydel
projects totaling to 7500 MWs. Governments of Karnataka vide GO No. EN 76 PPC 2006 dated 13.7.2006 has
allotted six new coal based thermal plants to KPCL. Out of six, two power projects have been entrusted to
KPTCL. The Government should make attempts to promote expeditiously the coal-based power projects. This,
in turn, would have a beneficial impact on the growth of the State domestic product (SDP). The State
Government's move to add capacity through liquefied natural gas or liquid fuel gas route was also not in the
long-term interests because of the cost implications, unstable oil price at international market and turmoil in the
Middle East countries. Thereby the per-unit tariff could be at Rs 6 a unit, more expensive than captive
generation costs and may also lead to the bad experience of as Dhabol power project in Maharasthra. As per the
programme of Government of India, one Ultra Mega power project is sanctioned to the State to set up in coastal
Karnataka. However, due to resistance from environmentalist, it is unable to launch.
India has estimated 45,000 MW of wind energy potential assuming 1% of land availability for wind energy
potential identified by the Ministry of Non-Conventional Energy Sources (MNES). Karnataka is bestowed with
good renewable energy potential of about 10,650 MW, which includes 7,500 MW of wind energy. The technical
potential has been estimated at 13,390 MW assuming 20% grid connections. At present, Karnataka has 266
MW installed capacity in 252 projects throughout Karnataka. There is need for greater momentum and rapid
increase in volumes in the wind power capacity in the state. The potential site for the wind power projects
identified are:1) Kappatagudda (Dharwad), 2) Jogimatti (Chitradurga) 3) Gokak (Belgaum District) 4) Malagatti
Hanumasagar Raichur District) and 5) Bommanahalli Hanumanamatti (Dharwad District). Among all the
districts in the Karnataka, Chitradurga district is found to the best and is at its forefront in development of wind
power. With the pace of development going in this district it appears that the entire power requirement of the
district could be met from wind energy alone. Due to advancement of wind turbine technology, there has been
upward trend for the optimization of space and energy, which is the new mantra in wind power development
today. There are different categories of high wind turbine ratings in recently installed that the Indian companies
vying with their foreign collaborators in catching unit ratings. The fiscal benefits or incentives to the promoters

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yield high rates of return on capital investments in the wind and thermal power projects. If the Karnataka
government wants the state to be the most favoured destination of private promoters, it should swiftly remove
bottlenecks from the power sector, and implement the infrastructure projects without any time slippage. The
differential tariff which will be determined on a cost of serving power to a particular category of consumer or
area, plus profit has got a lot of positives. Mainly to drive efficiencies in distribution companies through stake
holders and to drive down the cross subsidy level. The cost of serve is constituted of direct and indirect costs
incurred to the electricity supply companies.

13. Impact of Electricity Act 2003 on the Power Sector

The power sector falls in the Concurrent List under Entry 38, List III of the Seventh Schedule read with Article
246(2) of the Constitution of India, 1950 and thus, both Union and States of India have jurisdiction over this
sector. Hence, the State Legislature has full power to legislate regarding the power sector, subject to the
provision that the State enactment does not conflict with any Central enactment. Without the globalization
during early 90s, this Act would have not been erupted at all. The Act is moving and forced towards creating a
market-based regime in the Indian power sector and consolidates the laws relating to generation, transmission,
distribution, trading and use of electricity. It generally takes measures to develop the electricity industry, thereby
promoting competition, protecting interests of consumers and supply of electricity to all areas. It also takes care
of rationalization of electricity tariff ensuring transparent policies regarding subsidies and promotion of
environmentally friendly policies. The provisions in the Act will finally change the present Single-Buyer
model; to Multi-Buyer model. There would be several players operating at all the different stages of the power
industry: generation, transmission and distribution. Open access to transmission and distribution system will
create market for power. This will provide tremendous potential for investment in all the segments resulting in
strengthening infrastructure which is critical for the Indian power sector.

On Generation: The Act will permit free entry into generation thereby de-licensing the generation. However,
hydroelectric power projects will require usual clearances from CEA (Sec.7), Environment ministry and state
governments. Any generating company may establish, operate and maintain a generating station and have grid
connectivity it is complied with technical standards laid by CEA. The IPPs can have access to transmission lines
without any discrimination or can construct their dedicated lines and have complete commercial autonomy to
sell its power to any entity. The Ministry of Power of Government of India has estimated that the additional
capacity requirement to meet the growing demand at CAGR at 8% requires about 10,000 MW every year which
translates into US $10 billion per annum. The open access mechanism may lead to declining electricity prices in
line with the international experiences. For example, electricity prices, in UK alone have fallen by over 30%
over the last decade and similar trends have been observed in USA and European countries (Haldea, 2003). The
Electricity Act 2003 should have some provision for exemption of statutory duties on Captive Generation in
Remote and inaccessible un-electrified villages to encourage owners of such facilities. Provision should also be
kept in the act for Stand Alone System of Generation and local Distribution in Rural Areas by allowing owners
of Electric Power Producers to have own Generation Systems and also own consumers. The mode of generation
of Power could be by Fuel, Small Hamlets or waterfalls or other Non-Conventional Energy Sources. Broad
consensus amongst the delegates was that a National Policy on Electrification and local Distribution in Rural
Areas has also to be evolved and spelt out as per the Act.

14. Findings and Conclusions

Electricity industry has worked for over 50 years with a set of framework of regulation Excessive government
involvement has had its effect. Now the industry needs to be reformed and restructured to achieve technical,
commercial and financial soundness, growth; competition and efficiency have to be secured to take care of
larger interest of consumers. Over the past decade new financing and advanced technology along with
privatization and liberalization process, Reforms have shown dramatic growth in telecommunications but not in
power sector owning to its own peculiarity such as huge investment with long gestation period, shortage of
energy resources, socio-economic issues etc. The Karnataka has to create additional installed capacity at least at
4500 MW for the period of 2 to 3 years. It requires nearly 18,000 crores. It may arrange finance, but the coal
availability for thermal projects is very difficulty in the near future. Country is already facing acute shortage of
coal to all the thermal power plants. Hence the Karnataka has to promote or put more emphasis on renewable
energy sources for short term and hydal power projects for the long term planning. To utilize indigenous
technology in wind turbine project available with National Aerospace Laboratories Limited so that 50% cost
reduction can be achieved. Implement advanced technologies of IT tools, better feeder/energy management
techniques in the system so that it can be made sustainable and a profitable center. Apart from power generation
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initiatives, it has to tackle down on energy saving mechanisms, bring down the T&D Loses at distribution
channel s and proper billing improves collections.
Due to onset of the Electricity Act 2003, there are huge opportunities opened up for the efficient players.
Government of India and many State governments wants infuse competition in this sector. However due to its
own inherent bottlenecks, like large amount of capital requirements, leakage in Transmission and Distribution
losses, poor recovery in agriculture sector, the sector could not move forward to the expected level. If the
effective management tools are implemented, the plugging of loop holes is possible. A central policy goal in the
filed of electricity is that of shifting to a competitive market framework, where electricity is bought and sold
across an ecosystem of producers, consumers and intermediaries. This framework emphasizes choices by
consumers, and competition being infused amongst producers. Under this framework, patterns of energy
conservation, and time -of-day characteristics of consumption would be shaped by price-based incentives. The
mechanism of the availability based tariffs (ABT) for spot market has also been implemented in the corporation.
Hence the corporation has to make use of the opportunities and challenges which were opened up by the
Electricity Act 2003. It may be noted here that the recent Global Investors Meet held in June 2010 in the state
has attracted power projects to an extent of 12000 MW capacities which is based on thermal and gas based
energy resources. However, the yields of fruits are yet to come up.
Note that the financial measures alone not sufficient to guide and gauge the performance in creating value to
the organization; they depend on non-financial measures like customer satisfaction, internal business processes
for performance improvement, innovation, skills and learning attitudes of the employees etc., The corporation
should implement modern management tools such as Economic Value Added and Balance Scorecard.
Respondents have said that the corporation should set up a separate risk management committee to evaluate the
risk exposure and report to the management from time to time. And it should set benchmark of international
standard and perform on par with NTPC, Reliance Energy Limited and the TATA Power Company limited so
that the consumers and stakeholders will be benefited at large ultimately. Since the power sector especially
electricity generating companies are contributing much of the carbon dioxide, the corporation should take
effective measures in the protection of environment. Because the concern on global warming is hot up across the
globe. Most of the developed countries are pointing towards the developing countries and pressuring to mitigate
the global warming.
In a nutshell, the findings and results on the operational parameters and financial performance say inter-alia
that the Cost-effective generation could be achieved through investment in the most efficient options. Through
improved utilization of existing power plants by optimization of Plant Load Factor (PLF), through planning for
the seasonally optimum utilization of thermal, wind farm and hydel stations through efficient evacuation of
electricity. The strategy of financial engineering could be improved by way of debt swaps, optimum utilization
of equity, reserves and surplus, effective utilization of fixed, current assets and manpower. Try to reduce the
consumption of coal and oil, administrative expenses, financial charges etc., to put more focus on sundry
debtors’ management and tariff rationalization. It is suggested to go to capital market borrowings for financial
needs, use motivating tools and productivity enhancement techniques in manpower management, outsourcing of
non-core activities and try to embark upon modern systems and advanced technologies in the power generation
sector. The study suggested several ways and means inter-alia to implement methods of Economic Value
Added, Balance Scorecard, Risk Management tools etc. The research findings and various suggestions have
been discussed at micro level in this research paper which is relevant to other States too.

15. Scope for Further Research

The author is of the view that there is a scope for further in-depth studies in the power sector especially in
transmission, distribution and retail supply segments. After the reform process and enactment of the Electricity
Act 2003, not many studies have come up in the power sector. Therefore, the further study can be taken to
assess the advanced impact of LPG, global crisis. Approach of reform and deregulation process of USA, UK,
Chile model and other developed and developing countries have gained momentum and such benchmarks to be
compared with India in the power sector.

16. References
1. Annual Reports of Karnataka Power Transmission Corporation Limited for FY 2003-04.
2. Annual Reports of Karnataka Power Corporation Limited for FY 2002-03 to FY 2006-07.
3. Annual Reports for FY 2004-05 of NTPC Limited, Reliance Energy Limited, the TATA Power
Company Limited, National Hydroelectric Corporation Limited, Andhra Pradesh Power Generation
Corporation Limited.
4. [Link] [Link], [Link], [Link], last accessed on 12.01.2008.
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5. Haldea G, (2003), Access Bijli – ‘How to electrify our power sector’ Times of India, June 5, 2003,
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6. Pandey K.P, Chairman, Karnataka Electricity Regulatory Commission (KERC), quoted in The Hindu,
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7. Sally Hunt and Graham Shuttle worth (1996), “Competition and Choice in Electricity” National
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research article published in “Economic and Political Weekly”, April 6, 1991, Pp. 891-910 and
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Industry: An International Survey”, The Journal of Energy Literature, Vol. III, 2, 1997. The Oxford
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Model”, Journal of Indian Business Research, Emerald Group publishing Ltd, UK, Vol.2, Issue 2,
2010, Pp.82-91.

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28. Shahi R.V (2005), He was the Secretary, Ministry of Power, Govt. of India, “Indian Power Sector -
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