Contract Procurement Management Report Ntpc 100303221505 Phpapp01

7/21/2019 Contract Procurement Management Report Ntpc 100303221505 Phpapp01

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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL

BUSINESS

CONTRACT &

PROCUREMENT

MANAGEMENT AT NTPC

SUBMITTED BY:

Madan NagarMBA-IB!""#-!""$%

R'' N( : A)!""*"$E+,

INDUSTRY GUIDE FACULTY GUIDE

S( D.n/0 Ba1g1na M0( Sa1ra2 Ra.na

S/n.r Manag/rF.nan3/% F.nan3/ Fa31'45

NTPC N.da

AMITY INTERNATIONAL BUSINESS SCHOOL6

NOIDA

AMITY UNI7ERSITY 8 UTTAR PRADESH


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C9an5 C/r4.;.3a4/

In 4/ LETTER HEAD ; 4/ C9an5%

TO WHOM IT MAY CONCERN

This is to certify that _____________________, a student of Amity

International Business School, Noida, undertook a project on___________________ at ________________________

from __________to _____________.

s.!r.________________ has successfully completed the project under the

"uidance of r.!s.____________________. She!#e is a sincere and hard$

%orkin" student %ith pleasant manners.

&e %ish all success in her!him future endea'ours.

S.gna41r/


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CERTIFICATE OF ORIGIN

This is to certify that r. adan Na"ar, a student of (ost )raduate *e"ree in MBA-

IB !""#-!""$%6Amity International Business School, Noida has %orked in the

NT(+$Noida, under the ale "uidance and super'ision of r.*inesh Bahu"una,

desi"nation- Senior ana"er /inance0, +ompany- NT(+, Noida.

The period for %hich he %as on trainin" %as for ei"ht %eeks, startin" from 1 thay

2334 to 53th6uly 2334. This Summer Internship report has the re7uisite standard for

the partial fulfillment the (ost )raduate *e"ree in International Business. To the

est of our, kno%led"e no part of this report has een reproduced from any otherreport and the contents are ased on ori"inal research.

S.gna41r/ S.gna41r/

Fa31'45 G1.d/% S41d/n4%

iii


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AC=NOWLEDGEMENT

I am thankful to Amity International Business School, for "i'in" me an

opportunity to %ork %ith a presti"ious or"ani8ation like National

Thermal (o%er +orporation NT(+0. The e9perience has een hi"hly

educati'e in terms of oth theoretical and practical kno%led"e in the area

of /inance. The summer stinct at NT(+ has stron"ly added 'alue to my

learnin" cur'e.

I e9press my sincere "ratitude to my industry "uide r. *ineshBahu"una, *esi"nation- Senior ana"er /inance0, +ompany- NT(+,

Noida, for his ale "uidance, continuous support and cooperation

throu"hout my project, %ithout %hich the present %ork %ould not ha'e

een possile.

I %ould also like to thank the entire team of NT(+ especially r. :

:asu, *) /0, r. AA Sheikh, *) /0, r. ;S Sodhi, * /0 and

r. :ishal )ar", for the constant support and help in the successful

completion of my project.

I am thankful to my faculty "uide s.Saurah ;aina, of my institute, for

her continued "uidance and in'aluale encoura"ement. Also, I am

thankful to my (rof. r. Ajeet ittal, for his 'aluale "uidance and

support durin" the project.

S.gna41r/

S41d/n4%

i'


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TABLE OF CONTENTS

Ca4/r N( S1>?/34 Pag/ N(

+h.$>>>.

>>>>>>>

>>>>>..

>>>>.

>>>>>>>.

+h.$5.3 +ritical ;e'ie% of iterature>>>..

+h.$1.3 +ompany (rofile >>>>>>>>.

1.< Industry (rofile>>>>>>..

1.2 S%ot Analysis>>>>>>>.

[email protected] *ata>>>>>>>>>>>>>..

@.< +ollection>>>>>>>>>

@.2 (rimary *ata

@.5 Secondary *ata>.>>>>>..

+h.$4.3 /indin"s Analysis>>>>>>>.

+h.$C.3 ;ecommendations>>>>>>>>

+h.$D.3 Bilio"raphy>>>>>>>>>>.

+h.$E.3 Anne9ure>>>>>>>>>>>..

E.< Tales>>>>>>>>>>.

E.2 )raphs>>>>>>>>>>

+h$>>>>>>>....>...

+h$>>>>..

'


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E@ECUTI7E SUMMARY

The report entitled BIDDING AND FINANCIAL ANALYASIS OF N(T(P(C( is aout the

purchase practices follo%ed at NT(+. These practices are follo%ed durin" all procurement y

NT(+. The purchase procedure starts at Indentin" y the department that re7uires the material and

"oes to the cost department and finance department for re7uired appro'al. In et%een 'arious

acti'ities like i7uidated *ama"es calculation, Spare (arts procurement terms, )uarantee in

iaility *efect period etc are undertaken. ?nce all the terms and conditions are formulated and

appro'ed, the tender document preparation starts. The tender documents are issued to the

prospecti'e idder for a cost that starts from ;s 233 to ;s 5333. The content of the tender

document is prepared in such a manner that the prospecti'e idder comes to kno% aout all the

important details aout the contract. The issuance of tender document is follo%ed y the receipt of

Bids from 'arious 'endors in the specified format. ?nce all the ids are recei'ed, they are opened

in presence of some nominated officials from /inance, +ontracts and aterials department. The

representati'es from the idders may also e present. Then a comparati'e statement of the 7uoted

ids is prepared and the contract is a%arded to the lo%est 7uotin" idder.

*urin" the document preparation phase, payments terms are also decided and documented in the

)eneral +ondition of +ontract, %hich is issued to the idder %ith the tender documents. Apart

from payments, there are 'arious other issues like Aritration, %hich are dealt in the tender

documents. i7uidated *ama"es is one of the 'ery important clauses. i7uidated dama"e is a

payment to e made y the contractor in case he fails to complete the project in the stipulated

time. In case of e7uipment, it is related to the performance of the e7uipment. The purchase is

follo%ed y the e'aluation, %hich is done for t%o thin"s, the 'endorFs performance and the

purchase performance. The :endor e'aluation comes in handy for placin" future orders %here as

the (urchase (erformance e'aluation pro'ides detailed insi"ht into the procedures ein" follo%ed

to procure the re7uired material.

'i


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RESEARCH METHODOLOGY

(rimary ?jecti'e -$ The ojecti'e is to study the BIDDING AND FINANCIAL ANALYASIS

OF N(T(P(C( procedures follo%ed at NT(+ .

The oser'ations %ere carefully analy8ed and some constructi'e facts and fi"ures %ere re'ealed.

?n the asis of those oser'ations some recommendations and su""estions for NT(+ ha'e een

drafted.

The research methodolo"y comprised of secondary data collected from 'arious NTPC r/3rd0

and 4r1g NTPC 0.4/ and Ind.a In;'.n/(39(

Sample *esi"n-$for the research acti'ity to turnout into a success, a careful selection of 'arious

(roject %as made. All possile effort %as made to choose the uniased data to "et the fruitful

result.

Scope of the Study -$ This effort is to understand the procurement practices follo%ed at NT(+ and

understand %hat they keep in mind efore a%ardin" a particular id contract to the specific idder.

It %ill also recommend the points to NT(+ to impro'e upon to "et the ma9imum chunk in the

po%er industry.

imitations -$

Time factor.


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Ind104r5 Pr;.'/

The electricity ser'ices in India %ere "enerally pro'ided y the State =lectricity Boards S=Bs0,

as it %as elie'ed that ein" under the control of the State "o'ernments, they could protect the

consumer interests a"ainst e9ploitation. ?'er a period of time, it ho%e'er, came to e reali8ed that

ecause of their monolithic nature, the State =lectricity Boards suffered from operational

inefficiencies on account of %hich they had incurred hea'y losses. The ser'ices rendered y them

%ere also of poor 7uality. These factors forced the "o'ernments to think in terms of

commerciali8ation of the ser'ices so that the additional in'estments necessary for infrastructure

de'elopment ecome a'ailale throu"h pri'ate sector in'ol'ement and the ser'ices rendered

ecome "loally competiti'e.

+entral )o'ernment issued a policy resolution dated 22$


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oreo'er, the "ro%th rate of demand for po%er in de'elopin" countries is "enerally hi"her than

that of )*(. In India, the elasticity ratio %as 5.34 in < stplan, and peaked at @.


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de'elopment and hence %idenin" the "ap et%een the demand and supply of electricity. &e can

see the projected fi"ures for the comin" years in the dia"ram elo%-

POWER DE7ELOPMENT- )TH EPS PROECTIONS:

PEA= REUIRMENT IN BILLION UNITS-

78037 85132 115705

1574107

507 529 719 9760

200000

400000

600000

800000

1000000

1200000

1400000

16000001800000

M AR'0 1 M AR '0 2 M AR' 07 M AR' 12

YEARS

PEAKANDENERGYREQUIRMENT

T/ gr//n a0 ;''


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P//n a0 ;''


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There has een an impro'ement in last three years %ith


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NTPC- BAC=GROUND

NTPC8a global giant in power sector

S1r3/-www.ntpc.co.in

National Thermal (o%er +orporation imited NT(+0 is the lar"est thermal po%er "eneratin"

company of India. A pulic sector company incorporated in the year


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+orporation td. S(S+0. This 6: +ompany operates the capti'e po%er plants of *ur"apur


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NT(+Fs share on 5< ar 2331 in the total installed capacity of the country %as


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CORPORATE PLAN

The company has formulated a long term Corporate Plan for 15 years upto 2017. The

Corporate Plan seeks to integrate the Companys vision mission and strategies for gro!th

!ith the national plans and to provide the company the cutting edge in the emerging

competitive environment. "TPC is targeting to #ecome a $% 000 &' Plus company #y 2012.

(A) Projects under construction Total Capacity - 10990 MW

Project(State) Capacity

(MW)Fuel Commission Scedule

!indayacal - """(Madya Prades)

1000(2)500*

Coal +nit , - /e# 2007+nit , ug 2007

#ncaar """(#ttar Prades)

210(1)210*

Coal +nit , - ep 200%

$aal%aon Pase ""Sta%e " (&iar)

1000(2)500*

Coal +nit , "ov 200%+nit , - &ay 2007

$aal%aon Pase ""Sta%e "" (&iar)

500(1)500*

Coal +nit , -- &ar 2007

Sipat - "(Cattis%ar)

1340()%%0*

Coal +nit , - pr 2004+nit , -- /e# 2003+nit , --- 6ec 2003

Sipat - ""(Cattis%ar)

1000(2)500*

Coal +nit , - un 2007+nit , -- 6ec 2007

$oldam('imacal Prades)

400(2)$00*

8ydro +nit , - "ov 2004+nit , -- an 2004+nit , --- &ar 2003+nit , - pr 2003

&ar(&iar)

1340()%%0*

Coal +nit , - &ar 2003+nit , -- an 2110+nit , --- "ov 2010

&ilai p* Po+erProject,

! +it SA".(Cattis%ar)

500(2)250*

Coal +nit , - uly 2007+nit , -- 9ct 2007


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Total /90MW

(&) e+ projects 2ein% pursued 3or capacity addition 3or le4ent Plan and &eyond

-n addition to the a#ove a host of ne! po!er pro:ects as given #elo! are #eing pursued for

further capacity addition in the 11th plan and #eyond;

S* o* Project 5 State Capacity (MW)

1.

u:arat 100

2.

hanor >andhar = -- >u:arat 100

.

"a#inagar = !ith ?ail!ays @ihar 1000$.

Aoharinag Pala 8BP +ttaranchal %00

5.

Tapovan ishnugad 8BP +ttaranchal 520

%.

Aata Tapovan 8BP +ttaranchal 171

7.

"orth andhi CCPP=--


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A 6!7!"W

Projects o* o3 Projects

Commissioned

Capacity(MW)

TPC 6W8

C6A. 1 :0, ;/

Contract Procurement Management Report Ntpc 100303221505 Phpapp01

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