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Summer Internship Project on Maharashtra Electricity Board

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Summer Internship Project on Maharashtra Electricity Board Powered By Docstoc
					        PRESENTATION
              ON
      CAPITAL BUDGETING
              OF

MAHARASHTRA STATE ELECTRICITY
       TRANSMISSION
      COMPANY LIMITED
          ( MSETCL )
  )
COMPANY STRUCTURE

      MSEB HOLDING
         CO. LTD.
        COMPANY PROFILE
 MSETCL is a state government electricity company.

 MSETCL as the State Transmission Utility (STU) of
 Maharashtra, is responsible for building and
 maintaining the Power Transmission Network for
 the State.

 M.S.E.T.C.L. ensures compliance with statutory
 requirements along with norms and procedures laid
 down by the Board & State Government.
       CAPITAL BUDETING
• Capital budgeting (or investment appraisal) is
  the planning process used to determine whether
  a firm's long term investments such as new
  machinery, replacement machinery, new plants,
  new products, and research development
  projects are worth pursuing. It is budget for
  major capital, or investment, expenditures.
 Procedure of Capital Budgeting
           in MSETCL
1. Five year plan covering physical targets and
   financial targets.
2. In Member Board meeting resolution is passed to
   approve the scheme.
    CAPEX SECTION       FTU SECTION        LOAN DEPT.


3. Chief Engineer communicates all with a copy to
   Budget Section, physical plan Revised Estimate and
   Budget Expenditure to provide their Financial
   Budget.
            SCOPE OF WORK

 Annual Performance Review of Scheme.

 Zone STU Plan.

 Reconciliation of CB2 file.

 Analysis of line Extension Scheme.

 Monthly Information System of CB2 file.
         FACTS & FINDINGS
1. Huge gap in the demand for power and its supply
   in Maharashtra.

2. Redundancy in transformer capacity and line.

3. Transmission Open Access.

4. Improvement in overall availability, and efficiency
   of transmission system.
         RECOMMENDATION
 Reduce MSETCL technical and non-technical losses.

 Reinforce transmission systems by financing
  equipment, materials, and plants, for expanding or
  constructing sub-stations.

 Provide technical assistance in the areas of reform
  project management.
               CONCLUSIONS

 Raising the resources from the Markets.

 Major concern for the company is its sensitivity to
  Roe.
THANK YOU