Corporate level strategy pursued by the company

NTPC
Mission
Develop and provide reliable power, related products and services at competitive prices,
integrating multiple energy sources with innovative and eco-friendly technologies and contribute
to society.
Vision
To be the worlds largest and best power producer, powering Indias growth.
Subsidiaries of NTPC
1.NTPC Electric Supply Company Ltd. (NESCL)
The company was formed on August 21, 2002. It is a wholly owned subsidiary company of
NTPC with the objective of making a foray into the business of distribution and supply of
electrical power, as a sequel to reforms initiated in the power sector. The company was also
mandated to take up consultancy and other assignments in the area of Electrical Distribution
Management System.
Its maiden entry into power distribution was by forming a 50:50 JV company KINESCO Power
and Utility Private Ltd. with Kerala Industrial Infrastructure Development Corporation
(KINFRA). It is already distributing power in KINFRA owned industrial theme parks.
With the objective of sectoral support in the area of distribution, NESCL has been assigned the
responsibility of implementing rural electrification works under the Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY).

2.NTPC Vidyut Vyapar Nigam Ltd. (NVVN)

NTPC Vidyut Vyapar Nigam Ltd. (NVVN) was formed by NTPC Ltd, as its wholly owned
subsidiary to tap the potential of power trading in the country thereby promoting optimum
capacity utilization of generation and transmission assets in the country and to act as a catalyst in
the development of a vibrant electricity market in India. The company holds the highest category
I trading license from CERC.

The Government of India has designated the company as the nodal agency for Phase I of the
Jawaharlal Nehru National Solar Mission (JNNSM) with a mandate for purchase of power from
Solar Power Projects connected to grid at 33 KV and above and for sale of such power bundled
with the power sourced from NTPC Coal Power Stations to distribution utilities under Phase I
(2010-2013) of JNNSM, which envisages setting up of 1000 MW solar capacity.
The Company has been designated as the nodal agency for cross-border trading with Bhutan and
Bangladesh and has entered into an agreement with Bangladesh (BPDB) for supply of 250 MW
power for 25 years from various central generating stations of NTPC.
The Company is also engaged in ash business involving sale of Fly Ash and Cenosphere from
various coal power stations of NTPC.

3. Kanti Bijlee Utpadan Nigam Limited, (formerly known as Vaishali Power Generating
Company Limited)
To take over the Muzaffarpur Thermal Power Station (2*110MW), a subsidiary company named
Vaishali Power Generating Company Limited (VPGCL) was incorporated on September 6,
2006 with NTPC contributing 51% of equity and the balance equity was contributed by the Bihar
State Electricity Board. The company was rechristened as Kanti Bijlee Utpadan Nigam Limited
on April 10, 2008. Present equity holding is NTPC 64.57% & BSEB 35.43%. The company is
upgrading the existing unit and establishing new plant.

4. Bharatiya Rail Bijlee Company Limited (BRBCL)

A subsidiary of NTPC under the name of Bharatiya Rail Bijlee Company Limited was
incorporated on November 22, 2007 with 74:26 equity contribution from NTPC and Ministry of
Railways, Govt. of India respectively for setting up of four units of 250 MW each of coal based
power plant at Nabinagar, Bihar. Investment approval of the project was accorded in January,
2008. 90% power from this project is to be supplied to Railways to meet the traction and nontraction power requirements.

CORPORATE OBJECTIVES

Business portfolio growth

To further consolidate NTPCs position as the leading thermal power generation company in
India and establish a presence in hydro power segment
Customer Focus
To expand the relationship with existing customers by offering a bouquet of services in addition
to supply of power e.g. trading, energy consulting, distribution consulting, management
practices
Agile Corporation
To develop a learning organisation having knowledge-based competitive edge in current and
future businesses.
Performance Leadership
To operate & maintain NTPC stations at par with the best-run utilities in the world with respect
to availability, reliability, efficiency, productivity and costs
Research and Development
To carry out research and development of breakthrough techniques in power plant construction
and operation that can lead to more efficient, reliable and environment friendly operation of
power plants in the country
Sustainable Power Development
To lead the sector in the areas of resettlement and rehabilitation and environment protection
including effective ash-utilisation, peripheral development and energy conservation practices

NTPC is focusing on backward integration by acquiring and developing coal mines It aims to
reduce its dependence on coal, from around 85 per cent at present to 56 per cent by 2017
Seven NTPC thermal power stations figure among the top 10 stations in the country in terms of
plant load factor NTPC is using a multi-pronged strategy
NTPC has also ventured into coal mining. However, out of eight blocks allocated to NTPC by
the coal ministry, five have been deallocated on charges that it is not serious about developing
them.

Coal India Limited

MISSION
The Mission of Coal India is to produce & market planned quantity of coal & coal products
efficiently & economically with due regards to safety, conservation
& quality
VISION
The Vision of Coal India is to emerge as a global player in the primary energy sector committed
to provide energy security to the country by attaining environmentally and socially sustainable
growth through best practices from mine to market.

Subsidiaries
There are seven subsidiaries of Coal India .
Coal India produces coal through seven of its wholly owned subsidiaries .
CMPDIL carries out the exploration activities for other subsidiaries. CMPDIL also provides
technical and consulting services to it and to third party clients for coal exploration, mining,
processing and related activities

Bharat Coking Coal Limited- Dhanbad Jharkhand.

Central Coalfields Limited- Ranchi Jharkhand

Eastern Coalfields Limited- Burdwan - West Bengal.

Mahanadi Coalfields Limited- Sambalpur - Odisha.

Western Coalfields Limited-Nagpur - Maharashtra

South Eastern Coalfields Limited--Bilaspur Chhattisgarh.

Central Mine, Planing & Design Institute Limited (CMPDIL)

Strategy Used by Coal India

Coal India limited is adopting stability strategy as it has over capacity and is unwilling to take
risk and slowness to change. Present situation of coal is that CIL cannot stock any more coal and
is struggling to see how it can sell more coal quickly in order to liquidate the unsold pithead
stock of 40 million tonnes. CIL can exchange coal with NTPC for power generation
Coal India strategy has changed from aggressive which was due to jump in dry fuels (2010-2011)
to defensive (2015-16)
Advantages

A stability strategy is less risky. Unless the conditions are really bad, a firm need not take
any additional risks.

The management doesnt foresee any change in the environment or opportunity in the
market or any threat by JV with NTPC

When pursuing this strategy, there will be no disruption in routine work of Coal India.

Recommendation
State-owned power producer NTPC Ltd and mining giant Coal India Ltd (CIL) formed
a joint venture that will set up two urea factories on the premises of ailing Fertilizer
Corp. of India Ltd (FCIL) to help in its revival .The revitalization of the plant would
help generate 1.27 million tonnes of urea along with associated chemicals.h
Merger would be profitable for both Coal India and NTPC as well as for the
government.
Government intervention should be reduced so they can operate efficiently and
productivity could be increased