FMS Case - Tata Power Delhi Distribution - Automation Vs - ManPower
FMS Case - Tata Power Delhi Distribution - Automation Vs - ManPower
FMS Case - Tata Power Delhi Distribution - Automation Vs - ManPower
‘This is the magic of automation,’ said Sanjay Banga, Head-Power System Control &
Automation. ‘We had to go through a coal mine to get this shining diamond, SCADA.1 Apart
from increased reliability and quality of power for our consumers, we have successfully unmanned
our 50 grid substations through automation reengineering and I can assure you, this was not an
easy task,’ he added.
A
nd meanwhile, the office boy entered with tea for visitors. It was January
20, 2012; the visitors constituted executives from different state electric util-
ities of India who had come to visit Tata Power Delhi Distribution’s (TPDD)
Supervisory Control and Data Acquisition (SCADA) control centre under a training
programme at the TPDD training centre to learn about the best practices adopted
by TPDD over its decade long existence. The SCADA control centre was located at
the CENNET (Centre of Network) Building, Pitampura, which was the centralized
location to control TPDD’s operations of the electricity distribution of North and
North-West areas in New Delhi, the capital of India. The entry to the control centre
was prohibited. A special state-of-the-art visitor’s gallery was an important part of
the SCADA control room, which was like a balcony in a theatre. As visitors entered
into the gallery on the top floor of the CENNET Building, their excitement took over
when they saw a big wall-size screen at the front showing a graphical representa-
tion of the complex electricity network and officers managing the electricity of Delhi
KEY WORDS
with mouse clicks sitting in the SCADA control room. Everyone was surprised and
Public-Private Partnership said that it was interesting to see how the officers in the control room restored the
electricity of areas miles away from there within seconds. This not only saved the
Power Distribution
physical movement time of breakdown attending crew to identify and rectify the
Technological Innovation fault in the complex network but also won consumer satisfaction in terms of much
Business Process more reliable electricity.
Transformation
‘Where is the unmanned grid staff now? And how was it initiated?,’ an eager visitor
Change Management asked Banga. Banga picked up the tea cup while looking out of the glass window
Technological Innovation and replied, ‘They have been redeployed to other manpower deficit divisions after
providing training as per need.’ While answering this query, Banga remembered
Talent Management
those days when the substation automation was about to be proposed and executed
years ago.
Source: www.smartgridnews.com
These included SCADA and GIS applications, auto- system (OMS), Secondary Data Centre, and many more.
matic metre reading (AMR), global system for mobile The relative size and growth of competitive utilities
(GSM) switching, geographical information systems in Delhi are given in Exhibit 2. Since the distribution
(GIS) and SAP-integrated asset management, CAP on companies in Delhi are allocated licenses to operate in
TAP project, distribution management system (DMS)/ different geographical areas, there is no direct competi-
distribution automation (DA), outage management tion for capturing the market. But to build up an image
Source: www.derc.gov.in
of a reputed successful company in the society and Commission of India (CCI) has started to investigate and
the government, all distribution companies in Delhi promote the open access scenario in Delhi.
strive to perform better than the others. It also helps in
extending the license period in future. In financial year 2007–2008, DERC, through multi-year
tariff regulations, brought about significant changes
Organizational Performance which impacted profitability. The baseline of AT&C
losses was changed whereby the loss reduction targets
TPDD had consistently over-achieved its regulatory for financial year 2008–2011 were fixed from the actual
targets since its inception and performed better than reduced loss levels reached at the end of financial
its competitors in Delhi. This, while restricting the year 2007, thus severely curtailing the further scope
tariff hikes as was anticipated on privatization, had of incentive from the over-achievement of loss reduc-
also helped shareholders to earn handsome returns. tion targets. Second, the capital base for the allowance
The provision of open access with the aim ‘to provide of return on equity (ROE) was changed. From financial
electricity to consumers in other license areas of Delhi’ year 2007–2008 onwards, ROE was allowed only on
as per Indian Electricity Act 2003, motivated TPDD to capitalized expenditure unlike earlier where the same
perform above expectations to attract consumers from was allowed on entire capex including capital works in
other license areas. Hindustan Times (a daily news- progress (CWIP), thereby denying ROE on CWIP from
paper) reported, financial year 2007–2008 (Exhibit 3).
AT&C loss levels (%) 53.1 50.1 44.9 33.8 26.5 23.7 18.3 15.4
ROCE (%) – 3 4 8 12 13 11 13
ROE (%) 6 8 15 24 31 37 19
TPDD aspires to achieve single-digit losses by 2015 country. As far as the various stakeholders of setting
under its mission through innovative approaches for up SCADA were concerned, these included regulatory
the last mile reduction of commercial and technical authorities, employees, Tata management leadership
losses. TPDD achieved the highest delta loss reduction team, civil society, consumers, and other utilities.
among all utilities in India since its inception in July
2002 based on the comparative data released by the SCADA helped in understanding the importance of
Power Finance Corporation in 2009. Till 2011, AT&C technology in an organization and how it could help
loss reduction for TPDD was 75 per cent compared to companies to improve functioning. TPDD highlighted
64 per cent and 65 per cent of BRPL and BYPPL, respec- the PPP model and its increasing popularity as a success
tively. This resulted in the elimination of subsidy from strategy, thereby achieving the effective management
the Government of National Capital Territory of Delhi of aspirations of multiple stakeholders. In addition, the
to the power distribution sector and also in TPDD importance of employee training programmes and the
being recognized at both national and international effective deployment of resources under a changing
forums (refer to Exhibit 4). environment was also emphasized adequately. Finally,
TPDD gave inputs on managing change effectively
leading to organizational transformation and high-
Role of SCADA in Overall Success of TPDD
lighted the concept of sustainability of processes and
SCADA revolutionized the way electricity was distrib- adoption of global best practices.
uted in Delhi and had streamlined the process of power
distribution. Positive outcomes due to SCADA were There was an improvement in the business model with
evident in the first few years of its functioning. TPDD the IT working as an enabler to serve the needs of a large
needed to sustain the momentum and improve its reve- Indian population. There was also a visible impact on
nues on an ongoing basis. The government needed more the overall effectiveness as well as efficiency levels of
focused efforts in order to replicate this model in other TPDD as a result of this initiative. The key success factors
states across the country. The success of TPDD could leading to the successful implementation of SCADA
also serve as a stepping stone for other PPPs across the included the successful deployment of technology, effec-
Phase Control Scenario Envisaged Operating Staff at Total Other Staff for Total Staff in Total Staff
Terminal Per Shift Directing/Coordinating Shift Duty (Operations) at
System Operations in PSC
Shift Duty
August 2005 2 terminals (8 Grids) 1 3 4 16
(Existing Phase) Remaining 42 grids operated by Total: 4 Total: 12 Total: 16
local staff
December 2006 Final 5 1 6 24
SCADA in service (50 Grids)
Total: 20 Total: 4 Total: 24
Source: Case writer’s notes.
Reduction in Manpower Savings due to redeployment of manpower (50 grids with 7 $2.52 million per annum
operators per grid and salary @ $600 per person per month)
Downtime Reduction Savings due to system efficiency $0.864 million per annum
Over drawl Saving due to no over drawl, as compared with other utilities $3.6 million per annum
Total $6.984 million per annum
APPENDIX A
Pending applications for new 20,000 applications Highly significant as all new connections are installed in a fixed time frame
connections
Industrial units within North 3,000 18,000 (tremendous growth due to reliability of power supply)
Delhi
AT&C losses 53% 13%
Computers in use 2 Over 2,000
Metres Faulty metres Theft-proofing through tamper-resistant smart metres
Employee behaviour and Unprofessional and mostly Highly professionalized given the commitment conveyed by being a Tata group
attitude rude business enterprise
Performance benchmark Absence of any benchmark China light and Power, Baltimore Gas and Electricity and Mauritius Central
Electricity Board
Use of information and Virtually none Extensive use of information and computer technology. For instance setting up of
computer technology SCADA centre, use of enterprise resource planning (ERP) applications, a distribution
management system (DMS), an operations management system (OMS) and
software that enabled automated metre reading.
Distribution lines Low voltage distribution lines High voltage distribution lines
Aesthetics and safety in open Totally absent Insulated aerial bunched cables are installed which improves safety and reduced
wiring losses.
Grid stations Manually operated Remotely operated grid stations (56 new grid stations)
Customer service Harrowing experience Electronic metring, online account management, 24 hour call centre and
over 1,00,000 pending complaints resolved within one year have all brought
considerable delight to customers overall experience
Company performance A loss-making government A profit-making Tata group company in joint venture with the Delhi Government.
enterprise TPDD benefitted from Tata Business Excellence Model (TBEM), a quality framework
that helps companies strive for and achieve business improvement.
Employee learning and No structured mechanism in Setting up of separate training centre in 2005 (Centre for Power Efficiency in
training place Distribution) which today renders training not only to employees of TPDD but also
to other power companies
Backup plan Non-existent Setting up of the Rithala captive power plant as part of TPDD’s islanding system
to serve as a backup in the case of breakdown (essential in case of hospitals and
streetlights).
Cost of distributing electricity 122 paise per unit 2 paise per unit (100 paise makes 1 INR) primarily due to technology interventions
Industry recognition Not there Distinction of being recognized as the first success story of power reforms in India
Associated businesses None Setting up a wholly-owned subsidiary NDPL Infra, a venture that targets business
opportunities outside the licensed area of company’s power distribution activities.
Table A.2: Groups formed to Meet Functional Requirement of Power System Control Centre (PSCC)
B. Control Room a. Day-to-day operation including control and monitoring of sub- NOG will be formed of Electrical Engineers with basic
Network transmission and distribution network knowledge of network and distribution system. In
Operation b. Coordinating with field staff to attend planned, unplanned, and consultation with the Automation Consultant and
Group (NOG) emergency outages PSC (Power system control) it was decided that 5
c. Issuing safety permits engineers would be operating SCADA system on a
d. Generation of Management Information Systems and other reports shift basis. In addition, there would be 1 Manager
level person in-charge of SCADA operations coming
in day shift. Considering 5 operation engineers per
shift for manning SCADA terminals, requirement of
minimum 24 new executives is projected for 24x7
operations (Exhibit 5). It is proposed to develop
Manager/Assistant Manager level executives from
this NOG as they would have acquired sufficient
experience in network operations /management and
dealing with Delhi Transco Ltd. (DTL) and Reliance
Energy Ltd (REL). Out of 24, 16 executives can be
selected from the existing work force available. Hence
additional requirement is 8 executives.
C. Communication a. O peration and maintenance of communication network which will CSG in charge with a team of four executives with
Support Group18 include terminal equipment, communication system for distribution electronics and communication background are
(CSG) automation system and trouble shooting in SCADA related to required for maintaining the system.
communication system
b. O peration and maintenance of physical media that is OPGW, OFC
and all dielectric Self-sustaining (ADSS) and radio link
c. T o provide all future communication requirement for grid station
and RMU and their linking with SCADA system
d. C oordination with the local area network (LAN) networking group
(IT dept). It is envisaged that LAN networking (except SCADA LAN)
will be taken care by IT dept separately.
e. T erminal equipments have been finalized and training for network
management system to be given to executives who will manage the
network configuration
D. Network Planning I. Network Planning To begin with, this group may be formed by
and Analysis enveloping the existing System engineering group,
– Short-term and long-term planning of 66/33/11 kV and 415 V network
Group19 (NPAG) network planning group available with Corporate
in view of addition of new grid stations, power transformers, new
Operations Services (COS) and two GIS associates
sources from DTL and new connections/ disconnections, etc.
– Preparation of yearly CAPEX (Capital Expenditure) plan for network
management i.e. network augmentation/improvement schemes, etc.
– P eriodic review of the network load growth pattern; Identification
of automation points for enhancing reliability; and Improvement of
power quality indices
–C oordination with SCADA system to get network parameters for load
flow analysis
II. Commercial Interface
–A
ll commercial connections of large industrial power (LIP) and
small industrial power (SIP) before being sanctioned by commercial
group shall be analysed by NPAG for their potential impact and
load planning on network. This process shall initially be operational
through e-mail approvals; however, low tension (LT) connection
below 15 KW will be sent to NPAG for network updating in GIS after
field deployment.
III. GIS Interface
–U
pdating the GIS electrical network. Presently, the GIS group having
prepared the GIS map updates it regularly. However, in future,
as NPAG will be involved in the process for all new connections/
disconnection and other new schemes, this activity will better be
managed by NPAG to keep the electrical network updated in GIS.
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