TVNL has an inherent strength of having a strong engineering base for its operations. TVNL has been allocated one (1) coal block –Rajbar E&D with reserve coal capacity of 420.22MT and a peak capacity of 10MTPA through an Allotment Agreement executed on 30th March 2015 followed by an Allotment Order dated 30th June 2015.
TVNL has also implemented SAP-ERP successfully on 1st April 2016 with a vision of paper less environment.
Generating units of TVNL are old and most of the control systems have become obsoletes and are required to be renovated. TVNL has replaced Control System of one unit only and Control System of another unit is required to be changed. The use of these control systems has led to difficulties in meeting operational norms and additional expenditure needs to be done for maintenance of the units and to ensure compliance to environmental norms. TVNL also faces issues on the human resources front with increasing attrition levels with professional and competent staff leaving with better opportunities in the power sector. There is a need for an integrated system to be in place for ensuring organization-wide accounting and control measures to be implemented more effectively.
There is huge market potential for TVNL in the power sector being a well-established generation company. Having been allotted coal blocks, TVNL is keen on exploring options of entering into Joint ventures for captive mine development and establishment of power projects. TVNL can in future look at providing other services relating to Operations & maintenance activity, laboratory facilities, Research & Development, Training, Technical consultancy. Going forward, TVNL can attempt to participate in Competitive bidding process as an opportunity to benchmark its competitiveness vis-à-vis other private players since competitive bidding is expected to become mandatory in the near future for tying up power in the medium and long term. TVNL can look at option of setting up Merchant Power plant in the future where it is possible to take advantage of the market prices and get better returns. Having strength in design and implementation of power projects, TVNL can look at options of setting up power projects through MOU route in other states of the country and capitalize on this expertise. Plus, with coal mines at disposal, company may aim for merchant mining (subject to regulatory approvals) of coal to meet country’s ever-increasing coal demand.
With the de-licensing of generation and encouragement to private sector investment in power sector, other players in the market with higher efficiencies would be an emerging threat to TVNL. While TVNL is going for capacity expansion in a major way, the constraints of equipment supply in the country can create implementation issues. However, the major threat that still remains is that TVNL finds itself in terms of non-payment of dues by JUVNL / JBVNL due to which TVNL is defaulting on its suppliers and its ability to negotiate better terms with them has been less fruitful.