 "With projects stuck & loan burden, power majors hunt for top talent")
In a backdrop of stuck projects and the need to get these going and generate cash, power companies are busy hunting for good talent at the top.
Essar Power is expanding its capacity and has made appointments of managing directors (MDs) in Jharkhand, Madhya Pradesh and Gujarat. Monnet Power and Lalitpur Power Generation Co, Bajaj Group, have appointed new chief executive officers (CEOs) in the recent past.
Power projects have been hit by delays in environmental and forest clearances. As many as 40 are stuck for lack of such approvals, of which 30 projects are worth a combined Rs 1.5-2 lakh crore. Three projects of Essar, in MP, Gujarat and Jharkhand, involving 4,800 Mw, are yet to take off.
KVB Reddy, executive director, Essar Power, said: "At a time when we are planning to take our power generation capacity to 6,700 Mw from about 4,000 Mw currently, we are inducting industry veterans to head each of our generating and under-implementation assets. This will enable us to provide each asset with a dedicated management team, focused on execution of projects, operational efficiency and maximising of returns."
In the recent past, Essar Power has made appointed Ramesh Kumar (former chief operations officer of KSK Energy Ventures) as MD for Essar Power Gujarat Ltd. Vishwaroop Lal, former CEO of NTPC Alstom Services, was hired as CEO of Essar Power ROE Assets. Vinay Mittal, ex-CEO of Monnet Power, was hired as CEO of Essar Power MP Ltd.
"Each MD, supported by a dedicated management team, will operate each asset (company) like an independent company, making them more agile and competitive," Essar's Reddy said.
Monnet Power Company, a wholly owned subsidiary of Monnet Ispat & Energy, expects to commission the first 525 Mw unit of its 1,050 Mw coal-based power plant in Odisha by next month. It has appointed Vijay Gupta, with 35 years of experience at places such as Tata, NTPC and Shravanthi Infratech, as its CEO. Monnet Ispat has invested Rs 4,000 crore and will be investing another Rs 1,500 crore on this project, according to news reports.
Another major, Jindal Power Ltd, implementing an expansion project of 2,400 Mw (4x600 Mw), is also strengthening the team with more top-level recruitments. A JPL spokesperson said, "JPL is also in the process of developing a team of competent professionals at middle age for managing its projects."
According to Suresh Raina, senior partner, Hunt Partners, a leading headhunting firm, under the circumstances such as insufficient coal linkages, lack of cash flow from state utilities and loan dues, a big factor is finding the people who can make the projects happen. "In this backdrop, people who have decades of experience in project execution and technology experts who can increase the efficiency of the plants to deliver the highest PLF (utilisation), corporate affairs experts who can work with government departments and regulators to get clearances, are in high demand for the key positions."
In the projects commissioned, companies want to get these working at 100 per cent capacity so that they can start generating the cash, he added.
Bajaj Group, which has made a foray into thermal power generation through Lalitpur Power Generation Co Ltd (LPGCL), a special purpose vehicle of Bajaj Hindusthan, appointed
K J Varkey as CEO in February 2013. LPGCL’s 1,980 Mw (3x660) power project in UP is expected to be commissioned by the end of 2014.
Varkey worked as COO at the Lanco Group for setting up a 1,320 Mw plant at Wardha; at JSW Energy, he headed an SPV of a 4x300 Mw project in Ratnagiri.
Essar Power is expanding its capacity and has made appointments of managing directors (MDs) in Jharkhand, Madhya Pradesh and Gujarat. Monnet Power and Lalitpur Power Generation Co, Bajaj Group, have appointed new chief executive officers (CEOs) in the recent past.
Power projects have been hit by delays in environmental and forest clearances. As many as 40 are stuck for lack of such approvals, of which 30 projects are worth a combined Rs 1.5-2 lakh crore. Three projects of Essar, in MP, Gujarat and Jharkhand, involving 4,800 Mw, are yet to take off.
| HEADHUNTERS |
|
KVB Reddy, executive director, Essar Power, said: "At a time when we are planning to take our power generation capacity to 6,700 Mw from about 4,000 Mw currently, we are inducting industry veterans to head each of our generating and under-implementation assets. This will enable us to provide each asset with a dedicated management team, focused on execution of projects, operational efficiency and maximising of returns."
In the recent past, Essar Power has made appointed Ramesh Kumar (former chief operations officer of KSK Energy Ventures) as MD for Essar Power Gujarat Ltd. Vishwaroop Lal, former CEO of NTPC Alstom Services, was hired as CEO of Essar Power ROE Assets. Vinay Mittal, ex-CEO of Monnet Power, was hired as CEO of Essar Power MP Ltd.
"Each MD, supported by a dedicated management team, will operate each asset (company) like an independent company, making them more agile and competitive," Essar's Reddy said.
Monnet Power Company, a wholly owned subsidiary of Monnet Ispat & Energy, expects to commission the first 525 Mw unit of its 1,050 Mw coal-based power plant in Odisha by next month. It has appointed Vijay Gupta, with 35 years of experience at places such as Tata, NTPC and Shravanthi Infratech, as its CEO. Monnet Ispat has invested Rs 4,000 crore and will be investing another Rs 1,500 crore on this project, according to news reports.
Another major, Jindal Power Ltd, implementing an expansion project of 2,400 Mw (4x600 Mw), is also strengthening the team with more top-level recruitments. A JPL spokesperson said, "JPL is also in the process of developing a team of competent professionals at middle age for managing its projects."
According to Suresh Raina, senior partner, Hunt Partners, a leading headhunting firm, under the circumstances such as insufficient coal linkages, lack of cash flow from state utilities and loan dues, a big factor is finding the people who can make the projects happen. "In this backdrop, people who have decades of experience in project execution and technology experts who can increase the efficiency of the plants to deliver the highest PLF (utilisation), corporate affairs experts who can work with government departments and regulators to get clearances, are in high demand for the key positions."
In the projects commissioned, companies want to get these working at 100 per cent capacity so that they can start generating the cash, he added.
Bajaj Group, which has made a foray into thermal power generation through Lalitpur Power Generation Co Ltd (LPGCL), a special purpose vehicle of Bajaj Hindusthan, appointed
K J Varkey as CEO in February 2013. LPGCL’s 1,980 Mw (3x660) power project in UP is expected to be commissioned by the end of 2014.
Varkey worked as COO at the Lanco Group for setting up a 1,320 Mw plant at Wardha; at JSW Energy, he headed an SPV of a 4x300 Mw project in Ratnagiri.