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Thermal Power Sector: Goldmine of opportunities for IA

-- CA Shyamal Budhdev

Introduction:
Internal auditors are trusted consultants and partners of the management. They are the ‘eyes and ears’ of the senior
leadership. Certain radical approaches also term Internal Audit as the ‘Jack of all trades’.
Background of the Power Sector:
Power sector is the backbone of any country’s economic growth. India, in the last few years has been on the cusp of
becoming world no. 1 in many sectors, including power generation and consumption.
The power capacity and demand has been steadily climbing globally. Currently, India stands 3 in generation and 2 nd in
rd
overall consumption as per certain reports of H1- 2020-21.

For the period 2016-20, electricity generation in India has increased at CAGR of 1% The installed power generation capacity
is highly skewed towards fossil based fuels.

Sources (based) – June 21 Generation
Capacity (GW)
Sources (based) – June 21 Generation Generation Capacity (GW)
Fossil 234.03
Capacity (GW)
46.32 6.78
Fossil 234.03
Renewable 96.95
Renewable 96.95
Hydro 46.32 96.95
234.03
Hydro 46.32
Nuclear 6.78
Nuclear 6.78
Total 384.08
Fossil based Renewable energy based
Total 384.08
As per Min. of Power, Min of Coal, various sources Hydro energy based Nuclear energy based

As per Min. of Power, Min of Coal, various sources
Bird’s eye view of the electricity generation process:
Coal Water
 Coal (imported / indigenous) is crushed into fine powder
in Coal Mill.

 Coal powder is burnt in burner which generates heat Milling DM Plant

 Due to heat the water gets converted into steam
Boiler

 The pressurised steam rotates the turbine and electricity
is generated Steam Turbine

 The electricity generated is transmitted for stepping up
in switch yard Switch Yard

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