Detailed Project Report (DPR) for ERP Implementation

Detailed Project Report

for ERP Implementation
at Uttar Power Power
Corporation Limited
(UPPCL)

16th June 2020

Submitted to:

Uttar Pradesh Power Corporation Limited

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 Detailed Project Report (DPR) for ERP Implementation

Disclaimer:

This report has been prepared by Ernst & Young LLP (hereinafter referred to as “Ernst &
Young” or “EY”) for Uttar Pradesh Power Corporation Limited (hereinafter referred to as
“UPPCL”) to provide Consultancy Services for Preparation of Detailed Project Report (DPR)
for ERP Implementation at Uttar Pradesh Power Corporation Limited.

The inferences/analyses made by Ernst & Young in this report are based on information
collated through primary research, secondary research and our knowledge about the
project and its objectives. Ernst & Young has taken due care to validate the authenticity and
correctness of the information from various sources, however, no representations or
warranty, expressed or implied, is given by Ernst & Young or any of its respective partners,
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or opinions provided to Ernst & Young by third parties or secondary sources. There is no
independent verification has been done by EY.

Nothing contained herein, to the contrary and in no event shall Ernst & Young be liable for
any loss of profit or revenues and any direct, incidental or consequential damages incurred
by UPPCL or any other user of this report.

In case, the report is to be made available or disclosed to any third party, this disclaimer
along with all the limiting factors must be issued to the concerned party. The fact that Ernst
& Young assumes no liability whatsoever, if for the reason any third party is led to incur any
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© Ernst & Young, 2020

Errors and Omissions:

When reading this document if you identify any errors or omissions please advise the author
in writing, in 15 calendar days, giving a brief description of the problem, its location within
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Confidentiality:

This report is intended solely for the information and use of the management of UPPCL and
is not intended to be and should not be used by anyone other than these specified parties.

Ernst & Young therefore assumes no responsibility to any user of the report other than
UPPCL. Any other persons who choose to rely on our report do so entirely at their own
risk.

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 Detailed Project Report for ERP implementation at UPPCL

Table of Contents
1 Background ................................................................................................... 4
Introduction ............................................................................................. 4
About UPPCL ........................................................................................... 5
Mission of UPPCL ..................................................................................... 7
Objective ................................................................................................. 7
Scope of ERP Implementation at UPPCL...................................................... 9
Benefits of ERP System ............................................................................ 9
Costing.................................................................................................. 10
Duration ................................................................................................ 10

List of Tables
Table 1 : Details of Consumers and Districts ............................................................ 6
Table 2 – Details of RAPDRP PART-A and Non-RAPDRP Offices ................................. 6

List of Figures

Figure 3: Objectives of ERP at UPPCL ................................................................... 8

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 Detailed Project Report for ERP implementation at UPPCL

1 Background
Introduction
Uttar Pradesh being the one of the largest State in India is also one of the most populous
state of the country with its administrative capital Lucknow. With the levels of literacy rate
of around at 70 % the state has abundant availability of quality human resource. It has the
abundance of potential as destination for investments in manufacturing, tourism and
Infrastructure services.

Power sector is the critical infrastructure element required for the smooth functioning of
the economy. Efficient, reliant and sustainable power is essential to stimulate growth and
prosperity in the state. The availability of the reliable, quality and affordable power can
ensure growth of all sectors of the economy being it agricultural, industrial and
others. Towns of Kanpur, Varanasi, Allahabad, Gorakhpur, Meerut, Aligarh, Moradabad,
Muzaffarnagar, Saharanpur and Jhansi are known for their industrial importance in the
state as well as at the national level.
Uttar Pradesh was one of the first state to embark upon economic and structural reforms in
power sector. GoUP had taken key structural reforms and created entities , Uttar Pradesh
Power Corporation Limited (2000) , Kanpur Electricity supply Company , KESCO (2000) ,
Purvanchal Vidyut Vitran Nigam Limited , PuVVNL – Varanasi (2003) , Madhyanchal Vidyut
Vitran Nigam Limited , MVVNL- Lucknow (2003) , Paschimanchal Vidyut Vitran Nigam
Limited , PaVVNL - Meerut (2003) and Dakshinanchal Vidyut Vitran Nigam Limited , DVVNL-
Agra (2003).

UPPCL has the following major online systems in place-

• Urban Online Billing: To bring efficiency and transparency in operations, an online
system for billing and collection consisting 17 modules is deployed in 168 towns
across UP for a consumer base of 7.5 Million. The web applications have been hosted
at on-premise Data Centre (DC) with replicated data in the Disaster Recovery Centre
(DRC), and are accessed by various divisions, circle, sub-division and other offices
situated at different locations in 168 towns across the state over WAN environment.
• Mobile Applications: Various mobile applications (e-Nivaran, e-Sanyojan, FAME) for
urban and rural consumers have been developed for improving efficiency, revenue
and easy functioning. These apps are integrated with urban and rural online billing
systems and various payment service providers.
• Customer Care Centre for urban Consumers: Customer Care Centres for consumers
are established in 4 Discoms to take care of the grievances and faster redressal.
Consumer complaints are registered/tracked/resolved through 1912 (Toll Free
Number). This system is integrated with urban online system and rural online billing
system.
• Web Self Service: To facilitate its consumers UPPCL provides online payment, trust
billing and load enhancement features to its users.
• Prepaid Meter Online Recharge- Integration is in place to do online recharge prepaid
meter installed.

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• GIS and Network Analysis Solution – GIS system is in place which includes asset
mapping and consumer indexing. UPPCL also keeps updating the GIS database
through incremental surveys of consumers and assets to accurately carry out energy
accounting. To complement the GIS, GIS based network analysis system is
implemented to be able to accurately carry out network studies and optimise
deployment of network elements.
• Integrations with Other Government Portals/Apps – Billing system has been
integrated with Centre for E-Governance and (Customer service centers)CSCs for bill
payment, Udyog Bandhu, CM Dashboard, Energy Audit Module etc
• Other Integrations with UPPCL – Official website of www.uppcl.org has various
integrations such as Energy Accounting Directory, Commercial Statements,
Personal Information System, Jansunwai, Disciplinary Proceedings, Feeder wise
Supply Hours, Daily Supply Hours, Court Case Monitoring etc.

About UPPCL
Uttar Pradesh Power Corporation Limited (UPPCL), is a company registered under the
provisions of Companies Act 1956 / 2013 and is a fully owned entity of Government of Uttar
Pradesh.

Besides being the holding company for Power Generation and Transmission entities, UPPCL
is also the holding company for five DISCOMS namely Paschimanchal Vidyut Vitaran Nigam
Limited (PVVNL), Purvanchal Vidyut Vitaran Nigam Limited (PuVVNL), Madhyanchal Vidyut
Vitaran Nigam Limited (MVVNL), Dakshinanchal Vidyut Vitaran Limited (DVVNL) and
Kanpur Electricity Supply Company (KESCO).These DISCOMs are responsible for supplying
of electricity to the consumers and to maintain the 33/11, 11/0.433 KV, substations, 33/11
kV/LT network of the area, receiving electricity supply from higher voltage system,
distribute it to its consumers, record their consumption, issue electricity bills according to
applicable tariff and realize the revenue. Various divisions of the DISCOMs are also
responsible to release new connections and from time to time extend and improve its
distribution network and control the line losses of electricity, technical as well as commercial
and various other related activities.

The Company is engaged primarily in the business of distribution of Electricity. It has been
vested with the distribution assets, interest in property, rights and liabilities of the erstwhile
UPSEB necessary for the business of distribution in its area of distribution comprising of all
districts of Uttar Pradesh.

The above 5 Companies have been given the status of a Distribution licensee as per
Section14 of the Electricity Act 2003. In order to fulfil the obligations of the Distribution
licensee as mandated under the provision of Uttar Pradesh State Electricity Reforms
Transfer Scheme 2012 and Electricity Act 2003, the main objects to be pursued by the
company are:

• To undertake the activities of distribution to all consumers irrespective of the voltage,

provision, supply, wheeling, purchase, sale, import, export and trading of electricity,

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introduce open access in distribution as per the Electricity Act 2003 and/or the
directions of the regulator.
• To plan, develop, acquire, establish, construct, erect, lay, hire, lease, buy, sell, operate,
run, manage, maintain, enlarge, alter, renovate, modernize, work and use a power
distribution system network in all its aspects including amongst others various voltage
lines and associated sub -stations, including distribution centers, cables, wires,
accumulators, plants, motors, meters, apparatus, computers and materials connected
with sub-transmission, distribution, supply of electrical energy, ancillary services,
telecommunication and telemetering equipment.
• To tender, finalize and execute Power Purchase Agreements and other agreements for
sale or purchase of electricity with generating companies, trading companies, other
distribution companies, Central and State generating authorities, departments or
companies, societies, other States, utilities, Independent Power Producers and other
Persons.
• To undertake Rural Electrification schemes in the licensed area.
• Any other work incidental to the objectives & functions of the company.

The details of 5 DISCOMS are as follows;

RAPDRP PART A Non-RAPDRP

No. of No. of
DISCOMS District District
Consumer Consumer
Served Served
Served * Served*
Dakshinanchal Vidyut Vitran Nigam Ltd (DVVNL) 1093589 19 3286962 21
Madhyanchal Vidyut Vitran Nigam Ltd (MVVNL) 1815243 17 4126303 19
Purvanchal Vidyut Vitran Nigam Ltd (PuVVNL) 1229043 19 5573860 20
Paschimanchal Vidyut Vitran Nigam Ltd (PVVNL) 2421582 13 3321032 12
Kanpur Electric Supply Company (KESCO) 601819 1 Not in scope
Total 7161276 69 16308157 72
Table 1 : Details of Consumers and Districts
*As per 2018 data

Distribu
Test
Discoms Zone Circle tion SDO
Division
Division
Dakshinanchal Vidyut Vitran Nigam Ltd (DVVNL) 6 28 77 190 23
Madhyanchal Vidyut Vitran Nigam Ltd (MVVNL) 6 29 105 205 27
Purvanchal Vidyut Vitran Nigam Ltd (PuVVNL) 6 30 96 194 22
Paschimanchal Vidyut Vitran Nigam Ltd (PVVNL) 6 29 96 195 28

Total 24 116 374 784 100

Table 2 – Details of RAPDRP PART-A and Non-RAPDRP Offices

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Mission of UPPCL
Uttar Pradesh Power Corporation Ltd. (UPPCL), with a vision to provide, uninterrupted
power supply to every consumer of the state is now looking forward to increasing the
consumer base as well as increasing the revenue by incorporating new technology, process
and procedure. The mission of Uttar Pradesh Power Corporation Limited (UPPCL) is to
ensure reliable quality of power to its customers at competitive prices. The UPPCL is
committed to achieving this mission through:
• Provide cost efficient good quality electricity to all categories of consumers for
economic development/social uplift of the State.
• Make the energy sector commercially viable so that it ceases to be burden on the state
budget; and
• Protect the investment of the consumers.

Objective
UPPCL has a pressing need to streamline its business processes and operations across
various departments for optimal utilization of human and technical resources.

Some of the key challenges faced by UPPCL and its departments are mentioned as below:
• UPPCL is currently maintaining records & processing payroll for more than 40,000
(appx.) employee, also, its resources are on deputation at different ESCOMs which
requires management & maintenance of large employee records. Furthermore, there is
need for consolidation of other employees which come from other government
department on deputations, external consultants etc.
• Supply chain management of material, logistics, and inventory control for
implementation and erection of transmission towers which requires timely procurement,
tracking and dispatch of raw material and parts at field locations.
• Requirement for tracking and monitoring of Inter Organization goods and their transfer
between Divisions/Sub-station etc.
• Limited mechanism for tracking and maintaining adequate & optimized inventory levels
in the stores.
• Limited mechanism for project monitoring, tracking of timelines, deliverables and
payments with an assessment of delay incurred by the contractor.
• The storage and processing of data is manual which results in data entry redundancies
and sub-optimal utilization of resources.
• Need for effective augmentation in existing power transmission network for effective
evacuation & transmission of power to meet customer’s demand in near future.
• Legacy systems for Accounting and Financial consolidation are not efficient, thus
employees are spending ample amount of time for data entry and data reconciliation
tasks.
• Disintegrated and standalone legacy systems which are technically obsolete in most of
the cases with limited integration touchpoints amongst each other and generate
duplicate reports for different durations making reconciliation different.

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• Absence of Bird Eye View’ to the management. Incomplete, often inaccurate picture of
overall company performance for the senior management, so accurate reporting and
automation of operations is the need of the hour.

Though the challenges faced by UPPCL are formidable, they can be surmounted by
converting them into opportunities through automation of business processes and adoption
of technological interventions like ERP System. Hence, UPPCL envisages to implement ERP
System with the following objectives:
• Standardize business processes and adopt leading business practices.
• Achieve better financial management and faster financial reconciliation.
• Efficient Assets Management of the Transmission Network and Sub-Stations.
• Manage strengthening of Transmission Network through efficient Project Management.
• Manage the organization with optimum utilization of enterprise resources and
productive deployment of human resource.
• Real time information availability across the organisation.
• Enterprise wide seamless Integration
• Single repository of master data with easy data retrieval and reporting and ‘Bird Eye
View'’ to the Top Management.

Efficient
Assest
Management
Imporved
Improved
Human
Financial
Resouce
Management
Productivity

Efficient Standard
Objective
Project Business
of ERP at
Manageme UPPCL
Process and
nt Best Practices

Figure 1: Objectives of ERP at UPPCL

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 Detailed Project Report for ERP implementation at UPPCL

Scope of ERP Implementation at UPPCL

The proposed scheme envisages Implementation of Enterprise Resource Planning System
in UPPCL covering all the critical functions at all the locations of the organization.

The scope of work of System Integrator (SI) shall include the following:

• Supply and installation of ERP licenses including ATS

• ERP system implementation, Project Management, Training, Handholding &Support,
Basic Help-Desk etc.
• ATS of the ERP implementation for two years after the Full Go-Live(all modules and all
locations). Optional extension up to additional two more years.
• Supply, installation, commissioning and maintenance of requisite hardware & network
equipment.
• Commissioning of required Hardware, Software networking items etc. at UPPCL’s
existing Data Centre (Lucknow) and Disaster Recovery Centre (Noida).
• AMC and Maintenance of Hardware for 5 years

Benefits of ERP System

ERP is an asset for enabling the organization to run business smoother by unifying and
protecting the information, automating processes and producing easy-to-understand
trends. Below mentioned are some of the key benefits of ERP System:
• Efficiency: An ERP System eliminates repetitive processes and greatly reduces the need
to manually enter information. ERP system also streamline business processes and make
it easier and more efficient.
• Forecasting: Since the information within ERP is as accurate as possible, businesses can
make realistic estimates and more effective forecasts. This will improve decision making
through use of information and business analytics
• Collaboration: ERP software touches on almost every aspect of a business, thus
naturally encouraging collaborative amongst different departments and employees.
• Scalability & Integrated Information: To meet additional business requirements over a
period ERP system allows addition of new users and functions to grow from the initially
implemented solution. Also, it brings an integrated platform with data consistency,
accuracy, an ease of access for information in one place by stable, secure and integrated
system for functions like Financials, Budgeting, HR & Payroll.
• Streamlined Processes & Cost Savings: ERP increases efficiency and productivity by
helping users to navigate through the complex processes, preventing data re-entry, and
improving functions such as production, order completion and delivery. Also, it helps in
achieving the better financial management and faster financial reconciliation for
organization.
• Mobility: An advantage of ERP System is having access to a centralized database from
anywhere you work like Home, office etc.
• Reporting: ERP software helps make reporting easier and more customizable with
improved reporting capabilities. Post ERP System any organization can respond to

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complex data requests more easily by data retrieval by real time information sharing
across the organisation.
• Enhanced Productivity: Through streamlining of redundant processes by automation,
optimum utilization of resources can be achieved thereby facilitating productive
deployment of human resources allowing them to work on other projects and tasks.
• Regulatory Compliance: Powerful ERP Systems will keep track of regulations within the
industry and monitor changes, which helps the organization to address governance and
compliance requirements and reporting requirements.
• Enterprise Integration: ERP enables integration of different functional & geographically
dispersed regional offices/sub-stations through cross-functional, process-oriented and
virtually integrated enterprise.
• Establishing Standard Business Processes and Practices: ERP system plays a major role
in establishing standard processes and practices within an organization. ERP System
implementation and use will be an opportunity to improve business processes and adopt
best business practices to derive maximum benefits out of it.
• Monitoring of Assets & Projects: Efficient asset management of transmission network
by effective monitoring, managing and maintenance of deployed assets. It also supports
the organization through effective and integrated management for on-going projects.

Costing
Total costing of the project with details
Name of the Project & Project No. GIS System Augmentation (For Rural-SW/HW)
Date of Start of Project 2019
Scheduled Date of Completion 2021

Estimated Cost (Rs. Crs) at start of ₹ 104.73

project
Cost Escalation / variation with NA
reasons, if any
Proposed Funding (Equity, Loan, NA
Grant details)
Scheduled Date of Completion Equity
Delay & reasons, if any NA

Duration
The overall project duration is for 24 Months.

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