A PROJECT REPORT FOR CUSTOMER SATISFACTION ON NDPL Submitted by ATUL BANSAL (04711301710) In partial fulfillment of requirements For the

reward of the degree OF BACHELOR OF BUSSINESS ADMINISTRATION Under the supervision of MS. AMANPREET KAUR

BERI INSTITUTE OF TECHNOLOGY, TRAINING AND RESEARCH TIKRI KALAN, DELHI (Affiliated to Guru Gobind Singh Indraprastha University)
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CERTIFICATE

This is to certify that the project entitled Customer Satisfaction submitted by Atul Bansal, Enroll no. 04711301710 has been done under my guidance and supervision in partial fulfillment of Bachelor of Business Administration. The working analysis mentioned in this report has been undertaken by the candidate himself and necessary reference has been recognized.

Ms. Amampreet kaur (Project guide)

ACKNOWLEDGEMENT

We would like to take this opportunity to express my deep gratitude towards all those who have in various ways helped me in the completion of this project. I like this opportunity to extend my sincere thanks to Ms. Amanpreet Kaur who provided me this great opportunity to work on a project for the company.

Once again I would like to express my sincere thanks to All Management Staff and employees of NDPL (North Delhi Power limited), New Delhi who encourage me and provided required helped me in completion of this project.

ATUL BANSAL
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CONTENTS Page Number

CERTIFICATE2 ACKNOWLIDGEMENT3 CHAPTER 1
INTRODUCTION...........................................................................................................................5

CHAPTER 2
LITERATURE REVIEW..............................................................................................................17

CHAPTER 3
RESEARCH METHODOLOGY....23

CHAPTER 4
DATA ANALYSING AND FINDINGS...26 CHAPTER 5 CONCLUSION AND SUGGESTION ...37

QUESIONNAIRE..................................................................................................................41
BIBLIOGRAPHY44

CHAPTER 1

INTRODUCTION

Company profile S.W.O.T Analysis of the Organization Competitor analysis

OBJECTIVE OF THE STUDY

To know about the satisfaction level of customers of NDPL and to identify the strategies of companies to satisfy their customers and therefore analyze the satisfaction level of customers with respect to the various service provided by the companies. The main objective is study the differences in perception of the customers of the other companies towards various services provided by them and identify customer satisfaction variables which lead to building relationship with customers in the electricity providing companies.

COMPANY PROFILE

NDPL (North Delhi power limited)

North Delhi Power Limited (NDPL) is a joint venture between Tata Power Company and the Government of NCT of Delhi with the majority stake being held by Tata Power. It distributes electricity in North & North West parts of Delhi and serves a populace of 50 lakh. The company started operations on July 1, 2002 post the unbundling of erstwhile Delhi Vidyut Board. With a registered consumer base of around 10 lakh and a peak load of around 1250 MW, the companys operations span across an area of 510 sq kms.

NDPL has been the frontrunner in implementing power distribution reforms in the capital city and is acknowledged for its consumer friendly practices. Since privatization, the Aggregate Technical & Commercial (AT&C) losses in NDPL areas have shown a record decline. Today they stand at 14% ( as on March 31, 2010) which is an unprecedented reduction of over 74% from an opening loss level of 53%.

On the power supply front too, NDPL areas have shown remarkable improvement. The company has embarked upon an ambitious plan to implement high-tech automated systems for its entire distribution network. Systems such as SCADA, GIS and OTS are the cornerstone of the companys distribution automation project. To fight the menace of power theft, modern

techniques like High Voltage Distribution (HVDS) System and LT Arial Bunch Conductor have been adopted.

NDPL has to its credit several firsts in Delhi: SCADA controlled Grid Stations, Automatic Meter Reading, GSM based Street Lighting system and SMS based Fault Management System. To ensure complete transparency, the company has provided online information on billing and payment to all its 1 million consumers. This happened in the first year of operations itself. NDPL believes in providing more value than just electricity and is even rewarding its consumers for timely payment.

NDPL is the first power distribution utility from India to have won the prestigious Edison Award in the international category. The prestigious award is given annually by the Edison Electric Institute (EEI) to honour both international and U.S. electric companies for outstanding contributions to the advancement of the Power industry.

SWOT ANALYSIS

Strengths
Successful public private relationship in generation, transmission and distribution: North Delhi Power Limited (NDPL) is a joint venture between Tata Power Company and the Government of NCT of Delhi with the majority stake being held by Tata Power. It distributes electricity in North & North West parts of Delhi and serves a populace of 50 lakh.

Distribution network: The Company has embarked upon an ambitious plan to implement high-tech automated systems for its entire distribution network. Systems such as SCADA, GIS and OTS are the cornerstone of the companys distribution automation project. To fight the menace of power theft, modern techniques like High Voltage Distribution (HVDS) System and LT Arial Bunch Conductor have been adopted.

Market share: Present registered consumer base is around 1 million and a peak load is 1100 mw, the companys operation span across an area of 510 KM sq.

Weakness
Area: Covers limited area: One of the weaknesses of NDPL is that it covers only northern and north western parts of New Delhi.

Opportunities
Power Trading: India being developing country, its economy is growing at about 8% to 9%. Due to rapid urbanization and change in the lifestyle of the people, the demand for power is increasing.

Projects: The Company has created long-term sources by tying up with power projects located across the country and include thermal power projects based on coal and running of hydro power plants.

Distribution Network: While India has the third largest transmission and distribution network in the world, there is still shortfall of electricity. This is also because of private sector does not have a major role in this segment.

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Threats
Coordination: Power sector faces challenges such as difficulties in debt collection, procedural delays and need for improved coordination between various governmental agencies.

Distribution Sector: Pace of opening up distribution sector to private sector is slow.

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COMPETITOR ANALYSIS

1. NDMC (New Delhi Municipal Council)

Delhi Set-up had recommended that a fresh law governing NDMC should be passed by the Parliament for proper organization and functioning of the New Delhi Municipal Council. Consequent upon enforcement of Constitution (Seventy Fourth Amendment) Act, several provisions in Punjab Municipal Act, 1911 had to be brought in tune with Part IXA of the Constitution before 31st May, 1994. Furthermore, there were several major differences between various functional regimes prescribed under the old law governing NDMC in comparison to the Delhi Municipal Corporation Act, 1957. It was generally recognized that there was need for a greater measure of commonality in the procedure adopted by the Municipal Corporation of Delhi and the New Delhi Municipal Council in matters relating to taxation, revenue, budgeting, contracts, accounts and audits, streets and sanitation, public health, public safety and suppression of nuisances etc.

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The following were the most important objectives:

To Provide New Delhi Municipal Council area with a new legislation repealing the Punjab Municipal Act, 1911.

To bring uniformity as far as possible in building regulations, audit revenue and budgetary provisions in the Municipal Corporation of Delhi.

To harmonize the law with the Constitution (Seventy-fourth Amendment) Act, 1992 with necessary exemptions and modifications under article 143ZB of the Constitution wherever departure has had to be made from the constitutional provisions

2. BSES Yamuna Power Limited (BYPL)

BSES Yamuna Power Limited (BYPL), a joint venture between BSES Limited and the government of NCT of Delhi had taken over the distribution of electric power in the area of East & Central Delhi from Delhi Vidyut Board (DVB) on July 2002.

For administrative purpose, BYPL is split into 14 business units on the basis of number of consumers. The various consumer touch points include Consumer Care Centers, Complaint Centers, Consumer Call Centers to facilitate commercial process such as new connection, billing related queries, solving the Complaints etc,.

BYPL distributes power to an area spread over 200 sq kms with a population density of 4230 per sq km. Its 10.4lakh customers are spread over 14 districts across Central and East areas including Chandni Chowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road,

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Karkardooma, Krishna Nagar, Laxmi Nagar, Mayur Vihar, Yamuna Vihar, Nand Nagri and Karawal Nagar.

3. BSES Rajdhani Power Limited (BRPL)

BRPL is limited company incorporated under the companies Act 1956 and engaged in the business of distribution of electricity within its licensed area in NCT of Delhi.

BRPL is soliciting bids for supply of energy from Inter State Sources through traders who have been given interstate energy trading license by the CERC, State Electricity Boards, State Electricity Utilities, States, Generators, and IPPs & CPPs to enable BRPL to meet demand/requirement of power in Delhi.

BRPL distributes power to an area spread over 750 sq. km with a population density of 1360 per sq km. Its over 12.2 lakh customers are spread in 19 districts across South and West areas including Alaknanda, Khanpur, Vasant Kunj, Saket, Nehru Place, Nizamuddin, Sarita Vihar, Hauz Khas, R K Puram, Janakpuri, Najafgargh, Nangloi, Mundka, Punjabi Bagh, Tagore Garden, Vikas Puri, Palam and Dwarka.

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CHAPTER 2

LITERATURE REVIEW

Literature review Scope of the study Methodology

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LITERATURE REVIEW

WHAT IS CUSTOMER SATISFACTION

Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."

-By Giese and Cote

A DEFINITIONAL FRAMEWORK FOR CONSUMER SATISFACTION

Based on the insights provided by the literature review and interviews, we propose a framework for developing context-specific definitions of consumer satisfaction. This framework is not a generic definition of satisfaction. As noted above, innumerable contextual variables will affect how satisfaction is viewed. As such, any generic definition of satisfaction will be subject to chameleon effects. Rather than presenting a generic definition of satisfaction, we identify the conceptual domain of satisfaction, delineate specific components necessary for any meaningful definition of satisfaction, and outline a process for developing context-specific definitions that can be compared across studies.

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As concluded by the literature review and validated by the group and personal interview data, consumer satisfaction is: A summary affective response of varying intensity. The exact type of affective response and the level of intensity likely to be experienced must be explicitly defined by a researcher depending on the context of interest. With a time-specific point of determination and limited duration. The researcher should select the point of determination most relevant for the research questions and identify the likely duration of the summary response. It is reasonable to expect that consumers may consciously determine their satisfaction response when asked by a researcher; therefore, timing is most critical to ascertain the most accurate, well-formed response. Directed toward focal aspects of product acquisition and/or consumption. The researcher should identify the focus of interest based on the managerial or research question they face. This may include a broad or narrow range of acquisition or consumption activities/issues.

By fleshing out these components, researchers should be able to develop specific definitions that are conceptually richer and empirically more useful than previous definitions. To develop context-relevant definitions and measures, researchers must be able to identify both the questions they are interested in answering and some basic information about the setting and consumers. Specifically, the researcher will need to provide details about all three components of satisfaction.

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The Literature and Consumer Views of Satisfaction

While the literature contains significant differences in the definition of satisfaction, all the definitions share some common elements. When examined as a whole, three general components can be identified: 1) consumer satisfaction is a response (emotional or cognitive); 2) the response pertains to a particular focus (expectations, product, consumption experience, etc.); and 3) the response occurs at a particular time (after consumption, after choice, based on accumulated experience, etc). Consumer responses followed a general pattern similar to the literature. Satisfaction was comprised of three basic components, a response pertaining to a particular focus determined at a particular time.

Response: Type and Intensity - Consumer satisfaction has been typically conceptualized as either an emotional or cognitive response. More recent satisfaction definitions concede an emotional response. The emotional basis for satisfaction is confirmed by the consumer responses. 77.3% of group interview responses specifically used affective responses to describe satisfaction and 64% of the personal interviewees actually changed the question term "satisfaction" to more affective terms. Both the literature and consumers also recognize that this affective response varies in intensity depending on the situation. Response intensity refers to the strength of the satisfaction response, ranging from strong to weak. Terms such as, "like love," "excited," "euphoria," "thrilled," "very satisfied," "pleasantly surprised," "relieved," "helpless," "frustrated," "cheated," "indifferent," "relieved," "apathy," and "neutral" reveal the range of intensity. In sum, the literature and consumers both view satisfaction as a summary affective response of varying intensity.

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Focus of the Response - The focus identifies the object of a consumers satisfaction and usually entails comparing performance to some standard. This standard can vary from very specific to more general standards. There are often multiple foci to which these various standards are directed including the product, consumption, purchase decision, salesperson, or store/acquisition. The determination of an appropriate focus for satisfaction varies from context to context. However, without a clear focus, any definition of satisfaction would have little meaning since interpretation of the construct would vary from person to person (chameleon effects). Timing of the Response - It is generally accepted that consumer satisfaction is a postpurchase phenomenon, yet a number of subtle differences exist in this perspective. The purchase decision may be evaluated after choice, but prior to the actual purchase of the product. Consumer satisfaction may occur prior to choice or even in the absence of purchase or choice (e.g., dissatisfied with out-of-town supermarkets, which were never patronized, because they caused a local store to close). It has even been argued that none of the above time frames is appropriate since satisfaction can vary dramatically over time and satisfaction is only determined at the time the evaluation occurs. The consumer responses reinforced this varied timing aspect of satisfaction. In addition, the consumers discussed the duration of satisfaction, which refers to how long a particular satisfaction response lasts.

Dissatisfaction - The literature has taken two approaches to conceptualizing and operationalizing the dissatisfaction construct. Consumer dissatisfaction is portrayed as the bipolar opposite of satisfaction; or consumer satisfaction and dissatisfaction are viewed as two different dimensions. Since the literature does not provide a clear conceptualization of dissatisfaction, we turned to consumer perceptions. Consumers suggest that dissatisfaction is still comprised of the three components of the definitional framework: affective response; focus; and timing. However, the consumer data did not help resolve the dimensionality issue. We speculate that the apparent

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dimensionality of satisfaction might be understood by examining the focus of satisfaction and dissatisfaction. Consumers were sometimes satisfied with one aspect of the choice/consumption experience, but dissatisfied with another aspect. In this case, satisfaction and dissatisfaction can be viewed as different dimensions.

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CHAPTER 3

RESEARCH METHODOLOGY

Scope of the study Research methodology

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SCOPE OF THE STUDY

To find out the satisfaction level of customers towards the quality services provided by NDPL.

Methods of data collection

SOURCES OF DATA
The sources of data may be classified into (a) primary sources and (b) secondary sources.

Primary Sources
Primary sources are original sources from which the researcher directly collects data that have not been previously collected, e.g., collection of data directly by the researcher on brand awareness, brand preference, brand loyalty and other aspects of consumer behaviour from a sample of consumers by interviewing them.

Secondary Sources
These are sources containing data that have been collected and compiled for another purpose. The secondary sources consist of readily available compendia and already compiled statistical statements 23

The primary source of data collection

Through QUESTIONAIRES. The questionnaire was filled by the respondents.

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CHAPTER 4

DATA ANALYSIS AND FINDINGS

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Data Analysis

Q1 who is your electricity service provider

40 35 30 25 20 15 10 5 0 NDPL BSES rajdhani BSES yamuna NDMC

Options NDPL BSES rajdhani BSES Yamuna NDMC TOTAL

No. of respondents 10 4 4 7 25

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Q2 Overall quality rating

8 7 6 5 4 3 2 1 0 Excellent Very good Average Poor Don't know

Options Excellent Very good Average Poor Dont know TOTAL

No. of respondents 6 3 7 4 5 25

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Q4 How many power cuts in a day

1 per day 2-3 per day More than 3 per day Dont know

Options 1 per day 2-3 per day More than 3 per day Dont know Total

No. of respondents 12 8 3 2 25

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Q5 how much load of electricity are you using and how much you need

9 8 7 6 5 4 3 2 1 0 0-2 KW 2-4 KW 4-6 KW more than 6 KW

Options 0-2 KW 2-4 KW 4-6 KW More than 6 KW TOTAL

No. of respondents 6 5 9 5 25

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Q6 Average duration of a power cut

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0 less than 1/2 hour 1/2-1 hour 1-2 hour 2-6 hour

Options Less than hour -1 hour 1-2 hour 2-6 hour TOTAL

No. of respondents 11 8 3 3 25

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Q7 What is the average hour of Outage Experienced in a Month

18 16 14 12 10 8 6 4 2 0 0-15 hours 15-30 hours 30-90 hours more than 90 hours Series 1

Options 0-15 hours 15-30 hpurs 30-90 hours More than 90 hours TOTAL

No. of respondents 18 4 3 0 25

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Q8 How much are you paying for electricity per unit in approx

18 16 14 12 10 8 6 4 2 0 Rs 1-2 Rs 2-4 Rs 4-6 Rs 6-8

Options Rs 1to2 Rs 2to4 Rs 4to6 Rs 6to8 TOTAL

No. of respondents 4 17 3 1 25

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Q9 Would you still continue with your current service provider

yes no

Options

No. of respondents

Yes

No

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Total

25

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A) Perception about NDPL service

6 5 4 3 2 1 0 Excellent Very good Average Poor Don't know

Options

No. of respondents

Excellent

Very good

Average

Poor

Dont know

TOTAL

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B) Will you be willing to sign a long term contract with NDPL

yes no

Options

No. of respondents

Yes

No

TOTAL

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CHAPTER 5

CONCLUSION AND SUGGESTION

Conclusion Finding and Conclusion

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Conclusion

The present report was an attempt to study the choice of people in Delhi with regard to the Electricity services used by them. The chief objective was to study the customer satisfaction.

In order to achieve targets, collected a sample of 25 persons. The primary data is collected through a structured questionnaire.

Analysis of data revealed that mostly the customers are satisfied with the electricity services they are using and 32% people are willing to change the service provider if they get an option to change it.

And in the case of paying extra or signing a long term contract for better service some are willing to do that and some are not.

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Findings and Recommendations

FINDINGS
Some findings which we observed after conducting the survey are:

1. As more than 60 % consumers are satisfied with their service provider so, only 32% are willing to change their service provider if they get an option to do it.

2. Not much consumers are willing to pay extra or sign a contract for a better service they prefer to get a better service at a lower or same price.

3. Almost every consumer uses an inverter as an alternative source of energy and few use Generators as an alternative.

4. The average load which is required by an individual is 5KW and almost 87% of the total sample do not want increase their load in the future.

5. We also found that more than 87% of customers do not require more load in the coming future
6. 75% of customers rated excellent for quality of electricity service provided by NDPL.

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RECOMMENDATION

As our main objective was to find out the customers who are willing to change their service provider, we have analyzed that more than 30% customers are willing to do that. And as there are potential customers company needs to make the people aware about the quality of services and tariff in so that the customers choose their company and they can do this by:

1. Doing promotions in area where they are not providing service

2. Advertising about their company through print media and TV advertisements

3. Putting up banners in different areas

4. Promoting the company services through Radio.

The company can also make people more aware about the benefits which they can avail if they are willing to pay premium for a better electricity service and use this as a promotion tool. And the can also get a better reliability.

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QUESTIONNAIRE

Name:________________________ Address:_______________________________________

City:_________________________ Occupation:____________________________________

Pin No:______________________ Post:

_______________________________________

Age: _________________________ Ph No: _______________________________________

1) Who is your electricity service provider? (Please Tick) 1) NDPL 3) BSES Yamuna 2) BSES Rajdhani 4) NDMC

2) Let us consider the overall quality of services offered by your electricity company.please tell how you would rate the overall quality of the services offered. (Please Tick)

1) Excellent 4) Poor

2) Very Good 5) Dont know

3) Average

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3) How many power cuts/outages do you experience? (Please Tick) 1) 1 per day 3) More than 3 per day 2) 2 to 3 per day 4) Dont know/Cant say

4) How much load of electricity are you using? 1) 0 2 KW 3) 4 6 KW 2) 2 4 KW 4) more than 6 KW

5) Could you tell me the average duration of a power cut? (Please Tick) 1) Less than hour 3) 1 2 hours 2) - 1 hours 4) 2 6 hours

6) From what alternative source do you avail power backup during power cuts/outages? (Please Tick) 1) DG (Diesel Generator) 3) UPS 2) Inverter 4) Others (Specify)_______

7) What is the average cost of electricity you think you pay based on your electricity tariff and running of DG sets per month? (Please Tick) 1) 2 to 3 Rs 3) 6 to 7 Rs 2) 4 to 5 Rs 4) Greater than 7 Rs

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8) What is the average hour of Outage Experienced in a Month? (Please Tick) 1) 0 to 15 hours 3) 30 to 90 hours 2) 15 to 30 hours 4) more than 90 hours

9) How much are you paying for electricity per Unit in approx? 1) Rs 1 to 2 3) Rs 4 to 6 2) Rs 2 to 4 4) Rs 6 to 8

10) If you have an option of having more than one electricity company to choose from, Would you still continue with your current service provider? 1) Yes 2) No

If your answer is no to previous question than continue

A) What is your perception about the quality of electricity service provided by NDPL? 1) Excellent 2) Very Good 3) Average

4) Poor

5) Dont know

B) If you are to pay a premium for higher reliability of power, will you take that option? (Please Tick) 1) Yes 2) No

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C) Will you be willing to sign a long term contract with NDPL for improving reliability of a person? (Please Tick) 1) Yes 2) No

D) What is the price you would be willing to pay on an average for 100% reliable power? (Please express in Rs.) ? _____________________________

E) Do you plan add new units/increase load within the next two years? (Please Tick) 1) Yes 2) No

F) If answer to above is yes, what is the increase expected

MW Addition_____________

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BIBLIOGRAPHY

BOOKS AND REFERENCE

Marketing management

AUTHOR
T N CHABRA(1999)

NEWSPAPER:
Hindustan times Times of India Economic Times

INTERNET:

http://www.ndpl.com/ http://www.bsesdelhi.com/ http://www.pgvcl.com/ http://www.derc.gov.in/

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