1.Private Parties can bargain for prices with suppliers.
2.They are using Chinese Power Equipments.
3.The Limiting Factor of NTPC in competitive bidding are CVC Guidelines which do not allow Commercial secrecy of bidding offers submitted to NTPC by the vendors.
NTPC Bidding Process
Before submitting bids for the power projects, NTPC invites bids from its vendors who supply equipment for the project. NTPC decides its bid on the basis of lowest available price of power equipment supplied by vendors. According to CVC Guidelines, this is an open and transparent process and no secrecy can be maintained by any public sector company.
4.Cost of Equipment quoted by BHEL for the project was high. 5. RPL bought stakes in overseas coal mines and wanted to enter the shipping business to start selling coal in India. 6.RPL has a project portfolio of 32,200 MW. But it is yet to start producing power.
ADVANTAGES OF NTPC OVER PRIVATE PARTIES
1.Usually in any bidding, bidder is expected to have experience in the work. But Lanco Group which won the UMPP, Sasan had no proven record. It later got disqualified due to overseas partner failing. So the contract was given to Reliance Power which again has no experience in power plant except for being a utilities provider through acquisition of BSES Ltd.
2.Earlier Procedure for Power plant acquisition
PPA wherein utilities will declare their purchase price for power generated and which was guaranteed by Govt.
Now, there is bidding based on estimated cost of power generated.
3.Aspect of Pricing – Price just for the sake of getting a power plant and put entire operation in problem or do it logically is the question. 4.NTPC is a ethical company. It will follow norms and if issues are addressed then no one can compete with NTPC. 5.Better be a company of values rather than Company of Success.
SWOT OF RELIANCE ENERGY
Implements GIS System
Loyalty and Trustworthiness
Awarded ISO9001:2000 certification for generation, transmission and distribution of electricity. ISO:14001 for environment management
Involvement at all levels with effective creation of policies, vision, mission, values, goals and support, communicated and implemented throughout the organization. Training of Senior executives in Managing for Quality.
Bearing Significant Losses
Limited Operations only in metros
Setting up 3300 MW gas based power plant at D.A Energy City at Dadri in UP and Gas Feed from KG-06 off AP. Various projects in generation, transmission, distribution and trading of power. Lowest level of per capita power consumption in India.
Financial threat from lenders.
Competition from Competitors and Government Controlled Organisation.
Focussed on integration
“ From Well head to Wall Socket”
Pillars of REL Growth Strategy’
1.Generation of Power
2.Distribution of Power
3.Transmission of Power
4.Trading of Power
Bundled services to maximize customer satisfaction
Integrate employees family into a larger “Corporate Family” through a host of welfare measures like student scholarship scheme and cultural functions, sports and recreational supports, housing etc. Having satisfied and motivated employees, proud to be associated with Reliance Energy Limited with an overall feeling at having achieved “ Common Goals” through “Shared efforts” and Participation.
CURRENT POWER SCENARIO
Dominated by SEB’s
Limited participation of Private Sectors
The power sector is undergoing tremendous changes. New Technologies and business oppourtunities are redefining the very nature of the business.
NTPC has a stated goal to ……
The company aims at …….
In the coming future, it will emerge as an integrated power utility with…….
All this is possible in large measure by unleashing the latent capability of people. People...