Bidding Dilemma at Transmission Solution Company
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Case Code: PROM014 Case Length: 14 pages Period: 2013 Pub Date: 2013 Teaching Note: Available |
Price: Rs.400 Organization: Valor India Industry: Energy Countries: India Themes: Project Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Transmission Solution Need in India
An efficient power supply system is a key requirement for a nation's economic growth and for its citizens to enjoy a good quality of life. Assured availability of quality power at a reasonable cost will not only act as a catalyst in the socio-economic development of the country, but will also enhance the global competitiveness of the industrial sector. Besides, it will lead to enhanced employment generation and per capita income levels. The rapid development of a robust and healthy domestic electrical equipment (EE) industry that supports the complete value chain in power generation, transmission, and distribution, is not only crucial for the economy, but is also of strategic importance for any country.
The Indian EE industry, which comprises around 90% Small and Medium Enterprises, grew close to Rs. 110,0000 million in 2010-11 . The industry with its diversified, mature, and established manufacturing base, had the potential to meet the current as well as future domestic and export demands.
Ever since the liberalization of the Indian economy in 1991, the economic progress of the country was phenomenal, until the recent global economic meltdown pushed it onto the back foot. Even then, the growth determining indices, such as GDP, GNP etc. are way better than those of most of the world's superpowers. This shows the economic integrity and the depth in the quality and quantity of the resources running the economy. Some of the important industries for any economy are cement, steel, chemicals, power, textiles, and services along with a huge array of small scale industries.
To meet this increasing demand for their goods and services, the companies started increasing their production capacities, which meant a higher requirement for power and energy and a higher need for the transmission solutions. As of 2011, power generation in India was controlled by players that could be divided into three categories: central government, state government, and the private sector players....
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