Economics Term Project-1

8/3/2019 Economics Term Project-1

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Micro Economics Term Project

PRODUCTION STRUCTURE

OF INDIAN POWER SECTOR

SUBMITTED TO

Prof. Swati Jain

FacultyManagerial Economics

ICFAI Business School, Hyderabad

SUBMITTED BY

Ishan Goyal 08BSHYD0308Meenakshi Munjal 08BSHYD0435Piyush Choraria 08BSHYD0536

Vineet 08BSHYD0940


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CONTENTS

Pg. No.

1. INTRODUCTION.......12. OBJECTIVES.... ..2

2.1The Production Structure of Indian Power Sector.....22.1.1 Present Power Scenario......2

2.2Efficiency of the Power Generation Facilities.......32.2.1 Problems....4

2.2.1.1Inadequate utilization processes......42.2.1.2Lack of optimum utilization of generation capacity....4

2.3Detailed analyses for the contribution of Public & Private sectors...............................52.3.1.1Public Sector................................................................................................5

2.3.1.1.1

NTPC2.3.1.1.2 BHEL2.3.1.1.3 REC2.3.1.1.4 Tarapore Atomic Power Station

2.3.1.2Private sector................................................................................................62.3.1.2.1 LANCO Industries2.3.1.2.2 Reliance Energy2.3.1.2.3 TATA Power2.3.1.2.4 Torrent Power

2.4Strategies fordealing with global warming and pollution.............................................72.5Government policies affecting power generation in India.............................................72.6Demand-Supply Analysis of Power in India.....................................................8

2.6.1 Fiscal Year 07...........................................................................82.7Problems Related to Acquisition of Raw Material................................................8

2.7.1.1Land Acquisition......................................................................82.7.1.2Non-uniformity of Energy Infrastructure.....................................92.7.1.3Increasing Power Capital Cost Indices....................................92.7.1.4Stringent Rules of DGFT.........................................................9

3. HYPOTHESES..................................................................................................................103.1Increasing Growth of Indian Power sector will increase theIndex for Industrial

Production..................................................................................................10

3.2Increase in cost of raw material and transportation will increase the productionof cost of power...............................................................................................11

3.3Technology and manufacturing equipments in Indian Power Sector are lessefficient as compared to China........................................................................11

3.3.1 Projects acquired by Chinese Players..................................................12


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3.4Contribution of Nuclear Power in Indian Power Sector as a result of theongoing Indo-US nuclear Deal will enhance the power production............12

3.4.1 Problems..............................................................................................123.4.2 Current Status...........................................................................................133.4.3 Indo-US Nuclear Deal..........................................................................14

4. METHODOLOGY........................................................................................164.1Cross-Trade Analysis...........................................................................................16

4.1.1 SAREC4.1.2 IEX

4.2Recommendations for maximization of output and minimization input cost inorder to increase efficiency..............................................................................16

4.3The direct dependency of industrial growth on the power sector........................174.4Management of Distribution Privatization...................................................174.5

Power generation by NTPC and Coal India Limited...................................19

5. CONCLUSION........................................................................................... ...206. LITERATURE REVIEW..............................................................................217. REFERENCES


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ACKNOWLEDGEMENT

At the outset we are thankful to Dr. Swati Jain, Faculty, Economics Department, ICFAI

Business School, Hyderabad for allowing us to undertake and complete the project assigned

successfully, and for her valuable guidance and continuous supervision.

At the end we would like to express our warm regards to all those who helped us directly or

indirectly in completing our project.

Ishan Goyal 08BSHYD0308

Minakshi Munjal 08BSHYD0435

Piyush Choraria 08BSHYD0536

Vineet 08BSHYD0940


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REFERENCES

The Hindu, June 04, 2008 The Hindu, August 28,2008 How the deal will Impact our Nuclear Capabilities by J.K.Sharma in The Economic

Times, 1 August 2008

A series of articles by Dr. Subroto Roy in The Statesman dated from March 2006 to July2008 (http://www.pugwashindia.org/article_detail.asp?aid=57)

The India-US Nuclear Deal and its Implications for Indian Nuclear Capability byR.Rajaraman, Emeritus Professor of Physics, Jawaharlal Nehru University, New Delhi

(http://independentindian.com/category/india-us-nuclear-deal/)

PTI, 17 August 2008(http://www.ntpc.co.in/cms/index.php) http://www.electricityindia.com/powertrading.html http://www.mahaurja.com/pdf/powerscen.pdf http://www.newswiretoday.com/news/7962/ www.indiastat.com http://www.coalindia.nic.in/customer3.htm http://www.ntpc.co.in http://www.bhel.com/ http://recindia.nic.in/ http://www.npcil.org/docs/taps.htm http://www.lancogroup.com/groups/kpower/kpower.html http://www.rel.co.in http://www.tatapower.com/ http://www.torrentpower.com/ http://www.indiacatalog.com/web_directory/electrical/electrical.html) http://www.newswiretoday.com/news/7962/ http://www.tribuneindia.com/2005/specials/tribune_125/main12.htm http://www.energylineindia.com/ http://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1 http://www.nlcindia.co.in/ http://www.nlcindia.co.in/about/about_01eindex.htm http://www.livemint.com/2007/08/28002818/India-is-all-set-to-miss-its-2.html http://www.thehindubusinessline.com/2008/08/12/stories/2008081251500300.htm

http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cms

http://www.supplychain.cn/en/art/?1254 http://www.domain-b.com/organisation/sarec/20050222_support.htm http://www.thehindubusinessline.com/2007/11/03/stories/2007110350311400.htm www.psiru.org http://www.thehindubusinessline.com/2005/12/07/stories/2005120702921900.htm http://www.expressindia.com/news/ie/daily/19981127/33150124.html
http://www.pugwashindia.org/article_detail.asp?aid=57http://independentindian.com/category/india-us-nuclear-deal/http://independentindian.com/category/india-us-nuclear-deal/http://www.ntpc.co.in/cms/index.phphttp://www.electricityindia.com/powertrading.htmlhttp://www.mahaurja.com/pdf/powerscen.pdfhttp://www.newswiretoday.com/news/7962/http://www.indiastat.com/http://www.coalindia.nic.in/customer3.htmhttp://www.ntpc.co.in/http://www.bhel.com/http://recindia.nic.in/http://www.npcil.org/docs/taps.htmhttp://www.lancogroup.com/groups/kpower/kpower.htmlhttp://www.rel.co.in/http://www.tatapower.com/http://www.torrentpower.com/http://www.indiacatalog.com/web_directory/electrical/electrical.htmlhttp://www.newswiretoday.com/news/7962/http://www.tribuneindia.com/2005/specials/tribune_125/main12.htmhttp://www.energylineindia.com/http://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1http://www.nlcindia.co.in/http://www.nlcindia.co.in/about/about_01eindex.htmhttp://www.livemint.com/2007/08/28002818/India-is-all-set-to-miss-its-2.htmlhttp://www.thehindubusinessline.com/2008/08/12/stories/2008081251500300.htmhttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cmshttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cmshttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cmshttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cmshttp://www.supplychain.cn/en/art/?1254http://www.domain-b.com/organisation/sarec/20050222_support.htmhttp://www.thehindubusinessline.com/2007/11/03/stories/2007110350311400.htmhttp://www.psiru.org/http://www.thehindubusinessline.com/2005/12/07/stories/2005120702921900.htmhttp://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://www.thehindubusinessline.com/2005/12/07/stories/2005120702921900.htmhttp://www.psiru.org/http://www.thehindubusinessline.com/2007/11/03/stories/2007110350311400.htmhttp://www.domain-b.com/organisation/sarec/20050222_support.htmhttp://www.supplychain.cn/en/art/?1254http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cmshttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/China_Light_and_Power_to_develop_1320_MW_project_in_Haryana/rssarticleshow/3271209.cmshttp://www.thehindubusinessline.com/2008/08/12/stories/2008081251500300.htmhttp://www.livemint.com/2007/08/28002818/India-is-all-set-to-miss-its-2.htmlhttp://www.nlcindia.co.in/about/about_01eindex.htmhttp://www.nlcindia.co.in/http://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1http://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1http://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1http://www.energylineindia.com/http://www.tribuneindia.com/2005/specials/tribune_125/main12.htmhttp://www.newswiretoday.com/news/7962/http://www.indiacatalog.com/web_directory/electrical/electrical.htmlhttp://www.torrentpower.com/http://www.tatapower.com/http://www.rel.co.in/http://www.lancogroup.com/groups/kpower/kpower.htmlhttp://www.npcil.org/docs/taps.htmhttp://recindia.nic.in/http://www.bhel.com/http://www.ntpc.co.in/http://www.coalindia.nic.in/customer3.htmhttp://www.indiastat.com/http://www.newswiretoday.com/news/7962/http://www.mahaurja.com/pdf/powerscen.pdfhttp://www.electricityindia.com/powertrading.htmlhttp://www.ntpc.co.in/cms/index.phphttp://independentindian.com/category/india-us-nuclear-deal/http://www.pugwashindia.org/article_detail.asp?aid=57


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http://www.uppcl.org/th_dev_policy2008.pdf http://meghalaya.nic.in/powerpolicy/generation.html http://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1 http://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-

likely-to-miss-11th-plan-targets-assocham.html

http://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/ http://mospi.nic.in/iip_table4.htm http://mediasyndicate.com/index.php?name=News&file=article&sid=4675 http://www.mpra.ub.uni-muenchen.de/1693/ http://www.teriin.org/opet/reports/tpp.pdf http://www.plant-maintenance.com/articles/cbm_coal_handling.pdf
http://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://www.expressindia.com/news/ie/daily/19981127/33150124.htmlhttp://meghalaya.nic.in/powerpolicy/generation.htmlhttp://meghalaya.nic.in/powerpolicy/generation.htmlhttp://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1http://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-likely-to-miss-11th-plan-targets-assocham.htmlhttp://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-likely-to-miss-11th-plan-targets-assocham.htmlhttp://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-likely-to-miss-11th-plan-targets-assocham.htmlhttp://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-likely-to-miss-11th-plan-targets-assocham.htmlhttp://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/http://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/http://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/http://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/http://mospi.nic.in/iip_table4.htmhttp://mediasyndicate.com/index.php?name=News&file=article&sid=4675http://www.mpra.ub.uni-muenchen.de/1693/http://www.teriin.org/opet/reports/tpp.pdfhttp://www.plant-maintenance.com/articles/cbm_coal_handling.pdfhttp://www.plant-maintenance.com/articles/cbm_coal_handling.pdfhttp://www.teriin.org/opet/reports/tpp.pdfhttp://www.mpra.ub.uni-muenchen.de/1693/http://mediasyndicate.com/index.php?name=News&file=article&sid=4675http://mospi.nic.in/iip_table4.htmhttp://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/http://www.financialexpress.com/news/Index-of-Industrial-production-up-to-10-7/227567/http://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-likely-to-miss-11th-plan-targets-assocham.htmlhttp://smetimes.tradeindia.com/smetimes/news/industry/2008/Aug/01/power-sector-likely-to-miss-11th-plan-targets-assocham.htmlhttp://www.livemint.com/2008/08/01165616/Rising-costs-to-keep-power-sec.html?d=1http://meghalaya.nic.in/powerpolicy/generation.html

Economics Term Project-1

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