Document Sample
					      PROJECT WORK



         AT IIM-L
            Group Members
•   A.K.Asthana
•   R. N.Banerjee
•   S.N.Sahay
•   M.L.Sood
•   R.S.Gupta
•   Amarjit

• We are grateful to Prof.M.Akbar for his
  valuable guidance for preparation of the
                   The opportunity
 Demand –supply gap

Demand:peak2003         Supply             Gap
                        2003               2003
82000 MW                71260 MW           10740 MW

1430 MU /day            1325 MU/day        105 MU/ day

Projected demand 2012   Projected supply   Gap 2012
157000 mw               150000 mw          7000 MW

2800 MU/ day            2700 MU/day        100 MU/ day
          Business Existing
• Peak demand per day        = 1430 MU
•                           = 143 Cr unit
• Cost per day @ Rs. 2 p. u.=Rs. 286 Cr
• Total for one year         =Rs.1 lac Cr
  (approx )
• Likely transaction by 2012 = Rs. 2 lac Cr
• The basic problem will not be the demand and
  supply but the quality of power would matter
• Our opportunity is to secure reliable supply, use
  national grid and supply initially directly to major
  customers and then retail consumers.
• The Project group has focused on this need and
  has come up with an idea for direct distribution.
• This will work for Power Grid because it has
  competence and infrastructure to deliver quality
  power, which other major suppliers do not have.
        The Value Proposition
• We would offer our customers uninterrupted
  quality supply of power at affordable prices
• The entry can be made in phased manner according to
  geographical areas where demand for quality power is
  high which will make early financial returns possible.
• This can be accomplished through internal resources
  and competence and better through alliance partners to
  reduce the risk and implementation time beside
  complementing our own skills in distribution area. The
  possible partners could be NTPC or healthy SEBs,
  Private players
• Selection of areas to be done after identifying potential
  customers viz Railways, leading industries , Private and
  Govt Installations including other customers.
The benefits of the Innovation Strategy
• This will add to the growth of organization , as well as
  career progression for existing managers and

• In the present scenario , competitive situation is likely to
  worsen from a near monopoly market to highly contested
  market. The change is necessary on the part of the
  organization in order to survive and grow.
• The consumers need quality power but are currently
  deprived because of mismanagement of the existing
  resources. These consumers will be happy to pay higher
  prices for quality power
             The timing is of essence
• The early move and timely control of direct distribution
  will determine the future profitability of power companies
• POWERGRID can begin in right earnest to plan and
  implement the strategy .
• The benefit to consumers must start at the earliest. This
  will improve their lifestyle and will also improve economic
• There would be increased productivity for POWERGRID
  , as it would be able to reduce losses in the area of
  transmission and distribution. We bring these losses
  down from 42% to 10-12%- a net utilizations of additional
   We have to overcome the resistance to

• Whenever a change is proposed, both external
  as well internal customers resist the change ,
  which needs to be addressed by adopting
  proper methodological approach.
• To improve productivity we would have to
  develop employee and managers skills through
  training and development.
• There may be resistance to change. Normally,
  people are afraid of unknown. Most people
  suffer from inertia and see change as
  threatening to existing resources and status.
     How the success is guaranteed?
• POWERGRID has high brand value to build up
  confidence amongst users.
• Requisite expertise exists.
• We shall be committed to clients to achieve
  service excellence.
• We shall be better listeners to our consumers
  and shall be responsive.
• We shall be accountable.
• We shall stand guarantee for high quality of
• Operational efficiency will be the driving force.

• As each consumer is different, they would be
  handled differently every minutes of the hour,
  every hours of the day and every day of the
• A sense would be created amongst the
  consumers that they would not go for any
  suppliers other than the POWERGRID.
• Consumers would be inspired to experience
  advantage of involvement of POWERGRID
  through a well cascaded communication
• Employees would be made to recognize the need of
  change to earn higher returns
• This has to be demonstrated by producing tangible
  analysis of costs and benefits arising out of this changed
• Involving people in analysis and change process would
  help us get their commitment to the proposed change.
  This would reduce the apprehensions.
• Employees would be made to understand that they will
  have better career option/growth.
• A sense of pride shall be created among the employees.
• There is a need to make employees realize that change
  also bring opportunities.
       Billing and Revenue Realization

•Augmentation of existing scheme would be done by
the state of the art technology: We would install
electronic meters to provide fairness in billing.
•The meters would be installed both at the supply
point and the consumption site to monitor any losses
that might be plugged in
•We would also carry out schemes through which
people can use prepaid cards which would be made
available through the local distribution partners