Competitive Advantage
ADVANTAGES OF PRIVATE PARTIES( EG: RELIANCE POWER)
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
Strengths
Diverse Workforce
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
Strengths
Diverse Workforce