Assignment no 2

9/28/2011

Transmission line case study – Part 1

Group 5 Members: Ankush || Arun || Krishna || Murali || Nikhil

The authorities that primarily need to clear the project would include the Ministry of Environment and Forestry. development of lines and distribution costs need to be identified. various fund providers need to be brought in perspective. the cost of land acquisition. To this effect. the optimum path to lay the transmission lines needs to be identified. a credit rating report needs to be submitted along with a financial plan detailing the future cash flows. the displacement of population around and so on. a basic engineering design needs to be developed. To satiate the requirements of these companies. the local authorities. the permissions for installation of transmission equipment need to be obtained. A cost benefit analysis would help reach a suitable conclusion regarding the project Planning the optimum location for the layout of the transmission lines Having determined that the project is feasible. . Some of them being. the effect of installation of the lines on the environment around. The prime objective of such a project should be to try and have a greater reach at lower cost to maximize the value of the revenue stream. the state regulatory commission among others. there are several constraints that need to be taken into consideration. the Ministry of Power. state/central government would be among those who would be the first to be approached for funding. The details of various costs incurred by the company in terms of installation of infrastructure.The various major steps that need to be taken before the actual tendering process can be initiated are:  Feasibility study of the project  Planning the optimum location for the layout of the transmission lines  Seeking approval from civic authorities and government  Securing funds for the project  Inviting tenders through notifications Feasibility study of the project The feasibility of the project has to be studied before it is embarked upon. Commercial banks. Alongside this. To determine the layout. Seeking approval from civic authorities and government Once the design is in place. power financing companies. Securing funds for the project To secure the funds. the expected number of consumers over a period of time and the revenue stream generated from them also need to be discerned.

Auditing Authority: Will audit the workings of the estimates presented at various levels for further clearance and so is clearly and important stakeholder 9. 10. State government: Stake in the development of the local area for effects like employment. Central Government: Has stake in development of far-flung areas and will have to manage conflict between other politically motivated opponents.Inviting tenders through notifications Contingency plans need to be developed to take care of most of the emergencies that may arise. MoEF: Since the transmission line passes through forest land. 11. requiring attention of the municipal authority 13. 2. etc. Supreme Court: Permission for using land under reserved area comes directly from the Supreme Court. End Consumers: Will finally bear the cost of the entire project by paying higher tariffs. land acquisition 7. tenders are called for in major dailies across the country. STAKEHOLDERS ANALYSIS 1. the ministry has to look at the ecological impact of the project and so can stall the project on grounds of clearance. Bidding contractors: With every bidder wanting to win. the project is suitably awarded to the contractors whose offer is deemed to be the most appropriate. Municipality: Some part of transmission lines might pass through municipal areas. Discom: Will help in evaluating the feasibility of project through metrics like end cost to consumer 4. For this. 5. the losers are bound to try to make the project execution more difficult. Once the bids are submitted. Transmission Company: The company that is setting up transmission line will be at the helm of affairs. tenders need to be invited from contractors for the implementation of the project. With the funds and other plans in place. Generating Company: Will dictate the technical details regarding capacity required. People affected by land acquisition 12. 6. Financing Company: Will provide monetary support based on economic viability and scope of social development of the project 8. 3. .

consideration of ecological and social impact. Feasibility at various stages: Technical. 2. Comparison between our analysis and the one given by Transco company employees 1) Economic and Financial feasibility report has been covered in both analysis. Genco Transco Central Govt. 3. . Tendering Process: To prevent any future litigation on the fairness of the tendering project. Discom High Supreme Court MoEF Auditing Authority Ruling political party Financing Company Power Regulatory commission End Consumer Bidding Contractors Industy consumers Municipality People of country People affected by land acquisition People of the state Low Employees and Families of Transco Low Interest High The project can face resistance from/at the following processes of the project: 1. financial feasibility. hurdle rates and interest which are not explicitly mentioned in our report but are implicitly touched upon.State Govt. the transmission company should establish a transparent process and clear guidelines. They have additionally mentioned points regarding cost of capital. 4. Land acquisition: The Transco needs to give appropriate notice and follow all legal regulation while acquiring land. At all such stages the adequate procedures would have to be identified and consequently appropriate solution would have to be worked out with the stakeholders. It should take proper steps to ensure fair compensation and work towards social and economic development of the affected people. Political will to execute the project with clashes between Central and State Government.

2) The approval process has been explained in details in both the analysis. Also they have given a detailed description of forest approvals and typical delegation of power for grant of permission. Also details regarding width of the corridor is discussed by them. The stakeholders more or less match with the analysis given and also with respect to the degree of influence. 4) Stakeholder analysis has been done by us on a Power-Interest matrix. Their report talks about special approval from railway authorities and Aviation authorities which have not been considered by us. . interest and power of the respective stakeholders. 3) Funding of the project has been mentioned in both the analysis and more or less similar points are considered.

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