Table of Content

TOPIC PAGE NO.

1.INTRODUCTION 2-11
1.1 Power Generation in India 2-3
1.2 Indian Power Sector Organizational Setup 4
1.3 Entry of Private Player 5-6
1.4 Development stage of power sector 6-7
1.5 Ultra Mega Power Project 7-8
1.6 Salient features of the Plant and Choice of Technology 9-10
1.7 Role of Ministry of Power 11
2.COMPANY PROFILE 12-14
2.1 Company Introduction 12
2.2 Company profile 12
2.3 Sasan Power Ltd. 13
2.4 Organizational Chart 14

3.CHALLENGES 15-18
3.1 Fuel Availability 15
3.2 Water Linkage 15
3.3 Ash Handling 15
3.4 Equipment Shortage 16
3.5 Lind Acquisition and Environmental Clearances 16
3.6 Finance 17
3.7 Manpower Shortage 17-18

4.SUPPORTIVE SERVICES & THEIR ROLE 19-50

4.1 INTERNAL SUPPORT SERVICES 20-47
4.1.1 Finance 20-21
4.1.2 Land Acquisition and Environmental Clearances 22-26
4.1.3 Fuel Procurement 27-29
4.1.4 Purchase and Procurement 30-33
4.1.5 Project Management 34-37
4.1.6 Administration 38-39
4.1.7 Information Technology 40-42
4.1.8 Human resource 43-45
4.1.9 Health and Safety 46-47
4.2 EXTERNAL SUPPORT SERVICES 48-50
4.2.1 Govt. Agencies and Regulatory Authorities 48-50

5. CONCLUSION AND SUMMARY 51

6. REFERENCES 52

INTRODUCTION

1
The GDP of Indian economy mainly takes the contribution from four sectors viz.,
Agriculture, Infrastructure, Manufacturing and Service sectors. Power sector is one of the
major contributors in the Infrastructure part. As India is the second fastest growing economy
in the world next to China, so in order to maintain and accelerate its growth, power sector
plays a crucial role. In order to achieve the vision 2020, India has to develop in all spheres.
Power being the backbone of the development, more emphasis has to be laid upon this sector.
India has a flourishing and largely indigenous power program and expects to have 20000 MW
nuclear capacities on line by 2020 and 63000 MW by 2032. India also wants to add 20000
MW by (2017-22) through solar energy under Jawaharlal Nehru National Solar Mission.
India wants to promote clean energy as a substitute to thermal energy by 2020.

Power Generation in India

Electricity generation by power utilities during 2009-10 has been targeted go up by 9.1 per
cent to 789.5 billion KWh. The growth of power generation during April-December 2009 was
about 6.0 percent as compared to about 2.7 per cent during April-December 2008. Coal based
generation of power constituted around 80% of thermal generation and around 66 per cent of
the total generation of power. The power sector is the major consumer of coal using 74 per
cent of the coal production. Coal-based generation was constrained by the shortage in
domestic supply of coal and the non-materialization of planned imports during April-
December 2009. The total consumption of coal by the power sector during the period was
271.0 million tonnes. About 16.7 million tonnes of coal was imported. Apart from bridging
the demand-supply gap, blending of imported high quality coal with high ash domestic coal
helps thermal power stations adhere to environmental stipulations of using coal with less than
34 per cent ash content.
Electricity generation in India, currently at some 600TWh annually, is set to double by next
decade, i.e. by 2020. In order to supply this extra electricity, total generating capacity should
jump by 90 GW, to 241 GW, with an increased emphasis on nuclear, clean coal and
renewable, including solar and small-hydro. India’s installed capacity for power generation
has tripled over the last 20 years and now exceeds the 153000 MW. However, the total
demand is expected to increase by another 2 times in the next decade. The country’s peak
power capacity deficit is expected to widen in 2010 to 12.6 percent of the total capacity, up
from 11.9 percent last year.

2
The present generation capacity of electricity in the 11th five year plan is 159650 MW and the
expected generation by 2020 is 292,000 MW so the per year rate of power generation comes
out to be 132350 MW per year. The Govt may miss its power capacity addition target set for
the 11th Five-year plan due to rising cost of cement, steel and other materials used in building
power plants. The planning commission has estimated the fund requirement of Rs.4.11
trillion for the likely capacity addition of 68,869 MW during the 11 th Plan. Due to huge gap
between demand and production the Govt. of India liberalized power policy by allowing more
and more participation of Indian private players along with foreign players. So the
participation of the private players was felt indispensable. The Govt decided to incorporate
more and more private players in the scene to extend the reach of electricity to the remotest
part of the country. As more and more private players are flocking towards this high potential
market, they are also facing challenges and difficulties in the execution of the project.

Indian Power Sector Organizational Setup

3
Development stage of power sector

4
The power Sector has been receiving adequate priority ever since the process of planned
development began in 1950. The Power Sector has been getting 18-20% of the total Public
Sector outlay in initial plan periods. Over the years (since 1950) the installed capacity of
Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meagre 1713 MW in
1950 the electricity generation increased from about 5.1 billion units to 420 Billion units – 82
fold increase. The per capita consumption of electricity in the country also increased from 15
kWh in 1950 to about 338 kWh in 1997-98, which is about 23 times.
In December 1950 about 63% of the installed capacity in the Utilities was in the private
sector and about 37% was in the public sector. The Industrial Policy Resolution of 1956
envisaged the generation, transmission and distribution of power almost exclusively in the
public sector. As a result of this Resolution and facilitated by the Electricity (Supply) Act,
1948, the electricity industry developed rapidly in the State Sector.
From the Fifth Plan onwards i.e. 1974-79, the Government of India got itself involved in a
big way in the generation and bulk transmission of power to supplement the efforts at the
State level and took upon itself the responsibility of setting up large power projects to
develop the coal and hydroelectric resources in the country as a supplementary effort in
meeting the country’s power requirements. The National Thermal Power Corporation
(NTPC) and National Hydro-electric Power Corporation (NHPC) were set up for these
purposes in 1975. North-Eastern Electric Power Corporation (NEEPCO) was set up in
1976 to implement the regional power projects in the North-East. Subsequently two more
power generation corporations were set up in 1988 viz. Tehri Hydro Development
Corporation (THDC) and Nathpa Jhakri Power Corporation (NJPC). To construct,
operate and maintain the inter-State and interregional transmission systems the National
Power Transmission Corporation (NPTC) was set up in 1989. The corporation was
renamed as POWER GRID in 1992.
In 1995, the policy for Mega power projects of capacity 1000 MW or more and supplying
power to more than one state introduced. The Mega projects to be set up in the regions having
coal and hydel potential or in the coastal regions based on imported fuel. The Mega policy
has since been refined and Power Trading Corporation (PTC) incorporated recently to
promote and monitor the Mega Power
In 1995 GOI came out with liquid fuel policy permitting liquid fuel based power plants to
achieve the quick capacity addition so as to avert a severe power crisis. Liquid fuel linkages

5
(Naphtha) were approved for about 12000 MW Power plant capacities. The non-traditional
fuels like condensate and orimulsion have also been permitted for power generation.
The installed power generation capacity in the country has increased from 1,400 MW in 1947
to 1, 50,574 MW as on 31.07.2009 comprising 36,917 MW hydro, 96,295 MW thermal
including gas & diesel, 4,120 MW nuclear based power plants and 13,242 MW from
renewable energy sources including wind.

THE ELECTRICITY ACT, 2003

The Electricity Act, 2003 has been enacted and the provisions of this Act have been brought
into force with effect from the 10 June 2003 (with this, the Indian Electricity Act, 1910, the
Electricity (Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998 stand
repealed). The main features of the Act are as follows:
(i) Generation has been relicensed and captive generation freely permitted. Hydro projects
would, however, need concurrence from the Central Electricity Authority.
(ii) No license required for generation and distribution in rural areas.
(iii) Transmission Utility at the Central as well as State level, to be a government company
with responsibility for planned and coordinated development of the transmission network.
Provision for private licences in transmission.
(iv) Open access in transmission with provision for surcharge for taking care of current level
of cross subsidy with the surcharge being gradually phased out.
(v) Distributing licences would be free to undertake generation and generating companies
would be free to take up distribution.
(vi) The State Governments are required to unbundle the SEBs. However, they may continue
with them as distribution licensees and State Transmission Utilities.
(vii) Setting up of the State Electricity Regulatory Commission (SERC’s) made mandatory.
(viii) An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs.
(ix) The SERCs are required to permit open access in distribution in phases with surcharge
for current level of cross subsidy to be gradually phased out along with cross subsidies and
obligation to supply.
(x) Metering of electricity supplied, made mandatory.
(xi) Provisions relating to theft of electricity made more stringent.
(xii) Trading as, a distinct activity recognized with the safeguard of the Regulatory
Commissions being authorized to fix ceilings on trading margins, if necessary.

6
(xiii) For rural and remote areas stand alone systems for generation and distribution
permitted.
(xiv) Thrust to complete rural electrification and provide for management of rural distribution
by panchayats, cooperative societies, non-government organizations, franchises, etc.
(xv) The Central Government to prepare a National Electricity Policy and Tariff Policy.
(xvi) The Central Electricity Authority to prepare a National Electricity Plan

Entry of Private Player

The entire value chain of the power sector is dominated by the central and state sector
utilities. For instance, in the generation space, out of the overall capacity of 152 GW, the
share of central and state utilities stands at 49.8 GW and 76.6 GW, respectively; and that of
private sector stands at 25.8 GW Over the years, the government has realized the importance
of the private sector participation. The policy of liberalisation the Government of India
announced in 1991 and consequent amendments in Electricity (Supply) Act have opened new
vistas to involve private efforts and investments in electricity industry. Considerable
emphasis has been placed on attracting private investment and the major policy changes have
been announced by the Government in this regard which are enumerated below:
The Electricity (Supply) Act, 1948 was amended in 1991 to provide for creation of private
generating companies for setting up power generating facilities and selling the power in
bulk to the grid or other persons.
Financial Environment for private sector units modified to allow liberal capital structuring
and an attractive return on investment. Up to hundred percent (100%) foreign equity
participation can be permitted for projects set up by foreign private investors in the Indian
Electricity sector
In 1995, the policy for Mega power projects of capacity 1000 MW or more and supplying
power to more than one state introduced. The Mega projects to be set up in the regions having
coal and hydel potential or in the coastal regions based on imported fuel. The Mega policy
has since been refined and Power Trading Corporation (PTC) incorporated recently to
promote and monitor the Mega Power Projects. PTC would purchase power from the Mega
Private Projects and sell it to the identified SEBs.
In 1995 GOI came out with liquid fuel policy permitting liquid fuel based power plants to

7
achieve the quick capacity addition so as to avert a severe power crisis. Liquid fuel linkages
(Naphtha) were approved for about 12000 MW Power plant capacities. The non-traditional
fuels like condensate and orimulsion have also been permitted for power generation.
Once we break the problem down and identify the bottlenecks, we may be able to better
understand the integration challenges that such large projects pose. While there may be heavy
dependencies on the equipment suppliers and challenges around logistics and work-front
availability- with the right and timely application of project management principles along the
life cycle of the project, one can strive to achieve increased project completion against
baselines. Once we understand the practical implementation challenges then it would be
easier to comprehend the roles of support services in the effective execution of the project.
While the Power sector in India has witnessed a few success stories in last 4-5 years, the road
that lies ahead of us is dotted with innumerable challenges that result from the gap that exists
between what’s planned versus what the power sector has been able to deliver. Our project
highlights and quantifies some of these gaps and attempts to analyze the role of support
services in execution of these projects. As we enter the third year of 11th five year plan, we
have already seen slippages on the planned approx. 79 GW capacity addition.

Ultra Mega Power Projects (UMPP)

8
UMPP are a series of ambitious power projects planned by the Government of India. With
India being a country of chronic power deficits, the Government of India has planned to
provide 'power for all' by the end of the eleventh plan (by 2012) This would entail the
creation of an additional capacity of at least 100,000 MW by 2012. The Ultra Mega Power
projects, each with a capacity of 4000 megawatts or above, are being developed with the aim
of bridging this gap. The UMPPs are seen as an expansion of the MPP (Mega Power Projects)
projects that the Government of India undertook in the 1990s, but met with limited success.
The Ministry of Power, in association with the Central Electricity Authority and Power
Finance Corporation Ltd., has launched an initiative for the development of coal-based
UMPP's in India. These projects will be awarded to developers on the basis of competitive
bidding..Development of Ultra Mega Power Projects (UMPPs) has been identified as a thrust
area. These are very large sized projects, approximately 4000 MW each involving an
estimated investment of about Rs. 16,000 crore. These projects will meet the power needs of
a number of States/ distribution companies located in these States, and are being developed
on a Build, Own, and Operate (BOO) basis. In view of the fact that promotion of competition
is one of the key objectives of the Electricity Act, 2003, and of the legal provisions regarding
procurement of electricity by distribution companies, identification of the project developer
for these projects is being done on the basis of tariff based competitive bidding. Guidelines
for determination of tariff for procurement of power by distribution licences have been
notified in January 2005 under the provisions of the Electricity Act, 2003. The Power Finance
Corporation (PFC), a PSU under the Ministry of Power, has been identified as the nodal
agency for this initiative.

Salient features of the Plant and Choice of Technology

• The Ultra Mega Power Projects would use Super Critical Technology with a view to
achieve higher levels of fuel efficiency, which results in saving of fuel and lower
green-house gas emissions.
• Flexibility in unit size subject to adoption of specified minimum Supercritical
parameters.
• Integrated power project with dedicated captive coal blocks for pithead projects.
• Coastal projects to use imported coal.

Criteria for selection of sites:

9
 • Pit head location with domestic coal,
• Coastal location with imported coal,
• Coastal location with domestic/blended coal
• Through a preliminary scrutiny by CEA of a number of potential sites identified in the
country.

Setting up of Ultra Mega Power Projects : The Government of India, Ministry of

Power has taken initiative for development of following nine (9) Ultra Mega Power Projects
(UMPP) each of 4000 MW capacity in different states:
i) Sasan Ultra Mega Power Project in M.P-coal pithead-6x660 MW
ii) Mundra Ultra Mega Power Project in Gujarat - coastal - 5x800 MW
iii) Krishnapatnam Ultra Mega Power Project in A.P. - costal - 5x800 MW
iv) Ultra Mega Power Project in Jharkhand-coal pithead-4000 MW and
v) Ultra Mega Power Project in Chhattisgarh-coal pithead-4000 MW
vi) Ultra Mega Power Project in Orissa - coal pithead - 4000 MW
vii) Ultra Mega Power Project in Tamil Nadu - coastal - 4000 MW
viii) Ultra Mega Power Project in Maharashtra - coastal - 4000 MW

ix) Ultra Mega Power Project in Karnataka - coastal-4000 MW

The above mentioned UMPPs are to be awarded through tariff base international competitive
bidding. Out of above nine (9) UMPPs, four UMPPs namely Sasan in M.P., Mundra in
Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand have been awarded and
transferred to the developers selected through tariff based competitive bidding. Award for
main plant has been placed in respect of Mundra UMPP & Sasan UMPP which are under
construction. First two units of 800 MW each of Mundra UMPP and first two units of 660
MW each of Sasan UMPP are expected to be commissioned in 11th Plan.
In regard to three UMPPs, namely UMPP in Chhattisgarh, Orissa and Tamil Nadu, the sites
have been identified and various site related studies are underway. The process of selection of
developers for these three UMPPs will start shortly. The sites for UMPPs in Maharashtra and
Karnataka are yet to be finalized. In addition to nine UMPPs originally identified, request has
come from some of the state governments for installation of additional UMPPs in their states.
These are given below:
i) Two Additional UMPPs of 4000 MW each in Orissa
ii) Second UMPP in Gujarat - 4000 MW

10
 iii) Second UMPP in Andhra Pradesh - 4000 MW
The site for second UMPP in Andhra Pradesh has been finalized and approved by
Government of Andhra Pradesh. The sites for additional UMPPs in Gujarat and Orissa are yet
to be finalized.

Role of the Ministry of Power

The Ministry of Power is playing a crucial role for the development of the UMPPs by
coordinating between various concerned Ministries/Agencies of the Central Government, and
with various State Governments/Agencies. Some of the key areas requiring the Ministry of
Power’s intervention include –
1) Coordination with Central Ministries/Agencies for ensuring: Coal block allotment/coal
linkage Environment/forest clearances Water linkage
2) Required support from State Governments and their agencies.
3) Working out allocation of power to different States from UMPPs in Consultation with the
States.
4) Facilitating PPA and proper payment security mechanism with State
Governments/State Utilities.
5) Monitoring the progress of Shell companies with respect to predetermined timelines.

COMPANY INTRODUCTION

11
Reliance Power Limited- one of the largest private power generation companies in India is
engaged in the development, construction and operation of power generation projects with a
combined planned installed capacity of over 35,460 MW, the largest private portfolio of
power generation assets under development in India. The company also has the unique
distinction of securing three out the four Ultra Mega Power Projects (UMPP) (Sasan UMPP,
Krishnapatnam UMPP and Tilaya UMPP) awarded by the Government of India on basis of
tariff based competitive bidding.

Company Profile
An important division of the Reliance Anil Dhirubhai Ambani Group of Companies, Reliance
Power has instituted the power plants in various parts of the Indian Territory. Reliance
Infrastructure, formerly known as Reliance Energy and prior to that as Bombay Suburban
Electric Supply (BSES), is a company under the Reliance - Anil Dhirubhai Ambani Group ,
one of India's largest conglomerates. The company is headed by Anil Ambani. Reliance
Power Limited is one of the pioneering companies in the field of production and supply of
electricity. Reliance Power Limited at present is handling thirteen large and medium power
projects that generate a total of 28,200 MW of electrical energy. Activities:
• Power Generation.
• Power Transmission.
• Power Distribution.
• Power Trading.

SASAN POWER LIMITED

12
The 3960 MW project of Sasan Power Limited has been started in a nearby area of Sasan
village which is under the Singrauli district in Madhya Pradesh. Initially the project was
under the control of Power Finance Corporation Limited. However, through a bidding
procedure done on international levels, the project was bagged by the Reliance Power .In the
year 2007. The site of the project covers around 3500 hectares of land. The Rihand Reservoir
located at a distance of about 7 km from the Power Project is a major source of water supply.
The exact location of Sasan Power Limited is near the Sasan village. The site of the power
project is at a distance 250 km from Varanasi Airport. The nearest railhead to the project is at
Shakti Nagar which is 18 km away.The Singrauli Coal fields have several integrated blocks
that help in transportation of coal to the project site. Ruhella, Mohar, Bundela, Nigahi and
Mehrauli blocks, all of which are about 25 km from Sasan Power Limited project, are
supposed to supply the needed coal for the power generation.

Features of Sasan project

• It is the India’s first UMPP with captive Coal field. It is an integrated power project.
One of the largest coal mines in India.
• Sasan Power Ltd is a SPV of Reliance Power Ltd and it has been financed without
balance sheet support.
• Advanced Supercritical technology will be adopted having high efficiency for power.
• Generation- the machinery (BTG) is being imported from Shanghai Electric
Corporation China.
• Shanghai Electric Corporation is the no1 manufacturer in the world in terms of
Thermal Power Plant generation equipment.

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 ORGANISATIONAL HEIRARCHY OF SPL

PROJECT
DIRECTOR

PROJECT
HEAD

Head Land
Acquisition, Head
Head R&R, Head Head Finance
Legal Project
& Business CSR Construction & Accounts
Management
Development

Project Civil
Managemen HR
t

Quality Electrical
IT

Safety and Mechanical

Environment
Electronics & Contract &
Instrumentati Purchase
on
Civil
Township

CHALLENGES FACED BY PRIVATE SECTOR PLAYERS

14
Private players are facing various problems. For the 12th Five year plan various reasons have
been identified for slippage.
Fuel Availability:-Supply constraints for domestic coal remain and are expected to continue
going forward. Consequently, public and private sector entities have embarked upon imported
coal as a means to bridge the deficit, but after all these all process are remain so cryptic The
failure to achieve the planned target from the captive coal blocks presents itself as a major
challenge to the power sector, as only 24 blocks have become operational out of the total 210.
Experts believe that the non-operational status of majority of these blocks is attributed to land
acquisition (R&R) issues, permit delays and infrastructure problems.

Water linkage:- Power plants circulate significant volumes of water in the process of
generating electricity, Availability of this large amount of condenser cooling water known as
Circulating Water is a key factor in deciding the investment and location of a Thermal Power
Plant. Thermal power plants utilize water as the medium of converting heat energy from coal
or other fuels to mechanical rotational energy in the turbine to produce electricity. Water on
heating in a boiler forms steam at high pressure and temperature. The steam then expands in a
turbine to rotate it. After the steam leaves the turbine, it is then condensed and reused again
the condensation takes place in the condenser. The process removes the Latent heat and
changes water in the vapour form to liquid form. This requires a medium to cool the steam.
Water is the cooling medium in the condenser. This cooling water is termed Circulating
Water or Condenser cooling water. A 600 MW thermal power plant uses around 1800 tons
per hour of steam from the boiler. This means the circulating water requirement in tropical
areas will be almost 120,000 cubic meters per hour. or we can say that the requirement of
water for this purpose is of the order of 1.5-to2.0 cusecs/MW which is a huge quantity of
water, the second biggest input in a power plant after fuel, so it is also a big factor in deciding
the location of a thermal power plant.

Ash Handling:- Ash is the residue remaining after the coal has been incinerated to constant
weight under standard conditions. Ash is oxidized form of the mineral matters present in coal.
Typical ash composition is: SiO2, Al2O3, Fe2O3, CaO, MgO etc. Ash content of Indian coal
used in power station is about 30 to 40 %. A typical 2000 MW station produces around
9000T to 12000T of ash per day. This huge amount of ash needs to be disposed off
continuously. Necessary care to be taken for preventing pollution according to M.O.E.F rule
the plants can dump their ash up to 9 years but after 9 years they have to make any kind of

15
arrangement for its disposal so here it’s become a giant question for power plants here are
some possible solutions are:
• As Fly ash bricks / blocks
• Cellular concrete products
• Light weight aggregates
• Concrete and mortar
• In manufacture of cement
• In manufacture of asbestos products
• Road construction
• Embankment/back fills/land development
• Controlled low strength material (CLSM)
• In agriculture
• Mine filling
• Manufacture of fertilizer

Equipment Shortage:- Equipment shortages have been a significant reason for India missing
its capacity addition targets for the 10th five year plan. While the shortage has been primarily
in the core components of Boilers, Turbines and Generators, there has been lack of adequate
supply of Balance of Plant (BOP) equipment as well. These include coal-handling, ash
handling plants, etc. Apart from these, there is shortage of construction equipment as well.
The Working Group on Power for 11th Plan has outlined the requirement for construction
equipment for Hydro and Thermal power plants.

Land Acquisition and Environment Clearance:- Land Acquisition poses an increasingly

significant challenge in the Indian Power sector. Power plants and utilities face major
constraints and delays regarding the availability of land and obtaining the requisite
environment and other clearances for the projects. The new Bill relating to land acquisition
has continued to face political opposition. While it provides for acquisition by project
development agencies to the extent of 70 percent of the land required for a project, with the
balance to be obtained by the Government. In addition, it has been reported that in some
cases, even after land owners were asked to sell and handover their land in ‘Public Interest’,
the project was not completed for several years due to other delays, a fact that eroded the
credibility of both the industry and the government. Consequently there is a significant

16
mismatch of expectations from the Project Affected Persons (PAP). Stakeholders or other
land owners may collectively object of the project execution. In such cases, it is essential to
proactively manage the environment and stakeholders’ expectations.

Financial:- Rapid buildup of the generation capacity is being aided by setting up of Ultra
Mega Power Projects (UMPPs) each of which is 4000 MW. However, the execution of the
Ultra Mega Power Projects (UMPP) is a significant challenge as India has not witnessed an
execution of such a large scale power project before. Furthermore, with each UMPP costing
above INR 16,000 Crore, financing such a large project is a critical constraint for any
developer. In addition, considering the high financial stake involved through private
investments, delay in payments may put severe pressure on developers/suppliers to meet the
performance commitments .However the effort from PFC have done for example as PFC has
also established the 'Power Lenders' Club' which consists of 18 banks and includes major
financial institutions, like HUDCO and LIC.

Manpower Shortage:- There is a general consensus that shortage of talent in the

construction sector is a long term problem and is likely to continue to push up project costs
and risks. The flow of talent into construction and power sector has been gradually drying up
as candidates have sought an alternative – and often more lucrative – career options. The
Government, which is the biggest buyer of the capital projects, has also not done enough to
address this challenge. The education system is often not delivering the required number of
specialists across project management, engineering, estimating, surveying and contract
management. Facing a desperate game of catch up, the industry needs a genuine collaboration
between project owners, contractors and governments to attract more school leavers and
graduates. Companies should also seek to stay in touch with changing employee aspirations.
By encouraging diversity in its employment practices and by offering greater flexibility in
working hours, the sector can reach out to a wider potential audience that perhaps would not
previously have considered such a career. Investment in existing employees is also crucial in
order to offer better-defined career structures, with a greater focus on training and higher
salaries where possible.

17
Source-JMC Committee Min .Of Power (For 11th five year plan)

18
 SUPPORTIVE SERVICES

The support services can broadly be divided into two groups.

I. Internal Support Services.

II. External Support Services.

Internal Support System: - This support system mainly deals with the following functional
areas.
• Finance

• Fuel Procurement (Coal In this case)

• Project Management

• CSR

• Administration

• Information Technology

• Purchase & Procurement

• Human Resource& Public Relation

• Health & safety

External Support System: - This support system mainly deals with the following functional
areas.
• Govt. agencies

• Utility Provider

• Regulatory Authorities (C.E.A., M.O.E.F., M.O.C, M.O.P etc.)

• Vendors & Contractors

• Stake Holders

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 Financial Support Service
Task performed-
 Preparation of budget, appropriation of accounts, re-appropriations, surrender and
savings. Control of expenditure and ways & means position.

 Payments of bills

 Audit

 Treasury administration

 Administration of Taxes ,Resource mobilization through loans, Institutional Finance,

Small Savings, Credit and Investment and public debt.

 Financial concurrence and advice.

 Compilation of Codes, Rules and procedures concerning financial transactions and

having bearing on State finance and their implementation.

 Safety and investment of funds from consolidated funds, contingency fund and public
account.

 Contract, recovery and refund of revenue etc

Analysis
 Report management is very efficient. The bills are channelized properly and are
executed within the time frame.

20
  The delay pressure is enormous. Actually when the bills are passed, it goes through
different committees, but the vendors are not aware of that procedure and hence exert
pressure on finance department. But the management is efficient to handle this
pressure.

 This delay sometimes demotivates the vendors and the blockage in the cash flow
affects the execution of the project. This may be the reason the vendors are not very
enthusiastic working with the firm in future.

 This is one of the reasons, the employees in this dept. feel that there is shortage of
staff and expects some new recruitment.

 The auditing is of two kinds

 Internal Audit: The internal audit is conducted half yearly by Rishabh Jain & Co.
It is also proposed to increase the frequency of this audit to quarterly.

 External Audit: The external audit is conducted at the end of every financial year
that is 31st of March. The consultancies that monitor the auditing are Price water
Coopers and Chaturvedi & Shah.

The role of financial support services on different parameters on likert scale of 5 point. where
5 stand for extremely important,
4 for important,
3 for neither important nor unimportant,
2 Unimportant
1 No role

S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 
2 Water linkage 

3 Ash handling 

21
4 Equipment Shortage 

5 Land Acquisition and 

Environment Clearance
6 Man power shortage 

7 Finance 

Land Acquisition and Environmental Clearances Support Service

For any green field project land acquisition is the most important activity. This
activity is facilitated by the provisions given in Land Acquisition Act 1894. The first phase
comes to identify the site, and a Detailed Project Report (DPR) is prepared. The required area
for the plant is sought and asked for acquisition. There are basically three types of land viz.
Forest land, Govt land and the Private land. The forest land is tried to be avoided as far as
possible because it requires longer process and final award is given by the Supreme Court. As
time is the major constraint in such a large project, the company has to take required steps to
get the clearance and a considerable time is elapsed in such proceedings.
A MoU is signed between the company and the Govt. An area is identified for setting
up the plant. Then certain clearances has to be passed with respect to type of the land,
environmental clearances etc. Then Section 4 is notified by which it is illegal to either buy or
sell or build any new construction on the proposed land. Under section 4 the people are

22
informed about the acquisition of the land. Then their reaction is studied and a comfortable
time is given to them for reacting on the subject. Then Section 5 A is notified under which
Govt conducts a public hearing for recording their reaction. Sub-Divisional Magistrate listens
to their issues and decides whether their issues are genuine and logical or not. Finally after
this whole procedure the Govt. takes the decision whether to acquire the land or not. If the
Govt. takes the decision that the land can be acquired then Section 6 is imposed in which
Govt. declares that the land has to be acquired. From section 4 to Section 6 it takes a
maximum of 1 year time. Under Section 7 the Collector deputes Land Acquisition officer.
After this asset survey is carried in which the concerned authority conducts the survey and
note down the specification of the land as well as the assets (well, tube well, trees, ponds, any
construction etc) on the land under Section 8. After this the valuation of the asset is carried
down. Finally under Section 9, LAO gives notice to the villagers about their compensation
and notifies the date of the hearing. A public hearing is called on under the supervision of the
Land Acquisition Officer, in which the compensation is, ascertained. The people are informed
about their individual compensation. If the affected people have any problems regarding the
count of the asset or the valuation or any other problem regarding the compensation, they can
complain and it is recorded accordingly. If the complains are genuine then the database of
their lists of assets are updated. Lastly a final award is set and cheques are prepared and
distributed. If the compensation is within Rs 2 crore it is awarded by the collector otherwise if
it exceeds that amount then the authority to award is the commissioner. Whatever time is
consumed after that final award the interest at the rate of 12% p.a. is paid to the affected
people. After all these processes the cheques are prepared and issued to the concerned people.

CSR and R & R

It is the responsibility of the company to ensure the rehabilitation and resettlement (R

& R) of the affected people. Under the R & R policy of the company, the people who were
living on the acquired land, they would be provided at least equal or better facilities to live in
the new location. Following steps have been taken to facilitate R & R to the affected people.
• Those people who have been displaced, a house to every family have been provided.

23
 • They have been given Rs. 1000 for the transportation of their assets to the new
location.

• An allowance equal to the minimum wage is given for 1 year for their settlement.

• School for children is opened in their vicinity.

• Medical facility is provided free of cost through competent doctors.

• Societies have been formed to ensure better communication.

• In order to develop their employability they are given training to unskilled and semi-
skilled people.

• Employment to at least one member of the family is ensured as per their skills and
abilities.

Observation
This Sasan Ultra Mega Power Project was offered by Power Finance Corporation
(PFC), Govt. of India. The agreement was that PFC would be providing the required land for
the power plant as well as the captive mines. As per the agreement the PFC had to provide the
vacated land but when Reliance actually went into the deal the land given to them only on
papers, it was not vacated. People were residing on the proposed land. Now as the project has
to be started from the construction phase, but the company has to indulge in the land
acquisition process to start the project as soon as possible. As in case of SPL land acquisition
is a sort of activity which would facilitate the initiation of the project so I had taken this Land
Acquisition process as the support service. With this regard I met several staffs connected
with this activity. I met Mr. Ankit Mishra (SPL), Mr. Asheesh Srivastava associated with the
Chitrangi project, a subsidiary of Reliance Power. I also interacted with Mr. J.P. Mishra (Rtd.
Deputy Collector) and Mr. D.D. Verma (Rtd. Tehsildar) who are monitoring the technicalities
of the process. They are placed in the middle management. I had also got an opportunity to
talk to higher officials such as Mr. D. Mathur (CEO, SPL) and Mr. Himadri Rautrai (GM,
CPPL). They shared their experiences. My observations are jotted down as below.
 The policy of the Govt. is crystal clear to cater to the needs and requirement of the
project.

24
  The policy of the company also complies with the peaceful and smooth evacuation of
the land.

 The land acquisition process is primarily the work of the govt. and the company’s role
is to facilitate the uninterrupted flow of the procedures. But in actual scenario the
story is just the reverse.

 The administration is not very enthusiastic until and unless the core issues of the
people are solved. They also have their limitations and cannot exercise their powers at
their will as it may affect the health of the Govt.

 In case of this project, one of the prime reasons of the delay is that three elections
(Central, State and Municipal) were held during the execution of the land acquisition
process. As all the Govt. processes gets paralyzed during election which gives fatal
blow to the project.

 The local people resistance is not a very big issue in this area, as there are several
similar kinds are project running here, people are aware of the advantages and their
limitations. They only expect and demand an equitable compensation.

 The major difference between the land acquisitions between SPL & CPPL is that the
majority of the residents of CPPL are tribal people. So the motive and the demand of
the people are different.

 The living style, social, economic and the cultural issues of the tribal people are
entirely different, so it’s quite daunting task to provide the same ambience in
rehabilitation and resettlement.

The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 for important,
3 for neither important nor unimportant,
2 Unimportant
1 No role

25
S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 

2 Water linkage 

3 Ash handling 

4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage 

7 Finance 

Recommendations:-
After getting through these challenges I propose the following possible solutions.
 The Govt. should revise its Land Acquisition Act, and define the time frame for land
acquisition as per the magnitude of the area of the land to be acquired.

 There should be flexibility in the policies of the Govt. which could enable the
advanced possession of the land.

 The Govt. should develop the concept of Land Bank. It should have the land at its
disposal which could be provided to the interested and eligible companies and the
project can directly go to the construction phase.

 As these projects are focussed on the development of the country also, so the Govt.
should empower their administration and encourage them for whole hearted support.

 As per my observation, there is more requirement of the manpower.

 The people recruited should either be specialized in land acquisition or be provided

proper training to execute the process.

 The process should be streamlined properly and clear distribution of responsibility

should persist. The requisite authority should be delegated along with the
responsibility.

26
 Recruiting engineers and technocrats and assigning the job which has nothing to do
with their academic background develops resentment in their mind. So the efficiency
in their performance depletes and creates job dissatisfaction.

 As local people resistance is the major challenge faced in any Green Field Project.
The confidence of the people should be gained. They should be given their deserved
compensation with respect to the monetary, economic, social, cultural etc. aspects.

 It should be ensured that there should not be any foul play and any third party reaps
the advantage.

 External influence should be minimized.

 The safety of the displaced people should also be taken care of.

27
 Fuel Procurement (Coal)

As the prime requirement of the power plant is the availability of the fuel and water. With this
regard I went to the Coal office which is a separate dept. in SPL. I got an opportunity to meet
several staffs there. Mr Kaushik Sanyal, a civil engineer is looking after the land acquisition
matters. I also had an opportunity to interact with the Head, Mr V.K. Singh. I explored some
very inquisitive facts. To summarize it some of the issues are jotted down below.
 There are major three coal blocks Moher, Moher Amlohri ext and Chhatrasal. Moher
village has a total land of 15.57 sq. km. The over burden dump is majorly carried
through Amlohri. The coal seams are discovered at a depth of 47m lies in the region
Pureva. The second coal seam is at a depth of maximum 290m lies in the region
Turra. Since the maximum depth to be mined is less than 300m so it would be an open
cast mine rather than Underground mines.

 There are basically three kinds of land viz. Govt land (129.42ha), Private land
(352.4ha) and Forest land (1064.02ha). The rehabilitation and resettlement of these
coal block areas is done at Naugarh.

 As per the interaction with the officials, the delay in the land acquisition is due to the
bureaucracy and red-tapism.

 The time constraints between the section 4 and section 6 of land acquisition Act 1894
is 1 year. If it exceeds this limit then the whole process has to be re initiated again.
The previous procedures are considered to be null and void.

 Similarly to go through whole process of land acquisition it has to pass through the
section 9 and thus the max time limit with the final award is 3 years. If it exceeds this
time constraint then it has to be reinitiated again.

 The capacity of the mines of Moher & Moher Amlohri Ext. is 20 mtpa and that of
Chhatrasal coal mine is 5 mtpa.

28
  The distance the mines and the power plant is around 18 km. The whole process of
coal transport would be carried through conveyor belt which is first of its kind in
India.

 The operational challenges that is anticipated during mining is that, the per second
value of the equipment is very high, so the optimal utilization of these equipment has
to be assured.

 The latest technologies are implemented with high capacity equipment. So there is
slight problem in the procurement of the customized equipment. For example the
dragline capacity has been calculated to be 31.2 cu m. So there is problem in timely
delivery of this customized heavy equipment.

 They have also planned for the recruitment of the skilled manpower. There are plans
of training and development of unskilled and semiskilled labour force in order to cater
to the exact work requirement.

 For the safety issues there would be an audio visual presentation at the start of every
shift in order to spread awareness among the employees. Some officials have already
been sent to US for training in safety management.

 I observed a slight lack in the co-ordination and communication through the

hierarchy. As the floor management were not aware of the policies. This shows the
lack of communication and awareness.

The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 for important,
3 for neither important nor unimportant,
2 Unimportant
1 No role

S.N Issues 1 2 3 4 5
o

29
1 Fuel Procurement 

2 Water linkage 

3 Ash handling 

4 Equipment Shortage 

5 Land Acquisition and 

Environment Clearance
6 Man power shortage 

7 Finance 

Suggestion to fuel availability issues

After getting through these issues, I propose the following solutions.

 The policies should be very much communicated through the hierarchy.

 There should be a committee which should continuously follow up the Govt

officials for the timely movement of the files. It should be monitored and if it finds
any obstacle, it should solve the issue at the earliest.

 The final settlement with the local people should be negotiated properly so as to
gain their trust and faith to avoid any disturbances and delay.

 The disputed lands for example some portion are claimed by both forest and
revenue dept. should be sorted out by conducting meetings of both the parties with
the chairmanship of authorized authorities supervising both the departments.

 It is necessary to provide the people who are being rehabilitated and resettled, a
proper infrastructure and amicable ambience so as to gain their faith and trust and
smooth flow in the execution of the project.

 More stress has to be laid upon developing the organizational culture, so as to

motivate the employees and their dedication towards the work.

 The assignment of the job should be methodical such that it motivates the
employees and does not show any biases. It should also ensure the optimal
utilization of the resources such as time, money, machine and labour.

30
  The monitoring system should be technologically advanced. For example GIS &
GPS systems should be implemented so as to keep vigilant eyes on the proper
execution of the work.

 The recruitment of the people should be appropriate in order nurture good culture
and tasks could be executed efficiently. Here the role of human resource support
system plays a vital role.

 There should be continuous training and development program in order to cope up

the technological advancement and value addition to the job as well as the
employees.

 The employees should be empowered and the tasks should be assigned according
to their capabilities. The employees should not develop a sense of debarment. This
fatally strikes the emotional sentiments of the employees and hence leads to
difficulty in employee retention.

Purchase and Procurement Support System

The basic objective of Purchase Management is to ensure Right Quality of material at right
place and time from a right source at a right price. Each of these objectives has its own
significance and merits utmost knowledge, care, diligence, focused attention and wisdom.
To avoid slippages in external and internal lead-time it needs both expertise and experience.
The dynamics of the fast changing scenario in market conditions that is changing
technology, products, processes and fast obsolescence need to be understood and appreciated
not only by purchase executives but also by executives of user department. That’s why after
the approval of Purchase Requisition, it is passed on to contracts and purchase department
for further analysis.
Process
Vendor selection
Vendors are categorized in to different groups on the basis of their financial aspects,
technical aspects, the types of work and services they provide and therefore they are further
requested to provide quotation.
Basis on which the categorization is done:
1. Financial Aspect:-

31
(i) Turnover of the vendor (it should be at least 50% of the cost of the project.
2. Technical Aspect:-
(i) Area of experience

The criteria for the selection and award of procurement contracts under this project will be
based on the following decision criteria:

• Ability of the vendor to provide all items by the required delivery date
• Quality
• Cost
• Expected delivery date
• Comparison of outsourced cost versus in-sourcing
• Past performance

These criteria will be measured by the contracts review board and/or the Project Manager.
The ultimate decision will be made based on these criteria as well as available resources.

Request for quotation

A request for quotation (RFQ) is a document that an organization submits to one or more
potential suppliers eliciting quotations for a product or service. An RFQ seeks an itemized
list of prices for something that is well-defined and quantifiable, such as hardware. Another
type of document, called a request for proposals (RFP), is customarily used when the
requesting organization's requirements are more complex.
Tender
After the purchase requisition is decided and approval note is passed, further analysis in
contracts and purchase department is done. Selection of agency for the purpose of execution
of work should be done on the basis of competitive bidding.
Open tender: Through public advertisements
Limited tender: By invitation to sources already registered with the owner firm or having
proven past performance
Single tender: By invitation to single tender
For the purpose of Tendering, the following shall be kept in mind:
the option of Bidding could be through Open Tender, Limited Tender or Single Tender
basis. While choosing the mode of tendering, reasons/justification for selection of the

32
particular mode should be recorded while obtaining the approval of the Competent
Authority.
estimated cost of the work to be indicated in the Notice Inviting Tender (NIT) will be 90%
of its approved cost estimate.
earnest Money Deposit (EMD) and the cost of tender documents shall be as per the
guidelines issued by Corporate Contracts from time to time.

Offer
After the quotations from the sellers, it is the time for the sellers to respond. They provide all
the necessary information which is mandatory for the owner firm to evaluate them.
Technical evaluation report
Technical evaluation report is simply sending the non prized orders to vendors so that they
should send their own estimate of the cost of the work or item that can be furnished by
vendor to the seller.
Bid analysis and comparison
When the vendors are asked to provide their estimated cost for providing their items or work
or services, their costs are evaluated on the basis of financial feasibility and technical basis
like man power of that organization, and financial soundness and comparison among them is
done to analyze them and thus the best vendor with best service is selected.
Negotiation
The process is followed by negotiation between vendors and owners for the price on which
they are agreeing to provide the services, the time for which the contract will be legal,
minimum time for the accomplishment of work and delivery of service.
Award letter and work/purchase order
Award letter or work order is finally issued to the selected vendor for a limited period of
time.

Execution
The work order when issued to the vendors, owners then wait for the execution of work and
see that whether the work has been done completely or not and within the specified time
with the cost that was decided between the two parties.
Paid

33
After the work is executed, it is the time for the owner to pay the vendor the price of the
service they provided and either terminate the contract or extend the period of the contract
for more time.
The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 for important,
3 for neither important nor unimportant,
2 Unimportant
1 No role

S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 
2 Water linkage 
3 Ash handling 
4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage 
7 Finance 
Recommendations:-
 After getting through these challenges I propose the following possible solutions.

 Purchase is an important activity so all deals should be done on given parameters

 The contract and purchase department do play very significant role in maintaining the
quality as all crucial equipments and other things are purchased through this
department so here its role become so significant, so suitable quality parameters
should be followed.

34
Project Management

35
Once the Detailed Project Report is analyzed and finalized then comes the role of the Project
Management. Project management is basically the heart of any project. Broadly it has five
organs.
i. Planning

ii. Organising

iii. Executing, monitoring & controlling

iv. Integrating & Communicating

v. Closure of the project and Hand over.

PLAN: Plan is a formal, approved document used to guide both project execution and project
control. The primary uses of the project plan are to document planning assumptions and
decisions, facilitate communication among stake holders, and document approved scope, cost
and schedule baselines. It has two components. First activity planning and second is the
corresponding resource planning. For proper planning the whole scope is broken down into
higher level activities which are further broken down into micro level activities. This process
is carried out till activities, which are better manageable and controllable, are achieved. These
breaks down structures are synthesized into manageable level. In order to comprehend easily
we have tried to simplify through block diagrams.

36
SCHEDULE: After talking to the members of the Project Management team, I understand
that basically the schedules are of three types.
• External Commitment: - This schedule is prepared and provided to the external
agency for which the work is being performed. For example the schedule that is
prepared by SPL (Reliance Power) for External / Regulatory Bodies (Procurers,
Lenders, CEA, PFC etc).

• Internal Schedule: - The schedule that is prepared by Project Manager for higher
authorities of the company and for internal circulation. The project manager ensures
that he never slips from this schedule. This schedule acts as a memorandum of
understanding between the project manager and of higher management. For example
the schedule that is made for the higher management that takes care of the pessimism
that may arise during the execution. Internal Schedule has a shorter duration than the
External Commitment.

• Best Effort Schedule: - This schedule is prepared by the Project Management team
and is circulated to all working team & Contractors. Though higher management is
reported according to the internal schedule. This schedule is actually implemented
during the project. PM and its team members always refers to this schedule for their
analysis such as delay, resource etc. This schedule is further shorter in duration than
the Internal Schedule. It is based on the optimistic approach and utilizes the best use
of the resources.

Schedules are further divided on the basis of levels as following.

 L1 Schedule- Prepared by the sponsors / owners. It defines the schedule at the macro
level. For example Reliance Power makes a schedule that all the 6 units of the SPL
should be operational by 2016 and the plant should work at its full capacity.

 L2 Schedule- The major activities are defined and scheduled. For example the power
plant erection is broken down into major packages for eg. General civil works, boiler
erection, CHP, Power house Building, Ash handling plant, Demineralization plant etc.
This schedule is prepared by Project manager with his team.

 L3 Schedule- This schedule is prepared by Contractors with reference to their award

and L2 schedule. This is submitted to Engineer In-charge and the Project Manager.

37
 Contractor  EIC  PM (Base L2 & Contract)

 L4 Schedule- This is also prepared by the Contractor and submitted to the EIC. This is
usually a daily basis schedule  EIC (Base L3)

 L5 Schedule- Hourly basis, Contractor  Contractor’s manpower. (Base L4).

ORGANIZE: The Project management team organises the task as follows

• This process allots the work to the manpower i.e. team and work allocation.

• Issue handle- philosophy / plan is made, process is defined, and people are made
responsible and accountable.

• Risk management- philosophy / plan is made, process is defined, and people are made
responsible and accountable.

• Quality assurance- philosophy / plan is made, process is defined, and people are made
responsible and accountable.

• Environment, Health & Safety (EHS) - philosophy / plan is made, process is defined,
and people are made responsible and accountable.

• Effective Communication & Co-ordination is the backbone and leads to the success of
any project. It takes care of the following issues

 It decides the delegation of responsibility, authority and the accountability of the

task assigned

 Report management is one of the critical issues that are dealt by the project
management team. It answers the following questions.

• Who will give the data?

• To whom it will be given?

• Who will compile the data?

• To whom it will be sent?

38
 • Which report to be sent to whom?

EXECUTE MONITOR & CONTROL: - Here comes the actual implementation of the
activities with reference to the committed schedule. A balance is maintained between what
ought to be done and what is actually performed. Active monitoring is done and if any issue
arises and it is resolved as early as possible such that it does not hamper the main schedule.
Quality is assured and monitored and reported. It takes the help of MIS for reporting.

INTEGRATION: -This is one of the main essences in any project management which leads to
the success of the project. It deals with the requirement in the process and the product and
with effective co-ordination it aligns the different tasks as per the schedule for the
achievement of the progress in the project. It requires document flow and management, data
flow and management and the effective communication between different teams / concerned.

CLOSURE OF THE PROJECT: - When the project is completed, before handing it over it
goes through the following steps.
• Physical check of all the installations and the working is done.

• The performance guarantee tests are carried / witnessed. Verification and quality
checks as per the contracts are done.

• If it passes the above tests then final payments are made.

• Finally the closure of the contract is declared.

The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 stands for important,
3 stands for neither important nor unimportant,
2 Not so important

1 No role

S.N Issues 1 2 3 4 5
o

39
1 Fuel Procurement 
2 Water linkage 
3 Ash handling 
4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage
7 Finance 

Administration Support Service

Admin office plays a vital role as for smooth and proper operation at the site office as well as
admin office some of the activities are:
 Providing &maintaining the stationary material for office use(a letter is issued to
various department and demand is asked from them and requirement is fulfilled
respectively)

 Storage and allocation equipments like-GPS, Measuring tape

 Allocation of vehicle (company’s own as well as contract basis vehicle are allotted
according to need of various departments)

 Maintaining the residential place of site employees(making proper arrangement for

housekeeping of employees colony)

 Arranging various event and get-together(arranging from roots and getting the things
needed at right time right place)

 Providing support and assist to others departments

 Security arrangement at office ,site and residential colony

 Letter dispatch &mailing

 Arrangement of small utilities

 Visitors reception

40
  Office reception

The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 for important,
3 for neither important nor unimportant,
2 Unimportant

1 No role

S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 

2 Water linkage 

3 Ash handling 

4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage 

7 Finance 

41
Information Technology

42
Information technology is a branch of engineering that deals with the use of computers and
telecommunication to retrieve and store and transmit information. It is a tool which automates
the system. With respect to Sasan Power Ltd. which is a green field project the primary
challenge is the land acquisition. Here IT team have developed unique and customized
software for land acquisition. Initially the software was developed in Visual Basic-6
language. They developed the program which could be installed and the set up file could be
run. This software was further upgraded using C# 2005, and a centralized data base was
developed through SQL Server. This software was in itself unique and first of its type in land
acquisition process. The data base maintained a uniformity which was accessible from
anywhere within its domain. The corporate office could easily monitor the progress. This in
its true sense behaved as a supportive service in the fast and efficient execution of the project.
The main tasks of IT dept. can be categorized as follows:
 Communication: - The smooth running of any organization depends on the effective
communication. IT facilitates this through its efficient set-up. This takes into account
the flow of information between different hierarchy within the organisation and
between the organisation and external stake holders. IT dept. facilitates this service
through the EPBX and the internet. In order to communicate with the corporate office
and to arrange the meetings the dept. takes care of the video conferencing and the
voice conferencing.

 Document Management System: - Particularly for a green field project which starts
from the scratch, there are a lot of documents (maps, diagrams, designs, schedules
etc.) that have to be managed effectively. It’s necessary that all these documents
should be managed for easy retrieval to the managers and for effective monitoring of
the progress of the project. The number of maps and designs runs into lacs, so it’s
very cumbersome to identify the exact document required by the managers. Here IT
plays a vital role help the managers and engineers easy access to these documents.

 Data Base Management System (DBMS): - SPL is working on a green field project.
The first and foremost activity of any green field project is the getting the clearances
and the land. For this it is required to maintain the database of all those people whose
land has to be acquired. For the effective management of this activity IT plays a
pivotal role in maintaining these in their data base and show wherever necessary. It

43
 also required maintaining the database of all the reporting and the progress in the
project.

 DATA MAPPING: - Here at SPL one of the prominent tasks of the IT dept. is to
regulate and maintain System Application and Product (SAP). This software
facilitates the other supporting services depts. to maintain flow of input and output.
For example Finance dept uses SAP to maintain the inflow and outflow of money,
passing the bills etc. The Contract and Purchase dept uses this software in maintaining
the database of the vendors as well as help them in selecting the vendors. It helps in
procuring the materials.

 Security: - It is one of the main concerns of any organisation. In order to prevent any
unauthentic entry in the organisation the IT dept facilitates the employees with the
master cards which are also the identity card of the employee. It helps in monitoring
the attendance and the authentic entry of the employees into the organisation. Some
places in the plant for example control room is very sensitive. So unauthorized entry
is restricted through the help of the IT. People who are authorized and have the
permissible access card could only be permitted to such an area. There are many
documents which are highly confidential, and should not be communicated to
outsiders. IT dept also keeps the vigilant eye on these transfers through mails and
internet.

Here at Sasan Power Ltd, the IT Dept. is performing the following tasks
 They are providing network services (LAN) to facilitate the easy share of files within
the organisation.

 Internet facilities, mail access, domain login are also facilitated through this dept.

 To ensure security, different sorts of security arrangements are made such as antivirus
security, unauthorized access security, data security as per the ADA policies.

 To enhance the communication, voice facility is provided through EPBX.

 There is a video conferencing unit which facilitates the top officials to communicate
with the corporate office is also maintained by this dept.

44
 Voice conferencing is facilitated so that the top officials could communicate from
different users from different locations.

 Printing, scanning, copying, plotting etc up to size A0 are also taken care of by the
dept.

Now specifically meeting the challenges as identified in the execution of the project the
IT dept. acts as a support service in the following ways
• With respect to the fuel availability IT Dept. is planning to develop software which
could monitor the input, processing and the output of the coal and water.

• It also ensures efficient monitoring system specially coal handling system.

• Geographical Information System (GIS) has basically dual viabilities.

I. Commercial

II. Technical

In the first phase the critical path is defined and the digital map through the
use of software is installed.

• The equipment shortage is monitored through SAP. It generates the purchase order
and gives the exact figures of the availability of the equipment.

• The whole process of land acquisition is done through the in-house developed
software. The entire database is prepared and updated through that software. It also
helps in easy monitoring of the progress of the process.

• The financial challenges are also supported through SAP. It helps them to easily
passing of the bills which facilitates the smooth flow of the project. The bills of the
suppliers and the vendors are also executed easily for fast and smooth execution of the
project.

The role of fuel Procurement support services on different parameters on

likert scale of 5 point.

5 stands for extremely important,

4 for important,

45
 3 for neither important nor unimportant,
2 Unimportant
1 No role
S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 
2 Water linkage 
3 Ash handling 
4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage 
7 Finance 
Human Resource

Human Resource management is the strategic and coherent approach to the management of
an organization’s most valued assets – the people working there who individually and
collectively contribute to the achievement of the objectives of the business. It is the
application of the policy and procedures that directly affect the people working within the
project team and working group.
Here at SPL the HR dept basically looks after the following tasks.
 Contractors Bill Validation

 Employee Services

• Pay Role

• Induction

• Job Assignment

• Attendance

• Issue of Bonafide Certificates

• Time to time Service

 Welfare Activities

46
 • Parties

• Picnics

• Get together

• Cultural Festivals

 Training & Development

• Training

• Professional Circle (Knowledge Sharing)

 Talent Management

 Performance Appraisal

 Managing Outsourced Manpower

 External

• Industrial Relation (IR)

• Relation with external stake holder (Govt Officials)

Now a day most of the work of the organization is out sourced. As a result the HR
dept has to look after the validation of the contractors bills. It has to check for the valid
licence, insurance and other requisite documents before offering the assignments to the
vendors.
When a new employee joins the organisation, the first interaction of the employee is
with the HR dept. It is the job of this dept to generate the pay role. This generation is done
through the help of SAP where all the information of the employee is fed. Then as a formal
introduction of the new Joinee to the organisation, the HR manager arranges the induction
program. This enhances the familiarity of the Joinee with other employees of the
organisation. Once this process is over, the HR manager introduces the employee to his/her
concerned boss, who assigns the job.
For the regular employees, it is the duty of the HR dept keep a track of the attendance.
If the employee requires any bonafide certificate for personal purposes for example gas

47
connection, telephone connection etc, and this task also come in the purview of the HR
manager. There are other time to time services such as issue of the certificates or leaves
updation etc comes under this dept only.
For the entertainment of the employees the HR dept arranges the recreational
activities such as arranging monthly parties, picnics, get together, cultural festivals etc. These
activities help in refreshment of the employees and thus aid in their retention. In order to
attain the organisational goals and enhancing the individual prospects, HR dept conducts
training and development. This gives the scope of improvement as an individual as well as
help in organisational growth. In this very context there comes the professional circle where
the employees who are specialist in some areas, they give the presentation in order to share
their expertise. This helps in group dynamics and strengthening the bond and improving the
quality of the employees through in house group activities.
In order to motivate the employees the HR dept conducts the performance appraisal. It
helps the HR dept to identify the best performing employees and give them their due reward.
This generates a healthy competitive ambience where the employees are motivated to deliver
their best. As per the report of the employees are recommended for the promotion by the
management which is further processed through the HR dept. Thus HR dept efficiently takes
care and manages the talent. In order to maintain an amicable relationship with the external
customers such as Industries, Govt. Officials, it also comes in the ambit of HR dept. The dept
issues form 5 under Contracts and Labour Act 1970 which ensures the contract labourers for
a minimum wages. The relationship with other organisation and govt officials are also
handled by the dept. It is the relationship of the dept which helps the organisation in building
and maintaining a good rapport. In juxtaposition of all ideas HR dept is the backbone of the
organisation.

The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 stands for important,
3 stands for neither important nor unimportant,
3 Not so important

1 No role

48
S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 
2 Water linkage 
3 Ash handling 
4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage 
7 Finance 

Health & Safety Support System

The protection of life and property, prevention of accidents, and maintenance of a safe
and healthy work environment for site personnel and visitors are needed for the project to

49
be successful. Now it becomes very important for any plant setup to make proper
arrangement for this safety system. This mainly deals with the
1) Unsafe condition
2) Unsafe Act
Unsafe condition refers to condition of the floor, of the ladder, of a machine of a stair way of
a tool, of a conveyor belt or anything else of physical environment or mechanical character
which could lead to an accident
Unsafe act refers to something somebody does which may culminate in an accident the word
may is used because it is not necessary that it should always lead to an accident but we can
be sure that if such kind of act are persisted they would result in avoidable injuries
Company policy
• Company’s moral responsibilities to its employees. To provide the best practicable
conditions of work from the point of view of health and safety.

• The obligation to consult with its staff and their representatives to implement policies
and procedures developed as a result of discussions.

• Statutory responsibility in respect of health, safety and welfare of employees

emanating from relevant legislation such as the Factories Act. The Indian Electricity.
Act., The Explosive Act, the Boiler Act etc.

To ensure to fallow the above the Sasan Power Ltd. Have fallowing resolution
1) To allocate sufficient resources to provide and maintain safe and healthy

Conditions of work.
2) To ensure that adequate safety instructions are given to all employees.
3) To provide wherever necessary protective equipment, safety appliances and
clothing, and to ensure their proper use.
4)To keep all operations and method of work under regular review for making
necessary changes from the point of view of safety in the light of experience and up
to date knowledge.
5) To provide appropriate instruction, training, retraining and supervision in health
and safety and first aid and ensure that adequate publicity is given to these matters.
6) To ensure that the professional advice is made available wherever potentially
hazardous situations exist or might arise.

50
 7) To ensure regular safety inspection by a component person at suitable intervals of
all buildings work places and operations.
8) To co – ordinate the activities of the company and of it contractors working in the
company’s premises for the implementation and maintenance of safe system of work
to comply with their legal obligations with regard to health. Safety and welfare of
their employees.

The role of fuel Procurement support services on different parameters on likert scale of 5
point.
5 stands for extremely important,
4 stands for important,
3 stands for neither important nor unimportant,
2 Not so important

1 No role

S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 
2 Water linkage 
3 Ash handling 
4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage
7 Finance 

EXTERNAL SUPPORT SERVICE

51
Govt. Agencies & Regulatory Authorities

- Govt agencies play very important role in policy making and regulations as every step taken
by company have to fallow various government rules and have to act accordingly. Some
prime activities are-

1) Coordination with Central Ministries/Agencies for ensuring:

 Coal block allotment/coal linkage
 Environment/forest clearances
 Water linkage
2) Required support from State Governments and their agencies.
3) Working out allocation of power to different States from UMPPs in
Consultation with the States.
4) Facilitating PPA and proper payment security mechanism with State
Governments/State Utilities.
5) Monitoring the progress of Shell companies with respect to predetermined
timelines.
Apart from these the local administration play vital role as district magistrate work as the land
accusation officer apart from these the local administration have the interfere in various
issues like
• Labour wages

• Resettlement and rehabilitation of Project Affected Persons (PAPs)

• Security arrangement at the site office

• Monitoring and regulation

CEA-The Central Electricity Authority (CEA) is a statutory organization constituted

under Section 3 of the repealed Electricity (Supply) Act, 1948. It was established as a
part-time body in the year 1951 and made a full-time body in the year 1975.

52
 With the objective of reforming the Power Sector, the Electricity Act, 2003 (No. 36 of
2003) has been enacted and the provisions of this Act have been brought into force
with effect from 10th June, 2003. With the coming into force of the Electricity
Act,2003, the Indian Electricity Act, 1910, Electricity (Supply) Act, 1948 and
Electricity Regulatory commissions Act, 1998 stand repealed.

a) The Grid Standards under section 34;

b) Suitable measures relating to safety and electricity supply under section 53;

c) The installation and operation of meters under section55;

d) The rules of procedure for transaction of business under sub-section (9) of

section 70;

e) The technical standards for construction of electrical plants and electric

lines and connectivity to the grid under clause (b) of section 73;

f) The form and manner in which and the time at which the State Government and
licensees shall furnish statistics, returns or other information under section 74;

g) Any other matter which is to be, or may be, specified

MoEF-

The Ministry of Environment & Forests (MoEF) is the nodal agency in the
administrative structure of the Central Government for the planning, promotion, co-
ordination and overseeing the implementation of India's environmental and forestry
policies and programmes.

The broad objectives of the Ministry are:

• Conservation and survey of flora, fauna, forests and wildlife

• Prevention and control of pollution
• A forestation and regeneration of degraded areas
• Protection of the environment and

53
 • Ensuring the welfare of animals

The M.O.E.F & State pollution control board works in tie up for giving grant to any
new project proposal considering the various factors

The SPL got the this clearance through EIA Notification 1994

Power Project Monitoring Panel (PPMP)

A Power Project Monitoring Panel(PPMP) has been set up to independently follow up and
monitor the progress of the critical projects so as to ensure to convert within the targeted
schedule.The progress reporting system of PPMP includes monthly brief to the Minister of
Power and Secretary (P) highlighting the points of intervention. The panel
recommendations are primarily in two categories those which are project specific and other
generic that relate to systems and procedures suggested for improving project management
and monitoring system

The role of fuel Procurement support services on different parameters on likert scale of 5

5 stands for extremely important,

4 stands for important,
3 stands for neither important nor unimportant,
2 Not so important

1 No role
S.N Issues 1 2 3 4 5
o
1 Fuel Procurement 

2 Water linkage 
3 Ash handling 

4 Equipment Shortage 
5 Land Acquisition and 
Environment Clearance
6 Man power shortage 

7 Finance 

54
 Summary and Conclusion

It is evident that the deficit in power availability in India is a significant impediment to the
smooth development of the economy. In this context, bridging the gap in demand and supply
has become more critical and consequently, large projects are undertaken in power generation
sector. As India has not witnessed such a large scale of implementation before, there is a need
to review and enhance project execution capabilities to help ensure targets are met.
This strongly necessitates employing a comprehensive project management structure to
address the major challenges of the SUMPP and to be able to deliver them as per the planned
targets.
As discussed initially, the overall intent of this project is to highlight the role of support
services in the project execution and to identify the opportunities and challenges of these
support services in expediting the project and the drivers that are required to address these
challenges.
The table below summarizes the key implementation challenges and drivers for successfully
achieving the implementation of these recommendations in SPL.
Key Implementation challenges and Drivers for the success in Reliance Power.
Key Challenges Measures Resulting Issues Drivers for
determining Success
Addition of UMPP Technical and financial -Project execution
significant generation capability to execute -Costs/cash flow
capacity such a large project management
-Risk management
strategy and planning
Ensuring fuel Purchase and -Risks in operating in Risk management
availability and development of different geographies through effective
quality captive coal mines -Uncertainties in contracting, supply
logistics operations diversification, etc
Plant equipment Procurement from -Vendor reliability -Robust procurement
shortage abroad -Execution timelines management, vendor
monitoring
-Project scheduling
Land acquisition and Speeding up the Inadequate Environment and
environmental processes communication with the stakeholder
challenges stakeholders resulting in management
the mismatch of the
expectations from the
project affected people
Manpower shortage -Enhance training -Attrition Resource planning
-Lateral -Competitors and management
recruitment
-Outsourcing

55
 REFERENCES
1. Balani,P.L.,(1984). Thermal Engineering. 9th ed. New Delhi. S.Chand Publishing

House Pvt. Ltd.

2. India 2010 Annual Reference.54th ed. New Delhi. Publication Division, Ministry of

Information & Broadcasting.

3. Electricity Act, 2003.

4. A report on ULTRA MEGA POWER PROJECTS by Government of India, Ministry

of Power (2007-08).

5. www.powermanagertrainning.com

6. Data provided by Sasan Power Limited (a subsidiary of Reliance Power Limited).

7. Indian Economy by Pratiyogita Darpan (2009-10)

56