Examination Paper of Power Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Indian Power Sector
Section A: Objective Type (30 marks)
? This section consists of Multiple Choice questions & short note questions.
? Answer all the questions.
? Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. NTPC has placed appropriate emphasis on the quality aspects in
a. Project Management
b. Maintenance specialist
c. Forecasting
d. CRM
2. Out of the following which one is NOT under Maintenance objectives
a. To maximize plant availability & reliability
b. To optimize maintenance cost.
c. To create safety in work, equipment & environment
d. Management of large size power stations.
3. Import of capital equipment would be free from
a. Income Tax
b. Custom duty
c. Sales tax
d. None
4. Which sector is one of the largest users of gas in India
a. A. telecom
b. Thermal power
c. Power
d. Energy
5. ____________ is the largest private sector Vertically Integrated Power Utility in the electricity
distribution field in India.
a. NTPC
b. BTL
c. BTC
d. BSES
Examination Paper of Power Management
IIBM Institute of Business Management 2
6. The government of India has set up a ______________ under the Chairmanship of the Union
Minister of Power with members from the Ministry of Power, Finance, Coal, Environment,
Railway Board, CEA at the level of secretary to the government
a. Crisis Resolution Group (CRG)
b. CEA
c. PTC
d. None
7. LNG stands for ___________________.
8. VCP stands for ___________________.
9. KESC stands for __________________.
10. WAPDA stands for ________________.
Part Two:
1. Give the new policy initiatives which have been taken by the government of India in the recent
past.
2. What are the few other issues which confront the developers particularly at the time of
finalizing the Power Purchase Agreement?
3. What is Board Organization Structure of the Power Industry?
4. Write a short note on Tata Electric Company.
Section B: Caselets (40 Marks)
? This section consists of Caselets.
? Answer all the questions.
? Each Caselet carries 20 marks.
? Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Bharat Research Development Corporation (BRDC) was set up as an autonomous body under the
supervision and control of Council of Scientific and Industrial Research. Its main function was to market
the various products as presses developed by the different laboratories in the country. These covered
such areas as electronics, metallurgy, chemistry, and physics on sale.
END OF SECTION A
Examination Paper of Power Management
IIBM Institute of Business Management 3
The entrepreneurs or industries interested in any of the items can write to BRDC and upon the payment
of nominal sum (ranging from Rs. 5 to 30) can get a printed report which is termed as a ‘project profile’.
This covers such details as product identification and specifications, potential applications, types of
machinery and raw materials required, cost of the project and estimated profit levels. If and when an
entrepreneur gets interested in a particular project, he can sign a contract with BRDC for buying the
process. This normally consists of payment of a lump sum fee and royalty on sales after the production
commences, for a period of 5 to 11 years, depending on the product process. The royalty rates vary
from 2% to 5% p.a.
Even after six years of its existence, BRDC is not considered as a successful venture for several reasons.
There are lot many products or processes for which there are no buyers. on some of the sales effected
earlier, complaints of one type or the other are mounting. These cover such areas as incorrect
estimation of cost of the project, non-availability of raw materials recommended and many others.
However, the major areas of dissent are on the lack of any marketing data. The entrepreneurs feel that
BRDC, a marketing organisation has failed in marketing organisation has failed in marketing of its
services.
The project profile which is given to the prospective entrepreneur is prepared by respective research
laboratories. They are neither in touch with the markets nor have the machinery to compile the market
data which could be provided in the project profile. As a result of this situation, the entrepreneurs
cannot establish the marketing feasibility of the project before they enter into an agreement with BRDC.
Suggestions are pouring with BRDC that before they decided to market a project, a detailed market
research should be done; so that the entrepreneurs will have no doubt in their mind about the feasibility
of the project. The entrepreneurs have even agreed to share the costs. The proposal has been accepted,
in principle. BRDC, at present, does not have a market research cell. They are wondering whether they
should set up their own cell or should utilize the services of professional market research agencies, from
time to time, on assignment basis.
Questions:
1. What recommendations would you offer to BRDC? Why?
2. Do you think by giving market research data in ‘project profiles’, the working of BRDC would
show any improvements? Why?
Caselet 2
“After 38 years of working for Agua Energia Electrica, I found myself in the dilemma of whether
accepting a “voluntary” resignation (not “voluntary” at all, because I was pressured to accept it), or
keeping on fighting in defence of my job. The events of that time are so traumatic that remembering
them makes me shudder. I had always worked honestly, expecting to retire with honors when the
moment came.
My health-deteriorated by stress-could not bear any more, and I eventually accepted the “voluntary”
resignation. Today, at 58 years of age, having enough years of service but not the required age of 65
stipulated by law. I cannot retire, nor can I be reinstated because the electricity market is totally
polarized. Nobody takes advantage of my training, what I learnt to do during nearly four decades. I
support my family on occasional jobs. I’ve even stopped paying our healthcare insurance. I am a person
that worked hard to attain an upper-level post, who achieved it by my own effort, and who lost it due to
a market reorganization that I do not understand and which is destroying me and my colleagues.” A
leader of the APJAE union San Rafael branch, western zone, 25
th
February 2000: “As all members of this
Examination Paper of Power Management
IIBM Institute of Business Management 4
union know, my co-worker Carlos Alberto Stocco used to work, during the last phase of Agua Energia
Electrica, in the Transmission department, job which he carried out efficiently, reaching Category 15,
and working full-time. Parallel to this, he was the President of the San Rafael APJAE Branch. By the time
the privatizations took place, the Transmission department was given to a concessionaire and
transferred to the enterprise Transport de Energia Electrica por Distribution Troncal de Cuyo S.A.,
Distrocuyo S.A. at the new enterprise Mr. Stocco and another member of this union, Alberto Sardi, were
persuaded to disaffiliate from our trade union “because the new management did not want unionists”.
However, they were notified that the new enterprise did intend to arrange an “internal union”. Ion
exchange, they were promised promotions and pay increase, or, otherwise, they were threatened with
dismissal. In this situation, they resigned from the union. A year later, once protection time established
by the labour law was over; both were dismissed without any explanations. Both workers then set uptogether with other former co-workers in the same circumstances- a service company, which did not
however succeed in bringing the necessary profits for them to support their families. They compensated
this by doing other activities, from which they obtained good results, but the economic problem was not
only consequence they suffered. The loss of his job caused one of them a psychological problem that
translated into a profound depression and which, after treatment with no result, led to his suicide.”
Question:
1. Describe how the life of workers get effected by working for a long time in Power Companies
2. What recommendations would you suggest to the worker who wants to give the resignation in
the above case? Why?
Section C: Applied Theory (30 Marks)
? This section consists of Long Questions.
? Answer all the questions.
? Each question carries 10 marks.
? Detailed information should from the part of your answer (Word limit 200 to 150 words).
1. Explain Revised Mega Power Project Policy and give the important features of this policy.
2. Give the response of major concerns and future Outlook of the Indian Private Power Policy
which was introduced in October 1991.
3. State the Inadequacies & Limitations of the State Electricity Board (SEBs) of Indian Electricity
Industry.
END OF SECTION C
END OF SECTION B
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Indian Power Sector
Section A: Objective Type (30 marks)
? This section consists of Multiple Choice questions & short note questions.
? Answer all the questions.
? Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. NTPC has placed appropriate emphasis on the quality aspects in
a. Project Management
b. Maintenance specialist
c. Forecasting
d. CRM
2. Out of the following which one is NOT under Maintenance objectives
a. To maximize plant availability & reliability
b. To optimize maintenance cost.
c. To create safety in work, equipment & environment
d. Management of large size power stations.
3. Import of capital equipment would be free from
a. Income Tax
b. Custom duty
c. Sales tax
d. None
4. Which sector is one of the largest users of gas in India
a. A. telecom
b. Thermal power
c. Power
d. Energy
5. ____________ is the largest private sector Vertically Integrated Power Utility in the electricity
distribution field in India.
a. NTPC
b. BTL
c. BTC
d. BSES
Examination Paper of Power Management
IIBM Institute of Business Management 2
6. The government of India has set up a ______________ under the Chairmanship of the Union
Minister of Power with members from the Ministry of Power, Finance, Coal, Environment,
Railway Board, CEA at the level of secretary to the government
a. Crisis Resolution Group (CRG)
b. CEA
c. PTC
d. None
7. LNG stands for ___________________.
8. VCP stands for ___________________.
9. KESC stands for __________________.
10. WAPDA stands for ________________.
Part Two:
1. Give the new policy initiatives which have been taken by the government of India in the recent
past.
2. What are the few other issues which confront the developers particularly at the time of
finalizing the Power Purchase Agreement?
3. What is Board Organization Structure of the Power Industry?
4. Write a short note on Tata Electric Company.
Section B: Caselets (40 Marks)
? This section consists of Caselets.
? Answer all the questions.
? Each Caselet carries 20 marks.
? Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Bharat Research Development Corporation (BRDC) was set up as an autonomous body under the
supervision and control of Council of Scientific and Industrial Research. Its main function was to market
the various products as presses developed by the different laboratories in the country. These covered
such areas as electronics, metallurgy, chemistry, and physics on sale.
END OF SECTION A
Examination Paper of Power Management
IIBM Institute of Business Management 3
The entrepreneurs or industries interested in any of the items can write to BRDC and upon the payment
of nominal sum (ranging from Rs. 5 to 30) can get a printed report which is termed as a ‘project profile’.
This covers such details as product identification and specifications, potential applications, types of
machinery and raw materials required, cost of the project and estimated profit levels. If and when an
entrepreneur gets interested in a particular project, he can sign a contract with BRDC for buying the
process. This normally consists of payment of a lump sum fee and royalty on sales after the production
commences, for a period of 5 to 11 years, depending on the product process. The royalty rates vary
from 2% to 5% p.a.
Even after six years of its existence, BRDC is not considered as a successful venture for several reasons.
There are lot many products or processes for which there are no buyers. on some of the sales effected
earlier, complaints of one type or the other are mounting. These cover such areas as incorrect
estimation of cost of the project, non-availability of raw materials recommended and many others.
However, the major areas of dissent are on the lack of any marketing data. The entrepreneurs feel that
BRDC, a marketing organisation has failed in marketing organisation has failed in marketing of its
services.
The project profile which is given to the prospective entrepreneur is prepared by respective research
laboratories. They are neither in touch with the markets nor have the machinery to compile the market
data which could be provided in the project profile. As a result of this situation, the entrepreneurs
cannot establish the marketing feasibility of the project before they enter into an agreement with BRDC.
Suggestions are pouring with BRDC that before they decided to market a project, a detailed market
research should be done; so that the entrepreneurs will have no doubt in their mind about the feasibility
of the project. The entrepreneurs have even agreed to share the costs. The proposal has been accepted,
in principle. BRDC, at present, does not have a market research cell. They are wondering whether they
should set up their own cell or should utilize the services of professional market research agencies, from
time to time, on assignment basis.
Questions:
1. What recommendations would you offer to BRDC? Why?
2. Do you think by giving market research data in ‘project profiles’, the working of BRDC would
show any improvements? Why?
Caselet 2
“After 38 years of working for Agua Energia Electrica, I found myself in the dilemma of whether
accepting a “voluntary” resignation (not “voluntary” at all, because I was pressured to accept it), or
keeping on fighting in defence of my job. The events of that time are so traumatic that remembering
them makes me shudder. I had always worked honestly, expecting to retire with honors when the
moment came.
My health-deteriorated by stress-could not bear any more, and I eventually accepted the “voluntary”
resignation. Today, at 58 years of age, having enough years of service but not the required age of 65
stipulated by law. I cannot retire, nor can I be reinstated because the electricity market is totally
polarized. Nobody takes advantage of my training, what I learnt to do during nearly four decades. I
support my family on occasional jobs. I’ve even stopped paying our healthcare insurance. I am a person
that worked hard to attain an upper-level post, who achieved it by my own effort, and who lost it due to
a market reorganization that I do not understand and which is destroying me and my colleagues.” A
leader of the APJAE union San Rafael branch, western zone, 25
th
February 2000: “As all members of this
Examination Paper of Power Management
IIBM Institute of Business Management 4
union know, my co-worker Carlos Alberto Stocco used to work, during the last phase of Agua Energia
Electrica, in the Transmission department, job which he carried out efficiently, reaching Category 15,
and working full-time. Parallel to this, he was the President of the San Rafael APJAE Branch. By the time
the privatizations took place, the Transmission department was given to a concessionaire and
transferred to the enterprise Transport de Energia Electrica por Distribution Troncal de Cuyo S.A.,
Distrocuyo S.A. at the new enterprise Mr. Stocco and another member of this union, Alberto Sardi, were
persuaded to disaffiliate from our trade union “because the new management did not want unionists”.
However, they were notified that the new enterprise did intend to arrange an “internal union”. Ion
exchange, they were promised promotions and pay increase, or, otherwise, they were threatened with
dismissal. In this situation, they resigned from the union. A year later, once protection time established
by the labour law was over; both were dismissed without any explanations. Both workers then set uptogether with other former co-workers in the same circumstances- a service company, which did not
however succeed in bringing the necessary profits for them to support their families. They compensated
this by doing other activities, from which they obtained good results, but the economic problem was not
only consequence they suffered. The loss of his job caused one of them a psychological problem that
translated into a profound depression and which, after treatment with no result, led to his suicide.”
Question:
1. Describe how the life of workers get effected by working for a long time in Power Companies
2. What recommendations would you suggest to the worker who wants to give the resignation in
the above case? Why?
Section C: Applied Theory (30 Marks)
? This section consists of Long Questions.
? Answer all the questions.
? Each question carries 10 marks.
? Detailed information should from the part of your answer (Word limit 200 to 150 words).
1. Explain Revised Mega Power Project Policy and give the important features of this policy.
2. Give the response of major concerns and future Outlook of the Indian Private Power Policy
which was introduced in October 1991.
3. State the Inadequacies & Limitations of the State Electricity Board (SEBs) of Indian Electricity
Industry.
END OF SECTION C
END OF SECTION B
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