Examination Paper of Power Management
IIBM Institute of Business Management 5
IIBM Institute of Business Management
Examination Paper MM.100
Power Sector Reforms
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. It is the largest electricity company and operate in 13 Countries in total
a. The Spanish Multinationals
b. Endesa
c. Iberdrola
d. Union Fenosa
2. This indicates to what extent a particular reforms is accelerating (or possibility
retarding) access
to electricity
a. Electrification levels
b. Electrification rate
c. Electricity consumption
d. None
3. The ___________ tariff order has fixed charges for wheeling power from a 220 KV feeder
of a
substation to say 132 KV or 33 KV destination
a. Agriculture tariff
b. ERR
c. APERC
d. OECD
4. This represents the contribution of a consumer category towards the peak
demand on the
system
a. Demand
b. Energy consumption
c. Consumer
d. None
5. In Argentina, ___________ agreements covering the whole of the electricity sector were
ended
& replaced by separate negotiations with each company
a. Outsourcing
b. Privatisation
Examination Paper of Power Management
IIBM Institute of Business Management 6
c. Liberalization
d. Collective Bargaining
6. The per capita consumption of electricity increasing at a compounded Annual
Growth Rate is
________
a. 3.04 percent
b. 4.04 percent
c. 5.04 percent
d. 6.04 percent
7. VVNL stands for _____________________.
8. CAGR stands for _____________________.
9. CMNAP stands for ___________________.
10. ERC stands for ______________________.
Part Two:
1. What is the impact of Power Sector Reforms on the poor in Orissa?
2. State the objectives of the National Electricity Policy?
3. What are the objectives of the Phase III of Reform?
4. What is Rural Electrification?
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
Indian economy has of late attained the status of being the fastest growing economies of
the world with
a growth rate of 8 to 9 percent per annum. To sustain such a growth, the energy need
especially of the
electricity industry has to be considered the driver and carefully assessed.
India’s electricity
consumption is at the sixth position globally with 606 unit’s per capita consumption per
annum. Soon it
END OF SECTION A
Examination Paper of Power Management
IIBM Institute of Business Management 7
will become 1000 units per annum by 2012. To meet such large demand, the role of private
investors
assumes a pivot role. To further support this, the Union Government of Indian has budgeted
Rs. 5,750
billion to central, State and private power utilities to augur power generation,
transmission and
distribution.
To further add on, the Electricity Act 2003 and National Electricity Policy has made 100
percent FDI that
has encouraged private companies to join CTUs/STUs (Central Transmission Utility/ State
Transmission
Utility ) apart from breaking state monopolization. Private companies are also
forming joint ventures
with as much as 74 percent of equity share as compared to independent Power Transmission
Company
(IPTC). All these have entailed rapid privatization of the State Electricity
Boards (SEBs) such as in
Haryana, Delhi, Uttar Pradesh, Madhya Pradesh, Orissa, Andhra Pradesh and
Karnataka. Efforts are
being made to private electricity distribution in other states as well.
International ties also propel growth in Indian power sector as also in talks held with
Nepal and Pakistan
to construct exchange and form co-operatives in electricity generation and
distribution and firm up
position in South Asia.
Despite the above gives and encouraging market scenario, factor like poor operational
efficiency of the
SEBs, subsidized tariffs, low budget for transmission and distribution, inadequate
maintenance, high
distribution losses and thefts and uncollected bills result in acute power shortage of as
much as 11.7
percent in 2004-05.
RNCOS, a bespoke market research company in its market research report “Future of Indian
Electricity
Sector (2005-2012)” analyzes the Indian Electricity Sector in light of the existing policy
and regulatory
framework. The report also studies the growth, performance and reform initiatives
of the sector and
provides statistical results on generation, transmission and distribution during 2004-05.
The report highlighted on several aspects. These being
Overview electricity sector casing the current sectoral reforms and achievements,
supported by
the key macroeconomic and demographic data afflicting the market growth.
Developments and structural changes in the government policies and programs.
Year 200 data on value, volume and segmentation on the regional generation,
distribution, and
transmission of electricity.
Energy co-operation agenda within the South-Asian countries.
Monopolization and effect of privatization on the energy sector.
Drivers and barriers for the private companies to enter the market.
Employment opportunities in the sector.
Investment opportunities for the foreign companies to invest in the electricity sector.
Performance to existing power stations through renovation and modernization programs.
Performance rating of the state power sector across all states 2004.
A seven-year forecast of the industry
An analysis of the key players in the Indian electricity sector and
providing their company
profiles and financial results.
Policy analysts are working on the highlighted aspects in order to frame appropriate
policies to augment
the decrepit power industry and making it variable with the millennium goal of cheap and
uninterrupted
power of all Indians.
Questions:
1. On the basis of the above case comment on the Recent Scenario of Power Sector Reform.
Examination Paper of Power Management
IIBM Institute of Business Management 8
2. Give the highlights of the concerned report.
Caselet 2
Watts and Volts Ltd has been manufacturing power generation equipment (PGEM) in small and
medium
sizes. The sales were affected either directly to the consumers who would place large
orders or through
distributors. The company even sold abroad and 50% of its sales were due to exports.
Regional territories (RTs) were the basis of Sales Department. The Regional Sales Manager
(RSM) was
responsible for generating sales, making calls, to conceive new ideas as well
as developing new
products. The Chairman of the company saw this as a problem area and appointed a Marketing
Manager
(MM). He evolved a thorough marketing plan. It took into account the present selling
efforts as well as
the developments of new products. He suggested an entry into the Systems Market (SM). By
this, he
meant that the equipment connected to a power generator should also be developed by the
company
e.g. irrigation pumps for use in the farms. These were to be sold as packages. The
Marketing Manager
felt that to develop these systems, it was necessary to appoint Product Managers, who were
to be given
total responsibility of the development and marketing of the system. The Regional Sales
Managers did
not have the time to market the specialized systems satisfactorily. Besides, they did not
have systemconsumer knowledge and the inclination.
The Marketing Manager was strongly opposed to having two parallel sales organizations under
the same
roof. He believed that the job of a Product Manager ended with successful
development and
introduction of a given product. The sales responsibility will be that of Regional sales
Manager only.
Questions:
1. What organizational structure would you recommend for the marketing and sales
operations of
M/s. Watts and Volts Ltd?
2. Who in your opinion is responsible for sales? Justify your opinion, in the light of
this case.
Section C: Applied Theory (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 150 words).
END OF SECTION B
Examination Paper of Power Management
IIBM Institute of Business Management 9
1. Several issues would be sorted out in creating a separate organisation for supplying
power to
agriculture. What are those issues? Explain
2. Describe the process of IRP and give the schematic representation of IRP process.
S-2-301012
END OF SECTION C
IIBM Institute of Business Management 5
IIBM Institute of Business Management
Examination Paper MM.100
Power Sector Reforms
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. It is the largest electricity company and operate in 13 Countries in total
a. The Spanish Multinationals
b. Endesa
c. Iberdrola
d. Union Fenosa
2. This indicates to what extent a particular reforms is accelerating (or possibility
retarding) access
to electricity
a. Electrification levels
b. Electrification rate
c. Electricity consumption
d. None
3. The ___________ tariff order has fixed charges for wheeling power from a 220 KV feeder
of a
substation to say 132 KV or 33 KV destination
a. Agriculture tariff
b. ERR
c. APERC
d. OECD
4. This represents the contribution of a consumer category towards the peak
demand on the
system
a. Demand
b. Energy consumption
c. Consumer
d. None
5. In Argentina, ___________ agreements covering the whole of the electricity sector were
ended
& replaced by separate negotiations with each company
a. Outsourcing
b. Privatisation
Examination Paper of Power Management
IIBM Institute of Business Management 6
c. Liberalization
d. Collective Bargaining
6. The per capita consumption of electricity increasing at a compounded Annual
Growth Rate is
________
a. 3.04 percent
b. 4.04 percent
c. 5.04 percent
d. 6.04 percent
7. VVNL stands for _____________________.
8. CAGR stands for _____________________.
9. CMNAP stands for ___________________.
10. ERC stands for ______________________.
Part Two:
1. What is the impact of Power Sector Reforms on the poor in Orissa?
2. State the objectives of the National Electricity Policy?
3. What are the objectives of the Phase III of Reform?
4. What is Rural Electrification?
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
Indian economy has of late attained the status of being the fastest growing economies of
the world with
a growth rate of 8 to 9 percent per annum. To sustain such a growth, the energy need
especially of the
electricity industry has to be considered the driver and carefully assessed.
India’s electricity
consumption is at the sixth position globally with 606 unit’s per capita consumption per
annum. Soon it
END OF SECTION A
Examination Paper of Power Management
IIBM Institute of Business Management 7
will become 1000 units per annum by 2012. To meet such large demand, the role of private
investors
assumes a pivot role. To further support this, the Union Government of Indian has budgeted
Rs. 5,750
billion to central, State and private power utilities to augur power generation,
transmission and
distribution.
To further add on, the Electricity Act 2003 and National Electricity Policy has made 100
percent FDI that
has encouraged private companies to join CTUs/STUs (Central Transmission Utility/ State
Transmission
Utility ) apart from breaking state monopolization. Private companies are also
forming joint ventures
with as much as 74 percent of equity share as compared to independent Power Transmission
Company
(IPTC). All these have entailed rapid privatization of the State Electricity
Boards (SEBs) such as in
Haryana, Delhi, Uttar Pradesh, Madhya Pradesh, Orissa, Andhra Pradesh and
Karnataka. Efforts are
being made to private electricity distribution in other states as well.
International ties also propel growth in Indian power sector as also in talks held with
Nepal and Pakistan
to construct exchange and form co-operatives in electricity generation and
distribution and firm up
position in South Asia.
Despite the above gives and encouraging market scenario, factor like poor operational
efficiency of the
SEBs, subsidized tariffs, low budget for transmission and distribution, inadequate
maintenance, high
distribution losses and thefts and uncollected bills result in acute power shortage of as
much as 11.7
percent in 2004-05.
RNCOS, a bespoke market research company in its market research report “Future of Indian
Electricity
Sector (2005-2012)” analyzes the Indian Electricity Sector in light of the existing policy
and regulatory
framework. The report also studies the growth, performance and reform initiatives
of the sector and
provides statistical results on generation, transmission and distribution during 2004-05.
The report highlighted on several aspects. These being
Overview electricity sector casing the current sectoral reforms and achievements,
supported by
the key macroeconomic and demographic data afflicting the market growth.
Developments and structural changes in the government policies and programs.
Year 200 data on value, volume and segmentation on the regional generation,
distribution, and
transmission of electricity.
Energy co-operation agenda within the South-Asian countries.
Monopolization and effect of privatization on the energy sector.
Drivers and barriers for the private companies to enter the market.
Employment opportunities in the sector.
Investment opportunities for the foreign companies to invest in the electricity sector.
Performance to existing power stations through renovation and modernization programs.
Performance rating of the state power sector across all states 2004.
A seven-year forecast of the industry
An analysis of the key players in the Indian electricity sector and
providing their company
profiles and financial results.
Policy analysts are working on the highlighted aspects in order to frame appropriate
policies to augment
the decrepit power industry and making it variable with the millennium goal of cheap and
uninterrupted
power of all Indians.
Questions:
1. On the basis of the above case comment on the Recent Scenario of Power Sector Reform.
Examination Paper of Power Management
IIBM Institute of Business Management 8
2. Give the highlights of the concerned report.
Caselet 2
Watts and Volts Ltd has been manufacturing power generation equipment (PGEM) in small and
medium
sizes. The sales were affected either directly to the consumers who would place large
orders or through
distributors. The company even sold abroad and 50% of its sales were due to exports.
Regional territories (RTs) were the basis of Sales Department. The Regional Sales Manager
(RSM) was
responsible for generating sales, making calls, to conceive new ideas as well
as developing new
products. The Chairman of the company saw this as a problem area and appointed a Marketing
Manager
(MM). He evolved a thorough marketing plan. It took into account the present selling
efforts as well as
the developments of new products. He suggested an entry into the Systems Market (SM). By
this, he
meant that the equipment connected to a power generator should also be developed by the
company
e.g. irrigation pumps for use in the farms. These were to be sold as packages. The
Marketing Manager
felt that to develop these systems, it was necessary to appoint Product Managers, who were
to be given
total responsibility of the development and marketing of the system. The Regional Sales
Managers did
not have the time to market the specialized systems satisfactorily. Besides, they did not
have systemconsumer knowledge and the inclination.
The Marketing Manager was strongly opposed to having two parallel sales organizations under
the same
roof. He believed that the job of a Product Manager ended with successful
development and
introduction of a given product. The sales responsibility will be that of Regional sales
Manager only.
Questions:
1. What organizational structure would you recommend for the marketing and sales
operations of
M/s. Watts and Volts Ltd?
2. Who in your opinion is responsible for sales? Justify your opinion, in the light of
this case.
Section C: Applied Theory (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 150 words).
END OF SECTION B
Examination Paper of Power Management
IIBM Institute of Business Management 9
1. Several issues would be sorted out in creating a separate organisation for supplying
power to
agriculture. What are those issues? Explain
2. Describe the process of IRP and give the schematic representation of IRP process.
S-2-301012
END OF SECTION C
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