Feb-Enron invokes Indian govt. guarantee to collect $17 million overdue bills April- Issues a notice of arbitration to Indian govt. to recover $21.9 million; MSEB agrees to pay $28.6 million May-Govt. sets up Godbole committee; Enron rejects payment of $29.1 million saying it was submitted “under protest” Sep-Letter to India PM from Ken Lay 2001-The year of Twist and Tales
Pest Analysis Political: Who supported and who were the forces against it? Economic: What was at stake while the project was being rolled out? Threat of Entrants: Cogentrix of US; Daewoo of Korea etc. Industry: rivalry Amongst existing competitors (SEB’s,NTPC ETC.) Bargaining power of buyers Bargaining power of suppliers Threat of substitutes: State run coal based electricity boards Social: How were the people affected amidst the turmoil? Technical: Did it have the required specifications?
Present scenario-2009 Renamed as Ratnagiri Gas and Power Pvt. Ltd.(RGPPL) Started operation again in 2006 but was closed on 4 July 2006 due to lack of Naphtha supply Qatar based Rasgas Ltd. supplied LNG in April 2007 Plant operational a now with 900MW LNG fired capacity
Subsequent developments in power sector since 2001 Electricity act 2003:An Act to consolidate the laws…for taking measures conducive to development of electricity industry, promoting competition therein, protecting interests of consumers and supply of electricity to all areas National electricity policy,2005:A significant portion (Say 15% of the new capacity) should be committed to trading or other forms of competitive power markets Draft tariff policy,2005:“All the power needs to be procured competitively”
Conclusion Power thefts to be controlled Rural Sector needs to be concentrated upon Promote Investments in alternate energy sectors Create awareness about electricity conservation Growth oriented political will required
Bibliography Tony Allison, Enron's eight-year power struggle in India , January 18, 2001. August 21, 2009 <http://www.atimes.com/reports/CA13Ai01.html> Five Forces Guide. The Internet And The Business Environment, Stefan cel Mare University of Suceava, July 20, 2008. July 22, 2009 < http://www.scribd.com/doc/377404/Five-Forces-guide> Dabhol, Wikimedia Foundation, Inc. August 20, 2009. August 20, 2009. <http://en.wikipedia.org/wiki/Electricity_sector_in_India>