EDPM Report # 2_ Pankaj Shukla

EDPM TRAINING REPORT- 2 13-15 JULY, 2012 NEW DELHI
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PANKAJ SHUKLA, AIIL MUNDRA
Subject Project Management Report - 2( PMR-2)
as part of EDPM training
Name Pankaj Shukla
Organisation Adani Infra ( India) Limited
Date 28.07. 2012

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Strategy without action is day dream.
ACTION WITHOUT STRATEGY IS NIGHTMARE
STRATEGY DEVELOPMENT IS DONE
TO address
1. The Organisation Vision & Goal
2. Financial Objectives
3. Sustainability & Growth
4. Stakeholders Aspirations
5. Management of Resources
6. Internal & External Business Environment
7. Learning & Development
. . . & achieve Project success

EDPM TRAINING REPORT 15-17 JUNE,2012 NEW DELHI
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1. ADANI Vision
2. Strategy of Adani Power Limited
3. Generic strategy deployed
4. “SWOT” analysis for internal & external environment.
5. Industry level & Firm level critical success factors (CSF)
6. Innovation implemented
7. Promoting a culture of ‘Ownership of Aspirations, Intellectual
Leadership and Speed
Contents

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Adani Target / Performance : ( Vision 2020)
From being a new entrant in India’s power sector in 2006, Adani Power Limited has taken rapid strides and
has achieved several path breaking Milestones during its journey of becoming the largest private thermal
Power Producer in the country as well as becoming the largest coal based single location private thermal
Power Plant in the world.
Presently the group is working towards the vision 2020 of ADANI GROUP by Chairman Sh. Gautam Adani.
“ To be the admired leader in integrated infrastructure business
with a deep commitment to nation building. We shall be known
for the scale of our ambition, speed of execution and quality of
operation ’’
1. ADANI VISION:

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2. Strategy development & execution at Adani Power Limited:
2.1 : Need for strategy :
Strategies need to be developed and implemented to face the dynamic and challenging internal &
external business environment , anticipate and mitigate the risks, avail the business opportunities,
meet the stakeholders expectation and synergise whole group towards realisation of the
organisation goals.
Being the new entrant into the power sector , an exhaustive and in-depth analysis was carried out
to assess and analyse the following in order to develop and implement effective organization
strategy:
1. Growth , sustainability and earning potential of the power sector on long term
basis.
2. Existing constraints in the sector ( land availability, statutory clearances, coal
availability, transmission lines ,water etc).
3. Local vendors manufacturing capabilities, technology and alternative sourcing
of equipments.
4. Challenges of resources mobilisation, funding, technical know-how
5. Organisation strength & weakness.
6. Immediate capacity setup and future capacity expansion possibility.
7. Project management setup
8. Competition

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2.2 Strategy Development & Execution :
With exhaustive brain-storming session, discussions & analysis, the following strategies were
developed and implemented to address each of the above issues as following:
Need Analysis Strategy adopted
1. Growth , sustainability
and earning potential
of the power sector on
long term basis.
India being on the path of rapid
growth & industrialization
where a GDP of around 9% is
required to be matched with
power sector growth in excess
of 11-12%. The present per
capita power consumption is
mere 700 units compared to
China ( 2400 units). Many parts
of the country are still in great
deficit of power. Huge
customer base and with
improved per capita income,
huge potential for growth.
Contribution to the growth of
the nation.
 To set up thermal
power plants to tap the
opportunity which is
sustainable, profitable
business.
 The thermal power
plants is set up
considering lower
gestation period , lower
investment /MW, lesser
environment issues
compared to nuclear &
hydro and much
improved Plant
Availability and Plant
Load Factor ( PLF)
compared to solar &
wind power plants.
2. Existing constraints in
the sector ( land
availability, statutory
clearances,
The socio-politico-geographical
conditions in the country act as
constraints to the need.
Obtaining the required
clearances for land, coal, water
etc is getting tougher by the
The group took up the setting
up of its thermal power plant at
Mundra, Gujarat, a non
agricultural area , served by our
port for coal import, availability
of abundant water, thinly

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coal availability,
transmission lines
,water etc).
day. The issue of R& R for
project impacted people( PIP)
is also a great challenge and
becomes a big liability as per
past experience with other
power developers.
populated , free of forest &
sanctuaries and relatively
unaffected by local socio-
political interference. Adani
power developed its own
transmission lines ( AC & DC)
to reduce dependency on Govt
established transmission lines.
3. Local vendors
manufacturing
capabilities,
technology and
alternative sourcing of
equipments.
Indian Power plant equipment
manufacture ( primarily BHEL)
has very limited manufacturing
capacity( only appx 7000 MW
yearly), and is loaded with
order booking from other
competitors. The existing units
in the country were of
maximum size of 500 MW and
sub-critical.
Adani Power explored the
equipment sourcing externally(
from China having equipment
manufacturing capacity of
100000 MW yearly) to get the
benefit of faster delivery,
improved technology(
supercritical), bigger unit sizes,
cost benefit etc.
4. Challenges of
resources availability
& mobilisation,
funding
The existing coal mining
capacity in the country was
limited . Several environment
& socio-political factors were
proving big constraint for future
mining development,
overloaded railway network
which is used for coal transport
across the country, poor quality
of coal ( very high ash content),
limitation of local banks &
funding agencies to finance the
power projects, inadequate
skilled manpower
Adani Power acquired mines in
Indonesia & Australia and
developed mining infrastructure
there, developed own port and
railway lines, purchased own
fleet of ships for coal transport
from overseas mines,
established mining division.
Adani Power collaborated with
various national & international
banks / financial institutions/
investors and thru equity
market arranged the funding for
the project.
5. Organisation strength &
weakness.
Being new entrant into the
sector, we need to built up on
our strengths and to explore
/devise measures to improve
upon our weaknesses. This will
help us develop & implement
our strategy on long term basis.
Visionary Leadership, team of
highly experienced
professionals, integrated
business model from mining to
transmission, diversified
business model with exclusive
mining, trading, logistics,
Engineering & project
management entities to

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complement our power
business. Adani Power
established offices in China,
Singapore, Indonesia, Australia
and several other places to
stream-line, co-ordinate &
expedite the project
deliverables. Established
modern training centre with
latest state of the art technology
with simulators for upgrading
the operational skills of
existing employees / new
joinees.
6. Immediate capacity
setup and future
capacity expansion
potential.
To identify the opportunities(
present / future) and determine
the scalability required .
Adani Power ventured into the
power business by setting up 2
units of 330 MW each capacity
at Mundra( Phase-I).
Subsequently, 2 additional units
of 330MW each and 5
additional units of 660 MW
each capacity were set up there
to avail the opportunities in the
expanding power business in
the country.
7. Project management
setup
With changing times, the
modern project have become
very large and complex. The
measurable bench marks of a
project with respect to time,
cost, quality, safety &
productivity have attained
newer heights. Hence, well
developed & extensive project
management practices are to be
implemented from the inception
of a project.
Adani Power established
dedicated project planning,
monitoring & controlling group
at Corporate as well at site
level. This has resulted in
effective monitoring,
management & control of
project deliverables like
materials, drawings, resources.
It has helped in streamlining the
co-ordination with external
statutory bodies for approvals/
clearances as well EPC
contractors, consultants,
vendors & suppliers.
8. Competition
The emerging opportunities  Outsourced the

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lead to emerging competition.
Being the new entrants and the
scale of goals we set up for
ourselves( 20,000MW by
2020), we need to implement
innovative ways, be agile and
decisive. We have the target to
achieve the generation capacity
in only few years compared to
our long existing competitors.
equipment from China
to gain on time ,cost,
proven technology
 Extensive
mechanization with
additional mobilization
of equipment.
 Deployment of
experienced team from
the Power sector
 Deployment of
established contractors
/vendors with market
proven credentials and
having big resource
pool.
 Setting up own
inspection & expediting
team at China.
 Acquisition of mines,
ships, development of
port, transmission lines.
Our integrated business
model provides us
tremendous competitive
leverage over our
competitors.

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3. Generic Strategy Deployed by Adani Power Group :
Adani Group has focussed on integration of power business to cover the entire value chain from
Mines to Transmission.
3.1 Low cost provider strategy:
We are selling most part of power in bulk to State Electricity Boards under long term Power
Purchase Agreements ( PPA) which were won against a competitive bidding . The surplus power
would be sold through our Power Trading Division on merchant basis to customers mainly State.
Electricity Authorities and bulk consumers. Power sold on merchant basis would depend on
demand and supply gaps and opportunities.
3.2 Broad differentiation strategy:
Seeking to differentiate the company’s product offering from rivals’ in ways that will appeal to a
broad spectrum of buyers. We have established the facility to transmit power at high voltages from
220 KV to 400 KV AC and +/- 500 KV HVDC at frequency matching to grid frequency so essentially
power as a product from all bulk power. The HVDC power transmission has lesser transmission
loss compared to AC transmission and the threat of unauthorized power pilferage during
transmission is also controlled.
4. ‘SWOT’ analysis for internal and external environment:
An analysis of internal and external environment for Adani Power business using SWOT analysis is
undertaken as below.
4.1 Strengths:
 Visionary Leadership
Visionary leadership of the Chairman Sh. Gautam Adani with Right world view, Right Knowledge
and Right conduct having full trust in core team enabled it to acquire the position among top
business groups in India within a short span.

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 Execution Competence:
Successful execution and commissioning of 4620 MW thermal power plant at Mundra
Gujarat. It is the largest coal based thermal Power Plant in the country and completed in
record time.
Setting up 1000 km of +/-500KV HVDC transmission lines from Mundra, Gujarat to
Mahendragarh , Harayana. It is the first venture of its kind in the private sector in the
country.
Successful commissioning of 40MW Solar Power Plant at Nalia, Gujarat in record time.
 Speed of Project Execution:
To maintain leadership in market it is very important to implement the project at rapid pace from
conceptualization to commissioning. Adani Power has set up a benchmark for other players by
achieving completion of Mundra TPP as under:
Unit 1 (330 MW): 34 Months.
Unit 5 (660 MW): 36 Months.
 Integrated Power Business:
Adani Power undertook the process of Power business integration by developing the supply chain
from mines development to power transmission. It was undertaken to meet the long term business
goals and also to be prepared with the rapidly changing power business environment in the country
and abroad. It is the only corporate which has covered all aspects of Power Generation like Coal
(Mines in Indonesia & Australia), owning port for handling coal cargo (Mundra, Dahej in India &
Abbot port in Australia), own infrastructure company who can execute Power Project on EPC basis
(Adani Infra (India) Limited), own Operation & Maintenance Group, developing HVDC & high
voltage transmission lines connecting its generation facilities with national grid.
 Brand Name:
Adani Power is the largest power generation company (in private Sector) with capacity of 4620 MW
( thermal ) and 40 MW ( Solar) .

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 Experienced and Cohesive Team of Professionals:
Highly experienced team of professions from various disciplines of Engineering, Procurement,
Inspection, Execution, Project Management & Techno-commercial.
The Indian team is ably supported by our overseas team of international professionals in the field of
overseas mining, procurement, ports & infrastructure development in countries like Indonesia,
Australia, Singapore etc.
4. 2 Challenges:
 Coal Supply :
The limitation & constraints in mining sector in the country is causing big anxiety for assured
coal supply to existing and upcoming power plants.
 Increased pricing of imported coal due to imposition of additional duties/ taxes in the
sourcing country like Indonesia( Adani’s principal coal importing source)
 Land ,water , mines allotment for present & future projects.
 Statutory clearance for upcoming projects.
 Inadequate long term PPAs
 Inadequate transmission lines for power evacuation
4. 3 Opportunities:
 Adani’s integrated power business model
It provided leverage in the present market environment
 Scale of Operation :
By setting the largest thermal power plant and solar power plant in the country , Adani is
better prepared to provide power to different segments compared to its competitors.
 HVDC transmission Line:
By setting up 1000 km of HVDC line, Adani is in position to access and supply the power

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deficient areas of Haryana, Westerns U.P. Delhi, Rajasthan and Punjab.
 Power Trading :
Opportunity to sell power in open market thro’ our power trading division and gain better
rates on power sold.
4.4 Threats:
 Availability of fuel:
Though India has huge reserves of coal available, yet the mining capacity limitation, socio-
political issues coupled with bureaucratic system is proving bottleneck to provide assured
coal supply for existing as well as upcoming power projects.
 Development of Mining Infrastructure and coal transportation have not kept pace with
establishment of power generating stations.
 Alternate sourcing of coal by import is becoming non-viable due to increased prices unless
tariffs are revised.
 Environmental Clearance:
Due to global awareness on global warming, GOI has revised the guideline for environment
& forest clearances for new projects. More stringent guidelines and bureaucratic approach
results in delayed clearances.
 Land availability:
Land requirement for setting up Power Projects is substantial and this calls for acquisition
of land in big way involving relocation of local habitants. Land acquisition and relocation of
local habitants are getting converted in to political issues and impacting project
implementation.
5. Industry level ‘CSF’ for Adani Power Limited:
 Ability to cover complete supply chain from producing / sourcing the raw material mainly coal
today to trading of final product i.e. power
 Ability to implement projects faster as compared to other players.

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 Ability to get fuel security (coal in adequate quantities and at affordable prices) as compared
to other players in power
 Ability to access the market /customers in wide geographical locations as compared to
other power developers.
5.1 Firm level ‘CSF’ for Adani Power Limited:
 Developing expertise for handling EPC business by acquiring desired knowledge & skill.
 Timely addressing to the concerns of the stakeholders.
 Project Financing.
 Competent, Motivated and Cohesive Team of Professionals.
 Strong Risk Management competency.
6. Innovation implemented by Adani Power Limited:
 Introduction of Supercritical technology
 Introduction of HVDC in the private sector
 Procurement Strategy
 Valve Hall Building in Steel Structure
 Finalization of Design Basis Reports, Specifications and Tenders while awaiting clearances/
approvals.
 Standardization of Technical Specification for infrastructure facilities:
7. Promoting a culture of “Ownership of Aspirations, Intellectual
Leadership and Speed:
 The desire and effort to excel, open to new ideas & learning, coherence in thought-process
& strategy, dedication and integrity demonstrated by top leadership have set examples for
others to follow.

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 Systems are in place to encourage decision making at all levels, removal of bottlenecks and
hurdles within shortest possible time. It is a driver for speed of project implementation.
 Thrust on training and development of every individual. Identified Individuals Development
Plans incorporating formal training and On Job learning.
 Well defined roles, job descriptions, reporting relationships, jointly agreed and signed key
result area increase commitment of employees.
 Fair and Transparent reward and recognition scheme is in place.
 A unique and generous Incentive policy has been formulated and implemented for all
employees. The incentives are linked to achievement of the project milestones.
+ =
Pankaj Shukla
Adani Infra ( India) Limited
Mundra

EDPM Report # 2_ Pankaj Shukla

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