The purpose of this research undertaking is to explicate schemes for Punj Lloyd to perforate the emerging Indian Nuclear Power Market.
3.0 Aim:
To reexamine bing theories, constructs, empirical work and relevant information on command schemes and undertaking selling for EPC companies
To place the issues and challenges and to research chances for Punj Lloyd in relation to the approaching atomic power sector
To measure the competences of Punj Lloyd and measure a propos rivals.
To do recommendation and to explicate schemes to set up Punj Lloyd as a successful market leader and to prolong the growing.
4.1 Introduction
The context of this research undertaking is to grok the important developments in atomic power market every bit good as the company overview and the necessity of such research for the company.
4.2 Area of Research
The research country of this undertaking focuses on atomic power sector of India. The route map for this undertaking will cover assorted stages of activities in sequence get downing with placing the issues and challenges related to upcoming atomic power market and chiefly concentrating on chances for the approaching atomic undertakings. Assorted sub-activities will be carried out in each stage of activity.
Assorted surveies have been conducted on market research of emerging Indian atomic power sector but this study will concentrate on order winning/project winning schemes for atomic power works building by Punj Lloyd.
The foundation of this study is based on the guidelines issued by the Department of Atomic Energy on ‘Peaceful Uses of Atomic Energy ‘ of India.
4.3 Overview of important development in India ‘s atomic energy sector
Historically, India had been barred from the international trade in atomic engineering owing to concerns of atomic proliferation. However, atomic power for civil usage is allowable. India ‘s civil atomic scheme has been directed towards complete independency in the atomic fuel rhythm without fuel or technological aid from other states. Till mid-90s, the atomic power reactors of India were counted among the universe ‘s lowest capacity factors, bespeaking the proficient incompetence, but it rose imposingly from 60 % in 1995 to 85 % in 2001-02 and in 2008-10, the burden factors dropped due to shortage of uranium fuel.
Recently, India and the United States approved a trade to promote trade and co-operation in atomic energy. In September 2008, the Nuclear Suppliers Group ( NSG ) amended its guidelines to take India from the list of states barred from atomic trade. As a consequence, India is now permitted to import Light Water Reactor ( LWR ) engineering every bit good as high class Uranium to heighten atomic power production in the state.
India presently derives 2.6 % of its entire electricity demand from atomic energy. India is be aftering to increase this portion to 10 % by 2022 and 26 % by 2052. This translates to an addition in installed atomic power coevals capacity from the current degree of 4,120 MW to 40,000 MW by 2020 and 250,000 MW by 2050. To run into these marks, India will necessitate to put US $ 65 billion between 2010 and 2020 in new power workss.
India ‘s Nuclear power market presently is a regulated market which operates under the guidelines of Government of India.The Nuclear Power Corporation of India Limited ( NPCIL ) is responsible for design, building, commissioning and operation of all atomic power workss in the state. NPCIL, a public sector endeavor, incorporated and registered under the Indian Companies Act, 1956 in September 1987 is under the direct administrative control of theA Department of Atomic Energy ( DAE ) of the Government of India.
4.4 Company Overview of Punj Lloyd
Punj Lloyd Group is a diversified planetary pudding stone supplying technology, procurance and building services in oil and gas, substructure and petrochemicals, and with involvements in defense mechanism, air power, atomic, marine and upstream sectors.
It is one of the largest technology and building companies ranked 107 in Top 225 Global Contractors for the twelvemonth 2008 providing integrated design, technology, material procurance, field services, building and undertaking direction services for energy industry and substructure sector undertakings.
With a turnover of US $ 2.6 billion, the Group ‘s three trade names – Punj Lloyd headquartered in India, Sembawang Engineers and Constructors in Singapore, and Simon Carves in the United Kingdom, each with its ain subordinates and joint ventures, converge to offer complementary services, rich experiences and the best patterns from across the Earth. A dynamic endeavor, the Group explores and pursues the tremendous chance in markets globally. Partnering with the best in their ain spheres, Punj Lloyd brings engineering and quality to clients worldwide and reiterates its belief of presenting the best, in services and fabrication. An first-class path record for successful completion of undertakings within tight agendas, lends credibleness to the Group, promoting clients to swear it with repetition orders.
Punj Lloyd Group has relevant past experience in building atomic power undertakings through its subordinate Simon Carves Ltd UK, which has expertness in FEED, Detailed Engineering and Commissioning of atomic power undertakings. It has worked on the design and building of ‘Magnox ‘ Power Reactor Stations in UK. It undertook and successfully executed the technology ; procurance and building for New fuel Oxide Plant, Vitrification Plant for British Nuclear Fuel Limited.
4.5 Decision
As stated earlier, India needs to develop its atomic power coevals capablenesss if it is to run into its turning demands and has planned addition in the atomic power portion from current 2.6 % to 10 % by 2022 and 26 % by 2052. The same will non be possible without Private Public Partnerships ( PPPs ) ; though, at present, Nuclear Power Corporation of India Ltd ( NPCIL ) is the exclusive authorization oversing India ‘s civil atomic plan.
Punj Lloyd recognises that this country offers long term growing chances for its technology and building concerns. Over a period of clip, the undermentioned concern chances will originate for it in the atomic power coevals concern:
Engineering, procurance and building
Decommissioning of Nuclear Power Plants and atomic waste direction
Nuclear Fuel and Consultancy
Operationss and Care
The focal point of this research concerns the possible chances in Indian atomic power sector. Currently Punj Lloyd is concentrating on the complete prison guard undertaking executing that includes Engineering, Procurement and Construction and Successful Commissioning of the atomic power undertaking.
With the proclamation of new atomic power undertakings by NPCIL, this research undertakings will enable Punj Lloyd to concentrate on possible avenues and formulate schemes in set uping it as a successful order victor for the technology, building and commissioning of these atomic power undertakings. This research undertaking besides enables Punjllyod to make distinguishable competitory advantage thereby guarantee the sustained growing.
5.0 LITERATURE REVIEW:
To be able to supply valuable recommendations to Engineering, Procurement and Construction ( EPC ) companies, legion countries must be addressed. This can merely be done through systematic scrutiny and critical rating of important theories and constructs.
In order to transport out the literature reappraisal, the undermentioned countries are to be addressed:
Command Schemes
Undertaking features
Customer ‘s features
Contractor ‘s features
Characteristic of relationship between clients and contractor
Assorted pieces of research have been studied as a portion of this literature reappraisal such as command schemes, undertaking selling and system merchandising ( Cova etal. , 2002 ; Cova et al. , 1994 ; Dubois & A ; Gadde, 2000 ; Hobbs & A ; Andersen, 2001 ) , relationship selling ( Gummesson, 1990, 1991 ; Gronroos, 2000 ) ; uncomplete contract theory ( North,1996 ) , the literature on partnering in building industry ( Barlow & A ; Jashapara, 1998 ; Bresnen & A ; Marshall, 2002 ; Sai-On et al.,2003 ; Scott, 2001 ; Turner & A ; Simister, 2001 ) . Undertaking selling research besides emphasizes the function of relationships and webs or surroundings in undertaking selling ( Cova, Mazet, & A ; Salle, 1996 ) .
5.01 Command Schemes:
Construction command procedure is related to the systems attack, which is used to pattern the behavior of houses as observed by Male [ 1991 ] . He established that the contractors define a strategic sphere at the corporate scheme degree with the sphere to determine the market dimensions within which model, the contractors plan to run and vie for that work. Contractors so choose the contracts that they wish to offer for in conformity with their concern scheme degree. For that command, the cost estimation is formulated at the operational scheme degree and reverted to the concern scheme degree for make up one’s minding the appropriate degree of mark-up. Harmonizing to Skitmore [ 1989 ] , merely commands which are derived from a elaborate cost estimation along with a realistic mark-up are truly competitory, whereas, other activities are procedural and termed non bona-fide. Commands therefore, may be classified as serious or non-serious commands.
Contractors adopt assorted schemes to heighten the chance of successful command. Fine [ 1975 ] has identified several schemes for successful command including random command, selective command and badly competitory command. Stone [ 1983 ] has suggested that lower criterions of work or efficiency may be accepted due to be restraints. The cardinal factors that affect command determinations are categorised as occupation features, economic environment and competition status. Based on similar principle, factors act uponing offering behavior were grouped by Drew and Skitmore [ 1993 ] as the behavior of contractors as a group depending on market conditions, figure and individuality of rivals ; single contractor behavior and behavior toward the features of the contract.
Flanagan and Norman [ 1982 ] identified that command behavior is affected by the size and value of the undertaking, and building and managerial complexness required to finish it ; regional market conditions ; current and jutting work load of the tenderer ; type of client and undertaking.
Flanagan and Norman examined the command public presentation of little, medium and big contractors in regard of type and size of building work. They discovered that when offering the little contractor considered both the type and size of building work, whereas the big contractor was more successful on command for big contracts and the medium contractors ‘ fight was non related to the type and size of building work.
Researcher agrees that the corporate degree scheme plays a important function in taking the contract. To be the command to be competitory research worker agrees to the fact that detailed cost estimation with realistic mark-up is must. Researcher is besides inclined with the impression of offering behavior affected by the size and value of undertaking.
5.02 Undertaking Features:
Planing and constructing of a atomic power works is a powerful undertaking as it involves batch of uncertainness and complexness. Construction activity is based on a really strong committedness towards quality owing to the nature and quantum of hazards associated to a atomic works. Besides, such workss are extremely capital intensive undertakings necessitating a high degree of dedication for the successful executing of these undertakings.
The pick of the contract design entailed by the client is analysed on construct of uncertainness as explained by institutional economic sciences ( North, 1996 ; Williamson, 1985 ) and by business-to-business selling bookmans ( Hakansson, Johanson & A ; Wootz, 1977 ) . Uncertainty refers to the undertakings harmonizing to the undertaking selling literature ( Barlow & A ; Jashapara, 1998 ; Cova et al. , 2002 ; Smyth, 2000 ; Turner & A ; Simister, 2001 ) .
For a client, the uncertainnesss are connected with development of specifications, the dealing method and besides, with the provider ‘s ability to finish the undertaking successfully ( Cova et al. , 2002 ; Smyth, 2000 ) .
The research worker besides believes that the uncertainnesss in footings of cost and clip impact on successful executing of the undertaking.
The jobs, demands and specifications can non be exactly defined by a client if the undertaking is technically complex and the features of supply market are heterogenous and unstable. ( Cova et al, 1994 ) . The clients may so near experts to decode the overall complexness of a given technological field in order to diminish associated hazards due to technological incompetency. In such state of affairss, bid-winners are by and large involved from the ideation phase of the undertaking to assist the client in killing the issues from the beginning. Therefore, if the perceived hazard is higher for a client, he may choose for coaction or co-development ( Guillou et al. , 2003 ; Hobbs & A ; Andersen,2001 ; Kadefors, 2004 ; Scott, 2001 ; Salle & A ; Silvestre, 1992 ; Turner & A ; Simister, 2001 ) .
Researcher agrees on the political orientation of the taking aid from the expert when the undertaking is technically complex and the associated hazard is high.
In instance of a contract antique ante ( dependent on a future occurrence ) , the client may non be able to utilize the traditional competitory command processs for the undertaking ( Brousseau and Fares, 2000 ) . In such instances, arm ‘s length attack may non be considered and open-contracts are by and large adapted on common trust of the parties ( Kadefors, 2004 ) . Cova, Damgaard and Mazet ( 1993 ) , Scott ( 2001 ) , Turner and Simister ( 2001 ) , every bit good as Good and Schultz ( 1997 ) have all outlined the complexnesss of undertakings owing to contractual attack of the client.
Researcher agrees on the point of following different contractual attack harmonizing to the changing complexnesss of undertakings.
5.03 Customer ‘s Features:
It has been researched and observed that few clients appear to be of course unfastened to early co-operation with a contractor alternatively of dividing the design and the executing stages ( Sai-On et al. , 2003 ; Scott, 2001 ) . Cova et Al. ( 1996 ) points out that joint development of demand largely occurs when the client is culturally unfastened to a direct interaction with the providers. Sai-On et Al. ( 2003: 341 ) besides stressed the being of “ behavioral obstructions to cooperative catching ” . This was besides confirmed by Scott ( 2001 ) and by Brennan and Turnbull ( 1999 ) for whom the client ‘s “ concern civilization ” or “ managerial orientation ” must advance an ambiance of trust and common regard to prosecute in a relational contract.
Customers belonging to public sectors appear to be really stiff and follow formalized processs curtailing the possibility of early battle with contractors.
Further, clients holding internal design capacities besides appear to be more loath to depute the design of preparation to an external bureau or consultant/supplier ( Guillou et al. , 2003 ) . On the other manus, the clients who lack in the design capablenesss are inclined to trust on the expertness of advisers or their providers on advice for an appropriate attack to their undertaking ( Smyth, 2000 ) .
Researcher argues on the point of being loath on deputing the design of preparation to external bureau if client has the designing capableness. Deputation to an external bureau is non limited to capablenesss but besides is a consequence of cost, clip, co ordination and the flexibleness involved in undertaking.
5.04 Contractor ‘s features:
The built-in features of a contractor ‘s concern civilization in footings of ends and values must be compatible with the client to make an ambiance of trust. This will finally take to co-development of the undertaking ( Bresnen & A ; Marshall, 2002 ; Costantino & A ; Pietroforte, 2002 ) .
Co-development by and large focuses on the pre-tender phase of the undertaking. This requires the contractor to be in regular contact with client for an early battle in the undertaking design and contribute to development of the undertaking. It is besides pertinent to observe that research reveals that grade of freedom to travel in a undertaking decreases over transition of clip and in proportion with the grade of irreversibility of undertaking determinations ( Milder 1995 ) .
Researchers believes that ambiance of trust can non merely related to client ‘s compatibility with contractor ‘s ends and values but besides the contractors past experience of successful executing of undertaking.
Features of relationship between client and
Contractors:
For co-operation and co-development for a undertaking, it is indispensable that the client and contractor/supplier have common trust, committedness and lower limit of shared ends. Undoubtedly, trust plays a important function in a fruitful coaction ( Gummesson, 1990, 1991 ; Hakansson & A ; IMP Group, 1982 ; Ring Smith & A ; Van de Ven, 1994 ) . Trust strengthens a relationship and reduces the factors doing struggles among parties.
In a building undertaking, three qualities are required for the edifice common trust: ability, benevolence and unity.
The sense of committedness of parties helps them to develop needed resources, attempts and investings to develop a successful relationship ( Gronroos, 2000 ; Moorman, Zaltman & A ; Deshande , 1992 ) . The committednesss are shown and proved “ believable ” by the specificity of the assets or investings made by
the parties to develop the relationship ( Alix-Desfautaux, 1995 ; Michel et al. , 2003 ) .
The creative activity of a co-operative relationship between two parties relies on a minimal degree of shared ends and outlooks.
Researcher agrees on the credibleness of contractor committednesss in successful development of relationship with the client
5.6 Decision:
There are several literature reappraisals on the command schemes and the undertaking selling which are critical for market incursion for EPC companies. Incorrect pick of the command scheme leads to losing the atomic power undertakings. The deficiency of cognition is specific to competitory command and undertaking selling in Indian public sector enterprises operates in atomic power which is extremely committed to socialism.
6.0 Methodology:
Research is an active, persevering and systematic procedure of enquiry in order to detect, construe or revise fact, events, behaviors or theories, or to do practical applications with the aid of such facts, Torahs or theories.
A good blend and systematic attack are required between the practical state of affairss and theoretical applications to be able to accomplish the needed degree of success in any venture. The first undertaking is to understand what the modern-day techniques present for a research undertaking and take the one which best full fill the aims. Completing every measure decently will let farther advancement in the research. Hence the methodological analysis will make up one’s mind what manner of analysis is done and finally the result of the research.
A multi-strategy attack will be employed to accomplish the purpose and aims of this research. Triangulation will supply the stableness by equilibrating the strength and failing of different methods of research Tricker ( 2004:205 ) , Gill and Johnson, ( 2002:202 ) , and Mason ( 2002:33 ) .
The attack research worker will follow in order to transport out this research is inductive attack instead than deductive. Researcher will get down with the reviewing processes and events takes topographic point in the administration, analyzing the collected informations and so continuing to theory preparation from this information.
For transporting out this research undertaking, I will follow these three manners:
Desk-based research
Field-based research
Case survey
6.1 Desk-based Research:
Since this research paper requires a deep apprehension of current pacts and understandings, present scenarios and available informations of the industry, the desk-based research is the first measure. Researcher will reexamine assorted diaries, articles, on-line resources and empirical stuff to garner information necessary for analyzing the attacks required for technology and building industry to perforate the approaching atomic power market. This is a uninterrupted procedure which will be the beginning of informations during the full continuance of the undertaking. The advantage associated to it is the easy entree of cognition beginnings. The information gathered through this method will pave manner for necessary start required for the survey.
The literature reappraisal and the filtered specific informations provide the limited information which necessitates the aggregation of the primary informations.
The authorities guidelines and policies are a must-read to under the pattern in the Indian atomic power sector. Review to these guidelines is besides a necessity. These guidelines can be obtained through diaries and on-line resources etc.
To derive the apprehension of the Indian Nuclear Power Sector some academic and concern diaries, newspapers, magazines and administration ‘s study informations will be used.
6.2 Field-based Research:
Qualitative informations will be used to transport out research farther. There are legion ways to garner primary informations. Harmonizing to the aims of survey, research worker will collate the primary informations through semi-structured interviews and questionnaires.
For the intent of understanding the patterns employed in the atomic power sector, it is necessary to transport out studies through semi-structured interviews. It will besides be indispensable to carry on face-to-face interviews with Nuclear Power Head of Department of Punj Lloyd, Senior Manager Nuclear Power and Marketing Head ( Power ) , which will supply the penetration and cognition of the company ‘s policies and relevant information. The advantages of semi-structured interviews are that depending on the responses, specific countries of involvement can be examined in more inside informations.
In order to understand the whole kineticss of Indian atomic power sector, the interview with two rival will besides be conducted covertly as “ it is frequently argued that the people may act otherwise when cognizant that they are under observation ” ( Gill, Johnson,2002:146 ) . This will originate the trust on secondary beginning of information.
Secondary beginnings of informations can be categorised into three chief subgroups: documental informations, study informations and multiple beginnings informations ( Saunders et al, 2003 ) . Access to company ‘s web site and dependable public web sites will supply some extra informations required to full make full the intent.
In order to formalize the inquiry being asked two pilot trials will be conducted which will supply the chance to modify these inquiries if necessary.
The interviews may be recorded on tape with consent. Some interviews may be conducted on phone or on video conference. This transcript will be coded and analysed. Datas collected from the interviews will be farther used to place the subjects and commonalty in the interviewee ‘s responses. This information will be used to build the study questionnaire, to be posted to 40 participants. The study is limited to 40 participants because of the restraint on handiness of cognition based people on atomic sector.
6.3 Case Study:
Harmonizing to ( Lamnek, 2005 ) : “ The instance survey is a research attack, situated between concrete informations taking techniques and methodological paradigms. ”
Case survey can be a survey of an single, group or communities. Case survey in the instant instance is related to the Indian atomic power sector for researching avenues and explicating schemes for Punj Lloyd to be a successful order victor.
Case surveies can be based on any mix of quantitative and qualitative evidence.A Single-subject researchA provides the statistical model for doing illations from quantitative case-study data.A
The results of field-based research ( i.e. the primary and the secondary information ) , will be gathered and studied in order to build the instance survey.
“ The instance survey has the considerable ability to bring forth replies to oppugn ‘why? ‘ , ‘what? ‘ and ‘how? ‘ ” ( Saunder et al, 2003 ) . After sing all the thoughts together with the survey the reply to the inquiry “ What will be the scheme of Punj-Lloyd to perforate the approaching Indian Nuclear Power sector ” can be deduced thereby fulfilling the purpose.
7.0 Ethical motives:
Research Ethics in research refer to the model of wide ethical rules and responsible behavior of research relevant to field research. It deals with the aggregation and airing of information during a research.
The Economic and Social Research Council, UK ‘s prima research and preparation in “ Research Ethics Framework ” defines ‘Research moralss ‘ as the moral rules steering research, from its origin through to completion and publication of consequences and beyond – for illustration, the curation of informations and physical samples after the research has been published.
I will endeavor following these rules of ethical behavior ( adapted from Shamoo and Resnik – Responsible Behavior of Research ) during my research undertaking:
Honesty
I will candidly describe the informations, consequences, methods and processs followed. I will non manufacture, distort or belie informations and will non lead on co-workers, allowing bureaus or the populace.
Confidentiality
I will protect the confidential communications with Punj Lloyd and other bureaus. I will non uncover the confidential information gathered during this undertaking against the company or any other bureau supplying such information. I will guarantee that confidential paperss are stored adequately.
Informed consent
I will seek consent of the testee or interviewee or information supplier before carry oning the interview or study or collating any information. I will non seek consent through any deceitful agencies or by doing misrepresentation.
Privacy
I will guarantee that the line of privateness is maintained during the class of aggregation of information. I will guarantee that there is no misdemeanor of privateness of persons or groups due to my research.
Storage of information
I will guarantee that the information collated during the research and other informations or studies or confidential documents are stored in proper manner so that no other individual can entree such information or cause hurt utilizing the said information.
Coverage of accurate informations
I will guarantee that concluding study contains merely accurate information and does non incorporate any false or fabricated information. I will be careful of any carelessness in coverage.
Acknowledge the Intellectual Property Rights
I will seek permission to utilize the unpublished informations, methods or consequences for my research. I will non go against right of first publications or nay other signifiers of rational belongings. I will decently admit or recognition for all parts to research. I will non make plagiarism in any signifier.
Legality
I will obey the relevant Torahs and governmental policies during my research undertaking and its publication.
