ADR MOTORS PVT. LTD.
Presented by:
Achala Simha (PGDM 12183)
Dhrubajyoti Sahu (PGDM 12136)
Rheetam Mitra (PGDM 12156)
Scenario“You work as a GM in a car manufacturing company. Recently, due to a major grid collapse, your production came to a standstill across several units in northern India. This is affecting your work. You wish to set up an alternate power-generating unit and wish to harness wind/hydel energy. Present your plan to your board."
Who we are?o One of the leading car manufacturers in India for past 2
decades
o Head-quartered in New Delhi
o Chief commercial vehicles in the domestic market are :• Zinga (1tonne)• Suave (2tonnes)
o Global brands are :• Postos (1tonne)• Nortol (2tonnes)
o Profit making company• Total Sales growth by 15% (~8 lakh units) - YoY• Net revenue growth by 25% (~80,000 Cr) - YoY• Profit growth by 70% (~7000Cr) - YoY
Our Presence
OverseasParisLuxembourgSydney
North India
Nalagarh (HP)Gurgaon (Hariyana)Faridabad (Hariyana)
South IndiaChennai (Tamil Nadu)Hosur (Tamil Nadu)Trichy (Kerala)
Recent Concerns
• Heavily dependent on PGCIL
• Heavy losses due to frequent black outs in plants situated in Northern India
• Total losses amounting to Rs. 565crores
Mar
'12
Apr'12
May
'12
Jun'1
2
Jul'1
2
Aug'12
0
50
100
150
200
250
300
350
400
450
5 10 8 6
80
4
2550 40 30
400
20
Losses due to blackout
Hrs of blackoutLosses(in crores)
Current power consumption and expenses
• Average daily total power consumption per manufacturing plant = 35 MW (Inclusive of assembly line and auxiliary consumption)
• Daily cost for 3 plants in North India (20hrs/day) =1.4 Cr
What is Wind Energy?• Non conventional source of energy as against thermal or hydel
energy• It mainly consists of wind turbines• Essentially a converted form of solar power• Converts the kinetic energy present in the wind into more useful form
of energy such as mechanical energy and finally electricity• Reduction of dependence on the traditional form of electricity through
power grids
Advantages of Wind Energy• The capital cost is slightly higher than fossil fuel power
plants but much lower than a solar power plant• Usually it ranges between 400 crores to 800 crores for a
100MW• The Running Cost of a Wind Farm is very low as the fuel
cost is zero and operations and maintenance costs are low too
• It will be used for captive power generation• Heavy tax benefits in India• Construction in minimum time (8-10 months) and a short
payback time of another 3-8 months
Feasibility study for Wind Farm
Place (in Rajasthan)Annual average air
density (kg/m3)Annual average wind
speed (m/s)
Devgarh 1.11 5.52
Phalodi 1.14 6.3
Jaisalmer 1.14 6.5
Feasibility study for Wind Farm (Continued..)
• Jaisalmer could be the most suitable of all the three places
• There’s ample space to setup a 500 acre wind farm
Average distance measurement for transmission lines
• Jaisalmer to Gurgaon - 750 km.• Gurgaon to Nalagarh - 331 km.• Gurgaon to Faridabad - 60 km.
A total of 1141 Km.
Rating of Suppliers
Turbine manufacturer
Suzlon Energy Ltd.
Vestas Wind Technologies India Pvt. Ltd.
Alstom India Ltd.
Model Name S80-1500 V82-1650 ECO-1800
Capacity(KW) 1500 1650 1800
Score 10.2 10.13 10.55
Detailed Project Costs
S. No. DescriptionRate/unit
(Rs. Lakh)Qty. or no. of
unitsAmount (Rs.
Lakh)
1.
Purchase of land, land
development and fencing
charges
Lump sum amount
500 - 520 acres(80*6.5 acres) 210
2.Supply of WEG
of 1.8MW capacity each
500.00 80 40000
3.
Packaging , handling, loading ,
transportation, unloading and
insurance cover till erection of
WEGs
10.00 80 800
Detailed Project Costs (continued..)
S. No. DescriptionRate/unit
(Rs. Lakh)Qty. or no. of
unitsAmount (Rs.
Lakh)
4.Foundation and
other civil structures
3.0 80 240
5.Electrical and Transformers
110 KV10.0 80 800
6. Erection and Commissioning 8.0 80 640
7.
Other project cost including charges for
infrastructure development @ Rs. 40.00 Lakh per MW for 110
MW
40.00 1 40
Detailed Project Costs (continued..)
S. No. DescriptionRate/unit (Rs.Lakh)
Qty. or no. of units
Amount (Rs. Lakhs)
8.Cost of 110
KV OHT Line 10.0/KM 1141 KM 11410
Total 54140
Feasibility Study for Hydel Energy
Hydro Electric Power Plant
1. Bhakra Dam, Punjab
2. Nathpa Jhakri Dam, H.P.
Advantages of Hydel Energy• It is a renewable source of energy and non-polluting in nature• Fuel cost of HEP plant is inflation-free and reduces with time, thereby brings down the
overall per unit cost• HEP plants have a long useful life, extending to 50-100 years• HEP plants are usually set in remote/backward areas, thereby lead to economic
development• Storage type HEP plants can be used for multiple purposes like flood control, irrigation
etc.
Project Cost EstimatesParameters Rs. Cr.
Per MW Cost 5.5
Total Project Cost 605
Completion Time Period (Months) 61
Interest During Construction 112
Cost of Transmission Network Setup 100
Total Cost 822.5 (Apprx.)*
*Hydro Power Vs Thermal Power: A Comparative Cost-Benefit Analysis Adesh Sharma, AIPL (Power Sector), India
* Keeping the PLF at 45%
Comparison
Wind Energy
• Life expectancy is nearly 20 years• Cost is around 550-600 crores• Highly subsidized by the Govt.• Almost ‘zero’ operational costs• Best as an immediate alternative
Hydel Energy
• Life expectancy is 50-100 years• Cost is around 800-850 crores• Marginal benefit (output) is higher• HEP plant is considered as the
best choice for serving peak load• Cost of generation is cheaper than
even Thermal Power Plants• Suited for any future expansions• Best as a long-term solution
!