A

Project Report
On
AN ANALYTICAL STUDY OF GAS INSULATED SWITCHGEARS AND TENDERING
PROCESS FOR GIS DIVISION
AT

CROMPTON GREAVES LTD. NASHIK

SUBMITTED
TO

UNIVERSITY OF PUNE
THROUGH

NAVJEEVAN INSTITUTE OF MANAGEMENT

NASHIK
BY

Mr. BHARGAV PRANAV VASANT

IN PARTIAL FULFILLMENT OF
MBA- II (OPERATIONS)

2012-2014
Under the Guidance of
Prof. PRITI KULKARNI MADAM
1

ACKNOWLEDGEMENT

I hereby take immense pleasure to express my gratitude towards Crompton Greaves

Ltd. for giving me an opportunity for the summer project at their esteemed organization.
I express my hearty thanks to Navjeevan Institute of Management and University of
Pune for providing the platform for getting the practical knowledge during 2012-2014
I am thankful to Navjeevan Education Society for their kind support. I am grateful to
Director of Navjeevan Institute of management for expert guidance.
I remain indebted to my respected guide Prof. Priti Kulkarni Madam and all my
teachers for helping, guiding and mentoring me to complete this work.
I would also like to thank those who supported me and provided prompt help for the
completion of this project successfully.

Bhargav Pranav Vasant

DECLARATION

I Mr. Bhargav Pranav Vasant hereby declare that this study project titled AN ANALYTICAL
STUDY OF GAS INSULATED SWITCHGEARS AND TENDERING PROCESS FOR GIS
DIVISION undertaken by me with the Organization Crompton Greaves Ltd. duration of two
months which in required for partial fulfillment for M.B.A. Course. I solemnly pledge that this
project is my genuine idea and conceptualization, framing and conclusions are all my own,
which I have generated owing to study undertaken in given market situations. I take total
responsibility for all the conclusions made in this study and their impact thereof on all
subsequent Research Studies.

Bhargav Pranav Vasant

Date

:-

INDEX 1
LIST OF CHAPTERS

SR. No.

PAGE NO.

CONTENTS

CHAPTER
NO.1

INTRODUCTION
1.1 INTRODUCTION
1.2 RATIONALE

CHAPTER
NO.2

PROFILE OF ORGANISATION
1.1 COMPANY PROFILE
1.2 PRODUCT PROFILE

CHAPTER
NO.3

REVIEW OF RELATED
LITERATURE

11

CHAPTER
NO.4
CHAPTER
NO.5
CHAPTER
NO.6
CHAPTER
NO.7
CHAPTER
NO.8

RESEARCH METHODOLOGY
1.1 OBJECTIVE
1.4 LIMITATIONS
DATA ANALYSIS, DATA
PRESENTATION AND DATA
INTERPRETATION

15
18

OBSERVATIONS AND FINDINGS

55

RECOMMENDATIONS

57

CONCLUSION

59

BIBLIOGRAPHY &
WEBLIGRAPHY

INDEX 2
List of Table
Page
SR. NO.

CONTENT
No.
Comparison between Air Insulated Switchgear and Gas Insulated

1.

32
Switchgear.

CHAPTER 1
INTRODUCTION

1.1 - INTRODUCTION
India emerging as a Super Power, and witnessing all round development in various
sectors like the Industrial, Agricultural, Cultural, etc. would require some basic resources in
ample amounts. One of them is the Electric Power. Understanding the ever increasing demand of
Electricity in India, the Power Sector utilities have started making use of advanced technologies
for the purpose of Power Transmission and Power Distribution. One of the most effective and
efficient technology in the field of power transmission and distribution is the Gas Insulated
Switchgear. In todays date when there are space constraints and alongwith the space comes the
Cost constraints, the GIS (Gas Insulated Switchgear) technology serves the purpose efficiently.
The Project attempts to study the conceptual importance of GIS as an emerging
technology in the field of power transmission and distribution. In addition to that, the project also
deals with the study of process of acquisition of GIS project orders by Tender Bidding Process at
Crompton Greaves Ltd. Nashik and to analyse the Market Potential for GIS for next five years.

1.2 - RATIONALE
The project instead of being a unidirectional path is a multidimensional approach towards
fruitfulness for the organization. It portrays a picture of future perspective and the step to be
taken not only to meet the increasing demand for GIS but also to create a dominating share in the
field of GIS manufacturers. It assists the organization to forecast the modifications that would be
required to done in terms of efficiency and effectiveness of the product.
Also, with the detailed study of tendering process the loop holes if any, could be traced
and could be worked on. It could even lead to new ideas so as to speed up the process and to
increase the possibility of getting the order. Alongwith the organization, the project helps the
Researcher in getting a broader view about the concept of Gas Insulated Substations, their
importance in the ever increasing economy and India, a potential market in upcoming years. The
study of tendering process clarifies many new concepts. Right from the definition to the various
important clauses involved in Tendering as a process is broadly clarified.
Prospective researchers who look forward to attempt a research on the Tender Process
could definitely get a basic idea and could start the research thereon. The determination of
Market Potential in upcoming years could help Government and Power Sector Utilities in
verifying there estimation regarding increase in demand of electricity and ultimately GIS.

CHAPTER -2
PROFILE OF ORGANIZATION

2.1 COMPANY PROFILE

9

CROMPTON GREAVES LIMITED (CGL) is Indias largest private sector enterprise. It

has diversified extensively and is engaged in designing, manufacturing technologically advanced
electrical products and services related to power generation, transmission and distribution,
besides executing turnkey projects. In 1875, a Crompton dynamo powered the worlds very first
electricity-lit house in Colchester, Essex, U.K. CGs India operations were established in 1937,
and since then the company has retained its leadership position in the management and
application of electrical energy. Crompton Greaves (CG) is part of the US$ 3 billion Avantha
group, a conglomerate with an impressive global footprint. With a turnover over RS. 4200
CRORES, the company is Indias largest private sector enterprise in the business of electrical
engineering. The company is organized into three business groups viz. Power Systems, Industrial
Systems and consumer products. Nearly, two-thirds of its turnover accrues from products lines in
which it enjoys a leaderships position. Presently, the company is offering wide range of products
such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC motors,
traction motors; alternators/ generators, railway signaling equipments, lighting products. In
addition to offering broad range of products, the company undertakes turnkey projects from
concept to commissioning.
Apart from this, CG exports its product to more than 60 countries worldwide, which
includes the emerging south-east Asian & Latin American markets. Thus, the company addresses
all the segments of the power industry from complex industrial solution to basic household
requirements. The fans and lighting businesses acquired Super brand status in January 2004. It
is a unique recognition amongst the countrys 134 selected brands by Super brands, UK CGs
business operation consist of 22 manufacturing divisions spread across in Gujarat, Maharashtra,
Goa, Madhya Pradesh and Karnataka, supported by well knitted marketing and service network
through 14 branches in various states under overall management of 04 regional sales offices
located in Delhi Kolkata Mumbai and Chennai. The company has a large customer base, which
includes State Electricity Boards, Government bodies and large companies in private and public
sectors. At Crompton Greaves there is always a passion for quality. The company has the unique
distinction of being the first one to receive an ISO 9000 certification for finance and
administration. The commitment has the unique distinction of being the first one to receive an
ISO 9000 certification for finance and administration. The commitment to responsible business
10

through quality, technology and productivity has helped the company to receive many
certifications in the ISO 9000/9001:2000/14001 series. The companys twenty three divisions/
regions have been accredited with ISO9001:2000 certification; Seven manufacturing units have
been accredited for ISOI 14001 and four units for OHSAS 18001. The Light sources division is
one of the few business units in India in lighting industry to receive dual certificate of ISO9000 :
2000 was well as ISO14001 and OHSAS 18001, Certification for Occupation Health and Safety
management system .The companys Fans, Motors, Automation and control products are
approved by the CSA , BASEEFA, and CE.
With several international acquisitions, Crompton greaves(CG) is fast emerging as a first
choice global supplier for high quality electrical equipment.CG has completed the acquisition of
the Belgium-based Pauwels on 13th May 2005.The Pauwels has transformer manufacturing
facilities in five countries (Belgium , Ireland , Canada, USA, and Indonesia) and well spread
distribution network across the globe, this makes a significant impetus to the companys
international presence. CG have also successfully acquired Hungarian based Ganz(GTV)
,engaged in the manufacture of EHV Transformers, Switchgear ,Gas Insulated Switchgear(GIS),
rotating Machines and contracting businesses and Transverticum Kft(TV) which was a
subsidiary of GTV, engaged in the supporting areas of design, erection, commissioning and
commercial activities on 17th October,2006.The acquisition of Microsol Holdings Limited
(MHL) and its associate companies ,based in Ireland with facilities in UK and USA, in May
2007 is yet another significant stride in CGs journey towards positioning itself as a Global T&D
solutions Provider. The acquisition of Societe nouvelle de maintenance de Transformatures
(Sonomatra) of France in June 2008, will enhance Crompton greaves capabilities in the services
segment of its transmission and distribution business. Crompton Greaves limited is truly Indias
industrial ambassador to the world.

2.2 HISTORY
11

Crompton Greaves goes back to 1878, when Col. R.E.B. Crompton founded R.E.B. Crompton &
Company. The company merged with F.A Parkinson in the year 1927 to form Crompton
Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was appointed as their concessionaire in
India. In 1937, CPL established, its wholly owned Indian subsidiary viz. Crompton Parkinson
Works Ltd., in Bombay, along with a sales organization, Greaves Cotton & Crompton Parkinson
Ltd., in collaboration with GCC. In the year 1947, with the dawn of Indian independence, the
company was taken over by Lala Karamchand Thapar, an eminent Indian industrialist. Crompton
Greaves is headquartered in a self-owned landmark building at Worli, Mumbai.
Today, Crompton Greaves (CG) is part of the US$ 3 bn Avantha Group, a conglomerate
with an impressive global footprint. Mr. Gautam Thapar, the third generation of Lala
Karamchand Thapar, is Chairman & CEO of Indias foremost diversified corporation, the
Avantha Group. Mr. Sudhir Mohan Trehan is the Managing Director of Crompton Greaves
Limited since May 2000. He was the recipient of the Outstanding Chief Executive of the Year
Award for 2000-2001, instituted by the Indian Institution of Industrial Engineering, for steps he
took towards successfully implementing his vision of making Crompton Greaves a world-class
manufacturing company. In addition to above, the Board of Directors includes the renowned
names of Dr. O. Goswami, Mr. S. Labroo, Dr. Valentin A H von Massow, Ms. M. Pudumjee, Mr.
S.P. Talwar and Mr. S.R. Bayman.

2.3 MAJOR ACQUISITIONS

12

Pauwels Acquisition
Crompton Greaves has completed the acquisition of the Belgium-based Pauwels on 13th
May 2005. The group has manufacturing facilities in Belgium, Ireland, Canada, USA and
Indonesia and well spread distribution network across the globe. The acquisition catapults the
company amongst top ten transformer manufacturers in the world. It has truly transformed into
an Indian MNC making a long-cherished dream finally come true. Apart from strengthening its
foothold in the Indian market, Crompton Greaves acquisition of the Pauwels Group and its
transformer manufacturing facilities in five countries is expected to provide a significant impetus
to the companys international presence.
The additional turnover of approximately Rs.1,380 crore of Pauwels Group for its last
financial year is expected to increase Crompton Greaves International business to around 50%
of its turnover, making the company a force to reckon with, in the international market.
Ganz Acquisition
Crompton Greaves have also successfully acquired Hungarian based Ganz (GTV),
engaged in the manufacture of EHV Transformers, Switchgear, Gas Insulated Switchgear (GIS),
Rotating Machines and Contracting businesses and Transverticum Kft (TV), engaged in the
supporting areas of design, erection, commissioning and commercial activities on 17 th
October,2006; TV being a subsidiary of GTV.
Microsol Acquisition
The acquisition of Microsol Holdings Limited (MHL) and its associate companies in May
2007 is yet another significant stride in CGs journey towards positioning itself as a Global T&D
Solutions Provider. MHL, based in Ireland with facilities in UK and USA, is engaged in the
business of providing sub-station and distribution automation for the utility industry including
MV and HV sub-stations, new sub-stations and retro-fitting solutions for existing sub-stations.
The acquisition reinforces CGs ability to design, build and service world-class substations, with
state-of-the-art automation & high-end engineering.
Sonomatra Acquisition
13

Crompton Greaves concluded an arrangement for the acquisition of Societe Nouvelle de

Maintenance de Transformateurs (Sonomatra) of France in June 2008. Sonomatra provides onsite maintenance and repair of power transformers and on-load tap changers, oil analysis, oil
treatment and retro filling. The approximate enterprise value of this acquisition is 1.30 mn. This
acquisition will enhance Crompton Greaves capabilities in the services segment of its
transmission and distribution business and is the companys fourth international acquisition.

2.2 PRODUCT PROFILE

14

Gas Insulated Switchgear

The GT01 type compact GIS includes the following equipment: puffer assisted self-blast circuit
breaker with spring drive, combined disconnector and earthing switch with motor drive, high
speed earthing switch with motor-charged spring drive, current and voltage transformers and
surge arresters. Sealing is ensured by a well-established O-ring system, which is 100% gastight
for both indoor and outdoor installations.

Rated voltage: 72.5145 kV

Rated lightning impulse withstand voltage: 325650 kV
Rated power frequency withstand voltage: 140275 kV
Rated frequency: 50 Hz
Rated current (max.): 3150 A (at 40 C ambient temp.)
Rated short time withstand current: 40 kA, 3 sec
Rated gas pressure (abs.): 0.8 MPa (CB), 0.6 MPa (GIS)
Applied standard: IEC

15

CHAPTER 3
REVIEW OF LITERATURE

16

3.1 REVIEW OF LITERATURE:

In a research titled 2014 Deep Research Report on Global and China Gas Insulated
Switchgear Industry published by ASD reports in April 2014 was a detailed report on Global &
China Gas insulated switchgear industry. The report firstly introduced Gas Insulated Switchgear
basic information included Gas Insulated Switchgear definition classification application
industry chain structure industry overview; international market analysis, China domestic market
analysis, Macroeconomic environment and economic situation analysis and influence, Gas
Insulated Switchgear industry policy and plan, Gas Insulated Switchgear product specification,
manufacturing process, product cost structure etc. then statistics Global and China key
manufacturers Gas Insulated Switchgear capacity production cost price profit production value
gross margin etc details information, at the same time, statistics these manufacturers Gas
Insulated Switchgear products customers application capacity market position company contact
information etc
Switchgears: Market Research Report a report published by the Market publishers database in
2013 has discussed the need, importance and upcoming requirements in power sector and
opportunities for various companies in the switch gear section.
Jan 9, 2014 : Bharat Book Bureau presents the new report, on ''Switchgear & Control Gear
Industry in India - 2013-2017" which includes profiles of the top five players - ABB Ltd, Alstom
T&D India, Bharat Heavy Electricals Ltd (BHEL), Crompton Greaves, Schneider Electric India with a brief overview about their service offerings, key financial ratios, expansion strategies.
This report on the switchgear and control gear industry in India covers intelligence on the
market size, growth, industry trends, industry attractiveness, and Porters analysis. The report
covers fiscal years 2013 through 2017.India is the fifth largest producer and consumer of
electricity in the world, but according to the 11th five year plan, the country was only able to
achieve 69% of the planned capacity of 78,700 MW. In order to overcome this demand and
supply deficit, the Indian government has gradually increased the planned capacity addition in
the years to come. The rising demand in the power capacity addition is marginally boosting the
demand for distribution machinery such as switchgears and control gears.
17

The switchgear and control gear industry in India is currently valued at INR 135bn (~USD
2billion) in FY 2013 and has been growing at ~15% for the last three years. Value Notes
estimates that the industry will be worth approximately INR 215bn (~USD 3.5billion) by FY
2017,

growing

at

diminished

CAGR

of

~10%.

- Low voltage switchgears, which account for more than 55% of the total market, has a higher
share of unorganized players and it is anticipated to increase in the coming years. The forward
integration of these unorganized players to medium and high voltage segments can lead to an
increase in the unorganized market share in these segments too, which is currently dominated by
five

or

six

players.

- Increased planned capacity addition in the power sector and improvement in technology along
with government directives to replace old redundant machinery is creating a replacement demand
in the switchgear segment
The report includes profiles of the top five players - ABB Ltd, Alstom T&D India, Bharat Heavy
Electricals Ltd (BHEL), Crompton Greaves, Schneider Electric India - with a brief overview
about their service offerings, key financial ratios, expansion strategies, etc.
Coating and barrier within medium voltage GIS (Gas insulated switchgear) a report
published in Electricity Distribution - Part 1, 2009. CIRED 2009. 20th International
Conference and Exhibition. The paper was an attempt to investigate cases with atmospheric
air and hybrid insulation, where solid insulation is used in addition to air. For solid
insulation, convenient polymeric materials are used. With hybrid insulation it is typically
two options: Coating or barriers. The properties of convenient polymeric materials are in
somewhat extent unknown and less examined for this type of application. Therefore an
investigation of the dielectrical behaviour of materials used in medium voltage switchgear
on a section with parallel conductors has been carried out. For the execution, experiments
were done with power frequency test and lightning impulse voltage. The experiments with
coating were done with Raychem heat-shrink tubes. Two types of plastic material where
used as barrier. Observations from experiments showed that hybrid insulation with coating
gives an increase in breakdown strength compared to air only. Coating should be preferred
based on the increase in dielectric strength of the system. However, if the barrier can be used

18

as a mechanical support for the conductors, the barrier could be preferred as the solid
insulation.
In a paper Tercon Contractors: The Effect of Exclusion Clauses on the Tendering Process
by Jassmine Girgis published in Canadian Business Law Journal, Vol. 49, p. 187, 2010 the
tendering process issues were discussed along with a dual contract model in Canada. This model
has governed the law of tendering in Canada for decades. In this, a tender call and the
submission of a bid create Contract A, in which the tender call constitutes the offer of a
contract in relation to the tender process. The submission of each bid constitutes an acceptance of
that offer, which creates a binding contract between the individual bidder and the issuer of the
tender call. Once a submission is accepted, the owner goes on to enter Contract B, the subject
matter of the bid or the construction contract, with the bidder.
Toshiyuki Uchii, Yoshikazu Hoshina, Hiromichi Kawano, KatsumiSuzuki1, Tetsuya
Nakamoto and

Mitsuru Toyoda in their paper Fundamental Research on SF6- Free Gas

Insulated Switchgear Adopting CO2 Gas and Its Mixtures It

was noted that self

last

technique utilizing arc energy effectively to enhance puffer pressure is a good solution for a CO2
applied gas circuit breaker (CO2GCB) because of it relatively small heat capacity and high arc
voltage. A72kV-31.5kA class CO2-GCB model was designed produced, and it showed
satisfactory performance form a job test duties. In addition, a lifecycle assessment (LCA) was
carried out to evaluate the environmental contribution by applying CO2 gas as an alternative
medium. An LCA calculation based on the developed CO2 GCB model reveals that it could
reduce the global warming impact compared to the latest SF6 gas circuit breaker in the
considered life cycle scenario. Furthermore, CO2 based environmentally benign gas mixtures,
such as CO2/O2, were also investigated. Some kinds of additional gases might increase arc
quenching and/or insulating performance compared to that of pure CO2 gas.

19

CHAPTER -4
RESEARCH METHODOLOGY

20

4.0 RESEARCH METHODOLOGY

4.1 OBJECTIVES
The project is a multidimensional attempt to study the following:
1) To study the concept, utility and importance of GIS (Gas Insulated Switchgear) as an
emerging technology in the field of Power Transmission and Distribution.
2) To study the Tender Bidding Process for getting project orders at Crompton Greaves Ltd,
GIS division.

21

4.2 LIMITATIONS
Following were the limitations faced during completion of the Project.
1) The actual data regarding the number of tender enquiries participated and gained could
not be obtained due to companys privacy policies.
2) The duration of the project was confined to only two months, which ultimately results to
a confined study.
3) The study restricted to the study of Tender Process followed at Crompton Greaves Ltd.
GIS division only.

22

CHAPTER 5
DATA ANALYSIS, DATA PRESENTATION
AND DATA INTERPRETATION

23

5.1 DATA ANALYSIS, DATA PRESENTATION AND DATA

INTERPRETATION
Origin of Electrical Energy:
Electrical power is generated at different generating stations. These generating stations are not
necessarily situated at the load center. During construction of generating station number of
factors are to be considered from economical point of view. These all factors may not be easily
available at load center; hence generating stations are not normally situated very nearer to load
center. Load center is the place where maximum power is consumed.
Factor to be considered for constructing a Generating Station:
During planning of construction of generating station the following factors to be considered for
economical generation of electrical power.
1) Easy availability of water for thermal power generating station.
2) Easy availability of land for construction of power station including its staff township.
3) For hydro power station there must be a dam on river. So proper place on the river must be
chosen in such a way that the construction of the dam can be done in most optimum way.
4) For thermal power station easy availability of fuel is one of the most important factors to be
considered.
5) Better communication for goods as well as employees of the power station also to be kept into
consideration.
6) For transporting very big spare parts of turbines, alternators etc, there must be wide road
ways, rain communication, and deep and wide river must pass away nearby the power station.
7) For nuclear power plant, it must be situated in such a distance from common location so that
there may be any effect from nuclear reaction the heath of common people.
Many other factors also to be considered, but there are beyond the scope of our discussion.
All the factors listed above are very difficult to be available at load center. The power station or
generating station must be situated where all the facilities are easily available. This place may
24

not be necessarily at the load center. The power generated at generating station then transmitted
to the load center by means of electrical power transmission system as we said earlier. A major
chunk of electricity generation is driven by heat engines. The heat is mostly supplied by
combustion of fossil fuels, nuclear fission, and other renewable energy sources.
Various Techniques for generation of Electrical energy:
Turbines:
The Turbines devices are mostly propelled by a fluid or gas that acts as an energy carrier.
Turbines can be propelled by wind or flowing water. Steam is one of the sources that can power
turbines, and for this medium, water is boiled with the help of heat from methods involving
nuclear fission, burning coal, natural gas, or petroleum. The main methods of generating
electricity have been discussed below.
Coal:
The first step consists of grounding the coal blocks evenly to fine fragments, and placing them in
a furnace that is attached to a water boiler. After undergoing heating and combustion, the water
boils, and the resultant steam is used to drive the turbines to generate electricity. An alternate
method is by using coal water slurry (CWS) fuel, which helps improve the efficiency of power
generation. Out of the total electricity generated on our planet, around 40% is derived by heating
coal.
Geothermal Energy:
The interior of the Earth stores vast reserves of heat, which is basically transferred from the
molten mantle to the crustal portions of our planet. Sources like hot water springs, geysers, and
hot water aquifers are exploited by geothermal power stations. With the help of mediums like
injecting cold water and other fluids, the steam generated from such sources is trapped and
further used to power turbines for electricity generation. More than 15% of the total electricity in
Iceland is derived from geothermal energy.
Biomass:
Animal dung, wood chips, parts of plants like branches and leaves, organic waste materials,
decaying animal mass, etc., are major examples of biomass. These materials can be burned or
made to undergo combustion in order to generate heat, which is further used to produce electrical
energy. Some of the sources are also fermented to generate biogas, which can be readily burned
25

and converted to electricity with the help of biogas power plants. Biomass is a very promising
and important source of renewable energy, and its use for electricity generating purposes is
steadily increasing.
Wind Turbines:
Using wind energy is another way of producing electricity. Windmills are devices that harness
wind energy, and act like turbines in order to produce electricity. The rotating blades are
connected to generators via cables, which transfer kinetic energy to the generators. The wind
turbine having the largest capacity of producing electricity is the Vesta V-164. Its capacity has
been rated at 8 MW.
Hydroelectric Plants:
Water flowing at a great force can also drive a turbine to generate electricity. Dams are built
between the course of a river not just for storage of water, but also for the generation of
electricity through turbines. These turbines are set up at the reservoir power station, and water
falling from a great height is used for their rotation action, which in turn starts the generators,
ultimately producing electrical energy. More than 2000 hydroelectric power plants are present in
the US, and they generate about 7% of the total electricity produced in the region.
Tidal Energy:
Rapid advancement is also seen in the generation of electricity using tidal power. One of the
most important inexhaustible energy sources - tidal plants, utilize the energy carried by waves
that crash onto coastal areas with an enormous force. Turbines are built under the breaker zone
inside cylindrical units, on which the waves hit with their maximum force. The high momentum
of tidal waves helps in the rotation of turbines, and subsequently generates electrical energy.
Tidal barrages and tidal stream generators are two main techniques involved in electricity
production using the power of waves.
Photovoltaic Panels:
The Photovoltaic panels convert sunlight directly into electricity, unlike solar heat concentrators.
Initially, they were considered to be best suited to rural areas, where there is no electricity grid or
a proper infrastructure. But, with an increasing awareness about their environmental advantages,
these panels are being used on a large scale around the world. Many experiments are being
conducted to tap solar energy. Germany is the largest producer of photovoltaic panels, while
countries harnessing the most advanced technology are China and Japan. The materials used for
26

making solar chips are mono crystalline and polycrystalline silicon, cadmium telluride, copper
sulfide, etc. The panels are enclosed in modules, which are then connected to respective devices
with the help of copper cables. Photovoltaic cells are used for generating electricity in buildings,
transportation (cars, trucks, bicycles, etc.), spacecraft and space stations, cell phone chargers, etc.
Nuclear Fission:
When the nucleus of an atom splits, a chemical reaction occurs, which is called nuclear fission.
This process takes place in a nuclear reactor. The most used mineral in the process of nuclear
power generation is uranium. It is placed in the reactor's core, and random neutrons are released
in the core. These neutrons collide with the nucleus of a uranium atom, resulting in fission, thus
creating a chain reaction. The consequence of this reaction is the production of a large amount of
heat in the core. But there are coolants to tackle the heat which is absorbed, and is further
transported to a steam boiler through a tube. After this, the heat from the coolant passes through
the tube walls, which boils the water obtained from a nearby natural source. The heated H2O
gets transformed into steam, which propels the turbine, leading to the generation of electricity. A
major problem with this method is the production of nuclear waste, which is extremely harmful
for the environment.
Fuel Cells:
The devices that generate electricity with the help of chemical energy derived from certain fuels
are known as fuel cells. In these devices, a chemical reaction takes place that involves the fuel,
an oxidizing agent, and oxygen. They require a continuous supply of fuel and the required
chemicals, in contrast to devices called batteries (used in cell phones, radios, laptop computers,
etc.), which require a limited supply of chemicals, and can be charged multiple times. Various
hydrocarbons, hydrogen, and methanol are some examples of the fuels used in this method, and
of these options, hydrogen is the most preferred element to be used as a fuel. The reliability of
these devices is more than that of other methods like coal-powered electricity generation plants,
wind turbines, and photovoltaic panel-generated electricity. Being 99% efficient, they are widely
used in numerous commercial applications. This technology can be said to be one of the most
promising and emerging ones that might surpass other methods in the near future. Research is
still on, regarding the manufacturing of such devices in accordance with environmental safety
and conservation.
27

Besides these techniques, there are other methods for generating electricity (for example,
batteries, static electricity, piezoelectric crystals, etc.), for which a lot of experiments are being
conducted. These techniques are used on a relatively small scale as compared to the abovedescribed methods. Innovations in this field may lead to minimizing the use of non-renewable
energy sources for electricity generation.
The power generated at generating station is in low voltage level as low voltage power
generation has some economical values. Low voltage power generation is more economical than
high voltage power generation. At low voltage level, bot weight and wide of insulation is less in
the alternator, this directly reduces the cost and size of alternator. But this low voltage level
power cannot be transmitted directly to the consumer end as because this low voltage power
transmission is not at all economical. Hence although low voltage power generation is
economical but low voltage electrical power transmission is not economical. Electrical power is
directly proportional to the product of electrical electric current and voltage of system. So for
transmitting certain electrical power from one place to another, if the voltage of the power is
increased then associated electric current of this power is reduced. Reduced electric current
means less I2R loss in the system, less cross sectional area of the conductor means less capital
involvement and decreased electric current causes improvement in voltage regulation of power
transmission system and improved voltage regulation indicates quality power. Because of these
three reasons electrical power mainly transmitted at high voltage level.
Again at distribution end for efficient distribution of the transmitted power, it is stepped down to
its desired low voltage level.
Transmission of Electrical Energy:
Fundamentally there are two systems by which electrical energy can be transmitted.
(1) High voltage DC electrical transmission system.
(2) High voltage AC electrical transmission system.
There are some advantages in using DC transmission system:

28

i) Only two conductors are required for DC transmission system. It is further possible to use only
one conductor of DC transmission system if earth is utilized as return path of the system.
ii) The potential stress on the insulator of DC transmission system is about 70% of same voltage
AC transmission system. Hence less insulation cost is involved in DC transmission system.
iii) Inductance, capacitance, phase displacement and surge problems can be eliminated in DC
system.
Even having these advantages in DC system, generally electrical energy is transmitted by three
(3) phase AC transmission system.
i) The alternating voltages can easily be stepped up & down, which is not possible in DC
transmission system.
ii) Maintenance of AC substation is quite easy and economical compared to DC site.
iii) The transforming in AC electrical substation is much easier than motor-generator sets in DC
system.
But AC transmission systems also have some disadvantages like,
i) The volume of conductor used in AC system is much higher than that of DC.
ii) The reactance of the line, affects the voltage regulation of electrical power transmission
system.
iii) Problems of skin effects and proximity effects only found in AC system.
iv) AC transmission system is more likely to be affected by corona effect than DC system.
v) Construction of AC electrical power transmission network is more completed than DC system.
vi) Proper synchronizing is required before inter connecting two or more transmission lines
together; synchronizing can totally be omitted in DC transmission system.
Transmission lines are sets of wires, called conductors that carry electric power from generating
plants to the substations that deliver power to customers. At a generating plant, electric power is
stepped up to several thousand volts by a transformer and delivered to the transmission line. At
numerous substations on the transmission system, transformers step down the power to a lower
voltage and deliver it to distribution lines. Distribution lines carry power to farms, homes and
businesses. The type of transmission structures used for any project is determined by the
characteristics of the transmission lines route, including terrain and existing infrastructure.
Typical transmission line structures
29

 High-voltage (230-kV, 345-kV, 400-kV (DC), 500-kV (DC) :

Currently in Minnesota, the high-voltage system is generally comprised of 230-kiloVolt and 345kV systems. There are also two direct current (DC) lines, one of 400-kV and one at 500-kV.
Structures are generally steel lattice towers, wooden H-Frames or single-pole steel. (photos
below of each).
Lower voltage transmission systems:
161-kV and 115-kV systems are responsible for transmitting power from the larger transmission
system and generation facility throughout the entire state. Some large industrial customers may
be served directly from 161-kV and 115-kV systems.
161-kV and 115-kV structures are generally single pole structures between 70 and 95 feet tall.
69-kV through 23-kV systems transmit power to distribution substations. These also provide
connection to some of the more remote and sparsely populated areas in greater Minnesota. Many
smaller and rural industrial customers receive power directly from these systems.
Structures are generally single pole towers, constructed of either wood or steel and range from
50-70 feet tall.

Transmission Nominal
Voltage: +/- 400 kV
HVDC
Type: Tower
Typical Tower Height:
145-180 feet
Typical Right-of-Way
Width:
160-180 feet

Transmission Nominal
Voltage: 500 kV
Type: Tower
Typical Tower Height:
90-150 feet
Typical Right-of-Way
Width:
160-200 feet

30

Transmission Nominal
Voltage: 345 kV
Type: Double Ckt Pole
Typical Tower Height:
115-150 feet
Typical Right-of-Way
Width:
140-160 feet

Transmission
Nominal Voltage: 230
kV
Type: H-Frame
Typical Tower
Height:
60-90 feet
Typical Right-of-Way
Width:

100-160 feet

Transmission Nominal
Voltage: 161 kV
Type: Single Pole
Typical Tower Height:
70-95 feet
Typical Right-of-Way
Width:
100-150 feet

Transmission Nominal
Voltage: 115 kV
Type: Single Pole
Typical Tower Height:
55-80 feet
Typical Right-of-Way
Width:
90-130 feet

31

Transmission Nominal
Voltage: 69 kV
Type: Single Pole
Typical Tower Height:
50-70 feet
Typical Right-of-Way
Width:
70-100 feet

Power Source
Generation and transmission cooperatives (G&Ts), like Great River Energy, operate power generating
facilities. At a steam generating plant, the fuel (coal, nuclear or biomass) heats water to make steam
and drive a turbine. In a combustion turbine, the fuel (gas or oil) is burned and the hot gas drives a
turbine. Wind hydro and solar are other forms of energy producers.

32

The above Single Line Diagram represents a basic flow of Electrical Power from Generating stations to
the final consumer end. At the Generating station the electrical power is generated. Mostly there are 3-4
units of Generators that produce electricity upto 11kV. This generated electricity needs to be
transmitted to longer distances upto the final consumer located hundreds of kilometers away. But while
Transmitting this power, there occur some amount of losses in the Transmission. To reduce the amount
of losses incurred while transmission of this power, the Voltage is scaled up from 11kV to 220 kV (in
the above given example) before its transmission at the Step Up Transformer Substation located at the
Generating End. The power is then transmitted to various regions after stepping up the Voltage. Thus
the proportion of Losses in these High Voltage transmission lines is lower.
Now, at the Receiving end firstly there is a Step Down transformer that Scales down the Voltage from
220 kV to 33kV (in above given example) in order to divide the feeder to feed various regions.
Similarly, the second distribution substation is the one where the voltage is scaled down further in
order to make it available for the end customer. The end consumer may be the domestic users, the
Industrial zones, various institutions.

High-voltage
transmission lines

33

Transformers at the generating plant increase the voltage up to a transmission voltage (69 kV, 115 kV,
230 kV, 500 kV, 765 kV), so it can travel long distances over high-voltage transmission lines. G&Ts
operate these lines, which carry the electric energy from the generating stations to the places where
electricity is used.

TRANSMISSION SUBSTATION
Transformers reduce the electric energy down
to a lower voltage (69 kV, 34 kV) making it
suitable for high-volume delivery over short
distances.

LOCAL DISTRIBUTION SUBSTATION

Transformers reduce the electric energy down
to a lower voltage (69 kV, 34 kV) making it
suitable for high-volume delivery over short
distances.

34

Large industrial user

Distribution lines
Most industries need 2,400 to 4,160 volts
Lines belonging to local electric co-ops carry
to run heavy machinery. They usually electricity to transformers that reduce power levels to
have their own substation at the facility.
120/240 or 120/208 volts for use in schools, farms,
small businesses and homes.

35

Comparison of GIS (Gas Insulated Substation) with AIS (Air Insulated

Substation)
a) Large dimensions of AIS due to statutory clearness and poor dielectric strength are
not seen in GIS. The Space required for GIS is almost One-fourth or even lesser in
comparison with GIS.
b) With increase in Kilo Voltage rating the space required for AIS goes on increasing
and that of GIS comparatively decreases.
c) Due to the large space required for AIS the Power Sector utilities have to find larger
lands for installation of AIS, but in case of GIS due to low space requirement the
power sector utilities find it easier to plan and install GIS.
d) The factor of Seismic instability plays important role in maintaining the stability of
the substation. Better results are seen in case of GIS.
e) The GIS technology is an advanced approach towards the transmission and
Distribution of Electric Power.
f) Safety factor is higher in case of GIS as there are No open or bare conductors.
g) The only limitation in case of GIS as on date is the Initial Cost of installation. But
taking into consideration the space that is being saved, the cost gets compensated.

Air Insulated Substation

36

Gas Insulated Substation

Sr.

Description

Air Insulated

No.
1.
2.
3.
4.
5.
6.
7.
8.

Space clearances needed

Increase in Voltage Rating results
Seismic Instability factor
Insulation Capacity
Safety Factors
Overall Installation Cost
Maintenance
Damage in case of internal fault

Substation
Large Space
Increased Space
Weak
Good
Low
Low
Easy
Low

Table No: - 1.0

Gas Insulated
Substation
Small Space
Reduced Space
Good
Best
High
High
Difficult
High

Comparison between AIS and GIS

1) Increasing Demand of GIS.

Due to the above advantages it is seen that in most of the aspects the GIS technology is
superior to the AIS technology.
2) Major Players of GIS in India
a) Crompton Greaves Ltd.
37

b) Siemens Ltd.
c) ABB Ltd.
d) Alstom Ltd.
e) GE Ltd.
3) Electrical utilities turning towards GIS.
Now-a-days many of the Electrical Utilities i.e. different Electricity boards, Transmission
companies, Distribution companies and various large manufacturing plants are turning
towards GIS and looking towards it as an open option. Having many advantages GIS is
being looked as a strong alternative. Following are some of the major players in India that
are:
a) Haryana Vidyut Prasaran Nigam Limited (HVPNL)
b) Uttar Pradesh Power Transmission Company Limited (UPPTCL)
c) Karnataka Power Transmission Company Limited (KPTCL)
d) Himachal Pradesh State Electricity Board (HPSEB)
e) Gujrat Electricity Transmission Company Limited (GETCO)
f) Assam Electricity Generation Company Limited (AEGCL)
g) Tamil Nadu Electricity Board (TNEB), etc.

5.2 Tendering
Tendering:
38

Definition: Tendering is the process of making an offer, bid or proposal, or expressing interest in
response to an invitation or request for tender.
The tendering process is generally utilized for procurement of contracts involving
substantial amount of money. The tender process is used by various organizations like
1) Government departments, offices and agencies
2) Private Sector companies and businesses
3) Overseas markets and different organizations.
Organizations will seek other businesses to respond to a particular need, such as the supply of
goods and services, and will select an offer or tender that meets their need and provides the best
value for money.
Project initiation at the Clients end:
Whenever a company or any private entity (Client or End Customer or Owner) wants to develop
a project or a substation, preferably most of the bodies do appoint a consultant or a mediator
body which acts as the face of the Client until the Project gets completed and then the consultant
gets a Completion Certificate from the Client.
Sanction of Project from Government Authorities:
Whenever a project gets sanctioned from the respective Central or State government authority,
the organization initiating tender invites different parties for bidding the Tender. Bidding of the
tender simply means to quote the best price the party could give i.e. the quest is for the most
suitable and most appropriate proposal from different parties in order to get the best possible
deal.

Preparation of Technical and Commercial Documents:

39

As per the Technical and Commercial requirements of the Client or End Customer the consultant
prepares the Tender documents. Each and every clause of the Tender document distinctly
signifies the requirement of the Customer. These documents include following types of
documents:
1) Bid Qualification Requirements
2) Instructions to Bidder (INB)
3) Commercial Documents
4) Technical Specifications
5) Various Drawings and Layouts
6) Annexures and Schedules
7) Various Blank Formats
8) Other Contract Documents
Invitation for Tender Bidding:
Once the documents get prepared according to the requirements of the Customer, Invitation for
Bidding of tender are requested by displaying advertisement in Regional and National
Newspapers, on Internet Website, and various other media possible.
Purchase of Documents:
Interested parties i.e. various Engineering Procurement and Construction (EPC) purchase the
Tender documents. The procedure is very simple just the parties have to fill up some simple
forms and have to make a Demand Draft (most preferably) in favour of the Customer or
Consultant. All the documents are supplied to the interested party.
EPC Main Contractor and Sub Contractors:
Sometimes the EPC, if possible and also has the potential to execute the complete project on
Turnkey basis that means all the different kinds of works to be done at the project will be done
by the EPC only. There are mainly three four different kinds of works in a project
40

a) Civil Works: These are the works that are related to laying up of civil foundation for
mounting of different Electrical and Mechanical structures or buildings on site.
b) Mechanical Works: These works include all the solid structures to be installed or erected
at site such as various steel structures or any kind of supports required.
c) Electrical Works: If the project is a substation or any electrical installation it comes under
electrical work. Even if it is not an electrical project, smaller illumination installations are
to be done at site.
d) Automation Works: For controlling of any type of project some or the other type of
automation is required. Installation of some basic software systems is needed. Even the
security systems are automated now-a-days.
This was just a glimpse of some of the sub-projects that form a part of the whole larger project.
Therefore, if the EPC qualifies the Qualifying Requirements required for the project, and has the
capacity, can go for a Turnkey solution. But if not, the EPC acts as a main Contractor himself
and appoints smaller vendors who satisfy the qualification criteria, can act as Sub-Contractors for
EPC. Thus, the main contractor and the Sub-contractor together execute the project by either a
simple contract or a joint venture. The profit share is also distributed accordingly.

Role of Crompton Greaves Ltd. Nashik:

Post Purchase of Tender Documents:
41

a) Once the documents are purchased and the Sub contractors are decided (there can more
than one sub-contractor shortlisted for the same work to be done and the best quote is
forwarded to the customer at the time of bidding). Then the documents are forwarded to
various probable bidders who can supply the product and are even capable of executing
the project. Now-a-days the documents are sent through E-mails. All the relevant
documents that the main contractor think could be useful are sent to the sub-contractor.
These documents include Qualification requirements, Technical and Commercial
specification.
b) At the bidders End i.e. in our case Crompton Greaves Ltd. Printing of all the relevant
documents is taken. Firstly, and most importantly the Bid Qualification Requirements
shortly referred as QR are studied. It consists of various clauses viz. the Commercial
Qualification, the Technical qualification, qualification on the basis of Experience,
Qualification on the basis of Annual Turnover and some general qualification criteria.
There are two possibilities either the bidder qualifies the criteria or do not satisfy. If bidder
satisfies, then he proceeds with the enquiry for preparation of Technical offer. If the bidder does
not satisfy the qualification criteria then the bidder try to discuss the clauses where he does not
comply or the bidder tries out to find some mid-way by which he qualifies. Sometimes the bidder
even shakes hands with a competitor by entering into an agreement so as to qualify the criteria.
But such cases are rarely seen. Or sometimes the bidder enters into a JV with a player who
satisfies the criteria. Even after doing all the efforts if the bidder is unable to fulfill the
qualification criteria, the bidder simply Regrets the offer and gets out of it. But this is also not
often seen. Mostly the customer after observing that most of the bidders are uncomfortable with
a particular clause in the Qualification Requirements, the Customer revises the qualification
criteria documents and removes those clauses which obstructed most of the Bidders.
The reason for doing the revision in the Qualification Criteria itself is that if most of the
strong bidders are not even able to participate because of a particular clause, then there will not
be a fair competition between the bidders and most importantly, the customer would have less
number of choices to make.
42

c) Once the issue of QR is clarified the Technical documents are taken into consideration.
Like the QR, the technical documents are also taken print and studied. Now, in the
Technical specification sometimes there are clauses or points that a bidder is unable to
satisfy. These are the points which do not have much of impact in the final product as a
whole but do have an impact Cost wise on the bidder. Or even sometimes the design of
the bidder has some limitations that are unable to cope up with the given requirements. In
such cases, all these points are collected and are filled into a sheet named as the
Deviations and Clarifications Sheet. This sheet, is sometimes named with a specific
term say Annexure at CGL, Nashik, GIS Division is prepared and is sent to the EPC.
As these are minor deviations the customer mostly discusses the difficulties of the supplier on
Telephonic conversations and tries to find out the solution on the same. If the points i.e. the
clarifications of the bidder are acceptable to the customer, he gives a green signal and if not a
red. Simply, the bidder even after satisfying the qualification criteria has to regret if he has some
major deviations that are unacceptable to customer. But if the contractor is fine with the
deviations, the bidder proceeds with the Technical offer.
Pre Bid Queries:
d) If the Deviations and Clarifications Sheet contains some major points, the bidder also has
a provision for direct discussion of the deviation points with the customer during the PreBid Meeting. During this meeting the sub contractors bring out their points of concern to
find some solution on these points. The Customer finds some solution to the problem or
even may be stubborn on their decision. Thus, almost all the non standard and deviation
points are clarified after this meeting.
e) Once it is confirmed that there are no or some minor deviations in the Technical
specifications, the bidder proceeds with the preparation of the Technical offer. The
technical offer simply consists of Single Line Diagram (SLD), Layout Drawings, Bill of
Material, Technical Datasheets and any other Technical Data that is asked for. The
technical offer is sent to the EPC to cross verify the Layout and drawings with other subcontractors like the civil, mechanical, etc. Finally the suitable technical offer is finalized
43

to be sent to the customer at the time of bid. Once the confirmation on the Technical offer
is obtained, the bidder proceeds or through discussions various queries of the contractor.
The bidder sends the Technical offer and waits for reply of the main contractor.
f) The main contractor studies the technical offer given by the bidder and reply back to him.
If the technical offer is as required by the customer then the bidder proceeds with the
commercial documents. The bidder starts to prepare the commercial offer to be submitted
to the customer. But, if there are still queries in the technical offer that are not yet clear or
they could not be handled then the bidder mostly waits for some alternative or submits
the offer with deviations. But in such cases, there is a huge risk involved to the bidder. If
his offer gets selected and his quote is also accordingly, the customer could file a suite of
non compliance against the bidder. Thus, most of the bidders do not take chances and do
not bid for such enquiries.
g) The Commercial offer consists of the price that is to be quoted, in which the payment
terms (fixed or variable) are mentioned. Alongwith the Price sheet, the Inclusions and
Exclusions sheet is also attached. This clarifies all the scope of the bidder so that he
makes his side safe from any claims in future. The Prices of the offer are not disclosed
outside and the documents are well protected. The prices after getting approval from the
Authorities and the Finance department are ready to submit. But the commercial offer is
held back till the last date so that there are no or less chances of Prices getting leaked.
This also reduces the chances of malpractices that mostly occur in this kind of Processes.

Once the Commercial offer is submitted from the Bidders side, the only thing that the bidder can
do is wait and watch till the Tender opening date comes. The waiting is not a small span, but a
span of months together. At the Customer end, tenders are then evaluated. This process involves
an assessment of tenders against the criteria referred to in the Request for Tender or invitation
documents, as well as an analysis of the strengths and weaknesses of the submitted tenders. Each
tender will initially be assessed to determine if it complies with all requirements of the tender
document, i.e.
44

Complies with any conditions of participation.

Tender has been lodged on time.

Documents are signed as required.

Tender meets all mandatory requirements.

If the tender does not meet this initial check, it is deemed as non-compliant and will be excluded
from further consideration. Should your tender pass the initial compliance check then it will
proceed to be considered against the tender selection criteria. The selection criteria that your
tender will be evaluated on may include:

The technical merit of the proposal,

The capability of the business to fulfil the requirement including: technical and
management competence, financial viability and relevant experience,

The relevant skills, experience and availability of key personnel,

Quality assurance requirements, and

The risks or constraints associated with the offer.

h) On the Bid opening date the declaration of L1, L2 and L3 which means the Lowest three
bid for the offer, L1 being the lowest. Also, H1, H2 and H3 are also declared. These are
the Highest three bid prices received for the offer. The client can choose the most
appropriate bidder from all these bidders. It is not mandatory on the client to
compulsorily go forward with the lowest bidder. The bidder is free to make his own
decisions. If the L1 bidder is not sure that he could complete the stipulated order or there
are some disputes, in such a case, the client can proceed with L2 or even L3. The process
of accepting a tender proposal is called as Award of Tender. Thus after this the contract
signing takes place. At this time, all the terms and conditions are included in the contract
so that everything remains transparent.

i) The next and final stage is the Project Execution. Once the Project is awarded to the
bidder and as per the Payment Terms, the initial amounts are transferred, the execution
work starts. According to the time line mentioned by the bidder, the execution works
45

proceeds and should get completed before the decided time. Otherwise the bidder has to
face certain penalties as per mentioned in the tender documents. Once the project
execution gets completed the Client has to issue a Project Completion Certificate to the
bidder. This certificate also reflects that all the work from the side of bidder has been
completed and there is no remaining work pending on the site. It also implies that the
client should now make all the remaining payments to the bidder.

Flowchart showing the whole Tendering Process:

46

47

48

49

50

51

52

53

Terms and Definitions

1) Tender
The word Tender comes from the Latin word tendre which means to offer. Historically,
in past ages the merchant ships arrived at a port of call, they would post a notice describing the
goods they wished to buy or sell. This notice was delivered ahead of the ship by a tendera
small boatand hence the process became known as tendering. Purchase/Procurement is the
acquisition of goods or services. It is favorable that the goods/services are appropriate and that
they are procured at the best possible cost to meet the needs of the purchaser in terms of quality
and quantity, time, and location. Corporations and public bodies often define processes intended
to promote fair and open competition for their business while minimizing exposure to fraud and
collusion.
The guiding philosophy of tendering process is similar all over the world not withstanding
differences in methodology and nomenclature. This write up is essentially meant to explain the
tendering process followed in India. Keeping in mind the extensive level of computerization in
certain government departments, armed forces, and business houses the records, registers etc.
may be in softcopy format etc.
2) Bidder
The bidder is the body that wishes to respond to the invitation of the Tender, i.e. to quote
the best price in order to win the Tender. The bidder could be the EPC or it could be the
Contractor or it could be the manufacturer or the sub-contractor that bids to the main contractor.
3) Client/Customer
Anyone who derives direct or indirect benefit from a product is a customer. This includes
people who request, pay for, select, specify, or use a product, as well as those who receive the
products outputs. In our case the Public or private entity that would use the Project (Substation)
for Distribution and Transmission of Electricity. Customers who initiate or fund a project supply
the high-level product concept and the projects business rationale. These business requirements
54

describe the value that the users, developing organization, or other stakeholders want to receive
from the system. Business requirements establish a guiding framework for the rest of the project;
everything else thats specified as a requirement should help satisfy the business requirements.
4) Consultant
A person who consults with others or an expert who is called on for professional or
technical advice or opinions. To consult means to seek advice from," as in seek advice from an
accountant or an attorney. Thus, it would seem that clients are also consultants in that they are
the ones who are usually seen as seeking advice. We all know that there might or might not be a
connection between our training and our knowledge and skills. From this, it follows that a
consultant, if he or she is indeed an expert, must be an effective learner, that is, capable of
acquiring knowledge and skill from experience, whether or not that experience involves training.
Consultants learn about their clients from observing them and it is what they learn about their
clients that they eventually share with their clients. Their job is to bridge the gap between the
Customers requirements and the description that he gives regarding those requirements and the
service provider (in our case, the product manufacturer or the end bidder) to whom the
requirements are to be sent.

5) EPC
The Engineering Procurement and Construction (EPC) is a company that deals with
Engineering Projects, their construction, monitoring, and execution. It is a body that either
executes the whole project on turnkey basis or itself acts as a main contractor and appoints
various smaller Sub-contractors for getting the project completed.
Under an EPC contract, the contractor designs the installation, procures the necessary materials
and builds the project, either directly or by of the work. In some cases, the contractor carries the
project risk for schedule as well as budget in return for a fixed price, called lump sum LSTK
Lump sum turnkey depending on the agreed scope of work. When the scope is restricted to
engineering and procurement, this is referred to as an EP, E and P or E+P contract. This is often
done in situations where the construction risk is too great for the contractor or when the owner
does the construction.
55

6) Main Contractor The main contractor is mostly the EPC that regulates the whole project and monitors the
project execution. Sometimes the Main contractor may be different from the EPC. The main
contractors appoint various smaller vendors who work for him as Sub-contractors. It is
adjustment made with the help of a simple contract between the two bodies.
7) Sub Contractor
A business that provides goods or services to a main contractor (sometimes known as the
primary or head contractor). For the sub-contractor, the Main contractor is the customer and
gives requirement for the stipulated project. The two bodies can work together only if they both
satisfy the Qualifying Requirements.

8) Contract
A contract is an agreement having a lawful object entered into voluntarily by two or more
parties, each of whom intends to create one or more legal obligations between them. In our case,
the contract signing takes place between two entities viz. EPC and Customer, Customer and
Consultant, EPC and Sub-contractors or Even two sub contractors.
9) Letter of Acceptance
A letter that creates an immediate binding contractual relationship between the Customer and
the successful bidder prior to entering into a formal contract. The Letter declares that the customer
accepts whatever the bidder is bidding and further amendments are clarified in the contract to be
signed.

10) Invitation To Tender (ITT) Oral or written invitation to prospective suppliers to submit a bid on materials or services.
ITT is only a solicitation, and does not qualify as an offer because the party making it does not
wish to enter into a binding agreement without further negotiations. Also called request for bids
(RFB).Typically it includes a background, rules of tender, contract specification, technical
56

specifications,

questions

or

information

required

and

draft

contact.

11) Bid Qualification Requirements

Minimum set of requirements initiated by the Customer for their bidder to satisfy if he
wishes to bid the Tender. The bid qualification requirements consists of different clauses like the
Commercial conditions, conditions related to work experience of the bidder, different kinds of
Standards that the bidder follows and Financial capability of the bidder.

12) Commercial Terms

Minimum set of Commercial requirements initiated by the Customer for their bidder to
satisfy if he wishes to bid the Tender. The commercial terms consists of the payment terms (fixed
or variable), minimum annual turnover of the bidder, letter of completion of last project executed
from the earlier customer, defect liability period, bank performance guarantee, contract
performance guarantee and the percentage of amount to be paid as the earnest money deposit.
13) Technical Specification
Minimum set of Technical requirements initiated by the Customer for their bidder to
satisfy if he wishes to bid the Tender. The technical specifications consist of (in our case), the
Current rating, Voltage rating, other technical parameters, Single line diagram, other layout
drawings, detailed description of how the different components to be manufactured.
14) Payment Terms
The Payment Terms are the conditions for payment of money from the customer to the
bidder during different stages of project execution. The payment terms are mentioned in the
commercial terms. These could be Fixed or Variable. Fixed payment terms indicate for example
30 70 %. This reflects that 30 % of payment on a particular stage of project execution and 70 %
on either completion or some further stage of execution. Sometimes the payment terms could be
variable i.e. according to the wish of the customer. It could be more risky to adapt variable
payment terms.

57

15) Bid Security Deposit

Bid security deposit may be required for Sealed Bids in certain instances. It is required as a
guarantee that the successful bidder will enter into a contract if it is awarded to them. The bid
security deposit may be in the form of a certified check or a bid bond executed by a surety
company.
16) Defect Liability Period
Defect liability period is a period whereby the contractor must repair any defect identified
by the supervisory officer after a particular work was duly completed. All expenses to repair the
defects shall be borne by the contractor and no additional costs charged to the Customer. This
period is also mentioned in the commercial specifications.
17) Performance Bank Guarantee
Performance Bank Guarantee is the guarantee taken by the Bank or financial institution
on for the bidder. It is a surety bond issued by an insurance company or a bank to guarantee
satisfactory completion of a project by a contractor.
18) Contract Bank Guarantee
A business agreement between a client and a contractor for the contractor to perform all
of their obligations under the contract. A performance guarantee might also include a clause to
protect the client against losses incurred in case the contractor fails to perform and enforcement
action is required or an alternative contractor needs to be engaged

19) Pre Bid Queries

A set of queries and doubts that a bidder wishes to clarify from the Customer in order to
provide with an exact solution in optimum cost. These queries are mostly clarified in a meeting
or a teleconferencing with the main contractor. These queries sometimes decide whether the
bidder could bid the required offer or not.

58

20) Bid Opening Date

It is the date when the offers quoted by various bidders are opened and the declaration of
L1, L2 and L3 is done. It mostly decides the award of tender i.e. which party wins the tender.
21) General Conditions of Contract
As the name suggests it consists of the general requirements to be followed by the bidder
while bidding the tender. It mostly consists of the documents to be attached alongwith the
technical offer and also alongwith the commercial offer, etc.
22) Special Conditions of Contract
Similar to the General requirements, the special conditions if any are mentioned in this
section. It mostly consists of any special tools and tackles required, or any special training
required for the customers officials, or even if any non standard requirement is mentioned in this
section.
23) Deviations and Clarifications
The deviations are the terms on which the bidder is somewhat incapable for
manufacturing as per the required technical specifications. The deviations could also be
commercial. It includes various commercial points where the bidder is not comfortable. The
Clarifications are those points that the bidder wants to clarify earlier itself so that there should
not be any kind of disputes. The Clarifications and various assumptions are submitted to the
Customer earlier through various Annexure and Schedules.

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CHAPTER 6
OBSERVATION AND FINDINGS

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6.0 OBSERVATIONS AND FINDINGS:

It is observed that for a product like Gas Insulated Switchgear, tender bidding is one
of the simplest, quickest and easiest methods. In all aspects, for the customer as well
as for the bidder or manufacturer the process is of complete importance.

Mainly, a crystal clear and justified result is obtained and the customer gets a justified
bidder who not only is offering the lowest price but also is technically and
commercially meeting all the conditions.

Taking into consideration the Cost and high utility factor of the GIS as a product, no
risks could be taken by compromising on certain aspects.

Due to this process mal practices have also reduced and every step in the process goes
on smoothly.

The process followed is at Crompton Greaves Ltd. for bidding of the tenders is almost
same for all the enquiries being received at the bidder end.

The process followed at Crompton Greaves Ltd. Nashik, is studied and some
important finding that came to be known are that tender bidding is not a one-time
process but it is perpetual process.

The bidder needs to correspond and follow up with the client. This is necessary in
order to be in continuous updations of changes occurring in the documents.

Even if the main contractor and the sub contractor belong to the same organization
the steps to be followed are nearly same.

If the Qualification requirements are not met by the bidder, the bidder may discuss it
with the EPC and still if the main contractor is unable to get a solution about it, the
bidder regrets the offer.

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CHAPTER 7
RECOMMENDATIONS

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7.1 RECOMMENDATIONS:
After studying the whole tender bidding process, some of the things that primarily come
into picture are as follows:
1) The Tender bidding is a very important process and at the same time it is very
simple to understand. The process is very much crystal clear and free from
malpractices upto a great extent.
2) The process followed is at Crompton Greaves Ltd. for bidding of the tenders is
almost same for all the enquiries being received at the bidder end. Thus, for more
simplification, special formats if designed which would act as a checklist would
give updates regarding all the processes being followed and steps that are
remaining.
3) Moreover, for decreasing the time that is being required for bidding of tender can
be reduced by using automated system software that would prepare all the
drawings of the Technical Offer so that the time that would be required is the time
for the Commercial Offer as it requires human interferences.
These are some of the things that primarily come to observation seeing the overall
process of Tender bidding that if implemented would definitely benefit the organization.

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CHAPTER 8
CONCLUSION

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8.1 CONCLUSION:
It is seen that the Gas Insulated Switchgear is an emerging technology and its utilization
and awareness is increasing day by day. The above project successfully studies the extent of the
GIS as an important product and its superiority over the Air Insulated Switchgear.
Also, the project studies the very important process of tender bidding at Crompton
Greaves Limited, Nashik; GIS division. It focuses on various important factors that come into
play while bidding of tender. It gives a detailed explanation as to how the initiation of the tender
bidding takes place and how each step is followed in order to fulfill various Technical and
commercial; requirements of the Customer documents. All the terms that are used in the process
are explained in detail in order to get a brief idea as to what is the importance of each term. With
the help of a flowchart, an attempt has been made to simplify the explanation of the tender
workflow.

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