Summer training is an important part of any MBA course and it gives us an insight on how an industry works in a real market scenario. I joined power grid (Northeastern head quarter) shillong on 30th may 2012 to carry out my project work. Being a student of finance specialization my project title was Social Cost Benefit Analysis of 800 kv HVDC substation. The substation is considered to be the largest substation in north east with an estimated project cost of Rs 1000/- crores. It is located in Bhagmara area of Biswanath chariali under sonitpur district and the main purpose of the substation was to transmit the electricity from lower subansiri hydel project to Agra.
Introduction to topic
When we evaluate the project from the view point of the society or (economy) as a whole, it is known as Social cost benefit analysis or (Economic analysis). It is done to identify how socially valuable is the project to the project affected people. When the impact of the project on the society is positive ,this are known as social benefit and when it have negative impact it is known as social cost of the project.
Experience: As my project required some primary data besides secondary data, I prepared a questionnaire in order to conduct a survey so as to collect various information regarding the impact of the project on saving and distribution pattern of the villagers. I reached the substation on 18th June, 2012 and contacted various officers who could help me in this area. Before I reached my destination, there was a huge dispute between company and the local people for land rehabilitation and other issue. Actually, the issue was that the company purchased 210 acres of land from a partnership firm where some part of it belonged to the government and moreover, the same villagers who had a dispute with the company were residing in that very part. The problem was that the villagers were not willing to move from there although the company tried to compensate them with an amount higher than the market value.
It is the human tendency that when we demand more we will get more. Some people are demanding that they will not let their land go until and unless they receive a higher compensation.
Another reason was that a road connecting the village and the project area was also a disturbing one for the company. So the company wanted to close down the road and construct a new road for the villagers outside the boundary of the project area.
In order to make up for the villagers, the company decided to provide all types of compensation for demolishing the area with a sum of Rs 8 crore which included various community development activity such as school, temple, Masjid and in other amenities. By my personal observation I found that out of nowhere end number of people increased day by day in order to receive compensation. Another reason may be related to temporary employment because all the labour force is from outside of that area. Due to this disagreement between the two parties, the work was suspended for one week.
I personally approached Chief Managing Director of that substation and request to allow me to interact with local people to carry out my survey. Then he asked me a question “Are you alone in the family?” then I simply replied yes. Then he told me the whole story of dispute and advised me to return to Shillong head quarter and to complete my project by selecting another topic.
I approach my departmental guide and explained him the whole condition of that area and I expressed my opinion to change my topic, but he advised me that these are opportunities and I should be able to make proper use out of it. Next day I went to the survey area with a zeal to interact with the local people. My bad fortune was that situation was even worse that day, local people threw stones at the office building and broke the glasses of the employees car. I decided to visit the site because I almost spent one month there and moreover it was not feasible for me to change the topic at that time.
I interacted with some of the villagers to know the root cause of the problem. As my survey continued, gathering of the people also increased and some of them were thinking that I was from power grid and they would be compensated by me. In that situation I was confused as what to do and people were becoming aggressive as they had a strong dislike for the employees of the company. I was trying to convince the villagers by assuring them that I was a student.
I took the sample of some villagers and collected some secondary information from the company and I also shared my experience with CMD sir. It was one of my most memorable experiences of my life. I returned to shillong with this partial information and also made another report on Social cost benefit analysis of Rajiv Gandhi Grameen Vidyutikaran Yojana in Assam.
Naba Kumar Das
School Of Management Sciences,
Department of Business Administration,
Tezpur University.
Email Id: [email protected]
Contact Number: +91-9707478599
Introduction to topic
When we evaluate the project from the view point of the society or (economy) as a whole, it is known as Social cost benefit analysis or (Economic analysis). It is done to identify how socially valuable is the project to the project affected people. When the impact of the project on the society is positive ,this are known as social benefit and when it have negative impact it is known as social cost of the project.
Experience: As my project required some primary data besides secondary data, I prepared a questionnaire in order to conduct a survey so as to collect various information regarding the impact of the project on saving and distribution pattern of the villagers. I reached the substation on 18th June, 2012 and contacted various officers who could help me in this area. Before I reached my destination, there was a huge dispute between company and the local people for land rehabilitation and other issue. Actually, the issue was that the company purchased 210 acres of land from a partnership firm where some part of it belonged to the government and moreover, the same villagers who had a dispute with the company were residing in that very part. The problem was that the villagers were not willing to move from there although the company tried to compensate them with an amount higher than the market value.
It is the human tendency that when we demand more we will get more. Some people are demanding that they will not let their land go until and unless they receive a higher compensation.
Another reason was that a road connecting the village and the project area was also a disturbing one for the company. So the company wanted to close down the road and construct a new road for the villagers outside the boundary of the project area.
In order to make up for the villagers, the company decided to provide all types of compensation for demolishing the area with a sum of Rs 8 crore which included various community development activity such as school, temple, Masjid and in other amenities. By my personal observation I found that out of nowhere end number of people increased day by day in order to receive compensation. Another reason may be related to temporary employment because all the labour force is from outside of that area. Due to this disagreement between the two parties, the work was suspended for one week.
I personally approached Chief Managing Director of that substation and request to allow me to interact with local people to carry out my survey. Then he asked me a question “Are you alone in the family?” then I simply replied yes. Then he told me the whole story of dispute and advised me to return to Shillong head quarter and to complete my project by selecting another topic.
I approach my departmental guide and explained him the whole condition of that area and I expressed my opinion to change my topic, but he advised me that these are opportunities and I should be able to make proper use out of it. Next day I went to the survey area with a zeal to interact with the local people. My bad fortune was that situation was even worse that day, local people threw stones at the office building and broke the glasses of the employees car. I decided to visit the site because I almost spent one month there and moreover it was not feasible for me to change the topic at that time.
I interacted with some of the villagers to know the root cause of the problem. As my survey continued, gathering of the people also increased and some of them were thinking that I was from power grid and they would be compensated by me. In that situation I was confused as what to do and people were becoming aggressive as they had a strong dislike for the employees of the company. I was trying to convince the villagers by assuring them that I was a student.
I took the sample of some villagers and collected some secondary information from the company and I also shared my experience with CMD sir. It was one of my most memorable experiences of my life. I returned to shillong with this partial information and also made another report on Social cost benefit analysis of Rajiv Gandhi Grameen Vidyutikaran Yojana in Assam.
Naba Kumar Das
School Of Management Sciences,
Department of Business Administration,
Tezpur University.
Email Id: [email protected]
Contact Number: +91-9707478599