In 1998, India Government decided to kick start Electronic Industry by giving a tender for printed circuit board at a base price of 100 Rupees per board. And invited companies to bid for board lower then this. As in India, there is the term called “Bhaid Chaal”, or flocking of sheep; what this saw, was conflux of 1000s of companies eyeing a pie for then promisable Electronic Industry. The companies started thinking bid at 60 Rupees or 70 rupees; knowing that initially a low priced bid, but knowing a future credential and an earlier bird advantage in the Industry. Somehow or the other, an employee of a big aggressive company leak the news that there company was bidding as low as 33 rupees. This infuriated other companies, for the drastically low price. What they then did, that some of the companies formed cartel and decided to bid at 32 rupees. At the end of the day, the bid was won not by the Aggressive company, not by the cartel but by a chinese company which bid at 25 rupees. Till today, we import printed circuit board from China. There is no Indian company.

Now the current solar market in India. Government of India with there very best intention started the National Solar Mission on 2010, with awarding 300 MW of project through reverse bidding, with a base price of 17 rupees; then 13 rupees and then 10 rupees. The base price was calculated knowing the minimum ROI that a company can ear in these project. What was seen on this bid that the bid has gone to the insane value and some way or the other giving negative return even if an ideal conditions are assume. For example, for a solar power project in Rajasthan, a value of Rs 12 per unit of electricity will give an investor a return of 10%, assuming the land is flat, there is no sandstorm and the plant would be commissioned on time. But what we got bid at Rs 10 , Rs 9 or Rs 8. These companies won the bid, and then the irony of this is after two years of NSM, still we do not have even half of the projects under NSM commissioned. All because Indians are good at killing there business.