A study on the role of cost cutting and cost reduction with special reference to power sector

Cost cutting refers to temporary cut in cost which is happened due to the economic and industrial pressure. Some of the cost cutting procedures are job cut and any allowances or facilities are being taken off. Cost reduction refers to real or permanent decrease in cost which is achieved by the up gradation of technology or through new technology. It is the new economic mantra. The secondary data is obtained from, internal reports of the company, magazines, website, and annual report of the companies of power sector. The tools and technique used for the analyzing the data includes Tables, Pie-chart, Bar-chart and simple percentage method have been used for the purpose of analysis and presentation. The gears of enterprise in Karnataka powered nascent industrial activity as early as the year 1800, when the first sugar unit was set up. In 1902, Karnataka recorded another “mega watt sized project first” - Asia's first Hydro Electric power Station in Shivanasamudram, on the banks of river Cauvery

The required information for the study is taken from Annual Reports of the Company. The comparison of Revenue and Operating profit and Export Revenue to Total Revenue and Gross profit to Total Revenue and Operating profit to Total Revenue and comparison of Revenue contribution from different power projects for the years 2009–2010, 2010–2011, 2011–2012. The revenue of the company has increased during the year 2011–12. The operating profit of the company is being increasing during the 2010–11. The company's cost is incurred more for Manufacturing, rather than other activities. The company is increasing its Export revenue in the year 2011–12