In the early years of the new millennium, citizens of the growing commercial and industrial city of Pune, India, frequently faced power cuts as the state-run electricity utility struggled to satisfy growing demand. Authorities projections indicated that this scenario would continue for a number of years. A group of concerned industrialists met under the umbrella of the Confederation of Indian Industry and also the leaders of Pradeep Bhargava to find solutions to this difficulty instead of take this scenario for allowed. They soon recognized that each of the big businesses resident in the city had tremendous back-up diesel generation sets that were not commonly busy since the power supplied from the grid was not more expensive, even when they paid a commitment charge to the utility for ensuring constant power supply. Could this back up resource be utilized to meet the shortfall of electricity confronted by the city? A speedy back-of-the-envelope computation revealed that the shortfall as well as the captive generating capacity of the biggest businesses in the city matched each other. Feeding this electricity into the grid was complex technically as well as from a regulatory viewpoint.
Instead, the group understood, why don't you get the firms to utilize their diesel gensets during peak intervals for their very own consumption, thereby freeing up grid power for use by the citizens and other businesses of the city? This suggestion came to be known as the Pune Power Model. Different stakeholders such as citizen groups, the industry regulator, the government, political parties as well as the business had the desirability of pursuing this model in addition to different views on the feasibility. This case describes the challenges confronted, along with the change strategies used, by the proponents of the Pune Power Model in receiving the model implemented and accepted. It raises questions regarding the role of business in solving social issues together with the appropriateness of this kind of model.
The Pune Power Model Case Study Solution
PUBLICATION DATE: December 01, 2013 PRODUCT #: IMB441-PDF-ENG
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