Thursday, October 28, 2010

Pune Model of Captive Power Generation – A truly replicable model in cities with high scarcity of electricity

The industrial growth depends upon three basic parameters – Investment, Infrastructure and Interest (willfulness). In any industrial scenario, there are three groups of persons, three stakeholders, having their own share of concerns and lookout, having their own definitions of gains and returns. These groups comprise of – entrepreneur, government and people. 
The investment part lies in the central repository of thought process of entrepreneur. I am saying central repository, because all other issues regarding arranging and managing funds revolve round this core issue. Needless to say, providing infrastructure is a matter of concern for government. The derivability of third parameter, i.e. of infrastructure, is strongly a function of two most basic variables – i.e. Electricity and Road. The third parameter of industrial growth, i.e. interest (willfulness) is strikingly governed by achievement received on the performance of the other two parameters. And it is the third parameter, where the ingenuity has to come out from both, the government and the entrepreneur, in most distinguished and unequivocal terms to turn various ingredients of governance – nay – good governance into growth accelerators. 
But on the whole, electricity is the most basic and most important infrastructural requirement for all governed, let it be public or be industry. Being strong and committed on ensuring this very basic infrastructural support, i.e., electricity, can bring about a revolutionary jump in balance sheet of any state government. 
With this idea on backdrop of starting this blog, I want to express here on the issue of attempting, most willfully and wonderfully on bridging the gap between demand and supply of electricity and thus tackling the issue of power deficit by Maharashtra Energy Regulatory Commission (MERC), thanks to the wonderful idea of Mr Pradeep Bhargava, Managing Director, Cummins Generator Technology (CGT).
This 'No Load Shedding" model was initiated probably in 2006 in Pune, replicable in other industrial towns of Maharashtra. With the idea mooted by Mr. Pradeep Bhargava, the initiation was taken by experts from Confederation of Indian Industry (CII). The idea arose out of a situation of severe electricity crunch. In Pune, the industry deemed to have had the demand of electricity upto 35 percent of total power demand against a national average of 25 percent, which definitely resulted in load shedding in various areas of Pune. Under Pune Model, several industries were called upon to have their own captive power generation plants, with a support from the domestic power users. The installation and operation of captive power plants reduced drastically the load on power distribution agencies, which resulted in more supply of power to domestic areas. It was estimated that the overall reduction on load was upto 90 MW, against a peak demand of 900 MW, which was considerably appreciable. Against this effort, the citizen of Pune had to bear a very meager sum, i.e. 40 paisa only per unit. It is learnt that MERC, so enthused by the success of this model, got it replicated in other industrial towns of Maharahtra, with reliability charge fixed by the MERC ranging from 21 paise (Pune) to 75 paise (Aurangabad).
No doubt, the deliverables have been marvelous. The Pune model is required to be studied with all its pros and cons, and replicated in other industrial towns of the country as well. The model has achieved citizens' satisfaction and come up with a solution with no more expenditure on government exchequer for mitigating the load shedding problem. Though the quantum of electricity thus generated and thus added to the overall supply for domestic users may be small, but, even if it is 10 percent total demand, it may be taken as a small leap towards a big and brighter goal.