PNG as a Source of Energy: Cost Benefit Analysis for Sukriti Vidyut Udyog Private Limited




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Introduction

Finance is the life blood of business andfor a businessman, reducing cost is the single most important consideration. Sudhir M Mittal (Sudhir), CEO and director of Sukriti Vidyut Udyog Private Limited (Sukriti) situated in Ghaziabad, an industrial town in Uttar Pradesh, was in a dilemma. His company produced continuous length wires as per market demand. The wires were produced using both imported and indigenous machines.

To produce continuous length wires, it was essential to have continuous supply of power. These machines were run using a combination of power supplied by the Uttar Pradesh State Electricity Board (UPSEB) and a diesel generator. However, it took 2-3 minutes for the machines to switchover from UPSEB power to the generator. To bridge this gap, the company installed a UPS to make sure of a continuous supply of power and thus of a continuous length of wire.

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With Indraprashtha Gas Limited (IGL), a supplier of PNG , proposing to lay PNG gas lines in the industrial area, Sukriti was considering the feasibility of transferring the machines to the gas generator to prevent them from stopping. In case there was a disruption in the power supplied by the UPSEB, the machines switched over to the generator but there was a 2-3 minute gap involved in the switchover.

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