Syska Participating in India`s Carbon Finance based Rural Lighting Scheme
Case Code: BSTR641 Case Length: 9 Pages Period: 2021-2022 Pub Date: 2022 Teaching Note: Available |
Price: Rs.300 Organization : Convergence Energy Services Limited Industry : Energy Countries : India Themes: Public-Private Partnerships, Sustainability, Environmental Sustainability,Financing |
Abstract Case Intro 1 Excerpts
Abstract
The case “Syska Participating in India’s Carbon Finance based Rural Lighting Scheme” discusses the particulars of the unique Public Private Partnership (PPP) between public sector entity Convergence Energy Services Limited (CESL) and India-based lighting solutions company Syska LED (Syska), to supply 10 million LED bulbs in the rural areas of India. This PPP was undertaken to support the Government of India’s ‘Gramin Ujala Scheme’ (GUS), a customized program for rural India under which LED bulbs would be provided to people in these areas for Rs.10 – making them the lowest priced LED bulbs in the world. CESL offered Syska co-investment on a revenue sharing basis – where the costs and profits involved in LED distribution would be shared equally. The GUS was expected to claim carbon credits and sell them through an open process, the proceeds of which were to be shared equally by CESL and Syska. The scheme was the first social program in India to be financed entirely through carbon credits. Can this particular PPP serve as a template for more private players to collaborate with the government toward the common goal of climate change mitigation?
Issues
The case is structured to achieve the following teaching objectives:
- Understand the role of Public Private Partnership (PPP) in delivering social welfare.
- Comprehend the PPP Process Cycle.
- Recognize the benefits and risks of PPPs.
- Analyze the success factors for a PPP.
- Get to know about the mechanism of carbon credits.
- Examine the importance of carbon financing in incentivizing private players to participate in climate change mitigation projects.
Contents
Keywords
Public Private Partnership; Carbon Finance; Environmental Finance; Sustainable Finance; PPP Process Cycle; Climate Change Mitigation Projects; Carbon Credits; Rural Lighting Schemes; Government Sustainability Efforts; Rural Development; Climate Change Mitigation Projects; Sustainable Lighting Solutions; Bidding Process; Sustainable Development Goals; Global Supply Chain
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