Husk Power Systems: Lightening up the Indian Rural Lives

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Case Details:

Case Code : LDEN085
Case Length : 19 Pages
Period : 2007-2012
Pub Date : 2013
Teaching Note : Not Available
Organization : Husk Power System
Industry : Power, Off-grid Industry
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Electricity Crisis in India

As on September 30, 2012, India had the fifth largest power generation capacity in the world with installed capacity of 207,876.04 Mega Watt (MW). However, the per capita electricity power consumption in India was just 570.9 kWh significantly lower than the global consumption of 2,806.9 kWh in 2009. According to experts, around 400 million people, living primarily in rural areas, did not have access to power. It was necessary to add 160,000 MW of capacity by 2018 to satisfy the needs of the second fastest growing economy in the world.

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Experts stated that almost all the cities in the country including the Mega cities experienced at least 360 hours of power cut per year. Tier II and Tier III cities had almost 1,000 hours of power cut per year. The situation was worse in the small towns and villages. Many of them were not electrified and those which did have electricity got on an average only 2,500 hours of electricity per year. The variation in the consumption of power differed across the country. Dadra & Nagar Haveli, a Union Territory, had the highest per capita power consumption at 11,708.59 kWh in 2009-10 (11,567.67 kWh in 2005-06) whereas Bihar had the lowest at 117.48 kWh (85.86 kWh in 2005-06) in the same period.

According to the official website of energy department of the Bihar government, out of 45,103 villages in the state, only 18,217 villages (40.38% of total villages) in the state were electrified. The state electricity board had only 2.18 million consumers (out of around 100 million population in the state) across eight transmission circles in the state as of in March 2009 .

It was this shortage and unavailability of power which eventually became a driver for entrepreneurs like Pandey and Yadav, to develop a sustainable business model around this need.

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