Pune Power Model - A successful example of PPP pattern

Conceived in 2004 and made operational from 4th June 2006, the popularly known "Pune Model" steered by CII has resulted in the city of Pune being completely free from load shedding from June 2006. For many months and years prior to that, Pune was facing load shedding regularly from one to four hours a day as was the case with every other city and village in Maharashtra (with the exception of Mumbai which is not in the purview of MSEDC). This Innovative Model was based on some fundamentals which include.....

The Public Private Partnership ( PPP ) pattern where the civic society and industry work with Government agencies to solve problems

Mitigation of Load Shedding in Pune would not be at the expense of any other Community and will come through additional energy generation

The incremental cost of this initiative would be paid for by the beneficiaries (Citizens of Pune in this case). Hence a "pass through" for MSEDC with no financial burden on State of Maharashtra.

It would operate within the frame work of governing laws & regulations

The cost recovery from citizens has been so framed that it is both "progressive' as well as conducive to "conservation". All consumers whose monthly energy consumption is less than 300 units a month, have been spared from paying "reliability charges" levied to recover the incremental costs of getting extra power at higher cost. So small and marginal consumers get the benefit of 24x7 power without paying a premium. This further encourages consumers to bring down their monthly consumption below 300 units so that they don't have to pay the extra charge. This is both innovative and result oriented.

After an elaborate process conducted under the guidance of Maharashtra Electricity Regulatory Commission (MERC) which involved, amongst others, three Public Hearings, CII's proposal was accepted by the Citizens & the Regulatory Commission. Since then (now for more than two years) Pune city has Zero Load Shedding.

This innovative approach wherein the Civic Society worked for helping itself was a "Pace Setter", not only in terms of "Power Sector Reforms", but also gave credentials to the belief that if stakeholders cooperate & coordinate, then many issues can be addressed without necessarily seeking Government's intervention.

It is very heartening that the concept of "Pune Model" have since been made applicable first to Baramati town and now to the entire Navi Mumbai area (including Thane, Vashi etc.). Maharashtra is the first state in the country where this unique model is bringing relief to the large section of the population.

Such efforts require complete engagement and energy of all stakeholders. CII has always, and would once again like to acknowledge the continued support extended by NGOs such as Prayas, the positive perspective projected by the press and media as well as outstanding and selfless gestures of CPP Companies which went out of their way to benefit their city. MSEDC, particularly the Office of the Chief Engineer, Pune, played an extremely cooperative role in helping "shed load shedding" in Pune. This became a reality due to extremely positive and proactive vision and commitment of MERC headed by Dr. Pramod Deo.

As we look at the future, CII Maharashtra under the Chairmanship of Mr Pradeep Bhargava would like to take this initiative to other cities in Maharashtra and thereafter to other communities in this country. It is CII's desire and plan to make "Pune Model" as "India Model".

CII would like to make a sincere appeal to citizens of Pune that in return for the comfort and facility they have, they should make a solemn promise to conserve energy they consume. This is the best appreciation and reward that citizens can give back to the Nation. One simple target can be to keep the energy bill the same in rupees which they were paying before the reliability charge came in force. In other words, reduction in consumption should offset the reliability charges that get's levied. This would be a fair proposition. This appeal from CII is being made to all users including industrial and commercial, government and municipal consumers and most importantly, the residential users as well.

We have the opportunity of setting in motion another "Pune Model" of Conservation.