Innovating with Infrastructure: How India's Largest Carmaker Copes with Poor Electricity Supply

Conventional wisdom suggests that self-generation is a high-cost and inefficient—but often unavoidable—solution to unreliable public power supply in developing countries. This article examines the power problem from the perspective of a large industrial user and its upstream supplier firms in India....

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Bibliographic Details
Published in:World development 1999-10, Vol.27 (10), p.1749-1768
Main Author: Gulyani, Sumila
Format: Article
Language:English
Subjects:
Automobile industry
Developing countries
Electric power
Electric power plants
Electricity
Energy Politics
India
Industrial development
Industry
Infrastructure
LDCs
Less developed countries
Power supply
Power-sharing
Studies
Suppliers
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Summary:Conventional wisdom suggests that self-generation is a high-cost and inefficient—but often unavoidable—solution to unreliable public power supply in developing countries. This article examines the power problem from the perspective of a large industrial user and its upstream supplier firms in India. It analyzes the innovative generation and power-sharing system that this firm has devised to solve both its own power problems as well as those facing some of its suppliers. This research finds not only that self-generation is economical but also that self-generation combined with power-sharing serves as a “model” that policy makers can replicate to ameliorate the power problems plaguing firms in developing countries.
ISSN:0305-750X
1873-5991
DOI:10.1016/S0305-750X(99)00083-2