Skip to main content

Prabandhan 2010 -Pragyaan Lecture Series, Day 1

Pragyaan : The Lecture Series

Day 1 of Prabandhan 2010, Annual Management Conclave of IIT Kanpur

Topic of Lecture : PPP in Waste Management : Opportunities, Barriers and Way ahead


Speaker : Mr. S N Mukhpadhyay, COO IL & FS.


The Day 1 of Pragyaan, the Lecture Series in Prabandhan 2010 kicked off with a discourse on the globally emerging field of Waste Management.


Mr. Mukherjee began the discourse by pointing out the two aspects by which we look at management. We have one view which focuses on revenue, income generation and consumption led growth. However, the second view of management is the focus on the impact of this consumption driven growth process on the environment. The world as we see it is driven by the former view leading to sustainability issues faced in the present as well as in the future.

Mr. Mukherjee focussed the attention of the budding managers in the audience to the emerging field of Municipal Solid Waste Management (MSWM). He explained that this field is an important area due to the current proliferation of indiscriminate dumping and no conformance to scientific waste management. These methods followed in many countries globally lead to the generation of green house gases (GHG) along with many other harmful toxics which harm the environment. In this backdrop, the Municipal Solid Waste Management Rules (2000) was setup to govern municipal solid waste management and direct the responsibility of waste management to the municipalities in a well defined framework where the state government plays an enforcing role.

IL & FS played a pioneering role in this area in India. Within a few years, the rampup of waste collection has reached over 3000 tonnes of MSW. The 3 areas of operation of IL & FS in India which were covered by the speaker were the Okhla Compost Plant, Construction and Demolition Project and Gorai Dumping Ground closure. Each of these diverse projects were explained in depth with focus on the initial challenges, the operating issues, the revenue realization, the long term benefits to all parties involved.


The speaker gave an insight into the fertilizer market which was dominated by the chemical fertilizer companies until government intervention created a market for the sale of organic compost to these markets. IL & FS followed a path of tie-ups with major firms to ensure that the synergy will reduce the distribution costs and stabilize the output channels for the compost generated in the MSW site. Mr. Mukherjee enlightened the audience on the improvements in quality standards, management capabilities in waste disposal and revenue realizing opportunities done by IL & FS on entry into this field. The bottomline for this field lies in the revenues from compost sales but relies heavily on the revenues from Clean Development Mechanism (CDM) i.e. carbon credit sales, governed by the Kyoto Protocol. The major players include Asian Development Bank and World Bank which have created carbon funds acting as intermediaries or traders of carbon credits between the polluting parties and the efficient parties. Utilizing this structure, futures trading of carbon credits help in realizing a revenue stream for 10-15 years. This acts as a major incentive to the municipalities which generate revenue by adopting clean technologies as well as to companies like IL & FS which get a share in the carbon credit revenue generated.

The second type of activity covered by the speaker was Construction and Demolition projects.The rampant dumping of construction material currently destroys the ecology as well as results in health hazards. This kind of indiscriminate is especially seen in metropolises and fast growing cities resulting in a blot in their ecology. Mr. Mukherjee shared with the audience the activities done by IL & FS in this area by the collection and processing of these wastes to produce paver blocks, side kerbs etc which are used by government during road constructions. The latest development in this area was the finalizing of IL & FS by the Delhi government to clean up the entire Delhi area of construction waste as well as MSW prior to the commencement of the Commonwealth Games.


The third area which the speaker provided insight into was the scientific closure of the Gorai dumping site near Mumbai. This dump site was in use since 1972 and was an ecological disaster causing pollution, bio degradation and health hazards. IL & FS came in and undertook the scientific closure as well as the operation-maintenance of this site for 15 years post closure. The revenue realized for this project was through the sale of the futures of carbon credits on top of the government funding for this project. The government also realized futures funds from the Asian Development Bank for this project along with many indirect benefits such as appreciation in the land rates in the surrounding areas.


Mr. Mukherjee elaborated the business case for this venture was first undertaken by IL & FS and only after the success of this model, other companies have adopted similar MSW projects. The benefits are seen for all parties involved as governments get futures funding, debt funding from entities focussed on sustainability funding, land appreciations and fulfilling international sustainability obligations. The companies undertaking such activities also get access to funds from various investment vehicles which focus on sustainability projects and realize revenues through the carbon trading linked to the project. The timelines are longer and the investment in such projects require patience since returns can only be seen after 4-5 years with break-even achieved late. However, such endeavours are perfect examples of the growing importance of sustainability projects which are essential for the balanced progress of mankind as well as the preservation of ecology. Such efforts not only reward from the philanthropic and humanitarian perspective, but also provide revenue generation opportunities through the fast growing carbon credit market.


The speaker wound up by taking many interesting questions from the enthusiastic audience who were treated to a freewheeling discussion on a range of topics which brought out the many facets involved in business feasibility planning, revenue realization, interconnectedness of social issues and government interventionist policies with overall growth of the economy as a whole.

Report Prepared By:
Nabarun Sengupta(nabarun@iitk.ac.in)

Published By:
PR & Media Cell, MBA-IIT Kanpur (prmba@iitk.ac.in)

Comments

Popular posts from this blog

The Dawn of A New Beginning - MBA Batch 2017-19

“Opportunities multiply as they are seized.” -Sun Tzu




‘I am an IITian’, even after two months here at IIT Kanpur this one line still fills our heart with excitement. Each one among the 54 students here who have started the journey into the MBA programme of IIT Kanpur, batch of 2017-19, feels that pride and with that equally realizes the responsibility it carries.
We started our journey here on 20th July. Meeting our batch mates for the first time still feels thrilling. Though we knew each other through the whatsapp/facebook group that was created by our seniors to make our registration process as smooth as possible. We were given several assignments before the registration to give us an inkling of the idea of how life at IIT Kanpur is going to be. Assignments were planned in a way such that we get a hands-on experience on case studies, presentations, group activities and article reading. We began burning the midnight oil as a precursor to actually doing it, and how! These assignments u…

Tips from Top - "Various dimensions of leadership." Mr Amit Kasliwal, India Head - Corporate Sales, Ford India.

Leadership is one of the most desired traits for success in life and MBA students at IIT Kanpur were fortunate to get a fresh perspective on the topic from the top echelon of corporate world, when Mr Amit Kasliwal, India head of corporate sales at Ford India visited the campus to interact with the students.

Sir described leadership as the zeal to identify and solve problems. Citing an example, sir said that India has a myriad of problems and out of those; transportation was one of the major issues. Ford is dedicated to solve this problem. Talking specifically about the corporate sales department, he told that by selling cars to taxi operators, they created entrepreneurs, thereby solving the problem of job creation at that level.   
Further describing leadership, sir claimed that a leader must have a long term view, and should be enthusiastic about other’s agenda, thereby creating opportunities and ‘win-win’ situations. According to sir, and rightly so, sustainable leadership can be …

International Exposure: Japan, Utkarsh Maurya, MBA 2nd Year

JENESYS 2016 from 27th Feb to 7 March 2017. About JENESYS 2016 The Ministry of Foreign Affairs of Japan promotes people-to-people exchanges between Japan and the various nations of the Asia-Pacific, North America, Europe, Latin America, and the Caribbean regions. The Asian and Oceanian regional component of this exchange program is called “JENESYS 2016”- Japan-East Asia Network of Exchange for Students and Youths. Around 250 students and working professionals were invited for the 7th batch of JENESYS 2016 (Theme: Economics) from 12 countries: India, Indonesia, Cambodia, Philippines, Singapore, Timor-Leste, Thailand, Laos, Malaysia, Myanmar, Brunei and Vietnam. The objective is to promote mutual trust and understanding among the people of Japan and participating countries, and regions, to build a basis for future friendship and cooperation. The Indian Delegation 23 youths were selected from India; out of them 15 were students and the rest were working professionals. From IIT Kanpur, 3 stud…