The Group Captive System: The idea!
<p>Well, given the situation at that time, late 1980s, when there was a huge power shortage in the marketplace and no money with the government to put up new power plants, uncontrollable corruption making public enterprises a failure, drastic measures were needed to push generation of electricity up.</p><p> </p><p>And these measures were taken up in late 1980s and early 1990s. This scheme of putting up captive power plants was offered, even at the turn of the new millennium.</p><p> </p><p>Capital shortage continued to plague the growth of Indian Industry since independence. Stock markets gave a new opportunity to industrialists and like the grand old man of Reliance, a few made use of the stock markets to raise large capital and ran companies that treated shareholders like what they really are, owners! Naturally, they were very successful.</p><p> </p><p>Either the stock exchanges or just a brainstorm somewhere during a discussion, we do not know which or when, but the idea of group captive was born sometime in the late 1990s.</p><p> </p><p>The idea was simple.</p><p> </p><p>If one entity could promote a power plant to meet its power needs, then it becomes captive. Now, if ten people join together and promote a power plant to meet its power needs, then what does it become? And power plant operation and maintenance are also a niche job; professional and skilled personnel are required to man it. To expect a company that specializes in food industry to set up a power plant and run it efficiently is not right.</p><p> </p><p>Therefore, these people also said, a specialist in power plants could start a power company and run it. He can have multiple consumers to join up with his new entity and make use of the power produced.</p><p> </p><p> </p><p>(To be continued next week…)</p>