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The Tata owned Coastal Gujarat Power Limited is seeking to reopen Power Purchase Agreements (PPAs) with state owned distribution utilities because of increase in imported coal prices resulting from a change in Indonesian laws. The Central Electricity Regulatory Commission (CERC) has decided to provide relief through a “compensatory tariff”. This is opposed by the power purchasers. Simultaneously, another Reliance Energy owned power project is seeking relief from unprecedented change in exchange rates using the CGPL decision as a precedent. The CERC and the power purchasers have to decide what to do next.

An estimate of the fair rate of return on capital is a critical input into tariff regulation. A too high estimate will lead to high tariffs for consumers; a too low estimate will not provide adequate incentives for investment. The Airport Economic Regulatory Authority of India has issued a consultation paper for finalizing the norms and procedure for estimating the fair rate of return. It now needs to reconcile the differing view and approaches of different stakeholders.

In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy investments to arrive at a long term strategy for the role of renewable energy in its power generation portfolio and the financing of renewable projects. The case reviews the Indian government's policies to promote renewable energy; the evolution of the renewable energy sector; and Reliance Power's financing of renewable energy investments. The case requires identification of alternative long term strategies and their financing implications. This case serves as an introduction to renewable energy from the perspective of Reliance Power, a large private power generator of the country. These projects also provide a learning opportunity for Reliance Power to deal with fast evolving renewable technologies.

In 2017, it was a challenge to assess the future of global trade. It was an open question whether the US financial crisis and the recession that it triggered would mark a turning point for the liberal post–World War II world order. If one looked toward Europe, China, Latin America, and Japan, there was a flurry of activity. New trade agreements were being completed and pursued. In Washington, DC, on the other hand, President Donald Trump seemed set on ripping apart and/or renegotiating any trade deal the United States was ever part of.

This case explores Trump's opinions and emerging policy stance on trade, bilateralism, and the global economy, among others. It also gives an overview of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) and asks whether the Trump presidency would constitute a major challenge to the WTO and what it stood for in 2017.

Greenko, a renewable power generating company investing in biomass, small and medium hydro power and wind power projects, had projected to achieve 1GW (Giga Watt = 1000 Mega Watt) of installed capacity by March 2015. The company had been financing its projects with debt from Indian banks and financial institutions on a project finance basis and it had to now decide whether to refinance the project finance debt with an international bond issue of USD 550 million. The case provides an opportunity to discuss the public policy and financing aspects of renewable energy in India.

Studies the impact of tariffs, subsidies, and quotas on the U.S. steel market. Focuses on “winners” and “losers” from different policies. Applications to the events in the U.S. steel market in 2001 illustrate the impact of these policies.

This case features a prominent antidumping case in the United States against six of its major foreign shrimp suppliers. The case fits well in a discussion and analysis of the (welfare) consequences of protectionism, the basic case for free trade, and the political economy of protectionism.

In February 2015, Suzlon had just completed its financial and asset restructuring, following financial default after rapid growth through debt financed acquisitions in the financial boom ending in 2008. The restructuring resulted in a significant decrease in the promoter's equity stake. Suzlon now has to decide how to respond to an offer by the DilipSanghvi Group, promoters of Sun Pharma, to acquire a large equity stake in Suzlon for Rs. 1,800 crore. If Suzlon were to accept the offer then both the existing promoters and the DilipSanghvigroup would have the same stake of about 22% each. The case will help students examine the need to align financing and business strategy on the same plane. It will also help them understand details about restructuring of financial and business strategy in the face of financial distress.

The case study helps students to understand how public-private partnership (PPP) airports runs their business, how regulatory policies impact their business. The case also explains why the Cochin International Airport business model is so unique compared to any airport in India.

In 2016, Airport Economic Regulatory Authority released a new tariff regime for Cochin International Airport Limited (CIAL).CIAL has undergone challenges because of the tariff changes (changes every five years), which were implemented in 2017. This has impacted their business model. The CFO of CIAL was under pressure to share the impacts with the shareholders and to provide a way forward for the business. Cochin International was known to be one of the cheapest aeronautical tariff charging airports. The case discusses the issues of a public utility when it is under a regulatory price regime. The case explains different regulatory mechanisms (single till: the whole commercial revenue is cross-subsidized). The case discusses issues regarding Cochin International Airport, which is a public utility under PPP mode. Since 2016, regulator has changed the price regulatory regime from light touch (no price regulation only monitoring) to hybrid till regulation (a percentage of commercial revenue is cross-subsidized). The case explains what made Cochin International Airport so unique. It explores the challenges because of the regulatory regime, how it affects Cochin airport’s strategy for business. How should the management of CIAL to act on the above issue? What will be the impact? Will they need to change their business models?

The case is basically focused on MBA level students who are in their final year. There are various MBA courses in which this can be taught, which can be infrastructure management, infrastructure regulation, domain courses such as airport management. The student should have basic knowledge of economics, public utility and business strategy. The case helps them understand the impact of regulation, the role of the regulator and its impact on business strategy.

Teaching notes are available for educators only.

CSS: 10 Public Sector Management.

Marketing management, pricing strategies, zoo management, non-profit organizations.

Difficult. Recommended for courses: marketing, strategy, pricing, customer behaviour, management of non-profit organizations, emerging markets.

The case study deals with the pricing dilemma of the Birch House Zoo located in an Eastern European country. The zoo has implemented capital-intensive developments in the recent years its main attraction the Tropic World included. The organization is managed and subsidized by the city where it is situated, yet the City Council lately expressed that they wanted the zoo to be self-financing by the end of 2011 by finding new source of revenue. In 2009, the operational expenses of the zoo exceeded EUR five million; however, the revenues were far bellow this level. The tariff structure did not change in the last 30 years as pricing always had to be adjusted to the local purchasing power; recent developments and new attractions are only partly priced in at the moment. In the light of the special environment in which Birch House Zoo operates, the director has to initiate key actions that could bring the zoo to the level of breakeven in its operations and make it financially independent.

Ability to create pricing and revenue generating strategies; understanding idiosyncrasies of the management of non-profit organizations regarding this matter; understanding price elasticity issues.

Teaching note.