Aditya Birla Centre Case Competition Name(s) Institution Dr. S. Jeyavelu & Dr.

Saji Gopinath Indian Institute of Management Kozhikode

Contact Author Details Dr. S. Jeyavelu Assistant Professor (OB & HR Area) Indian Institute of Management IIMK Campus P O Kozhikode 673 570 Kerela, INDIA Phone: +91 495 2809118 (O); +91 495 2809346(R); +91 9847750757 (C) Email: velu@iimk.ac.in; jeyavelu@yahoo.com; jeyavelu@rediffmail.com Proposal: Jalanidhi A Story of Innovative Transformation Water, water everywhere but not a drop to drink. Samuel Taylor Coleridge Introduction Ironically, Kerala known for its waterways and tourism based on backwaters is also one of the states with lowest availability of potable water, despite the investment of thousands of crores of rupees on infrastructure for water supply by the government. The supplies based on the existing infrastructure are erratic and limited to a few urban centers and the rural masses were left to fend for themselves. In a short span of six years, Jalanidhi an innovative project where the government redefined its role from that of a provider to a facilitator of public services achieved what conventional models could not achieve in the last fifty years. The case of Jalanidhi provides valuable insights on the process of this transformation and the innovative choices involved in terms of organizational design, revenue model and governance structure. Water Supply Infrastructure - Pre Jalanidhi Period Potable water is supplied by the Kerala Water Authority (KWA), which is the nodal governmental agency for identifying water sources, build the necessary infrastructure, and maintain the same to ensure supply of safe drinking water. The Kerala context is unique with a difficult terrain and households dispersed across the state and not concentrated to specific towns or villages. Even though it is blessed with abundant rainfall all of it is drained off by the 44 rivers in the state. In the past the infrastructure for water supply is riddled with political interference, siphoning off of funds, inefficient bureaucracy and people with a recipient mindset. As a part of the decentralization drive within Kerala, many of the projects have been handed over to the Grama Panchayats. Even then the efficiency, effectiveness and sustainability of the water supply was found wanting. The Kerala government initiated an innovative scheme funded by World bank where a new entity Kerala Rural Water Supply Authority (KRWSA) was set up to facilitate a new model of water supply infrastructure in partnership with the end users or beneficiary communities (BC) supported by NGOs. This new project was titled Jalanidhi meaning abode / trove of water in Malayalam. The new infrastructure build would not only be owned but also managed by the BCs. This new model envisaged fund mobilization, capacity

building and finally ownership and management by legal entities comprising of members of BCs. The Jalanidhi personnel play the role of a facilitator in enabling the process. Innovative Features of Jalanidhi Project Alternate model of water supply & sanitation New model / approach instead of a government department / quasi government body / private operator for providing drinking water / sanitation Innovative choice of the organizational design - temporary network structure Project network of four players involved in implementation Project personnel, Support Organizations (NGO), Grama Panchayats (GP), and Beneficiary Groups (BG). Projects owned and managed by user communities capacity building through partnership with NGOs and Grama Panchayats Integrated approach - Standardization, Scalability, Workable Revenue Model for Sustainability Change in mindset from free water to affordable water & sustainable supply As of October, 2006 a total of 2716 projects have been completed and BCs are effectively maintaining these. The success of this innovative model had led the government of Kerala to consider scaling up across the state. The learning from this case could provide valuable insights on innovative organizational designs (temporary network structure) and strategic choices on infrastructure and utilities to MBA students and executives. Learning Objectives 1. Strategic choices in terms of alternate models / designs available for utilities. 2. Organizational Design choices in terms of temporary network structure, the contextual dimensions and implementation issues. 3. Change and Transformation of agencies involved in distribution of utilities Usage of Case The case can be used predominantly in the organization design & theory, and organizational change & development courses for MBA students and working executives. It could also be used in services management, and infrastructure & public policy courses. It can be used in executive development programs on strategic change, organizational change & transformation, and infrastructure & public policy. Case Study Methodology The case study would be based on data collected from the following Interviews Project personnel across hierarchy (one district) The stakeholders -beneficiary group, NGO, GramaPanchayat officials & elected politicians The Minister of Water Supplies, and state and central government bureaucrats The world bank officials (funding agency) Published material - press releases, interviews, evaluation studies, etc. Internal review reports and other documents as applicable

The case study would further draw from the authors interactions with the project engineers and project managers of the Jalanidhi project during two training programs that have already been completed.