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Managerial Case Analysis: Bhavnath Temple

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Managerial Case Analysis: Bhavnath Temple

PRM-40 Section-B

Group: Six Sages

Table of Contents

Sr. No.


Page No.


Executive Summary



Situational Analysis






Statement of Objective



Problem Statement






Decision Process






Best Alternative






Contingency Plan



Annexure 1


1. Executive Summary: 

With the possession of political power post-independence, the central and provincial governments of India occupied the driver’s seat for the agricultural, social and economic advancement of the country. In the case of Bhavnath Temple, the Minister-in-charge for the Public Works Department in the State of Gujarat has to decide the future course of action on the construction of earthen dams on rivers Lokmata & Sadmata in Northern Gujarat. In the initial government proposal, the dams are designed to hold 4700 million cu. Ft. of water for irrigation of 92000 acres of land in 3 districts. Bhavnath Temple, a holy shrine, revered by many inhabitants of the region, is located in the projected reservoir. To placate the concerns of the villagers, the government has offered provisions of safeguards, in order to protect the temple & its surroundings from floodwaters. The villagers have shown some inclinations towards the acceptance of this proposal.

An alternative proposal was floated after extensive discussions among government officials. In order to boost the irrigation coverage further, the new proposal suggested raising the levels of the dams, thereby increasing the capacity of the reservoir to 5700 million cu. ft. It was expected that the marginal increase in construction costs of the dams and the canal network will be covered by the substantial increase in the coverage area of irrigation, which would eventually result in higher agricultural production & revenues. However, under this proposal, it would not be possible to save the temple from submergence, and hence, relocation of the temple remains the only option, which is vehemently opposed by the local population.

The government should move ahead with the initial plan, as it is a win-win situation for both the parties- the government and the villagers. The government should adopt a proactive planning approach for the resettlement of villagers who will be impacted by the creation of the reservoir, and it should take the necessary steps in advance to generate alternate sources of livelihood for the displaced inhabitants by skilling the local people or aiding them financially and technically in their income generating activities. This decision will be in line with the government’s objective to achieve rapid economic progress without hurting the religious sentiments of the people. The timely execution of the project by taking all the stakeholders on board will add to the government’s credibility in the region


2. Situational Analysis:

2.1 Introduction

The provincial government of Bombay chalked out a proposal to build earthen dams on Lokmata and Sadmata rivers, in Northern Gujarat. The project has a high degree of feasibility. As per the calculations of engineers of PWD, the expected revenue post completion of the project outweighs the costs of construction, compensation and resettlement. The plan also takes into account the construction costs of gates on water weir, which will act as safety controls for the Bhavnath Temple. This sub-plan resonates with the government’s intention to preserve the wishes of local people and honor their religious beliefs.

A second proposal was prepared for the construction of dams after several rounds of consultations. It focused on raising the levels of the dams which would result in augmenting the capacity of the reservoir by 1000 million cu. Ft. The Command Area will increase, as the irrigation facilities will spread to a larger area. Increment in agricultural production & revenues will offset the costs associated with construction work on dams and new canal network. However, it will be impossible to secure Bhavnath Temple under this proposal. The village population does not accept the relocation of the temple and its associated structures to a new location and this puts the government proposal of economic development at loggerheads with the religious sentiments of the village folk. A quick comparative analysis of the two proposals can be seen in Annexure 1.

2.2 Statement of Objective

The newly formed government plans to intensify the agricultural activities in the region by bolstering the irrigation network that would yield significant revenues from agricultural produce and help in economic development of the region. The concern of the villagers is the security of Bhavnath Temple. The temple has numerous followers and the annual fair harbors many devotees from far-off places, which arrive at the temple to receive blessings.

2.3 Problem Statement

The government has to decide on one of the proposals. The government can move with the initial proposal, which caters to the economic development of the region without hurting the religious sentiments of the people or the government can move ahead with the second proposal, which delivers economic development at a much larger scale than the previous proposal, but goes against the religious views of the people, thus inviting a vigorous resentment from the villagers who revere Bhavnath Temple. The government has to shift the temple to a different location under this proposal.



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