TOWARDS GREEN MANDALS

Process Design Models For Inclusive Action For Creating Emission Free Village Clusters

A Pilot to Explore Alternatives

Small Scale Sustainable Infrastructure Development Fund (S3IDF)

Presented on

17-09-2010

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Technology Selected-1 Proposal is not to develop or demonstrate a new Renewable Energy

Technology but to try out technology deployment methodologies, to identify the optimal combination of practices for universal and accelerated adoption of RETs.

The project proposes to explore Innovative Processes, Alternate Institutions & Diverse Governance Structures to achieve universal deployment Of Proven as well as Evolving Technologies for adoption by All in specified clusters of rural habitations.

Clusters selected would be a Mandal / Block each with around 25 villages . Project would extend to 3 Mandals / Blocks.

Proven Technologies selected for deployment would include:1. Solar LED Home-lights2. Solar LED Home Lighting Systems 3. Solar LED Hawker Lights4. Solar LED Street lights5. Solar LED Study Lights for Students

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Technology Selected-2• Evolving Technologies selected would include:

1.Improved House-hold Cooking Stoves (Affordable & Acceptable to Women)

2.Energy Efficient Large Cook-Stoves (For Midday Meals Cooking In Schools, and in Hostels, Hotels)

3.House-hold size Biogas Plants using Kitchen and Animal waste- 2 to 3 Cum size. (Affordable& Aesthetic)

4.Large Institutional-Size Biogas Plants 10 to 85 Cum size. (For Gas supply / Power generation.)

5. Biomass gassifier Of different Sizes (For household & Industrial use)

6. Bio-fuel Production and Use (for local rural uses)

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Innovativeness There is no attempt to Innovate Technology even in the area of evolving

technologies. But deployment of such technologies in their current stage of development and seeking free and fair feed-back would hasten the modifications and fine-tuning of evolving technologies and devices to make them compatible with consumer requirements.

The proposal also seeks to Innovate deployment (sales & service) techniques, institutional arrangements and management & governance structures to suit environmental and societal conditions in different stages of development. The innovativeness would be in designing alternatives in each pilot area and evaluating the differences in performance to select the models for up scaling.

. Contemporaneous monitoring and comparative evaluation would need the

Innovation of new performance measurement methods and evaluation techniques.

The Social Merchant Bank model of partnering and handholding with enterprises brings sustained entrepreneurial, financial and technical capacity building elements in an innovative “on job” approach.

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Area of Implementation• Area proposed for implementation: 3 Mandals / Blocks in 3 Districts

in 2 States to provide experience of implementation process and performance variations under diverse environments.

• Districts selected:

Nalgonda, Krishna in Andhra Pradesh State

Bidar in Karnataka State.• In all three districts the Mandals / Blocks would be selected with

widest consultation with the District Authorities and civil society organisations

• Total Project Beneficiaries (approximate estimates):

Number of individuals: 1,50,000

Number of households: 37,500

Number of villages: 75• Indirect benefits of the project would extend to the whole Nation and

the World at large, as it reduces GHG emission and Climate Change Consequences.

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Implementation Strategy Innovative proposal is rooted in the experience based belief that intensive

awareness & educational campaigns on the nexus between daily activities of cooking & lighting and GHG emission and climate change consequences would make the householders receptive to RET and secure their participation in our programmes.

The innovative Implementation Strategy seeks to organize viable commercial entities by training and building competence to selected entrepreneurial local persons / agencies.

The Innovative Entities are:

1. Energy Service Centre (ESC) - for sales and service of mature technologies and related equipments - about 5 ESCs’ in each mandal.

2. Energy Development Centres for ICS (EDC) – for sales and development assistance for cook stoves (small & large) – 2 in each mandal.

3. Energy Development Centres for Biogas – for sales and development assistance for small and big biogas plants – 2 in each mandal.

• The persons to run ESC’s and EDC’s will under go intensive training and capacity building exercises. The EDC’s will get gap filling subsidy as Rs. 2000/- per month for 2 years, for collecting consumers reactions and general opinions and report to Project Authorities for use towards improving the design to suit the consumers specifications and needs. 6

Innovations in Financing - IThe work under the project is delivered through the ESC’s and EDC’s. These

commercial institutions will have to get their finances only in part from the project, but mostly from the commercial banking sources.

S3IDF, using the Award Winning Social Merchant Banker Model, will bring in the commercial co-financing by providing supporting services, know - how technology, guarantee and leveraging the Philanthropic and Development Capital.

Clean Energy Financing Solutions Award at the Asia Clean Energy Forum (ADB)S3IDF would provide adequate and appropriate training to the Managers and

Staff of the ESCs, EDCs and provide location specific business plans and prepare the banking documents and secure them the finances. S3IDF would provide implementation advisory which will include, identification of best sources for procurement of equipment and raw-material and analyze the comparative merits of the offers received from the manufacturers and service providers. The advisory services will continue till the enterprises become self-reliant .

In the case of EDCs, S3IDF will collect the feed back regarding design and analyze them and send to the manufacturers and service providers making positive suggestions for improvements.

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Innovations in Financing - II The business turnover of each ESC is estimated as Rs. 35 lakhs per year and the EDCs at Rs. 10 lakhs per

year. The total turnover of 15 ESCs and 12 EDCs in 3 Mandals would be around Rs. 570 lakhs. - It is planned that 70% of this turnover will be achieved by leveraging end consumer finance through bank loans using the Social Merchant Banker model.

The expenditure on the project :

A lump sum provision for RS 1 lakh per year per each ESC and EDC is provided and this would come to Rs 9 lakhs per mandal per year or Rs 27 lakhs for the whole project per year under this head.

Total Finance Sought is:

Sl.No One Time Capital Expenditure Rs. (in lakhs) Source of Finance

1 One time investment for organizing central office 10.00

2 One time Investment for organizing 3 Mandal Offices 15.00

Total Capital Expenditure 25.00

Recurring Expenditure:

1 Expenditure per year for Central Office 50.40

2 Expenditure per year for 3 Mandal Offices 25.20

Total Recurring Expenditure per Year 75.60

For 3 Years (Project Life) Total Recurring Expenditure 226.80

Project Investment Assistance per year 27.00

For 3 Years Project Life Investment Assistance 81.00

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Soft Loan from UNDP to S3IDF

Grant from UNDP to the Project

Provided as Loan by S3IDF to

Beneficiaries

Contributions by S3IDFTo the Project:

1. S3IDF provides the project design and periodic improvements based on feed back from the field level.

2. S3IDF provides the infrastructure for the project administration through a soft loan of Rs 25 lakhs taken from UNDP.

3. S3IDF will provide investment assistance to the extent of Rs. 81 lakhs to be given as loan to the beneficiaries.

4. High level technical, administrative and management advice will be provided through S3IDF Directors, Dr. Harish Hande, Mr. TL Sankar, Mr. Somak Ghosh, ED YES Bank and other Associates with large experience.

To the ESC and EDC Enterprises:

1. S3IDF gives the business plan for each entity under the project and assists in modifying the business plan from time to time to suit the requirements.

2. S3IDF provides training and capacity building to the Executives and Staff of Enterprises.

3. S3IDF identifies the best sources of supply of technology and raw-materials as required.

4. S3IDF assists in the negotiations with the bank and suppliers.

5. S3IDF provides continuous business development suggestions.

6. S3IDF provides “hand holding” assistance till the business entities are able to look after their interest by themselves.

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S3IDF Partners

1. S3IDF India has no partners and would not have any partners for this project.

2. S3IDF has very close association and avails of the services of the following Institutions:

Administrative Staff College of India (ASCI) for Intellectual & Management Guidance

SELCO(India) for Technical Assistance on Renewable Energy Thrive Energy Technologies (TET) for Technical Assistance on Solar PV NextEra Energy Resources (NEERU) for biogas plant construction and

operations. KSK Energy Ventures Private Limited for Action Research Programmes.

3. Besides these, S3IDF draws specific advice and guidance on specific issues from: Indian Institute of Science Bangalore-“Centre for Sustainable Technologies ’’

 (CST). Centre for Scientific Research (CSR) Centre, Auroville- Pondicherry.

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Expected OutcomesOutcomes in the Project Area:

o Involvement and Commitment of Civil Society in Emission Reduction Issues.o Huge Increase in the awareness of GHG Emission Consequences and Climate Change

Impacts.o Minimum 50% reduction in GHG Emissions is anticipated in 3 years.o Large increase in Green Cover in the village wastelands and common property resources.

Physical Outcomes:o The Deployment of a minimum of 5400 Solar PV Home Lights, 216 Solar PV Home

Lighting Systems, 1080 Solar PV Street Lights,45 Hawker Lights, about 1500 Biogas Plants Household size and 30 large Biogas Plants commercial size.

o Creation of Green Energy Employment of over 100 direct employment and about 500 indirect employment.

Technologies Outcomes:o Modification and improvements to evolving technologies like Hawker lights, kitchen waste

based biogas plants and Improved Cooking Stoves (ICS) of various sizes.o The critical analysis provided in the Project Final Report of the different performance

levels of different approaches and determination of factors which contribute to the successful deployment strategies for renewable energy in rural areas would enable the design of successful up-scaling RET deployment strategies and programmes in other places.

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Scalability & SustainabilityThe Scalability is High:

The project has a highly decentralized structure. The performance of the three Mandal / Block level organizations in setting up and providing assistance to the enterprises is monitored and the factors, which contribute to the performance would be on record. Similarly the performance level of 27 RET enterprises set up under the project and the drivers of their relative performance will be available on record. These will be extensively documented in the Final Project Report submitted at the end of the 3 year period.

The final project report will provide the data and information for such up scaling. The report also would flag the issues that may serve as the negative factors which should be avoided in the future projects.

For up-scaling project, the well documented experiences of RET deployment projects with people’s participation could help in designing similar and better projects in other places.

The project also will have trained staff in this project as well as live models of enterprises, which would help in establishing similar programmes through demonstration.

The Sustainability is High:

At the end of this project life there will be on ground 27 enterprises, which have been started as Private Ventures owned and managed by individual entrepreneurs, Self Help Groups (SHGs), or NGOs. In the 3 years they would have acquired knowledge and experience for expanding or extending their business. As they do not thrive on subsidies but on actual sales and service, their services would be required, when there are already a large number of RET devices and equipment in use.

Mandal / Block level activities could be continued as Coordination Offices for several new schemes which are likely to be initiated in future also.

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Risk / Barrier for Project ImplementationProject is driven by 27 enterprises, which if they achieve the targets of sales and service set for them, will become viable and vibrant in 3 years. They would suffer only if they loose their market due to changed circumstances like grid electricity supply at very subsidized rates, in adequate quantities to all people and purposes in the rural areas. This is unlikely in the next 15 years in India.

The biogas and improved cook stove programme may become unattractive to customers in the event of Piped Natural Gas or LPG gas being supplied to rural customers at highly subsidized rates. This is not likely to happen in the foreseeable future.

As the project is not linked to any specific technology or equipment supplier, the risk of the products marketed by ESCs and EDCs becoming obsolete will not arise. The enterprises themselves would keep their technology updated with the assistance and guidance of S3IDF.

There are no elements in the project content that en-dangers the livelihood or beliefs of any section of the community. There are no barriers in sight for the implementation of this project in its totality at present.

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Existing Infrastructure & Capacity of S3IDFS3IDF operates from two offices, a registered office which is located in Bangalore and a Divisional Office in Hyderabad .

Bangalore office is located in a rented building at 700th 15 Cross, JP Nagar, 2nd Phase Bangalore -560078, Karnataka, and the Hyderabad Office has been provided accommodation in the Bella Vista Campus of the Administrative Staff College of India, Raj Bhavan Road, Hyderabad – 500082, Andhra Pradesh.

The number of full time staff is 14 and part time 36.

Besides these the Director in charge of the Hyderabad Office is Shri. TL Sankar a former Civil Servant deeply involved in energy studies and the Bangalore office is headed by Shri. Harish Hande who is well known as a crusader for solar energy and Chairman and MD of SELCO India.

S3IDF India is managed by a compact Board of Directors consisting of Shri. Harish Hande, Shri. TL Sankar, Shri. Somak Ghosh of YES Bank. The Directors give their time and services absolutely free of cost to S3IDF.

The volume of payments in the last 3 years is over Rs. 65 lakhs per year and the receipts are about 1/3rd and the deficit financed by grants from within the country and outside.

S3IDF using the Social Merchant Bank (SMB) model has so far helped to foster pro environment small scale infrastructure services through over 170 projects and has a pipe line of about 100 projects.

S3IDF has been the recipient of several programmes awarded by prestigious institutions like GVEP (GAP Fund), REEP and BEE.

S3IDF has won several Awards such as “Clean Energy Award” in the NGO & Initiatives Categories and “Carbon Energy Finance Solution” Award (ACEF).

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Thank YouEmail Id: sankartl@yahoo.com sankar@asci.org.in

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Sl.No Officer Designation Monthly Salary Yearly Salary

1 Project Director 50000 600000

2 Tech Asst to Director 30000 360000

3 Accounts Officer 30000 360000

4 M&E Officer 30000 360000

5 Advisor (Solar) 30000 360000

6 Advisor (Bio-gas) 30000 360000

7 Advisor (livelihood promotion) 30000 360000

8 Advisor Social & training 30000 360000

9 Computer assistants (2) 30000 360000

10 Office Assistants (2) 20000 240000

11 Attender with bike 10000 120000

12 Hire four wheeler 50000 600000

13 Travel allowance for all 30000 360000

14 Posts, Telephone Communication 20000 240000

15 Total 420000 5040000

The Salary Bill & Administration of Central Office

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Sl.No Officer Designation Monthly Salary Yearly Salary

1 Project Manager 30000 360000

2 Tech Asst to Director 20000 240000

3 Accounts Officer 20000 240000

4 Programme Officer (PO) (Solar) 20000 240000

5 Programme Officer (Bio-gas) 20000 240000

6 Programme Officer (promotion) 20000 240000

7 PO Social Mobilization & Training 20000 240000

8 Computer assistants 15000 180000

9 Office Assistants 10000 120000

10 Attender with bike 10000 120000

11 Travel allowance for all 20000 240000

12 Posts, Telephone Communication 5000 60000

13 Total 210000 2520000

The Salary Bill & Administration of Mandal / Block Project Office