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Building a Sustainable Energy Future for India

Building a Sustainable Energy Future for India. Successful Business Models in Energy Sector: IDEI’s Innovative Approach IDEI 8 - 9 February 2010. About IDEI. Vision IDEI is a social enterprise committed to providing long term solutions to poverty, hunger and malnutrition. Context.

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Building a Sustainable Energy Future for India

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  1. Building a Sustainable Energy Future for India Successful Business Models in Energy Sector: IDEI’s Innovative Approach IDEI 8 - 9 February 2010

  2. About IDEI Vision IDEI is a social enterprise committed to providing long term solutions to poverty, hunger and malnutrition.

  3. Context • India: 433 million rural poor living under US$2 a day, agriculture dependent, limited access to irrigation water • Diesel pumps used widely. Expensive and encourages environmental damages • Little investment in technology which can help smallholder farmers • Unable to irrigate  migrate in search of work  leave land fallow • Solution by IDEI: treadle pump

  4. Identifying Potential

  5. Social and Economic Benefits • Cropping cycle increased from one to two or three per year. • Crop variety increased bringing more income Additionally, families with improved diet • Increased income also spent on school-going children • Convenient. In the words of a user: • ‘Difference between public transport and owning a bicycle’

  6. Emission Reduction The treadle pump has saved over 550 million litres of diesel and led to carbon reduction of 1.5 milliontonnes of CO2eq

  7. Employment Generated Million work days Monetised Value in USD Million On farm 433 541 Installation 0.61 1.06 Total supply chain =2.5 Manufacturing 0.43 1.09 Retailing 0.13 0.23

  8. Central Co-ordination Office Strategy, Resource Raising, Monitoring QA support, Production and Promotional & Sales Plan Regional Office Regional Sales & Promotional Plan Area Manager Area Office Manufacturer Operational Area Sales & Promotional Plan Business Associates Distributor Market Creation (Supply chain creation & co-ordination) Dealer Promotional Campaigns End User: Farmer Training & Installation Physical Flow of goods Feedback & Knowledge flow IDEI’s Facilitation Village Based Mechanics

  9. Promotions KrishakBandhu (KB), means farmers friend, is IDEI’s brand Supply Chain Partners: At a glance Manufacturers: 30 Dealers and Distributors: 1,800 Village Based Mechanics: 2,200 KB Branded Stalls KB Branded Video Van Wall Painting Rickshaw Campaign

  10. Quality Assurance Punch Plate Punch Plate • Manufacturer • State • Model of the pump

  11. Quality Assurance

  12. Investments Private Investments: • Manufacturers Production Facilities Inventory Working Capital • Dealers Inventory Credit Spare parts Public Investments: Dovetailing on government projects such as million wells and tube wells scheme

  13. Finance for the farmers Challenge to facilitate financial linkages: • Agriculture considered a risky investment – not insured • Sub Rs 2,000 loans • Repayment schedules not in sync with cash flows from crops

  14. Scaling up: A Constant Challenge • Financial support : Research & Development and Market Creation • Public Funding: Skewed towards large irrigation projects and communal in nature • Credit: Lacking accessibility to supply chain members and end users

  15. Future Plans • Harnessing natural resources with solar and wind power treadle pump • Expanding from 2% to 10% villages pan-India • Nano Credit: end user financing

  16. “I believe in the essential unity of man and for that matter of all that lives”: Mahatma Gandhi Thank you for listening

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