Building a sustainable energy future for india
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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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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

  • 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


Identifying Potential


  • 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’


Emission Reduction

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


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


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


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


Quality Assurance

Punch Plate

Punch Plate

  • Manufacturer

  • State

  • Model of the pump


Quality Assurance


Investments

Private Investments:

  • Manufacturers

    Production FacilitiesInventory

    Working Capital

  • Dealers

    InventoryCredit

    Spare parts

    Public Investments:

    Dovetailing on government projects such as million wells and tube wells scheme


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


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


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


“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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