Energy & Lighting Projects

Lighting Solutions for Street Vendors

This project type brings affordable lighting services to poor street vendors/hawkers without access to the grid (or a reliable grid). The concept involves the creation of a locally owned and operated, scalable microenterprise which provides lighting to the hawkers for a small daily fee. The hawkers are typically sellers of fruits, flowers, vegetables, and cooked food. Most hawkers currently use kerosene or LPG lanterns or emergency lights. Kerosene and LPG lanterns are expensive to use given the cost of kerosene and LPG in the grey market. . Additionally, kerosene and LPG lanterns generate unhealthy fumes, as well as considerable heat, which can damage the fruits, flowers and vegetables that the hawkers vend. In comparison to the kerosene and LPG lanterns, the emergency lights -- which are charged from the main electricity supply -- are cheaper, but have a short life of less than a year.

The microenterprise is typically run by a local individual or NGO in the community. S3IDF assists the microenterprise in developing a commercially-viable business model and obtaining financing. The entrepreneur will invest a small proportion of the total capital needed. The remaining financing comes as a loan from a local bank for which S3IDF normally provides a guarantee in the form of a fixed deposit. In cases where a loan from a local bank is not possible, S3IDF can provide a direct loan.

Entrepreneurs utilize efficient lighting systems consisting of compact fluorescent (CFL) bulbs and batteries that can be charged using a Solar Photovoltaic (PV) system, grid power, or a hybrid of both. The batteries are charged during the daytime at a centralized charging station and in the evening, they are delivered to the hawkers for their use. The hawkers need the light points for an average of four hours every evening, after which the used batteries are collected and returned to the charging station. The batteries are supplied to the hawkers on a daily rental payment for use.

The hawkers’ light point projects have significant effects on both the entrepreneur serving the hawkers as well as the customer base. Individual entrepreneurs are able to increase their monthly income and better provide for their families. The hawkers get access to cheaper, safer, and more reliable lighting solutions that allow them to work late into the night and better display their wares (which could in turn lead to increased sales).

Solar Lighting

Light Rentals for Hawkers, Kundapur/Koteshwara, Kundapur Taluk, Udupi District, Karnataka

The first lighting project which S3IDF helped to incubate, the Koteshwara hawkers’ light point business was started by B. Pradeep, a former employee of S3IDF partner organization and solar lighting technology manufacturer Selco. The project used completely photovoltaic (PV) lights. Netravati Grameen Bank provided a Rs. 1,05,000 loan for the initial 30 light points in September 2003. Pradeep began the business in Kundapur, and eventually expanded up the local highway to the town of Koteshwara in 2004. In order to finance the expansion, Pradeep sought a loan for 2,20,000 from Syndicate bank for 40 additional solar lights. Currently, Pradeep only runs the lighting business, using a Maruti van to supply the hawkers on a daily basis. Pradeep started off charging Rs. 10 for each light per night, and now charges Rs. 12.

Light Rentals for Petty Shops/Hawkers, Hassan, Hassan District, Karnataka

Murugesh, a tailor, began the Hassan hawkers’ light point business in January 2005. The project initially cost Rs. 2,70,000 for 50 solar lights, which was covered by a loan from Syndicate Bank, guaranteed by S3IDF. In 2006, Murugesh expanded through a loan from Cauvery Kalpatru Grameen Bank for 75 more lights. Murugesh now uses three small three-wheeled vehicles (called autos), and employs two. He charges Rs. 12 per night per light, up from Rs. 10 when he started the business.

Light Rentals for Hawkers with MASARD, Bangalore, Karnataka

S3IDF has also incubated several hawkers’ light point businesses in the Bangalore area. The first was with the NGO MASARD, which runs an orphanage in the Koramangala area. The project began with 30 photovoltaic lights, and has undergone two expansions since, with the addition of 35 lights and a used three-wheeler vehicle for Rs. 225,000 in December 2004, and the addition of 30 more lights for Rs. 153,000 in August 2005.


Light Rentals for Hawkers in Bommanahalli, Bangalore, Karnataka

Vijaykumar was an auto driver from the Bomanahalli village in Bangalore. After seeing MASARD’s PV light point business in Koramangala, Vijaykumar contacted S3IDF for assistance in setting up his own hawkers’ light point business in his area. Keen on going for a 100% solar charging station, Vijaykumar first approached Selco, which then directed him to S3IDF. S3IDF helped Vijaykumar secure a loan from Canara Bank. With an initial investment of Rs. 183,000, Vijaykumar started with 40 light points. In December 2006, S3IDF invested Rs. 140,000 to assist in Vijaykumar’s expansion, including purchasing a used car and more batteries.

Light Rentals for hawkers in Mysore, Mysore District, Karnataka

Rajendra and Jayaram were partners in a business selling and repairing appliances, such as pressure cookers, door to door. They shared one three-wheeler vehicle to run the business. Together, they wanted to develop a hawkers’ light point business to serve areas of Mysore. By providing a partial loan guarantee, S3IDF helped each entrepreneur secure a separate loan for Rs. 138,000 from the State Bank of Mysore. Beginning in March 2005, the entrepreneurs began operations. They use the same three-wheeler to make light and battery deliveries.

Grid-Charged Lighting

Light rentals for Hawkers in Peenya, Bangalore, Karnataka

Entrepreneur Jayakumar was a rickshaw driver from the industrial northwestern area of Bangalore. A relative of fellow light point entrepreneur Vijaykumar (A69) by marriage, Jayakumar approached S3IDF upon the suggestion of Vijaykumar. S3IDF initially invested Rs. 79,000 in Jayakumar’s business, which started with 40 small grid-charged batteries from a small supplier near Lal Bagh Main Gate in Bangalore. When those batteries broke relatively quickly, S3IDF provided an additional loan for the purchase of 30 more reliable batteries. Jayakumar works exclusively on the lighting business now. He and his wife travel in his auto together to make deliveries to three area markets at 8th Mile Road, Dasarahalli, and Malleshwaram, and have plans to expand to more markets and purchase a larger vehicle in the near future.

Light rentals for Hawkers in Naganathapura, Bangalore, Karnataka

Ramesh, the nephew of Mr. Vijay Kumar, who run’s S3IDF’s Bomanahalli hawkers lighting business, was interested in running a similar business for hawkers in nearby Naganathpura. Ramesh owns an auto, which he already used to supply milk to houses as well as shuttle neighborhood schoolchildren from home to school. From these two services, he earns approximately Rs. 7500 per month. At the encouragement of Vijay Kumar, he also started running a light point business for hawkers on his own, supplying around 30 light points on a daily basis. However, the small batteries he was using were unreliable, which caused him to lose customers. Since he did not have the money to invest in new batteries, he came to S3IDF for financial assistance. He needed around 50 batteries and lights to run his business in Naganathpura, and has potential to expand his business to 75. S3IDF provided a direct loan of Rs. 54,000 Hybrid (Solar/Grid) Lighting

Light rentals for Hawkers in Chitradurga, Chitradurga District, Karnataka

This project started in October 2005. The entrepreneur was Mr. Prakash. Prakash was an agriculturist in Shivganga village, 20 km from Chitradurga town. The project started with 30 lights with an investment of around Rs. 124000. The project was supported by the local regional rural bank, Pragathi Gramin Bank (then Chitradurga Gramin Bank). Prakash, not residing at Chitradurga, found it very difficult to run the project. He tried to employ local people to run the project. However, this did not work satisfactorily. From March 2007, S3IDF took over the project by paying up Prakash’s loan. S3IDF employed Chaitanya, S3IDF’s NGO partner in Nayakanahatti to run the project. Chaitanya appointed Mr. Prakash (no relation to the Prakash who founded the project), a local person to run the project. Mr. Prakash will run the project on a hire purchase basis, such that the ownership of the assets gets transferred to him in two years time starting from Sep 07.

Light rentals for Hawkers in Belgaum, Belgaum District, Karnataka

This project was started in August 2005. Entrepreneur Srinath Aithal, who worked in desktop publishing and screen printing, was given a loan of Rs. 1,50,000 by Karnataka Vikas Grameen Bank (then Malaprabha Grameen Bank) to purchase 40 hybrid grid-solar lights. S3IDF provided a guarantee for the loan.

Aithal expanded his business by another 20 lights (grid power only) in October 2005, with direct financial support from S3IDF. Aithal has completely repaid his loan to S3IDF. He now works full-time in the hawkers’ lighting business, doing all deliveries and pickups by himself.

Light rentals for Hawkers in Sagar, Shimoga District, Karnataka

Entrepreneur Prashant Pai runs an electronics repair shop in Sagar. In March 2005, he started a hawkers’ light point business using a Rs. 1,18,000 loan from Syndicate Bank (guaranteed by S3IDF). Pai started with 30 hybrid light points, and has expanded by another 10 lights since June 2006. Pai still runs his electronics repair shop, and employs someone to conduct light and battery deliveries and pickups on a day-to-day basis.






Light rentals for Hawkers in Tumkur, Tumkur District, Karnataka

Started in January 2005, the Tumkur Hawkers’ light point business was built by Nandish, an environmentalist and social entrepreneur. Nandish is a Fellow of Ashoka, the worldwide organization for the promotion of social entrepreneurship. The business was started with Rs. 1,75,000 and 40 hybrid lights. In September of that year, the project was expanded with the addition of 20 grid-only lights.

Keeping the business robust and profitable hasn’t come without significant challenges for Nandish. In January 2006, a competitor entered the market, offering lower quality lights at a lower price. Additionally, the expansion of the main road in Tumkur drove off many of Nandish’s hawker customers. To make matters worse, a fire destroyed the stalls of five of Nandish’s customers in early 2006. Despite these setbacks, the business is still afloat and profitable. In fact, Nandish even employs a worker to do battery and light deliveries and pickups.


Lighting for Households and Petty Shops

In rural villages throughout India, many households and petty shopkeepers that lack access to a reliable grid-based power supply still rely on kerosene or LPG lanterns to provide lighting during the nighttime hours. Not only do such lanterns provide an inconsistent quality of light, but they are also polluting and relatively expensive due to the need to continually purchase fuel.

In this project model, a local entrepreneur in a village provides households and local shopkeepers with solar-grid hybrid or grid-based lighting systems on a purchase or lease-to-purchase basis. S3IDF connects the entrepreneur – either a local NGO, individual, or self-help group (SHG) – with the appropriate technology supplier and helps the entrepreneur obtain financing, typically by providing a partial loan guarantee payment to the bank.

In some of the implementations that S3IDF has facilitated, the entrepreneur provides solar lanterns powered by photovoltaic (PV) cells as well as some grid-based power. In areas in which residents are not able to pay the additional cost for solar technology, cheaper grid-only lighting can be provided. With grid-only lighting, roadside vendors charge a battery at home, which they then take to their business in the evening.

The customer typically makes a small up-front payment, followed by small daily or weekly installments over the period of four to six months.

Households and local shopkeepers now own a lighting system that is cheaper, less polluting, and offers more consistent light than a kerosene- or LPG-powered lantern.

Hybrid (Solar/Grid) Lighting

Light rentals for Villagers in Tayakanahalli, Bellary District, Karnataka

A member of Priyadarshini, a local women’s SHG, ran a business to rent solar-powered lanterns to local households. The business began in May 2005 with an investment of Rs. 9000, enabled by a loan from Tungabadhra Grameen Bank and a partial loan guarantee provided by S3IDF.

Light rentals for Villagers in Tayakanahalli, Bellary District, Karnataka

Sharanesh, a local partner from the NGO Sri Gurukanaka Vividodesha Vedike, came to S3IDF with a need for 8 grid-only lanterns for villagers in Tayakanahalli to purchase. The customers are mainly people with petty shops who are using gas lanterns at night for their business. S3IDF provided a loan of Rs. 25,000 to Mr. Sharanesh for the sale of lanterns to the customers, which was done on a lease-to-purchase basis. The project started in October 2006.

Light leasing for Villagers in Huillikere, Bellary District, Karnataka

This project provided poor villagers in Hullikere village with 7W solar lanterns and 10 W panel. The project emerged as part of UNOPS survey work where Sharanesh, a local partner from the NGO Sri Gurukanaka Vividodesha Vedike, conducted surveys and later demonstrated solar lanterns to the households. Twenty households were interested in the lanterns. However, they were not in a position to pay the entire amount in one go. The local bank was not able to give loans to each household as the loan size was very small for the bank. This problem was solved by a local men’s SHG group coming forward to take the entire loan amount for the 20 lanterns. One member of the SHG group collects monthly loan repayments from the households with a small collection fee and pays the bank. The SHG member has also been trained to attend to any minor repairs. The loan was made possible through S3IDF’s partial risk guarantee to Pragathi Grameen Bank. The project started in October 2006.

Light leasing for Petty Shops and Households in and around Tadas, Haveri District, Karnataka

Implemented in January 2007, this project provided petty shops and households in Haveri district with LED lanterns and 7W solar lanterns on a lease-to-purchase basis. The project emerged as part of UNOPS survey work where local NGO partner Chinyard identified over 20 customers in Tadas village and surrounding villages who were interested in purchasing the lanterns on a lease-to-purchase basis over a six-month period. The cost of the investment was around Rs. 43,000, and S3IDF provided Chinyard with a direct loan.

Grid-Charged Lighting

Lighting services for petty shops in Nayakanahatti village, Chitradurga District, Karnataka

This project supplied grid charging systems (around 25) and five solar lanterns to the hawkers in Nayakanahatti on a lease-to-purchase scheme. The grid charging systems cost Rs. 1300 per piece and the solar lanterns cost Rs. 3600 per piece. Payments were collected from the hawkers on a daily basis. The grid charging system was paid for over a four-month period, and the solar lanterns are paid for over a six-month period time. The total investment was Rs. 48,000, with S3IDF providing a direct loan to NGO partner Chaitanya for the provision of the equipment. In February 2006, the S3IDF provided additional support for an expansion of lighting sales. The expansion investment was Rs. 14,000. At the same time as this expansion occurred, UNOPS survey data collected by Chaitanya indicated that there was a market for grid-charged lights, pressure cookers, and LED lanterns in and around the village. The project then expanded to provide enterprise support to Chaitanya to engage in selling these items. Chaitanya provides these items on both a purchase and lease-to-purchase basis. For direct purchases, S3IDF provides one month working capital support, and for lease purchases, S3IDF provides a term loan of six months. This investment is approximately Rs. 28,000.

Information & Communications Technology Projects

Computers in Schools

As part of its information and communication technology (ICT) portfolio, S3IDF has helped bring computers into several Kannada- and English-medium schools in rural Karnataka. These projects have been taken on at the request of the local communities themselves, who are keenly aware that integrating computer training and computer-based education into the basic curriculum is critical to providing students with the skills to succeed in today’s economy. S3IDF has helped these schools develop financially viable and sustainable models to obtain computers by making students pay a nominal fee based on their ability to pay, while at the same time ensuring that no student is left behind.

S3IDF assesses the school’s ability to contribute to the cost of the computers, as well as the students’ willingness to pay, to determine the amount of loan financing that can possibly be obtained from local financial institutions. S3IDF provides loan guarantees where necessary to secure bank funding. To reduce the capital costs, wherever possible, S3IDF works to procure used computers from corporations. In order to further enhance the financial sustainability of the project, as well as make the computer center a resource for the community at large, the schools can also open the lab for community use and training classes after school hours.

S3IDF networks with technology suppliers to determine the most appropriate technological solutions to equip the computer lab, including backup power systems to keep the computers running during the all too frequent power outages. Internet connections are also incorporated into the lab to give the children access to a wealth of online information and applications. The necessary teaching content is procured from organizations such as Azim Premji Foundation and Kannada Ganaka Parishat.

These projects have vast benefits both for the children attending school as well as the community at large. Providing affordable access to computers and computer-based education for all students enhances education in traditional subject areas, as well as equips students with necessary skills for the modern economy. With the school computer centers open to the community after school hours, the same benefits are extended to adults as well. Additionally, access to the Internet provides the community a wealth of information at their fingertips.

ICT Project at Kondlahalli Rural High School, Molakalmuru, Chitradurga District, Karnataka

This Information and Communication technology (ICT) project is to provide computers to a Kannada-medium high school (Kondlahalli Rural High School) in Kondlahalli village, Chitradurga district, Karnataka state. The computers will provide computer assisted learning and computer training to children during the school hours. The computer center will be run in a financially sustainable manner through the revenues generated from the services provided through the computer center. Since the village experiences daily power cuts, providing reliable electricity supply to the computers by means of an uninterrupted power supply (UPS) system is also part of the project. The computer center has four computers when it started in June 2005, with enough backup power for six hours of use. Educational software for the computers was provided by the Azim Premji Foundation, an education-oriented nonprofit. Chitradurga Grameen Bank provided a five-year loan for Rs. 60,000, with S3IDF providing a partial guarantee. The rest was funded by grants (Rs. 47,000) and the school itself (Rs. 83,000).

Subsequently, S3IDF helped the school to get 10 computers from Intel Corporation for free of cost sometime in October 2006.

ICT Project for Rural School, Tayakanahalli, Bellary District, Karnataka

This Information and Communication technology (ICT) project is to provide a computer to Sri Guru Kanaka Lower Primary School (from first standard to fifth standard) in Tayakanahalli village, Bellary district, Karnataka state. The project started in July 2005. The computers will provide computer assisted learning and computer training to children during the school hours. The computers will also be utilized after school hours by providing computer related services, such as extra computer training for children. The computer center will be run in a financially sustainable manner through the revenues generated from the services provided through the computer center. Since the village experiences daily power cuts, providing reliable electricity supply to the computers by means of an uninterrupted power supply (UPS) system is also part of the project. The total cost of the project is around Rs. 27,000. Of this, Rs. 7,000 (25%) of the investment cost was borne by the school. The remaining Rs. 20000 (75%) was financed through a loan to the school by the local branch of Pragathi Grameen Bank. This loan was enabled by the provision of a partial risk guarantee by S3IDF.

ICT Project with Mahatma Gandhi School, Challakere, Chitradurga District, Karnataka

This project provided 14 computers to a school in Challekere town. The school is a government-aided school with both Kannada and English medium classes from grades from 1 to 10. Most children coming to Kannada medium classes are from poor households. The school previously had seven computers being run by a private party. The computers were restricted to only English medium students and did not have any internet connectivity. The school was not in a position to extend the computer classes to Kannada medium grades due to the fees being charged by the private party. The school was approached by us to introduce computer classes for all students and introduce internet connectivity through the computers. The computer center could also be utilized after school hours by the local community. The project is running from June 2006.

The total project investment of approximately Rs. 191,000 was financed in part by a loan of Rs. 140,000 from Pragathi Grameen Bank (with a partial loan guarantee provided by S3IDF), as well as a contribution of Rs. 50,000 by the school. The computer center will be run in a financially sustainable manner through the revenues generated from the services provided through the computer center. Kannada-medium students are charged Rs. 200/year for use of the computers (although payment is not enforced), while English-medium students are charged Rs. 300.

ICT Project with Maruti School, Taluku, Chitradurga District, Karnataka

The project is to provide two computers to a school in Talaku in Challekere Taluk. The school is a private school run in Kannada medium. The concept is similar to the Kondlahalli project. The school has approximately 200 students with classes from pre-kindergarten to fifth standard. All students work with the computers, with different computer skills curricula tailored for different grade levels. The total investment of Rs. 52,000 was financed partially by a loan of Rs. 39,000 from Pragathi Grameen Bank (with loan guarantee by S3IDF), as well as a contribution of Rs. 13,000 by the school itself. Students are charged Rs. 300/year for use of the computers, which all students have been able to pay without difficulty. Computer classes for non-students are run during the evening at a charge of Rs. 1200 for a six-month course. The project is in operations from June 2006.

Coin Phones

In India, coin phones (pay phones) are an important and affordable means of communication for those on the go, or for those who cannot afford a home telephone connection. For the cost of one rupee, a coin phone can be used to reach anyone in India. Coin phones are nearly ubiquitous in urban India, where shopkeepers and hawkers provide the telecommunications service as a supplemental income source. Their presence has further exploded since they became wireless. The coin phone operator pays the phone company for the coin phone, which is connected wirelessly to the switched telephone network. Thereafter, a portion of the revenues collected by the phone are kept by the operator.

While many small and petty shops would find great value from the income generated by a coin phone, unfortunately, many are not able to afford the initial cost of investing in the phone. Often, coin phones are only operated by larger and wealthier shopkeepers. S3IDF’s NGO partners in several towns and villages have identified a desire by small and petty shopkeepers to invest in coin phones. This is where S3IDF has come in to help.

S3IDF, working with local partner NGOs, has invested in coin phones for roadside petty shops in several towns and villages in rural Karnataka. The petty shops either purchase the coin phone outright or on a lease-to-purchase basis.

These projects have a dual impact. The shopkeepers operating the coin phones get an additional source of income, and villagers get access to affordable telecommunications services.

Telecom services at hamlets around Nayakanahatti, Chitradurga District, Karnataka

Nayakanahatti has three main roads with a number of shops (around 75). During August 2006, the village has around 20 coin phones and these phones are with the well-to-do shops. This project will provide coin booths largely to small shops and petty shops who would otherwise find it difficult to invest in the coin phones. Our NGO partner, Chaitanya, identified 15 shops for coin phones and one for a teacher in a neighboring hamlet.

S3IDF provided Chaitanya with a direct loan to provide coin phones to petty shops of Nayakanahatti.

The project has now expanded to various villages of Chitradurga.

Water & Sanitation Projects

Church School Night Soil Biogas Plant, Mysore, Karnataka

S3IDF has provided technical assistance to a church group seeking to build a biogas plant in Mysore, Karnataka in April 2003. In order to deal with human and animal waste treatment at the Congregation’s School, the church group sought to build a biogas plant that would produce methane gas to partially meet the school’s energy requirements. Additionally, the treatment plant would also create compost that could be used in the farm and dairy that the school planned to create as part of its infrastructure. The farm and dairy would provide employment to the local poor, satisfying S3IDF’s pro-poor criteria.

S3IDF conducted initial studies on design, researched technology suppliers, and conducted a preliminary financial analysis for the project. S3IDF connected with numerous partners, including ASTRA (Application of Science and Technology to Rural Areas) and KVIC (Khadi and Village Industries Commission) which were critical in providing guidance or technology for the project. Since the project was built using equity funds obtained by the church group, S3IDF’s role was limited to technical assistance and monitoring and evaluation.

The project efficiently processes organic human and animal waste into usable by-products—gas, which can supply energy to the school, as well as compost for the school’s farm and dairy. This helps minimize the school’s environmental impact by cycling waste outputs into useful inputs.

Transportation Projects

Bullock cart for transportation of agricultural produce, Shivaganga, Chitradurga District, Karnataka

This project, implemented in June 2005, is to run a bullock cart rental business for small farmers in the village of Shivganga in Chitradurga district. Villagers need a mode of transportation to ship their agricultural produce and other items from their farms to the village center. In the absence of bullock carts, the farmers have to rely on tractors, which are expensive for small farmers. It makes economic sense to rent the tractors only when the farmer has a sufficient quantity of items to transport. The bullock cart was be owned by Kuvempu Trust, a local NGO in Shivganga which is engaged in educational activities and rural development activities. The Trust was renting out the bullock cart to farmers on a daily rental basis. S3IDF financed the project by providing a three-year loan for Rs. 15,000.

After running the bullock cart for about a year, Kuvempu Trust sold the bullock cart as they found managing the bullock cart’s operations difficult. Kuvempu Trust sold the bullock and closed the loan outstanding with S3IDF.

A75t. Provision of transportation vehicle for transporting milk and goods in Chitradurga district

Project Photos

Milk being collected at Nayakanahatti milk collection center

Milk being loaded on to the collection van

The milk collection van

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJq4Sw8ef-QXQ

Project Details

Transportation is a critical infrastructure need in rural areas. Transportation facilities are required for two primary purposes. One is to transport people as people need to move from the smaller dispersed villages to the larger economically active villages and town centers for finding work(labour), reaching markets for selling and buying goods and for accessing services such as health. The other need for transportation is to transport goods into and out of the villages. Due to the dispersed nature of the villages, low volumes from each of the villages, inability of the villagers to do the large investments for transportation vehicles and lack of financing for such investments, there is a shortage of transportation vehicles serving smaller and remote villages.

This project is to invest in a goods transportation vehicle to transport milk and goods. In the district of Chitradurga and in it, in the taluk’s of Challakere and Molkalmuru there are ‘milk routes’ in which milk is collected from various villages and delivered to the closest chilling station. Two routes in these taluks are open for sale, that is, the existing person doing the transportation wants to come out of the business. The reasons for this are multiple. The main reasons are the following:
The milk cooperative in Karnataka (Karnataka Milk Federation-KMF), which is the buyer of the milk, gives a minimum rate for transporting the milk. KMF makes a 15 days delayed payment which reduces the attraction for a commercial player
The business has a risk in that, the vehicle has to be run on all days of the year. The loss from a day’s absence needs to be borne by the transporter. To ensure that there is no absenteeism, old poorly maintained vehicles cannot be used.
The milk has to be delivered to the chilling center on time. Late delivery could mean rejection of the entire load. This means a disciplined transportation service, which is not easy for most people
The roads in the route are not very good. Due to this, commercial players are not ready to put their new vehicles on this route.

The route for which the vehicle will be put is the Gaursamudra-Nayakanahatti-B G Kere route. The total distance of this route is 134 km. The route covers the following villages-Gaursamudra, Chikhalli, Ullarthi, Karikere, Mirabayanahalli, Paramsagara, Talaku, Timapanahalli, Gajunahalli, Nayakanahatti, Mallurhatti, Kamadalgudi, Salahalli, Chikamalahole, Abbanehalli and B G Kere. The vehicle needs to do two trips in a single day. One in the morning which starts at 6.00AM and ends at the chilling station at 10.20AM and the other in the evening from 6.00PM to 10.20PM. The total amount of milk collected in one trip is around 500 liters. KMF, the buyer pays for the transportation at the rate of Rs. 5.8 per km.

To improve the utilization of the vehicle, the vehicle will also be used when it is free to transport goods to and fro from Nayakanahatti village to the main cities of Davengere, Challakere and Chitradurga. The vehicle will require two people, one driver and one helper

Due to the fact that transporting milk is not commercially very attractive, the difficult nature of the business, and the extent of financing required, there is a gap which S3IDF will help to fill. S3IDF’s SPV will initially invest in the project. The SPV will get a bank loan for the vehicle from the local regional bank, Pragathi Gramin bank.

Project Size Details
The vehicle which will be bought is a TATA 407. This has a capacity of around 5.5 tons. The price of the vehicle is around Rs. 5,35,000 with registration. A deposit of Rs. 35,000 needs to be paid to KMF, which is refundable.

Project Impact Details
The transportation vehicle will benefit atleast 15 households in each village where it goes for milk collection. Therefore in total the project will benefit directly 240 households. With an average of 5 per household, the project will benefit 1200 people. Another impact of this project is that it will give continuous employment to two people, the driver and helper of the vehicle. Doing this project has the potential to have multiple benefits. Once S3IDF understands the dynamics of this project, we can encourage more people to get into the dairy industry by assisting further investments in the dairy industry, investments from transportation to chilling units to a dairy.

A 75q Provision of cable and related services in Nayakanahatti village, Chitradurga District, Karnataka

Project Photos

A view of Nayakanahatti village

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcIX3RG7Wd66Ug

Project Details

This project is to provide cable TV services to households in Nayakanahatti. This is an annuity project for S3IDF. The business has excellent returns and could be a good source of income for S3IDF. There is a huge demand for cable TV in Nayakanahatti. However, the existing supplier is not providing good service and people are unhappy with the provider. S3IDF will enter this business by partnering with CRWCWS. CRWCWS will use its managerial capabilities to run the business well by providing good service to the village households. In addition to entertainment channels, through the cable TV, educational programs for children will be specially run. Additionally programs with a social message can also be run when required. The project will start by supplying cable TV for a subset of houses. The existing operator charges Rs. 60 a month and has promised to provide 6 channels but is not delivering it. Our cable TV enterprise will provide 20 channels charging Rs. 75 a month. The financing for this project will come from our SPV vehicle.

Project Size Details
The total investment size is Rs. 1,16,000.

Project Impact Details
The project will impact around 300 households. With an average of 5 people per household, the project will impact 1500 people. But in terms of developmental benefits, looking at delivering educational programs to children as the only developmental benefit of this project, the project will impact 600 children, taking 2 children per household.
The project can have significant future benefits. Since we will be reaching individual households through a communication medium, this medium can be utilized to communicate socially relevant messages to the villagers. Also, we could use the opportunity of interaction with the households to introduce other energy efficient infrastructure projects such as pressure cookers, CFL lights.
For S3IDF, this can be a revenue generator

A75r - Efficient and Smokeless Clay Stoves, Nayakanahatti

Project Photos

Musturappa, the stove maker


A 2 vessel clay stove in use

Project Financial Details
http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKQhn2X_GzaPw

Project Details
Musturappa(age - around 40) and Nagendrama(age - around 30) live in Donehalli village which is on the road connecting Challakere town and Davengere city. Donehalli is around 20 km from Nayakanahatti. Musturappa and his wife (the couple) come from the potter community with a family history of doing clay items for over 400 years.

Supply side issues: The couple does clay pots and various types of simple mud stoves, including three stone stoves, single and two vessel chulla stoves for households. In the exisiting supply chain, traders come from the larger towns of Chitradurga and Davengere and purchase stoves in wholesale and sell it in the large cities. The couple currently works for 20 days in a month and stop work during the rains as they are not able to burn the clay stoves due to the wet conditions. They augment their income by running a petty shop near the bus stand at Donehalli. They do not have a bank account. Simple investments such as an overhead covering where they burn the clay stoves and additional working capital could help them to increase their production.

Demand side issues: Informal surveys around villages about the stoves reveal that people are interested in installing the stoves, but there is no enterprise existing to do this. The main attraction to the villagers is the cost of the stove. The cost price of a single vessel stove is around Rs. 120 and is sold in the cities for around Rs. 180. The cost price of a two-vessel stove is around Rs. 180 and sold in the cities at around Rs. 300. Even at these prices there is demand for the stoves.

The project is about creating an enterprise, which will be able to deliver stoves to the surrounding villages at a price less by at least 30% of the existing price being sold in the cities by intervening both in the supply side and demand side.On the supply side, make investments to increase their production. On the demand side, provide transportation infrastructure to make the stoves available in the villages and provide product credit to the villagers to buy the stove.

Project Size Details
On the supply side, investment in a shed where the stoves are burnt, around Rs. 5000. Working capital support of another Rs. 10,000. This should be enough to increase production from the current 500 stoves a year to 1000 stoves a year. This intervention can come from the local bank.

On the demand side, investment is required in a transportation vehicle. The vehicle will used only as and when required to transport the stoves to the villages. So, this can be made available on hire. The poor customers might require credit support such that they pay for the price of the stove in about 3 months. On an average around 50 stoves to 75 stoves can be sold in a month. The working capital support on the selling side will be around Rs. 16000 in the first 3 months.

The first step in doing this project is on the supply. Build an enterprise which can do the selling of the stoves. Once this runs viably, make investments in the supply side to increase production. To understand the demand side issues, this project will be run for 3 months and the returns after 3 months will be observed.

Project Impact Details
The impact of this project will be significant. At an investment size of only Rs. 227 per stove, we will be touching one household and the requirement of this stove is universal. In total in three months time we should be selling this stove to around 180 households.