crei booklet

8/8/2019 Crei Booklet

1/44


2/44

Winrock International India

All rights reserved.

The information presented in this publication resulted from investigations of the

work of the Commercializing Renewable Energy in India (CREI) project supported

by the United Nations Foundation and implemented by Winrock International India,Winrock International and the United Nations Department of Economic and Social

Affairs (UNDESA). The views expressed are not necessarily those of any of these

agencies.

Written and designed by Eric M McGaw.

www.mcgaw-associates.com

Printed by Pragati Offset Private Limited

www.pragati.com


3/44

1

1. Let there be light!How village women empowered themselves by

investing in solar-powered lanterns 5

2. Getting something from nothing

Generating incomes with an oil expeller 12

3. Cooking with biogas

How biogas stoves turn lives around 17

4. Harnessing the sun

Women use a solar dryer to control the market 22

5. Were farmers, not barbers!

New alternatives from forgotten crops 29

6. Cleaner cooking, healthier girls

The benefits of biomass cooking 35

ContentsContents


4/44

2

CREIs objectives

Income augmentation and rural poverty

alleviation through RE services

Generation of local employment

Local capacity building

Market development Local and global environmental benefits

The CREI approach Renewable energy (RE) for productive

end uses

Technology-neutral, demand-driven

intervention

Location-specific institutional design

Market development through localentrepreneurs

Project components

Entrepreneur incubation

Institutional and human capacity

building

Sustainable financial mechanisms

RE business resource centre

Pilot demonstration of business plans


5/44

3

Renewing lives with renewable energySix rural business models for Indian villages

Renewing lives with renewable energySix rural business models for Indian villages

Commercializing Renewable Energy in

India (CREI) is an innovative project that

focuses on providing reliable and viable

energy services to rural communities through

renewable energy (RE) technologies. The

project, which runs through early 2006, is

funded by the UN Foundation. It is jointlyimplemented by Winrock International India,

Winrock International and the United Nations

Department of Economic and Social Affairs

(UNDESA).

CREI identifies RE services that generate

incomes and increase the buying power of

communities, thus enabling RE markets todevelop. A major outcome of the project is

the development of rural enterprises out of

such institutions as womens self-help

groups (SHGs), livelihood committees and

thrift committees.

After assessing the market in seven districts

in the state of Andhra Pradesh, the projectselected two Mahbubnagar and

Rangareddy for implementation. Over 20

specific business plans were developed, and

technical assistance in capacity building,

awareness creation and entrepreneur


6/44

4

incubation was provided. Financial

mechanisms were also designed to create

access for the rural poor.All the interventions were facilitated in

collaboration with M Venkatarangaiya

Foundation (MVF), an NGO that works with

self help groups on sustainable development

and child labor.

The case studies described in this booklet

illustrate the CREI projects success in

providing value addition and income

generation through RE technology

interventions. The potential is large to

replicate these business models throughout

Andhra Pradesh in the short term, and

throughout the country in the long term.

Like anything new, the technologies

discussed in this publication did not come

about overnight. It took a great deal of time

and hard work by dedicated people who

were challenged to create market access

and linkages to new products for rural

people. But when awareness of the

usefulness of the products that could bederived from RE was created in the target

communities, and a marketing strategy had

been put into place, there was no looking

back!


7/44

5

1. Let there be light!

M

ondi Gowrelly village in Yacharam mandal, Ranga

Reddy district, is like many other villages in ruralAndhra Pradesh. Most of its inhabitants make their living

from agriculture. Some cultivate crops, some sell them,

some do both. They have similar problems also. One of

these problems, especially for women who find it

inconvenient to travel far from home to seek work, is

finding reliable sources of income.

Another common problem in the village is the

undependable supply of electrical power. By and large,

New prosperity:

the women of the

Chaithanya Mahila

Sangam with their

solar lanterns.

New prosperity:

the women of the

Chaithanya Mahila

Sangam with their

solar lanterns.


8/44

6

the villagers are quite used to getting along without

electricity. Few are wealthy enough to afford electrical

appliances like irrigation pumps or televisions. And like

most farmers, they are accustomed to sleeping and

waking early, so illumination at night is usually

unnecessary.

However, there are times when artificial light is very

desirable. Like most Indian parents, the residents of

Mondi Gowrelly want their children to succeed in school,

so when important exams loom large in their youngsters

lives, having access to light for extra study time is very

important. Light is an advantage during social functionslike marriages that often take place at night. Also, once in

a while, an important community task such as desilting a

pond cannot be completed in daylight. Traditionally, when

The solar panels on thevillage sarpanchs rooftoprecharging the lanterns. A

fully charged lanternshines brightly for about

four hours.


9/44

7

villages need artificial light, they rent kerosene lanterns.

But these petromax lanterns have several

disadvantages. They are smoky and unreliable, even

dangerous. They are also expensive to rent, and one

has to travel far to obtain them.

Chaithanya Mahila Sangam, a local womens self-help

group with 35 members, wanted to find a solution to

the perennial problem of how to earn a steady incomewithout leaving the village. They were also concerned

about the inconveniece and expense of petromax

lanterns. How to solve both problems?

The CREI team, which was focused squarely on just

this sort of problem, had a solution. They mounted an

awareness campaign about using solar-powered

lanterns to earn money. Village representatives,

Sangam members proudlyshow their Resolution Book,

duly attested withthumbprints and signatures,

as well as their accountbook and vouchers.

Training in accounting andbusiness procedures has

done much to empower

these villagers.


10/44

8

including Laxmamma, the sangam

president, were invited to a demonstration.

Solar power, they were told, is clean,

available and best of all free. Renting them

to customers at a price competitive with

that of petromax lanterns would be a sure

way to provide the sangam with a steady

income without having to walk long

distances to work as labourers.

Winrock selected an appropriate

manufacturer (see box) and supported the

sangams with rural meetings andorganised training sessions. Marketing,

mostly by word of mouth, the fastest

method of communication in rural settings,

was supplemented by displays at malls,

local fairs and panchayat meetings.

Asked about the initial reaction of the

villagers to the lanterns, Laxmamma said,At first some people were scepticalbecause our village has electicity. But

power outages are frequent, so over timethe value of the lanterns was noted.

Private sector collaboration

Andromeda Energy Technologies, a

private company with a service agenda,

is part and parcel of CREIs solar lantern

project. It was a fortuitous match the

government was looking for suppliers of

alternative energy and Andromeda

needed a reliable source of funding to

fabricate its lanterns.

To get the project off the ground,Winrock held an awareness meeting in

Hyderabad. Once the villagers interest

was assured, Andromedas depots

served as convenient training centres for

the sangams. The next step was to

conduct training for repairmen who

could service the lanterns.

Above: Andromeda

employees display two

solar lantern models.

Inset: convenient

directions in Telugu.


11/44

9

Laxmamma and her colleagues decided to purchase five

solar lanterns from Andromeda at a reduced corporate

rate of Rs 2500 ($60) each for a total of Rs 12,500

($300). CREI provided the sangams 50 percent shareof the capital as a loan.

A three-day training session on best practices for both

CREI staff and sangam members was organised. Also

invited were some television and radio repairmen who

were trained to repair switches and other movable parts.

No stone was left unturned to give the sangam every

chance of success.

They are men, we arewomen, but look! Theystand behind us! says

Laxmamma. Clearly, thesewomen have taken the

initiative.


12/44

10

The sangam members proudly signed their Resolution

Book and immersed themselves in the business of

renting their lanterns. Each committee member took a

lantern home to show to their neighbours. Word spread

rapidly that a viable alternative to petromax lanterns was

available.

The sangam charges a rental fee of Rs 20 ($0.45) per dayfor members, Rs 30 ($0.70) for others. They make

Rs 500-600 ($12-14) every month about Rs 8000

($180) a year. Importantly, the lanterns provided

immediate income, which meant that the sangam was

able to begin repaying their loan right away.

What about the reaction to the initiative in other villages?

Explains Raman Nageswara, CREI Project Officer,

Groups in 16 villages are now in the business of rentingout solar lanterns. Each has five lanterns. The groups are

legal entities, each one is registered as a cooperative

society. They have bank accounts, they deal with tax

issues in short, they have a sense of empowerment

they never knew before.

Clearly, Laxmamma and her colleagues have brought

light to their village in more ways than one!

Mr Nakka Narsimha, thevillage sarpanch, keeps thelanterns safe in his house. He

has supported the initiativefrom its inception.


13/44

11

Business summary

Business: Solar lantern rentals Enterprise: Chaitanya Mahila Sangam

Market: 16-village cluster

Products: 5 solar lanterns manufactured by Andromeda

Energy, a private company

Management: Self Help Group (SHG) members

Location: Mondi Gowrelly Village, Ranga Reddy district

Economics

Cost of lanterns: Rs 12,500 ($280) for 5 lanterns

Financing: 50% CREI loan, 50% SHG

Terms: 7.5% interest over 5 years

Rental Charge: Rs 20-30 ($0.45-0.70)

Annual Profit: Rs. 8,000 ($180)

SHG expects to make full repaymnent in 2-3 years.

Scale-up potential

Of the 500,000 SHGs in Andhra Pradesh, about 200,000 have

obtained credit from banks and micro-lending organizations.*

If only 1% of these SHGs are interested in taking up these

activities, it amounts to 5000 new enterprises. This scheme has very high potential under the Ministry of Non-

conventional Energy Sources (MNES) project called the Village

Energy Security Initiative (VESI). VESI will be launched in

about 200,000 remote villages throughout India.

* Source: National Bank for Agriculture and Rural Development

(NABARD)


14/44

12

2. Getting something from nothing

O

ne of the most important agricultural interventions

that has come out of the CREI project is thecultivation of oilseed tree crops, especially jatropha

and pongamia. Both of these oilseeds are poisonous

and cannot be consumed by either humans or animals,

but the oil is used for medicinal purposes and is also a

highly effective organic pesticide. These oil-bearing

seeds, along with traditionally popular neem and

castor, can be used to make money for cash-poor

village women. Since the seeds of each of these four

plants mature at different times of the year, oilseeds of

one species or another are available nearly year-

round.

The difficulty with oilseed production is the cost of

expelling the oil from the seed. Oil expellers are

expensive about Rs 1.5 lakh ($3500) and therefore

out of reach of most villagers. However, MVF

as part of its promotion of the

Cleaning neem seeds.commercialization ofrenewable energy, agreed to

guarantee a loan of Rs 1 lakh

($2300) to a womens sangam

in Kothapally village, and the

women contributed Rs 50,000

($1160) from their savings.

The sangam accrues its

savings from the dues ofmembers at Rs 20 ($0.50) per

member per month, as well as

from interest on loans to

others. The women lend at

24% interest, about Rs 2

($0.05) per month as opposed

to outside moneylenders, who

The oil expeller at work.


15/44

13

charge 60% interest, about Rs 5 ($0.12) per month. Newmembers are continually invited to join the sangam, and

all castes are welcome.

The location was strategic. Kothapally is located close to

the important town of Mall, where the residents of 25

villages spread throughout three districts (Mahbubnagar,

Ranga Reddy and Nalgonda) do their shopping. The

proximity of Kothapally to Mall means that the products of

the oil expeller can be conveniently marketed.The Kranthi Mahila Sangam, which now has 100

members, was established in 2000. The president,

Guddula Narsamma, says Traditionally, we collected wild

oilseeds daily, selling them at Rs 1-1.5 ($0.02-0.03) a kg.

After CREI came, we were able to sell directly to the

sangam there was no longer any need to leave the

village at all.

Weighing the oilseeds

before expelling the oil.

Neem oil in storage.

Weighing the oilseeds

before expelling the oil.


16/44


17/44

15

The sangam employs 10 workers at Rs 25 ($0.60) per day.

Women do everything except operate the machine; they

hire a man to do that at Rs 1000 ($23) per month. Beforethe expeller was purchased, they had an unenviable

choice: either seek work as labourers elsewhere or remain

idle, without any income. Now, even after spending about

Rs 3000 ($70) on lubrication and fuel, they earn Rs 5000-

6000 ($116-140) per month profit.

Besides running the expeller, the women have been

empowered in other ways. They have been trained in

marketing, accounting, inventory and sales all this has

given the women a new sense of confidence.

A litre of neem oil fetches Rs 60 ($1.40), its residue (in the white bag) Rs 4 ($0.10) per kg.

Winrocks RamanNageswara with a keymember of thesangam.


18/44

16

Business summary

Business: Oil expeller Enterprise: Kranthi Mahila Sangam

Market: 25-village cluster

Products: Bio-diesel (jatropha, pongamia, neem)

Management: 10 SHG members, 1 mechanic employed at

Rs 30 ($0.70) per day

Location: Kothapally village, Ranga Reddy district

Economics

Cost of expeller: Rs 150,000 ($3500)

Financing: 70% CREI Loan, 30% SHG

Terms: 7.5% interest, 5 years to repay

Annual profit: Rs 60,000 ($1400)

SHG expects to make full repayment in 3-4 years.

Scale-up potential Based on seed availability and other factors, there is clear

potential for installing at least 2-3 expellers in each of Andhra

Pradeshs 27 districts.

This amounts to a potential of 60-70 oil expellers in the state,

and 800-1000 all over India.

This scheme has very high potential under VESI.


19/44

17

3. Cooking with biogas

Y

ara Santhoshas life in

Thadiparthy village usedto be very hard. Once a week

she would trudge for hours to

gather enough firewood to

cook for the next week.

Sometimes she would go with

other women, sometimes

alone. Each time she went out

for wood, the journey was a

little longer, and it was always

an exhausting and painful

experience. Often, she was so

tired that she was unable to doYara cooking her familys

lunch. No smoke, nopollution!any work for a day or two afterward. Occasionally her

weakened condition led to sickness, and having to cook

on a wood fire just aggravated her condition. The indoor

pollution choked her, causing red eyes and coughing fits.

The onlysignificantexpense in settingup a biogas stoveis its installation.The mason in the

photo wasprovided by anenergy-consciousgovernment, whichis fully supportiveof biogas cooking.


20/44

18

On top of everything else,

what she was doing was

illegal. As a conservationmatter, the government

prohibits cooking with wood

fires to preserve trees.

Yaras husband Anjaiah faced

a moral dilemma. As chairman

of Thadiparthy villages Vana

Samrakshna Samathi (VSS),

a forestry conservation group

funded by the Andhra PradeshForest Department, it is his job

to make sure that his fellow

villagers obey the

governments conservation

laws. So allowing his wife to

cook with firewood was a

contradiction. Her unfortunate

plight in having to work so

Stove

Inlet pipeInlet pipe

Stove

The drop pit (top inset), where the dung and watermixture is placed, leads to the domed fermentationtank (pictured on the previous page). A pipe carriesmethane gas from the tank to Yalas kitchen stove, asshown in the photo to the right. The solid waste flowsinto the slurry pit (bottom inset). Slurry is excellentfertilizer, selling for Rs 4/kg ($0.10).


21/44

19

hard to gather the wood

compounded the problem.

Anjaiah was no stranger toadversity. As a child, he was a

bonded labourer, a virtual slave.

Fortunately, he was rescued from

a life of misery by MVF, an NGO

focused on the eradication of child

labour. (MVF is described on page

35.) After completing his

education, he became employed

by MVF, and this relationship ledhim to the CREI Project.

Anjaiah uses the slurry leftover from biogas cooking

as fertilizer in hisvegetable patch withexcellent results, as

shown by the juicy

tomatoes held by hisdaughter.

When Anjaiah explained the plan to Yara, she was

delighted. With assistance in the form of a Rs 4000

($85) loan from CREI, they invested in a biogas unit. Amason was hired by an organization called the Khadi

Village Industries Commission (KVIC), a central

government agency that promotes small-scale cottage

industries. They train and depute masons to install the

units and materials are donated.

After the biogas is burned off as cooking fuel, the solid

Through CREI, Anjaiah found out about biogas. By

mixing cow dung with water, they told him, a biogas

called methane can be produced. Methane is flammable

and burns with a steady blue flame. It is efficient, clean,

safe, and best of all, free. He and Yara would need to

purchase a stove and some pipes, and a masonry pit

would have to be built to hold the dung/water mixture.

Altogether this would cost them about Rs 8000 ($170),

an amount they could ill afford. But the CREI team

said the government, which is keen to promote

alternative energy, would be willing to provide partial

support for the initiative.


22/44

20

Cashing in on a goodthing the sangamwomen know that theGovernment of India hasdecreed that allschoolchildren must begiven a mid-day meal. If

the women can furnish thecooking with biogas, theircosts will be negligible,their income assured andthe children will eat well.

waste, or slurry, flows into a

second pit where it is

collected and sold asfertilizer. Demand is high,

and Anjaiah sells it for Rs 4

($0.10) per kilogram. He

estimates that he and Yara

will earn Rs 1500 ($35) a

year from the slurry.

Yara doesnt have to worry

about faulty valves on an

expensive LP gas cylinder.She just turns the stove on,

lights a match, and dinner is

ready in no time. No indoorpollution from smoke, just a clear blue flame and no more

tedious hikes to gather firewood!

The savings are impressive. An LP gas cylinder costs Rs 300

($7). An average family uses one cylinder per month.

Firewood, if purchased instead of gathered, costs Rs 150($3.50) per month. Using methane, which is absolutely free,

means that Yara will be able to repay the Rs 3000 ($70) loan

for the stove simply by not cutting firewood for three years.

Yaras biogas stove is the first one in Thadiparthy. Her

neighbours were doubtful at first, but now about 20

families have expressed interest in building their own

biogas-producing stoves, and construction on several of

them is under way.

When I started cooking with biogas, says Yara, my

friends were confused. They couldnt find the gas

cylinder. When I showed them how the stove worked,

they couldnt believe it. But now everybody wants one!


23/44

21

Business summary

Project: Biogas digester Client: Household (a former bonded labourer)

Products: Cooking gas, organic fertilizer

Location: Thadiparthy village, Ranga Reddy district

Benefits: Smokeless cooking, replacement of diminishing

supply of wood, sale of fertilizer

Potential market: Supply fuel for state governments mid day

meal schemes for schoolchildren

Economics

Digester cost: Rs 8000 ($170)

Financing: 50% CREI, 10% householder, 40% government

incentive

Interest rate: 7.5% over 5 years Payback Period: 3 years

Annual Profit: Rs 10,000 ($220)

Scale-up potential Over 3 million biogas plants have been built in India so far; the

estimated potential is 15 million.* The potential for installing biogas plants all over India is

significant. The scheme has very high potential under VESI.

* Source: MNES 2004.


24/44

22

A display of the sangamsdried food products.

4. Harnessing the sun

V

enkatamma had a problem. Like most of her

neighbours in Peddathundla village, she grewvegetables and various crops to feed her family. When she

had a few extra tomatoes or chillies, she would take the bus

to the nearest town to earn a bit of cash. But because her

produce ripened at the same time as her neighbours crops,

the market was often glutted. Prices were low and

competition was fierce. After sitting in the hot sun all day, all

she could show for her efforts were a few coins. The worst

part was having to throw away her unsold vegetables. With

no way to preserve them, they rotted quickly.


25/44

23

Its as easy as One, Two, Three!One: the women wash the food items (left).Two: the food is placed on the drying tray (above).Three: a few hours later, the food is ready for storage orsale (below). Venkatamma is second from the right.


26/44

24

Justifiably proud of theirempowerment, the womenkeep careful accounts ofeach transaction.

At a loss as to what to do, she turned to Vasundara, her

self-help group. The group, which was formed in 2000, has

30 members, all Peddathundla village women. Vasundarawas set up as a savings group. Each member contributes

Rs 30 ($0.70) per month. Mostly, the members earn their

money by working as agricultural labourers at about Rs 40

($0.90) per day. The idea was to build up a fund so that

money could be lent with interest. The incentive to join the

group was that members were eligible for lower interest

rates than non-members. But Venkatamma didnt want to

borrow money, she wanted to find a more reliable source

of income.She discussed her problem with Yellama, the group leader,

and other members. There had to be a better way.

There was. The CREI team made the women aware of the

possibility of earning money with a solar dryer. It was an

ideal way of increasing incomes, they said, without

damaging the environment. Because dried food did not

spoil, it could be sold year round. This meant that the


27/44

25

Various foods (here, agreen leafy vegetable,tomatoes and curryleaves) can be dried at thesame time.

vicious cycle that

Venkatamma had found

so maddening would bebroken the need to sell

vegetables when prices

are lowest would be a

thing of the past. Best of

all, solar power is free!

After due consideration,

the group agreed to use

their savings to buy a

solar dryer, and nothingwill ever be the same.

The first step was to

identify the correct dryer.

This took 6 months. Solar dryers are not an off-the-shelf

item in India, and the CREI team, once they understood

what the Vasundara women wanted, had to hire a local

fabricator to build it to specifications. The cost was

Rs 40,000 ($900). The women borrowed half the moneyfrom the CREI Project, which gave them a generous

repayment time of seven years. However, the solar dryer

has been such an unqualified success that the Vasundara

women expect to be able to pay back the full amount in only

two years.

Nothing was left to chance. Every element in the

enterprise was covered in extensive training sessions in

the food drying process, as well as associated matterssuch as hygiene. The women learned about food grade

standards and quality control in drying and packing

operations. Marketing was an important component in the

training too, and links were made to supermarkets that

stock dried food products. Special deals were struck with

college hostels, where the women would provide dry

foods for specific functions. And of course the products


28/44

26

A second CREI-sponsored solar drier is in operation atGaddamallai Guda village. The tomato chips under preparation in

this photo will sell for Rs 100-120 ($2.30-2.80) per kg.

would be sold

regularly in local

markets.The process began

with a participatory

approach, which led

to the identification of

local resources and

skills. Once

renewable energy

technologies were

adopted, businessplans could be

developed, leading to

capacity building.

In solar drying,

different procedures

must be followed for

each commodity. The

most important foodsin Peddathundla are ginger, coriander, chillies, tomatoes and curry

leaves. Although each commodity is different, the average time for

drying food is 9-10 hours. Vasundara employs four of its members

to manage the solar dryer at a daily wage of Rs 30 ($0.70). The

women could make Rs 40 ($0.90) outside, but they much prefer

this arrangement because they dont have to leave the village.

The women make more than Rs 3000 ($70) per month about

Rs 40,000-50,000 ($900-1200) per year. Their revolving fund iscontinually replenished, and their lending business flourishes.

Besides the Vasundara group, two other groups have invested in

solar dryers, and more are sure to follow.

Asked to summarize the impact the solar dryer has had on her life,

Venkatamma has a ready answer: Before, we threw away our

excess vegetables, a total waste, she says. Now, our friend the

sun makes money for us!


29/44

27

Solar-dried products on saleat Mall. The jars contain

curry leaves.

Welcome to our stall get your sun-dried foods here!proclaims the banner.


30/44

28

Business summary

Business: Drying of agro products Enterprise: Vasundhara SHG

Market: Weekly fairs, supermarkets

Products: Ginger, chillies, tomatoes, curry leaves, masala

powder

Management: 4 SHG members hired at Rs 30 ($0.70) per day

Economics

Location: Peddathundla village, Ranga Reddy district

Cost of dryer: Rs 40,000 ($900)

Financing: 50% CREI loan, 50% SHG

Terms: 7.5% interest, 5 year repayment plan


SHG expects to make full repayment in 2-3 years.

Scale-up potential

Of the 500,000 SHGs in Andhra Pradesh, about 200,000 have

obtained credit from banks and micro-lending organizations.*

If only 1% of these SHGs took up these activities, the result

would be 5000 new enterprises.

This scheme has very high potential under VESI.

* Source: National Bank for Agriculture and Rural Development


31/44

29

The Pundu brothers explain theirwork. Left to right: Pundu

Jangaiah; Mr Eeshwar,President of the Jeeva Avarana

committee; Pundu Ramulu.

5. Were farmers, not barbers!

You are like the barber who has no work calling people to

shave their heads!

Why are you planting trees that grow wild in the jungle?

Despite the derision from their neighbours, the Pundu

brothers, Jangaiah and Ramulu, and a few other far-

sighted farmers in Chintula, a small village in Ranga

Reddy district, have been doing something extraordinary.

They have been working hard to bring fields long

considered wasteland into cultivation. What is even more

surprising to their neighbours is the crop they are

cultivating a crop that has traditionally only been used to

mark boundaries between fields, a crop that grows wild in

the jungle. That crop is jatropha.

Growing jatropha as a cash crop is a totally new idea.

Farmers have always known the plant, but not that it was

profitable to grow. It was traditionally used as a lighting oil.

But never before had jatropha been seen as a source of cash.

Largely due to the interventions of the CREI team, more

and more farmers are cultivating this hardy tree. Much of


32/44

30

The Pundus reclaimed this land. Just a few months ago it was consideredcompletely useless.

the emphasis is on cultivating wastelands, areas long

considered incapable of rendering anything profitable.

The point is that jatropha, as well as pongamia, another

oil-bearing seed tree, can be cultivated with ease in

marginal lands. Both are resistant to drought, and both

will grow on poor soils. Although the oil produced from

both species is in demand for a variety of uses, their

main use is for biodiesel production, an important priority

for many of Indias state governments.

But because both trees take a long time to reach maturity

jatropha takes about two years, pongamia four part of


33/44

31

Above: Jatropha is traditionally used to markboundaries. Inset: mature jatropha oilseeds

ready for collecting. Below: Pundu planting ajatropha tree.

the strategy is to sustain

farmers interest by

promoting intercrops thatcommand high demand in

the market. Legume

crops, because they

increase soil fertility, are

particularly favoured. The

legume best suited to

conditions in Chintula is horse gram.

Although not as prized as pigeonpea, the

favourite pulse crop for making dhalinsouthern India, horse gram grows well in

marginal lands, yields 7-8 quintals/hectare

and sells for Rs 6 ($0.14) per kilogram. It

is mostly used to make rasam, a soup.

Another interim crop is henna, which is

used to decorate the feet and hands of

women on auspicious occasions,

especially brides. Henna is a perennialcrop that commands a good price in the

market. CREIs thinking was that the

promise of immediate income from horse

gram and henna would give the farmersenough confidence to prepare the land for long-term

gain from jatropha and pongamia. The Pungus only

earned about Rs 2000 ($47) in additional income

from their horse gram crop, but the thing to consider

is that previously unused land is now generatingcash.

The farmers contributed 50% of the cost for land

preparation, mostly through labour. They borrowed

Rs 13,000 ($300)/hectare from CREI at 7.5% interest

over 6 years. The jatropha, which was planted 6

months ago, will not be ready for harvest for another

18 months.


34/44


35/44

33

Forgotten crops: jatropha (left) and pongamia(right), if cultivated properly, can provide

income from marginal lands.

Planting jatropha as anactivity for schoolchildrenis promoted as part of the

CREI Project.

Jatropha and pongamiaplants are raised in thisnursery in Ibrahimpatnamfor cultivation bybeneficiaries of the CREIProject.

The oil produced from both jatropha

and pongamia can also be used as

biodiesel to fuel standing engines.Indian President Abdul Kalam, a big

promoter of renewable energy, has

indicated that 200,000 hectares will

be made available over the next

year by the government of Andhra

Pradesh for cultivation of crops that

provide biodiesel. Chintula farmers

like the Pundus are listening. They,

and nine other farmers like them,are doing their part.


36/44

34

Summary

Business: Biodiesel plantation Model: Intercropping on 6 hectares of wasteland (jatropha with

legumes and henna)

Lead time: 24 months

Management: A two-brother team and the Environment

Committee

Location: Chintula village, Ranga Reddy district

Cost economics (per hectare)

Financing: Rs 13,000 ($300) from CREI


Current profit: Rs 5,000 ($110)

Expected profit: Rs 20,000 ($450)

Potential: Thousands of hectares of wasteland put to use for

economic benefit of resource-poor people

Scale-up potential

Of the 94 million hectares of wastelands in India, 7.6 million

are in Andhra Pradesh.*

If only 10% of these lands are brought under rainfed jatrophacultivation, the result would be 10 million hectares in India and

800,000 in Andhra Pradesh.

This scheme has very high potential under VESI because the

oilseeds can be converted into biodiesel, thus meeting all the

villages energy needs.

* Source: Ministry of Agriculture 2004.


37/44

35

6. Cleaner cooking, healthier girls

The M Venkatarangaiya Foundation (MVF) is a

Hyderabad-based NGO dedicated to the eradication ofchild labour. MVF believes that all children should be in

school, and that a child not in school is a child in labour. In

pursuit of its lofty goals, MVF has developed an extensive

network throughout rural Andhra Pradesh just the sort of

network needed by Winrock to launch its clean energy

business models through the CREI project. The MVF-

Winrock collaboration was a match made in heaven, and

although they had different targets, they were able to

share their resources and knowledge to mutual

advantage.

One particular initiative has brought the two

organizations even closer together. MVF runs a

In its efforts to make schoolchildren out of bonded labourers, MVF has developed anextensive network in the villages of Andhra Pradesh. Their intimate involvement in the livesof rural people makes them ideally suited for identifying appropriate local organizations thatcan adopt RE technologies.


38/44

36

residential hostel for

underprivileged and

exploited girls in thevillage of Hayathnagar, in

Ranga Reddy district. It is

called the MSK Girls

Hostel. Funds to run the

hostel come partly from

the government of Andhra

Pradesh and partly from

other sources. The hostel

is a bridge course school;it brings girls who have

had no schooling at all up

to primary school level so

that they can then be

placed in mainstream

schools. Apart from quality education, the hostel employs

a cook to provide three meals a day to between 50 and

60 girls.

Before the CREI intervention, LPG (bottled gas) was used

for all cooking needs. The gas was bought from Hyderabad

MVF hostels are typifiedby artwork that decoratesas well as educates.

Cooking with biomassmeans that fuel is

abundant and free thatsenough to put smiles on

anyones face.


39/44

37

at a cost of Rs 300 ($7)

for a cylinder. Monthly

consumption amountedto seven cylinders at

an average cost of

Rs 2100 ($48).

Moreover, the cook,

who had to commute to

the city (100 km round

trip) at least twice a

week, faced enormous

difficulties transportingthe cylinders.

The CREI projects intervention of installing a biomass

stove changed everything. The stove, which burns

material that would otherwise have gone to waste, needs

only 4 kg of wastewood/biomass to meet the hostels

daily cooking needs. It costs Rs 6000 ($140).

Monthly expenditure has reduced to Rs 500 ($12), a

quarter of the previous cost. These savings are hugelyimportant for a hostel accustomed to operating on a

shoestring budget. On top of all the other advantages, the

stove daily produces a kilogram of charcoal as residue,

which can be used as additional fuel. The quality of food is

better and meals are cooked in less than half the time using

LPG. Before, it took 2 hours; now the job can be done in

only 45 minutes. The 20 kg of rice that forms the staple part

of every meal can be prepared in only 20 minutes in the

new biomass stove, while the requisite 5 kg of pulses takeonly 25 minutes to cook. The biomass stove is very easy to

use and operate. It produces clean energy and no smoke,

burning with a blue flame just like LPG.

Hostel staff were trained in the use of the biomass stove

by Winrock personnel. Everyone concerned is very

happy especially the cook who no longer has to

An MVF staff memberexplains the advantages of

biomass cooking torepresentatives of several

self-help groups. The insetshows the stove itself.


40/44

38

undertake arduous travel and transportation headaches.

Says hostel warden Prescilla, It is amazing what

technology has done for us. We used to spend four timesas much on cooking as we do now. For us, this amounts

to substantial savings and comfort as we can avoid all

the travel and transportation challenges. We are able to

better utilize our time now by spending more time with

the children.

Thousands of SHGs are involved in providing food to

schools as part of the Mid Day Meal Scheme of the

government of Andhra Pradesh, spending as much asRs 1750 ($40) per month on firewood and LPG. While

the firewood option is a major health and environmental

hazard, LPG is expensive and logistically unwieldy.

Because biomass stoves have the potential to alleviate

all these problems, they are the ideal solution.

Many SHGs involved in meal schemes have already

No one is happier aboutbiomass cooking than thecook, who no longer hasto inhale smoke or makelong and complicatedforays to the city to collectgas cylinders.

Schools are perfect places for the transfer of technology.

If parents can see that their children are healthier as aresult of clean energy, they are likely to adopt thetechnology themselves.


41/44

39

visited and received training on the biomass stove at the MSK

hostel, which has won the reputation as a ground-breaker. The

example they have shown has convinced other groups to adoptthe technology, thus saving money and improving their health.

The productive application of renewable energy technologies

directly affects livelihood improvement. The SHG involved in the

MSK Hostel, for example, earns about Rs 15,000 ($350) per

year. Best of all, the problem of indoor air pollution caused by

inhaling the smoke from wood fires indoors, a hazard that

especially affects women and children in rural India, assuming

the technology is widely adopted, will soon be but a bad

memory.

Us too! The residents of boys hostels are as enthusiastic about the advantages of biomasscooking as the girls at MSK.


42/44

40

Business summary

Business:Mid day meals scheme using a biomass stove Enterprise: MSK Girls Hostel

Management: Hostel warden and cook

Location: Hayathnagar, Ranga Reddy district

Economics

Cost of stove: Rs 6000 ($140)

Financing: 50% CREI loan, 50% hostel



Scale-up potential

Of the 867,000 schools in India covered by the Mid Day Meals

Programme, Andhra Pradesh alone has 65,000 shcools.* The potential for scaling up is tremendous. Almost every group

involved in this scheme uses firewood and all are desperate to

cut costs.

The scheme has very high potential under VESI.

* Source: National Program of Nutritional Support to Primary

Education 2004.


43/44

Photo credits

MVF: pp 17 (lower), 20, 33 (middle and lower), 35, 36 (both), 38 (lower), 39.

WII: p 33 (upper)

All other photos by the author.


44/44

Head Office

1, Navjeevan Vihar, New Delhi 110 017, India+91 11 2669 3868

Project Office

E-24, Vikram Puri, Secunderabad 500 009

Andhra Pradesh India

crei booklet

Documents