Technology and Action for Rural Advancement (TARA)

Scaling-up of Service Delivery Models to meet Basic Needs in the Green Economy

Shrashtant Patara

THEMATIC Workshop18th PEP Meeting, May 14 2013

Functions of a “Market Maker” Initiative

M&S EntreprisesM&S Entreprises

Local Communities

Local Communities

Incubation Eco-system

Dev

elop

men

t Alte

rnati

ves

InnovationAggregatorsAggregators

Impact at scale

Implementation

Influence

BusinessesBusinesses

Investors/DonorInvestors/Donor

GovernmentsGovernments

TARA

MARKETPROJECTS

Development Alternatives

Innovation

Communication

Policy Res.

Implementation

Incubation

TARA

Implementation

TARAhaat

TARA Machines (B2B)

TARAenviro/New co.(B2C)

DESI Power

TBRTIMEDF

TNK

DEVELOPMENT ALTERNATIVES GROUP

Business Affiliates

“Not-for-Profit” “Not-for-Profit” “Pvt. Ltd.”

MARKET

SPEED

85%

TARA + Prog. Parts

+ Co.’s

15%

• Bundelkhand• Tikamgarh, Datia (M.P)• Jhansi (U.P)

TBL•Social•Economic•Environmental

SMART POWER FOR ENVIRONMENTALLY SOUND ECONOMIC DEVELOPMENT

“SPEED”

Problem Addressed

400 million without electricity

Majority in Rural areas

18,000 villages are off grid

Goal Assured Energy Services

Poverty Removal and Economic Development Through Business Investment

Opportunity to Leapfrog

Telecom towersRural Electrification

Lighting alone:

$ 3 billion annually

300,000 Telecom Towers

Fastest Growing Infrastructure with

Skyrocketing Diesel Costs

Need for symbiotic working: SPEED as Enabler

SPEED – An Integrated Solution

Mobile Phone Base StationMicro Utility

ProducePower

Distribute Power

Host VillagesTower PowerManagement

System

Tower PowerManagement

System

CommunityDistribution

System• Marketing• Collections

CommunityDistribution

System• Marketing• Collections

Candidate TechnologiesCandidate Technologies

Public Usestreet lighting, schools, clinics Public Usestreet lighting, schools, clinics

Microenterprise battery charging, agri-processing, manufacturing, irrigation

Microenterprise battery charging, agri-processing, manufacturing, irrigation

Household Uselighting, communicationsHousehold Uselighting, communications

BiomassGasificationBiomassGasification

Solar PVSolar PV

BiogasBiogas

Backup GensetBackup Genset

Wind TurbineWind Turbine

• Steady load• 99.99% uptime

• Steady load• 99.99% uptime

• Varying load• Varying load

TowerEquipment

TowerEquipment

Investability and bankability enhancements for attracting private enterprise and private capital in Rural

Electrification with load optimization

SPEED is different ….Ensuring financing

solutions

Building local capacities to

sustain projects

Assist & Influence on creating right

policy environment

Demand assurance through1.Telecom 2.Enterprises3.Households

Providing 360 degree assistance

Assisting in finding appropriate technology & technology suppliers

SPEED in action …

• Innovation around anchor load …Selling water instead of electricity

Bara Plant, Araria, Bihar

• Urja Gram – Rural Enterprise Zone… enterprise zone in plant campus

Diyara Rasoolpur, Saran, Bihar

• Pre-paid smart metering … changing user behavior - pre-paid electricity

Mubarakganj, Faizabad, U.P.

stimulate large-scale deployment and investment in rural energy services

Multi-stakeholder Action

• Industry Players - engineering transition to green energy & sustainable village projects … tap high growth market opportunity

• Policy Makers, Influencers & Strategists – creating favorable policy & regulatory environment… drive private participation for value addition to local resources & rural communities

• Financial Institutions – establishing specialized investment vehicles managing eco-system investment… tap a global opportunity providing high financial RoI with socio-environmental returns

TARA

Marketing Plan for 2011 ~ 12Aqua+Technology to Market Initiative

Commercialization: Scaling up of

Aqua+ business

Innovation:Product / Service

Development

Incubation: Set up delivery

channels and develop business models

Product Development

Establish delivery channels for Aqua+

Design Social Marketing toolkit

Develop business model for Aqua+

Sell 1 million units of Aqua+

TARA

Marketing Plan for 2011 ~ 12Aqua+

Strategy for Growth

Cons

umer

TARAChannel Partner

Direct Sales

Retail Sales

Delivery Channel for Aqua+

Events / Demos

D2D Campaign

Wall Paintings

TARAChannel Partner

Social Marketing for Aqua+

TARA

Marketing Plan for 2011 ~ 12Aqua+

Scalability

• Sold 100,000 bottles as pilot and established product acceptability

Because the market exists…..

…. Power of enterprise will take service delivery to scale!

• Challenge: Make the initiative self-sustaining by scaling up operations

167 million families in Indian BoP1

= 20 million bottles per year

or Rs 600 Million in revenue per year

1% market shareX

1 bottle per monthX

12 months per yearX

1 McKinsey Global Institute; Global Initiative; EIU

Best in Class Clean Technology

Grants

Sustainable Development B-Corporation[Implementing Authority / Delivery Mechanism]

Consortium / Shareholder Structure

Sustainable Development Portfolio

Integrated Systems / Public Goods / Networks

Loans(Zero/Low-Interest)

5-10% Return

10-15% Return

+15% Return

SocialPrograms

Public Private [Equity/Debt]

Concessional Finance

National/Local Capital National/Local Capital

Direct Access Social Programs

BOP Markets/Business

Sponsor

Financial Institution / Custodian of Capital

Asset Manager

Portfolio Bundling Strategy

Technology and Action for Rural Advancement (TARA)

Thank You!