SANITATION

EMERGENCY IN INDIA

Report by students of PGP Class of 2014,

Indian School of Business:

1. Srinayana Goswami

2. Saumya Deep Datta

3. Nupur Goel

4. Ritesh Chopra

5. Ananya Guha

WHY SANITATION IS A CAUSE OF CONCERNS

HEALTH CARE

•Open defectation causes

pollution of surface and

ground water.

•88% of diarrhea

deaths are due to lack of

sanitation.

•Defecation in farm

lands contaminates the

farm produce – impacts a

vast part of the

population than those of

the village alone.

SOCIAL

•Loss of dignity and hardships for women

•Threat to security of women when they go to secluded places to relieve

themselves.

•At several places, although sanitation infrastructure exists, it is not utilized

due to poor upkeep, lack of running water or education .

•High dropout from schools (esp. girls after they reach puberty).

ECONOMIC

•Significant loss of

productivity due to

illness.

•Cannot afford

healthcare facilities as

most severely impacted

are daily wage laborers.

•The opportunity cost of

falling ill is too high for a

poor Indian.

•Loss of tourism : India

perceived as unhygienic.

60% of those practicing open

defecation live in India due to:

Lack of infrastructure.

Lack of running water.

Extreme poverty.

Lack of education

Progress made by India in drinking water &

sanitation:

http://www.youtube.com/watch?v=5ERSVtdN5dA http://www.youtube.com/watch?v=jLEDtidnru4

PROBLEM STATEMENT

While it is common knowledge that water crisis in India is due to depleting water reserves. But few are

aware of the fact that: Unavailability of safe drinking water is a bigger problem as groundwater gets

contaminated by heavy metals and Industrial waste and pollutants from open defecation.

VICIOUS SPIRAL

Need to source water from a

distant reservoir

Cost of piping/supply

increases manifold (30-

50%)

Huge network- poorly maintained

30-50% water gets wasted in

leakages.

Surface/ ground water gets

contaminated

The nation has lesser

and costlier water

supply.

Poor cannot afford, continue

using contaminated

water

WATER

CRISIS : AN

OUTCOME

OF

SANITATION

ISSUES

SCOPE DEFINED FOR THE

PURPOSE OF OUR STUDY:

While the problem of poor sanitation is

rampant across India, the urban and semi

urban areas still have a fair share of the

sanitation infrastructure and healthcare

amenities in comparison to their rural

brethren. (60% of urban poor have

sanitation facilities as against 24% rural )

But the rural India is grappling with this

issue more so because there is very

limited penetration of sanitation

facilities, most of them are ignorant

about the perils that entail open

defecation and even the healthcare

resources are scant.

Through this presentation, we attempt

to provide a sustainable solution to

address the problem of rural sanitation,

while ensuring there is complete buy in

of the model by the target community.

PROPOSED SOLUTION

PROPOSED SOLUTION • As mentioned in earlier slides, the problem of sanitation in rural India is grave and needs to be

treated on par with a national emergency

• We propose a “Swatch aur Ujjwal Bharat” model. This model would go a long way in

making villages self sustainable, foster growth and education and usher prosperity.

• The model requires partnering with NGOs which would then carve out self help groups in each

village. The project would be funded by CSR initiatives/ priority sector lending and individual

donations(to be exempted under 80G).

• This group would be responsible for sensitizing the villagers about importance of sanitation. They

would then mobilize people to lend a hand in construction of common toilets in the village. Govt.

can also link NREGA with this to dispel any public apprehensions about the credibility of the project

in addition to generating employment as per its mandate. (Since people may suspect the NGOs to be

dubious and lending Govt. name would build trust)

• The toilets would have a block which would collect the human waste and that would be transported

to the biomass plant which would be constructed as a part of the initiative.

• The plants would be constructed in a manner such that they can collect waste and generate and

supply electricity to multiple villages. Power transmission would be done using government erected

pillars and wiring done with the help of locals (diagrammatic view of the model in next slide).

• This electricity would be sold commercially in the village at a nominal price of Rs. 100 per

household (would support one CFL, one ceiling fan and a mobile charging point).

• This would generate adequate revenues to not just meet operating expenses, but will also build a

corpus which can be subsequently used for scaling up and for other welfare initiatives. (Revenue

projections in succeeding slides)

SEED FUNDING FROM INDIVIDUALS/ CSR INITATIVES/ PRIORITY LENDING

NON GOVT. ORGANISATION/ PRIVATE PARTIES AT A MANDAL/DIST. LEVEL

SELF HELP GROUPS FOR EACH VILLAGE

VILLAGES WITH TOILETS CONSTRUCTED BY THEMSELVES- ELECTRIFIED BY BIOMASS PLANT

IMPLEMENTATION

IMPLEMENTATION IMPLEMENTATION

Steps Stakeholders Existing Government Infra Financial resources

Govt. will launch a marketing campaign for the program

following which based on applications Rural Development

Department will choose an appropriate NGO based on location

of the village.

Government

Department,

NGO

Central Rural Sanitation

Program (CSRP)

Marketing spend

Get buy-in from corporate CSR for the initial seed fund Corporate , NGO,

Individual

Donors

80G – Tax benefits to

donors/Corporate, CSR

Compliance under

companies act

Microfinance,

Individual

donors,

Corporate

NGO connects with the village and sets up SHG(around 20

people) (2 Weeks)

NGO, Panchayat

, Community

Local Health Dept. ,

School, Existing

Sanitation Infra

Initial stage: (3 weeks)

•educate the community on benefits of sanitation

•communicate the proposed solution and give examples of

villages where it has been successfully implemented.

•educate about the additional benefits it will entail such as

electrification, employment generation

NGO,

Community,

SHG

Education

material, Training

costs, NGO

Officials

expenses

Get local community involved in the

construction/implementation. Use local materials for

construction to ensure sustainability

(2 weeks)

NGO,

Community,

SHG

Existing Sanitation &

Govt. constructed power

infra (pillars, wiring etc),

Concessional land,

NREGA

Construction

costs (refer slide

on sustainability)

Once implemented, NGO will train SHG and leave the day to

day operations to the community. Till the model becomes

sustainable, NGO’s have to monitor once every 2 weeks.

NGO,

Community,

SHG

NREGA- to provide

wages to workers

Operational Costs

(refer slide on

sustainability)

Provide full-time employment to 3-5 villagers to maintain the

plant and toilets. SHG will monitor and provide feedback.

Community,

SHG

NREGA- to provide

wages to workers

Operational Costs

ADVANTAGES OF PROPOSED

SOLUTION(4I’S FRAMEWORK)

• NGO’s are involved only in initial period following which community takes over.

• Involvement from corporations help sourcing of funds.

• Large FMCG groups can provide toilet cleaning agents and soaps as a part of CSR.Eg. Sustainable living programme by Unilever.

Role of Institutions

• Electricity generated for the village.

• Permanent Employment for villagers.

• Revenue from power generation can be used to further scale up and provide better solutions

Incentives

• Use social network to keep donors and stakeholders updated about progress

• Progress made in a particular community can be used as a model for other villages

Information

• During the initial phase NGO’s will be involved in educating the villagers about sanitation and only once there this complete buy-in, they will go ahead with setting up the infrastructure.

Inclination

IMPACT

IMPACT ANALYSIS

• Diarrhea is responsible for 13% of child deaths in India i.e. more than

600 kids dying everyday. A great loss to country of possibly 600 more

Sachins, Sainas or Kalams. Our solution looks to bring the number down

significantly

• After proving the solution in 5-6 parallel setups of 500 house-holds

(initial investment 1 cr) and incorporating lessons, the solution can be

scaled to 1000 such setups over the next 3 years. Impacting 5,00,000

households and more than 1 million children.

• The solution has a potential of generating operating profit in excess of 1

lakh per setup. This can be used for maintenance and further growth.

• On average, the system generates employment (part-time/full-time) for

50 people for every 500 house-holds, lifting the household income and

social status.

• The solution addresses the power situation of the villages as well, and

leverages existing infrastructure provided by government.

MONITORING

• The self-help groups will monitor the following parameters

– Usage and Acceptance rate of the Sanitation facilities.

– Reported incidents of diarrhea

– Child mortality rate

– Units of Electricity provided to households

– The cleanliness at the sanitation facilities

• Data on the Key Performance Indicators will be collected from self-help groups and handed over to central team.

• Data Analytics based on these KPIs will be published for each village and on aggregate level on our public website.

• CSR initiatives, micro-loans, donations will be given an option to choose the village they would like to help. This would create a sense of ownership and ensure sustained interest.

• Regular reporting will be sent to the lenders, investors with analytics to inform them of the impact their funds are generating in the community.

SCALABILITY & SUSTAINABILTY INVESTMENT FOR POWER PLANT SETUP

Initial Investment Number Total Investment (INR) Power Generated Monthly (KW)

Construction of toilets 2000 20 40,000 -

Power plant 65000 per plant 25 1,625,000 7200

REVENUE FROM POWER PLANT

Number of Households to which electricity can be supplied

253

Electricity Rate (INR/KW) 4

Revenue from One Household 100

Total Revenue 25,333

Cost 17,000

Profit 8,333

•The model requires a seed capital of around INR 16.5 Lakhs. This would cover the costs of installation of toilets and the biomass plant. •Once installed, the electricity generated will be sold commercially in the village at a nominal cost of Rs. 100 per month. •The revenue would be utilized for maintenance, administrative salaries and the surplus would be used to build a corpus for scaling up or other initiatives

A basic feasibility and sensitivity analysis and assumptions used in modelling can be studied in the appendix

CHALLENGES

PRACTICAL CHALLENGES

SOCIAL:

•Constant monitoring and feedback mechanism post

implementation to help villagers naturalize with the

process.

•The initiative depends on complete buy-in from the

village community. Breaking the caste barrier: People of

higher caste averse to sharing space with “harijans” and

bringing harijans at par with themselves.

•Administration of the biogas plant.

ECONOMIC

•With enormous funding flowing into NGOs, there is a

high risk of misappropriation/ mismanagement of funds.

•The toilets would require supply of water

•Pilferage of electricity from the transmission lines can

jeopardize the project.

•Upkeep and maintenance is a must to prevent outbreak of

diseases.

POLITICAL

•Need support from the state govt and the local

administration (DM/ Panchayat).

•Concessional land allotment for biogas plant.

•Marketing the initiative to source seed fund.

•This can be mitigated only by having a very

empowered self help group which can break the

cultural barriers, display effectively the merits

of the initiative to the community and have an

impeccable integrity to run the plant.

•Also once the village community takes

ownership of the programme, the administation

and cultural assimilation will happen

seamlessly.

•The local problems regarding water can be

resolved by using recycled water or water from

local streams. Since waste blocks would be

regularly removed and cleared, the water

requirement wouldn’t be too high.

•When there is a complete community buy in,

the people would themselves police pilferage

and take ownership for upkeep

•Regular audit and monitoring by contributors

of seed fund can ensure healthy functioning of

NGO.

•If this is incorporated by the political parties in

their agenda for 2014 elections, not only can they

strike a chord with the masses, but parties across

the spectrum would stay connected with the

program and nurture it to grow.

APPENDIX APPENDIX

Appendix 1: Assumptions for

Calculation

Appendix 2: Revenue Calculation

Appendix 3: Cost Breakdown Structure

Appendix 4: Breakeven Demand for

Electricity Calculation

Appendix 5: Breakeven Electricity

Rate Calculation