Start of the first batch of projects

Dr. Hari Sharan, Co-Chairman, DESI Power.

 June 2007

I. The 100 Village EmPower Partnership Program:

The project purpose is to empower the villagers comprehensively: self-sustaining local supplies of utilities (electricity, water, lighting, etc.); capacity building with focus on women for total management of the local activities; creating non-agriculture local jobs; lowering pollution and reducing Greenhouse Gas Emissions. The socio-economic development of villages is achieved through the provision of efficient electricity and energy services and job creation in villages jointly with the villagers, especially women.

Establishing support structures such as the DESI_MANTRA training centres and tools for selecting and financing village level micro-enterprises through intermediary agreements with banks such as the State Bank of India and joint research with external institutes and university teams are the other elements of the integrated approach to achieve sustainable rural development driven by clean energy sources.

The 1st four projects (including up-gradation of existing Baharbari EmPP) are in its construction phase. Civil works at the site and the testing of the gasifiers on the Testbed have been completed for the first 2 plants.

II. Recent Happenings:

DESI Power Foundation (a trust) has been established under Section 20 of the Indian Trust Act 1882 to promote mainly the following activates:

a. Promotion of Power and Energy projects and Employment-generation activities.

b. Facilitating establishment and/or management of

   i) DESI_MANTRA / Management training centres

   ii) Cluster Centres and Extension Services

   iii) Organisations for access to pooled resources.

   iv) Organisation for promoting pooled marketing and net-working.

   v) Business counselling and incubation centres.

   vi) Communication, computer services and email kiosks.

   vii) Any other initiatives as needed from time to time.

c. Facilitation in establishment and management of

   i) Self-Help Group Promotion Institutions.

   ii) Self-Help Groups, especially for women.

  iii) Self-Governance for conservation and development of community resources including intellectual property rights.

d. Promotion of education and research.

e. Promotion of research, adaptation, and promotion and transfer of technology for rural sectors.

A team of Bihar State Cooperative department (Headed by Register, Bihar State Cooperative) visited DESI Power’s Baharbari project site and appreciated the work of the local cooperative BOVS.

Mr. Onur Ozlu of Development Marketplace, Strategy and Integrated Risk Management Group, The World Bank visited DESI Power’s project site in Bihar from 4th to 6th of June 2007. He interacted with stockholders of EmPower Partnership projects and reviewed the progress in the villages.

State Bank of India (SBI) is working very closely with DESI Power in Araria district and providing special training to 21 men and women members of DESI Power and its partners (women of DESI_MANTRA, women & men member of BOVS & GRID) for developing, executing SHGs and educating them to run SHGs in this region successfully. This two days’ training is starting from 29th of June 2007. SBI has offered to DESI Power’s partners like BOVS, GRID and DESI Power Foundation to become a partner of SBI for executing their rural projects (like SHG’s, micro finance etc.). DESI Power and its partners are working on this proposal.

III. Financing of the First batch Projects:

Financial closure has been completed and the advances as per the project milestones have been received for the first 4 projects from multiples sources of funds. Sources of funds for 4 projects are local and DESI Power equity, World Bank DM2006 grant, CERs, MNES (Indian Govt. subsidy for gas engine) subsidy and bank loan from ICICI Bank.

IV. Status of the First Batch of EmPP Plants:

Four projects are under construction including the up gradation of the exiting project EmPP Baharbari.

Gaiyari- I & II Plants (New Projects):

• Civil work completed.

• Gasifiers have been tested in the factory and are ready for dispatch. 

• Gas engines from Cummins are also about to be dispatched.

• Erection & commissioning of the plant will be finished in the month of July 2007and commercial operation will start form the month of August 2007.

• Power Purchase Agreement (PPA) has been signed between DPK and the members of GRID (consumers).

Baharbari Plant (Strengthening of the existing plant):

• POA for up-gradation is completed.

• New gas engine will be installed.

• Load (demand) of the plant is going to be increased by, e.g., the installation of new irrigation pumps, supply of electricity to the market place and the neighbouring cluster of houses.

• In the month of September 2007, the up-gradation will be over and operation will be restarted.

Vebhra Plant (New Project): ·

• List of MEs for this village has been prepared.

• List of potential stakeholders in Vebhra is prepared.

• Construction of Vebhra plant is about to start from the month of September 2007.

V. Status of CDM:

DESI Power’s 100 Village EmPower Partnership Project has been validated successfully under CDM project and now the project is under the process of registration. The validation report is with DESI Power.

Proposed CDM project title: "Bundle of 100 village biomass gasifier based power plants totalling 5.15 MW for Decentralised Energy Systems India Pvt. Ltd. in Bihar" Ref No. 00001187

VI. Development and Financing of the Next Batch of EmPower Partnership Projects in Twenty New Villages:

Twenty Villages have been identified for implementing the next batch of EmPower Partnership projects. DESI Power needs new investors and is negotiating with an Indian Trust and a Swiss fund for equity participation. Options for selling CERs are already in place and assurances have been obtained from ICICI and SBI for bank loans for the power plants and micro-enterprises.

VII. DESI Power Management Training Centre for Rural  Women (DESI_MANTRA):

All the trainees of 100 Village Program, trained by DESI_MANTRA are doing very well. Now they have become full time employees of DESI Power. After looking at the success and social status of the 1st batch of DESI_MANTRA women trained by DESI_MANTRA, many other local rural women have shown an interest to get trained in DESI_MANTRA. The second batch of DESI_MANTRA is expected to start its training from the month of August 2007.

DESI_MANTRA women have initiated a Shelf Help Group in the village Gaiyari. This is the first ever SHG of this village.

DESI Power needs new grants for DESI_MANTRA to empower more rural women in Araria district. A detail business plan of DESI_MANTRA is under preparation.

DESI_MANTRA girls interacting with women of Gaiyari for forming SHG	Meeting of women of Gaiyari for the formation of SHG