This document discusses India's sanitation emergency and proposes a solution. It notes that open defecation causes water pollution and disease. It then proposes a "Swachh aur Ujjwal Bharat" model where non-profits form village groups to build toilets and biomass plants producing electricity from waste. This would provide power for a nominal fee, funding maintenance and expansion while improving lives.

1. 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

2. 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

3. PROBLEM STATEMENT

4. 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.

5. PROPOSED SOLUTION

6. 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)

7. 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

8. IMPLEMENTATION

9. 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

10. 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

11. IMPACT

12. 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.

13. 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.

14. 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

15. CHALLENGES

16. 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.

17. APPENDIXAPPENDIX

18. Appendix 1: Assumptions for
Calculation

19. Appendix 2: Revenue Calculation

20. Appendix 3: Cost Breakdown Structure

21. Appendix 4: Breakeven Demand for
Electricity Calculation

22. Appendix 5: Breakeven Electricity
Rate Calculation