Report of Work Done, Irade-Sewa-Ies 05 - 4

RURAL MICROENTERPRISE MODEL FOR BIO-FUEL EXTRACTION IN INDIA

at Bawal (Haryana), India

Objectives Introduction The specific objectives of the project are: The local level biomass based strategies are actively . To formulate microenterprise model being discussed in the recent years in India at the for bio-mass based energy system at ministerial level especially in the Planning commission, village level Ministry of Non-conventional Sources, Ministry of . To extract fuel from oil seeds that Rural development and Ministry of Human resources provide alternative fuels in rural areas (Employment generation Schemes). India has great . To provide sustainable livelihood potential for production of bio-fuels from non-edible options for women at village level oil seeds. The annual estimated potential is about 20 . To develop enterprise to process million tonnes per annum. Wild crops cultivated in the locally available jatropha and other westland also form a source of biodiesel production in oil-seeds India and according to the Economic Survey of . To identify current activities in Government of India, out of the cultivated land area, biomass based strategies for about 175 million hectares are classified as waste and extraction, utilization and degraded land. Thus, given a demand-based market, commercialization of oil India can easily tap its potential and produce biofuel in Unique Features a large scale. It is expected that the plantation in 4 million hectares in phases will generate 127.6 million The Jatropha plantation in nearly 50 hectares person days of work. In addition, the seed collection of land in 3 adjoining villages is nearing will provide sustainable employment to the tune of 8 maturity. It is right time to introduce million person days or 1.22 million person years and extraction facility so that people can see the primary processing, oil esterification, transport etc. will benefits of the plantation with appropriate size create additional jobs. capacity. The oil extracted in this unit will be sold at economic price worked out jointly. Background  This system will be managed by men and women who will get livelihood from Wuppertal Institute for Climate, Environment and bringing oil-seeds. Energy (WISION) through its Sustainable Energy Project Support (SEPS) has given financial support for one year (May 2006-07) to IRADe to implement this project. This project attempts to harness locally available Jatropha plantation to generate bio-fuel in the Bawal Tehsil (area constituting a revenue district) of Rewari District in Haryana state. The project will establish microenterprise model for locally available bio-fuel extraction. It will provide sustainable livelihood as well demonstrate the benefits of the model on socio- economic conditions of the community. Further, it will lead to increased access to alternative fuel at local  Replicable in Haryana state as well as in village level. The project will reduce the dependence on India. fossil fuel, increase of green cover area and encourage  Involves local community. community towards social forestry.  Cooperative structure in the model  A model for post implementation activity for the  Positive ecological benefits in terms of bio-fuel plantation programme of Government of lending support to biodiversity, especially India at rural level. since degraded lands are involved In India, government conceives, finances, executes and Biofuels also help the environment because monitors their programmes. The government has the plants grown to make these fuels take formulated a plan for bio-fuels with only techno- greenhouse gases such as carbon dioxide out economic details. It has ownership of its own projects. of the air and fix it in their roots, stems and Community initiative is the missing link in the leaves. Much of this carbon dioxide gets Government program. The project submitted here is a sequestered in the soil, reducing the overall socio-economic-experiment. With one time initial grant level of carbon dioxide in the atmosphere. towards capital costs, the village community will manage their own facilites. Here, the assets belong to Project activities the community. The enterprise model proposed here may serve as a demonstration for village level  Pilot implementation and dissemination of implementation for large-scale biofuel program model with one extraction unit for three currently under discussion within the government. villages of Haryana State Economic Feasibility  Network of private sectors, NGO’s, The stakeholders engaged in bio-fuel expected cost of extracted oil in this project would be cultivation Rupees 18-20 per litre. However, the price of  Organise workshops for local commercially available bio-diesel is presently Rupees stakeholders, NGO’s, Private sectors and 33/litre. With recent increase in oil prices, it is essential Government agencies to look for substitutes of fossil fuels for both economic  Develop pay-back mechanisms and and environmental benefits to the country. This model replicability of the installation with for bio-fuel extraction will disseminate technology and involvement of micro-credits and other provide better energy services at the village level. financial institution Yes, the project is economically feasible as the local resources are used and the community will be responsible for the assets, operation, management and end users of the energy services available by the use of bio-fuel. The cooperative mechanism will ensure that the collection/procurement and marketing of the bio- fuels is economic as own labour is not fully charged.

 The Environmental benefits use of bio-fuel avoids fossil fuel use and hence avoids CO²/CO in atmosphere  It is a promising alternative fuels source for future  Substantial reduction of unburned hydrocarbons, Partners involved: carbon monoxide and particulate matter A) Village Panchayat: Local Self Governing  Decrease the solid carbon fraction of particulate Body matter The rural local governments in India are called  Increase in the green cover as result of plantations Panchayats. The Village panchayat would would check soil erosion and retain moisture and ensure cooperation for extraction unit and all soil nutrients. needed support for establishing the unit. In the project, the local community would own the assets and will be responsible for management of day-to- manage their entire facilities. day activities. Training programme is B) Regional Research Station (RRS) of Chaudhary proposed for committee to equip them run the Charan Sigh Haryana Agricultural University, Bawal: extraction unit effectively. A centre for excellence in research, development and extension especially in rainfed agriculture and biodiesel Proposed future activities crop development. RRC, Bawal is the technical partner for this project. C) Rural Bio-fuel Cooperative: The cooperative formed will procure the oil-seeds and will engage in oil- extraction and its marketing to end users.

Project replicaibility Immediate Short Term Replicability: The microenterprise model project could be replicated in many villages in Haryana and elsewhere in the country, within few years of this project. (For example in Gujarat in cooperation with SEWA. It is engaged in bio-fuel plantation to be matured soon.) The project aims to set up oil extraction units in other villages on successful implementation of the model. Replicability at Country level: Considering 35 million hectares of wasteland available in villages in India, the project has immense scope and high Replicability. There is already a National draft policy on bio-fuels (not yet finalised and funded) may adopt/replicate successfully implemented programmes. Yes, it is expected to attract public interest with National Programmes in Jatropha/bio-fuel plantations all over the country. India has nearly 63 million hectares of wasteland available in the country, out of which 35 million hectares of wasteland have been allotted for tree plantation. Project activities completed (August 2006) Awareness Generation: Several community and village meetings with the stakeholders were held to highlight the potential of biofuel and livelihood generation options. Land Allocation for Project Site: The village community has jointly identified and a resolution was passed to set up the extraction unit on community land in Bhadoj village. Formation of Biofuel Extraction Committee (BEC): The committee of 15 members, having 5 each from About IRADe project villages, including women representation and members from village panchayat is formed. The BEC Integrated Research for Action Development (IRADe): IRADe is a fully autonomous advanced research institute, which aims to do research and policy analysis, train people and be a hub network among various stakeholders. IRADe is currently working with Government organizations such as the Ministry of Environment & Forest and the Ministry of Non- conventional Energy Sources. Further, IRADe has collaborated with academic and research institutions such as Stanford University, Indira Gandhi Institute of Development Research (IGIDR) and IGES Japan (Institute for Global Environmental Strategies), with multilateral organizations such as UNCTAD, UNDP, UNEP and the World Bank, and with NGOs such as ENERGIA and Winrock International India (WII). IRADe is working with Reliance Industries Limited (RIL) on CDM for Coal Bed Methane utilization project.

Contact Us: Jyoti Parikh, Executive Director Integrated Research and Action for Development (IRADe) C-50, Chhota Singh Block New Delhi 110049 Tel: 91-11-26495522-23 Fax: 91- 11-26495522 – 23 E-mail: [email protected] Website: http://www.irade.org