Green Leaf Energy Private Limited www.thegreenleafenergy.com Email: contact@thegreenleafenergy.com +91-9162207031
National Conference on Accelerating Biofuel Programmes in India Experience of Bihar in Biofuels
Green Leaf Energy Pvt. Ltd.– The Journey till now First operations Set up nursery of 1.2 lakh saplings of Pongamia in Kothwara village of Gaya district
JV & MOU offer from BPCL Received JV & MOU offer from BPCL to complete biodiesel value chain in Bihar
Plantation 2012
Biodiesel Value Chain
Diversified into high density horticulture plantation along with Pongamia
Plantation of 7 million saplings horticulture, Pongamia and bamboo saplings completed in 10 districts
Tie-up with BPCL and Indian Railways. Approval from SIPB, Industry Dept. Govt. of Bihar for setting up 20000 Ton biofuel plant. Expanding to Gujarat and Jharkhand
Plantation 2010
Tie up with farmers Conducted awareness camps and entered into agreement with 200 farmers over 500 acres of land in Gaya
Plantation of 1 lakh Pongamia saplings over 500 acres of land of 200 farmers in 4 panchayat of Dobhi Block of Gaya in Bihar
2010
2009
Diversification
FY – 2012-13
FY – 2011-12
Turnover: Rs. 32.52 Crore Profit: Rs. 4.73 Crore
Turnover: Rs. 6.07 Crore Profit: Rs. 75 Lakh
2011 2012
2013 Horticulture Value Chain
Plantation 2011 Inception 2009: Green Leaf Energy incorporated in Gaya under the guidance of XLRI Entrepreneurship Development Centre
Approval from Government MORD, GOI and GOB issued Rd. Lt. no 6723 for convergence of NREGA for Pongamia plantations in Bihar. GLE appointed as project proponent for Bihar
Plantation of 1 million saplings in 100 panchayat of 8 blocks of Gaya in Bihar
Recognition MORD Recognized Bihar model of plantation and recommended to replicate across India. Invited to LBSNAA to conduct National Level workshop on MGNREGA and train IAS 2012 graduates
Set up Fresh Fruit Juice Chain under the brand “Fruit Press” in Delhi NCR
MGNREGA Stats: Why we are lagging? All India MGNREGA Parameters Total No. of HH Registered (in cr) HH Provided employment (in cr) Total person days generated (in cr)
2013-14
2012-13
12.9
12.9
3.92
4.98
141.8
230
Avg. Mandays per HH % HH reg. not provided employment
36.2
46.1
69.61%
61.40%
Avg. Mandays per HH reg
10.99
17.83
Note: 2013-14 data is as on 5 Feb, 2014 taken from nrega.nic.in
We are not able to provide employment to all registered Job Card holders A large number of job-card holders are not prepared to do earth works Under social forestry even old age people, handicaps and women can get employment as van poshak, taking care of the plants How can we provide work to all people registered under MGNREGA? How can we provide 100 days of guaranteed employment?
Social Forestry Model under MGNREGA
Schedule 1 of MGNREGA Act includes drought proofing including afforestation and tree plantation Social Forestry model involves attaching bodily weak people as Vanposhaks for taking care of the plants replacing iron/bamboo gabions with ‘Human Gabions’ 4 families of the same community/caste are tagged to take care of 200 plants (1 unit) on a roaster for 3 years and are paid under the labour component of MGNREGA This instills ownership feeling and helps ensure survival of plants
Social forestry has already generated huge impact generated by these initiatives in Tirhut division of Bihar Tirhut: The Success Story Total expenditure increased from Rs. 289.56 crores to Rs. 717.56 crores
80,000
NREGA Expenditure (Rs.)
70,000
CAGR 35%
Total households provided employment increased from 10.28 lakhs to 14.41 lakhs
60,000 50,000
SC man-days increased 2.4 times from 8.47 lakhs to 20.23 lakhs
40,000 30,000
Women man-days increased 2.75 times from 4.68 lakhs to 12.86 lakhs
20,000 10,000
Average man-days increased from 17.45 to 28.74
0
2008-09
2009-10
2010-11
Total disability persons provided employment increased 2.45 times from 4559 to 11141
Potential impact of plantations on a Panchayat 50000 plants/Gram Panchayat can increase 8.33% forest area 1000 families get sustainable employment for 5 years Rs. 2 crore expenditure/Gram Panchayat; Rs. 16000 crores through social forestry under NREGA Rs. 1.31 crore expenditure every year in labour component Rs. 89.2 lakh expenditure every year in materials for drainage, PCC roads Focus on horticulture and biofuel plantations; nutritional and energy needs can be met Source: MNREGA website (nrega.nic.in)
The company works across the value chain to enable farmers realize the complete benefits of this initiative
Awareness Generation
Nursery
Plantation
Technical support
Maintenance
Processing of produce
Key activities • Rights of laborers in MGNREGA • Works taken on private lands in MGNREGA • Benefits of plantation to farmers, pancha yat and government
• Generate saplings of Pongamia and horticulture • Provide assistance to farmers in raising nurseries
• Plantation on government lands (roads, canals, ri ver beds, schools, c ommunity lands) • Plantation on farmers lands
• Provide material and technical support for planting material to government and farmers
• Farmers and laborers take care of the plants • 4 families are provided 100 days employment for 3 years for maintenance
• Buy-back of the produce • Tie up with BPCL and Indian Railways to complete biodiesel value chain • Fresh Fruit Juice Chains; Fruit Press
BIO-DIESEL PRODUCTION IN CONVERGENCE WITH SOCIAL FORESTRY UNDER MGNREGA A NEW CONCEPT FOR PROSPEROUS RURAL LIVELIHOOD, ENERGY SECURITY AND CLEAN ENVIRONMENT
Why Pongamia should be preferred over Jatropha plantations?
Parameter
Pongamia
Jatropha
Origin
Indigenous
Exotic
Adaptation to soil & climate of Bihar
Well adapted to all conditions and particularly rain fed dry wastelands
Adapted to specific situations only
Drought resistance
Excellent
Moderate
Salinity resistance
High
Low
Nutritional requirement
Low being a leguminous tree
Moderate being a non leguminous shrub
Why Pongamia should be preferred over Jatropha plantations? (contd...)
Parameter
Pongamia
Jatropha
Planting density per acre
200
1000
Possibility of intercropping
High during first 3-4 years
Possible during first 1-2 years
Mechanized cultivation
Possible due to low planting density allowing free movement of tractor
Difficult due to high planting density
3-5 on attainment of full potential
2-3 on attainment of full potential
28-40
30-40
Seed yield acre)
(t /
Oil content in seed (%)
Pongamia pinnata
Seeds
Nursery Raising Scion collection from identified plant
Grafting
Growth
Profuse flowering in a 3 year old plant
Biodiesel-production
Pongamia Plantation, Germinate pods
Power Plant set up for rural electrification from shells
Transesterification of Pongamia oil to produce Biodiesel, and byproducts like Glycerine
Decortication of pods to yield seeds
Crushing of seeds to yield Pongamia Oil
Biodiesel Value Chain
Power Shell Biofertilizer
Pods
Biogas Cake Biodiesel Seed Biopesticide Oil Glycerine
Setting up of Biodiesel unit in Gaya, Bihar • Expected to procure 20000 tonnes of Pongamia and Mahua seeds in 2014 • Fruiting season of Pongamia : April to June, Mahua : May to August • Oil extraction of 30% from expeller units : 6000 KL oil production • Approval from SIPB, Industry Dept. Govt of Bihar • Tie up with Indian Railways and BREL (a JV of BPCL and Shapoorji Pallonji) • Acquired land : 10 bigha in Karmauni village, Dobhi block, Gaya – Dobhi Road • Average 250 days working in a year • Setting up extraction unit of 80 ton/day capacity. Setting up 12000 ton godown for seed storage, 800 ton godown for running factory operation, 168 ton godown for seed cake, 3 chamber of 25 KL each • Total Seed Cake Production : 12600 Ton
We are present at each block within the area of our operations and ensure quality plantations with nearly 100% survival rates
District Officer
Block Officer
Block Officer
Block Officer
Block Officer
Core Team
Responsible for the overall current and future operations of the company
District Officer
Responsible for particular districts, working in continuous collaboration with district administration
Block Officer
District Officer
Block Officer
Block Officer
Block Officer
Block Officer
Responsible for particular block, working in continuous collaboration with Mukhiyas and MGNREGA machinery at the panchayat level
We aid the administration to reach the unreached • Working with the system to effectively and efficiently get the work done • No hindrance faced in the Naxal affected areas
Our impact is evident across time and geographical areas • 7 million horticulture and biofuel saplings planted in 2012-13 • 35000 units = 140000 families provided employment • Approx 35000 acres wastelands reclaimed : 91000 tonne (CO2) reduction Expenditure in Gaya over time
• We started our operations in Banke Bazaar, Imamganj and Dumaria in 2011-12 and entered other blocks in 2012-13 • The effect of our work is clearly visible by the sharp increase in MGNREGA expenditure in these blocks
FY 2012-13 till October 2012 (Source: MGNREGA website) District Schemes under drought proofing Mandays Created Expenditure (In Rs. Lakhs) Gaya 7575 1984526 3850 Jamui 1927 1084090 1470 Lakhisarai 1434 423397 1101 Patna 2325 583517 1535 Sheikhpura 688 170828 818 Begusarai 10371 648213 1536 Munger 32 362780 489
We currently are not operating in this district of Munger Division
The model provides sustainable income to the native families and along with being beneficial to the environment Social Impact • Farmer led process of plantation on wastelands, alleviation of poverty • 1 lakh units of plantation impacting 4 lakh families, 119.5 million mandays for govt. land under MGNREGA
Triple Bottom Line Impact
Economic Impact • Increase in income of labours from Rs. 0 to Rs. 16000/acre as monitoring component during first 5 years • Income to increase from Rs. 6000/unit from 4th year to Rs. 80000/unit by 8th year till 50 years Note: This is for an avg. of 200 trees
Environmental Impact • Plantation on wastelands, reduction in global warming, GHG emissions • Produce biodiesel and power from renewable energy. Bihar (6.87% forest area till 2009) • Forest cover increased to 10.3%
Other possible models for social forestry Convergence with National Rural Livelihood Mission Section 1, chapter 12 of NRLM program implementation plan highlights ensuring last mile service delivery services and development of social enterprises NRLM also promotes public–private and community partnerships. Linking social forestry initiatives with various SHGs will provide sustainable benefits of this model to reach the rural population We have been successful in converging social forestry with the largest rural development model (MGNREGA) Our work across the value chain can be easily replicated to similar convergence with NRLM, with a focus on SHGs With our experience, we can be the technical, material, processing and marketing partners for the successful implementation of the scheme, thus providing sustainable livelihoods to the beneficiaries
Convergence with CSR activities of various corporate firms New Companies bill passed on Dec 11, 2012 It is now mandatory for private firms with net worth of Rs. 500 crores to earmark 2% of last 3 year’s profit for CSR Tie-ups with these firms can be used to fund the material component of plantation initiatives MGNREGA / NRLM can then be utilized to fund the labour component of plantation initiatives This model will help open-up more under-utilized land resources that belong to such firms This will also further increase the employment opportunities to rural households
Accolades for Our work
Our Team Core Team: (Co-founders and Executive Directors) 1.
2. 3.
Kumar Ankit: MBA from XLRI Jamshedpur (2009-11). Conducts workshop on social forestry and MGNREGA for government officials. Takes sessions on entrepreneurship and rural development for IAS trainees, MBA students and corporates. Mentor at IIM Kolkata for guiding social entrepreneurs. Kumar Rahul: M.B.A (Executive) from Amity University, and holds a bachelor degree in computer science and engineering from U.P.T.U. He looks after finance of the company. Manish Dayal: He holds a bachelors degree in Mechanical engineering from Kirgiz Technical University (CIS) and MBA from Magadh University. He has been a serial entrepreneur and handles nursery production and procurement.
Mentor Board: 1.
2. 3. 4. 5.
Snehanand (Ravi) Sinha : PGDBM from XLRI, Jamshedpur – 1977 batch. Ex- Director with Mercer Consulting for South Asia. Visiting Professor at IIMs, Chairperson of the Centre for Social Innovation at BIMTECH, Greater Noida Prof. Madhukar Shukla: Professor at XLRI Jamshedpur, Expert on NRLM and Social Entrepreneurship Prof. Prabal K Sen: Professor at XLRI Jamshedpur, Chairperson Entrepreneurship Development Centre, XLRI Jamshedpur Prof. Piyush K Sinha: Professor at IIM Ahmedabad, Chairperson Centre for Retailing, IIM A Prof. Uday Damodaran: Professor at XLRI Jamshedpur, Teaches Finance
THANK YOU