Indo-German Development Cooperation

Edited by the German Embassy New Delhi

india 2012

Sustainable economic development defending the human capital

Energy promoting renewables, efficiency and conservation

EnvirONment balancing ecology and economic growth

Indo-German Development C o o p e r at i o n Principles and projects to tackle shared challenges

FOREWORD

FOREWORD

India’s economic development in the last two decades

poverty, will not be achieved. Germany and India were

is beyond doubt a success story. Per capita income has

among the 189 countries that committed themselves to

doubled in the last ten years and the private sector has

these goals at the United Nations Millennium Summit

registered high levels of investment.

in 2000.

However, there are huge challenges that need to be

Secondly, Germany is keenly interested in protecting

tackled. Poverty is still a serious issue. In the wake of

global goods like climate, the environment and inter-

rapid economic growth, the already enormous pres-

national stability. It is obvious that in this endeavour

sure on the environment, natural resources and infra-

India, a subcontinent of more than 1.2 billion people, is

structure has intensified further.

increasingly a key global player.

Supporting India in overcoming these development ob-

What does Indo-German development cooperation ac-

stacles is the aim of Indo-German development coop-

tually mean? In which sectors are we involved? Who are

eration.

our partners? Answers to these questions are available in the following pages. However, this brochure can

Why is German development cooperation engaged in

certainly be no more than a brief overview. For more

India? The reason is at least twofold. Firstly, without

and detailed information, we recommend a click on the

development percolating to the masses in India, the

respective websites that are mentioned alongside. We

Millennium Development Goals, e.g. halving global

wish you an interesting and informative read.

Traffic on Madan Street, Kolkata. Š Martin Roemers / Panos

Dear Readers,

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ENVIRONMENT

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ENERGY

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SUSTAINABLE ECONOMIC DEVELOPMENT

08 Intensifying partnerships through environment management 10 Umbrella programme on natural resource management

16 Solar power full speed ahead 18 From waste to energy 20 Insulation against the heat and cold

24 People, planet, profit 26 Small loans - big impact 28 Workforce protection

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FOREWORD

12 Action plans on climate change

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CONTENT

Working with NGOs, churches, political foundations and more

FOR A BETTER LIFE German Missions in India fund small-scale projects

FORGING PARTNERSHIPS Bringing multilateral organisations together

IMPRINT

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PARTNERING WITH THE CIVIL SOCIETY

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Bringing public and private partners together

addresses

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PARTNERSHIPS WITH PRIVATE SECTORS

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Economic

Economic globalisation is going to create an enormous amount of wealth,

g lo b a l i s at i o n

and we are already beginning to realise that what you do in one country will have an environmental impact

must be followed by

ecological in another country. And therefore you cannot maintain the earth in harmony by only managing your own country.

You have to manage the whole earth. That is what I call ecological globalisation.

g lo b a l i s at i o n Anil Agarwal, environmentalist, April 1999

urbanisation and industrialisation. For example, sustaining urban water bodies, ensuring better local air quality

ENVIRONMENT

Germany and India face shared challenges due to rapid

and sustainable land use.

Germany is a world leader in innovative clean technologies. India and Germany are long-standing partners in this field.

The first Memorandum of Understanding (MoU) on cooperation in the field of environmental protection was signed in September 1998. Since then, cooperation has expanded to management of waste, water and renewable energies.

Germany is supporting India in various areas to develop sustainable solutions that balance economic growth and environment conservation.

Indo-German development cooperation specifically focuses on the areas of natural resource management, sustainable consumption and production, urban environment protection, climate change adaptation and mitigation, as well as innovative green technologies.

Germany provides about INR 34.45 billion (500 million euro) annually to India as Overseas Development Assistance − ODA (soft loans and grants) − in these areas.

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Intensifying Partnerships Through Environment Management Improving basic services in cities

There is long-standing cooperation between Germany’s Gesellschaft für Internationale Zusammenarbeit (GIZ) and India’s Ministry of Environment and Forests (MoEF) in the field of environment management.

Focus areas: Strengthen India’s sustainable urban and industrial development efforts and intensify partnerships between Indian and German institutions.

Support key Indian policy initiatives, such as the National Environment Policy, the National Action Plan on Climate Change, and the Jawaharlal Nehru National Urban Renewal Mission.

Successes: Introduction of sustainable waste management and development of a number of city sanitation plans, as well as efficient concepts for drinking water supply and waste water management in a number of cities.

More achievements: The principles of ecologically sound industrial parks have been introduced in 30 sectors; a sanitary landfill site for hazardous waste has been built in Karnataka.

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Water supply in Vyasarpadi area, Chennai. Š Sanjit Das / Panos

ENVIRONMENT

UMBRELLA PROGRAMME ON NATURAL RESOURCE MANAGEMENT Supporting ENVIRONMENT-FRIENDLY TECHNOLOGIES and practices

The Umbrella Programme on Natural Resource Management (UPNRM) was launched in 2009 and is jointly implemented by India‘s National Bank for Agriculture and Rural Development (NABARD), German government-owned development bank KfW and GIZ. The programme provides combined packages of loans and grants to financially viable and small initiatives of NGOs, producer companies, corporates and communities.

UPNRM also promotes environmentally sustainable growth by encouraging private investments that benefit the poor.

Successes: The “umbrella programme” encompassed over 75 projects by August 2011; ranging from forest-based medicinal plants and eco-tourism, to integrated dairy management in developed watershed areas and other livelihood activities.

Over 100,000 participants, of whom approximately 36 per cent are women and 44 per cent from scheduled casts and scheduled tribes, are involved in the projects.

UPNRM will not only help in scaling up existing approaches (Watershed and Adivasi development), but will also explore other sub-sectors like forestry, farming systems management, agro-processing, natural resource based livelihoods and climate change adaptation.

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Small-scale cattle farming, Rajasthan. Š Mitchell Kanashkevich

ENVIRONMENT

Action plans on climate change Tackling effects of climate change in rural areas of India

In 2008, Indian Prime Minister Dr. Manmohan Singh launched the country’s National Action Plan on Climate Change.

Germany’s GIZ is working in collaboration with United Nations Development Programme (UNDP), World Bank, Asian Development Bank (ADB) and UK’s Department for International Development (DFID) to provide inputs to India’s MoEF for preparation of a common framework for the action plans at national and state levels.

Madhya Pradesh, Rajasthan, Tamil Nadu and West Bengal are the chosen locations for the project Climate Change Adaptation in Rural Areas, as they encompass India‘s differing agro-climatic zones.

GIZ, together with KfW, will also be supporting the implementation of the State Action Plans on Climate Change in selected Indian states, especially in the North East of India.

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Mud cracks during drought, Rajasthan. Š A. Ishokon - UNEP/ Still Pictures

ENVIRONMENT

PROMOTING 5% of the total generation in the country actually comes from green power.

INCREASED USE OF India reached 5% level in 2010 and annually

GREEN POWER one percent is going to add up to take it to 10% by 2015.

IS FOR OUR OWN Dr Pramod Deo, Chairperson, Central Electricity Regulatory Commission, 2011

ENERGY SECURITY

ENERGY Energy is a priority issue for India. About 400 million people in the country are still without a power connection.

Estimates suggest that the total demand for electricity in India will double by 2030.

Germany supports an inclusive energy supply that is sustainable not only in economic, but also in ecological terms.

The major objective is to decouple energy consumption from economic growth.

Implementation of reforms in the electricity sector will facilitate an increased use of renewable resources, improve energy efficiency and promote energy conservation at all levels of society and in all sectors of the economy.

Germany’s KfW has committed INR 96 billion (1.4 billion euro) in the past five years – an average of INR 19.3 billion (280 million euro) per annum.

Additionally, technical cooperation for public and private partners has been increasing steadily in energy efficiency and renewable energy sectors, and amounts to a total of INR 1.7 billion (25 million euro) in the past five years.

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SOLAR POWER FULL SPEED AHEAD Promoting the solar sector

The Government of India has launched the Jawaharlal Nehru National Solar Mission to tackle the twin problems of power deficits and mounting carbon emissions. It sets an ambitious goal of achieving 20 Gigawatt (GW) of solar capacity by 2022, compared to 109 Megawatt (MW) at present.

In August 2011, Germany’s KfW signed an INR 17.2 billion (250 million euro) loan agreement to support the construction of a 125 MW solar photovoltaic plant in the state of Maharashtra.

The Sakri solar power plant is India’s first large-scale and Asia’s biggest solar photovoltaic plant. Its total cost is estimated at INR 25.5 billion (370 million euro).

The power plant is due to be commissioned in 2012.

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Vendors use solar powered lights, Ahmedabad. Š Amit Dave / Reuters

ENERGY

FROM WASTE TO ENERGY Advancing renewable energy developers

Green Elephant Group is an Indo-German renewable energy company focusing on waste to energy projects in India.

The company has brought a new technology for processing agricultural residues into compressed gas to India.

With the construction of its first biogas plant in India’s sugar belt at Satara District in Maharashtra, Green Elephant set up the largest production capacity of this type in Asia.

The plant consumes approximately 200,000 m³ of organic sugarcane waste per annum and generates approximately eight million m³ of gas per annum.

The project was set up in the framework of Indo-German financial cooperation and is financed by the Indian Renewable Energy Development Agency Limited, through a credit line from KfW.

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Waste from sugar cane, to be converted into bio CNG. Š Jack Kurtz

ENERGY

INSULATION AGAINST THE HEAT AND COLD Boosting energy efficiency in residential buildings

In the light of rapid industrialisation, growing urban population and the detrimental effects of greenhouse gas emissions, energy efficiency is a top priority worldwide.

Under KfW’s support, India’s The Energy and Resources Institute (TERI) and Germany’s Fraunhofer Institute have jointly adapted an assessment tool for calculating, optimizing and certifying energy efficiency of buildings.

The software received encouraging responses from all stakeholders and is currently being applied in the Promotional Programme for New Residential Housing implemented by the National Housing Bank (NHB).

KfW has provided a credit line of INR 3.4 billion (50 million euro) and a grant of INR 137 million (two million euro) to NHB to develop and finance energy efficient measures in residential buildings in India.

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Labourers work at a construction site, Chennai. Š Babu Babu / Reuters

ENERGY

PEOPLE Development is thus about expanding the choices people

ARE THE REAL

WEALTH OF have to lead lives that they value. And it is thus about much more than economic growth,

NATIONS which is only a means - if a very important one - of enlarging people‘s choices

Human Development Report, UNDP @ http://hdr.undp.org, 2012

the past 20 years, massive social and regional disparities remain.

Germany supports India’s reform policies geared towards inclusive, and regionally and socially balanced growth.

Indo-German cooperation for sustainable development is organised around three pillars in this priority area: financial systems development, private sector development and social protection.

In financial systems development, Indo-German cooperation targets the provision of adequate demand-oriented financial services in India. The programmes support financial inclusion, especially for below poverty line families.

SUSTAINABLE ECONOMIC DEVELOPMENT

Despite India’s remarkable economic achievements over

In private sector development, Germany’s cooperation with India addresses responsible business behaviour and competitiveness. The programme also promotes properly functioning markets and institutions. Additionally, it encourages an intensive public-private dialogue.

As sustainable and inclusive growth is strongly interlinked to social security, Germany and India work together to provide social protection to unorganised workers and below poverty line families. This includes health, life and accident insurance, and old age pensions, among others.

The support for the priority area of Sustainable Economic Development has grown steadily. The total commitments over the past five years exceed INR 17 billion (250 million euro).

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PEOPLE, PLANET, PROFIT Encouraging socially, environmentally and commercially responsible practices

The Indo-German Corporate Social Responsibility initiative seeks to encourage companies, both large and small, to integrate environmentally and socially responsible practices in their core businesses.

This initiative has been formulated by the Indian Ministry of Corporate Affairs with the support of GIZ. It aims to help Indian businesses achieve the triple bottom line − ‘People, profits, planet’.

This project enables a multi-stakeholder dialogue process, involving a wide array of public, non-governmental and private-sector actors. Various studies and surveys are also conducted.

Pilot schemes: The initiative is currently working with three clusters consisting of business member organisations representing 100 energy-intensive steel foundries.

A range of simple measures, such as energy efficiency and safe and hygienic working conditions are being implemented. The number of clusters is now set to rise to 18, involving 25 business member organisations.

Another success: The Corporate Social Responsibility Voluntary Guidelines 2009 lay down the fundamental principles of responsible business behaviour and competitiveness. These guidelines are applicable to all businesses, irrespective of size, sector or location.

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Safety at work in a steel fabrication yard, New Delhi. Š Zackary Canepari / Panos

SUSTAINABLE ECONOMIC DEVELOPMENT

SMALL LOANS - BIG IMPACT Enhancing financial inclusion of the poor and excluded

Through the Cashpor Micro Credit programme, Germany’s KfW seeks to improve access to finance by the poor and financially excluded households.

This will contribute to household asset creation, sustainable income generation, poverty reduction and growth.

Cashpor Micro Credit exclusively targets below poverty line households and works in the villages of Uttar Pradesh, where no other microfinance institution is present.

Through an INR 5.8 billion (85 million euro) credit line from KfW to the Small Industries Development Bank of India (SIDBI), refinancing support is being extended for sub-loans to microfinance institutions in order to scale up microfinance activities.

Cashpor is one of the many microfinance institutions supported under this programme.

Additionally, INR 116 million (1.7 million euro) has been provided to further enhance SIDBI’s capacities, to develop rating, appraisal and risk assessment tools and to train selected partner microfinance institutions.

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Sustainable income generation, Chandigarh. Š Ajay Verma / Reuters

SUSTAINABLE ECONOMIC DEVELOPMENT

Workforce protection Securing the human capital

The Indo-German Social Security Programme (IGSSP) provides technical advice to the Indian Ministry of Labour and Employment for the implementation of the Unorganised Sector Workers’ Social Security Act, and to help improve the social security system for workers in the unorganised sector and their families.

Salient points of IGSSP: health insurance, old age pensions, life and accident insurance, promoting coherence between different social security systems and supporting an IndoGerman social policy dialogue.

Support for India’s Rashtriya Swasthya Bima Yojana (RSBY) is one of four components of the IGSSP. Germany’s GIZ has been directly involved in the design and implementation of RSBY since 2008. RSBY is an extremely innovative approach to health insurance—a whole family gets health insurance coverage, cashless and paperless, made possible by a smart card.

In the years to come, this RSBY smart card could also include a variety of additional benefits and services, e.g. motherhood benefits or food subsidies.

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Medical care to new born babies, Raxaul. © Sanjit Das/Panos

SUSTAINABLE ECONOMIC DEVELOPMENT

PARTNERSHIPS WITH PRIVATE SECTORS Bringing public and private partners together

Partnerships between the private sector and the state

For example, through KfW, Germany is supporting India

are pivotal to fostering sustainable development.

in developing a National PPP Capacity Development Programme. A grant of INR 48 million (Euro 700,000)

With its Public-Private Partnership (PPP) strategy, the

will assist India’s Ministry of Finance in improving the

Federal Ministry for Economic Cooperation and De-

knowledge and skills of up to 4,000 public officials

velopment (BMZ) intends to strengthen the concerted

throughout India.

action of official development cooperation and private business activity.

India and Germany’s KfW are establishing a national urban infrastructure scheme that focuses on promoting

Germany’s develoPPP.de programme combines the

PPP infrastructure projects in urban areas. It provides

strengths of public and private partners: development

long-term financing for investments in environmental

partnerships are planned, financed and implemented

infrastructure, such as water supply, sewerage and

jointly.

waste water, and solid waste management.

The aim of develoPPP.de is to mobilise additional contributions from the private sector, utilize private management know-how with a view to more efficient service delivery, and promote private-sector investment as a growth engine for India’s development process.

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left © Carles Platiau / Reuters right © Jayanta Shaw/ Reuters

PARTNERSHIPS WITH PRIVATE SECTORS

PARTNERING WITH THE CIVIL SOCIETY Working with NGOs, churches,political foundations and more

India is Germany‘s biggest partner in NGO cooperation.

Example: EED supports an NGO, UNM-M, in Manipur

Political foundations represented in India: Friedrich

Among the most important German NGOs, in terms of

that works to reduce the impacts of ethnic conflict,

Ebert Foundation (FES), Konrad Adenauer Foundation

financial engagement, are Karl Kübel Foundation,

especially on women and children. Misereor supports

(KAS), Friedrich Naumann Foundation (FNSt), Hanns

Jugend dritte Welt, Ärzte dritte Welt and Andheri Hilfe.

Butterflies, a voluntary organisation working with street

Seidel Foundation (HSS), Heinrich Böll Foundation

children since 1989.

(HBS) and Rosa Luxemburg Foundation (RLS).

establishment of social and institutional structures,

BMZ promotes the activities of seven agencies that are

Key aim: Fostering sustainable development and

food aid, emergency and refugee aid, education, voca-

engaged in social structure assistance in India-Arbei-

strengthening partnerships, e.g. in a dialogue with po-

tional training, health and engagement in the area of

terwohlfahrt, Education Centre of the Confederation

litical parties, organisations, and sustainable promotion

environment.

of German Trade Unions, Bremen Overseas Research

or establishment of democracy and civil society.

Fields of work: Rural development, poverty reduction,

and Development Agency (BORDA), Deutscher CaritasExample: In cooperation with the Indian NGO Unnati, the

verband, German Cooperative and Raiffeisen Confed-

Example: Training programme for small and medium

Malteser International runs a project of strengthening

eration, Institute for International Cooperation of the

enterprises by KAS. Assisting the continuation of eco-

community resilience and social inclusion of marginal-

German Adult Education Association, and Social and

nomic reforms at the state level, especially in the areas

ised Dalit and tribal communities in western Rajasthan.

Development Aid of the Kolping Society.

of investments, state finance and good governance with a mid-term multifaceted consultancy and workshop

The Church Development Service (EED) and

Fields of work: Establishing and strengthening self-help

Misereor support programmes and projects in

organisations, especially cooperatives, adult education

India.

and sector-specific development projects and pro-

The BMZ-funded Weltwärts-programme is a volunteers’

grammes.

service plan created in 2008. It aims to promote inter-

Fields of work: inte­gra­ted rural development, promotion

project.

cultural understanding. By mid 2010, 322 young German

of sustainable agricultural practices, improvement of

Example: BORDA is promoting a project for decentral-

volunteers were placed in India for about one year,

livelihood opportunities, education, health, and initia-

ised watershed systems in India. The project supports

mainly in NGOs dealing with health and environment-

tives in community develop­ment.

small and medium sized enterprises, institutions and

related issues.

communities in planning, designing and constructing effective, reliable, cost-efficient and custom-made wastewater treatment systems.

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left top © EED left bottom © Misereor right © Carmen Wolf / Malteser International

PARTNERING WITH THE CIVIL SOCIETY

FOR A BETTER LIFE German Missions in India fund small-scale projects

Through their grants, the German Diplomatic and

Some of the projects include drinking water tubewells

Consular Missions in India provide direct financial as-

for poor rural/tribal communities, electrification of rural

sistance to Indian NGOs and religious institutions for

community buildings with solar energy panels, pur-

implementation of small-scale projects for the benefit

chase of medical equipment for orphan centre/hospital

of disadvantaged groups of society.

for the poor, equipment for setting up a bakery as vocational training for street children, special typewriting

This programme is funded by the German Federal Min-

machines for the blind, and furniture for rural schools.

istry of Foreign Affairs.

For application guidelines, log on to www.india.diplo.de Preference is given to projects in the sectors of poverty reduction, public health & sanitation improvement, income generation and basic education.

The gender equality policy of the project is of particular importance. For example, providing equal access to resources such as education, information, income, energy, drinking water and infrastructure, as well as tangibly improving women’s lives in the project area.

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left top © Manpreet Romana right top © Arko Datta / Reuters bottom © Ralf Hirschberger / dpa

FOR A BETTER LIFE

FORGING PARTNERSHIPS BRINGING multilateral organisations together

Germany works with the European Union, ADB, the World

In terms of volumes, the World Bank (WB) is the most

Bank, and UNDP in the field of development cooperation.

important partner of India, with a total proposed lending of INR 698 billion ($14 billion) for 2009-2012.

Multilateral efforts are an important pillar of Indo-German development cooperation.

WB funds focus on helping India fast-track the development of its much-needed infrastructure.

Since 1976, the European Commission (EC) has been extending assistance to India and is currently focussed on

United Nations Development Programme (UNDP) has

the areas of environment, public health and education.

been India’s partner in development since 1951.

Between 2007-10, a grant of INR 18 billion (260 million

UNDP assists India through sustainable human develop-

euro) was committed. For 2011-13, an amount of INR

ment with priority on poverty alleviation, gender equity,

14.5 billion is foreseen.

women’s empowerment and environmental protection.

Another important partner: India and Germany are found-

UNDP support to the Government of India for the period

ing members of the Asian Development Bank (ADB).

2008-2010 has been INR 2.5 billion ($51.5 million). Most of this was spent in the area of democratic governance.

From 1986 to 2009, ADB provided more than INR 998 billion ($20 billion), mostly committed to the area of infra-

UNDP’s focus states: Bihar, Chhattisgarh, Jharkhand,

structure. It also covers coastal protection, management

Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh.

investment and the promotion of clean and renewable energy. In 2011, ADB extended an INR 369 billion ($7.4 billion) loan for sustainable growth.

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left © Babu Babu / Reuters right top © picture alliance / Photoshot right left © Parth Sanyal / Reuters

FORGING PARTNERSHIPS

addresses The German Ministry for Economic Cooperation and Development (BMZ) develops the guidelines and the fundamental concepts on which German development policy is based. It lays down the long term strategies for cooperation with the various actors involved and defines the rules by which these are translated into practice.

The KfW Development Bank is responsible for financial cooperation (FC). FC supports

KFW Office New Delhi

partner countries in the financing of innovative solutions important for development.

Mr Oskar von Maltzan, Director 21, Jor Bagh, New Delhi 110003, India e mail: kfw.newdelhi@kfw.de www.kfw-entwicklungsbank.de

The Deutsche Investitions- und Entwicklungsgesellschaft (DEG),

DEG Office New Delhi

a subsidiary of the KfW Group, provides long term finance and advice to German and

Mr Armin Albert, Office Director

international private enterprises from partner countries with a view to invest in places

21, Jor Bagh, New Delhi 110003, India

where no such services are available in the local market. It offers equity capital, mezzanine finance, loans and guarantees.

e mail: deg@degindia.com www.deginvest.de

The Deutsche Gesellschaft f端r Internationale Zusammenarbeit (GIZ) GmbH

GIZ Office India

is responsible for technical cooperation (TC). It provides technical, economical and

Mr Stefan Helming, Country Director

organisational knowledge and skills to strengthen the capacity of individuals and

21, Jor Bagh, New Delhi 110003, India

organisations. In addition to its work for the German Government, GIZ is active on behalf of international clients (partner countries, EU Commission) through GIZ

e mail: giz-indien@giz.de

International Service.

www.giz.de

Published by: Embassy of the Federal Republic of Germany 6/50G Shantipath, Chanakyapuri New Delhi 110 021, India

addresses / IMPRINT

IMPRINT

Š January, 2012 Phone: +91 11 44199 153 email: wz-11@newd.diplo.de Editors: Bernd Dunnzlaff, Jens Urban Managing Editor: Yvonne Krause Text: Sakshi Arora Circulation: 8500 Printed at: HT Media Ltd B-2,Sector 63 Noida 201 307 U.P, India

Design:

Groupe Dejour, Berlin, Germany www.groupe-dejour.de

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