Community Business Enterprises – Carbon
Revenue for Self Help Groups Through Fly Ash

 

Technology and Action for Rural Advancement (TARA) a part of the Development Alternatives Group, in association with National Bank for Agriculture and Rural Development (NABARD), is implementing an innovative programme on setting up Community Business Enterprises (CBE) in Vidarbha, Maharashtra for producing quality fly ash bricks through adaptation of a green and sound technology. This endeavour will go a long way in easing the issue of limited availability of good quality clay fired bricks in the region

The CBE project is centred on creation of livelihoods for women SHG groups - who have a good track record of savings and motivation - to run the enterprise. Another innovative component integrated with the project is the advantage of the energy savings achieved in comparison to poor quality burnt clay bricks. It will provide a viable opportunity for utilisation of fly ash. Additionally, it will further result in the reduction of carbon emission, enabling the community enterprises to avail of carbon revenue entitled to Certified Emmision Reduction (CERs). The overall positive impact on the environment will be tremendous.

With these benefits in mind, the commercial enterprises so set up are expected to be self sustaining and generate enough cash flow to repay the debt within six years of operation.

The notable breakthrough achieved by TARA has been the dissemination of technology packages which makes it possible for largely untrained community members to produce high quality products in a commercially sustainable manner. One of them is fly ash. The TARA fly ash package consists of easy to operate semi-mechanised equipment to produce composed bricks.

A cluster of 40 self-sustaining CBEs will be set up within a period of 2 years. These will manufacture and supply to the market good quality fly ash blocks while effectively utilising fly ash generated by power plants. These CBEs will also have TARA management support for the initial period of one year to stabilise all operational costs and market parameters.

These CBEs will result in the creation of sustainable livelihoods of 250 group members. Along with this, these enterprises will be able to utilise 30000 tonnes of fly ash annually by the end of the second year. The fly ash bricks are expected to augment the limited availability of good quality bricks in Vidarbha. Moreover, the CBEs will take advantage of the energy saving achieved in comparison to poor quality burnt clay bricks along with their estimated carbon revenue.

Setting up of a community enterprise involves several process stages and each activity plays a very influential role. Right from SHG mobilisation to the commissioning, it requires a consistent level of motivation among the group members. Keeping the motivational momentum consistent throughout the process and keeping them united in the form of common interest group is one of the most critical factors in the project. Since the entire project is based on the workings of the community, it becomes very important to have an effective mobilisation mechanism in practice. TARA does this with the support of local NGOs. The mobilisation process follows the identification of a community based organisation which has good networking with self help groups. The parameters followed by TARA in order to identify potential community level organisations are determined by the background and area of work that these organisations are exercising. The preferred focus area of organisation should be:

• Self Help Groups (Federations /Cooperatives preferred)

• Livelihood/Enterprise Development

• Waste Recycling/Climate Change/Environment

This criterion helps in the project planning and result-based mobilisation activity.

The assessment of SHGs becomes most critical, particularly for the kind of business acumen required to run and manage the fly ash based enterprise. TARA follows a specific assessment model in which SHGs are virtual classrooms where women learn the ideals of democratic governance through practice. The ability to work together as a group, developing mutual trust – and the mechanisms to reinforce that trust – and participatory decision making are vital capabilities that these women learn, enabling them to form and manage a variety of peoples’ institutions in the process. The bonding and trust among members are assessed in order to keep the end result in mind.

The experience and capabilities developed through functioning in collectives stand SHG members in better stead to succeed in enterprise management. TARA uses the standard eligibility norms to identify potential SHG/s.

An incentive model has been put in practice to encourage NGOs to better facilitate their SHGs. The model recognises the efforts of NGOs in assisting their SHGs to set up fly ash based enterprises. The facilitation component is based on various levels of efforts.

Till date, six CBEs have been successfully established in Nagpur, Chandrapur and Wardha districts of the Vidarbha region of Maha-rashtra. q

Praveen Manikpuri
pmanikpuri@devalt.org


 

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