Marketing and financial challenges

Presentation Path
 Claro’s Functional Lines
 MNRE guidelines for system operation
 Dynamic Solutions Offered
 System Cost Distribution
 Financial Support by the Government
 Marketing and Financial Challenges Faced
 Solutions Offered
FUNCTIONAL LINES
B2G
• Government
Tender Projects
•
B2B
• Direct Sales to
the Private
Sector
• Farmer’s of
Large
Agriculture
Organizations
• Organizations
having irrigation
requirements
• Organization’s
CSR
B2C
• Irrigation As A
Service
Ministry of New and Renewable Energy Guidelines
Discharge at a Base Head
Rated Power
(Wp)
Solar Pumps
Total Head (m)
Discharge
(Lit/D)*
Surface
900
10
65,000
Submersible
900
20
50,000
Surface
1800
10
150,000
Submersible
1800
20
90,000
Surface
2700
30
190,000
Submersible
3000
30
110,000
Submersible
5000
35
220,000
1 HP (AC/DC)
2 HP (AC/DC)
3 HP (AC/DC)
5 HP (AC)
*Discharge figures are on a clear sunny day at average radiation of 7.15kwh/sqm/day
Dynamic Solutions
5 HP
Total Head (m)
Water Output (lpd)
Days required for irrigation
10
3,60,000
0.6
30
1,44,000
1.4
50
1,00,000
2.0
75
64,200
3.2
*Discharge figures are on a clear sunny day at average radiation of 7.15kwh/sqm/day
* Area Under Irrigation = 1 acre, Depth of water in field = 2 inches
Dynamic Solutions
System
Water Depth in
Configuration
Field
Total Head
Days required for
irrigation
1 HP
2 inch
10 m
2.28
2 HP
2 inch
10 m
1.14
3 HP
2 inch
10 m
0.76
5 HP
2 inch
10 m
0.48
*Discharge figures are on a clear sunny day at average radiation of 7.15kwh/sqm/day
*Field Size = 1 Acre
System Cost Distribution
20%
15%
Pump
10%
Controller
Panel
10%
Structure
BOS
45%
Additional Expenditure on Maintenance , Insurance etc
MNRE’s subsidy disbursement route for solar pumps
MNRE
Umbrella
Program
TENDER PROGRAMS
LOAN PROGRAMS

100,000 pumps
to be installed
each year
State Renewable Energy
Development Agency (SREDA)
Financial Institutions/
Integrators
(e.g. NABARD)

400 Cr already
sanctioned in
Sep’14

State
government,
NABARD and
Dept. of Water &
Sanitation to
implement
programs
STATE DEPARTMENTS
Agriculture
Fisheries
Drinking Water, etc.
LENDING INSTITUTIONS
Commercial Banks
Cooperation Banks
Regional Rural Banks
Tender Programme
Funding Contribution Breakup
10%
30%
60%
Central Government Subsidy
State Government Subsidy
Beneficiary Contribution
Loan Programme
40%
35%
30%
25%
Option I
20%
Option II
15%
10%
5%
0%
Central Government
Subsidy (Back Ended)
Loan Assistance at RBI
Rate
Farmer Contribution
NABARD Solar Pumping Program
Stake holders and Process
Application for sanction of Solar Water
Pump project (20% farmer contribution)
Checks eligibility & Sanctions loan
(80% of Project cost)
Loan Repayment over min 5 years
(No interest on Subsidy component)
(Back ended adjusted against final
instalments)
Commissions Solar
irrigation pump
for farmer
MNRE
Empaneled
Suppliers
100% Payment made directly to Supplier
(Post installation & site visit)
BANK
Application to NABARD for
Capital subsidy (~40%)
Subsidy credited to
“Subsidy Reserve Fund Account”
Loan Programme cont..
System Price
Rate
Tenure in years
Loan
Subsidy
Farmer Cash
Outflow
100 RBI Lending Rate.
12%
5
Y0
Y1
Y2
Y3
Y4
Y5
40
Rs. -11.10 Rs. -11.10 Rs. -11.10 Rs. -11.10 Rs. -11.10
40
Rs. -8.00 Rs. -8.00 Rs. -8.00 Rs. -8.00 Rs. -8.00
-20.00
Rs. -19.10 Rs. -19.10 Rs. -19.10 Rs. -19.10 Rs. -19.10
Instalment to be Waived Off
Marketing Challenges
Beneficiary
inability to
bear
upfront cost
Small land
parcels at
multiple
locations
Apprehension
about system
performance
Desire for
System Demo
Challenges of
rural
marketing
Free
electricity for
agriculture in
several states
Financial Challenges
Subsidy related farmer mindblock
Banks apprehension to issue loans
Capital Intensive System
Previous Loans taken against KCC
System Capabilities
System
Design
Flexibility
Irrigation
As a
Service
System
Longevity
– 25 years
System
No
battery
required
Movable
System
Variable
Voltage
Operation
Movable Systems
Video
Movable Systems
Movable Systems
Movable Systems
Awareness Generation and Demand Aggregation
Setting up rural stores to educate farmers about solar pumping and serve as Demand Aggregation &
support Centers
Claro’s first service center & local store
Movable solar trolley for low cost irrigation
service
THANKS