Providing one stop solution to sanitation in rural homes in selected states of India.
… Due to bone TB, Rajaram was forced to live with disability. He would be carried by his son for defecating in the open. To avoid this embarrassment Rajaram would eat less so he would defecate once in 2 to 3 days. Today with a toilet in his home, his life has transformed.
…. So also many women, adolescent girls in India eat less and control themselves so that they wait for darkness to defecate in the open; lack of toilets in homes is a threat to their security as well as health.
…Jewelry is often considered most precious to Indian women and she would hold on to it at any cost. But for Pappy, a marginalized rural women from Jahangirpura village in MP, constructing a toilet at home became more important than her jewelry. She decided to mortgage her silver jewelry for building a toilet.
Diarrhoreal diseases result in an estimated 1.8 million deaths each year ( WHO 2005). Among children younger than five years of age diarrhoea accounts for 17% of all deaths ( United Nations 2005). Poor sanitation specifically lack of access to safe toilet impacts on health in three ways;
a) Premature mortality, that is lives of children lost due to diarrheal and related diseases; b) cost of health care ie cost of treatment during episodes of illness which are the result of poor sanitation; c) Productivity losses ie, productive time lost when people fall ill or care-givers look after the sick family members.
Water and Sanitation Program (WSP) of the World Bank has estimated the total annual economic impact of inadequate sanitation in India in 2006 at staggering Rs.2.4 trillion ( 53.8 billion dollars). This economic impact is equivalent about 6.4% India GDP for the reference year ( 2006).
Almost 594 million people defecate open in rural India. If rural India is to be completely free from open defecation, 90 million toilets need to be built over period of four years. Government provides an incentive of Rs 12,000 for toilet as part of Swachch Baharat Mission. If this is minimum required for a single toilet then the total cost of Toilet construction in India is Rs. 1080,000 Million worth business. In Madhya Pradesh alone there is requirement of 8 million toilets to make the state open defecation free. Since the government of India has considered Swachch Bharat Mission (Gramin) a priority and an achievable dream by 2019 there is a scope to develop enterprises around toilet construction and improve the lives of millions of poor in the country.
At present the government of India construct 10 million toilets per year (as per mdws sbm (g) portal 2015-16). If this trends continues it will take 10 years to make India open defecation free. During the 10 years the loss on exchequer by way of cost of medicine and malnourishment will be too high.
The present rate of construction does not help in any way to achieve this and this requires private entrepreneurs to step in. Experience of providing technical support to implementation of Swachch Bharat Mission program in sixteen districts of Madhya Pradesh during the last two and half years, suggests that absence of sustainable supply chain which can deliver a known number of toilet per year is a major constraint. Although the SBM (Gramin) program now provides for the first in the history, to build a complete toilet with superstructure, progress towards achieving full saturation is not satisfactory.
Though the district of Panna set a target to construct 30,000 toilet during financial year 15-16, they have achieved a coverage only of 13,000 (mdws online portal). Not all of these 13,000 toilets which are being built are fully functional because of technical defects in construction. The supply chain presently is fragmented which means that 11 types of materials required to build a complete toilets, each of them have separate supply chain. Therefore, even if in principle, a rural household without toilet can build, in reality going to 11 material dealers and contract a mason and laborers. Even when the panchayat which is the empowered institution takes up the responsibility they too have to follow the similar process. if on the other-hand a supply chain consisting of one stop solution provider is developed, a huge efficiency is resulted in terms of reduced time and cost.
The supply chain involves entrepreneurs as well as skilled and unskilled labourers. Therefore by creating the above supply chain two objectives can be achieved simultaneously- generate employment and encourage small entrepreneurs and improve livelihood options and at the same time achieve improved sanitation coverage. YouthAid Global Services Pvt Ltd ( here after YouthAid.in) proposes to support the government mission to bring a halt to sanitation crisis in the country. Though we are a private limited company our vision is to reduce poverty and inequality and transform people's lives through socio- economic empowerment.
- Challenges to make India Open Defecation Free
Though government is providing incentives through the village panchayat as well as directly through beneficiaries, these incentives are not reaching all. Especially the early adopters of sanitation who built toilets for Rs 500 almost a decade before. They are the poor, Scheduled Caste, Scheduled Tribal, whose toilets are already defunct and are deprived of increased incentives from the government. They are required to be supported through INGOs, Corporates etc to ensure minimum facilities of sanitation. They are more vulnerable to diseases unlike the rich and urban population.
- Leach pit a solution to rural sanitation crisis
The Swachch Bharat Mission (SBM) provides funds as incentive for the low- cost “leach-pit” toilet but proposes that people must build their own toilets as per their own preferences. While this approach appears sound in theory, experience of the last two decades suggests that this “do-it-yourself” approach will not work. In order to achieve the goal of a country free from open defecation in a finite time period (by 2019) an efficient supply chain is absolutely essential. If this supply chain is operated and managed by private sector there will be obvious efficiency. This aspect has been studied recently by the World Bank, and other international agencies (SNV Consultants, Bill & Melinda Gates Foundation, among others) in Asia. Management experts from Deloitte Consultants have been studying the situation and have come up with the concept of “Turn-key solution providers”, who can constitute the supply chain.
The role of private service providers in accelerating rural sanitation program in five Asian countries- Bhutan, Laos, Cambodia, Nepal and Vietnam- has been documented by the IRC and SNV lately, and they draw important lessons from their work. The importance of making risk and investment on Enterprises (SMEs) has to be a core part of a business model for sanitation programming the part of small and medium enterprises.
- Supply chain for toilets in Madhya Pradesh:
In the district of Barwani, there has been delays in constructing toilets lack of materials and trained masons. Volunteers of YouthAid.in stepped by facilitating between community and the suppliers with the help of district administration. This has contributed to make few gram panchayats free from open defecation. The need of the time is to operate in scale. So also I along with a consultant had an action research in supply chain gap analysis in the district of Sehore and there after engagement of private entrepreneurs resulted in 100% target achievements ( mdws sbm portal).
- Our Experience as turn-key solution provider
In Mahad block of Raigad district of Maharashtra YouthAid.in has piloted this with the support of Swades Foundation. Already two Villages have been made saturated with toilets as well as to use them. Though the terrain is hard and difficult to reach masons and labourers are contributing with a team of 20 masons 40 labourers are engaged in constructing toilets since January 2016; this can be scaled up further with additional inputs and support.
- The proposed Business Model
No Business model will be successful because of grant in aid. Therefore this proposal seek the cost of facilitation and technical input cost and probably with a seed fund to initiate the enterprises. While the capital will be raised separately so that make it a viable business model. This proposal therefore focusing to develop a sustainable supply chain. One supply chain in a state is led by YouthAid.in Technical Support Unit facilitating 5 satellite units led by entrepreneurs and each satellite unit will have 10 masons and 20 laborers working in a cluster of 5 and will link to the central unit. These 5 units together will cater to the demand for the toilet in the district or blocks. Based on the progress the requirements of mason as well as labourers can change. YouthAid.in will nurture the central enterprise and through them will identify the entrepreneurs for each satellite units considering various aspects such as their current entrepreneurial capacity, a viable catchment area, logistics such as road conditions and materials market. YouthAid.in will also attach a mentor to support in terms of technical and other monitoring purposes.
The SBM Gramin program provides incentives for houselhold toilets, estimated 80% rural household in the districts will be covered by this. The remaining 20% who are not eligible for incentives need to be supported. Corporate houses and INGOs are now obligatory to provide social development fund and India Sanitation Coalition has been formed with corporate funding to fill similar gaps. These groups along with INGOs are now reaching out to remaining 20% of population. The demand created through the incentives available under the government program supplemented by private sector and INGOs will be serviced by the proposed supply chain. YouthAid.in will help to establish the supply chain and strengthen them in the following ways
a) by providing technical support by building the capacity to build toilet following a menu of technical designs; b) management support by connecting them through the material market, identifying network of masons and unskilled labourers who will actually build toilets at the decentralized or satellite locations; c) marketing support by providing the entrepreneurs and network of masons marketing tools; d) Mason training and finally e) Seed capital- to kick start their operations.
Each of the 5 constituents of supply chain entrepreneurs and 1 centre unit led by YouthAid.in will work with a set of 20 masons and 40 labourers who will be a captive labour force together they will be able to build 120 toilets therefore each supply system will achieve a construction of 720 toilets per month in each supply chain system. The proposed supply system will deliver the following
- One supply chain system led by YouthAid.in and supported by 5 entrepreneurs. This supply system is comprises of 120 masons and 240 labourers ( in which 20 masons and 40 labourers become one unit, including for the central youthaid.in unit).
- Each supply system will have 6 supply points- 1 centre unit plus 5 satellite supply points led by entrepreneurs.
- Each supply system will construct 720 toilets per month and 8,640 will be built per year.
We are proposing 5 supply chain systems ( with total 25 entrepreneurs) who in total will build almost 43, 200 toilet per year. Assuming some system loses we commit 43,000 toilet per year, reaching to 43,000 households ( 5.2 per households) benefiting 2,20,000 population and two years reaching 2,40,000 population.
The incentive available for the standard twin leach pit toilet model complete with super structure is Rs 12000/- Experience of construction through private entrepreneurs suggest that an entrepreneurs profit margin for each toilet can range form Rs 250 to Rs 500 depending on site condition and distance from the market etc. Even if we assume the lower margin of Rs 250 per toilet, the minimum profit that the one supply chain centre will generate estimated at minimum of Rs1.75 million. Each satellite unit ( an entrepreneur) will earn Rs 290,000/. 5 supply chain system will earn a profit Rs. 8 million per year. Beside generating employment for 600 mason for minimum 300 days of work results to 180,000 and 360,000 labour days per year, which means 250 million labour wages alone. Besides this activity will also require substantial amount of material which will also generate employment for a huge rural population.
YouthAid.in Institutional capacity.
YouthAid.in is a starts up incorporated in the Company Act in November 2015 and we have a seven staff and 60 workers presently with a turnover of Rs 2.5 million by end March 2016. We are hopeful to reach Rs.20 million worth company by March 2017. But with this support we can reach new heights as sanitation solution provider in the country. Finally we like to share that we have a very experienced team who have expertise in managing huge sanitation projects in the country. I personally managed 3 million pound project in Madhya Pradesh ( Rs.300 million) to accelerate toilets access in the state during 2014-20016. 2014-15 the state constructed half a million toilets while in 2015-16 the state constructed 1 million toilets ( mdws sbm portal of Madhya Pradesh). A great achievement which I contributed or can attributed to. This project will be another mile stone. Another achievement of mine is to managing a Guinness World Record of 2 million children handwashing for the Panchayat Raj and Rural Development Department of Government of Madhya Pradesh.( see Guinness world record of most people washing had at multiple locations- 2014 October 15)