What doesn't interest the state or the market!

West Champaran is a remote district of Bihar – one of the poorest states of India. The region borders Nepal and is the same place where Mahatma Gandhi started his non-violent campaign against the British Empire. Until 2007, Sixty years since India got Independence several villages in this region remained unelectrified. Though availability of electricity in Bihar is in general sporadic, the State Electricity Board considered it non-feasible to provide electricity to these villages around the Gandak river basin due to geographical difficulties. 

In August 2007, however, things changed. A group of friends managed to find a solution to a problem that the state considered outside its competence. A five year long research process culminated in the formation of Husk Power Systems (HPS) that could provide off-grid electricity that used rice husk, a resource that was abundant in that area. The provision of electricity to villages deemed unfit for grid based delivery was a feat in itself but what was more commendable was the vision of a model that was affordable, self sustainable and scalable.

The villagers could buy power from the micro power plants at the same cost or less than their monthly spend on kerosene oil which they used to burn oil-lamps. A solar system is also capable of off-grid electricity provision but in India it is still an expensive option which a select few can afford. The plants generated revenue from the sale of power units as well as sale of CFL bulbs, and utilisation of the rice char for manufacturing incense sticks. This revenue was sufficient to make each plant profitable and this attracted franchisee interest. The profitability of these plants holds special significance in the Indian context given that most State Electricity Boards (SEBs) are loss making. The operation and maintenance of the power plants was relatively simple and the replication was therefore quick. By 2010, 50 plants had been established and HPS targets 2000 plants by 2014.

The case of HPS is no exception, as India develops economically a number of social enterprises are emerging to somewhat reduce the massive deficits in public service delivery. To read more about such enterprises one may look at "Frugal Innovation: Learning from social entrepreneurs in India."