The total budget of the project is Rs.40.06 crores. The project is funded by Global Environment Facility (GEF) through United Nations Development Programme (UNDP), India Canada Environment Facility (ICEF), Government of India and Government of Karnataka. The sustainability issue beyond the GEF funding phase will be addressed through involvement of private sector, entrepreneurs and NGOs in the operation, maintenance and management of bioenergy systems.
The contribution of various funding agencies is as follows:
Project Period The project was signed on 8th May, 2001. The project period extends upto December 2010.
Project Strategy The project aims at overcoming technical, financial, institutional, information and market barriers to promotion of biomass energy. The project would provide integrated services through decentralised generation and distribution of electricity for catering to various end uses in village areas. This will be done through
The project would develop and promote "marketing of end-use service package" such as irrigation facilities along with improved agricultural technology package coupled with development of skills of endusers, to increase the household incomes. This would enhance the paying capacity of the rural households. The cost recovery models and mechanisms that would be developed by the project would offset investment risks perceived by the private sector, leading to financial sustainability and replication of the bio-energy packages developed by the project.
Project Components The key strategic components of the project are:
Technology Package Standardization
Bio-energy System demonstration
Capacity building to overcome institutional barriers
Enabling activities to address market barriers
Removal of financial barriers
The project would also develop financial and management systems for the post-project period by exploring options such as 'Commercial Bank-Entrepreneur System' and 'Panchayat - Entrepreneurs/NGO' models.