Best Practices under Water &

Sanitation Financing through MFIs to

Individuals & MSMEs

SA-DHAN
Acronyms

APL Above Poverty Line

BPL Below Poverty Line
CLTS Community Led Total Sanitation
CM Chief Minister
CSC Community Sanitary Complex
CSR Corporate Social Responsibility
CT Community Toilets
DWSC District Water and Sanitation Committee
DWSM District Water and Sanitation Mission
GP Gram Panchayat
IHHL Individual Household Latrine
MDG Millennium Development Goals
MFI Microfinance Institutions
MIS Management Information System
NABARD National bank for Agriculture and Rural Development
NGO Non-Governmental Organisations
NRDWP National Rural Drinking Water Programme
OD Open Defecation
ODF Open Defecation Free
PPP Public Private Partnership
PSL Priority Sector Lending
PT Personal Toilets
PWS Piped Water Supply
PC Production Centre
RSM Rural Sanitary Mart
SBM (U) Swachh Bharat Mission (Urban)
SBM(G) Swachh Bharat Mission (Gramin)
SDG Sustainable Development Goals
SHG Self Help Groups
SHPI Self Help Promoting Institutions
ULB Urban Local Bodies
UNICEF United Nations International Children Education
UP Uttar
Fund Pradesh
UT Union Territory
VGF Viability Gap Funding
WATSAN Water and Sanitation
WHO World Health Organization

1
Contents
1. Acknowledgment .................................................................................................................................... 4
2. Executive Summary ............................................................................................................................... 5
3. Fact Sheet ................................................................................................................................................... 9
4. Background of the study ................................................................................................................... 11
4.1 Objectives:-........................................................................................................................................... 12
4.2 Methodology:- ..................................................................................................................................... 12
4.3 Target Respondents:-....................................................................................................................... 12
5. Statistical Analysis & Performance of 5 States on SBM ........................................................ 13
6. Government Incentive Schemes for Toilet Construction..................................................... 14
7. Key Findings/Observation from Field Visit .............................................................................. 15
7.1Toilets and Bathroom Coverage from fields............................................................................ 18
7.2 Status of toilets Govt v/s field:- .............................................................................................. 1918
7.3 Reasons for lack of toilets ......................................................................................................... 2019
7.4 Types of Toilets ............................................................................................................................. 2120
7.5 PWS & Access to Water .............................................................................................................. 2221
7.6 Aspiration of Rural Area Population ......................................................................................... 23
7.7 Benefits of toilets/sanitation ................................................................................................... 2423
7.8 Water and Sanitation related MSME:- ...................................................................................... 25
8. Financial Inclusion for WATSAN (Dec 2018-Jan 2019) ...................................................... 2726
8.1 Toilets:- ............................................................................................................................................. 2726
8.2 Bathroom Facility:- ...................................................................................................................... 2827
8.3 Water Resource:- .......................................................................................................................... 2928
8.4 Future Sanitation Market:- ....................................................................................................... 3029
9. Observations from interacted Financial Institutions:- ......................................................... 3230
9.1 Small Finance Bank:- ................................................................................................................... 3230
9.2 NBFC:- ............................................................................................................................................... 3433
9.3 Microfinance Institutions:- ....................................................................................................... 3534
9.4 Presence of MFIs State Wise:- ................................................................................................. 3635
9.5 Projection for MFIs for WATSAN:- ........................................................................................ 3837
10. Key Challenges & Recommendations........................................................................................ 4139
11. Best Practices ...................................................................................................................................... 4645
12. MSME Opportunities ........................................................................................................................ 5150

2
List of Tables
Table 5.1: Statistical Analysis of 5 States................................................................13
Table 5.2: SBM Performance of 5 States ................................................................. 14
Table 7.1 : Portfolio details of visited MFIs ...........................................................16
Table 7.2: Details of visited districts, no of groups & clients ..............................17
Table 8.1: HH without toilets and funds requirement .................................... 2827
Table 8.2: HH without bathroom & funds requirement.................................. 2928
Table 8.3: Funds required for water resources .................................................3029
Table 8.4: Future sanitation market .................................................................... 3130
Table 8.5: Total funds requirement in 5 states ..................................................3130
Table 9.1: Utkarsh SFB portfolio ......................................................................... 3332
Table 9.2: Presence of MFIs state wise ...............................................................3635
Table 9.3: Projection of MFIs for Toilets, Bathroom & Water Resources
.................................................................................................................................. 3937

List of Charts
Chart 7.1: Toilets & Bathroom coverage from fields ............................................18
Chart 7.2: Status of toilets Govt v/s Field .............................................................19
Chart 7.3: Reasons for lack of toilets ...................................................................... 20
Chart 7.4: Types of toilets.........................................................................................21
Chart 7.5: PWS & access to water ...........................................................................22
Chart 7.6: Aspiration of rural population ..............................................................23
Chart 7.7: Benefits of toilets/sanitation ................................................................. 24
Chart 9.1: Industry Portfolio ................................................................................3635
Chart 9.2: Share of non income generation loans……………………………… 36

3
1. Acknowledgment
Sa-Dhan is taking this opportunity to express its gratitude and regards to
the non-government organisations and individuals for their priceless
contributions in successful completion of the study on “Best Practices
under water and sanitation through MFIs to Individual and MSME”. The
study objective was to find out the best practices under ambit of water and
sanitation in Rajasthan, Odisha, Bihar, UP and Tamil Nadu.

This Study Report is an embodiment of the unconditional support & trust

placed collectively on Sa- Dhan by FINISH Society. Sa-Dhan extends its
special thanks to FINISH Society for entrusting on us to carry out this
study and to contribute towards an ODF country. It is also a testimony of
relentless efforts invested by team members of Sa-Dhan at various stages
of undertaking the study.

We are especially grateful and extend our sincere thanks to each of the
representatives of Government, NABARD, SIDBI, SRLM, Banks, NBFC,
NBFC MFIs, NGO and clients who has contributed to this study with their
valuable inputs and guidance. Their unconditional support has played an
instrumental role during technical review, data collection, interviews, and
other stages of the assessment study.

We also thank the researchers who have contributed for the sector in past
and their published reports and articles have been valuable source for this
study. Special thanks go to the efforts by my team members and respected
consultants for their valuable contribution in designing the concept,
facilitating research work and for editing, reviewing and supporting in the
publication of the study.

The views expressed herein are conclusions drawn from the findings of the
study, and do not necessarily reflect the views of Sa-Dhan and FINISH
Society.

P. Satish
Executive Director

Sa-Dhan - Association of Community Development Finance Institutions

4
 2. Executive Summary

The Sustainable Development Goal sets ‘ensuring availability and sustainable

management of water and sanitation for all’ as one of the goals for the global
development agenda spanning from 2015-30. Indian government’s focus on
water and sanitation gained momentum under the ‘Swachh Bharat Mission’
which started in 2014. The Swachh Bharat Mission aims at achieving total
sanitation by 2019.

“Swachh Bharat Mission” is one of the national flagship programmes of India.

Under this programme Government of India (GOI) is aiming to become Open
Defecation Free (ODF) by Oct 2019. India is very close in achieving the target
with regards to Individual Household Latrine. During the Launch of the SBM
on 2nd October’2014, the coverage was 38.70% and currently, the
achievement is 98.78%. In numbers, 9, 19, 36,877 toilets are constructed,
5,47,113 Villages, 600 Districts and 27 States/UTs become Open defecation
free. Commented [D1]: Data source ?

The Swachh Bharat Mission hopes to make India open-defecation free by

October 2019. But, despite the rush in the construction of toilets since the
scheme’s launch, India has the highest rate of open defecation in the world.
According to a new study by the World Bank, 48% of Indians continue to
defecate in the open—much higher than what the government’s official
records say. According to the latest NSSO survey, 33% of people in rural India
and only 4% in urban India defecate in the open.1

In order to understand the subject in details, Sa-Dhan conducted a study to

find out the "Financing and Best practices in Water and Sanitation Financing
through MFIs and presence/possibilities of MSME". This study was
conducted in joint collaboration with Sa-Dhan and FINISH Society.

Institutions involved in the Study:-

The study is a result of collaboration of institutions namely Sa-Dhan and

FINISH Society. A brief profile of the organizations is given below:

1https://www.livemint.com/Politics/ckG4i9oTywwSi7ML5cXfXI/Swachh-Bharat-Still-not-quite-
shows-a-World-Bank-study.html

5
Sa-Dhan came into being on July 21, 1999 with a mission to build community
development finance in India. It helps its member and associate institutions to
better serve low-income households, particularly women, in both rural and
urban India, in their quest for establishing stable livelihoods and improving
quality of life. Sa-Dhan, one of the oldest and largest national associations of
community development finance institutions in the country, has also been
recognized as a Self-Regulatory Organization (SRO) for Non-Banking
Financial Companies - Microfinance Institutions (NBFC-MFIs) by the Reserve
Bank of India.

FINISH society was registered in 2010 as a multistate not for profit

organization under Societies Registration Act 1860 to help implementing the
project and to strengthen the initiative linking it to better hygiene,
environment, enterprise development and waste management. The objective
is to improve quality of life by providing increased access to safe sanitation
integrated with financial inclusion, health care and waste management,
leading to a better quality of life for all. The FINISH project involves around
60 Public and private partners in 10 states of India, led by FINISH Society
and WASTE.

For the study, the target respondents were officials from different and related
government departments, financial institutions like banks and microfinance
institutions, households that have facilities of water and sanitation and
households that don’t have such facilities; and development organizations
like NGOs/ SHPIs.

Statistical Performance
In terms of meeting the national averages on parameters like ODF Villages,
IHHL, and PWS, Tamilnadu and Rajasthan are the top performing states
among the five states studied. Uttar Pradesh and Bihar are the lagging behind
substantially in all three parameters.

Rajasthan and Tamilnadu have recorded 100% coverage in both IHHL & ODF
villages as against the target and with a highest population with PWS almost
52%. Bihar, Odisha and UP are between 75-93% in IHHL & 42-77% in ODF
villages with an abysmal performance in PWS with only 11-47%.2

2 https://swachhbharatmission.gov.in/sbmcms/index.htm

6
MSME Opportunities
There is a huge appetite for WATSAN and there are ample opportunities
available for MSMEs and entrepreneurs to set up new businesses keeping in
mind the future and present demands created by WATSAN.

MSMEs and entrepreneurs can look at establishing an inventory business to

supply the raw material required in construction, supply of quality and
trained masons, or training to masons. Single pit construction is the majority
model present as of now, which in near future would require
service/demand of cleaning the pits.

Subsequently, there is a huge demand for the rural areas on safe drinking
water, this could be capitalised by the MSMEs and entrepreneur to develop a
production and service delivery of low cost water purifiers.

Field Observations
During the meeting with different departments of SBMs, it clearly came out
that making ODF was a very high priority agenda of all the Govt. The mission
is also involving NGOs as facilitators in monitoring the construction and
maintenance of toilets. During interaction with Government representative of
Rajasthan, UP and Tamil Nadu Government are associating with NGO to
achieve the mission.

Piped water supply and access to water at home has come out to be the one of
the biggest constraints for successful implementation and overall behaviour
change in the community. Due to shortage of water people avoid to use
toilets. This is sighted as one of the biggest constraints & challenge. This
challenge is highlighted by 50% of the respondents.

One of the key concerns stated by community members is the low and sub
standard quality of construction. It is also observed that people are not aware
about the model that will be sustainable in future. To construct sustainable
toilets there is need to provide training to mason on scientific toilets and its
construction. There is a need for proper quality control mechanism to check
the quality of toilets rather than quantity. Involvement of area specific NGOs
would be beneficial. The current regime of construction of toilets is being
pushed and ran by the Gram Panchayats and they have played key role in
achieving the numbers.

7
Although the WASH product is categorised under Priority sector lending still
the banks seemed averse to the idea of providing term loans to the MFIs for
water and sanitation programmes, as these are not income generating
activities. Banks, have also stated that there is no clear instructions/guidelines
for the same neither there is much demand from MFIs for sanitation loans.

Few MFIs who are already having WATSAN product, they approached to
few banks for term loan but unable to succeed. Banks are not comfortable to
provide term loans to MFIs as it is non-income generating. MFIs feels that
WASH could be good product with a traction/demand of up to 15-25% of its
current clientele. Even MFIs are not aware about the potential of funding
opportunity in this sector.

The villagers were generally happy to follow proper sanitation practices, and
could understand the link with reduction in diseases and health problems in
the community. Also, the community feels that with toilets available at home,
women safety and security have improved. The key challenge that the
beneficiaries face are unavailability of upfront funds for construction of
toilets. In some villages, few people are also finding difficult to change old
sanitation habits and need substantial orientation and guidance.

The poverty level in rural areas was found to be quite high in U.P, Bihar and
Orissa and majority of the members had Kutcha households. The priority of
villagers came out clearly as housing and employment. Sanitation and toilets
come somewhere after that.

The villages where SHPIs are working showed very good results in terms of
ODF villages as compared to villages where there are no SHPI interventions.
The challenge of SHPIs is no support and funding from the government in
implementing the programme. Some SHPIs who have donor funding are able
to implement the programme well. One of the key concerns that can be
highlighted is the quality of toilets construction and awareness and lack of
continuous orientation and motivation programmes in the villages, which
will encourage the villagers to use toilets sustainably.

8
 3. Fact Sheet

Rajasthan:-

As per census 2011, population of Rajasthan is 6.86cr in 33 districts. In March

2018, Rajasthan declared as ODF by the Government. During study, the Sa-
Dhan team visited 2 districts of Rajasthan and interacted with 2 NBFC MFIs
(Midland Microfin and Digamber Capfin) along with 98 clients. At that time,
we came to know that 28% of people still don’t have toilet and 15% don’t have
bathroom in their premises. Apart from that 61% of clients have constructed
single pit which shows in future there will be immense demand from the field
to construct another pit or to clean existing pit.

Currently, Govt is working with entrepreneur to provide safe drinking water

to the villagers through installing commercial RO plants. Apart from that
Govt is seeking application from GP to develop SLWM plant at GP level to
generate income from garbage.

Odisha:-

According to census 2011, population of Odisha is 4.19 cr. in 30 districts.

During the study, team visited 3 districts of Odisha and interacted with 2
MFIs (Annapurna Microfinance (NBFC MFI) and Gram Vikas (NGO)). along
with 109 clients. In Dec 2018, according to Govt data 75.26% of individual
households are having toilets but as per our field observation 69.70% are
having toilets and 39.44% are having bathroom facility in their premises.
Other than that 82% of respondents have constructed single pit that shows in
coming years these pits going to be filled and immense demand will be
generated from field. In few areas where water level is high there pit will be
filled in very short span of time. That time there will be huge demand for
fecal sludge management from field.

As a best practice, to motivate the marginalized people and reaping the

importance of toilets and safe drinking water, Annapurna does regularly
awareness campaign along with testing of water quality.

Gram Vikas is working with Govt and overseas agency towards achievement
of Swachh Bharat Mission with the support of Grant Fund. Gram Vikas
according to their survey choose the geography and provide complete
package of basic amenities to clients that include twin pit toilet, bathroom and
piped water supply in toilet and kitchen.

9
Savadha is working as networking solution for entrepreneurs and clients to
provide an online platform to get all materials related to construction of
toilets and bathrooms.

Bihar:-

As per census 2011, population of Bihar is 10.41cr in 38 districts. During the

field visit, team visited 3 districts of Bihar along with 3 MFIs and 107 clients.
As per Govt data in Jan 2019, 99.78% of Individual Households are having
toilets in their premises but in the field 50% of households are having toilets
and only 21% are having bathroom in their premises. Apart from that 10% of
people constructed single pit and rest constructed double pit and septic tank.

Jeevika has been developed rural sanitation mart in villages to provide all
sanitary material at common place.

UP:-

According to census 2011, population of UP is 19.98cr. in 75 districts. During

the visit, team visited 7 districts of UP along with 2 MFIs and 156 clients. As
per Govt SBM data in Jan 2019, 93.71% individual households are having
toilets in their premises. On the other hand, during interaction with clients we
observed that 73% of households are having toilets and 40% of households
are having bathroom in their premises. Apart from that 38% of clients have
constructed single pit.

Cashpor is a Not Profit MFI, it is not only providing WASH loan but they are
also doing the capacity building of clients towards hygiene.

Sharamik Bharti is working as SHPI and it is spread awareness towards

building of scientific toilets through CLTS approach. Apart from that with the
support of SHG leader keep monitoring towards construction of toilets.

Utkarsh Small Finance Bank is providing finance support to clients for

construction of toilets and to check the loan utilization, they have developed a
separate questionnaire to check the end use of fund.

Tamil Nadu:-

As per census 2011 population of Tamil Nadu is 7.21cr in 31 districts. During

the visit, team visited 5 districts and 5 MFIs along with 133 clients. As per
Govt Tamil Nadu has declared as ODF but during the visited we came to
know that only 69% people are having toilets and 52% are having bathroom
facility in their premises. Apart from that 27% of people constructed 27%
toilets in single pit.

10
Tamil Nadu SRLM has identified community resource person from villages to
do the capacity building programme to enable them as a motivator.

WATSAN is a Chennai based Small Entrepreneur, since inception of the

water purifier unit; WATSAN is committed to deliver quality of drinking
water and sanitary requirements with eco-friendly resources at an affordable
price tag.

4. Background of the study

The Sustainable Development Goal no. 6 3 sets ‘ensuring availability and
sustainable management of water and sanitation for all’ as one of the goals for
the global development agenda spanning from 2015-30. It is estimated that
unsafe water and a lack of basic sanitation and hygiene every year claim the
lives of more than 1.5 million children under five years old from diarrhea 4. At
any given time close to half of the urban populations of Africa, Asia, and
Latin America have a disease associated with poor sanitation, hygiene, and
water.5 Despite India’s commitment to SDG, its rank, on WHO/UNICEF Joint
Monitoring Programme index on this parameter is an appalling 1556 out of
the 183 countries surveyed in 2015. In fact, India’s rank was even worse than
its neighbouring countries.

“Swachh Bharat Mission” is one of the national flagship programmes of India.

Under this programme Government of India (GOI) is aiming to become Open
Defecation Free (ODF) by Oct 2019. India is very close in achieving the target
with regards to Individual Household Latrine. During the Launch of the SBM
on 2nd October’2014, the coverage was 38.70% and currently, the
achievement is 98.78%. In numbers, 9, 19, 36,877 toilets are constructed,
5,47,113 Villages, 600 Districts and 27 States/UTs become Open defecation
free.

The Swachh Bharat Mission hopes to make India open-defecation free by

October 2019. But, despite the rush in the construction of toilets since the
scheme’s launch, India has the highest rate of open defecation in the world.
According to a new study by the World Bank, 48% of Indians continue to

3 1http://www.sdgfund.org/mdgs-sdgs, accessed on 9/2/2018

4 https://www.who.int/news-room/detail/12-07-2017-2-1-billion-people-lack-safe-drinking-
water-at-home-more-than-twice-as-many-lack-safe-sanitation
5 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2981586/
6 2https://www.indexmundi.com/facts/indicators/SH.STA.ACSN/rankings, accessed on 9/2/2018

11
defecate in the open—much higher than what the government’s official
records say. According to the latest NSSO survey, 33% of people in rural India
and only 4% in urban India defecate in the open.7

In order to understand it in detail Sa-Dhan conducted a study to find out the

“Best practices in Water and Sanitation Financing through MFIs to
individuals and MSME in Bihar, Orissa, Rajasthan, Tamil Nadu & Uttar
Pradesh”. This study was conducted in joint collaboration with Sa-Dhan and
FINISH Society.

4.1 Objectives:-
Purpose of the study was to understand the best practices for water and
sanitation financing through microfinance institutions for individuals and
MSME. In particulars objectives of the study were following:-
 To understand the financial gap in Rajasthan, UP, Orissa, Bihar and
Tamil Nadu to become ODF and adequate with piped water supply.
 To do situational analysis – Govt. data vs on the ground situation
 To understand ODF+ – Additional need and resources
 To understand Behavior – Perspective of clients, predominant support
and gaps
 To understand Infrastructure – Available business ecosystem
(including facilitative factors and challenges) and probability of
promotion of MSME through MFIs

4.2 Methodology:-
The study embraces of primary and secondary research. To initiate the study
we followed following parameters:-

 Development of study framework with questionnaire.

 Selection of respondents.
 Interaction with different stakeholders,Sample selection, data
collection and analysis.
 Drafting and finalization of report.

4.3 Target Respondents:-

For the study Sa-Dhan’s team interacted with following respondents to
understand the ground situation in achievement of “Swachh Bharat Mission”.

7https://www.livemint.com/Politics/ckG4i9oTywwSi7ML5cXfXI/Swachh-Bharat-Still-not-quite-
shows-a-World-Bank-study.html

12
  Government Official viz Swachh Bharat Mission – Urban & Rural,
Public Health Engineering Department, SIDBI, SRLM, NABARD. (In
all the states)
 Banks: - State Bank of India, UCO Bank, Bank of Baroda, BOI,
Syndicate Bank, PNB, Utkarsh (SFB) and few other State Run Banks
 NBFC:- Ess Kay Fincorp Ltd., Magma Fincorp Ltd, Finova Capital
Pvt. Ltd.
 NBFC MFI:- Midland Microfin Ltd., Digamber Capfin Ltd. Sonata
Finance Pvt. Ltd, Cashpor Micro Credit, Sramik Bharti, Arohan
Financial Services Pvt. Ltd., Saija Finance Pvt. Ltd., Annapurna
Finance Pvt. Ltd., Bharathi Women Development Centre (BWDC),
Mahasemam Trust, Asirvad Microfinance Pvt. Ltd., SMILE
Microfinance Ltd., People’s Action For Transformation (PAT) and
BWDA Finance Ltd
 Households and Entrepreneurs

5. Statistical Analysis & Performance of 5 States on SBM

(Dec 2018- Jan 2019

Table 5.1: Statistical Analysis of 5 States

States Population Urban Rural Districts Rural

(Census Population Population Households
2011) Cr. (Cr.) (Cr.) (Cr.)

Rajasthan 6.86 1.71 5.15 33 1.04

Odisha 4.19 0.70 3.49 30 0.79

Bihar 10.41 1.17 9.23 38 1.55

UP 19.98 4.45 15.53 75 2.49

Tamil 7.21 3.49 3.72 31 0.94

Nadu

13
 Table 5.2: SBM Performance of 5 States

National
Tamil
Indicators Rajasthan Odisha Bihar UP Av. (FY
Nadu
18-19)
IHHL 100% 75.26% 99.78% 93.71% 100% 98.10%
ODF
100% 42% 61% 77% 100% 92%
Villages
Population
51.75% 46.37% 11.71% 15.64% 99.19% 54.39%
with PWS
Source: SBM Website8,9

In terms of meeting the national averages on parameters like ODF Villages,

IHHL, and PWS, Tamilnadu and Rajasthan are the top performing states
among the five states studied. Uttar Pradesh and Bihar are the lagging behind
by a long distance in all three parameters.

Rajasthan and Tamilnadu have recorded 100% coverage in both IHHL & ODF
villages and with a highest population with PWS almost 52% in Rajasthan
and 99.19% in Tamil Nadu. Bihar, Odisha and UP are between 75-99% in
IHHL & 42-77% in ODF villages with an abysmal performance in PWS with
only 11-46%.

In terms of achievement of “Swachh Bahart Mission” Rajasthan and Tamil

Nadu are already declared as ODF. ODF is done through a three-stage
process involving intradistrict, interdistrict and state verification. Experts
associated with SBM believe this is expected to take almost six months. After
that every six months the process repeat and if ODF states fail in any
parameters then ODF certification will get cancel. Therefore, on continues
basis Government has to keep their eyes open to maintain the standard in
ground.

6. Government Incentive Schemes for Toilet Construction

As per the SBM (Gramin)10 guidelines, incentive amount provided to Below

Poverty Line (BPL) /identified APL households shall be up to INR.12000/-

8 https://sbm.gov.in/sbmReport/Report/Physical/SBM_VillageODFMarkStatus.aspx
9

https://indiawater.gov.in/IMISReports/Reports/Physical/rpt_RWS_PWSPopulation_S.aspx?Rep
=0&RP=Y

14
for construction of one unit of IHHL and to provide for water availability
including storage for hand-washing and cleaning of the toilet. It is important
to note that the aim of the incentive is not to cover the full cost of the toilet but
to facilitate a positive change in community behaviour, for people to
undertake construction of toilet on their own.

As per the original guidelines in 2014, Central Share of this incentive for
IHHLs from Swachh Bharat Mission (Gramin) was 75% and the State share
was 25%. However in Oct 2017, the guidelines were revised and now the
Central Share of this incentive for IHHLs from Swachh Bharat Mission
(Gramin) shall be 60% and the State share will be 40%.

All financial incentives (government and /or private) for this component will
be deposited directly (by electronic clearing service) into the bank accounts of
the beneficiary households (including accounts opened under the Pradhan
Mantri Jan Dhan Yojana). No cash/ cheque disbursals shall take place. The
Panchayats at village level and ULBs in urban areas should ensure that
financial incentives to beneficiary households are transferred in a timely and
hassle-free manner. Further, there is a provision of Revolving Fund at the
District level from the SBM (G) funds11. The Revolving Fund may be given to
Societies, Self Help Groups or other groups as decided by the States, whose
credit-worthiness is established for providing cheap finance to their members,
for the construction of toilets. Loan from this fund should be recovered in 12-
18 installments. States have the flexibility to decide other terms and
conditions for sanction of the Revolving fund. This Revolving Fund can be
accessed by APL households not covered by incentives under the guidelines.
Households which have availed incentives under any earlier sanitation
scheme can also access such finance as loans. Those households (BPL and
APL) covered under the incentive can also approach for financing under the
Revolving Fund to meet the additional cost of improved toilets with bathing
facility.

7. Key Findings/Observation from Field Visit

The following table shows details of portfolio and clients out reach of MFIs
and areas visited. It should also be noted that the study in different states
were conducted in different months ranging from February 2018 to January
2019, so the data represented in the report is of the time during the visit.

10 Swachh Bharat Mission-Rural revised Guidelines -

http://www.mdws.gov.in/sites/default/files/SwachBharatGuidlines.pdf, accessed on 9/2/2018
11

http://swachhbharatmission.gov.in/SBMCMS/writereaddata/images/pdf/Guidelines/Complete-
set-guidelines.pdf

15
Respondent MFIs

Table 7.1: Portfolio details of visited MFIs

State Name of MFIs Legal GLP Client

Form (Cr) Outreach
(lakh)
Midland Microfin Ltd. NBFC-MFI 461 2.67
Rajasthan Digamber Capfin Ltd. NBFC MFI 316.5 1.59

Annapurna Microfinance NBFC-MFI 2354 13.83

Odisha
Pvt. Ltd.
Arohan Financial NBFC-MFI 3274 16.04
Services
Bihar Saija Finance Pvt. Ltd NBFC-MFI 472.15 3.21

Sonata Finance Pvt. Ltd NBFC-MFI 1316.56 7.10

Cashpor Sec -8 1919.2 8.43

UP
Shramik Bharti SHPI 30 0.4

BWDA Finance Ltd NBFC MFI 33.44 0.15

Asirvad Microfinance NBFC 3195.15 16.66

Pvt. Ltd. MFIs

Bharathi Women Society 24.84 0.22

Tamil Nadu Development Centre
(BWDC)
SMILE Microfinance Ltd. NBFC MFI 426.02 2.91

People Action For Trust 64.94 0.37

Transformation (PAT)

16
Name of states and districts visited along with MFIs, Groups and Clients

Table 7.2: Details of visited districts, no of groups & clients

Groups No. of
State(s) Districts Name of Districts MFIs (JLGs/ Clients
SHGs) interacted
Rajasthan 2 Jaipur & Jhunjhunu 2 6 98
Trichy, Thiruvarur,
Tirunelveli,
Tamilnadu 5 5 10 133
Villupuram &
Cuddalore
Khorda, Cuttak &
Odisha 3 2 10 109
Puri
Patna, Darbhanga &
Bihar 3 3 7 107
Muzaffarpur
Kanpur,
Maharajganj,
Sultanpur,
UP 7 4 15 156
Sonbhadra,
Mirzapur, Varanasi,
Sitapur

Total 20 16 48 603

17
7.1Toilets and Bathroom Coverage from fields

Chart 7.1: Toilets & Bathroom coverage from fields

Bihar 21%
50%

UP 48%
73%

Odisha 39.44% Bathroom

69.70%
Toilets

Tamil Nadu 52%

69%

Rajasthan 85%
82%

0% 20% 40% 60% 80% 100%

The findings from the field are also indicating the similar trends as shown in
the overall statistical state performances mentioned above. The team observed
and noticed around on an average SBM has coverage ranging from 50-82%.
Rajasthan with highest coverage followed by, Odisha and UP.

The team also looked at the construction and usage of bathrooms along with
toilets. In four states Tamil Nadu, UP, Odisha and Bihar the ratio of
bathrooms ranging from 21%-52% with an exception of Rajasthan where
construction of bathrooms exceeds construction of toilets.

This indicates that bathrooms have emerged as a strong requirement and

need of the community.

18
7.2 Status of toilets Govt v/s field:-

Chart 7.2: Status of toilets Govt v/s Field

120%

100% 100%
100% 94%
82% 81%
80% 75% 73%
70% 69%

60% Govt. Status

50%
Field Status
40%

20%

0%
Rajasthan Orissa Bihar UP Tamilnadu

According to the Government data, in Rajasthan and Tamilnadu all the individual
households are having toilets in their premises. However, during interaction with
clients we came to know that still there are few people who don’t have toilets in the
premises. Above graph clearly shows that in every state there is huge gap between
Government data and filed data.

For Swachh Bharat Mission, Government has done base line survey in 2012 and
based upon that survey target has been achieved. After 2012, population has
increased, families got split so the family level requirement has increased; also many
people were not enlisted as they got migrated during the time of survey. Therefore,
this is also the possibilities of the gap.

However there is a genuine disclaimer that because of constraints in time and

resources, Sa-Dhan’s team could visit in 20 districts of 5 states and interacted with
603 clients so it is not possible to generalize the findings. Despite of the possibilities
of difference in percentages of achievement, we observed the gaps in between
demand and supply. Sa-Dhan is quite hopeful that the good objectives of Swachh
Bharat Mission can be always being achieved if the different stakeholders work
together.

19
7.3 Reasons for lack of toilets
Chart 7.3: Reasons for lack of toilets

0%
Tamilnadu 5%
95%

15%
UP 11%
74%

20% Prefer Going Out

Bihar 10%
60% Space

7% Reason Money
Orissa 3%
90%

10%
Rajasthan 13%
77%

0% 20% 40% 60% 80% 100%

Availability of funds/finance is sighted to be the biggest reason attributed to

not having a toilet with percentage of people responding as high as 79.2%
with range of 60-95%. The respondents said that they would like to build the
toilets but they are not in the position to finance or fund it.

Second reasons for not having toilets is space constraints wherein Rajasthan
stated it to be 13% followed by Bihar and UP at 10 -11%. In Odisha and Tamil
Nadu the percentage is very low at 3-5%. Thirdly, prefer going out is stated to
be the next reason wherein Tamilnadu stated it to be at 0%, UP & Bihar
reported to have 15% and 20% respondents in this category followed by
Rajasthan and Odisha at 10% and 7% respectively.

20
7.4 Types of Toilets
Chart 7.4: Types of toilets

40%
Tamilnadu 33%
27%

0%
UP 62%
38%

38% Septic Tank

Bihar 52%
10% Double Pit

11% Single Pit

Orissa 8%
82%

27%
Rajasthan 5%
61%

0% 20% 40% 60% 80% 100%

While the govt. is advocating for the twin pit toilets but approx 44% of the
toilets in 5 states are single pit toilets, out of which Orissa and Rajasthan are
leading with 82% and 61%, while Up and Tamil Nadu are 38% and 27%. Only
Bihar reported to have 10% single pit toilets which is very less comparing
with other states. Commented [D2]:
Rajathan and Odisha are 82% and 61% single pits? In the
next para the respective Twin pits are 5 – 8%. What are
The respondents also stated that they prefer and in future also would opt for the balance?

one pit toilets, on account of space and cost. Also 44% single + 32% twin balance?

On the other hand 32% of respondents constructed twin pit toilets in 5 states,
leading with UP at 62%. While in Rajasthan and Orissa twin pit toilets are 5-
8%. Similarly, on an average 23% of respondents constructed toilets with
septic tank.

21
7.5 PWS & Access to Water

Chart 7.5: PWS & access to water

23%
Tamilnadu 0%
77%
77%
52% Community Water
UP 45%
3%
48%
40% Personal Bore Well/ Hand
Bihar 40% Pump
20%
60%
Piped Water
36%
Orissa 34%
30% Water in house
64%
11%
Rajasthan 0%
89%
89%

0% 20% 40% 60% 80% 100%

Access to water was one biggest challenge identified by the respondents, in

almost all the studied villages or urban slums. The respondents stated that
only during the rainy season and for following 2-3 months water availability
is good. In the case of piped water supply in villages, the team observed that
there is focus of the government to increase the outreach.

Only 55% of population reported to have piped water supply. The maximum
is in Rajasthan (89%), followed by Tamilnadu (77%) and then Odisha (30%).
The situation in UP and Bihar is worst with only 3% and 20% population
having piped water supply.

Piped water supply stated to be the biggest constraints and priority all the
segments of population.

Respondents stated to have water facility at home again with Rajasthan at

89% followed by Tamil Nadu (77%), Odisha (64%), Bihar (60%), with UP
being reported abysmally low at only 48%.

Due to scarcity of water people avoid to use toilets as they don’t want to flush
out the precious water in toilet. From other discussions the team also noticed
that clean drinking water is the first priority in terms of the most needed

22
facility of villagers. Sanitation and toilets were secondary to access to clean
drinking water.

7.6 Aspiration of Rural Area Population

Chart 7.6: Aspiration of rural population Commented [D3]: Rajasthan water data missing

70%
61%
60%
49%
50%
40%
40% 35% Toilet
34%
32%
28% 29% Bathroom
30%
24%
21% Water
20% 16% 16%
10% 10%
10%
0%
0%
Rajasthan Orissa Bihar UP Tamilnadu

Around 24% populations are interested in availing loan facility for

construction or improvement of toilets while 34% of respondents expressed
the aspiration of having bathrooms along with toilets followed with 23% are
interested in water resources. Tamil Nadu and Odisha respondents have
shown more interest in bathroom constructions while Rajasthan and Bihar
have shown more interest in toilet construction. The respondents of
Tamilnadu were specifically shown interest in improving the quality of toilets
and renovation.

It is interesting to note that while 79% of the respondents stated lack of funds
as the major constraint for not constructing toilets of which 80% showing
interest in availing facility of finance for toilets, bathroom and water
resources. This is an indication and proxy for a need to develop specific
sanitation financing products.

23
 7.7 Benefits of toilets/sanitation

Chart 7.7: Benefits of toilets/sanitation

Benefits & Awareness of Toilets

70%
63%
Awarenss of Model 63%
33%
17%
80%
100%
Awareness of subsidy 100%
80%
53%
65%
45%
Awareness of WASH 26%
30%
84%
100%
70%
Women Safety 33%
80%
86%
60%
40%
Reduction in Medical Exp 80%
50%
71%

Tamilnadu Odisha UP Bihar Rajasthan

83% of respondents were aware about the subsidy scheme of the government
with Odisha and UP reported to 100% awareness on the same. The least
awareness on the subsidy observed in Rajasthan which is in contrast with
100% coverage in IHHL and ODF. 60% of respondents associated reduction in
medical expenditure as the benefit of better sanitation facilities (toilets) with Commented [D4]: Is there any quantification ?
70-80% of respondents in UP and Rajasthan associating with the same and 40-
50% respondents in Odisha & Bihar.

Women safety surfaced as the biggest benefit associated with toilets &
bathrooms. Around 74% of respondents associated women safety with toilets
with only UP as an exception where on 33% of respondents associating with
women safety & toilets.

24
Only 50% of respondents stated to be aware about the WASH products. Commented [D5]: What WASH Products ?
Rajasthan shown 84% respondent being aware followed by Odisha 45% Bihar
30% and UP 26%.

Odisha and UP shown 63% respondents were aware about the awareness of
the models of toilets. Followed by Bihar 33% and Rajasthan only at 17%.

However, it is also important to state that the villagers were mostly not
satisfied with the quality of construction and also it took time to get the toilet
constructed. Many of the beneficiaries whom the team visited had incomplete
toilets with no or very poor quality doors, no cover on the tank, no roof on the
toilet etc.

7.8 Water and Sanitation related MSME:-

SVADHA12: - Ecosystem for online trading of WATSAN products developed

by an NGO Svadha in Odisha. It is coordinating with MSMEs, shopkeepers
and customers to provide services on WATSAN with less or no middleman. It
also does research on the best suitable models keeping in view local
geographical and climatic conditions.

Svadha started WATSAN online portal 5yrs ago. Currently their turnover is
8cr. with 34 manufacturer and 700 retailers at semi urban. To establish this
kind of portal initial cost would be required around 10cr. and to make it a
viable model Svadha does charge 5-7% of transaction value as commission
from clients.

WATSAN 13 :- WATSAN is a Chennai based Small Entrepreneur, Since

inception of the water purifier unit, WATSAN is committed to deliver quality
of drinking water and sanitary requirements with eco-friendly resources at an
affordable price tag.

They promote a low cost water filter which can also address areas specific
water issues like fluoride and iron content. The water filter is CSIR,
Department of Science and Tech, CIPET and BIS certified. The water filter
doesn’t need electricity and is maintenance free. The cost of water filter is
around Rs.1100.Every month about 1500 water filters are supplied. They have
operations in 18 States and operate through NGOs.

12 http://www.svadha.com/
13 http://watsan.in/water_filters.html

25
They recently applied for loan for Rs.3 Cr but got approval only for 20 lakhs,
so they didn’t take it. They feel rate of interest offered by Banks is high and
therefore, unless credit is provided in concessional rates, they won’t borrow.
They are willing to partner with MFIs to promote access to safe drinking
water.

According to Government norm if population of a ULB cross 1lac then there is

a provision of sewer line. In absence of sewer line, in urban areas people
construct septic tank or twin pit. It clearly shows that in future there will be a
need to clean these pit. To clean these pits people are demanding Rs. 1500-
2000.

During interaction with clients research team observed that majority of

people constructed single pit toilets that will get filled in 4-5 years. After that,
there will be enormous demand in the market to clean those pits or
construction of new pit. During discussion with respondents, we find out that
in rural areas very less entrepreneur are working to clean the pit. Therefore,
existing people charge up to Rs. 2000 from the clients to empty the pit. Any
entrepreneur who really wants to work in this area needs to invest
substantially approx Rs. 7-8 lakh if the person wants to buy new tanker else if
he goes with second hand tanker then the cost would be approx Rs. 2.5-3lakh.

Above graphs are showing that there is huge demand available in the market Commented [D6]: Which one ?
to construct new toilet, retrofitting, bathroom construction etc. Therefore,
there is a scope available in the market for traders to open the shop in rural
and urban areas to provide the materials.

In Rajasthan, after ODF, Government is working on ODF+ i.e. sustainability. Commented [D7]:
ODF+ = GGP, SLWM etc. ODF S is sustainability
Under this process they are seeking for proposal from GP to establish
Govardhan Gas plant, Solid Liquid Waste Management plant. In which
people can also explore the possibilities to set these plants.

Now day’s, people understand the importance of safe drinking water. In

Rajasthan, Government is also establishing the RO plant in rural areas from
that plant people can get normal water and filtered water after paying Rs. 4 /
20ltr. During interaction with villagers and entrepreneur we came to know
that in villages people are interested to buy filtered water with home delivery.
In home delivery case villagers are ready to pay high amount i.e. Rs. 20/20ltr.
To establish a commercial RO plant cost comes around Rs. 8-10lakh.

26
8. Financial Inclusion for WATSAN (Dec 2018-Jan 2019)

8.1 Toilets:-
As per the census data 2011, Rajasthan and Tamil Nadu has declared ODF
and Odisha, Bihar and UP are in progress to achieve the ODF. However,
during interaction with Rajasthan SBM representative, informed that still
there are approx 6, 31,000 HH are not having toilets in their premises and Commented [D8]: Does not match with Rajasthan 18%
ODF
these are may be migrated people, left out during base line survey or
increased HH after base line. Similarly, during interaction with Tamil Nadu
SBM representative, also educated that still approx 10-20% people are there
who don’t have toilets in their premises. Currently, Odisha, Bihar and Up
Government are more concerned to focus the Govt. base line data to declare
ODF.
To understand the ground situation the Sa-Dhan team interacted with 603
clients in 20 districts of 5 states. During the visit, we learnt that in ODF states
still few people are open defecating because of unavailability of toilets.
According to field visit in Rajasthan 18% and in Tamil Nadu 31% people are
having toilets in their premises. Moreover, in other states the figure also
stands more than Government data. In Odisha left out people are 30%, Bihar
50% and UP 27%. Commented [D9]: Can we get this data ? Toilet
availability data is even lower than what we have been
thinking!
Currently, Government is providing Rs. 12,000 as incentive after construct of
toilets. However, during interaction with villagers and mason, we came to
know that to construct a twin pit toilet cost would be around Rs. 18,000-
20,000. If client wants to construct a toilet with septic tank then the cost would
be approx Rs. 50,000. Looking at the sustainability of toilets, twin pit toilet is
more preferred.

27
 Table 8.1: HH without toilets and funds requirement

State Rural IHHL % Balance IHHL % Balance Funds

HH (Cr.) as per HH as per as per HH as Requirement
Govt Govt field per field (Cr)
(Cr)

Rajasthan 1.04 100 6,31,000 (as 82 0.1872 3,744

per Govt.
representative)

Odisha 0.79 75.26 19,54,460 70 0.237 4,740

Bihar 1.55 99.78 32,749 50 0.775 15,500

UP 2.49 93.71 15,66,210 73 0.6723 13,446

Tamil Nadu 0.94 100 0 69 0.2914 5,828

Total 2.1629 43,258

According to above table in 5 states 2.1629 (cr.) toilets need to construct.

Therefore, total financial requirement to construct 2.1629 cr. toilets comes
around Rs. 43,258 cr from clients.

8.2 Bathroom Facility:-

“ANALYTICAL REPORT ON HOUSES, HOUSEHOLD AMENITIES AND
ASSETS”14 illustrate about the presence of bathroom in HH in 2001 and 2011.
Extrapolating those percentages, we have calculated the figure in 2018. Apart
from that during field visit, team also asked about the ground situation of
bathing facility in the respondent’s premises. Though our sample size is very
limited therefore there may be possibilities in few geographies the percentage
would be lesser or higher.

As per clients to construct a standard bathroom Rs. 10,000 would be required.

Therefore, total funds would be required Rs. 36,049 in all states. However, the
calculated amount would be more as below figures calculated on the basis on
census 2011 data.

14 http://censusmp.nic.in/censusmp/All-PDF/6.%20Chapter-

28
 Table 8.2: HH without bathroom & funds requirement

States 2001 2011 As per Field Data Field Data Funds

(% HH ( % HH 2011 (% HH (% HH not Requireme
have have Rural having having nt (Cr)
bathroo bathroom HH bathroom) bathroom)
m) ) (Cr)

Rajastha 32.4 55.5 1.04 85 15 1,560

n

Odisha 10.5 19.7 0.79 39.44 60.56 4,784

Bihar 9.6 37.4 1.55 21 79 12,245

UP 28.7 55.2 2.49 48 52 12,948

Tamil Not Available 0.94 52 48 4,512

Nadu

Total 36,049

8.3 Water Resource:-

Water is the basic need to use the toilets. In absence or lack of water resources
people avoid using toilets. During interaction with clients we came to know
that in few areas pipe line reached and in some geography people are having
personal hand pump in their premises and rest are using community water.
People understand the importance of water to use toilets therefore they are
looking for water resources in their premises like hand pump, pipe line, water
tank etc. To install a hand pump cost would depend on the ground water
level. If the water lever is low then need to dig more and if the water level is
low then the dept would be lesser. While interacting with clients we came to
know that to install a hand pump Rs. 15000, would be required.

Looking at the environmental point of view, there is a need to aware clients

about the utilization of natural resources via having rain water harvesting
mechanism at their house to restore rain water in the water tank. To
structures rain water harvesting system in Kutcha (mud) houses there would
be need to design separate model. A pucca/concrete roof is required to
support such structures. The costing of rainwater harvesting structures ranges
from anywhere between Rs. 15,000 – 25,000 depending on the size of water
drum.

29
Even though it seems a good option but with the fact that almost 60% HHs in
rural areas have kutcha roof and coupled with such high cost, this may only
be possible with help of some grant programme.

To understand the market, we are considering the average cost of installation

of a hand pump is Rs. 15,000, such as the funds needed by the clients would
be Rs. 22,227.

Table 8.3: Funds required for water resources

States HH in rural areas Demand from field Funds required

(Cr) (% of HH) (Cr)

Rajasthan 1.04 0 0

Odisha 0.79 34 4,029

Bihar 1.55 10 2,325

UP 2.49 24 8,964

Tamil Nadu 0.94 49 6,909

Total 22,227

8.4 Future Sanitation Market:-

During interaction with clients we came to know that people prefer to
construct single pit toilets in majority of locations as they are not aware about
the model and implication of single pit in future and in few clients because of
financial constraint. As people are not aware about the complication of deep
pit as a result they are digging the pit up to 10-15ft that is contaminating the
ground water. Moreover, Government is also educating to the villagers to
construct twin pit in place of single pit and septic tank. Therefore, people also
understand the challenges of having single pit in future.

In coming years, these single pits will get filled then there will be enormous
demand in the market to construct another pit or to clean the existing pit.
According to villagers, currently, to construct a single pit up to 4ft Rs. 4000-
5000 will be required. Looking at the inflation, after 5yrs, to construct a pit the
cost would be around Rs. 10,000. If we calculate the future market with
existing households in rural areas then there will be a huge market available
under Water and Sanitation ambit. As per below table in future 2.64 cr toilets
would become defunct then to construct another pit required funds would be
Rs. 26,372.

30
 Table 18.4: Future sanitation market

States HH in Rural % of One Pit Defunct in Amount

(Cr) Toilets future (cr) would be
required

Rajasthan 1.04 61 0.63 6,344

Orissa 0.79 82 0.65 6,478

Bihar 1.55 10 0.16 1,550

UP 2.49 38 0.95 9,462

Tamil Nadu 0.94 27 0.25 2,538

Total 2.64 26,372

In conclusion, if we club the entire amount for sanitation, bathing and water
resources then it shows that there is immense requirement in the market to
make entire Rajasthan, Odisha, Bihar, Uttar Pradesh and Tamil Nadu to
become open defecation free, having bathing facility in the premises and
adequate with water supply. Similarly, it shows that there is necessity of
direct intervention from Government, Banks, NGO’s, MFIs and other
Financial Institutions to achieve the mission.

Table 8.5: Total funds requirement in 5 states

States Toilets (Cr) Bathroom Water Single Total

(Cr) Resources (Cr) Pit (Cr) (Cr)

Rajasthan 3,744 1,560 0 6,344 11,648

Odisha 4,740 4,784 4,029 6,478 20,031

Bihar 15,500 12,245 2,325 1,550 31,620

UP 13,446 12,948 8,964 9,462 44,820

Tamil Nadu 5,828 4,512 6,909 2,538 19,787

Total 43,258 36,049 22,227 26,372 1,27,906

31
9. Observations from interacted Financial Institutions:-

9.1 Small Finance Bank:-

Utkarsh Micro Finance started its operations way back in September 2009 to
provide financial and non-financial services in its area of operations to the
unbanked population who have the skill but are in need of capital. Utkarsh
Small Finance Bank offers gamut of Banking products & services which also
includes Micro, Small and Medium Enterprise (MSME) Loans, Housing Loans
(HL), Wholesale Lending, Deposit Accounts (CASA, FD & RD), Insurance,
Mutual Funds, Remittances, Institutional, Government and TASC services.
Utkarsh also offers wide range of payment services which includes Debit
Cards, ATMs, POS Payments, Digital offerings like Internet Banking, Mobile
Banking and payments through NEFT, RTGS and IMPS. Headquartered at
Varanasi, Uttar Pradesh Utkarsh Small Finance Bank has operations in Bihar,
Chhattisgarh, Delhi-NCR, Haryana and Himachal Pradesh Jharkhand,
Madhya Pradesh, Maharashtra, Uttar Pradesh, Uttarakhand, West Bengal.

As on 31st Jan 2019, total Portfolio of Utkarsh is 3500 Cr., Wash O/s 49cr.
Wash Clients 24,092. Wash Ticket size is Rs. 25000 for construction of new
toilet and retrofitting and client gets it’s as top up loan. Commented [D10]: For retrofits what is the amount ?

As per Utkarsh rules within one month after disbursement of WASH loan,
client have to construct toilet. According to Utkarsh’s representative, first loan
only for income generation to increase the earning potential of clients. After 6
months, clients become eligible for WASH loan. Utkarsh does 100% loan
utilization check, out of which 30% clients used wash loan in other purpose.
Moreover, Utkarsh didn’t provide second WASH loan to clients those who
have already availed the WASH loan. Purpose of this condition is to ensure
the end use of toilets loans. If clients want to construct another toilet in their
premises then they can approach to Utkarsh then clients will get loan as well. Commented [D11]: But earlier we say that Utkarsh does
not provide 2nd WASH loan?
Utkarsh is not providing WASH loan in Maharashtra and few geographies of
Uttarakhand due to negative areas. Negative areas are those where Utkarsh
or other MFIs have experienced of default in repayment of loans by clients.
Currently, Utkarsh WASH portfolio is 1.4% and they are planning to enhance
their WASH portfolio up to 2% in 2019 because of demand in the market and
better repayment rate (up to 100%). Currently, Utkarsh is not providing loan
for bathing and water facility. However, to keeping in view they may be able
to add on these products as well for development of their clients.

32
To promote WASH loan, as of now they are not doing special programme.
During other product promotion WASH loan also gets promoted. Currently,
Utkarsh is providing term loan to MFIs and also shown positive response to
provide term loan to MFIs for WASH loan as well.

After disbursement of WASH loan to check loan utilization Utkarsh follow 10

indicators that includes raw material, wall, roof, pipe, light, water etc. Under
CSR fund, Utkarsh Foundation promotes financial literacy, health programme
and skill development training to three types of entrepreneur such as
Trading, Manufacturing and Services to Utkarsh’s existing clients. These
clients get finance from Utkarsh‘s microfinance and banking channel. As of
now these programmes are running in UP, MP, Bihar and Uttarakhand.

The Reserve Bank of India (RBI) has prescribed criteria for qualifying assets
for NBFC-MFIs. Out of which total indebtedness limit of Rs.1,00,000 per
client is one of them. Although Utkarsh transformed into Small Finance Bank
(SFB) but continue to have a microfinance portfolio and maintaining the
norms of total indebtedness limit.

Table 9.1: Utkarsh SFB portfolio

Particulars Number

Total Portfolio (as on 31st Jan 2019) 3500cr

WASH Portfolio (Started in May 49cr.

2018)
WASH Clients 24,092

Rate of Interest (IGL & WASH) 24%

WASH Ticket Size 25,000

Tenure 14 months ( up to 20K) – 24 months

(more than 20K)

Repayment Approx 100% (only 50 clients those

are migrated)

Portfolio 80% Rural & 20% Urban

33
Challenges:-

 Under WASH loan utilization is a challenge for SFB as well. After

construction of toilets people are not using it because of behaviour,
habit and shortage of water. In case of shortage of water clients prefer
their children use it rest prefer to go out.
 At present, Utkarsh is not planning to provide WASH loan as first loan
because with WASH loan clients cannot generate any other income.
 Reduction of rate of interest is not feasible as it will increase their
operational costs and reduce margin.
 In absence of authentic credit information of MSME loans with CIBs, it’s a
challenge to promote MSME loan. This challenge emanates as (as per
Utkarsh) the MFIs are uploading the personal level credit consumption
information on CIBs.15 Commented [D12]: Maybe separately you need to
educate me 😊 !

However, as per RBI guidelines credit information companies (CIC) are directed
to ensure that the credit information report (CIR) in respect of a borrower,
furnished to the credit institution (CI), incorporates all the credit information
available in all modules, e.g. consumer, commercial and MFIs, etc. in respect of
the borrower. These directions are issued under sub-section (1) of Section 11 of the
Credit Information Companies (Regulation) Act, 2005. 16

Recommendation:-

 To make a sustainable model people should understand the

importance and benefits of toilets.
 Every person of the family should use the toilets. Therefore, there is a
need to do regular communication with clients via Behavioral Change
Communication (BCC) model.
 There is a need to involve specialized agency those are having
technical expertise about WASH model, trained mason, develop IEC
material etc.

9.2 NBFC:-
Research team interacted with 3 NBFCs in Jaipur named as Magma Fincorp,
Ess kay Finance and Finova Capital.

15However as per Equifax, one of the CICs, there is a way to identify the personal level MSME
loan consumption.
16

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI355ADA649C0F874E138D5EB01030E
4A72D.PDF

34
Observation:-

 All these NBFC are having MSME portfolio in Jaipur and provide loan
to 2lacs to 25 lacs depends on current financial status of person and
charge 18%-24% as interest.
 Everyone prefers to have experience in the same field of at least 2-3yrs.
Ess Kay finance provide finance to those who have experience in other
field as well.
 Preferred entrepreneurs are traders (Plastic pipes, water tank, sanitary
pan etc.), expansion of existing business, brick trading, RO plant
 Negative profiles of entrepreneurs are Jewelers, Service industry like
barber, massioner, brick making, alcohol etc.
 Currently NBFCs are also facing challenges in sourcing funds
therefore they are unable to finance further.

9.3 Microfinance Institutions:-

The flagship document, “Bharat Microfinance Report (BMR)” is the most
referred document by regulators, policy makers, banks, livelihood promoters
and others. According to BMR 2018, gross loan portfolio of MFIs is Rs.
69,000cr with 35 Mn clients. In total portfolio, income-generating portfolio is
93% and non-income generating portfolio is 7%. The below graph shows that
portfolio of microfinance institutions had grown substantially from past 8
years.

Chart 9.1: Industry portfolio Commented [D13]: Is there similar data for WATSAN
portfolio ?

Gross Loan Portfolio (Cr.)

80000 68789
63853
60000 48882 46842
40000 33517
24332 24607 25699
20000

0
2011 2012 2013 2014 2015 2016 2017 2018

Even in the credit services many MFIs have evolved beyond a plain vanilla
credit products and have diversified into credit products for education,
housing, health, water and sanitation, consumption etc. As per BMR approx
40 MFIs are working in domain of WASH financing. The MFIs portfolio of
Water and Sanitation loans accounted for 7% in 2017 and experienced a
threefold i.e. 21% increase in 2018. As per BMR 2018, NPA of microfinance

35
 sector was 1.48% whereas NPA of WATSAN was 0%. It shows that people Commented [D14]: As sector experts what is your
explanation for WATSAN’s better performance?
understand the importance of toilets that’s why they are paying the EMI on
time without any default. Those MFIs, who are already having WATSAN
portfolio in their organization, understand the market appetite and want to
expand their portfolio under watsan. However, because of unavailability of
funds these MFIs or other MFIs who would like to start but are unable to do it
that.

Share of Non Income Generation Loan:-

Chart 9.2: Share of non income generation loans

14%
Education
7% Housing
38%
Health
Water & Sanitation
21% Consumption
Any Other
1%
19%
17

9.4 Presence of MFIs State Wise:-

Below table shows the presence of MFIs in different states and name of MFIs
which marked bold are having head office (HO) in that states. Currently, in
Rajasthan (34), Odisha (36), Bihar (49), UP (27) and Tamil Nadu (42) MFIs are
operating.

Table 9.2: Presence of MFIs state wise

Name of Name of MFIs working in state Total No. No. of

States of MFIs in MFIs

17 Bharat Microfinance Report 2018

36
 operation having
HO
Basix, Kamal Fincap Pvt. Ltd. NERFL, Usha Financial,
Altura, Annapurna Finance, Arth Micro Finance,
Asirvad Microfinance, BFIL, Capital Trust, Digamber
Capfin, Fusion Microfinance, Light Microfinance,
Mpower Micro, Midland, Muthoot Microfin, NABARD
Rajasthan 34 6
Financial, Pahal Financial, SVCL, Samasta, Satin
Creditcare, Satya Microcapital, Shikhar Microfinance,
SML, Sonata, Spandana, Svatantra, VFSPL, Hand in
Hand, Humana People to People, Prayas, PSC, Pustikar,
Rajasthan Shram Sarathi Association
Basix, GU Financial, Saggraha Management Services
Pvt. Ltd, Adhikar Microfinance Pvt. Ltd, Adhikar
Society, Altura, Annapurna Finance Pvt, Ltd, Arohan,
Asirvad Microfinance, Belstar, BFIL, Capital Trust
Microfinance, Fusion Microfinance, Jagaran Microfin,
Janakalyan, Madura Micro Finance Ltd, Muthoot
Odisha Microfin Ltd, Samasta, Sambandh Fin serve, Satin 36 13
Creditcare, Shikhar Microfinance,Spandana,Svatantra,
Uttrayan, Anandita, Darabar Sahitya, Eastern
Multipurpose Coop Society ltd, Gram Utthan, KDS,
Mahashakti Foundation, ODISHA, SARC, SMCS,
Swayanshree Mahila Samabaya, Vaya Finserv, Credit
Access Grameen Ltd.

ASA International India Microfinance Pvt Ltd, Basix,

Usha Financial, Adi Chitragupta, Annapurna Finance
Pvt. Ltd, Arohan, Asirvad Microfinance, BFIL, Capital
Trust Microfinance, Chaitnya India Fin, Fino Finance,
Fusion Microfinance, Grameen Shakti Microfinance
Services Pvt. Ltd, Jagaran Microfin, Janakalyan, Madura
Micro Finance Ltd, Margdarshak, Midland, Muthoot
Bihar Microfin Ltd., NEED Livelihood, SVCL, Saija Finance, 49 6
Samasta, Sarala, Satin Creditcare, Satya Micro Capital,
Shikhar Microfinance, SML, Sona Finance, Sonata,
Spandana, Svatantra, Uttrayan, Vedika, VFSPL, BMC,
Cashpor, CDOT, CPSL, Gramin Micro Credit,
Gramotthan Micro, KDS, Mass Care International,
NBJK, Sahayog Development, Samhita Community,
Seba-Rahara, SMGBK, Vaya Finserv
ASA International India Microfinance Pvt Ltd, Basix,
UP Surya Jyoti, Usha Financial, Arohan, Asirvad 36 12
Microfinance, BFIL, Capital Trust Microfinance, Fino

37
 Finance, Fusion Microfinance, Margdarshak, Muthoot
Microfin Ltd, Namra Finance Ltd, NEED Livelihood,
SVCL, Satin Creditcare, Satya Micro Capital, Shikhar
Microfinance, SML, Sona Finance, Sonata, Spandana,
Svatantra, Vedika, AU Welfare Foundation, BMC,
Cashpor, Disha India, Futurega India, Gramin Micro
Credit, Gramotthan Micro, Humana People to People
India, IMPACT, Rudraaksh Microfinance, Samhita
Community, Suvidha Microfin

Opportunity Microfinance, Saggraha Management

Services Pvt. Ltd, Sarvodya Nano, South India Finvest,
Vanchinad Finance, Vivardhana Microfinance,
Asirvad Microfinance, Belstar, BWDA Finance Ltd,
Growing Opportunity, Kiara Microcredit Ltd, Madura
Micro Finance Ltd, Magalir Microfiannce, Muthoot
Microfin Ltd, NABARD Financial Services Ltd, Repco
Tamil Nadu Micro Finance, Rors Finance Pvt. Ltd, Samasta, SMILE, 42 31
SML, Valar Aditi, Varam Capital, Virutcham, Blaze
Trust, Bharathi Women, CONSO, Gramalya Microfin,
GUARDIAN, Hand in Hand India, IMPACT,
Mahasemam Trust, NDFC, PAT, Rashtriya Seva
Samithi, READ, REEDMAS, Sanghmithra, SHEPHERD,
Society for Social Development, WOMAN, Makkal
Sakthi Sangamum, Credit Access Grameen Ltd.

9.5 Projection for MFIs for WATSAN:-

During the visit team met with certain MFIs in 5 states to understand their
views, challenges and opportunities towards WATSAN. Apart from that team
also interacted with MFIs clients to understand the position of toilets,
bathroom and water resources in their premises. In addition, also try to
understand the aspiration of clients towards WATSAN. As a result, from
interview clients, we came to know that 24% clients are interested to avail
toilet loan, 34% are willing for bathroom loan and 23% are interested to have
water resources in their premises. These figures shows that there are immense
marginalized people are in the field who wants basic amenities in their
premises, but because of financial constraints they are unable to avail those
facilities. Moreover, MFIs are the only source for them to provide financial
support. Along with that, this is the opportunity for MFIs as well to scale their
operation with product diversity.

38
 Table 9.3: Projection of MFIs for Toilets, Bathroom & Water Resources

Name of Branch Client WASH % IGL % Projection Projection Projection

MFI Client Rate of WASH for Toilets for for Water
Share Interest Rate of Bathroom resources
Interest s
RAJASTHAN
Digamber Jothwara 1300 NA 22-24 NA 429 273 NIL
Midland Juhunjhun 2048 NA 24.80 NA 635 307 NIL
u
ODISHA
Begunia 7700 180 21.9 22 2190 4663 2613
Annapurna Salepur 5870 174 21.9 22 1669 3555 1992
Balipatna 8700 132 21.9 22 2474 5269 2953
UP
Mirzamur 2055 15 19.17 18 206 719 493
Cashpor ad
Rajatalab 2100 20 19.17 18 210 735 504
BIHAR
Sonata Bihta 2300 NA (in 24 24 (NA 437 368 230
that
branch)
Saija Muzaffarp 6602 NA 24.5 NA 1782 990 590
ur
Arohan Darbhang 2885 79 21.25 21.25 404 490 270
a
TAMIL NADU
Asirvad Kanchipur 2901 N/A 21.90 N/A 638 522 0
am

SMILE Cuddalore 4976 N/A 23.12 N/A 2040 2588 4230

&
Villupura
m
BWDA Cuddalore 2490 309 24 23 722 1071 0

Mahasema Tirunelvel 2782 4 24 14.5 0 556

m i
PAT Villupura 832 N/A 22.50 N/A 208 416 416

39
m

During field visit, team interacted with 16 MFIs, out of which Annapurna,
Cashpor, Sonata Finance (but not having portfolio in visited branch), Arohan,
BWDA and Mahasemam are having specialized WASH product in their
portfolio. Apart from that Midland is also providing water purifier in Punjab
districts and going to start sanitation loan. Digamber is Rajasthan based
institution is also understand the need to market and currently in the process
of development of WASH product in their organization. Of these Sonata,
Saija, Satin & Arohan are NBFC MFIs with portfolio of above 100 cr in Bihar.
However WASH products are very negligible compared to their portfolio
sizes.

According to the Annapurna, Cashpor, Sonata Finance (but not having

portfolio in visited branch), Arohan, BWDA and Mahasemam WASH is
productive product and repayment rate of WASH is 100%. MFI leaders do
consider WASH is a good product and the uptake could be anywhere
between 25%-35%. The MFIs in general did not see it as riskier product even
though it is not directly related to income generation and they thought that it
could be given to 2nd or 3rd cycle clients.

Bharathi Women Development Centre (BWDC) – Mahasakthi Micro

Finance Services:-
The nonprofit MFI was stated in the year 2010and the turnover of the
organization is Rs.20 to 30 Crore. The main functioning of the Mahasakthi
MFI is to promote livelihood opportunities through promotion of investments
on income generation. The prime objective is to reduce the migration of small
and marginal farmers. The organization has developed 6108 JLGs and SHGs.
Manaviya organization is giving grant support for capacity building of the
rural household to understand the importance of sanitation and hygiene
habits. It provides a loan support to go for IHHL construction. The MFI has
given loan assistance for constructing 34,000 IHHL. The loan amount vary
from Rs. 12000 and recently 20,000 with a repayment schedule of 18 months
with 24% interest.
To Promote IHHL, the organization is organizing a loan melas. The
organization has trained 300 Masons on IHHL construction. Procurement of
quality materials are facilitated by the organization. Ensuring adequate water
supply to make the toilet functional usually is the first activity of the
organization before construction of IHHL. Normally twin leach pits are
promoted educating the community to divert the sludge to the other pit once

40
 the existing pit gets filled. The organization feel that the toilets which are
constructed few years back may need to renovate and few new houses would
be constructed every year as part of the expansion of family, hence there is
need for financing to address theses gaps. Earlier the WATSAN financing was
about ¼ of their portfolio but now it is less than 10 percent because to achieve
“Swachh Bharat Mission” Government worked very actively and BWDC is
not getting adequate demand from the field.
Unfortunately, Sa-Dhan team unable to meet BWDC clients as that area was
affected due to cyclone. As a result BWDC operation also effected, they are
unable to conduct regular group meeting with their clients. Moreover, BWDC
staff was unable to collection on time.

10. Key Challenges & Recommendations

S. No Challenges
Govt
1 Government provides incentives Rs.
12,000 after construction of toilet. People
are challenged to arrange the upfront
funding to construct the toilets.
Highlighted by 71% respondents.
Recommendations
Govt could design a scheme for
development finance (DFIs)
institutions/ separate fund can be
created for term loan provisioning
for MFIs with interest subvention
facilities to increase the usage of Commented [D15]: Who can / will di it ?
loan and toilets.

2 One of the key concerns that can be To construct sustainable toilets

highlighted is the quality and model of
there is need to provide training to
toilets. People are not aware about the
mason to train them on scientific
toilets.
model that will be sustainable in future.
There is a need for proper financial
monitoring of incentive and
facilitation mechanism to check the
quality of toilets rather than
quantity. Involvement of area
specific NGOs would be beneficial.
3 One of the key concerns that can be Faster processing of subsidies to
highlighted is the extreme delay in the HH is critical for the success of
disbursing the government subsidies. the mission.

4 Access to Water is imperative for proper Govt are already in process of

utilization of toilets. Due to shortage of increasing the PWS coverage but

41
 water people avoid to use toilets. This is the speed of implementation needs
sighted as one of the biggest constraints to be fast tracked.
& challenge. Highlighted by 50%
Water harvesting structures could
respondents
be promoted but are very costly.

5 Use of toilet is a bigger challenge over There is a need to do continuous

construction of toilet. Behavior change orientation and motivation
to ensure usage of toilet is time taking. towards model of toilets,
construction of toilets and benefits
of usage of toilets among villagers
to encourage them.

6 In rural areas there is no mechanism for Campaigning for ODF+ to include

Fecal and Solid and Liquid Waste systematic Fecal and Solid and
Management (SLWM). Manual Liquid Waste Management
extraction of the waste is done by (SLWM) in partnership with pvt
human. This practice is highly and NGO sector.
unhygienic and dangerous.

7 In ODF+, Rajasthan Government is There is a need to do proper

working on generating revenue through marketing of the compost to
garbage under SLWM. However, there spread awareness via its benefits.
is no provision for marketing of
Can also be looked as the income
generated compost.
generation option for local
communities.

Banks
1 Banks are not clearly instructed from
Government and Head Office for
WASH financing. Therefore, they don’t
have any specific product for WASH.
Even though they are aware that WASH
comes under Priority Sector Lending.
However there is no focus for WASH
financing
Clear guideline to banks from the
state and central government to
provide lending support to the
beneficiaries/MFIs applying for
WATSAN term loans may prove to
be very helpful in meeting the
clients’ demands.

2 Banks also informed that it’s not an There is need to aligned banks to
income generating product therefore provide funds support to MFIs,
probability of risk will be higher. Apart MSME and clients specifically for
from this bank didn’t receive any WATSAN.

42
 proposal from the MFIs as well. Market of WATSAN is huge for
MFIs and MSME. There is a need
to get funds support from banks to
finance MFIs and MSME.
3 Though the banks are aware that WASH There is a need to decide specific
loans have come under priority sector percentage for WATSAN under
still they prefer agriculture and MSME priority sector lending (PSL). It
sector to meet their targets. will encourage bank to do funding
for WATSAN as well.

Accordingly the monitoring

system needs to be installed to
make it faster and sustainable
solution

MFIs
1 Major problem of the MFIs is
unavailability of the fund for lending.
However, watsan loan is non-income
generating; bankers are not comfortable
to provide term loans to MFIs.
2 The requirement of finance will be much
more while the need of retrofitting will
emanate, eventually there will be no
support from government. To build up
the portfolio in MFI, there is a need of
initial funding.
A scheme for development finance
(DFIs) institutions could be created
focused on WATSAN loan with
interest subvention or subsidy.
There is a need to directly connect
the interest subvention with
construction and usage of toilets.
The interest subvention provide to
the clients after completion of loan
tenure i.e 18 months to 24 months.
During that period people will
become habitual of using toilets.
WATSAN product development
support will also help in building
capability of MFIs in providing
and servicing WATSAN loans.
Moreover, most MFIs also do not
do lending in this area as they
believe that it is a one-time
product. Product development
support in this area will also help
in getting out of this mind-set.

3 Under WASH loan, Loan Utilization Through JIO tagging or with the

43
 Check (LUC) will be a major challenge. help of community leader MFIs
According to MFIs probability will be can enhance the usage of WASH
high; people will not utilize the loan loan. Apart from that if interest
completely or partially for WASH subvention provided on WASH
purpose. loan then needs to directly connect
with construction of toilets.
4 Unavailability of grant funds to educate The role of NGOs is critical here
the people and generate demand from and NGOs can act as an
the clients. Unavailability of grant fund acquisition partner for MFIs.
to train the ground level animators/loan
officers for generation of demand. SHG leader or JLG leader can play
a suitable role as animator as these
women can easily understand the
concerns of other women and
make them understand with the
importance of toilets.
5 Many MFIs are not aware about the The market scope of WATSAN
appetite of WATSAN market as SBM is lending could be carried out and
Government initiative and MFIs are not shared with the MFI sector and the
aware that clients will get the subsidy Banks.
after construction of toilets. Few MFIs
are providing loan for WATSAN but in
second cycle as it’s not an income
generating products.

6 Lack of submission of proposal for There is a need to do capacity

funding WASH products is also a building of MFIs towards
challenge. MFIs are either not submission of WATSAN proposal.
submitting the proposal for this product As few MFIs are lacking behind in
as banks are not encouraging the same writing proposal therefore banks
and also there is not much focus from doesn’t entertain their proposal.
the HO of the MFI.

Client
1 One of the key concerns that can be Recommendation already
highlighted is the extreme delay in mentioned above
receiving government subsidies by the
beneficiaries and because of lack of
money, the rural people in particular
area are not able to build good quality

44
 toilets.

2 Non-availability of upfront funds for Recommendation already

construction and retrofitting of toilets. mentioned above

3 Lack of knowledge on bad impact of Long term cyclical campaign with

open defecation and scientific toilet local NGOs.
construction.

4 Low household level pipe water supply. Recommendation already

In some geography there is mentioned above
unavailability of water as well. Only
during the rainy season that the water
availability is good, thereafter the
people are facing major challenges in
that.

5 As per our observation, untrained Recommendation already

masons are constructing toilets without mentioned above
considering the standards, making the
toilets dysfunctional resulting into open
defecation. In some areas the depth of
pit is not enough that may contaminate
the drinking water supply and result in
health problems.

6 Large parts of the population not in the Need to do advocacy with the govt
“subsidy list”, as they are not in census. to revise the list or add left out
beneficiaries.

7 The cost of construction of good quality Recommendation already

toilet is higher than the incentive mentioned above
provided under government schemes.
With limited effective financing options
the quality of construction has suffered.

8 The poverty level in rural areas was In “Pardhanmantri Awas Yojna”

found to be quite high and majority of people are getting fund support
the members had kutcha households in from Govt and they are
UP, Bihar and Orissa. The priority of constructing house without toilets.
villagers came out clearly as housing
As per policy, clients have to

45
 and employment. Sanitation and toilets construct toilets while constructing
come somewhere after that. house. However, people are not
following this as they believe for
toilets they will get subsidy
amount again. There is a need to
do spread awareness towards it
and require doing strict checking
to built toilets during construction
of house.

9 The key challenge that the beneficiaries Recommendation already

are facing poor quality of construction mentioned above
of toilets. In some villages, people are
also finding difficult to change old habit
and need a lot of orientation and
guidance.

11. Best Practices

State Best Practices

Rajasthan  Government is providing contract to local people to set up

commercial RO plant, which is able to provide one ltr.
water @10 paisa to villagers. For other usage, normal water
is also available without cost from the same plant. Under
this plant Government does financial investment and O&M
is taken cared by contractor till the contract end after that
contract will renew. .
 After declaring ODF, now Rajasthan Government is
focusing on ODF+ i.e. sustainability. For this government
is seeking contract for 5 yrs from GP who are interested to
set up Solid Liquid Waste Management Plant (SLWM) and
Govardhan Gas Plant. To setup these plants Government
is providing 20lac at GP level. This 20lac also divided in
two phases one for Govardhan Gas i.e. 10lac and second
for SLWM i.e. 10lacs. Otherwise GP can use the entire
amount depends on eligibility criteria to setup the SLWM
plant based upon DPR.

46
  Under SLWM, kachra van or tricycle will collect the
garbage from households and segregate the garbage at
plant in recyclable and non recyclable bucket. Purpose of
the plant to generate revenue from the garbage for GP and
provide employment to the villagers. Currently,
Government is seeking application from GP to start this
programme.
 Digamber Finance is working on the development of
WASH product. To ensure the usage of loan, MFI will
connect with contractor to ensure the construction of
quality of toilets with JIO tagging of customer place
identify for toilet. In this process firstly client will show the
place on which he will construct the toilet along with
contractor. Then, MFIs will provide loan to the contractor
after construction of toilets. Later on, once the toilet is
ready again do JIO tagging to ensure the usage of loan.

Odisha  Recognizing the importance of blocks and Gram Panchayat

as the center of activity for promotion of Nirmal Bharat
Abhiyan (NBA), awareness campaign to be conducted to
enhance toilet usage, through them, to promote 100%
usage of toilets.
 On site, electronic and print media based campaigning is
undergoing through government.
 Gram Vikas18:- It was observed that selection of model of
toilet is an important aspect. Only double pit toilets along
with bathroom and piped water are being promoted by
Gram Vikas where plantations is done around toilet pits
for absorption of liquid generated from the toilets and
bathing rooms, as a result filling of first pit slows down.
Secondly by the time dried Fecal waste is taken out of the
filled first pit; Fecal waste completely converts into manure
purposes, which can be directly used for agricultural
purposes.
 Role of NGOs is critical in implementation and monitoring.
NGOs in Odisha are educating and training community
members on how to construct manage and maintain their
own sanitation facilities. Community member pool
resources to construct identical toilets and bathing rooms

18 https://www.gramvikas.org/

47
 for each household, with clean piped water from a
community-constructed water tank.
 Community lead common water supply system has been
practiced in many areas of India and Odisha with the
support of NGOs (Gram Vikas). For example Gravity flow
water supply system is been developed in many parts of
Odisha. Keeping in mind the hilly terrain of Odisha,
gravity flow water system is a successful model. In this
model, water recharge point or water availability point is
identified, which generally lays at the cleavage of two
hills/mountains. With the help of recharge wells, water is
collected from the source and stored on an overhead tank
which is high in elevation compared to the village of
distribution. From the collection tank water flows down to
the village due to gravity and so it is called gravity flow
water system. From the overhead tank water flows down
to each HHs having individual toilet with piped water
connection.
 Annapurna:- To create demand from field Annapurna first
track the reach of toilets and water in the particular area
via Geographical Information System (GIS). Later on MFI
staffs along with NGO (Humana People to People) to
sensitize people at GP level towards pros and cons of
toilets and safe drinking water. Apart from that they run
awareness campaign such as nukud natak, games, banner,
audio/ video visual etc. to generate demand from field.
 Apart from that Annapurna also check the quality of water
in terms of TDS level and make villagers understand the
effect of drinking high TDS level water. This activity
supports them to generate demand for water purifier.

UP  It was also observed that Gram Pradhans who were quite

active have almost succeeded in making their villages
ODF. For the same, they adopt different methods like
conducting meetings of villagers, orienting them and at
times also threatening to stop their ration. In some villages,
the team also saw slogans and posters in which there was
mention of Rs. 500 fine for open defecation.
 All financial incentives (government and /or private) for

48
 this component are deposited directly (by electronic
clearing service) into the bank accounts of the beneficiary
households (including accounts opened under the Pradhan
Mantri Jan Dhan Yojana). No cash/cheque disbursals shall
take place. The Panchayats at village level and ULBs in
urban areas should ensure that financial incentives to
beneficiary households are transferred in a timely and
hassle-free manner.
 Shramik Bharti19:- The villages where SHPIs are working
showed very good results in terms of ODF villages as
compared to villages where there are no SHPI
interventions. Shramik Bharti does Community Led Total
Sanitation (CLTS) activity with the support of specialized
agency to sensitize the villagers. As a result CLTS done by
Shramik Bharti better than Govt activity. The challenges
that SHPIs are facing are nearly no support and funding
from the government in implementing the programme.
Some SHPIs who have donor funding are able to
implement the programme well.
 Cashpor: - Cashpor is providing WASH loan as health
programme because of illness of any family member
financial condition of that family directly affects. Therefore,
Cashpor runs WASH programmes to improve clients’
livelihood and health status.
 In Cashpor WASH process, firstly, Community Health
Facilitator (CHF) spread awareness towards usage and
benefits of toilets. Awareness increased the understanding
and necessity of toilets that will shows better usage. Based
upon these activities CHFs able to generate demand from
field to construct or renovate the toilet and after
verification by staff members, request for WASH loan
process.
 In continuous, process CHF sensitize women on hygiene
practices to make a sustainable and healthy environment.
 Cashpor is providing WASH loan through own funding
and as BC of Indusind Bank.

Bihar  The model of Swachhagrahis or sanitation volunteers

comprising local school children, NGO members and

19 https://shramikbharti.org.in/

49
 Anganwadi workers has shown good results. They visit
households with no toilets and explain to them in detail
how the government will help them financially to construct
toilets in their households. (Jeevika)
 Rural Sanitation Mart has been developed as an enterprise
by villagers where all sanitation material would be
available. There is a need to promote such initiatives as it
also gives some employment to village youth and women.

Tamil Nadu  The Self Help Group members playing the role of
motivators. The TNSRLM is implemented through the
Tamilnadu Women Development Corporation, who is
responsible for the SHG’s functioning has identified
Community Resource Persons from the Villages and
organized capacity building programme to enable them as
motivators.
 Rural Sanitary Mart (RSM) is a commercial business
enterprise with a social objective to supply quality
materials to an affordable cost to the needy rural poor who
construct toilets for their household. It provides also
technical support for construction by providing suitable
models in accordance with the soil conditions. The RSM
mostly opened and operated by NGOs, SHGs, Women
Organizations, Panchayats, etc. An amount of Rs. 2.93
crore has been incurred as expenditure for establishing 195
RSMs in 31 districts of the State.
 Under the Nirmal Bharat Abhiyan (NBA), Production
centers are established to support in providing capacity
building to the Masons and the stakeholders. There are
about 65 such Production Centres were established with a
provision of 1.00 Lakh /Production centre.

 BWDA:- BWDA is a Non-Profit MFI and BWDA Finance is

an NBFC-MFI. They are headquartered in Villupuram.
Their Gross loan portfolio is about Rs.35 Cr. They operate
in 10 districts of Tamilnadu.

 It has been working in Water and Sanitation since a

decade. They initially started with Capacity building and
awareness creation for the Total Sanitation Campaign. In

50
 total portfolio about 25% of their loans are for Water and
Sanitation. Currently, they are planning to open Rural
Sanitary Mart to empower SHG women through training
how can they run and handle the mart effectively. Later on
will provide MSME loans to trained SHG women.

12. MSME Opportunities

MSME Model Opportunities

SLWM SLWM is a Government initiative as ODF+ to make a

sustainable model. Under this programme Govt is seeking
application from GP to establish the SLWM plant. Purpose
of the plant would be to generate revenue from garbage.
To initiate this process, there would be requirement of
tricycle or garbage van to collect garbage from door to
door and to convert in manure or fertilizer essential
machineries would be require.

After collection of garbage, employee will segregate the

garbage in two bins such as recyclable and non recyclable.
Simultaneously, machineries recycled the segregated
garbage. With the help of SLWM local people would be
able to get employment in that plant and enhance their
earning capacity.

Challenges:-

 Currently, there is no provision for marketing of

generated compost. There is need to do proper
marketing of the compost to spread awareness via
its benefits.
• Local people hesitate to work in the SLWM plant
because they don’t want to segregate the garbage.

Fecal Sludge In rural areas there is only manual Fecal Sludge

Management Management. This practice is highly unhygienic and
dangerous. Currently, these people are charging as per
their choice because there is no authority on them who can
decide the price range. However, after 4-5years there will

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 be huge demand in field to clean those pits. That time these
entrepreneurs can play an important role.

To start this business there will be need of a tanker which

would cost around Rs. 7-8lac and if the person wants to go
with second hand tanker then the cost would be approx Rs.
2.5 -3 lac. Apart from this need to educate to entrepreneurs
about the precautions need to be taken care by them before
cleaning and cleaning the pit such as need to wear mask,
where to dump the waste etc.

The above discussion is in reference to Odiasha, only

where the research team has observed the initiation of
FSM. It is also because in Odisha, the pits are filling up. In
some areas of Odisha, where water level is high the pits get
filled in two to three years.

Rural Sanitary Mart According to study, we learnt that there are substantial
number of people want to construct toilets, bathroom, need
water resources etc. To build these basic amenities there
will be huge demand of raw materials in the market.
Currently, people are bringing raw materials from nearby
town to fulfill the requirement. Therefore, costs of these
materials also get increased. Rural Sanitary Mart would be
an option to provide raw material at local level. To
establish the mart Rs. 5-7 lac would be required. This is the
scenario of all the studied states.

Initially marginalized women unable to start or operate the

mart independently. To run the mart successfully, NGO
can provide technical assistance and handholding support
to SHG/JLG women at certain time. When these women
become graduate to run the mart independently then
handover the mart completely to the group. Through this
women would be able to become entrepreneur and able to
earn handsome money from that business. Additionally,
apart from availability raw material also provide
customized services such as mason, plumber, electrician
etc at the mart as a package solution for WATSAN. To
arrange different raw material need to contact with
different manufacturer to get the better deal.

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 Challenge:-

• For women to ensure entire cost would be a

challenge for establishment of mart.
• There would be a possibilities to manage certain
things need to involve male members as well.

Online Platform Nowadays people are moving towards digitization. In this

context to build an ecosystem online platform for
sanitation market would be a viable and sustainable
model. To maintain an effective demand & supply chain
amongst the manufacturers and retailers at economical
price is a challenge.

For retailers it’s not possible to keep all branded material

in their shop as to keep the stocks enough space and
working capital is required. Based upon the demand
retailers can contact with manufacturer and can order the
required material and accordingly bargain with
manufacturer to get the best deal. Apart from that to retain
their clients, retailers can also provide after sale services
along with services of skilled plumber, mason, electrician
to provide customized services.

This model is observed in Odisha, but can be

promoted/financed in other state as well. Loan officers can
also help the villagers to build up their capacity to access
products and support online.

Rain Water Rain Water Harvesting is a better way to recharge ground

Harvesting level water and store some water for non potable purpose
during rainy season.

To set up a structure for rain water harvesting a pipe will

be adjoining with roof and 2-3 drums as per choice and at
the end of last drum a soak pit is dug to recharge the
ground water with overflow water. In first drum, a filter
will be fitted to remove silt and filtered water will be
transferred to rest of the bucket. To set up a structure cost
would comes around Rs. 15,000 – 25000 depending on the
number of drums and size of drums.

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 This model is observed in Uttar Pradesh and installed with
grant fund however reflections of the villagers suggests
that it’s not viable investment for them as other investment
priorities are higher.

RO Plant Installation of commercial RO plant is a viable model in

those geographies with high TDS and arsenic level in
ground water, to make it potable.

To establish a water plant approx Rs. 7-8 lac would be

required along with monthly Operation & Maintenance
cost of Rs. 12000-15000. People understand the importance
of pure water and are buying it with Rs. 10-20 per 20 liters.
To establish and initial run, the entrepreneurs need
capacity building and external technical support.

It is observed in Rajasthan and as per discussions with

MFIs in Odisha and Tamil Nadu there is substantial
demand of RO plant.

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