Providing climate-smart services for smallholder farmers
Oorja Development Solutions Pvt. Ltd.
Background
Provides the background of the problem that the enterprise is solving or seeking to solve (150 words). Among the 600 million people living on agriculture in India, 80% are smallholder farmers, owning less than two hectares of land, with a median landholding of 1 acre and a median household earning of a meager INR 40,000 per year. To catalyze economic development in rural India, the government has invested considerable efforts in promoting the adoption of productive use of renewable energy (PURE). Prominent among those initiatives was the PM-KUSUM scheme, which was launched to incentivize the adoption of solar pumps. However, on-ground adoption of solar pumps remains significantly lower than anticipated because of meager and variable earnings, high upfront cost of the pumps, even after subsidies, and lack of credit. Consequently, the farmers resort to either cultivating without essential infrastructure such as irrigation and cold storage or using conventional technologies such as diesel pumps which results in significant amount of GHG emissions and higher operational costs for the farmer.
The Enterprise
Briefly describes the enterprise’s history, antecedents of its founders and areas and geographies of its work (150-200 words). Oorja Development Solutions Pvt. Ltd. (Oorja) was established by Mr. Amit Saraogi and Dr. Clementine Chambon. Amit brings over 25 years of diverse experience in management consulting, banking, and entrepreneurship, and serves as the Chief Executive Officer (CEO) of Oorja. Clementine, with a doctorate in bioenergy and extensive experience in climate mitigation research and consulting spanning over a decade, serves as the Chief Technical Officer (CTO). Oorja commenced its operations in 2017 with the objective of providing energy security through solar biomass microgrids in regions with limited or absent grid connectivity. Recognizing the potential of PURE technologies in addressing energy challenges, Oorja also identified the barriers to their adoption. Leveraging this insight and identifying a market gap, Oorja pivoted its operations to offer pay-per-use services for essential agricultural infrastructure. Currently Oorja is offering irrigation, agri-processing and cold storage as a service in the states of Uttar Pradesh and Bihar.
The Business Model
Briefly describes the business model including its various components (150 words). Oorja’s operational structure revolves around standardized asset groups known as clusters, covering a radius of 20km. Each cluster comprises 4-5 pumps, agricultural processing equipment like pulverizer, and a shared cold storage unit (5MT) across four clusters. Oorja initiates the establishment of clusters by identifying regions characterized by a high concentration of smallholder farmers, weak energy grids, and dependence on diesel pumps. Once such a region is identified, Oorja establishes a ground team, comprising individuals from the targeted region only. Before installing the assets, an extremely nominal registration fee is charged to use the assets once they are set up. This registration fee serves multiple purposes: it helps Oorja accurately gauge demand and interest, and it fosters a sense of ownership among the targeted consumers. After the assets are installed, registered customers can access them through a pay-as-you-use model, where payment is based on the volume of water consumed or the weight of grain processed. The ground team facilitates the entire process, from installation to ongoing support.
The Solution
Describes how the business model is solving for the aforesaid problem, and the problem-solution fit (150-200 words). The reliance of smallholder farmers on seasonal earnings and their limited access to credit make it exceedingly challenging for them to reinvest in farming infrastructure. Consequently, they are unable to leverage technology, adopt modern farming practices, or access high-end inputs, perpetuating their cycle of marginal development. Oorja’s model addresses this challenge by providing access to farming infrastructure for people at the bottom of the pyramid. On average, 60 percent of their consumers had gained access to irrigation and other services for the first time. This eliminated their reliance on the monsoon and enables them to farm for a greater period during the year, significantly enhancing their earnings. Surveys conducted by 60 Decibels and many other organizations demonstrate the satisfaction of Oorja’s consumers with the cost-effectiveness and the ease-of-use of its services. Oorja’s model effectively breaks the cycle of marginal development for smallholder farmers by providing access to farming infrastructure without the need for ownership of such assets, leading to increased earnings and wider area under cultivation, as evidenced by surveys and testimonials. It is also an effective ecosystem service with the pay-per-use model ensuring judicious utilization of pump capacities, thus limiting the depletion of groundwater.
