A75ab- LPG Connection financing in Jaglur

Project Dates

Project Approval Document – May 12, 2008

Project Photos

Project Details

This project follows A75u and A75w – LPG connection financing at Nayakanahatti and Jaglur. Through A75u and A75w 125 households have been given LPG connection financing. The connections have been given through S3IDF infrastructure shops. The financing will be done through Chaitanya MFI. Chaitanya MFI will give its customers, individual loans for the LPG connection for a period of 50 weeks charging an interest of 15% flat. There is an additional requirement for 150 LPG connections at Jaglur, however Chaitanya MFI is targeting giving 40 connections only due to the lack of funds. The total project cost for giving LPG connections to 40 households is Rs. 200000. Of this Rs. 100000 will be the contribution from Chaitanya Foundation and Rs. 100000 is the support required from S3IDF.

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcJCs6J1VU_nJQ

Project Size Details

The size of the project will be as follows:

Location	Number	Price of 1 connection	Total cost
Jaglur	40	5000	200000

Project Impact Details

The project will provide LPG for cooking to 40 households. The impact of the project will be access of LPG cooking to 40 poor households.

Estimated Pre-investment Costs

Total Expected Costs – Rs. 5340

S3IDF costs

Personnel costs – Rs. 3340

Other costs – Rs. 2000

Total S3IDF costs – Rs. 5340

Partner costs

Personnel costs – 0

Other costs - 0

Total Partner costs – 0

Returns for S3IDF Revolving Fund

8% flat annual returns;

15 % returns on a reducing balance method

Project Indicators

Investment indicators:

Investment size – Rs. 200000

Revolving fund – Rs. 100000

RF to investment size – 50%

Cost Indicators

Total pre investment cost – Rs. 5340

Pre investment cost/Investment Ratio – 3%

Impact indicators

No. of direct beneficiaries – 40

Investment size /no. of beneficiaries – Rs. 5000

Project Risks

Project Owner/operator risk:

The operator is Chaitanya microfinance. This is a new microfinance institution. So there is a risk associated with a new comer. However, Chaitanya has done multiple projects with S3IDF and their repayments have had no problems. Hence this is not such a big risk.

Market risk: There is no market risk

Technology risk: There is no technology risk

Portfolio risk: There is no portfolio risk

Mission risk: There is no mission risk

Partners

Chaitanya, local LPG suppliers in Jaglur