A75ac- LPG Connection financing at Jaglur and Kanahosalli
Project Dates
Project Approval Document – August 4, 2008
Project Photos
Project Details
- The project is an expansion of A75u, A75w, A75ab. Through these three projects, 146 customers have been given connection financing at Nayakanahatti and Jaglur through our infrastructure shops. Another 19 customers are still to be given the connection financing loans, which will be done by end August 08.
- There is a great demand for LPG connection financing. The supply has again opened up and another 100 customers can be given. Most of these new customers have already taken loan from S3IDF for household infrastructure products such as pressure cookers, coin phones etc.
- Since we have the infrastructure for giving and collection in place, this can be done easily.
- There have been no defaults till date. Of the Rs. 595000 repayment that needs to be made to S3, Rs. 2,79,000 has already been repaid by customers, which makes it 46% of the total repayment amount.
Project Size Details
The size of the project will be as follows:
| Location | Number | Price of 1 connection | Total Project Cost |
| Jaglur | 60 | 5300 | 318000 |
| Kanahosalli | 40 | 5300 | 212000 |
| Total | 100 |
| 53000 |
http://spreadsheets.google.com/pub?key=p
Revised repayment schedule, put on Oct 28, 2008
http://spreadsheets.google.com/pub?key=p
Project Impact Details
The project will provide LPG for cooking to 100 households. The impact of the project will be access of LPG cooking to 100 poor households.
Estimated Pre-investment Costs
Total Expected Costs – Rs. 7340
S3IDF costs
Personnel costs – Rs. 3340
Other costs –
Total S3IDF costs – Rs. 3340
Partner costs
Personnel costs – 2000
Other costs - 2000
Total Partner costs – 4000
Returns for S3IDF Revolving Fund
10% flat annual returns;
17.75 % returns on a reducing balance method
Project Indicators
Investment indicators:
Investment size – Rs. 530000
Revolving fund – Rs. 400000
RF to investment size – 75%
Cost Indicators
Total pre investment cost – Rs. 7340
Pre investment cost/Investment Ratio – 2%
Impact indicators
No. of direct beneficiaries – 100
Investment size /no. of beneficiaries – Rs. 5300
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
Partners
Chaitanya, local LPG suppliers in Jaglur and Kanahosalli
No comments:
Post a Comment