Market Based Development

 

Market based Solutions for Affordable Housing

The 2011 Census of India states that the housing shortage in India got reduced between 2001 and 20111 but an accurate estimate of the prevailing gap is not available. It highlights the fact that the use of better building materials such as concrete for roofs, bricks for walls and cement for floors has become more widespread.2 However, according to the 2007 India Infrastructure Report, approximately 55% of houses in India require significant repair and alterations.3 The problem of converting ‘kuchcha’ houses into ‘pukka’ houses in rural India can only be addressed locally. Unfortunately the supply of building materials in the villages remains woefully inadequate and is plagued by low quality and high cost.

TARA Machines and Tech Services is a social enterprise promoted by the Development Alternatives Group aiming to provide high quality and affordable green building materials to millions of under-serviced home builders. It has sought to use market based forces to achieve this objective by creating profitable enterprises across the country through the sale of technology and machines that convert industrial waste into building materials such as roofing tiles, floor pavers, fly ash bricks etc. It commenced operations in 2009 and has since helped setup over 300 entrepreneurs across India who supply to local markets in 26 states.

The company is committed to ensuring that its customers’ business remains profitable and supports them with a package of services. This includes testing of raw materials, recipe and mix advice, profitability advice, assistance with funding, site layout and machine setup, combined with training and capacity building. These measures are also supported by robust after-sales service so as to engage the customers and help them throughout the lifetime of the business.

With the cost of traditional building materials rising continuously, using waste as a primary input allows the materials created with the help of TARA Machines technology to be extremely affordable. Through the sale of its technology packages to entrepreneurs across the country, TARA Machines hope to transform the whole building material market. Extremely reputed and established institutions such as the Institute for Infrastructure and Human Resource Development (IIHRD) in Vidisha, Madhya Pradesh, and Gramodya Sangh in Bhadravati, Maharashtra, have adopted these solutions to set up similar social enterprises.

Institute for Infrastructure and Human Resource Development, Vidisha

Institute for Infrastructure and Human Resource Development (IIHRD), Vidisha in Madhya Pradesh was founded by Prof. A.G. Krishnan Murthy and Dr. Janardan Singh Chauhan, to address the need for a trained workforce to cope with the expected boom in construction activity in Madhya Pradesh. IIHRD aims to be actively involved in the training, construction research and dissemination of techniques to semi-skilled workers engaged in the local construction industry. The centre specialises in affordable housing and appropriate housing technologies, and organises hands-on training programmes jointly with United Nations Industrial Development Organisation (UNIDO), International Centre for Advancement of Manufacturing Technology (ICAMT) and Ministry of Housing.

In 2012 IIHRD decided to setup a green building centre with the help of TARA Machines. The production at the centre would be supervised and marketed in the surrounding areas by IIHRD. The centre is supported by ACC and was inaugurated by their Managing Director on the 24th of February, 2013. The centre now produces high quality pavers and floor tiles, door and window frames, roof tiles and concrete blocks. It has inspired a number of similar organizations like, for instance, Gramodaya Sangh.

Gramodaya Sangh, Bhadravati

Gramodaya Sangh, Bhadravati, district Chandrapur, Maharashtra, is a public trust established in 1955 by S. Krishnamurthy Mirmira, a ceramicist. Its aim was to develop the rural craft of traditional pottery. Gramodaya Sangh chose to work in the village of Bhadravati because of its proximity to Wardha where 35 traditional potter families were living. The village also abounds in a good quality red clay suitable for high quality pottery. The fine pottery that it produces is sold in India and abroad. It was given the National Award for Rural Pottery in 2006 by the Khadi and Village Industries Commission (KVIC), while three of its artisans were given the best Rural Pottery Award between 2009 and 2011. Gramodaya Sangh started brick production out of fly ash approximately five years ago as the Supreme Court placed restrictions on mining of soil for this purpose. It was awarded a project by the Department of Science and Technology (DST), New Delhi to set up a production unit where women artisans would be trained in making bricks. The enterprise currently employs 15 women and it generated the revenue of Rs. 24.68 lakhs in 2012-13.

Next year, the women artisans and other field staff members intend to form a Self Help Group (SHG) to run the production unit. All the earnings will be divided between the constituent members after meeting the expenditures incurred during production. Gramodaya Sangh will only look after the management and quality control.

Gramodaya Sangh is now planning to set up a Green Building Materials Centre with support from ACC and TARA Machines that will manufacture concrete products like door and window frames, roofing tiles and interlocking pavers. q

 

Anamoy Ranjan &
Pranay Samson
aranjan@taramachines.com
psamson@taramachines.com

Endnotes
1 http://pib.nic.in/newsite/erelease.aspx? relid=80811, Page 1
2 http://pib.nic.in/newsite/erelease.aspx?relid=80811, Page 1
3 http://www.iitk.ac.in/3inetwork/html/reports/IIR2007/0-Prelims.pdf, Page 18

 

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