Business Idea

Husk Power Systems is a power generation and distribution company serving off-grid rural Indian villages. HPS designs, owns, and operates 40-110 kVA biomass gasification plants that use waste rice-husks as feedstock. HPS generates revenue selling electricity to residential, commercial and agricultural customers, selling the waste product of its process (rice husk ash) and selling carbon offsets in the CDM market. Each HPS plant is operationally profitable within 3 months and breaks even in 3-3.5 years. The company currently operates 12 plants serving over 50,000 people in remote locations of the district of West Champaran in Bihar. The firm has also sequestered 1533 tons of carbon dioxide and has provided more than 50 high-paying jobs to rural villagers.

Social and Environmental Impact

HPS plants create 4/5 jobs in poor areas per plant and give small mill-owners and farmers a meaningful revenue stream by buying husk from them. They replace kerosene lanterns, a major respiratory health hazard. Electricity-based home lighting reduces costs by 50%. Further, electricity in the most needed hours in the evening improves the study-time for children, reduces cases of theft and snake bite, and increases awareness by TV viewership. HPS generates electricity through a carbon neutral process. The waste 'Ash' acts as a very good manure for the fields.

Current status and Expansion Plans

HPS is currently operating 12 plants. Our scalable model will grow from 20 plants in 2009 to over 500 by EOY 2012

Funding Requirements

INR. 25 - 30 crores