Social Entrepreneur: Harish Hande (Part 6)

Microfinancing structures are an area of interest for me. With Selco, Harish has had to tap into various microfinancing structures. He describes these in a bit more detail, as well as how he leverages outside help to promote his cause.

SM: Let’s talk about financing a bit more; microcredit, microequity, microfranchise – the microfinance structures you are putting together to deliver these solutions. HH: We use microfinancing particularly well when you have a case where a lot of customers, 200 houses or so, and all are willing to pay 175 rupees a month for a system which cost 11,500 rupees.

A bank will want a 10-15% down payment, which is approximately 1,100 to 1,500 rupees of margin money. The people cannot afford the margin money, and the bank insists on the margin money, so we step in and place a guarantee on behalf of the end users. They get the loan on our guarantee, and after a year or so we can get our guarantee money back. >>>

Social Entrepreneur: Harish Hande (Part 5)

Here Harish provides us with a case study of his business model. This is just one example, and they have 80,000 installations, so you can appreciate the impact Selco has had.

SM: A lot of our readers likely have no idea what a very poor village in India looks like or what issues they deal with. Can you give us some examples of your intervention? HH: One of the best cases which provides a great visceral overview, occurred several years ago. In our company we have to think of ways to help the poor, not sympathize with them. >>>

Social Entrepreneur: Harish Hande (Part 4)

Selco has faced some significant challenges, as you might imagine. Here we talk about some of the second-phase obstacles that Selco is in some ways still working to overcome.

SM: Were there any other obstacles that stand out? HH: Another obstacle we faced was making the transition from solar lighting to solar power. One of the barriers people felt was how do you connect something like solar lighting into income generation, and how is that linked to the market. That linkage is what had to be done. Doing so helped us go into the poorer sections, because we needed even more innovative financing for the areas which had very little income. We had to show that power was going to give them income. >>>

Social Entrepreneur: Harish Hande (Part 3)

Here we delve into the philosophy behind Selco – what makes the company what it is. We explore not only the operations philosophy, but also some of the social and cultural philosophies of the company.

SM: Can you explain the business of Selco at this point to us? HH: The whole philosophy of Selco is to provide a reliable energy service at the doorstep of the underserved. The people who need it are those in the rural areas of India. We believe that in anybody’s daily life, reliable energy like solar electricity or solar lighting can lead to a better quality of life. It can also lead to increased savings by reducing cost of fuels, or it can lead to increased earnings due to extra hours available for work.

Overall, reliable electricity enhances productivity. >>>

Social Entrepreneur: Harish Hande (Part 2)

Harish focused on creating an energy solutions company in rural India. Here, we discuss locations and other issues of getting Selco off the ground.

SM: When you moved back to India, where did you set your headquarters? HH: We headquartered in Bangalore. My mother is from Karnataka, so it was a choice between Orissa and Karnataka.

SM: Was this because it was important for you to know the local languages, so you could work in the villages? HH: Absolutely! A lot of things can get lost in translation. Between those two states, there was one element which swayed my bias, and at the time I was completely unaware of it. Karnataka had a larger network of financial institutions in the rural areas than Orissa. Another factor was the lack of money in my pocket, and I had relatives there who could subsidize my cost of living. >>>

Social Entrepreneur: Harish Hande (Part 1)

Dr. Harish Hande is the co-founder of Selco, a rural sustainable energy company which has over 80,000 installations and 25 retail sales and service centers all over Karnataka, a state in Southern India. Among its many accomplishments, Selco has created India’s first rural solar financing program using regional banks. I recently talked with Harish about the development of Selco and his journey as a remarkably committed social entrepreneur. >>>

Serial Entrepreneur: Taher Elgamal (Part 9)

A rather short venture for Taher results in some very impressive results. Here he details the sale of Securify.

SM: You are saying you have an expert system which knows what behavior patterns are are allowed, and if the patterns match those heuristics it is OK? TE: I don’t like the word expert system because everybody understands it differently, it is an overloaded word. Technically it is a whole separate system.

SM: It is a rule based system? TE: That is a more correct term. >>>

The Education Problem: Raj Reddy (Part 15)

I conclude my conversation with Raj discussing some theoretical benefits of his plan to take high speed network access to the villages. Additionally, Raj explains what he feels is necessary for this vision to come to reality.

SM: Anything that improves or provides their livelihood can be the killer app. RR: Yes, that is the killer app; getting them a job, getting them their livelihood. After the livelihood is entertainment. The interesting thing to me is what I see when I go into all of these villages …

I come from a village, and 30 years ago the only person that had a TV was my sister. Now when I go there I see 40 houses with a TV. If there is value, people will buy it. People are desperate; there is nothing to do in the villages. If you can give me something to do, I will give up my third meal for that. >>>