Indo german development cooperation-2012

1. india 2012
Edited by the German Embassy New Delhi
Principles and projects to tackle shared challenges
Development
C o o p e r at i o n
Indo-German
EnvirONment balancing ecology and economic growth
Energy promoting renewables, efficiency and conservation
Sustainable economic development defending the human capital

2. FOREWORD
FOREWORD
Dear Readers,
India’s economic development in the last two decades poverty, will not be achieved. Germany and India were
is beyond doubt a success story. Per capita income has among the 189 countries that committed themselves to
doubled in the last ten years and the private sector has these goals at the United Nations Millennium Summit
registered high levels of investment. in 2000.
However, there are huge challenges that need to be Secondly, Germany is keenly interested in protecting
tackled. Poverty is still a serious issue. In the wake of global goods like climate, the environment and inter-
rapid economic growth, the already enormous pres- national stability. It is obvious that in this endeavour
sure on the environment, natural resources and infra- India, a subcontinent of more than 1.2 billion people, is
structure has intensified further. increasingly a key global player.
Supporting India in overcoming these development ob- What does Indo-German development cooperation ac-
Traffic on Madan Street, Kolkata.
stacles is the aim of Indo-German development coop- tually mean? In which sectors are we involved? Who are
eration. our partners? Answers to these questions are available
in the following pages. However, this brochure can
Why is German development cooperation engaged in certainly be no more than a brief overview. For more
India? The reason is at least twofold. Firstly, without and detailed information, we recommend a click on the
© Martin Roemers / Panos
development percolating to the masses in India, the respective websites that are mentioned alongside. We
Millennium Development Goals, e.g. halving global wish you an interesting and informative read.
3

3. CONTENT
30
PARTNERSHIPS WITH PRIVATE SECTORS
06
ENVIRONMENT Bringing public and private partners together
08 Intensifying partnerships through environment management
10 Umbrella programme on natural resource management
12 Action plans on climate change
FOREWORD
32
PARTNERING WITH THE CIVIL SOCIETY
Working with NGOs, churches, political foundations and more
14
03
ENERGY
16 Solar power full speed ahead
18 From waste to energy
20 Insulation against the heat and cold
34
FOR A BETTER LIFE
German Missions in India fund small-scale projects
addresses
IMPRINT
22
SUSTAINABLE ECONOMIC DEVELOPMENT
36
24 People, planet, profit
38
39
26 Small loans - big impact FORGING PARTNERSHIPS
28 Workforce protection Bringing multilateral organisations together
5

4. ENVIRONMENT
Economic
Germany and India face shared challenges due to rapid
urbanisation and industrialisation. For example, sustain-
ing urban water bodies, ensuring better local air quality
and sustainable land use.
Germany is a world leader in innovative clean technolo-
Economic globalisation is going to create an enormous amount of wealth, gies. India and Germany are long-standing partners in
g lo b a l i s at i o n
this field.
The first Memorandum of Understanding (MoU) on co-
operation in the field of environmental protection was
signed in September 1998. Since then, cooperation has
and we are already beginning to realise that what you do in one country will have an environmental impact
expanded to management of waste, water and renewable
must be followed by
energies.
Germany is supporting India in various areas to develop
ecological
in another country. And therefore you cannot maintain the earth in harmony by only managing your own country.
sustainable solutions that balance economic growth and
environment conservation.
Indo-German development cooperation specifically fo-
cuses on the areas of natural resource management,
sustainable consumption and production, urban environ-
You have to manage the whole earth. That is what I call ecological globalisation.
g lo b a l i s at i o n
ment protection, climate change adaptation and mitiga-
tion, as well as innovative green technologies.
Germany provides about INR 34.45 billion (500 million
Anil Agarwal, environmentalist, April 1999 euro) annually to India as Overseas Development Assis-
tance − ODA (soft loans and grants) − in these areas.
7

5. Intensifying Partnerships Through
ENVIRONMENT
Environment Management
Improving basic services in cities
There is long-standing cooperation between Germany’s Gesellschaft für Inter-
nationale Zusammenarbeit (GIZ) and India’s Ministry of Environment and Forests
(MoEF) in the field of environment management.
Focus areas: Strengthen India’s sustainable urban and industrial development efforts
Water supply in Vyasarpadi area, Chennai.
and intensify partnerships between Indian and German institutions.
Support key Indian policy initiatives, such as the National Environment Policy, the
National Action Plan on Climate Change, and the Jawaharlal Nehru National Urban
Renewal Mission.
Successes: Introduction of sustainable waste management and development of a
number of city sanitation plans, as well as efficient concepts for drinking water supply
and waste water management in a number of cities.
© Sanjit Das / Panos
More achievements: The principles of ecologically sound industrial parks have been
introduced in 30 sectors; a sanitary landfill site for hazardous waste has been built in
Karnataka.
9

6. UMBRELLA PROGRAMME ON
ENVIRONMENT
NATURAL RESOURCE MANAGEMENT
Supporting ENVIRONMENT-FRIENDLY
TECHNOLOGIES and practices
The Umbrella Programme on Natural Resource Management (UPNRM) was
launched in 2009 and is jointly implemented by India‘s National Bank for Agricul-
ture and Rural Development (NABARD), German government-owned development
bank KfW and GIZ.
The programme provides combined packages of loans and grants to financially
viable and small initiatives of NGOs, producer companies, corporates and
communities.
Small-scale cattle farming, Rajasthan.
UPNRM also promotes environmentally sustainable growth by encouraging private
investments that benefit the poor.
Successes: The “umbrella programme” encompassed over 75 projects by August
2011; ranging from forest-based medicinal plants and eco-tourism, to integrated
dairy management in developed watershed areas and other livelihood activities.
© Mitchell Kanashkevich
Over 100,000 participants, of whom approximately 36 per cent are women and 44
per cent from scheduled casts and scheduled tribes, are involved in the projects.
UPNRM will not only help in scaling up existing approaches (Watershed and
Adivasi development), but will also explore other sub-sectors like forestry,
farming systems management, agro-processing, natural resource based liveli-
hoods and climate change adaptation. 11

7. Action plans
ENVIRONMENT
on climate change
Tackling effects of climate change in
rural areas of India
In 2008, Indian Prime Minister Dr. Manmohan Singh launched the country’s National
Mud cracks during drought, Rajasthan.
Action Plan on Climate Change.
Germany’s GIZ is working in collaboration with United Nations Development Pro-
gramme (UNDP), World Bank, Asian Development Bank (ADB) and UK’s Department
for International Development (DFID) to provide inputs to India’s MoEF for preparation
© A. Ishokon - UNEP/ Still Pictures
of a common framework for the action plans at national and state levels.
Madhya Pradesh, Rajasthan, Tamil Nadu and West Bengal are the chosen locations
for the project Climate Change Adaptation in Rural Areas, as they encompass India‘s
differing agro-climatic zones.
GIZ, together with KfW, will also be supporting the implementation of the State Action
Plans on Climate Change in selected Indian states, especially in the North East of
India.
13

8. ENERGY
PROMOTING
5% of the total generation in the country actually comes from green power.
Energy is a priority issue for India. About 400 million peo-
ple in the country are still without a power connection.
Estimates suggest that the total demand for electricity in
India will double by 2030.
INCREASED USE OF
Germany supports an inclusive energy supply that is
sustainable not only in economic, but also in ecological
terms.
India reached 5% level in 2010 and annually The major objective is to decouple energy consumption
GREEN POWER
from economic growth.
Implementation of reforms in the electricity sector will
facilitate an increased use of renewable resources, im-
prove energy efficiency and promote energy conservation
one percent is going to add up to take it to 10% by 2015.
IS FOR OUR OWN
at all levels of society and in all sectors of the economy.
Germany’s KfW has committed INR 96 billion (1.4 billion
euro) in the past five years – an average of INR 19.3
billion (280 million euro) per annum.
Dr Pramod Deo, Chairperson, Central Electricity Regulatory Commission, 2011
ENERGY SECURITY
Additionally, technical cooperation for public and private
partners has been increasing steadily in energy efficiency
and renewable energy sectors, and amounts to a total of
INR 1.7 billion (25 million euro) in the past five years.
15

9. SOLAR POWER FULL SPEED AHEAD
ENERGY
Promoting the solar sector
Vendors use solar powered lights, Ahmedabad.
The Government of India has launched the Jawaharlal Nehru National Solar Mission
to tackle the twin problems of power deficits and mounting carbon emissions. It sets
an ambitious goal of achieving 20 Gigawatt (GW) of solar capacity by 2022, compared
to 109 Megawatt (MW) at present.
In August 2011, Germany’s KfW signed an INR 17.2 billion (250 million euro) loan
© Amit Dave / Reuters
agreement to support the construction of a 125 MW solar photovoltaic plant in the
state of Maharashtra.
The Sakri solar power plant is India’s first large-scale and Asia’s biggest solar photo-
voltaic plant. Its total cost is estimated at INR 25.5 billion (370 million euro).
The power plant is due to be commissioned in 2012.
17

10. FROM WASTE TO ENERGY
ENERGY
Advancing renewable
energy developers
Waste from sugar cane, to be converted into bio CNG.
Green Elephant Group is an Indo-German renewable energy company focusing on waste
to energy projects in India.
The company has brought a new technology for processing agricultural residues into
compressed gas to India.
With the construction of its first biogas plant in India’s sugar belt at Satara District in
Maharashtra, Green Elephant set up the largest production capacity of this type in Asia.
The plant consumes approximately 200,000 m³ of organic sugarcane waste per annum
and generates approximately eight million m³ of gas per annum.
© Jack Kurtz
The project was set up in the framework of Indo-German financial cooperation and is
financed by the Indian Renewable Energy Development Agency Limited, through a credit
line from KfW.
19

11. INSULATION AGAINST
ENERGY
THE HEAT AND COLD
Boosting energy efficiency
in residential buildings
Labourers work at a construction site, Chennai.
In the light of rapid industrialisation, growing urban population and the detrimental effects of
greenhouse gas emissions, energy efficiency is a top priority worldwide.
Under KfW’s support, India’s The Energy and Resources Institute (TERI) and Germany’s
Fraunhofer Institute have jointly adapted an assessment tool for calculating, optimizing and
certifying energy efficiency of buildings.
© Babu Babu / Reuters
The software received encouraging responses from all stakeholders and is currently being
applied in the Promotional Programme for New Residential Housing implemented by the
National Housing Bank (NHB).
KfW has provided a credit line of INR 3.4 billion (50 million euro) and a grant of INR 137 million
(two million euro) to NHB to develop and finance energy efficient measures in residential
buildings in India.
21

12. SUSTAINABLE ECONOMIC DEVELOPMENT
Despite India’s remarkable economic achievements over
the past 20 years, massive social and regional disparities
PEOPLE
remain.
Germany supports India’s reform policies geared to-
wards inclusive, and regionally and socially balanced
growth.
Indo-German cooperation for sustainable development
is organised around three pillars in this priority area:
financial systems development, private sector develop-
ment and social protection.
Development is thus about expanding the choices people
ARE THE REAL
In financial systems development, Indo-German cooper-
ation targets the provision of adequate demand-oriented
financial services in India. The programmes support
financial inclusion, especially for below poverty line fam-
WEALTH OF
have to lead lives that they value. And it is thus about much more than economic growth, ilies.
In private sector development, Germany’s cooperation
with India addresses responsible business behaviour and
competitiveness. The programme also promotes prop-
erly functioning markets and institutions. Additionally, it
NATIONS
encourages an intensive public-private dialogue.
which is only a means - if a very important one - of enlarging people‘s choices
As sustainable and inclusive growth is strongly inter-
linked to social security, Germany and India work to-
gether to provide social protection to unorganised work-
ers and below poverty line families. This includes health,
life and accident insurance, and old age pensions, among
others.
Human Development Report, UNDP @ http://hdr.undp.org, 2012
The support for the priority area of Sustainable Economic
Development has grown steadily. The total commitments
over the past five years exceed INR 17 billion (250 million
euro). 23

13. PEOPLE, PLANET, PROFIT
SUSTAINABLE ECONOMIC DEVELOPMENT
Encouraging socially, environmentally and
commercially responsible practices
The Indo-German Corporate Social Responsibility initiative seeks to encourage com-
panies, both large and small, to integrate environmentally and socially responsible
practices in their core businesses.
This initiative has been formulated by the Indian Ministry of Corporate Affairs with
the support of GIZ. It aims to help Indian businesses achieve the triple bottom
Safety at work in a steel fabrication yard,
line − ‘People, profits, planet’.
This project enables a multi-stakeholder dialogue process, involving a wide array of
public, non-governmental and private-sector actors. Various studies and surveys are
New Delhi. © Zackary Canepari / Panos
also conducted.
Pilot schemes: The initiative is currently working with three clusters consisting of
business member organisations representing 100 energy-intensive steel foundries.
A range of simple measures, such as energy efficiency and safe and hygienic working
conditions are being implemented. The number of clusters is now set to rise to
18, involving 25 business member organisations.
Another success: The Corporate Social Responsibility Voluntary Guidelines 2009 lay
down the fundamental principles of responsible business behaviour and competitive-
ness. These guidelines are applicable to all businesses, irrespective of size, sector or
location. 25

14. SMALL LOANS - BIG IMPACT
SUSTAINABLE ECONOMIC DEVELOPMENT
Enhancing financial inclusion of
the poor and excluded
Through the Cashpor Micro Credit programme, Germany’s KfW seeks to improve
access to finance by the poor and financially excluded households.
Sustainable income generation, Chandigarh.
This will contribute to household asset creation, sustainable income generation,
poverty reduction and growth.
Cashpor Micro Credit exclusively targets below poverty line households and works in
the villages of Uttar Pradesh, where no other microfinance institution is present.
Through an INR 5.8 billion (85 million euro) credit line from KfW to the Small Indus-
tries Development Bank of India (SIDBI), refinancing support is being extended for
© Ajay Verma / Reuters
sub-loans to microfinance institutions in order to scale up microfinance activities.
Cashpor is one of the many microfinance institutions supported under this pro-
gramme.
Additionally, INR 116 million (1.7 million euro) has been provided to further enhance
SIDBI’s capacities, to develop rating, appraisal and risk assessment tools and to train
selected partner microfinance institutions.
27

15. Workforce protection
SUSTAINABLE ECONOMIC DEVELOPMENT
Securing the human capital
The Indo-German Social Security Programme (IGSSP) provides technical advice to the
Indian Ministry of Labour and Employment for the implementation of the Unorganised
Sector Workers’ Social Security Act, and to help improve the social security system for
Medical care to new born babies, Raxaul.
workers in the unorganised sector and their families.
Salient points of IGSSP: health insurance, old age pensions, life and accident insurance,
promoting coherence between different social security systems and supporting an Indo-
German social policy dialogue.
Support for India’s Rashtriya Swasthya Bima Yojana (RSBY) is one of four components of
the IGSSP.
© Sanjit Das/Panos
Germany’s GIZ has been directly involved in the design and implementation of RSBY since
2008. RSBY is an extremely innovative approach to health insurance—a whole family gets
health insurance coverage, cashless and paperless, made possible by a smart card.
In the years to come, this RSBY smart card could also include a variety of additional ben-
efits and services, e.g. motherhood benefits or food subsidies.
29

16. PARTNERSHIPS WITH PRIVATE SECTORS
PARTNERSHIPS WITH PRIVATE SECTORS
Bringing public and private partners together
Partnerships between the private sector and the state For example, through KfW, Germany is supporting India
are pivotal to fostering sustainable development. in developing a National PPP Capacity Development
Programme. A grant of INR 48 million (Euro 700,000)
With its Public-Private Partnership (PPP) strategy, the will assist India’s Ministry of Finance in improving the
Federal Ministry for Economic Cooperation and De- knowledge and skills of up to 4,000 public officials
velopment (BMZ) intends to strengthen the concerted throughout India.
action of official development cooperation and private
business activity. India and Germany’s KfW are establishing a national
urban infrastructure scheme that focuses on promoting
right © Jayanta Shaw/ Reuters
left © Carles Platiau / Reuters
Germany’s develoPPP.de programme combines the PPP infrastructure projects in urban areas. It provides
strengths of public and private partners: development long-term financing for investments in environmental
partnerships are planned, financed and implemented infrastructure, such as water supply, sewerage and
jointly. waste water, and solid waste management.
The aim of develoPPP.de is to mobilise additional contri-
butions from the private sector, utilize private manage-
ment know-how with a view to more efficient service
delivery, and promote private-sector investment as a
growth engine for India’s development process. 31

17. PARTNERING WITH THE CIVIL SOCIETY
PARTNERING WITH THE CIVIL SOCIETY
Working with NGOs, churches,political foundations and more
India is Germany‘s biggest partner in NGO cooperation. Example: EED supports an NGO, UNM-M, in Manipur Political foundations represented in India: Friedrich
Among the most important German NGOs, in terms of that works to reduce the impacts of ethnic conflict, Ebert Foundation (FES), Konrad Adenauer Foundation
financial engagement, are Karl Kübel Foundation, especially on women and children. Misereor supports (KAS), Friedrich Naumann Foundation (FNSt), Hanns
Jugend dritte Welt, Ärzte dritte Welt and Andheri Hilfe. Butterflies, a voluntary organisation working with street Seidel Foundation (HSS), Heinrich Böll Foundation
children since 1989. (HBS) and Rosa Luxemburg Foundation (RLS).
Fields of work: Rural development, poverty reduction,
establishment of social and institutional structures, BMZ promotes the activities of seven agencies that are Key aim: Fostering sustainable development and
food aid, emergency and refugee aid, education, voca- engaged in social structure assistance in India-Arbei- strengthening partnerships, e.g. in a dialogue with po-
tional training, health and engagement in the area of terwohlfahrt, Education Centre of the Confederation litical parties, organisations, and sustainable promotion
environment. of German Trade Unions, Bremen Overseas Research or establishment of democracy and civil society.
and Development Agency (BORDA), Deutscher Caritas-
Example: In cooperation with the Indian NGO Unnati, the verband, German Cooperative and Raiffeisen Confed- Example: Training programme for small and medium
Malteser International runs a project of strengthening eration, Institute for International Cooperation of the enterprises by KAS. Assisting the continuation of eco-
community resilience and social inclusion of marginal- German Adult Education Association, and Social and nomic reforms at the state level, especially in the areas
left top © EED left bottom © Misereor
right © Carmen Wolf / Malteser International
ised Dalit and tribal communities in western Rajasthan. Development Aid of the Kolping Society. of investments, state finance and good governance with
a mid-term multifaceted consultancy and workshop
The Church Development Service (EED) and Fields of work: Establishing and strengthening self-help project.
Misereor support programmes and projects in organisations, especially cooperatives, adult education
India. and sector-specific development projects and pro- The BMZ-funded Weltwärts-programme is a volunteers’
grammes. service plan created in 2008. It aims to promote inter-
Fields of work: inte­ ra­ ed rural development, promotion
g t cultural understanding. By mid 2010, 322 young German
of sustainable agricultural practices, improvement of Example: BORDA is promoting a project for decentral- volunteers were placed in India for about one year,
livelihood opportunities, education, health, and initia- ised watershed systems in India. The project supports mainly in NGOs dealing with health and environment-
tives in community develop­ ent.
m small and medium sized enterprises, institutions and related issues.
communities in planning, designing and constructing
effective, reliable, cost-efficient and custom-made waste-
water treatment systems. 33

18. FOR A BETTER LIFE
FOR A BETTER LIFE
German Missions in India
fund small-scale projects
left top © Manpreet Romana right top © Arko Datta / Reuters
Through their grants, the German Diplomatic and Some of the projects include drinking water tubewells
Consular Missions in India provide direct financial as- for poor rural/tribal communities, electrification of rural
sistance to Indian NGOs and religious institutions for community buildings with solar energy panels, pur-
implementation of small-scale projects for the benefit chase of medical equipment for orphan centre/hospital
of disadvantaged groups of society. for the poor, equipment for setting up a bakery as vo-
cational training for street children, special typewriting
This programme is funded by the German Federal Min- machines for the blind, and furniture for rural schools.
istry of Foreign Affairs.
bottom © Ralf Hirschberger / dpa
For application guidelines, log on to www.india.diplo.de
Preference is given to projects in the sectors of poverty
reduction, public health & sanitation improvement,
income generation and basic education.
The gender equality policy of the project is of particular
importance. For example, providing equal access to re-
sources such as education, information, income, energy,
drinking water and infrastructure, as well as tangibly
improving women’s lives in the project area. 35

19. FORGING PARTNERSHIPS
FORGING PARTNERSHIPS
BRINGING multilateral
organisations together
Germany works with the European Union, ADB, the World In terms of volumes, the World Bank (WB) is the most
Bank, and UNDP in the field of development cooperation. important partner of India, with a total proposed lending
of INR 698 billion ($14 billion) for 2009-2012.
Multilateral efforts are an important pillar of Indo-Ger-
left © Babu Babu / Reuters right top © picture alliance / Photoshot
man development cooperation. WB funds focus on helping India fast-track the develop-
ment of its much-needed infrastructure.
Since 1976, the European Commission (EC) has been ex-
tending assistance to India and is currently focussed on United Nations Development Programme (UNDP) has
the areas of environment, public health and education. been India’s partner in development since 1951.
Between 2007-10, a grant of INR 18 billion (260 million UNDP assists India through sustainable human develop-
euro) was committed. For 2011-13, an amount of INR ment with priority on poverty alleviation, gender equity,
14.5 billion is foreseen. women’s empowerment and environmental protection.
right left © Parth Sanyal / Reuters
Another important partner: India and Germany are found- UNDP support to the Government of India for the period
ing members of the Asian Development Bank (ADB). 2008-2010 has been INR 2.5 billion ($51.5 million). Most
of this was spent in the area of democratic governance.
From 1986 to 2009, ADB provided more than INR 998 bil-
lion ($20 billion), mostly committed to the area of infra- UNDP’s focus states: Bihar, Chhattisgarh, Jharkhand,
structure. It also covers coastal protection, management Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh.
investment and the promotion of clean and renewable
energy. In 2011, ADB extended an INR 369 billion ($7.4
billion) loan for sustainable growth.
37

20. addresses IMPRINT
addresses / IMPRINT
The German Ministry for Economic Cooperation and Development (BMZ) Published by:
develops the guidelines and the fundamental concepts on which German development
policy is based. It lays down the long term strategies for cooperation with the various Embassy of the Federal Republic of Germany
actors involved and defines the rules by which these are translated into practice. 6/50G Shantipath, Chanakyapuri
New Delhi 110 021, India
© January, 2012
The KfW Development Bank is responsible for financial cooperation (FC). FC supports KFW Office New Delhi Phone: +91 11 44199 153
partner countries in the financing of innovative solutions important for development. Mr Oskar von Maltzan, Director email: wz-11@newd.diplo.de
21, Jor Bagh, New Delhi 110003, India
Editors: Bernd Dunnzlaff, Jens Urban
e mail: kfw.newdelhi@kfw.de Managing Editor: Yvonne Krause
www.kfw-entwicklungsbank.de Text: Sakshi Arora
Circulation: 8500
The Deutsche Investitions- und Entwicklungsgesellschaft (DEG), DEG Office New Delhi
a subsidiary of the KfW Group, provides long term finance and advice to German and Mr Armin Albert, Office Director Printed at:
international private enterprises from partner countries with a view to invest in places 21, Jor Bagh, New Delhi 110003, India HT Media Ltd
where no such services are available in the local market. It offers equity capital, B-2,Sector 63
mezzanine finance, loans and guarantees. e mail: deg@degindia.com Noida 201 307
www.deginvest.de U.P, India
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GIZ Office India Design:
is responsible for technical cooperation (TC). It provides technical, economical and Mr Stefan Helming, Country Director
organisational knowledge and skills to strengthen the capacity of individuals and 21, Jor Bagh, New Delhi 110003, India
organisations. In addition to its work for the German Government, GIZ is active on Groupe Dejour, Berlin, Germany
behalf of international clients (partner countries, EU Commission) trough GIZ e mail: giz-indien@giz.de www.groupe-dejour.de
International Service. www.giz.de
39