socio-economic impact biogas in kailali district nepal 2002

7/27/2019 Socio-economic Impact Biogas in Kailali District Nepal 2002

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Socio-economic Impact of Alternative Energy

Technology (Bio-gas) in Kailali District(A Case Study - Malakheti VDC)

Submitted to

Alternative Energy Promotion CentreKrishna Galli

Pulchowk, Lalitpur

Submitted by :

Ramesh Bahadur BalayarConsultant

March 2002

Acknowledgement

First of all, I would like to thank Mr. Madan Bahadur Basnet, Executive Director of AEPC for

providing this wonderful opportunity to carry out a Socio-economic Impact Study on 6obar-gas

in Malakheti VDC of Kailali District. This study would not be completed without the great


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support of the best friends of mine, Mr. Krishna Bahadur Malla and Mr. Tek Bahadur

Balayar. I am truly thankful to them and highly appreciate for their hard work and the guideline.

Also my thanks and gratitude goes to DDC, VDC personals, Biogas users and the different

biogas companies as well as the social workers of Kailali District.

This study means a lot to me. It is really a wonderful opportunity to learn about theAlternative Energy Technology and its effectiveness among the people. Since this is my first

study on Gobar-gas, there is enough place to improve it, however I hope this Case Study

will provide necessary guidelines for further studies on Socio-economic Impact of Gobar-gas.

Ramesh Bahadur Balayar Consultant


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Table of ContentsPage No.

1. ENERGY SITUATION OF THE COUNTRY 1

2. BACKGROUND 2

3. OBJECTIVES OF THE STUDY 2

4. METHODOLOGY 3

4.1 Sampling 3

4.2 Field Survey 4

5. FINDINGS 4

5.1 Institutions and Organization for Biogas Development and Promotion 4

5.1.1 Biogas and Agricultural Equipment Development Company 5

5.1.2 Financial Institution 6

5.1.3 Private Entrepreneurs and Other agencies 7

5.2 Biogas Users 7

5.2.1 Characteristics of the Users 7

5.2.2 Socio-Economic Situation 8

5.2.2.1 Natural Resources 85.2.2.2 Population 8

5.2.2.3 Food and Cash Crop Production 9

5.2.2.4 Occupation and Income Sources 9

5.2.2.5 Land holding and Marketed Surplus 9

5.2.2.6 Livestock Ownership 10

5.3 Constructions, Operation and Maintenance of Biogas Plant 11

5.3.1 Construction Company 11

5.3.2 Reasons for Installation 11

5.3.3 Construction Cost and Subsidy 12

5.3.4 Feeding and Size of Plant 13

5.3.5 Operation and Maintenance After Installation of Plants 165.4 Socio-economic Benefits of Bio-gas Plants 17

5.4.1 Bio-slurry as Fertilizer 17

5.4.2 Effects of Bio-gas on Fuel Wood Consumption and Health 17

5.4.3 Effect of Bio-gas on Environment 18

5.4.4 Effect of Bio-gas on Sanitation and Health 18

5.4.5 Effect of Bio-gas on Other Activities 18

ANNEXES

Annex -1 : Survey Questionnaire

Annex - 2 : Selected Bio-gas Users Interviewed

Annex - 3 : Bio-gas Companies Operating in Kailali District

Annex-4 : Family Size, Number of livestock and Size of Bio-gas Plants in Kailal i

District in Surveyed Area

Annex - 5 : Photographs

Executive Summary

Traditional way of every consumption (fuel) with extremely high dependence on fuel wood

and agricultural waste given rise to environmental, health and productivity problems due to

the production of noxious fumes. It also hampers on the study of children and income


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generating activities due to darkness and time spent on collecting firewood. Along with

forest products (fire wood) the agriculture residences, which can be used as fodder for

animal and soil nutrients, are simply burnt as fuel, which also lack on nutrients for production

of crops. Hence, RET plays an important role on the growth of rural economy. AEPC has been

established with an objective of disseminating and promoting RET for improving standards of

living of rural people and conserve environmental degradation by increasing awareness onenergy crises.

With the focus on socio-economic aspects of the biogas users the study is undertaken to

evaluate overall situation of RET in Kailali District There are about 2222 biogas plants in

the Kailali District in operation. The randomly selected 33 users in surveyed area

surveyed the pre-prepared semi-structured questionnaires with frequent field visit to obtain

the required information.

In the area GGC, PGC, SBC have played an active role in the promotion of biogas technology

since years. To-date 49 biogas companies have been registered and are being operated in

the country. In Kailali District, neither so far, there are nor companies involved in the

installation of biogas plants.

The biogas users are the better section by rural standards characterized by large to

medium land holdings, greater number of livestock and high literacy rate. The average size of

land holding, cattle and buffalo of the biogas users is 48.3, 5.17and 1.29 respectively.

Commercially growing sugarcane and high production in cereal crops indicate favorable for

financial institutions for the recovery of their loan, which was taken during the

establishment of biogas plants and other activities.

During planning the construction of plant users, financing banks and the companies werefound not properly taking account of energy requirement of the households. It is also

complained that there is insufficiency of gas during water than the summer season.

Therefore, therefore, regulatory frameworks need to adequately encompass the socio-

economic aspects so that users enjoy trouble free benefits from the biogas plants they have

constructed. There are only a few companies operating in a specified area, though there are

49 biogas construction companies registered in the country.

Hence, it is desirable that monitoring of the essential marketing elements also is undertaken

regularly, so that users get maximum benefit of the competitive market,

The study results show that in order of importance the reasons for using biogas are to

smokeless environment, safe firewood, convenience of handling and cooking and value of

slurry as good fertilizer.

The implementation coordination between family size and recommended plant size is lacking,

with resultant insufficiency of gas. Continuous promotional and correctional measures need

to be introduced to create an environment to enable to rum and operate the subsidized plants


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regularly.

On the average each households burnt 420 kg of fuel wood per month before the installation

of the plant, which has come down to 100 kg after the construction and use of biogas plants.

Assuming 320 kg firewood save per month in a household of users biogas, a total of 8532.48 M

T firewood i.e. 85.32 million rupees save in Kailali district and all the users applied slurry asfertilizer and confirmed it to be a good substitute for chemical fertilizer.

After the installation of plants, users reported time is saved in cooking, cleaning and

firewood collection with in the condition of health, increased daily work schedule, better

perception of health and hygiene.


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List of Abbreviations

AEPC : Alternative Energy Promotion Centre

RET : Renewable Energy Technology

AET : Alternative Energy Technology

HMG/N : His Majesty's Government of Nepal

ICS : Improved Cook StovesDDC : District Development Committee

TOR : Terms of Reference

NGOs : Mon-Governmental Organizations

INGOs : International Non-Government Organizations

GOs : Governmental Organization

VDC : Village Development Committee

GGC : Gobargas and Agricultural Equipment Development Company

ADB/N : Agricultural Development Bank/Nepal

RUDESA : Rural Development Study Associate

BSP : Biogas Support Program

RBB : Rastriya Banajya BankNBL : Nepal Bank Limited

RGC : Rastriya Gobargas Company

GBC : Gobargas Bistar Company

PGC : Public Gobargas Company and Rural Development Company

FWDR : Far Western Development Region

FYM : Farm Yard Manure

CC : Construction Cost

G5 : Government Subsidy

SP : Size of the Plant

LC : Latrine Connected

QDF : Quality of Dung FeedQWU : Quality of Water Used

D:W : Dung : Water Ratio

VS : Very Satisfied with Biogas Supply

MS : Moderately Satisfied with Biogas Supply

NS : Not Satisfied with Biogas Supply

M3 : Cubic Meter

CMS : Consolidated Management Services

N:P:K : Nitrogen : Phosphorous : Potash

Kg : Kilogram

IRDS : Integrated Development and Research Services

APP : Agriculture Prospective Plan

GJ : Gega Joule


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1. ENERGY SIUATION OF THE COUNTRY

With growth of economy and improvement in people's standard of living

consumption of energy increases accordingly. In Nepal, energy resource bases are

firewood, agricultural residues, animal waste, hydroelectricity and solar energy. In the

country total energy consumption is estimated to be 247411 GJ among which 92

percent is consumed in the rural areas alone, which is fulfilled by electricity (1%),

kerosene (1.994%), firewood (71.384%), agricultural waste (17.263%) and animal dung

(9.113%) (Karki, 1995). Therefore, this type of consumption of energy base fuel wood,

agricultural waste and animal dung in the future will accelerate forest mining as well as

aggravate the environmental hazards due to the non-monetized nature of traditional

fuels and low household affordability for alternative fuels (Rijal, 1995).

The estimated population of Nepal is approximately 23.2 million, of which about 80

percent live in remote areas without lighting facilities. Nepal ranks amongst the lowest

in terms of commercial energy use, with a per capita energy use estimated at 321 kg of

oil equivalent as compared to per capita energy use estimated at 563 and 5369 kg of oil

equivalent for low income countries and high income countries respectively in 1997

(World Bank 1997). Extremely high consumption of natural resources gives rise to

environmental, health and productivity problems. The life of rural women and children

is full of drudgery due to daily chores of collecting firewood from distant forest

leading to deforestation of estimated area of 21,800 hector of forest annually (Karki,

1995). Darkness and noxious fumes are the serious problem for income generating

activities and health and children who are unable to do home work at night are

handicapped in school (Dev. Part. 1997). Agriculture residues, which can be used asfodder for animals and soil nutrients, are simply burnt as fuel. Hence, RET is an

important factor for growing rural economy.

In the present contest various organizations are implementing different activities like

income generation, awareness programs, skill development, health related activities,

alternative energy development activities and so on. There is little extent in social

life but the expected achievements are not met.

With the increasing awareness of emerging rural energy crisis, Alternative Energy

Promotion Centre has been established in 1996 with an objective of disseminating andpromoting renewable energy technology (RET) for improving standard of livingof rural

people and conserve environmental degradation (AEPC, 2000). AEPC as a recognized

government body has access to support and funds from HMG/N and donors for the

promotion of alternative energy in Nepal which includes micro-hydropower, biogas, solar

power, wind energy and improved cook stoves (ICS).

2. BACKGROUND OF THE STUDY AREA


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Kailali, the Terai District, one of the backward in reference to development in various

sector lies in Seti Zone of Far Western Development Region. Though the district is

leading in transportation, communication and other basic infrastructure development, it

is affected by the activities like education, employment, income generation etc. The

present educational status of the district is 44.1 percent literate among which 68.11

percent male and 21.7 percent female in total of whole literacy rate (source: DDC, Kailali2058 census).

Though the district is rich in natural resources, they are not properly utilized due to the

lack of awareness, resource management and skill development trainings. The main

resource of the district could be taken forest area, which is presently encroached due

to high population density and urbanization process; in fact, the forest product is

consumed in various purposes especially for firewood, fuel and furniture for house

construction. It is observed that the forest will be surely destroyed in few years, if the

proper solutions are not taken in consideration.

It is estimated that there are about 1622 biogas plants in operation in Kailali district

through Governmental organization and more than 600 plants through private sector

(Source: District Development Committee Kailali). In spite of the advantageous

location of the area in term of electric grid; the high adoption rate that has taken place

in the last three years, points towards the immense potential of the AET in the area. It

is, therefore, high time to assess operation of the program in the area so that the

experience can be used for future implementation in new program areas. This would

help benefit target group in delivering services more appropriately.

3. OBJECTIVES OF THE STUDY

For sustaining the alternative energy programs, it is essential that the new

technology must be related or linked to the needs of the people. As for guidelines, TOR

obtained from Alternative Energy Promotion Center the study aims to evaluate

and assess the socio-economic impact of the alternative energy technology in the

Kailali district with the following objectives :

To study the socio-economic status of the user after and before

implementation of the RET program in the district;

To evaluate the overall situation of the renewable energy program in the study

area;

To find out the types of the RET and number of the plants installed in the study

area and their situation;

To study and find out the number of population benefited from the RET and how

this technology has assisted to alleviate the poverty;


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To assess and study the various use and utilization of the RET program in the

study district; and

To fined out the number of the organizations involving in the development of RET

program in the study district.

To meet these activities related to RET, a case study based on field visit with primary

data as well as secondary data collection was followed. The study focuses mainly on

socio-economic changes among the users taken place after the implementations of

RET as compared to prior RET implementation.

4. METHODOLOGY

The study is based on the primary as well as secondary sources of information

collected at the local level by using pre-prepared semi-structured questionnaires

(Annex -1)

4.1 Sampling

The secondary information concerning on socio-economic aspects at the district level

was collected from relevant banks, private biogas companies, NGOs, etc. The study is

based on the empirical data gathered from the biogas user communities of selected

VDC of Kailali (Malakheti). Till the study period it is estimated that there were 2222

biogas holders in the district and more than 60 biogas plants were in Malakheti VDC

among which 33 households were randomly selected by covering all wards of the VDC. A

review of the respective program was undertaken to identifythe main stakeholders and

programmed elements based on research literature and secondary data along with

primary data (field visit). After visiting various stakeholders related to the AET, the

valuable information on the status of program concerning issues like subsidy, bank

\oar\s, private sector participation, training and extension and quality of construction

were obtained.

4.2 Field Survey

Randomly selected sample of 33 biogas users were interviewed in the field with pre-prepared semi-structured questionnaires (Annex - 2)

Administered to the biogas users, focus individual as well as group discussions with the

community and the meetings with the VDC, DDC, and other biogas companies and

organization's members were discussed. The following tools were employed to generate

required information.

Review of available studies, documents and research.


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Interviews with households of biogas users. Total numbers interviewed were 33

in Malakheti VDC and the views taken from different related

stakeholders.

Focus group/individual discussions with the selected related key informants

like local political leaders, teachers, supporting agencies, etc. for obtainingqualitative information about the program as well as to access the reliability

and accuracy of the data collected from the field.

The farm level checklist and questionnaire focused in the information related

to population concerns, income, quality of life, agriculture benefits,

environmental benefits, operation and maintenance and bank finance from the

sampled households.

5. FINDINGS

5.1 Institutions and Organizations for Biogas Development and

Promotion

Institutions and organizations for biogas development and promotion to fulfill the

world energy crisis, a number of institutions, donors, INGOs, NGOs, GOs and

private entrepreneurs involved at various stages of the programs have been on

existence. The major institutions involving in the area have been briefly discussed on

how each has helped AET development.

5.1.1 Gobargas and Agricultural Equipment Development Company

{GGC)

With an objective of promoting biogas technology in the country, GGC was

established in 1977 as a private company (a joint enterprise consisting of

development consulting services of united mission/Nepal, ADB/N and the Fuel

Corporation. Now a-days GGC is losing its market due to lack of fund and

difficulties in retaining skilled in the field of completion, furthermore, its market

share has also fallen to 48% in the country. Until such time (2000/2001) 70,270

biogas plants were constructed through out the nation, among them GGC has

constructed 33,462 in numbers (Source: Report RUDESA). As the time passed to

overcome the situation and create a competitive environment, the Biogas Support

Program (BSP) was introduced.

According to the GGC personnel of study area, the subsidy on the construction of

Biogas plant is varies from NRs. 5500 (for 8/10m3 capacity plant) to NRs. 6500 (for

4/6 m3 capacity plant) and a total of expenditure for completing a plant is observed

NRs. 23000. Till now, there are about 17 biogas plants established in Malakheti VDC


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but the trend according to the number of plants established is observed as Dhangadhi

Municipality, Shripur VDC, Geta VDC (more than 65 plants), Belatipur and Malakheti

VDC (only 17 plants). It is observed that the electricity facilities do not hamper the

establishment of biogas plants because Municipality, Geta VDC are the electricity-

accessed areas. The numbers of plants are high in these areas.

The field study and visit to GGC personnel show that the adoption of these plants will be

increased if the government has fixed vision on AET increase the amount of subsidies

and the fixed determination of the construction cost of the plants. In addition, they

have positive view on the establishment of biogas plants because of its unlimited

benefits concerning resources management aspects, healthy, environment,

agriculture, and education aspects.

Now the limited (company) is running with grant support of Germany and Nether land.

5.1.2 Financial Institution

Agriculture Development Bank (ADB) of Nepal played an important role in the

promotion of biogas technology since 1974/75 by disbursing loans to the

interested individuals for installing biogas plants. The bank was also active in caring out

promotional activities such as training and information dissemination. In the initiation

phase, ADB/N .has played a pioneering role for the development and promotion of

biogas. It is the loans for these people who are interested in installing the biogas

plant have no money in their hands. Therefore, the interested people can meet their

interest for construction of the plant through bank's finance.

Nowadays, three major banks of Nepal namely ADB, RBB and NBL forward finance for

the prospective borrowers and the conditions for borrowing differ from bank to bank.

And the repayment period, periodicity and rate of interest charged varies between 3 to

7 years, 3 to 6 is months and 15,13 and 11 respectively. The interest rate changed

highest for ADB/N at 15 percent followed by 13 percent and 11 percent for RBB and

NBL respectively (Table 1). All the banks provide and interest rebate of 1 percent if the

instalment is paid on time.

Table 1: Repayment period, periodicity of instalments and interest rates for biogas

loans by banks.

Bank Repayment Period

(years)

Periodicity of

instalments (months)

Interest rates

(%)

ADB/N 7 6 15

RBB 7 3 13

NBL 3 to 4 3 to 6 11


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ADB/N : Agriculture Development Bank Nepal RBB

:Rastriya Banaijya Bank

NBL : Nepal Bank Limited

In the study area, Malakheti VDC, the people have not utilized financing facilities

provided by the above-mentioned banks.


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5.1.3 Private Entrepreneurs and Other Agencies

Due consideration of following the government policy to encourage private sector

participation and realizing the fact that the government agencies will not be able to

provide services to meet the ever increasing demand for the establishment of sufficient

biogas plants, these new private companies were established to fulfill the demand.To-date more than 49 biogas companies have been registered and are being operated in

the country. In Kailali, so far, there are three companies namely Public Gobargas and

Rural Development company (PGC), Biogas Bistar Company (BGC), Rastriya Biogas

Company (RBC), involved actively in the installation of biogas plants. According to the

district profile, 1622 biogas plants installed by the government organizations and more

than 600 plants by private sectors. PGC has constructed more than 16 biogas plants and

G&C has constructed more than 17 biogas plants in the study area (Malakheti) till now.

5.2 Biogas Users

5.2.1 Characteristics of the Users

Most of the already conducted researches show that the living standard of biogas

holders is better, characteristics by large to medium land holdings, greater number of

livestock and high literacy rate (Development Part, 1997; IRDS, 2000; CMS, 1999,

East Consult, 1994). Because of this short period not surface study, all of the

important population features are close to the earlier estimated figures by the previous

studies.

The average family size of the HHs is estimated at 9.1 and literacy rate at 60% from

the information collected from 33 households covered by the study. The range of

family size varies from 4 to 25 but the average size observed is 9.1 and the literacy

rate of the users is higher than that prevailing in the rural areas of Nepal. It is so

because of the policy of loan flow of the banks for the favorably construction of biogas

plants; i.e., land holding and minimum number of livestock. In the other hand a segment

of the population represented by occupational caste, bonded labour, whose economic

activities are not land and livestock based, would always remain outside the coverage of

program. Nevertheless, livestock rearing is an important agricultural enterprise of the

poor families in general. About two-thirds of Nepal's livestock owners have less than 1hector of land and women and children contribute significantly to livestock rearing

activities (APP, 1995).

Therefore, poorer section also may be benefited with RET concerted efforts are still

necessary. To reach this section, the financial loan facilities and subsidies provided


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conveniently and easily to those poor to overcome this type of problem in the country.

5.2.2 Socio-Economic Situation

This chapter gives the profile and the socio-economic situation of the survey VDC,

namely Malakheti, Kailali, which includes the topography, land use, naturalvegetation and economic situation. The households have also been discussed.

Relevant secondary data from the past micro-studies and the profile of the district

have been referred or cited wherever applicable during the description.

5.2.2.1 Natural Resources

Kailali is a Treai district of Far Western Development Region of Nepal with an area of

about 3235 square km. About 22.4 percent of its area is agriculture land and 73

percent of the total area is forest. The remaining area includes pastures 1.3 percent,

and barren land 1.3 percent (Source: CBS 2048 census). The average land holding size is

3.45 Bigha (Malakheti) indicating limited arable land available for farming. The altitude

of the district varies from 109 meters to 1950 meters above sea level. About 60

percent of total land is Terai and rest 40 percent is hilly area (Chure Pradesh) of the

district.

5.2.2.2 Population

The district has the population of 210127 male and 207764 female. Total number of

households is estimated 73803 with average family size of 6.9. The population densityis 190.85 persons per square km. Ethnically the district is comprised of chhetries

(14.48%), Brahmin (9.58%), Thakuries (3.34%), Tharus (49.52%), occupational castes

such as Kami, Damai, Sarki, etc. (12.1%) and others (10.97%) (Source: CBS 2048 census).

In the study area (Malakheti) the population of male is 7811 and female is 7892 and

households is 2402 according to VDC record 2056/57.


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5.2.2.3 Food and Cash Crop Production

About 80% of the total population engaged in agriculture. Rice, wheat, mustard and

sugarcane are the major crops grown in the area; however, the establishment of sugar

mill at Chuha, Kailali, the cultivation of sugarcane is increasing. Increasing trend of

immigration causes deficit the food production. The process of urbanization in thearea also is another causes of deficit of food production.

5.2.2.4 Occupation and Income Sources

The total economically active population is 50 percent. The proportion of population

engaged in farming 88.4 percent (source: District profile: 2057). Income from service,

business and trade is limited but income from agriculture is comparatively high due to

the fertile Terai land. The study area is the land of migrants from the hill districts of

FWDR of different ethnic groups and Tharus of local habitant. People residing in

close proximity of the district headquarters had better charges of getting services and

running business. However, wage labour (farm labour, porter and construction work)

is considered as the minimal source of income for most of the groups except Tharus.

5.2.2.5 Land holding and Marketed Surplus

After the study, it is found that the average size of land holding of the biogas users

is 3.45 Bigha (48.3 Ropanies), that varies from 7 ropanies to 168 ropanies. All the users

are using their own land but nobody has rented others' land. The major crops grown in

the area are rice, wheat and mustard. Now sugarcane is cultivating commercially due tothe establishment of sugar mill in the district. Among the users, six were cultivating

sugarcane in their fields commercially, two were cultivating beans and one user was

cultivating potato in commercial manner. Users in the area grow substantial amount of

vegetable for their daily use. The estimated income of some users from food grains

varies from NRs 5,000 to 150,000 where as most of users use only for their daily

consumption. Commercially cultivating sugarcane and other vegetables indicates

favorable for financial institutions for the recovery of their loan, which was taken

during the establishment of biogas plants and other activities. The average market price

of rice, wheat and sugarcane has been found 550, 750 and 120 respectively.

Land Holding of the Users


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Land Holding (Bigha)

10 to 2 B2to4 D4to6 D6to8 8to10 D10to12

5.2.2.6 Livestock Ownership

The principal raw material for biogas plant operation may be used from cattle, buffalodung and agricultural residues. Therefore, it is the most important factor for operation

of plant depends on the number of cattle and buffaloes they have (or that the users

have). It is found that the average size of cattle and buffalo is 5.17 and 1.29. However,

biogas users in the area mainly used cattle dung and buffalo dung as feed to the plant.

A few number of users (five) connected their latrine to biogas digesters. The number of

cattle and buffalo ownership is must to obtain loan for financing biogas plant. The

norms established by the GGC relate the family size and cattle number, which has linked

to the size of biogas plant. The norm along with the figures obtained from the users in

Kailali district study area (Malakheti) has been presented in Annex-4 for comparison.

It is seen that 51 percent users constructed low capacity plants than the

recommended on the basis of family size. Among these, animal numbers is a serious

problem for 40 percent users i.e. due to low animal holding but 36 percent has not the

animal problem. Thirty five percent users have the capacity to construct the

recommended size but they did not do so. Thirty five percent users have

constructed the recommended sized biogas plants and 33 percent users have not

sufficient animals for regular operation.


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It is seen that there was no serious consideration during the construction of biogas

plants according to the number of animal holdings.

5.3 Constructions, Operation and Maintenance of Biogas Plant

5.3.1 Construction Company

Most of the biogas plants of the area were constructed during the period of 1999 i.e.

users were having biogas plants during last 3-4 years and some users were having as

older as 6-7 years and some were constructing recently. Of them (interviewed users)

twelve plants were constructed by Public Biogas Company (PGC), five plants were

constructed by Gobargas and Agriculture Equipment Development Company (G&C) and

sixteen plants were constructed by Gobargas Bistar Company (GBC). Though there are

more than 50 biogas companies existing in Nepal until now, only a few numbers of

companies were working in the surveyed area (Annex - 3).

Although, there were more than 4 biogas companies operating in Kailali district only a

fewer numbers of companies run their operation in a specific area. When the fewer

companies operate in an area, non-competitive elements in the marked are bound to

appear. Hence, it is desirable that monitoring of there essential gets maximum benefit

of the competitive market. If there is competition, the construction cost and other

subsidies will be minimized. This causes increase in the level of acceptance of the

technology.

5.3.2 Reasons for Installation

Biogas users were asked the reasons behind the installation of biogas plants and

the results are presented in table - 2 below. :


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Table 2 : Reasons for installation of biogas plants

Reasons Number of Users/100

units (priority)

Save fire wood 65

Save kerosene 22Smokeless Environment 76

Bright light -

Good fertilizer 54

Convenience 65

Cleanliness 22

Better health 22

Subsidy 33

Others

From above table the important reasons behind the installation mentioned by the

users are smokeless environment, save fuel wood, convenience of handling and

cooking, value of slurry as good fertilizer, availability of subsidy, which were

observed based on priority basis. There were other reasons mentioned are

cleanliness, better health and saving of kerosene which were given comparatively less

priority. Though, all the users have taken subsidy during installation, they are giving it

less value. Though most of the users of non-electricity areas installed biogas plant

expecting lighting along with cooking purpose, they all complained the quality of light

i.e., not dependable, not durable. Nevertheless, the purpose of electricity user area is

found only for the cooking purpose not for lighting purpose. Among the high priority

responses, convenience one of the most important reason has not received the same

level of treatment as others in the biogas literature.

5.3.3 Construction Cost and Subsidy

The construction cost and subsidy on biogas is different in different geographical

regions and the size of the plants of different organizations, which is presented in

table 3.

The percentage of subsidy in the total construction cost diminishes as size of the plantincreases. The subsidy rate for the same sizes of biogas plants increases as one

moves up from Terai to hills. For example, amount of subsidy QS percentage of cost is

estimated at 24.7, 36.6 and 44.3 (average) percent in Terai, accessible hills and remote

hills respectively for a 4 m3 to 10 m3 plant.

Table 3 : Construction cost and subsidy by region and size of the biogas plants:

(construction and subsidy in Rs.)


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Size of the plantsRegion

4m3 6m3 8m3 10m3

CC GS CC GS CC GS CC GS

Terai 20,000(32.5%)

6,500 23,300

(27.9%)

6,500 27,000

(20.4%)

5,500 30,400

(18.1%)

5,500

Accessiblehills

20,300(46.8%)

9,500 23,600(40.2%)

9,500 27,600(30.8%)

8,500 31,000(27.4%)

8,500

Remote hills 20,300

(56.6%)

11,500 23,600(48.7%)

11,500 27,600

(38.0%)

10,500 31,000

(33.9%)

10,500

Source : G&C and HMG/N Ministry of Science and Technology (AEPC)

CC : Construction Cost

GS : Government Subsidy

Figures in the parentheses indicate subsidy as percentage of total cost.

5.3.4 Feeding and Size of Plant

Being Terai District, farmers raise buffaloes, cattle, goats than other animals.

Therefore, the main feed for the bio-digesters is buffalo dung and cattle dung. All the

interviewed biogas plant owners were found using buffalo and cattle dung as main

feed; only 5 out of 33 owners have connected latrines also to bio-digesters

supplementing the available feed with night soil (Table-4). The level of acceptance to

connect latrines to biogas digester is less because of the conservativeness of the

users and the devoid of toilets in their houses. It is observed that most of thehouseholds are using open toilets and some uses toilet as reparation.

Size of Biogas and Number of Users


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Size of Plants(cub. m)

Table 4 : Feed, Size of plant and user's satisfaction:

Family

No. SP LC QDF QWU

Ratio

D:W VS/MS/NS

1 6 25 25 1:1 MS

2 6 35 30 1.16:1 VS

3 10 60 60 1:1 VS

4 6 9 30 30 1:1 MS

5 8 60 50 1.2:1 MS

6 8 45 45 1:1 VS

7 20 120 120 1:1 VS

8 8 60 60 1:1 VS

9 6 45 50 0.9:1 MS10 8 45 45 1:1 VS

11 8 60 60 1:1 VS

12 8 9 50 50 1:1 VS

13 8 9 50 50 1:1 MS

14 6 40 40 1:1 VS

15 6 20 25 1:1.25 MS

16 10 75 70 1.07:1 MS

17 8 45 45 1:1 MS

18 6 30 30 1:1 VS


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19 6 35 35 1:1 VS

20 6 9 40 40 1:1 MS

21 8 45 45 1:1 VS

22 8 50 50 1:1 VS

23 10 9 65 60 1.08:1 MS24 10 60 60 1:1 MS

25 8 35 35 1:1 MS

26 6 35 40 1:1.14 VS

27 10 9 70 60 1.16:1 MS

28 6 40 40 1:1 VS

29 8 55 55 1:1 VS

30 8 60 60 1:1 VS

31 6 9 40 40 1:1 MS

32 10 60 60 1:1 VS

33 6 40 40 1:1 VS

SP - Size of the plant in m3 (cubic meter)

LC - Latrine Connected

QDF - Quantity of Dung feed (KG)

QWU - Quantity of water used (liter/KG)

D:W - Dung : water ratio

VS - Very satisfied with biogas supply

MS - Moderately satisfied with biogas supply

NS - Not satisfied with biogas supplyRecommended daily feed as perGGC for 6m3 plant = 36 kg minimum

Recommended daily feed as perGGC for 10m3 plant = 60 kg minimum

It is observed that the socio cultural and religious beliefs were behind in order to

increase efficiency of the plants they have owned. It is also applicable to the other

overall development activities.

From above presented table-4, it is observed that not all the owners were using the

proper recommended dose of the dung to run plant smoothly. It is because of the few

livestock holding, conservative thinking about the use of latrines. Most of the ownersare refusing the connection of latrine to the biogas digester due to because the gas

produces from the human faeces is not acceptable for cooking purpose. Feeding in a

digester was observed irregular and the recommendation rate of feed was not

considered during feeding. Some of the owners have less dung production than the

digester's capacity.


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As far as dung: water ratio is considered satisfactory for some users but at a very

satisfactory and a few was satisfactory but there was no unsatisfactory owners

observed. It is found that use of night soil through latrine connections seems to have

supplemented the bio-digesters to run smoothly at full capacity. If the plant does not

operate with full capacity, the goal of subsidy is not met. Continuous promotional andcorrectional measures in this regard need to be introduced whereby the subsidized

plants are regularly run and operated. For this, the regulator field monitoring and

evaluation is the most.

5.3.5 Operation and Maintenance after Installation of Plants

All the users were asked about the availability of maintenance services after

installation in the area to ascertain whether these create problems or not in the

operation of plants. Most of the users reported the availability of such type of help

from the related biogas construction company whenever requested. These services

were normally attended in less than a week, however some cases were even the same

day.

Most of the users were using the slurry (mixture of dung and water) in their plants for

smooth operation. The maintenance work is the thrown of liquefied water by gas in

pipe which work completes within two minutes. All the users were firmly maintaining

their pipes, nuts, nozzles and check the leakages of the gas. In addition, it was

observed that all of the users were cleaning their stoves. The used off slurry is using

with waste materials (straw, leaves, etc) for preparing compost manure.

The maintenance work has been assisting by the supervisors provided by the

companies. Most of the companies were providing survives after the installation of the

plant by their supervisors. Public Gobargas Company has been providing two supervisors

in the study area (Malakheti VDC)

Most of the users were feeding with the capacity of the plant and a few numbers of

users were net fulfilling the requirements due to the lack of animals. Therefore, a few

numbers of plants were irregular in operation and most of the plants were in regular

operation.

Though the number of biogas plants in the area is not less, the guarantee period

provided by the companies is not reach in the end. So, there was not any problem in

maintenance and the cost of maintenance of the plants except the bulbs and mesh

(warranty Period - 6 years)


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5.4 Socio-economic Benefits of Bio-gas Technology

5.4.1 Bio-slurry as Fertilizer

The used off digested slurry is applied as fertilizer in the users field crops having the

dual purpose of dung i.e. source of energy and fertilizer. Containing more nutrients

content biogas slurry is valuable as compared to FYP (farm Yard Manure) because the

nutrients are lost by utilization (esp. Nitrogen) in FYM due to exposure to sun as

well as by leaching. The N:P:K content in the digested slurry is estimated at 2.7:1.9:2.2

respectively (CMS, 1996). The capacity of soil nutrients is replenish higher than FYM

and to some extent replaces the need for chemical fertilizer. All the users applied

digested slurry as fertilizer in the area; among them most of the users applied slurry

by preparing compost manure with other waste products like straw, leaves, twigs, etc.

which help the fast decaying and drying of slurry and few applied fresh liquid slurryin their fields. Most of the users make two pits for collecting digested slurry so that

they can make mixed manure with straws, leaves, etc.

5.4.2 Effects of Bio-gas on Fuel Wood Consumption and Health

Most of the users visited used gas for cooking purpose but also they have one lamp in

their kitchen for lighting purpose (in the areas devoid of electricity). However, due to

the low capacity, irregular consumption of feeding, season, they do not give priority on

lighting rather than cooking. The areas of electrified the gas is used for cooking

purpose only. Most of the users complained that the gas sufficiency is decreased duringwinter season.

On the average each households burnt 420 kg of fuel wood per month before the

installation of the plant which has come down to 100 kg, a least amount, after the

construction and use of biogas plants. Assuming each user saves 320 kg of fuel wood

consumption per month, the annual saving of fuel wood consumption in Kailali district with

2222 biogas users is estimated at 8532.48 metric ton per year. Its monitory value

amounts to NRs. 85.32 million per year at a price of NRs. 1000 per metric ton fuel wood.

17


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5.4.3 Effect of Biogas on Environment

The user households reported that stall feeding of cattle and buffaloes has

increased due to the biogas, since as member of household don't go to forest for

collection fire wood, cattle and buffaloes also will not be taken to forest for

grazing. However, these activities are not fully applicable, certainly the great portionof these activities are observed. It is said that these activities certainly reduces the

environmental hazards. Free grazing, uncontrolled mass of animal, during everywhere

is the major factors for the worsening of environment. Adoption of biogas certainly

improves the natural environment as well as social environment. Though it is difficult to

measure the value of biogas on environment, the environmental benefits of these

activities are high. If we use biogas, in our house, it is clean, safe and it does not

produce the harmful gas. This causes the reduction in the respiratory and other disease

so it is environmentally friendly.

5.4.4 Effect of Biogas on Sanitation and Health

The most important factor, which is difficult to value, is clean air within house made

possible due to biogas construction and use, which is very essential for good health. The

obnoxious fumes produced from burning fuel wood creates wide spread health hazards

in the rural areas, especially to women and children. Most of the users reported

decrease of eye diseases, cough, headaches and chest pain after the construction of

biogas plants and its use in their household. Most of users reported the unnecessary

heaps of firewood caused dirty environment and sometimes it has the home for

poisonous snakes and other enemies. Moreover, the other unnecessary straws, leavesaround their house are used for making compost manure, which make the environment

clean and sanitize, which ultimately help maintaining good health condition of the

people. In addition, the latrine connection to the biogas makes the surrounding green

and clean, which supports on the better health.

5.4.5 Effect of Biogas on Other Activities

Further more, households reported after installation of biogas plants significant time is

saved in cooking, cleaning and firewood collection, which properly used in other income

generating activities will bring great fortune to them. To fulfill the requirements of thedung for biogas plant, the additional animals were raised by the most of the users,

which is ultimately the source of income concerning their milk, meat, etc. Except

this, none of them reported starting a different new income generating activities

after the construction and use of biogas.


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There were several advantages reported by the users. Indeed, from the users point of

view, the investment on biogas plants is observed to be financially viable, if all benefits

like firewood saving, kerosene saving, labour time saving and increment in production are

properly accounted.


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Annex -1


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Annex -2

Selected Bio-gas Users of Surveyed Area Interviewed

S.N.Name of the Biogas

Holders

Address Construction Company

1. Chandra Dev Sharma MalakhetiVDC-1 PGC

2. Hark Bahadur Shahi MalakhetiVDC-2 PGC

3. Ram Datta Bhatta MalakhetiVDC-2 GGC

4. Pradeep Singh MalakhetiVDC-2 PGC

5. Damodar Bhatta MalakhetiVDC-2 GGC

6. Lai Mani Bhatta MalakhetiVDC-2 GBC

7. Sir Bahadur Rawal MalakhetiVDC-2 GBC

8. Indra Dev Bhattrai MalakhetiVDC-3 GBC

9. Kalu Ram Bhat MalakhetiVDC-3 GBC

10. Bijaya B.K. MalakhetiVDC-3 GBC

11. Hari Krishna Bhatta MalakhetiVDC-3 GGC

12. Kalu Ram Bhattrai MalakhetiVDC-3 GGC

13. BirBahadur Bhat MalakhetiVDC-3 PGC

14. Bhim Datta Bhatta MalakhetiVDC-3 PGC

15. Bir Bahadur Air MalakhetiVDC-4 PBC

16. Iswari Rawal MalakhetiVDC-4 p&e

17. Shiva Raj Bhatta MalakhettVDC-4 PBC

18. Bhanu Bhakta Joshi MalakhetiVDC-5 PGC

19. Bhanu Bhakta Joshi MalakhetiVDC-5 PBC

20. Bijay Raj Joshi MalakhetiVDC-5 PBC

21. Dhruba Bahadur Shahi MalakhetiVDC-6 PBC

22. Dashrath Pali MalakhetiVDC-6 GGC


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albinayak Pandey MaiakhetiVDC-6 PGC

irgha Bahadur Bista MalakhetiVDC-6 PGC

am Bahadur Bhat MalakhetiVDC-6 PGC

aila Ram Chaudhary MalakhetiVDC-6 PGC

aghubir Singh MaiakhetiVDC-6 PGC

ani Raj Naunyal MalakhetiVDC-7 PBC

ohan Lai Tiwari MalakhetiVDC-8 PBC

ilii Ram Khatri MalakhetiVDC-8 PBC

axman Air MalakhetiVDC-9 PBC

her Bahadur Mahara MalakhetiVDC-9 PBC

ukta Bahadur Khatri MalakhetiVDC-9 PBC


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Annex - 3

Bioqos Companies Operating in Kailali District

1. Gobargas and Agricultural Equipment Development Company (GGC)

2. Public Gobargas and Rural Development Company (PGC)

3. Gobargas Bistar Company (GBC)

4. Rastriya Gobargas Company (RGC)


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An n e x - 4 Family size, number surveyed area of livestock and size of biogas plants inKailali district in surveyed area

Family

No.

Constructed

Size of Plant

m3

FamilySize

Size recommended

as per Family Size

No. of

Livestock

Owned

Livestock No.

Recommended for

the plant size1 6 12 15 3 9-14

2 6 7 8 2 4-6

3 10 6 6 9 3-4

4 6 4 6 3 3-4

5 8 13 15 11 9-14

6 8 10 15 4 9-14

7 20 11 15 14 9-14

8 8 7 8 10 4-6

9 6 15 15 4 9-1410 8 4 6 2 3-4

11 8 Q 10 23 6-9

12 8 5 6 9 3-4

13 8 7 8 5 4-6

14 6 11 15 6 9-14

15 6 5 6 1 3-4

16 10 25 35 24 14-above

17 8 9 10 4 6-9

18 6 12 15 11 9-14

19 6 4 6 5 3-4

20 6 15 15 10 9-14

21 8 6 6 3 3-4

22 8 12 15 3 9-14

23 10 9 10 4 6-9

24 10 19 20 5 14-above

25 8 9 10 7 6-9

26 6 5 6 5 3-4

27 10 12 15 4 9-14

28 6 7 8 5 4-629 8 7 8 7 4-6

30 8 11 15 3 9-14

31 6 4 6 5 3-4

32 10 7 8 6 4-6

33 6 6 6 3 3-4

Source : GGC and users interview


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PHOTOGRAPHSAnnex - 5

Slurry Intake

Biogas Plant


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Slurry Collecting Pit after Use

Slurry Collecting Pit after Use


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Cooking by Using Gobar-gas Energy

Cooking by Using Gobar-gas Energy


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Discussion on Gobar-gas Impact with Biogas Staffs

Slurry Intake

socio-economic impact biogas in kailali district nepal 2002

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