The Grasso Model

In Kolkata on the Feb 10, 2003, Bharat Sanchar Nigam Ltd (BSNL) launched the GRASSO, Wireless in Local Loop (WLL)-based public call offices in Rural Areas. This is the first time in the country that such a scheme, aimed at improving connectivity in the rural areas has been launched. The GRASSO project was formally inaugurated by Sri Buddhadeb Bhattacharya, Honorable Chief Minister of West Bengal in presence of Sri Prithipal Singh, Chairman Cum Managing Director of BSNL and Md. Salim, MIC Youth Services. We have already installed 300nos. of mobile PCO’s in the eight districts for entrepreneurs who have purchased the sets outright. The second phase of the programme will commence from 21st July, 2003 in the remaining 10 districts.

Grameen Sanchar Society is the “BULK FRANCHISEE’’ for this service. The West Bengal Government has agreed to facilitate the initiative and provide assistance in setting up Rural PCO’s and Internet kiosks in the rural areas.

The State Government has already forwarded this project to SLBC vide memorandum no. 37-YS/2003, dated, Kolkata, the 28th January, 2003 by the Joint Secretary / Govt. of West Bengal in the matter of Extension of B.S.K.P. (January, 2003) to Rural Areas in respect of schemes co-sponsored by GRASSO following guidelines shall be applicable to the schemes under Bangla Swanirbhar Karmasansthan Prakalpa.

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The Action Plan

The society governing body members launched the Grasso campaign for a novel integrated rural development programme.

The roles of the financial Institutions have to play must be proactive to ensure a successful model in the future.

We now enter the more critical area of financing & risk management of the financial exposure of the project for the loan - candidates. Most the banks surveyed during the pre-feasibility look at our project angle & the structured nature of the scheme held out limited experimental commitments, which could not be crystallized till date, due to inherent apathy in the banking system.

The Grasso campaign for a novel integrated rural development programme is networked throughout all the 18 districts of West Bengal. This is a novel pioneering joint venture initiative to usher in a unique approach to establish rural telephony in the country. For the first time in India A PILOT SCHEME TROUGH BULK FRANCHISEE  for rural PCO’s with limited mobility and STD / ISD FACILITIES has been executed under the supervision of an NGO throughout the State of West Bengal.

Till date nearly 600 units have become functional without any support from any Financial institutions except WBMDFC

A breakup of the district wise feature of the applications reveals that a large number of people have opted to respond with 100% own funds numbering over 1165 candidates in the telephone & internet segment, with the idea of joining with the society’s integrated guaranteed self employment generation potential.

The overall result of the 1st Phase of the campaign is reproduced hereunder

On the basis of these findings we submitted the entire 1st phase list comprising the self financed applicants & people Below the Poverty Line (avg. family income @24000\-pa) to the state government departments.

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Securitization & Responsibilities of GRASSO

Grasso is the principal franchisee and the loan account is created on the individual beneficiaries who are custodians of the PCO. Each month after one month moratorium from the date of the loan disbursement the EMI is credited with the designated bank account through GRASSO officials. The bank\ FI’s disbursing the loan pays for the instruments by way of cheque to GRASSO who takes on the entire responsibilities of coordinating in all technical and service related matters like servicing of instruments, collections of bills, complaints redressal and other matters with BSNL.

Key Factors for Success

GRASSO has conceived a holistic approach by combining the available opportunities within the framework of the existing declared poverty alleviation programmes & schemes and the basic communication requirements of West Bengal’s rural population.

The projects involve multiple layers of authority in the State & Central Governments. To start with, the work involves BSNL, Ministry of Rural Development and Dept. of Banking from the Central Govt. jurisdiction. Apart from these the State Govt. of West Bengal’s Department of Youth Services & Self Employment (both under one single Minister at the moment) and the Department of Rural Development will be involved in facilitating the project on the ground.

GRASSO believes that every service must be a commercially viable proposition if it is to be sustainable. The plan complements the existing social initiatives of BSNL’S VPT scheme by adding timely revenue collection in the scheme. GRASSO is acts as an agent for BSNL for the billing & recovery business to ensure all round success of the venture.

The GRASSO project is a win–win proposition for both GRASSO and BSNL.

BSNL has laid out the basic infrastructure at a huge public cost which needs to be backed up by a business plan that will generate a steady revenue stream. The proposal can also be viewed as a VIABLE ECONOMIC MODEL, using GRASSO as an outsourcing agency. BSNL will provide the backbone for connectivity, vital for rural upliftment while the Society will act as a networked coordinator. GRASSO identifies business opportunities, individuals, facilitates financing, provides training and installation support as well as billing and collection facilities for the operators.

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