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12. Risk Assessment and Contingency Plans

Some of the anticipated risks that are likely to pose constraints to our enterprise are highlighted below keeping in mind the susceptibility of the business prospects involved at different levels have been highlighted below. These are listed as follows along with some approaches for the remedial measures:

12.1 Low Demand

To make any service financially viable, requirement of service to the people is very important. Operating in the rural area may be resulting in lower requirement which can adversely impact running this service. Again, to charge for free commodity available to the people (may not be safe) leads to paranoidism.

12.2 Monitoring

Service monitoring becomes a tedious process as it happens to be difficult to coordinate among all partners simultaneously. Most probably, having plant established in villages creates distance between place of operation and partners residing somewhere, at sometimes, cause's operational problem.

12.3 Inadequate Electricity Supply

The overall condition of electricity supply in villages throughout the country is not very good. While villages in states like Gujarat, Maharashtra receives good amount of electricity supply, the condition of villages in states like Bihar, Uttar Pradesh is bad. So dependence of water purification plant electricity is very crucial factor in this service. Unless, technology like solar or bio-mass gasifier comes with full force, a threat to this business will continue to be running.

12.4 Government schemes

Generally, government schemes in drinking water sector are supposed to be a threat to private services in this sector. This is because of the fact that government schemes with the help of its existing institutional set-up and workforce can spread in big way as well as in remote areas. The government schemes also do not look much at financial viability of the service because they do it completely for social cause whereas a private business always wants to achieve financial viability, therefore, posing a great challenge to private business models.

12.5 NGOs Working on Grants

Organization coming in this sector working on grants and donations are supposed to be more competitive in comparison to private business as it can provide more lucrative proposition to the users. This could be possible in case business run on grants basically look for recovery of cost of operation and maintenance and not the profit while the service perspective of a private service is to earn profit.

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* Contributed by: -
Amit Goel has done B. Tech. in Computer Science Engineering from Technological Institute of Textile & Sciences (TIT&S) Haryana. Worked as Software Engineer – Technology at HCL Technologies Ltd, New Delhi. Presently he is doing Post Graduate Diploma in Rural Management from the Institute of Rural Management Anand (IRMA), Gujarat.
Mohit Goel has completed his Bachelor of Engineering (Computer Science) from Netaji Subhas Institute of Technology, Delhi University & is currently working as QA Lead at Mtree Software Limited.