ECONOMIC EVALUATION OF COMMUNITY BIOGAS PLANTS IN NORTH GUJARAT AGRO-CLIMATIC ZONE
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Date
1994
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AAU, Anand
Abstract
The present investigation was carried out in Mehsana district of North Gujarat Agro-climatic Zone to make an economic evaluation of the community biogas plants (CBPs). For the investigation, five villages having CBPs were chosen. The beneficiaries of the community biogas programme were grouped into small and large size groups according to their land holding size and thereafter five member beneficiaries from each group were chosen at random. Thus, the total sample consisted of 50 respondents. The required data were collected by survey method during the year 1991-92. To measure the efficiency of investment in CBPs, the economic evaluation of different capacities of plants was made using the concepts of Net Present Worth, Benefit Cost Ratio, Pay Back Period and Internal Rate of Return. The initial investment at constant prices in largest and smallest biogas units was Rs.12,26,395 and 3 Rs,2,66,251 respectively. The investment per m capacity *in respective plants came to about Rs.2,000.5 and Rs.1,836.2, The annual total cost of production of gas was observed to increase with plant size from Rs.62,493 for a unit of minimum capacity to Rs.4,33,814 for the maximum capacity unit. The total benefits realised by the co-operative societies of member beneficiaries (co-ops) of Vadpura, Gokulgadh, Meloj, Varsila and Methan units were about Rs.80,578, Rs.1,68,832, Rs.1,81,372, Rs.2,77,256 and Rs.7,88,024. The net present worths of all the units were positive and reasonably high at all the three discount rates of 10, 15 and 17 per cent and under all the three subsidy situations (i.e.. Zero per cent, 70 per cent and 90 per cent subsidies). The benefit cost ratios of these units at the above discount rates and subsidies were also greater than unity. It indicates that the investment in CBPs was economically viable. The estimated pay back periods revealed that the gas units would take 2.67 years to 4.70 years under without subsidy situation and relatively less time i,e, 0.29 years to 0.47 years only at 90 per cent subsidy depending on plant size. The internal rates of return of all units were much higher than the prevailing interest rate of 15 per cent. All the CBPs were organised and managed by the co-operative societies of member-beneficiaries. The members faced-more or less similar technical, socio-economic and organisational problems, To satisfy the high expectations of members there is an urgent need to develop local resourcefulness,leadership and management qualities among the local people in the area, For the successfully running of the CBP, it should be well designed and the employees of co-ops be provided necessary training in operating and making minor repairs of the units.
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Keywords
Agricultural Economics, Agriculture, EVALUATION