Page 15 - Market Creation for Clean Energy Access - Insights from Jeevika-TERI partnership in Bihar
P. 15
Institutionalizing EE • A current account with any bank in India is a must,
preferably registered in the name of the EE.
The institutionalization of EE can be classified
into two broad stages—pre-institutionalization • For all business-to-consumer and business-to-
and post-institutionalization. In the pre- business transactions, the enterprise needs letter
institutionalization stage, the entrepreneur must heads, bill books, visiting cards, sign boards, and
satisfy one major prerequisite, that is, land or a invoice pads that carry the name, address, and TIN
premise to set up a shop. Entrepreneurs who number of the enterprise.
do not already own a shop or piece of land can
rent premises9. As per Ministry of Micro, Small • The energy entrepreneur may file Memorandum of
and Medium Enterprises (2015), other important Micro-Enterprise with the local District Industries
considerations include: Centre. This is optional, though it may garner a
• The site or location of the EE shop is in benefit in future.
accordance with the laws of the government and In the post-institutionalization stage, linking the EE
the guidelines of its local administrative units. with the market value chain is the most vital activity.
• The energy entrepreneur must possess a For a start-up, in order to attract footfalls at the retail
basic understanding of business and electrical outlet, a significant amount of marketing and branding
appliances/equipment. is required. Operating at a hamlet or village level, EE
• EEs will need to get a clearance from the Bureau may not receive a huge number of footfalls. Hence,
of Indian Standards (BIS) to undertake sales and a strategic location of the enterprise is important.
services of electrical appliances. For example in India, such EEs may be located near
• Obtaining taxpayer identification number areas of busy local activity, such as bus stands, railway
(TIN) is mandatory for undertaking sales and stations, the main market, or near key government
for procurement of material/equipment form institutions or health centres.
manufacturer/distributor/supplier. The TIN is a
unique number allotted by the Commercial Tax Harnessing EE network
Department of a state and must be mentioned
in all Value Added Tax (VAT) transactions and Scale brings economy and the same holds true for
correspondence. an EE that functions at the village level. EEs operating
• Energy entrepreneurs must have a Permanent in a cluster earn outright benefits in terms of their joint
Account Number, a ten-digit alphanumeric negotiating power with the manufacturer.
number allotted by the Income Tax Department of It also allows for streamlining the procurement of
India. inventory and spares management. Effective networks
attract flexible credit facilities from manufacturers
and distributors.
LaBL Publication 15
preferably registered in the name of the EE.
The institutionalization of EE can be classified
into two broad stages—pre-institutionalization • For all business-to-consumer and business-to-
and post-institutionalization. In the pre- business transactions, the enterprise needs letter
institutionalization stage, the entrepreneur must heads, bill books, visiting cards, sign boards, and
satisfy one major prerequisite, that is, land or a invoice pads that carry the name, address, and TIN
premise to set up a shop. Entrepreneurs who number of the enterprise.
do not already own a shop or piece of land can
rent premises9. As per Ministry of Micro, Small • The energy entrepreneur may file Memorandum of
and Medium Enterprises (2015), other important Micro-Enterprise with the local District Industries
considerations include: Centre. This is optional, though it may garner a
• The site or location of the EE shop is in benefit in future.
accordance with the laws of the government and In the post-institutionalization stage, linking the EE
the guidelines of its local administrative units. with the market value chain is the most vital activity.
• The energy entrepreneur must possess a For a start-up, in order to attract footfalls at the retail
basic understanding of business and electrical outlet, a significant amount of marketing and branding
appliances/equipment. is required. Operating at a hamlet or village level, EE
• EEs will need to get a clearance from the Bureau may not receive a huge number of footfalls. Hence,
of Indian Standards (BIS) to undertake sales and a strategic location of the enterprise is important.
services of electrical appliances. For example in India, such EEs may be located near
• Obtaining taxpayer identification number areas of busy local activity, such as bus stands, railway
(TIN) is mandatory for undertaking sales and stations, the main market, or near key government
for procurement of material/equipment form institutions or health centres.
manufacturer/distributor/supplier. The TIN is a
unique number allotted by the Commercial Tax Harnessing EE network
Department of a state and must be mentioned
in all Value Added Tax (VAT) transactions and Scale brings economy and the same holds true for
correspondence. an EE that functions at the village level. EEs operating
• Energy entrepreneurs must have a Permanent in a cluster earn outright benefits in terms of their joint
Account Number, a ten-digit alphanumeric negotiating power with the manufacturer.
number allotted by the Income Tax Department of It also allows for streamlining the procurement of
India. inventory and spares management. Effective networks
attract flexible credit facilities from manufacturers
and distributors.
LaBL Publication 15
