Appendices · The People's Model — Manifesto v2026

Manifesto_Vol3_AppE_HelmetUnitEconomics_v1.0_c0626.docx

This Appendix is the canonical unit-economics model for the Helmet Programme — the first product of the Karnataka State Manufacturing Network (Vol I Ch…

Read this chapter in the interactive reader, or download the full 601-page manifesto (PDF).

The People’s Model

Manifesto v2026

Volume III — Implementation Handbook

Appendix E

Helmet Programme — Unit Economics

Canonical model for the first State Manufacturing Network product.

E.1 Purpose

This Appendix is the canonical unit-economics model for the Helmet Programme — the first product of the Karnataka State Manufacturing Network (Vol I Ch 5). The figures in Vol I Ch 5 are illustrative; the figures in this Appendix are the operating model that the programme uses on the Open Ledger.

The Helmet Programme is intentionally small. Its purpose is to prove four propositions: (1) the state can build manufacturing capability at unit-cost discipline; (2) margin can be transparently ring-fenced into a named public-good fund; (3) the marginal road-safety outcome is measurable; (4) the same logic transfers to other State Manufacturing Network items (school furniture, basic medical consumables, water meters, LED streetlights).

E.2 Product specification

ISI-certified motorcycle helmet (IS 4151:2015 compliant) — full-face and open-face variants.
Sourced shell, ABS thermoplastic. Sourced EPS liner. Visor (full-face variant). Strap with quick-release buckle. Reflective decals (mandatory).
Two sizes only at launch: Medium and Large. Small added at Year 2.
Manufactured in two State Production Units (SPU-1 in north Karnataka, SPU-2 in coastal Karnataka) for transport-cost balance.

E.3 Unit cost build (steady-state, Year 3, per helmet)

E.4 Margin and sale price

E.5 Production trajectory

E.6 Road-Safety & Trauma-Care Fund flows

E.7 Risk and sensitivity

Raw-material price risk: ABS thermoplastic + EPS pricing tracked monthly. Forward-cover on KPPP terms permitted up to 6 months.
Demand risk: helmet demand depends on enforcement intensity. Enforcement (Karnataka Motor Vehicles compliance) is a separate workstream — the Helmet Programme is a complement, not a substitute.
Quality risk: BIS-accredited testing on every batch; failed batches destroyed and disclosed.
Capture risk: open tender on KPPP for raw materials; rotation of suppliers; conflict-of-interest register; bidder-floor rule.
Sunset clause: if private-market helmet prices fall such that the state-margin model no longer adds value, the Programme transitions to a regulation-and-subsidy model. The decision criteria are published.

E.8 Cross-references

Volume I Chapter 5 — From Contractor Raj to State Capacity. The Helmet Programme is the worked example.
Volume II Chapter 8 — Health as a Human Right. Trauma-care network is funded in part from this Appendix.
Volume II Chapter 9 — Cities 2.0. Sheet H.047 road safety urban design converges with the Programme.
Volume III Appendix B — Public Project Lifecycle SOP. Manufacturing-unit commissioning follows the SOP.
Volume III Appendix H — Programme sheet H.021 (Emergency & Trauma Care Network) is the principal downstream consumer.

Architecture cross-reference

Vocabulary aligned with Vol I Ch 2: ’Open Ledger’ = financial-spine OCDS-aligned surface (App D); ’Karnataka Open Data Portal’ = time-series/dataset surface (App H sheet H.233); ’Citizen Data Trust’ = personal-records surface; ’Karnataka State Service Log (KSSL)’ = mediation and cryptographic-anchoring layer (App H sheet H.230); ’JANATA’ = citizen front door (one of four — Officer Console, Business Portal, Civil Society Interface). Statutory institutions: Karnataka Cyber Security Operations Centre (CSOC, App H sheet H.231), Citizen Consent Ledger (App H sheet H.232), Civil-society Independent Audit Board (Vol I Ch 6). Statutory backing in App I.

Cost line — Rs. per unit — Notes

Raw materials (shell, EPS, hardware) — 265 — Open tender on KPPP. Bidder-floor rule applies (Vol I Sec. 1.7 safeguard 6).

Labour (manufacturing wages + benefits) — 85 — Wages per Karnataka minimum-wage notification. Benefits per state norms.

Utilities (power, water) — 12 — Karnataka industrial tariff.

Quality testing (in-process + batch) — 18 — BIS-accredited test lab, located on-site at SPU-1.

Logistics to district distribution points — 30 — Bundled with other Network items where co-located.

Distribution-point overhead (kiosk, enforcement points) — 20 — Shared with police road-safety distribution.

Plant overhead + maintenance allocation — 20 — Maintenance-first rule (Vol I Sec. 3.4).

TOTAL manufacturing + delivery cost — ≈ 450 — All figures publish monthly on Open Ledger with district breakdowns.

Line — Value — Notes

Manufacturing + delivery cost — ₹450 — From Sec. E.3.

Margin (transparent, capped at 30%) — ₹135 — Cap published; margin method published; audited annually.

Kiosk sale price — ₹585 — Single statewide price. No regional variation.

Margin destination — Road Safety & Trauma Care Fund — Ring-fenced, published on Open Ledger monthly. Cross-references Vol II Ch 8 (Trauma Care Network).

Phase — Annual units — Capacity & operating commitments

Year 1 (Foundations) — 100,000 — SPU-1 commissioned. ISI certification complete. Distribution in five enforcement-pilot districts.

Year 2 — 300,000 — SPU-1 at single-shift capacity. Small-size SKU added. Eight more districts.

Year 3 (steady-state target) — 500,000 — SPU-1 at two-shift capacity. SPU-2 commissioned. Statewide distribution begins.

Year 5 (Build-out) — 1,200,000 — Both SPUs at full capacity. ISI re-certification cycle confirms compliance.

Year 10 (Consolidation target) — 2,000,000 — Steady demand. Margin and fund tracked annually.

Phase — Annual margin pool (approx) — Indicative use

Year 1 — ₹1.35 cr — Pilot road-safety design audits in five districts; bridges to Vol II Ch 9 sheet H.047.

Year 2 — ₹4.05 cr — Trauma-care network upgrades in highway corridors.

Year 3 — ₹6.75 cr — Steady-state. Margin reconciled against published trauma-care unit costs.

Year 5 — ₹16.2 cr — Material funding contribution to Vol II Ch 8 sheet H.021 trauma network.

Year 10 — ₹27 cr — Long-arc contribution; programme sunset criteria reviewed.

← Manifesto_Vol3_AppD_OpenLedgerDataDict_v1.0_c0626.docx · Manifesto_Vol3_AppF_ProjectDeliveryCadre_v1.0_c0626.docx →

This is a chapter of The People's Model manifesto for Karnataka — published in full for public review. Every claim may be challenged: write to [email protected].