RURAL INDUSTRIALISATION

Rural Industrialisation

V.A. Pai Panandikerand

Arun Sud

Consultant :

P.K.J. Menon

FundedbytheR&DFundState Bank of India

oxFoRD &IBH PUFLISHING CO. PVT: LTD'New Delhi PombaY Calcutta

rsBN 81-204-0119+0

'4& IBH Publkhing Co. pvt. Ltd.,AT

]0 032

Foreword

So much has been laid in store for the Rural Industrialisation

of the country by the pdlitical leaders and planners, that the

programme has acquired .a great deal of significance in the

alleviation of poverty and the development of the weaker sec-

tions of the Indian society. The Sixth Plan (1980-85) provided

for about Rs. 17,300 crores fot the weaker sections under the

various heads, and the Seventh Plan provisions are of the order

ol Rs. 34,267 crores.

The Committee on the Development of Backward Areas ofthe Planning Commission under the Chairmanship of Shri

B. Sivaraman has recently examined, inter alia, the question of

rural industrialisation in great details and has reached some

very basic policy recommendations.The present study was a product ol action-research in a

single backward district of Alwar of Rajasthan state' While

its conclusions cannot be extended to the whole country' w€

have no doubt that the problems faced elsewhere will not be

materially very different. The study therefore calls for the

attention of all those interested in this field'

We wish to record our deepest appreciation of the financial

and other assistance rendered by the State Bank of India'

Shti P.C.D. Narhbiar, the then chairman of the SBI, and Shri

R.P. Goyal the then Deputy Managing Director and later the

chairman, gave us their unstinted support' So did Shri G'S'

Srivastava, Chief General Manager, Delhi, of the SBI' Ir fact'

both Shri Goyal and Shri Srivastava petsonally visited the pro-

ject work place during the action-research ph'ase which helped a

gr.ut a.uiin bank financing of the rural artisans' We also wish

io record our appreciation of the help rendered by Shri G'

Kathuria, the Chief Regional Manager of the SBI at Jaipur'

\!

vt

Bhanot, the Indugtries Secrerary

FOREWORD

vernment of Rajasthan atChief Secretary Shri G. K.d Director Industries as wellat Alwar gave us invalu-

the action-research willat the centre and in the

V.A. Par PANANDIKER

Director

as the successive District Collable help. We record our deep ation of this help.

Shri P.K.J. Menon, former, who acted as our Con-e help in approaching thevarious stages.Niloy Bhattacharya, Field

and had a first hand tasteand industrialists; they

the villages around Alwar.to live through the

ould have missed a great

It is our hope that the resultsbenefit the Governmental policy btstates and the banking industry.

Centre for Pol.icy F[esearchNew DelhiJune l986

I

IIi

{

Prefuce

The idea for this study originated when the Government ofIndia announced an unprecedented allocation of Rs. 1'410

crores in its Draft Sixth Five Year Plan (1978-83) for the pro'

motion of village and small industries sector. This amount

represented an increase of 176 per cent over'the plan allocation

for this sector under the Fifth Plan, and in nominal terms

represented an increase larger than the total funds allocated for

the promotion of this sector under all the previous plans put

together. The programme was considered the toar de force ofthe rural develoPment Programme.

When we disoussed the possibility of the study with seniot

officials of the State Bank of India, we received a great deal

of encouragement. Especially to conduct an in-depth inquiry

into the level of preparedness of the rural areas to translate the

Plan targets into actual performance. Our idea of undertaking

this project was thus mooted partially by a desire to assess the

rationale behind the major governmental commitment to the

rural sector and partially towards public policy making in deve-

lopiag a feasible model of rural industrialisation which could be

replicated,One of the fundamental considerations in evolving the

research strategy for the study was therefore, to have, as best

as possible, a systematic representative and non-arbitraryapproach which could, through a face to face encounter with the

lowest level of problems throw up increasingly reliable data toaid decision-making. It was with these considerations thatinstead ofthe usual 'hit-and-run' kind of survey research, we

decided to adopt the 'action research' method which in essence

stands for studying the effects of change as it happens.

[n implementing an 'action-research' project on such a

vlll

major topic as ruraldent or indigenousproblems. And weencounter with thesehighlighting certain

prororype,did, in amp

rural industrialisation. Some ofrelate to the conduct of programresearch, For instance, thefield activists who have a first handwhich the measurements were rofurther compounded by inhospitaptessure and matetial constraints. Iwe were at time folrced to hasten thunavoidable shorttcuts. Such shorknowledge of what the implicatiotrs

existed, then given a direction and I

policy, rural industfies would sprin

. ward areas will be prima facie susl' cities of such areas are adequatelvdot be€n done in Alwar and we tof the country.

We are well aware that it mayimplications of such a conr-'lrr<ionimplications of such a conclusion.stayed for two long years in the vi

. having lived with the people, whoto the Plan objectiv6s, we feel allstress the point we 4re trying to mau8 to s8y a word albout the

heretofore lored problem areas of

PRBFACE

without adequate prece-anticipated running intomeasure. But through anthe project succeeded in

more important ones facedg the 'action' part of action

of locating well-trainedof the cultural context intaken. The problem gotfield conditions, time

spite of our best intentions,procedures and resort tots were taken with full

push by a soundup at a reasonable pace in

till the absorptive capa-t up. This homework wasin most of the districts

difficult to face up to theowever, some of us having

of Alwar and actuallycan give concrete shapemore in a -position toAnd that also enables

very

ject flndings. Thesb were inevitablewould be for the final oro-

We had selected the projectblems."rural industrialisation"

and decided to exebute it in At district under the classic'natu1al endowmerlt' premise that

' raw materials, instirtutional supportif necessary infrastructure.

d other industrial inputs

the villages. Alas, our Alwar experi ce showed that life is verycrucial things we foundmuch more complioated. One of t

was that more tharj anything else,trained class of entfepreneurs is the

a well educated and well

progra1nme of rural industrialisatition of entrepreneufship rules out

ost critical input in any. To the extent that crea-y short-term solutions, the

suocess of ambitidus plans tci ckly industrialise thc back-

L.

adopted by us namcly,

PREFACB

'intrsduction and observation of planned social change. In a

country, where the distance between the policy'maker and the

small man in the street f;or whom the policies are made is so

large,and areas of .darkness so vast in comparison with the

few patchee of knowledge'in the realm 'of development adminis-

tration, we think that more and more action oriented researches

would be useful. It is true that 'action'research' presents its

own peculiar problem, but it is through an encounter with these

very problems that one can have a feel of the operational diffi'culties faced at the grabsroots level in introducing planned

social interventions.For instande, in Alwar we found that the best times to con-

tact the maximum number of pe.rsons in a village was either tomeet ihem before 6.30 ia the morning that is' before they went

out to the fields or after 7.30 in the evening after they returnEd

from the fields and ate their evening meal. No wonder exten'

sion functionaries of most development agencies with ten-to'five working hours report more than half the population as "notavailable at site". In most of the distant and otherwise inacces-

sible vitlages our field activists had to stay overnight in order

to contact tfoe maximum number of people both in the evening

and the next morning.. Since public transport in Alwar district is virtually a tr'tzl,

sur field activists had to use a motor cycle. Even the strurdy

'bike' broke down under the trying conditions forcing the field

activists to spend many a night in the villages. On all such

occasions they had to take shelter either in the " Panchayat

Gksr" it therc happened to be one, or in the house of a 'Sar'panch, Panch, Panchayat Secretary, Village level worker, orwhosoever agreed to play the 'host'.

At least in Alwar we found that large parts of the district

failed to attract the attetrtion of the extension workers of most

development agencies simply because the approach roads (often

dirt tracks) leading to these areas get flooded for a few months

each year rendering servicing of loans, if at all given, well nigh

impossible. In addition, both in Ramgarh and Mandawar we

came across such villages where the intervening terrain could

not be traversed even on a motor cycle and we had to take

recourse to the only other means of transport available-our

ir

own feet. It wa$ action-literally !

In retrospect however, we feel that every moment of toil,often accompanied by halftea in every village visited duringwell worth it all.

We gratefully acknowledge tho and co-operation notalso of the various officers

, the Block Develop-and Mandawar blocks.commercial banks. We

workers of tbe industriesdepartment and the Khaili and. Industries Board whoreadily accompanied us to the as early as 6 a.m. in themornings and as late as 7 p.m. and in the evenings. Ifwe have sometimeg been critical these functionaries, it is

institutional weaknegsesessentially to locatq the structuralrather tban to blarte the indivi

At the Centre fior PolicyShri N.K. Mukarji, Shri Pran

the CPR, who typed and retyped$ages.

Centre for Policy ResearchNew Delhi

PRBFACB

"walking on two legs,"

cups of heavy and sugaryo years of field work was

senior colleaguesDr. Bhabani Sen

manuscript at various.

V.A. Per PeNetorrsnARUN SUD

ourand

gupta were among the many from suggestiotrs we hayebenefited a great deal. We owe a debt of gratitudeShri Trimbak Rao and other in the Typing Pool

toof

Contents

Foreword

Preface

Chapter I PrologueChapter 2 IntroductionChapter 3 The Setting and the Sample

Chapter 4 The Exploratory Phase

Chapter 5 Action Phase

Chapter 6 Financing Rural Industries

Chapter 7 Technical Skills Development andUpgradation

Chapt€r I Follow-upChapter 9 Overview and Principal ConclusionsChapter l0 Epilogue

Appendix I Socio-Fconomic Profile ofArtisan Entrepreneurs

Appendix II Socio-Economic Profile ofEntrepreneurs in theNon-traditional Sector

Appendix III Project Report-TractorRepair Unit

Index

viiI

26

34

57

74

ll8

163

18?

2t0226

234

240

246

249

'Cneprrn i

Prologue

ROLE OF INDUSTRIAL PIOLTCT: TNTERNATIONALPE.RSPECTIVE

An overview of the third world eeono*ric scenario in the post-colonial era positively indicbtes the decisive lole that industria'lisation has played in the context of natioflal development,Mind-boggling riddles of underdevelopment can be seen to havebeen tackled much mere ,effectively by such countries whichopted for rapid industrialisatiort than those which did not. Indus.trialisation and resultant utbanisation greatly facilitateil,theireconomi€s by providing marketS for primary products, supplyingconsumer goods at competitive prices, relieving pressure onagricultural land and generating employment in the non.farmsector.

The levels of indusftialisation achieved varied greatly even,

emongst countries with simllar huroan and natural endowrnent$;size and geographic location; and equal access to markets,capital and technology. Their performaace varied according tothe type of policy.pursued*a factor too often slighted by econo-

rfilc tndowment enthusiasts. The critical role of industrial policyin determining the use of available resources and in the develop-

ment of latent resources, in shaping the technical and economic

structure of manufacturing and therefore, in'givilrg a$ cconomya distinct direction, can hardly be overlooked.

On their libe'ration, .howovef, the most obvious example ofrapid indhstrialisation beforc developing countries was that ofthe centrally directod Soviet industrialisation model; but, bythat time the great depression of 1930's had also dtmonstratcd

i

mqny a government in the

RURAL INDUSTRIALISATION

not self-equiliberating andone form or another was in-

ons, most such countriesof government interventionide the social and physical

and other development. InStates generally

accepted the central role theY w to play in industri-alisation as part of theirdevelopment:

for overall growth and

Such recognition however, not mean abandoning Pri-a handful of countries. not-vate enterprise altogether except

ably, the People'f RePublic of Cl and Cuba. Most developing

countries chose to imPlement ir plans through a mix ofinvestment allocbtions and exPl

even wh€n the prlblic sgctor was tonus of manufacturing fell on the

industrial policies, whereplay a major role, the mair

entreprer:eurs. India is

one such country.The theoretiqal discussion

ment control and direction isthe extent to which Govern-

for optimal industrialgrowth has not {dvanced great}

actual experience has however srt

ofindustrial perfQrmance in the I

in the last three decades buttwo outstanding cases

-Second World War period,

In market econofsies the "hi1

has outshone all others in itscontrolled'.' Japanese model

while in centrally planned

ed to be most impressive. It will.programme is often acclaim-doubtedly be a futile exercise

to draw any mea0ingful ion from the "optimal paths

of industrialisation'l followed bynevertheless be instructive from

two countriesl but it willthe Indian standpoint where

the discussion crin industrial still invariably fails to go

beyond .the hiatu$ between rural urban or for thet mattersmall versus largo-scale

Japanese Industrihl f,xperience

The spectacular icome-back of J after the Second WorldWar offers both the industrialistsEmcient reason tp look et thatinquisitive int€rs$t. As a rai'

ls iqdustrial policy withWar offers both the industrialised well as developing countries

that even market economies we

that government intervention ievitable. As a rebult, with a few

it nascenthave to

PROLOGUE

recent past has been tempted to seek inspiration and guidancein formulating its own policies. The industrial policy mix ofJapan as ofl any society.for that matter is dictated by certainpsychological, historical, traditional, and geographic locationalfactors peculiar to that country which can neither be replicatednor artificially reproduced elsewhere. Notwithstanding itslimited relevance, it will nevertheless be a worthwhile exercise toexamine some of the specific policy thrusts of the Japaneseindustrial policy in the post.war reconstruction era. From theIndian standpoint it will be speciflcally pdrtinent to have a look ather industrial location policy, and the relative shares of differentindustrial sectors.

The process of industrialisation in the four industrial nerve-centres of Japan, namely, Tokyon Osaka, Nagoya and.Kita_Kyushu started as early as the'Meiji.Restoration of l86g in theform. of setting up government-owned factories in the fourcities. This early activity laid the foundations of the modern_day industrial Japan. During the post-war reconstruction years,the government concentrated on the development of these fourareas mainly which spearheaded the process of Japanese indus-trialisation leadingto the reconsolidation of Japan's industrialbase as well as the unprecedented spurt in industrial productiontbat subsequently followed.

Even while the problems ofexcessive industrial concentrationhad begun to manifest themselves by mid-1950's, the process ofindustrialisation in and around these industrial districts wasallowed to continue unabated. Even the ambitious IncomeDoubling Plan, 1960, followed by National Comprehensive Deve-lopment Plan, 1960, reinforced the leading role played by theexisting inductriat ccntres as it was contende4 that more thananything else the "Flans were concerned with the emcient perfor_mance of the economy:"l The Comprehensive Development planin particular, while suggesting measures for reducing gaps inindustrial development between various regions, recommendedestablishing new "Industrial Cities,l'r which through a repercus-sion eftct could stintutate ddyelopment of the regions in whichthey were located. What is portinent to note for rural industriali-sation protagonists in.India is the fact that in spite ofa veryhigh tempo of industrialisation and other infrastructure facili-, tiqs, including p very bigh levet ofedusationtbroughout.that

country, emphadis was laid oo

rather 3hsa hintefland industrial

RURAL INDUSTRIALTSA{IOI{

establishing industrial'cities'

land.man awareness

dawned long agd. As a result, e'{'en as early as the turn of this

century the Japhnese industry hfd beeun to be largely export

oriented. During the inter-war in particular, masses ofgadgets, toYs, low qualitY and other miscellaneous

merchandise were shipped to all lorners of the globe. But after

the Second World War the of International Trade and

entirely in favour of indus-Industry (MITI) changed thts

tries which reqrlrired intensive employment of capital and

technolosv suchl as steel, oil-leFning, petro'chemicals, auto-technologYmobiles, aircraftl electronic and industrial machinerY

of all sorts. Thub' mass rnass sales, and la.rge-scale

investments for development of technology were accorded the

highest PrioritY for enhanclng competitivity olJapanese Produots.

Although in terms of the clat

duction argument such a strategannrooriate in vlew of Japanfs ri

cal comparative costs of Pio-a strategylwould have appeared most in-

approPriate in of Japanfs refl factor endowment, but from

a long-range vlewPoint, these precisely the industries

where income elasticity of was high, technological Pro-could rise fast. "It was cleargress rapid and labour Productivi

that without these industries it d be difrcult to emPloy a

popuration of I d0 mlrion an$.diii .,Tr: :11{4 -11 111ii9.1:ih"t of Eutopt or America with Fight industries alone; whether

right or wrong Japan had to h]ave these heavy and chemical

iniustries."t Shduld that country have adopt€d the sirnple doct-

,rine of free tradf and entrusted lts future to the theory of com-

Oerman€ntly ha'le been disabled lfrom breaking away from the

Asian pattern of stagnation and

A cursory leview of JaPan?

v ?vr !J.

industrial performance in the

post-war years dmply proves the ionale of the policy of pro-

moting large-sc[le and ive industrial sector. An

cxamination ofl the'ihdividlal acturing industries shows

ttrat tho outPut bf tho'h€avy ohenical industries f,egister€d

PAOLOGT'B

a marked increase when compared to Small indubtry. Duringthe period 1955-68, while total production rose 7.1 times, theoutput of heavy and chemical industries expanded 9.5 times aadthat of light industries only 5.2 times. As a result the share ofheavy and chemical indus{ries rose from 45 to 60 per centa inthe total manufacturing production of Japan.

China's Industrial Policy

World over, scholars and academics in generat have a tendencyto draw comparisons between India and China if only because

the two Asian giants with the largest population in the world,have predominantly agrarian economies and are amongst thepoorest in the world. Indeed, even the Government of Indiacan be found frequently referring, in its various policy pro-.

nouncements and planning documents, to China's outstandingperformance and achievernents,E especially in the eottage andsmall-scale industry sectols. But a certain degree ofcautiooneeds to be exercised while attempting to draw 'lessons' for Indiafrom the Chinese experience since the so-called 'achievements'

may have a limited relevance after all, if only because ofaltogether different socio-economic and political systems obtain-able in the two.

For instance, comparisons are often drawn between the line.

of reasoning adopted by the Indian Planning Commission forthe simultaneous development of agrioulture and village indus-tries and their interdependent relationship, and that of Chinawhere it is best explained in terms of the policy of "walking ontwo legs". The explanation for adopting such a policy goes likethis in the Chinese context: "China is still a large agriculturalcountry and a majority of her population lives in the country-side. Agriculture must be rapidly developed in oider to meetrequirements for food, clothing and . industrial raw materials.Agriculture is also a potential market for industrial productsHowever, agricgllural devglopment depends on the suppord ofindustry which can provide farm machinery, electricity, chenicelfertilisers, and insecticides which are needed in large quartities.Thus, industry and agriculture must be developed simultaneouslyae they complement each other."e Ooe of the very significantcharacteristics. of China's rural industrial development experi:

l

part of it oan be seen in

RURAL INDUSTRIALISATION

ence, which has iits origins in country's peculiar social,

economic and polltical system, is t. the rural industries tendto narrow the gapl between the and urban workei. Factoryworkers continue to live in rural villages and draw wages nottoo different lroml their farming

The rationale and some ofrural small-scale industry in (

drawing comparisons with the ian experience in this field,

in so far as rural industrialisatiolby certain factors peculiar to that

developnrent proceeds to a poiflttrickle out into the rural areaS.e, But a ceitain degree of caution

ing lessons for India from the Chiscale industrialisation. Th€re.'

underlying assumptions ofneed to be clarified while

it builds its owns rather thanauthorities to buy the same

where its methods begin to

in the former is conditioned,? such as: (a) exces-

sive demand for agricultural produced in the modernsector in the local rural areas; (b) very poorly developed trans-portation system iand high costs; (c) the qualityand quantity of rdw materials; labour skills; (e) producer'sgoods; (f) the difficulty of mob;

able resources id the modernand using the locally avail-

able resources tn tne moo(

the local levet; and (h) wi; (g) financial resources atavailability of small out-

small for large-scale deve-croppings of ioal and limestone,lopment.

China's rural oommercial under which communes arefor buying heavy machineryordinarily not frec to go to the

also reinforces the need to rural small-scale industrv.Thus even if a coinmune saves upof machinery, it 4ay get it faster

money to buy a piece

wait for sanctions fronr the hifrom the city. Moreover, geol

units to their cliedtele comparedproximity of the rural

that of the larger units alsofacilitates them to understand and meet the needs of thelocal people. For instance, rice ters produced in one pro-vince may have n0 utility in theof a different crolping pattern.

ighbouring province becaugey, one of the most impoi-Ioping rural small-scale

bringing modern technologythan waiting until urban

fRoLoGOt : 1

county towns, nor all that 'small' as the number of personsemployed in each of these units can vary between 50 and 500.The definition of rural small-scale industry in China variesaccordingly as a particular unit fits into the peculiar Chineseadministrative system rather than by its location, size or scaleof operation.

In addition, profitability, which is tbe sine qua ion of anyenterprise whether codmercial or indirstrial in the outside:world,is the least of considerations in the case of China's rural smsll-scale industry. "A meaningful analysis of the raticinality orefficiency of snall-scale industry in China," observed the Ameri-can Rural Industry Delelation, "should address itself to themuch more important question as to: how effectively are theCbinese utilising the resources available to them to achieve theirobjectives."lo Together with this, the logic of, what tbe Chineseterm as "time-path of production"-a typically oriental argu-ment of learning by mistakes and experience-is rather intrigu:ingly difrcult to comprehend

According to this argument, a small plant itself goes fromsmall to big size, from indigenous to modern, and high cost to'low cost. Implicit in this formulation is tbe assumption that aplant cannot be big, modern and low cost in the future if it does

not go through the necessary industrial experience-like mobi-lising the masses in technological renovation and the capitalfunds from profits in the meantime. Eqfaly notewortby in thecontext of China's rural industrial sector is that, unlike Indiawhere the accent on rural industrialisation is for employmentgeneralion per se, there, agriculture is the foundationll and as

such in peak agricultural season, factory workers are promptlydespatched to the rural areas to work on the farms.rz As theAmerican Rural Industry Delegation to China observed: "... it isrural industry's impact on farm yields that provides the mainreason for that industry's eiistence."l3

Given the backdrop of peculiar circumstances obtained inChina, any attempt to draw lessons for India's rural industriali-sation programme can only be misleading. Except for the'factthat in both situations the intention is to check rural-to-urbaamigration, ensure widEr dispersal of industrial units, and greator

utilisation of locally available skills and resources, the raison

d'etre for promoting this sector in thetwo countries is vastly

N,URAL INDUSf RTALI$ATIoIT

fertiliser, cement and farmies in the rural industrial

q6etor, while in India all the three commodities are produced inthq me dium, and large-scale

Mare iqrportapllY, while in I employment generation is

a "weightlY condideration"t a prompting the cottage andthe only rationale for theirvillage industries isectors, in

qristence is to serye agriculture. l' industry's main priorityis to serve agriculfure' . . . Activi that deprive agriculture of

extent at least not servingpart of its labour force are, to

agriculture."tb Often rural industry units in China

are "under PressuPe. to erPand without any major increa-

sas in gqtployme4t."re In this np

to tLe India& thryst for exploitinglabour intonsive tochniques in tChina the accent is on the "mgdsr

diametrically opposedtle employment potential of

rural industries sector, inof those very techni'

ques in a capital-intensive diEqually important to bear mind, while trying to draw

parallels betweenr the two si is the fact that while in

for

defrnitionsls of rufal industry in the two countries, then

any exercise in conrparing the.two look self-defeating.

China the rationale for the existejudeBd by the eftent to whichreliance in Prod4cer goods, in $goods are complptely out of thsector. Indeed if one grasps the

EVOLUTION QF RURAL

Devel,oping coust4ies can broadlyin terms of the aPProaches tothem. Those whQ focusPed on co

involved assemblY of irnPorted ma

r€asontng for the former was

assambli-og industries woqld be

of rural industrial units issucceed in attaining self-

Indian situalion, producerpurview of rual industries

diference in the

POLICY IN INDIA

divided into two categoriegfollowed by

industries that mai4lyand those who follow-

ed the "basic industries appraach such as Iadia. While thethe capital gained through.

tues, so that thP ielled towards basic indus-effort would demand less

eapitql ini.tially; that of thelong-run would b$ sufficient to

was thgt high returns in the

inyss-Cmeqt:.

the burden of initisl hrgh

IPAObOGUE

Indeed the question of qapital formation was daliberated ingreal detail by the architects of Indian planqing. Free from the,

ideologiqal compulsions of the centrally planned societies, and'

also aware qf the dangets inh?rent in allowing the economic

,relations to develop frpely in response to the working !f nnarket

forces whic.h would not only have hindered economiQ develop-ment but even aggravated the existing inequalities further, theplanners in India opted fol an approach often referred to as the

"policy of gradualism". This policy believes that the fruits ofeconomic growth should be shared by the working classes ag

well. Although the process of transformation of an under-

developed econorny into a self-genetating one may take a littlolonger, the present generation should not be made to bear the

entire burden of economic growth by forcing it to keep extre-mely low levels of consumption, and a part of its burden should'

be transmitted to the future generations.

For achieving this, though the major portion of the capitalformation should be provided by domestic savings, yet a part

can be financed by the. receipt of foreign aid from friendlycountries. Justifying this line of approach, the First Five YearPlan oategorically stated: 'ilf it is not desired to secure a highrate of ca.pital formation right at the start at a cost of excessiveprivation which a reduction in the initial levels of consumptionwould entail, the goal of policy must be to ensure that a highportion of the additional incomes that accrue as a result of.development is saved and invested. This will, no doubt mearithat the rate at which the initial levels of consumption can beallowed to go up will rise only slowly, but the pressure onconsumption standards will at least be no worse thatr beforeand it might rvell become possible to permit moderate improve-ments. In other words, such a progtamme for stepping upcapital formation calls for sustained austerity rather than exces-sive degree of privation and suffering."te

Industrial Policy Resolution 1948

The Industrial Policy Rqsolution of 1948 vindicated what theresolution termed as the "elucidation of Govemment of India'sintentions on fun$amental aspects of industrial policy." Whilestressing the need for strengthening agricultural produotiou.

i

L

tn

which could form fihe backbone oflaid particular edphasis on the"In the present btate of theof the people are tfelow the subsition, "the emphasis should be on tboth agticultural and industrial;production of capiltal equipment olneeds of the pe4ple and of conwill increase eariings of foreignand ammunition, &tomic energywould be the explusive mthe state also took upon iteelfestablishing new undertakings iorest of the indusfrial field was [,though even in this sphere it uwould "progressivoly participate".

While spelling out theResolution assignbd a very promismall-scale industrial sector as itfor , employment generation,industrial concent[ation, and fornational wealth. flhe Resolutionas a generator for activisingmiddle class for inivestment in ithe firm opinion that this sectordistribution of inpomes originatthrough a large number offactors the Resolution clearlyscale industries have "a veryeconomy,":2 offeritrg as they do,cooperativeenterptis€. Moreover,cularly suited fot the better utilifor the achieventent of the localcertain types of essentialand agricultural implements.

Aware of the dangers posed tosector from the large-scalecular stress on protecting itinstancen it was catFgorically statedbe taken to elsure as to "ho* the t

RUNAL INDUSTRIALISAfION

economy, the Resolutionbasic industries:ion of

's economy, when the masslevel," states the Resolu-

expansion of productionand in particular on thegoods satisfying the basic

ties the exoort of whichexchange."zo Beside arms

railway transport, whichof the Central Government

absolute responsibility ofsix basic industries.2r The

open to private enterprise,made clear that the state

of the industrial sector thet place to the cottage and

considered most conducivetralisation of economic and

equitable distribution ofthp small-scale sector

of thewas of

small-sized savingsal ventures and

facilitates a more evenfrom the marketing sector

outlets. In view of all thesethat cottage and small-role in the national

for individual, village orthese industries "are parti-

of local resources and:sufficiency" in respect of

er goods like food, clothing

cottage and smallscalethe Resolution laid parti-

undue competition. Forsuitable measures would'mill industry can be

llPROLOGUE

made complementary to, rather than competitive with the hdnd-loom industry, which is the counfiy's largest and the bestorganised industry."ts

The Industrial Policy Resolution of 1948 also laid specialemphasis on the principle of cooperation in organising thecottage and snrall-scale industries in the country. Taking a ledffrom the successes of the Chinese cooperative rnovement in itsstruggle against Japanese itnperialism, the Resolution assertedthat: "One of the niaiir objectives will be to give a distinctlycooperative bias tci this (cottage and small.scale industries) fieldof industry." During and before the last war, even a predomi-nantly agricultural country like China showed what could bedone in this respect, and her mobile industrial cooperative unitswere of outstanding assistance in her struggle against JapanlThe present international situation is likely to lessen to amarked degree our.chances of getting capital goods for large-scale industry and the loeway must be made up by havingrecourse to small-size industrial cooperatives throughout thecountry.2a

In this manner the very first industrial policy pronouncement

of the Government of India after independence, while fullyappreciating the role of heavy and basic industries, also assign-

ed the household, cottage and small-scale industrial sector avery prominent place. Some of the main arguments in supportof this line of thinking are: (a) for every rupee of value addedin this sector, capital required is roughly one-third of tbatneeded in the large industty; (b) for providing employment toone berson, average investment required is apptoximately sixto ten times more in the large-scale sector than in the small-

scale sector: (c) for a large and overpoprilated country likeIndia, only the small-scale sector can provide a viable andprogressive decentralised sector of economy providing oppor-

tunities of work and income all over the country; (d) it can

ensure more equitable distribution of national income and alsoavoid the hazards of unplanned urbanisation; and (e) as theindustrial experience of Japan has proved that small enterpris€

can in most cases be as productive as the large industrial units,then given the paucity of resources in this country, it isdefinitely more prudent for India to opt for the expansioh ofthis sector rather than the capital-intensive large-scale sectof.

fi2

Rrst Five Yerr Plhn (f951-1956)

The policy direction showed by theof 1948 was giv{n practical con

Year Plan. Based on the Harrod-more stress on the develsector,z6 it also astsigned agricul

. wards the fulfilment of the .'

such as maximum production, fullof economic equality, andaohievement of those objectives thercgognised the crubial role whichtries could play, and declared"central place" in rulal {evelopr*went to the extent of assigningimportance as agriculturalof village industries should be as

as the increase in &griculturalbe separated from the other."2e

In the Indian gituation, equallmore important qonsiderationhas been the socioj-economic al;and village indust{ies sectors, in soconstitute an "es$ential element"unity and culture of the villagers.Plan not only dqmarcatred thebility of the Centtal and State C

village and small,-scale industriemeticulous care q series of steporganisation, statq policy,teehnical guidance; supply oflance.

Similarly, the documentv4rious stepss3 to be taken inundue competition with thespscial developmept programmegtries.sa The follolving is the listspecial village industries

l) Village oil ifdustry2) Soap-makiqg with neem oil

huRAL . r isDustRral,is,{fi o}il

Industrial Policy Resolutionthrough the First Five

model, though it laidof "high-growth modern.

the topmost Priority":e 1-objectives of planningyrnent, the attainment

justice,"2? Towards the

Planning Commission alsocottage and village indus-: village industries have aprogxamme.zs Indeed, it

village industries the same

itself: "the developmenta matter of State actionon. Indeed one cannot

important or perhaps even

employment generation,in promoting the cottageas rural arts and crafts

o in preserving the organicAs such the First Five Year

e spheres of responsi-vernments3r with respect tobut also suggested withfor their revival, such as

raw materials, research,and marketing assis-

in considerable detailto protect this sector from

sector, and also outlinedfor selected village indus-of industries identified for

{fidrc,i3uB la

' 3) Paddy husking4) Palm-Gur industry5) Gur and khandsari6) Leather industrY7) Woollen blankets8) High-grade hand-made PaPer

9) Bee-keepingl0) Cottage batch industryll) Khadi| 2) CoirIn this manner, the Planning Commission suggested both'

promotional as well as protective measuresss. for promoting

rural industrialisation. Perhaps no better evidence can be

given in support of the government's earnestness in promoting

this sector than tbe First Plan's unreserved declaration that itshould get the same pribrity ds agriculture, transport or

industry.tt It was therefore declared that "Finance for the

development of village industries has to be viewed as a probletn

liiseparable from finance for agriculture'"s? Furthermore,

being aware of the fact that the pattern of distribution of the

fruits of development invariably follows the pattern of distri'

bution of assets, the dopument laid particular emphasis on

organising the rural artisans on cooperative lines so as to ensule

that ttre poor may nbt be left out' Unless the "State Govern'-

ments ensure that the artisans are sufficiently organised.to be

oUt" to avail of technical and financial assistanc-e" deClared

the document "the srhall-scale industries pfogEamme cannot

iucceed."s8 And the b€st way to 6nsure this would be for the

State governments "to provide as far as possible cooperatively

for their essential requirernents",

' From the foregoing discussion it is thus amply clear that the

importance of the village 'and small-scale industries sector was

recbgnised at the outset by' the architects- of Indian Planning

ooi i"fy out of pure economic considerations but also for its

social signiflcance as it forms an inseparable part of the sdcio-

crittot"t-*ltito of the rural society in India' In recognition'of

ifi., "fr

bspects of village and small-scale industrlcs sector were

lone into considerable detail by thb Planning Commisslolt

while formulaiing the Firit Five Year Plan of independent

India.

ial Policy Resolution

t4

Indeed, as one sees thethrough various policy pronduring the last three decades ofthat the First Five Year Plan laidthe foundations for all the future

RURAL INDUSTRIALI$ATION

policy of lndia unfoldents and Plan documents

deveiopment, one findsthe basic guidelines andExcept for minor devia-

can be discerned through-In respect of rural indus-

years the only change has

both promotional as wellrre widespread growth of

Resolution also peclared lhatwould.... stress tfie role of cotlindustries in the developmgnt o

specific terms the 1956 Policy Resi

tions, a distinct continuity of .

out the history of planning intrialisation in pdrticular, overbeen with regard to ever increasinof this sector.

emphasis on the promotion

Industrial Policy Besolution 1956

of society" was for the firstlicy pronouncement of the

Industrial Policy Resoluticnwithout mincing words that

henceforth the Industrial Policv India "must be governedby.... the objectives of sociali "'e In the context of ruralindustrialisation, this change did however bring about anysignificant shift ip policy. F dng in the footsteps of its

esolution of 1948-the 1956predecessor-the Ilrdustrial Policy. Government of India

village and small-scalethe national economy." In

on stated, "They (villageand small-scale indusllies) p1sti immediate large-scale emp-loyment; they offel a method oftribution of the national income.

ing a more equitable dis-they facilitate an eflective

mobilisation of tesources of . caotherwise remain unutilised. Some

and skill which mightf the problems that unplan-be avoided by the establish-al production all over the

While highlighting the need Government's o'constant

of this vital sector, it onceattention"4r towafds the promoti,again recommended a series of stag, protectiverz fo4 the faster andrural industries. Similarly as in theof 1948, tho need for promoting

PROLOGUE 15

once again stressed. ,,The principle of cooperation should beapplied wherever possible" declared the Resolution and went onto say that "a steadily increasing portion of the activities oftheprivate sector should be developed along cooperative lines."lrIn this manner maximum emphasis was given on .,encouraging

the cooperatives in every way.,,44

Second Five Year Plan (1956-6f)

The Second Five Year plan based on the Mahalanobis model(which in turn was itself based on Feldman's model for the firstRussian Five Year Plan), like its predecessor, laid more empha_sis on the development of basic and heavy industries.as Buithiswas not done at the cost of the village and smafl industriessector. Indeed, guided by the principles of..socialistic pattbrnof society" aimed at decreasing inequalities in incomes and.wealth,ao Plan outlay for this vital sector was increased by morethan 548 per centaT over its predecessor.

The Planning Commission considered the village and smallindustries sector to be of such immense importance that it setup a separate village and small-scale industries (Second FiveYear Plan) Committee in June l95j to study the problems andsuggest programmes for the development of this sector. TheCommittee, commonly known as the Karve Committeeas laidspecial . emphasis on technical improvement in the sphere ofvillage and traditional industries, and called for greater econo-mic decentralisation throughout the country. Among oiherthings, the Committee very strongly recommended that .,what_

ever the villagers can undertake by way of improved industryin their own village, should be organised on a village basis."{,

Accordingly, the Second Five Year plan categorically statedthat the "sector of village and small-scale industries is not tobe viewed as a static part of the economy, but rather as a pro-gressive and efrcient decentralised sector. .. ."so The plan there_fore, laid great hopes on this sector for employment generationthrough the use of labour intensive techniques,Er and indeed,total transformation of the rural society in course of time. Jtstated "As the rural industry develops, technical changes lvilltake place in different fields and correspondingly, the pattern ofr$ral iodustrialisation will also change from simple crafts meet-

16

Thlrd Five Year SIan (196156)

In the Third Five Year Plan

down for all the economic

during the plan Poriod "the natioit ffve years as has been achieve

and Second Plan."63 The onlY

Frbdecessors was in respect of asCi

agriculture indtead of heavy induslhean that the laiter was ignored,

"principal aims"55 of the Plan,sustaining the prolcess of develop

during the earlier two Plans; was

of the Plan.53

In the sPherd of village andCommission apPointed a numbermittees to study the Progressand make suitabld recommendatisis was laid in the Third Plangrowth of industrfes in rural areais

objective of Providing "oPPcment in a disPersd manner allldv for this sectbr was also

over the Seeond Plan.

Fourih five YearrPlan (1969-197

Even in the Fourth Five Yearmade except thatlthe centrally sP

ject (RIP) Prografnme which wab

intention of intdnsive developnrral areas was Wound up as thcdered,'encouragirlg'6D enough byof the main cotrsiderations forthat it had not hdlped in any waytrial consentrdtidn in big cities "wris one of its prirnry

RURAL INDUSTRIALi3ATION

es based on steadily

to satisfy the needs of a

ambitious targets were laidand it was announced tbat

sets out to achieve as much

in the ten years of the Firstchange in this Plan from its

"the first priority"s4 to. This however does not

it still constituted one of the

d indeed the importance oft of this vital sector beguh

hlighted throughout the text

industries the PlanningWorking Groups and Com-

during the earlier two plans

Accordingly, great emPha-

for "encouraging the furtherand in small towns" with theties of income and employ-

the countrv."67 Plan out-by nearly 5l per centor

no basic shift in policy was

Rural Industries Pro-in 1962-63 with the

of small industries in theprogress made was not consi-e Commission. Besides, onending up tiie programme wasd stemmi g tb€ tide of indus-

fnol@rlB l7

objcctives. With the intent of reversing this process the FourthPlan heralded the era of cotcessional finaoce and liberal aid forindustrial decentralisation in the rural areas.€o

In addition, the plan also laid great emphasis on technicalimprovement in the village and small industries sector. Com-

menting on technological runemployment which would resultfrom the adoption of improved techniques of production thedocument observed: "the country cannot afford to freeze theexisting technological, situation merely for the sake of avoidingunemployment or providing additional employment. Such actionolly postpones the problem to a later date when its solutionmay become even more dimcult."6l

The Fourth Plan clearly recognised the need for providingincreasing opportunities of employment in non-farm activitiesin the rural areas. Particularly in view of the grave danger oflong term costs8s of expanding urban industrial centres, the"Fourih Plan rilso imreased the outlay for the village and small

Mustries sector from Rs. 264 crores in the Third Plan to Rs.

293 crores in the Fourth P1an"6t-an increase of nearly 11 per-

cent,Government of India decisions on Industrial Policy issued in

February 1973 once again reiterated that: "Government's policy

will continue to encourage competent small and medium

enterprises in all industries"'Ba Similarly Government's stand

on promoting industrial coop€ratives especially in industriesproducing agricultural inputs or processing agricultural raw

mater'ials66 was also vindicated through these decisions.

Fiftb Five Year Plan (1974-79)

Financial outlay for the promotion of village and small indus-tries was considerably increased by more than 82 per cent ovel

, the previous plan period, a$ it increased from Rs. 293 crores toRs. 535.03 crores, But the,basic thrust of the policy in respect

of this sector continued to be the same as in all the previous

five year plans.

Statenrent of Industriel Policy (Decembe r 23, 1977)

However, with the cliange of the national government in 1977

l8

in the form of thEthe industrial policy of thefor the first time. In its first pDecember 1977 tble new natioual

government ia

RURAL INDUSTRIALISATION

Janata P4rty' oscent to power, a change in

'ar has been mainly on largecompletely relegating

It is the firm policy of this"06 The basic tenet of the

d be oroduced in the smdll-scale sector must necessarily be produced.

The government was so iastic about the promotionof village and smAll industries it announced an unpreceden-ted increase of 163.5 per cent the financial outlay for the

ies. "It is the policy oft. "to see that no worth-

industry is given up for wantsuggested included:

K.V.I.C. expanded from 180items to more than 800 items:68

b) Bxtended the criteria oftries sector in tfre same way

on to the cottage indus-in the case of small-scale

the facilitiis of pro-marketing survey, pur-

70 and developniett ofappropriate technblogy;?r and' d) Prescribed negative for curbing the expansion

of urban industrialisation?l and suggested the setting up ofDistrict Industries Centresindustrialisation.T3

to k after all aspects of rural

With . these btoad features to the industrial policy ofthe country the Jahata Governmendirection that is being given tocountry will help ih the creation'in which the beneftts of industrial will be shared byall the peopls."zr

A review of the above factors to with a number of othermeasures recommpnded forshows that for the first time a

ing rural iridustrialisation

of India was discernedpronouncement issued in

declared that: "the

tilt was given to the indus-vour of village and small.

fondly hoped that "the newthe industrial policy of thea just and equitable society

emphasis of Industrial Policy sdindustries, negleoting cottage iffsmall industries to a minor role.govarnment to change this apprornew policy was that whatever cor

trial policy of' the

PROLOGUE T9

scale industries sectot as the policy cateloridally declared that"the focal point of development for small_scale and cottageindustries will be taken away from the big cities and Statecapitals to the district headquarters."

Draft Five Year Ptal (1928-83)

Since the Janata Government had committed itself to the policythat "whatever can be produced by small and cottage industriesmust only be so produced,"le the Draft Five year plan l9?g_g3.proceeded to give concrete content to such policy declarations,Therefore, the Draft clearly stated that the village and smallindustries sector will receive a "very high priorily."r Accord-ingly, financial outlay for this soctor was increased by more ,than.176 per cent from Rs. 510 crores in the Fifth plan to Rs. 1,,41Ocrores. Compared to this ttle outlay in the large aad mediusl-scale sector registered an ingrease of mere 37 por cent fiorn. R.s..5,297 crores in the Fifth Plan to Rs, 7,252 crores?6 in accordancewith the declared policy of the Janata Government that .......

investment in the organised industrial sector with its highcapital to employment ratio . , . . must get a lower level ofpriority."Te

Industrial Pollcy Statement (July 23, 1980)

With the return to power of the Congress Party in January1980, a new Industrial Policy Statement was issued in July 1980in which no serious attempt was made to break away from thedirection given to the industrial policy by the Janata Govern-ment. In respect of village and small-scale industries is 'parti-cular, the new policy following in the footsteps of its predecas,sor,. declared that: "Government is determined to promote sucha form of industrialisation in the country as can generafe econolmio viability in .the .villages. Prorirotion of suitable industries in ,

rural areas will be accelerated. ... Handloom, handicraftg,khadi ard other village industrics will receive greater attentionto achieve a faster rate of growtb in the villages.'lso

20

Sxtt Fho Yeer FIrn (1980{5)

In *sordance qith the PolicYthe Sixth Five Vear Plan (l!steps for the Plomotion ofsector. It was categorically stated

tiotr of these indulstries will "contnent in the national devel

things; "imProvement in theparticul arlY of the artisans,"s'most imPortant objectives of the

note is the fact that not onlY

r€versr the shift given to rural

the Janata Govornment, but itby allocating adother Rs' 3?0

previous gov€rn ent had Pro(19?8-83). In thls manner, the

mont of this vitall s€ctor rvas I

owr the Draft Sif,th Five Yearper €ent ov€r therFifth Plan. i

An overiew of thepolicy of the Government ofnever before, mo|t favourablevillage and sma'.ll-scale indusshows the ever-lncreasingano{her for the Pfornotion ofs€etor.

cate the €arnestpess of the Centhis vital s€ctor df the Indian ect

Sixth Plan the fidancial outlay fitries registered pn unEven in ternrs of constant moneyluation of the Rupee since 1950),

1548 per cent.

indicated in ihe ipirial policyment of India in 1948 and 1956,

First Five Year Plan never chancontinuity in pattern throughout

RURAL INDUSTRIAU$ATION

by the government,

recommended a series ofand small-scale industries

thb document that Promo-ue to be an important ele-

strategy."sr Among otherof production and earnings,

declared to be one of theplan. What is significant to

the Sixth Plan attempt toialisation programme by

strengthened the acc6tres over and above what thein the Draft Five Year Plan

al outlay for the develof-by more that 26 per cent

and a jump of nearly 250

process of the industrialthus shows that today, as

nditions for the promotion ofhave been created. Table I

outlays from one plan toge and small-scale industries

Tbo flgures irX Table I speak fi themselves and clearly indi-Government in promoting

my. From the First to thevillage and small-scale indus-

increase of 6492 per cent.allowing for 80 per cent deva-the increase is an impressive

.Indaed, thc fasic philosoph of rural industrialisation as

of the Govern-the direction given by theand one can see a distincthistory of planned ildus-

2t-

iFs

e:i

.s

,8i.=

,{

*f;.iF{

i-

\c)F

t $R-

lisssis s$t*$tSs

::

-9 r:-te

s$ts^.r-ts:&::sG;i

sE

.g

s

iss

{;Fg

t

sI.:qs.=

.T

Bqp

!

E?

PftOA,OGUE

I

t

!r

5F(6v

a

iE.{,

I

!

e

€(Da0

{!

F

RURAL INDUSTRIALISATION

From one Plan to anotherwent on increasing which

coming into power of theeven the return of Congress

further momentum to the

on rural industrialisation inIndia has been as much on of economic reason as forsocial consideration ultimately at vindicating the solemnpl€dge contained in the to the Constitution of Indiathat:

"The State shall strive to prOr

by securing and $rotecting as'efiin which justice, Pocial, economidthe institutions of national life."

te the welfare of the peopley as it may social order

political, shall inform allAnd that the State shall, in

particular, direct its Policy securing: "that the owner-ship and control of the material , of the community areso distributed as best to the common good; and thatthe operation of the economicconcentration of wealth andcommon detriment."sa

svstem does not result in theof production to the

NOTES AND

l. OECD, The Industrialp. r73.

cy of Japan, Paris, 1972.

2. Ibid., p.174.3. Ibid., p. 15;16.4. Ibid.,p.4q,41, 110.

5. Governme t of India: Mifor Industfies, Section-Il,1948, pp. 3-8.Sigurdson, Jon. "The of Small-Scale and RuralIndustry and its If with Agriculture and Large-Scale Industry in China." Economic Research Insti-tute at the Stockhblm Schi of Economics, Stockholm,Inly, 1974 (Mimeo), p. l.Sigurdson, Jon. "Rural Planning", in Michel7.

Oksenberg (ed.), China

stry of Industry-GuidelinesIndustrial Policy Resolution,

Development Experience,

9.

10.

lt.t2.13.

14.

1,5.

16.17.18.

I'RoLoGUE 23

Proceedings of the Academy of political Science, NewYork, Vol. 31, No. 1, March l9?3, pp. 63-?9.

'8. The American Rural Small-Scale Industry Delegation.'lRural Small-Scale Industry in the people's Republic.ofChina", London: University of California press, l9?2,pp. 5-6.

Ibid., p.8.Ibid., pp. 56-57.Ibid., p. 194.Ibid., pp.238-39.Ibid.,p. L94Planning Commission, First Five year plan, p. 325.Supra, n. 17, p, 8.Ibid., p. 8.

Ibid., p.8.While in India the term "rural industry', is applied accor-ding as the size of the unit, its geographic location, theuse of power, and level of technology etc., (See Supra,n.23, p. 325. l-2),.in China, none of these considerationsare. taken into accbunt while defining a rural industrialunit as it is defined according to how it fits into theChinese Administrative system-county, commune, brigadeetc., (See Supra, n. 17, p. 63).

19. Supra,n.23,p. 17.20. Supra, n. 14, Sec II-1.2.21. Ibid., Sx II-l-2.4.22. Ibid., Sec II-3.8.23. Ibid., SecII-3.8.24. Ibid., Sec II-3.8.25. Supra,n. 23,p. 44, 47.26. Ibid., p. 44,46.27 . Ibid., p. 28.1.

28. Ibid., p. 315.1.

29. Ibid., p. 315.1.30. Ibid., p. 3t5.3.31. Ibid., p. 316.7.32. Ibid., p. 316.4.33. Ibid., p.317-8.10.34. Ibid., p. 321.20.35. Ibid., p. 325.2.

24

K.37.

38,39.

40.4t.42.43.44.45.46.47.

48.49.50.51.4t53.54.55.56.57.58.

59.

rbid., p. 326.s.

.Ibid., Sec II-7.5, 8.10.Ibid., Sec II-9.14.Planning Commission, Seco

Ibid", p.2/.3.Planning Commission,Third Five Year Plan, p. 6Supra, n. 34, p. 432.6.

Ibid., p. 412.7.

rbid., p. 429.t.Ibiil., p. 25,8.

Ibid., p. 429.r.Planning Qommission,Ibid., p. 49,4.

Ibid., p.44.1.Ibid., pp. 50.5, 63.19 andIbid., p. 415,22.

Ibid., p. 67.27.

Planning Commission,13.30.

60. Ibid., p. 287-r3.r2.61. Ibid., p. 303-14.15.62. Ibid., p. 303-14.14.63. Ibid., p.289-13.16 and Su64, Supra, n. 14, Industrial

Sec II, 13.7.65. Ibid., t4.9"66. .IbrZ, Statement on67. Ibid., Sec II, il.10.68. Ibid., Sec I, 1.5.69. Ibid.,SecII, 11.8.70. Ibid., Sec II, t2.tl.71. Ibid.,SecIl, 12.15.

RURAL INDUSTR,IALBAIX}II

1956. Sec II.

Five Year Plan, p.24,6

Five Year Flan, p. 82.29, aild.27.

Five Year Plan, p. 5414.

.20.

Five Year Plan,p.29t-

n. 63, p. 67.27.vernment Decisions,

Policy-lfil, Sec II, 10.5.

PROLOGUB

72. Ibid..,SeeII, 15.31.73. Ibid..,Sec II, 11.9.

74. Ibid.,Sec II, 17.38.7 5. Ibid., Sec I,2.7 .

76. Ibid.,Secl, 1.5.

77. Planning Commission, Draft Five23-1.146.

Year Plan (1978-33)

25

78. Ibid., 17-Lll4.79. Ibid., p.22-1.143.80. Supra, n. 14; Industrial Policy Statement*July 23, 1980.

Sec II, P. '14.17.81, Planning Commission, Sixth Five Year Plan (1980-85),

o. 188-12.7.Ibid.,p. 188'12.7 (i).Data Computed from First Five Year PlaE (1951-56)"p.82-29: Third Five Year Plan (1961-66t p. 67.27; FouthFive Year Plan (1969-74), p. 289-l3.l6f; Draft Five Yean

. Plan.(1978-83), p. l?;l.ll4i and Sixth Five Year Flan(1980.85), p. 57.

84. Proamble, to the Constitution of India.

82.

83,

Introd,uetion

In recent years 'pction-research"an appropriate social science input

criteria of an action-researchdefinition too widet. However,

CneprsR 2

tive response to chbnge as it unfc I Stated simply, it is the

introduction of planned chaageresults by participant

come to be recognised as

its flexible and sensi-

the observation of itsAction-research is thus a

to evaluate the

scientific evidence of their

study of.the effects of change as itr

phenomenon, it is an att€mpt torens. .A relatively receotsocial" sciences closer to

the precipice of advocacy for deciei making and action.

It is difrcult rto offer a tion which specifies all the

definition too widet. However, theadopted for the punpose of the Pret

without making theon of action-research

t project may be described

as a process whereby, in a given area. research is under-taken to specify the dimensions of problem in its particularcontext; on the basis of this a possible solution is

formulated, and is translated intothe problem; resdarch is theneffectiveness of the action taken.becomes a convenient tool for

on with a view to solving

in this sense,

challenging application ofsocial science as a solution to problems "by combining

of social science boththe knowledge and researchto discover solutions and to Proefficacy".

Under the action-research Pro on rural industrialisation,emphasis ha5 been on making the of applied research

dealing directly or in-by feeding back research

a view t<i ; the process of change

INTRODUCTION N

thus generated then becamp. a further topic for the researchteam to consider.

Apart from benefiting the grassroot level institutionsdealing with rural industrialisation activities, the use ofre-search to generate and then study action. became a furtherrailying point for the project team to put (o praetical test semeof its hypotheses about the working of various ground levelinstitutions engaged in the ryral industrialisation process.

More importantly, the nature of the subjects with which theproject was concerned, .mealt that the solutions which it wasrequired to ofer had to have general relevance. For, althoughthe project operated within specific selected localities-Ramgarh, Kishangarh and Mandawar blocks of the industriallybackward district of Alwar in Rajasthan, the problqms withwhich it was concerned-broadly, problems of rural industriali-sation-depended not only on location, specific conditionsnsuch as poorly developed infrastructure and extreniely low levelsof education and technical skills, but on the social structurewhich generates them, and upon the pattern of industries exten-sion services available to deal with them.. Neither the social structure nor social services can be chang-ed permanently by efforts in the local context within which anaction-research project must operate. Consequently the presentstudy also becomes a demonstration of "what is possible" and"what is not possiblg" by setting up some test situations whichshowed the value of a new nre&sure implemented by action andvalidated by research.

The Action-Research Project on Rural Industrialisation inAlwar, thus presents concrete evidence which can be fairlvgeneralised as the basis for national policy on rural industria-lisation. The study was financed by the State Bank of Indiaunder its Research and Development Fund. The State Bankactively participated in operationalising the .action' part of thestudy.

Obiectives of the Study

The 'action.research' project was launched with the followingbroad objectives:

a) Study the circunlstaoces under which the process of rural

\l

RURAL TNDUSTRIALISA?ION

iation €an be best accelerpted;lore the extent to which {he services of the fnanciatrs of the area can be sucb$ssfully tapped for furtheringndustriaiisation efrorts; i

rn the organisational and institutional mechanics

lh rural industrialisation can be speedily achieved;

2& RURAL

io&rstrialisati oII €an be bestb) Explore the extent to which {he services of the tinancial

institutions of the area can be sucb{ssfully tapped for furtheringthe rural industrialisation efforts;' c) Loarn the organisational a[d institutional mechanics

under which rural industrialisation can be speedily achieved;and

refined further through of implementation andsucceeding, (i.e.,'action'evaluation of effectiveness during

and 'follow-up') phases of the . The exploratory $tage was

of rural industria-

ves of the project were todevelop feasiblewhich could be

primarily with thethat is,' information for

and planning. It comprisedactivities related to

All relevant informationfinancial institutions enga-

industrial and relatedindustrial potential and

) which were later on

of the action-the progradrrne in-

d) Develop policy options andlisation.

The theoreticall and policyhelp government and flnancialprogrbmme models of ruralreplicable socially and eco

Naturc of Stuily

The study was conducted in three i

A. ExPLoRAroRx PHASE

Exploratory rosearch was ud(iotent of programme developmerimproving progremme formulatio[all prirnary and sePondary datadeveloping new programmeand data about the gov€rnmentged in rural industrialisation,development efforts, and also of

thus instrumental in the basicresearch project as it helped irt

for the Sixth Plan period,addition a series of discus-national, State and district

level agencies for evolving and ving programme ideas.The same programme ideas in(in terms of investment and

became programme models

res€&rcn proJect as l[ nelpputs through innovation and at the grassroots level.

INTRODUCITON wB. AcrroN Psese

The 'action' phase of the project, like most developmentprogrammes consisted of interventions into community lifrduring which period services were delivered to the selected ruralcommunity through a planned institutional proceEs or deliverysystem conoprising:

a) An implementation process-of installation and main-tenance in the community;

b) A socio-cultural process-of community reaction audadjustment; and

c) An evaluation process-for simultaneous interventiontechnique improvement.

During the course of the project therefore, the study. teamactively participated in the execution of District Industries(Action) Plan for a period of more than two years. The tgamcontiauously acted as a liaison-interface between the peopleand the govenlment, between podsible benefciaries and finaacialinstitutions, and also between government agencies and finan-cial institutions, and monitored the entire process of interactionbetween the various actors involved in the execution of thedistrict industries plan, beginning with arousing the conscienti-ousnsss of the rural popu,lace till the actual disbursement ofthe delivery outputs.

C, For"low-upThe'follow-up' phase in the form ofan informal evaluatioa

of general programming constituted one of the most importantlinks of the 'action-research' project. Such last stage programmeevaluation was considered particularly necessary for jqdgingoverall effectiveness of the intervention, and also from the pointcf view of assessing the social and economic feasibility of itsreplication for the pufpose rof future programme planning. {nthis manner, overall 'stock-taking' appraisal conducted duringthis phas€ greatly facilitated the inferring of eause and effectrelationships between combinations of programme inputs/out-puts and the recipients. In addition to this, the last stagefollow-up survey also enabled comparison ofthe baseline (beforemeasurement with the later (after) measurement, repeated undercomparable conditions for the same set of people for the purposeof evaluating changes dlre to programming.

30

Strategy of the Acliotr-Resertch

RURAL TNDUSTRIALISATION

economic and effec'tum of investment, and

th€ literate and semi-literate

of possible recipients bothand technical skills develop'

. with appropriate

Aetion-research; ds stated, is ut

of developing socidl interventionimperative for action-oriented

primarily ,in suPPort

vefy systems. Hence, it isprojects to provide a

reliable, non-arbitrarY and tative basis for Planning

prediction of likelY effects' This, turn, requires a knowledge

nurnber, sPecifications, andof relationshiPs between theand the time, number'

delivery outputs in so far as

of programmes, locations

dent upon them.;

Programming and research for the present action-on therefore, involvedresearch project dn rural

costs, such programmes oflikely to produce the mostes by programmes and bY

on in implementation there-ve collaboration with govern-

tions ofthe area; and thento programme interven-,

tions. In view Of all these obj ves. the action and research

process for the rural industriali project in Alwar district,

took broadly the following' course:

a) Identificatlon and in consultation with the

Government of kldia, State t of Rajasthan, and the-sotting which had indus-

pot€ntial;itional and non{raditional

village, cottage arld tiny industries ving locational promise;

c) Ideritificatlon of various onal training courses for

decisions so as to achieve the most

tive location of setvices, types and

costs of units of !'rogramme in1

specifications and costs of unitsthe desired serviceloutcomes bY .

and reciPients are Pre-eminentlY

sclecting by typeb, quadtiti€s'rural industrialisdtion wbich

favourable outco le for rbencl

locations; eliciting local partici

of; executing the {ame throughment, banking aN financial it

studying the causles and effects

promoting industrial skillsyouth of the iselected rural

d) Identificatlion and selecti

gov€rnfient,agoncies at

INTRoDUCTIoN 3l

national, State and district levels to .lend .necessary assistanccfor operationarising the programme, both in respect of s€tting

''p ruralindustrial units, as.well as i"*g"ii.i"e,litlit" tr"tnical training courses for the identified *.-"f yorii, -'". f). Active participation ofthe projeci ;il;;. government,banking and,rother developmental agencies of the areaintheimplementation of the programme; andg) Anrin-depth inquiiy into the causes and effects related toprogramme int€rvantion with a view to evaluatlng the overallperformance ofthe' action.reseafch project, and iie sociat anaeconomic feasibility bf its replication.

Research Methodology

32RURAL INDUSTRIALISATON

in rdfirring some of its con'

both in resPect of covet'

the causes and effects

with a view to evaluatingThe mode of enquirY

ipant observation of theintsviews with them.

discussioos wcre also beld

goverantrent agencies er$assessing their reactions vis-

of ladia, the Sbte Gov€m-Bank of lldia, tho action-

thg .nortlr-northeastern region'

as stated, involved the

n and then studY iti effects.

the studY therefore, €ompri'

sed the active palticipation of its ' contingent in the imPle-

mentation of the rDistrict Action Plan' Duting thisyears, it closelY interacted

of rtrral industrialisa-

tion -the bureaucracY, the and financial institutioN'

and the PeoPle-4ccomPlishing following:with approPriote .gov€rn{neflt

thet it greatlY helPtd the Projecr

ccpts oeces6itating a series of c

age and coot€ot of Programma i

2) The'actiod' stage oftheuse of research fo generate at

The second add mlost vital Phase

'after' measure :was used fPt

relating to Programme lmPl

the oveiall Perfofmance of the P

consistcd mainlY of keen and

beneficiaries, suPPlemented bY i

In addition, a selies of {neeti[gpwith the represFntatives of

fmancial institutions vith a vtew

a-vis Project imPlementation'

phase which stretched well over I

with all the actors.involvod in th€

a) Determined in consultat

and banking agedcies such new

selected rural communtty;b) Guided and mobilised

tlisbursement or i qcsrrEu 4

artisans and rural Youth'3) The thir4, that i$, the ' phase designed as the

of rural ir,dustriali-

gtion likely to Produce the favourable outcomes for th!

entreprencurs and

groups of rural Youth desirous o learning new technical skills;

andbetween the various actorsc) Establishsd ProPer li

resulting ia theinvoived in the Plocess of rural

dsbursement of i desired to the identified grouPs of

of tls rqral sQtting w.s8 $u[I)e'

INTRODUCTION

sive and based entirely on non-random criteria and practicalconstraints. Some of the more important ones among thembeing: (a) latent potential of the district for rural industrialisa-tion with its reasonable levels of agricultural production andrelatively better developed infrastructure facilities; (b) constrpiptsof human and financial resources at the disposal of the project;and (c) proximity of,. tlre region to the project hea@uarters atNew Delhi so as to reduie logistical problems. In addition,'oneofthe leading considerations in the choice of Alwar district as

the desired rural setting has been its being a "declared indus-trially backward district" which entitles it to a special central

subsidy for industrialisation projects.

Though' initially it 'was planned to cover all the five blocksfplling in the north-nsrtheastern i€gion of Alwar district thescope of programme coverage, howwer, had to !e restficted toonly three blocks, namely, Ramgarh, Kishangarh and Mandawarin view of limited resources both, human and financial as wcllas limited time at our disposal. A total of 108 villages? spread

over these three blocks were finally covered under the project.

NOTES ANb REFERENCES

1. Some of the more irnportant works which have givon e

detailpd treatnent to the concept of 'action-research'

methodblogy are: Albert Cherns, Using the Social Sciences

(London: Routledge and Kegan Paul, 1979)' and MartinBulmer, ed., Soeial Policy.Research (London: The Macn

millan Press Ltd., 1978). For actitin researbh. methodology

and techniques in the particular context of the developing

countries refer: Gerald Hursh Cesar and Prodipto Roy,

eds,, Third World Surveys: Survey Research in the

Developing Countries (Delhi: The Macmillan Company of

t

I

_l

Cnesrsn 3

The Settlng and t e Sample

One of the im$ortant, thoughderations in thQ selection of r

launching the Project, w&s' as n

comprising Ranlgarh,Tijara blocks.

necessarily primary consi-suitable rural community for

oned, earlier, geographical

proximity of the setting to study team's headquarters at

New Delhi. Alwar district met of tbe criteria and elicited

the full support of the State of Rajasthan and the

State Bank of India. In viow of the limited resources, both

human and finaIcial, the scoPe project coverage was further

restricted to thp ern region of Alwar district, Mandawar, Kotkasim and

Alwar District SSil Its Setting:

The district of Nwar, formerly part of the erstwhile PrincelYState of Alwar came into in its preseot form on

of its strategic location and

capital at Delhi, its peoPle

movement with its contin-of responsible government

is movement were heard forthe first time in the Year l93l rr en the people of Alwar raised

Biswedari rights in .Iagir and'assessment rates after whichthe people of Alwar.'2 Not

boleheartedly in the nationalion and Quit-India but also

Historical Context

November I, 19$6.1 On accoungeographic proxlmitY to the natiawere exposed eafly to the naJio$tgent demands fQr the establishn'and free press. The rumblings of

their voice for , the restorationMuafi villages ar[d for reductionevent there was [o looking backonly did the PeoPle Particillevel movementg like Non-C

t.organrsed several sucn move on their own. For instance,

TTIS SETTING AND THE SAMPLN 35

movements like "Anti-Repression Day" on February g, t 946,and "Irresponsible Ministers Quit Chairs" on August l0 of thesame year and indeed a never-ending chain of strikes and sdtya-grahas throughout the State3 that ultimately paved the way forthe establishment of responsible government in Alwar. So muchro that the national govemment was forced to advise the rulerof Alwar to merge witb the princely States of Bharatpur, Dhaul-pur and Karauli and form a union to be known as the UnitedStates of Matsya. The city of Alwar was made th€ capital of thenew union and Raj Rana Udai Bhan Singh of Dhaulpur, its firstRaj Pramukh.q

Besides an impressive record of political participation, thedistrict has also an illustrious history of public life and thegrowth and expansion of social service and voluntary orgauisa-tions. For example, the Arya Samaj, which opened its branclrat Alwar as early as 1900, has left an indelible imprint on thesocial and cultura-l life of its people. Similarly, the establishmentof the first ever voluntary youth organisation of Alwar-theArya l/eer Dal in the year 1943, and of four Kasturba GandhiGram Seva Kend.ras by the Kasturba Gandhi Memorial Trust,have played a very important role in the socio-economic life ofAlwar.

Educational facilities on modern lines also developed earlyin Alwar with the establishment of Alwar High School in 1842aod the Thakur School in 1871. But these schools were meantonly for the wards of royal blood and the scions of Thakurs.With a view to spread education among the common people atleast 16 teis schools ard 44 halkabandi schools were estab-

lished in the 1870's by the rulers of Alwar. With the establish-

ment of the United Presbyterian Mission in Alwar in 1891, atleast nine new schools were opened of which one had the dis:tinction of being the first ever girls school of the district.

The provision of medical and public health services also

has a long history, with modern medical facilities being intro-duced in Alwar nearly ninety years before independence. Forinstance, an allopathic dispensary was set up in the State ofAtwar as early as 18!9. It was later upgraded and convertedinto a general bospital. The first female dispensary was also

opered i.n 1889. By the year 1892 the State had two full-fledged

hospjtals ip Alwef fqr the imperial troops and five dispensaries,

located one each at Rajgarh,

ard Behror. Sut the rural r

RI'RAL . INDUSTf, IATISATION

Thanagzi, Lachhamangarhwere poorly equippcd

were developed more in the

Alwar had a fairlY high levelg the pre-independence Periodf political consciousness and a

relatively bettdr developed sd al infrastructure. The socio-

place during that era createdpolitical develoPments that tta clirlrate whicli had a crucialreconstruction ivork.

on the post-indePendence

the northeast of Rajasthannortheast by Gurgaon district

ct of Rajasthan, on the north'

west by Mahendragarh district Haryana, on the Southwest

districts of Rajasthan. Theby Jaipur and Sawai Mspread from soxrth to north is 137 km and that from east

to west 110 km. The total area of the district is7,65,106hectarcs. A , it is divided into four sub-

, Rajgarh and Tijara, lO tehsils'

t6

divisions, namelY, Alwar, Behro

seven sub,teftbils, 14 PanchaThe Aravali hill ranges

district and run Parallel liom

east to west end northmetres from sea level. The

to The average height is 365

of the district is drY, charactet-

ised by a short monsoon. The annual rainfall is 61.16

panchayats funrbti oning in l92lare a conspicuous feature of the

cm. The temPerature varles

The district is verY wellrail with other irarts of the

length of the railwaY line

km. Total road length in tbe

km of national highwaY. Te

are available [n PracticallYdistrict, Water and Powerdishict gets hYPel Power fromand also from Rajasthan Powa

Alwar is an impoltent agr

barley, gram. jowar, baira' 5

iome of the mriin croirs of the

mineral wealthf China claY'' t

samitis znd 439 village

5"C to 45'C.by road and rnetre gauge

and the coultrY. The totaling through the district is 110ot

tis 1,384 km including 31

and telephone facilitiesthe important Places in the

also available in PlentY. Theand Bhakhra systems

Project, Kota.based district. Whcst,

seeds and mustard etc. aFThe district is also-rich in

quartz;,calcite, oqppcrmineral wealthf China claY''

orc, limestone, marble, glass $and clay arc" impo{tant xiin€-

!

'ro tlgJn

\_-)I

/'l(

t

(/,1.

)

ter.\rptrr.r o

Ct

t^L*

i

/.J I I S MADHOPURDISTT

MAP OFALWAR DISTT.

INI

'-:::l-:l-::r l Y::----STATE BOUNDARY-.-DISTRICT BOUNDARY

-.PANCHAYAT SAMITI

BOLX\IOARY

@I DISTRICT HEADQUARTERo TEI'{SIL

-|i/ATIOML HTOHWAY

_IMPORTANT ROADS

-;R411_vv4v r'*atO CITY

^ PANCHAYAT SAMITI. HEADOUAR1ER

! ^-RIVERS

of scheduled cEste &nd

thereon.In addition a number of

tion, the Khadi dndVillegefree consultancY setvices, r

schemes, exemption from octroisubsidies, etc, also exist.

necessarily evenly sPread in all

The North-northeastern Region

Preliminary investigatlons inNorth-northeastern region, relal

with infrastructr[re facilities forparison with alll other regions o

view of the pre$ent action-resea

decided to ground the study in

NURAL INDUSf RIALISATION

The livestock population ofit is a surplus district in the

backward district where 15

industrial units on fiied5 lakhs per unit. But in case

tribe entrepreneurs the

units is 25 per cent of whichGovernment. Interest free

of fixed assets \ryere granted

Sales Tax departmentswhich were established

could be utilisedloan and interest

and

The loanyment of

br a certain period, and power

From this account it is clear Alwar district of Rajas-

than, both becarlse of its location as well as resource

endowment, is fast develoPittggllu\rwrut,u|,t rt r4i

centle of the State.industrialisation are

facilities conducive for asuch as, loans under Central

finance from the Rajasthenict Industries Centre, the

Development Corpora.ies Board, etc., subsidised and

development programme

into an important industrialfacilities necessary for rapidwell developed, though notblocks of the district.

district revealed that itsspeaking, is better endowedindustrialisation in com-

the district. From the point ofprogramme therefore, it wasRamgarh, Kishangarh and

faster pace of industrialisationGovernment schemes, concession

. State Governmdnt through ttre I

Rajasthan State Industrial and I

lvlandawar blocks falling in this

tIIB SETTING AND TTIE SAMPLE 39

Geographic homogeneity, similar physiographic characteri-

stics and a relatively well-spread network of banking and finan'

cial institutions were a few of the leading considerations in

selecting these blocks' As regards restricting programme coverage

to only three blocks, the following were the main teasons

influenciog our decision in favour of such a strategy:

a) The desirability to make a concerted effort instead ofspreading the limited resources at our disposal over a broader

area; anob) The felt necessity to gain better understanding and

deeper insight into the intricacies of programme implementation

at the grassroots level, so that ic the light of experience gained,

the research and'action' strategies could be suitably modified,

if necessary, and even extended to other parts of the district, ifpossible.

. In the following pages a detailed account of the physical

and social environment, resource-base, infrastructure develop'

ment and industrial possibilities in the north-northeastern region

of Alwar district is being given.

Physical Environment

LocATIoNThe north-northeastern region of Alwar district is bouaded

by Gurgaon district of Haryana on the north and northeastern

sides and by other panchayat samitis of Alwar on the westertr,

southwestern and southern sides' Spread over a total of 2'863

sq km this region constitutes mole than 34 per cent of the

total land area of Alwar district.The north-northeastern region, like tbe district at large,

is traversed by the Aravali range of hills runniag east to west

and north to west. River Sabi, a non-perennial river runs along

the extreme northern borders of Mandawar and Kotkasimblocks and normally flood$ parts of the latter during the rainyseason. On the southem gide of the region, river Ruparel, also

a seasonal river, runs along the extreme southern boundary ofRamgarh block'

The region is also char&cterised by a diy climate and a shortmonsoon. The average rainfall of the region is 61.16 cm andthe temperature varies from 45o C maximum to 5' C minimum,

4.6 RUI,AL INbU$TRIALTSATTON

'li-,-

vnp or r.roRtH/|{ORTH EASTERN REGIC}{OF ALWAR DISTflICT

-.-DrsTRlCt BOUND4RY

-/\PANCHAYAT SAMITI. .BOUNDARY

o TEHSlL HE ADoI+RTER

-NAT{ONAL HIGHrTAY

_IMPORIANT RO4OS

;';h;>"*;E

A PANCHAYATSAMITIH€ADQUARTERS

^/R]VERSE POST OFFCEH H|GH/HIGHER sEcoNDARY

SCHOC'L

M MTDDLS SCHOOL -/@ HOSPITAL+ DISPENSARYO POST&TELEGRAPITT€L€F}TOT{'

o FOLTCE STAITONO MAN DI

6 MARKE]clicrRcu,r nousE'

A

eI

...,Y

.tr,.gts='

$J""'q9'

T.ft

1

*RA|IWAY L INES

W ctr\

TdE SSIIING AND TTIts SAUPLB 1l

In a year ofgood monsoon like 1976, the actual rainfall record_:ed at each of the three panchayat samitis included in the surveywas as follows:

Trble l. Strbrnemt showfuU rainfslt reconlert In lg76 In Rangorh,Kishaggarh and lllrnrtawar blocks

Panchai'atsamiti

Normalrainfall

Actualrainfall

{*) above (-) belowNormal rainfall

RamgarhKishangarhMandawar

55.2555.68

79.70 (+)%.00 (+)83.80 (+)

n.4540,3220.91

Physiographically, the area is cheracterised by alluvialplains. The soil of the region is sandy and sandy loam. Insome parts the soil is sandy but in other parts of the regioa,the soils are sandy loam anil clay loam..

The water level is high and except for a few pockets in .ther€gron, is generally of good quality and available in abundance,At some places the water level. is

'as trilh as ten feet. Theav€rage water level for the region as a whole, however, is about40 feet.

- Wells are the only source of iriigation in the region. Thoughthere ar€ three important minor irrigation tanks in the districtnone of them falls in the region. Similarly, as stated earlierthough the two rivers Sabi and Ruparel'pass iirougfr tleregion, no irrigation is possible from either of them. As ar€sult, agriculture in this region is solely dependent on irrigationfrom wells.

Together the three blocks cover an area of 1,g43 sq kmwhich constitutes neatly 22 per cent of the total geographicalarea of the district. The headquarters of the thrJe panchayatsamitis included in tbe study, namely, Ramgarh, fishangarhand Mandawar, are linked by pucca roads and iheir distance,

!9m the District headquarters is 22,35 and l5 km. respectively.There are 87 village panchayats in these blocks, of which 29are in Ramgarh,2T in Kishaqgarh and 3l in Mandawar. Of thatotal

.429- villages comprising the region, 405, that is, g4.4 percent had been electrified by March, 19g2.

42

Socld Environmeni

DBMocRAPHY eNu PoPur-e.noN

At the l97l census, the

AlwarNorth-northeastern lregionof Alwar districtRamgprhKishangarhMandawar

' The region ls Predoncentre, Khairthall in the Kpopulation in this town'

RURAI, INDUSTRIALTSATION

had a PoPulation of 2.86

of the total Population

8,382

2,863743526574

cent of the total goographical area

per c€nt of the district's PoPulatof population in this region is alm

lakh which constituted 20.5 Per'of the district. Thus, while the is spread over 2l Per

of the district, it has 20.5

on. With the result, densitY

the same as the average

density for the district as a whole that is 166 Per sq km)'

The following statement separately the distribution

of population for the R'ajasthan Ahvar district, north-

northeastern region of the and for t}lLe three panchaYat

samitisi

Table 2' -*ise ilistribution population' arel cnil ilensitY

StateldistrlctJ Total Area DensttYsq km per sq kmpanchayat samili

166

r58na159.186

rural with only one urbanblock. With a mere 12,987

population for the region

works out to a PaltrY 4.5 Per which is much lower than

the corresPonding figures for the 9.1 per cent and the

level of urban growth is

development of industrY and

considerablY in comParison

Rajasthan gbnerallY.

workers constituted 27.98

district. Though corresPond-

nat samitis situated in theseparately available it is

ing figures for the three Pan

florth-northeastern region are

known that they stand out in comparison with the dis'

tHE SEfTING ANb TfiE SAMPLE 43

trict (27.98) as well as the State (31.24) averages. The per_centage.of workers is higher in the rural, areas than in theulban centres due to somewhat larger participation of femalesin the former.

As iegards the distribution of population occupationally,once again the exact data are not available separately for tleregion, but it is also known to follow the district pattern,namely, 76 to 80 per cent in agriculture, g to i0 per cent intransport, storage and communication, 3 to 4 per cent inhousehold industry, approximately 2 in other, induitrier, 3.to 4per cent in trade and commerce, and the remaining in livestock,fishing, forestry, construction, and mining andrqualrryrng, etc.

The overwhelming dependence ofthe people of this regionon agriculture and allied activities bas been clearly highlightedby the above figures. Although Ramgarh panchayat samiti isfairly rich in minerals, the percentage of workers engagedin mining and quarrying is very low which clearly underscoresthe fact that the development of mineral resources of the regionhas yet to make a meaningful start. The percentage of workersempoyed in construction is also very low, which is once againan indication of a very low level of developmental activitiesin the region.

At.the 1971 census, 19:73 per cent of the population wasliterate. Among the males 30.28 per cent were literate andamong females only 7.83 per cent were literate, As might beexpected, the literacy rate was rnuch higher in.the small urbansector.(47.52 per cent) than in rural areas (16.94 per cent). Ofthe three. te&si/^r of the north-northeastern region, literacy dataare being given for the two reisrls-Kishangarh and Mandawar_included in the survey, in Table 3.

In 1971, scheduled castes constitut ed 17.3,per cent of thetotal population of the district and 5.91 per .cent of the totalpopulation of scheduled castes in the State, The scheduled tribepopulation likewise, was nearly 8 per cent of the total popula_tion of Alwar and 3.55 per cent of the total population of sche_duled tribes in the State. Together, the two of them thus repre_sent more than 25 per cent of the total population of the dis-trict. In the area under study also, the,scheduled caste as wellas scheduled tribe populations are we spread and can be foundin all the panchayat samitis. In Mandawar tehsil, howeve4 s,

RUR,^L INDIISIRIALiSATI0N

Tablc 3, PdrtcntaSo- litcr$cy ih anil utbrtr'trcas

Percentage literacY

Female TotalgoPulatton

Mandawar

KishsngarbTRur4lUrbdnTotal

tBlock-wise data not {vailable.'

greater concentratlon ofcomparison with the other two teregion.

The Resource Base

LAND

area- per capita wofks out to a littlOf the total 1,84,300 hectar(

?4 per cent is the det iown ares, Ifor cultivation, approximately I pe

waste land. out ofl the total net

is net area under irrigation.

tribes is to be found iaof the north-northeastern

area of the region, nearlY

per cent is not availablecent of the land is fotest'

area nearly 22 Per centgross irrigated ' area is

lt 7<

351529.{l50.9031,53

6.34

6.346.20

28.307.89

2t.76

21.1618.68

40.43

20.37

The region covdts an &rea of 1, 3 sq krn which constitutes

2l per cent of the iotal land area Alwar , district. The landover 0.63 hectare.

about 1.8 per cent ls under pastuf€s, nearly 2 Parcomprises other uncult!cent.is currentlY fallow and the

vated area, It is clear that than'?5 Per cent of the

total area is under cultivation and 2 per cent is used as

pastures. The remaining 23 Per is not available for culti-

vation out of which 5 Per cent comprises other cultivable

approximatelY 17 fer cent of the 1

the percentage of gross irrigated a

rather low there is not much i

cropped area. Althougbto gross croPPed area is

for additional irriga-

tional resources as the land of region is verY fertile. As

stet€d earlier, weflls are the source of irrigation. In thiegh, tub€wells (bored wells)tegion the wat€r level being quite

are more cornmon lin comParison open wells as their cost

smell holdings can haveof constructiotr is.\terY low 46d

TIIB $ETNNG AND TTIB SAMPLB S

an independent source of irrigation in the shape of a basedwell.

The main crops ofthe region are barley, gowgr, jowar andfodder crops. Vegetables, especially onions and tomatoes, arcalso extensively grown in the region, Nearly 1,200 hectares inthe region are under onion cultivation which is the main vegetau.

ble crop of this area and a source of good income to the cult!vators. In. tems of percentage, 30 per cent of the gross cropped area is under bajra; 24 per cent under gram; 15 per centunder wheat; and 1l per cent uader mustard seed in a normalyear.

The region .is an agricultural surplus area and a majorportion of the local produce is sent out to other parts of thedistrict and neighbouring States. The following statementshows separately for. each of the three panchayat ssmitis,annual production of .major erops and the surplus exported outof.the region:

Table 4. Bloc}-wise prcduction fuures for main crotrls(In towres)

Naaa of crop Ramgarh Kishangarh Mandawar

Produc- Surplur Produc- Surplustion ,ion

Produc- Surphstion

Ric.eMaizePulsesWheatBad,syGram

. TilhanGroundnutsMustard andTarameeraSugarcane

Go*ar seeds

200 100

32 20400 300

l1,0oo 5,6001,600 6405,400 4,m0

350 t75103

3,500 t,7so600 180

1,050 s25

;-116 80

8,307 3,5005,988 2,000

15,189 10,225

t35', -.

3,778 2,000

t,u5L2AO6,0009,000

r,000

300

-.945600

2,O{ro5,000

500

100

FoREsr REsouRcEsAs mentioned earlier, a mele one per cent of the total land

area of the district is under forests, As such, there is notatu:h spope for exploiting the forest resources in this region.The only worthwhile forest resource which also grows inall ths three panchayat samitis is the fibre sarkanda. The fibre

46

is of good qualit! and. is ava

RURAL INDUSTRIALISATION

e in sufficient quantities.

for the expansion of thenew units based' on this

There is, thereforF, a good sco

existing units as wqll .as for settingreed.

Wersn RnsouncnsInformation has already been ed regarding volume

and distribution of rainfall and the system in this region.Since no canal network is possible, both the rivers-Sabi as

well as Ruparel (*hich skirt the northexn border ofMandawar panchayot samiti andgarh panchayat sqmiti , respect:

irrigation resources of the regionthe provision of mdre wells and tiout of the total thrQe governmentthis region so that irrigation ts

wells. Table 5 shows the net irrigaing to resources:

southern border of Ram-

), are non-peronnial, thebe increased only. through

As stated earlier, noaein, the district falls in

dependent onarea of the tegion accord-

Table.5.-

Wells & Tatks

RamgarhKishangarh 1

Mandawar

As is clear frorn Table 5,

region is dependent on wells.

of digging wells is lelatively low.

sources of irrigatipn, irrigationalbe increased only b[ digging morewater level in thiF part of the

sources of iftigation' (Hectaras)

Others

Net iffigoted area

283 8,848'r4,o368,329

almo$t the entire irrigation of thisIn ttie absence of any altornative

tial of the region ean

Moreover, since theis quite high, the cost

source of livelihood tothis region. It helps to

marginal farmers a*dactivities, As per the

,rvBsrocK REsouRgEs

Animal husbandry is a guppleme

.large portion of the population ir'upplement the incdme of the smail

TIIB SBTfiNG AND TIIB SAMPLE 47

1972 livestock census there arc 2,95,152 heads of cattle in the' region which is.nearly 21. per cent of the total livestock popula_tion of Alwar district. Thetblook-wise distribution of livestockin the region is given in Table 6.

Table 6.. Block-wlse strtcment of livestock rtdoutlesAaimal htsbandry Ramgarh Kishangarh Mandawar

Total population 8%500

17,80023,WO5,000

30,0m

11,000

1,2,44450,62633,9986,236

31,193

93,248

29,46724,2s38,O74

26,7323,281

J)/1,054

332

CattleBuffaloSheep

GoatsCamels

HorsesDonkeysPigs

lJ

Animal husbandry has been for long, one of the most impor-tant subsidiary occupations for the people of the region. Itsimportance, io terms of providing a supplementary source oflivelihood, has'been next only'to agriculture in this region.Table 7 shows separately for each of the three blocks the quanti-ties of the important products of animal husbandry produced inthis region.

Table 7, Stotorncnt shonlng block-wise production of animathusbandry products

Products from antmal '

husbandry !Kishangarh MandawarRamgarh

Milk (ks.) 4,2008.00

58o,7

4,0008.00

584.7

70,000

4,5t09.50

.@1.5

55,000

Hides (m. tonnee)Bones (m, tonnes)Wool and tlair (m.t.)Egeis (nos.)

Considering the significance of animal husbandry to the eco-nomy of an &veragg rural household, there is every need tostrengthen and org4nise the. programme on scientific lines. Thescope for setting up animal. husbandry-based industries is alsoimmense. ..

:

48

linel

ves. Granite, gYPsum and b marble ate the imPortant

minetal resources of Ramgarh. Sufficient reserves of these

minerals have been rePorted bY Geological SurveY of India

but the percentag& of workers. in the mining and quar-

rying operations iir Ramgarh indicafes that the exPloration

is not being done Pn an adequate e. Mining operations in

MNsnAL RBSoUROBS

The region is rlot as wellof th3 Alwar distrlct. OnlY

TnlxsponrThe region epjoys both,

though they are not adequate.gauge railway lind traverses the

Infrmtructure DeveloPment and

Availability of a sound isite for the economic devqloPmenrevealed that the three blocks are

developmental iufrastructure, thouadequate. The tiansport and con

Ramgarh, therefofe, need to be stt

rea$ily pave the rtay for the settin

industrids and black marble polish

ties all play a vit4l role in develo

of the state of develoPment ofeiven.

RURAI INDUSTRIALISATTON

with minerals as the rest

block'has mineral reser-

up, which, in turn can

up of a few granite-based

units.

Policy

is an important requi-a region. Our survey

y well-endowed withit can hardly be termed

munication facilities, availa-

bility of energy, rpedical and and educational facili-ent. A detailed account

eaih of these in the region is

as well as road facilities,e Delhi-Ahmedabad metre

stern parts of Manda-

war, southeastern Parts of K im block and the extreme

western region of Kishangarh Harsoli irr the Kotkasimthe Kishangarh panchayatpanchayat samiti and Khairthal

which is also an imPortlnt mandi f the district. are t\r o of theimportant railrailway stations of is region falling along this

with the district headqudrtersare' also well linked by road

other neighbouring areas.

For'instance, Radgarh block fall on thc Delhi-JaiPur national

highway so that the agricultural well as the mineral Producefrom the regiou, Similarly,of this block fiqd an easy ou

fIIB.SBTTING AND THB SAMPLE 49

other panchayat samitis of the region are also very well inter-linked with each other and other neighbouring blocks of thedisrict. Trade and commerce is thus comparatively betterdeveloped due to this linkage. Khairthal is an important mandiof the district which is well-linked with the district headquartersat Alwar and other tehsil headquarters of the region, such asKishangarh and Mandawar.

Our survey, however, revealed that the interior villages,oot only in this region but in the entire district as such, arenot connected by good roads. This is a serious handicap forthe development of the rural areas. In the absence of goodapproach roads, not only do the farmers have to fbce greatdifrculty in bringing their produce to the assembling centres,but it also acts as an effective deterrent to the banks in makingadvances in the interior regions. Lack of adequate approachfacilities seriously jeopardise the efrcacy of financial agenciesespecially banks, in controlling their advances. Rural upliftmentofthe region, therefore, can be accelerated at a desired paceonly if the road transport, especially in the interior villagcs, issubstantially improved.

ErrcrnrcrryElectrical energy or power is another most important input

in the development of any area. In fact, it is difficult evento conceive of any meaningful programme of industrial deve-lopment in the absence of assured electric supply. The stateof power development has been found to be reasonably satis-factory in Alwar generally and the region in particular. Thedistrict is fed by a 132 KV line from the Bhakra Nangal Dam,a 220 KY line from the Badarpur Power Station, and a 2x22MW line from the Rajasthan Atomic Power Station, Kota.Therefore, there is little fear of any serious shortage ofelectrical energy in the near future in this district.

of the total 429 inhabited villages in the three blocks,405, i,e., more than 94 per cent villages had been electrifiedby March 31, 1982. Among the three panchayat samitis of theregion Kishangarh and Mandawar st4nd out with nearly 100

per cent electrification,

50

CnBotr Fnclr,ttle$There has beeF raPid

oial banks in the district since

Bank which is the Lead Bank ofa well-designed cfedit Plan foragriculture, animfl husbandrY'

Ramga(h, four in Kishangarhbas and

outside these blockd, provide banking

blocks.

attitudes adoi2ted bY the bra

The top levei mqinagements ofthemselves cogniiant of these

steps for re-orienting the mifying the Procedtrres.

RURAL INDUSTRIALISATTON

of the network of commer'912. The Punjab National

district has also PreParedoting the develoPment of

and transPort sectors'

in certain villages of these

staff of commercial banks.banks are, however,

ems and are taking suitable

In the three blo0ks under there are 32 branches ofof the Alwar State

the position of banking

Table E. Block-wke statement commercial anil co-operatife

offices in Kishangarh anil Mandawar

Parliculars Name of the block

Khhangarhbas Mandawar

Total number ofBranches ofBranches of

*Out of th" total 29 banking ofnces commercial banks, one branch inin Mandawar, though located

banksbanks

12,II2

12.11

,.

banking facilities are reason-in Mandawar and

the ambitious programme

region, expansion of bankingpace. The setting up of the

as per the new Industrial

Policy of the Government has most of the difficulties

faced by small entrepreneurs rn g credit from the banks,

but there were occasional about lomewbat rigid

ii

.i

It is clear frotn Table 8 thatably adequate if,r the region,

Kishangarhbas blocks. In viewfor rapid industrilalisation of the

facilities has takqin Place at a ftDistrict Industribs Centre at A

of their ofrcers and simPh-

THE SETTING AND THE SAMPLE

Government Policy

Government policy in the sphere of industries is governed bythe Industrial Policy Statement which was laid before Parlia-ment by the then Union Industries Minister, George Fernandeson December 23, 1977. The main thrust of this new policy was

on efective promotion of cottage and small industries widelydispersed in rural areas and small towns. As a result, the listof industries exclusively reserved for the small sector was

extended to more than 500 items.Special attention was to be given to units in the tiay sector,

that is, units with machinery and equipment of up to Rs. Ilakh and situated in towns with a population of less than50,000. Margin money assistance, concessional finance and alot of other facilities were also to be provided to tiny units inthe small-scale sector as well as to cottage and householdindustries.

Following this policy an agency known as District Indus-tries Centre to deal with all the requiremenis of small and

village industries was set up in each district. Alwar was one

of the nine districts in Rajasthan where a District Industries

Centre was set up. All the services and sqpport required by

small and rural enfiepreneurs, for example, investigations ofraw material resources' supply of machinery and equipment,

provision of raw materials, credit facilities, marketing, quality

control, research and extension, were to be provided under a

single roof.

Local EntrepreneurshiP

Though local entrepreneurship was not much in evidence, there

were strong indications that. the trading communities in the

district, as also some of the landowners could be motivated to

take interest in industrial ventures. It was felt that a good deal

of attention would have to be given to the selection and train-

ing of local entrepreneuts.Some industrial know-how, and certain technical skills were

available but in small measuro. Therefore, a need to inculcate

new skills among the young people in the district through

development 4n{ expansion of facilities for tecbnical and

5l

RURAL INDUSTRIAI,ISAiYT*T

t6llll tltl

t=tttllltl

r*tlltl

\oN I li I I I I I

.+|.|\o\o.+ I | | | IF +.n- | | | I I

.\.l v) oo cn f- I I | | |

< ..t I

E6BSg .g s>!z-P *.^5

g; le t= ;E; J#AsEEEsdSS\d r- od oi o ,.: ..i..i e vi

:

GE

13,trI\

ri-

li6

lk

lrtrqtsI r{iI

I

tFl-l+a

\E

I

Itt

[\II

la'

lE

sp!.s

14

.Esss&

I'd

€

*:

V)

52

x

L

E

2

X

dl!!

c

t

c

!D

'Bt

'6

IHB SbItII.6 ANb fHE SAM,fLB

vocational education and on-the-job training in existing or newindustries was strongly felt.

Existing Industries

Survey ofthe region revealed that in spite of locational advan-tage and easy availability of infrastructure facilities, and theinclusion of some parts of this region in the National CapitalRegion Plan resulting in the creation of a relatively favourableclimate for the growth of small-scale and medium industries,the progress of industrialisation in this region was confinedonly to the tiny sector, and village and cottage industries.Table 9 gives a detailed aocount of the existing number ofunits by industry group, total employment in each of thesegroups in each of the three blocks included in the study.

An analysis of the rural artisans in the three panchayatsamitis :ulrder review, as given in Table 9 clearly shows thatcottage end village industries had played the most importantrole in the industrial development of this region. Lack oftimely finance and adequate marketing facilities were found tobe the two rnain difficulties faced bv these industries.

Industrial Possibilities

A comprehensive survey was conducted by the District Indus-tries Centre, .dlwar, with a view to underline the industrialpossibilities of each of tbe 14 panchayat samitis of the district.Table l0 shows separately, for each panchayat samiti included,in the study, the number of units that could be set up, invest-ment required and employment likely to be generated.

Table l0 clearly shows that in the tiny and village indus-tries sectors agro-based, forest-based and animal husbandry-based units can be set up in all the three blocks of the region.Thus, as per the survey referred to above, as many as l9lunits could immediately be set up with a total investment ofRs. 22.11 lakh giving employment to more than 450 persons.

Table ll shows the number of uuits in each industrygroup, total irvestment requlred and employment likely to begenerated as a result of this in the three blocks.

The overall impression gathered from this survey was that

53

RURAL INDUSTRIALISATION

=aR eFRg8Vi

TQN

' ^o

|.|0@

\o\p<$

.rr ^ o\rxc.r:<

=ES 9FRr.r oat-

EE' ;E,s;5 s; sEE EF :;6,EE.eg suee

r tl

-rON

at

s9o

trl

.a O q\5

r.rX=

a{

'83

66O

oQR

,ar?o,ri

3gR

oQo-5N

dcl

t5

Ct vt-

x

(!

"E'Eqa6-bEEb;x

-EFEEZOFI

$ece

,i)

It E

lEI

lsEld RIt,

IBFlEI

tsct.: its

ts1Et-IrttxHil* r:It* i.lsri

l{*lis

l$sI

ldNli"Er\'d

€

-:

54

alol

el., Io!lol

tDT

.)

c

ID

E

t

(9

l

I

j

I

THB SEITING AND TIiE SAMPLB

Tsbls U. Statement showlng industrial posslbilities by mrjor industr.vgroup in the North-nortbeastern rcgion of atistrict Alwar

))

Industry group Number of Inyestment Likelyunits rcqutrcd employ-

(Rs. in lakhsJ ment

Agro-basedForest-basedAnimal husbandry-basedTextile industryChemical ind6tryEngineering industryBuilding materialMiscellaneous

9870t530274l

8

102

JJJ)

50l51219

6.001.702.W1.30r.051.80

2.665.60

Total 22.11

the region had good infrastructural facilities for industrialdevelopment. Land and water were available at reasonableprices, and 405 villages out of a total of 429 in the region wereelectrified. The region enjoyed rail and road links, thoughinadequate. Trade and commerce was comparatively betterdeveloped. Khairthal in the Kishangarhbas block was animportant mandi which had a railway station and was also welllinked with the neighbourin g tehsil headquarters like Kishan-garh, Tiiara and Mandawar. In the matter of banking facili-ties also the region was better placed than the rest of thedistrict. There were in all 32 banking offices in this region ofwhich at least four were that of the Alwar State Coopera-

tive Bank. '

l

NOTES AND REFERENCES

The State of Alwar, a constituent unit of the erstwhileMatsya Union formed by the merger of the four princelyStates of Alwar, Bharatpur, Dhaulpur and Karauli, joined

the United States of Rajasthan-a larger union of theprincely States of Rajputana, on April 25, 1949 and came

to be known in its present form only after the demarcationof district boundaries of the nelvly created Rajasthan

State on November 1, 1956. See Manorama Year Book1983, (Kottayam : Manorama Year Book, 1983), p. 649,A lot of historical data pertaining to the district of Alwar

t9l

4.

f

RURAL INDUSTRIALISATION

are drawn flom the Distrist Gazetteer. Although, a bitout dated it iprovides informption not merely about the

historical development of thf district and its forrnatioaafter Indepdndence but als{ on various developmental

aspects like agriculture, edu{ation, health services, indus-

try, transpotlt and commerce etc. For a detailed account

refer to the R ajasthan Distri{t Gazetteers-Alwar (Jaipur:

Bharat Printers, 1968).

Ibiil., p. 679.Ibid., p. 68O.

Cnlpmn 4

The Erploratory Phase

The exploratory. stage was primarily concerned with, what maybe termed as basic 'path-finding' activities for the projoct, inthat it was to a great oxtent responsible for systematicallydestroying some of the most important project h-vpotheses andin turn, throwing up an altogether different set of plausiblerival hypotheses. The background investigations carried outduring this period thus, brought a series of relevant problemsto the fore and necessitated the designing of appropriate exper!mental changes and the setting up of corresponding suitable

. indicators for subsequent evaluation.The exploratory research for the project which was carried

out, for the most part, in the Ramgarh block of Alwar districtduring June-September 1980, dealt broadly with the followingvariables, necessitating seriou5 departures from the scheme ofaction as originally envisaged, and corresponding adjustments:

a) identification of villages;b) identification of beneficiaries;c) pre-test for the mode of approaching a village commu-

nity;d) identification and selection of industries having loca-

tional promise; ande) operational strategy for the action phase.,As already indicated, the exploratory phase was designed

with the intent of developing a programme prototype for theproject. This was accomplished under the present study byinitiating programme implernentation in the Ramgarh block, sothat the .pfototype could be subsequently improved into a workable programme model for the remaining two blocks nameln

fb

Kishangarh and Mandawar.testing and evahlration ofblock.

RI.JRAL II\DUSIRIALTSATION

are the results of the initialotype in the Ramgarh

certainly in no position todisposal -mainly human-

of the block. Our discussions

the Panchayat Samiti Ofrce,Development Branch.

option to go by:identified growth centres

and Oontwal. to the

programmers, researchers,the first two options were

Hthe

Identifcation of Villages

Identification and selection ofrural industries Posed one of t

for the proinotion of

study team faced. While we wantrickiest problems that theto make the programme

as broad-based as possible, we Ispend the meagre resources atover the entire letgth andwith the Industrles Department,

a) Concentrdte only on thenarnely-Naugaoir, MaujPur, M

As a result of discussions

bankers and the block level r

exclusion of the remaining 158 constituting the block;identified bv the Block

showed a concentration of;orrs had been identified by theDevelopment Branch(ADB)

Ramgarh, as Potential growthtedby the bank fbr intensive

and had also been adop-development. The

number of such adoPted villages the Ramgarh block was 47.

dropped in favouf of the third. option mentioned foremost,

which had also bqien suggested in project proposal as origin-ally envisaged, was given uP it would have made theprogramme too tarrow-based. second option, as suggest-

ed by the Panchayat Samiti Ofrthe following rea$ons :

was dropped on account of

a) All villag0s having a t

or may not be ea6ilY approac. b) In view of the overall

of two to five artisans mav

of development in the block,most such villageN were found toture facilities-sol essential for t

lacking in basic i nfrastrtrc-

b) Take up dach of ihe 147

Office, out of the total 162, whi

two or more artisans in the villalc) Cover onfy such villages

State Bank of India's Agricultura

pral industrialisaltion; and finallyy meaningful.programme of

t,HE EXPLORATORY PdASb 59

c) The constraints of resources-both human and financial-including the limited time at our disposal restrained us fromopting for this line of action.

Under the circumstances our choice very natuially fell onthe third option as suggested by the State Bank of India (ADB)Ramgarh, for the criteria taken into consideration by .the Bankbefore adopting a village were, by and large, similar to thoselaid down for the project:

a) Easy approachability;b) Reasonable levels of infrastructure development; andc). Reasonably managdable number (47) of candidate

villages from the point of view of the project,However, in addition to the villages adopted by the State

Bank of India, the team also decided to take up any othervillages of the block which may have potential for the develop-ment of rural industries. The following is the list of villagesfinatly selected and visited by the project team during thecourse of the 'action' phase.

Aooprno Vnuces or rsn SurB Blnr or lNpre (ADB)R,quclnn

l. Bandholi2. , Nangla Bankirka

. 3. Sareta

. 4. Ramgarh5. Tikri6. Kheri7. Bera Bas

8. Nivali9. Dohli

.t0. Poothill. Doli Ka Bas

12. Lalawandi13. Gauha14. Alavada15. Barod16. Chauma17. Khojaka18. Mohamadpur Ka Bas

19. Chidva

20. Kola Kalan21. Bagad Rajpur22. Khilora23. Sahdoli24. Nangla Alif25. Alarnpur26. Manaki27. Tisgar28. Kota Khurd29. Naugaon.30. Mubarikpur31. Nangal Nangli32. Raswada33. Jakhopur34. Bakayanka35. Nakhnoul36. Jugrawar37. Bilalpur38. Moondpur

HajipurNadkaNeekachBeejwa 46

47In addition to the above-listed

team also visited the following t3to it by various functionariesootential for rural findustries:

l. Churoti2. Khuteta Kbla3. Dabri4. Oontwal5. Milakpur6. Doli Ka B4s7 . DessoolaIn this way a total of 60

per cent of the poPulation of theby the project team for intensivephase.

DBprg Sruov or Frw Rnpr.nspnraWe may however, clarify at

included in the list comPrised

every possible detcriPtion. 'It

considerably in reqp€ct of caste

tional distributiort of the wc

etc. With a view to giving a

ments in the distridt we are givingdifferent villages chosen randomlyby the project tearn.

NU*,AL INDUStruAL$A1I6N

SainthaliBamboliKhuteta KhurdJatpurNangla Balaiyaadopted villages the study

which were suggested

the block office as having a

ChakoliMandapurKaririaMaujpurRaghunathgarhPata

covering a little over 40garh block were identified

ld work during the 'action'

VrLr-lcssstage that the sixty villagesrural settlements of almost

large villages havingno more than 20

of these villages also variedreligious divisions, occupa-and levels of development

picture of the village settle-low a brief account of fivet of the 60 villages visited

47.44.45

39.

40.41.

42.

2. Population3. Scheduled castes

4, Soheduled tribes

2,665 acresM

1,766289

F TotalI,s03 3,269 _

246 535

fI{B B'IFLORATORY PIIASE

5. Workers6, Non-workers

Distribution of llorkers by Occuparion

,S. /Vo. Occupation1 Cultivators2. Agriculturallabourers3. Live stock, fisheries, forestry and

hunting4. Mining and quarrying5. Manufacturing and servicing

(household industry)6. Processing and repairs7. Construction8. Trade aod commerce9. Transport, storage and com-

munication.10. Other services'

Total:

II. VrLLece DoLr KA BAsl Area 1,048 acres

PopulationScheduled castes

Scheduled tribesWorkersNon-workers

Distribution of Workers by Occupation

S, No. Occupationl. Cultivators2. Agriculturallabourers3. Live stock, fisheries, forestry,

hunting1. Mining and quarrying

6t

862 69 931904 1,434 2,338

M F Total606 15 62123 t0 33

31 3344-4

2683443 20 6323 2332r33

n- I67 t2 79

93r69862

Total64294

F305

48

t6289

M33746

2.J.

4.f.6.

r73t64

189

453

Totalr53

Mr52

6

FII

RURAL TNDUSTRTALTSA-TION

8. Trade and commerceg. Transport, storage and

oommunic4tion10. Other services

ilI. Vtllecs NrnKlcn1. Area

2. PoPulation3, Scheduled castes

4. Scheduled tribes

5. Workers6. Non-workQrs

Distribution of llarkers bY

S. ifo. OccuPatianI . Cultivators

4. Mining arld quarrying5. Manufacturing and servi

(household industrY)6. Processing and rePairs

7. Construction8, Trade and commerce

9. Transport" storage and. cation10. Other sertices

13 27

I

rl

t73 16 189

t4

I

M67565

344331

F Total580 r,25576 l4l

? 347577 908

MF237r73

l-l2-2

3-3

Total237

20

l-l7'l -- - 77

344 3 347

THE BXPLORATORY PHA$E

IV. VrLr.,lcBMalo.lpunl. Area

2. Population

577 acres

3. Scheduled castes4. Scheduled tribes5. Workers6. Non-workers

Distribution of lAorkers by Occupation

,S. jVo. OccupationI . Cultivators2. Agriculturallabourprs3. Live stock, fisheries, forestry,

hunting4. . Mining and quarrying5, Manufacturing and servlcing

(household industry)6. Processing and repairs7. Construction8. Trade and commerce

9. Traosport, storage and commuqi-cation

10, Other services

. Total: 96

63

M193

l0

9697

Total399l1

;303

F206

206

M F Total92 924 .' 4

46123

F

vI

I3

96

V. Vtrlecp MrlexpunL Area

2. Population3. Scheduled castes4. Scheduled tribes5. Worker56. Non-workers

328 acres

M

T

45

50

Total169

64

Distribution of

RURAL ITIDUSTRIAL'SATION

ilorkers by

Occupatlan

CultivatohsAgricultrlral labourersLive stook, fisheries, fiand huntingManufacturing and(househcild industrY)Mining and quarryingProcessirlg and rePairsConstructionTrade ald commerceTranspott, storage and

8. fio.t.

4.

6.

8.9.

M

:

Total

v2

FI

^aL-

cation10. Other services

Er,sctnrFlcnrtoN tN Tr{E lrrvs vlu.A,crsOf the five rePresentative identified above onlY four

were electrified while Neekach still waiting for its turn.

Table l. Electrifrcation In representative rlllages ofbloct

S. No. Village T!pe electical cowtection

frT,", wrut Domes- Commer- Indus- Totaltic cial tti^lworks tube

well

4645

l. Alavada2. Doli Ka Bas3. Mandapur4. MilakPur5. Neekach

t- 38 4 155

l-39TI

l-14

993525

8

t{l 40

Frorn the foregoing details of five representative villages

of Ramgarh block selected y, it is clear that the sample

As regards size theY haveincludes villages of a wide varie

iHB EXPLORAIORY PHASB 55

been found to vary from 328 acres (Milakpur) to 2,665 acres(Alavada). Similarly, representation of wornen in the totalwork force of a village in the repreqentative villages variedgreatly going as high as 8-46 per cent in Doli Ka Bas to norepresentation at all in Mandapur.

PnorrI,s oF AN AVERAGE VTLLAGE rN ALwAR DrsrnrctThe above discussion about the five villages of }tamgarh

block thus gives us a broad profile of rural settlements in theblock. The exercise was undertaken primarily to evolve a fairlygood idea of an average village in the district. Randomlyselected, these five villages of Ramgarh, as later research in theKishangarh and Mandawar blocks also corroborated, werefound to be fairly representative not merely of an average villageln the block but of the entire district of Alwar at large. Table 2gives a rough approximation of an average village in the districtworked out on the basis of the five villaees discussed.

Table 2. Proffle of an average village of Remgadr blo€k

S, No, Particulars Aia-vada

Doli Ka Nee- Manda- Mllak- Aver-Bas kach pur pur age

-t. erea (in acres) 2665

2. Population 1in Nos.) 3269

3. Workers (Nos.) 93t

4. Workers (per cent) 28.47

5. Women workers(Nos.) 69

6, Women workers (Per

cent) 7.41

?. Workers in agriculture' and allied activities(Nos.) 688

Workers in agricultureand allied activities(per cent) 73.00

Electrical connectionsof all description(NosJ 155

577 328 1234.4399 169 1146.096 46 321.8

21.M 27.21 28.47

I 17.8

2.17 3.78

1048 1554

642 1255189 347

29,43 27.64

16 3

8.46 0.86

95.62 74.06 100.00 95.62 85.46

2+9

41

44

t4

96168

9.

Thus ,the profile of an aYerage village of Alwar distr'ict as

it emerges from the above &ccount is that of a village scttle-

ment with a population of about 1,200 persoas' of whioh p

66

mere 28.47 lter cent are

The population constituting thepredominantly agricultural 185

per cent). Thus, the female

their homes and hearths andper cent) is engaged in anY econo

ln a total PoPulation of 5'73

included in the s4mple, nearlY 8

remaining 19 Per cent, the Mminority with nearlY 10 Per cent

ed by Sikhs 3 Pe{ cent, Jains 1.

cent, Buddhists .$9 Per cent andIn an averago village there

castes and .no s<iheduled tribes.Brahmins, Rajputs and Khatristhe dominant cagtes bolh econo

The economy is predominant

than 85 per cent of the populatiallied activities. The level ofboth on account of poor iof an adequate entrepreneurialuniverse of 819 households .co

villages under diScussion, nowere electrified. Thus, even

hundred per cent electrificationof the population has been able

connections and benefit from it.Out of nearly 15 per cent c'f

activity other than agriculture,4.31 per cent is engaged in iof the industrial lunits fall in thehold, artisan and cottage i

Iilentificat ion of Beneficiaries

Preliminary field work in thea near absence of entldecided to make a significantthe 'action' phaqe as originallybeginning, hor Ever humble it

RURA'L INDUSTRTALISATION

in an economic activity.work force in the villages ts

per cent) and male (96.22

lation remains confined torery small percentagq (3.78

c activity.persons in the fiveper cent are Hindus.

the total population,per cent, Christians

villagesOf thelargestfollow-1.5 per

me other communities.12.75 per cent scheduledng the caste Hindus, tbebi) have been found to be

cally and politicallY.agriculture based with more

engaged in agriculture and

ialisation is pitia'blY lowdevelopment and lack

and educational base. In aising tbe five representativethan a mere 28.68 per centAlwar could boast of near

rural areas, only a fractionto actually procure electrical

the population engaged in annly a small fraction, a mereies. More than 9'7 per cent

traditional sector i.e.. house-sector.

of Ramgarh block rcvealedtechnical skfl/s. Hence we

from the strategy ofged. In order to make a

ight be in the direction of

67THE EXPLORATORY PHASE

building up an entrepreneurial base, it was decided in consul-tation with the district authorities and the State Bank of Indiato launch a technical skills development prograrnme for theeducated unemployed youth in the villages, side by side withthe industrial development programme.

As a result of this, by the time the project team actuallylaunched the 'action' phase in Ramgarh block in September,1980 it had to devise a thrge-pronged programme to cater tothe needs of three kinds of possible beneficiaries:

l) traditional sector entrepreneurs;2) non-traditional sector entlepreneurs; and3) educated unemployed youth for technical skills develop-

ment pfogramme.

In view of the above divisions, it was decided to adopt atwo-fold strategy for the 'action' pbase. As regards the settingup of industrial units, both in the traditional and the non-traditional sectors, education of the rural populace about theneed for industrialisation was accorded top-most priority. Itwas realised that unless the entire programme could be takento the people on a participatory basis, it had little or no chance

of success.

Similarly, in respect of the technical skills developmentpfogramme as well, the team was convinced that unless thesemi-literate, unemployed and disgruntled youth in the villagescould be sumciently enthused to improve their lots by improv-ing their levels of skills, the project had little cbance ofsudcess. As a result, rather than imposing the programme fromabove as an outside intervention, the team decided to start byarousing a desire among the youth to learn to improve theirlot by acquiring new skills.

To overcome the above problems and simultaneously tointroduce the programme on a participativc basi$, completeidentification of the members of the project team with theprospective beneficiaries was crucial. The modus operandi adop-ted for reaching the identified villages comprised broadly the

following steps with minor adjustment$ to $uit the local condi-tions and circu$stange$,

of the project to the village headWith a view [o pre-test the ntodus operandi for approaching

the village, the tdam tried out thrpe different introductions foritself at such ocbasions. These were:

acoelerate the pace of rural r ialisation in Alwal district.The experiment was tried

identified for intensive fieldthree approaches elicited wi

in 12 ofthe total 60 villagesAs expected each of the

village headmen so contacted.vaiying responses from.the

We may add that in each ofthe 12 pre-test villages, thenever alone at sqch meetings,

The responses evoked by

' or his substitute was

a) Ask the accompariying government functionary tointroduce the tearn as a research team with close linkages bothwith the State and the district adrfrinistratiorl, and explicit con-sent of both to implement the rural industries plan of thedistrict: or

b) Be introdtrced as an agericy which had close linkageswith the State B&nk of India (ADB), Ramgarh, and was beingencourapjed by the bank to pf$rnote rural industries in theRamgarh block; or

c) The team used to ask th,e accompanying governmentfunctionary to introduce the tear$ as a non-official organisationengaged in villdge developmerit work, which was workingheither gn behalf of the National, State or district governmentnor on behalf of any particular !ank, but which had linkagesat each ofthese levels and ,eveh their tacit consent includingthat of the State Bank of Indip. (ADB) Ramgarh to try to

three different images of

fH8 BXPLoRATORY PHASB 69

the project team presented to the village headman in the 12pre-test villages, fall broadly in one of the following categories:

a) When the project tearn's closer linkages with the. SrateGovernment and the district administration were emphasised,the reactions varied from outright rejection to a patient dis-interested listening.

b) In villages where the introducef identified the project,team more w.ith the bank (State Bank of Jndia), either theirenthusiasm slumped or evon when curiosity remained, an ele-rnent of lack of faith in the intentions and seriousness of theproject team about its purported objectives would shroud thogathering.

c) Only rvhen the field officers ofthe project repeatedlyand. emphatically stated that they were nejther directly con-cerned with the government nor with the bank, but they werea Delhi-based organisation engaged in village developmentwork who had the 'means' and 'influence' to get things doneby either of them for the sake of the people, that the atmos-phere of reserve aud general mistrust of the outsiders wouldbegin to fade out gradually.

Such a line of action adopted by the team thus accompli-shed, what would not have been otherwise possible, namely,identifying itself with _the interest of the villagers rather thanthose of the government or any othet 'outside' agency.

Selection of Industries Having Locational Promise

Having surveyed the physical and social environment andgained sorne idea of the industrial climate of the district, whichthe team found to be congenial for a rea$onable pace ofgrowth of industries in the district, we started intensive workin the direction of obtaining first hand knowledge of the indus-trial possibilities in the rural areas.

The task of identification and selection of the right type ofindustries for promotion in the rural areas was thus assignedconsiderable importance by us, for it was realisecl that thesuccess of the 'action' programme hinged more on this singlefactor than anything else. Consequently, it was decided tothrash out the matter at each of the three levels, viz., pblicymaking, policy implementing and the people themselves before

?0

reaching the final decision.As a result, ddtailed di

missioner of the Khaili and Villalevell with the Chief SecretarY'

Industries, the Diiector of Iand Village Indrlstries at the S

Joint f)irector dnd otherCentre at the district leveli withlndustries Extension Officer, Agriother functionaries of the blockwith the village Xevel workers

village level. Keeping in view the

ced raw materialls, the level ofand locally availableof industries-one each for the

tional sectors weie PrePared:

A) TneotnouAll SEcroRl) Leather industry2) Pottery3) Carpentr$4) Fibre (Mdonj-ban) ind5) Handloom dyeing aud6) Blacksmithy7) Basket making8) Oil expelling (Telghani)9) Sculpture

10) Weavingll) Durry mdkingl2) Carpet mFkingl3) Hand-made paper

14) Cottage rhatch industry'15) Gur khand.sari industry

B) Nos-rneorrrfilllr- SncroRl) Power ghani2) Saw mill3) Flour milll4) Dal mill5) Ice candy'

RURAL INDUSTRIALISATiON

were held with the Com-Industries at the national

and Special SecretarY

and the Director of Khadilevel; with the Collector,

of the District IndustriesBlock Development Ofrcer,ture Extension Officer and

ofrce at the block level; andpanchayat secretaries at thevailability of locally produ-infrastructure development,

skills, two separate listsional and the non-tradi-

TTTB BXfLORATORY PHASB

6) SoaP factorY7) Lathe8) Welding9) ComPressor

10) Candle makingI i) Steel furniturel2) Woollen garment kilitting13) Ready-made garments

14) Stone crusher15) Auto servicing workshoPs

v1

As regards the choice of industries included in the two

lists, we would like to clarify at this point that the resource

base of the selected comrnunity-human, physical and material-,- serVed as the leading criteria. That is, nearly eighty per

cent of the industries included in the two lists were such with

which the people were already familiar and for wbich demand

also existed. In other words, the selected industries were both

need-based, as well as resource'based:

However. in the case of both the lists we decided to include,

even if tentatively, at least three industries each, for which

physical as well as material resources existed, but the entre-

preneurial ability remained to be explored. Such industries

were hand-made paper, cottage match and Gur khandsari

in the case of thb traditional sector, and candle making,

woollen garment knitting and ready-made garments in the

case of the non-traditional sector. These industries were enlist-

ed purely out of an academic interest which led us to find out

anJ record people's reactions and reservations about setting

up industries which even though both resource-based and need-

based, were unfamiliar to them.

Operational Strategy for the Action Phasc

With a view to sharpen the focus and make the siguificance

of likely project contributions more readily and easily reco'

enisable, we felt it necessary to thrash out the strategy forihe second that is, 'action' phase in consultation both with the

various levels of policy planning as well as policy imple'

mentation. As a result, before launching the 'action' phase

we held a series of meetings with senior officers of the $tate

IZ

and district adrqinistrations,extension workefs of variousin the area. Such an exerciseboth in respect of programme cofrom the strategy for the 'action'The following are some of the mwhich tvere redefined by us in thethe exploratory phase.

a) Our concern for makingspreading the meagre resources atgeographic arba, fesulted in restrito tlree contiguoUs blocks out ofnortheas{ern region of Alwar

b) Further, lteeping in viewof the research methodologyproj€ct, it was decided inand specialists inrthe field ofonly one block for programme iThe rationale for such aexperience in programme implemeapproach for thp remaining bltherefoie, dccided to start ibloc'k which also had the addedof view of the project, of theDevelopment Branch (ADB) ofRamgarh.

c) In view of th€ limitedfinancial-and the limited tirne atto corEentrate r$ainly on th€based industries in the tinyprecise, both traditional and non

d.) Furthei, preliminary fieRamgarh having revealed abase as regards non-traditional igive greatest possible

falling mainly in the cott&ge Ende) I-ack of ah adequate

ebspnce of iskilled or even semi-slneco*sitat€d one of the most s

i

o*iginal -scheme,fdr the 'action'

RURAL INDI'STRIALISATION

onalised banks, and theelopmental agencies active

itated several departuresano pfogramme contentas originally envisaged.

important project variablesight of insights gained during

concerted effort instead ofour disposal over a largerIng the programme coveragetotal of five in the north-

e rather promethean natureby the Centre for this

with policy plannersindustrialisation. to select

on to begin with.gy being to gain sufficienttation so as to modify the

if necessary. It was,field work in the Ramgarhadvantage, from the point

of an Agriculturalthe State Bank of India at

both human andur disposal, it was decided

industries-local resourcecottage sectors, to be mo.re

work in the villages ofabse.nce of entrepreneurial

es, we also decided toto the traditional industriessan sectofs.

ial base and a neartechnicians in the block

t departures from theIn order to ma.ke a

THE EXPLoRATORY PHASE itbeginning, however humble, in the direction of building up anentrepreneurial base, it rvas decided in consultation with thedistrict authorities and the State Bank of India to organjselocationally relevant training programmes in various technicalskills for the literate and even semiliterate unemployed youthin the villages of Ramgarh panchayat samiti. The varioustraining programmes offered are: (i) Tractor mechanic, (ii)Motor winding, (iii) pump-set repairs, (jv) House wiring, (v.l .

Tailoring, (vi) Lathe machine, (vii) Carpet weaving, (viii) Shqemaking, and (ix) Blanket making.

f) Finally, in view of limited response for the non-traditional industries and a rather encouraging response inthe traditional sector, necessary conditions for the promouooof which were found to be present in a good number of villagesof this block, it was.decided to cover as many villages aspossible and not concentrate merely on the .identified, fourgrowth centres, as brigiDally envisaged.

Cnlrren 5

Action Phase

Industrial DeveloPment

The 'action'Phase of the Project enced in October, 1980

a total period of twentyin the Ramgarh block and sP

months uP to MaY 31, 1982' duri

for intensive field work were also

eight months, i.e'; uP to tvtlV Jt,

spent in the imPlementation of ttaneously in the Kishangarh and

In anY action''research Projectdeliberate exPeriment, a series

almost inevitablY involved. Instage imPlementation of the 'actigarh block, made us revisitstudy, and forced us to

1) As regards the ruralfor implementation in these bl are as follows:

which time the remaining

Of these, the firstwere spent exclusively

a controlled and

experimental changes are

present Project too, the first

'- programme in the Ram-

of the major Premises of the

our strategy both in respect

technical skills develoPment/e two blocks, Kishan'

more important dimensionsthe Ramgarh exPerience,

months uP to MaY Jt, ttbz, stwo blocks of Kis'hangarh and war included in the study

in the Ramgarh block, while the twelve months were

'action' Programme simul-

andawar blocks. Follorv-uP

in the Ramgarh block was

and May 1982, while thatof the reciPients of the Pro

also carried out between June 198

for the latter two blocks it was during the remaining six

months Period of active field wor

1982.

between June and November,

development programme,

ACTION PHASE

two main changes were made after the Ramgarh experience:i) In respect of identification and selection of villages, it.

was decided to cover only such villages in the Kishangarhand Mandawar blocks which had a concentration of ten brmore artisan households. The policy of taking up all thevillages 'adopted' by a comrnercial bank, as followed in thebase of Ramgarh was dropped due to the following reasons:

a) Scattered loaning of artisan units jn the Ramgarh blockwas found unfeasible from the bank's point of view as servicingof widely dispersed small advances in the 'adopted' villages washighly uneconomical; and

b) It was found that all the 'adopted' villages may or n]aynot have artisan inhabitant$, and the so-called 'adoption' mighthave taken place solely because of.the agricultural potential ofthe village.

As such it was decided to hand-pick only such villages inKishangarh and Mandawar blocks, which had a sizeable popu-lation of artisan com munities.

ii) Taking into view the lack of sufrcient technical skillsrequired for non-traditional industries, inadequately long periodof time (two to three years) required for obtaining an electricalcoonection for setting up a non-traditional unitl and the thenprevailing credit squeeze policy of the Reserve Bank of India,it was decided to concentrate mainly on the traditional sectorfor which the conditions were much nrore favourable.

2) Together with modification in the strategy for setting uprural industrial units, crucial changes were brought about inthe selection criteria for skills development/upgradation pro-grammes, in sequel to.the experiences gained while attempt-ing to organise such training programmes in the Ramgarhblogk. Two of the more important modifications in the modusoperandi in this aspect of the 'action' programme are asfollows :

i) In view of certain operational problems faced in organ-ising skills development/upgradation for the youth of theRamgarh villages, it was decided to enlist the participation ofrural youth for such training programmes only which fell strictlywithin the purview of government criteria, i.e., DIC and SFDA(now DRDA-District Rural Development,A,gency) criteria;4nd

]5

16

ii) IneffectivEness cif the

ft.tJRAL I\IDUSIRIALISATION

infrastructure in. organising

technical skills development trei programmes, as observed

in the Ramgarh block, forced the team to cut the range

of such vocational courses bei offered to the rural youth,three in both Kishangarhfrom eight in the Ramgarh block

dnd Mandawar.Having satisfabtorily comPlied with all the decision-point

ratory phase; pre-tested theoriter.ia laid dor{n for the explmode of gaining 4ccess into rural. ements and duly effected

suitable modifica, ions ir.r the ' ion' strategy, the field-con-tigent of the project team towards the next and the

most vital step-identifications an then disbursement of assis-

assistance i. e., financial andtance to recipients of both typestechnical trainingr Field work inblocks under study, took broadly

Frnsr VrstrThe task of identifying the

in October, 1980 tin the Ramgarhthe team, consitsting normally

escorted the team to him and a f

of these in the threefollowing course:

ive beneficiaries startedDuring the first visit,

of a Field Activist and aResearch Associate, would visit of the 'adopted' villages inthe company ofl the Industries Extension Officer or VillageLevel Workers, or Panchayat . On reaching the village,enouiries were mode from by about the whereabouts ofthe sarpanch, or i]n case of hiselder. As stated earlier, no

:, of an alternate villageious aopointment was made

for such meeting$.With the result these meetings took place. in a completely

informal atmospllere in the lat ghar. sarpanch's house,village chaupal, the village , or sometimes simply undera tree with a few cots sPread out br the visitors. Dependingon the site choben for the ing, the size ofthe gatherin!varied from five to l5 persons. ven when lhe sarpanch wasfound alone in some of the the person or persons who

passers-by would invariablysather around out of sheer curi / to know the purpose of ourpresence in the vlllage.

The government functionaryteam in terms of a non-official

then introduce the projection engaged in social

work and develoPment of the and also that the organisa-

AcTroN PrrAsE 77

tion had selected the Alwar district for its work in Rajasthan.With a view to elicit attentive listening the functionary wouldspecifically mention that although th" ug.n"y had.contacts,at the highest levels in the government and ihe banks (StateBank of India in particular), it was representing neither ofthem.

One of the team members then used to take over the conver-sation there onwards. He rvsuld once again clarify the statusof the team vis-a-vis the State Governmenl the district adminis_tration, and the State Bank of India, and then explain the pur_pose of the project. The objective was always stated rn tetms ofsetting up village industries with a v.iew to provide employmentto the people so that their own living standards would improveand never in terms of the team's desire to implement thedevelopmeqt including industrial development plans of thegovernment.

. .A three-faceted..programme for improving industrial activity

rn the concerned village was put forth by the team:a) Setting up and/or expansion of industrial units in the

traditional sector;b) Setting up and/or expansion of industrial units in the

non-traditional sector; andc) Organising training programmes both in the traditional

as well as non-traditional sectors so as to impart new sklls orimprove ihe existing levels of skills of the village literate andsemi-literate unemployed young men and women.

Having explained this, the team would then ask the villagesarpanc h felder to call a general meeting ofthe village so that themessage could be conveyed to everybody in the village. Nor_nrally, such meetings were called within a day or two of the firstcontact meeting. In a number of srnaller villages or hamletssuch meetings were organised the same eveninglas of the firstcontact. But in villages where the team was asked to come ar &later date, the time given was either in the mornings b;i;.;;i;a.m. or after 7.30 p.m.

Sscol.ro VrsrrThe field staff would thed visit the village on the appointed

day and time. At suih meetings the projectleam was not neces_sarily acconpanied by a goveinment fuirctiofrary. a"t ir, "nr"

it

78

ahead with the Proceedings,

was. then the initi|l introductions

tives were stated hY him.Whether the time fixed for

evenings, the team used to reach

ing at least half ah hour in advan

we rarelY found qtore than two to

company of the villlage headman, '

village or otherrqise set apart

upper caste com{nunities.In each of the villages visited

restricted to twq to five

faced. It was onlY in the

the course of this studY-the course of this studY --:that

communities wab discerned.Our queries from various

in the case of villages-seventeen duringto leave out the lower

IURAL INDUSTRIALISATION

the team and its objec-

meetings was mornlngs or

site of the ProPosed meet'

/village headmen as tothey announced that every-of view of the project had

. ExcePt on a few occasions

our p3rsons normallY, in the

rvould alreadY be assembl-

ed and rvaiting at the ProPosed I ion. Quite often we found

none at all and we had to contact the sarpanch or the village

ngers to fetch the People.elder who would then send outThe villagers would then coming in grouPs varYing in

size from two to 15. The larger ups were invariablY foirnd

to be those of scheduled or otherwise of lower castes

engaged in the salme trade or itook an hour cir so before

. The Process normallY

e in the village, who was

interested or eve$ curious, assem

The Practice df sending out gers in this manner was

soon discovered to be PartiallY ineffective. ln no less than

twenty per cent of the villages

the larger villages, a tendencY toed by the team, especially

eave out the scheduled castes

or some other b4ckward castes found prevalent among the

ed that it was invariablY ator other dominant caste

t visit the lorv caste hutments

ally on the outskirts of the

the main dwellings of the

ask the village elder if in hisof the team members would

on every community in the

village had been intimated about meeting and whether each

er villages where the strengthlow caste communities was

lds, this problem was never

whether everyofle was Present'r..^iw who mattened from thebody who matteped from the fassembled and lthat

we oould

ACTION PHASB 19

elicited cold or at best evasive responses from them. During thecourse of our field work we came across one or. all of the follow_ing three explanations and excuses most commonly employedby the village headman:

a) They (the SCs and such other low castes) do not under-stand or will not understand what the team might have to say;

b) They (the SCs and other low castes) are not/will rlot beinterested in whatever the-team might have to offer to them:

c) They (a particular SC community) cannot be trusted asthe entire community is more or less nomadic and criminal.Therefore, they "will never" repay whatever assistance is provid-ed to them.

Soon the team discovered that there was no use in pushingthis point further and decided to individually contact memb€rsof such communities as were left out during such meetings.

All the villagers having gathered (total strength varying fromfrve to 25), the accompanying governrnent functionary or in hisabsence the village elder would call people's attention and askthem to listen 'carefully' to the visitors.

One of the team members then used to take over the conver-sation. As regards introducing the team and its objective in theconcerned village, as stated, he would introduce the team asrepresentatives of an organisation engaged in rural developmentwork. Further, although from the point of view of winningover people's confidence in the team's capacity to put intopractice whatever the team proclaimed, its.contacts' even atthe highest level of government were. pointedly stated, in nocase was the team presented in the manner of an agency repre-senting the administration.

Similarly, as against stating the objective of the projectdirectly in terms of its desire to promote rural industrialisation.an indirect appeal was made to elicit people,s participation inthe implementation of industrial developmeirt schemes whichalready existed. The idea was to frrst educate the people aboutthe need as well as the practicability of industrialising thevillages.

The strategy employed comprised two sets of questions, eachposed one after the other to the entire assembly at large. Thequestions were deliberately so framed that the first set invari_ably elicited ninety per cent or more negative responses, while

80 RURAL INDuSTRIALISATIoN

the second set eli0ited positive response in nearly cent per cent

of the cases. l

A. l) Are you aware ihat the government has declared

your district (Alwar) as a backwarp district, and has' therefore'

provided for sevetal typqs of assistbnce for your upliftment' not

ordinarily available to people in dther districts?

2) Are you aware that th€ government provides 15 per

cent subsidy (25 per cent in the ca]se of scheduled caste/schedul'

ed tribe enrepreneurs) to new uni[s on fixed capital?'

3) Are you aware that the District Industries Centre pro-

v.ides composite loans of up to R.si 15,000 to rural artisans at a

nominal rite of interest of 5.5 per cent (46 paise sainkara maha-

vari), of which the working capirial loan is for five years while

that for fixed capital for 15 yealsf

4) Are you dware that artise+s and craftsmen among you

can get a loan frdm the governmelrt at a nominal rate of interest

of 4 per cent?3

5i Do you know that to the $ducated unemployed the State

Government even provides margiri money loans at a liberal rate

of interest of 4 per cent per alhnum, repayment of which is

required to be made only after thf PrinciPat loans from other

frnancial institutions have been repayed?

B. l) Do you agree that mdst of the people in the village

ara poor either because they have no land, or if they have land'

it isloo small or otherwise inadeduate to afford them two square

meals a daY?

2) Do you agree that among fou thele are quite a ferv good

artisans in this villlage who are eitlier out of work, or if they have

work. unable to earn a decent livfng because of lack of sufficient

capital?if some of you could start3) Would You not consider

industrial units of the description B, or C for instance, not only

would there be another fullY and self-suPPorting Per-

son added to thd village, it w also make the availabilitY ofgoods/services oo Produced both' readily available and less

expensive for evorYbodY else in village?if the educated unemPlbYed4) Would You not corl

young boYs and girls of the vi who at present do PracticallYskills A. B or C for instan€e,nothing, w€re suitably trained

woulJd evcntually becomo g(oat to theit families and alsq

Aclroilr PIlASi 8lth.e village whether they started their indefendent unit in thevillage- or found employment in the neighio;ing towns withthe help of the skills so acquired?

5) If, in spite of all tire facilities provided by the govern-ment as stated above, we do not avail of them und ,t"y poor,who should we really blame-the government or. ourselves?n

In response to these questions we found that in nearly g0per cent of the villages, most people had heard about the piovi_sion of 15 per cent subsidy. In the remaining villages peopleincluding the semi-literate among them had oold.u ofany suchfacility being provided by the goveinment. But even among thevillages where people .knew.', the general impression was th&tsuch facility was available only for,the purchase of buffaloes.b

The usual reaction which the above discourse provoked in,practically all the villages visited by the team, was that of silencefor a few moments before each person broke into' hushed_toneconference with the person/persons sitting next to him, getting,louder and louder gradually. Such a state of affdirs used tocontinue until they were intercepted and invited by one of theteam members to express thoir reactions.

Once again silence would prevail before one of the villagersspoke generally assuming to be representing the consensus ofthe fellow villagers. Their responses . generally used to be fromanrongst the following. The number of villages falling in eachby these response-types is also being indicated against each inbrackets:

I ) No interest in the programme (22 villages);2) Interbst in the training piogramme if there was an assur-

ance of subsequent employment (20 villages);3) A specific enquiry by an individual about a particular

type of,industry (l I villages);' 4) Asked for more time to consider it among themselves (42villages);

5) Continued silence until further provocation (13 villages),in which:case five villages expressed no interest while rn threevillages the people wanted more time to discuss the matteramong themselves.' Thus, whatever the individ0al reactions, the general.consen-

sus of the people after such oeetings used to be either continuedlack of interest in the programEe, or a desire to get more time

-t

to reach the eighth stan-

82hURAL INDUSTRIALISATION'

so as to discqss and reconsider the among themselves. Inof the villagers, the study

ith a promise to visit the

village again within two Io three ys of this visit.

CoNracrtNc ScuEourrn Ca'srn/ C.qsrn Anttslx GnouPs

villages visited bY the team,

e to low caste communitiesAs stated, in sPme of the bi

certain grouPs of PeoPle bethe message was not con-personal cYnicism and dis-

all descriPtion' Informa-collected with the help of

were normallY lef! out either beca

veyed to them or because of

SecretarY or village level

worker.

eitter eventuality; ibefore taking lea

team used to further reassure them

interest.in developmental schemes

tion about such grouPs of PeoPle

the' accomPanYlng PanchaYqt

In rnost cases the team

people immediatelY after -the

to visit the hamlets of these

assembly. AlternativelY,

an awateness amongst these

AS IN village assemblies' OnlY

i -"rtug. was conveYed to t either directlY or through a

visiting their hutments themessenger that the team would be

following daY' Table I shows list of villages and communi-

ties contacted separately from the village assemblies bY ,

the team.The basic aPflroach for

groups remained the samees offered to these Peoplethey were 4lreadY Pursuing' '

ih" tung. of industrial Possib

remained restricted to the

Even in resPect of imParting new ills. the choice had to. be

restricted to verY elementary trades because of the

near absence of lliteracY among groups. Table 2 shows the

nging to those communitieseducational levels of the Persons

who were contacted bY the team'loriging to the scheduled caste

contacted bY the team' onlyThus out of the 450 Persons

and other backward communities

82 persons (18.22 Per cent) were te. Of these, nedrlY 67'

Der cent could ohlY read while remaining 33 Per cent couldeducational trevels ' attained '

read as well as rtirite. As

by'them, 47 Persbns 157.12Pet ) had attended school butof schooling; 22 Persons

.fifth standard, and onlY 13

ACTION PHASE83

Table l. Llst of vlltag€s where separate [estings ryer€ arrans€d witbSchedoled/Backward Castes comnunifies

,S. Na. Block Name of village CommunityA1.

2.

5.

6,

7.

86.9,

10.

I l.12.13.

c 14.15.

16.17.

Ramgarh

Kishangarh

Mandawar

AlavadaBamboliChidwaMilakpurrOontwalSainthaliNaugaonBahadurpurBaskirpalnagarBolniChamraudaKhanpur MewanrNangal MaujiaNangal Bawla'SeelgaonTatarpurTinki-Roodi

Weevers and. hsrijansChamars and haijansMoonj-ban workercBasketmakersMoonj-ban workersHarijansHarijansWeaversWeaversMoonj-ban workersMoonj-ban workergHarijans and, carpentersSir&i makersMoonj-ban workercMoonj-ban workersMoonj-ban workercShoe makers

l. Basket making trade in Milakpur is caried out enttiety by younggirls and women of the punjabi families, who r€fused to attend thecommon village assembly held at the panchayat ghar. With the result theteam had to approach this group of artisans separately.

2. Out of households o{ carpentets in this village, the saryanch introdg,_ced the team to only one family-economically the most prosp".ou. on"with nearly 25 bighas of irrigated land, three prcca houses, a tractor anda large number of cattle heads. The other seven farnilies though lessprosperous, indeed even poor and needy, were ignored by the sarpanch onthe pretext that "No matt€r how much the government tries to improvetheir lot, they won't care one way ol the other."

3, In Nangal Bawla, the majority of the population belongs to one ofthe two communities-shoe makers or moonj-ban workers. But since theformer are economically and politically stronger than th€ latter. theirmesseng€rs failed to contact their households and return€d with th€ infor-mation that the "Goarias (a scheduled caste community engaged inmoonj-ban work) do not want any loens."

Distrust of the outsiders and resistance to change were foundto be much more pro ounced among these communities. Theinitial reaction of each of these towards the project_team andthe developrnent programmes offered by it was an :emphatic'No'. When provoked further, the leader among them wouldcome up with a'what you say must be right, but as far as weare concerngd, we do not want anything from the government'.

No. oftale

A Rangarh1. Alavada2. Bamboli3. Chidwa4. Milakpur5. Naugaon6. Oontwal7. Sainthali

B Kishangarh8. Bahadmflr 74

9. BaskirPal'nagpr l0

10. Bolni 30

11. Chamrauda 25

12. KhanpurMewan 15

13. NangalMaujh 9

3

C Mandawar14. Nangal

Bawla15. S€€lgaon16. TatarPur17. Tinki-

Our best atte+Pts to exPlain I we were not repfesenting the

government had no effect

usual Une of argument

tesm did not n€Pres€nt the

seen amongst [hem." 'or

on thes€ Poople. The

up by these People was "if the

ent, it had no business to be

eam feiling to make aoy kind of

Tablo 2. f:ddcrttotr.t bvdt'of'in

stated above rand tbe Projectdent in thoir resistance, thQ

mally overheard beiqg Putsing the mattgr among ther

lines: I

RURAL INDUSTMALISATTON

Caste artissns

rogtor ot Alflsr ilistrbt

No, of'personscontac'

ted

BloeklVillage ffi

school stan- dard and

dard above

4r4-2-2325r2-lll

38,)

235

39

15

1051ra,

I1

I

1-

7

22

J

J

.,

1

t2

I5q

34425 1

t418 3

I2

321r-l

1

13Total

there was a stalemate a$

and comments it nor-by the peoPle while discus-

used to be on the following

ATTTON PITASEi. B'

' I) If the governrnent is actually giving all these facilitiesthen there has to be a 'catch' somewhere;

2) Ifthe government gives, it also knows hbw fo take itback;

3) No harm in accepting a genuine offer of help, but whohas the time to run'from pillar to post in order to get it;

4) You are well aware (one villager explaining to other),"I already have rnore than enough work to keep me busy; start-ing anything new is simply unthinkable for me"; or

5) We are just the two of us-what do we need exfta workfor?

In the face of such a,defensive attitude, the study teaminvariably returned from the groupb of scheduled/backwardcaste cornmunities, without any results during the first visit.Surprisingly, with a few exceptions, the type of excuses andarguments made by these cornmunities werc practically the samein each of the village$ visited.

In each ofthese villages only one person spoke on behalf.of- everyone else whether the question was addrcssed to theassembly as a whole or to a particular person. The spokesmirnfor. the community would never ask for the opinion of othersbefore expressing his views. When one of tbe project membersasked if everybody else agreed with whatever one of theirnumbers had just said, the mply of the group was invariably inthe affirmative in each village.

Though considerably discouraged.by the attitude of thesegroups, we however decided to probe the matter further. Witha viqw to have a deeper understanding of the psycho-socio-economic barriers which were preventing these groups fromparticipating in the programme, we decided to contact eachof the persons individually instead of speaking to groups.

Our Field Activist therefore, started contacting the merhberbbelonging to thes€ communities individually, whenevei anilwherever they were available for a frank discussion. On anaverage ten to fifteen persons of a group could be idterviewed ina single day,. gn1t one of the team members used to be pres€nrduring such interviews. Basically two types of iriformation wasgathered during these person.to-person informal sessions:

a) Data about the socio-economic characteristics of theincumbent; and

i

i.

-1

86 RUhAL INDUSIRiAiISAIION

of assistance

b) Personal fears and tes

rssistance with the helP of project team.ons ln accepllng any kind

Table 3 sho*s the age, edu, ion, property and livestock offive persons each selected y out of scheduled/ backward

caste communities from two each in the three blocks-Ramgarh, Kishangarh and M under study.

socio-economic profile of thefrom amongst scheduled caste/

six villages, two each fromndawar blocks falling in the

society. APart from their cal relevance this data also

highlights peculliar demographic

of different artiSan communitiesand living styles

rural India. For the region

as a whole, the average size of family works out to 6.8 mem-

bers of which loss than half (48.

5l .9? per cent are non-working3 per cent) are working while

dependent. But within thts

universe the woirker: non-wo ratio varies widely from 36:

of village Chamrauda in the12 for moonj -baz Sikh workers

Kishangarh block, to 5:24 f a scheduled caste shoe-making

community of village Nangal la in the Mandawar block,that can be discerned fromAnother characteristic fe:

the socio-economic Profiles of artisan groups is that the

artisans in the Ramgarh block economically much worse offand Mandawar blocks. Forcompared to those in Kishan

of Alavada in Ramgarh to

find that in the former onlY

in the Kishangarh block, wetwo of the five artisans have aother three do not have evenkucha hut of their own while

that. in the latter all the

Similarly when we comPare the

Sainthali in Ramgarh block t

north-northeastern region of Althat these PeoPle belong to

infrastructural develoPment

district thus clearlY shows

lowest strata of the rural

families own pacca houses.

moonj-ban artisans of. villagethose of Chamrauda in thethe latter not only have morg

er wo dly possessions andand livestock etc., than

e economic performance oftical trade over diffefeul

blocks can be attributed to a large extent to the levels ofin each.

81

I

o

o

9qt-€.Fll r r IE e'

h

s*eZE -E=$g=s

dOt Er' € f;s ' '

.r.i sz-{-a.c .r E EAR cts?r | -\+* I *.s- | .s--: -:€s 'aPM r< 6r -lo.:

o0

v)

x(!

\oN 0\

$ a'l t

'l

hi, 6 E, | || tr El | |

C.l

q)

(.)

I g s3 I

99* - Fl

*? E ;S 5 th"s,1 - <5*!n € =F E E9EtS .; gE i EE-^ /i|<ii

<

AetroN FhAsli

tE.l*l

3^ri

.s

tr.{

T{L"a:t,ass ptF !

!)s

i

R

e

s

u)

ID

z.,

c.E .E9E€'6-E,-r.

'),-,Eoz.z;AOE9

o

o

H

RURAL INDUSIRI{LISATIOI.I

6txoA?

.9 -9 -g -9 s"9()() (., :Eaala 6d8ilii 'ii F

{ ! s g, s z;;-3:.RR, .9

$E s s$E; s

l":

ze zE€;;*< Fs.$d*t.{:c:!,ar .E -! X

.f .* \g t-.1

1

I

ol

!

q

-

AI

o!'trE t r

a0

aNss 3

O-9S. gxA ^e €6sH F ilc3z?.=- !A-* F'd E _JstE s#

0

agE\IZ)drl.! L.r s.:il c iBs ,g sE,{

vs,i

.ssi.s:s9S.i6XE:R

IE

lrlI

I

-l

$iE

l<II

II

tgisto

ltl

ss(t:bli'Slc;c/t l<

I

t.t:'lo,e

E

-lsr:'l

I\

ttsI\=^.trEss i<': x,

88

'r.;

E

(|)

-ql

L-

89ACTbN pHAsB

a-a.l

ut

r =>s.-,o q o: di I(J v o 5"9< HiN

.t

- "idE I o -

I FsEegE $'o --.: 2E".As o E .i ":3 5 :lEr.o E d:o!-c - | S 6,4Es l'€-sE'a I ^r *,E Y.o{ q 6s{

fr r g:c F

ss=iss=ss*;

^3

i:!]+to:

; u;$:vdl:!

ellz:

F--*€ ' 2

::g E : :

rE

N

atatON

.:d: - F-ad EEF IESS i*i E

x-q FJ;i a{a<\>

Q

F-c.l

00

a

lir

.a{

oo

v)

v)

v)

ituul NpusrniALrsAtroN

rit)ITE€ EE& t iix

g*aaEe;rr*.1 * cl€-

3?* E

:S$i: s$s€$

sEg a

ll

Q'a oc.. rq t

&6>r a:cl ': al!:trxddu 6

to(A

F.,

qE*EqE;

g

.l

*

F

.E!.L:ES

e$V)

.+*ax!

s

ts*€:t:sx $E*:= R.

I

90

r-iir:

Actl6t,i iiiesB

If we analyse the above data we find that in a universe of30 artisan families in the north-northeastern region of Alwardistrict 50 per cent families are landless, of which, 40 per centare in Ramgarh block, 26.66 per cent in Kishangarh block and33.34 per cent in Mandawar block. Similarly, it can be seenthat among these artisans, only 1l families (36.66 per cent) havea pucca house, 14 families (46.67 per cent) have a kucha httwhile the remaining five (16.67 per cent) do not even have adwelling of their own. Further, thdt nearly 36 per cent of thekucha hotse owners and 80 per cent of the houseless are fromRamgarh block alone.

Among other worldly possessions like movable items of pro-perty, we find that of the total eight families who do nor ownany such property, at lea$t 50 per cent are from Ramgarh alone.Similarly, in telms oflivestock possessions also it can be seenthat nearly 60 per cent of all such'families.who do not own anylivestock are from Ramgarh alone.

With the only exception of moonj-ban artisans of Cham-rauda in Kishangarh, it was found that both types of familiesof artisans-.landowning as well as the landless (-) depended onagricultural labour work to a very great extent to earn theirliving. In the spare time, provided the requisite raw mirterialwas available in the neighbourhood and the people had themeans to purchase it, they would pursue their artisan vocation,or else waste their time doing nothing.

Separate interviews with individual mehbers belonging tothese communities to explore the personal reasons of each forthe non-acceptance of any kind of assistance elicited universallyidentical responses irrespective of the caste, creed, location orvocation of the incumbent. These interviews, which wereconducted in a very intimate atmosphere and'given a highlypersonalised treatment comprised of open-ended questions andtook broadly the following course:

a) Apprising the villager in the simplest possible mannefofthe objective of the project team. in terms of the types ofassistance it could help him obtain. In a conversational situa"tion at the field level it took broadly the following form: ..We

came to know (the sougce of such knowledge was neithersought nor volunteered) that the people in this district are verypoor, We rvere also told that the government and the banks

91

in this area had reserved

rNDUsrRtALrsAfioN

money esPeciallY for the

upliftment of the Poor, but it was t reaching the needy sdmc'

how. The governrtlent and the complain that the poor

people never aPProBch them and for the moneY earmarked

for them. Therefore, we ithe sttdY ) have come to your

village to make surg that the Poor needy like yourself, get

t whatever is rightfullyfrom the banks and the gov

meant for Your betterment.l'confirmation that whatResponse: Silent aPProval' or

the team was doin$ was indeed nhis opinion, whatever web) Asking the incumbent, if in

have been doing, such as minimisilt the cost both in terms of. time and money sPbnt in visiting

ments and financial institutions forout the possibility of bribes (which

government depart-

btaining a loan; and ruling

hURAL

took the form of. tikhai.padhai-ka-palsa-clerk's fee f reading and writing), was

the right thing to do from the Poin of view of the Poor like

him.Response: Verbal approval thalt wbat the team was doing

was the right thing to do.

c) Asking the incumbent the type of assistance which in his

opinion could makb him earn more firom the craft he knew so

well, and thereby improve his persrofral income and standard ofliving.

Response: Timely monetary assistance for the purchase ofenough raw material when it w4s available cheapest in the

neighbourhood.d) Asking the incunrbent if he had any reservations if the

same assistance was provided to hiin through the efforts ofthestudy team.

' Response: None, if everybody else in his group accepted the

assistance.e) Asking as to why he would hot be the first to do it from

amongst his group.Response: He could not acceflt until and unless others

accePted.f) Asking if everybody else in fris group waited for some-

body else to make a beginning, norle of them might get aryjthing; would that $e advisable,

Respowet.He $ouldn't helP itlthat would be a consenous.

ACTION PIIASE 9T

g) Asking the incumbent to let his name be enlisted onlytemporarily, so that it could be included later on rvhen othbrs

of his group accepted the offer of assistance'

Response: Let others of his group get themselves . bnlisted

frst,h) Since the incumbent refused to cooperate on grounds

that he would get enlisted only after the group's spokesman

and/or other members of the group did likewise, he was asked

if in his opinion the group or its leader could obtain for him

the kind of facilities being provided through the project.

Response: Nil., i) If 'Yes', why it has not been done so far?

Response: Nil.j) If 'No' then whY would he

through the Project?Response: Nil.

Tnlno VIstrHaving apprised the villagers ofthe project objectives and

the types of assistance the team could help them obtain from

the government and the flnancial institutions, we paid a third

visit within a couple of days. The Industries Extension Officer,

whenever available, was requested to accompany the team;

the assistance of the village level worker or the Panchayat

Secretary was not sought as it was felt unnecessary during such

visits.During these visits the villagers were approached in groups

where possible and individually where necessary, but more often

the former. In most of the bigger villages two to three meetings

separately for individual groups of artisans (potters, basket-

makers, weavers, moonj-ban workers, etc.) were held. But in the

smaller villages all the people were asked to assemble at one

place.One of the team members would once again explain the pro.

ject objectives in detail and then depending upon the particular

interest of the group/individual concerned, apprise them of the

new innovations or possibilities of expansion for the existing

units; and about the types of industries which bad locationalpromise.

As stated earlier, in view of the lack of sqfroient technical.

not accept the assistance

94 RURAL INDUSTRIALISATTON

skills, a near absenoe of an entre al base. and the cons.

possible industries rfrainly to the arti and a very elenrentarylevel non-traditional industrial

The following are the lists of industries in

traints of a rather limited range ofrials and underdevefoped infrastructted marketing outlets--the team har

tional and non-traditional sectors,

the villages of Ramgarh block:

A) TneorrroNer SBcroni) Leather indubtry

ii) Potteryiii) Carpentryiv) Fibrc (Mooni,-ban) industryv) Handloom dyeing and printinvi) Blacksmithyvii) Basket making

y available raw mate-facilities including limi-

to restrict the choice of

to thethe tradi-

people in

viii)ix)x)

xi)xii)xiii)xiv)xv)

B)i)

,ii)ii;)iv)v)

vi)

Oil expelling (Telghani)SculptureWeavingDurry makingCarpet makingHand-made paperCottage match industryGur-khandsari industry

. NoN-rnn ottrohrlr, SscronPower ghaniSaw millFlour nillDal millIce candySoap factoryStone crushingLathe i

WeldingCompressorWoollen garmdntsReadymade . gafments

;vii)v|ll)I ix)

x)xi)

,xii)

ACTION PHASI 95

xiii) Candle makingxiv) Steel furniturexv) Auto servicing workshop

Besides apprising the villagers of the broad project profiles ofvarious types of units, particularly of such industries which hadimmediate potential in the village concerned, the study teamalso used to satisfy personal queries on specific issues. In thetraditional sector, the most frequently posed questions revolvedaround: (a) quantum of loan amount; (b) rate of interest; (c)number of instalments in which the amount was to be repaid;(d) if the interval between instalments could be adjusted accor-ding to their own convenience; and (e) whether they could get

an identical loan in the next season when the raw materialwould be available and also if sucha thing (periodical timelyloaning) could be continued year after year.

In the notr-traditional side, nearly all the persons whoshowed some interest in setting up a unit of their own, in-variably had some previous practical work experience in thetype of industry for which they were applying. Most often suchan experience used to be in the form of an earlier employmentin a neighbouring urban centre.

As a result, there was rarely a query on any technical as-pects of the industry of their choice. They were found to benormally aware of: (a) the type of machinery to be purchased;(b) the place to buy it from; (c) the type of motor and its horse-power etc. Thus on the non-traditional side as well, most sfthe queries revolved around: (a) the amount of loan; (b) the rate-

of interest; (c) mode of repayment; (d) subsidy a6ount; and (e)whether the amount of subsidy would be given before or afterthe purchase of machinery.

CorgrlcrrNc Scsrourno Clsrr/Low ClsrE AnrrseN GRoups*(SEcoND Vrslr)

Having failed to make any headway with these groups, theteam decided to let sorre tim€ pass before rnaking.the nextcontact with them. As a result, at lgast three weeks were allowed,to pass before they were approached again.

During the intervening period, we discussgd the problom ,

with the concerned Block Development Ofrcers, the AgricultureExtension Officers, the patwaris, sarpanches, and a number of

EG RURAL TNDUSTRIALISAfIoN

group leaders thsmselves. Even these discussions failed toprovide any cleaf guidelines to !o by. But, the consensus ineach of them was to let the matter test for some time till these

groups saw for themselves how their fellow villagers were bene-

fiting through the efforts of the teafn'

We however docided to make adother attempt using a diffe-

rent technique this time. Withorft any forewarning, the team

approached the salpanch of Sainth{li in the Ramgarh block inhis hbuse at about 5.30 a'm. and rdquested him to speak to the

rinoni-ban workers on its behalf. +{is immediate tdaction was

that jit was a shber waste of trying to convince thoseteam thought it couldpeople, but he r1/ould come if

he1p.

Reluctantly the sarpanch to accompany thd leam to.

the mooni-ban workers' hutments. ving reached, he called outloudly the narne of the community' elder and asked hirn to call

everyone else. In less than ten utes all the men-folk came

out' of their'hutd and huddled ound the cot spread for the

sarpanch,The sorpanbh started his speech without wasting any time

on preliminaries. What he spoke w[s very brief, to the point,

and very direct without anY pt to conceal a tinge ofcontempt and to an extent anger in his' voice. i We are repro'ducing below the few sentences {re spoke: :'These people (the

team) have come tb helP You.deliver it at Youf doorsteP'

padhai-ka-paisa (bribes given

dre giving loans. They willwilf also be spared likhai-

name of clerkls fee forreading and writing) in this i So accept whatever help

is being given b3y these PeoPle.come time and again"'

is type of chance doesn't

We could see that the sarpanch' brief nonologue had been

had a hushed.toned confc-eflective. The mertbers of the

rence for a few moments and then spokesman of the group

spoke on behalf of everyone : they wanted some time to

rsconsider the matter amolngst lves and would let their'.the next .morning.

When the team went lo Sainttold the 4oonj-ban workers wantbd

the next morning, it was

o se€ them. On rcaching

tbsre the,SroDp's loader alreadY.

dScisiop be known to the sarPanck

l5 men-folk .i jthe grouP forthe naines of seven of the

ACTION 8HAS6

Having succeeded in breaking the ice, the team decided totry out a similar strategy for the remaining groups as well. Butin this instance, it met with only partial success. Subsequent en-quiries revealed that resistance &mong other groups had beenfor a variety of reasons other tban the mere fear of the out-siders.

In the Ramgarh block the three villages in which the teamwas eventually successful are Chidwa, Milakpur and Alavado.In Milakpur the sarpanch's assurance to the basket-makingPunjabi settler community, worked exactly in the same manneras in the case of Sainthali. The team succeeded in enlisting lghouseholds wanting financial assistance to buy the raw materialfor making baskets.

Among the moonj-ban workers of Chidwa, the presence ofthe sarpanch did not have as much effect as the informationvolunteered by the team that their kinsmen of Sainthali villagehad also enlisted their names for financial assistancE. When afew names of the Sainthali moonj-ban workers were read out tothe group, it had an immediate effect in softening their attitudetowards the projeet. Even so, they declined to give away tbeirnames immediately and asked the learn to come two days laterso that they could first discuss the matter among thgmselves.

Obviously, they were not interested so mgch in discussingthe matter among themselves as in confirrning the facts fmmtheir Sainthali kinsmen.

The Alavada weavers who are copsidered gdept craftsmenin making the traditional Rajasthani prigri had reasons of. theirowo in refusing any outside assistance. Earlier the Soup hadbeen approached by the District Industries Centre wjth an offprof financial assistance subject to the condition that they woulddiversify and statt weaving cloth other-than the traditionalpugri. But since the group considered itself fully employed intheir present vocation they had declined the offer. The DIC onthe other hand had been adamant that since due to limitedDrarketing outlets for the traditional pugri, lhe we&vers were notbeing able to earn a decent living, they would tre sarictionedassistance only if they agreed to diversify.

The weavers of Alavada had refused to cooperate with thestudy team sirnply.on grounds that if they offered-to accept anyasEistanoe? they iyp$d again be asked to diversify. {hat was why

91

98 RURA' INDUSTRIALISATION

during all our prelvious attempts had either relused to listen

or remained non-oommittal. In present instance onlY when,

in the comPany of the and the Industries Extensionthey would not be 'forced'they themselves wanted to

Officer. the team assured th€m

to weave anythin$ other thanweave, did they agree to cooperat

of participation in the Pro-started contacting the wea-

vers individuallY; During such meetings the economic disad-

vantage of the traditional Pugri ving activity was exPlained

at length to each of these indivi Side-by-side the profita-

bility of diversifying into towels and bed-sheets, forinstance, was exPlained in detail' rer than asking the indivi-dual concerned to commitinto other kinds of cloth, the

right away for diversifyingwould simply show ail the

pros and cons of the oPtions and

thought for a few daYs and then r

the individual to give it aide whatever he thought was

best for him.Our in-depth Probes during lengthy informal sessions

revealed that their teservationsdiversifying into other types of cl

and hesitation with respect tobasically emanated from

two sources:i) On ttre pslchological the fear ofleaving a tradition

ancl deviating frQm the ancesfialii) On the eoonomic Plane, I fear arising from the uncer-

tainty the human mind feels bre treading on unchartedpaths.

The chamars bf Bamboli and hariians of botb Bamboliand Naugaon Presented a uni problem of their own. Boththese communities insisted that would only accept a loanfor running a 'temPo'.t No of persuasion or exhortationcould make a deht in their reextent ol being obstinate.

. They were adamant to theasked how so many tempos

could be sanctibned and w would the5, ply them ifl at alley would run it jointly andsanctioned-their response was:

share the profits even if onlYthem.

These groups were aware, as

one tempo was sanctioned to

Transport Authority revealed,later query from the Districtpermits were no longer being

tempos, as th€ full quota hadissued in the district for pl

ACTION PHASB 99

already been sanctioned and issued. Even in the forthcomingtwo to three years, the Transport Authority felt there was nopossibility of issuing fresh permits.

The moonj-ban workers of Oontwal, a cluster of about 20households on the periphery of the village, presented yet anothercase of extreme orthodoxy and granite obstinacy, As stated, thisgroup was lound to be the poorest from amongst all the groupsin the block pursuing an identical vocatioa.

After the success with the moonj-ban workers of Chidwa.whose attitude had been mellowed by a mere mention of theirSainthali brethren having agreed to cooperate, the team approa-ched the Oontwal group in high spirits and optimism. But thisstrategy did not work in the case of the .Chidwa group. Thespokesman ofthe group, Gopal, asserted that they came froman entirely different stock than the rest of the moonj-ban workersin the district, and they were not concerned in any way withthe others. In fact, he assured the team that th€y were theonly group of their type in the entire district-and their cus_toms; traditions and even the technique of making rope frommoonj \tas entirely differenl from all the others pursuing asimilar vocation in the neighbouring villages.

Apart from Gopal, there was another character in thisgroup-a 50-55-year old maulvi who assumed the role of thespokesman for the group along with Gopal. The maulvi used toteach the childrdn in the village mosque. His position wasunique, Not only was he pursuing an altogether differentvocation than the rest ofthe households he even came from adifferent religion. Yet he had his hut in the middle of thissettlement, and cornrlanded great respect from its members.

After all methods of persuasion had been exhausted. theteam decided to approach the maulvi and take his opinion. Hisresponse, though reve4ling, was one of the most surprisingexperienced during the courso of this project. His reply wasbrief: "Sir, these people afe stupid" (Saab yeh log to gadheftarn). (Although the entire group, inoluding Gopal, was presentwhen this statement was made, nobody objected.) "You cau tellthem a million times to do something, they will npt budge ifthey have decided not to. They are the descendants of MaharatraPratap and are amongst a handful of groups coming from fhatlinp rrybo abandoned their nomadic life'two generations ago qqd

roo

decided to sbttle down, Theirchanged. Therefofe, instead ofpeople, you bettef go to some

conviction that the government

defraud the pooF 'intentionally"Bahadurpur weavers in the

groups of moonj'b8t? artisans inwar.

charge frequentllr made bY the rcluster of about 70 households P

birsinessman-showed the least ithe progranime. I He howevet serl

Hardly had we fioished, wto be an ex-wholesale Pagri

ft.unll rnnusthIALrSATIOll

s once made c&o never b€

any more time on these

can and indeed actuatlY does

Given here is the case of theblock, and of manY

Kishangarh and Manda-

found to be the most vocalhich they alleged, cheated the

schemes. This is a seriouspoor. In BahadurPur, a

had in mind. As usual the

for collecting initial infor'recently elected sar Panch-a

erest in us and even lesser rnfor the leader of the weavers.

Singh, a JJ-year old, short-

This small spdech was made the maulvi in the Presenceobjected or spoke a word.

the team members contactedof everyone concerned, but n

ImmediatelY after this meett

at least five members including the leader of the grouP'

The team then decided tobut without aclr,ieving anY resul

quit and leave the moonj-ban qf Oontwal alone.rological reasons, such aflBesides illitedacy and socio:

attitude of the Pdorer commun emanates from a reaction to

whatever interac,tion flany ofso called 'change agents' in the

may have had with tbe. During the course of this

project, a verY lange Pefcentage ( the scheduled/backward caste

communities cottected were f d to have develoPed a firm

ing a weaver's Yocation was

the main target group the tPanchayat Bhawan was

mation about those artisans.

rathet well-ofl village PhYsioi -big agriculturist-cum-

In less than ten minutes, Mstatured man 6lad in a dhoti and oollen coat' arrived: Taking

leave of the'sarlanch the te*st for the weaver settlement'

in the comPan! 'of Man Sing

the visit was exPlained in . deiaiOn the way, the purPose ofHe gave a patient hearing"

is indeed very noble work Sir:occasionally intdfjecting with: "Iwe destitutes are.alwaYs at the of, kind people like you."

Man Singh, who turned outfor the village, owner of

ACTION 'FfiASE

ll bighas of irrigated land and a pucca hoase, and the fatherof an Industries Extension Officsr in the neighbouring block(Lachmangarh) came up with : "It is all very well to do socialwelfare work, but it wilt be 'better' if you go away from us andtry in soms other . village." When asked why, he narrated the

follorving episode : In the wake of the 20-point programme,

twelve of his kinsm:n including himself were persuaded to dis-card the pit-type looms and were supplied with large-sized fly-shuttled (iron) handlooms by the Khadi and' Village IndustriesBoard (KVIB) with the apsuraoce that half the cost of the

handloom would be. subsidised and that the government wouldensure both, supply of raw materials at feasonable rates as wellas'the pirrchase of .the firaished goods by.paying the artisans

spot cash for their produce. Howeler, the KVIB could supplythem with only . two . iustalments ,of yarn and was . forced toshelve the scheme as it was found to be.uneconomical and

thsrefore unviable.. Since the looms rvere big and each required

a minimum of forty kilogrames of yarn to be operational

which the weavers could ill-afford, the machines had been lyingunused ever since.

Since the 'government' ,backpd out of 'the commitment', the

weavers refused to pay back the money to the concerned bank(Stste Bailk of Bikaner and Jaipur of Kishangarhbas) both

because they were neither 'willing nor in a position to repay.

The bauk having waited fot more than five years finally sued

the group. The people wgre angty at the government's high-

handedness, and therefore could not.be persuaded to accept any

loans or assistance in any form from anyone. The team was

therefore advised that it would be better for them to go back

undor sueh circurnstances. Howover.when the team p€fsisted, ManSingh led the way to the wepver settlement*a cluster of about

50 households on the periphery of the village.At the entrance to the $lum, were a handful of idlers bask-

ing in the afternoon ssn. For a beginning, it was decided

to concenfate on this group, and to call the rest later on, ifsuccessful. Hardly had the researcher explained the objective ofthe visit, that one ofthe squatters began cursing the govern-

ment for the earlier episode. He repeated whatever had been

aamated by Man Singh earlier, about'the govenrment 'tricking'thdir people.into accE)ting the sqhem€, and bow they had now

l0l

_i_

i0,

been sued for no fault of theirs.Meanwhile twb women, one df

the other abottt 22 years old withher waist, also jolned the groupside of the face arld their backs tcd the younger wbman startedshe was asked to stop by some ofthe visitors wero not concerned

angry woman whose husband was

and recently suedl in the court of lnued with her di{tribe retorting tgarbs and shapes but are

baatein kar pate rlrein ghus topikay galay pay chhuri" (they lure.sweet talk and thbn Put a knifeever silenced by a young man

few pucca houses that could be

angry womau inslde the house.By this time d ctowd of about

had gathered around us. One ofnot to waste our time as well as

It was then that our researcher

his persuasive. p$rver : "Byour people in thlis village are an1

persuaded some df you to aocept

out of its commitlment, and theof law for no fahrlt ofl yours. I

ourselves, we ate here neitherrgpresentatives of the governmenresearch organisation. Therefiany handlooms to distribute amvisit is only to have an exchange

This soeech hbd the desired e

in their resistance. One of thepointed out that our vehicle (motBesides, a couple of otheralso broke out : 1'If they say theyfrom the governrhent, then thereto what they have to saY." In the

husband of the angry young

AURAL INDUStRIALISATIoN

m about 50 years old andone-year old child clinging toth their pallavs covering one

us. As soon as they arriv-ing us vociferously. Though

kinsmen on the plea thatwith the KVIB eoisode. thE

one of the KVIB loanees

, refused to listen and conti-"these people" come in all

all the same. " Meethi-meethiajaaven, phir dhar detn garib

innocent people with theirtheir throat). She was how-

came out from one of thearound, and dragged the

older woman followed.

-half of them children-elderly persons advised us

irs and to leave them alone.one last attemot with all

we have learnt that all ofwith the government which

the loans and later backedhas sued vou in the court

y be you are right. As fo1as agents of the bank nor as

We are from a Delhi-basedwe have neither loans nor

you. The purpose of thisideas on your problems."

as cracks began to appearhigh-school going boys also-cycle) bore a Delhi number.from amongst the gathering

neither from the bank norno harm in at least listeningmeanwhile we could see the

coming out of his hut

AETION FHASE 103

silently, somewhat apologetically and joining the group.Finding their attitudes softening and mellowing down, one

of the researchers then $tarted : "The government and thebanks (in Rajasthan) claim at the end of every year that much ofthe money reserved for the upliftment of the poor artisans remainsunutilised. Artisans everywhere claim that they cannot increaseproductivity and incomes due to shortage of funds to buythe raw materials. The only objective of our visit to this villageis to find where the fault lies-with the government, thebanks, or the people themselves. The money in the banksor with the government is the people's-your money. Thepurpose of opening a bank in your village is also to ensurethat poor artisans like you could benefit from it. If only youwould agree to have a frank discussion with us on all yourproblems then may be we could help in making the bank'sservices more readily available."

This short speech led the villagers to ask the project teamto visit them later in the evening when most of the weaverswho had gone out to fields and other places of work wouldalso be around. Just when the team was about to leave a ten-year old girl volunteered that there were two other weaversettlements at the other end of the village. When we tried tomake further enquiries about these settlements from Man Singh,he shooed away the little girl and assured the team that thoughpeople in those settlements also belonged to the same caste,they were no longer in the prolession and were dependent onagricultural labour work and other vocations.

Nevertheless, we decided to visit these groups as well. Onreaching there we found the two settlenents quite close to eachother and to our surprise all twenty-one households except on€were engaged in the weaving profession. When the people fromboth the hamlets were called for an assembly, we were given analtogether different version of the KVIB handlooms episode. Wewere informed that out of the total twelve handlooms, as ftanyag eleven had been allotted to Man Singh's group, and that it wasMan Singh who had insiigated the recipients not to repay thebank on the pretext that ihe government had failed to fufil itscommitment of supplying the yarn. We were also informedthat whenever an individual, under fear oflegal action in res-ponse to the bank's notic€s (both verbal and written) tried to

104

repay the loan Atnount, hc was

his cronies with social boycottgfortps complaindd that 'mosf ext

ment officials raxeiy approached

Singh's settlement. Together, the

of seVen weavers lwho wanted finlThe meeting ih the evening fi

'in Man Singh's house' He along

Ofhcer son, gave an unexPeotedlY

built and freshlY Painted Pacca

meats immediatelY on ouryoung boys were $ent out to call

meeting.[n less than tetl minutes ore

front of the hsusd. When oEe ofdesire to explain tihe objectives ofSingh assr.ir€d "us tlhat he had alrea

fully explained thb PurPose of our

the pieliminaries 4nd get down tocants. I{e volunteered his own

of an unemPloyed Postgfaduatepagri 1rradrng and notforward otit of a group of nearlypersuasion bY the team

Ofrcer *nd Man $ingh himself

resolve. !

Later enguiries fromed that Mirn Singh had

transpired between the Projectdher two weaver settlements

own people to re ain awaY frornr

the postgraduate boY who voluntetold it was onlY fdr aPPearance sal

to withdraw in due course. Allwhich contacts uiere established,

necessary and clusters of artisang

any fruit.'. The mootj-ban trade (rnaking

lv availablO local reed moonj),

practised bY lower'l-caste in the entire north-nort&-

different

RURAL INDUSTRIALISATON

by Man Singh anddire consequences. Both the

workers and big goYern-

arrd visited only Mangroups volunteered a list

assistance.obvious reasons, took place

his Industries Extensionwarm welcome in his newlv

and served tea aRd sweet-

f6rtv men assembled inour researchers expressed a

project to the group, Manspoken to'each of them andit and that we could avoidtask of enlisting the appli,

first, fol.lowed by the narnewho wanted assistance for

But no other person camepersons. Every type of

the Industries Extensionto make a dent in their

ources in the village reveal-learnt everything that had

and the members of thein retaliation instructed hrs

team. As for himself andhis name, the group was

and that they too intendedour subsequent visits during

th with individuals wherehere possible, failed to bear

rope ban from an abuddantalready reported, is widely

AC?ION ?EASB TO5

eastern region. For years the industries department has been

trying to persuade these artisans to adopt the mooniban machine

.developed by the Khadi md Village Industries Commission'

.which is claimed to more than double the output of an average

crafisman. For a variety of reasons, moonj'ban workers all over

the district have rejected the machine, in spite of all kinds ofincentives offered and demonstrations arranged by the Khadi

and Village Industries Board.The local District Industries Centre, however, claims to have

distributed at least 400 of such machines uniCer a package pro-gramme of a total loan of Rs. 1,200 of wbich the cost of the'machine is Rs, 400, while the rernaining Rs. 800 is provided

for workin_g caPital'During a period of nearly two years of extensive field work

in the villages of this region our project team did not come

acrosr even a single mooni'ban mzchine which was operational' Indeed during the first stage, implementation of the action

programme in Raqgarh block, the team had also developed aprogramme of financial assistance to mooni1rbaz workers under

which the sanction of loans was made conditional to the acc€p-

tance of a moonj-ban machine, and met with hundred lrr cent

failure.. As a result the team was forced to delink the moanj'

ban.machine component of the assistance package.

Our investigations in the field from the recipients of the

KVIB loan revealed that in more than eighty per cent of the

eases the artisans had not been informed that the Rs. 1,200

&ssistance package also included Rs. 400 worth of a moonj-ban

machine for which .they ihad no use. It. was only at the laststage of actual disbursement of the assistance that they realised

that in accepting the KVIB loan they had inadvertently .pur-

chased the machine as well.

Though well-intended, the result of such shrewd tacticsadopted by some of the extension workers rflas that whole groups

of mooniban workers in.tho district have been alienated andthey accuse the governm€nt of having rvilfully cheated them.As could well be expected, they left the. machines untouched

4nd haq no intention to pay the price for somethi.ng they 'sou16not use.

Our discussions with the extension workers responsible fortnplemgnting this perticular ,echenre in the,three blocks elitited

RURAL rNDUSfRlALrSAltoN

a) When stridt insttuctionsthe higher level to atta;n certain

handed down to them fromtargets in a fixed period,

being the active Arms of thethey are forced to device their

at the field level,strategies to meet the goal;

non-compliance or non-achi of the set targets being astigma.on their efrciency and a on their career; and

proving the lot of the poor)b) If the end objective (i.e. iis noble and the people iannotignorance and illilteracy, thdn ,

part'of the governscent is justified.More respondtints were found

in the latter. However, typical ofare the comments Of a particularIndustries Supervilor reputed toboys of the department: Sahabkay karyon main ypdi thoda-bahutto katrana nahin chahiya (Sir, thisdevelopment work, if necessary,little bit of force).

Implied in the dbove statementfying the means. But we mustmotivation and invblvement as inan exception that a rule thoughtension workers too whose actionsthe same though they were not asusual refrain in sudh cases beingare so ignorant that they do notthem, then it is obligatory for the'see'.

this out of sheera little machination on the

the former category thanlatter respons€ category

year old Khadi andYillageone of the most brilliant

vikas karya hai. Vikaska prayog bhi karna padaydevelopment work, and in

should not hesitate to use a

a suggestion of ends justi-that such a high level ofabove instance is more ofdid come, across other ex-'implication amounted to

ocal or explicit. The mosrt if the people themselves

what is good forgovernment to make them

Founrn VrstrNormally withiir three to five s of the last visit the tearir

used to reach the village on the a day and time. Suchvisits mainly comprised the villagers in clusterswhere possible (in the case ofpursuing the same vocation, for

groups from a village) and individually where

necessary (as in the case oftraditional industriles).

ve entrepreneurs for non_

. At these meetin$s besides g data on the basic sooio-

ACridN Pil^Sb l0?

economic characteristics of the person concerned, the level ofskills and capabilities of the incumbent to run the project effi-

ciently and the economic viability of the project in the given set

of circumstances was also assessed before taking dortn theirnames for financial assistance.

As a result of intensive field work carried out during Octobdr

1980 to January 1981 in the Ramgarh block, and from June

l98l to May 1982 in the Kishangarh and Mandawar blocks, a

a total of 314 prospective entrepreneurs were identified whowanted financial assistance either for setting up a new industrial

unit or for the expansion of an existing one. Of these, 268

applicants. i.e., more than 85 per cent opted for a traditionalindustry while the remaining 46 entrepreneurs, that is, nearly l5per cent fell in the non-traditional sector. Block-wise break-upof these possible programme recipients, by typg ,of industryopted is shown in Table 4.

Table 4, List of entrepienafis lilentifted for Snoncial sssisttice

Sr. Type of industrY

No.Prosryctiee entrepreneursidentified Total

in blotk@

A. Traditional Sector

|' Carpentry2, BlacksmithY3. Moonj-ban4. Basket making5. Durry making6. W€aving7, Shoe making8. Sculpture9. Sirki making10. PotterY

. Total

B. Non-traditional Sectort. Lathe, welding and

23

687

26li

.,4

60.29

6

63

18 2926l-r7 lt130

29,-:

J

l918

4I

.lI

277

4III

t

4.

6.

t:

1

;:

ro2

compr€ssorSaw millFlour millOil millDal millIc€ c4pdyLims kiln

I

108 RURAL INDU$TRTALISAtION

T4ble dTWn of industty PersWcti\e enlreprcneursidentiied Total

ly'o.

)

I

:

.'

I

I

I

8. Stone crusher i

9. Electricalsrvitchds.10. Soap factory11. Candle making -r'

12. Plastic mouldi*B13. Auto works_hop l14. Kniuing pacli$

.

15, Sewing macbine -'16. Steel furniture17. ,R€Gtaurant l

18. Bbycle repairs

Tdtal' Grand Tdtal

II2I2

I314

An analysis of Table 4 shows the response in.the tradi-six times more than in thetional sdctor was tremendous;-j

non'traditional sectpr., Moreovey, the marginal responsethat was received 'for thO non.

than sixty per cent of the cases

onal sector was in more

. service industries like flour millcharacteristic featule that emerges

a very elementary level ofand sarv mills. Another

the break-up of pros-. pective beneficiaries as between brent blocks is that bothin the traditional as well as the .traditional sectors theresponse in the Ramgarh block much better when com-pared with Kishangarh or Manda . In the non-traditionalsector in particular, Ramgarh accot ted for more than 7l per

cent of the total aPplicants. in the traditional sector,were from this block alone, nearly 43 per cent of the

while together the other two blockb57 per cent of the total applicants.

for no more thanLower response levels from

Kishangarh and Mandawar blocksfollowing two reasons:

been due mainly to the

a) Chinges in both pro content as well as stra-Itegy of identifications in these afler the first stage irnple-r mentation of the action phase in the Ramgarh block; and

b) Relatively bbtter spread of,cially of banking industrY in the

facilities, espc-and Mandawar

ACTTON FHAS' IO9

blocks as a result of which people had greaier acceis to creditfacilities in comparison with their counterparts in Ramgarhblock.

Frrrn VrsrrThe next visit was normally made within two-to-ihree weeks

of the preceding one to re-check if any more people were interest-

ed in enlisting their names with the project team. The modas

operandi adopted most frequently during such visits comprisedapproaching the sar panch I village headman whenever available,

or individual or groups already identified for financial assistance

or technical training.These meetings were conducted in the manner of informal

friendly talks with the villagers. Questions were generally

asked if there had been dny change in the villagers' attitudetowards the project during the 15-20 days between the last visitand the present one. Also, if there had been any more persons

who had expressed a willingness to get enlisted with the team.

In respect of both the queries, the villagers' response was

found to be non-committali as if to say that what could they say

until something actually happened. In most of the villages visited,

the team was assured that there were already a few persons who

would like to avail of the financial assistance, but were waiting'

to see the outcome for those already enlisted. As a result, thcgeneral impression formed during these re-check vidits was dhat

although these people had willingly ]got themselves enlisted forfinancial assistairce or technical training'under the project,

some doubt and suspicion .invariably lingered at the back oftheir rninds.

Srxrn VrsnWlthin two or three days of the re-check visit the team would

bring a representative €ach of the appropdate l0fding agehcy

and the Industries Department to the doordtep bfthe prospec-

tive artisan entrepleneuls to discuss each case separately' The

accompanying official would make general bnquirids frohr the

appticants so as tb verify the credentials of each and assess "the

econornic viability of the project.' The applicants were' also

asked if they expected any problems in obtaihirig a "No Ducs'

certificate from various ledding agencies of tl€ area, so es to be

ll0

eligible to obtain a loan under the, As regards othef appliaants for

al sector. the team would advise tto disiuss their regpective projects

concerned agencieb so that financiindividually asc€rtbined. Duringwere also briefed about the formalitaining the desiredi assistance, and

come the difficulties faced, if any.

Teclrnical Skills Dqvelopment

those of the revepue and the instage, frequently also comprised tnvising the applicants and often even

RURAL INDUSTRIALISATION

on project.y units in the non-tradition-prospective entrepreneurs

ith the bank andior otherviability of each could be

meetings the villagerses to be completed for ob-

about the agencies/per-

es departments. Thisefing, encouraging and ad-

actually helping them over-

presupposes a steady flowquantities. This entails

brmation regarding man-iof the different types offacilities for training of

and to make up fornical personnel.skilled labourers to the

and one Industrial Train-shed in Alwar to train the

ical trades. The former.g, electrical engineer-

established in 1960 with

slnce.the polytechnic are done

last admission for theat 82.5 per cent aggregateThough the institute does

sons to be contacted in case they fa any problems in doing so.

t observation by the teamThe next step cqmprisedof all the actors inivolved-the afbank officials, and the govemm

ts, the village elite, thefunctionaries, particularly

power fesources, the correct apprlskills requireri and the provisionworkers both to increase theirdeficiency in particular branches of

With a v.iew to provide technic:loca! industry, one polytechnic collploca! industry, one polytechnic collp

ing Institute ITI have b:en estabhigh-school leaversj in various te<

which awards diplornas in civil en1

ing and mechanical engineering w

1966 which has rerqained the same

Admissions to yarious courses

Industrialisation in any given settinof labour of requisite skills in requthe collection and {issemination of

puroly on the basiq of merit, andl982rl983 session r{as reported tomarkg .ir1 the que.lifying exeminatior

an annuel student in-take of 225 didates, In view of mount-ing unemployment pmong the diploma-holders of the

brought down to 105 inpolyteclnic, the student in-take

ACTION PIIASE lll

not maintain any record of its outgoing graduates, no unemp-loyment is reported among them as more than 95 per cent ofthe successful boys are clairred to be absorbed imuediately invarious government . departments, mainly the State PublicWorks Department, and the State Electricity Board.

The diploma holders are reported to have a distinct prefer-

ence for government jobs and it is only as a second choice,(for instance, when faced rvith unemployment) that they optfor private industry. Surprisingly, the desire to set up one'sown industrial unit after graduating from the polytechnic isreported to be almost absent. Whatever little tenporary unem-ployment is faced, resulting in the taking up of jobs in the private

sector, is found to be largely amongst the diplonra holders ofmecbanical engineering because of insufficient openings forthem in the government departments.

In view of the lack of adequate employment opportunities inthe mechanical trade: the polytechnic has also tailored its recruit-ment policy to suit the local conditions. As a result, of thetotal 105 boys recruited each year, sixty are taken for civil engi-neering, thirty for electrical engineering and only fifteen for themechanical trade.

The Industrial Training Institute of Alwar enrolls 240 stu-dents every year in ten different trades: electrical, radio mecha-nic, fitter, wireman. turner, machinist, welder, carpenter, steno-grapher (English language), and motor mechanic, The quali-fying examination for all of these trades is of tbe eighth classexcept for the electrical and radio mechanics course for whichit i s matriculation and stenography for which it is higher secon-dary. Except for stenography, for which admissions are doneon merit basis (last admission for 1982-1983 session was doneat 58 per cent marks), it is on the first-come-first served basis iathe case of all other trades.

It is thus clear that theoretically the curriculum of the Indus-trial Training Institute has been so designed as to become aneffective instrument for imparting technical skills to the lite.rate and semi-literate youth of the district, and thereby serveas a feeder institution of skilled workers to the local industry.In practice however, this has not been found to be happening.Unemployment and resultant frustration are widespread amongthe diploma-holders of ttre institute.

TI2 RURAL INDUSTRIALT3AIION

As stated earller, in vie* of a dear absence of entrepreneu'

rial and technical skills in the villages of Ramgarh block, we

had decided to start a parallel p{ogramme of technical skills

developrnent along with industries development. As such, along

with enlisting tho villagers to tale up industrial ventures, the

team also encouraged and motiv4ted literate and semiliterate

unemployed young boys and girls to learn some technical skillso as to become bredd earnerg in due course.

But the task of enlisting the vi[hge youth for various train'ing programmes proved to. be mdst hazardous and the team

haC to use all its persuasive powEr to motivate them' In each

of'the villages ths young boys rri.anted an assurdnce that the

team would get them some employment after the training was

tfiat mere trainin! was of no , if it did not carry with it an, into a job, Finally, whe4guarentee of immediate

the team did succeed in Pers some boys to get enlisted

for cartain traini4g 'pro!f,a me$ motor winding, pumpset

repairs and house wiringr'the came up with anotherebjection when told that the tearn made arrangements withthe Alwar ITI for conductinghave nothing to do with anY

pfogramfnes. They wouldprogramm€ conduptdd

by the local ITI:Inquiries from the ITl-trained boys and others in the villa-

proved to be ofno practicalbeen lured by the stipend of

ges revealed that ithe traininguse in most cases. The boys had

Rs. 80 per month offered bY the , but the training was neverconducted seriously. As a result boys had.ndt learnt any-

which could bave beenthing, and simplyf wasted their .timore fruitfully utilis€d. in the lds or on any other familyvocauon.

Under the circumsta,sce s, wo had to give ao assurance to.thc boys as als'o to their parents. though we could not giveany guarantee we would try to to conduct the trainingprotramme outside the local ITI. the literate ond semi-

over. The reason for such an attitride was found to be prevalent

among the youth as also their cldfrs because of the presence

of unemployed ITl:trained boJys in .lrlast of the larger

villages..These villagers had, over the l.years, come to firmly believe

literate youth, tho project team seught the participatioa of

ACTION ?HASB

lsuch persons in the rural ar€as who had neither any technicalskill nor any practical expei'ience of r.unning a particular indus-try, but were otherwise desirous of setting up a new industr,ialventure aftrr taking the required training. But in both thecases only a limited range of specific technical ski s was offer-ed, which if learnt, cquld help the individual become a bread-earner in due course.

However, on account of the pathetically low levels of edu-cation throughout the region, the range of techuical courses

which could be offered to the rural aspirants, had to ba restria-ted to a rather rudimentary level. The following is the list ofvarious vocational training/skill upgradation courses offeredunder the project:

(i) Tractor mechanics(ii) Motor winding(iii) Pump-set repairs(iv) Auto mechanic(v) House wiring(vi) Tailoring(vii) Lathe machine(viii) Carpet. weaving

(ix) Blanket weaving(x) PotterY glazing(xi) Leather goods and shoe makingField wort in identification of rural youth for vari6us train-

ing programmes was carried out side-by-side with the identi-fication of prospective entrepreneurs. Village-wise break-up ofsuch persons by the type of traioing requirod is given separately

for each of the blocks in Table 5.

It can be seen from Table 5 that of the total 199 young per-

sons who expressed a willingness to learn some techilical trade,nearly 44 per cent were from the Ramgarh block alone, about

38 per cent from Kishangarh, while only 18 per cent fromMandawar. Such a wide variation in the response levels fromthe three blocks, as already explained, has been due mainly tothe successive changes brought about in both the coYerage atrdcontent of the technical training package ofered to the youth

in the latter two blocks. Evep in the case of Ramgarh, if tailor-ing, which elicited maximum re sponse (nearly 53 per c8tr1. ofthe total 87 hopefuls), is excluded, then the response for all

rt3

Eg€€

P*

R!.^-.s

$e.s*s

$'s

.:

&{".s? .::r

rx

$€

dt.,E'i

E$t"E N

Di*

rfim€@tdt Fr Fi

rtlltlltttttrl

lll*lll

root llolllllFl

-tlllll

I rat Ol \a @ Ili

t*llll

rllllll-,llllll

l\o-.N l$ I

c =.- E.o?R6.-ttHEE:€:T<EiUQMZ.j .i.'i + vi \d

RURAL INDUSTRIALISATION

Fq

I

6rnSr^t.a

I l{ur('|C.lllc{ri

F

€

$

I

I

I

I

I

tllttl

tttttl

tllttl

lllttl

ttrltl

lrrttlltttll'-.N I I I I

tllltl

d.r I INH

I

oo

E?::F ,s! c F

.- iF :8, bE H"e -4 E rE.?'+j :;'='= ri?ia-9 qi: ii ai'd-i!- g.d9;;.59

,r'11 F. AF1 V'

qj i .i o,i..i +,.i.d

ACrtoN PHASE

o\vlaolr{.ic.to\s

6r.!- lif iNo\-

ttttrrttl

lrlllttll

tllllttll

tltllttlN

ttlllttll

trlttttrl

tll-rttll

ttlllttll

ltlllttll

lrl-rttr-

.rE o

Ss$=€Fsu=gl,F Ol .n $..r \9 l.F9\

o\o\

ct\

t-

N

I

I

I

N

I

I

I

N

F

I

t{

F

ll5

r16 RURAL INDTJsTRIALISITION

, works out to a mere 41other training categories Putcandidates.

Similarly, an overwhelming of more than 85 Per

cent of the total number of i cations (112) was received

from the remaining two blocks r a specific technical trade-Such a pattern of responseto the miserably poor levels

leather goods amd shoe

has to a verY l4rge extent be

of education in the entire n region of Alwar

district. Since the minimum onal level prescribed in

the case of these trades, .and leather-goods and shoe

making, was very low-bare with the ability to count

or mere primarY education than 7l oer cent of the total

199 possible reoiPients of techni training identified from the

three blocks under the 'action h' project, opted for them.

But in the case of most othermum educational level required

however. since the mini-of the incumbents was at least

matriculation, the totalgories of technical trade

for tbe remaining eight cate-

out to a merc 28.6 per cent.

of the prospective entrepre-sector was sufficiently high,

Another factor which could not lost sight of was the relative

ignorance of the prospectivepotential of these trades.

about the employment

NOTES AND

t. In Kishangarh and M blocks only in such cases

where the level of motineur in the non-traditiand esserrtial prelimi , such as acquisition of land,application for el connection, and obtaining ofquotation lists etc., had been done, did the projectteam enlist a prospective for financial assis-

tance.2. The terry?s 'subsidy' and capital' were simplified for

the villagets as 'concessi from the Government' (Sarkar'machinery and implements'

ively,J. In a good number of villages 4 per cent interest was

readily translated and pd out by the villagers ab'fourRupees per hundred per nronth' (C&ar rupaya saiakata

g that in all the private money-

ki tar4J sey chhoot),(Machinery aur auzaar)

mahvari)i The reason

ACTION PHASE II7

lending business in the villages, interest is computed onmonthly basis only-the rate of interest varying from 18per cent to 30 per cent (Dedh rupaya sainkara ot Adhairupaya sainkara when translated in the local language).With the result while the people could not rule out 48 percent chaar rupaya sainkara mahavari completely frorn therealm of possibility, their initial reaction was that of shockand bewilderment. So, in all the villages visited subse-guently, the team used to compute the monthly rate of inte-rest. Four per cent rate of interest under the DifferentialRate of Interest (DRD Scheme for instance, was translatedas '33 paise per hundred per month' (33 paise sainkara

. mahavari).4. Throughout the course of our field work, the expressions-

"you people" or "you villagers" were never used. Instead,the expressions,. "we people" and "we in the villages"were employed by our field activists.

5. The reason for such a belief being that in the recent past(1978-80), the Small Farmer Development Agency (SFDA)had sanctioned and disbursed b great deal of loans forpurchase of buffaloes under the Integrated Rural Develop-ment and Antyodaya Schemes of the State Government.

6. Information as to how many persons had actually passed

the standard claimed to have been attained by them could' not be obtained in most oases. In their version anyonewho had reached eighth standard, meant he had attainedit.

7. Nearly 95 per cent of the chamars in Ramgarh blockhave lbft their traditional vocation--'shoe making' forgood. Families still pursuing this vocation are sociallyboycotted by those who have abandoned it and marriagesbetween the two are also strictly prohibited.

l_-

Cnnrrnn 6

Financing Rural

beneficiaries, the governmentalA total of 513 possible ben,

were successfullv identified. ofper cent wanted financial assistanrtrial unit or fof the expansionthat is, about {0 per cent exptechnical skill. The steps taken 1

the desired benbfits to the twoeach of the three blocks underfollowing pages.

Industrial Develolment

ustries

nistrative procedure priorthe modus operandi of tbe

motivating and identi-this chapter deals

enance of the interventionand interaction between the

rural industrialisation-thecracy, and the banks.

from tbe three blocksm 314, that is, a little over 60for setting up a new indus-

of an existing one, while 199,a desire to learn some

the team to make availableof possible beneficiaries in

y, are given separately in the

Sector)

Of the total 314 bpplicants for f268 (85.34 per cebt) opted for tlThe village-wise, industry-wise h

of the three blocks is given in T

asslstance, as maDy astraditional sector industries.

-up of entrepreneurs in eachle l.

After the Ramgarh experience was initially decided that inKishangarh and Mandawar ks, only such villages which

ten artisans would be enlisted.be waived partially and fewer

could volunteer groups of eightHowever, this condition had to

Et)

e

edl{)

v,

cEg

ID

cl

IttFd,o!I

.-il

s)

Is

.3

$.:*E

$

E

a

i

E$ds

"i*

FINAI.ICING RURAL INDUSTRIES

o\

F.

\o

\Ort\c)O\!.-<l(.)Hata{s

- fla

rtttttttttl

t|tlrltlll

tttRlllrlll

t-.ltilltlll

s'' l I | | I | | | |

l-lttlltllt

tllltl:lll$

llsll-tll"'il

tlll-lll-ll

t--t-,lt-tli

.s.

$EE$*sseeEHs Sg$'E<-: c.idi { vi \d r.:.d oig j tri -i dd -f

nl

;l

119'

3Ng3

rrtllttt

trll

ll*l

.. | |

tlll

ttll

I too(nII

il^l

-lll

@

t':

o

t

120

or

N

\o

*Nooo,-rl-11

il

(\.,i

I

ol,

I

I

I

6l

lllll

INIII

lllll

I loog\Htl

lllll

tltll

lllll

-llll

lllll

'llll

a.t

Fcl

,rl.

dLES&i*CO.!z-7/\b a- od

i.o

rl)

u)

oi

NURA', TNb{JSTRIALISATION.

N

cl

al

c{

N

F

\o

at

F

ttl

ttl

trl

-lr

ttl

lll

lll

tll

tll

l'i

s9t5=A o*:F:

EggfElggEvi \dF oj ol g

=:l I

$es g(} .i.ei-.i.

HNANCII$C. RURAL,INDUSTRIES 1'I1

applicants had to be acceptod, in the case of all such villages inwhich the concerned branch of a commercial banking office

already had borrowers of the sdme trade. As a result of t[is,out of the totalz3 villages from which a positive response inthe two blocks was received,, ten villages offered less, than the

minimurn prescribed number of artisans. Of the remaining 25

villages visited in these two blocks, a positive response was

received in no less than fourteen (78 per cent) of them but noparticipants could be enlisted because the number of possiblo

recipients could not meet the minimum prescribed, and the

banking offices of the area had not given any financial assistance

of this nature in these villages.An analysis of the data in Table I shows that the two trades

moonj-ban and shoe making accounted for more than 55 per

cent ofthe total number of identifications in the traditionalsector, while the share of all the remaining categories put toge-

ther worked out to a bare 45 per cent. Such a trend, has

obviously been due largely to the easy availability of both the

concerned raw materials, as well as the requisite skills for these

trades. One of the special features of the above data is thatwhile the moonj-ban artisans are more or less evenly spread over

the region comprising the three blocks, those of the leather trade

were forind mainly in the Kishangarh and Mandawar blocks.

It nray be interesting to note that although the population ofleather trade artisans (chamars) in the Ramgarh Block was

nearly equal to that in the latter two blocks, the majority ofthehouseholds in the former had abandoned this trade for good

because of the stigma attached to it. The movement had become

so strong that any of their members who did not leave theirancestral. profession were socially boycotted by the others.

Such a phenomenon was found in Kishangarh and Manda'war too, but not as well pronounced. But even in these blocksone did come acr.oss several clusters of chamars who had.leftshoe making and changed over to other economic activities.For instance, in most villages where these people. have discardedleather work, depending upon the financial status of the indivi'dual, tbey have diversifred into agricultural labour work, keepingdonkeys f,or rural transport or plying camel-oarts or tempos. Itwas interesting to note how this community had shown a distinctpreference for the different modes of rural transportation, and

financial assistance so that the govlittle land they possessed. As a

RURAL INDUSTRIALISATION

rmprovlng economlc statusindividuals gradu4ted frorn keepirlfinally to plying ar tempo.

donkeys to camel-cart and

Another chardcteristic feature that emerges is that, even

over-all response has beenfrom amongst the membersfor such a phenomenon, as

and ignorance, made worsedevelopmental interventionent. Even the best of our

and we could not com-pletely remove the fear and suspicidue to their conditioning over the

from the people's minds

The poorest and the illiterate- most of the artisan groupsin these blocks rlvere found to I

their doubts and suspicions as

being offered to thlem for nothingo

ost universally voicedfelt that if so nruch was

there had to be a 'catch'somewhere. We wbre also told in ite a few villages that someof the artisans suspected they were 'lured' into accepting

could grab whateverresult the task of motivating

and porsuading the poorerassistance proved fo be quite

es to accept any type of

Socio.economic Prgfile of Artisan

With a View to $ive a clear e of the constituents of ouruniverse from which we \ryere ing to identify and enlistpossible recipients bf the interventi n, it is important to have a

c characteristics. We are.broad idea of their socitherefore, giving in Table 2 the socio-economic profi lesof the artisans identified in the blocks.

A revierv of thq socio-economic cs of 268 artisanentrepreneurs identified under theblocks of Alwar district clearly

ject from three different

the north-northeagtern region wimplemented. It can be seen from

ghts the homogeneity ofthe present study was

able 2 that except for minorvariations in certain aspects, the were identical.

An analysis of the of the recipients of theof applicants (46 per cout)progf,amme suggests that the ma

FINANCING RIJT,AL INDUSTR1ES

Tsble 2. Socio-econooh profile of artisan eDarepleneurs(North.northeastern region)

t23

Sl. Particulars ofNo, artisan entre-

preneurs

Name of block TotallAwrageRamsarh xiChS4CSth Agntuyq! t"Lt&t4CltnN;m--% Num- Yo Num- % Number /"ber ber ber

7, IO

A. Asel. 25-35 yrs

2. 3650 yrs

3. 51{0 Yrs

B. Education1. Illiterate 57

2. Primary 26

3. Middle l04. Matriculate 09

5. Graduate

C. Size of FamilY(lverage per family)

l. Working 2.39

2. Non-working 3.85

D. La.nded Propertyl. Prcc4 house 14

2. Mud housc 68

3. Rented hut 20

E. Land (Irieated)l. 0Q, bighas 13

2. 3-5 bEhas I1. f.l0 Ughas

F, Land (Non-iniSated)l. G2 biehas ?22. 3-5 btehas 10

3. GlO bighas 2

C. Livestock1. 0-2 goats ' 19

2. 3-5 goats 2

3. 6 or moi€ goals I4. I cow/buffalo 25

5. 2 or more heads' of cattle 3

55.9 29 37.7 37

32.t 31 4A3 31

lt.8 t7 22.O 2l

4t.6 123 46.034.8 95 35.423.6 50 18.6

57

JJ

12

55.925.59.88.8

47 6r.026 33.8I 1.3

2 2.6

I 1.3

37 4r.636 40.413 14.6

3 3.4

l4t 52.6

88 32.824 9.0t4 5.2

| _ 0.4

t<J'r<t4,20 4,20

80 29.9rsz 56.7

36 13.4

32 22,48 5.6

l0 7.0

3.18 1.79

3.93 - 4.82

1.3.7 26 33.8

66i7 43 55.8

t9i6 8 10,4

27.r l0 21.3

2,L 7 14.9

7 14.9

Q 44.9

41 46.1

8 9.0

9 18.8

6,2

45.820.84,2

23

6

t9 q,44 8.5

8J

I40

38.0 44.02.0 1

50,0 16

'j2.4

39.0

47,9 64 44J14.6 2t t4.7r2-5 8 5.5

11.8 31 19.54.4 5 3.11.5 . 3 1.9

58.8 81 51.0

16 23.5 39 ?A.S6.0 20 48.8

tx53

5915

44u30I

tl

12

l3

1t.l

l7I

H,l..,

4,

hURAL'NDUSTRIAI"I$A{ION.

Table 2.r ( )

MOvableIlieycleTrs.nsistot radioWrisl watchAny other*N

Percentage cannod be worked out as

than one of th€se assets.of applicants hold more

included one hand-four handlooms, three sewing

and one diesel engine in

fell in tle 25-35 year age group, by the 36-50 year agegrixtp (35.4 per ccnt) and the 5l year age group (18.6 per

from where a large majo-cent). Except in tho case ofrity of fhe appliiantn (nearly 56 per ) belonged to the 25-35'yeat age group, the behaviour ofgroups is quite similar.

three blocks in other age

The. spread of eduoation amonga very low level. More than 52

communities is still at

came forward to

found to be illiterate. Of thecent of the artisans wer€g 48 per cent, nearly, 33

per cent were merely literate havingwrite their names. Out of a total

the ability to count andof 268 prospective

entrepreneurs identified under the only 14 applicants, or amere 5 per cent had completed high

It is nevertheless heartening tr find that even among the, poorest of communities comprisItions qf the society, the rate of

scheduled/low caste sec-is nearly, 48 per cent.

;Considering that these people g to the lowest strata ofsound rather high. Thisrrural society, 48 per cent literacy

can. perhaps be explained. with help of the following two

a) Out of 127 literates in the as many as 88, that is,rnearly 70 per cent had had no moschooling; and

than two to three years of,

, b) It is possible ihat only the'sons frbm amongst the artisanpartiiipdte in the prpgramme.

y more educated per-

Yet another explanatiqu that, since the spread of

hN*ttcttlc RURAL INDusTRIEs 125

education among the younger age'groqp (25-35 years) is relati-vely higher than in the other two groups and also because this

group is better represented (46 per cent of the total) in this

sample in comparison with the others, it had resulted jn a rath€r

inflated literacy rate for the artisan entrepreneurs included in the

sample.An riverage family in this sample of 268 artisan households

had five to eight members of which 2'52 were working while 4'20

were dependent or non-working. A, review of the data for indivi-

dual blocks suggests that the ratio of non-workers or dependent

members to the working members rvas highest in Mandawar and

the lowest in Kishangarh; This can perhaps be explained by the

fact that there were fewer Punjabi settlers in the form€r than the

other two :blocks. Although, a higher number of workers per

family was true of almost all lcjw-caste artisan groups' this trcfdwas found to be particularly pronounced in the case of most

villages with larger Punjabi populations' For instance, the

worker non-worker ratio for fbur predominantly Punjabi villages

in our sample-Alavada and Milakpur in Ramgarh block and

Bolni and Chamrauda in Kishangarh block works out to 3'99:

3.13 compared with 2.581 4.07 for all the remaining 16 villages

from these two blocks inoluded in the sample' We are in no

position to make any generalisations on the basis of the aboie

data alone, as it is equally true that the latter category ofartisans engage their lsnryear-olds in the family vocaiion too'

But the data do suggesi the possibility of a more widespread

existence of such a trend'Economically, the aftisan communities were found to be

among the poorest. Out of a total 268 applicants, 125 (nearly

4.7 per cent) were landless. As regards individual blocks; Ram-

garh with 54 landless artisan househo{ds (nearly 53 per cen)

topped the list, I followed by Mandawar (46 per cent) and

Kishtirlgarh (39 per cent). Of the rernaining 53.4 per cent house-

holtts Who held some [and, more than 87 per cent were small

and marginal farmets. As many as 67 per cent'of the total 143

landowner families had lbss than two bighas of land. Moreover,

more than 65 per cent of the total landholdings belonging to

the iitisan households identified under the project were unirr!gated,

Amorrg individual blocks, the Kishangarh and Mandawar

block. Similarly, 75 per cent ofof the same size fqll in the Manc

RURAL INDUSIRIALISATION

placed than their Ram-cent of all irrigated land-, fell in the Kishangarh

non-irrigated landholdingsblock.r

war. As against 76.40

As regards other possessions ofhad a mud house, 29.9 per cent

artisans, 56.7 per centhad a brick house, while the

remaining 13.4 pel cent did not have that and were livinghad the highest percentagerented buts (19.6 per cent)

in rented huts. The Ramgarhof mud houses (56.7 per cert) r

followed by Kishapgarh (55.8 per and 10.4 per cent) andMandawar (46.1 ppr cent and 90pacca houses too, Mandawar was

cent). In respect of owning

c€nt, as against 33.,8 per cent forper cent for Rarngprh.

uch ahead with nearly 45 pergarh and a mere 13.7

Dairy farming is one of the imlfor the agriculturists and artisans i

rtant subsidiary occupationsthis region, Of the total

268 recipients idenfified under thepreneurs, that is, more. than 50

as many as 159 entre-

description or the dther. In thir rrpoorly with both l{ish4ngarh and

cent had livestock of onetoo, Rangarh comp&res

per cent and,53.24 per cent li -owning artisan families inMandawar and Kishangarh resperper cent had any livestock. And

y, in Ramgarh only 49.01the three blocks were com-

pared by the type of livestock then the gap becomeseven wider. For instance, of the total 102 beneficiaries from

had only one or two goatsother two blocks were

per cent for Kishangarh.also stand out in respect

Table 2. As regards owningahead with 58.8 per cent

. artisans compared wjth 39 per cent Kishangarh and 50 percent for Ramgarh. r Similarly, in of owning two or more

families was way ahead of's puny 6 per cent.

-scale dairying was catch-a result of which even the

belonged to the lowestadopting it as a

FINANCING RURAL INDUSTRIBS I27

subsidiary occupation to supplement their extremely low incomesfrom their trades.

Among movable items of property, besides the tools andother equipment of the artisans, bicycle, transistor radio andwrist watch were the most commonly found. From amongthis group of 268 households, at least 128 bicycles, 53 transis-tor radios and 59 wrist watches were reported. More than 90per cett of the artisans possessing a wrist watch had a bicycleand a radio but more often it was the former, Thus an averageartisan's priority for movable property seemed to be a bicycle,a transistor and wrist watch in that . ordor. A bicycle, forthose who could afford it, was considered more of a necessitythan a luxury item. Other movable assets reported by thisgroup included five handlooms, frve diesel engines, tbree sewingmachines and two tongas.

It may be interesting to oote that more thalr half the radio-receiver sEts and wrist watghes, and nearly 20 per cent ofthebicycles owned by these groups were reported not to have beenbought by the present owners of these items. Sometimes volun-tarily and at other times on specific enquiries from the incum-bents, it was found that most often these items had been recei-ved as dowry. Especially among the chamars (shoe-makers),

even if one could afford to buy these items, if there was a mem-ber of marriageable age in the family they would wait for thedowry. Even bicycles were reported to be quite a common.item to be expected as dowry, but unlike the transistor radio orwrist watch, one did not always wait for the marriage, butbought it if the need arose and the necessary funds existed.

Industrial Development (Non-traditional Sector)

In this study the non-traditional sector was given as much, ifnotmore, attention as the traditional sector. But, due to factors al-ready explained in the preceding chapter, the team received rathera lukewarm response for the former as compared to the lattef,As against 268 prospective recipients in the traditional or arti.san sector, in the modern or non:traditional, there were only46 applicants.

Of these 46 applicants too, as many as

cent) of the recipients were from Ramgarh33 (nearly 72 peralone. The share

i

I

i__..__

r28

of the other two blocks workedof which eight of the entreprenethe remaining five from Mancthese entreprenerirs by type of iseparately for eadh of the three

ed rural middle dlass.'] More

RI.'RAL INDUSTRIALTSATTON

out to a trivial 13 recipicnts,were from Kishangarh and. Village-wise break-up of

opted for is being givenin Table 3.

suggests a fairly well-endow-three-fourths of the 'appli-

maximum number of entre-w-mill or a flour-mill, follow-

ed by applicantb for bicycle r units and weldins-sets.Most of the iildustries opted '

Gor-traditional. fbll in the serviceby the recipients, though

industry sector. The highestnumber of applicants-six, was

Ramgarh block fbllowed by Muthe village Alavada is

with five applicants,also in the same block and an number from Raibka inthe Kishangarh block.

Acceptance of newer and setting up of indtrs-tries requiring non-traditional was based, apart fromincreased profrtability, on relative advantages of non-traditionalindustries in respoct of yield, ti and labour. Reasons for

personal and environmen-rejeotion on the dther hand inclutal characteristics. Such factors expiained a great deal as towhy two persons in an identical p vslco-economrc envlronmentdiffered in their tbchnology on behaviour.

Table4eivesadetailed on of the imDortant socio-economic charactleristics of the -traditional sector entreDre-n€urs, so that thdy could later be compared with those of theircounterparts in the traditionalto be made on tllat basis.

and allow generalisations

The data oo the ic leatures of the entrepre-neurs in the non-traditional sect

cants were young and fall in the 35 years age group. Major-ity of the applicahts 193 per cent)number of illiterates (thrce in a

attended school, and theof 43 recipients) was

fairly low. Of fqfty literates, 40 per cent were school-drgp-outs with t$o to four years schooling; more than 25 per

standard and rnatriculatiorrgraduate candidate from the

cent each had pfssed theexaminations; and there was alsoRamgarh block.

Economically too, they were off compared to theirMore than 65 per centcountetparts in lhe tfaditional

Table 3 clearlY indicates thatpfeneurs wanted bssistance fof a

FTXA}IQ{NC &URAL INDUSTRIBS

loro,tr

tlrsolddoqs

-ryok otnY

N

a(

q

co

F-

\p

9\

G'

9ql

c)

FJ.E!

FI

ftol-tol doos

saqttlltrsIArUtzala

Jaqs-ru) auQts

wH awlI

(punp aI

l w tpo

ilrw uo

lw {olt

aSq ll\colq

\O N E r-r N a'l Fr |') .4 r+ * a.l

lltllltlrtrrlltlttlttllltttttlttltttlllllllllllrttltrlrtl-llltlttltllNlttllttrttl-ttttltrltt-ttlttlttlrtlt*lrrlttrt-'rltllll*-tl-llll*trtttlltltl*tltttlltllrllt-tllllll-'-.llltl-rl*l'*|_ll|**N|*t-* | I tr l* I l-^-tllt-llllll

iTI'I

I

c.t

c.

a.-

SH-F65iiHs=s !.8€€EEE$$'$5Egggssg;E g

?;Cuv,.i\eF.*"iE=d

t29

130

dt.)

3

o\

\\o

9\

N

\o

-{ N V'.

l"rlllltllnll

tllll-tlllllllllllllllllttllllllli r-rl

lrltll

tl

RURAL INDUSTRIALISATION

alI

I

I

I

I

I

I

l

I

I

I

I

I

I

I

:

I

I

I

l

I

I

I

I

I

I

a6

t13-: :ss*_ :*EEi = EXEZ& F6.i..i; O

a)E>1

a'2<E

FS

Oqn

trd

la.!A:<^!r

a

t?

oaqE3()

F.P .o

e€I o .iiIt o.ldalo{t= +

l= -l}l:

lEo

IFtslH .9

lg slF,-I

FINANCING RURAL INDUSTRTES r31

Table 4. Socio-economic proffle of the non_traditional sector entrepreneurs(North-northeastern Region)

Sl, Particuhrs of the _ Name of bbck foto| or"rogeNo. non-traditional @ i;;-tne r"gionsectorentrepre-@ ffi

ber berber

A) Aeel. 25-35 years2. 36-50 years

3. 51-60 years

B) EducationL lliterate2. Primary3. Middle'4, Matriculate5. Graduate

23 76.7 7 87.5

3 10.0 1 12.5

4 13.3

1 3.3 2 2s.O13 43.4 4 50.07 23.3 1 12.58 26.7 1 12.5I 3.3

3 7.O

17 39.53 60.00 11 25.62 40.00 t1 25.6

| 2.3

3 60.002 40.00

JJ

6IO. T

14.0

9.3

C) Size of family(Average per family)

l. Working 1.932. Non-working 6.05

D) Landed propertl

- J.OO

- L55

1l3

2,004.20

2.53 2.535.19 5.19

(i) Dwelling unitl. Puccahoase Zl 70.002. Mud house 9 30.003. Rented hut

(ii) Land (iryieated)l. 0-2 bighas 5 17.82. GlO btghas 5 17.83, ll bighas or morc 4 14.3

(iii) Land (non-b risak A

3 37.53 37.52 25.0

lr*

tri

4 80.0

I":I 20.0I 20.0

40.0

20.0

28 65.1

13 3o.22 4.7

7 17.96 15.48 20.5

1. 0-2 bighas2. 3-5 bighas3. 6-lO bighas

El Movable propertyl. Bicycle2. Transistor radio

4 t4,3) '7 ''8 28.6

6

lo

'2

I

l<,r

5.1t<.,

171l

)-

4.

tt2Table ,t'

Wrist watchAny other

1S

11 Dieselengine

LivestockG2 goats3-5 goats

6-10 goats

1 cow/bufralo ll 47.8

2 or more hejads

ficant to note that as many 3

had landholdiri gs of 1l bighas

44 per cent also enjoYed irrigal

RURAL INDUSTRIALISATION

ontd.)

7

5-25Diesel I Diesel 17

engine engine

Flour1

F)1.tJ.A

).

l18

t6

,"

<1 L

45.1

i_2 50.0

of cattle 12 52.2

ofthecandidatbs had a (brick and cement) house, and

more than 90 fer cent were ll wners. Of the 39 landown-

ing entrePreneqrs, 21, that is'

land while 18 applicants hadly 54 per cent had irrigatedn-irrigated land. It is signi-

18 entrepreneurs (46 Per cent)

2 28.6 2 50.0

above, of which more thanfacilities.

Dairying wa,s also one of important subsidiarY occupa-

tions of this grouP of reciPit

more than 8l Per cent) out ofand as many as 35 (that is,

total 43 had livestock of one

description or {he other. Ofcow or buffalo, while all the

had two or moie heads of ca

18 (51.4 per cent) had oneining households excePt one

Among other economic assets

owned bY this grouP of en there were 33 bicycles,14 diesel engines withl? transistor t'adios, 25 wrist

pump-sets, twd tlactors and flour-mill.Comparinglthe broad omic characteristics of this

entrepreneuts, one finds thatin more than one respect.

cent of the entrepreneurs intraditional sectot, there were

more than 76 der cent in the t

the number of illiterates was-traditional sector. SimilarlY,

much higher in the former(7 per cent). Though thp

family wal the same iu the two

filriANcrN6 RURAL rrtlDustans 133

groups, that of the dependent members was higher among thenon-traditional sector entfepreneurs.

A relatively better economic well-being of the applicants fortiny and small-scale units was also equally well reflected in theirowning both, immovable as well as movable items of property.It was possible that the actual number or quantity of such itemsmight be much higher than what was reported. For instance,in the case of artisans, quite a few of the respondents werereluctant to divulge their actual economic assets because of thefear that, if reported, they might later be asked to mortgagethem to the lending agency while sanctioning the loans. In th6case ofl entrepreneurs for tiny and small-soale industries manyof them considered wrist watches and bicycles to be too insigni-ficant to be reported as their economic assets, and merelvlaughed at such a suggestion.

Financing the Entrepreneurs (Traditionat Seetor)

The procedure for financing entrepfeneurs in the traditiondlsector is fairly simple and it oomprises the following stqrs priorto the actual disbursement ofassistance:

i) Filing of an application for a loan with the appropriatelending agency of the area;

ii) On-the-spot investigations and verification of the econo_mic viability ofthe project and of the credentials of the candi_date artisan by a representative each of the concerned bank andthe district Industries Departrnenq

iii) Preparation of a no-dues-certificate; andiv) Disbursement of assistance.The strategy adopted by the study team in respect of the8e

steps was greatly modified for the latter two blocks, namely,Kishangarh and Mandawar as it was felt that certain prejudicesin findings might have crept in during the implementation stagein Ramgarh. Accordingly, we shall first relate our Ramgarhexpefi€nce and then only go On to the other two blocks as perthe changed strategy.

FtNANcrNc oF RAMGARH AntseNsAll the field work prep4ratory to actually financing tte

enlisted entrepreneurs in Ramgarh having been completed by

r34

the last week of January 1981'

a general meeting of all the Pr<

taining the viabilitY of each

attended bY the DePutY ManagiManager, Delhi and other sem

India including the Chief Regio

cials of the Agricultural' at Ramgarh, th$ Joint Director

Alwar, the ext0nsion fagencies oPerating in the

team.3The represestatives of the

of the District Industries Centre

cants individually, to further

most frequentlY asked during

around the level of industrY

The idea being to make an

awareness abou[ the Projectand knowledge about various

marketing related ProblemsThis meeting served a two-fi

it resulted in the rejection offurnish satisfactory replies a

the other, it grPatlY enhanced

only in the eYes of those alread

of assistance or the other, but

sitting on the fonce on account

minds.

i) Filing Loan lPPlicationsMost of the doubtful

already been eliminated both

non-traditional sectors during

ject and to assess the caPability

see the Project tthrough its suc

very little was rlow required toloan application forms with the

f)eveloPment Branch (ADB)'

asked to aPProach the branch

t]

days, and file their resPective req ts of financial assistance.

RURAL INDUSfRIALISATION

project team decided to calllvo entreDreneurs lof ascer-

separately. The meeting was

Director. the Chief Generalofficials of the State Bank of

Manager from Jaipur, offi-ment Branch (ADB) of the SBIthe District Industries Centre.

ies of various developmentalblock and the CPR's study

tate Bank of India and thoseinterviewed each of the appli-ify the viability of each pro-

d capacity of each applicant tocompletion. The questions

interviews revolved mainlyific skills of the incumbent.

ment of the incumbent'srally, and of his understandingaspects of management and

purpose. On the one hand,rin applicants who could nottheir respective projects, on

credibility of the project notenlisted with us for one form

among those who had been

I some lingering doubts in their

of possible financing havingthe traditional as well as theRamgarh meeting, relatively

done in respect of filing theBank of India, Agriculture

All the hooefuls werethe SBI within the next three

FINANCING RTIRAL INDTJSTRIES 135

All work in this stage was completed within the prescribedtime limit. Basically, it comprised filling up the loan applica-tion forms separately for each candidate with the followinginformation:

a) Name and address of the incumbent;b) Type of industry proposed to be set up;c) Amount of financial assistance required;d) Asking if the applicant could obtain a no-dues certifi-

cate; and, e) Fixing an appointment with the villager for an on-the-'spot verification by the concerned agencies.

ii) On-the-Spot VerificationFrom February I, 1981, our field activists accompanied by

an official of the State Bank of India (ADB) Ramgarh, and theIndustries Extension Ofrcer, started visiting individually eachofthe applicants in the traditional sector in their respectivevillages for an on-the-spot verification by the Bank and theDistrict Industries Department. During these visits each of theprospective entrepreneurs was questioned by the accompanyingofficers from the point of ascertaining separately the viabilityof each project and the credentials of the applicant to execute it.

In this operation, at least eight of the remaining 9l appli-cations (eleven applications having already been eliminated as a

result of the preliminary interviews during the Ramgarh meet-

ing) were rejected as the concerned artisan entrepreneurs failedto furnish satisfactory replies to the queries made by the bank

ofrcial and the Industries Extension Officer.Thus, out of the 102 applicants originally identified, 83

applications were finally selected for financial assistance. How'ever, during the on-the-spot verifications another 33 artisans

and craftsmen came forward to enlist their names for financialassistance, who had been hesitant and even skeptical initially,both about the bona fides of the project team and the serious-

ness of the 'action' Programme.In this manner, a list of 116 artisan entrepreneurs selected

from 11 villages of Ramgarh block was prepared, who had

been encouraged and motivated by the project tea4 to start a

aew industrial venture or expand an existing one'

iv) Disbursement bf I'oanThe no-dues cdrtificate for each

RURAL INDUSTRIALISATIO({

iii) Preparation of No-duesThe next step, usually the tricky of all, from the point

to obtain a no-dues ertifi-of view 6f an aveiage villager, iscate from the Revenue and various banking andfunding agencies operating if, thE area. It is at this stage thal

by indifferent and frequen-the villagers are irfvariablytly unsoupulous bfrcials, in considerable wastc of

entrepreneurs.time and money for theThe initial experience of

artisan entreptenehrs who werethan 95 per cent4 ofthe 16

to approach the appro-priate agencies for obtaining the ues certificate could not be

any different even in this instance.government depaitment refused

utrless the usval likhai.padhai-ks

An oftcial of a oarticularget the certiffcatisn dofe

would be paid to him,6Since the artisanh in the instance had been strict$

turned with their respectirreadvised not to pay any bribos theytales of woe. Thd official in quest when first approached byone of the team rrtembers, flatly to acknowledge that hehad been approached by the entrepreneurs with a requestfor no-dues certifioates. Instead, offered to help as many ofthe artisans as Possible, in the desired certific&t€.'Within minutes off this, howover, a was conveyed by a

136

'third person to th4 concerned teatlquestion had giveil his assurance th

heartedly but at tbe same time he :

be given whatever was "his due".In order to overcome this

consultation with the State BankDistrict Industrieb Centre aud

developr-nent agemcies operating ina comprehensive list of all the

sector for no-dues certification, insindividualll'. Suchl a stratogy paid,job was finished in less than a

were obtained for all of the 116 I

members that the ofrcial inhe would cooperate whole-

expected that he should

our field activists. inIndia (ADB), Ramgarh, thc

ofrcials of various otherthe area, decided to prepare16 artisans in the traditional

of sending each of thernconsiderably as the entirck and rro-dues certificates

licants,

entrepreneurs in tle traditional seo

ing procedure Prior to Procuring

of the I l6 prospective artisanonce obtaiaed, the remai{.sanctioned loan amount

FIXANCINO t'URAL INDUSTRIES 131

for each was relatively simple' In consultation with the State

;;; "i India (ADB), Ramgarh, a time-table was

-prepared ar

to the numbet of applicants which the bank could handle com'

i.rtaUty each day' As a result, it was decided to send to the

lant IS-ZO applicants per day from a single village or from two

or more villages for obtaining the loan amount'-"''a;;;i;;as done, the field activists started anotber round

of iiu -uiff"g"s

and began seflding the entrepreneurs in batches

ii ri-io p"ii"v to the sBI (ADB) Ramgarh'. In this wav' all

ifr.-iou"t'fot thl applicants (116) in the traditional sector were

disbursed bY FebruarY 20' l98l'Financial assistance to all the 116 artisans (including 33

*r"r'oi on"tn.-spot financing) having been satisfactorily dlsbur-

rJ wtff in time, the team decided to reView the entire procoss

it *i"ri"g with the first contact meeting motivating the possiblE

;;;i;il; leading finallv to disbursement of loans) and take

-iJ "i,il.

causes and effects related to programme idtplehen-

tation.'---Wltn this objective in view the entire study team held a

,.rir.-of meetinis with the officials of all the concerned agen-

"i.r-gouatn*.ni as well as non-government'. During the course

oiit.i. ait"or.ions the district ofrcials including the Collector'

ii" J"it, Director (Industries), the Block Developrnent officer

;;;';. extension' functionaries, as also the representatives of

llr" "oo"rrn.d

bank from SBI (ADB) Ramealh, SBI Arvanagar'

if*"t *a also from the SBI Chief Regional Manager's Offioe

;;:;ilt, all highlighted two crucial variables of inte(ventioa

installation and management which could possibly have prejudi-

ced the project indings' These wete:- a) During the course of assisting the artisan. entlepleneurs

in cornpleting the necessary formalities for obtaining the assis-

it"*,- ift" tJam might unconsciously have overstepped the

iiooa, *tt.t" mere catalytic and observant presence ends and

u"tl* ""0 biased participation begins' This may have resulted

in a sort of deliberate spoon'feoding to the recipients' which was

never the intention of the project; and

b) The Ramgarh mBeting of January 1981' which was

conducted in the presenc€ of to-t of the senior-most officials

;;; fut Bank oi lrrdia, and of the district administretioa'

.ieit h;". t*ulted in biasing the opinions of both the eniplo'

i38 ,RURAL INDUSTRIALISATTON

yees of the SBI (r{DB) Ramgarh ho had to disburse the loansand the artisans who were to them. Thus, resulting onthe one hand jn 4n uncalled-for on the part of thebankers to implepent the prorating among tte recipients ancipate in the programme.

In view of these observations. t,in respect of the implementation

the beneficiaries, the bureainstitutions-interact in their

blocks, namely, Kiishangarh and war:a) That henceforth the field

act strictly as a participantfunction between the variousrural industrialisation I and

me, and on the other, gene-ostentatious fervour to parti_

in these discussions expressedion of the project findings.

crucial decisions were takenfor the rernaining two

of the project wouldwith incumbent liaison

involved in the process of

ocks, the study team wouldactors-financial

Since this was neither in nor could ordinarily bereplicated, most df the participantrtheir doubts abouf the wider appli

b) That in the remaining twomaintain a low profile throughout, ing the various

the banks andstyle.

FrlreNcrNc on KrstrreNcanq .aNo WAR ARTISANSField work in identification o prospective entrepreneurs

was completed and lists of appli s for financial assistancewere prepared .by Jlanuary 31, 19g2, in the case of Kishangarh,

of Mandawar. In all. 179and August 31, 1982, in thepossible recipients--85 (72 in thethe non-traditional sector) from

itional sector and eight ingarh and 94 (89 in the

sector) fromduring the

traditional sector and five in the traditionalManddwar-were delected for ial assistancesecond leg of project implenentati The strategy adopted by

guidelines discussed in thethe project team in terms ofprevious section comprised the follo g steps:

a) Apprised thd District In Centre (DIC), Alwar.the implementation of all

of the objectives andtation of the project, andpreneurs identified fromthe two blocks fot financial assi

which is the overbll authoritv findustrial schemes within the disrstrategy of the secotrd stage implem,submitted the lists 4f prospective en

banks.by different commercial

FINANCING RIJRAL TNDUSTRIES I39

b) With a view to establishing the credibility of the project

in the eyes of those who would be immediately responsible for

.uortio"i"g and disbursing the loans' the project. team was

i"t1"au."i to the villagers by the agency of the immediate

.ro.tiott of the concerned bank' In the case of the lead bank'

iiii-ir, ,rt" Punjab National Bank (PNB) it was accomplished

*l,tt ,tt. help of the lead bank officer located in Alwar; by a

r"*"Ui" officei from the Chief Regional Manager Office' Jaipur'

in ifl" ,ur. of the State Bank of Bikaner and Jaipur (SBBJ);

""J tt the Deputy Director (Bank Finance) located in the

;;r; InJuttriet Clntre (DIC) Alwar' in the case of all other

banks."*.'J'On successful implementation of step (b)' apprised the

concerned branch managers of various banks of the project

;j;;,t"". generally, and the number of artisans identified for

nouo"iut Jssistance from amongst the villages, faliing within

m" lt.u of operation of the concerned branch' particularly'

AccorAingty, separate lists of entrepreneurs showing the type of

inOtrtry ""a tn" loan requirement of each were submitted to the

concerned branches.

d) Filing of loan aPPlications'

e) On-the-sPot verifications'

f) Preparation of no-dues certificates'

g) Disbursement of loans'

Foifo*ioe the guidelines finalised after the Rbmgarh phase'

,t"'J. oi"rf,. lroject't field cootingent comprised largely of

n:.i , i*,uttlng and thett maintaining the required liaison bet-

weenthevariousactolswithoutinterferingtoomuchintheufuit. ol .irft"t. Accordingly, ten separate lists of entreprene'

utr *"t. submitted to the DIC, the Industries Extension Officer'

iirhanguth, the Khadi & Village Industries Supervisor' Manda-

*ut, "oi the concerned banking offices between February 1 and

f"t.uuty 10, 1982 in the case of Kishangarh and between

September I and September 15, 1982 in the case of Mandawar'

nuring tle same periods copies of the lists of all such loan

"ppfi*tt, from the two blocks, falling within the jurisdiction of

uuriout ttan"hes of the Punjab National Bank were also submit-

t.J n tnt office of the lead bank oficer for necessary actiol'

ih. follo*ing are the lists of different banks approached by the

team showing against each of them the number of prospective

l'40

entrepreneurs, both, traditiorlalfinansed by each:

A. Kishangarh Blobk

St. No. Name of btuk and viilage

Purjab Natibnal Baak,Alwar

l. Raibka

BdhadurpurI. Bahadurpur2. Sheikhpur

ff. Punjab Natidnal Batrk,Khanpur Meban

l. Khanpur Me*an2. Bolni

iII.

il.:

I. State Bank of Bikaner andJaipur, Kisftangarh,

I . Baskirpalnalgar2. Chamrauda3. Kishangarh (ganj)4. Nangal Mar[jia5. Noornagar

Punjab National Bank,

RUft,AL Ii\ibUSTiUALISAfiOfi

non-tradjtional, to be

No. of applicantsindicated

2

t9(1)

,)

10-(2)

14-(5)

Total 2l

Total

Total

l0ll

412

16

85

FIIIAN6I}{G NUNAL INPUSTRIBS

B, Mandawar Block

Sl. No. Name of bank and village

L State Bank ofBikaner & Iaipur,Mandawar.

l. Mandawar2. MoondPur3. Seelgaon4. Shirod Khurd5. Todarpur

No. of applicantsindicated

(l)I

llIl0_{l)

Total: 24

ll

25-(rj4

1

3-(l)

*41

Punjab National Bank' Jat

Behrorl. Birod2. Gaduwas3. Jalawas4. Maulawas5. Palava

Total:

Punjab National Bank, Harsoli

1. Tinki-roodi

Unitqd Commercial Bank, KhairthalNangal BawlaPahel

Total:

New Bank of India, TatarPur

L TatarpurAlwar-BharatPur Gramin AanchlikBank, Jindoli

l. Jindoli

(l)76I5

III.

w.l..|

v.

142

Note: Figures in parentheses

tional industries.

Havirig given these lists to allDistrict Industries Centre which is

' for implementing all schemes ofDistrict, the extenslon functionaries

. block level, the developmentthe concerned bran0hes of variousteam, in terms of the guidelinescareful monitoring of all developmto (g). The following are some of

I tions made in each 6f the two bloc

A. KishangarhAs stated, in Kishangarh f

commercial banks itrdicated 85these 51 applicants fell withinbranches of the Punrjab National

' ing 34 within that of the State(SBBJ), Kishangarh.

Immediately on receipt of the:deputed one of thbir Technicalold freshly appointed Tamilianscarcely express hitnself in HindiMewat dialect-to prepare the Iapplicants and file them with the

'located at Alwar, Bdhadurpur and KrTechnical Officer had to do the iobhe took nearly 50 days toLr^,.,^.,^- :- +L^ l^-.However, in the last week of Marchreport to his office:

Total no. of applicantsNo. of applicants not aNo. of cases found ineligiblefor loanNo. of cases indicated to thethree branchps of pNB

A.B.c.

D.

RURAL INDUSTRIALISATTON

applicants for non-tradi-

concerned agencies--theapex governmental body

industrialisation within theof the department at the

of the lead bank. andal banks, the study

discussed earlier, started ats in respect of steps (d)more important observa_

different branches ,of twoof possible financing. Of

purview of three different(PNB) while the remain-of Bikaner and Jaipur

lists the lead bank officetwenty-three year

e Engineer who couldand least of all in the local

applications for the 5Ithree branches of the pNB

pur Mewan. Since thisides his normal duties,each of the applications.

e submitted the followine

at site5l2l

FINANCING RURAL TNDUSTRIES

Village-wise break-up 'of the 23 cases recommended

financial assistance by the type of industry is as follows:

r+3

for

,S. VillageNo.

TotalNational Bank at

t. Raibka 5(shoe making)

Bolni 7 -(moonj-ban)

103.

4.

Sheikhpur -BahadurPur -

l0(snoe maKlng,

I

(weaver)

Total

As regards such applicants which were reported not available

at the site, only three persons from village Khanpur confirmed

that thp! had heard of a certain bank ofrcial trying to locate

them, while hll the iemaining 18 persons assured the team that

noone ever approached'them or even tried to reach them' As

regards the remaining 2l artisans whose cases had been 'recom-

mended' to various banks by the aforesaid technical ofrcer, no

foliow-up action was taken by the concerned banks for on-the-

spot verifications between March 1982 and April 1983 in spite

of more than ten visits by the study team. Most frequently

ailvanced reasons responsible for such inaction included among

oihers:a) the branch concerired had already over-shot

number of small loans;b) insufficient staff in the branch as the official responsible

for on-the-spot verifications was on leave;c) not interested in small advances to a particular village as

it was too far off.6In spite of repeated contacts maintained both with the con-

cerned branches as also their immediate superior in the form ofthe lead bank officdr located in Alwar, not a single case of finan-cial assistance was reported either out ofthe total 51 indicatedby the project team or out of the 21 cases recommended by thetechiical officer oftheir own bank until April 1983.

2311

the targetted

___L

applicants revealqd the fa

144 &URAI TNPqET*IALT$ATIOIJ

PNB as discussgd, tbo qnlyteam for financing artisang

State Benk of Bikaner andong with others, 3.4 c&ses ofta this braach in Februaryof an ahnost once-a-week

no action was taken tillAugqst, 1982.

In this partic{lar case eventhe senior mernbers of the study

visit to the SBBJ branch bvin March 1982, did notof sufrcient staff in the

iable excuse of the bragchroutine visit by one of theheadquarters in Jaipur, wlo

also happened to be aware of the current project and its objec-disbursement of loans toout of the total 34 from

five villages indicpted to thevtllages lndrcoted to tne bAfter the disbursement of advances in Au.gust, 1982

wheg the concernpd branch was subsequently approached bythe fleld activist, the Branch furnished the followingreportl

Besides the thiree brapcheo 6fother banking office eontacted byin the Kishangarh block wasJaipur locatod 4t Kishangarh.

lnthe

A.B.

Total nu$rber of applicanNumber gf artisan entreqrNumber of loans disbursr

343ll024

l.

+.

5.

Previous ilefaulters of theNumber of artisans notNumbqr Of artisans not aat the sitd

ed1e

Nqnber qf artisans whocial assistbnce in the mor

t finan-

of NoveEber

Later enquiriep by thq tgem bout the pending or rejected

-makers from Noornagar-of applying for fresh loaps,None of thg repro$entativesan-the-$pqt verifiqatiqp.

l3

trINANCING RUR,AL INDUSTRIES 145

b) Four artisans, two shoe makers from Noornagar and twoweavers from Baskirpalnagar, reported to be ,.not r.nterested',in getting a financial assistance informed the team that theywere not approached by any member of the bank,

c) Similarly, both artisans from village Nangal Maujia re_ported by the bank as "not available at site" also stated thatthey had not left the village on the day and tinre on which thevwere, supposedly approached by a representative of the bank.Our enquiries from the village also confirmed that neither theincumbent's family members nor any other person in the villagewas awaro of any such .tfield visit" by the bank representa,tive.

d) As regards 13 pendi:ng cases from village Chamrauda.the bank had reported that the incumbents were not interestedin a loan at that time of the year (August) as it would be un-economical for them since the rary material (,moonj') was notreadily available and that they would be automatically sanction_ed the required loans in November, I9g2, when the iaw mere_rial would be available in abundance and also at the cheapestrate. Enquiries from the possible recipients revealed that thevwere never individually approached by the bank, and it wasonly at the suggestion of one of their panches (himself one ofthe six recipients of loan in August; lggl) that the bank haddecided to.postpone the disbursement of assistanc€ to theremaining thirteen applicants.

It is true that raw material (moonj) is available cheapest inthe month of November each year. But, if it is true that itsnon'availability was the only reason for keeping the decisionabout l3 applicants pending, then it was difficult to understandhow the concerned bank chose to make an exception in thecase of six others who got the loan in August, 19g2. Thus, evenin this case, the grounds on which loans were not disbursed.remain dubious and the explanation weak.

B. MandawarJust as in Kishangarh, in Mandawar also a total of 94 cases

(89 in the traditional sector) of prospective entrepreneurs wereindicated to six banking offices of four differeit commercialbanks, And here also, as in the case of the previous block, theproject team's participation io th9 implementatign process rprasiq-

t46 RURAL INDUSTRTALISATION

ed at a minimal lbvel-re stricted y to once-a-week visits

to both, the Posslble reciPients a the banking offices concern-

etl-with a view to finding out progress made, if any, inthe intervening Ptriod.

Out of the six difrerent omces contacted by the

team, as manY a$ five, whenever

same response as in Kishangarh,came up with the

namely, that the branch had

no special staff for field and that the loan applica'

and unless the ProsPectivetions could not be PreParedcntrepreneurs thdmselves the branch for a loan. As

regards the sixthi that is' the S Bank of Bikaner and JaiPur'

Mandawar, each time the Branch Manager showed

stepso he invariablY ex-

er on account of temPorarYconsecutive visit to the

team that if the Khadi andprepare the loan applica'

tion forms in Sach case then the bank might be able toously.accomplish the romainder

The concerned KVIC promptly prepared the

loan application forms for four the total six applicants identi-submitted them to the bank.fied from village TodarPur andwere also taken exPeditious-

of Rs. I .000 each were

by the first week of Novem-

Such efBciency however, was ot practised in the case of the

remaining 18 aPPlicants indi to the same branch or thethe block. In the subsequentother five banking offices wi

weeks each time a bank was approached, he suggested

the KVIC SuPefvisor Prepare applications both because

sufficient field staff, and alsothe concerned btanch did notbecause they exsected the SuPt

already done in the case of oner to reDeat what he had

On his part, the KVIC o countered that preparationbanks was not a part of hisof loan apPlicatilon fbrms for

duties and should rightfullY be

When asked as to whY he hadpur carpenters, he could not gi

that the bpnefici|ries in questio

by the banks themselves.an exception for the Todar-

any satisfactory reply excepthappened to visit him person-

FINANCING RURAL INDUSTRIES I47

ally at his residence and since he was relatively free at themoment, he did not mind preparing their applications. Enqui-ries from other employees of the Block Development Oftcesuggested that the ofrcial was invariably more cooperatiye toa certain group of artisans on acoount of caste affiliations.

Another equally interesting case of a government official'sover-zealous response to implement a developmental interven_tion solely on account of caste affiliations was also recordedin the same block. In this instance, an important official ofthe Block Development Office, on seeing that four advanceshad been promptly disbursed by a certain bank surmised thatthe study team had influence only over that particular branch,and not the rest. Therefore, the ofrcial directly as well asindirectly tried to influence us to submit the list ofa group ofmore than ten artisans to the branch even when technically. thevillage did not fall within the purview of this branch.

Financing the Entrepreneurs (Non-traditional Sector)

On the non-traditional side, only 43 entrepreneurs (Ramgarh30, Kishangarh 8, and Mandawar 5) could be identified, beca.use of, as clarified earlier, miserably poor levels of educationand. exceptionally low levels of technical and entrepreneurialskills throulhout the region. Even so, most of the units identi.fied in this sector fell in the low-technology and very elemen,tary level ofthe non-traditional or modern industries sector.

The following are some of the important formalities requiredto be completed prior to setting up an industrial unit in the tinyand small-scale sectors in Alwar district:

i) Preliminary negotjations by the prospective entrepre-neur with the banker for financing the intended industrialventure;

ii) Temporary registration .of the unit with the DistrictIndustries Centre;

iii) Preparation of the project profile by an official of theDistrict Industries Centre, usually the Industries ExtensionOfficer;

iv) On-the-spot verification by an official of the concernedbank for ascertaining the viability of the project, and prepara-tion ofa 'fpalibility report';

148

v) Obtainidg a no-dues

vi) Obtainidg price listsequipment and submitting the

ed treatment td each of the

however, elabofate onlY on

any other suit4ble official ofDuring such a meeting the b

the project and advises the et

of the artisan QntrePreneurs'

i

RURAL INDUSTRIALISATION

Ramgarh experience and try tostages in a nutshell as regards

bank deputed for the PurPose.makes an overall assessment of

about the'bank-ability'

such, five of the total 30 aPPll-

the requisite machinerY ardto the bankl and

vii) Disbur$ing the loanIn the following Pages we propose to give a detail-

orescribed above. We shall,

present the outbome of differthe other two blocks, namelY sarh and Mandawar. The

reasons for such a coursg both, the need to economise

on space and tl[e fact that w shortcomings were noticed

in the 'test' bloPk (Ramgarh), found to be equally or even

more true in thle other two

i) PreliminarY. Negotiations the Bankers

In normal course, a entrepreneur interested

in setting uP a tiny/ unit, is expected to -aPproach

with the branch manager orthe bank and dliscuss his

ofthe scheme.

In the Presont instance, the projects of the non-

traditional seotof from Ramgarh block were

discussed along with the

Ramgarh meeting in Jan

sector apPlicants at the

1981. During this meeting a

series of industry-specific questi were asked to elicit sufficient

information about the incum

skills as welt 4s his Previous

t's technical and managerialexperience, if anY. During

this meeting tvio of the aPPli were rejected as the entrePre-

neurs could nof furnish replies. Of the remaining

28 applications, the requests five were cleared bY the bankwith those of the traditionalall otber eligibility criteria.

view of the fact that each of

for immediate financingsector, Provided theY fulfillThis decision was taken onlY

the five cases oould be under the differential

rate of interest (DRI) sche me.

preneurs,

certificates for these five entre-included in the same list as that

FINANEING RURAL INbUSTRTES U9

cations for financial assistance from Ramgarh block in the non-traditional sector, were finalised $y February 20, 1981.

ii) Temporar! Registration of the tJnitsTemporary registration of the unit is a prerequisite for any

entrepreneur wishing to set up an industrial unit. The normalprocedure for this is that the prospective entrepreneur fills upan application form, available on payment from tbe DistrictIndustries Centre or the Industries Extension Officer located atthe Block headquarters, requesting the Department to registerhis unit temporarily. Upon reviewing the completed applica-tion the District Industries Centre deputes one of its ofrcials,usually the Industries Extension Officer in the case of ruralindustries, to inspect the site of the proposed industry andsubmit his report. If the report is favourable, the District Indus-tries Centre considers the unit fit for temporary registrationand enters the same as such in its records.

In the present instance, 22 of the remaining applicants inthe non-traditional sector (five entrepreneurs having alreadybeen financed under the DRI scheme in February, 1981, forwhich registration of the unit was not required; two, havingbeen dropped after the Ramgarh meeting; and one entrepre-.neur fiom village Alavada had his industry registered prior toapproaching the present team) were advised to obtain the requi-site application forms from the Industries Extension Ofrcer,Ramgarh, and get their units registered temporarily. The entiremonth of March and also the first half of April, 1981 , theIEO in question did not register eveD a single unit. Of the 22applicants who approached the concerned ofrcial during thisperiod, at least 16 wqre told that the requisite application sta-tionery was out of stock; therefore, they should come again andenquire after 15-20 days. As regards the remaining six entre-preneurs, they were. asked by the concerned official to pay anapplication fee which was nearly five times higher than theofficially prescribed fee.

Since all the entrepreneurs identified under the 'Action'' project had been advised not to pay the us;ual likhai-pailhai-ka-

paisa, none of the units could be registered. The project team,therefore, brought the matter to the notice of the immediatesuperior of the offcial in queetioq.

The superioS in turn neitlnor disbelieve it but preferred to

pushing the issub further, and aa way out. The concerned officiget as many apltication forms t

itself, only it wduld have to wa

150 RURAL INDTJSTRIALISATION

appeared to believe the storyperfectly non-committal.

Throughout tho dialogue he intained that the applicationstationery must in reality be out stock with the lEO, Ram-garh. When o[re of the team bers asked him to commenton the exorbitairtly high fees fr registration which had been

demanded frord six of the the suoerior ofrcerwaived it off as a rumour spread

to malign his dopartment.In the face of all this the

by unscrupulous enttepreneurs

members saw no point inthe DIC official to suggest

advised that the team couldit liked from the Block Officefor a few days. When one of

the team members suggested

purchase the re{uisite number c

if they could themselves

forms on cash payment fromthe DIC and hahd them over to concerned IEO, he was toldthat this could dot be done, there was a particular Proce-

procedure needs to be follow-dure for doing everything anded.

In tbe last week of April 1981. the Industries Extension

Officer, Ramgarh, when by the project team, in-formed us that dhe requisite ion forms had been receivecand that he woulld start the units within two to three

days' time. When aPProached a the IEO informed that itreeister the units before 20th

periods he would be 'busy'implementing a "strictly timeRural DeveloPdent (IRD).

programme of Integrated

When in the last week of Jt

touch with the nEO, Ramgarh,

three weeks' lelave. When we

1981, our team tried to get inwere infbrmed that immedia-field work for the Integrated

the ofrcial had proceeded onthe Joint Director,

an alternate Industries Exten-ish the task of temporary

units, we were told thatdo anything in the matter on

at Ramgarh was in a posi

FINANCINO RURAL INDUSTRIES I51

tion to do justice to the applicants, both because of his know-

ledge of the territory and of the people concerled; and

b) The DIC was already short of staff; therefore, it would

require ordets from the Directorate of Industries, Jaipur, toprovide a substitute for the IEO, Ramgarh.

However. on his return lrom leave, the IEO did not create

any more problems and completed the temporary registration ofthe 22 industries in the non-traditional sector within a week's

time.

iii) Preparation of Project ProfileAfter an industrial unit is temporarily registered with the

District Industries Centre, the department is required to pre-

pare a detailed project profile. The "Project Profile" in broad

terms is a statement of the total capital requirement of a parti-

cular industry indicating separately the amount required fotfixed capital anil for working capital.

In the case of rural industries this statement is required tobe prepared by the Industries Extension Officers who usually

have a printed manual for ready reference which contains all

the relevant information required for preparing a 'Project

Profile'.As regards the present project, the team' together with asking

the Industries Department to register the 22 units temporarily,

had also been trying to persuade the IEO, Ramgarh, to prepare

the project profiles so that they could be submitted to the bank

for completing other formalities. But the concemed ofrcial

insisted that unless the prospective entrepreneurs could show

him their sources for funding their respective projects, he was

unable to prepare the project profiles. Such a stand by the

official actually amounted to asking the entrepreneurs to obtain

their respective banker's approval and sanction of loans even

before the project profiles were submitted to the bank'

However, as a result of the persistent efforts and persua-

sive appeals made by us, the IEO softened considerably' With

the result that he prepared all the 23 project pro6les and sub'

mitted thenl to the State Bank of India (ADB)' Ramgarh'

iv) Preparation of Feasibility Reports

The feasibility report is prepared by a representative ofa

152 RURAL INDIJSTRIALISAITON

lending agency with a view ro the credibility ofthescheme. Normally, the banker the following factols irtoconsideration in the preparation of

a) easy availaSility of the te raw materials;b) industry-specific development;c) the levels of1 skills and

preneur to run the industrv s

of the prospective entre-

working capital to ensure asmooth take-off ofthe unit; and r

e) ea*y accessibility of mark outlets for the produce.Five out of thei total 30 appli

d) financial sorundness of theseed money as well as sufficien

sector for financial assistance wereartisa.d entrepreneurs, and anothercourse of preliminary dialoguestudy team then nequested theRamgarh, in March, 1981, to

Such a stand by the bankstalemate from tho point of vistated, the industrieb departmentsite of this, namely, feasibilityand temporary registration later.hopes of getting thd bank to prepare

incumbent to contribute the

ons in the non-traditionaliven finance along with the

amounted to a virtualof the project, because asinsisted on just the oppo-

the project profites

were rejected during thethe entrepreneurs. Thee Bank of India (ADB),

feasibility reports forthe remaining 23 units. In to this we were informedthat the bank was unable ro the feasibility reportsuntil each of the 23 units was t y registered and pro-ject profiles of each submitted toinf,ormed that it was only .on the

bank. We were furthers of these two 'essential'

formalities that the bank could be reasonably sure that theindustries department had no on in getting these unitsstarted in the rural areas. , this would also ensurethat the proposed units got the subs dy in time.

first and project .profile

fore the Indastries dxtension Officerand registered the units temporarilv.

As a result, we gave up allthe feasibility reports be-

However, even after the IEO eted the temporary regis-tration and submitted the projeotnon-traditisnal indulstries, the bank;

profiles for each of the 23the exception offinan-

cing one unit,lo failed to take anv22 units till April, 1983.

in the case of the other

FINANCING RURAL INDUS1RTES

v) Obtaining the No-Dues CertificatesA no-dues certificate is an essential document which every

applicant for financial assistance from any financial institutionis required to produce. This certificate is required to be signedamong others by the revenue department 4nd all other bankingand financial institutions operating in the area.

Immediately after the preliminary dialogue between theentrepreneurs and the bankers in January, 1981, each of the 23entrepreneurs in the non-traditional sector rvas asked by us toobtain their respective no"dues certificates. By February 15,1981, at least six of the entrepreneurs reported that they hadobtained the certificates, Out of the remaining 17, another nineobtained their certificates by March 10, 1981; and yet anothertwo entrepreneurs between March 10 and July 15, 1981, andaccordingly reported to the team. The remaining five entrepre-neurs never made any attempt in this direction. They wereeither skeptical from the beginning or their enthusiasm slacken-ed when they saw nothing being done for those who had com-pleted all the formalities.

vi) Procuring the Quotations of PricesEvery entrepreneur is required to procure the quotations of

prices from the . dealers/rnanufacturers of the requisite plantand machinery and submit this information to the lendinginstitutions. These quotations serve as the basis on which thebank ascertains the quantufir of assistance to be given to eachentrepreneur.

Eleven out of the total 23 entrepreneurs in the non-tradi-tional sector had obtained the quotations for their plant andmachinery by March 15, 1981. Since the programme had cometo a virtual standstill as no action was being taken either bythe bank or the industries department, the enthusiasm of theremaining entrepreneurs wps considerably dampened, As aresult, no attempt was made by any of these entrepreneurs toobtain the quotations.

vii) Disbursemenr of LoansWhen all other formalities like temporary registration of the

industry, completion of a satisfactory "feasibility report", obtain-ing of the no-dues certificate, and the quotations for machinery

153

the entrepreneur is consi-dered eligible for pbtaining the

In the present instance, only one out of the remain-this block in the non-tradi-

this stage. Apparently, thising 23 entreprerleurs selected

tional sector could manage torvas possible only because the en eur had not only tempo-rarily registered his unit but obtained the quotation andmanaged to get the Industries on Officer to prepare theproject profile for his unit, prior t coming into contact with

to be done in this particularloan, was merely to have

us. As such. all that was

y the bank. Even this thewada managed to accom-and sin ele-mindedness of

t54

acceptable to the bank, are compl

case prior to actu[lly disbursing 1

the feasibility rqport preparedenterprising entrbpreneur fromplish through hib persistent efl

results. As regards the remainingapplied for a loan to set up a

RiJRAL INDUSIRIALISATION

hree entrepreneurs, each hadcycle repair unit and they all

purpose.It is indeed a sad com on the state of both rural

industrialisation ds well as the banking system that untilthe five disbursed under theApril 1983, only one loan (besi

DRI scheme in February, 1981) o t of the total 23 indicated inMarch 1981 for firrancing in the traditional sector. had beensanctioned and dibbursed.

pective projects with the concerntouch with theni for the Dast

of the total eight applicantsalready discussed their res-

banks, and had remained inmonths. but without anv

belonged to the sdme village, Since the loan require-Rs. 2,000 the project teamments in each chse were less

advised the concelned bank, PNB,accommodate thefn under the DR

Alwar, in this instance, toscheme. But as with otherindicated to this particularapplicants of the traditional secto

branch by the team, in this too, no follow-up measureswhatever, were tal<en by the bank.

As regards Mandawar, two of entrepreneurs, one eachhad already got their unitsfor a saw mill and lathe mac

iting in each case for theirprepared by the Industriesthe IEO's position had been

In the Kishahgarh block fi'in the non-traditional sector h

temporarily registered and were

and the KVIC Secretary

155ftNANCINC RI]RAL INDIJSTRIES

supposedly responsible for doing the job was neither equipped

nor available to do the work, no action had been taken in both

the cases till APril 1983.

Of the remaining three applicants, one of them, a widow

from village Tddarpur had been trying unsuccessfully for several

months to get financial assistance for buying a knitting machine'

Having tried in vain to get a loan under Antyodaya, then under

Integrated Rural Development (IRD), and finally KVIC, the

worian became totally disgusted with all development agencies

and agents and when under the present project the concerned

bank ianctioned four advances to the artisans of the same vil'

lage, the widorv was reported to be'unavailable' at each ofthe

two visits paid by a representative of the bank for on-the-spot

verifications.Of the remaining two applicants, one from village Birod who

wanted financial assistance to start a soap factory' had paid no

less than four visits to the block headquarters at Mandawar and

each time returned empty-handed as the required application

stationery for temporary registration was said to be "not avail-

able" with the official concerned' We contacted the entrepre-

neur on six different occasions at his village shop, and each

time the incumbent in question pleaded with our field resear-

chers to delete his name from the list' He complained that each

time he went to the block office at Mandawar about 30 km away

from his village he lost at least Rs 50 (Rs. 10 travel expenses

plus the Rs. 40 he would have earned had he kept his shop

open). Wtrat the applicant was specifically infuriated about was

that each time the application form was not available or could

not be obtained at the block headquarters, he was asked to

return the following week. During the team's last two visits' the

hopeful entrepreneur was so embittered that he would scoff at

uoyoo" tryin! to implement the governmeot's development

schemes.The last of the five applicants in the non'traditional sector

from this block had not done any homework for obtaining a

loan and happened to be a young man from Mandawar itself'

who wanted a loan of Rs. 2,000 for setting up an auto repair

unit. Since the incumbent was already running such a unit and

happened to be a skilled worker (informally trained) we listed

his name and accordingly informed the concerned bank render-

156I

ing linancial assis(ance undervisits by the incumbent to thevlslls Dy tne tncumbent to tformalities like on-tbe-sporproject profile had failed to yield an

In this manner, ln spite of allon behalf of the prospective entr

,level of motivation of the entresector in both Kishzringarh and Mcase of financial assittance to the nonised. In either insta,nce, it isdoorstep of one agency or thetainly more complex than a meretions involved.

lBeneficiaries-Traditionat Sector

Of the total 268 gntrepreneurstance, only 103, that is a mere 38.4Table 5 gives the details by type ofbf entrepreneurs oniginally ia.pplications rejected; (c) the nurnthe number of casps of on-the-number of pending applications ipcovered under the present project.

The data in Table 5 present a sogards the traditional sector. Of theunder the project, more than half,applicants failed to get the desiredfesources that could be musteredalready stated, ofthe total 130 re(nearly 90 per cent) &re from Ramgrbiaed share of the other two blocks wPer cent.

After the experience in Kishaafound ourselves in tro position tofate of the project wpuld have beenfbr a very high level participation tdistrict administration. The outoometilvo blocks also reinfqrced this feeliolcprned branch manqgers moved

hURAL INDUSfRIAiISAfION

DRI scheme. Repeatedbank office for further

on, and approval of theresults till April 1983.efforts made by the team

and a rather highurs in the non-traditional

dawar blocks, not a singletraditional sector material-

to put the blame at theand the problem is cer-

ing of the institu-

ntified for financial assis-cent could be benefited.

of : (a) the number; (b) the number ofof units financed; (d)

I fnancing; and (e) theeach of the three blocks

state of affairs as re-268 artisans identified

is, 54.49 per cent of thece in spite of all the

r the project. Again, asents, as many as I 16

h alone, while the com-ks out to a little over l0

and Mandawar, wea guess as to what the

in Ramgarh, were it notboth the bank and the

f our efforts in the latteras in each case the con-after tbey learnt both,

t57FINANCING RURAL INDUSTRIES

Tabte 5. Statement showing numbers of cases talentifed' pe$ding

anil reiected itr tbe traditional sector

S. BlocklNo. type of

industry

Total no.of unirsfnancedfied ted d.ing out of the on the

originelly spot

idefiirted

A, Ramgarhl. Carpentry 6

2. BlacksmithY 43. Mooni-ban 18

4, Basket making 26

5. Durry making I.6, Weaving 17

7. Shoe making 1

8. Sculpture 29

21

4I

:

;8

JtJ

II

3

j

)l.

t4t9

t4I

29

91

2727

t7

Total 102 l0 116

6.

312-211-

29236-lt 1l302244-2-2-

14 10 4 -40 40

29-296-'6-

B. Kishangarhl. CarpentrY2, Blacksmithy3. Moonj'ban4. Weaving5. Shoe making6. S,?ki making

10l0Total 77

C. Mandawar1. Carpentry2. Mooni-ban3. Shoe making4. PotterY

Total 89

Grand Total 268 14 157 130

directly and indirectly that we had 'contacts' at the highest

i*.t of tt" bank and governmental hierarchy'

Beneff ciaries-Non'trarlitional Sector

The situation in the rron-traditional sector is hardly any

i.ri"i ino" in its traditional counterpart' This is perhaps due

158 RURAL INDUSTRIALISATION

formalities required to beand also too complex

, we can say that the leveler with the extension and

out of the on theoriginally spotidentified

Total no.of unitsfnancedfed ted ding

',_

4-l-l-t-3l

2

64II

I

t I

ItIlI

lr z

l-l,_

I

Total

.8, Kishangarhil, Iathe I12. Flour. mill Ii3. Plastic moulding 2t4. Candle making I15. Bicycle repair 3

Total 8

I2I

I

mainly to the fact that the numbercompleted in this cdse are muchin comparison with the latter. Orofinfrastructure ddvelopment, tr)banking services avdilable at the m t, is too poorly equip-ped to efrciently deal with all of non-traditional indus-

Table 6 gives the block-trial development in rhe rural

Table 6. Statement showing number cases identifieit, peniling andsectorrejecteil int the non-trailitional

S. BlocklNo. type of

industry

Number

A. Ramgarhl. Lathe, welding

and compressor2. Saw mill3. Flour mill

r4. Oil mill' 5. Dal mill'6. Ice candy. 7. Lime kiln8. Stone crusher9. Electrical

switches10. Soap factory11. Sewing machine12. Steel furnituref3. Restaurant14. I Bicycle repairs

FTNANCING RURAL INDUSTRIES 159

Table 6. (Contd.)

c,l.t

4.5.

MandawarLatheSaw millSoap factoryCandle makingKnitting machine

Total

Grand Total

wise details of the total number of units identified, financed, or

reiected in the nqn-traditional sector'

Thus, of the total 46 units identified in the non'traditional

sector, only five units were financed, an achievement of less than

11 per cent for the entire region. Even this number comprises

twJ cylcle repair units, one road-side dhaba, one sewing

machine, and one flour mill' Of these' except for the one men-

tiqned last, none can be considered as a non-traditional industry

in the true sense of the t€rm. The only case of on-the-spot

financing likewise, is that of a sewing machine' The follow-up

orrurur.i taken for the pending cases is given a detailed treat-

ment in a subsequent chaPter.

Under the financial assistance aspect of the action project'

a total of Rs. 1,42,500 was disbursed to 136 entrepreneurs from

three blocks comprising the north-northeastern region of

Alwar district. Out of this Rs. 7,300, that is a mere 5'12 per

cent. was distributed to six units in the non-traditional sector'

while the remaining Rs. 1,35,200 or nearly 95 per cent was

given to 126 units in the traditional sector' A village-wise

iescription of all the loans sanctioned and disbursed both in

the traditional and the non-traditional sectors is given in

Table 7.

It can be seen from Table ? tbat the maximum amount

sanctioned and disbursed per unitwas Rs' 1'500 in the tradi-

tional sector, while that in the non-traditional sector it u'as Rs'

2,300. Of the total 132 loans disbursed under the study' 38

loans were of Rs. 1,500 each; 431oans were of Rs' 1,000 each;

28 loans were of Rs. 900 each; 221oans were of Rs' 500 each

and only one loan was of Rs' 2,300.

I60

T

Blocklvillage

of No,lndustry units

A. Traditional sector

I. Ramgarhl. Alavada Weaving 172. Chidwa Moonj-ban Zl3. Chauma CErpentering I

. Shoe making 34. Doli-ka-Bas Sculpture 325. Milakpur Bbsket making 5

RURAL INDUSTRIALISATION

Loan sanctioned Total amountper unit (Rs,) disbursed

(Rs.)

Table 7. Statemeht showhg tdtalunit stoiitioned onil Disbr in the North-Northeastem Region

of loam and amoutrt per

of districts.No.

It

r,0009@

1,0001,0001,5C0

1,000900

1,500500

I,000I,000

900500

t 7,00018,900r,0003,000

48,0005,000

900r,500

5008,000I,0005,4009,500

6. Naugaon C&rpentering g

7, Neekach BlFcksmithing 18. Sainthali ldbonj-ban 69. Tikri Babket making 19

Total rl6

lL Kishangarhl. Chamrauda Mbonj-ban2. Noornagar Shpe making

Total

r One of tbe udits was sanctioned

III. Mandawarl. Todarpur C.atpentering 4

Total

1,19,700

64

I,0001,500

1,000 olly.

1,000

6,00c5,500*

l0 r I,500

4,000

4,000

Grand Total 130 t,35,2N

'PTNANCING RURAL INDU$TRIES 161

\able 7 . (Contd.')

B, No 4raditiorsl sector

l. Ramgarhl. Alavada2. Chauma3, Neekach4. Ramgarh

Flour millTailoringTailoringRestaurantBicypleRepairs

Total

2,300500500

1,5001,5001,000

7,300

II1

I2

-.:6

2,3@500500

|,5001,5001,000

II. Kishangarh

lll. Mandawar

l.

2.

Total 7,300

Grand. Total 132 1,42,500

NOTES AND REFERENCES

For further information on block-wise data on land-hold-ings of the artisans identified under the project, see Appen-

dices I (i), (ii), and (iii).Information on the socio-economic characteristics of these

entrepreneurs, see Appendices II (i), (ii) and (jii)'The commitment of the State Bank of India was aptlyreflected by the faot that the then Deputy ManagingDirector (Planning Development) Shri R. P. Goyal who

later beoame Chairman of the bank, personally attended

the meeting. So did Shri G. S. Srivastava, the ChiefGeneral Managgl of lhe Lccal He ad Ofrce of the StaleBank. Delhi.

162

4.

5.

7.

9.

10.

One person who managed

happened to be known'knew' the official responsibThe official in question belment and demanded Rs. 5

who was already temporarilIndustries Centre for install

RURAL INDUSTRIALISATTON

get the 'No-Dues' certifrcatethe Sarpancb, who in turnfor makine mischief.

to the revenue depart-certification.

registered with theg a flour mill.

In all such cases when theasked as to why he would

branch manaqer wasencourage fresh accounts

since the branch already a few account holders fromthe village, we were told t the branch was interestedonly in relatively bigger in the village concernedas it was a bit far off from branch headquarters.The field headquarters of study team was located rightacross the road from the inq uestion.The Branch Manager in ion had somehow learntthrough his Kishangarhhad contacts with the hi

that the project team

of putting on pressure if itups and was actually capablewished.Extension Officer in Manda-Since the post of Industries

war was not filled during days, the KVIC Super-visor also u$ed to look the functions of the IEO. Itmay be of interest to note ever since the creation of

level, it has almost invari-Mandawar. as the block is

this post (IEO's) at the bablyremained unoccupiedconsidered to be verv and remote. Technicallythe IEO, Kishangarh is to perform the dutiesof the IEO, Mandarvar, as , but in practice it is the

looking after this work,KVIC Supetvisor who has

over and abpve the duties d responsibilities incumbentupon him irt that capacity.The unit is that of an from village Alawada

District

Cneprsn 7

Teehnieal Shills Deuelopmentand Upgradation

Any worthwhile programme of rural industrialisation especial-

ly ofthe non-traditional variety presupposes ready availabilityof skills, such as factory operatives, machine tenders, skilledmechanics, and industrial craftsmen. In Alwar too, at least twotechnical training institutes were opened to fulfil this need ofthe loca1 industry. However, the experience in this regard has

not been happy so far. These training cantres were establishedwithout much understanding of the actual need for trainedpeople in the local industry. With the result a large number oftrained man-polver remained either unemployed or were forcedto seek employment outside the district, Further, even thequality of training imparted was found to be wanting in morethan one way.

It was due to these considerations that we dacided to tdke

adequate steps to promote industrial talent backed by suitable

training programmes. However, in view of rather poor educa-tional levels, we had to limit the range of vocational trainingcourses to a very elementary level.

The list of various training programmes offered to the villageyouth of Alwar district, and the corresponding minintumeducational levels required for enrolment in each case is given

as follows:

Trade Miilimum Eilucational Levell. Tractor mechanics

2. Motof winding3, Pumpset repairs

MatriculationMatriculationEighth standard

9. Blanket rveavingeather goods and sh

As can be seen above. though the minimum educa-tional qualifications to be elieibte for enrolment were

rather low, the response waseligibility conditions had tothe motivational level was fo

three-fourths bf the applicants

r64

4. Auto r[echanic5, House-wiring6. Lathe gechanic

?. Tailorihg8. Carpet weaving

RURAL'NDUSTRIALISATION

Eighth standard

Literacy

from encouraging. Even thesewaived in certain cases whereto be exceptionally high, even

previous chapter, a total of 199

in this sector-87 fromand 37 from Mandawar. Nearly

in this category were in the 18-25unemployment ranging from

rity of these hopeful recipientsent or ghronio unemployment

potentially explosive elementto have a look at the distri-

educational attainments and thefaced in each case. In

the relevant data of the above

Table I, reveals that ofthe 199technical skills development/than 78 per cent were in the

19 per cent in the 26-35 yearst in the 36-45 age group. It is

)n when the elderly generationlevels of stills, they are reluc-

, both on account of eco-g skepticism about the effi-

they were found to be quiteo learn new skills. A liitle over.

10. L

Consideri4g that the m

rvere victims of underemploand constituted the bulk ofin the rural areas, it is pertirbution of this group by age,nature and dxtent of unemTable I therefore, we are givariables.

tant to join ady training

An analysis of the data inyoung personf identiffed forupgradafion frogrammes, mr

18-25 years a$e group, nearl!age group, ahd a mere 2 per ,

thus interestirig to note that I

are not satisfidd with their ov

nomic reasonq as well .as a lilcacy of suchi programmes.willing to sen{ their childrenthree per cent of lhe cases om amongst the 36 ypars and

I

';

=r.;go.9

lr-*-xo!

egEA€:lF:

=z.9i

=zlD 6)qtfct-o:.)Eg;a_z

,(I)

-i.

lr

d

sP

Yrtl

c;R

paioFuaJa(aN

s,toatr guo3tt a.tow

stDaISor€

ssal npaf, e

patbldtua

patoldutg

zrDtatqlI

at0npo,t9 .

sJoatr9f'9t

stoaa9t-92

sJDAtr

9Z'81pag[!tua

-p! sarc4ptnclo bqunN

aSEE^T. lpolg

----.oN r

TEEHNrcAL SKIi,tS DEVELOPMENT AND UPdRADAfION 165'

t.

\o

6

q\

oo

l3l* l.',cnd

l-*or+.ai I

c.t !q **ot cr * |

* | | | | "t.,r I

ao o\ 61 a\t \., o ti €

do\it6l,(n* I

l(r l6|:1,-. I

loo,ia l.''N

i 6|'- tcl F vl

<h l|.1<i-d

c{\o**Ndt I I

ttlttt,tl-,-lll.l, I

d.\r:r cnott- |

cr f..r g \6.b F €

{d.4oOoo'*oOi"ani

lll

V

E{E'8.-€?*3€EEEEE{E.E{<ff6oPZdfi< -i ..i,.,i d vi d r- rd

c{

(\

tla.l

I

t

x

a\

d-o

RURAL INbUSTRIALISATION

N

a

al

e.l

I

*

6l

F

F

-- | -.. I lorcl

tlrlt-t---lr*ttt-lrl-lll*^l

F

\o

o\

F

csr

.NiHNN*HF'N

..t N I i- | l^r

$c. I l- l- | |

-*ll-ll-ldc.| | lc.rFi.4:

N6tdrr- l-.-

*ll*lll--

rlttiltl_l-tttttttl

", llllllNl\9r * r\|:i -a.,t F-:f

o\r H 6t.rf H(\to\t

.t €.^ .s; YL

sseiei;g$-.1 6i..i + vi 6 F crt oi

ta

t

a.l

t-

6l

6l

N

a{

(\

0\

\o

F

or$\oH li

I l*- | |

I lHc{.tN

tlt.llat!.roN(flia.|

H lO.n< |

|1'"'nl'r I

I la$ | I

I lFo'iN

-r.t*q.o I

a.l ..1 .i r.r g x

rtt-tlll'llI tl- tl

| -i .f .+ d i

.ov5$+or

-rr&3.--

e !s F! roE<qFE!E EE*fi8gzJ6-.i 6l .'i .c vi \o

*$.s

x

q\

166

!

ID

Fr

i

I

TECHNICAL SKILLS DEVELOPMENT AND UPGRADAfION 161

above age-group were found to be from among such persons

who volunteered to participate either because they were sufr-

ciently economically sound or chro:rically unemployed'

The number of literate persons among the members of thisgroup works out to a respectable 145 which is nearly 67 per

cent of the total applicants. However, on a closer look at the

levels of educational attainment of these, one finds that the

bulk is formed of persons with three-to-five years of schooling

(27.23 per cent), followed by those with eight years of school-

ing (nearly 23 per cent) afld the matriculates (l?.68 per cent).

It is also interesting to note that in a group of nearly 200 possi-

ble trainees, there was only one graduate candidate. Thisshould not, however, be misinterpreted that rarely does any

person reach the degree level from amongst the poorer artisan

communities; in fact the majority of persons with graduate

qualifications from amongst the scheduled/low caste communi'ties prefer to join government service rather than pursue theancestral trade.

The data also suggests that the literate and semi-literate

rural youth is perhaps the worst affected by unemployment.

Out ofthe entire group, only 22 persons, that is, a mere 12 per

cent, are reported to be fully employed; 54 persons reportedpartial employment; while the remaining 123 applicants, thatis, about 62 per cent are reported to be chronically unemployed.

The condition of those chronically unemployed is rathergrave as nearly half of them are reported to have never beeD emp'loyed all their lives. Similarly, at least 30 persons' that is, 24.39

per cent were found to have been unemployed for more thanfive years, 23 (tbat is nearly F9 per cent) had remained unemp-

loyed for periods ranging from three to five years, and the

remaining 12 (9.75 per cent) had been unemployed for less thantwo years.

As in the case of the immediate focus of the action'research

project, namely "rural industrial development", so also in the

case of its secondary objective, that is "technical skills develop'

ment"; our experience in the 'test' block-Ramgarh-charte d

the path and helped us modify the strategy for the remaining

two blocks-Kishangarh and Mandawar' We shall, therefore,deal first with the outcome of our efforts in the former and

only then recount our experience in the latter blocks.

168

Oryadsing Tecbqical SkilhRamgarh Bloek

Negotiations.with the appropriateous training progtammes for tbotaken with efect from March. Ir€asons. the task was found besetthe exception of the tractor mecIndustries Centre (DIC) and the(lTI), Alwar, wer0 the only apprthese training programmes. Butfor various reasons.

As regards the local ITI which inising training prqgramrnes likemotor winding', md pumpset repaiiug it was rrded. obt as all the :

atr training had eSressod ainstitute.

The District nndustrieserpressed its helplessness in omes, as it found itbelf tied downgoveraing the setting rip of traiTte rules which hindered the pro(a) the DIC critefia whichbe found in close proximity ofsuccessf,ul sompletibn of the trpotential. for the person soremunemrtively in fihe villageDevelopnent Agency (SFDA) oritunder no circumstances themseowning moe than eight bigbas of

Firstly, the nature of the projrd"dtes were scatterbd all over thedificult to, get combact groups. Savailable in a cluster-prospectiBamboli village fof instance-nofound among the villagers couldeaoh of the candiddtes, even ifaad rur his unit, supcessfullv in the

The SFIA criteria similarly at the roots of all aftempts

ftURAL INDUsTRIALISATIoN

hogra rnes-

ncies for organising var!Ramgarh youth were under-. But on account of several

multiple problems. Withcs training, the District

dustrial Training Institutee agencies for organising

headway was rnade in either

the proper agency. for orga-wiring, lathe and welding,

the possibility of approach-enlisted for vocation-

unwillingness to join the

(DIC) on the other hand,g these tra.ining program-

certain rules and regulationscentres in the rural areas.ork in this instance are:

that the candidates mustother and also that, upon

there should be sufrcientto pursue the vocation

and (b) the Small Farmerthat the ca didates must

own or belong to a family

was such that the candi-yat sarniti, and it was

15r, even rvhen they weretailoring candidates from

t of human ingenuitythe department that

would be able to set upitself.

TECIiNICAL sKILLs DEVET oPMENT AND UPCRADATIoN 169

made in the direction of organising vocational courses for therural youth. The nature of the training courses being opted

for, required the candidates to be educated. Only the retatively

rich could afford to send their children to school, and since

most candidates' families happened to possess more than 3

bighas of land, they were ineligible for enlisting in any trainingprogramme as Per regulations.

Thus, all our attempts to organise the training programme

through the various channels provided for by the government

having failed, one was faced with the task of finding alternativechannels for accomplishing the objective. We started exploringthe possibilities ol conducting these training programmes withthe help of M/s Eicher Goodearth Limited, who had expressed

their willingness to cooperate with us in imparting the tractormechanics training to boys identified under our project.

By September 1981, Eicher had agreed "in principle" tohelp the project in organising the training programmes, but itwanted to take up the task in stages. We were assured thatonce the tractor mechanic's training programme was launched,Eicher could work out the details for its further involvement inthe project.

Oiganising Tractor Mechanics Training

During the course of our field work for enlisting unemployedyoung persons for various vocational €ourses, the tractofmechanics course turned out to be the most sought after train-

ing programme in the villages of Ramgarh block. However,

only 13 boys drawn from foul villages could be enlisted, as

most of the others desirous ofjoining this training failed tosatisfy the m nimum educational qualification criteria, namely,

matriculation, laid down for the course.

Negotiations for orgatrising this training programme were

undertaken with Eicher, who had expressed willingness to parti-cipate in the programme, in March 1981. However, not muchheadway was rnade until September 1981, as the companyneeded the intervening. period to work out the finarcial impli-cations and finalise the operational details of the training pro-gf amm€.

Io the first week of Septernber, 1981 the company intimated

l?0 RURAL INDLISTRIALISATION

us that the requisi{e arrangements starting the training pro-gramme had been made and it could be larinched with

The tentative time scheduleMechanics Training Pro-

effect from September 28, 1981.for different stagps of thegramme as preparqd by Eicher was as follows:

Stage ProgramineContent uration Location

I Familiarising the candi-dates with technical ter -minology and varioustractor components.

il Imparting theoretical 2knowledge about tractormechanics,

III On-the-job practical 3

training.

onth M/s Eicher Good-earth Ltd., EnginePlant, Matsya In-dustrial Area, Alwar(Rajasthan)

M/s Eicher Good-earth Ltd., TrainingSchool, Faridabad(Haryana)

finalised, th,e companyeach of the candidates

onths Various workshopsof M/s Eicher Good-earth Ltd., locatedin Haryana andRajasthan.

Thus, the traifilng programme to be conducted in three

different stages of one month, months and three monthsduration respectivoly. As stated er, the duration of each

be varied, depending onphase was only tentative, andthe trainers, decision. In additi it was also decided to paya stipend of Rs. 100 per month to of the trainees to coverthe cost of daily tr&nsportation their village to the EicherEngine Plant locatdd at Matsya Ind

All operationall details having I

deputed one of it$ officers to intei'

Area, Alwar.

for the Tractor Mechanics Trai Programme individuallyand finalise a list of at least tenSeptember 1981, therefore. our

In the first week ofactivist oaid a visit to each

of the four villages-Bamboli, Ch 'ti. Dabri and Neekach-from which the aPPlicants had identified, and asked them

TECIINICAL SKILLS DEVELOPMENT AND UPGRADATION I7I

to appear for a personal interview at the Block Development

Ofrce on a certain fixed daY.

Accordingly, as against the l3 candidates originally identi-fied, at least 18 aspirants of the Tractor Mechanics TrainingProgramrne showed up at the Ramgarh Block Office on theappointed day and time. This number comprised eight new

applicants from village Bamboli alone.

As regards the remaining ten boys, six had come fromBamboli, two from Neekach, and one each from Dabri and

Churoti. In this manner, at least three of the possible reei-pients, trvo from Neekach and one from Dabri frorn amongst

the originally identified did not show up for the interview.Later queries front these boys revealed that both the boys fromNeekach had decided against joiniog the training because oflack of proper transport facilities from their village to theMatsya Industrial Area*the tentative location for conductingthe training. The boy from village Dabri could not come forthe interview, because he had been dissuaded by his family onaccount of the pressuro of work in the fields and because of theproblem of daily transportation frorn the village.

However, those who did turn up that day were interviewedby an Assistant Manager in the Personnel Department of EicherGoodearth Limited, Alwar, in the presence of our field activistand the Industries Extension Officer (IEO), Ramgarh Block'Most of the questions were asked by the Eicher representativeand were aimed at assessing two traits of the incumbents: (a)general aptitude of.the candidate, and (b) the level of motiva-tion of the incumbent. In addition, the applicants were also

speci{ically asked if it would be possible for them to attend thefull training course and whether proper transport facilities exis-ted to commute every day from their respective v.illages to thesite of the training centre.

As already stated, Eicher had decided to give each of theselected trainees a stipend of Rs. 100 per month to cover thedaily transportation costs. But, the interviewees were notinformed accordingly on that day. Instead, they were told thatthe question of stipend was still under consideration and theymay or may not finally get any monetary assistance to under-take the training. The intention of such a strategy was only toweed out such candidates who might have ofered to join the

tn2

tlaining in the lure of the stipend.tive as five of the applicants droppedidteresting to note thAt each of these fiand. Neekach and three from Bambolin&lly identiffed.i Another freasure itaken after the

sure that only the rhost highlyfinally join the training prograrnm€r{maining l3 boys to sign a declaratieffect that none of them would leaveirtg. Such a suggestion by theforth an amazing re4ction which sup

the boys from village Bamboli showedabove announcement and producedn4mes, addresses and signatures ofbQys, written neatly on the bottompaper, and informed the interviewerstiyely decided to tender a singlecompany could fill in anything tbohalf.

; To make an assess{nent of the enthv4tion ofthese l3 prospective recipitrfining, it is pertinent to note the corthem was prepared to irndertake the

, a) They will undertake the traidqcided that no stipenfl was to be paid

I b) The training programme didgu&rantee-explicit or implicit-of asupcessful completion Of the training;

I 9) Each of the tr{inees would going programme under ill circumstan

In this manner, th{re was a finallitprate rural youths ofl Ramgarh blockthg tractor mechanic's course. In lieuhowevero each of the gandidates was ive{y liberal assistance in setting up hison successful completion of the training

, Although Eicher had provision to ta

at A time, it was decidrid to call each o.da{es to keep a margirl for potential rda{es to keep a margirl for potential

URAL INDl]STRIALISATION

is move did prove effec-out at this stage. It is

e each from Dabrito the origi-

erview to make doublyvated candidates mightwas to ask each of theon a plain paper to the:-way through the train-representative brought

everyone. One ofp within minutes of thefoolscap sheet rvith the

of the remaining 13ft-hand corner of the

the boys had collec-tion and that the

liked on their (boys')

asm and level of moti-of tractor mechanic

itions on which each oflng:even if it was finallythem;

not cafry with it anyrption in a job on the

ough the entire train-

of l3 literate and semi-ho wished to undertakef absorption in a job,ividually promised a

wn tractof-repair unit

a batch of l0 traineesthe 13 selected candi-

ts. The trainees

TBC1TNTCAL SKTLLS DEVEI"OPMENT AND UPGRADATION L73

were accordingly asked to reach the location ofthe trainingcentre on September 28, 1981.

'As expected, only Il boys

(10 frorn village Bamboli and one from village Churoti) finallyshowed up to join the training on the appointed day and time.The two who did not come belonged to villages Bamboli andNeekach, the former on account of some domestic problems

and the latter for the s&me reason as the earlier three from hisvillage ( ) the lack of adequate transport facilities.

The training programme finally commenced on September

28, l98l with 11boys. Soon after the trainees joined, theywere informed that each of the trainees would be entitled to a

stipend of Rs. 100 per fnonth and would also be given tea twice

a day at company expense. Besides, they were also informedthat instead of one month, the Alwar phase of the trainingprogramme would be three months, and the one at Faridabad,

one month instead of two.During the first fortnight after the commencement of the

programme, three more boys-two from Bamboli and the lone

candidate from village Churoti-dropped out on accoirnt ofvarious reasons. We maintained a regular contact with the

organisers of the training programme throughout its entire

duration to get up-to-dlate information about the progress made

by each trainee. At each of such meetings both, the organisers

of the programme and the instructors expressed their satisfac-

tion with the performance of the trainees, especially the level

of motivation of each. A.t the end of three months the trainees

were given a test in which each ofthe trainees passed with an

"above average" grade. Such a performance from these boys

. surprised us and the Eicher people.

On successful completion of the first phase, the trainees were

sent to the tractor training school ofthc company at Faridabad

where they were inducted to lessons in theory and practicalwork experience of tractor repairs. At Faridabad, in additionto the monthly stipend and twice a day tea, the boys were alsoprovided with a free mid-day meal and fully subsidised residen-

tial accommodation for the entire duration of the course. ltrere

too the trainees were given a test towatds the end of the course,

and here too each one of them passed with high grades.

At the end of the course, a1l ooncerned, &e 'project team,

the trainers and the trainees, were highly satisfied with fhs pro-

gress of the project, and eagerly

$ep. With a view tb make an or€lramme, it was decided to call a mihvolved. According[y, each offbr Policy Research; New Delhi,day and time. Among others, the

U,y some of the senior faculty memResearch, and a few fepresentatives([-ocal Head Offce), New Delhi.r One of the most important in

!i,as to chart out the future course ofand work out the details for settinein the rural areas of Alwar. Duringthe boys expressed thoir doubts aboutThev claimed that Eicher Tractorsthe total tractor population withinfbrmer was the only single cylinderwould not be econdmically viabletiained in repairing multi-cylinCerparticipants insisted, it was decided tibg in multi-cylinder tractors.; As a result, M/s Escorts Ltd.

artraining course for these boys, prefi

Haryana. While Escorts agreed toexpressed its helplessness to do soBangalore-the location of Escortsall the necessary facilities existed. S

multi-cylinder tractors was indecided to send the boys to Bangaloretlle Escorts Training Institute.

As regards funds for conductingthe Escorts Institute to conductto provide the trainee$ with free lod;course of the training. For other exboarding, after detaildd discussions iteqs themselves should be asked toamount (roughly Rs. 600/- per

that the trainees' willingness to incurirtdicator of their level of commipdogramme in partioular, we felt it was

URAL INDLISTRIALISATION

forward to the nextassessment of the pro-

g of all the three partiesassembled at the Centrea previously appointedirig was also attended

of the Centre for Policythe State Bank of India

ons of this get-togetheron for the recipients

their tractor-repair unitscourse of discussionsviabilitv of such units.

only a fraction ofdistrict, and since the

or, such workshopsthe trainees were

tractors. Since all thegive them further train-

approachedly at Alwarganise such a course, itany other place except

raining Institute, wherea limited exposure to

for the boys, it wasbr a brief crashcourse at

training, we persuaded

training free of cost andg facilities during the

such as travel anddecided that the train-

the costs. Though, thete) was small, we feltsum would be a good

t. At this stage of the

to organiseitself or in

necessary that the train-

TECI{NICA.L SKILLS DEVELOPMENT AND UPGRADATION

ees too should be made to have a stake if the entire opera-tion.

Accordingly, one of the team members visited villageBamboli in person and informed the boys to prepare themselvesfor joining the training. The response of each of the traineeshowever turned out to be a bit lukewarm in the beginning andutterly cold and negative at the end. None ofthe candidateswas prepared to join the training at Bangalore under thoseconditions. The excuses (reasons) put forth by the incumbentswere as follows:

a) Cannot arrange the entire amountrequired to undertake the training 3 boys

b) Too much pressure of work in thefields 2 bovs

c) The venue of the training is toofar and alien

d) Cannot leave wife atd childrenbehind since having a nuclear family

It is difficult to classify the group in terms ofthese categoriesalone, as each of the boys invariably came up with a series ofreasons for not being able to join the training. Indeed at onestage or another of the conversation, each of the traineesinvariably brought up the issue of financial hardship togetherwith all the others mentioned above, with varying degree ofemphasis on each.

When the field activist had exhausted all his resources, he

decided to discuss the mattor with the respective heads offamilyof each of the seven trainees who were living in joint families.Accordingly, the fathers of six of them and the etder brother ofthe seventh were called for a meeting in the village chaupal(chhapra in local language). Our activist addressed this entiregroup of elderly people in the presence of the trainees and somethirty odd hangers-on. Besides explaining the objective of theentire training programme, the activist also clarified the positionof the study team vis-a-vis the candidates. Emphasis was parti-cularly laid on the future possibilities open to each of the boysif they opened their own workshops on successful completion ofthe training. In addition, all possible cooperation to the boysin the matter of setting up such units was also repeatedlyassured.

rls

I boy

amount would be returned to himAs regards the remaining fi

176 R,URAL INDUSTRIALISATION

Though not fully convinced, parents of these boys afterprompted by some of thesend their wards for the

discussing among themselveshangers-on, reluptantly agreedBangalore training. As such, fl of the boys volunteered theirnames and requeqted our activist get their seats booked for

however asked him to spendns and assured him that the

Bangalore on t[eir behalf.the money for failway

their arrival in Delhi., they expressed their hdlp-

lessness to participate and that it would not be Dossiblcfor them to pay the money either or later. At this point itis Dertinent to have a look at of the broad socio-economiccharacteristics of each of the trai In Table 2 therefore, we

giving separately for each of the candidates, relevanton age, edugation, marital occupation and property

The data in Table 2 give fairly good idea of the socio-economic status of the tractorBamboli. All the boys fell in the

ic trainees of villaee-32 years age group and had

studied up to high school. At four of them were unemploy-ed, of whom two were unmarri while the other two weremarried and had children.very common a$d nearly 90farnilies. The ldne candidate

afedata

joint family system was stillcent were members of suchof these eight who had a

nuclear family wals also the one w did not have either land orany other worthdhile item of , All other trainees ownedsome land either individually or or both. Four of theboys belonged to families owningSimilarly, all tbg candidates buta bicycle, or some other movable

en or more bishas of land.e mentioned earlier, owned

item of property. As. can beseen from Table 2 there was diesel engine and pumpset

and two tractors among theanong acceptors and two pumps,

non-acceptors. Dairying was also uite commonly practiced andexcept for a lone trainee, all had one or more heads of

economic assets of the twowere financially

te,rparts, yet they refused toon the pretex! of economic-acceptors had more land

t?1

do-9P?rtrqot'o0atnE SiiE

.a Ot^

..rct | |

E .E:E

E'o.9 ,99 FF

ti E t.rq ctr> Dp

.E BE

() EE.S EE< pp

c CF

€ gs.9 .9.9

K KF

:^ ?, i

h

r:'ioli()

E-r

-

v,

P<

<; Cl fi{

o\

TECHNICAL

RURAL INDUSTRIALISATION

_eB!so

=(!5()

9''oi5

60.'=6oE!.k

ea.sg

Fto, i;x9ox'0xc0).:: llc-9

<tl

*

'&d) ^;E Er+E f E#

f9oH.E,rr 0OF. c

"1 " i)eg g.o'.ts .g

.:

€Eg€E

tZ'= ':;r;E 65=

SEEEB

.26H}

.9FbE<D

o.Y

ti()

:>G:'i NFru

!k ia

E

tri "i \o

!E:9

c{c{

\i

a.l{)

Er

178

TECHNICAL SKILLS DEVELOPMENT AND UPGRADATION i79

and hence more responsibilities at home, but if one considersthat these were the very people who had suggested additionaltraining and even agreed to join at Bangalore, then it becomesclear that their refusal at this stage was due only to their reluc-tance to make any financial commitments.

While discussing the socio-economic status of these trainees,it is pertinent to give a brief account of candidate 'A' among theacceptors. This particular incumbent, a 31-year-old Brahminhaving a wife and three dependent children (two of them schoolgoing) was the highest educated among the group, and also theonly one who had a nuclear family. He possessed neither landnor any movable item of property. The only other source of in.come besides his meagre earnings as a daily wager in the Postand Telegraphs Department was a milching cow. Yet he haddecided to sell the cow in order to be able to undertake thistraining.

Since candidate 'A' was better educated and more maturethan the rest ofthe boys, he would invariably assume the roleof a spokesman for the entire group, The activist.therefore askedhim in private why the boys were backing out at the last stageof the training. His response, though brief, summed up the typi-cal reaction of, if one may use the expression 'pamperedl villag-ers (especially in those villages which are easily accessible andalso relatively better developed), who, over the years had be-come so used to extension functionaries begging at their door-steps to help them fulfil their targets that as and when and tothe maximum extent possible, they (the villagers) resorted toarm-twisting tactics. This was precisely, explained candidate'A', what these boys were trying to do with the project team.They (the trainees) were convinced that more than themselves,the study team itself had a stake in the successful completion ofthe training. As such, through their non-participation, they weretrying to pressurise the team into paying them whateverexpenses might be required to join the training at Bangalore.

Since the economic hardships argument did not hold goodin most cases, we had already seen through their game, butwhen this was confirmed by one of the recipients themselves,we decided to go ahead with only four of the boys who hadoffered to join the training at their own expense.

Os rgtq$ing to Dclhi, the aetiyist booke4 fqqr r4ilway seats

, 180

for the acoeptors a{ projeot expense,

them. However, deither did theany communicatiof on their behalfthe reservations had to be

Once again the aotivist vtsi

tioned the boYs. This time wispokesman for the grouP infothose who had refrfsed to participathe village elders, ilt had been deci

the training togethler, they (a11 thesink together. And since allexpenses involved, none would join

Further investlgations in thealtogether different reason for such

the group. It was discovered that iof the senior most ofrcials of the

' the course of one df his routine vis

the group that thefe was no need

at such an exhofbitant cost as

Not only would the incumbents nthing from their Pockets, they

stipend. This apparentlY had been

turn by this grouP of alreadYSince all the tresources were

appeared no reasPo to PlaY thisMechanics cliapter was closed. Hasceptors 'C' and'D' appeared atDelhi and gave thd assurance thattake the Bangalofe training on thnally notified to them. Thoughagain the necessary arrangelrrentsat the Escorts Training Institute,

' thereafter sent to Bangalore foron multi-cylinder traotor repair a

Since both thesie boys seemed

up independent tlactor rePalrprofile (see APPendix III), was

necessary negotiations were co

finance these units. On successful

intgF$iv9 training at Bangalore

hURAL INDUSTRIALISATION

to be recovered later fromarrive nor did we receive

ill the last moment. FinallY,

village Bamboli and ques-

ut westing much time, the

that in consultation withduring the last visit, andthat since they had started

ight boys) must swim ornot prepared to incur the

Bangalore training.however revealed an

volte-face on the Part ofthe intervening Period, one

strict Industries Centre into the village, had assured

go to such a far-off Placet could be organised locallY'be required to spend any-

also be paid a handsomeible for a total about-

t participants,y exhausted and there

game, the Bamboli Tractor, within two days of this,

project's h€adquarters atwere prepared to under-

terms and conditions origi-mewhat unwillingly, once

made for their trainingsalore. The trainees were

intensive three-weekcourse

and capable of settingts, a comprehensive project

for such a unit andwith the State Bank topletion of the three-weekthe boys returned, the

TECI,TNICAL SKILLS DEVELOPMENT AI'JD UPdRADAtION I8I

activist approached them again to apprise them of the necessary

formalities to be gone through for setting up the tractor repairunits.

However, both the boys expressed their inability to do so

as they felt that they wero not experienced enough to startindependent ventures. Moreover, they claimed that they did nothave the necessary seed money to start a workshop even if theywere sanctioned a loan by the bank. When told that the teamcould persuade the Bank to waive the condition regarding 'seedmoney' both the boys reverted to the other excuse that they werenot confident about their own ability to set up and run indepen-dent workshops successfully. As no amount of encouragementor persuasion could make a dent in their resolve, the activistdecided to leave them alone and return. Just about that time theyounger of the two boys made a request to the activist to helphim get a job with Eicher Tractors.

Before leaving the village the activist decided to contact thcremaining six boys too to note their reactions. Only.a few ques-tions concerning: (a) progress made in organising the trainingthrough the District Industries Centre; (b) the future planrof the incumbents; and (c) the overall impression formed'about the project's efforts frorn the beginning to the end, wereasked from each of the six boys. The responses from each of tlretrainees were almost identical.

a) The group was quite enthusiastic in the beginning andused to depute someone from amongst themselves to visit theDIC and make necessary inquiries regarding starting a separatetractor repair training course for them. But each time one ofthem went to the DIC, either the concerned ofrcial could not becontacted due to one reason or another, or he was sent awayw.ith evasive replies and vague promises. By now the enthusiasmhad waned to a great extent and they were all relwtant to visitthe DIC, as it not only cost more than ten rupees per visit, butone also lost a whole day. They decided to visit the DIC only ifone of them was visiting ,A.lwar for some other errand.

b) There were no plans for the future . except to stay andstagnate wherever each of them had been prior to getting intouch with the study team. Their only hope in each case waseither to be helped by the study team to get a job in Eicher, orta be selected by the company on the basis of their training and

182 RURAL INDUSTRIALISATION

experience, in case of any recrufuture.

t drive by it in the near

c) The project had certainly triand brought a ray bf hope into th

to do a good turn to themlives, but they had missedand foolishness.the train due to thdir own igno

It was typical of this group that of them openly expres-sed his disgust bdth, with him as well as the group as a

Some of them were parti-whole but did not blame anyone e

cularly irked as they had becom frequent targets of snideer, worth mentioning thatthough they had agreedsuccessful comoletion of

Mandawar. As already stated. the of technical courses offeredhad been considerably shortened aft the Ramgarh experience.As such, these I 12 applicants had ted for one of the follow,ing trades:

a) Tractor mechanic;b) Pump set repair;

the training, in their heart of hdoubt that Eicher would absorb the:performance.

Organising Technicrl SkillsKishangarh and Mdndawar Blocks

Of the total 199 applicants for theupgtadation progralmme identifiedper cent) were from Kishangarh

rts they were never in anyin jobs, seeing their good

Programmes-

hnical skills development/m the region, 75 (37.68

37 (18.59 per cent) from

of 16 boys selected frommpany assured us of theirsite training programmesmanagement would how-

c) Lathe machilre; andd) Leather goo{s and shoes,As regards the ffrst three categr es, the team approached

Eicher again who hhd already their willingness to in-crease the range of their participa in the implementation of

oject. Accordingly,afterthe skills developmont aspect of thewinding up the identification ons in the Kishangarh andMandawar blocks. we subrnitted a lithese blocks to thpm. While thefull cooperation in prganising the rrfor these boys, it informed us that I

ever prefer to defer its linal decisiop till it learnt about the out-

tECflNIcAL sKtLLS bEVELOPMENT AND UiCRADATION I83

come of the Bamboli boys. Thus, while the company assured

us of all possible cooperation in the matter, it made its support

in this instance concomitant to the shaping up ofthe boys al-ready trained by it. As detailed in the previous section, since

the earlier batch had already run into grave difficulties, we couldnot pursue the matter any further with Eicher.

Instead, it was decided to submit the lists of boys fromthese two blocks to the District Industries Centre, Alwar, whichis the appropriate agency for organising such training courses.

Such a course ofl action was further necessitated by the fact thatthe Joint Director, Industries, had already showed similar inter-est in the Bamboli boys. Accordingly, two separate lists ofpdssible recipients of tecbnical training from these two blockswere submitted to the Joint Director, DIC, Alwar, in Novemer,1982. Together the two lists comprised l0 applicants for thetractor mechanic's course; three for the pump set repair course;

two aspirants for lathe machine training; and one for the automechanic's course.

Organising Leather Goods and Shoe Making Trainlng

The north-northeastern region of Alwar district has anabundance of both leather hides and skins as well as of commu-nities traditionally associated with leather work. As alreadynoted in earlier sections of the text, this industry/craft is fastdisappearing in this region because of the social stigma attached

to it due to its caste association. During the course ofour fieldwork in the three blocks there were many instances where indi-vidual families, groups of families or sometimes even whole

villages of this caste had either already boycotted the tradecompletely or were on the way to doing so. Except for stray

instances here and there, renunciation of this trade was foundto be near total in the Ramgarh block. A similar process was

found to have set in Kishangarh and Mandawar too, but it was

not as wid€spread as Yet.Under such circumstances when these communities were

approached by the activists in the Kishangarh and Mandawar

blocks, the reactions varied from outright rejections to luke-warm response. In village Chor-basi, a village inhabited by

chamars in the Kishangarh block for instance, our activists'

i8r

query from one of the women aspursuing the shoe making vocatifollowing responsqs : "... ......around here ? Nobody ever madeare Harijan housebolds. You be

Later queries revealed thatmaking was the only occupation oing the hamlet, but ever since

naking trade, nonF of theirthat shoe making had everproudly proclaim themselves tostarve than go back to their

Under these circumstances itwe \Yere able to petrsuade 96 boyswat who enrolled themselves forof these boys were either illiterateably unernployed, ps they, alongneYer to take up slroe making evenface of such a defonsive attitudemotivated them by educatingto them if they learnt how topurses and bags itrstead of shoeselicit a promise of participationselected from twelve different viMandawar blocks for leather

Negotiations $ith theIndnstries Centre (DIC), Alwar;stit.ufe (SISI), Jaiprlr; the Officesioner, Small Scale Industries (DC1of Industry, New Deihi, wereafter the completion of identiSimilarly the process of contactingto provide sufficient funds fortraining was also isitiated

During a period of more than1982, and January,r 1983, wethe public and pfivate sectors tprograrnmes for the identifiedwer, but without ahy success,

st'u$ teacr. did not spar6 any

RURAL INDUstRiALtsAtT6N

the number of householdsin that village, elicited the

ing ? Who makes shoesin this village. These

get lost and try.elsewhere."mere three years ago shoe

the thirteen families inhabit-they relinquished the shoe

even so much as mentionstheir vocation. They nowIlarijans and would rathervocauon.with great difficulty thatKishangarh and Manda-

goods training. Mostor semi-literate. and invari-th their elders had vowedf they had to starve. In the

these groups, our activistsabout the possibilities open

leather goods like handWe had been able to

these 96 young persons

of the Kishangarh andand not shoe makine.iate agencies-the DistrictSmall Industries Service In-the Development Commis-I); and the Union Ministryin earnest in March, 1982,operations in Kishangarh.itable financial institutions

the leather goods'usly by the project team.

months between March"scores oI agencles rn

organise suitable trainingof Kishangarh and Manda-;ially considering that the

and explorcd the possibi.

tnctrNrcAl sKILLs DilvELorMENT AND IJPGRADATION 185

lities of starting these training courses at the highest levels inthe Union Ministry of Industry, the failure in the matter looks

even more glaring. Here is the list of various agencies aAproa-

ched by the project team. showing against each the various

reasons due to which the desired training course could not be

conducted:

s/.No.

Name and location ofthe Agencyl lnstitution

Reasons for ot conducting

the Training Course

4.

l. SISI, JodhPur

2. SISI, Jaipur

SISI, Agra, Central Foot-rvear Trainirg CentreSISI, New Delhi, Exten-sion Centre, Rewari(Haryana)

Bharat Leather CorPn.

Bata Shoe Co.

Leather training wing of thelnstitute lying defunct forseveral years in the absence

of (a) trainer; (b) sewing

machines and some imPle'ments; (c) work-benches.Facilities for starting leathergoods training courso notavailable.Shortage of space to accommq-

date the Alwar boYs.

No provision for imPartingtraining in leather goods; faci-lities available only for imPart-ing training in imProvedvariety of traditional villageshoes (desi Jootis); and in-ability to absorb more thanfour boys from amongst theboys identified under theproject.No provision for organisingspecial training programmes

for unskilled and semi-skilledartisans,

5.

6.

'l

I

J

The foregoing statement thus gives proof of our efforts inorganising leather goods training courses for the Kishangarh

and Ma^rdawar boys. We, however, do not clainr to have ex-

haustively explored all the possibilities available within the

160

be made at sorne distant placerefuse to undertake the course. Evthe DIC, Alwar, tb contact KoraDC, SSI to approach the Central

country for organising these tra'restricted by the ueed to keep theees at a minimum level. Inthe Ramgarh boyb and theirlore. we were conVinced that

Madras, we did not consider ipossrbrlrtles.

It is thus ampfy clear thatthe official agencies, the state ofin organising and conductingdevelopment/upgradation trainin

to which the basio inlrastructure f

condition. In spitp of all the resrto push through these training prcwhich are not ordlinarily availablelevel situation, we failed to make

nical skills is lacl4ing in the ruralther proof than the fact that thethis sector remainbd a pitiable twefforts and resourdes.

hun.ll iNpuSinrAlrsAiroN

courses, as we were alsotravelling costs for the train-n, after our experience withrepairs trainin g at Banga-: reparfs tralnlng at ttanga-

if some arrangements couldthe incumbents just mightn when we were advised byendra, Bombay, and by the

Leather Research Institute,worthwhlie to explore these

trary to all claims made byat the grass roots level

e of the most basic skills-courses is in a lamentable

that rve could musteres for thb Alwar youth,

n a routine district or blockuch headway. The extent

imparting elementary tech-areas, perhaps needs no fur-otal rate of achievement inper cent irrespective of all

Cgeprsn 8

Follow-up

The follow-up survey constitutes one of the most vital stages

to evaluate the overall effectiveness of the intervention as wellas the social and economic fbasibility of its replication for the

Furpose of future programme planning. Briefly stated thisphase of the project was intended to serve the following objec-

tives:a) to monitor the installation, growth and expansion of the

units financed under the 'action' phase; and

b) to monitor follow-up steps taken by each ofthe actors

involved-the official bureaucracy, the banks and the beneficia-

ries, in respect of the pending applications out of the originallyiderrtified entrepreneurs in each block.

TOLLOW.UP OF UNITS FINANCED

The numbers of artisans and tiny/small-scale entrepreneurs

falling in each of the above two categories monitored between

March and September, 1981, in the case of Ramgarh; between

September 1982 and April 1983 in Kishangarh; and between

October 1982 and April 1983 in the Mandawar block, are

as follows:

,S. ifa. Block and categorY ofparticiPants

N e. !f-g!t9!- ng nt19! e d i n

Traditional Non-tradi-Sector tional Sector

A. Ramgarh1. Number of units financed

2. Number of pending cases

116 6

926

B. Kishangarhl. Number of units financed2. Number of pending cases

C. Mandawar1 Number of uiiits financed2. Number of pending cases

-the recipients as well as theare being given here for indivisary, and groups of artisans w

Follow-up of Units Financed inRegion of Alwar District

The modus operandi adopted forthe 122 units financed in the first'action' project involved a keen

summative evaluation of the

ft.uiui rNousrrrlLrslrroN

l0678

4-85 5

g cases, in the three blocksentrepreneurs where neces-

possible.

North-Northeastern

pulpose of a follorv-up ofround of financing under theand participant observation

i88

The follow-up steps taken both categories of persons

by us of the beneficiaries expanding their industrialsteps taken by individualsactivity and carefully monitoring

and groups to tapkle the and other related problernsof the total t36 advancesWe may, at this btage clarify

made under the 'action' o , only one applicant (flourmill at Alavada viltage) fell in true non-traditional sector,while of the remaining 135non-traditional sector) each one

(including five loans in thefell in the Diferential Rate

of Interest (DRI) Scheme In each such DRI casethe advancing was invariablycapital.

for the purpose of working

Village-wise {escription byup measures taken by the te

of industry, of the follow-

each block, both fbr the tradiis given here separately for

nal and the non-traditionalsectors.

We may, at this stage, addbesides the 'on-gQing' or interim

in the case of Ramgarh

the first six motrths (Februaryevaluation carried out durine

bursement of financialember, l98i) after the dis-another "late stage,, oreffectiveness of the inter-

POLLOW.UP I 89

vention was also carried out in the months of March-April'

1982, that is exactly one yeaf after making the advances'

L Traditional Secto]

A. Rltr.tcens BlocrIn Ramgath, a total of 116 advances were made in this

sector-all of them under the Differential Rate of Interest

(DRI) Scheme, and each one was to be utilised as working

capital. Village-wise details according to the type of industry

sei up during the follow-up period of Februray-September,

1981, are given as follows:

lleaver s of Alavada

There were about 30 households of weavers living in a clus-

ter in village Alavada, who had been manufacturing the tradi'tional Rajasthan i Pugri on handlooms through the centuries'

As already stated, after a gteat deal of persuasion and en-

couragement the team had succeeded in advancing Rs' 1,000

each to l7 such households in February, 1981'

Prior to obtaining the loan each of these weavers used to

get the raw material from an Alwar dealer on the condition

ihut th" finished product, the Pugri, would be sold to the same

dealei. and thus he would tret approximately Rs' 3 a piece in

the bargain. Discussion with the weavers of Alavada revealed

that even the best of craftsmen could not earn more than Rs'

5 to 6 Per daY in tlris manner'

After obtaining the loan, 15 of these weavels immedia-

tely purchased a good quantity ofthread, prepared the Pugris

and then tried selling them in the open market at competitive

rates. Such an arrangement worked out quite satisfactorily as

they .were able to earn a profit of Rs. 6 to 7 per piece.

The remaining two, apparently misutilised the assistance as

one of them spent the money to buy a brass band and shifted toanother village, while the other spent the money on his son's

marriage. The rest of the 15 were regular in the re-payment ofthe loan, though as per bank rules most had been declared

defaulters because of delays in the repayment of the rnonthly

instalments. No outstanding affears were, however' reported

excePt for the two erlant cases.

190

State Bank of lrpdia (ADB)Greatly impgessed with

RURAL INDIiSTRTALISATION

for Alavada Weaversan encouraging performance

by these weavers, the State Brprepare a schetre for their furtthe SBI (ADB) in consultation

of India was persuaded toer development. Accordinglywith the District Industries

Centre (DIC) 4nd rhe Small Development Agencj'(SFDA) preparpd another schi for the further economic

was partly executed by thedevelopment of these weavers,time this report was started. scheme involves:

a) training the weavers for versifying .into other kinds ofcloth;

b) providing further financialhousehold;

c) constructing sheds of l0'xinstallation of larger handlooms;

assistance of Rs. 6,500 to each

0' for each household for the

d) installing larger handl for preparing diferent varie-ties of cloth othe$ tha'o pugris.

Iu April 1981,12 ofthese were sent to the AmbicaTextiles Co-operptive Mills at N for a month's training.A stipend of Rs. 100 per month also paid to each of these

TRYSEM scheme. The SBIto its regional office att of Rs.6,500 (to cover

the cost of the shed, the loom,least 25 househblds of weavers

for working capital) to atAlavada. However, as ofApril 1983, no follow-up acti

matter.has been reported in this

Moonj-ban Artisayts of ChidwaChidwa has a cluster of I 6 lds, all belonging to the

scheduled castes, engaged in the moonj-ban industry. All ofthem are landless who work as a1harvesting seasonl and make rope ing the rest of the year if

labourers during the

the moonj-- the raw material for rope making-and thenecessary funds for purchasing it,

A total of 2l advances-eachmade to them in February 1981.bulk during April-May and relthroughout the yefr. including theraw material becornres scarce. As

available.unting to Rs. 900 were

They all purchased moonj inbusy in rope making

monsoon season when theresult not only did the daily

TOLLOW-UP

earnings of an average artisan increase from Rs. 7 to 8 per dayto Rs, 12 to 15 but he was also able to earn throughout theyear, Marketing ofthe produce presented no problem as thereis always a great demand for this rope in Alwar town. The entiregroup was quite regular in the repayment of the loan both,during the 'on-going' and 'summative' evaluation stages.

Sculptors of Doli-Ka-BasDoli-Ka-Bas is a small hamlet along the Delhi-Alwar high-

way inhabited aimost solely by Brahmins. Sculpture of idolshad been a traditional trade of this village through the centuriesbut it had died down during the past few generations. Most ofthe households had either left sculpting altogether or migrated toJaipur and continued the vocation there.

In the last few years the art had once again been revived andhad become a flourishing business of this hamlet. This was whymost of the sculptors, nearly 90 per cent of them, were in the15-20 years age group. A.total of 32 loans each amounting toRs. 1,500 were disbursed to these sculptors in February 1981,

under the DRI Scheme.

These advances helped these sculptors considerably, insofaras five to six boys pooled in their loan amounts and purchased

a truckload of stones which cost about Rs. 8,000 to Rs. 10,000.

With the result that they got the raw material at considerablylower costs than before, when they used to buy the stone insmall quantity.

Seeing the immediate and easily perceptible difference thatthe advanoes had made in the industrial activity of this village,the bank was encouraged to make further advances of biggeramounts to four master craftsmen and at least three other entre-preneurs in the village. As a result, a total of seven loans, threeof Rs. 7,500 each, two of Rs. 5,000 each, one of Rs. 4,500 andone of Rs. 4,000, were sanctioned and disbursed in March, 1981.

These recipients immediately purchased a truckJoad each ofstone and expanded their existing activity.

Discussions with these sculptors revealed that their existingpractice of marketing the produce in a semi-finished state wasthe mo.st uneconomical activity of the trade. From ancienttimes these people had been selling their produce in a semi-finished state to the traders from Jaipur who made a fortnightly

191

192

t_

and polishing of the marble was concentrated in

round of all sculpting groups inentire produce at very nominal

for centuries, thebe sculptors had

their oroduce to the traders at unOne of the master

persuaded to trY doing the fininstead of selliqg his Productsdealers from JaiPur. Accordinof the Goddess Durga and did

Basket Makers of MilakPutMilakpur is a medium-sized

thickly inhabited by PunjabiBasket-making from Palm leapation for the women and Youngthey migrated hefe.

Until recently they used tofrom the nearby villages and the

were bought fronl Alwar, and thin their respectitve huts. The t

middleman who Would collect it a

50 paise a Piece. The middla

to Jaipur and sell them to the

good worker never came to more

RURAL INDUSTRTALISATION

district and purchased the. Since the entire finishing

o choice other thanJaipurto sell

unerative prices.

in the village was therefore,bing job in the village itself,

in a semi-finished state to thethis sculptor prepared an idolfinishing and polishing him-Delhi dealer for Rs. 5.000 at

ge of about 500 households,gees from West Pakistan.had been a subsidiary occu-

of these settlers ever since

the leaves in small guantitieslours for dyeing the leaves

they would make the basketsoduce was sold weekly to atheir doorsteps at the rate ofwould then carry the basketspkeepers at Re. 1 a piece,

baskets at Rs. 2 to Rs. 3 per

self. This, he wa$ able to sell toa net profit of Rs. 1,200. he sold it in the semi-finished

state, his earningb would have barely Rs. 500 to Rs. 600.

that these efforts broughtAnother significant diffabout in the sculPture trade of li-Ka-Bas was that now in-

to Jaipur dealers, the sculp-stead of selling their produce onlytors had succeeded in esta g direct contact with the

Varanasi dealers, and were able

entire group was reported to be

sell at competitive rates. Thegular in the repayment of

loans. Indeed at the time of late- evaluation in April 198 3,

at least three bbneficiaries reported to have repaid thetaken a fresh advance fromentire loan in less than a Year

the bank.

who in turn would retail thesepiece. In this whole operation total earnings per day of a

Rs. 1.50,

r93FOLLOW-UP

To end this form of exploitation, a series of discussions

with the women workers as well as the menfolk rvere held,

educating them about the advantages of marketing the baskets

themselves and motivating them to pool in the produce of each '

household weekly and sell it directly in Jaipur or Delhi rather

than through the middleman.In this instance too the team succeeded in its efforts in

ample measure.. A total of eight advances were made to the bas-

ket makers of Milakpur under the DRI Scheme. Five of these

loans amounted to Rs. 1,000 each and the remaining three were

of Rs. 500, Rs. 900 and Rs. 1,500 respectively.

The first step these people took in the direction of improving

their respective incomes was to buy the raw materials-palm'leaves and dyeing colours in bulk rather than buying in small

quantities. As for the former they collectively leased the produce

of palm leaves in the adjacent villages instead of buying the

leaves ofeach tree piecemeal, and distributed the total produce

proportionately among themselves. The colours and dyes were

also bought in quantity by one person from Alwar and they

distributed them equally among themselves. The whole opera'

tion resulted in reducing the cost of raw materials by 25 to 30

per cent.Similarly, for tackling the marketing problem, the group

was persuaded to depute olre person each week who would take

the produce to Jaipur and sell the produce at a oompetitive

price. This arrangement was reported to have subsequently

stopped due to personal diferences among the menfolk of the

communitY.All these efforts considerably improved the earnings of these

households so that instead of earning between Re' I and Rs'

1.50 per day, each of the women workers was now earning Rs' 4

per day, on an average.

Except for some delays, no case of wilful default in the re-

payment of the loan was reported from this village'

Bosket Makers of TikriTikri is a small-sized village of about a trundred households

and is located 20 km arvay from the block headquarters at Ram-

garh. Nearly 30 of these households belonged to land-owning

small farmers pf tle sghedqled gastes po4lnu.nity' As against t[9

194

basket makers of Milakpur, herethe branches of the palm trees

RURAL INDUSTRIALISATION

baskets were prepared from

reported who had defaultedeverdue for payment.

of leaves. Moreover.rather than the *omen. basket is an important subsi-diary occupation for the menfolk this group.

As in the case of the Tikri people also used tocollect the raw material from the or buy the branches ofpalm trees in the adjoining at a piece-rate basis. A good

-hour day, could prepare twocraftsman, after putting in an eibaskets a day. which during the. season would fetchan income of Rs. 2 to Rs. 3 a and Re. I to Rs. 1.50 apiece in other months.

A total of 19 artisans from were financed under theassistance helped theseDRI Scheme in February 1981. T

people, as those, of Milakpur,quantity on a collective basis.

buying the raw material in

went into production at full speedand April and stored-the produce

a result, all these peopleing the months of March

harvesting time when eachbasket fetched them a profit of 3 to Rs. 3.50.

In this mannen the main faced by these artisans,(that of lack of timely for working capital) having

to earn at least 50 to 60been solved, itw4s possible for thper cent more tha[ what they to earn previously from this

baskets from this village hadsubsidiary vocation. Productionalso increased co4siderably as the oung boys in these familieswere also getting ongaged in this ivity in their free time whenthe older people were engaged agricultural or any other

found to be regular duringsingle case of default was

ion in September 1982however, at least $ix such cases

by two to six instalments beco

Moonj-ban and Sitki Artisans of haliSainthali is a small hanllet f approximately fifty house-

headquarters at Ramgarh.holds, about 25 kms from theThere are 1 | famllies of castes in the villige who are

industry. All the familiesengaged in lhe moonj-ban andare landless, and their men and -young and old, includ-ing children-are pngaged in this

acllvlIy.Repayment of loan at Tikri

the interim evaluation and rthe interim evaluation and notreported, During the late stage

Besides rope and

FoLLow-uP 195

sirki-making, these people work as agricultural labour in thenearby villages.

As with other craftsmen and artisans discussed earliei, themain problem faced by the inoonj-ban workers of Sainthali, wasa lack of sufrcient working capital. In this case also it was

found that the raw material used by them was seasonally avail-able, and these artisans had to remain idle most part ofthe yearbecause of the lack of raw material.

A total of six advances, each amounting to Rs. 900 weremade in this village during the month of February, 1981. Timelyassistance helped them to buy the raw material in good quantityand enabled them to remain busy throughout the year, whichimproved their earnings considerably. As against an averagedaily earning of Rs. 6 to Rs. 7 during the season, these artisanswere enabled to earn Rs. 10 to Rs. 12 round the year.- All the six beneficiaries from this village were reported tobe regular in the repayment of the loan during both stages ofmonitoring.

Carpenters of NaugaonSituated 15 kms from the block headquarters at Ramgarh,

Naugaon is the second biggest town of this block along the

Delhi-Alwar highway. It is an important trading centre of the

block and the carpentry industry plays a promioent role in itseconomy. Manufacture of rural agricultural implements includ'ing manufacture of bullock carts is centralised in Naugaon and

farmers lrom the neighbouring villages including a few inHaryana, come here for their requirements.

Eight loans amounting to Rs. 1,000 each were sanctioned

and disbursed to the carpenters of Naugaon in February 1981.

The loan amount was utilised by each of them to purchase

wood, and in two cases partly to purchase tools. The assistance

also helped in creating additional employment for at least six

semi-literate young boys, who, on ready availability of raw mate-

rial in the family workshops engaged themselves in the familyactivity in right earnest. One of the applicants, who had two ofhis sons trained but idle because of non'availability of raw

material, was able to manufacture and sell a bullock cart at a

remunerative price in less than a month's time.

The garpenters of Naugaon havq beqn copsiderably encou'

the villages the tdam came acros$'

RURAL INDUSTRIAL;}3AIION

least two of them are alreadya saw mill andior a

wood lathe.During the inferim as also thp evaluations, all eight

beneficiaries of Naugaon were

tual in rePaying the loan'ed to be regular and punc-

NeekachNeekach is a Pedium-sized 'l

and is situated 12 kms from Nauof nearly 200 households,

and 27 kms from the blockheadquarters at Ramgarh. Agri is the main occupation

of this village. It is inhabited Punjabi setllers from West

Pakistan, a great majoritY of w bave no land and they workis also amoirg the poorest ofEducational levels also were

as agricultural labourers. N

identified-three shoe makers

e beneficiary, a blacksmith,with other artisans of the

block in FebruarY 1981. A loan Rs. I ,000 was given to himunder the DRI Scheme for the of iron and coal. Withthe belp of this working caPi the beneficiary bought rawmaterials in reasonably suffiaientstarted making small agricultural

quantities from Alwar. Hed other everyday use iron

irnpkments and rfrarketing themOn account pf sickness this

the first two instdlments of the 1o

Mubarikpur or Naugaon.blacksmith could not repay

in time, but became regularafter that.

ChaanraThis is a small hamlet of forty houses, situated 30 kms

from Ramgarh. ; It is a secluded village and hasneither electricity nor a direct to link it with rhe surround-

where the field activiststhe people. Persistent efforts

artisans were successfullya carpenter-for financial

aesistance. In eaoh case the was found to be a skilledpraftsman and ooly needed funds o pursu€ his vocation.

\Ve would lif,e to give in details the measure of our

FoLLow-uP .19'l

success in this village, particularly in respect of two of the shoe

makers who, though they refused to participate in the pro'

gramme during our earlier visits, however, came forward to

accept financial assistance at the last moment.

These two artisans, chamars by caste, had been in a dilemma

for more than five years as a result of the social transformation

movement of the chamar community sweeping through the

length and bretdth of the district' In the wake of this movement

both the artisans had abandoned. their .tools five years ago and

decided not to do leather rvork ever again' But since they had

neither land nor any othet means of income, both had been

leading a most wretched existence ever since.

When we apptoached them with an offer of genuine finan-

cial assistance, they found thernselves at a crossroad. On the.

one hand, they saw a chance of earning their livelihood by

returning to their ancestral trade, while on the other, the pros-

pect of a social boycott by the rest of the community stared

them in the face. At last, their desire to at treast make an

attempt to earn two square neals a day for themselves and

their familiqs proved stronger; and both these artisans came fot-ward to accbpt fnancial assistance to start their ancestral voca'

tion, shoe making, again.. Alt the three shoe makers from Chauma utilised their loan

alnounts of Rs. 1,000 each to purchase leather and engagod

themselves. in making the traditional joall. Each of these

artisans now makes 10-12 pairs of shoes a week and sells them

in the Sunday Haat at Ramgarh netting a profit of Rs, 4 toRs. 6 a Piece.

The carpenter from this village, who was also given a loan

of Rs. 1,000 utilised the entire amount to purohase wood andstarted making agricultural implements and other wooden arti-

cles of.everyday need in the rural areas.

The repayment of the loan by each of the four beneficiaries

of Chauma was also reportpd to be satisfactory'

B. KTSHANGARH BLocK

In this block ten artisans selected from two villages were

finanoed by the State Bank of Bikaner and Jaipur, Kishangarh.

In both village s the advances were made under the DRI Scheme,

for the purpos€ of workiog capital. The details of f'ollow-up

i98

of these artisans by type of isanctioired and disbursed arevillages.

Moonj-ban Aftisans of ChamraudaVillage Chamrauda is si

the block headquarters atBhiwadi highway. It is a settlholds of which a [arge majorityWest Pakistan. llhey are afarmers owning snrall and mediumand moonj-ban are imporrant srmajority of the t'ainilies in this gra couple of Muslitrn households inthe mo onj -ban voc&tion.

The technique followed by theent from that follorped by the localvity of the formel with the helpis nearly two hundfed per. centa result of this au average workerless than Rs. 15 to Rs. 20 per daper day earned by his local coun

Chamrduda was thus fbund tomoonj-ban artisanb formed aclass unlike all other groups invocation who were still invariablythey were found tb be the only 1

their produce locally or in Alwar 1

of places like Ahmedabad and BoOut of 19 artisdns identified fro

sanctioned loans of Rs. 1.000 eachand Jaipur (SBBJ), Kishangarh,1982. Soon after the receipt of.chased, moonj in br.ilk and went into

Bvt as moonj lvas not awild moonj crop is harvested twice aand November) they had to pay tfor it. However. bince most of tha stand-still in thb village andartisans were able.to sell their

l- _ _ , _i

at remunerative prices

RURAL TNDUSTRIALISAIIoN

for lvhich the loans weregiven separately for the two

about ten kilometres fromalong the main Alwar-

of about seventy house-Sindhi Sikh refugees from

-knit group of progressivelandholdings. Dairying

idiary occupations for the. Besides the Sindhi Sikhsis village are also pursuing

is only slighrly differ-artisans, but the producti-minors (even six-year-o1d)thbn that of the latter. As

in this conmunity earns nocompared to Rs. 5 to Rs. 7

the only village where thewell-off rural middle

district pursuing the sameow the bread-line. Again,

who, instead of sellingwere exporting it to far

bay.this village only six werethe State Bank of Bikanerthe month of September,

these artisans pur-production.readily in September (the

in the months of Marchto fifteen per cent extra

moonj-ban activity was atparts of the district, these

FOLLoW.UP

and nlake up for the initial loss. The banks did not reportany difficulty in the recovery of loan from these artisans, duringthe follow-up survey in April 1983.

Shoe Makers of NoornagarNoornagar is a small-sized village with about 150 house-

holds, most of them belonging to the chamar community.Situated midway between Kishangarh and Khairthal, it isideally located for both business and industry. However, mostof the artisans in this village were found to be landless andliving in appalling poverty. As a result shoe-making is theonly source of incor.re for the majority of the households.

During the very first visit to this village, a good number ofartisans expressed a desire to apply for sorne kind of financialassistance. When thby were told that the study team was nota funding agency in itself, and it could only help them obtainthe loans from SBBJ, Kishangarh, quile a few prepared toleave. Later queries from such persons revealed that they hadtaken financial assi$tance from this branch in the past, andindeed some of their accounts with the bank were as old as thebranch itself. But on account of some lapses in repayment.bysome o[ their compatriots, the branch had declared the entirevillage as defaulter and stopped giving fresh advances. Theconcerned balking ofrce had however made an exception in thecase of three or four persons and renewed their loans from timeto time. However, when we assured the artisans that the projectteam would ensure impartiality this time, ten persons volunteer-ed their names for financial assistance.

In the month of September, 1982, three artisans were sanc-tioned loans of Rs. 1,500 each, and one was sanctioned Rs.1,000. Each of them utilised this assistance for the purpose ofworking capital and purchased leather with the loan amount.Since the lean season (months of July and August, when allshoe-making activity comes to a standstill due to monsoons)had just been over, they were able to sell the produce at remu-nerative prices.

As they had all experienced tbe consequences of delay inrepayment ofbank money, and actually suffered on account ofit, they were reported to be very punctual in the repayment oftheir monthly instalments. During follow-up survey even the

r99

L

2oo RURAL INDUSTRIALISAfION

on with the new recipients

C) MANDAwAR BLocKSoon after winding up identi tion operations in this block,

were submitted to theock in the month of Seotem-

offices contacted by us

to the 82 prospec-only one, the State Bankwar, sanctioned and dis-

bursed loans to fotur artieans of

Carpenters of TddarpurTodarput is a hnedium-sized

ge Todarpur.

ge of about 300 households,k headquarters at Mandawaring the monsoon seaFon, itf the block, There is only

Mandawar. Since most ofand tractors can be plied

op it. As a result even those peo

bicycle, do not buy one. Todale who could easily afford a

is, however, electrified,and has a post omce and a middle

There were abbut ten house of carpenters in the villageout of which at least seven were identified for financial assis-

the lists of prospective entreprorvarious banking offices within the

ber 1982. Out ofi six different barfor the purpose of giving financialtive entrepreneurs from nine villalof Bikaner and J{ipur (SBBJ), M

tance. Since an independent saw-

cally viable, all the applicants wunit cannot be economi-

ted financial assistancd for

the team.

ioned and disbursed loans

in the village have small orexcept in a few instanoes,

working capital. Even in this " some of the artisans hadeither had loan accounts in theaecounts at the tiine they approac

As village Todarpur in general

or already had similar

this community in parti-cular were reputed to be 'good' clients in the bank (SBBJ,Mandawar) circle$, the latter did hesitate in sanctioning theadvances in this vlillage. Duringtherefore, the codcerned branchto four applicanfts out of ten (

last week of October, 1982,

the village and a total 24 cases

during the previotrrs month.

of possible financing fromthe block, indicated to it

Msst of the obrpenter familiosrEsrginal landholdings.

20iFOLLOW.UP

carpentry becomes an impoltant subsidiary occupation for these

people whenever necessary funds to purchase the requisite raw

material are available. The financial assistance of Rs' l'000

each to four of these artisans helped them buy the wood from

Mandawar, where both wood as well as a saw nrill to cut it

were readily available. Thus each of these artisans were enabled

to utilise their spare time from agricultural pursuits' more fruit-

fully and thereby increase their incomes'

Except for one instance, in whose case the repayment of the

first instalment was delayed on account of sickness, the entire

group was found to bb regtr,lar in returning the loal'

II. Non-traditional Sector

In the non-traditional sector, forty-six entrepreneurs selected

from the three blocks, Ramgarh, Kishangarh and Mandawar

falling in the north-northeastern region of Alw-ar district were

identified under the project. Of these, nearly 72 per cent were

selected from Ramgarh while merely l'1 and ll per cent were

selected from Kishangarh and Mandawar respectively' As

akeady detailed in Chapter 6 only six units out of these could be

financed due to various leasons.

Even out of these six units, as many as five could hardly be

considered as real non-traditional industrial units, as each ofthem required a very elementary level of skills, was neilher

power-operated nor generated any employnrent exc€pt for the

incumbent himsell As such, each of these was accommodated

under the DRI Scheme in February 198 t , along with I 16 other

artisan entrepreneurs financed under the project.

Follow-up survey of these units was also conducted side by

side with that of artisan entrepreneurs from this block. Out ofthese five, except for the tdiloring unit of village Neekach where

Rs. 500 disbursed for the purchase of a sewing machine were

misappropriated as a result of impersonation, all other uirits

were found to be functioning properly, both during the 'on-going' as well as the late-stage evaluations conducted by us'

Of the remaining four applicants, three had taken a loan forexpanding their existing units (one a restaurant' (dhaba), and

twt bicycle repair units). while only one wanted to start a new

venture, a tailoring shop in his village Chauma. In each case

,6i

the assistance holped theand. in at least two instancesin a city and start a business in

The only unit financed underextent, be called, a non-traditimill unit of village Alavadacomes in the very lowlevelbut since it fulfils some of thetraditional unit, we propose toconsiderations for giving an elathat it is the only one of its kindit is illustrative of the overall non-the rural areas,

Flour Mill, AlavadaThe entrepreneur was a young

unit (composite runit of flour micotton ginning) terinporarily registfrom the appropriate agencies ocontact with the project team inthe prospective entrepreneur wasmill at Rs. 400 a month. Whileown unit in his native village, Alaholding on to his job in Delhi.

In October, 1980, when thecontact with us, ho was quite dislhis efforts to get his unit financedNational Bank, Allavada and theR amgarh. He was greatlycould get the requi$ite assistance ifof eligibility for obtaining financiWhile his name was listed by us,with his job.

Since this person had alreadymalities, he expec{ed his unit toothers. Accordingly hetwice each in the rnonths of Novemthree times when fre requested tocharge of sanctioning all types ofwas asked to come pext week as

RURAL INDUSTRIIiISETION

increase their incornes.them to leave their iobs

own respective villages.project -which can, to someindustry is that of a flourin May, I 981 . Even this

service-industry sector,ther prerequisites of a non-

it in some detail. Otherte account of this case being

the project and becauseitional industries scene in

of 28 years who had hisoil expeller, telghani, and

and a no-dues certificateprror to coming into, 1980. At rhat time

ployed in Delhi in a flourwas trying to set up his

he was simultaneously

first came intoed and depressed as all

failed both at the puniabBankoflndia (ADB),

when told by us that hefulfilled all the conditionsassistance from a bank.was advised to continue

all the other for-financed before all the

the SBI (ADB), Ramgarh,and December. The first

the bank's oftcer in-oans to village Alavada, heconcerned olficial claimed

FoLLoW-uP

to be "very busy" in the current week. Since the entreprcneur

. was employed in Delhi, he could not visit the bank more thantwice a month. The fourth time that the bank official was asked

to visit the site and prepare a feasibility report for the proposed

industry, the prospeitive entrepreneur was assured that hisunit would be financed together with the others identified underthe project.

In the second week of February, 1981, when the SBI (ADB),Rarngarh, disbursed as many as l2l loans under the DRIScheme, the concerned official had still not inspected the siteand prepared the feasibility report.

By this time the young entrepreneur had already resignedfrom his job as he was finding it difficult to pursue the matterwith the bank and continue with the job simultaneously. In thelast week of February, the bank.informed him that he neednot come daily to the bank as his loan would be sanctionedtogether with those of the other applicants in the non-tradition-al sector, and,would be done soon.

In the second week of March, 1981, the official in-charge ofsanctioning loans in village Alavada visited the site, prepared afavourable feasibility report and submitted it to the bank. Inaccordance with the rules the entrepreneur was asked to submita no-dues certificate. When it. was submitted it was found to beoutdated as it had been obtained in Septernber, 1980, and hadceased.to be valid as six months had elapsed.

As a result the entrepreneur was asked to obtain a freshno-dues certificate. The process of getting the certificate afreshtook another month and a half. It was submitted to the bankin early May, 198 I, and within a week,s time a loan of Rs.2,300 for the purchase of a flour mill was released.

It may be of interest to note that even after ali the timeand money spent in finally getting the bank to sanction the loan,only one part of the composite unit of a flour mill, oil mill andcotton ginning machine for which the entrepreneur had appliedwas actually sanctioned and released. The bank,s reasoning fordoing this, as explained to one of the project members was, thatthe bank wanted to see if the entrepreneur was capabie of pro_periy running the. one unit sanctioned to him. If the entrepre-neur succeeded in the venture, he could always approach thEbank for sanctioning a fresh loap.

i:ot

__L

204 hiinel rNoustnuirsatroN

That the young actually succeeded in thiswithin a couple of monthsventure and applled for a fresh

of the former, will be discussed in this chapter.

FOLLOW-UP OF APPLICATIONS

As stated in the beginnilg of thi chapter, at least 200 of thetotal 336 applicarits (291 in the itional sector and 45 in thenon-traditional sector) identifiednot been financed till the tirne o

for financial assistance had

operations in Alwar in Novemour winding up field-work1982. Industries sector-wise

break-up of these 200 prospective frorn the threeblocks is given in Table 1.

I. Block-wise list penaliog applicants

S. No. Industries slctor TotalKishangarh

. A Traditional sectorB Non-traditibnalsector

and resignation encountered byidentification stagqs, then one cansiastic behaviour.

As against this, ingntrepreneurs did not

l6l39

study team during they appreciate their enthu-

blocks, the prospectiveout of the ordinary in

67

8

926

Total J)

A follow-up of these cases

in Ramgarh and Ebout threew lasted for about six monthsmo each in Kishangarh and

Mandawar blocks throwsindustrial scene.

light on the overall rural

The survey revealed that the bllow-up measures taken byRamgarh artisans and were much more.persis-tent and vigorous as compared the other two blocks. Thismust have been dte only to the n that in Ramgarh financ-

accomplished rather speed-ing of the 122 entrppreneurs had tily and with quite p bit of fanfarethe relatively easy availability of

if unintended. As a resulta loan heightened an

average applicantfs expectations. If one were to view therop of their initial cynicismpeople's reaction against the

latteranvt

theflnd

FOLLOW-U? 2O5

getting themsglves enlistedl for just another programme' As

stated earlier, in some of the easily accessible villages, it was

not uncommon to find certain entrepreneurs (artisans generally)

who had been enlisted for financial assistance under three to

four different programmes. As for the beneflciaries themselves,

tbey did not even know the names of the various programmes

or the various agencies implementing them. It was only an

occasional educated person inthe village ota Sarpanch who

explained the different developmental schemes under which the

individual beneficiary nright have been enlisted. Thus we came

across several individuals who neither knew not cared to know

as to who the study team was. In many instances they voiun-

teered their narnes only because the extension functionary, in

the company of the village Sarpanch or some other elders,

begged for their help. We would like to elaborate this point

later in this chapter as it is illustrative of the rural psyche

generated in the wake of multiplicity of prograrumes and pro-

gramme agencies. For the present, we shall only try to give th€

actual account of the follow-up measures taken in each of the

three blocks by the various actors involved in the process ofrural industrialisation.

After the first round of financing in the Ramgarh block inFebruary, I 981, the remaining applicants were quite optimistic

and pursued their cases enthusiastically. For instance, during

the subsequent months-March to July, l98l (-) the frequency

of visits paid to the State Bank of India (ADB), Ramgarh,

by these entrepreneurs was generally more than once each

month. However, each time they came to the bank, they were

turned away on one pretext or the other. Some of the most

frequently employed pretext being :

1) The particular field officer (out of the total three in the

bank) responsible for all types of loans in the concerned village

was either on a field visit (attending camp), or not available

in the branch due to some other reason, or simply too busy.

In each case the artisan was asked to come next week rather

than the next day.2) Each of the entrepreneurs who approached the bank

after April 15, 1981, was asked to come in July as the entire

branch would be busy implementing the Integrated Ruralpevelopment Programme during May-June, 1981'

206

3) The concorned bankthe applicant's village to re-checktime given for srlch a visit was atever, did not materialise in a srn

Each time one bf us asked thehad been finaneed, the responapproached the bank." When thedly asked whether he wason a particular day at aresponse would oome in the tlbusy we are over here-every dayelse...we are overloaded withover this branch is meant basiWould you mind sendr'ng theWe will surely look into it."

The artisans were accordincerned field omcer on athe field officer refused tothey should seek the hetp ofer'ltrepreneurs who dared 1oinvariably got the following"Don't you know you are notthere are special officersinto these matters ? Go to officer

We did not find it fit toworking of the bank. While weon the hopeful beneficiaries andencouraging the fornrer andavoided the prosdect of becomingtions between the bank and itsNone ofthe pending 35 cases hadtive visit in April; 1982.

It was reported to us byapproached during the summativetheir respective cases vigorouslybut when neither the bank nor the(1vhen approached) gave any indi'harassing' the ofrcials involved.visits, each one ibecame recostudy team moved out, the situati went back to 'normal' and

RURAL INDUSTRIALISATION

expressing a desire to visithis bona fldes. Invariably the

a week later. which. how-

bank if any of the applicantsinvariably was: "Nobody

concerned oficial was ooint-by a particular artisan

lime, a slightly apologeticng form: "You see how

there is a camp or somethingbeyond our limits...more-

y for agricultural loaning.over to me next week...?

asked to approach the conday with the advice that ifon any ground whatsoever.

branch manager. All suchthe help of the bank official,

and stereotyped response:

inted byto bother me whenthe bank to look

A'."'ere beyond this point in thept a keen and constant watch

bank, always advising anding the latter, we carefullydecisive factor in the rela.

pective clients. Result.....-tfinanced till our summa_

pending applicants whenthat they had pursued

g the first few monthsIndustries Extension Officerion of hope, they stopped

After the inirial few futileto the fact that after the

TOLLOW-UP 207

therefore nothing would happen, no matter what they did.In the case of Kishangarh and Mandawar, since from the

beginning we had decided to let the various actors involved-the beneficiaries, the barks and the bureaucracy-work outtheir own equations after the lists of prospective entrepreneurshad been submitted to the concerned agencies; even this muchcould not be accomplished.

In both these blocks, except for a few instances in each casewhere the prospective entrepreneurs pursued theit cases persis-tently, most others did not take any concrete steps except anoccasional visit to the concerned bank or government func-tionary when they 'happened' to be in town on some othererrand. Even the more persistent entrepreneurs happened tobe from amongst such villages which were easily approachable.For instance, in Kishangarh besides the Noornagar (5 kms fromKishangarh) shoe-makers and the candle industry applicantfrom Kishangarh itself, the only other entrepreneurs who fre-quently approached the bank, the IEO or one of our teammembers, were from Chamrauda (about I I kms from Kishan-garh). Among these the candle industry applicarit-a schedul-ed caste, was found to be the most persistent, both becausehe was fully unemployed and also because he could easilyapproach the bank. He had had his unit registered, quotation listsobtained, project profile prepared and submitted to the banklong before coming into contact with the project team. At thetime of approaching us only three things were awaited : (a)sanction of the loan; (b) sanction of a quota for purchase ofwax; and (c) release of subsidy.

For the first he was dependent on the bank, and for theother two he was at the rlercy of the industries department.While the former insisted the quota of wax be sanctione{ first,the latter claimed the loan must be sanctioned prior to gettingthe licence for wax. Between these two the prospective entre-preneur had already lost one business season (the 198i Deepa-vali festival in October when the demand for candles is at itspeak every year), and was almost on his way to losing the next(1982) when he approached us. Eventually he did lose out as

both agencies did not alter their respective startds and continuedthe inevitable dilly-dallying.

The experience in Mandawar too turned out to be no better;

208 RURAL INDUSTRIALISATION

perhaps worse, because the in this block were quite farfrom the block headquarters usually not easily accessible.

years not seen the services ofMoreover since this blook had fpan Industries Exfension Officer,inclined to pursue their aPplicously. The only pxceptions fou

people tended to be even less

for rural industries vieor-

of Tinki-Roodi, the carPenters oin this case were the chamarsTodarpur, and the sole appli-

approaching the concerned ba appro4ched one of the Blockofficials.

oodi group of chamars identi-pproach the manager of the

Punjab National Bank, Harspli (

the incumbent's village rightfulwhose alea of operation

comes) even once. It was

only after word about the finaspread, that he lecame a regular

ing of Todarpur carpentersvisitor to the Bloc.k Develop-

ment Omcer of Mandawar. Assame caste as the applicants

BDO happened to be ofrhem Tinki-Roodi, their spokes-

man succeeded i4 persuading the DO to 'influence' the projectbrred from PNB, Harsoli, torevealed that this was being

done as appare4tly many holds of this community inTiuki-Roodi werb former of the branch. As a result

cant for setting Up an autoStrangely, in e{ch of these

they had turned to the BDO,

ing our team to get the names

for the carpenterb of this grouP

visitor to the Block Office and

op from Mandawar itself.the applicants, rather than

, except lor casually requestthese artisans transferred to

SBBJ, Mandawan, could not be much help to them.

Todarpur, as stated, is one the most inaccessible villages

in the block becaruse of sandY

Mandawar is onlY 12 kms.in; even when distance fromrtive ol this, the spokesman

found to be almost a dailvon first name terms with

its entire staff.As already st&ted in the ous chapter, he was the only

one fron amongst all the from his village, who pursu-

ed the matter with the SecretarY, Khadi and Village Industries

Board (KVIB). 0nce tbe ioans sanctioned and disbursed tofour of the appliqants (includingouencv of his vi$its to the Sect

) from Todarpur, the fre-quency of his , KVIB, was also reduced

and oo further efforts were made in respect of the pending five

FoLLow-uP 2a9

cases liom the village. The follow-up by these entrepreneu$

revealed that the toans had been disbursed only to thoseamongst them who had better relations with the person whoworked as a liaison interface between the group and the KVIBofrcial.

The auto-mechanic applicant frorn Mandawar, it was found,had been in touch with the bank more thao two years beforegetting enlisted under the project, without any results. Since hismake-shift 'workshop' happened to be right in front ofboth,the BDO office and the SBBJ, he conveniently increased thefrequency of his visits to each after he was enlisted by the team.

However, even by the Late-Stage Survey of the block iri April,19E3, his efforts had borne no fruit.

Cnaprrn 9

O:ueraiew and Prirt ipalConclusions

Policy Framewofk

The "action-research" studv the Alwar district of Rajas-than was designed with the princi objectives of examining the

industrialisation can best befnancial institutions can

the organisational lessons ofthe available policy options

and measures for rapid rural strialisation.The policy of rural industriali ion in India was projected by

the various policy pronouncemfrom the 1948 Industrial Policv

of the Government beginninglution to the Industrial Policv

Statement of July 1980 and the Five Year Plan 1980-85 asthe principal instfument of empldthe non-agricultulral sector of the

and income gerreration ineconomy. In its chapter

on Village and Cottage Ind

Committee on the Developan Committee) in its Reportsubmitted in March 1981.

stated: "In our setting, with an vercrowded agriculfure sectorand plenty of manfower, the lopment of an effective decen-tralised sector in village and industries rvilh a close

scale industry, is absolutelylies in the fact that it

with immediate effect andme distribution and therebv

pfoblems of poverty and

on Policy PerspeNtive, the Na1

'r ment of Backwalrd Areas (Si

unemployment."re is carried out under a large

OVBRVTEW AND PRINCIPAL CONCLUSIONS 2lt

number of plan schemes and programmes especially meant forthe weaker sections. The total plan outlay during the Sixth FiveYear Plan (1980-85) for the weaker sections is given inTable l.

Table 1. Sixtb Plan public sector outlays for tbe weaker sectionss

Schemelprograntme Afihy in Rs, crores

I. IRDP/NREP2. Hill and Tribal Areas3. Minor Irrigation Projects4, KVIC, Handloom, Sericulture, Coir, and

Handicrafts5. SC, ST, and Backward Classes

6. Minimum Needs Programme (MNP)7. Special Employment Progralnme of States

8. Cooperation9. North Eastern Council10. Backward Areasll. Labour and Labour Welfare12. Social Welfare

3486.64

1030.0018r0.30

1t60,201560.00

5807.00610.65

914.24340.00110.00199.64

271.97

lotal : 11300.94

The total plan outlay of Rs. 17300.94 crores is neariy 18 per

cent of the total Sixth Plan outlay of Rs' 97'500 crores giving

an ildication.of the magnitude of the total outlay on thispoverty eradication programme for the weaker sections. Obvi-

ously, the scale of financial commitment of the nation to these

programmes is enormous and its success is vital not only for the

economic well-being of the weaker sections but to the economy

and the Indian polity as a whole. Or as a corollary, a large

failure on this front could spell a major national economic

disaster.Viewed in these perspectives' the action-research study brings

home stark truths. The study was subjected to, -a

tftree-stage

evaluation: formativi:, intensive, and summative' 'While the first

stage identified problems prior to implementation, the second

recirded programme effects, and the third lauged the overall

effectiveness of the interverrtion and of the social and egonontio

feasibility of its rePlicabilitY,

212 RURAL INDUSTRIALISATION

the rural industrialisation, (2) the governmental

incapacities. It is neitherbi€rarchy among these threethat the sklll problematique

is fundamental.stated, "As the rural industry

place in different fields andindustrialisation will also

elementary needs to smallving techniques and designed

to satisfy the needs of a more ad character,"sThe study indicated that aft more than three decades of

planning, there w&s a profound a nce of anything but the mostin the Alwar district. Thetechnologies had not arrivedent potential of rural indus-

Ironically, Alwar, underearly as 1842 and a college

by 1930.. In some respedts the problem v

the basic social development o[them out of the m[re of illiteracy, ifunctional attitud{s. It was, howeythis fundamental $roblem of socialprogrammes alth$ugh we find it.rin our piesentatiop.

The skill gap rtas both technoAdmittedly entrepireneurial skill a farcamplex task and needs an even mleffort than the tbchnical skills. \done in the directibn of developingwould meet the lodal requirements.

The poor development of rech

reflection of the inpdequate effortsand vocational. trbining programndespite some early starts in Alwarstructqrg in Alwan district poses i

as bigger in the sense thatthe people had not yet taken

, casteism, and dis-, not our effort to <ieal with

development facing plannedifficult to ignore the problem

ogical and entrepreneurial.more difficult and

re complicated developmentery little had, however, beensuch entrepreneurial skills as

skills is, however, a sad -

develop the educationales of the development plans. The present institutionalbig problem as to whether

:

i

I

OVERVIEW AND PRINCTPAL CONCLUSIONS 2t3

the ITIs or the educational facilities for imparting necessary

skills are either irrelevant or inadequate and inefficient or alto-gether absent. As a result, the level of skills'available in Alwardistrict for rural industries is extremely rudimentary and of very ,

low technology, such as basket weaving, rope making. Qnly inrare instances were the rural skillS of a slightly higher nature inthe for.m of stone carvings.

Nowhere is the centrality of this issue expressed better thanby the two eminent Japanese scholars Kazushi Ohkawa andMuttou Tajima of the International Development Centre ofJapan. They stated:

. "The traditional elements which have historically developed.differ from one country to another and we have to payattention to their function. For example, Japan had crafts-

. men's skills of techniques oflocal indigenous industries, suchas Arita, Kutani and Setoyaki ceramic industries, Yuzenprinted silk and Bishijin silk industries; Nambri iron kettlecasting, gunsmith and swordsmith iridustries and others, allinherited from the Tokugawa era. It may be said that theirhighly trained skills and techniques were the basis of therapid adaptation of many sniall and medium enterprises to

- the transplanted industfies during the iflitial growth phase inMeiji Japan."r

While there are many parts of the country where perhaps

the more advanced traditional skills and crafts abound, in Alwardistrict the level of traditional skills was rather rudimentarvand very little had been done to upgrade them over tire years.

. Our Ramgarh experience with attempts to esiablish smalltractor repair units in the viliages ofthe Ramgarh block illus-trates the nature 'of hard core unwillingnesi to take to self-employment and a fear of takirig risks on the part of the localpeople. It was a case of relatively young persons afraid toventure into self-employment and a family and social milieuunable to encourage them or support the progress of newerskill and entrepreneurial development. The failure was not onlyof the action-research project, it was of a whole procesS ofdevelopment after more than three decades of planning.

The skill problematique in many ways reflects the goverf-

214

nrental inadequ{cies in Alwar.Government had launched a majAlwar-perhaps due to its prqmental infrastrucfure forprogramme was less than adequat' Ultimately thp programme ofbased on solid local foundatiof actions that croate the conditi

including powerr transport, cotrained skills. Whlile power had n,

ment' (irregular sripply was), almo

RURAL INDUSTRIALISATTON

c the fact that the Stateprogranme of industrialisingity to Delhi-the govern-

g the policy into a workable

dustrialisation, if it is to behad to be backed by a seriesin which such a programme

munications and above allyet become a major impedi-most of the other prerequi-

can succeed. The$e conditions i industrial infrastructure.

sites were absenf. Transport and communications for instance.were so woeful thflt is was an to travel within or outsidethe district or to convey goods and . Illustratively, in themuch advertised Matsya Estate, the industrialists stilldid not have a direct telephone to Alwar city just six kilo-metres away causigrg imqenseas well as the offioial agencies.

to the entrepreneurs

WepeoPlegrammebenefit

have alrepdy commtof Alwarr It is very

upon the skillJevel of theto understand how a pro-

of rural or even other of industrialisation canthe people of Alwar .tbe local skills, commop-

involved in thB

IC), set up with so muchexpected, did not seem tohed in May I 978 rvereall the services and sup-

surate with the prOgramme of in sation,'.are develope{.Indeed the benefipiaries ofthe pr,lisation in Alwar {,ere going to be

t programme of industris-

perhaps Haryana. This process willof future social tqnsions but mofepeople of Alwar wJere likely to.pay

entrepreneurs ol Delhi aqdnot only have sown the seeds

portant than that the localvery heavy price for it.

. The manner in which the o ial machinery dealing rvithrural indusftialisatlon operated in t district leaves much to bedesired. The multiplicity of fulopmeital agencies with the ir y conceived and implemell-

ies of the various devg-

ted developmental schemes creathe average poor villager was a

labyrinth.The District Inpustries Centre

fanfare and of which so much whave helped mucfr. The DICs lr

so much confusion thatid to gel

Feant to provide qnder .a single

OVERVIEW AND PRINCIPAL CONCLUSIONS 215

port at pre-inVestmen; and post-investment stagps to small and

cottage units. they *ere to undertake economic investigation

ofthe potential for the total development ofthe district inclu'

ding its raw materials, demands, skills and othei resources''identification of entrepreneurs, 'selection of suitable items of

production, registration of utrits, preparation o.f project profiles'

assistancc in procurement of machinery and equipment' raw mate'

rials and infrastructural facilities, makin g effective arran gemeirts

for credit facilities, quality control, research extension' and

entrepreneurial training and rendering marketing assistance'5

The DIC, Alwar, was recognised as one of the better orga-

nised DICs. Our study, however, showed that during the years

since its creatio , the Alwar DIC was yet to reach, performance'

wise, anywhere near'the goals set before it' It had neither been

able to evolve approprlate policies nor develop effective personnel

necessary for ihe ambitious plans of industrialisation' Indeed

the DIC had not been able to develop any effective performance in

identifying the location specific industrial development poten'

tiat in ifre Atwar disrict or even to suggest a strategy of skill

Jevelopment necessary for the industriali-sation of the district'

Ind]eed as the study reveals, the ciedibility of the DIC as

well as other official agencies and programmes was so low with

the people that they were both unwilling and sometimes'hostile

,o ,ir.*. Rural industrialisation is ultini'ately a people-oriented

programme. When the people themselves are unwilling to parti'

"ipu't" ;n the official propirammes, the latter can hardly be ex-

pected to make much headwaY'

We now turn to the third dimension of our problematique'

n4mely, the institutional incapacities especially of the financial

institutions and the commercial banks' In recent years tho

financial institutions like the Industrial Development Bank of

India (IDBI), the Natiorial Bank for Agriculture and Rural

o.u.top-toi (NABARD), through refinancing operations and

the commercial banks, most of which ar: nationalised' have

developed a major commitment to rural development and rural

industiialisation especially for the weaker sections' As already

,fro*olnTablel,thesixthPlanoutlayontheweakersectionprigrutt., was to the tune of Rs' 17,300 crores-a massive com-

-itir.nt. The commercial banks alone have in turn made huge

"o.olnit*"rrt* in several of these programlnes' For instance' by

oygf banks and these commit!!p9s then. The griority $ector r(fro.qt commqrcial banks by Mrand small-scale industries/lusi80 per cgnt. Witfr commercial17941.14 crores bs of Marcb 19tqral and rural-cUm-small industrWhile thg succesq in this sectormi9, social 4nd political dividrfqilple coyld lead to a banking ar

lf":flt.""d h4ve issued Polic' sr

rr 9, soglar 4nq polttlcal cllvid€fqilple coyld lea{ to a banking ar

- tC tlp pqst-g4tionalis4tion I4*l twaP a strgire commitmentrespgnsibilities. fhe bighest echfirm commitmenis to the new p(

RURAL INDUSIRIALISATION

Rural Development pfo-banks lendings stood at Rs.

3,000 erores by the end, of

nmercial banks to agriculture967 vith government control)nt$ have increasingly grownived 41.3 per cent of the loansh 1985 of which agriculrure

accounted for more tlanadvancqs standitg at Rs.

, the exposure to the agricul-segment is very large indeed.uld bring enormous econp-ls to the country, a majornational disastQr.iod, he banking industryits broader social role and

of th€ banks have madeies of rural investrnent 4ndlines and instructio4q down

T49 ggPstion lhat arises outf&r are the bankis equipped andcolqgqal and indefd the complex trlgqCipg to the rurFl sec{or? Thghas been written about so much I

q*€,qttqn an]t furt$er. Sirnilarly, tl9!!: A Ii$ 3ea, pftqq inaccassi$rriqf qsp.qcially sqpervi$gry, probcp;nq-e,qted upqq.1 In addition, the

OVERVIEW AND PR,INCIPAL CONCLUSIONS 2t1

effective or productive, Despite the strong commitmelts made

by the commercial banks at the highest levels, the orgarnisational

capabilities at the rural branch level have not been developed

adequately to rnatch the lending effort involved. As the study

. shows, the branch personnel is inadequate for the tasks, the

skills required are insufficient, the branch infrastructure neces-

sary {o supervise the credit is deficient, and the attitudes of the

branch staff are not commensurste with the management'spolicy pronouncements and commitments.

We do not wish to blame the branch staff. What we wish topoint out is that under the present loan dispensation system thebanks, prpssurised as they are by the government to fulfil theirrural lending targets, will resort to blind lending-ill-prepared,ill-organised and indeed ill-conceived. The resulting damage

to the banks and the national economy could be severe.

Inadequate organisation of.the delivery system in the pro-gramme will thus be the gravest limitation of the bankingindustry to fulfil its tasks in'rural development and rural indus-

trialisation.The borrowing habits of the rural artisan community must

also be considered. Contrary to the popular belief that ruralpeople jump at the slightest opportunity of obtaining financialassistance from public sources, w€ found that in Alwar the poorerartisans were very conscious of the fact that a debt is a debt,be it from the government, a bank or a bania. It should be

avoided as far as Possible.Furihermore, most of the rural artisans and the other weaker

sections calculated very carefully the total cost of a loan notrnerely in terms of the declared rate ofinterest but what it wouldactually cost them for getting and repaying the loan. Since thegovernmental or bank credit invariably entailed several visits,often five to ten, to gct the sanction, and as many for repay-ment, many of the rural borrowers computed the daily wages

lost, the travelling, and the incidental costs to calculate theeffective rate of interest they would actually have to pay. Invari-ably, the effective rate came to prohibitive levels.

On the other hand, the traditional and much malignedvillage moneylender, often a bania, delivered credit at the door-steps of the borrowers with the simplest ol procedures, in ar4anler understood by the local people, providing the smallest

218

to largest amountb according tobother of commUtidg to a bank orloan or for repaym$nt. Above all,

banks or the goverrlment. And flrror rhree per cent pef month of mort

RURAL INDUSTRIALISATION

s, and saving the entireo(tce either for

moneylender's treatmentof the borrower wab considered far ore acceptable by the ruralpeople than the high and mighty itudes ofl the bank staff or

the recovery tactics of thethe governltent ofrbials. In so far amoneylender were concerned, the people felt that it wasno worse than that of the gove ent or the banks. In fact.most respondents fslt that the mcderate of the reasorls for 'default' i

ylender was more consi-Ioan repayment than they, the effective rate of twolenders was in the eyes of

the respondents lebs than what tgovernmental borrolwing entailed.

These observatidns lead us again to the organisational issueof delivering credit to the rural by the banking systemabout which we have already writteat the operational ldvel arises from

earlier. Many a problemively trivial matters and

could be easily resolved without m effort or exffa cost.

The Positive Findings

Our catalogue of the problems s not in any way detractgs. The creation of thefrom some of the fiajor positive 1

financial institutional structures at e district, block and everr

change with tremendousthe village level is at once apotential. The geographical pen ion of the countryside by

soclo-economrc lnlrastruc-will be increasingly possi-present variety in Alwar

only a few years ago. Theproblem of obtaining credit is a ajor impediment to rural

network in Alwar, whichdevelopment. With the ruralhad 68 branches exdlusive of-16 perative Bank branches as

of economic financingearlier.ons in Alwar and the

from the government toit-ratio is leading the

effective rate of bank or

g opportunities. By their

OVERVIEW AND PRINCI"AL CONCLUSIONS 219

local presence, the banks in Alwar were also helping the ruraleconomy to get better integrated with the national econonythrough the various linkages of commercial, trading and indus-trial nature.

Our study also suggests that there is immense and imme-

diate potential for the development of the traditional ruralindustrial sector. The Alwar experience indicates that the most

important problem faced by this sectol is not only marketing as

is generalty believed but also credit' The village moneylenders

and the middlemen were able to block the marketirg channels

for the rural artisans only to the extent that the latter were

dependent on the moneylenders and middlemen for ,their credit

needs especially to buy the necessary raw materiirls.

The Alwar results show that given an assured supply ofperiodically replenishable credit at moderate rates of interest,

the rural artisans were quite capable of devising their own

marketing strategies and selling their produce only as and

when it fetched the maximum price. Commercial bank creditsaved them from selling tbeir produce at untemunerative prices

during the 'off-season' when they needed money most for pur-

chasing raw materials as well as for their consumption needs.

They could now sell their produce whether in Alwar or else-

where when they got the maximum price.

The Alwar study also clearly derironstrated that the small

rural artisan was a good investment risk if carefully selected

and supervised. Follow up studies demonstrated that most ofthe borrowers used the credit cafefully and efficiently and had agood repayment record of the dues. Indeed in most cases the

bank credit had a sizeable 'income-effect' on their earnings. Amajority of the borrowers increased their earnings by 50 to 75

per cent, thanks to commercial bank credit. In the short run thishad no mean effect on their consumption and savings levels.

Indeed the fact that this class of people could be broughtunder the umbrella ofthe banking system and thus integrated

in the national economy was a mas$ive gairi socially' economi-

cally and even psychologically. A sust[ined effort to reach such

people in the rural areas would lead to a matked change in the

attitudes and performance of these people.

We were generaily pleased that barring one community ofshoe-making chamars which had given up their traditional

220 RURAL INDUSTRIALISATION

vocation due to social stigm4,munities were both optimisticcrafts to pass on lhe tradition to

The Failures of Pdlicies

the other groups and com-confident enough of their

younger generation.

In its report on the StrategyCottage lndustried, the Nationalstated that '!the ntrmber of thosedefinitely shrunk during theceptual problems Of comparing thecan safely conchqde that contrary

figures in the Census. onbto our desire, the sector has

certainly not proviped grcater emThe stated objectite has not beenfar to seek. The p{oblem has not

technologically mQre advancedtiveness of the backward rural

Development of Village andmmittee on Backward Areasmployed in this sector has196l-71. Despite rhe con-

ryment over a wholg decade.The reason is not

assumptions are fullythere is little prospect

limited to be able to com-industrialisation. Even so

products, the unattrac-logies, the low income

al crafts, the woefullythe poor delivery system,.

stated harshly in theleast in Alwar. As long as

studied in any depth andthe remedies have not been souglrt

This, in essence, represents the bilure of public policy withrespect to the devdlopmept of and cottage industries. Thefailure relates priqarily to the wrorpresent policies ar€i based: Uritilexplicated, examirled and reformqlfor any major imp4ct on the entire

The Alwar stud]y was essentiall.ment on the overalfl policy of rur4lsome of the lessong are apparent. Ithat reservation of a few items for

g assumptions on which the

instance, the assumptionsvillage and rural ind ustries.

like the DlCs to dealprovisions in financial termsis sector dealt with the most

The village artisans andcould take little comfort

constant onslaught of the

potential of severAl of the trainadequate locally available skiwhether of the gov{rnment or theface of the rural in{ustrial sector,these issues and the problem a already explained earlier

OVBBVIEW AND PRINCIPAL CONCLUSIONS

are not carefully .studied and attended to, as the Sivaraman

Committee has pointed out, there is little that will happen to

open the prospects for the future of rural industrialisation. Infact, the rural industrial sector will recede putting more people

out of employment in this sector and creating a greater imbal''

ance in the rural economy. It is in this context that the late

Prime Minister Mrs. Indira Gandhi's comment that many exist-

ing imbatances in the industrial map of the country were, "aresult of the implementation of the very scheme which was

eipected to develop backward areas industrially,"T (emphasis'

idded) assumes a poignant reality.The Alwar study makes it quite apparent that low techno-

logy-iow-skill village and rural industrial sector can only have

a bleak future. The Second Plan s hope that "As the rural

industry develops, technical ohanges will take place in different

fields and correspondingly t'he pattem of rural industrialisationwill also change from simple crafts meeting elementary needs to

srnall industries based on steadily improving techniques and

designed to satisfy the needs of a more advanced character" has

been belied.The time has c'learly come for the planners both at the

national level and at the state level to take a fresh and hard

look at their policy approaches and assumptions and to take

rernedial steps before the'rural industries collapse under the

economic and technological onslaught on them which is but

inevitable in,.p fast develloping country such as India. Quitesimply, rural . industrialisation rvill not succeed in its present

condition of weakness. It will succeed only when it has a strong

base.If remedial steps are not taken soon' the rural industrial

sector will push out more and more people towards the urban ,

areas creating more congestion, squalor and population concent'

ra.tions where they are most unwanted. On the other hand,

uirder such conditions, the programmes like the IRDP involving

huge outlays,and commeroi4l bank credit will collapse bringing

the national economy and the commercial banks under great

strain.

221

In the absence of adequate, gth amongst the ruralpeople in a district like Alwar, ainevitably falls on tte governmentthe State level, especially the latter.

deal of responsibility

look at the various policies andat both levels has to

p and upgrade the skills ofof the appropriate level of

skills is especially important in the -traditional sectors. Theupgradation of the local skills istraditional sector.

ial for the survival ofthe

The existing eCqcational and institutions and facilities

222

Foci for Action

Tbe problems we haveissues we have raiSed bvremedial action at least in Alwar.tunity of listing some of the action

rural industrialisa{ion, the goinitiate immediate action to d(the local people. lThe develop

in the Alwar district are simply notnumber of the Technical Trainingto put it strongly, 4 farce. The facltraining facility id a traditional st

in Rajasthan or evon in Agra speatr

a craft at the Centdal Leather Instto non-option for the local people

Alwar district. And yet neither theGovernment had lecn galvanisedtowards the development of skills re

The institution4l infrastructuredealing with electridity supply, indu

RURAL INDUS'IRIALISATION

earlier and the varioussuggest the crucial foci for

ven so, we take the oppor-

both at the Centre and atApart from taking a fresh

basic policy framework of

up to the mark. A largeInstitutes in the. district are.

we could not get anylike leather in Alwar. or

volumes. Training for suchat Madras is tantamount

Alwar.

local DIC nor the Stateto any worthwhile action

to Alwar.the State, Governmentlicences and permits,

The experience of the industri at the industrial estatesin Alwar'clearly indicates that even br elementary mechanicaland other skills, they had to i labour from outside the

of

incentives, credit, marketing, etc., hardly the infrastructurethat will help the gnowth of the industries in Alwar. Eachone of them andtheir procedures to be studied and reme-dial action taken. While such ive action is unlikelvto take place through the existing itico-administrative leader-ship, relentless prespure on the I

so that the benefits of the proglapparatus will be necessary

at least percolate down

OVERV'EW AND PRINCTPAL OONCLUSIONS

to the local grassroot levels, even if partially.

223

More specifically the institutions like the DICs should be

compelled to perform the functions for which they were design-

ed. If they cannot develop location specific programmes of ruralindustrial development, especially technical and other skills, thequestion should be asked whether the DICs serve any usefulfunction.

On their part, the comrrercial banks' can do a great deal'more than they have done so far. As commercial institutions,they aie far better equipped to help the rural industrial develop-ment of the country than perhaps the government. They are

and should be in much greater contact with the people con-cerned and should be an effective link between policies, tech-nologies and their delivery to the rural people. This could be

in most areas, including the programmes for skill development,.For this purpose, the banks have to organise themselves

immediately. The existing organisational system at the ruralbranches is inadequate to deal with the complexity of rural andvillage industries both traditional and non-traditional. The staff-ing itself is inadequate. And more so the type of skills requiredfor the development of rural industries. Here again, the bankswill have to develop more location-specific organisations.is useful in Alwar may not necessarily be useful, say,

Bikaner district of Rajasthan.The current strategy of administrative decentralisation in

the commercial banks must be followed by a further organisa-tional decentralisation to tako care of the local needs for bank-ing services and facilities. In particular it is desirable that train-ing facilities for field staff are developed closer to the field levels.

Since the needs' of rural industrial skills vary from district todistrict' and sometimes within a district, much more trainingeffort including or-the-job training, which is location specific"is desirable.

We need .hardly re-emphasise the problems of attitude ofbank personnel towards rural industries. As we have repeatedlypointed out in the study, the policies. of the top managementsof the bank vis-a-vis the rural sector, especially the weakersections, are not adequately shared by the local branch staff,Perhaps they have some reasons for their reservations. Butuntil this hiatus between the top managements' policies and the

Whatin the

224

attitudes of the locd branch staff islending will either $ot take place actake pldce blindty ulnder targets fixe(

The problems of rural branch inlport arrangementsJ rules, regulati(of stationery and afpl.ication formdupon in the text. We only need toimpediment and commercial instituaction or even slow laction to resolvaction or even slow laction to resolmcasures which ade well within

field statr sirnply {oes not work.: slightly greater ruial background.

, personnel is absolutply the sine-quo,nately, there is enoqgh experience l'lop the type of skills needed. Theland the banking in{ustry is well ad'

lnated programnoe'pf rural and s

and an enlarged training progrrmm

RURAL INDUSTRIALISAfiON

resolved, much of the ruralrding to the plans, or witl

by the government.

ircluding trans-prbcedures, even absenceve all been commented

that each of them is ancan hardly justify non-

them. They call for simplecompetence of the banksor any external agency

the right staff in the ruralboys and girls as rural

right staff necessitates aabove all, training such

of rural banking. Fortu-.in the country to deve-

nowever, rs enolmousto have a well .coordi-

ni.urban based recruitm€nt l

for the development of thelrequisite skills.I And last but notlthe least, the of .the people theniselves

backward area like Alwarare few, The educational.

;and what they ean db. Obviously, in

are rather poor. Evenmore by availing of themeant for them especially

And although it is not .

for the variouson would be worth-

,while.

: UnfortonatelYr tht large illiteratd economically marginal, hbwever, they have

the case of the balket

:the countervailing pdoples' institutiitsocial and economic I developmentaliso the people can help themselvivarious benefits urdbr the programn

for devqloplng thei[ skills and abi

exactly easy, an effoft to organise

activities involved in rural' indusl

hnass of the Alwar

have been significant.

OVERVIEW AND PRINCIPAL CONCLUSIONS

Policy Options

The policy options in Alwar thus relate to specific action

towards the development of new skills, upgradation of tradi-tional skills, institutional review especially at the State Govern-

ment level, specific steps by the commercial banks towards

greater organisational preparedness, and perhaps a greater effortby the people of Alwar themselves.

While some of these steps will help in Alwai, it is abundantly

clear that the policy of rural industrialisation needs a fresh lookalong with all its assumptions. We would also do well to take a

leaf from the remarkable Japanese experience of industrialisa-

tion of the backward areas as well as of rural industrialisation.All this requires a greater consciousness of the issues andproblems involved before making policy pronouncements oreven financial provisions under the plan. Since the problem

involved has massive implications for national developmentgenerally, but more particularly for rural development, a freshreview of the policy is now desirable.

NOTB,S AND REFERENCES

l. National Committee on the Development of Backward

Areas, Report on Yillage and Cottage Industries, New Delhi,the Planning Commission, 1981, Para 2.1.

2. Planning Commission, Sixtlt Five Year Plan (1980'85),(New Delhi: Planning Commission, l98l), pp. 57, 19O'

12.10 and 223-14-10.Planning Commissioq, Second Five Year Plan, New Delhi'1956,Para 429.L

Quoted in National Committee on the Development ofBackward Areas, Report on Village and Cottage Industries,1981, Para 4.10.See National Committee on Development of BackwardAteas, Report on Indusftial Organisation, Para 6.3.

National Committee on the Development of Backward

Areas, Report on Village and Cottage Industies, Para 4. l.Prime Minister Indira Gandhi, Times of India, November5, 1982.

225

J.

4.

6.

,7

Cnaprnn l0.

Epilogue

llaving spent a good part of fourProject, it was found necessary tl

years on the Action, Researchpursue the findings further.a series of discussions were

ministries and the Planningproject report was widely

November-December. 1983.

In addition, even within therounds of in-house discussionsines ofthe studv had several plngs study had several poin the fitness of things to di

finally organised a meetingthe CPR Proiect team and

of the Planning

Industryn Comrdrerce and Ffor Rural Development,

The State Bank of India.which had actively participatedthe 'action' part of the Project,

funding and operationalisingalso represented by three of

its senior ofrcialb. .' At the outset Shri B. a former Cabinet SecretarvCentre for Policy Research,

logical study and invited theg session", He went on to

findings and practical prob-isation programme. First of

to the fast dwindl-ing numbers of active craftsmen over the country and stress-

cd that there tvas an urgent

for Policy Research severalheld. We felt that the find-imptications and it would be

them with a select group of

to evolve a suitable policy so

227EPILOGUB

as to check' if not reverse this trend'

Expressing his concern at the loss of credibility and the per'

vasiveiress oi corruption in public institutions at the grassroots

i"u.t u, ,tto*o by the Alwarproject, Shri Sivaraman said that itwas for the planners and the policy'makers of the country to

ffi;;i uod *.nn, for correcting this situation' Among his

other observations some of the substantive issues of the rural

irJ"t,tiofit"ti"n effort raised by Shri Sivaraman and put before

the group for a discussion were:'^^'ii-6rg"oiration for village and tiny indrrstries from the

natital tJvn to .district level, is in a state of flux-' How can

;hh-;; resolved andwhat specificsteps needto betakenfor

this PurPose?"'^;;-Ti; District Industries Centres' in spiteof claims made

bvthestatecovertrments,havefailedtodeliverthegoodsas;Jr;;;t;ill;;. and tinv induitries' How can this situation be

."?."t"0, uid *hut concrete policy recommendations can be

made in this context?"'-ij'--Spt""a of technical know-how being the only way that

the rural industries programme can be made viable and sustain'

"a. ""0 ,ft" existing infrastructure for this purpose being highly

;;il;l; irt.,u,t, what specific steps ne€d.tobetakento

il;;it;- and strengthen the existing institutions' and what

;;;; modalities for imparting trjchnical skills to the rural

vouth can be tried out?'"-ar 'rn.

ar*ar Project Report and other suoh€xperiences have

indicated good repayment records of small loans by artisan

""l"tt"i,iIt, yet ihe banking industry has not geared itselfto

;;;i;i,h this sector' In view of this' how can the banks res'

p"ra t" ".

," effectively meet the credit needs of this sector?

''-t Sio.. the credit needs of this sector are very small' even

p*ty, ti":t"i"f cost of procuring a loan tends to become prohi-

bitive and therefore, acts as a diiincentive for individual crafts'

r""i" "ppt""ch the banks for financial assistance' In view of

this, can an alternatlve tntermediary system of-small- loans-be

;;;fu for the rural areas? Is it viable and if it is' then what

specific modalities can be worked out?"";'-;;;; of considerable geographic penetration of rural

"r.u', UV

"ot*ercial banks, the failure ofthe banking industry

i" ** ,. the needs 9f YiUagg industries has been due largely

RURAL INDUSTRIALISATION

to ineffective persDnnel. How this be resolved? Can aparallel cadre o[ lersonnel to the rural branches be deve-loped? If np1,, what alternare specific policy options areopen to the countfy to resolve the

These observations by Shri Si were followed by adetailed discu.ssion bn all aspects the rural industrialisationprogramme. Some of the morb i t responses to the isstresraised above and observations bv various participants of thediscussion were as follows:

Several participants felt that fi long the village industriesthe guidance of any depart-sector hds remained virtually wi

ment at the national level. The and Village IndustriesCommission which is officially e of this sector has been forreasons best known to it, g nearly eighty per cent ofits efforts and resources on g khadi alone to the derri-ment of other rtral crafts. As a result of this lop-sidedapproach, the rulalconsiderably harrfled.

programme had been

It was pointed out by the of the DC, SSI'soffice that in orden to strengthening the village indr[stries Eector atGovernments had been advised toin each of the Distnict Industries

post was filled, tfre area of villt€main unattended at the district

infrastructure for promot-district 1evel, all the State

three Project Officers(one of .which would

industries would no longei

be responsible for looking after aspects of village industribsprogrammes). But, in spite of reprState GovernrnentsJ had heeded'the dvice. He.felt that once this

reminders, none of the

fic programmes for ..the

developed.

and viable location-speci,of this sector would be

The inadequacy of the existing infrastructure for technical{nanpower training was dlso in great detail. Whilethere was no diverqity of opinions to the desirability of consi_

itutions (the Polytechnicsparrlclpants were of the

greater experimentation in

,Schemes, Training of Ruralthe Master Craftsmanfor _ Self-Empioyment

(TRYSEM) Schemo, MobilE Trainthe.like,

Carnps . Programme and

EPTLOCUE 229

The failure of the commercial banks to tackle the problem offinance for the village aod tiny industries also received consi-derable attention. Participants were of. the opinion that. thefailure had been due largely to the absence of a well-definedpersonnel policy for manning the rural branches. It was alsopointed out that dichotomy between the policy pronouncementsmade at the top management level ofthe banking industry andthose pursued at the branch lgvel, was a direct result of ineffec-tive personnel unused to the rigors of village life and unw.illingto stay and serve in the rural areas. In view of this, it was

agreed that the whole question of evolving an alternate cadre toman the rural branches treeds to be thoroughli studied andeach of its implications gone into in much greater detail so as tothrow up a viable personnel policy for rural branches,

At the end of the discussions Shri Sivaraman felt that sincethe Seventh Five Year Plan of the country was in the offing andthe sphere of village industries so vital from .the point of. viewof creating additional employmenl in the rural areas, there wasneed to discuss all its major aspects in much greater detail. Ftre

therefore, proposed that a broad-based national serninar be heldfor this purpose in the near f,uture. It was also agreed. that thenational seminar should be held. under the. auspices of thePlanning Commission.

This meeting at the Centre for Policy Research thus serveda basic purpose of direct dialogue with the policy-making levelsof the Planning Commission, the concerned Union Miaistriesand the Banking Industry, thereby creating an awareness amongthe policy personnel of some of the pressing problems of ruralindustrialisation.

On its part, the Planning Commission agreed on the need tohold .a broad-based seminar on rural industrialisation and tohost such a seminar in New Delhi. The problem areas of ruralindustrialisation were divided for the purposes. ofthe seminarinto four sub-sectors. These were:

a) Policy Frame and Infrastructural Support;b) Technology and Training Needs of Rural Industrialisa-

tion;c) Marketing; andd) Financing of Rural Industries.The seminar was scheduled for October 2l-22, .1984 and was

230

designed as a 'path-finding'objective was not merely to

RURAL INDUSTRIALISATTON

for the Seventh Plan. Itsthe overall parameters of

rural industrial policy, but also to suitable organisationalchanges at various levels for g the objectives of policyduring the Seventh Plan period.

The sub-groqps appointedoach of the asdects of rural

the seminar delved intoand made some

ial base in the rural

incorporated in the seminaron "Financing of Rural

significant reco$mendations would have a far-reachingimpact on the fural industrial of the country for theSeventh Plan period. The serni was held on October 2l-22,1984, as scheduldd, at the Vigl Bhavan, in New Delhi and aseries of recorimbndations were

In particular, the Alwar pro recommendation for suit-ably strengthening the District Centres (DICs) for thepurpose of evolvi,ng and operati ing location-specific indus-trial development schemes for rural areas, and buildingessential potentidl for smooth of technology, was verywell received by the seminar, S

for creating a lechnical and en

areas by considerfably strengthenir

milarly, there commendation

the grassroot infrastructurefor technical training, was alsorecommendations, TheIndustries" deliberated at great length the entire question ofpersonnel for nlanning the branches of the commercia-banks and recomhnended that it necessary to take a sefiouslook at the recruitment and trainirAnd finally, the rble ofthe State G

policies of these institutions.in rural industriali-

sation engaged the attention of concerned group for a consi-derable length of time. As by our'action-research'project, the need for a ing study and an immediateremedial action fbr suitably ining the institutional infra-stnrcture of the Srtate dealing with electricity, indus-trial licences and permits, credit and marketing etc.was also very well reflectedseminar.

irl the recommendations of the

Thus. some of the more recommendations of theissues of rural industriali-Alwar study implnging on

sation, were endorsed by the even when they neitherpretended to be qriginal nor new

Some of the dther salient reco of the four sub-

231EPILOGUE

groups which could give a new direction to the rural industrial!

salion programme of the country, were as follow$l

the sob-group on Policy Frame and Infrastructural Support

was of tbe view that the States should continue to have the

primary responsibility for promoting rural industrialisation' Iteuen exprest"d the view that the question as to whether new

institutional structures need to be created at the State level

specifically to cater to the needs of this sector, should be left

"'rrii*fv to the . discretion of the State Goverdments' The group

felt that there should be no central law regulating the setting up

of rural, tiny and small'scale industries and recommended that

"high priority" should be accorded to these industries in the

matter of provision of funds, supply of raw materials' and other

inirastructural support. Recoglising the lack of suitable insti'

tutional infrastructure for a proper dissemination of appro-

priate technologies as one of the major stumbling blocks' the

iroup .r.Ongly recommended the linking of the Science and

' iechnology Councils of the States to the Council for the Ad-

vancemenl- of Rural'Technology (CART)' of the Government

of IndiaThe CART was also assigned a major role in the rural

industrialisation programme of the country by the second sub-

g*up on "Technology and Training N":{t]. . This group

I.pttati.ta the need to have a single Central Ministry of Rural

Iniustrialisation which would have the overall responsibility

io regutate and monitor the activities of the Khadi and Village

inAuJtti.t Comrnission (KVIC), the Council for Scientific and

industrial Research (CSIR), and the CART' It also discussed

ut f"ogtft the question of organisational set-up for Technology

and T-raining nt th" Stut" and district levels and recommended

ttre setting up of full-fledged Departments at the State level and

ie"trnololy C"rrtr", at the district level' It even recognised the

importance of the extensioh agent at the block level who should '

ooi oofy disseminate the technologies but also give a continu-

ous feedback to the District Technology Centres'

The sub-group on marketing felt that one of the funde-.

mental neeis oi the rural industrial sector was to have a

comprehensive reservatios policy for exclusive production of '

,orJ p.oau"t*. It however, felt that reservatiorr breeds a false

.J"tl of t."utlty and thereby kills initiative and drive' There-

232

foro, it rccommended fr€eeach sector. Besi{es, the grouproartr in. respect df artisan grolrial inputs to the incumbents,prrchase of the ptoduce of thiscies was also essential at thoThe group howevor felt that evenof facilities was insufficient toIn srder to overcqme its handirbind itself to any Bingle markot,its search for ne,w markets.the government should pay itssteps needed to take care of thesedtor: (i) devisiug ways andfessionalism in the marketing ofup of separate institutibns atdirectly or indireclly servjce the

, and marketing of produce.The various issues connected

of finance to the vlllage and smalland delivery systems, engaged theA near absence of reliable dataof this sector was oonsidered to bewhich frustrated all attempts atfor this sector. The groupmarking of al,locations for thisfelt that the financlal powers ofshould be iacreased in the issuegroup also felt tbat in order to gettiotrs to play a prominent role inquate mechanisms at the di$trictment of loans need to te .evolvod,dubisusness ofthe district creditded that the credilt plans shouldrequirements of tlhe village,addition, the group recommendedcover to each of thp entrepreneursAnd finally, the group expressed iand above all othet measures. itcqsiig futd for meotiog the credit

RURAL INDUSTRIAI,ISATION

between units withinthe cluster app-

and inparting of manage-also felt that preferential

or by the governntent agen-stage of its development.provisioa of this packagesurvival of this sector.

, it should therefore neversecure, but continue

all these steps could help,to two most important

marketing problems of thisfor introducing pro-

'produce; and (ii) settingdistrict level which could

in the supply of inputs

the subject of availabilitysector, its adequacy

attention of sub-group IV.the actual frnancial needs

one of the main drawbacksic financial planning

recommended the ear-,as a first step. It also

branch managers of banksquantum of s*nction. The

State Financial Corpora-industrialisation, ade-

for saoction and disburse-ing its concern at the

it strongly recommen-ve a specific focus on the

and the tiny sector. Inhighly subsidised insuranceho adopt new technology.unanimous view that over

essential to establish anof the cottage, village

EPII,OGUE IJJ

and the tiny sector.Through a comprehensive and critical review of all aspects

of rural industrialisation, the seminar not only facilitated a trueassessment of the extent to which the government's policieshave been conceptualised and operationalised over the years,but also suggested a series of measures to tone up the institu-tional arrangements for organising production and distributionof the decentralised sector during the Seventh Plan period. Itsuggested specific policy thrusts and recommended a series ofmeasures for ensuring effective institutional arrangements forsupply of essential inputs, cheap credit including consumptioncredit, constant upgradation of techniques. of production andskills, consumer-oriented responsive marketing strategies andabove all, a more personalised service.

Ttre task, lor obvious reasons, is a stupendous one and itwould be wishful thinking on our part to think that the path torural industrialisation is now clear. But, to the extent that theseminar eschewed the more tempting option of shying awayfrom it and decided to face the hard facts, we at the CPR feelrewarded that the findings of our Alwar study helped in somesmall way in at least creating an awareness about some of themore serious issues involved in rural industrialisation. Ulti-mately the nation will have to make the decision whether, andif so, which ofthe rural industries have a future and how. Ifnot, what options are available to provide the necessary employ-ment opportunities in the rural areas and with what techno-logies.

RURAL INDUSTRIALISATION

F\OOO\ |

"rlll

-tlll

lt-ll

tar\oNi I

*llll

*-lll

ol oo \o \o I

(\ a.l

(\N;: .f

a.t N

t.i ei

C) ralrl\

('i di

o0

si sEJC!G,-S oo= I E.-.s E; EFt.E i.EAf sr stl..i c.i

€:o"EESgf=gsEi -' .i .d .e ,.;

+lr l!

0$i-1 |

; 39H,

$*fEF;<';*;

-lSI: t$

I

F lri-l,I.=:l-lx<t\'-ltl*o lfel* E l*i sl*,lS ^:l--ltsl"E sl

I!l'i lf.,XlsslE;l'r

^rl\ltE I-el

I$l

S l"6lI

slI l*,{l\l

I*l! =tb.E I

* 'il"!- -lr r.l

a*l*

$=

s

E

^Q

Ita

(D

(D

.9

X;

=o.!

E

o

234

F .n a.l

.ll

t-l

rar FN

lHltl

__ I

s{*F\oan

*_ |

APPENDIX

:toooi\oa\

l'l

l-l

N-'

tll

lll

-ll

3N I

lll

lll

-* |

-lt

ttt

-ll

<NF- O\N-rt|ratN- F a\

\o Ncj | | I i.{

235

I

ll

iil

N-l ll

{ r..n - I

r*lll

-- | - I I

rN- .o- I

I o\o - I It:

l-- .ll

ltl

*-tt

tltl(.|*_|

co.f * |

-llr

cr-H I

-trltrl-

lll'

oll-

-lll

lllo

crN lcr

s l:r

lll-

-ll'

a.l t- OI

I

I

Nd

Nl

E€.$e'tsr,t F- .i h .e e .e

Li,g -'s . i F Eo geg!-.S!9E-?=rE€ks i;Ei i*** EE$* i-*E€ I sg EE E "S;iEE l::3 is:: S'FE*i i::5:.:ECi -l oi ni - ci ai .j ci 'i ' ld ..i ci ai + :tI, ..l c,i "i + *;

RUNAL INDUSTRTALISAIION

alH

II

ll

tl

ll

il

tl

tl

tl

F

N.r I

l-. \o \o

.t+

-l'

-. I

al ,o I

l-l

\9 a.t I

.. I

oo

a!N.;

ea\0 ri1.; .,i

X8Nt.;

vat

*f<'i

-+

v't ii..t i

q\N$

k&

*g € i'E

gFFg;€$5ff8vi <.1 -; oi- Ci : *;

'lll'*l

lfsal

s.$;a€ts*,'i q$g; E-=EEH <;"i; i;oi;

a

o\

t.

\o

s-

.

e

€

.lslvt"l

ql

tsl.o

t,l'{l'dls

t_

q

e

Isa

:sv.!.

6

^:

st.:.ild{

alrlSF.P itttts

c;r,i a

236

it)

".i E

:.8oE(J.

()x=;!(.)

^'=1.=

a)

oal

APPENDTX

9,-*

-tl

Nll

*ll

III

*l*

ol vr \o

-. I

iit

*ll

rn a\ 6l d

-l^l

237

t ld\go

lll--

-ltr*

.l l-o-

*rrtl

lll--

* | l-f o\

c-l Itl

'- |

-- |

ltl

dll

-N I

-ll

ttl

*li

ql .f I

iDcJtr,.' .o - ".'.E E

'9ID;4E

.l^l

tlllo----fr.;€8

^E\o .,r .i .\.& H - $

!tr I

.DlN-EP.Y AO

o

tlll

| | l.r-

tlltl

-la'.,HirEF (lx I

I

6l

Its'*e.s!3SHgFE.5 q,.r 6 5{O.n\a-

*tt*

s?.$rS,'ibo't*iE

ssss Ssss $-$ir^c.{.,.'9 ^^-9 abF'g:'3o-,6 ;:dclr6 EEF><

-i.i ; -.,r'..i Ei ; o.i ; +

RURAL INDUSTRIALISATION

cao

ll

orca

--t

a- |

.r ,., I

l-l

l--ar

I

-- |

=9'

t-l-ll

N'f I

FOO;.n

cr |.l

.i c.i

ci ..;

sq.jri

oq.iF

\o9..i .o

ef8q8q-.: F-

8e6iN

xx.i+

e.i c.i

.'l r:

F\O

l'l

|.l .n- (\ co

-O I {\o

Ni\i $c{

rll

ro- l

l-*

l.'nl

Svoo

t-l

l-l

-l.'''it co al

€Cl

ooo

I

t-

€ **g.s*rs+nEg sgf;Ed^*.d tri -:c.i

EiE€g?$i;sg,.; U: "i Ci .i.i h

\o

9\

N

E

=\

.s:s:\EF;l 6

t\t:!

T\b-xt:di

.:

x

*-x-. .:i'i*€.d

F.SE*=d rR

sss-SS

t'Iq!

*!:sssiiP

I

I

glo1

q)

b(I)

:oit

\ia:

X

(t)

AP?ENDIX

o\o(n

ltl

ttl-tl.ll

-l I

'l^-ll

ltlll-

tlt

trl*tl-ll

F- --ll

'll-- |

ttr*l-.rll

.rli

+l-

*!fOi

.- | |

0oao-Q

rtt--lt-c{ier

Hr I.r

rtt-llll.r \o

-ll-

llt-lll\o..,

I

ll-lF- N.n

I

vNco I

".lllN \O\9

|

.o .,t cl I

.n <.n I

EBrt' r.r \o - 6'6- =trtt t)

€^(!

-!! E.-sggE!,!(IX.66oSEEi)&>E;? ^ <, 6l.iqpiE6lrlOco\O-elO

tr .-: .i di + ,ri

tllttll

tll*r*l.o- | *trN

I

^..1 i i .ool- ;\'e's i^.isgt s E=

Et$$ t*E:€a3:5 Sf;EF€",

.., .t rd ..: ..i ..i +

.N

.3

Yeesr $F*::t d "fr

,6

i .i .';

tttr

rllliel.ol

Nll- I

239

RURAL INDUSTRIALISATION

iaerFoo<

lll'-l

l--ll

q9

qn

6n

oi;

.\i (.l

Sq.i|.|

^cc.l <:

jl-

+;Y-

qP

cgr'! oq

PEir9g=

rEE9 Pts ct .=^a; t3tEa ?.F

A'EE E

(\

-llco-

|

"rll.rll

l-l.rll

*l*

t-r*ll^- I I

lNdi I

t*trl--trl

l-l*l

rtlll

lt*ll

rl-rllNi.-rd

,, gq

S e*E€=E5E6joidi{v;

-ll

-ll

.\ll

+l-

??2 E_>r 2r l9

",38€ ESRs; N<-:d..i F

I

d

a\

N

\o

s-

.S*dnS-En;!

i:agd"s>(!

siS-iF-l !

"L

v'i

gs=si

U

4s\ii 6,

s€\t

.Fs$.:St:

Di*

240

.)

.E

^9;t)FI:

fi!AO

=:.,

Ch

24r

t(lIEItr

| (t)

l:

,.'1

Md

X

o(,

ra

(\|

ou

iD

OOOec.,lc.l

tlt***I I l*.\ I

ittltlrtlt-l

tll--l

ttl*llttl.ll

llli..l

llll*l

rrl-ll

ttl--llll*--

€r e

ii '^

.!! o. " l.^ o ofa ol€EXo !lgsEE. El

ri a lrl+9o.ov)olOcn\0rN\OlI

-t ..i .i 1q: vj ,d I

b.9o d-qkn \ iEtl<E -e oo9'i(

F*E t*.9:E S:ob XXE.f > IJG= SEF}< q

t- cr .i ci ,.,i ..i ..i .i E;

$ NOO

lor-

rtl (\ N.n <

PPANDS(

RaO hr *

-lllllNc.| | c.|-.

I

'll_-

|

l- olii I

ll a:ori

I l- :t 6 r{..1

rll--tl*lt-t-l

||_*I*^

tl-

-rttttt

-l-rll-

liN{

ltll.l

tl

ttl

ltlttl

*^ I ct- I

-lll-'l

l.l -ll

-ll

-ll

*tl

-lllllo-l *l-

Cd

.Et

RatE{

:=

-ats g

$l$cf5*s:ci -: ..i ' -: oi .i

242 RURAL INDUSTRIALISATION

(Contd.)in the non-trailitiond scetor

villape TatalRaibka

5

I

I

3.66

,JJ

.Yo.

1,

Particulars ofentrepreneu$

Appendix IIprofle of

2.00

8.00

4. age1; 25-35 Years

2. 36-50 Years

3. 51-60 years

B. Educationl" Iliterate2, PtimatY3. Middle4l Matriculate5. Graduate

C. Size of familY1, working (average p€r

family)2. Non-working(average

per family)

D. Landed ProPettY

(i') Dwelling qnit1, Pacca house2. Mud house

.3.1 Rented hut/house

(ii) Land (irrigated)L O-5 bighas2. 6-10 bishas

3. 11 bighas or morc

(iii\ Lanil (non- irr igat ed)l. O-5 bighas

2. 6-lO biehas

3. 11 biehas or $rore

E. Moveable profiertYl. Bicycle2. Transistor radio

2

I

t?13al)

;

3.00

8,00

4.20

6.00

I

1l

APPENDIX 24',1

Appendix lll (Contd.)

Clutch facingClutch PlatesRing set

Gear box bearingsValve guide

.set

Hose pipe kitFan beltsWater bodYBody seat

Body bearing

C. Working capital

Rate AnountRs. 39.50 each 79.00Rs. 140 each 280.00

Rs. 175 each 350.00Rs. 50 each 150.00

Rs. 250 each 250.00Rs. 35 each 70.00

Rs. 30 each 300.00

Rs. 250 each 250.00Rs. l8 each 90.00Rs. 25 each 250.00

Suantit!2223

I2

10

I)

l0

Total Rs.3,800.00

Rs. l'000'00Grand Total Rs. 10,000.00

Inder

Action phase of Projects' 29' :I4

Action research, 26,27, 30

Agriaultural Development Brancb/

ADB, 134, 136

Alavada weavers, 97

Alwar District, 36

Agriculture, 36

Animal husbandrY, 47

Credit facil itie's, 50

Divisions, 36

Electricity, 49

Industrial Possibilities' 53

Industries,;53Literacy data, 44

Local entrepfeneurship, 5lFhysical environrneDt, 39, 4lScheduled castes/trib€s, 43

Transport, 48

Ambica Textile Co-operative

Mills, 19

Arya Veer Dal, 35

Apprai$ing villagerc, 91,92, 93

Artisans, 86, 91

Socio-economic Profile' 122

Auto servicing workshop, 95

Bata Shoe Company, 185

Backward distticts (Alwar), 38

Basket making, 94

Bee keeping, 13

BeneficiariesLoan disbursed, 158, 161

Nontraditional s€ctor, 157

Traditional sector, 156, 157

Bharat Leather Corporation' 185

Blacksmithy, 94

B. Sivaraman, 226' 227,228,229

Candle making, 95

Carpentry, 94

Carpet making, 94

Cast€ismRole played in financing, 147

Central Leather R€search Insti'tute, Madras, (CLRI)' 186

Centre for Job Policy Research,

174,226, 233Coir, 13

Commercial Syst€m-rural, 6

ContactingArtisans,95Scheduled castes, 82

Co-operative Banks, 218

cottage Match Industry, l3Council for Advancement of Rutal' Technology (CART), 231

Council for Scientific & IndustrialResearch (CSIR)' 231

Coverage of studY, 32

Credit deposit latio, 218

Dal mill, 94Defaulters, 144

Development Commissioner, lE4'228

Disbursement of loan, 136, 139

Dispensaries,35Behror,36Lachhamangarh, 36Rajgarh, 36Thanagezi,36Tijara 36

250

District Industries Action PIan.32

District Industries Centre, 38, 168,180, r 8l, 183, 184, 190, 214, 2t5,220 , 222, 223 , 227 , 228, 230

Different Rate of Intprest Scheme(DRI Scheme) 149, 154, 188,193, 194, 196,201 , 1,16

District Rural DevelopmentAgency (DRDA), 75

District Technology Centres, 231Durry making, 94

Educational levelScheduled castes/tribes, g4

Eicher, 169, 170, 171, 174, 182,t83

Entrepreneurs (forfirlancial assis-tance), 107, 108 i

Escorts Training Inlstitute, l24,180

Feasibility report, l5tcriteria for, 152

FinancingArtisans entreprene$rs, t33, 138143, 145, 147, 148, 152, 154, 156Equity funds, 232Subgroup, 230

Five Year PlanDraft,28,83First, 12, 16Second, 15, 212Third, 16

Sixth, 70Seventh, 2t l, 229, 230, 233

Flour mill, 94Followup phase of project, 29Followup survey, 187 I

Kishangarh block. 197, 199Mandawar block, 200Nontraditional sectof, 201Pending cases, 204Ramgarh block, 189Traditional sector, 189

Government control, 2i

of Rajasthan, 30, 32) 34

RURAL INDUSTRIALISATION

83

t3,9413,94

Bandi schools, 35paper, 13, 94

candy,94tion of

57, 66, 7657,69

Gandhi,221I D€velopmerit Bank of

illages,57,58

(rDBr),215Development

policy, 48, 5lExpericnce, Japan;2policy, 19

India, 8, llPolicy Resolution 1948,

10, u, 210

policy statement, 17, 18,210

process, 20Training Institute Alwar

111, 112, 168

sector, 70, 127sector, 70, ll8

Rural Develoom€nt

Rural Development(rRDP), 150, 205,

6, 221

14

evaluation, 188, 196

Intemational Development

Gandhi Gram Scva35

Ohkawa,2l3

INDEX . ,

Khadi, 13

Khadi and Village Industries

Board (KVIB), 101' 102, 103,

105

Kora Kendra Bombay, 185.

Leather goods training, 183

I-eather industry, 13, 94.

Loan applications, 134' 139

Matsya industrial arca, 170, 214

Medical public health services, 35

Meiji, 213

Mooni-ban trade, 104' lO5

lvfoonj-ban workers 96, 97, 99,

100, I2lMoneylender, 212, 218' 219

Muttou Tajima, 213

National Board of Agriculture &Rural Development(NABARD)' 215

Nationalists movement, 34

Non CooPeration' 34

Quit India, 34

SatYagrahas' 35

No dues c€rtificate' 136' 153' 203

Non-traditional sector entrepre-

neurs, 129

Oil industrY, 12' 94

Operationdl strategY' 57, 7 |

Paddy husking' 13

Physido-€conomic environment,128

Planning Commission, 226' 229

Policy options' 225

Pottery, 94

PreliminarY negotiations, 148

PrincelY rule,212PrioritY sector, 216

Project Pro6les, 15l' 215

Psycho-socio economic barrier, 85

Punjab National BankAlwar, 154

Harsoli,208

251

Quotation lists, 153

ResearchMethodology, 37

Strategy, 30 .

Resistance to change, 83

Resource base

Kishangarh, 44Mandawar, 44

Resource invettories, 27, 3lRural industrialisation, 22' 27t 28'

30Rural industrY, 7, 8, 14, It 16,

27,94

Saw mill, 94SchedulEd caste communities, 86'

87

Sculptors, 191

Sculpture, 94

Self-employment, 213

Shoe maki,rg, 183, 196, 197, 220

Sivaraman Co mmiltee, 22Q, 221

Skill problematique' 212, 213

Small Farmers DevelopmentAgency, 168, 169, 190

Smalllndustri€! Service Institut€(srsl), 184

Agra, 185

Jaipur' 184, 185

Jodhpur, 185

New Delhi, 185

Small-scale industriesRural, 6, 7, 14; 15, 16

Soap making, 13

State Bank of Bikaner & Jaipur'198, 199, 200, 208

State Bank of India (SBI)' 30' 32'

34, 134,136, 137

Agriculture & DevelopmentBranch, l5f, 190, 2O2, 203, 2O5

Steel furniture, 95Stone crushing, 24

Technical skillsDevelopment, 110

Etigibility criteria' 163' 164

Willingness, 164

Temporary registration, 149Delays, l5l,215Fees, 150

Three-faceted prografnmcfor industrial activ'tly, 77

Tractor mechanics, 169Project pro6le, 180Self-employment, lZ5Socio-economic profile, lZ7Stipend, 173

Treining schedule , 170Training of Rural yourh for S€lf_

Employment {TRYSEM), 23,190,228

Union Ministry