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[BAYA WEAVERS :

2011E-governance Mini Project

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October 10, 2011 BAYA WEAVERS : TAKING INDIA TO THE WORLD

TAKING INDIA TO THE WORLD

CONTENTSCONTENTS.............................................................................................................................................1

Chapter 1: Abstract................................................................................................................................4

Chapter 2: Introduction.........................................................................................................................5

Baya Weaver: The Indian Weaving Bird.............................................................................................5

Handloom Industry in India...............................................................................................................5

History of Handlooms in India...........................................................................................................6

Present Outlook on Indian Handloom...............................................................................................6

Weaknesses attached with Handloom Industry in India................................................................7

Characteristic features of this industry are:-.....................................................................................7

Handloom Weaving & Embroidery Styles in India.............................................................................8

Chapter 3: Scope of the framework.....................................................................................................10

Business scope:................................................................................................................................10

Technical scope:..............................................................................................................................10

Chapter 4: Model of The Baya Weavers Project..................................................................................11

Issues faced by the weavers in the villages:....................................................................................11

The model: How it works: An introduction......................................................................................11

The model to be followed is government to business......................................................................13

The Baya Weavers Model................................................................................................................14

The functioning of the project:........................................................................................................15

Skill Builder Programme..............................................................................................................15

English Relay Programme............................................................................................................15

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Praveen Kumar 10030241025Vaun Sood 10030241043Amit Singh 10030241051

Syed Hasan Rizvi 10030241134

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Self Help Groups (SHG)................................................................................................................15

.....................................................................................................................................................15

Computerized Pattern Design......................................................................................................15

Loom for PoP Weavers................................................................................................................15

Apparel Design.............................................................................................................................15

Block Printing and Kalamkari.......................................................................................................15

E-Commerce Portal......................................................................................................................15

Managing the web portal................................................................................................................16

The fellowship program...................................................................................................................17

Chapter 5: Benefits and Costs in the Project.......................................................................................18

Government Benefit....................................................................................................................18

Benefits of the Project.....................................................................................................................18

1. Retail Channel......................................................................................................................18

2. New Designs........................................................................................................................19

3. Employment........................................................................................................................19

4. Removing Digital Divide.......................................................................................................19

5. Automated Supply Chain & Distribution Channel................................................................19

6. Manufacturing right quantity at right time:.........................................................................20

7. Web Portal (Online Buying & Selling....................................................................................20

8. Promotion of Indian Culture:...............................................................................................20

9. Awareness of Export and Market Policies............................................................................20

10. Government Benefit........................................................................................................20

COST TO BE INCURRED:...................................................................................................................21

Physical Infrastructure.....................................................................................................................21

1. Site.......................................................................................................................................21

2. Machineries:........................................................................................................................21

3. Loom:...................................................................................................................................21

4. Warehouse:.........................................................................................................................21

5. Transport:............................................................................................................................21

IT Infrastructure...............................................................................................................................21

1. Internet:...............................................................................................................................21

2. ICT Trainers..........................................................................................................................22

3. Web Portal:..........................................................................................................................22

Chapter 6: Government Policies..........................................................................................................24

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Government initiatives....................................................................................................................24

Government Policy..........................................................................................................................24

Major initiatives taken during the Budget of 2008-09:....................................................................26

Chapter 6: Challenges In Implementation...........................................................................................28

Digital Divide................................................................................................................................28

Reluctance in adopting change....................................................................................................28

Registering of retailers into a “recognized retailer list”...............................................................28

GUI of the portal should be inconsideration with Diversity of the country.................................28

ICT infrastructure upgrade and extending reach to rural areas...................................................29

up of a weavers’ association across the country.........................................................................29

Formulation of stern laws/policies..............................................................................................29

Price Flooring...............................................................................................................................29

Integration of data available in legacy systems...........................................................................29

Involvement of locals in the project............................................................................................30

Training to govt. employees of “Ministry of textiles”..................................................................30

Continuous & Rigorous auditing..................................................................................................30

Chapter 7: Conclusion..........................................................................................................................31

References...........................................................................................................................................32

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Chapter 1: Abstract

The Baya Weavers project integrates the rural handloom industry of India. People in the rural areas have been involved in the weaving tradition from years. But the low return in the business and the degrading future has forced many of the skilled people to quit weaving and look for other jobs and careers. This has resulted in huge number of unemployment. The distributors buy the goods from these regions and sell at a high price but the weavers’ share is very low.

The Baya Weavers Project provides the ICT infrastructure to enhance the skills of the weavers and carry out their products to the entire globe. The project comprises of development centres for each region. These DCs are well equipped with the infrastructure required by the weavers for the production. The ICT platform is provided at each DC.

A web portal is developed for the purpose of retailing. The portal is managed centrally and the order placed is directed to the related DC and the goods produced are transported to the central location from where they can be shipped.

The objective of the project is to strengthen the rural weavers both socially and economically. Another major objective is to safeguard the Indian traditional handloom and carry it to the world.

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Chapter 2: Introduction

Baya Weaver: The Indian Weaving Bird

The Baya Weaver (Ploceus philippinus) is a weaverbird found across South and Southeast Asia. Flocks of these birds are found in grasslands, cultivated areas, scrub and secondary growth and they are best known for their hanging retort shaped nests woven from leaves. These nest colonies are usually found on thorny trees or palm fronds and the nests are often built near water or hanging over water where predators cannot reach easily. They are widespread and common within their range but are prone to local, seasonal movements mainly in response to rain and food availability.

Handloom Industry in India

Handlooms have been known to India right from the historic ages. The use of fabrics, techniques created to make designer art pieces and expressing ethnicity through them has been an integral part of India’s base. Its power is such that Handloom industry constitutes around 14 percent of total preindustrial production and 30 percent of the total export business. Well, that’s not all; it is also the second largest industry in India with important segments, such as independent power looms, modern textile mills, handlooms and garments. This made the handlooms popular in foreign markets also and raised their demand.

And in return to this, handloom industry became one of the most important factors for the country’s economic growth. It is well-known that every state of India has the gift of handloom to offer, which lends them their individuality. Even, the texture and style of fabrics has been fascinating foreigners and increasing their knowledge about India’s cultural heritage. In fact, our handloom industry acts as a bridge between cultural differences. What lends exclusivity to the handloom industry in India is its technology of getting out beauty from the most intricate designs of all and exemplifying richness of the country.

From using hand spun machines to mechanical advances, the handloom industry has travelled a lot. With the help of mechanical looms and technology, the weavers and embroiders are able to manage tedious tasks with great efficiency. In order to boost this industry, Indian Government has also introduced various schemes for the benefit of weavers, farmers and fabric printers. On an overall basis, handloom industry of India has a sense of unity in diversity that makes it capable of capturing hearts and senses.

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History of Handlooms in India

The handloom industry rolls its carpet back to the ancient times. The very first fragment of Indian handloom was excavated from the parts of Egypt. After that, finely woven and dyed cotton fabrics were found in Mohenjo Daro (Indus Valley Civilization). There were some more excavations that speak of the golden history of Indian handloom. In fact, traditional handloom style has been one of the oldest forms. Even, the Vedic literature also has mention of Indian weaving styles. Apart from this, few examples are also seen in Buddhist era scripts about the woolen carpets.

Prior to imperialism and colonization, all the natural fabrics (silk, cotton and jute) were hand-woven. And Khadi was among the prevalent materials at that point of time. Later on, the mechanical system created ways for the faster completion of spinning and weaving. After the introduction of machinery, the technicalities were given due care and the finesse came in a better way. This also helped the weavers, embroiders and hand-printers to create new designs. At the time of British, the export business of cotton and silk also started. This enabled the Indians to showcase the talent of their expertise in other countries also.

Indian handloom created a special place for itself in India and abroad too. With so many varieties of handloom from different states, India has collected a precious wealth of innovation. After all, this has lead to the emergence of India as the most richly cultured country.

Present Outlook on Indian Handloom

Indian handloom has been the pride of India’s tradition and a representative of its cultural brilliance. In fact, handloom sector has been gaining significance since the ancient times, when it was discovered. The basic meaning of Indian handloom is creating designs by keeping traditions intact. And that’s the reason; this sector has always been in demand. In earlier times, the weavers, embroiders and printers used to do wonders with their skills manually. But, the development in this sector has given birth to various machines that are meant to simplify the tasks

From the ancient times till now, Indian handloom has travelled steadfastly in the direction of lessening gaps between countries. Being the second largest sector in the world and a bread earner of over 60 Lakh people in India, handloom sector has developed techniques to match the ongoing modernity. It is well known that traditional and customary handloom act as the base of every progress. The innovation in terms of mechanism has been done to meet the growing demands of contemporary styles. This has leaded the artists in making fusion dresses and prints on them.

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The present outlook on Indian handloom says that it has carved a niche for itself in the world. Indeed, the foreigners always get attracted to the stylish prints, vibrant colors and bold embroiders that speaks of Indian tradition in detail. Well, this sector has played a very good part in bringing the world close o Indian tradition. The people also get to know a lot of hard work and toil hidden in the wings of the bird of Indian handloom.

Each and every part of Indian Territory brings the gift of their specialty to the world. One can check out Phulkari of Punjab, Bandhej print of Gujarat and Rajasthan, variety of pure silk in Assam, finest cotton saris from Bengal with gold and silver work and lots more. On an overall basis, Indian handloom has been growing and has now become a trademark that is stylizing the lives of crores.

Weaknesses attached with Handloom Industry in India

Technology used in this industry are backdated in nature The system of production is not organized The yield rate of such industry is significantly low Availability of working capital for this industry is quite low The marketing aspect associated with the Handloom industry is almost nil Innovation in the field of creation of final product is significantly low and hence the

numbers of total products are limited to a few. Handicrafts industry Handicrafts industry is one of the most traditional industries in

India.

Characteristic features of this industry are:-

Capital (initial as well as working) required for investment is very low Total number of people employed in this industry are significantly high Value added by the handicrafts industry is quite high A large portion of the produce is meant for the foreign audience that is why this

industry is capable of earning foreign exchange for both the artisans and the country.The total number of people employed in this industry amounts to 63.81 lakhs. Foreign exchange earned by this industry through export route expanded rapidly from Rs 15,616 crores in 2004-2005 to Rs 17277 crores in 2005-2006.

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Handloom Weaving & Embroidery Styles in India

Handlooms have been given a stylistic form with numerous types of weaving and embroidery trends. In fact, they have added grace to the overall piece of fabric with intricate designs. These cloth designing techniques have enabled the artists to popularize their art forms in the world over. The popularity was such that the styles were adopted in foreign land also and sold in full pomp. Embroidery and weaving styles have always been in demand by men and women, as they glorify the fabric to enhance its looks.

What makes this art more trendy and stylish is the use of vibrant colored threads, which are inter-mingled to create artistic designs. It not only adds life to any dull or plain fabric; but, beautifies a simple plain cloth piece also. Embroidery or needle work has been in vogue, since its discovery. From creating close-knit designs to broad styles, Indian weaving and embroidery has been liked by all. This form has also given a special identity to the various states of Indian Territory.

The rich cultural heritage of India is clearly reflected in the work of embroidery and weaving techniques. Every style of embroidery reflects tradition pertaining to the state of its origin. Whether it is machine embroidery or hand work, both have their own grace and significance. With so many weaving and embroidery styles, India is unmatchable and enjoys monopoly in the field of handloom designing.

Different types of weaving and embroidery in different parts of India:

Phulkari Chikankari Brocade Baluchari Jamawar Paithani Ikkat Chanderi Maheshwari Jamdani Kota Pochampalli

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Some facts about Indian textile industry:

• India contributes to about 25% share in the world trade of cotton yarn.

• India, the world’s third-largest producer of cotton and second-largest producer of cotton yarns and textiles, is poised to play an increasingly important role in global cotton and textile markets as a result of domestic and multilateral policy reform.

• Indian textile industry contributes about 22 % to the world spindleage and about 6 % to the world rotor capacity installed.

• India has second highest spindleage in the world after China with an installed capacity of 38.60 Million

• Indian textile industry has the highest loomage (including handlooms) in the world and contributes about 61% of the world loomage.

• It contributes about 12% to the world production of textile fibers and yarns.

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Jamawar

Phulkari

ChanderiMaheshwari

Ikkat

Kota Doria

Paithani

Chikankari

Brocade

BaluchariJamdani

Ikkat

Ikkat

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• India is one of the largest consumers of cotton in the world, ranking second to China in production of cotton yarn and fabrics and first in installed spinning and weaving capacity.

Chapter 3: Scope of the framework

Business scope:

Formation of a web portal is the primary scope of the project. This web portal will alow customers to directly transact with the weavers. At the same time, weavers can use this portal to get services from the government regarding policies & laws, best practices, training videos etc.Formation of a "Weavers association" also comes under the business scope of the baya project. This Weaver's association will involve registration of all the weavers spread throughout the country. Similarly, "Recognized Retailers" registration will also take place in the project.The scopes will also include imparting of ICT and business training to weavers across India and also some training to the employees of Ministry of textilesVarious Information Kiosks (centres) will also be setup, especially in rural areas, where weavers don't have access to ICT tools and the internet.

Technical scope:

Up gradation of ICT infrastructure will come under the technical scope of the project. Also, the reach of ICT infrastructure to rural areas is one of the major scopes of this project.Also, Data integration with legacy systems will be performed. Ministry of textiles already has some data stored in their legacy systems which might be useful in the future.The Version 1.0 of the web portal will have limited features in the beginning. For example, limited number of languages to begin with. The subsequent versions will have more functionality added to them.

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Chapter 4: Model of The Baya Weavers Project

Issues faced by the weavers in the villages:

The handloom/ textile industry has a multi-billion export each year. But the weavers in the rural areas are getting only a few thousand rupees per month.

Market is captured by the exporters who buy the stuffs from these rural areas or employ these people.

The younger generation is shifting from the traditional weaving to other alternatives as weaving has become non-profitable occupation for them.

The reason behind this is that the people in rural areas are unaware of the actual demand of the trends as they belong to economically weaker section.

Lack of resources. People in rural areas are unable to afford the machinery support for their work. They are either employed under a few local business man or they produce handlooms which are then sold to the local distributor at a very low rate.

Lack of retailing channel. Shift towards other occupation as weaving is less profit generating for them.

The model: How it works: An introduction

The government is proving the development centre to every region. The development centres will be equipped with the necessary resources like loom,

machinery, electricity, computers, internet and trained people to assist the weavers in operating the computers and the machineries.

The development centres will be providing the following services Training Financing

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Providing the retailing network Providing latest designs and patterns Web portal for e-commerce Insurance ICT training Providing resources English communication training Etc.

The purpose of the project is to have an integrated infrastructure for the entire country.

Most of the business activities will be carried out through the e-portal. The government will also be following some of the marketing strategies for the same. The distributors across the globe can log in and look for the designs, clothes and

fabrics available and can place an order online. Once the order for a particular textile is placed, the information will be provided to

that region’s DC. The ordered quantity will be told and accordingly the delivery date can be decided. Since the ordered quantity is already known the people in the rural areas will be told

accordingly and they can work as required. The order once completely manufactured will be taken to a central location from

where the shipment will take place. The government may keep some part of the revenue to compensate the operational

cost and the taxes. The weavers will be made aware about their share in the revenue as soon as the order

is placed. The only task that the weavers would be having is take the order, know the amount

they would be getting, and weave the required cloth by the delivery date. The patterns and design required will be provided by the DC. The design, the fabric, and quantity everything will be chosen by the customer on the

portal itself. If required the customer can also post his own design, i.e., there will be an option of

custom designing. There will be many other facilities like insurances, financing which will be provided

by the government.

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The model to be followed is government to business

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Design

Retail channel

Order placement

TrainingInsurance

EmploymentFinance

Self help groups

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The Baya Weavers Model

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Development centre Export Online order web portal

Creation of Designs using ICT tools

Creation of innovative apparel designs

Vocational basic ICT training

Export & market policies

Issues & opportunities

Information Site (best practices)

Place orders directly

Internship to professionals willing to help weavers in ICT

(Mission Statement)

Information Kiosks

Collection Centres

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The functioning of the project:

Skill Builder ProgrammeThe main objective through this program is to acquaint the youths with the benefits of ICT and their applications in various spheres of life. In this program, computer applications are taught through examples which are relevant to the learner’s environment.

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Awareness Creation

TRAIN WEAVERS

Build Outlets in

major cities

Efficient Supply Chain

Weavers should be able to sell their products directly to distributors

E commerce

Portal

Running a “fellowship program”

Providing the latest equipment and loom at the development centres and to make the rural areas digitally empowered

Data Centers

Lan/Wan (internet)

Server/Storage/backup

Information Security

Call Centers

Mobile Apps

Tele conferencing

Information Kiosks

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English Relay Programme This program also devised to cater the needs of rural children. The objective of the program is to train the children in Basic English language skills and later in competent usage of English for academic purpose and daily use.

Self Help Groups (SHG)Promoting the formation of Self Help Groups is one of the key tasks of the project. The goal is to form at least 30-50 SHGs for various activities in order to create ownership, entrepreneurship, and to create long term sustainability for the Project.

.

Computerized Pattern DesignThe weave software has to be customized according to the requirements of the rural weavers. They will be successful in reproducing traditional patterns and in combining the myriad existing designs to create new patterns.

Loom for PoP WeaversThe special initiative to install looms for the poorest of the poor (PoP). Weavers should be given equal opportunities and resources irrespective of their economic status.

Apparel Design

Apparel design is an intensive training course. It is divided into two parts; the first part seeks to acquaint the women with the basics of sewing and stitching. The second part is more specific and deals with the intricacies of both textile and apparel designing. This course equips the women to produce ready-made garments and furnishings in conjunction with market trends.

Block Printing and KalamkariBlock printing and Kalamkari are two of the most sought after techniques for fabric decoration. Woodblocks engraved with intricate pattern are dipped into coloured dyes are stamped on to the fabric.

E-Commerce PortalE-Commerce website will be maintained to market and sell the products globally with an online payment option and a virtual shopping rack. The portal will be managed by the experts centrally and activities will be regularly monitored.

Managing the web portal

The web portal will be managed centrally. The online orders will be placed centrally. Suppose if the order is placed for Chanderi then the DC at Gujarat will be informed about the following:

Quantity Design

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Pattern Apparel types Delivery date Revenue for the weavers

The following screenshots provide a glimpse of how the web portal would look like.

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The fellowship program

The interested people can volunteer themselves to provide assistance in the Bia Weavers project. The interns will be first trained for the operations of the project. Training will be done centrally and then the interns can be send to various locations for the same.

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Chapter 5: Benefits and Costs in the Project

Benefits of the Project

1. Retail Channel: With the concept above the people who do not have proper access to the retail industry where they can showcase or market what are their products will have a retail channel through this concept for the weaving industry. Retail is platform

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Employment

Removing Digital Divide

New Designs

Retail Channel

Web Portal (Online Buying and Selling)

Manufacturing right quantity at right time.

Automated Supply Chain & Distribution Channel

Promotion of Indian Culture

Awareness about the export and market policies

Government Benefit

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where the weavers are dependent on others and due to which they get less margins. So, through this concept they can actually get retail facility where they can get the customers and exposure to their products made.

2. New Designs: The project will also provide new designs which are currently there in the market. Weavers don’t have any idea what tradition is going on in the market and they just keep on producing the designs until they don’t get the new designs. So, new designs and traditions will be immediately updated and provided by the people who are involved in the project. Weavers can get to know what is to be produced which can bring them more profit or say save them from loss through the site also. New designs will be available for the industry people to look into what new coming up.

3. Employment: This project will be providing one year internship to those professionals who will be willing to help the weavers in learning the operations related to ICT and will provide assistance in the business and developing the architecture to supply the developed products. This will bring in employment for the people who have the basic computer knowledge and who can communicate the updates to the weavers and also train them to understand the market know how. This will also bring employment for the more number of weavers and weaving industry size can grow big who hesitate to get into it just because of the less profit margins.

4. Removing Digital Divide: There are people who have a good knowledge about the new technology and they have proper information through communication where they get an edge over the weavers who are poor and do not have any ICT related facility available. Weavers are situated in the rural area or in an area where they are not aware of the technology which can help them. So, the BAYA Weavers can bring in change and through the information about the designs, new market trends, market related policies and awareness about the export policies too.

5. Automated Supply Chain & Distribution Channel: The network created amongst different companies producing, handling and/or distributing a specific product. Supply chains include every company that comes into contact with a particular product. For example, the supply chain for most products will encompass all the companies manufacturing parts for the product, assembling it, delivering it and selling it. This will provide an automated supply chain and distribution channel where the weavers will have the proper facility and record that to whom they have supplied, what amount, what price. Supply chain transactions, manage supplier relationships and control associated business job processes will also be the concerns of the BAYA Weavers..

6. Manufacturing right quantity at right time: Weavers are the one who are not aware of what to produce at what time as they don’t have any means to update them on time

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what actually is going on the market. So the project will concentrate on providing the information as to know what is the need of the industry and at what time they will be in the need of it so that the production can occur accordingly.

7. Web Portal (Online Buying & Selling): Web portal is the one where all the transactions can be processed like buying and selling of the product they produced and the marketing of the products. Making people aware of the innovative designs weavers can make and instead the trend coming to the weavers, the weavers starts the trend. The design, the fabric, and quantity everything will be chosen by the customer on the portal itself.

The distributors across the globe can log in and look for the designs, clothes and fabrics available and can place an order online. Once the order for a particular textile is placed, the information will be provided to that region’s DC. The ordered quantity will be told and accordingly the delivery date can be decided. Since the ordered quantity is already known the people in the rural areas will be told accordingly and they can work as required. The order once completely manufactured will be taken to a central location from where the shipment will take place.

8. Promotion of Indian Culture: Now-a-days nobody looks towards them and just think of what the big industries are brands are bringing in the market. The weave producers are the one who are the key to big brand’s success. Those people are in the rural India. This will bring in the Indian culture into picture and the BAYA Weavers if got popular as it is for India, this will showcase real India, its culture and the strength of India.

9. Awareness of Export and Market Policies: The weavers doesn’t have any idea about the market policies and the export policies through which they earn their living which is in few thousands. They can actually get the information about the policies prevailing so that they are not cheated on the price rates in the market and what they are getting.

10. Government Benefit: The government may keep some part of the revenue to compensate the operational cost and the taxes when it comes to buying, selling and distribution of the product are done online through the portal.

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COST TO BE INCURRED:

Physical Infrastructure1. Site: This will be the area/building/place where the weavers will be trained and a

proper setup will be provided with all the ICT related Infrastructure and this site will be inter-related to the other sections of the concept i.e. warehouse, machinery etc. This site will be owned by the government. The cost of the site will vary from area to area in different parts of the country.

2. Machineries: The machineries will be provided by the government. These machineries will be helping the weavers to produce in a lot. They use traditional way of weaving with hands and machineries are not available in every rural area. The cost of the machine varies from Rs.1,50,000-10,00,000

3. Loom: The latest loom which is the new market trend will be provided for the manufacturing of the product so as to be in the market by the government. The cost of the loom varies from Rs.2500 to 50,000 in different units like kilograms or meters or folding.

4. Warehouse: A warehouse will be provided which will have all the inventory stored and will be inter- connected with the site or may be in the site. Through the warehouse the finished product will be transported and the raw material will be stored from where the weavers will get material for production. The cost of the warehouse will vary from area to area in different parts of the country.

5. Transport: Transport facility will be provided for the distribution of the finished product and also at the time of bringing in the inventory to the warehouse. The transport cost varies from place to place as the truck transport charges are different in different parts of India.

IT InfrastructureIT infrastructure will have a major role in the Web Portal functioning of the project and also in tracking down the inventory and the transactions.

Computers: The cost of one budget PC today in the market is Rs.15, 000 to Rs.20, 000. There can be need of at least 5-10 PCs at one site to handle the transactions initially. And there are n numbers of rural areas where weaving is practiced.

1. Internet: If we are going to deal with the Web portal then Internet is must. The internet services are getting very cheaper now-a-days. The charges can be Rs.1, 000 to Rs.2, 000 per month.

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2. ICT Trainers: To bring in ICT Trainers, firstly there will be cost incurred in providing them training in the form of internship which can cost approximately Rs.50, 000 and then the salary to be given to the ICT Trainers will also be a cost to be incurred.

3. Web Portal: The development cost of the web portal will be around Rs.50, 000 which will have a basic user interface and all the functionalities required. There will be a scope of updating in the application incorporated in the web portal.

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Chapter 6: Government Policies

Government initiatives

The Scheme for Integrated Textile Parks is a collective initiative of the Government of India, a vision that aims to create cluster models to aggregate the capacities and harness the collective potential of small and medium textile companies.

The scheme has identified 34 such parks across the country with a capital investment of US$4 billion. The parks facilitate existing textile entrepreneurs with potential to upscale production capabilities, benefit from a common infrastructure resource with a minimum contribution from entrepreneurs, match global production standards, and cater to a ready worldwide market potential

Government PolicyHandlooms & Textiles Department – Textile and Apparel Promotion Policy 2005-2010.

The policy is about:

Multi-fibre agreement, which envisaged quotas of production to different countries, has expired on 31st December, 2004. This has opened up many opportunities for textile and apparel industry in the country. Given its labour intensive nature, Textile and Garment Industry can provide employment on a large scale especially for young women. Andhra Pradesh is the third largest cotton producer in the country. Hence Textile and Garment industry requires special emphasis and focus.

Vision:

1. It shall be the policy of the Government of Andhra Pradesh to promote and develop a strong and vibrant Textile industry.

2. Provide sustainable employment to weavers and workers in Handloom, Power loom, Textile and Apparel sectors.

3. Establish Textile and Apparel Parks for encouraging spinning, weaving, processing and garmenting units;

4. Make available fabric of good quality at affordable price to meet the requirements of both domestic and international markets;

5. Modernise looms and encourage new designs; and

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6. Contribute substantially to the export and Gross Domestic Product of the State in particular and country in general

Objectives:

The following are the objectives of the Textile Policy:

1. It is the target of the Government to generate employment opportunities to youth additionally by 15 lakh persons, mostly women weavers and educated unemployed in Handloom, Textile and Apparel sectors by the year 2010.

2. Achieve textile and clothing exports from the present scale of US $ 0.08 billion (Rs.384 crores) to US $ 5 billion (Rs.25, 000 crores).

Reform measures and Policy initiatives:

The Textile Industry came out of Quota Regime of Import Restrictions under the Multi Fiber Arrangement (MFA). This development came on 1st January 2005 under the World Trade Organization (WTO) Agreement on Textiles & Clothing.In an effort to increase India's share in the world textile market, the Government has introduced a number of progressive steps.

1. 100 per cent FDI allowed through the automatic route.

2. De-reservation of readymade garments, hosiery and knitwear from the SSI sector.

3. Technology Mission on Cotton has been launched to make available quality raw material at competitive prices.

4. Technology Up gradation Fund Scheme (TUFS) has been launched to facilitate the modernization and up gradation of the textiles industry.

5. Scheme for Integrated Textile Park (SITP) has been started to provide world-class infrastructure facilities for setting up their textile units through the Public Private Partnership model.

6. The Indian Textile Plaza is being built, in the city of Ahmedabad to encourage exports to overseas markets. “Higher standards............making a difference for you”

7. 50 textile parks are being established to enhance manufacturing capacity and increase the industry's cost competitiveness.

8. A cluster approach for the development of the handloom sector has been adopted from the year 2005-06 onwards.

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9. Measures have been initiated for protection of handloom items likeBanarasi brocades, Jamdani of Bengal etc., under the GeographicalIndications of Goods (Registration and Protection) Act, 1999. So farsanction to register 20 items have been issued under the Act.

10. For the handicraft sector, some of the new initiatives include the facility centres for exporters and entrepreneurs in the Public Private Partnership (PPP) mode on build, own and operate model with the governmentmeeting 40% of the total cost of setting up the centre with maximum investment of Rs. 24 lakhs.

11. In the Wool Sector, a project in public private partnership mode wasapproved for setting up processing and finishing facilities for shawlmanufacturers at Ludhiana in Punjab.

12. In the Jute Sector, the Jute Technology Mission was started during the year 2006-07 with Mini Missions being implemented by the Ministry. The focus of the mission is on improvement of the yield and quality of Jute Fibre, establishing market infrastructure, storage godowns, developing prototypes of machinery with private sector involvement, development of human resources for the jute industry etc.

Major initiatives taken during the Budget of 2008-09:

1. Allocation towards the Scheme for Integrated Textile Parks (SITP)maintained at Rs 450 crore.

2. Allocation for the Technology Upgradation Fund (TUF) raised from Rs 911 crore to Rs 1,090 crore.

3. Allocation for the development of the handloom sector increased to Rs 340 crore.

4. Setting-up six ‘mega clusters’ proposed. The mega clusters includeVaranasi and Sibsagar for handlooms, Bhiwandi and Erode forpowerlooms and Narsaspur and Moradabad for handicrafts. An initialallocation of Rs 100 crore is proposed.

5. National Calamity Contingent Duty (NCCD) of 1 per cent on polyester

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filament yarn abolished.

Handloom sector:

1. 250 clusters being developed and 443 yarn banks established under the Cluster approach to the development of the handloom sector;

2. Over 17 lakh families of weavers to be covered under the health insurance scheme;

3. Allocation being increased to Rs.340 crore in 2008-09;

4. Infrastructure and production being scaled up by taking up six centres for development as megaclusters.

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Chapter 6: Challenges In Implementation

Digital Divide

The high variance of wealth/purchasing power across rural and urban areas and also the lack of skills to use them will post a major challenge for this project to be successful.

Reluctance in adopting change

The weavers across India would be used to their traditional ways of selling their products and will definitely be reluctant to adopt a completely new system altogether. Thus, it is very important to bring out awareness among them as to how the new portal & system will help them grow and earn more profits at the same time. Reliability and trust will be of utmost importance.

Registering of retailers into a “recognized retailer list”

The government will also require the retailers to first register with the government into a recognized “Retailer list”. This is basically to ensure that weavers are not exploited by mal practices of some retailers. The challenge is that there might be several retailers throughout the country acting like “middle man” which would be difficult to list down and register. Also, a retailer should be allowed to register if it’s legally sound and has a good credibility and reputation.

GUI of the portal should be inconsideration with Diversity of the country

India is a huge diverse country with many cultural and lingual differences especially in rural areas. The GUI of the portal has to be as such that it can support most of the known and few unknown languages in the rural areas. Also, in certain areas, touch screen systems should be installed so as to have a better communication with those weavers with language/communication barriers.

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ICT infrastructure upgrade and extending reach to rural areas

The current ICT infrastructure of the country is definitely behind the standards being followed worldwide. The need would be to upgrade ICT technology, at least in the urban areas and extend the reach to rural areas. Providing weavers with PCs and internet connections will also involve huge cost. In situation where providing PCs to everyone is not possible, a kiosk should be provided to every village from where weavers can access the portal.

up of a weavers’ association across the country

To keep track of the activities of all the weavers’ across the country, it is important to first have each one of them registered. Not only to keep track but for them to use the portal, registration is important. Every weaver would be identified by a unique alias or a key for better monitoring.

Formulation of stern laws/policies

Exporters and local retailers exploit the weavers in most of the cases. Underpaying them, excessive work, child labour are some of the problems which are currently being faced. Strong policies and laws could ensure that these problems are dealt with and that all transactions are “white” in nature and not “black”

Price Flooring

As mentioned earlier, majority of the weavers are under paid for the work they do and the “middle man”, i.e. the retailer or exporter earns profits on exponential basis. It is thus important to impose price flooring so that weavers also earn their fair share along with the retailer/exporter. Correct distribution of wealth can help the country to prosper.

Integration of data available in legacy systems

The current body which monitors the handloom industry is the Ministry of Textiles. They definitely have some master data and historical data stored onto legacy systems which would be very important in forecasting trends, tracking

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records etc. So integrating these legacy systems with the candidate new systems will be a challenge.

Involvement of locals in the project

It will be recommended that the local governing bodies are also involved in the project for easier implementation and better tracking. The involvement should go to as low to a “panchayat” of a village to ensure that people are encouraged to use this new system in an efficient and profitable manner.

Training to govt. employees of “Ministry of textiles”

The body which will look after this baya portal and monitoring and control of this sector would be done by ministry of textiles. Earlier, its employees were not required to have ICT knowledge. But with this E-governance project, it will be important to first train the govt. employees and hiring of experts to manage the portal and the sector.

Continuous & Rigorous auditing

It is difficult to always keep track of all unofficial transactions that might take place due to certain mal practices either by retailers or exporters. Hence, it is important that continuous & rigorous auditing took place in the systems as well as physical auditing.

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Chapter 7: Conclusion

The Baya Weaver project focuses on digitally empowering the rural weavers. With the assistance of the portal and the ICT infrastructure, the weavers are provided with a retailing channel. This will strengthen the weavers both financially and socially.

The success of the project depends upon the installation stage and the awareness being communicated to the rural masses. The motive behind the project is to help the weavers and safeguard the Indian handloom culture.

The weavers are only considered about the return that they will get for the goods produced. The infrastructure and the distribution are catered by the government.

The project will strengthen the handloom industry of India and will increase the number of exports to the world, hence improving the economy from the textile industry.

Together the ICT and the human skills can take the handloom industry to a greater heights.

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References

1. http://www.alibaba.com/showroom/weaving-machine-prices-india-manufacturer.html 2. http://defindia.net/2011/05/27/cwirc/ 3. http://www.indiantextilemagazine.com/weaving/indian-weaving-industry-

%E2%80%93-an-overview4. http://planningcommission.gov.in/reports/sereport/ser/stdy_hndloom.pdf 5. http://www.iimb.ernet.in/~chandra/The%20Textile%20and%20Apparel

%20Industry.pdf

6. International Referred Research Journal ISSN- 0975-3486 VOL,I *ISSUE-9 RNI: RAJBIL /2009/30097

7. The Wall Street Journal : Indian Weavers Shun Health Plan by Vibhuti Agarwal8. compendium of textile statistics 20109. http://defindia.net/2011/05/27/cwirc/ 10. Handloom industry in india By : Dr. S. Sudalaimuthu, S. Devi11. http://texmin.nic.in/annualrep/ar02_c05.pdf 12. http://handicraftsindia.org/handlooms/handloom-industry-india/ 13. http://handloommark.gov.in/

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