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1. The Organization
Government of Rajasthan established the Rural Non Farm
Development Agency (RUDA) in November 1995 as an exclusive
agency to promote the rural micro-enterprises in the State.
Its primary mandate is to:
► Create alternative avenues of
employment.
► Generate incremental incomes.
RUDA is registered under the Societies Registration Act
giving it a certain autonomy and flexibility in its
functioning. Over the last 9 years, RUDA has evolved as an
innovative, creative and a highly professional agency to
achieve its daunting but challenging mandate.
2. The Approach
RUDA is perhaps the only agency of its kind, promoting rural
micro enterprises on sub-sectoral basis. Initially, 3
sub-sectors viz. Leather, Wool & Minor-Minerals (Stone,
Ceramics and Pottery) had been identified. During the 10th
Five Year Plan three new Sub-Sectorss namely Handicraft,
Khadi & Village Industries and Handloom have been added.
RUDA works through a cluster based approach. It adopts a
truly integrated strategy to promote the sector and all its
interventions are based on the felt needs of the producers.
Among others, RUDA’s package of interventions include:
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Sub-sectoral analysis
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Capacity audit of artisan clusters
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Identifying operational constraints
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Organising artisans
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Microfinance for SHGs and CIGs
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Microenterprise development
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Skill development training
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Technology dissemination
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Design support
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Product development
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Credit facilitation
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Market facilitation
3. Organization Structures
The management of RUDA is vested in its Governing Board
appointed by the State Government. Official members from the
State Government include heads of various State
corporations, financial institutions etc.
While the Secretary, Industries Department is the Chairman
of the Agency and Commissioner Industries is the
Vice-Chairman, the Managing Director is a senior civil
servant from the state government.
4. Interventions of RUDA
A. Organization & Capacity Building :-
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Forming producer groups, SHGs (self
– help groups) and Federations such as in Bagru hand block
printing, Pokaran Pottery project and under the DPIP
project a target of 700 Common Interest Groups (CIGs) are under
various stages of development.
●
Networking with NGOs, private sector / exporters, DICs (District Industries Centers), technical institutes
and facilitating agencies such as FORHEX, RCWPDS (Rajasthan
Carpet & Woolen Product Development Society), CLRI
(Central Leather Research Institute), CGCRI (Central Glass &
Ceramic Research Institute), CSWRI (Central Sheep and Wool
Research Institute, Avikanagar ) and capacity building
institutes like the ITIs.( Indian Technology Institutes).
B. Cluster development :-
A cluster is generally defined as a geographically bounded
concentration of similar, related or complementary
businesses with shared infrastructure, markets and services
and faced with common opportunities and threats.
(a) Importance of Clusters
Micro enterprises in rural areas face competition from each
other as well as from the organised sector. Development of
clusters helps in deriving benefits of economies of scale in
procurement of raw materials, production and post-production
operations.
The Cluster Development Approach enables the small-scale
enterprises to withstand the challenges thrown up by
competition and globalisation. It is estimated that there
are around 350 modern Small and Medium Enterprises (SME)
clusters and about 2000 artisan based rural clusters in
India. In Rajasthan over 700 craft clusters have been
identified and a Cluster Atlas is under publication with the
support of UNIDO by RUDA.
(b) The Cluster Philosophy includes-
● Focused assistance.
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Demand based assistance.
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Flexible instruments of assistance to meet specific needs
of cluster.
●
Close monitoring to spur continuous development and
innovation.
For the purpose of strengthening of existing clusters and
development of new clusters in exceptional cases towards
sustainable competitive advantage through technology up
gradation/ transfer, raw material access, skill development,
managerial inputs and credit support, market support, RUDA
has developed a 14 step Cluster Development Strategy:
Identification of clusters. Diagnostic study and
preparation of cluster status and action plan.
Identification of solutions to problems/ issues.
Selection of NGOs / VAs / Developmental Agencies.
Constitution of Cluster Development Committee Assignment
of clear roles to various partner agencies
Approval of Action Plan
Launching of the Programme Sensitisation for the partners
of the programme,
Group mobilisation/ motivation including the SHG strategy
for microfinance
Awareness/ Skill development of artisans.
Increasing product range and improving quality and
productivity. Supporting technology up gradation/ transfer.
Implementation of credit linked promotional programmes
through NGOs/ VAs/ Developmental Agencies.
Monitoring the progress closely through the Cluster
Development Committee at regular intervals.
Development of Management Information System including the
preparation of Cluster Status showing number of people/
families employed, nature of activity, age of the cluster,
source of raw material, skill levels, marketing strategy,
credit linkages and other details of the activity/ product
line constitute Cluster status.
The Cluster development Action Plan is finalised with the
help of the SHG and the NGO covering credit/ refinance
requirement year-wise for three years and promotional
intervention suggested during each year.
The groups are thereafter federated into associations and
cooperatives to empower them with negotiation and marketing
capacities.
B. Technology Dissemination /
Intervention :-
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Through C.L.R.I. for improving
vegetable tanned process in the leather clusters,
C.F.T.I. (Central Footwear Technology Institute) for
development of western footwear, C.G.C.R.I. ( Central Glass
and Ceramics Research Institute) for developing lead free
Blue pottery & C.S.W.R.I for improving processing of raw
wool etc.
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Constructing down draught kiln with the aid of D.F.I.D.
(The Department of International development, UK) for
strengthening the body of blue pottery products.
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Improving traditional looms through Development
Alternatives and the Weaver Service Centre.
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Technical improvement of traditional “Mojaris” under an UNDP-NLDP (National Leather development programme) assisted
Operation Mojari Project.
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C. Product and Design Development
:-
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Through student diploma projects
with N.I.F.T. (New Delhi) and N.I.D. (Ahmedabad).
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Through institutional tie ups with N.I.F.T.- for
developing a range of accessories and garments in wool.
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Through professional design consultants- for mojaris,
leather accessories, pottery & stone products, khadi shawls,
“numdahs”, etc.
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Through international design consultants, with aid from D.F.I.D, Indo-German Chamber of Commerce, FORHEX etc.
D. Credit Facilitation :-
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Organising micro credit orientation programmes- workshops
have been organised with assistance from Action Aid.
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Exposure visits to SHG areas, organising SHGs and
generating savings. Providing matching funds to SHGs.
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Liasioning with banks & direct funding by RUDA for working
capital against orders & facilitating advances from buyers
against orders.
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Linking with apex institutions like SIDBI to implement the
Rural Industries’ Programme - through EDA Rural Systems.
F. Market Facilitation :-
In congruence with its facilitation of forward linkages,
RUDA has developed an innovative program of marketing
facilitation. This includes facilitating artisans directly
to reach the markets. Linking them with exporters & buyers,
virtual stores to help them to understand the demands of
consumers and innovate accordingly. Over the years, many
buyers seller meet, exhibitions and fairs have been
organized & participated by the agency to facilitate the
artisans.
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