The government of India, through an act of Parliament, created in 1956 the Khadi and Village Industries Commission (KVIC) with its headquarters at Bombay. KVIC was created to coordinate planning, promotion, organization, and implementation of programs for the development of Khadi and other village industries, including the handmade paper industry. Since then KVIC has kept this industry alive in India by giving many incentives to handmade paper units for employment generation in rural areas at a relatively low capital investment. These incentives include: financial assistance at a low rate of interest with long-term repayment schedules; free training to artisans, supervisory staff, and entrepreneurs, with stipends; and exemption of excise duty, sales tax, and octrio. The hand papermakers are further supported by the government's decision to exclusively purchase certain varieties of handmade papers for its own use. The Indian handmade paper industry has made considerable progress over the past thirty-nine years. The production of handmade paper has increased from a meagre 204 tons per annum in 1953 to 7500 tons last year, including drawing, bond, and watermarked certificate papers, marbled and decorative papers, blotting and filter papers, cardboard, and stationery items. This variety of products is created through the use of old and new rags, hosiery cuttings, waste paper, and jute fibers. This aids the environment by not using any forest-based raw material. Due to a low capacity utilization of about 62% and poor quality products, many units are either struggling or unviable, in spite of massive government support. Since handmade papers currently produced cannot compete with special grade papers available in markets abroad, exports have not increased considerably. Moreover, there is a shortage of suitable equipment and skills comparable to other countries. Therefore, for the overall development of the industry, there was seen to be a need to upgrade the technology to increase productivity and to improve quality, to find alternative raw materials, to properly train personnel, and to encourage higher exports of handmade papers. KVIC, under the overall guidance of Dr. Yashvir Singh, the chairman, and Kamal Taori, the chief executive officer, with the assistance of the United Nations Development Program (UNDP), started a project on handmade paper in September 1991. This project to strengthen the handmade paper industry in India will span three years. Located in Sanganer, Jaipur (Rajasthan), it is supported by KVIC, UNDP, and the United Nations Industrial Development Organization (UNIDO). International personnel involved in the project are: Simon Barcham Green of the UK, Chief Technical Adviser; Alexandra Soteriou of the US, Papermaking Expert; and Peter Serlachius of Finland, Marketing Expert. The project has three immediate objectives. The first is to study the demand pattern of different varieties of handmade paper in India and abroad. The second is to set up a testing laboratory and demonstration plant. Finally, the project aims to train staff in order to provide long-term training and consultancy to the industry. To achieve the first objective, detailed survey reports showing present and future demands and quality requirements for domestic consumption in India and abroad will be prepared. This includes market surveys in Europe, Canada, and USA. Early reports are encouraging, with some export orders already coming in as a result of the survey. In addition, a survey to analyze the Indian home market and present sales outlets is being conducted. A well-equipped demonstration center for producing high quality handmade paper products will be set up to give better services and advice to the rural units in the country. The testing laboratory will be used to study improvements in pulping processes and to achieve a better understanding of the possibilities of using more locally available fibrous raw materials for handmade paper and board. The laboratory will also be used to develop a number of new paper products for both inland consumption and export, and to improve the quality of the products. As part of this larger educational effort, two national workshops will be held for the handmade paper manufacturing units in India, with the participation of international consultants and the Chief Technical Advisor. Three acres of land in Bambala village near Sanganer have been acquired, and construction of the building for the laboratory and pilot plant is expected to be completed by January 1993. The Chief Technical Adviser has already visited the country twice and has started coordinating the project activities, in consultation with national project authorities. A consultant in pulping processes will critically evaluate the existing processes and will also recommend technologies suitable both for village type pulping activities and for producing pulp by using suitable, locally available raw materials. The Papermaking Expert has worked on the development of some prototypes of greeting cards and folders through block, screen, and offset printing. A specialty paper consultant will teach techniques and the skills for making specialty handmade papers to the technical staff of KVIC, and will introduce methods and equipment for making such grades of paper as are in demand in developed countries. To enhance the capability of the project in the functional areas of training, consultancy, and information services to serve the Indian handmade paper industry, the project is funding fellowship training abroad for eight fellows from KVIC technical staff, as well as training in India by outside consultants. Consultants on pulping, papermaking, and specialty paper will train local personnel both at the demonstration center and in the field in improved ways of pulping and papermaking. Several persons have already visited Japan and Europe on a one month Technical Study Tour to research handmade papermaking abroad. Two additional persons will attend fellowship training in Autumn 1992. In addition, three batches of five artisans will be trained in the center during the project. After the end of the project this kind of training will be continued. The project has also participated in an exhibition, "Enterprise 92", organized by the Confederation of Engineering Industries at Bombay and also at a national stationery show held in New York City. The Indian handmade papers and paper products displayed got a lot of attention at the show. By the end of the project it is hoped that we will have identified new products in India as well as abroad and will have started their production in selected papermaking units. We will also have set up the demonstration plant and testing laboratory to provide consultancy services and training to the industry by key center personnel. We hope to raise capacity utilization to 75%, through effective process improvements. The project will be responsible for the installation of new units and will review the status of struggling and dormant units. Finally, a means will be set up to disseminate technology and skills to the industry in India. The ultimate beneficiaries of this entire project are two-fold: Indian handmade paper units and unemployed rural youths. Through the various development activities of this project we hope to revive the economic opportunities of the latter through ensuring the revitalization and prolonged success of the former.
