Pan IIT Foundation for Rural Transformation

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Pan IIT Foundation for Rural Transformation
Praveen Kumar and Vineet Agrawal
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IITian strength

• 120,000 alumni
• Represents diversity of India
• Proven themselves in different fields
• Contributed significantly to bring India on the
  global map

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How do we now impact the nation

• By getting involved in nation building
• Biggest challenge and opportunity lies in rural
  India
• Two out of three Indians live in villages
• A lot of good work is being done in rural India
  unfortunately disjointed

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Pan IIT Foundation for Rural Transformation
(PiFort)

• To develop and implement strategies to
  transformRural India
• To bring convergence of effort

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Challenges in Rural India

• Low level development trap
• Low income, lower purchasing power, low
  development, poverty
• Migration to urban areas for jobs
• Middlemen and wastages

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Opportunity for Rural India

• Post WTO new opportunities have emerged e.g. Food
  importing countries like Japan and Korea are
  looking to establish reliable sources of food
  supply

Brewing problems in China to open new vistas for
India in food sector Financial Express Dec 1,
2004
Create a supply chain for Rural produce
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The three initiatives

• Production group
• - Increasing productivity and reducing
  wastages
• Business group
• - Marketing and distribution
• Habitat group
• - Creating physical and social infrastructure

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Challenges of Production

• Farmer is an entrepreneur, faces extraordinary
  risks
• Fragmented community
• He is exploited
• - In the purchase of inputs
• - In the sale of his produce
• - In obtaining working capital

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Formation of jointly owned business entities of
farmers

• Around 40-70 stocks are owned by farmers
• Annual turnover of about 10-25 million
• Are managed by professionals
• Stocks are tradeable among members
• Value addition
• Guidance to farmers

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Challenges in distribution

• Middle men
• Seven layers between
• farmer and consumer
• Wastages

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Marketing group

• Eliminate wastages
• Eliminate middlemen
• Efficient logistics
• Distribution
• Retailing
• Domestic and International marketing

Multiply farmers income
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Challenges of Urbanization

• Unemployment migration to cities
• Villagers aspire for better amenities
• Even educated are unemployed

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Habitat group

• For modern day amenities require concentration of
  population
• Establishment of 3,000 employment hubs in rural
  areas
• By 2050 these hubs will have population of about
  750 million

Each Hub is connected to other Hubs with modern
transportation, energy, telecom grids and to
150-200 villages around it
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Total employment generation potential in next 10
years is 110-120 million

• Agro processing 20-30 m
• Construction 30-40 m
• Textiles 10 m
• Education 5-10 m
• Other industrial sector -10 m
• Other service sector 40-50 m
• Creating 300-350 m rural consumers with family
  income of
• Rs. 2.5 lacs p.a.

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Investment opportunity over 10 years of 1
Trillion
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Govt. at State and Centre - Lead role in setting
up of these 3,500 hubs.
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Funding - International development banks FIs
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Private Sector set up new businesses,
industries, services, construction of
infrastructure.
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PiFort Advocacy, Networking and ensure creation
of necessary lead organizations and thinking
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PiFort has already initiated Action Groups

• Production group Creation of rural business
  entities, employment generation
• Business Group Investment, finance, supply
  chain - distribution, marketing, retailing and
  logistics
• Urbanisation Group Planning, infrastructure,
  construction, social infrastructure and ambience