HIMACHAL PRADESH MID HIMALAYAN WATERSHED
DEVELOPMENT PROJECT
COMPONENT THREE: ENHANCIMG MOUNTAIN LIVELIHOOD
Sub component
: Income generation for vulnerable groups
WOOLLEN –KNITTING SUB PROJECT
Prepared by:
Dr Praveen K Jain
HP Mid-Himalayan Watershed Development Project
Dharamshala, Himachal Pradesh, 176215
+91-98-160-32528
[email protected]
VISION
Himachal Pradesh (HP) is a mountainous state situated in Western Himalayas and known
for its natural beauty and rich cultural and religious heritage. The state has diverse ecosystems,
rivers and valleys ,and has a population of 6 million and cover 55,673 sq.km ranging from
foothills of Shivaliks to the midhills (800-1600 mts above MSL), high hills and cold dry zones of
the upper Himalayas. Despite the growing importance of tourism etc. the economy of the state is
chiefly agrarian as nine out
of ten households are rural
and 80% of the people are
involved in agriculture and
contribute 22 % of the
GDP as compared to 13 %
from secondary and 65%
from the tertiary sector.
The cultivated area
accounts
for
6.2
lakh
hectares and 80 % of this
area is rainfed, with very
poor productivity. Moreover there is a little scope to further improve the same due to scarcity of
water. The scenario in case of animals (5.2 million) is not different as most of the animals are
poor in production or are not productive at all. The improvement is less in the present scenario
when the state is already running shortage of approximately 54.2 % and 38.2 % green and dry
forage respectively. Due to low per capita income of the farmers their nutrition status is also low
and most of them are malnutritious. As milk contribute very little in their dietary schedule. So we
have to look for some other alternate for the poorest segment of the people (vulnerable groups)
that may add to his income as well as to his nutrition. So that he may have better health and
economy by additional livelihood activity.
Sub- project Proposal Format
1.
Identification
Ward
Village
Panchayat
Block
District
2.
1-2
Pookri
Pookri
Batiyaat
Chamba
Details of the Group
Name of the group
Number of member in the group
Name of the group leader/president
Father’s name
Name of group secretary
Father’s name
Name of the group account signatory (1)
Father’s name
Name of the group account signatory (2)
Father’s name
Name and address of bank
Bank account number
Name of resource person
Contact no
3.
Ganga, Saraswati
15 Each
Omi, Kaushalya
Anita, Phoolno Devi
Anita, Maya
Hp Coop Bank Banikhet
6299
Vimla devi
9418250622
Details of Beneficiaries
S.N.
1.
2.
3.
4.
5.
6.
Name of the
beneficiary
Father’s/
husband’s name
Village Sex
Caste
Age
7.
8.
9.
10.
4.
Village wise details of Beneficiaries if they are from more than one village
(To be prepared for each participating village separately)
S.N
Mohalla/ward
Total number of
beneficiary family
Castes
1.
2.
3.
5.
Objectives the Sub-project
1. To create sustainable employment opportunities and income for the vulnerable group
(ESPECIALLY WOMEN)
2. Capacity building of members of community level organization (SHGs, CIGs, etc.).
3. To improve the skills of knitting.
4. To capture a potential market for handy crafts .
5. Teamwork and leadership and build up of self confidence.
6.
Nature of the proposed sub-project activity
a) On-farm
b) Non-farm
c) Production related
d) Processing related
e) Services related
f) Trade related
7.
Measure sub-project activities
Community mobilization: meeting with community, imparting knowledge of project
especially livelihood options
Group Forming: Forming group of interested and eligible members concerning to the
activities, forming bye laws/constitutions, fixing duties and responsibilities within group.
They will elect amongst themselves a president, secretary and a cashier.
Capacity building: Exposure visits and training to the group members by resource person
will be trained that will further disseminate the technical knowhow to other community
members.
Making of the woolen products : Buying the knitting machine and raw material and then
making of the socks and other woolen products.
Market Linkage: Establishment of better market linkages between producer and buyer.
8.
Market description
a) Which market will be targeted
A good tourist market is available in nearby towns like Dalhousie,
Banikhet , nurpur etc and a city market at around 75 km in Pathankot.
b) Size and location of the market
Local
Nearby towns /cities
c) Raw material procurement
Locally available
d) Price considerations
Depends upon the market (generally the sale price is kept by excluding the
labor by women as the profit is considered as the reward of part time
employment)
e) Promotion strategy
To promote the production in bulk only than a big market can be captured
Some brand name promotion. Still lots of scope to capture the market of
Kullu products.
9.
Operation strategy
a) Site and facilities available
To start with the industry can be started in some rental space in the village
or in some abandoned building or set up of like some halls in Panchayat
Bhawans etc.
b) Equipment and/or machines available and required
Hand knitting machine
Wool
c) Transportation and storage
Easily trough local transport bus etc
d) Timetable and schedules
A year round activity. Production and sale may vary with the season. But tourist
Market is available the full year.
e) Monitoring and maintenance system
At the initial stage we will do base line survey and yearly survey will be
conducted of the beneficiaries. Key indicators for the monitoring are as:
- Increase in production
-
Size of the group
-
Number of units sold
-
Increase in production
o Replication
10. Inputs and resources required
a) Physical
Space of working
b) Material
Hand knitting machine
Wool
c) Financial
For the knitting machine available at the 90/10 ratio in the project & initially
supported by the raw material also.
d) Human
Traininer is available at the rate of 210.00 /- per member training for one week.
e) Technical
Skill oriented activity , no technical know how
11. Expected Benefits
•
To create sustainable employment opportunities and income for the vulnerable group
(ESPECIALLY WOMEN)
•
Capacity building of members of community level organization (SHGs, CIGs, etc.).
•
To improve the skills.
•
To capture a potential market for handy crafts
•
Teamwork and leadership and build up of self confidence.
12. Details
Expenditure head
Details
Non recurring expenses
Instruments and hand
knitting machine 5 no @
4175/Training @210/-
Recurring expenses
Given in appendix
Subtotal (A)
Raw Material/wool
Administrative and
supervision cost
Labor
Rent
Electricity
Water
Business Promotion
Telephone and postage
Stationery
Miscellaneous
Subtotal (B)
Total sub-project cost (A+B)
Amount in Rs
COST BENEFIT ANALYSIS
Sno
1
2
1
2
S
n
o
1
2
3
4
5
6
Particulars
Fixed Costs
Hand Knitting Machine
Training /Capacity Buliding
Variable Costs
Wool For Socks
Wool For Shawls
Nos
Rate
5
15
4175
210
1000 g
1000 g
300
500
VALUE CHAIN FOR WOOLLEN SUB PROJECT
Units
Sale
No/ Wool
Per
Cost
Total
Price
Item
Day /Unit Month /Unit
Cost
/Unit
Socks
5.00
100
150
46
6900
55
Baby Suits
2
300
60
130
7800
250
Shawls
3
500
90
277
24900
350
Muflars
8
200
240
110
26400
150
Caps
7
100
210
41
8700
50
Sweaters
2
550
60
205
12300
250
Depreciation on fixed cost @ 5%
1201
Profit/ Month
Profit/Year
Total
Total
Sale
8250
15000
31500
36000
10500
15000
88201
116250
1058415
1395000
13. Sources of finance
a) Group/own contribution
Rs. 2088.00
b) Project grant
Rs.18787.00
c) Loan/credit from financial institutions
Rs.-
14. Cost of production (per month)
a) Monthly Recurring expenses
Rs.87000.00
b) Depreciation on machine and building, etc.
Rs.1201.00
c) Interest on loan
Rs.
15. Income (per month)
a) Sale of product
Rs.116250.00
b) Bank interest
Rs.
20875
3150
Profit
1350
7200
6600
9600
1800
2700
29250
35100
0
Per
Women
1950
23400
16. Profit (per month)
Income in Rs. -
Cost of production in Rs.
116250.00
88201.00
17.
Profit in Rs.
29250.00
Per women
1950.00
Resolution of the group
Decision to undertake the above sub-project by the group was taken in the group’s
general meeting held on (date) ______________, at _______________.
Signature of the group secretary
Signature of the group president/leader
Members of Laxmi SHG
who make knitting group
The knitting machines as provided by
the project
“women group learning from the resource person
smt, vimla devi .
Wool as used for making woolen products
Women displaying the woolen sweater
they made on the knitting machine
provided to them
woolen products made on the knitting
machine provided to the group