Enabling Rural Citizens through Innovations in ICT IIT Madras ashok Jhunjhunwala, IITM, India, ashok@tenet. res. in
Over the last two hundred years, 4 billion people in the developing world have been left behind q How can they stand up and be counted? q How will they get access to resources, health and education? q How will they be able to compete? q How will they bridge the distance with their urban counterparts or those in the developed world? q India was in this category in the recent past 4 4 Urban India has changed will use it as an example to talk about what can be done
India was struggling in eighties q One had to wait for eight years to get a telephone q Deposit money to get in a queue 4 4 q To buy a two-wheeler took four years Gas connection took even longer Importing a simple $3 microprocessor IC took one year Life was difficult IIT Madras
Changing Indian Affordability: 65 M urban homes 2001 30 25 Nos of HH in M 20 15 10 2007 5 0 IIT Madras <150 225 470 825 1560 Monthly HH Income in $ >2075
Mobile Market in India boomed 5 million 50 million 150 million 400 million q Not until Mobile Infrastructure Capex < Rs 3000 per line 4 and with handset price of Rs 1200 onwards service available at 50 p per minute ARPU of about Rs 250 4 7 million subscribers added each month 4 4 Just Like number of TVs in India rose from 10 million to 100 million in 90’s when prices became Rs 1200 onwards and cable TV tariff fell below Rs 75 per month • Number of TV channels boomed • Entertainment industry in India one of the biggest IIT Madras
Even Airline Industry q Is booming in India quadrupled its passenger carrying capacity in two years 4 Average tariffs have fallen to a fourth making it affordable to middle class Indians 4 8 Inspite of rising petrol prices The only limitation to growth is the airport infrastructure IIT Madras
India on Move q Auto Sector is booming 4 R&D driven initiative: Scorpio and Tata-Indica 4 India emerging as leader in auto-component design and manufacturing q India’s cement plants in 90’s virtually closed as they could not compete 4 q Electricity from wind energy surpasses its nuclear energy 4 q Today India has some of the most energy efficient cement plants of the world India’s wind energy company is the fastest growing one in the world Indian companies carrying out successful Drug discovery 4 Spends US$50 -70 M as opposed to US$800 M for a drug IIT Madras
Engineering Education q 500 K engineering students graduate every year from 1600 engineering colleges 8 4 Up from 25, 000 in 100 schools in early eighties Uneven quality is a major problem 8 was foreseen and resulted in reluctance to expand But it is this human resources which has driven growth IIT Madras
q Growth of IT and IT enabled services is legendary 4 Reaching $50 billion this year 4 Trillion dollar IT Services industry being projected The World is Flat But you aint seen nothin yet for the changes has not yet touched Rural India IIT Madras
Politically unsustainable But Rural India is still struggling 637, 000 villages, 700 million people Per capita GDP about $200 Can ICT make a difference? Rural Priority is Education, Health and Livelihood IIT Madras
Changing Indian Affordability: 150 M rural homes 2001 80 Nos of HH in M 70 60 50 40 30 20 2007 10 0 IIT Madras <150 225 470 825 1560 Monthly HH Income in $ >2075
Fibre goes deep in India q All block headquarters are connected by optical fibre 4 Most villages are within 15 Kms from Block towns 4 Last mile technologies are rapidly emerging q Broadband Cor. DECT Wi. LL developed at IITM, India 8 8 provides a telephone line and 256 kbps Internet connection in 25 Km radius Exchange and tower in town – Works at 55 C – Power requirement: 1 KW – start-up costs very low Newer technologies emerging 4 Promising 1/2 Mbps connectivity 8 8 with OFDM (like 802. 16 / Wi. Max) with HDR and HSDPA Rs 10 K per line deployed Exchange and tower in town
Innovative Business Models q Rural Service Providers 4 aggregate demand into a kiosk owned & driven by a local entrepreneur 4 Rs 50 K per Kiosk providing telephone, Internet, multimedia PC 4 with web-camera, printer and power back-up for PC 8 4 plus local language software, video conferencing software, training and maintenance and 6 months unlimited Internet set up by a village entrepreneur on the lines of urban PCOs 8 8 Provides multiple services to break even Needs Rs 5 K pm to break even
Rural Services – An Overview Capacity Building – – Education Health Enabling Services Income Generation – – – IIT Madras Agriculture Entrepreneurship Outsourcing – Finance – Markets (exchanges /trading) – e-Governance – Water Management – Energy – Communications and Transportation
3 - (Rating carried out on 0 to 5 scale to indicate where India is) Education Towards enabling Rural Areas…. IIT Madras
Education q Curriculum based 4 q Skill based 4 4 q Passing SSLC: excellent results Spoken English Computer Basics CAD, Web development, Photoshop Repair pumps, wire for electricity, carpentry Concept based 4 Science and Business concepts IIT Madras
From London, Boston, NY To Bangalore, Mumbai and Delhi 2 Then Jaipur, Mangalore, and Pune Is it the turn of Shikrapur, Modaj and Mettupalliyam? Rural BPO Towards enabling Rural Areas…. IIT Madras
Services Provided …. In English and Regional Languages Audio Recording & Editing Web & Multimedia Development Engineering Services 4 Translation Desktop Publishing 4 4 ITe. S Administrative Service Overview 4 11 Months 50 People 20 Villages 13 Clients Input 2 D drawing Output 3 D model
Desi Crew q Rural BPO Services 4 Administrative 8 8 4 Localization (English to regional languages) 8 8 4 Translation Voice Over Engineering 8 8 IIT Madras Data Entry Data Conversion 2 D drafting 2 D to 3 D conversion
As Chennai becomes the manufacturing hub for Nokia and BMW… 1 - Can Pinjavakkam become the production hub for Chennai? Rural Production Towards enabling Rural Areas…. IIT Madras
CLIENT • FOR LEADER • • CLIENT Visual Access to production Delivery of order Infrastructure Working Capital Production Processes q q ROPE Design Order • • • Order Skill Enhancement Quality Management RPC RPC RPC LEADER RPC WORKERS FOR WORKERS FOR CLIENT THE MODEL
RPO: Distributed Production enabled by Internet Outsourcing production to rural areas 4 Kiosk becomes a point of co-ordination & quality control The ‘Crafts for Life’ projects include 4 4 4 Embroidery Bags Soap Banana Rope Dry Flowers
Training in making dried banana bark rope making facilitated by ICT entrepreneur Jayamalathi at Thirupandrutti. • Building and Aggregating Distributed Rural Production Units as back end for industries • Focus Sectors: Crafts, Leather, Garments, Agro Processing IIT Madras
PRODUCTS ROPE Banana Fiber Table Mat BF with Jute Placemat Bamboo Fiber Placemat Banana Fiber Window Blind Korai Grass Runners
Training & Recruitment: Industry Client RTBI: Networking, Logistics & Monitoring Operation ICT Kiosk: ICT Infrastructure and Marketing Vocational Training IIT Madras Focus Sectors: Security Personnel Skilled Construction Workers Sales persons Home Service Agents
Remote Eye Care with Aravind Hospitals 1+ Vet care with Veterinary college Telemedicine: q q Initial experiments with eye care and with Veterinary doctors using the video conferencing tool Moved on to video-consulting for GP & gynecology problems Healthcare Towards enabling Rural Areas…. IIT Madras
REMEDI™ TELE-MEDICINE SOLUTION Kiosk Operator Healthcare Delivery Identification of village healthcare delivery centers Local Partner Hosp Pharma Companies Re. Me. Di™ Telemedicine Kit Linkage with a hospital partner via Re. Me. Di™ telemedicine solution Supply and delivery of essential medicines IIT Madras RP RP
1 Agriculture Towards enabling Rural Areas…. IIT Madras
Managing Risks for farmers Crop disease: Use of video conferencing to connect farmer to an agricultural Expert 4 Obtaining answers before it is too late Before In a Village in Madurai, the Lady’s Finger (Okra) crop was turning white The problem was sent to the experts at the Department of Rural Extension, Madurai Agricultural College and Research Centre who diagnosed it as “Yellow Mosaic disease” After
Production and Price Risk Coverage q Rain-fall insurance 4 Micro-weather Measurement and prediction 8 Collect weather data at each village – Temperature, humidity, pressure, wind speed, wind direction and rainfall 8 q Weather Monitoring Kit : Rs 15 K Market risk: use of commodity exchanges forward pricing and Options 4 Can one get small farmers to use it? IIT Madras
Agriculture q q q Agro Processing Agricultural Advisory Services Agricultural Supply Chain Management Focus: Fruits and Vegetables in Theni District of Tamil Nadu Strategy: To link markets, banks, extension partners and suppliers to small farmers
Facilitate Sales and post-harvest support q Use of Village Internet kiosk and mobile phones for Obtaining market-prices in different Markets 4 Transaction and deal-closing from villages 4 Scheduling delivery 4 Booking of transport 4 Direct payment through banks and loan repayment 4 IIT Madras
1 Financial Services Towards enabling Rural Areas…. IIT Madras
Financing by banks from towns is expensive Is Microfinance the answer 4 Has made great strides, but what is the interest rate? 8 At 24 to 30% interest rate it is good loan for – Trading and Short term consumption loans – But not for any manufacturing / agriculture? q Can kiosks become mini-banks? 4 Internet banking: But how will cash be delivered? q Can kiosks carry out credit-rating of rural people? q What about Insurance? 4 Can they enable different kinds of insurance? 8 IIT Madras Life Insurance, health insurance, General Insurance, rainfall insurance
We could put Internet in every village but for its cost? q Te. Ne. T / Vor. Tex develops ATM 4 4 4 Finger print detection Internet kiosk based or Stand alone Deliver even soiled notes Single denomination today 8 Can be extended to multiple denomination 8 4 4 Electronic Lock operated using finger print detection Cost about Rs 60 K for kiosk ATM / Rs 75 K for stand alone Vortex Grama. Teller initiative, reducing the cost of ATM to 1/15 th
Towards Credit Rating
0+ Rural Business, Transportation, Energy & others Towards enabling Rural Areas…. IIT Madras
Rural Businesses q Agriculture, food processing & other small businesses 4 4 Can they be enabled by ICT kiosks? Does technology play a significant role in supply chain management & co-ordination? Can they be used for market linkages & pricing mechanisms? Can kiosks be used to find jobs? Exploring to understand the evolution of rural businesses and the role of technology in such businesses IIT Madras
Decentralized Energy q Grid based Power Supply 4 Quality and availability Urban Power will take precedence 8 Rural India will only get overflow 8 q Each Village require 30 KW to 100 KW Power Generation 4 4 q Solar Biomass Combustion Biogas Bio-diesel Can kiosk be used to enable this?
Community Oriented Services q Rural Development programs 4 4 4 q q Water Management Soil Management Road construction Social harmony and religious tolerance Promoting entrepreneurship IIT Madras
q q q ICT can provide opportunities for those who have been left behind q to leapfrog q provided there is will Requires q Confidence, Local technologies & Services and lots of hard work Rural Areas in emerging Markets can follow their urban counterpart To Sum Up Towards enabling Rural Areas….
Today q India consumes 4 Less than one twentieth of per capita resource as compared to that in the West 8 q as per International Energy Agency Statistics Division, India consumed 512. 4 Kg of oil equivalent of energy person as opposed to 7794 Kg of oil equivalent person in USA in 2003 If India and China grow like West? q And their per capita resource consumption of 1. 4 billion Chinese and 1. 1 billion Indians reach the level in the West This can not be our future 4 4 Nature is already retaliating Technology can help but cant support consumption beyond a point
A dilemma q India and China can not be asked to wait to get out of their deprived state q AND they can not grow and acquire the same lifestyle as that of the West IIT Madras
Need q To redefine development 4 Not accept the industrial revolution Development paradigm Technology can find all the answers 8 Urban life is better life 8 q Good life need not imply 4 Such large consumption 4 Migrating Rural Indians to Urban areas is not the answer 8 IIT Madras With health, education, a bit of infrastructure and livelihood opportunity, life in Rural India may be better than in urban areas
Urban India and China has done well q q Growth in China stupendous India started late, but is racing today 4 4 But most growth limited to urban areas Rural Areas are being left behind 8 IIT Madras 700 M out of 1 B people live in Rural India
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