SUMMER INTERNSHIP PROJECT REPORT

ON

Benchmarking ODOP against similar foreign policies and Policy framework formation
for ODOP

A report submitted in partial fulfilment of the requirements for the Two Year Full Time
Post-Graduation Diploma Management
2018-20

Under the mentorship of

Mr. Vinay Sharma Mr. Tophan Patra
Vice President, Government Advisory (Assistant Professor)
Transaction Advisory Services IMS, Ghaziabad
Ernst & Young LLP.

By
Udbhav Srivastava
Roll No: - BM-018343

Institute of Management Studies, Ghaziabad

i
 CERTIFICATE OF ORIGINALITY

I hereby declare that this Summer Internship Project is my own work and that, to the best of
my knowledge and belief, it reproduces no material previously published or written that has
been accepted for the award of any other degree of diploma, except where due
acknowledgement has been made in the text.

UDBHAV SRIVASTAVA
Enrolment No. – BM-018343
Date:

ii
INDUSTRY CERTIFICATE

iii
 FACULTY MENTOR’S CERTIFICATE

This is to certify that Mr. UDBHAV SRIVASTAVA, PGDM (2018-20 Batch) a student of
I.M.S. Ghaziabad, has undertaken the project on “Benchmarking ODOP against similar
foreign policies and Policy framework formation for ODOP”. To the best of my knowledge,
the survey, data collection, & analysis work for preparing the project has been carried out by
the student in partial fulfilment of the requirements for the award of PGDM, under my guidance
and supervision.

I am satisfied with the work of Mr. Udbhav Srivastava.

Date:

Faculty Mentor’s Name: Mr. Tophan Patra

(Signature)

iv
 ACKNOWLEDGEMENT

I would like to take this opportunity to extend my sincere thanks to IMS GHAZIABAD and
ERNST AND YOUNG, for offering a unique platform to earn exposure and knowledge in
the field of MARKETING.

First of all, I would like to express my profound gratitude to our Director Dr. Alok Pandey for
his motivating words and endeavours for every student. I’d like to express my sincere thanks
to our Dean Academics, Dr. Tapan kumar Nayak for his continuous efforts for the learning
and academic excellence.

I would also like to express my profound gratitude to my faculty guide Dr. Tophan Patra for
his constructive support during the summer internship period, which lead to successful
completion of my internship at Ernst and Young, Lucknow.

I extend my heartfelt gratitude my project guide Mr. Vinay Sharma, VP, Government
Advisory, Ernst and Young, Lucknow, for having my summer training a great learning
experience by giving me his guidance and encouragement.

Udbhav Srivastava

BM-018343

Institute Of Management Studies, Ghaziabad

v
 Executive Synopsis

The project focuses on benchmarking One District One Product (ODOP) initiative of
Government of Uttar Pradesh against similar schemes implemented in the international
scenario, i.e. One Tambon One Product in Thailand and One Village One Product in Japan.
The implementation model and the underlying objectives of both the schemes were studies and
insights were drawn from the policies which they implemented. Based on the insights,
suggestions and feedback have been provided to successfully try a similar approach in the
ODOP context. Some important suggestions which have been provided are- Collaboration with
the Department of Tourism to connect ODOP to cultural tourism –showcasing the heritage of
each district of the state, focusing on Women Empowerment through ODOP, Star Rating of
Products as per quality, Product Championship Events.

In addition to the above mentioned suggestions, a training cum financial assistance framework
has been built keeping in mind the unskilled and unemployed youth of Uttar Pradesh to provide
them technical skills and entrepreneurial abilities. The framework would go a long way in
reducing the unemployment level of the state and would provide a boost to the economy and
welfare of the state

vi
 Table of Contents

S No. Title Page No.

1 Executive Synopsis 00
2 Introduction 02
3 Objective 09
4 Literature review 10
5 Research Methodology 14
6 Recommendations 16
7 Training cum Financial Assistance Framework 19
8 Limitations and Future Scope of Work 26
9 References 27

1
 INTRODUCTION

About the Company

Ernst & Young is one of the world’s leading professional services firm with operations in over
150 countries. Ernst & Young employs more than 212,000 personnel providing an unmatched
depth and variety of specialized services. This worldwide organization enables their clients to
take full advantage of the resources that are available and helps the company to serve their
clients with a level of quality and consistency that is superior to that of their competitors.
Among international firms, Ernst & Young has one of the largest public sector practices with
nearly a century of service devoted to the public sector and an internal structure to support and
enhance their services to Governments and international donor agencies.

Ernst & Young, India is a member of the Ernst & Young network and operates from 12 cities
with a work force of over 22,000 people. The firm has serviced a wide array of government
and public sector clients across multiple areas. EY India provides high quality services to
clients in India and abroad and has demonstrated its capability by effectively carrying out a
wide variety of business advisory services and other related professional assignments similar
to this one.

Ernst & Young, LLP is the Project Management Consultant for implementation of Uttar
Pradesh One District One Product Scheme.

About the ODOP Project

Launched on 25th January, 2018, the ODOP (One District One Product) Scheme is one of the
schemes for promotion of MSME in state through tailor-made approach. The scheme has been
launched to strengthen the MSME ecosystem and to promote export of handicrafts from Uttar
Pradesh, which contributes 44% to total export of handicrafts from the country.With significant
contribution of 39% in carpets and 26% in leather and leather products, the share of Uttar
Pradesh in total exports from the country is 4.73%.

The ODOP programme is expected to benefit 25 lakh artisans and entrepreneurs of the MSME
sector throughout the state.

2
The concept of ODOP in state stands well with each district identified by unique products in
handicraft, handloom and other sectors including Agri-products and horticulture. Myriad forms
of handicraft and handloom adorns the state, be it Banarsi saree from Varanasi, brass from
Moradabad, Shajar stones etc. this provides immense opportunity for state to leverage on its
resources and enhance the income and employment opportunity. The Government of Uttar
Pradesh has setup an ODOP Cell under the Department of MSME to implement the ODOP
scheme across the State and also improve the export potential of each product identified under
the ODOP scheme. This also includes promotion, branding and marketing of the scheme
products.

List of Products

The list of products, one from each state, has been divided into clusters (like leathercraft, food
processing, woodwork etc) for easy classification. The clusters are as follows-

1- Metal (7 products)
Districts-7 Products
Aligarh Locks and Hardware
Etah Ghoongro & Ghanti
Ghaziabad Engineering Goods
Kanpur Dehat Utensils
Moradabad Metal Craft
Sant Kabir Nagar Brass Ware Craft
Shamli Rim and Axle

2-Woodwork (5 products)
Districs-8 Products
Amroha Dholak
Chitrakoot Wooden toys
Maharajganj Furniture
Pilibhit Flute
Saharanpur, Basti, Bijnor, Raebareli Wood Craft

3
 3- Textile and Apparel (12 products)
Districts-25 Products
Badaun, Bareilly, Chandauli, Kasganj, Unao, Lucknow,
Shahjahanpur Zari Products
Baghpat, Hapur, Fatehpur Home Furnishing
Barabanki, Ambedkar Nagar, Etawah Textile Products
Bhadohi, Mirzapur, Sonbhadra Carpets
Deoria Decorative products
Farrukhabad Block Printing
Gautam Buddh Nagar Readymade Garments
Hardoi Handloom
Jaunpur, Sitapur Dari & Carpets
Lalitpur Zari Silk Sari
Lucknow Chikankari
Mau Powerloom Textile

4-Food Processing (8 Products)

Districts-10 Products
Balrampur, Gonda Food Processing (Pulses)
Banda Stone Craft (Shazar)
Faizabad, Muzzafarnagar Jaggery
Hathras HingPrasankaran
Kaushambi Food Processing (Banana)
Pratapgarh Food Processing (Amla)
Siddhharthnagar Kala Namak(Chawal)
Auraiya Food Processing (Desi Ghee)

5-Leather Products (2 Products)

Districts- 3 Products
Hamirpur Juti
Kanpur Nagar, Agra Leather

4
 6- Handicrafts (13 Products)
Districts-16 Products
Azamgarh Black Clay Pottery
Bahraich Crafts with stalk
Bulandshahar Pottery (Ceramic)
Firozabad Glassware
Ghazipur Wall Hangings (Jute)
Gorakhpur Terracotta
Jalaun Handmade Paper
Kushinagar Banana Fibre Products
LakhimpurKheri, Shravasti Tribal Craft
Mahoba Stone Craft (Guera)
Mainpuri Tarkashi Art
Prayagraj, Amethi, Sultanpur Moonj Products
Rampur Patchwork

7-Other (6
Products)
Districts- 6 Products
Ballia Tikuli (Bindi)
Jhansi Soft Toys
Kannauj Attar & Scents
Meerut Sports Products
Varanasi Banarasi Silk Sarees
Sambhal Horn and Bone Products

List of Approved Schemes under ODOP

For the benefit of artisans and entrepreneurs, various schemes have been approved to cater to
the marketing, financial, technical training & skill development and product testing and
certification needs of the product portfolio. A brief description of the above-mentioned
schemes is as follows-

Market Development Assistance (MDA)

Marketing Development Assistance (MDA) Scheme provides benefits to the artisans,
entrepreneurs and exporters for financial assistance for participation in trade fairs / events /
summits within the State, financial assistance for participation in trade fairs / events / summits

5
outside the State (Nationally) financial assistance for participation in trade fairs / events /
summits outside the country, financial assistance for doing trade through ecommerce portals.

Under the scheme the financial assistance shall be given as follows:

S.No Objective Financial Assistance

1. Participation in - 75 % of the stall charge. Maximum Rs50,000/-
trade fairs / events
- 75% of the transportation charges from House/
/ summits within
Factory / Warehouse to the fair / event / summit.
the State
Maximum Rs7,500/-
- To & Fro, Third AC Railway ticket or AC Bus ticket
for one person (On actual)
2. Participation in - 75 % of the stall charge. Maximum Rs50,000/-
trade fairs / events
- 75% of the transportation charges from House/
/ summits within
Factory / Warehouse to the fair / event / summit.
outside the State
Maximum Rs15,000/-
- To & Fro, Third AC Railway ticket or AC Bus ticket
for one person (on actual)
3. Participation in - 75 % of the stall charge. Maximum Rs2,00,000/-
trade fairs / events
- 75% of the transportation charges from House/
/ summits outside
Factory / Warehouse to the fair / event / summit. (For
the Country
B2B maximum Rs25,000/- and B2C maximum
Rs50,000/-)
- To & Fro, Third AC Railway ticket or AC Bus ticket
for one person within the country and 75% of the total
cost of economy air ticket, maximum Rs75,000/-
4. Starting the 75 % of the registration charges or any other expenses to start
business / trading a business / trading through a renowned ecommerce portal.
through renowned Maximum Rs10000/- and the financial assistance shall be
ecommerce portal only for one ecommerce portal.

CFC –Common Facility Centre (Samanya Suvidha Kendra)

To boost the ODOP identified products through facilitation of raw material, Design and
production process, quality improvement, research and development, environment and energy
conservation, packaging etc. The components of CFC include-Testing Lab, Design
Development and Training Centre, Technical research and Development centre, Product
exhibition cum Selling Centre, Raw Material Bank / Common Resource Centre, Common

6
Production / Processing Centre, Common Logistics Centre, Information, Communication and
Broadcasting Centre, Packaging, Labelling and Barcoding facilities and a Nodal Centre for
Diagnostic Study. The establishment of CFCs will be done by a creating a Special Purpose
Vehicle (SPV) which can be any one of the following: Self Help Groups, co-operative NGOs,
volunteer organisations, producer companies, Pvt Ltd companies, LLC, LLP. Under this
scheme, expenses of the construction of the CFCs shall be limited to Rs15crore, wherein the
SPV will have to bear at least 10% of the cost and the rest by the State Government. Projects
worth more than Rs15crore can also be undertaken. However, the state reimbursement will be
limited up to only 12.75crores or the land cost would be deducted from the project cost,
whichever is lower.

Margin Money Scheme (Finance Assistance Scheme)

All nationalised banks, regional rural banks and other scheduled banks will finance the scheme
and the Department of Micro, Small and Medium Enterprises and Department of Export
Promotion shall release the ODOP margin money subsidy against all applications submitted
under the scheme.Enterprises with project cost upto INR 25 lakhs, 25% of the entire project
cost subject to a maximum of INR 6.25 lakhs, whichever is less, shall be payable under the
margin money scheme.Enterprises with project cost between INR 25 lakhs to 50 lakhs, INR
6.25 lakhs or 20% of the project cost whichever is more, shall be payable under the margin
money scheme.Enterprises with project cost between INR 50 lakhs to 150 lakhs, INR 10 lakhs
or 10% of the project cost, whichever is more, shall be payable under the margin money
scheme.Enterprises with project costs exceeding INR 150 lakhs, 10% of the entire amount
subject to maximum of INR 20 lakhs, whichever is less, shall be payable under the margin
money scheme.The margin money shall be merged with the subsidy after the enterprise has
successfully completed 2 years of operation. The beneficiaries from the General category shall
be required to bring in minimum of 10% of the project cost as own contribution. The
beneficiaries from the Special categories (SCs/STs, PH or Women) shall have to bring in 5%
of the project cost as own contribution. The Commissioner and Director of Industries, UP
Kanpur, shall reappropriate the number of beneficiaries inter-district keeping in view the
applications received from the districts. Under no circumstances, shall the applications received
exceed the sanctioned budget amount. This responsibility shall be ensured by Commissioner
and Director of Industries, UP Kanpur. Workingcapital for one cycle only shall be included
under capital investment (excluding the cost of land) in the project cost. The rental cost of

7
workshop/workshed can be included in the total project cost, but the cost of purchase of land
shall not be a part of the project cost.

Skill Development Scheme

This scheme aims to provide training and toolkits to craftsmen and entrepreneurs of certain
products registered under the ODOP initiative. The training includes general technical training,
basic and advanced crafts training, and business development training. The training aims to
improve the quality of products being produced, and to help create and promote an environment
of entrepreneurship for the artisans, to augment the demand of ODOP products in the market
and increased income for the artisans. The organisations such as Uttar Pradesh Skill
Development Mission (UPSDM), Entrepreneurship Development Organisations, ITI,
Polytechnic Colleges and other institutions certified by the Government of India to provide
such trainings would be eligible for the rendering the training to the artisans. The artisans who
are already trained will be certified by the respective Sector Skill Councils (SSC) or other
certifying institutions under the Recognition of Prior Learning (RPL). The untrained artisans
will be provided a training of 10 days, post which they would be assessed and certified by the
SSC or other certifying institutions. Each training batch would consist of a maximum of 25
artisans and the training would be free with accommodation included. In addition to this, an
allowance of Rs.200/day would be provided to each artisan through DBT (Direct Benefit
Transfer). The training institution will be provided a sum of Rs100 per day per artisan, to
arrange for his/her accommodation, trainer’s fee, training arena and certification etc. In
addition to this, an allowance of Rs300 per artisan per day would also be provided for the
arrangement of food for the artisans. 50% of the amount will be disbursed prior to the training
and 50% would be disbursed post the satisfactory completion of the training. Toolkits would
be provided with the Government e-Marketplace (GeM) platform. Toolkits worth a maximum
of Rs20000 would be provided to the artisans from the Industry and Enterprise Promotion
Council.

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 OBJECTIVE

 The main objective of the project is to benchmark One District One Product initiative
against similar projects which have been undertaken in the past throughout the world.

 A training cum financial assistance framework has been built keeping in mind the
unskilled and unemployed youth of Uttar Pradesh to provide them technical skills and
entrepreneurial abilities. The framework would go a long way in reducing the
unemployment level of the state and would provide a boost to the economy and welfare
of the state.

9
 Literature Review

Brief Research Report on Schemes similar to ODOP across the world

One Village, One Product (OVOP), Japan

The OVOP concept initially started in Japan, in 1979, by Morihiko Hiramatsu, as an idea for
regional development policy. The early perception of OVOP was to inspire communities to
selectively producing high-quality added-value goods.

The OVOP movement suggested one village to product one competitive and marketable
product with regards to their local resources to achieve sales revenue in the market, so that it
can create income for the residents in the villages and enhancing the local economy.

The OVOP approach also inspired local leadership and human resource development at the
municipal level by founding a number of schools for specific training goals. Thanks to the
OVOP program, the quantity of OVOP goods in Oita enlarged from 143 goods with total values
of $330 million in 1980 to 336 products with total values of $1300 million in 2001. Throughout
that time, the Oita income per capita doubled, to which the attainment of the OVOP strategy
appears to have contributed.

Nations Movement
China One Hamlet, One Product Movement (Shanghai)
One Town, One Product Movement (Shanghai)
One Region, One Vista Movement (Shanghai)
One Village, One Treasure Movement (Wuhan)
One Community, One Product Movement (Jiangsu Province)
One Product Movement (Jiangsu Province)
One Village, One Product Movement (Shaanxi Province)
One Village, One Product Movement (Jianxi Province)
Philippines One Barangay, One Product Movement
One Region, One Vision Movement
Malaysia Satu Kampung, Satu Produk Movement
Indonesia Back to Village (East Java)
Thailand One Tambon, One Product Movement
Mongolia Neg Baag, Neg Shildeg Buteegdekhuun
Laos Neuang Muang, Neuang Phalittaphan Movement
Cambodia One Village, One Product Movement

10
Thai OTOP (One Tambon One Product) movement

Tambon is the basic administrative unit in Thailand. Therefore, OTOP is more or less
equivalent to the Japanese OVOP although the “village” in OVOP is not necessarily confined
to the administrative unit and therefore can be geographically more flexible.

The Thai OTOP, like its Japanese predecessor, aims at encouraging the development of rural
economy through the use of local resources and with community members participation.
Initially, it was the government under Prime Minister Thaksin that officially launched the
OTOP Development Policy in 2001 as a measure to revitalize and diversify the rural economy
as a part of national economic restructuring. The central government played an active role in
providing funds, awards and trainings, conducting OTOP product championship for brand-
making, and in building web sites for OTOP groups.

The basic motivation of Thaksin was twofold: to get support from the farmers and to foster
coordination among government programmes. He visited many OTOP groups and encouraged
rural people just as Dr. Morihiko Hiramatsu had done in Oita (Japan). In addition, since there
are many government agencies and programmes aiming at cottage-industry promotion, close
intra-governmental coordination was needed for a successful mobilisation of local human and
material resources. As the knowledge about local conditions is only available at the local level,
the role of OTOP subcommittees which was formed under the auspices of the Ministry of
Interior in the process of de-centralisation has been crucial.

The following are the most important subcommittees placed under the OTOP National
Administrative Committee and their functions (The Office of Small and Medium Enterprises
Promotion, Ministry of Industry 2008).

1. Management subcommittee

・ Execute and coordinate plans and strategies agreed upon by the OTOP National
Administrative Committee

・ Coordinate with concerned authorities in relation to the operational planning and budgeting
of the set plans and strategies

11
・ Develop OTOP database and create information systems with parties involved in the OTOP
project

・ Monitoring and evaluation

2. Marketing subcommittee

・ Lay down marketing policies, action plans, and marketing directions

・ Identify distribution channels and consider appropriate locations for the setting up of
domestic and international distribution outlets

・ Protect intellectual property rights of the OTOP products

3. Production promotion subcommittee;

・ Foster the quality enhancement, the factor of production development, the improvement of
production process, the promotion of local content usage.

4. Product standard and quality development subcommittee

・ Foster, facilitate, and provide guidance to promote product standard and quality
enhancement by, among others, giving advices on production techniques and product
upgrading methods

5. Regional and provincial subcommittee

・ Formulate policies and plans essential for the strengthening of local communities

・ Promote networks among communities to improve producer’s competitiveness

・ Enhance producer’s knowledge, skill, and expertise

A basic comparative analysis between OTOP and OVOP can be seen as follows-

S No. Factor of Comparison OTOP model OVOP model

1 Primary Objective of OTOP was ideated with the OVOP was initiated
Implementation objective of bringing about keeping in mind the
economic development, improvement of social
boost to entrepreneurship life and community
and increase in revitalisation through
productivity and product self-reliance- connecting
quality product development

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2 Approach of Top- to- bottom approach
Implementation was applied. The Thai
Central government
implemented the scheme
without waiting for the
local initiatives to come up
3 Focus Market Focus was given mostly on
improved product portfolio
in global markets
4 Underlying Strategy A competitive strategy was
used, rating the product as
per export quality
standards
5 Unique Features Developing and
implementing a new
scheme every year for local
community development
6 Budget/Funding Since the initiative was
taken by the central
government, the
programme was fully
government funded, and
hence completely
dependent on the will of
government. So, when the
government fell in
Thailand, it gave a major
setback to the OTOP
initiative, causing
hampered growth in the
local entrepreneurship
development.
13
directly to community
development
A bottom-to-top
approach was adopted as
the initiative began from
within the local
communities itself, and
slowly gained the
support of the
government
Focus was given to
increased product sales
in both local and global
markets
Product differentiation
strategy was used to
capture demand elasticity
Local entrepreneurs play
a major part in the
scheme formulation for
their collective benefit
Since the initiative was
taken by the local
communities themselves,
it was more of a
community-dependent
project, supported fully
by local people, and
assisted by the
government. Hence the
success of the OVOP
model did not depend
much on the success or
failure of the government
of the country. This gave
the local entrepreneurs a
more advantageous
position and better
decision making
abilities.
 RESEARCH METHODOLOGY
A research cannot be conducted abruptly. It has been proceeded systematically in the
already planned direction with the help of a number of steps in sequence. To make the research
systemized certain methods has been adopted. The methods adopted for completing the project
are called Research Methodology.

PROBLEM STATEMENT
The statement of problem is an effort to identify the needed and eligible artisans or MSME
workers to have the self-employment opportunities to gain technical expertise and access to
finance. There is no streamline way to track the artisans as per their skill and knowledge.

OBJECTIVES OF THE STUDY

The main objective of the project is to benchmark One District One Product initiative
against similar projects which have been undertaken in the past throughout the world.

 A comparative analysis of the ideologies, the social and economic scenario and the
reasons behind launching such schemes has been done to understand the basic
similarities and differences in the techniques of implementation of overall
programmes, and their results.
 Focus has been given to successful schemes which have been, or are being currently
employed in Thailand’s One Tambon One Product (OTOP) initiative and OVOP (One
Village One Product) initiative in Japan.
 A training cum financial assistance framework has been built keeping in mind the
unskilled and unemployed youth of Uttar Pradesh to provide them technical skills and
entrepreneurial abilities. The framework would go a long way in reducing the
unemployment level of the state and would provide a boost to the economy and welfare
of the state.
 To have a separate mechanism to track the artisans and msme workers.

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RESEARCH DESIGN

Type of research:

The type of research that has been adopted by the researcher is descriptive research. It described
the study on Benchmarking ODOP against similar foreign policies and Policy framework
formation for ODOP.

.DATA COLLECTION PROCESS:

SECONDARY DATA

These are data’s which have already been available and 15nalysed by someone and pass
through the statistical process which might be published data or from various publications of
the central, state or local government, international bodies, reports ,magazine etc. It is often
undertaken after the researcher has gained some insight into the issue by collecting secondary
data.

IMPORTANCE OF DESCRIPTIVE DESIGN

 It gives researchers the ability to look at whatever they are studying in so many
various aspects and provide a bigger overview as opposed to other forms of research.
 A descriptive study is undertaken in order to ascertain and be able to describe the
characteristics of the variables of interest in a research.
 Descriptive design are also undertaken to understand the characteristics of
organizations that follow certain common practices.
 Data collection may be spread over a large number of people over a large geographic
area.
 The advantages of descriptive research include data collection and life experiences.
 It uses both quantitative and qualitative data in order to find the solution to whatever
is being studied.
 It is less time consuming
 It can identify further area of study.
 Educational research and experiences may contain many variables that cannot be
realistically
controlled.
 Educational research may require observations of life experiences

15
 RECOMMENDATIONS

The study of OTOP and OVOP implementation model highlighted various factors which limits
the different methodologies and approaches adapted by the countries in order for their model
to succeed. Some of the key findings during the analysis of both the models were very
fundamental, so much so that they changed their respective approach towards their policy
implementation.

Recommendations for ODOP Uttar Pradesh

Based on the success stories of OTOP and OVOP in altogether different political, social and
economical scenarios of their respective countries, following recommendations can be
provided for ODOP regarding implementation and growth strategies.

 Competitive Strategy- Since ODOP focuses on expanding the market opportunities of

local products to national \and international markets, competitive product-rating
strategy would prove beneficial for assuring quality standards. The products should be
divided into categories of quality (star-rating similar to OTOP), so that the artisans are
motivated to enhance the product quality for gaining access to international market. The
rating of products can be done as per industry standards by Common Facility Centres
(CFCs) after testing the products. Much like the OTOP logo, a quality assurance logo
can be used by ODOP for brand recognition.

 Product Championship Events- The government can organise product championship

events to promote local products. Local trade fairs, exhibitions etc. can be used as an
opportunity by the governments to encourage the artisans to showcase their skills and
promote their products. The winner of the competitions can be awarded various
opportunities to attend international exhibitions, fairs etc. to market their product. They
can also be awarded with learning opportunities like workshops for skill enhancement
and basic entrepreneurial skill development opportunities.

 Support from Private Sector- Since the private sector industries have a competitive
culture and better access to facilities and resources, the government can seek assistance

16
 from private industries for handholding of artisans of their respective fields and training
them to produce the products of necessary standards. They can also seek assistance to
provide employment opportunities to the artisans.

 “Shop for the nation” concept -Much like the OTOP Thailand initiative, where the
government provides tax concessions to individual customers who purchase OTOP
registered products, the Government of Uttar Pradesh can aim for increased awareness
and sales of ODOP registered products by providing tax concessions and other similar
benefits to ODOP customers.

 Exploring the retail outlet channel- ODOP products can be marketed and sold through
retail channels at Tier-1 and Tier-2 cities throughout the state. The retail stores are to
store and exhibit each of the 75 ODOP products and thus can be used as a channel to
spread awareness too. The ODOP branding strategy would also get a major boost by
such measures. After initial success, the retail outlet programme can be expanded to
include high footfall centres like the airports and railway stations.

 Focus on women empowerment- The state government should take special measures to
promote women entrepreneurs to come up and join the ODOP initiative. This can be
done through many ways like giving preference to women entrepreneurs in financial
aids and marketing opportunities, concession and reservation in training and skill-
development courses and workshops. The upliftment of women of the state can lead to
better growth of state economy as well.

 Web-based marketing- Once the ODOP products gain awareness and brand recall, the
government can plan to use ICT (Information and Communication Technology) to plan
and implement sales strategy for more popular ODOP products. Online stores for sale
of individual ODOP products can be targeted.

 Collaboration with the Department of Tourism- ODOP can also create revenue
generating opportunities by promoting tourism based on cultural significance of the
products. It has been observed in the past that the tourists which come to our country
are fascinated by our culture and way of life. Since ODOP basically promotes all the

17
traditional products of Uttar Pradesh, a tourism scheme can be developed, wherein the
tourists are taken through the journey of origin of each of these products throughout the
state, and bringing out the history and cultural importance of the products. More than
the product, it is generally the story behind the product which makes it more valuable.
This could act as a major crowd magnet. It can achieve two accomplishment with a
single strike- a great opportunity to market the product and spread awareness, as well
as a source of revenue for the state by tourism.

18
 Policy framework formation for ODOP

Training cum Financial Assistance Framework

Introduction- The following framework aims at providing self-employment opportunities to

unskilled artisans to gain technical expertise and access to finance. The basic layout consists
of a streamlined mechanism to initially train the applicants to give them technical knowledge
of how to successfully produce the respective ODOP product (of the district they belong to),
and based on the skills they gain, give them financing.

Basic Layout- Training (if necessary)

Registration Initial Assessment and

For Unskilled For Semi- For Skilled
skill GAP analysis skilled
Artisans Artisans
Artisans

Access to finance Assignment of credit Skill Assessment as

as per credit points points as per assessment per training received
evaluation

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Step 1- Registration
The interested applicants are required to register under the scheme either online or by coming
to the DI’s office of their respective districts. The applicant should fulfil the following criteria.

 The applicant should be a resident of Uttar Pradesh (to be verified through Aadhar Card
UAM)

 The applicant should be between 18 and 35 years of age

 The applicant should not be a beneficiary of any other welfare scheme under the
Government of India or Government of Uttar Pradesh (to be verified through UAM)

Post the registration, the applicants are to be provided with an identification-cum-credit card,
which would be used to track their progress and will store the award points allocated to them
as per their skill level and their performance after receiving the training and attending the
workshops and bridge courses.

The points thus received will form the basis of credit allocation process during the financing
stage. The artisans will be allocated a credit limit to help them start their own business by
enabling them to buy their own equipment and raw materials based on their credit points
aggregated from their training. After each training received, the points gained are to be updated
into the card on the basis of their performance on their assessment. As the credit points increase,
the credit limit allotted would keep increasing, thus ensuring that more and better trained
artisans get better opportunities. The credit points can also be used to prioritize the allocation
of credit for those who lie in the same spectrum of skill level, i.e. those who have higher points
would be preferred to those who have a relatively low score.

Step 2- Initial Skill Assessment and GAP analysis

The skill assessment of applicants in the field of ODOP product of the respective district is to
be done. This is done to determine his/her current level of technical skill, financial knowledge,
entrepreneurship orientation and the extent of training required to enable the applicant to
become an artisan/entrepreneur. Broadly, the applicants are to be divided into 3 categories-

I. Unskilled Artisan

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 II. Semi-skilled Artisan

III. Skilled artisan

The assessment is to be done by a collaboration with National Skill Development Corporations,

which has created Sector Skill Councils, to appoint Assessment Agencies for this job.

Following are the parameters:

(i) The assessment process shall be aligned to job role, sector, subsector, occupation, role
description, NSQF level, training, experience, in line with applicable NOS (National
Occupation Standards) and performance criteria, as described in relevant Operating
Standards (OS).

(ii) The QPs / NOS are approved by the Qualification Review Committee, NSDC.

(iii) The assessment parameters would be the performance criteria, knowledge &
understanding (Organizational content, technical domain, knowledge, core
skill/generic skill (say attributes), professional skills, maintain work area, tool and
machines (for same attributes), maintain health and safety & security at work place
(same attributes) and comply-with industry, regulation and organizational
requirements (same attributes)

(iv) Knowledge -for equipment, tools, material, Safety, Health & hygiene

• For limitation of use of tools & equipment of methods & procedure

• Understanding of functioning of equipment & tool; criteria to be used in selecting tools for
a given tasks of the process of measurement.

• Safety measure at workplace and at the time of emergency for self and peers.

• Awareness of Health & hygiene issues in the workplace

(v) Understanding

• Of functioning of equipment & tools

• Criteria to be used in selecting tools for given tasks

• The process of measurement

(vi) Skill

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  Precision - Dimensions with required measurement

 Computing - Handling measurements & calculations

 Manual - Handling of tools & equipment with ease.

 Finishing - Neat finishing

(vii) Abilities

 To take corrective steps

 To use correct work habits

 To take measurements

 To complete the job within stipulated time

 To adopt safe practices

(viii) Attitude

• towards the work regarding appreciation for accurate & precise work

• regarding appreciation for neatness

• towards co-workers and supervisors

An assessment of entrepreneurial skills and knowledge about the basics of handling business
will also be taken. Basic knowledge in domains like finance, marketing, operations ad strategy
would also be tested to gauge the ability of the applicant to successfully create his/her business
model and run his business smoothly. The layout of the assessment of these skills can be made
in accordance with the standards set by National Institute of Entrepreneurship and Small
Business Development, Noida.

However, maximum weightage would be given to the knowledge about the technical domain.
The aim of preliminary assessment is to categorize the applicants on their overall ability to run
the business.

On the basis of technical assessment, the applicants can be divided into

1. Technically unskilled artisans- Those who score less than 50% in the technical
assessment. They would be awarded credit points between 0 to 20 on the basis of their
performance.

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 2. Technically semi-skilled artisans- Those who score between 50% and 80% in the
assessment. They would be awarded between 20 to 50 points on the basis of their
performance.

3. Technically skilled artisans- Those who score above 80%. They would be awarded
50 to 80 points on the basis of their performance.

Parallelly, on the basis of entrepreneurial awareness, the artisans can be divided into

1. Level 1 applicants- Those who do not possess the basic information about business
models and how to run a business. They would be awarded 0 to 20 points as per the
assessment result.

2. Level 2 applicants- Those who know the basics of how to run a business, but do not
possess fine entrepreneurial skills and knowledge about government welfare schemes
for financial assistance (for example, Margin money schemes) and how to benefit from
them. They would be awarded 20 to 50 points as per their result.

3. Level 3 applicants – Those who possess the entrepreneurial skills and knowledge about
government entrepreneurial schemes and how to benefit from them, but lack detailed
finesse on domain specific knowledge of financial, marketing and operations field.
They would be awarded 50 to 100 point as per their performance.

Step 3- Training

As per the category allotted to the artisans, relevant training will be provided to enhance their
skill-sets. The training would be imparted with the help of Sector Skill Councils, which, in
turn, appoint third party associations to conduct the workshops and carry out independent
assessment procedures for impartial results.

The training process would be a comprehensive and incremental process. Parallel training of
technical and entrepreneurial knowledge will be provided to the artisans to ensure their overall
development. For different categories of applicants, the training modules can be selected as
follows-

1. Technically unskilled and Level 1 applicant- For such applicants, the

Entrepreneurship cum Skill Development (ESDP) program organised by the National
Institute of Entrepreneurship and Small Business Development, Noida would be

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 provided. This would help them gain both technical knowledge and business skills. The
duration of such training would be between 150 hours 250 hours in total (roughly for a
span of 2 to 4 months). At the end of the training, there would be a theoretical as well
as a practical assessment of all the skills gained. This is to be conducted by the institute
itself.

As per the assessment, the applicants would now be upgraded to technically semi-skilled level
and Level 2 applicant. Points would be awarded to them as per their performance and within
the previously mentioned point limit. This would increase their credit limit.

2. Technically semi-skilled/skilled and Level 1 applicant- Such applicants have to

undergo the Entrepreneurship Development Programme (EDP), organised by the
National Institute of Entrepreneurship and Small Business Development, Noida.
This training is a 15-day course to provide them the knowledge about various
entrepreneurial aspects of business. Post the workshop, there would be an assessment,
and points would be awarded as per their performance. This workshop would promote
the applicant to a Technically semi-skilled/skilled and a Level 2 applicant, so that
their allocated credit limit increases.

3. Technically semi-skilled and Level 1 applicant- Such applicants are to undergo

specialised training workshops which are organised by third party organisations under
the Sector Skill Councils. Post the training, both theoretical and practical assessment
would be conducted to promote the applicant to a Technically Skilled and Level 1
applicant. Additionally, they are to undergo the EDP programme mentioned above to
promote them to Technically Skilled and Level 2 applicants, and points would be
awarded accordingly to increase their permissible credit limit.

A training module of Leather Sector Skill Council for lasting process has been attached
separately for reference.

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 4. Technically skilled and Level 2 applicant – Such applicants have a sound technical
and entrepreneurial knowledge to run their own business. However, they can do so in a
more efficient manner and at a larger scale by gaining industry specific and market
knowledge, in addition to basic financial, marketing and operations knowledge. Thus,
they are to undergo Bridge Courses which would provide them access to such
knowledge. This can be done in association with reputed management colleges such as
Indian Institute of Management (IIM). Such courses can be designed in such a way that
one week can be allotted to each domain- finance, marketing, operations, industry
specific knowledge. Thus, this one month- course can provide them adequate
proficiency in these fields. Post the workshop course, the college can assess their
knowledge and provide them grades accordingly to award them points.

Step 5- Financing

Post the training and assessment part, the applicants are eligible to credit facility provided by
the government with the help of banks, on the basis of the points gained by the artisans. The
credit limits can be defined as follows-

S No. Points Scored (out of a Credit Limit Available

total of 200)
1 40-100 40% of equipment cost, or Rs.
50,000, whichever is lower
2 100- 160 70% of equipment cost, or Rs
1,00,000 whichever is lower
3 160-200 90% of equipment cost, or Rs.
1,40,000 whichever is lower

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 Limitations and Future Scope of Work

The framework which has been prepared for training and financial assistance is at conceptual
stage, and the detailed planning and execution of the framework would require extensive
research and collaboration with various government and private institutions. Owing to the time
constraints, the abovementioned processes have not been carried out and can be achieved
through the following steps-

 Collaboration with banks like Small Industries Development Bank of India (SIDBI),
aiming at developing entrepreneurship abilities
 Onboarding various institutions and third parties which impart technical and
entrepreneurial knowledge through workshops and diploma courses
 Creation of a feedback and assessment model for ensuring that the training and
assistance being provided are used resourcefully
 Other factors which can be a deciding factor in allotment of financial aid are to be
decided

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 References

 Adachi, Fumihiko. 2005. Marketing Perspectives of Community Enterprises in Oita

Prefecture: Evaluation of Marketing Activities Under OVOP Movement. Kinjo Gakuin
University.
 JICA 2001.Government Decentralization Reforms in Developing Countries; Institute
for International Cooperation, Japan International Cooperation Agency, March 2001
 JICA, 2006. Facing up to the Problem of Population Aging in Developing Countries-
New Perspectives for Assistance and Cooperation-, IFIC, JICA
 JICA.2008. Report of the Project Formulation Mission for the Project for Vitalisation
of Rural Areas through OVOP Movement in Timor-Leste”
 JICA- ODI 2008. Kurokawa Kiyoto, Tembo Fletcher and Velde, D.W. te “Donor
support to private sector development in sub-Saharan Africa” ODI Publications,
Working Paper290
 Kiyoto Kurokawa, 2010. Challenges for the OVOP movement in Sub-Saharan Africa -
Insights from Malawi, Japan and Thailand
 MURAYAMA Hiroshi, 2019. President, International OVOP Policy Association.
Policy of OVOP Worldwide, International One Commune One Product Forum held in
Ho Chi Minh, Vietnam

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