TARAhaat at a Glance
Rakesh Khanna

Information technology (IT) has brought in enormous benefits in operational efficiency in all major spheres of human activity and has created immense wealth for those who know how to apply it. But ironically, the very factors — its immense growth and acceptance across the globe — that have made some phenomenally rich, are also driving the poor to the periphery, creating barriers in societies and the day is not very far off when it could be the reason for social unrest and tension. All these may sound paradoxical, but it is true that the rift between those who have access to computers and those who can’t afford them is growing.

The Digital Divide as this widening gap is known, is not confined to the Third World. Ironically, it exists in the poor communities of the developed world, from where information technology has originated and blossomed, (as much as in poor countries), affecting nearly three billion people around the world, who live on less than $2 a day. Information technology is beyond the reach of these people. Telephones are not readily available in their vicinity and the cost of a Personal Computer is prohibitive for their income.

But, all hope is not lost. The power of the mind has to be unveiled. Imaginative solutions using information technology have to be crafted to turn this "divide" into a dividend and raise the living standards of poor with sustainable livelihoods. Bridging the digital divide requires telecommunication links, access to computers and software, and relevant content and training. It also needs a massive injection of resources. A number of initiatives all over the world have been taken to narrow the "divide", but very few are making any significant impact on the disadvantaged because of their relatively small scale of operation and the lack of a sustainable business model.

Development Alternatives (DA) has been working in rural India for almost two decades and the awareness of information technology and the Internet has been rising exponentially in the
 areas being served by DA and TARA (Technology Action for Rural Advancement). The use of ICT (information, communication and technology) to accelerate the empowerment, transparency and upliftment of quasi-urban and rural India is, therefore, a natural progression of DA and TARA’s initiatives. The DA group in September 2000 set TARAhaat rolling in two areas—Bundelkhand (MP and UP) and Bathinda (Punjab).

TARAhaat is a unique initiative designed especially for rural communities. It uses the power of IT to bring knowledge, services and products to rural masses. TARAhaat.com aims to have content comprising of information on social services, development and environment, provided by the promoter organisations and other partners. The portal will further enable email, (e–commerce), edutainment and access to (e-governance) facilities. TARAhaat has overcome its target audience’s hesitation to use this new technology to enhance their quality of life. For an effective outreach, TARAhaat is focussing initially on the services or products that its customers demand today to draw them in and get them using the network. During field-testing, it was observed that education is a major need with the younger generation, especially computer education. Hence the single largest service to be provided by TARAhaat in the early days is education through specially designed courses aimed at imparting skills that could sow the seeds for remunerative employment.

Access to TARAhaat’s services is provided by franchised cyber kiosks (TARAkendras) operated by local village entrepreneurs. Satellite communications, broadband wireless and local power generation will be used where there is no electricity or phone. Use of local languages with time-sharing of facilities smoothens the problems of connecting the illiterate or the poor to the web. Eventually, TARAhaat plans to be the enabler bringing the village manufacturer in contact with buyers and designers the world over.

Access to the Internet in itself does not guarantee effective use and learning. Poor communities are often ill prepared for technology and the equipment can languish in rooms where few people have access to it. Awareness about computers and the Internet being negligible in the Bundelkhand region, the DA group initially subsidised computers and other affiliated equipment to the franchisees to demonstrate the benefits and increase awareness. In Bathinda, where both the economic situation and awareness is better, the equipment has been procured by the franchisees with loans from banks from the onset. All franchisees are provided the basic training and mentoring by TARAhaat from time to time. A total of 12 TARAkendras are operational as of today, with four more in the pipeline.

TARAhaat will primarily target the under-served markets in India. This vast market, with some 900 million people spread over nearly 600,000 village communities, mandi towns and small cities constitute more than 60 per cent of the nation’s disposable income. The rural middle-class (more than 400 million) hardly has the opportunity to realise its inherent potential. TARAhaat aims to be the most effective gateway allowing the latent potential to blossom.

For TARAhaat to succeed, it has to combine the corporate aspirations of profit with social responsibilities. The focus during the initial phases will be partnering with organisations that share the same vision and are keen to utilise the potential in delivering products and services to the under-served markets. The pilots are demonstrating such possibilities.

TARAkendra owners are small time entrepreneurs with limited self-sustaining power. They need quick revenue. Offline products and services have to be created to keep them going, till the Internet delivered services and products reach the critical mass. The real success of TARAhaat depends on the successes of the TARAkendras spread across the country.

TARAhaat at a Glance Year 1 Year 2 Year 3 Year 4 Year 5  Year 6
Apr. 2002 -
Mar. 2003 
Apr. 2003 -
Mar. 2004 
Apr. 2004 -
Mar. 2005 
Apr. 2005 -
Mar. 2006 
Apr. 2006 -
Mar. 2007 
Apr. 2007 -
Mar. 2008 
1. TARAkendras
Total No. of TARAkendras
328 4,165 13,525 22,725 34,226 47,350
2. Users
Total No. of Users
Av. No. of Users/Kendra
161,820
493
2,811,480
675
10,266,500
759
20,022,000
881
34,153,100
998
53,569,000
1,131
3. Computers
Total No. of Computers
Av. No. of Computers / Kendra
Av. No. of Users / Kendra
Av. No. of Regular Members / Kendra
1,055
3.2
153
38
15,463
3.7
182
55
54,247
4.0
189
66
101,654
4.5
197
79
159,212
4.7
215
97
221,204
4.7
242
121
4. Av. No. of Students / Computer 11 12 12 13 13 13

The DA Group’s TARAhaat initiative has created a unique platform to overcome the traditional contradiction between social and environmental goals and the imperatives of business – a prerequisite for scaling up sustainable development interventions. TARAhaat combines the need for addressing social and development issues with the best business practices, an essential ingredient for multiplication of new innovations. TARAhaat sees itself evolving into a strong, economically viable and sustainable institution addressing the livelihood needs of the marginalised and deprived through empowerment.

TARAhaat envisages five kinds of habitats being serviced by its franchises, as given in the table below.

Habitats based on total population Type of kendras Av. no. of Computers / Kendra
Cities below 500,000 A 5-10
Block towns (15,000 - 50, 000) B 4-7
Large villages (5,000 - 15, 000) C 3-6
Medium villages (2, 000 - 5, 000) D 3-4
Small village clusters (0 - 2,000) E 2-3

Six years down the line, TARAhaat.com plans to have around 48,000 fully functional franchised Internet and computer enabled business centres covering different kinds of habitats. The envisaged growth of these kendras, run by local entrepreneurs is depicted in the table at the top.


TARAhaat is expected to break even within three years. Its current revenues and investments in new facilities will be balanced to maintain a combination of reasonable net profits and high network growth rate in the future.


By the sixth year, TARAhaat will be a profitable and vibrant organisation. However the franchises at the smallest village clusters may always need initial support in the form of seed capital. Such support will ensure that they also reach independent financial viability rather quickly.


The road ahead is tough and challenging. To foster development, social justice and other such critical issues in a manner that the enterprise is commercially viable is not an easy task. TARAhaat aims to be that unique institution capable of walking this tight rope. As C K Prahalad, Professor at the Michigan University Business School says, "This Digital Divide is not about lack of opportunity, it is about lack of imagination." q
Village Revival 

The revival of the village is possible only when it is no more exploited. Industriali-zation on a mass scale will necessarily lead to passive or active exploitation of the villagers as the problems of competition and marketing come in. Therefore, we have to concentrate on the village being self-contained, manufacturing mainly for use. Provided this character of the village industry is maintained, there would be no objection to village using even the modern machines and tools that they can make and can afford to use. Only they should not be used as a means of exploitation of others.

M K GANDHI

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