The Vaijnath Leather Complex (VlC) established in 1962 in Bardoli, Gujarat, was hailed as a model of governmeritj intervention to revive the village leather industry. "Its founding fathers had a vision of producing gold from garbage by integrated development of the rural leather industry," say Usufbhai Patel, executive manager of the VLC.

It started as a flaying centre and aimed for optimum carcass utilisation. By 1975, it became a full-fledged complex with a tannery and a footwear making unit. Today, the VLC has barely-20 of the original team of 100. Machines lie unused or under-utilised. Net profit has nosedivedi from Rs 37,000 in 1982-83 to Rs 2,494 in 1994-95 on a turnover that remained constant at about Rs 35 lakh.

How did this happen? The answer lies in the VLC's bureaucratic rigmarole. Jayanti Lal, a VLC ex-worker, says, "Earlier, the VLC functioned like a voluntary organisation. We all worked as a family. Later, it became a governmental organisation with a boss-subordinate relationship."

VLC officials lament the paucity of funds. After the 1980 annual review, the KVIB cut off funds as it found the complex self-sufficient. "That was a mistake. We need money for further mechanisation and to meet running expenses," says Chunnibhai Patel, VlC's president.