Sanitary pads are not as difficult to get your hands on in Delhi as one might think, but if you go out in the countryside you will find it a struggle. I had already heard of Arunachlam's project, but seeing his TED talk really makes you understand what a great man is needed to come up with an idea like this.
While I back his mission to make sanitary options available for Indian women across the sub-continent, I also think it's important to consider the environmental implications of the possibility that everyone can produce their own pads. I use a menstrual cup myself (Lady Cup and Diva Cup are the major brands) and although I was kind of critical in the beginning, I have really come to love the simplicity of it. Imagine this - you will never be out of pads or tampons again. You just empty, wash and move on.
For the women who haven't gotten used to the throw-away culture this product is perfect. It would be perfect if evolution of pad usage skipped the tampon stage in the poverty ridden areas of the globe and went straight to long-lasting solutions like menstrual cups. The only problem for its spread in India, is that menstrual cups are an expensive investment. You buy it once and it lasts you years, but rural women just can't take chances with their money like that.