Question : RENOVATION OF KHADI BHAWANS

(a) whether the renovation work of the Khadi Gramodhyog Buildings/outlets at various locations including New Delhi has been completed;

(b) if so, the details thereof and if not, the reasons therefor including the period since when the renovation work has been going on along with the expected time by which the work would be completed and the estimated amount likely to be spent for the purpose;

(c) the financial loss suffered due to the delay in renovation, location-wise including New Delhi;

(d) whether the Government had identified some Khadi Bhawans/outlets in the country as loss making units and if so, the details thereof along with the steps contemplated/taken in this regard; and

(e) whether there is any proposal to close down the Khadi Gramshilp in Delhi and if so, the details thereof and the reasons therefor along with the total number of employees likely to be affected as a result thereof?

MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI K.H. MUNIYAPPA)

(a) to (e) A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO.303 FOR ANSWER ON 12.02.2014

(a)&(b) There are at present around 7050 khadi and village industries (KVI) outlets in the Country including 09 Khadi Gramodyog Bhawans (KGBs) operated by Khadi and Village Industries Commission (KVIC). Out of these KVIC-KGBs, the renovation work of the one at Ernakulam (Kerala) has been completed at a cost of Rs.31 lakh and the Bhawan at New Delhi, renovated at a cost of Rs.11.56 crore, is in the process of being handed over.

(c) The sales activities of KGB New Delhi were continued during the renovation period at alternative location, and those of KGB Ernakulam at existing location. Although, it is reasonable to expect that renovation work would have an impact on the performance of these KGBs, however, it is difficult to make an assessment of exact loss suffered by the KGBs specifically as a result of the renovation works.

(d) KVIC has identified KGBs situated at Kolkata, Patna & Agartala as loss-making units. KVIC has taken various steps for improved marketing of KVI products. These include: initiating setting up of a Marketing Organization under PPP for selected KVIC outlets including these loss making ones, improving marketability of Khadi products by authenticating the genuineness of khadi by way of launch of khadi Mark, providing various supports to khadi institutions under Plan Schemes implemented by KVIC, organizing exhibitions at District, State, Zonal and National level and participating in international events.

(e) There is no proposal to close down the outlet ‘Gramshilpa’ in Delhi.