MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI GIRIRAJ SINGH)
(a): Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the following schemes/programmes all over the country through Khadi and Village Industries Commission (KVIC) in order to promote and modernize Khadi programme:
i) Khadi Grant:
1. Strengthening Infrastructure of existing Weak Khadi Institutions and Assistance for Marketing Infrastructure provides for renovation of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions
2. Workshed Scheme for Khadi Artisans for providing assistance for construction of worksheds.
ii) Market Promotion Development Assistance (MPDA) – A unified scheme by merging Market Development Assistance, Publicity, Marketing and Market Promotion. A new component for Infrastructure namely setting up of Marketing Complexes /Khadi Plazas
has been added to expand the marketing network of Khadi & VI products. Under the Modified MDA (MMDA) financial assistance at 30% of the Prime Cost, is distributed amongst Producing Institutions (40%), Selling Institutions (20%) and Artisans (40%).
iii) Khadi Reform and Development Programme (KRDP)aims to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinners and weavers, increased artisans’ welfare and to achieve synergy with village industries. Under KRDP, restructured amount of US$ 105 million has been negotiated with Asian Development Bank (ADB) and funds are being provided to the Government of India to be released to KVIC as ‘grants-in-aid’ under budgetary allocation through the Ministry of MSME. Khadi Reform Package envisages reform support in the following areas: (i) Artisan Earnings and Empowerment, (ii) Direct Reform Assistance to 400 Khadi Institutions & (iii) Implementation of a well-knit MIS.
iv) Strengthening infrastructure of weak Khadi institutions and assistance for marketing infrastructure: This scheme provides need-based support towards the Khadi sector for nursing the sick/problematic institutions for elevation from “D” to “C” category as well as those whose production, sales and employment have been declining. Under this scheme, financial assistance is provided to existing weak Khadi Institutions for strengthening of their infrastructure and for renovation of khadi sales outlets.
In addition to the above, following new initiatives have also been taken by the Government post-2014, which is placed at Annexure-I.
As a result of these efforts there has been a tremendous increase in performance of KVI sector as may be seen in the comparative Performance of Khadi & Village Industries, which is placed at Annexure-II.
In order to promote Village Industries sector, the following schemes are being implemented:
(i) Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi & Village Industries Board (KVIB) and District Industries Centre (DIC). General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector. State/UT-wise details of number of micro units setup and Margin Money disbursed during 2015-16 to 2017-18 (Feb., 2018) is placed at Annexure-III.
(ii) A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE) was launched on 18.3.2015 to promote Innovation and Rural Entrepreneurship through rural Livelihood Business Incubator (LBI). Details of the number of LBI centres sanctioned till date since inception is placed at Annexure-IV.
(iii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is being implemented from 2005-06 for making Khadi, Village Industries & Coir Traditional Industries more productive and competitive by organizing these Industries and artisans into clusters. The Scheme envisages providing need-based assistance for replacement of production equipment, setting up of common facility centres (CFC), product development, quality improvement, improved marketing, training and capacity building etc. As on date (17.2.2018), 72 DPRs have been approved since inception with a total financial assistance involving Rs.139.58 crore providing employment to 59900 artisans.
(b): After constitution of Khadi and Village Industries Commission, the concurrent Act was passed by the State Assemblies constituting State Khadi and Village Industries Boards in the States for implementation of Khadi and Village Industries Programme in collaboration with KVI Commission. KVIC assigns targets for plan schemes for the State KVI Boards and releases plan fund for implementation of the programme in accordance with the assigned targets.
(c): Yes, Madam. Government has assessed the performance of State KVI Boards and depending on the performance, the best Boards have been selected for National Awards. Top best performing KVI Boards are Uttar Pradesh State KVI Board, Karnataka State KVI Board, West Bengal State KVI Board, Tamil Nadu State KVI Board and Madhya Pradesh State KVI Board.
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