Question : Promotion of Khadi

(a) whether the Government proposes to turn khadi into an international brand, if so, the details thereof including the schemes being implemented presently to promote khadi;

(b) whether rural enterprises play an important role in country’s industrial development, if so, the details thereof;

(c) the number of khadi artisans in the country at present, State/UT-wise;

(d) the objectives and targets and the current implementation status of the khadi workshed scheme in the country; and

(e) the details of beneficiaries of the said scheme alongwith the other measures taken/proposed to be taken by the Government to promote khadi in the country, State/UT-wise?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI GIRIRAJ SINGH)

(a): Yes, Madam. Government in the Ministry of Micro, Small and Medium Enterprises through Khadi and Village Industries Commission(KVIC) has taken various initiatives to make Khadi an international brand. Details of the initiatives taken is placed at Annexure-I.

Government has been implementing a number of schemes for the holistic development and promotion of Khadi through KVIC, which include:
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.

(b): Micro, Small and Medium Enterprises (MSMEs) have been recognized as the engine of economic growth and plays a vital role in the overall industrial economy of the country. MSMEs is the second largest employer after agriculture and plays a crucial role in providing large employment opportunities. It also helps in industrialization of rural and backward areas, thereby reducing the regional imbalances, assuring more equitable distribution of national income and wealth.Employment under Khadi & Village Industries (KVI)during the last three years is as follows:

<pre>
Year Cumulative employment under KVI(in lakh persons)
2015-16 137.83
2016-17 136.40
2017-18 140.36
</pre>

(c): Number of Khadi Artisans in the country at present, State/UT-wise is placed at Annexure-II.


(d): KVIC launched Workshed Scheme for Khadi artisans belonging to BPL Group during the year 2008-09. The objective of the scheme is to provide better work ambience, more working and storing space for storing raw material, implements and accessories, yarn/cloth, etc. thereby improving efficiency and productivity of the artisans.The pattern of assistance under the scheme is as follows:

<pre>
COMPONENT AREA / UNIT AMOUNT OF ASSISTANCE
Construction of Individual Work-shed 20 Sq.Mtrs. Rs. 60,000/- or 75% of the cost of Work-shed (90% for NER), whichever is less
Construction of Group Work-shed
(Minimum 5 & Maximum 15 Artisans) 10 Sq. Mtrs.
per Artisan Rs. 40,000/- per Artisan or 75% of the cost of work-shed (90% for NER), whichever is less

</pre>

A target of 442 worksheds construction has been set during the year 2018-19. 287 worksheds have been constructed upto 30.11.2018.

(e): State/UT-wise details of number of artisans given assistance under Workshed Scheme during 2017-18 is placed at Annexure-III.

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