(a): whether there is any proposal to provide Export Promotion Council status to the Khadi and Village Industry Commission (KVIC);
(b): if so, the details and objectives thereof;
(c): the steps taken/proposed to be taken and assistance to be provided to strengthen the KVIC; and
(d): the extent to which it would be beneficial to the sector?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)
(a): Government has allocated Rs. 592.93 crore under the Plan
head to the Khadi and Village Industries Commission (KVIC) for
2006-07 for implementation of various schemes/programmes for
development of khadi and village industries (KVI) sector,
including Rs. 372.63 crore for implementation of Rural Employment
Generation Programme (REGP). In addition, Rs. 25.97 crore have
also been allocated for development of KVI and Coir clusters under
the Scheme of Fund for Regeneration of Traditional Industries
(SFURTI) during 2006-07.
(b): Out of the allocation of Rs. 592.93 crore for development of
KVI sector, Rs. 60.60 crore have been earmarked for the North-
Eastern Region (NER), including Rs. 38.15 crore for implementation
of REGP. Similarly, out of the allocation of Rs. 25.97 crore
allocated to KVIC under SFURTI, Rs. 2.60 crore have been earmarked
for NER.
(c): KVIC is expanding its activities in the NER by promoting KVI
activities through creating awareness, imparting training to
improve the skill and entrepreneurship, creation of self
employment opportunities by promoting Rural Employment Generation
Programme (REGP) projects and providing marketing support, mainly
by organising exhibitions. It earmarks not less than 10 per cent
of its plan budget for the exclusive benefit of the region. The
restriction to register new khadi institutions has been relaxed to
encourage registration of new institutions. Financial assistance
under khadi also includes funds for augmenting raw material banks.
In order to facilitate research and development under KVI
activities, technical interface units have been promoted in NER.
Projects under Product Development, Design Intervention and
Packaging (PRODIP) programme have been sanctioned.
Similarly, for skill improvement, training infrastructure has
been created with close coordination of Non-Government
Organisations and the Khadi and Village Industries Boards of the
States in NER.
(d): Khadi worth Rs. 6.82 crore was produced during 2005-06 in
the NE Region creating employment opportunities for 12,903 persons
and village industry products worth Rs. 565.17 crore were produced
creating employment opportunities for 4.49 lakh persons. During
2006-07, so far, khadi worth Rs. 5.40 crore as against the target
of Rs. 6.50 crore is expected to have been produced in the NE
Region creating employment opportunities for 10,600 as against the
target of 13,000 persons and 2032 village industries units have
been assisted with utilisation of Rs. 23.48 crore as margin money
creating employment opportunities for 37,463 persons as against
the target for assisting 3073 units with margin money allocation
of Rs. 34.12 crore.