Question : Promotion of Cottage Industries

(a) whether the entrepreneurs related to cottage industries are being trained in the country and if so, the details thereof, State-wise including Madhya Pradesh and Jammu & Kashmir;

(b) whether any action has been taken to modernize the cottage industry in the country and if so, the details thereof, State-wise, including Madhya Pradesh and Jammu & Kashmir;

(c) the details of products including food products processed by the cottage industries in the country during each of the last three years and the current year, State/ UT-wise;

(d) whether cottage industries in villages are gradually disappearing due to liberalization and if so, the details thereof and the criteria set for defining and reckoning cottage industries in villages; and

(e) the steps taken by the Government to provide market to cottage industries and to save them from liberal market forces along with the outcome thereof?

Answer given by the minister

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

(a): Khadi & Village Industries Commission through its 40 Training Centres, 18 Departmental and 22 Non-Departmental Training Centers provides training in different parts of the country including Madhya Pradesh and Jammu & Kashmir. Some of the Training modules are: Khadi technology course, spinning & weaving, handmade paper manufacturing, pottery technology, carpentry & wood, tailoring & embroidery, silk reeling & spinning, garment making, Bamboo Article making, Motor Winding course, Screen Printing course, Beekeeping course, Palm Gur and palm leaf fancy articles, Charka Mechanic course. The details of trainees trained through these training centres during the year 2017-18 is placed at Annexure-I.

(b): Ministry of MSME is implementing the following schemes through Khadi and Village Industries Commission (KVIC) and Coir Board for promotion and to modernize Cottage Industries in the country:

I. Schemes being implemented by the Ministry:

i) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) from 2005-06 for making Traditional Industries more productive and competitive by organizing the Traditional 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.


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), Technology Business Incubator (TBI) and Fund of Funds for start-up creation.

II. Schemes being implemented by Khadi and Village Industries Commission (KVIC):

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-wise details of Margin Money allocated and utilized, job opportunities created and number of units set up under PMEGP Scheme during the last three years and current year is placed at Annexure-II.

ii) Market Promotion Development Assistance (MPDA) – A unified scheme by merging Market Development Assistance, Publicity, Marketing and Market Promotion. A new component of 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) Interest Subsidy Eligibility Certificate (ISEC) Scheme provides credit at concessional rate of interest through Banks as per the requirement of the Khadi institutions. The institutions are required to pay interest of only 4%, any interest charged by banks over 4% will be paid by the Government of India through KVIC to the banks.

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 elevated from “D” to “C” category as well as those whose production, sales and employment have been declining while they have potential to attain normalcy and to support creation of marketing infrastructure in other identified outlets. Under this scheme, financial assistance is provided to existing weak Khadi institutions for strengthening of their infrastructure and for renovation of selected khadi sales outlets.

v) 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.

In addition to the above, KVIC also regularly conducts Pottery skill up-gradation training programme to the rural pottery artisans of weaker category in the country by providing advance pottery technologies and replaced the old pottery equipments i.e. traditional stone pottery wheels of artisans under promotional activities of KVIC. During the current year, KVIC is providing assistance to 07 clusters for development of pottery at Varanasi, Nagpur, Madurai, Bhubaneswar, Jammu & Kashmir, Guwahati and New Delhi.

III. Schemes being implemented by Coir Board:

Coir Board is implementing the Coir VikasYojana to cater to the multiple developmental needs of coir industry. Interventions under the following components of the Scheme are taken up to promote the Coir industry:
1. Skill Upgradation and Mahila Coir Yojana (MCY)
2. Coir Industry Technology Upgradation Scheme (CITUS)
3. Export Market Promotion (EMP)
4. Domestic Market Promotion (DMP)
5. Trade and Industry Related Functional Support Services (TIRFSS)
6. Welfare Measures (Group Personal Accident Insurance Scheme)
7. Plan Science & Technology

State/UT-wise subsidy released and employment generated underCoir Board schemesduring the last three years and current year is placed at Annexure-III.

(c): KVIC does not maintain the details of the products including food products processed by the cottage industries as the cottage industry is largely in the unorganized sector. However, based on the loans taken under PMEGP by various village industry units, some of the products are as under:

Agro based Food Processing Industries (ABFPI)- Food products like papad, pickle, bread, biscuits, garammasala, jam &jellies, palm candy, palm gur, palm sugar, khandsari, edible oils, 15 different types of spices, bakery products, whole wheat biscuits, bread, Pav,etc

Forest Based Industry (FBI): Herbal products, Honey, Bee-wax, medicinal oils, balm, etc.

Hand Made Paper &Fibre Industry (HMPFI): handmade paper, boards, paper envelop, files, file covers, writing pads, visiting cards and fibre base products like Rassi (handmade paper mixed with fiber), handicrafts, decorative items, etc.

Mineral Based Industry (MBI) includespottery, plaster of Paris products, stone crushing, idols making, chalks, terracotta products, etc.

Polymer and Chemical Based Industry (PCBI) includesLeather products like footwear, belts, purses, jackets, Non-edible Oil, Soap Industry, detergent powder, candle, Cottage Match and Agarbatti, Plastic items etc.

Rural Engineering and Bio-Technology Industry (REBTI): Furniture, Amirah, tools equipment etc.


(d): No Madam. Sales, production and job opportunities in Khadi and Village Industries sector during the last three years is as follows, which shows an increasing trend of Khadi &Village Industries Sector:
(Rs. in crore and Employment in lakh persons)

<pre>
Sl. No. Particulars 2015-16 2016-17 2017-18
I. PRODUCTION
A Khadi (incl.Polyvastra) 1158.44 1520.83 1626.66

B Village Industries 33331.78 41110.26 46454.75
Total-I 34490.22 42631.09 48081.41
II.
SALES
A
Khadi (incl.Polyvastra) 1663.98 2146.60 2510.21

B Village Industries 40230.58 49991.61 56672.22
Total-II 41894.56 52138.21 59182.43
III. EMPLOYMENT
A Khadi (incl.Polyvastra) 11.57 4.56* 4.65*

B Village Industries 126.26 131.84 135.71
Total-III 137.83 136.40 140.36
</pre>
*Aadhaar seeded

(e): The steps taken by the Government to provide market facilities to cottage industries through KVIC is placed at Annexure-IV.

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