MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) & (b): The development and promotion of small and cottage industries is primarily
the responsibility of States / Union Territories (UTs). The Government (in the Ministry of
Micro, Small and Medium Enterprises), however supplements the efforts of the States / Union
Territories for development and promotion of micro, small and medium enterprises, including
khadi, village and cottage industries, through various schemes / programmes relating to
credit, infrastructural development, technology upgradation, marketing, entrepreneurial
development, etc, throughout the country, including the States/Union Territories having
low per capita income and high rates of poverty. The value of production of khadi in the
country, including Gujarat has been showing an upward trend during the last 4 years. The
estimated value of products of village industries has also shown consistently upward
trend.
The figures of value of production of khadi and village industries in Gujarat
as well as the entire country during the last 4 years are given below:
YEAR PRODUCTION (Value Rs. crore) Khadi Village Industries Gujarat Entire Country Gujarat Entire Country including including Gujarat Gujarat
2005-06 27.82 468.30 527.60 11915.54
2006-07 29.08 491.52 565.66 13527.19
2007-08 33.09 543.39 625.69 16134.32
2008-09 34.52 585..25 649.71 16753.62
(c) & (d): For regeneration of traditional industries, a scheme, namely, the Scheme of
Fund for Regeneration of Traditional Industries (SFURTI) is being implemented in the khadi,
village and coir sector, which include cottage industries as well. Over 100 clusters in
these sectors have been taken up for development under SFURTI. Out of these 4 clusters have
been taken up in Gujarat, and the details thereof are as under:
Place Sector Name of Cluster
Rajkot Khadi Vadhawan Polyster Cluster
Bhavnagar Coir Mahuva Coir Cluster
Valsad Village Industries Neera Cluster
Ahmedabad Village Industries Gujarat Tribal Jewelry Cluster
Release of funds under SFURTI is cluster specific and not made to the States directly. The
funds are released to the Nodal Agencies, i.e., the Khadi and Village Industries Commission
(KVIC) and Coir Board, which are responsible for holding and disbursing the funds on receipt
of utilization certificate and depending on actual physical progress. Funds released to the
Nodal Agencies during the last three years and funds earmarked for current year under SFURTI
are as under:
(Rs. crore) KVIC Coir Board Total
2006-07 19.03 6.50 25.53
2007-08 9.04 6.27 15.31
2008-09 13.45 3.50 16.95
2009-10# - - 17.00
#Funds allocated in BE 2009-10 under SFURTI.
(e): Prime Minister’s Employment Generation Programme (PMEGP) is one of the schemes, under
which entrepreneurs, can establish ‘micro enterprises’, as defined in the “Micro, Small and
Medium Enterprises Development Act, 2006†in the rural as well as urban areas of the country,
including Gujarat, i.e., the enterprises engaged in
(i) the manufacture or production of goods pertaining to any industry specified in the
first schedule to the Industries (Development and Regulation) Act, 1951, where the investment
in plant and machinery does not exceed twenty five lakh rupees;
(ii) those providing or rendering services, where the investment in equipment does not
exceed ten lakh rupees, by availing of margin money assistance from Khadi & Village Industries
Commission (KVIC) and loans from any public sector scheduled commercial bank.
PMEGP is implemented through KVIC as the single nodal agency at the national level. At the
State/Union Territories level, the scheme is being implemented through field offices of KVIC,
State/Union Territory Khadi and Village Industries Boards and District Industries Centres
(DICs), including Gujarat, with involvement of banks. The permissible margin money subsidy
assistance provided under PMEGP is as under:
Categories Beneficiary’s Contribution Rate of Subsidy
of beneficiaries (of project cost) (of project cost)
under PMEGP Urban Rural
Area (location of project/unit)
General Category 10% 15% 25%
Special Category 05% 25% 35%
(including SC / ST
/ OBC /Minorities/Women,
Ex-servicemen,
Physically handicapped,
NER, Hill and Border
areas etc.)
