MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) to (e): A statement is placed on the table of the Sabha.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO.199
FOR ANSWER ON 23.11.2010.
The Ministry of Micro, Small and Medium Enterprises has been implementing the cluster-based scheme named
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) since 2005-06 through the Khadi and
Village Industries Commission (KVIC) and Coir Board under which 29 khadi, 50 village industries and 26
coir clusters mostly having more than 500 traditional artisans per cluster, have been targeted by
providing them with improved equipment, common facilities centres, business development services,
training, capacity building, design and marketing support and arranging exposure visits etc., to
make these activities competitive and sustainable.
Apart from SFURTI, the Government (in the Ministry of Micro, Small and Medium Enterprises) is also
implementing a credit-linked subsidy scheme called Prime Minister’s Employment Generation Programme
(PMEGP) from 2008-09 for generating self-employment through establishment of micro enterprises by
organizing traditional artisans and unemployed youth, and thus preventing their migration and
increasing their earning capacity. The Scheme is being implemented through the Khadi and Village
Industries Commission (KVIC), as nodal agency at the national level. At the State/Union Territories
level, the scheme is implemented through field offices of KVIC, State/Union Territory Khadi and
Village Industries Boards (KVIBs) and District Industries Centres (DICs) with involvement of Banks.
Under this Programme, beneficiaries can establish micro enterprises in non-farm sector, including
traditional village industries, by availing of margin money assistance through the implementing
agencies and loans from Banks, etc., for projects costing up to Rs.25 lakh each in the manufacturing
sector and upto Rs.10 lakh each in the service sector.
The State-wise details of clusters taken up for development under SFURTI are shown in Annex. I.
About 1.78 lakh artisans have been covered under SFURTI clusters so far. The State/UT-wise
number of persons estimated to have benefited from employment, including self employment
opportunities, generated under the erstwhile Rural Employment Generation Programme (REGP)
and the present Prime Minister’s Employment Generation Programme (PMEGP) are given at Annex. II.
The State-wise details of margin money assistance provided under REGP and PMEGP during last three
years and current year are also given at Annex. III.
Among other steps taken by the Government to strengthen traditional industries like khadi, village
industries and coir, the Ministry of Micro, Small and Medium Enterprises has been implementing the
Scheme of ‘Strengthening Infrastructure of existing weak khadi institutions and Assistance for Marketing
Infrastructure’ with a target of strengthening 100 weak khadi institutions and a Khadi Reform and Development
Programme under which revitalization of khadi activities is targeted in 300 identified khadi institutions all
across the country, on a pilot basis.
Also for increasing earnings and improving working conditions of coir spinners and weavers, the Ministry
in March 2008 has launched a scheme, namely, ‘Rejuvenation, Modernization and Technological Upgradation
of Coir Industry’ by providing assistance to groups of spinners and tiny / household units in the form
of replacement of ratts and looms and providing worksheds at a total outlay of Rs 243 crore, including
government grant of Rs. 99 crore. An employment of 36,800 persons is targeted for creation under this
scheme during the XI Five Year Plan.
