(a): whether Khadi and Village Industries being symbol of our National Movement and priority of `Mahatma Gandhi` is gradually sinking these days:
(b): if so, the details thereof;
(c): whether the Government has decided to enhance the ratio of allocations to uplift sinking Khadi and Village Industries; and
(d): if so, the steps taken or proposed to be taken to revive the Khadi and Village Industries across the country?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)
(a): No, Sir.
(b): Does not arise.
(c): The khadi and village industries sector has continued to
receive priority as can be judged from that fact that budgetary
allocation has increased from Rs. 340.55 crore (actual) in 2002-03
to Rs. 711 crore in 2007-08. Moreover, the total value of
production and employment generated in these sectors have
increased by 44.51 per cent and 24.56 per cent during 2002-03 to
2005-06.
(d): As part of the Government`s National Common Minimum Programme
to revamp the Khadi and Village Industries Commission (KVIC), the
Khadi and Village Industries Commission Act, 1956 has been amended
and the Commission has been re-constituted. To strengthen the
khadi and village industries (KVI) and make them competitive in
the global economy, Government (in the Ministry of Agro and Rural
Industries) has been implementing schemes like Interest Subsidy
Eligibility Certificate
Scheme (ISEC) providing subsidized rates of interest on bank
loans, Product Development, Design
Intervention and Packaging (PRODIP) Scheme for improving designs
and packaging of KVI products, and Rural Employment Generation
Programme (REGP) through KVIC, for setting up village industries
by providing subsidy in the form of margin money. Assistance is
also provided to KVI units to participate in exhibitions at the
national, sub-national levels to assist marketing of KVI products.
These facilities are available to all eligible cottage and rural
industries. Further, the Government has launched the Scheme of
Fund for Regeneration of Traditional Industries (SFURTI) in 29
khadi, 50 village and 25 coir industry clusters for five years
beginning 2005-06. SFURTI envisages assistance for setting up of
common facility centres, quality improvement, training and
capacity building, development of new products, improved
packaging, new design, market promotion, etc.
Further, the Expert Committee constituted to suggest
measures for revamping of KVIC and programmes/schemes had, inter
alia, recommended strengthening of the khadi and village
industries by restructuring of some of the on-going schemes. In
pursuance of the accepted recommendations, KVIC has prepared
proposals in this regard with aim of creating more employment
opportunities in the KVI sector.