Question : EVALUATION OF SCHEMES FOR PROMOTION OF AGRO AND RURAL INDUSTRIES



(a): whether the Government has evaluated the implementation of various schemes including Prime Minister Rozgar Yojana (PMRY) for promotion of agro and rural industries;

(b): if so, the details and the findings thereof, scheme-wise and State/Union Territory-wise;

(c): the action taken to remove the shortcomings;

(d): whether the condition of agro and rural industries has deteriorated and some of these are on the verge of closure; and

(e): if so, the details thereof and the steps taken in this regard?

Answer given by the minister


MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)

(a) to (e): A statement is placed on the table of the Sabha.

THE STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 212 FOR ANSWER ON 13.03.2007.

(a) and (b): Yes, Sir. Studies have been undertaken from time to time by the Government in the Ministry of Agro and Rural Industries, to evaluate the status of implementation of various programmes for promotion of agro and rural industries. The details of the evaluation are as under.

The Programme Evaluation Organization (PEO) of the Planning Commission had conducted an evaluation study in respect of Khadi and Village Industries Programmes and submitted its report in 2001. The main findings of the above studies are at Annex I

In the case of PMRY, the Government has already got three rounds of evaluation done by the Institute of Applied Manpower Research (IAMR) New Delhi, the details of which are as under.

(i) The first round of the evaluation was conducted in1996-97 pertaining to the programme years 1993-94 and 1994-95. 3544 bank branches, 15,331 beneficiaries in 48 districts of 21 States were covered in the first round of evaluation.

(ii) The second round of evaluation was conducted in the year 2000-01 pertaining to the programme years 1995-96, 1996-97 and 1997-98. It covered 1303 bank branches, 16397 beneficiaries in 13 districts of 6 States.

(iii) The third round of evaluation was conducted in the year 2004-05 for the programme years 1998-99, 1999-2000 and 2000-01. It covered 873 bank branches, 11,114 beneficiaries in 14 districts of 6 States.

The list of States/districts covered in the three rounds of evaluation is at Annex II. The important findings of the evaluation studies are at Annex III.

(c): The study conducted by the Programme Evaluation Organization of the Planning Commission was an evaluation of the role and contribution of khadi and village industries in the area of production, employment, earnings, alleviation of poverty, etc., and provided the basis for strengthening the sector by enlarging budgetary allocations and also by formulating new schemes such as Product Development, Design Intervention and Packaging (PRODIP), Rural Industries Service Centres (RISC) and Scheme of Fund for Regeneration of Traditional Industries (SFURTI).

Some of the parameters of the PMRY, viz., increase in maximum age limit to 45 years for Scheduled Caste/Scheduled Tribe, ex- servicemen, physically challenged and women applicants, reducing the minimum educational qualification to Class VIII pass, raising the eligible family income ceiling to Rs. 40,000 per annum, etc., were modified in the year 1999-2000. Government has approved introduction of improved design parameters of the PMRY, in terms of enhancing the family income limits for eligibility, project cost ceilings, corresponding ceilings of subsidy, rates of assistance to States towards training of beneficiaries before and after selection, etc. during 2007-08.

(d) and (e) : It is not correct to state that the performance of various schemes of agro and rural industries including PMRY Scheme has deteriorated. The details of growth in the value of production of the khadi and village industry sector as well as employment and number of self employment ventures and employment generated under PMRY, during each of the last three years are given below:

Year	Khadi and Village Industries	PMRY	Production	Employment	Number of self	Estimated	(Rs. crore)	(lakh persons)	employment	Employment	ventures	(lakh persons)
2003-04 9681.78 71.19 2,19,444 3,29,166 2004-05 10920.44 76.78 2,48,264 3,72,396 2005-06 12383.84 82.77 2,62,281 3,93,422