(a): whether the Government has taken a decision to revamp the Khadi and Village Industries Commission constituted under the Parliamentary Act of 1957;
(b): if so, the reasons therefor;
(c): whether it has proposed to constitute an expert group for this purpose; and
(d): if so, the details thereof alongwith its terms and conditions?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )
(a)to(d): A statement is placed on the Table of the Sabha.
STATEMENT REFERRED TO PART (a) to (d) OF LOK SABHA STARRED
QUESTION NO. 108 TO BE ANSWERED ON 08.12.2004.
(a)&(b) : In the National Common Minimum Programme, the Government
has declared to revamp the Khadi and Village Industries Commission
(KVIC). This has been necessitated mainly because of the steep
decline in employment in the Khadi sector and nearly stagnant
sales of khadi over the years, the need to take effective measures
to introduce modern management practices in the KVIC and make the
khadi products competitive in the globalised economy and to enable
the Government to generate more employment opportunities in the
rural areas through the schemes, projects and other activities of
the KVIC. Towards this objective, the Government has dissolved the
Commission with effect from 14 October, 2004 in exercise of its
powers under section 25(1) of the KVIC Act, 1956.
(c)&(d): By an order dated 01 December 2004, the Government has
set up a ten Member Expert Committee under the chairpersonship of
Shri D.M. Sukthankar, Former Secretary to the Government of India
and Former Chief Secretary, Government of Maharashtra, with the
following terms of reference:
(i) to review the existing structure, functioning and performance
of the KVIC since its inception;
(ii) to review the Khadi and Village Industries Commission Act,
1956 (No. 61 of 1956), KVIC Rules, 1957 and the Regulations made
thereunder and to recommend restructuring, alongwith
modifications, if any, in these statutes, to achieve the
objectives of (a) development of Khadi and Village Industries
(KVI) and (b) making KVIC a more professional and effective body
for implementation of the existing KVI programmes/schemes and/or
launching new programmes/schemes with a view to enhancing
employment and income generation in the rural areas and expanding
the markets for (including export of) Khadi and Village Industry
products; and
(iii) to recommend any other measure(s) considered necessary by
the Committee to revamp the KVIC and to launch new, appropriate
programmes/schemes.
The Committee is expected to submit its report within 60 days from
the date of its first meeting.