MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI DINSHA PATEL)
(a) & (b): The Government (in the Ministry of Micro, Small and Medium Enterprises),
supplements the efforts of the States / Union Territories for development and promotion
of micro, small and medium enterprises, including khadi, village, coir and cottage industries,
through various schemes / programmes relating to credit, infrastructural development, technology
upgradation, marketing, entrepreneurial development, etc, throughout the country. The value of
production of khadi in the country has been showing an upward trend during the last 5 years.
The estimated value of production of village and coir industries has also shown consistently
upward trend. The details of growth in the value of production and sales of the KVI sector as
well as employment during each of the last three years are given below:
Production Sales/Export Cumulative Employment
Year (Value Rs. crore) (lakh persons)
Khadi (Value V.I. (Value Coir fibre Khadi V.I. Coir Khadi V.I. Coir Rs.crore) Rs.crore) (Quantity Sale Sale Export in lakh MTs)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
2006-07 491.52 13527.19 4.30 663.19 18888.21 605.17 8.84 80.08 6.41
2007-08 543.39 16134.32 4.38 724.39 20819.09 592.88 9.16 90.11 6.59
2008-09 585.25 16753.62 4.91 799.61 21948.59 639.97 9.50 94.41 6.75
(c): Some ‘micro enterprises’ / Village Industry units /self-employment ventures do suffer
losses and close down. The reasons for such losses include use of obsolete technology,
inconsistent quality of products, product design not being in keeping with market demand,
lack of entrepreneurial and managerial skills, etc. The State-wise details of sick industries
which have closed down are not maintained centrally.
(d) to (f): The Ministry of Micro, Small and Medium Enterprises since 2005-06 has been
implementing a cluster-based SFURTI (Scheme of Fund for Regeneration of Traditional Industries)
through the Khadi and Village Industries Commission (KVIC) and Coir Board under which 29 khadi,
50 village industries and 26 coir clusters each having more than 500 traditional artisans, have
been targeted by providing them with improved equipments, business development services,
training, capacity building and exposure visits, design and marketing support, common facilities
centres, etc., to make these activities competitive and become sustainable. Further, there is
a scheme of ‘Strengthening Infrastructure of existing weak khadi institutions and Assistance
for Marketing Infrastructure’ with a target of revitalization of 100 weak khadi institutions.
Besides, under the scheme of Khadi Reform and Development Programme, revitalization of khadi
activities have been targeted in 300 khadi institutions all across the country. Barring these,
there is no fresh proposal at present for any special package for these industries.
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.
