MINISTER OF STATE (INDEPDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI K.H. MUNIYAPPA)
(a): Khadi Institutions enlisted with the Khadi and Village Industries Commission (KVIC)/
Khadi and Village Industries Boards (KVIBs) of States / Union Territories are required to
create Artisan Welfare Fund Trusts (AWFTs) with a view to extending security and other
help to artisans. The works undertaken by the AWFTs include providing financial help
required by the artisans in their hours of need such as daughterâs marriage, medical
treatment, education of children, construction of house/purchase of property etc. Amount
accruing to Artisan Welfare Fund (AWF) is kept in fixed deposits in nationalized Banks.
Khadi institutions are required to contribute 12 percent of wages of artisans to AWF
whose benefit is extended to all artisans except those who are salaried employees of
khadi institutions. Separate accounts in respect of each artisan showing the
subscriptions made by him / her together with the contribution made by the institution
are maintained. Each artisan, subscribing to this fund is issued a pass book by the
khadi institution. In the case of death of an artisan, the entire amount to his/her
credit in AWFTs is paid to his/her legal heirs or nominees.
(b): State-wise total number of artisans actively engaged in spinning and weaving and
the number of artisans covered under AWFTs (as on 31.03.2012) is given at Annex.
(c): To cover all khadi artisans under AWFTs, KVIC has made membership of AWFTs mandatory
for all khadi and polyvastra institutions affiliated to KVIC and state KVI Boards. KVIC
also circulated a model trust deed for such AWFTs which, inter alia, provides for
supervision of the functioning of these Trusts by the Board of Trustees of AWFTs.