MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI VIRBHADRA SINGH)
(a) The Government through an Act of Parliament had established in 1956 a
statutory Body named âKhadi and Village Industries Commission (KVIC)â for the
development of khadi and village industries.
According to KVIC, at present, there are 2065 khadi institutions
functioning in the country and assistance has been provided for setting
up of around 4.33 lakh units under the erstwhile Rural Employment Generation
Programme (REGP) and the present Prime Ministerâs Employment Generation
Programme (PMEGP) upto July 2011. The state-wise number of such units is
provided in Annexure-I.
(b) Since the establishment of KVIC, Government of India has been making
various interventions from time to time through KVIC for the development of
the khadi and village industries sector including the following:
(i) Enhanced budget allocation over the years for the khadi and village
industries sector.
(ii) Replacing the erstwhile Rebate scheme with more flexible, growth
stimulating and artisans oriented scheme of Market Development Assistance
from 2010-11.
(iii) Taking up development of 79 clusters in khadi and village industries
sector for their regeneration.
(iv) Introduction of three new schemes in the sector namely âEnhancing
productivity and competitiveness of khadi industry and artisansâ, âworkshed
scheme for khadi artisanâ and âScheme for strengthening infrastructure of
existing weak khadi institutions and Assistance for marketing infrastructureâ.
(v) To build up entrepreneurship in the sector, a credit linked subsidy
programme named Prime Ministerâs Employment Generation Programme has been
launched in 2008-09 under which margin money assistance is provided to
first generation entrepreneurship to set up new units.
(vi) Introduction of a comprehensive Khadi Reform and Development
Programme in 2009-10 with an assistance of US $ 150 million from Asian
Development Bank to benefit 300 khadi institutions.
(c) The year-wise funds released by Ministry of Micro, Small and Medium
Enterprises to KVIC and Mahatma Gandhi Institute for Rural Industrialisation
(MGIRI) during last three years is shown below, which indicates that the
government is increasingly putting more emphasis on the development of
the KVI Sector :-
Year Funds (in Rs. crore) released to KVIC/MGIRI
KVIC MGIRI Total
2008-09 1104.94 3.00 1107.94
2009-10 824.06 3.00 827.06
2010-11 1444.16 5.85 1458.31
2011-12 1581.00 10.00 1591.00
(Target)
The state-wise allocation of Margin Money subsidy under PMEGP for
last three years the current year is indicated in Annex-II.