Question : Promotion of Rural Artisans

(a) the details of schemes/programmes being implemented by the Government to promote the work of rural artisans in the country;

(b) the details of the funds allocated and utilised to promote the work of rural artisans during each of the last three years, State-wise including Karnataka; and

(c) the number of artisans benefited from the schemes during the said period, State-Wise?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI GIRIRAJ SINGH)

(a)to(c): Ministry of Micro, Small and M edium Enterprises (MSME) is implementing the following schemes through Khadi and Village Industries Commission (KVIC) and Coir Board for promotion of Agro-based Cottage Industries in the country:

I. Schemes being implemented by the Ministry:

i) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) from 2005-06 for making Traditional Industries more productive and competitive by organizing the Traditional Industries and artisans into clusters. The Scheme envisages providing need-based assistance for replacement of production equipment, setting up of common facility centres (CFC), product development, quality improvement, improved marketing, training and capacity building etc.

ii) A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE) was launched on 18.3.2015 to promote Innovation and Rural Entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation.

II. Schemes being implemented by Khadi and Village Industries Commission (KVIC):
i) Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi & Village Industries Board (KVIB) and District Industries Centre (DIC). General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.
ii) Market Promotion Development Assistance (MPDA) – A unified scheme by merging Market Development Assistance, Publicity, Marketing and Market Promotion. A new component of Infrastructure namely setting up of Marketing Complexes /Khadi Plazas has been added to expand the marketing network of Khadi & VI products. Under the Modified MDA (MMDA) financial assistance at 30% of the Prime Cost, is distributed amongst Producing Institutions (40%), Selling Institutions (20%) and Artisans (40%).
iii) Interest Subsidy Eligibility Certificate (ISEC) Scheme provides credit at concessional rate of interest through Banks as per the requirement of the Khadi institutions. The institutions are required to pay interest of only 4%, any interest charged by banks over 4% will be paid by the Government of India through KVIC to the banks.
iv) Workshed Scheme for Khadi Artisans was introduced in 2008-09 to provide financial assistance for construction of workshed to khadi artisans belonging to BPL category through the khadi institutions with which the khadi artisans are associated. This empowers khadi spinners and weavers to chart out a sustainable path for growth, income generation and better work environment.
v) Strengthening infrastructure of weak Khadi institutions and assistance for marketing infrastructure: This scheme provides need-based support towards the Khadi sector for nursing the sick/problematic institutions elevated from “D” to “C” category as well as those whose production, sales and employment have been declining while they have potential to attain normalcy and to support creation of marketing infrastructure in other identified outlets. Under this scheme, financial assistance is provided to existing weak Khadi institutions for strengthening of their infrastructure and for renovation of selected khadi sales outlets.
vi) Khadi Reform and Development Programme (KRDP)aims to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinners and weavers, increased artisans’ welfare and to achieve synergy with village industries. Under KRDP, restructured amount of US$ 105 million has been negotiated with Asian Development Bank (ADB) and funds are being provided to the Government of India to be released to KVIC as ‘grants-in-aid’ under budgetary allocation through the Ministry of MSME. Khadi Reform Package envisages reform support in the following areas: (i) Artisan Earnings and Empowerment, (ii) Direct Reform Assistance to 400 Khadi Institutions & (iii) Implementation of a well-knit MIS.


vii) Aam Admi Bima Yojana (erstwhile JanashreeBimaYojana): KVIC in association with LIC is implementing the AABY scheme to provide insurance cover to Khadi artisans against normal and accidental death and disability. Premium is shared between KVIC (12.5%), Khadi institutions (25%), artisans (12.5%) and Govt. of India (50%), Khadi Artisans belonging to the age group of 18 to 59 years are provided insurance cover for the following:
(i) Death (natural) : Rs. 30,000.00
(ii) Death (accidental) : Rs. 75,000.00
(iii) Disability (permanent) : Rs. 75,000.00
(iv) Disability (partial) : Rs. 37,500.00
(v) Educational Benefits (Shiksha Sahayog Yojana) :

Two children of Khadi Artisan who are studying in standard IX to XII including Industrial Training Institutes (ITIs) are eligible for scholarship of Rs.300/- per quarter.
AABY has been converged with Pradhan Mantri Suraksha BimaYojana (PMSBY) and Pradhan Mantri Jeevan Jyoti BimaYojana (PMJJBY)w.e.f. FY 2018-19.

III. Schemes being implemented by Coir Board:
Coir Board is implementing the Coir VikasYojana to cater to the multiple developmental needs of coir industry. Interventions under the following components of the Scheme are taken up during the period from 2017-18 to 2019-20.

1. Skill Upgradation and Mahila Coir Yojana (MCY)
2. Coir Industry Technology Upgradation Scheme (CITUS)
3. Export Market Promotion (EMP)
4. Domestic Market Promotion (DMP)
5. Trade and Industry Related Functional Support Services (TIRFSS)
6. Welfare Measures (Group Personal Accident Insurance Scheme)
7. Plan Science & Technology

State-wise details of funds allocated/ Target of Margin Money and Fund utilized/ achievement of Margin Money under PMEGP Scheme and various schemes of Coir Board during the last three years is placed at Annexure-I.

State/UT-wise number of beneficiaries benefitted under PMEGP, Workshed & AABY and various schemes of Coir Board during the last three years is placed at Annexure-II.

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