Question : Welfare of Khadi Workers

(a) the details of khadi workers presently engaged in khadi industries in the country, State/UT-wise;

(b) the details of funds allocated and spent on the welfare schemes of khadi workers along with the number of khadi workers benefited therefrom during each of the last three years and the current year, State/UT-wise;

(c) whether the Government has considered various demands of Khadi and Village Industries Corporation including restoration of rebate to enhance viability of khadi industries in the country and if so, the details thereof and if not, the reasons therefor; and

(d) the other steps taken by the Government for the welfare of khadi workers in the country?

Answer given by the minister

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

(a): State/UT-wise details of khadi workers presently engaged in khadi industries in the country is placed at Annexure-I.

(b): Government in the Ministry of MSME has been implementing the following welfare schemes for khadi workers:

(i) Aam Admi Bima Yojana (AABY) (erstwhile Khadi Karigar Janashree Bima Yojana) is a group insurance scheme to provide insurance cover to khadi artisans. The Scheme was formulated by Khadi and Village Industries Commission (KVIC) in association with the Life Insurance Corporation of India (LIC) with annual premium of Rs.100/- per beneficiary which is shared in the ratio of Rs.50/- by the Central Government from Social Security Fund, Rs.25/- by the Khadi Institution and Rs.12.50/- each by Khadi Artisan and KVIC. The scheme is available for artisans in the age group between 18 years to 59 years. The compensation available under the Scheme are as under:
In case of natural death : Rs. 30,000/-
In case of accidental death : Rs. 75,000/-
In case of full permanent disability due to accident : Rs. 75,000/-
In case of part permanent disability due to accident : Rs. 37,500/-


As an ‘add-on’ educational benefit (Shiksha Sahayog Yojana) without any additional premium, up to two school-going children of insured artisans studying in Class 9 to 12(including I.T.I.) are eligible for a scholarship of Rs. 100/- each per month.

The number of artisans covered under the scheme is placed at Annexure-II.

(ii) 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.

Financial assistance provided to Khadi artisans under the scheme is given as follows:
<pre>
Construction of Individual Workshed 20 Sq. mtrs.
Rs. 60,000/- or 75% of the cost of work shed (90% for NER), whichever is less.
Construction of Group of workshed (with Minimum 5 & Maximum 15) 10 Sq. mtrs.
per artisan
Rs. 40,000/- per artisan or 75% of the cost of workshed (90% for NER), whichever is less.
</pre>
Number of worksheds constructed during the last three years and current year is placed at Annexure-III.

State/UT-wise details of funds utilized under AABY and Workshed Scheme for Khadi Artisans for the last three years is placed at Annexure-IV. For the year 2017-18 Rs. 14.996 crore has been allocated and utilized under Workshed Scheme by KVIC. Under AABY, the premium amount for the year 2017-18 is paid to LIC by the Khadi Institutions and KVIC, which is under process.

(c): Government has introduced Market Development Assistance during 2009-10 in place of rebate and has further introduced Market Promotion Development Assistance (MPDA) – A unified scheme by merging Market Development Assistance, Publicity, Marketing and Market Promotion. A new component for 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%).

(d): Artisans Welfare Fund Trusts have been established for the benefit of the artisans at State level. The spinning wages of Khadi artisans were revised from Rs. 4.00 to Rs.5.50 per hank w.e.f. 01.04.2017 and further enhanced from Rs. 5.50 to Rs. 7.50 per hank vide KVIC circular dated 26.12.2017.

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