Lok Sabha Question No. 4164 (UNSTARRED), answered on 2016-12-12
Subject: Khadi Institutions
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: SUNIL KUMAR SINGH

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4164 TO BE ANSWERED ON 12.12.2016

## KHADI INSTITUTIONS

## 4164.       SHRI SUNIL KUMAR SINGH:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the details of the Khadi Institutions functioning and its financial assets and liabilities in the country at present, Institution-wise and State/UT-wise;
- (b) the  number  of  employees  working  in  the  said  Institutions  at  present,  Institution-wise; and
- (c)   the steps taken/proposed to be taken by the Government to promote and provide special status to khadi?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)&(b): State/UT-wise  number  of  Khadi  Institutions  functioning  in  the  country  at present is given at Annexure - I.

As  regards  information  regarding  Institution-wise  financial  assets  and  liabilities  is concerned, Ministry of MSME/Khadi and Village Industries Commission (KVIC) does not maintains data of assets and liabilities of the Institutions as they are independent autonomous bodies and free to make their own transactions and create any assets.

- (c): To promote Khadi, the following new initiatives have been taken:
1. KVIC has applied to register 'Khadi' as a word mark and 'Khadi India' as a Trade  mark  in  27  classes  for  various  products  among  45  classes  listed  out  in  the Intellectual  Property  Rights  Act  at  National  Level  as  well  as  has  filed  an  online application  for  registering  'Khadi'  as  a  trade  mark  under  International  bureau  in European Union and other countries under 16 different class.
2. KVIC  have  introduced  'Khadi  Mark'  wherein  producers  of  Khadi  has  to obtain  Khadi  Mark  Certificate  for  attaching  Khadi  Mark  label  with  the  Khadi  and Khadi  product  to  be  sold  by  them  in  the  market.    KVIC  has  given  'Khadi  Mark' certification to groups such as Raymond's, Arvind Mills, Peter England-Birla group, etc. for increasing sale of khadi.

3. Khadi certification has been made online and simple to enable new companies to start Khadi venture.
4. KVIC has taken up designing and marketing of products targeting the youth of the country including introduction of khadi denim and khadi T-shirts.
5. KVIC  has  started  e-commerce  platform  and  franchisee  system  for  online marketing  of  Khadi  products  and  extending  the  marketing  network.  In  this  regard, proposal received from PayTm for launching KVI products online free of cost for 1 st three months has been approved.
6. Guidelines have been issued, advising institutions for flexible pricing of their product  at  all  levels  so  that  the  institutions  can  earn  sufficient  surplus  to  enhance earning of the artisans, associated with them, as much as possible.
7. For supporting implementation of Khadi programme, Govt. of India extends Market  Development  Assistance  (MDA)  to  Khadi  Institutions  (KIs).  Under  the modified  Market  Promotion  &  Development  Assistance  (MPDA)  scheme,  financial assistance is provided to institutions @ 30% of Prime Cost of khadi & polyvastra, to be  distributed  amongst  Artisans  (40%),  Producing  Institutions  (40%)  &  Selling Institutions  (20%)  through  online  transfer  to  KIs  and  271796  artisans.  KVIC  has started  disbursement  of  financial  assistance  to  KIs  as  well  as  Artisans  under  DBT mode where the portion of Modified MDA (MMDA) is directly credited in their bank accounts.
8. KVIC  also  provides  interest  subvention  for  the  bank  finance  for  meeting capital requirement, under the Interest Subsidy Eligibility Certificate (ISEC) Scheme, availed  by  KIs.  The  subsidy  under  the  scheme  is  also  remitted  directly  to  the  cash credit account of KIs online.
9. KVIC as well as Khadi institutions are working with the reputed retailers to offer  suitable  online  platform  for  retailing  khadi  and  khadi  products  through  digital marketing.
10. Export incentive of 5% of Freight On Board (FOB) value of direct export of Khadi products is provided to KVI institutions/units registered with KVIC. Besides, KVIC has also been focusing on quality participation in International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for Khadi products.  KVIC has been given the status of 'Deemed Export Promotion Council' by M/o Commerce & Industry, under which it has already registered more than 900 exporters.

* * *

## Annexure-I

## Annexure-I  referred  to  in  reply  to  part  (a)&(b)  of  the  Lok  Sabha  Unstarred Question No. 4164 for answer on 12.12.2016

State-wise details of the Khadi Institutions during 2015-16

| Sl. No.   | State/UT                 |   No. of Institutions |
|-----------|--------------------------|-----------------------|
| 1         | Jammu &Kashmir           |                    89 |
| 2         | Himachal Pradesh         |                    16 |
| 3         | Punjab                   |                    29 |
| 4         | Chandigarh               |                     0 |
| 5         | Uttarakhand              |                    59 |
| 6         | Haryana                  |                    98 |
| 7         | Delhi                    |                    11 |
| 8         | Rajasthan                |                   136 |
| 9         | Uttar Pradesh            |                   634 |
| 10        | Bihar                    |                    95 |
| 11        | Sikkim                   |                     1 |
| 12        | Arunachal Pradesh        |                     2 |
| 13        | Nagaland                 |                     2 |
| 14        | Manipur                  |                    13 |
| 15        | Mizoram                  |                     1 |
| 16        | Tripura                  |                     1 |
| 17        | Meghalaya                |                     2 |
| 18        | Assam                    |                    24 |
| 19        | West Bengal              |                   339 |
| 20        | Jharkhand                |                    21 |
| 21        | Odisha                   |                    85 |
| 22        | Chhattisgarh             |                    22 |
| 23        | Madhya Pradesh           |                    27 |
| 24        | Gujarat [incl. D&D]      |                   172 |
| 25        | Maharashtra [incl. D&NH] |                    34 |
| 26        | Andhra Pradesh           |                    83 |
| 27        | Telangana                |                    10 |
| 28        | Karnataka                |                   191 |
| 29        | Goa                      |                     0 |
| 30        | Lakshadweep              |                     1 |
| 31        | Kerala                   |                    39 |
| 32        | Tamil Nadu               |                    74 |
| 33        | Puducherry               |                     1 |
| 34        | A&N Island               |                     1 |
|           | Total                    |                  2313 |