Lok Sabha Question No. 361 (STARRED), answered on 2016-12-12
Subject: Khadi and Village Industries Commission
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: SURESH KODIKUNNIL, SUDHEER GUPTA

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

## LOK SABHA STARRED QUESTION NO. *361 TO BE ANSWERED ON 12.12.2016

## KHADI AND VILLAGE INDUSTRIES COMMISSION

## *361  SHRI KODIKUNNIL SURESH:

SHRI SUDHEER GUPTA:

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

- (a) the aims and objectives of the Khadi and Village Industries Commission (KVIC) and the extent to which KVIC has been successful in achieving its aims and objectives;
- (b) the  details  and  salient  features  of  Market  Development  Assistance Scheme being implemented by the Government for KVIC and funds allocated thereunder during the last three years and the current year;
- (c) the number of KVIC units functioning in the country at present and the employment generated therefrom, State/ UT-wise;
- (d) whether  the  Government  is  aware  that  Khadi  garments  and  its  other products  are  quite  expensive  and  if  so,  the  details  thereof  and  the  reasons therefor  along  with  the  corrective  steps  taken/proposed  to  be  taken  by  the Government in this regard; and
- (e) whether the Government has undertaken/proposes to undertake a review of the functioning of KVIC to make it more productive and result-oriented and if so, the details and the outcome thereof?

## ANSWER

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI KALRAJ MISHRA)

- (a) to (e): A statement is laid on the table of the House

## STATEMENT REFERRED TO IN REPLY TO THE PART (a) to (e) OF LOK SABHA STARRED QUESTION No.*361 FOR ANSWER ON 12.12.2016

(a): Khadi  and  Village  Industries  Commission  (KVIC)  is  one  of  the  major organizations in the decentralized sector for generating sustainable non-farm employment  opportunities  in  rural  areas  at  a  low  per  capita  investment.  KVIC undertakes  activities  like  skill  improvement,  transfer  of  technology,  research  & development,  marketing,  etc.  and  helps  in  generating  employment/self-employment opportunities in rural areas.  The main objectives of KVIC include:-

- (i) social objective of providing employment in rural areas;
- (ii) economic objective of producing saleable articles; and
- (iii) wider objective of creating self-reliance amongst people and building up a strong rural community spirit.

Khadi  and  Village  Industries  sector  has  helped  the  country  in  providing employment  to  a  large  number  of  persons  and  397709  entrepreneurial  units  under Prime Minister's Employment Generation Programme (PMEGP) have been setup in the country till 30.11.2016.

(b): Market Development Assistance system, which was in operation till recently, provides for financial assistance to institutions @ 20% of the value of production of khadi and polyvastra, to be shared among artisans, producing institutions and selling institutions in the ratio 25:30:45. MDA provides institutions the flexibility to use the assistance  for  improving  the  outlets,  products  and  production  processes,  besides giving incentive to customers, etc.  This scheme has since been modified as Market Promotion Development Assistance (MPDA) scheme with effect from 14.8.2015.  A new component of Infrastructure namely setting up of Marketing Complexes /Khadi Plazas has been added to expand the marketing net worth of Khadi & VI products. Under  the  modified  MPDA  scheme,  Modified  MDA  (MMDA)  is  provided  to institutions @ 30% of Prime Cost of khadi and polyvastra, to be distributed amongst Artisans  (40%),  Producing  Institutions  (40%)  and  Selling  Institutions  (20%),  which will  help  the  Artisans  and  Khadi  Institutions  thus  resulting  in  the  development  of Khadi  in  the  country.  Funds  allocated  and  released  during  the  last  three  years  and current under MDA/MPDA scheme is as under:

*Upto 30.11.2016

| Year         |   R.E. (Rs. in crore) | Funds released (Rs. in crore)   |
|--------------|-----------------------|---------------------------------|
| 2013-14      |                139.8  | 126.94                          |
| 2014-15      |                201.83 | 196.94                          |
| 2015-16      |                148.4  | 147.48                          |
| 2016-17 (BE) |                341.63 | 312.17*                         |

(c): The  number  of  KVI  institutions  functioning  in  the  country  is  given  at Annexure-I and the number of PMEGP units functioning in the country at present and the employment generated therefrom, State/ UT-wise is given at Annexure-II.

(d): No Madam, Khadi sector produces a wide range of Khadi fabrics catering to the  masses  as  well  as  to  the  niche  market.    Of  late  Khadi  has  become  'Khadi  for Fashion'  catering  to  high  value  Khadi  garments.    Government  has  taken  steps  to ensure that the Khadi garments cater to all categories of society especially the youth by involving reputed fashion designers and Fashion Design Institutes for meeting the quality and design of Khadi garments which would be acceptable to the youth.

(e): Ministry  of  MSME  reviews  the  functioning  and  performance  of  KVIC  from time to time.  In the recent past, reviews have been held at the level of Minister on 18.03.2016,  07.06.2016  and  10.09.2016.    Some  of  the  important  outcomes  can  be listed as follows:

- i) An  online  application  system  has  been  made  operational  for  disbursement  of Market Development Assistance (MDA). Disbursement of financial assistance to KIs as well as Artisans is done directly to the bank accounts of the KIs and Artisans online under Direct Benefit Transfer (DBT) mode.
2. ii) KVIC  provides  interest  subvention  for  the  bank  finance  availed  for  meeting working  capital  requirement  of  KIs  under  the  Interest  Subsidy  Eligibility Certificate (ISEC) Scheme.  The subsidy under the scheme is remitted directly to the cash credit account of KIs online.
3. iii) Khadi certification process has been simplified and made online to enable new companies to start Khadi ventures.
4. iv) KVIC has started e-commerce platform for online marketing of Khadi products.
- v) KVIC  has  introduced  the  Franchise  system  for  setting  up  new  outlets  for extending the marketing network across the country.
6. vi) The implementation of the PMEGP has been made online.  The entire process of application  filing,  processing  of  application,  DLTFC  meetings,  sanction  by banks, disbursement of margin money as well as transfer of margin money has been made online through PMEGP portal.

## Annexure-I

## Annexure-I referred to in reply to part (c) of the Lok Sabha Starred Question No. 361 for answer on 12.12.2016

## State-wise registered Khadi Institutions and Artisans for the current year

| S.No.   | Name of State/UTs      | 2016-17* (upto 31.10.16)                           |   Artisans registered with the KIs |
|---------|------------------------|----------------------------------------------------|------------------------------------|
| 1       | Jammu &Kashmir         | 94                                                 |                              23504 |
| 2       | Himachal Pradesh       | 16                                                 |                               8102 |
| 3       | Punjab                 | 32                                                 |                              44037 |
| 4       | UT Chandigarh          | 0                                                  |                                  0 |
| 5       | Haryana                | 108                                                |                              50047 |
| 6       | Delhi                  | 11                                                 |                               4111 |
| 7       | Rajasthan              | 138                                                |                              84040 |
| 8       | Uttarakhand            | 64                                                 |                              41097 |
| 9       | Uttar Pradesh          | 640                                                |                             410501 |
| 10      | Chhattisgarh           | 22                                                 |                               8340 |
| 11      | Madhya Pradesh         | 27                                                 |                               6921 |
| 12      | Sikkim                 | 1                                                  |                                  0 |
| 13      | Arunachal Pradesh      | 2                                                  |                                 92 |
| 14      | Nagaland               | 2                                                  |                               2159 |
| 15      | Manipur                | 13                                                 |                                389 |
| 16      | Mizoram                | 1                                                  |                                  0 |
| 17      | Tripura                | 1                                                  |                                468 |
| 18      | Meghalaya              | 2                                                  |                                 96 |
| 19      | Assam                  | 24                                                 |                              16796 |
| 20      | Bihar                  | 96                                                 |                             110457 |
| 21      | West Bengal            | 363                                                |                             103515 |
| 22      | Jharkhand              | 21                                                 |                               4019 |
| 23      | Odisha                 | 86                                                 |                               4191 |
| 24      | Andaman &Nicobar       | 1                                                  |                                  0 |
| 25      | Gujarat [incl D&D]     | 173                                                |                              38921 |
| 26      | Maharashtra[incl D&NH] | 34                                                 |                               3216 |
| 27      | Goa                    | 0                                                  |                                  0 |
| 28      | Andhra Pradesh         | 86                                                 |                                  0 |
| 29      | Telangana              | 11                                                 |                              33113 |
| 30      | Karnataka              | 191                                                |                              39824 |
| 31      | Kerala                 | 39                                                 |                              17863 |
| 32      | Lakshadweep            | 1                                                  |                                  0 |
| 33      | Tamil Nadu             | 74                                                 |                              51614 |
| 34      | Pondicherry            | 1                                                  |                                  0 |
|         | Total                  | 2375 [90 new KIs listed in 2015-16 upto 29.2.2016] |                            1107433 |

## Annexure-II referred to in reply to part (c) of the Lok Sabha Starred Question No. 361 for answer on 12.12.2016

## State-wise details of PMEGP Units set up and employment generated since inception and upto 30.11.2016

| Sl. No.   | State/UT                   |   PMEGP Units |   Employment generated (No. of persons) |
|-----------|----------------------------|---------------|-----------------------------------------|
| 1         | Jammu& Kashmir             |         14666 |                                  112558 |
| 2         | Himachal Pradesh           |          7159 |                                   36634 |
| 3         | Punjab                     |          7501 |                                   56322 |
| 4         | UT Chandigarh              |           336 |                                    2317 |
| 5         | Uttarakhand                |          8541 |                                   59512 |
| 6         | Haryana                    |          7463 |                                   55582 |
| 7         | Delhi                      |          1248 |                                    8409 |
| 8         | Rajasthan                  |         14435 |                                  126217 |
| 9         | Uttar Pradesh              |         37404 |                                  382795 |
| 10        | Bihar                      |         24941 |                                  187558 |
| 11        | Sikkim                     |           456 |                                    1861 |
| 12        | Arunachal Pradesh          |          2581 |                                   18777 |
| 13        | Nagaland                   |          3236 |                                   29424 |
| 14        | Manipur                    |          4364 |                                   21203 |
| 15        | Mizoram                    |          4298 |                                   33618 |
| 16        | Tripura                    |          8359 |                                   60560 |
| 17        | Meghalaya                  |          3562 |                                   20163 |
| 18        | Assam                      |         41852 |                                  206929 |
| 19        | West Bengal                |         40209 |                                  358950 |
| 20        | Jharkhand                  |         13687 |                                   80468 |
| 21        | Odisha                     |         21060 |                                  166577 |
| 22        | Chhattisgarh               |          9411 |                                   79201 |
| 23        | Madhya Pradesh             |         16463 |                                  141493 |
| 24        | Gujarat [incl. Daman &Diu] |         10240 |                                  115842 |
| 25        | Maharashtra [incl. D&NH]   |         25146 |                                  193687 |
| 26        | Andhra Pradesh             |         14179 |                                  239877 |
| 27        | Telangana                  |          1708 |                                   19050 |
| 28        | Karnataka                  |         17467 |                                  154339 |
| 29        | Goa                        |           728 |                                    8363 |
| 30        | Lakshadweep                |            83 |                                     446 |
| 31        | Kerala                     |         12188 |                                   90040 |
| 32        | Tamil Nadu                 |         20876 |                                  263773 |
| 33        | Puducherry                 |           664 |                                    3742 |
| 34        | A &NIslands                |          1198 |                                    3868 |
|           |                            |        397709 |                                 3340155 |