Lok Sabha Question No. 1577 (UNSTARRED), answered on 2018-03-05
Subject: Promotion of Khadi
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: REKHA ARUN VERMA, ARVIND GANPAT SAWANT, KRUPAL BALAJI TUMANE, RAMSINH PATALYABHAI RATHWA

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

## LOK SABHA UNSTARRED QUESTIONNO.1577 TO BE ANSWERED ON 05.03.2018

## PROMOTION OF KHADI

## 1577.   SHRIMATI REKHA VERMA:

SHRI ARVIND SAWANT:

SHRI KRUPAL BALAJI TUMANE:

SHRI RAMSINH RATHWA:

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

- (a) whether the Government proposes to provide a package for equipping Khadi with a new technology and speeding up the task of converting it into an International brand and if so, the details thereof along with the funds allocated for the purpose;
- (b) whether some countries such as Germany are reportedly using Khadi as a brand and selling their products;
- (c) if so, the details thereof along with the corrective steps taken/proposed to be taken by the Government in this regard; and
- (d) the efforts being made by the Government to make Khadi an industry of international standard?

## ANSWER

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

- (a): Government in the Ministry of Ministry of Micro, Small and Medium Enterprises has not  proposed  any  specific  package  for  equipping  Khadi  with  a  new  technology.  However, Khadi  and  Village  industries  Commission(KVIC)  has  been  implementing  a  number  of schemes for the holistic development and promotion of khadi including modernization of the production infrastructure in the country, which include:

## i)Khadi Grant:

1. Strengthening Infrastructure of existing Weak Khadi Institutions and Assistance for Marketing Infrastructure provides for renovation of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions
2. WorkshedScheme  for  Khadi  Artisans  for  providing  assistance  for  construction  of worksheds.

ii)  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%).

iii) 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.

## Scheme-wise funds allocation during the current Financial Year 2017-18

(Rs. in crore)

| Scheme      |     BE |     RE |   Actuals (as on 27.2.2018 |
|-------------|--------|--------|----------------------------|
| Khadi Grant | 315    | 265.1  |                     248.31 |
| MPDA        | 340    | 328.31 |                     328.31 |
| KRDP        | 101.39 | 481    |                     100.97 |

(b)&(c): 'Khadi' has been registered by German company (M/s. Khadi Natureprodukte GbR) as  a  Trade  Mark  with  the  Office  for  Harmonisation  in  the  Internal  Market  (OHIM, Spain) in the EU region thereby granting it exclusive rights for use of the term 'Khadi' in EU. The Government of India and KVIC are working in tandem to expedite the process of deregistering the Trade Mark of 'Khadi'.

(d): New initiatives/efforts being made by the Government to make Khadi an industry of international standard are given at Annexure-I.

Annexure-I referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 1577 for answer on 05.03.2018

Following  are  the  new  initiatives  taken  to  make  Khadi  an  industry  of  international standard:

1. KVIC engaged fashion designer of national and international repute for Fashion Designing to make Khadi products more competitive and appealing in the domestic as well as overseas market segment.
2. Ministry  of  Commerce  and  Industry,  Govt.  of  India  has  extended  KVIC,  the  status  of Deemed  EPC,  for  supporting  promotion  of  Khadi  and  Village  Industries  products  in international  market.  1077  Khadi  &  Village  Industries  Institutions  and  REGP/PMEGP Units  have  taken  its  membership  to  enter  the  field  of  export.  KVIC  through  its  assisted institutions and units participates in various international exhibitions.
3. Tie up arrangement with premier institutions like Federation of Indian Export Organization (FIEO), World Trade Centre (WTC), Indian Trade Promotion Organization (ITPO), Trade Promotion  Council  of  India  etc.,  for  invigorating  business  opportunities  in  the  overseas market by conducting exhibitions and workshops for Khadi Institutions.
4. Tie  up  arrangements  for  bringing  out  innovative  export  quality  product  designs  with NIFT, etc.
5. To ensure genuineness of khadi 'Khadi Mark' has been notified by Government of India.