Lok Sabha Question No. 3210 (UNSTARRED), answered on 2018-08-06
Subject: KVIC Schemes
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAMEN DEKA, ASADUDDIN OWAISI

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

## LOK SABHA UNSTARRED QUESTION NO.3210 TO BE ANSWERED ON 06.08.2018

## KVIC SCHEMES

## 3210.  SHRI RAMEN DEKA: SHRI ASADUDDIN OWAISI:

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

(a)   whether  the  Government  is  providing  rebate  through  Khadi  and  Village  Industries Commission on the sale of khadi and khadi products in the country and if so, the details thereof during the last three years;

(b)  whether on the recommendations of the various Committees, Finance Ministry has asked to find an alternative of the rebate scheme and if so, the details thereof; and

(c)   the details of new scheme launched by the Government for the promotion of khadi and to provide assistance to khadi artisans to enable KVIC to fight market competition in the country including Assam?

## ANSWER

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

(a): Khadi and Village Industries Commission (KVIC) implements Market Promotion and  Development  Assistance  (MPDA)  scheme  for  promotion  of  Khadi  programme. 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%).  Out  of  this,  Khadi  Institutions  pass-on  certain  discount  on  sales  of  khadi  and polyvastra to the customers to enhance their sales during the year.

Disbursement of MMDA to Khadi Institutions during the last three years are as follows:

| Year    |   Disbursement ofMDA (khadi &poly) to KIs (Rs. in lakhs) |
|---------|----------------------------------------------------------|
| 2015-16 |                                                  17776.7 |
| 2016-17 |                                                  32525.9 |
| 2017-18 |                                                  17258   |

(b): The MPDA scheme was started during 2008-09 in place of the Rebate Scheme. Under  rebate  scheme,  Government  was  providing  rebate  on  sales  of  khadi  products, while under MPDA Scheme, MMDA is provided on prime cost of production of khadi. The rebate scheme had been discontinued from the year 2009-10.

(c): No  new  scheme  has  been recently launched for the promotion of khadi programme. However, Ministry of MSME is implementing the following schemes/programmes all over the country including the State of Assam, through KVIC, for the promotion of khadi and assistance to khadi institutions and khadi artisans:

## 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. Workshed Scheme for Khadi Artisans for providing assistance for construction of worksheds.
3. ii) Market Promotion Development Assistance (MPDA) is a unified scheme by merging Market  Development  Assistance,  Publicity,  Marketing  and  Market  Promotion.    A  new component  for  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 in which the institutions are required to pay interest of only 4%, any interest charged by banks over 4% will be paid by the GoI through KVIC.

iv)Khadi Reform and Development Programme (KRDP) has been implemented with the financial  and  technical  assistance  of  Asian  Development  Bank  (ADB)  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.  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.

Performance of MPDA,  ISEC, Strengthening of Infrastructure of Weak Khadi Institutions and Workshed Scheme for Khadi Artisans during the three years is placed at Annexure-I.

New  initiatives  have  been  taken  by  KVIC  to  market  the  Khadi  and  V.I.  products produced by Khadi Institutions and artisans in the country including Assam is placed at Annexure-II.

****

Annexure-I referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 3210 for answer on 06.08.2018

## Performance of MPDA, ISEC, Strengthening of Infrastructure of Weak Khadi Institutions & Workshed Scheme for Khadi Artisans during 2014-15 to 2017-18

## Market Promotion and Development Assistance Scheme (MPDA)

| Year        |   MDApaid (Rs. in crore) |   Number of Inst. | Number of Artisans           |
|-------------|--------------------------|-------------------|------------------------------|
| 2015-16     |                   177.76 |              1877 | Release through institutions |
| 2016-17     |                   325.26 |              1778 | 192383                       |
| 2017-18 (P) |                   198.46 |              1439 | 247985                       |

## Interest Subsidy Eligibility Certificate (ISEC) scheme

| Year        |   ISEC Issued (Rs. in Crore) |   Bank Finance Availed (Rs. in Crore) |   Int. subsidy released (Rs. in Crore) |
|-------------|------------------------------|---------------------------------------|----------------------------------------|
| 2015-16     |                       949.68 |                                422.79 |                                  40.07 |
| 2016-17     |                      1435.71 |                                517.92 |                                  36.39 |
| 2017-18 (P) |                      1702.83 |                                575.21 |                                  36.7  |

## Scheme for Strengthening of Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure

| Year        |   Number of KIs assisted |   Number of sales outlets renovated |   Funds disbursed (Rs. in Crore) |
|-------------|--------------------------|-------------------------------------|----------------------------------|
| 2015-16     |                       15 |                                  15 |                             2.99 |
| 2016-17     |                       35 |                                 117 |                             8.08 |
| 2017-18 (P) |                       34 |                                  49 |                             7.91 |

## Workshed Scheme for Khadi Artisans

P-Provisional

| Year        |   Beneficiaries Covered |   Fund disbursed (Rs. in Crore) |
|-------------|-------------------------|---------------------------------|
| 2015-16     |                    1279 |                           10.72 |
| 2016-17     |                    3272 |                           21.27 |
| 2017-18 (P) |                    2874 |                           15    |

Annexure-II  referred  to  in  reply  to  part  (c)  of  the  Lok  Sabha  Unstarred  Question  No. 3210 for answer on 06.08.2018

The  steps  taken  by  the  Government  for  promotion  of  Khadi  Sector  and  to  ensure adequate remuneration to spinners/weavers in the country are as follows:

1. Liberal policy has been adopted to fix the target of production and sales of Khadi Institutions.
2. 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.
3. KVIC has been catering to the need of Government Departments and bulk buyers such as, Defence, Health &Family Welfare Departments, Paramilitary Forces and other  Ministries  of  Central  &  State  Government  under  Rate  Contract  (RC) agreement with Directorate General of Supplies & Disposals (DGS&D) as well as supply of Non Rate Contract (Non-RC) items like Polyvastra bed sheets and pillow covers to Railways, etc.
4. One of the key interventions  under  reform  programme  is  the  development  and implementation  of  the  Khadi  Mark.  The  Khadi  Mark  was  launched  by  the President  of  India  in  September  2013  subsequent  to  notification  of  the  Khadi Certification  Regulations  2013.  The  Khadi  Mark  not  only  guarantees  the genuineness of Khadi products but also promote Khadi as a brand that connotes social, cultural, and environmental values.
5. 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.
6. 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.
7. A  MoU  was  signed  between  KVIC  and  Aditya  Birla  Fashion  &  Retail  Ltd. (ABFRL), Raymond and Arvind Mills for sale of Khadi fabric in  country  and abroad.
8. KVIC has entered into an agreement with M/s. GLOBUS a retail clothing stores chain having its HO in Mumbai for setting up of Khadi Korner a shop in shop concept initially in Globus Showroom at Noida, followed by Globus showroom in Chennai and Ahmedabad.
9. Setting up of modern Khadi Lounge with exquisite Khadi designer garments and V.I. products for making shopping Khadi a pleasure.
10. Launching  of  franchise  scheme  to  expand  the  sales  distribution  network  with zero investment.
11. Tie  up  with  e-Commerce  platform  for  on-line  marketing  through  e-Commerce companies like Paytm, Aaarmart.
12. Special  efforts  to  attract  youth  by  introducing  attractive  T-shirts,  Khadi  jeans, jackets, kurtis, etc. as well as launching a range of casual wear  called vicharvastra specially designed by Ms. RituBeri.
13. Opening  of  sales  outlets  at  domestic  as  well  as  international  airports  like Visakhapatnam, Lucknow, Ahmedabad, etc.
14. Introducing  store  app  through  mobile  application  to  facilitate  the  customers  to locate  the  Khadi  India  sales  outlet  at  various  geographical  location  to  increase foot falls at various stores under Khadi sector.
15. Introduction  of  pre-paid  Gift  Voucher  Scheme  for  corporate  gifting  including PSU and Government Departments.