Lok Sabha Question No. 2986 (UNSTARRED), answered on 2017-03-20
Subject: Promotion of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BHARATENDRA SINGH, JAYAKUMAR JAYAVARDHAN, HEENA VIJAYKUMAR GAVIT, RAJEEV SHANKARRAO SATAV, DHANANJAY BHIMRAO MAHADIK

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

## LOK SABHA UNSTARRED QUESTION NO. 2986 TO BE ANSWERED ON 20.03.2017

## PROMOTION OF KHADI PRODUCTS

2986.  SHRI KUNWAR BHARATENDRA: DR. J. JAYAVARDHAN: DR. HEENA VIJAYKUMAR GAVIT: SHRI SATAV RAJEEV: SHRI DHANANJAY MAHADIK:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the  number  of  orders  bagged  by  Khadi  and  Village  Industries  Commission  from Public Sector Undertakings (PSUs) and Government Departments during the last three years, PSU/Department-wise;

- (b) whether the Government has taken note that demand for Khadi products is increasing but the growth in production has been lagging and if so, the details thereof and the reasons therefor;
- (c) the  corrective  steps  taken  by  the  Government  to  enhance  production  of  khadi products in the country; and
- (d) the  other  steps  taken  by  the  Government  to  promote  khadi  and  its  products  in  the country?

## ANSWER

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

- (a): The details of the Rate Contract (RC) and Non-RC items (in value terms) during last three  years  and  details  of  the  number  of  orders  received  from  Public  Sector  Undertakings (PSUs) and Government Departments is placed at Annexure-I.
- (b): The growth of Khadi production has continuously increased during the last three years which can be seen in the following table. The production and sales figures of Khadi during the last three years are as follows:

(Rs. in crore)

| Year    |   Production of Khadi | %increase   |   Sales of Khadi | %increase   |
|---------|-----------------------|-------------|------------------|-------------|
| 2013-14 |                811.08 | -           |          1081.04 | -           |
| 2014-15 |                879.98 | 8.49        |          1170.38 | 8.26        |
| 2015-16 |               1065.6  | 21.09       |          1510    | 29.01       |

(c): To  enhance  the  production  of  Khadi  products,  the  Khadi  and  Village  Industries Institutions have been provided financial assistance under various schemes such as SFURTI, KRDP,  Strengthening  of  Infrastructure  of  weak  Khadi  Institutions  and  Assistance  for Marketing Infrastructure, etc.

- (d): The steps taken by KVIC to promote Khadi products in the country is given below:
- i) Efforts are being made to make khadi products more appealing and competitive in the market by engaging designers of international fame viz Ms. Ritu Beri as 'Honorary Consultant'.
- ii) KVIC has taken the initiative to open premier 'Khadi Showrooms' known as Khadi Lounge to make available premier Khadi products including designer products. Khadi products are also available through the KVIC Franchise Outlets.  In Jaipur, Mumbai and New Delhi, Khadi Lounge has already been opened.
- iii) Efforts have been made to make Khadi products on-line and as a part of this initiative tie  up  arrangements  with  M/s.  Paytm  has  been  made  and  launched  through  Khadi Gramodyog Bhavan, New Delhi.
- iv) KVIC has been catering to the need of bulk buyers such as, Defence, Health & Family Welfare,  Paramilitary  Forces  and  other  Ministries  of  Central  &  State  Governments 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.
- v) KVIC as a part of its aggressive marketing efforts introduced 'Gift Voucher Scheme' for its  patrons from Departmental Sales Outlets (DSOs) at Delhi, Kolkata, Mumbai, Goa,  Patna,  Ernakulam  &  Bhopal  and  Visakhapatnam  Airport.  The  'Gift  Voucher Scheme' consists of attractive 'Gift Vouchers' in the denomination of Rs. 500/-, Rs. 1000/- and Rs. 5000/- respectively has been launched.
- vi) Special  Exhibitions  at  Ahmedabad,  Vadodara  &  Mehsana    (Gujarat),  Kakinada  & Rajamundry (A.P.), Shivsagar & Nazira (Assam), KGB Mumbai, KGB Delhi, Panaji, Dehradun (Uttarakhand) and Jaipur (Rajasthan) where employees will purchase Khadi by coupons given by ONGC.

- vii) KVIC has signed a Khadi Mark Registration Agreement with Raymond for promoting Khadi fabrics and ready-mades through Raymonds dealers/showrooms/outlets in India and abroad.
- viii) Financial assistance is also being provided for the renovation/modernization of Sales Outlets of institutions as well as Departmental Sales Outlets (DSOs) and State KVIBs.
- ix) 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 IPR 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.
- x) KVIC has developed an online application system for MDA and the system has been made operational. Institutions are uploading data and filing their MDA claims in the online system and payments are made in DBT form.
- xi) Online application submission and processing of Khadi certificate has been developed and implemented from 2.10.2016.

As a result of above initiatives, sales of khadi products have increased as indicated in Table given above in Part(b) answer.

* * *

## Annexure-I referred to in reply to part (a) of the Lok  Sabha Unstarred Question No. 2986 for answer on 20.03.2017

Details  of  orders  received  by  KVIC  from  PSUs  and  Government  Departments  during  last three years are as follows:

(Rs. in lakhs)

| Sl. No   | Name of Govt. Departments/ Public Sector Undertakings (PSUs)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   2013-14 |   2014-15 |   2015-16 |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|-----------|
| 1.       | Railway                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   4720.2  |   6162.12 |   7183.44 |
| 2.       | PSUs such as ESD Kakinada, Command Hospital, MES, D.G.Q.E.A, Kolkata Police, ATI Dasnagar, A.L.H.W, IT Appellate Tribunal, C.W.E, Directorate of Airworthiness, Asstt. Controller of stationery, Base Hospital, Embarkation head quarter, Census Operation, 225 Coy ASC Ap 99A PO, Commissioner of Railway safety, Survey of India, Institute of Serology, Station Cell Alipur, Survey of India wood street, Forest Survey of India, Controller of Stationery, Garrison of Engineering Ballackper, Central Food Laboratory, Central Staff Training Research Institute, High Court of Kerala, Base Victualling Yard, Indian Audit & Accounts Dept, The Central Income Tax Employees Co-Op society, Dist. Collector Allepy & EKM, Office of the Commissioner of Customs, AG's Office, Regional Passport Office, Indian Maritime University, Mookanoor Grama Panchayat, Dept. Recovery Tribunal, Neelgiris Sarvodaya Sangh, All India Radio, Customs & Central Excise, Garrison Engineering, Kendriya Vidyalaya, BSNL, Paravoor Thaluk Co-Op, Ministry of Agricultural, Southern Railway, CSEZ, Lakshadweep ADM, IG of Police, CIFNET, Post Metric |    553.83 |   1809.2  |   2254.11 |
| Total    | Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   5274.03 |   7971.32 |   9437.55 |