Lok Sabha Question No. 915 (UNSTARRED), answered on 2016-11-21
Subject: Promotion of KVIC Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: JYOTI DHURVE, TAMRADHWAJ SAHU, AJAY NISHAD, PREM SINGH CHANDUMAJRA

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

## LOK SABHA UNSTARRED QUESTION NO. 915 TO BE ANSWERED ON 21.11.2016

## PROMOTION OF KVIC PRODUCTS

## 915. SHRIMATI JYOTI DHURVE:

SHRI TAMRADHWAJ SAHU:

SHRI AJAY NISHAD:

PROF. PREM SINGH CHANDUMAJRA:

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

- (a) whether the Government proposes to promote the production and export of the Khadi and Village Industries Commission (KVIC) products including khadi;
- (b) if so, the details thereof including funds allocated for the purpose and number of jobs likely  to  be  created  therefrom  during  each  of  the  last  three  years  and  the  current  year, State/UT-wise;
- (c) whether the Government proposes to start  online  sale of  KVIC  products,  if  so,  the details thereof and the time by which it is likely to be started;
- (d) whether the Government intends to grant the status of Export Development Council to the KVIC, if so, the details thereof; and
- (e) whether  the  Government  proposes  to  introduce  the  use  of  khadi  products  in  the Government offices, if so, the details thereof and the current status of the proposal?

## ANSWER

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

- (a): Yes Madam. Ministry is taking several steps for promotion and introduction of Khadi &  Village  Industries  products  in international  markets.  Khadi  and  Village  Industries Commission (KVIC) has obtained the status of Deemed Export Promotion Council (DEPC) from the Ministry of Commerce & Industry. 1064 Khadi and Village Industries Institutions and  Rural  Employment  Generation  Programme  (REGP)/Prime  Minister's  Employment Generation  Programme  (PMEGP)  units  have  taken  its  membership  to  enter  the  field  of export.  The  following  steps  have  been  taken  to  boost  the  export  of  Khadi  and  Village Industries products:
1. Participation  of  KVIC  in  India  International  Trade  Fair  (IITF)  organized  by ITPO.

: 2 :

2. Organizing Export promotion workshops.
3. Participation of KVIC in international exhibitions.
4. Assistance would be provided under the Market Promotion and Development Assistance  (MPDA)  Scheme  to  the  eligible  Khadi  and  Village  Industries  (KVI) Institutions  for  participation  in  International  Exhibitions/Trade  Fairs  held  in  foreign countries in order to showcase KVI products to foreign countries, access international buyers and sellers and forge business alliances, etc.

The eligible items for such participation and the scale of assistance would be as under:

| S.No .   | Eligible items   | Scale of assistance                                                                                                                                                                    |
|----------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)       | Space Rent       | For KVIs - 100% of the space rent subject to a maximum of Rs.1.00 lakh or actual rent paid, whichever is lower (for one representative from each participating enterprise)             |
| ii)      | Air Fare         | For KVIs - 100% of the Economy Class air fare subject to a maximum of Rs.1.50 lakh or actual fare paid, whichever is lower (for one representative from each participating enterprise) |

5. 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.
6. 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.

: 3 :

- (b): KVIC has participated in 8 International Exhibitions in the last three  years and the funds allocated for this purpose in the last three years is Rs.48.17 lakh.  The details of the International Exhibitions is given at Annexure-I.  KVIC does not maintain the figures of the jobs created due to exports of Khadi as the majority of the exports is done through merchant exporters.
- (c): Efforts  are  being  made  to  make  available  the  Khadi  &  Village  Industries  products through  e-Commerce  portal  online.  In  this  regard,  proposal  received  from  PayTm  for launching KVI products online free of cost for 1 st three months has been approved.
- (d): In  order  to  boost  export  of  Khadi  products,  KVIC  has  been  given  the  status  of 'Deemed Export Promotion Council', under which it has already registered more than 900 exporters.
- (e): Yes Madam.  KVIC has been catering to the need of Government Departments and bulk buyers such as Railways, Defence, Health & Family Welfare Departments, Paramilitary forces  and  other  Central  &  State  Government  Ministries.    In  order  to  increase  the  sale  of Khadi products, KVIC has also registered under Rate Contract (RC) system of Directorate General of Supplies & Disposals (DGS&D).

A total  of  Rs.7183.44  lakh  worth  of  Khadi  products  have  been  supplied  to  various Government Departments during 2015-16.

Government  has  not  mandated  the  use  of  Khadi  products,  however,  in  order  to promote Khadi and Khadi products, letters have been addressed to all Ministries, Departments  and  CPSUs  by  the  Minister  (MSME),  Secretary  (MSME)  and  Chairperson (KVIC).

## Annexure-I referred to in reply to part (b) of the Lok Sabha Unstarred Question No. 915 for answer on 21.11.2016

## Details of International Exhibitions participated by KVIC

| Year    | Participated                                                                                                       |   Expenditure (Rs. in lakhs) |
|---------|--------------------------------------------------------------------------------------------------------------------|------------------------------|
| 2013-14 | 1) Indian Trade Fair(ITF), Dubai from 3-5 September, 2013                                                          |                        10.14 |
| 2013-14 | 2) Australian International Sourcing Fair, Melbourne, Australia from 13-15 Nov., 2013.                             |                         3.58 |
| 2013-14 | 3) AF-L Artigiano in Fiera, International Craft Selling exhibition, Milan(Italy) from 30th Nov. to 8th Dec., 2013  |                         9.35 |
| 2013-14 | 4) 'Sourcing at Magic' at Las Vegas, USA from 17-20 Feb., 2014                                                     |                         7.03 |
| 2014-15 | 1) An International Trade Fair at Basel (Switzerland) from 6-15 Feb., 2015.                                        |                         7.05 |
| 2015-16 | 1) International Exhibition 'Daar-Es-Salaam International Trade Fair' at Tanzania from 28th June to 8th July, 2015 |                         5.28 |
| 2015-16 | 2) Sydney Royal Easter Shine, Sydney (Australia) 17-30 March 2016                                                  |                         1.97 |
| 2015-16 | 3)Cairo International Fair Cairo (Egypt) 16-25 March 2016                                                          |                         3.77 |
|         | Total                                                                                                              |                        48.17 |