Lok Sabha Question No. 5041 (UNSTARRED), answered on 2018-03-26
Subject: Tapping of Rural Talent by KVIC
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: ALOK SANJAR

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

## LOK SABHA UNSTARRED QUESTION NO.5041 TO BE ANSWERED ON 26.03.2018

## TAPPING OF RURAL TALENT BY KVIC

## 5041.   SHRI ALOK SANJAR:

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

- (a) whether  the  target  set  by  Khadi  and  Village  Industries  Commission  for tapping of rural talent and resources has been attained;
- (b) if so, the details thereof;
- (c) whether  the  Government  proposes  to  start  schemes  to  encourage  the unemployed youth of rural areas and buy the products manufactured by them on priority; and
- (d) if so, the details thereof?

## ANSWER

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

(a)to(d): The objective of  Khadi and Village Industries  Commission (KVIC)  is  to  generate  employment  opportunities  in  the  country  through implementation  of  Khadi  and  Village  Industries  (KVI)  programmes.  A  large number  of    KVI  institutions,  entrepreneurs  of  the  rural  India  have  been benefitted through KVI Schemes and have become self-reliant by setting up of micro  KVI  units  which  not  only  generate  employment  opportunities  for themselves but also to other unemployed youth of the country.

KVI  institutions  and  entrepreneurs can sell their  products  through  8058 (approximately)  sales  outlets  run  by  Khadi  Institutions  spread  all  over  the country.  The  products  can  also  be  sold  through  7  Departmental  Sales  Outlets (DSOs) of KVIC located at Mumbai, Kolkata, Ernakulum, Bhopal, Goa, Patna and Delhi.

KVIC has taken the following steps to encourage the unemployed youth of rural areas and promote marketing of products manufactured by them:

- i) 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%).

Assistance would be provided under the MPDA Scheme to the eligible 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) |

- ii) Participation  in  domestic  international  exhibitions  at  State  and  National levels wherein KVIs are allowed to participate and market their products. Assistance  is  also  provided  to  Exporters  participating  in  International Trade  Fairs  held  in  India  like  India  International  Trade  Fair  (IITF)  New Delhi  where  stall  rentals  are  subsidized  for  the  exporting  institutions. KVIC  also  supports  KVI  institutions/units  in  the  marketing  of  their products  through  organizing  National,  Zonal,  State  and  District  level exhibitions.
- iii) KVIC has taken the initiative to open premier 'Khadi Showrooms' known as  'Khadi  Lounge'  to  make  available  premier  Khadi  products  including designer  products.  Such  type  of  Lounges  has  already  been  opened  in Jaipur, Mumbai, New Delhi and Bhopal.

- iv) KVIC has entered into contract with popular retail chain stores for setting up of 'Khadi Korner' in the retail chains based on the concept of 'Shop in Shop'.    KVIC  has  entered  into  an  agreement  with  M/s.  GLOBUS, Mumbai, Apna Bazar and Cotton Bazar to set up such stores.  KVIC has also  entered  into  agreement  with  private  sector  players  like  Raymond's, M/s.  Aditya  Birla  Group,  etc.  for  marketing  of  Khadi  in  their  retail showrooms.
- v) To ensure the genuineness of Khadi, 'Khadi Mark' has been notified by Government of India. 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.
- vi) KVIC has been catering to the need of Government Departments and bulk buyers such as, Defence, Health & Family Welfare Department, Post and Telegraph Department, P.M. Office, ONGC, 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.

Under Prime Minister's Employment Generation Programme (PMEGP),52912  number  of  entrepreneurs  have  set  up  their  enterprises  and 407840 number of employment opportunities have been generated and Margin Money subsidy of Rs. 1280.94 crore has been disbursed to these entrepreneurs during 2016-17.

During  2016-17,  KVIC  has  generated  employment  opportunities  to  136.40 lakh persons through KVI Schemes. The KVI Units, entrepreneurs promoted by KVIC have effected production of Rs. 42631.09 crore and sales to the tune of Rs. 52138.21 crore.

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