Lok Sabha Question No. 2077 (UNSTARRED), answered on 2019-07-04
Subject: Objectives of Khadi Gram Udyog Commission
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sumedhanand Saraswati

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2077 TO BE ANSWERED ON 04.07.2019

## OBJECTIVES OF KHADI GRAM UDYOG COMMISSION

## 2077. SHRI SUMEDHANAND SARSWATI:

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

- (a) the details of the social objectives of the Khadi Gram Udyog Commission;
- (b) the details of areas falling under the network of Khadi Gram Udyog Commission;
- (c) the works being undertaken by them; and
- (d) the  schemes  started  by  Khadi  Gram  Udyog  Commission  to  make  the  backward  and  rural areas of the country self-sufficient?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

- (a): Khadi and Village Industries Commission (KVIC) is a statutory body created by an act  of  Parliament.    The  social  objective  of  the  KVIC  is  providing  employment  in  rural  as  well  as urban areas of the country.
- (b)&(c): KVIC  functions  with  the  Central  Office,  Mumbai  in  association  with  46  State/ Divisional/Sub  Offices  all  over  the  country,  6  Zonal  offices  at  New  Delhi  (North  Zone),  Bhopal (Central  Zone),  Kolkata  (East  Zone),  Guwahati  (North  East  Zone),  Bengaluru  (South  Zone)  and Mumbai (West Zone). 7 Departmental Sales Outlets having 23 branches, 18 Departmental Training Centres, 17 Non-Departmental Training Centres and 5 Central Sliver Plants. In addition to this, 34 State and UT Khadi and Village Industries Boards (KVIBs) and over 8058 Retail Sales Outlets are also functioning.

All Public sectors Banks with a network of more than one lakh branches spread over the country, KVIC, KVIBs and DICs are implementing Prime Minister's Employment Generation Programme, and other Khadi and Village Industries Schemes are implementing through NGOs, Khadi and V.I. Institutions', units and entrepreneurs spread all over the country.

- (d): KVIC  implements  following  schemes  for  making  rural  people  self-reliant  in  the  country including backward areas and rural areas:
- 1)  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  is  a  credit  linked  subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi & Village Industries Board (KVIB) and  District  Industries  Centre  (DIC).    General  category  beneficiaries  can  avail  of  margin  money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.

Year-wise and State-wise details  of  Margin  Money  allocated  & utilized,  job  opportunities  created and number of units set up under PMEGP Scheme all over the country during 2016-17, 2017-18, 2018-19 & 2019-20 (upto 31.5.2019) are annexed.

- 2) Khadi Programme: For the development and promotion of Khadi Programme, KVIC implements following Schemes with the support of 34 State/UT Khadi and Village Industries Boards (KVIBs) and 2632 Khadi Institutions:
- i) Market Promotion and Development Assistance (MPDA).
3. ii) Interest Subsidy Eligibility Certificate (ISEC)
4. iii) Aam Admi BimaYojana (erstwhile Jana Shree Bima Yojana)
5. iv) Artisans Welfare Fund Trust (AWFT)
- v) Workshed Scheme for Khadi Artisans
7. vi) Strengthening  of  Infrastructure  of  Existing  Weak  Khadi  Institutions  and  Assistance  for Marketing Infrastructure.
- 3)  Village  Industries  Programme  is  broadly  classified  under  seven  groups  for  the  purpose  of implementation of its programmes, which are as under:
- i) Agro Based and Food Processing Industry (ABFPI)
10. ii) Forest Based Industry (FBI)
11. iii) Hand Made Paper and Fibre Industry (HMPFI)
12. iv) Mineral Based Industry (MBI)
- v) Polymer and Chemical Based Industry (PCBI)
14. vi) Rural Engineering and Bio-Technology Industry (REBT)
15. vii) Service & Textile Industry

4)  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 had 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.

- 5) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)has been under implementation since 2005-06 for making Traditional Industries more productive and competitive by organizing  the  Traditional  Industries  and  artisans  into  clusters.  The  Scheme  envisages  providing need-based  assistance  for  replacement  of  production  equipment,  setting  up  of  common  facility centres  (CFC),  product  development,  quality  improvement,  improved  marketing,  training  and capacity building etc.  The scheme was modified as revamped SFURTI scheme during 2016-17.

6) Capacity Building (CB): KVIC conducts training programmes through 40 departmental and nondepartmental  training  centres.  These  training  centres  imparts  need-based  training  under  various disciplines viz. Soap and Detergent making, Food Items, Bakery Products, Ready Made Garments, Beekeeping, Agaratti making, candle making, motor winding etc.

7)  Science  &  Technology:  Research  and  Development  (R&D)  is  a  vital  input  for  stepping  up productivity by bringing improvement in equipment and manufacturing techniques of the craftsman. KVIC  continued  to  increase  the  productivity  and  earnings  of  artisans  and  make  the  production process more artisan-friendly by reducing drudgery in their work. Various advance technologies have been  developed  under  Research  &  Development  schemes  of  KVIC,  which  bring  a  significant difference  in  the  quality,  productivity  and  packaging  of  the  products  manufactured  by  the  rural industries sector.

In  addition  to  above,  KVIC  is  also  implementing  following  programmes  for  promotion  and development  of  traditional  industries  viz.  Beekeeping  (Honey  Mission)  and  Pottery  Development Programme (Kumhar Sashakti karan Programme):

- i)  Bee-Keeping  (Honey  Mission):  KVIC  launched  Honey  (Bee)  Mission  in  July,  2017  for promoting  Beekeeping  and  generating  employment  in  the  beekeeping  potential  States  of  the country.
2. ii)  Pottery Programme (Kumhar Sashakti karan):Under this programme KVIC identify the areas where clusters of traditional pottery workers are available and provide them training and electric pottery wheels and other tools like blunger, Pug Mill, etc.

During the last two years, KVIC has generated additional employment opportunities of 10.58 lakh persons under Khadi and Village Industries in the country which is as follows:

(Employment in lakh persons)

| Year                  |   Cumulative Employment |   New Employment |
|-----------------------|-------------------------|------------------|
| 2017-18               |                  140.36 |             3.96 |
| 2018-19 (provisional) |                  146.98 |             6.62 |

* * *

## Annexure referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 2077 for answer on 04.07.2019

Year-wise and State-wise details of Margin Money allocated & utilized, job opportunities (including women) created and number of units set up (including by women) under PMEGP Scheme during 2016-17, 2017-18, 2018-19 & 2019-20 (upto 31.5.2019)

| Sl.   |                   | 2016-17                                  | 2016-17                                   | 2016-17                     | 2016-17                                         | 2017-18                                   | 2017-18                                   | 2017-18                     | 2017-18                                         |
|-------|-------------------|------------------------------------------|-------------------------------------------|-----------------------------|-------------------------------------------------|-------------------------------------------|-------------------------------------------|-----------------------------|-------------------------------------------------|
| No.   | State/UT          | Margin money subsidy allocated (Rs.lakh) | Margin money subsidy utilized# (Rs. lakh) | Number of projects assisted | Estimated employment generated (No. of persons) | Margin money subsidy allocated (Rs. lakh) | Margin money subsidy utilized# (Rs. lakh) | Number of projects assisted | Estimated employment generated (No. of persons) |
| 1     | Jammu& Kashmir    | 3541.26                                  | 2621.40                                   | 1492                        | 11691                                           | 3272.84                                   | 6913.15                                   | 3753                        | 30024                                           |
| 2     | Himachal Pradesh  | 1970.11                                  | 2185.27                                   | 941                         | 6916                                            | 1785.19                                   | 2042.5                                    | 886                         | 7088                                            |
| 3     | Punjab            | 3504.09                                  | 3181.60                                   | 1266                        | 9858                                            | 3272.84                                   | 3930.46                                   | 1520                        | 12160                                           |
| 4     | UT Chandigarh     | 100                                      | 82.84                                     | 47                          | 376                                             | 100.00                                    | 90.07                                     | 45                          | 360                                             |
| 5     | Uttarakhand       | 2140.93                                  | 2122.33                                   | 1345                        | 9890                                            | 1933.95                                   | 2880.98                                   | 1613                        | 12904                                           |
| 6     | Haryana           | 3371.31                                  | 3383.53                                   | 1377                        | 11016                                           | 3272.84                                   | 4167.04                                   | 1718                        | 13744                                           |
| 7     | Delhi             | 300                                      | 182.41                                    | 119                         | 952                                             | 300.00                                    | 150.65                                    | 115                         | 920                                             |
| 8     | Rajasthan         | 5500.99                                  | 4641.6                                    | 1749                        | 13408                                           | 4909.26                                   | 4929.04                                   | 1577                        | 12614                                           |
| 9     | Uttar Pradesh     | 12981.52                                 | 14271.05                                  | 4074                        | 36315                                           | 11157.41                                  | 16866.47                                  | 5432                        | 43456                                           |
| 10    | Bihar             | 6909.77                                  | 8336.51                                   | 3234                        | 25872                                           | 5653.09                                   | 6558.85                                   | 2307                        | 18456                                           |
| 11    | Sikkim            | 200                                      | 35.93                                     | 27                          | 201                                             | 200.00                                    | 46.36                                     | 37                          | 296                                             |
| 12    | Arunachal Pradesh | 500                                      | 440.34                                    | 301                         | 1984                                            | 500.00                                    | 309.42                                    | 209                         | 1672                                            |
| 13    | Nagaland          | 1751.68                                  | 2007.48                                   | 1018                        | 7783                                            | 1728.96                                   | 2672.15                                   | 930                         | 7440                                            |
| 14    | Manipur           | 1741.7                                   | 2162.78                                   | 1265                        | 8419                                            | 1434.32                                   | 1383.87                                   | 600                         | 4800                                            |
| 15    | Mizoram           | 1253.49                                  | 491.96                                    | 425                         | 3400                                            | 1245.66                                   | 274.05                                    | 249                         | 1992                                            |
| 16    | Tripura           | 1578.62                                  | 3734.66                                   | 2297                        | 17961                                           | 1283.75                                   | 1892.3                                    | 1116                        | 8928                                            |
| 17    | Meghalaya         | 1748.1                                   | 407.89                                    | 329                         | 2632                                            | 1720.32                                   | 118.27                                    | 75                          | 600                                             |
| 18    | Assam             | 5636.41                                  | 4910.38                                   | 6028                        | 31498                                           | 5351.99                                   | 2362.48                                   | 2282                        | 18256                                           |
| 19    | West Bengal       | 3680.3                                   | 6270.32                                   | 3528                        | 26604                                           | 2975.31                                   | 3891.37                                   | 1366                        | 10928                                           |
| 20    | Jharkhand         | 4165.73                                  | 2654.35                                   | 1300                        | 10400                                           | 3570.37                                   | 2439.53                                   | 1111                        | 8888                                            |
| 21    | Odisha            | 5201.65                                  | 6848.96                                   | 3029                        | 20392                                           | 4462.97                                   | 5680.65                                   | 2399                        | 19192                                           |
| 22    | Chhattisgarh      | 4493.3                                   | 4070.73                                   | 1598                        | 12856                                           | 4016.67                                   | 3398.4                                    | 1463                        | 11704                                           |
| 23    | Madhya            | 8527.32                                  | 8346.06                                   | 1940                        | 15520                                           | 7587.04                                   | 7631.41                                   | 1804                        | 14432                                           |
| 24    | Gujarat*          | 5398.45                                  | 7561.61                                   | 1386                        | 11629                                           | 4909.26                                   | 12883.63                                  | 1876                        | 15008                                           |
| 25    | Maharashtra**     | 6111.29                                  | 6001.36                                   | 2325                        | 17799                                           | 5355.56                                   | 8749.73                                   | 3329                        | 26632                                           |
| 26    | Andhra Pradesh    | 2336.59                                  | 4916.08                                   | 1357                        | 14148                                           | 1933.95                                   | 5336.1                                    | 1527                        | 12216                                           |
| 27    | Telangana         | 2004.86                                  | 2561.72                                   | 664                         | 6445                                            | 4611.73 4462.97                           | 4030.21                                   | 1190                        | 9520                                            |
| 28    | Karnataka         | 4941.62                                  | 11609.56                                  | 3575                        | 30286                                           |                                           | 6477.94                                   | 2115                        | 16920                                           |
| 29    | Goa               | 371.62                                   | 191.44                                    | 90                          | 660                                             | 297.53                                    | 149.07                                    | 50                          | 400                                             |
| 30    | Lakshadweep       | 50                                       | 00                                        | 00                          | 00                                              | 100.00                                    | 00                                        | 00                          | 00                                              |
| 31    | Kerala            | 2446.06                                  | 3350.68                                   | 1584                        | 13068                                           | 2082.72                                   | 2910.44                                   | 1347                        | 10776                                           |
| 32    | Tamil Nadu        | 5291.23                                  | 8213.92                                   | 2941                        | 25764                                           | 4760.50                                   | 9717.58                                   | 4095                        | 32760                                           |
| 33    | Puducherry        | 150                                      | 103.65                                    | 66                          | 699                                             | 100.00                                    | 78.95                                     | 44                          | 352                                             |
| 34    | A&N Islands       | 100                                      | 193.46                                    | 195                         | 1398                                            | 100.00                                    | 276.95                                    | 218                         | 1744                                            |
|       | Total             | 110000                                   | 128093.86                                 | 52912                       | 407840                                          | 100449                                    | 131240.07                                 | 48398                       | 387182                                          |

| Sl.   |                   | 2018-19                                   | 2018-19                                   | 2018-19                     | 2018-19                                         | 2019-20 [upto 31.05.2019]                 | 2019-20 [upto 31.05.2019]                 | 2019-20 [upto 31.05.2019]   | 2019-20 [upto 31.05.2019]                       |
|-------|-------------------|-------------------------------------------|-------------------------------------------|-----------------------------|-------------------------------------------------|-------------------------------------------|-------------------------------------------|-----------------------------|-------------------------------------------------|
| No.   | State/UT          | Margin money subsidy allocated (Rs. lakh) | Margin money subsidy utilized# (Rs. lakh) | Number of projects assisted | Estimated employment generated (No. of persons) | Margin money subsidy allocated (Rs. lakh) | Margin money subsidy utilized# (Rs. lakh) | Number of projects assisted | Estimated employment generated (No. of persons) |
| 1     | Jammu &Kashmir    | 4745.12                                   | 6788.34                                   | 3469                        | 27752                                           | 4006.80                                   | 3781.19                                   | 2207                        | 12115                                           |
| 2     | Himachal Pradesh  | 2711.4                                    | 1875.29                                   | 691                         | 5528                                            | 1721.57                                   | 1767.26                                   | 1077                        | 5134                                            |
| 3     | Punjab            | 4617.17                                   | 2316.84                                   | 911                         | 7288                                            | 3026.80                                   | 2902.97                                   | 966                         | 7762                                            |
| 4     | UT Chandigarh     | 94.32                                     | 39.74                                     | 16                          | 128                                             | 90.00                                     | 87.72                                     | 43                          | 323                                             |
| 5     | Uttarakhand       | 2975.4                                    | 2196.67                                   | 1155                        | 9240                                            | 1909.93                                   | 1740.86                                   | 1136                        | 6161                                            |
| 6     | Haryana           | 4664.1                                    | 2435.94                                   | 1003                        | 8024                                            | 3747.40                                   | 3112.09                                   | 1248                        | 7232                                            |
| 7     | Delhi             | 282.96                                    | 69.33                                     | 48                          | 384                                             | 257.35                                    | 254.05                                    | 256                         | 2048                                            |
| 8     | Rajasthan         | 7743.65                                   | 3701.09                                   | 1202                        | 9616                                            | 4188.14                                   | 4384.07                                   | 1988                        | 14537                                           |
| 9     | Uttar Pradesh     | 19171.59                                  | 11675.2                                   | 3236                        | 25888                                           | 17535.32                                  | 14456.87                                  | 4365                        | 43059                                           |
| 10    | Bihar             | 10869.49                                  | 4153.6                                    | 1347                        | 10776                                           | 7118.59                                   | 6588.55                                   | 2430                        | 19624                                           |
| 11    | Sikkim            | 188.64                                    | 42.94                                     | 25                          | 200                                             | 227.38                                    | 186.11                                    | 110                         | 397                                             |
| 12    | Arunachal Pradesh | 471.6                                     | 271.84                                    | 187                         | 1496                                            | 200.08                                    | 38.85                                     | 35                          | 104                                             |
| 13    | Nagaland          | 2825.5                                    | 776.03                                    | 412                         | 3296                                            | 1255.83                                   | 1392.81                                   | 623                         | 4998                                            |
| 14    | Manipur           | 2544.19                                   | 961.86                                    | 585                         | 4680                                            | 2855.92                                   | 1213.98                                   | 685                         | 2715                                            |
| 15    | Mizoram           | 2045.45                                   | 567.68                                    | 417                         | 3336                                            | 924.99                                    | 1026.35                                   | 1134                        | 9072                                            |
| 16    | Tripura           | 1965.99                                   | 777.43                                    | 363                         | 2904                                            | 2748.26                                   | 945.84                                    | 642                         | 5355                                            |
| 17    | Meghalaya         | 2653.7                                    | 278.77                                    | 184                         | 1472                                            | 1250.62                                   | 1056.12                                   | 603                         | 4824                                            |
| 18    | Assam             | 10507.7                                   | 2137.03                                   | 2053                        | 16424                                           | 4969.87                                   | 2869.74                                   | 3483                        | 9026                                            |
| 19    | West Bengal       | 6423.74                                   | 3866.92                                   | 1316                        | 10528                                           | 4765.49                                   | 3400.65                                   | 1873                        | 12746                                           |
| 20    | Jharkhand         | 6193.49                                   | 1415.49                                   | 559                         | 4472                                            | 3462.64                                   | 3559.74                                   | 1839                        | 12873                                           |
| 21    | Odisha            | 7719.19                                   | 3595.65                                   | 1476                        | 11808                                           | 6282.00                                   | 5736.32                                   | 2876                        | 17629                                           |
| 22    | Chhattisgarh      | 6339.11                                   | 3231.88                                   | 1474                        | 11792                                           | 4303.80                                   | 2829.38                                   | 1277                        | 9496                                            |
| 23    | Madhya Pradesh    | 11952.9                                   | 4064.38                                   | 1005                        | 8040                                            | 7729.40                                   | 8117.17                                   | 1979                        | 16497                                           |
| 24    | Gujarat*          | 7501.95                                   | 12828.44                                  | 1811                        | 14488                                           | 6536.16                                   | 6339.73                                   | 1419                        | 14960                                           |
| 25    | Maharashtra**     | 8833.6                                    | 7146.99                                   | 2745                        | 21960                                           | 9718.42                                   | 5285.03                                   | 2497                        | 20161                                           |
| 26    | Andhra Pradesh    | 3742.74                                   | 4609.57                                   | 1126                        | 9008                                            | 4496.85                                   | 2262.37                                   | 642                         | 7740                                            |
| 27    | Telangana         | 7250.96                                   | 3148.38                                   | 930                         | 7440                                            | 2094.00                                   | 2217.57                                   | 660                         | 7761                                            |
| 28    | Karnataka         | 6939.66                                   | 5560.67                                   | 1920                        | 15360                                           | 10846.89                                  | 5898.01                                   | 2140                        | 17284                                           |
| 29    | Goa               | 605.15                                    | 84.94                                     | 29                          | 232                                             | 159.40                                    | 165.43                                    | 91                          | 500                                             |
| 30    | Lakshadweep       | 47.16                                     | 0                                         | 0                           | 0                                               | 90.00                                     | 0.00                                      | 0                           | 0                                               |
| 31    | Kerala            | 3667.38                                   | 2480.84                                   | 1190                        | 9520                                            | 2731.60                                   | 2720.48                                   | 1369                        | 9653                                            |
| 32    | Tamil Nadu        | 7438.88                                   | 6757.82                                   | 2543                        | 20344                                           | 7110.80                                   | 5497.54                                   | 2463                        | 20836                                           |
| 33    | Puducherry        | 141.48                                    | 94.98                                     | 46 133                      | 368 1064                                        | 100.00                                    | 106.37 65.11                              | 65 119                      | 447 293                                         |
| 34    | A&NIslands        | 188.64                                    | 177.24                                    |                             |                                                 | 158.00                                    |                                           |                             |                                                 |
|       | Total             | 166064                                    | 100129.81                                 | 35607                       | 284856                                          | 128620.30                                 | 102006.33                                 | 44340                       | 323362                                          |