Lok Sabha Question No. 908 (UNSTARRED), answered on 2020-09-17
Subject: Establishment of Small Scale Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rajeshbhai Naranbhai Chudasama

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

## LOK SABHA

## UNSTARRED QUESTION NO. 908 TO BE ANSWERED ON 17.09.2020

## ESTABLISHMENT OF SMALL SCALE INDUSTRIES

## 908.     SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a)   whether  Government  proposes  to  establish  Small  Scale  Industries  (SSIs)  to  encourage Khadi in the country; and

(b)  if so, the details thereof including the number of such industries established during the last three years?

## ANSWER

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

(a)&(b): Ministry of Micro, Small and Medium Enterprises (MSME), through Khadi and Village Industries Commission (KVIC), has developed an online application system 'Khadi Institutions  Registration  and  Certification  Seva'  (KIRCS)  for  establishment  of  Small  Scale Industries (SSIs) to encourage Khadi in the country. KIRCS will help in encouraging more number of Khadi Institutions so that entrepreneurs and NGOs interested in production and sales  activities  of  Khadi  can  obtain  'Khadi'  Certificate  and  'Khadi  Mark'  from  KVIC  and start  their  Khadi  activities.  The  institutions  registered  and  having  'Khadi  Mark'  Certificate can get assistance under the following schemes:

i)  Market  Promotion  Development  Assistance  (MPDA)  includes  Market  Development Assistance,  Publicity,  Marketing,  Market  Promotion,  setting  up  of  Marketing  Complexes /Khadi Plazas for expanding the marketing network of Khadi &Village Industries products. Under Modified MDA (MMDA), financial assistance at 30% of Prime Cost  is distributed amongst Producing Institutions (20%), Selling Institutions (10%),  Artisans  (40%) and best performing Khadi Institutions (30%).

- ii) Interest Subsidy Eligibility Certificate (ISEC) Scheme provides credit at concessional rate of interest through Banks as per the requirement of the Khadi institutions. The institutions are required to pay interest of only 4% and any interest charged by banks over 4% are paid by the Government of India through KVIC to the banks.
- iii)  Strengthening  infrastructure  of  weak  Khadi  institutions  and  assistance  for  marketing infrastructure:    This  scheme  provides  need-based  support  towards  the  Khadi  sector  for nursing the sick/problematic institutions for elevation from 'D' to 'C' category as well as those  whose  production,  sales  and  employment  have  been  declining.  Under  this  scheme, financial assistance is provided to existing weak Khadi Institutions for strengthening of their infrastructure and for renovation of khadi sales outlets.

- iv)  Workshed  Scheme  for  Khadi  Artisans  provides  financial  assistance  to  khadi  artisans belonging to BPL Category for construction of worksheds. The objective of the scheme is to provide  better  workplace  for  spinners  and  weavers,  providing  more  working  space  and storage  for  housing  slivers,  raw  materials,  implements,  etc.  and  improving  efficiency  and productivity of the spinners through electricity connections for lighting.

Assistance for construction of worksheds is  provided through the  Khadi Institutions with which the khadi artisans are associated and the quantum of assistance is as under:

| Component                                                             | Area per unit               | Amount of Assistance                                                                                                                                                            |
|-----------------------------------------------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Construction of individual workshed                                   | 20 sq. mts. (approximately) | Rs.60,000/- or 75% of the actual cost of the workshed, whichever is less. For North Eastern Region (NER) Rs.60,000/- or 90% of the actual cost of workshed, whichever is less.  |
| Construction of group workshed (min. 5 artisans and max. 15 artisans) | 10 sq. mts. per artisan     | Rs.40,000/- or 75% of the actual cost of the workshed per artisan, whichever is less. For NER Rs.40,000/- or 90% of the actual cost of workshed per artisan, whichever is less. |

- Cost of land will not be the part of the project cost
- Financial assistance will be for the purpose of construction only
- Remaining 25% is to be borne by beneficiary and for group by institution.

The total number of Khadi Institutions (KIs) as on 31.3.2020 is 2737. Number of new KIs registered with KVIC for undertaking Khadi activities during the last three years is as under:

| Year    |   Number of KIs registered |
|---------|----------------------------|
| 2017-18 |                        149 |
| 2018-19 |                        114 |
| 2019-20 |                        104 |

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