Lok Sabha Question No. 2253 (UNSTARRED), answered on 2018-12-24
Subject: Establishment of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BALABHADRA MAJHI

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTIONNO. 2253 TO BE ANSWERED ON 24.12.2018

## ESTABLISHMENT OF MSMEs

## 2253.       SHRI BALABHADRA MAJHI:

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

- (a) whether the  Government proposes  to  establish  small  scale  industries  to encourage Khadi in the country; and
- (b) if so, the details thereof including the number  of  such  industries established during each of the last three years, State/ UT-wise?

## ANSWER

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

(a)&(b): Ministry of Micro, Small and Medium Enterprises through Khadi and Village  Industries  Commission  (KVIC)  has  been  establishing  micro enterprises to encourage Khadi in the country through various schemes, such as:

- i)  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.
2. ii)  Scheme of Fund for Regeneration of Traditional Industries (SFURTI) from 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.

- iii) Market Promotion Development Assistance (MPDA) - A unified scheme by merging  Market  Development  Assistance,  Publicity,  Marketing  and  Market Promotion. A new component of 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%).
- iv) 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 has 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.
- v)  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%, any interest charged by banks over 4% will  be paid  by  the  Government  of  India  through KVIC to the banks.
- vi) Workshed Scheme for Khadi Artisans was introduced in 2008-09 to provide financial assistance for construction of workshed to khadi artisans belonging to BPL category through the khadi institutions with which the khadi artisans are associated. This  empowers  khadi  spinners  and  weavers  to  chart  out  a sustainable path for growth, income generation and better work environment.
- vii)  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 elevated from 'D' to 'C' category as  well  as  those  whose  production,  sales  and  employment  have been  declining  while  they  have  potential  to  attain  normalcy  and  to  support creation  of  marketing  infrastructure  in  other  identified  outlets.  Under  this scheme, financial assistance is provided to existing weak Khadi institutions for strengthening of their infrastructure and for renovation of selected khadi sales outlets.

In addition to the above, KVIC launched an exclusive online portal called 'Khadi  Institutions  Registration  and  Certification  Sewa'  (KIRCS)  for  filing application for registrations of new Khadi units by entrepreneurs and institutions  to  undertake  Khadi  activities.  The  Khadi  programme  is  being implemented by 2518 Khadi Institutions all over the country

371 number of 'Khadi Certificates' have been issued to new Khadi Institutions to undertake Khadi programme during the last three years, the State-wise details of which is placed at Annexure-I.

Number  of  micro  units  set  up  by  entrepreneurs  under  the  PMEGP  Scheme during the last three years is placed at Annexure-II.

* * *

Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 2253 for answer on 24.12.2018

State-wise details of new Khadi Certificates issued during 2015-16, 2016-17 & 2017-18

| Sl. No.   | Name of the state   |   Cumulative total of 3 years |
|-----------|---------------------|-------------------------------|
| 1         | Uttar Pradesh       |                            98 |
| 2         | Uttarakhand         |                            27 |
| 3         | Raipur              |                             3 |
| 4         | West Bengal         |                            84 |
| 5         | Odisha              |                            19 |
| 6         | Bihar               |                            13 |
| 7         | Jharkhand           |                             3 |
| 8         | Andhra Pradesh      |                            53 |
| 9         | Karnataka           |                            10 |
| 10        | Telangana           |                             4 |
| 11        | Tamil Nadu          |                             0 |
| 12        | Kerala              |                             0 |
| 13        | Jammu &Kashmir      |                            10 |
| 14        | Haryana             |                            18 |
| 15        | Rajasthan           |                             2 |
| 16        | Punjab              |                             4 |
| 17        | Rajasthan           |                             2 |
| 18        | Gujarat             |                            16 |
| 19        | Maharashtra         |                             5 |
| 20        | Assam               |                             0 |
|           | Total               |                           371 |

Annexure-II referred to  in  reply  to  part  (a)&(b)  of  the  Lok  Sabha  Unstarred  Question  No. 2253 for answer on 24.12.2018

Year-wise and State-wise number of units set up under PMEGP Scheme during 2015-16, 2016-17 & 2017-18

| Sl.No.   | State/UT          |   2015-16 |   2016-17 |   2017-18 |
|----------|-------------------|-----------|-----------|-----------|
| 1        | Jammu& Kashmir    |      2207 |      1492 |      3753 |
| 2        | Himachal Pradesh  |      1077 |       941 |       886 |
| 3        | Punjab            |       966 |      1266 |      1520 |
| 4        | UT Chandigarh     |        43 |        47 |        45 |
| 5        | Uttarakhand       |      1136 |      1345 |      1613 |
| 6        | Haryana           |      1248 |      1377 |      1718 |
| 7        | Delhi             |       256 |       119 |       115 |
| 8        | Rajasthan         |      1988 |      1749 |      1577 |
| 9        | Uttar Pradesh     |      4365 |      4074 |      5432 |
| 10       | Bihar             |      2430 |      3234 |      2307 |
| 11       | Sikkim            |       110 |        27 |        37 |
| 12       | Arunachal Pradesh |        35 |       301 |       209 |
| 13       | Nagaland          |       623 |      1018 |       930 |
| 14       | Manipur           |       685 |      1265 |       600 |
| 15       | Mizoram           |      1134 |       425 |       249 |
| 16       | Tripura           |       642 |      2297 |      1116 |
| 17       | Meghalaya         |       603 |       329 |        75 |
| 18       | Assam             |      3483 |      6028 |      2282 |
| 19       | West Bengal       |      1873 |      3528 |      1366 |
| 20       | Jharkhand         |      1839 |      1300 |      1111 |
| 21       | Odisha            |      2876 |      3029 |      2399 |
| 22       | Chhattisgarh      |      1277 |      1598 |      1463 |
| 23       | Madhya Pradesh    |      1979 |      1940 |      1804 |
| 24       | Gujarat*          |      1419 |      1386 |      1876 |
| 25       | Maharashtra**     |      2497 |      2325 |      3329 |
| 26       | Andhra Pradesh    |       642 |      1357 |      1527 |
| 27       | Telangana         |       660 |       664 |      1190 |
| 28       | Karnataka         |      2140 |      3575 |      2115 |
| 29       | Goa               |        91 |        90 |        50 |
| 30       | Lakshadweep       |         0 |        00 |        00 |
| 31       | Kerala            |      1369 |      1584 |      1347 |
| 32       | Tamil Nadu        |      2463 |      2941 |      4095 |
| 33       | Puducherry        |        65 |        66 |        44 |
| 34       | A&N Islands       |       119 |       195 |       218 |
| Total    | Total             |     44340 |     52912 |     48398 |