Lok Sabha Question No. 901 (UNSTARRED), answered on 2018-07-23
Subject: Scheme for Forest Based Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: SUNIL KUMAR SINGH

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

## LOK SABHA UNSTARRED QUESTIONNO. 901 TO BE ANSWERED ON 23.07.2018

## SCHEME FOR FOREST BASED INDUSTRY

## 901. SHRI SUNIL KUMAR SINGH:

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

- (a) whether the Government is running any scheme aimed at promoting forest produce based industry and if so, the details thereof;
- (b) whether  the  Government  is  making  any  efforts  to  promote  cottage  industry  to  boost  the economy in rural areas and if so, the details thereof including any scheme being implemented in this regard;
- (c) whether  the  Government  has  any  scheme  to  provide/proposes  to  provide  employment through cottage industries in the backward & tribal dominated areas of Jharkhand; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a): Khadi and Village Industries Commission (KVIC) is implementing Honey (Beekeeping) Mission under forest based industry group of Village Industries with the objective of enhancing income to farmers/beekeepers and tribal people. Under this programme, training is given to the persons and after training, 10 bee boxes are provided to each trained artisan.

During  the  year  2018-19,  a  provision  of  Rs.  63.35  crore  has  been  made  to  train  and  provide 1,31,000  bee boxes to 13,100 persons.

The unemployed persons can get benefit of Prime Minister's Employment Generation Programme (PMEGP) to establish their own units including units under forest based group of industries viz. Fibre products manufacturing, handmade paper products, cane and bamboo etc.

(b) to (d): To provide employment through cottage industry and to boost the economy in rural areas of the country, including the backward and tribal dominated areas of Jharkhand, Khadi and Village Industries Commission (KVIC) and Coir Board are implementing the following schemes:

- 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.

- 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)  A  Scheme  for  Promoting  Innovation,  Rural  Industry  and  Entrepreneurship  (ASPIRE)  was launched on 18.3.2015 to promote  Innovation and Rural Entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation.

## I. Khadi and Village Industries Commission (KVIC):

i)  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%).

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%, any interest charged by banks over 4% will be paid by the Government of India through KVIC to the banks.

iii)  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.

- iv) 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.
- v) 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.

## II.     Coir Board:

Coir Board is implementing the Coir Vikas Yojana to cater to the multiple developmental needs of coir industry.  Interventions under the following components of the Scheme are taken up during the period from 2017-18 to 2019-20.

1. Skill Upgradation and Mahila Coir Yojana (MCY):  Development of skilled manpower in coir industry  in  different  facets  of  coir  production  and  processing  through  appropriate  training programmes,  seminars,  workshops,  awareness  programmes,  exposure  visits  etc.    is  the  major objective  under  Skill  Upgradation  and  Mahila  Coir  Yojana  (MCY).  Only  trainings  to  the unemployed  women  will  be  provided  under  Mahila  Coir  Yojana.  EDP,  National  Seminar, Awareness  programme,  Workshop,  Exposure  Tour  may  also  be  provided  under  Mahila  Coir Yojana.  The  financial  assistance  for  procurement  of  equipments/machineries  may  be  obtained under the PMEGP scheme by the trained women for setting up coir units. Priority will be given to the trained women under PMEGP. Under skill upgradation and Mahila Coir Yojana honorarium shall be kept as Rs.15, 000/-p.m. for trainer and Rs.3000/- p.m. for trainee subject to the norms of NSQF compliance.

2. Export Market Promotion (EMP): This programme is aimed towards developing and improving the export performance of Indian Coir Sector through various export market promotion activities such as participation  in Buyer Seller Meet, sponsoring delegations, participation in seminars and conferences abroad, organising participation in international fairs, extending financial assistance to  micro,  small  and  medium  enterprises  and  exporters,  presenting  Coir  Industry  Awards  on  an annual  basis  to  recognize  the  outstanding  performance  in  the  areas  of  export,  domestic  trade, R&D, best performing units and co-operatives etc.

3.  Domestic  Market  Promotion  (DMP):  This  plan  programme  envisages  the  development  of domestic  market  for  coir  and  coir  products  through  appropriate  measures  for  popularization including publicity and propaganda. Participation in fairs/exhibitions organized by other agencies and organizing exclusive fairs for coir and coir goods within the country are also taken up as steps to  popularize  the  technologies,  schemes  and  services  and  to  increase  the  awareness  of  coir products  and  to  enhance  its  consumption  inside  the  country.  The  grant  provided  under  Market Development Assistance to State supported organizations and co-operatives to the tune of 10% of their average annual sales turnover of coir products for enlarging marketing network, improving the quality standards, product development / diversification, innovative marketing etc.  The grant of  MDA which is shared on 1:1 basis by the Central Government through Coir  Board  and the States / UTs concerned is a major activity under this component of the Scheme.

Apart  from  the  above,  national  level  exhibitions  are  organized  and  the  Khadi  and  V.I. Institutions and entrepreneurs can sell their products through approximately 8058 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.

During  the  year  2017-18,  under  Prime  Minister's  Employment  Generation  Programme (PMEGP), 1111 beneficiaries benefitted in Jharkhand State. PMEGP Scheme targets for the year 2018-19 is placed at Annexure-I.

## Annexure-I referred to in reply to part (b)to(d) of the Lok Sabha Unstarred Question No. 901 for answer on 23.07.2018

## Target under PMEGP for the year 2018-19

(Rs. in lakhs)

| Sr. No.   | State/UT          | TARGET   | TARGET       | TARGET     |
|-----------|-------------------|----------|--------------|------------|
| Sr. No.   | State/UT          | Projects | Margin Money | Employment |
| 1         | Jammu &Kashmir    | 1898     | 4745.12      | 15184      |
| 2         | Himachal Pradesh  | 1085     | 2711.40      | 8676       |
| 3         | Punjab            | 1847     | 4617.17      | 14775      |
| 4         | U.T. Chandigarh   | 94       | 94.32        | 755        |
| 5         | Haryana           | 1866     | 4664.10      | 14925      |
| 6         | Delhi             | 113      | 282.96       | 905        |
| 7         | Rajasthan         | 3097     | 7743.65      | 24776      |
| 8         | Uttarakhand       | 1190     | 2975.40      | 9521       |
| 9         | Uttar Pradesh     | 7669     | 19171.59     | 61352      |
| 10        | Chhattisgarh      | 2536     | 6339.11      | 20285      |
| 11        | Madhya Pradesh    | 4781     | 11952.90     | 38249      |
| 12        | Sikkim            | 75       | 188.64       | 604        |
| 13        | Arunachal Pradesh | 189      | 471.60       | 1509       |
| 14        | Nagaland          | 1130     | 2825.50      | 9042       |
| 15        | Manipur           | 1018     | 2544.19      | 8141       |
| 16        | Mizoram           | 818      | 2045.45      | 6545       |
| 17        | Tripura           | 786      | 1965.99      | 6291       |
| 18        | Meghalaya         | 1061     | 2653.70      | 8492       |
| 19        | Assam             | 4203     | 10507.70     | 33624      |
| 20        | Bihar             | 4348     | 10869.49     | 34782      |
| 21        | West Bengal       | 2569     | 6423.74      | 20556      |
| 22        | Jharkhand         | 2477     | 6193.49      | 19819      |
| 23        | Odisha            | 3088     | 7719.19      | 24701      |
| 24        | A &NIslands       | 189      | 188.64       | 1509       |
| 25        | Gujarat*          | 2993     | 7501.95      | 24006      |
| 26        | Maharashtra**     | 3543     | 8833.60      | 28274      |
| 27        | Goa               | 242      | 605.15       | 1936       |
| 28        | Andhra Pradesh    | 1497     | 3742.74      | 11974      |
| 29        | Telangana         | 2900     | 7250.96      | 23203      |
| 30        | Karnataka         | 2776     | 6939.66      | 22207      |
| 31        | Lakshadweep       | 47       | 47.16        | 377        |
| 32        | Kerala            | 1467     | 3667.38      | 11736      |
| 33        | Tamil Nadu        | 2976     | 7438.88      | 23808      |
| 34        | Puducherry        | 141      | 141.48       | 1132       |
| TOTAL     |                   | 66709    | 166064.00    | 533671     |