Lok Sabha Question No. 1030 (UNSTARRED), answered on 2019-06-27
Subject: Agro Based Industries in Rural Areas
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Naranbhai Bhikhabhai Kachhadiya

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1030 TO BE ANSWERED ON 27.06.2019

## AGRO BASED INDUSTRIES IN RURAL AREAS

## 1030.   SHRI NARANBHAI KACHHADIYA:

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

- (a) whether the Government has set up/planned to set up any agro industries in rural areas of the country;
- (b) if so, the details of the amount allocated for the said industries during the last three years and the current year, State/ UT and year-wise; and
- (c) the other steps taken by the Government to encourage the agro based industries in rural areas?

## ANSWER

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

(a)&(b): Ministry  of  MSME  is  implementing  the  following  schemes  through  Khadi  and Village Industries Commission (KVIC) and Coir Board to set-up agro industries in rural areas of the country:

## I. Schemes being implemented by the Ministry:

- i) 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.
2. ii)  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.

## II. Scheme being implemented by Khadi and Village Industries Commission (KVIC):

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 :

## III. Schemes being implemented by 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)
2. Coir Industry Technology Upgradation Scheme (CITUS)
3. Export Market Promotion (EMP)
4. Domestic Market Promotion (DMP)
5. Trade and Industry Related Functional Support Services (TIRFSS)
6. Welfare Measures (Group Personal Accident Insurance Scheme)
7. Plan (Science & Technology)

State-wise details of Margin Money allocated and utilized, job opportunities created and number of  units  set  up  under  PMEGP  Scheme  during  the  last  three  years  and  current  year  is placed  at  Annexure-I.  State/UT-wise  subsidy  released  and  employment  generated  underCoir Board schemesduring the last three years and current year is placed at Annexure-II.

(c): The other steps taken by the Government to promote agro-based cottage industries through KVIC is placed at Annexure-III.

* * *

## Annexure-I Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 1030 for

## answer on 27.06.2019

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. No.   |                   | 2016-17                                  | 2016-17                                   | 2016-17                     | 2016-17                                         | 2017-18                                   | 2017-18                                   | 2017-18                     | 2017-18                                         |
|-----------|-------------------|------------------------------------------|-------------------------------------------|-----------------------------|-------------------------------------------------|-------------------------------------------|-------------------------------------------|-----------------------------|-------------------------------------------------|
| Sl. 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 Pradesh    | 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                                   | 4030.21                                   | 1190                        | 9520                                            |
| 28        | Karnataka         | 4941.62                                  | 11609.56                                  | 3575                        | 30286                                           | 4462.97                                   | 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                                     |                             |                                                 | 100.00                                    |                                           | 65                          |                                                 |
| 34    | A&N Islands       | 188.64                                    | 177.24                                    | 46 133                      | 368 1064                                        | 158.00                                    | 106.37 65.11                              | 119                         | 447 293                                         |
|       | Total             | 166064                                    | 100129.8 1                                | 35607                       | 284856                                          | 128620.30                                 | 102006.3 3                                | 44340                       | 323362                                          |

## Annexure-II referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 1030 for answer on 27.06.2019

## State-wise details of Subsidy released under MCY#

(Rs. in lakhs)

| Sl. No.   | State       | 2016-17   | 2017-18   | 2018-19   | 2019-20* (up to 31.5.2019)   |
|-----------|-------------|-----------|-----------|-----------|------------------------------|
| 1         | Tamil Nadu  | -         | -         | -         | -                            |
| 2         | Kerala      | 2.66      | 3.19      | -         | -                            |
| 3         | West Bengal | -         | -         | -         | -                            |
|           | Total       | 2.66      | 3.19      | -         | -                            |

# MCY has been merged with PMEGP w.e.f. FY 2018-19

## State-wise details of Subsidy released under DPI/CITUS @

(Rs.in Lakhs)

| Sl. No.   | State         | 2016-17   | 2017-18   | 2018-19   | 2019-20* (up to 31.5.2019)   |
|-----------|---------------|-----------|-----------|-----------|------------------------------|
| 1         | Tamil Nadu    | 72.00     | 177.45    | 7.98**    | -                            |
| 2         | Karnataka     | -         | 15.73     | -         | -                            |
| 3         | Gujarat       | -         | -         | -         | -                            |
| 4         | AP &Telangana | -         | 8.36      | -         | -                            |
| 5         | Odisha        | -         | 5.00      | -         | -                            |
| 6         | Kerala        | -         | 8.99      | -         | -                            |
|           | Total         | 72.00     | 215.53    | 7.98      | -                            |

@DPI has been replaced with CITUS w.e.f. FY 2018-19 **under DPI

## State-wise details of Subsidy released under CUY

(Rs.in crores)

| Sl.No.   | State/UT       |   2016-17 |   2017-18 |   2018-19 | 2019-20* (up to 31.5.2019)   |
|----------|----------------|-----------|-----------|-----------|------------------------------|
| 1        | Kerala         |      1.79 |      1.45 |      0.57 | 0.22                         |
| 2        | Tamil Nadu     |      5.4  |      3.61 |      4.05 | 0.19                         |
| 3        | A&N Islands    |      0.08 |      0    |      0    | -                            |
| 4        | Karnataka      |      1.64 |      0.94 |      0.2  | -                            |
| 5        | Maharashtra    |      0.15 |      0.14 |      0.02 | 0.10                         |
| 6        | Gujarat        |      0.16 |      0    |      0    | -                            |
| 7        | Andhra Pradesh |      2.29 |      0.33 |      0.62 | 0.10                         |
| 8        | Odisha         |      0.92 |      0.31 |      0.22 | -                            |
| 9        | West Bengal    |      0.31 |      0.23 |      0.07 | -                            |
| 10       | N.E Region     |      0.1  |      0    |      0    | -                            |
|          | Total          |     12.84 |      7.01 |      5.75 | 0.61                         |

## Number of employment opportunities generated in coir industry

| Sl. No.   | State          |   2016-17 |   2017-18 |   2018-19 |   2019-20* (up to 31.5.2019) |
|-----------|----------------|-----------|-----------|-----------|------------------------------|
| 1.        | Kerala         |       861 |      1629 |       487 |                          231 |
| 2.        | Tamil Nadu     |      2383 |      1059 |      1581 |                          310 |
| 3.        | Karnataka      |       432 |       287 |       206 |                            0 |
| 4.        | Andhra Pradesh |       652 |       193 |       785 |                           21 |
| 5.        | Odisha         |       225 |       375 |       286 |                            0 |
| 6.        | Others         |       226 |        89 |        66 |                           35 |
|           | Total          |      4779 |      3632 |      3411 |                          597 |

*Provisional

## Annexure-III referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 1030 for answer on 27.06.2019

To promote agro industries in rural areas of the country, following steps have also been taken by the Government through KVIC:

- i) The handholding support is being provided to the Khadi Institutions and Village  Industries Units  for  availing  financial  assistance  from  the  Banks  under  the  Scheme  namely  Prime Minister's Employment Generation Programme (PMEGP) and SFURTI.
2. ii) To overcome the marketing challenges of Khadi and Village Industries Units, KVIC organize exhibitions at District level, State level and National level and invites beneficiaries to exhibit and  sale  their  products.KVI  Units  are  also  supported  by  the  KVIC  with  the  financial assistance to participate in International Exhibitions.
3. iii) Financial  assistance  being  provided  for  the  renovation/modernization  of  Sales  Outlets  of institutions and State Khadi and Village Industries Boards under the scheme of 'Assistance for Marketing Infrastructure'.
4. iv) To  start  Khadi  Programme  by  new  entrepreneurs,  an  online  portal  for  obtaining  'Khadi Certificate' has been launched. One can apply online for obtaining Khadi Certificate.
- v) In addition, the Ministry aims to promote the cottage industries in the country by encouraging and providing the artisans a platform to showcase their products in various forums such as District  level,  State  level  and  National  level  exhibitions  and  fairs.  The  best  products  and processes are also being supported to be performed outside the country through schemes such as  Market  Promotion  and  Development  Assistance  (MPDA).  Ministry  through  KVIC  also provides  different skill training to the  potential  entrepreneurs  through  the  39  MultiDisciplinary Training Centres (MDTC) of KVIC and RSETIs. The enterprises can also avail benefits of other schemes of the Ministry such as assistance for ISO Certification, Bar Codes, etc.

In addition to the above, the following steps have also been taken under the PMEGP:

- (a) To boost the marketing of KVI products, 10% of financial allocations for trading activities i.e.  business/trading  activities  in  the  form  of  sales  outlets  will  be  permitted  in  NER,  LWE  affected districts and A&N lsland.

(b) Retail outlets/business: Selling Khadi and Village Industry (KVI) products procured from KVI Institutions  certified  by  KVIC  and  products  manufactured  by  PMEGP/SFURTI  units  only permitted under PMEGP across the country.

- (c) Relaxation in per capita investment from Rs.1.00 lakh to Rs.4.50 lakh has been given to A&N Islands and Lakshadweep.

(d) Inclusive  of  Farm/Farm  Linked  activities  and  serving/selling  non-vegetarian  food  at Hotels/Dhabas and Coir activities.

- (e) Beneficiary may opt for covering the project under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme by paying requisite CGTMSE fees.