Lok Sabha Question No. 1810 (UNSTARRED), answered on 2019-11-28
Subject: Production of Khadi Items
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Bhanu Pratap Singh Verma

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

## LOK SABHA UNSTARRED QUESTION NO. 1810 TO BE ANSWERED ON 28.11.2019

## PRODUCTION OF KHADI ITEMS

## 1810.      SHRI BHANU PRATAP SINGH VERMA:

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

- (a) the  total  production  of  Khadi  items  recorded  during  each  of  the  last  three  years, State/UT-wise;
- (b) the details of the new schemes formulated for development of Khadi udyog;
- (c) whether the Khadi products are sold in world market; and
- (d) if  so,  the  way  by  which  assistance  is  provided  by  the  Government  for  sale  of  Khadi products in world market?

## ANSWER

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

- (a): The total  production of Khadi (including Polyvastra  and  Solarvastra)  during the last three years is as follows:

| Particular                                             |   2016-17 |   2017-18 |   (Rs. in crore) 2018-19 (Provisional) |
|--------------------------------------------------------|-----------|-----------|----------------------------------------|
| Production of Khadi (incl. Polyvastra and Solarvastra) |   1520.83 |   1626.66 |                                 1963.3 |

State/UT-wise production of Khadi items during each of the last three years is placed at Annexure-I.

- (b): The  details of the new schemes formulated for development of Khadi  udyog  are as follows:
1. Solar Charkha Mission: The scheme envisages setting up of 'Solar Charkha Clusters', which  would  mean  a  focal  village  and  other  surrounding  villages  in  a  radius  of  8  to  10 kilometres.    Further,  such  a  Cluster  will  have  200  to  2042  beneficiaries,  viz.,  Spinners, Weavers, Stitchers and other Skilled Artisans.
2. Khadi  and  Gramodyog Vikas Yojana ( KGVY ): By  merging  all the existing schemes/sub schemes/ components  under Khadi Grant and Village Industries Grant umbrellas  with  new  components  into  envisaged  sub  schemes  of  'Khadi  Vikas  Yojana' (KVY) and 'Gramodyog Vikas Yojana' (GVY).

The 'Khadi  Vikas  Yojana'  (KVY)  includes two  new  components  such  as  (1) Rozgar Yukt Gaon, (2) Design House (DH) and existing schemes like (3) Market Promotion Development  Programme  (MPDA),  (4)  Interest  Subsidy  Eligibility  Certificate  (ISEC),  (5) Khadi  Reforms  Development  Programme  (KRDP),  (6)  Workshed  Scheme  for  Khadi Artisans, (7) Strengthening infrastructure of existing  weak Khadi institutions and  assistance for marketing infrastructure & (8) Khadi (S&T).

In  addition  to  the  above  new  schemes,  the  Ministry  is  also  implementing  PMEGP  and SFURTI schemes for the development of Khadi udyog:

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 Boards (KVIBs) and District Industries Centres (DICs). 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. The scheme is being implemented since 2008-09.
2. Scheme of Fund for Regeneration of Traditional Industries ( SFURTI ) has been under implementation  for  making  Traditional  Industries  more  productive,  market  driven  and competitive by organizing the Traditional Industries and artisans into clusters.
3. (c): Yes Sir.
4. (d): The export of Khadi products is done by the Khadi and Village Industries Institutions and  units directly or through  merchant exporters.  KVIC  do not export directly.  Year-wise export of Khadi products for the last three years is as follows:

(Rs. in lakh)

| Particular                                             |   2016-17 |   2017-18 |   2018-19 (Provisional) |
|--------------------------------------------------------|-----------|-----------|-------------------------|
| Exports of Khadi Products including readymade garments |    301.47 |    186.38 |                     185 |

The  steps/initiatives  taken  by  the  Government  for  promotion  and  export  of  Khadi products are given in the Annexure-II .

## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 1810 for answer on 28.11.2019

State-wise Khadi Production (including Polyvastra and Solar vastra) during last three years

(Rs. in l akh)

| Sr. No.   | States/ UTs       |   2016-17 |   2017-18 |   2018-19 |
|-----------|-------------------|-----------|-----------|-----------|
| 1         | Jammuand Kashmir  |   7128.73 |   4884.9  |   5298    |
| 2         | HimachalPradesh   |    495.37 |    606.48 |    370.1  |
| 3         | Punjab            |    761.5  |    624.18 |    618.29 |
| 4         | U.T. Chandigarh   |      0.44 |      5.25 |      5.25 |
| 5         | Haryana           |  16163.5  |  13642.9  |  15557.1  |
| 6         | Delhi             |    247.13 |    195.63 |    154    |
| 7         | Rajasthan         |   4136.8  |   5416.57 |   6903.93 |
| 8         | Uttarakhand       |   3202.14 |   2671.13 |   3302.41 |
| 9         | Uttar Pradesh     |  36943.8  |  43912.2  |  52502.1  |
| 10        | Chhattisgarh      |   3887.41 |   4139.88 |   5024.32 |
| 11        | Madhya Pradesh    |   1017.85 |   1721.28 |   2181.28 |
| 12        | Arunachal Pradesh |     17.24 |     15.04 |     16.13 |
| 13        | Nagaland          |    160.62 |    115.71 |     33.21 |
| 14        | Manipur           |     56.96 |     54.65 |     66.34 |
| 15        | Mizoram           |      4.03 |      2.03 |      2.03 |
| 16        | Tripura           |      1.89 |      2.7  |      0.69 |
| 17        | Meghalaya         |     14.97 |     16.8  |     45.5  |
| 18        | Assam             |   1158.85 |   1126.74 |   1239.55 |
| 19        | Bihar             |   2532.55 |   2803.16 |   3186.77 |
| 20        | West Bengal       |  19623.6  |  20657.5  |  24816.3  |
| 21        | Jharkhand         |    577.39 |   1103.47 |   1431    |
| 22        | Orissa            |   1408.67 |   1586.17 |   1408.83 |
| 23        | Gujarat           |  10823.4  |  12913.9  |  15552.2  |
| 24        | Maharashtra       |    404.97 |    556.09 |    634.24 |
| 25        | Andhra Pradesh    |   3194.65 |   3556.73 |   4810.23 |
| 26        | Telangana         |    647.1  |    846.05 |   1156.9  |
| 27        | Karnataka         |  15005    |  16793    |  21975.3  |
| 28        | Kerala            |   7113.8  |   7868.69 |   9272.3  |
| 29        | Tamil Nadu        |  15350.8  |  14765.4  |  18682.7  |
| 30        | Puducherry        |      1.63 |     61.63 |     83.24 |
|           | Total             | 152083    | 162666    | 196330    |

## Annexure-II referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 1810 for answer on 28.11.2019

Following are the initiatives taken for promotion and export of Khadi products:

1. To ensure genuineness of Khadi, 'Khadi Mark' has been notified by Government of India.
2. Ministry of Commerce and  Industry, Govt. of  India  has extended KVIC, the status of Deemed Export  Promotion  Council  (EPC),  for  supporting  promotion  of  Khadi  and  Village  Industries products in international market. 1088 Khadi & Village Industries Institutions and REGP/PMEGP Units have taken its membership to enter the field of export. KVIC through its assisted institutions and units participates in various international exhibitions.
3. Tie  up  arrangement  with  premier  institutions  like  Federation  of  Indian  Export  Organization (FIEO),  World  Trade  Centre  (WTC),  Indian  Trade  Promotion  Organization  (ITPO),  Trade Promotion Council of India etc., for invigorating business opportunities in the overseas market by conducting exhibitions and workshops for Khadi Institutions.
4. Tie up arrangements for bringing out innovative export quality product designs with NIFT, etc.
5. Exhibited/Promoted  Khadi  products  under  an  activity  of  'Global  Khadi'  on  the  celebration  of 150 th Birth Anniversary of Mahatma Gandhi in 57 Indian Embassies/ Missions abroad.
6. For unique identity of 'Khadi', a separate HS code for 22 items of Khadi product has also been requested from the Ministry of Commerce for recognizing the potential of export of KVI products.
7. Participated in International Exhibition in St. Petersburg (Russia) organized by ITPO from 12-14 March, 2019 with ten KVI Institutions/ Units  from Rajasthan, Himachal Pradesh, West Bengal, Karnataka,  Gujarat and Kerala.  The  Exhibition provided  an opportunity and strong platform to showcase quality of KVI products.
8. KVIC  engaged  fashion  designer  of  national  and  international  repute  for  Fashion  Designing  to make Khadi products more competitive and appealing in the domestic as well as overseas market segment.
9. Financial  support  under  International  Cooperation  (IC)  Scheme  of  Ministry  of  MSME  for Technology infusion and/or up-gradation of MSMEs, their modernization and promotion of their exports through participation in international exhibitions/trade fairs etc.
- a. To and Fro economy class air  fare subject to a  maximum of  Rs. 1.50  lakh or actual  fare paid, whichever is lower.
- b. 100% of the space rent subject to a maximum of Rs. 1.00 lakh or actual rent paid, whichever is lower.
- c. US Dollar 150 per day Duty allowance.
10. Assistance  would  be  provided  under  the  MPDA  Scheme  to  the  eligible  Khadi  and  Village Industries  (KVI)  Institutions  for  participation  in  International  Exhibitions/Trade  Fairs  held  in foreign  countries  in  order  to  showcase  KVI  products  to  foreign  countries,  access  international buyers and sellers and forge business alliances, etc.

The eligible items for such participation and the scale of assistance would be as under:

| S. No.   | Eligible items   | Scale of assistance for KVIs                                                                                                                                               |
|----------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)       | Space Rent       | 100% of the space rent subject to a maximum of Rs.1.25 lakh or actual rent paid, whichever is lower (for one representative from each participating enterprise)            |
| ii)      | Air Fare         | 100% of the Economy Class air fare subject to a maximum of Rs.1.00 lakh or actual fare paid, whichever is lower (for one representative fromeach participating enterprise) |

11. Opening  of  sales  outlets  at  domestic  as  well  as  international  airports  like  Visakhapatnam, Lucknow, Ahmedabad and Varanasi.