Lok Sabha Question No. 2249 (UNSTARRED), answered on 2019-07-04
Subject: Schemes for Improving Quality of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sukhbir Singh Jaunapuria

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2249 TO BE ANSWERED ON 04.07.2019

## SCHEMES FOR IMPROVING QUALITY OF KHADI PRODUCTS

## 2249.         SHRI SUKHBIR SINGH JAUNAPURIA:

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

- (a) the details of the schemes being implemented by the Government for improving the quality of Khadi products produced by Khadi and Village Industries Commission;
- (b) whether the Government has provided any financial assistance for modernisation and study of various Khadi projects; and
- (c) if so, the details thereof?

## ANSWER

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

- (a): Government  of  India  has  notified  'Khadi  Mark'  to  ensure  genuineness  of  Khadi. Khadi and Village Industries Commission (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. Tie up with NIFT, etc for bringing out innovative and export quality product designs has also been undertaken.

In addition to the above, the following schemes/programmes are being implemented by the Ministry of MSME all over the country through KVIC for improving the quality of Khadi products produced by KVIC:

## i) Khadi Grant:

1.    Strengthening  Infrastructure  of  existing  Weak  Khadi  Institutions  and  Assistance  for Marketing Infrastructure provides for renovation of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions
2.    Workshed  Scheme  for  Khadi  Artisans  for  providing  assistance  for  construction  of worksheds.
3. ii)  Market  Promotion  Development  Assistance  (MPDA)  -  A  unified  scheme  by  merging Market  Development  Assistance,  Publicity,  Marketing  and  Market  Promotion.    A  new component for Infrastructure namely setting up of Marketing Complexes /Khadi Plazas has been added to expand the marketing network of Khadi &Village Industries products. Under the  Modified  MDA  (MMDA) financial  assistance  at  30%  of  the  Prime  Cost  is  distributed amongst  Producing  Institutions  (20%),  Selling  Institutions  (10%),  Artisans  (40%).    The remaining  amount  is  to  be  given  to  best  performing  Khadi  Institutions  selected  through  a transparent scorecard.
4. iii) 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.

- 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, (i) Direct Reform Assistance to 400 Khadi Institutions & (iii) Implementation of a well-knit MIS.
- v)  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.
- vi) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)is being implemented  from  2005-06  for  making  Khadi,  Village  Industries  &  Coir  Traditional Industries more productive and competitive by organizing these 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.

The Cabinet Committee on Economic Affairs (CCEA) has recently approved Rozgar Yukt Gaon for the Khadi sector.  This would involve enterprise driven business partner to the entire production and sales of Khadi.

Details of funds utilized under Workshed Scheme, MPDA, ISEC, KRDP and SFURTI for the last three years are as follows:

(Rs. in lakh)

|   Sl. No. | Scheme   | 2016-17   | 2017-18         | 2018-19 (Provisional)   |
|-----------|----------|-----------|-----------------|-------------------------|
|         1 | 32525.86 | 17259.71  | 24102.09        | MPDA(MMDA)              |
|         2 |          |           | 6434.42 3426.31 | ISEC 3958.60            |
|         3 |          | 2126.80   | 1499.60 447.10  | Workshed                |
|         4 | KRDP     | 974.35    | 60.00 5973.65   |                         |
|         5 |          | 0.00      | 684.63 1324.35  | SFURTI                  |

- (b): No Sir.
- (c): Does not arise.