Lok Sabha Question No. 3985 (UNSTARRED), answered on 2019-12-12
Subject: Promotion/Modernisation of Khadi Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Darshana Vikram Jardosh, Rajeshbhai Naranbhai Chudasama

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3985 TO BE ANSWERED ON 12.12.2019

## PROMOTION/MODERNISATION OF KHADI INDUSTRY

3985.

SHRIMATI DARSHANA VIKRAM JARDOSH: SHRI RAJESHBHAI CHUDASAMA:

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

- (a) the steps taken by the Ministry in association with the various State Governments to promote Khadi textile and modernise the Khadi industry as on date, State-wise;
- (b) the steps taken by the Ministry to promote the export and exporters of Khadi Textiles, State-wise;
- (c) whether the sales, production and job opportunities have been declined in Khadi sector during the last three years;
- (d) if so, the details thereof for the last three years and the reasons therefor; and
- (e) the number of new institutes set up under Khadi and Village Industries Commission during the last three years in various States including in the State of Gujarat?

## ANSWER

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

(a): Ministry  of  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME),  through Khadi and Village Industries Commission (KVIC) is implementing the following components/sub-components of 'Khadi and Gramodyog Vikas Yojana' (KGVY),to promote Khadi textile and modernize Khadi Industry in the country:

- (1) Rozgar Yukt Gaon (RYG) - To give boost and generate employment opportunities in the  villages  through  hand  spun  charkha,  a  new  scheme  'Rozgar  Yukt  Gaon'  has  been launched with an objective to introduce enterprise-led model replacing subsidy-led model in 50 villages with a total cost of Rs. 41.00 crore for the years 2018-19 and 2019-20. As part of the scheme, the artisans will be provided with charkhas, looms, warping units, professional skills and administrative framework support to create 12500 direct and 5765 indirect totalling 18265  employment  opportunities.  Zone-wise  distribution  of  Khadi  Gaons  is  placed  at Annexure-I.
- (2) Khadi Reforms Development Programme (KRDP) was launched in 2009-2010 with an  aim  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.  An amount of Rs.585.46 crore has been released by the  Ministry  to  KVIC  during  the  period  from February  2010  to  31.3.2019.    State/UT-wise number of Khadi Institutions sanctioned Direct Reform Assistance (DRA) by KVIC under KRDP as on 30.11.2019 is placed at Annexure-II.

In  addition  to  the  above,  Ministry  is  also  implementing  the  'Scheme  of  Fund  for Regeneration  of  Traditional  Industries'  (SFURTI)  for  making  Traditional  Industries  more productive,  market  driven  and  competitive  by  organizing  the  Traditional  Industries  and artisans into clusters. The Scheme envisages providing need-based assistance for setting up of Common Facility Centres (CFCs), product development, quality improvement, improved marketing,  training  and  capacity  building  etc.  Under  this  scheme,  traditional  industries clusters including Khadi related clusters are set up.  State/UT-wise number of SFURTI Khadi clusters along with project costs as on 30.11.2019 is placed at Annexure-III.

(b): The  export  of  Khadi  &  Village  Industries  (KVI)  products  is  done  by  the  KVI Institutions  and  units  directly  or  through  merchant  exporters.  Initiatives  taken  by  the Government to  promote  the  export  and  exporters  of  Khadi  Textiles  and  the  details  of  the countries to which Khadi products are exported along with the quantum of Khadi products exported during each of the last three years is placed at Annexure-IV.  State-wise data is not maintained by the KVIC.

(c)&(d): No,  Sir. Progress of Khadi, including Poly Vastra and Solar Vastra, during the last three years shows an increasing trend, which is as follows:

Production, Sales and Employment under Khadi including Poly & Solar Vastra

| Particulars                               |   2016-17 |   2017-18 |   2018-19 (P) |
|-------------------------------------------|-----------|-----------|---------------|
| Production (Rs.in crore)                  |   1520.83 |   1626.66 |       1963.3  |
| Sales (Rs.in crore)                       |   2146.6  |   2510.21 |       3215.12 |
| Employment (cumulative) (in lakh persons) |      4.56 |      4.65 |          4.96 |

P-Provisional

(e): State/UT-wise New Khadi Institutions registered during the period from 2016-17 to 2019-20  (as  on  30.11.2019)  under  Khadi,  all  over  the  country  including  in  the  State  of Gujarat, is placed at Annexure-V.

****

Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 3985 for answer on 12.12.2019

## Zone-wise distribution of Khadi Gaons under Rozgar Yukt Gaon (RYG)

| Zone      |   No. of Gaons |
|-----------|----------------|
| South     |              9 |
| East      |              9 |
| Northeast |              5 |
| Central   |              9 |
| North     |              9 |
| West      |              9 |
| Total     |             50 |

## Annexure-II referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 3985 for answer on 12.12.2019

State/UT-wise number of Khadi Institutions sanctioned Direct Reform Assistance (DRA) under KRDP as on 30.11.2019

| Sl. No.   | Name of the State/UT   |   No. of Khadi Institutions |   Fund Released (Rs. In lakh) |
|-----------|------------------------|-----------------------------|-------------------------------|
| 1.        | Andhra Pradesh         |                          26 |                       1841.1  |
| 2.        | Arunachal Pradesh      |                          01 |                         45.1  |
| 3.        | Assam                  |                          01 |                         82.27 |
| 4.        | Bihar                  |                          22 |                       1484.93 |
| 5.        | Chhattisgarh           |                          10 |                        851.48 |
| 6.        | Gujarat                |                          27 |                       2091.39 |
| 7.        | Haryana                |                          21 |                       1791.4  |
| 8.        | Himachal Pradesh       |                          07 |                        344    |
| 9.        | Jharkhand              |                          13 |                        878.75 |
| 10.       | Karnataka              |                          50 |                       3755.14 |
| 11.       | Kerala                 |                          07 |                        586.61 |
| 12.       | Madhya Pradesh         |                          05 |                        367.74 |
| 13.       | Maharashtra            |                          05 |                        411.54 |
| 14.       | Manipur                |                          04 |                        286.47 |
| 15.       | Meghalaya              |                          01 |                         38.5  |
| 16.       | Odisha                 |                           8 |                        597.24 |
| 17.       | Punjab                 |                          05 |                        295.68 |
| 18.       | Rajasthan              |                          18 |                       1403.29 |
| 19.       | Tamil Nadu             |                          42 |                       3318.59 |
| 20.       | Telangana              |                          02 |                         88.75 |
| 21.       | Uttar Pradesh          |                          87 |                       7043.06 |
| 22.       | Uttarakhand            |                          11 |                        772.4  |
| 23.       | West Bengal            |                          74 |                       5866.38 |
|           | Total                  |                         447 |                      34241.8  |

Annexure-III referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 3985 for answer on 12.12.2019

State/UT-wise details of Khadi Clusters under SFURTI as on 30.11.2019

(Rs. in lakh)

|   Sl. No. | State       | Name of the Cluster                | Name of the Implementing Agency                                                                   | Year of Sanction   |   Project cost |
|-----------|-------------|------------------------------------|---------------------------------------------------------------------------------------------------|--------------------|----------------|
|         1 | Karnataka   | Harihara Khadi Cluster             | Harihara Charakha Mattu Gramodyoga Sahakara Sangha Ltd., Davangere Dist.                          | 2015-16            |         158    |
|         2 | Karnataka   | Sidalghata Khadi Cluster           | Sri Nandi Khadi Gramodyog Sangha, Mallamachanahali, Sidlaghatta Taluk, Chikaballapur Dist.        | 2015-16            |         158.05 |
|         3 | Karnataka   | Hudli Khadi Cluster                | Khadi and Gramodyog Sahakari Utpadak Sangh Ltd., Hudli, Belgaum                                   | 2015-16            |         159.1  |
|         4 | Karnataka   | Bijapur Khadi Cluster              | Karnataka Khadi Gramodyog Sangh, Bijapur                                                          | 2017-18            |         257.62 |
|         5 | Karnataka   | Sandur Khadi Cluster               | Sandur Kushala Kala Kendra, Sandur, Ballari Dt.                                                   | 2019-20            |         461.77 |
|         6 | TamilNadu   | Kangayam Khadi Cluster             | Kangayam Sarvodaya Sangh, 83, Agraham Street, Tirupur Dist., Kangayam(T.N.)                       | 2015-16            |         158    |
|         7 | Jharkhand   | Santhal Pargana Silk Khadi Cluster | Santhal Pragana Gramodyog Samiti, Tower Chowk, Dist. Deoghar                                      | 2016-17            |         182    |
|         8 | West Bengal | Chak Islampur Khadi Cluster        | Chandrakanta Lalitmohan Resham Khadi Samiti, A.C. Road Bye Lane, Post- Khagra, Distt.-Murshidabad | 2016-17            |         237.5  |
|         9 | West Bengal | Chitrashali Khadi Cluster          | Sudha Khadi Bhandar, Kolkata                                                                      | 2018-19            |         179.95 |
|        10 | West Bengal | Bijaypur Silk Khadi Cluster        | Bijaipur Silk Khadi Seva Sanstha, P.O.- Gankar, Dt.- Murshidabad                                  | 2019-20            |         280.81 |

Annexure-IV referred to in reply to part (b) of the Lok Sabha Unstarred Question No.3985 for answer on 12.12.2019

Initiatives/steps taken by the Government to boost the sale of Khadi and to make Khadi an international brand:

1. Assistance  is  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 is as under:

| S. No.   | Eligible items   | Scale of assistance                                                                                                                                                                    |
|----------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)       | Space Rent       | For KVIs - 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         | For KVIs - 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 from each participating enterprise) |

2. Participation  in  International  Trade  Fairs  through  ITPO,  New  Delhi  where  KVI products find wide exposure to International Trade Delegation, Importers, Overseas Buyers, Franchisees, Branded Merchandise Outlets, Retailers, Malls, and Shopping Centres etc.
3. Tie up arrangements-
- i) for bringing out innovative export quality product designs with NIFT.
4. ii) with premier export institutions like Directorate General of Foreign Trade (DGFT), Federation of Indian Export Organization (FIEO), CII and FICCI.
5. iii) with premier institutions like FIEO, World Trade Centre, ITPO, Trade PromotionCouncil  of  India  etc.,  for  invigorating  business  opportunities  in  the overseas market by conducting exhibitions and workshops for Khadi Institutions.Arranging  training  in  Export  Procedure  and  Documentation  for  Export Oriented  Units  (EOUs),  Institutions  and  Entrepreneurs  in  the  KVI  Sector  through these institutions.
4. A MoU was signed between KVIC and Aditya Birla Fashion & Retail Ltd. (ABFRL), Raymond and Arvind Mills for sale of Khadi fabric in country and abroad.
5. KVIC has applied to register 'Khadi' as a word mark and 'Khadi India' as a Trade mark in 27 classes for various products among 45 classes listed out in the IPR Act at National Level as well as has filed an online application for registering 'Khadi' as a trade mark under International Bureau in European Union and other countries under 16 different class.
6. KVIC Exhibiting/Promoting Khadi products under activity of 'Global Khadi' on the eve  of  celebration  of  150 th Birth  Anniversary  of  Mahatma  Gandhi  and  shipped  the  Khadi products to 46 Indian Embassies/Missions abroad.
7. The KVIC is also conducting Export workshops for the benefit of Khadi Institutions.
8. Government  has  issued  Harmonized  System (HS)  code  to  categorize  11  Khadi products in export and separate tariff lines for these have been created. Definition of Khadi also  been  included  in  the  supplementary  notes  of  the  Customs  tariff,  w.e.f.  1.11.2019  on tentative basis. HS code is a unique identity of product ID internationally accepted.

Details of the countries to which Khadi products are exported along with the quantum of Khadi products exported during each of the last three years

(Rs. in Lakh)

| Year      | Khadi products                                          | Exported through export agencies to                               |   Export value |
|-----------|---------------------------------------------------------|-------------------------------------------------------------------|----------------|
| 2016 - 17 | Woollen Khadi, Silk Khadi, Muslin Khadi                 | Korea, Muscat, Oman, Germany, Austria, USA, Japan, France, Sweden |         196.97 |
| 2017 - 18 | Woollen Khadi, Silk Khadi, Muslin Khadi                 | Germany, Australia, South Korea                                   |          77.88 |
| 2018 - 19 | Khadi Fabrics, Khadi Stole, Shawl, Shirting and Suiting | South Korea, Japan, France, Italy, Europe                         |         605.62 |

Annexure-V referred to in reply to part (e) of the Lok Sabha Unstarred Question No.3985 for answer on 12.12.2019

State/UT-wise number of new Khadi Institutions (KIs) registered under Khadi during last three years and current year i.e. 2016-17 to 2019-20 (as on 30.11.2019 )

| Sl. No.   | State/UT         |   No. of new KIs |
|-----------|------------------|------------------|
| 1.        | Andhra Pradesh   |               73 |
| 2.        | Assam            |                2 |
| 3.        | Bihar            |               20 |
| 4.        | Chhattisgarh     |                2 |
| 5.        | Gujarat          |               29 |
| 6.        | Haryana          |               27 |
| 7.        | Himachal Pradesh |                1 |
| 8.        | Jammu &Kashmir   |               14 |
| 9.        | Jharkhand        |                3 |
| 10.       | Karnataka        |               44 |
| 11.       | Kerala           |                2 |
| 12.       | Maharashtra      |                4 |
| 13.       | Orissa           |                9 |
| 14.       | Punjab           |                2 |
| 15.       | Rajasthan        |                9 |
| 16.       | Tamil Nadu       |                2 |
| 17.       | Telangana        |                5 |
| 18.       | Uttar Pradesh    |               72 |
| 19.       | Uttarakhand      |               18 |
| 20.       | West Bengal      |               91 |
|           | Total            |              429 |