Lok Sabha Question No. 4216 (UNSTARRED), answered on 2019-07-18
Subject: Modernisation of Cottage Industry in Tamil Nadu
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: P.R. Natarajan

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

## LOK SABHA UNSTARRED QUESTIONNO. 4216 TO BE ANSWERED ON 18.07.2019

## MODERNISATION OF COTTAGE INDUSTRY IN TAMIL NADU

## 4216. SHRI P.R. NATARAJAN:

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

- (a) whether  any  action  has  been  taken  by  the  Union  Government  to  modernise  cottage industry in Tamil Nadu;
- (b) if so, the details thereof, district-wise;
- (c) the  details  of  products  including  food  products  processed  by  cottage  industries  in Tamil Nadu during the last three years; and
- (d) the steps taken by the Government to provide market to cottage industries and to save them from liberal market forces?

## ANSWER

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

(a)&(b): The Ministry of MSME through, Khadi and Village Industries Commission, is implementing the following programmes and schemes for promotion and to modernize Khadi and Village Industries in the country, including the State of Tamil Nadu:

- 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 Board (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.
- 2)  Khadi  Programme:  For  the  development  and  promotion  of  Khadi  Programme,  KVIC implements following Schemes with the support of 34 State/UT Khadi and Village Industries Boards (KVIBs) and 2632 Khadi Institutions:
- i) Market Promotion and Development Assistance (MPDA).
4. ii) Interest Subsidy Eligibility Certificate (ISEC)
5. iii) AamAdmi BimaYojana (erstwhile Jana Shree BimaYojana)
6. iv) Artisans Welfare Fund Trust (AWFT)
- v) Workshed Scheme for Khadi Artisans
8. vi) Strengthening  of  Infrastructure  of  Existing  Weak  Khadi  Institutions  and  Assistance for Marketing Infrastructure.

3) Village Industries Programme is broadly classified under seven groups for the purpose of implementation of its programmes, which are as under:

- i) Agro Based and Food Processing Industry (ABFPI)
2. ii) Forest Based Industry (FBI)
3. iii) Hand Made Paper and Fibre Industry (HMPFI)
4. iv) Mineral Based Industry (MBI)
- v) Polymer and Chemical Based Industry (PCBI)
6. vi) Rural Engineering and Bio-Technology Industry (REBT)
7. vii) Service & Textile Industry

4)  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. '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.

5)  Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI)  has  been  under implementation  since  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.    The  scheme  was  modified  as  revamped SFURTI scheme during 2016-17.

6)  Capacity  Building  (CB):  KVIC  conducts  training  programmes  through  40  departmental and  non-departmental  training  centres.  These  training  centres  imparts  need-based  training under  various  disciplines  viz.  Soap  and  Detergent  making,  Food  Items,  Bakery  Products, Ready Made Garments, Beekeeping, Agaratti making, candle making, motor winding etc.

7) Science & Technology: Research and Development (R&D) is a vital input for stepping up productivity  by  bringing  improvement  in  equipment  and  manufacturing  techniques  of  the craftsman.  KVIC continued to increase the productivity and earnings of artisans and make the  production  process  more  artisan-friendly  by  reducing  drudgery  in  their  work.  Various advance  technologies  have  been  developed  under  Research  &  Development  schemes  of KVIC, which bring a significant difference in the quality, productivity and packaging of the products manufactured by the rural industries sector.

In addition to above,  KVIC  is  also  implementing  following  programmes  for promotion and development of traditional industries viz.  Beekeeping (Honey Mission) and Pottery Development Programme (Kumhar Sashaktikaran Programme):

- i) Bee-Keeping  (Honey  Mission):  KVIC  launched  Honey  (Bee)  Mission  in  July, 2017  for  promoting  Beekeeping  and  generating  employment  in  the  beekeeping potential States of the country.

- ii) Pottery Programme (Kumhar Sashaktikaran): Under this programme KVIC identify the areas  where  clusters  of  traditional  pottery  workers  are  available  and  provide  them training and electric pottery wheels and other tools like blunger, Pug Mill, etc.
- iii)  Mission Solar Charkha: Ministry of MSME has launched the Mission Solar Charkha for implementation of 50 Solar Charkha Clusters across the country with a budget of Rs. 550 crore for the year 2018-19 and 2019-20. The scheme is envisaged to generate direct employment to nearly one lakh persons. Solar Charkha Units have been classified as Village Industries.

District-wise  progress  of  Khadi  and  Village  Industries  programmes  in  Tamil  Nadu State is placed at Annexure-I.

- (c): KVIC does not maintain the details of the products, as the cottage industry is largely in  the  unorganized  sector.  However,  based  on  the  loans  taken  under  PMEGP  by  various Village Industry units, some of the products are as under:
1. Agro Based & Food Processing Industry (ABFPI) includes industries viz. Pulses & Cereals  Processing  Industry,  Gur  &  Khandsari  Industry,  Palmgur  Industry,  Fruit  & Vegetable Processing Industry, Village Oil Industry, etc.
2. Forest  Based  Industry  (FBI)  includes  industries  viz.  Medicinal  Plants  Industry, Beekeeping Industry, Minor Forest Based Industries, etc.
3. Handmade Paper and Fibre Industry (HMPFI) includes industries viz. Handmade Paper Industry, Fibre Industry, etc.
4. Mineral Based Industry (MBI) includes industries viz. Pottery, Lime, Plaster of Paris products, Stone Crushing & Carving etc.
5. Polymer  and  Chemical  Based  Industry  (PCBI)  includes  industries  viz.  Leather Industry, Non-edible Oil & Soap Industry, Detergent Powder, Candle making, Cottage Match Industry, Plastic Industry, etc.
6. Rural Engineering and Bio-Technology Industry (REBTI) includes industries viz. Non-Conventional Energy, Bio-gas plants, Carpentry & Black smithy, Electronics, etc.
7. Service  &  Textile  Industry  (STI)  includes  services  under  Electronic  and  Electrical devise  repairing,  Machine  repairing,  Plumbing  and  other  servicing  works,  Sweater Hosiery, Band aid cloth and other textile products etc.

Group-wise production of Khadi and Village Industries (KVI) products undertaken by the entrepreneurs and units is as under:

(Rs.  in crore)

| Year        | MBI                                                                   | FBI                                                                   | ABFPI                                                                 | PCBI                                                                  | HMPFI                                                                 | REBTI                                                                 | STI                                                                   |    Total |
|-------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|----------|
| 2016-17     | 8269.57                                                               | 3037.38                                                               | 12273.62                                                              | 5121.74                                                               | 1850.92                                                               | 8284.84                                                               | 2272.19                                                               | 41110.3  |
| 2017-18     | 9359.02                                                               | 3234.85                                                               | 13882.20                                                              | 5542.25                                                               | 2138.59                                                               | 9744.54                                                               | 2553.29                                                               | 46454.7  |
| 2018-19 (P) | 11523.65                                                              | 3501.748                                                              | 14360.46                                                              | 7154.662                                                              | 2734.023                                                              | 11568.56                                                              | 5306.38                                                               | 56149.5  |
| 2018-19 (P) | Production of Village Industries under SFURTI, KRDP and Honey Mission | Production of Village Industries under SFURTI, KRDP and Honey Mission | Production of Village Industries under SFURTI, KRDP and Honey Mission | Production of Village Industries under SFURTI, KRDP and Honey Mission | Production of Village Industries under SFURTI, KRDP and Honey Mission | Production of Village Industries under SFURTI, KRDP and Honey Mission | Production of Village Industries under SFURTI, KRDP and Honey Mission |   105.68 |

- (d): The steps taken by the Government for providing market support to the entrepreneurs to sell their products is placed at Annexure-II.

* * *

## Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 4216 for answer on 18.07.2019

District wise projects set up by entrepreneurs and employment generated under PMEGP Scheme in Tamil Nadu State during the last three years

| Sr. No.   | Name of District   | 2016-17         | 2016-17            | 2017-18         | 2017-18            | 2018-19         | 2018-19            |
|-----------|--------------------|-----------------|--------------------|-----------------|--------------------|-----------------|--------------------|
| Sr. No.   | Name of District   | No. of Projects | Employ ment (Nos.) | No. of Projects | Employ ment (Nos.) | No. of Projects | Employ ment (Nos.) |
| 1         | Ariyalur           | 72              | 279                | 84              | 154                | 92.53           | 1232               |
| 2         | Chennai            | 70              | 617                | 45              | 64                 | 121.43          | 512                |
| 3         | Coimbatore         | 137             | 1788               | 123             | 149                | 869.68          | 1192               |
| 4         | Cuddalore          | 83              | 878                | 138             | 215                | 388.72          | 1720               |
| 5         | Dharmapuri         | 72              | 759                | 90              | 114                | 407.23          | 912                |
| 6         | Erode              | 113             | 1035               | 161             | 228                | 1035.55         | 1824               |
| 7         | Kancheepuram       | 80              | 674                | 118             | 134                | 368.69          | 1072               |
| 8         | Karur              | 98              | 1080               | 85              | 176                | 902.52          | 1416               |
| 9         | Krishnagiri        | 99              | 874                | 137             | 161                | 493.63          | 1280               |
| 10        | Nagapattinam       | 117             | 836                | 126             | 145                | 355.45          | 1160               |
| 11        | Namakkal           | 94              | 976                | 108             | 156                | 816.86          | 1248               |
| 12        | Nilgiris           | 30              | 224                | 35              | 49                 | 84.79           | 392                |
| 13        | Perambalur         | 73              | 466                | 98              | 77                 | 121.16          | 616                |
| 14        | Salem              | 115             | 1199               | 188             | 316                | 1167.65         | 2528               |
| 15        | Thanjavur          | 121             | 549                | 154             | 201                | 308.35          | 1608               |
| 16        | Thiruchirapalli    | 79              | 606                | 71              | 83                 | 216.23          | 664                |
| 17        | Thiruvallore       | 85              | 694                | 111             | 128                | 320.60          | 1024               |
| 18        | Thiruvarur         | 83              | 552                | 110             | 157                | 326.92          | 1256               |
| 19        | Tiruvannamalai     | 77              | 683                | 56              | 163                | 561.71          | 1304               |
| 20        | Tirupur            | 78              | 843                | 112             | 130                | 792.57          | 1040               |
| 21        | Vellore            | 132             | 1519               | 135             | 281                | 789.10          | 2248               |
| 22        | Villupuram         | 120             | 1502               | 123             | 113                | 329.23          | 904                |
| 23        | Dindugal           | 57              | 478                | 56              | 43                 | 128.82          | 344                |
| 24        | Kanyakumari        | 94              | 755                | 72              | 95                 | 198.12          | 760                |
| 25        | Madurai            | 58              | 475                | 87              | 85                 | 189.29          | 680                |
| 26        | Pudukottai         | 77              | 564                | 96              | 112                | 184.42          | 896                |
| 27        | Ramanathapuram     | 89              | 598                | 246             | 326                | 126.89          | 2608               |
| 28        | Sivagangai         | 33              | 251                | 48              | 102                | 159.06          | 816                |
| 29        | Theni              | 77              | 535                | 80              | 66                 | 120.49          | 528                |
| 30        | Thirunelveli       | 74              | 654                | 287             | 271                | 294.05          | 2168               |
| 31        | Tuticorin          | 36              | 303                | 203             | 150                | 145.80          | 1200               |
| 32        | Virudhunagar       | 49              | 376                | 85              | 58                 | 125.76          | 464                |
|           | Total              | 2672            | 23620              | 3668            | 29344              | 4702            | 37616              |

| S. No   | Name of the District   |   No. of Institutions under KRDP |
|---------|------------------------|----------------------------------|
| 1       | Tirupur                |                               10 |
| 2       | Coimbatore             |                                4 |
| 3       | Thanjavur              |                                2 |
| 4       | Vellore                |                                2 |
| 5       | Tiruchirappalli        |                                1 |
| 6       | Erode                  |                                1 |
| 7       | Karur                  |                                1 |
| 8       | Cuddalore              |                                1 |
| 9       | Tiruvannamalai         |                                1 |
| 10      | Kanchipuram            |                                1 |
| 11      | Nilgiri                |                                1 |
| 12      | Madurai                |                                2 |
| 13      | Thirunelveli           |                                2 |
| 14      | Tuticorin              |                                2 |
| 15      | Virudhunagar           |                                2 |
| 16      | Kanyakumari            |                                1 |
|         | Total                  |                               34 |

## District-wise total Sales Outlets Renovated Under KRDP, SFURTI & Assistance for Marketing Infrastructure Schemes

| Sr. No   | Name of the District   | No. of Sales outlets renovated under KRDP.   | No. of Sales outlets renovated under SFURTI.   | No. of Sales outlets renovated under Assistance for Marketing Infrastructure scheme   |
|----------|------------------------|----------------------------------------------|------------------------------------------------|---------------------------------------------------------------------------------------|
| 1        | Tirupur                | 9                                            | 1                                              | -                                                                                     |
| 2        | Coimbatore             | 5                                            | -                                              | 1                                                                                     |
| 3        | Thanjavur              | 1                                            | -                                              | -                                                                                     |
| 4        | Vellore                | 3                                            | -                                              | 1                                                                                     |
| 5        | Ariyalur               | 1                                            | -                                              | -                                                                                     |
| 6        | Erode                  | 2                                            | -                                              | -                                                                                     |
| 7        | Karur                  | 1                                            | 1                                              | -                                                                                     |
| 8        | Tiruvannamalai         | 1                                            | -                                              | -                                                                                     |
| 9        | Kanchipuram            | 1                                            | -                                              | -                                                                                     |
| 10       | Namakkal               | 1                                            | -                                              | -                                                                                     |
| 11       | Nagapattinam           | 1                                            | -                                              | -                                                                                     |
| 12       | Tiruchirappalli        | -                                            | -                                              | 2                                                                                     |
| 13       | Salem                  | -                                            | -                                              | 2                                                                                     |
| 14       | Chennai                | -                                            | -                                              | 1                                                                                     |
| 15       | Cuddalore              | -                                            | -                                              | 1                                                                                     |
| 16       | Madurai                | 2                                            |                                                |                                                                                       |
| 17       | Thirunelveli           | 2                                            |                                                |                                                                                       |
| 18       | Tuticorin              | 2                                            |                                                |                                                                                       |
| 19       | Virudhunagar           | 2                                            |                                                |                                                                                       |
| 20       | Kanyakumari            | 1                                            |                                                |                                                                                       |
|          | Total                  | 35                                           | 2                                              | 8                                                                                     |

## District-wise total Khadi Institutions and Village Industries Clusters assisted under SFURTI Scheme in Tamil Nadu

## Number of Khadi institutions Assisted under SFURTI-2

| Sr. No   | Name of the District   |   No. of Institutions under SFURTI |   Employment provided |
|----------|------------------------|------------------------------------|-----------------------|
| 1        | Tirupur                |                                  1 |                   223 |
| 2        | Karur                  |                                  1 |                   114 |
|          | Total                  |                                  2 |                   337 |

## SFURTI under Village Industries

|   Sr. No | Name of the District   |   No. of Institutions under SFURTI |   Employment provided |
|----------|------------------------|------------------------------------|-----------------------|
|        1 | Salem                  |                                  1 |                   550 |

## District-wise beneficiaries benefitted under Honey Mission during 2018-19

| Sr. No.   | Name of the District   |   No. of Beneficiary |
|-----------|------------------------|----------------------|
| 1         | Tiruvannamalai         |                  150 |
| 2         | Krishnagiri            |                   25 |
| 3         | Kanyakumari            |                  760 |
| 4         | Theni                  |                  250 |
| 5         | Thoothukudi            |                  150 |
| 6         | Tuticorin.             |                   90 |
| 7         | Tirunelveli.           |                  250 |
|           | Total                  |                 1675 |

## District-wise details of Pottery programme in Tamil Nadu State

|                      | 2016-17                | 2016-17      | 2017-18                | 2017-18      | 2018-19                | 2018-19      |
|----------------------|------------------------|--------------|------------------------|--------------|------------------------|--------------|
| Name of the District | No. of potters trained | Employ- ment | No. of potters trained | Employ- ment | No. of potters trained | Employ- ment |
| Villupuram           | 20                     | 24           | -                      | -            | -                      | -            |
| Tiruchirappalli      | 20                     | 23           | -                      | -            | -                      | -            |
| Thanjavur            | -                      | -            | 20                     | 23           | -                      | -            |
| Vellore              | -                      | -            | 20                     | 22           | 200                    | 250          |
| Total                | 40                     | 47           | 40                     | 45           | 200                    | 250          |

## Annexure-II referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 4216 for answer on 18.07.2019

Following  steps  are  being  taken  by  the  Government  for  providing  market  support  to  the entrepreneurs to sell their products:

- i) For marketing of Khadi and Village Industries products produced by Entrepreneurs and Khadi Institutions, KVIC organizes exhibitions at National, State and District level.
2. ii) KVIC provides financial assistance for renovation and modernization of Sales outlets run by the  Khadi  Institutions  and  State  Khadi  and  Village  Industries  Boards  (KVIBs)  and Departmental Sales Outlets (DSOs) of  KVIC.
3. iii) Signed MOU with NIFT for design development and developing Khadi fashion garments and to promote Khadi as a fashion fabric of India.
4. iv) KVIC  invited  Textile  Giants  for  marketing  convergence  and  signed  MoUs  with Corporates like Raymond, Arvind Mills, Aditya Birla Fashion and Retail Ltd. (ABFRL) for developing and promoting sale of Khadi.
- v) Khadi fabric and other village industries products supplied to PMO, Air India, Defense Ministry, Ministry of Health, Department of Post, Indian Oil Corporation (IOC), Oil & Natural  Gas  Corporation  Limited  (ONGC),  Rural  Electrification  Corporation  (REC), Banks,  JK  Cement  Ltd,  Grandhi  Mallikarjuna  Rao  (GMR)  group,  and  other  Govt. departments & PSUs.
6. vi) Buyer-Seller meetings are organized by KVIC.