Lok Sabha Question No. 2085 (UNSTARRED), answered on 2019-07-04
Subject: Promotion of Traditional Rural Industries
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. 2085 TO BE ANSWERED ON 04.07.2019

## PROMOTION OF TRADITIONAL RURAL INDUSTRIES

## 2085.        SHRI SUKHBIR SINGH JAUNAPURIA:

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

- (a) whether the traditional rural professions like weaving and spinning, blacksmith, carpentry, oil extraction etc. are disappearing fast and the youth are migrating to cities and towns as a result of the same;
- (b) if so, the reaction of the Government thereto;
- (c) whether the Government proposes to check the migration of unemployed youths by creating additional employment opportunities in the MSME Sector; and
- (d) if so, the details thereof?

## ANSWER

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

- (a): There is no such study conducted by the Ministry to prove that due to disappearing of rural professions, youth are migrating to cities and towns.
- (b): Does not arise.
- (c)&(d): Ministry  of  MSME  is  implementing  the  following  schemes  through  Khadi  and Village Industries Commission (KVIC) to arrest the migration of youth from villages to cities and towns  in  the  country,  including  spinning  and  weaving  of  Khadi  and  other  traditional  Village Industries like carpentry, Black-smithy, oil extraction etc:
- 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 (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)  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.
- 3) Khadi Programme:For the development and promotion of Khadi Programme, KVIC implements following Schemes:
- i) Market Promotion and Development Assistance (MPDA).
4. ii) Interest Subsidy Eligibility Certificate (ISEC)
5. iii) Artisans Welfare Fund Trust (AWFT)
6. iv) Workshed Scheme for Khadi Artisans
- v) Strengthening  of  Infrastructure  of  Existing  Weak  Khadi  Institutions  and  Assistance  for Marketing Infrastructure.
- 4)  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)
10. ii) Forest Based Industry (FBI)
11. iii) Hand Made Paper and Fibre Industry (HMPFI)
12. iv) Mineral Based Industry (MBI)
- v) Polymer and Chemical Based Industry (PCBI)
14. vi) Rural Engineering and Bio-Technology Industry (REBT)
15. vii) Service & Textile Industry

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.
2. 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.

The above schemes are being implemented effectively to generate employment opportunities in the rural areas which will definitely check the migration of unemployed youth from rural to urban areas. During the last two years, KVIC has generated additional employment opportunities of 10.58 lakh persons under Khadi and Village Industries in the country which are as mentioned below:

(Employment in lakh persons)

| Year                  |   Cumulative Employment |   New Employment |
|-----------------------|-------------------------|------------------|
| 2017-18               |                  140.36 |             3.96 |
| 2018-19 (provisional) |                  146.98 |             6.62 |

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