Lok Sabha Question No. 2141 (UNSTARRED), answered on 2019-07-04
Subject: Encouraging Small and Medium Enterprises in International Market
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Queen Oja

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

## LOK SABHA UNSTARRED QUESTION NO. 2141 TO BE ANSWERED ON 04.07.2019

## ENCOURAGING SMALL AND MEDIUM ENTERPRISES IN INTERNATIONAL MARKET

## 2141.       SHRIMATI QUEEN OJA:

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

- (a) whether  the  Government  is  encouraging  Small  and  Medium  Enterprises  in  Assam  in respect of bamboo, jute and coconut to catch up international market share;
- (b) if  so,  whether  the  trade  shows  such 'An  International bamboo Convention' in Guwahati would be financially supported by trade promotion institutions; and
- (c) if not, the reasons therefor?

## ANSWER

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

- (a): Ministry  of  MSME  is  implementing  Scheme  of  Fund  for  Regeneration  of  Traditional Industries  (SFURTI)  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.

In Assam, two bamboo SFURTI clusters have been sanctioned which are as under:

|   Sl. No. | Cluster name                               | Name/ Product                                | Nodal Agency                                   |   Amount Sanctioned (Rs. in Lakh) |
|-----------|--------------------------------------------|----------------------------------------------|------------------------------------------------|-----------------------------------|
|         1 | Majuli Handicraft Cluster, Jorhat District | Unique handicraft Endi silk &Bamboo products | Indian Institute of Entrepreneurship, Guwahati |                            137.3  |
|         2 | Bechimari Bamboo Cluster, Darrang District | Cane &Bamboo                                 | Indian Institute of Entrepreneurship, Guwahati |                             92.34 |

Further, Coir Vikas Yojana is being implemented by Coir Board to cater to the multiple developmental needs of coir industry.  Interventions under 'Export Market Promotion' component of  the  Scheme,  includes  participation  in  international  exhibitions,  organisation  of  product  and catalogue  shows/publicity  abroad,  providing  assistance  under  Export  Market  Development Assistance Scheme etc. with the objective of encouraging the small scale exporters to enter global market  and  to  expand  the  export  of  Indian  coir  products.  Under  this  scheme,  the  eligible entrepreneurs will get reimbursement of space rent, air fare, freight charges, etc. for participation in  international  exhibitions/buyer  seller  meets  as  per  the  eligibility  conditions  and  scale  of assistance prescribed in the scheme.

In  addition,  Coconut  Development  Board  (CDB)  under  the  Ministry  of  Agriculture  & Farmers Welfare is encouraging the entrepreneurs at all levels in the country including the State of Assam  for  production  of  quality  products  from  coconut  thereby  creating  avenues  for  market development  in  the  domestic  market  and  in  international  trade.    Ministry  of  Commerce  has notified Coconut Development Board as an Export Promotion Council for all coconut products other than those made from coconut husk and fiber on 1.4.2009 vide Public Notice No.169 (RE2008)/2004-2009.A total of 3854 exporters of coconut products have registered with  the CDB. The export of coconut and its value added products during 2018-19 was to the tune of Rs.2045.36 crore.

The restructured National Bamboo Mission (NBM) has been launched in April, 2018 by Ministry of Agriculture & Farmers Welfare. Budget Estimated for the year 2019-20 is Rs. 150.00 crores. It focuses on the development of complete value chain of bamboo sector to link growers with  consumers  starting  from  planting  material,  plantation,  creation  of  facilities  for  collection, aggregation,  processing  marketing,  micro,  small  &  medium  enterprises,  skill  development  and brand building initiative in a cluster approach mode.

NBM has provision for following interventions which may encourage international market share:

- i) Establishment of Micro/Medium Processing Units
2. ii) Promotion of Bamboo Mandi and e-trading
3. iii) Organizing workshop/seminar/training at International/ National/ State/ District levels
4. iv) Participation in domestic trade fairs/ International Trade Fairs etc.

(b)&(c): National Bamboo Mission under the Ministry of Agriculture & Farmers Welfare supports only those interventions which are covered under the Operational Guidelines for NBM which are annexed.  Ministry of MSME does not support any such event.

* * *

## Annexure Annexure referred  to  in  reply  to  part  (b)&(c)  of  the  Lok  Sabha  Unstarred  Question  No.

## 2141 for answer on 04.07.2019

## Interventions with cost norms and funding pattern

| Sl. No.                                           | Tentative Activities                                                                      | Tentative Activities                                 | Indicative unit cost (upper limit) (Rs in lakh)      | Pattern of assistance                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------------|-------------------------------------------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A Propagation &Cultivation                        | A Propagation &Cultivation                                                                | A Propagation &Cultivation                           | A Propagation &Cultivation                           | A Propagation &Cultivation                                                                                                                                                                                                                                                                                                                             |
| 1.                                                | Bamboo Nursery both in public and by private sectors including strengthen (project based) | i) Hi-tech (2 ha) ii) Big (1 ha) iii) Small (0.5 ha) | 50 16 10                                             | 100% of cost to Govt. sector and 50% of cost to private sector as credit linked back ended subsidy                                                                                                                                                                                                                                                     |
| 2.                                                | High density Bamboo plantation on Govt./ Panchayat/ Community land including waste lands  |                                                      | Rs 1.00 lakh per ha over a period of 3 years         | 100% of cost to Govt. sector. For private sector 50% of the cost upto 2 ha (~ <3000 plants), 20% of the cost for 2 - 4 ha (up to 10000 plants) over 3 years (50:30:20). Additional 10% assistance for NE States. For plantation above 4 ha no subsidy will be provided. Maintenance funds will be linked to performance (survival %as per para 10.2.4) |
| 3.                                                | Block plantation/ boundary plantation on farmers field                                    |                                                      | Rs.1.00 lakh per ha (equivalent to Rs 240 per plant) | 100% of cost to Govt. and 50% of the cost to Private Sector over 3 years (50:30:20) Additional 10% assistance for NE States Maintenance funds will be linked to performance (survival %as per para 10.2.4)                                                                                                                                             |
| B. Promotion of bamboo treatment and preservation | B. Promotion of bamboo treatment and preservation                                         | B. Promotion of bamboo treatment and preservation    | B. Promotion of bamboo treatment and preservation    | B. Promotion of bamboo treatment and preservation                                                                                                                                                                                                                                                                                                      |
| 1.                                                | Establishment of bamboo treatment and seasoning plants                                    | In Govt. &private Sector                             | 20 (Project based)                                   | 100% of cost to Govt. For Private Sector 50% of project cost subject to maximum upto indicative cost as credit linked back ended subsidy                                                                                                                                                                                                               |
| 2.                                                | Establishment of carbonisation plants                                                     | In private Sector                                    | 30 (PB)                                              | -do-                                                                                                                                                                                                                                                                                                                                                   |
| 3.                                                | Establishment of livelihood business incubators                                           | Govt./Private sector                                 | 100 (PB)                                             | 100% of cost to Govt. For Private Sector 50% of project cost subject to maximum upto indicative cost as credit linked back ended subsidy for purchase of plant &machineries only. (additional 10% for NE states)                                                                                                                                       |

| C   | Product Development and Processing                                                     | Product Development and Processing                                                    | Product Development and Processing                            | Product Development and Processing                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Establishment of processing units for value addition of Bamboo (in Nos.)               | Setting up of unit for cross cutting, slicing, splitting, knots removing, shaping etc | 30 (PB)                                                       | 100% of cost to Govt. For Private Sector 50% of project cost subject to maximum upto indicative cost as credit linked back ended subsidy (additional 10% for NE states) |
| 2.  | Management of Bamboo waste in primary processing units                                 | For making of value added products like pellets &activated carbon.                    | 25(PB)                                                        | -do-                                                                                                                                                                    |
| 3.  | Establishment of units (in                                                             | Handicrafts/Cottage industry                                                          | 15 (PB)                                                       | - do -                                                                                                                                                                  |
| 3.  | Micro/Medium processing Nos.)                                                          | Furniture making                                                                      | 25 (PB)                                                       | - do -                                                                                                                                                                  |
| 3.  |                                                                                        | Jewellery making                                                                      | 15 (PB)                                                       | - do -                                                                                                                                                                  |
| 3.  |                                                                                        | Bamboo shoots processing                                                              | 20 (PB)                                                       | - do -                                                                                                                                                                  |
| 3.  |                                                                                        | Incense stick making                                                                  | 25 (PB)                                                       | - do -                                                                                                                                                                  |
| 3.  |                                                                                        | Fabric/Fibre extraction                                                               | 50 (PB)                                                       | - do -                                                                                                                                                                  |
| 3.  |                                                                                        | Common facility centre (CFC)                                                          | 25 (PB)                                                       | -do-                                                                                                                                                                    |
| 3.  |                                                                                        | Bamboo board/mat/corrugated sheets /floor tiles making                                | 200 (PB)                                                      | -do-                                                                                                                                                                    |
| 3.  | Bio Energy                                                                             | extraction                                                                            | 200 (PB)                                                      | - do -                                                                                                                                                                  |
| 3.  |                                                                                        | Activated Carbon product                                                              | 200 (PB)                                                      | -do-                                                                                                                                                                    |
| 3.  | Ethanol                                                                                | Gassifier                                                                             | (PB)                                                          |                                                                                                                                                                         |
|     |                                                                                        |                                                                                       | 500                                                           | -do-.                                                                                                                                                                   |
| D   | Promotion and Development of Infrastructure for Bamboo Market                          | Promotion and Development of Infrastructure for Bamboo Market                         | Promotion and Development of Infrastructure for Bamboo Market | Promotion and Development of Infrastructure for Bamboo Market                                                                                                           |
| 1.  | Establishment of bamboo depots and godowns                                             | In Govt. sector/ Private sector                                                       | 50 (PB)                                                       | 100% of cost in Govt. sector. 25% assistance as credit linked back ended subsidy in for private sectors subject to maximum upto indicative cost (33% for NE States).    |
| 2.  | Promotion of bamboo mandi (bamboo market place) and e-trading                          | In Govt. sector/ private sector                                                       | 100 (PB)                                                      | 100% of cost in Govt. sector. 25% assistance in private sectors subject to maximum upto indicative cost (33% for NEStates).                                             |
| 3.  | Rural Haat                                                                             | Retail direct marketing                                                               | 20 (PB)                                                       | -do-                                                                                                                                                                    |
| 4.  | Bamboo bazaar                                                                          | Retail outlets for value added products at prominent places in the State              | 15(PB)                                                        | -do-                                                                                                                                                                    |
| E   | Development of tools, equipment &machinery                                             | Development of tools, equipment &machinery                                            | Development of tools, equipment &machinery                    | Development of tools, equipment &machinery                                                                                                                              |
| 1.  | Technological enhancement of indigenous tools, equipment &machinery                    |                                                                                       | Project based                                                 | 100% grant to Govt. institutions for development of design etc., 50% grant to those machine making units who are developing these machines                              |
| 2.  | Import of technological superior tools, equipment& machinery in Common Facility Centre |                                                                                       | -do-                                                          | -do-                                                                                                                                                                    |

## F   Skill Development and awareness campaign (upto 5% of allocation)

- i) Training of Farmers/ Artisans/ field functionaries/ International training / visit for exposure of NBM staff/ field functionaries including farmers and entrepreneurs in bamboo sector to upcoming technologies/ Entrepreneurs Training

Project based

100% of cost Rs. 1000 per head per day or as per the  approved rates of the Govt. Institute

- ii) Organizing workshop/ Seminars/training at International/ National/ State/ District

Project Based

100% for Government

- iii) Participation in domestic trade fairs/ international trade fairs/exhibition etc. including travel + boarding/ lodging of participating artisans

Project Based

-do-

## G   Research & Development (upto 10% of allocation)

- 1 Identification  of genetically superior species / varieties

- 2 Establishment   of tissue culture lab including strengthen for propagation of identified species / varieties + field trials

- 3 Demonstration plots to exhibit best practice to farmers

- 4 Incubation Centre

- 5 Bamboo market research

Project based

For private sector upto 10 lakhs

For Government organisation 100%

## H    Project Management (upto 5% of allocation)

Project management

- [ ] contingency Monitoring & Evaluation

Proposal based

Upto 5%

100%

NOTE: The funding pattern proposed is 60:40 between Centre: State Govt for all States excepting 8 states of NE Region, the hilly states of Himachal Pradesh, Uttarakhand and Jammu & Kashmir where it would be 90:10 fund sharing and 100% in case of UTs/ BTSGs (existing). If funds are released  by  NBM  (Headquarter)  directly  to  any  Central  Institution  for  any  specific  project  / intervention the funding will be 100% central share.