Lok Sabha Question No. 1117 (UNSTARRED), answered on 2018-12-17
Subject: Promotion of Khadi
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: LALLU SINGH, REKHA ARUN VERMA, KAMLA DEVI PATLE, LAKHAN LAL SAHU

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

## LOK SABHA UNSTARRED QUESTIONNO. 1117 TO BE ANSWERED ON 17.12.2018

## PROMOTION OF KHADI

1117.   SHRI LALLU SINGH:

SHRIMATI REKHA VERMA:

SHRIMATI KAMLA DEVI PAATLE:

SHRI LAKHAN LAL SAHU:

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

- (a)   whether the Government proposes to turn khadi into an international brand, if so, the details thereof including the schemes being implemented presently to promote khadi;
- (b)   whether rural enterprises play an important role in country's industrial development, if so, the details thereof;
- (c) the number of khadi artisans in the country at present, State/UT-wise;
- (d)   the  objectives  and  targets  and  the  current  implementation  status  of  the  khadi workshed scheme in the country; and
- (e) the  details  of  beneficiaries  of  the  said  scheme  alongwith  the  other  measures taken/proposed  to  be  taken  by  the  Government  to  promote  khadi  in  the  country, State/UT-wise?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): Yes,    Madam.  Government  in  the  Ministry  of  Micro,  Small  and  Medium Enterprises  through  Khadi  and  Village  Industries  Commission(KVIC)  has  taken various  initiatives  to  make  Khadi  an  international  brand.    Details  of  the  initiatives taken is placed at Annexure-I.

Government  has  been  implementing  a  number  of  schemes  for  the  holistic development and promotion of Khadi through KVIC, which include:

- 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.

- 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 & VI products. Under the Modified MDA (MMDA) financial assistance at 30% of the Prime  Cost, is distributed amongst  Producing  Institutions (40%),  Selling Institutions (20%) and Artisans (40%).
- iii) 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,  (ii)  Direct  Reform  Assistance  to  400  Khadi  Institutions  &  (iii) Implementation of a well-knit MIS.
- (b): Micro, Small and Medium Enterprises (MSMEs) have been recognized as the engine of economic growth and plays a vital role in the overall industrial economy of the  country.  MSMEs  is  the  second  largest  employer  after  agriculture  and  plays  a crucial role in providing large employment  opportunities. It also helps in industrialization of rural and backward areas, thereby reducing the regional imbalances, assuring more equitable distribution of national income and wealth.Employment  under  Khadi  &  Village  Industries  (KVI)during  the  last  three years is as follows:
- (c): Number of Khadi Artisans in the country at present, State/UT-wise is placed at Annexure-II.

| Year    |   Cumulative employment under KVI(in lakh persons) |
|---------|----------------------------------------------------|
| 2015-16 |                                             137.83 |
| 2016-17 |                                             136.4  |
| 2017-18 |                                             140.36 |

- (d): KVIC launched Workshed Scheme for Khadi artisans belonging to BPL Group during  the  year  2008-09.  The  objective  of  the  scheme  is  to  provide  better  work ambience, more working and storing space for storing raw material, implements and accessories,  yarn/cloth,  etc.  thereby  improving  efficiency  and  productivity  of  the artisans.The pattern of assistance under the scheme is as follows:

| COMPONENT                                                       | AREA / UNIT              | AMOUNT OF ASSISTANCE                                                                      |
|-----------------------------------------------------------------|--------------------------|-------------------------------------------------------------------------------------------|
| Construction of Individual Work- shed                           | 20 Sq.Mtrs.              | Rs. 60,000/- or 75% of the cost of Work-shed (90% for NER), whichever is less             |
| Construction of Group Work-shed (Minimum5& Maximum 15 Artisans) | 10 Sq. Mtrs. per Artisan | Rs. 40,000/- per Artisan or 75% of the cost of work-shed (90% for NER), whichever is less |

A target of 442 worksheds construction has been set during the year 2018-19. 287 worksheds have been constructed upto 30.11.2018.

- (e): State/UT-wise details of number of artisans given assistance under Workshed Scheme during 2017-18 is placed at Annexure-III.

* * *

## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 1117 for answer on 17.12.2018

## Following are the initiatives taken to make Khadi an international brand:

1. To ensure  genuineness  of  Khadi  'Khadi  Mark'  has  been  notified  by  Government  of India.
2. Ministry of Commerce and Industry, Govt. of India has extended KVIC, the status of Deemed EPC, for supporting  promotion  of  Khadi  and  Village  Industries  products  in international market. 1088 Khadi & Village Industries Institutions and REGP/PMEGP Units have taken its membership to enter the field of export. KVIC through its assisted institutions and units participates in various international exhibitions:
3. Tie up arrangement  with premier institutions like Federation of Indian Export Organization (FIEO), World Trade Centre (WTC), Indian Trade Promotion Organization (ITPO), Trade Promotion Council of India etc., for invigorating business opportunities  in  the  overseas  market  by  conducting  exhibitions  and  workshops  for Khadi Institutions.
4. Tie  up  arrangements  for  bringing  out  innovative  export  quality  product  designs  with NIFT, etc.
5. 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 segment.
6. Financial support under International Cooperation (IC) Scheme  of Ministry of MSMEfor  Technology  infusion  and/or  up-gradation  of  MSMEs,  their  modernization and promotion of their exports through participation in  international exhibitions/trade fairs etc.
- a. To and Fro economy class air fare subject to a maximum of Rs. 1.50 lakh or actual fare paid, whichever is lower.
- b. 100% of the space rent subject to a maximum of Rs. 1.00 lakh or actual rent paid, whichever is lower.
- c. US Dollar 150 per day Duty allowance.
7. Assistance  would  be  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 would be as under:

| S. No.   | Eligible items   | Scale of assistance for KVIs                                                                                                                                                |
|----------|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)       | Space Rent       | 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         | 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) |

## Annexure-II referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 1117 for answer on 17.12.2018

## State/UT-wise number of Khadi artisans including Polyvastra and Solarvastra artisans in the country at present

| Sl. No.   | Name of State/UT   |   No. of Artisans |
|-----------|--------------------|-------------------|
| 1         | Jammu &Kashmir     |             21976 |
| 2         | Himachal Pradesh   |              3426 |
| 3         | Punjab             |              5053 |
| 4         | U.T. Chandigarh    |                54 |
| 5         | Haryana            |             57160 |
| 6         | Delhi              |              1180 |
| 7         | Rajasthan          |             28527 |
| 8         | Uttarakhand        |             17936 |
| 9         | Uttar Pradesh      |            132336 |
| 10        | Chhattisgarh       |              7264 |
| 11        | Madhya Pradesh     |              4245 |
| 12        | Nagaland           |               295 |
| 13        | Arunachal Pradesh  |                31 |
| 15        | Manipur            |               143 |
| 16        | Mizoram            |                14 |
| 17        | Meghalaya          |               107 |
| 18        | Assam              |              5083 |
| 19        | Bihar              |             72050 |
| 20        | West Bengal        |             33717 |
| 21        | Jharkhand          |              1807 |
| 22        | Orissa             |              5272 |
| 23        | Gujarat            |             18555 |
| 24        | Maharashtra        |              3404 |
| 25        | Andhra Pradesh     |             10367 |
| 26        | Telangana          |              2380 |
| 27        | Karnataka          |             28252 |
| 28        | Kerala             |             14331 |
| 29        | Tamil Nadu         |             19814 |
| 30        | Pondicherry        |               465 |
| Total     | Total              |            495244 |

## Annexure-III referred to in reply to part (e) of the Lok Sabha Unstarred Question No. 1117 for answer on 17.12.2018

## State/UT-wise details of number of Khadi artisans given assistance under Workshed Scheme during 2017-18

| Sl. No.   | Name of State/UT   |   No. of Khadi artisans assisted under Workshed Scheme |
|-----------|--------------------|--------------------------------------------------------|
| 1         | Jammu &Kashmir     |                                                      0 |
| 2         | Himachal Pradesh   |                                                    120 |
| 3         | Punjab             |                                                     65 |
| 4         | U.T. Chandigarh    |                                                      0 |
| 5         | Haryana            |                                                     51 |
| 6         | Delhi              |                                                      0 |
| 7         | Rajasthan          |                                                      0 |
| 8         | Uttarakhand        |                                                      0 |
| 9         | Uttar Pradesh      |                                                   1300 |
| 10        | Chhattisgarh       |                                                      0 |
| 11        | Madhya Pradesh     |                                                     20 |
| 12        | Nagaland           |                                                     30 |
| 13        | Arunachal Pradesh  |                                                      0 |
| 15        | Manipur            |                                                      0 |
| 16        | Mizoram            |                                                      0 |
| 17        | Meghalaya          |                                                      0 |
| 18        | Assam              |                                                    170 |
| 19        | Bihar              |                                                      0 |
| 20        | West Bengal        |                                                    100 |
| 21        | Jharkhand          |                                                      0 |
| 22        | Orissa             |                                                     80 |
| 23        | Gujarat            |                                                      0 |
| 24        | Maharashtra        |                                                     20 |
| 25        | Andhra Pradesh     |                                                    113 |
| 26        | Telangana          |                                                     80 |
| 27        | Karnataka          |                                                    380 |
| 28        | Kerala             |                                                    245 |
| 29        | Tamil Nadu         |                                                    100 |
| 30        | Pondicherry        |                                                      0 |
| Total     | Total              |                                                   2874 |