Lok Sabha Question No. 2160 (UNSTARRED), answered on 2019-07-04
Subject: Potential of Small Scale Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Gitaben Vajesingbhai Rathva

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

## LOK SABHA UNSTARRED QUESTION NO.2160 TO BE ANSWERED ON 04.07.2019

## POTENTIAL OF SMALL SCALE INDUSTRIES

## 2160.      SHRIMATI RATHVA GITABEN VAJESINGBHAI:

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

- (a) the  potentiality  of  homemade,  small  scale  industries  in  the  field  of  food  processing,  daily services and daily needs, as India is highly populated country with less land;
- (b) the measures taken by the Ministry to propagate above needs through the Ministry and also to avoid big industries in this field; and
- (c) the details of big hindrances to the homemade, small scale industries and measures taken to come out of it?

## ANSWER

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

- (a): Khadi and Village Industries Commission, a statutory body under Ministry of Micro, Small &  Medium  Enterprises  promotes  non-agricultural  and  post  harvesting  activities  under  following village industries groups:
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, Pickle, Jam & Papad making industries 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. NonConventional Energy, Bio-gas plants, Carpentry & Black smithy, Electronics, etc.
7. Service & Textile Industry (STI) includes industries viz. Electronic and Electrical devise repairing, Machine repairing, Plumbing and other servicing works, Sweater Hosiery, Band aid cloth and other textile products etc

A homemade, micro industry in the field of food processing comes under the group of Agro Based & Food Processing Industry (ABFPI) of Village Industries groups.

To  promote  these  micro  enterprises  in  the  country,  KVIC  implements  one  of  the  major programme namely Prime Minister's Employment Generation Programme (PMEGP). 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.   General category beneficiaries can avail of margin money subsidy of 25% of the project cost to set up projects in rural areas and 15% in urban areas where as for beneficiaries belonging to SC/ST/Women/PH/Minorities/ExServicemen/NER, the margin money subsidy is 35% for  rural areas and 25% for urban areas. The maximum cost of projects eligible for margin money subsidy is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.

There is vast scope for Agro based and Food Processing industries in the country. It is seen that 17.44 % of units of ABFPI are assisted out of total units assisted under PMEGP during last three years.

The status of the units under ABFPI assisted during last three years is given as below:-

| Year                  |   Total No. of project assisted under PMEGP |   Project assisted under ABFPI in PMEGP | Percentage of ABFPI units out of total units set up under PMEGP   |
|-----------------------|---------------------------------------------|-----------------------------------------|-------------------------------------------------------------------|
| 2016-17               |                                       52912 |                                    8944 | 16.90%                                                            |
| 2017-18               |                                       48398 |                                    8386 | 17.33%                                                            |
| 2018-19 (Provisional) |                                       73427 |                                   11901 | 16.21%                                                            |

(b)&(c): KVIC has taken following steps to propagate the KVI programme:

- i. Awareness  camps,  workshops,  buyer  seller  meets  organize  at  different  levels  including international trade fair and exhibitions;
- ii. Publicity is made through print and electronic media at different occasions;
- iii. Assist  entrepreneurs  in  marketing  exhibitions  which  are  organized  at  national,  state  and district level;
- iv. Skill  development  training  in  various  disciplines  is  imparted.  The  person  trained  can availbenefits of KVI schemes and set their own enterprise; and
- v. As  per  gazette  Notification  of  Govt.  of  India  'The  Central  Government  Ministries, Departments and Public Sector Undertakings shall procure minimum 25% of their annual value of goods or services from Micro and Small Enterprises.'

The small  and  micro  industries  usually  face  difficulties  in  mobilizing  the  capital  to  set  up their  industries  and  also  market  their  products  in  competitive  environment.    In  order  to  address these difficulties and support, not only setting up of micro industries but to make them sustainable, KVIC  provides  margin  money  subsidy  under  PMEGP  scheme  so  that  more  and  more    micro industries can be promoted and employment opportunities could be generated.

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