Lok Sabha Question No. 4303 (UNSTARRED), answered on 2020-03-19
Subject: Revival of Khadi and Village Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sunil Kumar Pintu, Rita Bahuguna Joshi

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4303 TO BE ANSWERED ON 19.03.2020

## REVIVAL OF KHADI AND VILLAGE INDUSTRIES

4303.        SHRI SUNIL KUMAR PINTU:

SHRIMATI RITA BAHUGUNA JOSHI:

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

- (a) whether  the  Government  has  any  proposal  to  revive  Khadi  and  Village Industries in Bihar with an aim to increase the production of Khadi in the country;
- (b) if so, the details thereof and if not, the reasons therefor; and
- (c) whether the Government has prepared a roadmap to collaborate with the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises  and  incorporate  an  integrated  strategy  for  promotion  of  Khadi textiles and if so, the details thereof?

## ANSWER

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

- (a): Yes,  Sir.  Ministry of Micro, Small and Medium Enterprises (MSME), through Khadi  and  Village  Industries  Commission  (KVIC),  has  been  implementing  Khadi Reform and Development Programme (KRDP) scheme for revival and increase the production of Khadi, not only in Bihar, but throughout the country.
- (b): In order to revitalize and reform the activities of Khadi and Village Industries (KVI) Sector, in terms of employment generation, enhancement in earning of artisans and  ensure  positioning  of  Khadi  in  consonance  with  the  current  market  trend,  a comprehensive reform programme namely Khadi Reform and Development Programme (KRDP), approved by Government of India is being implemented with the assistance from Asian Development Bank (ADB).

Objectives: KRDP aims to revitalize the Khadi and Village Industries through Policy and Institutional Reforms. Specific objectives are:

- i) Repositioning Khadi and aligning it to market demand and trends.
2. ii) Enhancing artisan welfare and empowerment.
3. iii) Undertaking extensive capacity building of Khadi Institutions (KIs).
4. iv) Strengthening institutional mechanisms.
- v) Implementation  of  MIS  at  Khadi  Institution  level  and  e-Governance  at KVIC.
6. vi) Strategic development of traditional village industries.

A total of 22 Khadi Institutions were given assistance under KRDP with a financial outlay  of  Rs.1484.93  lakhs  for  refurbishment  of  Khadi  programme  in  the  State  of Bihar.

- (c): Ministry  of  MSME  provides  financial  assistance  in  the  form  of  grant  and subsidy to KVIC for promotion and development of Khadi Programme. Ministry has approved Khadi Vikas Yojana for the development of Khadi programme during the year 2019-20, under which assistance is provided under following components:
- i) Modified Market Development Assistance (MMDA):  KVIC  provides Market Development Assistance to the registered Khadi Institutions and 40% of total MMDA to the Khadi artisans engaged in production activity.
- ii) Interest  Subsidy  Eligibility  Certificate  (ISEC)  Scheme:  KVIC  provides interest  subsidy  on  the  working  capital  loan  availed  by  Khadi  Institutions  for undertaking  production  and  sales  activities  under  Khadi  programme.  Under  the scheme interest @ 4% per annum is to be paid by the Khadi Institution and balance i.e. actual lending rate minus 4% is to be paid by the Government as interest subsidy.
- iii) Workshed  Scheme for Khadi Artisans: Khadi artisans are provided worksheds for better work atmosphere and storing the materials, under which financial assistance up to Rs. 60000/- is provided per workshed.
- iv) For revival of sick Khadi Institutions, assistance upto Rs. 9.90 lakh is provided to weak and problematic Khadi Institutions to bring them back to normalcy. For the renovation  and  modernization  of  sales  outlets  run  by  KVIC,  Khadi  Institutions  and KVIBs  financial  assistance  are  being  provided  under  'Assistance  for  Marketing Infrastructure' scheme.
- v) Rozgar Yukt Gaon (RYG): a new component under Khadi Vikas Yojana has been introduced with objective of introducing enterprise led model replacing subsidyled  model  and  create  an  additional  12,500  direct  employment  opportunities  in  50 villages,  which  are  deprived  of  opportunities  and  sustainable  livelihood  support systems, in addition to spinning out secondary  and  ancillary opportunities of employment  in  a  wider sense. This will generate  nearly  18,265  employment opportunities in which 12,500 will be direct and 5,765 will be indirect and building a potential capacity of annual production turnover of value added products to a tune of Rs.261.00 crores. In Bihar State, the target of 2 villages have been allotted under RYG scheme for overall holistic development under khadi programme.

It  has  been  decided  to  set  up  Centre  of  Excellence  for  Khadi  (CoEK)  in association with National Institute of Fashion Technology (NIFT), New Delhi, with Hub at New Delhi and Spokes at Shillong, Bengaluru, Kolkata & Gandhinagar.  The main  objective  of  CoEK  will  be  to  provide  design  input  to  Khadi  sector  to  attract niche market in domestic and international.

To ensure genuineness of Khadi, 'Khadi Mark' regulation has been notified by Government of India.

As  of  now,  2326  number  of  Khadi  Institutions  are  working  under  Khadi Programme, out of which 85 KIs are working in Bihar State.