Lok Sabha Question No. 1741 (UNSTARRED), answered on 2021-07-29
Subject: Generation of Employment by KVIC
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Aparajita Sarangi

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

## LOK SABHA UNSTARRED QUESTION NO. 1741 TO BE ANSWERED ON 29.07.2021

## Generation of Employment by KVIC

## 1741.  SHRIMATI APARAJITA SARANGI:

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

- (a) whether the Government  has records containing the number  of artisans who  lost employment during lockdown and if so, the details thereof;
- (b) the  schemes  implemented  by  the  Khadi  and  Village  Industries  Commission  (KVIC)  to provide financial assistance to BPL artisans;
- (c) the initiatives taken by KVIC to boost employment;
- (d) whether the efforts of KVIC have resulted in generation of employment; and
- (e) if so, the details thereof particularly in Odisha?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

- (a): Studies  have  been  conducted  by  Khadi  and  Village  Industries  Commission  (KVIC)  and National  Small  Industries  Corporation  (NSIC)  to  assess  the  impact  of  COVID-19  Pandemic  on MSMEs  including  units  set  up  under  Prime  Minister's  Employment  Generation  Programme (PMEGP).
- A. The findings of the study conducted by KVIC are as under:
- i. 88% of the beneficiaries of PMEGP scheme reported that they were negatively affected due  to  Covid-19  while  the  remaining  12%  stated  that  they  were  benefitted  during Covid-19 Pandemic.
- ii. Among the 88% who were affected,  57%  stated  that  their  units  were  shut  down  for some time during this period, while 30% reported drop in production and revenue.
- B. The  main  findings  of  the  online  study  conducted  by  NSIC  to  understand  the  operational capabilities  and  difficulties  faced  by  the  beneficiaries  of  NSIC  schemes  amid  Covid-19 pandemic are as follows:
- i. 91% MSMEs were found to be functional.
- ii. Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units)
- (b) & (c): KVIC is implementing following schemes to boost employment across the country including BPL artisans:

1. Credit-linked subsidy programme named PMEGP since 2008-09 for generating employment in  the  country  by  setting  up  of  micro-enterprises  in  the  non-farm  sector.  Under  the  scheme, beneficiaries can avail loan up to Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector, with Margin Money subsidy of 15% to 35% for different categories. Around 80% of these micro units are set up in rural areas.

Since its inception till 30th June 2021, around 7 lakh micro enterprises have been assisted providing employment to an estimated 57 lakh persons.

2. Following programmes under Gramodyog Vikas Yojana through KVIC:
- i. Honey  Mission  (Beekeeping  Programme):  To  supplement  the  income  of  farmers, Adivasies  and  unemployed  youth  of  the  country,  KVIC  has  launched  Honey  Mission  during 2017 - 18, providing farmers with bee boxes, live bee hives, equipments and training.  A total number of 15,445  beneficiaries  have  been  provided  with  1,53,259  of  Bee-Hives(Boxes)  from 2017-18 to 2020-21.
- ii. Kumbhar Sashaktikaran Programme (Mineral Based Industry): Under the programme, for up-liftment of the rural potter's livelihood, skill up-gradation training and new home scale energy efficient equipment like electric pottery wheels, blunger, pug mill, kiln etc. are provided for producing quality products. A total of 21030 electric pottery wheels have been distributed under this programme since 2017-18 to 2020-21.
- iii. Leather craft Artisans Empowerment Programme: The objective of the programme is to uplift the leather craft artisans, livelihood by providing training for skill up-gradation and new home-scale energy-efficient tool kits for producing quality products.
3. Khadi  Vikas  Yojana  (KVY):  to  generate  sustainable  employment  in  the  khadi  sector through  assistance  to  Khadi  artisans  and  institutions  under  various  components,  viz.,  Market Development Assistance, Interest Subsidy to ensure availability of working capital on reduced rate of interest, Creation of Work-sheds for providing Khadi artisans with sufficient space and congenial work environment, assistance to strengthen weak Khadi Institutions, assistance for modernization of sales outlets of Khadi Institutions, training to the artisans, etc.
4. Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI):  to  organize traditional industries and artisans into clusters to make their products competitive and provide the artisans  with  sustainable  employment.  Since  2014  when  the  scheme  was  revamped  till  date,  99 clusters have been approved under KVIC benefitting about 41000 artisans with GoI assistance of Rs.176 crore.
7. (d) & (e): Yes  Sir.  The  details  of  estimated  employment  generated/sustained  through  KVIC across the country and particularly in Odisha for the last three years is given below:

Estimated Employment (in lakh persons)

| Sr. No.   |                    | 2018-19   | 2018-19   | 2019-20   | 2019-20   | 2020-21   | 2020-21   |
|-----------|--------------------|-----------|-----------|-----------|-----------|-----------|-----------|
|           | Particulars        | All India | Odisha    | All India | Odisha    | All India | Odisha    |
| 1         | Khadi Programme    | 4.96      | 0.05      | 4.97      | 0.05      | 4.97      | 0.05      |
| 2         | Village Industries | 142.03    | 4.77      | 147.76    | 5.00      | 153.71    | 5.25      |
|           | Total              | 146.99    | 4.82      | 152.73    | 5.05      | 158.68    | 5.30      |