Lok Sabha Question No. 732 (UNSTARRED), answered on 2022-07-21
Subject: Creation of Jobs by KVIC
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Vinayak Bhaurao Raut, Sanjay Haribhau Jadhav

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

## LOK SABHA UNSTARRED QUESTION NO. 732 TO BE ANSWERED ON 21.07.2022

## CREATION OF JOBS BY KVIC

## †732.  SHRI VINAYAK RAUT:

## SHRI SANJAY JADHAV:

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

- (a) whether  jobs  have  been  created  as  a  result  of  the  efforts  made  by  the  Khadi  and Village Industries Commission (KVIC);
- (b) if so, the details thereof especially in Maharashtra with special reference to Parbhani Parliamentary Constituency;
- (c) whether the Government has any record of the number of artisans who lost their job during lockdown;
- (d) if so, the details thereof and the number of artisans who again got their job;
- (e) whether any scheme has been implemented by KVIC to provide financial assistance to BPL artisans and if so, the details thereof; and
- (f) the initiative taken by the KVIC to create more jobs?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a): Yes Sir, the Ministry of MSME, through Khadi and Village Industries Commission (KVIC) promotes and assists Khadi and Village Industries which are engaged in production and  sales  of  KVI  products  thereby  generating  employment  opportunities  for  rural  artisans through implementation of various schemes and programmes.

The cumulative employment generated by Khadi and Village Industries upto 31.03.2022 is given below:

| Year                           | Cumulative Employment (in lakh persons)   | Cumulative Employment (in lakh persons)   | Cumulative Employment (in lakh persons)   |
|--------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
|                                | Khadi                                     | Village Industries                        | KVI                                       |
| As on 31.03.2022 (Provisional) | 4.97                                      | 162.63                                    | 167.60                                    |

- (b): The cumulative employment generated by Khadi and Village Industries in Maharashtra State upto 31.03.2022 is given below:

| Year                           | Cumulative Employment in Maharashtra State (in lakh persons)   | Cumulative Employment in Maharashtra State (in lakh persons)   | Cumulative Employment in Maharashtra State (in lakh persons)   |
|--------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                                | Khadi                                                          | Village Industries                                             | KVI                                                            |
| As on 31.03.2022 (Provisional) | 0.03                                                           | 11.65                                                          | 11.68                                                          |

Further, Ministry of MSME through KVIC is implementing Prime Minister's Employment  Generation  Programme  (PMEGP),  which  is  a  major  credit-linked  subsidy programme,  aimed  at  generating  self-employment  opportunities for  the  rural  and  urban unemployed persons  through  establishment  of  micro-enterprises  in  non-farm  sector,  in  the country  including  Parbhani  District  of  Maharashtra.  Banks  provide  the  loan,  and  subsidy (also called Margin Money subsidy) is provided by the Government of India through KVIC.

Under  PMEGP,  general  category  beneficiaries  can  avail  benefit  of  margin  money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as ST/SC/OBC/women/minorities/transgenders etc. the margin money subsidy is 35% in rural areas and 25% in urban areas. Beneficiary contribution is 10% (General Category) and 5% (Special Category). The maximum projects cost is Rs. 50 lakh in the manufacturing sector and Rs. 20 lakh in the service sector.

Performance  of  PMEGP  scheme  in  Parbhani  District  during  last  three  years  is  as follows:

| Year    |   Project (in numbers) |   Margin Money released (Rs. in lakh) |   Employment (in numbers) |
|---------|------------------------|---------------------------------------|---------------------------|
| 2019-20 |                     87 |                                119.95 |                       696 |
| 2020-21 |                     41 |                                 66.42 |                       328 |
| 2021-22 |                     73 |                                 88.18 |                       584 |

(c) & (d): The findings of a study conducted by KVIC to assess the impact of COVID-19 Pandemic on MSMEs, including units set up under PMEGP, is placed at Annexure-I.

(e): KVIC  is  not  implementing  any  specific  scheme  of  financial  assistance  to  BPL artisans.  However,  BPL  artisans  who  are  not  able  to  put  in  their  own  contribution,  are provided  training  and  tools  &  equipment  under  various  programmes  of  Gramodyog  Vikas Yojana, like Honey Mission, Kumbhar Sashaktikaran Programme, Pilot project on Agarbatti, etc.

(f): KVIC  has  taken  many  initiatives  for  promoting,  developing  and  strengthening  the rural  traditional  industries  in  the  country  and  for  employment  generation.    Further,  KVIC, through its training centres and through other promotional schemes conducts Skill Development Programme (SDP) and Entrepreneurship Awareness Programmes (EAP) in the country  for  unemployed  youth  to  generate  self-employment  opportunities  in  traditional industries. Details of KVIC's initiatives which are provided in Annexure-II.

* * * * *

## Annexure-I

Annexure-I referred to in reply to part (c)&(d) of the Lok Sabha Unstarred Question No.732 for answer on 21.07.2022

Study conducted by Khadi and Village Industries Commission (KVIC) to assess the impact of  COVID-19  Pandemic  on  MSMEs  including  units  set  up  under  Prime  Minister's Employment Generation Programme (PMEGP).  The findings of the study 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.
- iii.  Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.
- iv.  On  the  question  of  regular  payment  of  salaries  to  the  employees,  around  46.60% respondents  stated  that  they  had  paid  the  salaries  in  full,  42.54%  reported  to  have partially paid and 10.86% reported to have not paid salary for some time during this period.

## Annexure-II

## Annexure-II  referred  to  in  reply  to  part  (f)  of  the  Lok  Sabha  Unstarred  Question No.732 for answer on 21.07.2022

Khadi  and  Village  Industries  Commission  (KVIC)  has  taken  following  initiatives  for promoting, developing and strengthening the rural traditional industries in the country and for employment generation:

- i) To  supplement  the  income  of  farmers,  Adivasis  and  unemployed  youth  of  the country  KVIC  launched  Honey  Mission  during  2017-18.  Under  Honey  Mission, every person is provided 10 bee boxes with live bee hives.
2. ii) Under Kumbhar Sashaktikaran Programme, KVIC is uplifting rural pottery artisan's livelihood  by  providing  skill  upgradation  training  and  providing  new  home  scale energy efficient equipment like electric pottery wheels, blunger, pug mill, kiln etc. for producing good quality of products.
3. iii) Considering the need of present generation and the effect of COVID-19 Pandemic, KVIC has started online selling of all KVI products. KVI products are available to every Indian's door step through www.ekhadiindia.com and www.khadiindia.gov.in.
4. iv) Awareness camps, workshops, Bankers Meetings and exhibitions at all levels are being organized in order to propagate the KVI  schemes  for  generation of employment opportunities.
- v) The 'Khadi Prakritik Paint' was launched and KVIC has started the manufacturing of  paint.  Any  individual  can  set  up  Khadi  Prakritik  Paint  Unit  under  PMEGP Scheme.