Lok Sabha Question No. 1455 (UNSTARRED), answered on 2022-12-15
Subject: Cottage Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Manjulata Mandal, Ganesan Selvam, C.N. Annadurai, Gajanan Chandrakant Kirtikar, Dhanush M Kumar

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1455

## TO BE ANSWERED ON 15.12.2022

## COTTAGE INDUSTRIES

## 1455.   SHRIMATI MANJULATA MANDAL:

SHRI SELVAM G.:

SHRI C.N. ANNADURAI:

SHRI GAJANAN KIRTIKAR:

SHRI DHANUSH M. KUMAR:

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

- (a) whether entrepreneurs related to cottage industries are being trained in the country and if so, the details thereof States-wise, particularly in Tamil Nadu and Maharashtra;
- (b) whether the Government has failed to modernise the cottage industry and if so, the reasons therefor and the corrective steps taken in this regard;
- (c) whether cottage industries in villages are gradually disappearing due to liberalisation and if so, the details thereof and the criteria set for defining and reckoning cottage industries in villages;
- (d) the contribution of small and cottage industries in the economic development of the country during the last three years;
- (e) whether  the  Government  has  made  any  assessment  regarding  capacity/contribution  of cottage industries in creating employment opportunities in the country and if so, the details thereof; and
- (f) the steps taken by the Government to provide market to cottage industries and save these from liberal market forces along with the outcome thereof?

## ANSWER

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

(a): The  'Cottage  Industry'  has  not  been  defined  under  the  Khadi  and  Village  Industries Commission Act, 1956. However, the broad contours of 'Cottage Industry' are covered under the 'Village  Industry'  vertical  under  the  purview  of  the  Khadi  and  Village  Industries  Commission (KVIC)  and  are  broadly  classified  under  six  groups  for  the  purpose  of  implementation  of  its programmes which are as follows:

1. Agro Based & Food Processing Industry (ABFPI)
2. Mineral Based Industry (MBI)
3. Wellness & Cosmetics Industry
4. Handmade Paper, Leather & Plastic Industry (HPLPI)
5. Rural Engineering and New Technology Industry (RENTI)
6. Service Industry

Ministry of MSME is implementing Prime Minister's Employment Generation Programme (PMEGP) scheme,  a  credit-linked  subsidy  programme  since  2008-09  with  KVIC  as nodal agency at the national level for generating self-employment opportunities through establishment of micro enterprises, including village industries, throughout the country.

Entrepreneurs  Development  Programme  (EDP)  training  is  imparted  to  beneficiaries  who have  established  new  micro  enterprises  under  PMEGP,  through  KVIC,  Khadi  and  Village Industries Boards (KVIBs) Training Centers as well as Accredited Training Centers run by Central Government, National Small Industries Corporation Limited (NSIC),National Institute for Entrepreneurship  and  Small  Business  Development  (NIESBUD),  National  Institute  for  Micro, Small  and  Medium  Enterprises  (NIMSME),Indian  Institute  of  Entrepreneurship (IIE),  and  their partner  institutions  under  the  administrative  control  of  Ministry  of  MSME.  State  Governments, Banks, Rural Development and Self Employment Training Institutes (RUDSETI) reputed NGOs, and other organizations/institutions,  identified  by  the  Government  from  time  to  time  also  impart such training.

Further, KVIC imparts training to rural and traditional artisans in various rural industries. It provides  tools  and  equipment  and  hand  holding  support  through  implementation  of  various schemes/programmes  like  Honey  Mission  for  beekeeping  industries,  Kumbhar  Sashaktikaran Programme for Pottery artisans, Leather Craft Programme for leather artisans etc.

KVIC also conducts Skill Development Programme (SDP) and Entrepreneurship Awareness Programmes (EAP) in the country for unemployed youth to generate self-employment opportunities in traditional industries.

State-wise  number  of  candidates  trained  under  Skill  Development  Programmes  (SDP), Entrepreneurship  Awareness  Programmes  (EAP)  and  Entrepreneurship  Development  Programme (EDP)  during  the  year  2021-22  in  the  country  including  Tamil  Nadu  and  Maharashtra  States  is placed at Annexure-I.

(b): The  measures  taken  to  modernize  Village  Industries,  by  the  Ministry  of  MSME  through KVIC and Coir Board, is placed at Annexure-II.

(c) & (d): No Sir, the cottage industries in villages are gradually increasing.  The number of micro units assisted under PMEGP scheme during the last three years and current year shows an increasing trend, as may be seen from the following table:

| Year                       |   Projects |   Margin Money |   Employment |
|----------------------------|------------|----------------|--------------|
| 2019-20                    |      66653 |        1950.82 |       533224 |
| 2020-21                    |      74415 |        2188.8  |       595320 |
| 2021-22                    |     103219 |        2977.66 |       825752 |
| 2022-23 (up to 31.10.2022) |      34476 |        1111.1  |       275808 |

(e): No  assessment  has  been  made  regarding  capacity/contribution  of  cottage  industries  in creating  employment  opportunities.    However,  it  is  estimated  that  on  an  average  8  persons  per project are employed under PMEGP scheme.

(f): Steps being taken by KVIC to provide marketing support to Khadi and Village Industries units, details of which are placed at Annexure-III.

* * * * *

## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No.1455 for answer on 15.12.2022

State-wise number of candidates trained under Skill Development Programmes (SDP), Entrepreneurship Awareness Programmes (EAP) and Entrepreneurship Development Programme (EDP) during the year 2021-22

| Sl.No   | Name of the State/UT     |   SDP |   EAP |   EDP |
|---------|--------------------------|-------|-------|-------|
| 1.      | Andaman &Nicobar Islands |     0 |     0 |   124 |
| 2.      | Andhra Pradesh           |   977 |   388 |  2504 |
| 3.      | Arunachal Pradesh        |     0 |     0 |   167 |
| 4.      | Assam                    |  1264 |  2009 |  2544 |
| 5.      | Bihar                    |   710 |  1056 |  2466 |
| 6.      | Chandigarh (UT)          |     0 |     0 |    19 |
| 7.      | Chhattisgarh             |     0 |     0 |  2769 |
| 8.      | Dadra Nagar Haveli       |     0 |     0 |     5 |
| 9.      | Daman and Diu            |     0 |     0 |     7 |
| 10.     | Delhi                    |  1109 |  2429 |    81 |
| 11.     | Goa                      |     0 |     0 |    80 |
| 12.     | Gujarat                  |     0 |     0 |  4223 |
| 13.     | Haryana                  |     0 |     0 |  1720 |
| 14.     | Himachal Pradesh         |     0 |     0 |  1055 |
| 15.     | Jammu Kashmir            |   760 |  1040 | 22098 |
| 16.     | Jharkhand                |     0 |     0 |  1438 |
| 17.     | Karnataka                |  1127 |  3796 |  5937 |
| 18.     | Kerala                   |  1792 |  3405 |  2296 |
| 19.     | Ladakh (UT)              |     0 |     0 |   235 |
| 20.     | Lakshadweep              |     0 |     0 |     4 |
| 21.     | Madhya Pradesh           |  1564 |  2832 |  6553 |
| 22.     | Maharashtra              |  4249 |  7483 |  4164 |
| 23.     | Manipur                  |     0 |     0 |   743 |
| 24.     | Meghalaya                |     0 |     0 |   457 |
| 25.     | Mizoram                  |   535 |  1232 |   553 |
| 26.     | Nagaland                 |   180 |   537 |   761 |
| 27.     | Odisha                   |   219 |     0 |  2549 |
| 28.     | Puducherry               |     0 |     0 |    55 |
| 29.     | Punjab                   |     0 |     0 |  1568 |
| 30.     | Rajasthan                |   225 |  1822 |  2566 |
| 31.     | Sikkim                   |     0 |     0 |    65 |
| 32.     | Tamil Nadu               |  3318 |  3328 |  5409 |
| 33.     | Telangana                |     0 |     0 |  2468 |
| 34.     | Tripura                  |     0 |     0 |   831 |
| 35.     | Uttar Pradesh            |  1723 |  4632 | 10597 |
| 36.     | Uttarakhand              |   800 |  3240 |  1820 |
| 37.     | West Bengal              |   828 |  2127 |  2357 |
| Total   | Total                    | 21380 | 41356 | 93288 |

## Annexure-II referred to in reply to part (b) of the Lok Sabha Unstarred Question No.1455 for answer on 15.12.2022

Ministry of MSME is implementing the following schemes to modernize Village industries in the country:

- i) Scheme of Fund for Regeneration of Traditional Industries (SFURTI): The Scheme envisages providing need based assistance to traditional village industries for replacement of production equipment,  setting  up  of  Common  Facility  Centres  (CFC),  product  development,  quality improvement,  improved  marketing,  training  and  Capacity  Building,  etc.  As  on  date,  498 clusters have been approved and they are under various stages of implementation. Out of 498 SFURTI clusters, 266 clusters of rural and traditional industrial units are functional.

## KVIC:

- ii) Modified Market Development Assistance (MMDA): under the sub-scheme, KVIC provides Market Development Assistance to the Khadi Institutions for infrastructure development and for marketing support. The propaganda, Publicity and Exhibitions are also organized by KVIC to  help  in  marketing  of  products  manufactured  by  the  Khadi  Institutions  and  entrepreneurs promoted by the KVIC. An amount of Rs. 67.85 Cr financial assistance disbursed to 570 Khadi institutions in the current financial year upto 30.11.2022.
- iii) Interest  Subsidy  Eligibility  Certificate  (ISEC):  under  the  sub-scheme  Khadi  Institutions  can avail loan from Bank to cater their need of working capital and are to pay only 4% interest and remaining part of the interest charged by the Bank is borne by the Govt. of India. An amount of Rs.  19.10  Cr  has  been  disbursed  to  989  Khadi  institutions  in  the  current  financial  year  upto 30.11.2022.
- iv) 'Strengthening  of  Infrastructure  of  Weak  Khadi  Institutions  and  Assistance  for  Marketing Infrastructure': under this sub-scheme financial assistance is provided to existing weak Khadi Institutions for strengthening of their infrastructure and for renovation of selected khadi sales outlets. An amount of Rs. 1.28 Cr have been disbursed on infrastructure development for 17 khadi institutions. Under the marketing assistance component, 10 sales outlets institutions for modernization of sales outlets in the current financial year upto 30.11.2022.

## Coir Board:

- v) Modernization  of  Production  Process,  sub  scheme  of  'Science  &  Technology'  under  'Coir VikasYojana': The objective of this sub-scheme is to infuse new technologies, processes, and practices  to  improve  efficiency,  cut  costs  in  production  process,  induce  new  generation  and talent to look at the coir sector as a viable career option. Additionally, the scheme aims to drive innovation  in  products  and  techniques  to  provide  new  products  as  well  as  substitute  to prevailing products made from other raw materials like plastic or metal among others.

## Annexure-III

## Annexure-III referred to in reply to part (f) of the Lok Sabha Unstarred Question No.1455 for answer on 15.12.2022

Following steps are being taken by Khadi and Village Industries Commission (KVIC) to provide marketing support to Khadi and Village Industries (KVI) units:

- i) The  network  of  KVI  Institutions  indeed  provides  a  vide  platform  for  sale  of  products, produced  by  traditional  artisans  and  craftsmen.  It  has  a  wide  network  of  around  8035 'Khadi India' sales outlets across the country including Departmental Sales Outlets and its branches owned by KVIC.
2. ii) KVIC has started online selling of all KVI products, which are available to every Indian's door step through www.ekhadiindia.com and www.khadiindia.gov.in.
3. iii) KVIC facilitatesmarketing support by organizing District, State, National level exhibitions where the institutions, entrepreneurs promoted by KVIC can sell and display their products.
4. iv) KVIC is arranging product supply/marketing mechanism through e-Market linkage with an objective to link Buyer to Customer.
- v) KVIC  through  International  Cooperation  (IC)  Scheme  of  Ministry  of  MSME  provides financial support to MSMEs in participating in International Exhibitions/Trade Fairs etc.
6. vi) Publicity of KVI products through print, electronic, digital and social media.