Lok Sabha Question No. 3799 (UNSTARRED), answered on 2023-03-23
Subject: Improvement of Cottage and Small Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Mitesh Rameshbhai (Bakabhai) Patel, Ramesh Chand Bind, Shardaben Anilbhai Patel

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

## LOK SABHA UNSTARRED QUESTION NO. 3799 TO BE ANSWERED ON 23.03.2023

## IMPROVEMENT OF COTTAGE AND SMALL INDUSTRIES

3799.

SHRI MITESH RAMESHBHAI PATEL (BAKABHAI):

SHRI RAMESH CHAND BIND: SHRIMATI SHARDABEN ANILBHAI PATEL:

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

- (a) the details of schemes being run by the Government for improvement of cottage and small industries; and
- (b) the  details  of  facilities  being  provided  by  the  Government  for  establishment  of  cottage industries in various States of the country?

## ANSWER

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

(a) & (b): 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 of the Khadi and Village Industries Commission (KVIC) and are broadly classified into six groups for the purpose of implementation of its programmes as follows:

- i. Agro Based & Food Processing Industry (ABFPI)
- ii. Mineral Based Industry (MBI)
- iii. Wellness & Cosmetics Industry
4. iv.
5. Handmade Paper, Leather & Plastic Industry (HPLPI)
- v. Rural Engineering and New Technology Industry (RENTI)
- vi. Service Industry

Ministry of MSME is promoting setting up of Village industries and supporting their growth through following schemes:

1. Prime  Minister's  Employment  Generation  Programme  (PMEGP):  PMEGP  is  a  creditlinked  subsidy  programme  implemented  by  Ministry  of  MSME,  through  Khadi  and  Village Industries Commission (KVIC), for generation of employment opportunities through establishment of micro enterprises in non-farm sector.

Under PMEGP, General Category beneficiaries can avail 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 Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Transgenders, Ex-servicemen,  Differently  Able,  beneficiaries  belonging  to  Northeastern  Region,  Aspirational District,  Hill  and  Border  areas, etc.,  the  Margin  Money  subsidy is 35% in rural areas and 25% in urban area. The maximum cost of project is Rs.50 lakhs in the manufacturing sector and Rs.20 lakhs in the service sector.

Assistance is given to the existing micro units setup under PMEGP for upgradation through 2 nd financial  assistance  of  upto  Rs.  1  cr.  with  subsidy  upto  15%  (20%  for  NER  and  Hill  areas). Besides,  regular  handholding  through  experts  is  provided  to  the  existing  entrepreneurs  on  various financial, marketing and operational aspects for scaling up their units.

Under PMEGP, around 80% of the total units are in rural areas, whereas ~14% of total units are in Aspirational districts. Further, nearly 50% of the total units are owned by women and SC/ST entrepreneurs.

Since its inception in 2008, more than 8.64 lakhs enterprises have been assisted generating a total estimated employment of around 70 lakhs. Around Rs. 21,714 cr. has been disbursed till date (as on 20.03.2023) as Margin Money subsidy under PMEGP.

2. Gramodyog Vikas Yojana: KVIC, under various components of the scheme, imparts skill development training  to  rural  and  traditional  artisans  in  various  industries  and  provide  them  with advanced tools and equipment to promote entrepreneurship among rural people:
- i. Honey  Mission  scheme  promotes  Bee  Keeping  activities  and  provide  self-sustaining employment opportunities among farmers, adivasies and unemployed youth in rural India, especially in economically backward and remote areas. Under the scheme, beneficiaries are provided with 10 bee boxes with live bee colonies, tool kit and training. From 2017-18 till 2022-23 (31.12.22) - 177039 bee boxes have been distributed to 17823 beekeepers.
- ii. Kumbhar  Sashaktikaran  Programmesupports  rural  potters through distribution of Electric Pottery Wheels along-with other tools and equipment, training, etc. From 2018-19 till  2022-23  (31.01.23)  -  24,410  electric  pottery  wheels  have  been  distributed  to  trained potters under this programme.
- iii. Agarbatti Programme includes oil & soap industry, aromatic oil & fragrances, cosmetic & beauty products, etc. Under the scheme,10 days training is provided to agarbatti manufacturing  artisans  through  master  trainers  and  are  provided  with  agarbatti  machines (automatic  and  manual),  toolkit  and  equipment  to  individual  beneficiaries/artisans.  From 2020-21  till  31.01.2023,  1000  beneficiaries  have  been  trained  and  provided  with  pedal operated agarbatti making machine.
- iv. Leather Footwear activity provides machine/tools and 25 days training to artisans.  From 2018-19 till 09.02.2023, 3094 beneficiaries have been assisted with tools and equipment.
3. Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI):  Under  this scheme, traditional industries and artisans are organized into collective manufacturing enterprises for making  value  added  traditional  products  and  provide  the  artisans  with  enhanced  sustainable employment.  Assistance  is  provided  for  establishment  of  Common  Facility  Centers  (CFCs), procurement of new machineries, along with skill upgradation, marketing and design support, etc. The  major  sectors  covered  under  SFURTI  include  handicrafts,  textiles,  bamboo,  agro-processing, honey, khadi, coir, etc.

A total of 498 clusters have been approved under SFURTI since 2015-16, with a total Government of India assistance of Rs. 1292.24 cr., directly benefitting 2.94 lakh artisans across the country.

In addition to the above schemes, Ministry/ KVIC provides assistance to existing village/rural industries as given below:

- i. KVIC has started online selling of all KVI products through www.ekhadiindia.com, www.khadiindia.gov.in., leading to  enhanced business and creation of additional employment.
- ii. KVIC  facilitates marketing  support, organise exhibitions where  the institutions and entrepreneurs can sell and display their products.
- iii. Selected entrepreneurs and artisans engaged in production of unique and quality products are also given financial assistance to participate in International Exhibitions.