Lok Sabha Question No. 2066 (UNSTARRED), answered on 2025-07-31
Subject: Khadi and Village Industries Commission
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Pratima Mondal

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2066 TO BE ANSWERED ON: 31.07.2025

## KHADI AND VILLAGE INDUSTRIES COMMISSION

2066.

SMT. PRATIMA MONDAL:

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

- (a) the  specific  measures  adopted/to  be  adopted  by  the  Government  to  streamline  the  Udyam Registration  process  and  the  steps  taken/being  taken  to  ensure  that  micro  and  small  enterprises  in rural and informal sectors are effectively onboarded;
- (b) the steps being taken to strengthen the performance and governance of the Khadi and Village Industries Commission (KVIC) and the manner in which the traditional industries are being linked to contemporary markets; and
- (c) the details of the data on the implementation and impact of the Credit Linked Capital Subsidy Scheme (CLCSS) including the sectors and regions that have benefited the most?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): On 1 st July,  2020, the  Ministry of Micro, Small and Medium Enterprise (MSME) launched Udyam Registration Portal (URP), a free of cost, paperless and fully digitalized online platform, on which an enterprise can register itself as an MSME. To formalize Informal Micro Enterprises (IMEs), Udyam  Assist  Platform  (UAP)  was  launched  on  11.01.2023,  in  collaboration  with  SIDBI  which onboard these IMEs through Designated Agencies.

Formalisation Drives are conducted by the field offices of Ministry of MSME, in coordination with MSME/ Industry Departments of States/UTs concerned and other MSME stakeholders to ensure that Micro and Small Enterprises, across the country, including in rural areas and informal sectors are effectively  onboarded.  Further,  special  drives  are  conducted  for  onboarding  of  Women-owned Enterprises under Yashasvini initiative of the Ministry.

- (b): To strengthen the performance and governance of the KVIC, following initiatives have been taken:
- i. KVIC  has  entered  into  a  Memorandum  of  Understanding  (MoU)  with  Mahatma  Gandhi Institute  for  Rural  Industrialization  (MGIRI)/Wardha,  a  dedicated  research  and  training institute  focused  on  promoting  innovation,  Science  and  Technology  interventions,  quality guidance, and entrepreneurship support for Khadi and Village Industries institutions.
- ii. Modified Market Development Assistance (MMDA) introduced w.e.f 1.10.2016 to promote accountability,  productivity,  and  artisan  welfare  in  the  Khadi  Sector.  The  MMDA  is  a production linked incentive.

- iii. Under 'Strengthening Infrastructure of existing weak Khadi Institutions (KIs) and Assistance for  Marketing  Infrastructure',  financial  assistance  is  provided  to  existing  weak  Khadi Institutions for strengthening their infrastructure and for renovation of Khadi sales outlets.
- iv. 'Workshed Scheme for Khadi Artisans' provides assistance for construction of individual as well as group workshed for better work environment.
- v. KVIC extends raw material support on credit from Departmental Central Sliver Plants (CSPs) supplying raw materials in form of sliver/roving to the needy KIs.

To  link  traditional  industries  with  contemporary  markets,  Centre  of  Excellence  for  Khadi (CoEK) has been set up on Hub and Spoke model with National  Institute of Fashion Technology (NIFT) New Delhi. CoEK provides design and product developments, capacity building support to Khadi  Institutions.  KVIC  promotes  Khadi  products  through  retail  outlets,  national  exhibitions,  ecommerce platforms, and Khadi Lounges in urban centers.

- (c): Credit Linked Capital Subsidy (CLCS) is one of the components of the Credit Linked Capital Subsidy and Technology Upgradation Scheme. CLCS aimed at facilitating technology up-gradation in Micro and Small Enterprises (MSEs) by providing an upfront capital subsidy of 15 percent to the MSEs, across the country on institutional finance availed by them for induction of well-established and improved technology in the specified sub-sectors/products  approved  under  the  scheme. Credit Linked  Capital  Subsidy  Component  was  operation  till  31.03.2020.  The  scheme  benefitted  around 87,989 units by providing them with total capital subsidy of Rs 5685.87 crore, since the inception of the Scheme in the year 2001-02.

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