Lok Sabha Question No. 838 (UNSTARRED), answered on 2023-12-07
Subject: Cottage Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ramcharan Bohra

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

## LOK SABHA UNSTARRED QUESTION NO. 838 TO BE ANSWERED ON 07.12.2023

## COTTAGE INDUSTRIES

## 838. SHRI RAMCHARAN BOHRA:

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

- (a) the current status of Cottage Industries in the country, particularly in Rajasthan;
- (b) the efforts being made by the Government to promote such industries;
- (c) whether  the  Government  has  formulated  any  plan  to  revive  and  promote  the  Domestic  Cottage Industries which are on the verge of extinction;
- (d) if so, the details thereof, State-wise; and
- (e) if not, the proposal under consideration of the Government in this regard?

## 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 groups for the purpose  of implementation of its programmes such as (i) Agro Based & Food Processing Industry (ABFPI), (ii) Mineral Based Industry (MBI), (iii) Wellness & Cosmetics Industry, (iv) Handmade Paper, Leather & Plastic Industry (HPLPI), (v) Rural Engineering and New Technology Industry (RENTI), (vi) Service Industry and (vii) Textiles Industry.

Ministry  of  MSME  is  promoting  cottage  industries  across  the  country  through  the  following schemes:

1. Prime  Minister's  Employment  Generation  Programme  (PMEGP): PMEGP  is  a  credit-linked subsidy  programme  for  generating  self-employment  opportunities  through  establishment  of  micro enterprises, including village industries, throughout the country.
2. 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.
3. Khadi Vikas Yojana (KVY): The scheme aims to increase productivity and wages of khadi artisans and secure their livelihood. It also assists in improving infrastructure for khadi production and thereby increasing its production and sales.
4.  Gramodyog Vikas Yojana (GVY): The  scheme  aims  to  revive  traditional  and  inherent  skills  of rural  artisans  by  imparting  advanced  skill  development  training  along-with  distribution  of  modern toolkits.
5. Coir  Vikas  Yojana  (CVY): The  scheme  aims  to  support  growth  of  coir  industry  and  promote sustainable employment of coir workers.

The  current  status  of  cottage  industries  in  the  country  and  particularly  in  Rajasthan  State  for  the above schemes is placed in Annexure I .

(c) to (e): Yes,  sir.  The  Government  has  taken  following  initiatives  to  revive  and  promote  domestic cottage industries across the country:

- i. Under PMEGP, General Category beneficiaries can avail of Margin Money (MM) 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, Ex-servicemen, Differently-abled,  Transgenders,  beneficiaries  belonging  to  Northeastern  Region,  Hill  and  Border areas, and Aspirational Districts, 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.
- ii. Under  SFURTI,  assistance  is  provided  for  establishment  of  Common  Facility  Centers  (CFCs), procurement of new machineries, along with skill upgradation, marketing and design support, etc. Support is provided up to Rs. 2.50 crore (Regular Cluster) for clusters up to 500 artisans and Rs. 5.00 crore (Major Cluster) for clusters with more than 500 artisans. The major sectors covered under SFURTI include handicrafts, textiles, bamboo, agro-processing, honey, khadi, coir, etc.
- iii.  Under  KVY,  assistance  is  provided  to  Khadi  Institutions  and  artisans  through  schemes  such  as Modified  Marketing  Development  Assistance  (MMDA),  Interest  Subsidy  Eligibility  Certificate (ISEC),  Workshed  Scheme  for  Khadi  Artisans,  Strengthening  of  Infrastructure  of  Existing  weak Khadi  Institutions  and  Assistance  for  Marketing  Infrastructure,  etc.,  to  increase  Khadi  production and provide sustainable employment to Khadi workers.
- iv.  Under GVY, skill development training and advanced tools and equipment are provided to rural and traditional  artisans  for  promoting  entrepreneurship  among  rural  people  in  bee-keeping  activities, pottery, agarbatti manufacturing, leather footwear activities, etc. These include components such as Honey Mission, Kumhar Sashaktikaran Programme, etc.
- v. Under  CVY,  sustainable  employment  is  generated  in  Coir  industry  through  various  components focusing on skill upgradation, domestic and export market promotion, technological upgradation and welfare of coir artisans particularly women.

Besides, the Ministry of Textiles is administering the schemes of National Handloom Development Programme and Raw Material Supply Scheme. Under the National Handloom Development Programme, clusters  are  identified  and  financially  assisted  through  various  interventions  like  provision  of  upgraded looms  &  accessories,  solar  lighting  units,  construction  of  workshed,  product  &  design  development, technical  and  common  infrastructure,  marketing  of  handloom  products  in  domestic/overseas  markets, concessional  loans  under  MUDRA  Scheme,  social  security  for  the  beneficiaries,  etc.  Under  the  Raw Material Supply Scheme, the Ministry provides transport subsidy, for transportation of yarn to the doorstep of the beneficiary, and 15% Price Subsidy on Cotton Hank Yarn, Domestic Silk, Woollen and Linen yarn and blended yarn of natural fibres.

Details of State-wise performance of PMEGP, SFURTI, GVY, KVY and CVY are given at Annexure II .

## Annexure I: referred to in reply to part (a) & (b) of the Lok Sabha Unstarred Question No. 838 for answer on 07.12.2023

Details of units assisted and estimated employment generated under PMEGP since inception in 2008-09 and till 30.11.2023 in the country and particularly in Rajasthan State are given below:

| States/ UT   |   Units assisted | Estimated employment generated   |
|--------------|------------------|----------------------------------|
| India        |           916230 | 74.86 lakh persons               |
| Rajasthan    |            31573 | 2.60 lakh persons                |

Details of functional clusters and artisans covered under SFURTI since 2015-16 and till 30.11.2023 in the country and particularly in Rajasthan State are given below:

| States/ UT   |   No. of functional clusters |   Artisans covered |
|--------------|------------------------------|--------------------|
| India        |                          358 |             209670 |
| Rajasthan    |                           20 |              11361 |

Details of registered Khadi Institutions and Khadi Artisans as on 31.03.2023 in the country and particularly in Rajasthan State are given below:

| States/ UT   |   No. of registered Khadi Institutions |   No. of Khadi Artisans engaged |
|--------------|----------------------------------------|---------------------------------|
| India        |                                   2913 |                          498498 |
| Rajasthan    |                                    182 |                           30589 |

Number of beneficiaries under GVY as on 31.03.2023 in the country and particularly in Rajasthan State are given below:

| States/ UT   |   No. of beneficiaries under Honey Mission of GVY |   No. of beneficiaries under Kumhar Sashaktikaran Programme of GVY |
|--------------|---------------------------------------------------|--------------------------------------------------------------------|
| India        |                                             18631 |                                                              25940 |
| Rajasthan    |                                               784 |                                                               3695 |

Details of number coir units registered as on 31.03.2023 in the country and particularly in Rajasthan State are given below:

| States/ UT   |   No. of registered coir units |
|--------------|--------------------------------|
| India        |                          17054 |
| Rajasthan    |                              5 |

Annexure-II: referred to in reply to part (c) to (e) of the Lok Sabha Unstarred Question No. 838 for answer on 07.12.2023

Details of State-wise performance of PMEGP during 2022-23 and 2023-24 (as on 30.11.2023) are given below :

2022-23

| Sr. No.   | States/ UTs       |   Margin Money Disbursed (Rs. in Lakh) |   Number of units setup |   Estimated employment generated |
|-----------|-------------------|----------------------------------------|-------------------------|----------------------------------|
| 1         | Andaman &Nicobar  |                                 203    |                     121 |                              968 |
| 2         | Andhra Pradesh    |                               12930.3  |                    3073 |                            24584 |
| 3         | Arunachal Pradesh |                                 701.28 |                     158 |                             1264 |
| 4         | Assam             |                                5954.67 |                    2596 |                            20768 |
| 5         | Bihar             |                               12124.4  |                    4459 |                            35672 |
| 6         | Chandigarh-UT     |                                  44.52 |                      15 |                              120 |
| 7         | Chhattisgarh      |                                7493.48 |                    2543 |                            20344 |
| 8         | Delhi             |                                 471.13 |                      72 |                              576 |
| 9         | Goa               |                                 291.13 |                      66 |                              528 |
| 10        | Gujarat*          |                               24183.4  |                    3071 |                            24568 |
| 11        | Haryana           |                                6320.5  |                    1559 |                            12472 |
| 12        | Himachal          |                                3149.81 |                     930 |                             7440 |
| 13        | Jammu &Kashmir    |                               23996    |                   12023 |                            96184 |
| 14        | Jharkhand         |                                4838.22 |                    1851 |                            14808 |
| 15        | Karnataka         |                               16155.9  |                    5618 |                            44944 |
| 16        | Kerala            |                                7330.18 |                    3129 |                            25032 |
| 17        | Ladakh            |                                 376.09 |                      91 |                              728 |
| 18        | Lakshadweep       |                                   2.49 |                       2 |                               16 |
| 19        | Madhya Pradesh    |                               18132    |                    5957 |                            47656 |
| 20        | Maharashtra**     |                               13204.5  |                    3625 |                            29000 |
| 21        | Manipur           |                                1462.61 |                     545 |                             4360 |
| 22        | Meghalaya         |                                 665.87 |                     306 |                             2448 |
| 23        | Mizoram           |                                1353.99 |                     412 |                             3296 |
| 24        | Nagaland          |                                1535.39 |                     469 |                             3752 |
| 25        | Odisha            |                               10733.4  |                    3880 |                            31040 |
| 26        | Puducherry        |                                  65.55 |                      25 |                              200 |
| 27        | Punjab            |                                7251.16 |                    1564 |                            12512 |
| 28        | Rajasthan         |                               11419.2  |                    2037 |                            16296 |
| 29        | Sikkim            |                                 131.48 |                      57 |                              456 |
| 30        | Tamil Nadu        |                               17892.8  |                    6140 |                            49120 |
| 31        | Telangana         |                               10225.5  |                    2540 |                            20320 |
| 32        | Tripura           |                                1689.1  |                     703 |                             5624 |
| 33        | Uttar Pradesh     |                               37867.5  |                   11601 |                            92808 |
| 34        | Uttarakhand       |                                4632.24 |                    1803 |                            14424 |
| 35        | West Bengal       |                                7410.09 |                    2126 |                            17008 |
|           | Total             |                              272239    |                   85167 |                           681336 |

## 2023-24 (as on 30.11.2023)

| Sr. No.   | States/ UTs       |   Margin Money Disbursed (Rs. in Lakh) |   Number of units setup |   Estimated employment generated |
|-----------|-------------------|----------------------------------------|-------------------------|----------------------------------|
| 1         | Andaman &Nicobar  |                                  47.32 |                      38 |                              304 |
| 2         | Andhra Pradesh    |                               11805.3  |                    2606 |                            20848 |
| 3         | Arunachal Pradesh |                                1228.23 |                     123 |                              984 |
| 4         | Assam             |                                3648.96 |                    1319 |                            10552 |
| 5         | Bihar             |                               11235    |                    3229 |                            25832 |
| 6         | Chandigarh-UT     |                                  18.44 |                       8 |                               64 |
| 7         | Chhattisgarh      |                                3290.55 |                     981 |                             7848 |
| 8         | Delhi             |                                 258.24 |                      37 |                              296 |
| 9         | Goa               |                                 172.71 |                      38 |                              304 |
| 10        | Gujarat*          |                               24617.2  |                    2252 |                            18016 |
| 11        | Haryana           |                                4565.39 |                     781 |                             6248 |
| 12        | Himachal          |                                1903.79 |                     478 |                             3824 |
| 13        | Jammu &Kashmir    |                               17861.3  |                    8313 |                            66504 |
| 14        | Jharkhand         |                                2390.45 |                     876 |                             7008 |
| 15        | Karnataka         |                                9416.14 |                    2537 |                            20296 |
| 16        | Kerala            |                                3358.01 |                    1419 |                            11352 |
| 17        | Ladakh            |                                 394.62 |                      85 |                              680 |
| 18        | Lakshadweep       |                                   0    |                       0 |                                0 |
| 19        | Madhya Pradesh    |                                8092.45 |                    2131 |                            17048 |
| 20        | Maharashtra**     |                                6918.25 |                    1333 |                            10664 |
| 21        | Manipur           |                                 566.91 |                     248 |                             1984 |
| 22        | Meghalaya         |                                 429.83 |                     161 |                             1288 |
| 23        | Mizoram           |                                1360.81 |                     315 |                             2520 |
| 24        | Nagaland          |                                 726.21 |                     211 |                             1688 |
| 25        | Odisha            |                                4154.36 |                    1196 |                             9568 |
| 26        | Puducherry        |                                  24.38 |                       8 |                               64 |
| 27        | Punjab            |                                7594.23 |                    1055 |                             8440 |
| 28        | Rajasthan         |                                8517.41 |                    1088 |                             8704 |
| 29        | Sikkim            |                                 206.68 |                      67 |                              536 |
| 30        | Tamil Nadu        |                               11835.7  |                    3137 |                            25096 |
| 31        | Telangana         |                                7641.52 |                    1600 |                            12800 |
| 32        | Tripura           |                                 893.61 |                     371 |                             2968 |
| 33        | Uttar Pradesh     |                               28471.5  |                    7024 |                            56192 |
| 34        | Uttarakhand       |                                2995.68 |                     910 |                             7280 |
| 35        | West Bengal       |                                3368.04 |                     894 |                             7152 |
|           | Total             |                              190009    |                   46869 |                           374952 |

## Details  of  State-wise  performance  of  SFURTI  scheme  since  2015-16  and  till  30.11.2023  are  given below:

| S. No.   | State             |   Total Artisans |   Total Functional Clusters |
|----------|-------------------|------------------|-----------------------------|
| 1        | Andhra Pradesh    |            11121 |                          13 |
| 2        | Arunachal Pradesh |             1024 |                           3 |
| 3        | Assam             |            16893 |                          32 |
| 4        | Bihar             |             5482 |                           8 |
| 5        | Chhattisgarh      |             2819 |                           4 |
| 6        | Gujarat           |             5580 |                          11 |
| 7        | Haryana           |             2446 |                           4 |
| 8        | Himachal pradesh  |              551 |                           3 |
| 9        | Jammu &Kashmir    |             1228 |                           2 |
| 10       | Jharkhand         |             3900 |                           8 |
| 11       | Karnataka         |            11171 |                          19 |
| 12       | Kerala            |             8397 |                           9 |
| 13       | Madhya Pradesh    |            17453 |                          35 |
| 14       | Maharashtra       |            10934 |                          18 |
| 15       | Manipur           |             8699 |                          19 |
| 16       | Meghalaya         |             1310 |                           4 |
| 17       | Mizoram           |              304 |                           1 |
| 18       | Nagaland          |             2747 |                           7 |
| 19       | Odisha            |            24186 |                          40 |
| 20       | Punjab            |             1708 |                           2 |
| 21       | Rajasthan         |            11361 |                          20 |
| 22       | Sikkim            |              872 |                           4 |
| 23       | Tamil Nadu        |            21087 |                          18 |
| 24       | Telangana         |             5643 |                          12 |
| 25       | Tripura           |              804 |                           2 |
| 26       | Uttar Pradesh     |            21707 |                          41 |
| 27       | Uttarakhand       |             2103 |                           4 |
| 28       | West Bengal       |             8140 |                          15 |
|          | TOTAL             |           209670 |                         358 |

## Details of State-wise Beneficiaries benefitted under Kumbhar Sashkatikaran Programme and Honey Mission of Gramodyog Vikas Yojana from 2017-18 to 2022-23

| Sr. No.   | State/ Union Territories   | Kumbhar Sashkatikaran Programme (2017-18 to 2022-23)   | Kumbhar Sashkatikaran Programme (2017-18 to 2022-23)   | Honey Mission (2017-18-2022-23)   | Honey Mission (2017-18-2022-23)   |
|-----------|----------------------------|--------------------------------------------------------|--------------------------------------------------------|-----------------------------------|-----------------------------------|
| Sr. No.   | State/ Union Territories   | Electric Wheel Distributed                             | Pottery Artisans Benefited                             | No. of Beneficiaries              | No. of Bee Boxes Distribution     |
| 1.        | Jammu &Kashmir             | 740                                                    | 2960                                                   | 815                               | 8150                              |
| 2.        | Himachal Pradesh           | 380                                                    | 1520                                                   | 574                               | 5740                              |
| 3.        | Punjab                     | 260                                                    | 1040                                                   | 50                                | 500                               |
| 4.        | Chandigarh (UT)            | 0                                                      | 0                                                      | 410                               | 4100                              |
| 5.        | Haryana                    | 880                                                    | 3520                                                   | 555                               | 5550                              |
| 6.        | Delhi                      | 75                                                     | 300                                                    | 40                                | 565                               |
| 7.        | Rajasthan                  | 3695                                                   | 14780                                                  | 784                               | 7840                              |
| 8.        | Uttarakhand                | 200                                                    | 800                                                    | 820                               | 8200                              |
| 9.        | Uttar Pradesh              | 5800                                                   | 23200                                                  | 2285                              | 22846                             |
| 10.       | Chhattisgarh               | 380                                                    | 1520                                                   | 433                               | 4330                              |
| 11.       | Madhya Pradesh             | 530                                                    | 2120                                                   | 525                               | 5250                              |
| 12.       | Sikkim                     | 0                                                      | 0                                                      | 5                                 | 50                                |
| 13.       | Arunachal Pradesh          | 0                                                      | 0                                                      | 35                                | 350                               |
| 14.       | Nagaland                   | 90                                                     | 360                                                    | 590                               | 5900                              |
| 15.       | Manipur                    | 140                                                    | 560                                                    | 580                               | 5800                              |
| 16.       | Mizoram                    | 0                                                      | 0                                                      | 750                               | 7500                              |
| 17.       | Tripura                    | 445                                                    | 1780                                                   | 450                               | 4500                              |
| 18.       | Meghalaya                  | 120                                                    | 480                                                    | 435                               | 4350                              |
| 19.       | Assam                      | 870                                                    | 3480                                                   | 601                               | 6010                              |
| 20.       | Bihar                      | 955                                                    | 3820                                                   | 1085                              | 10850                             |
| 21.       | West Bengal                | 680                                                    | 2720                                                   | 575                               | 5750                              |
| 22.       | Jharkhand                  | 480                                                    | 1920                                                   | 585                               | 5850                              |
| 23.       | Odisha                     | 835                                                    | 3340                                                   | 462                               | 4613                              |
| 24.       | Gujarat                    | 1160                                                   | 4640                                                   | 1031                              | 9310                              |
| 25.       | Maharashtra                | 3252                                                   | 13008                                                  | 987                               | 9870                              |
| 26.       | Goa                        | 180                                                    | 720                                                    | 53                                | 315                               |
| 27.       | Andhra Pradesh             | 750                                                    | 3000                                                   | 468                               | 4680                              |
| 28.       | Karnataka                  | 1113                                                   | 4452                                                   | 798                               | 7850                              |
| 29.       | Kerala                     | 100                                                    | 400                                                    | 740                               | 7400                              |
| 30.       | Tamil Nadu                 | 1115                                                   | 4460                                                   | 775                               | 7750                              |
| 31.       | Telangana                  | 715                                                    | 2860                                                   | 335                               | 3350                              |
|           | GRAND TOTAL                | 25940                                                  | 103760                                                 | 18631                             | 185119                            |

## Details of State-wise number of beneficiaries under Khadi Vikas Yojana (as on 31.03.2023)

| Sr. No.   | STATES / UNION TERRITORIES   |   No. of registered KIs under Khadi Sector |   No. of Khadi Artisans (Employment under Khadi) |
|-----------|------------------------------|--------------------------------------------|--------------------------------------------------|
| 1         | Jammu &Kashmir               |                                        109 |                                            21997 |
| 2         | Himachal Pradesh             |                                         19 |                                             3376 |
| 3         | Punjab                       |                                         33 |                                             5191 |
| 4         | Chandigarh (UT)              |                                          1 |                                               54 |
| 5         | Haryana                      |                                        131 |                                            56175 |
| 6         | Delhi                        |                                         10 |                                             1180 |
| 7         | Rajasthan                    |                                        182 |                                            30589 |
| 8         | Uttarakhand                  |                                         83 |                                            18060 |
| 9         | Uttar Pradesh                |                                        775 |                                           137218 |
| 10        | Chhattisgarh                 |                                         25 |                                             6163 |
| 11        | Madhya Pradesh               |                                         52 |                                             3707 |
| 12        | Sikkim                       |                                          0 |                                               28 |
| 13        | Arunachal Pradesh            |                                          5 |                                               31 |
| 14        | Nagaland                     |                                          1 |                                              295 |
| 15        | Manipur                      |                                          5 |                                              168 |
| 16        | Mizoram                      |                                          0 |                                               12 |
| 17        | Tripura                      |                                          1 |                                               25 |
| 18        | Meghalaya                    |                                          1 |                                               59 |
| 19        | Assam                        |                                         23 |                                             5119 |
| 20        | Bihar                        |                                        147 |                                            72937 |
| 21        | West Bengal                  |                                        367 |                                            32656 |
| 22        | Jharkhand                    |                                         35 |                                             1869 |
| 23        | Odisha                       |                                         73 |                                             5347 |
| 24        | Andaman &Nicobar Islands     |                                          0 |                                                0 |
| 25        | Gujarat                      |                                        226 |                                            18891 |
| 26        | Maharashtra                  |                                         40 |                                             3091 |
| 27        | Goa                          |                                          0 |                                                0 |
| 28        | Andhra Pradesh               |                                        159 |                                             9076 |
| 29        | Telangana                    |                                         35 |                                             2347 |
| 30        | Karnataka                    |                                        262 |                                            27612 |
| 31        | Lakshadweep Islands          |                                          0 |                                                0 |
| 32        | Kerala                       |                                         31 |                                            14379 |
| 33        | Tamil Nadu                   |                                         80 |                                            20381 |
| 34        | Puducherry                   |                                          2 |                                              465 |
|           | Total                        |                                       2913 |                                           498498 |

Details of State-wise coir units registered under Coir Vikas Yojana (as on 31.03.2023)

| S. No.   | State/UT          |   Cumulative number of Coir Units Registered as on 31.03.2023 |
|----------|-------------------|---------------------------------------------------------------|
| 1.       | Kerala            |                                                          9258 |
| 2.       | Tamil Nadu        |                                                          4824 |
| 3.       | Andhra Pradesh    |                                                          1003 |
| 4.       | Orissa            |                                                           948 |
| 5.       | Karnataka         |                                                           730 |
| 6.       | West Bengal       |                                                            59 |
| 7.       | Pondicherry       |                                                            31 |
| 8.       | Maharashtra       |                                                            56 |
| 9.       | New Delhi         |                                                            17 |
| 10.      | Uttar Pradesh     |                                                            17 |
| 11.      | N E Region        |                                                            60 |
| 12.      | UT of Lakshadweep |                                                            16 |
| 13.      | Goa               |                                                             4 |
| 14.      | Gujarat           |                                                            11 |
| 15.      | Andaman &Nicobar  |                                                             3 |
| 16.      | Rajasthan         |                                                             5 |
| 17.      | Haryana           |                                                             2 |
| 18.      | Punjab            |                                                             5 |
| 19.      | Madhya Pradesh    |                                                             3 |
| 20.      | Jammu &Kashmir    |                                                             2 |
|          | Total             |                                                         17054 |