Lok Sabha Question No. 1778 (UNSTARRED), answered on 2024-08-01
Subject: Cottage Industries in Tamil Nadu
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Selvam G

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 1778

TO BE ANSWERED ON 01.08.2024

## COTTAGE INDUSTRIES IN TAMIL NADU

## 1778. SHRI SELVAM G:

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

- (a) whether  the  government  is  implementing  schemes  to  promote  cottage  industries  in  Tamil Nadu and if so, the details thereof;
- (b) whether the government has assessed the contribution of small scale and cottage industries in the economic development and Gross domestic Product (GDP) of the country and if so, the details thereof;
- (c) whether the government is aware of the fact that encouraging small and cottage industries in rural, tribal and semi-urban areas would create employment opportunities for locals and prevent them from migrating and if so, the details thereof;
- (d) the details of the initiatives taken by the Government in this regard;
- (e) whether the government has formulated any scheme for revival and promotion of domestic cottage industries in Tamil Nadu which are on the verge of extinction 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 (SUSHRI SHOBHA KARANDLAJE)

- (a): Ministry of MSME is promoting cottage and village 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.

- (b): As per the data available, the contribution of MSME sector including small scale and cottage industries is estimated at around29%of GDP of the country.
- (c) and (d): Yes, Sir. The government has taken following initiatives for encouraging small and cottage industries in rural, tribal and semi-urban areas to create employment opportunities for locals and prevent them from migrating:
- 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, Exservicemen,  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 lakh in the manufacturing sector and Rs. 20 lakh 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. Financial assistance is provided up to Rs. 2.50 Crore (regular cluster) for clusters up to 500 artisans and up to 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 and footwear activities 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.
- (e): There is no special scheme for revival and promotion of domestic cottage industries in Tamil Nadu. However, PM Vishwakarma is a central sector scheme launched on 17.09.2023 for supporting traditional  artisans  and  craftspeople  in  India  by  providing  credit  support,  skill  training,  marketing support, incentive for digital transactions and toolkit incentive.

: 3 :

- (f): Following  steps  are  being  taken  by  the  Ministry  of  MSME  through  to  provide  marketing support to micro units including cottage industries:
- i. Procurement  and  Marketing  Support  (PMS)Scheme  extends  financial  benefits  for  creating market  access  initiatives  such  as  participation  in  domestic  market  exhibitions/  trade  fairs, adoption  of  modern  packaging  techniques,  development  of  retail  outlets,  etc  to  Micro  & Small Enterprises (MSEs).
- ii. KVIC  facilitates the Marketing support, organize exhibition where the institutions, entrepreneurs promoted by KVIC can sell and display their products
- iii. The cottage/village industry units / entrepreneurs are being encouraged to participate in the State Level, Zonal Level, National Level / International Level Exhibitions and International Trade Fairs.
- iv. The handholding support is being provided to unemployed youth to avail financial assistance under PMEGP from the Banks to set up their micro enterprises.
- v. The cottage industry / village industry / PMEGP Units may avail a counter in Khadi Sales Outlets throughout the country to sell their products. Further, they may avail Certificates of Registration to sell their products at various Khadi Outlets throughout the country.
- vi. Backward & Forward Linkages are being provided to the PMEGP entrepreneurs to promote them, including marketing of their products both locally and globally.
- vii. The  cottage  industry  /  village  industry  /  PMEGP  Units  may  sell  their  products  through KVIC's Online Marketing, e-commerce Portal.
- viii. Coir Board encourages coir artisans and entrepreneurs to sell their coir products through sales outlets/showrooms of Coir Board

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