Lok Sabha Question No. 2856 (UNSTARRED), answered on 2024-08-08
Subject: Employment Generation through KVIC
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Manish Jaiswal

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

## LOK SABHA UNSTARRED QUESTION No. 2856

TO BE ANSWERED ON 08.08.2024

## EMPLOYMENT GENERATION THROUGH KVIC

2856. SHRI MANISH JAISWAL:

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

- (a) whether the Government has taken measures to generate employment opportunities through the Khadi and Village Industries Commission (KVIC) in Jharkhand and if so, the details thereof;
- (b) the  number  of  employment  opportunities  created  by  KVIC  in  Jharkhand  during  the  last  three years, district-wise including Hazaribagh;
- (c) the funds allocated and utilized under KVIC projects in Jharkhand during the last three years;
- (d) the  specific  initiatives  undertaken  by  KVIC  to  promote  khadi  and  village  industries  in Jharkhand; and
- (e) the future plans of the Government to further enhance employment opportunities through KVIC in Jharkhand?

## ANSWER

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

(a) to (c): Ministry  of  MSME  through  Khadi  and  Village  Industries  Commission  (KVIC)  is implementing  the  following  schemes  to  promote  livelihood  and  for  generation  of  employment opportunities in the rural and urban areas of the country including the state of  Jharkhand:

## 1. Prime Minister's Employment Generation Programme (PMEGP):

1.  Government through the Ministry of MSME has been implementing a major credit-linked subsidy programme viz. Prime Minister's Employment Generation Programme (PMEGP) being implemented  through  Banks  since  2008-09  with  Khadi  and  Village  Industries  Commission (KVIC) as nodal agency at the national level for generating employment in the Country by setting up of micro-enterprises.

Under PMEGP, general category beneficiaries can avail of 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, ex-servicemen, Transgenders,  differently  abled,  beneficiaries  belonging  to  North  Eastern  Region,  aspirational districts, hill and border areas (as notified by the Government), 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.  Own  contribution  of  beneficiaries under Special Category is 05% and 10% for General Category beneficiaries.

Since 2018-19, existing PMEGP/Rural Employment Generation Programme/MUDRA enterprises are also supported based on past good performances with 2nd loan for upgradation and expansion. Under  2nd  Loan,  maximum  project  cost  admissible  for  Margin  Money  (MM)  subsidy  under Manufacturing sector is Rs. 1.00 crore and under Service sector is Rs. 25 Lakhs. Eligible subsidy on 2nd loan for all categories is 15% of project cost (20% for NER & Hill States).

The  details  regarding  employment  opportunities  created  by  KVIC  under  PMEGP  &  funds allocated  and  utilized  under  PMEGP  in  Jharkhand  during  the  last  three  years,  district-wise including Hazaribagh have been annexed .

2. Gramodyog Vikas Yojana: Gramodyog Vikas Yojana (GVY) is one of the components of Khadi Gramodyog Vikas Yojana (KGVY) for promotion and development of village industries through common  facilities,  technological  modernization,  training  etc.  &  other  support  and  services  for promotion of village Industries. The following programmes are implemented under GVY:
- i. Kumbhar Sashaktikaran Programme: -KVIC launched Kumbhar Sashaktikaran Programme from the year 2018-19 to uplift the rural pottery traditional artisan's livelihood by enhancing their income. Under this programme, Electric Potter Wheel and skill up-gradation training of 10 days is provided to artisans.

## Performance of Kumbhar Sashaktikaran Programme during the last three years in Jharkhand

|   Sr. No. | Financial Year        | No. of electric pottery wheels and other equipment distributed   | No. of Pottery Artisans Benefited   |
|-----------|-----------------------|------------------------------------------------------------------|-------------------------------------|
|         1 | 2021-22               | -                                                                | -                                   |
|         2 | 2022-23               | 100                                                              | 400                                 |
|         3 | 2023-24 (Provisional) | 42                                                               | 168                                 |

- ii. Honey  Mission:  KVIC  launched  Honey  Mission  Programme  from  the  year  2017-18  to supplement the income of farmers and unemployed youths. Under Honey Mission Programme,  10  days  training  is  provided  to  prospective  beekeepers/entrepreneurs/farmers along with bee boxes and bee colonies.

## Performance of Honey Mission during the last three years in Jharkhand

|   Sr. No. | Financial Year        |   No. of beneficiaries benefited |   No. of Bee- Boxes with hives distributed |
|-----------|-----------------------|----------------------------------|--------------------------------------------|
|         1 | 2021-22               |                               50 |                                        500 |
|         2 | 2022-23               |                               50 |                                        500 |
|         3 | 2023-24 (Provisional) |                               60 |                                        600 |

- iii. Leather Craft Artisans Empowerment Programme : The objective of the programme is to uplift  the  leather  craft  artisans'  livelihood  by  providing  training  for  skill  up-gradation  and new home-scale energy-efficient tool kits for producing goods quality of the products.

## Performance of Leather Programme during the last three years in Jharkhand

|   Sr. No | Financial Year        |   No. of Beneficiaries Benefitted |
|----------|-----------------------|-----------------------------------|
|        1 | 2021-22               |                                70 |
|        2 | 2022-23               |                                85 |
|        3 | 2023-24 (Provisional) |                                85 |

3. Khadi  Vikas  Yojana  (KVY): The  Scheme  is  implemented  for  promotion  and  development  of Khadi  sector  i.e.  Cotton,  Woollen,  Silk  through  the  existing  schemes  like  (1)  Modified  Market Development Assistance (MMDA), (2) Interest Subsidy Eligibility Certificate (ISEC), etc.
- i. Modified  Market  Development  Assistance  (MMDA): Modified  Market  Development Assistance (MMDA) for Cotton/Muslin, Wool and Polyvastra shall be calculated @ 35% on Prime Cost and for Silk Khadi @ 20% on Prime Cost which includes cost of raw material plus conversion charges upto grey cloth plus processing charges without margins.

## Performance of MMDA during last three years in Jharkhand State

|   Sr. No. | Financial Years       |   No. of Khadi Institutions |   Fund Disbursed (Rs in Lakhs) |
|-----------|-----------------------|-----------------------------|--------------------------------|
|         1 | 2021-22               |                           5 |                          31.52 |
|         2 | 2022-23               |                           7 |                          77.15 |
|         3 | 2023-24 (Provisional) |                           5 |                          34.4  |

- ii. Interest Subsidy Eligibility Certification (ISEC) scheme : ISEC is issued by the KVIC to the eligible Khadi Institutions on the basis of their level of production and sales, and the estimated requirement of funds in accordance with the prescribed pattern of Assistance.

Under the scheme an interest of 4% per annum is to be borne by the Khadi Institutions and remaining by the KVIC from budgetary sources provided by Government of India. The scheme is applicable only for Khadi and Polyvastra.

## Performance of ISEC during last three years Jharkhand State

|   Sr. No. | Financial Years       | ISECs availed   | Inter Subsidy paid (Rs. In Lakhs)   |
|-----------|-----------------------|-----------------|-------------------------------------|
|         1 | 2021-22               | -               | -                                   |
|         2 | 2022-23               | 2               | 5.69                                |
|         3 | 2023-24 (Provisional) | 2               | 0.34                                |

(d): Following have been taken by KVIC to promote Khadi and Village Industries throughout the country including the state of Jharkhand:

- i. Webinars were organized on various activities for setting up of micro-enterprises.
- ii. Short film featuring successful entrepreneurs.
- iii. Radio jingles in regional languages to create awareness.
- iv. Targeted publicity of PMEGP through rural post offices.
- v. The prospective entrepreneurs and beneficiaries can opt for the mode of training and choose the training centre for offline mode of their choice.
- vi. For  filing  up  the  application  form,  six  regional  languages  have  been  made  available  on  the PMEGP portal.
- vii. KVIC  provides  marketing  support  and  organizes  exhibitions  where  the institutions and entrepreneurs can sell and display their products.

(e): The  achievable  targets  have  been  earmarked  under  action  plan  of  KVY  and  GVY  to  further enhance employment opportunities in Jharkhand. Under PMEGP , an interim target of supporting 1,540 new micro-enterprises in Jharkhand has been set for the financial year 2024-25.

****

Annexure: Referred to in Reply to part (a) to (c) of Lok Sabha Unstarred Question no. 2856 for answer on 08.08.2024.

## PMEGP in Jharkhand:

PMEGP performance in  Jharkhand  during  the  last  3  years  in  terms  of  no.  of  units  assisted,  margin money (MM) subsidy disbursed and estimated employment generated is given below:

|   S. No. | Financial Year   | No. of Units Assisted   | Estimated Employment Generated   |   MMSubsidy (Rs. Cr) |
|----------|------------------|-------------------------|----------------------------------|----------------------|
|        1 | FY 2021-22       | 1,714                   | 13,712                           |                41.87 |
|        2 | FY 2022-23       | 1,851                   | 14,808                           |                48.37 |
|        3 | FY 2023-24       | 2,101                   | 16,808                           |                51.23 |

PMEGP performance in Jharkhand during FY 2023-24 in terms of no. of units assisted, margin money (MM) subsidy disbursed and estimated employment generated is given below:

| S. No.   | District Name       | No. of Units Assisted   | Estimated Employment Generated   | Margin Money Subsidy (Rs. Lakh)   |
|----------|---------------------|-------------------------|----------------------------------|-----------------------------------|
| 1        | Ranchi              | 232                     | 1856                             | 564.42                            |
| 2        | Giridih             | 170                     | 1360                             | 335.80                            |
| 3        | Hazaribag           | 162                     | 1296                             | 549.75                            |
| 4        | Dumka               | 154                     | 1232                             | 262.93                            |
| 5        | Godda               | 136                     | 1088                             | 389.05                            |
| 6        | Deoghar             | 120                     | 960                              | 326.55                            |
| 7        | Purbi Singhbhum     | 117                     | 936                              | 383.49                            |
| 8        | Sahibganj           | 111                     | 888                              | 137.06                            |
| 9        | Bokaro              | 96                      | 768                              | 341.22                            |
| 10       | Dhanbad             | 91                      | 728                              | 242.76                            |
| 11       | Palamu              | 79                      | 632                              | 187.01                            |
| 12       | Saraikela Kharswan  | 72                      | 576                              | 178.51                            |
| 13       | Lohardaga           | 67                      | 536                              | 113.18                            |
| 14       | Pashchimi Singhbhum | 64                      | 512                              | 150.60                            |
| 15       | Koderma             | 57                      | 456                              | 106.25                            |
| 16       | Ramgarh             | 56                      | 448                              | 231.53                            |
| 17       | Pakur               | 51                      | 408                              | 66.97                             |
| 18       | Simdega             | 49                      | 392                              | 83.72                             |
| 19       | Gumla               | 43                      | 344                              | 90.71                             |
| 20       | Chatra              | 39                      | 312                              | 93.03                             |
| 21       | Jamtara             | 38                      | 304                              | 62.76                             |
| 22       | Garhwa              | 35                      | 280                              | 99.36                             |
| 23       | Khunti              | 35                      | 280                              | 56.26                             |
| 24       | Latehar             | 27                      | 216                              | 70.34                             |
|          | Total               | 2,101                   | 16,808                           | 5,123.26                          |

PMEGP performance in Jharkhand during FY 2022-23 in terms of no. of units assisted, margin money (MM) subsidy disbursed and estimated employment generated is given below:

| S. No.   | District Name       | No. of Units Assisted   | Estimated Employment Generated   | Margin Money Subsidy (Rs. Lakh)   |
|----------|---------------------|-------------------------|----------------------------------|-----------------------------------|
| 1        | Hazaribag           | 155                     | 1,240                            | 505.97                            |
| 2        | Ranchi              | 121                     | 968                              | 432.33                            |
| 3        | Bokaro              | 108                     | 864                              | 359.26                            |
| 4        | Purbi Singhbhum     | 108                     | 864                              | 272.62                            |
| 5        | Dhanbad             | 102                     | 816                              | 329.28                            |
| 6        | Sahibganj           | 99                      | 792                              | 161.52                            |
| 7        | Giridih             | 90                      | 720                              | 255.84                            |
| 8        | Palamu              | 77                      | 616                              | 213.83                            |
| 9        | Ramgarh             | 77                      | 616                              | 326.25                            |
| 10       | Lohardaga           | 76                      | 608                              | 145.57                            |
| 11       | Pashchimi Singhbhum | 76                      | 608                              | 203.69                            |
| 12       | Pakur               | 75                      | 600                              | 111.22                            |
| 13       | Jamtara             | 73                      | 584                              | 121.97                            |
| 14       | Saraikela Kharswan  | 73                      | 584                              | 142.34                            |
| 15       | Deoghar             | 72                      | 576                              | 233.88                            |
| 16       | Godda               | 68                      | 544                              | 163.61                            |
| 17       | Koderma             | 62                      | 496                              | 122.12                            |
| 18       | Dumka               | 58                      | 464                              | 120.18                            |
| 19       | Chatra              | 55                      | 440                              | 113.44                            |
| 20       | Khunti              | 51                      | 408                              | 91.60                             |
| 21       | Gumla               | 49                      | 392                              | 135.19                            |
| 22       | Simdega             | 47                      | 376                              | 106.82                            |
| 23       | Latehar             | 42                      | 336                              | 80.03                             |
| 24       | Garhwa              | 37                      | 296                              | 89.10                             |
|          | Total               | 1,851                   | 14,808                           | 4,837.66                          |

PMEGP performance in Jharkhand during FY 2021-22 in terms of no. of units assisted, margin money (MM) subsidy disbursed and estimated employment generated is given below:

| S. No.   | District Name       | No. of Units Assisted   | Estimated Employment Generated   | Margin Money Subsidy (Rs. Lakh)   |
|----------|---------------------|-------------------------|----------------------------------|-----------------------------------|
| 1        | Dhanbad             | 122                     | 976                              | 324.92                            |
| 2        | Purbi Singhbhum     | 118                     | 944                              | 280.68                            |
| 3        | Hazaribag           | 115                     | 920                              | 363.52                            |
| 4        | Ranchi              | 108                     | 864                              | 310.89                            |
| 5        | Dumka               | 107                     | 856                              | 265.83                            |
| 6        | Giridih             | 103                     | 824                              | 248.72                            |
| 7        | Godda               | 101                     | 808                              | 256.60                            |
| 8        | Sahibganj           | 93                      | 744                              | 203.92                            |
| 9        | Deoghar             | 82                      | 656                              | 191.71                            |
| 10       | Bokaro              | 77                      | 616                              | 289.18                            |
| 11       | Lohardaga           | 69                      | 552                              | 100.71                            |
| 12       | Pashchimi Singhbhum | 62                      | 496                              | 124.70                            |
| 13       | Saraikela Kharswan  | 61                      | 488                              | 121.31                            |
| 14       | Jamtara             | 57                      | 456                              | 99.67                             |
| 15       | Khunti              | 56                      | 448                              | 87.17                             |
| 16       | Palamu              | 56                      | 448                              | 152.50                            |
| 17       | Ramgarh             | 51                      | 408                              | 168.39                            |
| 18       | Pakur               | 44                      | 352                              | 97.72                             |
| 19       | Koderma             | 43                      | 344                              | 93.70                             |
| 20       | Simdega             | 41                      | 328                              | 74.53                             |
| 21       | Garhwa              | 40                      | 320                              | 89.97                             |
| 22       | Latehar             | 40                      | 320                              | 58.51                             |
| 23       | Chatra              | 34                      | 272                              | 80.55                             |
| 24       | Gumla               | 34                      | 272                              | 102.34                            |
|          | Total               | 1,714                   | 13,712                           | 4,187.74                          |