Lok Sabha Question No. 3987 (UNSTARRED), answered on 2024-12-19
Subject: Digitization of Khadi Production Units
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Bhola Singh

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

## LOK SABHA UNSTARRED QUESTION No. 3987 TO BE ANSWERED ON 19.12.2024

## DIGITIZATION OF KHADI PRODUCTION UNITS

3987. DR. BHOLA SINGH:

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

- (a) the new wage levels for Khadi workers and the manner in which the Government plans to ensure wage sustainability;
- (b) the initiatives to promote the sale of Khadi and village industry products under the 'Vocal for Local' campaign;
- (c) the steps to digitize Khadi production units and improve operational efficiency; and
- (d) the  measures  to  provide  skill  development  and  financial  support  for  Khadi  cooperatives  and artisans?

## ANSWER

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

- (a): Khadi  and Village Industries Commission  (KVIC),  to  support  the  Khadi artisans, has periodically  increased  their  wages  to  improve  their  earnings  and  overall  livelihood.  With  effect  from 01.04.2023,  the  spinning  wages  was  increased  from  Rs.  7.50  per  hank  to  Rs.  10.00  per  hank  and weaving wages were raised by 10%, which not only boosted the production capacity of Khadi artisans but also significantly enhanced their earnings.

Further, KVIC has enhanced the spinning wages from Rs. 10.00 per hank to Rs. 12.50 per hank and weaving wages by 7%, effective from 02.10.2024.

Besides, under MMDA, 35% of MMDA is provided to artisans as incentive in case of Khadi Institutions  of  cotton,  woollen,  polyvastra  and  30%  quantum  of  MMDA  is  provided  to  artisans  as incentive in case of Khadi Institutions of silk.

- (b): To promote the sale of Khadi and Village  Industries  products,  following  initiatives  are  being taken by KVIC:
- i. Centre of Excellence for Khadi on the Hub and Spoke model, with National Institute of Fashion Technology (NIFT) New Delhi as Hub along with NIFT Ahmedabad, Bengaluru, Kolkata and Shillong - have been set up for establishing benchmarked design processes for global standards, creating  new  fabrics  and  products,  disseminating  quality  standards  for  fabrics,  branding  and publicity by creating interesting narratives around the new Khadi, creative visual merchandizing & packaging for new Khadi products and increasing the reach of  Khadi by organizing National Khadi Fashion Shows and Exhibitions.

- ii. Organizing various level exhibitions and participating in Indian International Trade Fair (IITF) to make KVI products accessible in the domestic.
- iii. Arranged product supply/marketing mechanism through e-Market linkage for MSMEs through GeM portal (gem.gov.in), and e-marketing portal (www.ekhadiindia.com) with an objective to sell Buyer to Consumer.
- iv. Established  Khadi  Lounges  at  various  urban  centers  and  in  Tier-II  cities  for  attracting  both connoisseurs of Khadi as well as designers.
- v. Catering  to  the  need  of  Government  departments  and  bulk  buyers  of  various  Government Organization and PSUs to increase the sales of Khadi products.
- vi. Special discount has been announced on various occasions/festivals to attract customers and to boost the sales of KVI products.
- vii. For  protecting  the  identity  of  brand  'Khadi'  globally,  KVIC  has  secured  registration  for  the Trademark 'Khadi' in 15 countries and secured registration for the Khadi Logo in 32 countries.
- viii. Publicity of KVI Schemes and programmes through print, electronic, digital and social media.
8. (c): To digitize Khadi production units and improve operational efficiency, the following steps have been taken by KVIC:
- i. Khadi  Institutions  e-PORTAL: The  KI  e-Portal  was  developed  and  implemented  in  KVIC with  a  view  to  implement  Modified  Market  Development  Assistance  (MMDA)  and  Interest Subsidy Eligibility Certificate (ISEC) Scheme of KVIC. Through this e-portal, KVIC / KVIB registered Khadi producing Institutions submit their MMDA and ISEC claim to the respective Field Offices of KVIC.
- ii. Khadi Institution Management Information System (KIMIS): KIMIS software application facilitates to computerize entire activities of Khadi Institutions starting from procurement of raw material  till  sale  of  finished  goods  on  real  time  basis.This  system  is  implemented  by  Khadi Institutions, Departmental Sales Outlets and Central Sliver Plants. The System generates various MIS reports for effective monitoring by the respective Khadi Institutions,  Departmental Units and CSPs.
- iii. Online Budget System for Khadi Institutions: For easing out the problem of manual budget, KVIC has developed the Online Budgeting System for Khadi Institutions.
- iv. Khadi  Institutions Registration  and  Certifications  Sewa  (KIRCS) : Khadi Institution Registration  and  Certifications  Sewa  (KIRCS)  is  an  online  software  application  for  the submission of applications for registering new Khadi Institutions as well as renewal of old Khadi Institutions.
13. (d): Skill Development: Khadi and Village Industries Commission providing the Skill Development Training through its Departmental and Non- Departmental Training Centres located across the country programmes  which  include  Khadi  Technology,  Silk  Reeling  &  Spinning,  Dyeing  &  Printing,  Khadi Design  Development,  Refresher  course  in  Spinning  &  Weaving  Khadi  Spinning , Khadi  Weaving, Fabric Painting, Tailoring & Embroidery etc.

The training programmes provide the traditional skill sets to the local artisans for production and marketing  of  the  local  products  and  enhance  the  livelihood  of  the  local  artisans  as  well  as  artisans associated with Khadi Institutions.

Financial  Support: KVIC  provides  financial  assistance  to  registered  Khadi  Institutions  under  the following schemes/programmes:

- i. Under Interest Subsidy Eligibility Certificate (ISEC) scheme, credit at the concessional rate of  Interest  of  4%  per  annum  is  given  for  Capital  Expenditure  (CE)  as  well  as  for  Working Capital  (WC)  as  per  the  requirement  of  Khadi  institutions.  The  difference  between  the  actual lending rate and 4% is paid by the Central Government through the Khadi & Village Industries Commission (KVIC) to the lending Banks.
- ii. Under  the  Modified  Market  Development  Assistance  (MMDA) scheme,  a  quantum  of MMDA is provided based on the prime cost of production. The assistance is calculated at 35% for cotton, muslin, woolen, and polyvastra khadi, and at 20% for silk khadi. Out of this quantum, 35% of MMDA is allocated as an incentive to artisans working with cotton, muslin, woolen, and polyvastra, while 30% of MMDA is provided as an incentive to artisans working with silk.
- iii. To  provide  ergonomic  workspaces  to  khadi  artisans  and  ensure  long-term  sustainability,  the Workshed  Scheme  for  Khadi  Artisans extends  financial  assistance  for  the  construction  of worksheds. Under this scheme, individual artisans are eligible for assistance of up to ₹1,20,000 or 75% of the total cost of the workshed, with an enhanced assistance of 90% for artisans from the  North  Eastern  Region  (NER).  For  group  worksheds,  benefiting  a  minimum  of  5  and  a maximum of 15 artisans, financial assistance of up to ₹80,000 per artisan or 75% of the total cost of the group workshed (90% for NER) is provided, whichever is lower. This initiative aims to create a conducive and sustainable working environment for khadi artisans, enhancing their productivity and livelihood.
- iv. Under Strengthening of Infrastructure of Existing Weak Khadi Institutions: To revive the sick/weak/problematic/"D" category institution, the financial assistance  under the  said scheme has been provided by KVIC upto the Rs. 15.00 lakh.
- v. Renovation of Sales Outlets: In order to renovate the Sales outlets thereby getting sustainable earnings  by  the  Khadi  artisans,  KVIC  is  providing  the  fund  under  assistance  for  marketing Infrastructures.

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