Lok Sabha Question No. 316 (STARRED), answered on 2023-08-10
Subject: Promotion of Cottage Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: DNV Senthilkumar. S., Kuldeep Rai Sharma

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

## LOK SABHA STARRED QUESTION NO. 316 TO BE ANSWERED ON 10.08.2023

## PROMOTION OF COTTAGE INDUSTRIES

## *316. DR. DNV SENTHILKUMAR S.: SHRI KULDEEP RAI SHARMA:

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

- (a) the current status of cottage industries in the State of Tamil Nadu, Maharashtra, Andaman and Nicobar Islands along with the steps taken to promote such industries;
- (b) the  contribution  of  small  scale  and  cottage  industries  in  the  economic  development  and Gross Domestic Product (GDP) of the country;
- (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;
- (d) if  so,  the  details  of  the  initiatives  that  have  been  taken  and  proposed  to  be  taken  by  the Government in this regard;
- (e) whether the Government has made any assessment regarding the capacity/contribution of cottage  industries  in  creating  employment  opportunities  in  the  country  and  if  so,  the  details thereof;
- (f) whether  the  Government  has  formulated  any  scheme  for  revival  and  promotion  of domestic cottage industries which are on the verge of extinction and if so, the details thereof; and
- (g) 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 MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

(a) to (g): A statement is laid on the table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (g) OF THE LOK SABHA STARRED QUESTION No.*316 FOR ANSWER ON 10.08.2023

- (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 creditlinked 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 State of Tamil Nadu, Maharashtra, Andaman and Nicobar Islands for the above schemes is placed in Annexure I.

- (b): Separate  data  on  the  contribution  of  small  scale  and  cottage  industries  in  the  Gross Domestic Product (GDP) of the country is not being maintained. However, the contribution of MSME sector including small scale and cottage industries is estimated at about 30% of GDP of the country.
- (c) & (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,  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 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 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.
4. (e): Yes, Sir.  The  employment  generated  under  the  schemes  relating  to  cottage  industries  is given at Annexure II.
5. (f): Ministry  of  MSME  is  implementing  Scheme  of  Fund  for  Regeneration  of  Traditional Industries  (SFURTI)  which  focuses  on  regenerating  traditional  industries  including  cottage industries.  Since  2015-16  till  31.07.2023,  a  total  of  513  clusters  have  been  approved  under SFURTI, with a total Government of India assistance of Rs. 1332.95 cr., directly benefitting 3.03 lakh artisans across the country.
6. (g): Following  steps  are  being  taken  by  the  Ministry  of  MSME  through  KVIC  to  provide marketing support to micro units including cottage industries:
- i. Sale of products manufactured by traditional aritsans and craftsmen are facilitated through a wide network of around 8035 'Khadi India' sales outlets across the country including Departmental Sales Outlets and its branches owned by KVIC.
- ii. KVIC  facilitates  marketing  support  and  organises  exhibition  where  the  institutions  and entrepreneurs promoted by KVIC can sell and display their products.
- iii. KVIC has started online selling of all  KVI  products  through  www.ekhadiindia.com and www.khadiindia.gov.in.
- iv. Selected entrepreneurs and artisans engaged in production of unique and quality products are also given financial assistance to participate in the International Exhibitions.
- v. Tie-up  with  Railways,  Department  of  Posts,  Air  India,  ONGC,  IOCL  and  other  Govt. organizations to  market the products manufactured  by  the Khadi  Institutions and entrepreneurs promoted by KVIC.
- vi. Publicity of KVI products is undertaken through print, electronic, digital and social media.

## Annexure I referred to in reply to part (a) of the Lok Sabha Starred Question No. 316 for answer on 10.08.2023

Details of units assisted and estimated employment generated under PMEGP since inception in 2008-09 and till 31.07.2023 in the State/ UT of Tamil Nadu, Maharashtra, Andaman and Nicobar Islands are given below:

| States/ UT                  |   Units assisted |   Estimated employment generated |
|-----------------------------|------------------|----------------------------------|
| Tamil Nadu                  |            55128 |                           526293 |
| Maharashtra                 |            51355 |                           403359 |
| Andaman and Nicobar Islands |             2383 |                            13256 |

Details  of  clusters  approved  and  artisans  covered  under  SFURTI  since  2015-16  and  till 31.07.2023 in the State/ UT of Tamil Nadu, Maharashtra, Andaman and Nicobar Islands are given below:

| States/ UT                  |   No. of clusters approved |   Artisans covered |
|-----------------------------|----------------------------|--------------------|
| Tamil Nadu                  |                         28 |              25531 |
| Maharashtra                 |                         29 |              16602 |
| Andaman and Nicobar Islands |                          1 |                400 |

Details of registered Khadi Institutions and Khadi Artisans as on 31.03.2023 in the State/ UT of Tamil Nadu, Maharashtra, Andaman and Nicobar Islands are given below:

| States/ UT                  |   No. of registered Khadi Institutions |   No. of Khadi Artisans engaged |
|-----------------------------|----------------------------------------|---------------------------------|
| Tamil Nadu                  |                                     81 |                           20263 |
| Maharashtra                 |                                     40 |                            3087 |
| Andaman and Nicobar Islands |                                      0 |                               0 |

Number  of  beneficiaries  under  GVY  as  on  31.03.2023  in  the  State/  UT  of  Tamil  Nadu, Maharashtra, Andaman and Nicobar Islands is given below:

| States/ UT                  |   No. of beneficiaries under Honey Mission of GVY |   No. of beneficiaries under Kumhar Sashaktikaran Programme of GVY |
|-----------------------------|---------------------------------------------------|--------------------------------------------------------------------|
| Tamil Nadu                  |                                               775 |                                                               1115 |
| Maharashtra                 |                                               987 |                                                               3252 |
| Andaman and Nicobar Islands |                                                 0 |                                                                  0 |

Details  of  number  coir  units  registered  as  on  31.03.2023  in  the  State/  UT  of  Tamil  Nadu, Maharashtra, Andaman and Nicobar Islands is given below:

| States/ UT                  |   No. of registered coir units |
|-----------------------------|--------------------------------|
| Tamil Nadu                  |                           4824 |
| Maharashtra                 |                             56 |
| Andaman and Nicobar Islands |                              3 |

## Annexure II referred to in reply to part (e) of the Lok Sabha Starred Question No. 316 for answer on 10.08.2023

The details of employment generated under the schemes relating to Cottage Industries are given below:

| Name of the Scheme                                                 | Total employment generated   |
|--------------------------------------------------------------------|------------------------------|
| Prime Minister's Employment Generation Programme (PMEGP)           | 72.88 lakh                   |
| Scheme of Fund for Regeneration of Traditional Industries (SFURTI) | 3.03 lakh                    |
| Khadi Vikas Yojana (KVY)                                           | 4.98 lakh                    |
| Honey Mission under Gramodyog Vikas Yojana (GVY)                   | 0.19 lakh                    |
| Kumhar Sashaktikaran Programme under Gramodyog Vikas Yojana (GVY)  | 1.04 lakh                    |
| Coir Vikas Yojana (CVY)                                            | 7.48 lakh                    |