Lok Sabha Question No. 3454 (UNSTARRED), answered on 2016-08-08
Subject: Hand-Made Papers
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BHANU PRATAP SINGH VERMA

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3454 TO BE ANSWERED ON 08.08.2016

## HAND-MADE PAPERS

## 3454. SHRI BHANU PRATAP SINGH VERMA:

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

- (a) whether  the  manufacturing  of  handmade  paper  comes  under  the  Micro,  Small  and Medium Enterprises;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether  the  Government  promotes  the  manufacturing  of  hand-made  paper  in  the country; and
- (d) if so, the details thereof along with the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)&(b): Yes  Madam,  manufacturing  of  Hand-made  paper  is  defined  as  a  Village Industry under Khadi and Village Industries Commission Act, 1956. Manufacturing paper by hand  comes  under  Hand  Made  Paper  &  Fibre  industry  of  Khadi  and  Village  Industry activities of Khadi and Village Industries Commission (KVIC).  The performance of Hand Made Paper & Fibre Industry under the Prime Minister Employment Generation Programme (PMEGP) scheme being  implemented  by  KVIC  during  2013-14,  2014-15,  2015-16  &  the current financial year is given below:

| Year       |   No. of Projects |   Margin money (in crore) |   Employment Numbers |
|------------|-------------------|---------------------------|----------------------|
| 2013-14    |              1144 |                     35.88 |                12023 |
| 2014-15    |              1057 |                     34.42 |                11883 |
| 2015-16    |               989 |                     32.64 |                10493 |
| 2016-17(P) |               761 |                     22.5  |                  503 |

Items  covered  under  Hand  Made  Paper  &  Fibre  industry  are  card  sheets,  drawing paper,  silken  paper,  mottle  paper,  bond  paper,  marble  paper,  leatherite  paper,  watermark paper,  file  cover  paper,  envelops,  file  covers,  gift  wrappers,  greeting  cards,  visiting  cards, carry bags, photo albums, diaries etc.

- (c): Yes  Madam.  For  the  year  2016-17,  it  is  targeted  to  set  up  1231  units  to  create employment  opportunities  to  14330  persons  by  utilizing  margin  money  amounted  to  Rs. 35.20 crore for Hand Made Paper & Fibre Industry.

- (d): The following steps have been taken by the Government for better implementation of Prime Minister's Employment Generation Programme (PMEGP) scheme in the country.
1. Publicity  is  being  made  through  print  and  electronic  media  about  PMEGP scheme for the benefit of Rural and Urban areas.
2. Awareness camps at District level and State level are being organized in order to propagate the PMEGP scheme for the development of micro industries.
3. To bring in transparency in implementation of PMEGP scheme as well as to create data base of PMEGP  beneficiaries, e-tracking  of  PMEGP  applications introduced.
4. For speedy completion of EDP training and to generate IRG, policy decision has taken to conduct EDP training through Departmental Training Centres as well as RSETIs/RUDSETIs as per MOU executed between KVIC & MCR.
5. Where there is no mechanism of KVIC's Departmental and Non-Departmental Training Centers exist, the infrastructure of KVIC's Khadi/VI Institutions, professional training associates like NIESBUD etc. will be utilized to conduct EDP under PMEGP.
6. Trading  activities/sales  outlets  have  been  included  in  PMEGP  in  the  LWE Districts.
7. Industries such as Khadi, processing of Pashmina Wool, handloom and power loom units are now eligible for funding under PMEGP.
8. Ceiling of 10% on the extent of projects to be financed for transport activities is  imposed  in  the  states/UTs  except  in  specific  regions  (hilly  region,  NER,    A&N Island, Goa, Puducherry, Lakshadweep, Daman & Diu, Dadra Nagar Haveli, J&K and LWE affected districts).
9. Relaxation  in  per  capita  investment  from  Rs.1.00  lakh  to  Rs.4.50  lakh  has been given to A&N Islands and Lakshadweep.
10. Exhibitions  are  also  conducted  at  district/state/zone  and  national  level  for providing marketing support to the entrepreneurs/units.
11. An online grievance handling system for PMEGP is set up to provide prompt and online redressel.
12. To increase  the  registration  of  MSMEs  in  the  country,  the  Government  has undertaken measures that the PMEGP  units can adopt the Udyog Aadhar Memorandum (UAM) to register online for filing for industrial land application for credit, pollution clearance etc.

Online system for direct transfer of fund to the financing banks:

13. Ministry through KVIC has set up an online system PMEGP-MIS portal for end to end monitoring of the scheme right from online application filing, application tracking, sanction of loans, disbursement of loans and repayment of loans including online transfer of PMEGP Margin Money funds directly to Financing Bank Branches.
14. The online system of transfer of Margin Money subsidy to the Financing Bank Branches  will  remove  the  delay  for  settling  the  Margin  Money  Claims  and  thus, quality implementation and better timely progress and utilization of funds will result.