Lok Sabha Question No. 302 (STARRED), answered on 2015-12-21
Subject: Khadi and Village Industries Commission
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: PRATAPRAO GANPATRAO JADHAV, SAKUNTALA LAGURI

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

## LOK SABHA STARRED QUESTION NO. *302 TO BE ANSWERED ON 21.12.2015

## KHADI AND VILLAGE INDUSTRIES COMMISSION

## *302. SHRI PRATAPRAO JADHAV: SHRIMATI SAKUNTALA LAGURI:

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

(a) whether  the  Government  is  aware  of  pivotal  role  played  by  the  Khadi  and  Village Industries Commission (KVIC) in transforming rural economy of the country and if so, the details thereof;

(b) whether a number of Khadi Bhandars/outlets of KVIC have closed down over the years and if so, the details thereof and the reasons therefor including the number of Khadi Bhandars which existed in 1997 and those at present, State/ UT-wise;

(c) whether  the  Government  has  introduced  any  scheme  for  modernisation  of  Khadi Bhandars/outlets in the country and if so, the details thereof along with the funds earmarked for the purpose;

(d) whether the Government proposes to set up Khadi outlets in foreign countries also and if so, the details thereof, country-wise; and

(e) the steps taken for promotion and export of khadi products?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI KALRAJ MISHRA)

(a)to(e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS  (a) to (e) OF THE LOK SABHA STARRED QUESTION No.*302 FOR ANSWER ON 21.12.2015

- (i) Khadi  &  Village  Industries  Commission  (KVIC)  was  set  up  in  1956  for  the development of Khadi and Village Industries and for matters connected therewith. KVIC extends financial support for creation of employment opportunities and for marketing of products  of  Khadi  and  Village  Industries  (KVIs).  There  are  7050  outlets  of  Khadi Institutions,  7  Departmental  Khadi  Gramodyog  Bhavans  (KGBs)  and  1  Gramshilpa  in the country.  Government has taken various steps to support Khadi and Village Industries Institutions,  including programmes like Janshree Bima Yojana (JBY), Market Promotion Development  Assistance  (MPDA)  Scheme,  Workshed  Scheme  for  Khadi  Artisans, Interest  Subsidy  Eligibility  Certificate  (ISEC)  Scheme  for  the  development  of  Khadi sector.  Budget allocated to KVIC in the year 2015-16 is Rs. 231.72 crore.
- (ii) The performance of KVIC outlets for the last three years are given below:
- (iii) 4  Khadi  Bhandars/outlets  of  KVIC  located  at  Hyderabad  (2000),  Visakhapatnam (2000), Lucknow (2001) and Bangalore (2010) have closed down due to non-viability.
- (iv) At  the end  of  1997-98  financial year, i.e. as  on  31.03.1998,  there  were  27 Bhawans/Vastragar/Bhandars of KVIC. At present,23 Bhawans/Vastragar/Bhandars of KVIC (7 Departmental Bhawans, 1 Gramshilpa and 15 Branches) are functional. The State wise list is given below:
- (v) To renovate the outlets and to strengthen the production infrastructure, Government has  a  separate  scheme  called  'Strengthening  of  Infrastructure  of  Existing  Weak  Khadi Institutions  and  assistance  for  Marketing  Infrastructure'.  This  scheme provides  for    capital expenditure, working capital and renovation of sales outlets.  KVIC has extended financial support to the tune of Rs.390.99 lakh for renovation and modernization of 52 sales outlets since inception.
- (vi) There is no proposal for setting up of  Khadi outlets in foreign countries.
- (vii) KVIC  assists  Khadi  and  Village  Industries    Institutions  both  in  production  and  in marketing of their products.  Export activities are encouraged through participation in Trade Fairs including India International Trade Fair (IITF) held every year at Delhi by India Trade Promotion Organisation (ITPO).  In addition, buyer-seller meets are also  organized. KVIC has  been  declared  as  deemed  Export  Promotion  Council  (EPC)  for  Khadi  products  in December 2006-1018 Khadi and Village Industries Institutions and PMEGP units have taken its membership to enter the export market. Government has introduced Interest Equalization Scheme 2015 to boost exports in the sectors of handicrafts, agri-products, food processing and  SMEs.    Government  is  also  implementing  the  International  Cooperation  Scheme  to enable exporters to participate in International Trade Fairs and Exhibitions.

| Year    | Sales including supply to Govt. Departments (Rs. in lakhs)   |
|---------|--------------------------------------------------------------|
| 2012-13 | Rs. 5425.90                                                  |
| 2013-14 | Rs. 8705.20                                                  |
| 2014-15 | Rs.12513.72                                                  |

|   KGB (No.) | State   |   Outlets (No.) | Departmental Sales Outlets                                                                                                                          |
|-------------|---------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|           1 | Delhi   |               1 | Khadi Gramodyog Bhavan, Regal Building, Connaught Circus, New Delhi working at Gramshilpa, A-1, Baba Kharak Singh Marg, Connaught Circus, New Delhi |
|           1 | Delhi   |               2 | Sector-8, Shop No:1, RK Puram, New Delhi-110022                                                                                                     |
|           1 | Delhi   |               3 | IIT Shopping Centre, Hauz Khas, New Delhi-110016                                                                                                    |
|           1 | Delhi   |               4 | F-52, MadhuVihar, Delhi-110092                                                                                                                      |
|           1 | Delhi   |               5 | D-9A, Sector-27, NOIDA (U.P)                                                                                                                        |
|           1 | Delhi   |               6 | Ashoka Hotel, Chanakyapuri, New Delhi-110021                                                                                                        |
|           1 | Delhi   |               7 | Sector-3, Rohini, New Delhi                                                                                                                         |
|           2 | Delhi   |               8 | Gramshilpa, A-1, Baba Kharak Singh Marg, Connaught Circus, New Delhi                                                                                |

|   3 | Maharashtra   |   9 | Khadi Gramodyog Bhavan, KVIC, Campus, Irla Road, Vile Parle (W) Mumbai- 400056   |
|-----|---------------|-----|----------------------------------------------------------------------------------|
|   3 | Maharashtra   |  10 | Viral Apartment, S.V. Road, Mumbai.                                              |
|   4 | Goa           |  11 | Khadi Gramodyog Bhavan, KVIC, Katkar Building,Old Station Road, Margaon, Goa     |
|   4 | Goa           |  12 | Municipal Building, Dr. A.B Road, Panaji-403011                                  |
|   5 | Bhopal        |  13 | Khadi Gramodyog Bhavan, KVIC, Jawahar Chowk, Bhopal                              |
|   5 | Bhopal        |  14 | 27, Bhadbada Road, T.T. Nagar, Bhopal - 462 003                                  |
|   6 | Kerala        |  15 | Khadi Gramodyog Bhavan, Pallimukku, M.G. Road, Ernakulam, Cochin                 |
|   6 | Kerala        |  16 | Khadi Silk Emporium East Fort, Trivandrum - 695 023                              |
|   6 | Kerala        |  17 | Shop No.15, Vijayanthi Building, Guruvayoor- 680 101                             |
|   7 | West Bengal   |  18 | Khadi Gramodyog Bhavan, KVIC, Chitaranjan Avenue Kolkata                         |
|   7 | West Bengal   |  19 | Bijwai Chand Road, Baidyanath Katra, Burdwan-713101                              |
|   7 | West Bengal   |  20 | 46/2/1A, Gariahat Road, Kolkata-700019                                           |
|   7 | West Bengal   |  21 | The Mall, Darjeeling - 734 101                                                   |
|   7 | West Bengal   |  22 | IIT, Kharaghpur                                                                  |
|   8 | Bihar         |  23 | Khadi Gramodyog Bhavan, 'B' Block, 1 st Floor, Maurya lok Complex, Patna- 800001 |

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