Lok Sabha Question No. 2659 (UNSTARRED), answered on 2016-03-14
Subject: Promotion of Khadi
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAMACHANDRAN MULLAPPALLY, CHANDRA PRAKASH JOSHI, NARANBHAI KACHHADIA, P.P. CHAUDHARY, DILIP KUMAR MANSUKHLAL GANDHI

## GOVERNMENT OF INDIA MINISTRY OF MICRO SMALL & MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO.2659 TO BE ANSWERED ON 14.03.2016

## PROMOTION OF KHADI

2659.

SHRI MULLAPPALLY RAMACHANDRAN:

SHRI CHANDRA PRAKASH JOSHI:

SHRI NARANBHAI KACHHADIYA:

SHRI P.P. CHAUDHARY:

SHRI DILIPKUMAR MANSUKHLAL GANDHI:

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

- (a) whether a new Khadi and Village Industries Commission (KVIC) has been set up by the Government for the upliftment of workers and traders associated with the Khadi, if so, the details thereof;
- (b) whether the Government proposes to make Khadi an international brand, if so, the details thereof including the ongoing schemes for promotion of the Khadi;
- (c) the details of khadi workers in the country at present, State/UT-wise;
- (d) whether the Government also proposes to increase the wages of khadi workers, if so, the details thereof; and
- (e) the other measures taken by the Government to promote Khadi?

## ANSWER

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

- (a): Yes, Madam.  Khadi and Village Industries Commission has been re-established vide Notification  No.A-43013/6/2015-KVI-P  dated  26 th October  2015  with  an  objective  to promote,  facilitate  and  assist  in  establishment  and  development  of  Khadi  and  Village Industries in rural areas.
- (b): Khadi  is  already  an  international  brand.    KVIC  has  been  granted  Deemed  Export Promotion Council status since December 2006.  1018 Khadi and Village Industries (KVI) Institutions are registered as members.  However, most of the exports are through merchant exporters and not directly  by KVI units.   5% of the Free On Board (FOB) value or Rs.10 lakh,  whichever  is  less,  is  provided  as  incentive  for  KVI  units  which  undertake  Direct Exports. In addition, KVIC  encourages  Khadi,  Village Industries to participate in International Trade Fair/ Exhibitions by subsidizing 75% of the Air fare and 50% of stall rent to augment export of their products in general subject to maximum limit of Rs.1.25 lakh each. In  case  of  Women  entrepreneurs  &  institutions/ST/SC/NE  States,  air  fare  and  stall  rent extended to the extent of 100% subject to maximum limit of Rs.1.25 lakh each.  Government in the Ministry of Micro Small & Medium Enterprises is implementing a number of schemes for the holistic development and promotion of khadi which include:

(i) Strengthening  of  Infrastructure  of  existing  Weak  Khadi  Institutions  and Assistance for Marketing Infrastructure provides for renovation of khadi sales outlets and providing assistance for strengthening of infrastructure.

- (ii) Market  Promotion  and  Development  Assistance  under  which  assistance  is provided @ 30% of prime cost of cost to be shared among artisans, producing and selling institutions in the ratio of 40:20:40.
- (iii) Interest Subsidy Eligibility Certification scheme for providing bank loans for khadi and polyvastra at 4% rate of interest.
- (iv) Workshed Scheme for khadi artisans for providing assistance for construction of worksheds.
- (v) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) under which assistance for replacement of obsolete equipments, setting up common facility centres,  product  development,  market  promotion  and  other  support  is  provided  in clusters of traditional industries including khadi industries.  Under the scheme 71 such clusters  are  to  be  set  up  during  XII  Plan  period.    26  clusters  have  been  given  final approval for establishment so far.
- (vi) Khadi Reforms and Development Programme (KRDP) to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinners and weavers, increased artisans welfare and to achieve synergy with village industries is being implemented.
- (c): The State/UT wise details of 11.27 lakh workers are given at Annexure-1.
- (d): Market  Promotion  and  Development  Assistance  aims  to  increase  the  earnings  of Khadi  workers.    Under  the  scheme  khadi  artisans  will  be  given  market  development assistance  at  30%  of  prime  cost  to  be  shared  among  artisans,  producing  and  selling institutions in the ratio of 40:20:40. The share of the artisan is enhanced from earlier 25% to 40%. This benefit will be transferred directly in the accounts of the khadi artisans.
- (e): KVIC is taking various steps to promote khadi by tying up with e-commerce portals, big malls etc. to promote khadi and increase its sale.  It is making and selling new designer ready  to  wear  clothes  focused  on  youth  like  Khadi  Denim,  Khadi  T-shirts.    Trade Fairs/Exhibitions are being organized at District/State/ National level for promotion of Khadi.

## Annexure-I referred to in reply to part (c) of the Lok  Sabha Unstarred Question No. 2659 for answer on 14.03.2016

## Number of Khadi workers State/UTwise

(Figures in Lakhs)

| Sl.No.   | State                                                                                                    |   No. of workers |
|----------|----------------------------------------------------------------------------------------------------------|------------------|
| 1        | Jammu &Kashmir                                                                                           |             0.25 |
| 2        | Himachal Pradesh                                                                                         |             0.08 |
| 3        | Punjab                                                                                                   |             0.45 |
| 4        | UT Chandigarh                                                                                            |             0    |
| 5        | Haryana                                                                                                  |             0.52 |
| 6        | Delhi                                                                                                    |             0.04 |
| 7        | Rajasthan                                                                                                |             0.86 |
| 8        | Uttarakhand                                                                                              |             0.41 |
| 9        | Uttar Pradesh                                                                                            |             4.17 |
| 10       | Chhattisgarh                                                                                             |             0.08 |
| 11       | Madhya Pradesh                                                                                           |             0.07 |
| 12       | North-East (Assam-15956; Arunachal-87; Nagaland-2051; Manipur-370; Mizoram-0; Tripura-445; Meghalaya-91) |             0.19 |
| 13       | Bihar                                                                                                    |             1.1  |
| 14       | West Bengal                                                                                              |             1.06 |
| 15       | Jharkhand                                                                                                |             0.04 |
| 16       | Odisha                                                                                                   |             0.04 |
| 17       | Gujarat                                                                                                  |             0.4  |
| 18       | Maharashtra                                                                                              |             0.03 |
| 19       | Goa                                                                                                      |             0    |
| 20       | Andhra Pradesh / Telangana                                                                               |             0.33 |
| 21       | Karnataka                                                                                                |             0.41 |
| 22       | Kerala                                                                                                   |             0.19 |
| 23       | Tamil Nadu                                                                                               |             0.55 |
| 24       | Pondicherry                                                                                              |             0    |
|          | Grand Total                                                                                              |            11.27 |