Lok Sabha Question No. 2444 (UNSTARRED), answered on 2016-05-09
Subject: Promotion of Cottage Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BALABHADRA MAJHI, BHOLA SINGH, HARI MANJHI

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

## LOK SABHA UNSTARRED QUESTION NO. 2444 TO BE ANSWERED ON 09.05.2016

## PROMOTION OF COTTAGE INDUSTRIES

2444. SHRI BALABHADRA MAJHI: SHRI BHOLA SINGH: SHRI HARI MANJHI:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a)   the  details  of  the  schemes/programmes  including  credit-linked  programmes  being implemented  at  present  by  the  Government  to  promote  cottage  and  agriculture-based industries and the number of beneficiaries therefrom, State/UT-wise;

- (b)   whether  the  Government  has  constituted  any  panel  to  study  the  condition  of  cottage industries and agriculture-based industries in the country;
- (c) if so, the details and the findings thereof; and
- (d) the  steps  taken/being  taken  by  the  Government  to  promote  the  agro  and  cottage industries in the country?

## ANSWER

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

(a): Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  through  Khadi  and Village  Industries  Commission  (KVIC)  and  Coir  Board  is  implementing  the  following schemes to promote cottage and agro-based rural industries:

Prime  Minister's  Employment  Generation  Programme  (PMEGP)  is  a  credit  linked subsidy  scheme,    for  setting  up  of  new  micro-enterprises  and  to  generate  employment opportunities in rural as well as urban areas of the country through KVIC,  State Khadi & Village  Industries  Board  (KVIB)  and  District  Industries  Centre  (DIC).    General  category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas.  For beneficiaries belonging to special categories such as SC/ST/Women/ PH/Minorities/Ex-Servicemen/NER,  the  margin  money  subsidy  is  35%  in  rural  areas  and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.  Since inception  and up to 2015-16,  3.65 lakh micro enterprises  have  been  set  up  by  utilizing  margin  money  amounting  to  Rs.7367.40  crore. 30.94 lakh jobs have been created from these units.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched in 2005-06  for  making  Traditional  Industries  more  productive  and  competitive  by  organizing the Traditional Industries and artisans into clusters. During 2015-16, 32 clusters have been granted  final  approval  with  a  total  project  cost  of  Rs.89  crore  benefiting  around  30000 artisans.  9 clusters out of these have already been established, benefitting more than 14000 artisans.

Coir  Udyami  Yojana  (formerly  known  as  REMOT  Scheme)  is  a  credit  linked  subsidy scheme, which provides assistance for setting up of coir units with a maximum cost of project upto Rs.10 lakhs plus working capital, which shall not exceed 25% of the project cost. The pattern  of  assistance  is  40%  as  Govt.  subsidy,    55%  as  loan  from  Banks  and  5%  as beneficiary  contribution.  Scheme  is  open  to  all  individuals,  companies,  SHGs,  NGOs, Institutes, etc. Upto March 2016, 6437 units have been set up by utilizing subsidy amounting to around Rs.83.90 crore.

Mahila  Coir  Yojana  (a  component  of  Coir  Vikas  Yojana-CVY)  is  an  exclusive  skill development  programme  for  rural  women  artisans  in  coir  sector.    Training  is  provided  in spinning of coir yarn/various coir processing activities. The scheme envisages distribution of motorized  ratts/motorized  traditional  ratts  and  other  coir  processing  equipments  at  75% subsidy subject to a maximum amount of Rs.7500/- on successful completion of the training programme.  During the training period, the women artisans are given a stipend amounting to Rs.1000/-  per  month.    Coir  Vikas  Yojana  also  includes  Skill  Development  &  Training Programme  in  coir  sector,  Domestic  &  Export  Market  Promotion  and  Development  of Production Infrastructure.  Rs.21.67 crore has been released under CVY during 2015-16.

- (b): No Madam.
- (c): Does not arise.

(d): In  addition,  the  Ministry  aims  to  promote  the  agro  and  cottage  industries  in  the country by encouraging and providing the artisans a platform to showcase their products in various forums such as District level, State level and National level exhibitions and fairs. The best  products  and  processes  are  also  being  supported  to  be  performed  outside  the  country through schemes such as Market Promotion and Development Assistance (MPDA). Ministry through KVIC also does provide different skill training to the potential entrepreneurs through the  39  Multi-Disciplinary  Training  Centres  (MDTC)  of  Khadi  and  Village  Industries Commission (KVIC) and RSETIs. The enterprises can also avail benefits of other schemes of the Ministry such as assistance for ISO Certification, Bar Codes etc.

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