Lok Sabha Question No. 105 (UNSTARRED), answered on 2016-04-25
Subject: Promotion of Rural Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: GANESH SINGH, MUKESH RAJPUT, JASVANTSINH SUMANBHAI BHABHOR, PRATAPRAO GANPATRAO JADHAV

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

## LOK SABHA UNSTARRED QUESTION NO. 105 TO BE ANSWERED ON 25.04.2016

## PROMOTION OF RURAL INDUSTRIES

## 105. SHRI GANESH SINGH:

SHRI MUKESH RAJPUT:

SHRI JASVANTSINH SUMANBHAI BHABHOR:

SHRI PRATAPRAO JADHAV:

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

- (a) whether an exponential growth of rural industries has been reported in the country, if so, the details thereof, State/UT-wise;
- (b) the  details  of  schemes  being  implemented  by  the  Government  for  promotion  of  agrobased rural industries in the country;
- (c) whether  the  Government  has  received  any  proposals  from  the  State  Governments  for revival of the said industries during each of the last three years; and
- (d) if so, the details thereof including the status of the proposals, State/UT-wise?

## ANSWER

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

- (a): Yes,  Madam.  It is reported that there is reasonable growth in overall production by Village Industries in last three years.  The details are at Annexure-I.
- (b): Ministry  of  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.

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.

A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE) was launched on 18.3.2015 to promote Innovation & Rural Entrepreneurship through rural Livelihood  Business  Incubator  (LBI),  Technology  Business  Incubator  (TBI)  and  Fund  of Funds for start-up creation.

Market Promotion Development Assistance (MPDA) - MDA scheme of KVIC has been modified as  MPDA  scheme  formulated as a unified scheme by merging different schemes/sub- schemes/components  of  different  Heads  implemented  in  the  11 th Plan,  namely,  Market Development Assistance, Publicity, Marketing and Market Promotion.  A new component of Infrastructure namely setting up of Marketing Complexes /Khadi Plazas has been added to expand the marketing net worth of Khadi & VI products. Under the erstwhile MDA scheme financial assistance was distributed amongst Producing Institutions (30%), Selling Institutions  (45%)  and  Artisans  (25%).    Under  the  modified  MPDA  scheme  financial assistance is distributed amongst Producing Institutions (20%), Selling Institutions (40%) and Artisans (40%).  This will lead to increase in the earnings of artisans.

Interest Subsidy Eligibility Certificate (ISEC) Scheme provides credit at concessional rate of interest through Banks as per the requirement of the Khadi institutions. The institutions are required to pay interest of only 4%, any interest charged by banks over 4% will be paid by Central Government through KVIC.

Workshed  Scheme  for  Khadi  Artisans  was  introduced  in  2008-09  to  provide  financial assistance for construction of workshed to khadi artisans belonging to BPL category through the  khadi  institutions  with  which  the  khadi  artisans  are  associated.    This  empowers  khadi spinners and weavers to chart out a sustainable path for growth, income generation and better work environment.

Strengthening infrastructure of weak Khadi institutions and assistance for marketing infrastructure:    This  scheme  provides  need-based  support  towards  the  Khadi  sector  for nursing the sick/problematic institutions elevated from 'D' to 'C' category as well as those whose production, sales and employment have been declining while they have potential to attain  normalacy  and  to  support  creation  of  marketing  infrastructure  in  other  identified outlets.    Under  this  scheme,  financial  assistance  is  provided  to  existing  weak  Khadi institutions for strengthening of their infrastructure and for renovation of selected khadi sales outlets.

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.

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.

Coir S&T  Scheme promotes scientific, technological and economic research and development  activities,  developing  new  products  &  designs,  marketing  of  coir  and  coir products in India and abroad.  It also promotes co-operative organisations among producers and manufacturers of coir sector.  Two research institutes viz. Central Coir Research Institute (CCRI),  Alleppey, and Central Institute of Coir  Technology  (CICT),  Bengaluru  are undertaking research activities on different aspects of coir industry.

(c)& (d): No specific proposal for revival has been received from the State Governments.  However, the Ministry does receive proposals under various schemes which are dealt with as per scheme provisions.

## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 105 for answer on 25.04.2016

## State/UT-wise details of production of Village Industries

[Rs. in crore]

| Sl.No.   | State/UT                       | Production of Village Industries   | Production of Village Industries   | Production of Village Industries   |
|----------|--------------------------------|------------------------------------|------------------------------------|------------------------------------|
| Sl.No.   | State/UT                       | 2012-13                            | 2013-14                            | 2014-15                            |
| 1        | Jammu &Kashmir                 | 561.04                             | 610.14                             | 643.71                             |
| 2        | Himachal Pradesh               | 604.47                             | 657.37                             | 693.53                             |
| 3        | Punjab                         | 1073.10                            | 1167.01                            | 1231.20                            |
| 4        | UT Chandigarh                  | 25.69                              | 27.93                              | 29.47                              |
| 5        | Uttarakhand                    | 271.20                             | 294.93                             | 311.16                             |
| 6        | Haryana                        | 892.25                             | 970.33                             | 1023.70                            |
| 7        | Delhi                          | 81.18                              | 88.28                              | 93.14                              |
| 8        | Rajasthan                      | 2040.74                            | 2219.33                            | 2341.39                            |
| 9        | Uttar Pradesh                  | 2734.85                            | 2974.18                            | 3137.76                            |
| 10       | Bihar                          | 461.79                             | 502.21                             | 529.83                             |
| 11       | Sikkim                         | 45.34                              | 49.31                              | 52.02                              |
| 12       | Arunachal Pradesh              | 51.75                              | 56.28                              | 59.37                              |
| 13       | Nagaland                       | 137.60                             | 149.64                             | 157.87                             |
| 14       | Manipur                        | 110.74                             | 120.43                             | 127.05                             |
| 15       | Mizoram                        | 251.85                             | 273.89                             | 288.95                             |
| 16       | Tripura                        | 119.05                             | 129.47                             | 136.59                             |
| 17       | Meghalaya                      | 131.89                             | 143.43                             | 151.32                             |
| 18       | Assam                          | 632.95                             | 688.34                             | 726.20                             |
| 19       | West Bengal                    | 1240.36                            | 1348.91                            | 1423.10                            |
| 20       | Jharkhand                      | 128.08                             | 139.29                             | 146.95                             |
| 21       | Odisha                         | 491.33                             | 534.33                             | 563.71                             |
| 22       | Chhattisgarh                   | 479.14                             | 521.08                             | 549.74                             |
| 23       | Madhya Pradesh                 | 1220.00                            | 1326.76                            | 1399.73                            |
| 24       | Gujarat [incl. Daman &Diu]     | 902.12                             | 981.06                             | 1035.02                            |
| 25       | Maharashtra [incl. D&N Haveli] | 2410.34                            | 2622.71                            | 2766.96                            |
| 26       | Andhra Pradesh                 | 1684.02                            | 1831.39                            | 1092.06                            |
| 27       | Telangana                      | -                                  | 0                                  | 840.05                             |
| 28       | Karnataka                      | 1720.72                            | 1871.30                            | 1974.22                            |
| 29       | Goa                            | 63.27                              | 68.81                              | 72.59                              |
| 30       | Lakshadweep                    | 2.40                               | 2.61                               | 2.75                               |
| 31       | Kerala                         | 1119.55                            | 1217.52                            | 1284.49                            |
| 32       | Tamil Nadu                     | 1528.82                            | 1662.61                            | 1754.06                            |
| 33       | Puducherry                     | 18.19                              | 19.78                              | 20.87                              |
| 34       | Andaman &Nicobar Islands       | 24.99                              | 27.18                              | 28.68                              |
|          | Total                          | 23262.31                           | 25298.00                           | 26689.39                           |