Lok Sabha Question No. 1162 (UNSTARRED), answered on 2016-07-25
Subject: MDA Scheme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: SIRAJUDDIN AJMAL

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

## LOK SABHA UNSTARRED QUESTION NO. 1162 TO BE ANSWERED ON 25.07.2016

## MDA SCHEME

## 1162. SHRI SIRAJUDDIN AJMAL:

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

- (a) the norms/criteria  laid  down  by  the  Government  for  allotment  under  Market Development Assistance Scheme for the development of Khadi in the country;
- (b) the  details  of  funds  allocated,  sanctioned  and  utilised  under  the  programme  during each of the last three years and the current year, State/UT-wise;
- (c) whether  the  Government  has  taken  any  initiative  to  enhance  the  income  of  the workers engaged in Khadi industry; and
- (d) if so, the details thereof?

## ANSWER

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

(a): Government has introduced with effect from 01.04.2010, a flexible, growth stimulating and artisan oriented Market Development Assistance (MDA) Scheme, in place of the erstwhile system of Rebate. Under MDA, financial assistance is provided to institutions @ 20% of the value  of  production  of  khadi  and  polyvastra,  to  be  shared  among  artisans, producing institutions and selling institutions in the ratio 25:30:45.  MDA  provides institutions  a  flexibility  to  use  the  assistance  for  improving  the  outlets,  products  and production processes, besides giving incentive to customers, etc.

This  scheme  has  been  modified  as  Market  Promotion  Development  Assistance (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 modified MPDA scheme financial assistance is  distributed  amongst  Artisans  (40%),  Producing  Institutions  (20%) and Selling Institutions (40%), which will help the Artisans and Khadi Institutions thus resulting in the development of Khadi in the country.

(b): The State/UT-wise details of disbursement of MDA during each of the last three years and current year is given at Annexure-I.

(c )&(d): KVIC has taken the various steps to increase the wages of Khadi artisans i.e. spinners and weavers engaged in Khadi production.

KVIC has constituted the state Level Cost-chart Committee of the Khadi Institutions for  all  States  and  Committee  recommend  for  fixation  of  cost  of  Khadi  and  enhancing  of wages of Khadi artisans at state level.

Under MDA scheme 25% of assistance is earmarked for distribution among spinners and weavers as additional incentive to be paid through their bank /post office account.

KVIC launched a Group insurance scheme for Khadi artisans named Khadi Karigar Janshree Yojana (JBY) in collaboration with Life Insurance Corporation of India (LIC). In addition to life cover, the ward of artisans (maximum two children) studying in the classes from IX to XII and ITI are provided scholarship as an add-on facility under the scheme with no extra premium. The scheme provides coverage of artisans against death and disabilities caused naturally as well as accidentally.

KVIC  launched  the  Workshed  Scheme  for  Khadi  Artisans  to  provide  better  work ambiance,  more  storing  and  working  space  for  keeping  raw  material,  implements  and accessories,  yarn,  cloth  etc.  KVIC  has  recently  introduced  Solar  Charkha  to  enhance  the wages of spinners under Village Industries.

* * *

## Annexure-I

## Annexure-I referred to in reply to part (b) of the Lok Sabha Unstarred Question No. 1162 for answer on 25.07.2016

## State-wise disbursement of MDA under Khadi and Polyvastra

(Rs. In Lakhs)

| Sl. No.     | State/Uts         | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17    |
|-------------|-------------------|-----------|-----------|-----------|-----------|-----------|-----------|------------|
| Sl. No.     | State/Uts         | Khadi     | Poly      | Khadi     | Poly      | Khadi     | Poly      | Khadi+Poly |
| 1           | Jammu &Kashmir    | 892.39    | -         | 899.26    | 2.9       | 882.21    | 0.19      | 0          |
| 2           | Himachal Pradesh  | 121.97    | 0.65      | 106.61    | 0.44      | 88.67     | 2.06      | 113.99     |
| 3           | Punjab            | 111.04    | -         | 102.61    | 0.10      | 37        | 1.10      | 34.49      |
| 4           | UT Chandigarh     | 0         | -         | 0         | -         | -         | -         | 0          |
| 5           | Haryana           | 1516.81   | 21.92     | 1551.69   | 85.49     | 1239.79   | 94.37     | 2135.80    |
| 6           | Delhi             | 33.82     | 4.94      | 37.6      | 11.60     | 32.21     | 4.30      | 17.26      |
| 7           | Rajasthan         | 829.91    | 152.86    | 808.55    | 275.29    | 580.41    | 132.3     | 1143.14    |
| 8           | Uttarakhand       | 409.2     | 1.11      | 505.02    | 26.9      | 252.02    | 16.65     | 245.56     |
| 9           | Uttar Pradesh     | 4100.62   | 197.98    | 4,389.16  | 307.52    | 5080      | 461.63    | 2188.72    |
| 10          | Chhattisgarh      | 333.85    | 10.31     | 326.8     | 65.87     | 279.44    | 50.02     | 220.43     |
| 11          | Madhya Pradesh    | 181.55    | 7.42      | 155.8     | 59.61     | 63.66     | 16.41     | 40.84      |
| 12          | Sikkim            | -         | -         | -         | -         | -         | -         | 0          |
| 13          | Arunachal Pradesh | 8.29      | -         |           | -         | 2.60      | -         | 0          |
| 14          | Nagaland          | 10.32     | -         | -         | -         | 2.34      | -         | 0          |
| 15          | Manipur           | 4.99      | -         | -         | -         | 0.58      | -         | 0          |
| 16          | Mizoram           | 0         | -         | -         | -         | -         |           | 0          |
| 17          | Tripura           | 1.55      | -         | -         | -         | -         | -         | 0          |
| 18          | Meghalaya         | 3.07      | 0.72      | -         | -         | 1.13      | 1.45      | 1.93       |
| 19          | Assam             | 531.42    | 9.81      | -         | -         | 122.05    | 10.75     | 70.31      |
| 20          | Bihar             | 319.76    | 0.38      | 203.46    | 22.75     | 145.67    | 7.88      | 143.65     |
| 21          | West Bengal       | 2546.35   | 2.69      | 2412.63   | 16.11     | 1392.23   | 4.87      | 2655.7     |
| 22          | Jharkhand         | 222.16    | 2.33      | 148.63    | 3.02      | 22.81     | 1.55      | 77.93      |
| 23          | Odisha            | 129.33    | 9.19      | 127.24    | 3.41      | 102.95    | 6.76      | 49.83      |
| 24          | A&N Islands       | -         | -         | -         | -         | -         | 0         | 0          |
| 25          | Gujarat *         | 838.89    | 308.49    | 882.29    | 499.52    | 625.25    | 466.11    | 830.05     |
| 26          | Maharashtra **    | 92.25     | 14.42     | 85.24     | 39.73     | 62.33     | 9.99      | 13.08      |
| 27          | Goa               | 0         | -         | -         | -         | -         | -         | 0          |
| 28          | Andhra Pradesh    | 556.26    | 14.29     | 487.53    | 42.84     | 372.78    | 7.80      | 202.79     |
| 29          | Telangana         | -         | -         | 0         | -         | 138.61    | 12.80     | 25.13      |
| 30          | Karnataka         | 1343.84   | 81.88     | 1210.07   | 49.46     | 1293.72   | 85.15     | 916.81     |
| 31          | Lakshadweep       | 0         | -         | 0         | -         | -         | -         | 0          |
| 32          | Kerala            | 623.45    | 4.59      | 661.86    | 42.44     | 931.93    | 17.16     | 709.53     |
| 33          | Tamil Nadu        | 1966.13   | 157.43    | 2001.16   | 278.86    | 1733.95   | 214.95    | 1429.64    |
| 34          | Puducherry        | -         | -         | -         | -         | -         | -         | 0          |
| Grand Total | Grand Total       | 17729.22  | 1003.41   | 17,103.21 | 1833.86   | 15486.34  | 1626.25   | 13266.61   |

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