Lok Sabha Question No. 160 (UNSTARRED), answered on 2016-04-25
Subject: Khadi and Village Industries Commission
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: LALLU SINGH, SONA RAM CHOUDHARY, GOPAL CHINAYYA SHETTY, SADASHIV KISAN LOKHANDE

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

## LOK SABHA UNSTARRED QUESTION NO. 160 TO BE ANSWERED ON 25.04.2016

## KHADI AND VILLAGE INDUSTRIES COMMISSION

## 160. SHRI LALLU SINGH:

COL. SONARAM CHOUDHARY:

SHRI GOPAL SHETTY:

SHRI SADASHIV LOKHANDE:

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

- (a)   the objectives and functions of the Khadi and Village Industries Commission (KVIC);
- (b) whether  the  Government  proposes  to  enhance  the  targets  for  loan  disbursement  to unemployed youths through KVIC in the country;
- (c) if  so,  the  details  thereof  along  with  the  targets  fixed  and  achieved  for  the  loan disbursement by the KVIC and the number of persons benefited therefrom during each of the last three years, State/UT-wise; and
- (d) the other steps taken by the Government to promote khadi and village industries in the country?

## ANSWER

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

- (a): The main objectives of KVIC include:-
- (i) social objective of providing employment in rural areas;
- (ii) economic objective of producing saleable articles; and
- (iii) wider objective of creating self-reliance amongst people and building up a strong rural community spirit.

The functions of KVIC include:-

- (i) planning and organizing capacity building programmes.
- (ii) build up reserves for supply of raw material and  to persons engaged or likely to be engaged in production of handspun  yarn or khadi or village industries at  such rates as the Commission may decide;
- (iii) to encourage and assist in the creation of common service facilities for all activities related to production and marketing of KVI products;
- (iv) to promote the sale and marketing of KVI products;
- (v) to  encourage and  promote research in the technology used in  KVI sector including non-conventional energy;
- (vi) to provide financial for development and upgradation of designs, prototypes and other technical information including quality assurance.

- (b): Yes Madam.
- (c): For the year 2016-17, the targets have been enhanced as follows:

| Physical Target (Number of projects)    | 55200          |
|-----------------------------------------|----------------|
| Financial Target (Margin Money Subsidy) | Rs.1100 crore  |
| Employment to be generated              | 441600 persons |

State/UT-wise details  of  PMEGP  scheme for the  years  2012-13,  2013-14  and  2014-15  are provided in Annexure-I.

- (d): Government is implementing the following programmes for promotion of Khadi and Village Industries:

Market Promotion Development Assistance (MPDA) scheme - 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.

Interest  Subsidy  Eligibility  Certificate  (ISEC)  for  Khadi  &  Polyvastra  -  Under  the Scheme, credit at the concessional rate of interest is made available as per the requirement of the institutions. The institution is required to pay only 4%.  Any interest charged by banks over 4% will be paid by Central Government through KVIC.  All khadi institutions registered with  the  KVIC/State  Khadi  and  Village  Industries  Boards  (KVIBs)  can  avail  of  financing under the ISEC scheme.

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.

* * *

## Annexure-I referred to in reply to part (c) of the Lok Sabha Unstarred Question  No. 160 for answer on 25.04.2016

## State/UT-wise details of PMEGP during the years 2013-14, 2014-15 & 2015-16

## 2013-14

| Sr. No .   | State/UT                 |   Margin money subsidy allocated (Rs. lakh) |   Margin money subsidy utilized # (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|------------|--------------------------|---------------------------------------------|----------------------------------------------|-------------------------------|---------------------------------------------------|
| 1          | Jammu& Kashmir           |                                     2983.59 |                                      3226.2  |                          1855 |                                             12301 |
| 2          | Himachal Pradesh         |                                     1730.87 |                                      1613.84 |                          1112 |                                              5188 |
| 3          | Punjab                   |                                     2665.96 |                                      2477.06 |                           979 |                                              7629 |
| 4          | UT Chandigarh            |                                      304.74 |                                        59.11 |                            55 |                                               385 |
| 5          | Uttarakhand              |                                     1934.23 |                                      2099.99 |                          1236 |                                              7335 |
| 6          | Haryana                  |                                     2771.26 |                                      2075    |                           935 |                                              5866 |
| 7          | Delhi                    |                                     1075.38 |                                       164.74 |                           142 |                                              1136 |
| 8          | Rajasthan                |                                     5554.14 |                                      4064.94 |                          1280 |                                             13471 |
| 9          | Uttar Pradesh            |                                    13786.3  |                                     15104.9  |                          4354 |                                             44044 |
| 10         | Bihar                    |                                     8675.93 |                                      7725.19 |                          3121 |                                             20013 |
| 11         | Sikkim                   |                                      584.56 |                                       108.09 |                            66 |                                               255 |
| 12         | Arunachal Pradesh        |                                     1852.57 |                                       889.42 |                           657 |                                              6570 |
| 13         | Nagaland                 |                                     1705.43 |                                      1125.77 |                           421 |                                              4373 |
| 14         | Manipur                  |                                     1557.67 |                                      1591.34 |                           733 |                                              5277 |
| 15         | Mizoram                  |                                     1117.83 |                                       886.4  |                           777 |                                              5050 |
| 16         | Tripura                  |                                     1163.93 |                                      2225.25 |                          1307 |                                              9074 |
| 17         | Meghalaya                |                                     1333.04 |                                       600.13 |                           397 |                                              1386 |
| 18         | Assam                    |                                     6210.97 |                                      7393.07 |                          8255 |                                             29332 |
| 19         | West Bengal              |                                     4627.57 |                                      5596.72 |                          3216 |                                             24189 |
| 20         | Jharkhand                |                                     4738.31 |                                      4533.11 |                          2612 |                                             13062 |
| 21         | Odisha                   |                                     5854.95 |                                      4075.76 |                          2146 |                                             16653 |
| 22         | Chhattisgarh             |                                     3623.56 |                                      2118.61 |                           921 |                                              6106 |
| 23         | Madhya Pradesh           |                                     8466.23 |                                      7973.02 |                          2462 |                                             19442 |
| 24         | Gujarat*                 |                                     4375.58 |                                      4401.81 |                           914 |                                             14777 |
| 25         | Maharashtra **           |                                     6539.82 |                                      4737.62 |                          2186 |                                             20183 |
| 26         | Andhra Pradesh           |                                     4829.17 |                                      4610.54 |                          1453 |                                             18200 |
| 27         | Karnataka                |                                     4538.84 |                                      7837.31 |                          2778 |                                             25752 |
| 28         | Goa                      |                                      490.68 |                                       143.86 |                            79 |                                               412 |
| 29         | Lakshadweep              |                                      758.55 |                                         3.18 |                             4 |                                                 8 |
| 30         | Kerala                   |                                     2278.34 |                                      2756.94 |                          1505 |                                             11507 |
| 31         | Tamilnadu                |                                     4969.7  |                                      5216.93 |                          2268 |                                             29107 |
| 32         | Puducherry               |                                      781.12 |                                        43.17 |                            43 |                                               170 |
| 33         | Andaman& Nicobar Islands |                                      619.2  |                                       164.94 |                           224 |                                               654 |
|            | Total                    |                                   114500    |                                    107644    |                         50493 |                                            378907 |

2014-15

| Sr. No.   | State/UT                 |   Margin money subsidy allocated (Rs. lakh) |   Margin money subsidy utilized# (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | Jammu& Kashmir           |                                     2919.5  |                                     3274.63 |                          1565 |                                             11025 |
| 2         | Himachal Pradesh         |                                     1687.45 |                                     2237.73 |                          1244 |                                              6352 |
| 3         | Punjab                   |                                     2611.49 |                                     3190.88 |                          1153 |                                              6438 |
| 4         | UT Chandigarh            |                                      287.99 |                                       61.46 |                            36 |                                               160 |
| 5         | Uttarakhand              |                                     1882.35 |                                     2153.32 |                          1333 |                                              7889 |
| 6         | Haryana                  |                                     2716.36 |                                     3012.98 |                          1175 |                                              7024 |
| 7         | Delhi                    |                                     1061.04 |                                      189.24 |                           198 |                                              1584 |
| 8         | Rajasthan                |                                     5369.78 |                                     5249.62 |                          1976 |                                             15002 |
| 9         | Uttar Pradesh            |                                    13239.4  |                                    16937.5  |                          4891 |                                             48604 |
| 10        | Bihar                    |                                     8277.14 |                                     4111.32 |                          1639 |                                              9240 |
| 11        | Sikkim                   |                                      541.34 |                                       33.52 |                            16 |                                                54 |
| 12        | Arunachal Pradesh        |                                     1793.42 |                                     1004.99 |                           652 |                                              2871 |
| 13        | Nagaland                 |                                     1563.64 |                                      878.59 |                           416 |                                              2407 |
| 14        | Manipur                  |                                     1403.65 |                                     1600.76 |                           747 |                                               829 |
| 15        | Mizoram                  |                                     1043.39 |                                      807.98 |                           817 |                                              6736 |
| 16        | Tripura                  |                                      985.02 |                                     1333.65 |                           787 |                                              6333 |
| 17        | Meghalaya                |                                     1184.8  |                                      971.14 |                           555 |                                              3680 |
| 18        | Assam                    |                                     5388.74 |                                     5397.01 |                          5015 |                                             15535 |
| 19        | West Bengal              |                                     4396.32 |                                     6010.11 |                          3397 |                                             24646 |
| 20        | Jharkhand                |                                     4547.06 |                                     2871.29 |                          1699 |                                              8495 |
| 21        | Odisha                   |                                     5621.47 |                                     3945.89 |                          2013 |                                             10211 |
| 22        | Chhattisgarh             |                                     3474.41 |                                     2045.68 |                           847 |                                              5821 |
| 23        | Madhya Pradesh           |                                     8182.74 |                                     9241.7  |                          2737 |                                             21896 |
| 24        | Gujarat*                 |                                     4246.72 |                                     6200.52 |                          1289 |                                             18107 |
| 25        | Maharashtra **           |                                     6299.38 |                                     7843.81 |                          3469 |                                             28311 |
| 26        | Andhra Pradesh           |                                     2667.87 |                                     3492.11 |                           937 |                                             12220 |
| 27        | Telangana                |                                     1954.44 |                                     1889.35 |                           604 |                                              6604 |
| 28        | Karnataka                |                                     4412.99 |                                     6479.1  |                          2431 |                                             21825 |
| 29        | Goa                      |                                      466.91 |                                      141.76 |                            78 |                                               406 |
| 30        | Lakshadweep              |                                      704.68 |                                       28.61 |                            31 |                                                93 |
| 31        | Kerala                   |                                     2206.51 |                                     2679.28 |                          1344 |                                              9738 |
| 32        | Tamilnadu                |                                     4824.96 |                                     6733.89 |                          2858 |                                             36190 |
| 33        | Puducherry               |                                      749.95 |                                      112.1  |                            58 |                                               386 |
| 34        | Andaman &Nicobar Islands |                                      593.09 |                                       92.32 |                           161 |                                               790 |
|           |                          |                                   109306    |                                   112254    |                         48168 |                                            357502 |

#  including un-utilized  balance funds of previous year.

* including Daman & Diu.

** including Dadra & Nagar Haveli

## 2015-16

| Sr.No.   | State/UT          |   Margin Money Allocated (RE)(Rs.in lakh) |   Margin Money disbursed by Bank (Rs. in lakhs) |   No. of projects |   Emp. Generated |
|----------|-------------------|-------------------------------------------|-------------------------------------------------|-------------------|------------------|
| 1        | UT Chandigarh     |                                    100    |                                           87.72 |                43 |              323 |
| 2        | Delhi             |                                   1753.4  |                                          254.05 |               256 |             2048 |
| 3        | Haryana           |                                   3747.4  |                                         3112.09 |              1248 |             7232 |
| 4        | Himachal Pradesh  |                                   1912.87 |                                         1767.26 |              1077 |             5134 |
| 5        | Jammu &Kashmir    |                                   4006.8  |                                         3781.19 |              2207 |            12115 |
| 6        | Punjab            |                                   3506.8  |                                         2902.97 |               966 |             7762 |
| 7        | Rajasthan         |                                   5260.43 |                                         4384.07 |              1988 |            14537 |
| 8        | A &NIslands       |                                    168    |                                           65.11 |               119 |              293 |
| 9        | Bihar             |                                   6557.2  |                                         6588.55 |              2430 |            19624 |
| 10       | Jharkhand         |                                   3825.6  |                                         3559.74 |              1839 |            12873 |
| 11       | Orissa            |                                   6282    |                                         5736.32 |              2876 |            17629 |
| 12       | West Bangal       |                                   4188    |                                         3400.65 |              1873 |            12746 |
| 13       | Arunachal Pradesh |                                   1932.77 |                                           38.85 |                35 |              104 |
| 14       | Assam             |                                   4069.87 |                                         2869.74 |              3483 |             9026 |
| 15       | Manipur           |                                   2023.23 |                                         1213.98 |               685 |             2715 |
| 16       | Meghalaya         |                                   1250.63 |                                         1056.12 |               603 |             4824 |
| 17       | Mizoram           |                                    909.6  |                                         1026.35 |              1134 |             9072 |
| 18       | Nagaland          |                                   1250.63 |                                         1392.81 |               623 |             4998 |
| 19       | Tripura           |                                   1909.54 |                                          945.84 |               642 |             5355 |
| 20       | Sikkim            |                                    454.77 |                                          186.11 |               110 |              397 |
| 21       | Andhra Pradesh    |                                   3572.28 |                                         2262.37 |               642 |             7740 |
| 22       | Telangana         |                                   2094    |                                         2217.57 |               660 |             7761 |
| 23       | Karnataka         |                                   8782    |                                         5898.01 |              2140 |            17284 |
| 24       | Kerela            |                                   2731.6  |                                         2720.48 |              1369 |             9653 |
| 25       | Lakshadweep       |                                    100    |                                            0    |                 0 |                0 |
| 26       | Pondicherry       |                                    200    |                                          106.37 |                65 |              447 |
| 27       | Tamilnadu         |                                   7100.8  |                                         5497.54 |              2463 |            20836 |
| 28       | Goa               |                                    318.82 |                                          165.43 |                91 |              500 |
| 29       | Gujarat*          |                                   6260.2  |                                         6339.73 |              1419 |            14960 |
| 30       | Maharashtra**     |                                   9238.38 |                                         5285.03 |              2497 |            20161 |
| 31       | Chattisgarh       |                                   4303.8  |                                         2829.38 |              1277 |             9496 |
| 32       | Madhya Pradesh    |                                   8129.4  |                                         8117.17 |              1979 |            16497 |
| 33       | Uttarakhand       |                                   2072.2  |                                         1740.86 |              1136 |             6161 |
| 34       | Uttar pradesh     |                                  15455    |                                        14456.9  |              4365 |            43059 |
|          | Total             |                                 125468    |                                       102006    |             44340 |           323362 |