Lok Sabha Question No. 3319 (UNSTARRED), answered on 2026-03-12
Subject: Rozgar Yukt Gaon Scheme in Khadi Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Manju Sharma

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

## LOK SABHA UNSTARRED QUESTION NO. 3319 TO BE ANSWERED ON 12.03.2026

## ROZGAR YUKT GAON SCHEME IN KHADI SECTOR

## 3319.   SMT. MANJU SHARMA:

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

- (a) whether the Government has approved the Rozgar Yukt Gaon (RYG) scheme to initiate an enterprise-based business model in the Khadi sector and if so, the details thereof;
- (b) the villages covered and the amount of funds spent under the said scheme, State-wise; and
- (c) the steps being taken by the Government for the development of village-based industries?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): Rozgar Yukt Gaon (RYG) scheme, a component of the Khadi Vikas Yojana (KVY), was approved with the aim of introducing an enterprise-led model in 50 villages and an amount of Rs. 41.00 crore was earmarked in 2019-20. Despite all efforts made by the Khadi and Village Industries Commission (KVIC), the RGY scheme could not proceed due to implementation issues at field level and Covid-19 pandemic situation during that period. Consequently, the scheme lacked feasibility and was discontinued with effect from FY 2021-22.

- (c): The Government has taken following steps for the development of village-based industries:
- (i)  Khadi  and  Village  Industries  Commission  (KVIC),  a  statutory  body  under  the  Ministry  is implementing Gramodyog Vikas Yojana (GVY) for the development of Village industries, in which training is being imparted to rural and traditional artisans and provides tools/equipment's and  hand  holding  support  under  various  verticals  of  village  industries  like  Mineral  Based Industry (MBI), Agro Based and Food Processing Industry (ABFPI),

Wellness  and  Cosmetic  Industry  (WCI),  Handmade  Paper,  Leather  and  Plastic  Industry (HPLPI), Rural Engineering and New Technology Industry (RENTI) and Service Industry.

- (ii)  Ministry  of  MSME,  through  KVIC,  is  implementing  the  Prime  Minister's  Employment Generation  Programme  (PMEGP)  as  a  central  sector  scheme  aimed  at  assisting  prospective entrepreneurs  in  setting  up  new  micro  enterprises  primarily  in  rural  areas  for  generation  of sustainable employment opportunities in the non-farm sector.  Under PMEGP, around 80% of the total units supported are from rural areas, primarily in the village industries activities such as beekeeping, cottage match industry, fireworks and agarbatties, cottage pottery and soap making, cottage leather industry, Ghani  oil  processing,  manufacture  of  cane-gur  and  khandsari, processing, packaging and marketing of cereals, pulses, spices and condiments; manufacture of manure  from  cow  dung  and  other  waste  products,  lime-based  industries,  fruit  and  vegetable processing,  bamboo  and  cane  work,  blacksmithy,  carpentry,  manufacture  of  aluminium household utensils, manufacture of katha and gum, poly-vastra works, processing of maize and ragi, and manufacture of rubber goods.

- (iii) Coir Board, a statutory body under the Ministry is implementing Coir Vikas Yojana aimed at promoting sustainable development, growth and support for coir artisans and the coir industry across the country. Under the scheme, steps being taken for the development of village-based coir industries including development of new technologies, machines and value-added products and  their  dissemination  to  coir  entrepreneurs,  units  and  artisans;  imparting  training  and certificate/diploma courses for skill upgradation.

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