Question : EXPANSION OF COTTAGE INDUSTRIES



(a) whether there are possibilities for further expansion of cottage industries in the country;

(b) if so, the details thereof; and

(c) the schemes for promotion, development and expansion of these industries?

Answer given by the minister




THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SMALL SCALE INDUSTRIES AND AGRO AND RURAL INDUSTRIES (SMT. VASUNDHARA RAJE)

(a): Yes, Sir.

(b) & (c): The Government provides financial assistance in the form of grant and loan to the Khadi and Village Industries Commission (KVIC) for the development of Khadi and Village Industries. Under the Khadi programme, financial assistance is being provided to the implementing agencies in the form of `rebate` and Interest Subsidy. For the development of village industries, Margin Money Scheme is being implemented. The Government has also launched a National Programme for Rural Industrialisation under which rural clusters are established every year. The KVIC has achieved total production to the level of Rs. 5112.37 crores during 1998-99 which can be increased manifold.