MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI GIRIRAJ SINGH)
(a): Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the following schemes through Khadi and Village Industries Commission (KVIC) and Coir Board for promotion of Agro-based Cottage Industries in the country:
i) 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.
ii)Scheme of Fund for Regeneration of Traditional Industries (SFURTI) from 2005-06 for making Traditional Industries more productive and competitive by organizing the Traditional Industries and artisans into clusters. The Scheme envisages providing need-based assistance for replacement of production equipment, setting up of common facility centres (CFC), product development, quality improvement, improved marketing, training and capacity building etc.
iii) A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE) was launched on 18.3.2015 to promote Innovation and Rural Entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation.
I. Khadi and Village Industries Commission (KVIC):
i) Market Promotion Development Assistance (MPDA) – A unified scheme by merging 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 network of Khadi & VI products. Under the Modified MDA (MMDA) financial assistance at 30% of the Prime Cost, is distributed amongst Producing Institutions (40%), Selling Institutions (20%) and Artisans (40%).
ii) 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 the Government of India through KVIC to the banks.
iii) 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.
iv) 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 normalcy 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.
v) Khadi Reform and Development Programme (KRDP) aims to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinners and weavers, increased artisans’ welfare and to achieve synergy with village industries. Under KRDP, restructured amount of US$ 105 million has been negotiated with Asian Development Bank (ADB) and funds are being provided to the Government of India to be released to KVIC as ‘grants-in-aid’ under budgetary allocation through the Ministry of MSME. Khadi Reform Package envisages reform support in the following areas: (i) Artisan Earnings and Empowerment, (ii) Direct Reform Assistance to 400 Khadi Institutions & (iii) Implementation of a well-knit MIS
II. Coir Board:
Coir Board is implementing the Coir VikasYojana to cater to the multiple developmental needs of coir industry. Interventions under the following components of the Scheme are taken up during the period from 2017-18 to 2019-20.
1. Skill Upgradation and Mahila Coir Yojana (MCY): Development of skilled manpower in coir industry in different facets of coir production and processing through appropriate training programmes, seminars, workshops, awareness programmes, exposure visits etc. is the major objective under Skill Upgradation and Mahila Coir Yojana(MCY). Only trainings to the unemployed women will be provided under Mahila Coir Yojana. EDP, National Seminar, Awareness programme, Workshop, Exposure Tour may also be provided under Mahila Coir Yojana. The financial assistance for procurement of equipments/machineries may be obtained under the PMEGP scheme by the trained women for setting up coir units. Priority will be given to the trained women under PMEGP. Under skill upgradation and Mahila Coir Yojana honorarium shall be kept as Rs.15, 000/-p.m. for trainer and Rs.3000/- p.m. for trainee subject to the norms of NSQF compliance.
2. Coir Industry Technology Upgradation Scheme (CITUS):In the wake of the need for adoption of the modernisation happening in the sector and to encourage entrepreneurs to start coir processing unit of optimum/ economic size, the present level of assistance is found to be inadequate. Accordingly, a new component titled CITUS is proposed in the umbrella scheme replacing the existing Development of Production Infrastructure (DPI). The scheme shall be applicable for small and medium coir units only. The Scheme could be availed for both green field and brown field projects. The Project cost considered for subsidy would be exclusively for plant and machinery. No building/ land cost will be added in the project cost. The project can be setup a fresh or existing project may be considered for upgradation/ adoption of technology. The quantum of assistance to be disbursed as Government assistance (subsidy) is 25% of the investment in plant and machinery subject to a maximum of Rs.2.5 crore per unit.
3. Export Market Promotion (EMP): This programme is aimed towards developing and improving the export performance of Indian Coir Sector through various export market promotion activities such participation in Buyer Seller Meet, sponsoring delegations, participation in seminars and conferences abroad, organising participation in international fairs, extending financial assistance to micro, small and medium enterprises and exporters, presenting Coir Industry Awards on an annual basis to recognize the outstanding performance in the areas of export, domestic trade, R&D, best performing units and co-operatives etc.
4. Domestic Market Promotion (DMP): This plan programme envisages the development of domestic market for coir and coir products through appropriate measures for popularization including publicity and propaganda. Participation in fairs/exhibitions organized by other agencies and organizing exclusive fairs for coir and coir goods within the country are also taken up as steps to popularize the technologies, schemes and services and to increase the awareness of coir products and to enhance its consumption inside the country. The grant provided under Market Development Assistance to State supported organizations and co-operatives to the tune of 10% of their average annual sales turnover of coir products for enlarging marketing network, improving the quality standards, product development / diversification, innovative marketing etc. The grant of MDA which is shared on 1:1 basis by the Central Government through Coir Board and the states / UTs concerned is a major activity under this component of the Scheme.
5. Trade and Industry Related Functional Support Services (TIRFSS): In order to provide a systematic feedback of information, assisted by modern information technology to improve the effectiveness of delivery of services, and identifying appropriate policy initiatives by Coir Board for the planned and rapid development of Coir Industry, this component of the Scheme is being implemented by the Coir Board.
6. Welfare Measures (Group Personal Accident Insurance Scheme): The Group Personal Accident Insurance Scheme for Coir Workers is aimed at providing insurance coverage against accidental death, permanent total disability and permanent partial disability to the coir workers in all coir producing states in India. Now the scheme has been converged with Pradhan Mantri Surksha Bima Yojana (PMSBY). The premium for the insurance coverage is met in full by the Board.
7. Plan Science & Technology: Coir Board is implementing the Science and Technology Scheme to meet the Research and Development needs for its transformation into a modern industry. Modernisation of Production Process, Development of Machinery and Equipments, Product Development and Diversification, Development of Environment friendly technologies, Technology Transfer, Incubation, Extension of Testing and Service Facilities, Providing Incentive for using Natural Dyes and acquiring Intellectual Property Rights (IPR) are the major activities undertaken in this programme. The R&D activities are undertaken through the Coir Board’s twin research institutes viz, Central Coir Research Institute (CCRI), Kalavoor, Kerala and Central Institute of Coir Technology (CICT), Bangalore. The efforts of these research institutes have lead to the development of a few remarkable machinery items which helped enhancement of productivity of the workers and betterment of quality of the products. The institutes have also developed several eco-friendly technologies and diversified products. The new technologies developed by the institutes are transferred to the industry promptly.
(b)&(c): Government has no specific proposal/scheme for establishment of agriculture-based cottage industries in the country. State-wise details of Margin Money allocated and utilized, job opportunities created and number of units set up under PMEGP Scheme during the last three years and current year is placed at Annexure-I. State/UT-wise number of beneficiaries benefitted under Workshed Scheme during the last three years and current year is placed at Annexure-II. State/UT-wise subsidy released and employment generated under Coir Board schemes during the last three years and current year is placed at Annexure-III.
(d): The other steps taken by the Government to promote agro-based cottage industries through KVIC is placed at Annexure-IV.
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