Promotion of Khadi and Village Industries : Schemes

Promotion of Khadi and Village Industries : Schemes

Question: Promoting khadi and village industries across the nation will boost the growth of this sector. Discuss the recent schemes which have been undertaken for promotion of khadi and village industries in India.

• Khadi and Village Industries Commission/KVIC has implemented numerous schemes for holistic development as well as promotion of khaki and village/KV industries in India.

• This includes:
- Border areas
- Hilly areas
- LWE affected areas
- Coastal Regions


A. Schemes

• Market Development Assistance (MDA): Assistance of 20% of value of production khaki and polyvastra are shared among artisans, producing institutions and selling institutions in ratio 25:30:45

• Interest Subsidy Eligibility Certification (ISEC): This scheme is for providing bank loans for polyvastra and khadi at subsidised interest rates

• Workshed Scheme for Khadi Artisans: Providing assistance for building work-sheds

• Scheme of Fund for Regeneration of Traditional Industries (SFURTI): KV industries get assistance for:

- Replacement of obsolete machinery
- Opening common facilities centres
- Product development
- Market Promotion
- Other Support

• Khadi Karigar Janashree Bima Yojana : This scheme will provide insurance cover to khadi artisans

• Khadi Reform and Development Programme (KRDP) for revitalising the KV sector through:

- Enhanced sustainability of khadi
- Increased income for spinners and weavers
- Employment for them
- Enhancing welfare of artisans
- Synergy of khadi with village industries

• KVI Programme in LWE areas: The KVI Programme has been launched in LWE/Left Wing Extremism, Hill and Border areas in respect of 100 institutions with financial assistance adding to INR 76 crores

• Relaxation is given in criteria of selection of institutions and lowest number of artisans associated with Hill, Border and LWE affected areas.

• Prime Minister’s Employment Generation Programme/PMEGP: This is being implemented through MSME via banks with KVIC as a nodal agency at national level

• This includes LWE areas, border cities, hilly areas and coastal regions through establishment of micro-enterprises in non farm sector

• Under PMEGP, general category beneficiaries can avail margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas

• For special category beneficiaries such as women, minorities and OBC, margin money subsidy is 35% in rural areas and 25% in urban areas

• Maximum cost of project is INR 25 lakh in manufacturing sector and 10 lakh in urban sector

Facts and Stats

• The government has also taken steps for strengthening the infrastructure of weak khadi institutions

• Centre also provides marketing infrastructure assistance

• KVIC is a statutory body established by a Parliament Act in 1956

• In April 1957, it took over the areas of functioning of former All India Khadi and Village Industries Board

KVIC aims at:

• Social objective of job creation

• Economic objective of marketable products

• Wider objective of creating economic independence of the poor and a strong rural community spirit