TO BE ANSWERED ON 16.11.2016


Promotion of Khadi and Village Industries




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

(a)    What measures have been taken post-2014 to promote Khadi and Village Industries, what kind of success these efforts have achieved and what are its most prominent indicators;

(b)    What is the nature of relationship, if any, between KVIC at the centre and KVI Boards at the State level; and

(c)     Whether Government ever assessed the performance of State KVI Boards, which are the top best performing KVI Boards?







(a) to (c):             A statement is laid on the table of the House.



(a):         Khadi and Village Industries Commission (KVIC) has taken several initiatives to promote khadi and village industries sectors.

1)                  Initiatives under Khadi

i)                    Existing scheme of Market Development Assistance (MDA) has been revised and a unified scheme of Market Promotion Development Assistance (MPDA) has been approved.  The modified scheme has increased quantum of assistance to the artisans from 25% to 40%.

ii)                  An online system has been made operational for disbursement of Market Promotion Development Assistance (MPDA) to Khadi Institutions and artisans. This has enabled Khadi and Village Industries Commission to transfer funds online to artisans and khadi institutions through Direct Benefit Transfer (DBT).

iii)                The earlier cost chart has been done away with and institutions have been provided flexibility for market linked pricing of their products so that the institutions can earn sufficient surplus to enhance earning for the artisans.

iv)                KVIC has introduced an online system for issue of khadi certificate to enable entrepreneurs to register themselves for obtaining khadi certificate and start production of khadi. 

2)                  Initiatives under Marketing

i)                    KVIC has taken up designing and marketing of products targeting the youth of the country including introduction of khadi denim and khadi T-shirts.

ii)                   KVIC has put in place the franchisee system for setting up of new outlets in different parts of the country.

iii)                 185 Khadi Institutions (KIs) outlets have been modernized and computerized resulting in increase in sales in the range of 20% to 30%.

iv)                KVIC as well as Khadi institutions are working with the reputed retailers to offer suitable online platform for retailing khadi and khadi products through digital marketing.

v)                  KVIC has given ‘Khadi Mark’ certification to groups such as Raymond’s, Arvind Mills, Peter England – Birla group etc. for increasing sale of khadi.

vi)                 KVIC has taken steps for supplies to departments and Central Public Sector Undertakings.

vii)               KVIC is working with reputed fashion designers to make khadi products more appealing to the youth by introducing unique design and style.

viii)              KVIC has launched Khadi Gift Coupon & Khadi Gift hampers.

3)                  Initiatives under Prime Minister’s Employment Generation Programme (PMEGP)

i)                    PMEGP scheme has been modified to enable ‘Khadi’ to be financed under PMEGP.

ii)                   PMEGP web portal has been set up making the scheme online.  The application form has also been simplified to a single page.  Web portal provides for filing applications online, processing the applications, forwarding the application to banks, sanction by the banks, disbursement of Margin Money subsidy into the account of the beneficiaries and also the Management Information System (MIS) online.   This has brought about transparency and accountability as well as reduced the time taken for processing of the applications.

iii)                 Identity Cards to PMEGP unit are issued to establish credibility with external agencies and State Govt. authorities. It also enables KVIC to obtain database of PMEGP entrepreneurs including linking the same with marketing, export, technology up-gradation.

iv)                 314 Model Projects and two video on “Production of Khadi cloth and garment” and “Handmade Paper unit” have been prepared and put up on KVIC website for the benefit of potential beneficiaries.150 model projects prepared by National Small Industries Corporation (NSIC) have also been linked to the website.

v)                  In order to ensure that the delays in Entrepreneurship Development Programme (EDP) training is reduced, KVIC has entered into an agreement with National Academy of Rural Development and Self Employment Training Institute (RUDSETI) for conduct of EDP training for PMEGP applicants as well as handholding and mentoring them for a period of two years. 

4) Initiatives under Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

i)                    Revised Guidelines of Revamped SFURTI have been issued for faster implementation and quicker grounding of the clusters.

ii)                   Reputed academic and professional institutions have been empaneled as Technical Agencies.  These organizations are playing a vital role in the process of execution of SFURTI Clusters.

iii)                 SFURTI web portal has been set up for submitting the proposals as well as monitoring and implementation of the scheme

5)                  Initiatives under Capacity Building

i)                    To make all the training centres self-sustainable, a new policy has been introduced wherein training courses on self-financing basis and also through professional training associates have been introduced to generate revenues.

ii)                   Initiatives have been taken for e-learning module to create awareness and cover more number of candidates. This e-Entrepreneur Awareness Programme (e-EAP) will also facilitate more Entrepreneurship Development Programmes.

The initiatives taken by KVIC have made a tremendous improvement in performance of KVI sector.  The Khadi sector has shown a 31% increase in production and 39% in sales, while the Village industries sector has shown a 29% increase in production and 31% in sales over the last two years, i.e. 2014-15 and 2015-16.

 (b):     Khadi and Village Industries Commission is a statutory body set up under the Khadi and Village Industries Commission Act.  State Khadi Village Industries Boards (KVIBs) have been set up under separate statutes of the State Governments concerned.  Thus, as per law, Khadi and Village Industries Commission is not a supervisory body of any State Khadi and Village Industries Board.  However Six State Khadi and Village Industries Boards are represented by their Chairpersons, one from each zone by annual rotation in the National Khadi and Village Industries Board (NKVIB). Further, there is a working relationship between KVIC and KVIBs and a number of schemes of the Ministry of Micro, Small and Medium Enterprises where implementation is through Khadi and Village Industries Commission are getting implemented through State Khadi and Village Industries Board. For example, Khadi and Village Industries Boards are major partners in implementation of Prime Minister’s Employment Generation Programme.  Khadi institutions registered with State Khadi and Village Industries Boards also get marketing promotion and development assistance, which is given to the Khadi Institutions registered with Khadi and Village Industries Commission.  Usually, whenever other meetings are held at State level, the State Khadi and Village Industries Boards are also involved.

(c):       As mentioned in reply to (b) above, the State Khadi and Village Industries Boards are separate statutory bodies functioning under the statutes enacted by the State Governments concerned.  The Khadi and Village Industries Commission however, has instituted National Awards to two top best performing Khadi and Village Industries Board and the performance is measured on implementation of the KVIC schemes, recoveries and payment of dues, proper maintenance of accounts system, performance under PMEGP etc as parameters.  During the year 2014-15, Karnataka State Khadi and Village Industries board and Manipur State Khadi and Village Industries board have got the award.


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