GOVERNMENT OF INDIA
Ministry of Micro, Small and Medium Enterprises

RAJYA SABHA
UNSTARRED QUESTION NO. 1019
ANSWERED ON DECEMBER 03, 2012

QUESTION
Strengthening of Khadi and Village Industries Sectors

1019. SHRI RAJEEV CHANDRASEKHAR:

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

(a)   whether Government and Khadi and village Industries Commission (KVIC) have taken steps for strengthening Khadi and Village Industries Sectors in the Karnataka State; and

(b)   if so, the details thereof with results achieved in the State?

ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI K.H. MUNIYAPPA)

(a) & (b): Sir, Khadi and village Industries Commission (KVIC) is implementing a number of schemes for strengthening of khadi and village industries (KVI) sector in the country including Karnataka. These include: (i) Market Development Assistance (MDA), (ii) Interest Subsidy Eligibility Certificate (ISEC), (iii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI), (iv) Khadi Reform and Development Programme (KRDP), (v) Product Development, Design Intervention and Packaging (PRODIP), (vi) Work shed Scheme for Khadi Artisans and (vii) Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure. The production of khadi and village industries (KVI) products in Karnataka has been as below:

KVIC is also implementing a credit-linked subsidy scheme named Prime Minister's Employment Generation Programme (PMEGP) from 2008-09 for generating self-employment through establishment of micro-enterprises in the non-farm sector. 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 scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to NER, hill and border areas etc., the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector. From its inception in 2008-09 till 31 October 2012, 7082 micro-enterprises in Karnataka have been provided margin money assistance of Rs. 146.39 crore.