Post on 08-Mar-2018
ANNUAL REPORT
GOVERNMENT OF INDIAMINISTRY OF AGRO & RURAL INDUSTRIES
2004-2005
ContentsChapter Page No.
I An Overview 1
II Khadi and Village Industries Sector/KVIC 6
III Rural Employment Generation Programme (REGP) 21
IV Coir Sector/Coir Board 31
V Prime Minister’s Rozgar Yojana 42
VI ARI Activities in the North Eastern Region 49
VII Summary of the C&AG Report 57
VIII Use of Official Language 59
IX Vigilance Activities 61
X Citizens Charter 63
Charts
KVIC
I. Khadi - Production & Sales (Rs. Crore) 19
II. Khadi - Employment Generation (Lakh persons) 19
III. Performance Indicators - Khadi & V.I. Employment (Lakh persons) 20
IV. Performance Indicators - Khadi & V.I. Production & Sales 20
REGP
V. Cumulative Number of Projects 29
VI. Cumulative Employment (Lakh persons) 29
VII. Cumulative Investment (Rs. Crore) 30
VIII. Cumulative Margin Money (Rs. Crore) 30
TablesPage No.
A. Summary of the outlays 2
B. Performance of KVI sector 9
C. REGP - Permissible Margin Money Assistance 22
D. REGP - Achievements during 10th Plan period 24
E. Categorywise distribution of REGP projects: Number of projects sanctioned 24during 2004-05 (up to 15 January 2005)
F. Cost-wise Range of REGP distribution of units under REGP 24during 2004-05 (up to 15 January 2005)
G. Zone-wise, State-wise & Group-wise Performance of 26REGP-Project Setup 2003-2004
H. Zone-wise, State-wise & Group-wise Performance of REGP- 27Margin Money Utilisition 2003-2004
I. Zone-wise, State-wise & Group-wise Performance of 28REGP-Employment 2003-2004
J. Production of Coir and Coir Products during the 10th Plan period 31
K. Consumption of Coir and Coir Products 32
L. Budgetary Support to the Coir Board by the Government 39during the 10
th Plan period
M. Production of Hindustan Coir matting during the 10th Plan period 39
N. Number of Persons Trained under PMRY during 10th plan period 44
O. Cumulative Status of Progress under the PMRY Scheme during 10th Plan Period 46
P. Details of budget allocations and expenditure incurred under PMRY 47during the Tenth Plan period
Q. Achievements made in terms of production and employment 50in the KVI sector during the 10
th Plan period in the NE Region
R. During the year 2004-05 (up to 15 January 2005), the number of projects 51set up in the NE Region alongwith amount of margin money utilizedand employment generated.
S. The State-wise (cumulative) target and the progress of the PMRY Scheme 54in the NE States during 10
th plan from 2002-03 to 2004-05 (up to January 2004)
based on the reports received from the RBI
T. State-wise details of funds released to North Eastern States including Sikkim 55from 2002-03 to 2004-05 under PMRY during the 10
th Plan period
U. Recovery of PMRY Loan in North Eastern Region 56
1
Chapter I
AN OVERVIEW
1.0 BACKGROUND
In the new millennium, growing
international trade and globalisation create
unprecedented opportunities as well as several
challenges for our economy, including the small
enterprises sector, which consists of small
scale, agro & rural industries and service/
business entities. As in many other countries,
small enterprises constitute one of the most
vibrant sectors of our national economy and are
also the providers of large scale, widely
dispersed, sustainable employment. In the
context of globalisation, sustainable
employment can be generated by this sector,
with necessary policy and other supports, to
enhance its competitiveness.
1.1 The Ministry of Agro and Rural Industries
(ARI) was set up in September, 2001 with the
objective of co-ordinated and focused policy
formulation and implementation of programmes,
projects, schemes, etc., for the promotion and
development of agro and rural village industries,
with a view to creating more employment
opportunities in the rural non-farm sector, based
on optimal use of local raw materials and skills
as well as interventions for improving the supply
chain, enhancing skills, upgrading technology,
expanding markets and capacity building of the
entrepreneurs/artisans and their groups/
collectives.
1.2 The Ministry operates mainly in the Khadi
and Village Industries and Coir Sector through
the Khadi and Village Industries Commission
(KVIC) and the Coir Board respectively and
coordinating the implementation of two country-
wide employment generation pro-grammes with
the co-operation of State Governments and the
Reserve Bank of India and other banks.
1.3 In the agro and rural industries sector, the
major (village industry/service based) self-
employment generation programmes are the
Rural Employment Generation Programme
(REGP) and the Prime Minister’s Rozgar Yojana
(PMRY). Both are credit-linked subsidy
programmes, aiming at generating self-employ-
ment opportunities. The REGP is primarily
targeted at the rural areas, including small towns
with population up to 20,000. The PMRY, on
the other hand, targets educated unemployed
youth in both rural and urban areas and
provides self-employment opportunities to
them. Under the REGP, 12978 projects have
been financed during 2004-05 (up to 15 January
2005), leading to an estimated additional
employment of 2.57 lakh persons. Of these,
approximately 13 per cent of the projects have
2
benefited persons from the Scheduled Castes
and Scheduled Tribes while 24.78 per cent have
helped women entrepreneurs secure gainful
employment. Similarly, under the PMRY,
70,127 units have been disbursed loans during
2004-05 (up to December 2004) leading to
estimated employment generation for 1,05,190
lakh persons. Of these, 16 per cent belong to
the Scheduled Castes and Scheduled Tribes
and 12 per cent are women.
1.4 The coir industry employs more than 5.5
lakh persons. A majority of them are from the
rural areas and belong to the economically
weaker sections of the society. Nearly 80 per
cent of the coir workers in the fibre extraction
and spinning activities are women. During 2004-
05 (up to December 2004), the coir sector
recorded a total production of Rs. 1525 crore
and export of Rs. 354.88 crore. The sector
generated estimated additional employment of
17500 persons during the said period. This
represent a growth of 17.30 per cent in
production, 21.58 per cent in exports and 4.15
per cent in employment generation.
1.5 The total Tenth Plan outlay for the Ministry
of Agro and Rural Industries is Rs. 2950 crore.
During first two years of the Tenth Plan, an
expenditure of Rs. 1186.03 crore has already
been incurred and Rs. 700 crore have been kept
in 2004-05, at the Revised Estimates (RE)
stage. An amount of Rs. 859 crore of Plan outlay
has been approved in the Budget Estimates
(BE), 2005-06.
2.0 NATIONAL COMMON MINI-MUM PROGRAMME (NCMP)REVAMPING OF THE KHADIAND VILLAGE INDUSTRIESCOMMISSION
2.1 In the NCMP, it has been declared that
the UPA Government will revamp the
functioning of the Khadi and Village Industries
Commission (KVIC) and launch new
programmes for the modernisation of coir,
handlooms, powerlooms, garments, rubber,
cashew, handicrafts, food processing,
sericulture, wool development, leather, pottery
and other cottage industries.
(Rs. crore)
Sr. Name of the Tenth Plan 2002-03 2003-04 2004-05 2005-06No. Organisation/ Scheme (2002-07) (actual) (actual) (RE) (BE)
1. KVIC 2080.00 340.55 423.60 462.00 587.00
2. Coir Board 115.00 13.77 14.52 18.00 23.00
3. PMRY 755.00 168.10 168.01 219.00 219.00
4. Others – Scheme of - - 1.00 30.00Fund for Regenerationof Traditional Industries(SFURTI)
Total 2950.00 522.42 606.13 700.00 859.00
Summary of the outlays
3
2.1 The revamping of the KVIC has been
necessitated mainly because of the steep
decline in employment and nearly stagnant
sales of the Khadi over the past six years, the
need to take effective measures to introduce
modern management practices in the KVIC and
make the Khadi products competitive in the
globalised economy and to generate more
employment opportunities in the rural areas
through the schemes, projects and other
activities of the KVIC.
2.2 Towards these objective, the Government
has dissolved the KVIC with effect from 14
October 2004 and also set up a ten-Member
Expert Committee.
2.3 The terms of reference of the Expert
Committee are:
! to review the existing structure,
functioning and performance of the KVIC
since its inception;
! to review the Khadi and Village Industries
Commission Act, 1956 (No. 61 of 1956),
KVIC Rules 1957 and the Regulations
made thereunder and to recommend
restructuring, along with modifications, if
any, in these statutes, to achieve the
objectives of (a) development of Khadi and
Village Industries (KVI) and (b) making
KVIC a more professional and effective
body for implementation of the existing KVI
programmes/schemes and/or launching
new programmes/schemes with a view to
enhancing employment and income
generation in the rural areas and expen-
ding the markets for (including export of)
Khadi and Village Industry products; and
! to recommend any other measure(s)
considered necessary by the Committee
to revamp the KVIC and to launch new,
appropriate programmes/schemes.
2.4 The Expert Committee is expected to give
its recommendation shortly, based on which the
Government will initiate necessary action on
various issues relating to the khadi and village
industries sector.
3.0 KHADI AND VILLAGEINDUSTRIES COMMISSION
The Khadi & Village Industries
Commission (KVIC), established under the
Khadi and Village Industries Commission Act,
1956 (61 of 1956), is a statutory organization
engaged in promoting and developing khadi and
village industries for providing employment
opportunities in the rural areas, thereby
strengthening the rural economy. The KVIC has
been identified as one of the major orga-
nizations in the decentralized sector for gene-
rating sustainable rural non-farm employment
opportunities at low per capita investment.
3.1 The functions of the KVIC are generally
to plan, promote, organize and assist in
implementation of programmes/projects/
schemes for generation of employment through
the development of khadi and village industries.
To achieve this, it undertakes (a) training of
persons employed or desirous of seeking
employment in khadi and village industries,
4
(b) building reserves of raw materials and
implements and supplying them at such rates
as may be decided, (c) research and develop-
ment (R&D) in khadi and village industries
sector, (d) promotion of sale and marketing of
khadi and village industries products, (e)
promotion and encouragement of cooperative
efforts among the persons engaged in khadi
and village industries, etc.
3.2 The Government of India, both under Plan
and Non-Plan heads, provides funds for the
activities of the KVIC. These funds are provided
by way of grants and loans. The KVIC, in turn,
re-allocates them to the implementing agencies,
namely, the State KVI Boards, institutions
registered under the Societies Registration Act,
1860 and cooperative societies registered
under the Cooperative Societies Acts of the
State Governments and also individual
entrepreneurs. The Commission’s admini-
strative expenditure, including pension
payment, is also met out of Government
budgetary support.
4.0 COIR BOARD
The Coir Board is a statutory body esta-
blished under the Coir Industry Act, 1953 for
promoting the overall development of the coir
industry and upliftment of the living conditions
of the workers engaged in this traditional
industry.
4.1 The Coir Board consists of a full-time
Chairman and 40 part-time members, as
provided in section 4 of the Coir Industry Act,
1953. All sections interested in the welfare of
the coir industry are represented on the Coir
Board.
4.2 The functions of the Coir Board for the
development of coir industries include
undertaking scientific, technological and
economic research and development activities;
collection of statistics relating to exports and
internal consumption of coir and coir products;
development of new products and designs;
publicity for promotion of exports and internal
sales; marketing of coir and coir products in
India and abroad; preventing unfair competition
among producers and exporters; assisting in
the establishment of units for the manufacture
of products; promoting co-operative orga-
nisations among producers of husks, coir fibre,
coir yarn and manufacturers of coir products;
ensuring remunerative returns to producers and
manufacturers, etc.
4.3 For implementing the schemes/
programmes, the Government provides
necessary funds to the Coir Board under Plan
and non-Plan head.
5.0 PRIME MINISTER’S ROZGARYOJANA (PMRY)
The Prime Minister’s Rozgar Yojana
(PMRY) was launched on 02 October 1993 to
assist educated unemployed youth in setting
up self-employment ventures. Initially, the
PMRY was implemented only in the urban areas
of the country. Since 1994-95, it has been
implemented in both urban and rural areas. The
5
Yojana has been continued in the 10th Five Year
Plan with a Plan target of 11 lakh units,
generating 16.5 lakh employment opportunities.
The target for 2004-05 has been enhanced from
2.20 lakh to 2.50 lakh units, generating 3.75
lakh self-employment opportunities.
5.1 Under the PMRY, educated unemployed
youth in the age group of 18-35 years (upper
age limit relaxed up to 45 years for Women,
SC/ST, Ex-servicemen and Physically
Challenged) who have passed the 8th standard
examination and whose family income is less
than Rs. 40,000 per annum, are eligible to get
institutional credit and capital subsidy for all
economically viable activities.
5.2 Under the PMRY, preference is to be
given to the weaker sections, including women.
The Yojana envisages 22.5 per cent reservation
for SC/STs and 27 per cent for other Backward
Classes (OBCs). In case SC/ST/OBC candi-
dates are not available, State/UT Governments
may consider other categories of candidates
under the PMRY.
5.3 Projects costing up to Rs.1 lakh for
business activities and up to Rs.2 lakh for other
activities are covered under the Yojana. Eligible
persons can join together in a partnership to get
assistance for projects costing up to Rs.10 lakh.
5.4 Subsidy is provided @ 15 per cent of the
project cost subject to a ceiling of Rs. 7,500/-
per beneficiary. In the North Eastern (NE)
States, Uttaranchal, Himachal Pradesh and
Jammu & Kashmir, subsidy is provided @ 15
per cent of the project cost, subject to a ceiling
of Rs. 15,000/- per beneficiary. The entrepre-
neur has to contribute an amount ranging from
5 per cent to 16.25 per cent of the project cost,
so as to make the total of the subsidy and the
entrepreneur’s contribution (margin money)
equal to 20 per cent of the project cost. The
remaining 80 per cent is given as loan by the
banks.
5.5 Each entrepreneur who is sanctioned
loan under the PMRY is provided training by
the State Governments/Banks. The Scheme is
implemented through the District Industries
Centres (DICs)/Directorates of Industries of
State Governments, credit being provided by
banks.
5.6 Under the PMRY, apart from providing
capital subsidy to entrepreneurs, the Central
Government provides funds to the States/Union
Territories for entrepreneurial development,
contingencies, etc.
KVIC participated in India International Trade Fair.Hon’ble Minister of SSI & ARI Shri Mahabir Prasad
garlanding the portrait of Mahatma Gandhi.Also seen in the picture are Shri Anupam Dasgupta,
Secretary, SSI & ARI (on the left) andSmt. Maya S. Sinha, Commissioner, KVI.
6
Chapter II
KHADI AND VILLAGE INDUSTRIESCOMMISSION (KVIC)
1.0 INTRODUCTION
The Khadi & Village Industries
Commission (KVIC) was established under the
Khadi and Village Industries Commission Act,
1956 (61 of 1956), is a statutory organization
engaged in promoting and developing khadi
and village industries for providing employment
opportunities in the rural areas, thereby
strengthening the rural economy.
1.1 It took over the activities from the
erstwhile All India Khadi and Village Industries
Board on 1st April, 1957.
1.2 The KVIC has been identified as one of
the major organizations in decentralized sector
for generating non-farm employment
opportunities in the rural areas at low per capita
investment.
2.0 MAIN OBJECTIVES
! The social objective of providing
employment in rural areas;
! The economic objective of producing
saleable articles; and
! The wider objective of creating self-
reliance amongst the people and
building up a strong rural community
spirit.
3.0 FUNCTIONS
The functions of KVIC as prescribed
under the KVIC Act, 1956 (No. 61 of 1956) and
Rules made thereunder are as follows:
! to plan and organise training of persons
employed or desirous of seeking
employment in khadi and village
industries;
! to build up reserves of raw materials and
implements and supply them to persons
engaged or likely to be engaged in
production of handspun yarn or khadi or
village industries at such rates as the
Commission may decide;
! to encourage and assist in the creation
of common service facilities for the
processing of raw materials or semi-
finished goods and for otherwise
facilitating production and marketing of
khadi or products of village industries;
7
! to promote the sale of marketing of khadi
or products of village industries or
handicrafts and for this purpose forge
links with established marketing agencies
wherever necessary and feasible;
! to encourage and promote research in the
technology used in khadi and village
industries, including the use of non-
conventional energy and electric power
with a view to increasing productivity,
eliminating drudgery and otherwise
enhancing their competitive capacity and
to arrange for dissemination of salient
results obtained from such research;
! to undertake directly or through other
agencies studies of the problems of khadi
or village industries;
! to provide financial assistance to
institutions or persons engaged in the
development and operation of khadi or
village industries and guide them through
supply of designs, prototypes and other
technical information for the purpose of
producing goods and services for which
there is effective demand in the opinion
of the Commission;
! to undertake experiments or pilot projects
which in the opinion of the Commission
are necessary for the development of
khadi and village industries;
! to establish and maintain separate
organizations for the purpose of carrying
out any or all of the above matters; to
promote and encourage cooperative
efforts among the manufacturers of khadi
or persons engaged in village industries;
! to ensure genuineness and to set up
standards of quality and ensure that
products of khadi and village industries
do conform to the said standards, inclu-
ding issue of certificates or letters of reco-
gnition to the concerned persons; and
! to carry out any other matter incidental to
the above.
4.0 ORGANISATIONAL SET UP
The KVIC functions with its Central Office
at Mumbai and one Zonal Office at Guwahati
to facilitate speedy implementation of KVI
programmes. At the Central Office level,
different directorates have been constituted to
coordi-nate the functions like Training, Marke-
ting, Accounts, Khadi, Economic Research,
Rural Employment Generation Programme, etc.
4.1 The KVIC also undertakes training
activities through its 43 departmental and non-
departmental training centers. Marketing is
taken up through its 23 departmentally run
Khadi Gramodyog Bhawans/Vastragars and
7050 institutional sales outlets located in
different part of the country. As an endeavor to
provide quality raw materials to khadi insti-
tutions, six sliver plants have also been set up.
5.0 IMPLEMENTING AGENCIES
Khadi and Village Industries (KVI)
programmes are implemented through 5549
registered institutions, cooperative societies, 33
State/Union Territories (UTs) Khadi and Village
Industries Boards (KVIBs) and 27 public sector
8
banks, their regional rural banks and few
selected cooperative banks.
5.1 The Khadi programme is implemented
only through institutions that are registered
either with KVIC or KVIBs.
5.2 In the case of village industries, apart from
directly registered institutions/cooperative
societies, the programme is also being
implemented through individual entrepreneurs
by availing credit from banking sector.
6.0 GROUP OF INDUSTRIES
While the khadi programme comprises
hand spun and hand woven cotton, woollen,
muslin and silk varieties, the village industries
programmes have been classified into seven
broad groups. These are:
! Mineral Based Industry;
! Forest Based Industry;
! Agro and Rural Industry;
! Polymer and Chemical Based Industry;
! Rural Engineering and Bio Technology;
(vi) Hand Made Paper & Fibre Industry;
(vii) Service Industry.
6.1 Negative List: Industry connected with
meat (slaughter) i.e. processing canning and/
or serving items made of it, production/
manufacturing or sale of intoxicant items like
Beedi/Pan/Cigar/Cigarette etc., any Hotel or
Dhaba or sales outlet serving liquor,
preparation/producing tobacco as raw
materials, tapping of toddy for sale,
manufacturing of polythene carry bags of less
than 20 microns thickness and manufacturing
of carry bags or containers made of recycled
plastics for storing, carrying, dispensing or
packaging of food-stuff etc. are not assisted
under KVI programme as these are against the
ideology and ethos of Mahatma Gandhi.
7.0 BUDGETARY SUPPORT TOKVIC
The Government of India, both under Plan
and Non-Plan heads, provides funds for the
activities of the KVIC.
7.1 These funds are provided primarily by
way of grants and loans and in turn KVIC re-
allocates them to implementing agencies,
namely the State KVIBs, institutions registered
under the Societies Registration Act, 1860 and
cooperative societies registered under the
Cooperative Acts of the State Governments and
also the individual entrepreneurs. The
Commission’s administrative expenditure
including pension payment, is also being met
out of Government budgetary support.
9
7.2 The details of funds provided from
Budgetary Source (both under Plan and Non-
plan) during the last five years are as above.
8.0 PHYSICAL PERFORMANCEOF KVI SECTOR
The KVI sector recorded an improved
performance during 2003-04 in comparison with
that in the previous year.
8.1 The total KVI production (current prices,
as estimated by KVIC) stood at Rs. 9681.77
crore in 2003-2004 as against Rs. 8569.37 crore
in 2002-2003, reflecting an increase of 12.98
per cent. Similarly, sales of KVI products
increased to Rs. 11575.21 crore as compared
to Rs. 10193.34 crore, registering a growth of
13.56 per cent during 2003-04.
8.2 The total employment in the KVI sector is
estimated to have increased to 71.19 lakh in
2003-2004 as against the previous year’s level
of 66.45 lakh, registering a growth of 7.13 per
cent.
8.3 The total KVI production during 2004-
05 (up to January 2005) is estimated at Rs.
8461.49 crore as compared with Rs. 8068.15
crore in 2003-2004 (up to January 2004),
registering a growth of 4.65 per cent. Sales
increased to Rs. 10,982.05 crore in 2004-05
(up to January 2005) as compared with
Rs. 9646.00 crore during the corresponding
period of 2003-04, reflecting a growth of 13.8
per cent.
8.4 Total employment in KVI sector is
estimated to have increased to 74.01 lakh in
2004-2005 (up to January 2005) as compared
with 69.11 lakh persons during the
corresponding period of 2003-04, registering a
growth of 7.1 per cent.
8.5 Noticeable achievement has also been
made in sanctioning projects to weaker sections
of the society like SC, ST and women. While
the share of projects sanctioned to SC and ST
together stood at 13.14 percent of total projects
sanctioned during 2004-2005 as on 31 January
2005, the share of women is high at 24.78 per
(Rs. crore)
YEAR Budget Allocation Fund Released
Plan Non- Plan Plan Non- Plan
2000-2001 320.00 77.97 261.48 77.96
2001-2002 354.00 113.58 182.18 79.42
2002-2003 394.67 84.87 340.55 83.36
2003-2004 444.75 83.75 423.60 63.70
2004-2005 462.00 84.91 389.77 55.64
* Released as on 23.2.2005
Performance of KVI sector
10
cent. The coverage of SC, ST under overall
KVI employment has been estimated at 35 per
cent during the year under report. This large
coverage of weaker sections underlines the
importance of KVI programme as a source of
livelihood to the rural downtrodden.
8.6 There is a target of setting up of 28873
projects under REGP which will generate 5.51
lakh jobs during the year 2005-06.
9.0 MAJOR SCHEMES BEINGIMPLEMENTED BY KVIC
9.1 The Rural Employment Generation
Programme (REGP), is the flagship programme
being implemented by the KVIC to generate
more employment opportunities, thereby
reducing the migration from the rural to urban
areas. Under REGP capital subsidy in the form
of margin money is provided for setting up labour-
intensive projects in rural areas as well as in small
towns with population upto 20,000. Details of the
REGP are given in Chapter III.
9.2 Interest Subsidy Eligibility Certifi-
cation (ISEC) Scheme: The Interest Subsidy
Eligibility Certificate (ISEC) Scheme is the major
source of funding for khadi programme. It was
introduced in May 1977 to mobilize funds from
banking institutions to fill the gap in the actual
fund requirement and its availability from
budgetary sources.
9.2.1 Under the ISEC Scheme, credit at the
concessional rate of interest of 4 per cent p.a.
for capital expenditure as well as working capital
is given as per the requirement of the
institutions. The difference between the Actual
Lending Rate and 4 per cent is paid by the
Central Government through KVIC to the
lending bank and funds for this purpose are
provided under the khadi grant head.
9.2.2 Institutions registered with the KVIC/State
Khadi and Village Industries Boards (KVIBs)
can avail of financing under the ISEC scheme.
Initially, the entire KVI sector was covered, but
with the introduction of REGP for village
industries (VI), the ISEC scheme now supports
only the khadi and the polyvastra sector.
However, all V.I. units existing on 31.03.95,
have been allowed to avail of this facility for the
amount of bank finance availed as on that date
or actuals, whichever is less and funds for this
purpose are provides under the VI grant head.
9.2.3 The Institutions were able to improve their
credit situation during the year under report.
Interest Subsidy Eligibility Certificates worth Rs.
323 crore have been issued up to December
2004 to meet part of their working capital
requirement during 2004-05.
9.3 Rebate Scheme: The Government has
been announcing Rebate Policy for the last
many years so as to make the price of Khadi
competitive with other textiles. Normal rebate
all over the year and an additional special rebate
for 108 days is given to the customers. For this
purpose, the institutions are supported by KVIC
from funds available through budget of the
Ministry of ARI under Khadi Grant head. Rebate
policy is announced on a year-to-year adhoc
11
basis. The rate of normal rebate is @ 10 per
cent throughout the year and additional special
rebate is @ another 10 per cent for 108 days.
9.3.1 The rebate is allowed only on the sales
made by institutions/centres run by the Khadi
and Village Industries Commission, the Khadi
and Village Industries Boards and also at the
sales centers run by the registered institutions
who are engaged in the production of khadi and
polyvastra.
9.3.2 Under Rebate Scheme, the KVIC during
the year 2002-03 and 2003-04 released Rs.
118.84 crore and Rs. 81.99 crore respectively.
In the year 2004-05, Rs. 59.18 crore has
already been released towards rebate till
January 2005.
9.4 Product Development, Design Inter-
vention and Packaging (PRODIP) : The
Product Development, Design Intervention and
Packaging (PRODIP) scheme was launched
in November 2002 with a view to improve the
quality of khadi products and also to diversify
into new products, capacity building
programmes were organized under PRODIP
scheme such as:
! Training for production of knitwear orga-
nized at Khadi Gramodyog Vidyalaya,
Tamil Nadu, Sarvodaya Sangh, Tirupur.
! Training for Readymade Garment manu-
facturing at NID, Ahmedabad premises.
! Training for Readymade Garments
manufacturing, conducted at Multi
Disciplinary Centre, Patna, a depart-
mental unit of the Commission.
! Training for manufacturing of Readymade
Garments which includes design
development, pattern making, stitching
etc. were organized at Kshetriya Shri
Gandhi Ashram Varanasi and Meerut and
Khadi Gramodyog Vidyalaya, Tirupur.
A display of Khadi Dresses by Designer (PRODIP)
9.4.1 The scheme has gained acceptance as
would be evident from the progress achieved
so far. During 2003-04, 121 projects were
sanctioned under PRODIP. During 2004-05,
a target of 202 projects has been set under
PRODIP against which 40 projects have also
been sanctioned under KVI Sector t i l l
January 2005.
9.5 Rural Industries Service Centers
(RISC): With a view to helping the artisans and
entrepreneurs who are working in clusters and
do not have adequate facilities for complete
processing, packaging, marketing, quality
control, raw materials, training, etc., the KVIC
is implementing a scheme known as Rural
12
Industries Service Centers (RISC) in the current
year 2004-05 to provide infrastructural support
and necessary services to the local units to
upgrade their production capacity, skill
upgradation and market promotion.
9.5.1 RISC may inter alia
! Provide testing facilities by establishing
laboratory to ensure quality of the
products.
! Provide improved machinery/equipment
to be utilised as common utility facilities
by the nearby units /artisans to enhance
production capacity or value addition of
the product
! Provide attractive and appropriate
packaging facilities and machineries to
the local units/artisans for better
marketing of their products.
! Provide training facilities to upgrade
artisan’s skill in order to increase their
earnings.
! Provide new design or new product,
diversified product in consultation with
experts /agencies for a value addition of
rural manufacturing units.
9.5.2 This scheme is to be implemented
through KVIC/KVIBs, National level/ State level
Khadi and VI Federations, Khadi and VI
Institutions affiliated to KVIC and KVIBs and
NGOs who have already worked in the
implementation of programmes relating to
development of rural artisans in activities
excluding the negative list of KVIC.
9.5.3 Under this scheme, financial assistance
for establishing the projects up to Rs.5 lakh is
provided to KVI units.
9.5.4 Each RISC programme up to Rs.5 lakh
will provide benefits to 25 Individuals.
9.5.5 Under the RISC programme, 85 projects
have been sanctioned for which Rs. 148.85 lakh
have been released by the KVIC to its imple-
menting agencies by the end of January 2005.
9.6 Janashree Bima Yojana : To provide
insurance cover to Khadi artisans, a scheme of
group insurance in the name of Janashree Bima
Yojana (JBY) was launched w.e.f. 15 August
2003. Under this scheme, about 3.90 lakh
artisans are to be covered during 10th Plan
period.
9.6.1 This scheme has been formulated by Life
Insurance Corporation of India (LIC) with annual
premium of Rs. 200/- per beneficiary would be
shared as per the following details:
“Rs. 100/- by Central Government Security
Fund, Rs. 50/- by Khadi Institution and
Rs. 25/- each by khadi artisan and KVIC/GOI.”
The compensation will be as under:-
Natural death : Rs. 20,000/-
Accidental death : Rs. 50,000/-
Full permanent disability : Rs. 50,000/-
due to accident
Part permanent disability : Rs. 25,000/-
due to accident
13
9.6.2 Under this scheme, 2.03 lakh artisans
have already been covered by 31 January
2005. This scheme not only insures the life of
artisans but also disability of a permanent
nature.
9.6.3 As an add on benefit, school going
children of insured artisans between class Nine
to Twelve are also eligible to get a scholarship
of Rs. 100/- per month up to two children.
10.0 OTHER INITIATIVES
10.1 Quality Control In Khadi : In order to
increase the appeal of Khadi while maintaining
its handcrafted quality, KVIC forged tie-up
arrangements with the National Institute of
Design (NID), Ahmedabad; Dastakar, Andhra
Pradesh; IIT, Delhi; and Textiles Committee,
Mumbai. The IIT, Delhi developed stiff and soft
processing techniques as distinct characte-
ristics for Khadi. The process was implemented
as a pilot project at Kshetriya Shree Gandhi
Ashram, Barabanki in U.P. Building on the
success of the project, replication of such
facilities as common facility centers in other
parts of the country is also being done.
10.1.1 Under a Memorandum of Understanding
(MoU) signed with the Textile Committee, a
statutory body under Ministry of Textiles,
facilities of their 16 laboratories in the country
are available for testing of Khadi at concessional
rates. Under the arrangement, the quality of
Khadi would receive a fillip thus further
increasing its marketability.
10.2 Marketing : In the wake of globalization
and liberlisation of the economy, it has become
imperative to move with the demands of the
market in the fast changing consumer pre-
ferences. In this backdrop it was essential for
KVIC to redefine and its redesign its strategy
for its products to remain acceptable to the
surging market demand.
10.2.1 Major strategic changes have been
initiated during the year focusing on market
oriented approach instead of mere sales
promotions. During the year under report
various proactive moves further to fillip to theSmt. Gauri Kumar, Managing Director, NIFT addresses at
Designer’s Workshop at New Delhi
Shri Mahabir Prasad, Minister of SSI & ARI is keenlyobserving the texture of Khadi at Khadi Bharat pavilion
14
marketing of KVI products. The year witnessed
added attention to brand promotion, better
design input and modernization of sales outlets
to suit the customer’s taste and convenience.
10.2.2 Brand Promotion : Among various
initiatives launched during the year, the vigorous
efforts have been made in brand promotion.
Since long KVI products lacked umbrella Brand
coverage. The breakthrough made in earlier
years by launching “Sarvodaya” brand was
sustained by actively propagating the same
during the year under report. Sarvodaya Brand
covered a range of products like pickles, toilet
soap, agarbatti, honey, etc. and primarily aimed
at the domestic consumer market.
As a furtherance towards the concept of
brand promotion, efforts were also made to
market products like essential oils, high fashion
design garments, herbal products, etc., through
the exclusive “Khadi” brand.
10.2.3 Sales outlets: All the 17 Departmental
Bhavans and 2 Vastragars together reported
better performance during the year. Sales in-
creased to Rs. 10,982.05 crore in 2004-05 (up
to January 2005) as compared to Rs. 9646.00
crore during the corresponding period of 2003-
04, reflecting a growth of 13.8 per cent.
Keen attention was also paid to the
customers’ need and convenience. The Khadi
Khadi Fashion Show
15
in different parts of the country. Exhibitions
considered as a cost effective publicity and
market promotion instrument. During the year
under report special efforts were made to
oragnise such exhibitions in different places
and 129 exhibitions have already been
organized in various parts of the country in
2004-05 (up to January 2005).
10.2.5 Renovation and Modernisation: Most
of the Khadi Gramodyog Bhavans were
designed and setup decades ago. Efforts have
been made to modernise such outlets and
improve the outlook so as to attract the
customers. During 2003-04, the Khadi
Gramodyog Bhavan at Connaught Place, New
Delhi, a departmental sales outlet, was
renovated. Renovation of more Khadi
Gramodyog Bhavan/Bhandars throughout the
country would be taken up in a phased manner.
Under the UNDP-KVIC project, com-
puterization of inventory management and
financial accounting is one of the important
elements. In this regard, 10 major sales
A view of Khadi Gramodyog Bhavan, New Delhi
Gramodyog Bhavans located at Delhi, Kolkata
and other important locations worked without
closing for lunch. An Incentive Scheme, linked
to sales performance, have also been
introduced for the staff of departmental sales
outlets in order to encourage and motivate them
for better result.
During the year, endeavour has been
made to bring uniformity in the signage of Khadi
Gramodyog Sales outlets. There were large
number of Khadi Gramodyog Bhavans spread
over different parts of the country, without
uniformity in their outlook. It was felt necessary
to create a uniform signage, which could be
used by various Bhavans to impress upon the
customers. In this regard, a Khadi signage was
developed by involving National Institute of
Design(NID), Ahmedabad and efforts were also
made to register the same.
10.2.4 Exhibitions: Apart from promoting
sales through a network of Khadi Gramodyog
Bhavans, effort has also been made to
organize a number of exhibitions, conducted
Live demonstration of Pottery making in the zonal level Khadi& V.I. exhibition at Guwahati
16
outlets identified for upgradation and compu-
terization, and completed during the year
2004-05.
10.2.6 Marketing Federation: Under the
existing market scenario, KVI products were
marketed through outlets run by a large number
of NGOs, Marketing Federations of different
industries, etc. Such situation to a certain extent
contributed to duplication of infrastructure
facilities and efforts, in addition to operational
cost.
Accordingly, to give boost to marketing
of KVI products, it was decided to form a
National Level organization in the name of
Confederation for Promotion of Khadi &
Village Industries (CPKVI). This marketing
federation has also been registered under
Societies Registration Act, 1860. The main
objective of the CPKVI is:
! to procure and promote marketing of KVI
products produced by its members or
those of others from the decentralized
sector through domestic and export
channels;
! to procure bulk orders from government
departments, public sector units,
Corporate Houses, hotels, hospital and
other institutional markets and private
enterprises;
! to carry out and provides access for
market surveys, R&D, product
development, design interventions an
such related activity to strengthen the
marketability of the products;
! to conduct marketing and advertisement
campaign regularly, to bring out product
catalogs, literatures, booklets to create
awareness among public and
consumers;
! to provide or create access to common
facility services like warehousing, raw
material bank processing facilities,
databank, e-commerce, packaging
quality control laboratory to ensure better
marketability of products;
With the full scale functioning of CPKVI,
it is expected that the gap in having
professionally competent experts from the
marketing field would be filled and marketing
of KVI products would reach a new high.
10.3 Government Supply : The KVIC has
been executing supply of its products under
Rate Contract of Director General of
Supplies and Disposal (DGS &D) to various
Govt. Departments/Agencies.
Shri I. Jawahar, Director, MPPDC, KVIC receiving the“Gold Award” under PSU participation category on behalf
of KVI from Shri B. L. Joshi, Lt. Governor, Delhi
17
10.3.1 The Ministry of Railway has issued a
circular to all zonal railways to procure bed
sheets and pillow covers from KVIC for
providing in the first class A.C coaches of all
trains including Rajdhani express trains.
10.3.2 Based on DGS&D rate contract 24 items
of khadi are being supplied to Government
Agencies. The supplies worth 14.73 crore (up
to 15 January 2005) has been made during the
year 2004-05.
10.3.3 During 2004-05 (up to November 2004),
KVIC has received an order for 9724 khadi/
polyvastra bed sheets. 5000 bed sheets have
already been supplied and remaining supplies
are underway. Further orders for 6400 bed
sheets and 2500 pillow covers have also been
received from Railway in January 2005.
10.3.4 The sales to various Government
Departments under Rate contract is to the tune
of Rs. 13.68 crore during 2004-05 (up to
January 2005)
11.0 RESEARCH AND DEVELOP-MENT
The KVIC undertakes research and
development activities through in-house
research and also by sponsoring projects to
other R&D orgainsations. The main objectives
of S&T programme are:
! Increase in productivity
! Increase in wages
! Improvement in quality
! Efficient use of local skills and local raw
materials
! Reduction of human drudgery
11.1 Existing Infrastructure: Thefollowing institutions exist in KVISector
Jamnalal Bajaj Central Research Institute
(JBCRI) now renamed as Mahatma Gandhi
Institute for Rural Industrialization (MGIRI),
Wardha, Central Bee Research and Training
Institute (CBRTI), Pune, Dr. Ambekar Institute
of Rural Technology and Management
(AIRTM), Nashik, Kumarappa National
Handmade Paper Insitute (KNHPI), sanganer,
Jaipur, Central Village Pottery Institute (CVPI),
Khanapur, Karnataka, Khadi Gramodyog
Prayog Samiti (KGPS), Ahmedabad.
11.2 Revamping of JBCRI, Wardha: An
agreement was signed between KVIC and IIT
Delhi, to revamp JBCRI, Wardha [now known
as Mahatma Gandhi Institute for Rural
Industrialization (MGIRI)] and convert it into an
autonomous body under the Ministry of ARI.
The vision envisaged is “To upgrade and
accelerate the process of rural industrialization
of our country so that we can move towards
the Gandhian vision of sustainable village
economy, and the products of the KVI sector
can have its pride of place amongst the large
industrial sector and become popular in the
country and abroad”. The revamping of the
JBCRI is being carried out by IIT, Delhi.
18
11.3 MoU with Technical Interface Insti-
tutes: The KVIC has built up a large net work
of rural cottage industrial units producing a wide
range of goods and articles catering the rural
and partly urban markets. Some of them have
achieved high standards for export as well but
majority of them lack support in maintaining
standard quality for want of technical Back-up
to upgrade the quality of their products. Keeping
this in view, it has been decided to set up
Technical Back Up Units which will provide S&T
inputs to the entrepreneurs engaged in KVI
activities.
11.3.1 The basic objectives of these units
would be to strengthen rural industrialization
Shri Mahabir Prasad, Minister of SSI & ARI, inaugurating the Divisional Office of KVIC at Gorakhpur,Smt. Maya S. Sinha, Commissioner for KVI also seen in the picture
through timely, continuous and appropriate
S & T inputs, R & D support, innovative ideas
and technologies for value addition as well
as for strengthening academic-industrial
linkages. It has also been decided to be set
up these units in the major Engineering
Colleges, IITs, Technical Universities, etc.
Consequently, to bring out better designed
agro products which can satisfy consumers
choice and sustain in market competition,
arrangements have been made with National
Institute of Design (NID), National Institute of
Fashion Technology (NIFT). A franchise
scheme for tapping the private showrooms for
marketing of branded KVI products was
launched in Delhi.
19
20
21
Chapter III
RURAL EMPLOYMENT GENERATIONPROGRAMME (REGP)
1.0 INTRODUCTION
On the basis of the recommendation of
the High Power Committee, headed by the then
Prime Minster of India, the KVIC launched the
Rural Employment Generation Programme
(REGP) with effect from 01 April 1995.
1.1 The term rural area has been defined as
under:
(i) Any area classified as a village as per the
revenue records of the State, irrespective
of population.
(ii) Any area classified as a town, provided
its population does not exceed 20,000 as
per 1991 census.
1.2 Similarly, the term “village industries” has
been defined as “any industry located in a rural
area which produces any goods or renders any
service with or without the use of power and in
which the fixed capital investment per head of
artisan or worker does not exceed Rs. 50,000
or such other sum as may be specified by
Central Government from time to time”.
1.3 All activities which do not appear in the
negative list circulated by KVIC are eligible for
financing under the scheme.
2.0 MAIN OBJECTIVES
! to generate employment in rural areas.
! to develop entrepreneurial skills and
aptitude among rural unemployed youth.
! to achieve the goal of rural industria-
lization.
! to facilitate participation of banks in the
village industries sector so as to ensure
higher credit flow to these industries.
3.0 SALIENT FEATURES OFREGP
! The programme is applicable to all village
industry projects set up in rural areas.
! The eligible beneficiaries under the
programme are (i) individuals (rural
artisans/ entrepreneurs), ii) institutions,
cooperative societies, trusts & Self Help
Groups (SHGs) for projects costing upto
Rs. 25 lakh.
! Partnership firms private/public limited
companies, joint ventures, joint borrow-
ers, co-obligators of HUF are not eligible.
! The permissible margin money assistance
is as detailed in the table below:
22
REGP - Permissible Margin Money Assistance
S. No. Category of beneficiary Project cost Margin money assistance
1. General Up to Rs. 10 lakh 25 per cent of project cost
Above Rs. 10 lakh and Rs. 2.5 lakh plus 10 per centup to Rs. 25 lakh of balance project cost.
2. SC/ST/OBC/Women/PH/ Up to Rs. 10 lakh 30 per cent of project costEx-servicemen/NE Region/Hill areas Above Rs. 10 lakh and Rs. 3 lakh plus 10 per cent of
up to Rs. 25 lakh balance project cost.
Note: SC/ST – Scheduled Caste/Scheduled Tribe; PH – Physically Handicapped: NE – North Eastern
! The borrower is required to invest his own
contribution of 10 per cent of the project
cost. In case of SC/ST and other weaker
section borrowers, the beneficiary’s con-
tribution is 5 per cent of the project cost.
! Banks will sanction loan of 90 per cent of
the project cost in case of general category
borrowers and 95 per cent of the project
cost to the weaker section beneficiaries/
institutions. After the sanction of the credit
facility by the Bank branch, eligible amount
of margin money will be kept in term
deposit of two years in the account of the
borrower at the leading bank branch, which
will be credited to the borrower’s loan
account after a period of two years from
the date of first disbursement of loan.
4.0 IMPLEMENTATION
KVIC is implementing REGP through:
! All Public Sector Banks,
! All Regional Rural Banks,
! Co-operative Banks approved by State/
U.T. Governments, KVIBs, Private
Commercial Banks approved by the State
KVIBs; and
! Other Financing Institutions of State &
Central Government as approved by
KVIC.
5.0 SPONSORSHIP
Sponsoring of project by any agency is
not mandatory. However, KVIC’s State/
Regional Offices and State KVI Boards/DIC
may sponsor the project if approached.
6.0 EDP TRAINING
Once the project is sanctioned by
financing branch of the Bank, before releasing
the second installment of loan, beneficiary is to
be imparted 3-day training arranged by the
State/Regional Director.
7.0 STATUS AND PROGRESS OFREGP
Since the commencement of REGP,
1,86,252 projects have been financed and 22.75
23
lakh job opportunities have been created up to
31.03.2004. Government initially set a target of
creating 20 lakh additional jobs during the 10th
Plan period with a Plan investment of Rs. 1177
crore. However, keeping in view REGP’s
potential, the target was revised in 2003-04 to
25 lakh jobs during the 10th Plan period.
7.1 During 2003-04, 4.71 lakh additional
employment opportunities have been generated
under this programme. The target for generating
additional employment opportunities for 2004-
05 and 2005-06 are 5.25 lakh and 5.51 lakh,
respectively.
7.2 During 2004-05 (up to 15 January
2005), 12978 projects have already been set
up, generating 2.57 lakh additional employ-
ment opportunities as against the target of
creation of 5.25 lakh job opportunities. It has
been reported that a number of projects are
at sanction stage and it is expected that the
target set under the programme would be
achieved. It may noted that during 2003-04,
2.38 lakh number of additional employment
opportunities were created during the last
quarter of the year.
7.3 State-wise Performance of REGP :State-wise performance in respect of project
sanctioned, margin money utilized and
employment generated during 2003-04 are
given at Table-I, Table-II and Table-III,
respectively.
A Ghani Oil Unit under REGP Programme
24
Year Target for Employment Number of Margin moneyemployment generated projects set up releasedgeneration during year (Rs. crore)
(lakh persons) (lakh persons)
2002-03 4.00 3.61 21024 193.71
2003-04 5.00 4.71 24747 264.38
2004-05 5.25 2.57 12978 148.80(up to 15 January 2005)
REGP - Achievements during 10th Plan period
Sr. No. Category No. Projects Percentage
1. Scheduled Castes 955 7.362. Scheduled Tribes 753 5.803. OBC 3078 23.714. Minority Community 1613 12.425. Ex-Servicemen /physically handicapped 259 2.006. General 6320 48.70
Total 12978Women 3303 25.45
Categorywise distribution of REGP projects: Number of projects sanctioned during 2004-05(up to 15 January 2005)
Sr. No. Category No. Projects Percentage
1. Up to Rs. 1 lakh 2852 21.98
2. Rs. 1 lakh to Rs. 5 lakh 5842 45.01
3. Rs. 5 lakh to Rs. 10 lakh 2792 21.51
4. Rs. 10 lakh to Rs. 25 lakh 1492 11.50
Total 12978
Cost-wise Range of projects set up under REGP during 2004-05 (up to 15 January 2005)
7.4 Backward and Forward Linkages: The
KVIC provided financial assistance to its State
Offices as well as the State Khadi and Village
Industries Boards for establishing backward and
forward linkages of the entrepreneurs/
institutions. Under this, an amount of Rs. 60.74
lakh have been released which has utilized for
organizing 33 workshops, 88 awareness camps
and 14 exhibitions. 2662 Entrepreneur
Development Programmes (EDPs) have also
been organized during the year 2004-05 (up to
January 2005).
25
are also allowed under rural transport,
keeping in view the special requirement
of these States.
! For providing information/guidance to the
new entrepreneurs, REGP helping
counters are opened in all the field
offices of the KVIC and the State KVI
Boards.
! 346 model branches of Public Sector
Banks are provided margin money in
advance on quarterly basis.
! Training to all KVIC/KVIB’s field offices
staff were provided to acquaint them with
the implementation of the programme.
Extensive publicity programme was made
through workshops, awareness camps,
exhibitions etc.
A REGP benefeciary making the rope by hand operating machine
8.0 INITIATIVES
For smooth implementation of the
programme, the Commission took the following
new initiatives during the year 2004-05:
! Decentralisation of the implementation of
the scheme by making payment of margin
money through State Offices and State
KVI Boards.
! Fixation of targets for projects and margin
money for all field offices based on rural
population of the State.
! Financing of units based on coir as raw
material is allowed.
! Financing of auto-rickshaws in Andaman
and Nicobar Islands, house boat, shikara
and tourist boat in Jammu and Kashmir
26
Table: IZone-wise, State-wise & Group-wise Performance of REGP-Project Setup 2003-2004
(Projects in Numbers)
Sr. States/Union Mineral Forest Agro & Polymer Handmade Rural Engi- Service TotalNo. Territories based based Food & Chemical Paper & neering & Bio Industry REGP
Industry Industry Processing based Fibre Technology ProjectsIndustry Industry Indsutry Industry
I North Zone1 Chandigarh 1 0 2 1 0 1 3 82 Delhi 0 0 2 0 1 0 4 73 Haryana 138 84 185 87 41 199 189 9234 Himachal Pradesh 47 38 87 19 4 86 133 4145 Jammu & Kashmir 34 17 41 16 60 349 258 7756 Punjab 138 95 169 69 39 181 191 8827 Rajasthan 451 286 487 153 75 560 484 2496
Total - I 809 520 973 345 220 1376 1262 5505II East Zone
1 Andman & Nicobar 4 11 15 5 2 10 11 582 Bihar 41 2 18 3 0 15 9 883 Jharkhand 102 8 43 12 0 54 104 3234 Orissa 167 113 197 97 46 215 196 10315 West Bengal 349 638 498 156 94 543 1070 3348
Total - II 663 772 771 273 142 837 1390 4848III North East Zone
1 Arunachal Pradesh 1 8 0 3 4 6 10 322 Assam 144 94 208 21 23 168 565 12233 Manipur 4 13 4 0 0 5 10 364 Meghalaya 30 16 71 6 3 37 47 2105 Mizoram 2 0 1 5 0 3 22 336 Nagaland 15 8 2 0 1 12 23 617 Tripura 36 8 46 4 27 40 83 2448 Sikkim 8 14 19 4 10 16 42 113
Total - III 240 161 351 43 68 287 802 1952IV South Zone
1 Andhra Pradesh 269 92 246 57 30 112 291 10972 Kanataka 246 54 466 80 84 140 352 14223 Kerala 391 161 415 112 97 328 542 20464 Lakshadweep 1 1 2 1 0 2 2 95 Pondicherry 6 0 11 4 0 4 22 476 Tamil Nadu 245 127 325 81 72 338 380 1568
Total - IV 1158 435 1465 335 283 924 1589 6189V West Zone
1 Dadra & Nagar Haveli 0 0 2 0 0 0 0 22 Daman & Diu 0 0 0 0 0 0 0 03 Goa 6 31 15 1 2 7 64 1264 Gujarat 43 37 79 21 4 48 58 2905 Maharashtra 143 99 154 46 26 158 231 857
Total - V 192 167 250 68 32 213 353 1275VI Central Zone
1 Chattishgarh 161 50 118 48 9 97 214 6972 Madhya Pradesh 180 111 172 60 46 252 220 10413 Uttaranchal 173 113 222 83 94 229 192 11064 Uttar Pradesh 321 81 802 147 46 398 339 2134
Total - VI 835 355 1314 338 195 976 965 4978Grand Total 3897 2410 5124 1402 940 4613 6361 24747
27
Table: IIZone-wise, State-wise & Group-wise Performance of REGP-
Margin Money Utilisition 2003-2004(Rupees in Lakhs)
Sr. States/Union Mineral Forest Agro & Polymer Handmade Rural Engi- Service TotalNo. Territories based based Food & Chemical Paper & neering & Bio Industry REGP
Industry Industry Processing based Fibre Technology ProjectsIndustry Industry Indsutry Industry
I North Zone1 Chandigarh 1.32 0.00 2.02 2.87 0.00 1.32 2.71 10.242 Delhi 0.00 0.00 5.19 0.00 0.90 0.00 6.22 12.313 Haryana 289.99 172.47 389.06 183.25 86.24 414.75 403.20 1938.964 Himachal Pradesh 78.16 66.55 167.25 34.42 7.21 166.62 236.90 757.115 Jammu & Kashmir 29.22 53.61 24.46 12.68 15.15 61.02 167.31 363.456 Punjab 146.08 75.53 170.02 103.47 30.95 179.92 113.06 819.037 Rajasthan 632.87 273.85 559.74 170.44 85.20 665.21 502.97 2890.28
Total - I 1177.64 642.01 1317.34 507.13 225.65 1488.84 1432.37 6791.38II East Zone
1 Andman & Nicobar 4.33 3.72 6.34 0.57 0.00 7.31 6.17 28.442 Bihar 105.19 3.61 32.81 4.23 0.00 24.21 15.98 186.033 Jharkhand 92.50 4.65 26.09 9.71 0.00 31.47 33.66 198.084 Orissa 127.80 85.40 149.87 72.92 35.96 162.74 149.42 784.115 West Bengal 161.40 290.69 231.61 163.43 41.68 250.33 454.37 1593.51
Total - II 491.22 388.07 446.72 250.86 77.64 476.06 659.06 2790.17III North East Zone
1 Arunachal Pradesh 2.75 9.80 0.00 7.76 7.98 10.64 13.84 52.772 Assam 94.71 62.40 137.54 13.90 15.22 112.13 370.93 806.833 Manipur 5.22 23.80 3.85 0.00 0.00 5.30 3.02 41.194 Meghalaya 35.58 9.01 45.23 1.91 3.00 21.14 5.92 121.795 Mizoram 3.70 0.00 1.85 9.26 0.00 5.55 40.74 61.106 Nagaland 28.52 16.95 3.74 0.00 1.97 22.62 43.40 117.207 Tripura 64.89 5.48 37.31 4.09 19.60 40.32 52.33 224.028 Sikkim 6.63 16.75 15.75 3.32 17.75 13.25 54.22 127.67
Total - III 242.00 14419 245.27 40.24 65.52 230.95 584.40 1552.57IV South Zone
1 Andhra Pradesh 424.44 116.90 390.80 70.28 48.81 162.61 461.56 1675.402 Kanataka 408.09 60.99 633.52 101.14 73.48 183.52 231.43 1692.173 Kerala 527.18 216.84 550.12 150.83 130.45 441.41 736.32 2753.154 Lakshadweep 1.13 0.74 1.48 0.74 0.00 1.85 1.48 7.425 Pondicherry 3.13 0.00 3.78 0.27 0.00 1.08 3.12 11.386 Tamil Nadu 224.10 109.98 267.31 78.41 70.01 314.85 297.51 1362.17
Total - IV 1588.07 505.45 1847.01 401.67 322.75 1105.32 1731.42 7501.69V West Zone
1 Dadra & Nagar Haveli 0.00 0.00 4.13 0.00 0.00 0.00 0.00 4.132 Daman & Diu 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.003 Goa 3.98 2.06 9.42 0.69 1.74 5.15 59.94 82.984 Gujarat 19.16 16.51 36.26 9.37 1.79 21.41 25.84 130.345 Maharashtra 136.51 102.92 174.85 50.31 20.63 170.69 217.34 873.25
Total - V 159.65 121.49 224.66 60.37 24.16 197.25 303.12 1090.70VI Central Zone
1 Chattishgarh 373.91 58.90 243.55 107.44 27.07 171.95 115.18 1098.002 Madhya Pradesh 226.71 134.28 219.92 80.14 59.05 368.67 266.30 1355.073 Uttaranchal 157.18 94.90 205.28 72.49 81.97 199.91 167.97 979.704 Uttar Pradesh 512.78 139.00 1233.85 239.85 75.41 662.89 551.40 3415.18
Total - VI 1270.58 427.08 1902.60 499.92 243.50 1403.42 1100.85 6847.95Grand Total 4929.16 2228.29 5984.00 1760.19 959.22 4901.84 5811.7626574.46
28
Table: IIIZone-wise, State-wise & Group-wise Performance of REGP-Employment 2003-2004
(Persons in Numbers)
Sr. States/Union Mineral Forest Agro & Polymer Handmade Rural Engi- Service TotalNo. Territories based based Food & Chemical Paper & neering & Bio Industry REGP
Industry Industry Processing based Fibre Technology ProjectsIndustry Industry Indsutry Industry
I North Zone1 Chandigarh 32 0 30 20 0 20 60 1622 Delhi 0 0 77 0 15 0 139 2313 Haryana 6971 2567 5790 1283 1418 6172 9000 332014 Himachal Pradesh 1879 990 2489 241 119 2479 5288 134855 Jammu & Kashmir 702 798 364 89 249 908 3735 68456 Punjab 3512 1124 2530 724 509 2677 2524 136007 Rajasthan 15213 4075 8329 1193 1401 9899 11227 51337
Total - I 28309 9554 19609 3550 3711 22155 31973 118861II East Zone
1 Andman & Nicobar 104 55 94 4 0 109 138 5042 Bihar 2529 54 488 30 0 360 357 38183 Jharkhand 2224 69 388 68 0 468 751 39684 Orissa 3072 1271 2230 510 591 2422 3335 134315 West Bengal 3880 4326 3447 1144 686 3725 10142 27350
Total - II 11809 5775 6647 1756 1277 7084 14723 49071III North East Zone
1 Arunachal Pradesh 66 146 0 54 131 158 309 8642 Assam 2277 929 2047 97 250 1669 8279 155483 Manipur 125 354 57 0 0 79 67 6824 Meghalaya 855 134 673 13 49 315 132 21715 Mizoram 89 0 28 68 0 83 909 11746 Nagaland 686 252 56 0 32 337 969 23327 Tripura 1560 82 555 29 322 600 1168 43168 Sikkim 159 172 243 23 136 197 1210 2140
Total - III 5817 2069 3659 281 920 3438 13043 29227IV South Zone
1 Andhra Pradesh 10203 1960 5815 492 803 2420 10303 319962 Kanataka 9810 908 9427 708 1209 2731 5167 299583 Kerala 12673 3227 8186 1056 2146 6569 16434 502914 Lakshadweep 24 11 22 5 0 28 34 1275 Pondicherry 75 0 56 2 0 16 70 2196 Tamil Nadu 5387 1637 3978 549 1151 4685 6641 24028
Total - IV 38175 7743 27484 2812 5309 16449 38647 136619V West Zone
1 Dadra & Nagar Haveli 0 0 61 0 0 0 0 612 Daman & Diu 0 0 0 0 0 0 0 03 Goa 96 31 140 5 29 77 1337 17154 Gujarat 461 246 540 66 29 319 575 22365 Maharashtra 3281 1532 2602 352 339 2540 4852 15498
Total - V 3838 1809 3343 423 397 2936 6764 19510VI Central Zone
1 Chattishgarh 8988 876 3624 752 445 2559 2571 198152 Madhya Pradesh 5450 1998 3273 561 971 5486 5944 236833 Uttaranchal 3778 1412 3055 507 1348 2975 3750 168254 Uttar Pradesh 12326 2068 18361 1679 1240 9864 12309 57847
Total - VI 30542 6354 28313 3499 4004 20884 24574 118170Grand Total 118490 33304 89055 12321 15618 72946 129724 471458
29
30
31
Chapter IV
COIR SECTOR / COIR BOARD
1.0 COIR INDUSTRY
India is the largest coir producer in the
world accounting for more than 80 per cent of
the total world production of coir fibre. The coir
sector in India is very diverse and involves
households, co-operatives, NGOs, manu-
facturers and exporter.
1.1 The coir industry employs more than 5.5
lakh persons of whom a majority are from rural
areas belonging to the economically weaker
sections of society. Nearly 80 per cent of the
coir workers in the fibre extraction and spinning
sectors are women.
1.2 The development of coir industry has all
along been in areas where there is
concentration of coconut cultivation and
availability of coconut husks. For historical
reasons the coir industry get started and
flourished in Kerala which has a long coast line,
lakes, lagoons and backwaters which provide
natural conditions required for retting. However,
with the expansion of coconut cultivation, coir
industry is coming up in the States of Tamil
Nadu, Karnataka, Andhra Pradesh, Orissa,
West Bengal, Assam, Tripura, Pondicherry and
the Union Territories of Lakshadweep and
Andaman & Nicobar Islands. Spinning is mainly
carried out on traditional ratts which require
walking, forward and backward. The production
and processing methods in coir industry still
continue to be mainly traditional.
2.0 THRUST AREAS FORDEVELOPMENT OF COIRINDUSTRY
! Modernisation of production
infrastructure by means of appropriate
Item 2002-03 2003-04 2004-05(estimated)
Coir fibre 3,53,700 3,64,000 3,85,000
Coir Yarn 2,26,800 2,32,500 2,48,000
Coir Products 75,750 77,900 88,000
Coir Rope 50,000 50,000 52,000
Curled Coir 28,000 29,500 38,000
Rubberised Coir 50,250 51,000 60,000
Production of Coir and Coir Products during the 10th Plan period (Quantity:MTs)
32
technology without displacement of
labour.
! Expansion of domestic market through
publicity and propaganda.
! Promotion of export of coir and new
products by undertaking market
promotion abroad.
! Promotion of research and development
activities like process improvement,
Product development and diversification
and elimination of drudgery and pollution
abatement.
! Development of manpower through
training.
! Extension of Research and Development
findings through field demonstration.
! Development of coir industry in all the coir
producing States through Action Plan, in
association with the State Governments.
3.0 COIR BOARD
The Coir Board is a statutory body
established the Coir Industry Act, 1953 for
promoting the overall development of the coir
industry and upliftment of the living conditions
of the workers engaged in this traditional
industry.
3.1 The Coir Board consists of a full-time
Chairman and 40 part-time members, as
provided in section 4 of the Coir Industry Act,
1953. All sections interested in the welfare of
the coir industry are represented on the Coir
Board.
3.2 The functions of the Coir Board for the
development of coir industries include
undertaking scientific, technological and
economic research and development activities;
collection of statistics relating to exports and
internal consumption of coir and coir products;
development of new products and designs;
publicity for promotion of exports and internal
sales; marketing of coir and coir products in
India and abroad; preventing unfair competition
among producers and exporters; assisting in
the establishment of units for the manufacture
of products; promoting co-operative
organisations among producers of husks, coir
fibre, coir yarn and manufacturers of coir
(Quantity : M. Tonnes)
Item 2002-03 2003-04 2004-05(estimated)
Coir Fibre 89,200 38,400 42,500
Coir Yarn 1,25,300 1,96,959 2,05,560
Coir Products 26,500 19,469 21,800
Coir Rope 49,700 49,692 51,580
Curled Coir 27,500 29,424 37,880
Rubberised Coir 49,700 50,538 59,490
Consumption of Coir and Coir Products during 10th Plan Period
33
products; ensuring remunerative returns to
producers and manufacturers, etc.
4.0 ACTIVITIES OF THE COIRBOARD
The activities being carried out by the Coir
Board for the overall development of coir sector
are as under:
4.1 Research & Development : Central Coir
Research Institute, Kalavoor, Alleppy, and
Central Institute of Coir Technology, Bangalore,
undertake research activities for the different
aspects of coir industry beginning from the
method of extraction of fibre to the processing
and manufacture of end products. Identification
of new user areas for potential utilisation of coir,
coir waste, coir pith and improvements in
processing for better quality are the areas of
special attention. Coir Testing Laboratories
have been set up at Pollachi and Bhubneswar
to cater to the testing requirements of the trade.
The activities under the R&D programmes of
the Coir Board during the year 2004-2005 are
as under:
4.1.1 Modernisation of Extraction and
Processing of Coir Fibre : (i) studies on lignin
degradation by microbial cultures produced
encouraging results; (ii) an experiment on
composting of coir pith using soya was carried
out. The initial results indicate that urea can be
successfully replaced by soya making
composting process fully environment friendly
and natural; (iii) experimental studies for
improving the quality of mechanically extracted
green husk fibre using biochemical means were
carried out in the laboratory; and (iv) testing of
N.P.K, etc., phytosanitary properties and
microbiological tests for determination of
Salmonela, E-coli were carried out as per
International Standards in the microbiology lab
as per the request of various entrepreneurs on
realisation of testing fee.
4.1.2 Development of Coir Machinery: (i) A
mild steel handloom ”Anugraha” for weaving
coir mattings and geotextiles has been
developed and fabricated by CCRI at a cost of
Rs.5000. In this loom, the frames are moved
up and down by a mechanism which is operated
by a wire-rope and cable. The effort needed to
operate this system is negligible. The loom can
thus be operated even by women workers who
are normally not engaged in the weaving
operation on conventional handloom due to
drudgery involved. The output of the loom is
10 metre per hour for geotextiles. Coir Board
has commercialised the technology; (ii) a fully
automatic spinning machine and slivering
machine has been developed in collaboration
with PSG College of Technology; and (iii) a
collaborative project with PSG College ofInauguration of Coir Board Stall in IITF, New Delhi
34
Technology has also been undertaken for
development of Platform mounted mobile
defibering machine.
4.1.3 Product Development and Diversi-
fication: (i) the development of blended yarn of
coir fibre and sisal fibre at 80:20 respectively
having runnage ranging from 1000-1400 mtrs./
kg has been continued and new innovative
products have been manufactured out of the
blended yarn as handicraft products, wall
hangings, venetian blinds etc. Printed designs
have also been developed on the fabric
manufactured with the blended yarn; (ii) in
collaboration with IIT, New Delhi, mats, matting,
handicrafts products in various designs have
been produced with the coir yarn dyed with the
natural dyes; (iii) a project for laying 4000 sq.
mtrs of geotextiles in Silchar, Assam and 2625
sq.mtrs in Kohima, Nagaland have been
implemented; and (iv) development of patterns
on jacquard loom, pile wire loom, semi
mechanised loom and handlooms have been
continued.
4.1.4 Testing and Service Facility : (i)
Technical staff have been deputed to the field
work at various places for popularisation of
research products such as PITHPLUS,
COIRRET, etc. and also for the utilisation of
Coir Bhoovastra for soil erosion control; (ii)
Pithplus demonstrations have been conducted
in 22 places in Kerala and a quantity of 35.16
tonnes coir pith has been converted into organic
manure; (iii) 86 new designs have been
produced out of which 40 designs published
upto 31st January, 2005; (iv) Conducted
determination of strength of H2O
2 in the effluents
of bleaching using percoiron. Cold and hot
bleaching with H2O
2 have also been conducted;
(v) Testing has been done on 16 sets of
rubberised coir and 102 samples of other coir
products. Technical advice on bulk dyeing and
sale of design cards have been extended and
an amount of Rs. 22,94,038/- towards service
charges for processing of 658.136 MTs of coir
yarn have been realised; (vi) With a view to
develop a technology for fabrication of doors
and door frames using coir fibre and also
appropriate resins an MoU has been signed with
RV-TIFAC Composite Design Centre,
Bangalore; and (vii) Another MoU has been
signed with PSG College of Technology,
Coimbatore for development of a technology
for the production of Particle Boards out of
tender coconut husks and development and
fabrication of platform mounted mobile
defibering machine.
4.1.5 Coir Research and Development: At the
Central Coir Research Institute (CCRI), Alleppey
in Kerala, research activities are being
undertaken to reduce the period of retting.
Coirret in the bacterial cocktail has been
developed at the CCRI for treating the coconut
husks and mechanically extracting coir fibre. Coir
ret reduces retting period of coconut husks to 3
months from the traditional period 9-12 months.
It converts mechanically extracted green husks
fibre into improved quality retted fibre in 72 hours.
It has the following advantages:
! Maximum exploitation of husk potential
! Reduction in cost of production
35
! Elimination of pollution in the Back Waters.
Accumulation of coir pith is a major
environmental problem for coir industry. It is
estimated that about two tonnes of coir pith is
accumulated while extracting one tonne of Coir
fibre. With a view to ensuring economic
utilisation of coir pith, the CCRI in collaboration
with the Tamil Nadu Agricultural University,
Coimbatore, has developed a technology for
converting coir pith into organic manure within
30 days. The process involves degradation of
lignin extent in coir pith by using suitable fungus.
This fungus is sold in the name of “Pith Plus”.
The Board has formulated a scheme for
modernisation of coir industry and to make it
pollution free under which it is proposed to
demonstrate the composting technology in
different locations. The Research Institutes of
the Coir Board have been constantly pursuing
efforts for developing an effective substitute to
wood and wood based compositions from Coir.
As a result of the persistent efforts, the Coir
Board has succeeded in developing a
technology for production of coir ply, which is
commercially viable.
4.2 Domestic Market Promotion :
Promotion of the sales of coir products in India
and elsewhere is one of the important functions
of the Coir Board. The Domestic Market
Promotion includes efforts for enhanced sale
of coir products through Board’s showrooms
and sales outlets, and also popularizing coir and
coir products by way of publicity through audio
and visual media, sales campaign, press
advertisement and through pamphlets,
hoardings etc. and by way of organizing
exhibitions in different parts of the country. The
Coir Board has participated in 50 exhibitions
during 2004-05 for popularization of coir and
coir products in the domestic market.
4.2.1 To promote the sale of coir and coir
products manufactured by the Co-operatives
and Public Sector Enterprises to ensure
payment of minimum wages and other
obligatory benefits to the coir workers and
thereby encouraging sustained production and
better employment opportunities, a Market
Development Assistance Scheme (MDA) was
launched in the year 2001-2002. During 2004-
2005, an amount of Rs. 99.0 lakh (provisional)
has been released under the Scheme.
4.2.2 Further, the Coir Board has 31
Showrooms and Sales Depots as marketing
outlets. The sales through the Board’s
Showrooms during the year (up to December
2004) has been of the order of Rs 541.75 lakh.
The total sales of coir and coir products through
Coir Board’s showrooms and sales depots
during 10th Plan period are as under:
(Rs. Lakh)
2002-03 2003-2004 2004-05
692.45 728.00 541.75
(as on 31.12.04)
4.3 Export Market Promotion : India
retained the position as the largest producer
and supplier of coir and coir products to the
world market. The share of India in the global
production of coir is 80 per cent (in terms of
36
Year Amount Number of(Rs. lakh) Units
2002-2003 28.71 25
2003-2004 73.16 58
2004-2005 36.22 29(as on 31.1.2005)
fibre). Although Srilanka has a monopoly in the
supply of coir fibre to the world market, India
continues to be the major supplier of coir yarn
and coir products with a share of 70 per cent
and 75 per cent respectively in the total global
trade in those items.
4.3.1 During the year 2004-2005, 95412 MTs
(April 2004 to January, 2005) of coir and coir
products valued at Rs. 387.31 crore have been
exported from India registering a growth of
17.07 per cent as against the export made
during the same period of last year in terms of
value. The details of exports of coir and coir
products made during the 10th Plan period are
as under:
products exhibited. In addition to generating firm
business enquiries, the exporters who
participated in the events were able to get
confirmed orders.
4.4 Development of Production
Infrastructure: The Brown Fibre Sector of the
coir industry in India has progressed rapidly
during the past 3 decades.
4.4.1 Under this scheme, Coir Board is
extending financial assistance to the tune of 25
per cent of the cost of equipments and
infrastructural facilities subject to ceiling of Rs.
1 lakh for setting up of coir units and Rs. 50,000
for modernisation of existing coir units and for
installation of generator sets in fibre/curled coir
units. Coir Board is also organising Entre-
preneurs Development Programme/Quality
Improvement Programme to motivate young
entrepreneurs and to create quality awareness.
The plan programmes for the development of
Brown Fibre Sector are implemented through
the three Regional Offices of the Board located
at Bangalore, Visakhapatnam and Pollachi and
the Research Cum Extension Centre (RCEC)
at Tenkasi (Tamil Nadu).
4.4.2 Financial assistance given to the units
during the 10th Plan period are as under:
4.3.2 During the year 2004-2005, the Coir
Board participated in the following fairs and
exhibitions for promotion of exports coir and coir
products abroad: (i) Eurasia Floor 2004,
Istanbul, Turkey; (ii) SAITEX 2004,
Johannesburg, South Africa; (iii) Domotex 2005,
Hannover, Germany; (iv) Indian Handicrafts &
Gift Fair, New Delhi; (v) SAARC Trade Fair, New
Delhi; and (vi) Malaysian Furniture Export
Exhibition (MAFEX), Kualalumpur, Malaysia
In all the above exhibitions visitors and
buyers evinced keen interest on the range of
Year Quantity Value(M.Ts) (Rs. crore)
2002-2003 84183 352.70
2003-2004 98798 400.40
2004-05 (April 04
to January 05) 95412 387.31
37
4.5 Co-operativisation : The workers in the
coir sector are mostly un-organised. The
Centrally Sponsored scheme for Co-
operativisation is expected to revitalize the
dormant cooperative societies and also bring
80 per cent of the workers in the coir sector
under the cooperative fold.
4.5.1 The objective of this scheme is to provide
(i) share capital assistance to coir societies in
the form of loan, (ii) managerial subsidy, (iii)
equipment assistance, and Integrated Coir
Development Project in Kerala, Tamil Nadu and
Karnataka. The scheme covers coir producing
States/Union Territories where there is a
potential for forming coir co-operatives.
4.5.2 Central assistance under the scheme
covers 50 per cent of the expenditure of the
project under the scheme and the remaining
50 per cent is met by the concerned State
Government/Union Territory.
4.6 Training, Extension, QualityImprovement, Mahila Coir Yojanaand Welfare Measures
4.6.1 Training : The Board continued to impart
training in processing of coir to the artisans and
workers engaged in the coir industry through
its training centre located at Kalavoor, Alleppey.
The following training programmes are
conducted by the NCT&DC: (i) Advanced
Training Course; (ii) Artisans Training Course;
(iii) Training in Motorised Ratt Spinning; (iv)
Training in Motorised Traditional Ratt Spinning;
(v) Training in Pith Composting; and (vi) Short
term training in spinning and dyeing, weaving
frame mats, loom, mats and matting.
The Board is also conducting training
activities in different field training centres in
order to suit the convenience of coir workers
from far off places who cannot attend the
training activities at NCT&DC, Kalavoor. The
Field Training Centres are run with the help of
NGOs/Co-operative Societies engaged in coir
activities. The training activities are given in
spinning motorised ratt and motorised traditional
ratt. The number of persons trained during the
10th Plan period are as under:
Year Number of personstrained
2002-2003 3371
2003-2004 6829
2004-2005 7967(upto 31.1.2005)
4.6.2 Quality: The Coir Board has been
organizing Entrepreneurship Development
Programmes (EDPs) and Quality Improvement
Programmes (QIPs) every year to motivate
entrepreneurs to take up coir production and to
create quality consciousness among the coir
workers in various processing activities viz:,
spinning, dyeing and on improving the quality
of yarn and coir products. During the year 2003-
2004, 51 QIPs/EDPs have been conducted.
4.6.3 Mahila Coir Yojana : The Mahila Coir
Yojana is the first women oriented self
employment scheme in the coir industry which
provides self employment opportunities to the
38
rural women artisans in regions producing coir
fibre. Conversion of coir fibre into yarn on
motorised ratt in rural house-holds provide
scope for large scale employment, improvement
in productivity and quality, better working
conditions and higher income to the workers.
The scheme envisages distribution of motorised
ratts for spinning coir yarn to women artisans
after giving training. Not more than one artisan
per household is eligible to receive assistance
under the scheme. Women spinners are trained
for two months in spinning coir yarn on
motorised ratt at the Board’s training centres.
A stipend of Rs.500/- is paid to the trainees. A
trainee who passes the test conducted at the
end of the training become eligible for subsidy
for purchasing a motorised ratt. The beneficiary
under the scheme is eligible for a subsidy of 75
per cent of the cost of the ratt subject to a
maximum of Rs.7,500/-. Details of distribution
of ratts and the assistance sanctioned during
the 10th Plan period are as under:
have been settled and a total compensation of
Rs. 30,62,500/- has been paid. The scheme
covers 4 lakhs coir workers all over the country.
The scheme provides compensation to coir
workers who succumbed to accident death or
permanent/partial disability. The policy shall
provide financial compensation to the disabled
coir worker or nominee of the disabled /
deceased coir worker.
5.0 INTEGRATED COIR DEVE-LOPMENT PROJECT (ICDP)
The ICDP is being implemented in the
coir producing states as a modernisation
component of the Centrally sponsored scheme
of co-operativisation. The ICDP is being
implemented in the States of Kerala, Tamil
Nadu and Karnataka. All coir producing states
are persuaded to implement ICDP in their
States.
5.1 The scheme provides for assistance like
share capital, managerial subsidy, equipment
assistance etc. The scheme has helped in many
ways for formation of viable coir co-operatives
and bring the coir workers into the co-operative
fold to protect them from exploitation by the
middlemen.
5.2 The State Governments of Kerala, Tamil
Nadu, Karnataka and West Bengal have
formulated the ICDP with the objective of
modernisaton and development of infrastructure
in the cooperative sector. The Government of
India has provided Rs.100 lakh towards Co-
operativisation during the year 2004-2005.
4.6.4 Insurance Scheme for coir workers:
The Coir Board has been implementing the Coir
Board Coir Workers’ Group Personal Accident
Insurance Scheme for the benefit of coir
workers in the country. The Scheme came into
effect on 1 December 1998 and is continuing.
Since its inception, a total number of 130 claims
Year No. of ratts Assistancedistributed sanctioned
2002-2003 1303 38,79,000
2003-2004 1514 62,63,000
2004-2005(upto 31.1.2005) 1977 63,62,987
39
(Rs. crore)
Name of the Scheme 2002-03 2003-04 2004-05 2004-05RE (as on
31.01.2005) (**)
Plan – (Science & Technology) 4.25 4.25 5.00 3.75
Plan-(General)Training, Extension & Quality 0.95 0.95 2.25 1.53Improvement including MahilaCoir Yojana and Welfare Measures
Domestic Market Promotion 2.70 3.70 5.41 3.68
Export Promotion 1.50 1.25 1.00 0.68
Trade Information Service, Information 2.15 1.80 1.20 0.81Technology and Strengthening of H.Q
Development of Production Infrastructure 1.40 1.20 1.30 0.88
Economic Market Research - 0.10 0.11 0.07
Plan - Cooperativisation 0.04 0.83 1.00 -
Plan - Development of NE Region 0.76 0.44 0.73 -(adjusted from DMP)
Total 13.75 14.52 18.00 11.40
(**)Funds released by the Government of India. The amount indicated against the sub-schemes under PlanGeneral are the proportionate amounts of the total release of Rs.7.65 crore by the Government of India.
Budgetary Support to the Coir Board by the Government during the 10th Plan period
6.0 HINDUSTAN COIR
As per Government of India’s decision
to mechanise 1/3rd
of coir matting sector, the
Hindustan Coir, a powerloom coir matting
manufacturing factory under Coir Board was
established in the year 1968 as a Pilot
Project. The total production of Hindustan
Coir matting during the 10th Plan period are
as under:
7.0 CLUSTER AREA DEVELOP-MENT
The Coir Board under the recently
concluded UNDP Sponsored Project had
(Quantity = Sq. Mtrs.) (Value = Rupees lakh)
2002-03 2003-04 2004-05(up to 31.1.05)
Quantity 1,54,270.06 1,96,269.00 1,87,261.78
Value 144.06 183.00 182.24
Production of Hindustan Coir matting during the 10th
Plan period
40
promoted consortias of small scale coir
manufacturers and small and medium exporters
for manufacture of products in a cost effective
manner by sourcing the raw material in bulk and
also marketing the products through the
consortium by reducing the marketing
expenditure. Based on the success of the
consortium movement, UNIDO has selected
Alleppey as a cluster for development and
initiated activities for promotion of consortium.
Already 60 consortia have been formed in the
coir cluster with the technical support of Coir
Board and this has facilitated the manufacturers
in producing coir products in a cost effective
manner.
8.0 COIR TRADE INFORMATIONCENTRE
A Coir Trade Information Centre was set
up at Coir Board headquarters with the technical
collaboration of NCTI, New Delhi. The Centre
cater to the needs of coir industry in India by
collecting information regarding production and
marketing of coir all over the world. The Centre
will provide market intelligence support to the
coir industry to explore new markets and
strengthen the existing markets of coir.
8.1 A web site of Coir Board has been hosted
with all relevant details for the benefit of the
industry which is being updated regularly. The
Centre is working with adequate qualified
experts for conducting desk and field studies
regarding production, marketing of coir products
and its competitive products in the international
market.
9.0 SWARNA JAYANTHI COIRCLUSTER VIKAS YOJANA
The Coir Board celebrated its 50th year of
establishment during the year 2003-04 and to
commemorate the auspicious occasion, the
Board has decided to implement coir
development initiatives in 50 selected clusters
over a period of 10 years. Initially the Board
has selected 11 clusters for intervention. The
activities proposed to be implemented in these
clusters are training of artisans to create a
skilled man power, Entrepreneurship
Development Programmes, Exposure Tours to
the prospective entrepreneurs and existing
entrepreneurs, formation of consortia, SHGs etc
for the benefit of the women workers,
implementing Mahila Coir Yojana etc. The
Board has already initiated the training activities
in all the clusters selected and as on now a
total number of 4113 women workers have been
trained.
9.1 To commemorate the Golden Jubilee
Celebrations the Board proposes to publish a
Gazetteer on Coir Industry and has received
offers from the experts in the field to render
their services for the preparation of the
Gazetteer.
9.2 The Board has evolved a separate logo
for Golden Jubilee and has also put up Sign
Boards in the Board’s establishments. It is also
proposed to undertake the following activities
during the Golden Jubilee Year:
41
! Release of stamp to mark the Golden
Jubilee Year of the Coir Board.
! Organising seminars/ workshops, Road
shows to promote coir products especially
coir geotextiles
! Organise Quality Awareness
Programmes, Camps etc. in the coir
production and conduct competitions for
the women spinners already trained.
! Production of a publicity film on coir
! Production of a brochure on coir
geotextiles
! Production of paper carry bags with
Golden Jubilee Logo of coir
9.3 It has also been decided to organise
distribution of coir awards to the outstanding
achievements in the various fields including
export domestic market development etc. in a
function to commemorate the Golden Jubilee
Year of the Coir Board.
Coir Board Golden Jubilee Celebrations
42
Chapter V
PRIME MINISTER’S ROZGAR YOJANA
1.0 INTRODUCTION
1.1 The Prime Minister’s Rozgar Yojana
(PMRY) was launched on 02 October 1993 to
assist educated unemployed youth in setting
up self-employment ventures. Initially, the
PMRY was implemented only in the urban
areas of the country. Since 1994-95, it has been
implemented in both urban and rural areas. The
Yojana has been continued in the 10th Five Year
Plan with a Plan target of 11 lakh units,
generating 16.5 lakh employment opportunities.
1.2 The Common Minimum Programme
(CMP) of the UPA Government envisages
creation of additional employment opportunities
in the rural non-farm sector. Accordingly, the
targets for the years 2004-05 & 2005-06 under
the Yojana have been enhanced from 2.20 lakh
beneficiaries to 2.50 lakh beneficiaries,
generating 3.75 lakh self-employment
opportunities per annum.
2.0 IMPLEMENTATION OF THESCHEME
2.1 Under PMRY, an educated unemployed
person living in any part of the country, rural or
urban and eligible under the scheme, has to
apply for assistance to the General Manager,
DIC in the district to which he belongs. In cases
where the applicant belongs to the city of
Kolkata, Chennai, Mumbai and Delhi, the
application has to be filed with the office of the
Director of Industries in the cities of Kolkata,
Chennai and Mumbai and in the office of
Deputy Commissioner of the respective zones
in Delhi.
2.2 The Task Force Committees set up at
district level or the Task Force Constituted at
sub-divisional level/block level are entrusted
with the work of scrutinising the applications
and interviewing the candidates. The names
of approved candidates by Task Force
Committee are sponsored to the bank branches
for sanction of loans.
2.3 In addition to sponsoring of applications
by Task Forces, bank branches themselves
may also receive applications directly from the
eligible persons under the scheme. However,
such applications should be sent to sponsoring
agencies with their observations on the viability
and bankability of the projects. Sponsoring
agencies would formally sponsor such
applications back to the bank branches for
sanction of loan.
43
3.0 ELIGIBILITY NORMS UNDERTHE SCHEME
3.1 Age
! 18 to 35 years for all educated unem-
ployed in the country except for North
Eastern States, Uttaranchal, Himachal
Pradesh and Jammu & Kashmir.
! 18 to 40 years for all educated unem-
ployed in North Eastern States, Himachal
Pradesh, Uttaranchal and J&K.
! 18 to 45 years for Scheduled Caste/
Scheduled Tribes, Ex-servicemen,
Physically Handicapped and Women.
3.2 Educational Qualifications: 8th
Passed. Preference will be given to those
trained in any trade in Government recognised/
approved institutions for at least six months.
3.3 Family Income: Neither the income of
the beneficiary along with spouse nor the
income of parents of the beneficiaries should
exceed Rs. 40,000/- per annum.
3.4 Residency: Beneficiary should be a
permanent resident of the area for at least 3
years (relaxed for married men in Meghalaya
and for married women in rest of the country).
For married men in Meghalaya and for married
women in rest of the country, the residency
criteria applies to the spouse or in-laws.
3.5 Defaulter: Should not be a defaulter to
any Nationalisd Bank/Financial Institution/
Cooperative Bank. Further, a person already
assisted under other subsidy linked
Government schemes would not be eligible
under the Scheme.
3.6 Reservation: Preference should be
given to the weaker sections including women.
The Scheme envisages 22.5 per cent
reservation for SC/STs and 27 per cent for other
Backward Classes (OBCs). In case SC/ST/
OBC candidates are not available, State/Union
Territories (UT) Govternment will be competent
to consider other categories of candidates
under PMRY.
4.0 FINANCIAL TERMS UNDERPMRY
4.1 Project Cost
! Rs. 1.00 lakh for business sector.
! Rs. 2.00 lakh for other activities, loan to
be of composite nature.
! If two or more eligible persons join
together in a partnership, projects costing
up to Rs. 10.00 lakh can be covered.
However, assistance shall be limited to
individual admissibility.
! Self Help Groups (SHG) can be
considered for assistance under the
Scheme.
4.2 Subsidy & Margin Money: Subsidy is
provided @ 15 per cent of the project cost
subject to a ceiling of Rs. 7,500/- per
beneficiary. In the North Eastern (NE) States,
subsidy is provided @ 15 per cent of the project
cost, subject to a ceiling of Rs. 15,000/- per
beneficiary. Banks will be allowed to take
44
margin money from the entrepreneur varying
from 5 per cent to 16.25 per cent of the project
cost so as to make the total of the subsidy and
the margin money equal to 20 per cent of the
project cost.
4.3 Collateral: No collateral for units in
industry sector with project cost upto Rs.2 lakh
(the loan ceiling under the PMRY) is required.
For partnership project under industry sector,
the exemption limit for obtention of collateral
security will be Rs.5 lakh per borrowal account.
For units in service and business sectors no
collateral for project upto Rs.1.00 lakh is
required. Exemption from collateral in case of
partnership project will also be limited to an
amount of Rs.1.00 lakh per person participating
in the project.
4.4 Rate of interest & Repayment
schedule: Normal bank rate of interest shall
be charged. Repayment Schedule may range
between 3 to 7 years after an initial moratorium
as may be prescribed*.
4.5.1 Training of beneficiaries: The
beneficiaries sanctioned loan under the
Scheme have to undergo entrepreneurial
development training of 15-20 working days
for projects under the Industry Sector and of
7-10 working days for projects under Service
& Business Sectors. The ceiling on training
expenditure for project under the Industry
Sector is Rs. 1,000/-per case inclusive of
stipend of Rs.300/- per beneficiary and
Rs.500/- per case inclusive of stipend of
Rs.150/- per beneficiary for service and
business sectors to be made available to the
States/UTs.
State/UT Governments have been asked
to involve reputed NGOs, ITIs, Polytechnic
colleges in the training of PMRY beneficiaries.
Banks are to be given preference for providing
training. State/UT Govts. may also consider
possibilities of organising special training
courses exclusively for SC/STs and women
entrepreneurs.
4.5.2 Contingency funds for scheme
Administration: Contingency funds @
Rs.250/- per case sanctioned are released to
States/UTs based on the cases sanctioned
under PMRY from 1996-97 onwards (enhanced
from an earlier rate of Rs.100 per beneficiary).
The funds are meant for utilisation for meeting
expenditure in administrating and supervising
PMRY at the DIC level.
* As per the Reserve Bank of India guidelines, rate of interest on loans upto Rs.2.00 lakh should not exceed the Prime LendingRate (PLR) of the banks.
Number of Persons Trained under PMRY during10
th plan period
Year No. of beneficiariesTrained (Nos.)
2002-2003 235558
2003-2004 234791
2004-2005* 113260
Total 583609
Source: State Govt. Reports* Provisional
45
In order to provide greater flexibility in
utilisation of contingency funds under PMRY
to the States/UTs, the expenditure norms have
been modified and the ambit of expenditures
admissible widened.
5.0 PROJECT PROFILES
For the guidance of entrepreneurs in
selecting the projects, project profiles have
been prepared by the SISIs & State/UT
Governments. 7 volumes of project profiles
have been centrally circulated to the DICs,
which were prepared by SISIs/NISIET. In
addition 22 volumes of project profiles have
been prepared for SISIs for local circulation.
Profiles have also been prepared by the state/
UT Governments. Thus a bank of profiles for
assisting entrepreneurs exist at the district
level. A Training & Trainers manual has been
circulated to all the field formations. Training
cassettes have also been prepared & sent to
the States. The Ministry has got revised
‘Training Curriculum, Methodology of training’
by Rural Development & Self Employment
Training Institute (RUDSETI), Karnataka.
Banks are given preference if they come
forward to arrange training for the PMRY
beneficiaries.
6.0 ASSISTANCE FROM STATES/UTs
State/UT Governments may provide
necessary infrastructure support like provision
of industrial sites, shops, water on preferential
basis to these entrepreneurs. Provisions of sites
and sheds at concessional rate to service
ventures in urban areas will be essential for their
success. Priority in electric connections and
other general tax concessions/incentives may
also be provided.
7.0 MONITORING & GUIDANCEFOR PMRY
The District, being a well-established
geographical unit for many State/Central
promotional programmes, is the basic unit for
implementation of the Prime Minister’s RozgarPMRY beneficiary
46
Yojana. In all the districts, District Industries
Centre is the implementing agency except in
the metropolitan cities of Calcutta, Mumbai &
Chennai where the Directorate of Industries
themselves are implementing the scheme. In
the case of Mumbai, the SISI also receives the
applications, In Delhi, the applications are
received in the office of the Deputy
Commissioner of the respective zones. The field
agencies in consultation with the banks of the
respective areas are responsible for the
formulation of self-employment plans, their
implementation and monitoring under the over-
all guidance of the District PMRY Committee.
They are required to formulate location specific
plans of action, based on realistic demand
assessment for various activities.
7.1 Monitoring and Guidance for PMRY at
district level: The Prime Minister’s Rozgar
Yojana is being monitored and guided at district
level by the district PMRY Committee under the
Chairmanship of District Collector/Dy.
Commissioner. The Committee is supposed to
meet once in a month and send monthly
progress report in the prescribed Proforma to
the Directorate of Industries of the State/UT
concerned.
7.2 Monitoring and Guidance for PMRY at
State/UT level: Monitoring and guidance for the
Prime Minister’s Rozgar Yojana at State/UT level
is undertaken by the State/UT PMRY Committee
under the Chairmanship of the Chief Secretary.
The Committee is supposed to meet once in a
quarter to review the progress and send the
report along with remarks to the Ministry of Agro
& Rural Industries, Govt. of India, New Delhi.
7.3 Monitoring and Guidance for PMRY at
Government of India level: Prime Minister’s
Rozgar Yojana is monitored at Central
Government Level by the High Powered
Committee on PMRY under the Chairmanship
of Secretary (SSI & ARI).
8.0 EMPLOYMENT GENERATIONUNDER THE PMRY
The estimated employment generation
under the Scheme during the 10th Plan period
are as under:
Cumulative Status of Progress under the PMRY Scheme during 10th Plan Period
Year Target Applications Cases Sanctioned Cases Disbursed
(No.) Received No. Amount No. Amount(No.) (Rs. crore) (Rs. crore)
2002-2003 220000 414001 228031 1497 190521 1198
2003-2004 220000 430961 259811 1659 204987 1276
2004-2005 250000 292413 137412 977 82993 520
(upto Jan. 2005)
10th PlanTotal: 690000 1137375 625254 4133 478501 2994
Source: RBI
47
Amount (Rs. crore)
Year Budget Allocation Funds Released
Subsidy Entrepreneurial Deve- Totallopment Programme
2002-03 169.00 152.55 15.55 168.10
2003-04 169.00 147.63 20.20 167.83
2004-05 218.90 190.48 27.65 218.13*
*Upto 10.03.2005
Details of budget allocations and expenditure incurred under PMRY during the Tenth Plan period
9.0 BUDGETARY ALLOCATIONAND EXPENDITURE UNDERTHE SCHEME
The Central Government assists the
entrepreneurs through capital subsidy
and provides funds to States for entrepreneurial
development, contingencies, etc.
10.0 RECENT INITIATIVES
! The ‘Training Curricula’ and ‘Methodology
of Training’ under the PMRY has been
revised by the Rural Development & Self
Employment Training Institute
(RUDSETI), Karnataka.
! Plan target for the year 2004-05 and
2005-06 has been enhanced from 2.20
lakh beneficiaries to 2.50 lakh bene-
ficiaries per annum.
! In the ‘Review Meeting’ held on
10.02.2005, implementing agencies –
States and banks were urged to sanction
applications @ 130 per cent of the target
Year Estimated Empl.Generated (Nos.)
2002-2003 2,85,782
2003-2004 3,07,480
2004-2005* 1,24,489
* up to January 2005.
PMRY beneficiary
48
by 31.03.2005 for the Programme year
2004-05 and ensure disbursement of
sanctioned applications by 30.06.2005.
This Ministry has been implementing the
Scheme of National Programme for Rural
Industrialisation (NPRI) for development of rural
clusters since 1999-2000. The NPRI Scheme
has a provision for extending financial
assistance up to Rs. 5 lakh for interventions in
the cluster.
To monitor the implementation of the
scheme, an Inter-Ministerial Task Force (IMTF)
under the Chairmanship of the Secretary (SSI
& ARI) has been constituted. Other members
of the task force are Development
Commissioner (Small Scale Industries),
Financial Advisor, Joint Secretary (M/o ARI),
and the representatives of Ministry of Rural
Development, Ministry of Welfare, Ministry of
Food Processing Industries, Ministry of Textlies
(one each from Handloom & Handicrafts),
Department of Women & Child Development,
Planning Commission, Small Industries
Development Bank of India (SIDBI), National
Bank for Agriculture and Rural Development
(NABARD), Khadi & Village Industries
Commission (KVIC). The Director (PMRY) is
the Member Secretary of the Inter-Ministerial
Task Force.
In order to facilitate the implementation
of the programme, a scheme has been
formulated on NPRI, which has a provision for
extending financial assistance upto Rs. 5 lakh
for interventions in the cluster. The purpose of
this financial assistance is to fill in certain gaps
in the development of the clusters and does not
constitute the entire amount required for such
development
49
Chapter VI
ARI ACTIVITIES IN THENORTH-EASTERN REGION
1.0 The North Eastern (NE) Region consists
of States of Assam, Arunachal Pradesh,
Manipur, Meghalaya, Mizoram, Nagaland,
Tripura and Sikkim. This region inspite of
having excellent potential for economic
development has remained under developed
due to inadequate communication facilities,
varied typographical features, poor
infrastructure, etc.
1.1 The Ministry of Agro and Rural Industries
(ARI) implements a number of developmental
schemes in the NE Region through Khadi and
Village Industries Commission (KVIC) and Coir
Board. The various schemes under
implementation in the North Eastern Region
includes Prime Minister’s Rozgar Yojana
(PMRY), Rural Employment Generation
Programme (REGP), schemes relating to
Khadi activities, schemes relating to promotion
of coir and coir products and National
Programme for Rural Industrialisation (NPRI).
2.0 KVI PROGRAMMES IN NORTHEASTERN STATES
In order to have better implementation
and monitoring of Khadi and Village Industries
(KVI) programmes in the NE Region, Khadi and
Village Industries Commission (KVIC) has
established a Zonal Office at Guwahati and
other field offices in all the NE States.
2.1 KVI programmes are being implemented
in these areas through State KVI Boards,
registered institutions, cooperative societies and
entrepreneurs.
2.2 The village industries which are being set
up in this hilly and backward areas are pottery,
beekeeping, processing of cereals & pulses,
fibre, fruit & vegetable processing industries,
soap, activities like carpentry and blacksmithy
and also khadi and polyvastra.
2.3 The programmes of KVIC for rural
industrialization can definitely increase the
earnings and output of high quality KVI
goods from this region and reduce the
drudgery of workers, ensure optimum
utilisation of locally available raw materials
alongwith the up-gradation of skill of the local
artisans.
2.4 For the development of NE Region, the
Ministry has earmarked separate budget
50
allocation for KVI programmes. The funds
released to KVIC under Plan for the NE Region
during the period 2004-2005 was Rs. 16.45
crore (up to January 2005). For the period 2005-
06, a budget provision of Rs. 85.90 crore has
been made.
2.5 Over the years, KVIC has made
considerable achievements in the NE Region.
2.7 To cater to the needs of skill develop-
ment in NE Region, a multi-disciplinary training
center at Doimukh, Arunachal Pradesh is
being run by a KVIC assisted institution. In
addition, another training center is being run
by a registered institution at Kumarikatta,
Assam. Further, the Assam State KVI Board
and Mizoram KVI Board are also managing
training centers in their respective areas of
2.6 A large number of registered institutions
have been set up for implementing KVI
programmes in the NE Region. Though the
institutional base in this Region is comparatively
lower as compared to the rest of the country,
the Assam and Manipur have made good
progress. There are 19 institutions (18
institutions in Assam and 01 institution in
Nagaland) who are directly aided by the KVIC
in this Region.
operation. Under Training programme, the
candidates from NE Region are given special
consideration by going through second class
Railway fare for attending the training and also
reimbursement of daily allowance during the
training period.
2.8 A number of exclusive sales outlets are
functioning for promotion of KVI products in NE
Region. Details are as under:
S. No States 2002-2003 2003-2004
Production Employment Production Employment
(value: Rs. lakh) (lakh persons) (value: Rs. lakh) (lakh persons)
1 Arunachal Pradesh 317.88 0.01 524.67 0.01
2 Assam 6074.74 1.22 8368.55 1.39
3 Manipur 5997.52 0.62 6197.16 0.62
4 Meghalaya 3100.46 0.25 3709.57 0.27
5 Mizoram 3769.44 0.23 3936.02 0.24
6 Nagaland 4583.94 0.30 4962.48 0.32
7 Tripura 2235.29 0.28 3145.11 0.33
8 Sikkim 373.51 0.06 767.26 0.08
Total 26452.78 2.97 31610.82 3.26
Achievements made in terms of production and employment in the KVI sectorduring the 10
th Plan period in the NE Region
51
3.0 RURAL EMPLOYMENT GENE-RATION PROGRAMME IN NEREGION
Under REGP, concessional facilities are
extended to the weaker sections and to the
entrepreneurs of the N.E. region. Accordingly,
30 per cent margin money in place of 25 per
cent for other areas of the country is provided
to the entrepreneurs form this region. For setting
up of projects in NE Region, the own
contribution from entrepreneur is only 5 per cent
S.No States No. of salesoutlets
1 Arunachal Pradesh 092 Assam 963 Manipur 094 Meghalaya 045 Mizoram 026 Nagaland 077 Tripura 028. Sikkim 07
Total 136
A REGP entrepreneur working on Kargha
of project cost in place of 10 per cent of project
cost in other areas.
3.1 Special attention has been given for
implementation of REGP in NE States by
providing additional funds for conducting
workshops and awareness camps.
4.0 NEW INITIATIVES
4.1 S&T Interface with IIT, Guwahati : The
following areas have been identified for taking
S.No States Project MM utilized Employment
(Rs. lakh) generated
1 Arunachal Pradesh 30 53.06 950
2 Assam 772 481.01 9593
3 Manipur 38 13.16 211
4 Meghalaya 87 131.67 2517
5 Mizoram 117 243.83 4833
6 Nagaland 190 234.60 4048
7 Tripura 170 160.76 2919
8 Sikkim 60 82.52 1587
Total 1464 1400.61 26658
During the year 2004-05 (up to 15 January 2005), the number of projects set up in the NE Regionalongwith amount of margin money utilized and employment generated.
52
up R&D Programme by KVIC in collaboration
with IIT, Guwahati.
! Non-conventional Energy (Biogas
Digester, Gasifier and Vermi Compost).
! Development of loin looms.
! Design and development in cane &
bamboo.
! Packaging design for KVI products.
! Testing of KVI products.
4.2 Collaborative Approach : Spices Board
and KVIC have jointly extended financial help
and technology support for setting up of spice
making units (Assam and Arunchal Pradesh).
The Central Leather Research Institute (CLRI)
under its leather Technology Mission has
extended support for setting up leather products
manufacturing projects in Manipur and
Nagaland through directly aided institutions. In
Nagaland, a project for development of
beekeeping activities has been initiated and
training and credit support have been provided
under REGP. Marketing component has been
linked with “KOMUL” a cooperative society
doing excellent work in Nagaland. Also close
association has been built with the Indian
Institute of Entrepreneurship (IIE), Guwahati
looking into its efforts towards development of
entrepreneurship in NE Region. The
performance of the scheme has been
encouraging.
4.3 UNDP KVIC Project : Under United
Nations Development Programme a pottery
cluster programme has been implemented
through the ‘North East Affected Area
Development Society (NEADS). 60 pottery
artisans have been trained and tools supplied
to them in 2004-05 (up to 15 January 2005).
05 artisan’s family has been also sent for
exposure tour to other States. A project on
Hand Made Paper has been implemented
through District Industries Centre at Jorhat,
Assam.
5.0 COIR BOARD
The activities carried out by the Coir
Board during 2004-05 (up to January 2005) for
popularizing the coir and coir products in North
Eastern Region are as under:
! Two Entrepreneurial Development
Programmes (EDPs) at Barpeta and at
Tihu in the State of Assam have been
conducted.
53
! Coir Board successfully participated in the
following exhibitions by displaying good
quality coir products in attractive designs
and patterns:
(i) KVIC Exhibition, Agartala
(ii) Khati and Village Industries
Exhibition, Agartala
(iii) 5th National Expo, Guwahati
(iv) Megha Trade Fare, Guwahati
(v) Pragati III, Guwahati
(vi) Itanagar Expo, Arunachal Pradesh
! As part of promotion of uses of coir
matting, Coir Board supplied 17476 Sq.
Mts. of coir matting to primary and lower
primary schools in the state of Sikkim,
Arunachal Pradesh and Tripura at a total
expenditure of Rs.29,91,744/-. Supply of
matting in the state of Manipur,
Meghalaya and Missoram are under
progress.
As part of New Enterprise Creation
Training Programmes on Coir Products, Coir
Board has completed preliminary steps to
commence training through Indian Institute of
Entrepreneurship, Guwahaty at an expenditure
of Rs.7.75 lakh.
6.0 PRIME MINISTER’S ROZGARYOJANA
The Prime Minister’s Rozgar Yojana was
launched on 02 October 1993 in the entire
country including in the States of North East
Region. During 1993-94, the scheme was in
operation only in urban areas of the country.
Since 1994-95, the scheme is being
implemented in both urban as well as in the
rural areas. Under the scheme, eligible youth
are provided assistance to set up tiny units in
all economically viable activities.
6.1 As a part of the package for the North
East States, certain parameters of the PMRY
were relaxed in April, 1998. These parameters
include enhancement in family income ceiling
from Rs. 24,000/- per annum to Rs. 40,000/-
per annum, relaxation in upper age limit from
18-35 years to 18-40 years and expansion of
PMRY to cover areas of Horticulture, Piggery,
Fishing, Forestry so as to cover all economically
viable activities. Subsequently, parameters of
the scheme were modified for the entire country
with special relaxation for the North Eastern
States as under:
Special Relaxation for North EasternStates
6.1.1 Eligible Age Limit : The eligible age limit
for North Eastern States is 18-40 years as
compared to 18-35 years for rest of the
country.
54
The State-wise (cumulative) target and the progress of the PMRY Scheme in the NE States during10
th plan from 2002-03 to 2004-05 (up to January 2004) based on the reports received from the RBI
SI. State/UTs Plan No. of No. of % % Employ-No Target Appli. Cases Sanctioned Disbursed ment
(Nos.) Sanctioned Disbursed to target to target Generated* by banks by banks
1 Assam 21000 14536 9562 69.22 45.53 14343
2 ManiPur 4000 1273 1074 31.83 26.85 1611
3 Meghalaya 1050 831 637 79.14 60.67 956
4 Nagaland 950 254 234 26.74 24.63 351
5 Tripura 2500 3948 3111 157.92 124.44 4667
6 Arunachal Pradesh 550 1042 775 189.45 140.91 1163
7 Mizoram 650 1116 930 171.69 143.08 1395
8 Sikkim 250 75 65 30.00 26.00 98
Total 30950 23075 16388 74.56 52.95 24582
Source: RBI* Employment Generation is estimated at the rate of 1.5 person per case disbursed
16,388 cases from 2002-03 to 2004-05 (up to
January 2004) as reported by the Reserve Bank
of India.
8.0 EMPLOYMENT GENERATION
It is estimated that employment
opportunities have been created for about
24,582 persons from 2002-03 to 2004-05 up to
January, 2005 in the North Eastern States
including Sikkim under the PMRY.
9.0 RELEASE OF FUNDS
Under the schemes, the Central
Government, provides funds for subsidy,
training and contingency etc. The funds for
subsidy are authorized to the RBI to be passed
on to the individual beneficiaries through the
implementing banks. Hence the State/UT wise
6.1.2 Subsidy : The subsidy is provided @ 15
per cent of the project cost subject to a ceiling
of Rs.15,000/- per beneficiary (as compared to
Rs.7,500/- per beneficiary in rest of the country).
6.1.3 Margin Money Contribution : The
margin money contribution from the beneficiary
varies from 5 per cent to 12.5 per cent of the
project cost so as to make the total of subsidy
and margin money contribution equal to 20
percent of the project cost in the North Eastern
States (as compared to 5 per cent to 16.25 per
cent in rest of the country).
7.0 PROGRESS OF THE PMRYSCHEME
Against the Plan Target of 30950 for NE
States including Sikkim, loans have been
sanctioned in 23,075 cases and disbursed in
55
State-wise details of funds released to North Eastern States including Sikkim from 2002-03 to 2004-05 under PMRY during the 10
th Plan period
(Rs. in thousand)
Sl. State/UT 2002-03 2003-04 2004-05No. (as on 10.3.2005)
1 Assam 11072.700 5897.150 10071.050
2 Arunachal Pradesh 380.850 346.800 539.448
3 Manipur 0.00 557.00 454.800
4 Meghalaya 185.500 709.621 829.150
5 Mizoram 470.600 360.500 324.300
6 Nagaland 683.780 100.050 1712.250
7 Tripura 1734.950 1822.950 2124.400
8 Sikkim 10.000 47.700 24.600
Total 14538.380 9841.771 16079.998
sanctioned loan. So far from the period 2002-
03 to 2004-05, as on 10.03.2005, an amount of
Rs. 40,460,149/- has been released to North
Eastern States including Sikkim for training and
contingency, etc.
12.0 RECOVERY OF LOAN OVERDUES
The state-wise recovery of loan over
dues in the North Eastern States based on
RBI reports is at Table. It may be seen that
on this account the best performing state is
Mizoram (31.54 per cent) followed by
Arunachal Pradesh (30.31 per cent). The
recovery of loan overdues is lowest in
Manipur (6.21 per cent) followed by Nagaland
(15.85 per cent).
details of funds released for subsidy are not
available.
10.0 FUNDS FOR TRAINING
The training funds are released to State/
UTs @ Rs. 1000/- per beneficiary for projects
under industry sector and @ Rs. 500/- per
beneficiary under service and business
sectors. An entrepreneurial training of 15-20
working days for setting up projects under
Industry Sector and of 7-10 working days
setting up for projects under Service and
Business Sectors is provided before
disbursement of loan.
11.0 CONTINGENCY FUNDS
The funds for contingency are released
to the State/UTs @ Rs. 250/- per beneficiary
56
Recovery of PMRY Loan in North Eastern Region
Percentage of recovery against demand
Sl. Name of the State Half Year ended Half Year ended Half Year endedNo. March, 2002 March, 2003 March, 2004
1 Assam 15.7% 15.5% 18.05%
2 Manipur 1.3% 5.1% 6.21%
3 Meghalaya 34.7% 18.6% 21.62%
4 Nagaland 13.8% 13.8% 15.85%
5 Tripura 19.7% 26.8% 29.75%
6 Arunachal Pradesh 29.4% 42.4% 30.31%
7 Mizoram 24.9% 26.7% 31.54%
8 Sikkim 27.1% 21.6% 22.17%
All India 34.9% 35.2% 34.96%
Based on RBI Reports
57
Chapter VII
SUMMARY OF THE C&AG REPORT
REPLY
1. The Khadi Certification Rules provide for
creation of Artisan Welfare Fund (AWF) for the
welfare of self-employed artisans by institutions
from out of artisans’ subscriptions and matching
contribution of institutions at such rates as may
be prescribed by the All India Khadi Certification
Committee or the Khadi and Village Industries
Commission (KVIC) or its authorised officers.
2. In order to consider various issues raised
by audit, a sub-committee of Central
Certification Committee (CCC) of KVIC was
constituted. In the report submitted by this sub-
committee, it was stated that the verification of
balance sheets of these three institutions
indicates that the actual amount under AWF
account is Rs. 53.81 lakh and not Rs. 76.31
lakh as reported in the draft audit paragraph.
In the balance sheets of these institutions, the
amount of Rs 53.81 lakh under AWF head has
not been shown separately. The amount of Rs.
76.31 lakh indicated by audit also includes other
amounts received from artisans, amanat, etc.
This mistake has now been corrected and in
the balance sheets the amount under AWF has
been shown separately. The institution-wise
break-up of the amount of Rs. 53.81 lakh under
AWF account is as under:
Further, the actual interest loss on the
amount of Rs. 53.81 lakh is Rs. 17.80 lakh and
not Rs. 43.58 lakh as stated by audit (interest
Violation or Rules resulting in illegal benefit to institutions: Non investment of subscriptionsfrom the artisans and contributions by three directly aided institutions of Khadi & VillageIndustries Commission to the Artisans Welfare Fund, resulted in illegal benefit to theinstitutions amounting to Rs. 87.22 lakh and loss of interest of Rs. 53.72 lakh.
(para 9 of Report No. 4 of 2004)Autonomous Bodies
S. No. Name of the institution Amount (Rs.)
1. Khetriya Shri Gandhi Ashram, Raibareli 820680.00
2. Khetriya Shri Gandhi Ashram, Meerut 2371383.00
3. Khetriya Shri Gandhi Ashram, Sultanpur 2189058.20
Total 5381121.20
58
calculated based on the figures of balance sheet
up to 2000-2001). The institution-wise break-
up of interest loss is as under:
S. No. Name of the institution Amount (Rs.)
1. Khetriya Shri Gandhi Ashram, Raibareli 246672.00
2. Khetriya Shri Gandhi Ashram, Meerut 845672.00
3. Khetriya Shri Gandhi Ashram, Sultanpur 687705.00
Total 1780049.00
3. In the report of the sub committee it has
also been indicated that these institutions
utilized the liquidity available with them for
buying the raw material, supplying the same to
the artisans, for buying the yarn and gray khadi
from the artisans and finally for making payment
of wages to the artisans. The institutions utilised
the available liquidity to maintain the production
cycle which would otherwise have suffered and
may have led to the artisans going without any
work. Besides, the rebate claims of these
institutions remained pending with the State
Khadi and Village Industries Board further
resulting in erosion of their liquidity.
4. The report of the above sub committee
was accepted by the CCC in its 23rd meeting
held on 11 and 12 March 2004. In the said
meeting, it was also decided to waive the loss
of interest due to non deposition of AWF by
these three institutions.
5. As could be seen from above these three
khadi institutions, namely, Kshetriya Shri
Gandhi Ashram, Meerut, Kshetriya Shri Gandhi
Ashram, Sultanpur and Kshetriya Shri Gandhi
Ashram, Raibareily depend on the liquidity
available with them for buying the raw materials,
supplying the same to the khadi artisans, buying
the yarn, supplying it to weavers, buying grey
yarn from the artisans and finally payment of
wages to the artisans. These institutions provide
employment to 6945 khadi spinners, weavers
and other related artisans. Any punitive action
such as suspension of Khadi Certificate of these
institutions would cause further suffering to the
artisans on account of loss of wages/
employment. Hence their certificates have not
been suspended yet. These institutions have
also been released their eligible rebate claims
as non-payment of rebate would have led to
further liquidity crisis in these institutions.
6. As a measure of providing social security
to the artisans, 2530 of the number of artisans
of these three institutions have been covered
under the Janashree Bima Yojana which
provides insurance coverage against death and
disability. The coverage of artisans under this
programme is expected to increase further.
KVIC has also advised these institutions to
deposit the amount in the Artisan Welfare Fund
to the extent of default in a phased manner.
7. It is expected that above action on the
part of KVIC and the three institutions would
not only protect the interest of the artisans of
these three institutions but would also continue
to provide employment to them in future.
59
Chapter VIII
USE OF OFFICIAL LANGUAGE
Hindi is the Official Language of the Union
of India and the Government policy is aimed at
progressive use of Hindi in official work.
Effective steps were taken during the year in
the Ministry Agro and Rural Industries to ensure
the compliance of the Official Language Policy
of the Government, implement the annual
programme and comply with the orders of the
President on recommendations of the
Committee of Parliament on Official Language.
Consequently, there has been a constant
progress in the use of Official Language in
official work in all these offices.
COMPLIANCE OF SECTION 3 (3)OF THE OFFICIAL LANGUAGEACT, 1963
All documents such as Resolutions, gene-
ral orders, rules, licences falling under Section
3(3) of the Official Language Act and all papers
laid on the Table of the Houses of Parliament
were issued bilingually i.e. in Hindi and English.
Some papers like general orders meant for
departmental use were issued in Hindi only.
REPLIES TO HINDI LETTERS
All letters received in Hindi were replied
in Hindi only.
CORRESPONDENCE IN HINDI
Letters to State Governments, Union
Territories and their offices and offices of the
Central Government located in region ‘A’ and
‘B’ were issued in Hindi to the maximum extent
possible. Similarly, efforts were also made to
send letters in Hindi to Central Government
offices located in region ‘C’ as per targets laid
down in the Annual Programme. About 72.5
per cent correspondence were made in Hindi
in region ‘A’, 72.2 per cent in region ‘B’ and
71.3 per cent in region ‘C’ up to the quarter
ending December 2004.
SECTIONS SPECIFIED FORWORKING IN HINDI
Sections, notified for doing hundred per
cent work in Hindi, are working satisfactorily.
MONITORING AND INSPECTIONS
In order to ensure compliance of the
Official Language Policy, monitoring is done
through reviewing the quarterly progress reports
in the meetings of the Official Language
Implementation Committee etc. During the year,
two Sections and one Desk of the Ministry have
been inspected by the Officers with a view to
60
Hindi) in the Ministry of Small Scale Industries
and Agro and Rural Industries has already been
constituted. Quarterly meetings of these
committees were held and important decisions
taken regarding the use of Hindi in official work
to ensure compliance of these decisions and
follow up action.
HINDI MONTH
Hindi month was celebrated from 01
September and 30 September 2004 in the
Ministry. To encourage and motivate the
employees for doing maximum official work in
Hindi, various competitions in Hindi were
organized during this period. On the occasion
of Hindi Month, the messages of the Hon’ble
Home Minister and the Cabinet Secretary were
circulated to the officers / employees in the
Ministry and also to the officer-in-charge in the
Attached and Subordinate offices under the
Ministry for information and compliance.
During the Hindi month competitions in
Hindi typing, Hindi stenography, debate in Hindi,
Hindi essay and noting and drafting in Hindi
General Knowledge etc. were held and a large
number of officers and employees participated
in it with great enthusiasm.
ensure use of Hindi and compliance of the
Official Language Policy.
HINDI TRAINING
All officials of the Ministry have already
been trained in Hindi typing and Hindi
stenography. Ministry is already notified under
the Official Language Rule 10(4).
MECHANICAL AIDS
As per provisions of Official Language Act
bilingual mechanical facilities have been
provided on mechanical equipments in the
Ministry. Computers and terminals have also
been installed as per requirement and facility
to work in Hindi is also available on them.
COMMITTEES
To review the use of Hindi in the Ministry
and to give advise to accelerate the use of Hindi,
a Hindi Advisory Committee exists in the
Ministry.
Departmental Official Language
Implementation Committee under the
chairmanship of Joint Secretary (In-charge-
61
Chapter IX
VIGILANCE ACTIVITIES
The vigilance unit of the Ministry is
headed by a Chief Vigilance Officer(CVO) of
the rank of Joint Secretary appointed on the
advice of the Central Vigilance Commission
(CVC), who functions as the nodal point in the
vigilance set up of the Ministry. The secretariat
assistance to the CVO in the Ministry of ARI is
given by the Vigilance Desk of the Department
of Industrial Policy & Promotion (DIPP) as the
Ministry of ARI being a small Ministry does not
have its own independent vigilance unit. The
vigilance unit is, inter-alia, responsible for the
following in respect of Ministry of Agro and Rural
Industries (ARI) :
! identification of sensitive areas prone to
malpractices/temptation and taking
preventive measure to ensure integrity/
efficiency in Government functioning;
! taking suitable action to achieve the
targets fixed by the Department of
Personnel & Training (DoPT) on anti-
corruption measures;
! scrutiny of complaints and initiation of
appropriate investigation measures;
! inspections and follow-up action on the
same;
! furnishing the comments of the Ministry
to the CVC on the investigation reports
of the Central Bureau of Investigation
(CBI);
! taking appropriate action in respect of
departmental proceedings on the advice
of the CVC;
! obtaining second stage advice of the
CVC wherever necessary; and
! obtaining the advice of the Union Public
Service Commission(UPSC) in regard to
the nature and quantum of penalty to be
imposed wherever necessary.
I) COIR BOARD
The Coir Board, Kochi is a statutory body
under Ministry of ARI. The Vigilance work in
Coir Board, Kochi is looked after by a part-time
Chief Vigilance Officer appointed with the
concurrence of CVC.
II) KHADI AND VILLAGE INDUS-TRIES COMMISSION (KVIC)
The KVIC, Mumbai is a statutory
organisation under the Ministry of ARI. The
vigilance unit in KVIC is headed by a full-time
CVO appointed on the advice and concurrence
of CVC.
62
Preventive vigilance continues to receive
priority attention with emphasis on identification
of areas sensitive/ prone to malpractices and
temptation. The guidelines/instructions issued
by the DoPT and CVC from time to time in this
regard are followed. Action taken inter-alia
includes the following:-
i) Regular and surprise inspections are
being carried out by the Departmental
Security Officer of the Deptt. of IP&P as
a whole
ii) Strengthening of vigilance machinery by
way of appointment of CVOs in the offices
and organisation under the Ministry who
look after the vigilance activities in the
office/organization concerned. .
iii) A strict watch is being kept on liaison men
and on other persons. The departmental
security instructions are reiterated from
time to time for streamlining entry into the
building.
iv) As regards the identification of areas
which are corruption prone in the Ministry
of ARI, it may be stated that the Ministry
does not issue licences /registrations.
v) The cases of such of the officers who
have attained the age of 50 years or have
put in 30 years of service are reviewed
under FR 56 (j) in order to assess their
suitability to continue in service thereafter.
The exercise is currently being done by
the establishment division of the DIPP.
vi) Steps to put an end to the practice of
professional liaison men operating in the
Ministry have been initiated and a fresh
list of such unwanted liaison –men has
been prepared. And also the entry system
has been tightened and the enquiry-slip-
system has been revitalized.
vii) In order to make officers conscious of the
provisions of Conduct Rules, concerned
Rules/Instructions are reiterated from time
to time to them.
63
Chapter X
CITIZENS’ CHARTER
MINISTRY OF AGRO AND RURALINDUSTRIES
This Charter is a Declaration of the
Ministry of Agro & Rural Industries of the
Government of India incorporating policies,
missions, commitments particularly for agro &
rural entrepreneurs and for the people of India
in general.
OUR MISSION
Our Mission is to support the Village & cottage
Industries, tiny and micro enterprises in both
urban and rural areas and implementation of
Prime Minister’s Rozgar Yojana (PMRY) by way
of an advocacy role with the various
organization of Government, by way of being
provider of services to support ARI growth and
by the management of programmes through
Government and non-Government organi-
sations for the benefit of village and cottage
industries. Our object is to promote, aid and
foster growth of Village & cottage Industries,
tiny and micro enterprises by providing them
institutional support in the areas of marketing,
export, technology upgradation, training and
common facilities services. We aim at providing
prompt service to citizens through our field
agencies like KVIC/SIDO (Partly) so that the
growth of these sectors is enhanced, quality of
production is improved and more employment
opportunities are generated.
OUR VALUES
We are committed to efficient and prompt
service with transparency and courtesy in
dealing with citizens.
OUR COMMITMENT
The Ministry will be dutiful, disciplined and
will respect the right of entrepreneurs and
associations. The Ministry will maintain and
uphold the confidentiality of the personal and
business information disclosed to it by citizens.
To continuously review the provisions and
enforcement of laws and regulations in
consultation with associations and other groups
which help the units.
STANDARD FOR GENERALPROCEDURE
The correspondence, letters received by the
Ministry will be acknowledged in 15 days.
64
RESPONSIBILITIES OF OURCITIZENS
The Ministry expects continuous feed
back from citizens on the quality of the services
provided to them and on areas in which they
expect improvements.
ASSESSING OUR PERFORMANCE
The Ministry will share out performance
with citizens through the media. The Ministry
will hold independent surveys on citizenís
perceptions and assessment of our
performance.
GUIDANCE AND HELP
The Information and Facilitation Counter
of the Office of the Development
Commissioner (SSI) located on the Ground
Floor, Gate No.4, Nirman Bhavan, New Delhi
continues to provide information on the
services and activities of the Ministry and
related organizations in the area of tiny, agro
and rural industries and their growth. One can
visit the counter or make phone calls to it on
011-23019219.
COMPLAINTS
In case of any complaint, one may
telephone or send a letter or fax or visit our
office. However, before lodging such complaint,
one may, first of all, use the Information and
Facilitation Counter of the Ministry. In case, one
is not satisfied, they may take up the matter
with the Grievance officer in this Ministry. The
address, phone number and fax number of the
Information and Facilitation Counter and the
Grievance cell are:
I) Information and Facilitation Counter
Gate No.4, Ground Floor,
Nirman Bhavan, New Delhi-110 011.
Tel.No.23019219
II) Grievance Cell
Director, Ministry of ARI
Room No. 275-D, Udyog Bhavan,
New Delhi –110011
Tel. No.: 23794745