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