Financial Assistance to Artisans and Craft Persons

Ministry of Micro,Small & Medium Enterprises

Ministry of MSME is implementing the following schemes through Khadi and Village Industries Commission (KVIC) and Coir Board to provide financial assistance to artisans and craft persons in order to boost their profession and to provide a marketing platform:

Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi & Village Industries Board (KVIB) and District Industries Centre (DIC).  General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) has been under implementation since 2005-06 for making Traditional Industries more productive, market driven and competitive by organizing the Traditional Industries and artisans into clusters. The Scheme envisages providing need-based assistance for replacement of production equipment, setting up of Common Facility Centres (CFC), product development, quality improvement, improved marketing, training and capacity building etc. with the financial assistance extended by the Government.  The scheme was modified as revamped SFURTI scheme during 2016-17.

Khadi and Gramodyog Vikas Yojana (KGVY):By merging all the existing schemes/sub schemes/ components under Khadi Grant and Village Industries Grant umbrellas with new components into envisaged sub schemes of “Khadi Vikas Yojana” (KVY) and “Gramodyog Vikas Yojana” (GVY).

The “Khadi Vikas Yojana” (KVY) includes two new components such as (1) Rozgar Yukt Gaon, (2) Design House (DH) and existing schemes like (3) Market Promotion Development Programme (MPDA), (4) Interest Subsidy Eligibility Certificate (ISEC), (5) Khadi Reforms Development Programme (KRDP), (6) Workshed Scheme for Khadi Artisans, (7) Strengthening infrastructure of existing weak Khadi institutions and assistance for marketing infrastructure & (8) Khadi (S&T).

Gramodyog Vikas Yojana (GVY) – Promotion and development of the village industries through common facilities, Technological modernization, training etc other support and services for promotion of village Industries. GVY would have the following components:-

Research & Development and Product Innovation:- R&D support would be given to the institutions that intend to carry product development, new innovations, design development, product diversification processes etc. Engaging professionals and research/scientific institutions may carry out the product design development.

Activities of existing dedicated verticals of Village Industries are as follows:-

  1. Agro Based & Food Processing Industry (ABFPI)
  2. Mineral Based Industry (MBI)
  3. Wellness & Cosmetics Industry (WCI)
  4. Handmade Paper, Leather & Plastic Industry (HPLPI)
  5. Rural Engineering & New Technology Industry (RENTI)
  6. Service Industry

Capacity Building: Under the Human Resource Development and Skill Training components, exclusive capacity building of staff as well as the artisans would be adequately addressed through the existing MDTCs and institutions of excellence.

Marketing & Publicity: The V.I. institutions will be provided market support by way of preparation of product catalogue, Industry directory, market research, new marketing techniques, buyer seller meet, arranging exhibitions etc.

In addition to the above, KVIC is also implementing the following programmes for promotion and development of traditional industries viz. Beekeeping (Honey Mission) and Pottery Development Programme (Kumhar Sashaktikaran Programme):

Bee-Keeping (Honey Mission): KVIC launched Honey (Bee) Mission in July, 2017 for promoting Beekeeping and generating employment in the beekeeping potential States of the country.

Pottery Programme (Kumhar Sashaktikaran): Under this programme KVIC identifies the areas where clusters of traditional pottery workers are available and provides them training and electric pottery wheels and other tools like blunger, Pug Mill, etc.

Empowerment of Leather Artisans: In order to give employment and generate income of the leather artisans, KVIC has started Artisan Empowerment Leather Craft Programme during the current year 2019-20 with a target of 9800 artisans to be trained in the country and tool kits.

‘Skill Upgradation and Mahila Coir Yojana’ scheme: Skill Upgradation through Training & Extension:Development of skilled manpower in coir industry through appropriate training programmes is one of the major activities of Coir Board, which it imparts through its national level training institute viz. National Coir Training & Design Centre, Kalavoor, Kerala, Research cum Extension Centre, Thanjavur and Field Training Centres of Regional Offices/Sub-Regional Offices located at various parts of the country.  The Field Training Centres are run with the help of Co-operative Societies/Associations, SFURTI Clusters, etc. engaged in coir activities and NGOs registered with Darpan Portal of NITI Aayog. Most of the training programmes of the Board are offered with stipend facilities.

Mahila Coir Yojana (MCY) is a women oriented, self-employment scheme being implemented by Coir Board. The scheme envisages imparting training with stipend to women artisans on sophisticated machinery/advanced technology and scale up their skills.  The trained women artisans can avail of financial assistance (Maximum Project Cost- Rs.25.00 lakhs) for procurement of machinery/equipments under the PMEGP with necessary handholding support by the Coir Board through its field offices.

Marketing support provided by KVIC and Coir Board to Artisans and craft persons in order to boost their profession and to provide a marketing platform is given in the Annexure.

Annexure

KVIC provides the following Marketing support to:

  1. The artisans and entrepreneurs assisted and promoted by KVIC are eligible to sale their products through more than 8000 sales outlets run by the Khadi Institution, KVIC and KVIBs.
  2. KVIC also organizes National level and state level exhibitions where these entrepreneurs and artisans can sell and display their products.
  3. Selected entrepreneurs and artisans engaged in production of unique and quality products are also given financial assistance to participate in the International Exhibitions.
  4. Gift Coupons and Boxes which contribute significantly to sales of KVI products and give a well packaged product in the hands of buyers which create employment for the Khadi artisans.
  5. KVIC is in the process of introduction of Kulhad in Railways in nearly 400 outlets which will greatly increase the income of traditional artisans.
  6. Tie-up with Railways, Department of Posts, Air India, ONGC, IOCL and other Govt. organizations to market the products produced by the Khadi Institutions and entrepreneurs promoted by KVIC.
  7. As per gazette Notification of Govt. of India No. 503 dated 26.03.2012 “The Central Government Ministries, Departments and Public Sector Undertakings shall procure minimum 20% of their annual value of goods or services from Micro and Small Enterprises.”

Coir Board through its 29 showroom and sales depots in different parts of the country to popularize and market coir products manufactured by the artisans and craft persons of the coir industry.  It also undertakes various publicity and propaganda measures to popularize the use of coir products for various purposes.  Coir Board has been providing Market Development Assistance (MDA) for marketing coir products in the domestic market (financial subsidy) and External Market Development Assistance (EMDA) for export of coir products to overseas markets.

This information was given by Shri Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises in written reply to a question in Rajya Sabha today

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