Creation of Jobs by KVIC

The Ministry of MSME, through Khadi and Village Industries Commission (KVIC) promotes and assists Khadi and Village Industries which are engaged in production and sales of KVI products thereby generating employment opportunities for rural artisans through implementation of various schemes and programmes.

The cumulative employment generated by Khadi and Village Industries upto 31.03.2022 is given below:

Year

Cumulative Employment (in lakh persons)

Khadi

Village Industries

KVI

As on 31.03.2022 (Provisional)

4.97

162.63

167.60

 

The cumulative employment generated by Khadi and Village Industries in Maharashtra State upto 31.03.2022 is given below:

 

Year

Cumulative Employment in Maharashtra State

(in lakh persons)

Khadi

Village Industries

KVI

As on 31.03.2022 (Provisional)

0.03

11.65

11.68

Further, Ministry of MSME through KVIC is implementing Prime Minister’s Employment Generation Programme (PMEGP), which is a major credit-linked subsidy programme, aimed at generating self-employment opportunities for the rural and urban unemployed persons through establishment of micro-enterprises in non-farm sector, in the country including Parbhani District of Maharashtra. Banks provide the loan, and subsidy (also called Margin Money subsidy) is provided by the Government of India through KVIC.

Under PMEGP, general category beneficiaries can avail benefit 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 ST/SC/OBC/women/minorities/transgenders etc. the margin money subsidy is 35% in rural areas and 25% in urban areas. Beneficiary contribution is 10% (General Category) and 5% (Special Category). The maximum projects cost is Rs. 50 lakh in the manufacturing sector and Rs. 20 lakh in the service sector.

Performance of PMEGP scheme in Parbhani District during last three years is as follows:

 

Year

Project

(in numbers)

Margin Money released

(Rs. in lakh)

Employment

(in numbers)

2019-20

87

119.95

696

2020-21

41

66.42

328

2021-22

73

88.18

584

 The findings of a study conducted by KVIC to assess the impact of COVID-19 Pandemic on MSMEs, including units set up under PMEGP, is placed at Annexure-I.

 KVIC is not implementing any specific scheme of financial assistance to BPL artisans. However, BPL artisans who are not able to put in their own contribution, are provided training and tools & equipment under various programmes of Gramodyog Vikas Yojana, like Honey Mission, Kumbhar Sashaktikaran Programme, Pilot project on Agarbatti, etc.

 KVIC has taken many initiatives for promoting, developing and strengthening the rural traditional industries in the country and for employment generation.  Further, KVIC, through its training centres and through other promotional schemes conducts Skill Development Programme (SDP) and Entrepreneurship Awareness Programmes (EAP) in the country for unemployed youth to generate self-employment opportunities in traditional industries. Details of KVIC’s initiatives which are provided in Annexure-II.

Annexure-I

Study conducted by Khadi and Village Industries Commission (KVIC) to assess the impact of COVID-19 Pandemic on MSMEs including units set up under Prime Minister’s Employment Generation Programme (PMEGP).  The findings of the study are as under:

i.    88% of the beneficiaries of PMEGP scheme reported that they were negatively affected due to Covid-19 while the remaining 12% stated that they were benefitted during Covid-19 Pandemic.

ii.   Among the 88% who were affected, 57% stated that their units were shut down for some time during this period, while 30% reported drop in production and revenue.

iii.  Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.

iv.  On the question of regular payment of salaries to the employees, around 46.60% respondents stated that they had paid the salaries in full, 42.54% reported to have partially paid and 10.86% reported to have not paid salary for some time during this period. 

Annexure-II

Khadi and Village Industries Commission (KVIC) has taken following initiatives for promoting, developing and strengthening the rural traditional industries in the country and for employment generation:

 

  1. To supplement the income of farmers, Adivasis and unemployed youth of the country KVIC launched Honey Mission during 2017-18. Under Honey Mission, every person is provided 10 bee boxes with live bee hives.
  2. Under Kumbhar Sashaktikaran Programme, KVIC is uplifting rural pottery artisan’s livelihood by providing skill upgradation training and providing new home scale energy efficient equipment like electric pottery wheels, blunger, pug mill, kiln etc. for producing good quality of products.
  3. Considering the need of present generation and the effect of COVID-19 Pandemic, KVIC has started online selling of all KVI products. KVI products are available to every Indian’s door step through www.ekhadiindia.com and www.khadiindia.gov.in.
  4. Awareness camps, workshops, Bankers Meetings and exhibitions at all levels are being organized in order to propagate the KVI schemes for generation of employment opportunities.
  5. The “Khadi Prakritik Paint” was launched and KVIC has started the manufacturing of paint. Any individual can set up Khadi Prakritik Paint Unit under PMEGP Scheme.

This information was given by Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Lok Sabha.

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