Cover final - msmedihimachal.nic.in · 2 Annual Report 2005-2006 1.2.0 ORGANISATION OF THE MINISTRY The Ministry deals with the khadi and village and coir industries through the Khadi

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Annual Report2005-2006

Annual Report

Ministry of Agro andRural Industries

2005-2006

CONTENTS

CHAPTER PAGE NO.

1. OVERVIEW 01-11

2. KHADI AND VILLAGE INDUSTRIES SECTOR / KVIC 12-35

3. RURAL EMPLOYMENT GENERATION PROGRAMME (REGP) 36-48

4. COIR SECTOR / COIR BOARD 49-67

5. PRIME MINISTER’S ROZGAR YOJANA 68-80

6. ARI ACTIVITIES IN THE NE REGION 81-89

7. SUMMARY OF THE C&AG REPORT 90-93

8. USE OF OFFICIAL LANGUAGE 94-96

9. VIGILANCE ACTIVITIES 97-99

10. CITIZENS CHARTER 100-104

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OVERVIEW

1.1.0 BACKGROUND

Most people living in the rural areas of the country draw their

livelihood from agriculture and allied sectors. Accordingly, the

strategy of the Government has been to improve the economic

and social conditions of the underprivileged sections of the rural

population with emphasis on agricultural production and also

the non-farm sector to promote productive employment

opportunities, by integrating traditional production infrastructure,

skills and locally available raw material.

1.1.2 The rural non-farm sector in India has been growing in aggregate

size and increasingly contributing to rural income generation. The

growing pace of international trade and globalisation presents both

opportunities and challenges for the Indian economy, including

the small enterprises sector, which consists of small scale, agro &

rural industries and service/business entities.

1.1.3 Recognising that long-term development of Indian economy

depends critically on the effective exploitation of the productive

potential of the rural non-farm sector and development of village

industries, the Ministry of Agro and Rural Industries (ARI) was

set up in September, 2001. This was done with the objectives of

facilitating - co-ordinated and focused policy formulation and

effective implementation of programmes, projects, schemes, etc.,

for improving supply chain management, enhancing skills,

upgrading technology, expanding markets and capacity building

of the entrepreneurs/artisans and their groups/collectives.

Chapter

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1.2.0 ORGANISATION OF THE MINISTRY

The Ministry deals with the khadi and village and coir industries

through the Khadi and Village Industries Commission (KVIC)

and the Coir Board (CB) and coordinates implementation of

two countrywide employment generation programmes, namely,

the Rural Employment Generation Programme (REGP) and

the Prime Minister’s Rozgar Yojana (PMRY) with the co-

operation of State Governments, Reserve Bank of India (RBI)

and other banks.

1.3.0 KHADI AND VILLAGE INDUSTRIES COMMISSION

1.3.1 The Khadi & Village Industries Commission (KVIC),

established by an Act of Parliament, is a statutory organisation

engaged in promotion and development of 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 organisations in the

decentralised sector for generating sustainable rural non-farm

employment opportunities at low per capita investment. It

undertakes activities like skill improvement, transfer of

technology, research & development, marketing, etc., in the

process of generating employment/self-employment

opportunities in the rural areas.

1.3.2 KVIC has taken a number of steps for effect ively

implementing its schemes/programmes. These include

categorisation of institutions, improved raw material

management by optimising production of slivers/rovings in

its Central Sliver Plants (CSPs), introduction of product

development intervention scheme for quality and design

improvement of khadi and village industry products and

improved packaging, fostering backward-forward linkages

for successful implementation of REGP, increased marketing

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promotion efforts, enlarging the training network, introducing

better quality standards for village industries (VI) products,

increasing the productivity of the Khadi and Village Industries

(KVI) clusters through setting up of Common Facility Centres

(CFCs), etc.

1.3.3 The khadi and village industries sector makes a significant

contribution to the Indian economy. As per the data available,

KVIC was able to help generate 76.78 lakh employment

opportunities up to 2004-05 compared with the preceding year’s

level of 71.19 lakh, registering a growth of 7.85 per cent. In

village industries, employment increased significantly by 8.5

per cent while in khadi, the increase was only 0.5 per cent.

1.3.4 During 2004-05, khadi cloth worth Rs.461.54 crore was produced,

generating employment for 8.63 lakh persons. In the VI sector,

the achievement during 2004-05 in respect of production and

employment was Rs.10458.89 crore and 68.14 lakh persons

respectively. The performance in the KVI sector is as under:

(Value - Rs. crore)(Employment - lakh persons)

Year Production EmploymentKhadi V.I. Total Khadi V.I. TotalValue Value ValueRs. Rs. Rs.

2002-03 443.07 8126.30 8569.37 8.58 57.87 66.45

2003-04 451.93 9228.27 9680.20 8.61 62.57 71.18

2004-05 461.54 10458.89 10920.43 8.63 68.14 76.77

2005-06* 471.00 12193.00 12664.00 8.70 73.50 82.20

*Targets

1.3.5 During 2005-06, the khadi sector recorded production of Rs.

371.69 crore and provided employment to 8.69 lakh persons

up to January 2006. Similarly, the VI sector recorded production

of Rs. 8778.96 crore and provided employment to 71.47 lakh

persons up to January 2006.

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1.4.0 COIR BOARD

1.4.1 The coir industry is a labour-intensive and export-oriented

industry. It uses a by-product of coconut, namely, coir husk. The

Coir Board, a statutory body established under the Coir Industry

Act 1953, looks after the promotion, growth and development

of the coir industry, including export promotion and expansion

of the domestic market. The Coir Board implements a number

of schemes, which include assistance for participation in

exhibitions, training for skill development and assistance under

Mahila Coir Yojana, training, financial assistance for

modernisation of existing units, undertaking R&D activities, etc.

1.4.2 The estimated total turnover of coir and coir products in 2004-

05 was Rs. 1900 crore. About 6.06 lakh persons are engaged

in this industry. While the coir industry has deep roots in the

State of Kerala, it is now also spreading to other coconut growing

States like Tamil Nadu, Karnataka, Andhra Pradesh, Kerala,

Orissa, Tripura, Goa, etc.

1.4.3 Details of production of coir and coir products during the last

three years are as under:(Quantity -MTs)

Item 2002-03 2003-04 2004-05

Coir Fibre 3,53,700 3,64,000 4,30,000

Coir Yarn 2,26,800 2,32,500 2,80,000

Coir Products 75,750 77,900 98,000

Coir Rope 50,000 50,000 57,000

Curled Coir 28,000 29,500 38,000

Rubberised Coir 50,250 51,000 64,000

1.4.4 During 2004-2005, a total quantity of 122926.79 MTs valued at

Rs. 473.40 crore was exported, as against the total quantity of

1,02,253 MTs valued at Rs. 407.49 crore during 2003-04. The

exports during 2004-05 thus recorded a growth of 16.81 per

cent in quantity and 16.17 per cent in value over those during

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2003-04. This is the highest ever export figure for the coir

industry. During 2005-06 (up to January 2006), as per

provisional estimates, a total quantity of 108041 MTs of coir

and coir products valued at Rs. 406.27 crore were exported as

against 98333 MTs valued at Rs. 394.22 crore exported during

the same period of 2004-05.

1.5.0 EMPLOYMENT GENERATION SCHEME BEINGIMPLEMENTED BY THE MINISTRY

1.5.1 The Ministry of Agro and Rural Industries (ARI) implements

two nation-wise employment generation programmes, namely,

Rural Employment Generation Programme (REGP) and Prime

Minister’s Rozgar Yojana (PMRY). Both these programmes are

credit-linked subsidy schemes which are implemented through

commercial banks. While the REGP is implemented by the

KVIC, the PMRY is implemented by the State Governments

through the District Industries Centres (DICs). Recognising the

importance of village industries, the Planning Commission has

earmarked a target of generating 41.5 lakh additional

employment opportunities during the 10th Five Year Plan.

1.5.2 Under the Rural Employment Generation Programme

(REGP), implemented by the KVIC, capital subsidy in the form

of margin money is provided for setting up labour-intensive

village industries in rural areas and small towns with population

up to 20,000. The objective of this programme is to provide

productive employment to the people in these areas, thereby

also help reduce migration from the rural to urban areas.

1.5.3 Under the REGP, 2,09,705 units have been set up and 28.06

lakh additional job opportunities created since its inception in

1995 up to March 2005. Of these, approximately 12.4 per cent

of the projects have benefited persons from the scheduled

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castes, 5.7 per cent from the scheduled tribes and 23.8 per

cent from the OBC. The percentage of women entrepreneurs

securing gainful employment under the programme is about

25.8 per cent. During 2004-05, against the target of 5.25 lakh

under the REGP, 5.30 lakh employment opportunities were

generated, thus recording a 12.5 per cent growth as compared

with that during 2003-04 (4.71 lakh against the target of

generating 5 lakh job opportunities). During 2005-06 (up to

January 2006), 14808 projects have already been set up,

generating 3.33 lakh additional employment opportunities, as

against the target of creation of 5.50 lakh.

1.5.4 Prime Minister’s Rozgar Yojana (PMRY) was started in

1993 with the objective of making available institutional

finance to the educated unemployed youth for setting up

self employment ventures for all economically viable activities

and creating new employment opportunities in both rural and

urban areas of the country. A number of modifications have

been made in this scheme since its beginning in 1993 to

make it more effective. These include increase in the upper

age limit from 35 years to 45 years for SCs/STs, ex-

Minister of SSI & ARI Shri Mahabir Prasad, reviewing the progressof the KVI programmes at Mumbai.

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servicemen, women and physically disabled persons,

reducing the minimum educational qualifications, enhancing

the annual family income ceiling and project size of industry

and service projects, relaxation of residency criteria for

married women applicants, enhancing subsidy for

beneficiaries of the N.E. States, etc.

1.5.5 Under the PMRY, loans have been disbursed to 22.80 lakh

self-employment ventures since its inception to 31 March 2005,

leading to estimated employment generation for 34.20 lakh

persons. Of these, 15.37 per cent were from the SCs and STs,

20.33 per cent from the OBCs and about 12 per cent from

women. As per the data made available by the RBI, there was

significant improvement in the implementation of the yojana in

2004-05 as compared with that during 2003-04. Thus, while

an estimated 3.29 lakh employment opportunities were

generated during 2003-04, in the year 2004-05 (up to November

2005) an estimated 3.56 lakh such opportunities were

generated. The final figure is likely to be higher. As per the

latest information received from the RBI, during 2005-06 (up to

November 2005), 99204 cases have been sanctioned, of which

loans have been disbursed in 56812 cases.

1.6.0 TENTH PLAN OUTLAY

1.6.1 The total Tenth Plan outlay for the Ministry of Agro and Rural

Industries is Rs. 2950 crore. During first three years of the Tenth

Plan, an expenditure of Rs. 1186.03 crore was incurred and

Rs. 871.52 crore have allocated for 2005-06, at the Revised

Estimates (RE) stage. During 2004-05, against the Plan budget

provision of Rs. 700 crore (RE) for the Ministry, an amount of

Rs. 695.98 crore (99.4 per cent) was utilised. This is the highest

percentage utilisation recorded in any year since the beginning

of the Tenth Plan. Further, Plan outlay of Rs. 967 crore has

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been approved in the Budget Estimates (BE), 2006-07. Thus

the actual outlay for the Tenth Plan would finally be more than

what was envisaged at the beginning.

1.6.2 A summary of the outlays and actual utilization of Plan funds is

given below:(Rs. crore)

Sr. Name of the Tenth Plan 2002-03 2003-04 2004-05 2005-06 2006-07No. Organisation/ (2002-07) (actual) (actual) (actual) (RE) (BE)

Scheme

1. KVIC 2080.00 340.55 423.60 460.99 560.82 592.93

2. Coir Board 115.00 13.77 14.52 16.80 35.51 23.00

3. PMRY 755.00 168.10 168.01 218.19 273.69 325.10

4. Others –Scheme of - - - 1.50 25.97Fund forRegenerationof TraditionalIndustries(SFURTI)

Total 2950.00 522.42 606.13 695.98 871.52 967.00

1.7.0 NATIONAL COMMON MINIMUM PROGRAMME(NCMP)

1.7.1 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. The

Government has taken the following initiatives for fulfilment of

these NCMP declarations:

1.7.2 REVAMPING OF THE KHADI AND VILLAGEINDUSTRIES COMMISSION

Considering the steep decline in employment in the khadi sector

and also the declaration made in the National Common

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Minimum Programme (NCMP) to revamp KVIC, the

Government dissolved the Commission in October 2004 and

constituted a ten-member Expert Committee (EC) in December

2004 to recommend suitable measures for its revamping, after

reviewing the structure, functioning and performance of the

KVIC in the existing Act. This Committee submitted its report

in April 2005.

After carefully considering the recommendations of the EC,

the Government introduced the Khadi and Village Industries

Commission (Amendment) Bill, 2005 in Lok Sabha on

22.08.2005 to suitably amend the existing Khadi and Village

Industries Commission Act, 1956, so that the statutory

provisions governing the organisational structure and functions

of the KVIC could be made more professional and in keeping

the present requirements. The Bill was referred to the

Department-Related Parliamentary Standing Committee

(DRPSC) on Industry for examination and report. The DRPSC

submitted its report to Parliament on 13 December 2005.

The KVIC (Amendment) Bill, 2005 was considered and passed

by the Lok Sabha on 27 February 2006 alongwith the official

amendments (based on the accepted recommendations of the

DRPSC). The Rajya Sabha considered and passed the Bill on

11 March 2006.

1.7.3 SCHEME OF FUND FOR REGENERATION OFTRADITIONAL INDUSTRIES (SFURTI)

In pursuance of the NCMP declaration and the announcement

of Finance Minister in his Budget speech of July 2004, the

Government has approved a scheme titled the “Scheme of Fund

for Regeneration of Traditional Industries” (SFURTI), for the

integrated development of traditional clusters of khadi, coir and

village industries, including leather and pottery. It is proposed

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His Excellency President of India Shri APJ Abdul Kalam presenting Awards for2004-05 at National Award function held at New Delhi on 28th Oct. 2005

to take up development of hundred clusters (25 khadi, 50 village

industries and 25 coir) over the next five years (beginning 2005-

06). For implementation of the scheme, a detailed office

memorandum has been issued on 03.10.2005. The Nodal

Agencies (KVIC and Coir Board) have been requested to submit

proposals to the Ministry for development of clusters under

SFURTI. So, far 50 cluster development proposals (khadi 25,

village industries 9 and coir 16) have been received. These

proposals are being considered by the Ministry.

1.8.0 DISTRIBUTION OF AWARDS TO THE BESTPERFORMING KHADI AND VILLAGEINDUSTRIES INSTITUTIONS, SMALL-SCALEINDUSTRIES AND COIR INDUSTRIES

The annual National Convention on Small, Agro and Rural

Industries and Award Ceremony, 2005 was held at Hotel

Ashoka, New Delhi on 28 October 2005. His Excellency Shri.

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A.P.J. Abdul Kalam, President of India, distributed 96 awards

to the best performing khadi and village industries institutions,

small-scale industries and coir industries. This was the first

composite National Convention for small scale and agro and

rural industries.

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KHADI AND VILLAGE INDUSTRIESSECTOR / KVIC

2.1.0 INTRODUCTION

2.1.1 The Khadi & Village Industries Commission (KVIC) 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.

2.1.2 It took over the activities from the erstwhile All India Khadi and

Village Industries Board on 01 April 1957.

2.1.3 The KVIC has been identif ied as one of the major

organisations in the decentralised sector for generating non-

farm employment opportunities in the rural areas at low per

capita investment.

2.2.0 MAIN OBJECTIVES

2.2.1 The KVIC through its programems and policies seeking to

achieve following 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.

Chapter

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2.3.0 FUNCTIONS

The functions of KVIC as prescribed under the KVIC Act,

1956 (No. 61 of 1956) and Rules made thereunder are as

follows:

(i) to plan and organise training of persons employed or

desirous of seeking employment in khadi and village

industries;

(ii) 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;

(iii) 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;

(iv) to promote the sale of khadi or products of village

industries or handicrafts and for this purpose forge links

with established marketing agencies wherever necessary

and feasible;

(v) 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;

(vi) to undertake directly or through other agencies studies

of the problems of khadi or village industries;

(vii) to provide financial assistance to institutions or persons

engaged in the development and operation of khadi or

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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;

(viii) to undertake experiments or pilot projects which in the

opinion of the Commission are necessary for the

development of khadi and village industries;

(ix) to establish and maintain separate organisations 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;

(x) 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, including issue of

certificates or letters of recognition to the concerned

persons; and

(xi) to carry out any other matter incidental to the above.

2.4.0 ORGANISATIONAL SET UP

2.4.1 The Central Office of the KVIC is at Mumbai with one Zonal

Office at Guwahati and 29 State Offices. Functional directorates

have been constituted to coordinate the functions like training,

marketing, accounts, khadi, economic research, Rural

Employment Generation Programme, etc.

2.4.2 The KVIC also undertakes training activities through its 43

departmental and non-departmental training centers. Marketing

is taken up through its 12 departmentally run Khadi Gramodyog

Bhawans and 7050 institutional sales outlets located in different

part of the country. Six sliver plants provided quality raw material

to khadi institutions.

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2.5.0 IMPLEMENTING AGENCIES

2.5.1 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 banks, their

regional rural banks and a few selected cooperative banks.

2.5.2 The Khadi programme is implemented through institutions

registered either with the KVIC or the State KVIBs.

2.5.3 In the case of village industries, the KVIC implements the Rural

Employment Generation Programme (REGP).

2.6.0 GROUP OF INDUSTRIES

2.6.1 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:

(i) Mineral Based Industry;

(ii) Forest Based Industry;

(iii) Agro and Rural Industry;

(iv) Polymer and Chemical Based Industry;

(v) Rural Engineering and Bio Technology;

(vi) Hand Made Paper & Fibre Industry;

(vii) Service Industry.

2.6.2 Industries 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,

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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.

2.7.0 BUDGETARY SUPPORT TO KVIC

2.7.1 The Government of India provides funds for the activities of

the KVIC under Plan and Non-Plan heads,.

2.7.2 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 implementing banks, etc. The Commission’s

administrative expenditure including pension payment, is met

out of Government budgetary support.

2.7.3 The details of funds provided from Budgetary Source (both under

Plan and Non-plan) during the 10th plan period are as under:(Rs. crore)

BUDGET

YEAR ALLOCATION (RE) FUND RELEASED

Plan Non- Plan Plan Non- Plan

2002-2003 394.67 84.87 340.55 83.36

2003-2004 444.75 83.75 423.60 63.70

2004-2005 462.00 84.91 695.98 83.90

2005-2006 560.82 84.82 475.95 68.93

2006-2007 592.93 84.82 - -

* Released as on 31 January 2006

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2.8.0 PHYSICAL PERFORMANCE OF THE KVI SECTOR

2.8.1 The KVI sector recorded an improved performance during 2004-

05 in comparison to the previous year. There was a growth of

1.77 per cent in terms of value of production and 5.24 per cent

in terms of sales in the khadi sector while the growth in terms

of value of production and sales have been 13.33 per cent and

13.64 per cent, respectively in the VI sector.

Minister of SSI & ARI Shri Mahabir Prasad, interacting with the officialsof KVIC / State Govt. Officials.

A view of deliberations of the Departmental Related ParliamentaryStanding Committee on Industry

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2.8.2 Thus the total KVI production (current prices, as estimated by

KVIC) stood at Rs. 10920.43 crore in 2004-2005 as against

Rs. 9681.77 crore in 2003-2004, reflecting an increase of 12.79

per cent. Similarly, sales of KVI products increased to

Rs.13105.19 crore as compared to Rs. 11575.21 crore,

registering a growth of 13.22 per cent during 2004-05.

2.8.3 The total employment in the KVI sector is estimated to have

increased to 76.78 lakh in 2004-2005 as against the previous

year’s level of 71.19 lakh, registering a growth of 7.85 per cent.

2.8.4 The total KVI production during 2005-06 (up to January 2006)

is estimated at Rs. 9150.65 crore as compared to Rs. 8461.49

crore in 2004-05 (up to January 2006), registering a growth of

8.14 per cent. Sales increased to Rs. 11140.76 crore in 2004-

05 (up to January 2006) as compared with Rs. 10,982.05 crore

during the corresponding period of 2004-05, reflecting a growth

of 1.4 per cent.

2.8.5 Total employment in KVI sector is estimated to have increased

to 80.16 lakh in 2005-2006 (up to January 2006) as compared

with 74.01 lakh persons during the corresponding period of

2004-05, registering a growth of 8.3 per cent.

2.9.0 MAJOR SCHEMES BEING IMPLEMENTED BYKVIC

2.9.1 RURAL EMPLOYMENT GENERATIONPROGRAMME

The Rural Employment Generation Programme(REGP), is

implemented by the KVIC to generate more employment

opportunities in rural areas, thereby reducing the rural - urban

migration. Under REGP capital subsidy in the form of margin

money is provided for setting up labour-intensive projects in

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rural areas as well as in small towns with population up to

20,000. Details of the REGP are given in Chapter III.

2.9.2 INTEREST SUBSIDY ELIGIBILITY CERTIFICATION(ISEC) SCHEME

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is

the major source of funding for the 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.

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.

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 provided under the VI

grant head.

The Institutions were able to improve their credit situation during

the year under report. The credit flow to the institutions under

the scheme during 2002-03 to 2004-05 were Rs. 329.73 crore,

Rs. 362.70 crore and Rs. 278.74 crore and subsidy provided

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by the Government through KVIC were Rs. 21.99 crore,

Rs. 18.77 crore and Rs. 26.09 crore respectively. Interest

Subsidy Eligibility Certificates worth Rs. 469.01crore have been

issued up to January 2006 to meet part of their working capital

requirement during 2005-06.

2.9.3 REBATE SCHEME

Rebate on sales of khadi and khadi products is made available

by the Government 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

from funds available through budgetary support of the Ministry

of ARI under the Khadi Grant head.

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.

Under Rebate Scheme, the KVIC during the years 2002-03,

2003-04 and 2004-05 released Rs. 111.84 crore, Rs. 81.99 crore

and Rs. 81.18 crore respectively. In the year 2005-06, Rs. 76.81

crore has already been released towards rebate till January 2006.

2.9.4 PRODUCT DEVELOPMENT, DESIGNINTERVENTION 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. The scheme envisages

improvement in product quality, introducing new designs and

better packaging of products.

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The scheme has gained acceptance as would be evident

from the progress achieved so far. During 2003-04 and 2004-

05, 121 projects and 69 projects were sanctioned under

PRODIP. During 2005-06, a target of 195 projects has been

set up under PRODIP against which 177 projects have also

been sanctioned under KVI Sector till January 2006.

Secretary (SSI & AIR) Shri Anupam Dasgupta having a view of new & innovativeproducts displayed by artisans / REGP entrepreneurs

Products by REGP entrepreneurs

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2.9.5 RURAL INDUSTRIES SERVICE CENTERS (RISC)

The KVIC is implementing the Rural Industries Service Centers

(RISC) Scheme from 2004-05 onwards to provide infrastructural

support and services to units to upgrade their production

capacity, skill upgradation and market promotion. RISC inter

alia provides for:

• testing facilities by establishing laboratory to ensure

quality of the products.

• 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

• attractive and appropriate packaging facilities and

machineries to the local units/artisans for better marketing

of their products.

• training facilities to upgrade artisans’ skills in order to

increase their earnings.

• new design or new product, diversified product in

consultation with experts /agencies for a value addition

of rural manufacturing units.

This scheme 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 rural

industries.

Under this scheme, financial assistance for establishing

projects up to Rs.5 lakh is provided to KVI units. Each RISC

programme up to Rs.5 lakh should provide benefit to 25

individuals.

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Under the RISC programme, 3 projects have been

sanctioned for which Rs. 15.00 lakh have been released by

the KVIC to its implementing agencies by the end of January

2006.

2.9.6 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 with effect from 15 August 2003. Under this

scheme, about 3.90 lakh artisans are to be covered during

10th Plan period.

This scheme has been formulated by Life Insurance 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 due to accident : Rs. 50,000/-

Part permanent disability due to accident : Rs. 25,000/-

2.34 lakh khadi artisans have already been covered under this

scheme by December 2005.

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.

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2.10.0 QUALITY CONTROL IN KHADI

2.10.1 In order to increase the appeal of Khadi while maintaining its

handcrafted quality, KVIC had a tie-up 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

characteristics 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.

2.10.2 The Memorandum of Understanding (MOU) signed between

KVIC and the Textiles Committee, a statutory body under

Ministry of Textiles has been continued in 2004-05. Under the

MoU, facilities of their 13 laboratories situated across the

country are being used for testing khadi and polyvastra. During

2004-05, 1500 khadi institutions took the benefit of this

arrangement and about 2000 cloth samples were tested on

cost sharing basis as 75 per cent of testing charges borne by

the KVIC and 25 per cent by the khadi institutions. Under the

arrangement, the quality of khadi would receive a fillip thus

further increasing its marketability.

2.11.0 EXHIBITIONS

Apart from promoting sales through a network of Khadi

Gramodyog Bhavans, effort has also been made to organise a

number of exhibitions, conducted in different parts of the

country. Exhibitions considered as a cost effective publicity and

market promotion instrument. In 2004-05, special efforts were

made to oragnise such exhibitions in different places and 229

exhibitions have been organised in various parts of the country

in 2004-05. During 2005-06 under report KVIC has already

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organised 62 exhibitions (up to January 2006) in various parts

of the country.

2.12.0 GOVERNMENT SUPPLY

2.12.1 The KVIC has been executing supply of its products under Rate

Contract of Director General of Supplies and Disposal (DGS

&D) to various Government Departments/Agencies.

2.12.2 Based on DGS&D rate contract, items like dasuti khadi, dungari

cloth, dusters, long cloth, bunting cloth and sheeting cloth, etc.,

are being supplied to Government Agencies and bed rolls,

curtains, pillow covers, kulhars, etc. to Railways. In 2004-05

supplies worth Rs. 22.03 crore were made under DGS&D.

During 2005-06 (up to January 2006), supply worth Rs. 11.51

crore has already been made.

2.12.3 During 2005-06 (up to January 2006), KVIC has received orders

of khadi/polyvastra bed-sheets worth Rs. 3.26 crore from

Railway. Against this, bed sheets worth Rs. 1.86 crore have

already been supplied.

2.13.0 RESEARCH AND DEVELOPMENT

2.13.1 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 the S&T

programme are:

(i) Increase in productivity,

(ii) Increase in wages,

(iii) Improvement in quality

(iv) Efficient use of local skills and local raw materials,

(v) Reduction of human drudgery

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2.13.2 EXISTING INFRASTRUCTURE

The following institutions exist in KVI Sector:

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 Institute (KNHPI), Sanganer, Jaipur, Central

Village Pottery Institute (CVPI), Khanapur, Karnataka, Khadi

Gramodyog Prayog Samiti (KGPS), Ahmedabad.

2.13.3 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 MGIRI is being carried out

by IIT, Delhi. The Planning Commission has already given “in

principle” approval to the proposal and the meeting for

consideration of this proposal would be held shortly.

2.13.4 MOU WITH TECHNICAL INTERFACE INSTITUTES

2.13.4.1 The KVIC has built up a large network 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

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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, KVIC has set up Technical Back

Up Units which will provide S&T inputs to the

entrepreneurs engaged in KVI activities.

2.13.4.2 The KVIC has also undertaken certain activities in

various outsourcing interfaces at Engineering and

Technological institutes of repute to meet perceived

needs to make the products more marketable either

through design interventions or quality assurance

system. These are:

(i) Vishweshwarayya National Institute of Technology

(VNIT), Nagpur

(ii) Birla Institute of Technology (BIT), Ranchi

(iii) North Eastern Region Institute of Science and

Technology (NERIST)

A view of signing ceremony of MOU’s with technical institutions

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(iv) College of Technology and Engineering (CTAE)

Udaipur.

(v) Indian Institute of Science (IISc), Bangalore

(vi) Indian Institute of Technology (IIT) Roorkee

(vii) National Institute of Technology(NIT) Rourkela

(viii) Indian Institute of Technolgoy, Delhi

(ix) Indian Institute of Technology(IIT), Kanpur

(x) Indian Institute of Technology (IIT), Mumbai

(xi) Indian Institute of Technology(IIT), Guwahati

(xii) National Institute of Tehnology(NIT), Calicut

(xiii) Quality Implementation Programme.

2.13.5 RURAL INDUSTRIES CONSULTANCY SERVICE(RICS)

2.13.5.1 The KVIC launched a Rural Industries Consultancy

Service (RICS) in order to help the potential

entrepreneurs for providing guidance for technical

and managerial support to the prospective

entrepreneurs which includes preparation of

projects, Liaison with banks/other agencies/

organisation/local authorities in respect of the

project, assistance and support to implement the

project, procurement of raw materials, machineries,

installation, etc., quality control for acceptability and

reliability, packaging and design for better

marketing, marketing support for sustainability of

the unit, etc.

2.13.5.2 As on 31 March 2005, 49 such RICS have been

opened in various parts of the country and another

25 are under process.

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2.14.0 OTHER INITIATIVES

2.14.1 CATEGORISATION OF INSTITUTIONS

To streamline the payment of rebate, release of interest subsidy,

supply of raw materials, etc., khadi institutions are categorized

as A+, A, B, C and D on the basis of their production, sales,

marketing, etc. As on January 2006, the break up of 1860

categorised khadi institutions is as under:

S.No. Type A+ A B C D Total

1. Affiliated to KVIC 106 285 318 302 224 1235

2. Affiliated to State

Boards 26 158 171 219 51 625

Grand Total 132 443 489 521 275 1860

2.14.2 KHADI ARTISANS WELFARE TRUST FUND(KAWTF)

The KAWTF is conceptually meant to run on the lines of a

provident fund. Membership is mandatory for all khadi and

polyvastra producing institutions affiliated to KVIC and State

KVIBs. Institutions categorized as A+, A, B and C are eligible

to join the trusts. During the year 2004-05, 21 states have been

covered under these trusts mobilizing the contributions of

artisans and the institutions to the tune of Rs.171.25 lakh.

Cumulatively the credit to the trusts added up to Rs.2359.00

lakh up to 31.3.2005. KVIC has provided Rs.30.03 lakh as on

31 March 2005 as grants to the ‘trust’ to meet part of the

administrative expenditure.

2.14.3 NATIONAL FLAG PRODUCTION CENTRE

Khadi is the pride and joy of our nation and can be easily

understood from the fact that the Bureau of Indian Standards

(BIS) gave it the first place in 15 specification by way of national

flag specification. As per BIS, khadi is the only fabric that is used

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for production of India’s national flag. One national flag production

project has been started in consultation with South Indian Textile

Research Association (SITRA) at Karnataka Khadi Gramodyog

Samyukta Sangh, an NGO of KVIC at Bengeri, Hubli (Karnataka)

at an estimated cost of Rs. 51.10 lakh. The first phase of the

project was commissioned during 2004-05. BIS completed

necessary formalities for giving the project clearance on

specifications. The project would be fully commissioned in 2006-

07 and would produce 5000 flags per day in different sizes.

2.14.4 MISSION PROJECT FOR PRODUCTION OF“READY TO USE KHADI”.

The KVIC has initiated a Ready to Use Mission for khadi products.

Under the scheme, a major khadi institution will work as a lead

institution where all modern facilities for production of garments

including covering, designing, finishing, packaging, etc., will be

installed. Other institutions (at least 9) working in the nearby

area will be associated in a concentric manner with the activities

of the lead institution. As a result, all of them will be able to

upgrade their product quality by sharing their experiences and

common facilities installed at the lead institution. National Institute

of Fashion Technology is the technical consultant for the projects

being set up under the scheme. KVIC has identified 5 mission

projects for production of “Ready to use Khadi” in the country.

During the year under report, 2 projects at Murshidabad (West

Bengal) and Padiyur (Tamil Nadu) at a cost of Rs. 57.50 lakh

each have already been started. NIFT Kolkata & Chennai have

been enlisted to provide hand-holding support in the areas of

design inputs, training, etc.

2.14.5 CENTRAL SLIVER PLANTS

2.14.5.1 As a step towards improving the quality of raw

material and in order to enable the khadi institions

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to access these sources of quality raw material,

KVIC continued to operate its 6 CSPs at Kuttur,

Chitradurga, Sehore, Raibareilly, Etah and

Hajipur. During the year 2004-05, the khadi

institutions purchased slivers/rovings from these

plants to the extent of 22.66 lakh kgs valued at

Rs. 22.03 crore.

2.14.5.2 During the year 2005-06 up to December 2005,

17.51 lakh kgs of sliver amounting to Rs.15.60 crore

was produced in 6 Central Sliver Plants and 16.66

lakh kgs of sliver worth Rs.14.92 crore supplied to

khadi institutions.

2.14.6 SETTING UP OF RAW MATERIAL GODOWNS

In order to facilitate continuous offtake of slivers/rovings by khadi

institutions faced with resource crunch, the KVIC operated local

godowns during the year 2004-05. At the end of 31.3.2005,

the following 8 local raw material godowns provided the above

service:

1. Dausa – Rajasthan.

2. Nanded – Maharashtra.

3. Surendranagar – Gujarat.

4. Bijnour - Uttar Pradesh.

5. Wavilal - Andhra Pradesh.

6. Metapalli, Karimnagar - Andhra Pradesh.

7. Sangaralingapuram - Tamil Nadu.

8. Murshidabad - West Bengal.

2.14.7 PEOPLE EDUCATION PROGRAMME (PEP)

As a part of its publicity programme aimed at informing the

people through direct interaction between the KVIC on the one

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hand and people on the other, the KVIC during the year under

report, held 175 PEP events at the field level. Besides

dissemination of the policies and schemes of the KVIC on rural

industrialization, essay competition, debate and seminars drew

a good deal of participation from academic institutions, students

Panchyati Raj Institutions, NGO’s, etc. on issues of topical

interest concerning Khadi and Village Industries. The KVIC

provides financial assistance for the purpose through budgetary

allocation.

2.14.8 MOU WITH ITC LTD.

An MoU signed between KVIC and ITC Ltd. (Agarbatti

Division) envisages marketing of “MANGLDEEP” Agarbatti

manufactured by khadi and village industry units. The MoU

envisages (i) one of the manufacturing units functioning as

the nodal agency for quality assurance, perfuming and

packaging of the product in accordance with ITC’s

specifications and (ii) ITC buying the entire produce of

agarbatties from these KVI units and undertaking their

marketing through its own outlets and the outlets in KVI sector.

It is expected that this MoU would be beneficial to the KVI

units concerned by assured offtake of the product, additional

marketing channels becoming available to the KVI units,

promotion of the product as a distinct brand, expansion of

production base resulting in employment generation a

sustainable basis in the rural areas, etc.

2.14.9 CREDIT GUARANTEE TRUST FUND FOR SMALLINDUSTRIES (CGTSI)

Credit Guarantee Trust Fund for Small Industries (CGTSI)

approved extension of the credit guarantee of loans advanced

by banks under the KVIC/REGP schemes under its Credit

Guarantee Fund Scheme.

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2.14.10 SYSTEM FOR PROGRAMME ANALYSIS ANDREPORTING FOR KVIC (SPARK)

The SPARK (System for Programme Analysis and Reporting

for KVIC) software has been developed by KVIC for data

collection and documentation of programmes being

implemented by it. This will facilitate better analysis of

programmes being implemented by KVIC for making KVI

programmes more effective with its target group.

2.15.0 REVAMPING OF KHADI AND VILLAGEINDUSTRIES COMMISSION

2.15.1 In the National Common Minimum Programme, the

Government has declared to revamp the Khadi and Village

Industries Commission (KVIC). This has been necessitated

because of the steep decline in employment in the khadi sector,

nearly stagnant sales of khadi over the years, the need to take

effective measures to introduce modern management practices

in the KVIC and to make khadi and village industry products

competitive in the globalised economy. Towards this objective,

the Government dissolved the KVIC on 14 October 2004 and

constituted a ten-member Expert Committee on 01 December

2004 to review the existing structure, functioning and

performance, etc., of the KVIC and recommend suitable

measures for its revamping. The Expert Committee submitted

its report on 06 April 2005.

2.15.2. Among other things, the Expert Committee recommended

amendments to the KVIC Act, 1956, mainly with regard to

change in the composition of the Commission, provision of

a consultative mechanism at the zonal level, provision for

reconstitut ion of the Commission after dissolution,

redefinition of the powers of Chief Executive Officer (CEO),

KVIC, etc.

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2.15.3 To give effect to the accepted recommendations of the Expert

Committee, a Bill was introduced in the Lok Sabha on 22 August

2005 to amend the existing Khadi and Village Industries

Commission (KVIC) Act, 1956 after it was approved by the

Cabinet at its meeting of 04 August 2005.

2.15.4 The said Bill was referred to Department-Related Parliamentary

Standing Committee (DRPSC) on Industry for examination and

report. The DRPSC submitted its report on 13 December 2005.

Of the fourteen clauses in the Bill, the Committee recommended

amendments to four clauses and adopted the remaining clauses

without any change. These recommendations of the DRPSC

were accepted with minor changes and were passed by both

Houses of Parliament in February – March 2006.

2.15.5 The KVIC (Amendment) Bill, 2005, as passed by both Houses

of Parliament, seeks to-

(a) amend the existing fixed capital investment per head of

an artisan or a worker under the definition of “village

industry” from “fifteen thousand rupees” to “one lakh

rupees” ;

(b) raise the fixed capital investment limit per head of an

artisan or a worker to the tune of rupees one lakh fifty

thousand for hilly areas and raising the population limit

for small town to twenty thousand in the definition of “rural

areas”;

(c) provide for requirement of ten years of experience in

appropriate fields for appointment as a member of the

Commission and also widen the fields of expertise for

appointment as a member of the Commission;

(d) provide for four non-official expert members in the Khadi

and Village Industries Commission for enhancing

professional expertise in relevant fields;

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(e) make specific provisions for clearer demarcation of the

functions and powers among the Commission, the Chief

Executive Officer of the Commission and the Financial

Adviser of the Commission ;

(f) rename the Khadi and Village Industries Board under the

KVIC Act, as “National Khadi and Village Industries Board”

and provide for regular meetings of the Board ;

(g) confer voting rights on the ex-officio members of the

Commission;

(h) provide for constitution of Zonal Committees, its functions

and meetings;

(i) clarify that the Chairman and members of the Commission

shall hold office at the pleasure of the Central Government

which shall not exceed a continuous period of five years

as such in the Commission;

(j) make specific provisions for undertaking certain functions

by the Commission through specified agencies; and

(k) confer powers on the Central Government to re-establish

the Commission after its dissolution.

2.15.6 These suggested changes will not alter the basic objectives,

powers and functions of the KVIC in the existing Act. In fact, it

is expected that with these proposed changes, the KVIC will

become more professional and relevant in time to come and

shall be better equipped in the discharge of its key role in

facilitating generation of sustainable and wide-spread

employment in the rural areas of the country.

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RURAL EMPLOYMENT GENERATIONPROGRAMME (REGP)

3.1.0 INTRODUCTION

The KVIC launched the Rural Employment Generation

Programme (REGP) on 01 April 1995.

3.2.0 MAIN OBJECTIVES

The main objectives of REGP are as under:

• To generate employment in rural areas.

• To develop entrepreneurial skills and aptitude among

rural unemployed youth.

• To achieve the goal of rural industrialization.

• To facilitate participation of banks in the village industries

sector so as to ensure higher credit flow to these

industries.

3.3.0 SALIENT FEATURES OF REGP

• 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.

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• Partnership firms private/public limited companies, joint

ventures, joint borrowers, co-obligators of HUF are not

eligible.

• The permissible margin money assistance is as detailed

in the table below:

• 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

contribution 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.

Margin Money Assistance under REGP

S. Category of Project cost Margin moneyNo. beneficiary assistance1. General Up to Rs. 10 lakh 25 per cent of project cost

Above Rs. 10 lakh Rs. 2.5 lakh plus 10 perand up to Rs. 25 cent of balance projectlakh cost.

2. SC/ST/OBC/ Up to Rs. 10 lakh 30 per cent of project costWomen/PH/Ex-servicemen/NE Region /Hill areas

Above Rs. 10 lakh Rs. 3 lakh plus 10 perand up to Rs. 25 cent of balance projectlakh cost.

Note: SC/ST – Scheduled Caste/Scheduled Tribe; PH – PhysicallyHandicapped: NE – North Eastern

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3.4.0 DEFINITION OF “RURAL AREA” AND “VILLAGEINDUSTRIES”

3.4.1 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.

3.4.2 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”.

3.4.3 All activities which do not appear in the negative list

circulated by KVIC are eligible for financing under the

scheme.

3.5.0 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.

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Products of the units of REGP beneficiary entrepreneurs

3.6.0 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.

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3.7.0 ENTREPRENEURSHIP DEVELOPMENTPROGRAMME (EDP)

Once the project is sanctioned by financing branch of the Bank,

before releasing the second installment of loan, beneficiary is

to be imparted a 3-day EDP training arranged by the State/

Regional Director.

3.8.0 STATUS AND PROGRESS OF REGP

3.8.1 Since the commencement of REGP, 2,09,705 projects have

been financed and 28.05 lakh job opportunities have been

created up to 31.03.2005. Keeping in view REGP’s potential,

the Government revised the target of creating 20 lakh

additional jobs to 25 lakh additional jobs during the 10th Plan

period.

3.8.2 During 2004-05, against the target of generating 5.25 lakh

additional job opportunities under Rural Employment

Generation Programme (REGP), 5.30 lakh job opportunities

have been generated, thus recording a 12.5 per cent growth in

employment generation as compared to that during 2003-04

(4.71 lakh against the target of generating 5 lakh job

opportunities). The target for generating additional employment

opportunities for 2005-06 and 2006-07 are 5.50 lakh and 5.90

lakh, respectively.

3.8.3 During 2005-06 (up to January 2006), 14808 projects have

already been set up, generating 3.33 lakh additional

employment opportunities as against the target of creation of

5.50 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.

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Year Target for Employment Number Marginemployment generated of projects moneygeneration during year set up released

(lakh persons) (lakh persons) (Rs. crore)

2002-03 4.00 3.61 21024 193.71

2003-04 5.00 4.71 24747 264.38

2004-05 5.25 5.50 23454 292.36

2005-06 5.50 3.33 14808 322.47

(up to Jan. 06)

3.8.4 The achievements during the 10th Plan period are as under:

Sr. No. Category No. Projects Percentage

1. Scheduled Castes 893 6.0

2. Scheduled Tribes 984 6.7

3. OBC 3143 21.3

4. Minority Community 1900 12.8

5. Ex-Servicemen / physically 226 1.5

handicapped

6. General 7662 51.7

Total 14808 100

Women 3972 26.8

3.8.5 CATEGORY- WISE DISTRIBUTION OF PROJECTS

Under the REGP, 2,09,705 units have been set up since its

inception to 31.03.2005. Of these, approximately 12.4 per

cent of the projects have benefited persons from the

Scheduled Castes, 5.7 per cent from Scheduled Tribes and

23.8 per cent from OBCs, while 25.8 per cent have helped

women entrepreneurs secure gainful employment. During

2005-06, 14,808 number of projects sanctioned up to

January 2005 under which the category-wise share are as

under:-

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3.8.6 STATE-WISE PERFORMANCE OF REGP

State-wise performance in respect of project sanctioned, margin

money utilised and employment generated during 2005-06 are

given at Table-I, Table-II and Table-III, respectively.

3.8.7 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. These linkages include EDP

Trainings, exhibitions of products manufactured by REGP

entrepreneurs, district/state level workshops and awareness

camps, identification of success stories and its dissemination,

etc. An amount of Rs. 667.84 lakh have been released towards

backward-forward linkages which has utilised for organizing

55 workshops, 215 awareness camps and 40 exhibitions. 8712

persons have under gone EDP training during the year 2005-

06 (up to January 2006).

3.9.0 OTHER INITIATIVES

3.9.1 For better implementation of the REGP, the KVIC has taken

the following initiatives:

(i) decentralisation of the implementation of the scheme by

making payment of margin money through State Offices

and State KVI Boards;

(ii) financing of units based on coir, as raw material allowed;

(iii) financing of auto-rickshaws in Andaman and Nicobar

Islands, house boat, shikara and tourist boat in Jammu

and Kashmir also allowed under rural transport, keeping

in view the special requirement of the State/UT:

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(iv) for providing information/guidance to the new

entrepreneurs, REGP helping counters were opened

in all the field offices of the KVIC and the State KVI

Boards;

(v) 10 per cent of the total budget under REGP allocated

exclusively for the States of North Eastern Region;

(vi) 40 per cent of the total target to be for the Agro & Food

Based Industries in each State/Division/UT;

(vii) 30 per cent of the total target to be from women

entrepreneurs;

(viii) self-help sroups (SHGs) also to be provided assistance

under REGP Scheme;

(ix) state level Task Force Committees constituted for better

monitoring and implementation of REGP;

(x) Rural Industries Consultancy Service Cells (RISCs)

opened in 49 places so far for guiding and preparing

projects for first generation entrepreneurs. Another 25

RICS Cells in the process of being set up;

(xi) 178 Training Centers identified for providing EDP training

to REGP employment throughout the country;

(xii) for placing margin money in advance with nodal branches

of banks at state level, 214 nodal branches of public sector

banks identified by state/divisional offices and 132 nodal

branches of public sector banks identified by State/UT

KVI Boards in the country;

(xiii) funds provided to State/Divisional Off ices for

conducting awareness camps, workshops, and

exhibitions, etc. as support services under backward -

forward linkages. 50 per cent of the same allocated to

State/UT KVI Boards;

(xiv) 25 per cent of the stalls in each exhibition of REGP to be

allotted for disadvantaged section beneficiaries including

women beneficiaries;

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TABLE-IGROUPWISE PROJECTS SET UP UNDER REGP DURING 2005-06 ( UP TO JANUARY 2006)

Sr. No. State/UT Food Forest HMP/FI MBI PCBI REBT Ser/ Tex TotalProc.& Based

Agro Based Ind.

NORTH ZONE

1 UT Chandigarh 1 0 0 0 0 0 2 3

2 Delhi 3 4 0 0 2 1 1 11

3 Haryana 191 39 34 75 83 169 160 751

4 Him.Pradesh 92 11 1 35 14 83 178 414

5 Jammu& Kashmir 227 50 30 93 68 188 479 1135

6 Punjab 240 12 10 106 29 75 150 622

7 Rajasthan S.O 229 81 31 176 74 140 154 885

8 Bikaner D.O 12 2 1 56 7 11 6 95

TOTAL 995 199 107 541 277 667 1130 3916

EAST ZONE

9 A & N Islands 67 53 2 25 2 24 425 598

10 Bihar 110 43 7 30 10 56 37 293

(xv) to mitigate the problems of the rural entrepreneurs, who

are otherwise required to furnish collateral security for

projects under REGP, coverage under Credit Guarantee

Fund Trust for small industries (CGTSI) provided;

(xvi) convergence with Army Wives Welfare Association (AWWA)

to create awareness about REGP among ex-servicemen

and war widows and also to provide the marketing support

for its products in sales outlets of army cantonments;

(xvii) Nehru Yuvak Kendra Sangthan (NYKS), which carries

out self-development programme for Rural Youth through

clubs to conduct awareness camps and entrepreneurs’

workshop for REGP amongst the Rural Youth with focus

on SC/ST /minority and women category;

(xviii) MoU signed by KVIC with Department of Women and

Child Development, Ministry of HRD, New Delhi for

convergence in the area of credit linkages, marketing tie-

up, etc., through SHGs for bettering the cause of SHGs

and rural employment, etc.

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Sr. No. State/UT Food Forest HMP/FI MBI PCBI REBT Ser/ Tex TotalProc.& Based

Agro Based Ind.

11 Jharkhand 32 3 5 54 4 15 11 124

12 Orissa 44 12 8 29 12 23 44 172

13 West Bengal 516 186 61 285 118 348 394 1908

TOTAL 769 297 83 423 146 466 911 3095

N.E.ZONE

14 Aru.Pradesh 15 12 0 7 0 3 14 51

15 Assam 494 76 40 159 101 228 180 1278

16 Manipur 2 3 0 3 0 5 2 15

17 Meghalaya 18 19 3 19 5 4 29 97

18 Mizoram 22 8 5 6 2 36 42 121

19 Nagaland 17 5 2 4 2 16 54 100

20 Tripura 23 5 9 8 7 15 44 111

21 Sikkim 10 5 1 1 0 8 30 55

TOTAL 601 133 60 207 117 315 395 1828

SOUTH ZONE

22 And.Pradesh S.O 296 78 28 330 97 226 302 1357

23 Visakhapatnam D.O 8 9 4 48 4 9 8 90

24 Karnataka 96 48 9 68 19 99 161 500

25 Kerala 134 57 14 98 52 111 62 528

26 Lakshadweep 0 0 0 0 0 0 0 0

27 Pondicherry 15 0 0 5 0 5 11 36

28 Tamilnadu (S.O.) 55 2 5 46 12 52 57 229

29 Madurai D.O 32 2 3 6 1 6 16 66

TOTAL 636 196 63 601 185 508 617 2806

WEST ZONE

30 Goa 35 0 0 19 12 18 49 133

31 Gujarat 80 1 3 36 38 148 83 389

32 Maharashtra S.O 220 34 32 112 73 146 75 692

33 Nagpur D.O 4 3 3 5 2 5 7 29

TOTAL 339 38 38 172 125 317 214 1243

CENTRAL ZONE

34 Chattisgarh 137 21 6 60 25 79 64 392

35 Madhya Pradesh 71 14 8 46 15 46 28 228

36 Uttaranchal 43 8 7 18 5 27 47 155

37 Uttar Pradesh S.O 356 35 26 108 98 126 132 881

38 Varanasi D.O 10 0 0 3 2 6 6 27

39 Meerut D.O 73 13 6 34 15 50 35 226

40 Gorakhapur D.O. 7 1 0 1 0 1 1 11

TOTAL 697 92 53 270 160 335 313 1920

G.TOTAL 4037 955 404 2214 1010 2608 3580 14808

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TABLE –IIGROUPWISE M.M.UTILISATION UNDER REGP DURING 2005-06

(UP TO JANUARY 2006)(Rs. lakh)

Sr. No. State/UT Food Forest HMP/FI MBI PCBI REBT Ser/ Tex TotalProc.& BasedAgro Ind.

Based

NORTH ZONE

1 UT Chandigarh 1.23 0.00 0.00 0.00 0.00 0.00 2.40 3.63

2 Delhi 4.11 5.31 0.00 0.00 2.98 0.64 0.84 13.88

3 Haryana 375.85 59.66 61.82 145.49 187.63 343.77 307.65 1481.87

4 Him.Pradesh 153.78 15.74 0.23 54.59 18.32 125.06 168.24 535.96

5 Jammu& Kashmir 183.96 38.38 23.44 76.93 53.94 146.63 332.62 855.90

6 Punjab 243.85 14.47 25.62 98.08 46.76 130.17 146.25 705.20

7 Rajasthan S.O 312.77 55.56 45.99 303.01 89.13 172.75 121.96 1101.17

8 Bikaner D.O 31.39 6.00 0.95 157.07 18.45 26.03 13.30 253.19

TOTAL 1306.94 195.12 158.05 835.17 417.21 945.05 1093.26 4950.80

EAST ZONE

9 A & N Islands 23.21 14.21 1.11 24.76 1.29 17.69 136.60 218.87

10 Bihar 123.37 37.35 9.07 37.19 13.74 61.77 47.33 329.82

11 Jharkhand 52.59 5.92 11.20 87.13 3.60 20.57 16.73 197.74

12 Orissa 50.68 13.87 9.15 35.23 14.51 33.63 43.78 200.85

13 West Bengal 485.93 89.56 62.99 275.69 112.32 343.85 240.41 1610.7

TOTAL 735.78 160.91 93.52 460.00 145.46 477.51 484.85 2558.03

N.E. ZONE

14 Aru.Pradesh 27.50 19.88 0.00 13.51 0.00 7.88 23.19 91.96

15 Assam 497.32 81.22 42.47 157.85 102.70 231.95 167.67 1281.18

16 Manipur 0.75 2.10 0.00 1.64 0.00 2.70 0.75 7.94

17 Meghalaya 26.04 22.40 3.85 32.94 3.29 0.95 26.19 115.66

18 Mizoram 41.72 16.10 11.13 9.77 3.47 44.49 62.53 189.21

19 Nagaland 19.88 4.93 2.80 4.02 2.06 17.20 49.38 100.27

20 Tripura 24.15 5.95 3.90 9.17 9.82 16.20 44.61 113.80

21 Sikkim 12.68 8.80 1.29 2.15 0.00 10.35 23.21 58.48

TOTAL 650.04 161.38 65.44 231.05 121.34 331.72 397.53 1958.50

SOUTH ZONE

22 And.Pradesh S.O 417.68 127.80 53.65 476.79 166.93 345.81 364.23 1952.89

23 Visakhapatnam D.O 22.17 25.30 8.90 138.79 9.90 25.91 18.50 249.47

24 Karnataka 116.76 58.00 11.42 84.11 27.78 128.39 182.47 608.93

25 Kerala 190.13 89.18 25.22 172.31 90.74 173.12 110.15 850.85

26 Lakshadweep 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

27 Pondicherry 2.59 0.00 0.00 0.55 0.00 0.62 1.89 5.65

28 Tamilnadu (S.O.) 64.19 2.17 7.29 58.53 15.06 61.69 66.78 275.71

29 Madurai D.O 27.27 1.58 2.91 5.99 0.52 8.73 19.25 66.25

TOTAL 798.25 296.94 102.57 915.80 296.75 715.91 741.71 4009.75

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WEST ZONE

30 Goa 25.75 0.00 0.00 14.75 9.20 12.80 39.89 102.39

31 Gujarat 138.68 2.72 8.04 63.28 87.45 213.55 53.43 567.15

32 Maharashtra S.O 544.33 59.95 67.69 213.01 141.14 283.56 106.63 1416.31

33 Nagpur D.O 3.79 3.84 3.36 8.24 5.11 12.04 11.00 47.38

TOTAL 712.55 66.51 79.09 299.28 242.90 521.95 210.95 2133.23

CENTRAL ZONE

34 Chattisgarh 286.97 41.27 11.86 131.73 51.69 155.91 83.75 763.18

35 Madhya Pradesh 175.96 37.13 19.32 122.34 34.19 95.59 62.58 547.11

36 Uttaranchal 69.31 12.79 11.93 37.23 10.61 47.65 69.38 258.90

37 Uttar Pradesh S.O 539.29 43.76 35.87 171.48 137.76 184.32 175.53 1288.01

38 Varanasi D.O 22.81 0.00 0.00 7.23 3.30 12.12 12.72 58.18

39 Meerut D.O 143.68 25.16 12.72 73.63 27.85 104.99 72.78 460.81

40 Gorakhapur D.O. 14.75 1.25 0.00 2.10 0.00 2.59 1.00 21.69

TOTAL 1252.77 161.36 91.70 545.74 265.40 603.17 477.74 3397.88

G.TOTAL 5456.33 1042.22 590.37 3287.04 1489.06 3595.31 3406.04 19008.19

Sr. No. State/UT Food Forest HMP/FI MBI PCBI REBT Ser/ Tex TotalProc.& BasedAgro Ind.

Based

TABLE IIIGROUPWISE EMPLOYMENT OPPORTUNITIES GENERATED UNDER REGP

DURING 2005-06 ( UP TO JANUARY 2006)(Empl. : No of persons)

Sr. No. State/UT Food Forest HMP MBI PCBI REBT Ser/ Tex TotalProc.& Based /FIAgro

Based Ind.

NORTH ZONE

1 UT Chandigarh 16 0 0 0 0 0 20 36

2 Delhi 30 34 0 0 21 9 12 106

3 Haryana 4453 795 784 3078 1369 4024 3810 18313

4 Him.Pradesh 1760 242 3 1242 170 2353 3239 9009

5 Jammu& Kashmir 3014 576 378 1352 766 2217 5229 13532

6 Punjab 5441 483 395 2437 1090 2838 3484 16168

7 Rajasthan S.O 5307 955 822 6926 1237 2970 2464 20681

8 Bikaner D.O 851 195 15 3658 279 813 532 6343

TOTAL 20872 3280 2397 18693 4932 15224 18790 84188

EAST ZONE

9 A & N Islands 345 233 18 591 9 263 3036 4495

10 Bihar 1805 608 136 654 196 897 767 5063

11 Jharkhand 657 81 184 2046 32 321 170 3491

12 Orissa 743 217 149 801 102 497 987 3496

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13 West Bengal 7940 2790 1105 4526 2566 5034 6113 30074

TOTAL 11490 3929 1592 8618 2905 7012 11073 46619

N.E.ZONE

14 Aru.Pradesh 340 287 0 239 0 103 424 1393

15 Assam 8886 1439 762 3380 1529 4096 3776 23868

16 Manipur 11 34 0 39 0 18 16 118

17 Meghalaya 338 308 33 654 23 13 409 1778

18 Mizoram 397 168 150 204 24 731 1240 2914

19 Nagaland 198 65 17 57 14 207 917 1475

20 Tripura 361 97 63 220 68 240 904 1953

21 Sikkim 80 53 8 10 0 59 397 607

TOTAL 10611 2451 1033 4803 1658 5467 8083 34106

SOUTH ZONE

22 And.Pradesh S.O 8433 2430 1064 10096 2706 5802 9449 39980

23 Visakhapatnam D.O 178 376 146 3229 69 331 256 4585

24 Karnataka 1692 920 180 1758 273 1791 3894 10508

25 Kerala 2974 1294 321 3206 670 2500 1718 12683

26 Lakshadweep 0 0 0 0 0 0 0 0

27 Pondicherry 102 25 27 165 0 77 170 566

28 Tamilnadu (S.O.) 964 35 119 1348 122 922 1401 4911

29 Madurai D.O 527 25 47 139 12 110 401 1261

TOTAL 14870 5105 1904 19941 3852 11533 17289 74494

WEST ZONE

30 Goa 385 0 0 331 78 191 860 1845

31 Gujarat 2280 44 90 1286 926 4033 2265 10924

32 Maharashtra S.O 8109 981 1104 5010 1053 4224 2203 22684

33 Nagpur D.O 57 63 55 198 35 150 200 758

TOTAL 10831 1088 1249 6825 2092 8598 5528 36211

CENTRAL ZONE

34 Chattisgarh 4387 549 167 2841 618 2333 1850 12745

35 Madhya Pradesh 3579 696 357 2388 612 1856 1413 10901

36 Uttaranchal 1127 198 202 827 173 746 1655 4928

37 Uttar Pradesh S.O 7596 640 516 3173 1904 2342 3463 19634

38 Varanasi D.O 273 0 0 111 23 139 147 693

39 Meerut D.O 2371 476 178 1392 443 1668 1286 7814

40 Gorakhapur D.O. 107 20 0 50 0 38 66 281

TOTAL 19440 2579 1420 10782 3773 9122 9880 56996

G.TOTAL 88114 18432 9595 69662 19212 56956 70643 332614

Sr. No. State/UT Food Forest HMP MBI PCBI REBT Ser/ Tex TotalProc.& Based /FIAgro

Based Ind.

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COIR SECTOR / COIR BOARD

4.1.0 COIR INDUSTRY

4.1.1 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, manufacturers and exporters.

4.1.2 The coir industry employs more than 6 lakh persons of

whom a majority are from rural areas belonging to the

economically weaker sections of society. Nearly 80% of

the coir workers in the fibre extraction and spinning sectors

are women.

4.1.3 The development of coir industry has all along been in areas

where there is a concentration of coconut trees and

availability of coconut husks. Historically the coir industry

started and flourished in Kerala which has a long coast line,

lakes, lagoons and backwaters providing 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. The

production and processing methods in coir industry still

continue to be mainly traditional. For instances spinning is

mainly carried out on traditional ratts which require walking,

forward and backward.

Chapter

4

50


4.1.4 Details showing production of Coir and Coir Products during

the 10th Plan period are as under:

(Quantity in MTs)

Item 2002-03 2003-04 2004-05 2005-06(projected)

Coir Fibre 3,53,700 3,64,000 3,85,000 4,30,000

Coir Yarn 2,26,800 2,32,500 2,45,500 2,80,000

Coir Products 75,750 77,900 98,000 98,000

Coir Rope 50,000 50,000 50,000 57,000

Curled Coir 28,000 29,500 36,500 38,000

Rubberised Coir 50,250 51,000 60,000 64,000

4.1.5 Similarly, the consumption of coir and coir products during the

10th Plan period are as under:

(Quantity in MTs)

Item 2002-03 2003-04 2004-05

Coir Fibre 89,200 38,400 3,65,750

Coir Yarn 1,25,300 1,96,959 2,22,500

Coir Products 26,500 19,469 22,500

Coir Rope 49,700 49,692 49,500

Curled Coir 27,500 29,424 35,700

Rubberised Coir 49,700 50,538 54,000

Coir Pith

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4.2.0 COIR BOARD

4.2.1 The Coir Board is a statutory body established under the

Coir Industry Act, 1953 for promoting the overal l

development of the coir industry and upliftment of the living

conditions of the workers engaged in this traditional

industry.

4.2.2 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.

4.2.3 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

Garden articles

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establishment of units for the manufacture of products;

promoting co-operative organisations among producers of

husks, coir fibre, coir yarn and manufacturers of coir products;

ensuring remunerative returns to producers and manufacturers,

etc.

4.3.0 THRUST AREAS FOR DEVELOPMENT OF COIRINDUSTRY

The thrust areas for development of coir sector in the country

are as follows:

(i) Modernisation of production infrastructure by means

of appropriate technology without displacement of

labour.

(ii) Expansion of domestic market through publicity and

propaganda.

(iii) Promotion of export of coir and new products by

undertaking market promotion abroad.

(iv) Promotion of research and development activities like

process improvement, Product development and

diversification and elimination of drudgery and pollution

abatement.

(v) Development of manpower through training.

(vi) Extension of Research and Development findings through

field demonstration.

(vii) Development of coir industry in all the coir producing

States in association with the State Governments.

4.4.0 ACTIVITIES OF THE COIR BOARD

The activities being carried out by the Coir Board for the overall

development of coir sector are as under:

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4.4.1 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 2005-2006 are

as under:

4.4.2 MODERNISATION OF EXTRACTION ANDPROCESSING OF COIR FIBRE

(i) Pilot Scale Laboratory: The facilities of the Pilot Scale

Laboratory set up in CCRI was extended to the coir

entrepreneurs. In this laboratory, 200 KG of coirret and

3550 KG of pithplus were produced.

(ii) Research Activities: Experimental studies on the

treatment of phenolytic strain of bacteria Mycoplana

bullatta and lygnolyt ic strains, Phenerochaete

chrysosporium and Coriolus versicolor were applied

on coir fibre for biobleaching and biosoftening. Further

experiments on these are being carried out. This

would lead to economic utilisation of brown fibre

produced in the non-traditional coconut growing states

of India.

(iii) Training: Field trial demonstration on composting of coir

pith using perforated PVC pipes(‘insitu’ composting) was

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carried out successfully in Common Facility Centre,

Kattukada under Kanjikuzhy Panchayat in Alleppey district

in Kerala. Similarly, trainees from Lakshadweep, Tamil

Nadu, Karnataka, Orissa and the North East were trained

on fibre treatment using Coirret & composting of coir pith

using Pithplus.

(iv) Testing: As per the request received from different coir

entrepreneurs analysis of 57 coir pith samples were

carried out in laboratories of Coir Board for Nitrogen,

Phosphorous, Potassium (NPK), ph, Salinity, Organic

Carbon, Lignin and phytosanitary certification for the

presence of E. Coil & Salmonella bacteria in the

laboratory. The percentage of elemental copper in coir

pith and composted pith were also estimated using Atomic

Absorption Spectrophotometer.

(v) Vanilin Project : A project for extracting vanillin from coir

pith was undertaken with varying percentage of yield.

Further experiment is being carried out to have the best

yield. Successful implementation of the project would lad

to manufacture of vanillin, which has diverse use from

coir by-products.

(vi) Regeling Handels Potgronden (RHP) Laboratory:

Equipments like Nitrogen estimation system, Socs-plus

solvent extraction systems, Electronic Balances, Atomic

Absorption Spectrophotometer, UV spectrophotometer,

Freeze Dryer, Moisture analyzer, Scanning electron

Microscope GC-MS & HPLC have been installed in the

RHP Laboratory.

(vii) Awareness Generation: In order to generate an

awareness on the economic utilization of coir and coir

pith, various R&D products were displayed at the First

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National Expo of Small Scale Agro & Rural Industries,

New Delhi from 26 - 29 September 2005, International

Coconut Seminar & Exhibition in Goa in December 2005

and World Expo -2005 at Mumbai.

4.4.3 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 metres 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. Further field trial is being undertaken for

commercialisation of this product.

(iii) A collaborative project with PSG College of Technology

has also been undertaken for development of Platform

mounted mobile defibering machine. Successful

implementation of the project would help to mechanise

the fibre extracting process in the coir sector leading to

improved productivity.

4.4.4 PRODUCT DEVELOPMENT AND DIVERSIFICATION

(i) The development of blended yarn of coir fibre and sisal

fibre at 80:20 respectively and manufacturing of novel

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products with blended yarns and weaving mats on power

loom, jacquard and semi mechanised loom with new

patterns continued to be a thrust area for R&D activities

of Coir Board as part of product development and

diversification effort. Altogether 183 numbers of different

blends of coir products were produced which included

products manufactured with coir yarn dyed with vegetable

dyes.

4.4.5 TESTING AND SERVICE FACILITY

(i) Technical staff have been deputed in the field for

popularisation of research products as per as PITHPLUS,

COIRRET, etc. and also for the utilisation of Coir

Bhoovastra for soil erosion control.

(ii) During the period under report, CCRI has undertaken

testing of different types of coir products as per the

requirements of Bureau of Indian Standards and

exporters and tested the samples as per the standards

formulated by BIS and ASTM. A total number of 245

samples of coir and coir products were tested in the

Physical Testing laboratory & ASTM laboratory of CCRI

& CICT. Details of products tested in these laboratories

are:

(a) Rubberised Coir : 27 Sets

(b) Testing of light fastness : 20 Nos.

(c) Testing of Fibre : 1 No.

(d) Testing of Geotextiles : 84 Nos.

(e) Break load of Rope : 10 Nos.

(f) Break load of yarn : 15 Nos.

(g) Strength of Hydrogen peroxide : 2 Nos.

(h) Testing of Curled Coir Rope : 1 No.

(i) Shade matching : 35 Nos.

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4.5.0 DOMESTIC MARKET PROMOTION

4.5.1 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 popularising coir and coir

products by way of publicity by way of organising exhibitions

in different parts of the country through audio and visual

media, sales campaign, press advertisement and through

pamphlets, hoardings etc. The Coir Board has participated

in 75 exhibitions during 2005-06 (up to January 2006) for

popularization of coir and coir products in the domestic

market.

4.5.2 To promote the sale of coir and coir products manufactured

by the Co-operatives and Public Sector Enterprises a

Market Development Assistance (MDA) Scheme was

launched in 2001-2002. During 2005-2006, an amount of

Rs. 253.00 lakh (provisional) has been released under the

Scheme.

4.5.3 The Coir Board has 31 Showrooms and Sales Depots as

marketing outlets. The sales through the Board’s Showrooms

during the year (up to January 2006) has been of the order

of Rs 553 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 2005-06

(up to Jan. 06)

692.45 727.29 762.55 553.00

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4.6.0 EXPORT MARKET PROMOTION

4.6.1 India retained the position as the largest producer and supplier

of coir and coir products. The share of India in the global

production of coir is 80 per cent (in terms of 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 these items.

4.6.2 During the year 2005-2006, 108041 MTs (April 2005 to January,

2006) of coir and coir products valued at Rs. 406.27 crore have

been exported from India registering a growth of 9.87 per cent

in terms of quantity and 3.05 per cent in terms of value as

against the export made during the same period of last year.

The details of exports of coir and coir products made during

the 10th Plan period are as under:

4.6.3 During the year 2005-2006 (up to January 06), the Coir Board

participated in the following fairs and exhibitions for

promotion of exports coir and coir products abroad:

(i) New York Home Textile Show, New York City, USA (8-11

April, 2005)

(ii) National Hardware Show, Las Vegas, USA (17-19 May,

2005)

Year Quantity Value

(Metric Tonnes) (Rs. crore)

2002-2003 84183 352.70

2003-2004 102253 400.40

2004-2005 122927 473.40

2005-2006 108041 406.27

(up to Jan. 06)

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(iii) Indian Home Furnishing Fair, Tokyo, Japan (31May to 2

June, 2005)

(iv) Impex, Melbourne, Australia (7-9 June, 2005)

(v) India Expo, Warsaw, Poland (16-18 June, 2005)

(vi) National Floor Show, Harrogate, UK ( 6-8 September, 2005)

(vii) SAITEX, 2005, Johannesburg, South Africa (27 – 30

September, 2005)

(viii) Made in India Show, Shanghai (17-20, October, 2005)

In all these exhibitions visitors and buyers evinced keen interest

on the range of products exhibited. The exporters participating

in these events were able to get confirmed orders.

4.7.0 DEVELOPMENT OF PRODUCTIONINFRASTRUCTURE

4.7.1 The Brown Fibre Sector of the coir industry in India has

progressed rapidly during the past 3 decades.

4.7.2 Under this scheme, Coir Board is extending financial assistance

of 25 per cent of the cost of equipments and infrastructural

facilities subject to ceiling of Rs. 1.5 lakh for setting up coir

units and Rs. 50,000 for modernisation of existing coir units

and for installation of generator sets in fibre/curled coir units.

4.7.3 Financial assistance given to the units during the 10th Plan

period is as under:

Year Amount Number of Units(Rs. lakh)

2002-2003 28.71 252003-2004 73.16 582004-2005 69.94 482005-2006(upto Jan.06) 50.34 36

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4.8.0 CO-OPERATIVISATION

Cooperativisation is the only Centrally Sponsored Scheme in

the Ministry of Agro and Rural Industries. In view of the low

level of response from the various State Governments towards

this scheme, it has been decided to phase out the scheme by

the end of the 10th Plan period.

4.9.0 TRAINING, EXTENSION, QUALITYIMPROVEMENT, MAHILA COIR YOJANA ANDWELFARE MEASURES

4.9.1 TRAINING

The Coir 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 were conducted:-

(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

(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 to suit the convenience of coir

workers at 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.

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The number of persons trained during the 10th Plan period

are as under:

Year Number of persons trained

2002-2003 3371

2003-2004 6829

2004-2005 13318

2005-2006

(upto Jan.06) 12864

4.9.2 QUALITY

The Coir Board has been organising 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 2005-2006, 16 QIPs/EDPs have been

conducted.

Training to workers on motorised Ratt on 30.1.06 at Wayanada Distt. of Kerala

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4.9.3 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 rural women artisans in

regions producing coir fibre. Conversion of coir fibre into yarn

on motorised ratt in rural households 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 is also eligible for subsidy for purchasing a

motorised ratt. The beneficiary under the scheme sets 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:

Year No. of ratts distributed Assistance sanctioned

2002-2003 1303 38,79,000

2003-2004 1556 64,25,554

2004-2005 3212 1,12,79,588

2005-2006

(up to Jan.06) 2783 87,19,321

4.10.0 BUDGETARY SUPPORT TO THE COIR BOARD

4.10.1 For implementing the various schemes/programmes, the

Government has provided the following budgetary support to

the Coir Board during the 10th Plan period:

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4.11.0 INTEGRATED COIR DEVELOPMENT PROJECT(ICDP)

4.11.1 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.

4.11.2 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-

Plan – (Science & 4.25 4.25 5.00 5.50 5.50Technology)

Plan-(General)

Training, Extension &Quality Improvementincluding Mahila CoirYojana and WelfareMeasures 0.95 0.95 2.25 12.00 2.90

Domestic MarketPromotion 2.70 3.70 5.41 9.00 5.50

Export Promotion 1.50 1.25 1.00 2.00 2.00

Trade Information Service,Information Technologyand Strengthening of H.Q 2.15 1.80 1.20 3.00 3.00

Development of ProductionInfrastructure 1.40 1.20 1.30 3.50 3.50

Economic Market Research - 0.10 0.11 0.50 0.50

Plan - Cooperativisation 0.04 0.83 — 0.01 0.10

Plan - Development of NERegion (adjusted fromDMP) 0.76 0.44 0.53 — —

Total 13.75 14.52 16.80 35.51 23.00

(Rs. crore)

Name of the Scheme 2002-03 2003-04 2004-05 2005-06 2006-07(RE) (BE)

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operatives and bring the coir workers into the co-operative fold

to protect them from exploitation by the middlemen.

4.11.3 The Government of India has provided Rs.100 lakh towards

Co-operativisation during the year 2004-2005.

4.12.0 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:

(Quantity = Sq. Mtrs.) (Value = Rupees in Lakhs)

2002-03 2003-04 2004-05 2005-06(upto Jan.06)

Quantity 1,54,270.06 1,96,269.00 2,12,536.14 1,34,983.65

Value 144.06 183.00 245.26 180.00

4.13.0 CLUSTER AREA DEVELOPMENT

The Coir Board under the recently concluded UNDP Sponsored

Project had 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. This has facilitated small manufacturers to

produce coir products in a cost effective manner.

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4.14.0 NEW INITIATIVES

4.14.1 ENTREPRENEURSHIP DEVELOPMENTPROGRAMMES (EDPS)

It is reckoned that at present only about 37 per cent of the total

production of coconut husk is being utilized in the coir industry.

For generating employment avenues in the coir sector the

utilization of husk has to be increased considerably for which

more new units are required to be set up. In order to motivate

and to identify prospective entrepreneur for setting up of new

coir units and managing the unit, the Coir Board has decided

to organise EDPs by engaging professionally competent and

reputed organisations.

4.14.2 COIR BOARD COIR WORKERS GROUPPERSONAL ACCIDENT INSURANCE SCHEME

The Insurance scheme for coir workers was introduced by Coir

Board w.e.f. 01.12.1998 and is being renewed year after year.

The Insurance scheme was renewed w.e.f. 01.12.2005 by

doubling the existing assistance and by providing assistance for

finger cut, etc. with the New India Assurance Company Limited.

Insurance premium for Rs.9,96,208/- for a period of one year

w.e.f. December 2005 was paid to the Insurance Company.

The compensation payable was as under:

(i) Accidental Death : Rs. 50,000.00

(ii) Permanent Total Disability

(a) Loss of two limbs/two eyes : Rs.50,000.00

(b) Loss of one limb and one eye : Rs. 50,000.00

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(iii) Permanent Partial Disability

(a) Loss of one limb/one eye : Rs. 25,000.00

(b) Provision for finger cut : Depending upon the

finger and limited to

applicable

percentages of

capital sum insured of

Rs. 40,000/- as per

Personal Accident

Policy conditions.

During the financial year 2005-06, six insurance claims were

settled and an amount of Rs. 1,37,500/- has been paid towards

compensation. Seven cases were also recommended for

payment of compensation during December 2005.

4.14.3 PRODUCTION ENHANCEMENT LINKED COIRWORKERS WELFARE SCHEME

The Ministry has approved a Scheme “Production

Enhancement Linked Coir Workers Welfare Scheme” in

replacement of the welfare scheme titled “Model Coir Village

Scheme”. This new scheme has the following objectives:

(a) Mitigate the hardship of workers and to ameliorate their

living and working conditions.

(b) Enhance productivity and employment generation through

the production oriented welfare scheme.

(c) Improve the working and living conditions of the coir

workers so as to attract the younger generation to the coir

industry thereby creating new employment opportunities.

The Production Enhancement Linked Coir Workers Welfare

Scheme will be implemented by the Coir Board on an

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experimental basis during 2005-06 at a total cost of Rs.130

lakh. The Board has received proposals from the States of

Kerala, Karnataka and Orissa. Proposals from Tamil Nadu

and Andhra Pradesh are also expected. The Coir Board has

already taken intiitiatives for implementation of various

proposals under the scheme and to fully utilize the fund

available under this head.

4.15.0 ALAPPUZHA COIR CLUSTER DEVELOPMENTPROJECT

The Alappuzha Coir Cluster Development Project was launched

by the Minister (SSI&ARI) on 8 October 2005 at Central Coir

Research Institute, Kalavoor, Alleppey for creating planned

infrastructure facilities under the project. This project with an

outlay of Rs. 56.80 crore has been sanctioned by the

Department of Industrial Policy and Promotion (DIPP) for

cluster-based development of coir industry in Kerala, with

central grant of Rs. 42.60 crore (75 per cent of project cost),

under the Industrial Infrastructure Upgradation Scheme of the

DIPP.

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PRIME MINISTER’S ROZGARYOJANA

5.1.0 INTRODUCTION

5.1.1 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.

5.1.2 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 for generating 3.75 lakh self-employment

opportunities per annum.

5.2.0 IMPLEMENTATION OF THE SCHEME

5.2.1 Under PMRY, an educated unemployed person living in any

part of the country 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 cities of Kolkata, Chennai, Mumbai and Delhi, the

application has to be filed directly with the office of the Director

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of Industries in the cities of Kolkata, Chennai and Mumbai and

in the office of Deputy Commissioner of the respective zones

in Delhi.

5.2.2 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.

5.2.3 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.

5.3.0 ELIGIBILITY NORMS UNDER THE SCHEME

5.3.1 Age:

• 18 to 35 years for all educated unemployed in the country

except for North Eastern States, Uttaranchal, Himachal

Pradesh and Jammu & Kashmir.

• 18 to 40 years for all educated unemployed 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.

5.3.2 Educational Qualifications: 8th Passed. Preference will be

given to those trained in any trade in Government recognised/

approved institutions for at least six months.

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5.3.3 Family Income: The income of the beneficiary and the spouse

along with the income of the parents of the beneficiary should

not exceed Rs. 40,000/- per annum.

5.3.4 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.

5.3.5 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.

5.3.6 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.

5.4.0 FINANCIAL TERMS UNDER PMRY

5.4.1 Project Cost:

• Rs. 1.00 lakh for business sector.

• Rs. 2.00 lakh for other activities.

• Loan to be of a 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.

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• Self Help Groups (SHG) can be considered for assistance

under the Scheme.

5.4.2 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

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.

5.4.3 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.

5.4.4 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.

(Note:As per the Reserve Bank of India guidelines, rate of interest on

loans up to Rs.2.00 lakh should not exceed the Prime Lending Rate

(PLR) of the banks).

5.4.5 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 &

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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.

5.4.6 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.

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.

5.5.0 NUMBER OF PERSONS TRAINED UNDER PMRYDURING 10TH PLAN PERIOD

Year No. of beneficiaries trained

2002-03 235558

2003-04 247087

2004-05 267808

2005-06* 72518

Total 822971

*up to November 2005

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5.6.0 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.

5.7.0 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.

5.8.0 MONITORING & GUIDANCE FOR PMRY

5.8.1 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 Rozgar Yojana. In

all the districts, District Industries Centre is the implementing

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agency except in the metropolitan cities of kolkata, 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 overall guidance of the District

PMRY Committee. They are required to formulate location

specific plans of action, based on realistic demand

assessment for various activities.

5.8.2 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.

5.8.3 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, Government of India,

New Delhi.

5.8.4 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).

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5.9.0 CUMULATIVE STATUS OF PROGRESS UNDERPMRY DURING 10TH PLAN PERIOD

The details of applications sanctioned & disbursed and

credit flow under PMRY during 10th Plan period are as

under:

5.10.0 EMPLOYMENT GENERATION UNDER PMRY

The estimated employment generation under PMRY during the

10th Plan period are as under:

(As reported by RBI)

Year Target Applications Cases Sanctioned Cases Disbursed

(No.) Received No. Amount No. Amount

(Rs. crore) (Rs. crore)

1 2 3 4 5 6 7

2002-2003 220000 414001 228031 1497 190521 1198

2003-2004 220000 436679 264012 1679 219444 1368

2004-2005 250000 490229 297187 1915 239399 1471

2005-2006

(upto Nov. 2005) 250000 224919 99204 636 56812 342

Total: 940000 1565828 888434 5727 706176 4379

(Employment in number)

Year Estimated Empl. Generated

2002-2003 2,85,782

2003-2004 3,29,166

2004-2005 3,59,099

2005-2006* 85,218

Total 10,59,265

* up to November 2005.

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PMRY beneficiary

5.11.0 BUDGETARY ALLOCATION AND EXPENDITUREUNDER PMRY

The Central Government assists the entrepreneurs through

capital subsidy and provides funds to States for entrepreneurial

development, contingencies, etc. The details of budget

allocations and expenditure incurred under the Scheme during

the Tenth Plan period are as under:

(Amount Rs. crore)

Year Budget Funds Released

Allocation

Subsidy Entrepreneurial Total

Development 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 27.69 218.17

2005-06* 273.46 194.20 20.41 214.61

*Upto January 2006

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5.12.0 EVALUATION STUDIES OF PMRY

5.12.1 Two rounds of evaluation (first round conducted in 1996-97 for

the programme years 1993-94 and 1994-95 and second round

conducted in 2000-01 for the programme years 1995-96 to

1997-98) of the PMRY have been conducted by the Institute of

Applied Manpower Research (IAMR), New Delhi. The third

round of the evaluation has been carried out for 1998-99 to

2001-02 through the IAMR. The report submitted in December

2005 is under examination.

PMRY beneficiaries

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5.12.2 A comparative position of some of the important findings of

these three rounds of evaluation indicates:

- The share of SC/STs as well as OBCs has steadily

improved. The proportion of SC/STs improved from

about 12 per cent in the first round to 13 per cent in

the second and 21 per cent in the third. Similarly, the

share of OBCs increased from 21 per cent to 26 per

cent. However, the share of women has not shown

much improvement (11 per cent in the first round, 14

per cent in the second and 13 per cent in the third

round).

- The average amount of loan disbursed has been

increasing. It was Rs. 57000 in the second round and

Rs. 64000 in the third round.

- The employment generation was higher in the first round

at 2.5 per unit. In the second and third round it is found to

be around 1.95 per functioning unit.

- The proportion of rural beneficiaries has come down from

49.9 per cent in the second round to 39.1 per cent in the

third round.

- Assets have been created in 89.7 per cent of the cases

disbursed.

- About 36.4 per cent of beneficiaries were repaying the

loan installment on time.

- The average rate of recovery of loans was 29 per cent in

the second round. It improved to somewhat 38 per cent

in the third round.

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5.13 INITIATIVES TAKEN FOR STRENGTHENING OFPMRY

5.13.1 The ‘Training Curricula’ and ‘Methodology of Training’ under

the PMRY has been comprehensively revised in consultation

with the Rural Development & Self Employment Training

Institute (RUDSETI), Ujire, Karnataka and circulated to all State

Governments. The training manual is extremely useful as it

illustrate why the session, session objectives, duration, training

aids, method of delivery, tips to the trainer, process of handling

the sessions, handout for the trainer, simulation games, case

studies, role plays, illustrative cases and exercises. It is

expected that this manual would proof to be a valuable resource

for the trainer in training the PMRY beneficiaries for successfully

setting up self-employment units.

5.13.2 The quarterly schedule for sponsoring and sanctioning of

applications and disbursement earlier provided that while the

sanctioning of the cases would be completed in hundred per

cent cases by the end of the financial year, the hundred per cent

disbursement in all such sanctioned cases would be completed

by the end of the first quarter of succeeding year. This period for

loan disbursement used to be further extended up to second or

third quarter. In the quarterly schedule fixed for the year 2005-

06, it has been directed that applications to the extent of 125 per

cent of the target would be sponsored by the end of the third

quarter ( 100 per cent by the end of the second quarter), loans

would be sanctioned in 90 per cent of the sponsored cases by

the end of the third quarter (100 per cent by the end of 4th quarter).

The quarterly schedule further prescribes that loans would be

disbursed in 75 per cent cases by the end of the third quarter

and the loan disbursement in the entire target of 100 per cent

cases would be achieved by the end of 4th quarter. The RBI has

also issued instructions to all implementing banks reiterating the

above decision of the Government.

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This new pattern of quarterly schedule of sponsoring,

sanctioning and disbursement of cases would not only ensure

that the applications are not bunched in any quarter, but would

also ensure that the entire target is achieved in the financial

year itself.

5.13.3 Several suggestions were received from State Governments

for change in various parameters of PMRY to make it more

effective. These included increase in family income ceiling,

project cost ceiling, increasing subsidy for individuals, raising

the training cost reimbursement per beneficiary, etc. In order

to consider all the suggestions, the Government of India

constituted a Committee under the chairmanship of Adviser

(VSE), Planning Commission, Government of India. The

Committee has been asked to review the Design and

Implementation practices of the PMRY and also introduce better

practices in its implementation. The report of the Committee is

awaited. Further necessary action for strengthening the PMRY

would be undertaken as soon as the report is received.

5.14.0 NATIONAL PROGRAMME FOR RURALINDUSTRIALISATION (NPRI)

5.14.1 This Ministry has been implementing for the 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.

5.14.2 The Ministry has reviewed the National Programme for Rural

Industrialisation Programme (NPRI) and decided to subsume

this under the Scheme of Fund for Regeneration of Traditional

Industries (SFURTI), which provides a much more

comprehensive approach to cluster development.

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ARI ACTIVITIES IN THE NE REGION

6.1 The North Eastern (NE) Region consists of the 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 topographical features, poor infrastructure, etc.

6.2 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 include Prime Minister’s Rozgar

Yojana (PMRY), Rural Employment Generation Programme

(REGP), schemes relating to khadi activities and schemes

relating to promotion of coir and coir products.

6.3 KVI PROGRAMMES IN NORTH EASTERN STATES

6.3.1 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.

6.3.2 KVI programmes are being implemented in these areas through

State KVI Boards, registered institutions, cooperative societies

and entrepreneurs.

6.3.3 The village industries which are being set up in this hilly and

backward areas are pottery, beekeeping, processing of cereals &

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pulses, fibre, fruit & vegetable processing industries, soap, activities

like carpentry and blacksmithy and also khadi and polyvastra.

6.3.4 The programmes of KVIC for rural industrialisation is expected to

further increase the earnings of artisans, weavers, spinners and

individuals entrepreneurs and also output of high quality KVI

goods from this region. This will also help to reduce drudgery in

the labour intensive activities, ensure optimum utilisation of locally

available raw materials and the up-gradation of skill of artisans.

6.3.5 For the development of NE Region, the Ministry has earmarked

separate budget allocation for KVI programmes. The funds

released to KVIC under Plan for the NE Region during 2004-

2005 was Rs. 34.90 crore and in 2005-06 Rs. 31.54 crore have

already been released (up to January 2006). For the period

2006-07, a budget provision of Rs. 60.60 crore has been made.

6.3.6 Over the years there have been considerable increase in

production and employment in the KVI sector in the NE Region.

The achievements made in terms of production and

employment in the KVI sector during the first three years 10th

Plan period are as under:

(Production value: Rs. lakh)(Employment: lakh persons)

S. States 2002-2003 2003-2004 2004-2005No. Prod. Emp. Prod. Emp. Prod. Emp.

1 ArunachalPradesh 317.88 0.01 524.67 0.01 794.55 0.03

2 Assam 6074.74 1.22 8368.55 1.39 9576.05 1.65

3 Manipur 5997.52 0.62 6197.16 0.62 6520.07 0.64

4 Meghalaya 3100.46 0.25 3709.57 0.27 4495.16 0.31

5 Mizoram 3769.44 0.23 3936.02 0.24 4648.13 0.29

6 Nagaland 4583.94 0.30 4962.48 0.32 5715.15 0.35

7 Tripura 2235.29 0.28 3145.11 0.33 3350.47 0.37

8 Sikkim 373.51 0.06 767.26 0.08 972.47 0.11

Total 26452.78 2.97 31610.82 3.26 36072.05 3.75

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6.3.7 To cater to the needs of skill development in NE Region, a

multi-disciplinary training center at Doimukh, Arunachal

Pradesh, Multi Discipl ine Training Centre, Kohima,

Nagaland, Multi Disciplinary Training Centre, Aizwal,

Mizoram are being run by a KVIC assisted institution. In

addition, another training center is being run by a registered

institution at Rembark in Mizoram, Khadi Gramodyog

Vidyalaya, Nalbari Assam, Kumrikata Assam. Further, the

Assam State KVI Board and Mizoram KVI Board are also

operating training centres in their respective areas of

operation. Under Training programme, the candidates from

NE Region are provided second class Railway fare for

attending training programmes and also the daily allowance

during the training period. A total of 3416 persons were

trained during the year 2004-05 and 1475 persons in 2005-

06 (up to January 2006).

6.3.8 A number of exclusive sales outlets are functioning for

promotion of KVI products in NE Region. The State-wise

numbers of such sales outlets are as under:

S.No States No. of sales outlets

1 Arunachal

Pradesh 09

2 Assam 96

3 Manipur 09

4 Meghalaya 04

5 Mizoram 02

6 Nagaland 07

7 Tripura 02

8. Sikkim 07

Total 136

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6.4.0 RURAL EMPLOYMENT GENERATIONPROGRAMME IN NORTH EASTERN REGION

6.4.1 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

in general 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 of project cost in place of

10 per cent of project cost in other areas.

6.4.2 Special attention has been given for implementation of REGP

in NE States by providing additional funds for conducting

workshops and awareness camps. 24 exhibitions for display

and sale of products manufactured by REGP entrepreneurs

were also organised in the North East Zone up to January 2006.

6.4.3 During the first three years of the 10th Plan, 5755 number of

projects have been set up generating 97060 number of

employment. During the year 2005-06 (up to January 2005),

the number of projects set up in the NE Region alongwith

amount of margin money utilized and employment generated

are as under:

S.No States Project MM utilized Employment(Rs. lakh) generated

(No. of persons)1 Arunachal 51 23.19 1393

Pradesh2 Assam 278 167.67 238683 Manipur 15 0.75 1184 Meghalaya 97 26.19 17785 Mizoram 121 62.53 29146 Nagaland 100 49.38 14757 Tripura 111 44.61 19538 Sikkim 55 23.21 607

Total 828 397.53 34106

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6.5.0 NEW INITIATIVES

6.5.1 To improve the technology used in the KVI sector as also the

quality of products, the KVIC has entered into a tie-up

arrangement with IIT Guwahati as part of its nation-wide

programme for having S&T interfaces with reputed National

level technical institutes. The following areas have been

identified for taking up R&D Programmes 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.

6.5.2 The IIE Guwahati has been recognized as Nodal Agency for

North Eastern Region with the objective to implement and

monitor REGP projects being set up in North East Zone and

imparting training to the REGP beneficiaries.

6.5.3 To and fro transportation charges have been provided to

intuitions and REGP entrepreneurs of North Eastern Region

who are participating in the exhibitions, melas, etc, conducted

in placed other than North Eastern Region.

6.5.4 10 per cent space was reserved in all Departmental Khadi

Gramodyog Bhawans for the products of the intuitions in North

Eastern Region to marketing of their KVI products.

6.5.5 In order to popularise the KVI products like silk fabrics, cane &

Bamboo products, wall hangings, hand woven, wall paintings,

etc., produced in North Eastern Region, 4 Uttarpurva melas

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were organised by KVIC at Metropolitian cities, i.e., New Delhi,

Mumbai, Kolkata and bangalore during 2004-05

6.6.0 COIR BOARD IN THE NORTH EASTERN REGION

The activities carried out by the Coir Board during 2005-06 (up

to January 2006) for popularising coir and coir products in the

North Eastern Region are as under:

• An MoU was signed between Coir Board and IIE,

Guwahati to conduct a study on coir related activities,

existing market and potential for coir based products,

availability of raw material and the scope for starting coir

based activities in the States of Assam, Manipur,

Arunachal Pradesh, Tripura and Nagaland.

Coir Geo Textile Seminar held on 22.2.06 at Guwahati

• In order to popularise coir and coir products in the North

Eastern Region, Coir Board participated in the Tezpur

Expo, Assam, Itanagar Exhibition, 1st Shillong Mega Fair

and 6th National Expo, 2005, Guwahati.

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• Seminars on Coir Geo-textiles were organised by the

Coir Board in Meghalaya, Sikkim, Assam, Tripura and

Nagaland for popularising application of coir geo-textiles

in soil erosion control in North East Region.

6.7.0 PRIME MINISTER’S ROZGAR YOJANA (PMRY)

6.7.1 The Prime Minister’s Rozgar Yojana was launched on 02 October

1993 in the entire country including the North Eastern Region.

Under the scheme, eligible educated youth are provided

assistance to set up tiny units in all economically viable activities.

6.7.2 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 al l economical ly viable activi t ies.

Subsequently, parameters of the scheme were modified

for the entire country with special relaxation for the North

Eastern States as under:

6.8.0 SPECIAL RELAXATION FOR NORTH EASTERNSTATES

6.8.1 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.

6.8.2 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).

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6.8.3 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).

6.9.0 PROGRESS OF THE SCHEME

The State-wise targets and the progress of the scheme in the

North Eastern States in the last three years, viz, 2003-04, 2004-

05 and 2005-06 (up to November 2005) as reported by Reserve

Bank of India (RBI) are given at Table - I.

TABLE I

ACHIEVEMENT IN NORTH EASTERN STATES IN RESPECT OF PMRYDURING 2003-04, 2004-05 and 2005-06 (UP TO NOVEMBER 2006)

Cases Cases Cases Cases Cases CasesS.No. States Target sanctioned disbursed Target sanctioned disbursed Target sanctioned disbursed

2003-04 2004-05 2005-06* (up to November 05)

1 Assam 6600 7501 5844 7500 10300 4785 7387 3644 2899

2 Manipur 1200 595 520 1500 440 270 1418 06 04

3 Meghalaya 350 453 403 400 597 555 361 75 68

4 Nagaland 300 68 53 400 897 109 363 130 128

5 Tripura 800 2494 2043 1000 2126 1689 1193 1431 1200

6 ArunachalPradesh 200 685 668 200 443 133 173 23 04

7 Mizoram 200 788 775 200 144 142 188 0 0

8 Sikkim 100 31 30 100 37 32 66 08 07

Total 9750 12615 10336 11300 14984 7715 11149 5317 4310

Source: RBI*Provisional

Note: Employment Generation is estimated at the rate of 1.5 person per case disbursed

6.10.0 CONTINGENCY FUNDS

The funds for contingency are released to the State/UTs @

Rs. 250/- per beneficiary sanctioned loan. So far from the period

2003-04 to 2005-06, as on 31 January 2006, an amount of

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TABLE-II

Statement of funds released to North-Eastern States under PMRY for training andContingency during 2003-04, 2004-05 and 2005-06 (up to January 2006)

(Rs. in thousand)

Sl. State/UT 2003-04 2004-05 2005-06No. (up to Jan.06)

1 2 3 4 5

1 Assam 5897.150 10071.050 7780.250

2 Arunachal Pradesh 346.800 539.448 453.538

3 Manipur 557.00 454.800 12.940

4 Meghalaya 709.621 829.150 822.000

5 Mizoram 360.500 324.300 822.000

6 Nagaland 100.050 1712.250 1680.000

7 Tripura 1822.950 2124.400 2269.700

8 Sikkim 47.700 24.600 88.850

Total 9841.771 16079.998 13929.278

Rs. 3.98 crore has been released to North Eastern States

including Sikkim for training and contingency etc. State-wise

details of funds released to North Eastern States including

Sikkim from 2003-04, 2004-05 and 2005-06 (as on 31 January

2006), are given at Table II.

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Chapter

7

SUMMARY OF THE C&AG REPORT

Avoidable excess payment of Interest Subsidy:

Khadi and Vil lage Industr ies Commission paid an

additional interest subsidy of Rs.1.03 crore for bank

finance availed by directly aided institutions due to its

failure to revise the provision of the Interest Subsidy

Scheme.

[Para 14.1 of Report No.4 of 2005]

Autonomous Bodies

7.1.0 OBSERVATION

7.1.1 The Interest Subsidy Eligibility Certificate (ISEC) Scheme

is the major source of funding for khadi programme. It was

introduced in May 1977 to mobilise funds from banking

institutions to fill the gap in the actual fund requirement and

its availability from budgetary sources. Under the ISEC

Scheme, credit at the concessional rate of interest of 4 per

cent per annum 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. The funds for this purpose are provided by

the Government under budget sub-head khadi grant of

KVIC.

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7.1.2 During audit it was observed that the KVIC had issued Interest

Subsidy Eligibility Certificates to one of its directly aided

institutions viz Shri Mahila Griha Udyog Lijjat Papad against

which the institution availed bank finance of Rs. 5.90 crore

during 1998-99 and 1999-2000 and Rs. 7.90 crore during the

period 2000-01 to 2003-04 from three different banks at varying

rates of interest.

7.1.3 The rates charged by the three banks namely, Bank of Baroda,

Bank of India and Dena Bank for the period April 2002 to

March 2004 were 0.5 per cent to 2 per cent, 1.36 per cent to

2.6 per cent, 3.06 per cent to 4 per cent higher than the prime

lending rates fixed by the respective banks. Hence, the

Commission had to bear excess interest liability of Rs. 38.70

lakh for the period 2002-03 and 2003-04. Further, considering

the average difference in rates of interest, the excess payment

of interest subsidy for the period 1998-99 to 2001-02 worked

out approximately Rs. 64.47 lakh. Thus failure of the

Commission to harmonise the scheme with the deregulated

interest rate regime resulted in excess payment of interest

subsidy amounting to Rs. 1.03 crore for the period up to March

2004 on account of bank finance provided to only one

institution.

7.2 REPLY

7.2.1 The Mahila Griha Udyog Lijjat Papad had raised bank finance

from 3 banks instead of one bank as maximum permissible

bank finance limit of the local branch was not sufficient to meet

the financial need of the institution to full extent. However, the

banks provided loan to the institution at different interest rates

resulting in excess payment of Rs. 1.03 crore. The bank-wise

and year-wise excess payment made on account of difference

in interest rate were as under:

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7.2.2 As regards the issue of charging excess rate of interest by

Dena Bank it is to state that each bank has its own set of

guidelines for charging rate of interest for different type of

advances. KVIC had taken up the matter with the Reserve Bank

of India, who in turn replied that due to liberalization and

relaxation of lending norms by RBI for fixing the interest rates,

banks are free to devise their own guidelines for fixing lending

rates for credit limit over Rs. 2.00 lakh. While fixing the interest

rate, the banks also take into account evaluation and credit

rating of the entity to whom loan is to be given. Accordingly

three different lending rates were arrived as under:

YEAR 2002-03

Name of the Bank Rating Rate of interest

Bank of India AA 14.60%

Bank of Baroda AAA 13.50%

Dena Bank B 16.25%

7.2.3 Further, it has also been observed that when Dena Bank joined

the consortium in 1995, the rate of interest was 19.25 per cent

per annum i.e. same rate as charged by the lead bank, State

Bank of India. However, subsequently the rate of interest

charged by Dena Bank was less in view of their own bank

(Rs. lakh)

Year Bank of India Dena Bank Bank of Baroda

1998-1999 11.26 20.40 4.94

1999-2000

2000-2001 8.52 3.19

2001-2002 7.32 8.84

2002-2003 14.61 17.68 6.41

2003-2004

Total 41.71 46.92 14.54

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norms. Moreover the rate of interest of Dena Bank was lowest

in 1998 i.e. 17.60 per cent as against 18 per cent and 19 per

cent charged by Bank of Baroda and Bank of India respectively.

7.2.4 Further, the point made by audit that KVIC being the

organization bearing the financial burden of higher rates should

have negotiated for lower rates is well taken, but to calculate

such notional loss is not wholly correct as negotiations with

banks may or may not have resulted in charging of lower interest

rates. It cannot be said with certainty that the banks would

have agreed to lend at the lower rates, as being the public

sector banks, they also have to be satisfied that their lending

rates are as per the lending norms of their banks and RBI

guidelines.

7.2.5 The KVIC on its part has again made efforts and advised all

the three banks lending to this institution to charge single rate

of interest based on the common credit evaluation and credit

ratings. A meeting was also held between the representatives

of KVIC, three banks and President of Shri Mahila Griha Udyog

Lijjat Papad on 12 July 2005. In the meeting the bank officials

explained the reason for variation in the interest rate on the

loans being provided to the institutions and assured that they

will consider suggestion made by KVIC while working out single

uniform rate of interest.

7.2.6 It is now hoped that the banks would agree to the request of

KVIC and charge one single rate of interest considering that

they are lending to a KVIC aided institution which is helping a

large number of women workers under it to earn a decent

livelihood, even though as per the liberalised lending regime

banks are free to decide their own lending rates.

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USE OF OFFICIAL LANGUAGE

8.1.0 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.

8.2.0 COMPLIANCE TO SECTION 3 (3) OF THEOFFICIAL LANGUAGE ACT, 1963

All documents such as Resolutions, general 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.

8.3.0 REPLIES TO HINDI LETTERS

All letters received in Hindi were replied in Hindi only.

8.4.0 CORRESPONDENCE IN HINDI

Letters to State Governments, Union Territories and their offices

and offices of the Central Government located in region ‘A’ and

Chapter

8

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‘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 90.87 per cent

correspondence were made in Hindi in region ‘A’, 85.64 per

cent in region ‘B’ and 81.65 per cent in region ‘C’ up to the

quarter ending December 2005.

8.5.0 SECTIONS SPECIFIED FOR WORKING IN HINDI

Sections, notified for doing hundred per cent work in Hindi, are

working satisfactorily.

8.6.0 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

ensure use of Hindi and compliance of the Official Language

Policy.

8.7.0 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).

8.8.0 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.

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8.9.0 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-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.

8.10.0 HINDI MONTH

Hindi month was celebrated from 14 September 2005 to 13

October 2005 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 this period,

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.

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VIGILANCE ACTIVITIES

9.1.1 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;

Chapter

9

98


• 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.

9.2.0 COIR BOARD

The Coir Board, Cochin is an autonomous body under Ministry

of ARI. The Vigilance work in Coir Board, Cochin is looked

after by a part-time Chief Vigilance Officer appointed with the

concurrence of CVC.

9.3.0 KHADI AND VILLAGE INDUSTRIESCOMMISSION, MUMBAI

The KVIC, Mumbai is a statutory organisation under the M/o

ARI. The vigilance unit in KVIC is headed by a full-time CVO

appointed on the advice and concurrence of CVC.

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. .

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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. The entry system has been tightened and the

enquiry-slip-system has been revitalised.

vii) In order to make officers conscious of the provisions of

Conduct Rules, concerned Rules/Instructions are

reiterated from time to time to them.

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CITIZENS’ CHARTER

10.1.1 This Charter is a declaration of the Ministry, incorporating

policies, missions, commitments for the small scale

entrepreneurs and for the people of India in general.

10.2.0 MINISTRY OF AGRO AND RURAL INDUSTRIES

The Ministry of Agro and Rural Industries is responsible

for designing and formulation of policy, for promoting the

growth of village and cottage industries, tiny and micro

enterprises in the country. The actual implementation of

the policy is done by the Ministry through the Khadi and

Village Industries Commission (KVIC) and the Coir Board.

The Prime Minister ’s Rozgar Yojana (PMRY) of this

Ministry is implemented through the District Industries

Centres (DICs) of the States/Union Territories (UTs) and

banks, in the rural areas as well as urban areas. The

organizations of the Ministry have their own Citizen’s

Charter.

10.3.0 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 organisations for the benefit

Chapter

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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.

10.4.0 OUR VALUES

We are committed to efficient and prompt service with

transparency and courtesy in dealing with citizens.

10.5.0 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.

10.6.0 STANDARD FOR GENERAL PROCEDURE

The correspondence, letters received by the Ministry will be

acknowledged in 15 days.

10.7.0 RESPONSIBILITIES OF OUR CITIZENS

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.

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10.8.0 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.

10.9.0 GUIDANCE AND HELP

The information and Facilitation Counter of the Ministry located

on the Ground Floor, Gate No.4, Nirman Bhavan, New Delhi

provides 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 011-23062219.

10.10.0 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 and phone 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.23062219

II) Grievance Cell

Director, Ministry of ARI

Room No. 275-D, Udyog Bhavan,

New Delhi –110011

Tel. No.: 23062745

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10.11.0 RIGHT TO INFORMATION ACT

In order to promote transparency and accountability in the

working of every public authority and to empower the citizens

to secure access to information under the control of each public

authority, the Government of India has brought out “The Right

to Information Act, 2005”. In accordance with the provisions of

section 4(1) (b) of this Act, the Ministry of Agro and Rural

Industries, Government of India has brought out a handbook

for information and guidance of the stakeholders and the

general public and hosted the same on the website of the

Ministry i.e. http.//ari.gov.in. In terms of section 5(2) of the Right

to Information Act, 2005, Shri Ashutosh Mishra, Director in the

Ministry has been designated as Central Public Information

Officer (CPIO) for all matters concerning the Ministry. The

address and phone number of the CPIO is as under:

Shri Ashutosh Mishra

Director, Ministry of ARI

Room No. 275-D, Udyog Bhavan,

New Delhi –110011

Tel. No.: 23062745

Two organisations, namely, the Khadi and Village Industries

Commission and the Coir Board, which comes under the

administrative control of this Ministry, have also designated their

CPIOs in respect to their organizations and the field offices

under them. The details of CPIOs designated by the KVIC and

the Coir Board is available on their websites www.kvic.org.in

and www.coir-india.com. The addresses and phone numbers

of the CPIOs designated for the head offices of the KVIC and

the Coir Board are as under:

(i) Shri P.R. Brahmane,

Director,

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104


KVIC, Central Office,

3, Irla Road, Vile Parle (West),

Mumbai - 400056.

Tel.: 022-26235728

(ii) Shri P. Ajid Kumar,

Joint Director,

Coir Board,

Coir House, M.G. Road,

Kochi - 682016.

Tel: 0484-2362751

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Documents

Cover final - msmedihimachal.nic.in · 2 Annual Report 2005-2006 1.2.0 ORGANISATION OF THE MINISTRY The Ministry deals with the khadi and village and coir industries through the Khadi