KVIC gets Rs 930 cr, creates 13% more jobs in 2013-14

Estimated employment opportunities created by the Khadi and Village Industries Commission (KVIC) - predominantly in the micro, small and medium enterprise (MSME) sector - in rural and urban areas of the country increased by 13 per cent in 2013-14 (as of January 2014), to 140.29 lakh. To boost the sector further the government has released Rs 929.88 crore for it in 2013-14.

According to official data, estimated employment generated (cumulative) in 2013-14 (up to January 31, 2014) by Khadi was 10.89 lakh, while employment generated by village industries was 129.40 lakh, as compared to 10.71 lakh and 114.05 lakh by the two respectively in 2012-13.

Total employment generation was 140.29 lakh as compared to 124.76 lakh.

The promotion and development of cottage industries is mainly the responsibility of the state governments. However, the ministry of micro, small and medium enterprises (MSME) has been supplementing the efforts of state governments by facilitating the promotion and development of khadi, village industries and the coir sector through implementation of a number of schemes to boost the sector and create employment in the non-farm sector,

The KVIC has been implementing various schemes to boost the sector and create employment in the non-farm sector. Funds released to the KVIC for these schemes totalled Rs 929.88 crore in 2013-14, as compared to Rs 1466.20 crore in 2012-13. Funds utilised, including balance funds of previous fiscal, by KVIC was Rs 504.41 crore in 2013-14, as compared to Rs 1,426.43 crore, in 2012-13.

The MSME ministry has already been implementing a credit-linked subsidy programme named Prime Minister's Employment Generation Programme (PMEGP) with the KVIC as the nodal agency at the national level for generating employment for various categories of persons, including war widows, ex-servicemen and their dependents in rural areas in the country by setting up micro-enterprises in the non-farm sector.

Under the PMEGP, general category beneficiaries can avail of margin money subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas. For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, the physically handicapped, beneficiaries belonging to the north-eastern region, hill and border areas, the margin money subsidy is 35 per cent in rural areas and 25 per cent in urban area. The maximum cost of a project is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the services sector.

The government, in order to boost exports of Khadi and Village Industries (KVI) products, has given deemed 'Export Promotion Council' status to the KVIC, under which the KVIC has already enlisted more than 900 exporters. There is a provision for incentives in the form of five per cent FOB value of direct export of KVI products. Besides, KVIC has also been focusing on quality participation in international exhibitions and buyer-seller meets abroad to tap new and emerging markets for KVI products.

KVIC, with assistance from the Asian Development Bank, has been implementing a comprehensive Khadi Reform and Development Programme (KRDP) wherein provision has been made to improve marketing of KVI products by setting up a Marketing Organisation with private participation.