NEW THRUST TO AGRO AND
RURAL INDUSTRIES
The Government has
taken number of initiatives to provide more employment opportunities
in rural areas and to promote the village industries during the
last 3 years. A package has been devised in accordance with the
Government’s prime objectives of creating more jobs in rural areas
and empowering the women and backward classes in the country.
KHADI PACKAGE
New Package for the
Khadi and Village Industry announced in May 2001 to make it viable
and vibrant in the new era of globalisation. The package included
among other things the rebate policy for five years, option for
rebate and marketing development assistance and cluster development
programmes etc. In collaboration with UNDP project amounting to
2.5 million dollars have been launched for bee keeping, pottery,
hand-made papers and capacity building of KVIC. The package addresses
the absence of long term policy, bunching of special rebate leading
to seasonal sale, inadequacy of working capital, poor designs,
quality and products, poor marketing infrastructure and inadequate
protection to artisans. The additional funds to the extent of
Rs. 1215.85 crore will be provided for the programmes under the
package during the next five years.
Rebate Policy
for Five Years
New rebate policy
formulated for a period of five years to boost khadi product.
There would not be any change in normal rebate of 10% throughout
the year, the special rebate, which used to be given @ 10% for
a period of 90 days only has been extended to 108 days on staggered
basis i.e. 7 days in each month and for the whole month of October.
Options of Rebate
and Market Development Assistance
As a measure of giving
incentives to the institutions for producing innovative designs
and marketable products, a new scheme of market development assistance
(MDA) @ 20% of the annual turn over has been introduced as an
option in place of rebate.
Additional Working
Capital
To tackle the problem
of lack of credit, the term loan of Rs. 300 crore given to khadi
institutions is being converted into working capital. Further
a fresh line of credit of Rs. 250 crore as working capital would
be provided to those institutions that are willing to switch from
rebate scheme to Market Development Scheme (MDA).
Insurance Cover
to Khadi Artisans
The provision for
insurance covers for khadi artisans against death, disability
and diseased has been initiated.
Quality Improvement
In order to make
the marketing of khadi products attractive, the focus henceforth
is on quality. National Institute of Design of Ahmedabad, roped
in for better designing and development of khadi products. Mahatma
Gandhi Institute for Rural Industrialisation at Wardha through
linkage with IIT, New Delhi is coming up for product development,
standardisation, quality control and research for khadi products.
The quality of products will be certified through labs accredited
by NABL.
Cluster Development
Programme
In order to strengthen
khadi and rural industry a scheme of cluster development initiated.
At these clusters, common facilities will be created for innovation,
technology upgradation, packaging, processing, testing and
e-commerce. Setting
up of a marketing company for boosting the sales of products both
in India, as well as abroad is also been taken up.
Focus on Core
indigenous Areas
An amount of Rs.
275 crore as assistance has been earmarked for a few selected
indigenous areas, namely, herbal cosmetics and medicines, honey,
organic foods, edible and essential oils. These employment intensive
areas will not only provided financial assistance but also technical
support.
Comprehensive
Policy Package for tiny Sector
The Prime Minister
announced a comprehensive policy package in August, 2000 which
include preferential allocation of plan, power facilities, technological
upgradation, liberal institutional finance support and priority
in Government purchase.
CREDIT SUPPORT
TO TINY SECTOR
Composite loans upto
Rs. 25 lakhs to tiny sector at 1% concessional interest rate by
National Small Scale Industries Corporation is being provided.
The project cost limit has been raised from Rs. 25 lakhs to Rs.
50 lakhs and 30% of the investment earmarked for the tiny sector.
Investment limit
for the tiny sector under Prime Minister’s Rozgar Yojna to generates
employment for the educated unemployed continue to be Rs. 25 lakhs,
the family income eligibility limit of Rs. 24,000/- revised to
Rs. 40,000 per annum.
INFRASTRUCTURAL
SUPPORT TO TINY SECTOR
Integrated Infrastructure
Development (IID) scheme now to cover all areas in the country.
Under the scheme, 50% of the plots earmarked for setting up tiny
sector as against 40% earlier.
TECHNOLOGY AND
MARKETING SUPPORT
Capital subsidy to
tiny sector for technology upgradation organising buyers and sellers
meet, vender development programmes and exhibitions.
COIR SECTOR
The Coir Board has
been reconstituted to provide better infrastrucural support through
cluster development, consortium market and assured supply of quality
raw material. Steps taken for market promotion, technical upgradation,
and skill development through bilateral cooperation with other
coir producing countries. The Board is continuously focusing on
product development and diversification to meet customer preference
through R & D.
