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ENHANCING PRODUCTIVITY AND COMPETITIVENESS OF KHADI INDUSTRY AND ARTISANS SCHEME

ENHANCING PRODUCTIVITY AND COMPETITIVENESS

OF KHADI INDUSTRY AND ARTISANS SCHEME

 

1.  Background:-

Khadi, the fabric of freedom, has been a source of livelihood to a large number of spinners, weavers and other artisans spread across the country, living in the rural as well as urban areas. The Khadi Programme is being implemented by KVIC and State Khadi & V.I. Boards, through the nation-wide network of registered institutions, cooperative societies and Trusts. KVIC used to provide funds to these Khadi institutions out of the budgetary source of Government of India for creation of infrastructure and for Working Capital requirements. But subsequently, the fund from the budgetary source has been discontinued and therefore, no fund has been provided to the institutions for infrastructural support and Khadi institutions are working with the age old implements. Though handcrafted characteristic is the Unique Selling Proposition (USP) of Khadi, use of appropriate technological implements plays a vital role, in achieving better productivity and quality, besides reducing drudgery. Sustainability of traditional khadi industry is largely dependent on provision of facilities, so that the artisans’ productivity is enhanced and competitiveness of the activity is maintained.

KVIC has taken several steps in the recent years to transform the Khadi sector and make it more vibrant. The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) has infused tremendous enthusiasm among the Khadi and Village Industries Institutions.  It was observed that the support available under SFURTI needs to be carried to every nook and corner of the country, so as to bring the entire Khadi sector within the ambit of transformation.  Accordingly, the instant scheme was approved, which envisages a comprehensive support to around 200 Khadi Institutions, in order to make khadi industry more productive as well as competitive and also strengthen its potential for creation of qualitative employment.  The Govt. of India has approved the ‘Enhancing Productivity and Competitiveness of Khadi Industry and Artisans’ during the 11th Five Year Plan period and launched during the year 2008-09.

 

2.  Objectives of the Scheme:-

The primary objectives of this scheme are to:

·         Make khadi industry more competitive with more market-driven, profitable, production and sustained employment for khadi artisans and related service providers by replacement of obsolete and old machinery & equipment and repairs to/renovation of existing/operational machinery and equipment.

·         Extend an evenly balanced and need-based support in all areas of Khadi activities viz. production, distribution, promotion and capacity building.

·         Provide appropriate incentives to shift to market driven approach.

The scheme would cover activities up to cloth stage and may not venture into readymade garments.

 

3.  Interventions/Support Measures:-

·         Introduction of new technology and reduction in drudgery in pre as well as post weaving processes.

·         Introduction of need-based dyeing & printing facilities.

·         Production of market-oriented khadi products up to cloth stage, with higher productivity and cost competitiveness.

Market promotion as well as capacity building at various levels and aspects in the functioning of Khadi institution and also engagement of expert manpower for proper implementation of the scheme.

 

4.   Target Beneficiaries:-

The target beneficiaries of this scheme are spinners, weavers, pre-weaving artisans, washer men, dyers & printers, workers of the Khadi institutions, manufacturers of tools & equipments, common service providers engaged in Khadi industry.

 

5.  Pattern of Assistance:-

The following Table illustrates the pattern of financial assistance under the Scheme:

 

S. No.

Component

Funding pattern under the scheme (of total cost)

Category of

Khadi institutions

Govt. Grant

(%)

Institution’s

contribution (%)

1.

Replacement of charkhas and looms

(Average cost - Rs. 12.00 lakhs per institution).

A+, A

75

25

B & C

SC, ST

90

10

NER


2.

Service Centre for warp units, ready to use warps for weaving, Post loom facilities, product testing laboratory etc.

(Average cost - Rs.9.00 lakhs per S.C)

A+, A

75

25

B & C

SC, ST

90

10

NER

3.

Product Development Design

Intervention and Packaging

(Average cost - Rs. 2.00 lakhs per institution)

A+, A

75

25

B & C

SC, ST

90

10

NER

4.

Market Promotion Assistance

(Average cost - Rs. 8.00 lakhs per institution)

All categories

90

10

5.

Capacity Building Measures

(Average cost - Rs. 5.00 lakhs per institution)

All categories

90

10

6.

Techno-managerial Support

(Average cost - Rs. 5.00 lakhs per institution)

All categories

90

10

7.

Reporting, documentation,

Studies etc.  (Lump sum Rs. 1.00 lakh)

All categories

100

-

           

 

It is reiterated that the scheme is restricted for activities up to cloth stage only.

 

6.  Objectives of the Assignment:-

i)              To study and evaluate the performance of the scheme by taking into consideration all the objectives of the scheme and Interventions/Support Measures provided, so as to bring in further improvements in implementation of the scheme.

ii)            To study and assess to what extent the KIs are producing competitive, market-oriented products and generating sustained employment opportunities for Khadi artisans as per the guidelines by:

a)            Replacement of obsolete and old machinery & equipment

b)           Repairs to/renovation of existing/operational machinery & equipment

c)                   Servicing centres/warping units, ready to use warp for weaving, testing etc.

d)           Product development, Design Intervention & Packaging

e)            Market Promotion Assistance

f)                    Capacity building & techno-managerial support

iii)          To study the facilities extended under the scheme towards service centres/warping units, ready to use warp for weaving, testing etc.

iv)          To study the achievements made after introduction of Product Development, Design Intervention & Packaging, Market promotion assistances, Capacity building, techno-managerial support etc. as per the scheme guidelines.

v)            To assess the improvement in the efficiency of the artisans due to better workplace/implements and thereby the productivity of the artisans and to assess the overall impact of the scheme on performance of the implementing institutions.

vi)          To study the utilization of funds by the institutions vis-à-vis sanctioned projects/scheme guidelines and whether the funds have been utilized for the purpose for which it has been given.

vii)        To study as to why the institutions in other part of the country have not availed the benefit of the scheme.

viii)      To assess all the interventions made in the khadi institutions and impact thereof.

ix)          To assess the impact of the scheme in terms of improvement in productivity, design development, waste minimization, value addition and benefit accrued by khadi institutions/artisans etc.