Ministry of Small Scale Industries

From Wikipedia, the free encyclopedia The Ministry of Small Scale Industries (SSI) is a defunct Indian government ministry. It was merged with the Ministry of Agro and Rural Industries to form the Ministry of Micro, Small and Medium Enterprises. The ministry was tasked with the promotion of micro and small enterprises (MSEs). The Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) was created in October 1999. In September 2001, the ministry was split into the Ministry of Small Scale Industries (SSI) and the Ministry of Agro and Rural Industries (ARI). The Ministry of Small Scale Industries merged with the Ministry of Agro and Rural Industries to form the Ministry of Micro, Small and Medium Enterprises in 2007 The Small Industries Development Organization (SIDO) was under the control of the ministry, as was the public sector undertakings National Small Industries Corporation Limited (NSIC). [edit]The

Small Industries Development Organisation

It is the Office of the Development Commissioner for Small Scale Industries. SIDO was established in 1954 on the basis of the recommendations of the Ford Foundation. It has over 60 offices and 21 autonomous bodies under its management. These autonomous bodies include Tool Rooms, Training Institutions and Project-cum-Process Development Centres. Various Services provided by SIDO to the SMEs:     facilities for testing, toolmenting, training for entrepreneurship development preparation of project and product profiles technical and managerial consultancy assistance for exports pollution and energy audits

SIDO also provides economic information services and advises Government in policy formulation for the promotion and development of SSIs. The field offices also work as effective links between the Central and the State Governments.

Khadi and Village Industries Commission

From Wikipedia, the free encyclopedia

Khadi and Village Industries Commission

Abbreviation

KVIC

Formation

1956

Headquarters

Mumbai

Parent organization

Ministry of Micro, Small and Medium Enterprises

Staff

76.78 lakh (2004-2005)[1]

Website

KVIC Official website

The Khadi and Village Industries Commission (KVIC) is a statutory body formed by the Government of India, under the Act of Parliament, 'Khadi and Village Industries Commission Act of 1956'. It is an apex organization under Ministry of Micro, Small and Medium Enterprises (Govt. of India), with regard tokhadi and village industries within India, which seeks to - "plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary."[2]. In April 1957, it took over the work of former All India Khadi and Village Industries Board. [3] Its head office is based in Mumbai, with its six zonal offices in Delhi, Bhopal, Bangalore, Kolkata, Mumbai and Guwahati. Other than its zonal offices, it has offices in 29 states for the implementation of its various programs.
Contents
[hide]

1 Important Terms

1.1 Khadi

1.2 Village Industry

2 Relevance of Khadi and Village Industries 3 Objectives of the Commission 4 Implementation of Schemes and Programs 5 Schemes and Programs of the Commission

o o o

5.1 Prime Ministers Employment Generation Program (PMEGP) 5.2 Interest Subsidy Eligibility Certification Scheme (ISEC) 5.3 Rebate Scheme

6 Budgetary Support to the Commission

o o

6.1 Grants 6.2 Loans

7 Sales of Khadi and Village Industry Products 8 See also 9 External links 10 Notes

[edit]Important [edit]Khadi

Terms

"The livery of freedom" Mahatma Gandhi [4] Khadi, (pronounced Kh d ) refers to handspun and hand-woven cloth. The raw materials may be cotton, silk, or wool, which are spun into threads on a Charkha (A traditional spinning implement). Khadi was launched in 1920 as a political weapon in the Swadeshi movement of Mahatma Gandhi. Khadi is sourced from different parts of India, depending upon its raw materials - While the silk variety is sourced from West Bengal, Bihar, Orissa and North Eastern states, the cotton variety comes from Andhra Pradesh, Uttar Pradesh, Bihar and West Bengal. Khadi poly is spun in Gujarat and Rajasthan while Haryana, Himachal Pradesh and Jammu and Kashmir are known for the woolen variety.

Village Industry
Any Industry that is located within a rural area, where the Fixed Capital Investment per Artisan (weaver) does not exceed Rupees One Lakh[5] The Fixed Capital Investment can be changed by the Central Government of India whenever it so requires.
[edit]Relevance

of Khadi and Village Industries

The common characteristic found in both - Khadi and Village Industries is that they are labor intensive in nature. In the wake of industrialization, and the mechanization of almost all processes, Khadi and Village industries are suited like no other to a labor surplus country like India. Another advantage of Khadi and Village Industries is that they require little or no capital to set up, thereby making them an economically viable option for the rural poor. This is an important point with reference to India in view of its stark income, regional and rural/urban inequalities.
[edit]Objectives

of the Commission

The Commission has three main objectives[6] which guide its functioning. These are   

The Social Objective - Providing employment in rural areas The Economic Objective - Providing salable articles The Wider Objective - Creating self-reliance amongst people and building up a strong rural community spirit.

The commission seeks to achieve these objectives by implementing and monitoring various schemes and programs.
[edit]Implementation

of Schemes and Programs

The process of Implementation of schemes and programs starts at the Ministry of Micro, Small and Medium Enterprises which is the administrative head of the programs. The Ministry receives funds from the Central Government of India, and routes these to the Khadi and Village Industries Commission for the implementation of programs and schemes related to Khadi and Village Industries.[7] The Khadi and Village Industries Commission then uses these funds to implement its programs either directly - Through its 29[8] state offices, by directly funding Khadi and Village institutions and co-operatives, or indirectly through 33[9] Khadi and Village Industries Boards, which are statutory bodies formed by the state governments within India, set up for

the purpose of promoting Khadi and Village Industries in their respective states. The Khadi and Village Industries Boards, in turn, fund Khadi and Village Institutions/Cooperatives/Entrepreneurs. At present the developmental programmes of the commission are executed through, 5600 registered institutions, 30,138 Cooperative societies [10] and about 94.85 lakh people.[11]

Schemes and Programs of the Commission

Prime Ministers Employment Generation Program (PMEGP)
The Prime Ministers Employment Generation Programme (PMEGP) is the result of the merger of two schemes - Prime Ministers Rojgar Yojana (PMRY) and The Rural Employment Generation Programme (REGP) Under the scheme, the beneficiary is required to invest his/her own contribution of 10 per cent of the project cost. In case of Schedule Castes/Schedule Tribes and beneficiaries from other weaker sections, the beneficiarys contribution is 5 per cent of the project cost. The remaining 90 and 95% as of the project cost, as the case may be, is granted by banks specified under the scheme. The Beneficiaries under the scheme are refunded a certain amount of the loan (25% for General, 35% for weaker sections in rural areas) which is credited after two years from the date that the loan was extended.[12]
[edit]Interest

Subsidy Eligibility Certification Scheme (ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is the major source of funding for the 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 this scheme, loans are provided by the banks to the members to meet their working/fixed capital requirements. These loans are provided at a concessional interest rate of 4% p.a.[13] The difference between the actual interest rate and the concessional rate is borne by the commission under the 'grants' head of its budget. However, only members producing Khadi or Polyvastra (a type of Khadi) are eligible for this scheme.
[edit]Rebate

Scheme

The rebate on sales of Khadi and Khadi products is made available by the Government so as to make the price of Khadi and Khadi products competitive with other textiles. Normal rebate (10 per cent) all through the year and an additional special rebate (10 per cent) for 108 days in a year, is given to the customers.[14]

The rebate is allowed only on the sales made by the institutions/centers run by the Commission/State Boards and also at the sales centers run by the registered institutions which are engaged in the production of Khadi and polyvastra. Recently, the finance ministry has asked the micro, small and medium enterprises ministry to redraw its rebate scheme for Khadi and village industries. Its view is that the ministry should approach the plan commission and not seek year-to-year extension of the scheme. Furthermore, it has asked the MSME ministry to redesign the scheme in a manner that it should bene fit the artisan and not the seller, which (has been) the case so far With regard to this, A proposal received from the Commission for introducing Market Development Assistance as a possible alternative to Rebate on Sale is being considered by the Government.[15]
[edit]Budgetary

Support to the Commission

The Union Government through the Ministry of Micro, Small and Medium Enterprises, provides funds to the Commission under two heads: Plan and Non Plan. The funds provided under the Plan Head are allocated by the commission to its implementing agencies. The funds provided under the Non Plan head are mainly for the Commissions administrative expenditure. Funds are provided mainly by a way of Grants and Loans.
[edit]Grants

A major part of the Khadi grant is being utilised for the payment of sales rebate, which is considered a promotional expenditure. Other expenditures under this head are: Training, Publicity, Marketing, Interest Subsidy on bank loans under ISEC scheme
[edit]Loans

Expenditures under this head include: Working Capital Expenditure and Fixed Capital Expenditure Fixed Capital expenditure further consists of expenditure on a) Machinery.....100000 b) Implements....50000 c) Work sheds....25000 d) Sales Outlets etc.25000
[edit]Sales

of Khadi and Village Industry Products

The products produced by the institutions are either sold by them directly, through retailers, wholesalers, or indirectly, through "Khadi Bhandars" (Khadi sales outlets owned by the government) In total, there are 15431[10] sales outlets, out of which 7,050[16] are owned by the commission. These are spread all over India.

The products are also sold internationally through exhibitions arranged by the commission.
[edit]See

also

Ministry of Micro, Small and Medium Enterprises

[edit]External

links

Khadi and Village Industries Commission, Official website

 Official Website Of Ministry of Micro, Small and Medium Enterprises [edit]

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4. Handicraft, more precisely expressed as artisanic handicraft, sometimes also called artisanry, is a type of work where useful and decorative devices are made completely by hand or by using only simple tools. It is a traditional main sector of craft. Usually the term is applied to traditional means of making goods. The individual artisanship of the items is a paramount criterion, such items often have cultural and/or religious significance. Items made by mass production or machines are not handicraft goods. 5. Usually, what distinguishes the term handicraft from the frequently used category arts and crafts is a matter of intent: handicraft items are intended to be used, worn, etc., having a purpose beyond simple decoration. Handicraft goods are generally considered more traditional work, in traditional non-industrial and transitional societies created as a somewhat more necessary part of daily life (in comparison to industrial societies), while arts and craftsimplies more of a hobby pursuit and a demonstration/perfection of a creative technique. In Britain in the late nineteenth century, however, the Arts and Crafts Movement was not a matter of hobbies, but of creating useful as well as creative work for people, using natural materials and traditional techniques. In practical terms, the categories have a great deal of overlap.