core sector communique

Facilities and Affordable Technologies

Khadi and Village Industries Commission (KVIC) undertakes various schemes and programmes for the holistic development and promotion of khadi and village industries which includes reaching to the grassroots level and providing facilities and affordable technologies. Mahatma Gandhi Institute for Rural Industrialization (MGIRI) at Wardha, a national-level institute, undertakes research, design and extension activities in the rural industries sector. KVIC and Coir Board also implement a specific programme for cluster development, viz. Scheme of Funds for Regeneration of Traditional Industries (SFURTI), under which assistance for replacement of obsolete equipment, setting up common facilities centres, product development, market promotion and other support are provided. So far, 76 clusters in khadi and village industries sector and 20 clusters in coir sector have been developed. In addition, the Ministry of Micro, Small and Medium Enterprises is also implementing the Prime Minister’s Employment Generation Programme (PMEGP) for setting up micro-enterprise in the non-farm sector. Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe/women the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector. So far, 1.66 lakh projects have been assisted under PMEGP with margin money subsidy of Rs.3062.40 crore, creating employment opportunities for an estimated 16.10 lakh persons.