UP to promote khadi units

The UP Khadi and Village Industries Board (UPKVIB) has come up with proposals to be implemented in the Eleventh Five-Year Plan (2007-2012) for rural industrialisation and employment generation.

The UPKVIB, established in 1967, is to provide training to the rural poor and help them to set up village industries.

In the Tenth plan period (2002-03 to 2006-07), the board envisaged a growth rate of 12 per cent per annum, providing employment to 250,000 people, including traditional artisans.

This was to be achieved by establishing 17,701 industrial units under the Margin Money Scheme and the Interest Subsidy Scheme, both on in districts. However, the results have not been satisfactory.

In conformity with the goal of achieving 8.5 per cent GDP growth and 10 per cent industrial growth, the khadi and village industries sector has to grow at 10 per cent per annum. The board has proposed some schemes, along with expanding the existing ones.

The board has proposed that the average project cost admissible under the Mukhya Mantri Gramodyog Rojgar Yojna (MMGRY) be doubled from Rs 5 lakh to Rs 10 lakh.

In 2005-06, 3,913 units were set up under this scheme, employing 22,000 people. A financial assistance of Rs 63.78 crore was provided.

Under the MMGRY in the Eleventh Plan, 35,000 units have been proposed to be set up.

Under the Margin Money Scheme, however, 1494 units were set up with the help of Rs.76.18 crore providing employment to 25,178 people in the year 2005-06.

Under this scheme, for projects that cost up to Rs 10 lakh, 25 per cent of the cost will be provided by the KVIC as margin money. For projects above Rs 10 lakh and up to 25 lakh, the rate of margin money will be 25 per cent of the project cost, plus 10 per cent of the remaining cost of the project.

"UP has a huge market of khadi and village industries' products but we have not yet tapped its potential. In addition to employment generation programmes like the MMGRY and the Margin Money scheme, we need policies and programmes focusing on marketing," said M T Hamid, principal (planning/coordination), UPKVIB-Lko.

In the coming plan, a new scheme under the name Marketing Development Assistance Program will be introduced.

Efforts will be made to exploit the Rs 11,000 crore rural markets in the form of Rural Hats by way of establishment and promotion of E-hats, Social Entrepren eurs, Mobile Marts and distribution network.