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Government Policies for SSI Units
Government Policies for Village Industry (Special
emphasis on Handloom. Handicrafts and Khadi Sector)
1.0 HANDLOOM SECTOR
1.1 Handloom sector contributes about 30 per cent of the total textile
production in the country. It is the policy of Government to promote
handlooms to sustain employment in rural areas and to improve the
quality of life for handloom weavers.
1.2 Schemes for the handloom sector will be redesigned keeping in mind
the local and regional needs. Constraints of coverage will be removed so
as to include bulk of the weavers who are outside the
corporate/cooperative fold.
1.3 Existing schemes will be re-drawn and suitably revised under three
major heads:
(a) Project Package Scheme: Under this scheme, area-based projects for
product development, up gradation of technology, improvement of marketing
facilities will be drawn up.
(b) Welfare Package Scheme: Number of welfare schemes and quantum of
funds earmarked for them will be substantially augmented.
(c) Organization Development Package: Schemes for participation in the
share capital will be re-drawn under organizational development scheme
for imparting a better management system in the existing state agencies.
1.4 Janta cloth scheme which sustains weavers often on a minimum level
of livelihood will be phased out by the terminal year of the VIII Plan
ad replaced by the omnibus project package scheme under which
substantial funds will be provided for modernisation of looms, training,
provision of better designs, provision of better dyes and chemicals and
marketing assistance.
1.5 A vastly expanded role for the National Handloom Development
Corporation (NHDC) is envisaged. NHDC would be the nodal agency for
increasing the supply of hank yarn and of dyes and chemicals. Spinning
capacity in the co-operative sector will be increased. National
Co-operative Development Corporation will provide more assistance for
this in the form of Seed Money, both for cotton growers spinning mills
and weavers spinning mills.
1.6 For improving marketing of handloom products, a more intensive
implementation of schemes for design and product improvement by national
level publicity, exhibitions, and design exercise will be undertaken. A
special scheme will be drawn up to graduate the handloom production,
which is often of low value items, to high value products suitable for
export markets. This will be done by better design inputs, upgradation
of technology, diversion of weavers from cotton to silk and tassar
weaving. Special projects for modernisation of looms for products
suitable for export markets will be drawn up.
2.0 HANDICRAFTS SECTOR
2.1 The key areas in handicrafts that could contribute towards a faster
pace of rural industrialisation are production and marketing. Schemes
for training and design development and for production and marketing
assistance will be given encouragement.
2.2 Considering the importance of this sector from the point of view of
employment and exports, it is proposed to provide an integrated
development thrust to this sector with a view to enlarging the
production base, thus enhancing the opportunities for employment and
income through crafts as an economic activity and to giving it necessary
inputs for quality improvement and effective marketing support both
internal and overseas. Efforts will be made not only to preserve the
traditional richness of the crafts but to engage the hereditary skills
of the craftspersons to suit modern requirements.
2.3 Emphasis will be given to the following:-
- Extension of services like supply of raw materials, design and
technical guidance, market support, training and procuring of related
materials/inputs in an integrated and area-based manner through the
setting up of craft development centres in identified clusters of
villages.
- Market development support in the form of a package of assistance
through expansion of marketing infrastructure, exhibitions, publicity,
etc., through Central and State Handicrafts Corporations, voluntary
organisations and support to direct marketing activity by craftspersons.
- Expansion of training activities by greater involvement of State
Handicrafts Development Corporations, Co-operatives and voluntary
organisations.
- Measures to sustain an increased exports of handicrafts through new
marketing channels like trading companies, departmental stores, etc.
3.0 OTHER VILLAGE INDUSTRIES
3.1 Government recognise the need to enhance the spread of rural and
cottage industries towards stepping up non-farm employment
opportunities.
3.2 The activities of the Khadi and Village Industries Commission and
the State Khadi and Village Industries Boards will be expanded and the
organisations strengthened to discharge their responsibilities more
effectively.
3.3 There will be greater emphasis on improving the quality and
marketability of the products pari passu with consumer preferences
instead of merely depending on rebates and subsidies.
3.4 While the plan allocation for rural industries will be augmented,
effective steps will also be taken to ensure better flow of credit from
the financial institutions and a more coordinated and optimal
utilisation of different development schemes and agencies operating in
the rural sector. Bankability of projects undertaken in this sector
would be stressed.
3.5 The programmes of intensive development of KVI through area approach
with tie-up with DRDA, TRYSEM and ongoing developmental programmes
relating to weaker sections like Scheduled Castes, Scheduled Tribes and
Women would be extended throughout the country.
3.6 The traditional village industries would be given greater thrust.
Involvement of traditional and reputed voluntary organizations will be
encouraged.
3.7 Agro processing and food processing industries in KVI sector using
appropriate technologies would be promoted with a view to utilize
locally available agricultural produce and promote employment/resource
generation in the countryside.
3.8 Functional industrial estates would be established in areas with
concentration of agricultural/horticultural produce.
3.9 R & D in KVI sector would be strengthened through greater linkages
with CSIR and other research institutions in the areas of production,
finishing/packaging, processes and development of new tools and
implements.
3.10 The training programmes would be upgraded and augmented to cover
the expanded list of industries under the purview of the KVIC.
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