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Empowering Khadi & Gramodyog in UP

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Empowering Khadi & Gramodyog in UP

For holistic development of Khadi and Village Industries in the state, the Uttar Pradesh Khadi and Village Industries Board was constituted. This aims to create maximum employment opportunities by establishing a small industry with low capital investment and strengthening the rural economy, writes Arpit Gupta of Elets News Network (ENN).

The Government of Uttar Pradesh has always kept the development of the rural economy as one among the priorities. Therefore, many significant steps have been taken to uplift the khadi and village industries in the state. Keeping in alignment with state government’s vision, the UP Khadi and Village Industries Board has taken a new initiative for the marketing of products produced by the financially aided/ registered institution working in different areas of khadi and village industry sector.

Progress in Marketing of Khadi & Rural Products

In the financial year 2019-20, UP Khadi and Village Industries Board with the help of Khadi society /entrepreneurs have successfully supplied 60,000 woollen Khadi blankets worth Rs 2.5 crore to different government departments weaved by weavers in Khadi working societies/ institutions. These blankets will be distributed to economically poor people free of cost by the government in Disaster Assistance (Aapda Rahat). It generates employment to traditional/new weavers who are working in rural areas.

Moreover, the Board with the help of different Khadi institutions has successfully supplied more than 2,00,752 Khadi school uniforms to different schools under the “Sarva Shiksha Abhiyan”, which generated the revenue of Rs 6,02,25,600. The spinning of Khadi yarn for weaving school uniforms is done by rural women on “Solar Charkha”. This provides employment to rural artisans and ensures earning at the village level.

Apart from this, the board has successfully supplied around 2.17 lakh Khadi school uniforms to different schools under the “Sarva Shiksha Abhiyan”, which generated the revenue of around Rs 6.5 crore. The women in villages played a crucial role as they spun the yarns on “Solar Charkha” for the production of school uniforms. This provides employment to rural artisans even during the Covid-19 situation and ensures earning at the village level.

In order to provide e-commerce platforms to Khadi institutions and different village industries, the UP Khadi and Village Industries Board had signed an MoU with Amazon and Flipkart. Leveraging this platform, rural enterprises are able to present their product to global customers. Through an online e-commerce platform, in the financial year 2019-20 there was a sale of Rs 32 lakhs and in the following fiscal year 2020-21, there was a sale of Rs 22 lakh till December 1, 2020.

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In an effort to aid the village artisans, the Board supplied more than 2 lakh metre khadi cloth for making “Khadi face mask” during the COVID-19 pandemic. The masks were prepared by Self Help Group (SHG) members in rural areas of Uttar Pradesh. Further, the Board is planning to collaborate with Raymond for the supply of Khadi cloth as per their specification. The move is expected to revive the Khadi institutions and promote “Khadi” on the global market.

UP Khadi and Village Industries Board – Supportive Schemes

Khadi Vikash Yojna ‘Khadi Vikash Yojana’ or translated as Khadi Development Scheme has an important place in the industrial development of economically backward states. In Uttar Pradesh, 80 per cent of the rural population is based on agriculture and Khadi for them is an additional source of income thereby creating an opportunity for additional employment for the rural artisan and labour in the villages.

Presently, Khadi Vikash Yojna is being implemented in the state by providing assistance from the state government and Khadi and Village Industry Commission to registered institutions/societies and individual entrepreneurs. This scheme is the only source of providing employment to more people in small investment.

CM Village Industries Employment Scheme

With a view to discourage the migration of rural educated youth to the urban areas and to solve the problem of unemployment, the CM Village Industries Employment Scheme was introduced. Under this, the rural individual entrepreneurs are being provided financial assistance to the tune of Rs 10 lakhs by the banks over and above the rate of interest of at four per cent which is subject to 10 per cent will be borne as the Interest Subsidy for general candidates and for the reserved categories like SC/ST, OBC, Women, ex-serviceman, PH/VH, the rate of interest will be fully exempted and borne by the government of Uttar Pradesh as interest subsidy.

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In Districts, the scheme will be implemented by Khadi & Village Industry board under the direct control of District Magistrate. The scheme will remain in operation for a period of five years from the date of issue of notification as a statesponsored scheme. Moreover, under this scheme, entrepreneurs will be benefited mainly on the following merits.

  • Preference will be given to the candidates trained by Industrial Training Institute/Polytechnic.
  • Educated unemployed youth whose age for Govt. service has expired.
  • A candidate trained under TRYSEM and any other Govt. scheme.
  • Traditional artisan
  • Those women who are interested in self-employment.
  • Candidates passed commercial education [10+2 with village industry as a subject.]
  • Those registered with the Employment Exchange of the concerned district.

Training Scheme

A Skill improvement training program implemented by the UP Khadi and Village Industry Board is provided to selected beneficiaries under the scheme for the improvement of skill inherent in them. The 15-day training is provided under a skill improvement training program for upskilling and promotion of the workforce and promotion. Detailed information about the production process to sales is provided to the beneficiaries under the scheme so that they can easily indulge in selfemployment. The training is provided with the objective that the entrepreneur can develop his skill through it and set up his business either by investing his own capital or through financial assistance by a government agency so that his economic development can be possible.

Scheme of Funds for Regeneration of Traditional Industries (SFURTI)

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The objectives of the scheme are as follows:

  • To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale.
  • To provide sustained employment for traditional industry artisans and rural entrepreneurs.
  • To enhance the marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing infrastructure.
  • To equip traditional artisans of the associated clusters with improved skills and capabilities through training and exposure visits.
  • To make provision for common facilities and improved tools and equipment for artisans to promote optimum utilization of infrastructure facilities.
  • To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner.
  • To build up innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships (PPP), so as to gradually replicate similar models of cluster-based regenerated traditional industries.
  • To look for setting up a multi-product cluster with an integrated value chain and a strong market-driven approach for viability and long term sustainability of the cluster.
  • To ensure convergence from the design stage with each activity of the cluster formation and operations thereof.
  • To identify and understand the cluster’s target customers, understand their needs and aspirations and develop and present product lines to meet the requirement. The substantial focus should be on the buyer segment that places a premium on natural, eco-friendly, ethically sourced and the uniqueness of the Khadi and Village and Industries products.
  • To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment. A brand unification exercise also needs to be done to maximize the value.
  • To make a paradigm shift from a supply-driven selling model to a market-driven model with the right branding, focus product mix and correct positioning and right pricing to make the offering holistic and optimal for each of the focus categories.
  • To tap e-commerce as a major marketing channel given the outreach and the growing market penetration of e-commerce, there is a need to devise a quick strategy to make its presence felt in the e-retail space.
  • To make a substantial investment in the area of product design and quality improvement. There is a need to standardize the quality of inputs and processes so that the products meet the quality benchmarks. Research needs to be done to develop new textures and finishes to cater to the prevailing market trends.

The scheme would further cover three types of interventions namely ‘soft interventions’, ‘hard interventions’ and ‘thematic interventions’.

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