Home

Introduction   Organisation   Handlooms & Textiles   Handicrafts   Khadi  Palm   Sericulture  Feedback  Related Links


 

 

Tamil Nadu Khadi and Village Industries  Board

Policy Note for 2002–2003

 Tamilnadu has tremendous employment opportunities in rural Industries.  To tap this potential and to provide employment opportunities, the Tamilnadu Khadi and Village Industries Board was formed in April, 1960 under the Tamilnadu Khadi and Village Industries Board Act, 1959.  The object of the Board is to develop the Khadi and Village Industries in rural areas in collaboration with likeminded agencies engaged in rural development work.  The Board has been doing its yeomen service for the development of Khadi and Village Industries in this State particularly in rural areas for the past four decades.   The Board is the authority to register  Co-operative Societies formed by likeminded  people under the Co-operative Societies Act to develop Khadi and Village Industries.    The Board through these Co-operative Societies also promotes Khadi and Village Industries and thereby provides maximum possible level of employment opportunities to the rural artisans.

The State and Central Governments provide financial support in the form of grants to the Board for supply of bee-hives to the rural folks and Tribals in Hill areas, for modernization of looms to weavers and other equipments to village artisans.  The various schemes implemented by the Board through the financial assistance of the State and Central Governments are as follows:-                                                       

Sl.

No

Name of the Scheme

Amount assisted

(Rs. in lakhs)

No. of

benefi-
ciaries

 

1.

Integrated Tribal Development Programme

 553.14

  8,397

2.

Western Ghats Development Programme for the welfare of artisans

 121.32

  5,822

3.

Hill Area Development  Programme exclusively for the development of the artisans in and around the Nilgiris district

 213.36

  6,107

4.

Special Central Assistance for Scheduled Castes

   2,707.00

37,317

          

 In addition to the creation of direct employment to rural folks by the Board and its affiliated Institutions, the Board helps the individual artisans through "Margin Money Scheme" under Rural Employment Generation Programme.  This assistance is provided as per the guidelines laid down by the Khadi and Village Industries Commission, Mumbai. There are 119 Village Industries identified by the Khadi and Village Industries Commission, Mumbai for making eligible for financial assistance under this scheme.  The financial assistance is provided to the beneficiaries through banks. A subsidy upto a maximum of 30% is being provided through Board to the beneficiaries identified by the Bank from the amount provided by the Khadi and Village Industries Commission.  So far, a sum of Rs.121.56 lakhs has been disbursed to 289 beneficiaries. These beneficiaries mostly belong to the rural areas. This scheme paves the way for them to have a permanent livelihood.

The resources of the Board can be classified mainly under State Government budget support and Board's sales proceeds.  The Government budget support is mainly in the form of rebate subsidy, staff cost grant for non – trading side and grants for various schemes under Part-II schemes.  In addition to this, the Government also provides funds for audit fees for auditing the accounts of the Board, which will be adjusted against the Government receipts.  The funds provided by the State Government to the Board are detailed as follows:-

Sl.

No.

Heads

under which funds

provided

Revised

Estimate

2001 - 2002

Budget Estimate

2002-2003

( Rs. in    Lakhs)

i

Net Cost Grant

2,000.00

2,200.00

ii

Audit Fees

260.00

260.00

iii

Rebate on sale of Khadi -

        a) KhadiBoard

b) Certified Institutions

 

 

200.00

500.00

 

 

200.00

500.00

iv

For implementation

of Special Schemes

36.30

17.11

 

                        Total

2,996.30

3,177.11

 

2   The various Khadi and Village Industries activities relating to the Tamilnadu Khadi and Village Industries Board are:-

I.  KHADI: -

 

1. COTTON KHADI AND   POLYESTER:-

The production of cotton Khadi is one of the major activities of the Board, which creates employment opportunities to rural artisans. Under this sector, the major function is to produce Khadi of all varieties, which involve the process of spinning, weaving, bleaching and dyeing, etc.  There are about 210 Rural Textiles Centres, 86 sub-centres and 46 Nepali Loom Centres in addition to Dyeing Bleaching unit at Bhavani Sagar.  These units give employment to about 20,000 artisans, of which 12,500 are rural women. The major products produced from Khadi Cotton are various types of Dhoties, Shirtings, Towels,  Bedsheets, Bedspread, Uniform cloth and Other varieties. A target of Rs. 8 crores is fixed for production of Khadi and polyester varieties through the Board for the year 2002 - 2003.

2. KHADI SILK:-

The Silk Industry is an old Industry.  The silk sarees produced by the Board are unique in nature ranging from normal price to maximum price and having potential in the market. The Board has also introduced attractive stainguard and printed sarees, which are gaining popularity among the customers.    Continuous efforts are being made to change the colour, design  including computer design  of these sarees to meet the latest taste of the consumers.  The Board is providing employment opportunities for about 1280 silk weavers throughout the year.  Besides, the Board is also having its own Silk Twisting Centre and Dyeing Centre at Kattampatti exclusively for Silk.  A target of Rs. 27 crores is fixed for the production of Khadi silk for the year 2002-2003 through the Board.

3. REBATES ON SALE OF KHADI AND SILK:-

This is one of the major financial supports given by the State Government and Khadi and Village Industries Commission, Mumbai. The Government have announced every year 30% rebate on sale of Khadi and 20% rebate on sale of Silk throughout the year including the rebate on sale offered by the Khadi and Village Industries Commission.  The Government have fixed the above rebate to the Board to the maximum of Rs.4.00 crores for the year 2001-2002.  The rebate  is also extended to the  Certified Institutions of the Khadi and Village Industries Commission.  The Government has fixed the maximum of Rs.5.00 crores  as rebate amount to the Certified Institutions for the  year 2001 - 2002.

4.  WELFARE MEASURES FOR THE SPINNERS,  WEAVERS AND ARTISANS:-

An Artisan Welfare Fund is operated by the Board.  The weavers contribute 12% of their wages to this Fund and the Board also contributes an equal share.  The corpus fund thus created is utilized for the benefit of the spinners and weavers.  Further, 10% incentive on wages has also been paid to the spinners and weavers by the Board. Assistance is being given to marriage, education and medical expenses etc., from this Fund.

A Family Welfare Scheme for the payment of an ex-gratia of Rs.20,000/- to the legal heir of deceased Spinners and Weavers of the Board is being  implemented.

A Pension Scheme of Rs.200/- per month to the spinners and weavers of the Board who have attained the age of sixty is being implemented.

II  VILLAGE INDUSTRIES: -

1.   CARPENTRY AND BLACKSMITHY WORKS:-

The Carpentry and Blacksmithy is one of the areas coming under Village Industries of the Board, which creates employment opportunities in rural as well as semi-urban areas.   The Board has 3 major Carpentry and Blacksmithy units at Industrial Estates, Guindy in Chennai, Pettai in Tirunelveli District and at Tirupur in Coimbatore District besides, running six smaller units in other Districts.  The furniture requirements of most of the Government Departments are being met by the Board. 

 A proposal to transfer the Carpentry Unit of the Board with all its assets and liabilities and concerned staff to TANSI is under consideration.

2. LEATHER INDUSTRY:-

The activities of the Board under leather industry are the production of shoes, chappals and other leather products.  There are 26 foot-wear units functioning all over Tamilnadu and the units at Ambattur, Perambur and Pallavaram are major  ones.   The requirements of the Government Departments like Prisons, Police and   Fire services and also Public Sector Undertakings like Transport Corporations are being catered by the Board.  The workers engaged in the production of leather goods in the leather industrial units mainly belong to SC/ST Communities.

3.  NON-EDIBLE OIL AND SOAP INDUSTRY:-

The Board produces various kinds of soaps by using basic raw materials, viz., neem oil, sandal oil and other ingredients required for the production of soap.  The Board's washing soap, toilet soap and detergent powder are the favourite and popular varieties among the customers of this State and Kerala .  The Board has recently introduced herbal shampoo, which is purely based on herbal raw materials.  To enlarge the activities of the soap industry, the Board has proposed to introduce "Dishwash Bar" shortly.  There are 37 soap units functioning under the Board and most of the workers are rural people. 

4. BEE-KEEPING INDUSTRY:-

Bee-Keeping Industry is one of the important activities of Board. Honey manufactured by the Board has good patronage from the public.  The Board’s Honey processing unit at Amsi in Kanyakumari District is producing "A" Grade Honey.  The raw honey is procured mostly from  Jamunamaruthur in Thiruvannamalai District and Marthandam in Kanyakumari District. This raw honey is 100% tested before packing for sales.  The Government provides financial support to this Industry by way of providing grant for supply of bee-hives to the Tribals on hill areas, Scheduled Castes /Scheduled Tribes under Western Ghats Development Programmes, Hill Area Development Programme and Integrated Tribal Development Programme.  The income earned by the farmers through bee-keeping activities is an additional income to their agriculture income.

 5. HAND MADE PAPER INDUSTRY:-

Handmade Paper Industry is an Industry, which is purely based on "wealth from waste".  The main areas of production of this Industry are file pads, paper covers, carry bags, etc.    Most of the workers engaged in these units are from rural areas.  These labourers are earning their wages under   Minimum Wages Act.  The Board has obtained orders from the Department of Railways for their requirements of covers, etc., and also from Private Institutions.  The effort to expand the market of these products will continue, so that regular employment may be given to the rural agriculturists.

6. POTTERY INDUSTRY:-

Pottery Industry is one of the traditional Industries in the State. 4 pottery units function under the control of the Board.  In these units, Glazed wares and pottery articles are being manufactured which have a good  patronage.   Khadi crafts spread all over the State sell ceramic and fancy articles

III.  MARKETING :-

The Board has 201 Khadi Krafts, 10 Grama Shilpas and 8 Leather Sales Depots to popularize and market the products produced in the units of the Board.      Special emphasis is given to popularize the Khadi and Village Industries products by conducting exhibitions and special campaigns in rural areas and by utilising the electronic media for advertisement.  In order to capture the export orders, the Board has created a web site www.khadikraft.com.  In order to motivate the sales, the sales staff of the Board was imparted special training through the Madras  Productivity Council by utilizing the funds sanctioned by the Khadi and Village Industries Commission under United Nations Development Programme.  The Board’s products are being sold through Khadi Krafts and Grama Shilpas all over Tamilnadu.  Besides, the articles such as Aavin, Tampcol, Tantea, Indcoserve, Agarbathi, Dolls, etc., manufactured by the artisans certified by the appropriate Government agencies and women groups under Women Development Corporation are also sold through Khadi Krafts on trade commission basis. The marketing activities of the Board are promoting employment opportunities to the rural artisans.

IV.   WELFARE SCHEMES OF SCHEDULED CASTES / SCHEDULED  TRIBES : -

Under the Special Component Plan, the Board has implemented various schemes like foot-wear making, cane and bamboo articles making, carpentry and blacksmithy works to provide employment to the artisans belonging to Scheduled Castes.  So far, 37,317 persons belonging to Scheduled Castes have been benefited.

The Bee-Keeping Industry has benefited the Tribal families.  Through Integrated Development Programme, the Board has so far assisted 8,397 beneficiaries belonging to Scheduled Tribes.

V.  WELFARE SCHEMES OF THE BOARD COVERED UNDER 15-POINT PROGRAMMES OF THE GOVERNMENT :-

In the 15 - point programmes of the Government, the Board's areas of activities cover under the following three programmes only : -

i)     LIVELIHOOD SECURITY :-    

 The Board provides employment opportunities to the weavers and other rural artisans through production and sale of khadi varieties and village industries products like Soap, Honey, Handmade Paper, Leather products, etc.   The  Board will take more effort in this regard.

ii)   ECOLOGICAL SECURITY :-

            The Hand Made Paper and the allied products like Carry Bags and File Pads manufactured by the Board are mainly by recycling the waste agro-materials such as cotton rags, waste paper and other agro-fibres.  The Hand Made Paper is eco-friendly.

iii)   NEW DEAL FOR THE OPPRESSED CLASSES :-

The Board through several schemes like Special Component Plan, Integrated Tribal Development Programme, Western Ghats Development Programme, Hill Area Development Programme is providing employment opportunities to people belonging to Scheduled Castes/Scheduled Tribes/Back-ward Classes and Most Back-ward Classes.

 [HHTK Policy]