Chapter IIIinterest subvention – working capital; and (iv) contribution to the Handloom <strong>Development</strong> and EquityFund and Credit Guarantee Fund Scheme for handloom weavers. On the basis of this report and theVaidyanathan Committee report, a Rs 1,200-crore package for handlooms has been formulated.For schemesto beeffective,strengtheningof thedeliverymechanismwith the helpof an NGO/voluntarysector isessential.For schemes to be effective, strengthening of the delivery mechanism with the help of an NGO/voluntary sector is essential. All the schemes will be widely publicised in local and regional languages. Aconvergence between various schemes for health, nutrition, education, etc., will be ensured. A necessarystep in this direction would be a mapping of weavers and artisans.Handicrafts: Like handlooms, this sector also touches upon the lives of the most marginalised and has thepotential to transform the economy of difficult areas such as the North-East, border states, J&K, deserthabitations etc. During the 11th Plan, it is proposed to more than double the production of handicraftsso as to create almost 11 lakh additional jobs. In order to augment the government resources, schemeswill be adopted in the public-private partnership (PPP) mode, which will involve NGOs. The 11th Planschemes for handicrafts are indicated below:66Programmaticinterventionsfocus onresearch andtechnologyupgradation,promotion ofvalue-addedtextiles,strengtheningof existinginfrastructurefacilities,creationof designbanks andComputerAided Design(CAD)centres, andeasy access tocredit and amodernisedwork-shedscheme.• Baba Saheb Ambedkar Hastshilp Yojana: Revised to a demand-driven, needs-based scheme forintegrated development of handicraft clusters. Setting up of CFCs and e-kiosks, publicity, toolkitdistribution will be included. Target: 375 new clusters in 322 districts covering four lakh artisans.• Design and Technology Upgradation: Thrust on skill upgradation, new designs, technologies,innovative products, revival of languishing crafts, setting up of a Design Bank to benefit 38,600artisans.• Marketing Support, <strong>Services</strong>, and Export Promotion: This scheme will continue and cover 1.2lakh artisans.• R&D Scheme: Conducting research studies, all-India census for handicrafts, setting up of six labs,technology development, transfer/adoption of technology.• Handicraft Artisans Comprehensive Welfare Scheme: The scheme includes Bima Yojana andRajiv Gandhi Shilpi Swasthya Bima Yojana. Target: Two lakh artisans per year for each scheme.• Human Resource <strong>Development</strong>: Special Handicraft Training Programme (SHTP) implementedduring the 10th Plan has been modified. Target: Capacity building of two lakh artisans andstakeholders.• Infrastructure Projects for development of specific need-based infrastructure, building haats,expo marts, etc.Power looms: Today, the decentralised power-looms sector provides employment to 48.6 lakh personsand contributes 62 per cent of the total cloth production in the country. Policy interventions are aimedat dealing with issues such as yarn availability and pricing and resolving the perceived ‘conflict’ betweenhandlooms and power-looms. Programmatic interventions focus on research and technology upgradation,promotion of value-added textiles, strengthening of existing infrastructure facilities, creation of designbanks and Computer Aided Design (CAD) centres, and easy access to credit and a modernised work-shedscheme. Weavers will be organised into SHGs and be encouraged to move their looms into commonwork-sheds. During the Plan period, cluster development activities will be undertaken in 50 power loomclusters. Health insurance schemes that have been announced for below poverty line (BPL) workerswould be made available to the power-loom workers and their families.Unorganised wool sector: The wool sector plays an important role in linking the rural economy andshepherds with the small, medium, and large-scale manufacturing units. India is the seventh largestproducer of raw wool accounting for 1.8 per cent of the world production. In 2003, it had about 4.266
Policy: Pathways to Sustainable Livelihoodsper cent of the world’s total sheep population. With an Employment Growth Rate of 17 per cent, theend of the Plan envisages employment of 60 lakh persons. Schemes in this sector include the IntegratedWool Improvement and <strong>Development</strong> Programme; Quality Processing of Wool and Woollen Products;a Social Security Scheme with a target of insurance for 93,500 sheep breeders in case of natural as wellas accidental death; and sheep insurance.Khadi and Village Industries (KVI): The KVI sector comprises khadi manufacturing and productionfrom village/rural industries spread all over the country. The KVI programmes have now reached over2.61 lakh villages providing employment opportunities to the rural poor in remote and hilly areas, borderand tribal areas, with women comprising 46 per cent of the workforce.The ‘Product <strong>Development</strong>, Design Intervention and Packaging (PRODIP)’ scheme (initiated to provideincentives for development of new products, designs, and better packaging of both khadi and villageindustry products) and the Rural Industries Service Centres (RISC) scheme (for establishing CFCs byproviding grants up to Rs 5 lakh per RISC) have proved successful and will be carried forward into the11th Plan. Similarly, the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) such askhadi, village, and coir industries approved in October 2005 will be continued in the 11th Plan. Newproducts and new designs will be developed with the help of the National Institute of Design (NID)and National Institute of Fashion Technology (NIFT). Product quality will be priority and packagingwill be improved to position khadi as a fashion statement for youth.Coir Industry: This industry provides livelihoods and/or additional income to more than 31.25 lakhpeople, mostly from the disadvantaged sections of the population. Women constitute 80 per cent ofits workforce. During the 11th Plan period, most of the 10th Plan schemes will be continued to reducedrudgery and increase production and wage levels. A major cluster development project with an approvedoutlay of Rs 56.8 crore has been taken up. It is proposed to increase the level of growth of the industryto 15 per cent and achieve a turnover of Rs 2,100 crore by the end of the Plan period. Approximately1,76,250 new jobs will be created of which 1.41 lakh jobs will be for women. There is a need howeverto focus on R&D for diversification and popularising new coir products. Modernisation, and technologyupgradation schemes are planned during the period. Better conversion rate of husk-to-coir productsas a result of this scheme will require 50,000 additional coir workers. Five mega clusters, one each inKerala, Tamil Nadu, Andhra Pradesh, Karnataka, and Orissa, with a thrust on technology upgradationwill be promoted.Food processing industry: India currently produces about 50 million tonne of fruits, and 90 milliontonne of vegetables. Yet, only about 2 per cent of these fruits and vegetables are processed. Lack ofprocessing and storage capacities for fruits and vegetables results in about 35 per cent waste in annualproduction, valued at approximately Rs 54,000 crore. The 11th Plan proposes to improve infrastructureby establishing food parks, abattoirs for modernisation, cold chain infrastructure and value-added centres.It aims to upgrade technology, provide quality assurance, code standards, and R&D and promotionalactivities. Potential entrepreneurs, especially women, SCs and STs will be identified, and tailor-made EDPs,skill development programmes, study tours, etc., will be organised. Gender sensitisation programmesfor stakeholders including extension functionaries and other implementing agencies will be carriedout. Training programmes promoting women entrepreneurs will be redesigned to include technology,management, and microcredit. Most importantly, provision of utilities, basic amenities, and crèches forwomen staff workers will be made mandatory in the infrastructure projects.There isa needhoweverto focus onR&D fordiversificationandpopularisingnew coirproducts.Modernisation,andtechnologyupgradationschemes areplannedduring theperiod.The total projected Gross Budgetary Support (GBS) for the 11th Plan is Rs 3,564 crore (2006-’07 price)and Rs 4,031 crore (current price). A matching private sector investment and a leveraging ratio of 2.5would result in an investment of about Rs 20,000 crore in the processing units. This would lead tocreation of 28 lakh additional jobs in the organised sector during the Plan period.67
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Mona DikshitMona Dikshit has been a