The Hindu : Opinion / Editorials : Boost for rural industries

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Thursday, Nov 17, 2005

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Boost for rural industries

The Khadi and Village Industries Commission (Amendment) Bill, 2005, now before Parliament, is aimed at fulfilling a promise in the National Common Minimum Programme of the ruling coalition to revamp the functioning of the Commission and modernise khadi and village industries (KVI). The Bill, except for a few clauses, is devoted to recasting the administrative structure of the Commission. One of the most important requirements of any production support system, that is, professionalism, is sought to be ensured by stipulating that there shall be three non-official members with expert knowledge and experience — in science and technology, marketing, and economics or planning or technical training. This is clearly an improvement over the existing law that makes no mention of "marketing" and clubs science and technology with economics and training. In operational terms, the most significant change proposed by the Bill relates to the definition of "village industry" (eligible for subsidy and margin money assistance) — it is sought to be enlarged by raising the investment limit per worker or artisan to Rs.1 lakh from Rs. 50,000. In doing so, the government has signalled a new direction for KVIC and clearly expects it to look at promoting rural industrialisation in the contemporary economic environment, not just protecting traditional products, as its prime task.

The new limit would make a substantial difference to the Rural Employment Generation Programme (REGP), the flagship scheme of the KVIC which, rightly, extends beyond khadi and polyvastra and embraces any manufacturing or service activity in a rural area including possibly consumer electronics and engineering items. Traditional rural products should command a distinct advantage in these times in view of the increasing awareness about ecological imperatives, particularly among consumers in developed countries. Hand-made paper, containers made of traditional metals and pottery, decorative products from natural fibres such as cotton, coir and jute, leather products, and plates made of leaves are some of the products that can win a large market within the country and abroad, provided professional expertise goes into organisation of research and development, production and marketing. The way jute — once associated in the common man's perception with gunny bags for packing — has become the raw material for a wide range of diversified products winning consumer patronage shows what KVIC can do in the fulfilment of its task. The revolution in jute products was a gift from dedicated research institutions that invested a great deal of time and money in product development with the support of organised industry and government. The KVIC, and equally importantly State-level KVI Boards, should attempt a similar revolution in respect of rural raw material resources by networking with institutions that could help in developing the technology, marketing, design, fashion, and skills.

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