HANDLOOMS, HANDICRAFTS, TEXTILES AND KHADI DEPARTMENT

KHADI, VILLAGE INDUSTRIES AND HANDICRAFTS

POLICY NOTE 2011 - 2012

DEMAND NO.18

P.CHENDUR PANDIAN Minister for Khadi and Village Industries

Government of TamilNadu 2011 POLICY NOTE

FOR 2011 - 2012

INDEX

S. PAGE DEPARTMENTS No No

1 DEPARTMENT OF SERICULTURE 1 - 23

TAMILNADU HANDICRAFTS 2 DEVELOPMENT CORPORATION 24 – 38 LTD "POOMPUHAR"

TAMILNADU KHADI AND VILLAGE 3 39 – 54 INDUSTRIES BOARD

TAMILNADU PALM PRODUCT 4 55 - 58 DEVELOPMENT BOARD

2 DEPARTMENT OF SERICULTURE

The Policy of the Government is to make Tamil Nadu the best State in the country in every sphere / field by providing opportunities for a healthy and productive life for all. In tune with this policy, the Department of Sericulture undertakes various activities in the State.

1.1 Tamil Nadu has a long tradition of silk production in our country. The handloom silk sarees of Kanchipuram, Arni,

Kumbakonam and Rasipuram are world famous. The agro based Sericulture industry provides income and employment opportunities to the rural people throughout the year.

Sericulture is a monthly payslip to farmers.

1.2 In 1956, after State re-organization on linguistic basis, Sericulture was practised in limited pockets of

Talavadi and Hosur areas of the State. With development of improved Silkworm cross breeds and resultant higher yield in cocoon, the activity was introduced into the plains of the

State in 1977-78. Encouraged by the impact of the “Intensive

3 Sericulture Development Programme” and its potential to generate employment and periodic returns to the farming community, the Tamil Nadu Government formed a separate

Department of Sericulture with headquarters at Salem with effect from April 1979.

1.3 India is the second largest producer of raw silk after

China and the highest consumer of raw silk fabrics in the world. China accounts for about 82 % of the world’s raw silk production and India produces about 16 % of world’s raw silk production. Currently, the demand of raw silk in India is about 28,000 Metric Tons, of which 20,000 Metric Tons is produced in the country and the rest of 8,000 Metric Tons being imported mainly from China. The demand for raw silk in Tamil Nadu is about 3,000 Metric Tons, of which 1,200

Metric Tons is produced in the State and the rest is mostly obtained from neighbouring Karnataka State and from

China. It is therefore essential to encourage Sericulture industry.

4 1.4 In India, there are 4 types of silk namely Mulberry,

Tasar, Eri and Muga which have different host plants. In

Tamil Nadu, Mulberry sericulture is practised in Krishnagiri,

Dharmapuri, Salem, Erode, Coimbatore, Tiruppur, Vellore,

Namakkal, Dindigul, Theni, Tiruvannamalai, Villupuram,

Cuddalore, Tiruchirapalli, Thanjavur, Pudukottai, The

Nilgiris, Virudhunagar, Tirunelveli and Kanyakumari districts.

1.5 The department of sericulture promotes mulberry cultivation, silkworm rearing, marketing of cocoons, silk reeling and twisting. The following activities are undertaken to promote sericulture :-

(i) Encouraging the farmers to raise high yielding mulberry varieties.

(ii) Imparting training to mulberry cultivation, silkworm egg production, silkworm rearing, silk reeling and twisting.

(iii) Ensuring the supply of quality, disease free silkworm seeds.

5 (iv) Transferring of technology for increased cocoon productivity

(v) Providing assistance for mulberry cultivation, establishment of chawkie rearing centres, installation of drip irrigation systems, purchase of silkworm rearing equipments and for the construction of separate rearing houses.

(vi) Providing assistance to establish silk reeling and twisting units in the private / co-operative sector.

(vii) Providing marketing facilities for cocoons and silk yarn.

(viii) Implementation of health insurance scheme for women sericulturists and workers.

(ix) Implementation of crop insurance scheme for sericulture farmers.

(x) Providing assistance for the up-gradation of looms to reduce drudgery of the weavers.

6 MULBERRY GARDEN

SILK MOTH - EGG LAYING

7 CHAWKIE (YOUNG) SILK WORM REARING

5 TH INSTAR SILKWORM

8 COCOONS

1.6 The Directorate of Sericulture formulates and monitors schemes towards development of Sericulture in the State of Tamil Nadu. Schemes are implemented through 5 Regional Officers at Erode, Dharmapuri, Vellore, Trichy and Madurai assisted by 19 Assistant Directors. One Deputy Director at Hosur is in-charge of silkworm seed co-ordination activity for the State with 5 Assistant Directors. 105 Technical Service Centres are functioning in the State. Technical Service Centre is headed by an Inspector of Sericulture or Assistant Inspector of Sericulture. Each Technical Service Centre is further divided into 3 to 5 sub-ranges staffed by Junior Inspectors of Sericulture.

9 2. FORWARD AND BACKWARD LINKAGES:

In order to promote development of sericulture in the State, the following infrastructures are available.

10 (a) Basic silkworm seed production :

The production of a large quantum of silkworm seed for supply to the farmers is effected from out of the basic quality seed material by three different stages of multiplication known as the P3, P2 and P1 stages, denoting the three successive generation of production. They are separately reared in isolated farms, identified for this purpose.

The department has established 19 seed farms for the preparation and maintenance of different varieties of local and bivoltine silkworm races.

(b) Grainages :

The silkworm eggs required for the State are produced in 11 Government grainages, 3 Central

Government owned National Silkworm Seed Organisation

(NSSO) grainages and 6 private grainages. The

Government grainages at Coimbatore, Talavadi, Hosur and

Krishnagiri are producing Bivoltine silkworm eggs.

11 (c) Chawkie rearing centres :

There are 22 chawkie (young worms) rearing centres under private sector and 2 chawkie rearing centres under

Government sector functioning in the State. In these centres, hygiene, temperature and humidity are maintained at the optimum level and the worms are reared uniformly upto seven days and distributed to the farmers.

(d) Government Cocoon markets : There are 3 seed cocoon markets at Hosur,

Denkanikottai and Coimbatore, where local and bivoltine seed cocoons are traded. Seed cocoons are used for production of commercial silkworm layings. Apart from these, 19 commercial cocoon markets are functioning in the

State for the transaction of reeling cocoons brought by farmers. Floor price for reeling cocoon is fixed by the

Committee consisting of market officer and other stakeholders based on the quality of cocoons. Private reelers and Government units are allowed to procure the cocoons in open auction.

12 COCOON MARKET

(e) Government Silk reeling / twisting Units :

To support the post cocoon activities, department is running 5 silk reeling units and 3 silk twisting units.

13 REELING CENTRE : MULTI – END

(f) Government Silk farms:

There are 10 hybrid silk farms, 6 demonstration-cum- training centres, 6 model mulberry plantations and 10 farmers training centres functioning in the State. Mulberry saplings production, chawkie worms supply and farmers training activities are carried out in these farms.

14 (g) Tamil Nadu Sericulture Training Institute, Hosur :

In order to provide refresher trainings to the field level functioneries in the department and to train farmers and reelers, a sericulture training institute is functioning at

Hosur.

(h) Government Anna Silk Exchange, Kanchipuram :

The silk exchange is functioning at Kanchipuram from 1991 to provide competitive marketing opportunities for raw silk. All the silk lots brought to this exchange for marketing by the silk reelers are tested for quality and based on the quality the floor price is fixed. The Tamil Nadu Silk

Producers Co-operative Federation (TANSILK), Weavers

Co-operative Societies, Master weavers and twisters participate in the open auction and purchase the raw silk.

The silk exchange ensures spot payment to the reelers for the raw silk transacted at this centre. Anna Silk Exchange provides a platform for direct link between the raw silk producers and the consumers and reduces the role of middlemen to a great extent.

15 SILK AUCTION

(i) TANSILK, Kanchipuram: SILK TWISTING

16 Tamil Nadu Silk Producers Co-operative Federation

Ltd.” (TANSILK) is an apex body of silk co-operative societies, registered in the year, 1978. This federation procures major quantity of raw silk from the Anna Silk

Exchange, Kanchipuram. With headquarters at

Kanchipuram, TANSILK has branches at Kanchipuram, Arni,

Kumbakonam, Coimbatore, Erode and Salem.

TANSILK supplies ready silk at fair price to Silk

Handloom Weavers Co-operative Societies, Tamil Nadu

Khadi and Village Industries Board and the certified institutions like Sarvodaya Sangh where, this ready silk is woven into silk sarees, dhothies and other materials and sold through Tamil Nadu Handlooms Weavers Co-operative

Society Ltd. Co-optex), Co-operative Handloom Societies showrooms and private outlets.

17 TANSILK : WOMEN IN SERICULTURE

3. Stratagies adopted to strengthen Pre-cocoon sector : (a) Conducting awareness programme at Technical Service

Centres to motivate new farmers to take-up sericulture.

(b) Ensure supply of quality high yielding mulberry varieties to farmers. (c) Imparting training on mulberry cultivation and silkworm rearing. (d) Assured supply of disease free silkworm eggs to farmers. (e) Providing technical and subsidy assistance to the sericulture farmers. (f) Providing market facilities to the farmers for transacting cocoons produced by them.

18 (g) Providing crop and health insurance coverage for social security of sericulture farmers.

4. Strategies adopted to strengthen post cocoon sector :

In order to strengthen the post-cocoon sector in

Tamil Nadu, following multi-pronged strategy has been adopted.

(a) Revival of closed reeling units in Government, Co-operative and private sectors

(b) Strengthening the infrastructure of existing units.

(c) Encouraging establishment of new silk reeling units.

(d) Providing assistance for formation of new twisting units.

(e) Establishment of New Automatic Reeling units.

(f) Assistance for loom up-gradation.

(g) Support for establishment of common facility dyeing centres.

(h) Computer Aided Textile Designing (CATD)

(i) Providing incentive for Bivoltine silk produced by all automatic and multi-end reelers.

(j) Training to reeling workers.

19 5. MULBERRY CULTIVATION IN TAMIL NADU

7,550 acres have been brought under mulberry against the target of 7,500 acres for the year 2010-2011.

5 (a) Bivoltine Silk production :

The reasons for low quality of the raw silk produced from the cross breed cocoon (yellow) are lower shell weight, high renditta, lower cocoon shell ratio and poor fibre quality.

In order to overcome these limitations, the bivoltine hybrids have been evolved. The filament length of the cross breed cocoon (yellow) is 700 to 800 metres, whereas, it is 1,000 to

1,200 metres in the case of bivoltine cocoons. Bivoltine silk can be used for powerloom unlike the yellow silk since tenacity and elongation of bivoltine silk are better than the yellow silk. The silk imported from China is bivoltine silk.

Central Silk Board is giving thrust to encourage production of bivoltine silk, so as to reduce the dependency on Chinese silk.

20 5 (b) Cocoon production per 100 disease free layings. Tamil Nadu stands 1st in cocoon productivity. State average is 66 kgs. National average is 55 kgs.

5 (c) Chawkie worms distribution Tamil Nadu stands 1st in chawkie (Young) worms distribution. More than 25 % of layings are distributed as chawkie worms which is the highest at National level.

21 5 (d) Cluster Promotion Programme Tamil Nadu stands 1st in implementation of the Cluster Promotion Programme for promotion of bivoltine silk production at National level.

5 (e) Bivoltine silk production. Tamil Nadu produces 414 Metric tons of Bivoltine silk per year and stands 1st in the country.

22 5.1 Financial Allocation

During the year 2010-2011, Sericulture development schemes were implemented at a total cost of Rs.4,499.424 lakh. Out of this, Rs.2,234.940 lakh was the share of Central Silk Board, Rs.1,154.229 lakh was the State’s share and Rs.1,110.255 lakh was the beneficiaries’ share.

6. NEW SCHEMES FOR THE YEAR 2011 - 2012.

During 2011-2012, the following schemes are proposed to be implemented for the benefit of sericulturists. The scheme wise sharing details are given below:

Unit State CSB Beneficiary Sl. Name of the Unit Cost Share Share Share No Scheme ( In Rs.) ( In Rs.) ( In Rs.) ( In Rs.) Mulberry 1 Plantation Acre 5500 1375 2750 1375 Development Programme Assistance for Irrigation and Other 2 conservation Acre 20000 10000 10000 -- & usage techniques (Drip irrigation) 3 Assistance for construction of separate rearing houses Level – I Per farmer 150000 37500 37500 75000

23 Unit State CSB Beneficiary Sl. Name of the Unit Cost Share Share Share No Scheme ( In Rs.) ( In Rs.) ( In Rs.) ( In Rs.)

Level – II Per farmer 100000 25000 25000 50000 Assistance for procurement of Rearing per farmer 40000 10000 20000 10000 4 appliances / Farm equipments Health Insurance 5 scheme to per worker 767.28 139.13 628.15 -- Women workers Training in per 6 silkworm 5000 -- 5000 -- beneficiary rearing Establishment 7 of Seri-Poly Per Clinic 150000 75000 75000 -- Clinics in clusters Support for Nos 8 purchase of 96000 24000 48000 24000 Hot air driers Loom 9 per loom 10000 5000 5000 -- upgradation 1 Assistance for per unit 600000 -- 450000 150000 0 Twisting Units Insurance coverage for 1 per rearing 363 91 181 91 1 100 layings appliances and shed Assistance for 1 yarn dyeing per unit 300000 -- 225000 75000 2 processing

24 BUDGET PROVISION FOR THE YEAR 2011-2012

Following allocations of funds are made to the

Department of Sericulture in Budget Estimate 2011-2012 for

Plan and Non-Plan schemes:-

Outlay for Sl. Name of the Scheme 2011-2012 No (Rs. in lakh) I. PLAN SCHEMES : a) 1) Catalytic Development Programme under Sericulture Rs. 100.00 Development and Price lakh Stabilization Fund (SD&PSF). 288.91

2) Sericulture Development Rs. and Price Stabilization Fund 188.91 (Inter-account transfer) lakh b) New Schemes 700.00

c) Western Ghats Development Programme 39.00

d) Hill Area Development Programme 16.70 II. NON – PLAN SCHEMES: (Maintenance of Government units, 5,444.61 Salary, Wages, etc.,) Total 6,489.22

25 THE TAMIL NADU HANDICRAFTS DEVELOPMENT CORPORATION LTD "Poompuhar"

1 PROFILE OF THE COMPANY "The Tamil Nadu Handicrafts Development Corporation Limited" was incorporated as a Public Limited Company under the Companies Act, 1956 on 26.07.1973 and the Corporation commenced its business from 01.08.1973. The sales Emporia and the Training-cum- Production Centres which functioned under the control of the Department of Industries & Commerce and the Tamil Nadu State Co-operative Marketing Society Limited were transferred to this Corporation.

The Corporation has at present a network of 15 showrooms spread all over Tamil Nadu and also in other States at Bangaluru, Kolkata and New Delhi. The Corporation has been implementing its main objective of providing marketing assistance to the artisans by selling the artefacts through its wide network of showrooms and also by conducting exhibitions in various parts of the country and by participating in exhibitions abroad. The Corporation has

26 production centres for the crafts of Brass lamps and Brass artwares, Bronze icons, Thanjavur Art plates, Woodcarving and Stone sculptures.

2. Main Objectives

The main objectives of the Corporation are as follows:

(i) to undertake the marketing of handicrafts produced by the artisans of Tamil Nadu; (ii) to impart training to artisans to upgrade their skills; (iii) to improve the productivity and the quality of the products; at the same time to reduce drudgery and remove occupational hazards; (iv) to encourage new innovative designs; and (v) to provide socio-economic security for craftsmen

To fulfill the above objectives, the Corporation is engaged in various activities such as production and marketing of handicrafts, execution of special projects in temples, training of artisans, etc.

3. COMMERCIAL ACTIVITIES:- 3.1 SALES

From a small beginning of an annual turnover of Rs.50 lakh in 1973–74, the Corporation has grown gradually over the past thirty eight years and during 2010-11, it

27 achieved a turnover of Rs.25.53 crore. For the current year, a Sales Target of Rs. 50.00 crore has been planned.

The showrooms of the Corporation wherever they are situated have earned a name for themselves. With the development of the brand name in the last 38 years, the Corporation has been able to help the artisans to increase the sale of their products to a substantial extent. The Corporation is providing additional marketing opportunities to the artisans by conducting a large number of exhibitions in various parts of the country in connection with various festivals and other important local occasions. During 2010- 2011, the Corporation has organized 136 exhibitions and achieved a sale of Rs.7.22 crore through these exhibitions. During the current year, the Corporation has planned to organize 200 exhibitions to achieve a sales turn over of Rs.14.00 crore.

3.2 GANDHI SHILP BAZAAR

The Corporation organised a national level exhibition ‘Gandhi Shilp Bazaar’ at Chennai, from 11.03.2011 to 20.03.2011. In this exhibition, 150 artisans from all over India representing 25 States including Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Chhattisgarh, Uttaranchal, Jharkhand, Bihar, Punjab, Rajasthan, Jammu & Kashmir, Gujarat and Puduchery participated. In this grand

28 exhibition, handicrafts like metal crafts, paintings, handcrafted textiles, jewellery, terracotta, bamboo crafts, rose wood and sandalwood carvings worth about Rs.1.00 crore were sold. This exhibition was a very successful event as it attracted a large number of visitors, including exporters.

3.3 FOREIGN EXHIBITIONS

The Corporation has organized a thematic exhibition cum sale of Handicrafts at Singapore from 18.3.11 to 27.3.11. This Exhibition at Singapore received good response from the Indian diaspora at Singapore. For the current year also, it has been decided to organize a Thematic Exhibition at Singapore. Further, the Corporation has participated in an International Fair organized at New York (USA) during August, 2011. The Corporation also proposes to participate in another International Fair to be held at Milan (Italy) during December, 2011.

3.4 EXPORT

The value of handicrafts articles sold to the foreign tourists who are visiting the showrooms of this Corporation has increased to a larger extent during the last few years. Bronze Icons, Brass ornamental lamps, rosewood utility items and Thanjavur paintings are some of the important handicraft items that form part of such exports. With a view to increase its export sales, the Corporation is also planning to undertake e-Commerce through its website.

29 Thanjavur Painting

3.5 RENOVATION OF SHOWROOMS

The Corporation renovates its showrooms periodically to have an attractive look. During 2011-2012, the Showroom at Madurai is to be renovated at a cost of Rs.15.00 lakh.

4. PRODUCTION

The Corporation has 7 production centers at Nachiarkoil, Madurai, Thanjavur, Vagaikulam, Swamimalai, Kallakurichi and Mamallapuram for production of various handicrafts. The Tamil Nadu Handicrafts Development

30 Corporation Limited is the only Handicrafts Corporation in the country having its own Production Units.

Nachiarkoil Swamimalai Brass Ornamental Lamp Bronze Icon

The value of handicraft articles produced during the year 2010-11 was Rs.3.40 crore. For the current year, a production target of Rs. 9.30 crore has been fixed.

The artisans working in the Production Units of the Corporation were hitherto getting a very paltry wages of Rs.3,000/- to Rs.5,000/- per month, which is not at all sufficient to make both ends meet even for a normal living. Artisans associated with THDC, a Government undertaking, being paid such low wages, would also encourage private

31 workshops to exploit the artisans by paying similar low wages.

There was a possibility of the artisans abandoning their ancient craft skills and going for other vocations to earn a decent living. Such a situation. if allowed to continue, would lead to extinction of the crafts for want of artisans. Therefore, the Corporation has doubled the wages of the artisans working in the Production Units of the Corporation to enable them to get wages ranging from Rs.10,000/- to Rs.20,000/- per month.

This step will motivate the artisans to continue in the craft and also encourage the younger generation in their family to take up the practising of the craft skill paving the way for availability of more artisans and flourishing of the heritage crafts in the State.

The Corporation has also initiated measures to strengthen the Production Units in all fronts including better infrastructure, new designs, etc to set the standard for the industry which will ensure the overall development of the handicraft sector in the State.

5. SPECIAL PROJECTS

The Corporation has carved a niche for itself in the field of executing special temple projects such as fabrication and assembling of Golden/ Silver chariots, Temple cars,

32 Vahanams, Kodi Marams, Bells etc. The Tamil Nadu Handicrafts Development Corporation Limited is the only Corporation among all Handicrafts Development Corporations in the country to have such a specialization.

Apart from this, the Corporation also produces and supplies Brass Iron Boxes required by the Department of Most Backward Classes, 4 grams Gold Medals required by the various Government Departments to be given to the Drivers working in the Departments for their completion of accident free service of 20 years, Gold Medals for Government Film Awards/Chinnathirai Awards/ Kalaimamani Awards.

During 2010-2011, the Corporation has executed orders to the value of Rs.2.62 crore. During the current year the Corporation has secured an order for a value of Rs.35.00 lakh from the Arulmigu Dhandayuthapani Thirukoil, Palani for supply of 20,000 brass lamps embossed with the deity’s figure for distribution to the devotees who are pulling Golden Chariot. The Corporation has also taken steps to produce and supply similar Brass lamps to 108 important temples in the State duly embossed with the figures of the deity concerned for distribution to devotees pulling Golden Chariot and for other needy devotees / tourists.

33 6. ON GOING SCHEMES:- 6.1 SETTING UP OF URBAN HAAT AT MAMALLAPURAM

Orders have been issued to establish an Urban Haat at Mamallapuram in Tamil Nadu with a financial outlay of Rs.2.00 crore. The expenditure will be shared by State and Central Governments at Rs.60.00 lakh and Rs.140.00 lakh respectively.

In addition to financial assistance, the Government of Tamil Nadu have allotted 4.45 acres of land in Beach Resort Complex of TTDC Ltd at Mamallapuram on long lease basis, for 30 years.

At present the Government of India have increased the financial outlay from Rs.2.00 crore to Rs.3.00 crore for this project. By utilizing this opportunity, the Corporation has sent revised proposals to Government of India with a view to provide accommodation and other essential infrastructural facilities to those artisans who participate in the exhibitions to be organized in this Haat. The State Government’s share will be Rs.90.00 lakh under the revised financial outlay. Hence the Corporation has submitted proposals to the State Government for sanction of Rs.30.00 lakh for this Haat in addition to Rs.60.00 lakh already sanctioned.

34 6.2 SETTING UP OF URBAN HAAT AT KANYAKUMARI Orders have been issued to establish an Urban Haat at Kanyakukmari in Tamil Nadu with a financial outlay of Rs.2.00 crore. The expenditure will be shared by State and Central Governments at Rs.60.00 lakh and Rs.140.00 lakh respectively.

The Government of Tamil Nadu have allotted 1.89 acres of Government land at Agatheeswaram Taluk near light house at Kanyakumari on long lease basis for 30 years.

This project work has been now speeded up by getting the required design, structural drawings, etc from the architect and by having detailed discussions regarding use of ethnic material in the construction work. The Public Works Department will be shortly calling for tenders for this work and the construction will commence shortly. 6.3 CRAFT MUSEUM AT CHENNAI

Government orders have been issued to set up a Craft Museum at a cost of Rs.50.00 lakh in Chennai. The financial assistance for this scheme will be received as detailed below:

Central Government - Rs.26.00 lakh

Government of Tamil Nadu- Rs.18.45 lakh

THDC Ltd- Rs. 5.55 lakh

Total- Rs.50.00 lakh

35 It has been decided to establish the said Craft Museum in the premises of Poompuhar Showroom, Anna Salai, Chennai. The construction work for this project had not commenced earlier. Now, the construction work has been commenced and nearly 50% of the works are completed. The remaining work has been speeded up and in a few months time, the entire work is expected to be completed.

7. PART II SCHEMES:-

7.1 PART II SCHEMES FOR THE YEAR 2011-2012

S.No. Name of the scheme Amount ( Rs. in lakh) (1) Computerization of 9.68 major showrooms and scheme for interlinking with Head Office (2) Matching grant for 15.00 renovation and refurbishing of showrooms at Chennai and Coimbatore (3) Scheme for 5.00 operationalisation of the modern Design Centre at Chennai in phases beginning 2011 Total 29.68

36 8. AWARDS DISTRIBUTED TO BEST CRAFTSMEN:-

8.1 SHILP GURU AWARD AND NATIONAL AWARD In Tamil Nadu, so far, 23 Mastercraftsmen have been conferred with National Award. These Mastercraftsmen practice the crafts of Bronze icon making, Stone carving, Wood carving, Kalamkari painting, Glass painting, Temple Jewellery and Korai Fine Mat weaving. With this Award, a cash prize of Rs.1.00 lakh, a copper plaque and an angawasthram are being given. This Award is presented by Her Excellency the President of India. The Government of India have instituted Shilp Guru Award which is higher than the National Award, for highly talented mastercraftsmen. Three craftsmen from Tamil Nadu have received this Award. The fact that 23 craftsmen have been conferred with National Award and 3 craftsmen have been conferred with Shilp Guru Award goes to show the rich expertise of the craftsmen of Tamil Nadu.

8.2 POOMPUHAR STATE AWARD

So far, the craftsmen conferred with Poompuhar State Award were being given Rs.50,000/- in cash, 4 gram gold medal and a certificate.

From this year onwards, it is proposed to give a Tamira Pathra for the Poompuhar State Award winning

37 craftsperson on par with the Tamira Pathra being given to National Award winning craftspersons.

8.3 PENSION FOR AWARD WINNING ARTISANS

Those artisans who have received Shilp Guru Award,

National Award and Poompuhar State Award are eligible to receive a pension of Rs.1000/- p.m after they complete the age of 60 years.

8.4 POOMPUHAR DISTRICT CRAFT AWARD With a view to motivate the artisans of Tamil Nadu, it has been decided to institute “Poompuhar District Craft Award” from the year 2011-12 onwards for 75 skilled artisans.

For this award, 5 artisans each from 15 crafts viz Bronzes, Thanjavur paintings, Thanjavur Art plates, Wood carvings, Stone carvings, Terracotta, Applique & Kalamkari, Paper machie, Mat weaving, Bamboo & Palmleaf, etc, Pith works, Fibre products, Temple jewellery, Laces & embroidery and miscellaneous crafts will be selected. Out of this, one award in each craft is exclusively reserved to be given to a woman craftsperson.

This Poompuhar District Craft Award carries a cash award of Rs.5,000/- and a certificate.

38 The artisans working in the Corporation’s production units have not been recognized for the work done by them. Though they have served for several years, their life style has not improved. With a view to change the situation, it has been facilitated for Poompuhar artisans to participate in the Poompuhar State / District Awards. This will enable them to get the National Award as well.

9. FINANCIAL PERFORMANCE

The Corporation has earned a net profit of Rs.37.37 lakh during last year. During this financial year, the Corporation has planned to double this profit.

10. WELFARE SCHEMES FOR HANDICRAFTS ARTISANS:-

10.1 “THE ARTISAN BECOMES AN ENTREPRENEUR” SCHEME

The Corporation has proposed to implement a new scheme, namely, “The Artisan Becomes an Entrepreneur” to cover 100 artisans to enable them to establish their own production centres. The Corporation has initiated steps to provide required loan facilities through Government financial institutions like Tamil Nadu Industrial Investment Corporation to the said artisans, which will ultimately improve the life style of the artisans and provide additional employment

39 opportunities through which the handicraft sector in Tamil Nadu will develop to a great extent.

10.2 G.I. REGISTRATION FOR HANDICRAFTS

In the context of the globalization of the market economy, Geographical Indication (GI) registration plays a very important role in asserting the authenticity/genuineness of the products.

G.I. registration has been already obtained for the crafts of Swamimalai Bronze Icons, Thanjavur Thalayatti Bommai, Thanjavur Art Plates, Thanjavur Paintings and Nagercoil Temple Jewellery

At present applications for G.I. registration for the crafts of Nachiarkoil lamps, Thoda embroidery and Pathamadai Mats have been already filed and they will be getting G.I. registration soon.

Further, during the current year, steps will be initiated to obtain G.I. registration for the crafts of Mamallapuram Stone Carvings and Thammampatti Wood carvings which were not covered under G.I. registration so far.

40 TAMIL NADU KHADI AND VILLAGE INDUSTRIES BOARD

The Tamil Nadu Khadi and Village Industries Board was formed under the Tamil Nadu Khadi and Village Industries Board Act, 1959 for achieving twin goals of self reliance and self employment. The main objectives of Tamil Nadu Khadi and Village Industries Board is to encourage, promote and assist Khadi and Village Industries in rural areas with major focus on artisans and weaker sections to improve their livelihood and to give impetus to rural economy. ADMINISTRATION

The Khadi and Village Industries Board is a statutory Board headed by Honourable Minister for Khadi, as its President and officials nominated by the Government as Members. Functionally, the Board is divided into two major areas as Khadi and Village Industries. 1. KHADI

Khadi is a fabric of freedom struggle, a symbol of self reliance and empowerment. Khadi has played an important role in giving employment in the areas of spinning, weaving, dyeing and printing of Khadi products.

41 1.1 COTTON AND POLYVASTRA

There are 141 Rural Textile Centres, 40 Sub Centres and 9 Nepali Loom centers functioning under the control of Tamil Nadu Khadi and Village Industries Board, providing employment for about 20,000 artisans, mostly comprising rural women. Yarn is produced in the Rural Textile Centres and Weaving is done in 40 Khadi Sub Centres and 9 Nepali loom centers. The major manufactured items consist of Dhoties, shirts, towels, bed sheets, bed spreads and uniform cloth. These items are sold to Government Departments and to the consumers through Khadi Krafts retail points. During the year 2010-2011, Cotton and Polyvastra goods worth Rs.4.07 crore were produced and goods worth Rs.10.80 crore including consignment goods were sold. A target of Rs.9.00 crore has been fixed for production of Khadi and Polyvastra varieties for the year 2011-2012. 1.2 KHADI SILK 26 Silk Sub Centres are functioning under the control of Tamil Nadu Khadi and Village Industries Board. Traditional Silk sarees are produced in these Silk Sub Centres. There is a good demand for Khadi Silk Sarees. The Board is producing self designed and computerized designed sarees to cater to the taste of the customers. The

42 Board has also introduced attractive printed and embroidery sarees, which are gaining popularity among the younger generation. The Board is providing employment opportunities for about 1,500 silk weavers in a year. During the year 2010-2011, silk varieties worth Rs.3.52 crore were produced and sarees worth Rs. 6.52 crore were sold. A target of Rs.4.00 crore has been fixed for production of silk varieties for the year 2011-2012.

2. WELFARE MEASURES FOR THE SPINNERS AND WEAVERS

2.1 WELFARE FUND FOR SPINNERS AND WEAVERS

The Board has set up a Welfare Fund for spinners and weavers. The artisans contribute 12% of their wages to this fund and the Board is also contributing an equal share. Based on their request and availability of funds in their account, financial assistance is being given to the spinners and weavers during festival seasons. Further, in addition to the wages, 10% of the amount is also paid to the spinners and weavers by the Board as incentive.

43 2.2 WELFARE BOARD FOR SPINNERS AND WEAVERS

As per the Government Order, a Welfare Board for spinners and weavers has been formed for providing welfare assistance to spinners and weavers working under Khadi Board and Sarvodaya Sangh. The Government have sanctioned Rs.50.00 lakh. So far, 9041 spinners and weavers have been registered as members and an amount of Rs.1.53 lakh was disbursed to 121 beneficiaries under the following heads:

Educational assistance Rs.1.52 lakh Cost of Spectacles Rs.0.01 lakh

The following welfare assistance are given under this scheme.

S. Amount in Nature of Assistance No. Rupees. 1. Accident Insurance Scheme a. Accidental Death 1,00,000/-

b. Accidental Disability 10,000 to Based on extent of 1,00,000/- Disability 2. Natural Death Assistance 15,000/- 3. Funeral expenses Assistance 2,000/- 4. Educational Assistance:- a. Girl Children 1,000/- studying 10th

44 S. Amount in Nature of Assistance No. Rupees. b. 10th passed 1,000/- c. Girl Children 1,000/- studying 11th d. Girl Children 1,500/- studying 12th e. 12th passed 1,500/- f. Regular Degree 1,500/- course With Hostel Facility 1,750/- g. Regular Post 2,000/- Graduate Course With Hostel Facility 3,000/- h. Professional Degree 2,000/- Course With Hostel Facility 4,000/- i. Professional PG Course 4,000/- With Hostel Facility 6,000/-

j.I.T.I or Polytechnic 1,000/- Course With Hostel Facility 1,200/- 5. Marriage Assistance 2,000/- 6. Maternity Assistance 6,000/- for Rs.1000 p.m.

Abortion 3,000/- 7. Reimbursement of Cost of upto 500/- Spectacles

8. Old age Pension per month 400/-

45 3. VILLAGE INDUSTRIES

Village Industries plays a key role in generating rural employment and improving the earnings of the rural artisans. The Board has been promoting various trades like Carpentry and Blacksmithy, Leather goods manufacture, Soap making, Handmade Paper, Pottery and Bee keeping. The Board is also taking continuous efforts to promote and market these products through Government, Quasi Government and other retail outlets throughout the State. In order to promote these products, the Government of Tamil Nadu have given purchase preference to Khadi Board products.

3.1 Carpentry and Blacksmithy

Carpentry and Blacksmithy is one of the major activities of the Tamil Nadu Khadi and Village Industries Board. Eight Departmental units are functioning under the control of the Board and they are engaged in manufacture of the furniture required for State Government Departments, Institutions and Quasi-Government Departments. During 2010-2011, production to the tune of Rs.4.61 crore and the sales turnover of Rs. 4.66 crore have been achieved. It is programmed to produce Rs.10.00 crore worth of Carpentry and Blacksmithy items in 2011-2012.

46 3.2 Handmade Paper Industry

Handmade paper Industry is an Industry based on the principle of “Wealth from Waste”. At present, 4 paper units Pidagam (Villupuram District), Shenbagapudur (Erode District), Kovanur (Coimbatore District) and Udhagamandalam (The Nilgiris District) are functioning under the control of the Board. The items manufactured in these units consist of File pads, Raw pads, Thick Bond paper, Manifolding paper and corrugated boxes among others. These items are being supplied to High Court, Prison Department, other Government Departments and also to private Institutions. Most of the workers engaged in these units are from rural areas. These labourers are getting wages and Dearness Allowance under Minimum Wages Act. During 2010-2011, the production to the tune of Rs.52.78 lakh and the turnover from these units touched Rs.46.59 lakh. It is proposed to produce Rs.55.00 lakh of goods in 2011-2012. 3.3 Leather

Tamil Nadu Khadi and Village Industries Board has 15 Leather units functioning under its direct control, manufacturing Ammunition Boots, Shoes, Belts, Pistol and Ammunition Covers, Cash bags, File boxes etc., against the

47 orders received from the State Transport Corporations, Police Department, Fire and Rescue Services Department, Chennai Port Trust, Social Welfare Department etc. Footwear and sandals are also manufactured and sold to public through Khadi Kraft outlets. In order to improve the quality and workmanship and also to speed up the production, a tie-up arrangement has been made with M/s Central Footwear Training Institute, a Government of India undertaking. Around 500 artisans are directly and indirectly benefited in the manufacture of Leather products. Production to the tune of Rs.5.71 crore and sales to the tune of Rs.7.22 crore was achieved during 2010-2011. A production target of Rs.7.00 crore has been fixed for 2011-2012. 3.4 Soap Industry

Soap Industry is also an important industry functioning under the control of the Board. Soap varieties such as Neem, Sandal, Glycerine, Carbolic Soap, Detergent Cakes, Dish Wash Cakes, Cleaning and Detergent Powder are being manufactured in 20 units situated throughout Tamil Nadu and sold under a number of brand names. Some of the brands like ‘Kurinji’ sandal soap, ‘Mooligai’ herbal soap, Glycerine Toilet Soap, ‘Ezhil’ shampoo and ‘Sugapriya’ pain relief oil have been accepted

48 favourably in the market and enjoy a loyal following. The marketing is done predominantly through Board’s own outlets, Cooperative supermarkets, stores and fair price shops. The Board also supplies soaps to the welfare hostels and Institutions such as BHEL, Thoothukudi and Mettur Power Station. It is planned to improve their marketing through appointment of distributors throughout the State who will be distributing these products to private retailers. In addition, items like Jawadhu Powder, Agarbathies, Pain Oil, Herbal Shampoo, Sandal garlands, herbal tooth powder, shigaikai powder, Sambrani, dasangam and rose water are manufactured using natural ingredients and are being marketed through Khadi Kraft outlets. During 2010-2011, soap varieties worth Rs.4.75 crore were produced and sold for Rs.4.60 crore. A production target of Rs.5.00 crore has been fixed for 2011-2012. 3.5 Honey

Beekeeping is one of the core activities of the Board. The Board has about 100 Bee-fieldman who render necessary technical assistance to bee keepers. The Board purchases raw Honey from Bee Keepers, processes it and packs for bulk and retail sale. Marthandam in Kanyakumari district and Jamunamaruthur in Tiruvannamalai district are the major honey processing and packaging centres.

49 The honey produced by the Board has ‘Agmark’ certification and is priced lower than other brands sold in the market by 30-35%. Honey marketed by the Board is preferred by the consumers because of its naturalness and purity. Board is taking various steps to augment honey production in the State. Under the Western Ghats Development programme, beehives were distributed to 100 beekeepers in Tirunelveli district in 2009-2010 as 100% grant amounting to Rs.15.00 lakh. During 2010-2011, steps have been taken to construct a honey storage godown at an estimated cost of Rs.25.39 lakh at Amsi, Kanyakumari district. In 2010-2011, the Board has marketed honey worth Rs.75.04 lakh. A sales target of Rs.85.00 lakh has been fixed for 2011-2012. Effort will be taken to mobilize funds from various sources for increasing beekeeping activity and honey production. 3.6 Pottery

Pottery is another activity, the Board has sought to promote. It has 2 units of its own, at Sevvapet in Tiruvallur district and Veeraperumanallur in Cuddalore district to manufacture pottery items. The Board also has a ceramic unit at Virudhachalam. The items produced in these units are sold to Government departments and to public through Khadi Kraft outlets. Board also organizes an annual doll

50 exhibition cum sales (Kolu) in its Head quarters at Chennai to promote doll making and to introduce new designs to the public. 4. KHADI KRAFT RETAIL OUTLETS

In order to sell the Khadi and village Industries products, Khadi Board has been running retail outlets throughout the State. At present, there are 159 units spread over the entire State. In 2010-2011, these units taken together registered a turnover of Rs.28.10 crore. It is planned to achieve a turnover of Rs.30.00 crore in 2011-2012. To take advantage of changing economy and demand for hand made products, Board is planning to revamp retail outlets, by rationalizing them and improving their ambience and functioning. 5. REBATE ON SALE OF KHADI AND SILK VARIETIES

During the year 2010-2011, Government of India has modified the Rebate policy and introduced ‘Marketing Development Assistance’ (MDA) scheme based on production. Under this scheme, 20% on cost of production will be given as grant assistance by the Khadi and Village Industries Commission. Out of 20%, 5% will be given as incentives/bonus to spinners and weavers and the balance will be utilized by the institutions for publicity, discounts, etc.

51 In order to have uniformity in giving discounts, the Tamil Nadu Government has allowed 20% rebate on sale of cotton and polyvastra and 10% on silk varieties. By continuing this discount, the sale of Khadi varieties are maintained. The Government has sanctioned a rebate subsidy of Rs.10.00 crore for certified institutions and Rs.2.00 crore for Tamil Nadu Khadi and Village Industries Board during the year 2010-2011. 6. PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME

The Khadi and village Industries Commission is implementing Prime Minister’s Employment Generation Programme since 2008-2009. The margin money subsidy released during 2008-2009 to 2010-2011 is given below:-

Amount of No of Year subsidy Entrepreneurs (Rs. in lakh) 2008-2009 964 175.08 2009-2010 8745 1204.40 2010-2011 4143 1019.84

During the Current year, a sum of Rs.997.04 lakh has been allotted as subsidy under this scheme. The Board will conduct District level exhibitions, awareness camps and Entrepreneurship Development Programme Training at a cost of Rs.25.26 lakh.

52 The efforts taken by the Tamil Nadu Khadi and Village Industries Board in implementing the scheme in Tamil Nadu has been well appreciated by the Khadi and Village Industries Commission.

7. PRODUCTION AND SALES

The production and sales by the Board for the year 2010-2011 and production and sales target for the year 2011-2012 are as follows: (Rs.in lakh)

2010-2011 2011-2012 Sl. Name of the Achievement Target Industry No. Production Sales Production Sales

1 Khadi 759.76 1732.47 1300.00 1800.00 2 Village Industries a. Leather 571.09 722.29 700.00 800.00 b. Carpentry and Black 461.37 465.85 1000.00 1000.00 smithy c. Soap 474.67 460.46 500.00 500.00 d. Handmade 52.78 46.59 55.00 60.00 paper e. Beekeeping 70.42 75.04 75.00 85.00 f. Others 72.01 508.57 200.00 600.00 Total 1702.34 2278.80 2530.00 3045.00 GRAND TOTAL 2462.10 4011.27 3830.00 4845.00

53 8. PART-II SCHEMES 2011-2012 The schemes proposed for the year 2011-2012 are given below: (Rs.in. lakh) 1. Replacement of 2 Vehicles 11.00 (Kancheepuram and Salem) 2. Purchase of 15 Nos. of 6.00 Computer with printers Total 17.00

9. REDEPLOYMENT

In the process of reorganizing the Board, the Government has identified 719 employees as surplus and steps are being taken to redeploy them in other departments. Out of 719 employees, so far 456 employees have been redeployed and steps are being taken to redeploy the remaining employees.

10. FINANCIAL ASSISTANCE FROM GOVERNMENT

Assistance is being provided by the Government under “Net Cost Grant” to meet out the salary and pension to the Board staff and pensioners and under “Rebate” heads for sale of Khadi. Funds are also provided under Part-II for various Schemes. The financial support provided by the Government to the Tamil Nadu Khadi and Village Industries

54 Board and Tamil Nadu Palm Products Development Board in 2011-2012 in the Revised Budget is as follows:

Sl.No Subject Rs.in.lakh

1. Net Cost Grant 5520.00

2. Rebate Khadi Board 200.00

Certified Institution 600.00

3. Audit Fees 237.60

4. Part-II Schemes

1 Tamil Nadu Khadi and Village 17.01 Industries Board

2 Tamil Nadu Palm Products 1.03 Development Board

5. Grants to Western Ghat Development Programme

1. Tamil Nadu Khadi and Village 0.01 Industries Board

2. Tamil Nadu Palm Products 0.01 Development Board

6. Khadi Spinners and Weavers 50.00 Workers Welfare Board

Total 6625.66

55 11. REVIVAL OF KHADI AND VILLAGE INDUSTRIES

Action will be taken to redeploy remaining surplus manpower so as to reduce the establishment cost. Accordingly, administrative, production and sales units will be reorganized to improve synergy and coordination.

Steps will be taken to identify idle assets and to dispose them to bring in much needed capital to the Board to take up its marketing activities.

Efforts will be made to utilize marketing channels of Co-optex, Co-operatives and Sarvodaya Sanghs to increase sales turnover.

Vigorous efforts will be taken to identify suitable products that are made by hand which can find a mass market because of their uniqueness. Board will take all efforts to promote them so as to increase employment in rural areas.

56 TAMIL NADU PALM PRODUCTS DEVELOPMENT BOARD TAMIL NADU PALM PRODUCTS DEVELOPMENT BOARD was established under Tamil Nadu Act No. 15 of 1994 with objectives of economic upliftment of the workers engaged in palm product industry. The Board started functioning from 06.01.1995. The activities undertaken by the Board is detailed below:-  To start, encourage, assist and run palm products industry ;  To provide deserving persons with gainful employment in their homes through the organisation of palm products industry ;  To grant loans and give other assistance for the development of palm products industry ;  To organize co-operative societies for palm products industry ;  To conduct training centres and train persons at such centres or other centres outside the State of Tamil Nadu ;  To arrange for the supply of raw materials, tools and other implements to palm products industry and for sale and also for marketing of palm products ;

57  To arrange for publicity and popularisation of palm products by opening stores, shops, emporia, exhibitions and the like ;  To encourage and promote research in the technique of production of palm products or in the development of palm products industry.

There are around five crore of palmyarh trees in Tamil Nadu. Palm tree yields various edible products such as Neera, Palm Jaggery, Palm Jaggery Powder and Palm Candy. Further, a variety of products such as brushes, baskets, leaf plates and hand crafted decorative items are being manufactured from palm leaf and fibre. Most of these products have good potential and if marketed properly, have the capacity to generate substantial rural employment.

The Board intends to organize production and marketing of these products through dedicated co-operative societies. Accordingly, it has promoted Co-operatisization of palm products industry. As on date, 996 Palm Jaggery Co-opertive Societies, 8 District Palmgur Marketing Co-operative Federations and one Tamil Nadu State Palmgur and Fiber Marketing Co-operative Federation are functioning under the control of this Board. These Co-operatives undertake production and marketing of palm

58 products. In addition, palm products are being marketed through Khadi Kraft outlets and Private Channels.

There is no separate Budget for the Tamil Nadu Palm Products Development Board. The expenditure of this Board is included in the Budget of Tamil Nadu Khadi and Village Industries Board.

PRODUCTION AND SALES:- During the year 2010 – 2011, palm products worth Rs. 12.84 crore has been produced and the Sales turnover touched Rs. 13.43 crore. In the year 2011–2012, it is programmed to produce Rs.13.50 crore of Palm products. Similarly, a Sales target for Rs. 16.20 crore has been fixed.

ENHANCEMENT OF PURCHASE PRICE:- The procurement price of Neera has been increased from Rs. 7.00 to Rs. 10.00 per litre from the year 2010.

PURCHASE OF PALM JAGGERY:- During the year 2010 – 2011, Palm Jaggery was procured for Rs.10.91 crore and sold for Rs. 11.17 crore by the State / District Federations.

59 LICENCE:- Licence is being issued to the eligible palm workers, once in three years to tap, transport and sell neera and to produce palm jaggery. As on 31.03.2011, 50,999 licenced palmgur artisans have been given licences.

MARKETING OF NEERA:- In order to expand the market and improve shelf life, sale of Palm Neera in “Tetra Pack” has been introduced. As on 30.06.2011, 29,010 liters of Palm Neera has been packed in 1,25,118 Tetra Packs for sale all over the State. Efforts will be continued to improve the marketing of neera through infusion of technology.

Action has been taken to market the Palm Candy and Palm Jaggery Powder through PDS Shops, retail chains and stores specializing in organic food. Efforts to expand marketing channels will be explored.

The Board will take up training programmes to improve productivity of palmgur workers and also take up programmes to create awareness about palm products.

P.CHENDUR PANDIAN Minister for Khadi and Village Industries

60