MISSION Harit KHADI

A Khadi revamp Proposal

A rural job and wealth creation initiative by

Shri Giriraj Singh
Mos-MSME Govt. of India
1
At a Glance
❖ Solar charkha and loom as an alternative

❖ Generating employment opportunities

❖ Regaining Khadi’s lost glory in textile sector

❖ Creation of Wealth

❖ Impacts
 PM address of Solar
Charkha in “Mann ki Baat”
 Vision
● To generate employment for 5 crores
women/men in rural India

● Empowerment and Engaging women/men

meaningfully in their premises and thereby
generating wealth
Solar Enabled Charkha as
an Alternative

“A scientific study of the spinning-wheel will lead

on to Sociology. The spinning-wheel will not
become a power for the liberation of India in our
hands unless we have made a deep study of the
various sciences related to it. It will then not only
make India free, but point the way to the whole
world”.-Mahatma Gandhi
● Objective is, technology should not replace
humans 6
 Objective

● To create 1 lac rural jobs in each parliamentary

constituency (by 2016-2022)

● To cover artisans under various Government run

social security schemes like Atal Pension Yojna,PM
Suraksha Bima Yojna and PM Jivan Jyoti Beema Yojna

● To increase substantially the share of Khadi (presently

1.5%) in Indian Textile industry
Place of Khadi in Cotton
textile Sector

Power Loom 61.90%

Handloom 11%
Hosiery 21%
Mill 3.80%
Khadi 1.5%
 KVIC And KVIC Institutions

● KVIC was established under KVIC act 1956

● There are 2397 registered Khadi Institutions

● More than 7000 outlets

● Sales more than Rs.26000 Cr

● Various schemes like PMEGP, SFURTI, ISEC run by

KVIC.
 Historical Trends in
Production of Khadi
 
 
Year 200 200 200 200 200 200 201 201 201 201
4-05 5-06 6-07 7-08 8-09 9-10 0-11 1-12 2-13 3-14

Production
(Rs in
461.54 468.30 491.52 543.39 585.25 628.98 673.01 716.98 761.93 811.08
crores)

Cumulative
Employmen
t Generated
8.64 8.68 8.84 9.16 9.50 9.81 10.15 10.45 10.71 10.98
(in lakh
persons)
 Trend Analysis
● In real sense, production is gradually declining
● There is no substantial increase in number of people associated
with its production
The main reasons are as follows:
● Less wages (esp. as compared to MGNREGA)
● Exodus of artisans
● No profit motive of Charkha Sangh, hence Khadi can not be the
platform for employment
● Khadi being in the negative list of PMEGP till recently

Note-Recently, Khadi has been removed from the

negative list of PMEGP Scheme by the new
Government
Khadi as a Change
Agent
● A step towards Zero effect and Zero defect

● Nearly Zero Carbon Foot Print

● Minimum Water consumption (For 1 meter Khadi fabric, 3 liter water is required
and for 1 liter Mill fabric 55 liter water is required)

● Khadi production strengthens the local level economy

● Sustainable mode of employment generation

● Reduces gender economic inequality, as majority of artisans would be women

● Reduces the Drudgery

● Improves the quality of Yarn/Fabric

● Decentralization of Textile production

● Employment generation throughout India

The Textile Market Structure

Fabric and
Yarn Market

Textile & Apparel

Market

Apparel (71%)
Textile(29%)
(RTW/RTS)

Home Textile
(7%)
Women's Kids
Menswear
(31%) wear Wear
Technical (27%) (13%)
Textile (22%)
13
 In the past…..

● The technology was experimented at Eight

different locations, but could not be scaled up

● IMG meeting, involving Secretary MNRE

decided in Favor of introducing 2 lacs Charkha
every year with 30-50% margin money

● The Hon’ble Minister has taken up the project

on Pilot basis at Khanwa, Nawada, Bihar under
the Aadarsh Gram Yojna
Positioning of Green Khadi

Khadi Vastra

Cotton Khadi Wool Khadi Silk Khadi

(J&K,HP,NE) (NE,WB,Bihar,UP)

Khadi Poly Khadi

Green Khadi/Lok Vastra
Why Khadi production
needs to be scaled up
On 3rd Oct 2014, PM Modi in his program
“Mann Ki Baat” made an appeal to the
nation to adopt Khadi which resulted in
Increase in sales of Khadi between 60% To 125%
1) From Customer’s perspective

There is a latent demand for Khadi due to its inherent quality of being
environment friendly

2) From population growth perspective

10 year population growth at 18%, i.e 1.8% pa

2 cr people added to population every year

Assuming demand of 26 mtr per person as per textile census, there is

an ever increasing demand for 52 cr mtr, which can be tapped by
Khadi.

Additionally Yarn produced from solar charkha can be supplied to

handloom sector (which has 11% share in total textile production).
 Cont…
3) From employment perspective

A mill with 25000 spindle capacity, (with approx. Rs.100 cr investment)

employs 150-200 people, hence input cost per capita employment is
Rs.66 lacs.

On other side it requires Rs. 1lac to employ One person by the means
of Solar Charkha

4) Increase in production

Increasing demand of eco friendly clothes at national and international

level, as it emits zero carbon

Demand for organic and environmentally friendly products goes up as

evident in organic sector.

This increase in demand should be catered by taking the First movers

advantage
 Comparison of Spinning Mill and Solar
Charkha

Sl. No.
Spinning Mill Solar Charkha
1. 25000 Spindles - 1 in no. 782 Solar Charkha in no.
Capacity Assuming 32
spindles/Charkha

2. Manpower - 150 782 women (i.e. 5 times)

requirement (1 shift)
3. Power Consumption/day - 50- All Solar renewable energy,
70 thousand units KWH/day No Carbon footprint.
4. Project Cost APPROX 100 7 to 8 cr (Without PMEGP Margin
crores Money)
5. Centralized production & fixed Decentralized productions &
variety of Yarns production. multiple varieties of Yarns
can be produced.
 Comparison of Artisans’ Income and
Cost Benefit
Existing – Solar Remarks
NMC Model Chrkha
(8 Spindles) Model
(2*16=32
Spindles)
Daily Production (40 Count) 15 Hank 240 Hank • Production up by more
(400 gms) (6 Kgs.) than 20 times.
• Least Drudgery involved
Daily Wages,per hank, Rate Rs. 5/- Rs. 1.50/- • Wage component down
(Rs.) by 80%
• More than Four times
Daily Wages Gross Rs. 75/- Rs. 360/- Income appreciation to
Artisans.
• With drastic reduction in
Monthly Income (25 Working Rs. 1825/- Rs. 9000/- wages cost. Yarn cost is
days) quite competitive.
 Financial Model

Solar Charkha Unit Cost

2 Solar Charkha of 16 Spindle Rs. 1,00,000
Or
1 Solar Charkha of 32 Spindle along with
the working capital

● 1) PMEGP- 25% To 35% margin money

● 2) MNRE Subsidy

● 3) Bank Loan
 Solar Charkha
Sl.   Daily Monthly
No. (assuming 25 working
days)
1 Wages income @ 1.5/- per Hank(240*1.5) Rs. Rs. 9000.00
(Assuming 240 Hank /6Kg production) 360.00

2 EMI (for 5 years)   (-) Rs. 600.00

3 Atal Pension Yojana   (-) Rs. 271.00

(5000/- pension)
(21 years of artisan)

4 PM Suraksha Bima Yojana   (-) Rs. 1.00

(Rs 12/annum)

5 PM Jiwan Bima Yojana   (-) Rs. 28.00

(Rs 330/annum)

  Net Income   Rs. 8100.00

Solar enabled loom
Sl.   Daily Monthly
No. (assuming 25 working
days)
1 Wages income @ 10/- per meter Rs. Rs. 8000.00
Assuming 32 metre weaving per day 320.00

2 EMI (for 5 years)   (-) Rs. 900.00

3 Atal Pension Yojana   (-) Rs. 271.00

(5000/- pension)
(21 years of artisan)

4 PM Suraksha Bima Yojana   (-) Rs. 1.00

(Rs 12/annum)

5 PM Jiwan Bima Yojana   (-) Rs. 28.00

(Rs 330/annum)

  Net Income   Rs. 6800.00

 Financial Model cont….
● In this financial model, there would be Tri partite agreement among
artisans, Khadi institutions and the bank. Artisans would be linked up
with Bank through his/her Jan Dhan account to facilitate all credit/
debit with regard to loan, social security schemes, wages and
enterprise related activities.
● KVIC will provide the linkage to provide the raw material i.e. roving
cotton and arrange for the buyback of the yarn produced or weaved
cloth.
No. of Monthly Income Income per annum Total Income (Rs)
weavers/ (Rs) (Rs)
spinners

400 Spinners* 8100 97,200 3,88,80,000

500 Weavers* 6800 81,600 4,08,00,000
At Village Level 7,96,80,000

*Note: Assuming 1000 households in a village and the Mission Khadi reaches to
90% of the household. Out of which 400 are spinners and 500 are weavers.
Wealth creation at village

• Cost of 1Kg of roving cotton = Rs. 150

• 1Kg of roving cotton can produce 1 Kg of yarn
which can further produce approx. 8 mtrs of cloth
• Sale Price of 8 mtrs of grey cloth = Rs. 400
• Creation of value by going up the Khadi value
chain (400-150) = Rs. 250
• Creation of wealth (400*5*300*250) = Rs
15,00,00,000 (15 Cr)
• This wealth creation can be further enhanced by
going higher up in the Khadi value chain like
producing white cotton, dyeing and apparel making.
 Marketing
● Search for new market as per the count of the yarn
● Target Big Institutions-Railways, Army, Police, Hospitals,
Schools, private apparel manufacturers etc
● Revamping of 7000 KVIC retail stores
● Bringing designer inputs catering to the latest fashion trends
and targeting youth by products like “Denim”
● Tie ups with readymade manufacturers and encourage them
to display Khadi made products
● Building on International demand and target 2.5Crore NRI’s
across the world.
 The Way Forward
● Establishment of Green Khadi Cluster

● Under the cluster model ginning, roving, spinning,

weaving, herbal dyeing (vegetable colors), finishing,
stitching and apparel making will take place in
surrounding villages

● Promotion of Ancillary industry

● Promotion of Khadi designing and branding

● Further R&D for improving the Solar Charkha and Solar

power loom models
 Impact
• Spur in the demand of cotton – can revive cotton
agriculture by supporting higher MSP

• Strengthening local level economy

• Decentralization of production.

• Strengthening women’s standing & voice in family and

society

• Increased income in the hands of the women will promote

sanitation & education ( especially girl child education )

• Favorable effect on industrial production due to increased

demand of Solar Charkha and solar loom

• Promotion of renewable energy i.e. solar energy and

• Reduces rural distress

 Present schemes in Khadi

1) Revamped SFURTI-Initiated in Oct,2005

2) PMEGP
3) ISEC Yojana
4) MDA Policy
5) Support in Production enhancement, design and
packaging
6) Work shed Yojana for Khadi artisans
7) Janshree Bima Yojana for Khadi artisans
 The Khanwan Experiment
● Sansad Adarsh Gram Khanwan has been chosen for the
pilot run of Solar Charkha model. A training cum
production centre is being established

● 208 Solar Charkha (8 and 10 spindle) has been provided

with the help of KVIC, PMEGP

● To promote spinning among women they are currently

being provided with an inflated wage rate of Rs 200/kg

● The wage will be gradually reduced to Rs 60/Kg once the

women are completely trained and start handling 24
and 32 spindle charkhas and thus spinning 5 Kgs of yarn
per day (8 hours).
 The Denim Production: We
are Competent
Pilot Stage Commercial stage
Cost of Roving cotton 1kg 150 150
Cost of spinning 200 60
Processing cum Weaving (4 mtr Denim) 240 240
Overheads 100 100
Cost of Denim 690 550
Cost of Denim/metre 172.5 137.5
Prevalent Market Price 230 230
Margin 57.5 92.5

Note: 1 Kg of 33 count yarn produces 4 meters of denim.

Overheads include administrative cost, rent, repair & maintenance,
depreciation
among others.
A part of margin can be utilised for effective, branding and marketing.
 Khanwan Model-Scaling up
1) In next phase, 800 solar charkha with 24 and 32 spindle will
be introduced for scaling up the production.
2) A trainer’s training academy will be established to produce
master trainers (spinners and weavers).
3) This model should be further replicated to all 790 Sansad
Adarsh Gram in the first phase of rolling out.
4) A rural cotton textile hub should be promoted by keeping the
Adarsh Gram in centre.
5) In the entire Khadi Value chain one Charkha provides 10
employment (From Ginning to selling of finished product).
6) An inter-ministerial committee of MSME, Textile and MNRE
should be formed for close coordination.
 Govt. outlay on promoting this
employment scheme
Total Outlay
Cost of Charkha (32 spindle) 1.00 Lakh 7930 Cr
(793*100000)
Margin Money @ 35% under PMEGP 0.35 2775 Cr
1) A) 1st Phase: 793 Sansad Adarsh Gram will require a margin money of
2,775 Cr. (79300000* .35)

B) A+ Khadi institutions would be covered under Solar

Charkha/loom mission.

2) This subsidy can be offset by the excise, sales tax and VAT. This will
amount to approximately 2000 Cr

3) Further every single full time self employment will reduce the outlay
on MNREGA

4) MP can support in establishment of training cum production center

using his MPLAD funds in his Sansad Aadersh Gram.
 Suggestions

● Government can continue with giving policy support to

existing mills, but further no schemes should be made
to encourage new spinning mills.
● An appeal made by the PM increased the Khadi sales by
many fold and also motivated many people to get
actively involved in the Khadi revamp process. Taking
this initiative forward Hon PM should organize a
meeting with the leading fashion designers, Weavers,
Khadi entrepreneurs to take this revolution to next
level.
● Tie ups with leading textile and apparel manufacturers
like Arvind Mills, Levis, etc for denim sale.
 Policy support from Ministry of
Textiles

1) Pilot Scheme of Institutional up gradation of Power looms

2) Hire-Purchase scheme for Power loom sector

Technological Up gradation fund scheme i.e. TUFS

3) CFC

4) Corpus for yarn bank

5) Scheme for incubation in Apparel Manufacturing (SIAM)

6) Scheme for Integrated Textile Parks (SITP)

7) Comprehensive Handloom Development Scheme (CHDS)

Thank you