New Delhi: Union minister for MSME Nitin Gadkari has approved a unique employment generation program proposed by Khadi and Village Industries Commission (KVIC) to make India Aatmanirbhar in Agarbatti production. The program named as “Khadi Agarbatti Aatmanirbhar Mission” aims at creating employment for unemployed and migrant workers in different parts of the country while increasing domestic Agarbatti production substantially.
The pilot project will be launched soon and on full-fledged implementation of the project, thousands of jobs will be created in the Agarbatti industry.
Under the scheme, KVIC will provide Automatic Agarbatti making machines and powder mixing machines to the artisans through the successful private Agarbatti manufacturers who will sign the agreement as business partners. KVIC has decided to procure only locally made machines by Indian manufacturers which also aims at encouraging local production.
KVIC will provide 25% subsidy on the cost of the machines and will recover the remaining 75% of the cost from the artisans in easy installments every month. The business partner will provide the raw material to the artisans for making Agarbatti and will pay them wages on job work basis. Cost of artisans’ training will be shared between KVIC and the private business partner wherein KVIC will bear 75% of the cost while 25% will be paid by the business partner.
A two-party agreement to this effect will be signed between KVIC and the Private Agarbatti manufacturer for successful running of the project on PPP Mode.
The scheme has been designed in wake of the two major decisions – import restriction on Raw Agarbatti and increase in import duty on Bamboo sticks – taken by the ministry of commerce and ministry of finance respectively on the initiative of Gadkari.
KVIC chairman Vinai Kumar Saxena said the two decisions of the Central Government created a huge employment opportunity in the Agarbatti industry.
The program aims at handholding artisans and supporting the local Agarbatti industry. The current consumption of Agarbatti in the country is approximately 1490 MT per day; however, India’s per day production of Agarbatti is just 760 MT. There is a huge gap between the demand and the supply and hence, immense scope for job creation.
