Automatic Agarbatti Making and Powder
Mixing Machines for “Hand Made” Khadi Industry under
PPP Mode
·
Agarbatti
Industry Reduced to Job Worker Status with Rs. 500
per day for Workers and Rs. 300 for Mixers
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 proposal was submitted to the Ministry of MSME
for approval last month. 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.
The scheme designed by KVIC on PPP mode is unique in the
sense that in a very less investment, it will create sustainable employment and
help private Agarbatti manufacturers to scale up Agarbatti production without any capital investment by
them. 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.
Each automatic Agarbatti making
machine makes approximately 80 kg Agarbatti per day
which will provide direct employment to 4 persons. One powder mixing machine,
to be given on a set on 5 Agarbatti making machines,
will provide employment to 2 persons.
The current job work rate for Agarbatti
making is Rs 15 per kg. At this rate, 4 artisans
working on one Automatic Agarbatti machine will earn
minimum Rs 1200 per day by making 80 kg of Agarbatti. Hence every artisan will earn at least Rs 300 per day. Similarly, on powder mixing machine, each
artisan will get a fixed amount of Rs 250 per day.
As per the scheme, the wages to the artisans will be
provided by the business partners on weekly basis directly in their accounts
through DBT only. Supply of raw material to the artisans, logistics, quality
control and marketing of the final product will be the sole responsibility of
the business partner. After recovery of the 75% cost, the ownership of the
machines will automatically be transferred to the artisans.
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 Mr. Gadkari.
KVIC Chairman Vinai Kumar Saxena said the two decisions of the Central Government
created a huge employment opportunity in the Agarbatti
industry. “In order to encash the huge employment
generation opportunity, the KVIC designed a program namely “Khadi
Agarbatti Aatmanirbhar
Mission” and submitted to the Ministry of MSME for approval,” Saxena said.
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.