The Technical Efficiency of Khadi and Village Industries Clusters … · 2019-01-08 · July - August, 2013 2 socio - economic voices SFURTI is Scheme of Fund for Regeneration of

www.indiastat.com July - August, 2013 1 socio - economic voices

The Technical Efficiency of Khadi and Village Industries Clusters in India (Dr. E. Bhaskaran.B.E, M.B.A., Ph.D., M.I.E., (D.Sc)., Deputy Director of Industries and Commerce, Government of Tamil Nadu) 1. Introduction The Khadi and Village Industries (KVI) sector occupies a significant role in the total manufacturing sector of India.

For the development of KVI sector, the Government is implementing various programmes / schemes through Khadi

and Village Industries Commission (KVIC) for assisting eligible applicants in setting up village industries, Rebate

scheme for Khadi Institutions, Interest Subsidy Eligibility Certificate (ISEC) scheme for providing bank loans, Rural

Industries Service Centre (RISC) for providing common facility centres (CFCs) to provide infrastructure and service

support, Scheme of Fund for Regeneration of traditional Industries (SFURTI) for development of clusters in Khadi,

Village industries and Coir Sectors, Products development, Design Intervention and Packaging (PRODIP),

marketing export promotion, exhibition at district, state, zonal and national level, design facility, brand building etc.

As a result of these efforts, KVI sector has registered a growth of around 9.6 % in 2010-11 over the performance of

previous year. The total KVI production during 2011-12(up to 15 February 2012) is estimated at Rs. 23,551.64

crore (Khadi Rs. 637.95 crore and V.I. Rs. 22,913.69 crore) as against Rs. 19871.86 crore (Khadi Rs. 673.01 crore

and V.I. Rs. 19198.85 crore) in 2010-11. Similarly, estimated sales of KVI products up to 15 February 2012 is Rs.

25155.30 crore (Khadi Rs. 821.10 crore and V.I. Rs.24334.20 crore) in 2011-12 as against Rs. 25792.99 crore

(Khadi Rs. 917.26 crore and V.I. Rs. 24875.73 crore) of the previous year. The total cumulative employment in the

KVI sector is estimated to have also increased to 130.12 lakh persons (10.35 lakh in Khadi and 119.77 lakh in V.I.)

by 15 February, 2012 as against 113.80 lakh persons (10.15 lakh in Khadi and 103.65 lakh in V.I.) of corresponding

period of previous year.

2. Literature Survey India has a rich tradition in traditional industries. The eco-friendly products of traditional industries not only have

great potential for growth in production and export but can also lead to widespread generation of employment

opportunities in the rural areas of the country. With a view to making the traditional industries more productive and

competitive and facilitating their sustainable development, the Central Government announced the setting up of a

fund for regeneration of traditional industries, with an initial allocation of Rs. 100 crore. Pursuant to this

announcement, a Central Sector Scheme titled the “Scheme of Fund for Regeneration of Traditional Industries

(SFURTI)” has been drawn up and approved at a total cost of Rs. 97.25 crore. The Scheme will be implemented by

the Union Ministry of Agro and Rural Industries (ARI) and its organisations and institutions, in collaboration with

State Governments, their organisations concerned, non-Governmental organisations, etc.


SFURTI is Scheme of Fund for Regeneration of Traditional Industries.

Ministry of MSME has launched this scheme in the year 2005 with the view to promote Cluster

development. KVIC is the nodal Agency for promotion of Cluster development for Khadi as well as for V.I.

products.

As on date, a no. of 76 Clusters have come up as per the scheme and many of these clusters have

completed.

Outcome of the programme was very much encouraging which speaks of the enhancement of wages of

Artisans and the increase in production and sales of the I.A. (Implementing Agency).

Evaluation studies conducted for SFURTI Clusters has rated the programme, as quite successful.

Ministry of MSME proposed enhanced budget allocation during 12th five Year Plan for the promotion of the

scheme in a bigger way, with certain modification.

Due to global recession there is need for the study on the Technical Efficiency of KVIs Clusters in India.

3. Objectives of the Study The objectives are 1. To study the list of Khadi and Village Industries Clusters exists in India.

2. To Study the Correlation Analysis, Technical Efficiency (θ) and Peer Weights (λi) of Khadi Clusters in India.

3. To Study the Input Slacks (S-) and Output Slacks (S+) of Khadi Clusters in India.

4. To Study the Variable Returns to Scale of Khadi Clusters in India.

4. Methodology The methodology adopted is collection of data from, KVIC, Government of India and analyzing with Data

Envelopment Analysis of Input Oriented Banker Charnes Cooper (BCC) Model by taking No. of Artisans Benefited

and Production as inputs and Annual Sales, Enhanced Wages for Spinner and Weaver as outputs. A DMU is

efficient if θ = 1, S- = 0 and S+ = 0.

5. Statistical Analysis 5.1 Village Industries Clusters The list of Village Industries Cluster exists in India is given in Table 1.


Table 1: List of Village Industries Clusters in India

Sr No. Cluster Name Industry State 1 Dress Making Cluster Other Arunachal Pradesh 2 Meghalaya Cane and Bamboo Cane & Bamboo Meghalaya 3 Tripura Beekeeping Cluster Bee-Keeping Tripura 4 Cane & Bamboo Cluster Pardo Cane & Bamboo Manipur 5 Barpeta Cane and Bamboo Cluster Cane & Bamboo Assam 6 Gauripur Cane and Bamboo Cluster Cane & Bamboo Assam 7 Carpentry Cluster Carpentry Wooden Works Manipur 8 Mon Beads Cluster Carpentry Wooden Works Nagaland 9 Gandhi gram Craft Pros Cluster Cane & Bamboo Tripura 10 Mizoram Cane and Bamboo Cluster Cane & Bamboo Mizoram 11 Muzaffarpur Beekeeping Cluster Bee-Keeping Bihar 12 Murshidabad Cane & Bamboo Cluster Cane & Bamboo West Bengal 13 Luburising Palm Jaggery Cluster Cane & Bamboo, Food Processing

and Health Drink West Bengal

14 Singhbhum Beekeeping Cluster Bee-Keeping Jharkhand 15 24 Paragana Beekeeping Cluster Bee-Keeping West Bengal 16 Arikama Bamboo Cluster Cane & Bamboo Orissa 17 Dausa Pottery Cluster Other Rajasthan 18 BaramulaEmb. Cluster Embroidery Jammu Kashmir 19 LadakhSeabuck Throne Cluster Food Processing and Health Drink Jammu Kashmir 20 Bhiwani Wooden Beads Cluster Carpentry Wooden Works Haryana 21 Handmade Paper Cluster Hand Made Paper and Fibre Haryana 22 Jammu Kathua Beekeeping Cluster Bee-Keeping Jammu Kashmir 23 Phulkari Cluster Embroidery Punjab 24 Una Plant Fibre Cluster Hand Made Paper and Fibre Himanchal Pradesh 25 Wooden Handicraft Cluster Carpentry Wooden Works Punjab 26 Punjabi Juti Cluster PCBI Punjab 27 Chamoli Beekeeping Cluster Bee-Keeping Uttaranchal 28 PratapgarhAmla Cluster Food Processing and Health Drink Uttar Pradesh 29 KanaujiAgarbathi Cluster Agarabatti Uttar Pradesh 30 Horns and Bone Cluster Horn & Bone Uttar Pradesh 31 Bamboo Craft Cluster Cane & Bamboo Madhya Pradesh 32 Lac Cluster Other Madhya Pradesh 33 Ektal Bell Metal Cluster Metal and Pottery Chhattisgarh 34 Sindhudurg Food Processing Cluster Food Processing and Health Drink Maharashtra 35 Gadchiroli Pottery Cluster Metal and Pottery Maharashtra 36 GujaratNeera Cluster Food Processing and Health Drink Gujarat 37 Chittoor Wood Carving Cluster Carpentry Wooden Works Andhra Pradesh 38 Amrawati Beekeeping Cluster Bee-Keeping Maharashtra 39 HindupurAgarbatti Cluster Agarabatti Andhra Pradesh 40 Devarakonda Jewellery Cluster Traditional Jewellery Andhra Pradesh 41 Coorg Beekeeping Cluster Bee-Keeping Karnataka 42 NachiyarkovilBrass metal Cluster Metal and Pottery Tamil Nadu 43 Siddha and Ayurveda Cluster Ayurveda Tamil Nadu 44 Kalpetta Bamboo Craft Cluster Cane & Bamboo Kerala 45 Kozhikode Bee Keeping Cluster Bee-Keeping Kerala 46 Mehsi River Shell Button Cluster River Shell Button and Lac Bihar 47 Gandhi gram Craft Processing Cluster Cane & Bamboo Tripura 48 Sikkim Bee Keeping Cluster Bee-Keeping Sikkim

Source: KVIC, Government of India.


5.2 Khadi Industries Cluster The list of Khadi Clusters exists in India is given in Table 2.

Table 2: List of Khadi Clusters in India

Sr

No. Cluster Name Industry State/ Office Cluster products

1 DimapurKhadi Cluster Cotton Nagaland EriChadar; Eri scarf, Readymade Garments, Eri Than, Silk Shirting

2 MukulmuaKhadi Cluster Silk Assam Silk Saree, Silk Shirting, Eri, Muga&Mulberry Silk etc.

3 SrtKhadi Cluster Cotton Maharashtra Dari, Bed sheet, Muslin Shirting, National Flag Cloths, Poly Shirting etc.

4 SurendranagarKhadi Cluster

Cotton Gujarat Shirting, Coating, Dress Material, Dari,kurta, Towel, Napkin, Denim, Chaddar,Bedsheet etc.

5 NawadaKhadi Cluster Cotton Bihar Woollen Product (Sweater, Muffler, Blanket) ,Mataka, Katiya, Tasar, endi, Muslin, Khes,Dari etc.

6 PalamauKhadi Cluster Woollen Jharkhand Blanket 7 MaldaKhadi Cluster Silk West Bengal Silk dress materials (Gents, ladies and kids),

Saris (printed, Jacquard, embroidery), Muslin Khadi, Readymade Garments, etc.

8 BelurKhadi Cluster Cotton Karnataka National Flag, Shirting, Polyvastra Shirting & Coating, Dress Material, College Uniform etc.

9 HebballiKhadi Cluster Cotton Karnataka National Flag, Shirting, Polyvastra Shirting & Coating, Dress Material, College Uniform etc.Cotton, Silk Shirting, Dhotis, Bedsheets,Lungies etc.

10 SulurKhadi Cluster Cotton Tamil Nadu Cotton, Silk Shirting, Dhoties, Bedsheets,Lungies etc.

11 Coimbatore Khadi Cluster Cotton Tamil Nadu Cotton Khadi Shirting, Dhotis, Towels and Bed sheet, Silk Sarees, Shirting, Embroidery Silk Sarees and Printed Silk Sarees, Polyvastra Shirting and Dhotis etc.

12 KaraikudiKhadi Cluster Cotton Tamil Nadu Puliyangudi Cotton Lungies, Handkerchief, Jacquard Bed sheets, Printed and Woven Design Shirting etc.

13 SircillaKhadi Cluster Cotton Andhra Pradesh

Shirting, Towels, Bed Sheet, Coating, Carpets, Mosquitoes nets etc.

14 SrikakulamKhadi Cluster Cotton Andhra Pradesh

Dhoti, Muslin, Sarees, Lungies, Towels, Hankies etc.

15 Thalappally Cotton Khadi Cluster

Cotton Kerala Dhotis, SheethalKhadi Branded Shirts, Cotton Mats, Lady garments

16 Thiruvananthapuram Khadi Cluster

Cotton Kerala Muslin Shirting, Kuppadamdhothy, Khadi Branded Shirts, Fine Cotton Shirts.

17 PondicherryKhadi Cluster Cotton Tamil Nadu Readymade Shirts, Suites ,mattress, Pillow, Bed cover etc.

18 Amritsar WoollenKhadi Cluster

Woollen

Punjab Shawl, Chader, Tweeds, Blankets, Namda, gubba, shirting

19 BandiporaWoollenKhadi Cluster

Woollen

Jammu Kashmir

Shawls, Sweaters, Caps, Bandies, Coats, Trousers, Tweeds (Shirting & Coating) etc.

20 BassiKhadi Cluster Cotton Rajasthan Cotton, Polyvastra, Khes, Dari, Towel etc. 21 GuduraWoollenKhadi

Cluster Woollen

Jammu Kashmir

Tweeds (Coating & Shirting), Shawls, Chadder, Hosiery Goods, Pullovers, Bundies, Mufflar,


Socks, Caps & Pashmina Goods. 22 Kurukshetra Cotton Khadi

Cluster Cotton Haryana Shirting, Duster, Cloth, Towel, Traditional

Embroidery, Ladies Suits, Readymade Garments, Bed Sheets, RajaiAbhra, Dari etc.

23 Gorakhpur Khadi Cluster Cotton Uttar Pradesh

Woollen product- (Sweater, Muffler, Blanket) Silk-(Mataka, Katiya, Tasar, Endi), Muslin, Khes, Dari etc.

24 HaldwaniKhadi Cluster Cotton Uttaranchal Shirting, duster, khes, Woollen shawl, Tweed, jacket, Readymade shirts, Khadi bags etc.

25 Rae BareliKhadi Cluster Cotton Uttar Pradesh

Cotton &Polyvastra

26 TikarmafiWoollenKhadi Cluster

Woollen

Uttar Pradesh

Readymade garment

27 SitapurKhadi Cluster Cotton Uttar Pradesh

Bed sheet, Pillow Cover, Readymade Shirt, Kurta, Ladies Tops etc.

28 SRT Khadi Cluster Cotton Maharashtra Dari, Bed sheet, Muslin Shirting, National Flag Cloths, Poly Shirting etc.

5.3 CORRELATION COEFFICIENCY ANALYSIS The correlation coefficient Analysis is given in the table 3.

Table 3: Correlation Coefficient Analysis

Variables No. of Artisans benefited

Production in Rs. lakhs

Annual Sales in Rs. lakhs

Enhanced Wages for

Spinner

Enhanced Wages for

Weaver No. of Artisans benefited

1.00 0.17 0.21 0.07 0.03

Production in Rs. lakhs

0.17 1.00 0.86 0.09 0.06

Annual Sales in Rs. lakhs

0.21 0.86 1.00 0.14 0.14

Enhanced Wages for Spinner

0.07 0.09 0.14 1.00 0.82

Enhanced Wages for Weaver

0.03 0.06 0.14 0.82 1.00

Source: Computed Data There is high degree of relationship exists between Production and Annual Sales. 5.4 Technical Efficiency of Khadi Clusters 5.4.1 Data Structure The No. of Artisans Benefited and Production is taken as inputs and Annual Sales, Enhanced Wages for Spinner

and Weaver is taken as outputs corresponding to 28 DMUs (Clusters).


5.4.2 Data Envelopment Analysis- Banker, Charnes and Cooper Model (BCC Model) Input Oriented BCC Model (BCC-I)

Min Z0 = θ –ε 1 S+ - ε 1 S-

θ, λ, S+ , S-

Subject to Y λ - S+ = Y0 θX0 - X λ -S- = 0

1 λ ≥ 1

λ, S+ ,S- ≥0

5.4.3 Model Description The Scalar variable θ appears in the primal problem, is the reduction applied to all inputs of DMUs to improve

efficiency. This reduction is applied simultaneously to all inputs and results in a radial movement toward the

envelopment surface. The presence of non-Archimedean (Infinitesimal constant) ε in the primal objective function

effectively allows the minimization overθ to preempt the optimization involving the slacks. Thus, the optimization

can be computed in a two-stage process with

i) maximal reduction of inputs being achieved first via θ

ii) then in the second stage movement on to the efficient frontier is achieved via the positive input and

output slack variables (S-,S+ )

Here, the constraint

1 λ ≥ 1 is known as convexity constraints, which will admit variable return to scale (VRS).

The above discussion leads to form the following statement.

A DMU is efficient if and only if

a) θ = 1,

b) All slacks are zero. S- = 0 and S+ = 0.

5.4.4 Computing Methodology Initially we consider Dimapur Khadi Cluster, as the studied DMU and the LP Model is formulated as given below Min θ0


Subject to 98.12λ1 + 177.00λ2 +………….. 346 λ28≥98.12 Output Constraints

3.00λ1 + 3.00 λ2 +………….. 1.6λ28≥3.00 Output Constraints

1.5λ1 + 1.5 λ2+………….. 1.5λ28≥1.5 Output Constraints

326 θ0 - 326 λ1- 718λ2- ……… 613 λ28≥0 Input Constraints

94.20 θ0 –94.20 λ1- 203λ2- ……… 177.39 λ28≥0 Input Constraints

λ1+λ2+… λ28=1.

λ1,λ2,… λ28≥0, θ0 is unrestricted.

By solving the above and continuously changing the studied DMUs we get the values we get the value of λi’s and

θi’s for each DMU.

5.4.5 Efficiency Scores The value of θi’s being the efficiency scores of the Clusters are given in the Table 4 and in the Figure 1.


Table 4: Efficiency Scores of the Khadi Clusters in India Sl.No

Clusters in India No. of Artisans

benefited

Production in

Rs.lakhs

Annual Sales in Rs.lakh

s

Enhanced Wages for

Spinner (%)

Enhanced Wages for

Weaver (%)

Score

θi’s

Rank

1 DimapurKhadi Cluster 326 94.20 98.12 3.00 1.50 1.00 1 2 MukulmuaKhadi Cluster 783 203.00 177.00 3.00 1.50 1.00 1 3 SrtKhadi Cluster 613 177.39 346.00 1.60 1.50 1.00 1

4 Surendranagar Khadi Cluster

536 221.08 144.00 1.50 2.00 1.00 1

5 NawadaKhadi Cluster 525 232.00 331.58 1.40 1.34 0.80 17 6 PalamauKhadi Cluster 325 115.60 237.87 0.60 1.00 1.00 1 7 MaldaKhadi Cluster 504 83.69 79.80 0.89 1.70 1.00 1 8 BelurKhadi Cluster 1296 216.00 280.00 0.40 0.40 0.55 25 9 HebballiKhadi Cluster 1346 260.00 260.00 0.15 0.20 0.44 27

10 SulurKhadi Cluster 572 191.11 147.64 0.30 0.40 0.57 24

11 Coimbatore Khadi Cluster

510 545.32 597.78 0.56 0.60 0.84 16

12 KaraikudiKhadi Cluster 424 420.33 619.01 0.15 0.50 1.00 1 13 SircillaKhadi Cluster 850 89.75 212.04 0.25 0.38 0.95 13 14 SrikakulamKhadi Cluster 475 78.00 98.00 0.50 0.25 0.90 15

15 Thalappally Cotton Khadi Cluster

1684 553.02 856.21 2.82 2.18 1.00 1

16 Thiruvananthapuram Khadi Cluster

520 501.39 558.04 0.40 0.50 0.79 18

17 PondicherryKhadi Cluster 536 271.30 144.69 0.25 0.25 0.61 22

18 Amritsar WoollenKhadi Cluster

632 14.50 60.00 0.05 0.10 1.00 1

19 BandiporaWoollenKhadi Cluster

1200 205.00 225.00 0.40 0.45 0.48 26

20 BassiKhadi Cluster 563 198.10 275.72 0.50 0.93 0.67 21

21 GuduraWoollenKhadi Cluster

1150 195.44 187.30 0.50 0.62 0.43 28

22 Kurukshetra Cotton Khadi Cluster

570 210.00 218.00 0.55 0.55 0.57 23

23 Gorakhpur Khadi Cluster 521 423.00 876.09 1.00 1.00 1.00 1 24 HaldwaniKhadi Cluster 1150 210.00 510.00 0.50 0.50 1.00 1 25 Rae BareliKhadi Cluster 500 446.56 696.59 1.00 0.40 0.93 14

26 TikarmafiWoollenKhadi Cluster

480 140.00 112.00 0.40 0.50 0.68 20

27 SitapurKhadi Cluster 427 266.85 225.00 0.50 0.35 0.76 19 28 SRT Khadi Cluster 613 177.39 346.00 1.60 1.50 1.00 1 Source: KVIC and Computed Data As per table 4 and figure 1, nearly 12 clusters have θi = 1 and rank=1 and they are highly efficient. The efficiencies

and ranks of other clusters θ < 1 are also given. They have to perform well to attain 100% efficiency and rank 1.

The overall efficiency of the Khadi Clusters in India is 0.82 which is much satisfactory. It needs only 18% to attain

100% efficiency.


Frequency of highly efficient cluster is given in the Table 4.

Table 4: Frequency in Reference Set

Peer set Frequency to other DMUs

DimapurKhadi Cluster 9

SrtKhadi Cluster 0

PalamauKhadi Cluster 13

KaraikudiKhadi Cluster 2

Amritsar Woolen Khadi Cluster 6

Gorakhpur Khadi Cluster 3

HaldwaniKhadi Cluster 5

Source: Computed data

Palamau Khadi Cluster is referred by other clusters around 13 times so it gets rank 1 highly efficiency among other 12 clusters. Next Dimapur Khadi Cluster is referred around 9 times and it has got rank 2 and Amritsar Woolen Khadi Cluster has got rank 3 as it is referred around 6 times by other clusters. 5.4.6. Input and Output Slacks of Khadi Clusters in India

The Input and Output Slacks of Khadi Clusters is given in the table 5.

Table 5: Input and Output Slacks of Khadi Clusters in India

Excess Excess Shortage Shortage Shortage

No. DMU

Score

No. of Artisans benefited

Production in

Rs.lakhs

Annual Sales in Rs.lakhs

Enchanced Wages for Spinner

Enhanced Wages for

Weaver

S-(1) S-(2) S+(1) S+(2) S+(3)

1 DimapurKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

2 MukulmuaKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

3 SrtKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

4 SurendranagarKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

5 NawadaKhadi Cluster 0.80 0.00 0.00 0.00 0.68 0.00

6 PalamauKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

7 MaldaKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

8 BelurKhadi Cluster 0.55 0.00 0.00 0.00 0.00 0.15

9 HebballiKhadi Cluster 0.44 0.00 0.00 0.00 0.30 0.47


10 SulurKhadi Cluster 0.57 0.00 0.00 45.13 1.07 0.76

11 Coimbatore Khadi Cluster 0.84 0.00 69.44 0.00 0.00 0.07

12 KaraikudiKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

13 SircillaKhadi Cluster 0.95 99.86 0.00 0.00 0.02 0.00

14 SrikakulamKhadi Cluster 0.90 0.00 0.00 0.00 1.32 0.75

15 Thalappally Cotton Khadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

16 Thiruvananthapuram Khadi Cluster 0.79 0.00 17.64 0.00 0.00 0.11

17 PondicherryKhadi Cluster 0.61 0.00 48.90 93.18 0.35 0.75

18 Amritsar Woolen Khadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

19 Bandipora Woolen Khadi Cluster 0.48 0.00 0.00 0.00 0.00 0.16

20 BassiKhadi Cluster 0.67 0.00 0.00 0.00 0.11 0.04

21 Gudura Woolen Khadi Cluster 0.43 0.00 0.00 0.00 0.00 0.04

22 Kurukshetra Cotton Khadi Cluster 0.57 0.00 4.14 19.87 0.05 0.45

23 Gorakhpur Khadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

24 HaldwaniKhadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

25 Rae BareliKhadi Cluster 0.93 0.00 36.74 0.00 0.00 0.51

26 Tikarmafi Woolen Khadi Cluster 0.68 0.00 0.00 0.00 2.33 0.94

27 SitapurKhadi Cluster 0.76 0.00 87.51 12.87 0.10 0.65

28 SRT Khadi Cluster 1.00 0.00 0.00 0.00 0.00 0.00

Source: Computed Data 12 Clusters, are efficient by having θ = 1, S- = 0 and S+ = 0. The remaining 16 clustersneed improvement by

increase in annual Sales. The S > 0 obtained for other 16 clusters reveals the excess Production in Rs.lakhs (S-) in

the Clusters or shortage in annual sales (S+).

5.4.7 Variable Return to Scale of Khadi Clusters For a long time DEA models were based on Constant Returns to Scale (CRS) and it has been criticized as a

limiting factor for the application of DEA. Many economists viewed CRS assumption as over restrictive and

preferred alternative methodologies. Banker et al (1984) for the first time introduced the VRS in DEA models

through convexity constraints and thereafter remarkable change has led to make changes in CCR DEA models.

Variable Return to Scale of Clusters is given in table 6.


Table 6: Variable Return to Scale of Khadi Clusters in India

No. DMU Score RTS RTS of Projected DMU

1 DimapurKhadi Cluster 1.00 Constant

2 MukulmuaKhadi Cluster 1.00 Decreasing

3 SrtKhadi Cluster 1.00 Decreasing

4 SurendranagarKhadi Cluster 1.00 Decreasing

5 NawadaKhadi Cluster 0.80 Decreasing

6 PalamauKhadi Cluster 1.00 Constant

7 MaldaKhadi Cluster 1.00 Constant

8 BelurKhadi Cluster 0.55 Constant

9 HebballiKhadi Cluster 0.44 Constant

10 SulurKhadi Cluster 0.57 Constant

11 Coimbatore Khadi Cluster 0.84 Increasing

12 KaraikudiKhadi Cluster 1.00 Increasing

13 SircillaKhadi Cluster 0.95 Constant

14 SrikakulamKhadi Cluster 0.90 Constant

15 Thalappally Cotton Khadi Cluster 1.00 Decreasing

16 Thiruvananthapuram Khadi Cluster 0.79 Increasing

17 PondicherryKhadi Cluster 0.61 Constant

18 Amritsar Woolen Khadi Cluster 1.00 Constant

19 Bandipora Woolen Khadi Cluster 0.48 Constant

20 BassiKhadi Cluster 0.67 Constant

21 Gudura Woolen Khadi Cluster 0.43 Constant

22 Kurukshetra Cotton Khadi Cluster 0.57 Constant

23 Gorakhpur Khadi Cluster 1.00 Constant

24 HaldwaniKhadi Cluster 1.00 Constant

25 Rae BareliKhadi Cluster 0.93 Increasing

26 Tikarmafi Woolen Khadi Cluster 0.68 Constant

27 SitapurKhadi Cluster 0.76 Constant

28 SRT Khadi Cluster 1.00 Decreasing

Source: Computed Data


Source: Computed Data From table 6 and 7 it is proud to say that the RTS of 4 Clusters are increasing RTS. For other 18 Clusters it is

constant RTS and 6 Clusters are decreasing RTS needs improvement.

6. Findings and Conclusions The Funds given under the Scheme of Fund for Regeneration of traditional Industries (SFURTI) for development of

clusters in Khadi and Village industries is successful one and many Common Facility Centres (CFCs) were created

with the help of highly reputed technical agency. Interventions are carried out in Design product Development of

Khadi and Village Industries. Market Promotional Assistance was taken place. Capacity Building Measures like

exposure visit to other successful cluster and need based training within the clusters (skill development, Self Help

Credit & others) were also conducted. Many Self Help Group were formed, registered and tied up with Bank to get

credit.

There is also achievement in the Clusters for example The DimapurKhadi Cluster, MukulmuaKhadi

Cluster, Malda Khadi Cluster, Sircilla Khadi Cluster and Amritsar Woolen Khadi Cluster has got ISO:9001-2008.

The Thiruvananthapuram Khadi Cluster has exported some of the products. There is enhanced wages for Spinner,

Weaver and Artisans after Cluster Development Approach. The Social Security Coverage of Artisans is increased

by way of artisan Insurance scheme, Health Insurance Card, educational assistance, and many of them are

covered under jan Shree Bima Yojana (JSBY) & they are issued passbook. The achievement is also by Improved

Packaging and Branding of products.

To conclude, for inclusive growth and sustainable development, the inefficient Khadi clusters should increase their

Production or Sales. Moreover the Khadi Clusters should strengthen infrastructure interrelationships, technology

interrelationships, procurement interrelationships, production interrelationships and marketing interrelationships and

should make use of the benefits announced by Government of India under SFRUTI. The soft and hard intervention

on Cluster Development Programme of Government of India will help Khadi and Village Industries Clusters in India

to increase their productivity and efficiency.

Table 7: Overall RTS of Khadi Clusters

RTS Efficient Projected Total

No. of IRS 1 3 4

No. of CRS 6 12 18

No. of DRS 5 1 6

Total 12 16 28


References 1. Annual Report (2011-12) of Ministry of Micro, Small and Medium Enterprises, New Delhi.

2. Annual Report (2011-12) of KVIC, Mumbai.

3. Website of KVIC, Mumbai. www.kvic.org.

4. Website of SFRUTI, Government of India.

5. William W.Cooper, Lawrence M.Seiford and Kaoru Tone, Data Envelopment Analysis, Kluwer Academic

Publishers, Boston / Dordrecht / London.

Documents

The Technical Efficiency of Khadi and Village Industries Clusters … · 2019-01-08 · July - August, 2013 2 socio - economic voices SFURTI is Scheme of Fund for Regeneration of