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Shri Mahabir Prasad discusses activities of KVIC
Jun '08
The Government is formulating a new scheme on Marketing Development Assistance (MDA) for Khadi institutions.

A proposal has been mooted to provide assistance towards renovation, computerization, marketing infrastructure development, quality improvement of products, better packaging of Khadi products etc.

Through the proposed MDA scheme, the Government is planning to slowly phase out the existing rebate scheme of Khadi & Village Industries Commission (KVIC) and revitalize the Khadi sector to sustain on its own.

This was stated by the Minister for Micro, Small & Medium Enterprises, Shri Mahabir Prasad while addressing the Members of the Parliamentary Consultative Committee attached to his Ministry.

Various schemes and activities of the Khadi & Village Industries Commission were discussed at length in the meeting.

Shri Prasad further stated that the Ministry of Finance has been requested separately to provide the committed rebate on retail sales of Khadi this year.

Stating that KVIC has so far helped to generate an estimated 99.18 lakh (9.15 in Khadi and 90.03 in village industry sector) employment opportunities, Shri Prasad said an amount of Rs.1204 crore has been earmarked for Agro & Rural Industry Sector during 2008-09.

Allaying fears of the Members that KVIC units were prone to sickness, Shri Prasad informed that the Ministry was processing a pilot scheme for “Strengthening of infrastructure of existing weak Khadi institutions and providing assistance for marketing infrastructure” with a financial outlay of Rs.27.50 crore, to assist 200 weak Khadi institutions, suffering from losses due to various reasons and to help 30 marketing outlets for their renovation and creating other marketing infrastructure.

Secretary, Ministry of Micro, Small & Medium Enterprises, Shri Dinesh Rai and CEO, KVIC also spoke on this occasion.

Press Information Bureau Government of India

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