KVIC implements many schemes for promotion of khadi

01 Aug '14

4 min read

For the holistic development and promotion of khadi and village industries in the country, the Government of India has established a statutory body named the Khadi and Village Industries Commission. KVIC implements a number of schemes for development, promotion & growth of khadi which include.

(i) Market Development Assistance (MDA) under which assistance is provided @ 20% of value of production khadi and polyvastra to be shared among artisans, producing institutions and selling institutions in the ratio 25:30:45.

(ii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) under which assistance for replacement of obsolete equipments, setting up common facilities centres, product development, market promotion and other support are provided in clusters.

(iii) Scheme for Enhancing Productivity & Competitiveness of Khadi Industry and Artisans under which assistance for replacement of charka, product development, design intervention and packaging etc. is provided.

(iv) Interest Subsidy Eligibility Certification (ISEC) scheme for providing bank loans for khadi and polyvastra at subsidized rates of interest.

(v) Strengthening Infrastructure of existing Weak Khadi Institutions and Assistance for Marketing Infrastructure’ envisaging renovation of khadi sales outlets and providing assistance for strengthening infrastructure of existing weak selected institutions

KVIC with assistance of US$ 150 million from Asian Development Bank (ADB) also implements a comprehensive reform package for the khadi sector namely Khadi Reform and Development Programme (KRDP), which includes capacity building of 300 khadi institutions and incentivizing production. ‘Khadi Mark’ has also been introduced to guarantee the genuineness and purity of khadi sold in the market. Formation of new khadi institutions are also promoted by KVIC.

The Government, in order to boost export of KVI products, has given deemed ‘Export Promotion Council’ status to KVIC under which KVIC has already enlisted more than 900 exporters. There is a provision of providing incentive in the form of 5% FOB value of direct export of KVI products. Besides, KVIC has also been focusing on quality participation in International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for KVI products.

Rural enterprises play a pivotal role in the overall industrial development of the country and the development of rural industries is primarily the responsibility of State Governments.

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