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CII signs MoU with Khadi and Village Industry Commission
Aug '08
Speaking at the Memorandum of Understanding (MoU) Ceremony between Khadi and Village Industries Commission & Ministry of Panchayati Raj and Khadi and Village Industries Commission (KVIC) & Confederation of Indian Industry (CII), Shri Mani Shankar Aiyar, Minister for Panchayati Raj, said that the need of the day is to connect the vision of Mahatma Gandhi- Father of our nation to that of Late Shri Rajiv Gandhi. This to be achieved by connecting rural business and rural India with modern fast developing Indian Industry and economy.

Shri Mahabhir Prasad, Hon'ble Minister for MSME reiterated and affirmed the cooperation of MSME partnership with Ministry of Panchayati Raj & CII to achieve the joint vision of strengthening of Rural Business Hubs and the need for perceiving the world as a global village. Commenting further, Mr Sunil Kant Munjal, Past President, CII said that India is shining but at the same time it is important that efforts are made for rural India also to be part of this growth process.

Mr Chandrajit Banerjee, Director General, CII, added that it was a proud day for CII. Promoting KVIC's initiative promoted through the Ministry of Panchayati Raj takes top priority on the agenda of CII. He also stated that CII is eagerly looking forward to the relationship with KVIC and also pledged support to this institutional partnership.

CII in partnership with the Ministry of Panchayati Raj is promoting the concept of Rural Business Hubs (RBH), first-of-its-kind initiative, based on Public-Private-Panchayat Partnership to facilitate direct business linkages between industry and the rural community.

RBH aims to create a win-win scenario, whereby farmers, artisans & rural enterprises gain in terms of higher incomes through increased yields, improved quality, better marketing linkages, transfer of know-how and technology, reduced transaction cost, etc. Industry derives benefits in terms of savings in procurement cost and procurement of standardized and quality produce, acceptable in the national and international market.

In recognition of the convergence of objectives between KVIC and CII, both the parties decided to collaborate, where KVIC will be an “Institutional Partner” to the RBH initiative.

The major objectives of KVIC and CII will through this collaboration would be sharing and exchanging information of mutual interest for benefit of khadi & village industries institutions and artisans; supporting, facilitating and promoting rural business hubs for khadi & village industries activities; developing prototypes and facilitating market linkages; facilitating and supporting domestic and international market development through brand promotion and brand building and supporting capacity building for RBH – training & skill development.

CII & KVIC will share the responsibility for the overall project management of any Program Activities undertaken under the provision of this MOU. These Program Activities will encompass numerous tasks including sharing of database pertaining to KVIC clusters, producing institutions and units; preparing focused publicity material; organizing awareness programmes; facilitating Market Linkages between industry members and KVIC clusters through buyer – seller & B2B meets, cluster visits, etc.; facilitating market development of domestic and export market through brand building and brand promotion amongst others.

The agreement duration is 3 years, commencing from 04 August 2008 and valid till 03 August 2011, which can be further extended or contracted by the parties with their mutual consent.

Confederation of Indian Industry

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