Home / Knowledge / News / Textiles / Polyvastra in place of existing Rebate Scheme
Polyvastra in place of existing Rebate Scheme
29
Jan '10
The Cabinet Committee on Economic Affairs approved the introduction of a Market Development Assistance (MDA) scheme envisaging financial assistance @ 20% of production value on Khadi and Khadi products and polyvastra with effect from 1.4.2010 to be shared among spinners/weavers, producing institutions and selling institutions @ 25%, 30% and 45% respectively of total value of MDA in place of existing rebate scheme on Khadi and polyvastra at an estimated cost of Rs.345.05 crore, to be incurred between 2010-11 and 2011-12 as recommended by Expenditure Finance Committee (EFC).

The MDA Scheme has certain significant advantages over the earlier rebate scheme. Rebate was meant only for price subsidization with little emphasis on quality improvement, where MDA proposes to improve the quality of the products, marketing standards and techniques, besides trying to bring in a modern and competitive trend in its entire approach.

Though normal rebate was provided throughout the year, the sales usually picked up only during the period when the special rebate was extended. Thus sales were getting concentrated only during the period of special rebate. The MDA scheme proposes to distribute sales throughout the year.

The MDA Scheme provides specific earmarking and distribution of allocation / commitment for enhanced wages to artisans, which would help improve the standard of living of khadi artisans, majority of whom belong to the Below Poverty Line (BPL) category. Rebate does not have any specific component in this regard.

The MDA Scheme strives to bring in a competitive approach in the Khadi sector, since any subsidy or grant approach cannot last forever and the sector will survive only it takes up the challenge of sustaining itself through its internal resources.

Rebate on sales included the component on value addition on production which included dyeing, colouring, designing, stitching, packaging etc. which will not be covered under the MDA.

The Scheme is expected to result in sustainability and effective development of khadi, enhancement of artisans' welfare through their effective empowerment, sale of Khadi on its own strength and gradual reduction in reliance on government grant for growth in the Khadi sector.

It is estimated that a minimum of 200 beneficiaries per institution, in more than 1600 institutions across the country, will be benefited by the MDA Scheme.

KVIC will be responsible for implementation of the MDA Scheme. Implementation of the programme will be monitored by the Ministry of Micro, Small and Medium Enterprises.

Background:
The Government of India had constituted a ten member Expert Committee (EC) in December, 2004 to examine the structure, functioning and performance of Khadi and Village Industries Commission (KVIC) and recommend measures to revamp the KVIC and launch new programmes. One of the recommendations of this Expert Committee related to the existing scheme of rebate on the sale of khadi and polyvastra.


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search