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KVIC to speedily implement schemes for KVI sector, Mr Patel
Feb '10
The sixth meeting of the National Khadi and Village Industries Board (NKVIB), an apex advisory body to guide the overall development of Khadi and Village Industries programmes across the country was held in New Delhi on February 25, 2010 under the Chairmanship of Shri Dinsha Patel, Minister of State(Independent Charge) for Micro Small and Medium Enterprises .

Shri Dinsha Patel in his address highlighted the importance of the Khadi and Village Industries sector in the national economy for providing large scale employment especially in rural areas at low per capita investment. He exhorted the Khadi and Village Industries institutions, representatives of State Governments and Banks to strengthen the efforts of the Government and KVIC in successfully and speedily implementing various schemes and initiatives that have been approved recently. The Minister stated that budgetary support would be no constraint for the development of this important sector and Government is fully committed to substantially enhancing the budget outlays in 2010-11 compared to Rs.1129 crore that was approved for KVIC in 2009-10.

Shri Patel said that the Khadi Reform and Development programme approved in December 2009 is a pioneering attempt at reforming the Khadi sector in particular with the infusion of Rs.716 crore in the next three years through financial assistance from Asian Development Bank. He further added that this programme should be implemented in the right spirit and the selection of institutions should be done with great care so that the financial assistance delivered through the programme gets converted without delay into the expected outcomes and benefits.

Similarly, Shri Patel exhorted the Khadi sector and the institutions to ensure a smooth transition to the new scheme for Market Development Assistance based on production of Khadi that would replace the earlier system of Rebate on Sale of Khadi with effect from 01.04.2010 by effectively planning their production and marketing activities, so that the benefits of MDA are passed on to spinners and weavers.

The Minister also advised KVIC to speedily implement various schemes for the benefit of KVI sector especially for enhancing productivity and efficiency, creation of worksheds, revival of weak institutions and renovation of sales outlets that have been sanctioned in the last one and half years.

Shri Patel also called upon the State Governments and the banking industry to vigorously support the credit linked subsidy programmes namely, Prime Minister's Employment Generation Programme (PMEGP) which has generated tremendous demand for setting up of micro enterprises in both urban and rural areas across the country by first generation entrepreneurs.

Chairperson of KVIC, Smt. Kumud Joshi said that the basic objective of KVIC is to provide sustainable employment,reasonable wages and minimum security to the spinners, weavers and artisans in the KVI sector.

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