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Need to speed up implementation of schemes for khadi sector
Aug '10
The first meeting of Core Group on Khadi and Village Industries sector under the Chairmanship of Shri Dinsha Patel, Minister of State (Independent Charge) for Micro Small and Medium Enterprises was held recently. The Core Group provides an effective forum of consultation for policy formulation, improving the efficiency of delivery mechanism as well as effective monitoring of Government schemes in this sector.

Addressing the group, the Minister emphasized on speedier implementation of schemes. He desired that khadi and village industries activities should be expanded and special features of the schemes should be appropriately highlighted by KVIC for their effective implementation. The Minister also said that KVIC should compile its best practices for the benefit of others as well as adopt the best practices followed by others particularly, the State Khadi and Village Industries Boards.

Speaking on the occasion, Secretary (MSME), Shri Dinesh Rai,, also emphasized the need to take urgent effective steps on the part of KVIC towards speeding up implementation of Khadi Reforms and Development Programme (KRDP) through further simplification of procedures, timely utilization of funds and adequate publicity about newly launched schemes of MDA on khadi production towards attaining sustainability in the sector.

During the discussion, it was highlighted that the Government has introduced the scheme of Market Development Assistance on production of khadi w.e.f. 1 April 2010 in place of rebate scheme. It was clarified that for the first time a definite share of 25% of the incentive on production was earmarked for spinners and weavers who have traditionally been involved in producing khadi, and that greater flexibility was given to khadi institutions to utilize a major part of the assistance in modernizing equipments, training and capacity building of artisans as well as modernization of sales outlets, improvement in designs, publicity, providing discount to customers, etc. It was informed that funds to the tune of Rs 39.75 crore has been released to KVIC recently as an advance for settlement of claims.

Chairman, Jharkhand KVI Board explained the initiatives taken by the Board for providing insurance coverage to khadi artisans, joint promotional activities, better credit linkage and the capacity building of artisans. The Jharkhand KVI board has recently signed MoUs with Department of Post, LIC and NABARD.

About 10 representatives of KVI sector, 2 KVIC members besides senior officials of the Ministry and were present.

The participants appreciated the Ministry's unprecedented initiative of associating khadi institutions and other stakeholders in Ministry's actions and also arranging plan budget allocation of Rs 1,518 crore to KVIC for the current year, which is 65% higher than Revised Allocation for KVIC during 2009-10.

Press Information Bureau

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