ADB sanctions US $150 mn for promoting khadi

July 09, 2010 - India

Minister for Small and Medium Enterprises, Dinsha Patel, while speaking at an occasion in Mumbai informed that, the Asian Development Bank (ADB) will be providing US $150 million for promotion of khadi and other products of village industries.

The funds would be utilized for up-gradation and expansion of the khadi sector, which serves as a source of livelihood for about 10 million people, while generating revenue of Rs 241.16 billion.

The money would be used for upgrading the technology employed for producing khadi and for other purposes like imparting training for skill development and promotion of ‘khadi’ mark, to earn khadi, a reputation of hand-rolled and knitted fabric. The main aim is on improving quality and promotion of khadi and other village industry items.

It is planned to upgrade around 2,000 khadi units throughout the country and this figure does include 47 units of Maharashtra.

Early this week, the Minister laid the foundation stone for Khadi Plaza, which is to take shape at the Khadi Gramodyog Bhavan in Vile Parle, Mumbai.

It has been decided to incorporate an exhibition hall with a capacity of 50 stalls and an auditorium on the first-floor of this air-conditioned plaza, which spreads across an area of around 10,000 square feet.

Stalls will be segregated based on the States and will be provided to the khadi and other village industries on rotational basis for a fixed term, so as to ensure that organizations from distantly remote areas like the North-Eastern region, Jammu and Kashmir as also from other regions across the country stand a chance to visit, exhibit and put up for sale provincial khadi and rural industries merchandise in Mumbai.

This Khadi Plaza apart from making available to the village artisans a platform where they can market their products, would also offer sustainable employment to the people.