Based on the review of performance of pilot schemes implemented in selected khadi institutions and departmental sales outlets of KVIC and on the basis of relative advantages and disadvantages of each pilot scheme, it was recommended by KVIC that “MDA on production” may be introduced to replace the rebate scheme.
Under the rebate scheme discount is being extended on sale of khadi and polyvastra under two components viz. Normal rebate and special rebate. Normal rebate is extended at a flat rate of 10% of sale value throughout the year. Special rebate is extended to coincide with local festivals at a rate of 10% for 108 days in a year in addition to normal rebate.
The MDA scheme, as an alternative to the existing rebate scheme for Khadi and Polyvastra, aims at providing financial assistance to khadi institutions @ 20% of production value (cotton Khadi, Silk Khadi, Woolen Khadi and Polyvastra) achieved by the institution.