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Govt offers incentives to promote khadi

Updated: May 02, 2013 06:59:13pm
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New Delhi, May 2, (KNN) In a bid to tap the full potential of khadi, the government is implementing many schemes including establishment of design centres, preparing a quality assurance manual and organising exhibitions.

“Khadi and Village Industries Commission (KVIC) together with Mahatma Gandhi Institute for Rural Industrialization (MGIRI) have taken a number of steps in research and development for promotion of khadi which include establishment of design centre for khadi and textile garments, quality assurance manual for khadi, low cost hank dyeing machine, improved dyeing process for khadi fabric, development and popularization of e-charkha,” said Minister for Micro, Small and Medium Enterprises, KH Muniyappa in Lok Sabha today.

KVIC has organised 766 exhibitions during the last three years at district, state and national levels to promote khadi.  It has also given considerable focus to quality participation in international exhibitions so as to tap new and emerging markets.

Also, Asian Development Bank is providing USD 150 million for capacity building of 300 Khadi institutions under the Khadi Reform and Development Programme (KRDP).

Further, under the Market Development Assistance (MDA) Scheme the government is providing financial assistance for the welfare of khadi institutions and artisans.

“Under MDA, financial assistance is provided to institutions at 20 per cent of the value of production of khadi and polyvastra, to be shared among artisans, producing institutions and selling institutions in the ratio 25:30:45,” he said.

MDA also provides institutions the flexibility to use assistance for improving outlets, products and production processes, besides giving incentive to customers.

Apart from this KVIC is also providing assistance for replacement of obsolete equipment, setting up of common facilities centres, product development and market promotion for cluster development.  (KNN)

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