MSME interest rate issues in ministry's FTP recommendations: Muniyappa

The Minister of State (Independent Charge) for Micro, Small & Medium Enterprises, K.H. Muniyappa visits after inaugurating the Khadi Gramodyog Bhavan, in New Delhi on February 26, 2014.

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Vaneeta Punchvedi | 27 Feb, 2014
The Ministry of Micro, Small & Medium Enterprises has given a set of important suggestions for the Foreign Trade Policy (FTP) 2014-19, to address the high interest rate problems faced by the sector, said MSME minister K.H Muniyappa on Wednesday.

"MSME sector is suffering from duty problems, tax relaxation and interest rate problems, so we had recommended on these problems for FTP," Muniyappa told SME Times.

FTP 2014-19 is likely to be announced in April.

The minister said this while inaugurating the refurbished Khadi Gramudyog Bhavan in New Delhi. Chairman of Khadi & Village Industries Commission Devendra Kumar R Desai and MSME secretary Madhav Lal were also present at the event.

Speaking at the event, the minister said that the MSME ministry is implementing a comprehensive reform package, Khadi Reform and Development Programme (KRDP), for the khadi sector.

KRDP includes up gradation and capacity building of 300 khadi institutions and improved marketing with financial assistance of Rs. 950 crore. Steps are also being taken to distribute 1 lakh modern Chrakhas for better productivity to the artisans and also new handlooms to various Khadi sansthans under the KRDP.

Interacting with the media, he added, " UPA govt. had started its new scheme for the khadi industry, we had provided Rs.750 corers from the Asian development bank for the free 'Charkha' in villages, which will increase the employment. The government will pay 1 lakh 'Charkhas' to the workers which will lead to more productions, more workers and more wages to the the workers."

Commenting on this initiative, Madhav Lal said, "Although we are giving free 'Charkha' to the Khadi Industry, we are also increasing thier wages from Rs.30 to Rs.125. We are also trying to increase the yearly turnover of Khadi Gramodyog from 32 corers to 100 corers."

The MSME ministry recently notified Khadi Mark Regulations 2013, which empowers KVIC to provide Khadi Mark by laying down standards of assurance and by authorizing the use of Khadi Mark.

A suitable Khadi Mark Logo has been developed by KVIC, which symbolizes Charkha signifying hand spinning which is the essence of not only Khadi cloth but also Gandhian values and environment friendly nature of the product.