SME Times News Bureau | 19 Feb, 2019
The Cabinet Committee on Economic Affairs on
Tuesday approved continuation of Khadi Gramodyog Vikas Yojana from 2017-18 to
2019-20.
The Cabinet decided to continue the existing
schemes of MPDA, Khadi Grant, ISEC and Village Industry Grant, all subsumed
under 'Khadi and Gramodyog Vikas Yojana' at the total cost of Rs. 2800 crore for
the period 2017-18 to 2019-20, said an official statement.
It also approved the decision to bring in a new
component of 'Rozciar Yukt Gaon' to introduce enterprise-based operation in the
Khadi sector and to create employment opportunities for thousands of new
artisans in the current and next financial year (2018-19 and 2019-20).
Rozgar Yukta Gaon (RYG) aims at introducing an
'Enterprise-led Business Model' in place of 'Subsidy-led model' through
partnership among 3 stakeholders- KRDP-assisted Khadi Institution, Artisans and
Business Partner.
It will be rolled out in 50 Villages by providing
10,000 Charkhas, 2000 looms & 100 warping units to Khadi artisans, and
would create direct employment for 250 Artisans per village.
The total Capital Investment per village shall be
Rs.72 Lakh as subsidy, and Rs.1.64 Crore in terms of Working Capital from the
Business Partner.
Under the Village Industry verticals, special focus
shall be on Agro-based and food processing (Honey, Palmgur etc.), Handmade
Paper and Leather, Pottery and Wellness and Cosmetics sectors through Product
Innovation, Design Development & Product Diversification.
For this initiative, advanced skill development
programmes shall be conducted through existing Centres of Excellence such as
CGCRI, CFTRI, IIFPT, CBRTI, KNHPI, IPRITI etc.
Another intervention is to set up 4 Design Houses
across the country to capture regional variations, to provide access to Khadi
Institutions, to evolve modern designs, ethnic wear etc. with an investment of
Rs.5 crore each.
The other key component is to make the 'Production
Assistance' competitive and incentive based.
The incentive structure focuses on improving
productivity, turnover and quality assurances, and would be extended on the
basis of an objective scorecard.
While the Khadi Institutions would automatically be
given the financial assistance of 30%, in order to become eligible for the
additional incentive of 30%, these institutions must strive for efficiency,
optimal utilization of resources, reduction of waste, effective managerial
practices etc.
As a part of rationalization exercise, 8 different
schemes of Khadi & Village Industries are now merged under 2 umbrella heads
i.e. 'Khadi Vikas Yojana' and 'Gramodyog Vikas Yojana'.