Textile & Fashion

Approval of Contribution of Khadi Gramoudyog Vikas Yojana by the Cabinet


According to an official statement, the Union Cabinet has given its seal of approval on the continuation of Khadi Gramoudyog Vikas Yojana until 2019-20. The existing schemes of MPDA, Khadi Grant, ISEC and village Industry Grant has been approved by the Cabinet Committee on Economic Affairs. All falling under ‘Khadi and Gramoudyog Vikas Yojana’ at the total cost of Rs. 2800 crore for the time period of 2017-18 to 2019-20.

It is believed that this approval will bring in a new component of ‘Rozciar Yukt Gaon’ to introduce enterprise- based operation in the Khadi sector and to create a window of employment for thousands of new artisans in the present and subsequent fiscal year. The Rozgar Yukta Gaon aims at replacing the ‘Subsidy-led Model’ with an ‘Enterprise-led Business Model’ among three stakeholders- KRDP, Artisans and Business Partner.

According to a release, it said that by providing 10000 Charkhas, 2000 looms and 100 warping units to Khadi artisans would create a source of direct employment in 50 villages. It is estimated that a total capital investment per village is Rs. 72 lakhs as subsidy and Rs. 1.64 crore with respect to working capital from the business partner.

Special focus would be on agro-based and food processing, handmade paper and leather, pottery and wellness and cosmetic sectors under the village industry verticals with product innovation, product diversification and design development. Eight different schemes of Khadi and Village Industries as a part of rationalization exercise has now been merged under two major heads.

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