Khadi production is expected to reach Rs. 1300 crore in the FY 2016-17, generating employment for 19.5 lakh people, Union MSME Minister Kalraj Mishra said addressing a post budget press conference in New Delhi.
Briefing about the roadmap of MSMEs for next financial year in the press conference exclusively on Budget 2016 allocation, Mishra said that a sum of Rs. 341 crore has been earmarked under Marketing Promotion Development Assistance (MPDA) scheme for Khadi and Village Industries Commission (KVIC).
Khadi and Village Industries Commission is a statutory body under the Ministry of Micro, Small and Medium Enterprises which seeks to plan, promote, facilitate, organise and assist in the establishment and development of Khadi and village industries in the rural areas.
KVIC’s functions also comprise building up of a reserve of raw materials and implements for supply to producers, creation of common service facilities for processing of raw materials as semi-finished goods and provisions of facilities for marketing of KVI products apart from organisation of training of artisans engaged in these industries and encouragement of co-operative efforts amongst them.
To promote the sale and marketing of Khadi and/or products of village industries or handicrafts, the KVIC forges linkages with established marketing agencies wherever feasible and necessary.
The Marketing Promotion Development Assistance (MPDA) scheme is for assisting MSMEs to organise/ participate in exhibition of their products and services in domestic and global markets.
The flexible, growth stimulating and artisan oriented MPDA scheme provides financial assistance 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.