Press Information Bureau
Government of India
Ministry of Micro,Small & Medium Enterprises
23-December-2010 18:37 IST
7th Meeting of National Khadi and Village Industries board held

            The seventh meeting of the National Khadi and Village Industries Board (NKVIB), an apex advisory body to guide the overall development of Khadi and Village Industries programmes across the country was held in New Delhi today under the Chairmanship of Shri Dinsha Patel, Minister of State (Independent Charge) for Micro Small and Medium Enterprises.


            Shri Dinsha Patel in his address highlighted the importance of Khadi and Village Industries sector in the national economy for providing large scale employment especially in rural areas at low per capita investment. He further said that the Government is committed to the development of KVIC in the country, which is evident from the fact that the allocation for KVIC in the current year has been increased from Rs. 919.20 crore to Rs. 1518.75 crore.  He also asked  KVIC to intensify its effort for timely utilization of fund. 


            Shri Patel said that the MDA Scheme is a pioneering attempt at reforming the Khadi Sector.  He added, the Government is making all efforts to increase the production as well as sales of KVI products with introduction of the modified scheme of MDA.  The Minister urged all to see that Khadi Institutions do not face any problem in the smooth implementation of the scheme and even take pro-active steps to help the institutions in case of any difficulties faced by them.  He said that the Government has considered sympathetically, the stock of Khadi that has remained unsold at the time of introduction of MDA by considering a one time incentive and also clearing all pending rebate claims of the institutions and is hopeful that the same will be approved by this year.


            The Minister also said that the Sector has tremendous potential in terms of creating jobs with minimum investment.  PMEGP is expected to provide a solid entrepreneurial base in the country. 


            Chairperson of KVIC, Sushree Kumud Joshi said that the basic objective of KVIC is to provide sustainable employment to spinners, weavers and artisans in the KVI sector.  She noted, how Khadi sector with its increased allocation has gained importance.  She also praised the MDA Scheme which encourages production of saleable Khadi goods and changes the point of subsidy to the stage of production instead of retail sales.


            During the meeting, suggestions were sought from members on ways to further improve the effectiveness, the efficiency, the productivity  and the delivery of the schemes in the KVI Sector.  Representatives of the North-East region suggested that special consideration should be given to North-East region in view of its locational disadvantage. Demand was also there for inclusion of Khadi activity under MGNREGA.


            Summing up the discussion Shri Uday Varma, Secretary, MSME said that the fund allocation is no longer a problem.  The Ministry has proposed Rs. 2866 crore in the coming Budget (2011-12) for it. 


            The Secretary emphasized the actual setting up of units under PMEGP should be monitored by KVIC and asked it to ensure complete transparency in the process of implementation of the PMEGP.  He also asked KVIC to complete the system of e-tracking and develop a data bank as regards to the contribution of this sector in GDP.


 Shi Varma said that an exclusive PMEGP expo is being planned in March 2011 for showcasing their products and a web portal to be evolved for PMEGP products and services.


The meeting was attended by senior officials of the Ministry of MSME, experts and senior functionaries from Khadi and Village Industries sector, State Governments, Banking, Marketing and public representatives.