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Last updated: 26 Sep, 2014  

Dinsha Patel THMB Govt raises budget for KVIC by 33 percent

Dinsha Patel at AGM KVIC 2010
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Saurabh Gupta | 26 Feb, 2010
The budget for Khadi and Village Industries Commission (KVIC) for the year 2010-11 has been increased by 33 percent, said Minister of State (Independent Charge) for MSME Dinsha Patel in New Delhi on Thursday.

The minister stated this on the sidelines of the 6th Meeting of National Khadi and Village Industries Board in the capital on Thursday.

“Rs. 1500 crore has been approved for KVIC in the next year budget i.e. 2010-11,” Patel said.

Patil stated that budgetary support would be no constraint for the development of this important sector and the government is fully committed to substantially enhancing the budget outlays in 2010-11 compared to Rs.1129 crore that was approved for KVIC in 2009-10.

While highlighting the importance of the Khadi and Village Industries in the national economy, he said the sector provides large scale employment especially in rural areas at low per capita investment.

He exhorted the Khadi and Village Industries institutions, representatives of state governments and banks to strengthen the efforts of the government and KVIC in successfully and speedily implementing various schemes and initiatives that have been approved recently.

Patel also urged the Khadi sector and the institutions to ensure a smooth transition to the new scheme for Market Development Assistance (MDA) based on production of Khadi that would replace the earlier system of Rebate on Sale of Khadi with effect from 01.04.2010 by effectively planning their production and marketing activities in right earnest, from now itself.

Cabinet Committee on Economic Affairs (CCEA) has recently approved the MDA on production scheme. MDA scheme based on production will be implemented from April 1.

"The benefit of MDA should also be transparently passed on to Spinners and Weavers as provided in the scheme," he added.
 
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Helpful website
Georghal | Sat Sep 24 18:04:43 2011
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RE
Josie | Tue Nov 23 14:54:48 2010
It is encouraging to note that union Minister Patel realizes the role that Khadi and Village Industries play in the national grid in terms of economic growth and employment opportunities. That budgetary allocation should as well go much higher than that in future.- Jordan


mda instad of rebate
s.b.ashtekar | Tue Oct 5 14:12:00 2010
i am of the opinion that mda is agood policy we have to be alart and start production work immidiately as all ready 6 months lapsed, as we are facing the problem, that release of roving, i personly request the commission to look in to fast recoreds of theinstitutions which work was appriciating,and release the roving regularly along with mda claim amount in time and ask for performance as i am working since 1981, now i am a secretary of a respected institution in karnataka,and selected for adb scheme,so once again i request to release roving as and when it required by the sanstha,this is personal view, it may please be considered,bdkgs,belgaum.0831 2489263


MDA instead of Rebate Policy
Dilip Mukherjee | Fri Feb 26 10:50:31 2010
I am in Khadi Sector since 1982.KVIC launch pilot project on MDA in the year 2008-07. Any result has come out.The institution who accepted till they did not get the MDA claim amount.I hope this is nor fair policy and Government shall face face so many problems and for which introduced MDA artisans shall not get any benefit at all.The officers are misguided the Minster.In the year 2010-11 the sales of Khadi shall be decries 50%. Because customers are buying Khadi on rebate since indigence

  Re: MDA instead of Rebate Policy
s s narayanan | Sat Feb 27 05:54:53 2010
MDA is better than rebate system. It preallocates what is due to the artisans. it is available at pre production stage erasing working capital problems. Better to systematically study by introducing it in selected efficient institutions, iron out the operational glitches over the next six months at least and introduce it by 1.1.2011. S S NARAYANAN, Member NKVI Board, MSME Ministry

  Re: MDA instead of Rebate Policy
ddc | Fri Apr 30 12:18:27 2010
i agree 100% ,its the scheme of destroying khadi.and also the corrupt government does not pay the rebate also.the ministers are filling their pockets only.in india most corrupt officers are in khadi they ask money in each steps.

  Re: Re: MDA instead of Rebate Policy
qwe | Fri Jun 18 16:06:10 2010
I agree, india most corrupt officers are in khadi and are asking money at each and every step ... either you give them or they will use all there resources to harm you. Actual sales of khadi are decreasing and some of the prime properties of different sanstha's are getting sold. Sangrur (Punjab), Dera Bassi , Nagpur many such corrupt practices are being followed by corrupt governement officials


 
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