The Khadi Gramodyog Vikas Yojana combines two independent initiatives: the Khadi Vikas Yojana, which has played an important role in developing India’s Khadi industry, and the Gramodyog Vikas Yojana, which focuses on assisting and improving small rural enterprises.
Features Of Khadi Gramodyog Vikas Yojana
In February 2019, the Cabinet Committee on Economic Affairs approved the Khadi Gramodyog Vikas Yojana.
Both programmes have been managed by the Khadi and Village Industries Commission (KVIC) over the years.
The Khadi Vikas Yojana, which previously included the Market Promotion and Development Assistance (MPDA), Interest Subsidy Eligibility Certificate (ISEC), Aam Admi Bima Yojana, and Khadi Grant, aimed to strengthen the Khadi Industry’s inadequate infrastructure.
The Gramodyog Vikas Yojana, on the other hand, was aimed at subsidising village industries through the KVIC.
The Khadi Gramodyog Vikas Yojana, which adds a new component called Rozgar Yukt Gaon to the existing mix, intends to foster entrepreneurship in the Khadi industry, provide new job possibilities in rural regions, and eventually empower women.
Objectives Of Khadi Gramodyog Vikas Yojana
- Boosting rural employment and creating more job opportunities
- Improving the state of the Khadi industry and making it more robust
- Empowering rural communities and raising their self-esteem by providing better opportunities
- Positioning Khadi clothing as a fashionable global trend
Significance of Khadi Gramodyog Vikas Yojana
- The worldwide Khadi market will witness progress.
- Job prospects in rural parts of India will receive a boost.
- The quality of life for individuals living in impoverished rural areas of India will be enhanced.
Beneficiaries Of Khadi Gramodyog Vikas Yojana
- People residing in rural regions with restricted or no skill set.
- Craftspeople engaged in Khadi production.
- Businesspersons who intend to invest in the Khadi sector.
- Different industries falling under the MSME category that will gain from the program.
Implementation of Khadi Gramodyog Vikas Yojana
- The Khadi Gramodyog Vikas Yojana comprises two parts, namely the Khadi Vikas Yojana and Gramodyog Vikas Yojana, which have been amalgamated.
- The scheme’s objective is to overhaul the current business model adopted by rural industries.
- The aim is to foster self-sufficiency among village industries and decrease their dependence on subsidies.
- Assistance will be extended to small-scale and cottage industries like food, leather, pottery, and handwoven textiles to improve their production and marketing capabilities.
- The government plans to establish Design Houses throughout the country to increase the accessibility of Khadi products to the general public.
- The administration intends to boost financial aid to 50-60% to encourage the establishment of well-structured business verticals and better resource management.
Major Schemes Of Khadi Gramodyog Vikas Yojana
Rozgar Yukt Gaon
The Rozgar Yukt Gaon is a component of the Khadi Gramodyog Vikas Yojana, which aims to empower Khadi artisans and provide them with the necessary resources to produce and sell their products. As a part of this scheme, 50 villages will be provided with the tools and equipment required for the production of Khadi, including Charkha, loom, and warping units.
Market Promotion and Development Assistance (MPDA)
The Market Promotion and Development Assistance (MPDA) scheme is overseen by the Ministry of MSME (Micro Small and Medium Enterprises) and is aimed at creating new opportunities for promoting the Khadi Industry across India. Under this scheme, a grant of 977 crores was sanctioned to support the production, selling, and marketing of Khadi and small enterprises in rural areas.
Interest Subsidy Eligibility Certificate (ISEC)
The Interest Subsidy Eligibility Certificate (ISEC) scheme was launched in May 1977 to assist Khadi and Polyvastra production enterprises in obtaining capital from banks. Under this scheme, rural enterprises can receive bank loans with an interest rate of only 4 percent, with the remaining interest being subsidized by the KVIC (Khadi and Village Industries Commission).
Boosting Agarbatti Udyog (2020)
In 2020, the Ministry of MSME launched a new programme under the Gramodyog Vikas Yojana aimed at boosting Agarbatti manufacturing in rural areas. KVIC (Khadi and Village Industries Commission) will train Agarbatti artisans to help build the enterprise-led business model in the rural sector. Raw material, tools and equipment required to produce Agarbatti will also be provided by KVIC.
The objective of this move by the ministry is to revive the Agarbatti Udyog and provide employment opportunities in rural enterprises.
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