The Cabinet Committee on Economic Affairs has put forth the merging of 8 different Khadi & Village Industries schemes under the banners of ‘Khadi Vikas Yojana’ and ‘Gramodyog Vikas Yojana’. This brings about an innovation in the rural sector with enterprise-based operation, intending to generate employment opportunities.
Overview of Merged Schemes
The proposals include the amalgamation of ‘Market Promotion & Development Assistance (MPDA)’, ‘Interest Subsidy Eligibility Certificate (ISEC)’, ‘Workshed’, ‘Strengthening weak Infra’, ‘Aam Aadmi Bima Yojana’, and ‘Khadi Grant’ under the umbrella of ‘Khadi Vikas Yojana’. The ‘Village Industries Grant’ is now introduced as ‘Gramodyog Vikas Yojana’. A new component, ‘Rozgar Yukt Gaon’, is launched for introducing enterprise-based operations, significantly contributing to the generation of employment opportunities.
Market Promotion & Development Assistance Scheme(MPDA)
The MPDA scheme was introduced as a unified scheme by converging various initiatives undertaken in the Khadi sector, including publicity, marketing, market promotion, and marketing development assistance. Subsidies/Grant provisions for constructing Khadi plazas were added to the scheme. The primary objective of this scheme is to amplify earnings for artisans.
Interest Subsidy Eligibility Certificate Scheme
Launched in May 1977, the Interest Subsidy Eligibility Certificate Scheme aims to assist Khadi and Polyvastra producing institutions in raising capital funds from banking institutions. Implementing agencies can now avail bank loans based on the ISEC issued by the KVIC, paying only 4% interest. The difference between the actual bank interest and 4% is absorbed by KVIC as an interest subsidy.
| Scheme | Function |
|---|---|
| MPDA | Merging different initiatives in Khadi sector for artisans’ earnings enhancement |
| ISEC | Assisting Khadi and Polyvastra producing institutions in raising capital funds |
Rozgar Yukt Gaon Scheme
The Rozgar Yukta Gaon (RYG) aims to replace the ‘Subsidy-led model’ with an innovative ‘Enterprise-led Business Model’. It forms a partnership among 3 stakeholders – Khadi Reform and Development Programme (KRDP)-assisted Khadi Institution, Artisans, and Business Partner. It will be implemented in 50 villages, providing 10,000 Charkhas, 2000 looms & 100 warping units to Khadi artisans and creating direct employment for 250 artisans per village.
These schemes aim not only to empower artisans but also to boost income and employment generation in rural areas, paving the way for substantial economic growth.
