Sunday, December 5, 2021

KVIC registers a record over Rs 95,000 cr turnover in FY21

The Khadi and Village Industries Commission (KVIC) recorded the highest ever turnover of over Rs 95,000 crore in the financial year 2021. KVIC said in a statement that the turnover stood at Rs 95,741.74 crore, an increase of 7.71 per cent over FY20 when the turnover was Rs 88,887 crore.

The numbers have increased despite the production halt for almost three months due to the outbreak of Covid-19. “During this period, the main focus of KVIC was to create sustainable employment for artisans and unemployed youth,” Vinai Kumar Saxena, Chairman of KVIC said. “Facing the economic crisis, a large number of youth took up self-employment and manufacturing activities under PMEGP (Prime Minister’s Employment Generation Programme), leading to increased production in the rural industry sector,” Vinai Saxena added.

Khadi and Village Industries sector registers a growth of 101%

In comparison to the year 2015-16, the Khadi and Village Industries sectors registered a growth of 101% in the total production in 2020-21, while the gross sales during the period registered a growth of 128.66%. As against the production of Rs 65,393.40 crore in FY20, the production in the Rural Industries sector increased to Rs 70,329.67 crore in 2020-21, while the sales of products of Village Industry stood at Rs 92,214.03 crore as compared to Rs 84,675.29 crore in FY20.

What is KVIC Scheme?

Khadi and Village Industries Commission (KVIC) plans, promotes, organizes and implements programs for the development of Khadi and other village industries in rural areas across the country. KVIC also helps in the creation of stock of raw material for supply to the producers. The commission focuses on the creation of common service facilities for processing raw materials, such as semi-finished goods. KVIC also helps in employment generation in the Khadi industry.

To promote Khadi and Village Industries, the Central Government runs several schemes and programs under the Khadi and Village Industries Commission (KVIC) which include:

Prime Minister’s Employment Generation Programme (PMEGP)

The Prime Minister’s Employment Generation Program (PMEGP) was launched to replace the Rural Employment Generation Program (REGP) scheme. Ministry of MSME launched PMEGP which is a credit-linked subsidy program. The main reason for starting this scheme is to generate employment in rural and urban areas all over the country.

Interest Subsidy Eligibility Certificate (ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) scheme is the major funding source for the Khadi programme. This scheme is applicable to all the registered institutes of KVIC. The scheme was launched to raise funds from banking institutions to bridge the gap between actual fund requirement and their availability from budgetary sources. Under this scheme, financing is provided at a concessional rate of interest of 4 per cent per annum as per the requirements for working capital purposes.

Market Promotion Development Assistance (MPDA)

This scheme has been launched to provide services like market promotion and development assistance to Khadi industries. The objective of this scheme is to ensure an increase in the income of the artisans.

Under the erstwhile MDA scheme, financial assistance was distributed among artisans (25 per cent), sales institutions (45 per cent) and producer institutions (30 per cent). This goes to 20 per cent for selling institutions and 40 per cent for both artisans and productive institutions.

Khadi Reform and Development Programme (KRDP)

The Khadi Reform and Development Program (KRDP) is designed to generate employment, increase the earnings of artisans and ensure the status of Khadi, keeping in view the current needs of the Khadi industry. The main focus of this scheme is on the repositioning of Khadi and linking to market requirements, providing selective subsidies and enhanced remuneration. state government would continue to extend help to the Samsung company in the future also.

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