Khadi Gramodyog Vikas Yojana | 20 Feb 2019

The Cabinet Committee on Economic Affairs has approved the following:

8 different schemes of Khadi & Village Industries are now merged under two heads i.e. 'Khadi Vikas Yojana' and 'Gramodyog Vikas Yojana':
- Khadi Vikas Yojana includes Market Promotion & Development Assistance (MPDA), Interest Subsidy Eligibility Certificate (ISEC), Workshed, Strengthening Weak Infra, Aam Aadmi Bima Yojana, Khadi Grant.
- Gramodyog Vikas Yojanaa [Village Industries Grant].
To bring in a new component of 'Rozgar Yukt Gaon' to introduce enterprise-based operation in the Khadi sector and to create employment opportunities.

MPDA

The Market Promotion and Development Assistance Scheme (MPDA) was launched as a unified scheme by merging different schemes implemented by the Khadi sector including publicity, marketing, market promotion, and marketing development assistance.
Grant/subsidy was also provided for construction of Khadi plazas. The overall objective of the scheme is to ensure increased earnings for artisans.

Interest Subsidy Eligibility Certificate

Interest Subsidy Eligibility Certificate Scheme was launched in May 1977 to help Khadi and Polyvastra producing institutions in mobilizing the capital funds from banking institutions.
Under the Scheme, implementing agencies can avail of bank loan as per the ISEC issued by the KVIC on payment of only 4 percent of interest and difference between the actual interest charged by the bank and 4 percent is borne by KVIC as interest subsidy.

Rozgar Yukta Gaon (RYG) aims at introducing an 'Enterprise-led Business Model' in place of 'Subsidy-led model' through a partnership among 3 stakeholders- Khadi Reform and Development Programme (KRDP)-assisted Khadi Institution, Artisans and Business Partner.
It will be rolled out in 50 Villages by providing 10,000 Charkhas, 2000 looms & 100 warping units to Khadi artisans, and would create direct employment for 250 Artisans per village.