Steps taken by Ministry of MSME To make Khadi Gramodyog Commission Result-Oriented

(Based on information provided by the Minister of State for MSME Shri Giriraj Singh in a written reply to a question in Rajya Sabha on 7 December 2016, Wednesday).

Ministry of MSME, through Khadi and Village Industries Commission (KVIC), has taken various steps to increase organizational capacity to meet the various requirements towards implementation of the schemes to extend requisite benefits to the Khadi and Village Industries (KVI) Institutions and Units. The steps taken encompass administrative as well as operational aspects of KVIC.  The salient among those are given below :

1.      In order to access or communicate digitally among the KVIC offices, a facility has been created in the official website of KVIC, which has replaced the postal communication by digital communication rendering the inter office communication instantaneous and retrievable through a digital platform.  

2.                  To reduce the paperwork and save time usually caused in movement of files, KVIC has started comprehensive plan to introduce e-office system. The training of officials have been completed and the piloting of the system has been initiated in Central Office, KVIC, Mumbai.

3.                  KVIC have also issued Request for Proposal (RfP) seeking bids for implementation of e-governance in KVIC.  The bids received from the parties are under finalization.  The implementation of e-governance system will make KVIC to attend all financial/ accounting/ budgeting/ administering the schemes of Government on a digital space.  

4.                  To bring transparency and expedite disbursement of Margin Money subsidy under Prime Minister’s Employment Generation Programme (PMEGP) scheme, KVIC has introduced online submission of application by the prospective beneficiaries and the payment of Margin Money subsidy is directly made into the beneficiary account through Direct Benefit Transfer (DBT).  

5.                  For supporting implementation of Khadi programme, Government of India extends Market Development Assistance (MDA) to Khadi Institutions (KIs). Under the modified Market Promotion & Development Assistance (MPDA) scheme, financial assistance is provided to institutions @ 30% of Prime Cost of khadi and polyvastra, to be distributed amongst Artisans (40%), Producing Institutions (40%) and Selling Institutions (20%) through online transfer to KIs and 271796 artisans.  KVIC has started disbursement of financial assistance to KIs as well as Artisans under DBT mode where the portion of MPDA is directly credited in their bank accounts.

6.                  KVIC also provides interest subvention for the bank finance for meeting capital requirement, under the Interest Subsidy Eligibility Certificate (ISEC) Scheme, availed by KIs.  The subsidy under the scheme is also remitted directly to the cash credit account of KIs online.  

7.                  Khadi certification has been made online and simple to enable new companies to start Khadi venture.

8.                  KVIC has started e-commerce platform and franchisee system for online marketing of Khadi products and extending the marketing network.

Courtesy: pib.nic.in