(a): whether the Government has noticed the difficulties in the sales of Khadi products after the implementation of Marketing Development Assistance in place of rebate;
(b): if so, the steps taken to rectify it;
(c): whether the Union Government has received any proposal from Government of Kerala to restore the previous rebate for Khadi instead of MDA; and
(d): if so, the details thereof?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)
(a): The Government had approved implementation of the Market
Development Assistance (MDA) from 01.04.2004 in place of the
rebate scheme on sales of khadi. As implementation of the MDA
scheme has been kept in abeyance till 31.03.2005 and the
Government has also announced on 10.08.2004 the rebate scheme for
the current financial year, there has been no occasion of noticing
difficulty, if any, in implementing the MDA scheme. Further, the
Government has initiated steps to take up a study of the rebate
scheme with a view to evaluating it before deciding on its
continuation beyond 31.03.2005.
(b) : In view of the reply at (a) above, the question does not arise.
(c)&(d) : Yes, Sir. The Union Government has received a letter
dated 27.07.2004 from the then Chief Minister of Kerala and two
letters dated 12.08.2004 and 12.10.2004 respectively from Shri
C.F. Thomas, Minister of Rural Development and Registration,
Government of Kerala, suggesting restoration of the khadi rebate
scheme.