Question : DEVELOPMENT OF KHADI AND POLYVASTRA

(a) whether the Government has provided financial assistance for Khadi and Polyvastra;

(b) if so, the funds granted in this regard during the last three years;

(c) whether this assistance is provided as a special assistance for fixed period; and

(d) if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) FORMICRO, SMALL AND MEDIUM ENTERPRISES (SHRI DINSHA PATEL)

(a)&(b): The Union Government provides financial assistance through Khadi and Village Industries Commission (KVIC) for khadi and polyvastra under its Khadi Grant and Village Industries (VI) Grant Heads. Besides, budgetary support is also made available for implementation of various programmes relating to khadi and village industries. Funds released by the Government to KVIC under the above two heads during the last three years are as under:


Year	Khadi Grant	VI Grant
2006-07	138.30	52.00
2007-08	99.90	39.00
2008-09	175.00	40.94

(c)&(d): Funds released under Khadi Grant are for promotion and development of khadi, reimbursement of rebate on sale of khadi to khadi institutions, interest subsidy on term and working capital loans taken by khadi institutions at reduced interest rate of 4%, allocation for schemes envisaging development of new products, designs and better packaging for khadi products and welfare of khadi artisans, including the Khadi Karigar Janashree Bima Yojana.

Under VI Grants head, KVIC meets the expenditure towards development of village industries including polyvastra through technology upgradation, reimbursement of rebate on retail sales of polyvastra, participation in exhibitions, allocation for scheme for development of new products, designs and better packaging for VI products and setting up Common Facilities Centres.

Question : DEVELOPMENT OF KHADI AND POLYVASTRA

Answer given by the minister

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