(a) whether Khadi and Village Industries Commission (KVIC) is responsible for effective recovery of loans which were advanced to Non-Governmental Organisations (NGOs) by the banks on its recommendations;
(b) if so, the details thereof;
(c) whether the Government are giving further grants in aid to KVIC despite its dismal performance; and
(d) if so, the reasons therefor and the action proposed to effect recovery of loans advanced by banks?
THE MINISTER OF STATE FOR AGRO & RURAL INDUSTRIES ( SHRI NIKHIL KUMAR CHOUDHARY )
(a): No, Sir. However, the Khadi and Village Industries
Commission (KVIC) is responsible for recovery of loans advanced
by the KVIC.
(b): Does not arise.
(c): The Central Government provides financial assistance in the
form of loans and Grants to the Khadi and Village Industries
Commission for the development and promotion of Khadi and Village
Industries. The KVIC under Rural Employment Generation Programme
has been able to create 14.42 lakh job opportunities by
31.03.2002.
(d): The KVIC is not perceived to be a financial institution. In
order to improve the quality of proposals, the `Pattern approach`
has been replaced by the `Project approach` under which the loan
proposals are now appraised by the Banks who are responsible for
the recovery of loans.