Question : KHADI REFORM AND DEVELOPMENT PROGRAMME

(a) whether the Government has approved the Khadi Reform and Development Programme;

(b) if so, the salient features of the said programme alongwith the details of the financial allocation made theron;

(c) whether assistance has been received from financial institutions for the programme;

(d) if so, the details thereof;

(e) whether the said programme is likely to revive the khadi sector; and

(f) if so, the details thereof and the manner in which the said programme is likely to be implemented?

Answer given by the minister

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

(a) to (f): A statement is placed on the table of the Sabha.

STATEMENT REFERRED TO IN ANSWER TO PARTS (a) TO (f) OF THE LOK SABHA STARRED QUESTION NO. 262 FOR ANSWER ON 16.03.2010.

(a)to(d): The Government has approved (on 10 December 2009) a comprehensive â€˜Khadi Reform and Development Programme (KRDP)â€™ to revitalize the khadi sector with enhanced sustainability of khadi, increased incomes and employment of spinners and weavers, increased artisansâ€™ welfare and development of selected village industries. For implementation of the programme, an amount of US$ 150 million from Asian Development Bank (ADB) is being provided to the Government of India and will be released to Khadi and Village Industries Commission (KVIC) as â€˜grants-in-aidâ€™ under budgetary allocation through the Ministry of MSME. The funds will be made available by ADB in four tranches during the programme implementation period of 36 months from the date of loan effectiveness (i.e., 02 February 2010) as per the activities given below:


Sr. No.	Activity	Cost	US $ in Million

1	Khadi Sector Reforms	(Khadi Mark, market linked pricing, rationalized Support	to khadi, organizational reform, IT and associated	capacity building, raw material procurement and assessment)	20
2	Marketing	{Marketing organization (MO), 20 new sales outlets under	MO, up-gradation of 4 sales outlets in each of 300 khadi	institutions}	57
3	Capacity and Equipment	(Revitalizing Khadi Institutions â€“ Production, equipment,	capacity building etc., New khadi ventures, comprehensive	capacity building of trainers and training institutions of	KVIC and synergies with Village Industries)	61
4	Contingency	12
Total	150

An amount of Rs. 96 crore (first tranche) has been released to KVIC for the purpose during February 2010.

(e)&(f): Under KRDP, direct reforms programme will be implemented through 300 selected khadi institutions who would be supported with modern equipment comprising charkhas, looms, ready warping machines, ready to use units, sheds, working capital and provided support for capacity building of khadi workers. It also provides for 50% representation of khadi spinners and weavers in its management to ensure that the benefit of surpluses generated through increased sales realization are transparently passed on to the sartisans. Provisions for updation of Central Sliver Plants of KVIC and setting up of a Marketing Organization through private participation have also been made for market development activities like market survey, design inputs, brand building, khadi mark promotion, development of clusters in five traditional industries, opening of new sales outlets in metropolitan cities and State capitals and renovation and modernisation of institutional sales outlets.

Question : KHADI REFORM AND DEVELOPMENT PROGRAMME

Answer given by the minister

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