'Khadi clusters' to be formed, says FM

Highlighting the importance of village industries, Union Finance Minister P Chidambaram today said 39 ‘Khadi clusters’ were being formed throughout the country and 10 of them would be started in Tamil Nadu.

“We need both village industries and large industries for the development of the nation,” he said, inaugurating the Karaikudi Khadi Cluster here.

Village industries needed to be modernised, Khadi and village products should be diversified, and new products should be introduced, he said.

The Asian development Bank had given Rs 200 crore as loan for the development of Khadi and village industries.

The amount should be used to create new village based industries, he said. Kumudh Joshi had been appointed as the Chairman of the KVIC (Khadi Village Industries Centre) to give a boost to the village industries.

On complaints that the Khadi units had not received their subsidy, he said the units had not submitted their accounts for the past five years.

He said subsidy would be given after the accounts were audited and submitted.

He urged Congressmen and others to allocate at least five per cent of their income for the purchase of Khadi and village products. The Finance Minister later inaugurated the 189th branch of the Pandian Grama bank at O Siruvayal.

The Bank Chairman Sundaraj said the bank's business would touch Rs 3,500 crore this year and Rs 5,000 crore the next.