Govt ask KVIC to ensure fast disbursement of subsidy
The government today asked the Khadi and Village Industries Commission (KVIC) to ensure an early disbursement of Rs 400 crore subsidy under an employment guarantee scheme for 2008-09 pending with the banks.
Minister of State (Independent Charge) Micro, Small and Medium Enterprises Dinsha Patel said there was a delay in disbursing the subsidy under the Prime Minister Employment Guarantee Programme (PMEGP) due to a large number of applications as the scrutiny of the same took time.
"I would request KVIC to coordinate with... Nodal branches of banks, senior officers of financial institutions to ensure that the amount available which is yet to be spent, reaches the beneficiaries immediately," he said at a meeting of the National Khadi and Village Industries Board here.
In 2008-09, banks had approved 36,287 projects under PMEGP while the KVIC has set a target of 61,697 projects for the current fiscal.
Patel also said the government was considering a Market Development Assistance Scheme to replace the existing rebate scheme.
"Under this scheme, it is proposed to provide assistance to institutions at the rate of 20 per cent of production cost of cotton khadi, silk khadi, woolen khadi and polyvastra," he said.