KVIC asks for Rs 3,200 cr for development of khadi

The KVIC has sent the proposal to the Ministry of Finance and the Ministry of Micro, Small and Medium Enterprises. The Centre has marked the proposal to the Asian Development Bank (ADB) to assess its future implication. PricewaterhouseCoopers (PwC) is the consultant to the project.

"We have asked the central government to give us Rs 3,200 crore to revitalize khadi. This is the amount, as per our estimations, which is required to invigorate the sector," Joshi said.

The KVIC, with present annual turnover of Rs 16,000 crore, has ambitious plans for the coming few years. It aims at doubling its production and generating employment opportunity for over 200,000 more persons by 2011-12. It also envisages to export around Rs 1,000 crore of goods in next four years.

It also plans to reach a growth rate of over 9.5 per cent in the first quarter of the Eleventh Plan. The sector is currently growing at a rate of about 7 per cent.

The commission is also mulling to develop "Khadi Malls" across the country. Tentatively to be called the "Khadi Plazas", the malls will house agri- products like honey, handmade papers, shampoo, soaps and leather products along with khadi products.

"The Khadi Plazas will be the meeting point for institutions from all over the country engaged in producing khadi and agriculture-related products," she informed. A major portion of the Rs 3,200 crore seeked from the government will be used for the development of these malls.

The KVIC is also working for signing a memorandum of understanding (MoU) with agriculture universities and farmers to produce "natural coloured cotton". This cotton has characteristic colours, mainly green, brown, dark brown and almond.

"We plan to evolve it on a large scale. To encourage its production, we are offering 25 per cent more price than what the farmer gets in the open market."