Cabinet approves continuation of Khadi Gramodyog Vikas Yojana till FY20

The Union Cabinet Tuesday approved continuation of Khadi Gramodyog Vikas Yojana until 2019-20, an official statement said.

The Cabinet Committee on Economic Affairs (CCEA) has given approval to continue the existing schemes of MPDA, Khadi Grant, ISEC and Village Industry Grant, all subsumed under 'Khadi and Gramodyog Vikas Yojana' at the total cost of Rs 2,800 crore for the period 2017-18 to 2019-20.

It further said the nod has also been given to bring in a new component of 'Rozciar Yukt Gaon' to introduce enterprise-based operation in the Khadi sector and to create employment opportunities for thousands of new artisans in the current and next financial year (2018-19 and 2019-20).

Rozgar Yukta Gaon (RYG) aims at introducing an 'Enterprise-led Business Model' in place of 'Subsidy-led model' through partnership among three stakeholders- KRDP-assisted Khadi Institution, Artisans and Business Partner.

"It will be rolled out in 50 Villages by providing 10,000 Charkhas, 2000 looms & 100 warping units to Khadi artisans, and would create direct employment for 250 artisans per village," the release said.

The total capital investment per village is estimated at Rs 72 Lakh as subsidy, and Rs 1.64 crore in terms of working capital from the business partner.

Under the village industry verticals, special focus would be on agro-based and food processing (honey, palmgur etc), handmade paper and leather, pottery and wellness and cosmetics sectors through product innovation, design development and product diversification.

"For this initiative, advanced skill development programmes shall be conducted through existing Centres of Excellence such as CGCRI, CFTRI, IIFPT, CBRTI, KNHPI, IPRITI etc," the release added.

As a part of rationalisation exercise, it said that eight different schemes of Khadi and Village Industries have now been merged under two umbrella heads -- 'Khadi Vikas Yojana' and 'Gramodyog Vikas Yojana'.