KVIC to get Rs 750-crore aid from ADB to strengthen khadi societies

BANGALORE: The KVIC will get a Rs 750 crore aid from the Asian Development Bank to strengthen khadi societies by replacing obsolete looms with modern equipment, Union Minister of State for Small and Medium Enterprises K H Muniyappa today said.

The bank would route the funds to Khadi and Village Industries Commission (KVIC) through the central government, Muniyappa told reporters here.

The ADB aid will help install new machinery at khadi units, evolve new designs and set up marketing outlets for khadi products, Muniyappa said.

The funds will be used to strengthen grassroots khadi societies by replacing obsolete looms used by poor weavers, artisans and spinners, he said.

The KVIC is focusing on marketing Brand Khadi aggressively and also giving special focus on the designing aspect and attractive packaging of khadi and other products.

Each district in the country would have a procurement and processing unit of khadi products, Muniyappa said. "For this purpose, the government has roped in National Small-scale Industries Federation," he said.

The central government aims to create four million new entrepreneurs with an outlay of Rs 24,000 crore during the 12th Plan, Muniyappa said. "The government intends to produce between 150 and 200 new entrepreneurs in each of the districts," he added.