ADB aid of Rs 600 cr for Khadi & Village Industries

MUMBAI: The Asian Development Bank has approved an aid of Rs 600 crore to the Khadi and Village Industries Commission for technological upgrade of over 300 khadi and village industrial units.

"The money will be utilised for technological upgrade of over 300 khadi and village industrial units," KVIC Chairperson Kumud Joshi told reporters here on Wednesday.

In the past, KVIC had been receiving only piecemeal support which was inadequate for the growth of the sector. Hence, KVIC approached the Finance Ministry to take up its case with ADB.

The ADB appointed PriceWaterhouseCooper as a consultant to appraise the proposal and based on its recommendation sanctioned the USD 150 million aid over a period of three years.

"Over 9 lakh workers in the sector use outdated equipment, which affects capacity-building and increase in their supplementary income," Joshi said.

"With this assistance, the situation is likely to improve, she added.

The Khadi and village industries production during 2006-07 stood at Rs 491 crore with 8.8 lakh persons gainfully employed. Village industries turnover during the year stood at Rs 13,537 crore.