ADB to provide USD 150 mn loan to revive khadi industry
Multilateral lending agency Asian Development Bank on Friday said it will provide USD 150 million (Rs 675 crore) loan to India for reviving its khadi industry.
By PTI |
NEW DELHI: Multilateral lending agency Asian Development Bank on Friday said it will provide USD 150 million (Rs 675 crore) loan to India for reviving its khadi industry.
The revival of khadi industry is expected to give impetus to employment opportunities, especially in the country's rural areas where 73 per cent people are poor, ADB said in a statement.
The loan will be released in four installments over a period of three years.
India's 11th Five-Year Plan has laid emphasis on khadi production pointing out that it has huge employment prospects, particularly for women and minorities.
"Even with the recognition of khadi in India and the large and diverse potential market the country provides, sales have nearly stagnated and fallen behind the overall strong market demand enjoyed by the textile market," said Jiro Tsunoda, senior finance specialist of ADB's South Asia department.
The aid also include USD 2 million (Rs 9 crore) grant which will be provided by the Japan Special Fund to support the implementation and monitoring of the progress of the khadi industry reform package funded by the ADB loan.
Khadi sector, which account for only less than one per cent of the country's textile market, suffer from ageing equipment, inconsistent product quality and lack of professional expertise and funding.
The revival of khadi industry is expected to give impetus to employment opportunities, especially in the country's rural areas where 73 per cent people are poor, ADB said in a statement.
The loan will be released in four installments over a period of three years.
India's 11th Five-Year Plan has laid emphasis on khadi production pointing out that it has huge employment prospects, particularly for women and minorities.
"Even with the recognition of khadi in India and the large and diverse potential market the country provides, sales have nearly stagnated and fallen behind the overall strong market demand enjoyed by the textile market," said Jiro Tsunoda, senior finance specialist of ADB's South Asia department.
The aid also include USD 2 million (Rs 9 crore) grant which will be provided by the Japan Special Fund to support the implementation and monitoring of the progress of the khadi industry reform package funded by the ADB loan.
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Khadi sector, which account for only less than one per cent of the country's textile market, suffer from ageing equipment, inconsistent product quality and lack of professional expertise and funding.
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