Khadi and village industries output goes up by 144%

New Delhi, Mar 22 | Updated: Mar 23 2005, 05:52am hrs
The khadi and village industries (KVI) sector has recorded a growth of 144.3% over the period 1997-98 to 2003-04 as against the 71.6% growth in total industrial production of the country for the same period. Production in this sector almost doubled to Rs 9,682 crore in 2003-04 from Rs 4,519 crore in 1997-98 as per Reserve Bank of India (RBI) estimates, minister for small scale industries Mahabir Prasad informed Parliament.

As against the original Tenth Plan outlay of Rs 2,950 crore for the ministry of agro and rural industries, an amount of Rs 2,745.03 crore has already been made available to it by the government in the first four years of the Tenth Plan (2002-03 to 2005-06), so far.

In order to extend the outreach of credit to this sector the government is operating the interest eligibility certificate scheme (ISEC) through the Khadi and Village Industries Commission (KVIC). The scheme provides bank loans to KVI units at subsidised rates of interest.

In order that khadi products are able to compete with other products in the market, a Product Development Design Intervention and Packaging (PRODIP) scheme for improving designs and packaging has been launched by the government.