Having seen its network shrinking over the years, the Khadi and Village Industries Commission(KVIC) has decided to reform its working pattern by introducing latest technology and machinery in the production units and allowing easy accreditation to private players.
A decade back, around 3,000 institutions were producing and selling khadi products under KVIC?s supervision, but many institutions failed to sustain due to low revenue and the number fell to 1,900 at the start of this year.
?Now, we want to revive our working pattern. Our machinery is over 10-year old, so we plan to introduce new machines and technology into the production units, besides enhancing the wages of spinners and weavers,? KVIC chairwoman Kumud Joshi told FE. ?In the next three years, the commission will introduce new machinery, impart training to spinners and weavers in 300 units whose revenue is low and will enhance the average wages of spinners and weavers to Rs 150 a day,? she said.
Seeking to bring more institutions within its fold, the commission has decided to give easy accreditation. ?We would give easy licences to private players, keeping in tact our requirement of quality products,? Joshi said. KVIC will also allow free pricing of products by private players. ?This would be the first time that the institutes could decide the price,? KVIC chief executive officer JS Mishra said. According to an assessment made by KVIC, the revival plan requires Rs 3,435 crore. Asian Development Bank would finance a part of the requirement. The ADB had on October 2 approved a loan of $150 million to the government, which will give this as interest-free grant to the commission for use in three years.
