Cabinet Committee on Economic Affairs approves continuation of Khadi Gramodyog Vikas Yojana (KGVY) from 2017-18 to 2019-20. This decision is taken by the central govt. in a meeting presided over by the PM Narendra Modi. Rozgar Yukt Gaon (RYG) scheme is going to launch to provide an enterprise led business model.
RYG Yojana 2019-20 is going to replace the existing subsidy led model. Under the new Khadi Gramodyog Vikas Yojana (KGVY), central govt. approves 2 umbrella schemes namely Khadi Vikas Yojana & Gramodyog Vikas Yojana to merge 8 different schemes of Khadi and Village Industries.
Another major step is to setup 4 design houses across the country to capture regional variations, to provide access to Khadi Institutions, to evolve modern designs, ethnic wear etc. with an investment of Rs. 5 crore each.
Khadi Gramodyog Vikas Yojana (KGVY) to Continue
Central govt. has approved to continue Khadi Gramodyog Vikas Yojana (KGVY) from 2017-18 to 2019-20 and given approval to the following:-
- To continue existing schemes of MPDA, Khadi Grant, ISEC and Village Industry Grant and now all these schemes are subsumed under a single Khadi and Gramodyog Vikas Yojana. The total cost for the successful implementation of this scheme is Rs. 2800 crore for the period of 2017-18 to 2019-20.
- New Khadi Vikas Yojana 2019-20 is going to include the scheme namely Market Promotion & Development Assistance (MPDA), Interest Subsidy Eligibility Certificate (ISEC), Workshed Scheme for Khadi Aritsans, Strengthening Weak Infrastructure of Khadi Insitutions and assistance for marketing infrastructure, Aam Aadmi Bima Yojana, Khadi Grant, and Khadi & Village Industries S&T.
- The Gramodyog Vikas Yojana is going to include scheme namely Village Industries Grant.
Now 8 different scheme of Khadi and Village Industries are merged under 2 umbrella heads namely Khadi Vikas Yojana and Gramodyog Vikas Yojana.
Rozgar Yukt Gaon (RYG) Scheme 2019-20
The central govt. will also bring a new component namely Rozgar Yukt Gaon (RYG) to launch enterprise based operations in the Khadi sector. RYG Scheme is going to generate large number of employment opportunities for thousands of new artisans in the current FY 2018-19 and in the next FY 2019-20. This scheme aims to introduce an ‘Enterprise led business model’ in place of ‘Subsidy led model’.
This would be done under RYG Scheme through partnership among 3 stakeholders namely KRDP-assisted Khadi Institution, Artisans and Business Partner. RYG Scheme is going to be rolled out in 50 villages by providing 10,000 Charkhas, 2000 looms and 100 warping units to Khadi artisans. This scheme is going to create direct employment for 250 artisans per village. The total capital investment per village is around Rs. 72 lakh as subsidy and Rs. 1.64 crore in terms of working capital from business partner.
Under the Village Industry, govt. will lay special emphasis on Agro based and food processing, handmade paper and leather, pottery, wellness and cosmetics sectors through product innovation, design development and product diversification. For this purpose, govt. will organize advanced skill development program through existing Center of Excellence such as CGCRI, CFTRI, IIFPT, CBRTI, KNHPI, IPRITI etc.
The another major component is to make Production Assistance competitive and incentive based. The incentive structure is going to focus upon raising productivity, turnover, quality assurances. This would be extended on the basis of an objective scorecard. All the Khadi institutions would get 30% subsidy and these institutions would be eligible for an additional 30% incentive for efficiency, optimal utilization of resources, reduction of waste and effective managerial practices.