At the first meeting of the newly formed National Khadi and Village Industries Board (NKVIB) held today, minister for micro, small and medium enterprises Mahabir Prasad raised concerns over non-utilisation of the budgetary allocation for KVIC due to lack of proposals. He urged the KVIC officers to bring in new proposals for utilisation of available funds within the prescribed time period.Blaming KVIC officials for the slow progress in setting up new khadi societies, Prasad said, “I had given the direction that the new societies should be formed. But the progress in this direction has been very slow .” So far, only two khadi societies have been registered in Madhya Pradesh, six in Uttar Pradesh and none in Jharkhand and Maharashtra. The number of khadi institutions has steadily declined from 3,578 in 2001 to 1,908 in 2006. The registration of new khadi institutions was introduced to enhance employment opportunities for the weaker sections and improve their socio-economic status.The minister emphasised the importance of preparing and implementing an appropriate plan of action to increase the export of KVI products after KVIC received the status of deemed Export Promotion Council in 2006. “We must focus on quality, packaging and marketing of khadi products, keeping in mind the need to increase the wages of artisans and ensure their economic and social upliftment,” said Prasad. Speaking on the occasion, Kumud Joshi, KVIC chairperson referred to the steady decline in khadi production by Rs 200 crore from Rs 700 crore in fiscal 1998-99. “Artisans’ employment has also plunged to 9 lakh at present from 14 lakh in 1998-99. The reduction in the number of khadi institutions has severely reduced employment,” Joshi observed. She blamed the lack of sanctioned funds targeted for either purchase of new equipment or replacement of old material.Joshi, however, added that 20 lakh additional jobs could be created in four to five years for a low capital investment — of less than Rs 18,000 per person. “A proposal in this regard has already been submitted to the Government.” She informed the Board that the Finance Ministry has given in-principle clearance to a Rs 3,475-crore fund requirement proposal for generating additional employment and strengthening existing infrastructure. The proposal has been forwarded to Asian Development Bank (ADB), which has sanctioned Rs 1.5 crore for a preliminary study by experts on the matter. KVIC also plans to set up a national technological institute at Nasik, Maharashtra, for undergraduate training, she said. n Khadi production falls by Rs 200 crore between 1998 and 2006 n New khadi societies to be set up n Increased focus on quality, packaging andmarketing of products n Fin Ministry gives in-principle nod for Rs 3,475 crore fund
