The Khadi MPDA Scheme is a government plan to help the Khadi industry in rural India. The Khadi and Village Industries Commission (KVIC) is responsible for the scheme's implementation. It gives financial assistance to Khadi institutions for market promotion and development.
Overview of the Khadi MPDA Scheme
The Khadi MPDA Scheme was started in 2013 to boost the production and sales of Khadi and create jobs in rural areas. Under the scheme, financial aid is given to Khadi institutions for marketing and promotion. This includes activities like participating in events and fairs. The scheme helps in building marketing infrastructure. It also helps in training artisans in marketing techniques.
| Scheme Name | Khadi MPDA Scheme |
| Launch Year | 2013 |
| Objective | To increase production and sales of Khadi and create employment opportunities in rural areas |
| Key Benefits | Financial assistance for marketing and promotional activities, development of marketing infrastructure, training of artisans in marketing techniques |
| Guidelines | Institutions must submit a project proposal with a detailed budget, activities include participating in fairs, exhibitions, and events |
| Fund Allocation | Released in phases based on project milestones and submission of project reports |
| Overall Impact | Increased production and sales of Khadi products, generated employment opportunities in rural areas, contributed to the economic development of the country |
Objectives of the Khadi MPDA Scheme
The main objective of the Khadi MPDA Scheme is to promote and develop the Khadi industry in rural areas of India. The scheme aims to achieve the following objectives:
- Increase the production and sales of Khadi
- Generate more employment opportunities in rural areas
- Promote the marketing and branding of Khadi products
- Develop marketing infrastructure for Khadi institutions
- Train artisans in marketing techniques and product development
Salient Features of the MPDA Scheme
You’re required to send in your quarterly claims within 15 days after the quarter ends, using the online MDA Processing System from KVIC. Late submissions won’t receive any support. If you send your claim to your state or divisional director, they’ll pass it on to the Khadi Directorate for a subsidy.
Once the claim is checked, it should get to the Directorate within a week. They’ll then process it within five days. The support amount is calculated as 30% of the raw materials cost. You must also submit a Utilisation Certificate confirmed by a Chartered Accountant. Typically, funds are transferred through the Debit Transfer System into separate bank accounts.
Nature of Assistance
This section would focus on the specifics of the assistance provided under the MPDA scheme, including its format (like financial, technical, and marketing), the scale of the assistance, and the requirements for beneficiaries to receive assistance.
Production Institutions
- Involved in raising the manufacturing standards and product quality for Khadi.
- To upgrade the infrastructure and technology.
- The creation of CFCs (Common Facility Centres).
Moreover, suggestions on how to adopt the most recent trends.
Selling Institutions
This section might delve into the types of selling institutions involved in the MPDA scheme, detailing their functions, their relationships with production institutions, and how they’re supported under the scheme.
Entrepreneurs
This section might detail how entrepreneurs are supported under the MPDA scheme. Topics could include access to resources, development opportunities, and the role of entrepreneurs in the larger ecosystem of the scheme.
Application Protocol
This would be a guide on how to apply for assistance under the MPDA scheme. The section could include the steps to follow, necessary documents, and other key details of the application process.
Fund Allocation for the Scheme
Under the Khadi MPDA Scheme, financial assistance is provided to Khadi institutions for marketing and promotional activities. The scheme provides up to 30% of the total cost of the project as assistance. The maximum amount of assistance that can be provided to an institution is ₹10 lakhs per year.
Guidelines of the Khadi MPDA Scheme
- The scheme is open to all Khadi institutions that meet the eligibility criteria.
- The institutions can apply for financial assistance for marketing and promotional activities.
- The scheme offers help for events like fairs, exhibitions, and others.
- The scheme also supports building marketing infrastructure and training artisans.
- Institutions must submit a project proposal and budget for the proposed activities.
- The proposal is evaluated by a committee before the approval of the assistance.
- The assistance is released in a phased manner based on the completion of milestones and submission of project reports.
- The institutions are required to maintain proper records and submit periodic reports on the utilisation of the assistance
Benefits of the Khadi MPDA Scheme
The Scheme has several benefits for Khadi institutions and artisans. Some of the benefits of the scheme are:
- Financial assistance for marketing and promotional activities
- Development of marketing infrastructure for Khadi institutions
- Training of artisans in marketing techniques and product development
- Increased production and sales of Khadi products
- Employment generation in rural areas
Operating Conditions for Fund Release
- The fund allocation for the Khadi MPDA Scheme is done in phases
- First installment is released after project approval
- Subsequent instalments are released based on completion of milestones and project reports submission
Conclusion
The Khadi MPDA Scheme has helped promote and develop the Khadi industry in rural India. It helps by creating job opportunities and increasing production and sales. With ongoing government support, the industry is poised for growth. By the growth of the scheme, the country’s economic development will also grow. For any clarifications on the scheme or expert advice, contact our experts at Vakilsearch.
FAQs
Is Khadi a government company?
Khadi is not a company, but a type of fabric traditionally made in India. The term khadi refers to hand-spun and hand-woven cloth. The Khadi and Village Industries Commission (KVIC) is a statutory body established by the government of India to promote and support khadi and other village industries.
Which Khadi brand is original?
The original Khadi is not associated with a specific brand. It is a type of fabric and not a trademark. The KVIC, however, does grant the use of the 'Khadi Mark' to producers to certify that a product is made of genuine khadi material. So, you can look for this mark to ensure the authenticity of the khadi product.
How many types of Khadi are there?
Khadi is versatile and can be made from different raw materials, including cotton, silk, and wool, leading to various types such as Khadi Cotton, Khadi Silk, and Khadi Wool. The texture and appearance can vary widely, depending on the material and the spinning and weaving process.
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