Khadi and Village Industries Commission (KVIC) plans, promotes, organizes, and implements programs for the development of Khadi and other village industries in rural areas nationwide. KVIC also helps in building up the reserve of raw materials for supply to producers. The commission focuses on the creation of common service facilities for the processing of raw materials, such as semi-finished goods. KVIC has also helped in the creation of employment in the Khadi industry.

Functions of KVIC

1. Building up of a reserve of raw materials and implementation for supply to producers
2. Formation of common service facilities for processing of raw materials that include semi-finished goods
3. Promoting the sale and marketing of Khadi and Village Industries products, as well as handicrafts
4. Promoting research in the village industries sector-related production techniques and equipment
5. Providing financial assistance to individuals and institutions for the development and operation of Khadi and Village industries

Objectives of KVIC

1. To promote Khadi in rural areas
2. To provide employment
3. To produce saleable articles
4. To create self-reliance amongst the poor
5. To build up a strong rural community

Schemes under Khadi and Village Industries Commission (KVIC)

1. Schemes under Khadi and Village Industries Commission (KVIC)

Khadi and village crafts, like any other business, require a marketing strategy to reach out to potential clients. This MPDA scheme was created with the goal of promoting Khadi crafts and enhancing artisans’ income. 

Objectives of Marketing Promotion and Development Assistance Scheme

1. To assist the marketing ventures of Khadi enterprises.
2. Financial aid and accurate disbursement of the same for Khadi units.
3. Permit market compartmentalization for products from Khadi and Village establishments.
4. Encourage awareness programs, exhibitions, training, and workshops.
5. Increase the demand for the products.
6. Aid in infrastructural development of the Khadi and Village Industry units.

Salient Features of the MPDA Scheme 

1. It is mandatory to submit quarterly claims within 15 days of completion. Further, this submission must be online in the MDA Processing System of KVIC.
2. No assistance for late submissions.
3. If the applicant submits the claim to State or Divisional director, he/she shall process it to Directorate of Khadi for subsidy.
4. Following verification, the letter will reach the Directorate within 7 working days.
5. The Directorate will process the same in 5 days.
6. The calculation of aid is 30% of the cost (raw materials).
7. It is an obligation to submit the Utilisation Certificate authorized by a Chartered Accountant
8. The transfers are usually via Debit Transfer System (separate bank accounts).

Eligibility

Any Khadi industry with a valid Khadi certificate from KVIC is eligible to avail of the benefits of the scheme.

• Institution should have valid Khadi certificate
• The institution should be categorized as A+, A,B and C

Application Process

The total amount of MMDA on production will be claimed by the producing Institution from the KVIC and will be distributed amongst the stakeholders viz., spinners and weavers, producing Institutions and selling Institutions in the ratio 40%, 20% and 40% respectively.

Producing Institutions shall submit quarterly claim of MMDA based on the actual production achieved during the preceding quarter of the financial year. The difference, if any, would be adjusted in the last quarter of the financial year on the basis of accounts audited by a Chartered Accountant. The MMDA, preferably, shall be reimbursed electronically by the State/Divisional office of the KVIC on a quarterly basis.

Nature of assistance

Modified MDA (MMDA) shall be allowed @ 30% on the Prime cost of Khadi (cotton, silk, woollen) and Polyvastra

Marketing Promotion and Development Assistance Pattern

Production Institutions 

1. Involved in the improvement of manufacturing and quality of the Khadi products.
2. To improve the technology and infrastructure.
3. Setting up Common Facility Centres (CFCs).
4. Furthermore, advice on the latest trends to inculcate the same.

Selling institutions 

1. Mainly aid in sales and promotional events of the khadi units.
2. Sales unit refurbishment.
3. Further, keeping up with the technology that will enhance the sales.
4. To employ professionals that prove valuable in marketing the products in both digitals as well as print media.
5. Inculcate e-commerce, franchisees and so on to observe a spike in sales.

Entrepreneurs 

1. Assist by initiating Aadhar linked bank or post office account which will receive the financial aid.
2. Most importantly, to increase the production.
3. Additionally, to achieve the target in sales.
4. Help to engage regularly with Khadi industry activities such as spinning, dyeing, and weaving.

Marketing and Promotion 

1. Reinstall the sales unit.
2. Construct attractive Khadi plazas.
3. Encourage participation in International trade fairs and exhibition.
4. Establish and strengthen connections with dealers.