PM Modi spins charkha at ‘Khadi Utsav’ in Ahmedabad

Subject: Schemes

Context: Prime Minister Narendra Modi tried his hands on the charkha while attending a ‘Khadi Utsav’ event in Ahmedabad on Saturday.

8 different schemes of Khadi & Village Industries are now merged under two heads i.e.‘Khadi Vikas Yojana’ and ‘Gramodyog Vikas Yojana’:
Khadi Vikas Yojana includes Market Promotion & Development Assistance (MPDA), Interest Subsidy Eligibility Certificate (ISEC), Workshed, Strengthening Weak Infra, Aam Aadmi Bima Yojana, Khadi Grant.
Gramodyog Vikas Yojanaa [Village Industries Grant].

Rozgar Yukt Gaon

It is an initiative by the Cabinet Committee for Economic Affairs and focuses on empowering Khadi artisans by providing resources to produce and sell their products.
The committee has proposed to bring a change in the business model of Khadi enterprises, replacing the Subsidy-based model with the Enterprise-based model.
Under this scheme, the tools and equipment like Charkha, loom and warping units used in producing Khadi will be distributed amongst 50 villages.

Market Promotion and Development Assistance (MPDA)

Market Promotion and Development Assistance (MPDA) scheme is regulated by the Ministry of MSME (Micro Small and Medium Enterprises).
It is aimed at developing new avenues for the promotion of the Khadi Industry in India.
A grant of 977 crores was sanctioned to help revive the production, selling and marketing of Khadi and small enterprises at the rural level.

Interest Subsidy Eligibility Certificate (ISEC)

Launched in May 1977, the scheme helped the enterprises involved in the production of Khadi and Polyvastra gain capital from the banks.
The rural enterprises shall be granted bank loans at only 4 per cent of interest and the remaining interest amount will be subsidized by KVIC (Khadi and Village IndustriesCommission).

Boosting Agarbatti Udyog (2020)

In 2020, the ministry of MSME provided another shot in the arm for the Gramodyog Vikas Yojana when a new programme was sanctioned to boost Agarbatti manufacturing in rural areas.
The Agarbatti artisans will be trained by the KVIC (Khadi and Village Industries Commission) to help build the enterprise-led business model in the rural sector.
Raw material, tools and equipment to produce Agarbatti will also be provided by KVIC.
This move by the ministry is aimed at reviving the Agarbatti Udyog and scope of employment in the rural enterprises.

Khadi and Village Industries Commission (KVIC)

It is a statutory body established under the Khadi and Village Industries Commission Act, 1956. It functions under the Ministry of Micro, Small and Medium Enterprises.

Objectives:

Social objective of providing employment
Economic objective of producing saleable articles
The wider objective of creating self-reliance amongst the poor and building up a strong rural community spirit

Spin Scheme

The SPIN (Strengthening the Potential of India) scheme was recently launched by the Khadi and Village Industries Commission (KVIC) to help potters become self-sufficient.
It is an initiative through which KVIC will make it easier for potters to obtain low-interest bank loans under Pradhan Mantri Shishu Mudra Yojana, allowing them to diversify their businesses and increase their income.