Khadi: Need to bring in a corporate structure in KVIC: Nitin Gadkari

Economy


New Delhi: The government needs to bring in a commercial, ‘corporatised’ approach to the working of Khadi and Village Industries Commission (KVIC) to market khadi products and increase their export, Union minister Nitin Gadkari said in the Parliament on Thursday.

“KVIC is doing good work, but with a renewed vision, we have to commercially bring in a corporate structure,” Gadkari said in a debate on the workings of the MSME ministry in Rajya Sabha.

“Only then will its export rise,” Gadkari said.

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Gadkari said that KVIC’s turnover in FY 19 was Rs 75,000 crore, and is expected to be Rs 1 lakh crore in FY 20, adding that the government is looking to increase it to five lakh crore in the next five years.

“We have to think of marketing khadi products, there is huge potential,” he said.

ET had reported on January 19 that the government was looking to corporatise the marketing wing of KVIC.

Gadkari on Thursday also said that payments of MSMEs should be disbursed within three months in order to make them successful. “If they get these payments, only then will they go ahead, otherwise small businesses will suffer,” he said.

A Reserve Bank of India-led panel in its report on the MSME sector had recommended such a measure last year.

“The committee recommends KVIC should be corporatised with focus on promotional work. The marketing function may be hived off and also corporatised to enable private participation and enabling (the) use of khadi in the private sector,” the recommendations of the panel had said.

The Khadi and Village Industries Commission Act, 1956 allows KVIC “to promote the sale and marketing of khadi or products of village industries or handicrafts and for this purpose forge links with established marketing agencies wherever necessary and feasible”.



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