|
PRESS-STATEMENT Issued by Dr.Mahesh Sharma, Chairman, KVIC |
New Delhi August 1, 2001 |
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KVIC – Moving
Ahead with Major Initiatives
Khadi and Village Industries
Commission (KVIC) is moving ahead confidently with major initiatives to promote
and accelerate the process of rural industrialization in the country. Key
initiatives are in the area of technological upgradation, marketing promotion,
credit-support and human resources.
The special package of Rs.1215.85
Crores announced in May, 2001 by the Ministry of SSI & ARI has sent a very
strong positive message among all the institutions and rural entrepreneurs.
This will certainly give a much-needed boost to KVI sector, especially the 25
million strong rural artisans community of the country. It may be mentioned
that this package is an additionality to the existing budget provisions.
KVIC
expects a similar positive response from the State Governments to take concrete
measures for strengthening Khadi & Village Industries sector, specially on
the front of commercial taxes, basic infrastructure and budgetary support.
·
R & D Back-up
and Technological Upgradation
Besides strengthening our own network of research & development facilities located at Wardha, Nasik, Pune, Khanapur & Sanganer, KVIC is seeking collaboration with premier scientific and technical institutions and laboratories of the country. The targeted and time-bound programme is to raise the productivity-levels and to increase the range & quality standards of the products. Strict quality-control measures have been planned with the support & guidance from senior scientists of IIT Delhi and these will be enforced at all levels to increase the confidence and comfort level of consumers in the present competitive market. IIT Delhi has been engaged on a turn-key basis for total revamping of central research facility at Wardha to be developed as National Institute for Rural Industrialisation (NIRI). Also, KVIC is in final stage of working out an MoU with National Institute of Design (NID), Ahmedabad to provide support on critical areas of design.
A major initiative has been taken in bio-technology where KVIC efforts are focused upon bio-fertilizers and bio-pesticides. This will have its effect on availability of organic food-products through KVIC chain. This is bound to have a multiplier effect on the sector.
·
UNDP Support for capacity-building in key-areas
UNDP is providing financial support of US $ 2.576 million i.e. around Rs.12 crores for:-
(a) strengthening artisans-clusters of pottery, handmade paper & beekeeping,
(b) strengthening the resource-centres and
(c) capacity-building for marketing.
The programme is progressing and will have a major impact on these areas.
·
Credit-Support for
Rural Entrepreneurs
KVIC Scheme of Margin Money support for setting up
new rural industrial units is the most successful scheme today. It has been
designed in a way that the scheme is friendly both to entrepreneurs and the
bankers, avoiding the bottlenecks & pitfalls of similar schemes. KVIC is
monitoring at regular intervals at all levels. During last 3 years, the
progress has been very encouraging.
(a)
Total Projects funded
under MMS - 89,149
(From 1997-98 to 30.03.2000)
(b)
Total investment in
MMS Projects - Rs.2103 Crores.
In fact, the total credit support to KVI sector from
budgetary and institutional finance has increased substantially during last 3
years.
·
The performance of the
sector can be measured by the following 3 parameters:-
Year |
Production
(Rs. in
Crores) |
Sales (Rs. in
Crores) |
Employment (in
Lakh persons) |
|
1997-1998 |
4519.31 |
5112.37 |
56.50 |
|
1998-1999 |
5065.28 |
5601.01 |
58.29 |
|
1999-2000 |
6165.35 |
6729.20 |
59.23 |
|
2000-2001 (Prov.) |
7211.57 |
8000.00 |
62.73 |
|
2001-2002 (Target) |
8600.00 |
10500.00 |
67.50 |
·
Marketing –
Promotion
KVIC will energize its marketing efforts in the
areas of brand-building, renovation and modernization of sales outlets, HRD
programme for sales-staff, accounting and inventory management, computerization,
design-development through specialized professional agencies like NID and
display-cum-sales centers at major national and international airports in the
cities of New Delhi, Mumbai, Chennai, Goa & Varanasi.
In line with the announcement made by the Union
Finance Minister, Govt. of India, in Budget Speech for 2000-2001 announcing a
professionally managed Marketing Company to market Khadi and V.I. products, a
Marketing Company is being set up by KVIC under Companies Act shortly. The
Marketing Company will be set up involving Marketing Professionals, KVI NGOs,
Experts, etc. and shall cater to the functions of Marketing and Export of KVI
products in a professional manner. Modalities are being worked out.
We have allocated Rs.35 Crores this year towards the
renovation of existing sales outlets. First phase includes Khadi Gramodyog
Bhavans in New Delhi, Kolkatta, Ernakulam, Goa etc. KVIC will be promoting the
concept of exclusive Khadi
Shops to cater to the upmarket
consumers and also to adhere to the latest in fashion trends.
NID, Ahmedabad has proposed to create a special cell
for KVIC for all kinds of design-support which includes design sensitization
programme for KVIC officials and technical staff.
The assistance of NIFT is also being considered in
the area of garment-design.
Two major brands are being launched in the name of
Khadi & Sarvodaya. Sarvodaya brand will focus upon mass consumption goods
in the domestic market and for government supplies. The first list in this
category includes toilet soap, honey, pickles, spices and agarbatti. Khadi
brand is being introduced exclusively for exports and upmarket. Khadi brand
includes products like essential oils, herbal oil & soaps, face scrubs, dry
fruit honey, designer garments etc. KVIC has taken special care for proper
packaging through professional agencies for these brands. Quality standards
will be enforced very strictly for these products.
While taking all these initiatives, KVIC will adhere
to its basic principles and Gandhian ethos. KVIC products will be produced only
in rural location in an eco-friendly climate.
National Programme of Rural Industrialisation (NPRI)
as announced by the Central Government, will have a very positive impact on KVI
sector in coming years.
With all
these initiatives, KVIC is targeting to become the largest group-network in the
field of fast moving consumer goods (FMCG Sector) with a focus on items of
basic needs of the common people. KVIC offers the best range of eco-friendly
products. Already, with its 7733 exclusive sales outlets, 4408 Khadi
production-cum-sales points, 3300 whole sale points, and 31104 sales-points of
rural industries under Margin Money Scheme, KVIC is the largest network of its
type totaling 46545 sales-points. Once the Sarvodaya Biotechs initiative comes
in full swing during next 3 years, KVIC is destined to become the largest
player in its field.
*********
Issued by the
Director(Publicity), Khadi and Village Industries Commission, 3, Irla road,
Vile Parle(W), Mumbai-400 056.
