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Khadi industry set to buck layoff trend, attract artisans

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Hiral Dave

Posted: Jan 31, 2009 at 0330 hrs IST

Rajkot Aims to offer over 13 lakh jobs using 150-million-dollar grant by AD Bank

Bucking the trend, the Khadi and Village Industries Commission (KVIC) is all set to offer over 13 lakh jobs across the country in the next two years. At a time when the heat of the financial meltdown is being felt all over the globe, the Commission plans to introduce khadi in its new avatar, thanks to a grant of whopping 150 million dollars by the Asian Development Bank.

This is for the first time that a commission dealing with rural industry has been allotted such grant. The fund, which is in addition to the annual grant of Rs 1,300 crore by the Government of India, will help the Commission introduce reforms at every level from weaving to designing and infrastructure.

In the first phase, 300 of the 3,000 institutions associated with KVIC have been selected under the special programmes. It includes 20 institutions from Gujarat.

“The thrust area is to increase jobs in the industry by three folds in the coming two years,” said KVIC chairperson Kumud Joshi, who was in Rajkot to attend a Khadi Fashion Show on Mahatma Gandhi Nirvan Day on January 30. She said that while the regular Central grant will be used to maintain the routine programmes, the ADB fund will be used for reforms.

At present, the annual production of khadi in India stands at 14 lakh square metres (Rs 700 crore). The sector employs over seven lakh workers, including weavers and spinner. “We are aiming at three-fold increase in production and revenue by increasing the workforce by equal folds,” said Joshi.

Till 2000, the industry had a workforce of over 15 lakh. Now, its target is to increase this number to 20 lakh artisans.

To attract youths, KVIC is also promising better wages, which are likely to go up to Rs 100 and Rs 150 respectively from the existing slab of Rs 60-70 and Rs 80-100 per day.

Plans are also afoot to provide better looms to workers, upgrade infrastructure at working units, to set organic colouring system, introduce latest designs, aggressive marketing, renovation of retail outlets, and management reforms.

“The plan is to go for value addition. Instead of material, the sale of readymade khadi apparels will now be promoted. Even in readymade clothes, the latest designs will be incorporated to reach a larger customer base,” said Joshi.

While the grant was released earlier this month, its complete utilisation plans are yet to be made. “It will be decided in phases,” she said.

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