Govt to grant deemed export promotion council status to KVIC

New Delhi, Dec 10 (UNI) The government will grant deemed export promotion council (EPC) status to the Khadi and Village Industries Commission (KVIC), following which extended assistance on the pattern of umbrella EPCs like Federation of Indian Export Organisation (FIEO) will be available to the organisation.

The decision by the Ministry of Commerce will also pave way for approval of KVIC's proposals for participation in international fairs, organising buyer-seller meets, as per MDA/MAI guidelines.

KVIC operates through 30 Khadi and Village Boards and over 5,000 institutions in different states. Its products include khadi (hand woven textiles), herbal products, handmade paper, agarbatti, handicrafts and processed foods. These prodcuts are registered with different export promotion councils.

It exported goods worth Rs 39 crore in 2004-05, which was projected to grow to Rs 300 crore in the next five years. During 2004-05, about 76 lakh persons were employed in khadi and village industries.

The ministry has also identified six EPCs having the potential to create employment for women and weaker sections. These include Council for Leather Exports (CLE), Shellac and Forest Products Export Promotion Council (SHEFEXIL), Pharmaceutical Export Promotion Council (PHARMAEXIL), Cashew Export Promotion Council (CEPC), Export Promotion Council for Handicrafts (EPCH) and Apparel Export Promotion Council (AEPC).

The Department of Rural Development has cleared four projects submitted by SHEFEXIL, involving an investment of Rs 33.45 crore, with 100 per cent central assistance.

The projects inculde proposal for guar cultivation in Haryana, Rajasthan and Gujarat at an outlay of Rs 14.5 crore; increasing lac cultivation in West Bengal, Chhattisgarh, Orrisa and Andhra Pradesh at a cost of Rs 15 crore; and cheronjee cultivation in Chhindwara district of Madhya Pradesh at Rs 10.65 lakh.

There is also a proposal for lac cultivation in Patalkot and Chhindwara districts of Madhya Pradesh at an investment of Rs 3.84 crore.

The proposed initiatives is expected to benefit 53,000 people through 5,300 self-help groups across eight states.

The other five EPCs are in the process of finalising their projects reports, an official statement said here.

UNI CS PKS KP1503