Khadi rebate to be taken away soon

New Delhi, June 26 (UNI) The rebate on Khadi will soon be a thing of past.

The Government is formulating a new scheme to slowly phase out the existing rebate scheme of Khadi and Village Industries Commission (KVIC) and revitalise the sector to sustain on its own.

The scheme-- Marketing Development Assistance (MDA) for Khadi institutions-- has been mooted to provide assistance towards renovation, computerisation, marketing infrastructure development, quality improvement of products, and better packaging of Khadi products, Minister for Micro, Small and Medium Enterprises Mahabir Prasad said today.

Addressing the Consultative Committee attached to his Ministry, Mr Prasad said the Finance Ministry had been asked to provide the committed rebate on retail sales of Khadi this year.

Allaying fears that KVIC units were prone to sickness, Mr Prasad said his Ministry was processing a Rs 27.50 crore pilot scheme to assist 200 weak Khadi institutions.

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