India seeks Rs 7.5 bn loan from ADB to boost Khadi

The Indian government has sought Rs 7.5 billion

loan from the Asian Development Bank (ADB) to revitalize and modernize the domestic Khadi industry, Union Minister of State for Micro, Small and Medium Enterprises (MSMEs) K H Muniyappa has said. Talking to media on the sidelines of a meeting with representatives of trade bodies and industrial units, the Minister said the centre wants to technically upgrade the Khadi manufacturing units by replacing the old outdated machinery with new latest ones.

The Centre has earmarked Rs 240 billion for the MSME sector in the 12th Five Year Plan, which is almost double the amount earmarked for the sector under the 11th plan, he added. He said the government has taken several steps to ensure effective implementation of the Prime Minister’s Employment Generation Programme in all districts of Karnataka state, to help those willing to set up a small or cottage industry in the state to obtain a loan of up to Rs. 2.5 million.

The Ministry of MSMEs has also agreed to offer 20 per cent rebate on Khadi goods under the Marketing Development Assistance scheme, so as to push sales of Khadi items, Muniyappa said.