Possible increase in outlay for khadi sector to benefit SMEs

SMEs in the khadi sector can now expect more finances coming their way with an expected increase in the total outlay for the sector by approximately Rs 377 crore in 2010-11 as compared to 2008-09. This was revealed by Dinsha Patel, minister of state for MSMEs, on the sidelines of a meeting held recently with representatives of selected khadi institutions to obtain their views on improving efficiency and productivity of the sector.

To spur growth of the sector several initiatives have been undertaken by the MSME Ministry. Some of them are improving infrastructure for certain khadi institutions and providing fund worth US$150 million under the Khadi Reforms Programme aided by the Asian Development Bank, among others. In this context, Kamal Goel, proprietor of Goel Enterprises, a small-sized khadi dealer in Kolkata, says, "With improvement in infrastructure, it has become easier for khadi dealers to undertake bulk consignments, which in turn will help in boosting the revenues of the sector."

Some of the important suggestions given to Mr Patel to improve the sector were providing more autonomy to the khadi institutions, developing innovative marketing skills, ensuring welfare of artisans etc. "A major chunk of the workforce involved in the sector still do not enjoy decent standard of living, thereby requiring the government to take steps in this regard," comments Ajit Dhingra, proprietor of Dhingra Garments, a small-sized dealer of khadi garments in Ludhiana.

Mr Patel assured all the participants that their suggestions will be looked into and steps will be taken to further boost the sector.

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