A flexible, growth stimulating and artisan oriented Market Development Assistance (MDA) scheme has been introduced in place of the erstwhile system of Rebate. Under the MDA, financial assistance is provided to institutions @ 20% of the value of production of Khadi and Polyvastra, to be shared among the artisans producing Institutions and selling Institutions in the ratio 25:30:45. MDA allows the Institutions flexibility to use the assistance for improving the outlets, products and production processes, besides giving incentive to customers, etc.
MDA shall be allowed @ 20% on cost of production of Khadi (cotton, silk, woollen) and Polyvastra to the extent of production target approved by the Standing Finance Committee (SFC) of KVIC for the year.
The Khadi institutions, having valid Khadi certificate and categorised as A+, A, B and C only are eligible to avail MDA grant from KVIC.
The total amount of MDA on production will be claimed by the producing Institution from the KVIC and will be distributed amongst the stakeholders viz., spinners and weavers, producing Institutions and selling Institutions in the ratio 25%, 30% and 45% respectively. Producing Institutions shall submit quarterly claim of MDA based on the actual production achieved during the preceding quarter of the financial year. The difference, if any, would be adjusted in the last quarter of the financial year on the basis of audited accounts by the Chartered Accountants. The MDA shall be preferably reimbursed electronically by the State/Divisional office of the KVIC on quarterly basis.
