I. THE MARKET DEVELOPMENT ASSISTANCE (MDA) ON PRODUCTION SCHEME
Khadi is handspun and hand woven cloth made by around a million traditional rural artisans. Handspun and hand woven characteristic is the unique selling proposition of Khadi. Govt. of India has been providing sales promotional assistance, popularly known as rebate on the retail sale value of khadi in order to facilitate the product to compete with other textile products in the market. The rebate scheme provides discount on khadi and polyvastra at retail point. It has two components viz. Normal and Special. Normal rebate is extended at a flat rate of 10% throughout the year on khadi items except reeled silk. Special rebate is extended at a rate of 10% on all khadi items for 108 days, coinciding with local festivals, in a year in addition to normal rebate. The rebate scheme has been studied by several committees to assess its effectiveness in increasing sale of khadi. Based on the recommendations of these Committees, Govt. of India decided to introduce the scheme of Market Development Assistance on Production in place of rebate after experimenting with several pilot schemes. The scheme has become effective from 1st April 2010. The scheme is aimed to help Khadi sector to reorient their activities extending adequate emphasis towards increasing artisans' earnings as well as ensuring quality of khadi to customers.
II. Guidelines On Prime Minister’s Employment Generation Programme (PMEGP)
About the Scheme
Government of India has approved the introduction of a new creditlinked subsidy programme called Prime Minister’s Employment GenerationProgramme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector