MSME ministry asked to redraw rebate scheme for khadi industry
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The finance ministry has asked the micro, small and medium enterprises ministry to redraw its rebate scheme for khadi and village industries. MSME has asked for Rs 447 crore to spend on the market development assistance scheme under which a rebate is extended to the seller for selling khadi products. In addition, it has asked for a $150-million (Rs 700 crore) loan from the Asian Development Bank for the same.
"The finance ministry's view is that the ministry should approach the plan commission and not seek year-to-year extension of the scheme. Furthermore, it had asked the MSME ministry to redesign the scheme in a manner that it should benefit the artisan and not the seller, which was the case so far," a senior government official said.
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