KVIC, Tribal Affairs Ministry to ink pacts aimed at procurement of Khadi fabric, job creation

The Khadi and Village Industries Commission and the Ministry of Tribal Affairs will sign two agreements on Tuesday for procurement of Khadi fabric for tribal students and for creating local employment for a large chunk of tribal population across the country.

While one memorandum of understanding (MoU) is for the purchase of Khadi fabric for tribal students, the other MoU is on partnering of the Tribal Affairs Ministry with the Khadi and Village Industries Commission (KVIC) as an implementing agency for the Prime Minister Employment Generation Program (PMEGP).

As part of the first MoU, the Ministry of Tribal Affairs will procure over 6 lakh meters of Khadi fabric worth Rs 14.77 crore in 2020-21, for the students in Eklavya Residential Schools being run by the ministry.

''As the government increases the number of Eklavya Schools every year; the quantum of purchase of Khadi fabric shall also increase proportionally,'' the Micro, Small and Medium Enterprises Ministry said.

Under the second MoU, National Scheduled Tribe Finance Development Corporation (NSTFDC), an agency of the Tribal Affairs Ministry responsible for economic development of tribals in India, will be roped in as a partner to implement the PMEGP Scheme.

NSTFDC provides concessional loan schemes for funding entrepreneurial ventures of aspiring scheduled tribes (STs) in all sectors of economy.

''The MoU will thus benefit the tribals by engaging them in various production activities and creating self-employment opportunities. The alliance of NSTFDC and KVIC will increase the coverage of the PMEGP Scheme among the STs,'' the Ministry said.

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