ADB grants $150-million loan for India’s khadi reforms
December 23, 2009
The Indian government has signed a loan agreement with the Asian Development Bank (ADB) under which the multilateral funding agency will provide $150 million (Rs717 crore) for developments and reform of about 300 khadi institutions across the country.
This loan is expected to benefit around 60,000 artisans who in turn will allow khadi institutions to sell their products at market-determined prices. The artisans will be directly benefited by this programme and the setting up of a marketing organisation will also help in improvement in the sales of khadi products in the country.
Under the agreement, ADB will provide the loan to State-run India Infrastructure Finance Co Ltd (IIFCL) in four tranches.
During FY09, the khadi and village industry employed around 1.03 crore people with a production value of Rs1,733.90 crore.