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Saturday, April 17, 1999

Govt caught napping on KVIC grants issue

EXPRESS NEWS SERVICE  
MUMBAI, APRIL 16: In a rare occurrence in the State Legislature, Council chairperson Professor N S Pharande today withheld a calling attention motion on the release of grants to the Maharashtra State Khadi Village Industries Corporation (MSKVIC), as the government failed to provide satisfactory replies to questions raised by the members.

Vyankappa Patki, Gangadhar Patane, Rajani Satav and others had given notice for a calling attention motion, asking if the government had released grants to organisations affiliated to the MSKVIC according to the prescribed rules.

The government, with a view to promoting village industries and helping them market their products, gives rebates to these organisations so that the products can be sold at low rates. The government also pays some part of the employees' salaries.

Janata Dal member Vyankappa Patki raised the query soon after the question hour was over.

``On one hand, the government is promoting swadeshi products and has announced rebates on various products ofthe Corporation. However, the grant is not released at regular intervals,'' he said. More often than not, he alleged, it was disrupted and delayed.

Congress member Rajani Satav was more critical. ``I have specific information about organisations which have not received grants for several months. This has resulted in the employees not getting their salaries; they are now planning to go on a strike,'' she informed the House.

``This is a question of survival of the entire village industry in Maharashtra. What action the government has initiated to help them?''

The volley of questions caught Minister of State for Employment and Self Employment Raj Purohit off guard. ``The situation of the village industries is not as bad as is being portrayed by the members,'' he said in a bid to reassure the House.

``The government is punctual as far as releasing the grant is concerned. However, if there is any delay in a specific case, money will be released at the earliest,'' he said.

The government, he added, wasready to disburse loans for new businesses in fields related to village development. The beneficiary will have to invest ten per cent amount of the project cost, while 25 per cent of the amount will be given by the Khadi Village Industries Commission (KVIC). The rest of the amount will be given as a loan, the minister said.

At this point, Satav, pointed out that around 8,000 employees attached to the Marathwada Khadi Gramodyog Organisation had not received their salaries for more than six months. ``Products worth Rs 8 lakh are lying unsold,'' she alleged. ``Is the government ready to purchase these products?''

Purohit said he was unaware of the situation and that he would seek more information on the matter.

The members then requested Pharande to withhold the calling attention motion. Pharande directed the minister to provide the necessary information to the House at the earliest and declared the motion withheld until the government came up with the answers.

Copyright © 1999 Indian ExpressNewspapers (Bombay) Ltd.


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