Objectives

The MMDAaims for technology up gradation, engaging design consultants for developing the new products, value addition by adopting latest technologies in the post fabric stage/process, modernization &computerization of sales outlets, introduction of mobile sales van, engaging external marketing consultants, extension of sales discount, capacity building of the sales personnel and incentives to artisans & Karyakartas thereby improving production & sale of Khadi.

Benifits

Reorienting the activities of Khadi Institutions ensuring quality of Khadi to customers as well as extending adequate emphasis towards increasing artisans' earnings.

Eligibility

Khadi Institutions, Spinners and Weavers

Loan Amount

• 30% is provided as grant on Prime Cost of Khadi & Polyvastra including cost of raw material plus conversion charges up to grey cloth plus processing charges without margins, as specified in the Cost Chart.
• Khadi Institutions undertaking production as well as sales activity shall be entitled for 60% of MMDA (40% for production and 20% for sales), the remaining 30% shall be distributed to Spinners & Weavers and 10% to Karyakartas / other Artisans.

Financial Assistance

1.     Modified Market Development Assistance (MMDA) for Cotton/Muslin, Wool and Polyvastra shall be calculated @ 35% on Prime Cost (cost of raw material + conversion charges up to grey cloth + processing charges), excluding margin [establishment expenditure (25%)· and trading (3%), insurance (1%) & bank interest (4%)].

2.     Modified Market Development Assistance (MMDA)for Silk Khadi shall be calculated @ 20% on Prime Cost (cost of raw material + conversion charges up to grey cloth + processing charges), excluding margin [establishment expenditure (25%) and trading (3%), insurance (1%) & bank interest (4%)].

3.     Production of Khadi and Polyvastra products for the purpose of Government supplies under Rate Contract (RC)to be made against the wholesale target approved by Standing Finance Committee (SFC) are not eligible for MMDA. However, only artisans and Karyakartas of those KIs engaged in production and supply in Govt. supply / Rate Contract will be eligible for MMDAincentive @ 17.15% on prime cost. (35-;-100x49). 5

4.     The MMDAwill be paid on Prime Cost of regulated Cost Chart mechanism. Sale price of Khadi and Khadi products fully de-linked from the regulated cost chart mechanism and Khadi products can be sold at market linked prices.

5.     The MMDAwill be released on quarterly basis to KIs as per the approved target through online portal.

Quantum of incentive to Artisans and Karyakarta s

1.     35% of total MMDA amount shall be passed on to the spinners & weavers and 14% of total MMDAshall be passed on to Karyakartas engaged in the production/ sales activities of Cotton, Woolen, & Polyvastrain the form of incentive or bonus through their bank/ post office accounts.

2.     30% of total MMDA amount shall be passed on to the reelers/ twister / winders & weavers and 10% of total MMDAshall be passed on to 'Karyakartas or maximum ceiling of Rs. 10,000/- per quarter per Karyakartha, whichever is less under Silk Khadi, in the form of incentive or bonus through their bank/ post office accounts.

3.     The incentives of the Artisans as well as Karyakartas are to be paid through Aadhar seeded bank / post office accounts only through Direct Benefit Transfer (DBT) by Khadi and Village Industries Commission.