Govt depts must make 20 pc handloom purchase from KVIC, registered weavers: Fin Min

PTI, Mar 2, 2020, 10:05 AM IST

New Delhi: In order to boost the khadi industry, the finance ministry has asked all government departments to mandatorily buy at least 20 per cent of their textiles requirement from KVIC, handloom clusters and registered weavers.

In order to implement this change, the Ministry of Finance has amended Rule 153 of General Financial Rules (GFR) 2017.

Till now, the central government had reserved all items of hand-spun and hand-woven textiles (khadi goods) for exclusive purchase from Khadi Village and Industries Commission (KVIC).

As per the amended rule, “of all items of textiles required by the central government departments, it shall be mandatory to make procurement of at least 20 per cent, from amongst items of handloom origin, for exclusive purchase from KVIC and/ or handloom clusters”.

The handloom clusters include co-operative societies, self-help group federations, joint liability group, producer companies, corporations including weavers having ‘pehchan cards,’ said a recent circular from the Ministry of Finance, Department of Expenditure Procurement Policy Division (PPD).

In the Union Budget presented to Parliament on February 1, Finance Minister Nirmala Sitharaman had increased the allocation for ‘khadi, village and coir industries’ to Rs 1,525.94 crore for the next fiscal.