Government of India approves a proposal by Khadi and Village Industries Commission (KVIC) to increase wages of artisans

The Ministry of Micro, Small & Medium Enterprises (MSME) has approved a proposal by the Khadi and Village Industries Commission (KVIC) to increase the wages of artisans by over 36%, from Rs 5.50 per hank previously to Rs 7.50 per hank. The proposal for an increase in wages to khadi spinners along with payment of government subsidy — Modified Market Development Assistance (MMDA) — has been approved with effect from August 15, 2018. Under the MMDA programme, 30% of the prime cost is paid to the khadi institutions as production subsidy. Of this 30%, 40% goes to artisans as wage incentives and the remaining 60% goes to the khadi institutions. The wage incentives are paid by KVIC directly to the accounts of the artisans through direct benefit transfer. As a result, if an artisan makes 20 hanks in a day — he will get Rs 150 per day as wage at the rate of Rs 7.50 per hank, plus incentives including MMDA, which would be approximately 35% on Rs 150, that is Rs 52.