Marketing Promotion and Development Assistance Scheme (MPDA)

The Ministry of MSME implemented Marketing Promotion and Development Assistance Scheme for khadi and village industry. Accordingly, it focuses on the marketing and promotional activities of the MSME sector of the khadi industry. Further, the Marketing Development Assistance (MDA) scheme has undergone few alignments to form the scheme.

Consequently, the Ministry of MSME sanctioned Rs 977.05 crores for the MPDA scheme. Out of which, 30% for the Production institute, 45% for selling institutes, 25% for entrepreneurs are distributed. Thus, this scheme will help entrepreneurs achieve financial freedom.

Objectives of Marketing Promotion and Development Assistance Scheme

1. To assist the marketing ventures of Khadi enterprises.
2. Financial aid and accurate disbursement of the same for Khadi units.
3. Permit market compartmentalization for products from Khadi and Village establishments.
4. Encourage awareness programs, exhibitions, training, and workshops.
5. Increase the demand for the products.
6. Aid in infrastructural development of the Khadi and Village Industry units.

Salient Features of the MPDA Scheme 

1. It is mandatory to submit quarterly claims within 15 days of completion. Further, this submission must be online in the MDA Processing System of KVIC.
2. No assistance for late submissions.
3. If the applicant submits the claim to State or Divisional director, he/she shall process it to Directorate of Khadi for subsidy.
4. Following verification, the letter will reach the Directorate within 7 working days.
5. The Directorate will process the same in 5 days.
6. The calculation of aid is 30% of the cost (raw materials).
7. It is an obligation to submit the Utilisation Certificate (UC) authorized by a Chartered Accountant (CA).
8. The transfers are usually via Debit Transfer System (separate bank accounts).

Nature of Assistance 

Marketing Promotion and Development Assistance scheme will provide 30% on the cost of Khadi and Polyvastra. Further, the benefits offered by the MPDA scheme are as follows:

Production Institutions 

1. Involved in the improvement of manufacturing and quality of the Khadi products.
2. To improve the technology and infrastructure.
3. Setting up Common Facility Centres (CFCs).
4. Furthermore, advice on the latest trends to inculcate the same.

Selling institutions 

1. Mainly aid in sales and promotional events of the khadi units.
2. Sales unit refurbishment.
3. Further, keeping up with the technology that will enhance the sales.
4. To employ professionals that prove valuable in marketing the products in both digitals as well as print media.
5. Inculcate e-commerce, franchisees and so on to observe a spike in sales.

Entrepreneurs 

1. Assist by initiating Aadhar linked bank or post office account which will receive the financial aid.
2. Most importantly, to increase the production.
3. Additionally, to achieve the target in sales.
4. Help to engage regularly with Khadi industry activities such as spinning, dyeing, and weaving.

Marketing and Promotion 

1. Reinstall the sales unit.
2. Construct attractive Khadi plazas.
3. Encourage participation in International trade fairs and exhibition.
4. Establish and strengthen connections with dealers.

Note: the charges for stall rent, accommodation, and travel during participation in global fair will be covered under the scheme

Eligibility 

Any Khadi industry with a valid Khadi certificate from KVIC is eligible to avail of the benefits of the scheme. However, they must be in one of the A+, A, B or C categories.

Application Protocol

The producing institute under KVIC will receive the total amount from the MPDA scheme. Following that, it will distribute the same among its stockholders. Accordingly, the stockholders could be spinners, weavers, producing institutes, selling institutes. Further, Spinner and weavers will receive 40% while the production and selling will receive 20% and 40% respectively. Moreover, the producing institute is in charge of submitting the quarterly claims. Further, the claim must not be at fault and also must be audited by the CA. Subsequently, the state or divisional office will begin the reimbursement process every quarter.

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