India: Khadi Reform and Development Program

Sovereign Project | 42151-013 Status: Active

Summary

ADB is helping India revive the khadi industry and boost employment. The project will support policy and institutional reforms to promote the making of the widely revered handspun and handwoven cloth. It will establish a "khadi mark" to indicate the product is genuine and a marketing organization majority-owned by the private sector, and facilitate the purchase and processing of raw materials.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

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Procurement Documents

None currently available.


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Project Name Khadi Reform and Development Program
Project Number 42151-013
Country India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2452-IND: Khadi Reform and Development Program
Ordinary capital resources US$ 150.00 million
TA 7142-IND: Khadi Reform and Development Program
Japan Special Fund US$ 2.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Small and medium enterprise finance and leasing

Gender Equity and Mainstreaming Gender equity
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome The program is at an institutional level of implementation and yet to reach the artisan level.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues) The loan is for an amount of $150 million to be disbursed in 4 tranches. The first tranche worth $20 million was disbursed when the loan became effective in February 2010. Currently the loan is in its second tranche with $40 million yet to be disbursed. The second tranche release requires compliance with 31 conditions which is ongoing. The loan and associated TA were originally scheduled to close in September 2011. Both Loan and TA closing dates have been extended till 30 June 2016.
Geographical Location India

Summary of Environmental and Social Aspects

Environmental Aspects Likely to have minimal or no adverse environmental impacts.
Involuntary Resettlement Has no involuntary resettlement impacts. No further action is required.
Indigenous Peoples Not expected to have impacts on Indigenous Peoples. No further action is required.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

KVIC conducted two national level program dissemination workshops with 300 KIs in Delhi and Mumbai. The workshops were about key objectives and work streams under the program. Subsequently, there were state and division level workshops across the country.The KIs participated in their respective state and divisional workshops, where the work streams were discussed in detail. KVIC also conducted workshops with KIs earlier to factor in their views about MO and their readiness to associate with it. During the workshop, the KIs were briefed about Khadi Mark, public private partnership (PPP) in central sliver plants (CSPs) and in MO. KVIC has also organized workshops to get the inputs from KIs and prospective private parties towards structuring the PPP model for CSPs and MO.

KVIC has already initiated the process of organising KRDP implementation workshops in each of the six zones with participation from Khadi Institutions, KVIC state/divisional/zonal officials and KVIB officials. The purpose of these workshops is to disseminate the implementation process of various interventions under KRDP and to build the capacity of concerned Khadi Institutions and KVIC officials, to effectively guide the Khadi Institutions on implementation of KRDP interventions like Direct Reforms Assistance, Khadi Mark Implementation, Sliver Capacity Augmentation, Implementation of New Ventures amongst others. Training material is being developed to raise awareness on environmental aspects through dissemination programs. Regarding gender elements, a curriculum is being developed by KVIC for gender mainstreaming and trainings promoting financial literacy for the Khadi women artisans are being finalized. A workshop was held in January 2015 with participation from KVIC officials and KI staff from the states to build awareness on the gender mainstreaming aspects.

Business Opportunities

Consulting Services Not applicable. Consulting services support is captured under an associated TA (TA 7142-IND, Capacity Buidling for Reforming the Khadi & Village Industry Subsector).
Procurement Not applicable. Procurement towards consultant support to EA and IA is under a associated TA (TA 7142-IND, Capacity Buidling for Reforming the Khadi & Village Industry Subsector).

Responsible Staff

Responsible ADB Officer Vikram Annamraju
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Ministry of Micro, Small and Medium Enterprises
Mr. Sesh Kumar Pulipaka
171, Udyog Bhawan, New Delhi-11011

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 07 Jul 2008
Last PDS Update 18 Mar 2016

Loan 2452-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 22 Dec 2009 02 Feb 2010 30 Sep 2011 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 150.50 Cumulative Contract Awards
ADB 150.00 02 Oct 2008 20.00 0.00 13%
Counterpart 0.50 Cumulative Disbursements
Cofinancing 0.00 02 Oct 2008 20.00 0.00 13%

TA 7142-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 22 Dec 2009 22 Dec 2009 30 Sep 2011 30 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 02 Oct 2008 1,317,667.97
Title Document Type Document Date
Khadi Reform and Development Program Progress Reports on Tranche Releases Jan 2010
Loan Agreement for Khadi Reform and Development Program between India and ADB dated 22 Dec 2009 Loan Agreement (Ordinary Resources) Dec 2009
Program Agreement for Khadi Reform and Development Program between ADB and Khadi and Village Industries Commission dated 22 Dec 2009 Project/Program Agreement Dec 2009
Khadi Reform and Development Program Reports and Recommendations of the President Sep 2008
Khadi Reform and Development Program Design and Monitoring Frameworks Jul 2008

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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