India’s Ministry of micro, small and medium enterprises (MSME) recently approved a proposal by the Khadi and Village Industries Commission (KVIC) to raise the wages of khadi artisans by over 36 per cent, from the earlier Rs. 5.50 per hank to Rs. 7.50 per hank and paying government subsidy related to modified market development assistance (MMDA). The benefits are effective from August 15, a reported citing a KVIC statement. Under MMDA, 30 per cent of the prime cost is paid to the khadi institutions as production subsidy, out of which 40 per cent goes to artisans as wage incentives and the rest to the khadi institutions. The wage incentives are received by the artisans in their bank accounts through direct benefits transfer. According to KVIC Chairman VK Saxena, the wage enhancement will attract youth towards spinning as a profession.

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