Jaipur: In order to fillip the sale of Khadi clothes and products, the Union Micro, Small and Medium Enterprises (MSME) Ministry is contemplating on handing over the Khadi outlets to private companies. The move is being initiated to popularise Khadi and modernise the various outlets spread across the country.

Under the prevailing scenario, the Centre can opt for Public Private Partnership (PPP) for handling the retail trade of Khadi products via Khadi and Village Industries Commission (KVIC). 

Sources in the MSME Ministry said, the Expression of Interests (EOI) have been sought from the private companies. In response, several private houses have sent their EOIs to the Ministry.

Sources further maintained that plans are afoot to form a PPP marketing organisation to boost the sale of Khadi products. This organisation will cooperate with the manufacturers of Khadi products in coming up with trends and designs which are in sync with the present generation.

Secretary of Rajasthan State Khadi Board Sushma Arora said the private Companies are being linked to KVIC to provide modern look to the existing Khadi outlets. The private companies which will be finalised by the ministry will work on the basis of Built Operate Transfer (BOT) model.

Initially, the outlets will be handed over to the private companies for a period of 15 years. Thereafter, they will be returned back to the Khadi and Village Industry Department.
In an effort to provide financial aid to the private companies, the Centre will also grant them loans.

Out of the 1,200 institutional sales outlets of Khadi, 300 would be given a facelift in 2011-12. For the purpose, the ministry would spend a whopping amount of Rs 143.40 crore. In addition, plans are in pipelines to open 20 new sales outlets during the ongoing financial year.