MDA/MMDA

The MDA (Marketing Development Assistance) scheme has been introduced in place of long existing Rebate scheme as an assistance to Artisans and Khadi Institutions.

Quantum

MDA is calculated on COST OF PROD. value but since 2017-18 a new scheme namely MMDA (Modified Marketing Development Assistance) has been introduced in place of MDA scheme on the strength of approval accorded by MSME&T Deptt. of W.B. vide memo no. 169/MSMET(v)/2k-09/15 dtd. 18.01.18.

MMDA is calculated on PRIME COST of Prod. value.

State Govt. share of MDA & MMDA are @ Rs. 10% & 15% respectively. All the Khadi producing Institutions having valid certificate are entitled to avail such benefit under this scheme.

BACKGROUND:

Khadi is handspun and hand woven cloth made by around a million traditional rural artisans. Handspun and hand woven characteristic is the Unique Selling Proposition of Khadi. Govt. of India has been providing MMDA @ 30% on the prime cost of production of Khadi in order to facilitate the product to compete with other textile product in the market.

Implementation of Modified Marketing Development Assistance (MMDA) scheme for Khadi & Polyvastra w.e.f 01/04/2017 in place of earlier MDA approved by MSSE & T Department, Govt. of West Bengal under the purview of WBKVIB.

MSSE & Department, Govt. of W.B with the concurrence of Finance (Audit) Department, Govt. of W.B has accorded approval for the introduction of Modified Market Development Assistance (MMDA) scheme with effect from 1-04-2017 in lieu of existing MDA by West Bengal Khadi & Village Industries Board in this State as per Govt. of India’s Circular No. DK/KC/Khadi/MPDA/Guidelines/16-17 dated. 26-12-2016 and guidelines laid down therewith issued by Directorate of Khadi Coordination, Khadi & Village Industries Commission subject to compliance of formalities laid down of the aforesaid Circular No. DKC/MDA-Policy/2010-11 dtd 16-04-10 of Govt. of India.

And the State Government accorded approval Vide No. 169-MSMET (V)/2K-09/15 dtd. 18-01-2018.

On the strength of the above noted order the WBKVIB has now decided to formulate and issue the brief Guidelines for giving immediate effect for introduction of Modified Market Development Assistance (MMDA) scheme on behalf of the MSME & T Department, Govt. of W.B w.e.f 01-04-2017.

The scheme has been effective from 1st April, 2017. The scheme will help Khadi Sector to reorient their activities extending adequate emphasis towards increasing artisans’ earnings as well as ensuring quality of Khadi to customers.

After introduction of MMDA from the end of KVIC, Govt. of India, the proposal for providing matching MMDA in the line of erstwhile MDA scheme to the certified Khadi Institutions/Societies in our state out of State Plan Resources and thereafter, the State Govt. has also decided to accept the proposal of the Board for Introduction of MMDA Scheme @ 15% on Prime Cost of production out of State Plan Resources.

The brief Guidelines in respect of above are now enunciate below for information and compliance for Certified Khadi Institutions/Societies, Offices of WBKVIB and KVIC in the State of West Bengal and others concerned.

All the payments by the Khadi Institution/Societies out of MMDA must be through Aadhar linked bank (RTGS/NEFT) a/c to its stakeholders.

RAW MATERIAL + PRODUCTION CHARGES (PROCESS WASTE, ARTISAN INCENTIVES/WELFARE) + WET PROCESSING (DYEING, PRINTING) = [PRIME COST]

WBKVIB ensures compliance with these components when settling MMDA claims for certified institutions/societies.

Definition: Assistance based on the Prime Cost of Khadi/polyvastra for eligible, certified institutions.

Rate: 15% on Prime Cost (Cotton, Silk, Wool, Polyvastra) up to the SFC-approved target.

Categories: Includes Producing, Selling, and Composite (producing/selling) Institutions.

WBKVIB audits MMDA claims, with potential for full audits upon mis-utilization, along with AG, West Bengal oversight.

Stakeholders must report non-transfer of funds (within one month) for intervention; CEO, WBKVIB acts as the appellate authority.