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Modified MDA (MMDA) shall be allowed @ 30% on the
Prime cost of Khadi (cotton, silk, woollen) and Polyvastra
This
scheme shall come into effect from 3rdQuarter of the financial year 2016-17.
The KIs must submit their 3rdQuarter claims under this scheme in the 1st week
of January 2017 through online DBT software being used for filing MDA claims.
Elucidations to the guidelines are given below:
i.
The existing MDA Scheme has been modified and termed as Modified MDA (MMDA).
The modified MDA shall be calculated at 30%of the prime cost. The Prime Cost
for the purpose of calculation of MMDA shall include cost of raw material plus
conversion charges up to grey cloth plus processing charges without margin, as
specified in the cost chart. It does not include establishment margin, trade
margin, insurance, and bank interest.
ii.
Under the Modified MDA, the cost chart is to be reckoned for the purpose of
claiming MMDA which is a Govt.subsidy and the pricing of Khadi and Polyvastrais
fully delinked from the cost chart and products can be sold at market-linked
prices at all stages of production. Incentives would be extended to Artisans
and Karyakartas. The production and marketing support for products, which are
self-sustainable, will be gradually phased out.
iii.
Under MMDA scheme, the karyakartas shall cover artisans who are engaged in the
preprocessing activities of spinning and weaving and processing of Khadi and
Polyvastra such as dyeing, workers of Khadi Institutions working in production
centers.
iv.
Khadi Institutions undertaking production as well as sales activity shall be
entitled for 60% of MMDA on Prime Cost. Out of remaining 40% MMDA, 30% shall be
distributed to spinners and weavers and 10% to karyakartas/other artisans.as
mentioned at point no. iii. above. The producing institutions while effecting
whole sales shall pass on 20% of MMDA to purchasing institutions through whole
sale invoice and the selling institutions shall utilize the same for the
purpose as detailed in the enclosed a.M. at Para 3A(II) and furnish D.C.
v.
PeriodicityofMMDA Claims Producing institutions shall submit quarterly claims
of MMDA on prime cost for the production achieved during the preceding quarter
within 15 days of completion of the quarter through online MDA processing
system of KVIC. The claims not submitted in time will be forfeited and returned
to Khadi and Polyvastra Institutions.
vi.
Settlement of claims All claims received by State Divisional Directors shall be
processed for release of MMDA on daily basis and recommendation to Directorate
of Khadi through online MDA processing system of KVlC for release of MMDA
payment should be completed within 7 working days.
vii.
Furnishing of Utilization Certificate:
The
Khadi institutions availing MMDA will be bound to furnish utilization
certificate annually as rendered by registered Chartered Accountants (CA),
clearly indicating registration number and address of the CA. The format of
utilization certificate, guidelines etc. will be circulated from time to time
by KVIC. CAs while furnishing he utilization certificate for MMDA, are expected
to report on financial propriety, compliance to Rules, Regulations, Guidelines,
financial sanctions issued by KVIC, recommendation of State Level Budget Team
of KVIC, etc. and to satisfy themselves as to existence of infrastructure -
charkhas, looms, artisans, availability of raw material, appropriate
application of utilization of MMDA on areas agreed etc. and only after being
satisfied on these points will authenticate the utilization certificates.
viii.
Period of utilization of MMDA
Utilization
of MMDA for certain purposes such as modernization, renovation, research and
development etc. may take a period of more than one year. In such cases, the
Khadi and Polyvastra Institutions will be allowed to spend MMDA up to two years
from the date of actual receipt with specific sanction from KVIC. In order to
manage the MMDA amount effectively, it will be mandatory on the part of the
institutions to maintain a separate bank account, which will be subject to
verification by KVIC
ix.
Test Check/test Audit and Monitoring of MMDA on Production
KVIC
shall conduct test audit! check of MMDA claims through its Audit Teams, in
respect of all the institutions availing MMDA. The KVIC will reserve its right
for such test audit / check and in case of any mis-utilization, it may order
for complete audit of accounts of the Khadi Institution /Khadi &Village
Industries Boards. The MMDA claims will also be open for 'internal audit' by
the Chief Controller of Accounts (CCA) of the Ministry of MSME. As the funds
for MMDA would be extended from public funds, the office of Controller and
Audit General of India will have the right of conducting audit / test check or
otherwise as decided by that office.
x.
Dispute Settlement in transfer of MMDA
In case of non-transfer or improper transfer of MMDA by the producing institutions to other stake holders especially the selling institution, the stake holder should bring such transactions immediately (within one month of transaction) to the notice of State and Divisional Directors of KVIC who will direct the producing institutions to transfer the eligible portion of MMDA forthwith. In case the khadi producing institution is not abiding by the directives of KVIC, State Divisional Directors will deduct the amount from the claim of the khadi producing institutions and remit to the stakeholders selling institutions. No penalty will be charged for first transaction and for subsequent transactions, the State/ Divisional Director will arrange recovery of eligible MMDA amount along with 5% interest calculated from the date of transaction and pay to selling institution.
Objective:
(i)
To encourage Small & Micro exporters in
their efforts at tapping and developing overseas markets.
(ii)
To increase participation of representatives of
small/ micro manufacturing enterprises under MSME India stall at International
Trade Fairs/ Exhibitions.
(iii)
(iii) To enhance export from the small/ micro
manufacturing enterprises
(iv)
(iv) To popularize the adoption of Bar Coding on
a large scale.
Eligibility
criteria
i)
Unit having valid permanent registration with
Directorate of Industries/ District Industries Centre.
ii)
ii) The selection of small/ micro manufacturing
units would be done by MSMEDIs as per display product profile, theme of the
fair and space availability.
iii)
Micro & Small manufacturing enterprise can
avail this facility only once a year
iv)
Only one
person of the participating unit would be eligible for subsidy on air fare.
v)
The participating units under MSME India stall
at International Trade Fairs/ Exhibitions has to pay 50% of space rental
charges of booked space (min. 6 sq.mtr.) by enterprises of General categories
through MSME-DIs by a DD favouring PAO (MSME), New Delhi at least one month
advance of the commencement of the event. In addition to this, selected units
can book more space in multiple of 1x3 sq.mtr. on pro-rata basis and make
payment accordingly. However, Women, SC&ST entrepreneurs &
entrepreneurs from North Eastern Region need not to pay space rental charges.
vi) The representatives of the
participating units are required to carry and manage the samples (to and fro
including custom clearance etc.) for display under MSME India stall at the
International Trade Fairs / Exhibitions.