18 of 92 Khadi units operational

17 August 2023, Mumbai

CAG audit finds

The Comptroller and Auditor General of India (CAG) has raised concerns about the operational status of the Khadi and Village Industries Commission (KVIC), indicating that only 18 out of the 92 departmental trading units are currently active.

The audit focused on evaluating the performance of the 18 active units and their supply chain management during the period from 2017-18 to 2020-21. It also conducted a comprehensive review of 25 non-operational departmental trading units to ascertain the underlying reasons for their closure and the subsequent impacts.

Nuances

The report highlighted that the KVIC has not conducted any analysis to identify the factors contributing to the closure of these units. It also noted that more proactive efforts by the KVIC could have potentially averted the shutdown of these units.

The report also noted that two departmental trading units were identified as having the potential for generating revenue through unauthorized sales of Khadi products by private entities.

'Vocal for Local'

This indicated a potential avenue for revenue generation through these departmental trading units.

The findings of the CAG audit come at a significant juncture when the government has been actively promoting indigenous products through initiatives like 'Vocal for Local', 'Khadi for Nation', and 'Khadi for Fashion'.

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