Khadi and Village Industries Commission (KVIC) is planning to collaborate with Exim Bank of India with an initial investment of Rs5 crore.
The Rs1crore of the funds for this project, which aims to boost KVIC's export potential, will be generated through equity, while the rest will be investment by financial institutions.
Sources say that within four years this investment will be nearly Rs100 crore. By then foreign contributors will also be invited.
Experts opine that this move is something that was necessary for KVIC as it is an organization that basically focuses on domestic market. This joint venture will help it to promote and enhance exports.
In 2004-05, KVIC's export earned around Rs39 crore and this is expected to touch Rs300 crore in the next five years.
KVIC has 7050 sales outlets, has its presence in 3 lakh villages and employs 82.77 lakh people.
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