Aadhaar helps govt save over Rs. 1.5 bn in subsidy payment to khadi artisans

Aadhaar-based payment of subsidies to khadi artisans has reduced the number of “ghost accounts” and saved the government over Rs 1.5 billion, the Khadi and Village Industries Commission (KVIC) has said.

After implementation of the Aadhar-seeded payment of the Marketing Development Assistance (MDA) or subsidy directly to the bank accounts of the Khadi artisans and craftsmen, the KVIC has so far saved over Rs 1.53 billion worth of public money in the 2015-16 and 2017-18 fiscals, a press note of the commission said. With the cleansing of the records, nearly 503 institutions have stopped claiming subsidies for non-existent artisans, it said.

“KVIC has entered the new digital era on March 1 this year with the implementation of the Integrated Financial Management System (IFMS)… (it) enables real-time transaction accounting, budgetary control and reconciliation systems, connecting all its field offices,” the release quoted Minister of Micro, Small and Medium Enterprises Giriraj Singh as saying.

“In 2015-16, MDA of around Rs 316 crore (3.16 billion) was claimed and given to 1,918 Khadi institutions. After the implementation of online Direct Benefit Transfer (DBT) system through Aadhar-seeded bank accounts in January 2016, the MDA amount was reduced to Rs 172 crore (1.72 billion) for 1,759 institutions in the next fiscal 2016-17. In the present fiscal 2017-18, the KVIC has disbursed Rs 163 crore (1.63 billion) among 1,413 institutions,” it said. (PTI)