Taking serious notes of the low profitability of the Khadi Institutions (KIs) due to the low remuneration paid to its office bearers, the KVIC has decided to increase their salary/remuneration linking with the turnover/sales performance of each KI from January. This would benefit secretaries and chairman of the KIs.
Giving this information, KVIC chairman VK Saxena said that at present, except few Khadi Institutions, most of them pay very meager amount of remuneration to its office bearers — ranging from Rs 5,000 to Rs 10,000 per month. “It was the need of the hour to connect their salary/remuneration with the sales performance of their respective KIs. It will act as a morale booster for them to work hard for an overall improvement of the institutions,” he said.
He went on to add, “Most of the profitability is blocked in the form of large inventories and sundry debtors. low remuneration also open ways for the office bearers to use unfair means to earn extra money from the KIs, to meet out their house hold expenditure.”
Not only that, it would also encourage everyone from artisan to office bearers to give their best to increase their income and consequently increasing the employment opportunities.
The KVIC Chairman further informed that this issue was discussed on many occasions at various forms including with the Minister of MSME Shri Giriraj Singh and it was unanimously proposed to give proper increase in their monthly remuneration of secretaries and chairmen of KIs.
“The monthly remuneration proposed varies from Rs 15,000 to Rs 90,000 per month with respect to the turnover of the Khadi Institutions ranging from Rs 50 lakh to Rs 5 crores and above. The institutions with lower turnover will now enthusiastically approach to make it doubled or tripled as it would directly proportional to their performance. Similarly, the federation members agreed that value addition in the products will not affect the pricing in any manner,” Saxena added.
Similarly members of the board of Khadi institutions will also get Rs 1,000 per sitting, which has also been started for the very first time.
There are altogether 2,600 KIs, of which number of institutions having annual turnover of less than Rs 50 lakh and between Rs 50 lakh and Rs 1 crore are 1,274 and 388 respectively. With this moral boosting remuneration bonanza, it is all set that in the coming years; almost 50 percent institutions would try to achieve the higher circuit, which would automatically increase the turnover of the Khadi to a new high.