Union Micro, Small and Medium Enterprises Minister Dinsha J Patel today said a loan of Rs 725 crore ($150 million) has been approved by the Asian Development Bank to develop khadi industry in India.
"The first instalment of $20 million has been procured from ADB recently," he said at the closing ceremony of the 2nd National Khadi and Handicraft Mahotsav held here.
The MSME minister said ADB will release the money in four instalments over a period of three years.
The second instalment of $40 million will be released after eight months followed by the same amount after the completion of 13 months as the third instalment, sources said.
The last instalment of $50 million will be released after the completion of 36 months for khadi reform programme, he said.
A total of 300 organisations engaged in promotion and development of khadi, including six from Jharkhand, would be benefited, Patel said.
The union minister appealed the younger generation to use khadi clothes.