BELLARY: The Khadi Gramodyog Sanghas in Bellary district have urged the State Government to announce 20 per cent rebate on retail sale of khadi throughout the year instead of the usual 15 per cent in the wake of the State celebrating "Suvarna Karnataka" this year. In a memorandum, representatives of the various sanghas drew the attention of the Government to the fact that Tamil Nadu had announced 20 per cent rebate. According to them, the Union Government had been announcing 20 per cent rebate, 10 per cent throughout the year and a special rebate of additional 10 per cent for a period of 108 days. Similarly, the State Government had also announced 5 per cent and 10 per cent rebate. The Union Government had announced the current year's rebate of 20 per cent coming into effect from April 12, 2006. The State Government was yet to make an announcement in this regard even after five months of the commencement of the financial year, they said. As a result, retail sales had dropped and all khadi units were facing a financial crisis. The Karnataka State Khadi and Gramodyog Board had submitted a proposal urging the Government to announce rebate for the current year. They urged the State Government to release the rebate amount announced for the previous year (2005-06) stating that the delay had resulted in shortage of their working capital and owing to failure of rain it was difficult for these units to provide employment throughout the year.

They have requested release of rebate amount for the previous year and for the current year . They have requested the Deputy Commissioner to take up the matter with the Government.

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