KVIC Inks Landmark Agreement With ONGC

KVIC Inks Landmark Agreement With ONGC
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The Oil and Natural Gas Commission (ONGC) usually distributes annual bonuses to its employees in the form of cash, recognizing their services to the nation and rewarding their hardwork.  This year, an agreement has been reached with the Khadi and Village Industries Commission (KVIC), under which while the staff bonus gains an additional value, the mechanism itself contributes to a wider public good.

NEW DELHI: Mr. V.K. Saxena,Chairman of KVIC said that his negotiations have led to ONGC deciding to reward its employees in kind, at a value that is over three fold higher than the cash value.  Under the scheme, the ONGC will provide Khadi vouchers worth Rs. 10,000 each to its regular employees and Rs. 5,000 each to its non-regular employees.  The KVIC will allow an additional 35% incentive on these vouchers, thus enhancing the value of ONGC bonus to 135% of its cash value for its staff.  These Khadi vouchers can be used by ONGC staff over a period of 2 months.

ONGC has 34,236 regular employees and 1,063 non-regular employees totally 35299. As a result, KVIC will get Rs.35 Crore payment from ONGC due to this initiative.     Considering 35% additional supplement by kvic, the total sale of KVIC products will  be about Rs. 47 crores over a period of 2 months in which @ 22%,  i.e Rs 10 Cr will be the wages.  Saxena said that the  Artisans attached to this special sales drive  will be given an additional 5% reward directly in their accounts through DBT.

KVIC will provide best quality Khadi products through 16 special exhibitions within the ONGC premises, so that the ONGC employees would get the products at their doorsteps. KVIC has also decided that the local Khadi Institutions and PMEGP units of the relevant area will be roped in to showcase their best products in these exhibitions, thereby spreading the benefits to local artisans. Efforts would also be made to ensure that 70-80 per cent of the sale would be of readymade garments, with special focus on women and children of the employees.

The first such exhibitions will start from 16 January 2017 from Mehsana in Gujarat and will cover ONGC  Locations at Ahmadabad, Baroda, Ankleshwar, Hazira, and Cambay Basin up to 14th Feb 2017 .ONGC has highest numbers of employees  i.e 11,081 in Gujarat. Similarly , in Maharashtra, the ONGC has 6,783 employees and exhibitions will simultaneously start from 16 January to 28th February 2017 at various locations. KVIC has prepared a calendar for exhibitions in Andhra Pradesh, Pondicherry, Tripura, Tamil Nadu, West Bangal, Jharkhand and Goa in consultation with ONGC and formulated 4 teams to start exhibitions simultaneously in 4 places.

Besides the tripartite benefit – sales to KVIC, value for money for employees and staff goodwill to ONGC, the agreement will prove to be a unique model that helps in the sustainable development of rural artisanal communities.  Apart from higher productivity, the rural communities will also earn more and sustain a better quality of life.  KVIC, though this unique partnership will also generate 6.50 Lakhs extra man days for its Khadi artisans, increasing employment opportunities.

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