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THIRUVANANTHAPURAM: The State Minister for Rural Development, Mr C.F. Thomas, has said that a sum of Rs 2 crore has been included in the demand for supplementary grants for payout of arrears in Khadi rebate.

The State Government has been allocating a 10 per cent rebate since 1995 with a view to boosting the retail sales of Khadi. This is over and above the 10 per cent rebate announced by the Centre.

The rebate is routed through the Khadi Village Industries Board. The annual payout amounts to Rs 2.50 crore, the Minister added. Drying up of working capital sources has adversely hit the functioning of the Khadi units in the State. A decision to disburse part of arrears in rebate was taken in this context.

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