K.V.I.C.

KHADI & VILLAGE INDUSTRIES COMMISSION

( Ministry of Micro, Small and Medium Enterprises)

Presented by: Prakash Chandola

KHADI (brand ambassador): Mahatma Gandhi

Khadi refers to handspun and hand-woven cloth and the raw materials may be cotton, silk, or wool, which are spun into threads.

Khadi was launched in 1920 as a political weapon in the

Swadeshi movement of Mahatma Gandhi.

Khadi is sourced from different parts of India like West Bengal, Bihar, Orissa, Andhra Pradesh, Uttar Pradesh, Bihar ,West Bengal , Gujarat, Himachal Pradesh etc.

Village Industry

Any industry located in a rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed [one lakh rupees] or such other sum as may, by notification in the Official Gazette, be specified from time to time by the Central Government.

Relevance of Khadi and village industryBoth are labor intensive in nature and we are

labor surplus country.Required little capital to set up.

KHADI AND VILLAGE INDUSTRIES COMMISSION

KVIC is a statutory body formed by the Government India.

Six zonal offices in Delhi Bhopal, Bangalore, Kolkata, Mumbai and Guwahati.

want to reach every household in rural area

To provide additional employment of 37 lakhs persons by the end of 2011-12 through PMEGP.

Abbreviation KVIC

Formation 1956

Headquarters Mumbai

Parent organization MoMSMEs

Minister of MSME Dinesh Patel

Chairperson Kumud Joshi

Staff Around 94 lacs

CHRONOLOGY 1935 – All India Village Industries Association was

formed.1946 – Government of Madras sought the advice of

Gandhiji and set up a department for Khadi.1953 - Govt. of India set up All India Khadi &

Village Industries Board (AIKVIB)

1955 - It was decided that a statutory body should replace the Board.

1956 - Khadi and Village Industries Commission Act 1956, was passed.

1957 - Khadi and Village Industries Commission came into being.

The post independence period : Khadi and Village Industries within the framework of five-year plans.

CITIZEN CHARTER

SOCIAL OBJECTIVE: Creating and providing employment opportunities in Rural areas with focus on women and other weaker sections of the society. 

ECONOMIC OBJECTIVE: Making use of locally available raw material and skill. 

WIDER OBJECTIVE: Creating sense of self-reliance among the rural people

PROMISE: Transparency, responsiveness and prompt action on queries/request from the target group.

GUIDANCE, HELP AND COMPLAINTS : Contact Public Relation Officer at KVIC. 

The KVIC has broadly re-grouped various village industries under seven heads:

Agro Based and Food Processing Industry (Fruit and Vegetable Processing, pulses processing ,village oil etc)

Polymer and Chemical Based Industry (Soap Industry, Leather Industry )

Forest Based Industry (Medicinal Plants Industry, Bee Keeping Industry)

Mineral Based Industry (Lime)

Handmade Paper and Fiber Industry (Handmade Paper Industry, Fiber Industry)

Rural Engineering and Bio – Technology Industry (Non – Conventional Energy , Electronics)

Service Industry

FUNCTION OF KVIC

Planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural areas.

Training of persons employed or desirous of seeking employment in Khadi and Village Industries.

To build up reserves of raw materials and supply them to persons engaged or likely to be engaged in production of handspun yarn or Khadi or Village Industries.

To provide financial assistance to institutions or persons engaged in the development and operation of Khadi or Village Industries

Studies of the problems of Khadi or Village Industries.

PERFORMANCE & STATISTICS : SALES

Year (Rs. In Crores)

Khadi Village Industries

Total

2000-2001 570.55 7384.55 7955.10

2004-2005 617.84 12487.35 13105.19

2005-2006 628.69 14647.33 15276.02

2006-2007 663.19 16899.21 17562.40

2007-2008 724.39 20819.09 21543.48

2008-2009 799.60 21948.59 22748.19

EMPLOYMENT Year (In Lakh Persons)

Khadi Village Industries

Total

2000-2001 9.56 50.51 60.07

2004-2005 8.64 68.14 76.78

2005-2006 8.68 74.09 82.77

2006-2007 8.84 80.08 88.92

2007-2008 9.16 90.11 99.27

2008-2009 9.50 94.41 103.91

SCHEME & PROGRAM OF THE COMMISSION

Prime Ministers Employment Generation Program (PMEGP)

Rajiv Gandhi Swavlamban Rozgar Yojna (RGSRY)

Rural Industry Service Centre (RISC)

Interest Subsidy Eligibility Certification Scheme (ISEC)

PMEGP

It is the result of the merger of two schemes - Prime Minister’s Rozgar Yojna (PMRY) and The Rural Employment Generation Programme (REGP).

The scheme was launched on 15th August, 2008.

Objectives To generate employment opportunities in rural as well as

urban areas of the country through setting up of new self employment ventures/projects/micro enterprises.

To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

Now, PMEGP presence in 3 lacs villages.

37,37,500 no's of employment has to be provided by the end of 2011-12. through this scheme.

in the current fiscal, the ministry has fixed a target of implementing 59,714 projects under the pmegp with margin money assistance of Rs 836 crore. this would help generate employment for 5.97 lakh persons.

LEVEL OF FUNDING UNDER PMEGPCategories of beneficiariesunder PMEGP

Beneficiary’scontribution

(of project cost)

Rate of Subsidy(of project cost)

Area (location ofproject/unit)

Urban

Rural

General Category 10% 15% 25%

Others (sc/st/obc/women/

physically handicapped

05% 25% 35%

The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh and under business/service sector is Rs. 10 lakh.

The balance amount of the total project cost will be provided by Banks as term loan.

Bank Finance 90% of the project cost in case of General Category

and 95% in case of special category.

Rate of interest and repayment schedule Normal rate of interest shall be charged. Repayment schedule may range between 3 to 7 years

after an initial moratorium as may be prescribed by the concerned bank/financial institution.

Financial Institutions

Public Sector Banks

All Regional Rural Banks, Co-operative Banks, Private Sector Scheduled Commercial Banks approved by State

Small Industries Development Bank of India (SIDBI).

RGSRY

 Designed, developed and promoted by the Delhi K &VIB.

Providing the employment opportunities to the unemployed youths, artisans, trained professionals, skilled technocrats and entrepreneurs

Quantum of loan Not exceed Rs. 3,00,000. At least 10% contribution of entrepreneur is required

(5% for weaker section).

Tenure of loan & interest rate Repaid full within5 year with interest. Recovery of loan may be started after a gap of 12

month. Present interest rate is 10% p.a.

Training Skill formation, Elements of book keeping , knowledge

of marketing, Acquaintance with product costing and more .

RURAL INDUSTRY SERVICE CENTRE (RISC)

Title of the Program Program for promotion of V.I Cluster. Objectives of the ProgramTo provided services like raw material support, skill

up-gradation, training, Quality Control, Testing facilities, marketing promotion, enhance production capacity.

Some K&VI under RISC are: Khadi & Poly Vastra post weaving value addition

facilities, Herbal products: Cosmetics and Medicines, Edible Oil, Detergents & Soaps, Honey Hand Made Paper, Food processing etc.

FOR PROJECT COST UP TO 5 LAKH

Financial Pattern      NE States  Other areas

KVIC’s Share90%  75%

Own Contribution or Loan from Bank/Financial Institutions

10% 25%

Fin. assistance should follow norm blow:

Building/Infrastructure (Project cost up to 5 lakh)

Maximum 15% of project cost.

Plant & Machinery for manufacturing and  or testing facilities and packaging

Minimum 50% of project cost.

Raw  material /new design, product Diversification, etc.  Maximum 25% of project cost.

Skill up gradation & training  and/ or  Product catalogue Maximum 10% of Project cost.

Schemes of the commission

Margin Money Scheme This scheme is to encourage establishment of village

industries in the Country by providing certain fixed amount as Margin Money.

Earlier this programme was being implemented through Nationalized Banks , now extended to Co-operative Banks, Private Sector Scheduled Commercial Banks and State Financial Corporation.

Features of the scheme This scheme is applicable for units coming up in rural areas

only for establishing village industry projects.

Ceiling limit per Project Rs. 25/- Lakhs (exclusive of cost of land).

PROJECT COST MARGIN MONEY

For projects costing up to Rs. 10 L 25% of the Project cost.

Rs. 10/- lacs to 25/- Lakhs 25% of Rs. 10 Lacs + 10% of the remaining cost of the Project.

In case of weaker section and those located in Hill, Border & Tribal areas

Projects costing up to Rs. 10 L 30% of the project cost

Rs. 10/- lacs to 25/- Lakhs 30% of Rs. 10 L + 10% of the remaining cost of the Project

TRAINING : Conducted in three stages to enhance quality landing and

success rate.

Entrepreneur Awareness Programme ( EAP) One day program. intended to create awareness about Margin Money Scheme

& to identify potential entrepreneurs willing to establish rural based industries.

Entrepreneurship Development programme ( EDP) EAP necessary and 15 days program Shows entrepreneurial qualities to establish specific industry.

Skill Development Program (SDP) Training varies from 7 days to 3 months Requires Skill Development in the specific field.

Others schemes:

Rural Industrial Consultancy Services(RICS) To make REGP scheme more effective and

accessible to the entrepreneurs. First generation entrepreneurs are provided

services, such as project formulation ,co-ordination with banks, technical support etc .

Such incentives help new entrepreneurs to set up projects, which will be more viable and better manageable.

Interest Subsidy Eligibility Certification Scheme (ISECS)

It was introduced in May 1977. It is the major source of funding for the Khadi

programme

IMPLEMENTATION OF SCHEMES & PROGRAM

Govt. of India

MSME (admin. head of program)

KVIC

K&VIB(33)-State Govt.body State offices

(29) , K&VI, Corporative

Societies(30,138)

K&VI, Co-operative societies,

Entrepreneur

Entrepreneurship : Success Stories

at a glance

‘Success comes not to those who do different things, but to those

who do things differently’

ENTREPRENEUR: SMT. BHARATI (HARYANA)

Activity Manufacturing of Plaster of Paris

Project cost Rs. 7.23 Lakhs

Annual turnover

Over Rs. 10.00Lakhs

Employment generated

11 person

Monthly Income

Rs. 13,000/-

KAMLESH TRIVEDI ( GUJRAAT)

Attended training on Non-Edible Oils Soap from Gujarat Rajya Khadi & V.I.Board.

Struggle initially for marketing his product but now he is easily marketing his Krishi Soap for which he profoundly thanks KVIC and the Bank.

ENTREPRENEUR : SMT. VANDANA (CHATTISGARH )

Activity Mfg. of Steel Furniture

Project Cost Rs. 9.98 lakhs

Commencement of production

2000 - 2001

Annual Turn Over

Rs. 33,00,000/-

Employment Generated

30 Persons

Monthly Income

Rs11,000/-

SOME MORE……

KVIC fund has been increased to 4.9 billion in 2010-11 as against 1.2 billion in 2008-09.

KVIC planning introduction of solar charkhas (500 solar charkhas ) to increase productivity and enhance the quality of yarn.

Aim to achieve a production target of Rs 27,000-crore and provide employment to 1.45-crore people during the 11th Five Year Plan.

THANK YOU