KVIC –

Khadi & Village

Industries
Commission
Presented By:-
Kajal Agarwal (1801632)
Kumud Singh (1801638)
 GANDHI JI’S THOUGHT ABOUT KHADI

Khadi connotes the beginning of economic freedom

and equality for all in the country. It must be taken
with all its implications. It means a wholesale
swadeshi mentality, a determination to find all the
necessities of life in India, and that too, through
the labor and intellect of villages.
 KHADI
• 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.
• “Khadi” means any cloth woven on handlooms in India from cotton, silk or woolen yarn
handspun in India or from a mixture of any two or all of such yarns.
 VILLAGE INDUSTRIES
• Any Village Industry including Coir based projects(except those mentioned in the
negative list) located in the 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
a full time artisan or worker i.e. Capital Expenditure on workshop/ work shed,
machinery and furniture divided by full time employment created by the project does
not exceed Rs. 1 lakh in plain areas and Rs.1.50 lakh in hilly areas.
• 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 INDUSTRIES

• Both are labour intensive in nature and we are labour surplus country.
• Required little capital to set up.
 ABOUT KVIC
• Establish under the Khadi and Village Industries Commission Act,1956(61 of 1956, as amended
by act no. 12 of 1987 and Act No.10 of 2006.).
• Statutory Organization engaged in promoting & developing KVI.
• Providing non farm employment opportunities in the rural areas & strengthening rural economy.
• Took over activities from the erstwhile All India Khadi and Village Industries Board w.e.f. 01 April
1957.
• One of the major Organization in decentralized sector.
• Undertakes activities like skill improvement , Transfer of technology , Research & development,
Marketing , etc.
 CHRONOLOGY
1953 - Govt. of 1956 - Khadi and
1935 – All India India set up All Village
Village India Khadi & Industries
Industries Village Commission Act
Association was Industries Board 1956, was
formed. (AIKVIB) passed.

1946 – 1955 - It was 1957 - Khadi and

Government of decided that a Village
Madras sought statutory body Industries
the advice of should replace Commission
Gandhiji and set the Board. came into
up a department being.
for Khadi.
 KHADI AND VILLAGE INDUSTRIES
COMMISSION
• KVIC is a statutory body formed by
Abbreviation KVIC
the Government India.
• Six zonal offices in Delhi Bhopal, Formation 1956
Bangalore, Kolkata, Mumbai and
Guwahati. Headquarters Mumbai
• Want to reach every household in
MoMSMEs (Ministry of
rural area
Parent Organisations Micro, Small, and
• To provide additional employment Medium Enterprises)
of 37 lakhs persons by the end of
2011-12 through. Minister of MSME Shri Nitin Gadkari

Chairperson Shri Vinai Kumar Saxena

 FUNCTIONS 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 hand spun 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.
 OBJECTIVES OF KVIC
• The broad objectives that the KVIC has set before it are...The social objective of providing
employment. The economic objective of producing saleable articles. The wider objective of
creating self-reliance amongst the poor and building up of a strong rural community spirit.
• 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.
 FEATURES OF KVIC
• Interest Rate: Depends on applicant’s profile and business requirements
• Loans offered are directed and governed by PMEGP under which is below mentioned
criteria for specific MSMEs:
° Loan Amount for Manufacturing Sector: Maximum Rs. 25 lakh
° Loan Amount for Business and Service Sector: Maximum Rs. 10 lakh
• Funding Pattern: Mentioned below in PMEGP Scheme
• Repayment Tenure: From 3 years – 7 years, including 6 months of moratorium period
• Income Capping: No criteria
• Margin: Lock-in for 3 years in separate account later adjusted with KVIC loan
 ELIGIBILITY CRITERIA FOR KHADI AND
VILLAGE INDUSTRIES COMMISSION
(KVIC)

KVIC loan can be availed by the following entities:

• Individuals of minimum 18 years of age with 8th class pass certificate
• Self Help Groups
• Registered and Co-operative Societies
• Charitable Trusts
 RE-GROUPING VARIOUS VILLAGE
INDUSTRIES
• 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, Fibre Industry)
• Rural Engineering and Bio – Technology Industry (Non – Conventional Energy,
Electronics)
• Service Industry
SCHEME & PROGRAM OF THE COMMISSION

• Prime Ministers Employment Generation Program (PMEGP)

• Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
• Interest Subsidy Eligibility Certification Scheme (ISEC)
• Market Promotion Development Assistance (MPDA)
• Khadi Reform and Development Programme (KRDP)
• Beekeeping – The Honey Mission
• Market Development Assistance (MDA)
 PRIME MINISTERS EMPLOYMENT GENERATION
PROGRAM (PMEGP)

• Prime Minister’s Employment Generation Programme (PMEGP) was launched in

2008 to replace The Rural Employment Generation Programme (REGP) scheme.
Ministry of MSME launched PMEGP which is a credit linked subsidy program.
The prime reason for launching this scheme is to create employment in rural
and urban areas across the nation.
• Under PMEGP, the beneficiaries are required to invest their own contribution of
certain percentage of the project cost to avail subsidy.
 SCHEME OF FUND FOR REGENERATION OF
TRADITIONAL INDUSTRIES (SFURTI)

Launched in 2005, SFURTI is a Scheme of Fund for Regeneration of Traditional

Industries Ministry of MSME. The primary objective of SFURTI is to organize the
traditional artisans and industries into groups to make them competitive and
provide them with long-term sustainability. The financial support provided under
SFURTI for any specific project shall be subject to maximum of Rs 8 crore.
Institutions of the Central and State Governments and semi-Government
institutions, Non-Government organizations (NGOs), Panchayati Raj institutions
(PRIs), etc. can apply for this scheme.
 INTEREST SUBSIDY ELIGIBILITY CERTIFICATION SCHEME
(ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is the major funding
source for the Khadi programme. This scheme is applicable for all registered
institutions of KVIC. This scheme was introduced to mobilize funds from banking
institutions to bridge the gap in the actual fund requirement and its availability
from budgetary sources. Under this scheme, funding is provided at a concessional
rate of interest of 4% per annum for working capital purposes as per the
requirements.
MARKET PROMOTION DEVELOPMENT ASSISTANCE (MPDA)

• Market Promotion Development Assistance (MPDA): This scheme is launched to

provide services like market promotion and development assistance for Khadi
industries. The aim of this scheme is to ensure increased earnings for artisans.
• Under the former MDA scheme, financial assistance was distributed amongst
Artisans (25%), selling institutions (45%) and producing Institutions (30%). It
goes 20% for selling institutions and 40% for both artisans and producing
institutions.
 KHADI REFORM AND DEVELOPMENT PROGRAMME (KRDP)

Khadi Reform and Development Programme (KRDP) is formed for employment

generation, enhancing the earning of artisans and ensuring the positioning of
Khadi considering the present needs of Khadi industry. The main focus of this
scheme is on Repositioning of Khadi and linking to market requirements,
providing selective subsidy and enhanced remuneration.
 BEEKEEPING – THE HONEY MISSION

Honey Mission aims to improve the livelihoods of the rural communities. It works
around five dynamics that include:
• It’s an income generating activity
• Medicinal and food value of honey
• Supports agricultural activities
• Contributes to forests conservation efforts
• Facilitates healthy linkages between biodiversity towards sustainable livelihoods
 MARKET DEVELOPMENT ASSISTANCE (MDA)

MDA scheme is promotion assistance for development of Khadi which is paid at

20% on production. Approximately 25% of MDA is paid to the institution from
which 25% is given to artisans as incentive and 30% is offered to institution for
production and 45% for marketing purposes. Under MDA scheme, financial
assistance of 25% is reserved for payment among weavers and spinners as an
additional incentive through their post/bank office account.
IMPLEMENTATION OF SCHEMES &
PROGRAM
Govt. of India

MSME (admin.
Head of program)

KVIC

State Offices (29), K&VIB(33)- State

K&VI, Corporative Govt. body
Societies (30,138)

K&VI,
Cooperative
societies,
Entrepreneur
 OTHER INITIATIVES TO DEVELOP KVI
SECTORS
• Revamping Jamanalal Bajaj Central Research Institute (JBCRI), Wardha
• MOU with Technical Interface Institutes
• Categorization Of Institutions
• Rural Industries Consultancy Services(RICS)
• Registering Of New Khadi Institutions belonging to SC/ST Beneficiaries
• Khadi Artisans Welfare Trust Fund(KAWTF)
• National Flag Production Centres
• Khadi ‘Ready-to-Use’ Mission
• Central Sliver Plants (CSPs)
• People Education Programme (PEP)
• Credit Guarantee Trust Fund for MSME(CGT-MSME)
 NEW INITIATIVES
• Providing work shed(s) to khadi spinners
• Enhancing productivity of khadi industry and artisans through comprehensive backward-forward
linkages
• Providing nursing fund for around 200 weak institutions, renovation of sales outlets in 30
selected cases.
 ORGANIZATIONAL SETUP
• KVIC is functioning under the Ministry of Micro, Small and Medium Enterprises(MSME)
• KVIC having:-
▪ Its head office Mumbai
▪ 6 Zonal Offices located in Delhi, Bhopal, Bengaluru, Kolkata, Mumbai and Guwahati
▪ 29 State Offices
to facilitate speedy implementation of KVI programs .
• KVIC also undertakes training Activities though:-
▪ Its 38 departmental and non-departmental training centers
• Marketing is taken up through:-
▪ 12 departmentally run Khadi Gramodyog Bhawans located in urban areas.
▪ 7050 institutional retail sales outlets spread over different parts of the country.
KVIC also makes available Quality raw material to Khadi institutions through its 6 Central Silver
Plants(CSP).
 CONSTITUTION OF COMMISSION, NATIONAL
KVI BOARD AND ZONAL COMMITTEES

• Based on the amended KVIC Act,1956, the Commission has been reconstituted by GoI (Noti.
Date 19 July 2006).
▪ There are 13 members including Chairman and Nominated experts from the fields of Education,
Science & Technology, Marketing and Banking.
• National Khadi and Village Industries Board has been constituted in March 2007(Sec. 10 of
Amended KVIC Act)
• As per SEC 12(A) of Amended KVIC Act:-
▪ 6 Zonal Committees have also been constituted on 01 March,2007.
▪ Under the chairmanship of the non-official member of the Commission representing the
concerned Zone
PERFORMANCE & STATISTICS:
SALES
(Rs. In Lakh)
Year
Khadi Village Industries Total
2008-09 113.91 (88.76) 14.42 (11.24) 128.33(100)
2009-10 95.78 (90.43) 10.14 (9.57) 105.92 (100)
2010-11 88.77 (90.59) 9.22 (9.41) 97.99 (100)
2011-12 57.46 (78.66) 15.59 (21.34) 73.05 (100)
2012-13 74.31 (71.53) 29.58 (28.47) 103.89 (100)
2013-14 45.18 (50.07) 45.05 (49.93) 90.23 (100)
2014-15 122.69 (75.65) 39.49 (24.35) 162.18 (100)
2015-16 84.99 (52.05) 78.30 (47.95) 163.29 (100)
2016-17 45.80 (82.25) 9.88 (17.75) 55.68 (100)
2017-18 76.80 (74.74) 25.95 (25.26) 102.75 (100)
 IMPLEMENTING AGENCIES
• KVI programmes are implemented through
▪ 33 States/Union Territories(Uts) Khadi and Village Industries Boards(KVIBs)
▪ 5000 registered institutions
▪ 30000 cooperative societies and bank/financial institutions.
• The Khadi Programme Is implemented through
▪ Institutions registered either with KVIC or State/UT KVIBs.
• In the case of village industries, the Commission implements the Prime Minister’s Employment
Generation Programme (PMEGP)
 BUDGETARY SUPPORT TO KVIC
• The Union Government through the Ministry of Micro, Small and medium Enterprises.
• Provided funds to KVIC for undertaking its various plan and Non-plan heads.
• Provided primarily by way grants and loans.
• The funds provided from budgetary sources(both Plan and non-plan) during Xth Plan, are
Budget Allocation For Plan Rs. 2455.17 Crore and for non-Plan Rs.423.17 Crore and Funds
released for plan Rs. 2373.52 Crore and for Non-Plan Rs. 399.63 Crore.
 CONCLUSION
• KVIC helps Glamorize Our Traditional Fabric
• KVIC deals with employment opportunities for artisans and craftsmen in rural areas.
• KVIC makes KHADI as the textile of the future
• KVIC is taking steps towards the welfare of artisans.
THANK YOU!!