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KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC)

KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC)


Context: Khadi and Village Industries Commission (KVIC) has been continuously working in order to empower the farmers of North East region to help them earn an additional income through various schemes under the aegis of Ministry of MSME.


KVIC distributed bee boxes; Indiathinkers

As part of its efforts, KVIC has distributed 1000 bee boxes to 100 farmers.

It is quite noticeable that KVIC has distributed around 30,000 bee boxes in the North East alone since 2017, that helped generating an additional employment in honey production for around 3000 educated but unemployed farmers

This year KVIC plans to distribute around 2,500 bee boxes in Arunachal Pradesh while it targets to distribute around 10,000 bee boxes in the next year. 

For the first time since 1960’s KVIC has also registered 2 new Khadi Institutions  for promotion of Khadi Artisans in the region. These are: 

(i) Youth for Social Welfare, Tawang and 

(ii) Rural Development Society, Papum Pare

About KVIC

The Khadi and Village Industries Commission (KVIC) is a statutory body which was formed in April 1957 (as per an RTI) by the Government of India, under the Act of Parliament, 'Khadi and Village Industries Commission Act of 1956'. 

It is an apex organisation under the Ministry of Micro, Small and Medium Enterprises, with regard to khadi and village industries within India. In April 1957, it took over the work of former All India Khadi and Village Industries Board.

It seeks to - "plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary."

The Commission has its head office is in Mumbai , whereas its six zonal offices in DelhiBhopalBangaloreKolkataMumbai and Guwahati. Other than its zonal offices, it has offices in 28 states for the implementation of its various programmes.


What are the various schemes and programmes of KVIC?

Following are the List of schemes and Programmes that KVIC is involved in:
  • Prime Ministers Employment Generation Program (PMEGP): The Prime Minister's Employment Generation Programme (PMEGP) is basically a result of the merger of two schemes - Prime Minister's Rojgar Yojana (PMRY) and The Rural Employment Generation Programme (REGP).
    • As part of the Program the rural beneficiaries receive up to a 25% margin compensation in rural areas and 15% in urban areas for the general category and 35% in rural areas and 25% in urban areas for SCs, STs, OBCs, minorities and women among other special categories.
  • Interest Subsidy Eligibility Certification Scheme (ISEC): The Interest Subsidy Eligibility Certificate (ISEC) Scheme is the major source of funding for the Khadi programme. It was introduced in May 1977 to mobilise funds from banking institutions to fill the gap in the actual fund requirement and its availability from budgetary sources.
    • As part of the scheme, loans are provided by the banks to the members at a concessional interest rate of 4% p.a.to meet their working/fixed capital requirements.
    • The difference between the actual interest rate and the concessional rate is borne by the commission under the 'grants' head of its budget. However, only members producing Khadi or Polyvastra (a type of Khadi) are eligible for this scheme.
  • Rebate Scheme: The concept of rebate on sales of Khadi and Khadi products is made available by the Government so as to make the price of Khadi and Khadi products competitive with other textiles.
    • Normal rebate (10 %) all through the year and an additional special rebate (10 %) for 108 days in a year, is given to the customers.
    • The rebate is allowed only on the sales made by the institutions/centers run by the Commission/State Boards and also at the sales centers run by the registered institutions which are engaged in the production of Khadi and polyvastra.
    • Recently, the FM has proposed to M/o MSMEs to redraw this rebate scheme for Khadi and Village industries with a view that "ministry should approach the plan commission and not seek year-to-year extension of the scheme. Apart from this, it has asked the MSME ministry to redesign the scheme in a manner that it should benefit the artisan and not the seller, which (has been) the case so far" With regard to this, a proposal received from the Commission for introducing Market Development Assistance as a possible alternative to Rebate on Sale is being considered by the Government.

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