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KVIC is a governmental agency established by the Indian government under the KVIC Act of 1956 to promote rural employment and economic development. The word Khadi comes from Mahatma Gandhi’s Swadeshi Movement, which promoted the use of hand-woven and home-spun fabrics in 1920. It was a sort of protest against British goods, and the method’s simplicity was astonishing. Khadi is a hand-woven textile manufactured with the charkha, a typical instrument in rural India.
The Khadi and Village Industries Commission (KVIC) was established as an apex body under the Ministry of Micro, Small and Medium Enterprises to plan, promote, facilitate, organize, and contribute to the formation of Khadi and Village Industries in rural India, in collaboration with other rural development agencies.
The Khadi and Village Industries Commission (KVIC) develops, promotes, organizes, and conducts programmes in rural regions across the country to grow Khadi and other village industries. KVIC also aids in the stockpiling of raw resources for future supply to companies. The commission is primarily concerned with the establishment of shared service facilities for the processing of raw materials such as semi-finished items. In addition, KVIC has aided in the development of jobs in the Khadi sector.
KVIC PROJECT
The Khadi and Village Industries Commission is responsible for the following projects:
- Prime Minister’s Employment Generation Programme (PMEGP)
- Market Promotion Development Assistance (MPDA)
- Interest Subsidy Eligibility Certificate (ISEC)
- Work-shed Scheme for Khadi Artisans
- Khadi Reform and Development Programme (KRDP)
- Scheme of Fund for registration of Traditional Industries (SFURTI)
- Honey Mission
Prime Minister’s Employment Generation Programme (PMEGP): Through KVIC, State Khadi and Village Industries Board, and District Industries Centre, PMEGP is a credit-linked subsidy plan for developing new micro, medium, and small firms and creating job opportunities in rural and urban parts of the nation. The Khadi and Village Industries Commission (KVIC) serves as the main body for the PMEGP scheme’s implementation across the country.
Notes:
- The maximum project/unit cost allowable in the manufacturing industry is Rs. 25 lakh.
- In the business/service sector, the maximal project/unit cost that can be declared is Rs. 10 lakh.
- Banks will fund the remaining portion of the overall project cost as a term loan.
Market Promotion Development Assistance (MPDA): The Market Promotion Development Assistance programme was created with the goal of increasing craftsmen’ wages. As part of the MPDA system, craftsmen, spinners, and weavers get a 25% bonus through their bank or post office account.
Interest Subsidy Eligibility Certificate (ISEC): Banks can get loans at a reduced rate of interest under the KVIC scheme provided they have an Interest Subsidy Eligibility Certificate issued by the KVIC. Funding is offered for working capital needs at a reduced rate of interest of 4% per year under this plan.
Work-shed Scheme for Khadi Artisans: The KVIC initiative provides financial help to BPL khadi craftsmen for the construction of work-sheds. The Khadi institution is in charge of ensuring that the financial support provided under the plan is used to benefit the craftsmen, enabling a long-term route to revenue creation, growth, and a better working environment. Providing help for marketing infrastructure and strengthening the infrastructure of current weak Khadi institutions. Under this programme, existing poor Khadi organizations receive financial support to improve their infrastructure and choose khadi sales locations.
Khadi Reform and Development Programme (KRDP): KRDP strives to give rural craftsmen in their households with a low-cost way to generate money. Traditional village businesses like as handmade paper, honey, herbal health and cosmetics, leather, and agro-food processing are also supported by the KRDP.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI): The purpose of the SFURTI programme is to give need-based support for production tool replacement, product development, the establishment of common facility centers (CFC), quality improvement, enhanced marketing, training, and capacity building, among other things. Any financial assistance offered under SFURTI for a single project would be limited to Rs 8 crore. This plan is open to Central and State Government institutions, as well as semi-Government institutions, non-governmental organizations (NGOs), and Panchayati Raj institutions (PRIs).
Honey Mission: Honey (Bee) Mission was developed by KVIC to boost beekeeping and create job opportunities in the country’s beekeeping states. One of the goals of the SFURTI Scheme is to promote scientific beekeeping practices in order to help rural youth and farmers improve their livelihoods. Other operations carried out by KVIC include ceramics, chemical-based, polymer-based, handmade paper and fiber-based, agro-based, beekeeping, and other forest-based activities.
KVIC LOAN
The commission’s loans are handled via PMEGP and are controlled by its rules. The financial aid is granted based on the following criteria, which are mostly connected to MSME specifications:
Quantum of Loan:
Manufacturing Sector: Maximum Rs.25lakhs.
Business and Service Sector: Maximum Rs.10 lakhs.
Per capita investment cap:
Plains: Rs.1 lakh.
Hills: Rs.1.5 lakhs.
The groups listed below are eligible for a KVIC loan.:
- Individuals who are at least 18 years old and have completed the eighth grade.
- Self Help Groups (SHGs)
- Registered and Co-operative Societies
- Charitable Trusts and many more entities
Rate of Interest applied in KVIV Loan: The interest rate for PMEGP loans and KVIC is the same as it is for MSME firms. Most banks are currently charging between 11 and 12 percent interest. The rate under ISEC, on the other hand, is 4%. The difference between the concessional rate and the actual charged is covered by the commission’s budget under the “Grants” heading. Only Khadi and Polyvastra manufacturers are eligible for this benefit.
CONCLUSION
The Khadi and Village Industries Commission, which is an apex organization at the national level, and the State Khadi and Village Industries Boards, which operate in various states and union territories, collaborate to execute the Khadi and Village Industries Program in our country.
