Khadi and Village Industries Commission

The Khadi and Village Industries Commission (KVIC) is a statutory body established by the Khadi and Village Industries Commission Act of 1956.
It functions under the Ministry of Micro, Small and Medium Enterprises.
KVIC plans, promotes, organizes and implements programs for the development of Khadi and other village industries in rural areas nationwide.
KVIC also focuses on creation of employment in the Khadi industry.

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

Building up of a reserve of raw materials and implementation for supply to producers.
Formation of common service facilities for processing of raw materials that include semi-finished goods.
Promoting the sale and marketing of Khadi and Village Industries products, as well as handicrafts.
Promoting research in the village industries sector related production techniques and equipment.
Providing financial assistance to individuals and institutions for the development and operation of Khadi and Village industries.

In a unique initiative that will have far-reaching benefits, Khadi and Village Industries Commission has paved the way for sustainable self-employment for nine women in Goa who were under acute distress due to loss of their loved ones due to Covid-19 pandemic.
KVIC has provided these women, who lost the bread-winners for their families, with financial assistance to set up their own manufacturing units under its flagship scheme Prime Minister’s Employment Generation Program (PMEGP).
This is for the first time in the country that a government agency is creating livelihood support for the vulnerable people affected by the pandemic.

Prime Minister’s Employment Generation Programme (PMEGP) is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises since 2008-09.
It is a major credit-linked subsidy programme aimed at assisting first generation entrepreneurs for setting up micro enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME, as the single nodal agency.
At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
Under the scheme, loans are being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy (refers to the amount that the government contributes to beneficiaries availing PMEGP loan) being given by the Ministry of MSME through KVIC.

PMEGP

The scheme is applicable to all viable projects in rural as well as urban areas, under the Micro enterprises sector.
The maximum cost of the project admissible under the manufacturing sector is Rs.25 lakhs and the business/services sector is Rs.10 lakhs.
Only one person from a family is eligible for obtaining financial assistance under the scheme.
Assistance under the Scheme is available only for new projects.

Any individual, above 18 years of age
The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
Self Help Groups
Institutions registered under Societies Registration Act, 1860
Production Co-operative Societies
Charitable Trusts

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