- 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
Functions of KVIC
- 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.
Why in News?
- 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.
- 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.
Eligible Entrepreneurs / Borrowers
- 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