the khadi and village industries commission promoting ivory product - sukanya kadyan

8/22/2019 The Khadi and Village Industries Commission promoting ivory product - Sukanya Kadyan

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KVTgASTIVITIES AND PRO&RAMMES

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STATE OFFICEKHADI AND VILLAGE INDUSTRIES COMMISSIONSUPER MARKET COMPLEX, DIMAPUR-797112

Tel. & Fax: (03862) 226546, e-mail: [email protected]


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XUNUI AND VILLAGE INDUSTRIESCOMMISSION

A MISSIONTo create employment opportunities in the non -farmingsector in the rural areas.To produce saleable articles or to provide services'To support rural development in its widest sense and toimprove the qualitY of life.

IT'S MOTTOTo ensure employment at door steps'To ensure production by the masses'To harness human technologY'To preserve environment.To impart dignitY of labour.To manage with low caPital.To rejuvenate rural economY.To act as a bulwark against migration to city schemes'To promote decentralized economic activities'To invite participation of women in economic activity.

Topics Page No.1. Khadi and Village lndustries Commission - A Profile2. A Few Concepts of Khadi and Village lndustries3. An lllustrative List of Village lndustries4. Negative List of Village lndustries5. Prime Ministefs Employment Generation Programme6. Salient Points on PMEGP (Questions and Answers)7. KVIC in North Eastern RegionL KVIC Departmental Training Centres9. KVIC Non-Departmental/ KVI Board's Training Centres

1 0, List of Other Agencies who can Assist Applicants

1o1014153037384043

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KLIIC ACTNITIES AND PROGRANTNIES(vi)

Research and DeveloPment:ln order to make village industries competitive and self-sustaining, KVlc provides thrust on Research and Development,and coutd achieve a lot. KVIC has taken up Research andDevelopment projects with Nation's most prestig ious institutes, I lT5.

Cluster Development Programme:' KVIC initiated development of cluster in 1980 and 1990 toprovide a wider coverage of artisans, particularly artisans engagedin traditional industries under its preview. ln April 1998, KV1Cintroduced a scheme of common facilities centre (cFC) forproviding support services to clusters. The cFCs were to extentsupportior raw materials supply, improved tools and implements,supply of spare parts, teohnical know-how and marketing'linkage

etc, to the cluster. ln June 1998r ,l(VlC decided to revive the clusterscheme as part of KVI's celebration programme of Golden Jubileeof lndia's lndependence "Abhyudayal'.Marketing:

KVIC has been playing a catalyst role by providingsupporting inputs to its NGOs, institutions for marketing of KVIproducts manufactured by them. The institutions have beenprovided funds for opening sales outlets and conductingexhibition-cum- sale to sell their products with an aim to penetratein the domestic and global market.

KVIC has launched three common brand namee i'e'Khadi, Sarvodaya and Desi Aahar for making KVI productsglobally competiiive through quality driven brands. Khadl brandis tor knaai products. Sarvodaya brand for village industryproducts. Desi Aahar for food products. sarvodryr productirng" consists of toilet soap, pickles, agarbattl, honcy etc' andis aimed at domestic consumer market. Khrdl brfnd exclusiveproduds like,essential oil, high'fashion deg|gnfr gf rmantE, herbalproducts etc. were developed to cetcr to thc hlgh cnd market aswellas export.

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KITIC ACTIWTIES AND PBOGRANINIES(viii)

Science & Technology:KVIC has close liaison with premier Academic andResearch Organizations like llTs, llSc, NlTs, NIFT, NID etc. fortechnological support in the areas of development of efficientprocesses, products, efficient tools/ equipments, etc.Mahatma Gandhi lnstitute of Rural industrialization(MGlRl) has been set up at Wardha in technical collaborationwith lndian lnstitute of Technology (llT), New Delhi, which startedfunclioning to improve the quality parameters of various productsto accelerate the pace of growth and development of the sectorin the competitive econorny.

E- Gharkha:One of the major achievements of KVIC is developmentof one, two and eight-spindle NMC E- charkha, in collaborationwith flexitron organization, Bangalore, where the spinner whileplying the charkha, rotates an armature / dynamo which in turncharges a battery. lt allows the spinnerto light her dwelling place,listen to transistor and rqcharge cell phone.l(/lC has its CentralOffice at Mumbai. lt has 36 State andDivisional Offices, 6Zonal Offices at New Delhi, Bhopal, Kolkata,Guwahati, Bangalore and Mumbai, 15 Departmentaland 23 Non-DepartmentalTraining Centres and a number of accredited Training

Centres, 13 Departmental Sales Outlets and 6 Sliver Plants. ltspartner agencies include 33 States and Union Tenitories Khadi andV.l. Boards, over5600 registered institution (NGOs), over7050 retailsales outlets and 27 public sector banks with a network of morethan 50000 branches, besides Regional Rural Banks and Co-operative Banks spread alloverthe ruralareas in the country. During2006-07 total sales of Khadi and Mllage lndustry products was overRs. 17562 crores and employment generation for 88.92 lakhpersons. Khadi sector provides a range of diverse products rangingfrom hand-oven and hand-spun textiles of cotton, gllk, woolen andpolyvastra and various village industry productS, KVIC has, thus,been playing a very significant role ln rural lndustrlallzation andemployment generation in the country.

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K!,TIC ACTIVITIES AND PBOGRAIVTMESilr

An lliustrative List of Villase lndustriesGroup-l: Mineral Based lndustrv:(1) Cottage Pottery lndustry(2) Lime Stone, Lime Sfell and other lime products industry(3) Stone cutting, crushing, carving and engraving fortemflesand Buildings.Utility articles made out of stone,

Slate and Slate pencil making,Manufacture of Plaster of Paris,Utensilwashing powdelFuel briquetting,Jewellery out of Gold, Silver, Stone, Shell and syntheticmaterials.(10) Manufacture of Gulal, Rangoli, Abir etc.(11) Manufacture of Bangles,(12) Manufacture of Paints, Pigments, Varnishes and Distemper(13) Manufacture of Glass Toys(14) Glass Decoration-Cutting, Designing and polishing,, Group- ll: Forest Based lndustrv:(16) Handmade paper,(17) Manufacture of Khata,

(18) Manufacture of Gums and Resins,(19) Manufacture of Shellac,(20) Cottage Match lndustry, Manufacture of Fire works andAgarbatties, ,(21) Bamboo and cane work,(22) Manufacture of paper cups, plates, bags, and other papercontainers.(23) [f;;f*dre of exerciee book binding, cnvelop making,r.egister making, including all stationeryitems made of paper,(24) Khus tattis and broom making.(25) Collection, processing and packing of forcat products,(26) Photo framing,(27) Manufacture of Jute projects (under flbrc lndustry)

I{IIC ACTIVITIES AND PROGRAYINIES

(28) Processing, packing and marketing of cereals, pulses,spices, condiments, masala etc.(29) Noodles making,(30) Power atta chakki,(31) Daliya making,(32) Mini rice shelling unit,(33) Plam Gur making and other palm products industry,(34) Manufacture of cane gur and Khandsari,(35) lndian Sweets Making,(36) Raswanti- Sugarcane juice catering unit,(37) Bee-keeping,(38) Fruits and vegetable processing, preservation and canningincluding pickles,Ghani oil industry,Mentholoil,Fibre other than coir,Collection of forest plants and fluits for medicinal purpose,Processing of maize and ragi,Pith work, manufacture of pith mats and garlands etc.Cashew processing,Leaf cup making,Milk products processing unit,Cattle feed, poultry feed manufacturing,

Group- lV: Polvmer and Chemical Based lndustrv:

(4)(5)(6)(7)(8)(e)

(3e)(40)(41)(42)(43)(44)(45)(46)(47)(48)

(49) Flaying, curing and tanning of hides and skins and ancillaryindustries connected with the small and cottage leather industry(50) Cottage soap industry,(51) Manufacture of rubber goods (dipped, latex products)(52) Products out of Rexin,(53) Materials made from horn, bone & ivory,(54) Candle, Camphor and sealing wax making,(55) Manufacture of packing items of plastic,(56) Manufacture of bindi,(57) Manufacture of Mehandi,


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KIIIC ACT,J/ITIffi AFID PROGRAMMES(58) Manufacture of essential oils,(59) Manufacture of shampoos,(60) Manufacture of hair oil,(61) Detergents and washing powder manufacturing (nontoxic).

Group-V: Enoineerino and Non-conventional Enerov:(62) Carpentry(63) Blacksmithy,(64) Manufacture of household aluminium utensils,(65) Manufacture and use of manure and methane (Gobar) Gasfrom cow dung and other waste products (Such as flesh ofdead animals, night soils etc.)Vermiculture and waste disposal,Manufacture of paper pins, clips, safety pins, stove pins etc.Manufacture of decorative bulbs, bottles, glass etc.Umbrella Assembling,Solar and wind energy implements,Manufacture of handmade utensils out of brass,Manufacture of handmade utensilb out of copper,Manufacture of handmade utensils out of Bell metal,Other articles made out of Brass, Copper and Bell Metal,Production of Radios,

Production of Cassette playerwhether or not fited with Radio,Produclion of cassette recorderwhether or not fitted with radio,Production of voltage stabilizetManufacture of electronic clocks and alarm time pieces,Carved wood and artistic furniture making,Tin Smithy,Motor winding,Wire net making,lron Grill making,Manufacture of "ruraltransport vehicles such as handcarts,bullock carts, small boats, assembly of bicycle, cyclerickshaq motorized carts etc.Manufacture of m usical instruments.

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a)

b)

c)

d)

Wrc ACTIVITIES AND PROGEAITIMESNegative List of Activities

Activities under Negative list (not eligible for assistance underPMEGP) are:Any industry/business connected with Meat (slaughtered), i.e.processing, canning and/or serving items made of it as food,production/manufacturing or sale of intoxicant items likeBeedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or salesoutlet serving liquor, preparation/producing tobacco as rawmaterials, tapping of toddy for sale.Any industry/business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoonrearing), Horticulture, Floriculture, Animal Husbandry likePisciculture, Piggery Poultry Harvester machines etc.Manufacturing of Polythene carry bags of less than 20microns thickness and manufacture of carry bags orcontainers made of recycled plastic for storing, carrying,dispensing or packaging of food stuff and any other itemwhich causes environmental problems. : ,lndustries such as processing of Pashmina Wool and sr.lchother products like hand spinning and hand weaving, takingadvantage of Khadi Programme under the purview ofCertification Rules and availing sales rebate.e) Rural Transport (Except Auto Rickshaw in Andaman &Nicobar lslands, House Boat, Shikara & Tourist Boats inJ&K and Cycle Rickshaw).

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KlI IC ACTN ITTES AT{D PROGRAII{IuIES'1. Quantum and Nature of FinancialAssistance

Categories of beneficiariesunder PMEGP

Beneficiary'sconkibution

(of project cost)Rate of Subsidy(of project cost)

Area (location of projecUunit) Urban RuralGeneralCategory 1}Yo 15o/o 25o/oSpecial (including SC / ST /OBC/MinoritiesMomen, Ex-servicemen,Physically handicapped, Hill andBorder areas etc.

05% 25Yo 35o/o

All categories of beneficiaries ofStates of North Eastern Region

05o/o 25Yo 350/o

4. Geiling Limit of Project costa) The maximum cost of the projecUunit admissible undernlanufacturing sector is Rs.25 lakh. .b) The maximum cost of the project/unit admissible under.business/service sector is Rs. 10 takh.Note:c) Project cost will include Capital Expenditure and one cycle

of Working Capital.d) Cost of the land should not be inctuded in the Project cost.e) Cost of the ready built and long lease or rentalwork shed/workshop can be included in the project cost subject torestricting such cost to be included in the project costcalculated for a maximum period of 3 years only.0 Projects without Capital Expenditure are not eligible forfinancing under the Scheme.g) Projects costing morethan Rs.Slakh, which do not requireworking capital, need clearance from the Regional Office

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Wrc ACTruIrIES AND PROGRAIUIPTESNote:

(1) The lnstitutions/production Co-operative Societies/Trusts specifically registered as such and SC/ ST/ OBC/Women/ Physically Handicapped / Ex-Servicemen andMinority tnstituiions with necessary provisions in thebye-'laws to that effect are eligible for Margin Money(subsidy) for the special categories. However, suchlnstitutions etc. not registered as belonging to specialcategories, will be eligible for Margin Money (Subsidy)for general category.

(2) Only one person from one family is eligible for obtainingfinancial assistance for setting up of projects underPMEGP. The 'family' includes self and spouse.5. lmplementingAgencies5.1 Nodaland lmptementing Agency at the National level:The Khadi and Village lndustries Commission (KVIC),Mumbai which is implementing the Scheme is the singlenodal agency at the national level.5.2 {mptementing Agencies at the State Level: (a) StateDirectorates of KVlc (b) state Khadiand village lndustriesBoards (KVlBs) and (c) District rndustries centres in rurarareas. ln urban areas, District lndustries Centres (DlCs)are the only implementing agency. KVlc will coordinate withKVIBs/ DlCs and monitor performance in rural and urbanareas. KVIC will coordinate with State KVIBs/State DlCsand monitor performance in rural and urban areas. KVIC'and DlCswitlalso involve NSIC, UdyamiMitras empanelledunder Rajiv Gandhi Udyami n4iira yojana (RGUMY),Panchayati Raj lnstitutions and other NGOs of repute inidentificationofbeneficiarieslunderPMEGP.

IflI,IC ACTTVITIES AND PROGRANINTES

The nodal agencies will associate a number of otheragencies in the implementation of PMEGP Some of suchagencies are:Field Offices of KVIC and its State officesState KVI BoardsBanks and Financial lnstitutions.KVI FederationDepartment of Women and Child Development (DWCD),Nehru Yuva Kendra Sangathan (NYKS), Army WivesWelfare Association of lndia (AWWA) and Panchayati Rajlnstitutions (PRl)Experience NGOsGovernment, UGC or AICTE recognized Professionallnstitutions/ Technical CollegesSelected Certified KVI institutionsKVIC/KVI B Traini ng Centres.Micro, Small and Medium Enterprises Developmentlnstitutes (MSME-D|s), MSME Tool Rooms and TechnicalDevelopment Centres.National Small lndustries Corporation's (NSIC) offices,Technical Centres, Training Centres, lncubators and Trainingcum lncubation Centres (TlCs).lndian lnstitute of Entrepreneurship (llE), GuwahatiUdyami Mitras empanelled under Rajiv Gandhi UdayamiMitra Yojana.(Further details can be seen under "List of OtherAgencies Who CanAssistApplicants").6. Financiallnstitutions(i) All Public Sector Banks.(ii) All Regional Rural Banks.(iii) Co-operative Banks and Private SectorScheduled CommercialBanks approved by State LevelTask Force Committee(iv) Small lndustr.ies Development Bank of lndia (SlDBl).

i)ii)ii i)iv)v)vi)

vii)viii)ix)x)xi)

xii)

xiii)xiv)


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7. ldentification of beneficiaries:7.1 Th-oidentification of beneficiaries will be done at the districtlevel by a Task Force consisting of representatives fromKVIC/ KVIB and DlCs and Banks.7.2 TheTask force would be headed by the concerned DeputyCommissioner.7.3 The Bankers should be involved right from the beginning toensure that bunching of applications is avoided.7 .4 The applicants, who have already undergone training of atleast 2 weeks under Entrepreneursliip Develo[mentProgramme (EDP) / Skill Development programme lbOey lEntrepreneurship cum Skill Development programme(ESDP) orVocationalTraining (W), will be allowed to submit ,applications directly to Banks. However, the Banks will referthe application to the Task Force for its consideration.7.5 Exaggeration in the cost of the project with a view only toavailing higher amount of subsidy should not be allowed.7.6 The selection process should be through a transparent,objective and fair process. The panchayiti Raj lnstitutionsshould be involved in the process of selection8. Bank Finance8.1 Bank will sanction 95% of the project cost to the beneficiary/institution and disburse full amount suitably for setting up ofthe project.8.2 Bank will finance Capital Expenditure in the form of TermLoan and Working Capital in the form of cash credit. Bankcan also finance project in the form of Composite Loanconsisting of Capital Expenditure and Working Capital. Theamount of Bank Credit will be ranging between 60-70% ofthe total project cost after deducting ZS-3So/o of marginmoney (subsidy) and owner's contribution of S% frombeneficiaries. This scheme will thus require enhancedallocations and sanction of loans from participating.banks.

8.3

KI|IC ACTNffiES AI,lD P ROGRAIuIIuIESThe Reserve Bank of lndia (RBl) has already issued guidelinesto the Public Sector Banks to ensure 20 Yo year to year growthin creditto MSME Sector. SIDBI is also strengthening its creditoperations to micro enterprises so as to cover 50 lakh additionalbeneficiaries over five years beginning 2006-07, and isrecognized as a participating financial institution under PMEGP.Though Banks will claim Margin Money (subsidy) on thebasis of projections of Capital Expenditure in the projectreport and sanction thereof, Margin Money.on the actualavailment of Capital Expenditure only will be retained andexcess, if any, will be refunded to KVIC, immediately afterthe project is ready for commencement of production.Working Capitalcomponent should be utilized in such a waythat at one point of stage it touches 1}0o/olimit of Cash Creditwithin three years of lock in period of Margin Money and notless than 75o/o ulilization of the sanctioned limit. lf it does nottouch aforesaid limit, proportionate amount of the MarginMoney is to be recovered by the BanklFinancial lnstitutionand refunded to the KVIC at the end of the third year.Rate of interest and repayment schedule. Normal rate ofinterest shall be charged. Repayment schedule may rangebetween 3 to 7 years after an initial moratorium as may beprescribed by the concerned banUfinancial institution. Bankshave been routinely insisting on credit guarantee coverageirr.espective of the merits of the proposal. This approachneeds to be discouraged. :Village lndustryAny Village lndustry including Coir based projeots (except thosementioned in the negative list) located in the rural area whichproduces any goods or renders any service with orwithout theuse of power and in which the fixed capital investment per headof a full time artisan or worker i.e. Capital Expenditure onworkshopl wor,kshed, machinery and fumiture divided by fulltime employment created by the project does not exceed Rs. 1 . 00iakh in plain areas and Rs.1.50 lakh in hilly areas.

8.4

8.5

9.


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10. RuralArea(i) Any area classified as viilage as per the revenue record ofthe State/Union Territory, irrespective of population.(ii) lt will. als.o include any area even if ctassified as town,11. Modalities of the operation of the Scheme(i) Project proposals will be invited from potential beneficiariesat district levelthrough multi-media publicity by KVlc, KVIBsand DlCs.(a) Sponsoring of project by any agency is not mandatory. Thebeneficiary can direcily approach Bink/Financial lnstitutionalong with his/her prqect proposar. However, the appricationsreceivgd direcfly by the Banks will be referred to'the TaskForce for its consideration.(b) Proposals can be sponsored by KVIC/ KVIBs I DlctPanchayat Karyalayas etc.(c) The Task Force h.eaded by the concerned Deputycommissioner scrutinizes the apprications and based onthe experience, technicar quarification, and skiil, viaoitity orthe, project etc., the Task Force shorflists suitable ones andcalls for an interview of the applicants separately for ruraland urban areas. The serecied candidates are providedproject formuration guidance and orientation by'KVrc oiKVIBs or Drcs who arso assist and guide themlin projectformulation and submission to the concerned Bank in thearea. The applicants-may also approach any other. agencieslisted under para 5.3.(d) KVlc will identify the Nodal Banks at state tevet inconsultation with state Governments and will forward thelist to all the implementing agencies.(ii) The release of.funds to the imprementing agencies wiilbe in the following manner:-(a) Govemment will provide funds under pMEGp to KVrc, thenodal implementing agency. KVlc wiil in turn, within a periodof 15 days of receipt of the money from the Government,

(b)

KVIC ACTIYITIES .4ND PBO GRAMMEAplace the margin mdnby funds with,the irnplemenfing Banksatthe state level in their respective.accounts in accordancewith the targets allocated to each implementing agency.CEO, KVIC will convey the margin money tar:gets allotted toeach State to the Principal Secretaries/Secretaries(l ndustries)l Commissioners (l ndustries) simultaneously. Thetarget among the Districts in the State will be assigned bythe State LevelBankers Coordination Committee (SLBCCj.sLBCC will ensure that targets are evenly distribuied withineach district. The State-wise targets in respect of KVIC/KVIBs will be made available OV XV|C to SLBCC whereoverall allocation of district-wise tirgets will be decided. Anymodification of the targets will be permitted only with theconcunence of the Ministry.

.KVIC will place the margin money amount with the Banksinvolved in the implementation of the scheme in accordancewith the targets allocated to the implementing Banks inthe State/ District. DlCs, in close coordination with Banks,will ensure that at least 5O % of the total margin moneyallocated to them will be utilized in setting up of projects inrural areas.KVIC being the single NodalAgency at the National levelwill coordinate with the identified implementing agencies,i.e., KVlBs, DlCs and others. KVIC will carry out tasksenvisaged in the forward and backward linkages, includinge{racking, web management, publicity, physical verificationof units, organizing EDP, awarenesi camps, workshopsand exhibitions. Hence, KVIC will require utilizing majorshare of the allocation under forward and backwardlinkages. However, KVIC willensure that it will reserve andallocate at least 25 o/o of the total allocation under Foruvardand Backward linkages, under the Scheme to DlCs ofdifferent participating States depending on the demand andextent of implementation. This money will be released toDlCs, only after obtaining an undertaking from the StateGovernment regarding full utilization of the funds already

(c)


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TfrIIC ACTIVITIES 4ND PROGRAI',IIUIES I


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T{IIIC ACTTVTTIES AND PROGRAMMES(k) After the rerease of Bank finance either parfly or fuily, Bankwill submit M19in Money claim to ttre'Oesignat"j NoO.tBranch of the State/Region.

rn the case of projects financed bythe Regionar Rurar Banks,the.financing branches wi, submit tne Mirgin'ff,'Jnl, Clri*to their Head office. The Head office, in"turn,'wiilsubmitthe consoridated craims to the designated Nodar Branch oftheir sponsoring Bank'ln the_case of projects financed by srDBr, the guiderines issuedbv srDBr for rerease of roan/margin ,on"yiliio" r"iri*"..Though the margin money (subsidy) wi, be reteased by thedesignated Nodal Branch oitne eani,rivtd D6;r-thl tinarauthority to either accept lhe project/craim or r"l";i'oaseoon the parameters of the Scheml.!gf-1leo grounds for rejections sha, be rnaintained by KVrc/KVIBs/ DlCs. There will be a separate system ofacknowledging grievances or complaints anO a montnfyreport wi, be prepared on grievances l compiaint","tlir.oand the status / action taken for their. redressal.(m) once the Margin.Money is released in favour of the loanee,it.shourd be kept in the Term Deposit Re;J;ioit'r,rlJi"r*at branch reverin the name of the beneficiary/rn.iiirlt'n. r.r"interest will be paid on the TDR and no interest wilr becharged on loan to the corresponding amount of fDn.(n) since Margin Money isto be provided in the form of subsidy(Grant), it will be credited to the Borrowers fo"n ,r.orntafter three years from the date of first disbursement to theborrower/ institution, by the Bank.(o) ln case the Bank,s advance goes ,,bad,, before the threeyear period, du_e- to reasons, beyond the control of thebeneficiary, the Margin Money wiil te adjusted ny ine eanr


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The EDp wiil be conducted through KVrc, KVIB Trainingcenters and Accredited rraining -centres'run uy ClntratGovernment, NSIC, national level EntrepreneurshipDevelopment rnstitutes (EDrs), such as rndian rnstitute ofEntrepreneurship (llE), State Governments, Banks,reputed NGOs., and other organizations / insiituiion.,identified by the Government from time to time. EDp ismandatory for ail the pMEGp beneficiarier, "r""pitho."eneficiaries who have undergone EDp eariierof durationnot less than two weeks.13. Physical verification of pMEGp UnitsKVtc wiil make 1o0o/o physicar verification of the ".tr"tstabrishment and working status of each of the uniG, setup under pMEGp_ including those set up through t(\/lg,and Drcs, through state GJvernment agencies and/or byoutsourcing the work to professionallnstitute, n"ringexpertise in this area. Banks, Dlcs and l(/lBs will coordinateand assist KVrc in ensuring 100 o/o prrvsicar verin."iion.KVrc wifi submit quarterry re-portsto ri" fuiniriry; ffiffi.14.. .Awareness Camps

14'1 KVlc and Drcs wiil organize awareness.camps, in crosecoordination with each other and KVrBs to poputarize anoto educate potentiar beneficiaries about tne scneme uotnin rural and urban areas. The awaren"." "rrp. *irr'i'i*rr"participation from the unemproyed men .no *o*"n withspecial focus.on special categories like SC, SI OgC,Physicelty chailenged, Ex-servicemen, Minorities, wornen,etc. KVlc/KVr Bs/D r cs wiil obta in the req uisite inform ationt1 this regard from state rever organizations rike sc/srCorporations, AWWA, NyKS, reputed f.fObrlriEmployment exch.anges. ln each disirict t*o .rrp. *ilfbe.pernritted, one by KVrc in coordination with'con[in"oKVIB and another by Dtc. A committee wiil rnortri.t ff"beneficiaries and send them for training "" *arG Hrbsfor project formuration and to Bank for i.r""t "rr,.tion

,IIIIC ACT ES AND PROGBAilIMES Ktttc acrivnrcs AND PBaGRAMIuIES14.2 Marketing Support(a) Marketing support.for the products, produced by theunits under PMEGP may be provided through KVIC'sMarketing Sales outlets, as far as possible, subjectto certain conditions.(b) Besides the above, KVIC will arrange Exhibitions,Workshops at District/ State, Zonall National andlnternational levels, Buyer-Seller Meets, etc., for the

benefit of PMEGP beneficiaries.15. RegistrationRegistration with the KVIC/ KVlBsl State DlCs under theScheme is voluntary. This is al5o free of any charge.16. Submission of ReportBeneficiary will submit quarterly report about production,sales, employment;wages paid etc. to the State/RegionatDirector'of the KVIC/KVI,B/DIC for subrhission to theMinistry of MSME.17. Monitoring of PMEGPThe Ministry of MSME is the controlling and monitoringagency for implementation of the scheme


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VI,Salient points on prime Minister,s EmploymentGeneration programme (euestions and Answers)

What is the primary objective of the pMEGp?To generate employment opportunities in the country throughsetting up new micro enteiprisels there any minimum qualification prescribed for theeneficiary?Yes. Vlll standard o-ass.folseJting up of project costing aboveRs' 10 rakh in the manufacturing ie;toi lno above Rs. 5 lakhin the business/service r""toi. 6ir,e,liise there is no specificeducational qualification.Whb can avail loan under the Scheme?lndividuars, institutions, p'oduction co-operative societies,charitable trusts and Self H"lp drorprlDoes KVrc/KvrB/Drc direcry fina nce u nder the scheme?No. KVIC provides Margin Money only through bank underPMEGP.what are the conditions to be furfitted to become etigibrefor assistance under the S;h;;;;--The unit should be new.

KIIIC ACTItr/4INES AND PRO,GRAMMES KIIIC ACTIVITIES AI{D PROGRANIMESWhat is a rural area?Any area classified as Village as per the revenue record ofthe State/Union Territory, irrespective of population.It will also include any area even if classified as town,provided its population does not exceed 20,000 persons.What is Village lndustry?Any Village lndustry including Coir based projects (except thosementioned in the negative list) located in the rural area whichproduces any goods or renders any service with orwithout theuse of power and in which the fixed capital investment perhead of a fulltime artisan orworker i.e. Capital Expenditure onworkshop/ workshed, machinery and furniture divided by fulltime employment created by the project does not exceedRs.1.00 lakh in plain areas and Rs 1.50 lakh in hilly areas.What is the quantum of Margin Money available todifferent categories of beneficiaries?Beneficiaries from urban areas are eligible tor 21o/o MarginMoney.Beneficiaries from rural areas are eligible tor 35o/o MarginMoney.What is the percentage of entrepreneuds own contributionfor availing assistance?lnstitutions, lndividuals and Self Help Groups beneficiariesof North Eastern Region are to contribute 5o/o of project cost.They may be both from rural and urban areas.Who are not eligible to avait assistance under this Scheme?Existing UnitsUnits that have already availed Subsidy under any otherscheme of the Central and State GrivernmentsUnits financed by two agencies, namely bank and financialinstitutionPartnership firm and private limited companyEntrepreneur intending to start such activity that finds a placein the negative list.

6.

1.

2.

7.

3.{4.

Per capita investment (capitalworkshop and machinery'per,91*td not be more than ns i.OO1.50 lakh in hitty area.expenditure in workshedle m ployee/worker/a rtisan)lakh in plain areas and Rs

10.

Pass vlll standard if project cost is above Rs 10 lakh formanufacturing enterprise and more tnan Rs 5 rakh for serviceenterprise. Othenryise no qualification required.Any industry except those included in negative list.


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TfiTTC ACTTW ES ATTD PROGRAMMES11' rs it necessary that the apprications under pMEGp areto be sponsored by any dovernment Department or byKVIC, KVIB or DtC?/ No' The beneficiary can directty approach bank atong withlig{ner project proposar or submit apprication to KVrc/KVrB/glC ! any case application has to be approved by theTask Force.12' How the roan apprications are processed in the banks?/ Banks will appraise the projects tephnically and economicallyand take their own credit decision on the basis of ,iroitity.13. Whether the_existing units are erigibre for assistanceunder the scheme?r'No

14' Can the beneficiary receive the Margin Money direc*yfrom the KVIC?/ N-o, th9 margin money is paid to the financing bank on beharfof the beneficiarv through the nodal Uani. "15. Can the financing bank pass on the ilargin Moneydirecfly to the beneficiaryir' No, the bank can not pass on the margin money to thebeneficiary in cash.16. How the bank utitizes the Margin iloney?{ On receipt of margin money, the bank will keep it in fixeddeposit in the name of the beneficiary tor *r-rlrye"rr "nohen adjust the amount in the roan account of the beneficiaryon receipt of adjustment letter from the KVIC.1 7' ls there any ceirin_g on project cost for difftrent categoriesof enterprises? lf so, whit is the amount?r' Yes. The maximum cost of the projecuunit admissibte undermanufacturing sector is Rs.25' laih./ The maximum cost of the projecuunit admissibre underbusiness/service sector is Rs. 1b lakh.

KIIIC ACTII/ITIES AI{D PROGRAfuTMES18. Does the proiect cost include working capital?./ Yes, the project cost includes one cycle of working capital.19. Does the project cost include cost of land?./ No20. What is the loan amount to be disbursed by the bank?./ 95% of the project cost has to be disbursed forthe beneficiariesof NE States.21. Banks? Who else finance under this scheme in additionto Public Sector/ All Regional Rural Banks,/ Co-operative banks and Private SectorScheduled CommercialBanks approved by State LevelTask Force Committee./ Small lndustries Development Bank of lndia22. Describe the significant features of the Scheme../ The applicant can submit his/her application to KVIC/KVIB/DIC or bank as per his/her convenience.,/ Beneficiary will be selected by District LevelTask Force.,/ The quantum of monetary benefit in terms of Margin Moneyis highest compared with any other self-employment schemein operation.,/ lt is a banker-friendly scheme; because bankercan take hisown decision based on viability of the project.,/ The scheme is also borrower-friendly since the borrowercan directly submit his/her application.,/ KVIC extends forward and backward linkages also.23. Who are eligible for setting up projects under PMEGP?./ lndividuals,/ Registeredinstitutions/ Production co-operative societies{ Charitable trusts and./ Self Help Groups.


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KIIIC ACTIVITTES AND PROGBAIUINTES24. Whether bank can charge interest on full amountfinanced, that is, 95% of project cost?./ No, Bank can charge interest on 60 or 70 percent of theproject cost (totalfinance-margin money) depending on thetype of beneficiaries.25. Whether Bank interest is payable on Margin Money putin STD in favour of beneficiary?,/ No. Financing bank on receipt of Margin Money will keepthe amount in STD in favourof the beneficiary; but no interestis payable on that amount as the bankwill not charge intereston the margin money amount.26. Whether the entire Margin Money can adjust againstbank finance if the borrowers do not avail entire bankfinance?./ No, if sanction is accorded under Cash Credit (CC),borrowers will have to avail 100o/o CC limit at least once inthree years and the average use of CC limit should be notless than 75o/o of CC limit. lf the borrower fails to do so,proportionate amount of Margin Money will be adjustedagainst loan amount and the balance amount is tO bereturned to KVIC.27. Whether EDP training is compulsory for PMEGPbeneficiary?/ Yes, after sanction of the project by the bank and beforerelease of first installment of loan.28. Beneficiaries who are exempted from undergoing EDPtraining?,/ lf they have already undergone such training of at least 2weeks duration such beneficiary need not underEo furtherEDP training.29. Whether registration of unit with KVIG is compulsoryunder the Scheme?,/ No

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IWIC ACTNITIES AND PROGRANINIES37. ls there any specific form for Margin Money claim?./ Yes. There is a specific Margin Money claim format. Thefinancing bank needs to fill up the format and submit to thenodal bank for Margin Money.38. What are other documents needs to be submitted bybeneficiary along with Margin Money claim papers?,/ Copy of sanctioned letter.'/ Copy of EDP training certificate,/ Copy of project,/ Copy of ledger abstract of loan'disbursement.,/ Copy of ledger abstract in support of deposit of owncontribution../ Copy of feasibility appraisal note of financing bank.'/ copy of certificate in support of Educationar euarification./ Certified copy of Cast and community certificate/ Copy of certificate in support of residence

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KIIIC ACTIVITIES AI{D PROGRATUTDIEStx

KVIC DEPARTMENTAL TRAINING 9ENTRESNORTH ZONEMulti Disciplinary Training Centre, Gandhi Darshan, Rajghat,New Delh i- 11 0002 Phone: 01 1 - 23392T OB, 233923g3, Fax:011-23392708Ch. Charan Singh Multi Disciplinary Training Centre, p.O.Panjokhera, Dist. Muzatl arnagar- 247 44S, phone : 0 1 392-225356, Fax: 0 1 392 -2653288Multi DisciplinaryTraining Ceptre, p.B. No. 27, Rampur Road,Haldwani, Dist. Nainital-263139, phone& Fax OS}46-22C416Multi Disciplinary Training Centre, Uppar Adhoiwala,Sahastradhara Road, Dehradun- Z4BOO1, phone: 0135-27 801 86 Fax: 01 35-2627 241

EAST ZONEMulti Disciplinary Training Centre, Udyogpuri, p. O. Khandagiri,Near Gandamunda Chhak, Bhubaneswar- 751030, Fhone& Fax: 0674-2350724Dr. Rajendra Prasad Multi Disciplinary Training Centre,Post.- B.V. College, Sheikhpura, patna- 8OOO14, phone:06 1 2- 222851 1, 2224956 F ax: 06 1 2-2ZZBS 1 1Multi Disciplinary Training'Centre, Vidyapith Road, AbhoyAshram Campus, Post- Birati, Kolkata- 700051 phone: 033-25390554 Fax: 033-2539201 1.SOUTH ZONE

Multi Disciplinary Training Centre, post- Nadathara, Trichur-680751, Phone & Fax: 0487-2310681Multi DisciplinaryTraining Centre, Doovani Nagar, Near FCIGodown, Bangalore-560016, phone & Fax: OgO-256S029sCentral Village Pottery lnstitute, post- Khanapur-591302,Dist. Belgaum Phone& Fax. 08336- 222232.

KIIIC ACTIV ITIES AT{D PRO GRANITVIESCentral Palmgur and Palm Products lnstitute, No. 44,Kumarappapuram, Post. Madhavaram Milk Colony,Chennai- 600051, Phone & Fax: 044-25555402.WEST ZONEC.B. Kora lnstitute of Village lndustries, Shimpoli Road,Borivali(W), Mumbai-400092, Phone & Fax: 022-28981105.Dr. B.R. Ambedkar lnstitute of RuralTechnology & Man.agementand lnstitute of Renewable Energy, TryambakVidya Mandir,N a s h i k- 4222 1 3, P h one : 0253-2280362, 228057 6, 2281 049,Fax: 0253- 2280362G. N. Multi Disciplinaiy Training Centre, Agar Road, Dahanu,Thene-401601, Phone & Fax: 02528-222626.Central Bee Research and Training lnstitute, 1153,Ganeshkhind Road, Pune-411 016, Phone: 020- 25675865Mahaima Gandhi lnstitute for Rural lndustrialisation,Manganwadi, Wardha- 442001, Phone & Fax: 07152-240328.

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KIIIC ACTIVITIES AND PROGRALTMESx

KVIC NON.DEPARTMENTAL TRAINING CENTRESKhadi Gramodyog Vidyalaya, Tam ulpurAnchalik GramdanSangh, P.O. Kumarikata, Dist. Baksa- 781360, ( Assam)Phone & Fax :03624-23504, Gram- GRAMDAN.Multi Disciplinary Training Centre, Arunachal pradesh SevaSangh, Doimukh-791 112, Dist. Papumpare,(ArunachalPradesh) Phone: 0360-2277395, 2100694 Fax 0360-222721A.KhadiGramodyog Vidyalaya, Gram Nirman Mandal, SarvodayaAshram, P.O. Spkhodeora, Dist. Gaya - 80S106 (Bihar)Khadi Gramodyog Vidyalaya, KhadiAshram, post. Dhanna,Dist. Ambala- 134201 (Haryana) Phone: 07194-T11OA,Gram: KHADIASHRAM.Khad i Gramodyog Vdyalaya, (Texti Ie Chem istry), KarnatakaKhadi Gramodyog Samayukta Sangh, p.O. Bengarim,Hubli- 580023 Dist. Dharwad, Phone-0936-286193, bram:FEDERATION.Kasturba lvlahila Khadi Gramodyog Vidyalaya, GandhiNational Memorial Soeiety, Aga Khan palace, pune-411006, Phone: 0212-684054, 680250.Khadi Gramodyog Vidyalaya, Rajasthan Khadi Sangh,Post- Shivdaspura, Jaipur- 303903, Phone: 014294-T221.Khadi Gramodyog Vidyalaya, Thmilnadu Sarvodaya Sangh,P.O. Veerapandi, Tirupur, Pin-641605 (TamilNadu) phone:0421 -7 10049, Gram : VASTRALAYA.Dr. J.K. Kumarappa lnstitute of Rural Technology andDevelopment, Gandh i Niketan Ashram, Pin- 626Z 02 (TamilNadu), Phone: 04549-26325, Gram: VIDYALAYA.Khadi Gramodyog Vidyalaya, Kshetriya Shri GandhiAshram, P.O. Sevapuri, Dist. Varanasi- 221403, Phone:0542-630205 (O), 630346(R) Gram: ASHRAM.

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Khadi Gramodyog Vidyalaya, Kshetriya Shri GandhiAshram, P.O. Patranga, Dist. Barabanki- 225408, Phone:05271-31304.Khadi Gramodyog Mdyalaya, P.O' Surapur,A!!a.r!U! Pi:lAmbedkar Nagar- 224112, Phone: 05271-88743, 44158(0),45579 (R). 'New Weavers Vdyalaya, Chenganachery Social ServiceSociety, P.O. Mallapally (West), Dist. Patnanamthitta-OSSSaS lferala) Phone : 047 3.1821 1 8, Fax: 0481 -422540'New Weavers Vidyalaya, Cannanore Sarvodaya Sangh,P.O. Tikkoti, Meladi, Pin-673529 (Kerala), Phone: 0490-231983 (O), 0497-851154 ( R).New Weavers Mdyalaya, Kerala Sarvodaya Sangh, Post-Civil Station, Gandhi Ashram, Calicut- 673020, Phone:u95-371701.,'KhadiGramodyog Vidyataya, Gandhi Samarak Gram SevaKendrm, P.O. l,{athiittuiunnam, North Paravur, Dist'Emakulam-68351 3, Phone: 0484442232, 444449'Regional Pottery Training Gentre, Gramodaya Sangh, P'O'Bhldrawati, Dist. Chandrapur-4429O2, Phone: 07175'66029(0), 65029 ( R), Gram: GRAMODAYA SANGH'Carcass RecoveryTraining Centre, Paschim Bengal KhadiKendra, Mllage- Chandmari, Post. Gayeshpur, Dist' Nadia-741234,, Phone: 829393.Sharad Samagra Gramin Mkas Sanstha, Carpentry andBlacksmithy Training Centre, lngolw Chowk, Near Dr'Adalakhiya'i Hospital, Malgujaripura, Salu (Kate), Wardha'Phone: 07152-82027,82028 H.O- 46087,43067 'SamagraMkasParishad,WoollenHosieryTrainingCentre'Near iavin Gatla Mandi, Sitapur Road, Lucknow- 226020,Phone: 0522-324679(0), 456698 ( R)'

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21. lajasthan V.idyapur Kul, Gokut Bhai Bhatt Khadi9 ll1 gOvog Research ana fia in'ing-Vi jy. rayr, p. O. .,1 h aOoi(HP), Dist. Udaipur, phone: OZeSil-iiZA.Rural. Food lndustry Training tnstitute, Shiksha MandalPremises, Near Sewagram Riitw"y St"tion, Dist. Wardha_442001.Sambalpur Silk and Gramodyog Samiti, National RuralResource Education and Training-C.niiu, At- Kharumunda,P.O.-Tainsar, Dist. Deogarh- ZAOjf qOrissa), phone: HeadOffice- 06641-6253, Reg. Omce_ Oa{i_zZtZO.

. : xlKVI BOARD'S TRAINING CENTRES

Shri T.S. Gokhale Khadi and V.f . Training an{ Researc.hlnstitute, M.p. Khadian!!r poarO,.eOSt. V,iryr;,gri tG;tn Froster, tridore- asl0to; ph*.ii biir_ssszro.!.1nOm1!e eaper lnstitute, K.B. Joshi Ro.d,'pun"- OrrOOU,Phone:lZl}gZT3A3Fdx,OZtZeZZgOi,Oram::F|ANDpApAR.

rlvrc ACTlVrTrEs ANp PROGRAMMES KIIIC ACTNTTIES AT{D PROGR,,J|'ITVIESxll

List of other Agencies who can Assist ApplicantsField Offices of KVIC and its State officesKVI BoardsDistrict lndustries Centre (DlC)

Banks/Financial I nstitutions.KVI FederationDepartment of Women and Child Development (DWCD),Nehru Yuva Kendra Sangathan (NYKS), The Army WivesWelfareAssociation of lndia (AWWA) and panchayati RajlnstitutionsNGOs having at least five years experience and expertisein Project Consultancy in Small Agro & Rural lndustrialPromotion and Technical Consultancy Services, RuralDevelopment, Social Welfare having requisite infrastructureand manpower and capable of reaching Village and Taluklevel in the State or Districts. NGOs should have beenfunded by State or National Level GovernmentAgency forany of its programmes in the preceding 3 years period.Professional I nstitutions/Iechnical Colleges recog nized byGovernmenUUniversity and University Grants Commission(UGC)/ All lndia Council for Technicat Education (AICTE)having department for vocational guidance or technicalcourses providing skill based training like lTl, RuralPolytechnic, Food Processing Training lnstitute, etc.Certified KVI institutions aided by KV|C / KVIB providedthese are in category A+, A or B and are having requiredinfrastructure, manpower and expertise for the role.Departmental and Non-Departmental Training Centres ofKVIC/ KVlBs.

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KIl C. ACTIV ITIES AND PRO GR AIIMESxi) Micro, sma[ and Medium Enterprises Deveropmentrnstitutes (MSME- Drs), MSME Toor Rooms and rechnicarDevelopment Centres, under tne ,ominislratir" i""iL, "rffice of Development Commissioner, MSME.xi) Nationar smar,rndustrie.s.corporation,s (NSrc) offices,Technical Centres, Training bentres, tncubators andTraining cum lncubation Ceirtres (TlCs) ,"t ,p in eeeMode.Nationar rever Entrepreneurship Deveropment rnstitutes rikeNational lnstitute for Entrepr"ri"r*nip lnd smail BusinessO"y:looln"nt (N I ESBU D), Nationat tn&itute for Micro, S mailand Medium Enterprises (NTMSME) and rndian rnrtitrt" otllli:ry"r:yl:lip (t I E), G uwa nati Jir Jei the adm in istrativecontrol of Ministry of MSME, their branches and thelnlrelreneurship Devetopmeni Centres (EDCs) *t ;p ;;their Partner lnstitutions (pls). ,U.dyam.i.Mitras empanefle9-y1!"r, Rajiv Gandhi UdyamiMitra .Yojana of Ministry of MSME.

xii)

xiv)xv) PMEGp.Federation, wheneverformed.


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6ffi qenrarrlrsrFmr{ Qilftf{rerqq llARE YOU AN UNEMPLOYEDDesirous to start Your own venture

DO APPROACHKVIC/KVIB/DIC AND AVAIL BENEFIT OFPRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME(PMEGP)

Margin Money suRport35% in Ruralareg ;',.ii: Margjn Money supPort25Vo in Urban area,,t:i

Tel. & Fax : (0p,8..$.-2) 22E546, e:mai I : ath u bakvp@yah oo,co. i nOR

NAGALAND KHADI & VILLAGE INDUSTRIES BOARDNEAR NEW SECRETARIAT COMPLEX : KOHIMA-7970017 A370-2270013 &DISTRICT OFFICES OF NAGALAND KVI BOARDOR

DIRECTORATE OF INDUSTRIES & COMMERCE, GOVT. OFNAGALAND & DISTRICT INDUSTRIES CENTRESOR

NATIONALIZED I REGIONAL RURAL BANKS

the khadi and village industries commission promoting ivory product - sukanya kadyan

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