Khadi and Village Industries Commission (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

• To promote Khadi in rural areas
• To provide employment
• To produce saleable articles
• To create self-reliance amongst the poor
• To build up strong rural community

Prime Minister’s Employment Generation Programme (PMEGP)

Prime Minister’s Employment Generation Programme (PMEGP) was launched in 2008 to replace The Rural Employment Generation Programme (REGP) scheme. Ministry of MSME launched PMEGP which is a credit linked subsidy program. The prime reason for launching this scheme is to create employment in rural and urban areas across the nation.

Under PMEGP, the beneficiaries are required to invest their own contribution of certain percentage of the project cost to avail subsidy. Mentioned below is a tabular representation of the amount required to be deposited by the beneficiaries:

Levels of Funding under PMEGP

Note: The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.

The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.

The balance amount of the total project cost will be provided by Banks as term loan

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Launched in 2005, SFURTI is a Scheme of Fund for Regeneration of Traditional Industries Ministry of MSME. The primary objective of SFURTI is to organize the traditional artisans and industries into groups to make them competitive and provide them with long-term sustainability. The financial support provided under SFURTI for any specific project shall be subject to maximum of Rs 8 crore. Institutions of the Central and State Governments and semi-Government institutions, Non-Government organizations (NGOs), Panchayati Raj institutions (PRIs), etc. can apply for this scheme.

Interest Subsidy Eligibility Certificate (ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is the major funding source for the Khadi programme. This scheme is applicable for all registered institutions of KVIC. This scheme was introduced to mobilize funds from banking institutions to bridge the gap in the actual fund requirement and its availability from budgetary sources. Under this scheme, funding is provided at a concessional rate of interest of 4% per annum for working capital purposes as per the requirements.

Market Promotion Development Assistance (MPDA)

Market Promotion Development Assistance (MPDA): This scheme is launched to provide services like market promotion and development assistance for Khadi industries.  The aim of this scheme is to ensure increased earnings for artisans.

Under the former MDA scheme, financial assistance was distributed amongst Artisans (25%), selling institutions (45%) and producing Institutions (30%). It goes 20% for selling institutions and 40% for both artisans and producing institutions.

 Khadi Reform and Development Programme (KRDP)

Khadi Reform and Development Programme (KRDP) is formed for employment generation, enhancing the earning of artisans and ensuring the positioning of Khadi considering the present needs of Khadi industry. The main focus of this scheme is on Repositioning of Khadi and linking to market requirements, providing selective subsidy and enhanced remuneration.

Beekeeping – The Honey Mission

Honey Mission aims to improve the livelihoods of the rural communities. It works around five dynamics that include:

• It’s an income generating activity
• Medicinal and food value of honey
• Supports agricultural activities
• Contributes to forests conservation efforts
• Facilitates healthy linkages between biodiversity towards sustainable livelihoods

 Market Development Assistance (MDA)

MDA scheme is promotion assistance for development of Khadi which is paid at 20% on production. Approximately 25% of MDA is paid to the institution from which 25% is given to artisans as incentive and 30% is offered to institution for production and 45% for marketing purposes. Under MDA scheme, financial assistance of 25% is reserved for payment among weavers and spinners as an additional incentive through their post/bank office account.

KVIC also implements various other promotional activities for the development of different village industries, such as handmade paper, polymer, agro and chemical based, bee-keeping and other forest related activities. KVIC loans are offered by various financial institutions at attractive interest rates.

Just after its establishment, KVIC took over All India Khadi and Village Industries Board. KVIC operates via its network of zonal offices located in Delhi, Bhopal, Bangalore, Kolkata, Mumbai (HO) and Guwahati.

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