KHADI &VILLAGE INDUSTRIES'

ACTIVITIES AND PROGRAMMES

STATE OFFICE KHADI AND VILLAGE INDUSTRIES

COMMISSION
Paona Bazar, Imphal, Manipur - 795 001
A MISSION
1. To create employment opportunities in the non-farm sector in the
rural areas.
2. To produce saleable articles or to provide services for which there
is effective demand.
3. To support rural development in its widest sense and to improve the
quality of life.
IT'S MOTTO
1. To ensure employment at door steps.
2. To ensure production by the masse
3. To harness human technology.
4. To preserve environment.
5. To impart dignity of labour.
6. To manage with low capital,
7. To rejuvenate rural economy.
8. To act as a bulwark against migration to city schemes.
9. To promote decentralized economic activities.
10. To invite participation of women in economicc activity.
 KHADI AND VILLAGE INDUSTRIES COMMISSNN
A PROFILE
Khadi and Village Industries Commission (KVIC) is a statutory body created by an
Act of Parliament (No. 61 of 1956 as amended by Act No. 12 of 1987). It was
established in April 1957 as KVIC and it took over the work of the former All India
Khadi and Village Industries Board set up in 1950. It is engaged in the task of
promoting and developing Khadi and Village Industries (KVI) with a view to creating
employment opportunities in the rural areas, thereby strengthening-the rural
economy. It functions under the administrative control of Ministry of Micro, Small
and Medium Enterprises, Government of India.

OBJECTIVES :
The board objectives of the KVIC are :
The social objective of providing employment;
The economic objective of producing saleable articles, and
The wider objective of creating self-reliance amongst the peopte and building
up a strong rural community spirit.

FUNCTIONS :
KVIC has been charged with the function of planning, promotion,
organization and implementation of programmes for the development of Khadi and
other village industries in the rural areas in coordination with other agencies
engaged in rural development.

Its functions also comprise building up of a reserve of raw materials and

implement for supply to producers, creation of common service facilities for
processing of raw materials as semi-finished goods and provision of facilities for
marketing of KVI products. It organizes training of artisans engaged in Khadi and
Village Industries.

KVIC is also charged with the responsibility of encouraging and promoting

research in the production techniques and equipments employed in the KVI sector
and providing facilities for the study of the problems relating to the same. It also
promotes the use of non-conventional energy, bio-fertilizer and other organic
products.
(2) KVIC Activities and Programme

Further, KVIC is entrusted with the task of providing financial assistance to institutions
and persons who are engaged in the development and operation of Khadi and Village
Industries and guiding them through supply of designs, prototypes and other technical
information.

IMPLEMENTATION OF KHADI PROGRAMME :

KVIC promotes and extends financial support for implementation of Khadi Programme
through registered institutions and cooperative societies. Besides it implements Khadi
Programme departmentally and through States Khadi and Village Industries Boards. In the
process of implementation of the programme, KVIC extends support in the form of loan and
grant under capital expenditure and Working Capital in subsidies rate of interest. Such
activities generate employment opportunities for the traditional artisans, thereby promote
traditional artistic skills and products for which the country enjoys pride recognition.
Different types of Khadi-Cotton, Silk, Woolen and mixture of any two or all fibres play a
vital role in providing gainful employment and also play a crucial role in our economy. These
units are mostly labour intensive and the abundant labour force available in our country
caters to their needs. Basides, these unites do not require large capital investment, too. They
also have the advantage of absorbing high rate of traditional skill.

INCENTIVES FOR KHADI ARTISANS :

I. ARTISANS' WELFARE TRUSTS
To support and safeguard the future of the artisans working under Khadi, the KVIC
has constituted Artisan's Welfare Trusts wherein 12% wages contribution is collected from
artisans and 12% is paid through production. The funds are managed by the Trusts providing
security of savings of Khadi artisans.

II. JANASHREE BIMA YOJANA SCHEME :

All Khadi Artisans have been covered under Janashree Bima Yojana Scheme. This
Scheme provides insurance cover against death and disability besides children educational
allowances are also eligible under this Scheme.

III. WORKSHED FOR KHADI ARTISANS :

KVIC has introduced a new scheme for the Khadi artisans for providing them
workished. Underthis scheme KVIC will provide 75% of the cost of construction of workshed,
subject to a maximum of Rs. 25,000/- as grant. The remaining 25% will be borne by the
Khadi Institutions with whom the artisans have been working.
 (3)
KVIC Activities and Programme

VILLAGE INDUSTRIES :
The KVIC promotes village industries programme through State Khadi and
Village Industries Boards (KVIB), DIG, NGOs, individuals and Self Help Groups under
banking system with 25% to 35% margin money under Prima Minister Employment
Generation Programme (PMEGP). Besides, the KVIC also promotes rural industries
through cluster approach, common facility centre* and other feasible way to generate
rural employment.

PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME :

Besides other programme, KVIC has been implementing Prime Minister's
Employment Generation Programme (PMEGP), popularly known as Margin Money
Scheme, and cluster development programme. Ministry of Micro, Small and Medium
Enterprises has launched the PMEGP Scheme on 15* August 2008 for generation of
employment opportunities both in rural and urban areas in the country. The main
channels of the scheme are the banks-public sector scheduled commercial banks,
Regional Rural Banks and selected Financial Institutes private sector scheduled
commercial banks and Cooperative Banks, (see for details under PMEGP).

SPECTRUM OF LINKAGE :
Success of any scheme depends upon the support of strong backward and
forward linkage. PMEGP cannot be an exception to this thumb rule. PMEGP
is equilpped with different linkage to ensure smooth functioning of the scheme.

ENTREPRENEURSHIP DEVELOPMENT PROGRAMME :

KVIC provides training to identified PMEGP enterpreneurs for
Enterpreneurship Skill Development covering managerial, accounting and marketing
management through accredited institutions, free of cost.

AWARENESS PROGRAMMES :
KVIC conducts Awareness camps in each district wherein extens. te
dissemination of information about the self-employment opportunities through PMEGP
is made to the potential beneficiaries and common man as well. Officials from KVIC,
KVIBs, DICs, Banks, NGOs, Gaon Panchayat, rural entrepreneurs etc. take part to
enthuse people to go for self-employment. Besides, participants are apprised of
scheme procedure.
(4) Activities and Programme

WORKSHOPS :

District and Block level workshop provide a platform to present various nuances of the
scheme to the participants. Representative from KVIC, KVIB, District Administration, Banks, NGOs,
Intellectuals, media etc. used to take part in it. It enriches them with more and accurate information
related to the Scheme. This also facilitates threadbare discussion on various issues, which result in
concerted effort. Successful entrepreneurs of the areas share their experience as part of motivation
for new entrepreneurs.

PEOPLE'S EDUCATION PROGRAMME :

This programme is organized at the district and block level involving students of schools,
colleges and universities, the future citizens of India, besides intellectuals, prominant personalities,
district administration, bankers, press and media etc. The programme has two parts-Essay and
Debate competitions on rural entrepreneurship development with the involvement of student
community, the potentials entrepreneurs of tomorrow, and the society in general through Seminar.
In the process, student communities are involved through their participation in Essay and Debate
competitions to inculcate in them the spirit of self-reliance and employment generation for
sustainable socio-economic progress. With the participation of intellectuals, prominent personalities,
district administration, Bankers, press and media at the seminar, a concerted zeal and support
towards need for rural industrialization, thereby rural employment generation is thrust upon.

EXHIBITIONS :

Exhibitions are windows that show various products and their utility, besides expanding
oppornutity to the producers and service providers to feel the pulse of ever demanding
customer/customers. As a part of the market promote the KVIC organizes National, Zonal, State
and District level exhibitions for KVI products, providing scope for free participant of PMEGP
entrepreneurs to display, demonstrate and sell their products.

ESIGN DEVELOPMENT AND PACKAGING :

KVIC has also given importance on product development, design intervention and packaging
both in Khadi and Village Industries. Accodingly, suitable schemes have been launched for the
benefit of KVI artisans and enterpreneurs.
KVIC Activities and Programme (5)

TRAINING :
KVIC provides various trainings for skill development, capacity building etc.
through their department as well as recognised training centres.
KVIC also provides peripatetic training through various training institutions and
NGOs. Under the scheme trainings are imparted at field level by deputing expert to the
field.

RESEARCH AND DEVELOPMENT:

In order to make village industries competitive and self-sustaining, KVIC provides
thrust on Research and Development, and could achieve a lot. KVIC has taken up
Research and Development projects with Nation's most prestigious institutes, IITs.

CLUSTER DEVELOPMENT PROGRAMME :

KViC initiated development of cluster in 1980 and 1990 to provide a wider
coverage of artisans, particularly artisans engaged in traditional industries under its
preview. In April 1998,, KVIC introduced a scheme of common facilities centre (CFC) for
providing support services to cluster. The CFCs were to extent support for raw materials
supply, improved tools and implements, supply of spare parts, technical know-how and
marketing linkage etc. to the cluster. In June 1998, KVIC decided to revive the cluster
scheme as part of KVI's celebration programme of Golden Jubilee of India's Independence
"Abhyudaya".

MARKETING :
KVIC has been playing a catalyst role by providing supporting inputs to its NGOs,
institutions for marketing of KVI products manufactured by them. The institutions have
been provided funds for opening sales outlets and conducting exhibition-cum-sale to sell
their products with an aim to penetrate in the domestic and global market.
KVIC has launched three common brand names i.e. Khadi, Sarvodaya and Desi
Ashar for making KVI products globally competitive through quality driven brands. Khadi
brands is for Khadi products. Sarvodaya brand for village industry products. Desi Aashar
for food products. Sarvodaya product range consists of toilets soaps, pickles, agarbati,
honey etc. and is aimed at domestic consumer markets. Khadi brand exclusive products
like essential oil, high fashion designer garments, herbal products etc. were developed to
cater to the high end market as well as export.
(6) KVIC Activities and Programme

NON-CONVENTIONAL ENERGY :

In order to meet up the challage of fuel requirement, implementation of

Non-Conventional Energy Programme, identification of potential beneficiaries,
setting up of Biogas plants under the technical guidance of Rural Energy
Technicians are taken up on extensive way. There is provision of Central
Government subsidy in order to encourage and to support village entrepreneurs.

RURAL INDUSTRIES SERVICE CENTRE (RISC] :

It is the common facility unit, which aims to provide infrastructural support

and necessary services to the local units to upgrade their production capacity, skills
and market promotion and backward forward linkage to Khadi & V. I. activities in a
cluster, services like raw material support, skill upgradation, training, quality control,
testing facilities, design and product development in order to strengthen the rural
clusters. It is implementation by various agencies like KVIC, KVIBs, Khadi & V.I.
institutions, federations and NGOs.

RURAL INDUSTRIES CONSULTANCY SERVICE CELL (RICS):

To make PMEGP scheme more effective and accessible to the new

entrepreneurs, KVIC has launched Rural Industrial Consultancy Service (RICS)
under which first generation entrepreneurs are provided services, such as project
formulation, co-ordination with banks, technical backup, marketing support etc.
Such incentives will help new entrepreneurs to set up projects, which will be more
viable and better manageable.

SFURTI :

Ministry of Micro, Small and Medium Entreprises, Government of India has

introduced a Scheme called "Scheme of Fund for Regeneration of Traditional
Industries (SFURTI). Under this scheme KVIC will support at least 500 traditional
artisans in a cluster in skill upgradation, CFC and marketing through reputed NGOs.
This is a 5-years project for overall growth of the traditional industry and for
generating sustainable income for artisans. KVIC is the Nodal Agency for the
programme. KVIC is implementing 79 SFURTI clusters in the country.
KVIC Activities and Programme (7)

SCIENCE & TECHNOLOGY :

KVIC has close liaison with pr emier Academic and Research
Organizations like NTs, IISc, NITs, NIFT, NID etc. for technological
support in the areas of development of efficient processes, products,
efficient tools/ equipments, etc.

Mahatma Gandhi Institute of Rural Industrialization (MGIRI) has

been set up at Wardha in technical collaboration with Indian Institute
of Technology (IIT), New Delhi, which started functioning to improv e
the quality parameters of various pr oducts to accelerate the pace of
growth and development of the sect or in the competitive economy.

E-CHARKHA :
One of the major achievements of KVIC is development of one,
two and eight-spindle NMC E-charkha, in collaboration with flexitron
organisation, Banglore, where the spinner while plying the charkha,
rotates, an armature/ dynamo which in turn charges a battery. It
allows the spinner to light her dwelling place, listen to transistor and
re-charge cell phone.

KVIC has its Central Office at Mumbai. It has 38 State and

Divisional Offices, 6 Zonal Offices at New Delhi, Bhopal, Kolkata,
Guwahati, Bangalore, and Mumbai, 15 Departmental and 23
Non-Departmental Training Centres and a number of accredited
Training Centres, 13 Departmental Sales Outlets and 6 Silver Plants.
Its partner agencies include 33 States and Union Territories Khadi
and V.I. Boards, over 5600 registered institution (NGOs), over 7050
retail sales outlets and 27 public sector banks with a network of more
than 50000 branches, besides Regional Rural Banks and
Co-operative Banks spread all over the rural areas in the country.
During 2005-07 total sales of Khadi and Village Industries products
was over Rs. 17,562 cores and employment generation for 8 8 .92
lakhs persons. Khadi sector provid es a range of diverse products
ranging from hand-oven and hand-spu n textiles of cotton, silk, woolen
and polyvastra and various village industry products. KVIC has, thus,
been playing a very significant role in rural industrialization and
employment generation in the country.

…………………..
(8) KVIC Activities and Programme

(II)

A FEW CONCEPTS OF KHADI AND VILLAGE INDUSTRIES

1. KHADI :
"Khadi" means any cloth oven on handloom in India from cotton, silk or woolen
yarn handspun in India or from a mixture of any two or all of such yarn

2. VILLAGE INDUSTRY :
"Village industry" means any industry located in Rural Area which produces any
goods or renders any services with or without the use of power and in which fixed
investment per head of any artisan or a worker do not exceed of Rs. 1,00,000/- in plain
areas and Rs. 1,50,000/- in hilly areas.

3. POLYVASTRA:
"Polyvastra" means any cloth woven on handloom in India from yarn handspun
in India from a mixture of man made fibre with either cotton, silk or wool or with any
two or all of them or from a mixture of man made fibre yarn handspun in India with
either Cotton, Silk or Woolen yarn handspun in India or with any two or all such yarn.

4. RURAL AREA :
"Rural Area" means -
i) Any area classified as Village as per the revenue records of the
State/U.T. irrespective of population.
ii) It also includes an area even if classified as town, provided its
population does not exceed 20,000.
KVIC Activities and Programme (9)

(Ill)

AN IIIUSTRATIVE LIST OF VILLAGE INDUSTRIRS

GROUP -1: MINERAL BASED INDUSTRY:

1. Cottage Pottery Industry.
2. Lime Stone, Lime Shell and other lime products industry.
3. Stone cutting, crushing and engraving for Temples and Buildings.
4. Utility articles made out of stone.
5. Slate and Slate pencil making.
6. Manufacture of Plaster of Paris.
7. Utensil washing powder.
8. Fuel briquetting.
9. Jewellery out of Gold, Silver, Stone, Shell and synthetic materials.
10. Manufacture of Gulal, Rangoli.
11. Manufacture of Bangles.
12. Manufacture of Paints, Pigments, Varnishes and Distemper.
13. Manufacture of Glass Toys.
14. Glass Decoration-Cutting, Designing and Polishing.
15. Gem Cutting.

GROUP- II: FOREST BASED INDUSTRY :

16. Handmade paper.
17. Manufacture of Khata.
18. Manufacture of Gums and Resins.
19. Manufacture of Shellac.
20. Cottage Match Industry, Manufacture of Fire works and Agarbatties.
21. Bamboo and cane work.
22. Manufacture of paper cups, plates, bags, and other paper containers.
23. Manufacture of exercise book binding, envelop making, register, making,
including all stationery items made of paper.
24. Khus tattis and broom making.
25. Collection, processing and packing of forest products.
26. Photo framing.
27. Manufacture of Jute Project (under fibre industry)
(10) KVIC Activities and Programme

GROUP-HI: AGRO BASED AND FOOD INDUSTRY :

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. Palmgur making and other palm products industry.
34. Manufacture of cane gur and Khandsari.
35. Indian Sweet Making.
36. Raswanti-Sugarcane juice catering unit.
37. Bee-keeping.
38. Fruits and vegetable processing, preservation and canning including
pickles.
39. Ghani oil industry.
40. Menthol oil.
41. Fibre other than coir.
42. Collection of forest plants for fruits for medicinal purpose.
43. Processing of maize and ragi.
44. Pith work, manufacture of pith mats and garlands etc.
45. Cashew processing.
46. Leaf cup making.
47. Milk products making unit.
48. Cattle feed, poultry feed making.

GROUP - IV: POLYMER AND CHEMICAL BASED INDUSTRY :

49. Flaying curing and tanning of hides and skins ancillary industries 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. Horn and Bone including ivory products.
KVIC Activities and Programme (11)

54. Candle, Camphor and sealing wax making.

55. Manufacture of packing items of plastic.
56. Manufacture of Bindi.
57. Manufacture of Mehandi.
58. Manufacture of Essential Oil.
59. Manufacture of Shampoos.
60. Manufacture of Hair Oil,
61. Detergents and washsing powder manufacturing (non-toxic).

GROUP-V: ENGINEERING AND NON-CONVENTIONAL ENERGY :

62. Carpentry.
63. Blacksmithy.
64. Manufacture of Household aluminium utensils.
65. Manufacture and use of menure and mathane (Gobar) Gas from
cow dung and other waste products (Such as flesh of dead
animals, night soils, etc.).
66. Vermiculture and waste disposal.
67. Manufacture of paper pins, clips, safety pins, stove pins etc.
68. Manufacture of decorative bulbs, bottles, glass, etc.
69. Umbrella Assembling.
70. Solar and wind energy implements.
71. Manufacture of Handmade utensils out of brass.
72. Manufacture of Handmade utensils out of copper.
73. Manufacture of Handmade utensils out of Bell Metal.
74. Other articles made out of Brass, Copper and Bell Metal.
75. Production of Radios.
76. Production of cassette player whether or not fitted with Radio.
77. Production of cassette recorder whether or not fitted with Radio.
78. Production of Voltage stabilizer.
79. Manufacture of Electronic clocks and alarm time pieces.
80. Carved wood and artistic furniture making.
81. Tin Smithy.
(12) KVIC Activities and Programme

82. Motor winding.

83. Wire net making.
84. Iron Grill making.
85. Manufacture of rural transport vehicles such as handcarts, bullock carts,
small boats, assembly of bicycles, cycle rickshaw, motorized carts etc.
86. Manufacture of musical instruments.

GROUP- VI: TEXTILE INDUSTRY (EXCLUDING KHADI):

87. Polyvastra.
88. Manufacture of Lok Vastra cloth.
89. Hosiery.
90. Tailoring and preparation of readymade Garments.
91. Batick Works.
92. Toys and Doll Making.
93. Thread Balls and Woollen Balling Lacchi making.
94. Embroidery.
95. Manufacture of Surgical Bandages.
96. Stove wicks.
97. Carpet weaving.
98. Shawl weaving.
99. Traditional Dresses, (97 to 99 only for North Eastern Region).
100. Pashimina.

GROUP- VII: SERVICE INDUSTRY :

101. Laundry.
102. Barber.
103. Plumbing.
104. Servicing of Electric Wiring and electronics domestic appliances and
equipments.
105 Repairs of diesel engines pump sets etc.
106. Tyre vulcanizing unit.
107. Agriculture servicing for sprayers, insecticides, pump sets etc.
KVIC Activities and Programme (13)

108. Hiring of sound system like loud speaker, amplifier, milk etc.
109. Battery charging.
110. Art Board painting.
111. Cycle repair shop.
112. Masonry.
113. Band Troupe.
114. Motorized local boat (Fibre glass) for Goa only.
115. Motor cycle to ply as Taxi (For Goa only).
116. Musical Instruments (For Goa only).
117. Motor cycle taxi.
118. Dhabas (Not serving liquor).
119. Tea Stall.
120. Iodized Salt.

****
(14) KVIC Activities and Programme

(IV)

NEGATIVE LIST OF ACTIVITIES

Activities under Negative list (not eligible for assistance under PMEGP) are:
a) 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 like Beedi/Pan/Cigar/Cigarette etc., any Hotel or Dhaba or sales
outlet serving liquor, preparation/ producing tobacco as raw materials, tapping of
toddy for sale.

b) Any industry/business connected with cultivation of crops/plantation like Tea,

Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal
Husbandry like Pisciculture, Piggery, Poultry, Harvester machines etc.

c) Manufacturing of Polythene carry bags of less than 20 microns thickness and

manufacture of carry bags or containers made of recycled plastic for storing,
carrying, dispensing or packaging of food stuff and any other item which causes
environment a problems

d) Industries such as processing of Pashmina Wool and such other products like
hand spinning and hand weaving, taking advantage of Khadi Programme under the
purview of Certification Rules and availing sales rebates.

e) Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands, House
Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw).
KVIC Activities and Programme (15)

(V)

PRIME MINISTER’S EMPLAYMENT GERATION PROGRAM

(PMEGP)

1. INTRODUCTION :
The Ministry of Micro, Small and Medium Enterprises (MoMSME) has launched a
new credit linked subsidy programme called Prime Minister's Employment Generation
Programme (PMEGP) on 15 August 2008 by merging the Prime Minister's Rojgar Yojana
(PMRY) and the Rural Employment Generation Programme (REGP) that were in operation
till 31 March. 2008, for generation of employment opportunities through establishment of
micro enterprises both in rural and urban areas. PMEGP is a central sector scheme
administered by the MoMSME. The Scheme is implemented by Khadi and Village
Industries Commission (KVIC) as the nodal agency at the National level. At the State level,
the Scheme is implemented through the State KVIC Directorates, State Khadi and Village
Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The
Government subsidy under the Scheme is being routed by the KVIC through the identified
Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts.

2. OBJECTIVES:
(i) To generate employment opportunities both in rural and urban areas of
the country through setting up of new self-employment ventures/projects/
micro enterprises.
(ii) To bring together widely dispersed traditional artisans/rural and urban
unemployed youth and give them self-employment opportunities to the
extent possible, at their place,.
(iii) To provide continuous and sustainable employment to a large segment of
traditional and prospective artisans and rural and urban unemployed youth
in the country, so as to help arrest migration of rural youth to urban areas.
(iv) To increase the wage earning capacity of artisans and contribute to
increase in the growth rate of rural and urban employment.
(16) KVIC Activities and Programme

3. QUANTUM AND NATURE OF FINANCIAL ASSISTANCE :

Categories of beneficiaries under PMEGP Beneficiary's Rate of Subsidy

contribution (of project cost)
(of project cost)

Area (location of project/unit) ______________________________ Urban Rural

General Category ________________________ 10% __________ 15% 25%
Special (including SC/ST/OBC/ 05% 25% 35%
Minorities/Women, Ex-servicemen, Physically
handicapped, Hill and Border areas etc.
All categories of beneficiaries of States 05% 25% 35%
of North Eastern Region________________________________________________

4. CEILING LIMIT OF PROJECT COST :

a) The maximum cost of the project/unit admissible under manufacturing
sector is Rs. 25 lakhs.
b) The maximum cost of the project/unit admissible under business/ service
sector is Rs. 10 lakhs.
Note:
c) Project cost will include Capital Expenditure and one cycle of Working
Capital.
d) Cost of the land should not be included in the Project cost.
e) Cost of the ready built and long lease or rental work shed/workshop can
be included in the project cost subject to restricting such cost to be
included in the project cost calculated for a maximum period of 3 years
only.
f) Projects without Capital Expenditure are not eligible for financing under
the Scheme.
g) Projects costing more than Rs. 5 lakhs, which do not require working
capital, need clearance from the Regional Office or Controller of the
Bank's Branch.
KVIC Activities and Programme (17)

5. ELIGIBILITY CONDITIONS OF BENEFICIARIES :

a) Age: Any individual above 18 years of age.
b) Educational Qualification: VIII standard pass for setting up of project costing
above Rs. 10 lakhs in the manufacturing sector and above Rs. 5 lakhs in the
business/service sector. Otherwise there is no specific educational qualification.
c) Family Income: No ceiling of family income for assistance for setting up projects
under PMEGP.
d) New Project: Assistance under the Scheme is available only for new projects
sanctioned specifically under the PMEGP.
e) Self Help Groups: Provided that they have not availed benefits under any other
Scheme.
f) Institutions: Registered institutions.
Production Co-operative Societies, and Charitable Trusts.
g) Non-eligible units: Existing Units and the units that have already
availed subsidy under any other scheme of the Central and State
Governments are not eligible. Partnership firm is also not eligible.

5.1 OTHER ELIGIBILITY CONDITIONS :

i) Beneficiary is to produce a certified copy of the caste/community
certificate or relevant document issued by the competent authority
in the case of other special categories to the concerned branch of
the Banks along with the Margin Money (subsidy) Claim.
ii) Institutions are to append a certified copy of their bye-laws to the
Margin Money (subsidy) Claim, wherever necessary.
iii) PMEGP is applicable to all new viable micro enterprises, including
Village Industries projects except activities indicated in the negative
list of Village Industries.

iv) Existing/old units are not eligible.

NOTE:
(1) The Institutions/Production Co-operative Societies/Trusts specifically registered as
such and SC/ST/OBC/Women/Physically Handicapped/Ex-Servicemen and
Minority Institutions with necessary provisions in the bye-laws to that effect are
eligible for Margin Money
(18) KVIC Activities and Programme

(Subsidy) for the special categories. However, such(institutions etc. not registered as
belonging to special categories, will be eligible for Margin Money (Subsidy) for
general category.
(2) Only one person from one family is eligible for obtaining financial assistance for
setting up of projects under PMEGP. The 'family' includes self and spouse.

5. IMPLEMENTING AGENCIES :
5.1 Nodal and Implementing Agency at the National level: The Khadi and Village Industries
Commission (KVIC), Mumbai which is implementing the Scheme is the single nodal
agency at the national level.

5.2 Implementing Agencies at the State Level: (a) State Directorates of KVIC (b) State Khadi
and Village Industries Boards (KVIBs) and (c) District Industries Centres in rural areas. In
urban areas, District Industries Centres (DICs) are the only implementing agency. KVIC
will coordinate with (KVIBs/DICs and monitor performance in rural and urban areas) KVIC
will coordinate with State KVI Bs/State DICs and monitor performance in rural and urban
areas. KVIC and DICs will also involve NSIC, Udyami Mitras empanelled under Rajiv
Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj Institutions and other NGOs of
repute in identification of beneficiaries under PMEGP.

5.3 OTHER AGENCIES :

The nodal agencies will associate a number of other agencies in the implementation of
PMEGP. Some of such agencies are*
i) Field Offices of KVIC and its State Offices.
ii) State KVI Boards
iii) District Industries Centre (DIC)
iv) Banks and Financial Institutions.
v) KVI Federation
vi) Department of Women and Child Development (DWCD), Nehru Yuva
Kendra Sangathan (NYKS), Army Wives Welfare Association of India
(AWWA) and Panchayati Raj Institutions (PRI)
vii) Experience NGOs
KVIC Activities and Programme (19)

viii) Government, UGC or AICTE recognized Professional Institutions/

Technical Colleges.
ix) Selected Certified KVI institutions.
x) KVIC/KVIB Training Centres.
xi) Micro, Small and Medium Enterprises Development Institutes (MSME-
DIs), MSME Tool Rooms and Technical Development Centres.
xii) National Small Industries Corporation's (NSIC) Office, Technical
Centres, Training Centres, Incubators and Training cum Incubation
Centres (TICs).
xiii) Indian Institute of Entrepreneurship (HE), Guwahati
xiv) Udyami Mitras empanelled under Rajiv Gandhi Udayami Mitra
Yojana.
(Further details can be seen under "List of Other agencies who can assist
applicants").

6. FINANCIAL INSTITUTIONS
(i) All Public Sector Banks.
(ii) All Regional Rural Banks.
(iii) Co-operative Bank and Private Sector Scheduled Commercial Banks
approved by State Level Task Force Committee
(iv) Small Industries Development Bank of India (SIDBI).

7. IDENTIFICATION OF BENEFICIARIES :
7.1 The identification of beneficiaries will be done at the district level by a Task Force
consisting of representatives from KVIC/KVIB and DICs and Banks.
7.2 The Task force would be headed by the concerned Deputy Commissioner.
7.3 The Bankers should be involved right from the beginning to ensure that bunching of
applications is avoided.
7.4 The applicants, who have already undergone training of at least 2 weeks under
Entreneurship Development Programme (EDP) / Skill Development Programme
(SDP) / Entrepreneurship cum Skill Development Programme (ESDP) or Vocational
Training (VT), will be allowed to submit applications directly to Banks. However, the
Banks will refer the application to the Task Force for its consideration.
(20) KVIC Activities and Programme

7.5 Exaggeration in the cost of the project with a view only to availing higher amount
of subsidy should not be allowed.
7.6 The selection process should be through a transparent, objective and fair
process. The Panchayati Raj Institutions should be involved in the process of
selection

8. BANK FINANCE
8.1 Bank will sanction 95% of the project cost to the beneficiary/institution and
disburse full amount suitably for setting up of the project.
8.2 Bank will finance Capital Expenditure in the form of Term Loan and Working
Capital in the form of cash credit. Bank can also finance project in the form of
composite Loan consisting of Capital Expenditure and Working Capital. The
amount of Bank Credit will be ranging between 60-70% of the total project cost
after deducting 25-35% of margin money (subsidy) and owner's contribution of
5% from beneficiaries. This scheme will thus require enhanced allocations and
sanction of loans from participating banks. The Reserve Bank of India (RBI) has
already issued guidelines to the Public Sector Banks to ensure 20% year to year
growth in credit to MSME Sector. SIDBI is also strengthening its credit
operations to micro enterprises so as to cover 50 lakhs additional beneficiaries
over five years beginning 2006-07, and is recognized as a participating financial
institution under PMEGP.
8.3 Though Banks will claim Margin Money (subsidy) on the basis of projections of
Capital Expenditure in the project report and sanction there of, Margin Money on
the actual availment of Capital Expenditure only will be retained and excess, if
any, will be refunded to KVIC, immediately after the project is ready for
commencement of production.
8.4 Working Capital component should be utilized in such a way that at one point of
stage it touches 100% limit of Cash Credit within three years of lock in period of
Margin Money and not less than 75% utilization of the sanctioned limit. If it does
not touch aforesaid limit, proportionate amount of the Margin Money is to be
recovered by the Bank/Financial Institution and refunded to the KVIC at the end
of the third year.
8.5 Rate of interest and repayment schedule: Normal rate of interest shall be
charged. Repayment schedule may range between 3 to 7 years after an initial
moratorium as may be prescribed by the concerned bank/financial institution.
Banks have been routinely insisting on credit guarantee coverage irrespective of
the merits of the proposal. This approach needs to be discouraged.
 KVIC Activities and Programme (21)

9. VILLAGE INDUSTRY
Any Village Industry including Coir based projects (except those mentioned in the negative
list) located in the rural area which produces any goods or renders any service with or
without the use of power and in which the fixed capital investment per head of a full time
artisan or worker i.e. Capital Expenditure on workshop/workshed, machinery and furniture
divided by full time employment created by the project does not exceed Rs 1.00 lakh in
plain areas and Rs 1.50 lakh in hilly areas.

10. RURAL AREA

(i) Any area classified as Village as per the revenue record of the State/Union
Territory, irrespective of population.
(ii) It will also include any area even if classified as town, provided its population
does not exceed 20,000 persons.

11. MODALITIES OF THE OPERATION OF THE SCHEME

(i) Project proposals will be invited from potential beneficiaries at district level through
multi-media publicity by KVIC, KVIBs and DICs.
(a) Sponsoring of project by any agency is not mandatory. The beneficiary can directly
approach Bank/Financial Institution along with his/her project proposal. However, the
applications received directly by the Banks will be referred to the Task Force for its
consideration.
(b) Proposals can be sponsored by KVIC/KVIBs/DIC/Panchayat Karyalayas etc.
(c) The Task Force headed by the concerned Deputy Commissioner scrutinized the
applications and based on the experience, technical qualification, and skill, viability of the
project etc., the Task Force shortlists suitable ones and calls for an interview of the
applicants separately for rural and urban areas. The selected candidates are provided
project formulation guidance and orientation by KVIC or KVIBs or DICs who also assist and
guide them in project formulation and submission to the concerned Bank in the area. The
applicants may also approach any other agencies listed under pare 5.3.
(d) KVIC will identify the Nodal Banks at State level in consultation with State Governments
and will forward the list to all the implementing agencies.
(22) KVIC Activities and Programme

(ii) The release of funds to the implementing agencies will be in the following manner:-
(a) Government will provide funds under PMEGP to KVIC, the nodal implementing
agency. KVIC will in turn, within a period of 15 days of receipt of the money from
the Government, place the margin money funds with the implementing Banks at
the State level in their respective accounts in accordance with the targets allocated
to each implementing agency. CEO, KVIC will convey the margin money targets
allotted to each State to the Principal Secretaries/ Secretaries
(lndustries)/Commissioners (Industries) simultaneously. The target among the
Districts in the State will be assigned by the State Level Bankers Coordination
Committee (SLBCC). SLBCC will ensure that targets are evenly distributed within
each district. The State-wise targets in respect of KVIC/KVIBs will be made
available by KVIC to SLBCC where overall allocation of district-wise targets will be
decided. Any modification of the targets will be permitted only with the concurrence
of the Ministry.
(b) KVIC will place the margin money amount with the Banks involved in the
implementation of the scheme in accordance with the targets allocated to the
implementing Banks in the State/District. DICs, in close coordination with Banks,
will ensure that at least 50% of the total margin money allocated to them will be
utilized in setting up of project in rural areas.
(c) KVIC being the single Nodal Agency at the National level will coordinate with the
identified implementing agencies, i.e., KVIBs, DICs and others. KVIC will carry out
tasks envisaged in the forward and backward linkages, including e-tracking, web
management, publicity, physical verification of units, organizing EDP, awareness
camps, workshops and exhibitions. Hence, KVIC will require utilizing major share
of the allocation under forward and backward linkages. However, KVIC will ensure
that it will reserve allocate at least 25% of the total allocation under Forward and
Backward linkages, under the Scheme to DICs of different participating States
depending on the demand and extent of implementation. This money will be
released to DICs, only after obtaining an undertaking from the State Government
regarding full utilization of the funds already provided under the erstwhile PMRY
Training and Premotivational campaigns. Any unspent balance available under the
training and contingencies of erstwhile PMRY Scheme will be utilized for training
and relevant expenditure under PMEGP. DICs will submit monthly utilization report
to KVIC in this regard.
(d) The Task Force will hold quarterly meeting with the Banks at district level to
KVIC Activities and Programme (23)

review the status of the project proposals. Wherever the projects are rejected, the
concerned bank will furnish shortcomings/reasons to the implementing agencies
concerned and KVIC/KVIBs/DICs will ask the applicants concerned to provide
additional information/documents, if required. The concerned representatives of KVIC,
KVIBs and DICs, will provide assistance to the applicants in this process. Since the
Bank's representative will also be a member of the Task Force, it needs to be ensured
that bank sanctions maximum number of projects, cleared by the Task Force.
Chairman of the District Task Force will review the performance of Banks and the loan
repayment/recovery status in the quarterly review meetings.
(e) Banks will take their own credit decision on the basis of viability of each
project. No collateral security will be insisted upon by Banks in line with
the guidelines of RBI for projects involving loan up to Rs. 5 lakhs in respect
of the projects cleared by the Task Force. However, they will appraise
projects both technically and economically after ensuring that each project
fulfills inter alia the criteria of
(i) Industry
(ii) Per Capita Investment
(iii) Own Contribution
(iv) Rural Areas and
(v) Negative List
It is essential that the applications cleared by the District Task Force also fulfill these
requirements at that stage itself so as to avoid delays in approval of loans in Banks.
(f) Once the project proposals are received by KVIC, KVIBs, DICs or Banks,
the details of such proposals are to be fed in the web based application
tracking system with a unique registration number for each beneficiary at
the District level by the KVIC State Office/KVIBs/D!Cs to enable the
entrepreneurs to track their application status at any point of time. Till such
time the e-tracking system becomes fully operational disaggregated data
in respect of progress of each application, assistance availed by
beneficiaries belonging to special categories (category wise), employment
details, etc., will be maintained by KVIC/KVIBs/DICs and the data will be
reconciled every month in KVIC. The status of such reconciliation will be
reviewed in the Task Force meetings and in the review meetings at KVIC.
Separate colour code is given to application form and applications/claim
forms of Margin Money through KVIC/KVIBs/DICs. This is done to help the
 (24) KVIC Activities and Programme

beneficiaries and the processing/sanctioning functionaries to identify and monitor

the progress of implementation.
(g) Once the project is sanctioned and before the first instalment of the
Bank Finance is released to the beneficiary, Bank will inform the State/
Regional Office of the KVIC/KVIBs/DICs, as the case may be, for
arranging EDP training to the beneficiary, if he/she has not already
undergone such training. If he/she has already undergone such training
of at least 2 weeks duration, such beneficiary need not undergo further
EDP training.

(h) First instalment of the loan will be released to the beneficiary only after
completion of EDP training.

(i) After the successful completion of EDP training the beneficiary will
deposit with the bank, the owner's contribution. Thereafter, the bank
will release first instalment of the Bank Finance to the beneficiary.

(j) Projects sanctioned will be declared ineligible for Margin Money assistance if the
EDP training is not completed.

(k) After the release of Bank finance either partly or fully, Bank will submit Margin
Money claim to the designated Nodal Branch of the State/Region. In the case of
projects financed by the Regional Rural Banks, the financing branches will
submit the Margin Money Claim to their Head Office. The Head office, in turn,
will submit the consolidated claims to the designated Nodal Branch of their
sponsoring Bank.
In the case of projects financed by SIDBI, the guidelines issued by SIDBI for
release of loan/margin money will be followed. Though the margin money
(subsidy) will be released by the designated Nodal Branch of the Bank, KVIC/DIC
is the final authority to either accept the project/ claim or reject, based on the
parameters of the Scheme.
Detailed grounds for rejections shall be maintained by KVIC/KVIBs/DICs. There
will be a separate system of acknowledging grievances or complaints and a
monthly report will be prepared on grievances/complaints received and the
status/action taken for their redressal.

(m) Once the Margin Money is released in favour of the loanee, it should be kept in
the Term Deposit Receipt of three years at branch level in the name of the
beneficiary/Institution. No interest will be paid on the TDR and no interest will be
charged on loan to the corresponding amount of TDR.

(n) Since Margin Money is to be provided in the form of subsidy (Grant), it will
KVIC Activities and Programme (25)

be credited to the Borrowers loan account after three years from the date of first
disbursement to the borrower/institution, by the Bank.
(o) In case the Bank's advance goes "bad" before the three year period, due to reasons,
beyond the control of the beneficiary, the Margin Money will be adjusted by the Bank to
liquidate the loan liability of the borrower either in part or full.
(p) In case any recovery is effected subsequently by the Bank from any source whatsoever,
such recovery will be utilized by the Bank for liquidating their outstanding dues first. Any
surplus will be remitted to KVIC.
(q) Margin Money will be 'one time assistance', from Government. For any enhancement of
credit limit or for expansion/modernization of the project, margin money assistance is
not available.
(r) Margin Money assistance is available only for new projects sanctioned specifically under
the PMEGP. Existing units are not eligible under the Scheme.
(s) Projects financed from two different sources are also not eligible for Margin Money
assistance.
(t) Bank has to obtain an undertaking from the beneficiary that, in the event of objection by
KVIC/KVIB/DIC, the beneficiary will refund the Margin Money kept in the TDR or
released to him after three years period.
(u) Each beneficiary shall prominently display the following sign-board at the main entrance
of his/her project site. Bank/KVIC/KVIB/DIC are to ensure it.

............................................. (Unit Name)

Financed By .......................................(Bank), District Name
Under
Prime Minister's Employment Generation
Programme (PMEGP) Khadi and Village Industries
Commission (Ministry of MSME, Govt, of India)
(26) Activities and Programme

12. ENTREPRENEURSHIP DEVELOPMENT PROGRAMME (EDP):

12.1 The objective of EDP is to provide orientation and awareness pertaining to various
managerial and operational functions like finance, production, marketing,
enterprise management, banking formalities, bookkeeping, etc. The duration for
EDP will be two weeks (10 working days). This will also include interaction with
successful rural entrepreneur, banks as well as orientation through field visits.
The EDP will be conducted through KVIC, KVIB Training Centers and Accredited
Training Centres run by Central Government, NSIC, national level
Entrepreneurship Development Institutes (EDIs), such as Indian Institute of
Entrepreneurship (ME), State Governments, Banks, reputed NGOs, and other
organizations/institutions, identified by the Government from time to time. EDP is
mandatory for all the PMEGP beneficiaries, except those beneficiaries who have
undergone EDP earlier of duration not less than two weeks.

13. PHYSICAL VERIFICATION OF PMEGP UNITS :

KVIC will make 100% physical verification of the actual establishment and working
status of each of the units, set up under PMEGP, including those set up through
KVIBs and DICs, through State Government agencies and/or by outsourcing the
work to professional institutes having expertise in this area. Banks, DICs and
KVIBs will coordinate and assist KVIC in ensuring 100% physical verification.
KVIC will submit quarterly reports to the Ministry of MSME.

14. AWARENESS CAMPS :

14.1 KVIC and DICs will organize awareness camps, in close coordination with each
other and KVIBs to popularize and to educate potential beneficiaries about the
Scheme both in rural and urban areas. The awareness camps will involve
participation from the unemployed men and women with special focus on special
categories like SC, ST, OBC, Physically challenged, Ex-servicemen, Minorities,
Women, etc. KVIC/ KVIBs/DICs will obtain the requisite information in this regard
from State level organization like SC/ST Corporations, AWWA, NYKS, reputed
NGOs and Employment exchanges. In each district two camps will be permitted,
one by KVIC in coordination with concerned KVIB and another by DIC. A
Committee will shortlist the beneficiaries and send them for training as well as
RICS for project formulation and to Bank for project sanction.
KVIC Activities and Programme (27)

14.2 MARKETING SUPPORT :

(a) Marketing support for the products, produced by the units under PMEGP
may be provided through KVIC's Marketing Sales outlets, as far as possible,
subject to certain conditions.
(b) Besides the above, KVIC will arrange Exhibitions, Workshops at
District/State, Zonal/National and International level, Buyer-Seller Meets, etc., for
the benefit of PMEGP beneficiaries.

15. REGISTRATION :
Registration with the KVIC/KVIBs/State DICs under the Scheme is voluntary. This
is also free of any charge.

16. SUBMISSION OF REPORT :

Beneficiary will submit quarterly report about production, sales, employment;
wages paid etc. to the State/Regional Director of the KVIC/ KVIB/DIC for
submission to the Ministry of MSME.

17. MONITORING OF PMEGP :

The Ministry of MSME is the controlling and monitoring agency for implementation
of the scheme.
(28) KVIC Activities and Programme

(VI)

SALIENT POINTS ON PRIME MINISTER'S EMPLOYMENT

GENERATION PROGRAMME
(Questions and Answers)

1. What is the primary objective of the PMEGP ?

To generate employment opportunities in the country through setting up
new micro enterprise.

2. Is there any minimum qualification prescribed for the beneficiary ?

Yes. VIII standard pass for setting up of project costing above Rs. 10
lakh in the manufacturing sector and above Rs. 5 lakh in the business/
service sector. Otherwise there is no specific educational qualification.

3. Does KVIC/KVIB/DIC directly finance under the Scheme ?

No. KVIC provides Margin Money only through bank under PMEGP.

4. What are the conditions to be fulfilled to become eligible for

assistance under the Scheme ?
The unit should be new.
Per capita investment (capital expenditure in workshed/workshop and
machinery per employee/worker/artisan) should not be more than
Rs.1.00 lakh in plain areas and Rs. 1.50 lakh in hilly area. Pass VIII
standard if project cost is above Rs. 10 lakh for manufacturing enterprise
and more than Rs. 5 lakh for service enterprise. Otherwise no
qualification required.
Any industry except those included in negative list.

5. What is a rural area ?

Any area classified as village as per the revenue record of the 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.

6. What is Village Industry ?

Any Village Industry including Coir based projects (except those
mentioned in the negative list) located in the rural area which produces
KVIC Activities and Programme (29)

any goods or renders any service with or without the use of power and
in which the fixed capital investment per head of a full time artisan or
worker i.e. Capital Expenditure on workshop/workshed, machinery and
furniture divided by full time employment created by the project does
not exceed Rs. 1.00 lakh in plain areas and Rs. 1.50 lakh in hilly areas.

7. What is the quantum of Margin Money available to different

categories of beneficiaries ?
Beneficiaries from urban areas are eligible for 25% Margin Money
Beneficiaries from rural areas are eligible for 35% Margin Money.

8. What is the percentage of entrepreneur's own contribution for

availing assistance ?
Institutions, Individuals and Self Help Groups beneficiaries of North
Eastern Region are to contribute 5% of project cost. They may be both
from rural and urban areas.

9. Who are not eligible to a avail assistance under this Scheme ?

Existing Units
Units that have already availed Subsidy under any other scheme of
the Central and. State Governments.
Units financed by two agencies, namely bank and financial institution
Partnership firm and private limited company.
Entrepreneur intending to start such activity that finds a place in the
nagative list.

10. Is it necessary that the applications under PMEGP are to be

sponsored
by any Government Department or by KVIC, KVIB or DIC ?
No. The beneficiary can directly approach bank along with his/her
project proposal or submit application to KVIC/KVIB/DIC. In any case
application has to be approved by the Task Force.

11. How the loan applications are processed in the banks ?

Banks will appraise the projects technically and economically and take
their own credit decision on the basis of viability.

12. Whether the existing units are eligible for assistance under the
scheme ?
No.
(30) KVIC Activities and Programme

13. Can the beneficiary receive the Margin Money directly from the
KVIC ? No, the margin money is paid to the financing bank on behalf
of the beneficiary through the nodal bank.

14. Can the financing bank pass on the Margin Money directly to the
beneficiary ?
No, the bank can not pass on the margin money to the beneficiary in
cash.

15. How the bank utilizes the Margin Money ?

On receipt of margin money, the bank will keep it in fixed deposit in the
name of the beneficiary for three years and then adjust the amount in
the loan account of the beneficiary on receipt of adjustment letter from
the KVIC.

16. Is there any ceiling on project cost for different categories of

enterprises ? If so, what is the amount ?
Yes, 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.

17. Does the project cost include working capital ?

Yes, the project cost includes one cycle of working capital.

18. Does the project cost include cost of land ?

No.

19. What is the loan amount to be disbursed by the bank ?

95% of the project cost has to be disbursed for the beneficiaries of NE
States.

20. Banks ? Who else finance under this scheme in addition to Public
Sector ?
All Regional Rural Banks.
Co-operative banks and Private Sector Scheduled Commercial Banks
approved by State Level Task Force Committee. Small Industries
Development Bank of India.
KVIC Activities and Programme (31)

21. 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 Level Task Force.
The quantum of monetary benefit in terms of Margin Money is highest
compared with any other self-employment scheme in operation.
It is a banker-friendly scheme; because banker can take his own
decision
based on viability of the project.
The scheme is also borrower-friendly since the borrower can directly
submit his/her application.
KVIC extends forward and backward linkages also.

22. Who are eligible for setting up projects under PMEGP ?

Individuals
Registered institutions Production
Co-operative societies Charitable
trusts and Self Help Groups.

23. Whether bank can charge interest on full amount financed, that is,
95% of project cost ?
No. Bank can charge interest on 60 or 70 percent of the project cost
(total finance-margin money) depending on the type of beneficiaries.

24. Whether Bank interest is payable on Margin Money put in STD in

favour of beneficiary ?
No. Financing bank on receipt of Margin Money will keep the amount in
STD in favour of the beneficiary; but no interest is payable on that
amount as the bank will not charge interest on the margin money
amount.

25. Whether the entire Margin Money can adjust against bank finance if
the borrowers do not avail entire bank finance ?
No, if sanction is accorded under Cash Credit (CC), borrowers will
have to avail 100% CC limit at least once in three years and the
average use of CC limit should be not less than 75% of CC limit. If the
borrower fails to do so, proportionate amount of Margin Money will be
adjusted against loan amount and the balance amount is to be
returned to KVIC.
(32) KVIC Activities and Programme

26. Whether EDP training is compulsory for PMEGP beneficiary ?

Yes, after sanction of the project by the bank and before release of first
installment of loan.

27. Beneficiaries who are exempted from undergoing EDP training ?

If they have already undergone such training of at least 2 weeks
duration such beneficiary need not undergo further EDP training.

28. Whether registration of unit with KVIC is compulsory under the

Scheme ?
No.

29. How beneficiary can apply for benefit under the Scheme ?
Beneficiary can apply in prescribed format along with his/her scheme
either to KVIC/KVIB/DIC or to Bank.

30. What is the procedure for selection of beneficiary under PMEGP ?

On receipt of applications KVIC/KVIB/DIC/Bankwill scrutinize
applications and place in the District Level Task Force Committee for
final selection. Applications of selected beneficiaries will be forwarded
by concerned department to the bank for sanction of loan under the
Scheme.

31. Whether bank can outright reject an application ?

No. Bank has to appraise the scheme and its viability both technically
and economically. If the scheme is not found viable, bank is to
communicate the same in writing to the concern department with
reason of rejection.

32. Whether financing bank can claim Margin Money from KVIC/KVIB/
DIC?
No. financing bank needs to submit its Margin Money claim papers to
nodal bank along with required documents within 15 days from the
date of disbursement of first instalment of loan.

33. Whether bank can submit Margin Money claim after sanctioning
loan ?
No. Upon sanctioning the project financing bank has to inform KVIC/
KVIB/DIC as the case may for imparting EDP training along with a
copy of the sanction letter.
KVIC Activities and Programme (33)

34. When bank can disburse loan ?

Bank can disburse loan after the beneficiary successfully completes EDP
training and deposit his/her own contribution.

35. Is there any application form for sponsoring for EDP training by
bank ?
Yes. Bank has to send application form of beneficiary in prescribed form
to KVIC/KVIB/DIC as the case may be duly signed by the bank along with
the sanctioned letter.

36. Is there any specific form for Margin Money claim ?

Yes. There is a specific Margin Money claim format. The financing bank
needs to fill up the format and submit to the nodal bank for Margin
Money.

37. What are other documents needs to be submitted by beneficiary

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 own contribution.
Copy of feasibility appraisal note of financing bank.
Copy of certificate in support of Educational Qualification.
Certified copy of Cast and community certificate.
Copy of certificate in support of residence.
(34) KVIC Activities and Programme

(VII)

KVIC IN NORTH EASTERN REGION

KVIC has a Zonal Office for the North Eastern Zone at Guwahati and
State Office in all the states. Besides, it has a sub office at Silchar in Assam.
KVIC implements its programmes through the directly aided
institutions, State Khadi Boards, NGOs and other recognized organizations
and institutions.
Eash State has a State Khadi and Village Industries Board (KVIB).
There are 60 directly aided institutions in the region. The state-wise
numbers of directly aided institution are: Assam (34), Meghalaya (2),
Arunachal Pradesh (3), Nagaland (5), Manipur (14), Mizoram (1), Tripura (1)
and Sikkim (0)
There are a number of training institutes and training centres on Khadi
and Village industries run by different agencies. These are :
1. Multi Disciplinary Training Centre, Doimukh, Arunachal Pradesh
run by a directly aided institution of KVI.
2. Khadi Gramodyog Vidyalaya, Kumarikata, Assam run by a directly
aided institution of KVI.
3. Demonstration-cum-training Centre, Pottery at Dharamtul in
Assam under Assam Khadi and Village Industries Board.
4. Khadi Gramodyog Vidyalaya, Roha, Nagaon District, Assam run
by Assam Khadi and Village Industries Board.
5. Khadi & Village Industries Training Centre, Zimabalk, Aizawl,
Mizoram run by Mizoram Khadi and Village Industries Board.
KVIC Activities and Programme (35)

(VIII)

KVIC DEPARTMENTAL MARKETING CENTRES

A. NORTH ZONE :
1. Khadi Gramodyog Bhavan, 24 Regal Building, Connaught Circus,
New Delhi-110001 Phone: 011-23360902,23411651,23416758,
Fax: 011-23418126.
2. Gramshilpa, A-1, Emporia Complex, Baba Kharak Singh Marg,
New Delhi-110001 Phone: 011-23343741 Fax: 011-23742592.
3. Marketing Promotion & Product Development Centre, MDTC
Campus,Gandhi Darshan, Rajghat, New Delhi -110002 Phone &
Fax:011-23392383.

B. EAST ZONE :
1. Khadi Gramodyog Bhavan, B-BSock, 1st Floor, Mauryalok
Complex, D.B. Road, Patna-800001 Phone: 0612-2221673 Fax:
0612-22234010
2. Khadi Gramodyog Bhavan, Subarnarekha Apartment, AD/1/1A,
Rajarhat Road, Jyangra Chowrasta, Kolkata-700059, Phone:
033-25705895 Fax: 033-25705897.
3. Central Vastragar, B-10, B.J.B. Nagar, Bhubaneswar-751014
(Orissa) Phone & Fax: 0674-2430374.

C. NORTH-EAST ZONE :
1. Khadi Gramodyog Bhavan, Assam-Agartala Road, Paradise
Choumohani, Agartala-799011 Phone: 0381-2319317 Fax:
0381-2223735.

0. SOUTH ZONE :
1. Khadi Gramadyog Bhavan, 6, Dr. D.V.G. Road, Basavanagudi,
Bangalore-560004, Phone: 080-26616372, 26614581 Fax:
080-26620067.
2. Khadi Gramodyog Bhavan, Pallimukku, M.G. Road, Ernakulam,
Cochin-682016 (Kerala) Phone: 0484-2355279,2711082, Fax:
0484-2371779.
(36) KVIC Activities and Programme

E. WEST ZONE:
1. Khadi Gramodyog Bhavan, 3, Irla Road, Vile Parle (West),
Mumbai-400056 (Maharashtra), Phone:
022-26704454,24928013,26716097 Fax:022-26716680.
2. Khadi Gramodyog Bhavan, Katkar Buiding, Old Station Road, P.B.
No. 271, Margaon-403601 (Goa) Phone: 0832-2731025, 2232746
Fax: 0832-2223676.
3. Central Vastragar, Khadi Gramodyog Prayog Samiti, Ashram
Road, Ahmedabad- 380027 (Gujarat), Phone: 079-27557517 Fax:
079-26579974.

F. CENTRAL ZONE :
1. Khadi Gramodyog Bhavan, 27, Bhadbhada Road, T.T. Nagar,
Bhopal -462003. Phone: 0755-2554657, 2763613, Fax:
0755-2583667.
KVIC Activities and Programme (37)

OA}

KVIC DEPARTMENTAL TRAINING CENTRES

A. NORTH ZONE :
1. Multi Disciplinary Training Centre Gandhi Darshan, Rajghat, New
Delhi-110002 Phone: 011-23392708,23392383, Fax: 011-23392708.
2. Ch. Charan Singh Multi Disciplinary Training Centre P.O. Panjokhera,
Dist. Muzaffarnagar- 247445, Phone: 01392-225346, Fax:
01392-2653288.
3. Multi Disciplinary Training Centre,P.B. No. 27, Rampur Road, Haldwani,
Dist. Nainital- 263139, Phone & Fax: 05946-220416.
4. Multi Disciplinary Training Centre, Uppar Adhoiwala, Sahastradhara
Road, Dehradun-248001, Phone: 0135-2780186 Fax: 0135-2627241.

B. EAST ZONE :
1. Multi Disciplinary Training Centre, Udyogpuri, P.O. Khandagiri, Near
Gandamunda Chhak, Bhubaneswar-791030, Phone & Fax:
0674-2350724.
2. Dr. Rajendra Prasad Multi Disciplinary Training Centre, Post.-B.V.
Coilege, Sheikhpura, Patna-800014, Phone: 0612-2228511, 2224956
Fax: 0612-2228511.
3. Multi Disciplinary Training Centre, Vidyapith Road, Abhoy Ashram
Campus, Post-Birati, Kolkata-700051 Phone: 033-25390554 Fax:
033-25392011.

C. SOUTH ZONE .
1. Multi Disciplinary Training Centre, Post-Nadathara, Trichur- 680751,
Phone & Fax: 0487-2370681.
2. Multi Disciplinary Training Centre, Doovani Nagar, Near FCI Godown,
Bangalore-560016, Phone & Fax: 080-25650285.
3. Central Village Pottery Institute, Post-Khanapur-591302, Dist. Belgaum
Phone & Fax: 08336-222232.
4. Central Paimgur and Palm Products Institute, No. 44, Kumarappapuram,
Post. Madhavaram Milk Colony, Chennai-600051, Phone & Fax:
044-25555402.
(38) KVIC Activities and Programme

D. WEST ZONE :
1. C.B. Kora Institute of Village Industries, Shimpoli Road, Borivali
(W), Mumbai -400092, Phone & Fax: 022-28981105.
2. Dr. B. R. Ambedkar Institute of Rural Technology & Management
and Institute of Renewable Energy, Tryambak Vidya Mandir,
Nashik-422213. Phone: 0253-2280362, 2280576, 2281049, Fax:
0253-2280362
3. G.N. Multi Disciplinary Training Centre, Agar Road, Dahanu,
Thene-401601, Phone: & Fax: 02528-222626.
4. Central Bee Research and Training Institute, 1153, Ganeshkhind
Road, Pune-411016, Phone: 020-25675865 Fax: 020-25655351.
5. Mahatma Gandhi Institute for Rural Industrialisation, Manganwadi,
Wardha-442001, Phone & Fax: 07152-240328.
KVIC Activities and Programme (39

KVIC NON-DEPARTMENTAL TRAINING CENTRES

1. Khadi Gramodyog Vidyalaya, Tamulpur Anchalik Gramdan Sangh,
P.O. Kumarikata, Dist. Baksa-781360, (Assam) Phone & Fax:
03624-23504, Gram-GRAMDAN.
2. Multi Disciplinary Training Centre, Arunachal Pradesh Seva Sangh,
Doimukh-791 112, Dist. Papumpare, (Arunachal Pradesh) Phone:
0360-2277395, 2100694 Fax: 0360-2277218.
3. Khadi Gramodyog Vidyalaya, Gram Nirman Mandal, Sarvodaya
Ashram, P.O. Spkhodeora, Dist. Gaya- 805106 (Bihar).
4. Khadi Gramodyog Vidyalaya, Khadi Ashram, Post. Dhanna, Dist.
Ambala-134201 (Haryana) Phone: 07134-71103, Gram:
KHADIASHRAM.
5. Khadi Gramodyog Vidyalaya, (Textile Chemistry), Karnataka Khadi
gramodyog Samayukta Sangh, P.O. Bengarim, Hubli-580023 Dist.
Dharwad, Phone-0836-286193, Gram: FEDERATION.
6. Kasturba Mahiia Khadi Gramodyog Vidyalaya, Gandhi National
Memorial Society, Aga Khan Palace, Pune-411006, Phone:
0212-684054,680250.
7. Khadi Gramodyog Vidyalaya, Rajasthan Khadi Sangh,
Post-Shivdaspura, Jaipur-303903, Phone: 014294-7221.
8. Khadi Gramodyog Vidyalaya, Tamilnadu Sarvodaya Sangh, P.O.
Veerapandi, Tirupur, Pin-641605 (Tamil Nadu) Phone: 0421-710049,
Gram: VASTRALAYA.
9. Dr. J.K. Kumarappa Institute of Rural technology and Development,
Gandhi Niketan Ashram, Pin-626702 (Tamil Nadu), Phone:
04549-26325, Gram: VIDYALAYA.
10. Khadi Gramoaycg Vidyalaya, Kshetriya Shri Gandhi Ashram, P.O.
Sevapuri, Dist. Varanasi-221403, Phone: 0542-630205 (O), 630346
(R) Gram: ASHRAM.
11. Khadi Gramodyog Vidyalaya, Kshetriya Shri Gandhi Ashram, P.O.
Patranga, Dist Barabanki-225408, Phone: 05271-31304.
12. Khadi Gramodyog Vidyalaya, P.O. Surapur, Akbarpur, Dist. Ambedkar
Nagar-224112, Phone: 05271-88743, 44158 (O), 45579 (R).
13. New Weavers Wyalaya, Chenganachery Social Service Society, P.O.
Mallapally (West), Dist. Patnanamthitta-689585 (Kerala) Phone:
0473-682118, Fax: 0481-422540.
(40) KVIC Activities and Programme

14. New Weavers Vidyalaya, Cannanore Sarvodaya Sangh, P.O. Tikkoti,

Meladi, Pin-673529 (Kerala), Phone: 0490-231983 (O), 0497-851154
(R).
15. New Weavers Vidyalaya, Kerala Sarvodaya Sangh, Post-Civil Station,
Gandhi Ashram, Calicut-673020, Phone: 0495-371701.
16. Khadi Gramodyog Vidyalaya, Gandhi Samarak Gram Seva Kendrm,
P.O. Nathiattukunnam, North Paravur, Dist. Emakulam-683513,
Phone: 0484-442232, 444449.
17. Regional Pottery Training Centre, Gramodaya Sangh, P.O.
Bhadrawati, Dist. Chandrapur-442902, Phone: 07175-66029 (O),
65029 (R), Gram: GRAMODAYA SANGH.
18. Carcass Recovery Training Centre, Paschim Bengal Khadi Kendra,
Village-Chandmari, Post. Gayeshpur, Dist. Nadia-741234, Phone:
829393.
19. Sharad Samagra Gramin Vikas Sanstha, Carpentry and Blacksmithy
training Centre, Ingolw Chowk, Near Dr. Adalakhiya's Hospital,
Malgujaripura, Salu (Kate), Wardha, Phone: 07152-82027, 82028 H.O.
46087, 43067.
20. Samagra Vikas Parishad, Woollen Hosiery Training Centre, Near navin
Galla Mandi, Sitapur Road, Lucknow-226020, Phone: 0522-324679
(O), 456698 (R).
21. Rajasthan Vidyapur Kul, Gokul Bhai Bhatt Khadi Gramodyog Research
and Training Vidyalaya, P.O. Jhadol (HP), Dist. Udaipur, Phone:
029591-2328.
22. Rural Food Industry Training Institute, Shiksha Mandal Premises, Near
Sewagram Railway Station, Dist. Wardha-442001.
23. Sambalpur Silk and Gramodyog Samiti, National Rural Resource
Education and Training Centre, At-Kharumunda, P.O.-Tainsar, Dist.
Deogarh-786119 (Orissa), Phone: Head Office-06641-6253, Reg.
Office-0663-22720.
KVIC Activities and Programme (41)

(XI)
KVI BOARD'S TRAINING CENTRES
1. Shri T.S. Gokhale Khadi and V.i. Training and Research Institute,
MP. Khadi and VI. Board, Post. Vijaynagar, NearlTI Hostel,
lndore-452010, Phone:0731-553216.
2. Handmade Paper Institute, K.B. Joshi Road, Pune-411005, Phone:
0212-327383 Fax: 0212-677902, Gram: HANDPAPER.

(XII)

LIST OF OTHER AGENCIES WHO CAN ASSIST APPLICANTS :

i) Field Office of KVIC and its State Offices.
ii) KVI Boards.
iii) District Industries Centre (DIG)
iv) Banks/Financial Institutions.
v) KVI Federation.
vi) Department of Women and Child Development (DWCD), Nehru
Yuva
Kendra Sangathan (NYKS), The Army Wives Welfare Association
of India (AWWA) and Panchayati Raj Institutions.
vii) NGOs having at least five years experience and expertise in
Project
Consultancy in Small Agro & Rural Industrial Promotion and
Technical
Consultancy Services, Rural Development, Social Welfare having
requisite infrastructure and manpower and capable of reaching
Village and Taluk level in the State or Districts. NGOs should have
been funded by State or National Level Government Agency for
any
of its programmes in the preceding 3 years period.
viii) Professional Institutions/Technical Colleges recognized by
Government/University and University Grants Commission (UGC)
All India Council for Technical Education (AICTE) having
department
for vocational guidance or technical courses providing skill based
training like ITI, Rural Polytechnic, Food Processing Training
Institute,
etc.
ix) Certified KVI institutions aided by KVIC/KVIB provided these are in
category A+, A or B and are having required infrastructure,
manpower
and expertise for the role.
(42) KVIC Activities and Programme

x) Departmental and Non-Departmental Training Centres of KVIC/KVIBs.

xi) Micro, Small and Medium Enterprises Development Institutes (MSME-
DIs), MSME Tool Rooms and Technical Development Centres, under
the administrative control of Office of Development Commissions,
MSME.
xii) National Small Industries Corporation's (NSIC) offices, Technical
Centres, Training Centres, Incubators and Training cum Incubation
Centres (TICs) set up in PPP Mode.
xiii) National level Entrepreneurship Development Institutes like National
Institute for Entrepreneurship and Small Business Development
(NIESBUD), National Institute for Micro, Small and Medium
Enterprises (NIMSME) and Indian Institute of Entrepreneurship (HE),
Guwahati under the administrative control of Ministry of MSME, their
branches and the Entrepreneurship Development Centres (EDCs)
set up by their Partner Institutions (Pis).
xiv) Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana
of Ministry of MSME.
xv) PMEGP Federation, whenever formed.
SI. No. Name of the Existing Dai Code No.
Group -A (Khadi) Full Address

1. Manipur Khadi Production & Sales 2546

Co-operative Society Ltd. B.T. Road, P.O. Imphal
Pin -795 001 844
2. Dorcas Society
Pin-795 001 Old Lambulane Imphal
2663
3. Multipurpose Development
Association Thangmeiband Sinam Leikai
P.O. Imphal, Pin -795 001
4. District integrated Development 830
Association Phailen Chingkongpan
5. Manipur State Young Farmers Churachanpur, Pin -795 128 2549
Association Khumbong, P.O. Khumbong Bazar
Pin-795 003
6. Hiyanglam Rural Development 1406
Association, Code No. 1406 Hiyanglam Awang Leikai
P.O. Kakching thoubal District
2547
7. Manipur Project Pin -795 003
Development Organisation Singjamei Makha Kakwa
8. Manipur State Industrial Complex Ashem Leikai, Imphal, Pin -795008 552
Laipham Khunou Maning Leikai,
9. Bishnupur District Scouts Union Imphal-795 001 5153
Bishnupur Awang Leikai 1370
10. Manipur Khadi & V.I. Association P.O. Bishnupur-795 126
11. Heirok Khadi & V.I. Association M.G. Avenue, Imphal- 795 001
Heirok Part-ll, B.P.O. Heirok
Thoubal district 3423
Group -B (Village industries) P.O. Wangjing - 795 119
1. Sadar Khadi & V.
Industries Centre Saitu Sadar Hills
Saitu Village Senapati
2. Tribal Khadi & V.I. Centre District-795 106
L. Thinghangphai Serou
Places of K.G. Bhavans of Dai in P.O. Chandel-795 101
Manipur Run by
1. Uripok bachaspati Leikai, Imphal
West Dist. B.T. Manipur (HRDA)
2. Rupmahal Tank, B.T. Road
Imphal West, Manipur MKP&S Co. Op. SOciety
3. Moreh International Market,
Paona Bazar, Imphal - West, HKVID Assn.
Manif
4. Bishnupur Bazar BDSU
District Bishnupur Dist. Manipur
5. Phailen Village, Churachandpur, DIDA
Churachandpur-District.Manipur
6. M.G. Avenue Imphal Opposite to MKV! Assn.
Airline Office
7. Old Lambulane Imphal, Manipur DORCAS Society.