The Government of India formed the KVIC as a non-constitutional body under the Parliament Act. The objective of KVIC is to plan, promote, facilitate, organise and contribute to the advancement of khadi village industries in remote regions. This section will go over the Khadi and Village Industries Commission's (KVIC) various programmes.
Did you know?
In 1920 during the Swadeshi movement, khadi was used as a strong weapon by the father of the nation Mahatama Gandhiji.
The Relevance of Khadi Village Industries
The khadi village industries require a lot of labour. In the aftermath of industrialisation and the automating of virtually all operations, textile and rural industries are uniquely tailored to a workforce surplus country like India.
Another advantage of khadi village industries is that they require little to no start-up capital, making them a financially viable option for the rural poor. This is especially pertinent in India, given the country's significant income and topographical and rural/urban imbalances.
The Objectives of the Khadi and Village Industries Commission
The KVIC has set the following broad aims for itself-
- The social goal of giving work.
- The economic purpose of manufacturing marketable goods.
- The overall goal is to empower the poor and foster a strong rural community spirit.
The Functions of Khadi and Village Industries Commission
The KVIC has the following functions:
- To ensure there is robust availability of raw materials for production.
- To establish common facilities for converting raw materials into semi-finished items, as well as marketing facilities for KVIC products.
- To increase the sale and marketing of khadi and other handicrafts or goods from local enterprises.
- To develop and promote research in the KVIC industries sector's production techniques and equipment.
- To provide financial help to institutions and individuals to develop and guide the khadi village industries by providing designs, prototypes and other technical information.
- To ensure product authenticity and to establish quality standards for KVIC industries items.
The Features of the KVIC Scheme
- Interest Rate: This is determined by the applicant's profile and business needs.
- PMEGP directs and governs the loans offered, which include the following requirements for specific MSMEs:
- The maximum loan amount for manufacturing: is ₹25 lakhs.
- The maximum loan amount for businesses and services is ₹10 lakhs.
- PMEGP scheme funding pattern is listed below.
- Repayment tenure ranges from three to seven years, including a six-month moratorium period.
- There are no income limits.
- Margin: Three-year lock-in in a separate account, then adjusted with a KVIC loan.
The KVIC Loan Schemes
KVIC offers multiple schemes, which are as follows –
1. PMEGPY Scheme (Prime Minister Employment Generation Program)
Through KVIC, the state khadi village industries board, and District Industries Centre, PMEGP is a credit-linked subsidy scheme for developing new micro, medium and small firms and creating employment opportunities in rural and urban parts of the country. The KVIC serves as the main agency for the PMEGP scheme's implementation across the country.
2. Honey Mission
The KVIC developed the Honey (Bee) Mission to assist beekeeping and create job opportunities in the country's beekeeping states. One of the goals of the SFURTI Scheme is to promote scientific beekeeping practices helping rural youth and farmers improve their livelihoods.
3. Workshed Scheme for Khadi Artisans
The KVIC scheme provides financial help to BPL khadi artisans to construct worksheds. The khadi institution ensures that the financial aid provided under the scheme is used to benefit the artisans, enabling a long-term path to revenue generation, growth, and a better working environment.
4. Khadi Reform and Development Program
KRDP strives to provide rural artisans with a low-cost way to generate money in their households. Traditional village industries such as handmade paper, honey, cosmetics, herbal health, agro-food processing and leather are also supported.
5. Interest Subsidy Eligibility Certificate
Banks can obtain loans at a reduced interest rate through the KVIC scheme if they have an Interest Subsidy Eligibility Certificate issued by the KVIC.
6. Market Promotion Development Assistance (MPDA)
The Market Promotion Development Assistance scheme was proposed to increase artisans' wages. As part of the MPDA system, artisans, spinners and weavers receive a 25% bonus through their bank or post office accounts.
7. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
The SFURTI program aims to give need-based assistance for production tool replacement, product development, the establishment of Common Facility Centres (CFC), quality improvement, improved marketing, training, and capacity building. Under this program, existing poor khadi organisations receive financial support to improve their infrastructure and choose khadi sales locations.
Other operations carried out by KVIC include pottery, chemical-based, polymer-based, handmade paper and fibre-based, agro-based, beekeeping and other forest-based activities.
The Interest Rate Subsidy Programme
The interest subsidy program given by KVIC will apply to particular loans provided by banking institutions. Loans are offered by
- Societies registered under the Societies Registration Act of 1860.
- The Co-operative Societies Act of 1912 established the Co-operative Society.
- Trusts that are established for the public good and religious objectives
- Institutions of Finance: Nationalised banks, cooperative banks, state financial corporations and industrial development banks are all scheduled and non-scheduled banks.
The Eligibility Criteria for Raising KVIC Loans
- You must be at least 18 years old with an 8th-grade pass certificate.
- Self Help Groups (SHGs).
- Registered and Co-operative Societies.
- Charitable Trusts and many other organisations
The Progress of KVIC
The following are some key points from the KVIC report on the khadi and village industries:
- "Earlier it was khadi for the nation, khadi for fashion, now it is khadi for transformation," says India's Prime Minister, Narendra Modi.
- Women have gained self-esteem and self-reliance as a result of Mission Solar Charkha.
The data below show the substantial changes in khadi production and sales:
- From 2004 to 2014, the average Khadi output increased to 26.43 % in 2015-18.
- Khadi sales increased from 6.62 % in 2004 to 31 % in 2015-18.
- Between 2015 and 2018, 728 khadi sales shops received funding for renovation. Between 2004 and 2014, no outlets were recorded.
- Between 2015 and 2018, khadi institutions received 400 computers, gear and software for digitisation.
- The first Khaadi Haat was established in New Delhi in 2018.
- At International Trade Fair, KVIC established the Digital India Pavilion.
- To honour Mahatma Gandhi's visit to East Champaran, a massive steel charkha was installed in April 2018.
- KVIC gifted Uganda with Gandhi Charkha unveiled on the International Day of Nonviolence.
- KVIC offers an artisan-centric strategy for the transformation of the khadi village industries.
The KVIC Missions
- KVIC's mission is to assume responsibility for the development of KVIC and relieve the government of its burden.
- Community: To support the rural community by promoting life security.
- Increased production in KVIC sectors through village industry.
- Market: To help with KVIC product sales and marketing.
- Protecting the socio-cultural significance of heritage as a national treasure.
- Community Village Industry Market Heritage Organisation has created the KVIC e-portal for khadi institutions, which assists artisans in promoting and selling their KVIC products throughout India.
- Under the Fund for Regeneration of Traditional Industries (SFURTI) scheme, KVIC is the nodal agency for developing khadi production clusters.
The MSME department, which is in charge of the programmes, oversees their execution. The Ministry of KVIC industries receives funds from the Indian government and allocates them to the khadi and village industries commission to implement KVIC industries initiatives.
The KVIC then utilises the funds for its programmes either directly through its twenty-nine state offices, now funding khadi and village industries and co-operatives, or indirectly through KVIC boards. These boards are statutory bodies established by state governments within India to promote KVIC industries in their respective states. The khadi and village industries boards fund Khadi and Village Industries Commission.
The KVIC is responsible for developing, promoting, organising, and implementing programmes to build khadi and other village industries in rural regions, collaborating with other rural development organisations.
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