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ASTIVITIES AND PRO&RAMMES

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STATE OFFICE

KHADI AND VILLAGE INDUSTRIES COMMISSION SUPER MARKET COMPLEX, DIMAPUR-797112

Tel. & Fax: (03862) 226546, e-mail: athubakvic@yahoo.co.in

XUNUI AND VILLAGE INDUSTRIES COMMISSION

Topics

Page No.
1

A MISSION
To create employment opportunities in the non sector in the rural areas.

-farming

To produce saleable articles or to provide services' and to To support rural development in its widest sense improve the qualitY of life.

1. Khadi and Village lndustries Commission - A Profile 2. A Few Concepts of Khadi and Village lndustries 3. An lllustrative List of Village lndustries 4. Negative List of Village lndustries 5. Prime Ministefs Employment Generation Programme 6. Salient Points on PMEGP (Questions and Answers) 7. KVIC in North Eastern Region

o 10 14 15

30 37 38

IT'S MOTTO
To ensure employment at door steps' To ensure production by the masses' To harness human technologY'
To preserve environment.
1

KVIC Departmental Training Centres

9. KVIC Non-Departmental/ KVI Board's Training Centres 0, List of Other Agencies who can Assist Applicants

40 43

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.

--FFF

r<tnc AcTtvIrIES AND-Lr4qqE4

The Beginning: created by an Act of Parliament (No 61 of 1956 statutory body -by Act trto iZ of 1987). lt was established in April ,, "r"id"d 1957 as KVIC and it took over the work of the formerAll lndia Khadi and Village lndustries Board set up in 1950. lt is eng_aged in the task of promoting and developing Khadi and village lndustries (KVl) with a viewto creating employmentopportunities lt in the rurai areas, thereby strengthening the rural economy. Micro, of functions under the administrative control of Ministry Small and Medium Enterprises, Government of lndia'

KhadiandVillagelndustriesCommission(KVIC)isa

Objectives:
The broad objectives of the KVIC are: ' The social objective of providing employment ; ' The economic objective of producing saleable articles, and

'
Functions:

The wider objective of creating self-reliance amongst the people and building up a strong rural
communitY sPirit.

promotion, organization and implementation of programmes for rural ine Oevetopm6nt of khadi and other village industries in the rural in in coordination with other agencies engaged

KVIChasbeenchargedwithth6functionofplanning,

areas

development.

Its functions also comprise building up of a'reserve rawmaterialsandimplementsforsupplytoproducers,creation

of

ofcommonservicefacilitiesforprocessingofrawmaterialsas ;;-ii;;h"o goodr and provision of facilities for marketing of

in Khadi KVI products. i-t organizestraining of artisans engaged and Village lndustries.

I<IIIC ACTIWTIES AND PBOGRANIMES

(

IiIIIC

AC.TTYITTES

AND PBOGBAMMES
(

ii)

iii)

](/lCisalsochargedwiththeresponsibilityofencouraging
and promoting research in the production techniques and equipments emptoyed in the K/l sector and providing facilities for the study of the

!1.

Janshree Bima Yojana Scheme: .

'

.-"

,:

,,,',';

''

pro'utems relating to the same. lt also promotes the use of nonconventional energy, bio-fertilizer and other organic products'

financial assistance to institutions and persons who are engaged in the development and operation of Khadi and village lndustries and guiding ti-rem through supply of designs, prototypes and other technical information.

Further, KVIC is entrusted with the task of providing

All KhadiArtisans have been covered under Jqnashree Bima Yojana Scheme. This Scheme provides insurance cover against death and disability besides, children edudatlonal : allowances are also eligible under this

Scheme.

lmplementation of Khadi Programme: KVIC promotes and extends financial support for
implementation of Khadi Programme through registered inslitutions

KVIO has introduced a new scheme for ifre Khadi artisans for providing them worksheds. Underthis scheme l(/lC will provide 75% of the cost'of construction of workshed, subjectto a maximum of Rs. 25,0001- as grant. The remaining25o/o will be borne by the Khadi lnstitutions with whom the artisansrhave been working.

lll, ' '

Workshed for KhadiArtisans:

and cooperative societies. Besides it implements Khadi

Village lndustries:

Programme departmentally and through state Khadi and Village lndJstries Boards. ln the process of implementation of the programme, KVIC extends support in the form of loan and grant ilnOir 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 pioducts for which the country enjoys pride recognition'

, The KVIC promotes village,industries programme through State Khadi qnd Village lndustries Boards (KVIB)i DlC, NGOs, individuals and pelf Hqlp Qroups under banking gystem with 25% to 35% margin, mpney, uqdqr Prim,e, Minister Em,ployment Generation Programme (PMEGP) Bgsi$es, the KVIQ, alqQ promotes rural industries through cluster approach, comm.on facility centres and other feasible way to gener'Stdtirural

of any two or all fibres play a vital role in providing g_ainful employment and also play a trucial role in our economy. These uniis ire mostly labour intensive and the abundant labour force available in our country caters to their needs. Besides, these
the advantage of absorbing high rate of traditional ekill' lncentives for Khadi Artisans: Artisans'Welfare Trusts

Different types of Khadi- Cotton, Silk, Woolen and mixture

employment.
.:':

:,,.

j.
''..

Prime Minister Employment Generation Programme: :.

.:' .: .,.r1 ..:t,:1.t,
i

r,.,t:.,

units do not require large capital investment, too. They aleo have

Besides other programrnes, "KVlC, has been implementing Prime M n ister's Em ployrnent Generation Prograrn me ( PM EGP),

l.

under Khadi, in" fVtC has constituted Artisdn'l Wclfare Trusts wherein 12o/owages contribution is collEC-tod frOm fftlfans and 12o/ois paid through production. The fundr rrO.mrnlgcd by the Trusts providing security of savinga of Khrdl fi'tlrlnr,

To support and safeguard the future 9f tt't? a.+F?I'B working

popular'ly known as Margin Mo.ney.'Scheme, and cluster development. progrqmnre. Ministry, of Micro, Sr,,nall and Medium Enterprises has launched the PMEGP Scherne on 1Sth August 2008 for generation of employment opportunities,both in rufal and urban areas in the countryThe main channels of the scheme are the bankS-public sector scheduled commercial banks,
Regional Rural Banks ahd selected Financial lnstitutions private sector scheduled commerciel banks and Cooperative Banks.(see for details under PMEGP)

l<lilC ACTnfinES At{D PBOGBAMITfrS

(iv) Spectrum of linkage:
Success of any scheme depends upon the support of stl.ong b'aclnrard and fonrvard linkages" PMEGP cannot be an exception to this thumb rule. PMEGP is equipped with different linkages to ensure smooth functioning of the scheme-

r<r/ tC

ACTMTIES AI{ D pROcRAItfivtES

(v)

two parts- Essay and Debate competitions on ruralentrepreneurShip

Entrepreneurchip Development Programme:

t(dlC provides training to identified PMEGP entrepreneurs for Entrepreneurship skill Development covering managerial, accounting and marketing management through accredited institutions, ftee of cost.

development with the involvement of student community, the potential entrepreneurs of tomorroq and the society in general through Seminar. ln 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 zealand supporttowards need for rural industrialization, thereby rural employment generation is thrust upon.

Awareness Programmes:

Exhibitions:
Exhibitions are windows that show various products and their utility, besides expanding opportunity to the producers and service providers to feel the pulse of ever demanding customer/ customers.As a part of the market promotion, the l(v'lc organizes National, Zonal, State and District level exhibitions for KVI products, providing scope for free participation of PMEGP entrepreneurs to display, demonstrate and sell their products'

l(/lG conductsArrareness camps in each districtwherein

extensive dissemination of information about the self-employment opportqnitbs throggh PMEGP b made to the potential beneficiaries and mmmon man as well. Ofificials from l(VlC, l(VlBs, DlCs, Banks, NGOs, Gaon Pancfiayat, rural erilrrepleneurs etc- tale part to enfrrgse people to gp for self+mployment- Besides, participants

are apprised of sctreme Ploedure-

Worlshops:
District and Block levelworkshops provide a platform to pnesent various nuanoes of 4hg 9ch9m9 1o.tf9 participants' ifepresentdives ftom l(l/lc, Kfl B, DistridAdministration, Banks, N(iOs, lntellecfuab,'media etc" used tq take part in it. lt enriches ulem wiur mole and accurate information related to the scheme. This abo facilihbs threadbale drsctfitsion on various issues, wtticfi rcsult in onerted effiort. surcsfirl enhepreneurs of the area sharefrrdr elperienoe m part of motivalion for neUvenrepleneurs-

Design Development and Packaging:

KVIC has also given importance on product development,

design intervention add packaging both in Khadi and Village lndustries. Accordingly, suitable schemes have been launched for the benefit of KVI artisans and entrepreneurs.
I

rarnrng:

Peoples Education Programme: ' Thb programrreb organired atthedisffictand block level irwolving sfiderils of scfimls, @lleges and unirrerrifio, the ftrture cirens c tma besires irreflecfinb, prominmt petsonalities, disffid
adminisfiattn, benkers, press and medh
ilc.

KVIC provides various trainings for skill development, capacity building etc. through their departmental as well as recognized 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.

Thc pmgramme has

KLIIC ACTNITIES AND PROGRANTNIES

r<ltrc AcTrvIflES AND PRoGEAJi|IMES (vii) Non-conventional energy:

(vi)
Research and DeveloPment:

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

lnordertomeetupthechallengeoffuelrequirement, implementation of Non-Conventional Energy Programme'

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. ln April 1998, KV1C

'

plants identification of potential beneficiaries, setting up of Biogas taken are Technicians under the technical guidance of Rural Energy Government up on extensive wiy. There is provision of Central subsidy in orderto encourage and to support village entrepreneurs' RURAL INDUSTRIES SERVIGE CENTRE (RISC) to infrastructural support and necessary services to the local units and promotion upgrade their production capacity, skills ?nd n'larket in a cluster, activities V.l. & Khadi balkward fonruard linkage to quality training, services like raw materiaisupport, skill upgradation, order in control, testing facilities, design and productrdevelopment agencies to strengthen the rural clusters. lt is implemented by various
tike

Itisthecommonfacilityunit,which'aimstoprovide

introduced a scheme of common facilities centre (cFC) for providing support services to clusters. The cFCs were to extent supportior 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 cluster scheme as part of KVI's celebration programme of Golden Jubilee of lndia's lndependence "Abhyudayal'.

t{/il, KVlBs, Khadi & V. I. institutions, P""11,:"1t-?lo.I:ot

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.

RURALINDUSTRIESCoNSULTANGYSERVICECELL(RlcS): TomakePMEGPschememoreeffectiveandaccessible to the new entrepreneurs, KVIC has launched Rural lndustrial consultancy service (Rlcs) under which first generation entrepreneurs are provid'ed services, such as prpject formulation, co-ordination with banks, technical backup, marketing support, projects, etc. such incentives will help new entrepreneurs to set up which will be more viable and better manageable'

KVIC has launched three common brand namee i'e' Khadi, Sarvodaya and Desi Aahar for making KVI products globally competiiive through quality driven brands. Khadl brand is tor knaai products. Sarvodaya brand for village industry products. Desi Aahar for food products. sarvodryr product irng" consists of toilet soap, pickles, agarbattl, honcy etc' and is aimed at domestic consumer market. Khrdl brfnd exclusive produds like,essential oil, high'fashion deg|gnfr gf rmantE, herbal products etc. were developed to cetcr to thc hlgh cnd market as wellas export.

Government of lndia has introduced a Scheme called "Scheme of Fund for Regeneration of Traditional lndustries (sFURTl) Under this scheme KVIC will support at least 500 traditional artisans in a cluster in skil! upgradation, cFC and marketing growth through reputed NGOs. This is a S-year project for overall of tne-traditional industry and for generating sustainable income for artisans. KVIC is the NodalAgency for the programme''KVIC is imptementing 79 SFURTI clusters in the country'

Ministry of Micro, Small and Medium Enterprises'

KITIC ACTIWTIES AND PBOGRANINIES

I<I]IC ACTNITIES AND PBOGRANINIES

(viii)
Science & Technology:

lt
A FEW CONCEPTS OF KHADIAND VILLAGE'INDUSTRIES
1. Khadi

KVIC has close liaison with premier Academic and Research Organizations like llTs, llSc, NlTs, NIFT, NID etc. for technological support in the areas of development of efficient
processes, products, efficient tools/ equipments, etc.

Mahatma Gandhi lnstitute of Rural industrialization (MGlRl) has been set up at Wardha in technical collaboration with lndian lnstitute of Technology (llT), New Delhi, which started
funclioning to improve the quality parameters of various products to accelerate the pace of growth and development of the sector in the competitive econorny. E- Gharkha: One of the major achievements of KVIC is development of one, two and eight-spindle NMC E- charkha, in collaboration with flexitron organization, Bangalore, where the spinner while plying the charkha, rotates an armature / dynamo which in turn charges a battery. lt allows the spinnerto light her dwelling place, listen to transistor and rqcharge cell phone.
has its CentralOffice at Mumbai. lt has 36 State and Divisional Offices, 6Zonal Offices at New Delhi, Bhopal, Kolkata, Guwahati, Bangalore and Mumbai, 15 Departmentaland 23 NonDepartmentalTraining Centres and a number of accredited Training Centres, 13 Departmental Sales Outlets and 6 Sliver Plants. lts partner agencies include 33 States and Union Tenitories Khadi and V.l. Boards, over5600 registered institution (NGOs), over7050 retail sales outlets and 27 public sector banks with a network of more than 50000 branches, besides Regional Rural Banks and Cooperative Banks spread alloverthe ruralareas in the country. During 2006-07 total sales of Khadi and Mllage lndustry products was over Rs. 17562 crores and employment generation for 88.92 lakh persons. Khadi sector provides a range of diverse products ranging from hand-oven and hand-spun textiles of cotton, gllk, woolen and polyvastra and various village industry productS, KVIC has, thus, been playing a very significant role ln rural lndustrlallzation and employment generation in the country.

"Khadi" means any cloth oven on handloom in lndia from cotton, silk or woolen yarn handspun'in lndia or from a mixture of any two or all of such Yarn.
2. Village

lndustry

" Village industry " means any industry located in Rural Area which produces any goods or renders any service with or without the use of power and in which fixed investment per head of any artisan or a worker do not exceed Rs. 1,00,000/- in plain areas and Rs. 1,50,000/- in hilly areas. 3. Polyvastra lndia from yarn handspun in lndia 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 lndia with either cotton, silk or woolen yarn handspun in lndia or with any two or all of such yarn.

" Polyvastra " means any cloth woven on handloom

in

l(/lC

4. Ruralarea
" RuralArea " means -

i)

Any area classified as Village as per the revenue recordS of the State/ U.T., inespective of population.
provided its population does not exceed 20,000.

ii) lt also includes an area even if classified as town,

K!,TIC ACTIVITIES

AND PBOGRAIVTMES

I{IIC

ACTIVITIES AND PROGRAYINIES

ilr
An lliustrative List of Villase lndustries Group-l: Mineral Based lndustrv:

(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 canning including pickles, (3e) Ghani oil industry, (40) Mentholoil, (41) Fibre other than coir, (42) Collection of forest plants and fluits 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 processing unit, (48) Cattle feed, poultry feed manufacturing,

(1) Cottage Pottery lndustry (2) Lime Stone, Lime Sfell and other lime products industry (3) Stone cutting, crushing, carving and engraving fortemfles
(4) (5) (6) (7) (8) (e)

(10) (11) (12) (13) (14)

and Buildings. Utility articles made out of stone, Slate and Slate pencil making, Manufacture of Plaster of Paris, Utensilwashing powdel Fuel briquetting, Jewellery out of Gold, Silver, Stone, Shell and synthetic materials. Manufacture of Gulal, Rangoli, Abir etc. Manufacture of Bangles, Manufacture of Paints, Pigments, Varnishes and Distemper Manufacture of Glass Toys 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 and (21) Bamboo and cane work, (22) Manufacture of paper cups, plates, bags, and other paper
containers.

Group- lV: Polvmer and Chemical Based lndustrv:

Agarbatties, [f;;f*dre

(49)

Flaying, curing and tanning of hides and skins and ancillary

industries connected with the small and cottage leather industry

(23)

of exerciee book binding, cnvelop making,

(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)

r.egister making, including all stationeryitems made of paper,

(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,

KIIIC ACT,J/ITIffi AFID PROGRAMMES

I<IIIC ACTNNT'E.S AilD PROGRAfrIIilES

Grouo-Vl: Textile lndustrv (Excludino Khadi):

(58) (59) (60) (61)

Manufacture of essential oils, Manufacture of shampoos, Manufacture of hair oil, 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) Gas
(66) (67) (68) (6e) (70) (71) (72) (73) (74) (75) (76) (77) (78) (7e) (80) (81) (82) (83) (84) (85)

from cow dung and other waste products (Such as flesh of dead 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,

(87) Tailoring and Preparation of Readymade Garments, (88) Batick Works, (89) Toys and Doll Making, (90) Thread Balls and woolen Balling Lacchi making, (91) Embroidery, (92) Manufacture of surgical bandages, (93) Stove wicks, (94) Carpet weaving, (95) Shawlweaving,
Group- Vll: Service lndustrv: (e6) (e7) (e8) (es) (100) (101) (102) (103) (104) (105) (106) (107) (108) (10e) (110)
(111)

Laundry
Barber.

Plumbing,

Servicing of Electric Wiring and electronics domestic

appliances and eQuipments, Repairs of diesel engines, pump sets etc., Tyre vulcanizing unit, Agriculturc seMcing forsprayers, insecticides, pump sets etc, Hiring of sound system like loud speaker, amplifiq mike etc., Battery charging, Art Board painting, ir shops'

Production of voltage stabilizet Manufacture 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, cycle rickshaq motorized carts etc. (86) Manufacture of m usical instruments.

fi::':fff

(112)
(113)

(114) (115)

Band Troupe, Motorized local boat (Fibre glass) for Goa only, Motor cyole to ply as Taxi ( For Goa only) Musical lnstruments (For Goa only) Motor cycle taxi, Dhabas (Not serving liquor, Meat, Fish, Egg etc.), Tea Stal, lodized Salt.

Wrc

ACTIVITIES AND PROGEAITIMES

I<IIIC ACTIJ/TTIES AND

PROGRATUT]i|IES

v
Negative List of Activities Activities under Negative list (not eligible for assistance under PMEGP) are:
a)

MINISTER'S EMPLOYMENT GENERATIONPROGRAMME (PMEGP)

1. lntroduction

.PRtME

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.

The Ministry of Micro, Small and Medium Enterprises (MoMSME) has launched a new credit linked subsidy programme called Prime Ministe/s Employment Generation Programme (PMEGP) on 15 August2008 by merging the Prime Ministeds RojgarYojana (PMRY) and the Rural Enployment Generation Programme (REGP) thatwere in operation till 31March.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 Mllage lndustries Commission (KVIC) as the nodal agency at the National

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 environmental problems. :
,

level. At the State level, the Scheme is implemented through the $ate l(/lC Directorates, State Khadiand Village lndustries Boards (l(\/lBs) and District lndustries Centres (DlCs) and banks. The
Gover.nment.subsidy under,the Scheme is being routed bythe l(/lC through the identified Banks for eventual distribution tO the beneficiaries / entrepreneurs in their Bank accounts.

d)

lndustries such as processing of Pashmina Wool and sr.lch other products like hand spinning and hand weaving, taking

2. Objectives

advantage of Khadi Programme under the purview of Certification Rules and availing sales rebate.

(i)

e)

To generate employment opportunities both in rural and urban areas of the country through settihg up of new selfem ployment ventures/ proj ects/ m icro enterprises.
and urban unemployed yguth and give them self-employment opportunities to the gxtent pgssible, at their place.

Rural Transport (Except Auto Rickshaw in Andaman & Nicobar lslands, House Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw).

(ii)_ Tq bring together widely dispersed traditional artisans/ rural

(iii)

To pr.ovide 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. To increase the wage earning capacity of artisans and contrib'ute to increase in the growth rate of rural and urban employment.

(iv)

KlI IC ACTN ITTES

AT{ D

PROGRAII{IuIES
5.

T<IIIC ACTNilTIIES AND PBOGBAJWMES

'1. Quantum and Nature of FinancialAssistance

Categories of beneficiaries under PMEGP Beneficiary's

Eligibility Conditions of Beneficiaries

Age: Any individual above 18 years of age.

conkibution
(of project cost)

Rate of Subsidy (of project cost)

a) b)

Area (location of projecUunit) GeneralCategory Special (including SC / ST /OBC /MinoritiesMomen, Ex-servicemen, Physically handicapped, Hill and Border areas etc.
All categories of beneficiaries of States of North Eastern Region
05o/o

Urban 1}Yo
15o/o

Rural
25o/o 35o/o

EducationatQuatification: Vlll standard pass for setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5lakh in the business/service sector' Otherwise there is no specific educational qualification. Family lncome: No ceiling of family income for assistance for setting up projects under,PMEGP

05%

25Yo

d)
25Yo
350/o

New Proiect:Assistance underthe Scheme is available only for new projects sanctioned specifically under the PMEGP'

e)

4. Geiling Limit of Project cost

Self Help Groups: provided that they have not availed benefits under anY other Scheme.
I

a)
b)

nstitutions: Registered institutions.

The maximum cost of the projecUunit admissible under nlanufacturing sector is Rs.25 lakh.
.

Production Co-operative Societies, and Charitable Trusts'

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

s)

Note:

Non-etigibte 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 atso n6t eligibte.

c)
d) e)

Project cost will include Capital Expenditure and one cycle of Working Capital. Cost of the land should not be inctuded in the Project cost.

5.1 Other (i)

eligibility conditions

Cost of the ready built and long lease or rentalwork 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. Projects without Capital Expenditure are not eligible for financing under the Scheme.
Projects costing morethan Rs.Slakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank's Branch.
A-

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.
to the Margin Money (subsidy) Claim, wherever necessary'

(ii) lnstitutions are to append a certified copy of their bye-laws

(iii) PMEGP iq,applicable to all new viable micro enterprises, activities including Mllage lndustries q_lolecfs
"9*9?pt indicated in the negative list of Village lndustries'.
Existing/old units are not

0
g)

(iv)

eligible.

Wrc
Note:

ACTruIrIES AND

PROGRAIUIPTES

IflI,IC ACTTVITIES AND PROGRANINTES

(1) The lnstitutions/production Co-operative Societies/

Trusts specifically registered as such and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen and Minority tnstituiions with necessary provisions in the bye-'laws to that effect are eligible for Margin Money

The nodal agencies will associate a number of other agencies in the implementation of PMEGP Some of such
agencies are:
i) ii)
ii

Field Offices of KVIC and its State offices State KVI Boards Banks and Financial lnstitutions. KVI Federation Department of Women and Child Development (DWCD),

(subsidy) for the special categories. However, such lnstitutions 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.

i)

iv) v) vi)

Nehru Yuva Kendra Sangathan (NYKS), Army Wives

Welfare Association of lndia (AWWA) and Panchayati Raj lnstitutions (PRl) vii) Experience NGOs viii) Government, UGC or AICTE recognized Professional lnstitutions/ Technical Colleges ix) Selected Certified KVI institutions x) KVIC/KVI B Traini ng Centres. xi) Micro, Small and Medium Enterprises Development lnstitutes (MSME-D|s), MSME Tool Rooms and Technical Development Centres. xii) National Small lndustries Corporation's (NSIC) offices, Technical Centres, Training Centres, lncubators and Training cum lncubation Centres (TlCs). xiii) lndian lnstitute of Entrepreneurship (llE), Guwahati xiv) Udyami Mitras empanelled under Rajiv Gandhi Udayami Mitra Yojana.
(Further details can be seen under "List of OtherAgencies Who Can AssistApplicants").

5. lmplementingAgencies

5.1

Nodaland lmptementing Agency at the National level: The Khadi and Village lndustries Commission (KVIC), Mumbai which is implementing the Scheme is the single
nodal agency at the national level.

5.2

{mptementing Agencies at the State Level: (a) State Directorates of KVlc (b) state Khadiand village lndustries Boards (KVlBs) and (c) District rndustries centres in rurar areas. ln urban areas, District lndustries Centres (DlCs)
are the only implementing agency. KVlc will coordinate with

KVIBs/ DlCs and monitor performance in rural and urban areas. KVIC will coordinate with State KVIBs/State DlCs and monitor performance in rural and urban areas. KVIC 'and DlCswitlalso involve NSIC, UdyamiMitras empanelled under Rajiv Gandhi Udyami n4iira yojana (RGUMY), Panchayati Raj lnstitutions and other NGOs of repute in identificationofbeneficiarieslunderPMEGP.

6. (i)

Financiallnstitutions
All Public Sector Banks. All Regional Rural Banks.
Co-operative Banks and Private SectorScheduled Commercial Banks approved by State LevelTask Force Committee Small lndustr.ies Development Bank of lndia (SlDBl).

(ii)
(iii)
(iv)

KI|IC ACTNffiES

AI,l D P ROGRAIuIIuIES

7.

ldentification of beneficiaries:

7.1 Th-oidentification of beneficiaries will be done at the district level by a Task Force consisting of representatives from
KVIC/ KVIB and DlCs and Banks.

7.2 TheTask

force would be headed by the concerned Deputy Commissioner.

The Reserve Bank of lndia (RBl) has already issued guidelines to the Public Sector Banks to ensure 20 Yo year to year growth in creditto MSME Sector. SIDBI is also strengthening its credit operations to micro enterprises so as to cover 50 lakh additional beneficiaries over five years beginning 2006-07, and is recognized as a participating financial institution under PMEGP.

7.3 The Bankers should

7

be involved right from the beginning to ensure that bunching of applications is avoided.

.4 The applicants, who have already undergone training of at least 2 weeks under Entrepreneursliip Develo[ment

Programme (EDP) / Skill Development programme lbOey l Entrepreneurship cum Skill Development programme (ESDP) orVocationalTraining (W), will be allowed to submit applications directly to Banks. However, the Banks will refer the application to the Task Force for its consideration.

8.3 Though Banks will claim Margin Money (subsidy) on the basis of projections of Capital Expenditure in the project report and sanction thereof, 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.
,

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,

8.4 Working Capitalcomponent should be utilized in such a way that at one point of stage it touches 1}0o/olimit of Cash Credit within three years of lock in period of Margin Money and not less than 75o/o ulilization of the sanctioned limit. lf it does not touch aforesaid limit, proportionate amount of the Margin Money is to be recovered by the BanklFinancial lnstitution 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 banUfinancial institution. Banks have been routinely insisting on credit guarantee coverage irr.espective of the merits of the proposal. This approach needs to be

objective and fair process. The panchayiti Raj lnstitutions should be involved in the process of selection

8.

Bank Finance
will sanction 95% of the project cost to the beneficiary/ institution and disburse full amount suitably for setting up of the project.

8.1 Bank

discouraged.

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 ZS-3So/o of margin money (subsidy) and owner's contribution of S% from beneficiaries. This scheme will thus require enhanced allocations and sanction of loans from participating.banks.

9.

Village lndustry
Any Village lndustry including Coir based projeots (except those

mentioned in the negative list) located in the rural area which produces any goods or renders any service with orwithout 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 workshopl wor,kshed, machinery and fumiture divided by full time employment created by the project does not exceed Rs. 1 00 iakh in plain areas and Rs.1.50 lakh in hilly areas.
.

KVIC ACTIYITIES .4ND PBO GRAMMEA

10. RuralArea

(i)
(ii)

Any area classified as viilage as per the revenue record of the State/Union Territory, irrespective of population. lt will. als.o include any area even if ctassified as town,

atthe state level in their respective.accounts in accordance with the targets allocated to each implementing agency.

place the margin mdnby funds with,the irnplemenfing Banks

each State to the Principal Secretaries/Secretaries

(l

CEO, KVIC will convey the margin money tar:gets allotted to

(i)

11. Modalities of the operation of the Scheme

Project proposals will be invited from potential beneficiaries KVlc, KVIBs and DlCs.
at district levelthrough multi-media publicity by

(a)

Sponsoring of project by any agency is not mandatory. The beneficiary can direcily approach Bink/Financial lnstitution along with his/her prqect proposar. However, the apprications receivgd direcfly by the Banks will be referred to'the Task Force for its consideration. Panchayat Karyalayas etc.

ndustries)l Commissioners (l ndustries) simultaneously. The target among the Districts in the State will be assigned by the State LevelBankers Coordination Committee (SLBCCj. sLBCC will ensure that targets are evenly distribuied within each district. The State-wise targets in respect of KVIC/ KVIBs will be made available OV XV|C to SLBCC where overall allocation of district-wise tirgets will be decided. Any modification of the targets will be permitted only with the concunence of the

Ministry.

(b) Proposals can be sponsored by KVIC/ KVIBs I Dlct

(b)

(c) The Task Force

calls for an interview of the applicants separately for rural and urban areas. The serecied candidates are provided project formuration guidance and orientation by'KVrc oi KVIBs or Drcs who arso assist and guide themlin project formulation and submission to the concerned Bank in the
area. The applicants-may also approach any other. agencies listed under para 5.3.

the, project etc., the Task Force shorflists suitable ones and

h.eaded by the concerned Deputy commissioner scrutinizes the apprications and based on the experience, technicar quarification, and skiil, viaoitity or
(c)

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. DlCs, in close coordination with Banks, will ensure that at least 5O % of the total margin money allocated to them will be utilized in setting up of projects in rural areas.

(d) KVlc will identify the Nodal

consultation with state Governments and will forward the list to all the implementing agencies.

Banks at state tevet in

(ii)
(a)

The release of.funds to the imprementing agencies wiil be in the following manner:Govemment will provide funds under pMEGp to KVrc, the nodal implementing agency. KVlc wiil in turn, within a period of 15 days of receipt of the money from the Government,

KVIC being the single NodalAgency at the National level will coordinate with the identified implementing agencies, i.e., KVlBs, DlCs and others. KVIC will carry out tasks envisaged in the forward and backward linkages, including e{racking, web management, publicity, physical verification of units, organizing EDP, awarenesi camps, workshops and exhibitions. Hence, KVIC will require utilizing major share of the allocation under forward and backward linkages. However, KVIC willensure that it will reserve and allocate at least 25 o/o of the total allocation under Foruvard and Backward linkages, under the Scheme to DlCs of different participating States depending on the demand and extent of implementation. This money will be released to DlCs, only after obtaining an undertaking from the State Government regarding full utilization of the funds already

TfrIIC ACTIVITIES 4ND PROGRAI',IIUIES

I<uIC ACTTVTTIES AND PBOG R AIvtNtES

(0 Once the project proposals are received by KVIC, KVlBs, DlCs 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 ny tne KVIC State Office/ KVIBs/ DlCs to enable the entrepreneurs to track their application status at any point of time. Till such time the etracking system becomes fully operational disaggregated data in respect of progress of

provided under the erstwhire FMRy rraining and premotivationar campaigns. Any unspent baranc-e avairabre under the training and contingencies of erstwhire pMRy scheme wiil be utirized for. training and rerevani explnaiture under PMEGp. Drcs wiil submiimonthry utirization report to KVIC in this regard.

(d)

The Task Force wiil hord quarrerty meeting with the Banks at district rever to review the statuJ of the pioject proposats. whereverthe projects are rejected, the .on."rn"i.nInr *irr furnish shortcomings/reasons to the imprementing rglnd", concerned and KVrc/KVrBs / Drcs wiil ask tneip[ticants concerned to provide additional information/documents, ir required. The concerned representatives of KVrc, xvrg, and Dlcs, wiil provide assistance to the appricants in this process. since the Bank's representative will also be a rnember of the Task Force, it needs to be ensured that bank sanctions maximum number of projects; creared by the Task Force. chairman of the District risk Force wirr review the performance of Banks and the loan repayment / recovery
(g)

each application, assistance availed by beneficiaries belonging to special categories (category wise)'
employment details, etc., willbe maintained by KVIC/KVIBs/ DlCs 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/ DlCs. This is done to help the beneficiaries and the processing/sanctioning functionaries to identify and monitor the progress of implementation.

(e) Banks will take their own credit decision

the cleared by the Task Force. However, they will appiaise projects both technicaily and economicaily-after ensuring that each pCIect fulfills inter alia the criteria of

on the basis of viability of each project. No coilaterarsecuritywiil be insisteo upon by Banks in rinerryith the guiderines oti{grroiproj".t, involving loan up to Rs. S lakh in respect of projects

Once the project is sanctioned and before. the first installment of the Bank Finance is released to the beneficiary Bank wil! inform the State/Regional Office of the KVIC/KVIBs/ DlGs, as the case may be, for arranging EDP training to the beneficiary, if he/she has not already undergone such training. lf he/she has
already undergone such training of at least 2 weeks duration, such beneficiary need not undergo further EDP training.

(i) tndustry (ii) per Capita lnvestment (iii) Own Contribution (iv) RuralAreas and (v) Negative List

(h) (i)

First installment of the loan will be released to the beneficiary only after completion of EDP training.

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

Task Force arso furfiil these requirements at thit stage itserf so as to avoid delays in approval of loans in Banksl

It is essentiar.that the apprications creared by the District

0)

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

T{IIIC ACTTVTTIES AND PROGRAMMES

(k)

After the rerease of Bank finance either parfly or fuily, will submit M19in Money claim to ttre'Oesignat"j Bank NoO.t Branch 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,'wiilsubmit the consoridated craims to the designated Nodar Branch of their sponsoring Bank

(p)

ln case any recovery is effected subsequently by the.Bank from any s-orr"e whltsoever, such recovery will be utilized by the Eiank 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/ lnodernization of the project, margin money assistance is not available.

'ln the_case of projects financed by srDBr, the guiderines issued

(0

bv srDBr for rerease of roan/margin

,on"yiliio" r"iri*"..

Though the margin money (subsidy) wi, be reteased by the designated Nodal Branch oitne eani,rivtd D6;r-thl tinar authority to either accept project/craim or r"l";i'oaseo lhe on the parameters of the Scheml.

sanciioned 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, 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-sigl . board at the main enirance of his/her project site' BanU KVIC/ KVIB/ DIC are to ensure it.

MarginMoneyassistanceisavailableonlyfornewprojects

intheeventofobjectionbyKVlC/KVIB/Q]!.thebeneficiary

KVIBs/ DlCs. There will be a separate by KVrc/ system of acknowledging grievances or complaints anO a montnfy report wi, be prepared on grievances l compiaint","tlir.o and the status / action taken for their. redressal.
(m) once the Margin.Money is released
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"
in favour of the loanee,

!gf-1leo grounds for rejections sha, be rnaintained

Financed By ...

..

;.,:,^.. Under

(Unit Name) (Bank), District Name

interest will be paid on the TDR and no interest wilr be charged 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.ornt after three years from the date of first disbursement to the borrower/ institution, by the Bank.

Prime Ministeis Emplolment Generation Programme (PMEGP) Khadi and Mllagelndustries Commission (Ministry of MSME, Govt. of lndia)

12.
12.1

Ehtreprenetlrship Development Programme(EDP)

The objective of EDP is to provide orientation.and awareness pertaining to various managerial and operational functions ig" finan&, production, marketing, enterprise management, bankiiig formalities, bookkeeping, etc. The duration for EDP

(o) ln case the Bank,s advance goes ,,bad,, before

year period,
du_e-

to liquidate the roan riabirity or tne borrower

or full.

beneficiary, the Margin Money wiil

to reasons, beyond the control of the

the three

'

te adjusted ny ine eanr< "itn"i,n

p.rt

wiil be two weeks (10 working days). This will also include inteiaction with succbssful ruralentrepreneur, banks as well as orientation through field visits:

,IIIIC

ACT

ES AND PROGBAilIMES

Ktttc acrivnrcs AND PBaGRAMIuIES

The EDp wiil be conducted through KVrc, KVIB Training centers and Accredited rraining -centres'run uy Clntrat Government, NSIC, national level Entrepreneurship Development rnstitutes (EDrs), such as rndian rnstitute of Entrepreneurship (llE), State Governments, Banks, reputed NGOs., and other organizations / insiituiion., identified by the Government from time to time. EDp is mandatory for ail the pMEGp beneficiarier, beneficiaries who have undergone EDp eariierof "r""pitho." duration not less than two weeks.

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, Zonall National and lnternational levels, Buyer-Seller Meets, etc., for the benefit of PMEGP beneficiaries.

13.

estabrishment and working status of each of ".tr"t the uniG, set up under pMEGp_ including those set up through t(\/lg, and Drcs, through state GJvernment agencies and/or by outsourcing the work to professionallnstitute, n"ring expertise in this area. Banks, Dlcs and l(/lBs will coordinate and assist KVrc in ensuring 100 o/o prrvsicar verin."iion. KVrc wifi submit quarterry re-portsto ri" fuiniriry;

Physical verification of pMEGp Units KVtc wiil make 1o0o/o physicar verification of the

15. 16.

Registration
Registration with the KVIC/ KVlBsl State DlCs under the Scheme is voluntary. This is al5o free of any charge.

Submission of Report
Beneficiary will submit quarterly report about production, sales, employment;wages paid etc. to the State/Regionat Director'of the KVIC/KVI,B/DIC for subrhission to the Ministry of MSME.

14.. .Awareness

ffiffi.

Camps

17.

Monitoring of PMEGP
The Ministry of MSME is the controlling and monitoring agency for implementation of the scheme

14'1 KVlc and Drcs wiil organize awareness.camps, in crose

for project formuration and to Bank for

Corporations, AWWA, NyKS, reputed f.fObrlri Employment exch.anges. ln each disirict t*o .rrp. *ilf be.pernritted, one by KVrc in coordination with'con[in"o KVIB and another by Dtc. A committee wiil rnortri.t ff" beneficiaries and send them for training *arG Hrbs

coordination with each other and KVrBs to poputarize ano to educate potentiar beneficiaries about tne scneme uotn in rural and urban areas. The awaren"." *irr'i'i*rr" participation from the unemproyed men"rrp. .no *o*"n with special 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 ation t1 this regard from state rever organizations rike sc/sr

"" i.r""t

"rr,.tion

I
KIIIC ACTItr/4INES AND PRO,GRAMMES

KIIIC ACTIVITIES AI{D PROGRANIMES

6.

VI,
Salient points on prime Minister,s Employment Generation programme (euestions and Answers)
1.

What is the primary objective of the pMEGp?

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

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. What is Village lndustry?
Any Village lndustry 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 orwithout the

7.

2.

ls there any minimum qualification prescribed for the beneficiary?

Yes. Vlll standard o-ass.folseJting up of project costing above Rs' 10 rakh in the manufacturing ie;toi lno above Rs. 5 lakh in the business/service r""toi. 6ir,e,liise there is no specific educational qualification.

use of power and in which the fixed capital investment per

head of a fulltime artisan orworker 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.

3. Whb can avail loan under the Scheme?

lndividuars, institutions, p'oduction co-operative societies, charitable trusts and Self H"lp drorprl Does KVrc/KvrB/Drc direcry fina nce u nder the scheme? No. KVIC provides Margin Money only through bank under

What is the quantum of Margin Money available to different categories of beneficiaries?

Beneficiaries from urban areas are eligible tor 21o/o Margin
Money.

4.

Beneficiaries from rural areas are eligible tor 35o/o Margin Money. What is the percentage of entrepreneuds own contribution for availing assistance?

PMEGP.

what are the conditions to be furfitted for assistance under the S;h;;;;-- to become etigibre
The unit should be new. Per capita investment (capital expenditure in workshedl workshop and machinery'per e m ployee/worker/a rtisan) ,91*td not be more than ns i.OO lakh in plain areas and Rs 1.50 lakh in hitty area. Pass vlll standard if project cost is above Rs 10 lakh for manufacturing enterprise and more tnan Rs 5 rakh for service enterprise. Othenryise no qualification required. Any industry except those included in negative list.

lnstitutions, lndividuals and Self Help Groups beneficiaries 5o/o of project cost. They may be both from rural and urban areas.
of North Eastern Region are to contribute 10. Who are not eligible to avait assistance under this Scheme?

Existing Units Units that have already availed Subsidy under any other scheme of the Central and State Grivernments 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 negative list.

TfiTTC

ACTTW ES

ATTD PROGRAMMES

KIIIC ACTII/ITIES AI{D PROGRAfuTMES

11' rs it necessary that the apprications under pMEGp are to be sponsored

by any dovernment Department or by KVIC, KVIB or DtC? No' The beneficiary can directty approach bank atong with project proposar or submit apprication lig{ner to KVrc/KVrB/ glC any case application has to be approved by the Task Force.

18. 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?

No

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

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

12' How the roan apprications are processed in the banks?

Banks will appraise the projects tephnically and economically and take their own credit decision on the basis of ,iroitity.

21. Banks? Who else finance under this scheme in addition

13. Whether the_existing units are erigibre for assistance under

r'No

the scheme?

/ ,/ ./ ./

to Public Sector
All Regional Rural Banks
Co-operative banks and Private SectorScheduled Commercial Banks approved by State LevelTask Force Committee

14' Can the beneficiary receive the Margin Money direc*y from the
KVIC?
margin money is paid to the financing bank on beharf of the beneficiarv through the nodal Uani. "
N-o, th9

Small lndustries Development Bank of lndia

22. Describe the significant features of the Scheme.

r' {

15. Can the financing bank pass on the ilargin Money direcfly to the beneficiaryi
No, the bank can not pass on the margin money to the beneficiary
in cash.

,/ ,/ ,/ ,/ ,/ ./ ,/ / { ./

16. How the bank utitizes the Margin iloney?

On receipt of margin money, the bank will keep it in fixed deposit in the name of the beneficiary tor *r-rlrye"rr then adjust the amount in the roan account "no of the beneficiary on receipt of adjustment letter from the KVIC.
ls there any ceirin_g on project cost for difftrent categories of enterprises? lf so, whit is the amount? Yes. The maximum cost of the projecuunit admissibte under manufacturing sector is Rs.25' laih. The maximum cost of the projecuunit admissibre under business/service sector is Rs. 1b lakh.

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 Money is highest compared with any other self-employment scheme in operation. lt is a banker-friendly scheme; because bankercan 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.

7'

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

lndividuals Registeredinstitutions Production co-operative societies Charitable trusts and Self Help Groups.

r' /

KIIIC ACTIVITTES AND

PROGBAIUINTES

I<IIIC ACT,I/,ITIIES AND PROGRAIfiNIES

24. Whether bank can charge interest on full amount

30. How beneficiary can apply for benefit under the Scheme?

./

financed, that is, 95% of project cost? No, Bank can charge interest on 60 or 70 percent of the project cost (totalfinance-margin money) depending on the type of beneficiaries. in STD in favour of beneficiary? No. Financing bank on receipt of Margin Money will keep the amount in STD in favourof the beneficiary; but no interest is payable on that amount as the bankwill not charge interest on the margin money amount. bank finance if the borrowers do not avail entire bank finance?

,/

Beneficiary can apply in prescribed format along with his/ her scheme either to KVIC/KVIC/DIC or to Bank. PMEGP?

31. What is the procedure for selection of beneficiary under

25. Whether Bank interest is payable on Margin Money put

./

On receipt of applications KVICiKVIB/DlC/Bank will

,/

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.

32. Whether bank can outright reject an application?

26. Whether the entire Margin Money can adjust against

./,

./

No, if sanction is accorded under Cash Credit (CC),

borrowers will have to avail 100o/o CC limit at least once in three years and the average use of CC limit should be not less than 75o/o of CC limit. lf 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.

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

33. Whether financing bank can claim Margin Money from

KVIG/KVIB/DIG? 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 installment of loan.

34. Whether bank can submit Margin Money claim after

27. 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.
EDP

,/

sanctioning Ioan? No. Upon sanctioning the project financing bank has'to inform KVIC/KVIB/DIC aslhe case may for imparting EDP
training along with a copy of the sanction letter.

28. Beneficiaries who are exempted from undergoing

35. When bank can disburse loan?

,/

training? lf they have already undergone such training of at least 2

weeks duration such beneficiary need not underEo further EDP training.

,/ 36. Is there any application form for sponsoring for EOe

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

29. Whether registration of unit with KVIG is compulsory under the Scheme?

,/

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'

No

IWIC ACTNITIES AND PROGRANINIES

I<IIIC ACTIVITIES AFI D

P RO GRANINIES

37. ls there any specific form for Margin Money claim?

./

vil
KVISIN NORTH EASTERN REGION
KVIC has a Zonal Office for the North Eastern Zone at Guwahatiand State Office in allthe 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.
Each State has a State Khadiand Village lndustries Board (KVrB).

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.

,/ '/ ,/ ,/ ,/ ./ '/ ./ /

38. 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. contribution.

Copy of ledger abstract in support of deposit of own

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

There are 60 directly aided institutions in the region. The state-wise numbers of directly aided institutions 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 khadiand village industries run by different agencies' These are:

1. 2. 3. 4. 5. 6.

Multi Disciplinary Training Centre, Doimukh, Arunachal Pradesh run by a directly aided institution of KVl.
Khadi Gramodyog Vidyalaya, Kumarikata, Assam run by a directly aided institution of KVl.

Demonstration-cum{raining Centre, Potteryat Dharamtul in Assam underAssam Khadi and Village lndustries Board.
Khadi Gramodyog Vidyalaya, Roha, Nagaon District, Assam

run byAssam Khadi and Village lndustries Board.

Khadi &Village lndustriesTraining Centre, Zimabalk,Aizawl, Mizoram run by Mizoram Khadi and Village lndustries Board. Multi DisciplinaryTrainingCentre, Nagarjan, Dimapur, under Nagaland Khadi & V.l. Board.

KIIIC ACTIVITIES AI{D

PROGRATUTDIES

KIIIC ACTIV ITIES

AT{ D PRO GRANITVIES

tx
A.
1.

KVIC DEPARTMENTAL TRAINING 9ENTRES NORTH ZONE

Multi Disciplinary Training Centre, Gandhi Darshan, Rajghat, New Delh i- 11 0002 Phone: 01 1 - 23392T OB, 233923g3, Fax: 011-23392708

Central Palmgur and Palm Products lnstitute, No. 44, Kumarappapuram, Post. Madhavaram Milk Colony, Chennai- 600051, Phone & Fax: 044-25555402.
D.
1.

WEST ZONE

C.B. Kora lnstitute of Village lndustries, Shimpoli Road,

Borivali(W), Mumbai-400092, Phone & Fax: 022-28981105.
Dr. B.R. Ambedkar lnstitute of RuralTechnology & Man.agement

Ch. Charan Singh Multi Disciplinary Training Centre, p.O. Panjokhera, Dist. Muzatl arnagar - 247 44S, phone : 0 1 392225356, Fax: 0 1 392 -2653288
3.

and lnstitute of Renewable Energy, TryambakVidya Mandir, N a s h k- 4222 1 3, P h one : 0253-2280362, 228057 6, 2281 049,
i

Multi DisciplinaryTraining Ceptre, p.B. No. 27, Rampur Road,

Fax: 0253- 2280362

G.

Haldwani, Dist. Nainital-263139, phone& Fax OS}46-22C416 4.

N. Multi Disciplinaiy Training Centre, Agar Road, Dahanu,

27 801

Sahastradhara Road, Dehradun- Z4BOO1, phone: 013586 Fax: 01 35-2627 241

EAST ZONE

Multi Disciplinary Training Centre, Uppar Adhoiwala,

Thene-401601, Phone & Fax: 02528-222626.

Central Bee Research and Training lnstitute, 1153,

Ganeshkhind Road, Pune-411 016, Phone: 020- 25675865
5.

B.
1.

Multi Disciplinary Training Centre, Udyogpuri,

p.

O. Khandagiri,

Mahaima Gandhi lnstitute for Rural lndustrialisation,

Manganwadi, Wardha- 442001, Phone & Fax: 07152-240328.

Near Gandamunda Chhak, Bhubaneswar- 751030, Fhone & Fax: 0674-2350724

2.

3.

Dr. 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 1 Multi Disciplinary Training'Centre, Vidyapith Road, Abhoy
Ashram Campus, Post- Birati, Kolkata- 700051 phone: 03325390554 Fax: 033-2539201 1.

c.
1.

SOUTH ZONE
Multi Disciplinary Training Centre, post- Nadathara, Trichur680751, Phone & Fax: 0487-2310681 Multi DisciplinaryTraining Centre, Doovani Nagar, Near FCI Godown, Bangalore-560016, phone & Fax: OgO-256S029s

2.

3.

Central Village Pottery lnstitute, post- Khanapur-591302, Dist. Belgaum Phone& Fax. 08336- 222232.

KIIIC ACTIVITIES AND PROGRALTMES

KVtcAcTNmre41ry4PE11.

x
KVIC NON.DEPARTMENTAL TRAINING CENTRES
1.

Ashram, P.O. Patranga, Dist. Barabanki- 225408, Phone: 05271-31304. Ambedkar Nagar- 224112, Phone: 05271-88743, 44158
Khadi Gramodyog Mdyalaya, P.O' Surapur,A!!a.r!U!

Khadi Gramodyog Vidyalaya, Kshetriya Shri Gandhi

Khadi Gramodyog Vidyalaya, Tam ulpurAnchalik Gramdan Sangh, P.O. Kumarikata, Dist. Baksa- 781360, ( Assam) Phone & Fax :03624-23504, Gram- GRAMDAN.
Multi Disciplinary Training Centre, Arunachal pradesh Seva

12.

Pi:l

(0),45579
13.

(R).

'

2.

Sangh, Doimukh-791 112, Dist. Papumpare,(Arunachal

Pradesh) Phone: 0360-2277395, 2100694 Fax 0360-222721A. 3.

New Weavers Vdyalaya, Chenganachery Social Service Society, P.O. Mallapally (West), Dist. PatnanamthittaOSSSaS lferala) Phone : 047 3.1821 1 8, Fax: 0481 -422540' New Weavers Vidyalaya, Cannanore Sarvodaya Sangh, P.O. Tikkoti, Meladi, Pin-673529 (Kerala), Phone: 0490231983 (O), 0497-851154 ( R). New Weavers Mdyalaya, Kerala Sarvodaya Sangh, PostCivil Station, Gandhi Ashram, Calicut- 673020, Phone:

KhadiGramodyog Vidyalaya, Gram Nirman Mandal, Sarvodaya Ashram, P.O. Spkhodeora, Dist. Gaya - 80S106 (Bihar) Khadi Gramodyog Vidyalaya, KhadiAshram, post. Dhanna, Dist. Ambala- 134201 (Haryana) Phone: 07194-T11OA,

14.

4.

Gram: KHADIASHRAM.
5.

15"

Khadi Gramodyog Samayukta Sangh, p.O. Bengarim, Hubli- 580023 Dist. Dharwad, Phone-0936-286193, bram:
FEDERATION.
6.

Khad i Gramodyog Vdyalaya, (Texti Ie Chem istry), Karnataka 16.

u95-371701.
KhadiGramodyog Vidyataya, Gandhi Samarak Gram Seva

,'

Kasturba lvlahila Khadi Gramodyog Vidyalaya, Gandhi National Memorial Soeiety, Aga Khan palace, pune411006, 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.

Kendrm, P.O. l,{athiittuiunnam, North Paravur, Dist' Emakulam-68351 3, Phone: 0484442232, 444449'

17.

7.

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 Khadi Kendra, Mllage- Chandmari, Post. Gayeshpur, Dist' Nadia741234,, Phone: 829393.

18.

8.

19.

9.

Dr. J.K. Kumarappa lnstitute of Rural Technology and

Development, Gandh i Niketan Ashram, Pin- 626Z 02 (Tamil Nadu), Phone: 04549-26325, Gram: VIDYALAYA.

Sharad Samagra Gramin Mkas Sanstha, Carpentry and Blacksmithy Training Centre, lngolw Chowk, Near Dr' Adalakhiya'i Hospital, Malgujaripura, Salu (Kate), Wardha' Phone: 07152-82027,82028 H.O- 46087,43067 '

10.

Khadi Gramodyog Vidyalaya, Kshetriya Shri Gandhi Ashram, P.O. Sevapuri, Dist. Varanasi- 221403, Phone:
0542-630205 (O), 630346(R) Gram: ASHRAM.

20. SamagraMkasParishad,WoollenHosieryTrainingCentre' Near iavin Gatla Mandi, Sitapur Road, Lucknow- 226020, Phone: 0522-324679(0), 456698 ( R)'

rlvrc ACTlVrTrEs ANp PROGRAMMES

21.

KIIIC ACTNTTIES AT{D

PROGR,,J|'ITVIES

lajasthan V.idyapur Kul, Gokut Bhai Bhatt Khadi jy. rayr, p. O. 9 ll1 gOvog Research ana fia in'ing-Vi h aOoi (HP),
Dist. Udaipur, phone: OZeSil-iiZA.
.,1

xll
List of other Agencies who can Assist Applicants
i)

22.

Rural. Food lndustry Training tnstitute, Shiksha Mandal Premises, Near Sewagram Riitw"y St"tion, Dist. Wardha_ 442001.

Field Offices of KVIC and its State offices KVI Boards District lndustries Centre (DlC) Banks/Financial I nstitutions. KVI Federation Department of Women and Child Development (DWCD), Nehru Yuva Kendra Sangathan (NYKS), The Army Wives WelfareAssociation of lndia (AWWA) and panchayati Raj lnstitutions NGOs having at least five years experience and expertise

ii)

23. Sambalpur Silk and Gramodyog Samiti, National Rural Resource Education and Training-C.niiu, At- Kharumunda, P.O.-Tainsar, Dist. Deogarh- ZAOjf qOrissa), phone: Head Office- 06641-6253, Reg. Omce_ Oa{i_zZtZO.

iii) iv) v) ix)

. :
1.

xl
x)

KVI BOARD'S TRAINING CENTRES Shri T.S. Gokhale Khadi and V.f . Training an{ Researc.h lnstitute, 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.

in Project Consultancy in Small Agro & Rural lndustrial

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 GovernmentAgency for any of its programmes in the preceding 3 years period.
xi)

2.

Professional I nstitutions/Iechnical Colleges recog nized by GovernmenUUniversity and University Grants Commission (UGC)/ All lndia Council for Technicat Education (AICTE) having department for vocational guidance or technical courses providing skill based training like lTl, Rural Polytechnic, Food Processing Training lnstitute, etc.

ix)

Certified KVI institutions aided by KV|C / KVIB provided these are in category A+, A or B and are having required infrastructure, manpower and expertise for the role. Departmental and Non-Departmental Training Centres of KVIC/ KVlBs.

KIl I C. ACTIV ITIES AN D P RO G R AIIMES

xi) xi)
xii)

and Medium Enterprises Deveropment rnstitutes (MSME- Drs), MSME Toor Rooms and rechnicar Development Centres, under tne ,ominislratir" i""iL, Office of Development Commissioner, "r MSME.
Nationar smar,rndustrie.s.corporation,s (NSrc) offices, Technical Centres, Training bentres, tncubators and Training cum lncubation Ceirtres (TlCs) ,"t ,p in
Mode.

Micro, sma[

eee

Nationar rever Entrepreneurship Deveropment rnstitutes rike National lnstitute for Entrepr"ri"r*nip lnd smail Business O"y:looln"nt (N I ESBU D), Nationat tn&itute for Micro, S mail and Medium Enterprises (NTMSME) and rndian rnrtitrt" ot (t I E), G uwa nati Jir Jei the adm in istrative llli:ry"r:yl:lip control of Ministry of MSME, their branches and the lnlrelreneurship Devetopmeni Centres (EDCs) ;p their Partner lnstitutions

(pls).

*t

;;

xiv)

U.dyam.i.Mitras empanefle9-y1!"r, Rajiv Gandhi Udyami Mitra .Yojana of Ministry of MSME.

xv)

PMEGp.Federation, wheneverformed.

6ffi

qenrarrlr

srFmr{ Qilftf{rerqq ll ARE YOU AN UNEMPLOYED Desirous to start Your own venture
DO APPROACH

KVIC/KVIB/DIC AND AVAIL BENEFIT OF

PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME

(PMEGP)
Margin Money suRport 35% in Ruralareg ;',.ii:
,,t:i

Margjn Money supPort

25Vo in Urban area

Tel. & Fax :

(0p,8..$.-2)

22E546, e:mai I : ath u bakvp@yah oo,co. i n

OR

NAGALAND KHADI & VILLAGE INDUSTRIES BOARD NEAR NEW SECRETARIAT COMPLEX : KOHIMA-797001 A370-2270013 & DISTRICT OFFICES OF NAGALAND KVI BOARD

OR DIRECTORATE OF INDUSTRIES & COMMERCE, GOVT. OF NAGALAND & DISTRICT INDUSTRIES CENTRES OR NATIONALIZED I REGIONAL RURAL BANKS