Khadi and Village Industry
Commission
Gurleen Kaur
Khadi connotes the beginning of economic freedom and equality for all in the country. It must be taken with all its implications. It means a wholesale swadeshi mentality, a determination to find all the necessities of life in India, and that too, through the labour and intellect of villages
KVIC• statutory body formed by the Government of India• under the Ministry of Micro, Small and Medium Enterprises ,with regard to khadi and village industries within India
• Formed on 1956• First Director of KVIC was Late Sardar KA Venkataramaiya, a veteran freedom fighter from Karnataka
• head office is based in Mumbai, with its six zonal offices in Delhi , Bhopal , Bangalore ,Kolkata , Mumbai and Guwahati.
KHADI• hand-spun and hand-woven cloth• Khadi was launched in 1920 as a political weapon in the Swadeshi movement of Mahatma Gandhi.
VILLAGE INDUSTRY
• Any Industry that is located within a rural area• where the Fixed Capital Investment per Artisan (weaver) does not exceed Rupees One hundred thousand
Relevance of Khadi and Village Industries
• Labour intensive -both Khadi and Village Industries is that they are labour intensive in nature
• Economically viable option :-they require little or no capital to set up
Objectives of the Commission
• The Social Objective - Providing employment in rural areas
• The Economic Objective - Providing saleable articles
• The Wider Objective - Creating self-reliance amongst people and building up a strong rural community spirit.
Grouping• Agro Based and Food Processing Industry (Fruit and
Vegetable Processing, pulses processing ,village oil etc)• Polymer and Chemical Based Industry (Soap Industry,
Leather Industry )• Forest Based Industry (Medicinal Plants Industry, Bee
Keeping Industry)• Mineral Based Industry (Lime)• Handmade Paper and Fibre Industry (Handmade Paper
Industry, Fibre Industry)• Rural Engineering and Bio – Technology Industry (Non –
Conventional Energy , Electronics)• Service Industry
Function of KVIC• Planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural areas.
• Training of persons employed or desirous of seeking employment
• To build up reserves of raw materials and supply them to persons engaged or likely to be engaged in production of handspun yarn or Khadi or Village Industries.
• To provide financial assistance to institutions or persons engaged in the development and operation
• Studies of the problems.
Schemes and Programs of the Commission
• Prime Ministers Employment Generation Program (PMEGP)
• Interest Subsidy Eligibility Certification Scheme (ISEC)
• Rebate Scheme
Budgetary Support to the Commission
• Grants A major part of the Khadi grant is being utilised for the payment of sales rebate, which is a promotional expenditure. Other expenditures are: Training, Publicity, Marketing, Interest Subsidy on bank loans under ISEC scheme
• Loans Expenditures include: Working Capital Expenditure and Fixed Capital Expenditure. Fixed Capital expenditure further consists of expenditure on -
a) Machinery.....100000 b) Implements....50000 c) Work sheds....25000 d) Sales Outlets etc.25000
Sales of Khadi and Village Industry Products
• The products produced by the institutions are either sold by them directly, through retailers, wholesalers, or indirectly, through "Khadi Bhandars"
• In total, there are 15431 sales outlets, out of which 7,050 are owned by the commission
• also sold internationally through exhibitions arranged by the commission
CONCLUSION
• KVIC helps Glamorize Our Traditional Fabric• KVIC deals with employment opportunities for artisans and craftsmen in rural areas.
• KVIC makes KHADI as the textile of the future • KVIC is taking steps towards the welfare of artisans