KVIC

Empowering Rural India: The Role of Khadi and Village Industries Commission (KVIC)

In the diverse landscape of India, where rural communities form the backbone of the nation, it is important to protect these communities and the art, traditions, and skills these communities have to offer. One of the helpful ways to do this is by protecting and promoting the businesses started and carried out by these communities. That way, not only are we promoting our culture, but we are also giving impetus to our economy.

KVIC or the Khadi and Village Industries Commission was set up by the government in 1957, with the same intention in mind. The Khadi and Village Industries Commission (KVIC) plays a pivotal role in transforming the lives of millions through its promotion of khadi and village industries. This blog explores the significance, history, initiatives, and impact of KVIC in driving sustainable development in rural India.

KVIC: Latest Updates

Let's start with a quick look at the latest of the many activities of KVIC:

• The Khadi and Village Industries Commission (KVIC), a statutory body under the Ministry of MSME, organised the Scheme of Fund for the Regeneration of Traditional Industries (SFURTI) Mela at Dilli Haat, New Delhi. The SFURTI Mela was held from 1st October 2022 to 15th October 2022.
  For the first time, a national-level exhibition of Traditional products from SFURTI clusters took place to promote Azadi ka Amrit Mahotsav. SFURTI, initiated by the MSME Ministry, aims to promote cluster development.
• On 25th January 2023, the Chairman of Khadi and Village Industries Commission (KVIC), Manoj Kumar, disbursed a margin money grant of Rs 100.29 crore to 3,223 beneficiaries from Uttar Pradesh, Madhya Pradesh, Chhattisgarh, and Uttarakhand. This grant came from the Prime Minister Employment Generation Programme (PMEGP) implemented by KVIC, which is a government initiative aimed at promoting employment generation.
  • Initiatives are being undertaken under the Gramodyog Vikas Yojana of KVIC to enhance the economic and social well-being of artisans. These initiatives include providing advanced training and tool kits through schemes like Kumhar Sashaktikaran Yojana, Honey Mission, Charm Karigar Sashaktikaran Yojana, Incense Sticks Making, Handmade Paper, and more, as mentioned by Kumar.
  • Kumar further highlighted that as of the year 2021-22, a total of 7.84 lakh units had been set up under PMEGP, leading to employment opportunities for approximately 63 lakh individuals. He also mentioned that the disbursement of the margin money grant of Rs 100.29 crore will create around 26,000 new employment opportunities.
• On 8th February 2023, the chairman of Khadi and Village Industries Commission (KVIC), Manoj Kumar, disbursed a margin money subsidy amounting to Rs. 100.55 crores to 1,463 beneficiaries from the western region, including Goa, Maharashtra, Gujarat, Daman and Diu, and Dadra-Nagar Haveli. This subsidy was linked to the sanctioned loan of Rs. 304.65 crores under the Prime Minister Employment Generation Programme (PMEGP) scheme.
  • The Prime Minister Employment Generation Programme (PMEGP) scheme allows entrepreneurs to establish units with a maximum project cost of up to Rs. 50 lakh in the manufacturing sector and up to Rs. 20 lakhs in the services sector. Under this scheme, the Government of India provides a grant of 15% to 25% of the total project cost to beneficiaries in urban areas and 25% to 35% in rural areas. This grant serves as financial support for setting up the units.
  • In addition to the financial assistance, beneficiaries also receive free entrepreneurship development training after the loan approval. This training will equip them with the necessary skills and knowledge to become established entrepreneurs. The objective is to empower individuals and help them succeed in their respective business ventures, contributing to their economic growth and the overall development of the region.
• According to a statement made on 26 February 2023 by Khadi and Village Industries Commission Chairman Manoj Kumar, the government's prominent PMEGP scheme has witnessed the approval of more than 8 lakh projects. This significant achievement has led to the creation of employment opportunities for over 68 lakh individuals. The scheme, aimed at promoting entrepreneurship and supporting small businesses, has played a crucial role in generating sustainable livelihoods.
  • Furthermore, Chairman Manoj Kumar highlighted that a substantial amount of "margin money subsidy" totalling over Rs. 21,000 crores has been disbursed under the Prime Minister's Employment Guarantee Programme (PMEGP) to date. This financial support has been instrumental in empowering entrepreneurs and facilitating the establishment and growth of their ventures.
  • The PMEGP scheme, along with the disbursed margin money subsidy, has not only contributed to job creation but also fostered economic development and self-reliance among individuals across various sectors and regions. It continues to be a key driver of inclusive growth and plays a pivotal role in realising the government's vision of a self-sufficient and empowered nation.

Overview and Features of KVIC:

Now, let's gather some in-depth knowledge about KVIC and its functions and features.

What is KVIC?

KVIC stands for Khadi and Village Industries Commission. It is a statutory body formed under the Ministry of Micro, Small and Medium Enterprises (MSMEs), Government of India. KVIC came into being in 1956 to promote and develop khadi and village industries across the country.

The primary focus of KVIC is to provide financial assistance such as in the form of KVIC loans, support, and guidance to artisans, weavers, and entrepreneurs engaged in traditional industries like khadi, handlooms, village industries, and handicrafts. KVIC plays a crucial role in preserving and promoting the cultural heritage and traditional skills of rural artisans.

Features of KVIC:

A well-known organisation that strives to develop and promote Khadi and village industries in India is the Khadi and Village Industries Commission (KVIC). The following are some of KVIC's projects:

• Production of Khadi: The hand-spun and hand-woven cloth known as Khadi is the main emphasis of KVIC. It seeks to sustain and revitalise the historic Khadi industry by giving craftsmen work opportunities and encouraging environmentally friendly, sustainable practices.
• Development of Village Industries: KVIC also strives to promote the growth of a variety of village industries, including handicrafts, agro-based businesses, beekeeping, pottery, leathercraft, soapmaking, and more. Giving them training, advice on how to improve their enterprises, and financial support, helps rural entrepreneurs and craftspeople.
• Employment Creation: Creating employment possibilities in rural and semi-urban areas is one of KVIC's main goals. It decreases migration from rural to urban regions by supporting Khadi and village industries with offerings such as KVIC loans, which opens up opportunities for self-employment and entrepreneurship.
• Skill Development: KVIC places a strong emphasis on enhancing the abilities of craftsmen and business owners working in the Khadi and village industries. It holds workshops, training sessions, and skill-upgrading activities to improve the technical proficiency and product quality of its employees.
• Market Promotion: KVIC undertakes various marketing and promotional activities to increase the visibility and demand for Khadi and village industry products. It organises exhibitions, fairs, trade shows, and campaigns to showcase the diverse range of products and connect artisans with potential buyers.
• Financial Assistance: KVIC provides financial assistance to Khadi and village industry units through schemes like Prime Minister's Employment Generation Programme (PMEGP) and the Khadi Reform and Development Programme (KRDP). It offers KVIC loans, subsidies, grants, and margin money support to help entrepreneurs establish and expand their businesses.
• Social Welfare: KVIC promotes social welfare by empowering marginalised sections of society, such as women, Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC), through employment and entrepreneurship opportunities. It aims to uplift these sections economically and socially.

Structure of KVIC:

The Khadi and Village Industries Commission (KVIC) has been established as a systematic organisation functioning on multiple levels to ensure that it can reach as many businesses as possible. Branches of KVIC exist on the national, state as well as district levels. Let's take a look at the structure of the Khadi Village and Industries Commission:

1. State Khadi and Village Industries Boards (KVIBs): At the state level, KVIC works in coordination with State Khadi and Village Industries Boards (KVIBs). These boards play an important role in implementing KVIC's policies and programmes at the state level. They assist in the identification of potential recipients, facilitate training and skill development programmes, and promote the marketing and sale of Khadi and village industry products.
2. Regional Offices: KVIC has a network of regional, district-level offices spread across different regions of India called District Industries Centres (DICs). These DICs serve as decentralised units that implement KVIC's programmes, schemes, and initiatives at the grassroots level. They provide assistance such as KVIC loans, guidance, and support to artisans, entrepreneurs, and stakeholders in their respective regions.
3. Khadi Institutions and Village Industries: KVIC collaborates with various Khadi institutions, village industries, cooperatives, and self-help groups involved in the production and promotion of Khadi and village industry products. These institutions play a vital role in providing employment, skill development, and marketing support to artisans and entrepreneurs.
4. Training Centres: KVIC operates training centres and institutions that provide skill development programmes, vocational training, and technical assistance to artisans and entrepreneurs. These centres aim to enhance the capabilities and productivity of individuals involved in Khadi and village industries.
5. Collaborative Partnerships: KVIC works in partnership with other government agencies, financial institutions, NGOs, and private organisations to leverage resources, expertise, and support for the development of Khadi and village industries. Collaborative efforts help in expanding market reach, accessing funding such as KVIC loans, and implementing innovative initiatives.

KVIC Scheme Details:

The Khadi and Village Industries Commission (KVIC) implements various schemes to promote and support khadi and village industries in India. Some of the key schemes initiated by KVIC are:

1. Prime Minister's Employment Generation programme (PMEGP): This aims to provide sustainable self-employment opportunities to individuals by setting up micro-enterprises. It offers financial assistance in the form of loans for starting new projects or expanding existing ones.
2. Market Promotion Development Assistance (MPDA): MPDA scheme provides financial assistance for marketing activities such as participation in exhibitions, trade fairs, buyer-seller meets, and publicity campaigns to promote khadi and village industry products.
3. Interest Subsidy Eligibility Certification (ISEC): ISEC scheme offers interest subsidies to the beneficiaries of PMEGP. It helps in reducing the burden of interest on loans and promotes timely repayment.
4. Honey Mission: The Honey Mission scheme focuses on promoting beekeeping activities and honey production. It provides training, technical support, and financial assistance to individuals and groups engaged in beekeeping.
5. Kumhar Sashaktikaran Yojana (Potter Empowerment Scheme): This scheme aims to empower potters by providing them with improved equipment, training, and marketing support. It helps in enhancing the livelihood opportunities of potters and preserving the traditional pottery craft.
6. Coir Udyami Yojana: The Coir Udyami Yojana supports entrepreneurs in the coir industry by offering financial assistance for the establishment of coir-based units. It promotes the utilization of coir fibres and products.
7. Honey Mission (Madhukranti): This scheme focuses on the development of honey production and beekeeping activities. It includes the distribution of bee boxes, training programmes, and marketing support to beekeepers.
8. Market Development Assistance (MDA): The MDA scheme provides financial assistance to Khadi institutions and village industries for marketing their products. It covers expenses related to publicity, advertising, packaging, and marketing infrastructure development.

Benefits of KVIC scheme:

One of the prime and most well-known schemes implemented by the KVIC all over the country is the Pradhan Mantri Employment Generation Programme (PMEGP). The PMEGP aims to create jobs in rural and urban sections of the nation by starting new microbusinesses, projects, and self-employment activities.

PMEGP is in the hands of KVIC because of its efforts to bring together traditional craftspeople who are widely dispersed. Unemployed young people in rural and urban areas should be given as many options for self-employment locally as possible.

PMEGP also strives to provide a significant portion of traditional and aspiring artisans, as well as rural and urban unemployed youth, with ongoing and durable employment to stop the migration of young people from rural areas to metropolitan areas.

Let's take a look at some of the benefits the PMEGP comes with:

• Creating employment: The PMEGP focuses on establishing microbusinesses to assist in the creation of long-term job possibilities. It promotes people to start their own businesses and make money for themselves and their communities.
• Financial support: Offering financial support in the form of KVIC loans and subsidies is one of the PMEGP's main advantages. Eligible business owners can make use of financial assistance through this programme to launch their ventures, buy equipment and machinery, and cover working capital needs.
• Discounted Interest Rates: PMEGP provides KVIC loans with subsidised interest rates, making it more accessible for business owners to raise money. The lower interest rates lessen the borrowers' financial burden, which also makes it easier for their enterprises to expand and survive.
• Training and Skill Development: To strengthen the qualities of potential entrepreneurs, PMEGP encourages skill development and entrepreneurship training. Training courses offer a range of topics in company management, financial literacy, marketing tactics, and technological skills, equipping participants with the information and abilities necessary to operate profitable businesses.
• Focus on Rural and Semi-Urban Areas: A major objective of PMEGP is to encourage business development and job opportunities in rural and semi-urban areas. By promoting local production, traditional crafts, and village businesses, it seeks to renew and improve the rural economy.
• Promotion of Women Entrepreneurs: A major focus of PMEGP is the promotion of women entrepreneurs. It strives to empower women by offering financial help such as KVIC loans, skill development, and business support, enabling them to launch and effectively run their own enterprises.

Promotion of Traditional Industries: PMEGP is in favour of reviving and promoting Traditional Industries, including Khadi and Village Industries. It gives artisans and craftspeople a stage on which to display their talents, keep alive traditional crafts, and establish connections with markets for their goods.

Eligibility for the PMEGP:

• Age Requirement: PMEGP applications are only accepted from people who are at least 18 years old.
• Education Requirements: There are no particular educational requirements for PMEGP applications. It is accessible to people with various educational backgrounds, including school dropouts. Although, according to the revised 2022 terms,
• Citizenship: To be eligible for PMEGP, applicants must be Indian nationals.
• Project Cost: The project's total cost should not be more than Rs. 10 lakhs for the service sector and Rs. 25 lakhs for the manufacturing sector.
• Operation Sector: Micro-enterprises in the manufacturing and service sectors are eligible for the PMEGP. These categories should apply to the proposed business.

Documentation required to apply for PMEGP:

When applying for PMEGP you will need to submit certain documents for your verification. These documents include:

1. Caste Certificate
2. Special Category Certificate, wherever required
3. Rural Area certificate
4. Project Report
5. Education/ EDP/ Skill Development training certificate
6. Any other applicable document

The application process for a PGEMP Loan:

Step 1: Visit the Official Website: Go to the official PMEGP website (https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp) and read the guidelines so you understand the eligibility criteria, project cost limits, and other requirements.

Step 2: Prepare a detailed project report outlining your business idea, objectives, financial projections, market analysis, and other relevant information.

Step 3: Contact the District Industries Centre (DIC) or Khadi and Village Industries Commission (KVIC) office in your respective district to obtain the application form and gather information about the application process.

Step 4: Fill in the application form with accurate and complete details. Provide information about yourself, the proposed project, funding requirements, and other relevant information as per the guidelines.

Step 5: Attach the necessary documents along with the application form, such as identity proof, address proof, project report, educational qualification certificates, caste certificate (if applicable), and any other documents specified by the implementing agency.

Step 6: Submit the completed application form along with the required documents to the respective DIC or KVIC office. Make sure to retain a copy of the application for your records.

Step 7: The implementing agency will review your application and conduct necessary verifications. They may also provide guidance and assistance during the application processing.

Step 8: If your application goes through, the implementing agency will sanction the loan and disburse the funds accordingly. You may have to provide additional documents or complete any formalities as requested by the agency.

To summarise:

In conclusion, the Khadi and Village Industries Commission (KVIC) stands as a beacon of support and empowerment for the rural artisans and entrepreneurs of India. Through its various schemes and initiatives, KVIC has played a significant role in preserving traditional crafts, promoting rural entrepreneurship, and generating employment opportunities in the country.

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