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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

A MISSION

To create employment opportunities in the non -farming sector in the rural areas.

To produce saleable articles or to provide services'

To support rural development in its widest sense and to improve the qualitY of life.

IT'S MOTTO

To ensure employment at door steps' To ensure production by the masses'

To harness human technologY'

To preserve environment.

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

Topics

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 KVIC Departmental Training Centres

L

9. KVIC Non-Departmental/ KVI Board's Training Centres

1 0, List of Other Agencies who can Assist Applicants

Page No.

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r<tnc AcTtvIrIES AND-Lr4qqE4

The Beginning:

KhadiandVillagelndustriesCommission(KVIC)isa

an Act of Parliament (No 61 of 1956

iZ of 1987). lt was established in April

KVIC and it took over the work of the formerAll lndia

created by

Act trto

lndustries Board set up in 1950. lt is eng_aged

promoting and developing Khadi and village

statutory body

-by

,,

"r"id"d

1957 as

Khadi and Village

in the task of

lndustries (KVl) with a viewto creating employmentopportunities

in the rurai areas, thereby strengthening

control of Ministry of Micro,

the rural economy.

lt

functions under the administrative

Small and Medium Enterprises, Government of lndia'

Objectives:

The broad objectives of the KVIC are:

' The social objective of providing employment ;

' The economic objective of producing saleable

articles, and

' The wider objective

amongst the people communitY sPirit.

of creating self-reliance

and building up a strong rural

Functions:

KVIChasbeenchargedwithth6functionofplanning,

of programmes for

promotion, organization and implementation

ine Oevetopm6nt

areas

of khadi and other

village

industries in the rural

in coordination with other agencies engaged in rural

development.

Its functions also comprise building up of a'reserve of

rawmaterialsandimplementsforsupplytoproducers,creation

ofcommonservicefacilitiesforprocessingofrawmaterialsas

;;-ii;;h"o

goodr and provision of facilities for marketing

of

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

I<IIIC ACTIWTIES AND PBOGRANIMES

( ii)

](/lCisalsochargedwiththeresponsibilityofencouraging

and promoting

emptoyed in

pro'utems relating

conventional

research in the production techniques and equipments

the K/l sector and providing facilities for the study of the

to the same. lt also promotes the use of non-

energy, bio-fertilizer and other organic products'

Further, KVIC is entrusted with the task of providing

financial assistance to institutions and persons who are engaged

and operation of Khadi and village lndustries

in the development

and guiding ti-rem

through supply of designs, prototypes and other

technical information.

lmplementation of Khadi Programme:

KVIC promotes and extends financial support for

implementation of Khadi Programme through

and cooperative societies. Besides

Programme departmentally

and through

lndJstries Boards. ln

registered inslitutions

it implements Khadi

state Khadi and Village

the process of implementation of the

programme, KVIC extends support in the form of loan and grant

and working capital in subsidies rate of generate employment opportunities for

the traditional artisans, thereby promote traditional artistic skills and pioducts for which the country enjoys pride recognition'

interest.'Such activities

ilnOir capital expenditure

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

fibres play a vital role in providing g_ainful

of any two or all

employment and also play a trucial role in our economy. These

mostly labour intensive and the abundant labour force

uniis ire

available in our country

units do not require

caters to their needs. Besides, these

large capital investment, too. They aleo have

the advantage of absorbing high rate of traditional ekill'

lncentives for Khadi Artisans:

l. Artisans'Welfare Trusts

To support and safeguard the future

tt't? a.+F?I'B working

9f

under Khadi, in" fVtC has constituted Artisdn'l Wclfare Trusts

wherein 12o/owages contribution is collEC-tod frOm fftlfans and

production. The fundr rrO.mrnlgcd by the

Trusts providing security of savinga of Khrdl fi'tlrlnr,

12o/ois paid through

IiIIIC AC.TTYITTES AND PBOGBAMMES

!1.

( iii)

Janshree Bima Yojana Scheme: . '

.-" ,:

,,,','; ''

All KhadiArtisans have been covered under Jqnashree

Bima Yojana Scheme. This Scheme provides insurance cover

against death and disability besides, children

allowances are also eligible under

edudatlonal

:

this Scheme.

lll,

Workshed for KhadiArtisans:

'

'

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.

Village lndustries:

, 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

employment.

feasible way to

gener'Stdtirural

:

:,,.

j.

Prime Minister Employment Generation Programme:

.:':

-

.:'

.:

.,.r1

:.

:t,:1.t,

r,.,t:.,

''

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

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-

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.

Awareness Programmes:

l(/lG conductsArrareness camps in each districtwherein

extensive dissemination of information about the self-employment

opportqnitbs

throggh PMEGP b made to the potential beneficiaries

mmmon man as well. Ofificials from l(VlC, l(VlBs, DlCs,

and

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

ifepresentdives

N(iOs,

ulem

participants'

9ch9m9 1o.tf9

ftom l(l/lc, Kfl B, DistridAdministration, Banks,

lntellecfuab,'media etc" used tq take part in it. lt enriches

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-

Peoples Education Programme: '

Thb programrreb organired atthedisffictand block level

irwolving

cirens

sfiderils of scfimls, @lleges and unirrerrifio, the ftrture c tma besires irreflecfinb, prominmt petsonalities, disffid

adminisfiattn, benkers, press and medh €ilc. Thc pmgramme has

r<r/tC ACTMTIES AI{D pROcRAItfivtES

(v)

two parts- Essay and Debate competitions on ruralentrepreneurShip

development

potential

with the involvement of student community, the

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.

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'

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:

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.

KLIIC ACTNITIES AND PROGRANTNIES

(vi)

Research and DeveloPment:

ln order to make village industries competitive and self-

sustaining,

and

KVlc provides thrust on Research and Development,

coutd achieve a lot. KVIC has taken up Research and

Development projects with Nation's most prestig ious institutes, I lT5.

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

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'.

Marketing:

KVIC has been playing a catalyst role by providing

supporting

inputs to its NGOs, institutions for marketing of KVI

products manufactured by them. The institutions have been

provided funds for opening sales outlets and conducting

exhibition-cum- sale to sell their products with an aim to penetrate in the domestic and global market.

KVIC has launched three common brand namee i'e'

Khadi, Sarvodaya

globally

irng"

is

and Desi Aahar for making KVI products

competiiive through quality driven brands. Khadl brand

brand for village industry

Desi Aahar for food

products. sarvodryr product

is tor knaai products. Sarvodaya

products.

consists of toilet soap, pickles, agarbattl, honcy etc' and

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.

r<ltrc AcTrvIflES AND PRoGEAJi|IMES

(vii)

Non-conventional energy:

lnordertomeetupthechallengeoffuelrequirement,

of Non-Conventional Energy Programme'

implementation

identification of

potential beneficiaries, setting up of Biogas plants

under the technical guidance of Rural Energy Technicians are taken

on extensive wiy. There is provision of Central Government

up

subsidy in orderto encourage and to support village entrepreneurs'

RURAL INDUSTRIES SERVIGE CENTRE (RISC)

Itisthecommonfacilityunit,which'aimstoprovide

the local units to

their production capacity, skills ?nd n'larket promotion and

and necessary services to

skill upgradation, training, quality

and productrdevelopment

in order

the rural clusters. lt is implemented by various agencies

infrastructural support

upgrade

balkward fonruard linkage to Khadi & V.l. activities in a cluster,

services like raw materiaisupport,

control, testing facilities, design

to strengthen

tike t{/il,

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

RURALINDUSTRIESCoNSULTANGYSERVICECELL(RlcS):

TomakePMEGPschememoreeffectiveandaccessible

to the new entrepreneurs,

consultancy service

entrepreneurs

co-ordination

KVIC has launched Rural lndustrial

(Rlcs) under which first generation

are provid'ed services, such as prpject formulation,

with banks, technical backup, marketing support,

etc. such incentives will help new entrepreneurs to set up projects,

which will be more viable and better manageable'

Ministry

of Micro, Small and Medium Enterprises'

lndia has introduced a Scheme called "Scheme

of Traditional lndustries (sFURTl)

will support at least 500 traditional

Government of

of Fund for Regeneration

Under this scheme KVIC

artisans

through

in a cluster in skil! upgradation, cFC and marketing

reputed NGOs. This is a S-year project for overall growth

and for generating sustainable income

NodalAgency for the programme''KVIC

of tne-traditional industry

for artisans. KVIC is the

is imptementing 79 SFURTI clusters in the country'

KITIC ACTIWTIES AND PBOGRANINIES

(viii)

Science & Technology:

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.

l(/lC 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 Non-

DepartmentalTraining

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 Co-

operative 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.

I<I]IC ACTNITIES AND PBOGRANINIES

lt

A FEW CONCEPTS OF KHADIAND VILLAGE'INDUSTRIES

1. Khadi

"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

" Polyvastra

" means any cloth woven on handloom in

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.

4. Ruralarea

lndia from yarn

" RuralArea " means -

i) Any area classified as Village as per the revenue

recordS of the State/ U.T., inespective of population.

ii)

lt also includes an area even if classified as town,

provided its population does not exceed 20,000.

K!,TIC ACTIVITIES AND PBOGRAIVTMES

ilr

An lliustrative List of Villase lndustries

Group-l: Mineral Based lndustrv:

(1) Cottage Pottery lndustry

(2)

(4)

(5)

(6)

(7)

(8)

(e)

(10)

Lime Stone, Lime Sfell and other lime

products industry

(3) Stone cutting, crushing, carving and engraving fortemfles 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.

(11) Manufacture

(12) Manufacture of

of Bangles,

Paints, Pigments, Varnishes and Distemper

Toys

(13) Manufacture of Glass

(14) Glass Decoration-Cutting, Designing and polishing,

, Group- ll: Forest Based lndustrv:

(16) Handmade paper,

(17) Manufacture of Khata,

(18) Manufacture of

(19) Manufacture of Shellac,

Gums and Resins,

(20)

(21)

Cottage Match lndustry, Manufacture of Fire works and

Agarbatties,

,

Bamboo and cane work,

(22) Manufacture of paper cups, plates, bags, and other paper

containers.

(23) [f;;f*dre

of exerciee book binding, cnvelop making,

r.egister making, including all

stationeryitems made of paper,

(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)

I{IIC ACTIVITIES AND PROGRAYINIES

(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,

Group- lV: Polvmer and Chemical Based lndustrv:

(49) Flaying, curing and tanning of hides and skins and ancillary

industries connected with the small and cottage leather industry

(50) Cottage soap industry,

(51) Manufacture of rubber goods (dipped, latex products) (52) Products out of Rexin, (53) 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

(58) Manufacture of essential oils,

(59) Manufacture of shampoos, (60) Manufacture of hair oil, (61) 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 from cow dung and other waste products (Such as flesh of dead animals, night soils etc.)

(66)

Vermiculture and waste disposal,

(67)

Manufacture of paper pins, clips, safety pins, stove pins etc.

(68)

Manufacture of decorative bulbs, bottles, glass etc.

(6e)

Umbrella Assembling,

(70)

Solar and wind energy implements,

(71)

Manufacture of handmade utensils out of brass,

(72)

Manufacture of handmade utensilb out of copper,

(73)

Manufacture of handmade utensils out of Bell metal,

(74)

Other articles made out of Brass, Copper and Bell Metal,

(75)

Production of Radios,

(76)

Production of Cassette playerwhether or not fited with Radio,

(77)

Produclion of cassette recorderwhether or not fitted with radio,

(78)

Production of voltage stabilizet

(7e)

Manufacture of electronic clocks and alarm time pieces,

(80)

Carved wood and artistic furniture making,

(81)

Tin Smithy,

(82)

Motor winding,

(83)

Wire net making,

(84)

lron Grill making,

(85)

Manufacture of "ruraltransport vehicles such as handcarts,

bullock carts, small boats, assembly of bicycle, cycle

(86)

rickshaq motorized carts etc. Manufacture of m usical instruments.

I<IIIC ACTNNT'E.S AilD PROGRAfrIIilES

Grouo-Vl: Textile lndustrv (Excludino Khadi):

(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)

Laundry

(e7)

Barber.

(e8)

Plumbing,

(es)

Servicing of Electric Wiring and electronics domestic

(100)

appliances and eQuipments, Repairs of diesel engines, pump sets etc.,

(101)

Tyre vulcanizing unit,

(102)

Agriculturc seMcing forsprayers, insecticides, pump sets etc,

(103)

Hiring of sound system like loud speaker, amplifiq mike etc.,

(104)

Battery charging,

(105)

Art Board painting,

(106)

fi::':fff ir shops'

(107)

(108)

Band Troupe,

(10e)

Motorized local boat (Fibre glass) for Goa only,

(110)

Motor cyole to ply as Taxi ( For Goa only)

(111)

Musical lnstruments (For Goa only)

(112)

Motor cycle taxi,

(113)

Dhabas (Not serving liquor, Meat, Fish, Egg etc.),

(114)

Tea Stal,

(115)

lodized Salt.

Wrc ACTIVITIES AND PROGEAITIMES

Negative List of Activities

Activities under Negative list (not eligible for assistance under

PMEGP) are:

a) Any industry/business connected with Meat (slaughtered), i.e.

processing, canning and/or serving items made of it as food,

production/manufacturing or sale of intoxicant items like

Beedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale.

b) Any industry/business connected with cultivation of crops/

plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon

rearing), Horticulture, Floriculture, Animal Husbandry like

Pisciculture, Piggery Poultry Harvester machines etc.

c) Manufacturing of Polythene carry bags of less than 20

microns thickness and manufacture of carry bags or

containers made of recycled plastic for storing, carrying,

dispensing or packaging of food

which causes environmental

stuff and any other item

:

,

problems.

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

advantage of Khadi Programme under the purview of

Certification Rules and availing sales rebate.

e) Rural Transport (Except Auto Rickshaw in Andaman &

Nicobar lslands, House Boat, Shikara & Tourist Boats in

J&K and Cycle Rickshaw).

I<IIIC ACTIJ/TTIES AND PROGRATUT]i|IES

v

.PRtME MINISTER'S EMPLOYMENT

GENERATIONPROGRAMME

1. lntroduction

(PMEGP)

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

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.

2. Objectives

(i) To generate employment opportunities both in rural and urban areas of the country through settihg up of new self-

em ployment ventures/ proj ects/ m icro enterprises.

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

and urban unemployed yguth and give them self-employment

opportunities to the gxtent pgssible, at their place.

(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.

(iv) To increase the wage earning capacity of artisans and

contrib'ute to increase in the growth rate of rural and urban employment.

KlI IC ACTN ITTES AT{D PROGRAII{IuIES

'1. Quantum and Nature of FinancialAssistance

Categories of beneficiaries under PMEGP

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

4. Geiling Limit of Project cost

Beneficiary's

conkibution

(of project cost)

Rate of Subsidy

(of project cost)

 

Urban

Rural

1}Yo

15o/o

25o/o

05%

25Yo

35o/o

05o/o

25Yo

350/o

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

b) The maximum cost of the project/unit admissible under.

business/service sector is Rs. 10 takh.

Note:

c) Project cost will include Capital Expenditure and one cycle

of Working Capital.

d) Cost of the land should not be inctuded in the Project cost.

e) 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.

0 Projects without Capital Expenditure are not eligible for financing under the Scheme.

g) 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-

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T<IIIC ACTNilTIIES AND PBOGBAJWMES

5. Eligibility Conditions of Beneficiaries

a)

Age: Any individual above 18 years of age.

b)

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

d)

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

e)

Sel