Village Industries Board keeping with its mission to uplift the rural
poor, provides financial assistance for establishing Village Industries.
These Village Industries make use of the locally available raw materials
and help to build up a strong rural economy in terms of money and wealth.
The products of the Village Industries are sold in different part of
the state. The financial assistance extended to the people by the Board
is as per the approved norms of KVIC.
Village Industry has been clearly defined by the Board as those units
which provide employment to a person for every 50,000 Rupees of investment,
and those that are established in villages. However, service industries
like laundry, road side shops, barber shops etc can be based in the
urban areas. Some of trades/ industries that can be taken under this
are, Fruit & Vegetable Processing, Drinking water Technology, Engineering
Industries Technology, Information Technology etc.
The Board offers several financial schemes that provides best employment
opportunities to the villagers. The schemes are intended to help the
rural communities to set up industrial units with minimum investment
and yielding good returns. The Board restricts its assistance to only
those products which are healthy and eco-friendly. Over the years the
Board has assisted many village industrial units that provide innumerable
employment opportunities to the villagers.
The Pattern Assistance Scheme, The Consortium Bank Credit Scheme, Rural
Employment Generation Programme (REGP), Margin Money Scheme and, the
Board offers have resulted in the setting up of many successful industrial
units in the state. At present, Prime Minister’s Employment Generation
Programme (PMEGP) is the main scheme under which the Haryana Khadi &
Village Industries Board is assisting youth in rural areas to set up
village industries for employment generation.
Today, Haryana Khadi & Village Industries Board is the leading organization
in the promotion and popularization of Khadi as well as in promotion
of both traditional and modern industries in Haryana.
Khadi & Village Industries Board implemented this Scheme w.e.f.
1987-88. This scheme was applicable only for Khadi & Village Industries
in regard to capital Expenditure and working capital requirement to
raise loan for financial institution. The scheme envisages that interest
payable to the banks will be subsidised by the Commission and the quantum
of the subsidy will be limited to the difference between the actual
rate of interest charged by the financing institutions and the initial
4% to be borne by the borrower. The scheme was applicable to only Co-operative
Societies and registered institution. The Scheme remained enforce continue.
Under this scheme 129 units were assisted involving an amount of Rs.
2.57 crores approximately. Since 01.04.1995, this scheme is applicable
to Khadi Industries only and the rate of interest is 4.5%.