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Khadi and 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 1,00000 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.

Interest Subsidy Scheme

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.


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