Schemes

As on today following schemes are being implemented by the Khadi & V.I. Board.

(A)        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. In other words individual entrepreneurs were not covered under the scheme. The scheme remained enforce upto 31.3.95. 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 %.

 (B)        REGP Scheme :               To download the application form for REGP, click here.

                        This scheme was introduced in 1996 and presently the Board is implementing this scheme in a very concerted way. The loan under this scheme is sanctioned upto Rs. 25.00 lakhs in Rural Area* for establishing following Village Industries** :-

                          *Rural Area means any village, classified as such in revenue records irrespective of population and includes the area comprise of any town, the population of which does not exceed 20,000 (as per 1991 Census) or such other figure Central Government may specify from time to time.

                        **Village Industries means industry located in rural area which produce any goods or renders any service with or without the use of power in which the fix capital investment (on building and machinery) does not exceed Rs. 50,000 per capita.

 Group – I :             Mineral Based Industry (Pottery, Lime Stone, Stone Cutting, Crushing, Paints, Plaster of Paris
                             etc.)

 Group – II :             Forest Based Industry (Hand Made Paper, Aggarbattis, Exercise Books, Fibre etc.)

 Group – III :             Agro Based and Food Industry (Packing of Food Products, Sweets Making, Fruit & Vegetable
                              Processing etc.)

 Group – IV :            Polymer and Chemical Based Industry (Leather Goods, Plastic Items, Shampoo, Detergent
                               and Washing Powder etc.)

 Group – V :             Engineering and Non-Convention Energy (Electric Goods, Blacksmithy, Wooden & Steel  
                               Furniture etc.)

 Group – VI :             Textile Industry (Excluding Khadi) ( Cotton, Silk, Polyvastra, Textile, Carpet Weaving etc.)

 Group – VII :             Service Industry (Laundry, Plumbing, Electronics, Diesel Engine, Painting etc.)

                        Any project other than of the above mention seven groups can be considered for financing except the negative list as under :-

 (A)        Special Ethos of KVIC :-

                        Any Industry/Business connected with Meat (Slaughtered), its processing, canning and/ or serving items made of it as food, production/manufacturing or sale of intoxicant items like Beedi/pan/Cigarette etc. any Hotel or Dhaba or sales outlet serving liquor producing tobacco as raw materials, tapping of toddy for sale.

 (B)             Jurisdiction (Out of Bounds) :

                        Any Industry/Business connected with cultivation of crops/plantation like tea, coffee, rubber etc. sericulture (cocoon rearing), activities related to Coir, Horticulture, Floriculture, Pisciculture, Piggery, Poultry, Animal Husbandry, any project reducing yarn and cloth (Cotton, Woolen, Silk and Polyvastra) with the help of power textile made out of mill yarn.

 (C)        Any Project which causes Environment Problems :

                          Manufacturing of Polythene carry bags and other items, which cause environmental problems.

 Borrower’s Contribution

                        Under this scheme, the borrower is required to invest his minimum “own contribution” 10% of the total cost of the project in case of general and 5% in case of weaker section viz. SC/ST/OBC/Women/Minorites/Ex.-Serviceman etc.

 Margin Money (General Category)

 a)         25% of the project cost for the projects upto Rs. 10.00 lakhs will be provided as Margin Money.

b)         For projects above Rs. 10.00 lakhs and upto Rs. 25.00 lakhs, rate of Margin Money will be 25% of
            Rs. 10.00 lakhs + 10% of the remaining cost of the project.

 Margin Money (Other Categories)

 a)         For SC/Women/Es.-Servicemen & OBC, the rate of Margin Money grant will be enhanced to @ 30%
             instead of 25% given above.

 b)         The Margin Money is released, in favour of the loanee, by Haryana Khadi and Village Industries Board to
             the Bank and it is kept in term deposit receipt for 2 years at the financing branch and the  bank will not 
             pay any interest on the TDR and also not charge interest on the corresponding loan portion.

 c)         Margin Money will be one time assistance form KVIB. For any enhancement of credit limit the KVIB’s
             Margin Money assistance will not be available.

 TRAINING

                        Training is available in Trades mentioned above at various Institutes of KVIC/Recognized by KVIC at nominal cost. Those interested in learning the trades should contact DKVIO immediately.                 

                        ENTREPRENEURSHIP DEVELOPMENT PROGRAMME (EDP) TRAINING is also provided free of cost to each and every candidate selected for sanction of loan.

Procedure for getting Loan

                        The prescribed loan application form can be downloaded. The form duly filled alongwith Rural Area Certificate from the Sarpanch of the Village, Village Residence proof, Project Report and  .This form can be submitted  and further information if any can be obtained from concerned District Khadi and Village Industries Offices.

Download the application form for REGP

 Marketing Assistence

                        Haryana Khadi & Village Industries Board also provide marketing assistence to sale the products of the industries set up in KVI sector by organizing not only the district level khadi exhibitions but also the state level and Zonal level khadi Expos.

 (C)  PRODUCT DEVELOPMENT, DESIGN INTERVENTION AND PACKAGING (PRODIP)

To download form for PRODIP click here

Introduction:

                        KHADI AND VILLAGE INDUSTRIES COMMISSION has launched initiative for ‘Product Development, Design Intervention and Packaging’ (PRODIP) to help improve the quality and design of Khadi and Village Industries Products.

  Who can apply:

                        The following can apply under this Programme, which will be sanctioned on project basis:

  1.                    Any Public institution which is a Central or State Government department or agency, quasi Government
               agency, research institution, University or its affilatited college, which receives funds fully or partly from
               Central or State Governments.
  2.                    KVIC department trading units or KVIB
  3.                    Directly aided or listed Khadi or Village Industries Institutions
  4.                    KVIB aided or listed institution
  5.                    Institutions or individuals under margin money scheme (REGP)

Type of activities that can be taken up:

(i)                    Upgrading quality of raw material

(ii)                  Improvement in production processes

(iii)                 Tool improvement

(iv)                 Product development, design intervention

(v)                   Better packaging and labeling

(vi)                Improvement in Sales Outlets (focusing an layout and display)

Activities that are NOT ALLOWED:

1.                    Any proposal for Civil Construction work.

2.                    Any proposal for purchase of furniture or fixtures or other items exceeding Rs.40,000/- from scheme.

3.                    Any proposal for purchase of Capital equipment exceeding Rs.40,000/- from scheme

How to apply:

  1.                    Any institution/ individual who wishes to avail support under this Programme should apply to the
               respective State/ Regional Director of the KVIC.

  2.                    The application should be in prescribed application form. This application form is available with:

            i)             Haryana Khadi & Village Industries Board.

            ii)             The State/ Regional office of KVIC.

            iii)             Design Coordination Cell, IT directorate, KVIC, Irla, Vile-parle (west) Mumbai –56.

            iv)             KVIC Cell, NID, Paldi, Ahmedabad.

3.                    Application form can be down loaded from this site as well as http://www.kvic.org.in   or
             http://www.kvic.gov.in

4.                    Application form could be filled up in English or Hindi.

5.                    Application form should be filled up fully and properly. Additional information can be given in extra
            sheets. There is no need to send too many enclosures, at the time of application.

6.                    Application form should be filled up in triplicate.

 Designer/ Product Developer:

                        The application form should also have the details of the designers or ‘product developer’ or the professional who will be engaged for the project. It should also have his/ her consent by way of their signature.

How to identify the designer:

(i)                                The National Institute of Design, Ahmedabad, has prepared a wide panel of approved designers. The
                   applicant may choose the designer from this whole list. This list is constantly being increased and
                    upgraded.

(ii)                              The State/ Regional Director of KVIC has also the list of identified designers.

(iii)                             This approved list is also available on Web http://www.kvic.org.in OR http://www.kvic.gov.in of KVIC.

(iv)                             The local Resource Institution of your state can also function as a ‘Designer’.

(v)                               New names can be added to the panel by contacting NID.

                        However, it should be noted that an approved designer or professional is a compulsory requirement for taking up a project.

Preliminary expenses:

                        It is likely that the applicant – beneficiaries will incur some preliminary, pre-approval expenses before project is sanctioned. This will include expenditure for activities like travel of designer to institution for study, cost of preparation of application form etc. Such expenditure has to be met by the applicant, but can be shown as part of the 25% own contribution. (See the project cost chart in the application form).

                        Of course, if the project is not sanctioned finally, then this will be borne by the applicant it self.

Financial Support:

For Institutions: Assistance will be limited to Rs.2.00 lakhs (Two lakhs) or 75% of the total project cost whichever is lower for KVI Institutions.                                                         

For Individuals: Assistance will be limited to Rs. 1.00 lakh (One Lakh) or 75% of the project cost, whichever is lower in  case of individuals.  

Note:  There is no limit placed on the project cost but financial assistance from KVIC will be restricted as mentioned above.

Own Contribution:

                        The applicant has to bear atleast 25% of the project cost. KVIC would appreciate if the applicant meets more than 25% of the costs. This will indicate his seriousness and commitment for the project, which is for his own benefit. This could be in various forms like (i) Preliminary expenditure (ii) Travel and contingencies (iii) Value of materials given for experiment (iv) Cost of labour, all of which should be reflected as contribution in figures. There is no need to actually pay or contribute this 25% as Cash or deposit the amount.

Sanction process:

                        The project proposal will be scrutinized by a local Committee of which the State/ Regional Director is the Convener. If satisfied, it will be approved. Normally priority will be given to:

(i)                                Projects having multiplier effect

(ii)                              Projects which fit into identified themes given by KVIC from time to time.

                        It may be required that the applicant and/or designer are called for discussion/ clarification during the sanction meeting. In such cases, the applicant or the designer must attend the meeting at their own expense.                                                                                                                                                 

Release procedure:

                        Once project is sanctioned, the State Director will release 30% of the total project cost to the applicant to help the projects get started.

                        Thereafter, the institution, through their designer shall report to KVIC Cell, National Institution of Design, Paldi, Ahmedabad – 380009 about the progress of projects. The NID, on satisfaction, shall instruct the State Director to release the second, third and final installments

                        In very small projects of less than Rs.50,000/- the NID may reduce the release to three installments instead of usual four installments to reduce paper work.

The releases will be made as follows:

·                      First release of 30% of project cost after sanction of project, by the State Director, to get the work started.

·                      Second and third releases, amounting to 30% of project cost will be released by State director after
            receiving NID report.

·                      Final release (balance 10%) will be made by the State Director only after NID’s approval and the approval of
            the Empowered Committee, which sanctioned the project.

                        The final release may take some time, and therefore the institution may be prepared for this.

Period of Project:

                        The period of project should normally not exceed nine months from date of sanction.The Empowered Committee while sanctioning will specifically fix the time frame in which the project is sanctioned.

Critical role of designers:

                        The designers have a important role not only in terms of design support but giving hand holding support to the institutions in filling of form, follow up etc., particularly because many of the applicant’s working in rural areas may not be conversant with design project issues. Therefore, there is no objection if they follow up the matter with NID or with State Office, as a facilitator.

                        However, all payments will be made to the applicant – beneficiaries only and they shall make the payment to the designers promptly and appropriately.

NID’S service Costs:

                        The State Directors shall make the payments due to NID as their ‘service costs’ (included in the project cost) directly to NID, from out of project costs and not to the institutions.

Reporting formats:

                        It will be seen that after the project is sanctioned the institution will have to report to NID at various stages, and only after this further installments will be sanctioned. Institution may prepare the reports themselves or ask the designer, whom they have engaged, to help in sending  the reports, but their consent and signature would be required.  In the end of a project, a Designer report in NID format would be essential.

Download form for PRODIP