As on today following schemes are being
implemented by the Khadi & V.I. Board.
(A) Interest Subsidy
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 %.
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.
Industry (Pottery, Lime Stone, Stone Cutting, Crushing, Paints, Plaster of Paris
Industry (Hand Made Paper, Aggarbattis, Exercise Books, Fibre etc.)
Agro Based and
Food Industry (Packing of Food Products, Sweets Making, Fruit & Vegetable
Polymer and Chemical
Based Industry (Leather Goods, Plastic Items, Shampoo, Detergent
and Washing Powder etc.)
Non-Convention Energy (Electric Goods, Blacksmithy, Wooden & Steel
(Excluding Khadi) ( Cotton, Silk, Polyvastra, Textile, Carpet Weaving etc.)
(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 :-
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.
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.
Any Project which causes Environment Problems :
Manufacturing of Polythene carry bags and other items, which cause environmental
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.
projects above Rs. 10.00 lakhs and upto Rs. 25.00 lakhs, rate of Margin Money will be 25%
Rs. 10.00 lakhs + 10%
of the remaining cost of the project.
Margin Money (Other Categories)
SC/Women/Es.-Servicemen & OBC, the rate of Margin Money grant will be enhanced to @
instead of 25% given
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.
Money will be one time assistance form KVIB. For any enhancement of credit limit the
assistance will not be available.
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
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)
form for PRODIP click here
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:
following can apply under this Programme, which will be sanctioned on project basis:
Any Public institution which is a Central or State Government department or agency,
agency, research institution, University or its affilatited college, which receives funds
fully or partly from
Central or State Governments.
KVIC department trading units or KVIB
Directly aided or listed Khadi or Village Industries Institutions
KVIB aided or listed institution
Institutions or individuals under margin money scheme (REGP)
Type of activities that can be taken up:
Upgrading quality of raw material
Improvement in production processes
Product development, design intervention
Better packaging and labeling
Improvement in Sales Outlets (focusing an
layout and display)
are NOT ALLOWED:
Any proposal for Civil Construction work.
Any proposal for purchase of furniture or fixtures or other items exceeding
Rs.40,000/- from scheme.
Any proposal for purchase of Capital equipment exceeding Rs.40,000/- from scheme
How to apply:
Any institution/ individual
who wishes to avail support under this Programme should apply to the
respective State/ Regional Director of the KVIC.
The application should be
in prescribed application form. This application form is available with:
& Village Industries Board.
Regional office of KVIC.
Coordination Cell, IT directorate, KVIC, Irla, Vile-parle (west) Mumbai 56.
KVIC Cell, NID,
Application form can be down loaded from this site as well as http://www.kvic.org.in
Application form could be filled up in English or Hindi.
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.
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:
The National Institute of Design, Ahmedabad, has prepared a wide panel of approved designers.
applicant may choose the designer from this whole list. This list is constantly being increased and
The State/ Regional Director of KVIC has also the list of identified designers.
This approved list is also available on Web http://www.kvic.org.in
The local Resource Institution of your state can also function as a
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.
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.
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.
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.
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:
Projects having multiplier effect
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.
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 NIDs approval and the approval of
Committee, which sanctioned the project.
The final release may take some time, and therefore the institution may be prepared
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 applicants 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.
NIDS 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.
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.