The Khadi and Village Industries Commission (KVIC) is a

statutory body A statutory body or statutory authority is a body set up by law (statute) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being Primary and secondary legislation, empowered or deleg ...

formed in April 1957 by the

Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...

, under the Act of Parliament, 'Khadi and Village Industries Commission Act of 1956'. It is an apex organisation under the

Ministry of Micro, Small and Medium Enterprises The Ministry of Micro, Small and Medium Enterprises is the Ministry (government department), ministry in the Government of India. It is the apex executive body for the formulation and administration of rules, regulations and laws relating to Sm ...

, with regard to

khadi Khadi (, ), derived from khaddar, is a hand-spun and woven natural fibre cloth promoted by Mahatma Gandhi, Gandhi as Swadeshi movement, ''swadeshi (of homeland)'' for the freedom struggle of India and the term is used throughout the Indian sub ...

and village industries within India, which seeks to — "plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in

rural development Rural development is the process of improving the quality of life, quality of life and economic well-being of people living in rural areas, often relatively isolated and sparsely populated areas. Often, rural regions have experienced rural povert ...

wherever necessary". In April 1957, it took over the work of former All India Khadi and Village Industries Board. Its head office is in

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

, whereas its six zonal offices in

Delhi Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, but spread chiefly to the west, or beyond its Bank (geography ...

Bhopal Bhopal (; ISO 15919, ISO: Bhōpāl, ) is the capital (political), capital city of the Indian state of Madhya Pradesh and the administrative headquarters of both Bhopal district and Bhopal division. It is known as the ''City of Lakes,'' due to ...

Bengaluru Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...

Kolkata Kolkata, also known as Calcutta ( its official name until 2001), is the capital and largest city of the Indian state of West Bengal. It lies on the eastern bank of the Hooghly River, west of the border with Bangladesh. It is the primary ...

and

Guwahati Guwahati () the largest city of the Indian state of Assam, and also the largest metropolis in northeastern India. Dispur, the capital of Assam, is in the circuit city region located within Guwahati and is the seat of the Government of Assam. Th ...

. Other than its zonal offices, it has offices in 28 states for the implementation of its various programmes.

Important terms

Khadi

''"The livery of freedom"'' –

Mahatma Gandhi Mohandas Karamchand Gandhi (2October 186930January 1948) was an Indian lawyer, anti-colonial nationalism, anti-colonial nationalist, and political ethics, political ethicist who employed nonviolent resistance to lead the successful Indian ...

Khadi Khadi (, ), derived from khaddar, is a hand-spun and woven natural fibre cloth promoted by Mahatma Gandhi, Gandhi as Swadeshi movement, ''swadeshi (of homeland)'' for the freedom struggle of India and the term is used throughout the Indian sub ...

, (pronounced Khādī) refers to hand-spun and hand-woven cloth. The raw materials may be cotton, silk, or wool, which are spun into threads on a charkha (a traditional spinning implement). Khadi was launched in 1920 as a political weapon in the

Swadeshi movement The Swadeshi movement was a self-sufficiency movement that was part of the Indian independence movement and contributed to the development of Indian nationalism. Before the BML Government's decision for the partition of Bengal was made public i ...

. Khadi is sourced from different parts of

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

, depending upon its raw materials - While the silk variety is sourced from

West Bengal West Bengal (; Bengali language, Bengali: , , abbr. WB) is a States and union territories of India, state in the East India, eastern portion of India. It is situated along the Bay of Bengal, along with a population of over 91 million inhabi ...

Bihar Bihar ( ) is a states and union territories of India, state in Eastern India. It is the list of states and union territories of India by population, second largest state by population, the List of states and union territories of India by are ...

Odisha Odisha (), formerly Orissa (List of renamed places in India, the official name until 2011), is a States and union territories of India, state located in East India, Eastern India. It is the List of states and union territories of India by ar ...

and North Eastern states, the cotton variety comes from

Andhra Pradesh Andhra Pradesh (ISO 15919, ISO: , , AP) is a States and union territories of India, state on the East Coast of India, east coast of southern India. It is the List of states and union territories of India by area, seventh-largest state and th ...

Uttar Pradesh Uttar Pradesh ( ; UP) is a States and union territories of India, state in North India, northern India. With over 241 million inhabitants, it is the List of states and union territories of India by population, most populated state in In ...

and

. Khadi poly is spun in

Gujarat Gujarat () is a States of India, state along the Western India, western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the List of states and union territories ...

and

Rajasthan Rajasthan (; Literal translation, lit. 'Land of Kings') is a States and union territories of India, state in northwestern India. It covers or 10.4 per cent of India's total geographical area. It is the List of states and union territories of ...

while

Haryana Haryana () is a States and union territories of India, state located in the northern part of India. It was carved out after the linguistic reorganisation of Punjab, India, Punjab on 1 November 1966. It is ranked 21st in terms of area, with les ...

Himachal Pradesh Himachal Pradesh (; Sanskrit: ''himācāl prādes;'' "Snow-laden Mountain Province") is a States and union territories of India, state in the northern part of India. Situated in the Western Himalayas, it is one of the thirteen Indian Himalayan ...

and Jammu and Kashmir Karnataka are known for the woolen variety. There are a wide range of Khadi personal care products manufactured in Uttarakhan
Khadi Products - Handmade and Natural

Trademark

Khadi and Village Industries Commission holds the exclusive rights to use the trademark "Khadi" and "Khadi India". The National Internet Exchange of India Domain Dispute Policy (INDRP) Arbitration Tribunal in New Delhi rejected the contention of a private entity that "Khadi" is a generic word.

Village Industry

Any Industry that is located within a rural area, where the Fixed Capital Investment per

Artisan An artisan (from , ) is a skilled craft worker who makes or creates material objects partly or entirely by hand. These objects may be functional or strictly decorative, for example furniture, decorative art, sculpture, clothing, food ite ...

(weaver) does not exceed One hundred thousand Rupees. The Fixed Capital Investment can be changed by the

whenever it so requires.

Objectives of the Commission

The commission has three main objectives which guide its functioning. These are - *The Social Objective - Providing employment in rural areas *The Economic Objective - Providing saleable articles *The Wider Objective - Creating self-reliance amongst people and building up a strong rural community spirit. The commission seeks to achieve these objectives by implementing and monitoring various schemes and programs.

Implementation of Schemes and Programs

The process of Implementation of schemes and programs starts at the

which is the administrative head of the programs. The Ministry receives funds from the Government of India, and routes these to the Khadi and Village Industries Commission for the implementation of programs and schemes related to Khadi and Village Industries. The Khadi and Village Industries Commission then uses these funds to implement its programs either directly - Through its 29 state offices, by directly funding Khadi and Village institutions and co-operatives, or indirectly through 33 Khadi and Village Industries Boards, which are statutory bodies formed by the state governments within India, set up for the purpose of promoting Khadi and Village Industries in their respective states. The Khadi and Village Industries Boards, in turn, fund Khadi and Village Institutions/Co-operatives/Entrepreneurs. At present the developmental programmes of the commission are executed through, 5,600 registered institutions, 30,138

Cooperative A cooperative (also known as co-operative, coöperative, co-op, or coop) is "an autonomy, autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned a ...

societiesAbout us - Delhi Khadhi and Village industries Board
Government of Delhi. and about ~95

lakh A lakh (; abbreviated L; sometimes written lac) is a unit in the Indian numbering system equal to one hundred thousand (100,000; scientific notation: 105). In the Indian 2, 2, 3 convention of digit grouping, it is written as 1,00,000. F ...

people.

Schemes and Programs of the Commission

Prime Ministers Employment Generation Program (PMEGP)

Launched on 14 August 2008 The Prime Minister's Employment Generation Programme (PMEGP) the result of the merger of two schemes - Prime Minister's Rojgar Yojana (PMRY) and The Rural Employment Generation Programme (REGP). Rural beneficiaries receive up to a 25% margin compensation in rural areas and 15% in urban areas for the general category and 35% in rural areas and 25% in urban areas for SCs, STs, OBCs, minorities and women among other special categories.

Interest Subsidy Eligibility Certification Scheme (ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) Scheme is the major source of funding for the Khadi programme. It was introduced in May 1977 to mobilise funds from banking institutions to fill the gap in the actual fund requirement and its availability from budgetary sources. Under this scheme, loans are provided by the banks to the members to meet their working/fixed capital requirements. These loans are provided at a concessional interest rate of 4% p.a. The difference between the actual interest rate and the concessional rate is borne by the commission under the 'grants' head of its budget. However, only members producing Khadi or Polyvastra (a type of Khadi) are eligible for this scheme.

Rebate Scheme

The rebate on sales of Khadi and Khadi products is made available by the Government so as to make the price of Khadi and Khadi products competitive with other textiles. Normal rebate (10 per cent) all through the year and an additional special rebate (10 per cent) for 108 days in a year, is given to the customers. The rebate is allowed only on the sales made by the institutions/centers run by the Commission/State Boards and also at the sales centers run by the registered institutions which are engaged in the production of Khadi and polyvastra. Recently, the finance ministry has asked the micro, small and medium enterprises ministry to redraw its rebate scheme for Khadi and village industries. Its view is that the "ministry should approach the plan commission and not seek year-to-year extension of the scheme. Furthermore, it has asked the MSME ministry to redesign the scheme in a manner that it should benefit the artisan and not the seller, which (has been) the case so far" With regard to this, A proposal received from the commission for introducing Market Development Assistance as a possible alternative to Rebate on Sale is being considered by the

Government A government is the system or group of people governing an organized community, generally a State (polity), state. In the case of its broad associative definition, government normally consists of legislature, executive (government), execu ...

Budgetary Support to the Commission

The Union Government through the Ministry of Micro, Small and Medium Enterprises, provides funds to the Commission under two heads: Plan and Non – Plan. The funds provided under the 'Plan' Head are allocated by the commission to its implementing agencies. The funds provided under the 'Non – Plan' head are mainly for the commission's administrative expenditure. Funds are provided mainly by a way of Grants and Loans.

Grants

A major part of the Khadi grant is being utilised for the payment of sales rebate, which is considered a promotional expenditure. Other expenditures under this head are: Training, Publicity, Marketing, Interest Subsidy on bank loans under ISEC scheme

Loans

Expenditures under this head include: Working Capital Expenditure and Fixed Capital Expenditure. Fixed Capital expenditure further consists of expenditure on - a) Machinery.....1000000 b) Implements....500000 c) Work sheds....250000 d) Sales Outlets etc.250000

Sales of Khadi and Village Industry Products

The products produced by the institutions are either sold by them directly, through regovernment) In total, there are 15,431 sales outlets, out of which 7,050Including "Khadi Bhandars" http://dkvib.delhigovt.nic.in/aboutus.html are owned by the commission. These are spread all over India. The products are also sold internationally through exhibitions arranged by the commission.

References

External links

Khadi and Village Industries Commission, Official website

Official Website Of Ministry of Micro, Small and Medium Enterprises
{{authority control Government agencies established in 1956 Small-scale industry in India Ministry of Micro, Small and Medium Enterprises Rural development organisations in India 1956 establishments in Bombay State Government agencies of India