Khadi and Village Industries Commission

The Khadi and Village Industries Commission is a non-constitutional authority set up by The Government of India under the Parliamentary Act. Its mission is to plan, encourage, support, organize, and help implement Khadi and Village industries in remote rural areas. Established under the government’s second five-year plan, there are numerous objectives and important features of the Khadi and Village Industries Commission. It comes under the Ministry of Micro, Small and also Medium Enterprises. Under the Khadi and Village Industries Act, 1956 it was established. Amendment progress took place twice, in 1965 and 2006. Khadi and Village Industries Commission is one of the most important constitutional, statutory, and quasi-judicial bodies.

Khadi and Village Industries Commission

Important Facts on KVIC
Full Form	Khadi Village and Industries Commission
Establishment Date	1957
Commission Type	A Statutory Body
Concerned Ministry	Ministry of MSMEs
Subsumed the Work of	All India Khadi and Village Industries Board
Website	www.kvic.gov.in/

Khadi and Village Industries

The Khadi and Village Industries Commission is an Indian Constitutional statutory authority, which works under the responsibility of the Department of Micro, Small & Medium Enterprises. It was founded under the Khadi and Village Industries Act of 1956. This act was revised twice — once in 1965 and again in 2006. Both Khadi & Village Industries have one similar theme: they are labor-intensive.

The benefit of Khadi and Village Industries would be that it needs almost no capital to start up, making them a cost-effective alternative for the rural poor. This is particularly relevant in the context of India, given the country’s severe income, geographical, and sparsely populated disparities.

Objectives of Khadi and Village Industries Commission

The main objectives of KVIC are as follows:

1. For boosting employment in the country.
2. For promotion and sale of Khadi articles.
3. For catering to the self-reliance doctrine for the empowerment of underprivileged and rural sections of society.

Functions of KVIC

The main functions of KVIC are as follows-

• Collaborate with several rural organizations worldwide on several programs involving khadi and village industries within remote regions.
• It helps to promote KVI goods via craftsmen or other channels.
• It develops, organizes, promotes, and executes Khadi and Village Industries’ development programs.
• It contributes to the development of shared facilities and services that aid in the extraction of raw materials.
• It establishes relationships with a variety of advertising authorities to promote and sell KVI goods.
• It keeps a stockpile of raw commodities which can be marketed farther down the chain.
• It establishes rules for adhering to product specifications to prevent the creation of counterfeit goods.

Schemes and Programs under the Commission

The schemes and programs under the commission are as follows-

1. Prime Minister’s Employment Generation Program

• In the manufacturing industry, the highest construction price is 25 lakh, whereas, in the business sector, it is 10 lakhs.
• Recipient Subsidy Rates in the PMEGP Recipient Subsidy Rates in the PMEGP 
• In the broad class, 15% for urban & 25% for rural, and in the special category, 25% for urban or 35% for rural.
• Banks will supply the remaining portion of the overall project cost in the form of a credit facility and cash reserves.

2. Interest Subsidy Eligibility Certification Scheme

• The Interest Subsidy Eligibility Certificate Scheme is the Khadi program’s primary funding source. It was established in May 1977 to raise funds from banks to bridge the gap between the actual financial requirement and the availability of funds from budgetary sources.

3. Rebate Program

• The government discounts Khadi and Khadi sales revenue to keep the cost of Khadi and Khadi products compared with other fabrics. Customers receive a regular reimbursement throughout the year and a special refund for 108 days out of the year.

Progress of KVIC

Some of the important highlights for the progress of KVIC are as follows-

1. Mission Solar Charkha has helped in empowering women by bringing self-esteem as well as self-reliance among them.
2. There has been a significant transformation in both Khadi production and Khadi sales.
3. Khadi Haat has been set up for the first time in Delhi in 2018.
4. Khadi institutions there has been large-scale digitalization between 2015-2018.
5. There has been an artistic-centric vision for transformation in Khadi and Village Industries.

Mission of the Organs of KVIC

There are five organs of KVIC and their mission is as follows-

1. Organization- Take responsibility for developing KVI and for reducing the burden of government.
2. Community- For enabling the rural community by promotion of security for life.
3. Village Industry- For increasing productivity.
4. Market- For aiding the sales as well as marketing.
5. Heritage- For the protection of socio-cultural value.

Conclusion

The Khadi and Village Industries Commission proves to be very important and beneficial since the organizations’ products are generally offered directly by them or through the government. There are 15,431 sales outlets in all, with the authority owning 7,050 of them. They can be found all over India. In addition to this, the commission also organizes worldwide shows to sell the products.

Frequently Asked Questions

Q 1. What is the Khadi and Village Industries Commission?

Answer-

The Khadi and Village Industries Commission is a type of statutory body in the Constitution of India. The Commission comes under the Ministry of Micro, Small and Medium Enterprises.

Q 2. Why was Khadi and Village Industries Commission established?

Answer-

The Khadi and Village Industries Commission was established in 1956 by passing an act. It helps in the promotion of industrial development in rural settings.

Q 3. Who is the CEO of Khadi and Village Industries Commission?

Answer-

Vinit Kumar is the CEO of Khadi and Village Industries Commission.