Khadi and Village Industries Commission (KVIC)

Khadi and Village Industries Commission is a non-constitutional body which is incorporated under the Parliament Act, passed by the Government of India. KVIC aims to plan, promote, facilitate, organize, and assist in the establishment and development of Khadi and Village industries in the rural areas. In this article, we focus on the different schemes organized under the Khadi and Village Industries Commission (KVIC) in detail.

Objectives of the KVIC

The objectives of the KVIC are explained below:

Primary Objective - To build up an active rural community
Social Objective - To provide employment in rural areas
Economic Objective - To produce a saleable product
Wider Objective - To create self-reliance among the economically weaker section

Functions of KVIC

The functions of the KVIC are as follows:

To build a strategic reserve of raw materials and implements for supply to producers.
To create common service facilities for processing of raw materials as semi-finished goods and provisions of facilities for marketing of KVI products.
To enhance the sale and marketing of Khadi and other products of village industries or handicrafts.
To be responsible for encouraging and promoting research in the production techniques and equipment employed in the Khadi and Village Industries sector.
To provide financial assistance to institutions and individuals for developing and guiding Khadi and Village industries through the supply of designs, prototype and other technical information.
To assure genuineness of the products and to set standards for the quality of products from the Khadi and Village Industries.

KVIC Schemes

The following are the schemes covered under the Khadi and Village Industries Commission (KVIC).

 Prime Minister’s Employment Generation Programme (PMEGP)
 Market Promotion Development Assistance (MPDA)
Interest Subsidy Eligibility Certificate (ISEC)
Workshed Scheme for Khadi Artisans
Strengthening the infrastructure of existing weak Khadi institutions and assistance for marketing infrastructure
Khadi Reform and Development Programme (KRDP)
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Honey Mission

 Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP is a credit linked subsidy scheme, for establishing new micro, medium and small enterprises and to create employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi and Village Industries Board and District Industries Centre. Under the PMEGP scheme, the Khadi and Village Industries Commission (KVIC) act as the nodal agency at nationwide for implementation of the scheme. Also read: Prime Minister’s Employment Generation Programme (PMEGP)

Market Promotion Development Assistance (MPDA)

Market Promotion Development Assistance scheme was proposed with an intention to ensure increased earnings for artisans. Under MPDA scheme, 25% of assistance is provided among the artisans, spinners, and weavers as an additional incentive through their bank or post office account.

Interest Subsidy Eligibility Certificate (ISEC)

Through KVIC scheme, credit at concessional rate of interest can be availed through Banks as per the Interest Subsidy Eligibility Certificate issued by the KVIC.

Workshed Scheme for Khadi Artisans

The KVIC scheme grants financial assistance for construction of workshed to khadi artisans belonging to BPL category. The Khadi institution is responsible for the utilization of the financial assistance given under the scheme for the benefit of the artisans which empowers a sustainable path for income generation, growth and better work environment. 

Strengthening the infrastructure of existing weak Khadi institutions and assistance for marketing infrastructure

Under this scheme, financial assistance is rendered to existing weak Khadi institutions for the strengthening of their infrastructure and of selected khadi sales outlets.

Khadi Reform and Development Programme (KRDP)

KRDP aims to provide earning opportunity to rural artisans in their household at minimal investment. The KRDP also helps to support the development of traditional village industries such as handmade paper, honey, herbal health and cosmetics, leather and agro-food processing industry.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

SFURTI scheme is to provide need-based assistance for the replacement of production tools, product development, setting up of common facility centres (CFC), quality improvement, improved marketing, training and capacity building etc. Learn more about SFURTI

Honey Mission

KVIC launched Honey (Bee) Mission for supporting Beekeeping and creating employment opportunities in the beekeeping states of the country. One of the intentions of the SFURTI Scheme is to promote scientific beekeeping practice for improving the livelihood of rural youth and farmers. KVIC also executes other activities for the growth of various village industries like pottery, chemical based, polymer, handmade paper and fibre-based, agro-based, bee-keeping and other forest-based activities.

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Frequently Asked Questions

Common questions about Khadi and Village Industries Commission.

The Khadi and Village Industries Commission (KVIC) is a non-constitutional body established by the Government of India under an Act of Parliament. Its primary objective is to plan, promote, facilitate, organize, and assist in the establishment and development of Khadi and Village industries in rural areas.

The main objectives of the KVIC are to build an active rural community (Primary Objective), provide employment in rural areas (Social Objective), produce saleable products (Economic Objective), and create self-reliance among the economically weaker sections (Wider Objective).

Some of the key functions of the KVIC are to maintain a strategic reserve of raw materials and implements for Khadi and Village Industries, create common service facilities for processing and marketing, enhance the sale and marketing of Khadi products, promote research in production techniques, provide financial assistance and technical guidance, and ensure the genuineness and quality standards of Khadi and Village Industries products.

The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme implemented by the KVIC to establish new micro, small, and medium enterprises and create employment opportunities in rural and urban areas. The KVIC acts as the nodal agency for the nationwide implementation of this scheme.

The Market Promotion Development Assistance (MPDA) scheme provides an additional 25% incentive to artisans, spinners, and weavers as assistance for promoting their products and increasing their earnings. The incentive is directly credited to their bank or post office accounts.

The Interest Subsidy Eligibility Certificate (ISEC) scheme allows Khadi institutions to avail credit at concessional rates of interest from banks. The KVIC issues the ISEC certificate to eligible institutions.

The Workshed Scheme for Khadi Artisans provides financial assistance to Khadi artisans belonging to the Below Poverty Line (BPL) category for constructing worksheds. This scheme aims to empower sustainable income generation and provide a better work environment for the artisans.

The Khadi Reform and Development Programme (KRDP) aims to provide earning opportunities to rural artisans in their households with minimal investment. It also supports the development of traditional village industries such as handmade paper, honey, herbal health and cosmetics, leather, and agro-food processing.

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) provides need-based assistance for replacing production tools, product development, setting up common facility centers, quality improvement, improved marketing, training, and capacity building for traditional industries.

The Honey Mission launched by the KVIC aims to support beekeeping and create employment opportunities in the beekeeping states of the country. It promotes scientific beekeeping practices to improve the livelihood of rural youth and farmers, which is also one of the objectives of the SFURTI scheme.