KHADI AND VILLAGE INDUSTRIES COMMISSION

DIRECTORATE OF KHADI COORDINATION

3, IRLA ROAD, VILE PARALE (WEST), MUMBAI-56

Telefax +91-22-2671 5860 e-mail: Web:

No. DKC/DL/POLICY/2007-08Date: 8th March 2008

CIRCULAR

Sub:Certification and direct listing of new institutions organized and managed by people belonging to all social categories in the rural areas for implementation of Khadi & Polyvastra Programme - Regarding.

Khadi and Polyvastra Programme of KVIC is implemented through institutional setup. These institutions work as Special Purpose Vehicle (SPV) in organizing khadi and polyvastra programmes at the grass-root level. In common parlance, these institutions are Non-Governmental Organizations (NGOs) and primarily registered under the relevant State Acts viz. Societies Registration Act, Co-operative Societies Act or Charitable Societies Act.

2.KVIC provides all possible support through its various schemes so that these institutions can create earning opportunities for rural artisans through the process of hand spinning and hand weaving. In order to become eligible to receive assistances extended by KVIC an institution needs to obtain a Khadi Certificate from the Central Certification Committee and enlistment with the Khadi and Village Industries Commission.

3.KVIC has been assigned a target of doubling production as well as sale of khadi during XIth plan period. Gracing the occasion of KVIC's Golden Jubilee celebration at Vigyan Bhavan, New Delhi on 19th November 2007, Hon'ble Finance Minister exhorted to strive for trebling production of khadi. Expansion of Khadi and Polyvastra Programme necessitates inclusion of new NGOs in the fold of KVIC through the mechanisms of certification and enlistment.

4.The Commission had deliberated the issue in its 554thmeeting held on 28th February 2008 and decided to broaden the base of Khadi and Polyvastra activities by opening up registration for implementation of Khadi and Polyvastra programmes to institutions organized and managed by people belonging to all social categories in rural areas in supersession of all circulars issued earlier on the subject. This will lead to enhanced production, sale and opening up the Khadi sector to young people residing in rural areas.

5. At present KVIC arranges finance required for implementation of khadi and Polyvastra Programme in the North Eastern Region directly through its own budgetary resources. For other region, capital finance is arranged through banking channel under the Interest Subsidy Eligibility Certificate Scheme where institutions have to bear only 4% interest and the rest is borne by KVIC. A scheme proposing liberal finance for implementation of Khadi and Polyvastra Programme particularly for new institutions, from the budgetary resources of KVIC is under active consideration of the Government of India. It may, therefore, be construed that due care is being taken, so as to provide adequate finance to implementing agencies promptly.

6.All State / Divisional Directors of KVIC and Chief Executive Officers of State KVI Boards are advised to include the dissemination of the contents of this Circular through all possible modes i.e. in the KVIC / State KVIB web-sites, awarenesscamps, workshops, EDPs and also through media publicity campaigns that are held from time to time.

(J.S. MISHRA)

CHIEF EXECUTIVE OFFICER

To,

1. / All State / Divisional Directors
2. / All Chief Executive Officers / Secretaries /
Managing Directors, State / UT KVI Boards

Copy for favour of information :

  1. All Members of the Commission.
  2. Chairman, Central Certification Committee
  3. All Members of Central Certification Committee
  4. Chairmen of the Zonal Certification Committees (North Zone, South Zone, Central Zone, East Zone, North-East Zone and West Zone)
  5. Jt. Chief Executive Officer
  6. Chief Vigilance Officer
  7. Zonal Dy. Chief Executive Officers (North Zone, South Zone, Central Zone, East Zone, North-East Zone and West Zone)
  8. All Members of the Zonal Certification Committees
  9. All Programme / Industry Directors
  10. Secretary to Hon’ble Chairperson
  11. O.S.D. to Chief Executive Officer.
  12. Accounts Officer to Financial Advisor.
  13. Director (Information Technology) for placing the circular on web site.
  14. Director (Publicity) with a request to publish the same in the ensuing issue of ‘Jagriti’.
  15. Circular file