8 Feb 2014

Khadi and Village Industries Commission Generating Employmment

Khadi and Village Industries Commission(KVIC)
Khadi and Village Industries Commission(KVIC) is a propagation of the ideas imbibed by Mahatma Gandhi. The growth of the industry has been symbolized in the simple charkha or the spinning wheel. Under the inspiration of Mahatma Gandhi, the national struggle for India's political independence witnessed a concomitant struggle for the preservation, protection and encouragement of rural industries. The unequal competition from cheap mill-made products threatened employment and livelihood of the rural artisans and craftsmen.

Gandhiji put a premium on simplicity in life style and consumption. The Gandhian strategy for Indian development was linked to enhanced utilization of the vast mass of surplus manpower and its active involvement in production processes. In the Gandhian idiom, cottage and village industries represent a support structure to a life style. 

The view, that village industries and crafts are an important part of rural life and should be vigorously protected to ensure sustenance to a self- reliant village, is essentially an outcome of the traditionalist philosophy, articulated so forcefully by Gandhi. It was infact, a reactive approach --- a defence mechanism against the onslaught of the British industry.

The real India resides in Rural India. Large portion of the rural population of India acting as one of the major sources of its economy is supported by Cottage Industries which is responsible for having hugely preserved the cultural heritage of India. 

 The Khadi and Village Industries Commission is implementing major employment generation schemes in the country. The sector has been able to provide employment opportunities to 16.07 lakh number of persons during the XI Five Year Plan Period.

The Prime Minister’s Employment Generation Programme (PMEGP) scheme has been a major tool to generate employment opportunities through setting up of micro enterprises in the country.  It is a credit-linked subsidy programme where the General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas and for beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc., the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector.

The scheme has received very encouraging response from unemployed masses as well as the major implementing partner viz. banks in the country especially in the North Eastern States as well as state of Jammu & Kashmir. During 2011-12 against the stipulated Margin money target of  Rs. 80.00 Crore set for North Eastern Region the actual disbursement upto 31st March 2012 reached a figure of Rs. 101.00 Crore i.e. 126% of the target.

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) for cluster development has also played an important role in regenerating the traditional industries and increasing the wages of artisans. Under the scheme 2 khadi, 11 village industries and 02 coir clusters have been made functional in the North Eastern Region by providing them with improved equipment, common facilities centres, business development services, training, capacity building and design and marketing support.

New Initiatives of KVIC
KVIC has been accorded Deemed “Export Promotion Council” status by the Ministry of Commerce for promoting exports of KVI products. This will become a major step in creating export opportunities for KVI sector.
To avail of professional expertise in the area of Design and Fashion Technology, KVIC has developed linkage with NIFT, Mumbai for convergence and an MoU has beensigned. NIFT will also assist KVIC in setting up Design Cell which would be used by Khadi Institutions to produce marketable products.
With a view to develop exports, KVIC is working out modalities for an MoU with Indian Institute of Foreign Trade which will bring  professional expertise in harnessing capacity building to KVI Institutions and units in the field of exports and also to create export market for Khadi and Village Industries sector.
A number of Khadi Plaza are being set up at Bangalore,  Guwahati, Nagaland by KVIC to support marketing of Khadi and Village Industries products produced in this sector. 
Special package for providing grant assistance for transportation travel, lodging and boarding for artisans, spinners and weavers and workers of Khadi and Village Industries institutions and units of North Eastern Region, Jammu & Kashmir, Andaman Nicobar Board for participating in exhibition outside the Region/State has been introduced. This will motivate institutions and units from these areas to actively participate in major exhibitions to market their products and enhance their viability. 

In Offing
            During 2012-13 the thrust will be in the areas of Brand Promotion, Product Development, Streamlining of Departmental Sales Outlets, Government Supplies and Exports. This will be achieved by way of convergence with professional agencies like IIFT, CII, NIFT, etc. as well as activities like Domestic and International exhibitions, Buyer-Seller Meet, Workshops, Seminars, Training Programmes, etc.
  • To develop Export Market through participation in International Exhibition and Buyer Seller Meets. To encourage KVI Institutions and PMEGP units to boost the export of KVI products.
  • To promote export consortium of Export Oriented KVI Institutions and REGP/PMEGP units which can play a major role in developing export and support institutions/units to become export worthy.
  • To develop linkage with IIFT, ITPO, FIEO, CII and NIFT to get expert input for export promotion product development and developed strategy and action plan for exports with deliverables and targets.
  • Renovation and modernization of departmental and institutional sales outlets.
  • Developing captive market available in form of Government supplies to Defence Railways and other agencies.
  • Streamlining domestic exhibitions and make them more cost effective with uniform designs layout and proper monitoring system with checks and balances including centralized billing and cash counter and provision for feedback from customers as well as create data base of producing units with special capacity etc.
  • Streamlining the DSOs and work out turnaround strategy for loss making units and also involve effective monitoring system online for damaged stock and inventory control, purchase, payment etc.
  • Impart training in the areas of inventory control salesmanship, exports for sales staff and officers of DSOs and institutional.
  • Market promotion is coming in a big way through the intervention of Asian Development Bank, wherein private sector partners  will be selected to  ‘Partner with KVIC’ or initiate massive marketing effort throughout  India.


Rs. 19,871.86
Rs. 25,792.99

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