Khadi and Village Industries Commission

"The livery of freedom" – Mahatma Gandhi{{cite web|url=http://www.kirjasto.sci.fi/gandhi.htm |title=Gandhi |website=Books and Writers (kirjasto.sci.fi) |first=Petri |last=Liukkonen |publisher=Kuusankoski Public Library |location=Finland |archiveurl=https://web.archive.org/web/20090706120628/http://www.kirjasto.sci.fi/gandhi.htm |archivedate= 6 July 2009 |url-status=dead }}

Khadi, (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 of Mahatma Gandhi.

Khadi is sourced from different parts of India, depending upon its raw materials - While the silk variety is sourced from West Bengal, Bihar, Odisha and North Eastern states, the cotton variety comes from Andhra Pradesh, Uttar Pradesh, Bihar and West Bengal. Khadi poly is spun in Gujarat and Rajasthan while Haryana, Himachal Pradesh and Jammu and Kashmir Karnataka are known for the woolen variety.

There are a wide range of Khadi personal care products manufactured in Uttarakhand [https://www.khadibrand.in/ Khadi Products - Handmade and Natural]

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.{{Cite web|last=Bureau|first=Indiaretailing|date=2021-05-21|title=Tribunal bars unauthorised use of Khadi brand name|url=https://www.indiaretailing.com/2021/05/21/fashion/tribunal-bars-unauthorised-use-of-khadi-brand-name/|access-date=2021-05-23|website=Indiaretailing.com|language=en-US|archive-date=23 May 2021|archive-url=https://web.archive.org/web/20210523044550/https://www.indiaretailing.com/2021/05/21/fashion/tribunal-bars-unauthorised-use-of-khadi-brand-name/|url-status=dead}}{{Cite news|agency=PTI|date=2021-05-20|title='Khadi', 'Khadi India' not generic names, rules tribunal|language=en-IN|work=The Hindu|url=https://www.thehindu.com/news/national/khadi-khadi-india-not-generic-names-rules-tribunal/article34603078.ece|access-date=2021-05-23|issn=0971-751X|archive-date=23 May 2021|archive-url=https://web.archive.org/web/20210523044549/https://www.thehindu.com/news/national/khadi-khadi-india-not-generic-names-rules-tribunal/article34603078.ece|url-status=live}}{{Cite web|last=MPost|date=2021-05-20|title=KVIC: Court bars individuals/cos from using 'Khadi' brand name without authorisation|url=http://www.millenniumpost.in/business/kvic-court-bars-individualscos-from-using-khadi-brand-name-without-authorisation-440669|access-date=2021-05-23|website=www.millenniumpost.in|language=en|archive-date=23 May 2021|archive-url=https://web.archive.org/web/20210523044558/http://www.millenniumpost.in/business/kvic-court-bars-individualscos-from-using-khadi-brand-name-without-authorisation-440669|url-status=live}}

Any Industry that is located within a rural area, where the Fixed Capital Investment per Artisan (weaver) does not exceed One hundred thousand Rupees.{{Cite web |url=http://www.ari.nic.in/RevisedKVICACT2006.pdf |title=Chapter 1, Page 1 |access-date=24 July 2009 |archive-url=https://web.archive.org/web/20090410031754/http://ari.nic.in/RevisedKVICACT2006.pdf |archive-date=10 April 2009 |url-status=dead }}

The Fixed Capital Investment can be changed by the Government of India whenever it so requires.

The commission has three main objectives[http://www.kvic.org.in/V4/OVERVIEW.ASP Overview] {{Webarchive|url=https://web.archive.org/web/20050305215816/http://www.kvic.org.in/V4/OVERVIEW.ASP |date=5 March 2005 }} KVIC website 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.

The process of Implementation of schemes and programs starts at the Ministry of Micro, Small and Medium Enterprises 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.[http://www.msme.gov.in/Chapter%205.pdf - Budgetary Support to KVIC, Page 6] {{Webarchive|url=https://web.archive.org/web/20110721161412/http://www.msme.gov.in/Chapter%205.pdf |date=21 July 2011 }} Ministry of Micro, Small and Medium Enterprises.

The Khadi and Village Industries Commission then uses these funds to implement its programs either directly - Through its 29[http://www.msme.gov.in/Chapter%205.pdf Page - 65] {{Webarchive|url=https://web.archive.org/web/20110721161412/http://www.msme.gov.in/Chapter%205.pdf |date=21 July 2011 }} Ministry of Micro, Small and Medium Enterprises state offices, by directly funding Khadi and Village institutions and co-operatives, or indirectly through 33[http://www.msme.gov.in/Chapter%205.pdf Page - 66] {{Webarchive|url=https://web.archive.org/web/20110721161412/http://www.msme.gov.in/Chapter%205.pdf |date=21 July 2011 }} Ministry of Micro, Small and Medium Enterprises 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 societies[http://dkvib.delhigovt.nic.in/aboutus.html About us - Delhi Khadhi and Village industries Board] {{Webarchive|url=https://web.archive.org/web/20090725063216/http://dkvib.delhigovt.nic.in/aboutus.html |date=25 July 2009 }} Government of Delhi. and about ~95 lakh people.[http://www.msme.gov.in/Chapter%205.pdf - Page 67] {{Webarchive|url=https://web.archive.org/web/20110721161412/http://www.msme.gov.in/Chapter%205.pdf |date=21 July 2011 }} Ministry of Micro, Small and Medium Enterprises.

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.{{Cite web|url=https://msme.gov.in/11-prime-ministers-employment-generation-programme-pmegp|title=1. Prime Minister's Employment Generation Programme (PMEGP) {{!}} Ministry of Micro, Small & Medium Enterprises|website=msme.gov.in|access-date=2019-04-03|archive-date=30 January 2019|archive-url=https://web.archive.org/web/20190130200950/https://msme.gov.in/11-prime-ministers-employment-generation-programme-pmegp|url-status=live}}

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 https://www.geekhindi.com/pmegp-loan-detailed-guide-in-hindi/ {{Webarchive|url=https://web.archive.org/web/20180211131523/https://www.geekhindi.com/pmegp-loan-detailed-guide-in-hindi/ |date=11 February 2018 }} pmegp loan 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.{{Cite web |url=http://www.msme.gov.in/Chapter%205.pdf |title=- Page 70 |access-date=24 July 2009 |archive-url=https://web.archive.org/web/20110721161412/http://www.msme.gov.in/Chapter%205.pdf |archive-date=21 July 2011 |url-status=dead }} 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.

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.All figures from [http://www.msme.gov.in/Chapter%205.pdf - Page 71] {{Webarchive|url=https://web.archive.org/web/20110721161412/http://www.msme.gov.in/Chapter%205.pdf |date=21 July 2011 }}

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.[http://www.indianexpress.com/news/msme-ministry-asked-to-redraw-rebate-scheme/471467/ MSME Ministry asked to redraw rebate scheme] {{Webarchive|url=https://web.archive.org/web/20230803105228/https://indianexpress.com/article/news-archive/web/msme-ministry-asked-to-redraw-rebate-scheme-for-khadi-industry/ |date=3 August 2023 }} Indian Express.

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.

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

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

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 {{Webarchive|url=https://web.archive.org/web/20090725063216/http://dkvib.delhigovt.nic.in/aboutus.html |date=25 July 2009 }} are owned by the commission. These are spread all over India.

The products are also sold internationally through exhibitions arranged by the commission.

• National Charkha Museum
• Ministry of Micro, Small and Medium Enterprises
• Mahatma Gandhi Institute for Rural Industrialization

{{Reflist}}

• [http://www.kvic.org.in/ Khadi and Village Industries Commission, Official website]
• [https://web.archive.org/web/20110316061912/http://msme.gov.in/ Official Website Of Ministry of Micro, Small and Medium Enterprises]

{{authority control}}

Category:Government agencies established in 1956

Category:Small-scale industry in India

Category:Ministry of Micro, Small and Medium Enterprises

Category:Rural development organisations in India

Category:1956 establishments in Bombay State

Category:Government agencies of India