Established in 1956, Khadi Village Industrial Commission (KVIC) is a statutory body created by an act of parliament. It is credited with planning, promotion, organization, & implementation of the program for the development of khadi & other village industries in the rural areas along with the other agencies engaged in rural development.

The functions of KVIC are:

  1. Building up a reserve of raw materials to supply to producers
  2. Creation of common service facilities for processing of raw materials
  3. Provision of marketing of KVIC products

It is entrusted with the task of providing financial assistance to people engaged in the development & operation of Khadi & Village industries & guide them with design and prototypes supplies.

With the help of KVIC, much-unemployed youth have established cottage industries and their offices are located near the district collector’s office.

In this blog, we will let you know about the Khadi Village Industrial Commission in detail.

What is Khadi?

Khadi is a crude material either cotton, silk or fleece which is hand-spun and hand-woven fabric.

To understand Khadi, we have to go a little back to our history, Khadi was spun by wheels (Charkha) during the Vedic period which was being revived and popularized by the Father of our Nation, Mahatma Gandhi during the Swadeshi movement to avoid foreign goods and use only goods that are made in India to take India towards development.

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Khadi & Village Industries

In the wake of industrialization and mechanism, Khadi and Village Ventures as a financially suitable alternative for the rural poor who can set up these ventures practically with no or low capital investments.

The Objective of the KVIC

There are three primary objectives of this Commission:

Social Objective Economic Objective

Broader Objective

Providing employment in the provincial regions Providing saleable articles that has market Creating confidence among the individuals and building a solid network

The commission is trying to achieve these objectives through different plans and projects.

Implementation of the Projects and Plans under KVIC

  • The implementation of the plan begins at the Ministry of Micro, Small and Medium enterprises as they are the authoritative powers on the projects.
  • The ministry gets assets from the Central Government of India and makes it available to the commission for the execution of the projects and plans.
  • The Commission utilizes the assets through Khadi & Village industries Boards workplace in 29 states by subsidizing the Khadi and Village Organizations and co-agents

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Plans and Programs of the Commission

The programs of the Commissions are:

  • The Prime Minister’s Employment Generation Program (PMEGP) is the result of the merger of two plans – Prime Minister’s Rojgar Yojana (PMRY) and The Rural Employment Generation Program (REGP).
  • The Interest Subsidy Eligibility Certificate (ISEC) Scheme started in May 1977 that activated assets from banking foundations to accommodate the real store necessity and its accessibility from budgetary sources. Credits are given con at the by the banks to the individuals to meet their working capital expenses.
  • MDA is promotion assistance for the development of Khadi. MDA is paid at 20% on Production. Out of the MDA paid to the institution, 25% goes to Artisans as a direct incentive, 30% to an institution for production and 45% for marketing.
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Discount Schemes of KVIC

The discounts are accessible by the Government on the deals of Khadi and Khadi items. Ordinary refund of 10%, and extra unique discount of 10% for 108 days in a year.

The discount is permitted distinctly on the deals made by the organizations run by the Commission Boards and at the business places run by the enrolled establishments which are occupied with the creation of Khadi and Polyvastra.

As of late, the fund service has asked the micro, little and medium ventures service to redraw its refund plot for Khadi and town businesses.

How To Get Loan from KVIC?

To avail a loan from Khadi and Village Industries Commission (KVIC) you must approach the commission directly. They give loans at subsidized rates to aspiring candidates.
The employees are well equipped and adept to handle your queries.

Details about the loan are given on their website. Here is a link to help you in your search:

Sale of Khadi

In recent years, sales of Khadi have increased as the fashion houses have experimented successfully with the materials and created stylish clothes.

KVIC Chairman Shri Vinai Kumar Saxena attributed the massive sale figures to the frequent appeals of the Prime Minister Shri Narendra Modi to buy Khadi and also its growing popularity among masses particularly the youth.

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“Despite the Corona pandemic, a large number of people still came out to buy Khadi which is a result of the repeated appeals of the Hon’ble PM. Khadi has become a household name and the number of Khadi lovers is constantly growing. And despite a manifold increase in production, KVIC has ensured the highest quality of its product range that has kept our consumer base intact,” Saxena said.

He added although the sale figures this year fell just short of the last year’s mark because of the pandemic, the over Rs 1 crore single-day sale figure was still quite satisfactory.

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