previous arrow
next arrow


Village Industries Programme is equally important in the State In implementation of Village Industries Programme in the State, the West Bengal Khadi & Village Industries Board plays an important role. The West Bengal Khadi & Village Industries Board has so far financed (95296) individual units under Village Industries Programme in the State. For the development of village industries programme in the state an amount of Rs.79.94 crores have been financed both under the pattern approach and project approach under CBC Scheme. West Bengal is one of the major states in connection with implementation of REGP in the country. Although the scheme started operating through public sector Banks since 1995-1996, the participation of the State in the implementation of the scheme took place only from the middle of 1998. And it took sometime for accelerating its performance in the implementing REGP, But with the passage of time the State has achieved notable progress by the end of the year 2007-2008. And West Bengal Khadi & V.I. Board has been awarded National Award as the best performing state in the country in the year 2007-2008.

Earlier Board implemented V.I. Programmes in three phases.
(a). Pre-CBC period upto 1999-95 (Potter Based Programme out of V.I. fund received from KVIC @ 4% interest p.a .)
(b). CBC Period from 1995-96 to 199S-99 (Pattern Based out of fund received from Bank through KVIC and M.M. Subsidy from KVIC. interest rate @ prime lending rate).
(c). REGP from 1999-2000 to 2007-2008 (Project Based Programme, Directing funding by Bank , M.M. Subsidy from K.V1C, Interest rate as per RBI norms.


(1) Cottage Pottery industry
(2) Lime Stone, Lime Shell and other lime products industry
(3) Stone cutting, crushing, carving and engraving for Temples and Buildings
(4) Utility articles made out of stone
(5) Slate and Slate pencil making
(6) Manufacture of plaster of paris
(7) Utensil washing
(11) Manufacture of Bangles
(12) Manufacture of Paints,Pigment,Varnishes and Distemper
(13) Manufacture of Glass Toys
(14) Giass Decoration-cutting, designing and polishing
(15) Gem cutting


(16) Handmade Paper
(17) Manufacture of Katha
(18) Manufacture of Gums and Resins
(19) Manufacture of Shellac
(20) Cottage Match Industry, Manufacture of fire works and Agarbattis
(21) Bamboo and Cane work
(22) Manufacture of paper cups, plates, bags, and other paper containers
(23) Manufacture of of exercise book binding, envelope making, register making, including all other stationery items made out of paper
(24) Khus tattis and broom making.
(25) Collection, processing and packing of forest products
(26) Photo framing
(27) Manufacture of Jute products (under fibre industry)


(28) Processing, packing and marketing of cereals, pulses, spices, condiments, masala etc.
(29) Noodles making
(30) Power atia chakki
(31) Daiiya making
(32) Indian sweets making
(36) Raswanti-sugarcane juice catering unit
(37) Bee-keeping
(38) Fruits and vegetable processing,L preservation and canning including pickles
(39) Ghani oil industry
(40) Menthol oil
(41) Fibre other than coir
(42) Collection of forest plants and fruits for medicinal. purpose
(43) Processing of maize and ragi
(44) Pith work, manufacture of pith mats and gar-lands etc.
(45) Cashew, processing
(46)"Leaf cup making
(47) Milk products making unit
(48) Cattle feed, poultry feed making.


(49) Flaying, curing and tanning ot hides and skins and ancillary industries connected with the.saim, and cottage leather industry
(50) Cottage soap industry
(51) manufacture of Rubber goods (dipped laiex products)
(52) Products out of Rexin, PVC etc.
(53) Horn antfc Bone Including Ivory products
(54) Candle, Camphor and sealing wax making
(55) Manufacture of packing items of plastics
(56) Manufacture of Bindi
(57) Manufacture-of menandi
(58) Manufacture of Essential oils
(59) Manufacture of Shampoos
(60) Manufacture of Hair oil
(61) Detergents and washing powder making (non-toxic).


(62) Carpentry
(63) Blacksmithy
(64) Manufacture of Household aluminium utensils
(65) Manufacture and use of manure and methane (Gobar) Gasfrom cow dung and other waste products (Such as flesh of dead animals, night soils etc.)
(66) Vermiculture and waste, disposal
(67) Manufacture of paper pins, clips, safety pin, stove pins etc.
(68) Manufacture of decorative bulbs, bottles, glass etc.
(69) Umbrella assembling
(70) Solan and wind energy implements
(71) Manufacture of Handmade utensils out of brass
(72) Manufacture of handmade utensils out of copper
(73) Manufacture of handmade utensils out of Bell metal
(74) Other articles made out of Brass, Copper and Bell metal
(75) Production of Radios
(76) Production of cassette player whether or not fitted with Radio
(77) Production of cassette recorder whether or not fitted with Radio
(78) Production of voltage stabilizer
(79) Manufacture ot electronic clocks and alarm time pieces
(80) Carved woed and artistic furniture making
(81) Tin smity
(82) Motor winding
(83) Wire net making
(84) Iron grill making
(85) manufacture of Rurft transport vehicles such as hand carts, bullock carts, small boats, assembly of bicycles, cycle rickshaw, motorised carts etc.
(86) manufacture of musical instruments


(87) Polyvastra which means any cloth woven on handloorn in India from yarn handspun in India from a mixture o| man made fibre with either cotton, silk or wool or with any two or all of them or from a mixture of man made fibre yarn handspun in India with either cotton, silk or woollen yarn handspun in India or with any two or ail of such yarn.
(88) Manufacfure of Lock Vastra cloth
(89) Hosiery
(90) Tailoring and Preparation of Readymade Garments
(91) Batick works
(92) Toys and Doll making
(93) Thread Balls and Woollen Balling Lacchi making
(94) Embroidery
(95) Manufacture of surgical bandages
(96) Stove wicks
(97) Carpet weaving
(98) Traditional dresses
(99) Shawl weaving (97 to 99 only of North Eastern Region)
(100) Pashimina wool.


(101) Laundry
(102) Barber
(103) Plumbing
(104) Servicing of Electric wiring and electronics domestic appliances and equipments
(105) Repairs-of diesel engines, pumpsets etc.
(106) Tyre vulcanising unit
(107) Agriculture servicing for sprayers, insecticide, pumpsets etc.
(108) Hiring of sound-system like loud speaker, amplifier, mike etc.
(109) Battery charging
(110) Art Board painting
(111) Cycle repair shops
(112) Masonry
(113) Band troupe
(114) Motorised' local boat (Fibre glass) for Goa only
(115) Motor cycle to Ply as taxi (for Goa only)
(116) Musical instruments (for Goa only)
(117) Motor cycle Taxi
(118) Dhabas (Not Servicing Liquor)
(119) Tea stall
(120) Iodised Salt.


The following list of activities will not be permitted under PMEGP for setting up of micro enterprises / projects / units.

(a) Any Industry/business connected with Meat (slaughtered) i.e. processing, canning and/or serving items made of it as food, production/manufacturing or sale of intoxicant items like Beedi/Pan Cigar/Cigarette etc. any Hotel or Dhaba or sales outlet serving liquor preparation/producing tobacco as raw materials, tapping of toddy for sale.
(b) Any Industry/business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc sericulture (cocoon rearing), Horticulture, Floriculture. Value addition under these will be allowed under PMEGP.
(c) Any industry/business connected with Animal Husbandry like Pisciculture, Piggery, Poultry etc,
(d) Manufacturing of Polythene carry bags of less than 20 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing of packaging of food stuff and any other item which causes environmental problems.

2. Further, Clause 4(ix) of the guidelines provides that "Existing units (under PMRY, REGP or any other scheme of GOI or State Govt) and the units that have already availed Government Subsidy under any other schemes of GoI or State Govt. are nor eligible for PMEGP MM subsidy. It is however clarified here, that such units are open to schemes available for other purposes like, guarantee benefits under CGTMSE scheme and other schemes of MSME for their growth and development as well as for making them more productive and competitive.

3. On the above mentioned modification in the negative list Ministry of MSME has further clarified for operational guidelines of PMEGP which is given as under:

(i) Industries such as processing of pashmina wool and other products like hand spinning and hand weaving have been removed from the negative list, which means that khadi units are permitted under PMEGP. KVICs proposal for keeping handloom/power loom out of the purview of PMEGP has not been agreed to and therefore, in addition to Khadi units, handlooms and power looms units are eligible for funding under PMEGP. However, the subsidy/benefits for setting up of such units can be claimed from one Scheme of Govt, of India only.

(ii) In order to encourage the setting-up of manufacturing units under PMEGP, a ceiling of 10% on the extent of projects to be financed for transport activities may be imposed in the states/UTs except in specific regions (hilly region, IMER, A&N Islands, GOA, Puducherry, Lakshadweep, Daman & Diu, Dadra Nagar Haweli, J&K and LWE affected districts).

(iii) Ceiling on trading projects; No change has been made in the negative list in respect of trading activities as convened earlier vide Circular No:PMEGP/Ministry/2/2011-12 dated 28.08/04.09.2012. The contents of said circulars are reproduced as under:

a. Business/trading activities in the form of sales outlets may be permitted in NER, LWE-affected districts and A&N Islands. The LWE-affected districts, the extant classification on MHA may be adopted. The same was recently obtained from MHA's ID dated 08.02.2012.

b. Retail outlets backed by manufacturing (including processing) / service facilities may be permitted (Across* the country)
Note: That the retail outlets are backed by bonafide manufacturing / service facilities may be certified to be so by the districts level task force committee which recommends the case and specifically checked and certified to be so by the bank
which sanctions the loan.

c. The maximum cost of the project for business / trading activities as above (a and b) may be Rs.10 Lakhs (at par with the maximum project coast for service sector).

d. Maximum 10% of the Margin Money allocation in a year m a State may be used for business / trading activities as above (a, b and c).

e. The products sold from these sales outlets/retail centers may not fail in the negative list of PMEGP.

f. It may be ensured that the trading / business units should not exceed 10% of the financial allocation of the margin money allocated for the year to the state including the targets of KVIC, KVIB and DIG.

g. Further at para ii retail outlets backed by manufacturing / service facilities can be sanctioned only to new units / projects being submitted for sanction under PMEGP.

h. This will be a single composite project. For manufacturing with retail outlets the project cost should not exceed Rs.25.00Lakhs. For service projects with sales outlets the project cost should not exceed Rs.10.00 Lakhs. Hence the existing instructions on this issue may continue,

(iv) Items/activities banned by Govt. of India or other competent Govt, Authority will also be treated as banned under PMEGP, as provided under the existing instructions issued by KVIC.

4. The rest of PMEGP operational guidelines as issued in past will remain unchanged.

5. .The above inclusion may be publicized and included in ail leaflet, pamphlets and printed material 6f PMEGP scheme in the interest of public at large in a regional languages. State/Divisional Directors should take follow up action on the above modified list as a part of operational guidelines of PMEGP scheme and contents of this modified list may be brought to the knowledge of SLBC/SLMC/State Government /Bank/DICs/ KVIBs etc.


Please publish modules in offcanvas position.