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No: IJKC/DL/POLICY/2007-08                                                                                                                                                                8th March, 2008.


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 (SPY) 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.

1.            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 assistance extended by KVIC an Institution needs to obtain a Khadi Certificate from the Central Certificate Committee and enlistment with the Khadi and Village Industries Commission.
2.          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 Jubliee celebration at Vigyan Bhavan, New Delhi on 19th Nov.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.
3.          The Commission had deliberated the issue in its 554"' meeting held on 28"' Feb. 2008 and decided to   broaden   the   base   of  Khadi   &   Polyvastra   activities   by   opening   up   registration   for implementation of Khadi and Polyvastra programmes to Instutions organized and managed by people belonging to all social categories in rural areas in super sessions 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.
4.          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 constructed that due care is being taken, so as to provide adequate finance to implementing agencies promptly.
5.          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, awareness camps, workshops, EDPs and also through media publicity campaigns that are held from time to time.





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