for Khadi and V.I. activity up to Rs.5.00 lakhs
|Own Contribution or Loan from Bank/Financial Institutions||10%||25%|
In case of North Eastern States 90% of project cost will be provided by KVIC upto a project cost of Rs.5.00 lakhs.
The financial assistance should follow the norms below:
|a)||Building/Infrastructure||Maximum 15% of project cost|
|b)||Plant & Machinery for manufacturing and or testing facilities and packaging.||Minimum 50% of project cost|
|c)||Raw material /new design, product Diversification, etc.||Minimum 25% of project cost|
|d)||Skill upgradation & training and/ or Product catalogue||Minimum 10% of project cost|
However, a, c, d can be reduced depending upon requirements as the case may be. Sanctioning Authority : The project proposals to set up Rural Industry Service Centre (RISC) upto Rs. 5 lakhs will be appraised and sanctioned by a Committee constituted for the purpose at State / Regional level, consisting of following members :
- Director Industry of concerned State Govt. or his representative not below the rank of Additional Director : Member
- CEO of concerned State KVI Board : Member
- Representative of Lead Bank in the State / Region : Member
- Representative of NABARD : Member
- Secretary of KVI Institution Having highest turn over in the State : Member
- State/Regional Director, KVIC : Member/Convenor
Terms and References :
- The Committee will evaluate capability of the organisation to implement
- The Committee will examine commercial viability of the project.
- Accord approval upto project of Rs. 5 lakhs
- Evaluate and monitor the execution of programme in the Rural Industry Service Centre (RISC)
Release of fund : After Committee approved the proposal, the funds will be released in 2 installments by State/Regional Directors. The first installment will be 50% of the amount share of KVIC for the project. The second and last installment will be released only after amount released by KVIC and 50% of the share of the organisation is utilized. Stages of Programme implementation :
- Identification of the cluster.
- Selection of a Cluster Development Agency.
- Technical feasibility by and expert or an agency.
- EProject formulation.
- Approval of the project and release of funds.
- Monitoring and Evaluation.
OPERATIONALISATION AND PROGRAMME IMPLEMENTATION :
For the purpose of establishing Rural Industry Service Centre (RISC), it may be ensured that the number of artisans / Village Industries units shall not be less than 25 individual artisans or 5 REGP units / VI Institutions / Societies for projects upto Rs.5.00 lakhs.
The implementing agency / Organisation should have its own land where the Rural Industry Service Centre (RISC) will be established.
The period of setting of project should not be more than 6 months.
After submission of the proposal by the implementing agency to set up Rural Industry Service Centre (RISC), State / Regional Director shall conduct technical feasibility and place the proposal with his recommendations before State Level Committee. Technical feasibility may done either by DIC or by State Office or State Board
The funds shall be released based on the progress of work report received periodically from State / Regional Director and based on activities of the project and also within a specific time frame for timely completion of the project.
The State / Regional Director of the concerned state where the project is located shall ensure monitoring and evaluation and timely completion of project.
After obtaining approval by the State Level Committee for setting up of project State/Regional Director will intimate to concerned Industry Programme Directors at Central Office of the Commission.
Dy. Chief Executive Officer (VI)