Programme for promotion of V.I. Cluster - Rural Industry Service Centre (RISC)
for Khadi and V.I. activity up to Rs.5.00 lakhs

Rural Industry Service Centre Photo Gallery(Click here)

Title of the Programme : Programme for promotion of V.I Cluster- Rural Industry Service Centre (RISC) for Khadi and V.I. activity.

Objectives of the Programme :

• Provide backward forward linkages to Khadi & V.I. activities in a cluster.
• To provided services like raw material support, skill up-gradation, training, Quality Control, Testing facilities, marketing promotion, design & product development in order to strengthen the rural clusters.

Implementing Agency :

• KVIC and State KVIBs.
• National level / State level Khadi and V.I. Federations
• Khadi and V.I. Institutions affiliated to KVIC and KVIBs.
• NGO who have already worked in implementation of programme relating to development of rural artisans in activities excluding the negative list of KVIC with financial assistance at least for 3 projects from any Ministry of State / Central Government, CAPART, NABARD and UN agencies.

Rural Industry Service Centre (RISC): “Rural Industry Service Centre (RISC) is the Common Facility Unit which aims to provide infrastructural support and necessary services to the local units to upgrade their production capacity, skill upgradation and market promotion.”

One of the following services must be covered by the Rural Industry Service Centre (RISC)

• Provide testing facilities by establishing laboratory to ensure quality of the products.
• Provide improved machinery/equipment to be utilised as common utility facilities by the nearby unites /artisans to enhance production capacity or value addition of the product
• Provide attractive and appropriate packaging facilities and machineries to the local unties / artisans for better marketing of their products.

In addition of the above facilities RISC can also cater to following services:

• Provide training facilities to upgrade artisan’s skill in order to increase their earnings.
• Provide new design or new product, diversified product in consultation with experts /agencies for a value addition of rural manufacturing units.
• Provide raw material support which mainly depend on seasonal procurement.
• Prepare product catalogue.

Types of Khadi & Village Industries to be covered under Rural Industry Service Centre (RISC) :

• Khadi & Poly Vastra post weaving value addition facilities.
• Herbal products: Cosmetics and Medicines.
• Edible Oil
• Detergents & Soaps
• Honey
• Hand Made Paper
• Food processing
• Bio-Fertilizer / Bio-Pesticides / Bio Manure
• Potteries
• Leather
• Woodwork
• All other V.I. except those which are in the negative list.

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:

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.