Programme for promotion of V.I. Cluster - Rural Industry Service Centre (RISC)
for Khadi and V.I. activity up to Rs.5.00 lakhs
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 provide 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 :
  1. KVIC and State KVIBs.
  2. National level / State level Khadi and V.I. Federations
  3. Khadi and V.I. Institutions affiliated to KVIC and KVIBs.
  4. 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)

  1. Provide testing facilities by establishing laboratory to ensure quality of the products.
  2. 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
  3. 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:
  1. Provide training facilities to upgrade artisan’s skill in order to increase their earnings.
  2. Provide new design or new product, diversified product in consultation with experts /agencies for a value addition of rural manufacturing units.
  3. Provide raw material support which mainly depend on seasonal procurement.
  4. 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.
Financial Pattern NE States Other areas
a) KVIC’s Share 90% 75%
b) 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. : Maximum 25% of project cost.
d) Skill upgradation & training  and/ or  Product catalogue : Maximum 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 :

  1. Director Industry of concerned State Govt. or his representative not below the rank of Additional Director : Member
  2. CEO of concerned State KVI Board : Member
  3. Representative of Lead Bank in the State / Region : Member
  4. Representative of NABARD : Member
  5. Secretary of KVI Institution Having highest turn over in the State : Member
  6. State/Regional Director, KVIC : Member/Convenor
Terms and References :
  1. The Committee will evaluate capability of the organisation to implement
  2. The Committee will examine commercial viability of the project.
  3. Accord approval upto project of Rs. 5 lakhs
  4. 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.
  • Project 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

                                                                                                                           Sd/-
Dy. Chief Executive Officer (VI)

Programme for promotion of V.I Cluster - Rural Industry Service Centre(RISC)
for Khadi and V.I. activity up to Rs. 25.00 lakhs
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 :
  1. KVIC and State KVIBs.
  2. National level / State level Khadi and V.I. Federations
  3. Khadi and V.I. Institutions affiliated to KVIC and KVIBs.
  4. 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)

  1. Provide testing facilities by establishing laboratory to ensure quality of the products.
  2. 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
  3. 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:
  1. Provide training facilities to upgrade artisan’s skill in order to increase their earnings.
  2. Provide new design or new product, diversified product  in consultation with experts /agencies for a value addition of rural manufacturing units.
  3. Provide raw material support, which mainly depend on seasonal procurement.
  4. 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
  • Pottery
  • Leather
  • Woodwork
  • All other V.I. except those which are in the negative list.
Financial Pattern NE States Other areas
a) KVIC’s Share 90% 75%
b) 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.25.00 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. : Maximum 25% of project cost.
d) Skill upgradation & training  and/ or  Product catalogue : Maximum 10% of Project cost.

However, a, c, d can be reduced depending upon requirements as the case may be.
Appraisal and Recommendation Authority :

The project proposals to set up Rural Industry Service Centre (RISC) upto Rs. 25 lakhs will be scrutinized and recommend by a Committee constituted for the purpose at State / Regional level, consisting of following members for sanction:

  1. Director Industry of concerned State Govt. or his representative not below the rank of Additional Director : Member
  2. CEO of concerned State KVI Board : Member
  3. Representative of Lead Bank in the State / Region : Member
  4. Representative of NABARD : Member
  5. Secretary of KVI Institution Having highest turn over in the State : Member
  6. State/Regional Director, KVIC : Member/Convenor
Terms and References :
  1. The Committee will evaluate  capability of the organisation to implement
  2. The Committee will examine commercial viability of the project.
  3. Evaluate and monitor the execution of programme in the Rural Industry Service Centre (RISC)
Technical appraisal Committee :

The project proposals to set up Rural Industry Service Centre (RISC) upto Rs. 25 lakhs will be technically appraised by a Committee constituted for the purpose at Central level, Central Office, KVIC, Mumbai-56, consisting of following members after appraisal and recommendation of State / Regional level Committee:

  1. Financial Advisor, KVIC : Chairman
  2. General Manager of lead Bank : Member
  3. One Expert Member from IIT Concerned with subject of the project : Member
  4. Dy. Chief Executive Offcer (VI) : Member
  5. Director (Finance) : Member
  6. Programme/Industry Director : Member
  7. Director (VIC) : Member / Convenor
Terms and References :
  1. The Committee will evaluate  the recommendation of the State / Regional level Committee before Technically appraised the Project.
  2. The Committee will examine commercial viability of the project.
  3. The Committee will examine the collateral security or surety bond submitted by the implementing agency and recommended by the State / Regional level Committee.
Mode of Sanction :

Once the project up to Rs. 25.00 lakhs have been technically appraised by the Technically Appraisal Committee, the concern Industry/Programme Director will process the proposal and placed before the SFC either Khadi and VI as the case may be.

Security for Release of fund :  

Surety Bond must be submitted against the release to the tune of 90% of the project cost of maximum upto Rs. 25.00 Lakhs for NEZ and 100% women artisan best institution/organisation and 75% of the project cost of maximum Rs.25.00 lakhs for others.

The surety Bond must be register with the competent authority of the State the following points must be taken into account while submitting the Surety Bond to KVIC.

  1. Resolution of the institution.
  2. Original Surety Bond duly stamped (Non-Judicial) as per the stamp Act of the State.
  3. Original Valuation Report of the property of the Surety/ies from Government Registered valuer/Revenue Authority.
  4. Original Blue Print/Lay out plan of the property of the Surety/ies duly approved by the competent Authority.
  5. Original extract of record of rights certified by the Revenue Authority.
  6. Original Non-encumbrance Certificate in respect of the Property/ies from a Govt. Pleader or from the Revenue/Competent authority certifying that the property is marketable and free from all encumbrance.
  7. The Borrower should submit all extract from the revenue record evidencing that charge has been created on the revenue record in respect of the property/ies of the surety bond/s after sanction and before release of funds.
In addition to the surety bond the implementing agency must mortgage their assets i. e. machinery, building etc. to the Commission created from out of the RISC fund before the release of 3rd installment.

However incase of the institution already enlisted with KVIC and carring out Khadi & VI programme and already having infrastructure land , building, etc. and also mortgaged the property to the Commission, if they desired to take up the RISC activity, they have to enhance the limit of EM created to the tune of RISC project and do not required to execute surety bond.

Release of fund to state/Divisional offices of KVIC :

After SFC approval of the proposal, the funds will be released as per the guidelines prescribed in the standing order No-1606

Mode of release of installment of funds to beneficiary institution :

1st installment for Building/Infrastructure : Maximum 15% of project cost.
2nd installment for Plant & Machinery for manufacturing and or testing facilities and packaging : Minimum 50% of project cost..
3rd installment for Raw material /new design, product Diversification, etc.   : Maximum 25% of project cost.
4th installment for Skill upgradation & training and/ or Product catalogue : Maximum 10% of Project cost.

Note- 1st installment will be released on the basis of feasibility report of the field official and subsequent installment on the basis of utilisation certificate duly inspected by the field official of the State/Divisional office concerned and on satisfaction of the State /Divisional Director. Note- 1st installment will be released on the basis of feasibility report of the field official and subsequent installment on the basis of utilisation certificate duly inspected by the field official of the State/Divisional office concerned and on satisfaction of the State /Divisional Director.
Stages of Programme implementation :
  • Identification of the cluster.
  • Selection of a Cluster Development Agency.
  • Technical feasibility by and expert or an agency.
  • Project 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.25.00 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.

                                                                                                                           Sd/-
Dy. Chief Executive Officer (VI)
Statewise, Quarterwise Action Plan for RISC for the year 2005-06. (Click here)