DIRECTORATE OF RURAL EMPLOYMENT GENERATION PROGRAMME
OFFICE OF THE COMMISSIONER FOR KHADI AND VILLAGE INDUSTRIES
3, IRLA ROAD, VILE PARLE (W), MUMBAI - 56

 

No. REGP/RICS/M-728/Proc.Training/2004-05                                                                Dated: 22. 03. 2005

 

C I R C U L A R

 

Sub: Operational Guidelines for Rural Industries Consultancy Services (RURAL ICS).


        The issue of levying consultancy charges for the RICS services has been examined and reviewed in various fora and review meetings and it is felt that mandate of KVIC is basically to provide employment opportunities in rural area. Being a promotional and developmental organization operating on the grants of the Central Government, attempt to generate revenue out of its activities related to rural artisans and rural entrepreneurs has not been appreciated in several quarters as the ultimate aim should be to eliminate the exploitation of middlemen in the process.

        2. It has therefore been decided to make the following amendments in respect of consultancy/Service charges to be levied for the services offered by RICS for preparation of Detailed Project Report (DPR): -

 

(i)       RICS Cells are permitted to prepare projects costing upto Rs.25 lakhs.

(ii)      For project report costing upto Rs. 2 lakhs, no fees will be charged.

(iii)      For project report costing above Rs.2 lakhs and upto Rs. 5 lakhs, consultancy charges will be levied @ 1% of the Margin Money.

(iv)     For project report costing above Rs.5 lakhs and upto Rs. 10 lakhs, consultancy charges will be levied @ 1.5% of the Margin Money.

(v)      For project report costing above Rs. 10 lakhs and upto Rs.25.00 lakhs, a lump sum consultancy charges of Rs.5,000/- will be levied for every project.

(vi)     However, preparation of Project Report does consume paper, printing, stationery etc. Hence a nominal amount may be levied to bring certain value in providing the service and the cost of the stationery and printing will be charged from the proponent @ Rs.100/- per project in all cases, i.e. (ii), (iii) (iv) and (v) hereinabove.

(vii)    In case of Weaker Section Category i.e. SC, ST,OBC, Minority, Physically Handicapped, Women, Ex-servicemen and HBA for the purpose of calculating the consultancy charges, the margin money will be taken as 25% only and not 30% of the project cost. This is to ensure that the Weaker Section beneficiaries are not required to pay higher consultancy charges than the General category beneficiaries.

(viii)   All RICS cells shall obtain an "Undertaking" as per Annexure -'A' from the proponent, duly signed and addressed to the concerned Branch Manager of financing branch and annex the same alongwith DPR while forwarding the project proposal for consideration/sanction.
 

        3. The Registration charges for issuance of Provisional Registration Certificate (PRC) / and / or Certificate of Registration (COR) will remain unchanged in terms of the circular no. REGP/M-615/ (Registration) dated 27.3.2003.

        4. The above policy guidelines will come into effect from 01. 04. 2005 and are in supersession of the previous Circular on Service Charges.

Encl:- As above

                                                                                                                                                                     Sd/-

(MRS. MAYA S. SINHA)
COMMISSIONER FOR KVI

To:
1) All State/Divisional Directors, CKVI.
2) Chief Executive Officers of all State/UT KVI Boards.
3) In-Charge of all Rural ICS Cells.

Copy to:
1) All Zonal Heads in Mumbai/Guwahati.
2) All Industry / Programme Directors in Central Office.
3) All Training Centres.
4) All 27 Public Sector Banks, 196 Regional Rural Banks

Encl:- As above

                                                                                                                                                                    Sd/-

(MRS. MAYA S. SINHA)
COMMISSIONER FOR KVI


Annexure-'A'

 

FORMAT OF UNDERTAKING

To,

 

The Branch Manager,
…………………………….
…………………………….

 

Subject: Remittance of Service Charges on the project cost sanctioned

to the office of the Commissioner for KVI towards service charge to

Rural Industries Consultancy Service Cell – Regarding.

Sir,


I Shri./Smt./Ms./…………………………………………….residing at ……………………………………… intend to submit a proposal for setting up of a unit for …………………………………… under Rural Employment Generation Programme of the office of the Commissioner for KVI to your Bank. If the proposal is sanctioned by the Bank, Margin Money Rs……...……../- *applicable in terms of the circular no. REGP/RICS/M-728/Proc.Training/2004-05 dated 22.03.2005 may be remitted to the office of the Commissioner for KVI / KVIB immediately after disbursement of 1st installment out of my loan account by means of demand draft in favour of …………………………………………………..…payable at ………………………………………...(Bank name) ……………………………………………..(Branch) towards service rendered by the Rural Industries Consultancy Services Cell (Rural ICS), …………………………………………………(Place) for consultation and formulation of the project proposal for the undersigned.

 

                                                                                                                    Yours faithfully,
Place :
Date  :

                                                                                                        Name & Signature of Applicant
 

Note:- * 1) No Fees will be charged for the project costing upto Rs.2.00 lakhs.
2) 1% Margin Money for the project costing above Rs.2.00 and upto Rs. 5.00 lakhs.
3) 1.5% Margin Money for the project costing above Rs.5.00 and upto Rs. 10.00 lakhs to be calculated only on 25% of the Margin Money.
4) Rs.5000/- lump sum consultancy charges for the project costing above Rs.10.00 and upto Rs. 25.00 lakhs for every project.