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.Traing./2004-05                                                        Date:30th November, 2004

 

C I R C U L A R


Sub:- Operational Guidelines for Rural Industries Consultancy Services – Regarding.
Ref : Letter No.REGP/Consultancy/M-82/2003-04 dated:17th December, 2003.


        Operational guidelines for Rural Industries Consultancy Services (RICS) Cell was issued in order to establish and buildup the required databank by each cell to deliver effective consultancy services to the visiting prospective rural artisan / entrepreneurs. On reviewing the monthly progress of Rural ICS, it is felt necessary to regularize the present functional system of Rural ICS in order to bring functional uniformity among all Rural ICS. Hence, the following operational guidelines are issued for Rural ICS for strict compliance and necessary action.

1. Stationery charges of Rs.100/- only for preparation of each DPR :

The Rural ICS is to provide consultancy services besides formulating the Detailed Project Report (DPR) on behalf of the proponent free of cost. During training at Mumbai, Incharge of few RICS reported that a few beneficiaries insisted on preparing 2 to 4 project reports since it is free of cost.
In order to bring a sense of sincerity and to avoid unwanted expenditure on casual visitors who approach the cell without seriousness, it has been decided to charge Rs.100/- for preparing each project report as stationery charge. However, the beneficiary who opts for project report up to Rs.50,000/- may be exempted from such payment. The Rural ICS shall issue proper receipt against the amount collected from each proponent and keep the same at the cell itself with proper account. This amount may be remitted to the office of the Commissioner for KVI at Mumbai at the end of August and February in every financial year under IRG of REGP.

2. Internet connection for Rural ICS:

For effective and proper monitoring of REGP scheme and to keep track on the application of the proponent to know fate of his / her application, the erstwhile Commission has launched ‘Online application tracking system’ on the website.

The data entry on each application and its status has to be entered by CKVI/KVIB/RICS/Banks from time to time. Hence, all Rural ICS cells are hereby informed to make use of internet facility available at nearby cyber cafι for the purpose with maximum usage of 100 hrs. within the budget of Rs.2000/- till 31st March, 2004 or on actual usage time less than that of the prescribed budget limit. The expenditure incurred on this score may be booked under contingency head of Rural ICS.

3. Forwarding the Proposal to CKVI / KVIB by Rural ICS:

As per procedure in vogue the Rural ICS cell shall submit the proposal to requisite Bank through State / Divisional Office of CKVI.

As RICS functions either under the administrative control of the office of the Commissioner for KVI (erstwhile Commission) or under the administrative control of a State Khadi & V.I. Board, Rural ICS may forward the project proposal to State / Divisional Offices of CKVI or KVIB, as the case may be, for onward submission to the requisite Bank. While forwarding the same to concerned Bank by office of KVIB, a copy of the forwarding letter shall be endorsed to the concerned State / Divisional office under the office of the Commissioner for KVI for the purpose of tracking, and to Rural ICS cell for information. The offices of CKVI / KVIB shall forward the project proposal to Banks within 7 working days. The financing branch will claim the Margin Money from the respective Nodal Branch of CKVI / KVIB according to distribution of Banks.

4. Service Charge:

The Rural ICS cells will charge 1% of total project cost from the proponent which will be included in the project cost once the project is sanctioned and funds are disbursed by the Bank. RICS cells shall obtain an ‘Undertaking’ on a prescribed format from the proponent duly signed and addressed to the concerned Manager of financing branch and annex the same while forwarding the proposal as per Annexure- 'A'.

5. Computer Software for formulation of Detailed Project Report:

Each Rural ICS cell has been provided with the software for formulation of Detailed Project Report (DPR) on CD. The said software is to be used exclusively by RICS Cell and the same should not be copied and transferred to others without prior permission of the Director (REGP), Office of the Commissioner of KVI, Mumbai. Any misuse of the software by any employee including those working in the Rural ICS Cell will be viewed seriously and the erring employee shall be liable for disciplinary action.

6. Follow-up with visiting prospective rural entrepreneur.

The prospective rural entrepreneur visiting the Rural ICS are required to be reminded through follow-up action by the Rural ICS cells as a follow up of their visit. For this purpose, a communication is to be sent to all visitors after 15 days of their visit through a post-card to intimate / invite him / her for further visit to become a rural entrepreneur. All Rural ICS cell shall use the standard format of communication in the postcard as detailed below which may be translated in the local language as per Annexure- 'B'.

7. DATA BANK

All Rural ICS Cell shall collect and maintain general information and procedural aspects required for starting new units such as Licensing, taxation and technical information with regard to availability of machinery, raw material, source of supply and marketing of goods and services. Each Rural ICS Cell has to develop complete Data Bank as already communicated earlier.

For developing Data Bank, information may also be collected from taxation/licensencing authority of Central/State or Local-Self Government authority etc. Other details may also be collected from Economic and Statistical Bureau, Chamber of Commerce & Industries, District Industries Centres (DIC), District Statistical Office, Zilla Parishad (Statistical Wing), Panchayat Samiti etc more specifically on technical areas. All RICS Cells have to initiate action for collecting the required information and complete their data base of their State/Region. The information may be stored in the computer system provided to RICS Cell latest by December 2004 and the data may be up-dated periodically, say every 3 months.

8. 50% of the projects formulated through Rural Industries Consultancy Services (RICS).

The erstwhile Commission in its meeting held on 13.9.2004 decided that all efforts should be made to ensure that 50% of the projects costing upto Rs.5.00 lakhs funded by the Banks are to be prepared through Rural Industries Consultancy Services (RICS).

9. Submission of Rural ICS Progress Report with REGP Monthly Progress Report.

As per letter no. REGP/RICS/M-726/MR/2004-05 dated.07-10-2004 it has been communicated that the Progress Report of Rural ICS Cell are to be linked with the monthly progress report of REGP every month.

The State / Divisional Directors shall ensure that the Rural ICS cells functioning under their jurisdiction submit the monthly report in time.

The reporting period in respect of RICS at field and State/Divisional office or KVI Board level may be followed as per REGP monthly reporting system i.e. for the period from 21st of previous month to 20th of current month.

10. Copy of this communication may please be forwarded to the controlling Officers of all Public Sector Banks and Regional Rural Banks by the concerned State/Divisional Directors and to the Controlling Offices of Private Sector Scheduled Commercial Banks and Cooperative Banks in the State/UT by the concerned KVI Boards to ensure implementation.

Encl:- Annexure 'A' and 'B'                                                                                        Sd/-
                                                                                                                    (K. K. GUPTA)

DY. Chief Executive Officer (REGP)

                                                                                                               Tel. (022) 2620-6411

To,

1) All State/Divisional Directors, CKVI.
2) Chief Executive Officers of all State/UT KVI Boards.
3) All In-charges of 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



Annexure-'A'

FORMAT OF UNDERTAKING

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

 

Subject: Remittance of 1% of 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, 1% of the project cost sanctioned therein may be remitted to the office of the Commissioner for KVI 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


Annexure- 'B'

RURAL INDUSTRIES CONSULTANCY SERVICES CELL (RURAL ICS)
OFFICE OF THE COMMISSIONER FOR KHADI & VILLAGE INDUSTRIES

…………………………………………………………………………………………..

 

                                                                                              DATE :


Reference: Your enquiry / visit to Rural ICS on……………………


Sir / Madam,


Please refer to your enquiry on phone / personal visit to the Rural ICS on the date mentioned above. It is hoped that the information / material provided by our cell about various village industries activities was beneficial to you to decide on the field to become a rural entrepreneur. We will be happy if you revert back to us for providing further assistance to you on the following from 11.00 AM to 5.00 PM on any working day.

 

a. Information about various schemes/activities under Rural Employment Generation Programme.

b. Technical / General information about setting up of various village industries.

c. Information about different Machinery / Tools for different products & their source of supply.

d. Raw materials and their source of supply.

e. Preparation of Detailed Project Report (DPR).

f. Liaison with the Bank of your choice/in your service area.

g. Support services from other agencies/
organizations/local authorities for setting up of a project.

h. Information about Marketing of goods and services.

i. Any other service(s) related to rural industries.

                               Yours faithfully,


                                INCHARGE (RURAL ICS)


To,
Shri/Smt/Ms………………………
Vill/Town:………………………
At Post:…………………………
Block/Tehsil:………………………
District:…………………………
Pin Code:………………
Phone No:…………………
(with STD Code)