No.REGP/JUTE/M-671/2003-04                                                                                         Date:  24.2.2004




             Sub:  Clarifications regarding funding of “ Jute based products” under

                                             Rural Employment Generation Programme of  the Commission.


                                      Ref: (i) Circular No.II/ECR/MM/211/M-40/98-99 Dated 31-3-99/19-4-99

                                            (ii) Circular No.II/ECR/MM/211/M-40/98-99 dated September 15/17, 1999.


            A negative list of activities which should not be considered for funding under the then Margin Money  Scheme of the Commission was circulated vide reference (i)above wherein  “jute and its products” was included under the negative list   However, it was subsequently clarified that the “jute and its products” stand deleted from the negative list circulated by the Commission vide Circular referred at reference(ii)above dated 15/17September, 1999.


2.         Now the Commission considering the request of  Ministry of Textiles, Govt. of India, decided to clarify that financing of “jute based products” under Rural Employment Generation of the Commission may be done by observing following conditions:-


    a)  The process of conversion of raw jute into yarn and yarn into fabric/hessains by weaving will not be covered under REGP scheme.


     b)  National Centre for Jute Diversification (NCJD) through its jute centers will provide following services:


(i)      HRD through training, skill up-gradation, entrepreneurship development and technology dissemination will be covered under activities run by jute service  centers which are located in various parts of the country.

(ii)      Jute Services Centres will link applicants to the respective financing banks for seeking financial assistance under KVIC-REGP scheme.

(iii)     At the end each month, NCJD will furnish information to State Office/Regional Office of KVIC which will contain the list of entrepreneurs sponsored through Banks, project details etc.

(iv)     The entrepreneurs assisted under REGP will be provided EDP training by KVIC on cost sharing basis.


3.          All State/Divisional offices of the Commission State and Union Territory level  Khadi & V.I.Boards  and Banks implementing Rural Employment Generation Programme of the Commission may take a careful note and inform their field functionaries to undertake financing of “jute based products” accordingly.


4.          All  other terms and conditions stipulated in the negative list for the purpose of  financing under the scheme remains unchanged.




                                                                                       Dy.CHIEF EXECUTIVE  OFFICER

                                                                                              (Rural Employment Generation Programme)                


1.      All State/Divisional Offices of KVIC

2.      All State/UT KVI Boards

3.      The Chairman & Managing Directors of 27 Public Sector Banks

4.      Chairman of all 196 Regional Rural Banks   


Copy to:


1. Jute Commissioner, Kolkata

2. The Executive  Director, National Centre for Jute Diversification, Kolkata

3. Development Commissioner, SSI, New Delhi

4  Development Commissioner, Handicrafts, New Delhi 

5. Joint C.E.O,

6. All  Dy.CEOs of the Commission in Mumbai and Guwahati:

7. All Programme/Industry Directors

8. All Sections in Central Office

9. All MDTCs under the Commission in and outside Mumbai