Khadi and Village Industries Commission

Choosing the right route

• Khadi producers and institutions: start with the Khadi Vikas Yojana, then check the interest subsidy scheme if you need a bank loan.
• Individuals starting a micro enterprise: PMEGP is the scheme the homepage features. Confirm eligibility on the official PMEGP portal.
• Youths who want a skill: enquire about the skill development courses through the training centres.

How applications work

• Khadi institutions must hold KVIC or state KVI board affiliation, a valid khadi certificate and an approved annual budget.
• Interest subsidy applicants must first obtain an eligibility certificate from KVIC, then borrow from a bank against it.
• For training enquiries, write to the Directorate of Capacity Building at cb.kvic@gov.in, or call the Mumbai headquarters on 022 69168912.

How selection works

• KVIC's pages do not set out selection criteria for every scheme. Ask the relevant office before you prepare a file.

The Khadi and Village Industries Commission (KVIC) is the Government of India's nodal body for khadi and village industries. It is headquartered at Gramodaya in Vile Parle, Mumbai, and runs or channels schemes for khadi producers, rural village industries and skill training. The homepage features the Prime Minister's Employment Generation Programme (PMEGP) alongside its own schemes.

Who the schemes are for

Most of KVIC's financial support goes to institutions rather than to individual founders. The Khadi Vikas Yojana guidelines define eligible khadi institutions as those affiliated or registered with KVIC or with a state or union territory KVI board, holding a valid khadi or polyvastra certificate and an annual budget approved by KVIC. The interest subsidy scheme covers loans raised by registered institutions, co-operative societies and trusts created for public purposes of a charitable or religious nature. An individual founder is not the usual applicant on these routes.

The schemes on the site

PMEGP is described on the homepage as a credit-linked subsidy, launched by the Ministry of MSME in 2008-09, for creating employment in both rural and urban areas. KVIC's pages do not set out PMEGP eligibility or the application steps, so check those on the official PMEGP portal before you plan around the scheme.

The Khadi Vikas Yojana covers market development assistance for khadi, an interest subsidy, a khadi artisans workshed scheme, support for infrastructure at weaker khadi institutions, a Centre of Excellence for Khadi, khadi quality assurance, marketing promotion through exhibitions, and a science and technology scheme.

The interest subsidy works through an eligibility certificate issued by KVIC. The borrowing agency pays 4 percent interest on its bank loan, and KVIC bears the difference between the bank's rate and 4 percent. The scheme dates from May 1977.

Under Gramodyog Vikas Yojana, KVIC's training page invites applications for training combined with the distribution of tool kits, handled through its district offices. The homepage defines a village industry as one located in a rural area that produces goods or renders a service, within a limit on per-head investment. Calls under this scheme are dated, so check the training page for the call that is open.

Skill development training

KVIC runs skill development training for youths through departmental, institutional, KVI board and specialised training centres. Its stated aim is to create entrepreneurs and self-employment opportunities. The Directorate of Capacity Building in Mumbai handles enquiries about the courses.

Who runs it

KVIC is a Government of India body; its homepage footer says so. Its homepage lists the state and union territory KVI boards among its implementing agencies, so a founder outside Mumbai may find a state khadi board closer to the work. Check which body administers a given scheme before you apply, because the same scheme name can appear on both a central and a state page.

Before you apply

Read the current guidelines for the scheme you need, since amounts, eligibility and deadlines change by year and by call. Where the homepage and the guidelines state different rates for the same market development assistance, the revised guidelines are the document to follow.