Kerala Khadi and Village Industries Board is a statutory body constituted by the act IX of 1957 of Kerala Legislative Assembly. The Board is vested with the responsibility of organising, promoting and developing Khadi and Village Industries in the State. It is the duty of the Board

* to start, encourage, assist and run Khadi and Village Industries,
* to conduct training centres to arrange for training, arrange for publicity and popularising of goods
* to arrange for the supply of raw materials to Khadi and village Industries and for the sale of their finished products
* to carry on trading activities.
* to grant loans and other assistances for the development of Khadi and Village Industries.

In order to perform the above duties, the board receives funds from the State Government as grant under plan and from the KVIC as loan and grant. Financial assistance is also being recommended through other financial institutions.

The schemes of the Board are being implemented through Co-operative Societies, registered institutions, individuals and departmental units.

At present, the following schemes are implemented by the Board.

1. Consortium Bank Credit Scheme of KVIC.
2. Rural Employment Generation Programme (Margin Money Scheme) of KVIC
3. State Plan Schemes

1. Consortium Bank Credit Scheme
The scheme was introduced by the KVIC during 1995 – 96, as per the recommendations of the High Power Committee appointed by the Government of India with Chairman as the Hon’ble Prime Minister to study the problems on Khadi and Village Industries Sector.

Funds for assistance are being extended to the Board as loan from the 1000 crores of consortium fund of the Nationalised banks on guarantee of the State Government. The Board, in turn disburses the funds as loan directly to the beneficiaries based on the projects submitted by them.

As per the scheme, individuals can submit projects up to Rs. 10 lakhs and institutions up to Rs. 25 lakhs. At least 10% of the project cost should be the beneficiaries contribution for SC/ST, OBC Ex-service etc. own contribution may be 5% of the Project cost.

Margin Money @ 25% is granted to the beneficiaries for their loan up to Rs. 10 lakhs. For projects above Rs. 10 lakhs, but below Rs. 25 lakhs, 25% for Rs. 10 lakhs and 10% for the amount exceeding Rs. 10 lakhs. This margin money amount is initially treated as loan and on successful implementation of the unit and prompt repayment it will be treated as grant.

The board has disbursed an amount of Rs. 44.86 crores to the beneficiaries under this scheme to establish 1544 units creating employment opportunities to about 12400 persons. Out of this, Rs. 345.73 lakhs was for Khadi Industry.

2. Margin Money Scheme
This Scheme was launched by the KVIC during 1996-97 with a view to generate two million jobs among unemployed rural people under the KVI Sector

Under this programme, the beneficiaries are entitled to get Margin Money assistance as grant for the loans availed of from various financial institutions and banks, for establishing V.I. units in rural areas as approved by the KVIC. The beneficiaries have to submit project proposals recommended by the concerned project officer of the board to the banks for getting finance. On receipt of the orders of the bank sanctioning loan and release of first installment of loan, the board will release the Margin Money grant to the joint account of the beneficiary and the project officer concerned.

Margin Money is sanctioned by the board at the following rates.

1. For projects up to Rs. 10 lakhs – Margin Money is 25% of the Project cost
2. For projects above Rs. 10 lakhs and up to Rs. 25 lakhs – 25% of the first 10 lakhs and 10% of the balance amount.

For beneficiaries belonging to SC/ST, women, minority community and their institutions, Ex-service men, physically handicapped, Margin Money will be 30%.

KVIC has allotted a sum of Rs. 6.70 crores to the Board as Margin Money grant to the beneficiaries. The Board has disbursed the whole amount to 814 units creating 6467 employment opportunities to rural people under the V.I. Sector.
State Plan Schemes

The Board is implementing departmental schemes mainly under the State Plan Schemes. One major scheme for employment generation under the plan scheme is the Interest Subsidy Scheme.

Under this scheme, interest subsidy @ 8.5 % is extended to the beneficiaries for their loans availed from various financial institutions for establishing V.I. Units. So far the Board has financed 2006 Co-operative Societies, 2150 registered institutions and 15544 individuals. In addition to this, 424 departmental units were also started.

Out of these 689 Co-operative Societies 1353 registered institutions, 13390 individual units and 358 departmental units are working.

As on 31.03.2002, there were 6556 artisans working under Khadi Sector and 1,71,746 persons under V.I. Sector. Total employment was 1,78,302 persons. The Board also runs sales outlets in all districts departmentally and on agency basis. There are 160 sales outlets under the Board.

For more details, contact
Secretary
Kerala Khadi and Village Industries Board
Vanchiyoor P O
Thiruvananthapuram –35
Phone No: 0471-2471696
Fax No : 0471-2479525